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Washington Trust Bancorp (WASH)
NASDAQ:WASH
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Washington Bancorp
(NASDAQ:WASH)
Rating:53Neutral
Price Target:
$29.00
â–²(5.22%Upside)
Positive Factors
Capital Raise and Dividend Coverage
The recently completed capital raise and balance sheet repositioning safely secures dividend coverage.
Dividend Support
The recent balance sheet repositioning reduced NIM headwinds and provided WASH with a much-needed cushion to maintain the dividend.
Interest Rate Benefits
WASH will be an outsized beneficiary when rates fall, with all securities listed as AFS.
Negative Factors
Earnings Headwind
Lower rates are likely to remain a near-term earnings headwind while demographic challenges limit deposit beta leverage.
Market Competition
Market demographics and competition make retaining and growing the bank's deposit base a difficult and expensive task.
Washington Bancorp (WASH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$534.75M
Dividend Yield8.13%
Average Volume (3M)151.54K
Price to Earnings (P/E)12.2
Beta (1Y)1.28
Revenue Growth-24.85%
EPS Growth-156.55%
CountryUS
Employees618
SectorFinancial
Sector Strength73
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.68
Shares Outstanding19,291,107
10 Day Avg. Volume161,850
30 Day Avg. Volume151,536
Financial Highlights & Ratios
PEG Ratio30.26
Price to Book (P/B)0.99
Price to Sales (P/S)0.00
P/FCF Ratio8.52
Enterprise Value/Market Cap2.45
Enterprise Value/Revenue0.92
Enterprise Value/Gross Profit12.15
Enterprise Value/Ebitda25.83
Forecast
1Y Price Target
$30.75Price Target Upside11.57% Upside
Rating ConsensusHold
Number of Analyst Covering4
Washington Bancorp Business Overview & Revenue Model
Company DescriptionWashington Bancorp (WASH) is a regional financial services company headquartered in the United States. It operates primarily in the banking sector, offering a range of financial products and services tailored to meet the needs of individual consumers, small to medium-sized businesses, and large corporations. Its core offerings include personal and business banking services, mortgage and loan solutions, wealth management, and investment advisory services.
How the Company Makes MoneyWashington Bancorp generates revenue through various streams, primarily from interest income and non-interest income. Interest income is derived from the interest earned on loans and mortgages provided to customers, as well as interest from investment securities. Non-interest income includes fees from services such as account maintenance, overdrafts, ATM transactions, and wealth management. The company also benefits from partnerships with other financial institutions and service providers, enhancing its product offerings and expanding its customer base. Additionally, Washington Bancorp invests in various financial instruments, further contributing to its earnings.
Washington Bancorp Earnings Call Summary
Earnings Call Date:Jul 21, 2025
(Q2-2025)
| % Change Since: -5.26%|
Next Earnings Date:Oct 27, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive financial performance indicators such as increased net income, net interest income, and mortgage banking revenues. However, challenges like a decline in residential loans and ongoing net outflows in the wealth management unit were noted. The sentiment of the call reflects a cautiously optimistic outlook with a focus on maintaining growth momentum while addressing existing challenges.Q2-2025 Updates
Positive Updates
Increase in Net Income
Reported net income of $13.2 million or $0.68 per share, an increase from $12.2 million or $0.63 per share in the previous quarter.
Growth in Net Interest Income
Net interest income was $37.2 million, up by $763,000 or 2% on a linked quarter basis.
Strong Mortgage Banking Revenue
Mortgage banking revenues increased by 32% to $3 million, with the mortgage pipeline at $102 million, up by 7% from the end of March.
Increase in Wealth Management Revenues
Wealth management revenues were $10.1 million, up by $229,000 or 2%.
Loan and Deposit Growth
Total loans were up by $44 million or 1%, and in-market deposits increased by $30 million or 1% from the end of the first quarter.
Negative Updates
Decline in Residential Loans
Total residential loans decreased by 1%.
Nonperforming Loan Increase
A potential $11 million exposure to a broadband infrastructure contractor resulted in a non-performing loan due to a major contract cancellation.
Challenges in Wealth Management Growth
Despite revenue improvements, there have been 13 consecutive quarters of net outflows in the wealth management unit.
Company Guidance
In the second quarter of 2025, Washington Trust Bancorp Inc. reported strong financial performance with net income of $13.2 million or $0.68 per share, up from $12.2 million or $0.63 per share in the previous quarter. This growth was driven by increased net interest income of $37.2 million, a 2% rise from the linked quarter, and noninterest income totaling $17.1 million. Wealth management revenues increased by 2% to $10.1 million, while mortgage banking revenues saw significant growth, up 32% to $3 million. The company's asset under administration (AUA) balances rose by 5% to $7.2 billion. Total loans grew by $44 million or 1%, with total commercial loans up by 2%. The company also focused on enhancing its wealth management team and finalized the conversion of its core wealth management system to improve customer experience. Washington Trust remains committed to providing comprehensive banking services and continues to target loan and deposit growth, emphasizing deposit generation and wealth management expansion.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.62
Positive
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.70
Positive
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.68
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 312.57M | 310.78M | 364.80M | 257.07M | 245.39M | 269.38M |
| Gross Profit | 107.99M | 96.15M | 190.04M | 219.89M | 233.65M | 214.54M |
| EBITDA | -32.27M | -34.06M | 61.33M | 95.50M | 102.49M | 93.25M |
| Net Income | -26.82M | -28.06M | 48.18M | 71.68M | 76.87M | 69.83M |
Balance Sheet | ||||||
| Total Assets | 6.59B | 6.93B | 7.20B | 6.66B | 5.85B | 5.71B |
| Cash, Cash Equivalents and Short-Term Investments | 190.37M | 177.61M | 1.09B | 1.11B | 1.22B | 1.10B |
| Total Debt | 911.40M | 1.18B | 1.24B | 1.03B | 196.69M | 648.26M |
| Total Liabilities | 6.06B | 6.43B | 6.73B | 6.21B | 5.29B | 5.18B |
| Stockholders Equity | 521.68M | 499.73M | 472.69M | 453.67M | 564.81M | 534.20M |
Cash Flow | ||||||
| Free Cash Flow | 60.71M | 53.67M | 26.55M | 106.87M | 97.32M | 33.07M |
| Operating Cash Flow | 64.17M | 57.67M | 31.60M | 113.01M | 100.81M | 36.48M |
| Investing Cash Flow | 616.97M | 231.30M | -550.84M | -999.04M | -240.90M | -264.24M |
| Financing Cash Flow | -666.49M | -265.27M | 491.00M | 825.96M | 116.31M | 291.57M |
Washington Bancorp Technical Analysis
Negative
27.56
Price Trends
27.97
Negative
28.06
Negative
30.12
Negative
Market Momentum
0.07
Positive
40.42
Neutral
7.37
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WASH, the sentiment is Negative. The current price of 27.56 is below the 20-day moving average (MA) of 28.85, below the 50-day MA of 27.97, and below the 200-day MA of 30.12, indicating a bearish trend. The MACD of 0.07 indicates Positive momentum. The RSI at 40.42 is Neutral, neither overbought nor oversold. The STOCH value of 7.37 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WASH.
Washington Bancorp Risk Analysis
Washington Bancorp disclosed 38 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
Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $535.66M | 11.20 | 9.88% | 2.99% | 2.66% | 128.06% | |
74 Outperform | $575.45M | 14.25 | 12.19% | 1.13% | 18.85% | 6.74% | |
69 Neutral | $539.18M | 16.30 | 7.82% | 1.02% | 6.63% | 62.84% | |
68 Neutral | $548.91M | 18.41 | 6.27% | 3.73% | 40.06% | 145.33% | |
68 Neutral | $17.10B | 11.19 | 9.70% | 3.58% | 11.11% | -4.55% | |
59 Neutral | $529.29M | 8.52 | -16.42% | 4.68% | -29.94% | -178.36% | |
53 Neutral | $534.75M | 12.16 | -4.88% | 8.13% | -24.85% | -156.55% |
* Financial Sector Average
Performance Comparison
WASH
Washington Bancorp
27.56
-1.84
-6.26%
FISI
Financial Institutions
26.06
2.28
9.59%
HIFS
Hingham Institution For Savings
246.61
8.89
3.74%
SHBI
Shore Bancshares
15.83
1.76
12.51%
CBNK
Capital Bancorp
34.24
9.64
39.19%
ALRS
Alerus Financial
21.72
0.40
1.88%
Washington Bancorp Corporate Events
Business Operations and Strategy
Washington Bancorp Repositions Balance Sheet for Growth
Positive
Dec 20, 2024
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.
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.