Washington Trust Bancorp Reports Strategic Loss Amid Repositioning

Washington Trust Bancorp ( (WASH) ) has released its Q4 earnings. Here is a breakdown of the information Washington Trust Bancorp presented to its investors.

Washington Trust Bancorp, Inc., the oldest community bank in the United States, is a premier financial services company offering commercial banking, mortgage banking, personal banking, and wealth management services, primarily in the Northeastern U.S.

In its latest earnings report, Washington Trust Bancorp announced a net loss of $60.8 million for the fourth quarter of 2024, influenced significantly by a strategic balance sheet repositioning. Despite the losses, the company emphasized that these actions are designed to enhance future revenue streams and support growth.

The company undertook a significant balance sheet restructuring, selling debt securities and residential mortgage loans, which resulted in substantial realized losses. However, these transactions are part of a broader strategy to invest in higher-yielding assets and reduce wholesale funding balances. The equity offering completed in December 2024 provided a capital boost of approximately $70.5 million.

Key financial metrics showed a mixed performance, with a slight improvement in the net interest margin to 1.95% in the fourth quarter and an increase in wealth management revenues. However, there was a decrease in total loans due to the reclassification of residential mortgages for sale. In-market deposits saw a modest increase, reflecting stable customer confidence.

Looking ahead, Washington Trust’s management is optimistic about the strategic repositioning’s potential to bolster financial strength and shareholder value. The company expects that these adjustments will provide a solid foundation for pursuing future growth opportunities and enhancing service offerings to its clients and communities.