#USA #earnings report #Washington Trust #Westerly, RI #Q3 2026

Washington Trust Bancorp's Thriving Q3 2026 Financial Results

On October 19, 2026, Washington Trust Bancorp, Inc. (Nasdaq: WASH) announced its financial performance for the third quarter of 2026, revealing a substantial rise in its net income to $19.4 million. This represents an impressive increase of $3.4 million, or 21%, compared to the previous quarter. The diluted earnings per share also saw a positive trend, reaching $1.01 for this quarter, up by $0.18 from the preceding quarter and by $0.45 year-over-year.

Edward O. ``Ned`` Handy III, the Chairman and CEO of Washington Trust, expressed enthusiasm about their growth trajectory. "We continue to combine personalized service with the capabilities of a regional bank, setting ourselves apart from competitors of our size," he stated. This strategic approach has led to improvements in profitability and operating efficiency, indicating that the bank remains intent on supporting sustained and prudent growth while focusing on shareholder value.

Key Highlights of Q3 2026 Results

• - Growth in Profitability Metrics: The bank recorded a return on average equity of 13.89%, up from 11.61% in Q2 2026, along with an increase in return on average assets to 1.17% from 0.99%. This improved performance aligns with expanding net interest income, which grew by 7% to reach $44.7 million for Q3.
• - Net Interest Margin Expansion: The net interest margin (NIM) also showed positive movements, increasing by 11 basis points to reach 2.84%.
• - Asset Quality Improvements: The bank has achieved better asset quality, notably with a decline in nonaccrual loans from $39.8 million to $24.5 million.
• - Increased Loan and Deposit Balances: Washington Trust's loan balances rose significantly by $61.8 million since June 30, reaching $5.2 billion. Total deposits climbed to an all-time high of $5.4 billion, showcasing a rise of $77.1 million during the same period.

A Detailed View of Income and Expenses

The report also highlighted the growth in noninterest income, which increased by 9% to $20.3 million. The revenue strength was attributed to various sectors, including an increase in wealth management revenues and bank-owned life insurance income. Despite noninterest expenses rising modestly by 0.5%, the overall efficiency ratio improved to 59.7% compared to the previous quarter.

The bank's income tax expense increased by $692 thousand, positioning the effective tax rate at 20.4%. Washington Trust anticipates its full-year 2026 effective tax rate to be approximately 21.5%.

The Forward-Looking Strategy

The sustained growth in net income, improved asset quality, and the continued segment focus on personalized banking services suggest that Washington Trust Bancorp is poised for further success. The leadership plans to leverage their competitive advantages and operational capabilities to bolster growth and enhance shareholder value.

Conference Call and Company Background

To share more insights about their quarterly results and future outlook, Washington Trust will conduct a conference call on October 20, 2026, at 8:30 a.m. ET. Interested individuals can dial in using the provided details for an in-depth discussion.

Founded in 1800, Washington Trust is recognized as the oldest community bank in the United States and remains one of the foremost financial service providers in the Northeast, offering a broad array of banking and wealth management services to its customers across Rhode Island, Connecticut, and Massachusetts. The company’s stock is publicly traded on NASDAQ under the ticker WASH, and additional investor information can be accessed through their official website.