Question-and-Answer Session
Operator
Thank you. (Operator instructions) Our first question comes from Frank Schiraldi from Sandler O'Neill, please go ahead.
John Warren
Pretty morning, Frank.
Frank Schiraldi - Sandler O’Neill
Good morning. How you guys doing?
John Warren
Yes, good. Thanks.
Frank Schiraldi - Sandler O’Neill
A question on the margin going forward. CDs continue to run off, demands up nicely, it looks like you're locking into (inaudible) do you expect to continue to see some expansion in the net interest margin going forward?
David Devault
We view that as being relatively neutral with respect to interest rate changes. There was certainly some improvement in the margin in the quarter. I think that where it is for the second quarter is largely representative of where we think it would be in the second half of the year. It could be some seasonal benefit with inflow of demand deposit dollars in the summer season that would help it somewhat in the third quarter, but the second quarter is fairly representative.
Frank Schiraldi - Sandler O’Neill
Okay, thanks. And just looking at loan growth, it looks like commercial real state quarter over quarter was up 16% on annualized. Is there anymore color you can give us on what sort of stuff you are putting on the books, if it's own or occupied, where you are seeing the growth, loan to value, just any sort of more color we can get to get comfortable with that sort of growth?
John Warren
Yes, I mean I think a lot of what we've been seeing Frank is it's sort of split up in two categories. The larger institutions in New England have all – I guess created an environment and at some points helped us out by offering us some very good loans. So we've had a couple of things. We've had the ability to acquire loans that are already outstanding and very highly, high quality, highly rated loans in our review. And at the same time, we're seeing customers out there in our neighborhood that are actually looking to Washington Trust and bringing their business to Washington Trust after years being at some of these other institutions. But once again, very high quality paper.
Frank Schiraldi - Sandler O’Neill
Okay. Would you have numbers on owner-occupied or non-owner-occupied, just on the total commercial real estate portfolio, and then what the quarterly growth or no, is that something I might have to –?
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