Washington Bancorp (WASH) AI Stock Analysis

• Market Cap: $533.36M
• Dividend Yield: 7.97%
• Average Volume (3M): 163.11K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.05
• Revenue Growth: -27.82%
• EPS Growth: -159.63%
• Country: US
• Employees: 618
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.56
• Shares Outstanding: 19,034,935
• 10 Day Avg. Volume: 117,412
• 30 Day Avg. Volume: 163,113
• 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: 2.57
• Enterprise Value/Revenue: 5.23
• Enterprise Value/Gross Profit: 11.95
• Enterprise Value/Ebitda: -47.19
• 1Y Price Target: $28.50
• Price Target Upside: 1.71% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3
• EPS Forecast (FY): 2.59
• Revenue Forecast (FY): $219.64M

• Rating: 52 Neutral
• Price Target: $28.00 ▼(-0.07% Downside)

Washington Bancorp's overall stock score reflects significant financial challenges, including declining revenues and profitability, and high leverage. While there are positive developments in core business performance and strategic investments, these are countered by risks such as elevated credit loss provisions and valuation challenges. The technical analysis and valuation metrics further highlight the need for caution.

Positive Factors

Strategic Investments

The acquisition of assets from Lighthouse Financial Management enhances Washington Bancorp's wealth management capabilities, contributing to long-term growth and diversification of revenue streams.

Increase in Net Interest Income

The rise in net interest income indicates improved profitability from core banking operations, supporting long-term financial stability and operational efficiency.

Growth in Non-Interest Income

Growth in non-interest income, including wealth management revenues, diversifies income sources and reduces reliance on traditional banking, enhancing resilience against interest rate fluctuations.

Negative Factors

Decline in Net Income

The decline in net income reflects challenges in maintaining profitability, which could impact the company's ability to invest in growth and return capital to shareholders.

Elevated Provision for Credit Losses

High provisions for credit losses indicate potential weaknesses in loan portfolio quality, posing risks to future earnings and financial health.

Challenges in Office Property Valuation

Difficulties in appraising office properties highlight vulnerabilities in asset valuation, potentially leading to further financial write-downs and impacting asset quality.

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 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 financial challenges, including declining revenues and profitability, high leverage, and operational inefficiencies. Despite some positive signs in cash flow generation, the company needs to address its debt levels and improve operational performance to enhance financial stability.

Income Statement

Washington Bancorp's income statement shows a concerning trend with declining revenue and negative profit margins in the TTM period. The gross profit margin has decreased significantly from previous years, and the net profit margin has turned negative, indicating a loss. Revenue growth has been negative, reflecting challenges in generating sales. The EBIT and EBITDA margins have also turned negative, highlighting operational inefficiencies.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, which has increased over time, indicating a reliance on debt financing. This poses a financial risk, especially with declining profitability. The return on equity has turned negative in the TTM period, reflecting poor returns for shareholders. However, the equity ratio remains stable, suggesting a reasonable proportion of equity in the asset base.

Cash Flow

Cash flow analysis shows a slight improvement in free cash flow growth in the TTM period. The operating cash flow to net income ratio is low, indicating challenges in converting income into cash. However, the free cash flow to net income ratio is relatively high, suggesting efficient cash generation relative to net income.

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	-29.09M	-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: Positive
• Last Price: 28.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 28.02 is above the 20-day moving average (MA) of 27.46, below the 50-day MA of 28.12, and below the 200-day MA of 28.08, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 53.50 is Neutral, neither overbought nor oversold. The STOCH value of 78.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WASH.

Washington Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALRS	72 Outperform	$531.54M	10.10	11.37%	3.76%	42.22%	1207.84%
SHBI	71 Outperform	$542.18M	9.52	10.25%	2.93%	6.01%	38.05%
HIFS	68 Neutral	$621.11M	13.88	10.23%	0.89%	8.26%	94.53%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CBNK	67 Neutral	$468.07M	9.58	14.72%	1.57%	24.90%	28.06%
FISI	60 Neutral	$578.95M	-11.89	-4.98%	4.16%	-28.00%	-174.60%
WASH	52 Neutral	$533.36M	―	-4.73%	7.97%	-27.82%	-159.63%

Washington Bancorp Corporate Events

Washington Trust Bancorp’s Earnings Call: Balancing Growth and Challenges

Washington Trust Bancorp’s recent earnings call presented a balanced sentiment, reflecting both positive developments and notable challenges. The company reported strong core business performance and strategic investments, but faced difficulties with declining net income, elevated credit loss provisions, and office property valuations. This duality highlights the company’s growth potential alongside existing risks.

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.