Washington Bancorp (WASH) AI Stock Analysis

• Market Cap: $514.13M
• Dividend Yield: 8.14%
• Average Volume (3M): 161.16K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.26
• Revenue Growth: -27.77%
• EPS Growth: -159.63%
• Country: US
• Employees: 618
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.56
• Shares Outstanding: 19,155,214
• 10 Day Avg. Volume: 235,497
• 30 Day Avg. Volume: 161,159
• PEG Ratio: 0.12
• Price to Book (P/B): 1.08
• Price to Sales (P/S): 1.73
• P/FCF Ratio: 10.02
• Enterprise Value/Market Cap: 2.67
• Enterprise Value/Revenue: 5.23
• Enterprise Value/Gross Profit: 11.95
• Enterprise Value/Ebitda: -45.50
• 1Y Price Target: $28.50
• Price Target Upside: 3.60% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3

• Rating: 52 Neutral
• Price Target: $28.00 ▲(1.78% Upside)

Washington Bancorp's overall stock score reflects significant financial challenges, including declining profitability and high leverage. While there are positive aspects such as cash flow generation and strategic investments, these are overshadowed by operational inefficiencies and valuation concerns. The high dividend yield provides some appeal, but risks remain substantial.

Positive Factors

Strategic Investments

The acquisition of assets from Lighthouse Financial Management enhances Washington Bancorp's wealth management segment, potentially increasing revenue and client base, which is crucial for long-term growth and competitiveness in the financial services industry.

Net Interest Income Growth

The growth in net interest income indicates effective management of interest margins and loan portfolios, which is critical for sustaining profitability and supporting future business expansion in a competitive banking environment.

Leadership Additions

The addition of an experienced leader in commercial banking can enhance strategic direction and operational efficiency, potentially driving growth and improving competitive positioning in the commercial banking sector.

Negative Factors

Declining Profitability

The decline in net income reflects challenges in maintaining profitability amid operational inefficiencies and market pressures, which could impact the company's ability to reinvest in growth and sustain shareholder returns.

High Leverage

High leverage poses financial risks, especially with declining profitability. It can strain cash flows and limit financial flexibility, potentially affecting the company's ability to navigate economic downturns or invest in growth opportunities.

Credit Loss Provisions

Increased credit loss provisions indicate potential weaknesses in the loan portfolio, which could lead to further financial strain and necessitate more conservative lending practices, impacting future revenue growth.

Washington Bancorp Business Overview & Revenue Model

Company Description

Washington Bancorp (WASH) is a financial institution based in the United States, primarily engaged in providing a wide range of banking services to individuals, businesses, and communities. The company operates through various segments, including retail banking, commercial banking, and wealth management. Core products and services offered by Washington Bancorp include personal and business loans, deposit accounts, mortgage services, and investment advisory services, aiming to meet the diverse financial needs of its customers.

How the Company Makes Money

Washington 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 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.

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.

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.

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

• Technical Analysis Sentiment: Neutral
• Last Price: 27.51
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 27.51 is below the 20-day moving average (MA) of 27.65, below the 50-day MA of 28.43, and below the 200-day MA of 28.24, indicating a bearish trend. The MACD of -0.50 indicates Positive momentum. The RSI at 48.53 is Neutral, neither overbought nor oversold. The STOCH value of 63.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for WASH.

Washington Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CBNK	71 Outperform	$492.95M	11.10	13.36%	1.41%	22.14%	12.06%
ALRS	71 Outperform	$533.07M	12.49	9.19%	3.79%	40.69%	373.32%
HIFS	68 Neutral	$633.01M	14.14	10.23%	0.83%	8.26%	94.53%
SHBI	68 Neutral	$531.34M	9.87	9.88%	3.02%	2.66%	128.06%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FISI	55 Neutral	$535.45M	―	-6.53%	4.62%	-29.94%	-178.36%
WASH	52 Neutral	$514.13M	―	-4.73%	8.14%	-27.77%	-159.63%

Washington Bancorp Corporate Events

Washington Trust Bancorp Reports Q3 2025 Earnings

Washington Trust Bancorp, Inc., the oldest community bank in the U.S. and the largest state-chartered bank in Rhode Island, provides a range of financial services including commercial and mortgage banking, personal banking, and wealth management across New England. In its third quarter of 2025, Washington Trust reported a net income of $10.8 million, or $0.56 per diluted share, marking a decrease from the previous quarter’s $13.2 million. Despite this decline, the company saw growth in net interest income, wealth management, and mortgage banking revenues, alongside a significant increase in in-market deposits.

Washington Bancorp Reports Q3 2025 Charge-Offs Impact

Washington Trust Bancorp, Inc. announced that its third quarter 2025 financial performance will be negatively impacted by $11.3 million in charge-offs related to two commercial loan relationships. The first loan, a shared national credit to a telecom infrastructure contractor, resulted in an $8.3 million charge-off following the contractor’s Chapter 11 bankruptcy filing. The second loan, a commercial real estate loan secured by a Class B office property, was sold at the end of September, resulting in a $3.0 million charge-off. Consequently, the company expects to report a significant reduction in commercial nonaccrual loans from $14.0 million to $1.0 million as of September 30, 2025.

The most recent analyst rating on (WASH) stock is a Hold with a $29.00 price target. To see the full list of analyst forecasts on Washington Bancorp stock, see the WASH Stock Forecast page.

Washington Bancorp Resumes Stock Repurchases Amid Market Changes

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.

Washington Bancorp Resumes Stock Repurchases Amid Market Changes

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.

Washington Trust Bancorp Reports Strong Q2 2025 Results

Washington Trust Bancorp, Inc., the oldest community bank in the nation and the largest state-chartered bank headquartered in Rhode Island, offers a comprehensive range of financial services including commercial banking, mortgage banking, personal banking, and wealth management across the Northeast region of the United States. In its latest earnings report for the second quarter of 2025, Washington Trust Bancorp announced a net income of $13.2 million, or $0.68 per diluted share, marking an increase from the previous quarter’s $12.2 million, or $0.63 per diluted share. This growth was attributed to an uptick in net interest income, wealth management revenue, and mortgage banking revenue, reflecting the company’s diversified business model.

Washington Trust Bancorp’s Earnings Call Highlights Growth and Challenges

Washington Trust Bancorp’s recent earnings call conveyed a cautiously optimistic sentiment, highlighting positive financial performance indicators such as increased net income, net interest income, and mortgage banking revenues. However, the company also acknowledged challenges, including a decline in residential loans and ongoing net outflows in the wealth management unit. The overall tone of the call was one of maintaining growth momentum while addressing these existing challenges.