WESTERLY, R.I., Jan. 29, 2025 /PRNewswire/ -- Washington Trust Bancorp, Inc. (the "Corporation") (NASDAQ:WASH), parent company of The Washington Trust Company (the "Bank"), today reported a fourth quarter 2024 net loss of $60.8 million, or a $3.46 loss per diluted share. Excluding the impact of the balance sheet repositioning sale transactions described below, adjusted net income (non-GAAP) for the fourth quarter totaled $10.4 million, or $0.59 per diluted share, compared to net income of $11.0 million, or $0.64 per diluted share, for the third quarter of 2024.
As previously announced, on December 16, 2024, the Corporation completed an underwritten public offering of 2,198,528 shares of its common stock at a public offering price of $34.00 per share. The net proceeds from the offering were approximately $70.5 million.
On December 20, 2024, the Corporation announced the execution of balance sheet repositioning transactions to support continued organic growth and capital generation. The Bank sold available for sale debt securities with an amortized cost balance of $409 million (fair value of $378 million) and a weighted average yield of 2.65% and reinvested $378 million into purchases of available for sale debt securities with a weighted average yield of 5.30%. The sale of debt securities resulted in a net pre-tax realized loss of $31.0 million (after-tax of $23.5 million) that was recognized in the fourth quarter of 2024.
Pursuant to the terms of a sales agreement effective December 30, 2024, the Bank committed to sell residential mortgage loans with an amortized cost balance of $345 million and a weighted average rate of approximately 3.02%. These loans were reclassified to held for sale and written down to a fair value of $282 million, resulting in a net pre-tax loss of $62.9 million (after-tax of $47.7 million) that was recognized in the fourth quarter of 2024. The sale of these loans was completed on January 24, 2025. The net proceeds received from the equity offering were used, and the proceeds from the loan sale will be used, to pay down wholesale funding balances.
"Washington Trust's 2024 results reflect the strategic actions we took in December to reposition our balance sheet," stated Edward O. Handy III, Washington Trust Chairman and Chief Executive Officer. "Though the sales resulted in a loss recognized in the fourth quarter, the equity offering and repositioning will favorably impact future revenues and provide additional capacity for growth and investment. This strategy has further strengthened our financial foundation, allowing us to focus on providing enhanced value for our shareholders, as well as the customers and communities we serve."
For the full-year ended 2024, the Corporation reported a net loss of $28.1 million, or a loss per diluted share of $1.63, compared to net income of $48.2 million, or earnings per diluted share of $2.82, reported for the prior year. In addition to the losses recognized on the sale transactions mentioned above, noninterest income included the receipt of a $2.1 million ($1.6 million after-tax) litigation settlement in the first quarter of 2024 and a gain of $988 thousand ($739 thousand after-tax) on the sale of a bank-owned operations facility in the second quarter of 2024. Additionally, in 2023, a state legislative tax change resulted in a reduction in income tax expense of $3.3 million. Excluding these items, full-year 2024 adjusted net income (non-GAAP) was $40.9 million, or $2.37 per diluted share, compared to adjusted net income (non-GAAP) of $44.9 million, or $2.63 per diluted share, reported for the prior year.
Other selected financial highlights for the fourth quarter and full-year 2024 include:
- The net interest margin was 1.95% in the fourth quarter, up by 10 basis points from the 1.85% reported in the preceding quarter. Full-year net interest margin for 2024 was 1.87%, down by 18 basis points from the 2.05% reported in the prior year.
- A provision for credit losses of $1.0 million was recognized for the fourth quarter, up by $800 thousand from the third quarter. The provision for credit losses in 2024 totaled $2.4 million, compared to $3.2 million recognized in the prior year.
- Wealth management revenues in the fourth quarter increased by 1% from the preceding quarter. End of period assets under administration ("AUA") totaled $7.1 billion, up by 0.4% from September 30, 2024 and up by 7% from December 31, 2023.
- Mortgage banking revenues in the fourth quarter decreased by 1% from the preceding quarter. Full-year 2024 mortgage banking revenues were $11.0 million, up by 65% from the same period in the prior year.
- Total loans amounted to $5.1 billion, down by 7% from September 30, 2024 and down by $510 million, or 9%, from December 31, 2023, largely due to the reclassification of residential mortgage loans to held for sale in connection with the balance sheet repositioning transactions.
- In-market deposits (total deposits less wholesale brokered deposits) amounted to $4.8 billion, up by 1% from September 30, 2024 and up by 3% from December 31, 2023.
Net Interest Income
Net interest income was $32.9 million for the fourth quarter of 2024, up by $674 thousand, or 2%, from the third quarter of 2024. The net interest margin was 1.95% for the fourth quarter, an increase of 10 basis points from the preceding quarter. This improvement reflected the partial impact on the quarter of the December balance sheet repositioning transactions, and the net effect of lower market rates on deposits, wholesale funds, and variable rate loans. Linked quarter changes included:
- Average interest-earning assets decreased by $235 million, reflecting a decline of $119 million in deposits at correspondent banks, as well as decreases in loans and securities. The yield on interest-earning assets for the fourth quarter was 4.83%, down by 16 basis points from the preceding quarter.
- Average interest-bearing liabilities decreased by $251 million, as in-market deposits increased by $96 million while wholesale funding balances decreased by $347 million. The cost of interest-bearing liabilities for the fourth quarter of 2024 was 3.41%, down by 29 basis points from the preceding quarter.
Noninterest Income
Noninterest income was a loss of $77.9 million for the fourth quarter of 2024, compared to income of $16.3 million in the third quarter of 2024. Included in noninterest income in the fourth quarter of 2024 was a pre-tax loss of $93.9 million recognized on the aforementioned balance sheet repositioning sale transactions. Adjusted noninterest income (non-GAAP) was $16.0 million, down by $229 thousand, or 1%, from the preceding quarter. Our two largest sources of noninterest income are discussed below:
- Wealth management revenues amounted to $10.0 million in the fourth quarter of 2024, up by $60 thousand, or 1%, from the preceding quarter. This included an increase in asset-based revenues of $140 thousand, or 1%, which was partially offset by a decrease in transaction-based revenues of $80 thousand, or 37%. The end of period AUA balance at December 31, 2024 amounted to $7.1 billion, up by $25 million, or 0.4%, from September 30, 2024.
- Mortgage banking revenues totaled $2.8 million for the fourth quarter of 2024, down by $18 thousand, or 1%, from the preceding quarter. Loans sold amounted to $113.1 million in the fourth quarter of 2024, down by $7.2 million, or 6%, from the third quarter of 2024. In the fourth quarter of 2024, 88% of residential real estate loan originations were originated for sale, compared to 81% in the preceding quarter.
Noninterest Expense
Noninterest expense totaled $34.3 million for the fourth quarter of 2024, down by $212 thousand, or 1%, from the third quarter of 2024. Salaries and employee benefits expense, our largest component of noninterest expense, amounted to $21.9 million, up by $525 thousand, or 2%, from the preceding quarter, largely reflecting adjustments to performance-based compensation accruals. The linked quarter increase in salaries and employee benefits expense was more than offset by a timing-related decline in advertising and promotion expense and other modest changes across a variety of expense categories.
Income Tax
For the fourth quarter of 2024, an income tax benefit of $19.5 million was recognized, reflecting an effective tax rate of 24.2%. Excluding the impact of the balance sheet repositioning sale transactions, adjusted income tax expense (non-GAAP) was $3.2 million, reflecting an adjusted effective tax rate (non-GAAP) of 23.7%, compared to income tax expense of $2.8 million, reflecting an effective tax rate of 20.6% in the preceding quarter. Based on current federal and applicable state income tax statutes, the Corporation currently expects its full-year 2025 effective tax rate to be approximately 22.5%.
Investment Securities
The securities portfolio totaled $916 million at December 31, 2024, down by $57 million, or 6%, from September 30, 2024. The linked quarter included the balance sheet repositioning securities transactions mentioned above and reflected a temporary decrease in the fair value of available for sale securities, as well as routine pay-downs on mortgage-backed debt securities. The securities portfolio represented 13% of total assets at December 31, 2024, compared to 14% of total assets at September 30, 2024.
Loans
Total loans amounted to $5.1 billion at December 31, 2024, down by $377 million, or 7%, from the end of the preceding quarter. These changes included:
- Residential real estate loans decreased by $403 million, or 16%, from September 30, 2024, largely reflecting the reclassification of $345 million to held for sale.
- Commercial loans increased by $29 million, or 1%, from September 30, 2024.
- Consumer loans decreased by $2 million, or 1%, from September 30, 2024.
Deposits and Borrowings
Total deposits amounted to $5.1 billion at December 31, 2024, down by $56 million, or 1%, from the end of the preceding quarter.
In-market deposits, which exclude wholesale brokered deposits, amounted to $4.8 billion at December 31, 2024, up by $26 million, or 1%, from September 30, 2024. As of December 31, 2024, in-market deposits were approximately 59% retail and 41% commercial. The average size of our in-market deposit accounts was approximately $37 thousand at December 31, 2024.
Wholesale brokered deposits amounted to $298 million and were down by $82 million, or 22%, from September 30, 2024. FHLB advances totaled $1.1 billion at December 31, 2024, down by $175 million, or 13%, from September 30, 2024. The linked quarter decrease reflected the use of excess cash liquidity and the net proceeds from the equity offering to pay down wholesale funding balances.
As of December 31, 2024, contingent liquidity amounted to $1.5 billion and consisted of available cash, unencumbered securities, and unused collateralized borrowing capacity.
Asset Quality
Nonaccrual loans were $23.3 million, or 0.45% of total loans, at December 31, 2024, compared to $31.1 million, or 0.56% of total loans, at September 30, 2024. The composition of nonaccrual loans at December 31, 2024 was 45% commercial and 55% residential and consumer. The net decrease in nonaccrual loans in the fourth quarter was largely attributable the resolution of one commercial real estate loan totaling $10.5 million, partially offset by another commercial real estate loan totaling $3.3 million that was placed on nonaccrual status.
Past due loans were $12.0 million, or 0.23% of total loans, at December 31, 2024, compared to $20.3 million, or 0.37% of total loans, at September 30, 2024. The composition of past due loans at December 31, 2024 was 8% commercial and 92% residential and consumer. The decrease in past due loans in the fourth quarter was largely due to the resolution of the commercial real estate loan noted above.
The allowance for credit losses ("ACL") on loans amounted to $42.0 million, or 0.82% of total loans, at December 31, 2024, compared to $42.6 million, or 0.77% of total loans, at September 30, 2024. The ACL on unfunded commitments, included in other liabilities on the Consolidated Balance Sheets, was $1.4 million at December 31, 2024, compared to $1.6 million at September 30, 2024.
The provision for credit losses totaled $1.0 million in the fourth quarter of 2024, up by $800 thousand from the preceding quarter, reflecting specific reserve allocations on individually analyzed nonaccrual commercial loans, partially offset by the decline in residential mortgage loan balances described above and relatively stable to improving forecasted economic conditions. Net charge-offs amounted to $1.9 million in the fourth quarter of 2024, compared to $48 thousand in the preceding quarter. The charge-offs recognized in the fourth quarter were concentrated in commercial real estate office portfolio segment.
Capital and Dividends
Total shareholders' equity was $499.7 million at December 31, 2024, down by $2.5 million, or 0.5%, from September 30, 2024. A net loss of $60.8 million, dividend declarations of $10.8 million, and a decrease of $2.0 million in the accumulated other comprehensive income ("AOCI") component of shareholders' equity were largely offset by $70.5 million of net capital raised from the equity offering.
The Board of Directors declared a quarterly dividend of 56 cents per share for the quarter ended December 31, 2024. The dividend was paid on January 15, 2025 to shareholders of record on January 2, 2025.
Capital levels at December 31, 2024 exceeded the regulatory minimum levels to be considered well capitalized, with a total risk-based capital ratio of 12.47% at December 31, 2024, compared to 12.21% at September 30, 2024. Book value per share was $25.93 at December 31, 2024, compared to $29.44 at September 30, 2024.
Conference Call
Washington Trust will host a conference call to discuss its fourth quarter results, business highlights, and outlook on Thursday, January 30, 2025 at 8:30 a.m. (Eastern Time). Individuals may dial in to the call at 1-833-470-1428 and enter Access Code 731757. An audio replay of the call will be available, shortly after the conclusion of the call, by dialing 1-866-813-9403 and entering the Replay Access Code 473209. The audio replay will be available through February 13, 2025. Also, a webcast of the call will be posted in the Investor Relations section of Washington Trust's website, https://ir.washtrust.com, and will be available through March 31, 2025.
Background
Washington Trust Bancorp, Inc. is the parent of The Washington Trust Company. Founded in 1800, Washington Trust is the oldest community bank in the nation, the largest state-chartered bank headquartered in Rhode Island and one of the Northeast's premier financial services companies. Washington Trust offers a full range of financial services, including commercial banking, mortgage banking, personal banking, and wealth management and trust services through its offices located in Rhode Island, Connecticut, and Massachusetts. The Corporation's common stock trades on NASDAQ under the symbol WASH. Investor information is available on the Corporation's website at https://ir.washtrust.com.
Forward-Looking Statements
This press release contains statements that are "forward-looking statements." We may also make forward-looking statements in other documents we file with the U.S. Securities and Exchange Commission ("SEC"), in our annual reports to shareholders, in press releases and other written materials, and in oral statements made by our officers, directors, or employees. You can identify forward-looking statements by the use of the words "believe," "expect," "anticipate," "intend," "estimate," "assume," "outlook," "will," "should," and other expressions that predict or indicate future events and trends and which do not relate to historical matters. You should not rely on forward-looking statements, because they involve known and unknown risks, uncertainties, and other factors, some of which are beyond our control. These risks, uncertainties, and other factors may cause our actual results, performance, or achievements to be materially different from the anticipated future results, performance, or achievements expressed or implied by the forward-looking statements.
Some of the factors that might cause these differences include the following:
- changes in general business and economic conditions on a national basis and in the local markets in which we operate;
- changes in customer behavior due to political, business, and economic conditions, including inflation and concerns about liquidity;
- interest rate changes or volatility, as well as changes in the balance and mix of loans and deposits;
- changes in loan demand and collectability;
- the possibility that future credit losses are higher than currently expected due to changes in economic assumptions or adverse economic developments;
- ongoing volatility in national and international financial markets;
- reductions in the market value or outflows of wealth management AUA;
- decreases in the value of securities and other assets;
- increases in defaults and charge-off rates;
- changes in the size and nature of our competition;
- changes in legislation or regulation and accounting principles, policies, and guidelines;
- operational risks including, but not limited to, changes in information technology, cybersecurity incidents, fraud, natural disasters, war, terrorism, civil unrest, and future pandemics;
- regulatory, litigation, and reputational risks; and
- changes in the assumptions used in making such forward-looking statements.
In addition, the factors described under "Risk Factors" in Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, as updated by our Quarterly Reports on Form 10-Q and other filings submitted to the SEC, may result in these differences. You should carefully review all of these factors, and you should be aware that there may be other factors that could cause these differences. These forward-looking statements were based on information, plans, and estimates at the date of this report, and we assume no obligation to update any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes.
Supplemental Information - Explanation of Non-GAAP Financial Measures
In addition to results presented in accordance with generally accepted accounting principles ("GAAP"), this press release contains certain non-GAAP financial measures. Washington Trust's management believes that the supplemental non-GAAP information, which consists of adjusted noninterest income, adjusted income before income taxes, adjusted income tax expense, adjusted effective tax rate, adjusted net income, adjusted net income available to common shareholders, adjusted diluted earnings per common share, adjusted return on average assets, adjusted return on average equity, and adjusted efficiency ratio, as well as measurements and ratios based on tangible equity and tangible assets, is utilized by regulators and market analysts to evaluate a company's financial condition and therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures, which may be presented by other companies. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names.
Washington Trust Bancorp, Inc. and Subsidiaries | |||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||
(Unaudited; Dollars in thousands) | |||||
Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | |
Assets: | |||||
Cash and due from banks | $109,902 | $206,971 | $103,877 | $102,136 | $86,824 |
Short-term investments | 3,987 | 3,772 | 3,654 | 3,452 | 3,360 |
Mortgage loans held for sale, at fair value | 21,708 | 20,864 | 26,116 | 25,462 | 20,077 |
Mortgage loans held for sale, at lower of cost or market | 281,706 | — | — | — | — |
Available for sale debt securities, at fair value | 916,305 | 973,266 | 951,828 | 970,060 | 1,000,380 |
Federal Home Loan Bank stock, at cost | 49,817 | 57,439 | 66,166 | 55,512 | 51,893 |
Loans: | |||||
Total loans | 5,137,838 | 5,514,870 | 5,629,102 | 5,685,232 | 5,647,706 |
Less: allowance for credit losses on loans | 41,960 | 42,630 | 42,378 | 41,905 | 41,057 |
Net loans | 5,095,878 | 5,472,240 | 5,586,724 | 5,643,327 | 5,606,649 |
Premises and equipment, net | 26,873 | 32,145 | 31,866 | 31,914 | 32,291 |
Operating lease right-of-use assets | 26,943 | 27,612 | 28,387 | 29,216 | 29,364 |
Investment in bank-owned life insurance | 106,777 | 105,998 | 105,228 | 104,475 | 103,736 |
Goodwill | 63,909 | 63,909 | 63,909 | 63,909 | 63,909 |
Identifiable intangible assets, net | 2,885 | 3,089 | 3,295 | 3,503 | 3,711 |
Other assets | 223,957 | 174,266 | 213,310 | 216,158 | 200,653 |
Total assets | $6,930,647 | $7,141,571 | $7,184,360 | $7,249,124 | $7,202,847 |
Liabilities: | |||||
Deposits: | |||||
Noninterest-bearing deposits | $661,776 | $665,706 | $645,661 | $648,929 | $693,746 |
Interest-bearing deposits | 4,454,024 | 4,506,184 | 4,330,465 | 4,698,964 | 4,654,414 |
Total deposits | 5,115,800 | 5,171,890 | 4,976,126 | 5,347,893 | 5,348,160 |
Federal Home Loan Bank advances | 1,125,000 | 1,300,000 | 1,550,000 | 1,240,000 | 1,190,000 |
Junior subordinated debentures | 22,681 | 22,681 | 22,681 | 22,681 | 22,681 |
Operating lease liabilities | 29,578 | 30,237 | 31,012 | 31,837 | 32,027 |
Other liabilities | 137,860 | 114,534 | 133,584 | 139,793 | 137,293 |
Total liabilities | 6,430,919 | 6,639,342 | 6,713,403 | 6,782,204 | 6,730,161 |
Shareholders' Equity: | |||||
Common stock | 1,223 | 1,085 | 1,085 | 1,085 | 1,085 |
Paid-in capital | 196,947 | 126,698 | 125,898 | 126,785 | 126,150 |
Retained earnings | 434,014 | 505,654 | 504,350 | 503,175 | 501,917 |
Accumulated other comprehensive loss | (119,171) | (117,158) | (146,326) | (148,913) | (141,153) |
Treasury stock, at cost | (13,285) | (14,050) | (14,050) | (15,212) | (15,313) |
Total shareholders' equity | 499,728 | 502,229 | 470,957 | 466,920 | 472,686 |
Total liabilities and shareholders' equity | $6,930,647 | $7,141,571 | $7,184,360 | $7,249,124 | $7,202,847 |
Washington Trust Bancorp, Inc. and Subsidiaries | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||
(Unaudited; Dollars and shares in thousands, except per share amounts) | ||||||||
For the Three Months Ended | For the Twelve Months Ended | |||||||
Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | Dec 31, | Dec 31, | ||
Interest income: | ||||||||
Interest and fees on loans | $71,432 | $75,989 | $76,240 | $75,636 | $74,236 | $299,297 | $270,330 | |
Interest on mortgage loans held for sale | 762 | 366 | 392 | 255 | 255 | 1,775 | 980 | |
Taxable interest on debt securities | 7,015 | 6,795 | 6,944 | 7,096 | 7,191 | 27,850 | 29,059 | |
Nontaxable interest on debt securities | 8 | — | — | — | — | 8 | — | |
Dividends on Federal Home Loan Bank stock | 1,312 | 1,262 | 1,124 | 1,073 | 982 | 4,771 | 3,315 | |
Other interest income | 1,310 | 3,174 | 1,297 | 1,196 | 1,282 | 6,977 | 4,975 | |
Total interest and dividend income | 81,839 | 87,586 | 85,997 | 85,256 | 83,946 | 340,678 | 308,659 | |
Interest expense: | ||||||||
Deposits | 34,135 | 37,203 | 36,713 | 38,047 | 37,067 | 146,098 | 120,429 | |
Federal Home Loan Bank advances | 14,388 | 17,717 | 17,296 | 15,138 | 13,814 | 64,539 | 49,589 | |
Junior subordinated debentures | 380 | 404 | 403 | 406 | 411 | 1,593 | 1,543 | |
Total interest expense | 48,903 | 55,324 | 54,412 | 53,591 | 51,292 | 212,230 | 171,561 | |
Net interest income | 32,936 | 32,262 | 31,585 | 31,665 | 32,654 | 128,448 | 137,098 | |
Provision for credit losses | 1,000 | 200 | 500 | 700 | 1,200 | 2,400 | 3,200 | |
Net interest income after provision for credit losses | 31,936 | 32,062 | 31,085 | 30,965 | 31,454 | 126,048 | 133,898 | |
Noninterest income: | ||||||||
Wealth management revenues | 10,049 | 9,989 | 9,678 | 9,338 | 8,881 | 39,054 | 35,540 | |
Mortgage banking revenues | 2,848 | 2,866 | 2,761 | 2,506 | 1,554 | 10,981 | 6,660 | |
Card interchange fees | 1,255 | 1,321 | 1,275 | 1,145 | 1,254 | 4,996 | 4,921 | |
Service charges on deposit accounts | 794 | 784 | 769 | 685 | 688 | 3,032 | 2,806 | |
Loan related derivative income | 8 | 126 | 49 | 284 | 112 | 467 | 1,390 | |
Income from bank-owned life insurance | 779 | 770 | 753 | 739 | 734 | 3,041 | 3,488 | |
Realized losses on securities, net | (31,047) | — | — | — | — | (31,047) | — | |
Losses on sale of portfolio loans, net | (62,888) | — | — | — | — | (62,888) | — | |
Other income | 310 | 416 | 1,375 | 2,466 | 83 | 4,567 | 1,335 | |
Total noninterest (loss) income | (77,892) | 16,272 | 16,660 | 17,163 | 13,306 | (27,797) | 56,140 | |
Noninterest expense: | ||||||||
Salaries and employee benefits | 21,875 | 21,350 | 21,260 | 21,775 | 18,464 | 86,260 | 82,458 | |
Outsourced services | 4,197 | 4,185 | 4,096 | 3,780 | 3,667 | 16,258 | 14,521 | |
Net occupancy | 2,428 | 2,399 | 2,397 | 2,561 | 2,396 | 9,785 | 9,636 | |
Equipment | 936 | 924 | 958 | 1,020 | 1,133 | 3,838 | 4,318 | |
Legal, audit, and professional fees | 845 | 836 | 741 | 706 | 959 | 3,128 | 3,891 | |
FDIC deposit insurance costs | 1,266 | 1,402 | 1,404 | 1,441 | 1,239 | 5,513 | 4,667 | |
Advertising and promotion | 560 | 857 | 661 | 548 | 938 | 2,626 | 2,562 | |
Amortization of intangibles | 204 | 206 | 208 | 208 | 208 | 826 | 843 | |
Other expenses | 1,981 | 2,345 | 2,185 | 2,324 | 3,583 | 8,835 | 10,661 | |
Total noninterest expense | 34,292 | 34,504 | 33,910 | 34,363 | 32,587 | 137,069 | 133,557 | |
(Loss) income before income taxes | (80,248) | 13,830 | 13,835 | 13,765 | 12,173 | (38,818) | 56,481 | |
Income tax (benefit) expense | (19,457) | 2,849 | 3,020 | 2,829 | (774) | (10,759) | 8,305 | |
Net (loss) income | ($60,791) | $10,981 | $10,815 | $10,936 | $12,947 | ($28,059) | $48,176 | |
Net (loss) income available to common shareholders | ($60,776) | $10,973 | $10,807 | $10,924 | $12,931 | ($28,038) | $48,091 | |
Weighted average common shares outstanding: | ||||||||
Basic | 17,452 | 17,058 | 17,052 | 17,033 | 17,029 | 17,149 | 17,033 | |
Diluted | 17,565 | 17,140 | 17,110 | 17,074 | 17,070 | 17,223 | 17,062 | |
(Loss) earnings per common share: | ||||||||
Basic | ($3.48) | $0.64 | $0.63 | $0.64 | $0.76 | ($1.63) | $2.82 | |
Diluted | ($3.46) | $0.64 | $0.63 | $0.64 | $0.76 | ($1.63) | $2.82 | |
Cash dividends declared per share | $0.56 | $0.56 | $0.56 | $0.56 | $0.56 | $2.24 | $2.24 | |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||
SELECTED FINANCIAL HIGHLIGHTS | |||||
(Unaudited; Dollars and shares in thousands, except per share amounts) | |||||
Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | |
Share and Equity Related Data: | |||||
Book value per share | $25.93 | $29.44 | $27.61 | $27.41 | $27.75 |
Tangible book value per share - Non-GAAP (1) | $22.46 | $25.51 | $23.67 | $23.45 | $23.78 |
Market value per share | $31.35 | $32.21 | $27.41 | $26.88 | $32.38 |
Shares issued at end of period | 19,562 | 17,363 | 17,363 | 17,363 | 17,363 |
Shares outstanding at end of period | 19,274 | 17,058 | 17,058 | 17,033 | 17,031 |
Capital Ratios (2): | |||||
Tier 1 risk-based capital | 11.64 % | 11.39 % | 11.01 % | 10.84 % | 10.86 % |
Total risk-based capital | 12.47 % | 12.21 % | 11.81 % | 11.62 % | 11.58 % |
Tier 1 leverage ratio | 8.13 % | 7.85 % | 7.82 % | 7.81 % | 7.80 % |
Common equity tier 1 | 11.20 % | 10.95 % | 10.59 % | 10.42 % | 10.44 % |
Balance Sheet Ratios: | |||||
Equity to assets | 7.21 % | 7.03 % | 6.56 % | 6.44 % | 6.56 % |
Tangible equity to tangible assets - Non-GAAP (1) | 6.31 % | 6.15 % | 5.67 % | 5.56 % | 5.68 % |
Loans to deposits (3) | 105.5 % | 106.2 % | 112.8 % | 106.0 % | 105.2 % |
For the Three Months Ended | For the Twelve Months Ended | |||||||
Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | Dec 31, | Dec 31, | ||
Performance Ratios (4): | ||||||||
Net interest margin (5) | 1.95 % | 1.85 % | 1.83 % | 1.84 % | 1.88 % | 1.87 % | 2.05 % | |
Return on average assets (6) | (3.45 %) | 0.60 % | 0.60 % | 0.61 % | 0.71 % | (0.39 %) | 0.69 % | |
Adjusted return on average assets - Non-GAAP (1) | 0.59 % | 0.60 % | 0.56 % | 0.52 % | 0.53 % | 0.57 % | 0.64 % | |
Return on average tangible assets - Non-GAAP (1) | 0.60 % | 0.61 % | 0.57 % | 0.53 % | 0.54 % | 0.57 % | 0.65 % | |
Return on average equity (7) | (48.25 %) | 8.99 % | 9.43 % | 9.33 % | 11.77 % | (5.84 %) | 10.57 % | |
Adjusted return on average equity - Non-GAAP (1) | 8.29 % | 8.99 % | 8.79 % | 7.99 % | 8.81 % | 8.52 % | 9.85 % | |
Return on average tangible equity - Non-GAAP (1) | 9.57 % | 10.43 % | 10.29 % | 9.32 % | 10.43 % | 9.91 % | 11.59 % | |
Efficiency ratio (8) | (76.3 %) | 71.1 % | 70.3 % | 70.4 % | 70.9 % | 136.2 % | 69.1 % | |
Adjusted efficiency ratio - Non-GAAP (1) | 70.0 % | 71.1 % | 71.8 % | 73.5 % | 70.9 % | 71.6 % | 69.1 % | |
(1) See the section labeled "Supplemental Information - Calculation of Non-GAAP Financial Measures" at the end of this document. |
(2) Estimated for December 31, 2024 and actuals for prior periods. |
(3) Period-end balances of net loans and mortgage loans held for sale as a percentage of total deposits. |
(4) Annualized based on the actual number of days in the period. |
(5) Fully taxable equivalent (FTE) net interest income as a percentage of average-earnings assets. |
(6) Net income divided by average assets. |
(7) Net income available for common shareholders divided by average equity. |
(8) Total noninterest expense as percentage of total revenues (net interest income and noninterest income). |
Washington Trust Bancorp, Inc. and Subsidiaries | ||||||||
SELECTED FINANCIAL HIGHLIGHTS | ||||||||
(Unaudited; Dollars in thousands) | ||||||||
For the Three Months Ended | For the Twelve Months Ended | |||||||
Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | Dec 31, | Dec 31, | ||
Wealth Management Results | ||||||||
Wealth Management Revenues: | ||||||||
Asset-based revenues | $9,910 | $9,770 | $9,239 | $9,089 | $8,634 | $38,008 | $34,308 | |
Transaction-based revenues | 139 | 219 | 439 | 249 | 247 | 1,046 | 1,232 | |
Total wealth management revenues | $10,049 | $9,989 | $9,678 | $9,338 | $8,881 | $39,054 | $35,540 | |
Assets Under Administration (AUA): | ||||||||
Balance at beginning of period | $7,052,408 | $6,803,491 | $6,858,322 | $6,588,406 | $6,131,395 | $6,588,406 | $5,961,990 | |
Net investment appreciation & income | 57,706 | 372,027 | 108,529 | 364,244 | 503,209 | 902,506 | 894,990 | |
Net client asset outflows | (32,312) | (123,110) | (163,360) | (94,328) | (46,198) | (413,110) | (268,574) | |
Balance at end of period | $7,077,802 | $7,052,408 | $6,803,491 | $6,858,322 | $6,588,406 | $7,077,802 | $6,588,406 | |
Percentage of AUA that are managed assets | 91 % | 91 % | 91 % | 91 % | 91 % | 91 % | 91 % | |
Mortgage Banking Results | ||||||||
Mortgage Banking Revenues: | ||||||||
Realized gains on loan sales, net (1) | $2,493 | $2,492 | $2,205 | $1,586 | $1,133 | $8,776 | $4,282 | |
Changes in fair value, net (2) | (317) | (28) | 20 | 324 | (65) | (1) | 232 | |
Loan servicing fee income, net (3) | 672 | 402 | 536 | 596 | 486 | 2,206 | 2,146 | |
Total mortgage banking revenues | $2,848 | $2,866 | $2,761 | $2,506 | $1,554 | $10,981 | $6,660 | |
Residential Mortgage Loan Originations: | ||||||||
Originations for retention in portfolio (4) | $15,155 | $26,317 | $26,520 | $24,474 | $39,827 | $92,466 | $459,892 | |
Originations for sale to secondary market (5) | 114,137 | 115,117 | 110,728 | 78,098 | 76,495 | 418,080 | 260,592 | |
Total mortgage loan originations | $129,292 | $141,434 | $137,248 | $102,572 | $116,322 | $510,546 | $720,484 | |
Residential Mortgage Loans Sold: | ||||||||
Sold with servicing rights retained | $62,410 | $17,881 | $24,570 | $24,057 | $28,290 | $128,918 | $108,177 | |
Sold with servicing rights released (5) | 50,697 | 102,457 | 85,482 | 48,587 | 39,170 | 287,223 | 141,795 | |
Total mortgage loans sold | $113,107 | $120,338 | $110,052 | $72,644 | $67,460 | $416,141 | $249,972 | |
(1) Includes gains on loan sales, commission income on loans originated for others, servicing right gains, and gains (losses) on forward loan commitments. |
(2) Represents fair value changes on mortgage loans held for sale and forward loan commitments. |
(3) Represents loan servicing fee income, net of servicing right amortization and valuation adjustments. |
(4) Includes the full commitment amount of homeowner construction loans. |
(5) Includes brokered loans (loans originated for others). |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||
END OF PERIOD LOAN COMPOSITION | |||||
(Unaudited; Dollars in thousands) | |||||
Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | |
Loans: | |||||
Commercial real estate (1) | $2,154,504 | $2,102,091 | $2,191,996 | $2,158,518 | $2,106,359 |
Commercial & industrial | 542,474 | 566,279 | 558,075 | 613,376 | 605,072 |
Total commercial | 2,696,978 | 2,668,370 | 2,750,071 | 2,771,894 | 2,711,431 |
Residential real estate (2) | 2,126,171 | 2,529,397 | 2,558,533 | 2,585,524 | 2,604,478 |
Home equity | 297,119 | 299,379 | 302,027 | 309,302 | 312,594 |
Other | 17,570 | 17,724 | 18,471 | 18,512 | 19,203 |
Total consumer | 314,689 | 317,103 | 320,498 | 327,814 | 331,797 |
Total loans | $5,137,838 | $5,514,870 | $5,629,102 | $5,685,232 | $5,647,706 |
(1) | Commercial real estate loans consist of commercial mortgages and construction and development loans. Commercial mortgages are loans secured by income producing property. |
(2) | Residential real estate loans consist of mortgage and homeowner construction loans secured by one- to four-family residential properties. |
December 31, 2024 | December 31, 2023 | ||||
Balance | % of Total | Balance | % of Total | ||
Commercial Real Estate Loans by Property Location: | |||||
Connecticut | $839,079 | 39 % | $815,975 | 39 % | |
Massachusetts | 663,026 | 31 | 645,736 | 31 | |
Rhode Island | 434,244 | 20 | 430,899 | 20 | |
Subtotal | 1,936,349 | 90 | 1,892,610 | 90 | |
All other states | 218,155 | 10 | 213,749 | 10 | |
Total commercial real estate loans | $2,154,504 | 100 % | $2,106,359 | 100 % | |
Residential Real Estate Loans by Property Location: | |||||
Massachusetts | $1,530,847 | 72 % | $1,928,206 | 74 % | |
Rhode Island | 443,237 | 21 | 481,289 | 19 | |
Connecticut | 128,933 | 6 | 165,933 | 6 | |
Subtotal | 2,103,017 | 99 | 2,575,428 | 99 | |
All other states | 23,154 | 1 | 29,050 | 1 | |
Total residential real estate loans | $2,126,171 | 100 % | $2,604,478 | 100 % | |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||
END OF PERIOD LOAN COMPOSITION | |||||
(Unaudited; Dollars in thousands) | |||||
December 31, 2024 | December 31, 2023 | ||||
Balance | % of Total | Balance | % of Total | ||
Commercial Real Estate Portfolio Segmentation: | |||||
Multi-family | $567,243 | 26 % | $546,694 | 26 % | |
Retail | 433,146 | 20 | 434,913 | 21 | |
Industrial and warehouse | 358,425 | 17 | 307,987 | 15 | |
Office | 289,853 | 13 | 284,199 | 13 | |
Hospitality | 213,585 | 10 | 235,015 | 11 | |
Healthcare Facility | 205,858 | 10 | 175,490 | 8 | |
Mixed-use | 29,023 | 1 | 49,079 | 2 | |
Other | 57,371 | 3 | 72,982 | 4 | |
Total commercial real estate loans | $2,154,504 | 100 % | $2,106,359 | 100 % | |
Commercial & Industrial Portfolio Segmentation: | |||||
Healthcare and social assistance | $126,547 | 23 % | $166,490 | 28 % | |
Real estate rental and leasing | 63,992 | 12 | 70,540 | 12 | |
Transportation and warehousing | 55,784 | 10 | 63,789 | 11 | |
Educational services | 47,092 | 9 | 41,968 | 7 | |
Retail trade | 41,132 | 8 | 43,746 | 7 | |
Manufacturing | 32,140 | 6 | 54,905 | 9 | |
Finance and insurance | 26,557 | 5 | 33,617 | 6 | |
Information | 22,265 | 4 | 22,674 | 4 | |
Arts, entertainment, and recreation | 19,861 | 4 | 22,249 | 4 | |
Accommodation and food services | 12,368 | 2 | 13,502 | 2 | |
Professional, scientific, and technical services | 10,845 | 2 | 7,998 | 1 | |
Public administration | 2,186 | — | 3,019 | — | |
Other | 81,705 | 15 | 60,575 | 9 | |
Total commercial & industrial loans | $542,474 | 100 % | $605,072 | 100 % | |
Weighted Average | Asset Quality | |||||||||
Balance | Average Loan Size (4) | Loan to | Debt Service | Pass | Special | Classified | Nonaccrual | |||
Non-Owner Occupied Commercial Real Estate Office (inclusive of Construction): | ||||||||||
Class A | $112,478 | $9,444 | 58 % | 1.73x | $106,211 | $— | $6,267 | $— | ||
Class B | 79,709 | 4,223 | 59 % | 1.51x | 69,656 | — | 10,053 | 10,053 | ||
Class C | 14,684 | 2,098 | 56 % | 1.57x | 12,447 | 2,237 | — | — | ||
Medical Office | 55,909 | 7,498 | 69 % | 1.33x | 55,909 | — | — | — | ||
Lab Space | 27,073 | 23,466 | 91 % | 1.20x | — | 6,116 | 20,957 | — | ||
Total office at December 31, 2024 (1) | $289,853 | $6,566 | 65 % | 1.51x | $244,223 | $8,353 | $37,277 | $10,053 | ||
Total office at September 30, 2024 | $296,545 | $6,584 | 68 % | 1.45x | $248,050 | $6,291 | $42,204 | $18,259 | ||
Total office linked quarter change | ($6,692) | ($18) | (3 %) | 0.06x | ($3,827) | $2,062 | ($4,927) | ($8,206) | ||
(1) | Approximately 68% of the total commercial real estate office balance of $290 million is secured by income producing properties located in suburban areas. Additionally, approximately 51% of the total commercial real estate office balance is scheduled to mature before December 31, 2026. |
(2) | Balance of commercial real estate office consists of 48 loans as of December 31, 2024. |
(3) | Does not include $25.3 million of unfunded commitments as of December 31, 2024. |
(4) | Total commitment (outstanding loan balance plus unfunded commitments) divided by number of loans. |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||
END OF PERIOD DEPOSIT COMPOSITION & CONTINGENT LIQUIDITY | |||||
(Unaudited; Dollars in thousands) | |||||
Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | |
Deposits: | |||||
Noninterest-bearing demand deposits | $661,776 | $665,706 | $645,661 | $648,929 | $693,746 |
Interest-bearing demand deposits (in-market) | 592,904 | 596,319 | 532,316 | 536,923 | 504,959 |
NOW accounts | 692,812 | 685,531 | 722,797 | 735,617 | 767,036 |
Money market accounts | 1,154,745 | 1,146,426 | 1,086,088 | 1,111,510 | 1,096,959 |
Savings accounts | 523,915 | 490,285 | 485,208 | 484,678 | 497,223 |
Time deposits (in-market) | 1,192,110 | 1,207,626 | 1,164,839 | 1,156,516 | 1,134,187 |
In-market deposits | 4,818,262 | 4,791,893 | 4,636,909 | 4,674,173 | 4,694,110 |
Wholesale brokered time deposits | 297,538 | 379,997 | 339,217 | 673,720 | 654,050 |
Total deposits | $5,115,800 | $5,171,890 | $4,976,126 | $5,347,893 | $5,348,160 |
December 31, 2024 | December 31, 2023 | ||||
Balance | % of Total | Balance | % of Total | ||
Uninsured Deposits: | |||||
Uninsured deposits (1) | $1,363,689 | 27 % | $1,260,672 | 24 % | |
Less: affiliate deposits (2) | 94,740 | 2 | 92,645 | 2 | |
Uninsured deposits, excluding affiliate deposits | 1,268,949 | 25 | 1,168,027 | 22 | |
Less: fully-collateralized preferred deposits (3) | 197,638 | 4 | 204,327 | 4 | |
Uninsured deposits, after exclusions | $1,071,311 | 21 % | $963,700 | 18 % | |
(1) | Determined in accordance with regulatory reporting requirements, which includes affiliate deposits and fully-collateralized preferred deposits. |
(2) | Uninsured deposit balances of Washington Trust Bancorp, Inc. and its subsidiaries that are eliminated in consolidation. |
(3) | Uninsured deposits of states and political subdivisions, which are secured or collateralized as required by state law. |
Dec 31, | Dec 31, | |
Contingent Liquidity: | ||
Federal Home Loan Bank of Boston (1) | $752,951 | $1,086,607 |
Federal Reserve Bank of Boston | 70,286 | 65,759 |
Available cash liquidity (2) | 36,647 | 54,970 |
Unencumbered securities | 597,771 | 680,857 |
Total | $1,457,655 | $1,888,193 |
Percentage of total contingent liquidity to uninsured deposits | 106.9 % | 149.8 % |
Percentage of total contingent liquidity to uninsured deposits, after exclusions | 136.1 % | 195.9 % |
(1) | As of December 31, 2024, borrowing capacity at the FHLB declined as residential loan collateral was reclassified to held for sale as part of the balance sheet repositioning. On January 24, 2025, the sale of these loans was completed and the cash proceeds received will be used to pay down FHLB advances or other wholesale funding balances. |
(2) | Available cash liquidity excludes amounts restricted for collateral purposes and designated for operating needs. |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||
CREDIT & ASSET QUALITY DATA | |||||
(Unaudited; Dollars in thousands) | |||||
Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | |
Asset Quality Ratios: | |||||
Nonperforming assets to total assets | 0.34 % | 0.44 % | 0.43 % | 0.43 % | 0.63 % |
Nonaccrual loans to total loans | 0.45 % | 0.56 % | 0.54 % | 0.54 % | 0.79 % |
Total past due loans to total loans | 0.23 % | 0.37 % | 0.21 % | 0.18 % | 0.20 % |
Allowance for credit losses on loans to nonaccrual loans | 180.03 % | 136.89 % | 139.04 % | 136.45 % | 92.02 % |
Allowance for credit losses on loans to total loans | 0.82 % | 0.77 % | 0.75 % | 0.74 % | 0.73 % |
Nonperforming Assets: | |||||
Commercial real estate | $10,053 | $18,259 | $18,390 | $18,729 | $32,827 |
Commercial & industrial | 515 | 616 | 642 | 668 | 682 |
Total commercial | 10,568 | 18,875 | 19,032 | 19,397 | 33,509 |
Residential real estate | 10,767 | 10,517 | 9,744 | 9,722 | 9,626 |
Home equity | 1,972 | 1,750 | 1,703 | 1,591 | 1,483 |
Other consumer | — | — | — | — | — |
Total consumer | 1,972 | 1,750 | 1,703 | 1,591 | 1,483 |
Total nonaccrual loans | 23,307 | 31,142 | 30,479 | 30,710 | 44,618 |
Other real estate owned | — | — | 683 | 683 | 683 |
Total nonperforming assets | $23,307 | $31,142 | $31,162 | $31,393 | $45,301 |
Past Due Loans (30 days or more past due): | |||||
Commercial real estate | $— | $10,476 | $— | $— | $— |
Commercial & industrial | 900 | 3 | 2 | 270 | 10 |
Total commercial | 900 | 10,479 | 2 | 270 | 10 |
Residential real estate | 7,741 | 6,947 | 8,534 | 6,858 | 8,116 |
Home equity | 2,947 | 2,800 | 3,324 | 2,879 | 3,196 |
Other consumer | 394 | 75 | 20 | 32 | 23 |
Total consumer | 3,341 | 2,875 | 3,344 | 2,911 | 3,219 |
Total past due loans | $11,982 | $20,301 | $11,880 | $10,039 | $11,345 |
Accruing loans 90 days or more past due | $— | $— | $— | $— | $— |
Nonaccrual loans included in past due loans | $6,447 | $18,119 | $8,409 | $5,111 | $6,877 |
Washington Trust Bancorp, Inc. and Subsidiaries | ||||||||
CREDIT & ASSET QUALITY DATA | ||||||||
(Unaudited; Dollars in thousands)
| ||||||||
For the Three Months Ended | For the Twelve Months Ended | |||||||
Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | Dec 31, | Dec 31, | ||
Nonaccrual Loan Activity: | ||||||||
Balance at beginning of period | $31,142 | $30,479 | $30,710 | $44,618 | $33,652 | $44,618 | $12,846 | |
Additions to nonaccrual status | 5,417 | 1,880 | 556 | 431 | 12,018 | 8,284 | 40,276 | |
Loans returned to accruing status | (9) | (268) | (369) | (13,764) | — | (14,410) | (1,636) | |
Loans charged-off | (2,231) | (59) | (53) | (70) | (420) | (2,413) | (577) | |
Loans transferred to other real estate owned | — | — | — | — | — | — | (683) | |
Payments, payoffs, and other changes | (11,012) | (890) | (365) | (505) | (632) | (12,772) | (5,608) | |
Balance at end of period | $23,307 | $31,142 | $30,479 | $30,710 | $44,618 | $23,307 | $44,618 | |
Allowance for Credit Losses on Loans: | ||||||||
Balance at beginning of period | $42,630 | $42,378 | $41,905 | $41,057 | $40,213 | $41,057 | $38,027 | |
Provision for credit losses on loans (1) | 1,200 | 300 | 500 | 900 | 1,250 | 2,900 | 3,550 | |
Charge-offs | (2,231) | (59) | (53) | (70) | (420) | (2,413) | (577) | |
Recoveries | 361 | 11 | 26 | 18 | 14 | 416 | 57 | |
Balance at end of period | $41,960 | $42,630 | $42,378 | $41,905 | $41,057 | $41,960 | $41,057 | |
Allowance for Credit Losses on Unfunded Commitments: | ||||||||
Balance at beginning of period | $1,640 | $1,740 | $1,740 | $1,940 | $1,990 | $1,940 | $2,290 | |
Provision for credit losses on unfunded commitments (1) | (200) | (100) | — | (200) | (50) | (500) | (350) | |
Balance at end of period (2) | $1,440 | $1,640 | $1,740 | $1,740 | $1,940 | $1,440 | $1,940 | |
(1) Included in provision for credit losses in the Consolidated Statements of Income. |
(2) Included in other liabilities in the Consolidated Balance Sheets. |
For the Three Months Ended | For the Twelve Months Ended | |||||||
Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | Dec 31, | Dec 31, | ||
Net Loan Charge-Offs (Recoveries): | ||||||||
Commercial real estate | $1,961 | $— | $— | $— | $373 | $1,961 | $373 | |
Commercial & industrial | 181 | 2 | 4 | (1) | 10 | 186 | 25 | |
Total commercial | 2,142 | 2 | 4 | (1) | 383 | 2,147 | 398 | |
Residential real estate | (160) | — | — | — | (3) | (160) | (3) | |
Home equity | (189) | (1) | (6) | (1) | — | (197) | (10) | |
Other consumer | 77 | 47 | 29 | 54 | 26 | 207 | 135 | |
Total consumer | (112) | 46 | 23 | 53 | 26 | 10 | 125 | |
Total | $1,870 | $48 | $27 | $52 | $406 | $1,997 | $520 | |
Net charge-offs to average loans - annualized | 0.14 % | — % | — % | — % | 0.03 % | 0.04 % | 0.01 % | |
The following tables present daily average balance, interest, and yield/rate information, as well as net interest margin on an FTE basis. Tax-exempt income is converted to an FTE basis using the statutory federal income tax rate adjusted for applicable state income taxes net of the related federal tax benefit. Unrealized gains (losses) on available for sale securities, changes in fair value on mortgage loans held for sale, and basis adjustments associated with fair value hedges are excluded from the average balance and yield calculations. Nonaccrual loans, as well as interest recognized on these loans, are included in amounts presented for loans.
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||
CONSOLIDATED AVERAGE BALANCE SHEETS (FTE Basis) | |||||||||||
(Unaudited; Dollars in thousands) | |||||||||||
For the Three Months Ended | December 31, 2024 | September 30, 2024 | Change | ||||||||
Average | Interest | Yield/ Rate | Average | Interest | Yield/ Rate | Average | Interest | Yield/ Rate | |||
Assets: | |||||||||||
Cash, federal funds sold, and short-term investments | $110,327 | $1,310 | 4.72 % | $229,326 | $3,174 | 5.51 % | ($118,999) | ($1,864) | (0.79 %) | ||
Mortgage loans held for sale | 75,731 | 762 | 4.00 | 21,899 | 366 | 6.65 | 53,832 | 396 | (2.65) | ||
Taxable debt securities | 1,087,076 | 7,016 | 2.57 | 1,109,699 | 6,794 | 2.44 | (22,623) | 222 | 0.13 | ||
Nontaxable debt securities | 650 | 8 | 4.90 | 85 | 1 | 4.68 | 565 | 7 | 0.22 | ||
Total securities | 1,087,726 | 7,024 | 2.57 | 1,109,784 | 6,795 | 2.44 | (22,058) | 229 | 0.13 | ||
FHLB stock | 52,508 | 1,312 | 9.94 | 62,420 | 1,262 | 8.04 | (9,912) | 50 | 1.90 | ||
Commercial real estate | 2,130,040 | 31,878 | 5.95 | 2,143,466 | 34,518 | 6.41 | (13,426) | (2,640) | (0.46) | ||
Commercial & industrial | 548,871 | 8,528 | 6.18 | 573,400 | 9,368 | 6.50 | (24,529) | (840) | (0.32) | ||
Total commercial | 2,678,911 | 40,406 | 6.00 | 2,716,866 | 43,886 | 6.43 | (37,955) | (3,480) | (0.43) | ||
Residential real estate | 2,446,905 | 25,681 | 4.18 | 2,542,939 | 26,568 | 4.16 | (96,034) | (887) | 0.02 | ||
Home equity | 295,879 | 5,366 | 7.21 | 299,227 | 5,554 | 7.38 | (3,348) | (188) | (0.17) | ||
Other | 17,534 | 217 | 4.92 | 18,097 | 215 | 4.73 | (563) | 2 | 0.19 | ||
Total consumer | 313,413 | 5,583 | 7.09 | 317,324 | 5,769 | 7.23 | (3,911) | (186) | (0.14) | ||
Total loans | 5,439,229 | 71,670 | 5.24 | 5,577,129 | 76,223 | 5.44 | (137,900) | (4,553) | (0.20) | ||
Total interest-earning assets | 6,765,521 | 82,078 | 4.83 | 7,000,558 | 87,820 | 4.99 | (235,037) | (5,742) | (0.16) | ||
Noninterest-earning assets | 246,318 | 254,008 | (7,690) | ||||||||
Total assets | $7,011,839 | $7,254,566 | ($242,727) | ||||||||
Liabilities and Shareholders' Equity: | |||||||||||
Interest-bearing demand deposits (in-market) | $602,737 | $6,098 | 4.02 % | $556,245 | $6,288 | 4.50 % | $46,492 | ($190) | (0.48 %) | ||
NOW accounts | 680,763 | 404 | 0.24 | 693,724 | 405 | 0.23 | (12,961) | (1) | 0.01 | ||
Money market accounts | 1,160,962 | 10,139 | 3.47 | 1,122,649 | 11,221 | 3.98 | 38,313 | (1,082) | (0.51) | ||
Savings accounts | 502,910 | 1,164 | 0.92 | 484,068 | 984 | 0.81 | 18,842 | 180 | 0.11 | ||
Time deposits (in-market) | 1,193,733 | 11,840 | 3.95 | 1,188,452 | 12,234 | 4.10 | 5,281 | (394) | (0.15) | ||
Interest-bearing in-market deposits | 4,141,105 | 29,645 | 2.85 | 4,045,138 | 31,132 | 3.06 | 95,967 | (1,487) | (0.21) | ||
Wholesale brokered time deposits | 345,668 | 4,490 | 5.17 | 458,114 | 6,071 | 5.27 | (112,446) | (1,581) | (0.10) | ||
Total interest-bearing deposits | 4,486,773 | 34,135 | 3.03 | 4,503,252 | 37,203 | 3.29 | (16,479) | (3,068) | (0.26) | ||
FHLB advances | 1,188,804 | 14,388 | 4.81 | 1,423,804 | 17,717 | 4.95 | (235,000) | (3,329) | (0.14) | ||
Junior subordinated debentures | 22,681 | 380 | 6.67 | 22,681 | 404 | 7.09 | — | (24) | (0.42) | ||
Total interest-bearing liabilities | 5,698,258 | 48,903 | 3.41 | 5,949,737 | 55,324 | 3.70 | (251,479) | (6,421) | (0.29) | ||
Noninterest-bearing demand deposits | 668,138 | 673,113 | (4,975) | ||||||||
Other liabilities | 144,344 | 146,045 | (1,701) | ||||||||
Shareholders' equity | 501,099 | 485,654 | 15,445 | ||||||||
Total liabilities and shareholders' equity | $7,011,839 | $7,254,549 | ($242,710) | ||||||||
Net interest income (FTE) | $33,175 | $32,496 | $679 | ||||||||
Interest rate spread | 1.42 % | 1.29 % | 0.13 % | ||||||||
Net interest margin | 1.95 % | 1.85 % | 0.10 % | ||||||||
Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency: | |||
For the Three Months Ended | Dec 31, 2024 | Sep 30, 2024 | Change |
Commercial loans | $234 | $234 | $— |
Nontaxable debt securities | 1 | — | 1 |
Total | $235 | $234 | $1 |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||
CONSOLIDATED AVERAGE BALANCE SHEETS (FTE Basis) | |||||||||
(Unaudited; Dollars in thousands)
| |||||||||
For the Twelve Months Ended | December 31, 2024 | December 31, 2023 | Change | ||||||
Average | Interest | Yield/ Rate | Average | Interest | Yield/ Rate | Average | Interest | Yield/ Rate | |
Assets: | |||||||||
Cash, federal funds sold and short-term investments | $129,119 | $6,977 | 5.40 % | $101,166 | $4,975 | 4.92 % | $27,953 | $2,002 | 0.48 % |
Mortgage loans for sale | 34,040 | 1,775 | 5.21 | 17,384 | 980 | 5.64 | 16,656 | 795 | (0.43) |
Taxable debt securities | 1,118,092 | 27,850 | 2.49 | 1,185,102 | 29,059 | 2.45 | (67,010) | (1,209) | 0.04 |
Nontaxable debt securities | 185 | 9 | 4.86 | — | — | — | 185 | 9 | 4.86 |
Total securities | 1,118,277 | 27,859 | 2.49 | 1,185,102 | 29,059 | 2.45 | (66,825) | (1,200) | 0.04 |
FHLB stock | 57,286 | 4,771 | 8.33 | 46,880 | 3,315 | 7.07 | 10,406 | 1,456 | 1.26 |
Commercial real estate | 2,145,496 | 135,323 | 6.31 | 1,970,580 | 118,887 | 6.03 | 174,916 | 16,436 | 0.28 |
Commercial & industrial | 583,827 | 37,623 | 6.44 | 615,494 | 38,326 | 6.23 | (31,667) | (703) | 0.21 |
Total commercial | 2,729,323 | 172,946 | 6.34 | 2,586,074 | 157,213 | 6.08 | 143,249 | 15,733 | 0.26 |
Residential real estate | 2,537,903 | 105,253 | 4.15 | 2,490,991 | 96,080 | 3.86 | 46,912 | 9,173 | 0.29 |
Home equity | 302,980 | 21,136 | 6.98 | 297,396 | 17,129 | 5.76 | 5,584 | 4,007 | 1.22 |
Other | 18,277 | 882 | 4.83 | 18,085 | 854 | 4.72 | 192 | 28 | 0.11 |
Total consumer | 321,257 | 22,018 | 6.85 | 315,481 | 17,983 | 5.70 | 5,776 | 4,035 | 1.15 |
Total loans | 5,588,483 | 300,217 | 5.37 | 5,392,546 | 271,276 | 5.03 | 195,937 | 28,941 | 0.34 |
Total interest-earning assets | 6,927,205 | 341,599 | 4.93 | 6,743,078 | 309,605 | 4.59 | 184,127 | 31,994 | 0.34 |
Noninterest-earning assets | 253,957 | 255,962 | (2,005) | ||||||
Total assets | $7,181,162 | $6,999,040 | $182,122 | ||||||
Liabilities and Shareholders' Equity: | |||||||||
Interest-bearing demand deposits (in-market) | $550,652 | $24,156 | 4.39 % | $415,725 | $17,521 | 4.21 % | $134,927 | $6,635 | 0.18 % |
NOW accounts | 701,989 | 1,572 | 0.22 | 766,492 | 1,594 | 0.21 | (64,503) | (22) | 0.01 |
Money market accounts | 1,127,960 | 42,710 | 3.79 | 1,191,036 | 37,145 | 3.12 | (63,076) | 5,565 | 0.67 |
Savings accounts | 489,998 | 3,704 | 0.76 | 526,275 | 1,687 | 0.32 | (36,277) | 2,017 | 0.44 |
Time deposits (in-market) | 1,172,500 | 47,595 | 4.06 | 1,010,629 | 33,609 | 3.33 | 161,871 | 13,986 | 0.73 |
Interest-bearing in-market deposits | 4,043,099 | 119,737 | 2.96 | 3,910,157 | 91,556 | 2.34 | 132,942 | 28,181 | 0.62 |
Wholesale brokered demand deposits | — | — | — | 4,015 | 178 | 4.43 | (4,015) | (178) | (4.43) |
Wholesale brokered time deposits | 504,638 | 26,361 | 5.22 | 602,423 | 28,695 | 4.76 | (97,785) | (2,334) | 0.46 |
Wholesale brokered deposits | 504,638 | 26,361 | 5.22 | 606,438 | 28,873 | 4.76 | (101,800) | (2,512) | 0.46 |
Total interest-bearing deposits | 4,547,737 | 146,098 | 3.21 | 4,516,595 | 120,429 | 2.67 | 31,142 | 25,669 | 0.54 |
FHLB advances | 1,312,391 | 64,539 | 4.92 | 1,056,726 | 49,589 | 4.69 | 255,665 | 14,950 | 0.23 |
Junior subordinated debentures | 22,681 | 1,593 | 7.02 | 22,681 | 1,543 | 6.80 | — | 50 | 0.22 |
Total interest-bearing liabilities | 5,882,809 | 212,230 | 3.61 | 5,596,002 | 171,561 | 3.07 | 286,807 | 40,669 | 0.54 |
Noninterest-bearing demand deposits | 664,557 | 778,152 | (113,595) | ||||||
Other liabilities | 154,019 | 169,842 | (15,823) | ||||||
Shareholders' equity | 479,777 | 455,044 | 24,733 | ||||||
Total liabilities and shareholders' equity | $7,181,162 | $6,999,040 | $182,122 | ||||||
Net interest income (FTE) | $129,369 | $138,044 | ($8,675) | ||||||
Interest rate spread | 1.32 % | 1.52 % | (0.20 %) | ||||||
Net interest margin | 1.87 % | 2.05 % | (0.18 %) | ||||||
Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency: | |||
For the Twelve Months Ended | Dec 31, 2024 | Dec 31, 2023 | Change |
Commercial loans | $916 | $946 | ($30) |
Nontaxable debt securities | 1 | — | 1 |
Total | $917 | $946 | ($29) |
Washington Trust Bancorp, Inc. and Subsidiaries | ||||||||
SUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures | ||||||||
(Unaudited; Dollars in thousands, except per share amounts) | ||||||||
For the Three Months Ended | For the Twelve Months Ended | |||||||
Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | Dec 31, | Dec 31, | ||
Noninterest (loss) income, as reported - GAAP | ($77,892) | $16,272 | $16,660 | $17,163 | $13,306 | ($27,797) | $56,140 | |
Less adjustments: | ||||||||
Realized losses on securities, net | (31,047) | — | — | — | — | (31,047) | — | |
Losses on sale of portfolio loans, net | (62,888) | — | — | — | — | (62,888) | — | |
Net gain on sale of bank-owned operations facility | — | — | 988 | — | — | 988 | — | |
Litigation settlement income | — | — | — | 2,100 | — | 2,100 | — | |
Total adjustments, pre-tax | (93,935) | — | 988 | 2,100 | — | (90,847) | — | |
Adjusted noninterest income - Non-GAAP | $16,043 | $16,272 | $15,672 | $15,063 | $13,306 | $63,050 | $56,140 | |
(Loss) income before income taxes | ($80,248) | $13,830 | $13,835 | $13,765 | $12,173 | ($38,818) | $56,481 | |
Less: adjustments, pre-tax | (93,935) | — | 988 | 2,100 | — | (90,847) | — | |
Adjusted income before income taxes - Non-GAAP | $13,687 | $13,830 | $12,847 | $11,665 | $12,173 | $52,029 | $56,481 | |
Income tax (benefit) expense, as reported - GAAP | ($19,457) | $2,849 | $3,020 | $2,829 | ($774) | ($10,759) | $8,305 | |
Less: tax on adjustments | (22,699) | — | 249 | 530 | — | (21,920) | — | |
Less: state legislative tax change (tax only adjustment) | — | — | — | — | (3,253) | — | (3,253) | |
Total adjustments, tax | (22,699) | — | 249 | 530 | (3,253) | (21,920) | (3,253) | |
Adjusted income tax expense - Non-GAAP | $3,242 | $2,849 | $2,771 | $2,299 | $2,479 | $11,161 | $11,558 | |
Effective tax rate - GAAP | 24.2 % | 20.6 % | 21.8 % | 20.6 % | (6.4 %) | 27.7 % | 14.7 % | |
Less: impact of adjustments | (0.5) | — | (0.2) | (0.9) | 26.8 | (6.2) | 5.8 | |
Adjusted effective tax rate - Non-GAAP | 23.7 % | 20.6 % | 21.6 % | 19.7 % | 20.4 % | 21.5 % | 20.5 % | |
Net (loss) income, as reported - GAAP | ($60,791) | $10,981 | $10,815 | $10,936 | $12,947 | ($28,059) | $48,176 | |
Less: adjustments, after-tax | (71,236) | — | 739 | 1,570 | 3,253 | (68,927) | 3,253 | |
Adjusted net income - Non-GAAP | $10,445 | $10,981 | $10,076 | $9,366 | $9,694 | $40,868 | $44,923 | |
Net (loss) income available to common shareholders, as reported - GAAP | ($60,776) | $10,973 | $10,807 | $10,924 | $12,931 | ($28,038) | $48,091 | |
Less: adjustments, after-tax | (71,221) | — | 738 | 1,568 | 3,248 | (68,907) | 3,249 | |
Adjusted net income available to common shareholders - Non-GAAP | $10,445 | $10,973 | $10,069 | $9,356 | $9,683 | $40,869 | $44,842 | |
Diluted (loss) earnings per common share, as reported - GAAP | ($3.46) | $0.64 | $0.63 | $0.64 | $0.76 | ($1.63) | $2.82 | |
Less: impact of adjustments | 4.05 | — | (0.04) | (0.09) | (0.19) | 4.00 | (0.19) | |
Adjusted diluted earnings per common share - Non-GAAP | $0.59 | $0.64 | $0.59 | $0.55 | $0.57 | $2.37 | $2.63 | |
Efficiency ratio, as reported - GAAP | (76.3 %) | 71.1 % | 70.3 % | 70.4 % | 70.9 % | 136.2 % | 69.1 % | |
Less: impact of adjustments | (146.3) | — | (1.5) | (3.1) | — | 64.6 | — | |
Adjusted efficiency ratio - Non-GAAP | 70.0 % | 71.1 % | 71.8 % | 73.5 % | 70.9 % | 71.6 % | 69.1 % | |
Washington Trust Bancorp, Inc. and Subsidiaries | ||||||||
SUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures (continued) | ||||||||
(Unaudited; Dollars in thousands, except per share amounts) | ||||||||
For the Three Months Ended | For the Twelve Months Ended | |||||||
Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | Dec 31, | Dec 31, | ||
Net (loss) income, as reported - GAAP | ($60,791) | $10,981 | $10,815 | $10,936 | $12,947 | ($28,059) | $48,176 | |
Less: adjustments, after-tax | (71,236) | — | 739 | 1,570 | 3,253 | (68,927) | 3,253 | |
Adjusted net income - Non-GAAP | 10,445 | 10,981 | 10,076 | 9,366 | 9,694 | 40,868 | 44,923 | |
Total average assets, as reported - GAAP | 7,011,839 | 7,254,566 | 7,227,478 | 7,231,835 | 7,191,575 | 7,181,162 | 6,999,040 | |
Return on average assets - GAAP | (3.45 %) | 0.60 % | 0.60 % | 0.61 % | 0.71 % | (0.39 %) | 0.69 % | |
Adjusted return on average assets - Non-GAAP | 0.59 % | 0.60 % | 0.56 % | 0.52 % | 0.53 % | 0.57 % | 0.64 % | |
Adjusted net income - Non-GAAP | $10,445 | $10,981 | $10,076 | $9,366 | $9,694 | $40,868 | $44,923 | |
Total average assets, as reported - GAAP | 7,011,839 | 7,254,566 | 7,227,478 | 7,231,835 | 7,191,575 | 7,181,162 | 6,999,040 | |
Less average balances of: | ||||||||
Goodwill | 63,909 | 63,909 | 63,909 | 63,909 | 63,909 | 63,909 | 63,909 | |
Identifiable intangible assets, net | 2,984 | 3,189 | 3,397 | 3,604 | 3,812 | 3,292 | 4,126 | |
Total average tangible assets - GAAP | 6,944,946 | 7,187,468 | 7,160,172 | 7,164,322 | 7,123,854 | 7,113,961 | 6,931,005 | |
Return on average assets - GAAP | (3.45 %) | 0.60 % | 0.60 % | 0.61 % | 0.71 % | (0.39 %) | 0.69 % | |
Return on average tangible assets - Non-GAAP | 0.60 % | 0.61 % | 0.57 % | 0.53 % | 0.54 % | 0.57 % | 0.65 % | |
Net (loss) income available to common shareholders, as reported - GAAP | ($60,776) | $10,973 | $10,807 | $10,924 | $12,931 | ($28,038) | $48,091 | |
Less: adjustments, after-tax | (71,221) | — | 738 | 1,568 | 3,248 | (68,907) | 3,249 | |
Adjusted net income available to common shareholders - Non-GAAP | 10,445 | 10,973 | 10,069 | 9,356 | 9,683 | 40,869 | 44,842 | |
Total average equity, as reported - GAAP | 501,099 | 485,654 | 460,959 | 471,096 | 436,059 | 479,777 | 455,044 | |
Return on average equity - GAAP | (48.25 %) | 8.99 % | 9.43 % | 9.33 % | 11.77 % | (5.84 %) | 10.57 % | |
Adjusted return on average equity - Non-GAAP | 8.29 % | 8.99 % | 8.79 % | 7.99 % | 8.81 % | 8.52 % | 9.85 % | |
Adjusted net income available to common shareholders - Non-GAAP | $10,445 | $10,973 | $10,069 | $9,356 | $9,683 | $40,869 | $44,842 | |
Total average equity, as reported - GAAP | 501,099 | 485,654 | 460,959 | 471,096 | 436,059 | 479,777 | 455,044 | |
Less average balances of: | ||||||||
Goodwill | 63,909 | 63,909 | 63,909 | 63,909 | 63,909 | 63,909 | 63,909 | |
Identifiable intangible assets, net | 2,984 | 3,189 | 3,397 | 3,604 | 3,812 | 3,292 | 4,126 | |
Total average tangible equity - Non-GAAP | 434,206 | 418,556 | 393,653 | 403,583 | 368,338 | 412,576 | 387,009 | |
Return on average equity - GAAP | (48.25 %) | 8.99 % | 9.43 % | 9.33 % | 11.77 % | (5.84 %) | 10.57 % | |
Return on average tangible equity - Non-GAAP | 9.57 % | 10.43 % | 10.29 % | 9.32 % | 10.43 % | 9.91 % | 11.59 % | |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||
SUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures (continued) | |||||
(Unaudited; Dollars in thousands, except per share amounts) | |||||
Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | |
Total shareholders' equity, as reported - GAAP | $499,728 | $502,229 | $470,957 | $466,920 | $472,686 |
Less end of period balances of: | |||||
Goodwill | 63,909 | 63,909 | 63,909 | 63,909 | 63,909 |
Identifiable intangible assets, net | 2,885 | 3,089 | 3,295 | 3,503 | 3,711 |
Total tangible shareholders' equity - Non-GAAP | 432,934 | 435,231 | 403,753 | 399,508 | 405,066 |
Shares outstanding, as reported - GAAP | 19,274 | 17,058 | 17,058 | 17,033 | 17,031 |
Book value per share - GAAP | $25.93 | $29.44 | $27.61 | $27.41 | $27.75 |
Tangible book value per share - Non-GAAP | $22.46 | $25.51 | $23.67 | $23.45 | $23.78 |
Total tangible shareholders' equity - Non-GAAP | $432,934 | $435,231 | $403,753 | $399,508 | $405,066 |
Total assets, as reported - GAAP | 6,930,647 | 7,141,571 | 7,184,360 | 7,249,124 | 7,202,847 |
Less end of period balances of: | |||||
Goodwill | 63,909 | 63,909 | 63,909 | 63,909 | 63,909 |
Identifiable intangible assets, net | 2,885 | 3,089 | 3,295 | 3,503 | 3,711 |
Total tangible assets - Non-GAAP | 6,863,853 | 7,074,573 | 7,117,156 | 7,181,712 | 7,135,227 |
Equity to assets - GAAP | 7.21 % | 7.03 % | 6.56 % | 6.44 % | 6.56 % |
Tangible equity to tangible assets - Non-GAAP | 6.31 % | 6.15 % | 5.67 % | 5.56 % | 5.68 % |
Category: Earnings
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SOURCE Washington Trust Bancorp, Inc.