Sandy Spring Bancorp, Inc. (Nasdaq-SASR), the parent company of
Sandy Spring Bank, reported net income of $24.7 million ($0.55 per
diluted common share) for the quarter ended June 30, 2023,
compared to net income of $51.3 million ($1.14 per diluted common
share) for the first quarter of 2023 and $54.8 million ($1.21 per
diluted common share) for the second quarter of 2022.
Current quarter core earnings were $27.1 million
($0.60 per diluted common share), compared to $52.3 million ($1.16
per diluted common share) for the quarter ended March 31, 2023
and $44.2 million ($0.98 per diluted common share) for the quarter
ended June 30, 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 drivers in the decline of net income and core
earnings compared to the linked quarter were lower net interest
income coupled with higher provision for credit losses and higher
non-interest expense. The provision for credit losses for the
current quarter amounted to $5.1 million compared to a credit to
provision of $21.5 million for the first quarter of 2023 and a
provision of $3.0 million for the second quarter of 2022. The
current quarter's provision was primarily the result of an
individual reserve established on one large commercial real estate
relationship along with the several charge-offs of non-accrual
consumer loans.
“As we have stated all year, we are keenly
focused on growing client relationships and core funding. Despite
the challenging banking environment in the first half of the year,
which resulted in quarterly deposit outflow that was mostly
observed early in the second quarter, our core deposits began to
stabilize in the second half of this quarter. The decrease in
non-interest bearing accounts can be attributed to clients shifting
balances to interest bearing alternatives,” said Daniel J.
Schrider, Chairman, President and CEO of Sandy Spring Bank.
“While the environment is challenging, we remain
committed to taking care of our clients, engaging with our
communities and helping businesses of all sizes in the Greater
Washington region,” Schrider added.
Second Quarter
Highlights
- Total assets at June 30, 2023
remained stable at $14.0 billion compared to $14.1 billion at
March 31, 2023.
- Total loans remained at $11.4
billion at June 30, 2023 compared to March 31, 2023.
Total commercial real estate and business loans were level
quarter-over-quarter, while residential mortgage loans grew 4% due
to the migration of construction loans into the residential
mortgage portfolio.
- Deposits decreased 1% to $11.0
billion at June 30, 2023 compared to $11.1 billion at
March 31, 2023, as noninterest-bearing deposits declined 5%,
primarily in commercial checking accounts, while interest-bearing
deposits were relatively unchanged, as the 41% and 6% respective
growth in savings accounts and time deposits was offset by the 9%
decline in money market accounts.
- Total borrowings in the current
quarter declined by $28.0 million or 2% over amounts at
March 31, 2023. Fed funds purchased and FHLB advances
decreased by $205.0 million and $150.0 million, respectively, which
was partially offset by $300.0 million of borrowings through
Federal Reserve Bank's Bank Term Funding Program.
- Credit quality metrics remained at
low levels during the current quarter compared to the previous
quarter. The ratio of non-performing loans to total loans was 0.44%
at June 30, 2023 compared to 0.41% for the previous quarter
and 0.40% for the quarter ended June 30, 2022.
- Net interest income for the second
quarter of 2023 declined $6.8 million or 7% compared to the
previous quarter and $15.5 million or 15% compared to the second
quarter of 2022. During the recent quarter, the growth in interest
income of $6.8 million or 5% was more than offset by the $13.6
million or 25% increase in interest expense, a result of the
increases in rates paid on deposits and higher borrowing
costs.
- The net interest margin was 2.73% for the second quarter of
2023 compared to 2.99% for the first quarter of 2023 and 3.49% for
the second quarter of 2022. Higher rates paid on interest-bearing
liabilities, driven by higher market rates, competition for
deposits, and customer movement of excess funds out of
noninterest-bearing accounts, outpaced the increase in the yield on
interest-earning assets. Compared to the linked quarter, the rate
paid on interest-bearing liabilities rose 44 basis points, while
the yield on interest-earning assets increased 12 basis points,
resulting in the quarterly margin compression of 26 basis
points.
- Provision for credit losses
directly attributable to the funded loan portfolio for the current
quarter was a charge of $4.5 million compared to a credit to
provision of $18.9 million in the previous quarter and a charge of
$3.0 million in the prior year quarter. During the current quarter,
the provision charge was mainly associated with an individual
reserve established on one large commercial real estate
relationship along with the several charge-offs of non-accrual
consumer loans. In addition, during the current quarter the Company
recorded a provision charge of $0.6 million associated with
unfunded loan commitments.
- Non-interest income for the second
quarter of 2023 increased by 8% or $1.2 million compared to the
linked quarter and declined by 51% or $18.1 million compared to the
prior year quarter. Quarter-over-quarter increase was mainly driven
by higher income from mortgage banking activities, BOLI income and
service charges on deposit accounts. Year-over-year decrease was
primarily a result of the sale of the Company's insurance segment
during the second quarter of 2022 and the associated $16.7 million
gain. Excluding this one-time gain, non-interest income declined by
7% or $1.4 million year-over-year due to lower insurance commission
income as a result of the aforementioned sale and lower bank card
fee income due to regulatory restrictions on transaction fees that
became effective for the Company in the second half of 2022.
- Non-interest expense for the second
quarter of 2023 increased $2.8 million or 4% compared to the first
quarter of 2023 and $4.1 million or 6% compared to the prior year
quarter. The current quarter's increase was mainly due to a higher
compensation expense driven by $1.9 million of severance related
expenses associated with staffing adjustments as a part of the
broader cost control initiatives implemented by management during
the current year.
- Return on average assets (“ROA”)
for the quarter ended June 30, 2023 was 0.70% and return on
average tangible common equity (“ROTCE”) was 8.93% compared to
1.49% and 19.10%, respectively, for the first quarter of 2023 and
1.69% and 20.83%, respectively, for the second quarter of 2022. On
a non-GAAP basis, the current quarter's core ROA was 0.77% and core
ROTCE was 9.43% compared to 1.52% and 19.11%, respectively, for the
previous quarter and 1.37% and 16.49%, respectively, for the second
quarter of 2022.
- The GAAP efficiency ratio was
64.22% for the second quarter of 2023, compared to 58.55% for the
first quarter of 2023 and 46.03% for the second quarter of 2022.
The non-GAAP efficiency ratio was 60.68% for the second quarter of
2023 compared to 56.87% for the first quarter of 2023 and 49.79%
for the prior year quarter. The increase in both the GAAP and
non-GAAP efficiency ratios (reflecting a decrease in efficiency) in
the current quarter compared to the previous quarter and the second
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 June 30,
2023, as compared to $14.1 billion at March 31, 2023.
Diminished loan demand coupled with low payoff activity during the
current quarter resulted in total loans remaining relatively
unchanged at $11.4 billion as of June 30, 2023. Total
commercial real estate and business loans declined by $50.8 million
or 1%, while total mortgage and consumer loans grew by $25.2
million or 1%. Overall, the loan portfolio mix stayed relatively
unchanged compared to the previous quarter.
Deposits decreased $117.1 million or 1% to $11.0
billion at June 30, 2023 compared to $11.1 billion at
March 31, 2023. During this period total noninterest-bearing
deposits declined $148.8 million or 5%, primarily in commercial
checking accounts, while the level of interest-bearing deposits
remained steady. During the current quarter, savings accounts and
time deposits grew 41% and 6%, respectively, while money market
accounts declined by 9%. Quarterly deposit outflow was mostly
observed early in the current quarter and stabilized during May and
June. Core deposits, which exclude brokered relationships,
represented 88% of the total deposits at the end of the current and
previous quarter, respectively, reflecting the stability of the
core deposit base. Total uninsured deposits at June 30, 2023
were approximately 30% of the total deposits. The Company offers
its customers reciprocal deposit arrangements, which provide FDIC
deposit insurance for accounts that would otherwise exceed deposit
insurance limits. During the quarter ended June 30, 2023,
balances in the Company's reciprocal deposit accounts increased by
$230.0 million.
Total borrowings declined by $28.0 million or 2%
at June 30, 2023 as compared to the previous quarter, driven
by a $205.0 million and $150.0 million reductions in fed funds
purchased and FHLB advances, respectively, partially offset by
$300.0 million of borrowings through the Federal Reserve Bank's
Bank Term Funding Program. At June 30, 2023, contingent
liquidity, which consists of available FHLB borrowings, available
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 $4.4 billion or 132% of uninsured
deposits. In addition, the Company also had $1.0 billion in
available fed funds, which provided total coverage of 163% of
uninsured deposits.
The tangible common equity ratio increased to
8.51% of tangible assets at June 30, 2023, compared to 8.40%
at March 31, 2023. This increase reflected the impact of
declining tangible assets while tangible common equity remained
relatively unchanged quarter-over-quarter, as net retained earnings
were offset by higher unrealized losses on available-for-sale
investment securities.
At June 30, 2023, the Company had a total
risk-based capital ratio of 14.66%, a common equity tier 1
risk-based capital ratio of 10.69%, a tier 1 risk-based capital
ratio of 10.69%, and a tier 1 leverage ratio of 9.42%. All of these
ratios remain well in excess of the mandated minimum regulatory
requirements.
Non-performing loans include non-accrual loans
and accruing loans 90 days or more past due. Overall credit quality
remained stable at June 30, 2023 compared March 31, 2023,
as the ratio of non-performing loans to total loans was 0.44%
compared to 0.41%. These levels of non-performing loans compare to
0.40% for the prior year quarter and continue to indicate stable
credit quality during a period of economic uncertainty. At
June 30, 2023, non-performing loans totaled $49.5 million,
compared to $47.2 million at March 31, 2023 and
$43.5 million at June 30, 2022. Total net charge-offs for
the current quarter amounted to $1.8 million compared to $0.3
million in net recoveries for the first quarter of 2023 and
insignificant net charge-offs for the second quarter of 2022. The
current quarter's net charge-offs occurred within the consumer loan
portfolio due to the elimination of several non-accrual loans.
At June 30, 2023, the allowance for credit
losses was $120.3 million or 1.06% of outstanding loans and
243% of non-performing loans, compared to $117.6 million or
1.03% of outstanding loans and 249% of non-performing loans at the
end of the previous quarter and $113.7 million or 1.05% of
outstanding loans and 261% of non-performing loans at the end of
the second quarter of 2022. The increase in the allowance for the
current quarter compared to the previous quarter reflects mainly an
individual reserve recorded on a single commercial real estate
relationship. A majority of the other assumptions within the
allowance for credit losses were relatively unchanged at
June 30, 2023 compared to March 31, 2023.
Income Statement Review
Quarterly Results
Net income was $24.7 million ($0.55 per diluted
common share) for the three months ended June 30, 2023
compared to $51.3 million ($1.14 per diluted common share) for the
three months ended March 31, 2023 and $54.8 million ($1.21 per
diluted common share) for the prior year quarter. Current quarter's
core earnings were $27.1 million ($0.60 per diluted common share),
compared to $52.3 million ($1.16 per diluted common share) for the
previous quarter and $44.2 million ($0.98 per diluted common share)
for the quarter ended June 30, 2022. The decline in the
current quarter's net income and core earnings compared to the
previous quarter was the result of lower net interest income
coupled with higher provision for credit losses and non-interest
expense. Year-over-year decline in quarterly net income was mainly
attributable to a $16.7 million gain earned during the prior year
quarter associated with the sale of the Company's insurance
segment. Excluding this one-time gain, the decrease in net income
was due to lower net interest income and non-interest income along
with higher non-interest expense.
Net interest income for the second quarter of
2023 decreased $6.8 million or 7% compared to the previous quarter
and $15.5 million or 15% compared to the second 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. During the past
twelve months, loan growth coupled with the rising interest rate
environment was primarily responsible for a $44.2 million increase
in interest income. This growth in interest income was more than
offset by the $59.7 million growth in interest expense as funding
costs have also risen in response to the rising rate environment
and significant competition for deposits. Interest income growth
occurred in all categories of commercial loans and, to a lesser
degree, in residential mortgage loans, consumer loans and
investment securities income. Interest expense grew primarily due
to time and money market deposits, as well as the higher cost of
borrowings in the current year period compared to the same period
of the prior year.
The net interest margin was 2.73% for the second
quarter of 2023 compared to 2.99% for the first quarter of 2023 and
3.49% for the second quarter of 2022. The contraction of the net
interest margin for the current quarter was due to the higher rate
paid on interest-bearing liabilities, which outpaced the increase
in the yield on interest-earning assets. The overall rate and yield
increases were driven by the multiple federal funds rate increases
that occurred over the preceding twelve months coupled with the
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, while the
yield on interest-earning assets increased 100 basis points, while
the rate paid on interest-bearing liabilities rose 250 basis points
resulting in the margin compression of 76 basis points.
The total provision for credit losses was $5.1
million for the second quarter of 2023 compared to a credit to
provision of $21.5 million for the previous quarter and a provision
of $3.0 million for the second quarter of 2022. The provision for
credit losses directly attributable to the funded loan portfolio
was $4.5 million for the current quarter compared to a credit to
the provision of $18.9 million for the first quarter of 2023 and
the prior year quarter’s provision of $3.0 million. The current
quarter's provision mainly reflects an individual reserve
established on a single large commercial real estate relationship
along with the several charge-offs of non-accrual consumer
loans.
Non-interest income for the second quarter of
2023 increased by 8% or $1.2 million compared to the linked quarter
and declined by 51% or $18.1 million compared to the prior year
quarter. The current quarter's increase in non-interest income as
compared to the previous quarter was mainly driven by higher income
from mortgage banking activities, BOLI mortality-related income and
service charges on deposit accounts. Year-over-year decrease was
primarily a result of a sale of the Company's insurance segment
during the second quarter of 2022 and the associated $16.7 million
gain on sale. Excluding this one-time gain on sale, non-interest
income declined by 7% or $1.4 million from the prior year quarter
due to insurance commissions income as a result of the
aforementioned sale and lower bank card income due to regulatory
restrictions on transaction fees.
Non-interest expense for the second quarter of
2023 increased $2.8 million or 4% compared to the first quarter of
2023 and $4.1 million or 6% compared to the second quarter of 2022.
The quarterly increase in non-interest expense is mainly
attributable to a higher compensation and benefits costs associated
with $1.9 million of severance expenses related to staffing
adjustments made during the current quarter as a part of the
broader cost control initiatives implemented by management during
the current year. Higher non-interest expense for the current
quarter, as compared to the prior year quarter, was due to higher
FDIC insurance expense, a result of the two basis points increase
in the assessment rate for all banks that became effective in 2023,
higher professional and service fees related to the Company's
investments in technology projects, and higher marketing expense
associated with targeted advertising campaigns aimed at growing
deposit relationships.
For the second quarter of 2023, the GAAP
efficiency ratio was 64.22% compared to 58.55% for the first
quarter of 2023 and 46.03% for the second quarter of 2022. The GAAP
efficiency ratio rose from the prior year quarter primarily the
result of the 24% decrease in GAAP revenue in combination with the
6% increase in GAAP non-interest expense. The non-GAAP efficiency
ratio was 60.68% for the current quarter as compared to 56.87% for
the first quarter of 2023 and 49.79% for the second quarter of
2022. The increase in the non-GAAP efficiency ratio (reflecting a
decrease in efficiency) from the second quarter of the prior year
to the current year quarter was primarily the result of the 13%
decline in non-GAAP revenue, while non-GAAP expenses rose 6%.
ROA for the quarter ended June 30, 2023 was
0.70% and ROTCE was 8.93% compared to 1.49% and 19.10%,
respectively, for the first quarter of 2023 and 1.69% and 20.83%,
respectively, for the second quarter of 2022. On a non-GAAP basis,
the current quarter's core ROA was 0.77% and core ROTCE was 9.43%
compared to 1.52% and 19.11% for the first quarter of 2023 and
1.37% and 16.49%, respectively, for the second quarter of 2022.
Year-to-Date Results
The Company recorded net income of $76.0 million
for the six months ended June 30, 2023 compared to net income
of $98.7 million for the prior year. Core earnings were $79.4
million for the six months ended June 30, 2023 compared to
$89.3 million for the prior year. Year-to-date net income declined
as a result of lower net interest income, as the growth in interest
expense exceeded the increase in interest income, a decline in
non-interest income and higher non-interest expense. These
contributors to the decline in net income during the current
year-to-date period, were partially offset by a lower provision for
credit losses as a result of significant credit recorded during the
first quarter of the current year.
For the six months ended June 30, 2023, net
interest income decreased $19.6 million compared to the prior year
as a result of the $109.2 million increase in interest expense,
partially offset by the $89.6 million increase in interest income.
The increase in interest expense was primarily due to the
additional interest expense 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 2.86% for the
six months ended June 30, 2023, compared to 3.49% for the
prior year, primarily as a result of higher funding cost due to the
rising interest rate environment and market competition for
deposits over the period.
The provision for credit losses for the six
months ended June 30, 2023 amounted to a credit of $16.5
million as compared to a charge of $4.7 million for 2022. The
significant credit to the provision for the six months ended
June 30, 2023 was a reflection of the improving regional
forecasted unemployment rate, observed during the early part of the
current year, coupled with the continued strong credit performance
of the loan portfolio.
For the six months ended June 30, 2023,
non-interest income decreased 41% to $33.1 million compared to
$55.8 million for 2022. During the prior year, Company realized a
$16.7 million gain on the sale of its insurance segment. Excluding
the gain, non-interest income decreased 15% or $6.0 million, driven
by a $2.9 million decrease in insurance commissions, a $2.6 million
decrease in bank card fees and a $0.7 million decrease in income
from mortgage banking activities. 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. 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 diminished
as a result of regulatory restrictions on transaction fees
effective in the second half of the prior year. These decreases in
non-interest income year-over-year, were partially offset by a $0.7
million increase in BOLI mortality-related income.
Non-interest expense increased 7% to $135.4
million for the six months ended June 30, 2023, compared to
$127.1 million for 2022. The drivers of the increase in
non-interest expense were a $3.5 million increase in professional
fees, a $1.2 million increase in software expenses, a $0.9 million
increase in compensation and benefits, and a $0.7 million increase
in marketing expense. Year-over-year increases in both professional
fees and software expenses were mainly associated with the
Company's investments in technology and software projects. Increase
in compensation and benefits expense was driven by severance
related expenses associated with staffing adjustments. Increase in
marketing expense over the prior year was due to targeted
advertising campaigns aimed at growing deposit relationships.
For the six months ended June 30, 2023, the
GAAP efficiency ratio was 61.31% compared to 48.30% for the same
period in 2022. The non-GAAP efficiency ratio for the current year
was 58.73% compared to the 49.57% for the prior year. The growth in
the current year’s non-GAAP efficiency ratio compared to the prior
year, indicating a decline in efficiency, was the result of the 10%
decrease in non-GAAP revenue combined with the 6% growth in
non-GAAP non-interest expense.
Explanation of Non-GAAP Financial Measures
This news release contains financial information
and performance measures determined by methods other than in
accordance with generally accepted accounting principles in the
United States (“GAAP”). The Company’s management believes that the
supplemental non-GAAP information provides a better comparison of
period-to-period operating performance. Additionally, the Company
believes this information is utilized by regulators and market
analysts to evaluate a company’s financial condition and,
therefore, such information is useful to investors. Non-GAAP
measures used in this release consist of the following:
- Tangible common equity and related
measures are non-GAAP measures that exclude the impact of goodwill
and other intangible assets.
- The non-GAAP efficiency ratio
excludes amortization of intangible assets, investment securities
gains/(losses), merger, acquisition and disposal expense, gain on
disposal of assets, 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,
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 second 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: 573109. 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 August 8, 2023. A replay of the teleconference
will be available through the same time period by calling
1-866-813-9403 under conference call number 708305.
About Sandy Spring Bancorp, Inc.
Sandy Spring Bancorp, Inc., headquartered in
Olney, Maryland, is the holding company for Sandy Spring Bank, a
premier community bank in the Greater Washington, D.C. region. With
over 50 locations, the bank offers a broad range of commercial and
retail banking, mortgage, private banking, and trust services
throughout Maryland, Virginia, and Washington, D.C. Through its
subsidiaries, Rembert Pendleton Jackson and West Financial
Services, Inc., Sandy Spring Bank also offers a comprehensive menu
of wealth management services.
Category: WebcastSource: Sandy Spring Bancorp,
Inc.Code: SASR-E
For additional information or
questions, please contact:Daniel J. Schrider, Chair, President
& Chief Executive Officer, or Philip J. Mantua, E.V.P. &
Chief Financial OfficerSandy Spring Bancorp 17801 Georgia
AvenueOlney, Maryland 208321-800-399-5919Email:
DSchrider@sandyspringbank.com PMantua@sandyspringbank.com
Website: www.sandyspringbank.com
Media Contact:Jen Schell, Senior Vice President
301-570-8331jschell@sandyspringbank.com
Forward-Looking Statements
Sandy Spring Bancorp’s forward-looking
statements are subject to significant risks and uncertainties that
may cause actual results to differ materially from those in such
statements. These risks and uncertainties include, but are not
limited to, the risks identified in our quarterly and annual
reports and the following: changes in general business and economic
conditions nationally or in the markets that we serve; changes in
consumer and business confidence, investor sentiment, or consumer
spending or savings behavior; changes in the level of inflation;
changes in the demand for loans, deposits and other financial
services that we provide; the possibility that future credit losses
may be higher than currently expected; the impact of the interest
rate environment on our business, financial condition and results
of operations; the impact of compliance with changes in laws,
regulations and regulatory interpretations, including changes in
income taxes; changes in credit ratings assigned to us or our
subsidiaries; the ability to realize benefits and cost savings
from, and limit any unexpected liabilities associated with, any
business combinations; competitive pressures among financial
services companies; the ability to attract, develop and retain
qualified employees; our ability to maintain the security of our
data processing and information technology systems; the impact of
changes in accounting policies, including the introduction of new
accounting standards; the impact of judicial or regulatory
proceedings; the impact of fiscal and governmental policies of the
United States federal government; the impact of health emergencies,
epidemics or pandemics; the effects of climate change; and the
impact of natural disasters, extreme weather events, military
conflict, terrorism or other geopolitical events. Sandy Spring
Bancorp provides greater detail regarding some of these factors in
its Form 10-K for the year ended December 31, 2022, 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 SubsidiariesFINANCIAL
HIGHLIGHTS - UNAUDITED |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months EndedJune 30, |
|
% |
|
Six Months EndedJune 30, |
|
% |
(Dollars in thousands, except per share data) |
|
2023 |
|
2022 |
|
Change |
|
2023 |
|
2022 |
|
Change |
Results of operations: |
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
$ |
90,471 |
|
|
$ |
105,950 |
|
|
(15 |
)% |
|
$ |
187,773 |
|
|
$ |
207,401 |
|
|
(9 |
)% |
Provision/ (credit) for credit losses |
|
|
5,055 |
|
|
|
3,046 |
|
|
66 |
|
|
|
(16,481 |
) |
|
|
4,681 |
|
|
N/M |
|
Non-interest income |
|
|
17,176 |
|
|
|
35,245 |
|
|
(51 |
) |
|
|
33,127 |
|
|
|
55,840 |
|
|
(41 |
) |
Non-interest expense |
|
|
69,136 |
|
|
|
64,991 |
|
|
6 |
|
|
|
135,441 |
|
|
|
127,138 |
|
|
7 |
|
Income before income tax expense |
|
|
33,456 |
|
|
|
73,158 |
|
|
(54 |
) |
|
|
101,940 |
|
|
|
131,422 |
|
|
(22 |
) |
Net income |
|
|
24,745 |
|
|
|
54,800 |
|
|
(55 |
) |
|
|
75,998 |
|
|
|
98,735 |
|
|
(23 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to common shareholders |
|
$ |
24,712 |
|
|
$ |
54,606 |
|
|
(55 |
) |
|
$ |
75,821 |
|
|
$ |
98,259 |
|
|
(23 |
) |
Pre-tax pre-provision net income(1) |
|
$ |
38,511 |
|
|
$ |
76,204 |
|
|
(49 |
) |
|
$ |
85,459 |
|
|
$ |
136,103 |
|
|
(37 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
|
0.70 |
% |
|
|
1.69 |
% |
|
|
|
|
1.09 |
% |
|
|
1.56 |
% |
|
|
Return on average common equity |
|
|
6.46 |
% |
|
|
14.97 |
% |
|
|
|
|
10.12 |
% |
|
|
13.39 |
% |
|
|
Return on average tangible common equity(1) |
|
|
8.93 |
% |
|
|
20.83 |
% |
|
|
|
|
13.88 |
% |
|
|
18.62 |
% |
|
|
Net interest margin |
|
|
2.73 |
% |
|
|
3.49 |
% |
|
|
|
|
2.86 |
% |
|
|
3.49 |
% |
|
|
Efficiency ratio - GAAP basis(2) |
|
|
64.22 |
% |
|
|
46.03 |
% |
|
|
|
|
61.31 |
% |
|
|
48.30 |
% |
|
|
Efficiency ratio - Non-GAAP basis(2) |
|
|
60.68 |
% |
|
|
49.79 |
% |
|
|
|
|
58.73 |
% |
|
|
49.57 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share
data: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income per common share |
|
$ |
0.55 |
|
|
$ |
1.21 |
|
|
(55 |
)% |
|
$ |
1.69 |
|
|
$ |
2.18 |
|
|
(22 |
)% |
Diluted net income per common share |
|
$ |
0.55 |
|
|
$ |
1.21 |
|
|
(55 |
) |
|
$ |
1.69 |
|
|
$ |
2.17 |
|
|
(22 |
) |
Weighted average diluted common shares |
|
|
44,888,759 |
|
|
|
45,111,693 |
|
|
— |
|
|
|
44,876,873 |
|
|
|
45,223,086 |
|
|
(1 |
) |
Dividends declared per share |
|
$ |
0.34 |
|
|
$ |
0.34 |
|
|
— |
|
|
$ |
0.68 |
|
|
$ |
0.68 |
|
|
— |
|
Book value per common share |
|
$ |
34.31 |
|
|
$ |
33.10 |
|
|
4 |
|
|
$ |
34.31 |
|
|
$ |
33.10 |
|
|
4 |
|
Tangible book value per common share(1) |
|
$ |
25.82 |
|
|
$ |
24.45 |
|
|
6 |
|
|
$ |
25.82 |
|
|
$ |
24.45 |
|
|
6 |
|
Outstanding common shares |
|
|
44,862,369 |
|
|
|
44,629,697 |
|
|
1 |
|
|
|
44,862,369 |
|
|
|
44,629,697 |
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial condition at
period-end: |
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities |
|
$ |
1,463,554 |
|
|
$ |
1,595,424 |
|
|
(8 |
)% |
|
$ |
1,463,554 |
|
|
$ |
1,595,424 |
|
|
(8 |
)% |
Loans |
|
|
11,369,639 |
|
|
|
10,786,290 |
|
|
5 |
|
|
|
11,369,639 |
|
|
|
10,786,290 |
|
|
5 |
|
Assets |
|
|
13,994,545 |
|
|
|
13,303,009 |
|
|
5 |
|
|
|
13,994,545 |
|
|
|
13,303,009 |
|
|
5 |
|
Deposits |
|
|
10,958,922 |
|
|
|
10,969,461 |
|
|
— |
|
|
|
10,958,922 |
|
|
|
10,969,461 |
|
|
— |
|
Stockholders' equity |
|
|
1,539,032 |
|
|
|
1,477,169 |
|
|
4 |
|
|
|
1,539,032 |
|
|
|
1,477,169 |
|
|
4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 leverage(3) |
|
|
9.42 |
% |
|
|
9.53 |
% |
|
|
|
|
9.42 |
% |
|
|
9.53 |
% |
|
|
Common equity tier 1 capital to risk-weighted assets(3) |
|
|
10.69 |
% |
|
|
10.42 |
% |
|
|
|
|
10.69 |
% |
|
|
10.42 |
% |
|
|
Tier 1 capital to risk-weighted assets(3) |
|
|
10.69 |
% |
|
|
10.42 |
% |
|
|
|
|
10.69 |
% |
|
|
10.42 |
% |
|
|
Total regulatory capital to risk-weighted assets(3) |
|
|
14.66 |
% |
|
|
14.46 |
% |
|
|
|
|
14.66 |
% |
|
|
14.46 |
% |
|
|
Tangible common equity to tangible assets(4) |
|
|
8.51 |
% |
|
|
8.45 |
% |
|
|
|
|
8.51 |
% |
|
|
8.45 |
% |
|
|
Average equity to average assets |
|
|
10.89 |
% |
|
|
11.30 |
% |
|
|
|
|
10.80 |
% |
|
|
11.63 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit quality
ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses to loans |
|
|
1.06 |
% |
|
|
1.05 |
% |
|
|
|
|
1.06 |
% |
|
|
1.05 |
% |
|
|
Non-performing loans to total loans |
|
|
0.44 |
% |
|
|
0.40 |
% |
|
|
|
|
0.44 |
% |
|
|
0.40 |
% |
|
|
Non-performing assets to total assets |
|
|
0.36 |
% |
|
|
0.33 |
% |
|
|
|
|
0.36 |
% |
|
|
0.33 |
% |
|
|
Allowance for credit losses to non-performing loans |
|
|
243.21 |
% |
|
|
261.44 |
% |
|
|
|
|
243.21 |
% |
|
|
261.44 |
% |
|
|
Annualized net charge-offs/ (recoveries) to average loans(5) |
|
|
0.06 |
% |
|
|
— |
% |
|
|
|
|
0.03 |
% |
|
|
— |
% |
|
|
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 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 June 30, 2023. |
(4) |
|
The tangible common equity to tangible assets ratio is a non-GAAP
ratio that divides assets excluding goodwill and other intangible
assets into stockholders' equity after deducting goodwill and other
intangible assets. See the Reconciliation Table included with these
Financial Highlights. |
(5) |
|
Calculation utilizes average loans, excluding residential mortgage
loans held-for-sale. |
|
|
|
|
Sandy
Spring Bancorp, Inc. and
SubsidiariesRECONCILIATION TABLE - UNAUDITED
(CONTINUED)OPERATING EARNINGS -
METRICS |
|
|
|
|
|
|
|
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
(Dollars in thousands) |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Core earnings (non-GAAP): |
|
|
|
|
|
|
|
|
Net income (GAAP) |
|
$ |
24,745 |
|
|
$ |
54,800 |
|
|
$ |
75,998 |
|
|
$ |
98,735 |
|
Plus/ (less) non-GAAP adjustments
(net of tax)(1): |
|
|
|
|
|
|
|
|
Merger, acquisition and disposal expense |
|
|
— |
|
|
|
793 |
|
|
|
— |
|
|
|
793 |
|
Amortization of intangible assets |
|
|
946 |
|
|
|
1,090 |
|
|
|
1,919 |
|
|
|
2,211 |
|
Severance expense |
|
|
1,445 |
|
|
|
— |
|
|
|
1,445 |
|
|
|
— |
|
Gain on disposal of assets |
|
|
— |
|
|
|
(12,417 |
) |
|
|
— |
|
|
|
(12,417 |
) |
Investment securities gains |
|
|
— |
|
|
|
(28 |
) |
|
|
— |
|
|
|
(34 |
) |
Contingent payment expense |
|
|
— |
|
|
|
— |
|
|
|
27 |
|
|
|
— |
|
Core earnings (Non-GAAP) |
|
$ |
27,136 |
|
|
$ |
44,238 |
|
|
$ |
79,389 |
|
|
$ |
89,288 |
|
|
|
|
|
|
|
|
|
|
Core earnings per diluted
common share (non-GAAP): |
|
|
|
|
|
|
|
|
Weighted average common shares
outstanding - diluted (GAAP) |
|
|
44,888,759 |
|
|
|
45,111,693 |
|
|
|
44,876,873 |
|
|
|
45,223,086 |
|
|
|
|
|
|
|
|
|
|
Earnings per diluted common share
(GAAP) |
|
$ |
0.55 |
|
|
$ |
1.21 |
|
|
$ |
1.69 |
|
|
$ |
2.17 |
|
Core earnings per diluted common
share (non-GAAP) |
|
$ |
0.60 |
|
|
$ |
0.98 |
|
|
$ |
1.77 |
|
|
$ |
1.97 |
|
|
|
|
|
|
|
|
|
|
Core return on average
assets (non-GAAP): |
|
|
|
|
|
|
|
|
Average assets (GAAP) |
|
$ |
14,094,653 |
|
|
$ |
12,991,692 |
|
|
$ |
14,022,364 |
|
|
$ |
12,785,040 |
|
|
|
|
|
|
|
|
|
|
Return on average assets
(GAAP) |
|
|
0.70 |
% |
|
|
1.69 |
% |
|
|
1.09 |
% |
|
|
1.56 |
% |
Core return on average assets
(non-GAAP) |
|
|
0.77 |
% |
|
|
1.37 |
% |
|
|
1.14 |
% |
|
|
1.41 |
% |
|
|
|
|
|
|
|
|
|
Return/ Core return on
average tangible common equity (non- |
|
|
|
|
|
|
|
|
Net Income (GAAP) |
|
$ |
24,745 |
|
|
$ |
54,800 |
|
|
$ |
75,998 |
|
|
$ |
98,735 |
|
Plus: Amortization of intangible
assets (net of tax) |
|
|
946 |
|
|
|
1,090 |
|
|
|
1,919 |
|
|
|
2,211 |
|
Net income before amortization of
intangible assets |
|
$ |
25,691 |
|
|
$ |
55,890 |
|
|
$ |
77,917 |
|
|
$ |
100,946 |
|
|
|
|
|
|
|
|
|
|
Average total stockholders'
equity (GAAP) |
|
$ |
1,535,465 |
|
|
$ |
1,468,036 |
|
|
$ |
1,513,817 |
|
|
$ |
1,487,170 |
|
Average goodwill |
|
|
(363,436 |
) |
|
|
(367,986 |
) |
|
|
(363,436 |
) |
|
|
(369,098 |
) |
Average other intangible assets, net |
|
|
(18,074 |
) |
|
|
(23,801 |
) |
|
|
(18,724 |
) |
|
|
(24,580 |
) |
Average tangible common equity
(non-GAAP) |
|
$ |
1,153,955 |
|
|
$ |
1,076,249 |
|
|
$ |
1,131,657 |
|
|
$ |
1,093,492 |
|
|
|
|
|
|
|
|
|
|
Return on average tangible common
equity (non-GAAP) |
|
|
8.93 |
% |
|
|
20.83 |
% |
|
|
13.88 |
% |
|
|
18.62 |
% |
Core return on average tangible
common equity (non-GAAP) |
|
|
9.43 |
% |
|
|
16.49 |
% |
|
|
14.15 |
% |
|
|
16.47 |
% |
(1) |
|
Tax adjustments have been determined using the combined marginal
federal and state rate of 25.47% and 25.64% for 2023 and 2022,
respectively. |
|
|
|
|
132Sandy
Spring Bancorp, Inc. and
SubsidiariesRECONCILIATION TABLE -
UNAUDITED |
|
|
|
|
|
|
|
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
(Dollars in thousands) |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Pre-tax pre-provision net income: |
|
|
|
|
|
|
|
|
Net income (GAAP) |
|
$ |
24,745 |
|
|
$ |
54,800 |
|
|
$ |
75,998 |
|
|
$ |
98,735 |
|
Plus/ (less) non-GAAP adjustments: |
|
|
|
|
|
|
|
|
Income tax expense |
|
|
8,711 |
|
|
|
18,358 |
|
|
|
25,942 |
|
|
|
32,687 |
|
Provision/ (credit) for credit losses |
|
|
5,055 |
|
|
|
3,046 |
|
|
|
(16,481 |
) |
|
|
4,681 |
|
Pre-tax pre-provision net income
(non-GAAP) |
|
$ |
38,511 |
|
|
$ |
76,204 |
|
|
$ |
85,459 |
|
|
$ |
136,103 |
|
|
|
|
|
|
|
|
|
|
Efficiency ratio
(GAAP): |
|
|
|
|
|
|
|
|
Non-interest expense |
|
$ |
69,136 |
|
|
$ |
64,991 |
|
|
$ |
135,441 |
|
|
$ |
127,138 |
|
|
|
|
|
|
|
|
|
|
Net interest income plus
non-interest income |
|
$ |
107,647 |
|
|
$ |
141,195 |
|
|
$ |
220,900 |
|
|
$ |
263,241 |
|
|
|
|
|
|
|
|
|
|
Efficiency ratio
(GAAP) |
|
|
64.22 |
% |
|
|
46.03 |
% |
|
|
61.31 |
% |
|
|
48.30 |
% |
|
|
|
|
|
|
|
|
|
Efficiency ratio
(Non-GAAP): |
|
|
|
|
|
|
|
|
Non-interest expense |
|
$ |
69,136 |
|
|
$ |
64,991 |
|
|
$ |
135,441 |
|
|
$ |
127,138 |
|
Less non-GAAP adjustments: |
|
|
|
|
|
|
|
|
Amortization of intangible assets |
|
|
1,269 |
|
|
|
1,466 |
|
|
|
2,575 |
|
|
|
2,974 |
|
Merger, acquisition and disposal expense |
|
|
— |
|
|
|
1,067 |
|
|
|
— |
|
|
|
1,067 |
|
Severance expense |
|
|
1,939 |
|
|
|
— |
|
|
|
1,939 |
|
|
|
— |
|
Contingent payment expense |
|
|
— |
|
|
|
— |
|
|
|
36 |
|
|
|
— |
|
Non-interest expense - as
adjusted |
|
$ |
65,928 |
|
|
$ |
62,458 |
|
|
$ |
130,891 |
|
|
$ |
123,097 |
|
|
|
|
|
|
|
|
|
|
Net interest income plus
non-interest income |
|
$ |
107,647 |
|
|
$ |
141,195 |
|
|
$ |
220,900 |
|
|
$ |
263,241 |
|
Plus non-GAAP adjustment: |
|
|
|
|
|
|
|
|
Tax-equivalent income |
|
|
1,006 |
|
|
|
992 |
|
|
|
1,976 |
|
|
|
1,858 |
|
Less/ (plus) non-GAAP adjustment: |
|
|
|
|
|
|
|
|
Investment securities gains |
|
|
— |
|
|
|
38 |
|
|
|
— |
|
|
|
46 |
|
Gain on disposal of assets |
|
|
— |
|
|
|
16,699 |
|
|
|
— |
|
|
|
16,699 |
|
Net interest income plus
non-interest income - as adjusted |
|
$ |
108,653 |
|
|
$ |
125,450 |
|
|
$ |
222,876 |
|
|
$ |
248,354 |
|
|
|
|
|
|
|
|
|
|
Efficiency ratio
(Non-GAAP) |
|
|
60.68 |
% |
|
|
49.79 |
% |
|
|
58.73 |
% |
|
|
49.57 |
% |
|
|
|
|
|
|
|
|
|
Tangible common equity
ratio: |
|
|
|
|
|
|
|
|
Total stockholders' equity |
|
$ |
1,539,032 |
|
|
$ |
1,477,169 |
|
|
$ |
1,539,032 |
|
|
$ |
1,477,169 |
|
Goodwill |
|
|
(363,436 |
) |
|
|
(363,436 |
) |
|
|
(363,436 |
) |
|
|
(363,436 |
) |
Other intangible assets, net |
|
|
(17,280 |
) |
|
|
(22,694 |
) |
|
|
(17,280 |
) |
|
|
(22,694 |
) |
Tangible common equity |
|
$ |
1,158,316 |
|
|
$ |
1,091,039 |
|
|
$ |
1,158,316 |
|
|
$ |
1,091,039 |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
13,994,545 |
|
|
$ |
13,303,009 |
|
|
$ |
13,994,545 |
|
|
$ |
13,303,009 |
|
Goodwill |
|
|
(363,436 |
) |
|
|
(363,436 |
) |
|
|
(363,436 |
) |
|
|
(363,436 |
) |
Other intangible assets, net |
|
|
(17,280 |
) |
|
|
(22,694 |
) |
|
|
(17,280 |
) |
|
|
(22,694 |
) |
Tangible assets |
|
$ |
13,613,829 |
|
|
$ |
12,916,879 |
|
|
$ |
13,613,829 |
|
|
$ |
12,916,879 |
|
|
|
|
|
|
|
|
|
|
Tangible common equity
ratio |
|
|
8.51 |
% |
|
|
8.45 |
% |
|
|
8.51 |
% |
|
|
8.45 |
% |
|
|
|
|
|
|
|
|
|
Outstanding common shares |
|
|
44,862,369 |
|
|
|
44,629,697 |
|
|
|
44,862,369 |
|
|
|
44,629,697 |
|
Tangible book value per common
share |
|
$ |
25.82 |
|
|
$ |
24.45 |
|
|
$ |
25.82 |
|
|
$ |
24.45 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sandy Spring Bancorp, Inc. and
SubsidiariesCONDENSED CONSOLIDATED STATEMENTS OF
CONDITION - UNAUDITED |
|
|
|
|
|
|
|
(Dollars in thousands) |
|
June 30,2023 |
|
December 31,2022 |
|
June 30,2022 |
Assets |
|
|
|
|
|
|
Cash and due from banks |
|
$ |
96,482 |
|
|
$ |
88,152 |
|
|
$ |
84,215 |
|
Federal funds sold |
|
|
240 |
|
|
|
193 |
|
|
|
291 |
|
Interest-bearing deposits with banks |
|
|
333,405 |
|
|
|
103,887 |
|
|
|
136,773 |
|
Cash and cash equivalents |
|
|
430,127 |
|
|
|
192,232 |
|
|
|
221,279 |
|
Residential mortgage loans held for sale (at fair value) |
|
|
21,476 |
|
|
|
11,706 |
|
|
|
23,610 |
|
Investments held-to-maturity (fair values of $208,662, $220,123 and
$250,915 at June 30, 2023, December 31, 2022 and
June 30, 2022, respectively) |
|
|
247,814 |
|
|
|
259,452 |
|
|
|
274,337 |
|
Investments available-for-sale (at fair value) |
|
|
1,143,688 |
|
|
|
1,214,538 |
|
|
|
1,268,823 |
|
Other investments, at cost |
|
|
72,052 |
|
|
|
69,218 |
|
|
|
52,264 |
|
Total loans |
|
|
11,369,639 |
|
|
|
11,396,706 |
|
|
|
10,786,290 |
|
Less: allowance for credit losses - loans |
|
|
(120,287 |
) |
|
|
(136,242 |
) |
|
|
(113,670 |
) |
Net loans |
|
|
11,249,352 |
|
|
|
11,260,464 |
|
|
|
10,672,620 |
|
Premises and equipment, net |
|
|
71,203 |
|
|
|
67,070 |
|
|
|
63,243 |
|
Other real estate owned |
|
|
611 |
|
|
|
645 |
|
|
|
739 |
|
Accrued interest receivable |
|
|
42,388 |
|
|
|
41,172 |
|
|
|
33,459 |
|
Goodwill |
|
|
363,436 |
|
|
|
363,436 |
|
|
|
363,436 |
|
Other intangible assets, net |
|
|
17,280 |
|
|
|
19,855 |
|
|
|
22,694 |
|
Other assets |
|
|
335,118 |
|
|
|
333,331 |
|
|
|
306,505 |
|
Total
assets |
|
$ |
13,994,545 |
|
|
$ |
13,833,119 |
|
|
$ |
13,303,009 |
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
Noninterest-bearing deposits |
|
$ |
3,079,896 |
|
|
$ |
3,673,300 |
|
|
$ |
4,129,440 |
|
Interest-bearing deposits |
|
|
7,879,026 |
|
|
|
7,280,121 |
|
|
|
6,840,021 |
|
Total deposits |
|
|
10,958,922 |
|
|
|
10,953,421 |
|
|
|
10,969,461 |
|
Securities sold under retail repurchase agreements |
|
|
74,510 |
|
|
|
61,967 |
|
|
|
110,744 |
|
Federal funds purchased |
|
|
— |
|
|
|
260,000 |
|
|
|
75,000 |
|
Federal Reserve Bank borrowings |
|
|
300,000 |
|
|
|
— |
|
|
|
— |
|
Advances from FHLB |
|
|
600,000 |
|
|
|
550,000 |
|
|
|
175,000 |
|
Subordinated debt |
|
|
370,504 |
|
|
|
370,205 |
|
|
|
369,906 |
|
Total borrowings |
|
|
1,345,014 |
|
|
|
1,242,172 |
|
|
|
730,650 |
|
Accrued interest payable and other liabilities |
|
|
151,577 |
|
|
|
153,758 |
|
|
|
125,729 |
|
Total liabilities |
|
|
12,455,513 |
|
|
|
12,349,351 |
|
|
|
11,825,840 |
|
|
|
|
|
|
|
|
Stockholders'
equity |
|
|
|
|
|
|
Common stock -- par value $1.00; shares authorized 100,000,000;
shares issued and outstanding 44,862,369, 44,657,054 and 44,629,697
at June 30, 2023, December 31, 2022 and June 30,
2022, respectively |
|
|
44,862 |
|
|
|
44,657 |
|
|
|
44,630 |
|
Additional paid in capital |
|
|
737,740 |
|
|
|
734,273 |
|
|
|
730,285 |
|
Retained earnings |
|
|
882,055 |
|
|
|
836,789 |
|
|
|
799,707 |
|
Accumulated other comprehensive loss |
|
|
(125,625 |
) |
|
|
(131,951 |
) |
|
|
(97,453 |
) |
Total stockholders' equity |
|
|
1,539,032 |
|
|
|
1,483,768 |
|
|
|
1,477,169 |
|
Total liabilities and
stockholders' equity |
|
$ |
13,994,545 |
|
|
$ |
13,833,119 |
|
|
$ |
13,303,009 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sandy
Spring Bancorp, Inc. and SubsidiariesCONDENSED
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED |
|
|
|
|
|
|
|
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
(Dollars in thousands, except per share data) |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Interest income: |
|
|
|
|
|
|
|
|
Interest and fees on loans |
|
$ |
144,274 |
|
|
$ |
106,221 |
|
|
$ |
284,001 |
|
|
$ |
205,715 |
|
Interest on loans held for sale |
|
|
307 |
|
|
|
145 |
|
|
|
459 |
|
|
|
343 |
|
Interest on deposits with banks |
|
|
4,922 |
|
|
|
358 |
|
|
|
7,608 |
|
|
|
471 |
|
Interest and dividend income on investment securities: |
|
|
|
|
|
|
|
|
Taxable |
|
|
6,848 |
|
|
|
4,630 |
|
|
|
13,856 |
|
|
|
8,737 |
|
Tax-advantaged |
|
|
1,795 |
|
|
|
2,554 |
|
|
|
3,565 |
|
|
|
4,678 |
|
Interest on federal funds sold |
|
|
4 |
|
|
|
1 |
|
|
|
8 |
|
|
|
1 |
|
Total interest income |
|
|
158,150 |
|
|
|
113,909 |
|
|
|
309,497 |
|
|
|
219,945 |
|
Interest
expense: |
|
|
|
|
|
|
|
|
Interest on deposits |
|
|
51,325 |
|
|
|
3,795 |
|
|
|
92,113 |
|
|
|
6,088 |
|
Interest on retail repurchase agreements and federal funds
purchased |
|
|
4,191 |
|
|
|
201 |
|
|
|
6,295 |
|
|
|
255 |
|
Interest on advances from FHLB |
|
|
8,216 |
|
|
|
17 |
|
|
|
15,423 |
|
|
|
17 |
|
Interest on subordinated debt |
|
|
3,947 |
|
|
|
3,946 |
|
|
|
7,893 |
|
|
|
6,184 |
|
Total interest expense |
|
|
67,679 |
|
|
|
7,959 |
|
|
|
121,724 |
|
|
|
12,544 |
|
Net interest
income |
|
|
90,471 |
|
|
|
105,950 |
|
|
|
187,773 |
|
|
|
207,401 |
|
Provision/ (credit) for credit
losses |
|
|
5,055 |
|
|
|
3,046 |
|
|
|
(16,481 |
) |
|
|
4,681 |
|
Net interest income after provision/ (credit) for credit
losses |
|
|
85,416 |
|
|
|
102,904 |
|
|
|
204,254 |
|
|
|
202,720 |
|
Non-interest
income: |
|
|
|
|
|
|
|
|
Investment securities gains |
|
|
— |
|
|
|
38 |
|
|
|
— |
|
|
|
46 |
|
Gain on disposal of assets |
|
|
— |
|
|
|
16,699 |
|
|
|
— |
|
|
|
16,699 |
|
Service charges on deposit accounts |
|
|
2,606 |
|
|
|
2,467 |
|
|
|
4,994 |
|
|
|
4,793 |
|
Mortgage banking activities |
|
|
1,817 |
|
|
|
1,483 |
|
|
|
3,062 |
|
|
|
3,781 |
|
Wealth management income |
|
|
9,031 |
|
|
|
9,098 |
|
|
|
18,023 |
|
|
|
18,435 |
|
Insurance agency commissions |
|
|
— |
|
|
|
812 |
|
|
|
— |
|
|
|
2,927 |
|
Income from bank owned life insurance |
|
|
1,251 |
|
|
|
703 |
|
|
|
2,158 |
|
|
|
1,498 |
|
Bank card fees |
|
|
447 |
|
|
|
1,810 |
|
|
|
865 |
|
|
|
3,478 |
|
Other income |
|
|
2,024 |
|
|
|
2,135 |
|
|
|
4,025 |
|
|
|
4,183 |
|
Total non-interest income |
|
|
17,176 |
|
|
|
35,245 |
|
|
|
33,127 |
|
|
|
55,840 |
|
Non-interest
expense: |
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
40,931 |
|
|
|
39,550 |
|
|
|
79,857 |
|
|
|
78,923 |
|
Occupancy expense of premises |
|
|
4,764 |
|
|
|
4,734 |
|
|
|
9,611 |
|
|
|
9,768 |
|
Equipment expenses |
|
|
3,760 |
|
|
|
3,559 |
|
|
|
7,877 |
|
|
|
7,095 |
|
Marketing |
|
|
1,589 |
|
|
|
1,280 |
|
|
|
3,132 |
|
|
|
2,473 |
|
Outside data services |
|
|
2,853 |
|
|
|
2,564 |
|
|
|
5,367 |
|
|
|
4,983 |
|
FDIC insurance |
|
|
2,375 |
|
|
|
1,078 |
|
|
|
4,513 |
|
|
|
2,062 |
|
Amortization of intangible assets |
|
|
1,269 |
|
|
|
1,466 |
|
|
|
2,575 |
|
|
|
2,974 |
|
Merger, acquisition and disposal expense |
|
|
— |
|
|
|
1,067 |
|
|
|
— |
|
|
|
1,067 |
|
Professional fees and services |
|
|
4,161 |
|
|
|
2,372 |
|
|
|
7,845 |
|
|
|
4,389 |
|
Other expenses |
|
|
7,434 |
|
|
|
7,321 |
|
|
|
14,664 |
|
|
|
13,404 |
|
Total non-interest expense |
|
|
69,136 |
|
|
|
64,991 |
|
|
|
135,441 |
|
|
|
127,138 |
|
Income before income tax
expense |
|
|
33,456 |
|
|
|
73,158 |
|
|
|
101,940 |
|
|
|
131,422 |
|
Income tax expense |
|
|
8,711 |
|
|
|
18,358 |
|
|
|
25,942 |
|
|
|
32,687 |
|
Net income |
|
$ |
24,745 |
|
|
$ |
54,800 |
|
|
$ |
75,998 |
|
|
$ |
98,735 |
|
|
|
|
|
|
|
|
|
|
Net income per share
amounts: |
|
|
|
|
|
|
|
|
Basic net income per common share |
|
$ |
0.55 |
|
|
$ |
1.21 |
|
|
$ |
1.69 |
|
|
$ |
2.18 |
|
Diluted net income per common share |
|
$ |
0.55 |
|
|
$ |
1.21 |
|
|
$ |
1.69 |
|
|
$ |
2.17 |
|
Dividends declared per share |
|
$ |
0.34 |
|
|
$ |
0.34 |
|
|
$ |
0.68 |
|
|
$ |
0.68 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sandy
Spring Bancorp, Inc. and SubsidiariesHISTORICAL
TRENDS - QUARTERLY FINANCIAL DATA - UNAUDITED |
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
2022 |
(Dollars in thousands, except per share data) |
|
Q2 |
|
Q1 |
|
Q4 |
|
Q3 |
|
Q2 |
|
Q1 |
Profitability for the quarter: |
|
|
|
|
|
|
|
|
|
|
|
|
Tax-equivalent interest income |
|
$ |
159,156 |
|
|
$ |
152,317 |
|
|
$ |
146,332 |
|
|
$ |
131,373 |
|
|
$ |
114,901 |
|
|
$ |
106,902 |
|
Interest expense |
|
|
67,679 |
|
|
|
54,045 |
|
|
|
38,657 |
|
|
|
17,462 |
|
|
|
7,959 |
|
|
|
4,585 |
|
Tax-equivalent net interest income |
|
|
91,477 |
|
|
|
98,272 |
|
|
|
107,675 |
|
|
|
113,911 |
|
|
|
106,942 |
|
|
|
102,317 |
|
Tax-equivalent adjustment |
|
|
1,006 |
|
|
|
970 |
|
|
|
1,032 |
|
|
|
951 |
|
|
|
992 |
|
|
|
866 |
|
Provision/ (credit) for credit
losses |
|
|
5,055 |
|
|
|
(21,536 |
) |
|
|
10,801 |
|
|
|
18,890 |
|
|
|
3,046 |
|
|
|
1,635 |
|
Non-interest income |
|
|
17,176 |
|
|
|
15,951 |
|
|
|
14,297 |
|
|
|
16,882 |
|
|
|
35,245 |
|
|
|
20,595 |
|
Non-interest expense |
|
|
69,136 |
|
|
|
66,305 |
|
|
|
64,375 |
|
|
|
65,780 |
|
|
|
64,991 |
|
|
|
62,147 |
|
Income before income tax
expense |
|
|
33,456 |
|
|
|
68,484 |
|
|
|
45,764 |
|
|
|
45,172 |
|
|
|
73,158 |
|
|
|
58,264 |
|
Income tax expense |
|
|
8,711 |
|
|
|
17,231 |
|
|
|
11,784 |
|
|
|
11,588 |
|
|
|
18,358 |
|
|
|
14,329 |
|
Net income |
|
$ |
24,745 |
|
|
$ |
51,253 |
|
|
$ |
33,980 |
|
|
$ |
33,584 |
|
|
$ |
54,800 |
|
|
$ |
43,935 |
|
GAAP financial
performance: |
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
|
0.70 |
% |
|
|
1.49 |
% |
|
|
0.98 |
% |
|
|
0.99 |
% |
|
|
1.69 |
% |
|
|
1.42 |
% |
Return on average common
equity |
|
|
6.46 |
% |
|
|
13.93 |
% |
|
|
9.23 |
% |
|
|
8.96 |
% |
|
|
14.97 |
% |
|
|
11.83 |
% |
Return on average tangible common
equity |
|
|
8.93 |
% |
|
|
19.10 |
% |
|
|
12.91 |
% |
|
|
12.49 |
% |
|
|
20.83 |
% |
|
|
16.45 |
% |
Net interest margin |
|
|
2.73 |
% |
|
|
2.99 |
% |
|
|
3.26 |
% |
|
|
3.53 |
% |
|
|
3.49 |
% |
|
|
3.49 |
% |
Efficiency ratio - GAAP
basis |
|
|
64.22 |
% |
|
|
58.55 |
% |
|
|
53.23 |
% |
|
|
50.66 |
% |
|
|
46.03 |
% |
|
|
50.92 |
% |
Non-GAAP financial
performance: |
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax pre-provision net
income |
|
$ |
38,511 |
|
|
$ |
46,948 |
|
|
$ |
56,565 |
|
|
$ |
64,062 |
|
|
$ |
76,204 |
|
|
$ |
59,899 |
|
Core after-tax earnings |
|
$ |
27,136 |
|
|
$ |
52,253 |
|
|
$ |
35,322 |
|
|
$ |
35,695 |
|
|
$ |
44,238 |
|
|
$ |
45,050 |
|
Core return on average
assets |
|
|
0.77 |
% |
|
|
1.52 |
% |
|
|
1.02 |
% |
|
|
1.05 |
% |
|
|
1.37 |
% |
|
|
1.45 |
% |
Core return on average common
equity |
|
|
7.09 |
% |
|
|
14.20 |
% |
|
|
9.60 |
% |
|
|
9.53 |
% |
|
|
12.09 |
% |
|
|
12.13 |
% |
Core return on average tangible
common equity |
|
|
9.43 |
% |
|
|
19.11 |
% |
|
|
13.02 |
% |
|
|
12.86 |
% |
|
|
16.49 |
% |
|
|
16.45 |
% |
Core earnings per diluted common
share |
|
$ |
0.60 |
|
|
$ |
1.16 |
|
|
$ |
0.79 |
|
|
$ |
0.80 |
|
|
$ |
0.98 |
|
|
$ |
0.99 |
|
Efficiency ratio - Non-GAAP
basis |
|
|
60.68 |
% |
|
|
56.87 |
% |
|
|
51.46 |
% |
|
|
48.18 |
% |
|
|
49.79 |
% |
|
|
49.34 |
% |
Per share
data: |
|
|
|
|
|
|
|
|
|
|
Net income attributable to common
shareholders |
|
$ |
24,712 |
|
|
$ |
51,084 |
|
|
$ |
33,866 |
|
|
$ |
33,470 |
|
|
$ |
54,606 |
|
|
$ |
43,667 |
|
Basic net income per common
share |
|
$ |
0.55 |
|
|
$ |
1.14 |
|
|
$ |
0.76 |
|
|
$ |
0.75 |
|
|
$ |
1.21 |
|
|
$ |
0.97 |
|
Diluted net income per common
share |
|
$ |
0.55 |
|
|
$ |
1.14 |
|
|
$ |
0.76 |
|
|
$ |
0.75 |
|
|
$ |
1.21 |
|
|
$ |
0.96 |
|
Weighted average diluted common
shares |
|
|
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 |
|
Non-interest
income: |
|
|
|
|
|
|
|
|
|
|
|
|
Securities gains/ (losses) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(393 |
) |
|
$ |
2 |
|
|
$ |
38 |
|
|
$ |
8 |
|
Gain/ (loss) on disposal of
assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(183 |
) |
|
|
16,699 |
|
|
|
— |
|
Service charges on deposit
accounts |
|
|
2,606 |
|
|
|
2,388 |
|
|
|
2,419 |
|
|
|
2,591 |
|
|
|
2,467 |
|
|
|
2,326 |
|
Mortgage banking activities |
|
|
1,817 |
|
|
|
1,245 |
|
|
|
783 |
|
|
|
1,566 |
|
|
|
1,483 |
|
|
|
2,298 |
|
Wealth management income |
|
|
9,031 |
|
|
|
8,992 |
|
|
|
8,472 |
|
|
|
8,867 |
|
|
|
9,098 |
|
|
|
9,337 |
|
Insurance agency commissions |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
812 |
|
|
|
2,115 |
|
Income from bank owned life
insurance |
|
|
1,251 |
|
|
|
907 |
|
|
|
950 |
|
|
|
693 |
|
|
|
703 |
|
|
|
795 |
|
Bank card fees |
|
|
447 |
|
|
|
418 |
|
|
|
463 |
|
|
|
438 |
|
|
|
1,810 |
|
|
|
1,668 |
|
Other income |
|
|
2,024 |
|
|
|
2,001 |
|
|
|
1,603 |
|
|
|
2,908 |
|
|
|
2,135 |
|
|
|
2,048 |
|
Total non-interest income |
|
$ |
17,176 |
|
|
$ |
15,951 |
|
|
$ |
14,297 |
|
|
$ |
16,882 |
|
|
$ |
35,245 |
|
|
$ |
20,595 |
|
Non-interest
expense: |
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits |
|
$ |
40,931 |
|
|
$ |
38,926 |
|
|
$ |
39,455 |
|
|
$ |
40,126 |
|
|
$ |
39,550 |
|
|
$ |
39,373 |
|
Occupancy expense of
premises |
|
|
4,764 |
|
|
|
4,847 |
|
|
|
4,728 |
|
|
|
4,759 |
|
|
|
4,734 |
|
|
|
5,034 |
|
Equipment expenses |
|
|
3,760 |
|
|
|
4,117 |
|
|
|
3,859 |
|
|
|
3,825 |
|
|
|
3,559 |
|
|
|
3,536 |
|
Marketing |
|
|
1,589 |
|
|
|
1,543 |
|
|
|
1,354 |
|
|
|
1,370 |
|
|
|
1,280 |
|
|
|
1,193 |
|
Outside data services |
|
|
2,853 |
|
|
|
2,514 |
|
|
|
2,707 |
|
|
|
2,509 |
|
|
|
2,564 |
|
|
|
2,419 |
|
FDIC insurance |
|
|
2,375 |
|
|
|
2,138 |
|
|
|
1,462 |
|
|
|
1,268 |
|
|
|
1,078 |
|
|
|
984 |
|
Amortization of intangible
assets |
|
|
1,269 |
|
|
|
1,306 |
|
|
|
1,408 |
|
|
|
1,432 |
|
|
|
1,466 |
|
|
|
1,508 |
|
Merger, acquisition and disposal
expense |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
1,067 |
|
|
|
— |
|
Professional fees and
services |
|
|
4,161 |
|
|
|
3,684 |
|
|
|
2,573 |
|
|
|
2,207 |
|
|
|
2,372 |
|
|
|
2,017 |
|
Other expenses |
|
|
7,434 |
|
|
|
7,230 |
|
|
|
6,829 |
|
|
|
8,283 |
|
|
|
7,321 |
|
|
|
6,083 |
|
Total non-interest expense |
|
$ |
69,136 |
|
|
$ |
66,305 |
|
|
$ |
64,375 |
|
|
$ |
65,780 |
|
|
$ |
64,991 |
|
|
$ |
62,147 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sandy
Spring Bancorp, Inc. and SubsidiariesHISTORICAL
TRENDS - QUARTERLY FINANCIAL DATA - UNAUDITED |
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
2022 |
(Dollars in thousands, except per share data) |
|
Q2 |
|
Q1 |
|
Q4 |
|
Q3 |
|
Q2 |
|
Q1 |
Balance
sheets at quarter end: |
|
|
|
|
|
|
|
|
|
|
Commercial investor real estate loans |
|
$ |
5,131,210 |
|
|
$ |
5,167,456 |
|
|
$ |
5,130,094 |
|
|
$ |
5,066,843 |
|
|
$ |
4,761,658 |
|
|
$ |
4,388,275 |
|
Commercial owner-occupied real
estate loans |
|
|
1,770,135 |
|
|
|
1,769,928 |
|
|
|
1,775,037 |
|
|
|
1,743,724 |
|
|
|
1,767,326 |
|
|
|
1,692,253 |
|
Commercial AD&C loans |
|
|
1,045,742 |
|
|
|
1,046,665 |
|
|
|
1,090,028 |
|
|
|
1,143,783 |
|
|
|
1,094,528 |
|
|
|
1,089,331 |
|
Commercial business loans |
|
|
1,423,614 |
|
|
|
1,437,478 |
|
|
|
1,455,885 |
|
|
|
1,393,634 |
|
|
|
1,353,380 |
|
|
|
1,349,602 |
|
Residential mortgage
loans |
|
|
1,385,743 |
|
|
|
1,328,524 |
|
|
|
1,287,933 |
|
|
|
1,218,552 |
|
|
|
1,147,577 |
|
|
|
1,000,697 |
|
Residential construction
loans |
|
|
190,690 |
|
|
|
223,456 |
|
|
|
224,772 |
|
|
|
229,243 |
|
|
|
235,486 |
|
|
|
204,259 |
|
Consumer loans |
|
|
422,505 |
|
|
|
421,734 |
|
|
|
432,957 |
|
|
|
423,034 |
|
|
|
426,335 |
|
|
|
419,911 |
|
Total loans |
|
|
11,369,639 |
|
|
|
11,395,241 |
|
|
|
11,396,706 |
|
|
|
11,218,813 |
|
|
|
10,786,290 |
|
|
|
10,144,328 |
|
Allowance for credit losses -
loans |
|
|
(120,287 |
) |
|
|
(117,613 |
) |
|
|
(136,242 |
) |
|
|
(128,268 |
) |
|
|
(113,670 |
) |
|
|
(110,588 |
) |
Loans held for sale |
|
|
21,476 |
|
|
|
16,262 |
|
|
|
11,706 |
|
|
|
11,469 |
|
|
|
23,610 |
|
|
|
17,537 |
|
Investment securities |
|
|
1,463,554 |
|
|
|
1,528,336 |
|
|
|
1,543,208 |
|
|
|
1,587,279 |
|
|
|
1,595,424 |
|
|
|
1,586,441 |
|
Total assets |
|
|
13,994,545 |
|
|
|
14,129,007 |
|
|
|
13,833,119 |
|
|
|
13,765,597 |
|
|
|
13,303,009 |
|
|
|
12,967,416 |
|
Noninterest-bearing demand
deposits |
|
|
3,079,896 |
|
|
|
3,228,678 |
|
|
|
3,673,300 |
|
|
|
3,993,480 |
|
|
|
4,129,440 |
|
|
|
4,039,797 |
|
Total deposits |
|
|
10,958,922 |
|
|
|
11,075,991 |
|
|
|
10,953,421 |
|
|
|
10,749,486 |
|
|
|
10,969,461 |
|
|
|
10,852,794 |
|
Customer repurchase
agreements |
|
|
74,510 |
|
|
|
47,627 |
|
|
|
61,967 |
|
|
|
91,287 |
|
|
|
110,744 |
|
|
|
130,784 |
|
Total stockholders'
equity |
|
|
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 |
|
$ |
5,146,632 |
|
|
$ |
5,136,204 |
|
|
$ |
5,082,697 |
|
|
$ |
4,898,683 |
|
|
$ |
4,512,937 |
|
|
$ |
4,220,246 |
|
Commercial owner-occupied real
estate loans |
|
|
1,773,039 |
|
|
|
1,769,680 |
|
|
|
1,753,351 |
|
|
|
1,755,891 |
|
|
|
1,727,325 |
|
|
|
1,683,557 |
|
Commercial AD&C loans |
|
|
1,057,205 |
|
|
|
1,082,791 |
|
|
|
1,136,780 |
|
|
|
1,115,531 |
|
|
|
1,096,369 |
|
|
|
1,102,660 |
|
Commercial business loans |
|
|
1,441,489 |
|
|
|
1,444,588 |
|
|
|
1,373,565 |
|
|
|
1,327,218 |
|
|
|
1,334,350 |
|
|
|
1,372,755 |
|
Residential mortgage
loans |
|
|
1,353,809 |
|
|
|
1,307,761 |
|
|
|
1,251,829 |
|
|
|
1,177,664 |
|
|
|
1,070,836 |
|
|
|
964,056 |
|
Residential construction
loans |
|
|
211,590 |
|
|
|
223,313 |
|
|
|
231,318 |
|
|
|
235,123 |
|
|
|
221,031 |
|
|
|
197,366 |
|
Consumer loans |
|
|
423,306 |
|
|
|
424,122 |
|
|
|
426,134 |
|
|
|
422,963 |
|
|
|
421,022 |
|
|
|
424,859 |
|
Total loans |
|
|
11,407,070 |
|
|
|
11,388,459 |
|
|
|
11,255,674 |
|
|
|
10,933,073 |
|
|
|
10,383,870 |
|
|
|
9,965,499 |
|
Loans held for sale |
|
|
17,480 |
|
|
|
8,324 |
|
|
|
10,901 |
|
|
|
15,211 |
|
|
|
12,744 |
|
|
|
17,594 |
|
Investment securities |
|
|
1,639,324 |
|
|
|
1,679,593 |
|
|
|
1,717,455 |
|
|
|
1,734,036 |
|
|
|
1,686,181 |
|
|
|
1,617,615 |
|
Interest-earning assets |
|
|
13,423,589 |
|
|
|
13,316,165 |
|
|
|
13,134,234 |
|
|
|
12,833,758 |
|
|
|
12,283,834 |
|
|
|
11,859,803 |
|
Total assets |
|
|
14,094,653 |
|
|
|
13,949,276 |
|
|
|
13,769,472 |
|
|
|
13,521,595 |
|
|
|
12,991,692 |
|
|
|
12,576,089 |
|
Noninterest-bearing demand
deposits |
|
|
3,137,971 |
|
|
|
3,480,433 |
|
|
|
3,833,275 |
|
|
|
3,995,702 |
|
|
|
4,001,762 |
|
|
|
3,758,732 |
|
Total deposits |
|
|
10,928,038 |
|
|
|
11,049,991 |
|
|
|
11,025,843 |
|
|
|
10,740,999 |
|
|
|
10,829,221 |
|
|
|
10,542,029 |
|
Customer repurchase
agreements |
|
|
58,382 |
|
|
|
60,626 |
|
|
|
74,797 |
|
|
|
104,742 |
|
|
|
122,728 |
|
|
|
131,487 |
|
Total interest-bearing
liabilities |
|
|
9,257,652 |
|
|
|
8,806,720 |
|
|
|
8,310,278 |
|
|
|
7,892,230 |
|
|
|
7,377,045 |
|
|
|
7,163,641 |
|
Total stockholders'
equity |
|
|
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 |
|
|
10.89 |
% |
|
|
10.70 |
% |
|
|
10.61 |
% |
|
|
10.99 |
% |
|
|
11.30 |
% |
|
|
11.98 |
% |
Average investment securities
to average earning assets |
|
|
12.21 |
% |
|
|
12.61 |
% |
|
|
13.08 |
% |
|
|
13.51 |
% |
|
|
13.73 |
% |
|
|
13.64 |
% |
Average loans to average
earning assets |
|
|
84.98 |
% |
|
|
85.52 |
% |
|
|
85.70 |
% |
|
|
85.19 |
% |
|
|
84.53 |
% |
|
|
84.03 |
% |
Loans to assets |
|
|
81.24 |
% |
|
|
80.65 |
% |
|
|
82.39 |
% |
|
|
81.50 |
% |
|
|
81.08 |
% |
|
|
78.23 |
% |
Loans to deposits |
|
|
103.75 |
% |
|
|
102.88 |
% |
|
|
104.05 |
% |
|
|
104.37 |
% |
|
|
98.33 |
% |
|
|
93.47 |
% |
Assets under management |
|
$ |
5,742,888 |
|
|
$ |
5,477,560 |
|
|
$ |
5,255,306 |
|
|
$ |
4,969,092 |
|
|
$ |
5,171,321 |
|
|
$ |
5,793,787 |
|
Capital
measures: |
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 leverage(1) |
|
|
9.42 |
% |
|
|
9.44 |
% |
|
|
9.33 |
% |
|
|
9.33 |
% |
|
|
9.53 |
% |
|
|
9.66 |
% |
Common equity tier 1 capital
to risk-weighted assets(1) |
|
|
10.69 |
% |
|
|
10.53 |
% |
|
|
10.23 |
% |
|
|
10.18 |
% |
|
|
10.42 |
% |
|
|
10.78 |
% |
Tier 1 capital to
risk-weighted assets(1) |
|
|
10.69 |
% |
|
|
10.53 |
% |
|
|
10.23 |
% |
|
|
10.18 |
% |
|
|
10.42 |
% |
|
|
10.78 |
% |
Total regulatory capital to
risk-weighted assets(1) |
|
|
14.66 |
% |
|
|
14.43 |
% |
|
|
14.20 |
% |
|
|
14.15 |
% |
|
|
14.46 |
% |
|
|
15.02 |
% |
Book value per common
share |
|
$ |
34.31 |
|
|
$ |
34.37 |
|
|
$ |
33.23 |
|
|
$ |
32.52 |
|
|
$ |
33.10 |
|
|
$ |
32.97 |
|
Outstanding common shares |
|
|
44,862,369 |
|
|
|
44,712,497 |
|
|
|
44,657,054 |
|
|
|
44,644,269 |
|
|
|
44,629,697 |
|
|
|
45,162,908 |
|
(1) |
|
Estimated ratio at June 30, 2023. |
|
|
|
|
Sandy
Spring Bancorp, Inc. and SubsidiariesLOAN
PORTFOLIO QUALITY DETAIL - UNAUDITED |
|
|
|
|
|
|
|
|
|
2023 |
|
2022 |
(Dollars in thousands) |
|
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 |
|
|
29 |
|
|
|
3,002 |
|
|
|
1,002 |
|
|
|
1,966 |
|
|
|
— |
|
|
|
— |
|
Residential real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage |
|
|
692 |
|
|
|
352 |
|
|
|
— |
|
|
|
167 |
|
|
|
353 |
|
|
|
296 |
|
Residential construction |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Consumer |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
34 |
|
|
|
— |
|
|
|
— |
|
Total loans 90 days past
due |
|
|
721 |
|
|
|
3,569 |
|
|
|
1,002 |
|
|
|
2,167 |
|
|
|
353 |
|
|
|
296 |
|
Non-accrual loans: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial investor real estate |
|
|
20,381 |
|
|
|
15,451 |
|
|
|
9,943 |
|
|
|
14,038 |
|
|
|
11,245 |
|
|
|
11,743 |
|
Commercial owner-occupied real estate |
|
|
4,846 |
|
|
|
4,949 |
|
|
|
5,019 |
|
|
|
6,294 |
|
|
|
7,869 |
|
|
|
8,083 |
|
Commercial AD&C |
|
|
569 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,353 |
|
|
|
1,081 |
|
Commercial business |
|
|
9,393 |
|
|
|
9,443 |
|
|
|
7,322 |
|
|
|
7,198 |
|
|
|
7,542 |
|
|
|
8,357 |
|
Residential real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage |
|
|
10,153 |
|
|
|
8,935 |
|
|
|
7,439 |
|
|
|
7,514 |
|
|
|
7,305 |
|
|
|
8,148 |
|
Residential construction |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
51 |
|
Consumer |
|
|
3,396 |
|
|
|
4,900 |
|
|
|
5,059 |
|
|
|
5,173 |
|
|
|
5,692 |
|
|
|
6,406 |
|
Total non-accrual loans |
|
|
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 |
|
|
49,459 |
|
|
|
47,247 |
|
|
|
39,359 |
|
|
|
44,461 |
|
|
|
43,479 |
|
|
|
46,326 |
|
Other assets and other real
estate owned (OREO) |
|
|
611 |
|
|
|
645 |
|
|
|
645 |
|
|
|
739 |
|
|
|
739 |
|
|
|
1,034 |
|
Total non-performing assets |
|
$ |
50,070 |
|
|
$ |
47,892 |
|
|
$ |
40,004 |
|
|
$ |
45,200 |
|
|
$ |
44,218 |
|
|
$ |
47,360 |
|
|
|
For the Quarter Ended, |
(Dollars in thousands) |
|
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 |
|
$ |
43,678 |
|
|
$ |
34,782 |
|
|
$ |
40,217 |
|
|
$ |
41,007 |
|
|
$ |
43,869 |
|
|
$ |
46,086 |
|
Non-accrual balances transferred to OREO |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Non-accrual balances charged-off |
|
|
(2,049 |
) |
|
|
(126 |
) |
|
|
(22 |
) |
|
|
(197 |
) |
|
|
(376 |
) |
|
|
(265 |
) |
Net payments or draws |
|
|
(1,654 |
) |
|
|
(10,212 |
) |
|
|
(9,535 |
) |
|
|
(3,509 |
) |
|
|
(3,234 |
) |
|
|
(2,787 |
) |
Loans placed on non-accrual |
|
|
9,276 |
|
|
|
19,714 |
|
|
|
5,467 |
|
|
|
4,212 |
|
|
|
948 |
|
|
|
1,503 |
|
Non-accrual loans brought current |
|
|
(513 |
) |
|
|
(480 |
) |
|
|
(1,345 |
) |
|
|
(1,296 |
) |
|
|
(200 |
) |
|
|
(668 |
) |
Balance at end of period |
|
$ |
48,738 |
|
|
$ |
43,678 |
|
|
$ |
34,782 |
|
|
$ |
40,217 |
|
|
$ |
41,007 |
|
|
$ |
43,869 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Analysis of allowance for
credit losses - loans: |
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of
period |
|
$ |
117,613 |
|
|
$ |
136,242 |
|
|
$ |
128,268 |
|
|
$ |
113,670 |
|
|
$ |
110,588 |
|
|
$ |
109,145 |
|
Provision/ (credit) for credit losses - loans |
|
|
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 |
|
|
(14 |
) |
|
|
(5 |
) |
|
|
(1 |
) |
|
|
— |
|
|
|
(300 |
) |
|
|
(19 |
) |
Commercial owner-occupied real estate |
|
|
(27 |
) |
|
|
(26 |
) |
|
|
(27 |
) |
|
|
(10 |
) |
|
|
(12 |
) |
|
|
— |
|
Commercial AD&C |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Commercial business |
|
|
363 |
|
|
|
(127 |
) |
|
|
(13 |
) |
|
|
(512 |
) |
|
|
331 |
|
|
|
111 |
|
Residential real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage |
|
|
35 |
|
|
|
21 |
|
|
|
(50 |
) |
|
|
(8 |
) |
|
|
(9 |
) |
|
|
120 |
|
Residential construction |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3 |
) |
|
|
(5 |
) |
|
|
— |
|
Consumer |
|
|
1,423 |
|
|
|
(179 |
) |
|
|
24 |
|
|
|
27 |
|
|
|
(41 |
) |
|
|
(20 |
) |
Net charge-offs/
(recoveries) |
|
|
1,780 |
|
|
|
(316 |
) |
|
|
(67 |
) |
|
|
(506 |
) |
|
|
(36 |
) |
|
|
192 |
|
Balance at the end of period |
|
$ |
120,287 |
|
|
$ |
117,613 |
|
|
$ |
136,242 |
|
|
$ |
128,268 |
|
|
$ |
113,670 |
|
|
$ |
110,588 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset quality
ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans to total loans |
|
|
0.44 |
% |
|
|
0.41 |
% |
|
|
0.35 |
% |
|
|
0.40 |
% |
|
|
0.40 |
% |
|
|
0.46 |
% |
Non-performing assets to total assets |
|
|
0.36 |
% |
|
|
0.34 |
% |
|
|
0.29 |
% |
|
|
0.33 |
% |
|
|
0.33 |
% |
|
|
0.37 |
% |
Allowance for credit losses to loans |
|
|
1.06 |
% |
|
|
1.03 |
% |
|
|
1.20 |
% |
|
|
1.14 |
% |
|
|
1.05 |
% |
|
|
1.09 |
% |
Allowance for credit losses to non-performing loans |
|
|
243.21 |
% |
|
|
248.93 |
% |
|
|
346.15 |
% |
|
|
288.50 |
% |
|
|
261.44 |
% |
|
|
238.72 |
% |
Annualized net charge-offs/ (recoveries) to average loans |
|
|
0.06 |
% |
|
(0.01 |
)% |
|
|
— |
% |
|
(0.02 |
)% |
|
|
— |
% |
|
|
0.01 |
% |
(1) |
|
Effective January 1, 2023, the Company adopted ASU 2022-02, which
eliminated the accounting and recognition of troubled debt
restructurings ("TDRs"). |
|
|
|
|
Sandy
Spring Bancorp, Inc. and SubsidiariesCONSOLIDATED
AVERAGE BALANCES, YIELDS AND RATES - UNAUDITED |
|
|
|
|
|
Three Months Ended June 30, |
|
|
2023 |
|
2022 |
(Dollars in thousands and tax-equivalent) |
|
AverageBalances |
|
Interest(1) |
|
AnnualizedAverageYield/Rate |
|
AverageBalances |
|
Interest(1) |
|
AnnualizedAverageYield/Rate |
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial investor real estate loans |
|
$ |
5,146,632 |
|
|
$ |
58,784 |
|
4.58 |
% |
|
$ |
4,512,937 |
|
|
$ |
45,148 |
|
4.01 |
% |
Commercial owner-occupied real
estate loans |
|
|
1,773,039 |
|
|
|
20,575 |
|
4.65 |
|
|
|
1,727,325 |
|
|
|
19,410 |
|
4.51 |
|
Commercial AD&C loans |
|
|
1,057,205 |
|
|
|
20,663 |
|
7.84 |
|
|
|
1,096,369 |
|
|
|
11,727 |
|
4.29 |
|
Commercial business loans |
|
|
1,441,489 |
|
|
|
22,715 |
|
6.32 |
|
|
|
1,334,350 |
|
|
|
15,820 |
|
4.76 |
|
Total commercial loans |
|
|
9,418,365 |
|
|
|
122,737 |
|
5.23 |
|
|
|
8,670,981 |
|
|
|
92,105 |
|
4.26 |
|
Residential mortgage loans |
|
|
1,353,809 |
|
|
|
11,957 |
|
3.53 |
|
|
|
1,070,836 |
|
|
|
8,878 |
|
3.32 |
|
Residential construction
loans |
|
|
211,590 |
|
|
|
1,808 |
|
3.43 |
|
|
|
221,031 |
|
|
|
1,710 |
|
3.10 |
|
Consumer loans |
|
|
423,306 |
|
|
|
8,325 |
|
7.89 |
|
|
|
421,022 |
|
|
|
3,992 |
|
3.80 |
|
Total residential and consumer loans |
|
|
1,988,705 |
|
|
|
22,090 |
|
4.45 |
|
|
|
1,712,889 |
|
|
|
14,580 |
|
3.41 |
|
Total loans(2) |
|
|
11,407,070 |
|
|
|
144,827 |
|
5.09 |
|
|
|
10,383,870 |
|
|
|
106,685 |
|
4.12 |
|
Loans held for sale |
|
|
17,480 |
|
|
|
307 |
|
7.04 |
|
|
|
12,744 |
|
|
|
145 |
|
4.56 |
|
Taxable securities |
|
|
1,289,529 |
|
|
|
6,848 |
|
2.12 |
|
|
|
1,195,129 |
|
|
|
4,630 |
|
1.55 |
|
Tax-advantaged securities |
|
|
349,795 |
|
|
|
2,248 |
|
2.57 |
|
|
|
491,052 |
|
|
|
3,082 |
|
2.51 |
|
Total investment securities(3) |
|
|
1,639,324 |
|
|
|
9,096 |
|
2.22 |
|
|
|
1,686,181 |
|
|
|
7,712 |
|
1.83 |
|
Interest-bearing deposits with
banks |
|
|
359,093 |
|
|
|
4,922 |
|
5.50 |
|
|
|
200,560 |
|
|
|
358 |
|
0.72 |
|
Federal funds sold |
|
|
622 |
|
|
|
4 |
|
2.87 |
|
|
|
479 |
|
|
|
1 |
|
0.81 |
|
Total interest-earning assets |
|
|
13,423,589 |
|
|
|
159,156 |
|
4.75 |
|
|
|
12,283,834 |
|
|
|
114,901 |
|
3.75 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: allowance for credit losses
- loans |
|
|
(117,587 |
) |
|
|
|
|
|
|
(112,656 |
) |
|
|
|
|
Cash and due from banks |
|
|
96,487 |
|
|
|
|
|
|
|
84,931 |
|
|
|
|
|
Premises and equipment, net |
|
|
70,691 |
|
|
|
|
|
|
|
62,422 |
|
|
|
|
|
Other assets |
|
|
621,473 |
|
|
|
|
|
|
|
673,161 |
|
|
|
|
|
Total assets |
|
$ |
14,094,653 |
|
|
|
|
|
|
$ |
12,991,692 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand
deposits |
|
$ |
1,439,418 |
|
|
$ |
3,606 |
|
1.00 |
% |
|
$ |
1,488,034 |
|
|
$ |
414 |
|
0.11 |
% |
Regular savings deposits |
|
|
609,721 |
|
|
|
1,897 |
|
1.25 |
|
|
|
559,906 |
|
|
|
22 |
|
0.02 |
|
Money market savings
deposits |
|
|
3,041,652 |
|
|
|
22,516 |
|
2.97 |
|
|
|
3,376,742 |
|
|
|
1,497 |
|
0.18 |
|
Time deposits |
|
|
2,699,276 |
|
|
|
23,306 |
|
3.46 |
|
|
|
1,402,777 |
|
|
|
1,862 |
|
0.53 |
|
Total interest-bearing deposits |
|
|
7,790,067 |
|
|
|
51,325 |
|
2.64 |
|
|
|
6,827,459 |
|
|
|
3,795 |
|
0.22 |
|
Repurchase agreements |
|
|
58,382 |
|
|
|
184 |
|
1.26 |
|
|
|
122,728 |
|
|
|
35 |
|
0.11 |
|
Federal funds purchased and
Federal Reserve Bank borrowings |
|
|
320,661 |
|
|
|
4,007 |
|
5.01 |
|
|
|
53,055 |
|
|
|
166 |
|
1.26 |
|
Advances from FHLB |
|
|
718,132 |
|
|
|
8,216 |
|
4.59 |
|
|
|
3,809 |
|
|
|
17 |
|
1.74 |
|
Subordinated debt |
|
|
370,410 |
|
|
|
3,947 |
|
4.26 |
|
|
|
369,994 |
|
|
|
3,946 |
|
4.27 |
|
Total borrowings |
|
|
1,467,585 |
|
|
|
16,354 |
|
4.47 |
|
|
|
549,586 |
|
|
|
4,164 |
|
3.04 |
|
Total interest-bearing liabilities |
|
|
9,257,652 |
|
|
|
67,679 |
|
2.93 |
|
|
|
7,377,045 |
|
|
|
7,959 |
|
0.43 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand
deposits |
|
|
3,137,971 |
|
|
|
|
|
|
|
4,001,762 |
|
|
|
|
|
Other liabilities |
|
|
163,565 |
|
|
|
|
|
|
|
144,849 |
|
|
|
|
|
Stockholders' equity |
|
|
1,535,465 |
|
|
|
|
|
|
|
1,468,036 |
|
|
|
|
|
Total liabilities and stockholders' equity |
|
$ |
14,094,653 |
|
|
|
|
|
|
$ |
12,991,692 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax-equivalent net interest
income and spread |
|
|
|
$ |
91,477 |
|
1.82 |
% |
|
|
|
$ |
106,942 |
|
3.32 |
% |
Less: tax-equivalent adjustment |
|
|
|
|
1,006 |
|
|
|
|
|
|
992 |
|
|
Net interest income |
|
|
|
$ |
90,471 |
|
|
|
|
|
$ |
105,950 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income/earning
assets |
|
|
|
|
|
4.75 |
% |
|
|
|
|
|
3.75 |
% |
Interest expense/earning
assets |
|
|
|
|
|
2.02 |
|
|
|
|
|
|
0.26 |
|
Net interest margin |
|
|
|
|
|
2.73 |
% |
|
|
|
|
|
3.49 |
% |
(1) |
|
Tax-equivalent income has been adjusted using the combined marginal
federal and state rate of 25.47% and 25.64% for 2023 and 2022,
respectively. The annualized taxable-equivalent adjustments
utilized in the above table to compute yields aggregated to
$1.0 million and $1.0 million in 2023 and 2022,
respectively. |
(2) |
|
Non-accrual loans are included in the average balances. |
(3) |
|
Available-for-sale investments are presented at amortized
cost. |
|
|
|
|
Sandy
Spring Bancorp, Inc. and SubsidiariesCONSOLIDATED
AVERAGE BALANCES, YIELDS AND RATES - UNAUDITED |
|
|
|
|
|
Six Months Ended June 30, |
|
|
2023 |
|
2022 |
(Dollars in thousands and
tax-equivalent) |
|
AverageBalances |
|
Interest(1) |
|
AnnualizedAverageYield/Rate |
|
AverageBalances |
|
Interest(1) |
|
AnnualizedAverageYield/Rate |
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial investor real estate loans |
|
$ |
5,141,447 |
|
|
$ |
116,585 |
|
4.57 |
% |
|
$ |
4,367,400 |
|
|
$ |
86,782 |
|
4.01 |
% |
Commercial owner-occupied real
estate loans |
|
|
1,771,369 |
|
|
|
40,173 |
|
4.57 |
|
|
|
1,705,562 |
|
|
|
37,842 |
|
4.47 |
|
Commercial AD&C loans |
|
|
1,069,927 |
|
|
|
40,502 |
|
7.63 |
|
|
|
1,099,498 |
|
|
|
22,320 |
|
4.09 |
|
Commercial business loans |
|
|
1,443,030 |
|
|
|
44,915 |
|
6.28 |
|
|
|
1,353,446 |
|
|
|
32,174 |
|
4.79 |
|
Total commercial loans |
|
|
9,425,773 |
|
|
|
242,175 |
|
5.18 |
|
|
|
8,525,906 |
|
|
|
179,118 |
|
4.24 |
|
Residential mortgage loans |
|
|
1,330,912 |
|
|
|
23,375 |
|
3.51 |
|
|
|
1,017,741 |
|
|
|
16,652 |
|
3.27 |
|
Residential construction
loans |
|
|
217,419 |
|
|
|
3,622 |
|
3.36 |
|
|
|
209,264 |
|
|
|
3,267 |
|
3.15 |
|
Consumer loans |
|
|
423,711 |
|
|
|
15,912 |
|
7.57 |
|
|
|
422,929 |
|
|
|
7,581 |
|
3.61 |
|
Total residential and consumer loans |
|
|
1,972,042 |
|
|
|
42,909 |
|
4.37 |
|
|
|
1,649,934 |
|
|
|
27,500 |
|
3.34 |
|
Total loans(2) |
|
|
11,397,815 |
|
|
|
285,084 |
|
5.04 |
|
|
|
10,175,840 |
|
|
|
206,618 |
|
4.09 |
|
Loans held for sale |
|
|
12,927 |
|
|
|
459 |
|
7.10 |
|
|
|
15,155 |
|
|
|
343 |
|
4.53 |
|
Taxable securities |
|
|
1,293,626 |
|
|
|
13,856 |
|
2.14 |
|
|
|
1,180,168 |
|
|
|
8,737 |
|
1.48 |
|
Tax-advantaged securities |
|
|
365,721 |
|
|
|
4,458 |
|
2.44 |
|
|
|
471,919 |
|
|
|
5,633 |
|
2.39 |
|
Total investment securities(3) |
|
|
1,659,347 |
|
|
|
18,314 |
|
2.21 |
|
|
|
1,652,087 |
|
|
|
14,370 |
|
1.74 |
|
Interest-bearing deposits with
banks |
|
|
299,606 |
|
|
|
7,608 |
|
5.12 |
|
|
|
229,257 |
|
|
|
471 |
|
0.41 |
|
Federal funds sold |
|
|
477 |
|
|
|
8 |
|
3.50 |
|
|
|
650 |
|
|
|
1 |
|
0.43 |
|
Total interest-earning assets |
|
|
13,370,172 |
|
|
|
311,473 |
|
4.69 |
|
|
|
12,072,989 |
|
|
|
221,803 |
|
3.70 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: allowance for credit losses
- loans |
|
|
(127,189 |
) |
|
|
|
|
|
|
(111,302 |
) |
|
|
|
|
Cash and due from banks |
|
|
95,776 |
|
|
|
|
|
|
|
75,750 |
|
|
|
|
|
Premises and equipment, net |
|
|
69,202 |
|
|
|
|
|
|
|
61,733 |
|
|
|
|
|
Other assets |
|
|
614,403 |
|
|
|
|
|
|
|
685,870 |
|
|
|
|
|
Total assets |
|
$ |
14,022,364 |
|
|
|
|
|
|
$ |
12,785,040 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand
deposits |
|
$ |
1,410,797 |
|
|
$ |
6,236 |
|
0.89 |
% |
|
$ |
1,494,809 |
|
|
$ |
572 |
|
0.08 |
% |
Regular savings deposits |
|
|
557,830 |
|
|
|
2,260 |
|
0.82 |
|
|
|
553,435 |
|
|
|
41 |
|
0.01 |
|
Money market savings
deposits |
|
|
3,170,010 |
|
|
|
43,854 |
|
2.79 |
|
|
|
3,401,641 |
|
|
|
2,122 |
|
0.13 |
|
Time deposits |
|
|
2,541,784 |
|
|
|
39,763 |
|
3.15 |
|
|
|
1,355,615 |
|
|
|
3,353 |
|
0.50 |
|
Total interest-bearing deposits |
|
|
7,680,421 |
|
|
|
92,113 |
|
2.42 |
|
|
|
6,805,500 |
|
|
|
6,088 |
|
0.18 |
|
Repurchase agreements |
|
|
59,498 |
|
|
|
205 |
|
0.69 |
|
|
|
127,083 |
|
|
|
74 |
|
0.12 |
|
Federal funds purchased and
Federal Reserve Bank borrowings |
|
|
246,354 |
|
|
|
6,090 |
|
4.99 |
|
|
|
49,271 |
|
|
|
181 |
|
0.74 |
|
Advances from FHLB |
|
|
676,823 |
|
|
|
15,423 |
|
4.60 |
|
|
|
1,915 |
|
|
|
17 |
|
1.74 |
|
Subordinated debt |
|
|
370,334 |
|
|
|
7,893 |
|
4.26 |
|
|
|
287,164 |
|
|
|
6,184 |
|
4.31 |
|
Total borrowings |
|
|
1,353,009 |
|
|
|
29,611 |
|
4.41 |
|
|
|
465,433 |
|
|
|
6,456 |
|
2.80 |
|
Total interest-bearing liabilities |
|
|
9,033,430 |
|
|
|
121,724 |
|
2.72 |
|
|
|
7,270,933 |
|
|
|
12,544 |
|
0.35 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand
deposits |
|
|
3,308,256 |
|
|
|
|
|
|
|
3,880,919 |
|
|
|
|
|
Other liabilities |
|
|
166,861 |
|
|
|
|
|
|
|
146,018 |
|
|
|
|
|
Stockholders' equity |
|
|
1,513,817 |
|
|
|
|
|
|
|
1,487,170 |
|
|
|
|
|
Total liabilities and stockholders' equity |
|
$ |
14,022,364 |
|
|
|
|
|
|
$ |
12,785,040 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax-equivalent net interest
income and spread |
|
|
|
$ |
189,749 |
|
1.97 |
% |
|
|
|
$ |
209,259 |
|
3.35 |
% |
Less: tax-equivalent adjustment |
|
|
|
|
1,976 |
|
|
|
|
|
|
1,858 |
|
|
Net interest income |
|
|
|
$ |
187,773 |
|
|
|
|
|
$ |
207,401 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income/earning
assets |
|
|
|
|
|
4.69 |
% |
|
|
|
|
|
3.70 |
% |
Interest expense/earning
assets |
|
|
|
|
|
1.83 |
|
|
|
|
|
|
0.21 |
|
Net interest margin |
|
|
|
|
|
2.86 |
% |
|
|
|
|
|
3.49 |
% |
(1) |
|
Tax-equivalent income has been adjusted using the combined marginal
federal and state rate of 25.47% and 25.64% for 2023 and 2022,
respectively. The annualized taxable-equivalent adjustments
utilized in the above table to compute yields aggregated to
$2.0 million and $1.9 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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