Washington Bancorp (WT1) Q3 2026 Earnings Report
DE:WT1 Q3 2026 EPS Results
- Actual EPS
- EUR 0.90
- Consensus EPS
- EUR 0.78
- Beat/Miss
- Beat by +EUR 0.12
- One Year Ago EPS
- EUR 0.50
DE:WT1 Q3 2026 Revenue Results
- Actual Revenue
- EUR 86.75M
- Expected Revenue
- EUR 55.91M
- Beat/Miss
- Beat by +EUR 30.84M
- YoY Revenue Growth
- -0.95%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/19/2026
- Time
- After Close
- Conference Call
- Monday, October 19, 2026
Washington Bancorp's next earnings date is estimated for January 27, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
Q3 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q3 2026 Earnings Call Summary
The call was broadly positive, with strong earnings, net interest income, margin, deposit, commercial loan, and asset-quality performance, alongside branch expansion and continued investment in the business. The main challenges were declines in mortgage banking revenue, competitive pressure on CRE spreads, higher upcoming expenses, a new non-performing loan, ongoing lab-property resolution work, and GAAP capital ratios that remain lighter than peers.
Management guided to a Q4 margin range of 285-290, with guidance including just the September rate hike, and said each 25 basis point hike probably gives 1-2 basis points on the run rate; full year 2026 tax rate is expected to be approximately 21.5%. Q4 expenses are expected to increase about $1.5 million, plus the annual $750,000 contribution to the charitable foundation, implying about $41 million including the charitable foundation of $750,000; the ongoing run rate for a branch is around $750,000-$800,000 a year. Management is looking at annualized total portfolio growth of 5%, within the commercial book about 10%, and a target range of 2%-3% quarterly commercial growth, averaging out to about 10% annualized growth, while maintaining deposit growth in the neighborhood of loan growth.
- Strong Third-Quarter Earnings GrowthThird-quarter net income was $19.4 million, or $1.01 per share, up $3.4 million or $0.18 from the preceding quarter.
- PPNR Growth and Improved Operating EfficiencyPre-provision pre-tax net revenue increased 20% from Q2 and 26% year-over-year. Management also reported improved operating efficiency, while non-interest expense increased only $200,000, or 0.5%, to $38.8 million.
- Net Interest Income and Margin ExpansionNet interest income was $44.7 million, up 7% from Q2 and 15% year-over-year. Net interest margin was 284 basis points, up 11 basis points from Q2 and 44 basis points year-over-year. The quarter included $283,000 of second-quarter interest income from a loan returned to accrual, benefiting NIM by about 2 basis points.
- Positive Margin OutlookThe company revised its fourth-quarter NIM guidance to a range of 285-290 basis points. Management said the company remains modestly asset sensitive and that each 25-basis-point rate hike probably provides 1-2 basis points of run-rate benefit. A terminated swap is also expected to provide a 4-basis-point benefit.
- Non-Interest Income GrowthNon-interest income increased $1.6 million, or 9%, from Q2 and 15% year-over-year. Loan-related derivative income increased $924,000, and bank-owned life insurance income increased largely because of a recognized $954,000 gain in the quarter.
- Deposit Growth and Funding PositionDeposits increased $77 million, or 1%, from the end of Q2 and $213 million, or 4%, year-over-year. Non-interest-bearing deposit growth was attributed primarily to the institutional banking team onboarding operating accounts, along with an across-the-board retail and commercial deposit-gathering approach. Wholesale funding declined $80 million, or 18%, from the end of June, and the loan-to-deposit ratio was below 95%.
- Commercial Loan GrowthTotal loans increased 1% from June 30, while total commercial loans increased $62 million, or 2.3%, driven by growth in the CRE portfolio. Management said quarterly commercial growth of 2%-3% is within its target range and is looking for about 10% annualized growth in the commercial book.
- Loan Pipeline Weighted Toward Commercial LendingThe loan pipeline was approximately $230 million as of September 30 and was weighted toward C&I, including about $40 million in the institutional group. The company also completed a $10 million New England school deal during the third quarter.
- Residential Portfolio Reinvestment TailwindManagement said the $2 billion residential loan book is providing a tailwind of about 1-2 basis points per quarter as it amortizes and the cash flows are reinvested.
- Improved Asset and Credit QualityNon-accrual loans declined to 48 basis points of total loans from 78 basis points, and past-due loans declined to 54 basis points from 81 basis points at the end of Q2. The improvement was largely driven by the resolution of a $22.3 million office loan, with $18.5 million returned to accrual and $3.8 million charged off.
- Strong Capital Position Supports GrowthManagement said its capital position remains strong and supports prudent growth. Regulatory capital ratios were described as fine, and the company plans to retain capital to support balance-sheet and loan growth rather than repurchase shares.
- Rhode Island Branch ExpansionWashington Trust is expanding its Rhode Island presence with two new branches expected to open around the end of the quarter. Management said the locations will provide advice, comprehensive solutions, convenience, and personalized service.
- Targeted Strategic InvestmentsThe company is making targeted investments in new branches, marketing, technology, and personnel. Management said the approximately $1.5 million fourth-quarter expense increase is evenly distributed across those areas, excluding the annual $750,000 charitable foundation contribution.
- Positive Trends in $28 Million Lab PropertyThe $28 million lab-space property is 95% leased, and management said all trends have been positive. The company is feeling reasonably good about a near-term move out of special mention, although it is waiting for quarter-end rent-payment information before committing to that timing.
- Full-Year Tax Rate OutlookThe third-quarter effective tax rate was 20.4%, and management expects the full-year 2026 tax rate to be approximately 21.5%.
DE:WT1 Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Jan 27, 2027 | 2026 (Q4) | 0.78- | 0.74 | ― | ― |
| Oct 19, 2026 | 2026 (Q3) | 0.780.90 | 0.5 | 80.36% (+0.40) | |
| Jul 20, 2026 | 2026 (Q2) | 0.690.74 | 0.61 | 22.06% (+0.13) | |
| Apr 20, 2026 | 2026 (Q1) | 0.680.59 | 0.56 | 4.76% (+0.03) | |
| Jan 28, 2026 | 2025 (Q4) | 0.670.74 | -3.09 | 123.99% (+3.83) | |
| Oct 20, 2025 | 2025 (Q3) | 0.410.50 | 0.57 | -12.50% (-0.07) | |
| Jul 21, 2025 | 2025 (Q2) | 0.570.61 | 0.56 | 7.94% (+0.04) | |
| Apr 21, 2025 | 2025 (Q1) | 0.560.56 | 0.57 | -1.56% (-0.01) | |
| Jan 29, 2025 | 2024 (Q4) | 0.52-3.09 | 0.68 | -555.26% (-3.77) | |
| Oct 21, 2024 | 2024 (Q3) | 0.500.57 | 0.58 | -1.54% (-0.01) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.