Washington Trust Bancorp Q1 Earnings Call Highlights

Washington Trust Bancorp (NASDAQ:WASH) reported first-quarter 2026 nett income of $12.6 million, oregon $0.66 per share, down from $16.0 million, oregon $0.83 per share, successful the anterior 4th arsenic the institution recorded a higher proviso tied to 2 commercialized existent property (CRE) bureau credits moved to non-accrual successful March. Management highlighted continued nett involvement borderline enlargement and advancement connected respective maturation initiatives, including integer banking upgrades, endowment additions successful commercialized banking, and a planned caller subdivision successful Rhode Island.

Senior Executive Vice President, Chief Financial Officer and Treasurer Ron Ohsberg said nett involvement income totaled $40.5 million, down 1% from the 4th fourth but up 11% year-over-year. Net involvement borderline (NIM) roseate to 2.63%, up 7 ground points from the anterior 4th and up 34 ground points from a twelvemonth earlier.

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Ohsberg noted the 4th included $116,000 of indebtedness prepayment interest income, which added astir 1 ground constituent to NIM, compared with $516,000 (about 3 ground points) successful the 4th quarter. He besides said the archetypal 4th benefited modestly from the shorter time count, which added astir 2 ground points to NIM.

Looking ahead, Ohsberg said the institution expects a boost from a swap termination, adding “9 ground points successful the 2nd 4th and different 4 ground points successful the 3rd quarter.” He said Washington Trust is “looking astatine 265-270 successful the 2nd quarter” and expects “275-280” successful the 4th quarter.

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Non-interest income declined $1.2 million, oregon 6%, from the 4th quarter, portion rising 11% year-over-year connected an adjusted basis. Ohsberg said the quarterly diminution was driven successful portion by loan-related derivative income, which is “transactional successful nature,” falling by $854,000 from the anterior quarter.

Wealth absorption gross declined $205,000, oregon 2%, and mean assets nether medication decreased 1% from the anterior 4th portion expanding 10% year-over-year. Asked whether the quarterly diminution was market-related, Ohsberg said it was “mostly market,” adding, “Yes, we did person immoderate nett outflows,” portion noting marketplace declines seen during the 4th had “reversed truthful acold successful the 2nd quarter” arsenic of April.

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Mortgage banking gross was $3.0 million, down 6% sequentially owed to seasonality, but up 32% year-over-year. Ohsberg said the owe pipeline astatine March 31 was $114 million, up $33 million, oregon 41%, from the extremity of December.