Washington Trust Bancorp’s fourth quarter was marked by stronger-than-expected performance, highlighted by expanding profit margins and notable growth in both deposit and wealth management revenues. Management attributed the outperformance to a more favorable funding mix, disciplined deposit rate management, and targeted investments in key business lines. CEO Ned Handy emphasized, “The quarter’s performance was driven by margin expansion, continued in-market deposit growth and increased revenues from wealth management.” Additionally, the company cited improved asset quality metrics and a normalized provision for credit losses as contributing factors.

Is now the time to buy WASH? Find out in our full research report (it’s free for active Edge members).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Washington Trust Bancorp’s Q4 Earnings Call

• Mark Fitzgibbon (Piper Sandler) asked about the sustainability of net interest margins. CFO Ron Ohsberg detailed expected incremental benefits from swap terminations and projected organic expansion if rates hold steady.
• Mark Fitzgibbon (Piper Sandler) inquired about the bank’s lower loan loss reserve ratio relative to peers. Chief Risk Officer Bill Wray explained it reflects portfolio composition and historical loss experience, with ongoing conservatism as market conditions evolve.
• Mark Fitzgibbon (Piper Sandler) questioned whether management is pursuing M&A in wealth management. CEO Ned Handy clarified that current focus is on organic growth, particularly in institutional banking, though opportunistic tuck-in acquisitions remain possible.
• Damon Del Monte (KBW) asked about expense trajectory and variability. Ohsberg broke out expected increases in salaries, benefits, and other expenses driven by merit raises, new hires, and the Pawtucket branch opening.
• Laura Havener Hunsicker (Seaport Research Partners) sought details on the new commercial banking team. Handy confirmed a four-person team with deep Northeast experience and outlined early expectations for C&I loan growth.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will focus on (1) progress in scaling the new commercial and institutional banking teams and their impact on C&I loan growth, (2) evidence of continued net interest margin expansion as funding mix shifts and swap benefits materialize, and (3) execution of the Pawtucket branch opening and related retail strategy initiatives. Developments in credit quality and the pace of wealth management client acquisitions will also be key to watch.

Washington Trust Bancorp currently trades at $35.69, up from $30.19 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).

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