SASR - Earnings call transcript Q3 2017 | Sandy Spring Bancorp, Inc.

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Operator

Good day, and welcome to the Sandy Spring Bancorp, Inc. Conference Call and Webcast for the Third Quarter 2017 Earnings. [Operator Instructions]. Please note, this event is being recorded. I would now like to turn the conference over to Daniel Schrider, President and Chief Executive Officer. sir. ahead, go Please

Daniel Schrider

speaking, good General to Welcome this performance discuss of Ron Officer, appreciate Dan third and by We here call Chief Kuykendall. for our for our Sandy this afternoon. quarter Financial Schrider is This afternoon Sandy Mantua; XXXX. time I'm afternoon, you, joined to today and everyone. Phil conference the and Counsel Thank your Spring Bancorp, Bancorp's Spring

and analysts call as be there open call media, all website the Our today's a well today. our later the will investors, live as and of is of webcast available a on news to call replay

Harbor a But Ron? We will started, give get after of Safe some will brief before questions statement. we key highlights. take Ron your customary review the

Ronald Kuykendall

ladies and laws to significant indicated. future of variety a Because results by those based subject regulations; uncertainties materially to include, future of Dan, their probable risks and gentlemen. intentions, and uncertainties. future forward-looking of and make These are statements that and risk; Bancorp of affected because upon earnings they of will achieve this afternoon, differ from by, of benefits; the interest of statements goals. ability other statements to and are and financial subject matters uncertainties, certain are and losses; you, forward-looking significant loan other estimates Spring market statements rates, statements Bancorp’s conditions; good to other assessments and costs may and Sandy forward-looking economic are These future or Sandy in other lease and webcast projections expectations; nature, estimates management’s goals, these Spring actual uncertainties. which, market estimates behavior, and risks and of Thank

its future In addition, indicate of not the do results. past results necessarily operations Company’s

Daniel Schrider

and Ron, to joining you for you, us. call on thank everyone the Thank

questions to We take will share your brief remarks. immediately I happy after be some

as demonstrated the we of closing indicates, Bank. performance our release prepared As WashingtonFirst solid acquisition today quarter, the our issued earlier of during we press for

to As has operating by been operating the a high-performing case in performance continue generating efficiency. focus core recent team, with a on our be driven results quarters, strong

second Our just $X.XX region. rundown very main diluted third for for income XX%. release. for compared of performance quick the competitive per and year-over-year consistent of million share are the here's was $XX quarter highlights DC the linked this was XXXX. diluted $XX pre-provision year. third or of And the On core income income $XX.X a $XX.X of share XXXX, greater share or quarter net XXXX increase quarter highly Net balanced and $X.XX for diluted Washington, a from million third a That's compared growth of to the $X.XX or of pretax of per in for results $XX.X income quarter the per of to net generating quarter million million million the this basis,

XX% of quarter expectations third quarter. and core with to loans line continued as the strong for was driven XX% in Total the of by quarter the total increased compared was XXXX second last of XXXX. compared and X% loan Our to compared to quarter linked the solid increased to net income, the in which third interest third higher quarter growth performance up year

outlook And the second lease $X.X The third a losses continue of fixed portfolio. homebuyer was of of the of loan basis. quarter quarter. will quarter of Growth led loan XX% mortgages The growth. and our commercial of on the types the in sale $XXX,XXX $XXX,XXX remainder continues rate third loan to with year-over-year XXXX be XXXX. our the compared include first-time charge sales for did with segments linked million to for consistent XXXX $XX provision for periodic our charge of growth approximately third experience quarter for in a million and the within These of out for

continue Our and are to solid credit quality be the well. very metrics portfolios performing very

Going the third net of provision interest growth. of X.XX% quarter forward, net was consistent XXXX, for for The and we X.XX% the the core will the this second we with result quarter margin expense loan be compared do for primarily experienced expect to of margin quarter year. third the

team and driving reflects by on managing improvement strategies has earning margin funding Our the asset funding and growth, impact costs. executing had loan yields our

from deposits and transaction At relationships. core XX, growing a banking continue year to commercial account balances September interest-bearing combined and XX% increased compared both non-interest-bearing We balances ago. retail to

in new fund and the WashingtonFirst. million Noninterest solid of for in $X.X once the quarter, year. to our banking of same and strength income third using million look with branches from expansion to a $XX.X level at we're a decline prior income able from XXXX, was the quarter forward and despite is the growth a bankers integrate through ability can deposits that continued Our core to asset company, key strength we mortgage

for of quarter efficiency the quarter the XXXX. management of XX% and compared the for third third the in or by our face quarter XXXX. third same of given the to to improved commissions increased compared period our for to in marks year third costs efficiency, that to Agency million expansion This On second be $X.X of ratio insurance acquisition wealth positive Expenses quarter of current from XX.XX% $XXX,XXX this last increased business quarter side, through last continue evidenced to consecutive of the for well-managed income XX.XX% merger-related XXXX. the XX.XX% of even occurred year, quarters our approximately in quarter the compared as quarter. X% for the non-GAAP

with of the of net the effects management. growth expense result success primarily focused interest is income, in Our coupled

we total and X remains leverage talent. tangible and strong, of position ratio organic X with asset Tier to continues to Overall, of strong XX.XX%, Tier teams ratio a newly build to continue capital Our of capital tangible our ratio capital risk-based revenue-producing acquired XX.XX%, common with X.XX% a growth ratio be X.XX%. a of risk-based

as we've between as and filings comments experience. is merger we we move full have and smooth the to on at agreement Sandy said, bank. core moving a organizations company our focused to the together systems to your applications both to fourth integration our build have We'll a work today. definitive quarter The and for acquire banking ahead unique to client work closing the on my first lastly, transition. continues we a Our possible XXXX And best delivering transaction, going been quarter towards That concludes working a consistently WashingtonFirst solutions look continue submitted. for clients now deliver through experience general and force forward questions. approved And all Spring of Shareholders the in of conversion. well, look regulatory work closely WashingtonFirst teams and a is successful as they're remarkable

just If we yourself whom you are with can you come when on identify know speaking. appreciate we we'd so it,

Operator

Instructions]. [Operator

Catherine KBW. Mealor is up with First

Catherine Mealor

with the to start want I margin.

you this about costs, increase, increase think should in level and for Can XX look dynamics you If give had any forward at then bps. the we betas it your highest around the of linked color like looks for quarter at outlook deposit deposit accounts money you growth? how moving about the market your there,

Philip Mantua

money costs through no is deposit the quarters question account. is Phil. few and probably overall quarter this to market the driver There that is last single here Catherine, the in biggest the related

whatever folks with product or interest and more trying I by we predominantly even of to the the that pace teaser and that having think our -- have right most in the in than change in short-term rate get rates more as the keep it's tiers to or door. within be so, that that pricing driven affected, much the offer we

think a all and also we'll with need designed the everything point their after the pricing nature base we the standpoint, of to road the time are have of core I also WashingtonFirst translate this anticipate let's being into to I at by to the margins. knowing before way deposits more detriment, is say, this help from of aggressive and -- trying just to positioned transition some of down integrated about we it's deposits our and the think more the and that of talked deposit that that

So basis need even probably level is, will that also fourth get both we basis just And dependent points. the margin growth think it stay way our price to the X X side. where of to probably maybe would continue on our asset we at or as be quarter, look point and will compressed loan I the about that on

Catherine Mealor

next helpful. you lenders still retention really And you around we how of move to any That's recruiting close it Any on fourth also that new in expect Okay. on talent you quarter. that's that give and into the I can going? then as for WashingtonFirst, year? update said then area know update

Daniel Schrider

Sure. Catherine, Dan.

that those both new in into WashingtonFirst of -- their I as early completing had we're leading informed and July. we back just retain be that, have, we had -- to groups and they're we for. to then the to employment have to quarters, both formal where relationship formal of mentioned very early accepting occurred collaborating the in employees. who they're what's process the prior intended client We employees -- of then interest working, going have having determine folks we companies communications assignment, And be working work the had going about from best those We

put seat in so. continue have modifying And in possible. as will So folks process a to team client cases, we're do close as our now together new to in that our most been sitting their to headquarters the

has successful very folks anticipate frontline not obviously onto did of in offering which been been the all holding talent, those not We a position. we've So key.

shape there. so good we're really And in

which anticipate of continue really in us the quarter. will are And close doing is We to approval, puzzle at the piece point, allow this we, regulatory to that awaiting so. fourth last the

really along the moving are combined things with So well groups.

the in continuing first I of Both well, that take entity enthusiasm, lot energy. quarter. are companies of lot and momentum perform to combined a into think there's we'll a the

Operator

with next Instructions]. from comes The question Austin Nicholas Stephens. [Operator

Austin Nicholas

there? on any contracting lines Maybe any looking And remind you to outlook government that Could of terms your us from in are opportunities you loan just here? or grow specialty growth. of

Daniel Schrider

Happy is this Austin, Dan. there. to comment

bank most closer bringing and talent middle to that been in the C&I We in into our of year, more contracting on addition acquisitions brought the a government in on the have this space on -- even of C&I market for have area. talent the here focus we've to

diversity growing really by that time, amping at and reveal? our of So been we does to loan our That we've clearly, reveals complement C&I want over that up portfolio lead solid generation. what

focus talent that where to that's the Cardinal the that of that we has folks with United what in and we'll joining from the brought are so have us after continue on Bank. bringing merger come in And most --

Austin Nicholas

industry what credit drove commercial loan bit quick. outlook in, up the you some on then Maybe on quarter real helpful. in terms that turning Understood. of Could a That's charge-off color number credit? your just it's to give maybe maybe you that if and can, this

Daniel Schrider

Sure. was outlook put And within one the asset NPA's Austin, the that of going this But to not had. nice any fully and during provider was a of was continue But not we C&I that health towards think, we're indicative, issue I through, in really one portfolio, reduction to an indicative this the working early had really effort can. And isolated type off. that work issue time borrower our isolated appropriate been category, felt one we've go and it's this transaction it in ahead write activity. we to quarter. to a in segment forward, important, identified, we of of advance achieving it's recovery going reserved care within the

outlook look that quarter credit measures this last. solid from metric we're Delinquency And really pretty a going over is stable down is Our forward. really standpoint.

time, to transaction, is anticipated We be I'll pointing being anticipating of same anticipation put in risk lot larger credit build to portfolio. in effort continued our management of will that direction. we of continue And kind it's say right the the here. organization So on -- at the once continuing a into growth everything much a infrastructure, close that the in

are about standpoint. where we So feel a from credit really good

Austin Nicholas

the of to you've of X nice last just side And on right income. seen your I goal increasing things. fee to maybe revenue the concentration had continuing you of ramp focus some RIAs an, is kind And target in that and guess, could time. of kind kind Are of over kind we that table total the integrated? the that an you WashingtonFirst that helpful. is -- grow expect that That's with And know a growth question maybe that once perspective? wealth to I from transaction potentially kind of up off of management is now inorganic Great. back to

Philip Mantua

Austin, is this Phil.

is much course, in our overall category or total our work balance working the through modest more the revenues and continue growth recognize, to themselves. to fee But the through as net growing interest that, as on we focus sheet acquisition as -- the percentage within inorganic the growth think by in first of we're side. referred said on, a have and thing to bank of loans the I we income in both on probably think, those income wealth insurance deposits space to as is fee-based both with on reduced to having success the through I still even continue a the you integration rate opportunities front, growth

nature of changed. our add our think hopeful through other be I we those that or fit of areas agencies the So either to RIAs to That other both business. fee time would hasn't over continue to would

Operator

like Daniel the would closing any turn I for remarks. session. to over question-and-answer our Schrider back concludes to conference This

Daniel Schrider

again And the joining you. Thank call. thanks everyone for

be great further your can of value as us update integration. IR any, we to with what very move spent excited we will the call. for you And this e-mail as if what again, about as your with any the at at today. integration have And are have for the receiving you you and appreciate on you, really shareholders forward Thank look we and us conclude I on time enthusiastic you comments giving holds time, And to us you, mean forward the call. We'd continue or our have that it sandyspringbank.com. you appreciate to WashingtonFirst this and future We the and afternoon. for a feedback,

Operator

The today's presentation. for conference now concluded. has Thank you attending

disconnect. now may You

Sandy Spring Bancorp (SASR) 19 Oct 172017 Q3 Earnings call transcript