Washington Trust reported second-quarter 2026 net income of $15.98 million, or $0.83 per diluted share, up versus both the prior quarter and year-ago quarter. Net interest income was $41.80 million with a net interest margin of 2.73%, supported by the cessation of a deferred hedge amortization that added about $1.4 million to NII in Q2. The company posted loan and deposit growth quarter-over-quarter and maintained a strong CET1 ratio of 11.89% at June 30, 2026.

Financial Highlights

  • Net income: $15.98 million for Q2 2026, up $3.38 million (26.8%) from Q1 2026 and up $2.74 million (20.7%) from Q2 2025.
  • Diluted earnings per share: $0.83 for Q2 2026 (basic $0.84).
  • Net interest income: $41.803 million in Q2 2026; net interest margin (NIM) 2.73%, up 10 bps from Q1 2026.
  • Provision for credit losses: $1.6 million in Q2 2026 (compared with $4.0 million in Q1 2026); net charge-offs of $55 thousand in Q2.
  • Capital & dividends: Common equity tier 1 ratio 11.89% at June 30, 2026; Board declared quarterly dividend of $0.56 per share (paid July 10, 2026).

Business Highlights

  • Loan growth: Total loans rose to $5.103 billion at June 30, 2026, a 2% increase from March 31, 2026, driven by a $63 million increase in commercial loans (notably commercial & industrial) and modest growth in residential and consumer loan balances.
  • Deposit trends: Total deposits increased to $5.359 billion at June 30, 2026, up $194 million (4%) sequentially and $314 million (6%) year-over-year; no wholesale brokered deposits at period end.
  • Institutional banking impact: Institutional banking team contributed meaningfully to commercial & industrial loan growth and to deposit inflows during the quarter.
  • Wealth & mortgage business momentum: Wealth management revenues increased 5% sequentially ($11.201 million Q2), with asset-based and transaction-based gains; mortgage banking revenues rose 14% sequentially ($3.473 million) driven by higher sales volume.
  • Liquidity posture: Contingent liquidity totaled $2.1 billion at June 30, 2026, comprising available cash, unencumbered securities and unused collateralized borrowing capacity; FHLB advances were reduced to $456 million (down $120 million sequentially).

Original SEC Filing:

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