Washington Trust Bancorp Q2 2025 Earnings Call Transcript

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Provided by Quartr
July 22, 2025

Key Takeaways

  • Positive Sentiment: Washington Trust reported Q2 net income of $13.2 million ($0.68/share), up from $12.2 million ($0.63/share), with net interest income rising 2% and the NIM expanding seven basis points to 2.36%.
  • Positive Sentiment: Wealth management revenues climbed 2% to $10.1 million on higher transaction fees and AUA balances grew 5% to $7.2 billion, while mortgage banking revenue surged 32% to $3 million and the firm finalized its core wealth system conversion.
  • Positive Sentiment: Total loans increased 1% (with commercial loans up 2%) and end-market deposits rose 1% linked quarter (9% YoY), backed by a $105 million commercial loan pipeline supporting continued low-single-digit growth.
  • Negative Sentiment: Credit metrics remain solid at 51 bps nonaccruals and 157% NPL coverage, but there is a specific $11 million reserve for a bankrupt broadband contractor and a 50% vacant office loan still awaiting resolution.
  • Neutral Sentiment: Funding shifted with $151 million of FHLB borrowings replacing higher-cost brokered CDs, the spot NIM reached 2.38%, and management chose to preserve capital rather than restart share buybacks.
AI Generated. May Contain Errors.
Earnings Conference Call
Washington Trust Bancorp Q2 2025
00:00 / 00:00

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Operator

Hello, everyone, and thank you for your patience. Today's call will begin short Good morning, and welcome to Washington Trust Bancorp, Inc. Conference Call. My name is Lydia, and I'll be your operator today. Today's call is being recorded.

Operator

I'd like to turn the call over to Sharon Walsh, Senior Vice President and Director of Marketing and Corporate Communications. Ms. Walsh, over to you.

Sharon Walsh
Sharon Walsh
SVP, Director - Marketing Strategy & Planning at Washington Trust Bancorp

Thank you, Lydia. Good morning, and welcome to Washington Trust Bancorp, Inc. Conference call for the second quarter of twenty twenty five. Joining us this morning are members of the Washington Trust executive team Ned Handy, Chairman and Chief Executive Officer Mary Noones, President and Chief Operating Officer Ron Osberg, Senior Executive Vice President, Chief Financial Officer and Treasurer Bill Ray, Senior Executive Vice President and Chief Risk Officer. Please note that today's presentation may contain forward looking statements and our actual results could differ materially from what is discussed on today's call.

Sharon Walsh
Sharon Walsh
SVP, Director - Marketing Strategy & Planning at Washington Trust Bancorp

Our complete Safe Harbor statement is contained in our earnings release, which was issued yesterday as well as other documents that are filed with the SEC. All of these materials and other public filings are available on our Investor Relations website at ir. Washtrust dot com. Washington Trust trades on NASDAQ under the symbol WASH. I'm now pleased to introduce you to today's host, Washington Trust Chairman and Chief Executive Officer, Ned Handy. Ned?

Edward Handy
Edward Handy
Chairman & CEO at Washington Trust Bancorp

Thank you, Sharon. Good morning and thank you for joining our second quarter conference call. We respect and appreciate your time and your interest in Washington Trust. I'll briefly comment on the quarter and then Ron will provide more detail on the financial results. After our prepared remarks, Mary and Bill will join us for the Q and A session.

Edward Handy
Edward Handy
Chairman & CEO at Washington Trust Bancorp

Washington Trust second quarter results reflect our diversified business model performing positively. We realized growth in net interest income, wealth management revenue and mortgage banking revenue and we continue to build capital. This was a solid quarter with loan and deposit growth on target. This quarter while we continue to focus on deposit generation, we enhanced our wealth management team with the addition of a new client services manager and business development additions to our wealth advisory and private clients teams. This added expertise will be instrumental as we continue to grow and evolve to meet the needs of our clients and communities and continue to provide the highly personalized consultative experience that has defined our firm for generations.

Edward Handy
Edward Handy
Chairman & CEO at Washington Trust Bancorp

Also in the quarter, we finalized the conversion of our core wealth management system, which will ensure enhanced customer experience. The company remains committed to providing exceptional full service banking, mortgage and wealth services to our customers and is focused on continuing to be a financial partner that provides solutions and resources that customers need for all life stages and the unique opportunities and challenges that come with those milestones. I'll now turn the call over to Ron for some additional details on the quarter. We'll then be glad to address any of your questions. Ron?

Damon Delmonte
Managing Director at Keefe, Bruyette & Woods (KBW)

Great.

Ronald Ohsberg
Ronald Ohsberg
SEVP, CFO & Treasurer at Washington Trust Bancorp

Thank you, Ned, and good morning, everyone. The second quarter, we reported net income of $13,200,000 or $0.68 per share compared to $12,200,000 and $0.63 per share last quarter. As previously disclosed, there were two infrequent items included in first quarter results, a pension termination charge and a sale leaseback net gain. Excluding these items, net income increased by $1,500,000 or $07 per share. Net interest income was $37,200,000 up by $763,000 or 2% on a linked quarter basis.

Ronald Ohsberg
Ronald Ohsberg
SEVP, CFO & Treasurer at Washington Trust Bancorp

The margin was $2.36 up by seven basis points. Non interest income totaled $17,100,000 in Q2. Excluding Q1 sale leaseback net gain of $7,000,000 adjusted non interest income was up by $1,400,000 or 9%. Wealth Management revenues were $10,100,000 up by $229,000 or 2% reflecting an increase in transaction based and seasonal tax servicing fee income. Asset based revenues were down modestly, reflecting a decline in average AUA balances.

Ronald Ohsberg
Ronald Ohsberg
SEVP, CFO & Treasurer at Washington Trust Bancorp

However, at the period, AUA balances totaled $7,200,000,000 up by $363,000,000 or 5%. Mortgage banking revenues totaled $3,000,000 up by $730,000 or 32%. Our mortgage pipeline at June 30 was $102,000,000 up by $6,000,000 or 7% from the March. Loan related derivative income, which is transactional in nature totaled $676,000 in the second quarter compared to $101,000 in Q1. Non interest expense totaled $36,500,000 in Q2.

Ronald Ohsberg
Ronald Ohsberg
SEVP, CFO & Treasurer at Washington Trust Bancorp

Excluding Q1's pension plan settlement charge of $6,400,000 adjusted non interest expense was up by $770,000 or two percent on a linked quarter basis. Salaries and benefits expense was up by $603,000 or 3% largely due to volume related increases in mortgage originator compensation. Income tax expense in the second quarter totaled $3,900,000 and the effective tax rate was 22.7%. Our full year effective tax rate is expected to be 22.4%. Turning to the balance sheet.

Ronald Ohsberg
Ronald Ohsberg
SEVP, CFO & Treasurer at Washington Trust Bancorp

Total loans were up by $44,000,000 or 1%. Total commercial loans increased by $57,000,000 or 2%, while residential loans decreased by 1%. End market deposits were up by $30,000,000 or 1% from the end of the first quarter and by $4.00 $7,000,000 or 9% on a year over year basis. Broker deposits were down by $25,000,000 and FHLB borrowings were up by $151,000,000 Our asset and credit quality metrics remain solid. Non accruing loans were 51 basis points and past due loans were 27 basis points compared with total loans.

Ronald Ohsberg
Ronald Ohsberg
SEVP, CFO & Treasurer at Washington Trust Bancorp

The allowance totaled 41,100,000 or 80 basis points on total loans and provided NPL coverage of 157% and the second quarter provision for credit losses was $600,000 We had net charge offs of $647,000 in the second quarter. And at this time, I will turn the call back to Ned.

Edward Handy
Edward Handy
Chairman & CEO at Washington Trust Bancorp

Thanks, Ron. And Lydia, we can open it up to questions.

Operator

Thank you. Our first question today comes from Mark Fitzgibbon with Piper Sandler. Please go ahead. Your line is open.

Damon Delmonte
Managing Director at Keefe, Bruyette & Woods (KBW)

Hey guys, good morning.

Mark Fitzgibbon
Mark Fitzgibbon
MD & Head - FSG Research at Piper Sandler Companies

Mark. Hey Mark. First question Ron I had for you was sort of how you're thinking about the net interest margin and what you're assuming for Fed rate cuts in the back half of the year?

Ronald Ohsberg
Ronald Ohsberg
SEVP, CFO & Treasurer at Washington Trust Bancorp

Yes. So for the third quarter, I would say you can see our margins starting to level out. So I think we're expecting a pretty modest expansion in the margin, maybe only a couple of basis points in the third quarter. What we are seeing higher than previously projected deposit costs, So kind of reaching the top on that. As far as the Fed, we're a lot less liability sensitive than we were last fall when the Fed was cutting.

Ronald Ohsberg
Ronald Ohsberg
SEVP, CFO & Treasurer at Washington Trust Bancorp

And I think we did a good job last fall of repricing our deposits down. We will aggressively reprice our deposits down as much as we feel we can without causing attrition if the Fed indeed will start to cut. But I don't think that we'll necessarily see as much impact as we did in the third and fourth quarter of last year.

Mark Fitzgibbon
Mark Fitzgibbon
MD & Head - FSG Research at Piper Sandler Companies

Okay, great. And then it looked like you had pretty good mortgage originations this quarter, think 181,000,000 I guess I was curious how much of that was purchased versus refi? And also, what was the mix between sort of hybrid ARMs and thirty year fixed?

Mary E. Noons
Mary E. Noons
President & COO at Washington Trust Bancorp

Hi, Mark. This is Mary. We have about 75% of our origination, related to the purchase market. It it goes as high as 80%, depending on the time frame. As far as the mix, predominantly, the saleable is, thirty year fixed.

Mary E. Noons
Mary E. Noons
President & COO at Washington Trust Bancorp

But we do do a a some origination into portfolio that is a hybrid arm, mostly seven one.

Mark Fitzgibbon
Mark Fitzgibbon
MD & Head - FSG Research at Piper Sandler Companies

Okay. Great. And then I guess, Ned, I'm curious with all the consolidation that we've seen up in Massachusetts recently, it would seem like kind of an opportune time to maybe open some branches up there or even consider a merger with a bank up in the mass market since you have so much of your loan portfolio up there and you have the mortgage business, the wealth business. I guess, I'm curious, is that in the cards for you all? Or how are you thinking about sort of strategic expansion into Massachusetts?

Edward Handy
Edward Handy
Chairman & CEO at Washington Trust Bancorp

Yeah. Always on the list of possibilities. We think there's probably some talent opportunity. We've added a few people in wealth that have spent prior periods in their life in Boston marketplace. We think, Mark, we've got locations in Rhode Island that we can build out where our brand is stronger before we jump into the Massachusetts market on the de novo branching side.

Edward Handy
Edward Handy
Chairman & CEO at Washington Trust Bancorp

We'll see what comes out of the various transactions that are going on in terms of obviously one those transactions has Rhode Island presence. That's going to be interesting to see kind of what opportunities come out of that. M and A, our history, nobody would accuse us of being overly acquisitive. But if the right transaction were to come up at the right price point and enabled us to grow reasonably, we'd have to think about it. I think we've got work to do What on the other way?

Mark Fitzgibbon
Mark Fitzgibbon
MD & Head - FSG Research at Piper Sandler Companies

I'm sorry.

Damon Delmonte
Managing Director at Keefe, Bruyette & Woods (KBW)

Go ahead.

Edward Handy
Edward Handy
Chairman & CEO at Washington Trust Bancorp

No, no, go ahead. I was

Mark Fitzgibbon
Mark Fitzgibbon
MD & Head - FSG Research at Piper Sandler Companies

going to say, what about the other way? There's some much bigger banks up in Massachusetts now that seem to be looking south. Could Washington Trust be a target for one of those banks at some point?

Edward Handy
Edward Handy
Chairman & CEO at Washington Trust Bancorp

I suppose we could. We haven't that hasn't come to our attention yet. We think we're obviously, Mark, our job is to try and maintain independence, and we know we have to earn that, and we know we've got work to do on the organic front to assure that. And that's where we're focused. And so we're we like our independence and we want to stay independent.

Edward Handy
Edward Handy
Chairman & CEO at Washington Trust Bancorp

We'd rather be an acquirer than acquired. But that's always obviously we have a fiduciary duty to respond to any kind of activity, but we haven't seen any yet.

Mark Fitzgibbon
Mark Fitzgibbon
MD & Head - FSG Research at Piper Sandler Companies

Okay. And then lastly, and I hate to beat a dead horse here because I've asked about this in the past, but we've had I think 13 consecutive quarters of net outflows in the Wealth Management Unit. Could you talk about maybe some of the things you're doing to try to stem that or change the direction?

Edward Handy
Edward Handy
Chairman & CEO at Washington Trust Bancorp

Yes. As I pointed out, we've added some talent, not hundreds of people, but a few people that are going to add to our client service capabilities and our sales capabilities in the private clients group. We just finished the conversion of our wealth core system, which I know will create a better customer experience going forward. That's just being rolled out now. I think we've talked about small M and A activity in the primarily in the Rhode Island marketplace where our brand is strongest.

Edward Handy
Edward Handy
Chairman & CEO at Washington Trust Bancorp

That continues to be in our sort of strategic plan. So and and, you know, I think there's a there's a little bit of marketing activity and and that that we're embarking on. But I I I think I think the combination of all those things, there's no silver bullet market. It's a hard business to grow organically. We know that.

Edward Handy
Edward Handy
Chairman & CEO at Washington Trust Bancorp

You've made that point, you're not wrong that in addition to market support, we need to see net growth. And so we're all I can tell you is that we're focused on that incrementally on a lot of fronts.

Damon Delmonte
Managing Director at Keefe, Bruyette & Woods (KBW)

Thank you. Thanks Mark.

Operator

Our next question comes from Damon DelMonte with KBW. Please go ahead.

Damon Delmonte
Managing Director at Keefe, Bruyette & Woods (KBW)

Hey, good morning everyone. Hope you're all doing well today. For taking my Good morning. I guess, first morning. First question on loan growth.

Damon Delmonte
Managing Director at Keefe, Bruyette & Woods (KBW)

Good to see some positive movement here with I think you had about 3% linked quarter annualized for the whole portfolio, but you really got the majority of the growth on the commercial side about 9%. Could you just talk a little bit about kind of how your pipelines are looking today and kind of what your expectations are here for the back half of the year?

Edward Handy
Edward Handy
Chairman & CEO at Washington Trust Bancorp

Yes. Thanks, Damon. Yes, we were happy with the growth and the pipeline continues to grow at quarter end. It was close to $1.40 $105,000,000 which is not the highest it's been over the last five to ten years, but it's up substantially from the end of first quarter with pretty equal balance between C and I and Cree. So we're happy with the activity levels and continue to support kind of the low single digit growth for the year.

Edward Handy
Edward Handy
Chairman & CEO at Washington Trust Bancorp

The second quarter was obviously strong. Payoffs were down a little bit. We do have some projected payoffs still in the second half of the year. So I think we stay with the guidance that we've given, happy with the growth in the quarter.

Damon Delmonte
Managing Director at Keefe, Bruyette & Woods (KBW)

How would you characterize the sentiment of your borrowers today versus call it ninety days ago when there was a lot more uncertainty coming out of DC? Do you feel like people are believing in the economy and believing in their businesses and looking to take the next step forward with investing? Or do you think there's still some skepticism out there?

Edward Handy
Edward Handy
Chairman & CEO at Washington Trust Bancorp

Yeah. It's interesting. I've been looking at some of the the larger regional bank reports, and and I've seen a couple of people comment on higher utilization of lines. We we haven't necessarily seen that, and we don't we don't have a whole lot of, lines of credit, but I think there's still a level of uncertainty. On the real estate side, I think projects are costing more and people are being all the more careful for it.

Edward Handy
Edward Handy
Chairman & CEO at Washington Trust Bancorp

I think investment in machinery and equipment is certainly not back to sort of the old days. But I think people are optimistic but careful, would say. And I think we're I put us in the category. We're we're optimistic about the opportunities we're seeing. We're some, you know, a little more construction opportunity, although that slowed down a fair amount in our in our footprint.

Edward Handy
Edward Handy
Chairman & CEO at Washington Trust Bancorp

So I'd say it's a little better than lukewarm, but it's not quite warm yet. How's that?

Damon Delmonte
Managing Director at Keefe, Bruyette & Woods (KBW)

That sounds good. That's good characterization. Thank you. And then I guess on fee income, the swap gains were or the derivative income was very strong this quarter. Do you think that based on what you're seeing today, like you could kind of repeat a level of this quarter?

Damon Delmonte
Managing Director at Keefe, Bruyette & Woods (KBW)

Or do you think it kind of goes back to more normalized level after this quarter's result?

Ronald Ohsberg
Ronald Ohsberg
SEVP, CFO & Treasurer at Washington Trust Bancorp

I I would lean towards more normal. I mean, they're they're hard to predict. Right? They're they're they're chunky in nature. And, you know, we're working with our with our yeah.

Ronald Ohsberg
Ronald Ohsberg
SEVP, CFO & Treasurer at Washington Trust Bancorp

We're working with our customers and and and making sure that they understand that the product is available to them ultimately. It's it's whatever works best for the customers. But, you know, we're I think we're pushing that a little harder than we were, say, last year. So hard to know, Damon, exactly what will come in on that.

Damon Delmonte
Managing Director at Keefe, Bruyette & Woods (KBW)

Got it. Okay. That's all I had for now. Thank you very much.

Ronald Ohsberg
Ronald Ohsberg
SEVP, CFO & Treasurer at Washington Trust Bancorp

Thanks, Dan. Thank you.

Operator

Thank you. We have a question from Laurie Hunsicker with Seaport Research Partners. Please go ahead.

Laurie Hunsicker
Senior Analyst at Seaport Research Partners

Yeah. Hi. Thanks. Good morning. Hi, Laurie.

Laurie Hunsicker
Senior Analyst at Seaport Research Partners

Just saying just saying it was not interesting to him for a moment. The Boli looked a little bit outsized. Was there anything one time in that?

Ronald Ohsberg
Ronald Ohsberg
SEVP, CFO & Treasurer at Washington Trust Bancorp

No.

Laurie Hunsicker
Senior Analyst at Seaport Research Partners

Okay.

Laurie Hunsicker
Senior Analyst at Seaport Research Partners

Okay. And then just going back to net to to NIM here, your wholesale brokered, you know, down to almost zero, which is great, but, obviously, you had a sharp jump in your FHLBB. How do we think about that? And and do you have a spot margin for us, for the month of June?

Ronald Ohsberg
Ronald Ohsberg
SEVP, CFO & Treasurer at Washington Trust Bancorp

Yeah. The this well, I'll start with the spot margin, which was $2.38. And so, you know, wholesale funding, whether it's brokered or FHLB, is really just a balancing function on the rest of the balance sheet. We're probably carrying a little bit higher, interest bearing deposits at other banks just just from a timing standpoint. So we will pay down that FHLB with excess cash as soon as those advances hit maturity.

Ronald Ohsberg
Ronald Ohsberg
SEVP, CFO & Treasurer at Washington Trust Bancorp

So there's no particular you know, reason for it, Laurie, other than that's just kind of what the balance sheet called for. Brokered CDs are way down because they're just not economical for us right now. They're you know, we we look at those as interchangeable with FHLB just depending on price, and the CD market is just more expensive than FHLB. So we're we're not doing it.

Laurie Hunsicker
Senior Analyst at Seaport Research Partners

Okay. Okay. That's helpful. And then, on expenses, the the sale leaseback that you did, is that fully reflected from an expense standpoint this quarter? Or just remind me when that when that happened last quarter? What was the timing?

Ronald Ohsberg
Ronald Ohsberg
SEVP, CFO & Treasurer at Washington Trust Bancorp

Yeah. It it happened in the fur you know, we did them in the first quarter, and and so, I think the I think the leases kicked in in February. So that that's all that's all in there. And and it was in the guidance that I gave, back in January.

Laurie Hunsicker
Senior Analyst at Seaport Research Partners

Right. Okay. So we we had about a half a quarter expense last quarter, so fully fully in this quarter. Okay. Great. Yep.

Laurie Hunsicker
Senior Analyst at Seaport Research Partners

And then okay. And then any de novo plans for this year, next year? How do think about that?

Ronald Ohsberg
Ronald Ohsberg
SEVP, CFO & Treasurer at Washington Trust Bancorp

Middle middle of next year.

Laurie Hunsicker
Senior Analyst at Seaport Research Partners

And how how many are you looking at?

Ronald Ohsberg
Ronald Ohsberg
SEVP, CFO & Treasurer at Washington Trust Bancorp

Right now, it's one.

Laurie Hunsicker
Senior Analyst at Seaport Research Partners

Okay.

Laurie Hunsicker
Senior Analyst at Seaport Research Partners

Okay. Great. And then just going back over to loan growth, your multifamily growth was substantial this quarter and even last quarter too, but really this quarter. Can you just remind us I don't think there's anything, but can you just remind us, do you have any New York City rent controlled do you have any New York City exposure? How should we think about that?

William Wray
William Wray
SEVP & Chief Risk Officer at Washington Trust Bancorp

Hillary, this is Bill. No. We don't.

Laurie Hunsicker
Senior Analyst at Seaport Research Partners

Great. Okay. And, Bill, probably these these next few questions are for you. So just touching here on on nonperformers. Can you go through that uptick that that C and I nonperformer, that 9,400,000.0?

Laurie Hunsicker
Senior Analyst at Seaport Research Partners

Any details on that loan, timing, expense, specific reserves, just how you're thinking about that?

William Wray
William Wray
SEVP & Chief Risk Officer at Washington Trust Bancorp

This is a this is a potential $11,000,000 exposure to a broadband infrastructure contractor. What happened was during the quarter, their largest customer backed out of a major contract. They had to file for chapter 11 due to cash flow. And we're part of a bank syndicate pushing for expeditious resolution. We have, we think, appropriate specific reserves.

William Wray
William Wray
SEVP & Chief Risk Officer at Washington Trust Bancorp

We expect this will be at least partially resolved this year before the end of the year.

Laurie Hunsicker
Senior Analyst at Seaport Research Partners

Okay. And sorry. How much in reserves do you have on this specific loan?

William Wray
William Wray
SEVP & Chief Risk Officer at Washington Trust Bancorp

We have the appropriate amount.

Laurie Hunsicker
Senior Analyst at Seaport Research Partners

Okay.

William Wray
William Wray
SEVP & Chief Risk Officer at Washington Trust Bancorp

I'm sorry to

Laurie Hunsicker
Senior Analyst at Seaport Research Partners

be it's No. I get that. Okay. Then, obviously, you your, the class b office now performed with the 3,300,000.0 you all said would resolve resolve, which is great. Just are there any details you can share just generally with respect to that resolution?

Laurie Hunsicker
Senior Analyst at Seaport Research Partners

And then I know you had a another credit that was part of that same relationship, the 4,300,000.0, which I think is the only pre non performer that you have. Can you update us on the vacancy and the timing of that? You know, just any color around that one?

Damon Delmonte
Managing Director at Keefe, Bruyette & Woods (KBW)

You noted,

William Wray
William Wray
SEVP & Chief Risk Officer at Washington Trust Bancorp

one was sold that actually was prompted by 10/31. So we were pleased to see that go at a, you know, a loss, but not not a reasonable loss. And then on the remaining non performers, 50% vacant. They are paying. They are trying.

William Wray
William Wray
SEVP & Chief Risk Officer at Washington Trust Bancorp

They are seeing some leasing activity, but we're we're not seeing, to be blunt, a lot of positive momentum there. So that one, we're still, you know, watching carefully, trying to push for expeditious resolution if we can.

Laurie Hunsicker
Senior Analyst at Seaport Research Partners

And that and that is likely gonna be resolved in, what do you think, in the next couple quarters? Or how do you think about that?

William Wray
William Wray
SEVP & Chief Risk Officer at Washington Trust Bancorp

You know, that would be our hope. But right now, they're paying. They're supporting the property. And, you know, we're it's the office market doesn't have demand that's really easily to estimate. So we're pushing all things that we can looking for potential owner occupancy type sales, maybe other ten thirty one.

William Wray
William Wray
SEVP & Chief Risk Officer at Washington Trust Bancorp

So I I couldn't give you a timeline on that other than that we will resolve it as soon as it's appropriate.

Laurie Hunsicker
Senior Analyst at Seaport Research Partners

Okay. Okay. And then just remind us, I know you took a charge off last quarter. What what is the re what's the reserves on that specific loan?

William Wray
William Wray
SEVP & Chief Risk Officer at Washington Trust Bancorp

That loan's been that loan's been appropriately reduced, you know, via via charge off to to the right carry value based on on accounting rules. So I don't wanna get any more specific than that if I can avoid it.

Laurie Hunsicker
Senior Analyst at Seaport Research Partners

Okay. Okay. Alright. And the 21 and a half million, the new construction that's that's part of, you know, part of the SNEC, the the lab, the 21. Do have any updates on that?

William Wray
William Wray
SEVP & Chief Risk Officer at Washington Trust Bancorp

Yes. That's gone from 50% to 62% leased. And if we things keep moving, it's on track for 70. If we for there's an LOI out for that, we hope. So good momentum on that project.

William Wray
William Wray
SEVP & Chief Risk Officer at Washington Trust Bancorp

Still classified where it is, but, you know, we think it's got some some traction.

Laurie Hunsicker
Senior Analyst at Seaport Research Partners

Okay. Okay. Great. Thank you so much. I know I asked a lot of questions on credit here.

Laurie Hunsicker
Senior Analyst at Seaport Research Partners

Your credit's really good, but just wanted some details. And I guess, Ned, just very high level back to you. Your capital levels are strong, but your stock is still sitting here 15% below your cap rate. Can you talk a little bit about how you're thinking about buyback consideration?

Edward Handy
Edward Handy
Chairman & CEO at Washington Trust Bancorp

Yeah. Laurie, you know, we we have the approval in place and and, Ron, we we we dipped our toe in the water for a day. But but, Laurie, we really decided that capital capital preservation and growth is a more prudent thing for us right at the moment. And it's something we keep our eyes on. Ron, don't know if you have a

Ronald Ohsberg
Ronald Ohsberg
SEVP, CFO & Treasurer at Washington Trust Bancorp

Yeah, Lori. Listen, it's tempting and I can certainly make an argument. And and Ned said, we we actually did initiate for for for a single day and and then decided that, you know, we're we're more focused on operations and just kind of, you know, our our capital is fine, and we we think we'd like to have a little bit more. So that that's kind of where we are at the moment.

Laurie Hunsicker
Senior Analyst at Seaport Research Partners

Okay. And how many shares you got back in the quarter?

Ronald Ohsberg
Ronald Ohsberg
SEVP, CFO & Treasurer at Washington Trust Bancorp

I think it was 10,000.

Laurie Hunsicker
Senior Analyst at Seaport Research Partners

Okay, great. Thanks for taking my question.

Edward Handy
Edward Handy
Chairman & CEO at Washington Trust Bancorp

Thanks, Laurie.

Operator

Thank you. We have no further questions. So I'll pass you back over to Ned Handy for any closing comments.

Edward Handy
Edward Handy
Chairman & CEO at Washington Trust Bancorp

Great. Thanks, Lydia, and thanks, everybody. I hope we presented a clear picture of the current state and our focus going forward. And as we near our company's two hundred and twenty fifth birthday next month, we want to say thank you to our customers for entrusting us as their partner along their journeys, to our employees, past and present, for bringing their expertise and heart to every customer interaction, and to our shareholders for continuing to support our vision and investing in community banking in general. We certainly appreciate your time today and look forward to speaking to you all again soon. Thanks everybody. Have a great day.

Operator

This concludes our call today. Thank you for joining. You may now disconnect your line.

Executives
    • Sharon Walsh
      Sharon Walsh
      SVP, Director - Marketing Strategy & Planning
    • Edward Handy
      Edward Handy
      Chairman & CEO
    • Ronald Ohsberg
      Ronald Ohsberg
      SEVP, CFO & Treasurer
    • Mary E. Noons
      Mary E. Noons
      President & COO
    • William Wray
      William Wray
      SEVP & Chief Risk Officer
Analysts
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