EXHIBIT 99
[GRAPHIC OMITTED]
[GRAPHIC OMITTED]
NEWS RELEASE
FOR IMMEDIATE RELEASE
SANDY SPRING BANCORP REPORTS
15% INCREASE IN NINE MONTH EARNINGS
OLNEY, MARYLAND, October 14, 2003 -- Sandy Spring Bancorp, (Nasdaq-SASR) the
parent company of Sandy Spring Bank, today announced net income for the third
quarter of 2003 of $8.3 million ($.56 per diluted share) compared to $8.3
million ($.56 per diluted share) for the third quarter of 2002. Net income for
the nine-month period ending September 30, 2003 totaled $25.3 million ($1.72 per
diluted share) compared to $22.0 million ($1.49 per diluted share) for the prior
year period, a 15% increase.
"Net interest income remained under pressure during the quarter due to ongoing
margin compression, an industry-wide circumstance as rates continue to hover at
historical lows. In spite of the rate environment and lower than anticipated
loan growth, we continued to build the non-interest revenue producing segments
of our business such as trust and insurance, where the returns continue to be
healthy. On the mortgage side, good gains were again recorded during the
quarter, although we believe we are approaching the end of that cycle. We opened
two new branches in the promising Frederick, MD market, bringing our total there
to 3, while closing two small facilities in Montgomery County, resulting in an
unchanged net total of branches (30) at quarter-end," said Hunter R. Hollar,
President and Chief Executive Officer.
Return on average stockholders' equity was 17.47% for the third quarter of 2003,
compared to 19.64% for the third quarter of 2002. Return on average assets for
the third quarter of 2003 was 1.38%, compared to 1.50% for the third quarter of
2002.
For the first nine months of 2003, return on average stockholders' equity was
18.36% compared to 18.54% for the first nine months of 2002. Return on average
assets for the first nine months of 2003 was 1.45% compared to 1.38% for the
first nine months of 2002.
Comparing September 30, 2003 balances to September 30, 2002, total assets were
$2.4 billion versus $2.3 billion, a 5% increase. Total deposits increased 6% to
$1.6 billion, while total loans and leases increased 3% to $1.1 billion compared
to the prior year. At September 30, 2003, stockholders' equity totaled $190
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 $.4
million in the third quarter of 2002. There was also no provision for credit
losses for the first nine months of 2003 compared to a provision of $2.6 million
for the first nine months of 2002.
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.
DETAILED REVIEW OF FINANCIAL RESULTS
Comparing the third quarter of 2003 and 2002, net interest income decreased by
$1.1 million, or 5%, due primarily to a decline in the net interest margin to
3.73% in 2003 from 4.23% in 2002. However, noninterest income increased by $1.1
million, or 15%, over 2002. On a non-GAAP basis excluding investment gains,
which decreased by $.7 million, quarterly noninterest income increased $1.8
million, or 27%. 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 virtually doubled in the third quarter of
2003 over 2002. Also contributing to growth in noninterest income was trust
revenues, which posted a 16% gain over the prior year, insurance agency
commissions, which increased 41% over the prior year, income from bank owned
life insurance, which increased 76% and fees from sales of investment products,
which increased 21% over the third quarter of 2002. Noninterest expenses were
$16.9 million in 2003 compared to $15.8 million in 2002, a 7% percent increase.
Noninterest expenses in each quarter include the amortization of intangible
assets of $.7 million. The GAAP based efficiency ratio was 61.2% for the third
quarter of 2003 while the traditional, non-GAAP efficiency ratio was 54.8%.
Comparing the first nine months of 2003 and 2002, net interest income decreased
by $2.3 million, or 4%, due primarily to the margin compression resulting from a
decline in the net interest margin to 3.80% for the first nine months of 2003
from 4.26% for the same period in 2002. Noninterest income was $26.6 million for
the nine months ended September 30, 2003 versus $21.1 million for the same
period in 2002, an increase of $5.5 million, or 26%. On a non-GAAP basis,
noninterest income, excluding the effect of securities gains of $.7 million,
down $.4 million, and $1.1 million in income from the early termination of a
sublease, the increase in noninterest income was $4.7 million, or 24%. This
increase was due primarily to growth in mortgage banking revenues; income from
trust operations, insurance agency commissions and income from bank owned life
insurance. Noninterest expenses were $49.5 million in 2003 compared to $47.3
million in 2002, a 5% percent increase. Noninterest expenses in each nine-month
period include the amortization of intangible assets of $2.0 million. The GAAP
based efficiency ratio was 59.7% for the first nine months of 2003 while the
traditional, non-GAAP efficiency ratio was 54.5%, both slightly higher than the
first nine months of 2002.
Higher than expected earnings in the most recent quarter, due primarily to
stronger mortgage banking revenues, together with a better than expected net
interest margin, causes management to expect a higher range of diluted earnings
per share of $ 2.20 - $ 2.25 for the year 2003, compared to the earlier
expectation of $ 2.00 - $ 2.10 per diluted share. Earnings estimates are
inherently uncertain. Please see the information below regarding Forward-Looking
Statement, 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 Nine Months Ended
September 30, September 30,
--------------------------- % ---------------------------- %
2003 2002 Change 2003 2002 Change
- --------------------------------------------------------------------------------------------------------------------------------
PROFITABILITY FOR THE PERIOD:
Net interest income $ 18,866 $ 19,933 (5) $ 56,282 $ 58,591 (4)
Provision for credit losses 0 395 (100) 0 2,565 (100)
Noninterest income 8,751 7,615 15 26,558 21,098 26
Noninterest expenses 16,904 15,847 7 49,484 47,263 5
Income before income taxes 10,713 11,306 (5) 33,356 29,861 12
Net income 8,273 8,257 0 25,341 21,971 15
Return on average assets 1.38% 1.50% 1.45% 1.38%
Return on average equity 17.47% 19.64% 18.36% 18.54%
Net interest margin 3.73% 4.23% 3.80% 4.26%
Efficiency ratio - GAAP based * 61.21% 57.53% 59.73% 59.31%
Efficiency ratio - traditional * 54.75% 52.94% 54.52% 54.07%
PER SHARE DATA:
Basic net income $ 0.57 $ 0.56 2 $ 1.75 $ 1.51 16
Diluted net income 0.56 0.56 0 1.72 1.49 15
Dividends declared 0.19 0.17 12 0.55 0.51 8
Book value 13.15 11.91 10 13.15 11.91 10
Tangible book value 11.80 10.38 14 11.80 10.38 14
Average fully diluted shares 14,677,257 14,727,897 14,697,878 14,719,278
AT PERIOD-END:
Assets $ 2,382,587 $ 2,261,508 5 $ 2,382,587 $ 2,261,508 5
Deposits 1,558,220 1,465,147 6 1,558,220 1,465,147 6
Loans and leases 1,099,541 1,066,405 3 1,099,541 1,066,405 3
Securities 1,104,478 984,129 12 1,104,478 984,129 12
Stockholders' equity 190,350 172,887 10 190,350 172,887 10
CAPITAL AND CREDIT QUALITY RATIOS:
Average equity to average assets 7.88% 7.63% 7.88% 7.46%
Allowance for credit losses to
loans and leases 1.37% 1.43% 1.37% 1.43%
Nonperforming assets to total assets 0.14% 0.32% 0.14% 0.32%
Annualized net (charge-offs)
recoveries to average loans
and leases 0.00% 0.03% 0.00% 0.00%
* 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 Nine Months Ended
September 30, September 30,
------------------------- ------------------------
2003 2002 2003 2002
------- ------- ------- -------
Noninterest expenses-GAAP based $16,904 $15,847 $49,484 $47,263
Net interest income plus noninterest income-
GAAP based 27,617 27,548 82,840 79,689
Efficiency ratio-GAAP based 61.21% 57.53% 59.73% 59.31%
======= ======= ======= =======
Noninterest expenses-GAAP based $16,904 $15,847 $49,484 $47,263
Less non-GAAP adjustment:
Amortization of intangible assets 665 665 1,994 1,994
------- ------- ------- -------
Noninterest expenses-traditional ratio 16,239 15,182 47,490 45,269
Net interest income plus noninterest income-
GAAP based 27,617 27,548 82,840 79,689
Plus non-GAAP adjustment:
Tax-equivalency 2,148 1,922 6,003 5,061
Less non-GAAP adjustments:
Securities gains 106 791 657 1,021
Income from an early termination of
a sublease 0 0 1,077 0
------- ------- ------- -------
Net interest income plus noninterest
income - traditional ratio 29,659 28,679 87,109 83,729
Efficiency ratio - traditional 54.75% 52.94% 54.52% 54.07%
======= ======= ======= =======
Sandy Spring Bancorp, Inc. and Subsidiaries
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except per share data)
September 30, December 31,
---------------------------- -------------
2003 2002 2002
- ------------------------------------------------------------------------------------------------------------
ASSETS
Cash and due from banks $ 43,718 $ 39,475 $ 38,998
Federal funds sold 6,265 45,241 9,135
Interest-bearing deposits with banks 927 811 813
Residential mortgage loans held for sale 9,390 20,716 38,435
Investments available-for-sale (at fair value) 735,158 710,163 685,586
Investments held-to-maturity - fair value of $353,332
$263,464, and $346,862, respectively 347,953 254,154 340,860
Other equity securities 21,367 19,812 19,812
Total loans and leases 1,099,541 1,066,405 1,063,853
Less: allowance for credit losses (15,049) (15,220) (15,036)
----------- ----------- -----------
Net loans and leases 1,084,492 1,051,185 1,048,817
Premises and equipment, net 37,671 35,534 36,007
Accrued interest receivable 15,292 17,038 14,957
Goodwill 7,642 7,642 7,642
Other intangible assets, net 11,932 14,591 13,927
Other assets 60,780 45,146 52,415
----------- ----------- -----------
Total assets $ 2,382,587 $ 2,261,508 $ 2,307,404
=========== =========== ===========
LIABILITIES
Noninterest-bearing deposits $ 350,700 $ 320,841 $ 320,583
Interest-bearing deposits 1,207,520 1,144,306 1,171,629
----------- ----------- -----------
Total deposits 1,558,220 1,465,147 1,492,212
Short-term borrowings 495,551 459,325 488,214
Guaranteed preferred beneficial interests in
the Company's subordinated debentures 35,000 35,000 35,000
Other long-term borrowings 88,346 117,135 90,500
Accrued interest payable and other liabilities 15,120 12,014 22,786
----------- ----------- -----------
Total liabilities 2,192,237 2,088,621 2,128,712
STOCKHOLDERS' EQUITY
Common stock -- par value $1.00; shares authorized
50,000,000; shares issued and outstanding 14,474,374
14,516,829 and 14,536,094, respectively 14,474 14,517 14,536
Additional paid in capital 18,704 20,960 21,128
Retained earnings 149,976 126,479 132,607
Accumulated other comprehensive income 7,196 10,931 10,421
----------- ----------- -----------
Total stockholders' equity 190,350 172,887 178,692
----------- ----------- -----------
Total liabilities and stockholders' equity $ 2,382,587 $ 2,261,508 $ 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 Nine Months Ended
September 30, September 30,
---------------------- ----------------------
2003 2002 2003 2002
-------- --------- -------- --------
Interest income:
Interest and fees on loans and leases $ 15,883 $ 18,342 $ 48,754 $ 54,304
Interest on loans held for sale 422 249 993 576
Interest on deposits with banks 2 (2) 9 15
Interest and dividends on securities:
Taxable 7,998 9,378 24,610 28,546
Exempt from federal income taxes 3,558 2,870 10,509 7,867
Interest on federal funds sold 49 130 264 386
-------- -------- -------- --------
Total interest income 27,912 30,967 85,139 91,694
Interest expense:
Interest on deposits 3,230 4,893 10,891 15,213
Interest on short-term borrowings 4,298 4,095 13,419 11,725
Interest on long-term borrowings 1,518 2,046 4,547 6,165
-------- -------- -------- --------
Total interest expense 9,046 11,034 28,857 33,103
-------- -------- -------- --------
Net interest income 18,866 19,933 56,282 58,591
Provision for credit losses 0 395 0 2,565
-------- -------- -------- --------
Net interest income after provision for credit losses 18,866 19,538 56,282 56,026
Noninterest income:
Securities gains 106 791 657 1,021
Service charges on deposit accounts 2,027 1,917 6,048 5,748
Gains on sales of mortgage loans 1,906 1,000 5,084 2,479
Fees on sales of investment products 512 425 1,699 1,621
Trust department income 756 652 2,234 1,826
Insurance agency commissions 924 657 2,865 2,433
Income from bank owned life insurance 866 493 2,185 1,360
Income from an early termination of a sublease 0 0 1,077 0
Other income 1,654 1,680 4,709 4,610
-------- -------- -------- --------
Total noninterest income 8,751 7,615 26,558 21,098
Noninterest expenses:
Salaries and employee benefits 9,932 9,396 28,896 28,122
Occupancy expense of premises 1,839 1,369 4,956 4,233
Equipment expenses 1,101 949 3,241 2,714
Marketing 477 438 1,440 1,414
Outside data services 643 594 1,948 1,841
Amortization of intangible assets 665 665 1,994 1,994
Other expenses 2,247 2,436 7,009 6,945
-------- -------- -------- --------
Total noninterest expenses 16,904 15,847 49,484 47,263
-------- -------- -------- --------
Income before income taxes 10,713 11,306 33,356 29,861
Income tax expense 2,440 3,049 8,015 7,890
-------- -------- -------- --------
Net income $ 8,273 $ 8,257 $ 25,341 $ 21,971
======== ======== ======== ========
Basic net income per share $ 0.57 $ 0.56 $ 1.75 $ 1.51
Diluted net income per share 0.56 0.56 1.72 1.49
Dividends declared per share 0.19 0.17 0.55 0.51
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) Q3 Q2 Q1 Q4 Q3 Q2 Q1
- -----------------------------------------------------------------------------------------------------------------------------------
PROFITABILITY FOR THE QUARTER:
Tax-equivalent interest income $ 30,060 $ 29,800 $ 31,282 $ 32,887 $ 32,889 $ 32,703 $ 31,163
- -----------------------------------------------------------------------------------------------------------------------------------
Interest expense 9,046 9,700 10,111 10,797 11,034 10,950 11,119
- -----------------------------------------------------------------------------------------------------------------------------------
Tax-equivalent net interest income 21,014 20,100 21,171 22,090 21,855 21,753 20,044
- -----------------------------------------------------------------------------------------------------------------------------------
Tax-equivalent adjustment 2,148 1,809 2,046 1,859 1,922 1,670 1,469
- -----------------------------------------------------------------------------------------------------------------------------------
Provision for credit losses 0 0 0 300 395 985 1,185
- -----------------------------------------------------------------------------------------------------------------------------------
Noninterest income 8,751 10,032 7,775 8,631 7,615 6,685 6,798
- -----------------------------------------------------------------------------------------------------------------------------------
Noninterest expenses 16,904 16,605 15,975 16,698 15,847 16,118 15,298
- -----------------------------------------------------------------------------------------------------------------------------------
Income before income taxes 10,713 11,718 10,925 11,864 11,306 9,665 8,890
- -----------------------------------------------------------------------------------------------------------------------------------
Income tax expense 2,440 2,955 2,620 3,122 3,049 2,507 2,334
- -----------------------------------------------------------------------------------------------------------------------------------
Net Income 8,273 8,763 8,305 8,742 8,257 7,158 6,556
===================================================================================================================================
FINANCIAL RATIOS:
Return on average assets 1.38% 1.51% 1.46% 1.53% 1.50% 1.35% 1.29%
- -----------------------------------------------------------------------------------------------------------------------------------
Return on average equity 17.47% 19.03% 18.64% 19.89% 19.64% 18.45% 17.41%
- -----------------------------------------------------------------------------------------------------------------------------------
Net interest margin 3.73% 3.75% 3.94% 4.17% 4.23% 4.39% 4.18%
- -----------------------------------------------------------------------------------------------------------------------------------
Efficiency ratio - GAAP based * 61.21% 58.63% 59.39% 57.85% 57.53% 60.21% 60.29%
- -----------------------------------------------------------------------------------------------------------------------------------
Efficiency ratio - traditional * 54.75% 55.91% 52.91% 53.94% 52.94% 54.34% 54.99%
===================================================================================================================================
PER SHARE DATA:
Basic net income $ 0.57 $ 0.61 $ 0.57 $ 0.61 $ 0.56 $ 0.50 $ 0.45
- -----------------------------------------------------------------------------------------------------------------------------------
Diluted net income $ 0.56 $ 0.60 $ 0.56 $ 0.59 $ 0.56 $ 0.48 $ 0.45
- -----------------------------------------------------------------------------------------------------------------------------------
Dividends declared $ 0.19 $ 0.18 $ 0.18 $ 0.18 $ 0.17 $ 0.17 $ 0.17
- -----------------------------------------------------------------------------------------------------------------------------------
Book value $ 13.15 $ 13.09 $ 12.58 $ 12.29 $ 11.91 $ 11.28 $ 10.45
- -----------------------------------------------------------------------------------------------------------------------------------
Tangible book value $ 11.80 $ 11.69 $ 11.14 $ 10.81 $ 10.38 $ 9.70 $ 8.82
- -----------------------------------------------------------------------------------------------------------------------------------
Average fully diluted shares 14,677,257 14,676,404 14,743,976 14,729,882 14,727,897 14,724,774 14,709,011
===================================================================================================================================
NONINTEREST INCOME BREAKDOWN:
Securities gains (losses) $ 106 $ 543 $ 8 $ 995 $ 791 $ (3) $ 233
- -----------------------------------------------------------------------------------------------------------------------------------
Service charges on deposit accounts 2,027 2,037 1,984 2,091 1,917 1,953 1,878
- -----------------------------------------------------------------------------------------------------------------------------------
Gains on sales of mortgage loans 1,906 1,603 1,575 1,461 1,000 741 738
- -----------------------------------------------------------------------------------------------------------------------------------
Fees on sales of investment products 512 666 521 457 425 556 640
- -----------------------------------------------------------------------------------------------------------------------------------
Trust department income 756 758 720 671 652 605 569
- -----------------------------------------------------------------------------------------------------------------------------------
Insurance agency commissions 924 922 1,019 848 657 790 986
- -----------------------------------------------------------------------------------------------------------------------------------
Income from bank owned life insurance 866 710 609 516 493 432 435
- -----------------------------------------------------------------------------------------------------------------------------------
Income from an early termination of
a sublease 0 1,077 0 0 0 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
Other income 1,654 1,716 1,339 1,592 1,680 1,611 1,319
- -----------------------------------------------------------------------------------------------------------------------------------
Total 8,751 10,032 7,775 8,631 7,615 6,685 6,798
===================================================================================================================================
NONINTEREST EXPENSE BREAKDOWN:
Salaries and employee benefits $ 9,932 $ 9,514 $ 9,450 $ 10,449 $ 9,396 $ 9,430 $ 9,296
- -----------------------------------------------------------------------------------------------------------------------------------
Occupancy expense of premises 1,839 1,533 1,584 1,366 1,369 1,558 1,306
- -----------------------------------------------------------------------------------------------------------------------------------
Equipment expenses 1,101 1,099 1,041 1,096 949 956 809
- -----------------------------------------------------------------------------------------------------------------------------------
Marketing 477 509 454 493 438 574 402
- -----------------------------------------------------------------------------------------------------------------------------------
Outside data services 643 660 645 574 594 634 613
- -----------------------------------------------------------------------------------------------------------------------------------
* 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) Q3 Q2 Q1 Q4 Q3 Q2 Q1
- ------------------------------------------------------------------------------ ---------------------------------------------------
NONINTEREST EXPENSE BREAKDOWN (CONTINUED):
Amortization of intangible assets 665 $ 664 $ 665 665 665 664 $ 665
- -----------------------------------------------------------------------------------------------------------------------------------
Other expenses 2,247 2,626 2,136 2,055 2,436 2,302 2,207
- -----------------------------------------------------------------------------------------------------------------------------------
Total 16,904 16,605 15,975 16,698 15,847 16,118 15,298
===================================================================================================================================
BALANCE SHEETS AT QUARTER END:
Residential mortgage loans $ 313,873 $ 292,415 $ 276,001 $ 281,088 $ 278,954 $ 274,839 $ 267,691
- -----------------------------------------------------------------------------------------------------------------------------------
Residential construction loans 74,889 71,016 66,937 73,585 80,655 80,756 74,381
- -----------------------------------------------------------------------------------------------------------------------------------
Commercial mortgage loans 274,705 263,227 260,437 257,118 239,993 241,353 235,294
- -----------------------------------------------------------------------------------------------------------------------------------
Commercial construction loans 53,177 47,393 54,238 51,947 56,497 54,749 53,732
- -----------------------------------------------------------------------------------------------------------------------------------
Commercial loans and leases 150,520 161,772 160,344 166,949 171,174 167,541 158,614
- -----------------------------------------------------------------------------------------------------------------------------------
Consumer loans 232,377 233,865 232,359 233,166 239,132 238,426 229,878
- -----------------------------------------------------------------------------------------------------------------------------------
Total loans and leases 1,099,541 1,069,688 1,050,316 1,063,853 1,066,405 1,057,664 1,019,590
- -----------------------------------------------------------------------------------------------------------------------------------
Less: allowance for credit losses (15,049) (15,033) (15,023) (15,036) (15,220) (14,911) (13,877)
- -----------------------------------------------------------------------------------------------------------------------------------
Net loans and leases 1,084,492 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 7,642
- -----------------------------------------------------------------------------------------------------------------------------------
Other intangible assets, net 11,932 12,597 13,262 13,927 14,591 15,256 15,920
- -----------------------------------------------------------------------------------------------------------------------------------
Total assets 2,382,587 2,367,364 2,371,520 2,307,404 2,261,508 2,158,785 2,082,832
- -----------------------------------------------------------------------------------------------------------------------------------
Total deposits 1,558,220 1,590,144 1,555,513 1,492,212 1,465,147 1,409,853 1,393,367
- -----------------------------------------------------------------------------------------------------------------------------------
Total stockholders' equity 190,350 189,297 182,499 178,692 172,887 163,641 151,430
===================================================================================================================================
QUARTERLY AVERAGE BALANCE SHEETS:
Residential mortgage loans $ 342,648 $ 302,344 $ 304,494 $ 306,872 $ 291,703 $ 279,820 $ 272,145
- -----------------------------------------------------------------------------------------------------------------------------------
Residential construction loans 77,466 68,296 72,031 79,698 78,816 76,261 79,701
- -----------------------------------------------------------------------------------------------------------------------------------
Commercial mortgage loans 262,263 263,616 258,707 253,465 242,138 241,594 235,783
- -----------------------------------------------------------------------------------------------------------------------------------
Commercial construction loans 50,746 52,847 52,970 52,572 55,657 54,227 54,494
- -----------------------------------------------------------------------------------------------------------------------------------
Commercial loans and leases 157,277 162,149 163,216 167,319 166,540 160,745 149,170
- -----------------------------------------------------------------------------------------------------------------------------------
Consumer loans 232,891 229,085 231,770 234,243 240,174 231,585 221,083
- -----------------------------------------------------------------------------------------------------------------------------------
Total loans and leases 1,123,291 1,078,337 1,083,188 1,094,169 1,075,028 1,044,232 1,012,376
- -----------------------------------------------------------------------------------------------------------------------------------
Securities 1,084,348 1,058,878 1,039,112 987,663 943,083 910,235 882,497
- -----------------------------------------------------------------------------------------------------------------------------------
Total earning assets 2,229,467 2,177,451 2,158,817 2,125,714 2,051,202 1,987,313 1,926,617
- -----------------------------------------------------------------------------------------------------------------------------------
Total assets 2,383,783 2,330,589 2,305,834 2,269,918 2,186,028 2,119,776 2,064,136
- -----------------------------------------------------------------------------------------------------------------------------------
Total interest-bearing liabilities 1,812,412 1,801,472 1,799,132 1,769,910 1,719,174 1,683,225 1,637,363
- -----------------------------------------------------------------------------------------------------------------------------------
Noninterest-bearing demand deposits 355,119 322,431 299,638 307,585 284,915 269,658 260,575
- -----------------------------------------------------------------------------------------------------------------------------------
Total deposits 1,581,873 1,537,111 1,488,023 1,469,979 1,418,211 1,393,004 1,368,143
- -----------------------------------------------------------------------------------------------------------------------------------
Stockholders' equity 187,882 184,650 180,700 174,381 166,769 155,597 152,735
===================================================================================================================================
CAPITAL AND CREDIT QUALITY MEASURES:
Average equity to average assets 7.88% 7.92% 7.84% 7.68% 7.63% 7.34% 7.40%
- -----------------------------------------------------------------------------------------------------------------------------------
Credit loss allowance to loans and leases 1.37% 1.41% 1.43% 1.41% 1.43% 1.41% 1.36%
- -----------------------------------------------------------------------------------------------------------------------------------
Nonperforming assets to total assets 0.14% 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% 0.00% (0.18)% (0.03)% 0.02% 0.02%
===================================================================================================================================
MISCELLANEOUS DATA:
Net (charge-offs) recoveries $ 16 $ 10 $ (13) $ (484) $ (86) $ 49 $ 39
- -----------------------------------------------------------------------------------------------------------------------------------
Nonperforming assets:
Non-accrual loans and leases 564 479 567 588 6,109 5,730 6,039
- -----------------------------------------------------------------------------------------------------------------------------------
Loans and leases 90 days past due 2,612 900 1,381 2,157 1,022 1,761 1,872
- -----------------------------------------------------------------------------------------------------------------------------------
Restructured loans and leases 0 0 0 0 0 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
Other real estate owned, net 125 187 0 0 44 79 50
- -----------------------------------------------------------------------------------------------------------------------------------
Total nonperforming assets 3,301 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 September 30,
--------------------------------------------------------------------------------
2003 2002
---------------------------------------- -------------------------------------
AVERAGE ANNUALIZED YIELD/ Average Annualized Yield/
BALANCES INTEREST RATE Balance Interest Rate
----------- ----------- -------- ----------- ----------- -------
ASSETS
Residential mortgage loans $ 342,648 $ 18,702 5.46% $ 291,703 $ 20,071 6.88%
Residential construction loans 77,466 3,560 4.60 78,816 4,555 5.78
Commercial mortgage loans 262,263 18,294 6.98 242,138 18,772 7.75
Commercial construction loans 50,746 2,931 5.78 55,657 3,346 6.01
Commercial loans and leases 157,277 10,658 6.78 166,540 13,203 7.93
Consumer loans 232,891 10,968 4.71 240,174 14,002 5.83
----------- ----------- ----------- -----------
Total loans and leases 1,123,291 65,113 5.80 1,075,028 73,949 6.88
Securities 1,084,348 53,768 4.96 943,083 56,168 5.96
Interest-bearing deposits with banks 1,430 9 0.61 2,808 15 0.53
Federal funds sold 20,398 195 0.96 30,283 523 1.73
----------- ----------- ----------- -----------
TOTAL EARNING ASSETS 2,229,467 119,085 5.34% 2,051,202 130,655 6.37%
Less: allowance for credit losses (15,013) (15,103)
Cash and due from banks 34,026 32,657
Premises and equipment, net 38,098 34,964
Other assets 97,205 82,308
----------- -----------
Total assets $ 2,383,783 $ 2,186,028
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest-bearing demand deposits $ 206,759 $ 487 0.24% $ 175,767 $ 641 0.36%
Regular savings deposits 179,572 496 0.28 152,737 1,246 0.82
Money market savings deposits 407,480 1,878 0.46 377,949 4,701 1.24
Time deposits 432,942 10,096 2.33 426,843 12,825 3.00
----------- ----------- ----------- -----------
Total interest-bearing deposits 1,226,753 12,957 1.06 1,133,296 19,413 1.71
Borrowings 585,659 23,033 3.93 585,878 24,531 4.19
----------- ----------- ----------- -----------
TOTAL INTEREST-BEARING LIABILITIES 1,812,412 35,990 1.99 1,719,174 43,944 2.56
----------- ------ ----------- ------
Net interest income and spread $ 83,095 3.35% $ 86,711 3.81%
=========== ====== =========== ======
Noninterest-bearing demand deposits 355,119 284,915
Other liabilities 28,370 15,170
Stockholder's equity 187,882 166,769
----------- -----------
Total liabilities and stockholders' equity $ 2,383,783 $ 2,186,028
=========== ===========
Interest income/earning assets 5.34% 6.37%
Interest expense/earning assets 1.61 2.14
------ ------
Net interest margin 3.73% 4.23%
====== ======
Sandy Spring Bancorp, Inc. and Subsidiaries
CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES
(Dollars in thousands and tax-equivalent)
Nine Months Ended September 30,
--------------------------------------------------------------------------------
2003 2002
---------------------------------------- -------------------------------------
AVERAGE ANNUALIZED YIELD/ Average Annualized Yield/
BALANCES INTEREST RATE Balance Interest Rate
----------- ----------- -------- ----------- ----------- --------
ASSETS
Residential mortgage loans $ 316,635 $ 18,551 5.86% $ 282,711 $ 19,679 6.96%
Residential construction loans 72,617 3,659 5.04 78,256 4,448 5.68
Commercial mortgage loans 261,542 18,334 7.01 239,862 18,942 7.90
Commercial construction loans 52,179 3,055 5.86 54,797 3,270 5.97
Commercial loans and leases 160,859 11,368 7.07 158,882 12,971 8.16
Consumer loans 231,253 11,487 4.97 231,017 14,001 6.06
----------- ----------- ----------- -----------
Total loans and leases 1,095,085 66,454 6.07 1,045,525 73,311 7.01
Securities 1,060,939 54,979 5.18 912,161 55,109 6.04
Interest-bearing deposits with banks 1,329 12 0.91 1,685 19 1.13
Federal funds sold 31,443 352 1.12 30,880 516 1.67
----------- ----------- ----------- -----------
TOTAL EARNING ASSETS 2,188,796 121,797 5.56% 1,990,251 128,955 6.48%
Less: allowance for credit losses (15,023) (14,164)
Cash and due from banks 34,573 34,648
Premises and equipment, net 37,011 33,809
Other assets 94,979 79,235
----------- -----------
Total assets $ 2,340,336 $ 2,123,779
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest-bearing demand deposits $ 197,284 $ 483 0.24% $ 172,570 $ 524 0.30%
Regular savings deposits 168,708 517 0.31 140,477 1,319 0.94
Money market savings deposits 404,196 2,626 0.65 384,180 4,606 1.20
Time deposits 439,947 10,934 2.49 424,271 13,890 3.27
----------- ----------- ----------- -----------
Total interest-bearing deposits 1,210,135 14,560 1.20 1,121,498 20,339 1.81
Borrowings 594,308 23,961 4.03 558,723 23,864 4.27
----------- ----------- ----------- -----------
TOTAL INTEREST-BEARING LIABILITIES 1,804,443 38,521 2.13 1,680,221 44,203 2.63
----------- ---- ----------- ----
Net interest income and spread $ 83,276 3.43% $ 84,752 3.85%
=========== ==== =========== ====
Noninterest-bearing demand deposits 325,933 271,826
Other liabilities 25,455 13,262
Stockholder's equity 184,505 158,470
----------- -----------
Total liabilities and stockholders' equity $ 2,340,336 $ 2,123,779
=========== ===========
Interest income/earning assets 5.56% 6.48%
Interest expense/earning assets 1.76 2.22
---- ----
Net interest margin 3.80% 4.26%
==== ====