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Washington Trust Bancorp (WASH)
NASDAQ:WASH
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Washington Bancorp
(NASDAQ:WASH)
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Rating:57Neutral
Price Target:
$30.00
â–²(6.08% Upside)
Washington Bancorp's overall stock score reflects a mix of financial challenges and some positive earnings call highlights. The most significant factor is the company's financial performance, which is under pressure due to declining profitability and high leverage. The earnings call provided some optimism with growth in key revenue streams, but ongoing challenges in wealth management and increased expenses weigh on the outlook. Technical analysis and valuation present a neutral to slightly negative view, with a high dividend yield offering some support.
Positive Factors
Revenue Growth
The growth in net income and key revenue streams such as wealth management and mortgage banking indicates a strengthening of core business operations, which can enhance long-term profitability and market competitiveness.
Loan and Deposit Growth
The increase in loans and deposits reflects a growing customer base and demand for the bank's services, which supports sustainable revenue generation and market share expansion.
Asset and Credit Quality
Maintaining strong asset and credit quality ensures financial stability and reduces the risk of significant loan losses, supporting long-term operational resilience.
Negative Factors
Declining Revenue
Declining revenues highlight challenges in sustaining growth and profitability, which can undermine competitive positioning and investor confidence over time.
High Leverage
High leverage increases financial risk and limits flexibility, potentially impacting the company's ability to invest in growth opportunities and weather economic downturns.
Challenges in Wealth Management
Persistent outflows in wealth management suggest difficulties in retaining clients and assets, which could weaken a key revenue stream and affect long-term growth prospects.
Washington Bancorp (WASH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$555.12M
Dividend Yield7.75%
Average Volume (3M)117.49K
Price to Earnings (P/E)12.2
Beta (1Y)1.24
Revenue Growth-24.82%
EPS Growth-156.55%
CountryUS
Employees618
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.68
Shares Outstanding19,155,214
10 Day Avg. Volume128,578
30 Day Avg. Volume117,491
Financial Highlights & Ratios
PEG Ratio0.12
Price to Book (P/B)1.08
Price to Sales (P/S)1.73
P/FCF Ratio10.02
Enterprise Value/Market Cap2.82
Enterprise Value/Revenue5.96
Enterprise Value/Gross Profit13.63
Enterprise Value/Ebitda-51.90
Forecast
1Y Price Target
$31.67Price Target Upside11.99% Upside
Rating ConsensusHold
Number of Analyst Covering4
Washington Bancorp Business Overview & Revenue Model
Company DescriptionWashington Trust Bancorp, Inc. operates as the bank holding company for The Washington Trust Company, of Westerly that offers various banking and financial services to individuals and businesses. The company operates in two segments, Commercial Banking and Wealth Management Services. The Commercial Banking segment provides various commercial and retail lending products, such as commercial real estate loans, including commercial mortgages and construction loans; commercial and industrial loans; residential real estate loans that consist of mortgage and homeowner construction loans; and consumer loans comprising home equity loans and lines of credit, personal installment loans, and loans to individuals secured by general aviation aircraft. This segment also offers deposit accounts, including interest-bearing and noninterest-bearing demand deposits, NOW and savings accounts, money market and retirement deposit accounts, and time deposits, as well as debit card, automated teller machine, telephone banking, internet banking, mobile banking, remote deposit capture, and other cash management services. The Wealth Management Services segment provides investment management; financial planning; personal trust and estate services, such as trustee, personal representative, custodian, and guardian; and settlement of decedents' estates, as well as institutional trust services comprising custody and fiduciary services. This segment serves personal and institutional clients. The company also operates as a licensed broker-dealer; and offers variable annuities and college savings plans. As of December 31, 2021, it had 10 branch offices located in southern Rhode Island, 13 branch offices located in the greater Providence area in Rhode Island, and 1 branch office located in southeastern Connecticut. Washington Trust Bancorp, Inc. was founded in 1800 and is headquartered in Westerly, Rhode Island.
How the Company Makes MoneyWashington Bancorp generates revenue through several key streams. Primarily, the company earns interest income from loans provided to consumers and businesses, including mortgages, personal loans, and commercial loans. Additionally, it generates fee income from account services, transaction fees, and wealth management services. The bank also benefits from net interest margin, which is the difference between the interest earned on loans and the interest paid on deposits. Significant partnerships with local businesses and community organizations enhance its customer base and contribute to its earnings through cross-selling financial products. Furthermore, Washington Bancorp may engage in investment activities and asset management, further diversifying its revenue sources.
Washington Bancorp Earnings Call Summary
Earnings Call Date:Jul 21, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 27, 2025
Earnings Call Sentiment Neutral
The earnings call presented a generally positive outlook with notable growth in net income, net interest income, and key revenue streams such as wealth management and mortgage banking. There was also healthy loan and deposit growth, and asset quality remained strong. However, challenges were noted in the form of declining residential loans, continuous net outflows in wealth management, increased noninterest expenses, and higher FHLB borrowings.Q2-2025 Updates
Positive Updates
Growth in Key Revenue Streams
Net income grew to $13.2 million or $0.68 per share from $12.2 million and $0.63 per share last quarter. Net interest income was $37.2 million, up by $763,000 or 2% on a linked quarter basis. Wealth management revenues increased by 2% to $10.1 million, and mortgage banking revenues increased by 32% to $3 million.
Loan and Deposit Growth
Total loans increased by $44 million or 1%. Total commercial loans increased by $57 million or 2%, while in-market deposits increased by $30 million or 1% from the end of the first quarter and by $407 million or 9% year-over-year.
Improvement in Noninterest Income
Noninterest income totaled $17.1 million in Q2. Excluding Q1 sale leaseback net gain of $7 million, adjusted noninterest income was up by $1.4 million or 9%.
Asset and Credit Quality
Asset and credit quality metrics remained solid with nonaccruing loans at 51 basis points and past due loans at 27 basis points compared with total loans. The allowance totaled $41.1 million or 80 basis points on total loans, providing NPL coverage of 157%.
Negative Updates
Decline in Residential Loans
Residential loans decreased by 1% in the second quarter.
Challenges in Wealth Management
There have been 13 consecutive quarters of net outflows in the wealth management unit, indicating ongoing challenges in this segment.
Increased Noninterest Expense
Noninterest expense totaled $36.5 million in Q2, excluding Q1's pension plan settlement charge of $6.4 million, adjusted noninterest expense was up by $770,000 or 2% on a quarter basis.
Increase in FHLB Borrowings
FHLB borrowings were up by $151 million, indicating higher reliance on this form of funding.
Company Guidance
During the second quarter of 2025, Washington Trust Bancorp Inc. reported solid financial performance with a net income of $13.2 million, or $0.68 per share, which represents an increase from the previous quarter's $12.2 million, or $0.63 per share. The company saw a growth in net interest income to $37.2 million, up by $763,000, and a net interest margin of 2.36%, an increase of 7 basis points. Noninterest income rose to $17.1 million, showing a 9% increase when adjusted for a previous quarter's sale leaseback gain. Wealth management revenue improved by 2% to $10.1 million, while mortgage banking revenue surged by 32% to $3 million. The end-of-period assets under administration were reported at $7.2 billion, up by 5%. Total loans increased by 1%, with commercial loans up by 2%, and in-market deposits rose by 1% from the previous quarter. The company maintained strong asset quality metrics, with nonaccruing loans at 51 basis points and past due loans at 27 basis points, alongside a provision for credit losses of $600,000.Washington Bancorp Financial Statement Overview
Summary
Washington Bancorp faces significant challenges with declining profitability and high leverage. Despite positive operating cash flows and some financial flexibility, inconsistent revenue growth and negative margins indicate operational inefficiencies.Income Statement
Washington Bancorp's income statement reveals a challenging period with declining profitability. The gross profit margin improved slightly in the TTM, but net losses continue to weigh heavily on performance. Revenue growth has been inconsistent, with recent declines highlighting instability in earnings. Negative EBIT and EBITDA margins in recent periods indicate operational inefficiencies and pressure on core banking activities.45
Neutral
Balance Sheet
The balance sheet of Washington Bancorp reflects moderate financial health. The debt-to-equity ratio remains high, indicating significant leverage and potential risk in a rising interest rate environment. However, the equity ratio shows a reasonable level of equity buffer against total assets. Return on equity is negative, reflecting net losses and challenging profitability dynamics.55
Neutral
Cash Flow
The cash flow statement shows positive operating cash flows, a critical strength amidst profit challenges. Free cash flow has grown, providing some financial flexibility. However, fluctuations in cash flow from investing and financing activities suggest potential volatility and the need for careful cash management.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 262.58M | 310.78M | 364.80M | 257.07M | 245.39M | 269.38M |
| Gross Profit | 114.89M | 96.15M | 190.04M | 219.89M | 233.65M | 214.54M |
| EBITDA | -30.17M | -34.06M | 61.33M | 95.50M | 102.49M | 93.25M |
| Net Income | -24.39M | -28.06M | 48.18M | 71.68M | 76.87M | 69.83M |
Balance Sheet | ||||||
| Total Assets | 6.75B | 6.93B | 7.20B | 6.66B | 5.85B | 5.71B |
| Cash, Cash Equivalents and Short-Term Investments | 48.14M | 177.61M | 1.09B | 1.11B | 1.22B | 1.10B |
| Total Debt | 1.06B | 1.18B | 1.24B | 1.03B | 196.69M | 648.26M |
| Total Liabilities | 6.22B | 6.43B | 6.73B | 6.21B | 5.29B | 5.18B |
| Stockholders Equity | 527.52M | 499.73M | 472.69M | 453.67M | 564.81M | 534.20M |
Cash Flow | ||||||
| Free Cash Flow | 62.09M | 53.67M | 26.55M | 106.87M | 97.32M | 33.07M |
| Operating Cash Flow | 64.33M | 57.67M | 31.60M | 113.01M | 100.81M | 36.48M |
| Investing Cash Flow | 446.47M | 231.30M | -550.84M | -999.04M | -240.90M | -264.24M |
| Financing Cash Flow | -450.61M | -265.27M | 491.00M | 825.96M | 116.31M | 291.57M |
Washington Bancorp Technical Analysis
Negative
28.28
Price Trends
28.28
Positive
27.88
Positive
28.43
Negative
Market Momentum
-0.05
Positive
43.57
Neutral
-1.93
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WASH, the sentiment is Negative. The current price of 28.28 is below the 20-day moving average (MA) of 28.97, above the 50-day MA of 28.28, and below the 200-day MA of 28.43, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 43.57 is Neutral, neither overbought nor oversold. The STOCH value of -1.93 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WASH.
Washington Bancorp Risk Analysis
Washington Bancorp disclosed 38 risk factors in its most recent earnings report. Washington Bancorp reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Washington Bancorp Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $554.66M | 13.17 | 7.87% | 3.75% | 40.69% | 373.32% | |
75 Outperform | $548.04M | 10.19 | 9.51% | 2.93% | 2.66% | 128.06% | |
71 Outperform | $514.75M | 11.92 | 11.39% | 1.35% | 22.14% | 12.06% | |
64 Neutral | $577.41M | 17.19 | 6.53% | 0.95% | 6.63% | 62.84% | |
60 Neutral | $545.71M | -10.55 | -3.07% | 4.54% | -29.94% | -178.36% | |
57 Neutral | $555.12M | 12.16 | -4.88% | 7.75% | -24.82% | -156.55% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
WASH
Washington Bancorp
28.28
0.10
0.35%
FISI
Financial Institutions
27.11
3.81
16.35%
HIFS
Hingham Institution For Savings
264.84
34.78
15.12%
SHBI
Shore Bancshares
16.40
3.32
25.38%
CBNK
Capital Bancorp
31.04
6.76
27.84%
ALRS
Alerus Financial
21.84
0.64
3.02%
Washington Bancorp Corporate Events
Business Operations and StrategyStock BuybackFinancial Disclosures
Washington Bancorp Resumes Stock Repurchases Amid Market Changes
Neutral
Aug 17, 2025
On July 22, 2025, Washington Trust Bancorp, Inc. conducted an earnings call for the quarter ending June 30, 2025, where executives discussed the company’s stock repurchase program, indicating a cautious approach based on market conditions. Subsequently, on August 13, 2025, the company announced at the SMID Cap Conference that it had resumed stock repurchases due to changes in market conditions, with further details to be disclosed in their upcoming quarterly report. This move reflects the company’s strategic response to market dynamics, potentially impacting its financial positioning and shareholder value.
The most recent analyst rating on (WASH) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on Washington Bancorp stock, see the WASH Stock Forecast page.
Business Operations and StrategyStock BuybackFinancial Disclosures
Washington Bancorp Resumes Stock Repurchases Amid Market Changes
Neutral
Aug 13, 2025
On July 22, 2025, Washington Trust Bancorp, Inc. conducted an earnings call for the quarter ending June 30, 2025, where executives discussed the company’s stock repurchase program, indicating a cautious approach based on market conditions. Subsequently, on August 13, 2025, the company announced at the SMID Cap Conference that it had resumed stock repurchases due to changes in market conditions, with further details to be disclosed in their upcoming quarterly report. This move reflects the company’s strategic response to market dynamics, potentially impacting its financial positioning and shareholder value.
The most recent analyst rating on (WASH) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on Washington Bancorp stock, see the WASH Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.