WESTERLY, R.I. - Washington Trust (NASDAQ:WASH) Bancorp, Inc. (NASDAQ:WASH), the parent company of The Washington Trust Company, has announced the commencement of an underwritten public offering of $55 million of its common stock. The offering comes as the $622 million market cap company trades at a P/E ratio of 13.7. In addition, the Corporation may offer the underwriter a 30-day option to purchase up to an additional 15% of the shares sold in the offering. BofA Securities is the sole book-running manager for this offering. According to InvestingPro analysis, the stock currently appears fairly valued based on comprehensive Fair Value calculations.
The Corporation aims to utilize the net proceeds for general corporate purposes to bolster organic growth and capital generation. This includes investments in the Bank, optimizing the Bank's balance sheet through the sale of lower-yielding loans and available for sale debt securities, repaying wholesale funding balances, and acquiring debt securities with current market yields. The bank has shown strong momentum recently, with InvestingPro data revealing a remarkable 47% price return over the past six months. Notably, the company maintains a significant 6.1% dividend yield and has increased its dividend for 13 consecutive years.
The offering is made under a shelf registration statement filed with the Securities and Exchange Commission (SEC) on September 8, 2023, and declared effective on September 29, 2023. Details about the offering are available in a preliminary prospectus supplement filed with the SEC. Potential investors are advised to read these documents, which contain important information, including risk factors.
This press release contains forward-looking statements that are subject to risks and uncertainties, and actual results may vary materially from those suggested by such statements. Factors that could influence the Corporation's results are detailed in its SEC filings, including its Annual Report's "Risk Factors" section for the year ended December 31, 2023.
Washington Trust Bancorp, Inc., with $7.1 billion in assets as of September 30, 2024, is the oldest community bank in the nation and the largest state-chartered bank headquartered in Rhode Island. The Bank is well-regarded in the Northeast as a premier financial services company, offering a broad spectrum of banking, mortgage banking, personal banking, and wealth management services. InvestingPro subscribers have access to additional insights, including 6 more ProTips and a comprehensive Pro Research Report that provides deep-dive analysis of the company's financial health, which currently rates as 'Fair' based on multiple financial metrics.
The information provided in this article is based on a press release statement from Washington Trust Bancorp, Inc.
In other recent news, Washington Trust has seen steady growth in its third-quarter earnings for 2024. The company reported a net income of $11 million, or $0.64 per share, and a modest rise in net interest income. Assets under administration also grew by 4% to $7.1 billion. Despite a 2% decrease in total loans, the bank's commercial and mortgage loan pipelines, valued at $90 million and $107 million respectively, suggest potential for future growth.
In the same vein, Washington Trust has appointed Michelle Kile as Executive Vice President and Chief Retail Banking Officer, a move that is expected to enhance retail sales and customer service operations. Kile's extensive experience in the retail banking sector is anticipated to bolster the bank's focus on branch transformation and digital enhancements.
Recent developments also include a 3% rise in wealth management revenues to $10 million. However, non-interest income saw a slight decrease of 2% to $16.3 million. Looking ahead, the management of Washington Trust expects stable margins and growth in the coming year, with a strategic focus on underwriting and property resolutions.
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