Washington Trust Bancorp, Inc. reported unaudited financial results for the third quarter of 2026, disclosing a net income of $19.4 million. This figure represents a $3.4 million increase, or a 21% rise, compared to the preceding quarter. Diluted earnings per share for the quarter were $1.01, an increase of $0.18 from the prior quarter.
The company reported a net interest margin of 2.84%, expanding by 11 basis points. Net interest income for the quarter totaled $44.7 million, up $2.9 million, or 7%, from the second quarter. This increase was attributed to a $104 million rise in average interest-earning assets and a 7 basis point increase in the yield on those assets.
Noninterest income increased by 9% to $15.4 million. This growth was driven by a $1.5 million increase in loan-related derivative income and a $959,000 increase in income from bank-owned life insurance, which included a non-taxable gain of $954,000. Conversely, mortgage banking revenues decreased by $318,000, or 9%, due to a decline in the mortgage pipeline and rising market interest rates.
Asset quality metrics improved during the quarter. Nonaccrual loans decreased to $24.5 million, or 0.48% of total loans, down from 0.78% in the prior quarter. This improvement was driven by the resolution of a $22.3 million commercial real estate office loan that was previously on nonaccrual status. The loan was restructured, resulting in $18.5 million returning to accruing status and $3.8 million being charged off. The provision for credit losses was $1.8 million.
Deposits reached an all-time high of $5.4 billion, an increase of $77.1 million from June 30, 2026. Total loans increased by $61.8 million to $5.2 billion, driven by growth in the commercial real estate portfolio. The company’s common equity tier 1 capital ratio remained strong at 11.93%.
The Board of Directors declared a quarterly dividend of 56 cents per share, payable on October 9, 2026, to shareholders of record on October 1, 2026.
