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Relative valuation derived from Financials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 53.8GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
8.7%
Sector: 8.5%
Dividend Analysis audit
HIGH YIELD
7.90%
Trailing Yield
$7.90
Per $100 Invested
Attractive yield supported by strong profitability.
Est. Payout Ratio
111%HIGH
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, WASHINGTON TRUST BANCORP INC (WASH) receives a "Hold" rating with a composite score of 51.6/100, ranked #281 out of 4446 stocks. Key factor scores: Quality 54/100, Value 73/100, Momentum 52/100. This is quantitative analysis only — not investment advice.
WASHINGTON TRUST BANCORP INC (WASH) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does WASHINGTON TRUST BANCORP INC Do?
Washington Trust Bancorp, Inc. operates as the bank holding company for The Washington Trust Company, of Westerly that offers various banking and 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, such as commercial real estate loans, including commercial mortgages and construction loans; commercial and industrial loans; residential real estate loans that consist 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 machine, telephone banking, internet banking, 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; and offers variable annuities and college savings plans. As of December 31, 2021, it had 10 branch offices located in southern Rhode Island, 13 branch offices located in the greater Providence area in Rhode Island, and 1 branch office located in southeastern Connecticut. Washington Trust Bancorp, Inc. was founded in 1800 and is headquartered in Westerly, Rhode Island. WASHINGTON TRUST BANCORP INC (WASH) is classified as a small-cap stock in the Financials sector, specifically within the Banking industry. The company is led by CEO Edward O. Handy and employs approximately 650 people, headquartered in Westerly, Rhode Island. With a market capitalization of $637M, WASH is one of the notable companies in the Financials sector.
WASHINGTON TRUST BANCORP INC (WASH) Stock Rating — Hold (April 2026)
As of April 2026, WASHINGTON TRUST BANCORP INC receives a Hold rating with a composite score of 51.6/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.WASH ranks #281 out of 4,446 stocks in our coverage universe. Within the Financials sector, WASHINGTON TRUST BANCORP INC ranks #104 of 891 stocks, placing it in the top quartile of its Financials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
WASH Stock Price and 52-Week Range
WASHINGTON TRUST BANCORP INC (WASH) currently trades at $35.70. The stock lost $0.02 (0.1%) in the most recent trading session. The 52-week high for WASH is $37.08, which means the stock is currently trading -3.7% from its annual peak. The 52-week low is $24.95, putting the stock 43.1% above its annual trough. Recent trading volume was 190K shares, suggesting relatively thin trading activity.
Is WASH Overvalued or Undervalued? — Valuation Analysis
WASHINGTON TRUST BANCORP INC (WASH) carries a value factor score of 73/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 14.10x, compared to the Financials sector average of 14.88x — a discount of 5%. The price-to-book ratio stands at 1.23x, versus the sector average of 1.22x. The price-to-sales ratio is 3.05x, compared to 0.90x for the average Financials stock. On an enterprise value basis, WASH trades at 10.99x EV/EBITDA, versus 3.26x for the sector.
Based on these multiples, WASHINGTON TRUST BANCORP INC appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
WASHINGTON TRUST BANCORP INC Profitability — ROE, Margins, and Quality Score
WASHINGTON TRUST BANCORP INC (WASH) earns a quality factor score of 54/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 8.7%, compared to the Financials sector average of 8.5%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at 0.7% versus the sector average of 1.2%.
On a margin basis, WASHINGTON TRUST BANCORP INC reports gross margins of 0.0%. The operating margin is 27.8% (sector: 21.8%). Net profit margin stands at 21.7%, versus 17.7% for the average Financials stock. Revenue growth is running at 17.1% on a trailing basis, compared to 9.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
WASH Debt, Balance Sheet, and Financial Health
WASHINGTON TRUST BANCORP INC has a debt-to-equity ratio of 1118.0%, compared to the Financials sector average of 121.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 1.09x, suggesting adequate working capital coverage. Total debt on the balance sheet is $814M. Cash and equivalents stand at $36M.
WASH has a beta of 0.82, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for WASHINGTON TRUST BANCORP INC is 77/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
WASHINGTON TRUST BANCORP INC Revenue and Earnings History — Quarterly Trend
In TTM 2026, WASHINGTON TRUST BANCORP INC reported revenue of $218M and earnings per share (EPS) of $2.72. Net income for the quarter was $47M. Gross margin was 0.0%. Operating income came in at $61M.
In FY 2025, WASHINGTON TRUST BANCORP INC reported revenue of $229M and earnings per share (EPS) of $2.72. Net income for the quarter was $52M. Revenue grew 127.6% year-over-year compared to FY 2024. Operating income came in at $67M.
In Q3 2025, WASHINGTON TRUST BANCORP INC reported revenue of $56M and earnings per share (EPS) of $0.57. Net income for the quarter was $11M. Revenue grew 16.3% year-over-year compared to Q3 2024. Operating income came in at $14M.
In Q2 2025, WASHINGTON TRUST BANCORP INC reported revenue of $54M and earnings per share (EPS) of $0.69. Net income for the quarter was $13M. Revenue grew 12.5% year-over-year compared to Q2 2024. Operating income came in at $17M.
Over the past 8 quarters, WASHINGTON TRUST BANCORP INC has demonstrated a growth trajectory, with revenue expanding from $48M to $218M. Investors analyzing WASH stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
WASH Dividend Yield and Income Analysis
WASHINGTON TRUST BANCORP INC (WASH) currently pays a dividend yield of 7.9%. At this yield, a $10,000 investment in WASH stock would generate approximately $$790.00 in annual dividend income. This compares to the Financials sector average dividend yield of 2.5%, meaning WASH offers above-average income for its sector. With a net margin of 21.7%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
WASH Momentum and Technical Analysis Profile
WASHINGTON TRUST BANCORP INC (WASH) has a momentum factor score of 52/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 27/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 12/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
WASH vs Competitors — Financials Sector Ranking and Peer Comparison
Comparing WASH against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full WASH vs S&P 500 (SPY) comparison to assess how WASHINGTON TRUST BANCORP INC stacks up against the broader market across all factor dimensions.
WASH Next Earnings Date
No upcoming earnings date has been announced for WASHINGTON TRUST BANCORP INC (WASH) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy WASH? — Investment Thesis Summary
WASHINGTON TRUST BANCORP INC presents a balanced picture with arguments on both sides. The value score of 73/100 suggests attractive pricing relative to fundamentals. Low volatility (stability score 77/100) reduces downside risk.
In summary, WASHINGTON TRUST BANCORP INC (WASH) earns a Hold rating with a composite score of 51.6/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on WASH stock.
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Institutional Research Dossier
WASHINGTON TRUST BANCORP INC (WASH) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We maintain a Hold rating on Washington Trust Bancorp (WASH). While the company exhibits attractive valuation metrics relative to its peers and demonstrates strong profitability, its high debt levels and relatively weak investment profile raise concerns about its long-term growth prospects and financial flexibility. The bank's reliance on debt financing, coupled with a modest investment score, suggests a cautious approach is warranted despite its current profitability and revenue growth.
WASH's strengths lie in its efficient operations, reflected in its superior operating and net margins compared to the financial sector. However, its elevated debt-to-equity ratio presents a significant risk, potentially limiting its ability to capitalize on future opportunities or withstand economic downturns. Investors should closely monitor the company's debt management strategies and investment decisions to assess its ability to sustain its performance and navigate potential challenges.
Business Strategy & Overview
Washington Trust Bancorp operates primarily through its two segments: Commercial Banking and Wealth Management Services. The Commercial Banking segment, the larger of the two, focuses on providing a range of lending products, including commercial real estate loans, commercial and industrial loans, residential real estate loans, and consumer loans. This segment also offers deposit accounts and various cash management services, catering to both individual and business clients. The Wealth Management Services segment provides investment management, financial planning, and trust and estate services to personal and institutional clients. This diversification allows WASH to capture revenue streams from different areas of the financial services sector, mitigating risk to some extent.
The company's strategic positioning centers around its strong presence in Rhode Island and southeastern Connecticut, where it operates a network of branch offices. This regional focus allows WASH to build strong customer relationships and maintain a deep understanding of the local market dynamics. While a regional focus can limit growth opportunities compared to larger national banks, it also allows for more targeted marketing and service offerings, potentially leading to higher customer loyalty and retention.
WASH's revenue generation is primarily driven by net interest income from its lending activities and fees from its wealth management services. The bank's ability to effectively manage its net interest margin, the difference between the interest it earns on loans and the interest it pays on deposits, is crucial for its profitability. Additionally, the growth of its assets under management (AUM) in the Wealth Management Services segment contributes significantly to its overall revenue.
The company also operates as a licensed broker-dealer and offers variable annuities and college savings plans, further diversifying its product offerings and revenue streams. This comprehensive suite of financial services allows WASH to cater to a wide range of customer needs, from basic banking to complex investment and estate planning. However, it also increases the complexity of the business and requires specialized expertise in each area.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
17.1%
Sector: 9.4%
+82% VS SCTR
Economic Moat Analysis
Washington Trust Bancorp's economic moat can be classified as Narrow. The company benefits from a degree of customer stickiness due to its long-standing presence and strong reputation in its core market of Rhode Island and southeastern Connecticut. This regional focus has allowed WASH to build strong relationships with its customers, creating a level of trust and loyalty that is difficult for competitors to replicate quickly.
The bank's wealth management services also contribute to its narrow moat. These services often involve long-term relationships and a high degree of trust, making customers less likely to switch providers. Furthermore, the complexity of wealth management services, such as estate planning and investment management, creates switching costs for customers who would need to transfer their assets and re-establish relationships with a new provider.
However, WASH's moat is not wide due to the highly competitive nature of the banking industry. The company faces competition from larger national banks, regional banks, and credit unions, all of which offer similar products and services. While WASH's regional focus provides some differentiation, it is not enough to create a significant barrier to entry for competitors.
Furthermore, the increasing prevalence of online banking and fintech companies is eroding the advantages of traditional brick-and-mortar banks like WASH. These new entrants are often able to offer lower fees and more convenient services, attracting customers who are less loyal to traditional banks. While WASH has invested in its online and mobile banking platforms, it still faces a challenge in competing with these more agile and technologically advanced competitors.
The bank's intangible assets, such as its brand reputation and regulatory licenses, provide some support for its narrow moat. However, these assets are not unique to WASH and are shared by many other banks. Therefore, while WASH benefits from a degree of competitive advantage, its moat is not strong enough to protect it from significant competition in the long term.
Financial Health & Profitability
Washington Trust Bancorp's financial health presents a mixed picture. The company demonstrates strong profitability metrics, with an operating margin of 27.8% and a net margin of 21.7%, both significantly higher than the sector averages of 22.0% and 17.8%, respectively. Its Return on Equity (ROE) of 8.7% is also slightly above the sector average of 8.5%, indicating efficient use of shareholder equity. The recent TTM revenue growth of 17.1% is substantially higher than the sector's 9.3%, suggesting successful business strategies and market penetration.
However, the company's balance sheet raises concerns. The debt-to-equity ratio of 1,118.00 is exceptionally high compared to the sector average of 115.00, indicating a significant reliance on debt financing. This high leverage increases the company's financial risk and vulnerability to interest rate fluctuations and economic downturns. While the current ratio of 1.09 suggests adequate short-term liquidity, the high debt burden could constrain future growth opportunities and limit financial flexibility.
Analyzing the quarterly financial history reveals a volatile performance. While FY2025 shows strong revenue and net income, FY2024 experienced a significant net loss, primarily due to a negative operating margin. The subsequent recovery in FY2025 suggests a turnaround, but the inconsistency highlights the potential for fluctuations in earnings. The operating margin has varied considerably across quarters, indicating sensitivity to changes in revenue and expenses.
The free cash flow (FCF) of $489.05M is a positive sign, indicating strong cash generation capabilities. However, the absence of FCF data for previous periods makes it difficult to assess the trend and sustainability of this performance. The company's ability to consistently generate positive FCF is crucial for managing its debt and funding future investments.
Overall, WASH's financial health is characterized by strong profitability and revenue growth, offset by a highly leveraged balance sheet and volatile historical performance. Investors should closely monitor the company's debt management strategies and its ability to maintain consistent profitability and cash flow generation.
Valuation Assessment
Washington Trust Bancorp's valuation appears attractive based on several key metrics. The company's P/E ratio of 11.8x is lower than the sector average of 15.5x, suggesting that the stock is undervalued relative to its earnings. Similarly, its EV/EBITDA ratio of 2.3x is significantly lower than the sector average of 3.5x, further indicating undervaluation based on its enterprise value and operating performance.
However, it's crucial to consider the company's high debt levels when assessing its valuation. The elevated debt-to-equity ratio could be a factor contributing to the lower valuation multiples, as investors may perceive the company as riskier due to its high leverage. Therefore, while the P/E and EV/EBITDA ratios suggest undervaluation, they should be interpreted with caution.
The company's free cash flow yield, calculated as FCF per share divided by the share price, is not readily available due to the lack of historical FCF data. However, the TTM FCF of $489.05M suggests a potentially high FCF yield, which would be another positive indicator of undervaluation. However, without historical data, it's impossible to determine whether this is a sustainable level of FCF generation.
Comparing WASH's valuation to its historical performance is challenging due to the limited historical financial data provided. However, the significant turnaround in FY2025, with strong revenue and net income growth, suggests that the company may be undervalued if it can sustain this level of performance. The market may not have fully priced in the potential for continued growth and profitability.
Overall, WASH's valuation appears attractive based on its P/E and EV/EBITDA ratios, but the high debt levels and limited historical data warrant a cautious approach. The stock may be undervalued if the company can sustain its recent performance, but investors should closely monitor its debt management and cash flow generation to assess the sustainability of its valuation.
Risk & Uncertainty
Washington Trust Bancorp faces several specific risks that could negatively impact its business and financial performance. One of the most significant risks is its high debt-to-equity ratio. This high leverage increases the company's vulnerability to interest rate fluctuations, economic downturns, and unforeseen financial challenges. A rise in interest rates could significantly increase the company's borrowing costs, reducing its profitability and cash flow. An economic recession could lead to increased loan defaults, further straining its financial resources.
Another risk is the competitive landscape of the banking industry. WASH faces competition from larger national banks, regional banks, and credit unions, all of which offer similar products and services. The increasing prevalence of online banking and fintech companies also poses a threat, as these new entrants are often able to offer lower fees and more convenient services. WASH needs to continuously innovate and adapt to maintain its competitive edge.
Regulatory risk is also a concern for WASH. The banking industry is heavily regulated, and changes in regulations could significantly impact the company's operations and profitability. For example, changes in capital requirements, lending regulations, or consumer protection laws could increase the company's compliance costs and limit its ability to generate revenue.
Concentration risk is another factor to consider. WASH's business is primarily focused in Rhode Island and southeastern Connecticut, making it vulnerable to regional economic downturns or adverse events. A decline in the local economy could lead to increased loan defaults and reduced demand for its services. Diversifying its geographic footprint could mitigate this risk, but it would also require significant investment and resources.
Bulls Say / Bears Say
The Bull Case
BULL VIEWWASH's superior operating and net margins compared to the sector indicate efficient operations and strong profitability, suggesting the company is well-managed and can generate attractive returns.
BULL VIEWThe company's low P/E and EV/EBITDA ratios relative to the sector suggest the stock is undervalued and offers a compelling investment opportunity with potential for price appreciation.
BULL VIEWRecent revenue growth significantly outpaces the sector, indicating successful business strategies and market penetration, which could lead to continued strong performance.
The Bear Case
BEAR VIEWWASH's extremely high debt-to-equity ratio compared to the sector average poses a significant financial risk, potentially limiting its ability to weather economic downturns or capitalize on growth opportunities.
BEAR VIEWThe company's volatile quarterly financial performance, including a net loss in FY2024, raises concerns about the consistency and sustainability of its earnings.
BEAR VIEWWASH's regional focus and competition from larger banks and fintech companies limit its growth potential and expose it to concentration risk, hindering its ability to expand and maintain market share.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score WASH and 4,400+ other equities.
WASHINGTON TRUST BANCORP INC exhibits a 118% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
0.7%
Sector: 1.2%
Gross Margin
Pricing power and cost efficiency
0.0%
Sector: 0.0%
Operating Margin
Core business profitability
27.8%
Sector: 21.8%
Net Margin
Bottom-line profitability
21.7%
Sector: 17.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield2.48%
Yield Delta+219%
Income Projection audit
A $10,000 investment would generate approximately $790 annually in dividends at the current trailing rate.
