Washington Trust Bancorp: An Upgrade Isn't In The Cards Right Now

Washington Trust Bancorp, Inc. remains rated Hold due to concerns over asset and credit quality and valuation not justifying a bullish stance. Deposit and loan balances declined in Q1 2026 amid competitive pressures, with uninsured deposits at 22%—below the 30% threshold of concern. Profitability improved as net interest margin rose to 2.63%, but return on assets (0.78%) and equity (9.23%) lagged preferred benchmarks. Forward P/E of 13.6 and rising non-performing assets limit WASH upside, despite analyst expectations for modest revenue and EPS growth.

Back in early February of this year, I briefly considered upgrading Washington Trust Bancorp, Inc. ( WASH ) from a Hold to a Buy. However, upon looking more closely at the business, I could not bring