Core Viewpoint - Washington Trust Bancorp, Inc. has announced a public offering of 1,911,764 shares of common stock at a price of $34.00 per share, aiming to raise approximately $61.75 million in net proceeds [1][2]. Group 1: Offering Details - The public offering is priced at $34.00 per share, with expected proceeds of approximately $61.75 million after deducting underwriting discounts and commissions [1]. - The underwriter has a 30-day option to purchase an additional 286,764 shares at the same public offering price [1]. - The offering is expected to close on December 16, 2024, subject to customary closing conditions [1]. Group 2: Use of Proceeds - The net proceeds from the offering will be used for general corporate purposes, including investments in the Bank and strategies for optimizing the Bank's balance sheet [2]. - Specific uses include the sale of lower-yielding loans, repayment of wholesale funding balances, and purchasing debt securities with current market yields [2]. Group 3: Company Background - Washington Trust Bancorp, Inc. is the publicly-owned holding company of The Washington Trust Company, with $7.1 billion in assets as of September 30, 2024 [8]. - Founded in 1800, it is recognized as the oldest community bank in the nation and the largest state-chartered bank headquartered in Rhode Island [8]. - The Bank offers a wide range of financial services, including commercial banking, mortgage banking, personal banking, and wealth management [8].

Core Viewpoint - Washington Trust Bancorp, Inc. has initiated a public offering of $55 million in common stock to support its growth and capital generation strategies [1][2]. Group 1: Offering Details - The offering includes a 30-day option for the underwriter to purchase an additional 15% of the shares sold [1]. - BofA Securities is the sole book-running manager for this offering [1]. Group 2: Use of Proceeds - The net proceeds from the offering will be utilized for general corporate purposes, including investments in the Bank and optimizing the Bank's balance sheet [2]. - Specific strategies mentioned include selling lower-yielding loans, repaying wholesale funding balances, and purchasing debt securities with current market yields [2]. Group 3: Company Background - Washington Trust Bancorp, Inc. is the holding company for The Washington Trust Company, with total assets of $7.1 billion as of September 30, 2024 [7]. - Established in 1800, it is recognized as the oldest community bank in the U.S. and the largest state-chartered bank in Rhode Island [7]. - The Bank offers a variety of financial services, including commercial banking, mortgage banking, personal banking, and wealth management across Rhode Island, Connecticut, and Massachusetts [7].

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Washington Trust Bancorp (WASH) - Washington Trust Bancorp currently holds a Momentum Style Score of A, indicating strong momentum potential [3] - The company has a Zacks Rank of 1 (Strong Buy), which historically outperforms the market when combined with a Style Score of A or B [4] Price Performance - Over the past week, WASH shares increased by 3.38%, while the Zacks Banks - Northeast industry declined by 1.49% [7] - In the last month, WASH shares rose by 15.99%, outperforming the industry’s 4.13% [7] - Over the past quarter, WASH shares have risen by 24.2%, and over the last year, they are up 50.88%, compared to the S&P 500's increases of 7.36% and 41.36%, respectively [8] Trading Volume - WASH has an average 20-day trading volume of 102,594 shares, which is a useful indicator of price momentum [9] Earnings Outlook - In the past two months, two earnings estimates for WASH have been revised upwards, increasing the consensus estimate from $2.38 to $2.49 [11] - For the next fiscal year, two estimates have also moved upwards with no downward revisions [11]

Core Insights - Washington Trust Bancorp, Inc. (NASDAQ: WASH) reported a positive market reaction with a +8.06% increase following its Q3 2024 earnings release, driven by conservative balance sheet management and a return to growth in non-interest-bearing deposits [1] Financial Performance - The company demonstrated a return to growth in non-interest-bearing deposits, indicating improved liquidity and customer confidence [1] - Both earnings per share (EPS) and revenue figures were positively impacted, contributing to the overall market optimism [1]

Core Insights - Washington Trust Bancorp reported a revenue of $48.53 million for the quarter ended September 2024, reflecting a decrease of 0.9% year-over-year, but a positive surprise of +2.57% compared to the Zacks Consensus Estimate of $47.32 million [1] - The earnings per share (EPS) for the quarter was $0.64, slightly down from $0.65 in the same quarter last year, with an EPS surprise of +14.29% against the consensus estimate of $0.56 [1] Financial Metrics - Net Interest Margin was reported at 1.9%, exceeding the average estimate of 1.8% from two analysts [2] - The Efficiency Ratio stood at 71.1%, better than the average estimate of 72.9% based on two analysts [2] - Total noninterest income reached $16.27 million, surpassing the average estimate of $15.74 million from two analysts [2] - Net Interest Income was reported at $32.26 million, compared to the average estimate of $31.60 million from two analysts [2] Stock Performance - Over the past month, shares of Washington Trust have returned +0.9%, while the Zacks S&P 500 composite has changed by +4.5% [2] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [2]

Core Viewpoint - Washington Trust Bancorp (WASH) reported quarterly earnings of $0.64 per share, exceeding the Zacks Consensus Estimate of $0.56 per share, but slightly down from $0.65 per share a year ago, indicating a 14.29% earnings surprise [1] Group 1: Earnings Performance - The company has surpassed consensus EPS estimates in all four of the last quarters [1] - For the quarter ended September 2024, Washington Trust posted revenues of $48.53 million, which is 2.57% above the Zacks Consensus Estimate and down from $48.98 million year-over-year [1] - The company has exceeded consensus revenue estimates three times over the last four quarters [1] Group 2: Stock Performance and Outlook - Washington Trust shares have increased by approximately 2.2% since the beginning of the year, while the S&P 500 has gained 23% [2] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [4] - The current consensus EPS estimate for the upcoming quarter is $0.55 on revenues of $47.5 million, and for the current fiscal year, it is $2.38 on revenues of $190.41 million [4] Group 3: Industry Context - The Banks - Northeast industry, to which Washington Trust belongs, is currently ranked in the top 23% of over 250 Zacks industries, suggesting a favorable outlook [5] - First Internet Bancorp (INBK), another company in the same industry, is expected to report quarterly earnings of $0.81 per share, reflecting a year-over-year increase of 107.7% [5]

Core Viewpoint - Washington Trust Bancorp, Inc. reported steady third quarter results for 2024, with net income of $11.0 million, reflecting the strength of its diversified business model and commitment to customer service [1] Financial Performance - Net income for Q3 2024 was $11.0 million, or $0.64 per diluted share, compared to $10.8 million, or $0.63 per diluted share in Q2 2024 [1] - Returns on average equity and average assets were 8.99% and 0.60%, respectively, down from 9.43% and 0.60% in the prior quarter [1] - Net interest margin increased to 1.85% from 1.83% in the preceding quarter [1][2] - Noninterest income totaled $16.3 million, down by 2% from Q2 2024, but up by 4% when excluding a one-time gain from the previous quarter [3] Wealth Management - Wealth management revenues increased by 3% to $10.0 million, with assets under administration (AUA) reaching over $7 billion, up by 4% from the end of Q2 2024 [1][3] Loan and Deposit Metrics - Total loans decreased by 2% to $5.5 billion from June 30, 2024, with commercial loans down by 3% and residential real estate loans down by 1% [1][5] - In-market deposits reached an all-time high of $4.8 billion, up by 3% from the previous quarter [1][5] Noninterest Expense and Tax - Noninterest expense rose by 2% to $34.5 million, driven by a 30% increase in advertising and promotion expenses [4] - Income tax expense decreased to $2.8 million, with an effective tax rate of 20.6%, down from 21.8% in the prior quarter [4] Capital and Equity - Total shareholders' equity increased by 7% to $502.2 million, with a total risk-based capital ratio of 12.21%, up from 11.81% [8][9] - The Board declared a quarterly dividend of $0.56 per share, consistent with the previous quarter [8] Asset Quality - Nonaccrual loans increased to $31.1 million, or 0.56% of total loans, while past due loans rose to $20.3 million, or 0.37% of total loans [6][7] - The allowance for credit losses on loans was $42.6 million, or 0.77% of total loans, reflecting a slight increase from the previous quarter [7][8]

Core Insights - Washington Trust Bancorp (WASH) is expected to report quarterly earnings of $0.56 per share, a decline of 13.9% year-over-year, with revenues forecasted at $47.32 million, down 3.4% from the previous year [1] Earnings Estimates - The consensus EPS estimate has remained unchanged over the last 30 days, indicating that analysts have collectively reassessed their initial projections during this period [2] Importance of Revisions - Revisions to earnings projections are crucial for predicting investor behavior regarding the stock, as empirical studies show a strong correlation between earnings estimate trends and short-term stock price performance [3] Key Metrics Projections - Analysts estimate an 'Efficiency Ratio' of 72.9%, up from 70.2% in the same quarter last year [5] - 'Total noninterest income' is projected to reach $15.74 million, compared to $15.23 million reported in the same quarter last year [5] - 'Net Interest Income' is expected to be $31.60 million, down from $33.75 million a year ago [6] Stock Performance - Over the past month, Washington Trust shares have returned +2.1%, while the Zacks S&P 500 composite has changed by +3.5% [6] - Based on its Zacks Rank 3 (Hold), WASH is likely to perform in line with the overall market in the upcoming period [6]

Group 1 - Washington Trust Bancorp, Inc. will release its third quarter 2024 earnings on October 21, 2024, after market closes [1] - A conference call with the Corporation's executives is scheduled for October 22, 2024, at 8:30 a.m. ET [1] - The Corporation has $7.2 billion in assets as of June 30, 2024, making it one of the premier financial services companies in the Northeast [2] Group 2 - Washington Trust is recognized as the oldest community bank in the nation and the largest state-chartered bank headquartered in Rhode Island [2] - The Bank offers a wide range of services including commercial banking, mortgage banking, personal banking, and wealth management [2] - Washington Trust is committed to improving the financial lives of the people, businesses, and organizations in New England [2]

Core Points - Washington Trust announced the promotion of Scott McCaughey to Senior Vice President and Team Leader within the Commercial Banking division [2] - McCaughey has 30 years of banking experience and will oversee the Bank's Commercial & Industrial Lending and Business Banking teams [2] - His responsibilities include implementing strategic initiatives, enhancing client relationships, and expanding the Bank's C&I and Business Banking portfolios [2] Company Overview - Washington Trust is the oldest community bank in the nation, founded in 1800, and is the largest state-chartered bank headquartered in Rhode Island [3] - The Bank offers a wide range of services including commercial banking, mortgage banking, personal banking, and wealth management [3] - Washington Trust is a publicly-owned holding company trading on NASDAQ under the ticker symbol WASH [3]