FOR IMMEDIATE RELEASE
SANDY SPRING BANCORP REPORTS SECOND QUARTER RESULTS
OLNEY, MARYLAND, July 23, 2009 — Sandy Spring Bancorp, Inc., (Nasdaq-SASR) the parent company of Sandy Spring Bank, today announced a net loss available to common shareholders for the second quarter of 2009 of $1.5 million (($.09) per diluted share) compared to net income of $5.7 million ($.34 per diluted share) for the second quarter of 2008 and net income available to common shareholders of $1.0 million ($.06 per diluted share) for the first quarter of 2009. The second quarter of 2009 included an FDIC special assessment charge of $1.7 million and a provision for loan and lease losses of $10.6 million related primarily to the residential real estate development portfolio.
Net loss available to common shareholders for the six-month period ending June 30, 2009 totaled $465,000 (($.03) per diluted share) compared to net income of $13.9 million ($.84 per diluted share) for the prior year period. The results for the year-to-date include a provision for loan and lease losses totaling $21.2 million for the first six months of 2009 and the FDIC special assessment charge mentioned previously.
“Our second quarter and year-to-date earnings were reduced primarily by the higher level of the provision for loan losses and the special assessment by the FDIC when compared to 2008. As a result of the local and regional economies’ negative impact on our clients, we have continued to build reserves mainly in the residential real estate portfolio,” said Daniel J. Schrider, president and chief executive officer.
“However, on the deposit side of the balance sheet we continued to experience strong deposit growth in the second quarter as our customer funding sources increased 15% over the prior year. This growth is being driven largely by our strategy to capitalize on opportunities resulting from several recent local acquisitions and related efforts to develop new multi-product customer relationships that we can rely upon for the long term to grow our market share in the Mid-Atlantic region.”
“Total loan balances declined for the first six months of 2009 compared to 2008 as overall demand continued to be soft. However, residential mortgage lending was a bright spot as we closed over $250 million in residential mortgage loans during the first six months of the year compared to $146 million in the first six months of last year,” said Schrider. “We view the growth in both residential mortgage activity and deposits as evidence of our success in growing the number of area households that are expanding their use of our full menu of financial services.”
Second Quarter Highlights:
| · | The provision for loan and lease losses totaled $10.6 million for the quarter compared to $6.2 million for the second quarter of 2008 and $10.6 million for the first quarter of 2009. The provision was due to continued internal risk rating downgrades, charge-offs and additional specific reserves primarily related to loans in the residential real estate development portfolio. |
| · | The net interest margin was 3.11% for the second quarter compared to 3.96% for the second quarter of 2008 and 3.39% for the first quarter of 2009. |
| · | Noninterest expenses increased 8% for the quarter compared to the second quarter of 2008 and increased 11% versus the first quarter of 2009. Excluding the FDIC special assessment charge in the second quarter, noninterest expenses increased 1% compared to the second quarter of 2008.These results reflect a continuing emphasis on expense control which originated with project LIFT, a previously disclosed initiative for improved management of operating expenses. |
| · | Customer funding sources, comprised of deposits and other short-term borrowings from core customers, increased 15% compared to the balance at June 30, 2008, and also increased 4% over the balance at March 31, 2009. These increases were due primarily to growth in the Company’s new Premier money market savings product and growth in noninterest-bearing deposits. |
Review of Balance Sheet and Credit Quality
Comparing June 30, 2009 balances to June 30, 2008, total assets increased 14% to $3.6 billion. Asset growth was reflected primarily in increases of 105% in investments and 64% in cash and cash equivalents. This growth was due mainly to a 16% increase in deposits. Total loans and leases decreased 2% to $2.4 billion compared to the prior year. This decrease in loans was due mainly to a net 11% decrease in residential mortgage loans which was somewhat offset by a 5% increase in consumer loans. Total loans decreased 3% compared to the first quarter of 2009.
Customer funding sources, which include deposits plus other short-term borrowings from core customers, increased 15% to $2.7 billion at June 30, 2009 compared to the prior year. Such customer funding sources also increased 4% compared to the first quarter of 2009. These increases were due primarily to growth resulting from the Company’s new Premier money market account as well as growth in noninterest-bearing deposits.
Stockholders’ equity totaled $391.3 million at June 30, 2009, and represented 10.8% of total assets, compared to 10.1% at June 30, 2008. At June 30, 2009 the Company had a total risk-based capital ratio of 13.86%, a tier 1 risk-based capital ratio of 12.60% and a tier 1 leverage ratio of 9.95% which were all above amounts needed in order to be categorized as “well capitalized” for regulatory purposes.
The provision for loan and lease losses totaled $10.6 million for the second quarter of 2009 compared to $6.2 million for the second quarter of 2008 and $10.6 million for the first quarter of 2009. As discussed above, these increases were primarily due to internal risk rating downgrades, charge-offs and additional specific reserves primarily related to loans in the residential real estate development portfolio.
Loan charge-offs, net of recoveries totaled $12.1 million for the second quarter of 2009 compared to net charge-offs of $0.6 million for the second quarter of 2008 and net charge-offs of $1.3 million for the first quarter of 2009. The allowance for loan and lease losses represented 2.44% of outstanding loans and leases and 42% of non-performing loans at June 30, 2009 compared to 2.43% of outstanding loans and leases and 50% of non-performing loans at March 31, 2009 and 1.38% of outstanding loans and leases and 53% of non-performing loans at June 30, 2008.
Non-performing assets totaled $146.3 million at June 30, 2009 compared to $64.9 million at June 30, 2008 and $125.8 million at March 31, 2009. The increase over the prior year was due primarily to $60.5 million in real estate development loans, $6.2 million in residential mortgage loans and $3.2 million in commercial loans that together totaled $69.9 million. The increase over the first quarter of 2009 was due primarily to $23.4 million in residential real estate development loans and $6.2 million in residential mortgage loans.
Income Statement Review
Comparing the second quarter of 2009 and 2008, net interest income decreased by $2.7 million, or 10%, due primarily to the decline in loan demand caused by the current state of the economy. This required the Company to invest the funds generated from deposit growth in investment securities with lower comparative yields thus exerting downward pressure on the net interest margin. Net interest income for the quarter was also negatively affected by the growth in nonperforming loans discussed above. These factors produced a net interest margin decrease to 3.11% in 2009 from 3.96% in 2008.
Noninterest income decreased 6% to $11.0 million in the second quarter of 2009 as compared to $11.7 million in the second quarter of 2008. Service charges on deposit accounts decreased $0.4 million or 11% due primarily to lower overdraft fees. Fees on sales of investment products decreased $0.3 million or 31% compared to the second quarter of 2008 and trust and investment management fees declined $0.1 million or 5%, both of which were due primarily to a decline in assets under management. In addition, insurance agency commissions decreased $0.3 million or 23% due to the overall effect of the current economy. These decreases were somewhat offset by an increase in gains on sales of mortgage loans of $0.1 million or 20% due largely to higher mortgage refinancing volumes reflecting market conditions. Other noninterest income also increased $0.4 million or 23% compared to the second quarter of 2008.
Noninterest expenses were $26.9 million in the second quarter of 2009 compared to $24.9 million in the second quarter of 2008, an increase of $2.0 million or 8%. This increase was due in large part to an increase of $2.4 million in FDIC insurance expense resulting primarily from a one time special assessment by the FDIC which totaled $1.7 million. Salaries and benefits expenses decreased $0.2 million or 1%, while occupancy and equipment expenses decreased $0.3 million or 6% compared to the second quarter of 2008. The overall noninterest expense performance continues to reflect the effect of stringent expense controls implemented as part of project LIFT.
Comparing the first six months of 2009 and 2008, net interest income decreased by $4.2 million, or 8% due primarily to the downward pressure on the net interest margin resulting from the lack of loan demand which caused the Company to invest the funds generated by the growth in deposits into investment securities which carry a lower yield as mentioned above. Net interest income for the year-to-date was also negatively affected by the growth in nonperforming loans mentioned above. These factors produced a net interest margin decrease to 3.24% in 2009 from 3.97% in 2008.
Noninterest income decreased 6% to $23.0 million for the first six months of 2009 as compared to $24.4 million in 2008. Service charges on deposit accounts decreased $0.5 million or 8% due primarily to lower overdraft fees while insurance agency commissions decreased $0.4 million or 10%. Fees on sales of investment products decreased $0.4 million or 23% and trust and investment management fees declined $0.2 million or 5%, both of which were due primarily to a decline in assets under management. These decreases were somewhat offset by an increase in gains on sales of mortgage loans of $0.4 million or 31% due largely to higher mortgage refinancing volumes reflecting market conditions. Other noninterest income also increased $0.2 million or 8% compared to 2008.
Noninterest expenses were $51.1 million for the first six months of 2009 compared to $49.6 million in 2008, an increase of $1.5 million or 3%. This increase was due primarily to an increase of $2.9 million in FDIC insurance expense which includes a one time special assessment in the second quarter by the FDIC of $1.7 million. Salaries and benefits expenses decreased $0.7 million or 3%, while marketing expenses decreased $0.1 million or 8% and expenses for outside data services decreased $0.4 million or 20% compared to the first six months of 2008.
Conference Call
The Company’s management will host a conference call to discuss its second 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. Participants may call 888-569-5033. A password is not necessary. Visitors to the Web site are advised to log on 10 minutes ahead of the scheduled start of the call. An internet-based replay will be available at the Web site until 12:00 midnight (ET) August 23, 2009. A telephone voice replay will also be available during that same time period at 888-203-1112. Please use pass code #7314001 to access.
About Sandy Spring Bancorp/Sandy Spring Bank
With $3.6 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 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 42 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:
Daniel J. Schrider, President & Chief Executive Officer, or
Philip J. Mantua, E.V.P. & Chief Financial Officer
Sandy Spring Bancorp
17801 Georgia Avenue
Olney, Maryland 20832
1-800-399-5919
Email: DSchrider@sandyspringbank.com
PMantua@sandyspringbank.com
Web site: www.sandyspringbank.com
Forward-Looking Statements
Sandy Spring Bancorp makes forward-looking statements in this news release and in the conference call regarding this news release. These forward-looking statements may 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.
Forward-looking statements are typically identified by words such as “believe,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,” “forecast,” “project” and other similar words and expressions. Forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made. Sandy Spring Bancorp does not assume any duty and does not undertake to update its forward-looking statements. Because forward-looking statements are subject to assumptions and uncertainties, actual results or future events could differ, possibly materially, from those that Sandy Spring Bancorp anticipated in its forward-looking statements, and future results could differ materially from historical performance.
Sandy Spring Bancorp’s forward-looking statements are subject to the following principal risks and uncertainties: general economic conditions and trends, either nationally or locally; conditions in the securities markets; changes in interest rates; changes in deposit flows, and in the demand for deposit, loan, and investment products and other financial services; changes in real estate values; changes in the quality or composition of the Company’s loan or investment portfolios; changes in competitive pressures among financial institutions or from non-financial institutions; the Company’s ability to retain key members of management; changes in legislation, regulations, and policies; and a variety of other matters which, by their nature, are subject to significant uncertainties. Sandy Spring Bancorp provides greater detail regarding some of these factors in its Form 10-K for the year ended December 31, 2008, including in the Risk Factors section of that report, and in its other SEC reports. Sandy Spring Bancorp’s forward-looking statements may also be subject to other risks and uncertainties, including those that it may discuss elsewhere in this news release or in its filings with the SEC, accessible on the SEC’s Web site at www.sec.gov.
Sandy Spring Bancorp, Inc. and Subsidiaries
FINANCIAL HIGHLIGHTS (Unaudited)
(Dollars in thousands, except per share data)
| | | Three Months Ended | | | | | | Six Months Ended | | | | |
| | | June 30, | | | % | | | June 30, | | | % | |
| | | 2009 | | | 2008 | | | Change | | | 2009 | | | 2008 | | | Change | |
| Profitability for the period: | | | | | | | | | | | | | | | | | | |
| Net interest income | | $ | 24,448 | | | $ | 27,119 | | | | (10 | )% | | $ | 49,473 | | | $ | 53,698 | | | | (8 | )% |
| Provision for loan and lease losses | | | 10,615 | | | | 6,189 | | | | 72 | | | | 21,228 | | | | 8,856 | | | | 140 | |
| Noninterest income | | | 11,030 | | | | 11,695 | | | | (6 | ) | | | 23,004 | | | | 24,391 | | | | (6 | ) |
| Noninterest expenses | | | 26,858 | | | | 24,886 | | | | 8 | | | | 51,108 | | | | 49,589 | | | | 3 | |
| Income (loss) before income taxes | | | (1,995 | ) | | | 7,739 | | | | (126 | ) | | | 141 | | | | 19,644 | | | | (99 | ) |
| Net income (loss) | | $ | (280 | ) | | $ | 5,651 | | | | (105 | ) | | $ | 1,937 | | | $ | 13,856 | | | | (86 | ) |
| Net income (loss) available to common shareholders | | $ | (1,482 | ) | | $ | 5,651 | | | | (126 | ) | | $ | (465 | ) | | $ | 13,856 | | | | (103 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Return on average assets (1) | | | (0.17 | )% | | | 0.73 | % | | | | | | | (0.03 | )% | | | 0.90 | % | | | | |
| Return on average common equity (1) | | | (1.90 | )% | | | 7.09 | % | | | | | | | (0.30 | )% | | | 8.76 | % | | | | |
| Net interest margin | | | 3.11 | % | | | 3.96 | % | | | | | | | 3.24 | % | | | 3.97 | % | | | | |
| Efficiency ratio - GAAP * | | | 75.70 | % | | | 64.11 | % | | | | | | | 70.52 | % | | | 63.50 | % | | | | |
| Efficiency ratio - Non-GAAP * | | | 70.58 | % | | | 59.73 | % | | | | | | | 65.85 | % | | | 59.45 | % | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Per share data: | | | | | | | | | | | | | | | | | | | | | | | | |
| Basic net income (loss) | | $ | (0.02 | ) | | $ | 0.35 | | | | (106 | )% | | $ | 0.12 | | | $ | 0.85 | | | | (86 | )% |
| Basic net income (loss) per common share | | | (0.09 | ) | | | 0.35 | | | | (126 | ) | | | (0.03 | ) | | | 0.85 | | | | (104 | ) |
| Diluted net income (loss) | | | (0.02 | ) | | | 0.34 | | | | (106 | ) | | | 0.12 | | | | 0.84 | | | | (86 | ) |
| Diluted net income (loss) per common share | | | (0.09 | ) | | | 0.34 | | | | (126 | ) | | | (0.03 | ) | | | 0.84 | | | | (104 | ) |
| Dividends declared per common share | | | 0.12 | | | | 0.24 | | | | (50 | ) | | | 0.24 | | | | 0.48 | | | | (50 | ) |
| Book value | | | 18.92 | | | | 19.56 | | | | (3 | ) | | | 18.92 | | | | 19.56 | | | | (3 | ) |
| Average fully diluted shares | | | 16,444,252 | | | | 16,427,213 | | | | | | | | 16,424,490 | | | | 16,417,511 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| At period-end: | | | | | | | | | | | | | | | | | | | | | | | | |
| Assets | | $ | 3,617,497 | | | $ | 3,164,123 | | | | 14 | % | | $ | 3,617,497 | | | $ | 3,164,123 | | | | 14 | % |
| Deposits | | | 2,650,485 | | | | 2,294,791 | | | | 16 | | | | 2,650,485 | | | | 2,294,791 | | | | 16 | |
| Total loans and leases | | | 2,389,389 | | | | 2,428,948 | | | | (2 | ) | | | 2,389,389 | | | | 2,428,948 | | | | (2 | ) |
| Securities | | | 875,374 | | | | 427,232 | | | | 105 | | | | 875,374 | | | | 427,232 | | | | 105 | |
| Stockholders' equity | | | 391,262 | | | | 320,218 | | | | 22 | | | | 391,262 | | | | 320,218 | | | | 22 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Capital and credit quality ratios: | | | | | | | | | | | | | | | | | | | | | | | | |
| Average equity to average assets | | | 11.08 | % | | | 10.22 | % | | | | | | | 11.33 | % | | | 10.25 | % | | | | |
| Allowance for loan and lease losses to loans and leases | | | 2.44 | % | | | 1.38 | % | | | | | | | 2.44 | % | | | 1.38 | % | | | | |
| Nonperforming assets to total assets | | | 4.05 | % | | | 2.05 | % | | | | | | | 4.05 | % | | | 2.05 | % | | | | |
| Annualized net charge-offs to average loans and leases | | | 1.97 | % | | | 0.11 | % | | | | | | | 1.09 | % | | | 0.04 | % | | | | |
(1) Calculation utilizes net income available to common shareholders
| * | The GAAP 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. |
Sandy Spring Bancorp, Inc. and Subsidiaries
Reconciliation of GAAP and Non-GAAP Efficiency Ratios (Unaudited)
(In thousands)
| | | Three Months Ended | | | Six Months Ended | |
| | | June 30, | | | June 30, | |
| | | 2009 | | | 2008 | | | 2009 | | | 2008 | |
| GAAP efficiency ratio: | | | | | | | | | | | | |
| Noninterest expenses–GAAP | | $ | 26,858 | | | $ | 24,886 | | | $ | 51,108 | | | $ | 49,589 | |
| | | | | | | | | | | | | | | | | |
| Net interest income plus noninterest income | | | 35,478 | | | | 38,814 | | | | 72,477 | | | | 78,089 | |
| | | | | | | | | | | | | | | | | |
| Efficiency ratio–GAAP | | | 75.70 | % | | | 64.12 | % | | | 70.52 | % | | | 63.50 | % |
| | | | | | | | | | | | | | | | | |
| Non-GAAP efficiency ratio: | | | | | | | | | | | | | | | | |
| Noninterest expenses | | $ | 26,858 | | | $ | 24,886 | | | $ | 51,108 | | | $ | 49,589 | |
| Less non-GAAP adjustment: | | | | | | | | | | | | | | | | |
| Amortization of intangible assets | | | 1,047 | | | | 1,117 | | | | 2,102 | | | | 2,241 | |
| Noninterest expenses–as adjusted | | | 25,811 | | | | 23,769 | | | | 49,006 | | | | 47,348 | |
| | | | | | | | | | | | | | | | | |
| Net interest income plus noninterest income | | | 35,478 | | | | 38,814 | | | | 72,477 | | | | 78,089 | |
| Plus non-GAAP adjustment: | | | | | | | | | | | | | | | | |
| Tax-equivalency | | | 1,123 | | | | 1,061 | | | | 2,132 | | | | 2,201 | |
| Less non-GAAP adjustments: | | | | | | | | | | | | | | | | |
| Securities gains | | | 30 | | | | 79 | | | | 192 | | | | 653 | |
| Net interest income plus noninterest income – as adjusted | | | 36,571 | | | | 39,796 | | | | 74,417 | | | | 79,637 | |
| | | | | | | | | | | | | | | | | |
| Efficiency ratio – Non-GAAP | | | 70.58 | % | | | 59.73 | % | | | 65.85 | % | | | 59.45 | % |
Sandy Spring Bancorp, Inc. and Subsidiaries
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except per share data)
| | | June 30 (Unaudited) | | | December 31 | |
| | | 2009 | | | 2008 | | | 2008 | |
| Assets | | | | | | | | | |
| Cash and due from banks | | $ | 43,360 | | | $ | 62,630 | | | $ | 44,738 | |
| Federal funds sold | | | 2,034 | | | | 11,678 | | | | 1,110 | |
| Interest-bearing deposits with banks | | | 77,090 | | | | 462 | | | | 59,381 | |
| Cash and cash equivalents | | | 122,484 | | | | 74,770 | | | | 105,229 | |
| | | | | | | | | | | | | |
| Residential mortgage loans held for sale (at fair value) | | | 14,494 | | | | 12,087 | | | | 11,391 | |
| Investments available-for-sale (at fair value) | | | 697,314 | | | | 218,323 | | | | 291,727 | |
| Investments held-to-maturity - fair value of $150,109 $184,540 and $175,908, respectively | | | 145,937 | | | | 180,556 | | | | 171,618 | |
| Other equity securities | | | 32,123 | | | | 28,353 | | | | 29,146 | |
| | | | | | | | | | | | | |
| Total loans and leases | | | 2,389,389 | | | | 2,428,948 | | | | 2,490,646 | |
| Less: allowance for loan and lease losses | | | (58,317 | ) | | | (33,435 | ) | | | (50,526 | ) |
| Net loans and leases | | | 2,331,072 | | | | 2,395,513 | | | | 2,440,120 | |
| | | | | | | | | | | | | |
| Premises and equipment, net | | | 50,460 | | | | 52,928 | | | | 51,410 | |
| Other real estate owned | | | 6,829 | | | | 1,352 | | | | 2,860 | |
| Accrued interest receivable | | | 13,007 | | | | 12,658 | | | | 11,810 | |
| Goodwill | | | 76,816 | | | | 78,376 | | | | 76,248 | |
| Other intangible assets, net | | | 10,080 | | | | 14,390 | | | | 12,183 | |
| Other assets | | | 116,881 | | | | 94,817 | | | | 109,896 | |
| Total assets | | $ | 3,617,497 | | | $ | 3,164,123 | | | $ | 3,313,638 | |
| | | | | | | | | | | | | |
| Liabilities | | | | | | | | | | | | |
| Noninterest-bearing deposits | | $ | 553,604 | | | $ | 480,861 | | | $ | 461,517 | |
| Interest-bearing deposits | | | 2,096,881 | | | | 1,813,930 | | | | 1,903,740 | |
| Total deposits | | | 2,650,485 | | | | 2,294,791 | | | | 2,365,257 | |
| | | | | | | | | | | | | |
| Short-term borrowings | | | 496,463 | | | | 421,881 | | | | 421,074 | |
| Long-term borrowings | | | 14,434 | | | | 67,070 | | | | 66,584 | |
| Subordinated debentures | | | 35,000 | | | | 35,000 | | | | 35,000 | |
| Accrued interest payable and other liabilities | | | 29,853 | | | | 25,163 | | | | 33,861 | |
| Total liabilities | | | 3,226,235 | | | | 2,843,905 | | | | 2,921,776 | |
| | | | | | | | | | | | | |
| Stockholders' Equity | | | | | | | | | | | | |
Preferred stock— par value $1.00 (liquidation preference of $1,000 per share) shares authorized 83,094, 0 and 83,094, respectively; shares issued and outstanding 83,094, 0 and 83,094, respectively (discount of $3,329, 0 and $3,654, respectively) | | | 79,765 | | | | - | | | | 79,440 | |
| Common stock — par value $1.00; shares authorized 49,916,906 50,000,000 and 49,916,906. respectively; shares issued and outstanding 16,460,921, 16,373,681, and 16,398,523, respectively | | | 16,461 | | | | 16,374 | | | | 16,399 | |
| Warrants | | | 3,699 | | | | - | | | | 3,699 | |
| Additional paid in capital | | | 86,883 | | | | 84,759 | | | | 85,486 | |
| Retained earnings | | | 209,980 | | | | 220,712 | | | | 214,410 | |
| Accumulated other comprehensive loss | | | (5,526 | ) | | | (1,627 | ) | | | (7,572 | ) |
| Total stockholders' equity | | | 391,262 | | | | 320,218 | | | | 391,862 | |
| Total liabilities and stockholders' equity | | $ | 3,617,497 | | | $ | 3,164,123 | | | $ | 3,313,638 | |
Certain reclassifications of information previously reported have been made to conform with current presentation.
Sandy Spring Bancorp, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(In thousands, except per share data)
| | | Three Months Ended | | | Six Months Ended | |
| | | June 30, | | | June 30, | |
| | | 2009 | | | 2008 | | | 2009 | | | 2008 | |
| Interest income: | | | | | | | | | | | | |
| Interest and fees on loans and leases | | $ | 32,066 | | | $ | 36,696 | | | $ | 65,299 | | | $ | 75,165 | |
| Interest on loans held for sale | | | 253 | | | | 122 | | | | 533 | | | | 218 | |
| Interest on deposits with banks | | | 43 | | | | 24 | | | | 89 | | | | 73 | |
| Interest and dividends on securities: | | | | | | | | | | | | | | | | |
| Taxable | | | 4,531 | | | | 1,880 | | | | 7,726 | | | | 4,578 | |
| Exempt from federal income taxes | | | 1,774 | | | | 2,972 | | | | 3,746 | | | | 5,303 | |
| Interest on federal funds sold | | | 1 | | | | 151 | | | | 3 | | | | 430 | |
| Total interest income | | | 38,668 | | | | 41,845 | | | | 77,396 | | | | 85,767 | |
| Interest expense: | | | | | | | | | | | | | | | | |
| Interest on deposits | | | 9,921 | | | | 10,583 | | | | 19,375 | | | | 23,605 | |
| Interest on short-term borrowings | | | 3,614 | | | | 3,063 | | | | 7,060 | | | | 6,342 | |
| Interest on long-term borrowings | | | 685 | | | | 1,080 | | | | 1,488 | | | | 2,122 | |
| Total interest expense | | | 14,220 | | | | 14,726 | | | | 27,923 | | | | 32,069 | |
| Net interest income | | | 24,448 | | | | 27,119 | | | | 49,473 | | | | 53,698 | |
| Provision for loan and lease losses | | | 10,615 | | | | 6,189 | | | | 21,228 | | | | 8,856 | |
| Net interest income after provision for loan and lease losses | | | 13,833 | | | | 20,930 | | | | 28,245 | | | | 44,842 | |
| Noninterest income: | | | | | | | | | | | | | | | | |
| Securities gains | | | 30 | | | | 79 | | | | 192 | | | | 653 | |
| Service charges on deposit accounts | | | 2,851 | | | | 3,202 | | | | 5,714 | | | | 6,232 | |
| Gains on sales of mortgage loans | | | 786 | | | | 653 | | | | 1,808 | | | | 1,375 | |
| Fees on sales of investment products | | | 622 | | | | 905 | | | | 1,322 | | | | 1,727 | |
| Trust and investment management fees | | | 2,370 | | | | 2,505 | | | | 4,657 | | | | 4,902 | |
| Insurance agency commissions | | | 1,040 | | | | 1,357 | | | | 3,090 | | | | 3,443 | |
| Income from bank owned life insurance | | | 725 | | | | 727 | | | | 1,436 | | | | 1,441 | |
| Visa check fees | | | 748 | | | | 761 | | | | 1,386 | | | | 1,457 | |
| Other income | | | 1,858 | | | | 1,506 | | | | 3,399 | | | | 3,161 | |
| Total noninterest income | | | 11,030 | | | | 11,695 | | | | 23,004 | | | | 24,391 | |
| Noninterest expenses: | | | | | | | | | | | | | | | | |
| Salaries and employee benefits | | | 13,704 | | | | 13,862 | | | | 26,908 | | | | 27,625 | |
| Occupancy expense of premises | | | 2,548 | | | | 2,619 | | | | 5,323 | | | | 5,418 | |
| Equipment expenses | | | 1,374 | | | | 1,560 | | | | 2,888 | | | | 2,999 | |
| Marketing | | | 485 | | | | 488 | | | | 905 | | | | 985 | |
| Outside data services | | | 961 | | | | 1,081 | | | | 1,767 | | | | 2,203 | |
| FDIC insurance | | | 2,790 | | | | 421 | | | | 3,749 | | | | 813 | |
| Amortization of intangible assets | | | 1,047 | | | | 1,117 | | | | 2,102 | | | | 2,241 | |
| Other expenses | | | 3,949 | | | | 3,738 | | | | 7,466 | | | | 7,305 | |
| Total noninterest expenses | | | 26,858 | | | | 24,886 | | | | 51,108 | | | | 49,589 | |
| Income (loss) before income taxes | | | (1,995 | ) | | | 7,739 | | | | 141 | | | | 19,644 | |
| Income tax expense (benefit) | | | (1,715 | ) | | | 2,088 | | | | (1,796 | ) | | | 5,788 | |
| Net income(loss) | | $ | (280 | ) | | $ | 5,651 | | | $ | 1,937 | | | $ | 13,856 | |
| Preferred stock dividends and discount accretion | | | 1,202 | | | $ | 0 | | | | 2,402 | | | $ | 0 | |
| Net income (loss) available to common shareholders | | $ | (1,482 | ) | | $ | 5,651 | | | $ | (465 | ) | | $ | 13,856 | |
| | | | | | | | | | | | | | | | | |
| Basic net income (loss) per share | | $ | (0.02 | ) | | $ | 0.35 | | | $ | 0.12 | | | $ | 0.85 | |
| Basic net income (loss) per common share | | | (0.09 | ) | | | 0.35 | | | | (0.03 | ) | | | 0.85 | |
| Diluted net income (loss) per share | | | (0.02 | ) | | | 0.34 | | | | 0.12 | | | | 0.84 | |
| Diluted net income (loss) per common share | | | (0.09 | ) | | | 0.34 | | | | (0.03 | ) | | | 0.84 | |
| Dividends declared per share | | | 0.12 | | | | 0.24 | | | | 0.24 | | | | 0.48 | |
Sandy Spring Bancorp, Inc. and Subsidiaries
Historical Trends in Quarterly Financial Data (Unaudited)
(Dollars in thousands, except per share data)
| | | 2009 | | | 2008 | |
| | | | Q2 | | | | Q1 | | | | Q4 | | | | Q3 | | | | Q2 | | | | Q1 | |
| Profitability for the quarter: | | | | | | | | | | | | | | | | | | | | | | | | |
| Tax-equivalent interest income | | $ | 39,791 | | | $ | 39,737 | | | $ | 42,194 | | | $ | 43,228 | | | $ | 42,906 | | | $ | 45,062 | |
| Interest expense | | | 14,220 | | | | 13,703 | | | | 14,356 | | | | 13,961 | | | | 14,726 | | | | 17,343 | |
| Tax-equivalent net interest income | | | 25,571 | | | | 26,034 | | | | 27,838 | | | | 29,267 | | | | 28,180 | | | | 27,719 | |
| Tax-equivalent adjustment | | | 1,123 | | | | 1,009 | | | | 1,164 | | | | 1,180 | | | | 1,061 | | | | 1,140 | |
| Provision for loan and lease losses | | | 10,615 | | | | 10,613 | | | | 17,791 | | | | 6,545 | | | | 6,189 | | | | 2,667 | |
| Noninterest income | | | 11,030 | | | | 11,974 | | | | 10,973 | | | | 10,879 | | | | 11,695 | | | | 12,696 | |
| Noninterest expenses | | | 26,858 | | | | 24,250 | | | | 27,233 | | | | 25,267 | | | | 24,886 | | | | 24,703 | |
| Income (loss) before income taxes | | | (1,995 | ) | | | 2,136 | | | | (7,377 | ) | | | 7,154 | | | | 7,739 | | | | 11,905 | |
| Income tax expense (benefit) | | | (1,715 | ) | | | (81 | ) | | | (3,941 | ) | | | 1,795 | | | | 2,088 | | | | 3,700 | |
| Net Income (loss) | | | (280 | ) | | | 2,217 | | | | (3,436 | ) | | | 5,359 | | | | 5,651 | | | | 8,205 | |
| Net Income (loss) available to common shareholders | | | (1,482 | ) | | | 1,017 | | | | (3,770 | ) | | | 5,359 | | | | 5,651 | | | | 8,205 | |
| Financial ratios: | | | | | | | | | | | | | | | | | | | | | | | | |
| Return on average assets | | | -0.17 | % | | | 0.12 | % | | | -0.42 | % | | | 0.67 | % | | | 0.73 | % | | | 1.07 | % |
| Return on average common equity | | | -1.90 | % | | | 1.32 | % | | | -4.70 | % | | | 6.64 | % | | | 7.09 | % | | | 10.45 | % |
| Net interest margin | | | 3.11 | % | | | 3.39 | % | | | 3.73 | % | | | 4.02 | % | | | 3.96 | % | | | 3.99 | % |
| Efficiency ratio - GAAP * | | | 75.70 | % | | | 65.54 | % | | | 72.34 | % | | | 64.84 | % | | | 64.11 | % | | | 62.90 | % |
| Efficiency ratio - Non-GAAP * | | | 70.58 | % | | | 61.29 | % | | | 62.41 | % | | | 58.27 | % | | | 59.73 | % | | | 59.18 | % |
| Per share data: | | | | | | | | | | | | | | | | | | | | | | | | |
| Basic net income (loss) per share | | $ | (0.02 | ) | | $ | 0.14 | | | $ | (0.21 | ) | | $ | 0.33 | | | $ | 0.35 | | | $ | 0.50 | |
| Basic net income (loss) per common share | | $ | (0.09 | ) | | $ | 0.06 | | | $ | (0.23 | ) | | $ | 0.33 | | | $ | 0.35 | | | $ | 0.50 | |
| Diluted net income (loss) per share | | $ | (0.02 | ) | | $ | 0.13 | | | $ | (0.21 | ) | | $ | 0.33 | | | $ | 0.34 | | | $ | 0.50 | |
| Diluted net income (loss) per common share | | $ | (0.09 | ) | | $ | 0.06 | | | $ | (0.23 | ) | | $ | 0.33 | | | $ | 0.34 | | | $ | 0.50 | |
| Dividends declared per common share | | $ | 0.12 | | | $ | 0.12 | | | $ | 0.24 | | | $ | 0.24 | | | $ | 0.24 | | | $ | 0.24 | |
| Book value per common share | | $ | 18.92 | | | $ | 19.06 | | | $ | 19.05 | | | $ | 19.51 | | | $ | 19.56 | | | $ | 19.50 | |
| Average fully diluted shares | | | 16,444,252 | | | | 16,433,788 | | | | 16,434,214 | | | | 16,418,588 | | | | 16,427,213 | | | | 16,407,778 | |
| Noninterest income breakdown: | | | | | | | | | | | | | | | | | | | | | | | | |
| Securities gains | | $ | 30 | | | $ | 162 | | | $ | 1 | | | $ | 9 | | | $ | 79 | | | $ | 574 | |
| Service charges on deposit accounts | | | 2,851 | | | | 2,863 | | | | 3,297 | | | | 3,249 | | | | 3,202 | | | | 3,030 | |
| Gains on sales of mortgage loans | | | 786 | | | | 1,022 | | | | 516 | | | | 397 | | | | 653 | | | | 722 | |
| Fees on sales of investment products | | | 622 | | | | 700 | | | | 928 | | | | 820 | | | | 905 | | | | 822 | |
| Trust and investment management fees | | | 2,370 | | | | 2,287 | | | | 2,201 | | | | 2,380 | | | | 2,505 | | | | 2,397 | |
| Insurance agency commissions | | | 1,040 | | | | 2,050 | | | | 1,183 | | | | 1,282 | | | | 1,357 | | | | 2,086 | |
| Income from bank owned life insurance | | | 725 | | | | 711 | | | | 719 | | | | 742 | | | | 727 | | | | 714 | |
| Visa check fees | | | 748 | | | | 638 | | | | 691 | | | | 727 | | | | 761 | | | | 696 | |
| Other income | | | 1,858 | | | | 1,541 | | | | 1,437 | | | | 1,273 | | | | 1,506 | | | | 1,655 | |
| Total | | | 11,030 | | | | 11,974 | | | | 10,973 | | | | 10,879 | | | | 11,695 | | | | 12,696 | |
| Noninterest expense breakdown: | | | | | | | | | | | | | | | | | | | | | | | | |
| Salaries and employee benefits | | $ | 13,704 | | | $ | 13,204 | | | $ | 13,441 | | | $ | 11,949 | | | $ | 13,862 | | | $ | 13,763 | |
| Occupancy expense of premises | | | 2,548 | | | | 2,775 | | | | 2,612 | | | | 2,732 | | | | 2,619 | | | | 2,799 | |
| Equipment expenses | | | 1,374 | | | | 1,514 | | | | 1,642 | | | | 1,515 | | | | 1,560 | | | | 1,439 | |
| Marketing | | | 485 | | | | 420 | | | | 652 | | | | 526 | | | | 488 | | | | 497 | |
| Outside data services | | | 961 | | | | 806 | | | | 1,054 | | | | 1,116 | | | | 1,081 | | | | 1,122 | |
| FDIC insurance | | | 2,790 | | | | 959 | | | | 458 | | | | 480 | | | | 421 | | | | 392 | |
| Amortization of intangible assets | | | 1,047 | | | | 1,055 | | | | 1,103 | | | | 1,103 | | | | 1,117 | | | | 1,124 | |
| Goodwill impairment loss | | | 0 | | | | 0 | | | | 1,909 | | | | 2,250 | | | | 0 | | | | 0 | |
| Other expenses | | | 3,949 | | | | 3,517 | | | | 4,362 | | | | 3,596 | | | | 3,738 | | | | 3,567 | |
| Total | | | 26,858 | | | | 24,250 | | | | 27,233 | | | | 25,267 | | | | 24,886 | | | | 24,703 | |
| * | 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 (Unaudited)
(Dollars in thousands, except per share data)
| | | 2009 | | | 2008 | |
| | | | Q2 | | | | Q1 | | | | Q4 | | | | Q3 | | | | Q2 | | | | Q1 | |
| Balance sheets at quarter end: | | | | | | | | | | | | | | | | | | | | | | | | |
| Residential mortgage loans | | $ | 450,500 | | | $ | 461,359 | | | $ | 457,571 | | | $ | 452,815 | | | $ | 461,000 | | | $ | 459,768 | |
| Residential construction loans | | | 138,923 | | | | 163,861 | | | | 189,249 | | | | 221,630 | | | | 199,602 | | | | 183,690 | |
| Commercial mortgage loans | | | 862,315 | | | | 859,882 | | | | 847,452 | | | | 804,728 | | | | 752,905 | | | | 732,692 | |
| Commercial construction loans | | | 199,278 | | | | 222,805 | | | | 223,169 | | | | 247,930 | | | | 273,059 | | | | 256,714 | |
| Commercial loans and leases | | | 333,025 | | | | 342,870 | | | | 366,978 | | | | 358,097 | | | | 356,256 | | | | 354,509 | |
| Consumer loans | | | 405,348 | | | | 411,068 | | | | 406,227 | | | | 397,218 | | | | 386,126 | | | | 376,650 | |
| Total loans and leases | | | 2,389,389 | | | | 2,461,845 | | | | 2,490,646 | | | | 2,482,418 | | | | 2,428,948 | | | | 2,364,023 | |
| Less: allowance for loan and lease losses | | | (58,317 | ) | | | (59,798 | ) | | | (50,526 | ) | | | (38,266 | ) | | | (33,435 | ) | | | (27,887 | ) |
| Net loans and leases | | | 2,331,072 | | | | 2,402,047 | | | | 2,440,120 | | | | 2,444,152 | | | | 2,395,513 | | | | 2,336,136 | |
| Goodwill | | | 76,816 | | | | 76,816 | | | | 76,248 | | | | 75,701 | | | | 78,376 | | | | 78,111 | |
| Other intangible assets, net | | | 10,080 | | | | 11,128 | | | | 12,183 | | | | 13,286 | | | | 14,390 | | | | 15,507 | |
| Total assets | | | 3,617,497 | | | | 3,519,432 | | | | 3,313,638 | | | | 3,195,117 | | | | 3,164,123 | | | | 3,160,896 | |
| Total deposits | | | 2,650,845 | | | | 2,553,912 | | | | 2,365,257 | | | | 2,248,812 | | | | 2,294,791 | | | | 2,340,568 | |
| Customer repurchase agreements | | | 98,827 | | | | 91,928 | | | | 75,106 | | | | 77,630 | | | | 93,919 | | | | 101,666 | |
| Total stockholders' equity | | | 391,262 | | | | 392,522 | | | | 391,862 | | | | 319,700 | | | | 320,218 | | | | 318,967 | |
| Quarterly average balance sheets: | | | | | | | | | | | | | | | | | | | | | | | | |
| Residential mortgage loans | | $ | 477,955 | | | $ | 481,721 | | | $ | 457,956 | | | $ | 463,778 | | | $ | 470,144 | | | $ | 463,597 | |
| Residential construction loans | | | 150,914 | | | | 176,811 | | | | 208,616 | | | | 210,363 | | | | 193,822 | | | | 174,626 | |
| Commercial mortgage loans | | | 862,658 | | | | 854,402 | | | | 833,752 | | | | 779,652 | | | | 733,905 | | | | 690,289 | |
| Commercial construction loans | | | 216,897 | | | | 224,229 | | | | 236,176 | | | | 253,806 | | | | 261,360 | | | | 266,098 | |
| Commercial loans and leases | | | 341,039 | | | | 359,820 | | | | 361,731 | | | | 356,327 | | | | 359,287 | | | | 351,862 | |
| Consumer loans | | | 408,200 | | | | 408,843 | | | | 400,937 | | | | 391,640 | | | | 380,911 | | | | 378,261 | |
| Total loans and leases | | | 2,457,663 | | | | 2,505,826 | | | | 2,499,168 | | | | 2,455,566 | | | | 2,399,429 | | | | 2,324,733 | |
| Securities | | | 772,878 | | | | 536,981 | | | | 431,858 | | | | 423,082 | | | | 431,182 | | | | 427,819 | |
| Total earning assets | | | 3,298,923 | | | | 3,117,590 | | | | 2,972,173 | | | | 2,898,968 | | | | 2,862,012 | | | | 2,795,453 | |
| Total assets | | | 3,549,185 | | | | 3,375,715 | | | | 3,235,432 | | | | 3,167,145 | | | | 3,134,440 | | | | 3,072,428 | |
| Total interest-bearing liabilities | | | 2,595,303 | | | | 2,471,762 | | | | 2,405,890 | | | | 2,363,299 | | | | 2,344,266 | | | | 2,311,629 | |
| Noninterest-bearing demand deposits | | | 527,713 | | | | 476,361 | | | | 458,538 | | | | 453,281 | | | | 441,330 | | | | 412,369 | |
| Total deposits | | | 2,581,837 | | | | 2,431,471 | | | | 2,305,880 | | | | 2,264,990 | | | | 2,306,867 | | | | 2,260,837 | |
| Customer repurchase agreements | | | 93,980 | | | | 69,212 | | | | 84,012 | | | | 81,158 | | | | 92,968 | | | | 94,841 | |
| Stockholders' equity | | | 393,201 | | | | 391,673 | | | | 342,639 | | | | 321,028 | | | | 320,409 | | | | 315,755 | |
| Capital and credit quality measures: | | | | | | | | | | | | | | | | | | | | | | | | |
| Average equity to average assets | | | 11.08 | % | | | 11.60 | % | | | 10.59 | % | | | 10.14 | % | | | 10.22 | % | | | 10.28 | % |
| Loan and lease loss allowance to loans and leases | | | 2.44 | % | | | 2.43 | % | | | 2.03 | % | | | 1.54 | % | | | 1.38 | % | | | 1.18 | % |
| Nonperforming assets to total assets | | | 4.05 | % | | | 3.57 | % | | | 2.18 | % | | | 2.14 | % | | | 2.05 | % | | | 1.48 | % |
Annualized net charge-offs (recoveries) toaverage loans and leases | | | 1.97 | % | | | 0.22 | % | | | 0.88 | % | | | 0.28 | % | | | 0.11 | % | | | (0.02 | )% |
| Miscellaneous data: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net charge-offs (recoveries) | | $ | 12,095 | | | $ | 1,341 | | | $ | 5,531 | | | $ | 1,714 | | | $ | 641 | | | $ | (129 | ) |
| Nonperforming assets: | | | | | | | | | | | | | | | | | | | | | | | | |
| Non-accrual loans and leases | | | 123,117 | | | | 110,761 | | | | 67,950 | | | | 64,246 | | | | 60,373 | | | | 37,353 | |
| Loans and leases 90 days past due | | | 16,004 | | | | 9,545 | | | | 1,038 | | | | 2,074 | | | | 2,538 | | | | 8,244 | |
| Restructured loans and leases | | | 395 | | | | 395 | | | | 395 | | | | 395 | | | | 655 | | | | 655 | |
| Other real estate owned, net | | | 6,829 | | | | 5,094 | | | | 2,860 | | | | 1,698 | | | | 1,352 | | | | 661 | |
| Total nonperforming assets | | | 146,345 | | | | 125,795 | | | | 72,243 | | | | 68,413 | | | | 64,918 | | | | 46,913 | |
Sandy Spring Bancorp, Inc. and Subsidiaries
CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES (Unaudited)
(Dollars in thousands and tax-equivalent)
| | | Three Months Ended June 30, | |
| | | 2009 | | 2008 | |
| | | | | | | | Annualized | | | | | | | | Annualized | |
| | | Average | | | | | Average | | Average | | | | | | Average | |
| | | Balances | | | Interest | | Yield/Rate | | Balances | | | Interest | | | Yield/Rate | |
| Assets | | | | | | | | | | | | | | | | |
| Residential mortgage loans | | $ | 477,955 | | | $ | 7,040 | | 5.89 | % | $ | 470,144 | | | $ | 7,127 | | | | 6.06 | % |
| Residential construction loans | | | 150,914 | | | | 1,878 | | 4.99 | | | 193,822 | | | | 2,826 | | | | 5.86 | |
| Commercial mortgage loans | | | 862,658 | | | | 13,224 | | 6.15 | | | 733,905 | | | | 12,421 | | | | 6.81 | |
| Commercial construction loans | | | 216,897 | | | | 1,561 | | 2.89 | | | 261,360 | | | | 3,455 | | | | 5.32 | |
| Commercial loans and leases | | | 341,039 | | | | 4,593 | | 5.40 | | | 359,287 | | | | 6,000 | | | | 6.71 | |
| Consumer loans | | | 408,200 | | | | 4,023 | | 3.95 | | | 380,911 | | | | 4,989 | | | | 5.27 | |
| Total loans and leases | | | 2,457,663 | | | | 32,319 | | 5.27 | | | 2,399,429 | | | | 36,818 | | | | 6.16 | |
| Securities | | | 772,878 | | | | 7,428 | | 3.87 | | | 431,182 | | | | 5,913 | | | | 5.55 | |
| Interest-bearing deposits with banks | | | 66,533 | | | | 43 | | 0.26 | | | 4,128 | | | | 24 | | | | 2.33 | |
| Federal funds sold | | | 1,849 | | | | 1 | | 0.18 | | | 27,273 | | | | 151 | | | | 2.23 | |
| TOTAL EARNING ASSETS | | | 3,298,923 | | | | 39,791 | | 4.84 | % | | 2,862,012 | | | | 42,906 | | | | 6.03 | % |
| | | | | | | | | | | | | | | | | | | | | | |
| Less: allowance for loan and lease losses | | | (60,859 | ) | | | | | | | | (28,450 | ) | | | | | | | | |
| Cash and due from banks | | | 44,015 | | | | | | | | | 48,929 | | | | | | | | | |
| Premises and equipment, net | | | 50,910 | | | | | | | | | 53,476 | | | | | | | | | |
| Other assets | | | 216,196 | | | | | | | | | 198,473 | | | | | | | | | |
| Total assets | | $ | 3,549,185 | | | | | | | | $ | 3,134,440 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| Liabilities and Stockholders' Equity | | | | | | | | | | | | | | | | | | | | | |
| Interest-bearing demand deposits | | $ | 254,392 | | | $ | 106 | | 0.17 | % | $ | 251,190 | | | $ | 180 | | | | 0.29 | % |
| Regular savings deposits | | | 154,314 | | | | 66 | | 0.17 | | | 159,888 | | | | 127 | | | | 0.32 | |
| Money market savings deposits | | | 813,972 | | | | 3,406 | | 1.68 | | | 684,663 | | | | 2,683 | | | | 1.58 | |
| Time deposits | | | 831,446 | | | | 6,342 | | 3.06 | | | 769,796 | | | | 7,593 | | | | 3.97 | |
| Total interest-bearing deposits | | | 2,054,124 | | | | 9,920 | | 1.94 | | | 1,865,537 | | | | 10,583 | | | | 2.28 | |
| Borrowings | | | 541,179 | | | | 4,300 | | 3.19 | | | 478,729 | | | | 4,143 | | | | 3.48 | |
| TOTAL INTEREST-BEARING LIABILITIES | | | 2,595,303 | | | | 14,220 | | 2.20 | | | 2,344,266 | | | | 14,726 | | | | 2.53 | |
| | | | | | | | | | | | | | | | | | | | | | |
| Noninterest-bearing demand deposits | | | 527,713 | | | | | | | | | 441,330 | | | | | | | | | |
| Other liabilities | | | 32,968 | | | | | | | | | 28,435 | | | | | | | | | |
| Stockholder's equity | | | 393,201 | | | | | | | | | 320,409 | | | | | | | | | |
| Total liabilities and stockholders' equity | | $ | 3,549,185 | | | | | | | | $ | 3,134,440 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| Net interest income and spread | | | | | | | 25,571 | | 2.64 | % | | | | | | 28,180 | | | | 3.50 | % |
| Less: tax equivalent adjustment | | | | | | | 1,123 | | | | | | | | | 1,061 | | | | | |
| Net interest income | | | | | | | 24,448 | | | | | | | | | 27,119 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| Interest income/earning assets | | | | | | | | | 4.84 | % | | | | | | | | | | 6.03 | % |
| Interest expense/earning assets | | | | | | | | | 1.73 | | | | | | | | | | | 2.07 | |
| Net interest margin | | | | | | | | | 3.11 | % | | | | | | | | | | 3.96 | % |
| * | Interest income includes the effects of annualized taxable-equivalent adjustments (reduced by the nondeductible portion ofinterest expense) using the appropriate marginal federal income tax rate of 35.00% and, where applicable, the marginal state income tax rate of 7.50% (or a combined marginal federal and state rate of 39.88%) for 2009 and 2008, to increase tax-exempt interest income to a taxable-equivalent basis. The annualized taxable-equivalent adjustments utilized in the above table to compute yields aggregated to $4,524,000 in 2009 and $4,267,000 in 2008. |
Sandy Spring Bancorp, Inc. and Subsidiaries
CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES (Unaudited)
(Dollars in thousands and tax-equivalent)
| | | Six Months Ended June 30, | |
| | | 2009 | | | 2008 | |
| | | | | | | | | Annualized | | | | | | | | | Annualized | |
| | | Average | | | | | | Average | | | Average | | | | | | Average | |
| | | Balances | | | Interest | | | Yield/Rate | | | Balances | | | Interest | | | Yield/Rate | |
| Assets | | | | | | | | | | | | | | | | | | |
| Residential mortgage loans | | $ | 479,828 | | | $ | 14,225 | | | | 5.93 | % | | $ | 466,870 | | | $ | 14,422 | | | | 6.18 | % |
| Residential construction loans | | | 163,791 | | | | 4,250 | | | | 5.23 | | | | 184,224 | | | | 5,596 | | | | 6.11 | |
| Commercial mortgage loans | | | 858,553 | | | | 26,490 | | | | 6.22 | | | | 712,097 | | | | 24,269 | | | | 6.85 | |
| Commercial construction loans | | | 220,542 | | | | 3,382 | | | | 3.09 | | | | 263,729 | | | | 7,881 | | | | 6.01 | |
| Commercial loans and leases | | | 350,377 | | | | 9,438 | | | | 5.43 | | | | 355,575 | | | | 12,546 | | | | 7.09 | |
| Consumer loans | | | 408,520 | | | | 8,047 | | | | 3.97 | | | | 379,586 | | | | 10,669 | | | | 5.65 | |
| Total loans and leases | | | 2,481,611 | | | | 65,832 | | | | 5.34 | | | | 2,362,081 | | | | 75,383 | | | | 6.41 | |
| Securities | | | 655,581 | | | | 13,604 | | | | 4.22 | | | | 429,500 | | | | 12,082 | | | | 5.70 | |
| Interest-bearing deposits with banks | | | 69,038 | | | | 89 | | | | 0.26 | | | | 5,538 | | | | 73 | | | | 2.63 | |
| Federal funds sold | | | 2,527 | | | | 3 | | | | 0.22 | | | | 31,613 | | | | 430 | | | | 2.74 | |
| TOTAL EARNING ASSETS | | | 3,208,757 | | | | 79,528 | | | | 5.00 | % | | | 2,828,732 | | | | 87,968 | | | | 6.25 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Less: allowance for loan and lease losses | | | (57,158 | ) | | | | | | | | | | | (27,147 | ) | | | | | | | | |
| Cash and due from banks | | | 45,511 | | | | | | | | | | | | 49,545 | | | | | | | | | |
| Premises and equipment, net | | | 51,158 | | | | | | | | | | | | 53,920 | | | | | | | | | |
| Other assets | | | 214,663 | | | | | | | | | | | | 198,384 | | | | | | | | | |
| Total assets | | $ | 3,462,931 | | | | | | | | | | | $ | 3,103,434 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Liabilities and Stockholders' Equity | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest-bearing demand deposits | | $ | 248,627 | | | $ | 227 | | | | 0.18 | % | | $ | 246,184 | | | $ | 351 | | | | 0.29 | % |
| Regular savings deposits | | | 150,945 | | | | 121 | | | | 0.16 | | | | 156,626 | | | | 247 | | | | 0.32 | |
| Money market savings deposits | | | 763,912 | | | | 5,822 | | | | 1.54 | | | | 696,836 | | | | 7,350 | | | | 2.12 | |
| Time deposits | | | 841,407 | | | | 13,205 | | | | 3.16 | | | | 757,356 | | | | 15,657 | | | | 4.16 | |
| Total interest-bearing deposits | | | 2,004,891 | | | | 19,375 | | | | 1.95 | | | | 1,857,002 | | | | 23,605 | | | | 2.56 | |
| Borrowings | | | 528,983 | | | | 8,548 | | | | 3.26 | | | | 470,945 | | | | 8,464 | | | | 3.61 | |
| TOTAL INTEREST-BEARING LIABILITIES | | | 2,533,874 | | | | 27,923 | | | | 2.22 | | | | 2,327,947 | | | | 32,069 | | | | 2.77 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Noninterest-bearing demand deposits | | | 502,179 | | | | | | | | | | | | 426,850 | | | | | | | | | |
| Other liabilities | | | 34,436 | | | | | | | | | | | | 30,555 | | | | | | | | | |
| Stockholder's equity | | | 392,442 | | | | | | | | | | | | 318,082 | | | | | | | | | |
| Total liabilities and stockholders' equity | | $ | 3,462,931 | | | | | | | | | | | $ | 3,103,434 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net interest income and spread | | | | | | | 51,605 | | | | 2.78 | % | | | | | | | 55,899 | | | | 3.48 | % |
| Less: tax equivalent adjustment | | | | | | | 2,132 | | | | | | | | | | | | 2,201 | | | | | |
| Net interest income | | | | | | | 49,473 | | | | | | | | | | | | 53,698 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest income/earning assets | | | | | | | | | | | 5.00 | % | | | | | | | | | | | 6.25 | % |
| Interest expense/earning assets | | | | | | | | | | | 1.76 | | | | | | | | | | | | 2.28 | |
| Net interest margin | | | | | | | | | | | 3.24 | % | | | | | | | | | | | 3.97 | % |
| * | Interest income includes the effects of annualized taxable-equivalent adjustments (reduced by the nondeductible portion ofinterest expense) using the appropriate marginal federal income tax rate of 35.00% and, where applicable, the marginal state income tax rate of 7.50% (or a combined marginal federal and state rate of 39.88%) for 2009 and 2008, to increase tax-exempt interest income to a taxable-equivalent basis. The annualized taxable-equivalent adjustments utilized in the above table to compute yields aggregated to $4,299,000 in 2009 and $4,431,000 in 2008. |
