Washington Trust(US:WASH)2024-05-07 14:51Financial Performance - Net income for Q1 2024 was $10.9 million, a decrease of 15% from $12.8 million in Q1 2023[172] - Total revenues decreased by 3% to $48.8 million in Q1 2024 compared to $50.5 million in Q1 2023[172] - Diluted earnings per share for Q1 2024 were $0.64, compared to $0.74 in Q1 2023[172] - Net income for the Commercial Banking segment decreased by $4.660 million, or 38%, to $7.598 million for the three months ended March 31, 2024, compared to $12.258 million in the same period of 2023[214] Income and Expenses - Net interest income fell to $31.7 million in Q1 2024, down 15% from $37.2 million in Q1 2023[172] - Noninterest income increased by 29% to $17.2 million in Q1 2024, driven by a $2.1 million litigation settlement and higher mortgage banking revenues[173] - Noninterest expenses rose to $34.4 million in Q1 2024, an increase of 2% from $33.6 million in Q1 2023, primarily due to higher FDIC deposit insurance costs[173] - The provision for credit losses decreased to $700,000 in Q1 2024, down 13% from $800,000 in Q1 2023[172] Asset and Loan Growth - Total average loan balances increased by $527.6 million, or 10%, in Q1 2024 compared to Q1 2023, primarily due to growth in commercial real estate and residential real estate loans[186] - Total assets increased by $487.8 million, reaching $7.23 billion as of March 31, 2024, compared to $6.74 billion a year earlier[180] - Total loans increased by $37.5 million, or 1%, with the growth primarily in commercial loans[223] Interest Income and Margins - Total interest income increased by $16.5 million, or 24%, in Q1 2024 compared to Q1 2023, driven by higher yields on loans[191] - The net interest margin (NIM) decreased to 1.84% in Q1 2024 from 2.33% in Q1 2023, impacted by higher funding costs despite increased market interest rates[184] - Net interest income as a percentage of total revenues declined to 65% in Q1 2024 from 74% in Q1 2023[172] Deposits and Funding - Total deposits amounted to $5.3 billion at March 31, 2024, essentially unchanged from December 31, 2023, with in-market deposits down by $19.9 million[304] - Wholesale brokered time deposits increased by $19.7 million, or 3%, from December 31, 2023, as higher levels were utilized to fund balance sheet growth[305] - FHLB advances totaled $1.2 billion at March 31, 2024, up by $50 million, or 4%, from the end of 2023, indicating increased reliance on wholesale funding[309] Credit Quality - Total nonperforming assets decreased to $31.4 million, down from $45.3 million at December 31, 2023, reflecting a reduction in nonaccrual loans[270] - Nonperforming loans to total loans ratio improved to 0.54% as of March 31, 2024, compared to 0.79% at December 31, 2023[270] - The allowance for credit losses (ACL) on loans increased by $848 thousand, or 2%, to $41.9 million at March 31, 2024, with a reserve coverage ratio of 0.74%[294] Shareholder Equity and Dividends - Total shareholders' equity decreased by $5.8 million to $466.9 million at March 31, 2024, with net income of $10.9 million offset by $9.7 million in dividends[321] - The Corporation declared a quarterly dividend of 56 cents per share for the three months ended March 31, 2024, unchanged from the same period in 2023[322] Regulatory and Compliance - The total risk-based capital ratio is 11.62% at March 31, 2024, slightly up from 11.58% at December 31, 2023, indicating the Corporation is "well capitalized"[323] - There have been no material changes in the Corporation's internal controls over financial reporting during the quarter ended March 31, 2024[348] - Management believes that ongoing legal proceedings will not materially affect the Corporation's consolidated financial position or results of operations[349]