WESTERLY, R.I., Jan. 24,
2024 /PRNewswire/ -- Washington Trust Bancorp,
Inc. (Nasdaq: WASH), parent company of The Washington Trust
Company, today announced fourth quarter 2023 net income of
$12.9 million, or $0.76 per diluted share, compared to net income
of $11.2 million, or $0.65 per diluted share, for the third quarter of
2023. Net income for the year ended December 31, 2023
totaled of $48.2 million, or
$2.82 per diluted share, compared to
$71.7 million, or $4.11 per diluted share, reported for the prior
year.
In October 2023, the Commonwealth
of Massachusetts enacted into law
a tax bill changing how corporations calculate their Massachusetts taxable income effective on
January 1, 2025. As required,
the Corporation revalued its deferred tax assets and liabilities
and in the fourth quarter of 2023 increased its net deferred tax
assets by $3.3 million with a
corresponding decrease to income tax expense. This increased
fourth quarter and full-year 2023 earnings per diluted share by
$0.19.
"Washington Trust's year-end results reflect the Corporation's
continued perseverance in facing economic headwinds and addressing
numerous challenges posed by a difficult operating environment,"
stated Edward O. Handy III,
Washington Trust Chairman and Chief Executive Officer. "While we
remain cautious about economic growth in 2024, we believe our
diversified business model, disciplined credit culture, and
dedicated team will guide us going forward."
Selected financial highlights for the fourth quarter and
full-year 2023 include:
- Returns on average equity and average assets for the fourth
quarter were 11.77% and 0.71%, respectively, compared to 9.65% and
0.62%, respectively, for the preceding quarter. Full-year returns
on average equity and average assets for 2023 were 10.57% and
0.69%, respectively, compared to 14.49% and 1.17%, respectively,
for the prior year.
- The net interest margin was 1.88% in the fourth quarter,
compared to 1.97% in the preceding quarter. Full-year net interest
margin for 2023 was 2.05%, down 64 basis points from the 2.69%
reported in the prior year.
- In the fourth quarter, a provision for credit losses of
$1.2 million was recognized, up by
$700 thousand from the provision
recognized in the preceding quarter. The provision for credit
losses in 2023 totaled $3.2 million,
compared to a negative provision of $1.3
million recognized in the prior year.
- Total loans amounted to $5.6
billion, up by 1% from the end of the preceding
quarter.
- In-market deposits (total deposits less wholesale brokered
deposits) amounted to $4.7 billion,
down by 1% from September 30,
2023.
Net Interest Income
Net interest income was $32.7 million
for the fourth quarter of 2023, down by $1.1
million, or 3%, from the third quarter of 2023. The
net interest margin was 1.88% for the fourth quarter, a decrease of
9 basis points from the preceding quarter. The declines
in net interest income and net interest margin reflect the impact
of rapid interest rate increases. Linked quarter changes
included:
- Average interest-earning assets increased by $103 million, due to an increase of $139 million in average loans, partially offset
by declines in investment securities. The yield on interest-earning
assets for the fourth quarter was 4.81%, up by 12 basis points from
the preceding quarter.
- Average interest-bearing liabilities increased by $126 million, with increases in average wholesale
funding balances of $105 million and
average in-market deposits of $21
million. The cost of interest-bearing liabilities for the
fourth quarter of 2023 was 3.49%, up by 23 basis points from the
preceding quarter.
Noninterest Income
Noninterest income totaled $13.3
million for the fourth quarter of 2023, down by $1.9 million, or 13%, from the third quarter of
2023. Linked quarter changes included:
- Wealth management revenues amounted to $8.9 million in the fourth quarter of 2023, down
by $67 thousand, or 1%, on a linked
quarter basis. This correlated with a decrease in the average
balance of wealth management assets under administration ("AUA"),
which was down by approximately $58
million, or 1%, from the preceding quarter.
The end of period AUA balance at December 31, 2023 amounted to
$6.6 billion, up by
$457 million, or 7%, from September 30, 2023. This
increase reflected net investment appreciation of $503 million, partially offset by net client
asset outflows of $46 million.
- Mortgage banking revenues totaled $1.6
million for the fourth quarter of 2023, down by $554 thousand, or 26%, from the preceding
quarter, with lower realized gains on loan sales, partially offset
by changes in the fair value of mortgage loans held for sale and
forward loan commitments. Realized gains decreased by $613 thousand, or 35%, from the preceding
quarter, due to a lower volume of loans sold and a lower sales
yield. Loans sold amounted to $67.5
million in the fourth quarter of 2023, down by $21.2 million, or 24%, from the preceding
quarter.
- Loan related derivative income from interest rate swap
contracts with commercial borrowers in the fourth quarter of 2023
totaled $112 thousand, down by
$970 thousand, or 90%, from the
preceding quarter, reflecting a decline in volume.
Noninterest Expense
Noninterest expense totaled $32.6
million for the fourth quarter of 2023, down by $1.8 million, or 5%, from the third quarter of
2023. Linked quarter changes included:
- Salaries and employee benefits expense amounted to $18.5 million, down by $3.2 million, or 15%, from the preceding quarter
reflecting adjustments to performance-based compensation
accruals.
- Other noninterest expenses totaled $3.6
million, up by $1.3 million,
or 56%, from the preceding quarter, largely due to a $1.0 million contribution made by Washington
Trust to its charitable foundation.
Income Tax
In the fourth quarter of 2023, a $774 thousand income tax
benefit was recognized, reflecting an effective tax rate of
negative 6.4%. As previously mentioned, income tax expense
was reduced by a net $3.3 million
adjustment largely associated with the revaluation of the
Corporation's net deferred tax assets due to the enactment of a tax
bill into law by the Commonwealth of Massachusetts. The
revaluation of our net deferred tax assets is subject to further
guidance and interpretation of the law that may be issued.
Excluding this adjustment, the effective tax rate for the fourth
quarter of 2023 would have been 20.4%, compared to 20.8% for the
preceding quarter. Based on current federal and applicable
state income tax statutes, the Corporation currently expects its
full-year 2024 effective tax rate to be approximately 21.2%.
Investment Securities
The securities portfolio totaled $1.0
billion at December 31, 2023, up by $41 million,
or 4%, from September 30, 2023, reflecting an increase of
$59 million in the fair value of available for sale debt
securities due to changes in market interest rates, partially
offset by routine pay-downs and maturities. The securities
portfolio represented 14% of total assets at December 31,
2023, compared to 13% of total assets at September 30,
2023.
Loans
Total loans amounted to $5.6 billion at December 31, 2023, up
by $37 million, or 1%, from the end
of the preceding quarter and up by $538
million, or 11%, from the balance at December 31,
2022. These changes included:
- Commercial loans increased by $36
million, or 1%, from September 30,
2023, reflecting originations and advances of $99 million, partially offset by principal
payments of $63 million. Commercial
loans increased by $226 million, or
9%, from December 31, 2022,
reflecting originations and advances of $472
million, partially offset by principal payments of
$246 million.
- Residential real estate loans decreased by $7 million, or 0.3%, from September 30, 2023 and increased by $281 million, or 12%, from December 31, 2022. In the fourth quarter of 2023,
residential real estate loans originated for portfolio amounted to
$40 million, down by $122 million, or 75%, from the preceding quarter.
Full-year 2023 residential real estate loans originated for
portfolio amounted to $460 million,
down by $422 million, or 48%, from
2022.
- The consumer loan portfolio increased by $7 million, or 2%, from September 30, 2023, and up by $30 million, or 10%, from December 31, 2022, largely reflecting growth in
home equity lines and loans.
Deposits and Borrowings
Total deposits amounted to $5.3 billion at December 31, 2023, down
by $67 million, or 1%, from the end of the preceding quarter
and up by $329 million, or 7%, from a year ago.
Uninsured deposits, after exclusions (as detailed in the financial
tables below) amounted to $964
million, or 18% of total deposits, at December 31,
2023.
In-market deposits, which exclude wholesale brokered deposits,
amounted to $4.7 billion at
December 31, 2023, down by $53 million, or 1%, from
September 30, 2023 and up by $33 million, or 1%, from a
year ago. As of December 31, 2023, in-market deposits
were approximately 60% retail and 40% commercial. The average
size of our in-market deposit accounts was approximately
$36 thousand at December 31, 2023.
Wholesale brokered deposits amounted to $654 million and
were down by $14 million, or 2%, from September 30, 2023
and up by $296 million, or 83%, from a year ago.
FHLB advances totaled $1.2 billion at December 31, 2023, up
by $70 million, or 6%, from September 30, 2023 and up by
$210 million, or 21%, from a year ago. As of
December 31, 2023, contingent liquidity amounted to
$1.9 billion and consisted of
noninterest-bearing cash, unencumbered securities and unused
collateralized borrowing capacity.
Asset Quality
Nonaccrual loans were $44.6 million, or 0.79% of total loans, at
December 31, 2023, compared to $33.7 million, or 0.60% of total loans, at
September 30, 2023. The increase in nonaccrual loans was
largely due to one commercial real estate loan that was placed on
nonaccrual status in the quarter. The composition of
nonaccrual loans at December 31, 2023 was 75% commercial and
25% residential and consumer.
Past due loans were $11.3 million,
or 0.20% of total loans, at December 31, 2023, compared to
$9.7 million, or 0.17% of total
loans, at September 30, 2023. The composition of past
due loans at December 31, 2023 was essentially 100%
residential and consumer.
The allowance for credit losses ("ACL") on loans amounted to
$41.1 million, or 0.73% of total
loans, at December 31, 2023, compared to $40.2 million, or 0.72% of total loans, at
September 30, 2023. The ACL on unfunded commitments,
included in other liabilities on the Consolidated Balance Sheets,
was $1.9 million at
December 31, 2023, compared to $2.0 million at September 30, 2023.
The provision for credit losses totaled $1.2 million in the fourth quarter of 2023,
up by $700 thousand from the preceding quarter. The
provision for credit losses in the fourth quarter of 2023 was
composed of a provision for credit losses on loans of $1.3 million and a negative provision (or a
benefit) for credit losses on unfunded commitments of
$50 thousand.
In the fourth quarter of 2023, net charge-offs of
$406 thousand were recognized, compared to $30 thousand
in the preceding quarter. Full-year net charge-offs totaled
$520 thousand in 2023, compared to net recoveries of
$368 thousand in the prior year.
Capital and Dividends
Total shareholders' equity was $472.7 million at December 31, 2023, up
by $41.3 million, or 10%, from
September 30, 2023. This included an increase of
$37.6 million in the accumulated
other comprehensive income ("AOCI") component of shareholders'
equity and net income of $12.9 million, partially offset by
$9.6 million in dividend
declarations. The increase in AOCI included an increase in
the fair value of available for sale securities due to changes in
market interest rates, partially offset by a decrease of
$5.0 million associated with the
annual remeasurement of pension liabilities.
The Board of Directors declared a quarterly dividend of
56 cents per share for the quarter ended December 31,
2023. The dividend was paid on January 12, 2024 to
shareholders of record on January 2, 2024. Full-year
dividends declared totaled $2.24 per
share in 2023, an increase of 6 cents
per share, or 3%, from 2022.
Capital levels at December 31, 2023 exceeded the regulatory
minimum levels to be considered well capitalized, with a total
risk-based capital ratio of 11.58% at December 31, 2023,
compared to 11.48% at September 30, 2023. Book value per
share was $27.75 at December 31,
2023, compared to $25.35 at
September 30, 2023.
Conference Call
Washington Trust will host a conference call to discuss its fourth
quarter results, business highlights and outlook on Thursday,
January 25, 2024 at 8:30 a.m.
(Eastern Time). Individuals may dial in to the call at
1-833-470-1428 and enter Access Code 359112. 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
384692. The audio replay will be available through
February 8, 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
March 31, 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, 2022, 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)
|
|
|
|
|
|
|
|
Dec 31,
2023
|
Sep 30,
2023
|
Jun 30,
2023
|
Mar 31,
2023
|
Dec 31,
2022
|
Assets:
|
|
|
|
|
|
Cash and due from
banks
|
$86,824
|
$109,432
|
$124,877
|
$134,989
|
$115,492
|
Short-term
investments
|
3,360
|
3,577
|
3,439
|
3,291
|
2,930
|
Mortgage loans held for
sale, at fair value
|
20,077
|
10,550
|
20,872
|
7,445
|
8,987
|
Available for sale debt
securities, at fair value
|
1,000,380
|
958,990
|
1,022,458
|
1,054,747
|
993,928
|
Federal Home Loan Bank
stock, at cost
|
51,893
|
52,668
|
45,868
|
42,501
|
43,463
|
Loans:
|
|
|
|
|
|
Total loans
|
5,647,706
|
5,611,115
|
5,381,113
|
5,227,969
|
5,110,139
|
Less: allowance for
credit losses on loans
|
41,057
|
40,213
|
39,343
|
38,780
|
38,027
|
Net loans
|
5,606,649
|
5,570,902
|
5,341,770
|
5,189,189
|
5,072,112
|
Premises and equipment,
net
|
32,291
|
31,976
|
32,591
|
31,719
|
31,550
|
Operating lease
right-of-use assets
|
29,364
|
27,882
|
28,633
|
26,170
|
27,156
|
Investment in
bank-owned life insurance
|
103,736
|
103,003
|
102,293
|
101,782
|
102,182
|
Goodwill
|
63,909
|
63,909
|
63,909
|
63,909
|
63,909
|
Identifiable intangible
assets, net
|
3,711
|
3,919
|
4,130
|
4,342
|
4,554
|
Other assets
|
200,653
|
246,667
|
220,920
|
199,098
|
193,788
|
Total assets
|
$7,202,847
|
$7,183,475
|
$7,011,760
|
$6,859,182
|
$6,660,051
|
Liabilities:
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
Noninterest-bearing
deposits
|
$693,746
|
$773,261
|
$758,242
|
$829,763
|
$858,953
|
Interest-bearing
deposits
|
4,654,414
|
4,642,302
|
4,556,236
|
4,438,751
|
4,160,009
|
Total
deposits
|
5,348,160
|
5,415,563
|
5,314,478
|
5,268,514
|
5,018,962
|
Federal Home Loan Bank
advances
|
1,190,000
|
1,120,000
|
1,040,000
|
925,000
|
980,000
|
Junior subordinated
debentures
|
22,681
|
22,681
|
22,681
|
22,681
|
22,681
|
Operating lease
liabilities
|
32,027
|
30,554
|
31,302
|
28,622
|
29,558
|
Other
liabilities
|
137,293
|
163,273
|
144,138
|
149,382
|
155,181
|
Total
liabilities
|
6,730,161
|
6,752,071
|
6,552,599
|
6,394,199
|
6,206,382
|
Shareholders'
Equity:
|
|
|
|
|
|
Common stock
|
1,085
|
1,085
|
1,085
|
1,085
|
1,085
|
Paid-in
capital
|
126,150
|
126,310
|
125,685
|
127,734
|
127,056
|
Retained
earnings
|
501,917
|
498,521
|
496,996
|
495,231
|
492,043
|
Accumulated other
comprehensive loss
|
(141,153)
|
(178,734)
|
(148,827)
|
(141,760)
|
(157,800)
|
Treasury stock, at
cost
|
(15,313)
|
(15,778)
|
(15,778)
|
(17,307)
|
(8,715)
|
Total shareholders'
equity
|
472,686
|
431,404
|
459,161
|
464,983
|
453,669
|
Total liabilities and
shareholders' equity
|
$7,202,847
|
$7,183,475
|
$7,011,760
|
$6,859,182
|
$6,660,051
|
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,
2023
|
Sep 30,
2023
|
Jun 30,
2023
|
Mar 31,
2023
|
Dec 31,
2022
|
|
Dec 31,
2023
|
Dec 31,
2022
|
Interest
income:
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
$74,236
|
$70,896
|
$65,449
|
$59,749
|
$53,644
|
|
$270,330
|
$169,301
|
Interest on mortgage
loans held for sale
|
255
|
332
|
241
|
152
|
314
|
|
980
|
1,165
|
Taxable interest on
debt securities
|
7,191
|
7,271
|
7,403
|
7,194
|
6,618
|
|
29,059
|
21,827
|
Dividends on Federal
Home Loan Bank stock
|
982
|
878
|
858
|
597
|
330
|
|
3,315
|
548
|
Other interest
income
|
1,282
|
1,344
|
1,279
|
1,070
|
855
|
|
4,975
|
1,624
|
Total interest and
dividend income
|
83,946
|
80,721
|
75,230
|
68,762
|
61,761
|
|
308,659
|
194,465
|
Interest
expense:
|
|
|
|
|
|
|
|
|
Deposits
|
37,067
|
34,069
|
29,704
|
19,589
|
12,301
|
|
120,429
|
26,023
|
Federal Home Loan Bank
advances
|
13,814
|
12,497
|
11,652
|
11,626
|
7,822
|
|
49,589
|
11,713
|
Junior subordinated
debentures
|
411
|
404
|
374
|
354
|
296
|
|
1,543
|
739
|
Total interest
expense
|
51,292
|
46,970
|
41,730
|
31,569
|
20,419
|
|
171,561
|
38,475
|
Net interest
income
|
32,654
|
33,751
|
33,500
|
37,193
|
41,342
|
|
137,098
|
155,990
|
Provision for credit
losses
|
1,200
|
500
|
700
|
800
|
800
|
|
3,200
|
(1,300)
|
Net interest income
after provision for credit losses
|
31,454
|
33,251
|
32,800
|
36,393
|
40,542
|
|
133,898
|
157,290
|
Noninterest
income:
|
|
|
|
|
|
|
|
|
Wealth management
revenues
|
8,881
|
8,948
|
9,048
|
8,663
|
8,624
|
|
35,540
|
38,746
|
Mortgage banking
revenues
|
1,554
|
2,108
|
1,753
|
1,245
|
1,103
|
|
6,660
|
8,733
|
Card interchange
fees
|
1,254
|
1,267
|
1,268
|
1,132
|
1,242
|
|
4,921
|
4,996
|
Service charges on
deposit accounts
|
688
|
674
|
667
|
777
|
942
|
|
2,806
|
3,192
|
Loan related derivative
income
|
112
|
1,082
|
247
|
(51)
|
745
|
|
1,390
|
2,756
|
Income from bank-owned
life insurance
|
734
|
710
|
879
|
1,165
|
691
|
|
3,488
|
2,591
|
Other income
|
83
|
437
|
463
|
352
|
441
|
|
1,335
|
1,588
|
Total noninterest
income
|
13,306
|
15,226
|
14,325
|
13,283
|
13,788
|
|
56,140
|
62,602
|
Noninterest
expense:
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
18,464
|
21,622
|
20,588
|
21,784
|
20,812
|
|
82,458
|
83,804
|
Outsourced
services
|
3,667
|
3,737
|
3,621
|
3,496
|
3,568
|
|
14,521
|
13,737
|
Net
occupancy
|
2,396
|
2,387
|
2,416
|
2,437
|
2,418
|
|
9,636
|
9,126
|
Equipment
|
1,133
|
1,107
|
1,050
|
1,028
|
1,002
|
|
4,318
|
3,797
|
Legal, audit and
professional fees
|
959
|
1,058
|
978
|
896
|
987
|
|
3,891
|
3,127
|
FDIC deposit insurance
costs
|
1,239
|
1,185
|
1,371
|
872
|
489
|
|
4,667
|
1,687
|
Advertising and
promotion
|
938
|
789
|
427
|
408
|
713
|
|
2,562
|
2,587
|
Amortization of
intangibles
|
208
|
211
|
212
|
212
|
212
|
|
843
|
860
|
Other
expenses
|
3,583
|
2,294
|
2,353
|
2,431
|
3,158
|
|
10,661
|
9,997
|
Total noninterest
expense
|
32,587
|
34,390
|
33,016
|
33,564
|
33,359
|
|
133,557
|
128,722
|
Income before income
taxes
|
12,173
|
14,087
|
14,109
|
16,112
|
20,971
|
|
56,481
|
91,170
|
Income tax (benefit)
expense
|
(774)
|
2,926
|
2,853
|
3,300
|
4,398
|
|
8,305
|
19,489
|
Net income
|
$12,947
|
$11,161
|
$11,256
|
$12,812
|
$16,573
|
|
$48,176
|
$71,681
|
|
|
|
|
|
|
|
|
|
Net income available to
common shareholders
|
$12,931
|
$11,140
|
$11,237
|
$12,783
|
$16,535
|
|
$48,091
|
$71,479
|
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
17,029
|
17,019
|
17,011
|
17,074
|
17,180
|
|
17,033
|
17,246
|
Diluted
|
17,070
|
17,041
|
17,030
|
17,170
|
17,319
|
|
17,062
|
17,381
|
Earnings per common
share:
|
|
|
|
|
|
|
|
|
Basic
|
$0.76
|
$0.65
|
$0.66
|
$0.75
|
$0.96
|
|
$2.82
|
$4.14
|
Diluted
|
$0.76
|
$0.65
|
$0.66
|
$0.74
|
$0.95
|
|
$2.82
|
$4.11
|
|
|
|
|
|
|
|
|
|
Cash dividends declared
per share
|
$0.56
|
$0.56
|
$0.56
|
$0.56
|
$0.56
|
|
$2.24
|
$2.18
|
Washington Trust
Bancorp, Inc. and Subsidiaries
|
SELECTED FINANCIAL
HIGHLIGHTS
|
(Unaudited; Dollars and
shares in thousands, except per share amounts)
|
|
|
|
Dec 31,
2023
|
Sep 30,
2023
|
Jun 30,
2023
|
Mar 31,
2023
|
Dec 31,
2022
|
Share and Equity
Related Data:
|
|
|
|
|
|
Book value per
share
|
$27.75
|
$25.35
|
$26.98
|
$27.37
|
$26.40
|
Tangible book value per
share - Non-GAAP (1)
|
$23.78
|
$21.36
|
$22.98
|
$23.36
|
$22.42
|
Market value per
share
|
$32.38
|
$26.33
|
$26.81
|
$34.66
|
$47.18
|
Shares issued at end of
period
|
17,363
|
17,363
|
17,363
|
17,363
|
17,363
|
Shares outstanding at
end of period
|
17,031
|
17,019
|
17,019
|
16,986
|
17,183
|
|
|
|
|
|
|
Capital Ratios
(2):
|
|
|
|
|
|
Tier 1 risk-based
capital
|
10.86 %
|
10.77 %
|
11.09 %
|
11.28 %
|
11.69 %
|
Total risk-based
capital
|
11.58 %
|
11.48 %
|
11.81 %
|
12.01 %
|
12.37 %
|
Tier 1 leverage
ratio
|
7.80 %
|
7.87 %
|
8.05 %
|
8.25 %
|
8.65 %
|
Common equity tier
1
|
10.44 %
|
10.35 %
|
10.66 %
|
10.84 %
|
11.24 %
|
|
|
|
|
|
|
Balance Sheet
Ratios:
|
|
|
|
|
|
Equity to
assets
|
6.56 %
|
6.01 %
|
6.55 %
|
6.78 %
|
6.81 %
|
Tangible equity to
tangible assets - Non-GAAP (1)
|
5.68 %
|
5.11 %
|
5.63 %
|
5.84 %
|
5.84 %
|
Loans to
deposits (3)
|
105.2 %
|
103.1 %
|
100.9 %
|
98.6 %
|
101.2 %
|
|
|
|
For the Twelve
Months
Ended
|
|
For the Three Months
Ended
|
|
|
Dec 31,
2023
|
Sep 30,
2023
|
Jun 30,
2023
|
Mar 31,
2023
|
Dec 31,
2022
|
|
Dec 31,
2023
|
Dec 31,
2022
|
Performance
Ratios (4):
|
|
|
|
|
|
|
|
|
Net interest
margin (5)
|
1.88 %
|
1.97 %
|
2.03 %
|
2.33 %
|
2.65 %
|
|
2.05 %
|
2.69 %
|
Return on average
assets (net income divided by
average assets)
|
0.71 %
|
0.62 %
|
0.65 %
|
0.77 %
|
1.01 %
|
|
0.69 %
|
1.17 %
|
Return on average
tangible assets - Non-GAAP (1)
|
0.72 %
|
0.63 %
|
0.66 %
|
0.78 %
|
1.03 %
|
|
0.70 %
|
1.19 %
|
Return on average
equity (net income available for
common shareholders divided by average equity)
|
11.77 %
|
9.65 %
|
9.67 %
|
11.27 %
|
14.96 %
|
|
10.57 %
|
14.49 %
|
Return on average
tangible equity - Non-GAAP (1)
|
13.93 %
|
11.33 %
|
11.32 %
|
13.23 %
|
17.74 %
|
|
12.43 %
|
16.84 %
|
Efficiency ratio
(6)
|
70.9 %
|
70.2 %
|
69.0 %
|
66.5 %
|
60.5 %
|
|
69.1 %
|
58.9 %
|
|
|
(1)
|
See the section labeled
"Supplemental Information - Calculation of Non-GAAP Financial
Measures" at the end of this document.
|
(2)
|
Estimated for December
31, 2023 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
|
|
For the Twelve
Months
Ended
|
|
Dec 31,
2023
|
Sep 30,
2023
|
Jun 30,
2023
|
Mar 31,
2023
|
Dec 31,
2022
|
|
Dec 31,
2023
|
Dec 31,
2022
|
Wealth Management
Results
|
|
|
|
|
|
|
|
|
Wealth Management
Revenues:
|
|
|
|
|
|
|
|
|
Asset-based
revenues
|
$8,634
|
$8,683
|
$8,562
|
$8,429
|
$8,448
|
|
$34,308
|
$37,602
|
Transaction-based
revenues
|
247
|
265
|
486
|
234
|
176
|
|
1,232
|
1,144
|
Total wealth management
revenues
|
$8,881
|
$8,948
|
$9,048
|
$8,663
|
$8,624
|
|
$35,540
|
$38,746
|
|
|
|
|
|
|
|
|
|
Assets Under
Administration (AUA):
|
|
|
|
|
|
|
|
|
Balance at beginning of
period
|
$6,131,395
|
$6,350,260
|
$6,163,422
|
$5,961,990
|
$6,322,757
|
|
$5,961,990
|
$7,784,211
|
Net investment
appreciation (depreciation) &
income
|
503,209
|
(154,269)
|
259,788
|
286,262
|
312,407
|
|
894,990
|
(1,132,378)
|
Net client asset
outflows
|
(46,198)
|
(64,596)
|
(72,950)
|
(84,830)
|
(673,174)
|
|
(268,574)
|
(689,843)
|
Balance at end of
period
|
$6,588,406
|
$6,131,395
|
$6,350,260
|
$6,163,422
|
$5,961,990
|
|
$6,588,406
|
$5,961,990
|
|
|
|
|
|
|
|
|
|
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)
|
$1,133
|
$1,746
|
$827
|
$576
|
$992
|
|
$4,282
|
$7,954
|
Changes in fair value,
net (2)
|
(65)
|
(171)
|
382
|
86
|
(426)
|
|
232
|
(1,224)
|
Loan servicing fee
income, net (3)
|
486
|
533
|
544
|
583
|
537
|
|
2,146
|
2,003
|
Total mortgage banking
revenues
|
$1,554
|
$2,108
|
$1,753
|
$1,245
|
$1,103
|
|
$6,660
|
$8,733
|
|
|
|
|
|
|
|
|
|
Residential Mortgage
Loan Originations:
|
|
|
|
|
|
|
|
|
Originations for
retention in portfolio (4)
|
$39,827
|
$161,603
|
$148,694
|
$109,768
|
$228,579
|
|
$459,892
|
$881,874
|
Originations for sale
to secondary market (5)
|
76,495
|
78,339
|
77,995
|
27,763
|
39,087
|
|
260,592
|
309,407
|
Total mortgage loan
originations
|
$116,322
|
$239,942
|
$226,689
|
$137,531
|
$267,666
|
|
$720,484
|
$1,191,281
|
|
|
|
|
|
|
|
|
|
Residential Mortgage
Loans Sold:
|
|
|
|
|
|
|
|
|
Sold with servicing
rights retained
|
$28,290
|
$34,046
|
$28,727
|
$17,114
|
$27,085
|
|
$108,177
|
$99,849
|
Sold with servicing
rights released (5)
|
39,170
|
54,575
|
35,836
|
12,214
|
27,470
|
|
141,795
|
239,899
|
Total mortgage loans
sold
|
$67,460
|
$88,621
|
$64,563
|
$29,328
|
$54,555
|
|
$249,972
|
$339,748
|
|
|
(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,
2023
|
Sep 30,
2023
|
Jun 30,
2023
|
Mar 31,
2023
|
Dec 31,
2022
|
Loans:
|
|
|
|
|
|
Commercial real
estate (1)
|
$2,106,359
|
$2,063,383
|
$1,940,030
|
$1,909,136
|
$1,829,304
|
Commercial &
industrial
|
605,072
|
611,565
|
611,472
|
609,720
|
656,397
|
Total
commercial
|
2,711,431
|
2,674,948
|
2,551,502
|
2,518,856
|
2,485,701
|
|
|
|
|
|
|
Residential real
estate (2)
|
2,604,478
|
2,611,100
|
2,510,125
|
2,403,255
|
2,323,002
|
|
|
|
|
|
|
Home equity
|
312,594
|
305,683
|
301,116
|
288,878
|
285,715
|
Other
|
19,203
|
19,384
|
18,370
|
16,980
|
15,721
|
Total
consumer
|
331,797
|
325,067
|
319,486
|
305,858
|
301,436
|
Total loans
|
$5,647,706
|
$5,611,115
|
$5,381,113
|
$5,227,969
|
$5,110,139
|
|
|
(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,
2023
|
|
December 31,
2022
|
|
Balance
|
% of Total
|
|
Balance
|
% of Total
|
Commercial Real
Estate Loans by Property Location:
|
|
|
|
|
|
Connecticut
|
$815,975
|
39 %
|
|
$691,780
|
38 %
|
Massachusetts
|
645,736
|
31
|
|
566,717
|
31
|
Rhode Island
|
430,899
|
20
|
|
387,759
|
21
|
Subtotal
|
1,892,610
|
90
|
|
1,646,256
|
90
|
All other
states
|
213,749
|
10
|
|
183,048
|
10
|
Total commercial real
estate loans
|
$2,106,359
|
100 %
|
|
$1,829,304
|
100 %
|
|
|
|
|
|
|
Residential Real
Estate Loans by Property Location:
|
|
|
|
|
|
Massachusetts
|
$1,928,206
|
74 %
|
|
$1,698,240
|
73 %
|
Rhode Island
|
481,289
|
19
|
|
446,010
|
19
|
Connecticut
|
165,933
|
6
|
|
153,323
|
7
|
Subtotal
|
2,575,428
|
99
|
|
2,297,573
|
99
|
All other
states
|
29,050
|
1
|
|
25,429
|
1
|
Total residential real
estate loans
|
$2,604,478
|
100 %
|
|
$2,323,002
|
100 %
|
Washington Trust
Bancorp, Inc. and Subsidiaries
|
END OF PERIOD LOAN
COMPOSITION
|
(Unaudited; Dollars
in thousands)
|
|
|
|
|
|
|
|
December 31,
2023
|
|
December 31,
2022
|
|
Balance
|
% of Total
|
|
Balance
|
% of Total
|
Commercial Real
Estate Portfolio Segmentation:
|
|
|
|
|
|
Multi-family
dwelling
|
$546,694
|
26 %
|
|
$469,233
|
26 %
|
Retail
|
434,913
|
21
|
|
421,617
|
23
|
Industrial and
warehouse
|
307,987
|
15
|
|
192,717
|
11
|
Office
|
284,199
|
13
|
|
257,551
|
14
|
Hospitality
|
235,015
|
11
|
|
214,829
|
12
|
Healthcare
|
175,490
|
8
|
|
136,225
|
7
|
Commercial mixed
use
|
49,079
|
2
|
|
54,976
|
3
|
Other
|
72,982
|
4
|
|
82,156
|
4
|
Total commercial real
estate loans
|
$2,106,359
|
100 %
|
|
$1,829,304
|
100 %
|
|
|
|
|
|
|
Commercial &
Industrial Portfolio Segmentation:
|
|
|
|
|
|
Healthcare and social
assistance
|
$166,490
|
28 %
|
|
$193,052
|
29 %
|
Real estate rental and
leasing
|
70,540
|
12
|
|
72,429
|
11
|
Transportation and
warehousing
|
63,789
|
11
|
|
51,347
|
8
|
Manufacturing
|
54,905
|
9
|
|
60,601
|
9
|
Retail trade
|
43,746
|
7
|
|
56,012
|
9
|
Educational
services
|
41,968
|
7
|
|
46,708
|
7
|
Finance and
insurance
|
33,617
|
6
|
|
28,313
|
4
|
Information
|
22,674
|
4
|
|
23,948
|
4
|
Arts, entertainment and
recreation
|
22,249
|
4
|
|
25,646
|
4
|
Accommodation and food
services
|
13,502
|
2
|
|
17,167
|
3
|
Professional,
scientific and technical services
|
7,998
|
1
|
|
6,451
|
1
|
Public
administration
|
3,019
|
—
|
|
3,789
|
1
|
Other
|
60,575
|
9
|
|
70,934
|
10
|
Total commercial &
industrial loans
|
$605,072
|
100 %
|
|
$656,397
|
100 %
|
|
|
|
Weighted
Average
|
|
Asset
Quality
|
December 31,
2023
|
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
|
$113,129
|
$10,381
|
58 %
|
1.59x
|
|
$106,776
|
$6,353
|
$—
|
|
$—
|
Class B
|
94,702
|
4,376
|
68 %
|
1.50x
|
|
72,154
|
—
|
22,548
|
|
19,047
|
Class C
|
13,116
|
1,639
|
59 %
|
1.38x
|
|
13,116
|
—
|
—
|
|
—
|
Medical
Office
|
40,760
|
6,405
|
61 %
|
1.40x
|
|
40,760
|
—
|
—
|
|
—
|
Lab Space
|
22,492
|
23,461
|
77 %
|
1.34x
|
|
4,062
|
—
|
18,430
|
|
—
|
Total office
(1)
|
$284,199
|
$6,307
|
64 %
|
1.49x
|
|
$236,868
|
$6,353
|
$40,978
|
|
$19,047
|
|
|
(1)
|
Approximately 66% of
the total commercial real estate office balance of $284 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 50 loans.
|
(3)
|
Does not include $31.1
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)
|
|
|
|
|
|
|
|
Dec 31,
2023
|
Sep 30,
2023
|
Jun 30,
2023
|
Mar 31,
2023
|
Dec 31,
2022
|
Deposits:
|
|
|
|
|
|
Noninterest-bearing
demand deposits
|
$693,746
|
$773,261
|
$758,242
|
$829,763
|
$858,953
|
Interest-bearing demand
deposits (in-market)
|
504,959
|
490,217
|
428,306
|
318,365
|
302,044
|
NOW accounts
|
767,036
|
745,778
|
791,887
|
828,700
|
871,875
|
Money market
accounts
|
1,096,959
|
1,111,797
|
1,164,557
|
1,214,014
|
1,255,805
|
Savings
accounts
|
497,223
|
514,526
|
521,185
|
544,604
|
576,250
|
Time deposits
(in-market)
|
1,134,187
|
1,111,942
|
1,048,820
|
924,506
|
795,838
|
In-market
deposits
|
4,694,110
|
4,747,521
|
4,712,997
|
4,659,952
|
4,660,765
|
Wholesale brokered
demand deposits
|
—
|
—
|
—
|
1,233
|
31,153
|
Wholesale brokered time
deposits
|
654,050
|
668,042
|
601,481
|
607,329
|
327,044
|
Wholesale brokered
deposits
|
654,050
|
668,042
|
601,481
|
608,562
|
358,197
|
Total
deposits
|
$5,348,160
|
$5,415,563
|
$5,314,478
|
$5,268,514
|
$5,018,962
|
|
December 31,
2023
|
|
December 31,
2022
|
|
Balance
|
% of Total
Deposits
|
|
Balance
|
% of Total
Deposits
|
Uninsured
Deposits:
|
|
|
|
|
|
Uninsured
deposits (1)
|
$1,260,672
|
24 %
|
|
$1,514,900
|
30 %
|
Less: affiliate
deposits (2)
|
92,645
|
2
|
|
210,444
|
4
|
Uninsured deposits,
excluding affiliate deposits
|
1,168,027
|
22
|
|
1,304,456
|
26
|
Less:
fully-collateralized preferred deposits (3)
|
204,327
|
4
|
|
329,868
|
7
|
Uninsured deposits,
after exclusions
|
$963,700
|
18 %
|
|
$974,588
|
19 %
|
|
|
(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,
2023
|
Dec 31,
2022
|
Contingent
Liquidity:
|
|
|
Federal Home Loan Bank
of Boston
|
$1,086,607
|
$668,295
|
Federal Reserve Bank of
Boston
|
65,759
|
27,059
|
Noninterest-bearing
cash
|
54,970
|
49,727
|
Unencumbered
securities
|
680,857
|
691,893
|
Total
|
$1,888,193
|
$1,436,974
|
|
|
|
Percentage of total
contingent liquidity to uninsured deposits
|
149.8 %
|
94.9 %
|
Percentage of total
contingent liquidity to uninsured deposits, after
exclusions
|
195.9 %
|
147.4 %
|
Washington Trust
Bancorp, Inc. and Subsidiaries
|
CREDIT & ASSET
QUALITY DATA
|
(Unaudited; Dollars in
thousands)
|
|
|
|
Dec 31,
2023
|
Sep 30,
2023
|
Jun 30,
2023
|
Mar 31,
2023
|
Dec 31,
2022
|
Asset Quality
Ratios:
|
|
|
|
|
|
Nonperforming assets to
total assets
|
0.63 %
|
0.48 %
|
0.16 %
|
0.21 %
|
0.19 %
|
Nonaccrual loans to
total loans
|
0.79 %
|
0.60 %
|
0.19 %
|
0.27 %
|
0.25 %
|
Total past due loans to
total loans
|
0.20 %
|
0.17 %
|
0.12 %
|
0.15 %
|
0.23 %
|
Allowance for credit
losses on loans to nonaccrual loans
|
92.02 %
|
119.50 %
|
378.04 %
|
277.40 %
|
296.02 %
|
Allowance for credit
losses on loans to total loans
|
0.73 %
|
0.72 %
|
0.73 %
|
0.74 %
|
0.74 %
|
|
|
|
|
|
|
Nonperforming
Assets:
|
|
|
|
|
|
Commercial real
estate
|
$32,827
|
$22,609
|
$—
|
$1,601
|
$—
|
Commercial &
industrial
|
682
|
696
|
899
|
920
|
—
|
Total
commercial
|
33,509
|
23,305
|
899
|
2,521
|
—
|
Residential real
estate
|
9,626
|
9,446
|
8,542
|
10,470
|
11,894
|
Home equity
|
1,483
|
901
|
966
|
989
|
952
|
Other
consumer
|
—
|
—
|
—
|
—
|
—
|
Total
consumer
|
1,483
|
901
|
966
|
989
|
952
|
Total nonaccrual
loans
|
44,618
|
33,652
|
10,407
|
13,980
|
12,846
|
Other real estate
owned
|
683
|
683
|
683
|
683
|
—
|
Total nonperforming
assets
|
$45,301
|
$34,335
|
$11,090
|
$14,663
|
$12,846
|
|
|
|
|
|
|
Past Due Loans (30
days or more past due):
|
|
|
|
|
|
Commercial real
estate
|
$—
|
$—
|
$—
|
$1,188
|
$1,187
|
Commercial &
industrial
|
10
|
4
|
223
|
229
|
265
|
Total
commercial
|
10
|
4
|
223
|
1,417
|
1,452
|
Residential real
estate
|
8,116
|
7,785
|
4,384
|
5,730
|
8,875
|
Home equity
|
3,196
|
1,925
|
1,509
|
833
|
1,235
|
Other
consumer
|
23
|
19
|
214
|
15
|
16
|
Total
consumer
|
3,219
|
1,944
|
1,723
|
848
|
1,251
|
Total past due
loans
|
$11,345
|
$9,733
|
$6,330
|
$7,995
|
$11,578
|
|
|
|
|
|
|
Accruing loans 90 days
or more past due
|
$—
|
$—
|
$—
|
$—
|
$—
|
Nonaccrual loans
included in past due loans
|
$6,877
|
$5,710
|
$3,672
|
$5,648
|
$7,196
|
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,
2023
|
Sep 30,
2023
|
Jun 30,
2023
|
Mar 31,
2023
|
Dec 31,
2022
|
|
Dec 31,
2023
|
Dec 31,
2022
|
Nonaccrual Loan
Activity:
|
|
|
|
|
|
|
|
|
Balance at beginning of
period
|
$33,652
|
$10,407
|
$13,980
|
$12,846
|
$12,122
|
|
$12,846
|
$14,203
|
Additions to nonaccrual
status
|
12,018
|
25,088
|
600
|
2,570
|
2,485
|
|
40,276
|
3,591
|
Loans returned to
accruing status
|
—
|
(197)
|
(1,329)
|
(110)
|
—
|
|
(1,636)
|
(699)
|
Loans
charged-off
|
(420)
|
(44)
|
(52)
|
(61)
|
(62)
|
|
(577)
|
(184)
|
Loans transferred to
other real estate owned
|
—
|
—
|
—
|
(683)
|
—
|
|
(683)
|
—
|
Payments, payoffs and
other changes
|
(632)
|
(1,602)
|
(2,792)
|
(582)
|
(1,699)
|
|
(5,608)
|
(4,065)
|
Balance at end of
period
|
$44,618
|
$33,652
|
$10,407
|
$13,980
|
$12,846
|
|
$44,618
|
$12,846
|
|
|
|
|
|
|
|
|
|
Allowance for Credit
Losses on Loans:
|
|
|
|
|
|
|
|
|
Balance at beginning of
period
|
$40,213
|
$39,343
|
$38,780
|
$38,027
|
$36,863
|
|
$38,027
|
$39,088
|
Provision for credit
losses on loans (1)
|
1,250
|
900
|
600
|
800
|
900
|
|
3,550
|
(1,429)
|
Charge-offs
|
(420)
|
(44)
|
(52)
|
(61)
|
(62)
|
|
(577)
|
(184)
|
Recoveries
|
14
|
14
|
15
|
14
|
326
|
|
57
|
552
|
Balance at end of
period
|
$41,057
|
$40,213
|
$39,343
|
$38,780
|
$38,027
|
|
$41,057
|
$38,027
|
|
|
|
|
|
|
|
|
|
Allowance for Credit
Losses on Unfunded Commitments:
|
|
|
|
|
|
|
|
Balance at beginning of
period
|
$1,990
|
$2,390
|
$2,290
|
$2,290
|
$2,390
|
|
$2,290
|
$2,161
|
Provision for credit
losses on unfunded commitments (1)
|
(50)
|
(400)
|
100
|
—
|
(100)
|
|
(350)
|
129
|
Balance at end of
period (2)
|
$1,940
|
$1,990
|
$2,390
|
$2,290
|
$2,290
|
|
$1,940
|
$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
|
|
For the Twelve
Months
Ended
|
|
Dec 31,
2023
|
Sep 30,
2023
|
Jun 30,
2023
|
Mar 31,
2023
|
Dec 31,
2022
|
|
Dec 31,
2023
|
Dec 31,
2022
|
Net Loan Charge-Offs
(Recoveries):
|
|
|
|
|
|
|
|
|
Commercial real
estate
|
$373
|
$—
|
$—
|
$—
|
($300)
|
|
$373
|
($445)
|
Commercial &
industrial
|
10
|
4
|
5
|
6
|
10
|
|
25
|
7
|
Total
commercial
|
383
|
4
|
5
|
6
|
(290)
|
|
398
|
(438)
|
Residential real
estate
|
(3)
|
—
|
—
|
—
|
—
|
|
(3)
|
(21)
|
Home equity
|
—
|
(7)
|
(2)
|
(1)
|
(8)
|
|
(10)
|
(12)
|
Other
consumer
|
26
|
33
|
34
|
42
|
34
|
|
135
|
103
|
Total
consumer
|
26
|
26
|
32
|
41
|
26
|
|
125
|
91
|
Total
|
$406
|
$30
|
$37
|
$47
|
($264)
|
|
$520
|
($368)
|
|
|
|
|
|
|
|
|
|
Net charge-offs
(recoveries) to average loans - annualized
|
0.03 %
|
— %
|
— %
|
— %
|
(0.02 %)
|
|
0.01 %
|
(0.01 %)
|
The following tables present average balance and interest rate
information. Tax-exempt income is converted to a fully
taxable equivalent ("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
|
December 31,
2023
|
|
September 30,
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
|
$89,719
|
$1,282
|
5.67 %
|
|
$102,608
|
$1,344
|
5.20 %
|
|
($12,889)
|
($62)
|
0.47 %
|
Mortgage loans held for
sale
|
14,620
|
255
|
6.92
|
|
23,057
|
332
|
5.71
|
|
(8,437)
|
(77)
|
1.21
|
Taxable debt
securities
|
1,163,042
|
7,191
|
2.45
|
|
1,181,915
|
7,271
|
2.44
|
|
(18,873)
|
(80)
|
0.01
|
FHLB stock
|
50,662
|
982
|
7.69
|
|
46,889
|
878
|
7.43
|
|
3,773
|
104
|
0.26
|
Commercial real
estate
|
2,087,447
|
33,260
|
6.32
|
|
2,004,204
|
31,526
|
6.24
|
|
83,243
|
1,734
|
0.08
|
Commercial &
industrial
|
606,822
|
9,903
|
6.47
|
|
609,604
|
9,896
|
6.44
|
|
(2,782)
|
7
|
0.03
|
Total
commercial
|
2,694,269
|
43,163
|
6.36
|
|
2,613,808
|
41,422
|
6.29
|
|
80,461
|
1,741
|
0.07
|
Residential real
estate
|
2,606,432
|
26,303
|
4.00
|
|
2,552,602
|
24,976
|
3.88
|
|
53,830
|
1,327
|
0.12
|
Home equity
|
307,601
|
4,774
|
6.16
|
|
303,144
|
4,514
|
5.91
|
|
4,457
|
260
|
0.25
|
Other
|
19,275
|
238
|
4.90
|
|
18,813
|
225
|
4.74
|
|
462
|
13
|
0.16
|
Total
consumer
|
326,876
|
5,012
|
6.08
|
|
321,957
|
4,739
|
5.84
|
|
4,919
|
273
|
0.24
|
Total loans
|
5,627,577
|
74,478
|
5.25
|
|
5,488,367
|
71,137
|
5.14
|
|
139,210
|
3,341
|
0.11
|
Total interest-earning
assets
|
6,945,620
|
84,188
|
4.81
|
|
6,842,836
|
80,962
|
4.69
|
|
102,784
|
3,226
|
0.12
|
Noninterest-earning
assets
|
245,955
|
|
|
|
272,321
|
|
|
|
(26,366)
|
|
|
Total assets
|
$7,191,575
|
|
|
|
$7,115,157
|
|
|
|
$76,418
|
|
|
Liabilities and
Shareholders' Equity:
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand
deposits (in-
market)
|
$506,365
|
$5,733
|
4.49 %
|
|
$461,760
|
$5,060
|
4.35 %
|
|
$44,605
|
$673
|
0.14 %
|
NOW accounts
|
721,820
|
417
|
0.23
|
|
742,690
|
419
|
0.22
|
|
(20,870)
|
(2)
|
0.01
|
Money market
accounts
|
1,139,403
|
10,339
|
3.60
|
|
1,173,284
|
9,929
|
3.36
|
|
(33,881)
|
410
|
0.24
|
Savings
accounts
|
501,027
|
622
|
0.49
|
|
516,342
|
429
|
0.33
|
|
(15,315)
|
193
|
0.16
|
Time deposits
(in-market)
|
1,127,236
|
11,192
|
3.94
|
|
1,080,395
|
9,880
|
3.63
|
|
46,841
|
1,312
|
0.31
|
Interest-bearing
in-market deposits
|
3,995,851
|
28,303
|
2.81
|
|
3,974,471
|
25,717
|
2.57
|
|
21,380
|
2,586
|
0.24
|
Wholesale brokered
demand deposits
|
—
|
—
|
—
|
|
—
|
—
|
—
|
|
—
|
—
|
—
|
Wholesale brokered time
deposits
|
669,342
|
8,764
|
5.19
|
|
659,624
|
8,352
|
5.02
|
|
9,718
|
412
|
0.17
|
Wholesale brokered
deposits
|
669,342
|
8,764
|
5.19
|
|
659,624
|
8,352
|
5.02
|
|
9,718
|
412
|
0.17
|
Total interest-bearing
deposits
|
4,665,193
|
37,067
|
3.15
|
|
4,634,095
|
34,069
|
2.92
|
|
31,098
|
2,998
|
0.23
|
FHLB
advances
|
1,148,533
|
13,814
|
4.77
|
|
1,053,370
|
12,497
|
4.71
|
|
95,163
|
1,317
|
0.06
|
Junior subordinated
debentures
|
22,681
|
411
|
7.19
|
|
22,681
|
404
|
7.07
|
|
—
|
7
|
0.12
|
Total interest-bearing
liabilities
|
5,836,407
|
51,292
|
3.49
|
|
5,710,146
|
46,970
|
3.26
|
|
126,261
|
4,322
|
0.23
|
Noninterest-bearing
demand deposits
|
734,966
|
|
|
|
773,424
|
|
|
|
(38,458)
|
|
|
Other
liabilities
|
184,143
|
|
|
|
173,572
|
|
|
|
10,571
|
|
|
Shareholders'
equity
|
436,059
|
|
|
|
458,015
|
|
|
|
(21,956)
|
|
|
Total liabilities and
shareholders' equity
|
$7,191,575
|
|
|
|
$7,115,157
|
|
|
|
$76,418
|
|
|
Net interest income
(FTE)
|
|
$32,896
|
|
|
|
$33,992
|
|
|
|
($1,096)
|
|
Interest rate
spread
|
|
|
1.32 %
|
|
|
|
1.43 %
|
|
|
|
(0.11 %)
|
Net interest
margin
|
|
|
1.88 %
|
|
|
|
1.97 %
|
|
|
|
(0.09 %)
|
Interest income amounts presented in the preceding table include
the following adjustments for taxable equivalency:
For the Three Months
Ended
|
Dec 31,
2023
|
|
Sep 30,
2023
|
Change
|
Commercial
loans
|
$242
|
|
$241
|
$1
|
Total
|
$242
|
|
$241
|
$1
|
|
|
|
|
|
|
|
|
|
|
Washington Trust
Bancorp, Inc. and Subsidiaries
|
CONSOLIDATED AVERAGE
BALANCE SHEETS (FTE Basis)
|
(Unaudited; Dollars in
thousands)
|
For the Twelve Months
Ended
|
December 31,
2023
|
December 31,
2022
|
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
|
$101,166
|
$4,975
|
4.92 %
|
$119,932
|
$1,624
|
1.35 %
|
($18,766)
|
$3,351
|
3.57 %
|
Mortgage loans for
sale
|
17,384
|
980
|
5.64
|
29,539
|
1,165
|
3.94
|
(12,155)
|
(185)
|
1.70
|
Taxable debt
securities
|
1,185,102
|
29,059
|
2.45
|
1,121,413
|
21,827
|
1.95
|
63,689
|
7,232
|
0.50
|
FHLB stock
|
46,880
|
3,315
|
7.07
|
20,721
|
548
|
2.64
|
26,159
|
2,767
|
4.43
|
Commercial real
estate
|
1,970,580
|
118,887
|
6.03
|
1,679,300
|
65,660
|
3.91
|
291,280
|
53,227
|
2.12
|
Commercial &
industrial
|
615,494
|
38,326
|
6.23
|
632,938
|
28,099
|
4.44
|
(17,444)
|
10,227
|
1.79
|
Total
commercial
|
2,586,074
|
157,213
|
6.08
|
2,312,238
|
93,759
|
4.05
|
273,836
|
63,454
|
2.03
|
Residential real
estate
|
2,490,991
|
96,080
|
3.86
|
1,960,629
|
65,866
|
3.36
|
530,362
|
30,214
|
0.50
|
Home equity
|
297,396
|
17,129
|
5.76
|
263,578
|
10,139
|
3.85
|
33,818
|
6,990
|
1.91
|
Other
|
18,085
|
854
|
4.72
|
15,799
|
724
|
4.58
|
2,286
|
130
|
0.14
|
Total
consumer
|
315,481
|
17,983
|
5.70
|
279,377
|
10,863
|
3.89
|
36,104
|
7,120
|
1.81
|
Total loans
|
5,392,546
|
271,276
|
5.03
|
4,552,244
|
170,488
|
3.75
|
840,302
|
100,788
|
1.28
|
Total interest-earning
assets
|
6,743,078
|
309,605
|
4.59
|
5,843,849
|
195,652
|
3.35
|
899,229
|
113,953
|
1.24
|
Noninterest-earning
assets
|
255,962
|
|
|
258,906
|
|
|
(2,944)
|
|
|
Total assets
|
$6,999,040
|
|
|
$6,102,755
|
|
|
$896,285
|
|
|
Liabilities and
Shareholders' Equity:
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand
deposits (in-
market)
|
$415,725
|
$17,521
|
4.21 %
|
$263,154
|
$2,891
|
1.10 %
|
$152,571
|
$14,630
|
3.11 %
|
NOW accounts
|
766,492
|
1,594
|
0.21
|
864,084
|
862
|
0.10
|
(97,592)
|
732
|
0.11
|
Money market
accounts
|
1,191,036
|
37,145
|
3.12
|
1,198,714
|
8,954
|
0.75
|
(7,678)
|
28,191
|
2.37
|
Savings
accounts
|
526,275
|
1,687
|
0.32
|
574,349
|
473
|
0.08
|
(48,074)
|
1,214
|
0.24
|
Time deposits
(in-market)
|
1,010,629
|
33,609
|
3.33
|
799,645
|
8,630
|
1.08
|
210,984
|
24,979
|
2.25
|
Interest-bearing
in-market deposits
|
3,910,157
|
91,556
|
2.34
|
3,699,946
|
21,810
|
0.59
|
210,211
|
69,746
|
1.75
|
Wholesale brokered
demand deposits
|
4,015
|
178
|
4.43
|
20,696
|
494
|
2.39
|
(16,681)
|
(316)
|
2.04
|
Wholesale brokered time
deposits
|
602,423
|
28,695
|
4.76
|
386,170
|
3,719
|
0.96
|
216,253
|
24,976
|
3.80
|
Wholesale brokered
deposits
|
606,438
|
28,873
|
4.76
|
406,866
|
4,213
|
1.04
|
199,572
|
24,660
|
3.72
|
Total interest-bearing
deposits
|
4,516,595
|
120,429
|
2.67
|
4,106,812
|
26,023
|
0.63
|
409,783
|
94,406
|
2.04
|
FHLB
advances
|
1,056,726
|
49,589
|
4.69
|
414,263
|
11,713
|
2.83
|
642,463
|
37,876
|
1.86
|
Junior subordinated
debentures
|
22,681
|
1,543
|
6.80
|
22,681
|
739
|
3.26
|
—
|
804
|
3.54
|
Total interest-bearing
liabilities
|
5,596,002
|
171,561
|
3.07
|
4,543,756
|
38,475
|
0.85
|
1,052,246
|
133,086
|
2.22
|
Noninterest-bearing
demand deposits
|
778,152
|
|
|
923,423
|
|
|
(145,271)
|
|
|
Other
liabilities
|
169,842
|
|
|
142,324
|
|
|
27,518
|
|
|
Shareholders'
equity
|
455,044
|
|
|
493,252
|
|
|
(38,208)
|
|
|
Total liabilities and
shareholders' equity
|
$6,999,040
|
|
|
$6,102,755
|
|
|
$896,285
|
|
|
Net interest income
(FTE)
|
|
$138,044
|
|
|
$157,177
|
|
|
($19,133)
|
|
Interest rate
spread
|
|
|
1.52 %
|
|
|
2.50 %
|
|
|
(0.98 %)
|
Net interest
margin
|
|
|
2.05 %
|
|
|
2.69 %
|
|
|
(0.64 %)
|
Interest income amounts presented in the preceding table include
the following adjustments for taxable equivalency:
|
|
|
|
For the Twelve Months
Ended
|
Dec 31,
2023
|
Dec 31,
2022
|
Change
|
Commercial
loans
|
$946
|
$1,187
|
($241)
|
Total
|
$946
|
$1,187
|
($241)
|
Washington Trust
Bancorp, Inc. and Subsidiaries
|
SUPPLEMENTAL
INFORMATION - Calculation of Non-GAAP Financial
Measures
|
(Unaudited; Dollars in
thousands, except per share amounts)
|
|
|
|
Dec 31,
2023
|
Sep 30,
2023
|
Jun 30,
2023
|
Mar 31,
2023
|
Dec 31,
2022
|
Tangible Book Value
per Share:
|
|
|
|
|
|
Total shareholders'
equity, as reported
|
$472,686
|
$431,404
|
$459,161
|
$464,983
|
$453,669
|
Less:
|
|
|
|
|
|
Goodwill
|
63,909
|
63,909
|
63,909
|
63,909
|
63,909
|
Identifiable intangible
assets, net
|
3,711
|
3,919
|
4,130
|
4,342
|
4,554
|
Total tangible
shareholders' equity
|
$405,066
|
$363,576
|
$391,122
|
$396,732
|
$385,206
|
|
|
|
|
|
|
Shares outstanding, as
reported
|
17,031
|
17,019
|
17,019
|
16,986
|
17,183
|
|
|
|
|
|
|
Book value per share -
GAAP
|
$27.75
|
$25.35
|
$26.98
|
$27.37
|
$26.40
|
Tangible book value per
share - Non-GAAP
|
$23.78
|
$21.36
|
$22.98
|
$23.36
|
$22.42
|
|
|
|
|
|
|
Tangible Equity to
Tangible Assets:
|
|
|
|
|
|
Total tangible
shareholders' equity
|
$405,066
|
$363,576
|
$391,122
|
$396,732
|
$385,206
|
|
|
|
|
|
|
Total assets, as
reported
|
$7,202,847
|
$7,183,475
|
$7,011,760
|
$6,859,182
|
$6,660,051
|
Less:
|
|
|
|
|
|
Goodwill
|
63,909
|
63,909
|
63,909
|
63,909
|
63,909
|
Identifiable intangible
assets, net
|
3,711
|
3,919
|
4,130
|
4,342
|
4,554
|
Total tangible
assets
|
$7,135,227
|
$7,115,647
|
$6,943,721
|
$6,790,931
|
$6,591,588
|
|
|
|
|
|
|
Equity to assets -
GAAP
|
6.56 %
|
6.01 %
|
6.55 %
|
6.78 %
|
6.81 %
|
Tangible equity to
tangible assets - Non-GAAP
|
5.68 %
|
5.11 %
|
5.63 %
|
5.84 %
|
5.84 %
|
|
For the Three Months
Ended
|
|
For the Twelve
Months
Ended
|
|
Dec 31,
2023
|
Sep 30,
2023
|
Jun 30,
2023
|
Mar 31,
2023
|
Dec 31,
2022
|
|
Dec 31,
2023
|
Dec 31,
2022
|
Return on Average
Tangible Assets:
|
|
|
|
|
|
|
|
|
Net income, as
reported
|
$12,947
|
$11,161
|
$11,256
|
$12,812
|
$16,573
|
|
$48,176
|
$71,681
|
|
|
|
|
|
|
|
|
|
Total average assets,
as reported
|
$7,191,575
|
$7,115,157
|
$6,939,238
|
$6,743,996
|
$6,480,872
|
|
$6,999,040
|
$6,102,755
|
Less average balances
of:
|
|
|
|
|
|
|
|
|
Goodwill
|
63,909
|
63,909
|
63,909
|
63,909
|
63,909
|
|
63,909
|
63,909
|
Identifiable intangible
assets, net
|
3,812
|
4,021
|
4,233
|
4,445
|
4,657
|
|
4,126
|
4,977
|
Total average tangible
assets
|
$7,123,854
|
$7,047,227
|
$6,871,096
|
$6,675,642
|
$6,412,306
|
|
$6,931,005
|
$6,033,869
|
|
|
|
|
|
|
|
|
|
Return on average
assets - GAAP
|
0.71 %
|
0.62 %
|
0.65 %
|
0.77 %
|
1.01 %
|
|
0.69 %
|
1.17 %
|
Return on average
tangible assets - Non-
GAAP
|
0.72 %
|
0.63 %
|
0.66 %
|
0.78 %
|
1.03 %
|
|
0.70 %
|
1.19 %
|
|
|
|
|
|
|
|
|
|
Return on Average
Tangible Equity:
|
|
|
|
|
|
|
|
|
Net income available to
common
shareholders, as reported
|
$12,931
|
$11,140
|
$11,237
|
$12,783
|
$16,535
|
|
$48,091
|
$71,479
|
|
|
|
|
|
|
|
|
|
Total average equity,
as reported
|
$436,059
|
$458,015
|
$466,227
|
$460,106
|
$438,347
|
|
$455,044
|
$493,252
|
Less average balances
of:
|
|
|
|
|
|
|
|
|
Goodwill
|
63,909
|
63,909
|
63,909
|
63,909
|
63,909
|
|
63,909
|
63,909
|
Identifiable intangible
assets, net
|
3,812
|
4,021
|
4,233
|
4,445
|
4,657
|
|
4,126
|
4,977
|
Total average tangible
equity
|
$368,338
|
$390,085
|
$398,085
|
$391,752
|
$369,781
|
|
$387,009
|
$424,366
|
|
|
|
|
|
|
|
|
|
Return on average
equity - GAAP
|
11.77 %
|
9.65 %
|
9.67 %
|
11.27 %
|
14.96 %
|
|
10.57 %
|
14.49 %
|
Return on average
tangible equity - Non-
GAAP
|
13.93 %
|
11.33 %
|
11.32 %
|
13.23 %
|
17.74 %
|
|
12.43 %
|
16.84 %
|
Category: Earnings
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SOURCE Washington Trust Bancorp, Inc.