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Washington Trust Bancorp Reports Losses in Fourth Quarter and Full-Year 2024

Washington Trust Bancorp, Inc. has released its financial results for the fourth quarter and the full year of 2024, revealing significant losses. The company, which operates under the Nasdaq ticker WASH, reported a net loss of $60.8 million during the fourth quarter. This translates to a $3.46 loss per diluted share. When excluding specific balance sheet repositioning sales, the adjusted net income for the same period is reported at $10.4 million, or $0.59 per diluted share, falling short compared to the $11.0 million, or $0.64 per diluted share, achieved in the third quarter of 2024.

In December 2024, Washington Trust completed a public offering totaling 2,198,528 shares at a price of $34.00 per share, generating approximately $70.5 million in net proceeds. This capital was partly utilized for balance sheet repositioning strategies aimed at stimulating organic growth. Notably, the bank engaged in transactions that involved selling down $409 million in available-for-sale debt securities, realizing a $31.0 million pre-tax loss. Furthermore, it committed to a sale of residential mortgage loans for $345 million, which will reflect a $62.9 million pre-tax loss once finalized on January 24, 2025.

Edward O. Handy III, Chairman and CEO, acknowledged the strategic moves saying they are fundamental for maintaining revenue growth potential and reinforcing the bank's financial standing going forward. While the fourth quarter’s sales lead to losses, the outlook appears positive as they expect these adjustments will enable Washington Trust to provide improved value for its shareholders, alongside enhancing community services.

For the entirety of 2024, Washington Trust reported a net loss of $28.1 million, constituting a $1.63 loss per diluted share. This stands in stark contrast to 2023's results which featured a net income of $48.2 million, or $2.82 per diluted share. The losses for 2024 were predominantly driven by the previously mentioned repositioning actions, alongside several non-recurring income impacts from settlements in litigation and a tax benefit from a legislative change.

Key highlights from the fourth quarter and year-end 2024 disclosures include:

• - The net interest margin improved to 1.95% in Q4, up from 1.85% in Q3; however, it slipped to 1.87% for the full year.
• - A provision for credit losses increased to $1.0 million for Q4, totaling $2.4 million for the year, showing a modest decline from prior year's provisions.
• - Wealth management revenue exhibited a small sequential increase of 1% in Q4, reaching total assets under management of approximately $7.1 billion.
• - Mortgage banking revenues rose substantially, with a yearly total of $11.0 million, marking a 65% increase compared to 2023.
• - Total loans dipped to $5.1 billion, down nearly 9% over the year, primarily due to the reclassification of residential mortgages intended for sale.

Looking ahead, Washington Trust’s management remains optimistic about its repositioning strategy and the anticipated impact on future revenue generation. Handy emphasized this approach as a way to solidify the organization’s foundation, ensuring it can more effectively cater to its stakeholders.

The company will be hosting a conference call on January 30, 2025, at 8:30 AM ET to further discuss its financial results and outlook for 2025.

Washington Trust Bancorp, Inc. operates as the parent company for The Washington Trust Company, with a legacy dating back to 1800, making it the oldest community bank in the U.S. The firm provides a comprehensive array of financial services throughout Rhode Island, Connecticut, and Massachusetts. Investors can gain further insights via the company’s investor relations page on their website.