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Washington Trust Bancorp (WASH) Q3 Earnings call transcript Oct 22, 2024

Daily EarningsMonday, Oct 28, 2024 8:28 pm ET

1min read

WASH --

In Washington Trust Bancorp, Inc.'s third-quarter earnings call, the company showcased a solid foundation and a positive outlook for the future. Ned Handy, the CEO, highlighted the company's efforts to build balance sheet strength and rebuild earnings capacity, with a focus on managing credit and maintaining a strong customer franchise. The company's financial results, presented by CFO Ron Ohsberg, revealed a stabilizing margin, increasing fee businesses, and a growing mortgage pipeline.

Financial Performance and Outlook

The financial performance for the third quarter was marked by a net income of $11 million, with net interest income up by 2% and a margin of 1.85%. Noninterest income, excluding a one-time gain from the sale of operations center, saw a 4% increase. Wealth management revenues totaled $10 million, while mortgage banking revenues rose by 4%. The company also reported a 4% increase in assets under administration (AUA), totaling $7.1 billion.

Looking ahead, Washington Trust anticipates a flat margin in the fourth quarter, with expectations for expansion in 2025 as the Fed continues to cut interest rates. The company's focus on managing deposit costs and maintaining a strong balance sheet is expected to pay off, with a growing commercial pipeline and a renewed emphasis on underwriting and growth.

Investing in the Future

Washington Trust's strategic investments in technology and customer-focused teams have contributed to encouraging activity and growth. The opening of a full-service branch in Providence's Olneyville neighborhood is seen as a catalyst for community strength and potential for a new customer base. Although the company does not currently have additional branch expansion plans, it remains dedicated to caring for its customers and communities.

Challenges and Opportunities

The call also touched on challenges, such as the resolution of a $10.5 million loan that is currently 30 days delinquent and is expected to be resolved in the fourth quarter. The company also addressed its office loans, with a focus on credit enhancement and strategic planning for maturities.

In conclusion, Washington Trust Bancorp, Inc.'s third-quarter earnings call presented a picture of a company on solid footing, with a focus on growth and a strategic vision for the future. The company's commitment to managing credit, maintaining a strong customer franchise, and investing in technology and its teams position it well for future success. As the company navigates challenges and opportunities, it remains poised for continued growth and success in the financial services industry.

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