EXHIBIT 99
[LOGO OMITTED]
NEWS RELEASE
FOR IMMEDIATE RELEASE
SANDY SPRING BANCORP REPORTS
22% INCREASE IN SECOND QUARTER EARNINGS
OLNEY, MARYLAND, July 14, 2003 -- Sandy Spring Bancorp, (NASDAQ-SASR, SASRP) the
parent company of Sandy Spring Bank, today announced net income for the second
quarter of 2003 of $8.8 million ($.60 per diluted share) compared to $7.2
million ($.48 per diluted share) for the second quarter of 2002, a 22% increase.
Net income for the six month period ending June 30, 2003 totaled $17.1 million
($1.16 per diluted share) compared to $13.7 million ($0.93 per diluted share)
for the prior year period, a 24% increase. As described below, earnings in the
quarter and year-to-date were positively impacted by income from the early
termination of a sublease agreement.
"Sandy Spring reported healthy advances in earnings for the second quarter and
the six-month period, largely on the strength of our noninterest income. The
continuing decline in the net interest margin has compressed the company's
ability to derive revenue from its traditional lending and deposit-gathering
activities, but we believe we are well-positioned to weather this cycle and
benefit from rising rates once trends begin to reverse," said Hunter R. Hollar,
President and Chief Executive Officer.
Return on average stockholders' equity was 19.03% for the second quarter of
2003, compared to 18.45% for the second quarter of 2002. Return on average
assets for the second quarter of 2003 was 1.51%, compared to 1.35% for the
second quarter of 2002.
For the first six months of 2003, return on average stockholders' equity was
18.85% compared to 17.93% for the first six months of 2002. Return on average
assets for the first six months of 2003 was 1.48% compared to 1.32% for the
first six months of 2002.
Comparing June 30, 2003 balances to June 30, 2002, total assets were $2.4
billion versus $2.2 billion, a 10% increase. Total deposits increased 13% to
$1.6 billion, while total loans and leases increased 1% to $1.1 billion compared
to the prior year. At June 30, 2003, stockholders' equity totaled $189 million
representing 8% of total assets.
Due to continuing strong asset quality and lower loan volumes, there was no
provision for credit losses in the quarter compared to a provision of $1.0
million in the second quarter of 2002. There was also no provision for credit
losses for the first six months of 2003 compared to a provision of $2.2 million
for the first six months of 2002.
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.
DETAILED REVIEW OF FINANCIAL RESULTS
Comparing the second quarter of 2003 and 2002, net interest income decreased by
$1.8 million, or 9%, due primarily to a decline in the net interest margin to
3.75% in 2003 from 4.39% in 2002. However, noninterest income increased by $3.3
million, or 50%, over 2002. On a non-GAAP basis excluding investment gains,
which increased by $.5 million, and a $1.1 million gain from early termination
of a sublease, quarterly noninterest income increased $1.7 million, or 26%.
While historically low market interest rates had the effect of compressing the
net interest margin, such lower rates also positively impacted the level of
mortgage banking activity resulting in a significant increase in gain on sale of
mortgage loans, which increased 116% in the second quarter of 2003 over 2002.
Also contributing to growth in noninterest income was trust revenues, which
posted a 25% gain over the prior year, insurance agency commissions, which
increased 17% over the prior year and income from sales of investment products,
which increased 20% over the second quarter of 2002. Noninterest expenses were
$16.6 million in 2003 compared to $16.1 million in 2002, a 3% increase.
Noninterest expenses in each quarter include the amortization of intangible
assets of $.6 million. The GAAP based efficiency ratio was 58.6% for the second
quarter of 2003 while the traditional, non-GAAP efficiency ratio was 55.9%.
Comparing the first six months of 2003 and 2002, net interest income decreased
by $1.2 million, or 3%, due primarily to the margin compression resulting from a
decline in the net interest margin to 3.84% for the first six months of 2003
from 4.28% for the same period in 2002. Noninterest income was $17.8 million for
the six months ended June 30, 2003 versus $13.5 million for the same period in
2002, an increase of $4.3 million, or 32%. On a non-GAAP basis, noninterest
income, excluding the effect of securities gains of $.6 million, up $.3 million,
and the income from the early termination of a sublease, the increase in
noninterest income was $2.9 million, or 22%. This increase was due primarily to
growth in mortgage banking revenues; income from trust operations, insurance
agency revenues and income from bank owned life insurance. Noninterest expenses
were $32.6million in 2003 compared to $31.4 million in 2002, a 4% percent
increase. Noninterest expenses in each six-month period include the amortization
of intangible assets of $1.3 million. The GAAP based efficiency ratio was 59.0%
for the first six months of 2003 while the traditional, non-GAAP efficiency
ratio was 54.4%, both reflecting improvements over the first six months of 2002.
The sublease arrangement referred to above commenced in May 2000 on space the
Company has leased on a long-term basis. The space is currently in the process
of renovation for use by the Company.
Although there are many uncertainties in the year ahead, current economic
conditions regarding weaker than expected loan growth and margin compression,
resulting from lower than anticipated interest rates, cause management to expect
a lower range of diluted earnings per share of $2.00 - $2.10 for the year 2003,
compared to the earlier expectations of $2.10 - $2.20 per diluted share. Please
see the information below regarding Forward-Looking Statements, such as this
statement of expected earnings.
ABOUT SANDY SPRING BANCORP/SANDY SPRING BANK
With $2.4 billion in assets, Sandy Spring Bancorp is the holding company for
Sandy Spring Bank and its principal subsidiaries, Sandy Spring Insurance
Corporation and The Equipment Leasing Company. Sandy Spring Bancorp is the third
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 30 community offices and 45 ATMs located in Anne
Arundel, Frederick, Howard, Montgomery, and Prince George's counties in
Maryland. Visit www.sandyspringbank.com for more information.
For additional information or questions, please contact:
Hunter R. Hollar, President & Chief Executive Officer or
James H. Langmead, Executive V.P. & Chief Financial Officer
Sandy Spring Bancorp
17801 Georgia Avenue
Olney, Maryland 20832
1-800-399-5919
E-mail: HHollar@sandyspringbank.com
JLangmead@sandyspringbank.com
Web site: www.sandyspringbank.com
FORWARD-LOOKING STATEMENTS: Sandy Spring Bancorp makes forward-looking
statements in this News Release that are subject to risks and uncertainties.
These forward-looking statements include: statements of goals, intentions, and
earnings and performance expectations; estimates of risks and of future costs
and benefits; assessments of probable loan and lease losses and market risk; and
statements of the ability to achieve financial and other goals. These
forward-looking statements are subject to significant uncertainties because they
are based upon or are affected by: management's estimates and projections of
future interest rates and other economic conditions; future laws and
regulations; and a variety of other matters which, by their nature, are subject
to significant uncertainties. Because of these uncertainties, Sandy Spring
Bancorp's actual future results may differ materially from those indicated. In
addition, the Sandy Spring Bancorp's past results of operations do not
necessarily indicate its future results.
Sandy Spring Bancorp, Inc. and Subsidiaries
FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share data)
Three Months Ended Six Months Ended
June 30, % June 30, %
-------------------------- ----------------------------
2003 2002 Change 2003 2002 Change
- ----------------------------------------------------------------------------------------------------------------------- ----------
PROFITABILITY FOR THE PERIOD:
Net interest income $ 18,291 $ 20,083 (9) $ 37,416 $ 38,658 (3)
Provision for credit losses 0 985 (100) 0 2,170 (100)
Noninterest income 10,032 6,685 50 17,807 13,483 32
Noninterest expenses 16,605 16,118 3 32,580 31,416 4
Income before income taxes 11,718 9,665 21 22,643 18,555 22
Net income 8,763 7,158 22 17,068 13,714 24
Return on average assets 1.51% 1.35% 1.48% 1.32%
Return on average equity 19.03% 18.45% 18.85% 17.93%
Net interest margin 3.75% 4.39% 3.84% 4.28%
Efficiency ratio - GAAP based * 58.63% 60.21% 59.00% 60.25%
Efficiency ratio - traditional * 55.91% 54.34% 54.40% 54.65%
PER SHARE DATA:
Basic net income $ 0.61 $ 0.50 22 $ 1.18 $ 0.95 24
Diluted net income 0.60 0.48 25 1.16 0.93 25
Dividends declared 0.18 0.17 6 0.36 0.34 6
Book value 13.09 11.28 16 13.09 11.28 16
Tangible book value 11.69 9.70 21 11.69 9.70 21
Average fully diluted shares 14,676,404 14,724,774 14,709,547 14,714,104
AT PERIOD-END:
Assets $ 2,367,364 $ 2,158,785 10 $ 2,367,364 $ 2,158,785 10
Deposits 1,590,144 1,409,853 13 1,590,144 1,409,853 13
Loans and leases 1,069,688 1,057,664 1 1,069,688 1,057,664 1
Securities 1,037,460 916,084 13 1,037,460 916,084 13
Stockholders' equity 189,297 163,641 16 189,297 163,641 16
CAPITAL AND CREDIT QUALITY RATIOS:
Average equity to average assets 7.92% 7.34% 7.88% 7.37%
Allowance for credit losses to loans
and leases 1.41% 1.41% 1.41% 1.41%
Nonperforming assets to total assets 0.07% 0.35% 0.07% 0.35%
Annualized net (charge-offs) recoveries
to average loans and leases 0.00% 0.02% 0.00% 0.02%
* The GAAP based efficiency ratio is noninterest expenses divided by net
interest income plus noninterest income from the Consolidated Statements of
Income.
The traditional, non-GAAP efficiency ratio excludes intangible asset
amortization from noninterest expenses; excludes income from an early
termination of a sublease in 2003 and securities gains from noninterest
income; and adds the tax-equivalent adjustment to net interest income. See
the Reconciliation Table included with these Financial Highlights.
Certain reclassifications of information previously reported have been made to
conform with current presentation.
Sandy Spring Bancorp, Inc. and Subsidiaries
RECONCILIATION OF GAAP-BASED AND TRADITIONAL EFFICIENCY RATIOS
(In thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
-------------------- --------------------
2003 2002 2003 2002
-------- -------- -------- --------
Noninterest expenses-GAAP based $ 16,605 $ 16,118 $ 32,580 $ 31,416
Net interest income plus noninterest income-
GAAP based 28,323 26,768 55,223 52,141
Efficiency ratio-GAAP based 58.63% 60.21% 59.00% 60.25%
======== ======== ======== ========
Noninterest expenses-GAAP based $ 16,605 $ 16,118 $ 32,580 $ 31,416
Less non-GAAP adjustment:
Amortization of intangible assets 664 664 1,329 1,329
-------- -------- -------- --------
Noninterest expenses-traditional ratio 15,941 15,454 31,251 30,087
Net interest income plus noninterest income-
GAAP based 28,323 26,768 55,223 52,141
Plus non-GAAP adjustment:
Tax-equivalency 1,809 1,670 3,855 3,139
Less non-GAAP adjustments:
Securities gains 543 (3) 551 230
Income from an early termination of
a sublease 1,077 0 1,077 0
-------- -------- -------- --------
Net interest income plus noninterest
income - traditional ratio 28,512 28,441 57,450 55,050
Efficiency ratio - traditional 55.91% 54.34% 54.40% 54.65%
======== ======== ======== ========
Sandy Spring Bancorp, Inc. and Subsidiaries
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except per share data)
June 30, December 31,
-------------------------- -----------
2003 2002 2002
- ----------------------------------------------------------------------------------------------------------- -----------
ASSETS
Cash and due from banks $ 46,740 $ 35,253 $ 38,998
Federal funds sold 67,765 44,438 9,135
Interest-bearing deposits with banks 665 842 813
Residential mortgage loans held for sale 29,016 8,677 38,435
Investments available-for-sale (at fair value) 764,164 665,311 685,586
Investments held-to-maturity - fair value of $265,353
$237,031, and $346,862, respectively 253,318 232,956 340,860
Other equity securities 19,978 17,817 19,812
Total loans and leases 1,069,688 1,057,664 1,063,853
Less: allowance for credit losses (15,033) (14,911) (15,036)
----------- ----------- -----------
Net loans and leases 1,054,655 1,042,753 1,048,817
Premises and equipment, net 37,851 33,836 36,007
Accrued interest receivable 14,904 15,531 14,957
Goodwill 7,642 7,642 7,642
Other intangible assets, net 12,597 15,256 13,927
Other assets 58,069 38,473 52,415
----------- ----------- -----------
Total assets $ 2,367,364 $ 2,158,785 $ 2,307,404
=========== =========== ===========
LIABILITIES
Noninterest-bearing deposits $ 373,429 $ 289,735 $ 320,583
Interest-bearing deposits 1,216,715 1,120,118 1,171,629
----------- ----------- -----------
Total deposits 1,590,144 1,409,853 1,492,212
Short-term borrowings 446,770 461,592 488,214
Guaranteed preferred beneficial interests in
the Company's subordinated debentures 35,000 35,000 35,000
Other long-term borrowings 88,433 79,184 90,500
Accrued interest payable and other liabilities 17,720 9,515 22,786
----------- ----------- -----------
Total liabilities 2,178,067 1,995,144 2,128,712
STOCKHOLDERS' EQUITY
Common stock -- par value $1.00; shares authorized
50,000,000; shares issued and outstanding 14,465,144
14,508,451 and 14,536,094, respectively 14,465 14,508 14,536
Additional paid in capital 18,655 20,803 21,128
Retained earnings 144,452 120,690 132,607
Accumulated other comprehensive income 11,725 7,640 10,421
----------- ----------- -----------
Total stockholders' equity 189,297 163,641 178,692
----------- ----------- -----------
Total liabilities and stockholders' equity $ 2,367,364 $ 2,158,785 $ 2,307,404
=========== =========== ===========
Certain reclassifications of information previously reported have been made to
conform with current presentation.
Sandy Spring Bancorp, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
------------------- -------------------
2003 2002 2003 2002
-------- -------- -------- --------
Interest income:
Interest and fees on loans and leases $ 16,252 $ 18,240 $ 32,871 $ 35,962
Interest on loans held for sale 263 154 571 327
Interest on deposits with banks 4 9 7 17
Interest and dividends on securities:
Taxable 7,880 9,909 16,612 19,168
Exempt from federal income taxes 3,483 2,585 6,951 4,997
Interest on federal funds sold 109 136 215 256
-------- -------- -------- --------
Total interest income 27,991 31,033 57,227 60,727
Interest expense:
Interest on deposits 3,728 4,996 7,661 10,320
Interest on short-term borrowings 4,453 3,907 9,121 7,630
Interest on long-term borrowings 1,519 2,047 3,029 4,119
-------- -------- -------- --------
Total interest expense 9,700 10,950 19,811 22,069
-------- -------- -------- --------
Net interest income 18,291 20,083 37,416 38,658
Provision for credit losses 0 985 0 2,170
-------- -------- -------- --------
Net interest income after provision for credit losses 18,291 19,098 37,416 36,488
Noninterest income:
Securities gains (losses) 543 (3) 551 230
Service charges on deposit accounts 2,037 1,953 4,021 3,831
Gains on sales of mortgage loans 1,603 741 3,178 1,479
Fees on sales of investment products 666 556 1,187 1,196
Trust department income 758 605 1,478 1,174
Insurance agency commissions 922 790 1,941 1,776
Income from bank owned life insurance 710 432 1,319 867
Income from an early termination of a sublease 1,077 0 1,077 0
Other income 1,716 1,611 3,055 2,930
-------- -------- -------- --------
Total noninterest income 10,032 6,685 17,807 13,483
Noninterest expenses:
Salaries and employee benefits 9,514 9,430 18,964 18,726
Occupancy expense of premises 1,533 1,558 3,117 2,864
Equipment expenses 1,099 956 2,140 1,765
Marketing 509 574 963 976
Outside data services 660 634 1,305 1,247
Amortization of intangible assets 664 664 1,329 1,329
Other expenses 2,626 2,302 4,762 4,509
-------- -------- -------- --------
Total noninterest expenses 16,605 16,118 32,580 31,416
-------- -------- -------- --------
Income before income taxes 11,718 9,665 22,643 18,555
Income tax expense 2,955 2,507 5,575 4,841
-------- -------- -------- --------
Net income $ 8,763 $ 7,158 $ 17,068 $ 13,714
======== ======== ======== ========
Basic net income per share $ 0.61 $ 0.50 $ 1.18 $ 0.95
Diluted net income per share 0.60 0.48 1.16 0.93
Dividends declared per share 0.18 0.17 0.36 0.34
Certain reclassifications of information previously reported have been made to
conform with current presentation.
Sandy Spring Bancorp, Inc. and Subsidiaries
HISTORICAL TRENDS IN QUARTERLY FINANCIAL DATA 2003 2002
-------------------------- --------------------------------------------------------
(Dollars in thousands, except per share data) Q2 Q1 Q4 Q3 Q2 Q1
- ------------------------------------------------------------------------ --------------------------------------------------------
PROFITABILITY FOR THE QUARTER:
Tax-equivalent interest income $ 29,800 $ 31,282 $ 32,887 $ 32,890 $ 32,703 $ 31,163
- ------------------------------------------------------------------------------------------------------------------------------------
Interest expense 9,700 10,111 10,797 11,034 10,950 11,119
- ------------------------------------------------------------------------------------------------------------------------------------
Tax-equivalent net interest income 20,100 21,171 22,090 21,856 21,753 20,044
- ------------------------------------------------------------------------------------------------------------------------------------
Tax-equivalent adjustment 1,809 2,046 1,859 1,922 1,670 1,469
- ------------------------------------------------------------------------------------------------------------------------------------
Provision for credit losses 0 0 300 395 985 1,185
- ------------------------------------------------------------------------------------------------------------------------------------
Noninterest income 10,032 7,775 8,631 7,615 6,685 6,798
- ------------------------------------------------------------------------------------------------------------------------------------
Noninterest expenses 16,605 15,975 16,698 15,847 16,118 15,298
- ------------------------------------------------------------------------------------------------------------------------------------
Income before income taxes 11,718 10,925 11,864 11,306 9,665 8,890
- ------------------------------------------------------------------------------------------------------------------------------------
Income tax expense 2,955 2,620 3,122 3,049 2,507 2,334
- ------------------------------------------------------------------------------------------------------------------------------------
Net Income 8,763 8,305 8,742 8,257 7,158 6,556
====================================================================================================================================
FINANCIAL RATIOS:
Return on average assets 1.51% 1.46% 1.53% 1.50% 1.35% 1.29%
- ------------------------------------------------------------------------------------------------------------------------------------
Return on average equity 19.03% 18.64% 19.89% 19.64% 18.45% 17.41%
- ------------------------------------------------------------------------------------------------------------------------------------
Net interest margin 3.75% 3.94% 4.17% 4.23% 4.39% 4.18%
- ------------------------------------------------------------------------------------------------------------------------------------
Efficiency ratio - GAAP based * 58.63% 59.39% 57.85% 57.52% 60.21% 60.29%
- ------------------------------------------------------------------------------------------------------------------------------------
Efficiency ratio - traditional * 55.91% 52.91% 53.94% 52.94% 54.34% 54.99%
====================================================================================================================================
PER SHARE DATA:
Basic net income $ 0.61 $ 0.57 $ 0.61 $ 0.56 $ 0.50 $ 0.45
- ------------------------------------------------------------------------------------------------------------------------------------
Diluted net income $ 0.60 $ 0.56 $ 0.59 $ 0.56 $ 0.48 $ 0.45
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends declared $ 0.18 $ 0.18 $ 0.18 $ 0.17 $ 0.17 $ 0.17
- ------------------------------------------------------------------------------------------------------------------------------------
Book value $ 13.09 $ 12.58 $ 12.29 $ 11.91 $ 11.28 $ 10.45
- ------------------------------------------------------------------------------------------------------------------------------------
Tangible book value $ 11.69 $ 11.14 $ 10.81 $ 10.38 $ 9.70 $ 8.82
- ------------------------------------------------------------------------------------------------------------------------------------
Average fully diluted shares 14,676,404 14,743,976 14,729,882 14,727,897 14,724,774 14,709,011
====================================================================================================================================
NONINTEREST INCOME BREAKDOWN:
Securities gains (losses) $ 543 $ 8 $ 995 $ 791 $ (3) $ 233
- ------------------------------------------------------------------------------------------------------------------------------------
Service charges on deposit accounts 2,037 1,984 2,091 1,917 1,953 1,878
- ------------------------------------------------------------------------------------------------------------------------------------
Gains on sales of mortgage loans 1,603 1,575 1,461 1,000 741 738
- ------------------------------------------------------------------------------------------------------------------------------------
Fees on sales of investment products 666 521 457 425 556 640
- ------------------------------------------------------------------------------------------------------------------------------------
Trust department income 758 720 671 652 605 569
- ------------------------------------------------------------------------------------------------------------------------------------
Insurance agency commissions 922 1,019 848 657 790 986
- ------------------------------------------------------------------------------------------------------------------------------------
Income from bank owned life insurance 710 609 516 493 432 435
- ------------------------------------------------------------------------------------------------------------------------------------
Income from an early termination of a sublease 1,077 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
Other income 1,716 1,339 1,592 1,680 1,611 1,319
- ------------------------------------------------------------------------------------------------------------------------------------
Total 10,032 7,775 8,631 7,615 6,685 6,798
====================================================================================================================================
NONINTEREST EXPENSE BREAKDOWN:
Salaries and employee benefits $ 9,514 $ 9,450 $ 10,449 $ 9,396 $ 9,430 $ 9,296
- ------------------------------------------------------------------------------------------------------------------------------------
Occupancy expense of premises 1,533 1,584 1,366 1,369 1,558 1,306
- ------------------------------------------------------------------------------------------------------------------------------------
Equipment expenses 1,099 1,041 1,096 949 956 809
- ------------------------------------------------------------------------------------------------------------------------------------
Marketing 509 454 493 438 574 402
- ------------------------------------------------------------------------------------------------------------------------------------
Outside data services 660 645 574 594 634 613
- ------------------------------------------------------------------------------------------------------------------------------------
* The GAAP based efficiency ratio is noninterest expenses divided by net
interest income plus noninterest income from the Consolidated Statements of
Income. The traditional, non-GAAP efficiency ratio excludes intangible asset
amortization from noninterest expenses; excludes income from an early
termination of a sublease in 2003 and securities 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 2003 2002
------------------------- ---------------------------------------------------------
(Dollars in thousands, except per share data) Q2 Q1 Q4 Q3 Q2 Q1
- ---------------------------------------------------------------------- ---------------------------------------------------------
NONINTEREST EXPENSE BREAKDOWN (CONTINUED):
Amortization of intangible assets $ 664 $ 665 665 665 664 $ 665
- ------------------------------------------------------------------------------------------------------------------------------------
Other expenses 2,626 2,136 2,055 2,436 2,302 2,207
- ------------------------------------------------------------------------------------------------------------------------------------
Total 16,605 15,975 16,698 15,847 16,118 15,298
====================================================================================================================================
BALANCE SHEETS AT QUARTER END:
Residential mortgage loans $ 292,415 $ 276,001 $ 281,088 $ 278,954 $ 274,839 $ 267,691
- ------------------------------------------------------------------------------------------------------------------------------------
Residential construction loans 71,016 66,937 73,585 80,655 80,756 74,381
- ------------------------------------------------------------------------------------------------------------------------------------
Commercial mortgage loans 263,227 260,437 257,118 239,993 241,353 235,294
- ------------------------------------------------------------------------------------------------------------------------------------
Commercial construction loans 47,393 54,238 51,947 56,497 54,749 53,732
- ------------------------------------------------------------------------------------------------------------------------------------
Commercial loans and leases 161,772 160,344 166,949 171,174 167,541 158,614
- ------------------------------------------------------------------------------------------------------------------------------------
Consumer loans 233,865 232,359 233,166 239,132 238,426 229,878
- ------------------------------------------------------------------------------------------------------------------------------------
Total loans and leases 1,069,688 1,050,316 1,063,853 1,066,405 1,057,664 1,019,590
- ------------------------------------------------------------------------------------------------------------------------------------
Less: allowance for credit losses (15,033) (15,023) (15,036) (15,220) (14,911) (13,877)
- ------------------------------------------------------------------------------------------------------------------------------------
Net loans and leases 1,054,655 1,035,293 1,048,817 1,051,185 1,042,753 1,005,713
- ------------------------------------------------------------------------------------------------------------------------------------
Goodwill 7,642 7,642 7,642 7,642 7,642 7,642
- ------------------------------------------------------------------------------------------------------------------------------------
Other intangible assets, net 12,597 13,262 13,927 14,591 15,256 15,920
- ------------------------------------------------------------------------------------------------------------------------------------
Total assets 2,367,364 2,371,520 2,307,404 2,261,508 2,158,785 2,082,832
- ------------------------------------------------------------------------------------------------------------------------------------
Total deposits 1,590,144 1,555,513 1,492,212 1,465,147 1,409,853 1,393,367
- ------------------------------------------------------------------------------------------------------------------------------------
Total stockholders' equity 189,297 182,499 178,692 172,887 163,641 151,430
====================================================================================================================================
QUARTERLY AVERAGE BALANCE SHEETS:
Residential mortgage loans $ 302,344 $ 304,494 $ 306,872 $ 291,703 $ 279,820 $ 272,145
- ------------------------------------------------------------------------------------------------------------------------------------
Residential construction loans 68,296 72,031 79,698 78,816 76,261 79,701
- ------------------------------------------------------------------------------------------------------------------------------------
Commercial mortgage loans 263,616 258,707 253,465 242,138 241,594 235,783
- ------------------------------------------------------------------------------------------------------------------------------------
Commercial construction loans 52,847 52,970 52,572 55,657 54,227 54,494
- ------------------------------------------------------------------------------------------------------------------------------------
Commercial loans and leases 162,149 163,216 167,319 166,540 160,745 149,170
- ------------------------------------------------------------------------------------------------------------------------------------
Consumer loans 229,085 231,770 234,243 240,174 231,585 221,083
- ------------------------------------------------------------------------------------------------------------------------------------
Total loans and leases 1,078,337 1,083,188 1,094,169 1,075,028 1,044,232 1,012,376
- ------------------------------------------------------------------------------------------------------------------------------------
Securities 1,058,878 1,039,112 987,663 943,083 910,235 882,497
- ------------------------------------------------------------------------------------------------------------------------------------
Total earning assets 2,177,451 2,158,817 2,125,714 2,051,202 1,987,313 1,926,617
- ------------------------------------------------------------------------------------------------------------------------------------
Total assets 2,330,589 2,305,834 2,269,918 2,186,028 2,119,776 2,064,136
- ------------------------------------------------------------------------------------------------------------------------------------
Total interest-bearing liabilities 1,801,472 1,799,132 1,769,910 1,719,174 1,683,225 1,637,363
- ------------------------------------------------------------------------------------------------------------------------------------
Noninterest-bearing demand deposits 322,431 299,638 307,585 284,915 269,658 260,575
- ------------------------------------------------------------------------------------------------------------------------------------
Total deposits 1,537,111 1,488,023 1,469,979 1,418,211 1,393,004 1,368,143
- ------------------------------------------------------------------------------------------------------------------------------------
Stockholders' equity 184,650 180,700 174,381 166,769 155,597 152,735
====================================================================================================================================
CAPITAL AND CREDIT QUALITY MEASURES:
Average equity to average assets 7.92% 7.84% 7.68% 7.63% 7.34% 7.40%
- ------------------------------------------------------------------------------------------------------------------------------------
Credit loss allowance to loans and leases 1.41% 1.43% 1.41% 1.43% 1.41% 1.36%
- ------------------------------------------------------------------------------------------------------------------------------------
Nonperforming assets to total assets 0.07% 0.08% 0.12% 0.32% 0.35% 0.38%
- ------------------------------------------------------------------------------------------------------------------------------------
Annualized net (charge-offs) recoveries to
average loans and leases 0.00% 0.00% (0.18)% (0.03)% 0.02% 0.02%
====================================================================================================================================
MISCELLANEOUS DATA:
Net (charge-offs) recoveries $ 10 $ (13) $ (484) $ (86) $ 49 $ 39
- ------------------------------------------------------------------------------------------------------------------------------------
Nonperforming assets:
Non-accrual loans and leases 479 567 588 6,109 5,730 6,039
- ------------------------------------------------------------------------------------------------------------------------------------
Loans and leases 90 days past due 900 1,381 2,157 1,022 1,761 1,872
- ------------------------------------------------------------------------------------------------------------------------------------
Restructured loans and leases 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
Other real estate owned, net 187 0 0 44 79 50
- ------------------------------------------------------------------------------------------------------------------------------------
Total nonperforming assets 1,566 1,948 2,745 7,175 7,570 7,961
====================================================================================================================================
Sandy Spring Bancorp, Inc. and Subsidiaries
CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES
(Dollars in thousands and tax-equivalent)
Three Months Ended June 30,
-------------------------------------------------------------------------------
2003 2002
--------------------------------------- -------------------------------------
AVERAGE ANNUALIZED YIELD/ Average Annualized Yield/
BALANCES INTEREST RATE Balance Interest Rate
---------- ---------- ------ ---------- ---------- -------
Assets
Residential mortgage loans $ 302,344 $ 18,022 5.96 % $ 279,820 $ 19,466 6.96 %
Residential construction loans 68,296 3,578 5.24 76,261 4,482 5.88
Commercial mortgage loans 263,616 18,484 7.01 241,594 19,326 8.00
Commercial construction loans 52,847 3,059 5.79 54,227 3,172 5.85
Commercial loans and leases 162,149 11,595 7.15 160,745 13,099 8.15
Consumer loans 229,085 11,446 5.00 231,585 14,166 6.12
---------- ---------- ---------- ---------
Total loans and leases 1,078,337 66,184 6.14 1,044,232 73,711 7.06
Securities 1,058,878 53,885 5.09 910,235 56,545 6.21
Interest-bearing deposits with banks 1,310 14 1.11 1,095 34 3.11
Federal funds sold 38,926 435 1.12 31,751 541 1.70
---------- ---------- ---------- ---------
TOTAL EARNING ASSETS 2,177,451 120,518 5.53 % 1,987,313 130,831 6.58 %
Less: allowance for credit losses (15,017) (14,284)
Cash and due from banks 35,000 34,126
Premises and equipment, net 36,637 33,692
Other assets 96,518 78,929
---------- ----------
Total assets $2,330,589 $2,119,776
========== ==========
Liabilities and Stockholders' Equity
Interest-bearing demand deposits $ 198,753 $ 451 0.23 % $ 176,352 $ 501 0.28 %
Regular savings deposits 168,864 471 0.28 146,098 1,483 1.02
Money market savings deposits 401,293 2,918 0.73 382,312 4,666 1.22
Time deposits 445,770 11,112 2.49 418,584 13,110 3.13
---------- ---------- ---------- ---------
Total interest-bearing deposits 1,214,680 14,952 1.23 1,123,346 19,760 1.76
Borrowings 586,792 23,896 4.07 559,879 23,824 4.26
---------- ---------- ---------- ---------
TOTAL INTEREST-BEARING LIABILITIES 1,801,472 38,848 2.16 1,683,225 43,584 2.59
---------- ---- --------- ----
Net interest income and spread $ 81,670 3.37 % $ 87,247 3.99 %
========== ==== ========= ====
Noninterest-bearing demand deposits 322,431 269,658
Other liabilities 22,036 11,296
Stockholder's equity 184,650 155,597
---------- ----------
Total liabilities and stockholders' equity $2,330,589 $2,119,776
========== ==========
Interest income/earning assets 5.53 % 6.58 %
Interest expense/earning assets 1.78 2.19
---- ----
Net interest margin 3.75 % 4.39 %
==== ====
Sandy Spring Bancorp, Inc. and Subsidiaries
CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES
(Dollars in thousands and tax-equivalent)
Six Months Ended June 30,
-----------------------------------------------------------------------------
2003 2002
---------------------------------- ----------------------------------
AVERAGE ANNUALIZED YIELD/ Average Annualized Yield/
BALANCES INTEREST RATE Balance Interest Rate
---------- ---------- ------ ---------- --------- ------
ASSETS
Residential mortgage loans $ 303,413 $ 18,372 6.06 % $ 276,004 $ 19,484 7.06 %
Residential construction loans 70,153 3,729 5.32 77,971 4,393 5.63
Commercial mortgage loans 261,175 18,455 7.07 238,705 19,030 7.97
Commercial construction loans 52,908 3,135 5.92 54,360 3,231 5.94
Commercial loans and leases 162,680 11,763 7.23 154,990 12,851 8.29
Consumer loans 230,420 11,810 5.13 226,363 14,000 6.18
---------- --------- ---------- ---------
Total loans and leases 1,080,749 67,264 6.22 1,028,393 72,989 7.10
Securities 1,049,040 55,287 5.27 896,444 54,579 6.09
Interest-bearing deposits with banks 1,278 14 1.09 1,113 32 2.88
Federal funds sold 37,109 429 1.16 31,184 512 1.64
---------- --------- ---------- ---------
TOTAL EARNING ASSETS 2,168,176 122,994 5.67 % 1,957,134 128,112 6.55 %
Less: allowance for credit losses (15,028) (13,687)
Cash and due from banks 34,799 35,660
Premises and equipment, net 36,452 33,222
Other assets 93,872 79,810
---------- ----------
Total assets 2,318,271 $2,092,139
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest-bearing demand deposits $ 192,468 $ 484 0.25 % $ 170,944 $ 464 0.27 %
Regular savings deposits 163,187 530 0.33 134,246 1,357 1.01
Money market savings deposits 402,550 3,017 0.75 387,347 4,558 1.18
Time deposits 443,508 11,417 2.57 422,963 14,432 3.41
---------- --------- ---------- ---------
Total interest-bearing deposits 1,201,713 15,448 1.29 1,115,500 20,811 1.87
Borrowings 598,704 24,321 4.06 544,920 23,527 4.32
---------- --------- ---------- ---------
TOTAL INTEREST-BEARING LIABILITIES 1,800,417 39,769 2.21 1,660,420 44,338 2.67
--------- ---- --------- ----
Net interest income and spread $ 83,225 3.46 % $ 83,774 3.88 %
========= ==== ========= ====
Noninterest-bearing demand deposits 311,097 265,172
Other liabilities 24,169 12,335
Stockholder's equity 182,588 154,212
---------- ----------
Total liabilities and stockholders' equity $2,318,271 $2,092,139
========== ==========
Interest income/earning assets 5.67 % 6.55 %
Interest expense/earning assets 1.83 2.27
---- ----
Net interest margin 3.84 % 4.28 %
==== ====