Washington Trust Reports Third Quarter 2024 Earnings

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]