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Washington Trust Bancorp Inc

Washington Trust Reports First Quarter 2025 Results

WESTERLY, R.I. , April 21, 2025 /PRNewswire/ -- Washington Trust Bancorp, Inc. (the "Corporation") (Nasdaq: WASH), parent company of The Washington Trust Company (the "Bank"), today reported first quarter 2025 net income of $12.2 million, or $0.63 per diluted share.

In the first quarter of 2025, sales leaseback transactions were completed for five branch locations and a pre-tax net gain on the sale of the bank-owned properties totaling $7.0 million was recognized within noninterest income.  Additionally, in connection with the termination of the Corporation's qualified pension plan, a pre-tax non-cash pension plan settlement charge of $6.4 million was recognized within noninterest expenses.  Excluding the impact of these items, adjusted net income (non-GAAP) totaled $11.8 million, or $0.61 per diluted share, in the first quarter of 2025.  In the fourth quarter of 2024, a net loss of $60.8 million, or a loss of $3.46 per diluted share, was recognized.  Excluding the impact of the previously disclosed balance sheet repositioning sale transactions in the preceding quarter, adjusted net income (non-GAAP) was $10.4 million, or $0.59 per diluted share for the fourth quarter of 2024.

"Washington Trust's first quarter results reflected our effective focus on our balance sheet, resulting in expansion of net interest margin and in-market deposit growth," stated Edward O. Handy III, Washington Trust Chairman and Chief Executive Officer.  "In our 225th year, we remain steadfast in our commitment to our customers and the communities we serve."

Other selected financial highlights for the first quarter 2025 include:

  • The net interest margin was 2.29% in the first quarter, up by 34 basis points from the 1.95% reported in the preceding quarter, reflecting benefits from the balance sheet repositioning transactions.
  • A provision for credit losses of $1.2 million was recognized for the first quarter, up by $200 thousand from the fourth quarter of 2024.
  • Wealth management revenues in the first quarter decreased by 2% from the preceding quarter. End of period assets under administration ("AUA") totaled $6.8 billion, down by 4% from December 31, 2024.
  • Mortgage banking revenues in the first quarter decreased by 19% from the preceding quarter, reflecting a lower volume of loans sold to the secondary market.
  • Total loans amounted to $5.1 billion, down by 1% from December 31, 2024.
  • In-market deposits (total deposits less wholesale brokered deposits) amounted to $5.0 billion, up by 4% from December 31, 2024.

Net Interest Income
Net interest income was $36.4 million for the first quarter of 2025, up by $3.5 million, or 11%, from the fourth quarter of 2024.  The net interest margin was 2.29% for the first quarter, an increase of 34 basis points from the preceding quarter.  This improvement reflected benefits from the balance sheet repositioning transactions executed in the latter portion of the preceding quarter, which included the sale of lower-yielding securities and loans, reinvestment into higher-yielding securities, and pay-down of higher-cost wholesale funding.  Linked quarter changes included:

  • Average interest-earning assets decreased by $277 million, largely reflecting a decrease in loans, partially offset by an increase in average balance of deposits at correspondent banks. The yield on interest-earning assets for the first quarter was 4.98%, up by 15 basis points from the preceding quarter.
  • Average interest-bearing liabilities decreased by $219 million, as in-market deposits increased by $167 million while wholesale funding balances decreased by $386 million. The cost of interest-bearing liabilities for the first quarter of 2025 was 3.19%, down by 22 basis points from the preceding quarter.

Noninterest Income
Noninterest income was $22.6 million for the first quarter of 2025, compared to a loss of $77.9 million in the fourth quarter of 2024.  Adjusted noninterest income (non-GAAP) was $15.6 million for the first quarter, down by $394 thousand, or 2%, from the preceding quarter.  Our two largest sources of noninterest income are discussed below:

  • Wealth management revenues amounted to $9.9 million in the first quarter of 2025, down by $158 thousand, or 2%, from the preceding quarter, reflecting a decrease in asset-based revenues. The end of period AUA balance at March 31, 2025 amounted to $6.8 billion, down by $259 million, or 4%, from December 31, 2024.
  • Mortgage banking revenues totaled $2.3 million for the first quarter of 2025, down by $544 thousand, or 19%, from the preceding quarter. Loans sold amounted to $75.5 million in the first quarter of 2025, down by $37.6 million, or 33%, from the fourth quarter of 2024.

Noninterest Expense
Noninterest expense totaled $42.2 million for the first quarter of 2025, up by $7.9 million, or 23%, from the fourth quarter of 2024.  Adjusted noninterest expense (non-GAAP) was $35.8 million for the first quarter, up by $1.5 million, or 4%, from the preceding quarter.  Salaries and employee benefits expense, our largest component of noninterest expense, amounted to $22.4 million, up by $547 thousand, or 3%, from the preceding quarter, which includes higher payroll taxes associated with the start of a new calendar year.  The remaining increase in noninterest expense included higher net occupancy costs and modest changes across a variety of expense categories.

Income Tax
For the first quarter of 2025, income tax expense of $3.5 million was recognized, reflecting an effective tax rate of 22.3%.  Based on current federal and applicable state income tax statutes, the Corporation currently expects its full-year 2025 effective tax rate to be approximately 22.4%.

Investment Securities
The securities portfolio totaled $918 million at March 31, 2025, up by $1 million, or 0.1%, from December 31, 2024.  An increase in the fair value of available for sale securities was essentially offset by routine pay-downs on mortgage-backed debt securities in the quarter.  The securities portfolio represented 14% of total assets at March 31, 2025, compared to 13% of total assets at December 31, 2024.

Loans
Total loans amounted to $5.1 billion at March 31, 2025, down by $42 million, or 1%, from the end of the preceding quarter.  These changes included:

  • Commercial loans decreased by $28 million, or 1%, from December 31, 2024.
  • Residential real estate loans decreased by $13 million, or 1%, from December 31, 2024.
  • Consumer loans decreased by $1 million, or 0.3%, from December 31, 2024.

Deposits and Borrowings
Total deposits amounted to $5.0 billion at March 31, 2025, down by $75 million, or 1%, from the end of the preceding quarter.

In-market deposits, which exclude wholesale brokered deposits, amounted to $5.0 billion at March 31, 2025, up by $195 million, or 4%, from December 31, 2024, largely due to increases in high-rate savings account balances.

Wholesale brokered deposits amounted to $27 million and were down by $270 million, or 91%, from December 31, 2024.  FHLB advances totaled $850 million at March 31, 2025, down by $275 million, or 24%, from December 31, 2024.  These decreases reflected less need for wholesale funding and the use of net proceeds from the aforementioned balance sheet repositioning transactions.

As of March 31, 2025, contingent liquidity amounted to $1.8 billion and consisted of available cash, unencumbered securities, and unused collateralized borrowing capacity.

Asset Quality
Nonaccrual loans were $21.6 million, or 0.42% of total loans, at March 31, 2025, compared to $23.3 million, or 0.45% of total loans, at December 31, 2024.  The composition of nonaccrual loans at March 31, 2025 was 40% commercial and 60% residential and consumer.

Past due loans were $10.2 million, or 0.20% of total loans, at March 31, 2025, compared to $12.0 million, or 0.23% of total loans, at December 31, 2024.  The composition of past due loans at March 31, 2025 was 11% commercial and 89% residential and consumer.

The allowance for credit losses ("ACL") on loans amounted to $41.1 million, or 0.81% of total loans, at March 31, 2025, compared to $42.0 million, or 0.82% of total loans, at December 31, 2024.  The ACL on unfunded commitments, included in other liabilities on the Consolidated Balance Sheets, was $1.2 million at March 31, 2025, compared to $1.4 million at December 31, 2024.

The provision for credit losses totaled $1.2 million in the first quarter of 2025, up by $200 thousand from the preceding quarter, including loss allocations on individually analyzed nonaccrual commercial loans and reflecting our estimate of forecasted economic conditions.  Net charge-offs amounted to $2.3 million in the first quarter of 2025, compared to $1.9 million in the preceding quarter.  The charge-offs recognized in both the first quarter of 2025 and fourth quarter of 2024 were concentrated in the commercial real estate office portfolio segment.

Capital and Dividends
Total shareholders' equity was $521.7 million at March 31, 2025, up by $22.0 million, or 4%, from December 31, 2024.  Net income of $12.2 million and improvement of $20.0 million in the accumulated other comprehensive loss ("AOCL") component of shareholders' equity were partially offset by quarterly dividend declarations of $11.0 million.  The improvement in AOCL included an increase in fair value of available for sale debt securities, as well as the effects of the remeasurement of the qualified pension plan upon settlement and the reclassification of the after-tax pension plan settlement charge to noninterest expenses.

The Board of Directors declared a quarterly dividend of 56 cents per share for the quarter ended March 31, 2025.  The dividend was paid on April 11, 2025 to shareholders of record on April 1, 2025.

Capital levels at March 31, 2025 exceeded the regulatory minimum levels to be considered well capitalized, with a total risk-based capital ratio of 13.13% at March 31, 2025, compared to 12.47% at December 31, 2024.  Book value per share was $27.06 at March 31, 2025, compared to $25.93 at December 31, 2024.

Conference Call
 Washington Trust will host a conference call to discuss its first quarter results, business highlights, and outlook on Monday, April 21, 2025 at 10:00 a.m. (Eastern Time).  Individuals may dial in to the call at 1-833-470-1428 and enter Access Code 572620.  An audio replay of the call will be available, shortly after the conclusion of the call, by dialing 1-866-813-9403 and entering the Replay Access Code 256173.  The audio replay will be available through May 5, 2025.  Also, a webcast of the call will be posted in the Investor Relations section of Washington Trust's website, https://ir.washtrust.com, and will be available through June 30, 2025.

Background
 Washington Trust Bancorp, Inc. is the parent of The Washington Trust Company.  Founded in 1800, Washington Trust is the oldest community bank in the nation, the largest state-chartered bank headquartered in Rhode Island and one of the Northeast's premier financial services companies.  Washington Trust offers a full range of financial services, including commercial banking, mortgage banking, personal banking, and wealth management and trust services through its offices located in Rhode Island, Connecticut, and Massachusetts.  The Corporation's common stock trades on NASDAQ under the symbol WASH.  Investor information is available on the Corporation's website at https://ir.washtrust.com.

Forward-Looking Statements
This press release contains statements that are "forward-looking statements."  We may also make forward-looking statements in other documents we file with the U.S. Securities and Exchange Commission ("SEC"), in our annual reports to shareholders, in press releases and other written materials, and in oral statements made by our officers, directors, or employees.  You can identify forward-looking statements by the use of the words "believe," "expect," "anticipate," "intend," "estimate," "assume," "outlook," "will," "should," and other expressions that predict or indicate future events and trends and which do not relate to historical matters.  You should not rely on forward-looking statements, because they involve known and unknown risks, uncertainties, and other factors, some of which are beyond our control.  These risks, uncertainties, and other factors may cause our actual results, performance, or achievements to be materially different from the anticipated future results, performance, or achievements expressed or implied by the forward-looking statements.

Some of the factors that might cause these differences include the following:

  • changes in general business and economic conditions (including the impact of recently imposed tariffs by the U.S. Administration and foreign governments, inflation and concerns about liquidity) on a national basis and in the local markets in which we operate;
  • interest rate changes or volatility, as well as changes in the balance and mix of loans and deposits;
  • changes in customer behavior due to political, business and economic conditions;
  • changes in loan demand and collectability;
  • the possibility that future credit losses are higher than currently expected due to changes in economic assumptions or adverse economic developments;
  • ongoing volatility in national and international financial markets;
  • reductions in the market value or outflows of wealth management AUA;
  • decreases in the value of securities and other assets;
  • increases in defaults and charge-off rates;
  • changes in the size and nature of our competition;
  • changes in, and evolving interpretations of, existing and future laws, rules and regulations;
  • changes in accounting principles, policies and guidelines;
  • operational risks including, but not limited to, changes in information technology, cybersecurity incidents, fraud, natural disasters, war, terrorism, civil unrest and future pandemics;
  • regulatory, litigation and reputational risks; and
  • changes in the assumptions used in making such forward-looking statements.

In addition, the factors described under "Risk Factors" in Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, as updated by our Quarterly Reports on Form 10-Q and other filings submitted to the SEC, may result in these differences. You should carefully review all of these factors, and you should be aware that there may be other factors that could cause these differences. These forward-looking statements were based on information, plans, and estimates at the date of this report, and we assume no obligation to update any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes.

Supplemental Information - Explanation of Non-GAAP Financial Measures
In addition to results presented in accordance with generally accepted accounting principles ("GAAP"), this press release contains certain non-GAAP financial measures.  Washington Trust's management believes that the supplemental non-GAAP information, such as adjusted noninterest income, adjusted noninterest expense, adjusted income before income taxes, adjusted income tax expense, adjusted effective tax rate, adjusted net income, adjusted net income available to common shareholders, adjusted diluted earnings per common share, adjusted return on average assets, adjusted return on average equity, and adjusted efficiency ratio, as well as measurements and ratios based on tangible equity and tangible assets, is utilized by regulators and market analysts to evaluate a company's financial condition and therefore, such information is useful to investors.  These disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures, which may be presented by other companies.  Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names.

Washington Trust Bancorp, Inc. and Subsidiaries

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited; Dollars in thousands)








Mar 31,
2025

Dec 31,
2024

Sep 30,
2024

Jun 30,
2024

Mar 31,
2024

Assets:






Cash and due from banks

$33,394

$21,534

$33,694

$28,211

$52,544

Interest-earning deposits with correspondent banks

82,804

88,368

173,277

75,666

49,592

Short-term investments

4,041

3,987

3,772

3,654

3,452

Mortgage loans held for sale, at fair value

21,953

21,708

20,864

26,116

25,462

Mortgage loans held for sale, at lower of cost or market

—

281,706

—

—

—

Premises and equipment held for sale, lower of cost or market

—

4,788

—

—

—

Available for sale debt securities, at fair value

917,545

916,305

973,266

951,828

970,060

Federal Home Loan Bank stock, at cost

38,899

49,817

57,439

66,166

55,512

Loans:






Total loans

5,096,210

5,137,838

5,514,870

5,629,102

5,685,232

Less: allowance for credit losses on loans

41,056

41,960

42,630

42,378

41,905

Net loans

5,055,154

5,095,878

5,472,240

5,586,724

5,643,327

Premises and equipment, net

26,068

26,873

32,145

31,866

31,914

Operating lease right-of-use assets

36,048

26,943

27,612

28,387

29,216

Investment in bank-owned life insurance

107,546

106,777

105,998

105,228

104,475

Goodwill

63,909

63,909

63,909

63,909

63,909

Identifiable intangible assets, net

2,682

2,885

3,089

3,295

3,503

Other assets

195,972

219,169

174,266

213,310

216,158

Total assets

$6,586,015

$6,930,647

$7,141,571

$7,184,360

$7,249,124

Liabilities:






Deposits:






Noninterest-bearing deposits

$625,590

$661,776

$665,706

$645,661

$648,929

Interest-bearing deposits

4,414,991

4,454,024

4,506,184

4,330,465

4,698,964

Total deposits

5,040,581

5,115,800

5,171,890

4,976,126

5,347,893

Federal Home Loan Bank advances

850,000

1,125,000

1,300,000

1,550,000

1,240,000

Junior subordinated debentures

22,681

22,681

22,681

22,681

22,681

Operating lease liabilities

38,716

29,578

30,237

31,012

31,837

Other liabilities

112,357

137,860

114,534

133,584

139,793

Total liabilities

6,064,335

6,430,919

6,639,342

6,713,403

6,782,204

Shareholders' Equity:






Common stock

1,223

1,223

1,085

1,085

1,085

Paid-in capital

197,570

196,947

126,698

125,898

126,785

Retained earnings

435,233

434,014

505,654

504,350

503,175

Accumulated other comprehensive loss

(99,179)

(119,171)

(117,158)

(146,326)

(148,913)

Treasury stock, at cost

(13,167)

(13,285)

(14,050)

(14,050)

(15,212)

Total shareholders' equity

521,680

499,728

502,229

470,957

466,920

Total liabilities and shareholders' equity

$6,586,015

$6,930,647

$7,141,571

$7,184,360

$7,249,124

 

Washington Trust Bancorp, Inc. and Subsidiaries

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited; Dollars and shares in thousands, except per share amounts)



For the Three Months Ended



Mar 31,
2025

Dec 31,
2024

Sep 30,
2024

Jun 30,
2024

Mar 31,
2024

Interest income:






Interest and fees on loans

$66,656

$71,432

$75,989

$76,240

$75,636

Interest on mortgage loans held for sale

958

762

366

392

255

Taxable interest on debt securities

8,827

7,015

6,795

6,944

7,096

Nontaxable interest on debt securities

7

8

—

—

—

Dividends on Federal Home Loan Bank stock

1,022

1,312

1,262

1,124

1,073

Other interest income

1,993

1,310

3,174

1,297

1,196

Total interest and dividend income

79,463

81,839

87,586

85,997

85,256

Interest expense:






Deposits

31,748

34,135

37,203

36,713

38,047

Federal Home Loan Bank advances

10,946

14,388

17,717

17,296

15,138

Junior subordinated debentures

347

380

404

403

406

Total interest expense

43,041

48,903

55,324

54,412

53,591

Net interest income

36,422

32,936

32,262

31,585

31,665

Provision for credit losses

1,200

1,000

200

500

700

Net interest income after provision for credit losses

35,222

31,936

32,062

31,085

30,965

Noninterest income (loss):






Wealth management revenues

9,891

10,049

9,989

9,678

9,338

Mortgage banking revenues

2,304

2,848

2,866

2,761

2,506

Card interchange fees

1,509

1,255

1,321

1,275

1,145

Service charges on deposit accounts

744

794

784

769

685

Loan related derivative income

101

8

126

49

284

Income from bank-owned life insurance

769

779

770

753

739

Realized losses on securities, net

—

(31,047)

—

—

—

Losses on sale of portfolio loans, net

—

(62,888)

—

—

—

Gain on sale of bank-owned properties, net

6,994

—

—

988

—

Other income

331

310

416

387

2,466

Total noninterest income (loss)

22,643

(77,892)

16,272

16,660

17,163

Noninterest expense:






Salaries and employee benefits

22,422

21,875

21,350

21,260

21,775

Outsourced services

4,346

4,197

4,185

4,096

3,780

Net occupancy

2,741

2,428

2,399

2,397

2,561

Equipment

891

936

924

958

1,020

Legal, audit, and professional fees

750

845

836

741

706

FDIC deposit insurance costs

1,262

1,266

1,402

1,404

1,441

Advertising and promotion

410

560

857

661

548

Amortization of intangibles

204

204

206

208

208

Pension plan settlement charge

6,436

—

—

—

—

Other expenses

2,734

1,981

2,345

2,185

2,324

Total noninterest expense

42,196

34,292

34,504

33,910

34,363

Income (loss) before income taxes

15,669

(80,248)

13,830

13,835

13,765

Income tax expense (benefit)

3,490

(19,457)

2,849

3,020

2,829

Net income (loss)


$12,179

($60,791)

$10,981

$10,815

$10,936








Net income (loss) available to common shareholders

$12,179

($60,776)

$10,973

$10,807

$10,924

Weighted average common shares outstanding - basic

19,276

17,452

17,058

17,052

17,033

Weighted average common shares outstanding - diluted

19,370

17,565

17,140

17,110

17,074

Per share information:

Basic earnings per common share

$0.63

($3.48)

$0.64

$0.63

$0.64


Diluted earnings per common share

$0.63

($3.46)

$0.64

$0.63

$0.64


Cash dividends declared

$0.56

$0.56

$0.56

$0.56

$0.56

 

 

Washington Trust Bancorp, Inc. and Subsidiaries

SELECTED FINANCIAL HIGHLIGHTS

(Unaudited; Dollars and shares in thousands, except per share amounts)




Mar 31,
2025

Dec 31,
2024

Sep 30,
2024

Jun 30,
2024

Mar 31,
2024

Share and Equity Related Data:






Book value per share

$27.06

$25.93

$29.44

$27.61

$27.41

Tangible book value per share (non-GAAP) (1)

$23.61

$22.46

$25.51

$23.67

$23.45

Market value per share

$30.86

$31.35

$32.21

$27.41

$26.88

Shares issued at end of period

19,562

19,562

17,363

17,363

17,363

Shares outstanding at end of period

19,276

19,274

17,058

17,058

17,033







Capital Ratios (2) :






Tier 1 risk-based capital

12.23 %

11.64 %

11.39 %

11.01 %

10.84 %

Total risk-based capital

13.13 %

12.47 %

12.21 %

11.81 %

11.62 %

Tier 1 leverage ratio

8.45 %

8.13 %

7.85 %

7.82 %

7.81 %

Common equity tier 1

11.76 %

11.20 %

10.95 %

10.59 %

10.42 %







Balance Sheet Ratios:






Equity to assets

7.92 %

7.21 %

7.03 %

6.56 %

6.44 %

Tangible equity to tangible assets (non-GAAP) (1)

6.98 %

6.31 %

6.15 %

5.67 %

5.56 %

Loans to deposits (3)

100.7 %

105.5 %

106.2 %

112.8 %

106.0 %



For the Three Months Ended


Mar 31,
2025

Dec 31,
2024

Sep 30,
2024

Jun 30,
2024

Mar 31,
2024

Performance Ratios (4) :






Net interest margin (5)

2.29 %

1.95 %

1.85 %

1.83 %

1.84 %

Return on average assets (6)

0.73 %

(3.45 %)

0.60 %

0.60 %

0.61 %

Adjusted return on average assets (non-GAAP) (1)

0.71 %

0.59 %

0.60 %

0.56 %

0.52 %

Return on average tangible assets (non-GAAP) (1)

0.71 %

0.60 %

0.61 %

0.57 %

0.53 %

Return on average equity (7)

9.63 %

(48.25 %)

8.99 %

9.43 %

9.33 %

Adjusted return on average equity (non-GAAP) (1)

9.30 %

8.29 %

8.99 %

8.79 %

7.99 %

Return on average tangible equity (non-GAAP) (1)

10.69 %

9.57 %

10.43 %

10.29 %

9.32 %

Efficiency ratio (8)

71.4 %

(76.3 %)

71.1 %

70.3 %

70.4 %

Adjusted efficiency ratio (non-GAAP) (1)

68.7 %

70.0 %

71.1 %

71.8 %

73.5 %



(1)

See the section labeled "Supplemental Information - Calculation of Non-GAAP Financial Measures" at the end of this document.

(2)

Estimated for March 31, 2025 and actuals for prior periods.

(3)

Period-end balances of net loans and mortgage loans held for sale as a percentage of total deposits.

(4)

Annualized based on the actual number of days in the period.

(5)

Fully taxable equivalent (FTE) net interest income as a percentage of average-earnings assets.

(6)

Net income divided by average assets.

(7)

Net income available for common shareholders divided by average equity.

(8)

Total noninterest expense as percentage of total revenues (net interest income and noninterest income).

 

Washington Trust Bancorp, Inc. and Subsidiaries

SELECTED FINANCIAL HIGHLIGHTS

(Unaudited; Dollars in thousands)




For the Three Months Ended


Mar 31,
2025

Dec 31,
2024

Sep 30,
2024

Jun 30,
2024

Mar 31,
2024

Wealth Management Results






Wealth Management Revenues:






Asset-based revenues

$9,769

$9,910

$9,770

$9,239

$9,089

Transaction-based revenues

122

139

219

439

249

Total wealth management revenues

$9,891

$10,049

$9,989

$9,678

$9,338







Assets Under Administration (AUA):






Balance at beginning of period

$7,077,802

$7,052,408

$6,803,491

$6,858,322

$6,588,406

Net investment (depreciation) appreciation & income

(148,748)

57,706

372,027

108,529

364,244

Net client asset outflows

(110,664)

(32,312)

(123,110)

(163,360)

(94,328)

Balance at end of period

$6,818,390

$7,077,802

$7,052,408

$6,803,491

$6,858,322







Percentage of AUA that are managed assets

91 %

91 %

91 %

91 %

91 %







Mortgage Banking Results






Mortgage Banking Revenues:






Realized gains on loan sales, net (1)

$1,575

$2,493

$2,492

$2,205

$1,586

Changes in fair value, net (2)

133

(317)

(28)

20

324

Loan servicing fee income, net (3)

596

672

402

536

596

Total mortgage banking revenues

$2,304

$2,848

$2,866

$2,761

$2,506







Residential Mortgage Loan Originations:






Originations for retention in portfolio (4)

$27,662

$15,155

$26,317

$26,520

$24,474

Originations for sale to secondary market (5)

75,519

114,137

115,117

110,728

78,098

Total mortgage loan originations

$103,181

$129,292

$141,434

$137,248

$102,572







Percentage of originations for sale to total mortgage loan originations

73 %

88 %

81 %

81 %

76 %







Residential Mortgage Loans Sold:






Sold with servicing rights retained

$16,819

$62,410

$17,881

$24,570

$24,057

Sold with servicing rights released (5)

58,680

50,697

102,457

85,482

48,587

Total mortgage loans sold

$75,499

$113,107

$120,338

$110,052

$72,644



(1)

Includes gains on loan sales, commission income on loans originated for others, servicing right gains, and gains (losses) on forward loan commitments.

(2)

Represents fair value changes on mortgage loans held for sale and forward loan commitments.

(3)

Represents loan servicing fee income, net of servicing right amortization and valuation adjustments.

(4)

Includes the full commitment amount of homeowner construction loans.

(5)

Includes brokered loans (loans originated for others).

 

Washington Trust Bancorp, Inc. and Subsidiaries

END OF PERIOD LOAN COMPOSITION

(Unaudited; Dollars in thousands)




Mar 31,
2025

Dec 31,
2024

Sep 30,
2024

Jun 30,
2024

Mar 31,
2024

Loans:






Commercial real estate (1)

$2,134,107

$2,154,504

$2,102,091

$2,191,996

$2,158,518

Commercial & industrial

535,030

542,474

566,279

558,075

613,376

Total commercial

2,669,137

2,696,978

2,668,370

2,750,071

2,771,894







Residential real estate (2)

2,113,307

2,126,171

2,529,397

2,558,533

2,585,524







Home equity

296,563

297,119

299,379

302,027

309,302

Other

17,203

17,570

17,724

18,471

18,512

Total consumer

313,766

314,689

317,103

320,498

327,814

Total loans

$5,096,210

$5,137,838

$5,514,870

$5,629,102

$5,685,232



(1)

Commercial real estate loans consist of commercial mortgages and construction and development loans.  Commercial mortgages are loans secured by income producing property.

(2)

Residential real estate loans consist of mortgage and homeowner construction loans secured by one- to four-family residential properties.

 

March 31, 2025


December 31, 2024


Balance

% of Total


Balance

% of Total

Commercial Real Estate Loans by Property Location:






Connecticut

$840,620

39 %


$839,079

39 %

Massachusetts

633,123

30


663,026

31

Rhode Island

439,382

21


434,244

20

Subtotal

1,913,125

90


1,936,349

90

All other states

220,982

10


218,155

10

Total commercial real estate loans

$2,134,107

100 %


$2,154,504

100 %







Residential Real Estate Loans by Property Location:






Massachusetts

$1,508,640

71 %


$1,530,847

72 %

Rhode Island

455,372

22


443,237

21

Connecticut

126,336

6


128,933

6

Subtotal

2,090,348

99


2,103,017

99

All other states

22,959

1


23,154

1

Total residential real estate loans

$2,113,307

100 %


$2,126,171

100 %

 

Washington Trust Bancorp, Inc. and Subsidiaries

END OF PERIOD LOAN COMPOSITION

(Unaudited; Dollars in thousands)








March 31, 2025


December 31, 2024


Balance

% of Total


Balance

% of Total

Commercial Real Estate Portfolio Segmentation:






Multi-family

$580,191

27 %


$567,243

26 %

Retail

422,039

20


433,146

20

Industrial and warehouse

361,910

17


358,425

17

Office

275,787

13


289,853

13

Hospitality

221,921

10


213,585

10

Healthcare Facility

191,546

9


205,858

10

Mixed-use

22,281

1


29,023

1

Other

58,432

3


57,371

3

Total commercial real estate loans

$2,134,107

100 %


$2,154,504

100 %







Commercial & Industrial Portfolio Segmentation:






Healthcare and social assistance

$120,963

23 %


$126,547

23 %

Real estate rental and leasing

61,208

11


63,992

12

Transportation and warehousing

53,849

10


55,784

10

Retail trade

52,928

10


41,132

8

Educational services

49,432

9


47,092

9

Manufacturing

22,741

4


32,140

6

Information

22,088

4


22,265

4

Finance and insurance

19,735

4


26,557

5

Arts, entertainment, and recreation

19,600

4


19,861

4

Accommodation and food services

14,958

3


12,368

2

Professional, scientific, and technical services

11,043

2


10,845

2

Public administration

2,152

—


2,186

—

Other

84,333

16


81,705

15

Total commercial & industrial loans

$535,030

100 %


$542,474

100 %







 

Weighted Average


Asset Quality


Balance
(2) (3)

Average

 Loan

Size (4)

Loan to
Value

Debt

 Service
Coverage


Pass

Special
Mention

Classified


Nonaccrual
(included in
Classified)

Non-Owner Occupied Commercial Real
Estate Office (inclusive of Construction):











Class A

$102,953

$9,436

58 %

1.76x


$96,714

$—

$6,239


$—

Class B

76,848

4,072

57 %

1.53x


69,243

—

7,605


7,605

Class C

14,887

1,861

54 %

1.57x


12,670

2,217

—


—

Medical Office

53,334

7,619

69 %

1.39x


53,334

—

—


—

Lab Space

27,765

23,473

91 %

0.81x


—

6,319

21,446


—

Total office at March 31, 2025 (1)

$275,787

$6,305

65 %

1.48x


$231,961

$8,536

$35,290


$7,605

Total office at December 31, 2024

$289,853

$6,566

65 %

1.51x


$244,223

$8,353

$37,277


$10,053

Total office linked quarter change

($14,066)

($261)

— %

(0.03x)


($12,262)

$183

($1,987)


($2,448)



(1)

Approximately 67% of the total commercial real estate office balance of $276 million is secured by income producing properties located in suburban areas.  Additionally, approximately 50% of the total commercial real estate office balance is scheduled to mature before March 31, 2027.

(2)

Balance of commercial real estate office consists of 47 loans as of March 31, 2025.

(3)

Does not include $20.5 million of unfunded commitments as of March 31, 2025.

(4)

Total commitment (outstanding loan balance plus unfunded commitments) divided by number of loans.

 

Washington Trust Bancorp, Inc. and Subsidiaries

END OF PERIOD DEPOSIT COMPOSITION & CONTINGENT LIQUIDITY

(Unaudited; Dollars in thousands)








Mar 31,
2025

Dec 31,
2024

Sep 30,
2024

Jun 30,
2024

Mar 31,
2024

Deposits:






Noninterest-bearing demand deposits

$625,590

$661,776

$665,706

$645,661

$648,929

Interest-bearing demand deposits (in-market)

654,599

592,904

596,319

532,316

536,923

NOW accounts

686,666

692,812

685,531

722,797

735,617

Money market accounts

1,202,703

1,154,745

1,146,426

1,086,088

1,111,510

Savings accounts

630,413

523,915

490,285

485,208

484,678

Time deposits (in-market) (1)

1,213,382

1,192,110

1,207,626

1,164,839

1,156,516

In-market deposits

5,013,353

4,818,262

4,791,893

4,636,909

4,674,173

Wholesale brokered time deposits

27,228

297,538

379,997

339,217

673,720

Total deposits

$5,040,581

$5,115,800

$5,171,890

$4,976,126

$5,347,893



(1)

As of March 31, 2025, in-market deposits were approximately 60% retail and 40% commercial and the average size was approximately $38 thousand.

 

March 31, 2025


December 31, 2024


Balance

% of Total
Deposits


Balance

% of Total
Deposits

Uninsured Deposits:






Uninsured deposits (1)

$1,378,312

27 %


$1,363,689

27 %

Less: affiliate deposits (2)

96,644

2


94,740

2

Uninsured deposits, excluding affiliate deposits

1,281,668

25


1,268,949

25

Less: fully-collateralized preferred deposits (3)

195,771

3


197,638

4

Uninsured deposits, after exclusions

$1,085,897

22 %


$1,071,311

21 %



(1)

Determined in accordance with regulatory reporting requirements, which includes affiliate deposits and fully-collateralized preferred deposits.

(2)

Uninsured deposit balances of Washington Trust Bancorp, Inc. and its subsidiaries that are eliminated in consolidation.

(3)

Uninsured deposits of states and political subdivisions, which are secured or collateralized as required by state law.

 

Mar 31,
2025

Dec 31,
2024

Contingent Liquidity:



Federal Home Loan Bank of Boston

$1,047,209

$752,951

Federal Reserve Bank of Boston

113,746

70,286

Available cash liquidity (1)

43,350

36,647

Unencumbered securities

548,483

597,771

Total

$1,752,788

$1,457,655




Percentage of total contingent liquidity to uninsured deposits

127.2 %

106.9 %

Percentage of total contingent liquidity to uninsured deposits, after exclusions

161.4 %

136.1 %



(1)

Available cash liquidity excludes amounts restricted for collateral purposes and designated for operating needs.

 

Washington Trust Bancorp, Inc. and Subsidiaries

CREDIT & ASSET QUALITY DATA

(Unaudited; Dollars in thousands)




Mar 31,
2025

Dec 31,
2024

Sep 30,
2024

Jun 30,
2024

Mar 31,
2024

Asset Quality Ratios:






Nonperforming assets to total assets

0.33 %

0.34 %

0.44 %

0.43 %

0.43 %

Nonaccrual loans to total loans

0.42 %

0.45 %

0.56 %

0.54 %

0.54 %

Total past due loans to total loans

0.20 %

0.23 %

0.37 %

0.21 %

0.18 %

Allowance for credit losses on loans to nonaccrual loans

189.85 %

180.03 %

136.89 %

139.04 %

136.45 %

Allowance for credit losses on loans to total loans

0.81 %

0.82 %

0.77 %

0.75 %

0.74 %







Nonperforming Assets:






Commercial real estate

$7,605

$10,053

$18,259

$18,390

$18,729

Commercial & industrial

1,140

515

616

642

668

Total commercial

8,745

10,568

18,875

19,032

19,397

Residential real estate

11,102

10,767

10,517

9,744

9,722

Home equity

1,779

1,972

1,750

1,703

1,591

Other consumer

—

—

—

—

—

Total consumer

1,779

1,972

1,750

1,703

1,591

Total nonaccrual loans

21,626

23,307

31,142

30,479

30,710

Other real estate owned

—

—

—

683

683

Total nonperforming assets

$21,626

$23,307

$31,142

$31,162

$31,393







Past Due Loans (30 days or more past due):






Commercial real estate

$—

$—

$10,476

$—

$—

Commercial & industrial

1,146

900

3

2

270

Total commercial

1,146

900

10,479

2

270

Residential real estate

6,439

7,741

6,947

8,534

6,858

Home equity

2,578

2,947

2,800

3,324

2,879

Other consumer

32

394

75

20

32

Total consumer

2,610

3,341

2,875

3,344

2,911

Total past due loans

$10,195

$11,982

$20,301

$11,880

$10,039







Accruing loans 90 days or more past due

$—

$—

$—

$—

$—

Nonaccrual loans included in past due loans

$7,534

$6,447

$18,119

$8,409

$5,111

 

Washington Trust Bancorp, Inc. and Subsidiaries

CREDIT & ASSET QUALITY DATA

(Unaudited; Dollars in thousands)


For the Three Months Ended


Mar 31,
2025

Dec 31,
2024

Sep 30,
2024

Jun 30,
2024

Mar 31,
2024

Nonaccrual Loan Activity:






Balance at beginning of period

$23,307

$31,142

$30,479

$30,710

$44,618

Additions to nonaccrual status

2,142

5,417

1,880

556

431

Loans returned to accruing status

(4)

(9)

(268)

(369)

(13,764)

Loans charged-off

(2,522)

(2,231)

(59)

(53)

(70)

Loans transferred to other real estate owned

—

—

—

—

—

Payments, payoffs, and other changes

(1,297)

(11,012)

(890)

(365)

(505)

Balance at end of period

$21,626

$23,307

$31,142

$30,479

$30,710







Allowance for Credit Losses on Loans:






Balance at beginning of period

$41,960

$42,630

$42,378

$41,905

$41,057

Provision for credit losses on loans (1)

1,400

1,200

300

500

900

Charge-offs

(2,522)

(2,231)

(59)

(53)

(70)

Recoveries

218

361

11

26

18

Balance at end of period

$41,056

$41,960

$42,630

$42,378

$41,905







Allowance for Credit Losses on Unfunded Commitments:





Balance at beginning of period

$1,440

$1,640

$1,740

$1,740

$1,940

Provision for credit losses on unfunded commitments (1)

(200)

(200)

(100)

—

(200)

Balance at end of period (2)

$1,240

$1,440

$1,640

$1,740

$1,740



(1)

Included in provision for credit losses in the Consolidated Statements of Income.

(2)

Included in other liabilities in the Consolidated Balance Sheets.

 

For the Three Months Ended


Mar 31,
2025

Dec 31,
2024

Sep 30,
2024

Jun 30,
2024

Mar 31,
2024

Net Loan Charge-Offs (Recoveries):






Commercial real estate

$2,250

$1,961

$—

$—

$—

Commercial & industrial

3

181

2

4

(1)

Total commercial

2,253

2,142

2

4

(1)

Residential real estate

—

(160)

—

—

—

Home equity

(1)

(189)

(1)

(6)

(1)

Other consumer

52

77

47

29

54

Total consumer

51

(112)

46

23

53

Total

$2,304

$1,870

$48

$27

$52







Net charge-offs to average loans - annualized

0.18 %

0.14 %

— %

— %

— %

The following table presents daily average balance, interest, and yield/rate information, as well as net interest margin on an FTE basis.  Tax-exempt income is converted to an FTE basis using the statutory federal income tax rate adjusted for applicable state income taxes net of the related federal tax benefit.  Unrealized gains (losses) on available for sale securities, changes in fair value on mortgage loans held for sale, and basis adjustments associated with fair value hedges are excluded from the average balance and yield calculations.  Nonaccrual loans, as well as interest recognized on these loans, are included in amounts presented for loans.

Washington Trust Bancorp, Inc. and Subsidiaries

CONSOLIDATED AVERAGE BALANCE SHEETS (FTE Basis)

(Unaudited; Dollars in thousands)

For the Three Months Ended

March 31, 2025


December 31, 2024


Change


Average
Balance

Interest

Yield/

Rate


Average
Balance

Interest

Yield/

Rate


Average
Balance

Interest

Yield/

Rate


Assets:












Cash, federal funds sold, and short-term
     investments

$185,724

$1,993

4.35 %


$110,327

$1,310

4.72 %


$75,397

$683

(0.37 %)

Mortgage loans held for sale

105,253

958

3.69


75,731

762

4.00


29,522

196

(0.31)

Taxable debt securities

1,042,687

8,827

3.43


1,087,076

7,016

2.57


(44,389)

1,811

0.86

Nontaxable debt securities

650

8

4.99


650

8

4.90


—

—

0.09

Total securities

1,043,337

8,835

3.43


1,087,726

7,024

2.57


(44,389)

1,811

0.86

FHLB stock

43,491

1,022

9.53


52,508

1,312

9.94


(9,017)

(290)

(0.41)

Commercial real estate

2,138,301

30,354

5.76


2,130,040

31,878

5.95


8,261

(1,524)

(0.19)

Commercial & industrial

538,083

7,874

5.93


548,871

8,528

6.18


(10,788)

(654)

(0.25)

Total commercial

2,676,384

38,228

5.79


2,678,911

40,406

6.00


(2,527)

(2,178)

(0.21)

Residential real estate

2,120,452

23,354

4.47


2,446,905

25,681

4.18


(326,453)

(2,327)

0.29

Home equity

296,735

5,061

6.92


295,879

5,366

7.21


856

(305)

(0.29)

Other

17,349

217

5.07


17,534

217

4.92


(185)

—

0.15

Total consumer

314,084

5,278

6.82


313,413

5,583

7.09


671

(305)

(0.27)

Total loans

5,110,920

66,860

5.31


5,439,229

71,670

5.24


(328,309)

(4,810)

0.07

Total interest-earning assets

6,488,725

79,668

4.98


6,765,521

82,078

4.83


(276,796)

(2,410)

0.15

Noninterest-earning assets

276,332




246,318




30,014



Total assets

$6,765,057




$7,011,839




($246,782)



Liabilities and Shareholders' Equity:












Interest-bearing demand deposits (in-
     market)

$628,490

$5,876

3.79 %


$602,737

$6,098

4.02 %


$25,753

($222)

(0.23 %)

NOW accounts

679,138

343

0.20


680,763

404

0.24


(1,625)

(61)

(0.04)

Money market accounts

1,232,042

10,028

3.30


1,160,962

10,139

3.47


71,080

(111)

(0.17)

Savings accounts

564,002

1,851

1.33


502,910

1,164

0.92


61,092

687

0.41

Time deposits (in-market)

1,204,779

11,304

3.81


1,193,733

11,840

3.95


11,046

(536)

(0.14)

Interest-bearing in-market deposits

4,308,451

29,402

2.77


4,141,105

29,645

2.85


167,346

(243)

(0.08)

Wholesale brokered time deposits

188,386

2,346

5.05


345,668

4,490

5.17


(157,282)

(2,144)

(0.12)

Total interest-bearing deposits

4,496,837

31,748

2.86


4,486,773

34,135

3.03


10,064

(2,387)

(0.17)

FHLB advances

959,889

10,946

4.62


1,188,804

14,388

4.81


(228,915)

(3,442)

(0.19)

Junior subordinated debentures

22,681

347

6.20


22,681

380

6.67


—

(33)

(0.47)

Total interest-bearing liabilities

5,479,407

43,041

3.19


5,698,258

48,903

3.41


(218,851)

(5,862)

(0.22)

Noninterest-bearing demand deposits

620,849




668,138




(47,289)



Other liabilities

151,753




144,344




7,409



Shareholders' equity

513,048




501,099




11,949



Total liabilities and shareholders' equity

$6,765,057




$7,011,839




($246,782)



Net interest income (FTE)


$36,627




$33,175




$3,452


Interest rate spread



1.79 %




1.42 %




0.37 %

Net interest margin



2.29 %




1.95 %




0.34 %

 

Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency:


For the Three Months Ended

Mar 31, 2025

Dec 31, 2024

Change

Commercial loans

$206

$234

($28)

Nontaxable debt securities

1

1

—

Total

$207

$235

($28)

 

Washington Trust Bancorp, Inc. and Subsidiaries

SUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures

(Unaudited; Dollars in thousands, except per share amounts)



The following table presents adjusted noninterest income, adjusted noninterest expense, adjusted income before income taxes, adjusted income tax expense, adjusted effective tax rate, adjusted net income, and adjusted net income available to common shareholders:


For the Three Months Ended


Mar 31,
2025

Dec 31,
2024

Sep 30,
2024

Jun 30,
2024

Mar 31,
2024

Adjusted Noninterest Income:






Noninterest income (loss), as reported

$22,643

($77,892)

$16,272

$16,660

$17,163

Less adjustments:






Realized losses on securities, net

—

(31,047)

—

—

—

Losses on sale of portfolio loans, net

—

(62,888)

—

—

—

Gain on sale of bank-owned properties, net

6,994

—

—

988

—

Litigation settlement income

—

—

—

—

2,100

Total adjustments, pre-tax

6,994

(93,935)

—

988

2,100

Adjusted noninterest income (non-GAAP)

$15,649

$16,043

$16,272

$15,672

$15,063







Adjusted Noninterest Expense:






Noninterest expense, as reported

$42,196

$34,292

$34,504

$33,910

$34,363

Less adjustments:






Pension plan settlement charge

6,436

—

—

—

—

Total adjustments, pre-tax

6,436

—

—

—

—

Adjusted noninterest expense (non-GAAP)

$35,760

$34,292

$34,504

$33,910

$34,363







Adjusted Income Before Income Taxes:






Income (loss) before income taxes

$15,669

($80,248)

$13,830

$13,835

$13,765

Less: total adjustments, pre-tax

558

(93,935)

—

988

2,100

Adjusted income before income taxes (non-GAAP)

$15,111

$13,687

$13,830

$12,847

$11,665







Adjusted Income Tax Expense:






Income tax expense (benefit), as reported

$3,490

($19,457)

$2,849

$3,020

$2,829

Less: tax on total adjustments

141

(22,699)

—

249

530

Adjusted income tax expense (non-GAAP)

$3,349

$3,242

$2,849

$2,771

$2,299







Adjusted Effective Tax Rate:






Effective tax rate (1)

22.3 %

24.2 %

20.6 %

21.8 %

20.6 %

Less: impact of total adjustments

0.1

0.5

—

0.2

0.9

Adjusted effective tax rate (non-GAAP) (2)

22.2 %

23.7 %

20.6 %

21.6 %

19.7 %







Adjusted Net Income:






Net income (loss), as reported

$12,179

($60,791)

$10,981

$10,815

$10,936

Less: total adjustments, after-tax

417

(71,236)

—

739

1,570

Adjusted net income (non-GAAP)

$11,762

$10,445

$10,981

$10,076

$9,366







Adjusted Net Income Available to Common Shareholders:





Net income (loss) available to common shareholders, as reported

$12,179

($60,776)

$10,973

$10,807

$10,924

Less: total adjustments available to common shareholders, after-tax

417

(71,221)

—

738

1,568

Adjusted net income available to common shareholders (non-GAAP)

$11,762

$10,445

$10,973

$10,069

$9,356



(1)

Calculated as income tax expense (benefit) divided by income (loss) before income taxes.

(2)

Calculated as income tax expense (benefit), adjusted for the tax impact of the adjustments as outlined in the table above, divided by income (loss) before income taxes, adjusted for the pre-tax impact of the adjustments as outlined in the table above.

 

Washington Trust Bancorp, Inc. and Subsidiaries

SUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures (continued)

(Unaudited; Dollars in thousands, except per share amounts)



The following table presents adjusted diluted earnings per common share and adjusted efficiency ratio:


For the Three Months Ended


Mar 31,
2025

Dec 31,
2024

Sep 30,
2024

Jun 30,
2024

Mar 31,
2024

Adjusted Diluted Earnings per Common Share:





Diluted earnings (loss) per common share, as reported (1)

$0.63

($3.46)

$0.64

$0.63

$0.64

Less: impact of total adjustments

0.02

(4.05)

—

0.04

0.09

Adjusted diluted earnings per common share (non-GAAP) (2)

$0.61

$0.59

$0.64

$0.59

$0.55







Adjusted Efficiency Ratio:






Efficiency ratio, as reported (3)

71.4 %

(76.3 %)

71.1 %

70.3 %

70.4 %

Less: impact of total adjustments

2.7

(146.3)

—

(1.5)

(3.1)

Adjusted efficiency ratio (non-GAAP) (4)

68.7 %

70.0 %

71.1 %

71.8 %

73.5 %



(1)

Net income (loss) available to common shareholders divided by weighted average diluted common and potential shares outstanding.

(2)

Net income (loss) available to common shareholders, adjusted for the after-tax impact of adjustments as outlined in the table above, divided by weighted average diluted common and potential shares outstanding.

(3)

Total noninterest expense as percentage of total revenues (net interest income and noninterest income).

(4)

Total noninterest expense as percentage of total revenues (net interest income and noninterest income), each adjusted for the pre-tax impact of adjustments as outlined in the table above.

 

The following table presents adjusted return on average assets and return on average tangible assets:


For the Three Months Ended


Mar 31,
2025

Dec 31,
2024

Sep 30,
2024

Jun 30,
2024

Mar 31,
2024

Adjusted Return on Average Assets:






Net income (loss), as reported

$12,179

($60,791)

$10,981

$10,815

$10,936

Less: total adjustments, after-tax

417

(71,236)

—

739

1,570

Adjusted net income (non-GAAP)

11,762

10,445

10,981

10,076

9,366







Total average assets, as reported

6,765,057

7,011,839

7,254,566

7,227,478

7,231,835







Return on average assets (1)

0.73 %

(3.45 %)

0.60 %

0.60 %

0.61 %

Adjusted return on average assets (non-GAAP) (2)

0.71 %

0.59 %

0.60 %

0.56 %

0.52 %







Return on Average Tangible Assets:






Adjusted net income (non-GAAP)

$11,762

$10,445

$10,981

$10,076

$9,366







Total average assets, as reported

6,765,057

7,011,839

7,254,566

7,227,478

7,231,835

Less average balances of:






Goodwill

63,909

63,909

63,909

63,909

63,909

Identifiable intangible assets, net

2,781

2,984

3,189

3,397

3,604

Total average tangible assets

6,698,367

6,944,946

7,187,468

7,160,172

7,164,322







Return on average assets

0.73 %

(3.45 %)

0.60 %

0.60 %

0.61 %

Return on average tangible assets (non-GAAP) (3)

0.71 %

0.60 %

0.61 %

0.57 %

0.53 %



(1)

Net income (income) loss divided by total average assets.

(2)

Net income (loss), adjusted for the after-tax impact of adjustments as outlined in the table above, divided by total average assets.

(3)

Net income (loss), adjusted for the after-tax impact of adjustments as outlined in the table above, divided by total average tangible assets.

 

Washington Trust Bancorp, Inc. and Subsidiaries

SUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures (continued)

(Unaudited; Dollars in thousands, except per share amounts)



The following table presents adjusted return on average equity and return on average tangible equity:


For the Three Months Ended


Mar 31,
2025

Dec 31,
2024

Sep 30,
2024

Jun 30,
2024

Mar 31,
2024

Adjusted Return on Average Equity:






Net income (loss) available to common shareholders, as reported

$12,179

($60,776)

$10,973

$10,807

$10,924

Less: total adjustments, after-tax

417

(71,221)

—

738

1,568

Adjusted net income available to common shareholders (non-GAAP)

11,762

10,445

10,973

10,069

9,356







Total average equity, as reported

513,048

501,099

485,654

460,959

471,096







Return on average equity (1)

9.63 %

(48.25 %)

8.99 %

9.43 %

9.33 %

Adjusted return on average equity (non-GAAP) (2)

9.30 %

8.29 %

8.99 %

8.79 %

7.99 %







Return on Average Tangible Equity:






Adjusted net income available to common shareholders (non-GAAP)

$11,762

$10,445

$10,973

$10,069

$9,356







Total average equity, as reported

513,048

501,099

485,654

460,959

471,096

Less average balances of:






Goodwill

63,909

63,909

63,909

63,909

63,909

Identifiable intangible assets, net

2,781

2,984

3,189

3,397

3,604

Total average tangible equity (non-GAAP)

446,358

434,206

418,556

393,653

403,583







Return on average equity

9.63 %

(48.25 %)

8.99 %

9.43 %

9.33 %

Return on average tangible equity (non-GAAP) (3)

10.69 %

9.57 %

10.43 %

10.29 %

9.32 %



(1)

Net income (loss) available to common shareholders divided by total average equity.

(2)

Net income (loss) available to common shareholders, adjusted for the after-tax impact of adjustments as outlined in the table above, divided by total average equity.

(3)

Net income (loss) available to common shareholders, adjusted for the after-tax impact of adjustments as outlined in the table above, divided by total average tangible equity.

 

Washington Trust Bancorp, Inc. and Subsidiaries

SUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures (continued)

(Unaudited; Dollars in thousands, except per share amounts)



The following table presents tangible book value per share and the ratio of tangible equity to tangible assets:


Mar 31,
2025

Dec 31,
2024

Sep 30,
2024

Jun 30,
2024

Mar 31,
2024

Tangible Book Value per Share:






Total shareholders' equity, as reported

$521,680

$499,728

$502,229

$470,957

$466,920

Less end of period balances of:






Goodwill

63,909

63,909

63,909

63,909

63,909

Identifiable intangible assets, net

2,682

2,885

3,089

3,295

3,503

Total tangible shareholders' equity (non-GAAP)

455,089

432,934

435,231

403,753

399,508







Shares outstanding, as reported

19,276

19,274

17,058

17,058

17,033







Book value per share

$27.06

$25.93

$29.44

$27.61

$27.41

Tangible book value per share (non-GAAP)

$23.61

$22.46

$25.51

$23.67

$23.45







Tangible Equity to Tangible Assets:






Total tangible shareholders' equity

$455,089

$432,934

$435,231

$403,753

$399,508







Total assets, as reported

6,586,015

6,930,647

7,141,571

7,184,360

7,249,124

Less end of period balances of:






Goodwill

63,909

63,909

63,909

63,909

63,909

Identifiable intangible assets, net

2,682

2,885

3,089

3,295

3,503

Total tangible assets (non-GAAP)

6,519,424

6,863,853

7,074,573

7,117,156

7,181,712







Equity to assets

7.92 %

7.21 %

7.03 %

6.56 %

6.44 %

Tangible equity to tangible assets (non-GAAP)

6.98 %

6.31 %

6.15 %

5.67 %

5.56 %

Category: Earnings

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SOURCE Washington Trust Bancorp, Inc.