It recorded a top-line beat too.
Quarter-over-quarter growth in loans and deposits wasn't as impressive, though.
Investors clearly expressed their trust in Washington Trust Bancorp (NASDAQ:WASH) on the second trading day of the week. That wasn't hard to do, as the regional bank published quarterly results that beat analyst estimates, especially on the bottom line. Such a performance was rewarded by a more than 4% gain for Washington Trust's stock on Tuesday.
After market close Monday, Washington Trust took the wraps off its third-quarter figures. All told, its revenue was a shade under $65 million for the period, up 15% year over year. Net income under generally accepted accounting principles (GAAP) nearly doubled, to $19.4 million from $10.8 million in the year-ago period. On a non-GAAP (adjusted), per-share basis, the bank netted $2.50 per share, well up from third quarter 2025's $1.88.
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Both figures topped the consensus analyst estimates. The collective projection for total revenue was under $62.9 million, while that for adjusted profitability was only $0.87 per share.
While Washington Trust did a decent job boosting its net interest income (a critical line item for banks), if I were a shareholder, I'd be a bit concerned that both deposits and loans inched up by only 1% sequentially. There's only so much growth to be had for a lender that can't meaningfully increase either, so I'd be a bit cautious with this bank's stock these days.
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.