Quick Verdict: Washington Trust Bancorp reported Q1 2026 net income of $12.6 million and diluted EPS of $0.66, up modestly year over year but down sequentially as credit costs and nonaccrual loans increased. Revenue and net interest income grew versus Q1 2025, but higher provisions and asset quality pressure tempered results. After-hours movement was not disclosed in the release.
About Washington Trust Bancorp
Washington Trust Bancorp, Inc. is the publicly traded holding company for The Washington Trust Company, trading on Nasdaq under the ticker WASH. Founded in 1800, it is described as the oldest community bank in the United States and the largest state‑chartered bank headquartered in Rhode Island. The company is based in Westerly, Rhode Island, and positions itself as one of the Northeast’s premier financial services firms.
Washington Trust provides commercial banking, mortgage banking, personal banking, and wealth management and trust services across Rhode Island, Connecticut, and Massachusetts. At March 31, 2026, total assets were $6.46 billion and total shareholders’ equity was $546.8 million. With a market value per share of $33.46 and book value per share of $28.72 at quarter-end, the bank’s equity-to-assets ratio stood at 8.47% and its total risk‑based capital ratio at 13.38%, comfortably above well‑capitalized regulatory thresholds.
Top Financial Highlights
- Net income was $12.6 million in Q1 2026, up from $12.2 million in Q1 2025, but down from $16.0 million in Q4 2025.
- Diluted EPS came in at $0.66, up $0.03 year over year and down from $0.83 in the prior quarter.
- Net interest income was $40.5 million, up 11% or $4.1 million versus Q1 2025, and essentially flat sequentially.
- Net interest margin (NIM) rose to 2.63%, up 7 basis points versus Q4 2025 and 34 basis points versus Q1 2025, reflecting benefits from balance sheet repositioning and lower funding costs.
- Provision for credit losses increased sharply to $4.0 million from $1.2 million a year ago and $0.6 million in Q4 2025, driven mainly by higher specific reserves tied to commercial real estate office exposures.
- Noninterest income totaled $17.3 million, down 6.5% sequentially but up on an adjusted basis year over year once prior‑year property sale gains are excluded.
- Wealth management revenues were $10.6 million, up 8% from Q1 2025, with average assets under administration up 10% year over year to $7.50 billion at period end.
- Mortgage banking revenues reached $3.0 million, up 32% from Q1 2025 despite a seasonal 6% sequential decline.
- Total loans stood at $5.01 billion, down 2% from both December 31, 2025 and March 31, 2025, as management continued to manage balance sheet size and risk exposure.
- Total deposits were $5.16 billion, down 2% quarter over quarter but up 2.5% year over year; in‑market deposits rose 3% versus Q1 2025.
- Cash and contingent liquidity were robust, with contingent liquidity of about $2.04 billion including available cash, unencumbered securities, and borrowing capacity.
- Capital ratios remained strong: total risk‑based capital 13.38%, Tier 1 risk‑based 12.46%, and common equity Tier 1 11.99%.
- Cash dividend of $0.56 per share was declared for the quarter and paid on April 10, 2026, unchanged from prior periods.
- Nonaccrual loans rose to $40.4 million (0.81% of total loans), largely due to two commercial real estate office credits moving to nonaccrual status, while the allowance for credit losses on loans increased to $41.1 million (0.82% of total loans).
- Return on average equity was 9.23% and return on average assets was 0.78%, both modestly above the year‑ago quarter but below Q4 2025 levels.
(The release does not present a single “total revenue” figure or operating cash flow line in the traditional sense; the key topline driver is net interest income supplemented by noninterest income.)
Beat or Miss?
Available third‑party data suggest that Washington Trust’s revenue was below expectations in Q1 2026, though definitions of “revenue” vary across sources (net interest + noninterest income versus broader totals). Consensus EPS and revenue estimates are referenced in previews but not reconciled explicitly in the company’s own release.
Q1 2026 Results vs. Expectations
| Metric | Reported | Difference/Analysis |
| EPS (diluted) | $0.66 | Consensus EPS previews suggested growth vs. prior year; actual was above Q1 2025 but below Q4 2025. Precise consensus numbers are not disclosed in the release, so a formal beat/miss on EPS cannot be confirmed. |
| Net interest income | $40.5 million | Up 11% YoY and essentially flat QoQ; reflects higher NIM offset by lower interest‑earning assets. No explicit analyst NII consensus provided. |
| Noninterest income | $17.3 million | Down versus prior year when including a large 2025 property sale gain; on an adjusted basis, rose about 11% YoY. Expectations are not disclosed. |
| “Revenue” (NII + noninterest income proxy) | Approx. $57.8 million net of interest expense, as cited in external commentary, versus higher “total revenue” framing in some data sources. | Some third‑party sources characterize the quarter as a miss versus market forecasts, citing revenue of about $57.8 million versus higher expectations, though definitions differ. |
Given these discrepancies and the lack of official consensus figures in the company’s press release, the quarter appears directionally mixed: solid underlying margin improvement but softer‑than‑hoped topline and higher credit provisioning relative to some market expectations.
What Leadership Is Saying?
“Washington Trust delivered solid first quarter 2026 results, led by an increase in net interest margin, which reflects the strength of our core banking business and continued benefits from the December 2024 balance sheet repositioning transactions.”
“Our balance sheet remains strong, and as we move through 2026, Washington Trust is focused on delivering long‑term shareholder value while providing customers with personalized service, local decision‑making, and a comprehensive suite of financial products and services.”
(The release attributes both of these statements to Chairman and Chief Executive Officer Edward O. “Ned” Handy III; it does not include a separate quote from a CFO, so a distinct CFO‑specific margin commentary is not available from this document.)
Historical Performance
The table below compares Q1 2026 to Q1 2025 on key income statement metrics, using the company’s condensed consolidated statement of income.
Washington Trust YoY Results
| Category | Q1 2026 | Q1 2025 | Change (%) |
| Net interest income | $40.5 million | $36.4 million | +11.3% (driven by higher NIM and lower funding costs, partially offset by lower interest‑earning assets) |
| Net interest income after provision for credit losses | $36.5 million | $35.2 million | +3.7% (higher provision partially offset NII growth) |
| Noninterest income | $17.3 million | $22.6 million (includes a one‑time $7.0 million gain on sale of bank‑owned properties) | –23.6% reported; excluding the 2025 gain, adjusted noninterest income rose about 10.6%. |
| Noninterest expense | $37.8 million | $42.2 million (includes a $6.4 million pension settlement charge) | –10.5% reported; adjusted noninterest expense increased about 5.6%. |
| Net income | $12.6 million | $12.2 million | +3.5% (higher NII and lower reported noninterest expense offset lower noninterest income and higher provisions) |
(Operating expenses as presented include several non‑GAAP adjustments; the core trend is modestly higher underlying cost base, especially salaries and benefits, offset by the absence of 2025’s pension settlement and lower FDIC costs.)
Historical Performance of Selected Regional Peers
Direct competitor Q1 2026 data are not included in Washington Trust’s release; however, regional bank peers with similar community/regional banking profiles face comparable pressures from funding costs, credit quality, and regulatory capital. Because full Q1 2026 peer financial statements are not provided in the supplied materials, the table below remains illustrative rather than company‑specific.
| Category | Q1 2026 (Peers, illustrative) | Q1 2025 (Peers, illustrative) | Change (%) |
| Revenue | Many regional peers are expected to show low‑single‑digit revenue growth or slight declines as lower asset yields and slower loan growth offset prior rate benefits. | Revenue growth in mid‑single digits in 2025, supported by earlier rate hikes and loan expansion. | Typically trending from mid‑single‑digit growth toward flat to slightly negative, reflecting normalization in margins and cautious lending. |
| Net income | Peer net income trajectories vary, with some banks reporting higher EPS on improved credit trends, while others see declines from higher deposit costs and credit normalization. | Generally stronger EPS growth in 2025, benefitting from earlier rate leverage and still‑benign credit conditions. | Mixed; several peers are now experiencing EPS deceleration as credit costs rise and margin expansion fades. |
| Operating expenses | Many peers continue to see mid‑single‑digit underlying expense growth driven by wage inflation, technology investment, and regulatory/compliance costs. | Similar or slightly lower expense growth rates in 2025, before additional regulatory and technology investments accelerated. | Expense growth is stable to slightly higher, prompting renewed cost‑control efforts and efficiency initiatives across the regional bank sector. |
How the Market Reacted?
The company’s press release does not disclose intraday or after‑hours stock price moves for Washington Trust Bancorp on April 20, 2026. Recent external coverage suggests investor sentiment is cautious, focusing on higher provisions, rising nonaccrual commercial real estate loans, and modest sequential earnings pressure despite improved margins. At the same time, strong capital ratios, stable dividends, and growing wealth management and mortgage banking revenues provide offsets that may support longer‑term investor confidence. Overall, the tone of the report and commentary appears guardedly constructive, with management emphasizing franchise strength but acknowledging a more challenging credit environment.