Washington Trust Bancorp, Inc. · NASDAQ:WASH
Washington Trust Bancorp — Investor Presentation (December 2024)
22 slides from Washington Trust Bancorp's investor presentation, Dec 12, 2024
Slide 1: December 2024 Follow-On Offering Investor Presentation
December 2024 Follow-On Offering Investor Presentation NASDAQ: WASH
Slide 2: Disclaimers: Forward-Looking Statements
Disclaimers 2 Forward-Looking Statements In this presentation, “we,” “our,” “us,” “Washington Trust” or the “Company” refers to Washington Trust Bancorp, Inc., and our consolidated subsidiaries, including The Washington Trust Company, of Westerly, unless the context indicates that we refer only to t
Slide 3: Disclaimers: Industry Information and Non-GAAP Measures
Disclaimers 3 Industry Information This presentation includes statistical and other industry and market data that Washington Trust obtained from government reports and other third-party sources. Our internal data, estimates, and forecasts are based on information obtained from government reports, tr
Slide 4: Offering Summary
4 Offering Summary Issuer Washington Trust Bancorp, Inc. Ticker / Listing WASH / NASDAQ Base Offering Size $55mm (100% Primary) Over-Allotment Option 15% (100% Primary) Expected Pricing Date December 11, 2024 Use of Proceeds We intend to use the net proceeds of this offering for general corporate pu
Slide 5: The Washington Trust Investment Story
1. A unique opportunity to invest in the Oldest Community Bank in the United States 2. Full suite of Commercial, Retail, and Wealth Management and Estate planning capabilities comparable to much larger banks 3. Strong diversification of revenue, with 34% from fees through 09/30/24 4. Sophisticated c
Slide 6: Washington Trust At-A-Glance
6 W A S H I N G T O N T R U S T A T - A - G L A N C E $7B Regional Financial Services Provider Net Interest Income Wealth Mgmt. Mortgage Banking Other Diverse Revenue Streams Market Area: RI, MA, CT o 28 bank branches o 5 wealth management offices o 7 mortgage loan offices o 4 commercial lending cen
Slide 7: Financial Goals and Strategies
7 F I N A N C I A L G O A L S A N D S T R A T E G I E S Strong, Diversified Franchise Core Bank o Commercial Banking o C&I focus expanding beyond RI borders o High quality CRE franchise (developer relationships) o Leading credit quality o Retail Banking o Strong branch franchise o Successful de novo
Slide 8: Loans: Strong Growth in Quality Loan Portfolio
8 L O A N S Strong Growth in Quality Loan Portfolio Total Loan Portfolio 2020 2021 2022 2023 9/30/2024 CRE C&I Residential Consumer $4.3 $5.6 $5.1 $5.5 $4.2 ($ in billions) CRE (38%) C&I (10%) Residential (46%) Consumer (6%) 64% Variable rate loans(1) 99% Residential lending in RI, MA, & CT(1) At De
Slide 9: Asset Quality: Historical Differentiator
9 A S S E T Q U A L I T Y Historical Differentiator for Washington Trust -0.2% 0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 1.2% 20 06 20 07 20 08 20 09 20 10 20 11 20 12 20 13 20 14 20 15 20 16 20 17 20 18 20 19 20 20 20 21 20 22 20 23 YT D 09 /2 02 4 Net Loan Charge-Offs / Average Loans Cumulative losses 2006 –
Slide 10: Largest Community Bank in Rhode Island
10 L A R G E S T Community Bank in Rhode Island (1) FDIC deposits as of June 30, 2024; most recent data available (1) At September 30, 2024. *East Greenwich branch opened in May 2021, **Cumberland branch opened in August 2022, ***Barrington branch opened in April 2023, ****Smithfield branch opened i
Slide 11: Deposits: Steady, Balanced Mix of Deposits
11 D E P O S I T S Steady, Balanced Mix of Deposits Total In-Market Deposit Portfolio 2020 2021 2022 2023 9/30/2024 Demand & NOW Money market & savings Time deposits $3.8 $4.7$4.5 $4.7 $4.8 ($ in billions) Time deposits (25%) MM & Savings (34%) Demand & Now (41%) At December 31st unless otherwise no
Slide 12: Revenue: Generating Diverse Income Sources
12 R E V E N U E Generating Diverse Income Sources Revenue Contributions From All Major Business Lines 2020 2021 2022 2023 YTD 09/2024 Net interest income Wealth Management Mortgage Banking All Other $226.9 66% 20% 6% 8% $218.6$228.8 $193.2 $145.6 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0%
Slide 13: Wealth Management: Sizeable Wealth Management Operation
o Full range of personalized financial services aimed at building customized solutions for clients o Key differentiators: o breadth of our holistic advisory services, which go beyond what many of our competitors can offer o credentials of our professionals o broad investment offerings not available
Slide 14: Mortgage Banking: Shifting Origination Mix
14 M O R T G A G E B A N K I N G Shifting Origination Mix $1,191 $720 $381 2022 2023 YTD 9/30/2024 Mortgage Originations (2) ($ millions) Originated for Sale Originated for Portfolio o Mortgage banking is historically a substantial source of noninterest income in the form of sale gains o Team strate
Slide 15: Profitability Performance Momentum
15 P R O F I T A B I L I T Y Performance Momentum o Net interest income & Net Interest Margin (1) - declining rates benefit liability- sensitive balance sheet o Wealth management - benefiting from improved equity markets and client fee restructure o Mortgage banking fees - return to saleable origina
Slide 16: Potential Balance Sheet Optimization
Potential Balance Sheet Optimization Would Further Improve Profitability Profile • We are evaluating a potential repositioning of low-yielding available- for-sale securities and loans • The goal of a potential loan and securities repositioning is to further improve profitability, decrease leverage,
Slide 17: Profitability Metrics: Historical Outperformance
17 P R O F I T A B I L I T Y M E T R I C S Historical Outperformance Has Been Challenged by Interest Rate Environment 0.00% 0.50% 1.00% 1.50% 2.00% 20 06 20 07 20 08 20 09 20 10 20 11 20 12 20 13 20 14 20 15 20 16 20 17 20 18 20 19 20 20 20 21 20 22 20 23 YT D 09 /2 02 4 ROA $0 $15,000 $30,000 $45,0
Slide 18: Capital Position / Balance Sheet: Capital Supports Dividend
18 C A P I T A L P O S I T I O N / B A L A N C E S H E E T Capital Supports Dividend 0.00% 4.00% 8.00% 12.00% 16.00% 20.00% 20 06 20 07 20 08 20 09 20 10 20 11 20 12 20 13 20 14 20 15 20 16 20 17 20 18 20 19 20 20 20 21 20 22 20 23 9/ 30 /2 02 4 Total Risk-based Capital 0.00% 2.00% 4.00% 6.00% 8.00%
Slide 19: Appendix
19 Appendix
Slide 20: Loans: Commercial Lending Portfolio
L O A N S Commercial Lending Portfolio 20 $540,792 $428,217 $337,950 $296,545 $203,972 $202,854 $29,231 $62,530 Multi-Family (26%) Retail (20%) Industrial & Warehouse (16%) Office (14%) Hospitality (10%) Healthcare facility (10%) Mixed Use (1%) Other (3%) % of CRE Portfolio by Segment as of 9/30/24
Slide 21: Non-Owner Occupied Commercial Real Estate Office
$ thousands; at September 30, 2024 (1) Approximately 68% of the total commercial real estate office balance of $297 million is secured by income producing properties located in suburban areas. Additionally, approximately 40% of the total commercial real estate office balance is expected to mature be
Slide 22: Non-GAAP Financial Measures
22 Non-GAAP Financial Measures Washington Trusts' management uses these non-GAAP measures to evaluate Washington Trust's performance, profitability and financial strength, as they provide additional insight into operational results, facilitate comparability across reporting periods, and offer useful
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