For transformation of former Union Station into reimagined food hall PROVIDENCE, R.I., March 31, 2025 /PRNewswire/ -- Washington Trust's Commercial Banking Group recently provided $11 million in financing to Track 15 Operating, LLC for construction and equipment financing for Track 15, an 18,000 square foot food hall located in the former Union Station, One Union Station, Providence, R.I. Washington Trust recently provided $11 million in financing to help launch Track 15, a modern food hall in Providence. P ...

Core Points - Washington Trust Charitable Foundation donated a total of $7,000 to local nonprofits in honor of seven employees recognized for their leadership and community service [1][2] - Each of the recognized employees selected a local nonprofit to receive a $1,000 contribution, with beneficiaries including Cranston League for Cranston's Future, Amos House, and Mentor Rhode Island [2][3] - In 2024, Washington Trust employees volunteered over 8,100 hours with more than 225 local nonprofit and community organizations [3] Company Overview - Washington Trust, founded in 1800, is the oldest community bank in the U.S. and the largest state-chartered bank headquartered in Rhode Island [5] - The bank offers a wide range of financial services including commercial banking, mortgage banking, personal banking, and wealth management across Rhode Island, Connecticut, and Massachusetts [5] - Washington Trust is a publicly-owned holding company traded on NASDAQ under the ticker symbol WASH [5]

Financial Position - As of December 31, 2024, Washington Trust had total assets of $6.9 billion, total deposits of $5.1 billion, and total shareholders' equity of $499.7 million[20]. - The total loan portfolio amounted to $5.1 billion, representing 74% of total assets, with commercial loans making up 52% of total loans[21][23]. - Commercial real estate (CRE) loans accounted for 80% of the commercial loan portfolio and 42% of the total loan portfolio as of December 31, 2024[24]. - The residential real estate loan portfolio represented 41% of total loans, with loans originated for sale to the secondary market providing funds for additional lending[27]. - Consumer loans constituted 7% of total loans, with home equity lines and loans representing 94% of the total consumer portfolio[29]. - Washington Trust's investment securities portfolio amounted to $916.3 million, or 13% of total assets, as of December 31, 2024[33]. - The Bank had advances payable to the Federal Home Loan Bank (FHLB) of $1.1 billion, with available borrowing capacity of $753 million as of December 31, 2024[36]. Income and Profitability - Adjusted noninterest income for 2024 was $63.05 million, compared to $56.14 million in 2023, reflecting an increase of approximately 12.5%[201]. - The adjusted income before income taxes for 2024 was $52.03 million, down from $56.48 million in 2023, indicating a decrease of about 7.9%[201]. - The adjusted net income available to common shareholders for 2024 was $40.87 million, compared to $44.84 million in 2023, representing a decline of approximately 8.8%[204]. - The effective tax rate for 2024 was 27.7%, while the adjusted effective tax rate was 21.5%, showing a significant impact from adjustments[201]. - The company reported a net loss of $28.06 million for 2024, compared to a net income of $48.18 million in 2023, indicating a substantial decline in profitability[201]. - Adjusted diluted earnings per common share for 2024 is $2.37, down from $2.63 in 2023, while reported diluted (loss) earnings per common share is ($1.63) compared to $2.82 in 2023[206]. - Adjusted dividend payout ratio increased to 94.51% in 2024 from 85.17% in 2023, while the reported dividend payout ratio is (137.4%) compared to 79.43% in 2023[206]. - Adjusted return on average assets for 2024 is 0.57%, slightly down from 0.64% in 2023, while reported return on average assets is (0.39%) compared to 0.69% in 2023[208]. - Adjusted return on average equity for 2024 is 8.52%, down from 9.85% in 2023, while reported return on average equity is (5.84%) compared to 10.57% in 2023[208]. Regulatory Environment - The Bank is subject to regulation and supervision by the FDIC, RI Division of Banking, and Connecticut Department of Banking[66]. - The Dodd-Frank Act allows state-chartered banks to establish new branches on an interstate basis[72]. - The Bank must obtain prior approval from the RI Division of Banking and the FDIC to acquire another bank or establish a new branch office[72]. - The Federal Reserve may require a banking organization to maintain capital above minimum levels due to financial condition or anticipated growth[78]. - The Bancorp is required to maintain a minimum common equity Tier 1 capital to risk-weighted assets ratio of 4.5%, a minimum Tier 1 capital to risk-weighted assets ratio of 6.0%, and a minimum total capital to risk-weighted assets ratio of 8.0%[81]. - The Bancorp is considered "well capitalized" under the FDIC's prompt corrective action rules if it maintains a total capital to risk-weighted assets ratio of 10.0% or greater[82]. - The Bancorp's ability to pay dividends is restricted if it does not maintain the required capital conservation buffer[87]. - The Federal Reserve may prohibit bank holding companies from paying dividends if such payment is deemed unsafe or unsound, particularly if it exceeds earnings for the period[87]. - The Bank is required to report any cash transactions involving at least $10,000 to the U.S. Treasury under the Bank Secrecy Act[94]. - Financial institutions must file suspicious activity reports for transactions over $5,000 that are suspected to involve illegal funds[94]. - The Bancorp and the Bank made a one-time, permanent election to exclude AOCI from capital[80]. - The capital adequacy rules specify minimum amounts of capital as a percentage of assets that banking organizations must maintain[81]. - The Bancorp's currently outstanding trust preferred securities were grandfathered under the Federal Reserve's capital rule[81]. Market and Economic Conditions - The company faces inflationary pressures, with elevated inflation levels continuing into 2024 and potentially remaining high in 2025, impacting operational results[102]. - The Federal Reserve raised the federal funds rate several times in 2023, which may affect the company's loan origination volume and interest rate spread[102]. - Increased market volatility and adverse changes in financial conditions may negatively impact the company's liquidity and competitive position[110]. - The company may experience higher rates of default in its commercial loan portfolio compared to residential mortgage loans due to economic conditions and borrower financial health[117]. - The company is exposed to credit and market risks in its investment securities portfolio, which could be adversely affected by reduced market liquidity and increased interest rates[125]. - A downgrade of U.S. government agency securities could materially impact the company's operations, earnings, and financial condition[126]. Strategic Initiatives - The company has adopted asset and liability management policies to mitigate adverse effects of interest rate changes on net interest income[106]. - The company relies on third-party vendors for key business infrastructure, and any issues with these vendors could adversely affect service delivery[134]. - The company competes with both financial and non-financial services firms, and emerging technologies may intensify competition in the financial services industry[142]. - The corporation's strategy focuses on leveraging its regional brand to build market share and enhance customer service through both in-person and digital banking solutions[212]. - The Bank agreed to provide $7.0 million in loan subsidies over a five-year period to increase home mortgage loans, home improvement loans, and home refinance loans in specific census tracts in Rhode Island[160]. - The Bank committed to $2.0 million for focused community outreach and marketing efforts over a five-year period, consistent with historical spending levels[160]. - The Bank plans to open two full-service branches in specific census tracts in Rhode Island, including a new branch in Olneyville[160]. - The corporation completed a public offering of 2,198,528 shares at $34.00 per share, raising net proceeds of $70.5 million for investments and balance sheet optimization[214]. - The corporation sold available for sale debt securities with an amortized cost of $409.5 million, realizing a net pre-tax loss of $31.0 million, and reinvested $378.4 million into higher-yielding securities[215]. - The corporation committed to sell residential mortgage loans with an amortized cost of $344.6 million, resulting in a net pre-tax loss of $62.9 million recognized in Q4 2024[216]. - The corporation's risk management program includes oversight of credit risk, interest rate risk, liquidity risk, and operational risk to ensure informed decision-making[218]. Operational Risks - The company faces significant cybersecurity risks that could disrupt operations and damage customer trust[133]. - The company has implemented comprehensive cybersecurity measures, including regular assessments and third-party audits, to mitigate risks associated with cybersecurity threats[165]. - The Audit Committee oversees the cybersecurity program, receiving regular reports on the status of control environments and material security risks[175]. - The Bank may face significant legal risks from regulatory investigations and private actions, which could result in financial liability and reputational damage[162]. - Changes in tax laws and regulations could adversely impact the Bank's financial statements and effective income tax rate[148]. - The Bank's ability to raise additional capital may be affected by market conditions and financial performance, which could lead to regulatory restrictions[151]. - The Bank's stock price and trading volume can be volatile, influenced by various factors including operating results and market conditions[150]. - The Bank's wealth management business is subject to extensive regulation, which could limit activities and impose fines[157]. - The Bank's operations may be adversely affected by natural disasters, acts of terrorism, and other external events, impacting financial condition and results[144].

Core Points - Washington Trust employees built and donated 35 "Welcome Home Kits" valued at over $4,000 to support Crossroads Rhode Island clients transitioning from homelessness to stable housing [1][4] - The kits include personal care items and basic household supplies to assist clients in settling into their new apartments [1][4] - Washington Trust has committed a $50,000 grant to support Crossroads' 'Roads to Home' capital campaign, which aims to create nearly 300 affordable permanent supportive apartments for formerly homeless adults in Providence [4] Company Commitment - Washington Trust emphasizes its commitment to supporting programs that provide resources for individuals and families seeking safe and affordable housing, particularly during the current housing crisis in Rhode Island [4] - The bank's employees actively participated in the collection drive and kit assembly, showcasing their dedication to local community support [2][3] Company Background - Founded in 1800, Washington Trust is the oldest community bank in the United States and the largest state-chartered bank headquartered in Rhode Island [5] - The bank offers a wide range of financial services, including commercial banking, mortgage banking, personal banking, and wealth management, across Rhode Island, Connecticut, and Massachusetts [5]

Core Insights - Washington Trust Bancorp (WASH) reported revenue of $48.98 million for Q4 2024, marking a year-over-year increase of 6.6% and exceeding the Zacks Consensus Estimate by 1.29% [1] - The earnings per share (EPS) for the quarter was $0.59, down from $0.76 a year ago, but above the consensus estimate of $0.58, resulting in an EPS surprise of 1.72% [1] Financial Performance Metrics - The net interest margin was reported at 2%, slightly above the estimated 1.9% [4] - Total noninterest income was $16.04 million, which fell short of the average estimate of $16.57 million [4] - Net interest income reached $32.94 million, surpassing the average estimate of $31.98 million [4] Stock Performance - Over the past month, shares of Washington Trust have returned +3.2%, outperforming the Zacks S&P 500 composite's +1.7% change [3] - The stock currently holds a Zacks Rank 1 (Strong Buy), indicating potential for outperformance in the near term [3]

Core Viewpoint - Washington Trust Bancorp reported quarterly earnings of $0.59 per share, exceeding the Zacks Consensus Estimate of $0.58 per share, but down from $0.76 per share a year ago [1] Financial Performance - The company achieved an earnings surprise of 1.72% for the quarter, having previously exceeded expectations by 14.29% with earnings of $0.64 per share against an estimate of $0.56 [2] - Revenues for the quarter were $48.98 million, surpassing the Zacks Consensus Estimate by 1.29%, and up from $45.96 million year-over-year [3] Market Performance - Washington Trust shares have increased by approximately 3.2% since the beginning of the year, matching the S&P 500's gain of 3.2% [4] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.61 on revenues of $51.03 million, and for the current fiscal year, it is $2.70 on revenues of $211.08 million [8] - The estimate revisions trend for Washington Trust is favorable, resulting in a Zacks Rank 1 (Strong Buy) for the stock, indicating expected outperformance in the near future [7] Industry Context - The Banks - Northeast industry, to which Washington Trust belongs, is currently ranked in the top 9% of over 250 Zacks industries, suggesting a strong performance relative to the broader market [9]

Financial Performance - Washington Trust reported a fourth quarter 2024 net loss of $60.8 million, or a loss of $3.46 per diluted share, compared to a net income of $11.0 million, or $0.64 per diluted share, in the third quarter of 2024[1]. - For the full year 2024, the Corporation reported a net loss of $28.1 million, or a loss of $1.63 per diluted share, compared to net income of $48.2 million, or earnings of $2.82 per diluted share, in the prior year[6]. - Noninterest income was a loss of $77.9 million for the fourth quarter of 2024, primarily due to a pre-tax loss of $93.9 million recognized on balance sheet repositioning transactions[9]. - The net loss for the three months ended December 31, 2024, was $60,791,000, compared to a net income of $10,981,000 in the previous quarter[35]. - Adjusted net income available to common shareholders for the twelve months ended December 31, 2024, was $40,869, down from $44,842 in 2023[72]. - For the three months ended December 31, 2024, the company reported a net loss of $60,791 thousand, compared to a net income of $12,947 thousand for the same period in 2023[74]. Asset and Loan Management - Total loans amounted to $5.1 billion at December 31, 2024, down by $510 million, or 9%, from December 31, 2023, largely due to the reclassification of residential mortgage loans to held for sale[7]. - Total loans decreased to $5,137.8 million from $5,647.7 million year-over-year, a reduction of about 9.0%[33]. - The balance of commercial real estate loans as of December 31, 2024, was $2,154,504 million, an increase from $2,106,359 million year-over-year, reflecting a growth of 2.3%[47]. - Total mortgage loan originations for the three months ended December 31, 2024, amounted to $129,292 million, a decrease of 11% from $116,322 million year-over-year[41]. - The allowance for credit losses on loans was $41.96 million as of December 31, 2024, slightly up from $41.06 million a year earlier, indicating a cautious approach to potential credit risks[33]. Capital and Equity - Total shareholders' equity was $499.7 million at December 31, 2024, down by $2.5 million, or 0.5%, from September 30, 2024[23]. - The company’s common stock increased to $1,223 thousand as of December 31, 2024, from $1,085 thousand in the previous quarter, showing a positive trend in equity[33]. - Retained earnings decreased to $434.0 million from $501.9 million year-over-year, indicating a reduction of approximately 13.5%[33]. - The total shareholders' equity was $499.7 million as of December 31, 2024, down from $472.7 million a year earlier, reflecting a decrease of about 5.7%[33]. - The equity to assets ratio (GAAP) improved to 7.21% as of December 31, 2024, compared to 6.56% a year prior[76]. Income and Revenue Streams - Wealth management revenues in the fourth quarter increased by 1% from the preceding quarter, with end of period assets under administration totaling $7.1 billion, up by 0.4% from September 30, 2024[7]. - Total interest and dividend income for the three months ended December 31, 2024, was $81,839,000, a decrease of 6.4% from $87,586,000 in the previous quarter[35]. - Wealth Management total revenues for the three months ended December 31, 2024, reached $10,049 million, a 13% increase from $8,881 million in the same period last year[41]. - Noninterest (loss) income for the twelve months ended December 31, 2024, was reported at ($27,797), compared to $56,140 in 2023[72]. Credit Quality and Losses - The provision for credit losses totaled $1.0 million in the fourth quarter of 2024, reflecting an increase of $800 thousand from the preceding quarter[22]. - Nonperforming assets to total assets improved from 0.63% in 2023 to 0.34% in 2024, indicating enhanced asset quality[58]. - Nonaccrual loans to total loans decreased from 0.79% in 2023 to 0.45% in 2024, reflecting a positive trend in loan performance[58]. - Net loan charge-offs for Q4 2024 were $1,870 thousand, up from $406 thousand in Q4 2023, indicating increased credit losses[62]. Regulatory and Compliance - Capital levels exceeded regulatory minimums with a total risk-based capital ratio of 12.47% at December 31, 2024, compared to 12.21% at September 30, 2024[25]. - The Tier 1 risk-based capital ratio improved to 11.64% as of December 31, 2024, compared to 11.39% in the previous quarter[37]. - The percentage of total contingent liquidity to uninsured deposits fell from 149.8% in 2023 to 106.9% in 2024[54]. Market and Economic Conditions - Washington Trust Bancorp is actively monitoring economic conditions and customer behavior to adapt its strategies in response to market changes[30]. - The adjusted effective tax rate for 2024 was 23.7%, slightly higher than 20.5% in 2023[72].

Core Viewpoint - Washington Trust Bancorp reported a significant net loss of $60.8 million for the fourth quarter of 2024, primarily due to balance sheet repositioning transactions, although adjusted net income showed a slight decrease compared to the previous quarter [1][5]. Financial Performance - The net loss for the fourth quarter of 2024 was $60.8 million, translating to a loss of $3.46 per diluted share, while adjusted net income was $10.4 million or $0.59 per diluted share, down from $11.0 million or $0.64 per diluted share in the third quarter [1][5]. - For the full year 2024, the Corporation reported a net loss of $28.1 million, compared to a net income of $48.2 million in 2023 [5]. Balance Sheet Repositioning - The Corporation executed balance sheet repositioning transactions, selling available for sale debt securities with an amortized cost of $409 million, resulting in a net pre-tax realized loss of $31.0 million [3]. - Additionally, the Bank committed to sell residential mortgage loans with an amortized cost of $345 million, leading to a net pre-tax loss of $62.9 million [4]. Income and Expenses - Net interest income for the fourth quarter was $32.9 million, a 2% increase from the previous quarter, with a net interest margin of 1.95%, up 10 basis points [6][8]. - Noninterest income recorded a loss of $77.9 million in the fourth quarter, significantly impacted by the pre-tax loss of $93.9 million from the balance sheet repositioning transactions [7][8]. Asset Quality - Nonaccrual loans decreased to $23.3 million, or 0.45% of total loans, down from $31.1 million or 0.56% in the previous quarter [16]. - Past due loans also decreased to $12.0 million, or 0.23% of total loans, compared to $20.3 million or 0.37% in the previous quarter [17]. Capital and Dividends - Total shareholders' equity was $499.7 million at the end of 2024, down 0.5% from the previous quarter, with a total risk-based capital ratio of 12.47% [20][22]. - The Board declared a quarterly dividend of $0.56 per share for the quarter ended December 31, 2024 [21]. Wealth Management and Loans - Wealth management revenues for the fourth quarter increased by 1% to $10.0 million, with assets under administration totaling $7.1 billion, up 0.4% from the previous quarter [8][36]. - Total loans amounted to $5.1 billion at the end of 2024, down 7% from the previous quarter, largely due to the reclassification of residential mortgage loans [12][23].

Core Viewpoint - Washington Trust Bancorp, Inc. is set to release its fourth quarter 2024 earnings on January 29, 2025, followed by a conference call on January 30, 2025, indicating ongoing transparency and communication with investors [1]. Company Overview - Washington Trust Bancorp, Inc. is the publicly-owned holding company of The Washington Trust Company, with total assets of $7.1 billion as of September 30, 2024, highlighting its significant presence in the financial sector [2]. - Established in 1800, Washington Trust is recognized as the oldest community bank in the United States and the largest state-chartered bank headquartered in Rhode Island, emphasizing its historical significance and regional importance [2]. - The bank offers a comprehensive range of services including commercial banking, mortgage banking, personal banking, and wealth management, serving clients in Rhode Island, Connecticut, and Massachusetts, which showcases its diverse service offerings [2]. - Washington Trust is committed to enhancing the financial lives of individuals, businesses, and organizations in New England, reflecting its community-focused mission [2].

Core Viewpoint - Washington Trust Bancorp (WASH) has experienced a downtrend, losing 16.4% over the past four weeks, but a hammer chart pattern suggests a potential trend reversal as buying interest may be emerging [1][2]. Technical Analysis - The hammer chart pattern indicates a possible bottom formation, suggesting that selling pressure may be exhausting and that bulls could be gaining control [2][4]. - A hammer pattern forms when there is a small candle body with a long lower wick, indicating that the stock opened lower, made a new low, but closed near or above the opening price, reflecting buying interest [3][4]. Fundamental Analysis - Recent upward revisions in earnings estimates for WASH serve as a bullish indicator, with a 4.1% increase in the consensus EPS estimate over the last 30 days, suggesting analysts expect better earnings than previously predicted [6][7]. - WASH holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks, indicating strong potential for outperformance in the market [8].