Washington Trust(WASH) - 2024 Q4 - Annual Results

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].