Exhibit 99
![]() | NEWS RELEASE |
FOR IMMEDIATE RELEASE
SANDY SPRING BANCORP REPORTS
FIRST QUARTER RESULTS
INCLUDING MERGER RELATED COSTS
FIRST QUARTER RESULTS
INCLUDING MERGER RELATED COSTS
OLNEY, MARYLAND, April 17, 2007 — Sandy Spring Bancorp, Inc., (Nasdaq-SASR) the parent company of Sandy Spring Bank, today announced net income for the first quarter of 2007 of $7.5 million ($.49 per diluted share) compared to $8.3 million ($.56 per diluted share) for the first quarter of 2006, a decrease of 10%. Net income for the quarter includes after-tax merger costs of $.4 million ($.02 per diluted share). The results of operations for Potomac Bank of Virginia (“Potomac”) are included subsequent to the close of business on February 15, 2007. On the date of purchase, Potomac had total loans of $198 million, total earning assets of $234 million, and total deposits of $197 million.
“On the plus side, we closed our merger with Potomac in mid-quarter, enabling our entry into northern Virginia for the first time in our history. The transaction should be accretive within the first full year of combined operations, but merger expenses had a negative impact on net income this quarter,” said Hunter R. Hollar, President and Chief Executive Officer. “The net interest margin declined to 4.07% from 4.14% at December 31, 2006 and 4.35% a year ago. Competition for demand deposits is tough across all of our markets. We are doing a good job growing loans and improving loan yields, yet rising deposit rates are substantially offsetting these efforts. Credit quality continues to be excellent with net charge-offs of less than one-tenth of 1% of total loans. We hope that as credit quality concerns loom across the banking industry, our stellar record will not be lost on investors.”
“Growth in noninterest income from sales of investment products and in trust and investment management fees continued to be favorable, reflecting our focus on the fee businesses in this rate environment,” said Hollar.
Sandy Spring Bancorp’s return on average stockholders’ equity was 11.96% for the first quarter of 2007, compared to 15.26% for the same period in the prior year. Return on average assets for the first quarter of 2007 was 1.12%, compared to 1.36% for the first quarter of 2006.
Comparing March 31, 2007 balances to March 31, 2006, total assets increased 18% to $2.9 billion due mainly to the acquisition of Potomac Bank of Virginia during the first quarter together with strong growth in the commercial loan portfolio. Total loans and leases increased 17% to $2.0 billion compared to the prior year. The Potomac acquisition accounted for approximately 71% of the year-over-year loan growth. Excluding the Potomac acquisition, the loan portfolio increased 5% over the first quarter of the prior year. This was comprised mainly of an 18% increase in commercial loans
which was somewhat offset by a decline in mortgage loans due to a sale of loans in the third quarter of 2006. Customer funding sources, which include deposits plus other short-term borrowings from core customers, increased 18% to $2.4 billion at March 31, 2007. Again, over 58% of the growth in such funding sources was due to the Potomac acquisition. Excluding the Potomac acquisition, customer funding sources increased 8% over the first quarter of the prior year. Stockholders’ equity totaled $275.3 million at quarter-end, and represented 9.3% of total assets, compared to 9.0% at March 31, 2006.
The provision for loan and lease losses totaled $0.8 million for the first quarter of 2007 compared to $1.0 million for the first quarter of 2006. The allowance for loan and lease losses represented 1.09% of outstanding loans at March 31, 2007.
The Company’s management will host a conference call to discuss its first quarter results today at 2:00 P.M. (ET). A live Web cast of the conference call is available through the Investor Relations’ section of the Sandy Spring Web site at www.sandyspringbank.com.
DETAILED REVIEW OF FINANCIAL RESULTS
Comparing the first quarter of 2007 and 2006, net interest income increased by $0.8 million, or 4%, due primarily to continued growth in the loan portfolio and higher loan yields which were largely offset by increased rates on interest-bearing deposits and an increased use of time deposits, as noninterest bearing deposits continued to decrease. These factors produced a net interest margin decrease to 4.07% in 2007 from 4.35% in 2006.
Noninterest income increased to $10.9 million in the first quarter of 2007 as compared to $9.8 million in 2006, an increase of 11%. Insurance agency commissions increased 28% over 2006 due to higher premiums from commercial property and casualty and physicians liability lines. Service charges on deposit accounts increased 25% while fees on sales of investment products increased 11% over the prior year period due to increased sales volumes. Trust and investment fees increased 8% due mainly to growth in assets under management. Gains on sales of mortgage loans decreased due to market conditions.
Noninterest expenses were $23.6 million in the first quarter of 2007 compared to $20.4 million in 2006, an increase of $3.2 million or 16%. This increase was driven mainly by $.6 million in merger costs together with operating expense of Potomac which combined to add $1.2 million in expenses for the quarter. Excluding expenses related to Potomac, the increase in noninterest expenses was due primarily to a 53% increase in marketing costs due to the timing of campaigns in the first quarter together with increases in salaries and consulting expenses.
About Sandy Spring Bancorp/Sandy Spring Bank
With $2.9 billion in assets, Sandy Spring Bancorp is the holding company for Sandy Spring Bank and its principal subsidiaries, Sandy Spring Insurance Corporation, The Equipment Leasing Company and West Financial Services, Inc. Sandy Spring Bancorp is the second largest publicly traded banking company headquartered in Maryland. Sandy Spring is a community banking organization that focuses its lending and other services on businesses and consumers in the local market area. Independent and community-oriented, Sandy Spring Bank was founded in 1868 and offers a broad range of commercial banking, retail banking and trust services through 38 community offices in Anne Arundel, Carroll, Frederick, Howard, Montgomery, and Prince George’s counties in Maryland, and Fairfax and Loudoun counties in Virginia. Through its subsidiaries, Sandy Spring Bank also offers a comprehensive menu of leasing, insurance and investment management services. Visit www.sandyspringbank.com to locate an ATM near you or for more information about Sandy Spring Bank.
For additional information or questions, please contact:
Hunter R. Hollar, President & Chief Executive Officer, or
Philip J. Mantua, Executive V.P. & Chief Financial Officer
Sandy Spring Bancorp
17801 Georgia Avenue
Olney, Maryland 20832
1-800-399-5919
E-mail: HHollar@sandyspringbank.com
PMantua@sandyspringbank.com
Web site: www.sandyspringbank.com
Philip J. Mantua, Executive V.P. & Chief Financial Officer
Sandy Spring Bancorp
17801 Georgia Avenue
Olney, Maryland 20832
1-800-399-5919
E-mail: HHollar@sandyspringbank.com
PMantua@sandyspringbank.com
Web site: www.sandyspringbank.com
Forward-Looking Statements:Sandy Spring Bancorp makes forward-looking statements in this News Release that are subject to risks and uncertainties. These forward-looking statements include: statements of goals, intentions, earnings expectations, and other expectations; estimates of risks and of future costs and benefits; assessments of probable loan and lease losses; assessments of market risk; and statements of the ability to achieve financial and other goals. These forward-looking statements are subject to significant uncertainties because they are based upon or are affected by: management’s estimates and projections of future interest rates, market behavior, and other economic conditions; future laws and regulations; and a variety of other matters which, by their nature, are subject to significant uncertainties. Because of these uncertainties, Sandy Spring Bancorp’s actual future results may differ materially from those indicated. In addition, the Company’s past results of operations do not necessarily indicate its future results.
Sandy Spring Bancorp, Inc. and Subsidiaries
FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share data)
FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share data)
Three Months Ended | ||||||||||||
March 31, | % | |||||||||||
2007 | 2006 | Change | ||||||||||
Profitability for the period: | ||||||||||||
Net interest income | $ | 24,015 | $ | 23,177 | 4 | |||||||
Provision for loan and lease losses | 839 | 950 | (12 | ) | ||||||||
Noninterest income | 10,906 | 9,846 | 11 | |||||||||
Noninterest expenses | 23,614 | 20,356 | 16 | |||||||||
Income before income taxes | 10,468 | 11,717 | (11 | ) | ||||||||
Net income | $ | 7,545 | 8,340 | (10 | ) | |||||||
Return on average assets | 1.12 | % | 1.36 | % | ||||||||
Return on average equity | 11.96 | % | 15.26 | % | ||||||||
Net interest margin | 4.07 | % | 4.35 | % | ||||||||
Efficiency ratio — GAAP based * | 67.62 | % | 61.64 | % | ||||||||
Efficiency ratio — traditional * | 63.01 | % | 56.91 | % | ||||||||
Per share data: | ||||||||||||
Basic net income | $ | 0.49 | $ | 0.56 | (13 | ) | ||||||
Diluted net income | 0.49 | 0.56 | (13 | ) | ||||||||
Dividends declared | 0.23 | 0.22 | 5 | |||||||||
Book value | 17.51 | 15.21 | 15 | |||||||||
Tangible book value | 13.11 | 13.61 | (4 | ) | ||||||||
Average fully diluted shares | 15,400,865 | 14,924,571 | ||||||||||
At period-end: | ||||||||||||
Assets | $ | 2,945,477 | $ | 2,501,752 | 18 | |||||||
Deposits | 2,274,322 | 1,839,355 | 24 | |||||||||
Loans and leases | 2,036,182 | 1,744,348 | 17 | |||||||||
Securities | 560,940 | 542,053 | 3 | |||||||||
Stockholders’ equity | 275,319 | 225,137 | 22 | |||||||||
Capital and credit quality ratios: | ||||||||||||
Average equity to average assets | 9.32 | % | 8.92 | % | ||||||||
Allowance for loan and lease losses to loans and leases | 1.09 | % | 1.02 | % | ||||||||
Nonperforming assets to total assets | 0.24 | % | 0.12 | % | ||||||||
Annualized net charge-offs to average loans and leases | 0.00 | % | 0.01 | % |
* | The GAAP based efficiency ratio is noninterest expenses divided by net interest income plus noninterest income from the Consolidated Statements of Income. | |
The traditional, non-GAAP efficiency ratio excludes intangible asset amortization from noninterest expenses; excludes securities gains from noninterest income; and adds the tax-equivalent adjustment to net interest income. See the Reconciliation Table included with these Financial Highlights. |
Certain reclassifications and restatements of information previously reported have been made to conform with current presentation.
Sandy Spring Bancorp, Inc. and Subsidiaries
Reconciliation of GAAP-based and Traditional Efficiency Ratios
(In thousands, except per share data)
Reconciliation of GAAP-based and Traditional Efficiency Ratios
(In thousands, except per share data)
Three Months Ended | ||||||||
March 31, | ||||||||
2007 | 2006 | |||||||
Noninterest expenses—GAAP based | $ | 23,614 | $ | 20,356 | ||||
Net interest income plus noninterest income— GAAP based | 34,921 | 33,023 | ||||||
Efficiency ratio—GAAP based | 67.62 | % | 61.64 | % | ||||
Noninterest expenses—GAAP based | $ | 23,614 | $ | 20,356 | ||||
Less non-GAAP adjustment: | ||||||||
Amortization of intangible assets | 802 | 742 | ||||||
Noninterest expenses—traditional ratio | 22,812 | 19,614 | ||||||
Net interest income plus noninterest income— GAAP based | 34,921 | 33,023 | ||||||
Plus non-GAAP adjustment: | ||||||||
Tax-equivalency | 1,285 | 1,442 | ||||||
Less non-GAAP adjustments: | ||||||||
Securities gains | 2 | 0 | ||||||
Net interest income plus noninterest income — traditional ratio | 36,204 | 34,465 | ||||||
Efficiency ratio — traditional | 63.01 | % | 56.91 | % | ||||
Sandy Spring Bancorp, Inc. and Subsidiaries
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except per share data)
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except per share data)
March 31 | December 31 | |||||||||||
2007 | 2006 | 2006 | ||||||||||
Assets | ||||||||||||
Cash and due from banks | $ | 61,145 | $ | 47,707 | $ | 54,945 | ||||||
Federal funds sold | 48,138 | 16,709 | 48,978 | |||||||||
Cash and cash equivalents | 109,283 | 64,416 | 103,923 | |||||||||
Interest-bearing deposits with banks | 28,192 | 684 | 2,974 | |||||||||
Residential mortgage loans held for sale (at fair value) | 9,660 | 7,534 | 10,595 | |||||||||
Investments available-for-sale (at fair value) | 282,023 | 235,407 | 256,845 | |||||||||
Investments held-to-maturity — fair value of $266,937 $295,887 and $273,206, respectively | 261,208 | 290,684 | 267,344 | |||||||||
Other equity securities | 17,709 | 15,962 | 16,719 | |||||||||
Total loans and leases | 2,036,182 | 1,744,348 | 1,805,579 | |||||||||
Less: allowance for loan and lease losses | (22,186 | ) | (17,860 | ) | (19,492 | ) | ||||||
Net loans and leases | 2,013,996 | 1,726,488 | 1,786,087 | |||||||||
Premises and equipment, net | 50,834 | 45,448 | 47,756 | |||||||||
Accrued interest receivable | 16,485 | 12,851 | 15,200 | |||||||||
Goodwill | 53,913 | 10,826 | 12,494 | |||||||||
Other intangible assets, net | 15,244 | 12,916 | 10,653 | |||||||||
Other assets | 86,930 | 78,536 | �� | 79,867 | ||||||||
Total assets | $ | 2,945,477 | $ | 2,501,752 | $ | 2,610,457 | ||||||
Liabilities | ||||||||||||
Noninterest-bearing deposits | $ | 449,604 | $ | 429,062 | $ | 394,662 | ||||||
Interest-bearing deposits | 1,824,718 | 1,410,293 | 1,599,561 | |||||||||
Total deposits | 2,274,322 | 1,839,355 | 1,994,223 | |||||||||
Short-term borrowings | 325,657 | 383,870 | 314,732 | |||||||||
Subordinated debentures | 35,000 | 35,000 | 35,000 | |||||||||
Accrued interest payable and other liabilities | 26,905 | 16,319 | 26,917 | |||||||||
Other long-term borrowings | 8,274 | 2,071 | 1,808 | |||||||||
Total liabilities | 2,670,158 | 2,276,615 | 2,372,680 | |||||||||
Stockholders’ Equity | ||||||||||||
Common stock — par value $1.00; shares authorized 50,000,000; shares issued and outstanding 15,724,895 14,801,934 and 14,826,805, respectively | 15,725 | 14,802 | 14,827 | |||||||||
Additional paid in capital | 60,520 | 26,978 | 27,869 | |||||||||
Retained earnings | 203,044 | 184,344 | 199,102 | |||||||||
Accumulated other comprehensive income(loss) | (3,970 | ) | (987 | ) | (4,021 | ) | ||||||
Total stockholders’ equity | 275,319 | 225,137 | 237,777 | |||||||||
Total liabilities and stockholders’ equity | $ | 2,945,477 | $ | 2,501,752 | $ | 2,610,457 | ||||||
Certain reclassifications and restatements of information previously reported have been made to conform with current presentation.
Sandy Spring Bancorp, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
Three Months Ended | ||||||||
March 31, | ||||||||
2007 | 2006 | |||||||
Interest income: | ||||||||
Interest and fees on loans and leases | $ | 34,574 | $ | 28,858 | ||||
Interest on loans held for sale | 195 | 150 | ||||||
Interest on deposits with banks | 90 | 10 | ||||||
Interest and dividends on securities: | ||||||||
Taxable | 3,871 | 3,031 | ||||||
Exempt from federal income taxes | 2,727 | 3,016 | ||||||
Interest on federal funds sold | 437 | 112 | ||||||
Total interest income | 41,894 | 35,177 | ||||||
Interest expense: | ||||||||
Interest on deposits | 13,788 | 7,674 | ||||||
Interest on short-term borrowings | 3,481 | 3,749 | ||||||
Interest on long-term borrowings | 610 | 577 | ||||||
Total interest expense | 17,879 | 12,000 | ||||||
Net interest income | 24,015 | 23,177 | ||||||
Provision for loan and lease losses | 839 | 950 | ||||||
Net interest income after provision for loan and lease losses | 23,176 | 22,227 | ||||||
Noninterest income: | ||||||||
Securities gains | 2 | 0 | ||||||
Service charges on deposit accounts | 2,308 | 1,848 | ||||||
Gains on sales of mortgage loans | 638 | 782 | ||||||
Fees on sales of investment products | 800 | 718 | ||||||
Trust and investment management fees | 2,281 | 2,116 | ||||||
Insurance agency commissions | 2,690 | 2,108 | ||||||
Income from bank owned life insurance | 684 | 553 | ||||||
Visa check fees | 590 | 535 | ||||||
Other income | 913 | 1,186 | ||||||
Total noninterest income | 10,906 | 9,846 | ||||||
Noninterest expenses: | ||||||||
Salaries and employee benefits | 13,434 | 12,471 | ||||||
Occupancy expense of premises | 2,417 | 2,126 | ||||||
Equipment expenses | 1,602 | 1,316 | ||||||
Marketing | 529 | 341 | ||||||
Outside data services | 926 | 781 | ||||||
Amortization of intangible assets | 802 | 742 | ||||||
Other expenses | 3,904 | 2,579 | ||||||
Total noninterest expenses | 23,614 | 20,356 | ||||||
Income before income taxes | 10,468 | 11,717 | ||||||
Income tax expense | 2,923 | 3,377 | ||||||
Net income | $ | 7,545 | $ | 8,340 | ||||
Basic net income per share | $ | 0.49 | $ | 0.56 | ||||
Diluted net income per share | 0.49 | 0.56 | ||||||
Dividends declared per share | 0.23 | 0.22 |
Certain reclassifications and restatements of information previously reported have been made to conform with current presentation.
Sandy Spring Bancorp, Inc. and Subsidiaries | ||||||||||||||||||||
Historical Trends in Quarterly Financial Data | 2007 | 2006 | ||||||||||||||||||
(Dollars in thousands, except per share data) | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||
Profitability for the quarter: | ||||||||||||||||||||
Tax-equivalent interest income | $ | 43,179 | $ | 42,000 | $ | 41,695 | $ | 39,372 | $ | 36,619 | ||||||||||
Interest expense | 17,879 | 16,770 | 15,896 | 14,021 | 12,000 | |||||||||||||||
Tax-equivalent net interest income | 25,300 | 25,230 | 25,799 | 25,351 | 24,619 | |||||||||||||||
Tax-equivalent adjustment | 1,285 | 1,625 | 1,677 | 1,499 | 1,442 | |||||||||||||||
Provision for loan and lease losses | 839 | 250 | 550 | 1,045 | 950 | |||||||||||||||
Noninterest income | 10,906 | 10,064 | 9,590 | 9,395 | 9,846 | |||||||||||||||
Noninterest expenses | 23,614 | 22,218 | 21,694 | 20,828 | 20,356 | |||||||||||||||
Income before income taxes | 10,468 | 11,201 | 11,468 | 11,374 | 11,717 | |||||||||||||||
Income tax expense | 2,923 | 2,887 | 3,346 | 3,279 | 3,377 | |||||||||||||||
Net Income | 7,545 | 8,314 | 8,122 | 8,095 | 8,340 | |||||||||||||||
Financial ratios: | ||||||||||||||||||||
Return on average assets | 1.12 | % | 1.26 | % | 1.24 | % | 1.27 | % | 1.36 | % | ||||||||||
Return on average equity | 11.96 | % | 13.75 | % | 13.93 | % | 14.34 | % | 15.26 | % | ||||||||||
Net interest margin | 4.07 | % | 4.14 | % | 4.25 | % | 4.30 | % | 4.35 | % | ||||||||||
Efficiency ratio — GAAP based * | 67.62 | % | 65.99 | % | 64.35 | % | 62.65 | % | 61.64 | % | ||||||||||
Efficiency ratio — traditional * | 63.01 | % | 60.85 | % | 59.20 | % | 57.81 | % | 56.91 | % | ||||||||||
Per share data: | ||||||||||||||||||||
Basic net income | $ | 0.49 | $ | 0.56 | $ | 0.55 | $ | 0.55 | $ | 0.56 | ||||||||||
Diluted net income | $ | 0.49 | $ | 0.55 | $ | 0.55 | $ | 0.54 | $ | 0.56 | ||||||||||
Dividends declared | $ | 0.23 | $ | 0.22 | $ | 0.22 | $ | 0.22 | $ | 0.22 | ||||||||||
Book value | $ | 17.51 | $ | 16.04 | $ | 15.92 | $ | 15.48 | $ | 15.21 | ||||||||||
Tangible book value | $ | 13.11 | $ | 14.48 | $ | 14.30 | $ | 13.93 | $ | 13.61 | ||||||||||
Average fully diluted shares | 15,400,865 | 14,940,873 | 14,915,454 | 14,884,677 | 14,924,571 | |||||||||||||||
Noninterest income breakdown: | ||||||||||||||||||||
Securities gains | $ | 2 | $ | 0 | $ | 0 | $ | 1 | $ | 0 | ||||||||||
Service charges on deposit accounts | 2,308 | 2,201 | 1,904 | 1,950 | 1,848 | |||||||||||||||
Gains on sales of mortgage loans | 638 | 929 | 718 | 549 | 782 | |||||||||||||||
Fees on sales of investment products | 800 | 696 | 783 | 763 | 718 | |||||||||||||||
Trust and investment management fees | 2,281 | 2,286 | 2,164 | 2,196 | 2,116 | |||||||||||||||
Insurance agency commissions | 2,690 | 1,345 | 1,406 | 1,618 | 2,108 | |||||||||||||||
Income from bank owned life insurance | 684 | 639 | 591 | 567 | 553 | |||||||||||||||
Visa check fees | 590 | 631 | 603 | 612 | 535 | |||||||||||||||
Other income | 913 | 1,337 | 1,421 | 1,139 | 1,186 | |||||||||||||||
Total | 10,906 | 10,064 | 9,590 | 9,395 | 9,846 | |||||||||||||||
Noninterest expense breakdown: | ||||||||||||||||||||
Salaries and employee benefits | $ | 13,434 | $ | 12,695 | $ | 12,622 | $ | 12,730 | $ | 12,471 | ||||||||||
Occupancy expense of premises | 2,417 | 2,153 | 2,175 | 2,039 | 2,126 | |||||||||||||||
Equipment expenses | 1,602 | 1,364 | 1,384 | 1,412 | 1,316 | |||||||||||||||
Marketing | 529 | 610 | 1,160 | 472 | 341 | |||||||||||||||
Outside data services | 926 | 717 | 872 | 833 | 781 | |||||||||||||||
Amortization of intangible assets | 802 | 740 | 743 | 742 | 742 | |||||||||||||||
Other expenses | 3,904 | 3,939 | 2,738 | 2,600 | 2,579 | |||||||||||||||
Total | 23,614 | 22,218 | 21,694 | 20,828 | 20,356 |
* | The GAAP based efficiency ratio is noninterest expenses divided by net interest income plus noninterest income from the Consolidated Statements of Income. The traditional, non-GAAP efficiency ratio excludes intangible asset amortization expenses from noninterest expenses; excludes security gains from noninterest income; and adds the tax-equivalent adjustment to net interest income. See the Reconciliation Table included with these Historical Trends in Quarterly Financial Data. |
Sandy Spring Bancorp, Inc. and Subsidiaries | ||||||||||||||||||||
Historical Trends in Quarterly Financial Data | 2007 | 2006 | ||||||||||||||||||
(Dollars in thousands, except per share data) | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||
Balance sheets at quarter end: | ||||||||||||||||||||
Residential mortgage loans | $ | 404,177 | $ | 390,852 | $ | 396,811 | $ | 386,805 | $ | 428,698 | ||||||||||
Residential construction loans | 144,744 | 151,399 | 175,067 | 169,564 | 166,767 | |||||||||||||||
Commercial mortgage loans | 621,692 | 509,726 | 505,181 | 461,708 | 425,392 | |||||||||||||||
Commercial construction loans | 225,108 | 192,547 | 185,615 | 214,628 | 188,477 | |||||||||||||||
Commercial loans and leases | 282,854 | 216,238 | 204,023 | 200,712 | 193,524 | |||||||||||||||
Consumer loans | 357,607 | 344,817 | 348,793 | 348,547 | 341,490 | |||||||||||||||
Total loans and leases | 2,036,182 | 1,805,579 | 1,815,490 | 1,781,964 | 1,744,348 | |||||||||||||||
Less: allowance for loan and lease losses | (22,186 | ) | (19,492 | ) | (19,433 | ) | (18,910 | ) | (17,860 | ) | ||||||||||
Net loans and leases | 2,013,996 | 1,786,087 | 1,796,057 | 1,763,054 | 1,726,488 | |||||||||||||||
Goodwill | 53,913 | 12,494 | 12,606 | 12,606 | 12,596 | |||||||||||||||
Other intangible assets, net | 15,244 | 10,653 | 11,431 | 12,173 | 12,916 | |||||||||||||||
Total assets | 2,945,477 | 2,610,457 | 2,600,633 | 2,588,528 | 2,501,752 | |||||||||||||||
Total deposits | 2,274,322 | 1,994,223 | 1,947,850 | 1,818,347 | 1,839,355 | |||||||||||||||
Customer repurchase agreements | 114,712 | 99,382 | 129,213 | 235,853 | 181,520 | |||||||||||||||
Total stockholders’ equity | 275,319 | 237,777 | 235,868 | 228,913 | 225,137 | |||||||||||||||
Quarterly average balance sheets: | ||||||||||||||||||||
Residential mortgage loans | $ | 406,886 | $ | 407,277 | $ | 405,430 | $ | 449,482 | $ | 427,609 | ||||||||||
Residential construction loans | 151,194 | 162,084 | 172,873 | 167,632 | 161,649 | |||||||||||||||
Commercial mortgage loans | 565,277 | 504,698 | 465,989 | 436,036 | 424,467 | |||||||||||||||
Commercial construction loans | 203,371 | 189,027 | 218,798 | 206,419 | 186,606 | |||||||||||||||
Commercial loans and leases | 246,218 | 205,582 | 199,968 | 196,093 | 188,747 | |||||||||||||||
Consumer loans | 353,668 | 346,030 | 346,639 | 345,194 | 339,299 | |||||||||||||||
Total loans and leases | 1,926,614 | 1,814,698 | 1,809,697 | 1,800,856 | 1,728,377 | |||||||||||||||
Securities | 551,566 | 544,877 | 583,156 | 554,157 | 555,061 | |||||||||||||||
Total earning assets | 2,518,797 | 2,416,120 | 2,407,185 | 2,367,100 | 2,294,665 | |||||||||||||||
Total assets | 2,743,890 | 2,610,023 | 2,600,092 | 2,560,633 | 2,484,687 | |||||||||||||||
Total interest-bearing liabilities | 2,048,323 | 1,937,685 | 1,934,668 | 1,895,652 | 1,821,530 | |||||||||||||||
Noninterest-bearing demand deposits | 408,954 | 407,659 | 410,912 | 419,454 | 418,214 | |||||||||||||||
Total deposits | 2,099,409 | 1,970,953 | 1,851,098 | 1,819,255 | 1,799,213 | |||||||||||||||
Customer repurchase agreements | 101,805 | 120,597 | 212,123 | 196,359 | 167,620 | |||||||||||||||
Stockholders’ equity | 255,781 | 239,921 | 231,364 | 226,440 | 221,599 | |||||||||||||||
Capital and credit quality measures: | ||||||||||||||||||||
Average equity to average assets | 9.32 | % | 9.19 | % | 8.90 | % | 8.84 | % | 8.92 | % | ||||||||||
Loan and lease loss allowance to loans and leases | 1.09 | % | 1.08 | % | 1.07 | % | 1.06 | % | 1.02 | % | ||||||||||
Nonperforming assets to total assets | 0.24 | % | 0.15 | % | 0.15 | % | 0.10 | % | 0.12 | % | ||||||||||
Annualized net (charge-offs) recoveries to average loans and leases | 0.00 | % | (0.01 | )% | 0.00 | % | 0.00 | % | 0.01 | % | ||||||||||
Miscellaneous data: | ||||||||||||||||||||
Net (charge-offs) recoveries | $ | 17 | ($191 | ) | ($27 | ) | $ | 5 | $ | 24 | ||||||||||
Nonperforming assets: | ||||||||||||||||||||
Non-accrual loans and leases | 1,982 | 1,910 | 1,495 | 1,691 | 585 | |||||||||||||||
Loans and leases 90 days past due | 5,084 | 1,823 | 2,346 | 988 | 2,473 | |||||||||||||||
Restructured loans and leases | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
Other real estate owned, net | 0 | 182 | 0 | 0 | 0 | |||||||||||||||
Total nonperforming assets | 7,066 | 3,915 | 3,841 | 2,679 | 3,058 | |||||||||||||||
Sandy Spring Bancorp, Inc. and Subsidiaries
CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES
(Dollars in thousands and tax-equivalent)
CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES
(Dollars in thousands and tax-equivalent)
Three Months Ended March 31, | ||||||||||||||||||||||||
2007 | 2006 | |||||||||||||||||||||||
Annualized | Annualized | |||||||||||||||||||||||
Average | Average | Average | Average | |||||||||||||||||||||
Balances | Interest | Yield/Rate | Balances | Interest | Yield/Rate | |||||||||||||||||||
Assets | ||||||||||||||||||||||||
Residential mortgage loans | $ | 406,886 | $ | 6,078 | 5.97 | % | $ | 427,609 | $ | 6,133 | 5.74 | % | ||||||||||||
Residential construction loans | 151,194 | 2,717 | 7.29 | 161,649 | 2,834 | 7.11 | ||||||||||||||||||
Commercial mortgage loans | 565,277 | 10,249 | 7.35 | 424,467 | 7,351 | 7.02 | ||||||||||||||||||
Commercial construction loans | 203,371 | 4,581 | 9.13 | 186,606 | 3,807 | 8.27 | ||||||||||||||||||
Commercial loans and leases | 246,218 | 5,033 | 8.29 | 188,747 | 3,602 | 7.74 | ||||||||||||||||||
Consumer loans | 353,668 | 6,111 | 7.01 | 339,299 | 5,281 | 6.31 | ||||||||||||||||||
Total loans and leases | 1,926,614 | 34,769 | 7.30 | 1,728,377 | 29,008 | 6.79 | ||||||||||||||||||
Securities | 551,566 | 7,883 | 5.86 | 555,061 | 7,489 | 5.51 | ||||||||||||||||||
Interest-bearing deposits with banks | 6,997 | 90 | 5.20 | 958 | 10 | 4.28 | ||||||||||||||||||
Federal funds sold | 33,620 | 437 | 5.27 | 10,269 | 112 | 4.44 | ||||||||||||||||||
TOTAL EARNING ASSETS | 2,518,797 | 43,179 | 6.95 | % | 2,294,665 | 36,619 | 6.46 | % | ||||||||||||||||
Less: allowance for loan and lease losses | (20,667 | ) | (17,316 | ) | ||||||||||||||||||||
Cash and due from banks | 52,004 | 45,570 | ||||||||||||||||||||||
Premises and equipment, net | 49,235 | 45,611 | ||||||||||||||||||||||
Other assets | 144,521 | 116,157 | ||||||||||||||||||||||
Total assets | $ | 2,743,890 | $ | 2,484,687 | ||||||||||||||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||||||||
Interest-bearing demand deposits | $ | 231,152 | $ | 189 | 0.33 | % | $ | 236,570 | $ | 165 | 0.28 | % | ||||||||||||
Regular savings deposits | 163,037 | 156 | 0.39 | 199,281 | 215 | 0.44 | ||||||||||||||||||
Money market savings deposits | 547,135 | 4,974 | 3.69 | 371,686 | 2,349 | 2.56 | ||||||||||||||||||
Time deposits | 749,131 | 8,469 | 4.58 | 573,462 | 4,945 | 3.50 | ||||||||||||||||||
Total interest-bearing deposits | 1,690,455 | 13,788 | 3.31 | 1,380,999 | 7,674 | 2.25 | ||||||||||||||||||
Borrowings | 357,868 | 4,091 | 4.63 | 440,531 | 4,326 | 3.95 | ||||||||||||||||||
TOTAL INTEREST-BEARING LIABILITIES | 2,048,323 | 17,879 | 3.54 | 1,821,530 | 12,000 | 2.66 | ||||||||||||||||||
Noninterest-bearing demand deposits | 408,954 | 418,214 | ||||||||||||||||||||||
Other liabilities | 30,832 | 23,344 | ||||||||||||||||||||||
Stockholder’s equity | 255,781 | 221,599 | ||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 2,743,890 | $ | 2,484,687 | ||||||||||||||||||||
Net interest income and spread | 25,300 | 3.41 | % | 24,619 | 3.80 | % | ||||||||||||||||||
Less: tax equivalent adjustment | 1,285 | 1,442 | ||||||||||||||||||||||
Net interest income | 24,015 | 23,177 | ||||||||||||||||||||||
Interest income/earning assets | 6.95 | % | 6.46 | % | ||||||||||||||||||||
Interest expense/earning assets | 2.88 | 2.11 | ||||||||||||||||||||||
Net interest margin | 4.07 | % | 4.35 | % | ||||||||||||||||||||
* | Interest income includes the effects of annualized taxable-equivalent adjustments (reduced by the nondeductible portion of interest expense) using the appropriate marginal federal income tax rate of 35.00% and, where applicable, the marginal state income tax rate of 6.55% (or a combined marginal federal and state rate of 39.26%), to increase tax-exempt interest income to a taxable-equivalent basis. The annualized taxable-equivalent adjustment amounts utilized in the above table to compute yields aggregated to $5,210,000 in 2007 and $5,847,000 in 2006. |