Exhibit 99.1
|
News release |
FOR IMMEDIATE RELEASE
SANDY SPRING BANCORP REPORTS NET INCOME OF $11.1 MILLION FOR THE THIRD QUARTER
OLNEY, MARYLAND, October 16, 2014 — Sandy Spring Bancorp, Inc., (Nasdaq-SASR) the parent company of Sandy Spring Bank, today reported net income for the third quarter of 2014 of $11.1 million ($0.44 per diluted share) compared to net income of $12.1 million ($0.48 per diluted share) for the third quarter of 2013 and net income of $7.0 million ($0.28 per diluted share) for the second quarter of 2014.
Net income for the nine months ended September 30, 2014 was $29.1 million ($1.16 per diluted share) compared to net income of $34.8 million ($1.39 per diluted share) for the same period of the prior year.
“The Company continued to produce balanced growth across the loan portfolio. The impact of this continued loan growth and the resulting increase in interest income, in addition to solid performances from our wealth management and insurance businesses provides a solid core of earnings growth as we look to the future,” said Daniel J. Schrider, President and Chief Executive Officer.
“We believe that pursuing promising lending opportunities and providing outstanding client service in this competitive market will result in meeting our performance objectives.” said Schrider.
Third Quarter Highlights:
| · | Total loans increased 12% compared to the third quarter of 2013 and 2% compared to the second quarter of 2014. Growth over the prior year exceeded 10% in most segments of the loan portfolio. Overall the entire portfolio grew $314 million from the prior year with residential mortgage loans comprising 33% of that growth. |
| · | Combined noninterest-bearing and interest-bearing transactionaccount balances increased 11% to $1.5 billion at September 30, 2014 as compared to $1.3 billion at September 30, 2013. |
| · | The provision for loan and lease losses for the third quarter of 2014 was a credit of $0.2 million compared to a charge of $1.1 million for the third quarter of 2013 and $0.2 million for the second quarter of 2014. The credit quality of the loan portfolio continues to exhibit stability while outstanding loans continued to grow significantly over the prior year. |
| · | The net interest margin was 3.42% for the third quarter of 2014, compared to 3.88% for the third quarter of 2013 and 3.48% for the second quarter of 2014. The prior year’s margin was positively affected by loan recoveries on commercial loans. Exclusive of those recoveries, the net interest margin for the third quarter of 2013 would have been 3.49%. |
| · | Non-interest income increased 12% for the quarter compared to the prior year quarter due to significant increases in income from insurance and wealth management activities. These areas of non-interest income continue to be the focus in driving the growth of the Bank’s non-interest income. |
Review of Balance Sheet and Credit Quality
Total assets grew 5% to $4.2 billion at September 30, 2014 compared to $4.1 billion at September 30, 2013. This growth was driven by the $314 million or 12% increase in the loan portfolio as total loans and leases ended the period at $3.0 billion.
Deposits and certain other short-term borrowings that comprise all the funding sources derived from customers, increased 4% compared to September 30, 2013. At September 30, 2014, combined noninterest-bearing and interest-bearing checking account balances, an important performance driver of multiple-product banking relationships with clients, increased 11% compared to the balances at September 30, 2013.
Tangible common equity totaled $434 million at September 30, 2014 compared to $411 million at September 30, 2013, resulting in an increase in the ratio of tangible common equity to tangible assets to 10.42% at September 30, 2014 from 10.36% at September 30, 2013. Tangible common equity increased compared to the prior year while dividends per common share were raised to $0.56 per share for the first nine months of 2014 from $0.46 per common share for the first nine months of 2013, a 22% increase. During the quarter dividends were raised $0.02 per share to $0.20 per common share, for an annualized payout of $0.80 per share. At September 30, 2014, the Company had a total risk-based capital ratio of 15.68%, a tier 1 risk-based capital ratio of 14.52% and a tier 1 leverage ratio of 11.36%.
Non-performing loans totaled $43.7 million at September 30, 2014 compared to $38.3 million at September 30, 2013 and $41.7 million at June 30, 2014. The level of non-performing loans to total loans increased to 1.47% at September 30, 2014 compared to 1.44% at September 30, 2013. The increase from the prior year’s level of non-performing loans was primarily due an increase in the owner occupied segment of the commercial loans. The increase from the prior year is attributable to several relationships, only one of which exceeded $2.0 million.
Loan charge-offs, net of recoveries, totaled $0.2 million for the third quarter of 2014 compared to net loan charge-offs of $0.7 million for the third quarter of 2013 and net loan charge-offs of $0.2 million for the second quarter of 2014. The allowance for loan and lease losses represented 1.26% of outstanding loans and leases and 86% of non-performing loans at September 30, 2014 compared to 1.48% of outstanding loans and leases and 103% of non-performing loans at September 30, 2013. Non-performing loans includes accruing loans 90 days or more past due and restructured loans.
Income Statement Review
Net interest income for the third quarter of 2014 decreased 8% compared to the third quarter of 2013. The prior year’s net interest income included $3.7 million in loan interest recoveries on previously non-performing commercial loans. Excluding the recoveries, net interest income grew 2% from the prior year. The net interest margin was 3.42% for the third quarter of 2014 compared to 3.88% for the third quarter of 2013. The net interest margin for the third quarter of 2013 would have been 3.49% exclusive of the above recoveries.
The provision for loan and lease losses was a credit of $0.2 million for the third quarter of 2014 compared to a charge of $1.1 million for the third quarter of 2013 and a charge of $0.2 million for the second quarter of 2014. The current quarter’s credit reflects the stability in the credit quality of the loan portfolio while outstanding loans continued to grow over the prior year. Reduced charge-offs and the relative stability of problem loan migration into non-performing status more than offset the effect of the growth in the loan portfolio duringthe past twelve months.
Non-interest income increased 12% to $12.6 million for the third quarter of 2014 compared to $11.2 million for the third quarter of 2013. The increase in non-interest income for the quarter compared to the prior year quarter was due to significant increases in income from mortgage banking, insurance and wealth management activities.
Non-interest expenses increased 6% to $28.6 million for the third quarter of 2014 compared to $26.9 million in the third quarter of 2013. The current quarter included increases for salaries of $0.4 million, $0.4 million accrued for potential exposures on performance letters of credit and litigation expenses of $0.2 million. Last year’s quarter included reductions of $0.5 million in professional fees. The non-GAAP efficiency ratio was 61.09% for the third quarter of 2014 compared to 55.21% for the third quarter of 2013. The prior year’s quarter was positively impacted by the impact of the interest income and expense recoveries associated with previously non-performing loans. Excluding the effect of these recoveries, the non-GAAP efficiency ratio for the third quarter of 2013 was 61.47%
Net interest income for the first nine months of 2014 decreased 1% compared to the first nine months of 2013. Excluding interest recoveries of $3.7 million in the prior year, net interest income would have increased 3%. The net interest margin decreased to 3.46% for the first nine months of 2014 compared to 3.66% for the first nine months of 2013. The prior year’s margin was positively impacted by loan recoveries on commercial loans. Exclusive of those recoveries the net interest margin for the third quarter of 2013 would have been 3.53%
The provision for loan and lease losses was a credit of $1.0 million for the first nine months of 2014 compared to a credit of $1.7 million for first nine months of 2013. These credits in the provision for the period have been driven by a decline in historical losses, an improvement in the overall credit quality of the loan portfolio and loan recoveries during these periods whose impact more than offset the effect of loan growth over the same period.
Non-interest income decreased 1% to $35.5 million for the first nine months of 2014 compared to $35.9 million for the first nine months of 2013. This decrease was driven primarily by the decrease in income from mortgage banking activities due to the decline in loan origination volumes. The impact of this decrease was partially mitigated by increases in wealth management income that increased 8% due to higher assets under management while insurance agency commissions increased 12%.
Non-interest expenses increased to $90.3 million for the first nine months of 2014 compared to $82.2 million in the first nine months of 2013 due to the impact of the litigation expenses. Excluding the impact of the litigation expenses related to an adverse jury verdict, non-interest expense for the nine months ended September 30, 2014 was $84.0 million. The non-GAAP efficiency ratio was 61.32% for the first nine months of 2014 compared to 61.01% for the first nine months of 2013 excluding the effect of the interest recoveries previously mentioned.
Conference Call
The Company’s management will host a conference call to discuss its third 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 1-888-235-9910. 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 9:00 am (ET) October 31, 2014. A replay of the teleconference will be available through the same time period by calling 1-877-344-7529 under conference call number 10053632.
About Sandy Spring Bancorp, Inc.
With $4.2 billion in assets, Sandy Spring Bancorp, Inc. is the holding company for Sandy Spring Bank and its principal subsidiaries, Sandy Spring Insurance Corporation 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 46 community offices in Anne Arundel, Carroll, Frederick, Howard, Montgomery, and Prince George’s counties in Maryland, and Arlington, Fairfax and Loudoun counties in Virginia. Through its subsidiaries, Sandy Spring Bank also offers a comprehensive menu of insurance and investment management services. Visit www.sandyspringbank.com 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, 2013, 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 | ||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
| September 30, | % | September 30, | % | |||||||||||||||||||||
| (Dollars in thousands, except per share data) | 2014 | 2013 | Change | 2014 | 2013 | Change | ||||||||||||||||||
| Results of Operations: | ||||||||||||||||||||||||
| Net interest income | $ | 32,420 | $ | 35,306 | (8 | )% | $ | 96,321 | $ | 97,564 | (1 | )% | ||||||||||||
| Provision for loan and lease losses | (192 | ) | 1,128 | (117 | ) | (1,016 | ) | (1,670 | ) | (39 | ) | |||||||||||||
| Non-interest income | 12,590 | 11,223 | 12 | 35,533 | 35,857 | (1 | ) | |||||||||||||||||
| Non-interest expenses | 28,632 | 26,893 | 6 | 90,322 | 82,224 | 10 | ||||||||||||||||||
| Income before income taxes | 16,570 | 18,508 | (10 | ) | 42,548 | 52,867 | (20 | ) | ||||||||||||||||
| Net income | 11,142 | 12,089 | (8 | ) | 29,052 | 34,809 | (17 | ) | ||||||||||||||||
| Pre-tax pre-provision income | $ | 16,614 | $ | 19,636 | (15 | ) | $ | 47,896 | $ | 51,197 | (6 | ) | ||||||||||||
| Return on average assets | 1.05 | % | 1.19 | % | 0.93 | % | 1.17 | % | ||||||||||||||||
| Return on average common equity | 8.54 | % | 9.91 | % | 7.60 | % | 9.59 | % | ||||||||||||||||
| Net interest margin | 3.42 | % | 3.88 | % | 3.46 | % | 3.66 | % | ||||||||||||||||
| Efficiency ratio - GAAP basis (1) | 63.61 | % | 57.80 | % | 68.50 | % | 61.63 | % | ||||||||||||||||
| Efficiency ratio - Non-GAAP basis (1) | 61.09 | % | 55.21 | % | 61.32 | % | 58.89 | % | ||||||||||||||||
| Per share data: | ||||||||||||||||||||||||
| Basic net income | $ | 0.44 | $ | 0.48 | (8 | )% | $ | 1.16 | $ | 1.40 | (17 | )% | ||||||||||||
| Diluted net income | $ | 0.44 | $ | 0.48 | (8 | ) | $ | 1.16 | $ | 1.39 | (17 | ) | ||||||||||||
| Average fully diluted shares | 25,151,582 | 25,070,506 | - | 25,135,078 | 25,049,181 | - | ||||||||||||||||||
| Dividends declared per share | $ | 0.20 | $ | 0.16 | 25 | $ | 0.56 | $ | 0.46 | 22 | ||||||||||||||
| Book value per share | 20.83 | 19.77 | 5 | 20.83 | 19.77 | 5 | ||||||||||||||||||
| Tangible book value per share | 17.31 | 16.44 | 5 | 17.31 | 16.44 | 5 | ||||||||||||||||||
| Outstanding shares | 25,076,794 | 24,985,146 | - | 25,076,794 | 24,985,146 | - | ||||||||||||||||||
| Financial Condition at period-end: | ||||||||||||||||||||||||
| Investment securities | $ | 950,869 | $ | 1,077,951 | (12 | )% | $ | 950,869 | $ | 1,077,951 | (12 | )% | ||||||||||||
| Loans and leases | 2,975,912 | 2,662,010 | 12 | 2,975,912 | 2,662,010 | 12 | ||||||||||||||||||
| Interest-earning assets | 3,976,731 | 3,771,825 | 5 | 3,976,731 | 3,771,825 | 5 | ||||||||||||||||||
| Assets | 4,248,731 | 4,052,969 | 5 | 4,248,731 | 4,052,969 | 5 | ||||||||||||||||||
| Deposits | 3,028,788 | 2,916,466 | 4 | 3,028,788 | 2,916,466 | 4 | ||||||||||||||||||
| Interest-bearing liabilities | 2,706,623 | 2,634,324 | 3 | 2,706,623 | 2,634,324 | 3 | ||||||||||||||||||
| Stockholders' equity | 522,404 | 493,882 | 6 | 522,404 | 493,882 | 6 | ||||||||||||||||||
| Capital ratios: | ||||||||||||||||||||||||
| Tier 1 leverage (4) | 11.36 | % | 11.29 | % | 11.36 | % | 11.29 | % | ||||||||||||||||
| Tier 1 capital to risk-weighted assets (4) | 14.52 | % | 14.45 | % | 14.52 | % | 14.45 | % | ||||||||||||||||
| Total regulatory capital to risk-weighted assets (4) | 15.68 | % | 15.70 | % | 15.68 | % | 15.70 | % | ||||||||||||||||
| Tangible common equity to tangible assets (2) | 10.42 | % | 10.36 | % | 10.42 | % | 10.36 | % | ||||||||||||||||
| Average equity to average assets | 12.26 | % | 11.98 | % | 12.28 | % | 12.19 | % | ||||||||||||||||
| Credit quality ratios: | ||||||||||||||||||||||||
| Allowance for loan and lease losses to loans and leases | 1.26 | % | 1.48 | % | 1.26 | % | 1.48 | % | ||||||||||||||||
| Non-performing loans to total loans | 1.47 | % | 1.44 | % | 1.47 | % | 1.44 | % | ||||||||||||||||
| Non-performing assets to total assets | 1.07 | % | 0.98 | % | 1.07 | % | 0.98 | % | ||||||||||||||||
| Allowance for loan and lease losses to non-performing loans | 86.03 | % | 103.06 | % | 86.03 | % | 103.06 | % | ||||||||||||||||
| Annualized net charge-offs to average loans and leases (3) | 0.03 | % | 0.11 | % | 0.01 | % | 0.10 | % | ||||||||||||||||
| (1) | The efficiency ratio - GAAP basis is non-interest expenses divided by net interest income plus non-interest income from the Condensed Consolidated Statements of Income. The traditional efficiency ratio - non-GAAP basis excludes intangible asset amortization from non-interest expense; securities gains (losses) from non-interest income; OTTI; and the tax-equivalent adjustment to net interest income. See the Reconciliation Table included with these Financial Highlights. |
| (2) | The tangible common equity to tangible assets ratio is a non-GAAP ratio that divides assets excluding intangible assets into stockholders' equity after deducting intangible assets and other comprehensive gains (losses). See the Reconciliation Table included with these Financial Highlights. |
| (3) | Calculation utilizes average loans and leases, excluding residential mortgage loans held-for-sale. |
| (4) | Estimated ratio at September 30, 2014 |
| Sandy Spring Bancorp, Inc. and Subsidiaries | ||||||||||||||||
| RECONCILIATION TABLE - UNAUDITED | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| (Dollars in thousands) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
| Pre-tax pre-provision income: | ||||||||||||||||
| Net income | $ | 11,142 | $ | 12,089 | $ | 29,052 | $ | 34,809 | ||||||||
| Plus non-GAAP adjustment: | ||||||||||||||||
| Litigation expenses | 236 | - | 6,364 | - | ||||||||||||
| Income taxes | 5,428 | 6,419 | 13,496 | 18,058 | ||||||||||||
| Provision (credit) for loan and lease losses | (192 | ) | 1,128 | (1,016 | ) | (1,670 | ) | |||||||||
| Pre-tax pre-provision income | $ | 16,614 | $ | 19,636 | $ | 47,896 | $ | 51,197 | ||||||||
| Efficiency ratio - GAAP basis: | ||||||||||||||||
| Non-interest expenses | $ | 28,632 | $ | 26,893 | $ | 90,322 | $ | 82,224 | ||||||||
| Net interest income plus non-interest income | $ | 45,010 | $ | 46,529 | $ | 131,854 | $ | 133,421 | ||||||||
| Efficiency ratio - GAAP basis | 63.61 | % | 57.80 | % | 68.50 | % | 61.63 | % | ||||||||
| Efficiency ratio - Non-GAAP basis: | ||||||||||||||||
| Non-interest expenses | $ | 28,632 | $ | 26,893 | $ | 90,322 | $ | 82,224 | ||||||||
| Less non-GAAP adjustment: | ||||||||||||||||
| Amortization of intangible assets | 115 | 462 | 709 | 1,384 | ||||||||||||
| Litigation expenses | 236 | - | 6,364 | - | ||||||||||||
| Non-interest expenses - as adjusted | $ | 28,281 | $ | 26,431 | $ | 83,249 | $ | 80,840 | ||||||||
| Net interest income plus non-interest income | $ | 45,010 | $ | 46,529 | $ | 131,854 | $ | 133,421 | ||||||||
| Plus non-GAAP adjustment: | ||||||||||||||||
| Tax-equivalent income | 1,296 | 1,344 | 3,909 | 3,967 | ||||||||||||
| Less non-GAAP adjustments: | ||||||||||||||||
| Securities gains | 8 | - | 8 | 118 | ||||||||||||
| OTTI recognized in earnings | - | - | - | - | ||||||||||||
| Net interest income plus non-interest income - as adjusted | $ | 46,298 | $ | 47,873 | $ | 135,755 | $ | 137,270 | ||||||||
| Efficiency ratio - Non-GAAP basis | 61.09 | % | 55.21 | % | 61.32 | % | 58.89 | % | ||||||||
| Tangible common equity ratio: | ||||||||||||||||
| Total stockholders' equity | $ | 522,404 | $ | 493,882 | $ | 522,404 | $ | 493,882 | ||||||||
| Accumulated other comprehensive (income) loss | (3,632 | ) | 2,892 | (3,632 | ) | 2,892 | ||||||||||
| Goodwill | (84,171 | ) | (84,171 | ) | (84,171 | ) | (84,171 | ) | ||||||||
| Other intangible assets, net | (622 | ) | (1,792 | ) | (622 | ) | (1,792 | ) | ||||||||
| Tangible common equity | $ | 433,979 | $ | 410,811 | $ | 433,979 | $ | 410,811 | ||||||||
| Total assets | $ | 4,248,731 | $ | 4,052,969 | $ | 4,248,731 | $ | 4,052,969 | ||||||||
| Goodwill | (84,171 | ) | (84,171 | ) | (84,171 | ) | (84,171 | ) | ||||||||
| Other intangible assets, net | (622 | ) | (1,792 | ) | (622 | ) | (1,792 | ) | ||||||||
| Tangible assets | $ | 4,163,938 | $ | 3,967,006 | $ | 4,163,938 | $ | 3,967,006 | ||||||||
| Tangible common equity ratio | 10.42 | % | 10.36 | % | 10.42 | % | 10.36 | % | ||||||||
| Outstanding common shares | 25,076,794 | 24,985,146 | 25,076,794 | 24,985,146 | ||||||||||||
| Tangible book value per common share | $ | 17.31 | $ | 16.44 | $ | 17.31 | $ | 16.44 | ||||||||
Sandy Spring Bancorp, Inc. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF CONDITION - UNAUDITED
| September 30, | December 31, | September 30, | ||||||||||
| (Dollars in thousands) | 2014 | 2013 | 2013 | |||||||||
| Assets | ||||||||||||
| Cash and due from banks | $ | 48,665 | $ | 46,755 | $ | 58,746 | ||||||
| Federal funds sold | 474 | 475 | 475 | |||||||||
| Interest-bearing deposits with banks | 42,820 | 27,197 | 20,847 | |||||||||
| Cash and cash equivalents | 91,959 | 74,427 | 80,068 | |||||||||
| Residential mortgage loans held for sale (at fair value) | 6,656 | 8,365 | 10,542 | |||||||||
| Investments available-for-sale (at fair value) | 692,107 | 751,284 | 815,545 | |||||||||
| Investments held-to-maturity -- fair value of $223,130, $216,007 and $220,054 at September 30, 2014, December 31, 2013 and September 30, 2013, respectively | 221,690 | 224,638 | 225,994 | |||||||||
| Other equity securities | 37,072 | 40,687 | 36,412 | |||||||||
| Total loans and leases | 2,975,912 | 2,784,266 | 2,662,010 | |||||||||
| Less: allowance for loan and lease losses | (37,574 | ) | (38,766 | ) | (39,422 | ) | ||||||
| Net loans and leases | 2,938,338 | 2,745,500 | 2,622,588 | |||||||||
| Premises and equipment, net | 45,841 | 45,916 | 46,655 | |||||||||
| Other real estate owned | 1,762 | 1,338 | 1,662 | |||||||||
| Accrued interest receivable | 12,277 | 12,532 | 12,464 | |||||||||
| Goodwill | 84,171 | 84,171 | 84,171 | |||||||||
| Other intangible assets, net | 622 | 1,330 | 1,792 | |||||||||
| Other assets | 116,236 | 115,912 | 115,076 | |||||||||
| Total assets | $ | 4,248,731 | $ | 4,106,100 | $ | 4,052,969 | ||||||
| Liabilities | ||||||||||||
| Noninterest-bearing deposits | $ | 986,549 | $ | 836,198 | $ | 890,319 | ||||||
| Interest-bearing deposits | 2,042,239 | 2,041,027 | 2,026,147 | |||||||||
| Total deposits | 3,028,788 | 2,877,225 | 2,916,466 | |||||||||
| Securities sold under retail repurchase agreements and federal funds purchased | 71,384 | 53,842 | 53,177 | |||||||||
| Advances from FHLB | 558,000 | 615,000 | 520,000 | |||||||||
| Subordinated debentures | 35,000 | 35,000 | 35,000 | |||||||||
| Accrued interest payable and other liabilities | 33,155 | 25,670 | 34,444 | |||||||||
| Total liabilities | 3,726,327 | 3,606,737 | 3,559,087 | |||||||||
| Stockholders' Equity | ||||||||||||
| Common stock -- par value $1.00; shares authorized 50,000,000; shares issued and outstanding 25,076,794 24,990,021 and 24,985,146 at September 30, 2014, December 31, 2013 and September 30, 2013, respectively | 25,077 | 24,990 | 24,985 | |||||||||
| Additional paid in capital | 194,899 | 193,445 | 192,964 | |||||||||
| Retained earnings | 298,796 | 283,898 | 278,825 | |||||||||
| Accumulated other comprehensive income (loss) | 3,632 | (2,970 | ) | (2,892 | ) | |||||||
| Total stockholders' equity | 522,404 | 499,363 | 493,882 | |||||||||
| Total liabilities and stockholders' equity | $ | 4,248,731 | $ | 4,106,100 | $ | 4,052,969 | ||||||
Sandy Spring Bancorp, Inc. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| (Dollars in thousands, except per share data) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
| Interest Income: | ||||||||||||||||
| Interest and fees on loans and leases | $ | 31,030 | $ | 33,079 | $ | 91,470 | $ | 91,937 | ||||||||
| Interest on loans held for sale | 81 | 176 | 211 | 838 | ||||||||||||
| Interest on deposits with banks | 24 | 22 | 66 | 65 | ||||||||||||
| Interest and dividends on investment securities: | ||||||||||||||||
| Taxable | 3,712 | 4,558 | 11,704 | 12,411 | ||||||||||||
| Exempt from federal income taxes | 2,303 | 2,345 | 6,940 | 6,987 | ||||||||||||
| Total interest income | 37,150 | 40,180 | 110,391 | 112,238 | ||||||||||||
| Interest Expense: | ||||||||||||||||
| Interest on deposits | 1,208 | 1,358 | 3,585 | 4,209 | ||||||||||||
| Interest on retail repurchase agreements and federal funds purchased | 42 | 39 | 117 | 126 | ||||||||||||
| Interest on advances from FHLB | 3,258 | 3,255 | 9,709 | 9,667 | ||||||||||||
| Interest on subordinated debt | 222 | 222 | 659 | 672 | ||||||||||||
| Total interest expense | 4,730 | 4,874 | 14,070 | 14,674 | ||||||||||||
| Net interest income | 32,420 | 35,306 | 96,321 | 97,564 | ||||||||||||
| Provision (credit) for loan and lease losses | (192 | ) | 1,128 | (1,016 | ) | (1,670 | ) | |||||||||
| Net interest income after provision (credit) for loan and lease losses | 32,612 | 34,178 | 97,337 | 99,234 | ||||||||||||
| Non-interest Income: | ||||||||||||||||
| Investment securities gains | 8 | - | 8 | 118 | ||||||||||||
| Service charges on deposit accounts | 2,226 | 2,171 | 6,287 | 6,390 | ||||||||||||
| Mortgage banking activities | 596 | (26 | ) | 1,482 | 2,738 | |||||||||||
| Wealth management income | 4,974 | 4,503 | 14,181 | 13,077 | ||||||||||||
| Insurance agency commissions | 1,410 | 1,193 | 4,011 | 3,578 | ||||||||||||
| Income from bank owned life insurance | 611 | 629 | 1,817 | 1,864 | ||||||||||||
| Bank card fees | 1,148 | 1,077 | 3,295 | 3,113 | ||||||||||||
| Other income | 1,617 | 1,676 | 4,452 | 4,979 | ||||||||||||
| Total non-interest income | 12,590 | 11,223 | 35,533 | 35,857 | ||||||||||||
| Non-interest Expenses: | ||||||||||||||||
| Salaries and employee benefits | 16,765 | 16,382 | 49,594 | 48,891 | ||||||||||||
| Occupancy expense of premises | 3,032 | 3,149 | 9,778 | 9,327 | ||||||||||||
| Equipment expenses | 1,337 | 1,200 | 3,855 | 3,676 | ||||||||||||
| Marketing | 744 | 713 | 2,088 | 1,983 | ||||||||||||
| Outside data services | 1,231 | 1,152 | 3,663 | 3,418 | ||||||||||||
| FDIC insurance | 594 | 678 | 1,687 | 1,855 | ||||||||||||
| Amortization of intangible assets | 115 | 462 | 709 | 1,384 | ||||||||||||
| Litigation expenses | 236 | - | 6,364 | - | ||||||||||||
| Other expenses | 4,578 | 3,157 | 12,584 | 11,690 | ||||||||||||
| Total non-interest expenses | 28,632 | 26,893 | 90,322 | 82,224 | ||||||||||||
| Income before income taxes | 16,570 | 18,508 | 42,548 | 52,867 | ||||||||||||
| Income tax expense | 5,428 | 6,419 | 13,496 | 18,058 | ||||||||||||
| Net income | $ | 11,142 | $ | 12,089 | $ | 29,052 | $ | 34,809 | ||||||||
| Net Income Per Share Amounts: | ||||||||||||||||
| Basic net income per share | $ | 0.44 | $ | 0.48 | $ | 1.16 | $ | 1.40 | ||||||||
| Diluted net income per share | $ | 0.44 | $ | 0.48 | $ | 1.16 | $ | 1.39 | ||||||||
| Dividends declared per share | $ | 0.20 | $ | 0.16 | $ | 0.56 | $ | 0.46 | ||||||||
| Sandy Spring Bancorp, Inc. and Subsidiaries | ||||||||||||||||||||||||||||
| HISTORICAL TRENDS - QUARTERLY FINANCIAL DATA - UNAUDITED | ||||||||||||||||||||||||||||
| 2013 | ||||||||||||||||||||||||||||
| (Dollars in thousands, except per share data) | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||
| Profitability for the quarter: | ||||||||||||||||||||||||||||
| Tax-equivalent interest income | $ | 38,446 | $ | 38,322 | $ | 37,532 | $ | 38,434 | $ | 41,524 | $ | 37,091 | $ | 37,590 | ||||||||||||||
| Interest expense | 4,730 | 4,682 | 4,658 | 4,759 | 4,874 | 4,847 | 4,953 | |||||||||||||||||||||
| Tax-equivalent net interest income | 33,716 | 33,640 | 32,874 | 33,675 | 36,650 | 32,244 | 32,637 | |||||||||||||||||||||
| Tax-equivalent adjustment | 1,296 | 1,331 | 1,282 | 1,325 | 1,344 | 1,312 | 1,311 | |||||||||||||||||||||
| Provision for loan and lease losses | (192 | ) | 158 | (982 | ) | 586 | 1,128 | (2,876 | ) | 78 | ||||||||||||||||||
| Non-interest income | 12,590 | 11,694 | 11,249 | 11,654 | 11,223 | 12,215 | 12,419 | |||||||||||||||||||||
| Non-interest expenses | 28,632 | 34,141 | 27,549 | 29,300 | 26,893 | 27,508 | 27,823 | |||||||||||||||||||||
| Income before income taxes | 16,570 | 9,704 | 16,274 | 14,118 | 18,508 | 18,515 | 15,844 | |||||||||||||||||||||
| Income tax expense | 5,428 | 2,722 | 5,346 | 4,505 | 6,419 | 6,353 | 5,286 | |||||||||||||||||||||
| Net income | $ | 11,142 | $ | 6,982 | $ | 10,928 | $ | 9,613 | $ | 12,089 | $ | 12,162 | $ | 10,558 | ||||||||||||||
| Financial performance: | ||||||||||||||||||||||||||||
| Pre-tax pre-provision income | $ | 16,614 | $ | 15,990 | $ | 15,292 | $ | 14,704 | $ | 19,636 | $ | 15,639 | $ | 15,922 | ||||||||||||||
| Return on average assets | 1.05 | % | 0.67 | % | 1.08 | % | 0.93 | % | 1.19 | % | 1.23 | % | 1.08 | % | ||||||||||||||
| Return on average common equity | 8.54 | % | 5.47 | % | 8.80 | % | 7.71 | % | 9.91 | % | 9.98 | % | 8.85 | % | ||||||||||||||
| Net interest margin | 3.42 | % | 3.48 | % | 3.47 | % | 3.53 | % | 3.88 | % | 3.51 | % | 3.59 | % | ||||||||||||||
| Efficiency ratio - GAAP basis(1) | 63.61 | % | 77.59 | % | 64.31 | % | 66.59 | % | 57.80 | % | 63.75 | % | 63.60 | % | ||||||||||||||
| Efficiency ratio - Non-GAAP basis(1) | 61.09 | % | 61.30 | % | 61.60 | % | 63.62 | % | 55.21 | % | 60.92 | % | 60.80 | % | ||||||||||||||
| Per share data: | ||||||||||||||||||||||||||||
| Basic net income per share | $ | 0.44 | $ | 0.28 | $ | 0.44 | $ | 0.38 | $ | 0.48 | $ | 0.49 | $ | 0.42 | ||||||||||||||
| Diluted net income per share | $ | 0.44 | $ | 0.28 | $ | 0.43 | $ | 0.38 | $ | 0.48 | $ | 0.49 | $ | 0.42 | ||||||||||||||
| Average fully diluted shares | 25,151,582 | 25,127,036 | 25,124,206 | 25,108,109 | 25,070,506 | 25,009,092 | 25,002,612 | |||||||||||||||||||||
| Dividends declared per common share | $ | 0.20 | $ | 0.18 | $ | 0.18 | $ | 0.18 | $ | 0.16 | $ | 0.16 | $ | 0.14 | ||||||||||||||
| Non-interest income: | ||||||||||||||||||||||||||||
| Securities gains (losses) | $ | 8 | $ | - | $ | - | $ | (3 | ) | $ | - | $ | 62 | $ | 56 | |||||||||||||
| Service charges on deposit accounts | 2,226 | 2,089 | 1,972 | 2,143 | 2,171 | 2,150 | 2,069 | |||||||||||||||||||||
| Mortgage banking activities | 596 | 570 | 316 | 356 | (26 | ) | 1,237 | 1,527 | ||||||||||||||||||||
| Wealth management income | 4,974 | 4,741 | 4,466 | 4,508 | 4,503 | 4,532 | 4,042 | |||||||||||||||||||||
| Insurance agency commissions | 1,410 | 961 | 1,640 | 1,243 | 1,193 | 1,036 | 1,349 | |||||||||||||||||||||
| Income from bank owned life insurance | 611 | 608 | 598 | 635 | 629 | 623 | 612 | |||||||||||||||||||||
| Bank card fees | 1,148 | 1,169 | 978 | 1,052 | 1,077 | 1,079 | 957 | |||||||||||||||||||||
| Other income | 1,617 | 1,556 | 1,279 | 1,720 | 1,676 | 1,496 | 1,807 | |||||||||||||||||||||
| Total non-interest income | $ | 12,590 | $ | 11,694 | $ | 11,249 | $ | 11,654 | $ | 11,223 | $ | 12,215 | $ | 12,419 | ||||||||||||||
| Non-interest expense: | ||||||||||||||||||||||||||||
| Salaries and employee benefits | $ | 16,765 | $ | 16,474 | $ | 16,355 | $ | 16,707 | $ | 16,382 | $ | 16,163 | $ | 16,346 | ||||||||||||||
| Occupancy expense of premises | 3,032 | 3,274 | 3,472 | 3,844 | 3,149 | 2,996 | 3,182 | |||||||||||||||||||||
| Equipment expenses | 1,337 | 1,262 | 1,256 | 1,264 | 1,200 | 1,227 | 1,249 | |||||||||||||||||||||
| Marketing | 744 | 802 | 542 | 897 | 713 | 755 | 515 | |||||||||||||||||||||
| Outside data services | 1,231 | 1,216 | 1,216 | 1,162 | 1,152 | 1,114 | 1,152 | |||||||||||||||||||||
| FDIC insurance | 594 | 573 | 520 | 445 | 678 | 581 | 596 | |||||||||||||||||||||
| Amortization of intangible assets | 115 | 224 | 370 | 461 | 462 | 461 | 461 | |||||||||||||||||||||
| Litigation expenses | 236 | 6,128 | - | - | - | - | - | |||||||||||||||||||||
| Professional fees | 1,092 | 1,292 | 914 | 1,386 | 511 | 1,332 | 1,250 | |||||||||||||||||||||
| Other real estate owned expenses | 40 | 9 | - | 91 | (150 | ) | (281 | ) | 37 | |||||||||||||||||||
| Other expenses | 3,446 | 2,887 | 2,904 | 3,043 | 2,796 | 3,160 | 3,035 | |||||||||||||||||||||
| Total non-interest expense | $ | 28,632 | $ | 34,141 | $ | 27,549 | $ | 29,300 | $ | 26,893 | $ | 27,508 | $ | 27,823 | ||||||||||||||
| (1) | The efficiency ratio - GAAP basis is non-interest expenses divided by net interest income plus non-interest income from the Condensed Consolidated Statements of Income. The traditional, efficiency ratio - non-GAAP basis excludes intangible asset amortization from non-interest expense; excludes securities gains; OTTI losses from non-interest 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
HISTORICAL TRENDS - QUARTERLY FINANCIAL DATA - UNAUDITED
| 2013 | ||||||||||||||||||||||||||||
| (Dollars in thousands) | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||
| Balance sheets at quarter end: | ||||||||||||||||||||||||||||
| Residential mortgage loans | $ | 698,925 | $ | 668,536 | $ | 640,939 | $ | 618,381 | $ | 595,180 | $ | 565,282 | $ | 538,346 | ||||||||||||||
| Residential construction loans | 141,883 | 149,321 | 143,109 | 129,177 | 118,316 | 116,736 | 122,698 | |||||||||||||||||||||
| Commercial ADC loans | 194,666 | 178,972 | 163,343 | 160,696 | 158,739 | 163,309 | 150,599 | |||||||||||||||||||||
| Commercial investor real estate loans | 575,984 | 577,813 | 573,634 | 552,178 | 518,029 | 497,365 | 487,802 | |||||||||||||||||||||
| Commercial owner occupied real estate loans | 584,964 | 581,795 | 582,472 | 592,823 | 569,350 | 563,258 | 565,820 | |||||||||||||||||||||
| Commercial business loans | 368,611 | 357,472 | 348,180 | 356,651 | 332,670 | 334,979 | 344,489 | |||||||||||||||||||||
| Leasing | 156 | 260 | 439 | 703 | 962 | 1,415 | 1,974 | |||||||||||||||||||||
| Consumer loans | 410,723 | 396,775 | 380,697 | 373,657 | 368,764 | 363,114 | 353,341 | |||||||||||||||||||||
| Total loans and leases | 2,975,912 | 2,910,944 | 2,832,813 | 2,784,266 | 2,662,010 | 2,605,458 | 2,565,069 | |||||||||||||||||||||
| Allowance for loan and lease losses | (37,574 | ) | (37,959 | ) | (38,026 | ) | (38,766 | ) | (39,422 | ) | (39,015 | ) | (41,246 | ) | ||||||||||||||
| Investment securities | 950,869 | 980,530 | 997,584 | 1,016,609 | 1,077,951 | 1,102,209 | 1,008,693 | |||||||||||||||||||||
| Interest-earning assets | 3,976,731 | 3,945,643 | 3,891,223 | 3,836,912 | 3,771,825 | 3,802,682 | 3,660,809 | |||||||||||||||||||||
| Total assets | 4,248,731 | 4,234,342 | 4,168,998 | 4,106,100 | 4,052,969 | 4,072,617 | 3,932,026 | |||||||||||||||||||||
| Noninterest-bearing demand deposits | 986,549 | 984,700 | 882,169 | 836,198 | 890,319 | 877,891 | 832,679 | |||||||||||||||||||||
| Total deposits | 3,028,788 | 3,038,670 | 2,959,195 | 2,877,225 | 2,916,466 | 2,926,650 | 2,919,208 | |||||||||||||||||||||
| Customer repurchase agreements | 71,384 | 72,917 | 67,038 | 53,842 | 53,177 | 54,731 | 50,302 | |||||||||||||||||||||
| Total interest-bearing liabilities | 2,706,623 | 2,698,887 | 2,748,064 | 2,744,869 | 2,634,324 | 2,678,490 | 2,576,831 | |||||||||||||||||||||
| Total stockholders' equity | 522,404 | 517,269 | 510,386 | 499,363 | 493,882 | 485,643 | 488,947 | |||||||||||||||||||||
| Quarterly average balance sheets: | ||||||||||||||||||||||||||||
| Residential mortgage loans | $ | 689,531 | $ | 659,172 | $ | 633,160 | $ | 614,698 | $ | 593,335 | $ | 579,899 | $ | 575,889 | ||||||||||||||
| Residential construction loans | 147,750 | 145,968 | 134,261 | 125,744 | 120,676 | 119,197 | 120,283 | |||||||||||||||||||||
| Commercial ADC loans | 180,293 | 168,063 | 162,544 | 156,558 | 158,557 | 160,483 | 148,749 | |||||||||||||||||||||
| Commercial investor real estate loans | 577,851 | 575,283 | 557,168 | 522,085 | 499,896 | 485,630 | 474,062 | |||||||||||||||||||||
| Commercial owner occupied real estate loans | 585,014 | 579,953 | 584,155 | 580,808 | 566,366 | 561,249 | 567,723 | |||||||||||||||||||||
| Commercial business loans | 367,203 | 348,597 | 349,734 | 357,455 | 331,374 | 337,843 | 347,569 | |||||||||||||||||||||
| Leasing | 206 | 352 | 567 | 817 | 1,152 | 1,644 | 2,510 | |||||||||||||||||||||
| Consumer loans | 404,062 | 390,076 | 377,822 | 373,017 | 366,562 | 360,842 | 357,366 | |||||||||||||||||||||
| Total loans and leases | 2,951,910 | 2,867,464 | 2,799,411 | 2,731,182 | 2,637,918 | 2,606,787 | 2,594,151 | |||||||||||||||||||||
| Investment securities | 965,206 | 991,135 | 1,012,701 | 1,055,432 | 1,097,643 | 1,047,726 | 1,051,769 | |||||||||||||||||||||
| Interest-earning assets | 3,954,858 | 3,893,843 | 3,845,513 | 3,817,033 | 3,770,855 | 3,692,215 | 3,677,444 | |||||||||||||||||||||
| Total assets | 4,220,084 | 4,157,559 | 4,105,225 | 4,082,839 | 4,039,069 | 3,959,907 | 3,946,578 | |||||||||||||||||||||
| Noninterest-bearing demand deposits | 956,830 | 899,287 | 825,968 | 872,532 | 862,046 | 838,502 | 797,926 | |||||||||||||||||||||
| Total deposits | 3,036,686 | 2,965,329 | 2,876,641 | 2,901,814 | 2,903,926 | 2,892,704 | 2,860,451 | |||||||||||||||||||||
| Customer repurchase agreements | 73,046 | 68,880 | 62,864 | 57,682 | 56,766 | 55,941 | 52,622 | |||||||||||||||||||||
| Total interest-bearing liabilities | 2,711,206 | 2,716,537 | 2,749,459 | 2,679,812 | 2,659,406 | 2,599,704 | 2,631,198 | |||||||||||||||||||||
| Total stockholders' equity | 517,534 | 511,738 | 503,851 | 494,779 | 483,811 | 489,014 | 483,664 | |||||||||||||||||||||
| Financial Measures | ||||||||||||||||||||||||||||
| Average equity to average assets | 12.26 | % | 12.31 | % | 12.27 | % | 12.12 | % | 11.98 | % | 12.35 | % | 12.26 | % | ||||||||||||||
| Investment securities to earning assets | 23.91 | % | 24.85 | % | 25.64 | % | 26.50 | % | 28.58 | % | 28.99 | % | 27.55 | % | ||||||||||||||
| Loans to earning assets | 74.83 | % | 73.78 | % | 72.80 | % | 72.57 | % | 70.58 | % | 68.52 | % | 70.07 | % | ||||||||||||||
| Loans to assets | 70.04 | % | 68.75 | % | 67.95 | % | 67.81 | % | 65.68 | % | 63.98 | % | 65.24 | % | ||||||||||||||
| Loans to deposits | 98.25 | % | 95.80 | % | 95.73 | % | 96.77 | % | 91.28 | % | 89.03 | % | 87.87 | % | ||||||||||||||
| Capital measures: | ||||||||||||||||||||||||||||
| Tier 1 leverage (1) | 11.36 | % | 11.37 | % | 11.43 | % | 11.32 | % | 11.29 | % | 11.28 | % | 11.07 | % | ||||||||||||||
| Tier 1 capital to risk-weighted assets (1) | 14.52 | % | 14.48 | % | 14.64 | % | 14.42 | % | 14.45 | % | 14.30 | % | 14.23 | % | ||||||||||||||
| Total regulatory capital to risk-weighted assets (1) | 15.68 | % | 15.66 | % | 15.85 | % | 15.65 | % | 15.70 | % | 15.55 | % | 15.48 | % | ||||||||||||||
| Book value per share | $ | 20.83 | $ | 20.63 | $ | 20.38 | $ | 19.98 | $ | 19.77 | $ | 19.45 | $ | 19.59 | ||||||||||||||
| Outstanding shares | 25,076,794 | 25,069,700 | 25,043,482 | 24,990,021 | 24,985,146 | 24,967,558 | 24,954,892 | |||||||||||||||||||||
| (1) | Estimated ratio at September 30, 2014 |
| Sandy Spring Bancorp, Inc. and Subsidiaries | ||||||||||||||||||||||||||||
| LOAN PORTFOLIO QUALITY DETAIL - UNAUDITED | ||||||||||||||||||||||||||||
| 2013 | ||||||||||||||||||||||||||||
| (Dollars in thousands) | September 30, | June 30, | March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||||||||
| Non-Performing Assets: | ||||||||||||||||||||||||||||
| Loans and leases 90 days past due: | ||||||||||||||||||||||||||||
| Commercial business | $ | - | $ | 1 | $ | - | $ | - | $ | - | $ | 15 | $ | - | ||||||||||||||
| Commercial real estate: | ||||||||||||||||||||||||||||
| Commercial AD&C | - | - | - | - | - | - | - | |||||||||||||||||||||
| Commercial investor real estate | - | - | - | - | - | - | - | |||||||||||||||||||||
| Commercial owner occupied real estate | 649 | - | - | - | - | - | - | |||||||||||||||||||||
| Leasing | - | - | - | - | - | - | - | |||||||||||||||||||||
| Consumer | 6 | 3 | - | 1 | 10 | - | 54 | |||||||||||||||||||||
| Residential real estate: | ||||||||||||||||||||||||||||
| Residential mortgage | - | - | - | - | - | - | - | |||||||||||||||||||||
| Residential construction | - | - | - | - | - | - | - | |||||||||||||||||||||
| Total loans and leases 90 days past due | 655 | 4 | - | 1 | 10 | 15 | 54 | |||||||||||||||||||||
| Non-accrual loans and leases: | ||||||||||||||||||||||||||||
| Commercial business | 4,151 | 4,309 | 3,272 | 3,400 | 4,050 | 4,483 | 4,012 | |||||||||||||||||||||
| Commercial real estate: | ||||||||||||||||||||||||||||
| Commercial AD&C | 3,792 | 3,739 | 4,133 | 4,127 | 5,086 | 5,885 | 5,826 | |||||||||||||||||||||
| Commercial investor real estate | 8,210 | 6,731 | 7,284 | 6,802 | 6,877 | 11,741 | 12,353 | |||||||||||||||||||||
| Commercial owner occupied real estate | 10,742 | 10,868 | 7,150 | 5,936 | 4,202 | 5,413 | 5,346 | |||||||||||||||||||||
| Leasing | - | - | - | - | - | - | - | |||||||||||||||||||||
| Consumer | 1,830 | 2,058 | 2,115 | 2,259 | 2,004 | 2,305 | 2,388 | |||||||||||||||||||||
| Residential real estate: | ||||||||||||||||||||||||||||
| Residential mortgage | 4,417 | 4,501 | 5,025 | 5,735 | 5,643 | 5,581 | 5,393 | |||||||||||||||||||||
| Residential construction | 2,497 | 2,143 | 2,304 | 2,315 | 2,327 | 2,558 | 3,258 | |||||||||||||||||||||
| Total non-accrual loans and leases | 35,639 | 34,349 | 31,283 | 30,574 | 30,189 | 37,966 | 38,576 | |||||||||||||||||||||
| Total restructured loans - accruing | 7,382 | 7,364 | 7,411 | 9,459 | 8,054 | 8,213 | 10,839 | |||||||||||||||||||||
| Total non-performing loans and leases | 43,676 | 41,717 | 38,694 | 40,034 | 38,253 | 46,194 | 49,469 | |||||||||||||||||||||
| Other assets and real estate owned (OREO) | 1,762 | 1,967 | 1,619 | 1,338 | 1,662 | 4,831 | 5,250 | |||||||||||||||||||||
| Total non-performing assets | $ | 45,438 | $ | 43,684 | $ | 40,313 | $ | 41,372 | $ | 39,915 | $ | 51,025 | $ | 54,719 | ||||||||||||||
| For the quarter ended, | ||||||||||||||||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||||||||
| (Dollars in thousands) | 2014 | 2014 | 2014 | 2013 | 2013 | 2013 | 2013 | |||||||||||||||||||||
| Analysis of Non-accrual Loan and Lease Activity: | ||||||||||||||||||||||||||||
| Balance at beginning of period | $ | 34,349 | $ | 31,283 | $ | 30,574 | $ | 30,189 | $ | 37,966 | $ | 38,576 | $ | 47,548 | ||||||||||||||
| Non-accrual balances transferred to OREO | (300 | ) | (390 | ) | (281 | ) | (365 | ) | (723 | ) | (1,426 | ) | (92 | ) | ||||||||||||||
| Non-accrual balances charged-off | (216 | ) | (357 | ) | (513 | ) | (922 | ) | (4,995 | ) | (668 | ) | (2,175 | ) | ||||||||||||||
| Net payments or draws | (590 | ) | (1,580 | ) | (1,073 | ) | (971 | ) | (13,547 | ) | (3,560 | ) | (11,768 | ) | ||||||||||||||
| Loans placed on non-accrual | 2,396 | 5,393 | 2,576 | 3,546 | 11,488 | 5,044 | 5,493 | |||||||||||||||||||||
| Non-accrual loans brought current | - | - | - | (903 | ) | - | - | (430 | ) | |||||||||||||||||||
| Balance at end of period | $ | 35,639 | $ | 34,349 | $ | 31,283 | $ | 30,574 | $ | 30,189 | $ | 37,966 | $ | 38,576 | ||||||||||||||
| Analysis of Allowance for Loan Losses: | ||||||||||||||||||||||||||||
| Balance at beginning of period | $ | 37,959 | $ | 38,026 | $ | 38,766 | $ | 39,422 | $ | 39,015 | $ | 41,246 | $ | 42,957 | ||||||||||||||
| Provision (credit) for loan and lease losses | (192 | ) | 158 | (982 | ) | 586 | 1,128 | (2,876 | ) | 78 | ||||||||||||||||||
| Less loans charged-off, net of recoveries: | - | |||||||||||||||||||||||||||
| Commercial business | (58 | ) | 28 | (768 | ) | 384 | 1 | (32 | ) | 1,744 | ||||||||||||||||||
| Commercial real estate: | ||||||||||||||||||||||||||||
| Commercial AD&C | - | - | - | 85 | (616 | ) | (1,444 | ) | (1,020 | ) | ||||||||||||||||||
| Commercial investor real estate | (2 | ) | (23 | ) | (5 | ) | 23 | 1,243 | 123 | 31 | ||||||||||||||||||
| Commercial owner occupied real estate | - | 265 | - | (82 | ) | (284 | ) | 100 | 81 | |||||||||||||||||||
| Leasing | - | - | - | - | (6 | ) | (4 | ) | - | |||||||||||||||||||
| Consumer | 244 | 11 | 331 | 488 | 169 | 490 | 508 | |||||||||||||||||||||
| Residential real estate: | ||||||||||||||||||||||||||||
| Residential mortgage | 43 | (27 | ) | 203 | 347 | 216 | 22 | 447 | ||||||||||||||||||||
| Residential construction | (34 | ) | (29 | ) | (3 | ) | (3 | ) | (2 | ) | 100 | (2 | ) | |||||||||||||||
| Net charge-offs | 193 | 225 | (242 | ) | 1,242 | 721 | (645 | ) | 1,789 | |||||||||||||||||||
| Balance at end of period | $ | 37,574 | $ | 37,959 | $ | 38,026 | $ | 38,766 | $ | 39,422 | $ | 39,015 | $ | 41,246 | ||||||||||||||
| Asset Quality Ratios: | ||||||||||||||||||||||||||||
| Non-performing loans to total loans | 1.47 | % | 1.43 | % | 1.37 | % | 1.44 | % | 1.44 | % | 1.77 | % | 1.93 | % | ||||||||||||||
| Non-performing assets to total assets | 1.07 | % | 1.03 | % | 0.97 | % | 1.01 | % | 0.98 | % | 1.25 | % | 1.39 | % | ||||||||||||||
| Allowance for loan losses to loans | 1.26 | % | 1.30 | % | 1.34 | % | 1.39 | % | 1.48 | % | 1.50 | % | 1.61 | % | ||||||||||||||
| Allowance for loan losses to non-performing loans | 86.03 | % | 90.99 | % | 98.27 | % | 96.83 | % | 103.06 | % | 84.46 | % | 83.38 | % | ||||||||||||||
| Net charge-offs in quarter to average loans | 0.03 | % | 0.03 | % | (0.04 | )% | 0.18 | % | 0.11 | % | (0.10 | )% | 0.28 | % | ||||||||||||||
| Sandy Spring Bancorp, Inc. and Subsidiaries | ||||||||||||||||||||||||
| CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES - UNAUDITED | ||||||||||||||||||||||||
| Three Months Ended September 30, | ||||||||||||||||||||||||
| 2014 | 2013 | |||||||||||||||||||||||
| Annualized | Annualized | |||||||||||||||||||||||
| Average | (1) | Average | Average | (1) | Average | |||||||||||||||||||
| (Dollars in thousands and tax-equivalent) | Balances | Interest | Yield/Rate | Balances | Interest | Yield/Rate | ||||||||||||||||||
| Assets | ||||||||||||||||||||||||
| Residential mortgage loans(2) | $ | 689,531 | $ | 5,894 | 3.42 | % | $ | 593,335 | $ | 5,315 | 3.57 | % | ||||||||||||
| Residential construction loans | 147,750 | 1,376 | 3.69 | 120,676 | 1,106 | 3.63 | ||||||||||||||||||
| Commercial ADC loans | 180,293 | 2,196 | 4.83 | 158,557 | 3,438 | 8.60 | ||||||||||||||||||
| Commercial investor real estate loans | 577,851 | 7,009 | 4.81 | 499,896 | 8,608 | 6.83 | ||||||||||||||||||
| Commercial owner occupied real estate loans | 585,014 | 7,091 | 4.98 | 566,366 | 7,361 | 5.30 | ||||||||||||||||||
| Commercial business loans | 367,203 | 4,177 | 4.53 | 331,374 | 4,246 | 4.94 | ||||||||||||||||||
| Leasing | 206 | 4 | 6.91 | 1,152 | 20 | 7.11 | ||||||||||||||||||
| Consumer loans | 404,062 | 3,364 | 3.32 | 366,562 | 3,161 | 3.45 | ||||||||||||||||||
| Total loans and leases(3) | 2,951,910 | 31,111 | 4.22 | 2,637,918 | 33,255 | 5.03 | ||||||||||||||||||
| Taxable securities | 663,550 | 4,071 | 2.43 | 794,344 | 4,942 | 2.49 | ||||||||||||||||||
| Tax-exempt securities(4) | 301,656 | 3,240 | 4.26 | 303,299 | 3,305 | 4.36 | ||||||||||||||||||
| Interest-bearing deposits with banks | 37,268 | 24 | 0.25 | 34,819 | 22 | 0.25 | ||||||||||||||||||
| Federal funds sold | 474 | - | 0.22 | 475 | - | 0.22 | ||||||||||||||||||
| Total interest-earning assets | 3,954,858 | 38,446 | 3.89 | 3,770,855 | 41,524 | 4.39 | ||||||||||||||||||
| Less: allowance for loan and lease losses | (38,213 | ) | (41,385 | ) | ||||||||||||||||||||
| Cash and due from banks | 45,600 | 45,322 | ||||||||||||||||||||||
| Premises and equipment, net | 45,959 | 46,784 | ||||||||||||||||||||||
| Other assets | 211,880 | 217,493 | ||||||||||||||||||||||
| Total assets | $ | 4,220,084 | $ | 4,039,069 | ||||||||||||||||||||
| Liabilities and Stockholders' Equity | ||||||||||||||||||||||||
| Interest-bearing demand deposits | $ | 488,800 | 112 | 0.09 | % | $ | 442,210 | 97 | 0.09 | % | ||||||||||||||
| Regular savings deposits | 263,255 | 34 | 0.05 | 240,910 | 53 | 0.09 | ||||||||||||||||||
| Money market savings deposits | 871,271 | 293 | 0.13 | 874,946 | 342 | 0.16 | ||||||||||||||||||
| Time deposits | 456,530 | 769 | 0.67 | 483,814 | 866 | 0.71 | ||||||||||||||||||
| Total interest-bearing deposits | 2,079,856 | 1,208 | 0.23 | 2,041,880 | 1,358 | 0.26 | ||||||||||||||||||
| Other borrowings | 73,046 | 42 | 0.23 | 56,983 | 39 | 0.27 | ||||||||||||||||||
| Advances from FHLB | 523,304 | 3,258 | 2.47 | 525,543 | 3,255 | 2.46 | ||||||||||||||||||
| Subordinated debentures | 35,000 | 222 | 2.54 | 35,000 | 222 | 2.55 | ||||||||||||||||||
| Total interest-bearing liabilities | 2,711,206 | 4,730 | 0.69 | 2,659,406 | 4,874 | 0.73 | ||||||||||||||||||
| Noninterest-bearing demand deposits | 956,830 | 862,046 | ||||||||||||||||||||||
| Other liabilities | 34,514 | 33,806 | ||||||||||||||||||||||
| Stockholders' equity | 517,534 | 483,811 | ||||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 4,220,084 | $ | 4,039,069 | ||||||||||||||||||||
| Net interest income and spread | $ | 33,716 | 3.20 | % | $ | 36,650 | 3.66 | % | ||||||||||||||||
| Less: tax-equivalent adjustment | 1,296 | 1,344 | ||||||||||||||||||||||
| Net interest income | $ | 32,420 | $ | 35,306 | ||||||||||||||||||||
| Interest income/earning assets | 3.89 | % | 4.39 | % | ||||||||||||||||||||
| Interest expense/earning assets | 0.47 | 0.51 | ||||||||||||||||||||||
| Net interest margin | 3.42 | % | 3.88 | % | ||||||||||||||||||||
| (1) | Tax-equivalent income has been adjusted using the combined marginal federal and state rate of 39.88% for 2014 and 2013. The annualized taxable-equivalent adjustments utilized in the above table to compute yields aggregated to $1.3 million and $1.3 million in 2014 and 2013, respectively. |
| (2) | Includes residential mortgage loans held for sale. Home equity loans and lines are classified as consumer loans. |
| (3) | Non-accrual loans are included in the average balances. |
| (4) | Includes only investments that are exempt from federal taxes. |
| Sandy Spring Bancorp, Inc. and Subsidiaries | ||||||||||||||||||||||||
| CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES - UNAUDITED | ||||||||||||||||||||||||
| Nine Months Ended September 30, | ||||||||||||||||||||||||
| 2014 | 2013 | |||||||||||||||||||||||
| Annualized | Annualized | |||||||||||||||||||||||
| Average | (1) | Average | Average | (1) | Average | |||||||||||||||||||
| (Dollars in thousands and tax-equivalent) | Balances | Interest | Yield/Rate | Balances | Interest | Yield/Rate | ||||||||||||||||||
| Assets | ||||||||||||||||||||||||
| Residential mortgage loans(2) | $ | 660,828 | $ | 17,085 | 3.45 | % | $ | 583,105 | $ | 16,001 | 3.66 | % | ||||||||||||
| Residential construction loans | 142,709 | 3,988 | 3.74 | 120,053 | 3,142 | 3.50 | ||||||||||||||||||
| Commercial ADC loans | 170,365 | 6,450 | 5.06 | 155,965 | 7,540 | 6.46 | ||||||||||||||||||
| Commercial investor real estate loans | 570,176 | 20,881 | 4.90 | 486,624 | 20,927 | 5.75 | ||||||||||||||||||
| Commercial owner occupied real estate loans | 583,044 | 21,304 | 5.05 | 565,108 | 22,464 | 5.45 | ||||||||||||||||||
| Commercial business loans | 355,242 | 12,268 | 4.62 | 338,869 | 13,288 | 5.10 | ||||||||||||||||||
| Leasing | 374 | 16 | 5.54 | 1,764 | 88 | 6.67 | ||||||||||||||||||
| Consumer loans | 390,749 | 9,689 | 3.34 | 361,624 | 9,325 | 3.47 | ||||||||||||||||||
| Total loans and leases(3) | 2,873,487 | 91,681 | 4.30 | 2,613,112 | 92,775 | 4.77 | ||||||||||||||||||
| Taxable securities | 687,359 | 12,786 | 2.48 | 765,054 | 13,536 | 2.36 | ||||||||||||||||||
| Tax-exempt securities(4) | 302,148 | 9,767 | 4.31 | 300,826 | 9,829 | 4.36 | ||||||||||||||||||
| Interest-bearing deposits with banks | 35,004 | 66 | 0.25 | 34,379 | 65 | 0.25 | ||||||||||||||||||
| Federal funds sold | 474 | - | 0.22 | 475 | - | 0.22 | ||||||||||||||||||
| Total interest-earning assets | 3,898,472 | 114,300 | 3.94 | 3,713,846 | 116,205 | 4.19 | ||||||||||||||||||
| Less: allowance for loan and lease losses | (38,645 | ) | (42,223 | ) | ||||||||||||||||||||
| Cash and due from banks | 45,380 | 45,932 | ||||||||||||||||||||||
| Premises and equipment, net | 45,845 | 47,479 | ||||||||||||||||||||||
| Other assets | 210,325 | 216,958 | ||||||||||||||||||||||
| Total assets | $ | 4,161,377 | $ | 3,981,992 | ||||||||||||||||||||
| Liabilities and Stockholders' Equity | ||||||||||||||||||||||||
| Interest-bearing demand deposits | $ | 475,459 | 306 | 0.09 | % | $ | 436,236 | 280 | 0.09 | % | ||||||||||||||
| Regular savings deposits | 258,224 | 131 | 0.07 | 238,627 | 159 | 0.09 | ||||||||||||||||||
| Money market savings deposits | 871,399 | 839 | 0.13 | 880,794 | 1,131 | 0.17 | ||||||||||||||||||
| Time deposits | 460,548 | 2,309 | 0.67 | 497,136 | 2,639 | 0.71 | ||||||||||||||||||
| Total interest-bearing deposits | 2,065,630 | 3,585 | 0.23 | 2,052,793 | 4,209 | 0.27 | ||||||||||||||||||
| Other borrowings | 68,301 | 117 | 0.23 | 59,734 | 126 | 0.28 | ||||||||||||||||||
| Advances from FHLB | 556,663 | 9,709 | 2.33 | 482,679 | 9,667 | 2.68 | ||||||||||||||||||
| Subordinated debentures | 35,000 | 659 | 2.51 | 35,000 | 672 | 2.56 | ||||||||||||||||||
| Total interest-bearing liabilities | 2,725,594 | 14,070 | 0.69 | 2,630,206 | 14,674 | 0.75 | ||||||||||||||||||
| Noninterest-bearing demand deposits | 894,508 | 833,059 | ||||||||||||||||||||||
| Other liabilities | 30,184 | 33,230 | ||||||||||||||||||||||
| Stockholders' equity | 511,091 | 485,497 | ||||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 4,161,377 | $ | 3,981,992 | ||||||||||||||||||||
| Net interest income and spread | $ | 100,230 | 3.25 | % | $ | 101,531 | 3.44 | % | ||||||||||||||||
| Less: tax-equivalent adjustment | 3,909 | 3,967 | ||||||||||||||||||||||
| Net interest income | $ | 96,321 | $ | 97,564 | ||||||||||||||||||||
| Interest income/earning assets | 3.94 | % | 4.19 | % | ||||||||||||||||||||
| Interest expense/earning assets | 0.48 | 0.53 | ||||||||||||||||||||||
| Net interest margin | 3.46 | % | 3.66 | % | ||||||||||||||||||||
| (1) | Tax-equivalent income has been adjusted using the combined marginal federal and state rate of 39.88% for 2014 and 2013. The annualized taxable-equivalent adjustments utilized in the above table to compute yields aggregated to $3.9 million and $4.0 million in 2014 and 2013, respectively. |
| (2) | Includes residential mortgage loans held for sale. Home equity loans and lines are classified as consumer loans. |
| (3) | Non-accrual loans are included in the average balances. |
| (4) | Includes only investments that are exempt from federal taxes. |