Washington Trust Bancorp (WASH) Q4 2024 earnings summary

Executive summary

• Completed significant balance sheet repositioning and a $70.5 million capital raise, including sale of lower-yielding assets and paydown of expensive wholesale funding, to improve future revenues and growth capacity.

• Reported a Q4 2024 net loss of $60.8 million ($3.46 per share) due to repositioning losses; adjusted Q4 net income was $10.4 million ($0.59 per share).

• Full-year 2024 net loss was $28.1 million ($1.63 per share); adjusted net income was $40.9 million ($2.37 per share), down from $44.9 million in 2023.

• Diversified revenue streams, with 33% of total revenue from fees in FY 2024.

• Named to Forbes Best-in-State Banks for the fourth consecutive year.

Financial highlights

• Net interest income for Q4 rose to $32.9 million, up 2% sequentially; net interest margin improved to 1.95% from 1.85% in Q3.

• Adjusted non-interest income for Q4 was $16 million, down 1% sequentially; wealth management revenues were $10 million, up 1%.

• Q4 noninterest expense was $34.3 million, down 1% from Q3.

• Book value per share at year-end: $25.93; tangible book value per share: $22.46.

• Dividend yield stood at 7.15% as of December 31, 2024.

Outlook and guidance

• Net interest margin projected to rise from 2.30%-2.35% in Q1 2025 to 2.45%-2.50% by Q4 2025.

• FY 2025 average earning assets expected at $6.3–$6.4 billion.

• Full-year 2025 effective tax rate expected to be about 22.5%.

• Wealth management and mortgage banking revenues both expected to grow 5–10%.

• CET1 capital ratio forecasted at 11.9% by year-end 2025.