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Investing.com - Piper Sandler reduced its price target on Washington Trust Bancorp (NASDAQ:WASH) to $27.00 from $28.00 on Thursday, while maintaining an Underweight rating on the stock. Currently trading at $28.36, the stock sits between analysts’ targets ranging from $27 to $35, according to InvestingPro data.
The revision follows Washington Trust Bancorp’s disclosure that its third-quarter 2025 results will be negatively impacted by approximately $11.3 million in charge-offs related to two commercial loans.
The Rhode Island-based bank expects its third-quarter loan loss provision to be approximately $7.0 million, significantly higher than Piper Sandler’s previous estimate of $600,000.
Piper Sandler adjusted its price target to reflect the recent announcement and corresponding decreases in earnings per share estimates for the regional bank.
The new price target assumes shares will trade at approximately 107% of Piper Sandler’s estimated tangible book value per share in one year’s time, down from the previous assumption of 114%.
In other recent news, Washington Trust Bancorp reported a strong performance for the second quarter of 2025, exceeding earnings expectations with an earnings per share (EPS) of $0.68, compared to the projected $0.63. The company’s revenue also slightly surpassed forecasts, reaching $54.3 million against the anticipated $54.07 million. Additionally, Washington Trust Bancorp announced it will pay a quarterly dividend of 56 cents per share for the quarter ending September 30, 2025. This dividend is scheduled for distribution on October 10, 2025, to shareholders recorded by October 1, 2025.
In other developments, Keefe, Bruyette & Woods (KBW) reiterated its Market Perform rating for Washington Trust Bancorp, following the bank’s disclosure of a $7.0 million provision and $11.3 million in net charge-offs due to two commercial credits. The bank’s total nonperforming commercial loans are expected to be reduced to $1 million after these charge-offs. Furthermore, Washington Trust appointed James C. Brown as Senior Executive Vice President and Chief Commercial Banking Officer. Brown will be responsible for overseeing all Commercial Banking activities and expanding the bank’s lending portfolios and commercial deposits.
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