Washington Bancorp (WASH) AI Stock Analysis

• Market Cap: $542.85M
• Dividend Yield: 7.96%
• Average Volume (3M): 114.55K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 1.24
• Revenue Growth: -18.44%
• EPS Growth: -157.94%
• Country: US
• Employees: 618
• Sector: Financial
• Sector Strength: 79
• Industry: Banks - Regional
• EPS (TTM): 0.63
• Shares Outstanding: 19,291,107
• 10 Day Avg. Volume: 120,913
• 30 Day Avg. Volume: 114,546
• PEG Ratio: -1.73
• Price to Book (P/B): 1.79
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.61
• Enterprise Value/Market Cap: 3.19
• Enterprise Value/Revenue: 1.43
• Enterprise Value/Gross Profit: 11.02
• Enterprise Value/Ebitda: 144.08
• 1Y Price Target: $31.67
• Price Target Upside: 13.51% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 58 Neutral
• Price Target: ―

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.

Positive Factors

Dividend Stability

The recent balance sheet repositioning reduced NIM headwinds and provided WASH with a much-needed cushion to maintain the dividend.

Earnings Potential

Lower rates should offer benefits over time by reducing pressure on credit risk and deposit cost while encouraging a rebound in mortgage activity.

Financial Resilience

WASH has an exceptional track record of conservative underwriting and was a clear outperformer during the GFC.

Negative Factors

Competitive Challenges

Market demographics and competition make retaining and growing the bank's deposit base a difficult and expensive task.

Demographic Constraints

Demographic challenges limit deposit beta leverage, affecting the bank's ability to benefit from changes in interest rates.

Earnings Headwind

Lower rates are likely to remain a near-term earnings headwind while demographic challenges limit deposit beta leverage.

Washington Bancorp Business Overview & Revenue Model

Company Description

Washington 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 Money

Washington 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 shows strengths in revenue growth and a solid equity position. However, the recent profitability challenges, evidenced by a negative net income, pose risks. The company maintains resilience in cash flow generation but must address profitability concerns to improve its 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.

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.

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.

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
51.65M	31.60M	113.01M	100.81M	36.48M
	Investing Cash Flow
231.30M	-550.84M	-999.04M	-240.90M	-264.24M
	Financing Cash Flow
-265.27M	491.00M	825.96M	116.31M	291.57M

Washington Bancorp Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 27.90
• 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 27.9 is below the 20-day moving average (MA) of 28.22, below the 50-day MA of 27.92, and below the 200-day MA of 30.96, indicating a bearish trend. The MACD of -0.20 indicates Positive momentum. The RSI at 48.26 is Neutral, neither overbought nor oversold. The STOCH value of 66.27 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
FSBC	78 Outperform	$607.51M	12.52	13.78%	2.81%	17.35%	-13.53%
SMBC	74 Outperform	$609.97M	10.84	11.12%	1.70%	13.48%	8.31%
ORRF	68 Neutral	$608.67M	15.90	7.85%	3.33%	75.72%	-41.36%
HTBK	66 Neutral	$594.40M	14.16	6.12%	5.39%	5.10%	-24.91%
THFF	65 Neutral	$626.43M	11.42	10.02%	3.86%	16.84%	-1.03%
Sector *	64 Neutral	$12.85B	9.81	7.79%	78.20%	12.23%	-7.93%
WASH	58 Neutral	$542.85M	12.16	-5.43%	7.96%	-18.44%	-157.94%

Washington Bancorp Corporate Events

Washington Bancorp Repositions Balance Sheet for Growth

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.