Education
About Us
Working with TipRanks
Follow Us
Washington Trust Bancorp (WASH)
NASDAQ:WASH
Top Page
Washington Bancorp
(NASDAQ:WASH)
54Neutral
Washington Bancorp (WASH) vs. S&P 500 (SPY)
Market Cap
$563.25M
Dividend Yield7.66%
Average Volume (3M)169.56K
Price to Earnings (P/E)12.2
Beta (1Y)1.50
Revenue Growth-14.04%
EPS Growth-155.40%
CountryUS
Employees665
SectorFinancial
Sector Strength77
IndustryBanking
Share Statistics
EPS (TTM)-1.57
Shares Outstanding19,276,148
10 Day Avg. Volume133,232
30 Day Avg. Volume169,561
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)5.73
Price to Cash Flow (P/CF)7.50
P/FCF Ratio3.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$35.50Price Target Upside21.74% Upside
Rating ConsensusHold
Number of Analyst Covering2
Washington Bancorp Business Overview & Revenue Model
Company DescriptionWashington Bancorp (WASH) is a financial holding company that operates in the banking sector, providing a range of financial products and services primarily through its subsidiary banks. The company offers personal and commercial banking services, including checking and savings accounts, loans, mortgages, and investment services. It serves a diverse customer base, including individuals, small businesses, and larger corporations, predominantly in the Washington area.
How the Company Makes MoneyWashington Bancorp makes money primarily through the interest income generated from its lending activities, such as personal loans, mortgages, and commercial loans. The company also earns revenue from fees associated with its banking and financial services, including account maintenance fees, transaction fees, and fees for specialized financial products or advisory services. Additionally, Washington Bancorp may generate income through investment activities, leveraging its financial assets to earn returns. Significant partnerships with other financial institutions or service providers can also contribute to its earnings, enhancing its product offerings or expanding its market reach.
Washington Bancorp Financial Statement Overview
Summary
Washington Bancorp exhibits strengths in revenue growth and maintaining a solid equity position. However, recent profitability challenges, as evidenced by negative net income, pose a risk to financial performance. The company shows resilience in cash flow generation, but must address profitability concerns to strengthen its overall financial health.Income Statement
Washington Bancorp's income statement shows mixed performance. The gross profit margin remains strong, indicating efficient cost management relative to revenue. However, the net income turned negative in the latest year, highlighting profitability issues. Revenue growth over the past year was significant, but the net profit margin and EBIT margin are concerning due to recent losses.62
Positive
Balance Sheet
The balance sheet reflects a stable equity position with no debt in the latest report, which is positive for financial stability. The equity ratio is healthy, showing a strong equity base relative to total assets. However, the return on equity has weakened due to the negative net income, indicating reduced profitability on shareholders' investments.70
Positive
Cash Flow
Cash flow analysis shows that Washington Bancorp maintains a positive operating cash flow, which is vital for ongoing operations. The free cash flow has grown over the recent period, indicating improved cash generation. However, the operating cash flow to net income ratio has been affected by the negative net income, emphasizing the need for improved profitability.68
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 340.68M | 190.04M | 218.59M | 228.83M | 226.89M | Gross Profit |
| 340.68M | 363.41M | 218.59M | 228.83M | 226.89M | EBIT |
| 334.92M | 72.65M | 129.65M | 98.19M | 89.16M | EBITDA |
| 0.00 | 61.33M | 95.50M | 102.49M | 93.25M | Net Income Common Stockholders |
| -28.06M | 48.18M | 71.68M | 76.87M | 69.83M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 25.52M | 90.18M | 1.11B | 1.22B | 1.10B | Total Assets |
| 6.93B | 7.20B | 6.66B | 5.85B | 5.71B | Total Debt |
| 1.18B | 1.24B | 1.03B | 196.69M | 648.26M | Net Debt |
| 1.07B | 1.16B | 916.75M | 21.43M | 454.11M | Total Liabilities |
| 6.43B | 6.73B | 6.21B | 196.69M | 648.26M | Stockholders Equity |
| 499.73M | 472.69M | 453.67M | 564.81M | 534.20M |
| Cash Flow | Free Cash Flow | |||
| 39.14M | 26.55M | 106.87M | 97.32M | 33.07M | Operating Cash Flow |
| 39.14M | 31.60M | 113.01M | 100.81M | 36.48M | Investing Cash Flow |
| -70.84M | -550.84M | -999.04M | -240.90M | -264.24M | Financing Cash Flow |
| 32.09M | 491.00M | 825.96M | 116.31M | 291.57M |
Washington Bancorp Technical Analysis
Negative
29.16
Price Trends
31.74
Negative
33.38
Negative
30.84
Negative
Market Momentum
-0.74
Positive
28.83
Positive
10.13
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 29.16 is below the 20-day moving average (MA) of 31.50, below the 50-day MA of 31.74, and below the 200-day MA of 30.84, indicating a bearish trend. The MACD of -0.74 indicates Positive momentum. The RSI at 28.83 is Positive, neither overbought nor oversold. The STOCH value of 10.13 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
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $2.60B | 13.44 | 6.52% | 3.75% | 6.21% | -16.59% | |
74 Outperform | $8.15B | 11.69 | 8.54% | 3.13% | 5.86% | -10.72% | |
67 Neutral | $959.66M | 13.97 | 5.68% | 5.02% | 7.79% | -8.83% | |
64 Neutral | $13.80B | 10.64 | 9.23% | 4.22% | 17.66% | -7.66% | |
61 Neutral | $512.79M | 18.74 | 6.72% | 1.05% | 14.02% | 5.59% | |
54 Neutral | $563.25M | 12.16 | -5.77% | 7.66% | -14.04% | -155.40% |
* Financial Sector Average
Performance Comparison
WASH
Washington Bancorp
29.16
5.10
21.20%
BRKL
Brookline Bancorp
10.77
1.58
17.19%
HIFS
Hingham Institution For Savings
234.02
68.16
41.09%
INDB
Independent Bank
61.04
12.34
25.34%
WBS
Webster Financial
48.72
1.64
3.48%
Washington Bancorp Earnings Call Summary
Earnings Call Date: Jan 29, 2025 | % Change Since: -10.22% | Next Earnings Date: Apr 28, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a strategically challenging quarter with a significant net loss due to balance sheet repositioning. However, the capital raise and improved financial metrics indicate potential growth and stronger future performance. Credit quality remains strong, and new leadership is expected to drive deposit growth. While the immediate impacts are negative, the long-term outlook is cautiously optimistic.Highlights
Strategic Capital Raise
Washington Trust Bancorp, Inc. announced a December capital raise of $70.5 million, allowing for future growth and investment. This strategic move is expected to favorably impact future revenues despite resulting in a short-term loss.
Improved Financial Metrics
Net interest income increased by $674,000 or 2%, and the net interest margin improved by 10 basis points to 1.95%.
Strong Asset and Credit Quality
Non-accruing loans decreased from 56 basis points to 45 basis points, and past due loans decreased from 37 basis points to 23 basis points.
New Leadership in Retail Banking
Michelle Kile was hired as the new Head of Retail Banking, expected to enhance deposit growth strategies.
Lowlights
Significant Net Loss
The fourth quarter reported a net loss of $60.8 million or $3.46 per share, attributed to balance sheet repositioning asset losses.
Residential Loan Decrease
Total residential loans decreased by $403 million or 16%, primarily due to the reclassification of $345 million to loans held for sale.
Slight Decline in Noninterest Income
Adjusted noninterest income declined by $229,000 or 1%, with mortgage banking revenues down by $18,000 or 1%.
Company Guidance
During the Washington Trust Bancorp, Inc. fourth-quarter 2024 conference call, several key financial metrics and strategic initiatives were discussed. The company reported a net loss of $60.8 million, or $3.46 per share, primarily due to a balance sheet repositioning which involved a capital raise of $70.5 million, and selling and reinvesting in securities. Excluding these asset losses, adjusted net income was $10.4 million, or $0.59 per share. Net interest income rose by 2% to $32.9 million with a margin of 1.95%, reflecting a 10 basis point increase. Wealth management revenues were slightly up, totaling $10 million, while mortgage banking revenues were $2.8 million. Noninterest expenses decreased by 1% to $34.3 million. The company also highlighted a positive outlook for 2025, projecting a net interest margin increase to 2.45%-2.50% by the fourth quarter, with average earning assets expected to be between $6.3 billion to $6.4 billion. Additionally, Washington Trust announced the appointment of Michelle Kile as the new Head of Retail Banking to drive deposit growth strategies.Washington Bancorp Corporate Events
Business Operations and Strategy
Washington Bancorp Repositions Balance Sheet for Growth
Positive
Dec 20, 2024
Washington Trust Bancorp, Inc. announced a strategic repositioning of its balance sheet to support organic growth and capital generation. This involves selling low-yield assets and reinvesting in higher-yield securities, resulting in a short-term net loss but strengthening the bank’s financial position and improving profitability prospects for 2025.
Private Placements and Financing
Washington Bancorp Announces $55M Stock Offering
Neutral
Dec 12, 2024
Washington Trust Bancorp, Inc. announced an underwritten public offering of $55 million in common stock, with a potential 15% additional option to the underwriters. The proceeds are intended for supporting organic growth and capital generation, including investments in the bank and optimizing its balance sheet through various financial strategies. BofA Securities is managing the offering as the sole book-running manager.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.