Washington Trust Bancorp Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Washington Trust Bancorp Inc. has submitted its 2023 10-K filing detailing its financial performance and operations.</b>

AI Summary

WASHINGTON TRUST BANCORP INC (WASH) filed a Annual Report (10-K) with the SEC on February 26, 2024. Washington Trust Bancorp Inc. filed its annual report for the fiscal year ending December 31, 2023. The company is classified under Standard Industrial Classification code 6022 for Commercial Banks. The filing was made on February 26, 2024, with the SEC. The company's principal business address is 23 Broad St, Westerly, RI 02891. The filing covers the period from January 1, 2023, to December 31, 2023.

Why It Matters

For investors and stakeholders tracking WASHINGTON TRUST BANCORP INC, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Washington Trust Bancorp's financial health, operational performance, and strategic direction for the fiscal year 2023, crucial for investors and stakeholders to assess the company's standing. As a commercial bank, the information within this filing is vital for understanding its regulatory compliance, risk management practices, and market position within the banking sector.

Risk Assessment

Risk Level: medium — WASHINGTON TRUST BANCORP INC shows moderate risk based on this filing. The company operates in the highly regulated banking industry, which presents inherent risks related to economic downturns, interest rate fluctuations, and compliance requirements, as indicated by its SIC code for Commercial Banks.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to understand the bank's performance and potential challenges in the current economic environment.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-02-26 — Filing Date (Date of submission)
• 157 — Public Document Count (Number of documents in the filing)
• 001-32991 — SEC File Number (SEC registration number)

Key Players & Entities

• WASHINGTON TRUST BANCORP INC (company) — Filer name
• WASH (company) — Ticker symbol
• 0000737468 (company) — Central Index Key
• 6022 (company) — Standard Industrial Classification
• RI (company) — State of incorporation
• 2024-02-26 (date) — Filing date
• 2023-12-31 (date) — Fiscal year end
• 4013481200 (company) — Business phone number

FAQ

Risk Factors

• Regulatory Environment [medium — regulatory]: The company is subject to extensive regulation by federal and state agencies, which can impact its operations and profitability.
• Interest Rate Risk [medium — financial]: Changes in interest rates can affect the company's net interest income and the market value of its investment portfolio.
• Economic Conditions [medium — market]: Deterioration in general economic conditions, particularly in its primary market areas, could adversely affect the company's financial performance.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-02-26: Filing Date — Date the 10-K was officially submitted to the SEC.

Key Financial Figures

• $26.81 — 0,350 based on a closing sales price of $26.81 per share as reported on the NASDAQ Sto
• $21,388,241 — the NASDAQ Stock Market, which includes $21,388,241 held by The Washington Trust Company, o
• $7.2 b — 3, Washington Trust had total assets of $7.2 billion, total deposits of $5.3 billion a
• $5.3 billion — sets of $7.2 billion, total deposits of $5.3 billion and total shareholders' equity of $472.
• $472.7 million — llion and total shareholders' equity of $472.7 million. Lending Activities Washington Trust
• $5.6 b — rust's total loan portfolio amounted to $5.6 billion, or 78% of total assets, at Decem
• $100 million — n loans or loan commitments of at least $100 million that are shared by three or more banks.
• $1.0 b — stment securities portfolio amounted to $1.0 billion, or 14% of total assets, at Decem
• $1.2 billion — ank had advances payable to the FHLB of $1.2 billion. As of December 31, 2023, the Bank had
• $40.0 million — mber 31, 2023, the Bank had access to a $40.0 million unused line of credit with the FHLB. Ad
• $65.0 million — andby letter of credit with the FHLB of $65.0 million at December 31, 2023. This standby lett
• $1.1 billion — ble borrowing capacity with the FHLB of $1.1 billion at December 31, 2023. The Bank pledges
• $6.6 billion — 31, 2023, wealth management AUA totaled $6.6 billion. These assets are not included in the C

Filing Documents

• wash-20231231.htm (10-K) — 4389KB
• exhibit23110k2023q4.htm (EX-23.1) — 3KB
• exhibit31110k2023q4.htm (EX-31.1) — 12KB
• exhibit31210k2023q4.htm (EX-31.2) — 12KB
• exhibit32110k2023q4.htm (EX-32.1) — 9KB
• exhibit9710k2024q4.htm (EX-97) — 23KB
• wash-20231231_g1.jpg (GRAPHIC) — 112KB
• wash-20231231_g2.jpg (GRAPHIC) — 65KB
• 0000737468-24-000012.txt (&nbsp;) — 22596KB
• wash-20231231.xsd (EX-101.SCH) — 104KB
• wash-20231231_cal.xml (EX-101.CAL) — 109KB
• wash-20231231_def.xml (EX-101.DEF) — 743KB
• wash-20231231_lab.xml (EX-101.LAB) — 1469KB
• wash-20231231_pre.xml (EX-101.PRE) — 1095KB
• wash-20231231_htm.xml (XML) — 4685KB

Forward-Looking Statements

Forward-Looking Statements 5 Part I Item 1

Business

Business 6 Item 1A

Risk Factors

Risk Factors 17 Item 1B Unresolved Staff Comments 28 Item 1C Cybersecurity 28 Item 2

Properties

Properties 30 Item 3

Legal Proceedings

Legal Proceedings 30 Item 4 Mine Safety Disclosures 30 Part II Item 5 Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 30 Item 6 Reserved 31 Item 7

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 32 Item 7A

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 64 Item 8

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 65 Item 9 Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 135 Item 9A

Controls and Procedures

Controls and Procedures 135 Item 9B Other Information 135 Item 9C Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 135 Part III Item 10 Directors, Executive Officers and Corporate Governance 136 Item 11

Executive Compensation

Executive Compensation 136 Item 12

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 136 Item 13 Certain Relationships and Related Transactions, and Director Independence 136 Item 14 Principal Accounting Fees and Services 136 Part IV Item 15 Exhibits, Financial Statement Schedules 137 Item 16 Form 10-K Summary 141

Signatures

Signatures 142 -2- Glossary of Acronyms and Terms The following is a list of acronyms and terms that are used throughout this Annual Report on Form 10-K: 2003 Stock Incentive Plan Washington Trust Bancorp, Inc.'s 2003 Stock Incentive Plan 2013 Stock Option and Incentive Plan Washington Trust Bancorp, Inc.'s 2013 Stock Option and Incentive Plan 2022 Long Term Incentive Plan Washington Trust Bancorp, Inc.'s 2022 Long Term Incentive Plan 2021 Repurchase Program Washington Trust Bancorp, Inc.'s Stock Repurchase Program adopted on November 10, 2021 2023 Repurchase Program Washington Trust Bancorp, Inc.'s Stock Repurchase Program commencing January 1, 2023 2024 Repurchase Program Washington Trust Bancorp, Inc.'s Stock Repurchase Program commencing January 1, 2024 ACL Allowance for credit losses Advisers Act Investment Advisers Act of 1940 ALCO Asset/Liability Committee AOCI Accumulated other comprehensive income AOCL Accumulated other comprehensive loss ASC Accounting Standards Codification ASU Accounting Standards Update ATM Automated teller machine AUA Assets under administration Bancorp Washington Trust Bancorp, Inc. Bank The Washington Trust Company, of Westerly BHCA Bank Holding Company Act of 1956, as amended BOLI Bank-owned life insurance BSA Bank Secrecy Act C&I Commercial and industrial CDARS Certificate of Deposit Account Registry Service CFPB Consumer Financial Protection Bureau Code Internal Revenue Code of 1986, as amended Corporation The Bancorp and its subsidiaries COSO Committee of Sponsoring Organizations of the Treadway Commission CRA Community Reinvestment Act CRE Commercial real estate DCF Discounted cash flow DDM Demand Deposit Marketplace Dodd-Frank Act Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, as amended DOJ U.S. Department of Justice Economic Growth Act Economic Growth, Regulatory Relief, and Consumer Protection Act EPS Earnings per common share ERISA Employee Retirement Incom

Forward-Looking Statements

Forward-Looking Statements This report contains statements that are "forward-looking statements." We may also make forward-looking statements in other documents we file with the SEC, in our annual reports to shareholders, in press releases and other written materials, and in oral statements made by our officers, directors or employees. You can identify forward-looking statements by the use of the words "believe," "expect," "anticipate," "intend," "estimate," "assume," "outlook," "will," "should," and other expressions that predict or indicate future events and trends and which do not relate to historical matters. You should not rely on forward-looking statements, because they involve known and unknown risks, uncertainties and other factors, some of which are beyond our control. These risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different than the anticipated future results, performance or achievements expressed or implied by the forward-looking statements. Some of the factors that might cause these differences include the following: changes in general business and economic conditions on a national basis and in the local markets in which we operate; changes in customer behavior due to political, business and economic conditions, including inflation and concerns about liquidity; interest rate changes or volatility, as well as changes in the balance and mix of loans and deposits; changes in loan demand and collectability; the possibility that future credit losses are higher than currently expected due to changes in economic assumptions or adverse economic developments; ongoing volatility in national and international financial markets; reductions in the market value or outflows of wealth management AUA; decreases in the value of securities and other assets; increases in defaults and charge-off rates; changes in the size and nature of our competition; changes in legislation or regulation

Business

ITEM 1. Business. Washington Trust Bancorp, Inc. The Bancorp, a publicly-owned registered bank holding company that has elected to be a financial holding company, was organized in 1984 under the laws of the state of Rhode Island. The Bancorp's common stock trades on the NASDAQ Stock Market under the symbol WASH. The Bancorp owns all of the outstanding common stock of the Bank, a Rhode Island chartered financial institution founded in 1800. The Bancorp was formed in 1984 under a plan of reorganization in which outstanding common shares of the Bank were exchanged for common shares of the Bancorp. See additional information under the caption "Subsidiaries." Washington Trust offers a full range of financial services, including commercial, residential and consumer lending, retail and commercial deposit products, and wealth management and trust services. The accounting and reporting policies of Washington Trust conform to GAAP and to general practices of the banking industry. At December 31, 2023, Washington Trust had total assets of $7.2 billion, total deposits of $5.3 billion and total shareholders' equity of $472.7 million. Lending Activities Washington Trust's total loan portfolio amounted to $5.6 billion, or 78% of total assets, at December 31, 2023. The Corporation classifies loans as commercial, residential real estate or consumer. The Corporation's lending activities are conducted primarily in southern New England and, to a lesser extent, other states. Washington Trust offers a variety of commercial and retail lending products. Interest rates charged on loans may be fixed or variable and vary with the degree of risk, loan term, underwriting and servicing costs, loan amount and the extent of other banking relationships maintained with customers. Rates are further subject to competitive pressures, the current interest rate environment, availability of funds and government regulations. Management evaluates the appropriateness of underwriting standards in

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View this 10-K filing on SEC EDGAR