Curious about Washington Trust Bancorp net worth and financial performance? In this guide, Ando Money dives into the bank’s assets, equity, and key financial factors driving its growth in 2024.
Quick Facts
| FACT | DETAIL |
|---|---|
| Name | Washington Trust Bancorp |
| Full Name | Washington Trust Bancorp, Inc. |
| Traded as | NASDAQ: WASH |
| ISIN | N/A |
| Founded | 1902 |
| Founders | J. Grier Long, Martin B. Connelly, R.L. Webster |
| Country/Territory | United States |
| Headquarters | 717 W Sprague Ave, Spokane, Washington, U.S. |
| Chief Executive Officer | Peter Q. Stanton |
| Number of Employees | 1,021 |
| Market Cap | $0.53 Billion (as of September 2024) |
| Total Assets | $7.18 Billion |
| Total Equity | $471 Million |
| Revenue | N/A |
| Net Income | $10.8 Million (Q2 2024) |
What is the Net Worth/Market Cap of Washington Trust Bancorp in 2024?
As of September 2024, Washington Trust Bancorp holds a market cap of $0.53 billion. This positions the bank solidly within its peer group in the financial sector.
Despite its relatively smaller market cap compared to some global giants, Washington Trust continues to demonstrate stable growth and profitability.
The bank’s market cap reflects its robust financial standing, supported by its strong asset base and solid equity.
When we compare Washington Trust with other banks in the industry, it is evident that it maintains a commendable position.
However, larger institutions with international presence still hold significantly higher valuations. To explore more about the largest banks globally, you can read about the top banks in the world.
Other banks in comparison:
- JPMorgan Chase
- Bank of America
- Wells Fargo
- Citigroup
- U.S. Bancorp
- KeyCorp
- M&T Bank
- PNC Financial Services
- Fifth Third Bancorp
Financial Performance Overview
Key Factors Contributing to Financial Growth
Washington Trust Bancorp’s financial growth is driven by several critical factors.
Primarily, its interest income forms a significant portion of its revenue, stemming from its expansive loan portfolio, which includes commercial real estate loans, residential loans, and consumer loans.
In the second quarter of 2024, total loans stood at $5.6 billion, showing a slight decline of 1%.
The bank’s non-interest income, which includes wealth management and mortgage banking, also plays a vital role in diversifying its income sources.
Wealth management revenues reached $9.7 million in the second quarter of 2024, marking a 4% increase, while mortgage banking revenues rose by 10% to $2.8 million.
The bank’s ability to balance these income streams helps ensure consistent growth, even amid fluctuating market conditions. In terms of managing expenses, non-interest expenses declined by 1%, with reductions in salaries and employee benefits.
This careful expense management, along with revenue growth, has allowed Washington Trust to maintain a net income of $10.8 million for Q2 2024.
Breakdown of Assets and Liabilities
Washington Trust Bancorp has consistently maintained a strong asset base, with total assets of $7.18 billion as of June 2024.
The bulk of these assets include its loan portfolio, which is carefully managed to mitigate risks and ensure steady returns. On the liability side, deposits play a crucial role, totaling $5.0 billion by the end of the second quarter.
The bank has also increased its reliance on Federal Home Loan Bank (FHLB) advances, which grew by 25% to $1.6 billion, providing additional liquidity.
These assets and liabilities work together to shape the bank’s financial performance. The loan-to-deposit ratio of 112.8% reflects Washington Trust’s effective use of its deposit base to fuel lending activities, contributing to its interest income.
Shareholders’ Equity and Dividends: Financial Stability
Washington Trust Bancorp’s shareholders’ equity increased to $471 million as of June 2024, marking a 1% rise from the previous quarter.
This steady increase in equity is a testament to the bank’s sound financial management and profitability. In addition, the bank declared a quarterly dividend of $0.56 per share, maintaining its commitment to rewarding shareholders.
These dividends not only reflect the bank’s financial health but also boost investor confidence. Washington Trust’s return on equity stands at 9.43%, which further indicates strong profitability relative to the shareholders’ investment.
Loan and Deposit Performance
The performance of Washington Trust Bancorp’s loan and deposit portfolios is a key indicator of its financial health.
Although total loans saw a minor decrease of 1% to $5.6 billion, the bank’s loan portfolio remains diverse, covering sectors like commercial real estate, residential mortgages, and consumer loans.
On the other hand, in-market deposits decreased by 1% to $4.6 billion. Despite this, the bank managed to maintain a healthy loan-to-deposit ratio, ensuring that its deposit base is efficiently utilized to generate income through loans.
Credit Quality and Risk Management
Maintaining a strong credit quality has always been a focus for Washington Trust. As of June 2024, the bank’s nonaccrual loans amounted to $30.5 million, or 0.54% of total loans.
The allowance for credit losses (ACL) on loans increased slightly to $42.4 million, reflecting the bank’s cautious approach to managing potential credit risks.
Provisions for credit losses in the second quarter of 2024 stood at $500,000, down from the previous quarter, showcasing improved asset quality.
To ensure long-term stability, Washington Trust Bancorp also keeps its net charge-offs low, amounting to just $27,000 in the second quarter, down from $52,000 in Q1.
This disciplined approach to credit risk management has allowed the bank to navigate challenging market conditions while maintaining profitability.
Capital Adequacy and Regulatory Compliance
Capital adequacy is another vital factor contributing to Washington Trust’s strong financial position. The bank’s total risk-based capital ratio stood at 11.81% as of June 2024, well above regulatory minimums.
This robust capital buffer ensures that the bank can withstand market shocks and continue operations without significant risk to its financial stability.
Regulatory compliance is key for any financial institution, and Washington Trust adheres strictly to the guidelines set by the Federal Reserve and SEC.
By maintaining adequate capital reserves and adhering to stringent regulatory requirements, the bank ensures its long-term financial health and operational integrity.
FAQs about Washington Trust Bancorp
How was the Washington Trust Bancorp founded?
It was founded in 1902 by J. Grier Long, Martin B. Connelly, and R.L. Webster.
Who is the CEO of the bank?
The CEO is Peter Q. Stanton, serving as the Executive Chairman.
What are the main services provided by the bank?
It offers:
- Personal banking
- Commercial banking
- Wealth management
- Home loans
- Private banking
- Trust services
- Investment services
Where is the Washington Trust Bancorp headquartered?
It is headquartered at 717 W Sprague Ave, Spokane, Washington, U.S..
How many employees does the bank have?
It has 1,021 employees as of 2024.
How does the bank generate revenue?
It generates revenue through:
- Interest income from loans
- Non-interest income from wealth management and advisory fees
- Investment services
Conclusion
In summary, Washington Trust Bancorp’s financial performance in 2024 demonstrates strength and resilience.
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