On July 22, 2024, Washington Trust Bancorp Inc (WASH, Financial) released its 8-K filing for the second quarter of 2024. The company, which offers banking and financial services through its Commercial Banking and Wealth Management Services segments, reported a net income of $10.8 million, or $0.63 per diluted share. This performance exceeded the analyst estimate of $0.49 per share.
Performance Overview
Washington Trust Bancorp Inc (WASH, Financial) reported a net income of $10.8 million for Q2 2024, slightly down from $10.9 million in Q1 2024. The earnings per share (EPS) of $0.63 surpassed the analyst estimate of $0.49, indicating a robust performance despite economic headwinds.
The company's revenue for the quarter was $31.6 million, marginally above the estimated $30.93 million. The net interest margin was 1.83%, a slight decrease from 1.84% in the previous quarter. The return on average equity was 9.43%, and the return on average assets was 0.60%.
Key Financial Metrics
Washington Trust Bancorp Inc (WASH, Financial) maintained solid asset and credit quality metrics. The provision for credit losses was $500 thousand, down by $200 thousand from the previous quarter. Wealth management revenues increased by 4%, and mortgage banking revenues rose by 10% from Q1 2024.
Noninterest income totaled $16.7 million, down by $503 thousand from Q1 2024. However, excluding one-time items, noninterest income was up by $609 thousand, or 4%, from the preceding quarter. Noninterest expense declined by 1%, with reductions in salaries and benefits expense.
Income Statement Highlights
| Metric | Q2 2024 | Q1 2024 |
|---|---|---|
| Net Income | $10.8 million | $10.9 million |
| Earnings Per Share (EPS) | $0.63 | $0.64 |
| Net Interest Income | $31.6 million | $31.7 million |
| Noninterest Income | $16.7 million | $17.2 million |
| Noninterest Expense | $33.9 million | $34.4 million |
Balance Sheet and Cash Flow
As of June 30, 2024, total loans amounted to $5.6 billion, down by 1% from March 31, 2024. In-market deposits were $4.6 billion, also down by 1% from the previous quarter. The securities portfolio totaled $952 million, representing 13% of total assets.
Shareholders' equity was $471.0 million, up by $4.0 million from the previous quarter. The Board of Directors declared a quarterly dividend of $0.56 per share, paid on July 12, 2024.
Asset Quality and Capital Ratios
Nonaccrual loans were $30.5 million, or 0.54% of total loans, consistent with the previous quarter. The allowance for credit losses on loans was $42.4 million, or 0.75% of total loans. The total risk-based capital ratio was 11.81%, up from 11.62% in the previous quarter.
Conclusion
Washington Trust Bancorp Inc (WASH, Financial) demonstrated resilience in Q2 2024, with earnings surpassing analyst estimates and maintaining strong asset quality. The company's strategic focus on managing expenses and investing in growth initiatives positions it well for future performance. For more detailed insights, visit the full 8-K filing.
Explore the complete 8-K earnings release (here) from Washington Trust Bancorp Inc for further details.
