WESTERLY – Washington Trust Bancorp Inc., the parent company of The Washington Trust Co., on Monday reported a net income of $10.9 million in the first quarter of 2024, down 14.8% from the $12.8 million profit it posted in the same period a year ago because of a higher interest expense on deposits.
Earnings per diluted share were 64 cents, down from 76 cents in the first quarter of 2023.
Total revenue for the bank – net interest income and noninterest income – amounted to $102.4 million for the first quarter, up 24% from the $82 million brought in during the same quarter a year ago.
Revenue increased mostly on interest and fee income on loans, which increased $15.9 million
– or 26%
– year over year to $75.6 million in the first quarter. Also, the bank saw its mortgage banking revenue double to $2.5 million from $1.25 million in the same period a year ago.
At the same time, however, total interest expense jumped 70% year over year to $53.6 million from $31.6 million.
"Washington Trust's first quarter performance reflects the importance of our diversified business model, as we were able to generate solid noninterest income while faced with continued margin pressure associated with higher funding costs," said Edward O. Handy III, Washington Trust CEO and chairman.
Wealth management revenues increased 7.5% year over from $8.7 million reported in the first quarter of 2023 to $9.3 million posted in the first three months of 2024.
Net interest margin – a key metric – was 1.84%, down from 2.47% reported a year ago.
In-market deposits increased 0.3% year over year to $4.67 billion compared with $4.65 billion in the first quarter of 2023.
Total deposits amounted to $5.3 billion in the first quarter, a slight increase from the $5.2 million reported a year prior.
Noninterest income at Washington Trust in the quarter was $17.2 million, an increase from $13.3 million reported in the first quarter of 2023.
Noninterest expense totaled $34.3 for the first quarter of 2024, up slightly year over year from $33.6 million in the first quarter of 2023.
Total loans amounted to $5.7 billion, up 8.7% year over year.
Meanwhile, Washington Trust's asset quality showed signs of stabilizing.
The percentage of nonaccrual loans – typically those more than 90 days overdue – was 0.54% in the first quarter, more than double the 0.21% ratio a year ago but down from 0.79% in the fourth quarter of 2023.
"We remain focused on managing the balance sheet, maintaining credit quality, and prudently overseeing expenses to ensure we are adequately positioned to meet the challenges ahead," Handy said.
