Washington Trust Q2 profit rises on higher net interest income

Washington Trust Bancorp

20/07/2026 21:22

    

    Overview
  
US community bank's Q2 net income and diluted EPS rose both sequentially and yr/yr
Net interest income grew 3% from Q1 and 12% yr/yr, aided by margin improvement
Loan balances rose 2% and deposits increased 4% from Q1, led by commercial lending

    

    Outlook
  
Company expects full-year 2026 effective tax rate to be approximately 21.5%
Company sees permanent improvement to earnings and margin run rate from Q3 2026
Washington Trust expresses confidence in outlook for remainder of 2026

    

    Result Drivers
  
INSTITUTIONAL BANKING - Growth in commercial and industrial loans and deposits was driven by the institutional banking team, per CEO Edward O. Handy III
CASH FLOW HEDGE AMORTIZATION - Net interest income and margin benefited from the end of cash flow hedge amortization, adding $1.4 mln to net interest income and 9 basis points to NIM
NONINTEREST INCOME - Wealth management revenues rose 5% and mortgage banking revenues increased 14%, driven by higher transaction-based fees and loan sales volume

    
Company press release: ID:nPn8x6LRHa

    

    Key Details
  

            Metric
          

            Beat/Miss
          

            Actual
          

            Consensus Estimate
          
Q2 EPS
 
$0.83
 
Q2 Net Income
 
$15.98 mln
 
Q2 Net Interest Income
 
$41.8 mln
 
Q2 Credit Loss Provision
 
$1.6 mln
 

    

    Analyst Coverage
  
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the banks peer group is "buy."
Wall Street's median 12-month price target for Washington Trust Bancorp Inc is $34.00, about 7.2% below its July 17 closing price of $36.62
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago

    

    Reuters Recommended Reads
  
July 20 - MainStreet Bancshares Q2 profit rises on higher interest margin
July 20 - Peoples Bancorp of North Carolina Q2 net interest income rises 
July 17 - Hingham Institution for Savings Q2 net income more than doubles on higher loan yields, lower funding costs

    
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)