OLNEY, Md., Jan. 23, 2024 (GLOBE NEWSWIRE) --
Sandy Spring Bancorp, Inc. (Nasdaq-SASR), the parent company of
Sandy Spring Bank, reported net income of $26.1 million ($0.58 per
diluted common share) for the quarter ended December 31, 2023,
compared to net income of $20.7 million ($0.46 per diluted common
share) for the third quarter of 2023 and $34.0 million ($0.76 per
diluted common share) for the fourth quarter of 2022. The increase
in the current quarter's net income compared to the linked quarter
was a product of a lower provision for credit losses coupled with
lower non-interest expense, partially offset by lower net interest
income and non-interest income.
Current quarter's core earnings were $27.1
million ($0.60 per diluted common share), compared to $27.8 million
($0.62 per diluted common share) for the quarter ended
September 30, 2023 and $35.3 million ($0.79 per diluted common
share) for the quarter ended December 31, 2022. Core earnings
exclude the after-tax impact of amortization of intangibles,
investment securities gains or losses and other non-recurring or
extraordinary items. The current quarter’s core earnings were
positively affected by a lower provision for credit losses, which
was offset by lower revenues and an increase in non-interest
expense, after excluding the pension settlement expense from the
prior quarter.
“Over the past year, we successfully grew core
funding, improved liquidity and expanded our client base," said
Daniel J. Schrider, Chairman, President and CEO of Sandy Spring
Bank. "We also launched improved digital banking and online account
opening platforms that give our clients more control in how they
bank with us."
“While it was a challenging year given the rate
environment and economic uncertainty, we are focused on building on
this positive momentum in 2024 and continuing to stay close to our
clients,” Schrider added.
Fourth Quarter
Highlights
- Total assets at December 31,
2023 decreased by 1% to $14.0 billion compared to $14.1 billion at
September 30, 2023.
- Total loans increased by $66.7
million or 1% to $11.4 billion at December 31, 2023 compared
to $11.3 billion at September 30, 2023. During the current
quarter, the Company reduced its concentration in the investor
commercial real estate segment by $33.3 million, while AD&C and
commercial business loans and lines increased $50.3 million and
$50.2 million, respectively. The total mortgage loan portfolio
remained relatively unchanged during this period.
- Deposits decreased $154.5 million
or 1% to $11.0 billion at December 31, 2023 compared to $11.2
billion at September 30, 2023, as noninterest-bearing and
interest-bearing deposits declined $99.7 million and $54.7 million,
respectively. Decline within noninterest-bearing deposit categories
was driven by lower balances in small business and title company
commercial checking accounts. The decrease in interest-bearing
deposits was due to a $253.1 million reduction in brokered time
deposits, as the Company continued to reduce its reliance on
wholesale funding sources, in addition to the $111.9 million
decrease in money market accounts. These declines were partially
offset by the $265.9 million growth in savings accounts.
- The ratio of non-performing loans
to total loans was 0.81% at December 31, 2023 compared to
0.46% at September 30, 2023 and 0.35% at December 31,
2022. The current quarter's increase in non-performing loans was
related to two large investor commercial real estate relationships
within the custodial care and multifamily residential property
industries. Net charge-off activity during the current quarter was
insignificant.
- Total borrowings were unchanged
across all categories at December 31, 2023 compared to the
previous quarter.
- Net interest income for the fourth
quarter of 2023 declined $3.4 million or 4% compared to the
previous quarter and $24.9 million or 23% compared to the fourth
quarter of 2022. During the recent quarter, the $3.2 million growth
in interest income was more than offset by the $6.6 million
increase in interest expense, a result of the competitive rates
offered on deposits.
- The net interest margin was 2.45%
for the fourth quarter of 2023 compared to 2.55% for the third
quarter of 2023 and 3.26% for the fourth quarter of 2022. This
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 customers' movement of excess
funds out of noninterest-bearing into interest-bearing accounts,
which outpaced the increase in the yield on interest-earning
assets. Compared to the linked quarter, the rate paid on
interest-bearing liabilities rose 25 basis points, while the yield
on interest-earning assets increased 9 basis points, resulting in
the quarterly margin compression of 10 basis points.
- Provision for credit losses
directly attributable to the funded loan portfolio for the current
quarter was a credit of $2.6 million compared to a charge of $3.2
million in the previous quarter and $7.9 million in the prior year
quarter. The reduction in the provision during the current quarter
was attributable to a change in the composition of the loan
portfolio, a decline in the probability of an economic recession
and updates to other qualitative adjustments used within the
reserve calculation. These factors were partially offset by an
individual reserve established on an investor commercial real
estate loan designated as non-accrual during the current quarter
coupled with a slight deterioration in other relevant economic
factors in the most recent economic forecast. In addition, during
the current quarter the Company reduced its reserve for unfunded
commitments by $0.9 million, a result of higher utilization rates
on lines of credit.
- Non-interest income for the fourth
quarter of 2023 decreased by 5% or $0.8 million compared to the
linked quarter and grew by 16% or $2.3 million compared to the
prior year quarter. The quarter-over-quarter decrease was mainly
driven by lower income from mortgage banking activities, due to
lower sales volume, partially offset by greater BOLI income.
- Non-interest expense for the fourth
quarter of 2023 decreased $5.3 million or 7% compared to the third
quarter of 2023 and $2.8 million or 4% compared to the prior year
quarter. The previous quarter included an $8.2 million in pension
settlement expense related to the termination of the Company's
pension plan. Excluding this item from the previous quarter, total
non-interest expense increased by $2.8 million or 4% due to higher
professional and consulting fees, marketing expense and other
operating expenses.
- Return on average assets (“ROA”)
for the quarter ended December 31, 2023 was 0.73% and return
on average tangible common equity (“ROTCE”) was 9.26% compared to
0.58% and 7.42%, respectively, for the third quarter of 2023 and
0.98% and 12.91%, respectively, for the fourth quarter of 2022. On
a non-GAAP basis, the current quarter's core ROA was 0.76% and core
ROTCE was 9.26% compared to 0.78% and 9.51%, respectively, for the
previous quarter and 1.02% and 13.02%, respectively, for the fourth
quarter of 2022.
- The GAAP efficiency ratio was
68.33% for the fourth quarter of 2023, compared to 70.72% for the
third quarter of 2023 and 53.23% for the fourth quarter of 2022.
The non-GAAP efficiency ratio was 66.16% for the fourth quarter of
2023 compared to 60.91% for the third quarter of 2023 and 51.46%
for the prior year quarter. The increase in non-GAAP efficiency
ratio (reflecting a decrease in efficiency) in the current quarter
compared to the previous quarter and the fourth 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 $14.0 billion at
December 31, 2023, as compared to $14.1 billion at
September 30, 2023. At December 31, 2023 total loans
increased by $66.7 million or 1% to $11.4 billion compared to $11.3
billion at September 30, 2023. Commercial real estate and
business loans increased $62.0 million quarter-over-quarter due to
the $50.3 million and $50.2 million growth in the AD&C and
commercial business loan and lines portfolios, respectively,
partially offset by a $33.3 million decline in the investor
commercial real estate loan portfolio. Quarter-over-quarter the
total mortgage loan portfolio remained relatively unchanged.
Deposits decreased $154.5 million or 1% to $11.0
billion at December 31, 2023 compared to $11.2 billion at
September 30, 2023. During this period noninterest-bearing and
interest-bearing deposits declined $99.7 million and $54.7 million,
respectively. The decline within noninterest-bearing deposit
categories was primarily driven by $64.7 million and $54.4 million
decrease in small business and title company commercial checking
accounts, respectively. The decrease in interest-bearing deposits
was due to a $253.1 million reduction in brokered time deposits, as
the Company continued to reduce its reliance on wholesale funding
sources during the current quarter, in addition to the $111.9
million decrease in money market accounts. These declines were
partially offset by $265.9 million growth in savings accounts.
Total deposits, excluding brokered deposits, increased by $85.5
million or 1% quarter-over-quarter and represented 92% of the total
deposits as of December 31, 2023 compared to 90% at
September 30, 2023, reflecting continued stability of the core
deposit base. Due to the deposit decline experienced during the
current quarter the loan to deposit ratio increased to 103% at
December 31, 2023 from 101% at September 30, 2023. Total
uninsured deposits at December 31, 2023 were approximately 34%
of the total deposits.
At December 31, 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 $6.0 billion or 162% of uninsured
deposits.
The tangible common equity ratio increased to
8.77% of tangible assets at December 31, 2023, compared to
8.42% at September 30, 2023. This increase reflected the
impact of higher tangible common equity, a product of $10.8 million
increase in net retained earnings and a $38.2 million decrease in
unrealized losses on available-for-sale investment securities
during the current quarter, while tangible assets decreased by
$119.2 million.
At December 31, 2023, the Company had a
total risk-based capital ratio of 14.92%, a common equity tier 1
risk-based capital ratio of 10.90%, a tier 1 risk-based capital
ratio of 10.90%, and a tier 1 leverage ratio of 9.51%. 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. At December 31,
2023, non-performing loans totaled $91.8 million, compared to
$51.8 million at September 30, 2023 and
$39.4 million at December 31, 2022. Non-performing loans
to total loans was 0.81% compared to 0.46%. These levels of
non-performing loans compare to 0.35% at December 31, 2022.
The current quarter's increase in non-performing loans was related
to two large investor commercial real estate relationships within
the custodial care and multifamily residential property industries.
These two relationships accounted for $42.4 million of the total
$47.9 million of loans placed on non-accrual during the quarter.
Only the custodial care relationship required an individual reserve
during the current quarter. An individual reserve was recorded
earlier in the year on the multifamily residential property
relationship. Total net recoveries for the current quarter amounted
to $0.1 million compared to net charge-offs of $0.1 million for the
third quarter of 2023 and $0.1 million of net recoveries for the
fourth quarter of 2022.
At December 31, 2023, the allowance for
credit losses was $120.9 million or 1.06% of outstanding loans
and 132% of non-performing loans, compared to $123.4 million
or 1.09% of outstanding loans and 238% of non-performing loans at
the end of the previous quarter and $136.2 million or 1.20% of
outstanding loans and 346% of non-performing loans at the end of
the fourth quarter of 2022. The decrease in the allowance for the
current quarter compared to the previous quarter mainly reflects a
change in the composition of the loan portfolio, a decline in the
probability of an economic recession and updates to other
qualitative adjustments, partially offset by an individual reserve
established on the previously discussed investor commercial real
estate loan designated as non-accrual during the current quarter
coupled with a slight deterioration in other relevant economic
factors in the most recent economic forecast.
Income Statement Review
Quarterly Results
Net income was $26.1 million ($0.58 per diluted
common share) for the three months ended December 31, 2023
compared to $20.7 million ($0.46 per diluted common share) for the
three months ended September 30, 2023 and $34.0 million ($0.76
per diluted common share) for the prior year quarter. The current
quarter's core earnings were $27.1 million ($0.60 per diluted
common share), compared to $27.8 million ($0.62 per diluted common
share) for the previous quarter and $35.3 million ($0.79 per
diluted common share) for the quarter ended December 31, 2022.
The increase in the current quarter's net income compared to the
previous quarter, which included a one-time pension settlement
expense of $8.2 million, was a result of lower provision for credit
losses partially offset by declines in both net interest income and
non-interest income.
Net interest income for the fourth quarter of
2023 decreased $3.4 million or 4% compared to the previous quarter
and $24.9 million or 23% compared to the fourth 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 $20.3
million year-over-year increase in interest income. This growth in
interest income was more than offset by the $45.3 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, and consumer loans.
The net interest margin was 2.45% for the fourth
quarter of 2023 compared to 2.55% for the third quarter of 2023 and
3.26% for the fourth 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, 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 49 basis points while the rate paid on
interest-bearing liabilities rose 169 basis points, resulting in
net interest margin compression of 81 basis points.
The total provision for credit losses was a
credit of $3.4 million for the fourth quarter of 2023 compared to a
charge of $2.4 million for the previous quarter and $10.8 million
for the fourth quarter of 2022. The provision for credit losses
directly attributable to the funded loan portfolio was a credit of
$2.6 million for the current quarter compared to a charge of $3.2
million for the third quarter of 2023 and the prior year quarter’s
provision of $7.9 million. The current quarter's provision is
mainly a reflection of change in the composition of the loan
portfolio, a decline in the probability of an economic recession
and updates to other qualitative adjustments, partially offset by
an increase in individual reserves driven by one large investor
commercial real estate relationship along with a slight
deterioration in other relevant economic factors.
Non-interest income for the fourth quarter of
2023 decreased by 5% or $0.8 million compared to the linked quarter
and grew by 16% or $2.3 million compared to the prior year quarter.
The current quarter's decrease in non-interest income as compared
to the previous quarter was mainly driven by lower income from
mortgage banking activities, due to lower sales volume, partially
offset by an increase in BOLI income.
Non-interest expense for the fourth quarter of
2023 decreased $5.3 million or 7% compared to the third quarter of
2023 and increased $2.8 million or 4% compared to the fourth
quarter of 2022. The previous quarter included $8.2 million of
pension settlement expense related to the termination of the
Company's pension plan. Excluding this item from the previous
quarter, total non-interest expense increased by $2.8 million or 4%
driven by a cumulative effect of higher professional and consulting
fees, marketing expense and other operating expenses, partially
offset by lower salaries and employee benefits.
For the fourth quarter of 2023, the GAAP
efficiency ratio was 68.33% compared to 70.72% for the third
quarter of 2023 and 53.23% for the fourth quarter of 2022. The GAAP
efficiency ratio rose from the prior year quarter primarily as a
result of the 19% decrease in GAAP revenue in combination with the
4% increase in GAAP non-interest expense. The non-GAAP efficiency
ratio was 66.16% for the current quarter as compared to 60.91% for
the third quarter of 2023 and 51.46% for the fourth quarter of
2022. The increase in the non-GAAP efficiency ratio (reflecting a
decrease in efficiency) from the fourth quarter of the prior year
to the current year quarter was primarily the result of the 19%
decline in non-GAAP revenue, while non-GAAP expenses increased
4%.
ROA for the quarter ended December 31, 2023
was 0.73% and ROTCE was 9.26% compared to 0.58% and 7.42%,
respectively, for the third quarter of 2023 and 0.98% and 12.91%,
respectively, for the fourth quarter of 2022. On a non-GAAP basis,
the current quarter's core ROA was 0.76% and core ROTCE was 9.26%
compared to 0.78% and 9.51% for the third quarter of 2023 and 1.02%
and 13.02%, respectively, for the fourth quarter of 2022.
Year-to-Date Results
The Company recorded net income of $122.8
million for the year ended December 31, 2023 compared to net
income of $166.3 million for the same period in the prior year.
Core earnings were $134.3 million for the year ended
December 31, 2023 compared to $160.3 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 the
decrease in net interest income and higher non-interest expense,
partially offset by lower provision for credit losses.
For the year ended December 31, 2023, net
interest income decreased $72.5 million compared to the prior year
as a result of the $214.3 million increase in interest expense,
partially offset by the $141.9 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 2.67% for the
year ended December 31, 2023, compared to 3.44% for the prior
year, primarily as a result of higher funding costs due to the
rising interest rate environment and market competition for
deposits during the period.
The provision for credit losses for the year
ended December 31, 2023 amounted to a credit of $17.6 million
as compared to a charge of $34.4 million for 2022. The credit to
the provision for the year ended December 31, 2023 was a
reflection of the improving regional forecasted unemployment rate,
observed during the first half of the current year, and the
declining probability of economic recession, partially offset by
higher individual reserves on our non-accrual loans during the
year.
For the year ended December 31, 2023,
non-interest income decreased 23% to $67.1 million compared to
$87.0 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 5% or $3.4
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 $1.1 million increase in BOLI
mortality-related income and the $0.9 million increase in wealth
management income.
Non-interest expense increased 7% to $275.1
million for the year ended December 31, 2023, compared to
$257.3 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 $10.0 million or 4% in the current year over the prior year. The
drivers of the increase in non-interest expense were a $8.8 million
increase in professional fees, a $4.7 million increase in FDIC
expense, and a $1.7 million increase in software amortization
expense. Excluding the pension settlement expense, total salaries
and benefits expense declined by $6.5 million from the prior year
period, predominantly due to a reduction in performance-based
compensation. 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 an increase in
the assessment rate for all banks that became effective in
2023.
For the year ended December 31, 2023, the
GAAP efficiency ratio was 65.24% compared to 50.05% for the same
period in 2022. The non-GAAP efficiency ratio for the current year
was 60.99% compared to the 49.66% for the prior year. The growth in
the current year’s GAAP and non-GAAP efficiency ratios compared to
the prior year, indicating a decline in efficiency, was the result
of the declines in GAAP and non-GAAP revenues combined with the
growth in GAAP and non-GAAP non-interest expenses.
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 fourth 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: 125369. 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 February 6, 2024. A replay of the teleconference
will be available through the same time period by calling
1-866-813-9403 under conference call number 801362.
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: Webcast
Source: 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 Officer
Sandy Spring Bancorp
17801 Georgia Avenue
Olney, Maryland 20832
1-800-399-5919
Email: DSchrider@sandyspringbank.com
PMantua@sandyspringbank.com
Website: www.sandyspringbank.com
Media Contact:
Jen Schell, Senior Vice President
301-570-8331
jschell@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 September 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 Ended
December 31, |
|
%
Change
|
|
Year Ended
December 31, |
|
%
Change
|
(Dollars in thousands, except per share data) |
|
2023 |
|
2022 |
|
|
2023 |
|
2022 |
|
Results of operations: |
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
$ |
81,696 |
|
|
$ |
106,643 |
|
|
(23 |
)% |
|
$ |
354,550 |
|
|
$ |
427,004 |
|
|
(17 |
)% |
Provision/ (credit) for credit losses |
|
|
(3,445 |
) |
|
|
10,801 |
|
|
N/M |
|
|
|
(17,561 |
) |
|
|
34,372 |
|
|
N/M |
|
Non-interest income |
|
|
16,560 |
|
|
|
14,297 |
|
|
16 |
|
|
|
67,078 |
|
|
|
87,019 |
|
|
(23 |
) |
Non-interest expense |
|
|
67,142 |
|
|
|
64,375 |
|
|
4 |
|
|
|
275,054 |
|
|
|
257,293 |
|
|
7 |
|
Income before income tax expense |
|
|
34,559 |
|
|
|
45,764 |
|
|
(24 |
) |
|
|
164,135 |
|
|
|
222,358 |
|
|
(26 |
) |
Net income |
|
|
26,100 |
|
|
|
33,980 |
|
|
(23 |
) |
|
|
122,844 |
|
|
|
166,299 |
|
|
(26 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to common shareholders |
|
$ |
26,066 |
|
|
$ |
33,866 |
|
|
(23 |
) |
|
$ |
122,621 |
|
|
$ |
165,618 |
|
|
(26 |
) |
Pre-tax pre-provision net income(1) |
|
$ |
31,114 |
|
|
$ |
56,565 |
|
|
(45 |
) |
|
$ |
146,574 |
|
|
$ |
256,730 |
|
|
(43 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
|
0.73 |
% |
|
|
0.98 |
% |
|
|
|
|
0.87 |
% |
|
|
1.26 |
% |
|
|
Return on average common equity |
|
|
6.70 |
% |
|
|
9.23 |
% |
|
|
|
|
8.04 |
% |
|
|
11.23 |
% |
|
|
Return on average tangible common equity(1) |
|
|
9.26 |
% |
|
|
12.91 |
% |
|
|
|
|
11.06 |
% |
|
|
15.64 |
% |
|
|
Net interest margin |
|
|
2.45 |
% |
|
|
3.26 |
% |
|
|
|
|
2.67 |
% |
|
|
3.44 |
% |
|
|
Efficiency ratio - GAAP basis(2) |
|
|
68.33 |
% |
|
|
53.23 |
% |
|
|
|
|
65.24 |
% |
|
|
50.05 |
% |
|
|
Efficiency ratio - Non-GAAP basis(2) |
|
|
66.16 |
% |
|
|
51.46 |
% |
|
|
|
|
60.99 |
% |
|
|
49.66 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share
data: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income per common share |
|
$ |
0.58 |
|
|
$ |
0.76 |
|
|
(24 |
)% |
|
$ |
2.74 |
|
|
$ |
3.69 |
|
|
(26 |
)% |
Diluted net income per common share |
|
$ |
0.58 |
|
|
$ |
0.76 |
|
|
(23 |
) |
|
$ |
2.73 |
|
|
$ |
3.68 |
|
|
(26 |
) |
Weighted average diluted common shares |
|
|
45,009,574 |
|
|
|
44,828,827 |
|
|
— |
|
|
|
44,947,263 |
|
|
|
45,039,022 |
|
|
— |
|
Dividends declared per share |
|
$ |
0.34 |
|
|
$ |
0.34 |
|
|
— |
|
|
$ |
1.36 |
|
|
$ |
1.36 |
|
|
— |
|
Book value per common share |
|
$ |
35.36 |
|
|
$ |
33.23 |
|
|
6 |
|
|
$ |
35.36 |
|
|
$ |
33.23 |
|
|
6 |
|
Tangible book value per common share(1) |
|
$ |
26.64 |
|
|
$ |
24.64 |
|
|
8 |
|
|
$ |
26.64 |
|
|
$ |
24.64 |
|
|
8 |
|
Outstanding common shares |
|
|
44,913,561 |
|
|
|
44,657,054 |
|
|
1 |
|
|
|
44,913,561 |
|
|
|
44,657,054 |
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial condition at
period-end: |
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities |
|
$ |
1,414,453 |
|
|
$ |
1,543,208 |
|
|
(8 |
)% |
|
$ |
1,414,453 |
|
|
$ |
1,543,208 |
|
|
(8 |
)% |
Loans |
|
|
11,366,989 |
|
|
|
11,396,706 |
|
|
— |
|
|
|
11,366,989 |
|
|
|
11,396,706 |
|
|
— |
|
Assets |
|
|
14,028,172 |
|
|
|
13,833,119 |
|
|
1 |
|
|
|
14,028,172 |
|
|
|
13,833,119 |
|
|
1 |
|
Deposits |
|
|
10,996,538 |
|
|
|
10,953,421 |
|
|
— |
|
|
|
10,996,538 |
|
|
|
10,953,421 |
|
|
— |
|
Stockholders' equity |
|
|
1,588,142 |
|
|
|
1,483,768 |
|
|
7 |
|
|
|
1,588,142 |
|
|
|
1,483,768 |
|
|
7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 leverage(3) |
|
|
9.51 |
% |
|
|
9.33 |
% |
|
|
|
|
9.51 |
% |
|
|
9.33 |
% |
|
|
Common equity tier 1 capital to risk-weighted
assets(3) |
|
|
10.90 |
% |
|
|
10.23 |
% |
|
|
|
|
10.90 |
% |
|
|
10.23 |
% |
|
|
Tier 1 capital to risk-weighted assets(3) |
|
|
10.90 |
% |
|
|
10.23 |
% |
|
|
|
|
10.90 |
% |
|
|
10.23 |
% |
|
|
Total regulatory capital to risk-weighted assets(3) |
|
|
14.92 |
% |
|
|
14.20 |
% |
|
|
|
|
14.92 |
% |
|
|
14.20 |
% |
|
|
Tangible common equity to tangible assets(4) |
|
|
8.77 |
% |
|
|
8.18 |
% |
|
|
|
|
8.77 |
% |
|
|
8.18 |
% |
|
|
Average equity to average assets |
|
|
10.97 |
% |
|
|
10.61 |
% |
|
|
|
|
10.87 |
% |
|
|
11.20 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit quality
ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses to loans |
|
|
1.06 |
% |
|
|
1.20 |
% |
|
|
|
|
1.06 |
% |
|
|
1.20 |
% |
|
|
Non-performing loans to total loans |
|
|
0.81 |
% |
|
|
0.35 |
% |
|
|
|
|
0.81 |
% |
|
|
0.35 |
% |
|
|
Non-performing assets to total assets |
|
|
0.65 |
% |
|
|
0.29 |
% |
|
|
|
|
0.65 |
% |
|
|
0.29 |
% |
|
|
Allowance for credit losses to non-performing loans |
|
|
131.59 |
% |
|
|
346.15 |
% |
|
|
|
|
131.59 |
% |
|
|
346.15 |
% |
|
|
Annualized net charge-offs/ (recoveries) to average
loans(5) |
|
|
— |
% |
|
|
— |
% |
|
|
|
|
0.01 |
% |
|
|
— |
% |
|
|
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 December 31, 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 Ended
December 31, |
|
Year Ended
December 31, |
(Dollars in thousands) |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Core earnings (non-GAAP): |
|
|
|
|
|
|
|
|
Net income (GAAP) |
|
$ |
26,100 |
|
|
$ |
33,980 |
|
|
$ |
122,844 |
|
|
$ |
166,299 |
|
Plus/ (less) non-GAAP adjustments
(net of tax)(1): |
|
|
|
|
|
|
|
|
Merger, acquisition and disposal expense |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
796 |
|
Amortization of intangible assets |
|
|
1,047 |
|
|
|
1,049 |
|
|
|
3,898 |
|
|
|
4,333 |
|
Severance expense |
|
|
— |
|
|
|
— |
|
|
|
1,445 |
|
|
|
— |
|
Pension settlement expense |
|
|
— |
|
|
|
— |
|
|
|
6,088 |
|
|
|
— |
|
Gain on disposal of assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(12,309 |
) |
Investment securities losses |
|
|
— |
|
|
|
293 |
|
|
|
— |
|
|
|
257 |
|
Contingent payment expense |
|
|
— |
|
|
|
— |
|
|
|
27 |
|
|
|
929 |
|
Core earnings (Non-GAAP) |
|
$ |
27,147 |
|
|
$ |
35,322 |
|
|
$ |
134,302 |
|
|
$ |
160,305 |
|
|
|
|
|
|
|
|
|
|
Core earnings per diluted
common share (non-GAAP): |
|
|
|
|
|
|
|
|
Weighted average common shares
outstanding - diluted (GAAP) |
|
|
45,009,574 |
|
|
|
44,828,827 |
|
|
|
44,947,263 |
|
|
|
45,039,022 |
|
|
|
|
|
|
|
|
|
|
Earnings per diluted common share
(GAAP) |
|
$ |
0.58 |
|
|
$ |
0.76 |
|
|
$ |
2.73 |
|
|
$ |
3.68 |
|
Core earnings per diluted common
share (non-GAAP) |
|
$ |
0.60 |
|
|
$ |
0.79 |
|
|
$ |
2.99 |
|
|
$ |
3.56 |
|
|
|
|
|
|
|
|
|
|
Core return on average
assets (non-GAAP): |
|
|
|
|
|
|
|
|
Average assets (GAAP) |
|
$ |
14,090,423 |
|
|
$ |
13,769,472 |
|
|
$ |
14,055,645 |
|
|
$ |
13,218,824 |
|
|
|
|
|
|
|
|
|
|
Return on average assets
(GAAP) |
|
|
0.73 |
% |
|
|
0.98 |
% |
|
|
0.87 |
% |
|
|
1.26 |
% |
Core return on average assets
(non-GAAP) |
|
|
0.76 |
% |
|
|
1.02 |
% |
|
|
0.96 |
% |
|
|
1.21 |
% |
|
|
|
|
|
|
|
|
|
Return/ Core return on
average tangible common equity (non-GAAP): |
|
|
|
|
|
|
|
|
Net Income (GAAP) |
|
$ |
26,100 |
|
|
$ |
33,980 |
|
|
$ |
122,844 |
|
|
$ |
166,299 |
|
Plus: Amortization of intangible
assets (net of tax) |
|
|
1,047 |
|
|
|
1,049 |
|
|
|
3,898 |
|
|
|
4,333 |
|
Net income before amortization of
intangible assets |
|
$ |
27,147 |
|
|
$ |
35,029 |
|
|
$ |
126,742 |
|
|
$ |
170,632 |
|
|
|
|
|
|
|
|
|
|
Average total stockholders'
equity (GAAP) |
|
$ |
1,546,312 |
|
|
$ |
1,460,254 |
|
|
$ |
1,528,242 |
|
|
$ |
1,480,198 |
|
Average goodwill |
|
|
(363,436 |
) |
|
|
(363,436 |
) |
|
|
(363,436 |
) |
|
|
(366,244 |
) |
Average other intangible assets, net |
|
|
(20,162 |
) |
|
|
(20,739 |
) |
|
|
(18,596 |
) |
|
|
(23,009 |
) |
Average tangible common equity
(non-GAAP) |
|
$ |
1,162,714 |
|
|
$ |
1,076,079 |
|
|
$ |
1,146,210 |
|
|
$ |
1,090,945 |
|
|
|
|
|
|
|
|
|
|
Return on average tangible common
equity (non-GAAP) |
|
|
9.26 |
% |
|
|
12.91 |
% |
|
|
11.06 |
% |
|
|
15.64 |
% |
Core return on average tangible
common equity (non-GAAP) |
|
|
9.26 |
% |
|
|
13.02 |
% |
|
|
11.72 |
% |
|
|
14.69 |
% |
(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 Ended
December 31, |
|
Year Ended
December 31, |
(Dollars in thousands) |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Pre-tax pre-provision net income: |
|
|
|
|
|
|
|
|
Net income (GAAP) |
|
$ |
26,100 |
|
|
$ |
33,980 |
|
|
$ |
122,844 |
|
|
$ |
166,299 |
|
Plus/ (less) non-GAAP adjustments: |
|
|
|
|
|
|
|
|
Income tax expense |
|
|
8,459 |
|
|
|
11,784 |
|
|
|
41,291 |
|
|
|
56,059 |
|
Provision/ (credit) for credit losses |
|
|
(3,445 |
) |
|
|
10,801 |
|
|
|
(17,561 |
) |
|
|
34,372 |
|
Pre-tax pre-provision net income
(non-GAAP) |
|
$ |
31,114 |
|
|
$ |
56,565 |
|
|
$ |
146,574 |
|
|
$ |
256,730 |
|
|
|
|
|
|
|
|
|
|
Efficiency ratio
(GAAP): |
|
|
|
|
|
|
|
|
Non-interest expense |
|
$ |
67,142 |
|
|
$ |
64,375 |
|
|
$ |
275,054 |
|
|
$ |
257,293 |
|
|
|
|
|
|
|
|
|
|
Net interest income plus
non-interest income |
|
$ |
98,256 |
|
|
$ |
120,940 |
|
|
$ |
421,628 |
|
|
$ |
514,023 |
|
|
|
|
|
|
|
|
|
|
Efficiency ratio
(GAAP) |
|
|
68.33 |
% |
|
|
53.23 |
% |
|
|
65.24 |
% |
|
|
50.05 |
% |
|
|
|
|
|
|
|
|
|
Efficiency ratio
(Non-GAAP): |
|
|
|
|
|
|
|
|
Non-interest expense |
|
$ |
67,142 |
|
|
$ |
64,375 |
|
|
$ |
275,054 |
|
|
$ |
257,293 |
|
Less non-GAAP adjustments: |
|
|
|
|
|
|
|
|
Amortization of intangible assets |
|
|
1,403 |
|
|
|
1,408 |
|
|
|
5,223 |
|
|
|
5,814 |
|
Merger, acquisition and disposal expense |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,068 |
|
Severance expense |
|
|
— |
|
|
|
— |
|
|
|
1,939 |
|
|
|
— |
|
Pension settlement expense |
|
|
— |
|
|
|
— |
|
|
|
8,157 |
|
|
|
— |
|
Contingent payment expense |
|
|
— |
|
|
|
— |
|
|
|
36 |
|
|
|
1,247 |
|
Non-interest expense - as
adjusted |
|
$ |
65,739 |
|
|
$ |
62,967 |
|
|
$ |
259,699 |
|
|
$ |
249,164 |
|
|
|
|
|
|
|
|
|
|
Net interest income plus
non-interest income |
|
$ |
98,256 |
|
|
$ |
120,940 |
|
|
$ |
421,628 |
|
|
$ |
514,023 |
|
Plus non-GAAP adjustment: |
|
|
|
|
|
|
|
|
Tax-equivalent income |
|
|
1,113 |
|
|
|
1,032 |
|
|
|
4,157 |
|
|
|
3,841 |
|
Less/ (plus) non-GAAP adjustment: |
|
|
|
|
|
|
|
|
Investment securities gains/ (losses) |
|
|
— |
|
|
|
(393 |
) |
|
|
— |
|
|
|
(345 |
) |
Gain on disposal of assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
16,516 |
|
Net interest income plus
non-interest income - as adjusted |
|
$ |
99,369 |
|
|
$ |
122,365 |
|
|
$ |
425,785 |
|
|
$ |
501,693 |
|
|
|
|
|
|
|
|
|
|
Efficiency ratio
(Non-GAAP) |
|
|
66.16 |
% |
|
|
51.46 |
% |
|
|
60.99 |
% |
|
|
49.66 |
% |
|
|
|
|
|
|
|
|
|
Tangible common equity
ratio: |
|
|
|
|
|
|
|
|
Total stockholders' equity |
|
$ |
1,588,142 |
|
|
$ |
1,483,768 |
|
|
$ |
1,588,142 |
|
|
$ |
1,483,768 |
|
Goodwill |
|
|
(363,436 |
) |
|
|
(363,436 |
) |
|
|
(363,436 |
) |
|
|
(363,436 |
) |
Other intangible assets, net |
|
|
(28,301 |
) |
|
|
(19,855 |
) |
|
|
(28,301 |
) |
|
|
(19,855 |
) |
Tangible common equity |
|
$ |
1,196,405 |
|
|
$ |
1,100,477 |
|
|
$ |
1,196,405 |
|
|
$ |
1,100,477 |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
14,028,172 |
|
|
$ |
13,833,119 |
|
|
$ |
14,028,172 |
|
|
$ |
13,833,119 |
|
Goodwill |
|
|
(363,436 |
) |
|
|
(363,436 |
) |
|
|
(363,436 |
) |
|
|
(363,436 |
) |
Other intangible assets, net |
|
|
(28,301 |
) |
|
|
(19,855 |
) |
|
|
(28,301 |
) |
|
|
(19,855 |
) |
Tangible assets |
|
$ |
13,636,435 |
|
|
$ |
13,449,828 |
|
|
$ |
13,636,435 |
|
|
$ |
13,449,828 |
|
|
|
|
|
|
|
|
|
|
Tangible common equity
ratio |
|
|
8.77 |
% |
|
|
8.18 |
% |
|
|
8.77 |
% |
|
|
8.18 |
% |
|
|
|
|
|
|
|
|
|
Outstanding common shares |
|
|
44,913,561 |
|
|
|
44,657,054 |
|
|
|
44,913,561 |
|
|
|
44,657,054 |
|
Tangible book value per common
share |
|
$ |
26.64 |
|
|
$ |
24.64 |
|
|
$ |
26.64 |
|
|
$ |
24.64 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sandy Spring Bancorp, Inc. and
Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF CONDITION -
UNAUDITED |
|
|
|
|
|
(Dollars in thousands) |
|
December 31,
2023 |
|
December 31,
2022 |
Assets |
|
|
|
|
Cash and due from banks |
|
$ |
82,257 |
|
|
$ |
88,152 |
|
Federal funds sold |
|
|
245 |
|
|
|
193 |
|
Interest-bearing deposits with banks |
|
|
463,396 |
|
|
|
103,887 |
|
Cash and cash equivalents |
|
|
545,898 |
|
|
|
192,232 |
|
Residential mortgage loans held for sale (at fair value) |
|
|
10,836 |
|
|
|
11,706 |
|
Investments held-to-maturity (fair values of $200,411 and $220,123
at December 31, 2023 and December 31, 2022,
respectively) |
|
|
236,165 |
|
|
|
259,452 |
|
Investments available-for-sale (at fair value) |
|
|
1,102,681 |
|
|
|
1,214,538 |
|
Other investments, at cost |
|
|
75,607 |
|
|
|
69,218 |
|
Total loans |
|
|
11,366,989 |
|
|
|
11,396,706 |
|
Less: allowance for credit losses - loans |
|
|
(120,865 |
) |
|
|
(136,242 |
) |
Net loans |
|
|
11,246,124 |
|
|
|
11,260,464 |
|
Premises and equipment, net |
|
|
59,490 |
|
|
|
67,070 |
|
Other real estate owned |
|
|
— |
|
|
|
645 |
|
Accrued interest receivable |
|
|
46,583 |
|
|
|
41,172 |
|
Goodwill |
|
|
363,436 |
|
|
|
363,436 |
|
Other intangible assets, net |
|
|
28,301 |
|
|
|
19,855 |
|
Other assets |
|
|
313,051 |
|
|
|
333,331 |
|
Total
assets |
|
$ |
14,028,172 |
|
|
$ |
13,833,119 |
|
|
|
|
|
|
Liabilities |
|
|
|
|
Noninterest-bearing deposits |
|
$ |
2,914,161 |
|
|
$ |
3,673,300 |
|
Interest-bearing deposits |
|
|
8,082,377 |
|
|
|
7,280,121 |
|
Total deposits |
|
|
10,996,538 |
|
|
|
10,953,421 |
|
Securities sold under retail repurchase agreements |
|
|
75,032 |
|
|
|
61,967 |
|
Federal funds purchased |
|
|
— |
|
|
|
260,000 |
|
Federal Reserve Bank borrowings |
|
|
300,000 |
|
|
|
— |
|
Advances from FHLB |
|
|
550,000 |
|
|
|
550,000 |
|
Subordinated debt |
|
|
370,803 |
|
|
|
370,205 |
|
Total borrowings |
|
|
1,295,835 |
|
|
|
1,242,172 |
|
Accrued interest payable and other liabilities |
|
|
147,657 |
|
|
|
153,758 |
|
Total liabilities |
|
|
12,440,030 |
|
|
|
12,349,351 |
|
|
|
|
|
|
Stockholders'
equity |
|
|
|
|
Common stock -- par value $1.00; shares authorized 100,000,000;
shares issued and outstanding 44,913,561 and 44,657,054 at
December 31, 2023 and December 31, 2022,
respectively |
|
|
44,914 |
|
|
|
44,657 |
|
Additional paid in capital |
|
|
742,243 |
|
|
|
734,273 |
|
Retained earnings |
|
|
898,316 |
|
|
|
836,789 |
|
Accumulated other comprehensive loss |
|
|
(97,331 |
) |
|
|
(131,951 |
) |
Total stockholders' equity |
|
|
1,588,142 |
|
|
|
1,483,768 |
|
Total liabilities and
stockholders' equity |
|
$ |
14,028,172 |
|
|
$ |
13,833,119 |
|
|
|
|
|
|
|
|
|
|
|
Sandy
Spring Bancorp, Inc. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF INCOME -
UNAUDITED |
|
|
|
|
|
|
|
Three Months Ended
December 31, |
|
Year Ended
December 31, |
(Dollars in thousands, except per share data) |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Interest income: |
|
|
|
|
|
|
|
|
Interest and fees on loans |
|
$ |
148,655 |
|
|
$ |
135,079 |
|
|
$ |
579,960 |
|
|
$ |
462,121 |
|
Interest on loans held for sale |
|
|
199 |
|
|
|
234 |
|
|
|
896 |
|
|
|
738 |
|
Interest on deposits with banks |
|
|
8,456 |
|
|
|
1,427 |
|
|
|
22,435 |
|
|
|
2,672 |
|
Interest and dividend income on investment securities: |
|
|
|
|
|
|
|
|
Taxable |
|
|
6,454 |
|
|
|
6,047 |
|
|
|
26,992 |
|
|
|
20,519 |
|
Tax-advantaged |
|
|
1,848 |
|
|
|
2,509 |
|
|
|
7,224 |
|
|
|
9,609 |
|
Interest on federal funds sold |
|
|
4 |
|
|
|
4 |
|
|
|
17 |
|
|
|
8 |
|
Total interest income |
|
|
165,616 |
|
|
|
145,300 |
|
|
|
637,524 |
|
|
|
495,667 |
|
Interest
expense: |
|
|
|
|
|
|
|
|
Interest on deposits |
|
|
69,813 |
|
|
|
28,276 |
|
|
|
225,028 |
|
|
|
43,854 |
|
Interest on retail repurchase agreements and federal funds
purchased |
|
|
4,075 |
|
|
|
1,697 |
|
|
|
14,452 |
|
|
|
2,929 |
|
Interest on advances from FHLB |
|
|
6,086 |
|
|
|
4,759 |
|
|
|
27,709 |
|
|
|
7,825 |
|
Interest on subordinated debt |
|
|
3,946 |
|
|
|
3,925 |
|
|
|
15,785 |
|
|
|
14,055 |
|
Total interest expense |
|
|
83,920 |
|
|
|
38,657 |
|
|
|
282,974 |
|
|
|
68,663 |
|
Net interest
income |
|
|
81,696 |
|
|
|
106,643 |
|
|
|
354,550 |
|
|
|
427,004 |
|
Provision/ (credit) for credit
losses |
|
|
(3,445 |
) |
|
|
10,801 |
|
|
|
(17,561 |
) |
|
|
34,372 |
|
Net interest income after provision/ (credit) for credit
losses |
|
|
85,141 |
|
|
|
95,842 |
|
|
|
372,111 |
|
|
|
392,632 |
|
Non-interest
income: |
|
|
|
|
|
|
|
|
Investment securities gains/ (losses) |
|
|
— |
|
|
|
(393 |
) |
|
|
— |
|
|
|
(345 |
) |
Gain on disposal of assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
16,516 |
|
Service charges on deposit accounts |
|
|
2,749 |
|
|
|
2,419 |
|
|
|
10,447 |
|
|
|
9,803 |
|
Mortgage banking activities |
|
|
792 |
|
|
|
783 |
|
|
|
5,536 |
|
|
|
6,130 |
|
Wealth management income |
|
|
9,219 |
|
|
|
8,472 |
|
|
|
36,633 |
|
|
|
35,774 |
|
Insurance agency commissions |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,927 |
|
Income from bank owned life insurance |
|
|
1,207 |
|
|
|
950 |
|
|
|
4,210 |
|
|
|
3,141 |
|
Bank card fees |
|
|
454 |
|
|
|
463 |
|
|
|
1,769 |
|
|
|
4,379 |
|
Other income |
|
|
2,139 |
|
|
|
1,603 |
|
|
|
8,483 |
|
|
|
8,694 |
|
Total non-interest income |
|
|
16,560 |
|
|
|
14,297 |
|
|
|
67,078 |
|
|
|
87,019 |
|
Non-interest
expense: |
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
35,482 |
|
|
|
39,455 |
|
|
|
160,192 |
|
|
|
158,504 |
|
Occupancy expense of premises |
|
|
4,558 |
|
|
|
4,728 |
|
|
|
18,778 |
|
|
|
19,255 |
|
Equipment expenses |
|
|
3,987 |
|
|
|
3,859 |
|
|
|
15,675 |
|
|
|
14,779 |
|
Marketing |
|
|
1,242 |
|
|
|
1,354 |
|
|
|
5,103 |
|
|
|
5,197 |
|
Outside data services |
|
|
3,000 |
|
|
|
2,707 |
|
|
|
11,186 |
|
|
|
10,199 |
|
FDIC insurance |
|
|
2,615 |
|
|
|
1,462 |
|
|
|
9,461 |
|
|
|
4,792 |
|
Amortization of intangible assets |
|
|
1,403 |
|
|
|
1,408 |
|
|
|
5,223 |
|
|
|
5,814 |
|
Merger, acquisition and disposal expense |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,068 |
|
Professional fees and services |
|
|
5,628 |
|
|
|
2,573 |
|
|
|
17,982 |
|
|
|
9,169 |
|
Other expenses |
|
|
9,227 |
|
|
|
6,829 |
|
|
|
31,454 |
|
|
|
28,516 |
|
Total non-interest expense |
|
|
67,142 |
|
|
|
64,375 |
|
|
|
275,054 |
|
|
|
257,293 |
|
Income before income tax
expense |
|
|
34,559 |
|
|
|
45,764 |
|
|
|
164,135 |
|
|
|
222,358 |
|
Income tax expense |
|
|
8,459 |
|
|
|
11,784 |
|
|
|
41,291 |
|
|
|
56,059 |
|
Net income |
|
$ |
26,100 |
|
|
$ |
33,980 |
|
|
$ |
122,844 |
|
|
$ |
166,299 |
|
|
|
|
|
|
|
|
|
|
Net income per share
amounts: |
|
|
|
|
|
|
|
|
Basic net income per common share |
|
$ |
0.58 |
|
|
$ |
0.76 |
|
|
$ |
2.74 |
|
|
$ |
3.69 |
|
Diluted net income per common share |
|
$ |
0.58 |
|
|
$ |
0.76 |
|
|
$ |
2.73 |
|
|
$ |
3.68 |
|
Dividends declared per share |
|
$ |
0.34 |
|
|
$ |
0.34 |
|
|
$ |
1.36 |
|
|
$ |
1.36 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sandy
Spring Bancorp, Inc. and Subsidiaries
HISTORICAL TRENDS - QUARTERLY FINANCIAL DATA -
UNAUDITED |
|
|
|
|
|
|
|
|
|
|
|
2023
|
|
2022 |
(Dollars in thousands, except per share data) |
|
Q4 |
|
Q3 |
|
Q2 |
|
Q1 |
|
Q4 |
|
Q3 |
|
Q2 |
|
Q1 |
Profitability for the quarter: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax-equivalent interest income |
|
$ |
166,729 |
|
|
$ |
163,479 |
|
|
$ |
159,156 |
|
|
$ |
152,317 |
|
|
$ |
146,332 |
|
|
$ |
131,373 |
|
|
$ |
114,901 |
|
|
$ |
106,902 |
|
Interest expense |
|
|
83,920 |
|
|
|
77,330 |
|
|
|
67,679 |
|
|
|
54,045 |
|
|
|
38,657 |
|
|
|
17,462 |
|
|
|
7,959 |
|
|
|
4,585 |
|
Tax-equivalent net interest income |
|
|
82,809 |
|
|
|
86,149 |
|
|
|
91,477 |
|
|
|
98,272 |
|
|
|
107,675 |
|
|
|
113,911 |
|
|
|
106,942 |
|
|
|
102,317 |
|
Tax-equivalent adjustment |
|
|
1,113 |
|
|
|
1,068 |
|
|
|
1,006 |
|
|
|
970 |
|
|
|
1,032 |
|
|
|
951 |
|
|
|
992 |
|
|
|
866 |
|
Provision/ (credit) for credit
losses |
|
|
(3,445 |
) |
|
|
2,365 |
|
|
|
5,055 |
|
|
|
(21,536 |
) |
|
|
10,801 |
|
|
|
18,890 |
|
|
|
3,046 |
|
|
|
1,635 |
|
Non-interest income |
|
|
16,560 |
|
|
|
17,391 |
|
|
|
17,176 |
|
|
|
15,951 |
|
|
|
14,297 |
|
|
|
16,882 |
|
|
|
35,245 |
|
|
|
20,595 |
|
Non-interest expense |
|
|
67,142 |
|
|
|
72,471 |
|
|
|
69,136 |
|
|
|
66,305 |
|
|
|
64,375 |
|
|
|
65,780 |
|
|
|
64,991 |
|
|
|
62,147 |
|
Income before income tax
expense |
|
|
34,559 |
|
|
|
27,636 |
|
|
|
33,456 |
|
|
|
68,484 |
|
|
|
45,764 |
|
|
|
45,172 |
|
|
|
73,158 |
|
|
|
58,264 |
|
Income tax expense |
|
|
8,459 |
|
|
|
6,890 |
|
|
|
8,711 |
|
|
|
17,231 |
|
|
|
11,784 |
|
|
|
11,588 |
|
|
|
18,358 |
|
|
|
14,329 |
|
Net income |
|
$ |
26,100 |
|
|
$ |
20,746 |
|
|
$ |
24,745 |
|
|
$ |
51,253 |
|
|
$ |
33,980 |
|
|
$ |
33,584 |
|
|
$ |
54,800 |
|
|
$ |
43,935 |
|
GAAP financial
performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
|
0.73 |
% |
|
|
0.58 |
% |
|
|
0.70 |
% |
|
|
1.49 |
% |
|
|
0.98 |
% |
|
|
0.99 |
% |
|
|
1.69 |
% |
|
|
1.42 |
% |
Return on average common
equity |
|
|
6.70 |
% |
|
|
5.35 |
% |
|
|
6.46 |
% |
|
|
13.93 |
% |
|
|
9.23 |
% |
|
|
8.96 |
% |
|
|
14.97 |
% |
|
|
11.83 |
% |
Return on average tangible common
equity |
|
|
9.26 |
% |
|
|
7.42 |
% |
|
|
8.93 |
% |
|
|
19.10 |
% |
|
|
12.91 |
% |
|
|
12.49 |
% |
|
|
20.83 |
% |
|
|
16.45 |
% |
Net interest margin |
|
|
2.45 |
% |
|
|
2.55 |
% |
|
|
2.73 |
% |
|
|
2.99 |
% |
|
|
3.26 |
% |
|
|
3.53 |
% |
|
|
3.49 |
% |
|
|
3.49 |
% |
Efficiency ratio - GAAP
basis |
|
|
68.33 |
% |
|
|
70.72 |
% |
|
|
64.22 |
% |
|
|
58.55 |
% |
|
|
53.23 |
% |
|
|
50.66 |
% |
|
|
46.03 |
% |
|
|
50.92 |
% |
Non-GAAP financial
performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax pre-provision net
income |
|
$ |
31,114 |
|
|
$ |
30,001 |
|
|
$ |
38,511 |
|
|
$ |
46,948 |
|
|
$ |
56,565 |
|
|
$ |
64,062 |
|
|
$ |
76,204 |
|
|
$ |
59,899 |
|
Core after-tax earnings |
|
$ |
27,147 |
|
|
$ |
27,766 |
|
|
$ |
27,136 |
|
|
$ |
52,253 |
|
|
$ |
35,322 |
|
|
$ |
35,695 |
|
|
$ |
44,238 |
|
|
$ |
45,050 |
|
Core return on average
assets |
|
|
0.76 |
% |
|
|
0.78 |
% |
|
|
0.77 |
% |
|
|
1.52 |
% |
|
|
1.02 |
% |
|
|
1.05 |
% |
|
|
1.37 |
% |
|
|
1.45 |
% |
Core return on average common
equity |
|
|
6.97 |
% |
|
|
7.16 |
% |
|
|
7.09 |
% |
|
|
14.20 |
% |
|
|
9.60 |
% |
|
|
9.53 |
% |
|
|
12.09 |
% |
|
|
12.13 |
% |
Core return on average tangible
common equity |
|
|
9.26 |
% |
|
|
9.51 |
% |
|
|
9.43 |
% |
|
|
19.11 |
% |
|
|
13.02 |
% |
|
|
12.86 |
% |
|
|
16.49 |
% |
|
|
16.45 |
% |
Core earnings per diluted common
share |
|
$ |
0.60 |
|
|
$ |
0.62 |
|
|
$ |
0.60 |
|
|
$ |
1.16 |
|
|
$ |
0.79 |
|
|
$ |
0.80 |
|
|
$ |
0.98 |
|
|
$ |
0.99 |
|
Efficiency ratio - Non-GAAP
basis |
|
|
66.16 |
% |
|
|
60.91 |
% |
|
|
60.68 |
% |
|
|
56.87 |
% |
|
|
51.46 |
% |
|
|
48.18 |
% |
|
|
49.79 |
% |
|
|
49.34 |
% |
Per share
data: |
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to common
shareholders |
|
$ |
26,066 |
|
|
$ |
20,719 |
|
|
$ |
24,712 |
|
|
$ |
51,084 |
|
|
$ |
33,866 |
|
|
$ |
33,470 |
|
|
$ |
54,606 |
|
|
$ |
43,667 |
|
Basic net income per common
share |
|
$ |
0.58 |
|
|
$ |
0.46 |
|
|
$ |
0.55 |
|
|
$ |
1.14 |
|
|
$ |
0.76 |
|
|
$ |
0.75 |
|
|
$ |
1.21 |
|
|
$ |
0.97 |
|
Diluted net income per common
share |
|
$ |
0.58 |
|
|
$ |
0.46 |
|
|
$ |
0.55 |
|
|
$ |
1.14 |
|
|
$ |
0.76 |
|
|
$ |
0.75 |
|
|
$ |
1.21 |
|
|
$ |
0.96 |
|
Weighted average diluted common
shares |
|
|
45,009,574 |
|
|
|
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 |
|
|
$ |
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 |
|
|
2,749 |
|
|
|
2,704 |
|
|
|
2,606 |
|
|
|
2,388 |
|
|
|
2,419 |
|
|
|
2,591 |
|
|
|
2,467 |
|
|
|
2,326 |
|
Mortgage banking activities |
|
|
792 |
|
|
|
1,682 |
|
|
|
1,817 |
|
|
|
1,245 |
|
|
|
783 |
|
|
|
1,566 |
|
|
|
1,483 |
|
|
|
2,298 |
|
Wealth management income |
|
|
9,219 |
|
|
|
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 |
|
|
1,207 |
|
|
|
845 |
|
|
|
1,251 |
|
|
|
907 |
|
|
|
950 |
|
|
|
693 |
|
|
|
703 |
|
|
|
795 |
|
Bank card fees |
|
|
454 |
|
|
|
450 |
|
|
|
447 |
|
|
|
418 |
|
|
|
463 |
|
|
|
438 |
|
|
|
1,810 |
|
|
|
1,668 |
|
Other income |
|
|
2,139 |
|
|
|
2,319 |
|
|
|
2,024 |
|
|
|
2,001 |
|
|
|
1,603 |
|
|
|
2,908 |
|
|
|
2,135 |
|
|
|
2,048 |
|
Total non-interest income |
|
$ |
16,560 |
|
|
$ |
17,391 |
|
|
$ |
17,176 |
|
|
$ |
15,951 |
|
|
$ |
14,297 |
|
|
$ |
16,882 |
|
|
$ |
35,245 |
|
|
$ |
20,595 |
|
Non-interest
expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits |
|
$ |
35,482 |
|
|
$ |
44,853 |
|
|
$ |
40,931 |
|
|
$ |
38,926 |
|
|
$ |
39,455 |
|
|
$ |
40,126 |
|
|
$ |
39,550 |
|
|
$ |
39,373 |
|
Occupancy expense of
premises |
|
|
4,558 |
|
|
|
4,609 |
|
|
|
4,764 |
|
|
|
4,847 |
|
|
|
4,728 |
|
|
|
4,759 |
|
|
|
4,734 |
|
|
|
5,034 |
|
Equipment expenses |
|
|
3,987 |
|
|
|
3,811 |
|
|
|
3,760 |
|
|
|
4,117 |
|
|
|
3,859 |
|
|
|
3,825 |
|
|
|
3,559 |
|
|
|
3,536 |
|
Marketing |
|
|
1,242 |
|
|
|
729 |
|
|
|
1,589 |
|
|
|
1,543 |
|
|
|
1,354 |
|
|
|
1,370 |
|
|
|
1,280 |
|
|
|
1,193 |
|
Outside data services |
|
|
3,000 |
|
|
|
2,819 |
|
|
|
2,853 |
|
|
|
2,514 |
|
|
|
2,707 |
|
|
|
2,509 |
|
|
|
2,564 |
|
|
|
2,419 |
|
FDIC insurance |
|
|
2,615 |
|
|
|
2,333 |
|
|
|
2,375 |
|
|
|
2,138 |
|
|
|
1,462 |
|
|
|
1,268 |
|
|
|
1,078 |
|
|
|
984 |
|
Amortization of intangible
assets |
|
|
1,403 |
|
|
|
1,245 |
|
|
|
1,269 |
|
|
|
1,306 |
|
|
|
1,408 |
|
|
|
1,432 |
|
|
|
1,466 |
|
|
|
1,508 |
|
Merger, acquisition and
disposal |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
1,067 |
|
|
|
— |
|
Professional fees and
services |
|
|
5,628 |
|
|
|
4,509 |
|
|
|
4,161 |
|
|
|
3,684 |
|
|
|
2,573 |
|
|
|
2,207 |
|
|
|
2,372 |
|
|
|
2,017 |
|
Other expenses |
|
|
9,227 |
|
|
|
7,563 |
|
|
|
7,434 |
|
|
|
7,230 |
|
|
|
6,829 |
|
|
|
8,283 |
|
|
|
7,321 |
|
|
|
6,083 |
|
Total non-interest expense |
|
$ |
67,142 |
|
|
$ |
72,471 |
|
|
$ |
69,136 |
|
|
$ |
66,305 |
|
|
$ |
64,375 |
|
|
$ |
65,780 |
|
|
$ |
64,991 |
|
|
$ |
62,147 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sandy
Spring Bancorp, Inc. and Subsidiaries
HISTORICAL TRENDS - QUARTERLY FINANCIAL DATA -
UNAUDITED |
|
|
|
|
|
|
|
|
|
|
|
2023
|
|
2022 |
(Dollars in thousands, except per share data) |
|
Q4 |
|
Q3 |
|
Q2 |
|
Q1 |
|
Q4 |
|
Q3 |
|
Q2 |
|
Q1 |
Balance
sheets at quarter end: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial investor real estate loans |
|
$ |
5,104,425 |
|
|
$ |
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 |
|
|
1,755,235 |
|
|
|
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 |
|
|
988,967 |
|
|
|
938,673 |
|
|
|
1,045,742 |
|
|
|
1,046,665 |
|
|
|
1,090,028 |
|
|
|
1,143,783 |
|
|
|
1,094,528 |
|
|
|
1,089,331 |
|
Commercial business loans |
|
|
1,504,880 |
|
|
|
1,454,709 |
|
|
|
1,423,614 |
|
|
|
1,437,478 |
|
|
|
1,455,885 |
|
|
|
1,393,634 |
|
|
|
1,353,380 |
|
|
|
1,349,602 |
|
Residential mortgage
loans |
|
|
1,474,521 |
|
|
|
1,432,051 |
|
|
|
1,385,743 |
|
|
|
1,328,524 |
|
|
|
1,287,933 |
|
|
|
1,218,552 |
|
|
|
1,147,577 |
|
|
|
1,000,697 |
|
Residential construction
loans |
|
|
121,419 |
|
|
|
160,345 |
|
|
|
190,690 |
|
|
|
223,456 |
|
|
|
224,772 |
|
|
|
229,243 |
|
|
|
235,486 |
|
|
|
204,259 |
|
Consumer loans |
|
|
417,542 |
|
|
|
416,436 |
|
|
|
422,505 |
|
|
|
421,734 |
|
|
|
432,957 |
|
|
|
423,034 |
|
|
|
426,335 |
|
|
|
419,911 |
|
Total loans |
|
|
11,366,989 |
|
|
|
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 |
|
|
(120,865 |
) |
|
|
(123,360 |
) |
|
|
(120,287 |
) |
|
|
(117,613 |
) |
|
|
(136,242 |
) |
|
|
(128,268 |
) |
|
|
(113,670 |
) |
|
|
(110,588 |
) |
Loans held for sale |
|
|
10,836 |
|
|
|
19,235 |
|
|
|
21,476 |
|
|
|
16,262 |
|
|
|
11,706 |
|
|
|
11,469 |
|
|
|
23,610 |
|
|
|
17,537 |
|
Investment securities |
|
|
1,414,453 |
|
|
|
1,392,078 |
|
|
|
1,463,554 |
|
|
|
1,528,336 |
|
|
|
1,543,208 |
|
|
|
1,587,279 |
|
|
|
1,595,424 |
|
|
|
1,586,441 |
|
Total assets |
|
|
14,028,172 |
|
|
|
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 |
|
|
2,914,161 |
|
|
|
3,013,905 |
|
|
|
3,079,896 |
|
|
|
3,228,678 |
|
|
|
3,673,300 |
|
|
|
3,993,480 |
|
|
|
4,129,440 |
|
|
|
4,039,797 |
|
Total deposits |
|
|
10,996,538 |
|
|
|
11,151,012 |
|
|
|
10,958,922 |
|
|
|
11,075,991 |
|
|
|
10,953,421 |
|
|
|
10,749,486 |
|
|
|
10,969,461 |
|
|
|
10,852,794 |
|
Customer repurchase
agreements |
|
|
75,032 |
|
|
|
66,581 |
|
|
|
74,510 |
|
|
|
47,627 |
|
|
|
61,967 |
|
|
|
91,287 |
|
|
|
110,744 |
|
|
|
130,784 |
|
Total stockholders'
equity |
|
|
1,588,142 |
|
|
|
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 |
|
$ |
5,125,028 |
|
|
$ |
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 |
|
|
1,755,048 |
|
|
|
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 |
|
|
960,646 |
|
|
|
995,682 |
|
|
|
1,057,205 |
|
|
|
1,082,791 |
|
|
|
1,136,780 |
|
|
|
1,115,531 |
|
|
|
1,096,369 |
|
|
|
1,102,660 |
|
Commercial business loans |
|
|
1,433,035 |
|
|
|
1,442,518 |
|
|
|
1,441,489 |
|
|
|
1,444,588 |
|
|
|
1,373,565 |
|
|
|
1,327,218 |
|
|
|
1,334,350 |
|
|
|
1,372,755 |
|
Residential mortgage
loans |
|
|
1,451,614 |
|
|
|
1,406,929 |
|
|
|
1,353,809 |
|
|
|
1,307,761 |
|
|
|
1,251,829 |
|
|
|
1,177,664 |
|
|
|
1,070,836 |
|
|
|
964,056 |
|
Residential construction
loans |
|
|
142,325 |
|
|
|
174,204 |
|
|
|
211,590 |
|
|
|
223,313 |
|
|
|
231,318 |
|
|
|
235,123 |
|
|
|
221,031 |
|
|
|
197,366 |
|
Consumer loans |
|
|
419,299 |
|
|
|
421,189 |
|
|
|
423,306 |
|
|
|
424,122 |
|
|
|
426,134 |
|
|
|
422,963 |
|
|
|
421,022 |
|
|
|
424,859 |
|
Total loans |
|
|
11,286,995 |
|
|
|
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 |
|
|
10,132 |
|
|
|
13,714 |
|
|
|
17,480 |
|
|
|
8,324 |
|
|
|
10,901 |
|
|
|
15,211 |
|
|
|
12,744 |
|
|
|
17,594 |
|
Investment securities |
|
|
1,544,173 |
|
|
|
1,589,342 |
|
|
|
1,639,324 |
|
|
|
1,679,593 |
|
|
|
1,717,455 |
|
|
|
1,734,036 |
|
|
|
1,686,181 |
|
|
|
1,617,615 |
|
Interest-earning assets |
|
|
13,462,583 |
|
|
|
13,444,117 |
|
|
|
13,423,589 |
|
|
|
13,316,165 |
|
|
|
13,134,234 |
|
|
|
12,833,758 |
|
|
|
12,283,834 |
|
|
|
11,859,803 |
|
Total assets |
|
|
14,090,423 |
|
|
|
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 |
|
|
2,958,254 |
|
|
|
3,041,101 |
|
|
|
3,137,971 |
|
|
|
3,480,433 |
|
|
|
3,833,275 |
|
|
|
3,995,702 |
|
|
|
4,001,762 |
|
|
|
3,758,732 |
|
Total deposits |
|
|
11,089,587 |
|
|
|
11,076,724 |
|
|
|
10,928,038 |
|
|
|
11,049,991 |
|
|
|
11,025,843 |
|
|
|
10,740,999 |
|
|
|
10,829,221 |
|
|
|
10,542,029 |
|
Customer repurchase
agreements |
|
|
66,622 |
|
|
|
67,298 |
|
|
|
58,382 |
|
|
|
60,626 |
|
|
|
74,797 |
|
|
|
104,742 |
|
|
|
122,728 |
|
|
|
131,487 |
|
Total interest-bearing
liabilities |
|
|
9,418,666 |
|
|
|
9,332,617 |
|
|
|
9,257,652 |
|
|
|
8,806,720 |
|
|
|
8,310,278 |
|
|
|
7,892,230 |
|
|
|
7,377,045 |
|
|
|
7,163,641 |
|
Total stockholders'
equity |
|
|
1,546,312 |
|
|
|
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 |
|
|
10.97 |
% |
|
|
10.92 |
% |
|
|
10.89 |
% |
|
|
10.70 |
% |
|
|
10.61 |
% |
|
|
10.99 |
% |
|
|
11.30 |
% |
|
|
11.98 |
% |
Average investment securities
to average earning assets |
|
|
11.47 |
% |
|
|
11.82 |
% |
|
|
12.21 |
% |
|
|
12.61 |
% |
|
|
13.08 |
% |
|
|
13.51 |
% |
|
|
13.73 |
% |
|
|
13.64 |
% |
Average loans to average
earning assets |
|
|
83.84 |
% |
|
|
84.32 |
% |
|
|
84.98 |
% |
|
|
85.52 |
% |
|
|
85.70 |
% |
|
|
85.19 |
% |
|
|
84.53 |
% |
|
|
84.03 |
% |
Loans to assets |
|
|
81.03 |
% |
|
|
79.94 |
% |
|
|
81.24 |
% |
|
|
80.65 |
% |
|
|
82.39 |
% |
|
|
81.50 |
% |
|
|
81.08 |
% |
|
|
78.23 |
% |
Loans to deposits |
|
|
103.37 |
% |
|
|
101.34 |
% |
|
|
103.75 |
% |
|
|
102.88 |
% |
|
|
104.05 |
% |
|
|
104.37 |
% |
|
|
98.33 |
% |
|
|
93.47 |
% |
Assets under management |
|
$ |
5,999,520 |
|
|
$ |
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) |
|
|
9.51 |
% |
|
|
9.50 |
% |
|
|
9.42 |
% |
|
|
9.44 |
% |
|
|
9.33 |
% |
|
|
9.33 |
% |
|
|
9.53 |
% |
|
|
9.66 |
% |
Common equity tier 1 capital
to risk-weighted assets(1) |
|
|
10.90 |
% |
|
|
10.83 |
% |
|
|
10.65 |
% |
|
|
10.53 |
% |
|
|
10.23 |
% |
|
|
10.18 |
% |
|
|
10.42 |
% |
|
|
10.78 |
% |
Tier 1 capital to
risk-weighted assets(1) |
|
|
10.90 |
% |
|
|
10.83 |
% |
|
|
10.65 |
% |
|
|
10.53 |
% |
|
|
10.23 |
% |
|
|
10.18 |
% |
|
|
10.42 |
% |
|
|
10.78 |
% |
Total regulatory capital to
risk-weighted assets(1) |
|
|
14.92 |
% |
|
|
14.85 |
% |
|
|
14.60 |
% |
|
|
14.43 |
% |
|
|
14.20 |
% |
|
|
14.15 |
% |
|
|
14.46 |
% |
|
|
15.02 |
% |
Book value per common
share |
|
$ |
35.36 |
|
|
$ |
34.26 |
|
|
$ |
34.31 |
|
|
$ |
34.37 |
|
|
$ |
33.23 |
|
|
$ |
32.52 |
|
|
$ |
33.10 |
|
|
$ |
32.97 |
|
Outstanding common shares |
|
|
44,913,561 |
|
|
|
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 December 31, 2023. |
|
|
|
|
Sandy
Spring Bancorp, Inc. and Subsidiaries
LOAN PORTFOLIO QUALITY DETAIL - UNAUDITED |
|
|
|
|
|
|
|
|
|
2023
|
|
2022 |
(Dollars in thousands) |
|
December 31, |
|
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 |
|
|
20 |
|
|
|
415 |
|
|
|
29 |
|
|
|
3,002 |
|
|
|
1,002 |
|
|
|
1,966 |
|
|
|
— |
|
|
|
— |
|
Residential real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage |
|
|
342 |
|
|
|
— |
|
|
|
692 |
|
|
|
352 |
|
|
|
— |
|
|
|
167 |
|
|
|
353 |
|
|
|
296 |
|
Residential construction |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Consumer |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
34 |
|
|
|
— |
|
|
|
— |
|
Total loans 90 days past
due |
|
|
362 |
|
|
|
415 |
|
|
|
721 |
|
|
|
3,569 |
|
|
|
1,002 |
|
|
|
2,167 |
|
|
|
353 |
|
|
|
296 |
|
Non-accrual loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial investor real estate |
|
|
58,658 |
|
|
|
20,108 |
|
|
|
20,381 |
|
|
|
15,451 |
|
|
|
9,943 |
|
|
|
14,038 |
|
|
|
11,245 |
|
|
|
11,743 |
|
Commercial owner-occupied real estate |
|
|
4,640 |
|
|
|
4,744 |
|
|
|
4,846 |
|
|
|
4,949 |
|
|
|
5,019 |
|
|
|
6,294 |
|
|
|
7,869 |
|
|
|
8,083 |
|
Commercial AD&C |
|
|
1,259 |
|
|
|
1,422 |
|
|
|
569 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,353 |
|
|
|
1,081 |
|
Commercial business |
|
|
10,051 |
|
|
|
9,671 |
|
|
|
9,393 |
|
|
|
9,443 |
|
|
|
7,322 |
|
|
|
7,198 |
|
|
|
7,542 |
|
|
|
8,357 |
|
Residential real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage |
|
|
12,332 |
|
|
|
10,766 |
|
|
|
10,153 |
|
|
|
8,935 |
|
|
|
7,439 |
|
|
|
7,514 |
|
|
|
7,305 |
|
|
|
8,148 |
|
Residential construction |
|
|
443 |
|
|
|
449 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
51 |
|
Consumer |
|
|
4,102 |
|
|
|
4,187 |
|
|
|
3,396 |
|
|
|
4,900 |
|
|
|
5,059 |
|
|
|
5,173 |
|
|
|
5,692 |
|
|
|
6,406 |
|
Total non-accrual loans |
|
|
91,485 |
|
|
|
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 |
|
|
91,847 |
|
|
|
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 |
|
$ |
91,847 |
|
|
$ |
52,023 |
|
|
$ |
50,070 |
|
|
$ |
47,892 |
|
|
$ |
40,004 |
|
|
$ |
45,200 |
|
|
$ |
44,218 |
|
|
$ |
47,360 |
|
|
|
For the Quarter Ended, |
(Dollars in thousands) |
|
December 31,
2023 |
|
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 |
|
$ |
51,347 |
|
|
$ |
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 |
|
|
(7,619 |
) |
|
|
(1,545 |
) |
|
|
(1,654 |
) |
|
|
(10,212 |
) |
|
|
(9,535 |
) |
|
|
(3,509 |
) |
|
|
(3,234 |
) |
|
|
(2,787 |
) |
Loans placed on non-accrual |
|
|
47,920 |
|
|
|
4,967 |
|
|
|
9,276 |
|
|
|
19,714 |
|
|
|
5,467 |
|
|
|
4,212 |
|
|
|
948 |
|
|
|
1,503 |
|
Non-accrual loans brought current |
|
|
(163 |
) |
|
|
(630 |
) |
|
|
(513 |
) |
|
|
(480 |
) |
|
|
(1,345 |
) |
|
|
(1,296 |
) |
|
|
(200 |
) |
|
|
(668 |
) |
Balance at end of period |
|
$ |
91,485 |
|
|
$ |
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 |
|
$ |
123,360 |
|
|
$ |
120,287 |
|
|
$ |
117,613 |
|
|
$ |
136,242 |
|
|
$ |
128,268 |
|
|
$ |
113,670 |
|
|
$ |
110,588 |
|
|
$ |
109,145 |
|
Provision/ (credit) for credit losses - loans |
|
|
(2,574 |
) |
|
|
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 |
) |
|
|
(3 |
) |
|
|
(14 |
) |
|
|
(5 |
) |
|
|
(1 |
) |
|
|
— |
|
|
|
(300 |
) |
|
|
(19 |
) |
Commercial owner-occupied real estate |
|
|
(27 |
) |
|
|
(25 |
) |
|
|
(27 |
) |
|
|
(26 |
) |
|
|
(27 |
) |
|
|
(10 |
) |
|
|
(12 |
) |
|
|
— |
|
Commercial AD&C |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Commercial business |
|
|
(105 |
) |
|
|
15 |
|
|
|
363 |
|
|
|
(127 |
) |
|
|
(13 |
) |
|
|
(512 |
) |
|
|
331 |
|
|
|
111 |
|
Residential real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage |
|
|
(6 |
) |
|
|
(4 |
) |
|
|
35 |
|
|
|
21 |
|
|
|
(50 |
) |
|
|
(8 |
) |
|
|
(9 |
) |
|
|
120 |
|
Residential construction |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3 |
) |
|
|
(5 |
) |
|
|
— |
|
Consumer |
|
|
62 |
|
|
|
115 |
|
|
|
1,423 |
|
|
|
(179 |
) |
|
|
24 |
|
|
|
27 |
|
|
|
(41 |
) |
|
|
(20 |
) |
Net charge-offs/
(recoveries) |
|
|
(79 |
) |
|
|
98 |
|
|
|
1,780 |
|
|
|
(316 |
) |
|
|
(67 |
) |
|
|
(506 |
) |
|
|
(36 |
) |
|
|
192 |
|
Balance at the end of period |
|
$ |
120,865 |
|
|
$ |
123,360 |
|
|
$ |
120,287 |
|
|
$ |
117,613 |
|
|
$ |
136,242 |
|
|
$ |
128,268 |
|
|
$ |
113,670 |
|
|
$ |
110,588 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset quality
ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans to total loans |
|
|
0.81 |
% |
|
|
0.46 |
% |
|
|
0.44 |
% |
|
|
0.41 |
% |
|
|
0.35 |
% |
|
|
0.40 |
% |
|
|
0.40 |
% |
|
|
0.46 |
% |
Non-performing assets to total assets |
|
|
0.65 |
% |
|
|
0.37 |
% |
|
|
0.36 |
% |
|
|
0.34 |
% |
|
|
0.29 |
% |
|
|
0.33 |
% |
|
|
0.33 |
% |
|
|
0.37 |
% |
Allowance for credit losses to loans |
|
|
1.06 |
% |
|
|
1.09 |
% |
|
|
1.06 |
% |
|
|
1.03 |
% |
|
|
1.20 |
% |
|
|
1.14 |
% |
|
|
1.05 |
% |
|
|
1.09 |
% |
Allowance for credit losses to non-performing loans |
|
|
131.59 |
% |
|
|
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 Subsidiaries
CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES -
UNAUDITED |
|
|
|
|
|
Three Months Ended December 31, |
|
|
2023
|
|
2022 |
(Dollars in thousands and tax-equivalent) |
|
Average
Balances |
|
Interest(1) |
|
Annualized
Average
Yield/Rate |
|
Average
Balances |
|
Interest(1) |
|
Annualized
Average
Yield/Rate |
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial investor real estate loans |
|
$ |
5,125,028 |
|
|
$ |
60,909 |
|
|
4.72 |
% |
|
$ |
5,082,697 |
|
|
$ |
56,353 |
|
|
4.40 |
% |
Commercial owner-occupied real
estate loans |
|
|
1,755,048 |
|
|
|
21,011 |
|
|
4.75 |
|
|
|
1,753,351 |
|
|
|
20,433 |
|
|
4.62 |
|
Commercial AD&C loans |
|
|
960,646 |
|
|
|
20,510 |
|
|
8.47 |
|
|
|
1,136,780 |
|
|
|
18,868 |
|
|
6.59 |
|
Commercial business loans |
|
|
1,433,035 |
|
|
|
23,822 |
|
|
6.60 |
|
|
|
1,373,565 |
|
|
|
20,395 |
|
|
5.89 |
|
Total commercial loans |
|
|
9,273,757 |
|
|
|
126,252 |
|
|
5.40 |
|
|
|
9,346,393 |
|
|
|
116,049 |
|
|
4.93 |
|
Residential mortgage loans |
|
|
1,451,614 |
|
|
|
12,984 |
|
|
3.58 |
|
|
|
1,251,829 |
|
|
|
10,919 |
|
|
3.49 |
|
Residential construction
loans |
|
|
142,325 |
|
|
|
1,515 |
|
|
4.22 |
|
|
|
231,318 |
|
|
|
1,851 |
|
|
3.17 |
|
Consumer loans |
|
|
419,299 |
|
|
|
8,543 |
|
|
8.08 |
|
|
|
426,134 |
|
|
|
6,775 |
|
|
6.31 |
|
Total residential and consumer loans |
|
|
2,013,238 |
|
|
|
23,042 |
|
|
4.56 |
|
|
|
1,909,281 |
|
|
|
19,545 |
|
|
4.08 |
|
Total loans(2) |
|
|
11,286,995 |
|
|
|
149,294 |
|
|
5.25 |
|
|
|
11,255,674 |
|
|
|
135,594 |
|
|
4.78 |
|
Loans held for sale |
|
|
10,132 |
|
|
|
199 |
|
|
7.86 |
|
|
|
10,901 |
|
|
|
234 |
|
|
8.58 |
|
Taxable securities |
|
|
1,193,408 |
|
|
|
6,454 |
|
|
2.16 |
|
|
|
1,243,089 |
|
|
|
6,047 |
|
|
1.95 |
|
Tax-advantaged securities |
|
|
350,765 |
|
|
|
2,322 |
|
|
2.64 |
|
|
|
474,366 |
|
|
|
3,026 |
|
|
2.55 |
|
Total investment securities(3) |
|
|
1,544,173 |
|
|
|
8,776 |
|
|
2.27 |
|
|
|
1,717,455 |
|
|
|
9,073 |
|
|
2.11 |
|
Interest-bearing deposits with
banks |
|
|
621,007 |
|
|
|
8,456 |
|
|
5.40 |
|
|
|
149,651 |
|
|
|
1,427 |
|
|
3.78 |
|
Federal funds sold |
|
|
276 |
|
|
|
4 |
|
|
5.43 |
|
|
|
553 |
|
|
|
4 |
|
|
2.97 |
|
Total interest-earning assets |
|
|
13,462,583 |
|
|
|
166,729 |
|
|
4.92 |
|
|
|
13,134,234 |
|
|
|
146,332 |
|
|
4.43 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: allowance for credit losses
- loans |
|
|
(121,851 |
) |
|
|
|
|
|
|
(127,404 |
) |
|
|
|
|
Cash and due from banks |
|
|
89,143 |
|
|
|
|
|
|
|
94,840 |
|
|
|
|
|
Premises and equipment, net |
|
|
69,162 |
|
|
|
|
|
|
|
65,958 |
|
|
|
|
|
Other assets |
|
|
591,386 |
|
|
|
|
|
|
|
601,844 |
|
|
|
|
|
Total assets |
|
$ |
14,090,423 |
|
|
|
|
|
|
$ |
13,769,472 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand
deposits |
|
$ |
1,474,748 |
|
|
$ |
5,612 |
|
|
1.51 |
% |
|
$ |
1,398,120 |
|
|
$ |
1,664 |
|
|
0.47 |
% |
Regular savings deposits |
|
|
1,153,610 |
|
|
|
9,715 |
|
|
3.34 |
|
|
|
528,306 |
|
|
|
232 |
|
|
0.17 |
|
Money market savings
deposits |
|
|
2,697,930 |
|
|
|
24,456 |
|
|
3.60 |
|
|
|
3,231,952 |
|
|
|
16,480 |
|
|
2.02 |
|
Time deposits |
|
|
2,805,045 |
|
|
|
30,030 |
|
|
4.25 |
|
|
|
2,034,190 |
|
|
|
9,900 |
|
|
1.93 |
|
Total interest-bearing deposits |
|
|
8,131,333 |
|
|
|
69,813 |
|
|
3.41 |
|
|
|
7,192,568 |
|
|
|
28,276 |
|
|
1.56 |
|
Repurchase agreements |
|
|
66,622 |
|
|
|
354 |
|
|
2.11 |
|
|
|
74,797 |
|
|
|
20 |
|
|
0.11 |
|
Federal funds purchased and
Federal Reserve Bank borrowings |
|
|
300,000 |
|
|
|
3,721 |
|
|
4.92 |
|
|
|
172,478 |
|
|
|
1,677 |
|
|
3.86 |
|
Advances from FHLB |
|
|
550,000 |
|
|
|
6,086 |
|
|
4.39 |
|
|
|
500,326 |
|
|
|
4,759 |
|
|
3.77 |
|
Subordinated debt |
|
|
370,711 |
|
|
|
3,946 |
|
|
4.26 |
|
|
|
370,109 |
|
|
|
3,925 |
|
|
4.24 |
|
Total borrowings |
|
|
1,287,333 |
|
|
|
14,107 |
|
|
4.35 |
|
|
|
1,117,710 |
|
|
|
10,381 |
|
|
3.68 |
|
Total interest-bearing liabilities |
|
|
9,418,666 |
|
|
|
83,920 |
|
|
3.54 |
|
|
|
8,310,278 |
|
|
|
38,657 |
|
|
1.85 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand
deposits |
|
|
2,958,254 |
|
|
|
|
|
|
|
3,833,275 |
|
|
|
|
|
Other liabilities |
|
|
167,191 |
|
|
|
|
|
|
|
165,665 |
|
|
|
|
|
Stockholders' equity |
|
|
1,546,312 |
|
|
|
|
|
|
|
1,460,254 |
|
|
|
|
|
Total liabilities and stockholders' equity |
|
$ |
14,090,423 |
|
|
|
|
|
|
$ |
13,769,472 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax-equivalent net interest
income and spread |
|
|
|
$ |
82,809 |
|
|
1.38 |
% |
|
|
|
$ |
107,675 |
|
|
2.58 |
% |
Less: tax-equivalent adjustment |
|
|
|
|
1,113 |
|
|
|
|
|
|
|
1,032 |
|
|
|
Net interest income |
|
|
|
$ |
81,696 |
|
|
|
|
|
|
$ |
106,643 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income/earning
assets |
|
|
|
|
|
4.92 |
% |
|
|
|
|
|
4.43 |
% |
Interest expense/earning
assets |
|
|
|
|
|
2.47 |
|
|
|
|
|
|
1.17 |
|
Net interest margin |
|
|
|
|
|
2.45 |
% |
|
|
|
|
|
3.26 |
% |
(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 Subsidiaries
CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES -
UNAUDITED |
|
|
|
|
|
Year Ended December 31, |
|
|
2023
|
|
2022 |
(Dollars in thousands and
tax-equivalent) |
|
Average
Balances |
|
Interest(1) |
|
Annualized
Average
Yield/Rate |
|
Average
Balances |
|
Interest(1) |
|
Annualized
Average
Yield/Rate |
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial investor real estate loans |
|
$ |
5,133,279 |
|
|
$ |
237,976 |
|
|
4.64 |
% |
|
$ |
4,681,607 |
|
|
$ |
194,598 |
|
|
4.16 |
% |
Commercial owner-occupied real
estate loans |
|
|
1,766,839 |
|
|
|
82,049 |
|
|
4.64 |
|
|
|
1,730,293 |
|
|
|
78,559 |
|
|
4.54 |
|
Commercial AD&C loans |
|
|
1,023,669 |
|
|
|
81,515 |
|
|
7.96 |
|
|
|
1,112,936 |
|
|
|
56,689 |
|
|
5.09 |
|
Commercial business loans |
|
|
1,440,382 |
|
|
|
92,080 |
|
|
6.39 |
|
|
|
1,351,906 |
|
|
|
69,765 |
|
|
5.16 |
|
Total commercial loans |
|
|
9,364,169 |
|
|
|
493,620 |
|
|
5.27 |
|
|
|
8,876,742 |
|
|
|
399,611 |
|
|
4.50 |
|
Residential mortgage loans |
|
|
1,380,496 |
|
|
|
48,909 |
|
|
3.54 |
|
|
|
1,117,053 |
|
|
|
37,551 |
|
|
3.36 |
|
Residential construction
loans |
|
|
187,599 |
|
|
|
6,817 |
|
|
3.63 |
|
|
|
221,341 |
|
|
|
6,963 |
|
|
3.15 |
|
Consumer loans |
|
|
421,963 |
|
|
|
32,946 |
|
|
7.81 |
|
|
|
423,746 |
|
|
|
19,887 |
|
|
4.69 |
|
Total residential and consumer loans |
|
|
1,990,058 |
|
|
|
88,672 |
|
|
4.46 |
|
|
|
1,762,140 |
|
|
|
64,401 |
|
|
3.65 |
|
Total loans(2) |
|
|
11,354,227 |
|
|
|
582,292 |
|
|
5.13 |
|
|
|
10,638,882 |
|
|
|
464,012 |
|
|
4.36 |
|
Loans held for sale |
|
|
12,421 |
|
|
|
896 |
|
|
7.21 |
|
|
|
14,097 |
|
|
|
738 |
|
|
5.24 |
|
Taxable securities |
|
|
1,254,739 |
|
|
|
26,992 |
|
|
2.15 |
|
|
|
1,214,032 |
|
|
|
20,519 |
|
|
1.69 |
|
Tax-advantaged securities |
|
|
357,933 |
|
|
|
9,049 |
|
|
2.53 |
|
|
|
475,187 |
|
|
|
11,559 |
|
|
2.43 |
|
Total investment securities(3) |
|
|
1,612,672 |
|
|
|
36,041 |
|
|
2.23 |
|
|
|
1,689,219 |
|
|
|
32,078 |
|
|
1.90 |
|
Interest-bearing deposits with
banks |
|
|
432,392 |
|
|
|
22,435 |
|
|
5.19 |
|
|
|
189,465 |
|
|
|
2,672 |
|
|
1.41 |
|
Federal funds sold |
|
|
393 |
|
|
|
17 |
|
|
4.26 |
|
|
|
574 |
|
|
|
8 |
|
|
1.41 |
|
Total interest-earning assets |
|
|
13,412,105 |
|
|
|
641,681 |
|
|
4.78 |
|
|
|
12,532,237 |
|
|
|
499,508 |
|
|
3.99 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: allowance for credit losses
- loans |
|
|
(124,624 |
) |
|
|
|
|
|
|
(116,170 |
) |
|
|
|
|
Cash and due from banks |
|
|
93,494 |
|
|
|
|
|
|
|
84,992 |
|
|
|
|
|
Premises and equipment, net |
|
|
69,886 |
|
|
|
|
|
|
|
63,379 |
|
|
|
|
|
Other assets |
|
|
604,784 |
|
|
|
|
|
|
|
654,386 |
|
|
|
|
|
Total assets |
|
$ |
14,055,645 |
|
|
|
|
|
|
$ |
13,218,824 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand
deposits |
|
$ |
1,429,219 |
|
|
$ |
16,077 |
|
|
1.12 |
% |
|
$ |
1,457,833 |
|
|
$ |
3,177 |
|
|
0.22 |
% |
Regular savings deposits |
|
|
784,575 |
|
|
|
17,546 |
|
|
2.24 |
|
|
|
547,510 |
|
|
|
294 |
|
|
0.05 |
|
Money market savings
deposits |
|
|
2,974,580 |
|
|
|
93,432 |
|
|
3.14 |
|
|
|
3,308,678 |
|
|
|
23,883 |
|
|
0.72 |
|
Time deposits |
|
|
2,695,232 |
|
|
|
97,973 |
|
|
3.64 |
|
|
|
1,573,868 |
|
|
|
16,500 |
|
|
1.05 |
|
Total interest-bearing deposits |
|
|
7,883,606 |
|
|
|
225,028 |
|
|
2.85 |
|
|
|
6,887,889 |
|
|
|
43,854 |
|
|
0.64 |
|
Repurchase agreements |
|
|
63,259 |
|
|
|
915 |
|
|
1.45 |
|
|
|
108,273 |
|
|
|
124 |
|
|
0.11 |
|
Federal funds purchased and
Federal Reserve Bank borrowings |
|
|
273,508 |
|
|
|
13,537 |
|
|
4.95 |
|
|
|
107,785 |
|
|
|
2,805 |
|
|
2.60 |
|
Advances from FHLB |
|
|
615,082 |
|
|
|
27,709 |
|
|
4.50 |
|
|
|
256,621 |
|
|
|
7,825 |
|
|
3.05 |
|
Subordinated debt |
|
|
370,487 |
|
|
|
15,785 |
|
|
4.26 |
|
|
|
328,939 |
|
|
|
14,055 |
|
|
4.27 |
|
Total borrowings |
|
|
1,322,336 |
|
|
|
57,946 |
|
|
4.38 |
|
|
|
801,618 |
|
|
|
24,809 |
|
|
3.09 |
|
Total interest-bearing liabilities |
|
|
9,205,942 |
|
|
|
282,974 |
|
|
3.07 |
|
|
|
7,689,507 |
|
|
|
68,663 |
|
|
0.89 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand
deposits |
|
|
3,152,699 |
|
|
|
|
|
|
|
3,897,842 |
|
|
|
|
|
Other liabilities |
|
|
168,762 |
|
|
|
|
|
|
|
151,277 |
|
|
|
|
|
Stockholders' equity |
|
|
1,528,242 |
|
|
|
|
|
|
|
1,480,198 |
|
|
|
|
|
Total liabilities and stockholders' equity |
|
$ |
14,055,645 |
|
|
|
|
|
|
$ |
13,218,824 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax-equivalent net interest
income and spread |
|
|
|
$ |
358,707 |
|
|
1.71 |
% |
|
|
|
$ |
430,845 |
|
|
3.10 |
% |
Less: tax-equivalent adjustment |
|
|
|
|
4,157 |
|
|
|
|
|
|
|
3,841 |
|
|
|
Net interest income |
|
|
|
$ |
354,550 |
|
|
|
|
|
|
$ |
427,004 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income/earning
assets |
|
|
|
|
|
4.78 |
% |
|
|
|
|
|
3.99 |
% |
Interest expense/earning
assets |
|
|
|
|
|
2.11 |
|
|
|
|
|
|
0.55 |
|
Net interest margin |
|
|
|
|
|
2.67 |
% |
|
|
|
|
|
3.44 |
% |
(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
$4.2 million and $3.8 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)
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From May 2024 to Jun 2024
Sandy Spring Bancorp (NASDAQ:SASR)
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From Jun 2023 to Jun 2024