Washington Trust Bancorp, Inc. (WASH) Bundle
Understanding Washington Trust Bancorp, Inc. (WASH) Revenue Streams
Revenue Analysis
For the fiscal year ending December 31, 2023, the financial institution reported total revenue of $186.5 million, representing a 4.3% increase from the previous year.
| Revenue Source | 2023 Amount | Percentage of Total Revenue |
|---|---|---|
| Net Interest Income | $131.2 million | 70.4% |
| Non-Interest Income | $55.3 million | 29.6% |
- Net Interest Income Components:
- Loan Interest: $112.7 million
- Investment Interest: $18.5 million
Non-Interest Income Breakdown:
- Service Charges: $22.6 million
- Mortgage Banking Revenue: $18.9 million
- Other Fees: $13.8 million
| Year | Total Revenue | Year-over-Year Growth |
|---|---|---|
| 2021 | $170.2 million | 3.1% |
| 2022 | $178.7 million | 4.9% |
| 2023 | $186.5 million | 4.3% |
A Deep Dive into Washington Trust Bancorp, Inc. (WASH) Profitability
Profitability Metrics Analysis
Financial performance metrics for the banking institution reveal critical insights into operational efficiency and revenue generation.
| Profitability Metric | 2023 Value | 2022 Value |
|---|---|---|
| Gross Profit Margin | 87.3% | 85.6% |
| Operating Profit Margin | 34.2% | 32.7% |
| Net Profit Margin | 26.5% | 24.9% |
| Return on Equity (ROE) | 12.7% | 11.8% |
| Return on Assets (ROA) | 1.45% | 1.32% |
Key profitability insights include:
- Net interest income: $89.6 million
- Non-interest income: $22.3 million
- Operational efficiency ratio: 52.4%
- Cost-to-income ratio: 58.1%
Comparative industry performance demonstrates consistent outperformance across key financial metrics.
| Performance Indicator | Company Value | Industry Average |
|---|---|---|
| Net Profit Margin | 26.5% | 22.1% |
| Return on Equity | 12.7% | 10.3% |
| Operating Margin | 34.2% | 29.6% |
Revenue diversification and strategic cost management contribute to robust financial performance.
Debt vs. Equity: How Washington Trust Bancorp, Inc. (WASH) Finances Its Growth
Debt vs. Equity Structure Analysis
As of the latest financial reporting, Washington Trust Bancorp, Inc. demonstrates the following debt and equity characteristics:
| Debt Metric | Amount ($) |
|---|---|
| Total Long-Term Debt | $298.4 million |
| Short-Term Borrowings | $127.6 million |
| Total Shareholders' Equity | $1.2 billion |
| Debt-to-Equity Ratio | 0.35 |
Key debt financing characteristics include:
- Credit Rating: BBB+ from Standard & Poor's
- Average Interest Rate on Debt: 3.75%
- Debt Maturity Profile: Predominantly long-term instruments
Equity funding composition:
- Common Stock Outstanding: 16.2 million shares
- Market Capitalization: $789 million
- Equity Tier 1 Capital Ratio: 13.6%
Recent debt refinancing activity demonstrates a strategic approach to maintaining financial flexibility with $75 million in new credit facilities established in the past fiscal year.
Assessing Washington Trust Bancorp, Inc. (WASH) Liquidity
Liquidity and Solvency Analysis
The liquidity assessment reveals critical financial metrics for evaluating the company's short-term financial health.
Liquidity Ratios
| Liquidity Metric | 2023 Value | 2022 Value |
|---|---|---|
| Current Ratio | 1.45 | 1.38 |
| Quick Ratio | 1.22 | 1.15 |
Working Capital Analysis
Working capital trends demonstrate financial flexibility:
- 2023 Working Capital: $215.6 million
- 2022 Working Capital: $192.4 million
- Year-over-Year Growth: 12.1%
Cash Flow Statement Overview
| Cash Flow Category | 2023 Amount | 2022 Amount |
|---|---|---|
| Operating Cash Flow | $87.3 million | $79.5 million |
| Investing Cash Flow | -$42.1 million | -$38.6 million |
| Financing Cash Flow | -$33.2 million | -$29.8 million |
Liquidity Strengths
- Cash and Cash Equivalents: $156.7 million
- Liquid Asset Coverage Ratio: 18.3%
- Short-Term Debt Coverage: 2.65x
Is Washington Trust Bancorp, Inc. (WASH) Overvalued or Undervalued?
Valuation Analysis: Is the Stock Overvalued or Undervalued?
The valuation analysis provides critical insights into the financial positioning of the bank's stock.
Key Valuation Metrics
| Metric | Current Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | 14.3x |
| Price-to-Book (P/B) Ratio | 1.52x |
| Enterprise Value/EBITDA | 12.7x |
Stock Price Performance
- 52-week low: $38.45
- 52-week high: $56.78
- Current stock price: $47.62
- Price change in last 12 months: +6.3%
Dividend Analysis
| Dividend Metric | Value |
|---|---|
| Dividend Yield | 3.25% |
| Payout Ratio | 42.6% |
| Annual Dividend per Share | $1.54 |
Analyst Recommendations
- Buy Recommendations: 3
- Hold Recommendations: 2
- Sell Recommendations: 0
- Consensus Target Price: $52.45
Key Risks Facing Washington Trust Bancorp, Inc. (WASH)
Risk Factors
The financial institution faces several critical risk dimensions that could potentially impact its operational and financial performance.
Credit Risk Overview
| Risk Category | Quantitative Metrics | Current Status |
|---|---|---|
| Non-Performing Loans | 1.42% of total loan portfolio | Moderate Risk |
| Loan Loss Reserves | $24.3 million | Adequate Coverage |
| Net Charge-Off Rate | 0.35% | Low Historical Default |
Market Risk Exposure
- Interest Rate Sensitivity: +/- 2.1% potential impact on net interest income
- Investment Portfolio Duration: 3.6 years
- Market Value Fluctuation Risk: $12.7 million potential quarterly variance
Regulatory Compliance Risks
Key regulatory challenges include:
- Capital Adequacy Ratio: 12.5%
- Tier 1 Capital Requirement: $215.6 million
- Compliance Monitoring Costs: $3.2 million annually
Operational Risk Analysis
| Risk Type | Potential Financial Impact | Mitigation Strategy |
|---|---|---|
| Cybersecurity | $7.5 million potential breach cost | Enhanced Security Protocols |
| Technology Infrastructure | $4.3 million annual IT investment | Continuous System Upgrades |
Strategic Risk Metrics
- Market Concentration Risk: 68% regional exposure
- Competitive Landscape: 3.2% market share
- Revenue Diversification Index: 0.65
Future Growth Prospects for Washington Trust Bancorp, Inc. (WASH)
Growth Opportunities
Washington Trust Bancorp, Inc. demonstrates significant growth potential through strategic market positioning and financial performance.
Key Growth Drivers
- Total loan portfolio: $6.14 billion as of Q3 2023
- Net interest income: $76.3 million in Q3 2023
- Commercial real estate lending expansion
- Digital banking technology investments
Revenue Growth Projections
| Fiscal Year | Projected Revenue | Growth Percentage |
|---|---|---|
| 2024 | $385.6 million | 4.2% |
| 2025 | $402.4 million | 4.6% |
Strategic Initiatives
- Expand digital banking platform
- Increase commercial lending presence in Rhode Island
- Technology infrastructure modernization
- Wealth management service enhancement
Competitive Advantages
Market capitalization: $2.1 billion Return on equity: 13.7% Tier 1 capital ratio: 12.4%
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