Washington Trust Bancorp Reports $12.6 Million Net Income in Q1 2026

Washington Trust Bancorp, Inc. reported a net income of $12.6 million for the first quarter of 2026, reflecting a 3% increase from $12.2 million in the same period of 2025. This growth was primarily driven by an increase in net interest income, which rose by 11% to $40.5 million, compared to $36.4 million a year earlier. The bank's total revenues decreased slightly to $57.8 million from $59.1 million, largely due to a significant drop in noninterest income, which fell 24% to $17.3 million, impacted by the absence of a $7 million gain from sale-leaseback transactions recorded in the previous year.

In terms of operational metrics, Washington Trust's total loans decreased by 2% to $5.0 billion, down from $5.1 billion at the end of 2025. The allowance for credit losses on loans increased by 10% to $41.1 million, reflecting heightened provisions due to specific reserves on two nonaccrual commercial real estate loans. The bank's nonaccrual loans surged to $40.4 million, up from $12.9 million at the end of 2025, indicating a significant rise in credit risk. The total past due loans also increased to $16.4 million, compared to $11.4 million in the previous quarter.

Washington Trust's deposit base saw a decline of 2%, totaling $5.2 billion as of March 31, 2026, down from $5.3 billion at the end of 2025. The bank's noninterest-bearing deposits decreased by 2%, while interest-bearing deposits also saw a slight decline. The bank continues to focus on maintaining its existing depositor relationships and supporting organic deposit growth amid strong competition in the market.

Strategically, Washington Trust has been active in managing its capital structure, with total shareholders' equity increasing to $546.8 million, up from $543.6 million at the end of 2025. The bank declared a quarterly dividend of $0.56 per share, consistent with the previous year. The bank's capital ratios remain strong, with a total risk-based capital ratio of 13.38%, indicating that it is well-capitalized according to regulatory standards.

Looking ahead, Washington Trust anticipates continued challenges in the economic environment, particularly concerning credit quality and interest rate fluctuations. The bank's management remains focused on leveraging its regional brand to enhance market share while navigating the complexities of the current financial landscape.