Washington Trust(WASH) - 2024 Q1 - Quarterly Results

Financial Performance - Washington Trust reported Q1 2024 net income of $10.9 million, or $0.64 per diluted share, down from $12.9 million, or $0.76 per diluted share in Q4 2023[2] - Net income for Q1 2024 was $10,936 thousand, a decrease of 15.54% from $12,947 thousand in Q4 2023[29] - Earnings per common share for Q1 2024 was $0.64, down from $0.76 in the previous quarter, a decline of 15.79%[29] - Return on average equity decreased to 9.33% from 11.77% in the previous quarter, indicating a decline in profitability[31] - Return on average tangible equity (Non-GAAP) was 10.89% for the three months ended March 31, 2024, down from 13.93% in the previous quarter[61] Income and Revenue - Noninterest income increased by $3.9 million, or 29%, to $17.2 million in Q1 2024, driven by a $2.1 million litigation settlement[5] - Total interest and dividend income for Q1 2024 was $85,256 thousand, an increase of 1.56% compared to $83,946 thousand in Q4 2023[29] - Net interest income after provision for credit losses was $30,965 thousand, down from $31,454 thousand in the previous quarter, a decrease of 1.55%[29] - Total wealth management revenues increased to $9,338 thousand from $8,881 thousand in the previous quarter, driven by higher asset-based revenues[35] - Total mortgage banking revenues rose to $2,506 thousand from $1,554 thousand in the previous quarter, reflecting increased realized gains on loan sales[35] Loans and Assets - Total loans reached $5.7 billion, an increase of $38 million, or 1%, from the end of the previous quarter[11] - Net loans reached $5,643,327 thousand, a slight increase from $5,606,649 thousand in the previous quarter, reflecting a growth of 0.65%[27] - Total loans increased to $5,685,232 thousand from $5,647,706 thousand in the previous quarter, with commercial real estate loans rising to $2,158,518 thousand[39] - Total assets increased to $7,249,124 thousand as of March 31, 2024, up from $7,202,847 thousand at December 31, 2023, representing a growth of 0.65%[27] - Total assets increased to $7,231,835 thousand as of March 31, 2024, up from $7,191,575 thousand at December 31, 2023, reflecting a change of $40,260 thousand[59] Deposits and Funding - In-market deposits decreased by $20 million, or 0.4%, to $4.7 billion, with approximately 61% being retail and 39% commercial[12] - Total deposits remained stable at $5,347,893 thousand, a marginal decrease from $5,348,160 thousand in the previous quarter[27] - Total deposits for Washington Trust Bancorp as of March 31, 2024, were $5,347,893, a slight decrease from $5,348,160 on December 31, 2023[47] - Noninterest-bearing demand deposits decreased to $648,929 as of March 31, 2024, down from $693,746 at the end of 2023, representing a decline of approximately 6.3%[47] Credit Quality - Nonaccrual loans decreased to $30.7 million, or 0.54% of total loans, down from $44.6 million, or 0.79% at the end of Q4 2023[15] - The provision for credit losses was $700 thousand, down by $500 thousand from the previous quarter, with net charge-offs amounting to $52 thousand[18] - The allowance for credit losses on loans was $41,905 thousand, slightly increased from $41,057 thousand in the previous quarter[27] - Nonperforming assets to total assets improved to 0.43% as of March 31, 2024, down from 0.63% at the end of 2023, reflecting enhanced asset quality[52] - The total past due loans decreased to $10,039 as of March 31, 2024, compared to $11,345 at the end of 2023, showing improved loan performance[52] Expenses and Efficiency - Total noninterest expense rose to $34,363 thousand, compared to $32,587 thousand in the previous quarter, an increase of 5.43%[29] - Efficiency ratio improved slightly to 70.4% from 70.9% in the previous quarter, suggesting better cost management[31] Capital and Equity - Total shareholders' equity was $466.9 million, down by $5.8 million, or 1%, from December 31, 2023, with a total risk-based capital ratio of 11.62%[19] - Shareholders' equity increased to $471,096 thousand as of March 31, 2024, compared to $436,059 thousand at December 31, 2023, reflecting a change of $35,037 thousand[61] - The Tier 1 risk-based capital ratio slightly decreased to 10.84% from 10.86%, indicating a stable capital position[31] Interest Rates and Margins - The net interest margin decreased to 1.84% in Q1 2024, down from 1.88% in the previous quarter, reflecting continued margin pressure from higher funding costs[4] - Net interest margin declined to 1.84% from 1.88% in the previous quarter, reflecting a decrease in interest income[31] - The interest rate spread narrowed to 1.30% for the three months ended March 31, 2024, compared to 1.32% in the previous quarter[59]