Washington Trust Bancorp Q3 net income rises sequentially on higher net interest income
Overview
US regional bank's Q3 net income and EPS rose both sequentially and yr/yr
Net interest income for Q3 rose 7% sequentially and 15% yr/yr
Asset quality improved after resolution of commercial real estate loan
Outlook
Company expects full-year 2026 effective tax rate to be about 21.5%
Result Drivers
NET INTEREST INCOME - Growth in net interest income was aided by higher net interest margin and recognition of previously unrecognized interest from a resolved commercial real estate loan
ASSET QUALITY - Improvement in asset quality was driven by the resolution and restructuring of a previously nonaccrual commercial real estate loan
NONINTEREST INCOME - Higher noninterest income was supported by increased loan-related derivative income and a gain on bank-owned life insurance
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 EPS | $1.01 | ||
Q3 Net Income | $19.38 mln | ||
Q3 Net Interest Income | $44.69 mln | ||
Q3 Credit Loss Provision | $1.80 mln |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 4 "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 $36.00, about 2.9% below its October 16 closing price of $37.06
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago
Reuters Recommended Reads
Oct 19 - Fifth Third Bancorp Q3 net interest income jumps on Comerica acquisition
Oct 19 - Peoples Bancorp of North Carolina Q3 net earnings rise on loan growth
Oct 16 - Hingham Institution for Savings Q3 net income falls; net interest margin increases
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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.)