Washington Trust Bancorp Q3 net income rises sequentially on higher net interest income

By Reuters News


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


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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