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 services to individuals and businesses.


Snowflake Analysis

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

Stable Share Price: WASH's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

8.3%

WASH

6.0%

US Banks

7.2%

US Market


1 Year Return

-23.7%

WASH

-26.4%

US Banks

-10.4%

US Market

Return vs Industry: WASH underperformed the US Banks industry which returned -26.9% over the past year.

Return vs Market: WASH underperformed the US Market which returned -12.7% over the past year.


Shareholder returns

WASHIndustryMarket
7 Day8.3%6.0%7.2%
30 Day-13.8%-24.0%-12.6%
90 Day-31.2%-38.0%-19.4%
1 Year-20.4%-23.7%-24.1%-26.4%-8.5%-10.4%
3 Year-17.0%-25.4%-15.8%-21.9%15.8%8.3%
5 Year17.1%-1.8%13.2%0.2%35.8%21.0%

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?

31.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WASH ($35.28) is trading below our estimate of fair value ($53.22)

Significantly Below Fair Value: WASH is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: WASH is poor value based on its PE Ratio (8.9x) compared to the Banks industry average (8.8x).

PE vs Market: WASH is good value based on its PE Ratio (8.9x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: WASH's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: WASH is overvalued based on its PB Ratio (1.2x) compared to the US Banks industry average (0.8x).


Next Steps

Future Growth

How is Washington Trust Bancorp forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

-5.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WASH's earnings are forecast to decline over the next 3 years (-5.4% per year).

Earnings vs Market: WASH's earnings are forecast to decline over the next 3 years (-5.4% per year).

High Growth Earnings: WASH's earnings are forecast to decline over the next 3 years.

Revenue vs Market: WASH's revenue (1.8% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: WASH's revenue (1.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WASH's Return on Equity is forecast to be low in 3 years time (11.3%).


Next Steps

Past Performance

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

12.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WASH has high quality earnings.

Growing Profit Margin: WASH's current net profit margins (34.7%) are lower than last year (35.4%).


Past Earnings Growth Analysis

Earnings Trend: WASH's earnings have grown by 12.1% per year over the past 5 years.

Accelerating Growth: WASH's earnings growth over the past year (1%) is below its 5-year average (12.1% per year).

Earnings vs Industry: WASH earnings growth over the past year (1%) underperformed the Banks industry 11%.


Return on Equity

High ROE: WASH's Return on Equity (13.7%) is considered low.


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 (0.45%)


Next Steps

Dividend

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

5.52%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WASH's dividend (5.78%) is higher than the bottom 25% of dividend payers in the US market (1.98%).

High Dividend: WASH's dividend (5.78%) is in the top 25% of dividend payers in the US market (5.49%)


Stability and Growth of Payments

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 reasonable payout ratio (50.3%), WASH's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WASH's dividends in 3 years are forecast to be covered by earnings (60.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure


CEO

Ned Handy (57yo)

2s

Tenure

US$1,552,193

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 served as President and  ...


CEO Compensation Analysis

Compensation vs Market: Ned's total compensation ($USD1.55M) is below average for companies of similar size in the US market ($USD3.18M).

Compensation vs Earnings: Ned's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Edward Handy
Chairman & CEO2yrsUS$1.55m0.069% $442.0k
Mark K. Gim
President & COO2yrsUS$1.43m0.12% $777.7k
Ronald Ohsberg
Senior EVP2.17yrsUS$636.82kno data
James Hagerty
Executive VP & Chief Lending Officer of Washington Trust Company of Westerly7.67yrsUS$610.49k0.058% $374.5k
Kathleen Ryan
Executive VP & Chief Wealth Management Officer of Washington Trust Company of Westerly2.42yrsUS$635.88k0.0029% $18.5k
Kristen DiSanto
Senior EVP2yrsno data0.070% $449.0k
Joseph Confessore
Senior Vice President of Wealth Management & Commercial Bankingno datano datano data
Maria Janes
Executive VP & Controller22.17yrsno data0.026% $167.9k
Steven Veronesi
VP & Connecticut Area Manager of Washington Trust Mortgage8.58yrsno datano data

2.3yrs

Average Tenure

53yo

Average Age

Experienced Management: WASH's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Edward Handy
Chairman & CEO2yrsUS$1.55m0.069% $442.0k
Kathleen McKeough
Lead Director0.83yrUS$104.29k0.073% $471.6k
John Warren
Member of Advisory Councilno dataUS$17.33kno data
John Treanor
Independent Director19.17yrsUS$82.12k0.079% $508.0k
Joyce Resnikoff
Member of Advisory Councilno dataUS$25.70kno data
Neil Thorp
Member of Advisory Councilno dataUS$22.00kno data
Alcino Almeida
Member of Advisory Councilno datano datano data
Gary Bennett
Member of Advisory Councilno dataUS$17.07kno data
Katherine Hoxsie
Independent Director29.17yrsUS$95.12k0.76% $4.9m
Edwin Santos
Independent Director7.83yrsUS$92.12k0.017% $108.7k

7.8yrs

Average Tenure

72yo

Average Age

Experienced Board: WASH's board of directors are considered experienced (7.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: WASH insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$642.274m
  • Shares outstanding: 17.36m
  • 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 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, which include commercial real estate loans consisting of commercial mortgages and construction loans; commercial and industrial loans; residential real estate loans consists 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 machines, telephone, internet, 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 that offers variable annuities and college savings plans. As of December 31, 2019, it had 10 branch offices located in southern Rhode Island; 12 branch offices located in the greater Providence area in Rhode Island; and one branch office located in southeastern Connecticut. Washington Trust Bancorp, Inc. was founded in 1800 and is headquartered in Westerly, Rhode Island. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 02:14
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.