Washington Trust Bancorp Reports $16 Million Net Income for Q2 2026

The Rhode Island-based financial institution saw its net interest margin climb to 2.73%, an improvement of 10 basis points over the first quarter. Executives attributed this gain largely to the full amortization of deferred losses from a previously terminated cash flow hedge, which provided a structural boost to the bank's earnings run rate starting in May. Wealth management and mortgage banking also contributed to the positive results, with revenues in these segments rising by 5% and 14%, respectively.

Loan balances grew by 2% to reach $5.1 billion, driven primarily by the institutional banking team's performance in the commercial and industrial sector. Deposits also saw a 4% increase, totaling $5.4 billion by the end of June. Chairman and CEO Edward O. Handy III expressed confidence in the remainder of the year, noting that the corporation’s strong capital position—highlighted by a common equity tier 1 ratio of 11.89%—provides a stable foundation for ongoing, profitable growth throughout 2026.