Cuộc họp công bố kết quả kinh doanh Q3 2026 của Washington Trust (WASH): Biên lợi nhuận mở rộng, dự báo NIM Q4 ở mức 2.85%-2.90%

Điểm tin chính

• Washington Trust Bancorp đã báo cáo lợi nhuận ròng quý 3 năm 2026 đạt 19,4 triệu USD, tương đương 1,01 USD mỗi cổ phiếu, tăng 3,4 triệu USD và 0,18 USD mỗi cổ phiếu so với quý 2.
• Thu nhập lãi thuần tăng 7% so với quý trước và tăng 15% so với cùng kỳ năm ngoái lên 44,7 triệu USD. Biên lãi ròng mở rộng lên 2,84%, tăng 11 điểm cơ bản so với quý 2 và tăng 44 điểm cơ bản so với cùng kỳ năm ngoái.
• Tiền gửi tăng 77 triệu USD, tương đương 1%, trong quý và tăng 4% so với cùng kỳ năm ngoái, trong khi nguồn vốn bán buôn giảm 80 triệu USD, tương đương 18%, so với ngày 30 tháng 6.
• Các chỉ số tín dụng được cải thiện sau khi xử lý khoản vay văn phòng trị giá 22,3 triệu USD. Tỷ lệ nợ không sinh lời giảm xuống 0,48% tổng dư nợ so với 0,78% trong quý 2.
• Ban lãnh đạo dự báo biên lãi ròng quý 4 sẽ đạt 2,85%-2,90%. Triển vọng này đã bao gồm đợt tăng lãi suất tháng 9 nhưng không bao gồm các đợt tăng lãi suất bổ sung có thể xảy ra.
• Danh mục cho vay thương mại chờ giải ngân đạt khoảng 230 triệu USD vào ngày 30 tháng 9 và tập trung nhiều vào cho vay thương mại & công nghiệp (C&I). Ban lãnh đạo tiếp tục đặt mục tiêu tăng trưởng cho vay thương mại từ 2%-3% mỗi quý.

Dữ liệu tài chính chính

Kết quả quý này bao gồm 283.000 USD thu nhập lãi từ quý trước của một khoản vay được ghi nhận dồn tích trở lại, đóng góp khoảng 2 điểm cơ bản vào biên lãi ròng. Thuế suất thực tế là 20,4%.

Kết quả hoạt động kinh doanh và vận hành

Doanh thu từ quản lý tài sản giảm 1% so với quý 2 nhưng tăng 7% so với cùng kỳ năm ngoái. Doanh thu dựa trên tài sản cao hơn đã bù đắp cho sự sụt giảm mang tính mùa vụ của thu nhập từ phí dịch vụ thuế.

Doanh thu ngân hàng thế chấp giảm do hợp đồng thế chấp chờ xử lý thu hẹp và lãi suất thị trường tăng. Thu nhập từ công cụ phái sinh liên quan đến khoản vay tăng 924.000 USD, trong khi thu nhập từ bảo hiểm nhân thọ do ngân hàng sở hữu bao gồm khoản lãi 954.000 USD.

Bất động sản thương mại là động lực chính thúc đẩy tăng trưởng dư nợ quý 3. Ban lãnh đạo cho biết tổng danh mục cho vay tăng trưởng với tốc độ quy năm khoảng 5% trong quý, trong khi danh mục thương mại tăng trưởng với tốc độ quy năm khoảng 10%.

Danh mục cho vay thương mại chờ giải ngân khoảng 230 triệu USD tập trung nhiều vào các khoản vay C&I, bao gồm khoảng 40 triệu USD thuộc nhóm ngân hàng định chế. Ban lãnh đạo kỳ vọng hoạt động định chế sẽ mạnh lên trong quý 4 và quý 1 sau đợt trầm lắng mang tính mùa vụ trong quý 3.

Washington Trust cũng đang chuẩn bị mở hai chi nhánh tại Rhode Island vào gần cuối quý 4. Ban lãnh đạo ước tính chi phí vận hành hàng năm duy trì ở mức khoảng 750.000-800.000 USD cho mỗi chi nhánh.

Dự báo từ ban lãnh đạo

Ban lãnh đạo kỳ vọng biên lãi ròng quý 4 sẽ đạt từ 2,85%-2,90%. Washington Trust vẫn nhạy cảm nhẹ với tài sản và dự báo này chỉ mới tính đến đợt tăng lãi suất tháng 9. Ban lãnh đạo ước tính mỗi đợt tăng lãi suất 25 điểm cơ bản bổ sung có thể đóng góp thêm 1-2 điểm cơ bản vào biên lãi ròng.

Khoảng 2,1 tỷ USD trong danh mục cho vay gắn liền với lãi suất SOFR hoặc lãi suất cơ bản (prime), trong đó các khoản vay SOFR thường được điều chỉnh hàng tháng. Việc tái đầu tư dòng tiền từ danh mục cho vay thế chấp nhà ở trị giá 2 tỷ USD dự kiến sẽ tạo động lực hỗ trợ biên lãi ròng từ 1-2 điểm cơ bản mỗi quý. Ban lãnh đạo cũng xác nhận lợi ích thêm 4 điểm cơ bản từ một hợp đồng hoán đổi đã chấm dứt.

Chi phí ngoài lãi quý 4 dự kiến sẽ tăng khoảng 1,5 triệu USD so với quý 3, phản ánh các khoản đầu tư vào chi nhánh, tiếp thị, công nghệ và nhân sự. Con số này không bao gồm khoản đóng góp hàng năm 750.000 USD cho quỹ từ thiện của công ty. Ban lãnh đạo xác nhận mức chi phí quý 4 ước tính khoảng 41 triệu USD bao gồm cả khoản đóng góp đó.

Thuế suất thực tế cả năm 2026 dự kiến đạt khoảng 21,5%.

Rủi ro và các yếu tố cần theo dõi

Áp lực cạnh tranh vẫn ở mức cao đối với các tài sản bất động sản thương mại chất lượng cao. Ban lãnh đạo đề cập đến chênh lệch lãi suất thị trường nằm trong khoảng 170-180 điểm cơ bản, điều này có thể hạn chế lợi ích định giá lại từ các khoản vay CRE phát hành ở mức lãi suất thấp hơn.

Một tài sản Hạng A trị giá khoảng 6 triệu USD đã được chuyển sang trạng thái nợ xấu do rủi ro định giá tiềm ẩn, mặc dù tỷ lệ lấp đầy ổn định, nhà tài trợ cam kết đầy đủ và không bỏ lỡ khoản thanh toán nào. Khoản vay này đến năm 2031 mới đáo hạn.

Ban lãnh đạo đang làm việc với các nhà tài trợ để xử lý khoản tín dụng 6,6 triệu USD cho không gian phòng thí nghiệm. Một bất động sản phòng thí nghiệm riêng biệt trị giá 28 triệu USD đã cho thuê 95% và có thể được đưa ra khỏi nhóm nợ cần chú ý nếu hiệu quả thanh toán tiền thuê của người thuê tiếp tục cải thiện.

Tổng vốn chủ sở hữu đã giảm trong quý do giá trị hợp lý của các chứng khoán nợ sẵn sàng để bán giảm và việc trả cổ tức hàng quý. Ban lãnh đạo cho biết các tỷ lệ vốn theo GAAP vẫn thấp hơn so với các ngân hàng cùng ngành, mặc dù các tỷ lệ vốn an toàn hoạt động theo quy định vẫn ở mức đạt yêu cầu.

Những điểm chính trong phần Hỏi & Đáp với chuyên gia phân tích

• Huy động tiền gửi: Ban lãnh đạo cho rằng phần lớn sự tăng trưởng tiền gửi không trả lãi đến từ các mối quan hệ ngân hàng định chế và các tài khoản hoạt động liên quan. Ngân hàng có kế hoạch duy trì tăng trưởng tiền gửi ở mức tương đương tăng trưởng dư nợ cho vay, đồng thời duy trì tùy chọn sử dụng nguồn vốn bán buôn khi phù hợp.
• Tăng trưởng dư nợ: Việc hoàn trả khoản vay mạnh mẽ trong nửa đầu năm đồng nghĩa với việc công ty không kỳ vọng sẽ khôi phục đủ sản lượng để đạt mức tăng trưởng một chữ số ở mức trung bình cho năm lịch 2026. Thay vào đó, mục tiêu đề ra phản ánh tốc độ duy trì, bao gồm mức tăng trưởng thương mại 2%-3% mỗi quý.
• Chi phí chi nhánh: Một số chi phí tuyển dụng và bất động sản sẽ phát sinh trước khi hai chi nhánh mới mở cửa. Ban lãnh đạo đồng ý rằng chi phí bổ sung khoảng 300.000 USD hàng quý trong quý 1 năm 2027 là một giả định mô hình hợp lý khi các chi nhánh đi vào hoạt động hoàn toàn.
• Phân bổ vốn: Ban lãnh đạo hiện không có kế hoạch mua lại cổ phiếu. Vốn đang được giữ lại để hỗ trợ sự tăng trưởng dự kiến của bảng cân đối kế toán và dư nợ cho vay.

Toàn văn biên bản cuộc họp báo cáo kết quả kinh doanh

Toàn văn cuộc gọi công bố kết quả kinh doanh

Phần trình bày của ban lãnh đạo

Operator

Good morning, and welcome to Washington Trust Bancorp, Inc.'s Q3 2026 Conference Call. My name is Hillary, and I'll be your operator today. [Operator Instructions] As a reminder, today's call is being recorded.

I'll now turn the call over to Sharon Walsh, Senior Vice President, Director of Marketing and Corporate Communications. Sharon, please go ahead.

Sharon Walsh

Thank you, Hillary. Good morning, and welcome to Washington Trust Bancorp, Inc.'s conference call for the third quarter of 2026.

Joining us this morning are members of Washington Trust's executive team, Ned Handy, Chairman and Chief Executive Officer; Mary Noons, President and Chief Operating Officer; Ron Ohsberg, Senior Executive Vice President, Chief Financial Officer and Treasurer; and Bill Wray, 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. 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.com. Washington Trust trades on NASDAQ under the symbol WASH.

I'm now pleased to introduce you to today's host, Washington Trust's Chairman and Chief Executive Officer, Ned Handy. Ned?

Edward Handy

Thank you, Sharon. Good morning, everyone, and thank you for joining our third quarter conference call. We continue to appreciate your time and your interest in Washington Trust. I'll begin with a few comments about the quarter, and then Ron will provide more detail on our financial performance.

Following our remarks, Mary and Bill will join us for the question-and-answer session. We delivered another strong quarter marked by growth in earnings and net interest income, continued margin expansion and improved operating efficiency. Our asset quality metrics improved, reflecting the resolution of a commercial real estate office loan. Our capital position remains strong and supports prudent growth.

We're continuing to expand our presence in Rhode Island with 2 new branches opening in the coming months. These locations will provide the trusted advice, comprehensive solutions, convenience and personalized service that our customers deserve.

We look forward to building long-term financial partnerships with individuals, families and businesses in these markets.

And now I'll turn the call over to Ron to provide additional details on our third quarter financial results. Ron?

Ronald Ohsberg

Yes. Thanks, Ned, and good morning, everyone. Third quarter net income was $19.4 million or $1.01 per share, up by $3.4 million or $0.18 from the preceding quarter. Pre-provision pretax net revenue, or PPNR, was up 20% from Q2 and up by 26% year-over-year. Net interest income was $44.7 million, up by 7% from Q2 and up by 15% year-over-year.

The margin was 2.84%, up by 11 basis points from Q2 and up by 44 basis points year-over-year. The third quarter included $283,000 of second quarter interest income from a loan that was returned to accrual during the quarter, and this benefited the NIM by about 2 basis points.

Noninterest income was up by $1.6 million or 9% compared to Q2 and by -- up by 15% year-over-year. Wealth management revenues were down by 1% compared to Q2 and up by 7% year-over-year. In the third quarter, an increase in asset-based revenues were offset by a decline in tax servicing fee -- a seasonal decline in tax servicing fee income.

Mortgage banking revenues totaled $3.2 million, down by 9% from the second quarter and down by 10% year-over-year, reflecting a decrease in the mortgage pipeline as well as rising market interest rates. Loan-related derivative income was up by $924,000 and income from bank-owned life insurance was up largely due to the recognition of a gain of $954,000 in the third quarter.

Noninterest expense totaled $38.8 million in the third quarter, up by $200,000 or 0.5%. Our third quarter effective tax rate was 20.4%, and we expect our full year 2026 rate to be approximately 21.5%.

Turning to the balance sheet. Total loans were up by 1% from June 30. Total commercial loans increased by $62 million or 2.3%, driven by growth in the CRE portfolio. Deposits were up by $77 million or 1% from the end of the second quarter and up by $213 million or 4% year-over-year. And wholesale funding was down by $80 million or 18% from the end of June.

Total equity amounted to $531 million, down by $23 million from the end of the second quarter. In the third quarter, net income was offset by a decline in the fair value of available-for-sale debt securities as well as the quarterly dividend. The dividend remains at $0.56 per share.

Turning to asset and credit quality. Overall, our asset and credit quality metrics improved. At September 30, nonaccruing loans were 48 basis points on total loans, decreasing from 78 basis points and past due loans were 54 basis points on total loans, down by -- down from 81 basis points at the end of the second quarter.

The improvement was largely driven by the resolution of an office loan of $22.3 million that was placed on nonaccrual in the first quarter. During the third quarter, this loan was restructured, resulting in $18.5 million being returned to accrual and $3.8 million being charged off. In the third quarter, we recognized $1.8 million provision for credit losses.

And at this time, I will turn the call back over to Ned.

Edward Handy

Thanks, Ron, and we'll move to question and answers.

Operator

[Operator Instructions] Your first question comes from the line of Justin Crowley from Piper Sandler. A reminder to unmute yourself locally if you would like to ask the question on your device. I will move to the next question. Please rejoin the queue if you are looking to ask a question. Your next call comes from the line of Damon DelMonte from KBW.

Phần hỏi đáp

Damon Del Monte

Just wanted to start on the outlook for the margin. You've had a string of consecutive quarters of nice margin expansion. And just kind of curious, Ron, to get your thoughts on how you see it kind of playing out over the back half of this year and as we go into '27, especially with the rate hike that we had in September and the prospects of additional hikes over the coming quarters as well.

Ronald Ohsberg

Yes. So, Damon, it's probably a little early to be talking about 2027, but our -- we've revised our guidance for Q4. We're going to guide to a range of 2.85% to 2.90%.

Damon Del Monte

Okay, great. When we think about...

Ronald Ohsberg

So, yes, I would say that we remain modestly asset sensitive. So, that guidance includes just the September rate hike at this point. And we think that each 25 basis point hike probably gives us 1 to 2 basis points on the run rate.

Damon Del Monte

2 basis points on the run rate. Okay, great. And then kind of along those lines, the noninterest-bearing deposit growth has been really strong in the last couple of quarters. Just any color on what's driving that?

Ronald Ohsberg

Yes. I think a good part of it is the institutional banking team onboarding operating accounts related to the relationships that they're bringing in is probably the biggest driver. But I think we have kind of an across-the-board approach to taking in deposits across both retail and commercial at this point. So, yes, we had pretty good growth in the quarter, and we'll see if we can maintain that.

Damon Del Monte

Got it. Okay. And then just one more for me. On the expense outlook, a good quarter this quarter, pretty much flat. Just curious on your outlook for the fourth quarter and kind of any puts and takes around that.

Ronald Ohsberg

Yes. Yes. So, listen, on the last call, we guided to a $1 million increase in the quarter, and we came in below that. I would say a lot of that is timing related. So, we're going to see a shift to some of that previously expected expense growth shifting into the fourth quarter.

So, for the fourth quarter, we're looking at an increase of about $1.5 million. We are making some targeted investments in a few areas, including some new branches that are coming online, some marketing spend, some technology spend, some personnel spend, kind of that $1.5 million is kind of evenly distributed across that.

That -- none of that includes our annual $750,000 contribution to our charitable foundation. So, that would be incremental to the $1.5 million.

Operator

Your next question comes from the line of Justin Crowley from Piper Sandler.

Justin Crowley

Hopefully, you can hear me now.

Edward Handy

We can, Justin.

Justin Crowley

Perfect. Ron, just going back to the margin. If I remember correctly, I believe you were going to get another 4 basis points benefit from the terminated swap this quarter. So, I just wanted to confirm that, that was the case.

Ronald Ohsberg

Yes, it is.

Justin Crowley

Okay. And then I guess just looking out a little further, do you have detail on what loan repricings look like if we go out to the end of 2027? What that looks like from a volume and then just rate pickup standpoint?

Ronald Ohsberg

Yes. So, we've got, call it, about $2.1 billion of SOFR and prime-based loans. So, each -- those SOFR loans are resetting monthly. So, that's kind of the repricing that we see immediately every time the Fed makes a change.

Justin Crowley

Okay. And then -- but for the -- like the fixed to floating or any of the like 5-year CRE paper, do you get any benefit there, just kind of given some of the growth you put on back in 2022?

Ronald Ohsberg

I'm sorry, say that again, Justin.

Justin Crowley

Just for the 5-year fixed to floating type commercial real estate paper. If I just kind of like look back to growth you put on 5 years ago, I would think there's some benefit there as we get into next year, although perhaps not.

Edward Handy

Yes. I would say -- Justin, it's Ned. I would say that CRE loans that are maturing that were underwritten at much lower rates are obviously -- to the extent that they do extend and don't pay off, we still see a fair amount of those paying off even before maturity. But I'd say we get a little bit of a lift, obviously, from the lows.

I will tell you, though, that what we're seeing in the market in general is spreads are tightening. As rates rise, they tend to, especially in sort of high-quality assets. So, we're seeing spreads in the, I don't know, 170s, 180s for high-quality assets. So, that bites into that benefit a little bit.

And obviously, there's a lot of competition for quality assets. So, it's a mix. I mean I think we're getting a little bit of a lift off of the lows. But I think in general, the market is very competitive and spreads are getting a little thinner.

Ronald Ohsberg

Yes. So, Justin, I can add to that. Really, there's more of a tangible benefit, I think, on the residential side. We've got a $2 billion residential book. So, as that's amortizing and we're reinvesting those cash flows, that's giving us a tailwind of about 1 to 2 basis points a quarter.

Justin Crowley

Okay. Got it. That's helpful. And then just on loan growth, I think you guys have talked about mid-single digits previously. It seems like that might be tough to get to just barring a really strong fourth quarter. So, just kind of curious how you're thinking about that trend line from here.

Ronald Ohsberg

Yes. Yes. So, listen, I would say when we think about mid-single digits, we're really talking about run rate versus calendar year. So, we had strong payoffs in the first and second quarter. So, we're not going to make that up inside of 2026.

But I think our loan growth in the second quarter and in the third quarter was pretty strong, and we're looking at annualized total portfolio growth of 5%, and we're looking at within the commercial book about 10%. So, this quarter, the commercial book delivered 2.3%. That's kind of within our target range of 2% to 3% quarterly commercial growth, which over the year, we're looking at that averaging out to about 10% annualized growth.

Justin Crowley

Okay. Got it. And then maybe just one last one as a follow-up to that a little. Just any thoughts on the mix as we go forward? You saw CRE come back after the slower first half with some of the payoffs you alluded to and then the softer period on the C&I or institutional group. So, just kind of curious how you're thinking about both of those areas?

Edward Handy

Yes, that's a good question. And I think as we guided, the growth in Q3 would be sort of real estate heavy given the seasonality of the institutional, especially in the education space, the institutional business. But the pipeline going forward, I mean, we've got about a $230 million pipeline as of 9/30, which is weighted towards C&I, with about $40 million of that today in the institutional group.

We did do a $10 million New England school deal in the third quarter. So, there was a little bit of institutional, but I think it kind of followed as we predicted that it would slow down a little bit in Q3 and pick up Q4 and into Q1. But pipeline is pretty strong and again, weighted towards commercial.

Operator

Your next question comes from the line of Laurie Hunsicker, who is a private investor.

Laura Havener Hunsicker

Laurie Hunsicker from Seaport. I just wanted to circle back here on expenses. I just want to make sure that I'm getting this right. So, round numbers, you're going to be about $41 million or so for the fourth quarter, including the Charitable Foundation of $750,000?

Ronald Ohsberg

Yes.

Laura Havener Hunsicker

Okay. And then obviously, that is including the branch spend, the Bristol and the Pawtucket. Can you update us on exactly when those are opening? And then just help us think about is that fourth quarter then a fully baked run rate? Or how should we be thinking about that?

Ronald Ohsberg

No. They're coming on. Laurie, I don't have the exact timing, but right around the end of the quarter. There is some ramp-up spending that occurs. We have to hire the people. We've got some real estate costs. So, some of that expense is -- you can see it in our -- you will see it in our run rate even before the branch is opened. But the ongoing run rate for a branch is around $750,000 to $800,000 a year.

Laura Havener Hunsicker

Okay. So, just in terms of 1-quarter expense modeling, just thinking about maybe another $400,000 add for those branches to be fully phased. Or maybe it's a little less, maybe it's 150 a branch or maybe 300 additional -- $300,000 additional of expense into the first quarter of '27.

Ronald Ohsberg

I think that's fair. Yes.

Laura Havener Hunsicker

Okay. Okay. And do you have any branches planned now for 2027?

Ronald Ohsberg

We have nothing planned, although I would say that we are still interested in expanding the branch footprint. So, nothing to talk about yet, but in coming quarters, we probably have something to talk about there.

Laura Havener Hunsicker

Okay. Okay. Great. Yes, loved seeing your deposit growth and just very. You held the line almost across the board on raising rates there. So, your loan-to-deposit ratio now sitting below 95%, which is great. Can you help us think about what that target looks like into next year? And then maybe, Ned, just very high level, can you talk about the competitive pressures you're seeing on deposit costs in order to grow those buckets?

Ronald Ohsberg

Yes. So, yes, we're very pleased with our loan-to-deposit ratio, which is at a level a low level that we've rarely been at in the past. And as you know, Laurie, we've been quite a bit higher than that previously. We're committed to maintaining our deposit growth in the neighborhood of where our loan growth is. Our loan growth will be higher in the coming couple of years than it has been in the previous couple of years.

So, we will have our work cut out for us to keep that deposit growth going and making sure that we can fund those loans. We don't have -- we've got internal policy limits and things of that nature. But I don't have a target loan-to-deposit ratio to share with you. I will say that we would rely on wholesale funding to some degree to fund appropriate loan growth when we get to that point. I don't know. That's about the best I can tell you.

Laura Havener Hunsicker

Okay. Okay. And do you have a spot margin?

Ronald Ohsberg

Yes. I mean, call it 2.85% for September.

Laura Havener Hunsicker

Okay. Great. And then I just had a couple of questions on credit. Loved, obviously, seeing the $22 million resolution. The $6 million Class A that was new into nonperformers, I guess, what is that loan? What's the occupancy? What's maybe your thoughts on timing of resolution there?

William Wray

Laurie, this is Bill Wray. That's been there for a while. Committed sponsors never missed a payment, but we just felt it was the appropriate time to look at potential valuation risk, but the property doesn't mature until 2031. So, occupancy has been level, but it's not at stabilized levels. So, we felt that was just the right step to take at this point.

Laura Havener Hunsicker

Okay. But so last quarter, it was performing and then you moved it to nonperformer. I'm just wondering what triggered that?

William Wray

I'm just thinking about valuation risk, I think, and we felt it was the right time. Again, there's been no change in commitment from the sponsors, no change in occupancy up or down. And as you said, they've never missed a payment.

Laura Havener Hunsicker

Okay. Okay. Great. And then I just wondered on the $6.6 million lab space, any update on that? I know that was in sort of initial lease-up phase, I think last time we were chatting. Any color to add there?

William Wray

We are working with the sponsors on that and moving towards an exit scenario. And so we're in the middle of those discussions.

Laura Havener Hunsicker

Okay. Okay. And then last one for me. The $28 million lab space that's unclassified, I think there was a thought that, that potentially could be returning here to -- that it could certainly be migrating out of special mention here in the next couple of quarters. I have in my notes that property was fully leased. Can you just update us on when we might see movement in that?

William Wray

It's fully leased, 95%. We've been waiting for the tenants to burn off free rent and show performance. All trends have been positive. And so we're feeling reasonably good about a near-term move out of special mention. But until we have all the quarter-end information in terms of rent payments, we don't -- we can't commit to that yet, but that's where it's headed, we think.

Laura Havener Hunsicker

Okay. Great. And then one very last question, Ned, for you. Obviously, your capital ratios are very, very strong here. Can you just refresh us on revisiting the buyback and how you're thinking about that?

Edward Handy

Yes. I mean we don't have any plans to buy stock back at this point, the price is high. I mean we've got the capital. We've got other things to invest in, and we want to make sure we have ample capital to support the growth we're looking forward to on the loan side. So, I think we'll kind of keep our position of holding off on repurchases at the moment. Ron, I don't know if you have other...

Ronald Ohsberg

No, that's it. I mean we've got plans to grow the balance sheet. So, we're going to hold on to that capital right now. Laurie, I mean, listen, our regulatory capital ratios look fine. Our GAAP capital ratios remain on the lighter side of the peer group. We recognize that. We've recognized that for a while. So, I think the prudent thing for us to do right now is to deploy that capital into the growth of the business.

Operator

There are no further questions at this time. I will now turn the call back to Ned Handy, Chairman and CEO, for closing remarks.

Edward Handy

Well, thank you, everybody. Again, we appreciate your time and your interest in Washington Trust and very much look forward to speaking with you again next quarter. Have a great day, everybody.

Operator

This concludes today's call. Thank you for attending. You may now disconnect.