NasdaqGS:WASH

Stock Analysis Report

Washington Trust Bancorp

Executive Summary

Washington Trust Bancorp, Inc. operates as the bank holding company for The Washington Trust Company, of Westerly that offers various financial products and services to individuals and businesses.

Snowflake

Fundamentals

Flawless balance sheet 6 star dividend payer.


Similar Companies

Share Price & News

How has Washington Trust Bancorp's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

5.4%

WASH

2.9%

US Banks

0.07%

US Market


1 Year Return

-1.7%

WASH

8.6%

US Banks

8.9%

US Market

Return vs Industry: WASH underperformed the US Banks industry which returned 8.6% over the past year.

Return vs Market: WASH underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

WASHIndustryMarket
7 Day5.4%2.9%0.07%
30 Day2.8%3.4%-0.3%
90 Day3.6%2.1%-1.6%
1 Year2.3%-1.7%11.8%8.6%11.3%8.9%
3 Year23.2%11.6%54.8%44.1%46.3%36.8%
5 Year58.3%33.6%70.2%51.6%62.1%44.3%

Price Volatility Vs. Market

How volatile is Washington Trust Bancorp's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Washington Trust Bancorp undervalued compared to its fair value and its price relative to the market?

12.5x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WASH ($50.85) is trading above our estimate of fair value ($42.17)

Significantly Below Fair Value: WASH is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: WASH is good value based on its PE Ratio (12.5x) compared to the Banks industry average (12.6x).

PE vs Market: WASH is good value based on its PE Ratio (12.5x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: WASH is poor value based on its PEG Ratio (6.7x)


Price to Book Ratio

PB vs Industry: WASH is overvalued based on its PB Ratio (1.8x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Washington Trust Bancorp forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

1.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WASH's forecast earnings growth (1.9% per year) is below the savings rate (2.7%).

Earnings vs Market: WASH's earnings (1.9% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: WASH's earnings are forecast to grow, but not significantly.

Revenue vs Market: WASH's revenue is expected to decline over the next 3 years (-0.01% per year).

High Growth Revenue: WASH's revenue is forecast to decline over the next 3 years (-0.01% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if WASH's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Washington Trust Bancorp performed over the past 5 years?

11.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: WASH's earnings have grown by 11.8% per year over the past 5 years.

Accelerating Growth: WASH's earnings growth over the past year (19%) exceeds its 5-year average (11.8% per year).

Earnings vs Industry: WASH earnings growth over the past year (19%) underperformed the Banks industry 29.7%.


Return on Equity

High ROE: WASH's Return on Equity (14.2%) is considered low.


Return on Assets

ROA vs Industry: WASH has a higher Return on Assets than the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate WASH's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is Washington Trust Bancorp's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: WASH has a low level of unsold assets or inventory.

Debt Coverage by Assets: WASH's debt is not covered by short term assets (assets are 0.2x debt).


Financial Institutions Analysis

Asset Level: WASH's level of assets compared to its equity is moderate.

Allowance for Bad Loans: WASH has a sufficient allowance for bad loans.

Low Risk Liabilities: WASH's liabilities are made up of primarily low risk sources of funding.

Loan Level: WASH has an acceptable proportion of non-loan assets held.

Low Risk Deposits: WASH's loans are broadly funded by customer deposits.

Level of Bad Loans: WASH has an appropriate level of bad loans (0.34%)


Next Steps

Dividend

What is Washington Trust Bancorp's current dividend yield, its reliability and sustainability?

4.01%

Current Dividend Yield


Dividend Yield vs Market

company4.0%marketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Years4.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: WASH's dividend (4.01%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: WASH's dividend (4.01%) is in the top 25% of dividend payers in the US market (3.68%)

Stable Dividend: WASH's dividends per share have been stable in the past 10 years.

Growing Dividend: WASH's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (48.2%), WASH's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WASH's dividends in 3 years are forecast to be covered by earnings (57.5% payout ratio).


Next Steps

Management

What is the CEO of Washington Trust Bancorp's salary, the management and board of directors tenure and is there insider trading?

1.9yrs

Average management tenure


CEO

Ned Handy (57yo)

1.6yrs

Tenure

US$1,714,555

Compensation

Mr. Edward “Ned” O. Handy III, is the Chairman of the Board of Directors and Chief Executive Officer for Washington Trust Bancorp, Inc., the parent of Washington Trust Company. He leads a team of more than ...


CEO Compensation Analysis

Compensation vs. Market: Ned has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: Ned's compensation has increased by more than 20% in the past year.


Management Age and Tenure

1.9yrs

Average Tenure

54yo

Average Age

Experienced Management: WASH's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Age and Tenure

8.5yrs

Average Tenure

70.5yo

Average Age

Experienced Board: WASH's board of directors are considered experienced (8.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$31,77014 May 19
Edwin Santos
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares600
Max PriceUS$52.95
BuyUS$26,50007 May 19
John Ruggieri
EntityIndividual
Shares500
Max PriceUS$53.00
SellUS$15,14929 Apr 19
Edwin Santos
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares300
Max PriceUS$50.50
SellUS$51,93008 Nov 18
H. Randall
EntityIndividual
Shares1,000
Max PriceUS$51.94

Ownership Breakdown


Management Team

  • Beth Eckel (59yo)

    Senior VP and Chief Marketing & Corporate Communications Officer

    • Tenure: 0yrs
  • Joe MarcAurele (68yo)

    Director

    • Tenure: 9.5yrs
    • Compensation: US$292.78k
  • Ned Handy (57yo)

    Chairman & CEO

    • Tenure: 1.6yrs
    • Compensation: US$1.71m
  • Mark K. Gim (53yo)

    President & COO

    • Tenure: 1.6yrs
    • Compensation: US$987.31k
  • Kristen DiSanto (49yo)

    Senior EVP

    • Tenure: 1.7yrs
  • Maria Janes (48yo)

    Executive VP & Controller

    • Tenure: 21.8yrs
  • Ronald Ohsberg (54yo)

    Senior EVP

    • Tenure: 1.8yrs
    • Compensation: US$607.26k
  • Jim Hagerty (61yo)

    Executive VP & Chief Lending Officer of Washington Trust Company of Westerly

    • Tenure: 7.3yrs
    • Compensation: US$589.76k
  • Joe Confessore

    Senior Vice President of Wealth Management & Commercial Banking

    • Tenure: 0yrs
  • Kathi Ryan (53yo)

    Executive VP & Chief Wealth Management Officer of Washington Trust Company of Westerly

    • Tenure: 2.1yrs
    • Compensation: US$621.91k

Board Members

  • Kathleen McKeough (68yo)

    Lead Director

    • Tenure: 0.5yrs
    • Compensation: US$102.55k
  • John Warren (73yo)

    Member of Advisory Council

    • Tenure: 0yrs
    • Compensation: US$17.33k
  • Jack Treanor (71yo)

    Independent Director

    • Tenure: 18.8yrs
    • Compensation: US$82.05k
  • Joyce Resnikoff (82yo)

    Member of Advisory Council

    • Tenure: 0yrs
    • Compensation: US$25.70k
  • James Sullivan (81yo)

    Member of Advisory Council

    • Tenure: 0yrs
    • Compensation: US$32.35k
  • Neil Thorp (79yo)

    Member of Advisory Council

    • Tenure: 0yrs
    • Compensation: US$22.00k
  • Katherine Hoxsie (70yo)

    Independent Director

    • Tenure: 28.8yrs
    • Compensation: US$91.55k
  • Joe MarcAurele (68yo)

    Director

    • Tenure: 9.5yrs
    • Compensation: US$292.78k
  • Ned Handy (57yo)

    Chairman & CEO

    • Tenure: 1.6yrs
    • Compensation: US$1.71m
  • Ed Santos (59yo)

    Independent Director

    • Tenure: 7.5yrs
    • Compensation: US$85.72k

Company Information

Washington Trust Bancorp, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Washington Trust Bancorp, Inc.
  • Ticker: WASH
  • Exchange: NasdaqGS
  • Founded: 1800
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$881.637m
  • Shares outstanding: 17.34m
  • Website: https://www.washtrust.com

Number of Employees


Location

  • Washington Trust Bancorp, Inc.
  • 23 Broad Street
  • Westerly
  • Rhode Island
  • 2891
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WASHNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJun 1987

Biography

Washington Trust Bancorp, Inc. operates as the bank holding company for The Washington Trust Company, of Westerly that offers various financial products and services to individuals and businesses. The comp ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 23:44
End of Day Share Price2019/10/22 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.