Washington Trust(US:WASH)2022-11-07 16:24Financial Performance - Net interest income for the three months ended September 30, 2022, was $42.0 million, an increase of 17% compared to $36.1 million in the same period of 2021[204] - Noninterest income decreased by 23% to $15.8 million for the three months ended September 30, 2022, down from $20.5 million in the same period of 2021[204] - Total revenues for the three months ended September 30, 2022, were $57.8 million, a slight increase of 2% from $56.6 million in the same period of 2021[204] - Net income for the three months ended September 30, 2022, was $18.7 million, compared to $18.8 million for the same period in 2021, reflecting a decrease of 1%[204] - Noninterest income for the three and nine months ended September 30, 2022, totaled $15.8 million and $48.8 million, reflecting decreases of 23% and 27% compared to the same periods in 2021[240] Credit Losses and Provisions - The provision for credit losses for the three months ended September 30, 2022, was $800,000, compared to no provision in the same period of 2021, indicating a 100% increase[204] - The Corporation recorded a provision for credit losses of $800 thousand for the three months ended September 30, 2022, compared to no provision for the same period in 2021[260] - The allowance for credit losses (ACL) on loans was $36.9 million, or 0.76% of total loans, at September 30, 2022, down from $39.1 million, or 0.91% of total loans, at December 31, 2021[238] - Net charge-offs totaled $54 thousand for the three months ended September 30, 2022, compared to $168 thousand for the same period in 2021[237] Asset and Loan Growth - Total loans increased by $371.8 million to $4.65 billion, with a net interest margin of 3.87% for the three months ended September 30, 2022, compared to 3.33% in the same period of 2021[215] - Total assets increased by $297.0 million to $6.22 billion as of September 30, 2022, compared to $5.92 billion in 2021[215] - Total loans increased by $575.9 million, or 13%, to $4.8 billion at September 30, 2022, driven by growth in the residential real estate portfolio[281] - The residential real estate loan portfolio reached $2.1 billion, up by $417.1 million, or 24%, from December 31, 2021, representing 44% of total loans[300] Noninterest Expenses - The company experienced modest increases in noninterest expenses, but overall noninterest expenses declined year-to-date in 2022 due to reductions in specific expense categories[206] - Noninterest expense for the nine months ended September 30, 2022, decreased by $4.9 million (5%) compared to the same period in 2021, with salaries and employee benefits down by $2.8 million (4%)[251] Wealth Management - Wealth management revenues represented 62% of total noninterest income for the nine months ended September 30, 2022, compared to 46% for the same period in 2021[241] - Wealth management revenues decreased by $930 thousand (9%) for the three months and $656 thousand (2%) for the nine months ended September 30, 2022, compared to the same periods in 2021, primarily due to declines in asset-based revenues[242] - Average assets under administration (AUA) decreased by approximately 11% for the three months and 2% for the nine months ended September 30, 2022, compared to the same periods in 2021, with AUA at $6.3 billion as of September 30, 2022[244] Deposits and Funding - Total deposits reached $5.1 billion as of September 30, 2022, an increase of $89.8 million, or 2%, from December 31, 2021[357] - In-market deposits increased by $161.9 million, or 4%, while wholesale brokered deposits decreased by $72.1 million, or 14%[356] - FHLB advances totaled $700.0 million, up by $555.0 million, or 383%, from the end of 2021, indicating increased reliance on wholesale funding[358] Shareholders' Equity - Shareholders' equity decreased by $67.6 million to $487.2 million as of September 30, 2022, compared to $554.8 million in 2021[215] - Total shareholders' equity decreased to $432.3 million, down by $132.5 million from December 31, 2021, primarily due to a $151.8 million decline in the AOCL component[370] Capital Ratios - The total risk-based capital ratio was 12.65% at September 30, 2022, down from 14.01% at December 31, 2021, indicating a decline in capital adequacy[374] - The ratio of total equity to total assets was 6.75% at September 30, 2022, compared to 9.65% at December 31, 2021[373] Tax and Deferred Assets - Effective income tax rate for the nine months ended September 30, 2022, was 21.5%, a decrease from 21.9% in the same period of 2021, reflecting increased benefits from federal tax credits[256] - Net deferred tax assets increased to $62.1 million at September 30, 2022, compared to $14.0 million at December 31, 2021, primarily due to declines in fair value of securities[257]