W.T.B. Financial (WTBFB) AI Stock Analysis

• Market Cap: $992.96M
• Dividend Yield: 2.07%
• Average Volume (3M): 760.00
• Price to Earnings (P/E): 10.3
• Beta (1Y): 0.12
• Revenue Growth: -0.50%
• EPS Growth: 87.73%
• Country: US
• Employees: 1,184
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 12.26
• Shares Outstanding: 2,490,818
• 10 Day Avg. Volume: 999
• 30 Day Avg. Volume: 760
• PEG Ratio: 34.40
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 1.37
• P/FCF Ratio: 26.27
• Enterprise Value/Market Cap: 1.57
• Enterprise Value/Revenue: 2.82
• Enterprise Value/Gross Profit: 4.10
• Enterprise Value/Ebitda: 17.64
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: $427.00 ▲(15.42% Upside)
• Action: Downgraded Date: 10/28/25
• Date: Action: Downgraded 10/28/25

W.T.B. Financial's overall stock score is driven by its strong financial performance and attractive valuation. Despite revenue challenges, the company maintains strong profitability and improved leverage. The technical analysis shows a positive trend, but the high RSI suggests caution. The lack of earnings call and corporate events data means these factors do not influence the score.

Positive Factors

Improved leverage position

A reduction in debt-to-equity from 2.52 to 0.93 materially lowers financial risk and interest burden. This stronger capital structure gives sustained flexibility to fund strategic initiatives, absorb shocks, and pursue growth without excessive refinancing risk.

High profitability margins

Robust EBIT (20.02%) and net margins (15.76%) indicate durable operational efficiency and pricing power across services. High margins support internal funding for investment and dividends, cushioning the firm against revenue swings and enabling longer-term profitability resilience.

Diversified fee-based revenue model

A mix of AUM management fees, advisory fees, commissions and partnerships creates recurring, fee-based revenue and distribution optionality. This diversification reduces dependence on any single income stream and supports steadier cash generation and client-retention dynamics over time.

Negative Factors

Significant revenue decline

A 30.48% revenue decline is a durable concern: sustained top-line contraction erodes scale economics, limits reinvestment capacity, and can eventually compress margins if fixed costs persist. Recovery is needed to restore growth trajectory and competitive positioning.

Weak operating cash flow coverage

An operating cash flow coverage ratio near 0.71% signals weak cash generation from core operations. Even with solid FCF to net income, this limited operational liquidity raises risk for funding working capital, investments, or distributions without relying on non-operational sources or balance sheet changes.

Modest return on equity

A ROE of 5.97% indicates limited efficiency in converting equity into profits. Over the medium term this constrains shareholder returns and suggests the company may need higher-margin growth, better capital allocation, or operational improvements to elevate long-term capital productivity.

W.T.B. Financial Business Overview & Revenue Model

Company Description

W.T.B. Financial Corporation operates as the bank holding company for Washington Trust Bank that provides banking, fiduciary, asset management, mortgage banking, and other financial services to corporate and individual customers. The company's deposit products include checking, savings and money market, health savings, individual retirement, and analyzed accounts, as well as certificates of deposit. It also offers credit and debit cards; home, auto, boat, motorcycle, motor home, home equity, equipment, debt refinancing, term, and agriculture loans; and SBA and commercial real estate financing products, as well as revolving, personal, and home equity lines of credit. In addition, the company provides investment products and services, such as retirement planning, mutual funds, stocks/bonds, life/long-term care insurance, annuities, brokerage, planning, and education funding. Further, it offers wealth management services consisting of investment management, charitable and nonprofit administration, estate settlement, family office, trust administration, retirement planning, employee benefits administration, and custody services, as well as portfolio management services. Additionally, the company provides digital wallets; remote deposit, merchant, treasury management, private banking, and online and mobile banking services; and documentary and standby letters of credit, documentary collection, foreign exchange products, foreign accounts receivable insurance, and SBA export loan guaranty programs. It operates through 42 branches and offices in Washington, Idaho, and Oregon. The company was founded in 1902 and is headquartered in Spokane, Washington.

How the Company Makes Money

W.T.B. Financial generates revenue through multiple key streams. Primarily, the company earns money by charging management fees on assets under management (AUM) for its investment management services. These fees are typically calculated as a percentage of the total AUM and can vary based on the investment strategy employed. Additionally, WTBFB collects advisory fees for financial planning and consulting services, which may be charged on an hourly basis or as a flat fee. The company may also earn commissions from financial products it sells, such as insurance and investment products, as well as performance fees based on the returns generated for clients. Strategic partnerships with financial institutions and technology providers enhance WTBFB's service offerings and market reach, further contributing to its revenue generation capabilities.

W.T.B. Financial Financial Statement Overview

Summary

W.T.B. Financial demonstrates resilience in profitability and leverage management despite facing revenue challenges. The income statement shows strong margins, while the balance sheet reflects improved leverage. Cash flow analysis indicates operational difficulties but effective cash management. Overall, the company is navigating a tough environment with a focus on maintaining financial stability.

Income Statement

W.T.B. Financial's income statement shows a significant revenue decline of 30.48% in the latest year, which is concerning. However, the company maintains a healthy EBIT margin of 20.02% and a net profit margin of 15.76%, indicating strong operational efficiency. The gross profit margin remains at 100%, reflecting the nature of the banking industry where revenue equals gross profit. Despite the revenue drop, profitability metrics are stable, suggesting effective cost management.

Balance Sheet

The balance sheet reveals a substantial reduction in debt, with the debt-to-equity ratio improving from 2.52 to 0.93, indicating a stronger financial position. Return on equity is modest at 5.97%, reflecting moderate profitability relative to equity. The equity ratio is not explicitly calculated but suggests a stable capital structure given the improvements in leverage. Overall, the balance sheet shows improved financial stability and reduced leverage risks.

Cash Flow

Cash flow analysis indicates a challenging environment with a significant drop in operating cash flow coverage ratio to 0.71%. Free cash flow to net income ratio is strong at 72.78%, suggesting efficient cash generation relative to earnings. However, the free cash flow growth rate is not meaningful due to the previous year's negative free cash flow. The cash flow statement reflects operational challenges but also highlights effective cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	551.75M	563.79M	495.11M	394.03M	376.49M	354.84M
Gross Profit	380.08M	353.97M	342.33M	381.30M	366.91M	339.63M
EBITDA	88.27M	78.92M	79.43M	154.52M	136.51M	106.15M
Net Income	69.31M	55.80M	55.85M	114.05M	100.03M	76.31M
Balance Sheet
Total Assets	10.68B	10.74B	11.45B	10.42B	11.09B	9.81B
Cash, Cash Equivalents and Short-Term Investments	485.71M	574.97M	1.15B	393.87M	2.05B	1.56B
Total Debt	500.00M	539.67M	1.93B	13.46M	37.25M	17.54M
Total Liabilities	9.73B	9.80B	10.55B	9.56B	10.26B	9.01B
Stockholders Equity	958.40M	934.18M	897.44M	867.13M	832.95M	806.52M
Cash Flow
Free Cash Flow	0.00	29.48M	109.62M	112.22M	49.72M	95.86M
Operating Cash Flow	0.00	40.51M	116.19M	120.78M	129.53M	109.12M
Investing Cash Flow	0.00	716.47M	-1.03B	672.15M	-1.38B	-2.63B
Financing Cash Flow	0.00	-765.91M	924.57M	-741.03M	1.18B	2.50B

W.T.B. Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 369.94
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WTBFB, the sentiment is Positive. The current price of 369.94 is below the 20-day moving average (MA) of 389.16, below the 50-day MA of 372.34, and above the 200-day MA of 323.88, indicating a bullish trend. The MACD of 6.14 indicates Positive momentum. The RSI at 65.73 is Neutral, neither overbought nor oversold. The STOCH value of 60.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WTBFB.

W.T.B. Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CPF	79 Outperform	$915.09M	11.93	11.65%	3.39%	1.22%	15.97%
MBWM	77 Outperform	$927.26M	9.87	13.79%	3.05%	5.64%	6.24%
BFST	75 Outperform	$849.66M	10.28	10.39%	2.12%	17.99%	11.08%
HAFC	72 Outperform	$820.18M	10.91	9.49%	3.82%	3.34%	15.52%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
WTBFB	66 Neutral	$992.96M	10.31	8.90%	2.07%	-0.50%	87.73%
NBN	65 Neutral	$933.71M	11.29	19.62%	0.04%	33.22%	38.44%