Washington Trust Bancorp Reports $28.1 Million Net Loss for Fiscal Year 2024

Washington Trust Bancorp, Inc. reported a net loss of $28.1 million for the fiscal year ending December 31, 2024, a significant decline from the net income of $48.2 million recorded in 2023. The company's total revenues decreased by 48% to $99.5 million, primarily due to a substantial drop in noninterest income, which resulted in a net loss of $83.9 million. This downturn was largely attributed to balance sheet repositioning transactions that included realized losses on securities and loans. The provision for credit losses also saw a reduction of 25%, amounting to $2.9 million, reflecting management's assessment of the loan portfolio amid changing economic conditions.

In terms of operational metrics, Washington Trust's total assets decreased by 4% to $6.9 billion, while total loans fell by 9% to $5.1 billion. The decline in loans was particularly pronounced in the residential real estate segment, which saw a reduction of $478.3 million, largely due to the reclassification of loans to held for sale. The bank's allowance for credit losses on loans increased to $42 million, representing 0.82% of total loans, up from 0.73% in the previous year. The bank's total deposits also decreased by 4% to $5.1 billion, driven by a significant drop in wholesale brokered time deposits.

Strategically, Washington Trust executed a public offering of 2,198,528 shares at $34.00 per share in December 2024, raising approximately $70.5 million. The proceeds are intended for investments in the bank and to optimize the balance sheet through the sale of lower-yielding loans and securities. Additionally, the bank opened two new full-service branches in Rhode Island in 2024, furthering its geographic expansion efforts. The bank's wealth management segment reported a 10% increase in revenues, driven by higher asset-based revenues, which correlated with a 7% increase in assets under administration, totaling $7.1 billion.

Looking ahead, Washington Trust's management expressed cautious optimism regarding future performance, emphasizing the importance of maintaining strong customer relationships and enhancing digital banking solutions. However, the bank remains vigilant about potential economic challenges, including inflationary pressures and interest rate fluctuations, which could impact loan demand and credit quality. The bank's capital ratios remain strong, with a total risk-based capital ratio of 12.47% as of December 31, 2024, indicating that it is well-capitalized under regulatory standards.