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Washington Trust Bancorp Inc (WASH) Q4 2024 Earnings Call Highlights: Navigating Losses and ...

In This Article:

  • Net Loss: $60.8 million or $3.46 per share in the fourth quarter.

  • Adjusted Net Income: $10.4 million or $0.59 per share, excluding repositioning asset losses.

  • Net Interest Income: $32.9 million, up by $674,000 or 2%.

  • Net Interest Margin: 195 basis points, up by 10 basis points.

  • Adjusted Non-Interest Income: $16 million, down by $229,000 or 1%.

  • Wealth Management Revenues: $10 million, up by $60,000 or 1%.

  • Mortgage Banking Revenues: $2.8 million, down by $18,000 or 1%.

  • Non-Interest Expenses: $34.3 million, down by $212,000 or 1%.

  • Salaries and Benefits Expense: Up by $525,000 or 2%.

  • Advertising and Promotion Expense: Decreased by $297,000.

  • Adjusted Income Tax Expense: $3.2 million with an effective tax rate of 23.7%.

  • Total Loans: Down by $377 million or 7%.

  • Residential Loans: Decreased by $403 million or 16%.

  • Total Commercial Loans: Increased by $29 million or 1%.

  • Market Deposits: Up by $26 million or 1%.

  • Broker Deposits: Down by $82 million.

  • FHB Borrowings: Down by $175 million.

  • Loan to Deposit Ratio: Decreased from 106.2% to 105.5%.

  • Non-Accruing Loans: 45 basis points at year-end.

  • Past Due Loans: 23 basis points at year-end.

  • Allowance for Loan Losses: $42 million, providing NPL coverage of 180%.

  • Provision for Credit Losses: $1 million in the fourth quarter.

  • Net Charge-Offs: $1.9 million in the fourth quarter and $2 million for the full year 2024.

Release Date: January 30, 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) successfully raised $70.5 million in capital, which is expected to favorably impact future revenues and provide additional capacity for growth and investment.

  • Net interest income increased by $674,000 or 2% to $32.9 million, reflecting a positive impact from balance sheet repositioning.

  • The company hired a new head of retail banking, Michelle Kyle, to enhance deposit growth strategies.

  • Non-accruing loans improved, decreasing from 56 basis points to 45 basis points by the end of the year.

  • The company plans to maintain its dividend, indicating confidence in its financial stability.

Negative Points

  • Washington Trust Bancorp Inc (NASDAQ:WASH) reported a net loss of $60.8 million or $3.46 per share in the fourth quarter due to balance sheet repositioning asset losses.

  • Total loans decreased by $377 million or 7%, with residential loans down by $403 million or 16%.

  • Mortgage banking revenues declined by $18,000 or 1%, reflecting challenges in the mortgage market.

  • Non-interest income was modestly down by $229,000 or 1%, indicating pressure on revenue streams.

  • The company experienced net charge-offs of $1.9 million in the fourth quarter, highlighting ongoing credit challenges.


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