Washington Trust Reports Fourth Quarter and Full-Year 2024 Results

Core Viewpoint - Washington Trust Bancorp reported a significant net loss of $60.8 million for the fourth quarter of 2024, primarily due to balance sheet repositioning transactions, although adjusted net income showed a slight decrease compared to the previous quarter [1][5]. Financial Performance - The net loss for the fourth quarter of 2024 was $60.8 million, translating to a loss of $3.46 per diluted share, while adjusted net income was $10.4 million or $0.59 per diluted share, down from $11.0 million or $0.64 per diluted share in the third quarter [1][5]. - For the full year 2024, the Corporation reported a net loss of $28.1 million, compared to a net income of $48.2 million in 2023 [5]. Balance Sheet Repositioning - The Corporation executed balance sheet repositioning transactions, selling available for sale debt securities with an amortized cost of $409 million, resulting in a net pre-tax realized loss of $31.0 million [3]. - Additionally, the Bank committed to sell residential mortgage loans with an amortized cost of $345 million, leading to a net pre-tax loss of $62.9 million [4]. Income and Expenses - Net interest income for the fourth quarter was $32.9 million, a 2% increase from the previous quarter, with a net interest margin of 1.95%, up 10 basis points [6][8]. - Noninterest income recorded a loss of $77.9 million in the fourth quarter, significantly impacted by the pre-tax loss of $93.9 million from the balance sheet repositioning transactions [7][8]. Asset Quality - Nonaccrual loans decreased to $23.3 million, or 0.45% of total loans, down from $31.1 million or 0.56% in the previous quarter [16]. - Past due loans also decreased to $12.0 million, or 0.23% of total loans, compared to $20.3 million or 0.37% in the previous quarter [17]. Capital and Dividends - Total shareholders' equity was $499.7 million at the end of 2024, down 0.5% from the previous quarter, with a total risk-based capital ratio of 12.47% [20][22]. - The Board declared a quarterly dividend of $0.56 per share for the quarter ended December 31, 2024 [21]. Wealth Management and Loans - Wealth management revenues for the fourth quarter increased by 1% to $10.0 million, with assets under administration totaling $7.1 billion, up 0.4% from the previous quarter [8][36]. - Total loans amounted to $5.1 billion at the end of 2024, down 7% from the previous quarter, largely due to the reclassification of residential mortgage loans [12][23].