Exhibit 99
[LOGO] NEWS RELEASE
FOR IMMEDIATE RELEASE
SANDY SPRING BANCORP REPORTS
FOURTH QUARTER AND FULL YEAR RESULTS
OLNEY, MARYLAND, January 20, 2005 -- Sandy Spring Bancorp, (Nasdaq-SASR) the
parent company of Sandy Spring Bank, today announced net income for the year
ended December 31, 2004 of $14.4 million ($0.98 per diluted share) compared to
$32.1 million ($2.18 per diluted share) for the prior year. The Company
recognized a net loss for the fourth quarter of 2004 of $5.7 million ($0.39 per
diluted share) compared to net income of $6.8 million ($0.46 per diluted share)
for the fourth quarter of 2003.
"Earnings were primarily affected by the prepayment penalties related to the
payoff of $195 million in FHLB advances and the concurrent sale of the same
amount of securities which together resulted in an $18.4 million reduction in
pretax income," according to Hunter R. Hollar, President and Chief Executive
Officer. "As we announced in mid-November, we made this decision after careful
analysis of both recent interest rate trends and our overall risk position. This
is consistent with our focus on managing our core banking business to provide
longer-term earnings growth and increased shareholder value." In addition, the
Company recognized in the fourth quarter of 2004 a pretax charge of $1.3 million
relating to the write down of goodwill associated with its investment in its
leasing subsidiary, The Equipment Leasing Company.
"The fundamentals of our balance sheet continue to be strong, loan and deposit
growth accelerated during 2004, especially in the fourth quarter as the local
economy continued to improve, and demand from our small business customers was
robust. Loan quality is excellent and we have been executing well on a variety
of initiatives to control costs and boost efficiency in a number of key areas,"
said Hollar.
For the year ended December 31, 2004, return on average stockholders' equity was
7.27% compared to 17.29% for the prior year. Return on average assets for the
year ended December 31, 2004 was 0.60% compared to 1.37% for the year ended
December 31, 2003.
Return on average stockholders' equity was a loss of 11.45% for the fourth
quarter of 2004, compared to a return of 14.16% for the fourth quarter of 2003.
Return on average assets for the fourth quarter of 2004 was a loss of 0.94%,
compared to a return of 1.14% for the fourth quarter of 2003.
Comparing December 31, 2004 balances to December 31, 2003, total assets remained
virtually the same at $2.3 billion. Total deposits increased 11% to $1.7
billion, while total loans and leases increased 25% to $1.4 billion compared to
the prior year. At December 31, 2004, stockholders' equity totaled $195 million,
and increased to 8.45% of total assets from 8.29% at December 31, 2003.
Due to continuing strong asset quality, there was no provision for credit losses
in the fourth quarter of 2004 or 2003 as well as for the years ended December
31, 2004 or 2003. Net credit losses amounted to just $226,000 for the full year
2004 and the allowance for credit losses represented coverage of 8.2 times
non-performing loans at December 31, 2004.
The Company's management will host a conference call to discuss its fourth
quarter and full year 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 fourth quarter of 2004 and 2003, net interest income increased by
$0.9 million, or 5%, due primarily to an increase in average interest earning
assets. The net interest margin increased to 3.83% in 2004 from 3.82% in 2003
due primarily to loan growth and in part to the early payoff of FHLB advances
mentioned earlier.
Noninterest income increased by $0.4 million, or 5% in the fourth quarter 2004
as compared to 2003. While the rise in interest rates during 2004 has resulted
in a significant decline in gain on sale of mortgage loans for the year, such
gains increased 21% in the fourth quarter of 2004 versus 2003 due primarily to a
slight increase in rates during the fourth quarter of 2003. In addition, fees
from the sale of investment products increased 37%, insurance revenues increased
19% and Visa(R) check fees increased 22% reflecting a growing volume of
electronic checking transactions. A decline of 7% in service charges on deposit
accounts due to lower commercial account fees and return check charges, and a
$0.3 million, or 81% decrease in securities gains partially offset the increases
in other noninterest income.
Noninterest expenses were $39.8 million in the fourth quarter of 2004 compared
to $17.7 million in 2003, an increase of $22.1 million or 125%, due primarily to
expenses of $18.4 million related to the prepayment of FHLB advances and the
write down of $1.3 million of goodwill associated with the Company's investment
in its leasing subsidiary during the quarter. Excluding these transactions,
noninterest expenses increased $2.4 million or 14%. This increase was the result
of increases in salaries and benefits due to a larger staff, severance expenses
totaling $0.8 million, and higher incentive compensation; increased equipment
expenses, due mainly to higher software costs; and increased other expenses due
primarily to out-of-pocket Sarbanes-Oxley Act compliance costs totaling $0.7
million, and amortization of debt issuance costs of $0.5 million. These
increases were partially offset by a decrease in marketing costs associated with
a significant advertising campaign in 2003.
The Company recorded a $6.8 million tax benefit in the fourth quarter of 2004,
compared to a $1.5 million tax expense in 2003. The change results mainly from
the fourth quarter 2004 net pre-tax loss of $12.5 million.
Comparing the year ended December 31, 2004 and 2003, net interest income
decreased by $0.4 million, or 1%, due primarily to a decline in the net interest
margin to 3.69% for the year 2004 from 3.80% for the year 2003. Noninterest
income was $30.8 million for the year ended December 31, 2004 versus $33.7
million for the year ended December 31, 2003, a decrease of $2.9 million, or 9%.
Excluding $1.1 million in income from the early termination of a sublease in
2003, noninterest income decreased $1.8 million, or 6%. This decrease was due
primarily to decreases of 43% in mortgage banking revenues and 7% in service
charges on deposits which were somewhat offset by increases of 13% in income
from trust operations, 11% in insurance agency revenues and 12% in fees from
sales of investment products. Noninterest expenses were $92.7 million in 2004
compared to $67.2 million in 2003, a 38% percent increase. This increase was
primarily due to expenses of $18.4 million related to the prepayment of FHLB
advances and the write down of $1.3 million of goodwill associated with the
Company's investment in its leasing subsidiary. Excluding these transactions,
noninterest expenses increased $5.8 million or 9%. This increase was due
primarily to increases in salaries and benefits, which include the one-time
severance costs, equipment expenses and other expenses, which include
Sarbanes-Oxley Act compliance costs and the amortization of debt issuance costs,
which were partially offset by a decrease in marketing expenses. Pre-tax income
for the year decreased by $28.9 million, or 69%, from 2003. After a net tax
benefit for the year of $1.7 million, compared to income tax expense of $9.5
million for 2003, 2004 net income declined $17.7 million, or 55%, to $14.4
million.
ABOUT SANDY SPRING BANCORP/SANDY SPRING BANK
With $2.3 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 29
community offices and 44 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
Philip J. Mantua, Executive V.P. & Chief Financial Officer
Sandy Spring Bancorp
17801 Georgia Avenue
Olney, Maryland 20832
1-800-399-5919
E-mail: HHollar@sandyspringbank.com
PMantua@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 of future
costs and benefits; assessments of probable loan and lease losses; assessments
of market risk; and statements of the ability to achieve financial and other
goals. 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 Twelve Months Ended
December 31, December 31,
----------------------------- % ------------------------------ %
2004 2003 Change 2004 2003 Change
- --------------------------------------------------------------------------------------------------------------------- ----------
PROFITABILITY FOR THE PERIOD:
Net interest income $19,765 $18,850 5 $74,622 $75,035 (1)
Provision for credit losses 0 0 0 0 0 0
Noninterest income 7,549 7,178 5 30,769 33,736 (9)
Noninterest expenses 39,837 17,742 125 92,703 67,226 38
Income before income taxes (12,523) 8,286 (251) 12,688 41,545 (69)
Net income (5,744) 6,784 (185) 14,367 32,066 (55)
Return on average assets (0.94)% 1.14% 0.60% 1.37%
Return on average equity (11.45)% 14.16% 7.27% 17.29%
Net interest margin 3.83% 3.82% 3.69% 3.80%
Efficiency ratio - GAAP based * 145.85% 68.17% 87.96% 61.81%
Efficiency ratio - traditional * 67.19% 61.80% 62.94% 56.33%
PER SHARE DATA:
Basic net income ($0.40) $0.46 (187) $0.99 $2.21 (55)
Diluted net income (0.39) 0.46 (185) 0.98 2.18 (55)
Dividends declared 0.20 0.19 5 0.78 0.74 5
Book value 13.34 13.35 0 13.34 13.35 0
Tangible book value 12.16 12.03 1 12.16 12.03 1
Average fully diluted shares 14,720,013 14,729,513 14,709,440 14,708,269
AT PERIOD-END:
Assets $2,309,343 $2,334,424 (1) $2,309,343 $2,334,424 (1)
Deposits 1,732,501 1,561,830 11 1,732,501 1,561,830 11
Loans and leases 1,445,525 1,153,428 25 1,445,525 1,153,428 25
Securities 666,108 998,205 (33) 666,108 998,205 (33)
Stockholders' equity 195,083 193,449 1 195,083 193,449 1
CAPITAL AND CREDIT QUALITY RATIOS:
Average equity to average assets 8.18% 8.06% 8.21% 7.91%
Allowance for credit losses to loans
and leases 1.01% 1.29% 1.01% 1.29%
Nonperforming assets to total assets 0.08% 0.13% 0.08% 0.13%
Annualized net charge-offs to average
loans and leases 0.04% 0.06% 0.02% 0.01%
* 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, goodwill impairment loss and FHLB prepayment penalties
(resulting from the elimation of the company's leverage program in 2004) 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 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 Twelve Months Ended
December 31, December 31,
------------------------------------------ --------------------------------
2004 2003 2004 2003
-------------------- -------------------- --------------- ---------------
Noninterest expenses-GAAP based $39,837 $17,742 $92,703 $67,226
Net interest income plus noninterest income-
GAAP based 27,314 26,028 105,391 108,771
Efficiency ratio-GAAP based 145.85% 68.17% 87.96% 61.81%
==================== ==================== =============== ===============
Noninterest expenses-GAAP based $39,837 $17,742 $92,703 $67,226
Less non-GAAP adjustment:
FHLB prepayment penalties 18,363 0 18,363 0
Goodwill impairment loss 1,265 0 1,265 0
Amortization of intangible assets 491 486 1,950 2,480
-------------------- -------------------- --------------- ---------------
Noninterest expenses-traditional ratio 19,718 17,256 71,125 64,746
Net interest income plus noninterest income-
GAAP based 27,314 26,028 105,391 108,771
Plus non-GAAP adjustment:
Tax-equivalency 2,097 2,234 8,156 8,237
Less non-GAAP adjustments:
Securities gains 65 339 540 996
Income from an early termination of
a sublease 0 0 0 1,077
-------------------- -------------------- --------------- ---------------
Net interest income plus noninterest
income - traditional ratio 29,346 27,923 113,007 114,935
Efficiency ratio - traditional 67.19% 61.80% 62.94% 56.33%
==================== ==================== =============== ===============
Certain reclassifications and restatements of information previously reported
have been made to conform with current presentation.
Sandy Spring Bancorp, Inc. and Subsidiaries
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except per share data)
December 31
------------------------------------------
2004 2003
- ----------------------------------------------------------------------------------------------------------------------------
ASSETS
Cash and due from banks $43,728 $38,397
Federal funds sold 5,467 10,670
Interest-bearing deposits with banks 610 724
Residential mortgage loans held for sale 16,211 12,209
Investments available-for-sale (at fair value) 346,903 639,460
Investments held-to-maturity - fair value of $312,661 (2004)
and $344,814 (2003) 305,293 337,634
Other equity securities 13,912 21,111
Total loans and leases 1,445,525 1,153,428
Less: allowance for credit losses (14,654) (14,880)
-------------------- --------------------
Net loans and leases 1,430,871 1,138,548
Premises and equipment, net 42,054 37,679
Accrued interest receivable 11,674 13,661
Goodwill 7,335 7,642
Other intangible assets, net 9,866 11,446
Other assets 75,419 65,243
-------------------- --------------------
Total assets $2,309,343 $2,334,424
==================== ====================
LIABILITIES
Noninterest-bearing deposits $423,868 $368,319
Interest-bearing deposits 1,308,633 1,193,511
-------------------- --------------------
Total deposits 1,732,501 1,561,830
Short-term borrowings 231,927 413,223
Guaranteed preferred beneficial interests in
the Company's subordinated debentures 35,000 35,000
Other long-term borrowings 94,608 115,158
Accrued interest payable and other liabilities 20,224 15,764
-------------------- --------------------
Total liabilities 2,114,260 2,140,975
STOCKHOLDERS' EQUITY
Common stock -- par value $1.00; shares authorized
50,000,000; shares issued and outstanding 14,628,511 (2004)
and 14,495,613 (2003) 14,629 14,496
Additional paid in capital 21,522 18,970
Retained earnings 156,315 153,280
Accumulated other comprehensive income 2,617 6,703
-------------------- --------------------
Total stockholders' equity 195,083 193,449
-------------------- --------------------
Total liabilities and stockholders' equity $2,309,343 $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 Twelve Months Ended
December 31, December 31,
------------------------------------------ --------------------------------
2004 2003 2004 2003
-------------------- -------------------- --------------- ---------------
Interest income:
Interest and fees on loans and leases $20,137 $15,995 $71,745 $64,749
Interest on loans held for sale 183 120 705 1,113
Interest on deposits with banks 23 4 31 13
Interest and dividends on securities:
Taxable 4,390 7,466 21,927 32,076
Exempt from federal income taxes 3,653 3,705 14,433 14,214
Interest on federal funds sold 269 38 549 302
-------------------- -------------------- --------------- ---------------
Total interest income 28,655 27,328 109,390 112,467
Interest expense:
Interest on deposits 3,923 2,784 13,059 13,675
Interest on short-term borrowings 3,642 4,015 15,809 17,531
Interest on long-term borrowings 1,325 1,679 5,900 6,226
-------------------- -------------------- --------------- ---------------
Total interest expense 8,890 8,478 34,768 37,432
-------------------- -------------------- --------------- ---------------
Net interest income 19,765 18,850 74,622 75,035
Provision for credit losses 0 0 0 0
-------------------- -------------------- --------------- ---------------
Net interest income after provision
for credit losses 19,765 18,850 74,622 75,035
Noninterest income:
Securities gains 65 339 540 996
Service charges on deposit accounts 1,846 1,984 7,481 8,032
Gains on sales of mortgage loans 772 639 3,283 5,723
Fees on sales of investment products 702 512 2,472 2,211
Trust department income 801 721 3,352 2,955
Insurance agency commissions 1,040 876 4,135 3,741
Income from bank owned life insurance 619 561 2,476 2,746
Income from an early termination of a sublease 0 0 0 1,077
Visa check fees 537 439 1,956 1,792
Other income 1,167 1,107 5,074 4,463
-------------------- -------------------- --------------- ---------------
Total noninterest income 7,549 7,178 30,769 33,736
Noninterest expenses:
Salaries and employee benefits 11,192 9,188 41,763 38,084
Occupancy expense of premises 1,925 2,105 7,229 7,061
Equipment expenses 1,534 1,179 5,428 4,420
Marketing 337 1,060 1,717 2,500
Outside data services 722 671 2,906 2,619
Amortization of intangible assets 491 486 1,950 2,480
Goodwill impairment loss 1,265 0 1,265 0
Other expenses 22,371 3,053 30,445 10,062
-------------------- -------------------- --------------- ---------------
Total noninterest expenses 39,837 17,742 92,703 67,226
-------------------- -------------------- --------------- ---------------
Income (loss) before income taxes (12,523) 8,286 12,688 41,545
Income tax expense (benefit) (6,779) 1,502 (1,679) 9,479
-------------------- -------------------- --------------- ---------------
-------------------- -------------------- --------------- ---------------
Net income (loss) ($5,744) $6,784 $14,367 $32,066
==================== ==================== =============== ===============
Basic net income (loss) per share ($0.40) $0.46 $0.99 $2.21
Diluted net income (loss) per share (0.39) 0.46 0.98 2.18
Dividends declared per share 0.20 0.19 0.78 0.74
Certain reclassifications and restatements of information previously reported
have been made to conform with current presentation.
Sandy Spring Bancorp, Inc. and Subsidiaries
Historical Trends in Quarterly Financial Data
(Dollars in thousands, except per share data)
2004 2003
------------------------------------------- ---------------------------------------------
Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1
- ------------------------------------------------------------------------------------ ---------------------------------------------
Profitability for the quarter:
Tax-equivalent interest income $30,752 $29,866 $28,164 $28,764 $29,562 $30,060 $29,800 $31,282
Interest expense 8,890 9,322 8,383 8,173 8,478 9,137 9,744 10,073
Tax-equivalent net interest income 21,862 20,544 19,781 20,591 21,084 20,923 20,056 21,209
Tax-equivalent adjustment 2,097 2,175 1,919 1,965 2,234 2,148 1,809 2,046
Provision for credit losses 0 0 0 0 0 0 0 0
Noninterest income 7,549 7,420 8,241 7,559 7,178 8,751 10,050 7,757
Noninterest expenses 39,837 17,941 18,155 16,770 17,742 16,904 16,623 15,957
Income before income taxes (12,523) 7,848 7,948 9,415 8,286 10,622 11,674 10,963
Income tax expense (6,779) 1,431 1,555 2,114 1,502 2,404 2,938 2,635
Net Income (5,744) 6,417 6,393 7,301 6,784 8,218 8,736 8,328
===================================================================================================================================
inancial ratios:
Return on average assets (0.94)% 1.03% 1.08% 1.26% 1.14% 1.37% 1.50% 1.46%
Return on average equity (11.45)% 12.89% 13.07% 15.00% 14.16% 17.35% 19.04% 18.76%
Net interest margin 3.83% 3.55% 3.58% 3.82% 3.82% 3.71% 3.74% 3.95%
Efficiency ratio - GAAP based * 145.85% 69.57% 69.55% 64.04% 68.17% 61.41% 58.74% 59.28%
Efficiency ratio - traditional * 67.19% 62.73% 63.30% 58.32% 61.80% 54.92% 56.02% 52.81%
===================================================================================================================================
Per share data:
Basic net income ($0.40) $0.44 $0.44 $0.51 $0.46 $0.57 $0.61 $0.57
Diluted net income ($0.39) $0.44 $0.43 $0.50 $0.46 $0.56 $0.60 $0.56
Dividends declared $0.20 $0.20 $0.19 $0.19 $0.19 $0.19 $0.18 $0.18
Book value $13.34 $13.92 $13.51 $13.76 $13.35 $13.10 $13.04 $12.54
Tangible book value $12.16 $12.70 $12.26 $12.48 $12.03 $11.75 $11.64 $11.10
Average fully diluted shares 14,720,013 14,673,756 14,726,117 14,725,261 14,729,513 14,677,257 14,676,404 14,743,976
===================================================================================================================================
Noninterest income breakdown:
Securities gains (losses) $65 $138 $109 $228 $339 $106 $543 $8
Service charges on deposit accounts 1,846 1,886 1,881 1,868 1,984 2,027 2,037 1,984
Gains on sales of mortgage loans 772 714 1,028 769 639 1,906 1,603 1,575
Fees on sales of investment products 702 475 666 629 512 512 666 521
Trust department income 801 813 984 754 721 756 758 720
Insurance agency commissions 1,040 944 1,030 1,121 876 924 922 1,019
Income from bank owned life insurance 619 614 613 630 561 866 710 609
Income from early termination of
a sublease 0 0 0 0 0 0 1,077 0
Visa Check Fees 537 498 497 424 439 434 494 425
Other income 1,167 1,338 1,433 1,136 1,107 1,220 1,240 896
Total 7,549 7,420 8,241 7,559 7,178 8,751 10,050 7,757
===================================================================================================================================
Noninterest expense breakdown:
Salaries and employee benefits $11,192 $10,353 $10,285 $9,933 $9,188 $9,932 $9,514 $9,450
Occupancy expense of premises 1,925 1,861 1,815 1,628 2,105 1,839 1,533 1,584
Equipment expenses 1,534 1,380 1,324 1,190 1,179 1,101 1,099 1,041
Marketing 337 385 482 513 1,060 477 509 454
Outside data services 722 697 766 721 671 643 660 645
* 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, goodwill impairment loss and FHLB prepayment penalties
(resulting from the elimation of the company's leverage program in 2004) 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.
Sandy Spring Bancorp, Inc. and Subsidiaries
Historical Trends in Quarterly Financial Data
(Dollars in thousands, except per share data)
2004 2003
---------------------------------------- -------------------------------------------
Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1
Noninterest expense breakdown (continued): --------------------------------------------------------------------------------------
Amortization of intangible assets 491 486 $487 $486 486 665 $664 $665
Gooodwill impairment loss 1,265 0 0 0 0 0 0 0
Other expenses 22,371 2,779 2,996 2,299 3,053 2,247 2,644 2,118
Total 39,837 17,941 18,155 16,770 17,742 16,904 16,623 15,957
===================================================================================================================================
Balance sheets at quarter end:
Residential mortgage loans $371,924 $365,352 $343,176 $337,850 $331,129 $313,873 $292,415 $276,001
Residential construction loans 137,880 126,338 113,382 103,292 88,500 74,889 71,016 66,937
Commercial mortgage loans 386,911 372,790 329,894 322,754 323,099 310,502 299,621 297,428
Commercial construction loans 88,974 62,436 55,563 52,162 51,518 55,337 53,626 61,434
Commercial loans and leases 150,734 138,741 140,560 125,527 116,322 112,563 119,145 116,157
Consumer loans 309,102 299,826 284,771 260,644 242,860 232,377 233,865 232,359
Total loans and leases 1,445,525 1,365,483 1,267,346 1,202,229 1,153,428 1,099,541 1,069,688 1,050,316
Less: allowance for credit losses (14,654) (14,792) (14,743) (14,875) (14,880) (15,049) (15,033) (15,023)
Net loans and leases 1,430,871 1,350,691 1,252,603 1,187,354 1,138,548 1,084,492 1,054,655 1,035,293
Goodwill 7,335 7,642 7,642 7,642 7,642 7,642 7,642 7,642
Other intangible assets, net 9,866 9,987 10,473 10,959 11,446 11,932 12,597 13,262
Total assets 2,309,343 2,506,302 2,424,199 2,371,572 2,334,424 2,383,669 2,368,446 2,372,602
Total deposits 1,732,501 1,709,642 1,681,552 1,618,591 1,561,830 1,558,220 1,590,144 1,555,513
Total stockholders' equity 195,083 201,737 196,090 199,615 193,449 189,623 188,625 181,854
===================================================================================================================================
Quarterly average balance sheets:
Residential mortgage loans $378,347 $362,170 $355,676 $346,545 $331,024 $342,648 $302,344 $304,494
Residential construction loans 135,322 119,989 108,118 93,722 81,046 77,466 68,296 72,031
Commercial mortgage loans 379,857 347,451 327,441 316,768 315,603 298,359 300,309 295,728
Commercial construction loans 71,930 61,771 55,234 51,519 53,403 54,942 59,561 56,568
Commercial loans and leases 139,165 137,321 134,627 127,327 109,037 116,985 118,742 122,597
Consumer loans 303,639 293,025 268,861 251,411 237,478 232,891 229,085 231,770
Total loans and leases 1,408,260 1,321,727 1,249,957 1,187,292 1,127,591 1,123,291 1,078,337 1,083,188
Securities 801,871 938,448 933,253 954,822 1,055,558 1,084,348 1,058,878 1,039,112
Total earning assets 2,272,437 2,299,895 2,220,656 2,167,641 2,201,368 2,229,467 2,177,451 2,158,817
Total assets 2,441,129 2,466,535 2,384,929 2,328,985 2,357,816 2,383,783 2,330,589 2,305,834
Total interest-bearing liabilities 1,805,091 1,844,996 1,775,867 1,751,225 1,797,037 1,812,412 1,801,472 1,799,132
Noninterest-bearing demand deposits 419,723 405,647 392,387 360,341 351,761 355,119 322,431 299,638
Total deposits 1,727,800 1,684,328 1,634,340 1,561,666 1,556,965 1,581,873 1,537,111 1,488,023
Stockholders' equity 199,626 198,030 196,719 195,730 190,063 187,183 183,992 180,044
===================================================================================================================================
Capital and credit quality measures:
Average equity to average assets 8.18% 8.03% 8.25% 8.40% 8.06% 7.88% 7.89% 7.81%
Credit loss allowance to
loans and leases 1.01% 1.08% 1.16% 1.24% 1.29% 1.37% 1.41% 1.43%
Nonperforming assets to total assets 0.08% 0.09% 0.12% 0.14% 0.13% 0.14% 0.07% 0.08%
Annualized net charge-offs
(recoveries) to average
loans and leases 0.04% (0.01)% 0.04% 0.00% 0.06% 0.00% 0.00% 0.00%
===================================================================================================================================
Miscellaneous data:
Net charge-offs (recoveries) $138 ($48) $131 $5 $169 ($16) ($10) $13
Nonperforming assets:
Non-accrual loans and leases 746 848 674 802 522 564 479 567
Loans and leases 90 days past due 1,043 1,340 2,316 2,492 2,333 2,612 900 1,381
Restructured loans and leases 0 0 0 0 0 0 0 0
Other real estate owned, net 0 0 0 77 77 125 187 0
Total nonperforming assets 1,789 2,188 2,990 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 December 31,
---------------------------------------------------------------------------------
2004 2003
-------------------------------------- ----------------------------------------
AVERAGE ANNUALIZED YIELD/ Average Annualized Yield/
BALANCES INTEREST RATE Balance Interest Rate
--------------- ------------ -------- ---------------- ------------- ---------
ASSETS
Residential mortgage loans $378,347 $20,684 5.47 % $331,024 $18,308 5.53 %
Residential construction loans 135,322 7,373 5.45 81,046 3,721 4.59
Commercial mortgage loans 379,857 24,584 6.47 315,603 20,936 6.63
Commercial construction loans 71,930 4,416 6.14 53,403 2,797 5.24
Commercial loans and leases 139,165 9,168 6.59 109,037 7,362 6.75
Consumer loans 303,639 14,737 4.85 237,478 10,975 4.62
--------------- ------------ ---------------- -------------
Total loans and leases 1,408,260 80,962 5.75 1,127,591 64,099 5.68
Securities 801,871 39,989 4.99 1,055,558 53,170 5.04
Interest-bearing deposits with banks 4,664 90 1.93 2,160 17 0.79
Federal funds sold 57,642 1,073 1.86 16,059 151 0.94
--------------- ------------ ---------------- -------------
TOTAL EARNING ASSETS 2,272,437 122,114 5.38 % 2,201,368 117,437 5.33 %
Less: allowance for credit losses (14,812) (15,011)
Cash and due from banks 44,235 35,986
Premises and equipment, net 41,544 37,787
Other assets 97,725 97,686
--------------- ----------------
Total assets $2,441,129 $2,357,816
=============== ================
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest-bearing demand deposits $238,771 $614 0.26 % $211,449 $411 0.19 %
Regular savings deposits 231,196 764 0.33 186,046 496 0.27
Money market savings deposits 371,382 3,439 0.93 394,355 1,872 0.47
Time deposits 466,728 10,790 2.31 413,354 8,267 2.00
--------------- ------------ ---------------- -------------
Total interest-bearing deposits 1,308,077 15,607 1.19 1,205,204 11,046 0.92
Borrowings 497,014 19,576 3.94 591,833 22,306 3.77
--------------- ------------ ---------------- -------------
TOTAL INTEREST-BEARING LIABILITIES 1,805,091 35,183 1.95 1,797,037 33,352 1.86
------------ -------- ------------- ---------
Net interest income and spread $86,931 3.43 % $84,085 3.47 %
============ ======== ============= =========
Noninterest-bearing demand deposits 419,723 351,761
Other liabilities 16,689 18,955
Stockholder's equity 199,626 190,063
--------------- ----------------
Total liabilities and
stockholders' equity $2,441,129 $2,357,816
=============== ================
Interest income/earning assets 5.38 % 5.33 %
Interest expense/earning assets 1.55 1.51
-------- ---------
Net interest margin 3.83 % 3.82 %
======== =========
*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 $8,300,000 in 2004
and $9,300,000 in 2003.
Sandy Spring Bancorp, Inc. and Subsidiaries
CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES
(Dollars in thousands and tax-equivalent)
Twelve Months Ended December 31,
----------------------------------------------------------------------------------
2004 2003
-------------------------------------- ---------------------------------------
AVERAGE ANNUALIZED YIELD/ Average Annualized Yield/
BALANCES INTEREST RATE Balance Interest Rate
--------------- ------------ -------- ---------------- ------------- --------
ASSETS
Residential mortgage loans $360,737 $19,559 5.42 % $320,262 $18,491 5.77 %
Residential construction loans 114,361 5,603 4.90 74,742 3,675 4.92
Commercial mortgage loans 342,992 22,185 6.47 302,540 20,924 6.92
Commercial construction loans 60,151 3,533 5.87 57,011 3,307 5.80
Commercial loans and leases 134,630 8,685 6.45 115,902 8,107 6.99
Consumer loans 279,338 12,885 4.61 232,822 11,358 4.88
--------------- ------------ ---------------- -------------
Total loans and leases 1,292,209 72,450 5.61 1,103,279 65,862 5.97
Securities 906,901 44,516 4.91 1,059,583 54,527 5.15
Interest-bearing deposits with banks 1,817 31 1.71 1,538 13 0.85
Federal funds sold 39,456 549 1.39 27,565 302 1.10
--------------- ------------ ---------------- -------------
TOTAL EARNING ASSETS 2,240,383 117,546 5.24 % 2,191,965 120,704 5.51 %
Less: allowance for credit losses (14,823) (15,020)
Cash and due from banks 42,133 34,929
Premises and equipment, net 40,407 37,207
Other assets 98,218 95,662
--------------- ----------------
Total assets $2,406,318 $2,344,743
=============== ================
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest-bearing demand deposits $232,652 $657 0.28 % $200,855 $465 0.23 %
Regular savings deposits 216,257 762 0.35 173,078 512 0.30
Money market savings deposits 369,046 2,469 0.67 401,716 2,436 0.61
Time deposits 439,729 9,171 2.09 433,244 10,262 2.37
--------------- ------------ ---------------- -------------
Total interest-bearing deposits 1,257,684 13,059 1.04 1,208,893 13,675 1.13
Borrowings 536,758 21,709 4.04 593,684 23,757 4.00
--------------- ------------ ---------------- -------------
TOTAL INTEREST-BEARING LIABILITIES 1,794,442 34,768 1.94 1,802,577 37,432 2.08
------------ -------- ------------- --------
Net interest income and spread $82,778 3.30 % $83,272 3.43 %
============ ======== ============= ========
Noninterest-bearing demand deposits 394,622 332,443
Other liabilities 19,698 24,305
Stockholder's equity 197,556 185,418
--------------- ----------------
Total liabilities and
stockholders' equity $2,406,318 $2,344,743
=============== ================
Interest income/earning assets 5.24 % 5.51 %
Interest expense/earning assets 1.55 1.71
-------- --------
Net interest margin 3.69 % 3.80 %
======== ========
*Interest income includes the effects of 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 taxable-equivalent adjustment amounts utilized in the above table to compute
yields aggregated to $8,156,000 in 2004 and $8,237,000 in 2003.