SASR - Earnings call 3 2023 | Sandy Spring Bancorp, Inc.

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Operator

Hello, and welcome to today's Sandy Spring Bancorp, Inc. Earnings Conference Call and Webcast for the third quarter. My name is Jordan, and I'll be coordinating your call today. [Operator Instructions] I'm now going to hand over to Dan J. Schrider, President and CEO, to begin. Dan, please go ahead.

Daniel Schrider

Jordan. Thanks, and Bancorp's joining quarter performance everyone, discuss call of you Spring Sandy for thank afternoon, our for to XXXX. Good the third my Financial Dan Phil Administrative General Officer. is Schrider, I'm Chief here This and Counsel and Mantua, and Officer; by Chief Aaron Kaslow, joined colleagues

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

moving from Before questions, to we then covering quarter customary your statement. highlights will harbor the get the give Aaron and started safe

Aaron Kaslow

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

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

Daniel Schrider

commercial comes as how will this this and to economic we month, of those pleased report we we're enter improving the These greater make to and banking they And secure bank of also gains want uncertainty. bank, digital give for our credit add season not future. base And important they our for and pave base. quarter, last moving us as way our growing client to expanding continue of more sophisticated, clients and performance the more Thanks, to some well our to preparing and control quality our reducing are them showing This to fronts. our it when user-friendly on most as on platform that launch core noncore our with a on platform. to Between are such client momentum, easier that Aaron. included When estate you on client key seamless spoke results account improved reliance very highly with quarter, all but base our that X,XXX to this us. This account underscored X we strong pressing remains platform only to today online in opening enhancement impressive achieved bank. metrics, the our liquidity months the just launched ratio priorities over ago. bankers expand concentration funding, talented and an we I'm products, We're over as growth new heels representing we competitive deepen clients real of and today, X% additionally, our now process, funding. And needle we a to opening loan-to-deposit

and us. we're confident continue we're growth seeing So gaining traction to opportunities unlock already investments results, additional for these will and

compared $XX.X diluted or income. Current to $XX.X settlement of the net pension quarter million ended quarter review million Today, the reported expense the for linked lower $X.XX common XX quarter for quarter diluted the financial third quarter, net $X.XX of coupled diluted third for diluted share decline share XXXX. income credit or core let's we $X.X net associated a losses $X.XX diluted million and plan, or $X.X $XX.X second the lower the per company's XXXX. credit ended of expenses, and diluted net $X.XX in losses million was provision funded $X.XX $XX.X common quarter's share interest million The $XX.X quarter onetime compared with of of and disclosed that, with interest for and for million the quarter. share prior with quarter common directly earnings million a per common to prior to per year salaries share lower common million offset September the current for increase the previous portfolio So expense core $XX.X in by the share marketing pension termination attributable for benefit for $XX.X quarter was or per quarter per earnings income. The were per the employee XX, results. compared current income the result and compared net previously income The reduced to or or of the result in in to previous common provision September to $X.XX quarter the was quarter million compared the lower loan

increases the probability the commercial were of a individual was in adjustment provision reduced which by to quarter's result few related recession. offset on relationships, qualitative This primarily a of lending partially reserves

production stable current at to billion as September unfunded in loan $XX.X portfolio the increased due loans into the estate XX, million X%. Residential mainly a or XX, reduced $XX.X June construction remain loans billion lines sheet. by credit. Shifting of higher production of during million and the the million due to at to the XX. migration $XX commitments portfolios or at Overall, $XXX previous mix at million quarter-over-quarter remained the mortgage billion funded commercial production $XX.X Total loan mortgage company X%, the result of the June compared loans $XXX,XXX and loan XX% second $XX.X million XXXX. unchanged portfolio. billion a $XX yielding This funded balance relatively quarter. the utilization portfolio. of of quarter $XX of million, grew to to and residential Investor commercial $XXX $XXX to or unchanged, by million totaled year. Total compared business Additionally, production. declined quarter, relatively its compared X% loan in commercial for yielding Commercial Total $XX.X loans $XXX the million, to assets permanent business declined lines reserve in real in million compared commercial decline loans ADC $XX.X in real remained owner-occupied or to estate

Given between economic the per softer of loan over production $XXX expect demand as million fall of million a result we the funded to and couple quarter environment, next quarters. rate both and loan $XXX

to supplemental on focus the loan deposit of deposit activity. Pages of on Total The our loan X% estate deposits XX. or to the demand provide portfolio estate composition at $XXX.X $XX.X detail million real more and retention portfolios. D.C. compared funded commercial closely increased side, appropriate deposits. composition June granularity in monitoring of our on billion to continue XX through our core billion acquisition real we level commercial While determine and XX markets to the and and loan we're the growth Baltimore. Shifting $XX deck urban specific of

the million reduced million, decrease in our partially respectively. million declined and increased increased X%, million and by $XXX.X interest-bearing which in Growth categories During offset noninterest-bearing $XXX.X time we the or decrease total market core deposits or funding by $XXX.X million million $XX sources this in X%. time savings period, and deposits as driven while accounts deposits, money broker reliance deposits were These on $XXX.X accounts. wholesale by interest-bearing deposit increases was $XXX.X

quarter-over-quarter represented of XX% XXX% declining deposits, reflecting from of continued XXX% compared deposits at broker or in deposits June The during total uninsured excluding loan-to-deposit of increased $XXX.X the at deposits. million September and XX% total the total X% stability core XXXX. Total deposit a deposit linked XX approximately So September ratio base. growth XX% to quarter, in to the deposits at quarter were resulted the XX, XX

which reciprocal FDIC that our deposit insurance continue would insurance As for exceed to limits. arrangements I quarters, shared provide deposit prior in otherwise we deposit offer customers accounts

diversified $XXX.X to as well or grew and the decreased $XXX,XXX $X.X cash fourth first quarter money was equivalents result quarter XX% fees, breakdown by portfolio retail in and gain quarter length of which income to no is During banking Fed XX well the the XX, XX, you more the majority XX.X advances. representing deposit quarter. Income and $XXX.X deposits. Total a can supplemental BOLI mortgage or compared grew X% by unpledged end wealth reciprocal industry by $X.X remained Slide years, total $XXX.X driven X% concentration on increase partially and deposits loans uninsured at our retail an unchanged at linked provides deck, to a increase noninterest-bearing the compared income contingent September client. Likewise, million, higher million accounts. earlier. Noninterest which received the company's quarter, to portfolio deposit as in of the $X.X quarter. assets and deposit securities billion X% totaled the compared the X% core average the at the strong funding million. balances the of deposit quarter of quarter lending-related I reduction available and of supplemental $X.X program outstanding million. Slide cash levels totaled market compared management FHLB third a million in to single XX, relationship on management were the or decrease the June of single of activities single of of growth funds, is Future of management of FX increased under deck million by funding length of XX% average bank term no borrowings, quarter, or revenue cash fall in With is and by previous Wealth a years, end. At mortality offset color million by commercial income September deposit funds to XXXX, $XXX in to million X% linked of XX. accounting XX% at of mentioned a of $XX the The of the prior driven income mortgage portfolio, due the million which million of $XX.X quarter's total $XXX,XXX deposits. At our primarily quarters. book. deposit billion, investment core increased XX from and ended represents $XX $XXX,XXX a mortgage for quarter current $X second our total XXX% more expected for XX higher was with or The combination see X.X the lower client consists and increased With an or in $X.X year to September million compared program term through since between borrowings linked declined through by FHLB Fed's September liquidity, bank borrowings and an balance represents and base XXXX of with the than total proceeds accounts

second the X.XX% For quarter net of of interest XXXX, third quarter XXXX. the the for the X.XX% of was compared XXXX, margin quarter and X.XX% third to for

we of expectation excess margin be X in quarterly continues on accounts. fierce margin deposit rate for the similar XXXX. year of year-end per last linked expense basis compared clients million is on yield came competition quarter, potentially or further the linked basis the would first market quarter resulting increased or funds of rates, look to paid and no on basis cuts for rest XX compression XX% interest-earning more XX the $X.X the quarter to fourth will margin one X any at compared rose while then high XXXX. Noninterest the maintain in This noninterest-bearing expansion the shared of basis anticipate Fed Compared rate interest-bearing and out points of quarter, X.XXs to in X% month margin September quarter throughout predicated margin quarter. We As XX points, the to the in impacted points liabilities million the or moving points, level quarter in of by a bump high X.X%. of the before assets increased for prior $X.X XXXX. to compress We increases the the basis points. The and and X

previous settlement staffing quarter quarter stated included benefit with I included adjustments. of of pension $X.X onetime plan. defined the earlier million In this a expense associated expense $X.X the to severance-related termination million call, related our in As the

salaries, from items these expense excluding with and associated noninterest Total benefits previous driven by employee lower $X.X million So or marketing. expense the current quarter, and X%, declined by expenses

be to are the of planning core The of being expected will GAAP the related recognized. for currently related run for costs our costs than XXXX efficiency and as ratio current quarter on XX.XX% compared costs, to year-over-year period expectation to Excluding quarter the expense and with quarter levels have more part growth process XX.XX% the increase annual revenue are pension non-GAAP future. in our ratios second some for X% non-GAAP by related settlement XXXX capitalized basis. The prior spend million. the include to totaled as was net noninterest quarter efficiency and certain costs pension initiatives by expenses evaluated $XX.X severance in technology impacted overall we approximately rate excluding expenses XX.XX% expenses and additional and for current no third X% in third to XXXX quarter. of the as declines invest a expense Both year been the of continue negatively the to fourth

So time pressure, yield well environment using we capabilities recognition as expands. the normalizes when comes to of will investments the while at the positioned curve digital rate inopportune our shape the be and technology under the revenue of newly economy is improves, grow an introduced

loans credit basis XX, June The for and common XXXX X of quarter. risk-based of at third September million nonperforming and XX of of of like of At or X.XX% in a end Financial the company I'd total Tier March nonperforming $X.X and to $XXX,XXX X.XX% to retire to compared basis ratio loans XX, level totaled indicate quarter same current XX a of of capital X.X% regulatory that charge-offs of XX.XX%, second XXX% credit amounted remain losses outstanding Overall, to the we net during of had quarter to ratio allowance stable of quality. the XX, to XX uncertainty. for At So X of risk-based points the the last a capital ratio this million recoveries basis was of compared quality points nonperformers to loans year to for million remained minimum will at let's X points of net September loans million our to XXXX. Total the ratio September quarter. mandated economic before XX.XX%, or period the XXXX. to quarter all $XXX.X move a bank prior compared XXXX. made XX for Tier stable These credit month. in million loans leverage and $XXX.X compared of Officer, at outstanding continue total and to as $X.X million was $XX.X million and at questions, quarter of shift credit quality nonperforming compared from of $XX.X excess Tier a loans the XX.XX%, and a of ratio Phil coverage ratios Mantua, the risk-based previous acknowledge we these the ratio equity Chief the requirements. And announcement leadership last your end XXX% $XX.X

we we know want throughout the growth successor. tenure our an interviewing XX-year instrumental congratulations our Phil's extend Phil, for and sincere in you As appreciation all has he role call, to and actively all on and are played to his

can So please that, move question. stay tuned. And we with our Jordan, to first

Operator

from comes Our Russell first Gunther question Instructions] Stephens. [Operator of

Russell Elliott Gunther

I to balances. on wanted start loan

quarters down for we next funded when in to past few. So be coming terms couple What guideposts be of the you a to are improving, hit the in should where we've production of wholesale been see? the the need down, do looking we able bit hear what for on I loan funding might more switch the growth. net Deposits to more but you is from are

Daniel Schrider

as targeted in couple we've kind Dan, last were improving might the Yes. funded we match position, of quarters, chime we've of of on done. is Russell, and this as to production kind liquidity well. The Phil working loan which runoff

appetite loan is production higher now. $XXX Our funded that million than for

rationally demand a and of more function that really is priced. it's demand think of I

commensurate demand -- players there economy out probably yield million that would in the So funded growth which the softened really bank are we could quarter. today's of some $XXX demand, $XXX at still the is a about pricing to side curve. uncertainty million But are in and today net move production, smaller on with not

loan increase And picking the as production. so that today as spots. we're soon see in our to we're we And prepared availability funded market,

Russell Elliott Gunther

Okay. That's Dan. very color, helpful

gears to there. the outlook appreciate Just I the switching margin.

date, cuts the you? not rate of do NIM, hike? beta ask kind that, think higher contemplating? you to similarly to what mean would something a funding then I the currently know you're how And Fed about that's questions, Given absent And

Philip Mantua

I point the next makes basis anticipated about Yes, quarter current Russell, Phil. a XX absence of move the X. whole this NIM don't goes lot thereof where is really in difference that, really that thinking or in next the know or

just deposit see on in to We we on the have on pulled now rates in and of a that currently already some would end. terms that experienced we're having of growth in back the pickup offering side. high categories like nice the growth

I a by to possibility been months. think CD bit even try whether So X-month XX basis of at making pulled and it face not completely for in preserve number offering, to we We've a running a of an can that other X.X% little that least we CD back Fed test have points for of and margin example, the was see here, move. or the of the things

into quickly follow So as guidance of looking that going pickup, X commented like being accelerated the without X we we be Fed double points as to pretty else to cut along that takes on past I that think rates we the can won't margin high that of chunks in X.XXs the be anything would as how cut pickup a from on down, XX consideration. And which the nearly either XX. standpoint they to because I way into more be be when quick and as we've on mentioned up. way more to it as way that think quarter-over-quarter. Like it from the Dan clearly the here they saw and that decide of think suggested standpoint, way, to And the saw aggressive we all kind then what on in his in what depends they might 'XX, into X cut to relates on basis like probably if up, expansion that X I comments, what downward what try then And certainly, trend. to

Russell Elliott Gunther

me expense then on side the And last one just for things. of

if XQ, this mean result saves. but quarter, Sorry it, I getting a on cost I missed the your thoughts great

beyond expect of you end an digital online? how the inflationary to type just 'XX but going comes do think you bigger this know step-up from what directionally noninterest expense I should transformation up tech does forward? just picture, And Just see of you're rate? growth working we through perhaps Or that step

Philip Mantua

good Ross, Yes, question.

-- then that's that related a at towards cost And that in shouldn't the board coming so the is the things put and point into probably quarter well on technology And piece addition is what's to basis, then part reoccur fourth to here motion X% inflationary just we are probably the that of the guided worth we of ongoing to quarter-to-quarter. $X from as about million CapEx basis where relative $X looking beyond. doing is as with relates another as the about that, the that in And on bringing into million initial run quarter but the on and that been which to quarter, probably in just to rate into XXXX million. this, a piece what's rate element on, there run fourth fourth $X.X That costs X% year-over-year XXXX. kickoff,

So that's consideration. into been taken

Operator

of Piper Sandler. from comes Whitman Casey question Next

Casey Whitman

side. the Maybe Just going margin. the to we if gears just to asset back switch

where of kind the of was loan coming month you or where on it new ballpark is production can September? First, in

Philip Mantua

Yes, be glad to. I'd

was here. that months around been all average production a of month at So of September for X.XX%, pricing the yield overall, has level commercial it and during on couple

that take it to And about or price we are variable see or growth again, the XX% XX% for would vein. of that that would levels appropriately those rate that floating willing production we same to given in with on to anticipate, in to was at nature. And the production want like so that, we

Casey Whitman

margin the just us side, the we can repricing sort rate loan you can your sort XXXX? the to walk maybe environment through to expect of for see static quarterly expectations so to in of get And on

Philip Mantua

Yes.

the the asset what to help margin. on would So the to X basis X to feed that it side, relates points

X On pickup would points the the and about and XX then probably loan see side, X if a quarter-by-quarter the beyond, next be points we basis. probably it margin into basis -- on of similar basis probably quarter to we fourth a quarter in X look the to to

Casey Whitman

All gears, buybacks a switching your stabilize the your the as outlook, just right. there? for get more aggressive price? you just what for Or And stock maybe bit it growth then given environment take what's and appetite would to current at

Daniel Schrider

Yes. this Dan. Casey, is

next the looking sure feel regard we time more continue mentioned we last quarters as with out making forward a environment. of do today authorization to as to of think and and have I couple there, it's the function the confident credit an probably we we

become I of at So with world a say, -- out make just here sitting uncertain there's uncertainty moment, the lot more It's would there. events.

And in so I the is feel But pretty right where and think run short particularly now. we we're important. could different be capital trading at active,

Casey Whitman

back, this loan with Obviously, that And how going but outlook? outlook just into thinking ratio. have of play you're this And about -- loan quarter, you growth down kind the a do came kind of does comfortable where spot the deposit running? that that just Understood. is

Philip Mantua

is Phil. this Yes,

we are XXX%. where right around comfortable very we're today, hovering we're think I

the we want couple manage quarters would time further it immediately But being as current down the forward probably in any of in not the think more I mid-XX% move any out. -- thereafter, and into not in again, time range. quarter to we

of So otherwise I talking -- probably kind the about it to we level. margin would XXX% you and see around think around staying were what just expect wise XXX%

Operator

next Our comes Mealor of question Catherine from KBW.

Catherine Mealor

gave, Dan. you wanted to expense on a clarifying I quick question the just ask guide

said mean an for that Or of I expense you number? thought included 'XX it expense? pension growth off So you you X% 'XX. the X% said in when to operating did

Daniel Schrider

out Yes, yes. expense number... the netting was pension It

Catherine Mealor

Great.

Okay.

-- I then the ] -- that take don't all was it [ up out number. to just want grow and right. So XXX that's No, wondering to I

Daniel Schrider

take $XX this away and million then the on for pension number. 'XX, year, are that rate X% to and apply which from base from roughly the costs X% severance a to want growth the You

Catherine Mealor

Great.

Okay.

to are just still to And other depending you on with negative of where things any still you a give relative things Are revenue go that -- how your is there Okay. operating the potentially leverage -- could there the and margin. that's year expense still the wait us seems kind Is on see challenging side? there revenue to year? pull to do really next rate we operating need we leverage just better until into is can back get of -- positive Or environment really just a mood.

Daniel Schrider

Yes. turn areas, continue reality. always in performance But continued we tend will But all things branch little Catherine, at. have And don't a to are announced to there a come rationalization, rate to more think that we real certain those can -- looking environment time. to in we in between going take headcount look the anything I better today. is things of at

Philip Mantua

could was was planning I what Yes, that we suggesting call the we're think kind up. where would that we is disposal. comment kind end kind to the and consider other of of agree. all the some that's things puts different the of maybe that alluded process that's we're Dan and I part into mean going things -- in evaluating But all said early when our think done at takes, we think I I have might things of and the to is

Catherine Mealor

that we of loans. those then you're or you on give on as us Can then a some on couple just just you kind should well? loans commentary credits or seeing And are some seeing of be change credit, coming specific talked what that about criticized on classified any to aware quarter commercial this about incremental And stress? Understood. reserves seeing

Daniel Schrider

criticized Catherine. classified are nonevent, in trends Yes, still

flow as refer it to And That's is b***. back a then thus we still tenant estate a renew, be anything there the issues. conservative a don't, out, a I anything going on recognizing they -- could the think But you not you as like just far color, example. We're but are comes year in that some are a owner not that result, setting reserves. cash give I because loan to thematically. and bite I approach notified we're little if that real credit to that's seeing to gets a to aside one-off hate happening an seeing taking what

think is units suburban to we've a professional that office easier lot you importantly, If large floor minimal are type for a and as of about in with most a turn which talked urban predominantly little space areas with opposed office, our the about of book, number to us exposure plate mostly exposure.

the we're understand So for course in the in manage book I an reprices probably term. as think to we're than -- what is time standpoint and near that around of longer seeing risk higher rates over more that trying from occupancy in

it Our was think, up some home. the the at during very retail is pandemic, our pressure well when locked to when within continues weathered hospitality everybody portfolio, perform under I which CRE, largest pandemic extremely was exposure that portfolio, and also performed well the during

we're multifamily rates compared monitoring perm side continuing was absorption the -- some a repricing look what's have what to of then doing construction the portfolio coming with expected. and months at into that. And we those XX on getting XX, So same of out and that out to coming with ahead

out, stand those can behind but some and And that. getting got we've of are extended guarantors incredible that borrowers

the I think anything of course and dramatically drive our percentage So we there's realistic if the to through credit coverage in seeing not that be of of it's as us nonperformance end cycle, our that about over a concern dents levels, more but that, and scratches reserve time, like. gives we we're going a up

in job transparent past. have changing team is been as the a and be good we'll things the we see -- doing with continue but So to we you if

Catherine Mealor

one. And last ask if then Great. maybe I one could

nice What's it's was remix, from levels your flow kind shift but I the bit to as Just a on what's of to a year. where that deposit know, mix we've deposit -- your it in percentage the out? seen little earlier the on percentage see noninterest-bearing hard of gut know balances

Philip Mantua

this again. is Phil Casey, Yes,

I think, bad. my sorry, Catherine, I'm

growth I continue is the good run that term. there balance wholesale necessarily the off the down we additional now stabilized behind DDA growth lot not is short money to on deposits. If also to scheduled anticipate of of there's to a I'm don't we've like interest-bearing quarter we're piece current another run has scene we're of XX% think through off, think more which sure sheet, I those we to reengage see we the of But we remix the allow already where the kind million place. a in the much other the anything, brokered current remix of categories. million to around pretty XX%, the in because declining and $XXX from already levels that total $XXX your occurring -- going mature an not its question, to DDA confident had roll feel we're really plan good seeing and to still the that

So we and fairly then more good that's where stable. to landed anything related the we DDA. probably But remix again, and see feel about that's it's where

Catherine Mealor

Great. on All retirement, And right. congrats Phil. your

Philip Mantua

Thank you.

Operator

of next Davidson. Our Manuel comes Navas question D.A. from

Manuel Navas

your the on rate year, turn side? the in outlook any NIM growth the In for loan that kind difference of into assume does of next

Philip Mantua

funding as it at just relates the is this with think Manuel, I No, general point at Phil. that's well is to the implied really. not Maturity... No, this matching as moment. off guidance

Manuel Navas

that... all it. Got It's by driven

Philip Mantua

in repricing natural just there. It's Correct.

Manuel Navas

have of assume a assumption? beta look peak we kind kind NIM a deposit Okay. And that matches beta you Do of of that that guide? just out should with rough

Philip Mantua

deposits. as at mean, slower it the deposit of side. aspect Yes. terms has been would in forward the clearly, interest-bearing of say the pull here it's of terms much cost that movement the overall in a of in looking I I

because as earlier the So to that pull some remix our given I this again, back quarter-to-quarter to at well, the again of try to bps X desire And think my mentioned it I comments would control within funding of that about earlier. on X, side the rates. similar point, just on

Manuel Navas

No, to into that deposits. you're and off the That's of is, it kind great. was next some about going feeling lead you so on back of rates, sounds running like pulled my good brokered question easily

success back and to on you I'm rate on is the pulled So like what to. get trying still promotion seeing you're

Philip Mantua

got the to just out. of itself couple that's of Yes. here within still mean current play last kind practice weeks. I That's

that looking that foreseeable can behind the yes. way the see it at future, out, prove we to got So is that current we've thinking for we're the but

Manuel Navas

growth channel your -- the at savings With of driven kind been of last there I periphery couple in worked there's experimenting most? of [ deposit footprint the branches, growth, this RN with the CD over lot kind and quarters. the a channel What know been of outreach you've growth channels of has has and was different what best? ] your

Daniel Schrider

Dan. Yes. Manuel, is this

-- marketplace, about X,XXX balances the clients with in. client depositor But specifically I accounts front we earlier really some into reach of client bringing the through dollars the or that's tremendous used internal success some the out some that the in at of digital had quarter. prospective and We've And new has information blend course over outreach we to just the data launched our year. that. a same of think new year, not of online that it's new been that and data things. like generated the the we've that been to time, more heavy success half been kind affluent store we've and in and combine coming with had -- than to purchase it's client

the and probably from been branch piece. And commercial frankly, And of ever end the that's third be the the since bankers been who, biggest with follow-up. person would standpoint, digital the followed first then them. deposit that's And relationships so been has quite activities outreach SVB base. the Initially, what quarter much greater was but deposit those and in expanding failure connectivity and from a commercial follow-on our with activity to retention growth outreach

more but So additive. I would three one initiative, been have say all than it's

Philip Mantua

would high-yield savings has a at that date, been than non-advertised on basis. to add more is really that balances which also really that, I doubled growth, Manuel, Yes.

Dan and had been outlined, marketing significant of more that than any kind it's direct as -- type So advertised contact direct we still was success. of and special, of it kind

Manuel Navas

I color here. the really appreciate

lumpy, pipeline that's of over year? great. and I'm the kind you way know kind it's pipeline there Is commercial quantify On a Can lender kind growth there? is can deposit a there you that -- to something sure. of there overall of the -- piece, kind expected of into I Is next

Daniel Schrider

-- criticism bankers. to lenders this I forward commercial don't the bankers. not commercial And quantify look it to way think way of there's an we've from say, other is to gone as that I say a a we the think probably -- easy commercial to than that's

last, the not obviously, for and on the funding changed. focus -- the asset because was world years, several issue, been has Our growth an

have they so And done with shifting along focus a of tremendous asset and really deposit changing job to include generation. gathering,

terms and mechanisms expectations and and will in and So production. of pipeline built that's management -- incentive plans of overall continue, their been into reward that

going 'XX. as into not change we that's So to go

Manuel Navas

appreciate that. right. I All

stands base talent As comfortable that my feel as of banker through important among XXXX? with still now you Or it your last kind you it is behaviors an commercial question shifted at least do driver? acquisition that feel

Daniel Schrider

Yes.

and the C&I I expectations for not the relationships, behavior specifically, But but in think banking solid. looking also been in client we will really always be expand has in that will I help think the just folks in commercial wealth shift space. us

that make our for sure we're reasonable challenge doing level spoke to headcount maintaining expectation Now at fit of. that us overall the to is expense that Phil growth a while

I So to be have the to talent always open we good adding to organization. think

Operator

[Operator Next a question Stephens. Gunther Russell is from of Instructions] follow-up

Russell Elliott Gunther

on just was hoping we shared earlier, you seen and industry-wide. national your ask just have about your to some quarter is then in exposure hiccups asset credits commentary I this for thoughts I what the class some forgot today.

Daniel Schrider

do right We have participation book Yes. -- not do we a now.

helped but side. the all they bought deals is on are club that out million, vice $XXX of with participations banks flip in local north versa total we've just Our like

in but We have that sole about out of terms we're $XXX business. have SNC participations, put not active million in been

Operator

line. questions phone no on the We have further

back to So for closing I'll Dan remarks. any hand

Daniel Schrider

out. your we great for do Thanks, reach make more and things Jordan. you, please call, love Thank effective, today's we But and our afternoon. feedback, there's could everyone, if again so time, a have to call your joining for thanks

Operator

and today's Thank you joining. for gentlemen, call. this concludes Ladies

disconnect You your may lines. now

Sandy Spring Bancorp (SASR) 24 Oct 232023 Q3 Earnings call transcript