Washington Trust Bancorp Inc (WASH) Q1 2025 Earnings Call Highlights: Strong Deposit Growth and ...

In This Article:

  • Net Income: $12.2 million or $0.63 per share; adjusted net income of $11.8 million or $0.61 per share.

  • Net Interest Income: $36.4 million, up by $3.5 million or 11% quarter-over-quarter.

  • Net Interest Margin (NIM): 2.29%, up by 34 basis points.

  • Non-Interest Income: Includes a pre-tax net gain of $7 million from sale leaseback transactions.

  • Wealth Management Revenues: $9.9 million, down by $158,000 or 2%.

  • Mortgage Banking Revenues: $2.3 million, down by $544,000 or 19%.

  • Mortgage Pipeline: $95 million, up by $35 million or 59% from December.

  • Non-Interest Expenses: Adjusted to $35.8 million, up by $1.5 million or 4% excluding pension settlement charge.

  • Income Tax Expense: $3.5 million with an effective tax rate of 22.3%.

  • Total Loans: Down by $42 million or 1% from December 31.

  • In-Market Deposits: Up by $195 million or 4%.

  • Loan to Deposit Ratio: Decreased from 105.5% to 100.7%.

  • Total Equity: $522 million, up by $22 million from Q4.

  • Dividend: $0.56 per share.

  • Common Equity Tier 1 (CET1): Improved 56 basis points to 11.76%.

  • Total Risk-Based Capital: Improved by 66 basis points to 13.13%.

  • Non-Occurring Loans: 0.42% of total loans.

  • Past Due Loans: 0.20% of total loans.

  • Allowance for Loan Losses: $41.1 million or 81 basis points of total loans.

  • Provision for Credit Losses: $1.2 million.

  • Net Charge Offs: $2.3 million in the first quarter.

Release Date: April 21, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Washington Trust Bancorp Inc (NASDAQ:WASH) reported a net income of $12.2 million or $0.63 per share for the first quarter.

  • Net interest income increased by $3.5 million or 11% on a quarter basis, reflecting benefits from recent balance sheet repositioning.

  • In-market deposits reached an all-time high of $513 million, demonstrating successful deposit growth strategies.

  • The company's loan to deposit ratio improved from 105.5% to 100.7%, indicating better balance sheet management.

  • Capital ratios improved, with CET1 increasing by 56 basis points to 11.76% and total risk-based capital improving by 66% to 13.13%.

Negative Points

  • Total loans decreased by $42 million or 1% from December 31, with reductions in both residential and commercial loans.

  • Wealth management revenues declined by $158,000 or 2%, and mortgage banking revenues fell by $544,000 or 19%.

  • A pre-tax non-cash pension settlement charge of $6.4 million was recognized within non-interest expenses.

  • Net charge-offs amounted to $2.3 million in the first quarter, reflecting some credit quality challenges.

  • The dividend payout ratio remains high, which could constrain future growth opportunities if not managed carefully.