Washington Trust Announces Stock Offering
Washington Trust Bancorp (NASDAQ: WASH) has announced an underwritten public offering of $55 million of common stock, with an additional 30-day option for the underwriter to purchase up to 15% more shares. BofA Securities is the sole book-running manager for the offering.
The company plans to use the net proceeds for general corporate purposes to support organic growth and capital generation, including investments in The Washington Trust Company and Bank balance sheet optimization strategies. These strategies involve selling lower-yielding loans, available-for-sale debt securities, repaying wholesale funding balances, and purchasing debt securities with current market yields.
Washington Trust Bancorp (NASDAQ: WASH) ha annunciato un'offerta pubblica sottoscritta di 55 milioni di dollari di azioni comuni, con un'opzione aggiuntiva di 30 giorni per il sottoscrittore di acquistare fino al 15% di azioni in più. BofA Securities è l'unico gestore del libro per l'offerta.
La società prevede di utilizzare i proventi netti per scopi aziendali generali a sostegno della crescita organica e della generazione di capitale, comprese le investimenti in The Washington Trust Company e strategie di ottimizzazione del bilancio della banca. Queste strategie comportano la vendita di prestiti a basso rendimento, titoli di debito disponibili per la vendita, il rimborso dei saldi di finanziamento all'ingrosso e l'acquisto di titoli di debito con rendimenti di mercato attuali.
Washington Trust Bancorp (NASDAQ: WASH) ha anunciado una oferta pública suscrita de 55 millones de dólares en acciones comunes, con una opción adicional de 30 días para que el suscriptor compre hasta un 15% más de acciones. BofA Securities es el único administrador del libro para la oferta.
La compañía planea utilizar los ingresos netos para fines corporativos generales para respaldar el crecimiento orgánico y la generación de capital, incluyendo inversiones en The Washington Trust Company y estrategias de optimización del balance del banco. Estas estrategias incluyen la venta de préstamos de bajo rendimiento, valores de deuda disponibles para la venta, el reembolso de saldos de financiamiento mayorista y la compra de valores de deuda con rendimientos de mercado actuales.
워싱턴 트러스트 뱅코프 (NASDAQ: WASH)는 5500만 달러의 보통주에 대한 공모 청약을 발표했으며, 인수인이 추가로 15%의 주식을 구매할 수 있는 30일 옵션이 있습니다. BofA Securities는 이번 공모의 단독 북매니저입니다.
회사는 일반 기업 용도로 순이익을 사용할 계획이며, 이를 통해 유기적 성장과 자본 생성 지원을 포함하여 워싱턴 트러스트 컴퍼니와 은행의 자산 최적화 전략에 대한 투자를 포함합니다. 이러한 전략에는 낮은 수익률의 대출 판매, 매각 가능한 채무 증권, 도매 자금 잔고 상환 및 현재 시장 수익률로 채무 증권 구매가 포함됩니다.
Washington Trust Bancorp (NASDAQ: WASH) a annoncé une offre publique souscrite de 55 millions de dollars d'actions ordinaires, avec une option supplémentaire de 30 jours pour le souscripteur d'acheter jusqu'à 15% d'actions supplémentaires. BofA Securities est le seul gestionnaire livre pour l'offre.
La société prévoit d'utiliser les produits nets à des fins corporatives générales pour soutenir la croissance organique et la génération de capital, y compris des investissements dans The Washington Trust Company et des stratégies d'optimisation du bilan bancaire. Ces stratégies consistent à vendre des prêts à faible rendement, des titres de créance disponibles à la vente, à rembourser des soldes de financement de gros et à acheter des titres de créance avec les rendements du marché actuel.
Washington Trust Bancorp (NASDAQ: WASH) hat eine unterzeichnete öffentliche Angebot von 55 Millionen Dollar an Stammaktien angekündigt, mit einer zusätzlichen 30-tägigen Option für den Emittenten, bis zu 15% mehr Aktien zu kaufen. BofA Securities ist der alleinige Book-Running-Manager für das Angebot.
Das Unternehmen plant, die Nettoerlöse für allgemeine Unternehmenszwecke zur Unterstützung des organischen Wachstums und der Kapitalgenerierung zu verwenden, einschließlich Investitionen in The Washington Trust Company und Optimierungsstrategien für die Bilanz der Bank. Diese Strategien beinhalten den Verkauf von niedrigverzinslichen Darlehen, zum Verkauf angebotene Schuldtitel, die Rückzahlung von Großhandelsfinanzierungssalden sowie den Kauf von Schuldtiteln mit aktuellen Marktrenditen.
- Strategic balance sheet optimization initiative to improve yield performance
- Potential for organic growth and capital generation through new funding
- Potential dilution of existing shareholders through $55M stock offering
- Need to sell lower-yielding assets indicates current yield performance challenges
Insights
This
The offering's size represents approximately
This capital raise reflects broader industry trends where regional banks are seeking to optimize their balance sheets amid challenging market conditions. The focus on replacing lower-yielding assets with current market yield investments suggests a defensive strategy to protect margins. The involvement of BofA Securities as sole book-runner adds credibility to the offering.
The planned balance sheet optimization strategy, including the reduction of wholesale funding, indicates a shift towards a more efficient funding structure. However, the execution of this strategy, particularly the timing of asset sales and reinvestment, will be important in determining its success in enhancing shareholder value.
The Corporation intends to use the net proceeds of this offering for general corporate purposes to support continued organic growth and capital generation, which are expected to include investments in the Bank and Bank balance sheet optimization strategies involving the sale of lower-yielding loans and available for sale debt securities, the repayment of wholesale funding balances and the purchase of debt securities with current market yields.
ADDITIONAL INFORMATION REGARDING THE OFFERING
The common stock offering is being made pursuant to a shelf registration statement on Form S-3 (File No. 333-274430), which was filed with the Securities and Exchange Commission (the "SEC") on September 8, 2023, and declared effective by the SEC on September 29, 2023. A preliminary prospectus supplement to which this communication relates has been filed with the SEC, and a prospectus supplement will be filed with the SEC prior to the closing of the common stock offering. Before you invest in any securities, you should read the preliminary prospectus supplement and accompanying prospectus, including the risk factors set forth therein, the registration statement and the documents incorporated by reference therein, and the other documents that the Corporation has filed with the SEC for more complete information about the Corporation and the offering. Copies of these documents are available at no charge by visiting EDGAR on the SEC's website at www.sec.gov. When available, copies of the preliminary prospectus supplement, the prospectus supplement and accompanying prospectus related to the offering may also be obtained from BofA Securities, NC1-022-02-25, 201, North Tryon Street,
NO OFFER OR SOLICITATION
This press release does not constitute an offer to sell, a solicitation of an offer to sell, or the solicitation of an offer to buy any securities. There will be no sale of securities in any jurisdiction in which such an offering, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
SPECIAL NOTE CONCERNING FORWARD-LOOKING STATEMENTS
This press release contains statements that are "forward-looking statements." Forward looking-statements include all statements that are not historical facts and include any statements regarding the proposed offering and the intended use of net proceeds from the offering. 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. Such forward-looking statements involve certain risks and uncertainties. Actual results may differ materially from such forward-looking statements. A detailed discussion of factors that could affect our results is included in the Corporation's SEC filings, including Item 1A. "Risk Factors" of its Annual Report on Form 10-K for the year ended December 31, 2023. 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 from the anticipated future results, performance, or achievements expressed or implied by the forward-looking statements. The Corporation undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in our expectations, except as required by law.
ABOUT WASHINGTON TRUST BANCORP, INC.
Washington Trust Bancorp, Inc., NASDAQ: WASH, is the publicly-owned holding company of The Washington Trust Company ("Washington Trust", "the Bank"), with
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SOURCE Washington Trust Bancorp, Inc.
FAQ
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