Group 1 - Washington Trust Bancorp (WASH) is expected to report flat earnings of $0.63 per share for the quarter ended June 2025, with revenues projected at $53.92 million, reflecting an 11.8% increase year-over-year [3][12] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a stable outlook from covering analysts [4] - The company currently has a Zacks Rank of 3, suggesting a hold position, which complicates predictions of an earnings beat [12][20] Group 2 - The Earnings ESP for Washington Trust is -10.64%, indicating a bearish sentiment among analysts regarding the company's earnings prospects [12] - In the previous quarter, Washington Trust reported earnings of $0.61 per share, missing the expected $0.62, resulting in a surprise of -1.61% [13] - Over the last four quarters, Washington Trust has beaten consensus EPS estimates three times, showcasing some historical performance strength [14] Group 3 - Citizens Financial Group (CFG), a peer in the Zacks Banks - Northeast industry, is expected to report earnings of $0.88 per share for the same quarter, representing a year-over-year increase of 12.8% [18] - CFG's revenues are projected at $2.01 billion, up 2.2% from the previous year, with a slight upward revision of 0.1% in the consensus EPS estimate over the last 30 days [19] - Citizens Financial Group has an Earnings ESP of +1.55% and a Zacks Rank of 3, suggesting a likelihood of beating the consensus EPS estimate [20]

Company Overview - Washington Trust Bancorp, Inc. is the publicly-owned holding company of The Washington Trust Company, with assets totaling $6.6 billion as of March 31, 2025 [2] - Founded in 1800, it is recognized as the oldest community bank in the United States and the largest state-chartered bank headquartered in Rhode Island [2] - The bank offers a variety of services including commercial banking, mortgage banking, personal banking, and wealth management across Rhode Island, Connecticut, and Massachusetts [2] Upcoming Earnings Release - The company will release its second quarter 2025 earnings on July 21, 2025, after market closes [1] - A conference call with the Corporation's executives is scheduled for July 22, 2025, at 8:30 a.m. ET [1] - Participants can access the call via a toll-free number or through a webcast on the company's website [1]

Core Viewpoint - Investors in the Banks - Northeast sector should consider Webster Financial (WBS) and Washington Trust Bancorp (WASH) for potential value opportunities [1] Group 1: Zacks Rank and Earnings Outlook - Webster Financial has a Zacks Rank of 2 (Buy), indicating a stronger earnings outlook compared to Washington Trust Bancorp, which has a Zacks Rank of 3 (Hold) [3] - WBS has likely experienced a more significant improvement in its earnings outlook than WASH recently [3][7] Group 2: Valuation Metrics - WBS has a forward P/E ratio of 9.57, while WASH has a forward P/E of 10.86 [5] - The PEG ratio for WBS is 0.71, compared to WASH's PEG ratio of 0.89, indicating WBS may offer better value considering expected earnings growth [5] - WBS has a P/B ratio of 1.03, slightly lower than WASH's P/B ratio of 1.04, suggesting WBS is more favorably valued relative to its book value [6] Group 3: Value Grades - Based on the aforementioned valuation metrics, WBS has earned a Value grade of B, while WASH has a Value grade of C [6]

Core Insights - Las Vegas Sands has contributed $515,000 to The WASH Foundation in 2025, increasing total contributions to over $6.1 million since 2014 [1][2][4] Group 1: Funding and Initiatives - The 2025 Sands Cares investment supports three main priorities: hygiene supplies for those in need, funding local water initiatives, and expanding hygiene education programs globally [2][4] - The Global Hygiene Kit Build aims to assemble 70,000 hygiene kits for distribution, with a total of 1,034,000 kits produced since 2014 [4][5] - The Drop by Drop Project continues to provide grants to local nonprofits in Macao and Singapore, focusing on water stewardship and community engagement [5][6] Group 2: Partnership and Impact - The partnership with The WASH Foundation has led to significant milestones, including the transformation of a recycling center into a soap manufacturing operation and the introduction of mobile shower units for the homeless [3][7] - Since 2011, Sands and its partners have diverted over 663,000 pounds of waste and distributed 4.7 million bars of soap to those in need [7][8] - The collaboration enhances corporate responsibility efforts by engaging team members in volunteer work and promoting environmental advocacy [8][12] Group 3: Organizational Background - The WASH Foundation aims to provide safe water, sanitation, and hygiene to the 4.2 billion people lacking access to these resources [2][13] - Since its establishment in 2009, The WASH Foundation has served over 17.4 million people and distributed over 91.3 million bars of soap [14]

December 2024 Investor Presentation NASDAQ: WASH Disclaimers 2 Summary of December Strategic Actions Common stock offering and balance sheet repositioning will result in improved future earnings, higher capital levels to support growth and an improved interest rate risk profile | | | Announced common stock offering on 12/12/2024 | | | --- | --- | --- | --- | | 1 | Common Stock | Issued ~2.2 million new shares at $34 per/share o 6.3% discount to last sale (12/12/2024) | $70 million(1) | | | Offering | Net ca ...

[PART I. Financial Information](index=4&type=section&id=PART%20I.%20Financial%20Information) This section covers the unaudited financial statements, management's analysis, market risk, and internal controls for the quarter ended March 31, 2025 [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) Unaudited Q1 2025 financial statements show total assets decreased to **$6.59 billion**, net income rose to **$12.2 million**, and shareholders' equity increased to **$521.7 million** Consolidated Balance Sheet Highlights (Unaudited) | (In millions) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$6,586.015** | **$6,930.647** | | Net Loans | $5,055.154 | $5,095.878 | | Available for sale debt securities | $917.545 | $916.305 | | **Total Liabilities** | **$6,064.335** | **$6,430.919** | | Total Deposits | $5,040.581 | $5,115.800 | | Federal Home Loan Bank advances | $850.000 | $1,125.000 | | **Total Shareholders' Equity** | **$521.680** | **$499.728** | Consolidated Income Statement Highlights (Unaudited) | (In millions) | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | Net Interest Income | $36.422 | $31.665 | | Provision for credit losses | $1.200 | $0.700 | | Total Noninterest Income | $22.643 | $17.163 | | Total Noninterest Expense | $42.196 | $34.363 | | **Net Income** | **$12.179** | **$10.936** | | **Diluted EPS** | **$0.63** | **$0.64** | - In Q1 2025, the company completed sales-leaseback transactions for five branch locations, resulting in a pre-tax net gain of **$7.0 million**[83](index=83&type=chunk)[139](index=139&type=chunk) - Concurrently, the termination of the qualified pension plan led to a pre-tax non-cash settlement charge of **$6.4 million**[83](index=83&type=chunk)[139](index=139&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=41&type=section&id=Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's discussion highlights **Q1 2025 net income of $12.2 million**, driven by increased net interest income and NIM expansion, alongside a **5% decrease in total assets** due to strategic balance sheet repositioning Q1 2025 vs Q1 2024 Performance Summary | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Net Income | $12.2 million | $10.9 million | +11% | | Adjusted Net Income (non-GAAP) | $11.8 million | $9.4 million | +26% | | Diluted EPS | $0.63 | $0.64 | -1.6% | | Adjusted Diluted EPS (non-GAAP) | $0.61 | $0.55 | +10.9% | | Net Interest Margin (FTE) | 2.29% | 1.84% | +45 bps | - The improvement in net interest income and NIM was largely driven by balance sheet repositioning transactions from December 2024, which included selling lower-yielding assets and paying down higher-cost FHLB advances and wholesale deposits[200](index=200&type=chunk) - Total assets decreased by **$344.6 million (5%)** from year-end 2024, primarily due to a **$275.0 million (24%)** reduction in FHLB advances and a **$75.2 million (1%)** decrease in total deposits, reflecting a strategic shift from wholesale to in-market funding[237](index=237&type=chunk) [Results of Operations](index=47&type=section&id=Results%20of%20Operations) Q1 2025 net income was **$12.2 million**, influenced by a **$7.0 million gain** on property sales and a **$6.4 million pension charge**, with adjusted net income rising **26%** - Q1 2025 results include a **$7.0 million** pre-tax gain on the sale of bank-owned properties and a **$6.4 million** pre-tax pension plan settlement charge[194](index=194&type=chunk) Q1 2025 vs Q1 2024 Key Metrics | (In millions) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Interest Income | $36.422 | $31.665 | | Noninterest Income | $22.643 | $17.163 | | Noninterest Expense | $42.196 | $34.363 | | Net Income | $12.179 | $10.936 | [Financial Condition](index=56&type=section&id=Financial%20Condition) Total assets decreased **5% to $6.59 billion** due to strategic loan sales and debt reduction, while shareholders' equity increased **4% to $521.7 million** - The sale of residential mortgage loans held for sale was completed on January 24, 2025[237](index=237&type=chunk) - The proceeds, along with in-market deposit growth, were used to pay down FHLB advances and wholesale brokered time deposits[237](index=237&type=chunk) Key Balance Sheet Changes (Q1 2025 vs YE 2024) | (In millions) | March 31, 2025 | December 31, 2024 | Change $ | Change % | | :--- | :--- | :--- | :--- | :--- | | Total Assets | $6,586.015 | $6,930.647 | ($344.632) | (5%) | | Total Loans | $5,096.210 | $5,137.838 | ($41.628) | (1%) | | Total Deposits | $5,040.581 | $5,115.800 | ($75.219) | (1%) | | FHLB Advances | $850.000 | $1,125.000 | ($275.000) | (24%) | [Asset Quality](index=62&type=section&id=Asset%20Quality) Asset quality remained stable, with nonperforming assets decreasing to **$21.6 million** and ACL coverage of nonaccrual loans strengthening to **189.85%** Asset Quality Metrics | Metric | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Nonperforming assets | $21.626 million | $23.307 million | | Nonperforming assets to total assets | 0.33% | 0.34% | | ACL to total loans | 0.81% | 0.82% | | ACL to nonaccrual loans | 189.85% | 180.03% | - Net charge-offs for Q1 2025 were **$2.3 million**, compared to just **$0.052 million** in Q1 2024[212](index=212&type=chunk)[288](index=288&type=chunk) - The increase was mainly from a **$2.4 million** partial charge-off on one CRE office loan[212](index=212&type=chunk)[288](index=288&type=chunk) - Potential problem loans, which are not included in nonperforming assets, were identified at **$27.8 million**, slightly down from **$28.2 million** at year-end 2024[297](index=297&type=chunk) [Liquidity and Capital Resources](index=67&type=section&id=Liquidity%20and%20Capital%20Resources) The Corporation maintained strong liquidity, with total contingent liquidity increasing to **$1.75 billion**, and remains 'well capitalized' with a **13.13%** total risk-based capital ratio Contingent Liquidity Sources | (In millions) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | FHLB of Boston | $1,047.209 | $752.951 | | Federal Reserve Bank of Boston | $113.746 | $70.286 | | Available cash liquidity | $43.350 | $36.647 | | Unencumbered securities | $548.483 | $597.771 | | **Total contingent liquidity** | **$1,752.788** | **$1,457.655** | - The Corporation and the Bank are considered 'well capitalized,' with a total risk-based capital ratio of **13.13%** at March 31, 2025[329](index=329&type=chunk) - Total shareholders' equity increased by **$22.0 million** from year-end 2024, due to **$12.2 million** in net income and a **$20.0 million** improvement in AOCL, partially offset by **$11.0 million** in dividends[327](index=327&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=72&type=section&id=Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's market risk profile indicates short-term asset sensitivity, with net interest income projected to increase in a rising rate environment over 12 months, becoming liability-sensitive thereafter - The company's interest rate risk profile is **asset-sensitive** in the near term (1-12 months) and becomes **liability-sensitive** in the medium term (13-24 months)[340](index=340&type=chunk) Estimated Change in Net Interest Income from Parallel Rate Shifts (as of March 31, 2025) | Rate Change | Months 1 - 12 | Months 13 - 24 | | :--- | :--- | :--- | | +300 bps | +3.49% | -1.36% | | +200 bps | +2.01% | -1.02% | | +100 bps | +0.55% | -1.09% | | -100 bps | -1.99% | -1.90% | [Item 4. Controls and Procedures](index=72&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal controls over financial reporting during the quarter - The principal executive officer and principal financial officer concluded that the Corporation's disclosure controls and procedures are effective as of March 31, 2025[349](index=349&type=chunk) - No changes in internal controls over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[350](index=350&type=chunk) [PART II. Other Information](index=72&type=section&id=PART%20II.%20Other%20Information) This section covers legal proceedings, risk factors, equity sales, other information, and exhibits for the reporting period [Item 1. Legal Proceedings](index=72&type=section&id=Item%201.%20Legal%20Proceedings) Management anticipates no material financial impact from ongoing legal proceedings arising in the ordinary course of business - Management does not expect ongoing legal proceedings to materially affect the Corporation's financial condition or results[351](index=351&type=chunk) [Item 1A. Risk Factors](index=72&type=section&id=Item%201A.%20Risk%20Factors) No material changes to previously disclosed risk factors were reported for the quarter - No material changes to risk factors were reported for the quarter[352](index=352&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=72&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The Corporation reported no unregistered sales of equity securities during the period - None[353](index=353&type=chunk) [Item 5. Other Information](index=72&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted, terminated, or modified Rule 10b5-1 or non-Rule 10b5-1 trading arrangements in Q1 2025 - No directors or officers adopted, terminated, or modified any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements in Q1 2025[354](index=354&type=chunk) [Item 6. Exhibits](index=73&type=section&id=Item%206.%20Exhibits) The report includes various exhibits, such as CEO and CFO certifications and Inline XBRL financial data - Exhibits filed include CEO/CFO certifications (31.1, 31.2, 32.1) and financial data in Inline XBRL format (101, 104)[355](index=355&type=chunk)

Financial Performance - Washington Trust Bancorp reported revenue of $59.07 million for the quarter ended March 2025, representing a 21% increase year-over-year [1] - The earnings per share (EPS) for the quarter was $0.61, a slight decrease from $0.64 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate of $52.98 million by 11.50%, while the EPS fell short of the consensus estimate of $0.62 by 1.61% [1] Key Metrics - The net interest margin was reported at 2.3%, matching the average estimate from two analysts [4] - The efficiency ratio was 71.4%, higher than the estimated 69.5% by two analysts [4] - Total noninterest income was $22.64 million, significantly above the estimated $16.28 million [4] - Net interest income was reported at $36.42 million, slightly below the average estimate of $36.69 million [4] Stock Performance - Over the past month, shares of Washington Trust have returned -13.1%, compared to a -5.6% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Washington Trust Bancorp (WASH) came out with quarterly earnings of $0.61 per share, missing the Zacks Consensus Estimate of $0.62 per share. This compares to earnings of $0.64 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -1.61%. A quarter ago, it was expected that this holding company for The Washington Trust Co. Would post earnings of $0.58 per share when it actually produced earnings of $0.59, delivering a surprise of 1. ...

Financial Data and Key Metrics Changes - The company reported net income of $12.2 million, or $0.63 per share, with adjusted net income at $11.8 million, or $0.61 per share [11] - Net interest income increased to $36.4 million, up by $3.5 million or 11% on a linked quarter basis, with the margin at 229 basis points, reflecting a 34 basis point improvement [12] - Total loans decreased by $42 million or 1% from the previous quarter, including a 1% reduction in both residential and commercial loans [16] - In-market deposits reached an all-time high of $5.13 billion, up by $195 million or 4% [17] - Total equity increased to $522 million, up by $22 million from the end of Q4 [17] - The CET1 ratio improved by 56 basis points to 11.76% [18] Business Line Data and Key Metrics Changes - Wealth management revenues were $9.9 million, down by $158,000 or 2% [13] - Mortgage banking revenues totaled $2.3 million, down by $544,000 or 19% [13] - The mortgage pipeline at March 31 was $95 million, up by $35 million or 59% from the end of December [14] Market Data and Key Metrics Changes - Broker deposits decreased by $270 million, and FHLB borrowings were down by $275 million, reflecting increases in deposits and cash redeployment [17] - The loan-to-deposit ratio decreased from 105.5% to 100.7% [17] Company Strategy and Development Direction - The company is focused on deposit growth strategies, achieving results in both in-market deposits and new households [7] - Retail branches are competing effectively, supplemented by a team of retail sales officers dedicated to enhancing loan and deposit opportunities [8] - The company aims for low single-digit growth in loans, with a strong pipeline building [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving low single-digit growth despite challenges in the residential mortgage portfolio and elevated payoffs [8] - The company remains committed to serving communities and stakeholders amid uncertain times [9] - Management indicated that the net interest margin is expected to rise gradually, with guidance for Q2 set at 235 basis points [35] Other Important Information - A pre-tax non-cash pension settlement charge of $6.4 million was recognized within non-interest expenses due to the termination of the qualified pension plan [14] - The effective tax rate for the first quarter was 22.3%, with an expected full-year rate of 22.4% [15] Q&A Session Summary Question: Impact of sale-leaseback and pension curtailment on operating costs - The sale-leaseback adds about $700,000 to occupancy and equipment costs annually, and there are no ongoing expenses related to the pension [24][26] Question: Size and complexion of loan pipelines - The commercial pipeline is a little over $100 million, with strong early-stage activity, while the residential side is expected to grow seasonally [30][32] Question: Expectations for net interest margin - The company anticipates a steady rise in net interest margin, with guidance for Q2 at 235 basis points [35] Question: Dividend payout ratio targets - The company aims to lower the dividend payout ratio, targeting the mid to low 80s by the end of the year [37] Question: Interest rate sensitivity and margin outlook - The company has moved closer to rate neutral due to recent restructuring, with less upside to future rate reductions for margin improvement [45] Question: Drivers of in-market core deposit growth - Good organic deposit growth was noted, with some growth attributed to a single relationship and targeted efforts by newly hired retail sales officers [48] Question: Details on non-accruing loans and credit quality - Management provided updates on specific non-accruing loans, indicating ongoing efforts to resolve issues and improve occupancy rates [66][74] Question: Consideration of stock buybacks - The board is considering stock buybacks as part of capital management, but no plan is currently in place [78]

Financial Data and Key Metrics Changes - The company reported net income of $12.2 million, or $0.63 per share, with adjusted net income at $11.8 million, or $0.61 per share [11] - Net interest income increased to $36.4 million, up by $3.5 million or 11% on a linked quarter basis, with a margin of 229 basis points, reflecting a 34 basis point improvement [12] - Total loans decreased by $42 million or 1% from the previous quarter, including a 1% reduction in both residential and commercial loans [16] - In-market deposits reached an all-time high of $5.13 billion, up by $195 million or 4% [17] - Total equity increased to $522 million, up by $22 million from the end of Q4 [17] - The CET1 capital ratio improved by 56 basis points to 11.76% [18] Business Line Data and Key Metrics Changes - Wealth management revenues decreased to $9.9 million, down by $158,000 or 2% [13] - Mortgage banking revenues totaled $2.3 million, down by $544,000 or 19% [13] - The mortgage pipeline at March 31 was $95 million, up by $35 million or 59% from the end of December [14] Market Data and Key Metrics Changes - Broker deposits decreased by $270 million, and FHLB borrowings were down by $275 million, reflecting increases in deposits and cash redeployment [17] - The loan-to-deposit ratio decreased from 105.5% to 100.7% [17] Company Strategy and Development Direction - The company is focused on deposit growth strategies, achieving results in both in-market deposits and new households [7] - Retail branches are competing effectively, supplemented by a team of retail sales officers dedicated to enhancing loan and deposit opportunities [8] - The company aims for low single-digit growth in loans, with a strong pipeline building [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving low single-digit growth in loans despite challenges in the mortgage portfolio [30] - The company is closely monitoring the Fed's rate policy, with expectations for a net interest margin of 235 basis points for the next quarter [35] - Management indicated that the effective tax rate for the full year is expected to be 22.4% [16] Other Important Information - A pre-tax non-cash pension settlement charge of $6.4 million was recognized within non-interest expenses [14] - The allowance for credit losses totaled $41.1 million, providing MPL coverage of 190% [18] Q&A Session Summary Question: Impact of sale-leaseback and pension curtailment on operating costs - The sale-leaseback adds about $700,000 to occupancy and equipment costs annually, and there are no ongoing expenses related to the pension [24][26] Question: Size and complexion of loan pipelines - The commercial pipeline is a little over $100 million, with strong early-stage activity [30] Question: Expectations for net interest margin - The company anticipates a steady rise in net interest margin, with guidance limited to the next quarter [35] Question: Dividend payout ratio targets - The company aims to lower the dividend payout ratio, expecting to be in the mid to low 80s by the end of the year [37] Question: Interest rate sensitivity changes - The company has moved closer to rate neutral due to recent restructuring, reducing liability sensitivity [45] Question: Drivers of in-market core deposit growth - Strong organic deposit growth and targeted efforts by newly hired retail sales officers contributed to deposit growth [48] Question: Details on credit quality and specific loans - Management provided updates on non-accruing loans and ongoing efforts to resolve issues with specific properties [66][70]