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Washington Bancorp
(NASDAQ:WASH)
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Rating:76Outperform
Price Target:
$44.00
▲(14.61% Upside)
Action:Upgraded
Date:08/07/26
WASH scores well primarily on improved financial performance (rebuilt profitability and strong free cash flow conversion) and a constructive technical uptrend (price above key moving averages with positive momentum). Valuation is supportive due to a reasonable P/E and a high dividend yield. The earnings outlook is positive with explicit NIM and growth guidance, tempered by contained credit noise (single CRE past-due), deposit pricing pressure, and higher near-term expenses.
Positive Factors
Cash generation
Very strong free cash flow and near‑one-to-one conversion of net income to cash indicate durable earnings quality. This supports dividends, branch investment and digital rollout without heavy external financing, improving funding flexibility and resilience over the next several quarters.
Negative Factors
Revenue volatility
Large swings in reported revenue reduce visibility into recurring top‑line generation. Even with solid margins and cash conversion, volatile revenue complicates forecasting of earnings durability, planning for expense inflation and the sustainability of investment-funded growth over 2–6 months.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Very strong free cash flow and near‑one-to-one conversion of net income to cash indicate durable earnings quality. This supports dividends, branch investment and digital rollout without heavy external financing, improving funding flexibility and resilience over the next several quarters.
Read all positive factors
Washington Bancorp Key Performance Indicators (KPIs)
Any
Income Before Taxes by Segment
Measures pre-tax profitability across business units so investors can see which operations produce core earnings before tax effects and how provisioning, expenses, or one-time items affect segment-level strength.
Measures pre-tax profitability across business units so investors can see which operations produce core earnings before tax effects and how provisioning, expenses, or one-time items affect segment-level strength.
Data provided by:
The Fly
The FlyWashington Bancorp (WASH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$741.04M
Dividend Yield5.82%
Average Volume (3M)189.02K
Price to Earnings (P/E)13.2
Beta (1Y)0.93
Revenue Growth27.43%
EPS GrowthN/A
CountryUS
Employees642
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)2.91
Shares Outstanding19,074,322
10 Day Avg. Volume186,654
30 Day Avg. Volume189,017
Financial Highlights & Ratios
PEG Ratio-0.04
Price to Book (P/B)1.04
Price to Sales (P/S)1.49
P/FCF Ratio11.21
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$36.75Price Target Upside-4.27% Downside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)3.17
Revenue Forecast (FY)$242.87M
Washington Bancorp Business Overview & Revenue Model
Company Description
Washington Trust Bancorp, Inc. functions as the holding company for The Washington Trust Company, delivering a diverse range of banking and financial solutions to individuals and corporate clients. The company is structured into two primary divisi...
How the Company Makes Money
Washington Trust Bancorp primarily makes money through (1) net interest income and (2) noninterest income. Net interest income is generated by earning interest on interest-earning assets (such as commercial and consumer loans, residential mortgage...
Washington Bancorp Earnings Call Summary
Earnings Call Date:Jul 20, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 26, 2026
Earnings Call Sentiment Positive
The call conveyed a broadly positive operational and financial performance: core earnings, NII, margin expansion, PPNR and balance sheet growth were strong, institutional banking and C&I growth are notable opportunities, capital and liquidity remain supportive, and management provided constructive margin guidance. Headwinds include CRE payoffs and a single CRE past-due account, declines in wholesale funding, modest expense inflation from hiring and branch rollouts, and some deposit-pricing pressure. Overall, the positives—profitability gains, margin improvement, loan and deposit growth, strategic investments and strengthened capital—outweigh the contained near-term challenges.Positive Updates
Net Income and EPS Growth
Net income of $16.0M, or $0.83 per share, up $3.4M (+$0.17 per share) from the prior quarter, reflecting higher profitability.
Negative Updates
Increase in Past-Due Loans (Single CRE Exposure)
Past-due loans rose to 81 bps of total loans from 33 bps QoQ; management attributed the increase to a single commercial real estate office loan (previously placed on nonaccrual) but it increased near-term past-due metrics.
Read all updates
Q2-2026 Updates
Positive
Negative
Net Income and EPS Growth
Net income of $16.0M, or $0.83 per share, up $3.4M (+$0.17 per share) from the prior quarter, reflecting higher profitability.
Read all positive updates
Company Guidance
Management gave specific forward guidance: net interest margin is expected to be ~2.75% in Q3 and ~2.80% in Q4 (including the final month benefit from the terminated swap of roughly $700k / ~4 bps in Q3 after Q2 captured $1.4M / 9 bps), the company is sticking with mid‑single‑digit overall loan growth for the year (with C&I and Institutional Banking leading and the Institutional team expected to self‑fund ~35% of production), Q3 noninterest expenses are expected to rise about $1.0M (keeping quarterly noninterest expense just under ~$39M), the full‑year 2026 effective tax rate is expected to be ~21.5%, the dividend remains $0.56/share, and the bank plans to open its 30th branch later this year and roll out enhanced small‑business digital banking this fall.Washington Bancorp Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
63
Positive
Cash Flow
81
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 381.81M | 381.08M | 310.78M | 364.80M | 257.07M | 245.39M |
| Gross Profit | 220.79M | 206.98M | 96.15M | 190.04M | 219.89M | 233.65M |
| EBITDA | 73.94M | 71.63M | -34.06M | 61.33M | 95.50M | 102.49M |
| Net Income | 55.40M | 52.24M | -28.06M | 48.18M | 71.68M | 76.87M |
Balance Sheet | ||||||
| Total Assets | 6.55B | 6.62B | 6.93B | 7.20B | 6.66B | 5.85B |
| Cash, Cash Equivalents and Short-Term Investments | 26.44M | 42.36M | 177.61M | 1.09B | 1.11B | 1.22B |
| Total Debt | 516.62M | 726.13M | 1.18B | 1.24B | 1.03B | 196.69M |
| Total Liabilities | 5.99B | 6.08B | 6.43B | 6.73B | 6.21B | 5.29B |
| Stockholders Equity | 553.52M | 543.58M | 499.73M | 472.69M | 453.67M | 564.81M |
Cash Flow | ||||||
| Free Cash Flow | 89.28M | 50.55M | 53.67M | 26.55M | 106.87M | 97.32M |
| Operating Cash Flow | 93.18M | 52.55M | 57.67M | 31.60M | 113.01M | 100.81M |
| Investing Cash Flow | 148.63M | -375.00K | 231.30M | -550.84M | -999.04M | -240.90M |
| Financing Cash Flow | -282.14M | -51.08M | -265.27M | 491.00M | 825.96M | 116.31M |
Washington Bancorp Technical Analysis
Positive
38.39
Price Trends
36.08
Positive
34.12
Positive
31.89
Positive
Market Momentum
0.92
Positive
55.23
Neutral
25.99
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 38.39 is above the 20-day moving average (MA) of 38.36, above the 50-day MA of 36.08, and above the 200-day MA of 31.89, indicating a bullish trend. The MACD of 0.92 indicates Positive momentum. The RSI at 55.23 is Neutral, neither overbought nor oversold. The STOCH value of 25.99 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 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 |
|---|---|---|---|---|---|---|---|
84 Outperform | $731.41M | 5.39 | 27.40% | 0.29% | 40.09% | 327.11% | |
76 Outperform | $741.04M | 13.24 | 10.18% | 5.83% | 27.43% | ― | |
75 Outperform | $844.24M | 10.89 | 14.12% | 2.87% | 0.24% | 12.12% | |
75 Outperform | $707.33M | 12.23 | 10.86% | 3.58% | 0.41% | 68.29% | |
73 Outperform | $795.60M | 11.86 | 11.10% | 2.12% | 2.79% | 22.84% | |
72 Outperform | $737.98M | 9.40 | 12.56% | ― | 16.80% | 24.02% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
WASH
Washington Bancorp
38.52
11.57
42.90%
SHBI
Shore Bancshares
23.60
8.04
51.71%
IBCP
Independent Bank
37.90
7.14
23.21%
PFIS
Peoples Financial Services
69.45
20.88
42.98%
CARE
Carter Bankshares
31.72
13.67
75.77%
TCBX
Third Coast Bancshares
44.28
5.78
15.01%
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.