Sandy Spring Bancorp Reports a 40% Increase in Net Income for the First Quarter of 2019

Company Release - 4/18/2019 7:00 AM ET

OLNEY, Md., April 18, 2019 (GLOBE NEWSWIRE) -- Sandy Spring Bancorp, Inc., (Nasdaq-SASR), the parent company of Sandy Spring Bank, today reported net income for the first quarter of 2019 of $30.3 million ($0.85 per diluted share) compared to net income of $21.7 million ($0.61 per diluted share) for the first quarter of 2018 and net income of $25.6 million ($0.72 per diluted share) for the fourth quarter of 2018. The prior year’s first quarter’s results included the impact of $9.0 million in merger expenses associated with the acquisition of WashingtonFirst Bankshares, Inc. (“WashingtonFirst”).  Exclusive of the after-tax impact of these expenses adjusted earnings per diluted share for the prior year quarter was $0.79 per share. 

“In the first quarter we saw balanced results and meaningful contributions from all major business lines,” said Daniel J. Schrider, President and Chief Executive Officer. “Our strong performance reflects the coordinated approach we take to serving our clients. Our teams work across disciplines and geographic locations to address our clients’ complete financial picture. This approach distinguishes us in a highly competitive market, and it delivers results for our clients and the company.”  

First Quarter Highlights: 

  • Total assets grew by 5% while loans and deposits grew by 8% and 11%, respectively, compared to the prior year.
  • First quarter results reflected an annualized return on average assets of 1.49% and annualized return on average common equity of 11.46% as compared to 1.12% and 8.70% respectively for the first quarter of 2018.  Exclusive of the prior year’s first quarter merger costs on an after-tax basis, the return on average assets and return on average common equity would have been 1.47% and 11.40%, respectively.
  • The net interest margin was 3.60% for the first quarter of 2019, compared to 3.58% for the first quarter of 2018 and 3.57% for the fourth quarter of 2018. Excluding recovered interest income on acquired credit impaired loans during the quarter the net interest margin would have been 3.52%.  No recovered interest was recorded in the first or fourth quarter of 2018.
  • Non-interest income excluding insurance mortality proceeds and securities gains increased 6% from the prior year quarter. 
  • Tangible book value increased 10% to $21.05 per share at the end of the first quarter of the current year compared to $19.12 at March 31, 2018. 
  • The tangible common equity ratio increased to 9.39% at March 31, 2019 from 8.99% at March 31, 2018.
  • The Non-GAAP efficiency ratio was 51.44% for the current quarter as compared to 49.54% for the first quarter of 2018 and 51.78% for the fourth quarter of 2018.             

Review of Balance Sheet and Credit Quality

Driven by loan growth, total assets grew to $8.3 billion at March 31, 2019, as compared to $7.9 billion at March 31, 2018. Total loans at March 31, 2019, were $6.6 billion compared to $6.1 billion at March 31, 2018.  Deposit growth was 11% from March 31, 2018, to March 31, 2019, as interest-bearing deposits experienced 14% growth and noninterest-bearing deposits grew 3%.

Tangible common equity grew to $748 million at March 31, 2019, compared to $678 million at March 31, 2018. At March 31, 2019, the Company had a total risk-based capital ratio of 12.54%, a common equity tier 1 risk-based capital ratio of 11.19%, a tier 1 risk-based capital ratio of 11.35% and a tier 1 leverage ratio of 9.61%.

The level of non-performing loans to total loans increased to 0.61% at March 31, 2019, compared to 0.48% at March 31, 2018.  At March 31, 2019, non-performing loans totaled $40.1 million, compared to $29.4 million at March 31, 2018, and $36.0 million at December 31, 2018. The growth in non-performing loans occurred as a result of modest increase in all segments of the loan portfolio, predominantly loans secured by real estate.  Non-performing loans include accruing loans 90 days or more past due and restructured loans, but exclude loans that were considered non-performing from the acquired loan portfolios.

Loan charge-offs, net of recoveries, totaled $0.3 million for the first quarter of 2019 compared to $0.3 million for the first quarter of 2018.  The allowance for loan losses represented 0.81% of outstanding loans and 132% of non-performing loans at March 31, 2019, compared to 0.77% of outstanding loans and 160% of non-performing loans at March 31, 2018.

Income Statement Review

Net interest income for the first quarter of 2019 increased 6% compared to the first quarter of 2018 as a result of the Company’s organic loan growth during the period which more than offset the impact of deposit growth.  The net interest margin improved to 3.60% for the first quarter of 2019 compared to 3.58% for the first quarter of 2018.  The first quarter of 2019 included $1.8 million in recovered interest income on acquired credit impaired loans. Excluding the recovered interest income, the first quarter’s net interest margin would have been 3.52% compared to the prior year’s margin of 3.58% which did not contain any recovered interest income. 

The provision for loan losses was a credit of $0.1 million for the first quarter of 2019 compared to a charge of $2.0 million for the first quarter of 2018 and $3.4 million for the fourth quarter of 2018.  The decrease in the provision for the current period compared to the prior year was primarily the result of the overall improvement in the qualitative credit metrics of the loan portfolio during the previous twelve months and lower loan growth during the current quarter.

Non-interest income was $17.0 million for the first quarter of 2019 as compared to the $17.1 million for the first quarter of 2018.  The current quarter included $0.6 million in life insurance mortality proceeds compared to $1.6 million in the prior year quarter in addition to $0.1 million in securities gains.   Exclusive of these proceeds and securities gains, the growth in non-interest income for the quarter was 6% or $0.9 million compared to the prior year quarter.  The majority of this increase was derived from mortgage banking activities and, to a lesser extent, wealth management income and credit related fees. 

Non-interest expenses decreased 11% to $44.2 million for the first quarter of 2019 compared to $49.6 million in the first quarter of 2018.  The prior year’s quarter included $9.0 million in merger expenses.  Exclusive of the merger expenses, non-interest expense for the current quarter increased 9% primarily due to the increase in compensation and benefit expense.  This increase was the result of the combination of higher compensation expense from normal merit increases over the preceding twelve months, an increase in health care expenses experienced during the current quarter and management’s decision to increase the Company’s contribution to the employee retirement savings plan as a result of the reduction in the corporate tax rate that occurred at the end of 2017. 

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:

  • Adjusted diluted earnings per share is non-GAAP in that it excludes merger expenses and other selected items, net of tax.
  • Tangible common equity and related measures are non-GAAP measures that exclude the impact of intangible assets.
  • The Non-GAAP efficiency ratio is non-GAAP in that it excludes amortization of intangible assets, merger expenses and securities gains and includes tax-equivalent income.

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 which may be presented by other companies. Please refer to the Non-GAAP Reconciliation table 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 first 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 1-800-866-235-9910. A password is not necessary.  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 9:00 am (ET) May 2, 2019.  A replay of the teleconference will be available through the same time period by calling 1-877-344-7529 under conference call number 10129889.

About Sandy Spring Bancorp, Inc.

Sandy Spring Bancorp, Inc., headquartered in Olney, Maryland, is the holding company for Sandy Spring Bank. Independent and community-oriented, Sandy Spring Bank offers a broad range of commercial banking, retail banking, mortgage and trust services throughout central Maryland, Northern Virginia, and the greater Washington, D.C. market. Through its subsidiaries, Sandy Spring Insurance Corporation and West Financial Services, Inc., Sandy Spring Bank also offers a comprehensive menu of insurance and wealth management services. Visit www.sandyspringbank.com for more information.

For additional information or questions, please contact:
            Daniel J. Schrider, 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:  [email protected]
                        [email protected]
            Website: www.sandyspringbank.com

            Media Contact:
            Jen Schell
            301-570-8331
            [email protected]

Forward-Looking Statements

Sandy Spring Bancorp makes forward-looking statements in this news release and in the conference call regarding this news release.  These forward-looking statements may include: statements of goals, intentions, earnings expectations, and other expectations; estimates of risks and of future costs and benefits; assessments of probable loan losses; assessments of market risk; and statements of the ability to achieve financial and other goals.

Forward-looking statements are typically identified by words such as “believe,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,” “forecast,” “project” and other similar words and expressions.  Forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time.  Forward-looking statements speak only as of the date they are made.  Sandy Spring Bancorp does not assume any duty and does not undertake to update its forward-looking statements.  Because forward-looking statements are subject to assumptions and uncertainties, actual results or future events could differ, possibly materially, from those that Sandy Spring Bancorp anticipated in its forward-looking statements and future results could differ materially from historical performance.

Sandy Spring Bancorp’s forward-looking statements are subject to the following principal risks and uncertainties: general economic conditions and trends, either nationally or locally; conditions in the securities markets; changes in interest rates; changes in deposit flows, and in the demand for deposit, loan, and investment products and other financial services; changes in real estate values; changes in the quality or composition of the Company’s loan or investment portfolios; changes in competitive pressures among financial institutions or from non-financial institutions; the Company’s ability to retain key members of management; changes in legislation, regulations, and policies; the possibility that any of the anticipated benefits of acquisitions will not be realized or will not be realized within the expected time period; and a variety of other matters which, by their nature, are subject to significant uncertainties.  Sandy Spring Bancorp provides greater detail regarding some of these factors in its Form 10-K for the year ended December 31, 2018, including in the Risk Factors section of that report, and in its other SEC reports.  Sandy Spring Bancorp’s forward-looking statements may also be subject to other risks and uncertainties, including those that it may discuss elsewhere in this news release or in its filings with the SEC, accessible on the SEC’s Web site at www.sec.gov.


Sandy Spring Bancorp, Inc. and Subsidiaries       
FINANCIAL HIGHLIGHTS - UNAUDITED       
        
  Three Months Ended   
  March 31, % 
(Dollars in thousands, except per share data)  2019   2018 Change 
Results of Operations:       
  Net interest income $   66,750   $  62,891 6 %
  Provision for loan losses    (128)  1,997 (106) 
  Non-interest income    16,969      17,118 (1) 
  Non-interest expenses    44,192      49,641 (11) 
  Income before income taxes    39,655      28,371 40  
  Net income     30,317      21,665 40  
        
  Pre-tax pre-provision pre-merger income (5) $   39,527   $  39,326 1  
        
  Return on average assets    1.49  %   1.12%  
  Return on average common equity    11.46  %   8.70%  
  Net interest margin    3.60  %   3.58%  
  Efficiency ratio - GAAP basis  (1)    52.79  %   62.04%  
  Efficiency ratio - Non-GAAP basis  (1)    51.44  %   49.54%  
        
Per share data:       
  Basic net income $   0.85   $  0.61 39 %
  Diluted net income $   0.85   $  0.61 39  
  Average fully diluted shares   35,806,459      35,683,542   -  
  Dividends declared per share $   0.28   $  0.26 8  
  Book value per share    30.82    28.61 8  
  Tangible book value per share (5)    21.05    19.12 10  
  Outstanding shares   35,557,110      35,463,269   -  
        
Financial Condition at period-end:       
  Investment securities $   987,299   $  1,040,339 (5)%
  Loans    6,569,990      6,061,551 8  
  Interest-earning assets    7,648,654      7,285,731 5  
  Assets    8,327,900      7,894,918 5  
  Deposits    6,224,523      5,627,206 11  
  Interest-bearing liabilities    5,297,108      5,057,645 5  
  Stockholders' equity    1,095,848      1,014,608 8  
        
Capital ratios:       
  Tier 1 leverage  (4)    9.61  % 9.21%  
  Tier 1 capital to risk-weighted assets  (4)    11.35  % 11.08%  
  Total regulatory capital to risk-weighted assets  (4)    12.54  % 12.27%  
  Common equity tier 1 capital to risk-weighted assets  (4)    11.19  % 10.92%  
  Tangible common equity to tangible assets  (2)    9.39  % 8.99%  
  Average equity to average assets    13.00  % 12.88%  
        
Credit quality ratios:       
  Allowance for loan losses to loans    0.81  %   0.77%  
  Non-performing loans to total loans    0.61  %   0.48%  
  Non-performing assets to total assets    0.50  %   0.41%  
  Allowance for loan losses to non-performing loans    132.35  %   159.67%  
  Annualized net charge-offs to average loans  (3)    0.02  %   0.02%  
        
(1) The efficiency ratio - GAAP basis is non-interest expenses 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 and merger expenses from non-interest expense,
  securities gains from non-interest income and adds the tax-equivalent adjustment to net interest income.  See the Reconciliation Table included with these 
  Financial Highlights.       
(2) The tangible common equity to tangible assets ratio is a non-GAAP ratio that divides assets excluding intangible assets into stockholders' equity after 
  deducting intangible assets and other comprehensive gains (losses).  See the Reconciliation Table included with these Financial Highlights.
(3) Calculation utilizes average loans, excluding residential mortgage loans held-for-sale.     
(4) Estimated ratio at March 31, 2019       
(5) Represents a Non-GAAP measure.       
        

 

Sandy Spring Bancorp, Inc. and Subsidiaries    
RECONCILIATION TABLE - UNAUDITED    
     
  Three Months Ended
  March 31,
(Dollars in thousands)  2019   2018 
Pre-tax pre-provision pre-merger income:    
Net income $   30,317   $  21,665 
  Plus non-GAAP adjustment:    
  Merger expenses    -      8,958 
  Income taxes    9,338      6,706 
  Provision (credit) for loan losses    (128)    1,997 
Pre-tax pre-provision pre-merger income $   39,527   $  39,326 
     
Efficiency ratio - GAAP basis:    
Non-interest expenses  $   44,192   $  49,641 
     
Net interest income plus non-interest income $   83,719   $  80,009 
     
Efficiency ratio - GAAP basis  52.79%  62.04%
     
     
Efficiency ratio - Non-GAAP basis:    
Non-interest expenses  $   44,192   $  49,641 
  Less non-GAAP adjustment:    
  Amortization of intangible assets    491      541 
  Merger expenses    -      8,958 
Non-interest expenses -  as adjusted $   43,701   $  40,142 
     
Net interest income plus non-interest income  $   83,719   $  80,009 
  Plus non-GAAP adjustment:    
  Tax-equivalent income    1,241      1,085 
  Less non-GAAP adjustments:    
  Securities gains    -      63 
Net interest income plus non-interest income - as adjusted $   84,960   $  81,031 
     
Efficiency ratio - Non-GAAP basis  51.44%  49.54%
     
Supplemental Non-GAAP Performance Measurements:    
Net income - GAAP $   30,317   $  21,665 
  Add: Merger expenses - net of tax    -      6,617 
Net income - Non-GAAP $   30,317   $  28,283 
     
  Average fully diluted shares    35,806,459      35,683,542 
  Diluted net income per share - GAAP $   0.85   $  0.61 
  Diluted net income per share - Non-GAAP $   0.85   $  0.79 
     
Tangible common equity ratio:    
Total stockholders' equity $   1,095,848   $  1,014,608 
Accumulated other comprehensive loss    9,050      17,618 
Goodwill    (347,149)    (342,907)
Other intangible assets, net    (9,297)    (11,408)
Tangible common equity $   748,452   $  677,911 
     
Total assets $   8,327,900   $  7,894,918 
Goodwill    (347,149)    (342,907)
Other intangible assets, net    (9,297)    (11,408)
Tangible assets $   7,971,454   $  7,540,603 
     
Tangible common equity ratio  9.39%  8.99%
     
Outstanding common shares    35,557,110      35,463,269 
Tangible book value per common share $   21.05   $  19.12 
     

 

Sandy Spring Bancorp, Inc. and Subsidiaries      
CONDENSED CONSOLIDATED STATEMENTS OF CONDITION  - UNAUDITED      
       
  March 31, December 31, March 31,
(Dollars in thousands)  2019   2018   2018 
Assets      
  Cash and due from banks $   67,282   $  67,014  $  64,064 
  Federal funds sold    481      609     1,407 
  Interest-bearing deposits with banks    65,886      33,858     153,948 
  Cash and cash equivalents    133,649      101,481     219,419 
  Residential mortgage loans held for sale (at fair value)     24,998      22,773     28,486 
  Investments available-for-sale (at fair value)    926,530      937,335     977,224 
  Other equity securities    60,769      73,389     63,115 
  Total loans    6,569,990      6,571,634     6,061,551 
  Less: allowance for loan losses    (53,089)    (53,486)    (46,931)
  Net loans    6,516,901      6,518,148     6,014,620 
  Premises and equipment, net    61,003      61,942     60,352 
  Other real estate owned    1,410      1,584     2,761 
  Accrued interest receivable    26,182      24,609     22,383 
  Goodwill    347,149      347,149     342,907 
  Other intangible assets, net     9,297      9,788     11,408 
  Other assets    220,012      145,074     152,243 
Total assets $   8,327,900   $  8,243,272  $  7,894,918 
       
Liabilities      
  Noninterest-bearing deposits $   1,813,708   $  1,750,319  $  1,767,523 
  Interest-bearing deposits    4,410,815      4,164,561     3,859,683 
  Total deposits    6,224,523      5,914,880     5,627,206 
  Securities sold under retail repurchase agreements and federal funds purchased    122,626      327,429     149,323 
  Advances from FHLB    726,278      848,611     1,011,109 
  Subordinated debentures    37,389      37,425     37,530 
  Accrued interest payable and other liabilities    121,236      47,024     55,142 
  Total liabilities    7,232,052      7,175,369     6,880,310 
       
Stockholders' Equity      
  Common stock -- par value $1.00; shares authorized 100,000,000; shares issued and outstanding 35,557,110,       
  35,530,734 and 35,463,269 at March 31, 2019, December 31, 2018 and March 31, 2018, respectively    35,557      35,531     35,463 
  Additional paid in capital    607,479      606,573     604,399 
  Retained earnings    461,862      441,553     392,364 
  Accumulated other comprehensive loss    (9,050)    (15,754)    (17,618)
  Total stockholders' equity    1,095,848      1,067,903     1,014,608 
Total liabilities and stockholders' equity $   8,327,900   $  8,243,272  $  7,894,918 
       

 

Sandy Spring Bancorp, Inc. and Subsidiaries    
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED  
     
  Three Months Ended
 March 31,
(Dollars in thousands, except per share data)  2019   2018
Interest Income:    
 Interest and fees on loans $   80,397   $  67,592
 Interest on loans held for sale    192      368
 Interest on deposits with banks    194      357
 Interest and dividends on investment securities:    
  Taxable    5,685      5,102
  Exempt from federal income taxes    1,710      2,072
 Interest on federal funds sold    5      13
  Total interest income    88,183      75,504
Interest Expense:    
Interest on deposits    14,480      6,959
Interest on retail repurchase agreements and federal funds purchased    398      108
Interest on advances from FHLB    6,064      5,078
Interest on subordinated debt    491      468
  Total interest expense    21,433      12,613
Net interest income    66,750      62,891
Provision (credit) for loan losses    (128)    1,997
  Net interest income after provision for loan losses    66,878      60,894
Non-interest Income:    
 Investment securities gains    -      63
 Service charges on deposit accounts    2,307      2,259
 Mortgage banking activities    2,863      2,207
 Wealth management income    5,236      5,061
 Insurance agency commissions    1,900      1,824
 Income from bank owned life insurance    1,189      2,331
 Bank card fees    1,252      1,370
 Other income    2,222      2,003
  Total non-interest income    16,969      17,118
Non-interest Expenses:    
 Salaries and employee benefits    25,976      23,912
 Occupancy expense of premises    5,231      4,942
 Equipment expenses    2,576      2,225
 Marketing    943      1,148
 Outside data services    1,778      1,397
 FDIC insurance    1,136      1,193
 Amortization of intangible assets    491      541
 Merger expenses    -      8,958
 Professional fees and services    1,245      1,040
 Other expenses    4,816      4,285
  Total non-interest expenses    44,192      49,641
Income before income taxes    39,655      28,371
Income tax expense    9,338      6,706
  Net income $   30,317   $  21,665
     
Net Income Per Share Amounts:    
Basic net income per share $   0.85   $  0.61
Diluted net income per share $   0.85   $  0.61
Dividends declared per share $   0.28   $  0.26
     

 

           
Sandy Spring Bancorp, Inc. and Subsidiaries          
HISTORICAL TRENDS - QUARTERLY FINANCIAL DATA - UNAUDITED        
           
   2019   2018 
(Dollars in thousands, except per share data) Q1 Q4 Q3 Q2 Q1
Profitability for the Quarter:          
Tax-equivalent interest income $   89,424   $  86,839  $  85,595  $  79,774  $  76,589 
Interest expense    21,433      19,462     16,783     14,779     12,613 
Tax-equivalent net interest income    67,991      67,377     68,812     64,995     63,976 
  Tax-equivalent adjustment    1,241      1,232     1,221     1,177     1,085 
Provision (credit) for loan losses    (128)    3,403     1,890     1,733     1,997 
Non-interest income    16,969      14,030     15,033     14,868     17,118 
Non-interest expenses    44,192      42,667     42,393     45,082     49,641 
Income before income taxes    39,655      34,105     38,341     31,871     28,371 
Income tax expense     9,338      8,539     9,107     7,472     6,706 
Net income  $   30,317   $  25,566  $  29,234  $  24,399  $  21,665 
Financial Performance:          
Pre-tax pre-provision pre-merger income $   39,527   $  37,508  $  40,811  $  35,832  $  39,326 
Return on average assets  1.49%  1.25%  1.45%  1.23%  1.12%
Return on average common equity  11.46%  9.70%  11.26%  9.66%  8.70%
Net interest margin  3.60%  3.57%  3.71%  3.56%  3.58%
Efficiency ratio - GAAP basis (1)  52.79%  53.22%  51.31%  57.29%  62.04%
Efficiency ratio - Non-GAAP basis (1)  51.44%  51.78%  49.27%  52.98%  49.54%
Per Share Data:          
Basic net income per share $   0.85   $  0.72  $  0.82  $  0.68  $  0.61 
Diluted net income per share $   0.85   $  0.72  $  0.82  $  0.68  $  0.61 
Average fully diluted shares  35,806,459    35,747,478   35,744,085   35,743,927   35,683,542 
Dividends declared per common share $   0.28   $  0.28  $  0.28  $  0.28  $  0.26 
Non-interest Income:          
Securities gains $   -   $  45  $  82  $  -  $  63 
Service charges on deposit accounts    2,307      2,459     2,316     2,290     2,259 
Mortgage banking activities    2,863      1,130     1,672     2,064     2,207 
Wealth management income    5,236      5,492     5,344     5,387     5,061 
Insurance agency commissions    1,900      1,138     2,016     1,180     1,824 
Income from bank owned life insurance    1,189      663     663     670     2,331 
Bank card fees    1,252      1,368     1,436     1,393     1,370 
Other income    2,222      1,735     1,504     1,884     2,003 
  Total Non-interest Income $   16,969   $  14,030  $  15,033  $  14,868  $  17,118 
Non-interest Expense:          
Salaries and employee benefits $   25,976   $  23,934  $  24,488  $  24,664  $  23,912 
Occupancy expense of premises    5,231      4,413     4,355     4,642     4,942 
Equipment expenses    2,576      2,426     2,441     2,243     2,225 
Marketing    943      1,061     770     945     1,148 
Outside data services    1,778      1,763     1,736     1,707     1,397 
FDIC insurance    1,136      1,255     1,257     1,390     1,193 
Amortization of intangible assets    491      540     540     541     541 
Merger expenses    -      -     580     2,228     8,958 
Professional fees and services    1,245      1,966     1,351     1,699     1,040 
Other expenses    4,816      5,309     4,875     5,023     4,285 
  Total Non-interest Expense $   44,192   $  42,667  $  42,393  $  45,082  $  49,641 
           
(1) The efficiency ratio - GAAP basis is non-interest expenses 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 and merger expenses from non-interest expense, securities gains from non-interest income
  and adds the tax-equivalent adjustment to net interest income.  See the Reconciliation Table included with these Financial Highlights.   
           

 

Sandy Spring Bancorp, Inc. and Subsidiaries           
HISTORICAL TRENDS - QUARTERLY FINANCIAL DATA - UNAUDITED         
            
   2019   2018  
(Dollars in thousands) Q1 Q4 Q3 Q2 Q1 
Balance Sheets at Quarter End:           
Residential mortgage loans $   1,249,968   $  1,228,247  $  1,181,427  $  1,106,674  $  992,287  
Residential construction loans    176,388    186,785   188,779   197,372   215,445  
Commercial AD&C loans    688,939    681,201   631,589   609,266   564,871  
Commercial investor real estate loans    1,962,879    1,958,395   1,924,397   1,923,827   1,928,439  
Commercial owner occupied real estate loans    1,216,713    1,202,903   1,201,673   1,184,421   1,174,739  
Commercial business loans    769,660    796,264   738,083   702,939   652,797  
Consumer loans  505,443    517,839   523,011   525,574   532,973  
  Total loans  6,569,990    6,571,634   6,388,959   6,250,073   6,061,551  
Allowance for loan losses  (53,089)  (53,486)  (50,409)  (48,493)  (46,931) 
Loans held for sale  24,998    22,773   31,581   40,000   28,486  
Investment securities  987,299    1,010,724   992,797   1,017,274   1,040,339  
Interest-earning assets  7,648,654    7,639,598   7,428,534   7,532,664   7,285,731  
Total assets  8,327,900    8,243,272   8,034,565   8,152,600   7,894,918  
Noninterest-bearing demand deposits  1,813,708    1,750,319   1,902,537   1,910,690   1,767,523  
Total deposits  6,224,523    5,914,880   5,898,394   5,837,826   5,627,206  
Customer repurchase agreements    122,626    137,429   142,669   139,647   149,323  
Total interest-bearing liabilities  5,297,108    5,378,026   5,042,431   5,168,055   5,057,645  
Total stockholders' equity  1,095,848    1,067,903   1,042,716   1,026,349   1,014,608  
Quarterly Average Balance Sheets:           
Residential mortgage loans $   1,230,319   $  1,188,135  $  1,122,946  $  1,034,062  $  1,117,478  
Residential construction loans    189,720      202,710     215,578     223,171     193,327  
Commercial AD&C loans    676,205      647,115     632,354     576,076     582,876  
Commercial investor real estate loans    1,964,699      1,936,936     1,905,427     1,924,759     1,988,340  
Commercial owner occupied real estate loans    1,207,799      1,196,506     1,190,865     1,184,409     940,065  
Commercial business loans    780,318      751,754     700,791     666,280     657,372  
Consumer loans    515,644      522,453     524,605     531,965     538,198  
  Total loans    6,564,704      6,445,609     6,292,566     6,140,722     6,017,656  
Loans held for sale    17,846    21,923   29,939   25,403   35,768  
Investment securities  1,010,940    986,146   996,365   1,028,306   1,062,325  
Interest-earning assets  7,627,187    7,495,338   7,372,536   7,311,272   7,212,878  
Total assets  8,258,116    8,104,916   7,986,525   7,926,735   7,841,611  
Noninterest-bearing demand deposits  1,682,720    1,766,672   1,822,931   1,796,644   1,651,258  
Total deposits  5,952,942    5,822,580   5,783,992   5,657,420   5,489,715  
Customer repurchase agreements    129,059      146,637     139,809     148,539     136,694  
Total interest-bearing liabilities  5,403,946    5,230,254   5,076,717   5,058,016   5,116,904  
Total stockholders' equity  1,073,291    1,045,378   1,030,167   1,013,081   1,010,106  
Financial Measures:           
Average equity to average assets  13.00%  12.90%  12.90%  12.78%  12.88% 
Investment securities to earning assets  12.91%  13.23%  13.36%  13.50%  14.28% 
Loans to earning assets  85.90%  86.02%  86.01%  82.97%  83.20% 
Loans to assets  78.89%  79.72%  79.52%  76.66%  76.78% 
Loans to deposits  105.55%  111.10%  108.32%  107.06%  107.72% 
Capital Measures:           
Tier 1 leverage  (1)  9.61%  9.50%  9.46%  9.27%  9.21% 
Tier 1 capital to risk-weighted assets  (1)  11.35%  11.06%  11.18%  11.01%  11.08% 
Total regulatory capital to risk-weighted assets  (1)  12.54%  12.26%  12.38%  12.19%  12.27% 
Common equity tier 1 capital to risk-weighted assets  (1)  11.19%