Company expects full-year 2026 effective tax rate to be approximately 21.5%
Company sees permanent improvement to earnings and margin run rate from Q3 2026
Washington Trust expresses confidence in outlook for remainder of 2026
Overview
US community bank's Q2 net income and diluted EPS rose both sequentially and yr/yr
Net interest income grew 3% from Q1 and 12% yr/yr, aided by margin improvement
Loan balances rose 2% and deposits increased 4% from Q1, led by commercial lending
Result Drivers
Institutional banking - Growth in commercial and industrial loans and deposits was driven by the institutional banking team, per CEO Edward O. Handy III
Cash flow hedge amortization - Net interest income and margin benefited from the end of cash flow hedge amortization, adding $1.4 mln to net interest income and 9 basis points to NIM
Noninterest income - Wealth management revenues rose 5% and mortgage banking revenues increased 14%, driven by higher transaction-based fees and loan sales volume
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "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 $34.00, about 7.2% below its July 17 closing price of $36.62
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago
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