OLNEY, Md., Oct. 23 /PRNewswire-FirstCall/ -- Sandy Spring Bancorp, Inc., (NASDAQ:SASR) the parent company of Sandy Spring Bank, today announced net income for the third quarter of 2007 of $8.2 million ($.50 per diluted share) compared to $8.1 million ($.55 per diluted share) for the third quarter of 2006 and $8.2 million ($.51 per diluted share) for the linked quarter of 2007. Net income for the quarter includes after-tax merger costs of $0.2 million ($.01 per diluted share) for the acquisitions of Potomac Bank of Virginia ("Potomac") and CN Bancorp, Inc. ("County"), which were completed in the first and second quarters of 2007, respectively.
(Logo: http://www.newscom.com/cgi-bin/prnh/20010424/SSPRINGLOGO-a ) Net income for the nine-month period ending September 30, 2007 totaled $23.9 million ($1.50 per diluted share) compared to $24.6 million ($1.65 per diluted share) for the prior year period. Net income for the year-to-date includes after-tax merger costs of $0.9 million ($.05 per diluted share) for the acquisitions mentioned above.
Third Quarter Highlights: -- Net interest income increased 13% for the quarter and 9% for the year
to date over the prior year periods.
-- Noninterest income increased 16% for the quarter and 14% for the year
to date over the prior year periods.
-- Loans and deposits increased 21% and 17% respectively, compared to
September 30, 2006.
-- Net interest margin improved to 4.16% on a linked quarter basis.
-- Net income essentially equal to second quarter 2007 and third quarter
2006 -- Integration of Potomac and County acquisitions completed.
-- Repurchased approximately 55,000 shares of company stock at average
cost of $27.46 per share.
"Despite the upheaval in the mortgage market during the third quarter and the related uncertainty regarding the economic environment, Sandy Spring Bancorp had a solid quarter," said Hunter R. Hollar, President and Chief Executive Officer of Sandy Spring Bancorp. "Both net interest income and non- interest income showed meaningful improvement over the prior year. Our net interest margin improved to 4.16% for the third quarter (4.23% for the month of September), compared to 4.08% for the linked second quarter of 2007." "Although non-performing assets ticked up slightly from the second quarter, we believe that credit quality continues to be a strength of Sandy Spring Bank." "During the third quarter we completed the integration and systems conversions associated with our two recent bank acquisitions. With these efforts successfully behind us, our focus through yearend and into 2008 will now intensify on improving operating efficiencies and generating organic growth within our core bank divisions. In this regard, we began the initial stage of our strategic business improvement. Internal communications for this effort, named L.I.F.T. (Looking Inward for Tomorrow), are currently underway and we anticipate including more details and progress updates in future releases," said Hollar.
"We were able to take advantage of market conditions to repurchase approximately 55,000 shares of our common stock. We hope to continue our repurchase program as market conditions permit." Sandy Spring Bancorp's return on average stockholders' equity was 10.55% for the third quarter of 2007, compared to 14.06% for the same period in the prior year. Return on average assets for the third quarter of 2007 was 1.08%, compared to 1.24% for the third quarter of 2006.
For the first nine months of 2007, return on average stockholders' equity was 11.28%, compared to 14.64% for the first nine months of 2006. Return on average assets for the first nine months of 2007 was 1.10%, compared to 1.29% for the first nine months of 2006.
Review of Balance Sheet and Credit Quality Comparing September 30, 2007 balances to September 30, 2006, total assets increased 14% to $3.0 billion due mainly to the County and Potomac acquisitions together with steady growth in the commercial loan portfolio. Total loans and leases increased 21% to $2.2 billion compared to the prior year. The two acquisitions accounted for approximately 74% of the year-over- year loan growth. Excluding these acquisitions, the loan portfolio increased 6% over the third quarter of the prior year. This increase was comprised mainly of a 13% increase in commercial loans. Customer funding sources, which include deposits plus other short-term borrowings from core customers, increased 16% to $2.4 billion at September 30, 2007 compared to the prior year. Again, most of the growth in such funding sources was due to the two acquisitions. On a linked quarter basis, such customer funding sources decreased 8% compared to the second quarter of 2007. This decline was due primarily to intense market competition for deposits coupled with the Company's plan to use conservative deposit pricing to manage its liquidity position and net interest margin together with some expected deposit runoff from the acquisitions.
Stockholders' equity totaled $310.6 million at quarter-end, and represented 10.5% of total assets, compared to 9.0% at September 30, 2006. During the quarter, the Company repurchased 54,838 shares at an average cost of $27.46 per share. At September 30, 2007, 731,407 shares remained available for repurchase under the current authorization.
The provision for loan and lease losses totaled $0.8 million for the third quarter of 2007 compared to $0.6 million for the third quarter of 2006 and $0.8 million for the linked quarter of 2007. The provision for loan and lease losses totaled $2.4 million for the first nine months of 2007 compared to $2.5 million for the same period in 2006. The allowance for loan and lease losses represented 1.07% of outstanding loans at September 30, 2007.
Non-performing assets totaled $25.8 million at September 30, 2007 compared to $22.2 million at June 30, 2007 and $3.8 million at September 30, 2006. The increase over the linked prior quarter of 2007 was due mainly to one commercial loan totaling $2 million on which no loss is expected. The increase over the prior year also reflects one loan totaling $13.6 million that was put on non-accrual status in the second quarter of 2007. Management does not expect a loss on this loan, which is well secured.
Income Statement Review Comparing the third quarter of 2007 and 2006, net interest income increased by $3.1 million, or 13%, due primarily to continued growth in the loan portfolio and higher loan yields, which were largely offset by increased rates on interest-bearing deposits and an increased use of time deposits to fund loan growth. These factors produced a net interest margin decrease to 4.16% in 2007 from 4.25% in 2006.
Noninterest income increased to $11.1 million in the third quarter of 2007 as compared to $9.6 million in 2006, an increase of 16%. Service charges on deposit accounts increased 58% due primarily to higher overdraft fees while Visa(R) check fees increased 21% reflecting continued growth in electronic transactions. Trust and investment management fees increased 9% due primarily to higher assets under management.
Noninterest expenses were $25.9 million in the third quarter of 2007 compared to $21.7 million in 2006, an increase of $4.2 million or 19%. This increase was driven mainly by operating expenses of Potomac and County together with an additional 28% increase in occupancy costs and a 34% increase in other expenses due to higher professional and consulting fees. Intangibles amortization increased $0.4 million or 51% as a result of the two acquisitions.
Comparing the first nine months of 2007 and 2006, net interest income increased by $6.3 million, or 9%, due primarily to continued growth in the loan portfolio and increased loan yields, which was offset in part by increased rates on interest bearing deposits and increased use of time deposits to fund loans. The net interest margin decreased to 4.10% in 2007 from 4.30% in 2006.
Noninterest income increased 14% for the first nine months of 2007 compared to 2006. Service charges on deposit accounts increased 39% due mainly to higher overdraft fees mentioned above while income from bank owned life insurance grew by 23% due to higher rates and insurance policies added from the two acquisitions. Visa(R) check fees increased 16% due to an increased volume of electronic transactions while fees on sales of investment products increased 9% over the prior year due to higher sales of mutual funds and growth in assets under management. Insurance agency commissions also increased 6% for the year-to-date over 2006 due to higher contingency fees and increased premium volume in the area of physicians' liability insurance.
Noninterest expenses were $74.5 million in 2007 compared to $62.9 million in 2006, an increase of $11.6 million or 18%. This increase was primarily the result of operating expenses of Potomac and County. Excluding the acquisitions, occupancy costs increased 19% and other expenses increased 29% due primarily to higher professional and consulting fees as mentioned above. Intangibles amortization increased $0.7 million or 33% as a result of the two acquisitions.
Conference Call The Company's management will host a conference call to discuss its third quarter and year-to-date results today at 2:00 P.M. (ET). A live Web cast of the conference call is available through the Investor Relations' section of the Sandy Spring Web site at http://www.sandyspringbank.com/. Participants may call 877-407-8031; a password is not necessary. Visitors to the Web site are advised to log on 10 minutes ahead of the scheduled start of the call. An internet-based replay will be available at the Web site until 9:00 a.m. November 21, 2007. A telephone voice replay will also be available during that same time period at 877-660-6853. Please use pass code #286 and conference ID #255770 to access.
About Sandy Spring Bancorp/Sandy Spring Bank With $3.0 billion in assets, Sandy Spring Bancorp is the holding company for Sandy Spring Bank and its principal subsidiaries, Sandy Spring Insurance Corporation, The Equipment Leasing Company and West Financial Services, Inc. Sandy Spring Bancorp is the second largest publicly traded banking company headquartered in Maryland. Sandy Spring is a community banking organization that focuses its lending and other services on businesses and consumers in the local market area. Independent and community-oriented, Sandy Spring Bank was founded in 1868 and offers a broad range of commercial banking, retail banking and trust services through 42 community offices in Anne Arundel, Carroll, Frederick, Howard, Montgomery, and Prince George's counties in Maryland, and Fairfax and Loudoun counties in Virginia. Through its subsidiaries, Sandy Spring Bank also offers a comprehensive menu of leasing, insurance and investment management services. Visit http://www.sandyspringbank.com/ to locate an ATM near you or for more information about Sandy Spring Bank.
For additional information or questions, please contact:
Hunter R. Hollar, President & Chief Executive Officer, or
Philip J. Mantua, Executive V.P. & Chief Financial Officer
Sandy Spring Bancorp
17801 Georgia Avenue
Olney, Maryland 20832
1-800-399-5919
E-mail:
Web site: http://www.sandyspringbank.com/ Forward-Looking Statements
Sandy Spring Bancorp makes forward-looking statements in this news release and in the conference call regarding this news release. These forward-looking statements may include: statements of goals, intentions, earnings expectations, and other expectations; estimates of risks and of future costs and benefits; assessments of probable loan and lease losses; assessments of market risk; and statements of the ability to achieve financial and other goals.
Forward-looking statements are typically identified by words such as "believe," "expect," "anticipate," "intend," "outlook," "estimate," "forecast," "project" and other similar words and expressions. Forward- looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made. Sandy Spring Bancorp does not assume any duty and does not undertake to update its forward-looking statements. Because forward-looking statements are subject to assumptions and uncertainties, actual results or future events could differ, possibly materially, from those that Sandy Spring Bancorp anticipated in its forward-looking statements, and future results could differ materially from historical performance.
Sandy Spring Bancorp's forward-looking statements are subject to the following principal risks and uncertainties: general economic conditions and trends, either nationally or locally; conditions in the securities markets; changes in interest rates; changes in deposit flows, and in the demand for deposit, loan, and investment products and other financial services; changes in real estate values; changes in the quality or composition of the Company's loan or investment portfolios; changes in competitive pressures among financial institutions or from non-financial institutions; the Company's ability to retain key members of management; changes in legislation, regulations, and policies; and a variety of other matters which, by their nature, are subject to significant uncertainties. Sandy Spring Bancorp provides greater detail regarding some of these factors in its Form 10-K for the year ended December 31, 2006, including in the Risk Factors section of that report, and in its other SEC reports. Sandy Spring Bancorp's forward- looking statements may also be subject to other risks and uncertainties, including those that it may discuss elsewhere in this news release or in its filings with the SEC, accessible on the SEC's Web site at http://www.sec.gov/.
Sandy Spring Bancorp, Inc. and Subsidiaries
FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share data) Three Months Ended Nine Months Ended
September 30, % September 30, %
2007 2006 Change 2007 2006 Change Profitability for
the period:
Net interest income $27,212 $24,122 13 $77,426 $71,151 9
Provision for loan
and lease losses 750 550 36 2,369 2,545 (7)
Noninterest income 11,130 9,590 16 32,909 28,831 14
Noninterest expenses 25,899 21,694 19 74,472 62,878 18
Income before
income taxes 11,693 11,468 2 33,494 34,559 (3)
Net income $8,181 8,122 1 $23,895 $24,557 (3) Return on average
assets 1.08% 1.24% 1.10% 1.29%
Return on average
equity 10.55% 14.06% 11.28% 14.64%
Net interest margin 4.16% 4.25% 4.10% 4.30%
Efficiency ratio -
GAAP based *67.55% 64.35% 67.50% 62.89%
Efficiency ratio -
traditional *62.30% 59.20% 62.51% 57.98% Per share data:
Basic net income $0.50 $0.55 (9) $1.50 $1.66 (10)
Diluted net income 0.50 0.55 (9) 1.50 1.65 (9)
Dividends declared 0.23 0.22 5 0.69 0.66 5
Book value 18.92 15.78 20 18.92 15.78 20
Tangible book value 13.17 14.15 (7) 13.17 14.15 (7)
Average fully
diluted shares 16,508,922 14,915,454 15,980,035 14,920,255 At period-end:
Assets $2,965,492 $2,598,458 14 $2,965,492 $2,598,458 14
Deposits 2,280,102 1,947,850 17 2,280,102 1,947,850 17
Loans and leases 2,201,599 1,815,490 21 2,201,599 1,815,490 21
Securities 452,195 551,138 (18) 452,195 551,138 (18)
Stockholders'
equity 310,624 233,693 33 310,624 233,693 33 Capital and credit
quality ratios:
Average equity to
average assets 10.19% 8.90% 9.72% 8.89%
Allowance for loan
and lease losses
to loans and leases 1.07% 1.07% 1.07% 1.07%
Nonperforming assets
to total assets 0.87% 0.15% 0.87% 0.15% Annualized net
charge-offs to
average loans
and leases 0.16% 0.00% 0.07% 0.00% * The GAAP based efficiency ratio is noninterest expenses divided by net
interest income plus noninterest income from the Consolidated Statements
of Income. The traditional, non-GAAP efficiency ratio excludes
intangible asset amortization from noninterest expenses; excludes
securities gains from noninterest income; and adds the tax-equivalent
adjustment to net interest income. See the Reconciliation Table included
with these Financial Highlights.
Certain reclassifications and restatements of information previously
reported have been made to conform with current presentation.
Sandy Spring Bancorp, Inc. and Subsidiaries
Reconciliation of GAAP-based and Traditional Efficiency Ratios
(In thousands, except per share data) Three Months Nine Months
Ended Ended
September 30, September 30,
2007 2006 2007 2006 Noninterest expenses-GAAP based 25,899 $21,694 74,472 $62,878
Net interest income plus
noninterest income-GAAP based 38,342 33,712 110,335 99,982 Efficiency ratio-GAAP based 67.55% 64.35% 67.50% 62.89% Noninterest expenses-GAAP based $25,899 $21,694 $74,472 $62,878
Less non-GAAP adjustment:
Amortization of intangible
assets 1,123 743 2,956 2,227
Noninterest expenses-
traditional ratio 24,776 20,951 71,516 60,651 Net interest income plus
noninterest income-GAAP based 38,342 33,712 110,335 99,982
Plus non-GAAP adjustment:
Tax-equivalency 1,447 1,677 4,096 4,618
Less non-GAAP adjustments:
Securities gains 22 0 28 1
Net interest income plus
noninterest income -
traditional ratio 39,767 35,389 114,403 104,599 Efficiency ratio - traditional 62.30% 59.20% 62.51% 57.98% Sandy Spring Bancorp, Inc. and Subsidiaries
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except per share data)
September 30 December 31
2007 2006 2006
Assets
Cash and due from banks $58,698 $42,558 $54,945
Federal funds sold 13,375 25,129 48,978
Cash and cash equivalents 72,073 67,687 103,923 Interest-bearing deposits with banks 483 317 2,974
Residential mortgage loans held for
sale (at fair value) 6,099 21,111 10,595
Investments available-for-sale (at
fair value) 196,138 261,645 256,845
Investments held-to-maturity - fair
value of $241,984 $278,415 and
$273,206, respectively 237,231 272,143 267,344
Other equity securities 18,826 17,350 16,719 Total loans and leases 2,201,599 1,815,490 1,805,579
Less: allowance for loan and
lease losses (23,567) (19,433) (19,492)
Net loans and leases 2,178,032 1,796,057 1,786,087 Premises and equipment, net 55,016 45,831 47,756
Accrued interest receivable 16,008 15,399 15,200
Goodwill 76,625 12,606 12,494
Other intangible assets, net 17,754 11,431 10,653
Other assets 91,207 76,881 79,867
Total assets $2,965,492 $2,598,458 $2,610,457 Liabilities
Noninterest-bearing deposits $453,536 $416,712 $394,662
Interest-bearing deposits 1,826,566 1,531,138 1,599,561
Total deposits 2,280,102 1,947,850 1,994,223 Short-term borrowings 298,083 356,563 314,732
Other long-term borrowings 7,793 1,896 1,808
Subordinated debentures 35,000 35,000 35,000
Accrued interest payable and other
liabilities 33,890 23,456 26,917
Total liabilities 2,654,868 2,364,765 2,372,680 Stockholders' Equity
Common stock -- par value $1.00;
shares authorized 50,000,000;
shares issued and outstanding
16,420,911 14,811,974 and
14,826,805, respectively 16,421 14,812 14,827
Additional paid in capital 85,982 27,349 27,869
Retained earnings 211,787 191,884 199,102
Accumulated other comprehensive
income(loss) (3,566) (352) (4,021)
Total stockholders' equity 310,624 233,693 237,777
Total liabilities and
stockholders' equity $2,965,492 $2,598,458 $2,610,457 Certain reclassifications and restatements of information previously
reported have been made to conform with current presentation.
Sandy Spring Bancorp, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
Three Months Nine Months
Ended Ended
September 30, September 30,
2007 2006 2007 2006
Interest income:
Interest and fees on loans and
leases $39,789 $32,686 $112,756 $92,831
Interest on loans held for sale 234 222 701 514
Interest on deposits with banks 590 4 1,081 18
Interest and dividends on
securities:
Taxable 3,211 4,090 10,832 10,490
Exempt from federal income taxes 2,468 2,839 7,776 8,783
Interest on federal funds sold 666 177 1,720 432
Total interest income 46,958 40,018 134,866 113,068
Interest expense:
Interest on deposits 15,898 10,378 45,263 26,846
Interest on short-term borrowings 3,198 4,943 10,265 13,342
Interest on long-term borrowings 650 575 1,912 1,729
Total interest expense 19,746 15,896 57,440 41,917
Net interest income 27,212 24,122 77,426 71,151
Provision for loan and lease losses 750 550 2,369 2,545
Net interest income after
provision for loan and lease
losses 26,462 23,572 75,057 68,606
Noninterest income:
Securities gains 22 0 28 1
Service charges on deposit accounts 2,999 1,904 7,937 5,702
Gains on sales of mortgage loans 738 718 2,149 2,049
Fees on sales of investment products 765 783 2,471 2,264
Trust and investment management fees 2,365 2,164 7,007 6,476
Insurance agency commissions 1,294 1,406 5,422 5,132
Income from bank owned life insurance 720 591 2,097 1,711
Visa check fees 730 603 2,037 1,750
Other income 1,497 1,421 3,761 3,746
Total noninterest income 11,130 9,590 32,909 28,831
Noninterest expenses:
Salaries and employee benefits 14,654 12,622 41,864 37,823
Occupancy expense of premises 2,946 2,175 8,072 6,340
Equipment expenses 1,631 1,384 4,734 4,112
Marketing 359 1,160 1,563 1,973
Outside data services 870 872 2,873 2,486
Amortization of intangible assets 1,123 743 2,956 2,227
Other expenses 4,316 2,738 12,410 7,917
Total noninterest expenses 25,899 21,694 74,472 62,878
Income before income taxes 11,693 11,468 33,494 34,559
Income tax expense 3,512 3,346 9,599 10,002
Net income $8,181 $8,122 $23,895 $24,557
Basic net income per share $0.50 $0.55 $1.50 $1.66
Diluted net income per share 0.50 0.55 1.50 1.65
Dividends declared per share 0.23 0.22 0.69 0.66 Certain reclassifications and restatements of information previously
reported have been made to conform with current presentation.
Sandy Spring Bancorp, Inc. and Subsidiaries
Historical Trends in Quarterly Financial Data
(Dollars in thousands, except per share data)
2007
Q3 Q2 Q1
Profitability for the quarter:
Tax-equivalent interest income $48,405 $47,378 $43,179
Interest expense 19,746 19,815 17,879
Tax-equivalent net interest income 28,659 27,563 25,300
Tax-equivalent adjustment 1,447 1,364 1,285
Provision for loan and lease losses 750 780 839
Noninterest income 11,130 10,873 10,906
Noninterest expenses 25,899 24,959 23,614
Income before income taxes 11,693 11,333 10,468
Income tax expense 3,512 3,164 2,923
Net Income 8,181 8,169 7,545
Financial ratios:
Return on average assets 1.08% 1.10% 1.12%
Return on average equity 10.55% 11.45% 11.96%
Net interest margin 4.16% 4.08% 4.07%
Efficiency ratio - GAAP based * 67.55% 67.33% 67.62%
Efficiency ratio - traditional * 62.30% 62.26% 63.01%
Per share data:
Basic net income $0.50 $0.51 $0.49
Diluted net income $0.50 $0.51 $0.49
Dividends declared $0.23 $0.23 $0.23
Book value $18.92 $18.62 $17.51
Tangible book value $13.17 $12.76 $13.11
Average fully diluted shares 16,508,922 16,069,771 15,400,865
Noninterest income breakdown:
Securities gains $22 $4 $2
Service charges on deposit accounts 2,999 2,630 2,308
Gains on sales of mortgage loans 738 773 638
Fees on sales of investment products 765 906 800
Trust and investment management fees 2,365 2,361 2,281
Insurance agency commissions 1,294 1,438 2,690
Income from bank owned life insurance 720 693 684
Visa check fees 730 717 590
Other income 1,497 1,351 913
Total 11,130 10,873 10,906
Noninterest expense breakdown:
Salaries and employee benefits $14,654 $13,776 $13,434
Occupancy expense of premises 2,946 2,709 2,417
Equipment expenses 1,631 1,501 1,602
Marketing 359 675 529
Outside data services 870 1,077 926
Amortization of intangible assets 1,123 1,031 802
Other expenses 4,316 4,190 3,904
Total 25,899 24,959 23,614
Sandy Spring Bancorp, Inc. and Subsidiaries
Historical Trends in Quarterly Financial Data
(Dollars in thousands, except per share data)
2006
Q4 Q3 Q2 Q1
Profitability for the quarter:
Tax-equivalent interest
income $42,000 $41,695 $39,372 $36,619
Interest expense 16,770 15,896 14,021 12,000
Tax-equivalent net interest
income 25,230 25,799 25,351 24,619
Tax-equivalent adjustment 1,625 1,677 1,499 1,442
Provision for loan and lease
losses 250 550 1,045 950
Noninterest income 10,064 9,590 9,395 9,846
Noninterest expenses 22,218 21,694 20,828 20,356
Income before income taxes 11,201 11,468 11,374 11,717
Income tax expense 2,887 3,346 3,279 3,377
Net Income 8,314 8,122 8,095 8,340
Financial ratios:
Return on average assets 1.26% 1.24% 1.27% 1.36%
Return on average equity 13.75% 13.93% 14.34% 15.26%
Net interest margin 4.14% 4.25% 4.30% 4.35%
Efficiency ratio - GAAP
based * 65.99% 64.35% 62.65% 61.64%
Efficiency ratio -
traditional * 60.85% 59.20% 57.81% 56.91%
Per share data:
Basic net income $0.56 $0.55 $0.55 $0.56
Diluted net income $0.55 $0.55 $0.54 $0.56
Dividends declared $0.22 $0.22 $0.22 $0.22
Book value $16.04 $15.92 $15.48 $15.21
Tangible book value $14.48 $14.30 $13.81 $13.61
Average fully diluted
shares 14,940,873 14,915,454 14,884,677 14,924,571
Noninterest income breakdown:
Securities gains $0 $0 $1 $0
Service charges on deposit
accounts 2,201 1,904 1,950 1,848
Gains on sales of mortgage
loans 929 718 549 782
Fees on sales of
investment products 696 783 763 718
Trust and investment
management fees 2,286 2,164 2,196 2,116
Insurance agency
commissions 1,345 1,406 1,618 2,108
Income from bank owned
life insurance 639 591 567 553
Visa check fees 631 603 612 535
Other income 1,337 1,421 1,139 1,186
Total 10,064 9,590 9,395 9,846
Noninterest expense breakdown:
Salaries and employee
benefits $12,695 $12,622 $12,730 $12,471
Occupancy expense of premises 2,153 2,175 2,039 2,126
Equipment expenses 1,364 1,384 1,412 1,316
Marketing 610 1,160 472 341
Outside data services 717 872 833 781
Amortization of intangible
assets 740 743 742 742
Other expenses 3,939 2,738 2,600 2,579
Total 22,218 21,694 20,828 20,356 * The GAAP based efficiency ratio is noninterest expenses divided by net
interest income plus noninterest income from the Consolidated Statements
of Income. The traditional, non-GAAP efficiency ratio excludes
intangible asset amortization expenses from noninterest expenses;
excludes security gains from noninterest income; and adds the tax
equivalent adjustment to net interest income. See the Reconciliation
Table included with these Historical Trends in Quarterly Financial Data.
Sandy Spring Bancorp, Inc. and Subsidiaries
Historical Trends in Quarterly Financial Data
(Dollars in thousands, except per share data)
2007
Q3 Q2 Q1
Balance sheets at quarter end:
Residential mortgage loans $439,091 $427,252 $404,177
Residential construction loans 154,908 154,444 144,744
Commercial mortgage loans 645,790 660,004 621,692
Commercial construction loans 246,569 236,278 225,108
Commercial loans and leases 343,653 316,409 282,854
Consumer loans 371,588 370,621 357,607
Total loans and leases 2,201,599 2,165,008 2,036,182
Less: allowance for loan and
lease losses (23,567) (23,661) (22,186)
Net loans and leases 2,178,032 2,141,347 2,013,996
Goodwill 76,625 77,457 53,913
Other intangible assets, net 17,754 18,878 15,244
Total assets 2,965,492 3,101,409 2,945,477
Total deposits 2,280,102 2,386,226 2,274,322
Customer repurchase agreements 122,130 113,622 114,712
Total stockholders' equity 310,624 306,255 275,319
Quarterly average balance sheets:
Residential mortgage loans $441,190 $426,496 $406,886
Residential construction loans 151,306 151,785 151,194
Commercial mortgage loans 647,659 630,335 565,277
Commercial construction loans 244,975 239,299 203,371
Commercial loans and leases 323,439 300,325 246,218
Consumer loans 370,585 362,221 353,668
Total loans and leases 2,179,154 2,110,461 1,926,614
Securities 458,984 523,507 551,566
Total earning assets 2,733,572 2,711,225 2,518,797
Total assets 3,019,065 2,979,820 2,743,890
Total interest-bearing liabilities 2,214,606 2,212,376 2,048,323
Noninterest-bearing demand deposits 463,018 450,887 408,954
Total deposits 2,340,004 2,290,413 2,099,409
Customer repurchase agreements 113,425 109,187 101,805
Stockholders' equity 307,564 286,040 255,781
Capital and credit quality measures:
Average equity to average assets 10.19% 9.60% 9.32%
Loan and lease loss allowance to
loans and leases 1.07% 1.09% 1.09%
Nonperforming assets to total assets 0.87% 0.71% 0.24%
Annualized net (charge-offs)
recoveries to average loans and leases 0.16% 0.05% 0.00%
Miscellaneous data:
Net (charge-offs) recoveries ($844) ($265) $17
Nonperforming assets:
Non-accrual loans and leases 17,362 18,818 1,982
Loans and leases 90 days past due 8,009 3,347 5,084
Restructured loans and leases 0 0 0
Other real estate owned, net 431 0 0
Total nonperforming assets 25,802 22,165 7,066
Sandy Spring Bancorp, Inc. and Subsidiaries
Historical Trends in Quarterly Financial Data
(Dollars in thousands, except per share data)
2006
Q4 Q3 Q2 Q1
Balance sheets at quarter end:
Residential mortgage loans $390,852 $396,811 $386,805 $428,698
Residential construction loans 151,399 175,067 169,564 166,767
Commercial mortgage loans 509,726 505,181 461,708 425,392
Commercial construction loans 192,547 185,615 214,628 188,477
Commercial loans and leases 216,238 204,023 200,712 193,524
Consumer loans 344,817 348,793 348,547 341,490
Total loans and leases 1,805,579 1,815,490 1,781,964 1,744,348
Less: allowance for loan and
lease losses (19,492) (19,433) (18,910) (17,860)
Net loans and leases 1,786,087 1,796,057 1,763,054 1,726,488
Goodwill 12,494 12,606 12,606 12,596
Other intangible assets, net 10,653 11,431 12,173 12,916
Total assets 2,610,457 2,600,633 2,588,528 2,501,752
Total deposits 1,994,223 1,947,850 1,818,347 1,839,355
Customer repurchase agreements 99,382 129,213 235,853 181,520
Total stockholders' equity 237,777 235,868 228,913 225,137
Quarterly average balance sheets:
Residential mortgage loans $407,277 $405,430 $449,482 $427,609
Residential construction loans 162,084 172,873 167,632 161,649
Commercial mortgage loans 504,698 465,989 436,036 424,467
Commercial construction loans 189,027 218,798 206,419 186,606
Commercial loans and leases 205,582 199,968 196,093 188,747
Consumer loans 346,030 346,639 345,194 339,299
Total loans and leases 1,814,698 1,809,697 1,800,856 1,728,377
Securities 544,877 583,156 554,157 555,061
Total earning assets 2,416,120 2,407,185 2,367,100 2,294,665
Total assets 2,610,023 2,600,092 2,560,633 2,484,687
Total interest-bearing
liabilities 1,937,685 1,934,668 1,895,652 1,821,530
Noninterest-bearing demand
deposits 407,659 410,912 419,454 418,214
Total deposits 1,970,953 1,851,098 1,819,255 1,799,213
Customer repurchase agreements 120,597 212,123 196,359 167,620
Stockholders' equity 239,921 231,364 226,440 221,599
Capital and credit quality
measures:
Average equity to average
assets 9.19% 8.90% 8.84% 8.92%
Loan and lease loss allowance
to loans and leases 1.08% 1.07% 1.06% 1.02%
Nonperforming assets to total
assets 0.15% 0.15% 0.10% 0.12%
Annualized net (charge-offs)
recoveries to average loans
and leases (0.01)% 0.00% 0.00% 0.01%
Miscellaneous data:
Net (charge-offs) recoveries ($191) ($27) $5 $24
Nonperforming assets:
Non-accrual loans and leases 1,910 1,495 1,691 585
Loans and leases 90 days
past due 1,823 2,346 988 2,473
Restructured loans and leases 0 0 0 0
Other real estate owned, net 182 0 0 0
Total nonperforming assets 3,915 3,841 2,679 3,058 Sandy Spring Bancorp, Inc. and Subsidiaries
CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES
(Dollars in thousands and tax-equivalent) Three Months Ended September 30,
2007 2006
Annualized Annualized
Average Average
Average Yield/ Average Yield/
Balances Interest Rate Balances Interest Rate
Assets
Residential
mortgage loans $441,190 $6,773 6.14% $405,430 $5,936 5.86%
Residential
construction
loans 151,306 2,754 7.22 172,873 3,273 7.51
Commercial
mortgage loans 647,659 11,499 7.04 465,989 8,495 7.26
Commercial
construction
loans 244,975 5,593 9.06 218,798 4,964 8.94
Commercial loans
and leases 323,439 6,828 8.38 199,968 4,101 8.15
Consumer loans 370,585 6,576 7.07 346,639 6,140 7.03 Total loans and
leases 2,179,154 40,023 7.30 1,809,697 32,909 7.23 Securities 458,984 7,126 6.11 583,156 8,606 5.82 Interest-bearing
deposits with
banks 44,986 590 5.20 493 4 3.45
Federal funds
sold 50,448 666 5.24 13,839 176 5.07 TOTAL EARNING
ASSETS 2,733,572 48,405 7.03% 2,407,185 41,695 6.87% Less: allowance
for loan and
lease losses (23,964) (19,192)
Cash and due
from banks 53,935 46,499 Premises and
equipment, net 54,546 46,034
Other assets 200,976 119,566
Total
assets $3,019,065 $2,600,092 Liabilities and
Stockholders' Equity
Interest-bearing
demand deposits $239,683 $223 0.37% $218,350 $169 0.31%
Regular savings
deposits 170,548 128 0.30 177,759 153 0.34
Money market
savings deposits 683,909 6,614 3.84 390,757 3,196 3.24
Time deposits 782,846 8,933 4.53 652,320 6,859 4.17
Total interest-
bearing
deposits 1,876,986 15,898 3.36 1,440,186 10,377 2.86
Borrowings 337,620 3,848 4.53 494,482 5,519 4.43
TOTAL INTEREST-
BEARING
LIABILITIES 2,214,606 19,746 3.54 1,934,668 15,896 3.26 Noninterest-
bearing demand
deposits 463,018 410,912
Other liabilities 33,877 23,148
Stockholder's
equity 307,564 231,364
Total liabilities
and stockholders'
equity $3,019,065 $2,600,092 Net interest
income and
spread $28,659 3.49% $25,799 3.61%
Less: tax
equivalent
adjustment 1,447 1,677
Net interest
income 27,212 24,122 Interest income/
earning assets 7.03% 6.87%
Interest expense/
earning assets 2.87 2.62
Net interest margin 4.16% 4.25% * Interest income includes the effects of annualized taxable-equivalent
adjustments (reduced by the nondeductible portion of interest expense)
using the appropriate marginal federal income tax rate of 35.00% and a
marginal state income tax rate of 6.55% (or a combined marginal federal
and state rate of 39.26%) for 2007 and a marginal state income tax rate
of 7.00% (or a combined marginal federal and state rate of 39.55%) for
2006, to increase tax- exempt interest income to a taxable-equivalent
basis. The annualized taxable-equivalent adjustment amounts utilized in
the above table to compute yields aggregated to $5.7 million in 2007 and
$6.7 million in 2006.
Sandy Spring Bancorp, Inc. and Subsidiaries
CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES
(Dollars in thousands and tax-equivalent) Nine Months Ended September 30,
2007 2006
Annualized Annualized
Average Average
Average Yield/ Average Yield/
Balances Interest Rate Balances Interest Rate Assets
Residential
mortgage loans $424,147 $19,264 6.06% $427,426 $18,527 5.78%
Residential
construction
loans 151,429 8,230 7.27 167,426 9,153 7.31
Commercial
mortgage
loans 615,648 33,350 7.24 442,316 23,695 7.16
Commercial
construction
loans 229,368 15,602 9.09 204,059 13,239 8.67
Commercial loans
and leases 290,190 18,018 8.30 194,977 11,648 7.98
Consumer loans 362,220 18,993 7.04 343,737 17,083 6.64
Total loans and
leases 2,073,002 113,457 7.31 1,779,941 93,345 7.01
Securities 511,013 22,704 5.95 564,228 23,891 5.67
Interest-bearing
deposits with
banks 27,681 1,081 5.22 642 18 3.81
Federal funds
sold 43,936 1,720 5.24 11,918 432 4.85
TOTAL EARNING
ASSETS 2,655,632 138,962 7.00% 2,356,729 117,686 6.68% Less:allowance
for loan and
lease losses (22,439) (18,325)
Cash and due
from banks 54,448 46,261
Premises and
equipment, net 51,786 45,788
Other assets 175,021 118,392
Total
assets $2,914,448 $2,548,845 Liabilities and
Stockholders' Equity
Interest-bearing
demand deposits $237,173 626 0.35% $229,629 497 0.29%
Regular savings
deposits 168,957 421 0.33 189,042 556 0.39
Money market
savings deposits 611,881 17,349 3.79 375,259 8,102 2.89
Time deposits 784,995 26,867 4.58 613,283 17,691 3.86
Total interest-
bearing
deposits 1,803,006 45,263 3.36 1,407,213 26,846 2.55
Borrowings 356,039 12,177 4.57 477,152 15,071 4.22
TOTAL INTEREST-
BEARING
LIABILITIES 2,159,045 57,440 3.56 1,884,365 41,917 2.97 Noninterest-
bearing demand
deposits 441,151 416,167
Other liabilities 30,916 21,810
Stockholder's
equity 283,336 226,503
Total liabilities
and stockholders'
equity $2,914,448 $2,548,845 Net interest
income and
spread $81,522 3.44% $75,769 3.71%
Less: tax
equivalent
adjustment 4,096 4,618
Net interest
income 77,426 71,151 Interest
income/
earning
assets 7.00% 6.68%
Interest
expense/
earning
assets 2.90 2.38
Net interest
margin 4.10% 4.30% * Interest income includes the effects of annualized taxable-equivalent
adjustments (reduced by the nondeductible portion of interest expense)
using the appropriate marginal federal income tax rate of 35.00% and a
marginal state income tax rate of 6.55% (or a combined marginal federal
and state rate of 39.26%) for 2007 and a marginal state income tax rate
of 7.00% (or a combined marginal federal and state rate of 39.55%) for
2006, to increase tax- exempt interest income to a taxable-equivalent
basis. The annualized taxable-equivalent adjustment amounts utilized in
the above table to compute yields aggregated to $5.5 million in 2007 and
$6.2 million in 2006. http://www.newscom.com/cgi-bin/prnh/20010424/SSPRINGLOGO-a http://photoarchive.ap.org/ DATASOURCE: Sandy Spring Bancorp, Inc.
CONTACT: Hunter R. Hollar, President & Chief Executive Officer, , or Philip J. Mantua, Executive V.P. & Chief Financial Officer, , both of Sandy Spring Bancorp, Inc., +1-800-399-5919 Web site: http://www.sandyspringbank.com/
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