Washington Trust(US:WASH)2022-08-04 15:15Financial Performance - Net interest income for Q2 2022 was $37.5 million, an increase of 8% from $34.8 million in Q2 2021[195]. - Noninterest income decreased by 23% to $15.9 million in Q2 2022, down from $20.6 million in Q2 2021[195]. - Total revenues for the first half of 2022 were $105.6 million, an 8% decline from $114.2 million in the same period of 2021[195]. - Net income for Q2 2022 was $20.0 million, a 14% increase compared to $17.5 million in Q2 2021[195]. - Noninterest expenses decreased by 6% to $31.1 million in Q2 2022, down from $33.0 million in Q2 2021[195]. - Noninterest income for the three and six months ended June 30, 2022, was $15.9 million and $33.0 million, respectively, reflecting decreases of 23% and 29% compared to the same periods in 2021[229]. Credit Losses and Provisions - The provision for credit losses was a negative $3.0 million in Q2 2022, indicating a reduction in expected credit losses[195]. - The provision for credit losses recorded a negative provision of $3.0 million for the three months ended June 30, 2022, compared to no provision for the same period in 2021[224]. - The Allowance for Credit Losses (ACL) on loans was $36.3 million at June 30, 2022, down by $2.8 million from December 31, 2021, with a reserve coverage ratio of 0.81%[339]. - Total past due loans decreased to $8.6 million as of June 30, 2022, down by $1.9 million from December 31, 2021[325]. Asset and Loan Growth - Total loans increased to $4.35 billion for the three months ended June 30, 2022, compared to $4.24 billion in the same period of 2021, reflecting a growth of 2.6%[204]. - Total assets of the company reached $5.84 billion as of June 30, 2022, slightly up from $5.83 billion as of June 30, 2021, indicating a marginal increase of 0.1%[204]. - Total loans amounted to $4.480 billion at June 30, 2022, reflecting an increase of $206.9 million, or 5%, from the end of 2021[259]. - Residential real estate loans increased to $2.0 billion, up by $239.4 million, or 14%, from December 31, 2021, representing 44% of total loans[290]. Interest Income and Margins - The net interest income as a percentage of total revenues increased to 70% in Q2 2022, compared to 63% in Q2 2021[195]. - The interest rate spread improved to 2.61% for the three months ended June 30, 2022, compared to 2.47% in the same period of 2021, indicating a positive change of 0.14%[204]. - The net interest margin increased to 2.71% for the three months ended June 30, 2022, up from 2.55% in the same period of 2021, reflecting an improvement of 0.16%[204]. Wealth Management - Wealth management revenues represented 62% of total noninterest income for the six months ended June 30, 2022, compared to 44% for the same period in 2021[230]. - Wealth management revenues for the three months ended June 30, 2022 decreased by $362 thousand, or 3%, compared to the same period in 2021, while for the six months, revenues increased by $274 thousand, or 1%[231]. - Wealth management assets under administration (AUA) amounted to $6.7 billion at June 30, 2022, reflecting a decline primarily due to net investment depreciation from recent financial market declines[234]. Deposits and Funding - Total deposits reached $5.0 billion as of June 30, 2022, an increase of $26.6 million, or 1%, from December 31, 2021[350]. - In-market deposits increased by $83.1 million, or 2%, while wholesale brokered deposits declined by $56.5 million, or 11%[350]. - FHLB advances totaled $328.0 million at June 30, 2022, up by $183.0 million, or 126%, from the end of 2021[351]. Shareholders' Equity and Capital Ratios - Shareholders' equity decreased by $88.2 million, or 16%, largely due to a decline in the accumulated other comprehensive loss (AOCL) component[262]. - The total risk-based capital ratio was 13.51% at June 30, 2022, compared to 14.01% at December 31, 2021[363]. Operational Highlights - The company plans to open a new full-service branch in Cumberland, Rhode Island, in Q3 2022[179]. - The company opened a new commercial lending office in New Haven, Connecticut, in July 2022[179]. - The Corporation declared a quarterly dividend of $0.54 per share for the three months ended June 30, 2022, compared to $0.52 per share for the same period in 2021[362].