Washington Trust Bancorp Reports 21% Net Income Increase in Q2 2026

Washington Trust Bancorp, Inc. reported its financial results for the second quarter of 2026, revealing a net income of $15.98 million, a 21% increase from $13.25 million in the same period last year. For the first half of 2026, net income reached $28.58 million, up 12% from $25.42 million in the prior year. The company’s earnings per share for the quarter were $0.84, compared to $0.69 in the previous year, while diluted earnings per share were $0.83, up from $0.68. The increase in profitability was attributed to a rise in net interest income, which totaled $41.80 million for the quarter, a 12% increase from $37.19 million in Q2 2025.

Total revenues for the second quarter were $60.47 million, reflecting an 11% increase from $54.26 million in the prior year. The growth in revenue was driven by a 9% increase in noninterest income, which amounted to $18.66 million, compared to $17.08 million in the same quarter of 2025. However, noninterest income for the first half of 2026 decreased by 9% to $35.97 million, primarily due to the absence of a significant gain on the sale of bank-owned properties that was recorded in the previous year.

In terms of operational metrics, Washington Trust's total loans decreased slightly to $5.10 billion as of June 30, 2026, down from $5.13 billion at the end of 2025. The allowance for credit losses on loans increased to $42.57 million, representing 0.83% of total loans, compared to 0.73% at the end of the previous year. The increase in the allowance was largely due to specific reserve allocations on two nonaccrual commercial real estate loans. The company also reported a rise in nonaccrual loans, which totaled $39.82 million, up from $12.92 million at the end of 2025.

Washington Trust's total assets decreased to $6.55 billion from $6.62 billion at the end of 2025, while total deposits increased by 2% to $5.36 billion. The bank's capital position remained strong, with total shareholders' equity rising to $553.52 million, up from $543.58 million at the end of the previous year. The company declared a quarterly dividend of $0.56 per share, consistent with the previous year, and maintained a well-capitalized status under regulatory requirements.

Looking ahead, Washington Trust plans to open two new full-service branches in Rhode Island later in 2026, aiming to enhance its market presence and customer service capabilities. The bank continues to focus on leveraging its regional brand to build market share while adapting to changing economic conditions and customer needs.