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].

Core Viewpoint - The upgrade of Washington Trust to a Zacks Rank 1 (Strong Buy) reflects a positive earnings outlook, which could lead to increased buying pressure and a rise in stock price [1][12]. Earnings Estimates and Business Outlook - Rising earnings estimates for Washington Trust indicate an improvement in the company's underlying business, suggesting that investors should respond positively by pushing the stock higher [2]. - Over the past three months, the Zacks Consensus Estimate for Washington Trust has increased by 4.6% [4]. - The company is expected to earn $2.49 per share for the fiscal year ending December 2024, representing a year-over-year change of -11.7% [9]. Zacks Rating System - The Zacks Rank stock-rating system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [3]. - Washington Trust's upgrade to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, indicating a strong potential for near-term price movement [11]. - The Zacks rating system maintains an equal proportion of 'buy' and 'sell' ratings across its universe of over 4000 stocks, ensuring a balanced approach to stock recommendations [10]. Impact of Earnings Estimate Revisions - Changes in earnings estimates are strongly correlated with near-term stock price movements, influenced by institutional investors who adjust their valuations based on these estimates [7]. - Tracking earnings estimate revisions can be a rewarding strategy for investment decisions, highlighting the importance of the Zacks Rank system in harnessing this data [8].

Group 1 - Washington Trust Bancorp, Inc. (WASH) has seen a 3.9% increase in the Zacks Consensus Estimate for its next year earnings over the last 60 days [1] - The company has a dividend yield of 7.3%, significantly higher than the industry average of 2.5% [4]

WESTERLY, R.I., Dec. 23, 2024 /PRNewswire/ -- The Washington Trust Company ("Washington Trust") recently announced that it has made charitable contributions and in-kind donations to 40 local nonprofit organizations to support their outreach efforts this holiday season. Washington Trust and its employees recently supported 40 Rhode Island-based community organizations during the holiday season through a combination of grant funding, toys, gifts, gift cards, and more. Donations benefited local families via ...

WESTERLY, R.I., Dec. 12, 2024 /PRNewswire/ -- Washington Trust Bancorp, Inc. (Nasdaq: WASH) (the "Corporation"), parent company of The Washington Trust Company, of Westerly (the "Bank"), today announced the pricing of its previously announced underwritten public offering of 1,911,764 shares of its common stock at a public offering price of $34.00 per share.  The expected proceeds to the Corporation, after deducting underwriting discounts and commissions but before deducting operating expenses payable by the ...

WESTERLY, R.I., Dec. 12, 2024 /PRNewswire/ -- Washington Trust Bancorp, Inc. (Nasdaq: WASH) (the "Corporation"), parent company of The Washington Trust Company, of Westerly (the "Bank"), today announced it has commenced an underwritten public offering of $55,000,000 of the Corporation's common stock. The Corporation also expects to grant the underwriter a 30-day option to purchase up to an additional 15% of the shares of its common stock sold in the offering. BofA Securities is serving as the sole book-runn ...