EXHIBIT 99
[GRAPHIC OMITTED] NEWS RELEASE
FOR IMMEDIATE RELEASE
LOWER INTEREST RATES AFFECT SANDY SPRING BANCORP
FIRST QUARTER RESULTS
OLNEY, MARYLAND, April 15, 2004 -- Sandy Spring Bancorp, (Nasdaq-SASR) the
parent company of Sandy Spring Bank, today announced net income for the first
quarter of 2004 of $7.3 million ($.50 per diluted share) compared to $8.3
million ($.56 per diluted share) for the first quarter of 2003, a 12% decrease.
"Our net interest margin remained at 3.82% during the first quarter of 2004 when
compared to the fourth quarter of 2003. The impact of continued low interest
rates during the quarter is evident in our earnings for the first quarter," said
Hunter R. Hollar, President and CEO of Sandy Spring Bancorp. "We reduced the
duration and size of our investment portfolio in the first quarter so that we
could better position our balance sheet to take advantage of higher interest
rates in the future. While this contributes to a lower margin now, we feel that
this approach will produce sustainable value and thus returns to our
shareholders over the long-term. The mortgage refinance market, and related
gains, which for many quarters tended to mitigate the negative effects of weaker
margins, slowed in the first quarter of 2004 as compared to 2003. Activity for
purchase money loans remains favorable, but the pace of refinancing has slowed.
Based on these factors, we have revised our earnings guidance for the remainder
of 2004."
"There was solid loan growth in residential construction, consumer equity credit
lines, commercial mortgage loans and commercial loans and leases over the first
quarter of 2003," said Hollar. "Deposit growth was good, and areas of
noninterest income were solid with trust fees up 5%, insurance agency fees up
10% and fees on the sales of investment products up 21%."
Return on average stockholders' equity was 15.00% for the first quarter of 2004,
compared to 18.76% for the prior year period. Return on average assets for the
first quarter of 2004 was 1.26%, compared to 1.46% for the first quarter of
2003.
Comparing March 31, 2004 balances to March 31, 2003, total assets remained at
$2.4 billion. Total loans and leases grew 14% to $1.2 billion, while investment
securities decreased 12% to $965 million. Total deposits increased 4% to $1.6
billion, short-term borrowings declined 22% to $382 million, and other long-term
borrowings increased 30%, to $115 million. During the same period, stockholders'
equity increased 10% to $200 million or 8.4% of total assets.
Due to continuing strong asset quality, there was no provision for credit losses
in the first quarter of 2004 or 2003.
The Company's management will host a conference call to discuss its first
quarter results today at 2:00 P.M. (ET). A live Web cast of the conference call
is available through the Investor Relations' section of the Sandy Spring Web
site at
www.sandyspringbank.com.
DETAILED REVIEW OF FINANCIAL RESULTS
Comparing the first quarter of 2004 to 2003, net interest income decreased 3%
due primarily to the lower interest rates on loans and investment securities and
lower investment securities balances, offset in part by the effects of loan
growth, reduced interest on deposits and borrowings and lower borrowing
balances. The net interest margin declined to 3.82% in 2004 from 3.95% in 2003.
Noninterest income decreased by $0.2 million or 3% versus 2003. Investment
gains, which are included in noninterest income, increased $0.2 million. Lower
levels of mortgage banking activity, following a sustained period of mortgage
loan refinancings, have resulted in a decline in gains on sale of mortgage
loans, which decreased 51% versus the prior year period. Offsetting some of the
decline in mortgage banking revenues were the increases in fees on sales of
investment products, insurance agency commissions and trust revenues.
Noninterest expenses were $16.8 million in the first quarter of 2004 compared to
$16.0 million in 2003, a 5% increase. Noninterest expenses include the
amortization of intangible assets of $0.5 million in 2004 compared to $0.7
million in the first quarter of 2003. The GAAP based efficiency ratio increased
to 64.0% for the first quarter while the traditional non-GAAP efficiency ratio
increased to 58.3%. The increases were primarily the result of the expense
growth combined with the effect of the net interest margin contraction and the
decrease in gains on sale of mortgage loans. Operating expenses increased
primarily due to higher compensation and benefits costs, attributable to a
larger staff and merit increases, together with increased occupancy and
equipment expenses from an expanded branch network.
While core growth in loans, deposits and noninterest income is occurring, lower
than anticipated interest rates year-to-date, management's actions to shorten
the duration of the investment portfolio and to reduce its size, together with
uncertainty regarding the level of mortgage banking refinance activity cause
management to lower earnings guidance for the year 2004 to a range of $1.90 to
$2.10 per diluted share. Earnings estimates are inherently uncertain. 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,
earnings expectations, and other expectations; estimates of risks and future
costs and benefits; assessments of probable loan and lease losses; assessments
of market risk; and statements of the ability to achieve financial and other
goals. These forward-looking statements are subject to significant uncertainties
because they are based upon or are affected by: management's estimates and
projections of future interest rates, market behavior, and other economic
conditions; future laws and regulations; and a variety of other matters which,
by their nature, are subject to significant uncertainties. Because of these
uncertainties, Sandy Spring Bancorp's actual future results may differ
materially from those indicated. In addition, the Company's past results of
operations do not necessarily indicate its future results.
Sandy Spring Bancorp, Inc. and Subsidiaries
FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share data)
Three Months Ended
March 31,
----------------------------- %
2004 2003 Change
- --------------------------------------------------------- -------------- -------------- ----------
PROFITABILITY FOR THE PERIOD:
Net interest income $18,626 $19,163 (3)
Provision for credit losses 0 0 0
Noninterest income 7,559 7,757 (3)
Noninterest expenses 16,770 15,957 5
Income before income taxes 9,415 10,963 (14)
Net income 7,301 8,328 (12)
Return on average assets 1.26% 1.46%
Return on average equity 15.00% 18.76%
Net interest margin 3.82% 3.95%
Efficiency ratio - GAAP based * 64.04% 59.28%
Efficiency ratio - traditional * 58.32% 52.81%
PER SHARE DATA:
Basic net income $0.50 $0.57 (12)
Diluted net income 0.50 0.56 (11)
Dividends declared 0.19 0.18 6
Book value 13.76 12.54 10
Tangible book value 12.48 11.10 12
Average fully diluted shares 14,725,261 14,743,976
AT PERIOD-END:
Assets $2,371,572 $2,372,602 0
Deposits 1,618,591 1,555,513 4
Loans and leases 1,202,229 1,050,316 14
Securities 965,492 1,099,856 (12)
Stockholders' equity 199,615 181,854 10
CAPITAL AND CREDIT QUALITY RATIOS:
Average equity to average assets 8.40% 7.81%
Allowance for credit losses to loans
and leases 1.24% 1.43%
Nonperforming assets to total assets 0.14% 0.08%
Annualized net charge-offs to average
loans and leases 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 securities gains from
noninterest income; and adds the tax-equivalent adjustment to net interest
income. See the Reconciliation Table included with these Financial Highlights.
Certain reclassifications and restatements of information previously reported
have been made to conform with current presentation.
Sandy Spring Bancorp, Inc. and Subsidiaries
RECONCILIATION OF GAAP-BASED AND TRADITIONAL EFFICIENCY RATIOS
(In thousands, except per share data)
Three Months Ended
March 31,
----------------------------------------
2004 2003
------------------ ------------------
Noninterest expenses-GAAP based $16,770 $15,957
Net interest income plus noninterest income-
GAAP based 26,185 26,920
Efficiency ratio-GAAP based 64.04% 59.28%
================== ==================
Noninterest expenses-GAAP based $16,770 $15,957
Less non-GAAP adjustment:
Amortization of intangible assets 486 665
------------------ ------------------
Noninterest expenses-traditional ratio 16,284 15,292
Net interest income plus noninterest income-
GAAP based 26,185 26,920
Plus non-GAAP adjustment:
Tax-equivalency 1,965 2,046
Less non-GAAP adjustments:
Securities gains 228 8
------------------ ------------------
Net interest income plus noninterest
income - traditional ratio 27,922 28,958
Efficiency ratio - traditional 58.32% 52.81%
================== ==================
Sandy Spring Bancorp, Inc. and Subsidiaries
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except per share data)
March 31 December 31
--------------------------------------- ------------------
2004 2003 2003
- --------------------------------------------------------------------------------------------------------- ------------------
ASSETS
Cash and due from banks $43,338 $49,066 $38,397
Federal funds sold 20,942 23,356 10,670
Interest-bearing deposits with banks 708 837 724
Residential mortgage loans held for sale 19,896 28,587 12,209
Investments available-for-sale (at fair value) 636,739 751,030 639,460
Investments held-to-maturity - fair value of $318,984,
$333,505 and $344,814, respectively 308,901 327,589 337,634
Other equity securities 19,852 21,237 21,111
Total loans and leases 1,202,229 1,050,316 1,153,428
Less: allowance for credit losses (14,875) (15,023) (14,880)
----------------- ----------------- ------------------
Net loans and leases 1,187,354 1,035,293 1,138,548
Premises and equipment, net 39,216 36,256 37,679
Accrued interest receivable 12,537 19,372 13,661
Goodwill 7,642 7,642 7,642
Other intangible assets, net 10,959 13,262 11,446
Other assets 63,488 59,075 65,243
----------------- ----------------- ------------------
Total assets $2,371,572 $2,372,602 $2,334,424
================= ================= ==================
LIABILITIES
Noninterest-bearing deposits $402,759 $345,217 $368,319
Interest-bearing deposits 1,215,832 1,210,296 1,193,511
----------------- ----------------- ------------------
Total deposits 1,618,591 1,555,513 1,561,830
Short-term borrowings 382,367 489,210 413,223
Subordinated debentures 35,000 35,000 35,000
Other long-term borrowings 114,971 88,521 115,158
Accrued interest payable and other liabilities 21,028 22,504 15,764
----------------- ----------------- ------------------
Total liabilities 2,171,957 2,190,748 2,140,975
STOCKHOLDERS' EQUITY
Common stock -- par value $1.00; shares authorized
50,000,000; shares issued and outstanding 14,509,706,
14,503,157 and 14,495,613, respectively 14,510 14,503 14,496
Additional paid in capital 19,293 19,880 18,970
Retained earnings 157,825 137,648 153,280
Accumulated other comprehensive income 7,987 9,823 6,703
----------------- ----------------- ------------------
Total stockholders' equity 199,615 181,854 193,449
----------------- ----------------- ------------------
Total liabilities and stockholders' equity $2,371,572 $2,372,602 $2,334,424
================= ================= ==================
Certain reclassifications and restatements of information previously reported
have been made to conform with current presentation.
Sandy Spring Bancorp, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
Three Months Ended
March 31,
-----------------------------------------
2004 2003
------------------- -------------------
Interest income:
Interest and fees on loans and leases $16,456 $16,619
Interest on loans held for sale 138 308
Interest on deposits with banks 3 3
Interest and dividends on securities:
Taxable 6,556 8,732
Exempt from federal income taxes 3,587 3,468
Interest on federal funds sold 59 106
------------------- -------------------
Total interest income 26,799 29,236
Interest expense:
Interest on deposits 2,730 3,933
Interest on short-term borrowings 3,751 4,630
Interest on long-term borrowings 1,692 1,510
------------------- -------------------
Total interest expense 8,173 10,073
------------------- -------------------
Net interest income 18,626 19,163
Provision for credit losses 0 0
------------------- -------------------
Net interest income after provision for credit losses 18,626 19,163
Noninterest income:
Securities gains 228 8
Service charges on deposit accounts 1,868 1,984
Gains on sales of mortgage loans 769 1,575
Fees on sales of investment products 629 521
Trust department income 754 720
Insurance agency commissions 1,121 1,019
Income from bank owned life insurance 630 609
Visa check fees 424 425
Other income 1,136 896
------------------- -------------------
Total noninterest income 7,559 7,757
Noninterest expenses:
Salaries and employee benefits 9,933 9,450
Occupancy expense of premises 1,628 1,584
Equipment expenses 1,190 1,041
Marketing 513 454
Outside data services 721 645
Amortization of intangible assets 486 665
Other expenses 2,299 2,118
------------------- -------------------
Total noninterest expenses 16,770 15,957
------------------- -------------------
Income before income taxes 9,415 10,963
Income tax expense 2,114 2,635
------------------- -------------------
Net income $7,301 $8,328
=================== ===================
Basic net income per share $0.50 $0.57
Diluted net income per share 0.50 0.56
Dividends declared per share 0.19 0.18
Certain reclassifications and restatements of information previously reported
have been made to conform with current presentation.
Sandy Spring Bancorp, Inc. and Subsidiaries 2004 2003
HISTORICAL TRENDS IN QUARTERLY FINANCIAL DATA ----------- --------------------------------------------------
(Dollars in thousands, except per share data) Q1 Q4 Q3 Q2 Q1
- -----------------------------------------------------------------------------------------------------------------------
PROFITABILITY FOR THE QUARTER:
Tax-equivalent interest income $28,764 $29,562 $30,060 $29,800 $31,282
- -----------------------------------------------------------------------------------------------------------------------
Interest expense 8,173 8,478 9,137 9,744 10,073
- -----------------------------------------------------------------------------------------------------------------------
Tax-equivalent net interest income 20,591 21,084 20,923 20,056 21,209
- -----------------------------------------------------------------------------------------------------------------------
Tax-equivalent adjustment 1,965 2,234 2,148 1,809 2,046
- -----------------------------------------------------------------------------------------------------------------------
Provision for credit losses 0 0 0 0 0
- -----------------------------------------------------------------------------------------------------------------------
Noninterest income 7,559 7,178 8,751 10,032 7,757
- -----------------------------------------------------------------------------------------------------------------------
Noninterest expenses 16,770 17,742 16,904 16,605 15,957
- -----------------------------------------------------------------------------------------------------------------------
Income before income taxes 9,415 8,286 10,622 11,674 10,963
- -----------------------------------------------------------------------------------------------------------------------
Income tax expense 2,114 1,502 2,404 2,938 2,635
- -----------------------------------------------------------------------------------------------------------------------
Net Income 7,301 6,784 8,218 8,736 8,328
=======================================================================================================================
FINANCIAL RATIOS:
Return on average assets 1.26% 1.14% 1.37% 1.50% 1.46%
- -----------------------------------------------------------------------------------------------------------------------
Return on average equity 15.00% 14.16% 17.42% 19.04% 18.76%
- -----------------------------------------------------------------------------------------------------------------------
Net interest margin 3.82% 3.82% 3.71% 3.74% 3.95%
- -----------------------------------------------------------------------------------------------------------------------
Efficiency ratio - GAAP based * 64.04% 68.17% 61.41% 58.72% 59.28%
- -----------------------------------------------------------------------------------------------------------------------
Efficiency ratio - traditional * 58.32% 61.80% 54.92% 56.00% 52.81%
=======================================================================================================================
PER SHARE DATA:
Basic net income $0.50 $0.46 $0.57 $0.61 $0.57
- -----------------------------------------------------------------------------------------------------------------------
Diluted net income $0.50 $0.46 $0.56 $0.60 $0.56
- -----------------------------------------------------------------------------------------------------------------------
Dividends declared $0.19 $0.19 $0.19 $0.18 $0.18
- -----------------------------------------------------------------------------------------------------------------------
Book value $13.76 $13.35 $13.10 $13.04 $12.54
- -----------------------------------------------------------------------------------------------------------------------
Tangible book value $12.48 $12.03 $11.75 $11.64 $11.10
- -----------------------------------------------------------------------------------------------------------------------
Average fully diluted shares 14,725,261 14,729,513 14,677,257 14,676,404 14,743,976
=======================================================================================================================
NONINTEREST INCOME BREAKDOWN:
Securities gains (losses) $228 $339 $106 $543 $8
- -----------------------------------------------------------------------------------------------------------------------
Service charges on deposit accounts 1,868 1,984 2,027 2,037 1,984
- -----------------------------------------------------------------------------------------------------------------------
Gains on sales of mortgage loans 769 639 1,906 1,603 1,575
- -----------------------------------------------------------------------------------------------------------------------
Fees on sales of investment products 629 512 512 666 521
- -----------------------------------------------------------------------------------------------------------------------
Trust department income 754 721 756 758 720
- -----------------------------------------------------------------------------------------------------------------------
Insurance agency commissions 1,121 876 924 922 1,019
- -----------------------------------------------------------------------------------------------------------------------
Income from bank owned life insurance 630 561 866 710 609
- -----------------------------------------------------------------------------------------------------------------------
Income from early termination of a sublease 0 0 0 1,077 0
- -----------------------------------------------------------------------------------------------------------------------
Visa check fees 424 439 434 494 425
- -----------------------------------------------------------------------------------------------------------------------
Other income 1,136 1,107 1,220 1,222 896
- -----------------------------------------------------------------------------------------------------------------------
Total 7,559 7,178 8,751 10,032 7,757
=======================================================================================================================
NONINTEREST EXPENSE BREAKDOWN:
Salaries and employee benefits $9,933 $9,188 $9,932 $9,514 $9,450
- -----------------------------------------------------------------------------------------------------------------------
Occupancy expense of premises 1,628 2,105 1,839 1,533 1,584
- -----------------------------------------------------------------------------------------------------------------------
Equipment expenses 1,190 1,179 1,101 1,099 1,041
- -----------------------------------------------------------------------------------------------------------------------
Marketing 513 1,060 477 509 454
- -----------------------------------------------------------------------------------------------------------------------
Outside data services 721 671 643 660 645
- -----------------------------------------------------------------------------------------------------------------------
* 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 2004 2003
HISTORICAL TRENDS IN QUARTERLY FINANCIAL DATA ----------- --------------------------------------------------
(Dollars in thousands, except per share data) Q1 Q4 Q3 Q2 Q1
NONINTEREST EXPENSE BREAKDOWN (CONTINUED):
Amortization of intangible assets $486 $486 $665 $664 $665
- ---------------------------------------------------------------------------------------------------------------------
Other expenses 2,299 3,053 2,247 2,626 2,118
- ---------------------------------------------------------------------------------------------------------------------
Total 16,770 17,742 16,904 16,605 15,957
=====================================================================================================================
BALANCE SHEETS AT QUARTER END:
Residential mortgage loans $337,850 $331,129 $313,873 $292,415 $276,001
- ---------------------------------------------------------------------------------------------------------------------
Residential construction loans 103,292 88,500 74,889 71,016 66,937
- ---------------------------------------------------------------------------------------------------------------------
Commercial mortgage loans 322,754 323,099 310,502 299,621 297,428
- ---------------------------------------------------------------------------------------------------------------------
Commercial construction loans 52,162 51,518 55,337 53,626 61,434
- ---------------------------------------------------------------------------------------------------------------------
Commercial loans and leases 125,527 116,322 112,563 119,145 116,157
- ---------------------------------------------------------------------------------------------------------------------
Consumer loans 260,644 242,860 232,377 233,865 232,359
- ---------------------------------------------------------------------------------------------------------------------
Total loans and leases 1,202,229 1,153,428 1,099,541 1,069,688 1,050,316
- ---------------------------------------------------------------------------------------------------------------------
Less: allowance for credit losses (14,875) (14,880) (15,049) (15,033) (15,023)
- ---------------------------------------------------------------------------------------------------------------------
Net loans and leases 1,187,354 1,138,548 1,084,492 1,054,655 1,035,293
- ---------------------------------------------------------------------------------------------------------------------
Goodwill 7,642 7,642 7,642 7,642 7,642
- ---------------------------------------------------------------------------------------------------------------------
Other intangible assets, net 10,959 11,446 11,932 12,597 13,262
- ---------------------------------------------------------------------------------------------------------------------
Total assets 2,371,572 2,334,424 2,383,669 2,368,446 2,372,602
- ---------------------------------------------------------------------------------------------------------------------
Total deposits 1,618,591 1,561,830 1,558,220 1,590,144 1,555,513
- ---------------------------------------------------------------------------------------------------------------------
Total stockholders' equity 199,615 193,449 189,623 188,625 181,854
=====================================================================================================================
QUARTERLY AVERAGE BALANCE SHEETS:
Residential mortgage loans $346,545 $331,024 $342,648 $302,344 $304,494
- ---------------------------------------------------------------------------------------------------------------------
Residential construction loans 93,722 81,046 77,466 68,296 72,031
- ---------------------------------------------------------------------------------------------------------------------
Commercial mortgage loans 316,768 315,603 298,359 300,309 295,728
- ---------------------------------------------------------------------------------------------------------------------
Commercial construction loans 51,519 53,403 54,942 59,561 56,568
- ---------------------------------------------------------------------------------------------------------------------
Commercial loans and leases 127,327 109,037 116,985 118,742 122,597
- ---------------------------------------------------------------------------------------------------------------------
Consumer loans 251,411 237,478 232,891 229,085 231,770
- ---------------------------------------------------------------------------------------------------------------------
Total loans and leases 1,187,292 1,127,591 1,123,291 1,078,337 1,083,188
- ---------------------------------------------------------------------------------------------------------------------
Securities 954,822 1,055,558 1,084,348 1,058,878 1,039,112
- ---------------------------------------------------------------------------------------------------------------------
Total earning assets 2,167,641 2,201,368 2,229,467 2,177,451 2,158,817
- ---------------------------------------------------------------------------------------------------------------------
Total assets 2,328,985 2,357,816 2,383,783 2,330,589 2,305,834
- ---------------------------------------------------------------------------------------------------------------------
Total interest-bearing liabilities 1,751,225 1,797,037 1,812,412 1,801,472 1,799,132
- ---------------------------------------------------------------------------------------------------------------------
Noninterest-bearing demand deposits 360,341 351,761 355,119 322,431 299,638
- ---------------------------------------------------------------------------------------------------------------------
Total deposits 1,561,666 1,556,965 1,581,873 1,537,111 1,488,023
- ---------------------------------------------------------------------------------------------------------------------
Stockholders' equity 195,730 190,063 187,183 183,992 180,044
=====================================================================================================================
CAPITAL AND CREDIT QUALITY MEASURES:
Average equity to average assets 8.40% 8.06% 7.85% 7.89% 7.81%
- ---------------------------------------------------------------------------------------------------------------------
Credit loss allowance to loans and leases 1.24% 1.29% 1.37% 1.41% 1.43%
- ---------------------------------------------------------------------------------------------------------------------
Nonperforming assets to total assets 0.14% 0.13% 0.14% 0.07% 0.08%
- ---------------------------------------------------------------------------------------------------------------------
Annualized net (charge-offs) recoveries to
average loans and leases 0.00% (0.06)% 0.00% 0.00% 0.00%
=====================================================================================================================
MISCELLANEOUS DATA:
Net (charge-offs) recoveries ($5) ($169) $16 $10 ($13)
- ---------------------------------------------------------------------------------------------------------------------
Nonperforming assets:
Non-accrual loans and leases 802 522 564 479 567
- ---------------------------------------------------------------------------------------------------------------------
Loans and leases 90 days past due 2,492 2,333 2,612 900 1,381
- ---------------------------------------------------------------------------------------------------------------------
Restructured loans and leases 0 0 0 0 0
- ---------------------------------------------------------------------------------------------------------------------
Other real estate owned, net 77 77 125 187 0
- ---------------------------------------------------------------------------------------------------------------------
Total nonperforming assets 3,371 2,932 3,301 1,566 1,948
=====================================================================================================================
Sandy Spring Bancorp, Inc. and Subsidiaries
CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES
(Dollars in thousands and tax-equivalent)
Three Months Ended March 31,
--------------------------------------------------------------------------------
2004 2003
-------------------------------------- --------------------------------------
AVERAGE ANNUALIZED YIELD/ Average Annualized Yield/
BALANCES INTEREST RATE Balance Interest Rate
------------- ------------- ------- ------------- ----------- -------
ASSETS
Residential mortgage loans $346,545 $18,831 5.43 % $304,494 $18,722 6.15 %
Residential construction loans 93,722 4,303 4.59 72,031 3,882 5.39
Commercial mortgage loans 316,768 20,544 6.49 295,728 21,132 7.15
Commercial construction loans 51,519 2,956 5.74 56,568 3,474 6.14
Commercial loans and leases 127,327 8,242 6.47 122,597 8,962 7.31
Consumer loans 251,411 11,664 4.64 231,770 12,180 5.26
------------- ------------- ------------- -----------
Total loans and leases 1,187,292 66,540 5.60 1,083,188 68,352 6.31
Securities 954,822 48,528 5.08 1,039,112 57,038 5.49
Interest-bearing deposits with banks 1,000 10 1.00 1,244 13 1.05
Federal funds sold 24,527 235 0.96 35,273 424 1.20
------------- ------------- ------------- -----------
TOTAL EARNING ASSETS 2,167,641 115,313 5.32 % 2,158,817 125,827 5.83 %
Less: allowance for credit losses (14,889) (15,038)
Cash and due from banks 39,580 34,595
Premises and equipment, net 38,699 36,266
Other assets 97,954 91,194
------------- -------------
Total assets $2,328,985 $2,305,834
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest-bearing demand deposits $223,986 $614 0.27 % $186,114 $517 0.28 %
Regular savings deposits 195,286 661 0.34 157,446 590 0.37
Money market savings deposits 375,140 1,987 0.53 403,604 3,118 0.77
Time deposits 406,913 7,716 1.90 441,221 11,724 2.66
------------- ------------- ------------- -----------
Total interest-bearing deposits 1,201,325 10,978 0.91 1,188,385 15,949 1.34
Borrowings 549,900 21,563 3.92 610,747 24,596 4.03
------------- ------------- ------------- -----------
TOTAL INTEREST-BEARING LIABILITIES 1,751,225 32,541 1.86 1,799,132 40,545 2.25
------------- ------- ----------- -------
Net interest income and spread $82,772 3.46 % $85,282 3.58 %
============= ======= =========== =======
Noninterest-bearing demand deposits 360,341 299,638
Other liabilities 21,689 27,020
Stockholder's equity 195,730 180,044
------------- -------------
Total liabilities and stockholders' equity $2,328,985 $2,305,834
============= =============
Interest income/earning assets 5.32 % 5.83 %
Interest expense/earning assets 1.50 1.88
------- -------
Net interest margin 3.82 % 3.95 %
======= =======
*Interest income includes the effects of annualized taxable-equivalent
adjustments (reduced by the nondeductible portion of interest expense) using the
appropriate marginal federal income tax rate of 35.00% and, where applicable,
the marginal state income tax rate of 7.00% (or a combined marginal federal and
state rate of 39.55%), to increase tax-exempt interest income to a
taxable-equivalent basis. The annualized taxable-equivalent adjustment amounts
utilized in the above table to compute yields aggregated to $7,860,000 in 2004
and $8,185,000 in 2003.