Sandy Spring Bancorp, Inc. (Nasdaq-SASR), the parent company of
Sandy Spring Bank, reported net income of $20.7 million ($0.46 per
diluted common share) for the quarter ended September 30,
2023, compared to net income of $24.7 million ($0.55 per diluted
common share) for the second quarter of 2023 and $33.6 million
($0.75 per diluted common share) for the third quarter of 2022. The
decline in the current quarter's net income compared to the linked
quarter was the result of the one-time pension settlement expense
associated with the previously disclosed termination of the
Company's pension plan, coupled with lower net interest income.
These negative factors were partially offset by lower provision for
credit losses and a decline in salaries and employee benefits
expense after excluding the impact of the pension settlement
expense.
Current quarter core earnings were $27.8 million
($0.62 per diluted common share), compared to $27.1 million ($0.60
per diluted common share) for the quarter ended June 30, 2023
and $35.7 million ($0.80 per diluted common share) for the quarter
ended September 30, 2022. Core earnings exclude the after-tax
impact of amortization of intangibles, investment securities gains
or losses and non-recurring or extraordinary items. The increase in
core earnings during the current quarter as compared to the
previous quarter was a result of lower provision for credit losses,
lower salaries and employee benefits expense, and lower marketing
expense, offset by reduced net interest income.
“This quarter we demonstrated the effectiveness
of our core funding strategies and ability to expand our reach in
the Greater Washington region. We added over 1,500 clients in the
quarter, which reflects over 1% growth in our client base,” said
Daniel J. Schrider, Chairman, President and CEO of Sandy Spring
Bank. "Additionally, we grew the Commercial & Industrial
portfolio, reduced our Commercial Real Estate concentration, and
maintained our credit quality."
“We are focused on capitalizing on this momentum
to deepen existing client relationships and welcome new clients to
Sandy Spring Bank,” Schrider added.
Third Quarter
Highlights
- Total assets at September 30,
2023 increased by 1% to $14.1 billion compared to $14.0 billion at
June 30, 2023.
- Total loans declined by $69.3
million or 1% to $11.3 billion at September 30, 2023 compared
to $11.4 billion at June 30, 2023. During the current quarter,
the Company reduced its concentration in the commercial real estate
segments by $110.3 million, while commercial business loans and
lines increased $31.1 million. The total residential mortgage loan
portfolio grew $16.0 million mainly due to the migration of
construction loans into the portfolio.
- Deposits increased $192.1 million
or 2% to $11.2 billion at September 30, 2023 compared to $11.0
billion at June 30, 2023, as interest-bearing deposits
increased $258.1 million or 3%, while noninterest-bearing deposits
declined $66.0 million or 2%. Growth within interest-bearing
deposit categories was driven by savings accounts and core time
deposits, which increased by $277.4 million and $263.7 million,
respectively. These increases were partially offset by the $155.8
million decrease in brokered time deposits, as the Company reduced
its reliance on wholesale funding sources, and the $177.5 million
decrease in money market accounts.
- Credit quality metrics remained at
low levels during the current quarter. The ratio of non-performing
loans to total loans was 0.46% at September 30, 2023 compared
to 0.44% at June 30, 2023 and 0.40% at September 30,
2022. Net charge-off activity during the current quarter was
insignificant.
- Total borrowings declined in the
current quarter by $57.8 million or 4% over the amounts at
June 30, 2023, mainly as a result of a $50.0 million reduction
in FHLB advances.
- Net interest income for the third
quarter of 2023 declined $5.4 million or 6% compared to the
previous quarter and $27.9 million or 25% compared to the third
quarter of 2022. During the recent quarter, the $4.3 million growth
in interest income was more than offset by the $9.7 million
increase in interest expense, a result of the increased rates paid
on deposits.
- The net interest margin was 2.55%
for the third quarter of 2023 compared to 2.73% for the second
quarter of 2023 and 3.53% for the third quarter of 2022. The
decline in the net interest margin was the result of higher rates
paid on interest-bearing liabilities, driven by higher market
rates, competition for deposits, and customer movement of excess
funds out of noninterest-bearing accounts, outpacing the increase
in the yield on interest-earning assets. Compared to the linked
quarter, the rate paid on interest-bearing liabilities rose 36
basis points, while the yield on interest-earning assets increased
8 basis points, resulting in the quarterly margin compression of 18
basis points.
- Provision for credit losses
directly attributable to the funded loan portfolio for the current
quarter was $3.2 million compared to $4.5 million in the previous
quarter and $14.1 million in the prior year quarter. The provision
for the current quarter was the product of increases in individual
reserves on a few commercial lending relationships, which were
partially offset by a qualitative adjustment related to reduced
probability of an economic recession. In addition, during the
current quarter the Company reduced its reserve for unfunded
commitments by $0.8 million as a result of higher utilization of
lines of credit.
- Non-interest income for the third
quarter of 2023 increased by 1% or $0.2 million compared to the
linked quarter and grew by 3% or $0.5 million compared to the prior
year quarter. The quarter-over-quarter increase was mainly driven
by higher wealth management income and higher lending-related fees,
offset by lower BOLI income.
- Non-interest expense for the third
quarter of 2023 increased $3.3 million or 5% compared to the second
quarter of 2023 and $6.7 million or 10% compared to the prior year
quarter. The current quarter included $8.2 million of pension
settlement expense related to the termination of the Company's
pension plan, while the previous quarter included $1.9 million of
severance related expense associated with staffing adjustments.
Excluding these items from the current and previous quarters, total
non-interest expense declined by $2.9 million or 4% driven by lower
salaries and employee benefits expense and lower marketing
expense.
- Return on average assets (“ROA”)
for the quarter ended September 30, 2023 was 0.58% and return
on average tangible common equity (“ROTCE”) was 7.42% compared to
0.70% and 8.93%, respectively, for the second quarter of 2023 and
0.99% and 12.49%, respectively, for the third quarter of 2022. On a
non-GAAP basis, the current quarter's core ROA was 0.78% and core
ROTCE was 9.51% compared to 0.77% and 9.43%, respectively, for the
previous quarter and 1.05% and 12.86%, respectively, for the third
quarter of 2022.
- The GAAP efficiency ratio was
70.72% for the third quarter of 2023, compared to 64.22% for the
second quarter of 2023 and 50.66% for the third quarter of 2022.
The non-GAAP efficiency ratio was 60.91% for the third quarter of
2023 compared to 60.68% for the second quarter of 2023 and 48.18%
for the prior year quarter. The increase in both the GAAP and
non-GAAP efficiency ratios (reflecting a decrease in efficiency) in
the current quarter compared to the previous quarter and the third
quarter of the prior year was the result of declines in net revenue
from the prior periods coupled with the growth in non-interest
expense.
Balance Sheet and Credit
Quality
Total assets were $14.1 billion at
September 30, 2023, as compared to $14.0 billion at
June 30, 2023. Total loans declined by $69.3 million or 1% to
$11.3 billion at September 30, 2023 compared to $11.4 billion
at June 30, 2023. Total commercial real estate and business
loans declined $79.2 million quarter-over-quarter due to a $107.1
million or 10% decline in the AD&C loan portfolio, while
investor and owner-occupied commercial real estate loan portfolios
were relatively unchanged. Commercial business loans and lines
increased $31.1 million or 2%. Total residential mortgage loans
grew $16.0 million or 1% mainly due to the migration of
construction loans into the residential mortgage portfolio.
Overall, the loan portfolio mix remained relatively unchanged
compared to the previous quarter.
Deposits increased $192.1 million or 2% to $11.2
billion at September 30, 2023 compared to $11.0 billion at
June 30, 2023. During this period total interest-bearing
deposits increased $258.1 million or 3%, while noninterest-bearing
deposits declined $66.0 million or 2%. Growth within
interest-bearing deposit categories was driven by savings accounts
and core time deposits, which increased by $277.4 million and
$263.7 million, respectively. These increases were partially offset
by the $155.8 million decrease in brokered time deposits, as the
Company reduced its reliance on wholesale funding sources, and the
$177.5 million decrease in money market accounts. Total deposits,
excluding brokered deposits, increased by $349.5 million or 4%
quarter-over-quarter and represented 90% of the total deposits as
of September 30, 2023 compared to 88% at June 30, 2023,
reflecting the continued stability of the core deposit base. The
deposit growth experienced during the current quarter resulted in
the loan to deposit ratio declining to 101% at September 30,
2023 from 104% at June 30, 2023. Total uninsured deposits at
September 30, 2023 were approximately 33% of the total
deposits. The Company offers its customers reciprocal deposit
arrangements, which provide FDIC deposit insurance for accounts
that would otherwise exceed deposit insurance limits. During the
quarter ended September 30, 2023, balances in the Company's
reciprocal deposit accounts increased by $131.6 million.
Total borrowings declined by $57.8 million or 4%
at September 30, 2023 as compared to the previous quarter,
driven by a $50.0 million reduction in FHLB advances. The
outstanding balance of borrowings through the Federal Reserve
Bank's Bank Term Funding Program remained unchanged at $300.0
million at September 30, 2023. At September 30, 2023,
contingent liquidity, which consists of available FHLB borrowings,
fed funds, funds through the Federal Reserve Bank's discount window
and the Bank Term Funding Program, as well as excess cash and
unpledged investment securities totaled $6.1 billion or 168% of
uninsured deposits. At September 30, 2023, total cash and cash
equivalents were $717.6 million, an increase of $287.5 million or
67% compared to the linked quarter, primarily a result of strong
deposit growth.
The tangible common equity ratio decreased to
8.42% of tangible assets at September 30, 2023, compared to
8.51% at June 30, 2023. This decrease reflected the impact of
higher tangible assets while tangible common equity remained
relatively unchanged quarter-over-quarter, as net retained earnings
were offset by an increase in unrealized losses on
available-for-sale investment securities.
At September 30, 2023, the Company had a
total risk-based capital ratio of 14.85%, a common equity tier 1
risk-based capital ratio of 10.83%, a tier 1 risk-based capital
ratio of 10.83%, and a tier 1 leverage ratio of 9.50%. All of these
ratios remain well in excess of the mandated minimum regulatory
requirements.
Non-performing loans include non-accrual loans
and accruing loans 90 days or more past due. Overall credit quality
remained stable at September 30, 2023 compared to
June 30, 2023, as the ratio of non-performing loans to total
loans was 0.46% compared to 0.44%. These levels of non-performing
loans compare to 0.40% at September 30, 2022 and continue to
indicate stable credit quality during a period of economic
uncertainty. At September 30, 2023, non-performing loans
totaled $51.8 million, compared to $49.5 million at
June 30, 2023 and $44.5 million at September 30,
2022. Total net charge-offs for the current quarter amounted to
$0.1 million compared to $1.8 million for the second quarter of
2023 and $0.5 million of net recoveries for the third quarter of
2022.
At September 30, 2023, the allowance for
credit losses was $123.4 million or 1.09% of outstanding loans
and 238% of non-performing loans, compared to $120.3 million
or 1.06% of outstanding loans and 243% of non-performing loans at
the end of the previous quarter and $128.3 million or 1.14% of
outstanding loans and 289% of non-performing loans at the end of
the third quarter of 2022. The increase in the allowance for the
current quarter compared to the previous quarter mainly reflects
increases in individual reserves recorded on a few commercial real
estate relationships, partially offset by the reduction of the
qualitative adjustment related to the probability of an economic
recession.
Income Statement Review
Quarterly Results
Net income was $20.7 million ($0.46 per diluted
common share) for the three months ended September 30, 2023
compared to $24.7 million ($0.55 per diluted common share) for the
three months ended June 30, 2023 and $33.6 million ($0.75 per
diluted common share) for the prior year quarter. The current
quarter's core earnings were $27.8 million ($0.62 per diluted
common share), compared to $27.1 million ($0.60 per diluted common
share) for the previous quarter and $35.7 million ($0.80 per
diluted common share) for the quarter ended September 30,
2022. The decline in the current quarter's net income compared to
the previous quarter was the result of one-time pension settlement
expense of $8.2 million, as the Company completed the termination
of its pension plan, coupled with lower net interest income,
partially offset by lower provision for credit losses and lower
salaries expense. The increase in core earnings during the current
quarter as compared to the previous quarter was a result of lower
provision for credit losses, lower salaries and employee benefits
expense, and lower marketing expense, offset by reduced net
interest income.
Net interest income for the third quarter of
2023 decreased $5.4 million or 6% compared to the previous quarter
and $27.9 million or 25% compared to the third quarter of 2022.
Both quarterly and year-over-year decreases in net interest income
were driven by higher interest expense, a result of higher funding
costs, which outpaced growth in interest income. The rising
interest rate environment was primarily responsible for a $32.0
million year-over-year increase in interest income. This growth in
interest income was more than offset by the $59.9 million
year-over-year growth in interest expense as funding costs have
also risen in response to the rising rate environment and
significant competition for deposits. Interest income growth
occurred in all categories of commercial loans and, to a lesser
degree, in residential mortgage loans, consumer loans and
investment securities income.
The net interest margin was 2.55% for the third
quarter of 2023 compared to 2.73% for the second quarter of 2023
and 3.53% for the third quarter of 2022. The contraction of the net
interest margin for the current quarter reflects the higher rate
paid on interest-bearing liabilities, which outpaced the increase
in the yield on interest-earning assets. The overall rate and yield
increases were driven by the multiple federal funds rate increases
that occurred over the preceding twelve months coupled with
competition for deposits in the market, and customer movement of
excess funds out of noninterest-bearing accounts into higher
yielding products. As compared to the prior year quarter, the yield
on interest-earning assets increased 76 basis points while the rate
paid on interest-bearing liabilities rose 241 basis points,
resulting in the margin compression of 98 basis points.
The total provision for credit losses was $2.4
million for the third quarter of 2023 compared to $5.1 million for
the previous quarter and $18.9 million for the third quarter of
2022. The provision for credit losses directly attributable to the
funded loan portfolio was $3.2 million for the current quarter
compared to $4.5 million for the second quarter of 2023 and the
prior year quarter’s provision of $14.1 million. The current
quarter's provision mainly reflects an increase in individual
reserves established on a few commercial real estate
relationships.
Non-interest income for the third quarter of
2023 increased by 1% or $0.2 million compared to the linked quarter
and grew by 3% or $0.5 million compared to the prior year quarter.
The current quarter's increase in non-interest income as compared
to the previous quarter was mainly driven by higher wealth
management income coupled with higher lending-related fees,
partially offset by lower BOLI income due to mortality proceeds
received in the prior quarter.
Non-interest expense for the third quarter of
2023 increased $3.3 million or 5% compared to the second quarter of
2023 and $6.7 million or 10% compared to the third quarter of 2022.
The current quarter included $8.2 million of pension settlement
expense related to the termination of the Company's pension plan,
while the previous quarter included $1.9 million of severance
related expense associated with staffing adjustments. Excluding
these items from the current and previous quarters, total
non-interest expense declined by $2.9 million or 4% driven by lower
salaries and employee benefits and lower marketing expense.
Excluding pension settlement expense from the current quarter,
non-interest expense declined by $1.5 million or 2% year-over-year.
This decline is primarily attributable to lower compensation
expense, partially offset by higher professional fees related to
the Company's investments in technology projects, and higher FDIC
insurance expense, due to an increase in the assessment rate for
all banks that became effective in 2023.
For the third quarter of 2023, the GAAP
efficiency ratio was 70.72% compared to 64.22% for the second
quarter of 2023 and 50.66% for the third quarter of 2022. The GAAP
efficiency ratio rose from the prior year quarter primarily as a
result of the 21% decrease in GAAP revenue in combination with the
10% increase in GAAP non-interest expense. The non-GAAP efficiency
ratio was 60.91% for the current quarter as compared to 60.68% for
the second quarter of 2023 and 48.18% for the third quarter of
2022. The increase in the non-GAAP efficiency ratio (reflecting a
decrease in efficiency) from the third quarter of the prior year to
the current year quarter was primarily the result of the 21%
decline in non-GAAP revenue, while non-GAAP expenses were
relatively unchanged.
ROA for the quarter ended September 30,
2023 was 0.58% and ROTCE was 7.42% compared to 0.70% and 8.93%,
respectively, for the second quarter of 2023 and 0.99% and 12.49%,
respectively, for the third quarter of 2022. On a non-GAAP basis,
the current quarter's core ROA was 0.78% and core ROTCE was 9.51%
compared to 0.77% and 9.43% for the second quarter of 2023 and
1.05% and 12.86%, respectively, for the third quarter of 2022.
Year-to-Date Results
The Company recorded net income of $96.7 million
for the nine months ended September 30, 2023 compared to net
income of $132.3 million for the same period in the prior year.
Core earnings were $107.2 million for the nine months ended
September 30, 2023 compared to $125.0 million for the same
period in the prior year. Year-to-date net income declined as a
result of the gain recognized on the sale of the Company's
insurance segment during the prior year in combination with lower
net interest income and higher non-interest expense, partially
offset by lower provision for credit losses as a result of
significant credit recorded during the first quarter of the current
year.
For the nine months ended September 30,
2023, net interest income decreased $47.5 million compared to the
prior year as a result of the $169.0 million increase in interest
expense, partially offset by the $121.5 million increase in
interest income. The increase in interest expense was driven by the
interest expense on deposits, primarily associated with money
market and time deposit accounts and, to a lesser degree, FHLB and
Federal Reserve Bank borrowings. The net interest margin declined
to 2.75% for the nine months ended September 30, 2023,
compared to 3.50% for the prior year, primarily as a result of
higher funding cost due to the rising interest rate environment and
market competition for deposits during the period.
The provision for credit losses for the nine
months ended September 30, 2023 amounted to a credit of $14.1
million as compared to a charge of $23.6 million for 2022. Credit
to the provision for the nine months ended September 30, 2023
was a reflection of the improving regional forecasted unemployment
rate, observed during the early part of the current year, coupled
with the continued strong credit quality performance of the loan
portfolio.
For the nine months ended September 30,
2023, non-interest income decreased 31% to $50.5 million compared
to $72.7 million for 2022. During the prior year, the Company
realized a $16.5 million gain on the sale of its insurance segment.
Excluding the gain, non-interest income decreased 10% or $5.7
million, driven by a $2.9 million decrease in insurance
commissions, a $2.6 million decrease in bank card fees and a $0.6
million decrease in income from mortgage banking activities.
Insurance commission income declined due to the disposition of the
Company's insurance business during the second quarter of the prior
year. Fees from bank cards declined as a result of regulatory
restrictions on transaction fees effective in the second half of
the prior year. The decline in income from mortgage banking
activities is the result of the rising interest rate environment,
which continues to dampen home sales and refinancing activity.
These decreases in non-interest income year-over-year were
partially offset by a $0.8 million increase in BOLI
mortality-related income.
Non-interest expense increased 8% to $207.9
million for the nine months ended September 30, 2023, compared
to $192.9 million for 2022. Current year expense included pension
settlement expense of $8.2 million and severance expense of $1.9
million, while the prior year included contingent earn-out expense
associated with the 2020 acquisition of Rembert Pendleton Jackson
of $1.2 million and merger, acquisition and disposal expense of
$1.1 million. Excluding these items, non-interest expense increased
by $7.2 million or 4% in the current year over the prior year. The
drivers of the increase in non-interest expense were a $5.8 million
increase in professional fees, a $3.5 million increase in FDIC
expense, and a $1.4 million increase in software amortization
expense. Excluding the pension settlement expense, total salaries
and benefits expense declined by $3.5 million from the prior year
period. Year-over-year increases in both professional fees and
software amortization expense were mainly associated with the
Company's investments in technology and software projects. The
increase in FDIC insurance expense was a result of the two basis
points increase in the assessment rate for all banks that became
effective in 2023.
For the nine months ended September 30,
2023, the GAAP efficiency ratio was 64.29% compared to 49.08% for
the same period in 2022. The non-GAAP efficiency ratio for the
current year was 59.42% compared to the 49.09% for the prior year.
The growth in the current year’s non-GAAP efficiency ratio compared
to the prior year, indicating a decline in efficiency, was the
result of the 14% decrease in non-GAAP revenue combined with the 4%
growth in non-GAAP non-interest expense.
Explanation of Non-GAAP Financial Measures
This news release contains financial information
and performance measures determined by methods other than in
accordance with generally accepted accounting principles in the
United States (“GAAP”). The Company’s management believes that the
supplemental non-GAAP information provides a better comparison of
period-to-period operating performance. Additionally, the Company
believes this information is utilized by regulators and market
analysts to evaluate a company’s financial condition and,
therefore, such information is useful to investors. Non-GAAP
measures used in this release consist of the following:
- Tangible common equity and related
measures are non-GAAP measures that exclude the impact of goodwill
and other intangible assets.
- The non-GAAP efficiency ratio
excludes amortization of intangible assets, investment securities
gains/(losses), merger, acquisition and disposal expense, gain on
disposal of assets, pension settlement expense, severance expense
and contingent payment expense, and includes tax-equivalent
income.
- Core earnings and the related
measures of core earnings per diluted common share, core return on
average assets and core return on average tangible common equity
reflect net income exclusive of amortization of intangible assets,
pension settlement expense, investment securities gains/(losses)
and other non-recurring or extraordinary items, on a net of tax
basis.
- Pre-tax pre-provision net income
excludes income tax expense and the provision (credit) for credit
losses.
These disclosures should not be viewed as a
substitute for financial results in accordance with GAAP, nor are
they necessarily comparable to non-GAAP performance measures that
may be presented by other companies. Please refer to the non-GAAP
Reconciliation tables included with this release for a
reconciliation of these non-GAAP measures to the most directly
comparable GAAP measure.
Conference Call
The Company’s management will host a conference
call to discuss its third quarter results today at 2:00 p.m. (ET).
A live Webcast of the conference call is available through the
Investor Relations section of the Sandy Spring Website at
www.sandyspringbank.com. Participants may call 1-833-470-1428.
Please use the following access code: 724249. Visitors to the
Website are advised to log on 10 minutes ahead of the scheduled
start of the call. An internet-based replay will be available on
the website until November 7, 2023. A replay of the teleconference
will be available through the same time period by calling
1-866-813-9403 under conference call number 896518.
About Sandy Spring Bancorp, Inc.
Sandy Spring Bancorp, Inc., headquartered in
Olney, Maryland, is the holding company for Sandy Spring Bank, a
premier community bank in the Greater Washington, D.C. region. With
over 50 locations, the bank offers a broad range of commercial and
retail banking, mortgage, private banking, and trust services
throughout Maryland, Virginia, and Washington, D.C. Through its
subsidiaries, Rembert Pendleton Jackson and West Financial
Services, Inc., Sandy Spring Bank also offers a comprehensive menu
of wealth management services.
Category: WebcastSource: Sandy Spring Bancorp,
Inc.Code: SASR-E
For additional information or
questions, please contact:Daniel J. Schrider, Chair, President
& Chief Executive Officer, or Philip J. Mantua, E.V.P. &
Chief Financial OfficerSandy Spring Bancorp 17801 Georgia
AvenueOlney, Maryland 208321-800-399-5919Email:
DSchrider@sandyspringbank.com PMantua@sandyspringbank.com
Website: www.sandyspringbank.com
Media Contact:Jen Schell, Senior Vice President
301-570-8331jschell@sandyspringbank.com
Forward-Looking Statements
Sandy Spring Bancorp’s forward-looking
statements are subject to significant risks and uncertainties that
may cause actual results to differ materially from those in such
statements. These risks and uncertainties include, but are not
limited to, the risks identified in our quarterly and annual
reports and the following: changes in general business and economic
conditions nationally or in the markets that we serve; changes in
consumer and business confidence, investor sentiment, or consumer
spending or savings behavior; changes in the level of inflation;
changes in the demand for loans, deposits and other financial
services that we provide; the possibility that future credit losses
may be higher than currently expected; the impact of the interest
rate environment on our business, financial condition and results
of operations; the impact of compliance with changes in laws,
regulations and regulatory interpretations, including changes in
income taxes; changes in credit ratings assigned to us or our
subsidiaries; the ability to realize benefits and cost savings
from, and limit any unexpected liabilities associated with, any
business combinations; competitive pressures among financial
services companies; the ability to attract, develop and retain
qualified employees; our ability to maintain the security of our
data processing and information technology systems; the impact of
changes in accounting policies, including the introduction of new
accounting standards; the impact of judicial or regulatory
proceedings; the impact of fiscal and governmental policies of the
United States federal government; the impact of health emergencies,
epidemics or pandemics; the effects of climate change; and the
impact of natural disasters, extreme weather events, military
conflict, terrorism or other geopolitical events. Sandy Spring
Bancorp provides greater detail regarding some of these factors in
its Form 10-K for the year ended December 31, 2022 and its
Form 10-Q for the quarter ended June 30, 2023, including in
the Risk Factors section of those reports, 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 www.sec.gov.
|
Sandy
Spring Bancorp, Inc. and Subsidiaries FINANCIAL
HIGHLIGHTS - UNAUDITED |
|
|
|
Three Months EndedSeptember 30, |
|
%Change |
|
Nine Months EndedSeptember 30, |
|
%Change |
(Dollars in thousands, except per share data) |
|
2023 |
|
2022 |
|
|
2023 |
|
2022 |
|
Results of operations: |
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
$ |
85,081 |
|
|
$ |
112,960 |
|
|
(25 |
)% |
|
$ |
272,854 |
|
|
$ |
320,361 |
|
|
(15 |
)% |
Provision/ (credit) for credit losses |
|
|
2,365 |
|
|
|
18,890 |
|
|
(87 |
) |
|
|
(14,116 |
) |
|
|
23,571 |
|
|
N/M |
|
Non-interest income |
|
|
17,391 |
|
|
|
16,882 |
|
|
3 |
|
|
|
50,518 |
|
|
|
72,722 |
|
|
(31 |
) |
Non-interest expense |
|
|
72,471 |
|
|
|
65,780 |
|
|
10 |
|
|
|
207,912 |
|
|
|
192,918 |
|
|
8 |
|
Income before income tax expense |
|
|
27,636 |
|
|
|
45,172 |
|
|
(39 |
) |
|
|
129,576 |
|
|
|
176,594 |
|
|
(27 |
) |
Net income |
|
|
20,746 |
|
|
|
33,584 |
|
|
(38 |
) |
|
|
96,744 |
|
|
|
132,319 |
|
|
(27 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to common shareholders |
|
$ |
20,719 |
|
|
$ |
33,470 |
|
|
(38 |
) |
|
$ |
96,552 |
|
|
$ |
131,744 |
|
|
(27 |
) |
Pre-tax pre-provision net income (1) |
|
$ |
30,001 |
|
|
$ |
64,062 |
|
|
(53 |
) |
|
$ |
115,460 |
|
|
$ |
200,165 |
|
|
(42 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
|
0.58 |
% |
|
|
0.99 |
% |
|
|
|
|
0.92 |
% |
|
|
1.36 |
% |
|
|
Return on average common equity |
|
|
5.35 |
% |
|
|
8.96 |
% |
|
|
|
|
8.50 |
% |
|
|
11.90 |
% |
|
|
Return on average tangible common equity (1) |
|
|
7.42 |
% |
|
|
12.49 |
% |
|
|
|
|
11.67 |
% |
|
|
16.54 |
% |
|
|
Net interest margin |
|
|
2.55 |
% |
|
|
3.53 |
% |
|
|
|
|
2.75 |
% |
|
|
3.50 |
% |
|
|
Efficiency ratio - GAAP basis (2) |
|
|
70.72 |
% |
|
|
50.66 |
% |
|
|
|
|
64.29 |
% |
|
|
49.08 |
% |
|
|
Efficiency ratio - Non-GAAP basis (2) |
|
|
60.91 |
% |
|
|
48.18 |
% |
|
|
|
|
59.42 |
% |
|
|
49.09 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share
data: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income per common share |
|
$ |
0.46 |
|
|
$ |
0.75 |
|
|
(39 |
)% |
|
$ |
2.16 |
|
|
$ |
2.93 |
|
|
(26 |
)% |
Diluted net income per common share |
|
$ |
0.46 |
|
|
$ |
0.75 |
|
|
(38 |
) |
|
$ |
2.15 |
|
|
$ |
2.92 |
|
|
(26 |
) |
Weighted average diluted common shares |
|
|
44,960,455 |
|
|
|
44,780,560 |
|
|
— |
|
|
|
44,912,803 |
|
|
|
45,098,073 |
|
|
— |
|
Dividends declared per share |
|
$ |
0.34 |
|
|
$ |
0.34 |
|
|
— |
|
|
$ |
1.02 |
|
|
$ |
1.02 |
|
|
— |
|
Book value per common share |
|
$ |
34.26 |
|
|
$ |
32.52 |
|
|
5 |
|
|
$ |
34.26 |
|
|
$ |
32.52 |
|
|
5 |
|
Tangible book value per common share (1) |
|
$ |
25.80 |
|
|
$ |
23.90 |
|
|
8 |
|
|
$ |
25.80 |
|
|
$ |
23.90 |
|
|
8 |
|
Outstanding common shares |
|
|
44,895,158 |
|
|
|
44,644,269 |
|
|
1 |
|
|
|
44,895,158 |
|
|
|
44,644,269 |
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial condition at
period-end: |
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities |
|
$ |
1,392,078 |
|
|
$ |
1,587,279 |
|
|
(12 |
)% |
|
$ |
1,392,078 |
|
|
$ |
1,587,279 |
|
|
(12 |
)% |
Loans |
|
|
11,300,292 |
|
|
|
11,218,813 |
|
|
1 |
|
|
|
11,300,292 |
|
|
|
11,218,813 |
|
|
1 |
|
Assets |
|
|
14,135,085 |
|
|
|
13,765,597 |
|
|
3 |
|
|
|
14,135,085 |
|
|
|
13,765,597 |
|
|
3 |
|
Deposits |
|
|
11,151,012 |
|
|
|
10,749,486 |
|
|
4 |
|
|
|
11,151,012 |
|
|
|
10,749,486 |
|
|
4 |
|
Stockholders' equity |
|
|
1,537,914 |
|
|
|
1,451,862 |
|
|
6 |
|
|
|
1,537,914 |
|
|
|
1,451,862 |
|
|
6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 leverage (3) |
|
|
9.50 |
% |
|
|
9.33 |
% |
|
|
|
|
9.50 |
% |
|
|
9.33 |
% |
|
|
Common equity tier 1 capital to risk-weighted assets (3) |
|
|
10.83 |
% |
|
|
10.18 |
% |
|
|
|
|
10.83 |
% |
|
|
10.18 |
% |
|
|
Tier 1 capital to risk-weighted assets (3) |
|
|
10.83 |
% |
|
|
10.18 |
% |
|
|
|
|
10.83 |
% |
|
|
10.18 |
% |
|
|
Total regulatory capital to risk-weighted assets (3) |
|
|
14.85 |
% |
|
|
14.15 |
% |
|
|
|
|
14.85 |
% |
|
|
14.15 |
% |
|
|
Tangible common equity to tangible assets (4) |
|
|
8.42 |
% |
|
|
7.98 |
% |
|
|
|
|
8.42 |
% |
|
|
7.98 |
% |
|
|
Average equity to average assets |
|
|
10.92 |
% |
|
|
10.99 |
% |
|
|
|
|
10.84 |
% |
|
|
11.41 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit quality
ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses to loans |
|
|
1.09 |
% |
|
|
1.14 |
% |
|
|
|
|
1.09 |
% |
|
|
1.14 |
% |
|
|
Non-performing loans to total loans |
|
|
0.46 |
% |
|
|
0.40 |
% |
|
|
|
|
0.46 |
% |
|
|
0.40 |
% |
|
|
Non-performing assets to total assets |
|
|
0.37 |
% |
|
|
0.33 |
% |
|
|
|
|
0.37 |
% |
|
|
0.33 |
% |
|
|
Allowance for credit losses to non-performing loans |
|
|
238.32 |
% |
|
|
288.50 |
% |
|
|
|
|
238.32 |
% |
|
|
288.50 |
% |
|
|
Annualized net charge-offs/ (recoveries) to average loans (5) |
|
|
— |
% |
|
(0.02 |
)% |
|
|
|
|
0.02 |
% |
|
|
— |
% |
|
|
|
N/M - not
meaningful |
|
(1) |
|
Represents a non-GAAP measure. |
|
(2) |
|
The efficiency ratio - GAAP basis is non-interest expense divided
by net interest income plus non-interest income from the Condensed
Consolidated Statements of Income. The traditional efficiency ratio
- Non-GAAP basis excludes intangible asset amortization, merger,
acquisition and disposal expense, severance expense, pension
settlement expense and contingent payment expense from non-interest
expense; and investment securities gains/ (losses) and gain on
disposal of assets from non-interest income; and adds the
tax-equivalent adjustment to net interest income. See the
Reconciliation Table included with these Financial Highlights. |
|
(3) |
|
Estimated ratio at September 30, 2023. |
|
(4) |
|
The tangible common equity to tangible assets ratio is a non-GAAP
ratio that divides assets excluding goodwill and other intangible
assets into stockholders' equity after deducting goodwill and other
intangible assets. See the Reconciliation Table included with these
Financial Highlights. |
|
(5) |
|
Calculation utilizes average loans, excluding residential mortgage
loans held-for-sale. |
|
|
|
|
|
Sandy
Spring Bancorp, Inc. and Subsidiaries
RECONCILIATION TABLE - UNAUDITED
(CONTINUED)OPERATING EARNINGS -
METRICS |
|
|
|
Three Months EndedSeptember 30, |
|
Nine Months EndedSeptember 30, |
(Dollars in thousands) |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Core earnings (non-GAAP): |
|
|
|
|
|
|
|
|
Net income (GAAP) |
|
$ |
20,746 |
|
|
$ |
33,584 |
|
|
$ |
96,744 |
|
|
$ |
132,319 |
|
Plus/ (less) non-GAAP
adjustments (net of tax)(1): |
|
|
|
|
|
|
|
|
Merger, acquisition and disposal expense |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
796 |
|
Amortization of intangible assets |
|
|
932 |
|
|
|
1,076 |
|
|
|
2,851 |
|
|
|
3,284 |
|
Severance expense |
|
|
— |
|
|
|
— |
|
|
|
1,445 |
|
|
|
— |
|
Pension settlement expense |
|
|
6,088 |
|
|
|
— |
|
|
|
6,088 |
|
|
|
— |
|
Gain on disposal of assets |
|
|
— |
|
|
|
108 |
|
|
|
— |
|
|
|
(12,309 |
) |
Investment securities gains |
|
|
— |
|
|
|
(2 |
) |
|
|
— |
|
|
|
(36 |
) |
Contingent payment expense |
|
|
— |
|
|
|
929 |
|
|
|
27 |
|
|
|
929 |
|
Core earnings (Non-GAAP) |
|
$ |
27,766 |
|
|
$ |
35,695 |
|
|
$ |
107,155 |
|
|
$ |
124,983 |
|
|
|
|
|
|
|
|
|
|
Core earnings per
diluted common share (non-GAAP): |
|
|
|
|
|
|
|
|
Weighted average common shares
outstanding - diluted (GAAP) |
|
|
44,960,455 |
|
|
|
44,780,560 |
|
|
|
44,912,803 |
|
|
|
45,098,073 |
|
|
|
|
|
|
|
|
|
|
Earnings per diluted common
share (GAAP) |
|
$ |
0.46 |
|
|
$ |
0.75 |
|
|
$ |
2.15 |
|
|
$ |
2.92 |
|
Core earnings per diluted
common share (non-GAAP) |
|
$ |
0.62 |
|
|
$ |
0.80 |
|
|
$ |
2.39 |
|
|
$ |
2.77 |
|
|
|
|
|
|
|
|
|
|
Core return on average
assets (non-GAAP): |
|
|
|
|
|
|
|
|
Average assets (GAAP) |
|
$ |
14,086,342 |
|
|
$ |
13,521,595 |
|
|
$ |
14,043,925 |
|
|
$ |
13,033,256 |
|
|
|
|
|
|
|
|
|
|
Return on average assets
(GAAP) |
|
|
0.58 |
% |
|
|
0.99 |
% |
|
|
0.92 |
% |
|
|
1.36 |
% |
Core return on average assets
(non-GAAP) |
|
|
0.78 |
% |
|
|
1.05 |
% |
|
|
1.02 |
% |
|
|
1.28 |
% |
|
|
|
|
|
|
|
|
|
Return/ Core return on
average tangible common equity (non- |
|
|
|
|
|
|
|
|
Net Income (GAAP) |
|
$ |
20,746 |
|
|
$ |
33,584 |
|
|
$ |
96,744 |
|
|
$ |
132,319 |
|
Plus: Amortization of
intangible assets (net of tax) |
|
|
932 |
|
|
|
1,076 |
|
|
|
2,851 |
|
|
|
3,284 |
|
Net income before amortization
of intangible assets |
|
$ |
21,678 |
|
|
$ |
34,660 |
|
|
$ |
99,595 |
|
|
$ |
135,603 |
|
|
|
|
|
|
|
|
|
|
Average total stockholders'
equity (GAAP) |
|
$ |
1,538,553 |
|
|
$ |
1,486,427 |
|
|
$ |
1,522,153 |
|
|
$ |
1,486,920 |
|
Average goodwill |
|
|
(363,436 |
) |
|
|
(363,436 |
) |
|
|
(363,436 |
) |
|
|
(367,190 |
) |
Average other intangible assets, net |
|
|
(16,777 |
) |
|
|
(22,187 |
) |
|
|
(18,068 |
) |
|
|
(23,774 |
) |
Average tangible common equity
(non-GAAP) |
|
$ |
1,158,340 |
|
|
$ |
1,100,804 |
|
|
$ |
1,140,649 |
|
|
$ |
1,095,956 |
|
|
|
|
|
|
|
|
|
|
Return on average tangible
common equity (non-GAAP) |
|
|
7.42 |
% |
|
|
12.49 |
% |
|
|
11.67 |
% |
|
|
16.54 |
% |
Core return on average
tangible common equity (non-GAAP) |
|
|
9.51 |
% |
|
|
12.86 |
% |
|
|
12.56 |
% |
|
|
15.25 |
% |
|
(1) |
|
Tax adjustments have been determined using the combined marginal
federal and state rate of 25.37% and 25.47% for 2023 and 2022,
respectively. |
|
|
|
|
|
Sandy
Spring Bancorp, Inc. and Subsidiaries
RECONCILIATION TABLE - UNAUDITED |
|
|
|
Three Months EndedSeptember 30, |
|
Nine Months EndedSeptember 30, |
(Dollars in thousands) |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Pre-tax pre-provision net income: |
|
|
|
|
|
|
|
|
Net income (GAAP) |
|
$ |
20,746 |
|
|
$ |
33,584 |
|
|
$ |
96,744 |
|
|
$ |
132,319 |
|
Plus/ (less) non-GAAP adjustments: |
|
|
|
|
|
|
|
|
Income tax expense |
|
|
6,890 |
|
|
|
11,588 |
|
|
|
32,832 |
|
|
|
44,275 |
|
Provision/ (credit) for credit losses |
|
|
2,365 |
|
|
|
18,890 |
|
|
|
(14,116 |
) |
|
|
23,571 |
|
Pre-tax pre-provision net
income (non-GAAP) |
|
$ |
30,001 |
|
|
$ |
64,062 |
|
|
$ |
115,460 |
|
|
$ |
200,165 |
|
|
|
|
|
|
|
|
|
|
Efficiency ratio
(GAAP): |
|
|
|
|
|
|
|
|
Non-interest expense |
|
$ |
72,471 |
|
|
$ |
65,780 |
|
|
$ |
207,912 |
|
|
$ |
192,918 |
|
|
|
|
|
|
|
|
|
|
Net interest income plus
non-interest income |
|
$ |
102,472 |
|
|
$ |
129,842 |
|
|
$ |
323,372 |
|
|
$ |
393,083 |
|
|
|
|
|
|
|
|
|
|
Efficiency ratio
(GAAP) |
|
|
70.72 |
% |
|
|
50.66 |
% |
|
|
64.29 |
% |
|
|
49.08 |
% |
|
|
|
|
|
|
|
|
|
Efficiency ratio
(Non-GAAP): |
|
|
|
|
|
|
|
|
Non-interest expense |
|
$ |
72,471 |
|
|
$ |
65,780 |
|
|
$ |
207,912 |
|
|
$ |
192,918 |
|
Less non-GAAP adjustments: |
|
|
|
|
|
|
|
|
Amortization of intangible assets |
|
|
1,245 |
|
|
|
1,432 |
|
|
|
3,820 |
|
|
|
4,406 |
|
Merger, acquisition and disposal expense |
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
1,068 |
|
Severance expense |
|
|
— |
|
|
|
— |
|
|
|
1,939 |
|
|
|
— |
|
Pension settlement expense |
|
|
8,157 |
|
|
|
— |
|
|
|
8,157 |
|
|
|
— |
|
Contingent payment expense |
|
|
— |
|
|
|
1,247 |
|
|
|
36 |
|
|
|
1,247 |
|
Non-interest expense - as
adjusted |
|
$ |
63,069 |
|
|
$ |
63,100 |
|
|
$ |
193,960 |
|
|
$ |
186,197 |
|
|
|
|
|
|
|
|
|
|
Net interest income plus
non-interest income |
|
$ |
102,472 |
|
|
$ |
129,842 |
|
|
$ |
323,372 |
|
|
$ |
393,083 |
|
Plus non-GAAP adjustment: |
|
|
|
|
|
|
|
|
Tax-equivalent income |
|
|
1,068 |
|
|
|
951 |
|
|
|
3,044 |
|
|
|
2,809 |
|
Less/ (plus) non-GAAP adjustment: |
|
|
|
|
|
|
|
|
Investment securities gains |
|
|
— |
|
|
|
2 |
|
|
|
— |
|
|
|
48 |
|
Gain on disposal of assets |
|
|
— |
|
|
|
(183 |
) |
|
|
— |
|
|
|
16,516 |
|
Net interest income plus
non-interest income - as adjusted |
|
$ |
103,540 |
|
|
$ |
130,974 |
|
|
$ |
326,416 |
|
|
$ |
379,328 |
|
|
|
|
|
|
|
|
|
|
Efficiency ratio
(Non-GAAP) |
|
|
60.91 |
% |
|
|
48.18 |
% |
|
|
59.42 |
% |
|
|
49.09 |
% |
|
|
|
|
|
|
|
|
|
Tangible common equity
ratio: |
|
|
|
|
|
|
|
|
Total stockholders'
equity |
|
$ |
1,537,914 |
|
|
$ |
1,451,862 |
|
|
$ |
1,537,914 |
|
|
$ |
1,451,862 |
|
Goodwill |
|
|
(363,436 |
) |
|
|
(363,436 |
) |
|
|
(363,436 |
) |
|
|
(363,436 |
) |
Other intangible assets, net |
|
|
(16,035 |
) |
|
|
(21,262 |
) |
|
|
(16,035 |
) |
|
|
(21,262 |
) |
Tangible common equity |
|
$ |
1,158,443 |
|
|
$ |
1,067,164 |
|
|
$ |
1,158,443 |
|
|
$ |
1,067,164 |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
14,135,085 |
|
|
$ |
13,765,597 |
|
|
$ |
14,135,085 |
|
|
$ |
13,765,597 |
|
Goodwill |
|
|
(363,436 |
) |
|
|
(363,436 |
) |
|
|
(363,436 |
) |
|
|
(363,436 |
) |
Other intangible assets, net |
|
|
(16,035 |
) |
|
|
(21,262 |
) |
|
|
(16,035 |
) |
|
|
(21,262 |
) |
Tangible assets |
|
$ |
13,755,614 |
|
|
$ |
13,380,899 |
|
|
$ |
13,755,614 |
|
|
$ |
13,380,899 |
|
|
|
|
|
|
|
|
|
|
Tangible common equity
ratio |
|
|
8.42 |
% |
|
|
7.98 |
% |
|
|
8.42 |
% |
|
|
7.98 |
% |
|
|
|
|
|
|
|
|
|
Outstanding common shares |
|
|
44,895,158 |
|
|
|
44,644,269 |
|
|
|
44,895,158 |
|
|
|
44,644,269 |
|
Tangible book value per common
share |
|
$ |
25.80 |
|
|
$ |
23.90 |
|
|
$ |
25.80 |
|
|
$ |
23.90 |
|
|
Sandy
Spring Bancorp, Inc. and SubsidiariesCONDENSED
CONSOLIDATED STATEMENTS OF CONDITION - UNAUDITED |
|
(Dollars in thousands) |
|
September 30,2023 |
|
December 31,2022 |
|
September 30,2022 |
Assets |
|
|
|
|
|
|
Cash and due from banks |
|
$ |
80,314 |
|
|
$ |
88,152 |
|
|
$ |
88,780 |
|
Federal funds sold |
|
|
251 |
|
|
|
193 |
|
|
|
213 |
|
Interest-bearing deposits with banks |
|
|
637,026 |
|
|
|
103,887 |
|
|
|
169,815 |
|
Cash and cash equivalents |
|
|
717,591 |
|
|
|
192,232 |
|
|
|
258,808 |
|
Residential mortgage loans held for sale (at fair value) |
|
|
19,235 |
|
|
|
11,706 |
|
|
|
11,469 |
|
Investments held-to-maturity (fair values of $194,411, $220,123 and
$226,030 at September 30, 2023, December 31, 2022 and
September 30, 2022, respectively) |
|
|
241,464 |
|
|
|
259,452 |
|
|
|
265,648 |
|
Investments available-for-sale (at fair value) |
|
|
1,075,089 |
|
|
|
1,214,538 |
|
|
|
1,244,335 |
|
Other investments, at cost |
|
|
75,525 |
|
|
|
69,218 |
|
|
|
77,296 |
|
Total loans |
|
|
11,300,292 |
|
|
|
11,396,706 |
|
|
|
11,218,813 |
|
Less: allowance for credit losses - loans |
|
|
(123,360 |
) |
|
|
(136,242 |
) |
|
|
(128,268 |
) |
Net loans |
|
|
11,176,932 |
|
|
|
11,260,464 |
|
|
|
11,090,545 |
|
Premises and equipment, net |
|
|
72,312 |
|
|
|
67,070 |
|
|
|
64,703 |
|
Other real estate owned |
|
|
261 |
|
|
|
645 |
|
|
|
739 |
|
Accrued interest receivable |
|
|
45,100 |
|
|
|
41,172 |
|
|
|
37,074 |
|
Goodwill |
|
|
363,436 |
|
|
|
363,436 |
|
|
|
363,436 |
|
Other intangible assets, net |
|
|
16,035 |
|
|
|
19,855 |
|
|
|
21,262 |
|
Other assets |
|
|
332,105 |
|
|
|
333,331 |
|
|
|
330,282 |
|
Total
assets |
|
$ |
14,135,085 |
|
|
$ |
13,833,119 |
|
|
$ |
13,765,597 |
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
Noninterest-bearing deposits |
|
$ |
3,013,905 |
|
|
$ |
3,673,300 |
|
|
$ |
3,993,480 |
|
Interest-bearing deposits |
|
|
8,137,107 |
|
|
|
7,280,121 |
|
|
|
6,756,006 |
|
Total deposits |
|
|
11,151,012 |
|
|
|
10,953,421 |
|
|
|
10,749,486 |
|
Securities sold under retail repurchase agreements |
|
|
66,581 |
|
|
|
61,967 |
|
|
|
91,287 |
|
Federal funds purchased |
|
|
— |
|
|
|
260,000 |
|
|
|
115,000 |
|
Federal Reserve Bank borrowings |
|
|
300,000 |
|
|
|
— |
|
|
|
— |
|
Advances from FHLB |
|
|
550,000 |
|
|
|
550,000 |
|
|
|
840,000 |
|
Subordinated debt |
|
|
370,653 |
|
|
|
370,205 |
|
|
|
370,056 |
|
Total borrowings |
|
|
1,287,234 |
|
|
|
1,242,172 |
|
|
|
1,416,343 |
|
Accrued interest payable and other liabilities |
|
|
158,925 |
|
|
|
153,758 |
|
|
|
147,906 |
|
Total liabilities |
|
|
12,597,171 |
|
|
|
12,349,351 |
|
|
|
12,313,735 |
|
|
|
|
|
|
|
|
Stockholders'
equity |
|
|
|
|
|
|
Common stock -- par value $1.00; shares authorized 100,000,000;
shares issued and outstanding 44,895,158, 44,657,054 and 44,644,269
at September 30, 2023, December 31, 2022 and
September 30, 2022, respectively |
|
|
44,895 |
|
|
|
44,657 |
|
|
|
44,644 |
|
Additional paid in capital |
|
|
740,999 |
|
|
|
734,273 |
|
|
|
732,239 |
|
Retained earnings |
|
|
887,512 |
|
|
|
836,789 |
|
|
|
818,049 |
|
Accumulated other comprehensive loss |
|
|
(135,492 |
) |
|
|
(131,951 |
) |
|
|
(143,070 |
) |
Total stockholders' equity |
|
|
1,537,914 |
|
|
|
1,483,768 |
|
|
|
1,451,862 |
|
Total liabilities and
stockholders' equity |
|
$ |
14,135,085 |
|
|
$ |
13,833,119 |
|
|
$ |
13,765,597 |
|
|
Sandy
Spring Bancorp, Inc. and SubsidiariesCONDENSED
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED |
|
|
|
Three Months EndedSeptember 30, |
|
Nine Months EndedSeptember 30, |
(Dollars in thousands, except per share data) |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Interest income: |
|
|
|
|
|
|
|
|
Interest and fees on loans |
|
$ |
147,304 |
|
$ |
121,327 |
|
|
$ |
431,305 |
|
|
$ |
327,042 |
Interest on loans held for sale |
|
|
238 |
|
|
161 |
|
|
|
697 |
|
|
|
504 |
Interest on deposits with banks |
|
|
6,371 |
|
|
774 |
|
|
|
13,979 |
|
|
|
1,245 |
Interest and dividend income on investment securities: |
|
|
|
|
|
|
|
|
Taxable |
|
|
6,682 |
|
|
5,735 |
|
|
|
20,538 |
|
|
|
14,472 |
Tax-advantaged |
|
|
1,811 |
|
|
2,422 |
|
|
|
5,376 |
|
|
|
7,100 |
Interest on federal funds sold |
|
|
5 |
|
|
3 |
|
|
|
13 |
|
|
|
4 |
Total interest income |
|
|
162,411 |
|
|
130,422 |
|
|
|
471,908 |
|
|
|
350,367 |
Interest
expense: |
|
|
|
|
|
|
|
|
Interest on deposits |
|
|
63,102 |
|
|
9,490 |
|
|
|
155,215 |
|
|
|
15,578 |
Interest on retail repurchase agreements and federal funds
purchased |
|
|
4,082 |
|
|
977 |
|
|
|
10,377 |
|
|
|
1,232 |
Interest on advances from FHLB |
|
|
6,200 |
|
|
3,049 |
|
|
|
21,623 |
|
|
|
3,066 |
Interest on subordinated debt |
|
|
3,946 |
|
|
3,946 |
|
|
|
11,839 |
|
|
|
10,130 |
Total interest expense |
|
|
77,330 |
|
|
17,462 |
|
|
|
199,054 |
|
|
|
30,006 |
Net interest
income |
|
|
85,081 |
|
|
112,960 |
|
|
|
272,854 |
|
|
|
320,361 |
Provision/ (credit) for credit
losses |
|
|
2,365 |
|
|
18,890 |
|
|
|
(14,116 |
) |
|
|
23,571 |
Net interest income after provision/ (credit) for credit
losses |
|
|
82,716 |
|
|
94,070 |
|
|
|
286,970 |
|
|
|
296,790 |
Non-interest
income: |
|
|
|
|
|
|
|
|
Investment securities gains |
|
|
— |
|
|
2 |
|
|
|
— |
|
|
|
48 |
Gain on disposal of assets |
|
|
— |
|
|
(183 |
) |
|
|
— |
|
|
|
16,516 |
Service charges on deposit accounts |
|
|
2,704 |
|
|
2,591 |
|
|
|
7,698 |
|
|
|
7,384 |
Mortgage banking activities |
|
|
1,682 |
|
|
1,566 |
|
|
|
4,744 |
|
|
|
5,347 |
Wealth management income |
|
|
9,391 |
|
|
8,867 |
|
|
|
27,414 |
|
|
|
27,302 |
Insurance agency commissions |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
2,927 |
Income from bank owned life insurance |
|
|
845 |
|
|
693 |
|
|
|
3,003 |
|
|
|
2,191 |
Bank card fees |
|
|
450 |
|
|
438 |
|
|
|
1,315 |
|
|
|
3,916 |
Other income |
|
|
2,319 |
|
|
2,908 |
|
|
|
6,344 |
|
|
|
7,091 |
Total non-interest income |
|
|
17,391 |
|
|
16,882 |
|
|
|
50,518 |
|
|
|
72,722 |
Non-interest
expense: |
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
44,853 |
|
|
40,126 |
|
|
|
124,710 |
|
|
|
119,049 |
Occupancy expense of premises |
|
|
4,609 |
|
|
4,759 |
|
|
|
14,220 |
|
|
|
14,527 |
Equipment expenses |
|
|
3,811 |
|
|
3,825 |
|
|
|
11,688 |
|
|
|
10,920 |
Marketing |
|
|
729 |
|
|
1,370 |
|
|
|
3,861 |
|
|
|
3,843 |
Outside data services |
|
|
2,819 |
|
|
2,509 |
|
|
|
8,186 |
|
|
|
7,492 |
FDIC insurance |
|
|
2,333 |
|
|
1,268 |
|
|
|
6,846 |
|
|
|
3,330 |
Amortization of intangible assets |
|
|
1,245 |
|
|
1,432 |
|
|
|
3,820 |
|
|
|
4,406 |
Merger, acquisition and disposal expense |
|
|
— |
|
|
1 |
|
|
|
— |
|
|
|
1,068 |
Professional fees and services |
|
|
4,509 |
|
|
2,207 |
|
|
|
12,354 |
|
|
|
6,596 |
Other expenses |
|
|
7,563 |
|
|
8,283 |
|
|
|
22,227 |
|
|
|
21,687 |
Total non-interest expense |
|
|
72,471 |
|
|
65,780 |
|
|
|
207,912 |
|
|
|
192,918 |
Income before income tax
expense |
|
|
27,636 |
|
|
45,172 |
|
|
|
129,576 |
|
|
|
176,594 |
Income tax expense |
|
|
6,890 |
|
|
11,588 |
|
|
|
32,832 |
|
|
|
44,275 |
Net income |
|
$ |
20,746 |
|
$ |
33,584 |
|
|
$ |
96,744 |
|
|
$ |
132,319 |
|
|
|
|
|
|
|
|
|
Net income per share
amounts: |
|
|
|
|
|
|
|
|
Basic net income per common share |
|
$ |
0.46 |
|
$ |
0.75 |
|
|
$ |
2.16 |
|
|
$ |
2.93 |
Diluted net income per common share |
|
$ |
0.46 |
|
$ |
0.75 |
|
|
$ |
2.15 |
|
|
$ |
2.92 |
Dividends declared per share |
|
$ |
0.34 |
|
$ |
0.34 |
|
|
$ |
1.02 |
|
|
$ |
1.02 |
|
Sandy
Spring Bancorp, Inc. and SubsidiariesHISTORICAL
TRENDS - QUARTERLY FINANCIAL DATA - UNAUDITED |
|
|
|
2023 |
|
2022 |
(Dollars in thousands, except per share data) |
|
Q3 |
|
Q2 |
|
Q1 |
|
Q4 |
|
Q3 |
|
Q2 |
|
Q1 |
Profitability for the quarter: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax-equivalent interest income |
|
$ |
163,479 |
|
|
$ |
159,156 |
|
|
$ |
152,317 |
|
|
$ |
146,332 |
|
|
$ |
131,373 |
|
|
$ |
114,901 |
|
|
$ |
106,902 |
|
Interest expense |
|
|
77,330 |
|
|
|
67,679 |
|
|
|
54,045 |
|
|
|
38,657 |
|
|
|
17,462 |
|
|
|
7,959 |
|
|
|
4,585 |
|
Tax-equivalent net interest income |
|
|
86,149 |
|
|
|
91,477 |
|
|
|
98,272 |
|
|
|
107,675 |
|
|
|
113,911 |
|
|
|
106,942 |
|
|
|
102,317 |
|
Tax-equivalent adjustment |
|
|
1,068 |
|
|
|
1,006 |
|
|
|
970 |
|
|
|
1,032 |
|
|
|
951 |
|
|
|
992 |
|
|
|
866 |
|
Provision/ (credit) for credit
losses |
|
|
2,365 |
|
|
|
5,055 |
|
|
|
(21,536 |
) |
|
|
10,801 |
|
|
|
18,890 |
|
|
|
3,046 |
|
|
|
1,635 |
|
Non-interest income |
|
|
17,391 |
|
|
|
17,176 |
|
|
|
15,951 |
|
|
|
14,297 |
|
|
|
16,882 |
|
|
|
35,245 |
|
|
|
20,595 |
|
Non-interest expense |
|
|
72,471 |
|
|
|
69,136 |
|
|
|
66,305 |
|
|
|
64,375 |
|
|
|
65,780 |
|
|
|
64,991 |
|
|
|
62,147 |
|
Income before income tax
expense |
|
|
27,636 |
|
|
|
33,456 |
|
|
|
68,484 |
|
|
|
45,764 |
|
|
|
45,172 |
|
|
|
73,158 |
|
|
|
58,264 |
|
Income tax expense |
|
|
6,890 |
|
|
|
8,711 |
|
|
|
17,231 |
|
|
|
11,784 |
|
|
|
11,588 |
|
|
|
18,358 |
|
|
|
14,329 |
|
Net income |
|
$ |
20,746 |
|
|
$ |
24,745 |
|
|
$ |
51,253 |
|
|
$ |
33,980 |
|
|
$ |
33,584 |
|
|
$ |
54,800 |
|
|
$ |
43,935 |
|
GAAP financial
performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
|
0.58 |
% |
|
|
0.70 |
% |
|
|
1.49 |
% |
|
|
0.98 |
% |
|
|
0.99 |
% |
|
|
1.69 |
% |
|
|
1.42 |
% |
Return on average common
equity |
|
|
5.35 |
% |
|
|
6.46 |
% |
|
|
13.93 |
% |
|
|
9.23 |
% |
|
|
8.96 |
% |
|
|
14.97 |
% |
|
|
11.83 |
% |
Return on average tangible
common equity |
|
|
7.42 |
% |
|
|
8.93 |
% |
|
|
19.10 |
% |
|
|
12.91 |
% |
|
|
12.49 |
% |
|
|
20.83 |
% |
|
|
16.45 |
% |
Net interest margin |
|
|
2.55 |
% |
|
|
2.73 |
% |
|
|
2.99 |
% |
|
|
3.26 |
% |
|
|
3.53 |
% |
|
|
3.49 |
% |
|
|
3.49 |
% |
Efficiency ratio - GAAP
basis |
|
|
70.72 |
% |
|
|
64.22 |
% |
|
|
58.55 |
% |
|
|
53.23 |
% |
|
|
50.66 |
% |
|
|
46.03 |
% |
|
|
50.92 |
% |
Non-GAAP financial
performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax pre-provision net
income |
|
$ |
30,001 |
|
|
$ |
38,511 |
|
|
$ |
46,948 |
|
|
$ |
56,565 |
|
|
$ |
64,062 |
|
|
$ |
76,204 |
|
|
$ |
59,899 |
|
Core after-tax earnings |
|
$ |
27,766 |
|
|
$ |
27,136 |
|
|
$ |
52,253 |
|
|
$ |
35,322 |
|
|
$ |
35,695 |
|
|
$ |
44,238 |
|
|
$ |
45,050 |
|
Core return on average
assets |
|
|
0.78 |
% |
|
|
0.77 |
% |
|
|
1.52 |
% |
|
|
1.02 |
% |
|
|
1.05 |
% |
|
|
1.37 |
% |
|
|
1.45 |
% |
Core return on average common
equity |
|
|
7.16 |
% |
|
|
7.09 |
% |
|
|
14.20 |
% |
|
|
9.60 |
% |
|
|
9.53 |
% |
|
|
12.09 |
% |
|
|
12.13 |
% |
Core return on average
tangible common equity |
|
|
9.51 |
% |
|
|
9.43 |
% |
|
|
19.11 |
% |
|
|
13.02 |
% |
|
|
12.86 |
% |
|
|
16.49 |
% |
|
|
16.45 |
% |
Core earnings per diluted
common share |
|
$ |
0.62 |
|
|
$ |
0.60 |
|
|
$ |
1.16 |
|
|
$ |
0.79 |
|
|
$ |
0.80 |
|
|
$ |
0.98 |
|
|
$ |
0.99 |
|
Efficiency ratio - Non-GAAP
basis |
|
|
60.91 |
% |
|
|
60.68 |
% |
|
|
56.87 |
% |
|
|
51.46 |
% |
|
|
48.18 |
% |
|
|
49.79 |
% |
|
|
49.34 |
% |
Per share
data: |
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to
common shareholders |
|
$ |
20,719 |
|
|
$ |
24,712 |
|
|
$ |
51,084 |
|
|
$ |
33,866 |
|
|
$ |
33,470 |
|
|
$ |
54,606 |
|
|
$ |
43,667 |
|
Basic net income per common
share |
|
$ |
0.46 |
|
|
$ |
0.55 |
|
|
$ |
1.14 |
|
|
$ |
0.76 |
|
|
$ |
0.75 |
|
|
$ |
1.21 |
|
|
$ |
0.97 |
|
Diluted net income per common
share |
|
$ |
0.46 |
|
|
$ |
0.55 |
|
|
$ |
1.14 |
|
|
$ |
0.76 |
|
|
$ |
0.75 |
|
|
$ |
1.21 |
|
|
$ |
0.96 |
|
Weighted average diluted
common shares |
|
|
44,960,455 |
|
|
|
44,888,759 |
|
|
|
44,872,582 |
|
|
|
44,828,827 |
|
|
|
44,780,560 |
|
|
|
45,111,693 |
|
|
|
45,333,292 |
|
Dividends declared per
share |
|
$ |
0.34 |
|
|
$ |
0.34 |
|
|
$ |
0.34 |
|
|
$ |
0.34 |
|
|
$ |
0.34 |
|
|
$ |
0.34 |
|
|
$ |
0.34 |
|
Non-interest
income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities gains/
(losses) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(393 |
) |
|
$ |
2 |
|
|
$ |
38 |
|
|
$ |
8 |
|
Gain/ (loss) on disposal of
assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(183 |
) |
|
|
16,699 |
|
|
|
— |
|
Service charges on deposit
accounts |
|
|
2,704 |
|
|
|
2,606 |
|
|
|
2,388 |
|
|
|
2,419 |
|
|
|
2,591 |
|
|
|
2,467 |
|
|
|
2,326 |
|
Mortgage banking
activities |
|
|
1,682 |
|
|
|
1,817 |
|
|
|
1,245 |
|
|
|
783 |
|
|
|
1,566 |
|
|
|
1,483 |
|
|
|
2,298 |
|
Wealth management income |
|
|
9,391 |
|
|
|
9,031 |
|
|
|
8,992 |
|
|
|
8,472 |
|
|
|
8,867 |
|
|
|
9,098 |
|
|
|
9,337 |
|
Insurance agency
commissions |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
812 |
|
|
|
2,115 |
|
Income from bank owned life
insurance |
|
|
845 |
|
|
|
1,251 |
|
|
|
907 |
|
|
|
950 |
|
|
|
693 |
|
|
|
703 |
|
|
|
795 |
|
Bank card fees |
|
|
450 |
|
|
|
447 |
|
|
|
418 |
|
|
|
463 |
|
|
|
438 |
|
|
|
1,810 |
|
|
|
1,668 |
|
Other income |
|
|
2,319 |
|
|
|
2,024 |
|
|
|
2,001 |
|
|
|
1,603 |
|
|
|
2,908 |
|
|
|
2,135 |
|
|
|
2,048 |
|
Total non-interest income |
|
$ |
17,391 |
|
|
$ |
17,176 |
|
|
$ |
15,951 |
|
|
$ |
14,297 |
|
|
$ |
16,882 |
|
|
$ |
35,245 |
|
|
$ |
20,595 |
|
Non-interest
expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits |
|
$ |
44,853 |
|
|
$ |
40,931 |
|
|
$ |
38,926 |
|
|
$ |
39,455 |
|
|
$ |
40,126 |
|
|
$ |
39,550 |
|
|
$ |
39,373 |
|
Occupancy expense of
premises |
|
|
4,609 |
|
|
|
4,764 |
|
|
|
4,847 |
|
|
|
4,728 |
|
|
|
4,759 |
|
|
|
4,734 |
|
|
|
5,034 |
|
Equipment expenses |
|
|
3,811 |
|
|
|
3,760 |
|
|
|
4,117 |
|
|
|
3,859 |
|
|
|
3,825 |
|
|
|
3,559 |
|
|
|
3,536 |
|
Marketing |
|
|
729 |
|
|
|
1,589 |
|
|
|
1,543 |
|
|
|
1,354 |
|
|
|
1,370 |
|
|
|
1,280 |
|
|
|
1,193 |
|
Outside data services |
|
|
2,819 |
|
|
|
2,853 |
|
|
|
2,514 |
|
|
|
2,707 |
|
|
|
2,509 |
|
|
|
2,564 |
|
|
|
2,419 |
|
FDIC insurance |
|
|
2,333 |
|
|
|
2,375 |
|
|
|
2,138 |
|
|
|
1,462 |
|
|
|
1,268 |
|
|
|
1,078 |
|
|
|
984 |
|
Amortization of intangible
assets |
|
|
1,245 |
|
|
|
1,269 |
|
|
|
1,306 |
|
|
|
1,408 |
|
|
|
1,432 |
|
|
|
1,466 |
|
|
|
1,508 |
|
Merger, acquisition and
disposal expense |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
1,067 |
|
|
|
— |
|
Professional fees and
services |
|
|
4,509 |
|
|
|
4,161 |
|
|
|
3,684 |
|
|
|
2,573 |
|
|
|
2,207 |
|
|
|
2,372 |
|
|
|
2,017 |
|
Other expenses |
|
|
7,563 |
|
|
|
7,434 |
|
|
|
7,230 |
|
|
|
6,829 |
|
|
|
8,283 |
|
|
|
7,321 |
|
|
|
6,083 |
|
Total non-interest expense |
|
$ |
72,471 |
|
|
$ |
69,136 |
|
|
$ |
66,305 |
|
|
$ |
64,375 |
|
|
$ |
65,780 |
|
|
$ |
64,991 |
|
|
$ |
62,147 |
|
|
Sandy
Spring Bancorp, Inc. and SubsidiariesHISTORICAL
TRENDS - QUARTERLY FINANCIAL DATA - UNAUDITED |
|
|
|
2023 |
|
2022 |
(Dollars in thousands, except per share data) |
|
Q3 |
|
Q2 |
|
Q1 |
|
Q4 |
|
Q3 |
|
Q2 |
|
Q1 |
Balance
sheets at quarter end: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial investor real estate loans |
|
$ |
5,137,694 |
|
|
$ |
5,131,210 |
|
|
$ |
5,167,456 |
|
|
$ |
5,130,094 |
|
|
$ |
5,066,843 |
|
|
$ |
4,761,658 |
|
|
$ |
4,388,275 |
|
Commercial owner-occupied real
estate loans |
|
|
1,760,384 |
|
|
|
1,770,135 |
|
|
|
1,769,928 |
|
|
|
1,775,037 |
|
|
|
1,743,724 |
|
|
|
1,767,326 |
|
|
|
1,692,253 |
|
Commercial AD&C loans |
|
|
938,673 |
|
|
|
1,045,742 |
|
|
|
1,046,665 |
|
|
|
1,090,028 |
|
|
|
1,143,783 |
|
|
|
1,094,528 |
|
|
|
1,089,331 |
|
Commercial business loans |
|
|
1,454,709 |
|
|
|
1,423,614 |
|
|
|
1,437,478 |
|
|
|
1,455,885 |
|
|
|
1,393,634 |
|
|
|
1,353,380 |
|
|
|
1,349,602 |
|
Residential mortgage
loans |
|
|
1,432,051 |
|
|
|
1,385,743 |
|
|
|
1,328,524 |
|
|
|
1,287,933 |
|
|
|
1,218,552 |
|
|
|
1,147,577 |
|
|
|
1,000,697 |
|
Residential construction
loans |
|
|
160,345 |
|
|
|
190,690 |
|
|
|
223,456 |
|
|
|
224,772 |
|
|
|
229,243 |
|
|
|
235,486 |
|
|
|
204,259 |
|
Consumer loans |
|
|
416,436 |
|
|
|
422,505 |
|
|
|
421,734 |
|
|
|
432,957 |
|
|
|
423,034 |
|
|
|
426,335 |
|
|
|
419,911 |
|
Total loans |
|
|
11,300,292 |
|
|
|
11,369,639 |
|
|
|
11,395,241 |
|
|
|
11,396,706 |
|
|
|
11,218,813 |
|
|
|
10,786,290 |
|
|
|
10,144,328 |
|
Allowance for credit losses -
loans |
|
|
(123,360 |
) |
|
|
(120,287 |
) |
|
|
(117,613 |
) |
|
|
(136,242 |
) |
|
|
(128,268 |
) |
|
|
(113,670 |
) |
|
|
(110,588 |
) |
Loans held for sale |
|
|
19,235 |
|
|
|
21,476 |
|
|
|
16,262 |
|
|
|
11,706 |
|
|
|
11,469 |
|
|
|
23,610 |
|
|
|
17,537 |
|
Investment securities |
|
|
1,392,078 |
|
|
|
1,463,554 |
|
|
|
1,528,336 |
|
|
|
1,543,208 |
|
|
|
1,587,279 |
|
|
|
1,595,424 |
|
|
|
1,586,441 |
|
Total assets |
|
|
14,135,085 |
|
|
|
13,994,545 |
|
|
|
14,129,007 |
|
|
|
13,833,119 |
|
|
|
13,765,597 |
|
|
|
13,303,009 |
|
|
|
12,967,416 |
|
Noninterest-bearing demand
deposits |
|
|
3,013,905 |
|
|
|
3,079,896 |
|
|
|
3,228,678 |
|
|
|
3,673,300 |
|
|
|
3,993,480 |
|
|
|
4,129,440 |
|
|
|
4,039,797 |
|
Total deposits |
|
|
11,151,012 |
|
|
|
10,958,922 |
|
|
|
11,075,991 |
|
|
|
10,953,421 |
|
|
|
10,749,486 |
|
|
|
10,969,461 |
|
|
|
10,852,794 |
|
Customer repurchase
agreements |
|
|
66,581 |
|
|
|
74,510 |
|
|
|
47,627 |
|
|
|
61,967 |
|
|
|
91,287 |
|
|
|
110,744 |
|
|
|
130,784 |
|
Total stockholders'
equity |
|
|
1,537,914 |
|
|
|
1,539,032 |
|
|
|
1,536,865 |
|
|
|
1,483,768 |
|
|
|
1,451,862 |
|
|
|
1,477,169 |
|
|
|
1,488,910 |
|
Quarterly
average balance sheets: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial investor real
estate loans |
|
$ |
5,125,459 |
|
|
$ |
5,146,632 |
|
|
$ |
5,136,204 |
|
|
$ |
5,082,697 |
|
|
$ |
4,898,683 |
|
|
$ |
4,512,937 |
|
|
$ |
4,220,246 |
|
Commercial owner-occupied real
estate loans |
|
|
1,769,717 |
|
|
|
1,773,039 |
|
|
|
1,769,680 |
|
|
|
1,753,351 |
|
|
|
1,755,891 |
|
|
|
1,727,325 |
|
|
|
1,683,557 |
|
Commercial AD&C loans |
|
|
995,682 |
|
|
|
1,057,205 |
|
|
|
1,082,791 |
|
|
|
1,136,780 |
|
|
|
1,115,531 |
|
|
|
1,096,369 |
|
|
|
1,102,660 |
|
Commercial business loans |
|
|
1,442,518 |
|
|
|
1,441,489 |
|
|
|
1,444,588 |
|
|
|
1,373,565 |
|
|
|
1,327,218 |
|
|
|
1,334,350 |
|
|
|
1,372,755 |
|
Residential mortgage
loans |
|
|
1,406,929 |
|
|
|
1,353,809 |
|
|
|
1,307,761 |
|
|
|
1,251,829 |
|
|
|
1,177,664 |
|
|
|
1,070,836 |
|
|
|
964,056 |
|
Residential construction
loans |
|
|
174,204 |
|
|
|
211,590 |
|
|
|
223,313 |
|
|
|
231,318 |
|
|
|
235,123 |
|
|
|
221,031 |
|
|
|
197,366 |
|
Consumer loans |
|
|
421,189 |
|
|
|
423,306 |
|
|
|
424,122 |
|
|
|
426,134 |
|
|
|
422,963 |
|
|
|
421,022 |
|
|
|
424,859 |
|
Total loans |
|
|
11,335,698 |
|
|
|
11,407,070 |
|
|
|
11,388,459 |
|
|
|
11,255,674 |
|
|
|
10,933,073 |
|
|
|
10,383,870 |
|
|
|
9,965,499 |
|
Loans held for sale |
|
|
13,714 |
|
|
|
17,480 |
|
|
|
8,324 |
|
|
|
10,901 |
|
|
|
15,211 |
|
|
|
12,744 |
|
|
|
17,594 |
|
Investment securities |
|
|
1,589,342 |
|
|
|
1,639,324 |
|
|
|
1,679,593 |
|
|
|
1,717,455 |
|
|
|
1,734,036 |
|
|
|
1,686,181 |
|
|
|
1,617,615 |
|
Interest-earning assets |
|
|
13,444,117 |
|
|
|
13,423,589 |
|
|
|
13,316,165 |
|
|
|
13,134,234 |
|
|
|
12,833,758 |
|
|
|
12,283,834 |
|
|
|
11,859,803 |
|
Total assets |
|
|
14,086,342 |
|
|
|
14,094,653 |
|
|
|
13,949,276 |
|
|
|
13,769,472 |
|
|
|
13,521,595 |
|
|
|
12,991,692 |
|
|
|
12,576,089 |
|
Noninterest-bearing demand
deposits |
|
|
3,041,101 |
|
|
|
3,137,971 |
|
|
|
3,480,433 |
|
|
|
3,833,275 |
|
|
|
3,995,702 |
|
|
|
4,001,762 |
|
|
|
3,758,732 |
|
Total deposits |
|
|
11,076,724 |
|
|
|
10,928,038 |
|
|
|
11,049,991 |
|
|
|
11,025,843 |
|
|
|
10,740,999 |
|
|
|
10,829,221 |
|
|
|
10,542,029 |
|
Customer repurchase
agreements |
|
|
67,298 |
|
|
|
58,382 |
|
|
|
60,626 |
|
|
|
74,797 |
|
|
|
104,742 |
|
|
|
122,728 |
|
|
|
131,487 |
|
Total interest-bearing
liabilities |
|
|
9,332,617 |
|
|
|
9,257,652 |
|
|
|
8,806,720 |
|
|
|
8,310,278 |
|
|
|
7,892,230 |
|
|
|
7,377,045 |
|
|
|
7,163,641 |
|
Total stockholders'
equity |
|
|
1,538,553 |
|
|
|
1,535,465 |
|
|
|
1,491,929 |
|
|
|
1,460,254 |
|
|
|
1,486,427 |
|
|
|
1,468,036 |
|
|
|
1,506,516 |
|
Financial
measures: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average equity to average
assets |
|
|
10.92 |
% |
|
|
10.89 |
% |
|
|
10.70 |
% |
|
|
10.61 |
% |
|
|
10.99 |
% |
|
|
11.30 |
% |
|
|
11.98 |
% |
Average investment securities
to average earning assets |
|
|
11.82 |
% |
|
|
12.21 |
% |
|
|
12.61 |
% |
|
|
13.08 |
% |
|
|
13.51 |
% |
|
|
13.73 |
% |
|
|
13.64 |
% |
Average loans to average
earning assets |
|
|
84.32 |
% |
|
|
84.98 |
% |
|
|
85.52 |
% |
|
|
85.70 |
% |
|
|
85.19 |
% |
|
|
84.53 |
% |
|
|
84.03 |
% |
Loans to assets |
|
|
79.94 |
% |
|
|
81.24 |
% |
|
|
80.65 |
% |
|
|
82.39 |
% |
|
|
81.50 |
% |
|
|
81.08 |
% |
|
|
78.23 |
% |
Loans to deposits |
|
|
101.34 |
% |
|
|
103.75 |
% |
|
|
102.88 |
% |
|
|
104.05 |
% |
|
|
104.37 |
% |
|
|
98.33 |
% |
|
|
93.47 |
% |
Assets under management |
|
$ |
5,536,499 |
|
|
$ |
5,742,888 |
|
|
$ |
5,477,560 |
|
|
$ |
5,255,306 |
|
|
$ |
4,969,092 |
|
|
$ |
5,171,321 |
|
|
$ |
5,793,787 |
|
Capital
measures: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 leverage (1) |
|
|
9.50 |
% |
|
|
9.42 |
% |
|
|
9.44 |
% |
|
|
9.33 |
% |
|
|
9.33 |
% |
|
|
9.53 |
% |
|
|
9.66 |
% |
Common equity tier 1 capital
to risk-weighted assets (1) |
|
|
10.83 |
% |
|
|
10.65 |
% |
|
|
10.53 |
% |
|
|
10.23 |
% |
|
|
10.18 |
% |
|
|
10.42 |
% |
|
|
10.78 |
% |
Tier 1 capital to
risk-weighted assets (1) |
|
|
10.83 |
% |
|
|
10.65 |
% |
|
|
10.53 |
% |
|
|
10.23 |
% |
|
|
10.18 |
% |
|
|
10.42 |
% |
|
|
10.78 |
% |
Total regulatory capital to
risk-weighted assets (1) |
|
|
14.85 |
% |
|
|
14.60 |
% |
|
|
14.43 |
% |
|
|
14.20 |
% |
|
|
14.15 |
% |
|
|
14.46 |
% |
|
|
15.02 |
% |
Book value per common
share |
|
$ |
34.26 |
|
|
$ |
34.31 |
|
|
$ |
34.37 |
|
|
$ |
33.23 |
|
|
$ |
32.52 |
|
|
$ |
33.10 |
|
|
$ |
32.97 |
|
Outstanding common shares |
|
|
44,895,158 |
|
|
|
44,862,369 |
|
|
|
44,712,497 |
|
|
|
44,657,054 |
|
|
|
44,644,269 |
|
|
|
44,629,697 |
|
|
|
45,162,908 |
|
|
(1) |
|
Estimated ratio at September 30, 2023. |
|
|
|
|
|
Sandy
Spring Bancorp, Inc. and SubsidiariesLOAN
PORTFOLIO QUALITY DETAIL - UNAUDITED |
|
|
|
2023 |
|
2022 |
(Dollars in thousands) |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
Non-performing assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans 90 days past due: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial investor real estate |
|
$ |
— |
|
$ |
— |
|
$ |
215 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
Commercial owner-occupied real estate |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
Commercial AD&C |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
Commercial business |
|
|
415 |
|
|
29 |
|
|
3,002 |
|
|
1,002 |
|
|
1,966 |
|
|
— |
|
|
— |
Residential real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage |
|
|
— |
|
|
692 |
|
|
352 |
|
|
— |
|
|
167 |
|
|
353 |
|
|
296 |
Residential construction |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
Consumer |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
34 |
|
|
— |
|
|
— |
Total loans 90 days past
due |
|
|
415 |
|
|
721 |
|
|
3,569 |
|
|
1,002 |
|
|
2,167 |
|
|
353 |
|
|
296 |
Non-accrual loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial investor real estate |
|
|
20,108 |
|
|
20,381 |
|
|
15,451 |
|
|
9,943 |
|
|
14,038 |
|
|
11,245 |
|
|
11,743 |
Commercial owner-occupied real estate |
|
|
4,744 |
|
|
4,846 |
|
|
4,949 |
|
|
5,019 |
|
|
6,294 |
|
|
7,869 |
|
|
8,083 |
Commercial AD&C |
|
|
1,422 |
|
|
569 |
|
|
— |
|
|
— |
|
|
— |
|
|
1,353 |
|
|
1,081 |
Commercial business |
|
|
9,671 |
|
|
9,393 |
|
|
9,443 |
|
|
7,322 |
|
|
7,198 |
|
|
7,542 |
|
|
8,357 |
Residential real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage |
|
|
10,766 |
|
|
10,153 |
|
|
8,935 |
|
|
7,439 |
|
|
7,514 |
|
|
7,305 |
|
|
8,148 |
Residential construction |
|
|
449 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1 |
|
|
51 |
Consumer |
|
|
4,187 |
|
|
3,396 |
|
|
4,900 |
|
|
5,059 |
|
|
5,173 |
|
|
5,692 |
|
|
6,406 |
Total non-accrual loans |
|
|
51,347 |
|
|
48,738 |
|
|
43,678 |
|
|
34,782 |
|
|
40,217 |
|
|
41,007 |
|
|
43,869 |
Total restructured loans -
accruing (1) |
|
|
— |
|
|
— |
|
|
— |
|
|
3,575 |
|
|
2,077 |
|
|
2,119 |
|
|
2,161 |
Total non-performing loans |
|
|
51,762 |
|
|
49,459 |
|
|
47,247 |
|
|
39,359 |
|
|
44,461 |
|
|
43,479 |
|
|
46,326 |
Other assets and other real
estate owned (OREO) |
|
|
261 |
|
|
611 |
|
|
645 |
|
|
645 |
|
|
739 |
|
|
739 |
|
|
1,034 |
Total non-performing assets |
|
$ |
52,023 |
|
$ |
50,070 |
|
$ |
47,892 |
|
$ |
40,004 |
|
$ |
45,200 |
|
$ |
44,218 |
|
$ |
47,360 |
|
|
For the Quarter Ended, |
(Dollars in thousands) |
|
September 30,2023 |
|
June 30,2023 |
|
March 31,2023 |
|
December 31,2022 |
|
September 30,2022 |
|
June 30,2022 |
|
March 31,2022 |
Analysis of non-accrual loan activity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period |
|
$ |
48,738 |
|
|
$ |
43,678 |
|
|
$ |
34,782 |
|
|
$ |
40,217 |
|
|
$ |
41,007 |
|
|
$ |
43,869 |
|
|
$ |
46,086 |
|
Non-accrual balances transferred to OREO |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Non-accrual balances charged-off |
|
|
(183 |
) |
|
|
(2,049 |
) |
|
|
(126 |
) |
|
|
(22 |
) |
|
|
(197 |
) |
|
|
(376 |
) |
|
|
(265 |
) |
Net payments or draws |
|
|
(1,545 |
) |
|
|
(1,654 |
) |
|
|
(10,212 |
) |
|
|
(9,535 |
) |
|
|
(3,509 |
) |
|
|
(3,234 |
) |
|
|
(2,787 |
) |
Loans placed on non-accrual |
|
|
4,967 |
|
|
|
9,276 |
|
|
|
19,714 |
|
|
|
5,467 |
|
|
|
4,212 |
|
|
|
948 |
|
|
|
1,503 |
|
Non-accrual loans brought current |
|
|
(630 |
) |
|
|
(513 |
) |
|
|
(480 |
) |
|
|
(1,345 |
) |
|
|
(1,296 |
) |
|
|
(200 |
) |
|
|
(668 |
) |
Balance at end of period |
|
$ |
51,347 |
|
|
$ |
48,738 |
|
|
$ |
43,678 |
|
|
$ |
34,782 |
|
|
$ |
40,217 |
|
|
$ |
41,007 |
|
|
$ |
43,869 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Analysis of allowance
for credit losses - loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of
period |
|
$ |
120,287 |
|
|
$ |
117,613 |
|
|
$ |
136,242 |
|
|
$ |
128,268 |
|
|
$ |
113,670 |
|
|
$ |
110,588 |
|
|
$ |
109,145 |
|
Provision/ (credit) for credit losses - loans |
|
|
3,171 |
|
|
|
4,454 |
|
|
|
(18,945 |
) |
|
|
7,907 |
|
|
|
14,092 |
|
|
|
3,046 |
|
|
|
1,635 |
|
Less loans charged-off, net of recoveries: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial investor real estate |
|
|
(3 |
) |
|
|
(14 |
) |
|
|
(5 |
) |
|
|
(1 |
) |
|
|
— |
|
|
|
(300 |
) |
|
|
(19 |
) |
Commercial owner-occupied real estate |
|
|
(25 |
) |
|
|
(27 |
) |
|
|
(26 |
) |
|
|
(27 |
) |
|
|
(10 |
) |
|
|
(12 |
) |
|
|
— |
|
Commercial AD&C |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Commercial business |
|
|
15 |
|
|
|
363 |
|
|
|
(127 |
) |
|
|
(13 |
) |
|
|
(512 |
) |
|
|
331 |
|
|
|
111 |
|
Residential real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage |
|
|
(4 |
) |
|
|
35 |
|
|
|
21 |
|
|
|
(50 |
) |
|
|
(8 |
) |
|
|
(9 |
) |
|
|
120 |
|
Residential construction |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3 |
) |
|
|
(5 |
) |
|
|
— |
|
Consumer |
|
|
115 |
|
|
|
1,423 |
|
|
|
(179 |
) |
|
|
24 |
|
|
|
27 |
|
|
|
(41 |
) |
|
|
(20 |
) |
Net charge-offs/
(recoveries) |
|
|
98 |
|
|
|
1,780 |
|
|
|
(316 |
) |
|
|
(67 |
) |
|
|
(506 |
) |
|
|
(36 |
) |
|
|
192 |
|
Balance at the end of
period |
|
$ |
123,360 |
|
|
$ |
120,287 |
|
|
$ |
117,613 |
|
|
$ |
136,242 |
|
|
$ |
128,268 |
|
|
$ |
113,670 |
|
|
$ |
110,588 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset quality
ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans to total loans |
|
|
0.46 |
% |
|
|
0.44 |
% |
|
|
0.41 |
% |
|
|
0.35 |
% |
|
|
0.40 |
% |
|
|
0.40 |
% |
|
|
0.46 |
% |
Non-performing assets to total assets |
|
|
0.37 |
% |
|
|
0.36 |
% |
|
|
0.34 |
% |
|
|
0.29 |
% |
|
|
0.33 |
% |
|
|
0.33 |
% |
|
|
0.37 |
% |
Allowance for credit losses to loans |
|
|
1.09 |
% |
|
|
1.06 |
% |
|
|
1.03 |
% |
|
|
1.20 |
% |
|
|
1.14 |
% |
|
|
1.05 |
% |
|
|
1.09 |
% |
Allowance for credit losses to non-performing loans |
|
|
238.32 |
% |
|
|
243.21 |
% |
|
|
248.93 |
% |
|
|
346.15 |
% |
|
|
288.50 |
% |
|
|
261.44 |
% |
|
|
238.72 |
% |
Annualized net charge-offs/ (recoveries) to average loans |
|
|
— |
% |
|
|
0.06 |
% |
|
(0.01 |
)% |
|
|
— |
% |
|
(0.02 |
)% |
|
|
— |
% |
|
|
0.01 |
% |
|
(1) |
|
Effective January 1, 2023, the Company adopted ASU 2022-02, which
eliminated the accounting and recognition of troubled debt
restructurings ("TDRs"). |
|
|
|
|
|
Sandy
Spring Bancorp, Inc. and SubsidiariesCONSOLIDATED
AVERAGE BALANCES, YIELDS AND RATES - UNAUDITED |
|
|
|
Three Months Ended September 30, |
|
|
2023 |
|
2022 |
(Dollars in thousands and tax-equivalent) |
|
AverageBalances |
|
Interest (1) |
|
AnnualizedAverageYield/Rate |
|
AverageBalances |
|
Interest (1) |
|
AnnualizedAverageYield/Rate |
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial investor real estate loans |
|
$ |
5,125,459 |
|
|
$ |
60,482 |
|
4.68 |
% |
|
$ |
4,898,683 |
|
|
$ |
51,463 |
|
4.17 |
% |
Commercial owner-occupied real
estate loans |
|
|
1,769,717 |
|
|
|
20,865 |
|
4.68 |
|
|
|
1,755,891 |
|
|
|
20,284 |
|
4.58 |
|
Commercial AD&C loans |
|
|
995,682 |
|
|
|
20,503 |
|
8.17 |
|
|
|
1,115,531 |
|
|
|
15,501 |
|
5.51 |
|
Commercial business loans |
|
|
1,442,518 |
|
|
|
23,343 |
|
6.42 |
|
|
|
1,327,218 |
|
|
|
17,196 |
|
5.14 |
|
Total commercial loans |
|
|
9,333,376 |
|
|
|
125,193 |
|
5.32 |
|
|
|
9,097,323 |
|
|
|
104,444 |
|
4.55 |
|
Residential mortgage
loans |
|
|
1,406,929 |
|
|
|
12,550 |
|
3.57 |
|
|
|
1,177,664 |
|
|
|
9,980 |
|
3.39 |
|
Residential construction
loans |
|
|
174,204 |
|
|
|
1,680 |
|
3.83 |
|
|
|
235,123 |
|
|
|
1,845 |
|
3.11 |
|
Consumer loans |
|
|
421,189 |
|
|
|
8,491 |
|
8.00 |
|
|
|
422,963 |
|
|
|
5,531 |
|
5.19 |
|
Total residential and consumer loans |
|
|
2,002,322 |
|
|
|
22,721 |
|
4.52 |
|
|
|
1,835,750 |
|
|
|
17,356 |
|
3.77 |
|
Total loans (2) |
|
|
11,335,698 |
|
|
|
147,914 |
|
5.18 |
|
|
|
10,933,073 |
|
|
|
121,800 |
|
4.42 |
|
Loans held for sale |
|
|
13,714 |
|
|
|
238 |
|
6.93 |
|
|
|
15,211 |
|
|
|
161 |
|
4.24 |
|
Taxable securities |
|
|
1,239,564 |
|
|
|
6,682 |
|
2.16 |
|
|
|
1,251,599 |
|
|
|
5,735 |
|
1.83 |
|
Tax-advantaged securities |
|
|
349,778 |
|
|
|
2,269 |
|
2.59 |
|
|
|
482,437 |
|
|
|
2,900 |
|
2.40 |
|
Total investment securities (3) |
|
|
1,589,342 |
|
|
|
8,951 |
|
2.25 |
|
|
|
1,734,036 |
|
|
|
8,635 |
|
1.99 |
|
Interest-bearing deposits with
banks |
|
|
505,017 |
|
|
|
6,371 |
|
5.00 |
|
|
|
150,992 |
|
|
|
774 |
|
2.03 |
|
Federal funds sold |
|
|
346 |
|
|
|
5 |
|
5.38 |
|
|
|
446 |
|
|
|
3 |
|
2.30 |
|
Total interest-earning assets |
|
|
13,444,117 |
|
|
|
163,479 |
|
4.83 |
|
|
|
12,833,758 |
|
|
|
131,373 |
|
4.07 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: allowance for credit
losses - loans |
|
|
(122,348 |
) |
|
|
|
|
|
|
(114,512 |
) |
|
|
|
|
Cash and due from banks |
|
|
93,354 |
|
|
|
|
|
|
|
93,327 |
|
|
|
|
|
Premises and equipment,
net |
|
|
71,956 |
|
|
|
|
|
|
|
64,039 |
|
|
|
|
|
Other assets |
|
|
599,263 |
|
|
|
|
|
|
|
644,983 |
|
|
|
|
|
Total assets |
|
$ |
14,086,342 |
|
|
|
|
|
|
$ |
13,521,595 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand
deposits |
|
$ |
1,419,934 |
|
|
$ |
4,229 |
|
1.18 |
% |
|
$ |
1,444,801 |
|
|
$ |
941 |
|
0.26 |
% |
Regular savings deposits |
|
|
861,634 |
|
|
|
5,571 |
|
2.57 |
|
|
|
555,057 |
|
|
|
21 |
|
0.02 |
|
Money market savings
deposits |
|
|
2,866,744 |
|
|
|
25,122 |
|
3.48 |
|
|
|
3,202,507 |
|
|
|
5,281 |
|
0.65 |
|
Time deposits |
|
|
2,887,311 |
|
|
|
28,180 |
|
3.87 |
|
|
|
1,542,932 |
|
|
|
3,247 |
|
0.83 |
|
Total interest-bearing deposits |
|
|
8,035,623 |
|
|
|
63,102 |
|
3.12 |
|
|
|
6,745,297 |
|
|
|
9,490 |
|
0.56 |
|
Repurchase agreements |
|
|
67,298 |
|
|
|
356 |
|
2.10 |
|
|
|
104,742 |
|
|
|
30 |
|
0.11 |
|
Federal funds purchased and
Federal Reserve Bank borrowings |
|
|
300,435 |
|
|
|
3,726 |
|
4.92 |
|
|
|
158,211 |
|
|
|
947 |
|
2.37 |
|
Advances from FHLB |
|
|
558,696 |
|
|
|
6,200 |
|
4.40 |
|
|
|
514,022 |
|
|
|
3,049 |
|
2.35 |
|
Subordinated debt |
|
|
370,565 |
|
|
|
3,946 |
|
4.26 |
|
|
|
369,958 |
|
|
|
3,946 |
|
4.27 |
|
Total borrowings |
|
|
1,296,994 |
|
|
|
14,228 |
|
4.35 |
|
|
|
1,146,933 |
|
|
|
7,972 |
|
2.76 |
|
Total interest-bearing liabilities |
|
|
9,332,617 |
|
|
|
77,330 |
|
3.29 |
|
|
|
7,892,230 |
|
|
|
17,462 |
|
0.88 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand
deposits |
|
|
3,041,101 |
|
|
|
|
|
|
|
3,995,702 |
|
|
|
|
|
Other liabilities |
|
|
174,071 |
|
|
|
|
|
|
|
147,236 |
|
|
|
|
|
Stockholders' equity |
|
|
1,538,553 |
|
|
|
|
|
|
|
1,486,427 |
|
|
|
|
|
Total liabilities and stockholders' equity |
|
$ |
14,086,342 |
|
|
|
|
|
|
$ |
13,521,595 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax-equivalent net interest
income and spread |
|
|
|
$ |
86,149 |
|
1.54 |
% |
|
|
|
$ |
113,911 |
|
3.19 |
% |
Less: tax-equivalent adjustment |
|
|
|
|
1,068 |
|
|
|
|
|
|
951 |
|
|
Net interest income |
|
|
|
$ |
85,081 |
|
|
|
|
|
$ |
112,960 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income/earning
assets |
|
|
|
|
|
4.83 |
% |
|
|
|
|
|
4.07 |
% |
Interest expense/earning
assets |
|
|
|
|
|
2.28 |
|
|
|
|
|
|
0.54 |
|
Net interest margin |
|
|
|
|
|
2.55 |
% |
|
|
|
|
|
3.53 |
% |
|
(1) |
|
Tax-equivalent income has been adjusted using the combined marginal
federal and state rate of 25.37% and 25.47% for 2023 and 2022,
respectively. The annualized taxable-equivalent adjustments
utilized in the above table to compute yields aggregated to
$1.1 million and $1.0 million in 2023 and 2022,
respectively. |
|
(2) |
|
Non-accrual loans are included in the average balances. |
|
(3) |
|
Available-for-sale investments are presented at amortized
cost. |
|
|
|
|
|
Sandy
Spring Bancorp, Inc. and SubsidiariesCONSOLIDATED
AVERAGE BALANCES, YIELDS AND RATES - UNAUDITED |
|
|
|
Nine Months Ended September 30, |
|
|
2023 |
|
2022 |
(Dollars in thousands and
tax-equivalent) |
|
AverageBalances |
|
Interest (1) |
|
AnnualizedAverageYield/Rate |
|
AverageBalances |
|
Interest (1) |
|
AnnualizedAverageYield/Rate |
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial investor real estate loans |
|
$ |
5,136,059 |
|
|
$ |
177,067 |
|
4.61 |
% |
|
$ |
4,546,440 |
|
|
$ |
138,245 |
|
4.07 |
% |
Commercial owner-occupied real
estate loans |
|
|
1,770,812 |
|
|
|
61,038 |
|
4.61 |
|
|
|
1,722,522 |
|
|
|
58,126 |
|
4.51 |
|
Commercial AD&C loans |
|
|
1,044,907 |
|
|
|
61,005 |
|
7.81 |
|
|
|
1,104,901 |
|
|
|
37,821 |
|
4.58 |
|
Commercial business loans |
|
|
1,442,858 |
|
|
|
68,258 |
|
6.33 |
|
|
|
1,344,608 |
|
|
|
49,370 |
|
4.91 |
|
Total commercial loans |
|
|
9,394,636 |
|
|
|
367,368 |
|
5.23 |
|
|
|
8,718,471 |
|
|
|
283,562 |
|
4.35 |
|
Residential mortgage
loans |
|
|
1,356,530 |
|
|
|
35,925 |
|
3.53 |
|
|
|
1,071,634 |
|
|
|
26,632 |
|
3.31 |
|
Residential construction
loans |
|
|
202,856 |
|
|
|
5,302 |
|
3.49 |
|
|
|
217,978 |
|
|
|
5,112 |
|
3.14 |
|
Consumer loans |
|
|
422,861 |
|
|
|
24,403 |
|
7.72 |
|
|
|
422,941 |
|
|
|
13,112 |
|
4.14 |
|
Total residential and consumer loans |
|
|
1,982,247 |
|
|
|
65,630 |
|
4.42 |
|
|
|
1,712,553 |
|
|
|
44,856 |
|
3.50 |
|
Total loans (2) |
|
|
11,376,883 |
|
|
|
432,998 |
|
5.09 |
|
|
|
10,431,024 |
|
|
|
328,418 |
|
4.21 |
|
Loans held for sale |
|
|
13,192 |
|
|
|
697 |
|
7.04 |
|
|
|
15,174 |
|
|
|
504 |
|
4.43 |
|
Taxable securities |
|
|
1,275,407 |
|
|
|
20,538 |
|
2.15 |
|
|
|
1,204,240 |
|
|
|
14,472 |
|
1.60 |
|
Tax-advantaged securities |
|
|
360,348 |
|
|
|
6,727 |
|
2.49 |
|
|
|
475,463 |
|
|
|
8,533 |
|
2.39 |
|
Total investment securities (3) |
|
|
1,635,755 |
|
|
|
27,265 |
|
2.22 |
|
|
|
1,679,703 |
|
|
|
23,005 |
|
1.83 |
|
Interest-bearing deposits with
banks |
|
|
368,829 |
|
|
|
13,979 |
|
5.07 |
|
|
|
202,882 |
|
|
|
1,245 |
|
0.82 |
|
Federal funds sold |
|
|
433 |
|
|
|
13 |
|
4.00 |
|
|
|
581 |
|
|
|
4 |
|
0.91 |
|
Total interest-earning assets |
|
|
13,395,092 |
|
|
|
474,952 |
|
4.74 |
|
|
|
12,329,364 |
|
|
|
353,176 |
|
3.83 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: allowance for credit
losses - loans |
|
|
(125,558 |
) |
|
|
|
|
|
|
(112,384 |
) |
|
|
|
|
Cash and due from banks |
|
|
94,960 |
|
|
|
|
|
|
|
81,673 |
|
|
|
|
|
Premises and equipment,
net |
|
|
70,130 |
|
|
|
|
|
|
|
62,510 |
|
|
|
|
|
Other assets |
|
|
609,301 |
|
|
|
|
|
|
|
672,093 |
|
|
|
|
|
Total assets |
|
$ |
14,043,925 |
|
|
|
|
|
|
$ |
13,033,256 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand
deposits |
|
$ |
1,413,876 |
|
|
$ |
10,465 |
|
0.99 |
% |
|
$ |
1,477,956 |
|
|
$ |
1,513 |
|
0.14 |
% |
Regular savings deposits |
|
|
660,211 |
|
|
|
7,831 |
|
1.59 |
|
|
|
553,982 |
|
|
|
62 |
|
0.02 |
|
Money market savings
deposits |
|
|
3,067,810 |
|
|
|
68,976 |
|
3.01 |
|
|
|
3,334,534 |
|
|
|
7,403 |
|
0.30 |
|
Time deposits |
|
|
2,658,225 |
|
|
|
67,943 |
|
3.42 |
|
|
|
1,418,740 |
|
|
|
6,600 |
|
0.62 |
|
Total interest-bearing deposits |
|
|
7,800,122 |
|
|
|
155,215 |
|
2.66 |
|
|
|
6,785,212 |
|
|
|
15,578 |
|
0.31 |
|
Repurchase agreements |
|
|
62,126 |
|
|
|
561 |
|
1.21 |
|
|
|
119,554 |
|
|
|
104 |
|
0.12 |
|
Federal funds purchased and
Federal Reserve Bank borrowings |
|
|
264,580 |
|
|
|
9,816 |
|
4.96 |
|
|
|
85,983 |
|
|
|
1,128 |
|
1.75 |
|
Advances from FHLB |
|
|
637,015 |
|
|
|
21,623 |
|
4.54 |
|
|
|
174,493 |
|
|
|
3,066 |
|
2.35 |
|
Subordinated debt |
|
|
370,412 |
|
|
|
11,839 |
|
4.26 |
|
|
|
315,065 |
|
|
|
10,130 |
|
4.29 |
|
Total borrowings |
|
|
1,334,133 |
|
|
|
43,839 |
|
4.39 |
|
|
|
695,095 |
|
|
|
14,428 |
|
2.78 |
|
Total interest-bearing liabilities |
|
|
9,134,255 |
|
|
|
199,054 |
|
2.91 |
|
|
|
7,480,307 |
|
|
|
30,006 |
|
0.54 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand
deposits |
|
|
3,218,226 |
|
|
|
|
|
|
|
3,919,600 |
|
|
|
|
|
Other liabilities |
|
|
169,291 |
|
|
|
|
|
|
|
146,429 |
|
|
|
|
|
Stockholders' equity |
|
|
1,522,153 |
|
|
|
|
|
|
|
1,486,920 |
|
|
|
|
|
Total liabilities and stockholders' equity |
|
$ |
14,043,925 |
|
|
|
|
|
|
$ |
13,033,256 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax-equivalent net interest
income and spread |
|
|
|
$ |
275,898 |
|
1.83 |
% |
|
|
|
$ |
323,170 |
|
3.29 |
% |
Less: tax-equivalent adjustment |
|
|
|
|
3,044 |
|
|
|
|
|
|
2,809 |
|
|
Net interest income |
|
|
|
$ |
272,854 |
|
|
|
|
|
$ |
320,361 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income/earning
assets |
|
|
|
|
|
4.74 |
% |
|
|
|
|
|
3.83 |
% |
Interest expense/earning
assets |
|
|
|
|
|
1.99 |
|
|
|
|
|
|
0.33 |
|
Net interest margin |
|
|
|
|
|
2.75 |
% |
|
|
|
|
|
3.50 |
% |
|
(1) |
|
Tax-equivalent income has been adjusted using the combined marginal
federal and state rate of 25.37% and 25.47% for 2023 and 2022,
respectively. The annualized taxable-equivalent adjustments
utilized in the above table to compute yields aggregated to
$3.0 million and $2.8 million in 2023 and 2022,
respectively. |
|
(2) |
|
Non-accrual loans are included in the average balances. |
|
(3) |
|
Available-for-sale investments are presented at amortized
cost. |
Sandy Spring Bancorp (NASDAQ:SASR)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024
Sandy Spring Bancorp (NASDAQ:SASR)
Graphique Historique de l'Action
De Juin 2023 à Juin 2024