Washington Trust Reports Fourth Quarter and Full-Year 2023 Earnings

WESTERLY, R.I., Jan. 24, 2024 /PRNewswire/ — Washington Trust Bancorp, Inc. (Nasdaq: WASH), parent company of The Washington Trust Company, today announced fourth quarter 2023 net income of $12.9 million, or $0.76 per diluted share, compared to net income of $11.2 million, or $0.65 per diluted share, for the third quarter of 2023.  Net income for the year ended December 31, 2023 totaled of $48.2 million, or $2.82 per diluted share, compared to $71.7 million, or $4.11 per diluted share, reported for the prior year.

In October 2023, the Commonwealth of Massachusetts enacted into law a tax bill changing how corporations calculate their Massachusetts taxable income effective on January 1, 2025.  As required, the Corporation revalued its deferred tax assets and liabilities and in the fourth quarter of 2023 increased its net deferred tax assets by $3.3 million with a corresponding decrease to income tax expense.  This increased fourth quarter and full-year 2023 earnings per diluted share by $0.19.

“Washington Trust’s year-end results reflect the Corporation’s continued perseverance in facing economic headwinds and addressing numerous challenges posed by a difficult operating environment,” stated Edward O. Handy III, Washington Trust Chairman and Chief Executive Officer. “While we remain cautious about economic growth in 2024, we believe our diversified business model, disciplined credit culture, and dedicated team will guide us going forward.”

Selected financial highlights for the fourth quarter and full-year 2023 include:

Returns on average equity and average assets for the fourth quarter were 11.77% and 0.71%, respectively, compared to 9.65% and 0.62%, respectively, for the preceding quarter. Full-year returns on average equity and average assets for 2023 were 10.57% and 0.69%, respectively, compared to 14.49% and 1.17%, respectively, for the prior year.
The net interest margin was 1.88% in the fourth quarter, compared to 1.97% in the preceding quarter. Full-year net interest margin for 2023 was 2.05%, down 64 basis points from the 2.69% reported in the prior year.
In the fourth quarter, a provision for credit losses of $1.2 million was recognized, up by $700 thousand from the provision recognized in the preceding quarter. The provision for credit losses in 2023 totaled $3.2 million, compared to a negative provision of $1.3 million recognized in the prior year.
Total loans amounted to $5.6 billion, up by 1% from the end of the preceding quarter.
In-market deposits (total deposits less wholesale brokered deposits) amounted to $4.7 billion, down by 1% from September 30, 2023.

Net Interest IncomeNet interest income was $32.7 million for the fourth quarter of 2023, down by $1.1 million, or 3%, from the third quarter of 2023.  The net interest margin was 1.88% for the fourth quarter, a decrease of 9 basis points from the preceding quarter.  The declines in net interest income and net interest margin reflect the impact of rapid interest rate increases.  Linked quarter changes included:

Average interest-earning assets increased by $103 million, due to an increase of $139 million in average loans, partially offset by declines in investment securities. The yield on interest-earning assets for the fourth quarter was 4.81%, up by 12 basis points from the preceding quarter.
Average interest-bearing liabilities increased by $126 million, with increases in average wholesale funding balances of $105 million and average in-market deposits of $21 million. The cost of interest-bearing liabilities for the fourth quarter of 2023 was 3.49%, up by 23 basis points from the preceding quarter.

Noninterest IncomeNoninterest income totaled $13.3 million for the fourth quarter of 2023, down by $1.9 million, or 13%, from the third quarter of 2023.  Linked quarter changes included:

Wealth management revenues amounted to $8.9 million in the fourth quarter of 2023, down by $67 thousand, or 1%, on a linked quarter basis. This correlated with a decrease in the average balance of wealth management assets under administration (“AUA”), which was down by approximately $58 million, or 1%, from the preceding quarter.

The end of period AUA balance at December 31, 2023 amounted to $6.6 billion, up by $457 million, or 7%, from September 30, 2023.  This increase reflected net investment appreciation of $503 million, partially offset by net client asset outflows of $46 million.

Mortgage banking revenues totaled $1.6 million for the fourth quarter of 2023, down by $554 thousand, or 26%, from the preceding quarter, with lower realized gains on loan sales, partially offset by changes in the fair value of mortgage loans held for sale and forward loan commitments. Realized gains decreased by $613 thousand, or 35%, from the preceding quarter, due to a lower volume of loans sold and a lower sales yield. Loans sold amounted to $67.5 million in the fourth quarter of 2023, down by $21.2 million, or 24%, from the preceding quarter.
Loan related derivative income from interest rate swap contracts with commercial borrowers in the fourth quarter of 2023 totaled $112 thousand, down by $970 thousand, or 90%, from the preceding quarter, reflecting a decline in volume.

Non Interest Expense Non interest expense totaled $32.6 million for the fourth quarter of 2023, down by $1.8 million, or 5%, from the third quarter of 2023.  Linked quarter changes included:

Salaries and employee benefits expense amounted to $18.5 million, down by $3.2 million, or 15%, from the preceding quarter reflecting adjustments to performance-based compensation accruals.
Other noninterest expenses totaled $3.6 million, up by $1.3 million, or 56%, from the preceding quarter, largely due to a $1.0 million contribution made by Washington Trust to its charitable foundation.

Income TaxIn the fourth quarter of 2023, a $774 thousand income tax benefit was recognized, reflecting an effective tax rate of negative 6.4%.  As previously mentioned, income tax expense was reduced by a net $3.3 million adjustment largely associated with the revaluation of the Corporation’s net deferred tax assets due to the enactment of a tax bill into law by the Commonwealth of Massachusetts.  The revaluation of our net deferred tax assets is subject to further guidance and interpretation of the law that may be issued.  Excluding this adjustment, the effective tax rate for the fourth quarter of 2023 would have been 20.4%, compared to 20.8% for the preceding quarter.  Based on current federal and applicable state income tax statutes, the Corporation currently expects its full-year 2024 effective tax rate to be approximately 21.2%.

Investment SecuritiesThe securities portfolio totaled $1.0 billion at December 31, 2023, up by $41 million, or 4%, from September 30, 2023, reflecting an increase of $59 million in the fair value of available for sale debt securities due to changes in market interest rates, partially offset by routine pay-downs and maturities.  The securities portfolio represented 14% of total assets at December 31, 2023, compared to 13% of total assets at September 30, 2023.

LoansTotal loans amounted to $5.6 billion at December 31, 2023, up by $37 million, or 1%, from the end of the preceding quarter and up by $538 million, or 11%, from the balance at December 31, 2022.  These changes included:

Commercial loans increased by $36 million, or 1%, from September 30, 2023, reflecting originations and advances of $99 million, partially offset by principal payments of $63 million. Commercial loans increased by $226 million, or 9%, from December 31, 2022, reflecting originations and advances of $472 million, partially offset by principal payments of $246 million.
Residential real estate loans decreased by $7 million, or 0.3%, from September 30, 2023 and increased by $281 million, or 12%, from December 31, 2022. In the fourth quarter of 2023, residential real estate loans originated for portfolio amounted to $40 million, down by $122 million, or 75%, from the preceding quarter. Full-year 2023 residential real estate loans originated for portfolio amounted to $460 million, down by $422 million, or 48%, from 2022.
The consumer loan portfolio increased by $7 million, or 2%, from September 30, 2023, and up by $30 million, or 10%, from December 31, 2022, largely reflecting growth in home equity lines and loans.

Deposits and BorrowingsTotal deposits amounted to $5.3 billion at December 31, 2023, down by $67 million, or 1%, from the end of the preceding quarter and up by $329 million, or 7%, from a year ago.  Uninsured deposits, after exclusions (as detailed in the financial tables below) amounted to $964 million, or 18% of total deposits, at December 31, 2023.

In-market deposits, which exclude wholesale brokered deposits, amounted to $4.7 billion at December 31, 2023, down by $53 million, or 1%, from September 30, 2023 and up by $33 million, or 1%, from a year ago.  As of December 31, 2023, in-market deposits were approximately 60% retail and 40% commercial.  The average size of our in-market deposit accounts was approximately $36 thousand at December 31, 2023.

Wholesale brokered deposits amounted to $654 million and were down by $14 million, or 2%, from September 30, 2023 and up by $296 million, or 83%, from a year ago. 

FHLB advances totaled $1.2 billion at December 31, 2023, up by $70 million, or 6%, from September 30, 2023 and up by $210 million, or 21%, from a year ago.  As of December 31, 2023, contingent liquidity amounted to $1.9 billion and consisted of noninterest-bearing cash, unencumbered securities and unused collateralized borrowing capacity.

Asset QualityNonaccrual loans were $44.6 million, or 0.79% of total loans, at December 31, 2023, compared to $33.7 million, or 0.60% of total loans, at September 30, 2023.  The increase in nonaccrual loans was largely due to one commercial real estate loan that was placed on nonaccrual status in the quarter.  The composition of nonaccrual loans at December 31, 2023 was 75% commercial and 25% residential and consumer.

Past due loans were $11.3 million, or 0.20% of total loans, at December 31, 2023, compared to $9.7 million, or 0.17% of total loans, at September 30, 2023.  The composition of past due loans at December 31, 2023 was essentially 100% residential and consumer.

The allowance for credit losses (“ACL”) on loans amounted to $41.1 million, or 0.73% of total loans, at December 31, 2023, compared to $40.2 million, or 0.72% of total loans, at September 30, 2023.  The ACL on unfunded commitments, included in other liabilities on the Consolidated Balance Sheets, was $1.9 million at December 31, 2023, compared to $2.0 million at September 30, 2023.

The provision for credit losses totaled $1.2 million in the fourth quarter of 2023, up by $700 thousand from the preceding quarter.  The provision for credit losses in the fourth quarter of 2023 was composed of a provision for credit losses on loans of $1.3 million and a negative provision (or a benefit) for credit losses on unfunded commitments of $50 thousand.

In the fourth quarter of 2023, net charge-offs of $406 thousand were recognized, compared to $30 thousand in the preceding quarter.  Full-year net charge-offs totaled $520 thousand in 2023, compared to net recoveries of $368 thousand in the prior year.

Capital and DividendsTotal shareholders’ equity was $472.7 million at December 31, 2023, up by $41.3 million, or 10%, from September 30, 2023.   This included an increase of $37.6 million in the accumulated other comprehensive income (“AOCI”) component of shareholders’ equity and net income of $12.9 million, partially offset by $9.6 million in dividend declarations.  The increase in AOCI included an increase in the fair value of available for sale securities due to changes in market interest rates, partially offset by a decrease of $5.0 million associated with the annual remeasurement of pension liabilities.

The Board of Directors declared a quarterly dividend of 56 cents per share for the quarter ended December 31, 2023.  The dividend was paid on January 12, 2024 to shareholders of record on January 2, 2024.  Full-year dividends declared totaled $2.24 per share in 2023, an increase of 6 cents per share, or 3%, from 2022.

Capital levels at December 31, 2023 exceeded the regulatory minimum levels to be considered well capitalized, with a total risk-based capital ratio of 11.58% at December 31, 2023, compared to 11.48% at September 30, 2023.  Book value per share was $27.75 at December 31, 2023, compared to $25.35 at September 30, 2023.

Conference CallWashington Trust will host a conference call to discuss its fourth quarter results, business highlights and outlook on Thursday, January 25, 2024 at 8:30 a.m. (Eastern Time).  Individuals may dial in to the call at 1-833-470-1428 and enter Access Code 359112.  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 384692.  The audio replay will be available through February 8, 2024.  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 March 31, 2024.

BackgroundWashington 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 StatementsThis 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 on a national basis and in the local markets in which we operate;
changes in customer behavior due to political, business and economic conditions, including inflation and concerns about liquidity;
interest rate changes or volatility, as well as changes in the balance and mix of loans and deposits;
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 legislation or regulation and 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, 2022, 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 MeasuresIn 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, which consists of 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)

Dec 31,
2023

Sep 30,
2023

Jun 30,
2023

Mar 31,
2023

Dec 31,
2022

Assets:

Cash and due from banks

$86,824

$109,432

$124,877

$134,989

$115,492

Short-term investments

3,360

3,577

3,439

3,291

2,930

Mortgage loans held for sale, at fair value

20,077

10,550

20,872

7,445

8,987

Available for sale debt securities, at fair value

1,000,380

958,990

1,022,458

1,054,747

993,928

Federal Home Loan Bank stock, at cost

51,893

52,668

45,868

42,501

43,463

Loans:

Total loans

5,647,706

5,611,115

5,381,113

5,227,969

5,110,139

Less: allowance for credit losses on loans

41,057

40,213

39,343

38,780

38,027

Net loans

5,606,649

5,570,902

5,341,770

5,189,189

5,072,112

Premises and equipment, net

32,291

31,976

32,591

31,719

31,550

Operating lease right-of-use assets

29,364

27,882

28,633

26,170

27,156

Investment in bank-owned life insurance

103,736

103,003

102,293

101,782

102,182

Goodwill

63,909

63,909

63,909

63,909

63,909

Identifiable intangible assets, net

3,711

3,919

4,130

4,342

4,554

Other assets

200,653

246,667

220,920

199,098

193,788

Total assets

$7,202,847

$7,183,475

$7,011,760

$6,859,182

$6,660,051

Liabilities:

Deposits:

Noninterest-bearing deposits

$693,746

$773,261

$758,242

$829,763

$858,953

Interest-bearing deposits

4,654,414

4,642,302

4,556,236

4,438,751

4,160,009

Total deposits

5,348,160

5,415,563

5,314,478

5,268,514

5,018,962

Federal Home Loan Bank advances

1,190,000

1,120,000

1,040,000

925,000

980,000

Junior subordinated debentures

22,681

22,681

22,681

22,681

22,681

Operating lease liabilities

32,027

30,554

31,302

28,622

29,558

Other liabilities

137,293

163,273

144,138

149,382

155,181

Total liabilities

6,730,161

6,752,071

6,552,599

6,394,199

6,206,382

Shareholders’ Equity:

Common stock

1,085

1,085

1,085

1,085

1,085

Paid-in capital

126,150

126,310

125,685

127,734

127,056

Retained earnings

501,917

498,521

496,996

495,231

492,043

Accumulated other comprehensive loss

(141,153)

(178,734)

(148,827)

(141,760)

(157,800)

Treasury stock, at cost

(15,313)

(15,778)

(15,778)

(17,307)

(8,715)

Total shareholders’ equity

472,686

431,404

459,161

464,983

453,669

Total liabilities and shareholders’ equity

$7,202,847

$7,183,475

$7,011,760

$6,859,182

$6,660,051

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

For the Twelve Months
Ended

Dec 31,
2023

Sep 30,
2023

Jun 30,
2023

Mar 31,
2023

Dec 31,
2022

Dec 31,
2023

Dec 31,
2022

Interest income:

Interest and fees on loans

$74,236

$70,896

$65,449

$59,749

$53,644

$270,330

$169,301

Interest on mortgage loans held for sale

255

332

241

152

314

980

1,165

Taxable interest on debt securities

7,191

7,271

7,403

7,194

6,618

29,059

21,827

Dividends on Federal Home Loan Bank stock

982

878

858

597

330

3,315

548

Other interest income

1,282

1,344

1,279

1,070

855

4,975

1,624

Total interest and dividend income

83,946

80,721

75,230

68,762

61,761

308,659

194,465

Interest expense:

Deposits

37,067

34,069

29,704

19,589

12,301

120,429

26,023

Federal Home Loan Bank advances

13,814

12,497

11,652

11,626

7,822

49,589

11,713

Junior subordinated debentures

411

404

374

354

296

1,543

739

Total interest expense

51,292

46,970

41,730

31,569

20,419

171,561

38,475

Net interest income

32,654

33,751

33,500

37,193

41,342

137,098

155,990

Provision for credit losses

1,200

500

700

800

800

3,200

(1,300)

Net interest income after provision for credit losses

31,454

33,251

32,800

36,393

40,542

133,898

157,290

Noninterest income:

Wealth management revenues

8,881

8,948

9,048

8,663

8,624

35,540

38,746

Mortgage banking revenues

1,554

2,108

1,753

1,245

1,103

6,660

8,733

Card interchange fees

1,254

1,267

1,268

1,132

1,242

4,921

4,996

Service charges on deposit accounts

688

674

667

777

942

2,806

3,192

Loan related derivative income

112

1,082

247

(51)

745

1,390

2,756

Income from bank-owned life insurance

734

710

879

1,165

691

3,488

2,591

Other income

83

437

463

352

441

1,335

1,588

Total noninterest income

13,306

15,226

14,325

13,283

13,788

56,140

62,602

Noninterest expense:

Salaries and employee benefits

18,464

21,622

20,588

21,784

20,812

82,458

83,804

Outsourced services

3,667

3,737

3,621

3,496

3,568

14,521

13,737

Net occupancy

2,396

2,387

2,416

2,437

2,418

9,636

9,126

Equipment

1,133

1,107

1,050

1,028

1,002

4,318

3,797

Legal, audit and professional fees

959

1,058

978

896

987

3,891

3,127

FDIC deposit insurance costs

1,239

1,185

1,371

872

489

4,667

1,687

Advertising and promotion

938

789

427

408

713

2,562

2,587

Amortization of intangibles

208

211

212

212

212

843

860

Other expenses

3,583

2,294

2,353

2,431

3,158

10,661

9,997

Total noninterest expense

32,587

34,390

33,016

33,564

33,359

133,557

128,722

Income before income taxes

12,173

14,087

14,109

16,112

20,971

56,481

91,170

Income tax (benefit) expense

(774)

2,926

2,853

3,300

4,398

8,305

19,489

Net income

$12,947

$11,161

$11,256

$12,812

$16,573

$48,176

$71,681

Net income available to common shareholders

$12,931

$11,140

$11,237

$12,783

$16,535

$48,091

$71,479

Weighted average common shares outstanding:

  Basic

17,029

17,019

17,011

17,074

17,180

17,033

17,246

  Diluted

17,070

17,041

17,030

17,170

17,319

17,062

17,381

Earnings per common share:

  Basic

$0.76

$0.65

$0.66

$0.75

$0.96

$2.82

$4.14

  Diluted

$0.76

$0.65

$0.66

$0.74

$0.95

$2.82

$4.11

Cash dividends declared per share

$0.56

$0.56

$0.56

$0.56

$0.56

$2.24

$2.18

Washington Trust Bancorp, Inc. and Subsidiaries

SELECTED FINANCIAL HIGHLIGHTS

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

Dec 31,
2023

Sep 30,
2023

Jun 30,
2023

Mar 31,
2023

Dec 31,
2022

Share and Equity Related Data:

Book value per share

$27.75

$25.35

$26.98

$27.37

$26.40

Tangible book value per share – Non-GAAP (1)

$23.78

$21.36

$22.98

$23.36

$22.42

Market value per share

$32.38

$26.33

$26.81

$34.66

$47.18

Shares issued at end of period

17,363

17,363

17,363

17,363

17,363

Shares outstanding at end of period

17,031

17,019

17,019

16,986

17,183

Capital Ratios (2):

Tier 1 risk-based capital

10.86 %

10.77 %

11.09 %

11.28 %

11.69 %

Total risk-based capital

11.58 %

11.48 %

11.81 %

12.01 %

12.37 %

Tier 1 leverage ratio

7.80 %

7.87 %

8.05 %

8.25 %

8.65 %

Common equity tier 1

10.44 %

10.35 %

10.66 %

10.84 %

11.24 %

Balance Sheet Ratios:

Equity to assets

6.56 %

6.01 %

6.55 %

6.78 %

6.81 %

Tangible equity to tangible assets – Non-GAAP (1)

5.68 %

5.11 %

5.63 %

5.84 %

5.84 %

Loans to deposits (3)

105.2 %

103.1 %

100.9 %

98.6 %

101.2 %

For the Twelve Months
Ended

For the Three Months Ended

Dec 31,
2023

Sep 30,
2023

Jun 30,
2023

Mar 31,
2023

Dec 31,
2022

Dec 31,
2023

Dec 31,
2022

Performance Ratios (4):

Net interest margin (5)

1.88 %

1.97 %

2.03 %

2.33 %

2.65 %

2.05 %

2.69 %

Return on average assets (net income divided by
      average assets)

0.71 %

0.62 %

0.65 %

0.77 %

1.01 %

0.69 %

1.17 %

Return on average tangible assets – Non-GAAP (1)

0.72 %

0.63 %

0.66 %

0.78 %

1.03 %

0.70 %

1.19 %

Return on average equity (net income available for
common shareholders divided by average equity)

11.77 %

9.65 %

9.67 %

11.27 %

14.96 %

10.57 %

14.49 %

Return on average tangible equity – Non-GAAP (1)

13.93 %

11.33 %

11.32 %

13.23 %

17.74 %

12.43 %

16.84 %

Efficiency ratio (6)

70.9 %

70.2 %

69.0 %

66.5 %

60.5 %

69.1 %

58.9 %

(1)

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

(2)

Estimated for December 31, 2023 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)

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

For the Twelve Months
Ended

Dec 31,
2023

Sep 30,
2023

Jun 30,
2023

Mar 31,
2023

Dec 31,
2022

Dec 31,
2023

Dec 31,
2022

Wealth Management Results

Wealth Management Revenues:

Asset-based revenues

$8,634

$8,683

$8,562

$8,429

$8,448

$34,308

$37,602

Transaction-based revenues

247

265

486

234

176

1,232

1,144

Total wealth management revenues

$8,881

$8,948

$9,048

$8,663

$8,624

$35,540

$38,746

Assets Under Administration (AUA):

Balance at beginning of period

$6,131,395

$6,350,260

$6,163,422

$5,961,990

$6,322,757

$5,961,990

$7,784,211

Net investment appreciation (depreciation) and
     income

503,209

(154,269)

259,788

286,262

312,407

894,990

(1,132,378)

Net client asset outflows

(46,198)

(64,596)

(72,950)

(84,830)

(673,174)

(268,574)

(689,843)

Balance at end of period

$6,588,406

$6,131,395

$6,350,260

$6,163,422

$5,961,990

$6,588,406

$5,961,990

Percentage of AUA that are managed assets

91 %

91 %

91 %

91 %

91 %

91 %

91 %

Mortgage Banking Results

Mortgage Banking Revenues:

Realized gains on loan sales, net (1)

$1,133

$1,746

$827

$576

$992

$4,282

$7,954

Changes in fair value, net (2)

(65)

(171)

382

86

(426)

232

(1,224)

Loan servicing fee income, net (3)

486

533

544

583

537

2,146

2,003

Total mortgage banking revenues

$1,554

$2,108

$1,753

$1,245

$1,103

$6,660

$8,733

Residential Mortgage Loan Originations:

Originations for retention in portfolio (4)

$39,827

$161,603

$148,694

$109,768

$228,579

$459,892

$881,874

Originations for sale to secondary market (5)

76,495

78,339

77,995

27,763

39,087

260,592

309,407

Total mortgage loan originations

$116,322

$239,942

$226,689

$137,531

$267,666

$720,484

$1,191,281

Residential Mortgage Loans Sold:

Sold with servicing rights retained

$28,290

$34,046

$28,727

$17,114

$27,085

$108,177

$99,849

Sold with servicing rights released (5)

39,170

54,575

35,836

12,214

27,470

141,795

239,899

Total mortgage loans sold

$67,460

$88,621

$64,563

$29,328

$54,555

$249,972

$339,748

(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)

Dec 31,
2023

Sep 30,
2023

Jun 30,
2023

Mar 31,
2023

Dec 31,
2022

Loans:

Commercial real estate  (1)

$2,106,359

$2,063,383

$1,940,030

$1,909,136

$1,829,304

Commercial & industrial

605,072

611,565

611,472

609,720

656,397

Total commercial

2,711,431

2,674,948

2,551,502

2,518,856

2,485,701

Residential real estate (2)

2,604,478

2,611,100

2,510,125

2,403,255

2,323,002

Home equity

312,594

305,683

301,116

288,878

285,715

Other

19,203

19,384

18,370

16,980

15,721

Total consumer

331,797

325,067

319,486

305,858

301,436

Total loans

$5,647,706

$5,611,115

$5,381,113

$5,227,969

$5,110,139

(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.

December 31, 2023

December 31, 2022

Balance

% of Total

Balance

% of Total

Commercial Real Estate Loans by Property Location:

Connecticut

$815,975

39 %

$691,780

38 %

Massachusetts

645,736

31

566,717

31

Rhode Island

430,899

20

387,759

21

Subtotal

1,892,610

90

1,646,256

90

All other states

213,749

10

183,048

10

Total commercial real estate loans

$2,106,359

100 %

$1,829,304

100 %

Residential Real Estate Loans by Property Location:

Massachusetts

$1,928,206

74 %

$1,698,240

73 %

Rhode Island

481,289

19

446,010

19

Connecticut

165,933

6

153,323

7

Subtotal

2,575,428

99

2,297,573

99

All other states

29,050

1

25,429

1

Total residential real estate loans

$2,604,478

100 %

$2,323,002

100 %

Washington Trust Bancorp, Inc. and Subsidiaries

END OF PERIOD LOAN COMPOSITION

(Unaudited; Dollars in thousands)

December 31, 2023

December 31, 2022

Balance

% of Total

Balance

% of Total

Commercial Real Estate Portfolio Segmentation:

Multi-family dwelling

$546,694

26 %

$469,233

26 %

Retail

434,913

21

421,617

23

Industrial and warehouse

307,987

15

192,717

11

Office

284,199

13

257,551

14

Hospitality

235,015

11

214,829

12

Healthcare

175,490

8

136,225

7

Commercial mixed use

49,079

2

54,976

3

Other

72,982

4

82,156

4

Total commercial real estate loans

$2,106,359

100 %

$1,829,304

100 %

Commercial & Industrial Portfolio Segmentation:

Healthcare and social assistance

$166,490

28 %

$193,052

29 %

Real estate rental and leasing

70,540

12

72,429

11

Transportation and warehousing

63,789

11

51,347

8

Manufacturing

54,905

9

60,601

9

Retail trade

43,746

7

56,012

9

Educational services

41,968

7

46,708

7

Finance and insurance

33,617

6

28,313

4

Information

22,674

4

23,948

4

Arts, entertainment and recreation

22,249

4

25,646

4

Accommodation and food services

13,502

2

17,167

3

Professional, scientific and technical services

7,998

1

6,451

1

Public administration

3,019

3,789

1

Other

60,575

9

70,934

10

Total commercial & industrial loans

$605,072

100 %

$656,397

100 %

Weighted Average

Asset Quality

December 31, 2023

Balance(2) (3)

Average

 Loan

Size (4)

Loan to
Value

Debt

 Service
Coverage

Pass

Special
Mention

Classified

Nonaccrual (included in
Classified)

Commercial Real Estate – Office by Class:

Class A

$113,129

$10,381

58 %

1.59x

$106,776

$6,353

$—

$—

Class B

94,702

4,376

68 %

1.50x

72,154

22,548

19,047

Class C

13,116

1,639

59 %

1.38x

13,116

Medical Office

40,760

6,405

61 %

1.40x

40,760

Lab Space

22,492

23,461

77 %

1.34x

4,062

18,430

Total office (1)

$284,199

$6,307

64 %

1.49x

$236,868

$6,353

$40,978

$19,047

(1)

Approximately 66% of the total commercial real estate office balance of $284 million is secured by income producing properties located in suburban areas.  Additionally, approximately 33% of the total commercial real estate office balance is expected to mature in two years.

(2)

The balance of commercial real estate office consists of 50 loans.

(3)

Does not include $31.1 million of unfunded commitments.

(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)

Dec 31,
2023

Sep 30,
2023

Jun 30,
2023

Mar 31,
2023

Dec 31,
2022

Deposits:

Noninterest-bearing demand deposits

$693,746

$773,261

$758,242

$829,763

$858,953

Interest-bearing demand deposits (in-market)

504,959

490,217

428,306

318,365

302,044

NOW accounts

767,036

745,778

791,887

828,700

871,875

Money market accounts

1,096,959

1,111,797

1,164,557

1,214,014

1,255,805

Savings accounts

497,223

514,526

521,185

544,604

576,250

Time deposits (in-market)

1,134,187

1,111,942

1,048,820

924,506

795,838

In-market deposits

4,694,110

4,747,521

4,712,997

4,659,952

4,660,765

Wholesale brokered demand deposits

1,233

31,153

Wholesale brokered time deposits

654,050

668,042

601,481

607,329

327,044

Wholesale brokered deposits

654,050

668,042

601,481

608,562

358,197

Total deposits

$5,348,160

$5,415,563

$5,314,478

$5,268,514

$5,018,962

December 31, 2023

December 31, 2022

Balance

% of Total
Deposits

Balance

% of Total
Deposits

Uninsured Deposits:

Uninsured deposits (1)

$1,260,672

24 %

$1,514,900

30 %

Less: affiliate deposits (2)

92,645

2

210,444

4

Uninsured deposits, excluding affiliate deposits

1,168,027

22

1,304,456

26

Less: fully-collateralized preferred deposits (3)

204,327

4

329,868

7

Uninsured deposits, after exclusions

$963,700

18 %

$974,588

19 %

(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.

Dec 31,
2023

Dec 31,
2022

Contingent Liquidity:

Federal Home Loan Bank of Boston

$1,086,607

$668,295

Federal Reserve Bank of Boston

65,759

27,059

Noninterest-bearing cash

54,970

49,727

Unencumbered securities

680,857

691,893

Total

$1,888,193

$1,436,974

Percentage of total contingent liquidity to uninsured deposits

149.8 %

94.9 %

Percentage of total contingent liquidity to uninsured deposits, after exclusions

195.9 %

147.4 %

Washington Trust Bancorp, Inc. and Subsidiaries

CREDIT & ASSET QUALITY DATA

(Unaudited; Dollars in thousands)

Dec 31,
2023

Sep 30,
2023

Jun 30,
2023

Mar 31,
2023

Dec 31,
2022

Asset Quality Ratios:

Nonperforming assets to total assets

0.63 %

0.48 %

0.16 %

0.21 %

0.19 %

Nonaccrual loans to total loans

0.79 %

0.60 %

0.19 %

0.27 %

0.25 %

Total past due loans to total loans

0.20 %

0.17 %

0.12 %

0.15 %

0.23 %

Allowance for credit losses on loans to nonaccrual loans

92.02 %

119.50 %

378.04 %

277.40 %

296.02 %

Allowance for credit losses on loans to total loans

0.73 %

0.72 %

0.73 %

0.74 %

0.74 %

Nonperforming Assets:

Commercial real estate

$32,827

$22,609

$—

$1,601

$—

Commercial & industrial

682

696

899

920

Total commercial

33,509

23,305

899

2,521

Residential real estate

9,626

9,446

8,542

10,470

11,894

Home equity

1,483

901

966

989

952

Other consumer

Total consumer

1,483

901

966

989

952

Total nonaccrual loans

44,618

33,652

10,407

13,980

12,846

Other real estate owned

683

683

683

683

Total nonperforming assets

$45,301

$34,335

$11,090

$14,663

$12,846

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

Commercial real estate

$—

$—

$—

$1,188

$1,187

Commercial & industrial

10

4

223

229

265

Total commercial

10

4

223

1,417

1,452

Residential real estate

8,116

7,785

4,384

5,730

8,875

Home equity

3,196

1,925

1,509

833

1,235

Other consumer

23

19

214

15

16

Total consumer

3,219

1,944

1,723

848

1,251

Total past due loans

$11,345

$9,733

$6,330

$7,995

$11,578

Accruing loans 90 days or more past due

$—

$—

$—

$—

$—

Nonaccrual loans included in past due loans

$6,877

$5,710

$3,672

$5,648

$7,196

Washington Trust Bancorp, Inc. and Subsidiaries

CREDIT & ASSET QUALITY DATA

(Unaudited; Dollars in thousands)

For the Three Months Ended

For the Twelve Months
Ended

Dec 31,
2023

Sep 30,
2023

Jun 30,
2023

Mar 31,
2023

Dec 31,
2022

Dec 31,
2023

Dec 31,
2022

Nonaccrual Loan Activity:

Balance at beginning of period

$33,652

$10,407

$13,980

$12,846

$12,122

$12,846

$14,203

Additions to nonaccrual status

12,018

25,088

600

2,570

2,485

40,276

3,591

Loans returned to accruing status

(197)

(1,329)

(110)

(1,636)

(699)

Loans charged-off

(420)

(44)

(52)

(61)

(62)

(577)

(184)

Loans transferred to other real estate owned

(683)

(683)

Payments, payoffs and other changes

(632)

(1,602)

(2,792)

(582)

(1,699)

(5,608)

(4,065)

Balance at end of period

$44,618

$33,652

$10,407

$13,980

$12,846

$44,618

$12,846

Allowance for Credit Losses on Loans:

Balance at beginning of period

$40,213

$39,343

$38,780

$38,027

$36,863

$38,027

$39,088

Provision for credit losses on loans (1)

1,250

900

600

800

900

3,550

(1,429)

Charge-offs

(420)

(44)

(52)

(61)

(62)

(577)

(184)

Recoveries

14

14

15

14

326

57

552

Balance at end of period

$41,057

$40,213

$39,343

$38,780

$38,027

$41,057

$38,027

Allowance for Credit Losses on Unfunded Commitments:

Balance at beginning of period

$1,990

$2,390

$2,290

$2,290

$2,390

$2,290

$2,161

Provision for credit losses on unfunded commitments (1)

(50)

(400)

100

(100)

(350)

129

Balance at end of period (2)

$1,940

$1,990

$2,390

$2,290

$2,290

$1,940

$2,290

(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

For the Twelve Months
Ended

Dec 31,
2023

Sep 30,
2023

Jun 30,
2023

Mar 31,
2023

Dec 31,
2022

Dec 31,
2023

Dec 31,
2022

Net Loan Charge-Offs (Recoveries):

Commercial real estate

$373

$—

$—

$—

($300)

$373

($445)

Commercial & industrial

10

4

5

6

10

25

7

Total commercial

383

4

5

6

(290)

398

(438)

Residential real estate

(3)

(3)

(21)

Home equity

(7)

(2)

(1)

(8)

(10)

(12)

Other consumer

26

33

34

42

34

135

103

Total consumer

26

26

32

41

26

125

91

Total

$406

$30

$37

$47

($264)

$520

($368)

Net charge-offs (recoveries) to average loans – annualized

0.03 %

— %

— %

— %

(0.02 %)

0.01 %

(0.01 %)

The following tables present average balance and interest rate information.  Tax-exempt income is converted to a fully taxable equivalent (“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 and changes in fair value on mortgage loans held for sale 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

December 31, 2023

September 30, 2023

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

$89,719

$1,282

5.67 %

$102,608

$1,344

5.20 %

($12,889)

($62)

0.47 %

Mortgage loans held for sale

14,620

255

6.92

23,057

332

5.71

(8,437)

(77)

1.21

Taxable debt securities

1,163,042

7,191

2.45

1,181,915

7,271

2.44

(18,873)

(80)

0.01

FHLB stock

50,662

982

7.69

46,889

878

7.43

3,773

104

0.26

Commercial real estate

2,087,447

33,260

6.32

2,004,204

31,526

6.24

83,243

1,734

0.08

Commercial & industrial

606,822

9,903

6.47

609,604

9,896

6.44

(2,782)

7

0.03

Total commercial

2,694,269

43,163

6.36

2,613,808

41,422

6.29

80,461

1,741

0.07

Residential real estate

2,606,432

26,303

4.00

2,552,602

24,976

3.88

53,830

1,327

0.12

Home equity

307,601

4,774

6.16

303,144

4,514

5.91

4,457

260

0.25

Other

19,275

238

4.90

18,813

225

4.74

462

13

0.16

Total consumer

326,876

5,012

6.08

321,957

4,739

5.84

4,919

273

0.24

Total loans

5,627,577

74,478

5.25

5,488,367

71,137

5.14

139,210

3,341

0.11

Total interest-earning assets

6,945,620

84,188

4.81

6,842,836

80,962

4.69

102,784

3,226

0.12

Noninterest-earning assets

245,955

272,321

(26,366)

Total assets

$7,191,575

$7,115,157

$76,418

Liabilities and Shareholders’ Equity:

Interest-bearing demand deposits (in-
     market)

$506,365

$5,733

4.49 %

$461,760

$5,060

4.35 %

$44,605

$673

0.14 %

NOW accounts

721,820

417

0.23

742,690

419

0.22

(20,870)

(2)

0.01

Money market accounts

1,139,403

10,339

3.60

1,173,284

9,929

3.36

(33,881)

410

0.24

Savings accounts

501,027

622

0.49

516,342

429

0.33

(15,315)

193

0.16

Time deposits (in-market)

1,127,236

11,192

3.94

1,080,395

9,880

3.63

46,841

1,312

0.31

Interest-bearing in-market deposits

3,995,851

28,303

2.81

3,974,471

25,717

2.57

21,380

2,586

0.24

Wholesale brokered demand deposits

Wholesale brokered time deposits

669,342

8,764

5.19

659,624

8,352

5.02

9,718

412

0.17

Wholesale brokered deposits

669,342

8,764

5.19

659,624

8,352

5.02

9,718

412

0.17

Total interest-bearing deposits

4,665,193

37,067

3.15

4,634,095

34,069

2.92

31,098

2,998

0.23

FHLB advances

1,148,533

13,814

4.77

1,053,370

12,497

4.71

95,163

1,317

0.06

Junior subordinated debentures

22,681

411

7.19

22,681

404

7.07

7

0.12

Total interest-bearing liabilities

5,836,407

51,292

3.49

5,710,146

46,970

3.26

126,261

4,322

0.23

Noninterest-bearing demand deposits

734,966

773,424

(38,458)

Other liabilities

184,143

173,572

10,571

Shareholders’ equity

436,059

458,015

(21,956)

Total liabilities and shareholders’ equity

$7,191,575

$7,115,157

$76,418

Net interest income (FTE)

$32,896

$33,992

($1,096)

Interest rate spread

1.32 %

1.43 %

(0.11 %)

Net interest margin

1.88 %

1.97 %

(0.09 %)

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

For the Three Months Ended

Dec 31,
2023

Sep 30,
2023

Change

Commercial loans

$242

$241

$1

Total

$242

$241

$1

Washington Trust Bancorp, Inc. and Subsidiaries

CONSOLIDATED AVERAGE BALANCE SHEETS (FTE Basis)

(Unaudited; Dollars in thousands)

For the Twelve Months Ended

December 31, 2023

December 31, 2022

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

$101,166

$4,975

4.92 %

$119,932

$1,624

1.35 %

($18,766)

$3,351

3.57 %

Mortgage loans for sale

17,384

980

5.64

29,539

1,165

3.94

(12,155)

(185)

1.70

Taxable debt securities

1,185,102

29,059

2.45

1,121,413

21,827

1.95

63,689

7,232

0.50

FHLB stock

46,880

3,315

7.07

20,721

548

2.64

26,159

2,767

4.43

Commercial real estate

1,970,580

118,887

6.03

1,679,300

65,660

3.91

291,280

53,227

2.12

Commercial & industrial

615,494

38,326

6.23

632,938

28,099

4.44

(17,444)

10,227

1.79

Total commercial

2,586,074

157,213

6.08

2,312,238

93,759

4.05

273,836

63,454

2.03

Residential real estate

2,490,991

96,080

3.86

1,960,629

65,866

3.36

530,362

30,214

0.50

Home equity

297,396

17,129

5.76

263,578

10,139

3.85

33,818

6,990

1.91

Other

18,085

854

4.72

15,799

724

4.58

2,286

130

0.14

Total consumer

315,481

17,983

5.70

279,377

10,863

3.89

36,104

7,120

1.81

Total loans

5,392,546

271,276

5.03

4,552,244

170,488

3.75

840,302

100,788

1.28

Total interest-earning assets

6,743,078

309,605

4.59

5,843,849

195,652

3.35

899,229

113,953

1.24

Noninterest-earning assets

255,962

258,906

(2,944)

Total assets

$6,999,040

$6,102,755

$896,285

Liabilities and Shareholders’ Equity:

Interest-bearing demand deposits (in-
     market)

$415,725

$17,521

4.21 %

$263,154

$2,891

1.10 %

$152,571

$14,630

3.11 %

NOW accounts

766,492

1,594

0.21

864,084

862

0.10

(97,592)

732

0.11

Money market accounts

1,191,036

37,145

3.12

1,198,714

8,954

0.75

(7,678)

28,191

2.37

Savings accounts

526,275

1,687

0.32

574,349

473

0.08

(48,074)

1,214

0.24

Time deposits (in-market)

1,010,629

33,609

3.33

799,645

8,630

1.08

210,984

24,979

2.25

Interest-bearing in-market deposits

3,910,157

91,556

2.34

3,699,946

21,810

0.59

210,211

69,746

1.75

Wholesale brokered demand deposits

4,015

178

4.43

20,696

494

2.39

(16,681)

(316)

2.04

Wholesale brokered time deposits

602,423

28,695

4.76

386,170

3,719

0.96

216,253

24,976

3.80

Wholesale brokered deposits

606,438

28,873

4.76

406,866

4,213

1.04

199,572

24,660

3.72

Total interest-bearing deposits

4,516,595

120,429

2.67

4,106,812

26,023

0.63

409,783

94,406

2.04

FHLB advances

1,056,726

49,589

4.69

414,263

11,713

2.83

642,463

37,876

1.86

Junior subordinated debentures

22,681

1,543

6.80

22,681

739

3.26

804

3.54

Total interest-bearing liabilities

5,596,002

171,561

3.07

4,543,756

38,475

0.85

1,052,246

133,086

2.22

Noninterest-bearing demand deposits

778,152

923,423

(145,271)

Other liabilities

169,842

142,324

27,518

Shareholders’ equity

455,044

493,252

(38,208)

Total liabilities and shareholders’ equity

$6,999,040

$6,102,755

$896,285

Net interest income (FTE)

$138,044

$157,177

($19,133)

Interest rate spread

1.52 %

2.50 %

(0.98 %)

Net interest margin

2.05 %

2.69 %

(0.64 %)

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

For the Twelve Months Ended

Dec 31,
2023

Dec 31,
2022

Change

Commercial loans

$946

$1,187

($241)

Total

$946

$1,187

($241)

Washington Trust Bancorp, Inc. and Subsidiaries

SUPPLEMENTAL INFORMATION – Calculation of Non-GAAP Financial Measures

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

Dec 31,
2023

Sep 30,
2023

Jun 30,
2023

Mar 31,
2023

Dec 31,
2022

Tangible Book Value per Share:

Total shareholders’ equity, as reported

$472,686

$431,404

$459,161

$464,983

$453,669

Less:

Goodwill

63,909

63,909

63,909

63,909

63,909

Identifiable intangible assets, net

3,711

3,919

4,130

4,342

4,554

Total tangible shareholders’ equity

$405,066

$363,576

$391,122

$396,732

$385,206

Shares outstanding, as reported

17,031

17,019

17,019

16,986

17,183

Book value per share – GAAP

$27.75

$25.35

$26.98

$27.37

$26.40

Tangible book value per share – Non-GAAP

$23.78

$21.36

$22.98

$23.36

$22.42

Tangible Equity to Tangible Assets:

Total tangible shareholders’ equity

$405,066

$363,576

$391,122

$396,732

$385,206

Total assets, as reported

$7,202,847

$7,183,475

$7,011,760

$6,859,182

$6,660,051

Less:

Goodwill

63,909

63,909

63,909

63,909

63,909

Identifiable intangible assets, net

3,711

3,919

4,130

4,342

4,554

Total tangible assets

$7,135,227

$7,115,647

$6,943,721

$6,790,931

$6,591,588

Equity to assets – GAAP

6.56 %

6.01 %

6.55 %

6.78 %

6.81 %

Tangible equity to tangible assets – Non-GAAP

5.68 %

5.11 %

5.63 %

5.84 %

5.84 %

For the Three Months Ended

For the Twelve Months
Ended

Dec 31,
2023

Sep 30,
2023

Jun 30,
2023

Mar 31,
2023

Dec 31,
2022

Dec 31,
2023

Dec 31,
2022

Return on Average Tangible Assets:

Net income, as reported

$12,947

$11,161

$11,256

$12,812

$16,573

$48,176

$71,681

Total average assets, as reported

$7,191,575

$7,115,157

$6,939,238

$6,743,996

$6,480,872

$6,999,040

$6,102,755

Less average balances of:

Goodwill

63,909

63,909

63,909

63,909

63,909

63,909

63,909

Identifiable intangible assets, net

3,812

4,021

4,233

4,445

4,657

4,126

4,977

Total average tangible assets

$7,123,854

$7,047,227

$6,871,096

$6,675,642

$6,412,306

$6,931,005

$6,033,869

Return on average assets – GAAP

0.71 %

0.62 %

0.65 %

0.77 %

1.01 %

0.69 %

1.17 %

Return on average tangible assets – Non-
     GAAP

0.72 %

0.63 %

0.66 %

0.78 %

1.03 %

0.70 %

1.19 %

Return on Average Tangible Equity:

Net income available to common
     shareholders, as reported

$12,931

$11,140

$11,237

$12,783

$16,535

$48,091

$71,479

Total average equity, as reported

$436,059

$458,015

$466,227

$460,106

$438,347

$455,044

$493,252

Less average balances of:

Goodwill

63,909

63,909

63,909

63,909

63,909

63,909

63,909

Identifiable intangible assets, net

3,812

4,021

4,233

4,445

4,657

4,126

4,977

Total average tangible equity

$368,338

$390,085

$398,085

$391,752

$369,781

$387,009

$424,366

Return on average equity – GAAP

11.77 %

9.65 %

9.67 %

11.27 %

14.96 %

10.57 %

14.49 %

Return on average tangible equity – Non-
     GAAP

13.93 %

11.33 %

11.32 %

13.23 %

17.74 %

12.43 %

16.84 %

Category: Earnings

SOURCE Washington Trust Bancorp, Inc.

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