Washington Trust Bancorp Successfully Upsizes Stock Offering, Generates Significant Funds
On December 12, 2024, Washington Trust Bancorp, Inc. (NASDAQ: WASH), the parent organization of The Washington Trust Company based in Westerly, announced the successful pricing of its upscaled public stock offering. The company is set to offer a total of 1,911,764 shares of its common stock, priced at $34.00 each. This strategic move is expected to yield the corporation approximately $61.75 million in proceeds after accounting for underwriting discounts and commissions, although operating expenses will still need to be deducted.
In an effort to bolster its financial standing and facilitate future growth, Washington Trust Bancorp has also granted underwriters a 30-day option to purchase an additional 286,764 shares under the same price conditions. The closing of this stock offering is slated for December 16, 2024, contingent upon standard closing conditions being fulfilled.
The corporation intends to utilize the net proceeds from this offering for general corporate purposes designed to underpin its ongoing organic growth and capital generation strategies. These plans include potential investments in the Bank, as well as initiatives to optimize the Bank's balance sheet. Specifically, Washington Trust is looking to offload lower-yielding loans and available-for-sale debt securities, repay wholesale funding balances, and acquire debt securities that align with current market yields.
BofA Securities has been appointed as the sole book-running manager for this offering, highlighting the confidence in Washington Trust’s solid market position and growth potential.
The stock offering is being executed under a shelf registration statement on Form S-3, which was filed with the Securities and Exchange Commission (SEC) on September 8, 2023, and subsequently declared effective on September 29, 2023. This means that investors can expect a preliminary prospectus supplement as the offering approaches its closing date. The corporation clearly states in its announcement that prospective investors should carefully review the preliminary prospectus and other related documents before making any investment decisions.
As the oldest community bank in the United States and Rhode Island's premier financial institution, founded in 1800, Washington Trust has carved a prominent niche in the Northeast. With assets totaling $7.1 billion as of September 30, 2024, the company showcases its commitment to serving the community and contributing to economic vitality in the regions it serves. The offerings from Washington Trust include a wide array of services, ranging from commercial banking to wealth management, all aimed at enhancing the financial well-being of individuals, businesses, and organizations in New England. Washington Trust also proudly maintains its status as an equal housing lender and is a member of the FDIC.
Despite this encouraging announcement, potential investors should remain cognizant of the inherent risks involved in stock offerings and overall market conditions. The corporation has made it clear that the future is unpredictable and that results may differ from forward-looking statements, especially in the complex world of finance. Investors are encouraged to consult the SEC filings, especially the risk factors outlined within, for a more nuanced understanding of the investment landscape and Washington Trust's projections.
In a market marked by rapid change and evolving dynamics, Washington Trust Bancorp's recent stock offering is a strategic step toward promoting growth and stability. As it gears up for closing, stakeholders and potential investors alike will be keeping a close watch on how these developments play out.
In an effort to bolster its financial standing and facilitate future growth, Washington Trust Bancorp has also granted underwriters a 30-day option to purchase an additional 286,764 shares under the same price conditions. The closing of this stock offering is slated for December 16, 2024, contingent upon standard closing conditions being fulfilled.
The corporation intends to utilize the net proceeds from this offering for general corporate purposes designed to underpin its ongoing organic growth and capital generation strategies. These plans include potential investments in the Bank, as well as initiatives to optimize the Bank's balance sheet. Specifically, Washington Trust is looking to offload lower-yielding loans and available-for-sale debt securities, repay wholesale funding balances, and acquire debt securities that align with current market yields.
BofA Securities has been appointed as the sole book-running manager for this offering, highlighting the confidence in Washington Trust’s solid market position and growth potential.
The stock offering is being executed under a shelf registration statement on Form S-3, which was filed with the Securities and Exchange Commission (SEC) on September 8, 2023, and subsequently declared effective on September 29, 2023. This means that investors can expect a preliminary prospectus supplement as the offering approaches its closing date. The corporation clearly states in its announcement that prospective investors should carefully review the preliminary prospectus and other related documents before making any investment decisions.
As the oldest community bank in the United States and Rhode Island's premier financial institution, founded in 1800, Washington Trust has carved a prominent niche in the Northeast. With assets totaling $7.1 billion as of September 30, 2024, the company showcases its commitment to serving the community and contributing to economic vitality in the regions it serves. The offerings from Washington Trust include a wide array of services, ranging from commercial banking to wealth management, all aimed at enhancing the financial well-being of individuals, businesses, and organizations in New England. Washington Trust also proudly maintains its status as an equal housing lender and is a member of the FDIC.
Despite this encouraging announcement, potential investors should remain cognizant of the inherent risks involved in stock offerings and overall market conditions. The corporation has made it clear that the future is unpredictable and that results may differ from forward-looking statements, especially in the complex world of finance. Investors are encouraged to consult the SEC filings, especially the risk factors outlined within, for a more nuanced understanding of the investment landscape and Washington Trust's projections.
In a market marked by rapid change and evolving dynamics, Washington Trust Bancorp's recent stock offering is a strategic step toward promoting growth and stability. As it gears up for closing, stakeholders and potential investors alike will be keeping a close watch on how these developments play out.
Topics Financial Services & Investing）
【About Using Articles】
You can freely use the title and article content by linking to the page where the article is posted.
※ Images cannot be used.
【About Links】
Links are free to use.