WESTERLY, R.I., July 22,
2024 /PRNewswire/ -- Washington Trust Bancorp, Inc.
(Nasdaq: WASH), parent company of The Washington Trust Company,
today announced second quarter 2024 net income of $10.8 million, or $0.63 per diluted share, compared to net income
of $10.9 million, or $0.64 per diluted share, for the first quarter of
2024.
"Washington Trust's second quarter performance reflects our
continued focus on successfully managing through current economic
conditions, while positioning the company for future growth,"
stated Edward O. Handy III,
Washington Trust Chairman and Chief Executive Officer. "During the
quarter, we recorded consistent earnings, maintained credit
quality, and managed expenses; we also introduced new technology
and invested in a marketing campaign designed to generate deposit
growth."
Selected financial highlights for the second quarter of 2024
include:
- Returns on average equity and average assets for the second
quarter were 9.43% and 0.60%, respectively, compared to 9.33% and
0.61%, respectively, for the prior quarter.
- The net interest margin was 1.83% in the second quarter,
compared to 1.84% in the preceding quarter.
- Asset and credit quality metrics remain solid. A
provision for credit losses of $500 thousand was recognized
for the second quarter, down by $200 thousand from the first
quarter.
- Wealth management revenues and mortgage banking revenues, our
two largest sources of noninterest income, increased by 4% and 10%,
respectively, from the preceding quarter.
- Total noninterest expense declined by 1% from the previous
quarter, with reductions in salaries and benefits expense.
- Total loans amounted to $5.6 billion, down by 1% from March 31,
2024.
- In-market deposits (total deposits less wholesale brokered
deposits) amounted to $4.6 billion, down by 1% from March 31,
2024.
Net Interest Income
Net interest income was $31.6
million for the second quarter of 2024, down by $80 thousand, or 0.3%, from the first quarter of
2024. The net interest margin was 1.83% for the second
quarter, a decrease of 1 basis point from the preceding
quarter. Linked quarter changes included:
- Average interest-earning assets increased by
$7 million. The yield on interest-earning assets for the
second quarter was 4.97%, up by 4 basis points from the preceding
quarter.
- Average interest-bearing liabilities increased by $11 million, as average in-market deposits
increased by $36 million while
average wholesale funding balances decreased by $25 million. The cost of interest-bearing
liabilities for the second quarter of 2024 was 3.68%, up by 5 basis
points from the preceding quarter.
Noninterest Income
Noninterest income totaled $16.7
million for the second quarter of 2024, down by $503 thousand, or 3%, from the first quarter of
2024. Included in other noninterest income in the second
quarter of 2024 was a net gain of $988
thousand recognized on the sale of a bank-owned operations
facility. Included in other noninterest income in the first
quarter of 2024 was $2.1 million
associated with a litigation settlement. Excluding these
items, noninterest income was up by $609
thousand, or 4%, from the preceding quarter. Linked
quarter changes included:
- Wealth management revenues amounted to $9.7 million in the second quarter of 2024, up by
$340 thousand, or 4%. This
included an increase of $190
thousand, or 76%, in transaction-based revenues,
concentrated in seasonal tax servicing fee income, as well as an
increase of $150 thousand, or 2%, in
asset-based revenues. The change in asset-based revenues
reflected an increase in the average balance of wealth management
assets under administration ("AUA"), which was up by approximately
$49 million, or 1%, from the preceding quarter. The end
of period AUA balance at June 30, 2024 amounted to
$6.8 billion, down by
$55 million, or 1%, from March 31, 2024.
- Mortgage banking revenues totaled $2.8
million for the second quarter of 2024, up by $255 thousand, or 10%, reflecting higher realized
gains, partially offset by the change in fair value of mortgage
loans held for sale and forward loan commitments. Loans sold
amounted to $110.1 million in the
second quarter of 2024, up by $37.4 million, or 51%. In the second
quarter of 2024, 81% of residential real estate loan originations
were originated for sale, compared to 76% in the preceding
quarter.
Noninterest Expense
Noninterest expense totaled $33.9
million for the second quarter of 2024, down by $453 thousand, or 1%, from the first quarter of
2024. Linked quarter changes included:
- Salaries and employee benefits expense amounted to $21.3 million, down by $515 thousand, or 2%. The decrease
reflected lower staffing levels and payroll tax expense, partially
offset by volume-related increases in mortgage originator
commission expense.
- The remaining change in noninterest expense reflected increases
in outsourced services and advertising and promotion, partially
offset by declines in net occupancy and other expenses.
Income Tax
Income tax expense totaled $3.0
million for the second quarter of 2024, up by $191 thousand from the preceding quarter.
The effective tax rate for the second quarter of 2024 was 21.8%, up
from 20.6% in the preceding quarter, largely due to excess tax
expense associated with the settlement of share-based awards in the
second quarter of 2024. 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 $952 million at
June 30, 2024, down by $18 million, or 2%, from
March 31, 2024, largely due to routine
pay-downs. The securities portfolio represented 13% of total
assets at both June 30, 2024 and March 31, 2024.
Loans
Total loans amounted to $5.6 billion at June 30, 2024, down by
$56 million, or 1%, from the end of
the preceding quarter. These changes included:
- Commercial loans decreased by $22 million, or 1%.
- Residential real estate loans decreased by $27 million, or
1%.
- The consumer loan portfolio decreased by $7 million, or 2%.
Deposits and Borrowings
Total deposits amounted to $5.0 billion at June 30, 2024, compared
to $5.3 billion at the end of
the preceding quarter. Uninsured deposits, after exclusions
(as detailed in the financial tables below) amounted to
$985 million, or 20% of total
deposits, at June 30, 2024.
In-market deposits, which exclude wholesale brokered deposits,
amounted to $4.6 billion at
June 30, 2024, down by $37 million, or 1%, from
March 31, 2024. As of June 30, 2024, in-market
deposits were approximately 61% retail and 39% commercial.
The average size of our in-market deposit accounts was
approximately $35 thousand at June 30, 2024.
Wholesale brokered deposits amounted to $339 million and
were down by $335 million, or 50%, from March 31,
2024.
FHLB advances totaled $1.6 billion at June 30, 2024, up by
$310 million, or 25%, from March 31, 2024. As of
June 30, 2024, contingent liquidity amounted to $1.6 billion and consisted of
noninterest-bearing cash, unencumbered securities, and unused
collateralized borrowing capacity.
Asset Quality
Nonaccrual loans were $30.5 million, or 0.54% of total loans, at
June 30, 2024, compared to $30.7 million, or 0.54% of total loans, at
March 31, 2024. The composition of nonaccrual loans at
June 30, 2024 was 62% commercial and 38% residential and
consumer.
Past due loans were $11.9 million,
or 0.21% of total loans, at June 30, 2024, compared to
$10.0 million, or 0.18% of total
loans, at March 31, 2024. The composition of past due
loans at June 30, 2024 was essentially all residential and
consumer.
The allowance for credit losses ("ACL") on loans amounted to
$42.4 million, or 0.75% of total
loans, at June 30, 2024, compared to $41.9 million, or 0.74% of total loans, at
March 31, 2024. The ACL on unfunded commitments,
included in other liabilities on the Consolidated Balance Sheets,
was $1.7 million at
June 30, 2024, unchanged from March 31, 2024.
The provision for credit losses totaled $500 thousand in
the second quarter of 2024, down by $200 thousand from the
preceding quarter. Net charge-offs amounted to
$27 thousand in the second quarter of 2024, compared to
$52 thousand in the preceding quarter.
Capital and Dividends
Total shareholders' equity was $471.0 million at June 30, 2024, up by
$4.0 million, or 1%, from
March 31, 2024. Net income of $10.8 million and an increase of
$2.6 million in the accumulated
other comprehensive income component of shareholders' equity were
partially offset by $9.6 million in
dividend declarations.
The Board of Directors declared a quarterly dividend of
56 cents per share for the quarter ended June 30,
2024. The dividend was paid on July 12, 2024 to
shareholders of record on July 1, 2024.
Capital levels at June 30, 2024 exceeded the regulatory
minimum levels to be considered well capitalized, with a total
risk-based capital ratio of 11.81% at June 30, 2024, compared
to 11.62% at March 31, 2024. Book value per share was
$27.61 at June 30, 2024,
compared to $27.41 at March 31,
2024.
Conference Call
Washington Trust will host a conference call to discuss its
second quarter results, business highlights, and outlook on
Tuesday, July 23, 2024 at 8:30
a.m. (Eastern Time). Individuals may dial in to the
call at 1-833-470-1428 and enter Access Code 467066. 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 808623. The audio replay will be available
through August 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
September 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)
|
|
|
|
|
|
|
|
Jun 30,
2024
|
Mar 31,
2024
|
Dec 31,
2023
|
Sep 30,
2023
|
Jun 30,
2023
|
Assets:
|
|
|
|
|
|
Cash and due from
banks
|
$103,877
|
$102,136
|
$86,824
|
$109,432
|
$124,877
|
Short-term
investments
|
3,654
|
3,452
|
3,360
|
3,577
|
3,439
|
Mortgage loans held for
sale, at fair value
|
26,116
|
25,462
|
20,077
|
10,550
|
20,872
|
Available for sale debt
securities, at fair value
|
951,828
|
970,060
|
1,000,380
|
958,990
|
1,022,458
|
Federal Home Loan Bank
stock, at cost
|
66,166
|
55,512
|
51,893
|
52,668
|
45,868
|
Loans:
|
|
|
|
|
|
Total loans
|
5,629,102
|
5,685,232
|
5,647,706
|
5,611,115
|
5,381,113
|
Less: allowance for
credit losses on loans
|
42,378
|
41,905
|
41,057
|
40,213
|
39,343
|
Net loans
|
5,586,724
|
5,643,327
|
5,606,649
|
5,570,902
|
5,341,770
|
Premises and equipment,
net
|
31,866
|
31,914
|
32,291
|
31,976
|
32,591
|
Operating lease
right-of-use assets
|
28,387
|
29,216
|
29,364
|
27,882
|
28,633
|
Investment in
bank-owned life insurance
|
105,228
|
104,475
|
103,736
|
103,003
|
102,293
|
Goodwill
|
63,909
|
63,909
|
63,909
|
63,909
|
63,909
|
Identifiable intangible
assets, net
|
3,295
|
3,503
|
3,711
|
3,919
|
4,130
|
Other assets
|
213,310
|
216,158
|
200,653
|
246,667
|
220,920
|
Total assets
|
$7,184,360
|
$7,249,124
|
$7,202,847
|
$7,183,475
|
$7,011,760
|
Liabilities:
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
Noninterest-bearing
deposits
|
$645,661
|
$648,929
|
$693,746
|
$773,261
|
$758,242
|
Interest-bearing
deposits
|
4,330,465
|
4,698,964
|
4,654,414
|
4,642,302
|
4,556,236
|
Total
deposits
|
4,976,126
|
5,347,893
|
5,348,160
|
5,415,563
|
5,314,478
|
Federal Home Loan Bank
advances
|
1,550,000
|
1,240,000
|
1,190,000
|
1,120,000
|
1,040,000
|
Junior subordinated
debentures
|
22,681
|
22,681
|
22,681
|
22,681
|
22,681
|
Operating lease
liabilities
|
31,012
|
31,837
|
32,027
|
30,554
|
31,302
|
Other
liabilities
|
133,584
|
139,793
|
137,293
|
163,273
|
144,138
|
Total
liabilities
|
6,713,403
|
6,782,204
|
6,730,161
|
6,752,071
|
6,552,599
|
Shareholders'
Equity:
|
|
|
|
|
|
Common stock
|
1,085
|
1,085
|
1,085
|
1,085
|
1,085
|
Paid-in
capital
|
125,898
|
126,785
|
126,150
|
126,310
|
125,685
|
Retained
earnings
|
504,350
|
503,175
|
501,917
|
498,521
|
496,996
|
Accumulated other
comprehensive loss
|
(146,326)
|
(148,913)
|
(141,153)
|
(178,734)
|
(148,827)
|
Treasury stock, at
cost
|
(14,050)
|
(15,212)
|
(15,313)
|
(15,778)
|
(15,778)
|
Total shareholders'
equity
|
470,957
|
466,920
|
472,686
|
431,404
|
459,161
|
Total liabilities and
shareholders' equity
|
$7,184,360
|
$7,249,124
|
$7,202,847
|
$7,183,475
|
$7,011,760
|
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 Six Months
Ended
|
|
Jun 30,
2024
|
Mar 31,
2024
|
Dec 31,
2023
|
Sep 30,
2023
|
Jun 30,
2023
|
|
Jun 30,
2024
|
Jun 30,
2023
|
Interest
income:
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
$76,240
|
$75,636
|
$74,236
|
$70,896
|
$65,449
|
|
$151,876
|
$125,198
|
Interest on mortgage
loans held for sale
|
392
|
255
|
255
|
332
|
241
|
|
647
|
393
|
Taxable interest on
debt securities
|
6,944
|
7,096
|
7,191
|
7,271
|
7,403
|
|
14,040
|
14,597
|
Dividends on Federal
Home Loan Bank stock
|
1,124
|
1,073
|
982
|
878
|
858
|
|
2,197
|
1,455
|
Other interest
income
|
1,297
|
1,196
|
1,282
|
1,344
|
1,279
|
|
2,493
|
2,349
|
Total interest and
dividend income
|
85,997
|
85,256
|
83,946
|
80,721
|
75,230
|
|
171,253
|
143,992
|
Interest
expense:
|
|
|
|
|
|
|
|
|
Deposits
|
36,713
|
38,047
|
37,067
|
34,069
|
29,704
|
|
74,760
|
49,293
|
Federal Home Loan Bank
advances
|
17,296
|
15,138
|
13,814
|
12,497
|
11,652
|
|
32,434
|
23,278
|
Junior subordinated
debentures
|
403
|
406
|
411
|
404
|
374
|
|
809
|
728
|
Total interest
expense
|
54,412
|
53,591
|
51,292
|
46,970
|
41,730
|
|
108,003
|
73,299
|
Net interest
income
|
31,585
|
31,665
|
32,654
|
33,751
|
33,500
|
|
63,250
|
70,693
|
Provision for credit
losses
|
500
|
700
|
1,200
|
500
|
700
|
|
1,200
|
1,500
|
Net interest income
after provision for credit losses
|
31,085
|
30,965
|
31,454
|
33,251
|
32,800
|
|
62,050
|
69,193
|
Noninterest
income:
|
|
|
|
|
|
|
|
|
Wealth management
revenues
|
9,678
|
9,338
|
8,881
|
8,948
|
9,048
|
|
19,016
|
17,711
|
Mortgage banking
revenues
|
2,761
|
2,506
|
1,554
|
2,108
|
1,753
|
|
5,267
|
2,998
|
Card interchange
fees
|
1,275
|
1,145
|
1,254
|
1,267
|
1,268
|
|
2,420
|
2,400
|
Service charges on
deposit accounts
|
769
|
685
|
688
|
674
|
667
|
|
1,454
|
1,444
|
Loan related derivative
income
|
49
|
284
|
112
|
1,082
|
247
|
|
333
|
196
|
Income from bank-owned
life insurance
|
753
|
739
|
734
|
710
|
879
|
|
1,492
|
2,044
|
Other income
|
1,375
|
2,466
|
83
|
437
|
463
|
|
3,841
|
815
|
Total noninterest
income
|
16,660
|
17,163
|
13,306
|
15,226
|
14,325
|
|
33,823
|
27,608
|
Noninterest
expense:
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
21,260
|
21,775
|
18,464
|
21,622
|
20,588
|
|
43,035
|
42,372
|
Outsourced
services
|
4,096
|
3,780
|
3,667
|
3,737
|
3,621
|
|
7,876
|
7,117
|
Net
occupancy
|
2,397
|
2,561
|
2,396
|
2,387
|
2,416
|
|
4,958
|
4,853
|
Equipment
|
958
|
1,020
|
1,133
|
1,107
|
1,050
|
|
1,978
|
2,078
|
Legal, audit, and
professional fees
|
741
|
706
|
959
|
1,058
|
978
|
|
1,447
|
1,874
|
FDIC deposit insurance
costs
|
1,404
|
1,441
|
1,239
|
1,185
|
1,371
|
|
2,845
|
2,243
|
Advertising and
promotion
|
661
|
548
|
938
|
789
|
427
|
|
1,209
|
835
|
Amortization of
intangibles
|
208
|
208
|
208
|
211
|
212
|
|
416
|
424
|
Other
expenses
|
2,185
|
2,324
|
3,583
|
2,294
|
2,353
|
|
4,509
|
4,784
|
Total noninterest
expense
|
33,910
|
34,363
|
32,587
|
34,390
|
33,016
|
|
68,273
|
66,580
|
Income before income
taxes
|
13,835
|
13,765
|
12,173
|
14,087
|
14,109
|
|
27,600
|
30,221
|
Income tax expense
(benefit)
|
3,020
|
2,829
|
(774)
|
2,926
|
2,853
|
|
5,849
|
6,153
|
Net income
|
$10,815
|
$10,936
|
$12,947
|
$11,161
|
$11,256
|
|
$21,751
|
$24,068
|
|
|
|
|
|
|
|
|
|
Net income available to
common shareholders
|
$10,807
|
$10,924
|
$12,931
|
$11,140
|
$11,237
|
|
$21,731
|
$24,020
|
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
17,052
|
17,033
|
17,029
|
17,019
|
17,011
|
|
17,042
|
17,042
|
Diluted
|
17,110
|
17,074
|
17,070
|
17,041
|
17,030
|
|
17,082
|
17,085
|
Earnings per common
share:
|
|
|
|
|
|
|
|
|
Basic
|
$0.63
|
$0.64
|
$0.76
|
$0.65
|
$0.66
|
|
$1.28
|
$1.41
|
Diluted
|
$0.63
|
$0.64
|
$0.76
|
$0.65
|
$0.66
|
|
$1.27
|
$1.41
|
|
|
|
|
|
|
|
|
|
Cash dividends declared
per share
|
$0.56
|
$0.56
|
$0.56
|
$0.56
|
$0.56
|
|
$1.12
|
$1.12
|
Washington Trust
Bancorp, Inc. and Subsidiaries
|
SELECTED FINANCIAL
HIGHLIGHTS
|
(Unaudited; Dollars and
shares in thousands, except per share amounts)
|
|
|
|
Jun 30,
2024
|
Mar 31,
2024
|
Dec 31,
2023
|
Sep 30,
2023
|
Jun 30,
2023
|
Share and Equity
Related Data:
|
|
|
|
|
|
Book value per
share
|
$27.61
|
$27.41
|
$27.75
|
$25.35
|
$26.98
|
Tangible book value per
share - Non-GAAP (1)
|
$23.67
|
$23.45
|
$23.78
|
$21.36
|
$22.98
|
Market value per
share
|
$27.41
|
$26.88
|
$32.38
|
$26.33
|
$26.81
|
Shares issued at end of
period
|
17,363
|
17,363
|
17,363
|
17,363
|
17,363
|
Shares outstanding at
end of period
|
17,058
|
17,033
|
17,031
|
17,019
|
17,019
|
|
|
|
|
|
|
Capital Ratios
(2):
|
|
|
|
|
|
Tier 1 risk-based
capital
|
11.01 %
|
10.84 %
|
10.86 %
|
10.77 %
|
11.09 %
|
Total risk-based
capital
|
11.81 %
|
11.62 %
|
11.58 %
|
11.48 %
|
11.81 %
|
Tier 1 leverage
ratio
|
7.82 %
|
7.81 %
|
7.80 %
|
7.87 %
|
8.05 %
|
Common equity tier
1
|
10.59 %
|
10.42 %
|
10.44 %
|
10.35 %
|
10.66 %
|
|
|
|
|
|
|
Balance Sheet
Ratios:
|
|
|
|
|
|
Equity to
assets
|
6.56 %
|
6.44 %
|
6.56 %
|
6.01 %
|
6.55 %
|
Tangible equity to
tangible assets - Non-GAAP (1)
|
5.67 %
|
5.56 %
|
5.68 %
|
5.11 %
|
5.63 %
|
Loans to deposits
(3)
|
112.8 %
|
106.0 %
|
105.2 %
|
103.1 %
|
100.9 %
|
|
For the Three Months
Ended
|
|
For the Six Months
Ended
|
|
Jun 30,
2024
|
Mar 31,
2024
|
Dec 31,
2023
|
Sep 30,
2023
|
Jun 30,
2023
|
|
Jun 30,
2024
|
Jun 30,
2023
|
Performance
Ratios (4):
|
|
|
|
|
|
|
|
|
Net interest margin
(5)
|
1.83 %
|
1.84 %
|
1.88 %
|
1.97 %
|
2.03 %
|
|
1.84 %
|
2.18 %
|
Return on average
assets (net income divided by
average assets)
|
0.60 %
|
0.61 %
|
0.71 %
|
0.62 %
|
0.65 %
|
|
0.61 %
|
0.71 %
|
Return on average
tangible assets - Non-GAAP (1)
|
0.61 %
|
0.61 %
|
0.72 %
|
0.63 %
|
0.66 %
|
|
0.61 %
|
0.72 %
|
Return on average
equity (net income available for
common shareholders divided by average equity)
|
9.43 %
|
9.33 %
|
11.77 %
|
9.65 %
|
9.67 %
|
|
9.38 %
|
10.46 %
|
Return on average
tangible equity - Non-GAAP (1)
|
11.04 %
|
10.89 %
|
13.93 %
|
11.33 %
|
11.32 %
|
|
10.96 %
|
12.26 %
|
Efficiency ratio
(6)
|
70.3 %
|
70.4 %
|
70.9 %
|
70.2 %
|
69.0 %
|
|
70.3 %
|
67.7 %
|
(1) See the section labeled
"Supplemental Information - Calculation of Non-GAAP Financial
Measures" at the end of this document.
|
(2) Estimated for
June 30, 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
|
|
For the Six Months
Ended
|
|
Jun 30,
2024
|
Mar 31,
2024
|
Dec 31,
2023
|
Sep 30,
2023
|
Jun 30,
2023
|
|
Jun 30,
2024
|
Jun 30,
2023
|
Wealth Management
Results
|
|
|
|
|
|
|
|
|
Wealth Management
Revenues:
|
|
|
|
|
|
|
|
|
Asset-based
revenues
|
$9,239
|
$9,089
|
$8,634
|
$8,683
|
$8,562
|
|
$18,328
|
$16,991
|
Transaction-based
revenues
|
439
|
249
|
247
|
265
|
486
|
|
688
|
720
|
Total wealth management
revenues
|
$9,678
|
$9,338
|
$8,881
|
$8,948
|
$9,048
|
|
$19,016
|
$17,711
|
|
|
|
|
|
|
|
|
|
Assets Under
Administration (AUA):
|
|
|
|
|
|
|
|
|
Balance at beginning of
period
|
$6,858,322
|
$6,588,406
|
$6,131,395
|
$6,350,260
|
$6,163,422
|
|
$6,588,406
|
$5,961,990
|
Net investment
appreciation (depreciation) & income
|
108,529
|
364,244
|
503,209
|
(154,269)
|
259,788
|
|
472,773
|
546,050
|
Net client asset
outflows
|
(163,360)
|
(94,328)
|
(46,198)
|
(64,596)
|
(72,950)
|
|
(257,688)
|
(157,780)
|
Balance at end of
period
|
$6,803,491
|
$6,858,322
|
$6,588,406
|
$6,131,395
|
$6,350,260
|
|
$6,803,491
|
$6,350,260
|
|
|
|
|
|
|
|
|
|
Percentage of AUA that
are managed assets
|
91 %
|
91 %
|
91 %
|
91 %
|
91 %
|
|
91 %
|
91 %
|
|
|
|
|
|
|
|
|
|
Mortgage Banking
Results
|
|
|
|
|
|
|
|
|
Mortgage Banking
Revenues:
|
|
|
|
|
|
|
|
|
Realized gains on loan
sales, net (1)
|
$2,205
|
$1,586
|
$1,133
|
$1,746
|
$827
|
|
$3,791
|
$1,403
|
Changes in fair value,
net (2)
|
20
|
324
|
(65)
|
(171)
|
382
|
|
344
|
468
|
Loan servicing fee
income, net (3)
|
536
|
596
|
486
|
533
|
544
|
|
1,132
|
1,127
|
Total mortgage banking
revenues
|
$2,761
|
$2,506
|
$1,554
|
$2,108
|
$1,753
|
|
$5,267
|
$2,998
|
|
|
|
|
|
|
|
|
|
Residential Mortgage
Loan Originations:
|
|
|
|
|
|
|
|
|
Originations for
retention in portfolio (4)
|
$26,520
|
$24,474
|
$39,827
|
$161,603
|
$148,694
|
|
$50,994
|
$258,462
|
Originations for sale
to secondary market (5)
|
110,728
|
78,098
|
76,495
|
78,339
|
77,995
|
|
188,826
|
105,758
|
Total mortgage loan
originations
|
$137,248
|
$102,572
|
$116,322
|
$239,942
|
$226,689
|
|
$239,820
|
$364,220
|
|
|
|
|
|
|
|
|
|
Residential Mortgage
Loans Sold:
|
|
|
|
|
|
|
|
|
Sold with servicing
rights retained
|
$24,570
|
$24,057
|
$28,290
|
$34,046
|
$28,727
|
|
$48,627
|
$45,841
|
Sold with servicing
rights released (5)
|
85,482
|
48,587
|
39,170
|
54,575
|
35,836
|
|
134,069
|
48,050
|
Total mortgage loans
sold
|
$110,052
|
$72,644
|
$67,460
|
$88,621
|
$64,563
|
|
$182,696
|
$93,891
|
(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)
|
|
Jun 30,
2024
|
Mar 31,
2024
|
Dec 31,
2023
|
Sep 30,
2023
|
Jun 30,
2023
|
Loans:
|
|
|
|
|
|
Commercial real
estate (1)
|
$2,191,996
|
$2,158,518
|
$2,106,359
|
$2,063,383
|
$1,940,030
|
Commercial &
industrial
|
558,075
|
613,376
|
605,072
|
611,565
|
611,472
|
Total
commercial
|
2,750,071
|
2,771,894
|
2,711,431
|
2,674,948
|
2,551,502
|
|
|
|
|
|
|
Residential real estate
(2)
|
2,558,533
|
2,585,524
|
2,604,478
|
2,611,100
|
2,510,125
|
|
|
|
|
|
|
Home equity
|
302,027
|
309,302
|
312,594
|
305,683
|
301,116
|
Other
|
18,471
|
18,512
|
19,203
|
19,384
|
18,370
|
Total
consumer
|
320,498
|
327,814
|
331,797
|
325,067
|
319,486
|
Total loans
|
$5,629,102
|
$5,685,232
|
$5,647,706
|
$5,611,115
|
$5,381,113
|
(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.
|
|
June 30,
2024
|
|
December 31,
2023
|
|
Balance
|
% of Total
|
|
Balance
|
% of Total
|
Commercial
Real Estate Loans by Property Location:
|
|
|
|
|
|
Connecticut
|
$839,042
|
38 %
|
|
$815,975
|
39 %
|
Massachusetts
|
688,439
|
31
|
|
645,736
|
31
|
Rhode Island
|
445,406
|
21
|
|
430,899
|
20
|
Subtotal
|
1,972,887
|
90
|
|
1,892,610
|
90
|
All other
states
|
219,109
|
10
|
|
213,749
|
10
|
Total commercial real
estate loans
|
$2,191,996
|
100 %
|
|
$2,106,359
|
100 %
|
Residential Real
Estate Loans by Property Location:
|
|
|
|
|
|
Massachusetts
|
$1,887,955
|
74 %
|
|
$1,928,206
|
74 %
|
Rhode Island
|
482,712
|
19
|
|
481,289
|
19
|
Connecticut
|
159,463
|
6
|
|
165,933
|
6
|
Subtotal
|
2,530,130
|
99
|
|
2,575,428
|
99
|
All other
states
|
28,403
|
1
|
|
29,050
|
1
|
Total residential real
estate loans
|
$2,558,533
|
100 %
|
|
$2,604,478
|
100 %
|
Washington Trust
Bancorp, Inc. and Subsidiaries
|
END OF PERIOD LOAN
COMPOSITION
|
(Unaudited; Dollars
in thousands)
|
|
|
|
|
|
|
|
June 30,
2024
|
|
December 31,
2023
|
|
Balance
|
% of Total
|
|
Balance
|
% of Total
|
Commercial Real
Estate Portfolio Segmentation:
|
|
|
|
|
|
Multi-family
|
$592,791
|
27 %
|
|
$546,694
|
26 %
|
Retail
|
437,765
|
20
|
|
434,913
|
21
|
Industrial and
warehouse
|
336,172
|
15
|
|
307,987
|
15
|
Office
|
300,871
|
14
|
|
284,199
|
13
|
Hospitality
|
219,293
|
10
|
|
235,015
|
11
|
Healthcare
Facility
|
195,564
|
9
|
|
175,490
|
8
|
Mixed-use
|
54,849
|
3
|
|
49,079
|
2
|
Other
|
54,691
|
2
|
|
72,982
|
4
|
Total commercial real
estate loans
|
$2,191,996
|
100 %
|
|
$2,106,359
|
100 %
|
|
|
|
|
|
|
Commercial &
Industrial Portfolio Segmentation:
|
|
|
|
|
|
Healthcare and social
assistance
|
$139,876
|
25 %
|
|
$166,490
|
28 %
|
Real estate rental and
leasing
|
70,202
|
13
|
|
70,540
|
12
|
Transportation and
warehousing
|
51,042
|
9
|
|
63,789
|
11
|
Manufacturing
|
48,818
|
9
|
|
54,905
|
9
|
Educational
services
|
43,277
|
8
|
|
41,968
|
7
|
Retail trade
|
42,950
|
8
|
|
43,746
|
7
|
Finance and
insurance
|
39,092
|
7
|
|
33,617
|
6
|
Information
|
22,720
|
4
|
|
22,674
|
4
|
Arts, entertainment,
and recreation
|
21,460
|
4
|
|
22,249
|
4
|
Accommodation and food
services
|
12,476
|
2
|
|
13,502
|
2
|
Professional,
scientific, and technical services
|
8,309
|
1
|
|
7,998
|
1
|
Public
administration
|
2,877
|
1
|
|
3,019
|
—
|
Other
|
54,976
|
9
|
|
60,575
|
9
|
Total commercial &
industrial loans
|
$558,075
|
100 %
|
|
$605,072
|
100 %
|
|
|
|
Weighted
Average
|
|
Asset
Quality
|
June 30,
2024
|
Balance
(2) (3)
|
Average
Loan
Size (4)
|
Loan to
Value
|
Debt
Service
Coverage
|
|
Pass
|
Special
Mention
|
Classified
|
|
Nonaccrual
(included in
Classified)
|
Non-Owner Occupied
Commercial Real
Estate Office (inclusive of Construction):
|
|
|
|
|
|
|
|
|
|
|
Class A
|
$113,215
|
$9,505
|
59 %
|
1.72x
|
|
$106,903
|
$6,312
|
$—
|
|
$—
|
Class B
|
93,270
|
4,469
|
66 %
|
1.42x
|
|
71,428
|
—
|
21,842
|
|
18,390
|
Class C
|
12,655
|
2,109
|
58 %
|
1.19x
|
|
12,655
|
—
|
—
|
|
—
|
Medical
Office
|
56,332
|
7,551
|
63 %
|
1.33x
|
|
56,332
|
—
|
—
|
|
—
|
Lab Space
|
25,399
|
23,475
|
91 %
|
1.20x
|
|
5,632
|
—
|
19,767
|
|
—
|
Total office
(1)
|
$300,871
|
$6,692
|
66 %
|
1.47x
|
|
$252,950
|
$6,312
|
$41,609
|
|
$18,390
|
(1) Approximately 68% of the
total commercial real estate office balance of $301 million is
secured by income producing properties located in suburban
areas.
Additionally, approximately 32%
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 49 loans.
|
(3) Does not include $27.0
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)
|
|
|
|
|
|
|
|
Jun 30,
2024
|
Mar 31,
2024
|
Dec 31,
2023
|
Sep 30,
2023
|
Jun 30,
2023
|
Deposits:
|
|
|
|
|
|
Noninterest-bearing
demand deposits
|
$645,661
|
$648,929
|
$693,746
|
$773,261
|
$758,242
|
Interest-bearing demand
deposits (in-market)
|
532,316
|
536,923
|
504,959
|
490,217
|
428,306
|
NOW accounts
|
722,797
|
735,617
|
767,036
|
745,778
|
791,887
|
Money market
accounts
|
1,086,088
|
1,111,510
|
1,096,959
|
1,111,797
|
1,164,557
|
Savings
accounts
|
485,208
|
484,678
|
497,223
|
514,526
|
521,185
|
Time deposits
(in-market)
|
1,164,839
|
1,156,516
|
1,134,187
|
1,111,942
|
1,048,820
|
In-market
deposits
|
4,636,909
|
4,674,173
|
4,694,110
|
4,747,521
|
4,712,997
|
Wholesale brokered time
deposits
|
339,217
|
673,720
|
654,050
|
668,042
|
601,481
|
Total
deposits
|
$4,976,126
|
$5,347,893
|
$5,348,160
|
$5,415,563
|
$5,314,478
|
|
June 30,
2024
|
|
December 31,
2023
|
|
Balance
|
% of Total
Deposits
|
|
Balance
|
% of Total
Deposits
|
Uninsured
Deposits:
|
|
|
|
|
|
Uninsured deposits
(1)
|
$1,249,480
|
25 %
|
|
$1,260,672
|
24 %
|
Less: affiliate
deposits (2)
|
90,948
|
2
|
|
92,645
|
2
|
Uninsured deposits,
excluding affiliate deposits
|
1,158,532
|
23
|
|
1,168,027
|
22
|
Less:
fully-collateralized preferred deposits (3)
|
174,028
|
3
|
|
204,327
|
4
|
Uninsured deposits,
after exclusions
|
$984,504
|
20 %
|
|
$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.
|
|
Jun 30,
2024
|
Dec 31,
2023
|
Contingent
Liquidity:
|
|
|
Federal Home Loan Bank
of Boston
|
$801,539
|
$1,086,607
|
Federal Reserve Bank of
Boston
|
86,133
|
65,759
|
Noninterest-bearing
cash
|
28,211
|
54,970
|
Unencumbered
securities
|
685,946
|
680,857
|
Total
|
$1,601,829
|
$1,888,193
|
|
|
|
Percentage of total
contingent liquidity to uninsured deposits
|
128.2 %
|
149.8 %
|
Percentage of total
contingent liquidity to uninsured deposits, after exclusions
|
162.7 %
|
195.9 %
|
Washington Trust
Bancorp, Inc. and Subsidiaries
|
CREDIT & ASSET
QUALITY DATA
|
(Unaudited; Dollars in
thousands)
|
|
|
|
Jun 30,
2024
|
Mar 31,
2024
|
Dec 31,
2023
|
Sep 30,
2023
|
Jun 30,
2023
|
Asset Quality
Ratios:
|
|
|
|
|
|
Nonperforming assets to
total assets
|
0.43 %
|
0.43 %
|
0.63 %
|
0.48 %
|
0.16 %
|
Nonaccrual loans to
total loans
|
0.54 %
|
0.54 %
|
0.79 %
|
0.60 %
|
0.19 %
|
Total past due loans to
total loans
|
0.21 %
|
0.18 %
|
0.20 %
|
0.17 %
|
0.12 %
|
Allowance for credit
losses on loans to nonaccrual loans
|
139.04 %
|
136.45 %
|
92.02 %
|
119.50 %
|
378.04 %
|
Allowance for credit
losses on loans to total loans
|
0.75 %
|
0.74 %
|
0.73 %
|
0.72 %
|
0.73 %
|
|
|
|
|
|
|
Nonperforming
Assets:
|
|
|
|
|
|
Commercial real
estate
|
$18,390
|
$18,729
|
$32,827
|
$22,609
|
$—
|
Commercial &
industrial
|
642
|
668
|
682
|
696
|
899
|
Total
commercial
|
19,032
|
19,397
|
33,509
|
23,305
|
899
|
Residential real
estate
|
9,744
|
9,722
|
9,626
|
9,446
|
8,542
|
Home equity
|
1,703
|
1,591
|
1,483
|
901
|
966
|
Other
consumer
|
—
|
—
|
—
|
—
|
—
|
Total
consumer
|
1,703
|
1,591
|
1,483
|
901
|
966
|
Total nonaccrual
loans
|
30,479
|
30,710
|
44,618
|
33,652
|
10,407
|
Other real estate
owned
|
683
|
683
|
683
|
683
|
683
|
Total nonperforming
assets
|
$31,162
|
$31,393
|
$45,301
|
$34,335
|
$11,090
|
|
|
|
|
|
|
Past Due Loans (30
days or more past due):
|
|
|
|
|
|
Commercial real
estate
|
$—
|
$—
|
$—
|
$—
|
$—
|
Commercial &
industrial
|
2
|
270
|
10
|
4
|
223
|
Total
commercial
|
2
|
270
|
10
|
4
|
223
|
Residential real
estate
|
8,534
|
6,858
|
8,116
|
7,785
|
4,384
|
Home equity
|
3,324
|
2,879
|
3,196
|
1,925
|
1,509
|
Other
consumer
|
20
|
32
|
23
|
19
|
214
|
Total
consumer
|
3,344
|
2,911
|
3,219
|
1,944
|
1,723
|
Total past due
loans
|
$11,880
|
$10,039
|
$11,345
|
$9,733
|
$6,330
|
|
|
|
|
|
|
Accruing loans 90 days
or more past due
|
$—
|
$—
|
$—
|
$—
|
$—
|
Nonaccrual loans
included in past due loans
|
$8,409
|
$5,111
|
$6,877
|
$5,710
|
$3,672
|
Washington Trust
Bancorp, Inc. and Subsidiaries
|
CREDIT & ASSET
QUALITY DATA
|
(Unaudited; Dollars in
thousands)
|
|
For the Three Months
Ended
|
|
For the Six Months
Ended
|
|
Jun 30,
2024
|
Mar 31,
2024
|
Dec 31,
2023
|
Sep 30,
2023
|
Jun 30,
2023
|
|
Jun 30,
2024
|
Jun 30,
2023
|
Nonaccrual Loan
Activity:
|
|
|
|
|
|
|
|
|
Balance at beginning of
period
|
$30,710
|
$44,618
|
$33,652
|
$10,407
|
$13,980
|
|
$44,618
|
$12,846
|
Additions to nonaccrual
status
|
556
|
431
|
12,018
|
25,088
|
600
|
|
988
|
3,170
|
Loans returned to
accruing status
|
(369)
|
(13,764)
|
—
|
(197)
|
(1,329)
|
|
(14,133)
|
(1,439)
|
Loans
charged-off
|
(53)
|
(70)
|
(420)
|
(44)
|
(52)
|
|
(123)
|
(113)
|
Loans transferred to
other real estate owned
|
—
|
—
|
—
|
—
|
—
|
|
—
|
(683)
|
Payments, payoffs, and
other changes
|
(365)
|
(505)
|
(632)
|
(1,602)
|
(2,792)
|
|
(871)
|
(3,374)
|
Balance at end of
period
|
$30,479
|
$30,710
|
$44,618
|
$33,652
|
$10,407
|
|
$30,479
|
$10,407
|
|
|
|
|
|
|
|
|
|
Allowance for Credit
Losses on Loans:
|
|
|
|
|
|
|
|
|
Balance at beginning of
period
|
$41,905
|
$41,057
|
$40,213
|
$39,343
|
$38,780
|
|
$41,057
|
$38,027
|
Provision for credit
losses on loans (1)
|
500
|
900
|
1,250
|
900
|
600
|
|
1,400
|
1,400
|
Charge-offs
|
(53)
|
(70)
|
(420)
|
(44)
|
(52)
|
|
(123)
|
(113)
|
Recoveries
|
26
|
18
|
14
|
14
|
15
|
|
44
|
29
|
Balance at end of
period
|
$42,378
|
$41,905
|
$41,057
|
$40,213
|
$39,343
|
|
$42,378
|
$39,343
|
|
|
|
|
|
|
|
|
|
Allowance for Credit
Losses on Unfunded Commitments:
|
|
|
|
|
|
|
|
Balance at beginning of
period
|
$1,740
|
$1,940
|
$1,990
|
$2,390
|
$2,290
|
|
$1,940
|
$2,290
|
Provision for credit
losses on unfunded commitments (1)
|
—
|
(200)
|
(50)
|
(400)
|
100
|
|
(200)
|
100
|
Balance at end of
period (2)
|
$1,740
|
$1,740
|
$1,940
|
$1,990
|
$2,390
|
|
$1,740
|
$2,390
|
(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 Six Months
Ended
|
|
Jun 30,
2024
|
Mar 31,
2024
|
Dec 31,
2023
|
Sep 30,
2023
|
Jun 30,
2023
|
|
Jun 30,
2024
|
Jun 30,
2023
|
Net Loan Charge-Offs
(Recoveries):
|
|
|
|
|
|
|
|
|
Commercial real
estate
|
$—
|
$—
|
$373
|
$—
|
$—
|
|
$—
|
$—
|
Commercial &
industrial
|
4
|
(1)
|
10
|
4
|
5
|
|
3
|
11
|
Total
commercial
|
4
|
(1)
|
383
|
4
|
5
|
|
3
|
11
|
Residential real
estate
|
—
|
—
|
(3)
|
—
|
—
|
|
—
|
—
|
Home equity
|
(6)
|
(1)
|
—
|
(7)
|
(2)
|
|
(7)
|
(3)
|
Other
consumer
|
29
|
54
|
26
|
33
|
34
|
|
83
|
76
|
Total
consumer
|
23
|
53
|
26
|
26
|
32
|
|
76
|
73
|
Total
|
$27
|
$52
|
$406
|
$30
|
$37
|
|
$79
|
$84
|
|
|
|
|
|
|
|
|
|
Net charge-offs to
average loans - annualized
|
— %
|
— %
|
0.03 %
|
— %
|
— %
|
|
— %
|
— %
|
The following tables present daily average balance, interest,
and yield/rate information, as well as net interest margin on an
FTE basis. Tax-exempt income is converted to an FTE basis
using the statutory federal income tax rate adjusted for applicable
state income taxes net of the related federal tax benefit.
Unrealized gains (losses) on available for sale securities 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
|
June 30,
2024
|
|
March 31,
2024
|
|
Change
|
|
Average
Balance
|
Interest
|
Yield/
Rate
|
|
Average
Balance
|
Interest
|
Yield/
Rate
|
|
Average
Balance
|
Interest
|
Yield/
Rate
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
Cash, federal funds
sold, and short-term
investments
|
$96,934
|
$1,297
|
5.38 %
|
|
$78,992
|
$1,196
|
6.09 %
|
|
$17,942
|
$101
|
(0.71 %)
|
Mortgage loans held for
sale
|
22,755
|
392
|
6.93
|
|
15,452
|
255
|
6.64
|
|
7,303
|
137
|
0.29
|
Taxable debt
securities
|
1,129,573
|
6,944
|
2.47
|
|
1,146,454
|
7,096
|
2.49
|
|
(16,881)
|
(152)
|
(0.02)
|
FHLB stock
|
60,354
|
1,124
|
7.49
|
|
53,858
|
1,073
|
8.01
|
|
6,496
|
51
|
(0.52)
|
Commercial real
estate
|
2,167,785
|
34,707
|
6.44
|
|
2,140,887
|
34,220
|
6.43
|
|
26,898
|
487
|
0.01
|
Commercial &
industrial
|
602,786
|
9,837
|
6.56
|
|
610,747
|
9,892
|
6.51
|
|
(7,961)
|
(55)
|
0.05
|
Total
commercial
|
2,770,571
|
44,544
|
6.47
|
|
2,751,634
|
44,112
|
6.45
|
|
18,937
|
432
|
0.02
|
Residential real
estate
|
2,569,945
|
26,473
|
4.14
|
|
2,592,769
|
26,531
|
4.12
|
|
(22,824)
|
(58)
|
0.02
|
Home equity
|
306,703
|
5,211
|
6.83
|
|
310,231
|
5,004
|
6.49
|
|
(3,528)
|
207
|
0.34
|
Other
|
18,375
|
239
|
5.23
|
|
19,112
|
212
|
4.46
|
|
(737)
|
27
|
0.77
|
Total
consumer
|
325,078
|
5,450
|
6.74
|
|
329,343
|
5,216
|
6.37
|
|
(4,265)
|
234
|
0.37
|
Total loans
|
5,665,594
|
76,467
|
5.43
|
|
5,673,746
|
75,859
|
5.38
|
|
(8,152)
|
608
|
0.05
|
Total interest-earning
assets
|
6,975,210
|
86,224
|
4.97
|
|
6,968,502
|
85,479
|
4.93
|
|
6,708
|
745
|
0.04
|
Noninterest-earning
assets
|
252,268
|
|
|
|
263,333
|
|
|
|
(11,065)
|
|
|
Total assets
|
$7,227,478
|
|
|
|
$7,231,835
|
|
|
|
($4,357)
|
|
|
Liabilities and
Shareholders' Equity:
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand
deposits (in-market)
|
$536,752
|
$6,064
|
4.54 %
|
|
$506,239
|
$5,706
|
4.53 %
|
|
$30,513
|
$358
|
0.01 %
|
NOW accounts
|
712,874
|
388
|
0.22
|
|
720,918
|
375
|
0.21
|
|
(8,044)
|
13
|
0.01
|
Money market
accounts
|
1,120,333
|
10,934
|
3.93
|
|
1,107,591
|
10,417
|
3.78
|
|
12,742
|
517
|
0.15
|
Savings
accounts
|
482,674
|
803
|
0.67
|
|
490,268
|
752
|
0.62
|
|
(7,594)
|
51
|
0.05
|
Time deposits
(in-market)
|
1,157,962
|
11,802
|
4.10
|
|
1,149,442
|
11,720
|
4.10
|
|
8,520
|
82
|
—
|
Interest-bearing
in-market deposits
|
4,010,595
|
29,991
|
3.01
|
|
3,974,458
|
28,970
|
2.93
|
|
36,137
|
1,021
|
0.08
|
Wholesale brokered time
deposits
|
517,424
|
6,722
|
5.23
|
|
699,605
|
9,077
|
5.22
|
|
(182,181)
|
(2,355)
|
0.01
|
Total interest-bearing
deposits
|
4,528,019
|
36,713
|
3.26
|
|
4,674,063
|
38,047
|
3.27
|
|
(146,044)
|
(1,334)
|
(0.01)
|
FHLB
advances
|
1,397,143
|
17,296
|
4.98
|
|
1,239,945
|
15,138
|
4.91
|
|
157,198
|
2,158
|
0.07
|
Junior subordinated
debentures
|
22,681
|
403
|
7.15
|
|
22,681
|
406
|
7.20
|
|
—
|
(3)
|
(0.05)
|
Total interest-bearing
liabilities
|
5,947,843
|
54,412
|
3.68
|
|
5,936,689
|
53,591
|
3.63
|
|
11,154
|
821
|
0.05
|
Noninterest-bearing
demand deposits
|
652,189
|
|
|
|
664,656
|
|
|
|
(12,467)
|
|
|
Other
liabilities
|
166,487
|
|
|
|
159,394
|
|
|
|
7,093
|
|
|
Shareholders'
equity
|
460,959
|
|
|
|
471,096
|
|
|
|
(10,137)
|
|
|
Total liabilities and
shareholders' equity
|
$7,227,478
|
|
|
|
$7,231,835
|
|
|
|
($4,357)
|
|
|
Net interest income
(FTE)
|
|
$31,812
|
|
|
|
$31,888
|
|
|
|
($76)
|
|
Interest rate
spread
|
|
|
1.29 %
|
|
|
|
1.30 %
|
|
|
|
(0.01 %)
|
Net interest
margin
|
|
|
1.83 %
|
|
|
|
1.84 %
|
|
|
|
(0.01 %)
|
Interest income amounts
presented in the preceding table include the following adjustments
for taxable equivalency:
|
|
For the Three Months
Ended
|
Jun 30,
2024
|
Mar 31,
2024
|
Change
|
Commercial
loans
|
$227
|
$223
|
$4
|
Total
|
$227
|
$223
|
$4
|
Washington Trust
Bancorp, Inc. and Subsidiaries
|
CONSOLIDATED AVERAGE
BALANCE SHEETS (FTE Basis)
|
(Unaudited; Dollars in
thousands)
|
For the Six Months
Ended
|
June 30,
2024
|
June 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
|
$87,964
|
$2,493
|
5.70 %
|
$106,253
|
$2,349
|
4.46 %
|
($18,289)
|
$144
|
1.24 %
|
Mortgage loans for
sale
|
19,103
|
647
|
6.81
|
15,905
|
393
|
4.98
|
3,198
|
254
|
1.83
|
Taxable debt
securities
|
1,138,013
|
14,040
|
2.48
|
1,197,935
|
14,597
|
2.46
|
(59,922)
|
(557)
|
0.02
|
FHLB stock
|
57,106
|
2,197
|
7.74
|
44,952
|
1,455
|
6.53
|
12,154
|
742
|
1.21
|
Commercial real
estate
|
2,154,336
|
68,927
|
6.43
|
1,894,087
|
54,100
|
5.76
|
260,249
|
14,827
|
0.67
|
Commercial &
industrial
|
606,766
|
19,728
|
6.54
|
622,896
|
18,528
|
6.00
|
(16,130)
|
1,200
|
0.54
|
Total
commercial
|
2,761,102
|
88,655
|
6.46
|
2,516,983
|
72,628
|
5.82
|
244,119
|
16,027
|
0.64
|
Residential real
estate
|
2,581,357
|
53,004
|
4.13
|
2,400,997
|
44,801
|
3.76
|
180,360
|
8,203
|
0.37
|
Home equity
|
308,467
|
10,215
|
6.66
|
289,288
|
7,841
|
5.47
|
19,179
|
2,374
|
1.19
|
Other
|
18,744
|
451
|
4.84
|
17,110
|
391
|
4.61
|
1,634
|
60
|
0.23
|
Total
consumer
|
327,211
|
10,666
|
6.56
|
306,398
|
8,232
|
5.42
|
20,813
|
2,434
|
1.14
|
Total loans
|
5,669,670
|
152,325
|
5.40
|
5,224,378
|
125,661
|
4.85
|
445,292
|
26,664
|
0.55
|
Total interest-earning
assets
|
6,971,856
|
171,702
|
4.95
|
6,589,423
|
144,455
|
4.42
|
382,433
|
27,247
|
0.53
|
Noninterest-earning
assets
|
257,800
|
|
|
252,733
|
|
|
5,067
|
|
|
Total assets
|
$7,229,656
|
|
|
$6,842,156
|
|
|
$387,500
|
|
|
Liabilities and
Shareholders' Equity:
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand
deposits (in-market)
|
$521,495
|
$11,770
|
4.54 %
|
$346,255
|
$6,728
|
3.92 %
|
$175,240
|
$5,042
|
0.62 %
|
NOW accounts
|
716,896
|
764
|
0.21
|
801,296
|
758
|
0.19
|
(84,400)
|
6
|
0.02
|
Money market
accounts
|
1,113,962
|
21,351
|
3.85
|
1,226,303
|
16,878
|
2.78
|
(112,341)
|
4,473
|
1.07
|
Savings
accounts
|
486,472
|
1,554
|
0.64
|
544,159
|
636
|
0.24
|
(57,687)
|
918
|
0.40
|
Time deposits
(in-market)
|
1,153,702
|
23,522
|
4.10
|
915,898
|
12,537
|
2.76
|
237,804
|
10,985
|
1.34
|
Interest-bearing
in-market deposits
|
3,992,527
|
58,961
|
2.97
|
3,833,911
|
37,537
|
1.97
|
158,616
|
21,424
|
1.00
|
Wholesale brokered
demand deposits
|
—
|
—
|
—
|
8,097
|
177
|
4.41
|
(8,097)
|
(177)
|
(4.41)
|
Wholesale brokered time
deposits
|
608,514
|
15,799
|
5.22
|
539,333
|
11,579
|
4.33
|
69,181
|
4,220
|
0.89
|
Wholesale brokered
deposits
|
608,514
|
15,799
|
5.22
|
547,430
|
11,756
|
4.33
|
61,084
|
4,043
|
0.89
|
Total interest-bearing
deposits
|
4,601,041
|
74,760
|
3.27
|
4,381,341
|
49,293
|
2.27
|
219,700
|
25,467
|
1.00
|
FHLB
advances
|
1,318,544
|
32,434
|
4.95
|
1,011,768
|
23,278
|
4.64
|
306,776
|
9,156
|
0.31
|
Junior subordinated
debentures
|
22,681
|
809
|
7.17
|
22,681
|
728
|
6.47
|
—
|
81
|
0.70
|
Total interest-bearing
liabilities
|
5,942,266
|
108,003
|
3.66
|
5,415,790
|
73,299
|
2.73
|
526,476
|
34,704
|
0.93
|
Noninterest-bearing
demand deposits
|
658,423
|
|
|
802,506
|
|
|
(144,083)
|
|
|
Other
liabilities
|
162,939
|
|
|
160,677
|
|
|
2,262
|
|
|
Shareholders'
equity
|
466,028
|
|
|
463,183
|
|
|
2,845
|
|
|
Total liabilities and
shareholders' equity
|
$7,229,656
|
|
|
$6,842,156
|
|
|
$387,500
|
|
|
Net interest income
(FTE)
|
|
$63,699
|
|
|
$71,156
|
|
|
($7,457)
|
|
Interest rate
spread
|
|
|
1.29 %
|
|
|
1.69 %
|
|
|
(0.40 %)
|
Net interest
margin
|
|
|
1.84 %
|
|
|
2.18 %
|
|
|
(0.34 %)
|
Interest income amounts
presented in the preceding table include the following adjustments
for taxable equivalency:
|
|
For the Six Months
Ended
|
Jun 30,
2024
|
Jun 30,
2023
|
Change
|
Commercial
loans
|
$449
|
$463
|
($14)
|
Total
|
$449
|
$463
|
($14)
|
Washington Trust
Bancorp, Inc. and Subsidiaries
|
SUPPLEMENTAL
INFORMATION - Calculation of Non-GAAP Financial
Measures
|
(Unaudited; Dollars in
thousands, except per share amounts)
|
|
|
|
Jun 30,
2024
|
Mar 31,
2024
|
Dec 31,
2023
|
Sep 30,
2023
|
Jun 30,
2023
|
Tangible Book Value
per Share:
|
|
|
|
|
|
Total shareholders'
equity, as reported
|
$470,957
|
$466,920
|
$472,686
|
$431,404
|
$459,161
|
Less:
|
|
|
|
|
|
Goodwill
|
63,909
|
63,909
|
63,909
|
63,909
|
63,909
|
Identifiable intangible
assets, net
|
3,295
|
3,503
|
3,711
|
3,919
|
4,130
|
Total tangible
shareholders' equity
|
$403,753
|
$399,508
|
$405,066
|
$363,576
|
$391,122
|
|
|
|
|
|
|
Shares outstanding, as
reported
|
17,058
|
17,033
|
17,031
|
17,019
|
17,019
|
|
|
|
|
|
|
Book value per share -
GAAP
|
$27.61
|
$27.41
|
$27.75
|
$25.35
|
$26.98
|
Tangible book value per
share - Non-GAAP
|
$23.67
|
$23.45
|
$23.78
|
$21.36
|
$22.98
|
|
|
|
|
|
|
Tangible Equity to
Tangible Assets:
|
|
|
|
|
|
Total tangible
shareholders' equity
|
$403,753
|
$399,508
|
$405,066
|
$363,576
|
$391,122
|
|
|
|
|
|
|
Total assets, as
reported
|
$7,184,360
|
$7,249,124
|
$7,202,847
|
$7,183,475
|
$7,011,760
|
Less:
|
|
|
|
|
|
Goodwill
|
63,909
|
63,909
|
63,909
|
63,909
|
63,909
|
Identifiable intangible
assets, net
|
3,295
|
3,503
|
3,711
|
3,919
|
4,130
|
Total tangible
assets
|
$7,117,156
|
$7,181,712
|
$7,135,227
|
$7,115,647
|
$6,943,721
|
|
|
|
|
|
|
Equity to assets -
GAAP
|
6.56 %
|
6.44 %
|
6.56 %
|
6.01 %
|
6.55 %
|
Tangible equity to
tangible assets - Non-GAAP
|
5.67 %
|
5.56 %
|
5.68 %
|
5.11 %
|
5.63 %
|
|
For the Three Months
Ended
|
|
For the Six Months
Ended
|
|
Jun 30,
2024
|
Mar 31,
2024
|
Dec 31,
2023
|
Sep 30,
2023
|
Jun 30,
2023
|
|
Jun 30,
2024
|
Jun 30,
2023
|
Return on Average
Tangible Assets:
|
|
|
|
|
|
|
|
|
Net income, as
reported
|
$10,815
|
$10,936
|
$12,947
|
$11,161
|
$11,256
|
|
$21,751
|
$24,068
|
|
|
|
|
|
|
|
|
|
Total average assets,
as reported
|
$7,227,478
|
$7,231,835
|
$7,191,575
|
$7,115,157
|
$6,939,238
|
|
$7,229,656
|
$6,842,156
|
Less average balances
of:
|
|
|
|
|
|
|
|
|
Goodwill
|
63,909
|
63,909
|
63,909
|
63,909
|
63,909
|
|
63,909
|
63,909
|
Identifiable intangible
assets, net
|
3,397
|
3,604
|
3,812
|
4,021
|
4,233
|
|
3,500
|
4,338
|
Total average tangible
assets
|
$7,160,172
|
$7,164,322
|
$7,123,854
|
$7,047,227
|
$6,871,096
|
|
$7,162,247
|
$6,773,909
|
|
|
|
|
|
|
|
|
|
Return on average
assets - GAAP
|
0.60 %
|
0.61 %
|
0.71 %
|
0.62 %
|
0.65 %
|
|
0.61 %
|
0.71 %
|
Return on average
tangible assets - Non-
GAAP
|
0.61 %
|
0.61 %
|
0.72 %
|
0.63 %
|
0.66 %
|
|
0.61 %
|
0.72 %
|
|
|
|
|
|
|
|
|
|
Return on Average
Tangible Equity:
|
|
|
|
|
|
|
|
|
Net income available to
common
shareholders, as reported
|
$10,807
|
$10,924
|
$12,931
|
$11,140
|
$11,237
|
|
$21,731
|
$24,020
|
|
|
|
|
|
|
|
|
|
Total average equity,
as reported
|
$460,959
|
$471,096
|
$436,059
|
$458,015
|
$466,227
|
|
$466,028
|
$463,183
|
Less average balances
of:
|
|
|
|
|
|
|
|
|
Goodwill
|
63,909
|
63,909
|
63,909
|
63,909
|
63,909
|
|
63,909
|
63,909
|
Identifiable intangible
assets, net
|
3,397
|
3,604
|
3,812
|
4,021
|
4,233
|
|
3,500
|
4,338
|
Total average tangible
equity
|
$393,653
|
$403,583
|
$368,338
|
$390,085
|
$398,085
|
|
$398,619
|
$394,936
|
|
|
|
|
|
|
|
|
|
Return on average
equity - GAAP
|
9.43 %
|
9.33 %
|
11.77 %
|
9.65 %
|
9.67 %
|
|
9.38 %
|
10.46 %
|
Return on average
tangible equity - Non-
GAAP
|
11.04 %
|
10.89 %
|
13.93 %
|
11.33 %
|
11.32 %
|
|
10.96 %
|
12.26 %
|
Category: Earnings
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SOURCE Washington Trust Bancorp, Inc.