Washington Trust Bancorp Inc (WASH) Q1 2024 Earnings Call Transcript Highlights: Key Financial ...
Net Income: $10.9 million
Earnings Per Share (EPS): $0.64 per diluted share
Net Interest Income: $31.7 million, down $1 million or 3%
Interest Margin: 1.84%, down 4 basis points
Non-Interest Income: $17.2 million, up $3.9 million or 29% from Q4
Wealth Management Revenues: $9.3 million, up $457,000
Mortgage Banking Revenues: $2.5 million, up $952,000
Salaries Expense: Increased by $3.3 million, or 18%
Effective Tax Rate: 20.6% for Q1, estimated 21% for full-year 2024
Total Loans: Up by $31 million, or 1%
Commercial Loans: Increased by $60 million
Residential Loans: Declined by $19 million
Asset Quality: Improved; Non-accruing loans were 54 basis points on total loans
Provision for Credit Losses: Charge of $700,000
Net Charge-offs: $52,000 in the quarter
Release Date: April 22, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Can you share with us, was the $2.1 million litigation settlement related to the wealth management business or something else? A: Edward Handy, Chairman and CEO of Washington Trust Bancorp, confirmed that the settlement was related to the wealth management business.
Q: Is the litigation surrounding those people leaving fully resolved with this settlement? A: Edward Handy confirmed that the settlement fully resolved the litigation.
Q: Can you share your thoughts on the outlook for the net interest margin? A: Ronald Ohsberg, CFO of Washington Trust Bancorp, mentioned that the forecast includes an expectation of a net interest margin of 1.80% for the second quarter, with some uncertainty around Federal Reserve actions influencing future projections.
Q: What are the expectations and means for the new deposit strategy you mentioned? A: Edward Handy explained that the strategy includes implementing new technology for automated account opening and a referral program, aiming to enhance deposit growth through cultural and technological changes.
Q: How do you manage loan growth without turning away quality customers? A: Edward Handy discussed maintaining a balance by selling participation interests in existing loans and allowing non-core loans to pay off, focusing on supporting customers who need the bank the most while managing overall loan growth.
Q: What is the outlook for the provision given the improvement in non-performing assets? A: Ronald Ohsberg suggested maintaining the provision for credit losses at around $1 million per quarter, based on current assessments and the bank's conservative approach to managing credit risk.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.