Education
About Us
Working with TipRanks
Follow Us
Washington Trust Bancorp (WASH)
NASDAQ:WASH
Top Page
Washington Bancorp
(NASDAQ:WASH)
Rating:60Neutral
Price Target:
$30.00
â–²(0.03% Upside)
Positive Factors
Dividend Stability
The recently completed capital raise and balance sheet repositioning safely secures dividend coverage.
Financial Resilience
WASH has an exceptional track record of conservative underwriting and was a clear outperformer during the GFC.
Interest Rate Sensitivity
WASH will be an outsized beneficiary when rates fall, with all securities listed as AFS.
Negative Factors
Competitive Challenges
Market demographics and competition make retaining and growing the bank's deposit base a difficult and expensive task.
Earnings Pressure
Lower rates are likely to remain a near-term earnings headwind while demographic challenges limit deposit beta leverage.
Washington Bancorp (WASH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$574.46M
Dividend Yield7.47%
Average Volume (3M)137.81K
Price to Earnings (P/E)12.2
Beta (1Y)1.26
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. Volume130,908
30 Day Avg. Volume137,807
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 Cap2.73
Enterprise Value/Revenue5.84
Enterprise Value/Gross Profit14.50
Enterprise Value/Ebitda-48.53
Forecast
1Y Price Target
$31.67Price Target Upside5.60% 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 is experiencing financial challenges with declining profitability and high leverage. Positive operating cash flows provide some resilience, but inconsistent revenue growth and negative EBIT and EBITDA margins highlight 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 | 268.33M | 310.78M | 364.80M | 257.07M | 245.39M | 269.38M |
| Gross Profit | 107.99M | 96.15M | 190.04M | 219.89M | 233.65M | 214.54M |
| EBITDA | -32.27M | -34.06M | 61.33M | 95.50M | 102.49M | 93.25M |
| Net Income | -26.82M | -28.06M | 48.18M | 71.68M | 76.87M | 69.83M |
Balance Sheet | ||||||
| Total Assets | 6.59B | 6.93B | 7.20B | 6.66B | 5.85B | 5.71B |
| Cash, Cash Equivalents and Short-Term Investments | 190.37M | 177.61M | 1.09B | 1.11B | 1.22B | 1.10B |
| Total Debt | 911.40M | 1.18B | 1.24B | 1.03B | 196.69M | 648.26M |
| Total Liabilities | 6.06B | 6.43B | 6.73B | 6.21B | 5.29B | 5.18B |
| Stockholders Equity | 521.68M | 499.73M | 472.69M | 453.67M | 564.81M | 534.20M |
Cash Flow | ||||||
| Free Cash Flow | 60.71M | 53.67M | 26.55M | 106.87M | 97.32M | 33.07M |
| Operating Cash Flow | 64.17M | 57.67M | 31.60M | 113.01M | 100.81M | 36.48M |
| Investing Cash Flow | 616.97M | 231.30M | -550.84M | -999.04M | -240.90M | -264.24M |
| Financing Cash Flow | -666.49M | -265.27M | 491.00M | 825.96M | 116.31M | 291.57M |
Washington Bancorp Technical Analysis
Positive
29.99
Price Trends
28.65
Positive
28.00
Positive
29.48
Positive
Market Momentum
0.61
Negative
59.10
Neutral
63.72
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WASH, the sentiment is Positive. The current price of 29.99 is above the 20-day moving average (MA) of 29.23, above the 50-day MA of 28.65, and above the 200-day MA of 29.48, indicating a bullish trend. The MACD of 0.61 indicates Negative momentum. The RSI at 59.10 is Neutral, neither overbought nor oversold. The STOCH value of 63.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (68)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $573.45M | 13.43 | 9.19% | 3.59% | 40.69% | 373.32% | |
75 Outperform | $565.17M | 12.73 | 13.36% | 1.23% | 22.14% | 12.06% | |
72 Outperform | $566.42M | 10.52 | 9.88% | 2.83% | 2.66% | 128.06% | |
69 Neutral | $580.75M | 17.36 | 7.82% | 0.95% | 6.63% | 62.84% | |
68 Neutral | $17.80B | 11.87 | 10.23% | 3.74% | 9.69% | 1.18% | |
60 Neutral | $574.46M | 12.16 | -4.88% | 7.47% | -24.82% | -156.55% | |
60 Neutral | $552.56M | 8.52 | -6.53% | 4.44% | -29.94% | -178.36% |
* Financial Sector Average
Performance Comparison
WASH
Washington Bancorp
29.99
0.99
3.41%
FISI
Financial Institutions
27.45
3.58
15.00%
HIFS
Hingham Institution For Savings
266.37
26.55
11.07%
SHBI
Shore Bancshares
16.95
3.64
27.35%
CBNK
Capital Bancorp
34.08
9.85
40.65%
ALRS
Alerus Financial
22.58
2.10
10.25%
Washington Bancorp Corporate Events
Stock BuybackBusiness Operations and StrategyFinancial 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.
Stock BuybackBusiness Operations and StrategyFinancial 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.
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.