Washington Trust(WASH) - 2024 Q2 - Quarterly Results

Financial Performance - Second quarter 2024 net income was $10.8 million, or $0.63 per diluted share, compared to $10.9 million, or $0.64 per diluted share in the first quarter of 2024[2]. - Net income for the three months ended June 30, 2024, was $10,815, a decrease of 1.1% compared to $10,936 in the previous quarter[28]. - The net income for the six months ended June 30, 2024, was $21,751, a decrease of $2,317 from $24,068 in the previous year[59]. - Return on average equity was 9.43% for the three months ended June 30, 2024, compared to 9.33% in the previous quarter[30]. - Return on average tangible equity (Non-GAAP) was 11.04% for the three months ended June 30, 2024, compared to 11.32% in the same period last year[59]. Interest Income and Margin - The net interest margin decreased to 1.83% in the second quarter from 1.84% in the previous quarter, with net interest income at $31.6 million, down by $80 thousand, or 0.3%[4][5]. - Net interest income for the three months ended June 30, 2024, was $31,585, a slight decrease of 0.3% from $31,665 in the previous quarter[28]. - The net interest margin for the three months ended June 30, 2024, was 1.83%, down from 1.84% in the previous quarter[30]. - The average yield on taxable debt securities was 2.47%, down from 2.49% in the previous quarter[55]. - The interest rate spread decreased to 1.29%, down from 1.69% in the previous year, reflecting a decline of 0.40%[57]. Loans and Credit Quality - Total loans amounted to $5.6 billion, down by $56 million, or 1%, from the previous quarter, with commercial loans decreasing by 1% and residential real estate loans also decreasing by 1%[10][14]. - Total loans for the three months ended June 30, 2024, were $5,665,594 thousand, with net interest income (FTE) of $31,812 thousand[55]. - Nonaccrual loans were $30.5 million, or 0.54% of total loans, remaining stable compared to the previous quarter[13]. - The provision for credit losses was $500 thousand, down by $200 thousand from the previous quarter, with net charge-offs amounting to $27 thousand[16]. - Total past due loans increased to $11,880 thousand as of June 30, 2024, compared to $11,345 thousand at December 31, 2023, reflecting an increase of approximately 4.7%[48]. Deposits and Assets - Total deposits decreased to $5.0 billion, down from $5.3 billion at the end of the previous quarter, with in-market deposits at $4.6 billion, down by 1%[10][11]. - Total deposits decreased to $4,976,126 as of June 30, 2024, down 6.9% from $5,347,893 on March 31, 2024[26]. - Total assets as of June 30, 2024, were $7,184,360, a decrease of 0.9% from $7,249,124 on March 31, 2024[26]. - Total assets increased by $387,500, reaching $7,229,656 as of June 30, 2024, compared to $6,842,156 in the previous year[57]. - Total liabilities as of June 30, 2024, were $6,713,403, a decrease of 1.0% from $6,782,204 on March 31, 2024[26]. Equity and Capital Ratios - Total shareholders' equity increased to $471.0 million, up by $4.0 million, or 1%, from the previous quarter, with a total risk-based capital ratio of 11.81%[17][18]. - The Tier 1 risk-based capital ratio improved to 11.01% as of June 30, 2024, from 10.84% in the previous quarter[30]. - The allowance for credit losses on loans to nonaccrual loans ratio improved to 139.04% as of June 30, 2024, compared to 136.45% in the previous quarter[48]. Noninterest Income and Expenses - Noninterest income for the three months ended June 30, 2024, was $16,660, a decrease of 2.9% from $17,163 in the previous quarter[28]. - Total noninterest expense for the three months ended June 30, 2024, was $33,910, a decrease of 1.4% from $34,363 in the previous quarter[28]. - Cash dividends declared per share remained at $0.56 for the three months ended June 30, 2024[28]. Wealth Management and Mortgage Banking - Wealth management revenues increased by 4% to $9.7 million, while mortgage banking revenues rose by 10% to $2.8 million, reflecting higher realized gains[7]. - Total wealth management revenues reached $9,678,000 for the three months ended June 30, 2024, up from $9,338,000 in the previous quarter, representing a 3.6% increase[33]. - Total mortgage banking revenues increased to $2,761,000 for the three months ended June 30, 2024, compared to $2,506,000 in the previous quarter, marking a 10.1% increase[33].