On October 23, 2023, Washington Trust Bancorp Inc (WASH, Financial) announced its third-quarter earnings for 2023. The company reported a net income of $11.2 million, or $0.65 per diluted share, a slight decrease from the second quarter's net income of $11.3 million, or $0.66 per diluted share.
Financial Highlights
Washington Trust's Q3 performance demonstrated the company's resilience and ability to manage through challenging operating conditions. The company's net interest income totaled $33.8 million in Q3, up by $251 thousand or 1% from the preceding quarter. The net interest margin was 1.97% in the third quarter, compared to 2.03% in the preceding quarter, reflecting the challenging interest rate environment.
Noninterest income totaled $15.2 million in the third quarter, up by $901 thousand or 6% from the preceding quarter, reflecting increases in loan-related derivative income and mortgage banking revenues. Total loans amounted to $5.6 billion, up by $230 million or 4% from the end of the preceding quarter. Total loans were up by $762 million or 16% from a year ago.
Asset Quality and Capital
Nonaccrual loans were $33.7 million, or 0.60% of total loans, at the end of Q3 2023, compared to $10.4 million, or 0.19% of total loans, at the end of Q2 2023. The allowance for credit losses on loans amounted to $40.2 million, or 0.72% of total loans, at the end of Q3 2023, compared to $39.3 million, or 0.73% of total loans, at the end of Q2 2023.
Washington Trust's total shareholders' equity was $431.4 million at the end of Q3 2023, down by $27.8 million or 6% from the end of Q2 2023. The company declared a quarterly dividend of 56 cents per share for the quarter ended September 30, 2023.
Outlook
Despite the slight decrease in net income, Washington Trust Bancorp Inc (WASH, Financial) continues to demonstrate financial resilience amidst challenging operating conditions. The company's increase in net interest income and total loans, coupled with its ability to manage credit losses, positions it well for future growth.
