WESTERLY, R.I., April 22,
2024 /PRNewswire/ -- Washington Trust Bancorp, Inc.
(Nasdaq: WASH), parent company of The Washington Trust Company,
today announced first quarter 2024 net income of $10.9 million, or $0.64 per diluted share, compared to net income
of $12.9 million, or $0.76 per diluted share, for the fourth quarter
of 2023.
"Washington Trust's first quarter performance reflects the
importance of our diversified business model, as we were able to
generate solid noninterest income while faced with continued margin
pressure associated with higher funding costs," stated Edward O. Handy III, Washington Trust Chairman
and Chief Executive Officer. "We remain focused on managing
the balance sheet, maintaining credit quality, and prudently
overseeing expenses to ensure we are adequately positioned to meet
the challenges ahead."
Selected financial highlights for the first quarter of 2024
include:
- Returns on average equity and average assets for the first
quarter were 9.33% and 0.61%, respectively, compared to 11.77% and
0.71%, respectively for the preceding quarter.
- The net interest margin was 1.84% in the first quarter,
compared to 1.88% in the preceding quarter.
- In the first quarter, a provision for credit losses of
$700 thousand was recognized, down by
$500 thousand from the provision
recognized in the preceding quarter.
- Wealth management revenues amounted to $9.3 million in the first quarter, up by
$457 thousand, or 5%, from the
preceding quarter.
- Mortgage banking revenues totaled $2.5
million for the first quarter, up by $952 thousand, or 61%, from the preceding
quarter.
- Total loans amounted to $5.7
billion, up by $38 million, or
1%, from the end of the preceding quarter.
- In-market deposits (total deposits less wholesale brokered
deposits) amounted to $4.7 billion,
down by $20 million, or 0.4%, from
December 31, 2023.
Net Interest Income
Net interest income was $31.7 million
for the first quarter of 2024, down by $989
thousand, or 3%, from the fourth quarter of 2023. The
net interest margin was 1.84% for the first quarter, a decrease of
4 basis points from the preceding quarter. These
declines reflected the continuation of higher funding costs, which
outpaced increases in asset yields. Linked quarter changes
included:
- Average interest-earning assets increased by $23 million, due to an increase of $46 million in average loans, partially offset by
a decline in the average balance of investment securities. The
yield on interest-earning assets for the first quarter was 4.93%,
up by 12 basis points from the preceding quarter.
- Average interest-bearing liabilities increased by $100 million as average wholesale funding
balances increased by $122 million
while average in-market deposits decreased by $21 million. The cost of interest-bearing
liabilities for the first quarter of 2024 was 3.63%, up by 14 basis
points from the preceding quarter.
Noninterest Income
Noninterest income totaled $17.2
million for the first quarter of 2024, up by $3.9 million, or 29%, from the fourth quarter of
2023. Included in other noninterest income in the first
quarter of 2024 was $2.1 million
associated with a litigation settlement. Excluding this item,
noninterest income was up by $1.8
million, or 13%, from the preceding quarter. Linked
quarter changes included:
- Wealth management revenues amounted to $9.3 million in the first quarter of 2024, up by
$457 thousand, or 5%, on a linked
quarter basis. This correlated with an increase in the average
balance of wealth management assets under administration ("AUA"),
which was up by approximately $427
million, or 7%, from the preceding quarter.
The end of period AUA balance at March 31,
2024 amounted to $6.9 billion,
up by $270 million, or 4%, from
December 31, 2023. This increase
reflected net investment appreciation of $364 million, partially offset by net client
asset outflows of $94 million.
- Mortgage banking revenues totaled $2.5
million for the first quarter of 2024, up by $952 thousand, or 61%, from the preceding
quarter, reflecting higher realized gains on loan sales, as well as
a positive change in the fair value of mortgage loans held for sale
and forward loan commitments. Realized gains increased by
$453 thousand, or 40%, from the
preceding quarter, due to a higher sales yield, as well as a higher
volume of loans sold. Loans sold amounted to $72.6 million in the first quarter of 2024, up by
$5.2 million, or 8%, from the
preceding quarter. In the first quarter of 2024, 76% of residential
real estate loan originations were originated for sale, compared to
66% in the preceding quarter.
Noninterest Expense
Noninterest expense totaled $34.4
million for the first quarter of 2024, up by $1.8 million, or 5%, from the fourth quarter of
2023. Linked quarter changes included:
- Salaries and employee benefits expense amounted to $21.8 million, up by $3.3
million, or 18%. In the preceding quarter, performance-based
compensation accruals were reduced by $3.4
million. Excluding this item, salaries and employee benefits
expense was essentially flat on a linked quarter basis.
- Other noninterest expenses totaled $2.3
million, down by $1.3 million,
or 35%, from the preceding quarter, largely due to a $1.0 million contribution made by Washington
Trust to its charitable foundation in the fourth quarter of
2023.
Income Tax
In the first quarter of 2024, income tax expense totaled
$2.8 million, reflecting an effective
tax rate of 20.6%. In the preceding quarter, an income tax
benefit of $774 thousand was recognized, reflecting an
effective rate of negative 6.4%. In the fourth quarter of
2023, income tax expense was reduced by a net $3.3 million adjustment to net deferred tax
assets that was largely associated with an enacted change in state
tax law. Excluding this adjustment, the effective tax rate
for the fourth quarter of 2023 would have been 20.4%. Based
on current federal and applicable state income tax statutes, the
Corporation currently expects its full-year 2024 effective tax rate
to be approximately 21.0%.
Investment Securities
The securities portfolio totaled $970 million at
March 31, 2024, down by $30 million, or 3%, from
December 31, 2023, reflecting a decrease of
$15 million in the fair value of available for sale debt
securities due to changes in market interest rates, as well as
routine pay-downs and maturities. The securities portfolio
represented 13% of total assets at March 31, 2024, compared to
14% of total assets at December 31, 2023.
Loans
Total loans amounted to $5.7 billion at March 31, 2024, up by
$38 million, or 1%, from the end of
the preceding quarter. These changes included:
- Commercial loans increased by $60
million, or 2%, from December 31,
2023, reflecting advances and originations of $108 million, partially offset by principal
payments of $48 million.
- Residential real estate loans decreased by $19 million, or 0.7%, from December 31, 2023. In the first quarter of 2024,
residential real estate loans originated for portfolio amounted to
$24 million, down by $15 million, or 39%, from the preceding
quarter.
- The consumer loan portfolio decreased by $4 million, or 1%, from December 31, 2023, largely reflecting a decrease
in home equity lines.
Deposits and Borrowings
Total deposits amounted to $5.3 billion at both March 31, 2024 and
December 31, 2023. Uninsured deposits, after exclusions
(as detailed in the financial tables below) amounted to
$965 million, or 18% of total
deposits, at March 31, 2024.
In-market deposits, which exclude wholesale brokered deposits,
amounted to $4.7 billion at
March 31, 2024, down by $20 million, or 0.4%, from
December 31, 2023. As of March 31, 2024, in-market
deposits were approximately 61% retail and 39% commercial.
The average size of our in-market deposit accounts was
approximately $36 thousand at March 31, 2024.
Wholesale brokered deposits amounted to $674 million and
were up by $20 million, or 3%, from December 31,
2023.
FHLB advances totaled $1.2 billion at March 31, 2024, up by
$50 million, or 4%, from December 31, 2023. As of
March 31, 2024, contingent liquidity amounted to $1.8 billion and consisted of
noninterest-bearing cash, unencumbered securities, and unused
collateralized borrowing capacity.
Asset Quality
Nonaccrual loans were $30.7 million, or 0.54% of total loans, at
March 31, 2024, compared to $44.6 million, or 0.79% of total loans, at
December 31, 2023. The decrease in nonaccrual loans was
largely due to one commercial real estate loan that returned to
accruing status in the quarter. The composition of nonaccrual
loans at March 31, 2024 was 63% commercial and 37% residential
and consumer.
Past due loans were $10.0 million,
or 0.18% of total loans, at March 31, 2024, compared to
$11.3 million, or 0.20% of total
loans, at December 31, 2023. The composition of past due
loans at March 31, 2024 was largely concentrated in the
residential and consumer loan portfolios.
The allowance for credit losses ("ACL") on loans amounted to
$41.9 million, or 0.74% of total
loans, at March 31, 2024, compared to $41.1 million, or 0.73% of total loans, at
December 31, 2023. The ACL on unfunded commitments,
included in other liabilities on the Consolidated Balance Sheets,
was $1.7 million at
March 31, 2024, compared to $1.9 million at December 31, 2023.
The provision for credit losses totaled $700 thousand in
the first quarter of 2024, down by $500 thousand from the
preceding quarter. The provision for credit losses in the
first quarter of 2024 was composed of a provision for credit losses
on loans of $900 thousand and a negative provision (or a
benefit) for credit losses on unfunded commitments of
$200 thousand. Net charge-offs amounted to
$52 thousand in the first quarter of 2024, compared to
$406 thousand in the preceding quarter.
Capital and Dividends
Total shareholders' equity was $466.9 million at March 31, 2024, down
by $5.8 million, or 1%, from
December 31, 2023. Net income of $10.9 million was offset by $9.7 million in dividend declarations and a
decline of $7.8 million in the
accumulated other comprehensive income ("AOCI") component of
shareholders' equity. The decline in AOCI largely reflected a
decrease in the fair value of available for sale debt securities
due to changes in market interest rates.
The Board of Directors declared a quarterly dividend of
56 cents per share for the quarter ended March 31,
2024. The dividend was paid on April 12, 2024 to
shareholders of record on April 1, 2024.
Capital levels at March 31, 2024 exceeded the regulatory
minimum levels to be considered well capitalized, with a total
risk-based capital ratio of 11.62% at March 31, 2024, compared
to 11.58% at December 31, 2023. Book value per share was
$27.41 at March 31, 2024,
compared to $27.75 at
December 31, 2023.
Conference Call
Washington Trust will host a conference call to discuss its first
quarter results, business highlights, and outlook on Monday, April 22, 2024 at 10:00 a.m. (Eastern Time). Individuals may
dial in to the call at 1-833-470-1428 and enter Access Code
041815. 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 539231. The audio replay
will be available through May 6,
2024. 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
June 30, 2024.
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 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)
|
|
|
|
|
|
|
|
Mar 31,
2024
|
Dec 31,
2023
|
Sep 30,
2023
|
Jun 30,
2023
|
Mar 31,
2023
|
Assets:
|
|
|
|
|
|
Cash and due from
banks
|
$102,136
|
$86,824
|
$109,432
|
$124,877
|
$134,989
|
Short-term
investments
|
3,452
|
3,360
|
3,577
|
3,439
|
3,291
|
Mortgage loans held for
sale, at fair value
|
25,462
|
20,077
|
10,550
|
20,872
|
7,445
|
Available for sale debt
securities, at fair value
|
970,060
|
1,000,380
|
958,990
|
1,022,458
|
1,054,747
|
Federal Home Loan Bank
stock, at cost
|
55,512
|
51,893
|
52,668
|
45,868
|
42,501
|
Loans:
|
|
|
|
|
|
Total loans
|
5,685,232
|
5,647,706
|
5,611,115
|
5,381,113
|
5,227,969
|
Less: allowance for
credit losses on loans
|
41,905
|
41,057
|
40,213
|
39,343
|
38,780
|
Net loans
|
5,643,327
|
5,606,649
|
5,570,902
|
5,341,770
|
5,189,189
|
Premises and equipment,
net
|
31,914
|
32,291
|
31,976
|
32,591
|
31,719
|
Operating lease
right-of-use assets
|
29,216
|
29,364
|
27,882
|
28,633
|
26,170
|
Investment in
bank-owned life insurance
|
104,475
|
103,736
|
103,003
|
102,293
|
101,782
|
Goodwill
|
63,909
|
63,909
|
63,909
|
63,909
|
63,909
|
Identifiable intangible
assets, net
|
3,503
|
3,711
|
3,919
|
4,130
|
4,342
|
Other assets
|
216,158
|
200,653
|
246,667
|
220,920
|
199,098
|
Total assets
|
$7,249,124
|
$7,202,847
|
$7,183,475
|
$7,011,760
|
$6,859,182
|
Liabilities:
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
Noninterest-bearing
deposits
|
$648,929
|
$693,746
|
$773,261
|
$758,242
|
$829,763
|
Interest-bearing
deposits
|
4,698,964
|
4,654,414
|
4,642,302
|
4,556,236
|
4,438,751
|
Total
deposits
|
5,347,893
|
5,348,160
|
5,415,563
|
5,314,478
|
5,268,514
|
Federal Home Loan Bank
advances
|
1,240,000
|
1,190,000
|
1,120,000
|
1,040,000
|
925,000
|
Junior subordinated
debentures
|
22,681
|
22,681
|
22,681
|
22,681
|
22,681
|
Operating lease
liabilities
|
31,837
|
32,027
|
30,554
|
31,302
|
28,622
|
Other
liabilities
|
139,793
|
137,293
|
163,273
|
144,138
|
149,382
|
Total
liabilities
|
6,782,204
|
6,730,161
|
6,752,071
|
6,552,599
|
6,394,199
|
Shareholders'
Equity:
|
|
|
|
|
|
Common stock
|
1,085
|
1,085
|
1,085
|
1,085
|
1,085
|
Paid-in
capital
|
126,785
|
126,150
|
126,310
|
125,685
|
127,734
|
Retained
earnings
|
503,175
|
501,917
|
498,521
|
496,996
|
495,231
|
Accumulated other
comprehensive loss
|
(148,913)
|
(141,153)
|
(178,734)
|
(148,827)
|
(141,760)
|
Treasury stock, at
cost
|
(15,212)
|
(15,313)
|
(15,778)
|
(15,778)
|
(17,307)
|
Total shareholders'
equity
|
466,920
|
472,686
|
431,404
|
459,161
|
464,983
|
Total liabilities and
shareholders' equity
|
$7,249,124
|
$7,202,847
|
$7,183,475
|
$7,011,760
|
$6,859,182
|
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
|
|
Mar 31,
2024
|
Dec 31,
2023
|
Sep 30,
2023
|
Jun 30,
2023
|
Mar 31,
2023
|
Interest
income:
|
|
|
|
|
|
Interest and fees on
loans
|
$75,636
|
$74,236
|
$70,896
|
$65,449
|
$59,749
|
Interest on mortgage
loans held for sale
|
255
|
255
|
332
|
241
|
152
|
Taxable interest on
debt securities
|
7,096
|
7,191
|
7,271
|
7,403
|
7,194
|
Dividends on Federal
Home Loan Bank stock
|
1,073
|
982
|
878
|
858
|
597
|
Other interest
income
|
1,196
|
1,282
|
1,344
|
1,279
|
1,070
|
Total interest and
dividend income
|
85,256
|
83,946
|
80,721
|
75,230
|
68,762
|
Interest
expense:
|
|
|
|
|
|
Deposits
|
38,047
|
37,067
|
34,069
|
29,704
|
19,589
|
Federal Home Loan Bank
advances
|
15,138
|
13,814
|
12,497
|
11,652
|
11,626
|
Junior subordinated
debentures
|
406
|
411
|
404
|
374
|
354
|
Total interest
expense
|
53,591
|
51,292
|
46,970
|
41,730
|
31,569
|
Net interest
income
|
31,665
|
32,654
|
33,751
|
33,500
|
37,193
|
Provision for credit
losses
|
700
|
1,200
|
500
|
700
|
800
|
Net interest income
after provision for credit losses
|
30,965
|
31,454
|
33,251
|
32,800
|
36,393
|
Noninterest
income:
|
|
|
|
|
|
Wealth management
revenues
|
9,338
|
8,881
|
8,948
|
9,048
|
8,663
|
Mortgage banking
revenues
|
2,506
|
1,554
|
2,108
|
1,753
|
1,245
|
Card interchange
fees
|
1,145
|
1,254
|
1,267
|
1,268
|
1,132
|
Service charges on
deposit accounts
|
685
|
688
|
674
|
667
|
777
|
Loan related derivative
income
|
284
|
112
|
1,082
|
247
|
(51)
|
Income from bank-owned
life insurance
|
739
|
734
|
710
|
879
|
1,165
|
Other income
|
2,466
|
83
|
437
|
463
|
352
|
Total noninterest
income
|
17,163
|
13,306
|
15,226
|
14,325
|
13,283
|
Noninterest
expense:
|
|
|
|
|
|
Salaries and employee
benefits
|
21,775
|
18,464
|
21,622
|
20,588
|
21,784
|
Outsourced
services
|
3,780
|
3,667
|
3,737
|
3,621
|
3,496
|
Net
occupancy
|
2,561
|
2,396
|
2,387
|
2,416
|
2,437
|
Equipment
|
1,020
|
1,133
|
1,107
|
1,050
|
1,028
|
Legal, audit, and
professional fees
|
706
|
959
|
1,058
|
978
|
896
|
FDIC deposit insurance
costs
|
1,441
|
1,239
|
1,185
|
1,371
|
872
|
Advertising and
promotion
|
548
|
938
|
789
|
427
|
408
|
Amortization of
intangibles
|
208
|
208
|
211
|
212
|
212
|
Other
expenses
|
2,324
|
3,583
|
2,294
|
2,353
|
2,431
|
Total noninterest
expense
|
34,363
|
32,587
|
34,390
|
33,016
|
33,564
|
Income before income
taxes
|
13,765
|
12,173
|
14,087
|
14,109
|
16,112
|
Income tax expense
(benefit)
|
2,829
|
(774)
|
2,926
|
2,853
|
3,300
|
Net income
|
$10,936
|
$12,947
|
$11,161
|
$11,256
|
$12,812
|
|
|
|
|
|
|
Net income available to
common shareholders
|
$10,924
|
$12,931
|
$11,140
|
$11,237
|
$12,783
|
|
|
|
|
|
|
Weighted average common
shares outstanding:
|
|
|
|
|
|
Basic
|
17,033
|
17,029
|
17,019
|
17,011
|
17,074
|
Diluted
|
17,074
|
17,070
|
17,041
|
17,030
|
17,170
|
Earnings per common
share:
|
|
|
|
|
|
Basic
|
$0.64
|
$0.76
|
$0.65
|
$0.66
|
$0.75
|
Diluted
|
$0.64
|
$0.76
|
$0.65
|
$0.66
|
$0.74
|
|
|
|
|
|
|
Cash dividends declared
per share
|
$0.56
|
$0.56
|
$0.56
|
$0.56
|
$0.56
|
Washington Trust
Bancorp, Inc. and Subsidiaries
|
SELECTED FINANCIAL
HIGHLIGHTS
|
(Unaudited; Dollars and
shares in thousands, except per share amounts)
|
|
|
|
Mar 31,
2024
|
Dec 31,
2023
|
Sep 30,
2023
|
Jun 30,
2023
|
Mar 31,
2023
|
Share and Equity
Related Data:
|
|
|
|
|
|
Book value per
share
|
$27.41
|
$27.75
|
$25.35
|
$26.98
|
$27.37
|
Tangible book value per
share - Non-GAAP (1)
|
$23.45
|
$23.78
|
$21.36
|
$22.98
|
$23.36
|
Market value per
share
|
$26.88
|
$32.38
|
$26.33
|
$26.81
|
$34.66
|
Shares issued at end of
period
|
17,363
|
17,363
|
17,363
|
17,363
|
17,363
|
Shares outstanding at
end of period
|
17,033
|
17,031
|
17,019
|
17,019
|
16,986
|
|
|
|
|
|
|
Capital Ratios
(2):
|
|
|
|
|
|
Tier 1 risk-based
capital
|
10.84 %
|
10.86 %
|
10.77 %
|
11.09 %
|
11.28 %
|
Total risk-based
capital
|
11.62 %
|
11.58 %
|
11.48 %
|
11.81 %
|
12.01 %
|
Tier 1 leverage
ratio
|
7.81 %
|
7.80 %
|
7.87 %
|
8.05 %
|
8.25 %
|
Common equity tier
1
|
10.42 %
|
10.44 %
|
10.35 %
|
10.66 %
|
10.84 %
|
|
|
|
|
|
|
Balance Sheet
Ratios:
|
|
|
|
|
|
Equity to
assets
|
6.44 %
|
6.56 %
|
6.01 %
|
6.55 %
|
6.78 %
|
Tangible equity to
tangible assets - Non-GAAP (1)
|
5.56 %
|
5.68 %
|
5.11 %
|
5.63 %
|
5.84 %
|
Loans to
deposits (3)
|
106.0 %
|
105.2 %
|
103.1 %
|
100.9 %
|
98.6 %
|
|
For the Three Months
Ended
|
|
Mar 31,
2024
|
Dec 31,
2023
|
Sep 30,
2023
|
Jun 30,
2023
|
Mar 31,
2023
|
Performance
Ratios (4):
|
|
|
|
|
|
Net interest
margin (5)
|
1.84 %
|
1.88 %
|
1.97 %
|
2.03 %
|
2.33 %
|
Return on average
assets (net income divided by average assets)
|
0.61 %
|
0.71 %
|
0.62 %
|
0.65 %
|
0.77 %
|
Return on average
tangible assets - Non-GAAP (1)
|
0.61 %
|
0.72 %
|
0.63 %
|
0.66 %
|
0.78 %
|
Return on average
equity (net income available for common shareholders divided by
average equity)
|
9.33 %
|
11.77 %
|
9.65 %
|
9.67 %
|
11.27 %
|
Return on average
tangible equity - Non-GAAP (1)
|
10.89 %
|
13.93 %
|
11.33 %
|
11.32 %
|
13.23 %
|
Efficiency ratio
(6)
|
70.4 %
|
70.9 %
|
70.2 %
|
69.0 %
|
66.5 %
|
|
|
(1)
|
See the section labeled
"Supplemental Information - Calculation of Non-GAAP Financial
Measures" at the end of this document.
|
(2)
|
Estimated for March 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)
|
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
|
|
Mar 31,
2024
|
Dec 31,
2023
|
Sep 30,
2023
|
Jun 30,
2023
|
Mar 31,
2023
|
Wealth Management
Results
|
|
|
|
|
|
Wealth Management
Revenues:
|
|
|
|
|
|
Asset-based
revenues
|
$9,089
|
$8,634
|
$8,683
|
$8,562
|
$8,429
|
Transaction-based
revenues
|
249
|
247
|
265
|
486
|
234
|
Total wealth management
revenues
|
$9,338
|
$8,881
|
$8,948
|
$9,048
|
$8,663
|
|
|
|
|
|
|
Assets Under
Administration (AUA):
|
|
|
|
|
|
Balance at beginning of
period
|
$6,588,406
|
$6,131,395
|
$6,350,260
|
$6,163,422
|
$5,961,990
|
Net investment
appreciation (depreciation) & income
|
364,244
|
503,209
|
(154,269)
|
259,788
|
286,262
|
Net client asset
outflows
|
(94,328)
|
(46,198)
|
(64,596)
|
(72,950)
|
(84,830)
|
Balance at end of
period
|
$6,858,322
|
$6,588,406
|
$6,131,395
|
$6,350,260
|
$6,163,422
|
|
|
|
|
|
|
Percentage of AUA that
are managed assets
|
91 %
|
91 %
|
91 %
|
91 %
|
91 %
|
|
|
|
|
|
|
Mortgage Banking
Results
|
|
|
|
|
|
Mortgage Banking
Revenues:
|
|
|
|
|
|
Realized gains on loan
sales, net (1)
|
$1,586
|
$1,133
|
$1,746
|
$827
|
$576
|
Changes in fair value,
net (2)
|
324
|
(65)
|
(171)
|
382
|
86
|
Loan servicing fee
income, net (3)
|
596
|
486
|
533
|
544
|
583
|
Total mortgage banking
revenues
|
$2,506
|
$1,554
|
$2,108
|
$1,753
|
$1,245
|
|
|
|
|
|
|
Residential Mortgage
Loan Originations:
|
|
|
|
|
|
Originations for
retention in portfolio (4)
|
$24,474
|
$39,827
|
$161,603
|
$148,694
|
$109,768
|
Originations for sale
to secondary market (5)
|
78,098
|
76,495
|
78,339
|
77,995
|
27,763
|
Total mortgage loan
originations
|
$102,572
|
$116,322
|
$239,942
|
$226,689
|
$137,531
|
|
|
|
|
|
|
Residential Mortgage
Loans Sold:
|
|
|
|
|
|
Sold with servicing
rights retained
|
$24,057
|
$28,290
|
$34,046
|
$28,727
|
$17,114
|
Sold with servicing
rights released (5)
|
48,587
|
39,170
|
54,575
|
35,836
|
12,214
|
Total mortgage loans
sold
|
$72,644
|
$67,460
|
$88,621
|
$64,563
|
$29,328
|
|
|
(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)
|
|
|
|
Mar 31,
2024
|
Dec 31,
2023
|
Sep 30,
2023
|
Jun 30,
2023
|
Mar 31,
2023
|
Loans:
|
|
|
|
|
|
Commercial real
estate (1)
|
$2,158,518
|
$2,106,359
|
$2,063,383
|
$1,940,030
|
$1,909,136
|
Commercial &
industrial
|
613,376
|
605,072
|
611,565
|
611,472
|
609,720
|
Total
commercial
|
2,771,894
|
2,711,431
|
2,674,948
|
2,551,502
|
2,518,856
|
|
|
|
|
|
|
Residential real
estate (2)
|
2,585,524
|
2,604,478
|
2,611,100
|
2,510,125
|
2,403,255
|
|
|
|
|
|
|
Home equity
|
309,302
|
312,594
|
305,683
|
301,116
|
288,878
|
Other
|
18,512
|
19,203
|
19,384
|
18,370
|
16,980
|
Total
consumer
|
327,814
|
331,797
|
325,067
|
319,486
|
305,858
|
Total loans
|
$5,685,232
|
$5,647,706
|
$5,611,115
|
$5,381,113
|
$5,227,969
|
|
|
(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.
|
|
March 31,
2024
|
|
December 31,
2023
|
|
Balance
|
% of Total
|
|
Balance
|
% of Total
|
Commercial Real
Estate Loans by Property Location:
|
|
|
|
|
|
Connecticut
|
$832,389
|
39 %
|
|
$815,975
|
39 %
|
Massachusetts
|
681,803
|
32
|
|
645,736
|
31
|
Rhode Island
|
428,030
|
19
|
|
430,899
|
20
|
Subtotal
|
1,942,222
|
90
|
|
1,892,610
|
90
|
All other
states
|
216,296
|
10
|
|
213,749
|
10
|
Total commercial real
estate loans
|
$2,158,518
|
100 %
|
|
$2,106,359
|
100 %
|
|
|
|
|
|
|
Residential Real
Estate Loans by Property Location:
|
|
|
|
|
|
Massachusetts
|
$1,910,010
|
74 %
|
|
$1,928,206
|
74 %
|
Rhode Island
|
484,401
|
19
|
|
481,289
|
19
|
Connecticut
|
162,523
|
6
|
|
165,933
|
6
|
Subtotal
|
2,556,934
|
99
|
|
2,575,428
|
99
|
All other
states
|
28,590
|
1
|
|
29,050
|
1
|
Total residential real
estate loans
|
$2,585,524
|
100 %
|
|
$2,604,478
|
100 %
|
Washington Trust
Bancorp, Inc. and Subsidiaries
|
END OF PERIOD LOAN
COMPOSITION
|
(Unaudited; Dollars
in thousands)
|
|
|
|
|
|
|
|
March 31,
2024
|
|
December 31,
2023
|
|
Balance
|
% of Total
|
|
Balance
|
% of Total
|
Commercial Real
Estate Portfolio Segmentation:
|
|
|
|
|
|
Multi-family
|
$574,284
|
27 %
|
|
$546,694
|
26 %
|
Retail
|
438,422
|
20
|
|
434,913
|
21
|
Industrial and
warehouse
|
325,695
|
15
|
|
307,987
|
15
|
Office
|
284,675
|
13
|
|
284,199
|
13
|
Hospitality
|
225,608
|
10
|
|
235,015
|
11
|
Healthcare
Facility
|
196,117
|
9
|
|
175,490
|
8
|
Mixed-use
|
52,853
|
2
|
|
49,079
|
2
|
Other
|
60,864
|
4
|
|
72,982
|
4
|
Total commercial real
estate loans
|
$2,158,518
|
100 %
|
|
$2,106,359
|
100 %
|
|
|
|
|
|
|
Commercial &
Industrial Portfolio Segmentation:
|
|
|
|
|
|
Healthcare and social
assistance
|
$167,491
|
27 %
|
|
$166,490
|
28 %
|
Real estate rental and
leasing
|
71,292
|
12
|
|
70,540
|
12
|
Transportation and
warehousing
|
63,664
|
10
|
|
63,789
|
11
|
Manufacturing
|
53,348
|
9
|
|
54,905
|
9
|
Retail trade
|
44,166
|
7
|
|
43,746
|
7
|
Educational
services
|
41,566
|
7
|
|
41,968
|
7
|
Finance and
insurance
|
37,810
|
6
|
|
33,617
|
6
|
Information
|
22,645
|
4
|
|
22,674
|
4
|
Arts, entertainment,
and recreation
|
21,935
|
4
|
|
22,249
|
4
|
Accommodation and food
services
|
12,833
|
2
|
|
13,502
|
2
|
Professional,
scientific, and technical services
|
8,640
|
1
|
|
7,998
|
1
|
Public
administration
|
2,955
|
—
|
|
3,019
|
—
|
Other
|
65,031
|
11
|
|
60,575
|
9
|
Total commercial &
industrial loans
|
$613,376
|
100 %
|
|
$605,072
|
100 %
|
|
|
|
Weighted
Average
|
|
Asset
Quality
|
March 31,
2024
|
Balance (2)
(3)
|
Average
Loan
Size
(4)
|
Loan to
Value
|
Debt
Service
Coverage
|
|
Pass
|
Special
Mention
|
Classified
|
|
Nonaccrual (included in
Classified)
|
Commercial Real
Estate - Office by Class:
|
|
|
|
|
|
|
|
|
|
|
Class A
|
$113,025
|
$10,352
|
58 %
|
1.73x
|
|
$106,692
|
$6,333
|
$—
|
|
$—
|
Class B
|
93,993
|
4,503
|
67 %
|
1.44x
|
|
71,788
|
—
|
22,205
|
|
18,729
|
Class C
|
12,757
|
2,126
|
58 %
|
1.37x
|
|
12,757
|
—
|
—
|
|
—
|
Medical
Office
|
40,642
|
6,388
|
61 %
|
1.44x
|
|
40,642
|
—
|
—
|
|
—
|
Lab Space
|
24,258
|
23,468
|
91 %
|
1.24x
|
|
4,912
|
—
|
19,346
|
|
—
|
Total office
(1)
|
$284,675
|
$6,656
|
66 %
|
1.51x
|
|
$236,791
|
$6,333
|
$41,551
|
|
$18,729
|
|
|
(1)
|
Approximately 66% of
the total commercial real estate office balance of $285 million is
secured by income producing properties located in suburban
areas. Additionally, approximately 33% of the total
commercial real estate office balance is expected to mature in two
years.
|
(2)
|
The balance of
commercial real estate office consists of 47 loans.
|
(3)
|
Does not include $28.2
million of unfunded commitments.
|
(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)
|
|
|
|
|
|
|
|
Mar 31,
2024
|
Dec 31,
2023
|
Sep 30,
2023
|
Jun 30,
2023
|
Mar 31,
2023
|
Deposits:
|
|
|
|
|
|
Noninterest-bearing
demand deposits
|
$648,929
|
$693,746
|
$773,261
|
$758,242
|
$829,763
|
Interest-bearing demand
deposits (in-market)
|
536,923
|
504,959
|
490,217
|
428,306
|
318,365
|
NOW accounts
|
735,617
|
767,036
|
745,778
|
791,887
|
828,700
|
Money market
accounts
|
1,111,510
|
1,096,959
|
1,111,797
|
1,164,557
|
1,214,014
|
Savings
accounts
|
484,678
|
497,223
|
514,526
|
521,185
|
544,604
|
Time deposits
(in-market)
|
1,156,516
|
1,134,187
|
1,111,942
|
1,048,820
|
924,506
|
In-market
deposits
|
4,674,173
|
4,694,110
|
4,747,521
|
4,712,997
|
4,659,952
|
Wholesale brokered
demand deposits
|
—
|
—
|
—
|
—
|
1,233
|
Wholesale brokered time
deposits
|
673,720
|
654,050
|
668,042
|
601,481
|
607,329
|
Wholesale brokered
deposits
|
673,720
|
654,050
|
668,042
|
601,481
|
608,562
|
Total
deposits
|
$5,347,893
|
$5,348,160
|
$5,415,563
|
$5,314,478
|
$5,268,514
|
|
March 31,
2024
|
|
December 31,
2023
|
|
Balance
|
% of Total
Deposits
|
|
Balance
|
% of Total
Deposits
|
Uninsured
Deposits:
|
|
|
|
|
|
Uninsured
deposits (1)
|
$1,226,123
|
23 %
|
|
$1,260,672
|
24 %
|
Less: affiliate
deposits (2)
|
89,872
|
2
|
|
92,645
|
2
|
Uninsured deposits,
excluding affiliate deposits
|
1,136,251
|
21
|
|
1,168,027
|
22
|
Less:
fully-collateralized preferred deposits (3)
|
170,849
|
3
|
|
204,327
|
4
|
Uninsured deposits,
after exclusions
|
$965,402
|
18 %
|
|
$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.
|
|
Mar 31,
2024
|
Dec 31,
2023
|
Contingent
Liquidity:
|
|
|
Federal Home Loan Bank
of Boston
|
$999,430
|
$1,086,607
|
Federal Reserve Bank of
Boston
|
68,549
|
65,759
|
Noninterest-bearing
cash
|
52,544
|
54,970
|
Unencumbered
securities
|
669,452
|
680,857
|
Total
|
$1,789,975
|
$1,888,193
|
|
|
|
Percentage of total
contingent liquidity to uninsured deposits
|
146.0 %
|
149.8 %
|
Percentage of total
contingent liquidity to uninsured deposits, after
exclusions
|
185.4 %
|
195.9 %
|
Washington Trust
Bancorp, Inc. and Subsidiaries
|
CREDIT & ASSET
QUALITY DATA
|
(Unaudited; Dollars in
thousands)
|
|
|
|
Mar 31,
2024
|
Dec 31,
2023
|
Sep 30,
2023
|
Jun 30,
2023
|
Mar 31,
2023
|
Asset Quality
Ratios:
|
|
|
|
|
|
Nonperforming assets to
total assets
|
0.43 %
|
0.63 %
|
0.48 %
|
0.16 %
|
0.21 %
|
Nonaccrual loans to
total loans
|
0.54 %
|
0.79 %
|
0.60 %
|
0.19 %
|
0.27 %
|
Total past due loans to
total loans
|
0.18 %
|
0.20 %
|
0.17 %
|
0.12 %
|
0.15 %
|
Allowance for credit
losses on loans to nonaccrual loans
|
136.45 %
|
92.02 %
|
119.50 %
|
378.04 %
|
277.40 %
|
Allowance for credit
losses on loans to total loans
|
0.74 %
|
0.73 %
|
0.72 %
|
0.73 %
|
0.74 %
|
|
|
|
|
|
|
Nonperforming
Assets:
|
|
|
|
|
|
Commercial real
estate
|
$18,729
|
$32,827
|
$22,609
|
$—
|
$1,601
|
Commercial &
industrial
|
668
|
682
|
696
|
899
|
920
|
Total
commercial
|
19,397
|
33,509
|
23,305
|
899
|
2,521
|
Residential real
estate
|
9,722
|
9,626
|
9,446
|
8,542
|
10,470
|
Home equity
|
1,591
|
1,483
|
901
|
966
|
989
|
Other
consumer
|
—
|
—
|
—
|
—
|
—
|
Total
consumer
|
1,591
|
1,483
|
901
|
966
|
989
|
Total nonaccrual
loans
|
30,710
|
44,618
|
33,652
|
10,407
|
13,980
|
Other real estate
owned
|
683
|
683
|
683
|
683
|
683
|
Total nonperforming
assets
|
$31,393
|
$45,301
|
$34,335
|
$11,090
|
$14,663
|
|
|
|
|
|
|
Past Due Loans (30
days or more past due):
|
|
|
|
|
|
Commercial real
estate
|
$—
|
$—
|
$—
|
$—
|
$1,188
|
Commercial &
industrial
|
270
|
10
|
4
|
223
|
229
|
Total
commercial
|
270
|
10
|
4
|
223
|
1,417
|
Residential real
estate
|
6,858
|
8,116
|
7,785
|
4,384
|
5,730
|
Home equity
|
2,879
|
3,196
|
1,925
|
1,509
|
833
|
Other
consumer
|
32
|
23
|
19
|
214
|
15
|
Total
consumer
|
2,911
|
3,219
|
1,944
|
1,723
|
848
|
Total past due
loans
|
$10,039
|
$11,345
|
$9,733
|
$6,330
|
$7,995
|
|
|
|
|
|
|
Accruing loans 90 days
or more past due
|
$—
|
$—
|
$—
|
$—
|
$—
|
Nonaccrual loans
included in past due loans
|
$5,111
|
$6,877
|
$5,710
|
$3,672
|
$5,648
|
Washington Trust
Bancorp, Inc. and Subsidiaries
|
CREDIT & ASSET
QUALITY DATA
|
(Unaudited; Dollars in
thousands)
|
|
For the Three Months
Ended
|
|
Mar 31,
2024
|
Dec 31,
2023
|
Sep 30,
2023
|
Jun 30,
2023
|
Mar 31,
2023
|
Nonaccrual Loan
Activity:
|
|
|
|
|
|
Balance at beginning of
period
|
$44,618
|
$33,652
|
$10,407
|
$13,980
|
$12,846
|
Additions to nonaccrual
status
|
431
|
12,018
|
25,088
|
600
|
2,570
|
Loans returned to
accruing status
|
(13,764)
|
—
|
(197)
|
(1,329)
|
(110)
|
Loans
charged-off
|
(70)
|
(420)
|
(44)
|
(52)
|
(61)
|
Loans transferred to
other real estate owned
|
—
|
—
|
—
|
—
|
(683)
|
Payments, payoffs, and
other changes
|
(505)
|
(632)
|
(1,602)
|
(2,792)
|
(582)
|
Balance at end of
period
|
$30,710
|
$44,618
|
$33,652
|
$10,407
|
$13,980
|
|
|
|
|
|
|
Allowance for Credit
Losses on Loans:
|
|
|
|
|
|
Balance at beginning of
period
|
$41,057
|
$40,213
|
$39,343
|
$38,780
|
$38,027
|
Provision for credit
losses on loans (1)
|
900
|
1,250
|
900
|
600
|
800
|
Charge-offs
|
(70)
|
(420)
|
(44)
|
(52)
|
(61)
|
Recoveries
|
18
|
14
|
14
|
15
|
14
|
Balance at end of
period
|
$41,905
|
$41,057
|
$40,213
|
$39,343
|
$38,780
|
|
|
|
|
|
|
Allowance for Credit
Losses on Unfunded Commitments:
|
|
|
|
|
Balance at beginning of
period
|
$1,940
|
$1,990
|
$2,390
|
$2,290
|
$2,290
|
Provision for credit
losses on unfunded commitments (1)
|
(200)
|
(50)
|
(400)
|
100
|
—
|
Balance at end of
period (2)
|
$1,740
|
$1,940
|
$1,990
|
$2,390
|
$2,290
|
|
|
(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
|
|
Mar 31,
2024
|
Dec 31,
2023
|
Sep 30,
2023
|
Jun 30,
2023
|
Mar 31,
2023
|
Net Loan Charge-Offs
(Recoveries):
|
|
|
|
|
|
Commercial real
estate
|
$—
|
$373
|
$—
|
$—
|
$—
|
Commercial &
industrial
|
(1)
|
10
|
4
|
5
|
6
|
Total
commercial
|
(1)
|
383
|
4
|
5
|
6
|
Residential real
estate
|
—
|
(3)
|
—
|
—
|
—
|
Home equity
|
(1)
|
—
|
(7)
|
(2)
|
(1)
|
Other
consumer
|
54
|
26
|
33
|
34
|
42
|
Total
consumer
|
53
|
26
|
26
|
32
|
41
|
Total
|
$52
|
$406
|
$30
|
$37
|
$47
|
|
|
|
|
|
|
Net charge-offs to
average loans - annualized
|
— %
|
0.03 %
|
— %
|
— %
|
— %
|
The following table presents average balance and interest rate
information. 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 and
changes in fair value on mortgage loans held for sale 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
|
March 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
|
$78,992
|
$1,196
|
6.09 %
|
|
$89,719
|
$1,282
|
5.67 %
|
|
($10,727)
|
($86)
|
0.42 %
|
Mortgage loans held for
sale
|
15,452
|
255
|
6.64
|
|
14,620
|
255
|
6.92
|
|
832
|
—
|
(0.28)
|
Taxable debt
securities
|
1,146,454
|
7,096
|
2.49
|
|
1,163,042
|
7,191
|
2.45
|
|
(16,588)
|
(95)
|
0.04
|
FHLB stock
|
53,858
|
1,073
|
8.01
|
|
50,662
|
982
|
7.69
|
|
3,196
|
91
|
0.32
|
Commercial real
estate
|
2,140,887
|
34,220
|
6.43
|
|
2,087,447
|
33,260
|
6.32
|
|
53,440
|
960
|
0.11
|
Commercial &
industrial
|
610,747
|
9,892
|
6.51
|
|
606,822
|
9,903
|
6.47
|
|
3,925
|
(11)
|
0.04
|
Total
commercial
|
2,751,634
|
44,112
|
6.45
|
|
2,694,269
|
43,163
|
6.36
|
|
57,365
|
949
|
0.09
|
Residential real
estate
|
2,592,769
|
26,531
|
4.12
|
|
2,606,432
|
26,303
|
4.00
|
|
(13,663)
|
228
|
0.12
|
Home equity
|
310,231
|
5,004
|
6.49
|
|
307,601
|
4,774
|
6.16
|
|
2,630
|
230
|
0.33
|
Other
|
19,112
|
212
|
4.46
|
|
19,275
|
238
|
4.90
|
|
(163)
|
(26)
|
(0.44)
|
Total
consumer
|
329,343
|
5,216
|
6.37
|
|
326,876
|
5,012
|
6.08
|
|
2,467
|
204
|
0.29
|
Total loans
|
5,673,746
|
75,859
|
5.38
|
|
5,627,577
|
74,478
|
5.25
|
|
46,169
|
1,381
|
0.13
|
Total interest-earning
assets
|
6,968,502
|
85,479
|
4.93
|
|
6,945,620
|
84,188
|
4.81
|
|
22,882
|
1,291
|
0.12
|
Noninterest-earning
assets
|
263,333
|
|
|
|
245,955
|
|
|
|
17,378
|
|
|
Total assets
|
$7,231,835
|
|
|
|
$7,191,575
|
|
|
|
$40,260
|
|
|
Liabilities and
Shareholders' Equity:
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand
deposits (in-market)
|
$506,239
|
$5,706
|
4.53 %
|
|
$506,365
|
$5,733
|
4.49 %
|
|
($126)
|
($27)
|
0.04 %
|
NOW accounts
|
720,918
|
375
|
0.21
|
|
721,820
|
417
|
0.23
|
|
(902)
|
(42)
|
(0.02)
|
Money market
accounts
|
1,107,591
|
10,417
|
3.78
|
|
1,139,403
|
10,339
|
3.60
|
|
(31,812)
|
78
|
0.18
|
Savings
accounts
|
490,268
|
752
|
0.62
|
|
501,027
|
622
|
0.49
|
|
(10,759)
|
130
|
0.13
|
Time deposits
(in-market)
|
1,149,442
|
11,720
|
4.10
|
|
1,127,236
|
11,192
|
3.94
|
|
22,206
|
528
|
0.16
|
Interest-bearing
in-market deposits
|
3,974,458
|
28,970
|
2.93
|
|
3,995,851
|
28,303
|
2.81
|
|
(21,393)
|
667
|
0.12
|
Wholesale brokered time
deposits
|
699,605
|
9,077
|
5.22
|
|
669,342
|
8,764
|
5.19
|
|
30,263
|
313
|
0.03
|
Total interest-bearing
deposits
|
4,674,063
|
38,047
|
3.27
|
|
4,665,193
|
37,067
|
3.15
|
|
8,870
|
980
|
0.12
|
FHLB
advances
|
1,239,945
|
15,138
|
4.91
|
|
1,148,533
|
13,814
|
4.77
|
|
91,412
|
1,324
|
0.14
|
Junior subordinated
debentures
|
22,681
|
406
|
7.20
|
|
22,681
|
411
|
7.19
|
|
—
|
(5)
|
0.01
|
Total interest-bearing
liabilities
|
5,936,689
|
53,591
|
3.63
|
|
5,836,407
|
51,292
|
3.49
|
|
100,282
|
2,299
|
0.14
|
Noninterest-bearing
demand deposits
|
664,656
|
|
|
|
734,966
|
|
|
|
(70,310)
|
|
|
Other
liabilities
|
159,394
|
|
|
|
184,143
|
|
|
|
(24,749)
|
|
|
Shareholders'
equity
|
471,096
|
|
|
|
436,059
|
|
|
|
35,037
|
|
|
Total liabilities and
shareholders' equity
|
$7,231,835
|
|
|
|
$7,191,575
|
|
|
|
$40,260
|
|
|
Net interest income
(FTE)
|
|
$31,888
|
|
|
|
$32,896
|
|
|
|
($1,008)
|
|
Interest rate
spread
|
|
|
1.30 %
|
|
|
|
1.32 %
|
|
|
|
(0.02 %)
|
Net interest
margin
|
|
|
1.84 %
|
|
|
|
1.88 %
|
|
|
|
(0.04 %)
|
Interest income amounts presented in the preceding table include
the following adjustments for taxable equivalency:
For the Three Months
Ended
|
Mar 31,
2024
|
Dec 31,
2023
|
Change
|
Commercial
loans
|
$223
|
$242
|
($19)
|
Total
|
$223
|
$242
|
($19)
|
Washington Trust
Bancorp, Inc. and Subsidiaries
|
SUPPLEMENTAL
INFORMATION - Calculation of Non-GAAP Financial
Measures
|
(Unaudited; Dollars in
thousands, except per share amounts)
|
|
|
|
Mar 31,
2024
|
Dec 31,
2023
|
Sep 30,
2023
|
Jun 30,
2023
|
Mar 31,
2023
|
Tangible Book Value
per Share:
|
|
|
|
|
|
Total shareholders'
equity, as reported
|
$466,920
|
$472,686
|
$431,404
|
$459,161
|
$464,983
|
Less:
|
|
|
|
|
|
Goodwill
|
63,909
|
63,909
|
63,909
|
63,909
|
63,909
|
Identifiable intangible
assets, net
|
3,503
|
3,711
|
3,919
|
4,130
|
4,342
|
Total tangible
shareholders' equity
|
$399,508
|
$405,066
|
$363,576
|
$391,122
|
$396,732
|
|
|
|
|
|
|
Shares outstanding, as
reported
|
17,033
|
17,031
|
17,019
|
17,019
|
16,986
|
|
|
|
|
|
|
Book value per share -
GAAP
|
$27.41
|
$27.75
|
$25.35
|
$26.98
|
$27.37
|
Tangible book value per
share - Non-GAAP
|
$23.45
|
$23.78
|
$21.36
|
$22.98
|
$23.36
|
|
|
|
|
|
|
Tangible Equity to
Tangible Assets:
|
|
|
|
|
|
Total tangible
shareholders' equity
|
$399,508
|
$405,066
|
$363,576
|
$391,122
|
$396,732
|
|
|
|
|
|
|
Total assets, as
reported
|
$7,249,124
|
$7,202,847
|
$7,183,475
|
$7,011,760
|
$6,859,182
|
Less:
|
|
|
|
|
|
Goodwill
|
63,909
|
63,909
|
63,909
|
63,909
|
63,909
|
Identifiable intangible
assets, net
|
3,503
|
3,711
|
3,919
|
4,130
|
4,342
|
Total tangible
assets
|
$7,181,712
|
$7,135,227
|
$7,115,647
|
$6,943,721
|
$6,790,931
|
|
|
|
|
|
|
Equity to assets -
GAAP
|
6.44 %
|
6.56 %
|
6.01 %
|
6.55 %
|
6.78 %
|
Tangible equity to
tangible assets - Non-GAAP
|
5.56 %
|
5.68 %
|
5.11 %
|
5.63 %
|
5.84 %
|
|
For the Three Months
Ended
|
|
Mar 31,
2024
|
Dec 31,
2023
|
Sep 30,
2023
|
Jun 30,
2023
|
Mar 31,
2023
|
Return on Average
Tangible Assets:
|
|
|
|
|
|
Net income, as
reported
|
$10,936
|
$12,947
|
$11,161
|
$11,256
|
$12,812
|
|
|
|
|
|
|
Total average assets,
as reported
|
$7,231,835
|
$7,191,575
|
$7,115,157
|
$6,939,238
|
$6,743,996
|
Less average balances
of:
|
|
|
|
|
|
Goodwill
|
63,909
|
63,909
|
63,909
|
63,909
|
63,909
|
Identifiable intangible
assets, net
|
3,604
|
3,812
|
4,021
|
4,233
|
4,445
|
Total average tangible
assets
|
$7,164,322
|
$7,123,854
|
$7,047,227
|
$6,871,096
|
$6,675,642
|
|
|
|
|
|
|
Return on average
assets - GAAP
|
0.61 %
|
0.71 %
|
0.62 %
|
0.65 %
|
0.77 %
|
Return on average
tangible assets - Non-GAAP
|
0.61 %
|
0.72 %
|
0.63 %
|
0.66 %
|
0.78 %
|
|
|
|
|
|
|
Return on Average
Tangible Equity:
|
|
|
|
|
|
Net income available to
common shareholders, as reported
|
$10,924
|
$12,931
|
$11,140
|
$11,237
|
$12,783
|
|
|
|
|
|
|
Total average equity,
as reported
|
$471,096
|
$436,059
|
$458,015
|
$466,227
|
$460,106
|
Less average balances
of:
|
|
|
|
|
|
Goodwill
|
63,909
|
63,909
|
63,909
|
63,909
|
63,909
|
Identifiable intangible
assets, net
|
3,604
|
3,812
|
4,021
|
4,233
|
4,445
|
Total average tangible
equity
|
$403,583
|
$368,338
|
$390,085
|
$398,085
|
$391,752
|
|
|
|
|
|
|
Return on average
equity - GAAP
|
9.33 %
|
11.77 %
|
9.65 %
|
9.67 %
|
11.27 %
|
Return on average
tangible equity - Non-GAAP
|
10.89 %
|
13.93 %
|
11.33 %
|
11.32 %
|
13.23 %
|
Category: Earnings
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SOURCE Washington Trust Bancorp, Inc.