Washington Trust Bancorp
Market Cap
US$642.3m
Last Updated
2020/03/31 02:14 UTC
Data Sources
Company Financials +
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.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -5.4% per year for the next 3 years
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
| WASH | Industry | Market | |
|---|---|---|---|
| 7 Day | 8.3% | 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 Year | 17.1%-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
5 days ago | Simply Wall St
Washington Trust Bancorp, Inc. (NASDAQ:WASH) Looks Interesting, And It's About To Pay A Dividend2 weeks ago | Simply Wall St
Here's What Washington Trust Bancorp, Inc.'s (NASDAQ:WASH) P/E Ratio Is Telling Us1 month ago | Simply Wall St
Update: Washington Trust Bancorp (NASDAQ:WASH) Stock Gained 28% In The Last Five YearsValuation
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 2yrs | US$1.55m | 0.069% $442.0k | |
| President & COO | 2yrs | US$1.43m | 0.12% $777.7k | |
| Senior EVP | 2.17yrs | US$636.82k | no data | |
| Executive VP & Chief Lending Officer of Washington Trust Company of Westerly | 7.67yrs | US$610.49k | 0.058% $374.5k | |
| Executive VP & Chief Wealth Management Officer of Washington Trust Company of Westerly | 2.42yrs | US$635.88k | 0.0029% $18.5k | |
| Senior EVP | 2yrs | no data | 0.070% $449.0k | |
| Senior Vice President of Wealth Management & Commercial Banking | no data | no data | no data | |
| Executive VP & Controller | 22.17yrs | no data | 0.026% $167.9k | |
| VP & Connecticut Area Manager of Washington Trust Mortgage | 8.58yrs | no data | no data |
2.3yrs
Average Tenure
53yo
Average Age
Experienced Management: WASH's management team is considered experienced (2.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 2yrs | US$1.55m | 0.069% $442.0k | |
| Lead Director | 0.83yr | US$104.29k | 0.073% $471.6k | |
| Member of Advisory Council | no data | US$17.33k | no data | |
| Independent Director | 19.17yrs | US$82.12k | 0.079% $508.0k | |
| Member of Advisory Council | no data | US$25.70k | no data | |
| Member of Advisory Council | no data | US$22.00k | no data | |
| Member of Advisory Council | no data | no data | no data | |
| Member of Advisory Council | no data | US$17.07k | no data | |
| Independent Director | 29.17yrs | US$95.12k | 0.76% $4.9m | |
| Independent Director | 7.83yrs | US$92.12k | 0.017% $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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| WASH | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Jun 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/31 02:14 |
| End of Day Share Price | 2020/03/30 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.