Washington Trust Bancorp (WASH)
NASDAQ:WASH
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Washington Bancorp
(NASDAQ:WASH)
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Rating:70Outperform
Price Target:
$37.00
â–²(11.55% Upside)
Action:UpgradedDate:02/25/26
The score is driven primarily by improving financial performance and a constructive earnings outlook (margin tailwinds, better funding mix), supported by attractive income/valuation. Offsetting factors are historical volatility in earnings/cash flows and mixed near-term technical momentum, plus expense pressure and residual CRE/office risk.
Positive Factors
Net interest margin expansion
Management projects durable NIM tailwinds from a one-time swap termination and ongoing organic expansion. Structural margin improvement, reinforced by a better funding mix, should support sustainable net interest income and profitability over the next several quarters absent major rate shocks.
Negative Factors
Earnings and cash flow volatility
Historic swings from profit to loss and uneven operating cash flow reduce predictability for capital allocation, dividends, and buybacks. Volatility makes stress-testing and planning harder, increasing the likelihood of reactive reserve or capital moves in tougher cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Net interest margin expansion
Management projects durable NIM tailwinds from a one-time swap termination and ongoing organic expansion. Structural margin improvement, reinforced by a better funding mix, should support sustainable net interest income and profitability over the next several quarters absent major rate shocks.
Read all positive factors
Washington Bancorp (WASH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$631.56M
Dividend Yield7.17%
Average Volume (3M)158.91K
Price to Earnings (P/E)8.8
Beta (1Y)1.02
Revenue Growth-27.82%
EPS Growth-159.63%
CountryUS
Employees618
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.83
Shares Outstanding19,039,948
10 Day Avg. Volume227,687
30 Day Avg. Volume158,914
Financial Highlights & Ratios
PEG Ratio-0.04
Price to Book (P/B)1.04
Price to Sales (P/S)1.49
P/FCF Ratio6.86
Enterprise Value/Market Cap2.04
Enterprise Value/Revenue3.38
Enterprise Value/Gross Profit6.23
Enterprise Value/Ebitda18.25
Forecast
1Y Price Target
$33.00Price Target Upside-0.51% Downside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)3.41
Revenue Forecast (FY)$247.38M
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 Ba...
How the Company Makes Money
Washington Bancorp generates revenue through various key streams, including interest income from loans and mortgages, fees from banking services, and investment income. The primary revenue driver is the interest earned on loans issued to customers...
Washington Bancorp Key Performance Indicators (KPIs)
Washington Bancorp Earnings Call Summary
Earnings Call Date:Jan 28, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 27, 2026
Earnings Call Sentiment Positive
The call presented multiple clear strengths — notable YoY earnings growth, meaningful NII and margin expansion, deposit growth and improved funding mix, strong mortgage originations for the year, wealth momentum, and solid credit metrics. Offsetting items include rising noninterest expenses, a seasonal decline in the mortgage pipeline, modest recent loan growth with residential runoff, reserves that are lower relative to peers, and a small but lingering office exposure. Management provided constructive guidance (NIM tailwinds, ~5% loan growth target) and disclosed targeted investments (institutional banking team, Pawtucket branch) that support future growth. On balance, positives outweigh the challenges.Positive Updates
Strong Quarterly and Yearly Earnings Growth
Net income of $16.0M in Q4 vs. $10.8M in prior quarter; EPS $0.83 vs. $0.56 QoQ. Adjusted EPS up 41% year-over-year.
Negative Updates
Noninterest Expense Pressure
Noninterest expense $38M in Q4, up 6% QoQ; full year adjusted noninterest expense up 7%. Salaries and benefits increased $973k (4%) in Q4 and other noninterest expenses rose $1.3M, including a $1.0M charitable contribution.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Quarterly and Yearly Earnings Growth
Net income of $16.0M in Q4 vs. $10.8M in prior quarter; EPS $0.83 vs. $0.56 QoQ. Adjusted EPS up 41% year-over-year.
Read all positive updates
Company Guidance
Management reiterated that the mid-2.50% NIM is sustainable (Q4 NIM 2.56%) and expects a 13-basis-point run‑rate benefit from a swap termination (＋9 bps in Q2, ＋4 bps in Q3) plus organic expansion of ~3–4 bps per quarter (assuming no Fed moves), implying a Q4 2026 NIM of about 2.78–2.82%; they see net loan growth of roughly 5% year‑over‑year (CRE growth ~4–5%, C&I faster), end‑market deposits up 1% QoQ and 9% YoY (wholesale funding down $165M or 21% since 9/30), total equity $544M (+$11M QoQ), CET1 ~12% and risk‑based ~13%, dividend steady at $0.56, and 850k shares authorized for buyback with ~582k remaining. For 2026 they penciled a full‑year tax rate of ~22%, Q1 salary/benefit expense up ~6% (other noninterest expense ~+5% YoY), a new branch and related staffing adding about $600k annually (late summer/fall), and a charitable foundation item modeled at $750k; operationally Q4 results included net income $16M ($0.83/sh), adjusted EPS +41% YoY, net interest income $40.7M (+5% QoQ, +24% YoY), noninterest income +5% QoQ (adjusted +15% YoY), noninterest expense $38M (+6% QoQ, FY adjusted +7%), mortgage banking revenue $3.3M with a $81M pipeline, FY mortgage originations $667M (+31% YoY), wealth AUA +4% QoQ/ +9% YoY with wealth revenue +5% (avg fees ~60 bps), and credit metrics showing normalized provisioning, nonaccruing loans 25 bps, past due loans 22 bps, net recoveries $160k and reserve coverage in the mid‑70s under CECL.Washington Bancorp Financial Statement Overview
Summary
Income Statement
71
Positive
Balance Sheet
63
Positive
Cash Flow
58
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 381.08M | 310.78M | 364.80M | 257.07M | 245.39M |
| Gross Profit | 206.98M | 96.15M | 190.04M | 219.89M | 233.65M |
| EBITDA | 67.41M | -34.06M | 61.33M | 95.50M | 102.49M |
| Net Income | 52.24M | -28.06M | 48.18M | 71.68M | 76.87M |
Balance Sheet | |||||
| Total Assets | 6.62B | 6.93B | 7.20B | 6.66B | 5.85B |
| Cash, Cash Equivalents and Short-Term Investments | 42.36M | 177.61M | 1.09B | 1.11B | 1.22B |
| Total Debt | 726.13M | 1.18B | 1.24B | 1.03B | 196.69M |
| Total Liabilities | 6.08B | 6.43B | 6.73B | 6.21B | 5.29B |
| Stockholders Equity | 543.58M | 499.73M | 472.69M | 453.67M | 564.81M |
Cash Flow | |||||
| Free Cash Flow | 82.64M | 53.67M | 26.55M | 106.87M | 97.32M |
| Operating Cash Flow | 84.64M | 57.67M | 31.60M | 113.01M | 100.81M |
| Investing Cash Flow | -375.00K | 231.30M | -550.84M | -999.04M | -240.90M |
| Financing Cash Flow | -51.08M | -265.27M | 491.00M | 825.96M | 116.31M |
Washington Bancorp Technical Analysis
Positive
33.17
Price Trends
33.49
Negative
31.03
Positive
29.21
Positive
Market Momentum
-0.26
Negative
50.37
Neutral
80.34
Negative
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 33.17 is above the 20-day moving average (MA) of 32.98, below the 50-day MA of 33.49, and above the 200-day MA of 29.21, indicating a neutral trend. The MACD of -0.26 indicates Negative momentum. The RSI at 50.37 is Neutral, neither overbought nor oversold. The STOCH value of 80.34 is Negative, 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 41 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $631.56M | 8.80 | 9.83% | 7.17% | -27.82% | -159.63% | |
70 Outperform | $479.80M | 8.13 | 14.72% | 1.53% | 24.90% | 28.06% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $613.18M | 8.37 | -4.98% | 3.89% | -28.00% | -174.60% | |
64 Neutral | $613.22M | 9.30 | 10.25% | 2.66% | 6.01% | 38.05% | |
62 Neutral | $599.09M | 11.36 | 11.96% | 0.84% | 8.26% | 94.53% | |
61 Neutral | $613.69M | 32.77 | 11.37% | 3.71% | 42.22% | 1207.84% |
* Financial Sector Average
WASH
Washington Bancorp
33.17
4.03
13.84%
FISI
Financial Institutions
31.23
6.76
27.63%
HIFS
Hingham Institution For Savings
274.78
33.53
13.90%
SHBI
Shore Bancshares
18.35
4.85
35.94%
CBNK
Capital Bancorp
29.31
0.98
3.47%
ALRS
Alerus Financial
24.16
5.98
32.91%
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.