Regional bank Washington Trust Bancorp (NASDAQ: WASH) fell short of the market’s revenue expectations in Q1 CY2026, but sales rose 10.6% year on year to $57.83 million. Its non-GAAP profit of $0.66 per share was 13% below analysts’ consensus estimates.
Is now the time to buy Washington Trust Bancorp? Find out by accessing our full research report, it’s free.
Washington Trust Bancorp (WASH) Q1 CY2026 Highlights:
- Net Interest Income: $40.53 million vs analyst estimates of $40.75 million (11.3% year-on-year growth, 0.5% miss)
- Net Interest Margin: 2.6% vs analyst estimates of 2.6% (5.3 basis point beat)
- Revenue: $57.83 million vs analyst estimates of $58.79 million (10.6% year-on-year growth, 1.6% miss)
- Adjusted EPS: $0.66 vs analyst expectations of $0.76 (13% miss)
- Tangible Book Value per Share: $25.14 vs analyst estimates of $25.25 (6.5% year-on-year growth, in line)
- Market Capitalization: $684.9 million
Company Overview
Founded in 1800 and operating as Rhode Island's oldest community bank, Washington Trust Bancorp (NASDAQ: WASH) is a regional bank holding company offering commercial banking, mortgage lending, personal banking, and wealth management services.
Sales Growth
Two primary revenue streams drive bank earnings. While net interest income, which is earned by charging higher rates on loans than paid on deposits, forms the foundation, fee-based services across banking, credit, wealth management, and trading operations provide additional income. Unfortunately, Washington Trust Bancorp struggled to consistently increase demand as its $228.5 million of revenue for the trailing 12 months was close to its revenue five years ago. This was below our standards and suggests it’s a low quality business.
We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. Washington Trust Bancorp’s annualized revenue growth of 9.6% over the last two years is above its five-year trend, which is encouraging. 
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, Washington Trust Bancorp’s revenue grew by 10.6% year on year to $57.83 million but fell short of Wall Street’s estimates.
Net interest income made up 68.5% of the company’s total revenue during the last five years, meaning lending operations are Washington Trust Bancorp’s largest source of revenue.
Our experience and research show the market cares primarily about a bank’s net interest income growth as non-interest income is considered a lower-quality and non-recurring revenue source.
ONE MORE THING: The $21 AI Application Stock Wall Street Forgot. While Wall Street obsesses over who’s building AI, one company is already using it to print money. And nobody’s paying attention.
AI chip stocks trade at ridiculous valuations. This company processes a trillion consumer signals monthly using AI and trades at a third of the price. The gap won’t last. The institutions will figure it out. You need to see this first. Read the FREE Report Before They Notice.
Tangible Book Value Per Share (TBVPS)
Banks profit by intermediating between depositors and borrowers, making them fundamentally balance sheet-driven enterprises. Market participants emphasize balance sheet quality and sustained book value growth when evaluating these institutions.
This explains why tangible book value per share (TBVPS) stands as the premier banking metric. TBVPS strips away questionable intangible assets, revealing concrete per-share net worth that investors can trust. Traditional metrics like EPS are helpful but face distortion from M&A activity and loan loss accounting rules.
Washington Trust Bancorp’s TBVPS declined at a 1.3% annual clip over the last five years. However, TBVPS growth has accelerated recently, growing by 3.5% annually over the last two years from $23.45 to $25.14 per share.
Over the next 12 months, Consensus estimates call for Washington Trust Bancorp’s TBVPS to grow by 6.9% to $26.87, lousy growth rate.
Key Takeaways from Washington Trust Bancorp’s Q1 Results
We struggled to find many positives in these results. Its EPS missed and its revenue fell short of Wall Street’s estimates. Overall, this quarter could have been better. The stock traded down 5.7% to $34.02 immediately after reporting.
The latest quarter from Washington Trust Bancorp’s wasn’t that good. One earnings report doesn’t define a company’s quality, though, so let’s explore whether the stock is a buy at the current price. The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).
