Washington Bancorp (WASH) AI Stock Analysis

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Washington Bancorp

(NASDAQ:WASH)

58Neutral

Washington Bancorp's overall score reflects its strong deposit growth and capital improvements, but is moderated by significant profitability challenges and technical weakness. While the company's robust dividend yield is attractive, the negative P/E ratio and recent financial losses necessitate caution. The earnings call offers optimism through strategic improvements, yet the need to address core profitability remains critical.

Washington Bancorp (WASH) vs. S&P 500 (SPY)

Market Cap

$536.46M

Dividend Yield8.08%

Average Volume (3M)228.73K

Price to Earnings (P/E)12.2

Beta (1Y)1.31

Revenue Growth-18.44%

EPS Growth-157.94%

CountryUS

Employees618

SectorFinancial

Sector Strength85

IndustryBanks - Regional

Share Statistics

EPS (TTM)-1.58

Shares Outstanding19,276,148

10 Day Avg. Volume194,154

30 Day Avg. Volume228,733

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap2.75

Enterprise Value/RevenueN/A

Enterprise Value/Gross Profit4.33

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$34.00

Price Target Upside22.17% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering3

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

Positive

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.

Balance Sheet

Positive

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.

Cash Flow

Positive

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.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
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

Technical Analysis Sentiment

Neutral

Last Price27.83

Price Trends

50DMA

29.36

Negative

100DMA

30.72

Negative

200DMA

31.02

Negative

Market Momentum

MACD

-0.57

Negative

RSI

47.84

Neutral

STOCH

89.79

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WASH, the sentiment is Neutral. The current price of 27.83 is above the 20-day moving average (MA) of 27.44, below the 50-day MA of 29.36, and below the 200-day MA of 31.02, indicating a neutral trend. The MACD of -0.57 indicates Negative momentum. The RSI at 47.84 is Neutral, neither overbought nor oversold. The STOCH value of 89.79 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FSBC	73 Outperform	$575.68M	11.94	13.39%	2.96%	17.32%	-18.15%
SMBC	73 Outperform	$593.52M	10.57	11.12%	1.71%	13.46%	8.31%
ORRF	68 Neutral	$560.78M	14.68	7.85%	3.20%	75.72%	-41.36%
HTBK	66 Neutral	$549.57M	13.09	6.12%	5.80%	5.10%	-24.91%
THFF	65 Neutral	$560.79M	10.23	10.02%	3.93%	16.84%	-1.03%
Sector *	63 Neutral	$12.38B	9.57	7.87%	79.17%	12.62%	-4.94%
WASH	58 Neutral	$536.46M	12.16	-5.43%	8.08%	-18.44%	-157.94%

* Financial Sector Average

Performance Comparison

WASH

Washington Bancorp

27.83

3.99

16.74%

THFF

First Financial Indiana

49.18

14.13

40.31%

HTBK

Heritage Commerce

8.92

1.33

17.52%

ORRF

Orrstown Financial Services

28.90

3.36

13.16%

SMBC

Southern Missouri Bancorp

52.63

12.48

31.08%

FSBC

Five Star

27.04

6.08

29.01%

Washington Bancorp Earnings Call Summary

Earnings Call Date:Apr 21, 2025

(Q1-2025)

% Change Since: 2.28%|

Next Earnings Date:Jul 28, 2025

Earnings Call Sentiment Neutral

The earnings call reflected a mix of positive developments such as significant deposit growth, improved capital and equity metrics, and increased net interest margin. However, these were offset by challenges like reduced loan amounts, decreased revenue from wealth and mortgage banking, and increased net charge-offs.

Q1-2025 Updates

Positive Updates

In-Market Deposit Growth

In-market deposits reached an all-time high of $5.13 billion, up by $195 million or 4% from the previous quarter.

Net Interest Margin Improvement

Net interest margin increased by 34 basis points to 2.29%, reflecting benefits from balance sheet restructuring.

Sale Leaseback Gain

Completed sale leaseback transactions resulted in a pre-tax net gain of $7 million recognized within non-interest income.

Capital and Equity Improvement

Total equity increased by $22 million, and CET1 improved by 56 basis points to 11.76%. Total risk-based capital improved by 66% to 13.13%.

Improved Loan to Deposit Ratio

Loan to deposit ratio decreased from 105.5% to 100.7%.

Negative Updates

Decrease in Total Loans

Total loans were down by $42 million or 1% from December 31, including a 1% reduction in both residential and commercial loans.

Decreased Wealth and Mortgage Banking Revenues

Wealth management revenues were down by $158,000 or 2%, and mortgage banking revenues were down by $544,000 or 19%.

Net Charge-Offs Increase

Net charge-offs totaled $2.3 million in the first quarter.

Non-Cash Pension Settlement Charge

A pre-tax non-cash pension settlement charge of $6.4 million was recognized within non-interest expenses.

Company Guidance

During the Washington Trust Bancorp, Inc.'s first-quarter 2025 conference call, the company provided detailed financial guidance and insights into its current performance metrics. The call highlighted a net income of $12.2 million or $0.63 per share, with an adjusted net income of $11.8 million or $0.61 per share after excluding infrequent transactions. Net interest income rose to $36.4 million, marking an 11% increase from the previous quarter, resulting in a margin of 2.29%. The company also reported a significant gain of $7 million from sale-leaseback transactions in non-interest income. Despite a 1% reduction in both residential and commercial loans due to higher paydowns, in-market deposits grew by $195 million or 4%, reaching a record high of $5.13 billion, while the loan-to-deposit ratio improved to 100.7%. The company’s CET1 capital ratio improved by 56 basis points to 11.76%, and total risk-based capital increased by 66 basis points to 13.13%. Additionally, the firm recognized a pre-tax non-cash pension settlement charge of $6.4 million as part of its expenses, with an effective tax rate projected at 22.4% for the full year. Washington Trust continues to focus on enhancing deposit strategies, maintaining strong asset quality, and navigating economic conditions with strategic foresight.

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.

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.