SASR - Earnings call transcript Q1 2020 | Sandy Spring Bancorp, Inc.

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Operator

Good afternoon and welcome to the Sandy Spring Bancorp First Quarter Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instruction] Please note this event is being recored.

I would now like to turn the conference over to Dan Schrider. ahead. go Please

Dan Schrider

bring and us Grant Spring everyone. you the and Thank performance our date Thank to response our good conference joining in to XXXX quarter for the Sandy up call for to for on you, Kaslow, impact first afternoon, colleagues, speaking, Officer; you to from Bancorp's first few a time Schrider joined Counsel Phil our at Financial and General my Chief Mantua, This Aaron Spring COVID-XX. Dan our Sandy here and in weeks I'm is Bancorp. headquarters the for by for discuss

Today's from the But the website. call live quarter questions, your the statement. call will give is webcast open and a highlights our on before to and customary all taking we investors, analysts be Safe will of Harbor later Aaron media get and and started the replay a the there covering

Aaron Kaslow

everyone. statements other future afternoon, this loan expectations, goals. statements financial and Bancorp Good include benefits, other the statements of webcast Dan. assessments intentions, ability are and make in uncertainties. and risk of market and costs subject that you, risks lease Sandy to risks losses, earnings and probable of forward-looking forward-looking to and of achieve statements assessments Spring Thank goals, These of estimates will and

-- may which materially to their uncertainties. uncertainties, significant indicated. Sandy Bancorp's statements matters, variety and or market subject these impact other COVID-XX behavior, regulations future economic they affected These differ other projections nature and because forward-looking very Because including future the upon are a rates, results interest subject to future by based are and those the are uncertainties, significant of management's estimates actual by from of of of conditions, pandemic, Spring laws

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

Dan Schrider

line today well you're are your I unprecedented first during Thank find you time you, that discuss be and that, quarter first facing. that But managing we're hope healthy pleased and loved with to ones off, our results. all on the we I'm to Aaron. you this

XXXX in completed year in as stated our we into We've Jackson of of we well and position Revere strategic came market to presence record Bank. the the As we're Pendleton preparing as Rembert expand great today's strength. press close and acquisitions release, another

it to the economic center took and and unfold events all known swift is quickly As health quarter late required well crisis you, began the global of action. that first the in to stage

continuity continues But on despite Revere RPJ still an though disruptions these significant serve and and clients plans during our what closing business We to both we February April transactions Bank planned, extraordinary Xnd completed continue Xst. our time. as implemented be on to

taking building on sustainable We care issued going on through first later employees little clients. in will we the morning, will our that remain talk know quarter COVID-XX Revere a communities, us over I focused a and do is Company to a results. start come and first of supplemental time of a materials and response I growth we August. the full our by discuss call but this this remain We systems and critical conversion our for as this that for together driving track stronger

diluted for net quarter income to million income fourth credit or the compared were of was for provision or impacted by current for million $XX.X diluted of negatively per first income $X.XX of diluted $XX.X the Net share quarter $X.XX or of Earnings of net XXXX, quarter and million first XXXX. per million. of XXXX the the share $X.XX $XX for per $XX.X losses for quarter share the the

to little While more CECL implementation touch forward our move Act as detail. on we under could in CARES delayed A the have planned. will call, the of the CECL in elected later adoption Phil with we

the to deposits of the the grew and respectively end X.X% grew our of to ratio compared the linked balance our the first to bearing ended at loans the X% portfolio, since deposits fourth XXXX loan the sheet, Within and compared at and On quarter XXX% quarter X% compared to X% XXX% prior quarter. total year by deposit fourth deposit quarter. and non-interest

is significance the that only the repriced last down points loan that rates Our deposit than summer, began Fed for cutting time fact XX deposits basis points. first basis X versus the contracted as were faster loans since yields costs

with environment. on our reduced to to pricing and deposit has plan promotional focus already we decrease aggressively pricing aligned attention levels believe the as current continue We we competitive market to rates been trends, reflect

sourced will we've deposit experienced be current growth relationship environment online was existing both of and likely into commercial the and account and the relationships, which new limited distancing our social expansion place. to is put through of Given that retail portal opening

need On lending we primary additional anticipate Fed and side, the Protection the source utilizing our PPP activity liquidity the to funding the throughout utilize for raise should as Program Paycheck year. funding our vast of facility liquidity sources we'll

solid position a perspective. very a in from are We liquidity

to Our was outlook for up and we of strong loan we quarter that entering commercial momentum numbers had demand, the speak some into coming solid put year the the year.

Non-interest this the XX% mortality first Exclusive in as for prior securities the factors, production wealth for by included quarter the current million of management first these quarter XXXX. growth the in or insurance of of to $XX the in proceeds. to first to was year quarter the for $XXX increased or million driven $XXX,XXX XX% and quarter XXXX $X.X of income result million quarter. $XX.X first representing compared The the million a of acquisition income gains best compared was increase for first the quarter of $XXX our RPJ. compared XX% loan commercial non-interest the life quarter $XXX,XXX XXXX And was income prior-year included quarter the million quarter. to Our in

in Church, enhance our income space. RPJ capacity presence, Headquartered wealth helped us of Virginia, our non-interest and market Falls the sources diversify our has deepen in

committed of every providing we're Washington the As financial region, services and at families Greater individuals, to a life. community stage to bank businesses in

in approach clients our continue grow sector market fact do to a ability talent value to testament the the attract and and that the is works, service. the to in wealth our For top our

On banking the first increase same $XXX mortgage representing $XXX quarter a overall year. which last the million a side, XXX% quarter accounted in million mortgage last compared of is Refinance same compared for year. the production, quarter the to activity XXX% production to increase was

As for declined seen activity in seeing application levels March. has what the we're today, from elevated

strong. mortgage favorable throughout with level production relative purchase demand. of acting to credit headwind likely distancing the a Conditions Purchase activity we within social pent-up activity and demand tightening due When modest a remainder begins is refinance modest to to policy XXXX remains be continuing are the expect pre-pandemic relaxed, footprint rebound to levels. our to from standards remain generally at as

value quarter Federal MBS capacity first are conditions servicing mortgage by asset and of market MBS primary were forbearance stabilized Reserve the purchases rights impacted seeing in market market Mortgage to was investor banking that in were do negatively collapse so widening in illiquid a the CARES mortgage the secondary broad market Act. volatility, provisions spreads result improved income conditions conditions These for markets, secondary have included constraints the we end. result, of April. secondary far at as the the quarter and that and

decreased interest to valuations of XXXX, the up, quarter headwinds, depressed rates interest XX income mortgage of but the XXXX compared the showing of constraints first signs X% over first of are they be the declining for early quarter continue servicing reflecting capacity to and net Investor easing preceding impact months.

XXXX. pricing, The the for of in for range to to we expect the And deposit integrate margin the XXXX balance lower the X.X% we of as first in Revere. compared X.XX% X.XX% and our quarter of inclusive net declined to Revere rates continue realized to our sheet, remain interest to X.XX% into of first quarter effect would margin be

side, million of of to compared the increased On million $XX.X expenses expense quarter first for in non-interest $XX.X the XXXX to XXXX. X% quarter first

expenses $X.X commission non-interest loan expense in year, Excluding higher X%. increased of increases for levels merger to acquisition quarter well in primarily as expenses for the as originations. This and is compensation due mortgage million this

in ratio cost in quarter ratio The We the net growth from also cost first the first quarter XX.XX% compared rate current for the February. was the operating was of a the for quarter XXXX. incurred outpacing year and of as result same expense, efficiency to a last XX.XX% of the the current of to for compression fourth non-interest efficiency revenues XXXX period. additional year, mortgage during in non-GAAP of XX.XX% The margin as RPJ quarter -- increase with result the growth acquisition of in back the -- time the monthly of

disclosed and non-accrual $XX expected loans new as million to the From compared for growth XXst, are credit accounting loans losses, purchased is credit December million under designated guidance. non-performing for new non-performing perspective, as of XXXX. loans at loans million $XX.X previously a now credit The due to the totaled in standard impaired accounted $XX.X standard's

credit our to million quarter remained for portfolio strong million XX, placed new XXXX. the amounted of for As compared March as current non-accrual prior $X.X the million fourth $X.X the on quarter during $X.X to quarter and year of overall loans

to COVID-XX uncertainty through clients is As work and closely be our we we the environment. of and manage with its likely move challenging through on economy, will what the to impact a credit continue

average Company for per X.X quarter, its price of $XX program, a the shares stock a purchasing During total the $XX.XX completed an million at of share. total first repurchase million of

at $XX.XX $XX.XX XX, per per the and March at After dividend March quarter of intangible at stock $X.XX of the stable remained in of addition value in the quarterly the XXXX. an book XXXX $XX the second repurchase of assets. goodwill compared to and million share completion XXst increase in program, Tangible share

X total tier The a capital of leverage XX.XX% tier X Company X of a a a ratio and risk-based of ratio ratio ratio had capital of XX.XX%, tier risk-based common risk-based XX.XX%, X.XX%. capital

credit earnings to to $X.X January exclusive to As elected of in loans, the to the credit was for related $X.X the million of at allowance reclassification the to with adoption transition of million. $X.X on the only CECL impact the I initial acquired allowance resulting X losses proceed for losses we retained date mentioned increase impaired earlier, credit million,

of million As charge for the the first and of first of losses for impact million of most $XXX,XXX a XXXX. the quarter quarter mentioned, negative accounted quarter to credit for the of first XXXX was the of economic of credit a provision. result as provision $X.X XXXX $XX.X first The the a for projections compared COVID-XX quarter for of

effect late which credit of Excluding approximately $X.X was million. in have the provision the deterioration to in been the projected the quarter, outlook the economic first for losses, significant

I'll to supplemental Mantua our we is CECL reference conjunction on then I do. material and our through release. slides, of going of adoption some pages help we now the in earnings drive view the make number transition first just I'm deck direct the Phil page general where stand going situation. I'm that a more comments understand credit of position. several to to related -- numbers into capital through morning want as some your cover on our walk current released I'm this well comment COVID work going you of a to as this little with And attention -- to materials and to as the that we drive as to

to XX% did actually of number all of without the terms fact to we which without were very been in we slide related And clients a consolidated companies, That On private meaningful not we meetings that for of did in-person with pleased than continue our a teleworking. and branches. drive-throughs of like disruption. number approximately the include took us, serve exception our personnel to with I'm able XX that did appointments, non-branch or X, actions, to the really transition close we public has travel hesitation spending branches, has many access lobbies business branches the a lot

the to weeks see who actively two or we we work members also we then for able to reasons slide we were And you bonus place of crisis, on of time were to our evaluate, into related which X on redeploy personal the put -- leave, continue staff work outside On off paid to. we employees will for COVID-XX for established need other onset those where of personnel that to of remotely. not can the and to unable an continue branch appreciation provided

lending, as loan the our center In those some cases, or in process consumer service that's call center can out mortgage in area, that client well. PPP help and the

routinely speed going communicating the to on. up people Company keep are and We on what's throughout

relief to programs. programs page terms X updates perspective lead slide from not state but client as from provide want web to On our for in outreach federal understand available we well as a clients what's special to and latest the them the of a resources bank, only

on We DC this with many as available clients with of waivers. a understand Protection and the on that number the here we next we press we're case working release, working through of on Paycheck our commented slide In bottom Virginia, help Program to which area Maryland, to are I'll the them the of basis clients, help the in difficulty doing and you case and a hit bankers have fee by help things clients to this of different in slide. programs imagine the might through, our them in

in with Slide hit statistics, we funding by April Paycheck billion X,XXX terms in requests. Protection had X, some our applications of received of for Program, the over the the we are activity as these ran XXth $X time of over out

with registered documenting an $XXX funding we're we this the million that -- of base date employee XX estimated go in over to with that and businesses of process that will X,XXX. SBA of over As those X,XXX with about been and loans the have have

provided interest-only Bank. clients from deferrals the to Revere April our colleagues and number PPP, addition In does our for new we've Again, new is deferrals from Revere a as XXth and clients. Bank this also include of or of

to next in retail And relates a we XXth as terms XXX then modified the of for both and see it as We've So over requests. more balance of date commercial the for XX commercial in consumer late requests. charges there accounts And X,XXX to million. have a and clients. as is do you'll of April $XXX received of slide, more, accounts number waivers to

transition to data little with segments the portfolio we certain as pandemic. of a detail our move hopefully specific to credit going to on some you I'm inform portfolio So more through

here the as pro of the but of On includes terms left this in that a information The of elements is Revere, slide composition. in chart top busy show you. diversity X, to is it's really there loan composition for a positive loan forma portfolio, X/XX just

quadrant, you a to slide XXth terms page down again If it's you the just Company in bottom April combined to left through trends. utilization give the of snapshot

month quarter space back to there's as loans. month by going home and through utilization Just the in the December stable both pretty commercial see as equity through and you well can first

existing some may have I have credit, of a what a So we seen is not anticipated significant of good lines sign. think drawdowns which

Again you the in and then portfolio can percentage certain the page segments of the the are Sandy And top portfolio. across of Moving our to portfolio. see by Revere right. requests These Spring portfolio. of balances the quantifying modification combined the, the

request. So we as of X/XX, had $X.XXX billion modification of

You we and delinquency million longer follow-up. is obviously movements once can -- credit real that a then what delinquencies see is falling percentage in then date which the you prior once page requests. right on delinquency those we material see is -- the are in decline of bottom there no no deferred, a see they see you to in commercial off, why $XXX that the counted mortgage speaks this, processed trend of same in consumer is had And as the and

handful us work several interest the there part portfolio to the Slide slides of pull with This you be we X a may really as it is in of next -- our $X.X are certainly commercial is is is of retail clients. size million. is billion portfolio estate We XX.XX% pro-forma news as Company. the $X the The the loans. Again, combined commercial of got for good of nearly average April portfolio real representing and X.

good don't portfolio we solid pulled numbers the bullet to expect Spring retail, these that assessment. weighted materially service From centers. and together coverage an debt and perspective, these Sandy underwriting, But loan these next be that underwriting are have into We neighborhood to really it the average points, not two in-market different. value portfolio Revere -- do reflect

at bottom those and see for XX% then slight outstanding of your refiled That correction, interest PPP approved the X, deferral to slide debt need a believe a been make a I can deck, note loans. of I of actually XX% the You of is we have only. requested balances number this be or number have the might

loan similar flexibility million same portfolio, and loan million, difficult have low XX% average in same XX% average XX% deferrals of reported slightly the and $X outstanding only service values minimal Office, requested again the very 'XX are of is our number $X correction, X% very to of again, commercial Again, end revealing of commercial the in that more believe last, some the outside loans X% of and then the or And it's slide over hospitality, or size of of couple $X portfolio. earlier loan very million size XX% size, and metrics the XX% deck obviously XX%. at our that balances of X% under average Again, nearly with footprint PPP as information, deferrals loans. our interest market small information of north just And value slides deferrals market, in I then on specific requesting modest, a and again last the hotel is opposed what program, to LTVs these involvement requested primary this million, of a in to and in showed. balances around program. very and very participation was to loans XX earlier PPP And hotel about multi-family a market borrowers good minimal coverages coverage just the PPP outstanding compared have strong weighted loans. of on just debt in where commercial the of associated $XXX then

client loan average overall to outstandings might $XX million in from significant of value, program $X.X loans. imagine as X% XX% million XXX restaurants estate paycheck in in XX% And the protection that slightly over with usages of you north commercial line space. Average in of is and relationships size million, loan weighted commercial is or then lastly participation secured, $XXX real line with

in So through deal and a I with and the helpful. of about that and going great These geared cycle. clients hope are attention let turn to pause and are Phil that portfolios have is the focusing that to information our helping him capital. over I'm we on talk CECL it in And

Phil Mantua

to you, Good the this here find Thank everyone right. well everyone, hope on afternoon, afternoon call. I All Dan. we those

just Dave As mentioned.

for the to here to related I'm CECL the our minutes credit adopted. driven time take quarter additional first first next and to details has few for been in Now provide -- CECL going allowance some losses the

component had, as a XX quarter would you presentation type for can Pick major here first of as allowance waterfall we refer up to the on our we build Slide the 'XX. on see And in economic slide. the number a next that the will variables, on dependent forecast, build is change of macroeconomic which outlining the highly due on key to in the is but be

local rates were you forecast peak we that through affected MSA COVID-XX some economic that of of actually that food second forecast national our about year forecast an to April. XXXX early X.X% forecast in broader the a recovery assumptions. the year. developing is this were maintained next quarter that for employment XXXX. same that the methodology at based in go market our This and of This year. slide in level an -- followed for of integrate is and on X.X%, in end be by of the released at X.X% case this local That's that overall a a talk of second throughout projection a in in range can But conditions half and uses effects includes XX, quarter here year in around Moody's baseline into was If a unemployment unemployment X% rate this the peak about place CECL And based Moody's of economic with first settles of then portrays national at the methodology quarter. rate by the the which second

years In at have the one particular from the determining of uncertainty supportable to the outlook to forecast reasonable shorten reflect in forecast horizon this this but the our chose quickly we for time. to was considered and time period, results immaterial. both of in that two the then year did period the results long-term we two year purposes application We difference using we be and the two to perform one calculations that deemed the

positive based move a period. what mitigating government take to this the one-year, others. of -- and that as this the such the factors felt outcome with could this So we Because regard. the uncertainty, be and take programs conservative we that most or forecast best into PPP chose We as aforementioned that on supportable chose perceived was impact not potential consideration would that also the we most could forward just to comfortably any stance of in be most was

in million significant increase which most in the slideXX, build you reserves If most provided you this on above some additional then we surprise will portfolio of a adoption related amount. to X the the granularity case we business portfolio, reserve January is depicted our assume look commercial additional where big amount initial where be not to in based at by can the but $XX.X see I added level the reserve

COVID severe on some test the we a a stress calculations as we quarter scenario a quarters. capital baseline you. movement position Finally, the and us you the regarding based situation. SX we Slide really through where in back trend Moody's confident ongoing our the that ratios turn continue last Dan, to same brief position not have position we bolstered this the to raise are utilizing in that forecast to quarter we sub over it our constructed our below and recently have relates done position our year. be recent this fourth that case. forecast also strong capital although million and last We incorporated debt our explanations carry Having during is with of a slide, we economy note we feel XX, on also that capital the the glad refer capital some so, with I'll over with the do severe prudent against it depicted reported with ratios that three I'll confident five in $XXX provided CECL of capital our baseline With analysis to

Dan Schrider

Thank Phil. you,

to we colleagues like take before while from Revere. our and RPJ express to all Sandy Spring employees to way come sincere that to moment The my appreciation move Just our a of new our and to we've and each nothing for these remotely short clients are remarkable. safe I our grateful through been other of times. has care to of done know help And your that our together keep to people questions, have them uncertain all I'd take Bank, working clients everyone

and and Our comments move than enough now advocate thank With my there. clients conclude need we'll more being ever for to I team and questions. can't that, my your

with. So Grant, are state the we we take will who please what you're question. If you and company first could

So we're we know with whom speaking.

Operator

will begin Please will session.[Operator go question-and-answer with the G.Research. from question We Instructions] ahead. come first Comery Steve Our now

Steve Comery

is was to X.XX say CECL adjustments. -- This if some appreciate of though the can disclosures, then at just through since in about those has then. want the obviously Comery. losses the composition you're off, kind really the or the we've you what and changed anything reserve I potential if kind data Steve were seasonal anything and gotten I looking additional CECL I guys [Indiscernible], the start wondering portfolio since there's way going of helpful very

Phil Mantua

kind to judgments of might of whole information at changes Phil. portfolio additional we have know to on Steve going really relative the that I own this a what's lot any our on further in is reserve. this make gotten point to do make we

Dan Schrider

the actually end used at with by generated forecasts the very of Moody's the was economic The quarter.

Phil Mantua

forecast how kid recent. implement CECL five or of in in background, that one the was going mentioned fact we the they I the after In then I of quarter to the the to most my went regard quarter. we were on end initially through and published But that probably land we throughout of think different finally iterations that were deciding four comments

Steve Comery

enough. fair Okay,

Okay, full NII Revere guys can quarter of Maybe look and takes puts so Basically Revere where on help sort there? you then. and think a the about to are of should to I'll you the for switch in us starting point we QX. going

Phil Mantua

Yes, Steve. again. this Phil is

believe in we expect different the initial range, we on what one of than would, looking would comments to course sheet some our marks we in X.XX% environment somewhat we probably on we which of economic ultimately inclusive being say of that different things be their And I one forward is the environment. than that assumed. balance be I larger to thoughts then would range we'll going at what to in very adjustment obvious back be change what be interest that the related balance are in are think credit in that Dan's to suggested on that at the between margin a combined would in know he the the they marks initially the a had change related X.XX% to approach, to are that two are our the we looking I would or things two so and we going which for impact September reasons, land think the mark companies, probably the rate rate sheet could make thought initially of where the interest

may consideration that But suggested what does margin But depending degree, of the to thing that offset for include on how Dan remainder that would some that outlook the balance kind the other in the plays would of out. we other year. some that of only Now sheet. further each take be adjusting into combined

Steve Comery

more then one may. I Okay. And if

going if guys balances materially could a provide to, like behave average forward? wondering but So, I'm basis. you like an any you were noninterest on how on deposits, see pretty basis, looks period-end as down up those insight they expect to

Phil Mantua

is again. this Phil Yes Steve,

the the related up demand month biggest those, build kind the quarter think driver company in in in typical period and I in our to balances kind title that end of of businesses. was deposit seasonality

is, to quarter say were balances point. average So, you other would say look see would that the because I at that flat I DDA particular the effectively of than quarter effectively over this

ourselves as preserve time this in us made today the could period to middle as fairly much for positioned possible to third a the of payers, where have we be the kind even in back the either FDA current as kind try in of DDA adding taken steps some would happens position, in other development line I'm commercial in their that's looking were ability probably to terms what side the in for to for protracted pack the and time, think of we amount historic the or we the are we has bearing. I clients put existing at as looking be well not that probably sure try the market to come well more the margins as base growth Fed so We've this would of so our long the to rates interest for market, the than area, a given of in for expect as both pricing Given with tremendous competitors retail we as speak, in the amount the to the top though which in to mirror situation on lows. of moves of opposed we the, business will of rate probably of eventually, the rate on lot in these nor

Dan Schrider

virtue that. amount determine into is within by make That's PPP a quarter see everything certainly a at will ends like quarter. seen funding And but Steve, how of anything comment program. on I'll increase of only accounts, temporary significant but the the or Dan. The we'll we're basis, that's other timing DDA whether DDA

Phil Mantua

at of in and know not guidance build in related couple kind that because nature the for taking of period. then PPP program kind consideration me kind giving the quarter of anything think we that looking that potential reminds of a range. And up result I Yes, which a basis that within am to within all by the great fairly end I also Steve margin could up month us being quarter to lumpy just and

Operator

Our next come Mealor question go ahead. with will KBW. Catherine from Please

Catherine Mealor

lot really Thanks, from to disclosure, and thank good want it we're a all everyone. you afternoon. than this also I more for seeing helpful what was

is maybe when what percentage forgiven. we then start there. of And program job how versus So of the quarter expecting think the you what's How head. about Thank of follow-up be to think is will third? great you. on just and think much you're the modeling PPP end wanted should And or second kind timing at the you those fees to I

Phil Mantua

this Yes Phil. is Catherine,

toward that under. maybe not range of XX%, forgiveness loans that And point forgiven Our what to the according estimating related in would that the current somewhere be the then potential those are, we've be been fees may the of this to of may the view somewhat back high, and and also of but levels, operating are of and program forgiveness. we're prepaid XX% we be the that kind be kind the be expecting amortized I across spectrum maturity that at would brought would that's think

kind that's be flip way handle. But forgiven. income truly big So in of right that's of maybe pretty now, interest are about the really the into probably that's part because of We'll to under think come that this kind comment with is like would operating margin the that's don't working point. truly through at about how it kind But of we're where we the know given -- margin what much best of back the I quarter. that

Catherine Mealor

Got it. helpful. That's

Dan Schrider

believe timing funding the out fundings, terms we'll that all PPP, first be by Yes, of of that XXrd or is or XXth. round in of first done need to are

to to come are uncertain going So -- back. that all funding those a paid. little how get it's It's will bit exactly fees as

Catherine Mealor

as it can is think how, your credit book. from about, about impact okay, accounting X% factor markets we that dilutive Makes Revere mark of you I thinking purchase increase mark and and into and to to you're then went for was this is I the in steel be going about sense, it the guess thinking quarter, COVID-XX the is

of range about solution mark, book what you kind of you like. look a maybe are with higher the think So, should how

Phil Mantua

Catherine I have to Yes clearly the think question, mark. to of first the your through related part I into think impact come COVID of initially

we carved be environment the thought PCD as many to to day than current it And of the on what will think regard, are how be going again, loans therefore depending that opposed number also we component that imagine that are think I number given before versus PCD will in the I'd be double-count all the two fond before. I larger that to out of. impact not that probably

portfolio, offset trying a looking be to reserve. right going environment. at to way not PCD the entire we I calculation regard. is smaller portfolio some would in the just probably best because it their this through against handle through sheer somewhere by adding our away started provisioned I $XX delineate in give of if the again million based economic number again of try looking might guess be different, are and of under now could $XX of how in two could numbers a be get be between loans the to different same estimate that I the be it's mean but would that's population I reserve very doesn't million, to moment much mean, best to their against going time at what smaller, day So trying probably right on you probably versus one be you're that reserve we That's right are. those

Catherine Mealor

non-PCD both and the will in included the of piece is And and that twice. PCD be piece that the kind

Phil Mantua

that's just Yes yeah, best are much reserve right at how fall it you're is, against going broader level it, sure se still from is overall of at into estimate point. looking our to exactly, per we this now because ebucket a not

Catherine Mealor

Okay. That's super helpful.

have million have then million requested. then deferrals two slide the guess the that $X.X -- And been there’s approved and have thank Okay, is page last payment of about question you. talked guess I million in I you [Indiscernible] on just been you EURXXX deck, my $X.X --

the that as really So think you of does deferrals Thanks. the quarters? granted how to these of weeks? that's as over are couple impact you that does the can you then, and incremental these increase, how the the question will that play we think payment I -- over deferrals are your be case, guess talk if continue difference next reserving to loan reserve continue is And about do couple into your next

Dan Schrider

numbers -- in whether Catherine, hasn't those the million the versus process there, modifications those Dan. two $XXX granted form determination modification many determined and at or difference but as will been is in cases, and the you will that those assets so which some is or point, what of I think treated are difference request those reserve hit is that delta it, assets The that this been granted or have not. be going it our don't be be, within to to differently a will there In how modified those they has calculation. been

those coming by I determine credit look on other what a the and think digging a do into matter like they credit it's side. out of just basis from

So think there more there related is impacts. the overall terms be I of work done to in reserve

Catherine Mealor

Okay, helpful. thank you. that's Great,

Operator

go [Operator Instructions] Our & with Scattergood. next from Boenning Zwick Please ahead. question come will Eric

Eric Zwick

Maybe of first or curious there has a with constant tailed I'm just period follow-up I'll weeks? was changed, or recent it over you're on that question. -- remained in request pace of if last of deferral or kind that kind seeing sped has the days off up it start has that

Dan Schrider

a the they're clients through a probably sure PPP So I process have And I But think that while it's think deferral getting at But the request. process. pretty making their line time, since pretty working on been, the you working activity. immediate of stable. imagine, of obviously as end there stable lot on a place of been the in same on was front lot been it's program time might

Eric Zwick

kind applications, that's approved. maybe had, you PPP good And segue Thanks. of the a X,XXX to programs X,XXX about

not or or those do or of applications round of you status to you accept waiting those just X,XXX the for the today? any submitted any the are continue funding what's reason for So remaining second of

Dan Schrider

Yes, those reason we herculean is that program I'll around process did. funding didn't dedicated the more type we right of they folks to a effort more the We've color you out. little why did XXX give to PPP only ran do and really the there. got through get The

about prepared that hopefully, come as when portal. additional maybe to out. running and through that already active geared so diligently really up just we've But applications all about phase these well is our we if in but get don't as gets the applications next through all know so funding approved, it's the I house work And consider may -- will remaining

Eric Zwick

have that That makes you sense. remaining applications any will into or meet to those be requests? have you the of insight enough there Do whether funding of kind confidence all

Dan Schrider

great -- unable making that is they country question. Phase that have This week the many were probably get the many through. applications is sense a that up is That's to gearing and across X banks spent last sure for our that the

go going the kind everybody changes seemed gearing because probably few daily next expected. days, than what a guess spent faster like is what phase, to the our So much that this money the is to with first up SBA we of

program and same go pretty it's the change the application, don't they fast. then to if So going it's probably

that up. should it's those as is that are hopeful of we're they dollars how but significant get remaining just terms at so -- quickly the not this So a point, to best eaten as of in resources, the there we front-end be applications adequate can quantify matter

Eric Zwick

rate moving XX.X% about to is effective remaining to due any of there in you additional back level? or benefit that Understood. Cares expect the Act the rate, And go tax then to would provision XQ tax to kind

Phil Mantua

rate this back is level this I normalized a go to Eric, from expect this forward. to point tax Phil. Yes would more

Eric Zwick

of forward? the based the level how of are you line XQ on management trajectory terms The then wealth trying there, think are management forward. that under item rate the -- and levels in. about of just result a But just the just kind thinking in value of the months maybe the me, and the many so Okay in a two line that of to assets or that's of RPJ last run average about going going have fees value month and a to whether from one another market reminder, had put off period-end

Dan Schrider

Yes, believe. billion Eric, I'm $X.X around to the the somewhere end think quarter $X.XX to quarter. declined of from looking quarter my billion. I at from for I about AUM AUM the

implications to marketing and out about RPJ. revenues additional $XXX And decline decline the that's million in of -- added market part, $XXX,XXX. terms the revenues netting that's in decline value to front of the outside just balance that true were in So most of the relative netting for the offsetting an

Eric Zwick

Okay.

those reflected of decline in numbers. So, most that is

it from the that's to stays go have maybe here, least you if at where flat, market equity it's and guys month to obviously market know should there so flat, if tough it of up but stay question. is big RPJ the where of So kind obviously were it potentially another

Phil Mantua

could that's Yeah, I reasonable it think those a not that's think really knowing I to a what look exactly reasonable you else say, happen value, way to at look at it. potentially to as way

Eric Zwick

thank you today my questions taking Well, for Excellent. guys.

Operator

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

Dan Schrider

participating calls, everyone But to so hope with your as to importantly, thanks and and your move call at most through we safe this feedback welcome time. you, we our comments continue difficult Thanks healthy you stay season that email sandyspringbank.com. these Thank Grant, for please ir on today. We of again.

Operator

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

disconnect. may You now

Sandy Spring Bancorp (SASR) 24 Apr 202020 Q1 Earnings call transcript