Washington Savings Bank's stock price plummeted Monday on news of credit-quality troubles at the $558 million-asset Bowie, Md., thrift. After the stock market closed Friday, Washington Savings announced it would take a $2.8 million charge for its fiscal third quarter, which ended April 30, to reflect an increase in its loan-loss provision.
It also said its plan to tighten credit standards would lead to a decline in both loan volume and earnings, when compared to recent quarters.
Washington Savings' stock closed at $9.34, Monday down nearly 20% from Friday's close. The stock's volume was more than seven times its daily average. Washington Trust has not released earnings for its fiscal third quarter. Net income for its fiscal second quarter, which ended Jan. 31, rose 19% from the same period a year earlier, to $2.3 million.
