Washington Trust Reports Fourth Quarter and Full-Year 2024 Results

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January 29, 2025 4:05 PM EST

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,
2024

Sep 30,
2024

Jun 30,
2024

Mar 31,
2024

Dec 31,
2023

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,
2024

Sep 30,
2024

Jun 30,
2024

Mar 31,
2024

Dec 31,
2023


Dec 31,
2024

Dec 31,
2023

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,
2024

Sep 30,
2024

Jun 30,
2024

Mar 31,
2024

Dec 31,
2023

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,
2024

Sep 30,
2024

Jun 30,
2024

Mar 31,
2024

Dec 31,
2023


Dec 31,
2024

Dec 31,
2023

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,
2024

Sep 30,
2024

Jun 30,
2024

Mar 31,
2024

Dec 31,
2023


Dec 31,
2024

Dec 31,
2023

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,
2024

Sep 30,
2024

Jun 30,
2024

Mar 31,
2024

Dec 31,
2023

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
(2) (3)

Average

 Loan

Size (4)

Loan to
Value

Debt

 Service
Coverage


Pass

Special
Mention

Classified


Nonaccrual
(included in
Classified)

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,
2024

Sep 30,
2024

Jun 30,
2024

Mar 31,
2024

Dec 31,
2023

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
Deposits


Balance

% of Total
Deposits

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,
2024

Dec 31,
2023

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,
2024

Sep 30,
2024

Jun 30,
2024

Mar 31,
2024

Dec 31,
2023

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,
2024

Sep 30,
2024

Jun 30,
2024

Mar 31,
2024

Dec 31,
2023


Dec 31,
2024

Dec 31,
2023

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,
2024

Sep 30,
2024

Jun 30,
2024

Mar 31,
2024

Dec 31,
2023


Dec 31,
2024

Dec 31,
2023

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
Balance

Interest

Yield/

Rate


Average
Balance

Interest

Yield/

Rate


Average
Balance

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
Balance

Interest

Yield/

Rate

Average
Balance

Interest

Yield/

 Rate

Average
Balance

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,
2024

Sep 30,
2024

Jun 30,
2024

Mar 31,
2024

Dec 31,
2023


Dec 31,
2024

Dec 31,
2023

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,
2024

Sep 30,
2024

Jun 30,
2024

Mar 31,
2024

Dec 31,
2023


Dec 31,
2024

Dec 31,
2023

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,
2024

Sep 30,
2024

Jun 30,
2024

Mar 31,
2024

Dec 31,
2023

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

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/washington-trust-reports-fourth-quarter-and-full-year-2024-results-302363646.html

SOURCE Washington Trust Bancorp, Inc.


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