OLNEY, Md., Oct. 17 /PRNewswire-FirstCall/ -- Sandy Spring Bancorp, Inc., the parent company of Sandy Spring Bank, today announced net income for the third quarter of 2006 of $8.1 million ($.55 per diluted share) compared to $9.5 million ($.64 per diluted share) for the third quarter of 2005 and $8.1 million ($.54 per diluted share) for the linked second quarter of 2006. Net income for the nine-month period ending September 30, 2006 totaled $24.6 million ($1.65 per diluted share) compared to $25.1 million ($1.70 per diluted share) for the prior year period, a 2% decrease.
(Logo: http://www.newscom.com/cgi-bin/prnh/20010424/SSPRINGLOGO-a )
"The interest rate environment is the dominant force affecting our performance for the quarter," said Hunter R. Hollar, President and Chief Executive Officer. "Loan growth continued at a consistent 15% rate as a result of ongoing solid demand from our small business and middle-market commercial customers. With customer funding sources growing at a level of 6%, our major challenges are the same as the industry-wide challenges of funding the growth of our loan portfolios, and expanding our stream of noninterest revenue."
"Even in this difficult operating environment, during the quarter we were able to add a significant number of profitable new relationships with the introduction of our new demand deposit product line, announce our first bank acquisition since 1996, and continue to grow noninterest income at a healthy rate with our fee-based business lines."
"Excluding the favorable impact of securities gains in the third quarter of 2005, noninterest income was up 15% for the comparable quarter of this year. This reflects the acquisition of West Financial Services, growth in trust assets under management, higher insurance agency commissions and improved fees on the sales of investment products."
"We are very enthusiastic about continuing to build and expand our business lines in northern Virginia, with the acquisition of Potomac Bank. We believe the combined organization can rapidly deliver expanded capabilities and value to Potomac's customer base -- particularly in terms of our higher lending limits and the addition of our scope of fee-based offerings, such as investment products, insurance and, in particular, asset management through West Financial, our existing McLean, Virginia based company," said Hollar.
Sandy Spring Bancorp's return on average stockholders' equity was 14.06% for the third quarter of 2006, compared to 18.31% for the same period in the prior year. Return on average assets for the third quarter of 2006 was 1.24%, compared to 1.58% for the third quarter of 2005.
For the first nine months of 2006, return on average stockholders' equity was 14.64% compared to 16.74% for the first nine months of 2005. Return on average assets for the first nine months of 2006 was 1.29%, compared to 1.44% for the first nine months of 2005.
Comparing September 30, 2006 balances to September 30, 2005, total assets increased 9% to $2.6 billion due mainly to growth in the loan portfolio. Total loans and leases increased 15% to $1.8 billion compared to the prior year. Customer funding sources, which include deposits plus other short-term borrowings from core customers, increased 6% to $2.1 billion at September 30, 2006. Stockholders' equity totaled $233.7 million at quarter end, and represented 9.0% of total assets, compared to 8.7% at September 30, 2005.
Due primarily to growth in the loan portfolio, the provision for loan and lease losses totaled $0.6 million for both the third quarter of 2006 and the third quarter of 2005. The provision for loan and lease losses totaled $2.5 million for the first nine months of 2006 compared to $1.6 million in the same period in 2005. The allowance for loan and lease losses represented 1.07% of outstanding loans at September 30, 2006.
The Company's management will host a conference call to discuss its third quarter results today at 2:00 P.M. (ET). A live Web cast of the conference call is available through the Investor Relations' section of the Sandy Spring Web site at http://www.sandyspringbank.com/.
DETAILED REVIEW OF FINANCIAL RESULTS
Comparing the third quarter of 2006 and 2005, net interest income increased by $1.6 million, or 7%, due primarily to continued growth in the loan portfolio which was partially offset by a lower net interest margin. The net interest margin decreased to 4.25% in 2006 from 4.39% in 2005 due primarily to a decrease in noninterest bearing deposits and increased short- term borrowings within a flat yield curve environment.
Noninterest income decreased 5% in the third quarter of 2006 as compared to 2005 due primarily to securities gains recognized in the third quarter of 2005. Excluding securities gains, noninterest income increased 15% in the third quarter as compared to 2005. Trust and investment management fees increased 94% due to growth in trust assets under management and the acquisition of West Financial Services, Inc. in the fourth quarter of 2005. Insurance agency commissions also increased 26% over 2005 due to higher premiums from commercial property and casualty lines and the acquisition of Neff & Associates in the first quarter of 2006. Fees on sales of investment products increased 66% over the prior year due to increased sales volumes while Visa(R) check fees increased 9% reflecting a growing volume of electronic banking transactions. These increases were partially offset by a decline of 40% in gains on sales of mortgage loans reflecting lower mortgage loan origination volumes.
Noninterest expenses were $21.7 million in the third quarter of 2006 compared to $18.7 million in 2005, an increase of $3.0 million or 16%. This increase was primarily the result of increases in salaries and benefits due to the acquisition of West Financial Services, Inc. and Neff & Associates, a larger staff and higher marketing expenses. Outside data services grew during the quarter by 21% while the increase in marketing expenses over the second quarter of 2005 represented long term investments under the Company's strategic plan. Intangibles amortization increased $0.2 million or 48% as a result of the above acquisitions.
Stock-based compensation expense of $0.1 million, net of income taxes ($.01 per diluted share) was recorded in the third quarter of 2006 as required under a new accounting standard (SFAS 123R). The Company estimates the full year effect of this new accounting rule to total $0.5 million, net of income taxes ($.03 per diluted share).
Comparing the first nine months of 2006 and 2005, net interest income increased by $5.9 million, or 9%, due primarily to continued growth in the loan portfolio which was somewhat offset by a lower net interest margin. The net interest margin decreased to 4.30% in 2006 from 4.39% in 2005 due largely to a decrease in noninterest bearing deposits and increased short-term borrowings as a result of the flat yield curve environment.
Noninterest income increased 7% in the first nine months of 2006 as compared to 2005 due to increases in virtually every business line. Excluding securities gains, noninterest income increased 18% in the first nine months of the year over the prior year period. Trust and investment management fees increased 121% due to growth in trust assets under management and the acquisition of West Financial Services, Inc. in the fourth quarter of 2005. Insurance agency commissions also increased 24% over 2005 due to higher premiums from commercial property and casualty lines and the acquisition of Neff & Associates in the first quarter of 2006. Fees on sales of investment products also increased 45% over the prior year due to increased sales volumes while Visa(R) check fees increased 10%. Gains on sales of mortgage loans decreased 27% reflecting market conditions.
Noninterest expenses were $62.9 million in the first nine months of 2006 compared to $56.3 million in 2005, an increase of $6.6 million or 12%. This increase was primarily the result of increases in salaries and benefits due to the acquisition of West Financial Services, Inc. and Neff & Associates, a larger staff and higher marketing expenses which increased by 108% over the prior year period in accord with the Company's strategic plan as mentioned above. Intangibles amortization increased $0.7 million or 48% as a result of the above acquisitions.
Stock-based compensation expense of $0.3 million, net of income taxes ($.02 per diluted share) was recorded in the first nine months of 2006 as required under a new accounting standard (SFAS 123R).
About Sandy Spring Bancorp/Sandy Spring Bank
With $2.6 billion in assets, Sandy Spring Bancorp is the holding company for Sandy Spring Bank and its principal subsidiaries, Sandy Spring Insurance Corporation, The Equipment Leasing Company and West Financial Services, Inc. Sandy Spring Bancorp is the third largest publicly traded banking company headquartered in Maryland. Sandy Spring is a community banking organization that focuses its lending and other services on businesses and consumers in the local market area. Independent and community-oriented, Sandy Spring Bank was founded in 1868 and offers a broad range of commercial banking, retail banking and trust services through 32 community offices in Anne Arundel, Carroll, Frederick, Howard, Montgomery, and Prince George's counties in Maryland. Through its subsidiaries, the Bank also offers a comprehensive menu of leasing, insurance and investment management services. Visit http://www.sandyspringbank.com/ to locate an ATM near you or for more information about Sandy Spring Bank.
Forward-Looking Statements: Sandy Spring Bancorp makes forward-looking statements in this News Release that are subject to risks and uncertainties. These forward-looking statements include: statements of goals, intentions, earnings expectations, and other expectations; estimates of risks and of future costs and benefits; assessments of probable loan and lease losses; assessments of market risk; and statements of the ability to achieve financial and other goals. These forward-looking statements are subject to significant uncertainties because they are based upon or are affected by: management's estimates and projections of future interest rates, market behavior, and other economic conditions; future laws and regulations; and a variety of other matters which, by their nature, are subject to significant uncertainties. Because of these uncertainties, Sandy Spring Bancorp's actual future results may differ materially from those indicated. In addition, the Company's past results of operations do not necessarily indicate its future results.
Sandy Spring Bancorp, Inc. and Subsidiaries
FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share data)
Three Months Ended
September 30, %
2006 2005 Change
Profitability for the period:
Net interest income $24,122 $22,526 7
Provision for loan and lease losses 550 600 (8)
Noninterest income 9,590 10,112 (5)
Noninterest expenses 21,694 18,744 16
Income before income taxes 11,468 13,294 (14)
Net income 8,122 9,467 (14)
Return on average assets 1.24% 1.58%
Return on average equity 14.06% 18.31%
Net interest margin 4.25% 4.39%
Efficiency ratio -- GAAP based * 64.35% 57.43%
Efficiency ratio -- traditional * 59.20% 55.74%
Per share data:
Basic net income $0.55 $0.65 (15)
Diluted net income 0.55 0.64 (14)
Dividends declared 0.22 0.21 5
Book value 15.78 14.23 11
Tangible book value 14.15 13.07 8
Average fully diluted shares 14,915,454 14,735,318
At period-end:
Assets $2,598,458 $2,383,360 9
Deposits 1,947,850 1,804,888 8
Loans and leases 1,815,490 1,579,135 15
Securities 551,138 584,316 (6)
Stockholders' equity 233,693 208,090 12
Capital and credit quality ratios:
Average equity to average assets 8.82% 8.60%
Allowance for loan and lease losses
to loans and leases 1.07% 1.03%
Nonperforming assets to total
assets 0.15% 0.14%
Annualized net charge-offs to
average loans and leases 0.00% 0.00%
* The GAAP based efficiency ratio is noninterest expenses divided by net
interest income plus noninterest income from the Consolidated Statements
of Income. The traditional, non-GAAP efficiency ratio excludes
intangible asset amortization from noninterest expenses; excludes
securities gains from noninterest income; and adds the tax-equivalent
adjustment to net interest income. See the Reconciliation Table
included with these Financial Highlights.
Certain reclassifications and restatements of information previously
reported have been made to conform with current presentation.
Sandy Spring Bancorp, Inc. and Subsidiaries
FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share data)
Nine Months Ended
September 30, %
2006 2005 Change
Profitability for the period:
Net interest income $71,151 $65,253 9
Provision for loan and lease losses 2,545 1,600 59
Noninterest income 28,831 27,005 7
Noninterest expenses 62,878 56,334 12
Income before income taxes 34,559 34,324 1
Net income 24,557 25,120 (2)
Return on average assets 1.29% 1.44%
Return on average equity 14.64% 16.74%
Net interest margin 4.30% 4.39%
Efficiency ratio -- GAAP based * 62.89% 61.06%
Efficiency ratio -- traditional * 57.98% 57.73%
Per share data:
Basic net income $1.66 $1.72 (3)
Diluted net income 1.65 1.70 (3)
Dividends declared 0.66 0.62 6
Book value 15.78 14.23 11
Tangible book value 14.15 13.07 8
Average fully diluted shares 14,920,255 14,738,845
At period-end:
Assets $2,598,458 $2,383,360 9
Deposits 1,947,850 1,804,888 8
Loans and leases 1,815,490 1,579,135 15
Securities 551,138 584,316 (6)
Stockholders' equity 233,693 208,090 12
Capital and credit quality ratios:
Average equity to average assets 8.81% 8.62%
Allowance for loan and lease losses
to loans and leases 1.07% 1.03%
Nonperforming assets to total
assets 0.15% 0.14%
Annualized net charge-offs to
average loans and leases 0.00% 0.00%
* The GAAP based efficiency ratio is noninterest expenses divided by net
interest income plus noninterest income from the Consolidated Statements
of Income. The traditional, non-GAAP efficiency ratio excludes
intangible asset amortization from noninterest expenses; excludes
securities gains from noninterest income; and adds the tax-equivalent
adjustment to net interest income. See the Reconciliation Table
included with these Financial Highlights.
Certain reclassifications and restatements of information previously
reported have been made to conform with current presentation.
Sandy Spring Bancorp, Inc. and Subsidiaries
Reconciliation of GAAP-based and Traditional Efficiency Ratios
(In thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
2006 2005 2006 2005
Noninterest expenses-GAAP based 21,694 $18,744 62,878 $56,334
Net interest income plus noninterest
income-GAAP based 33,712 32,638 99,982 92,258
Efficiency ratio-GAAP based 64.35% 57.43% 62.89% 61.06%
Noninterest expenses-GAAP based $21,694 $18,744 $62,878 $56,334
Less non-GAAP adjustment:
Amortization of intangible assets 743 501 2,227 1,502
Noninterest expenses-traditional
ratio 20,951 18,243 60,651 54,832
Net interest income plus noninterest
income-GAAP based 33,712 32,638 99,982 92,258
Plus non-GAAP adjustment:
Tax-equivalency 1,677 1,853 4,618 5,328
Less non-GAAP adjustments:
Securities gains 0 1,761 1 2,601
Net interest income plus
noninterest income -
traditional ratio 35,389 32,730 104,599 94,985
Efficiency ratio - traditional 59.20% 55.74% 57.98% 57.73%
Sandy Spring Bancorp, Inc. and Subsidiaries
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except per share data)
September 30 December 31
2006 2005 2005
Assets
Cash and due from banks $42,558 $48,412 $47,294
Federal funds sold 25,129 12,639 6,149
Cash and cash equivalents 67,687 61,051 53,443
Interest-bearing deposits with banks 317 802 751
Residential mortgage loans held for
sale (at fair value) 21,111 25,826 10,439
Investments available-for-sale (at
fair value) 261,645 271,022 256,571
Investments held-to-maturity - fair
value of $278,415
$310,673 and $302,966,
respectively 272,143 301,227 295,648
Other equity securities 17,350 12,067 15,213
Total loans and leases 1,815,490 1,579,135 1,684,379
Less: allowance for loan and
lease losses (19,433) (16,268) (16,886)
Net loans and leases 1,796,057 1,562,867 1,667,493
Premises and equipment, net 45,831 45,414 45,385
Accrued interest receivable 15,399 11,685 13,144
Goodwill 12,606 8,554 12,042
Other intangible assets, net 11,431 8,364 12,218
Other assets 76,881 74,481 77,269
Total assets $2,598,458 $2,383,360 $2,459,616
Liabilities
Noninterest-bearing deposits $416,712 $467,957 $439,277
Interest-bearing deposits 1,531,138 1,336,931 1,363,933
Total deposits 1,947,850 1,804,888 1,803,210
Short-term borrowings 356,563 279,427 380,220
Other long-term borrowings 1,896 29,246 2,158
Subordinated debentures 35,000 35,000 35,000
Accrued interest payable and other
liabilities 23,456 26,709 21,145
Total liabilities 2,364,765 2,175,270 2,241,733
Stockholders' Equity
Common stock -- par value $1.00;
shares authorized
50,000,000; shares issued and
outstanding 14,811,974,
14,623,696 and 14,793,987,
respectively 14,812 14,624 14,794
Additional paid in capital 27,349 21,019 26,599
Retained earnings 191,884 172,369 177,084
Accumulated other comprehensive
income(loss) (352) 78 (594)
Total stockholders' equity 233,693 208,090 217,883
Total liabilities and
stockholders' equity $2,598,458 $2,383,360 $2,459,616
Certain reclassifications and restatements of information previously
reported have been made to conform with current presentation.
Sandy Spring Bancorp, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
2006 2005 2006 2005
Interest income:
Interest and fees on loans and
leases $32,686 $24,423 $92,831 $67,875
Interest on loans held for sale 222 422 514 812
Interest on deposits with banks 4 32 18 58
Interest and dividends on
securities:
Taxable 4,090 2,925 10,490 9,210
Exempt from federal income taxes 2,839 3,275 8,783 10,284
Interest on federal funds sold 177 314 432 571
Total interest income 40,018 31,391 113,068 88,810
Interest expense:
Interest on deposits 10,378 5,700 26,846 14,743
Interest on short-term borrowings 4,943 2,413 13,342 6,530
Interest on long-term borrowings 575 752 1,729 2,284
Total interest expense 15,896 8,865 41,917 23,557
Net interest income 24,122 22,526 71,151 65,253
Provision for loan and lease losses 550 600 2,545 1,600
Net interest income after
provision for loan and lease
losses 23,572 21,926 68,606 63,653
Noninterest income:
Securities gains 0 1,761 1 2,601
Service charges on deposit accounts 1,904 2,050 5,702 5,705
Gains on sales of mortgage loans 718 1,205 2,049 2,825
Fees on sales of investment products 783 473 2,264 1,558
Trust and investment management fees 2,164 1,116 6,476 2,932
Insurance agency commissions 1,406 1,114 5,132 4,149
Income from bank owned life
insurance 591 570 1,711 1,684
Visa check fees 603 556 1,750 1,597
Other income 1,421 1,267 3,746 3,954
Total noninterest income 9,590 10,112 28,831 27,005
Noninterest expenses:
Salaries and employee benefits 12,622 11,373 37,823 34,116
Occupancy expense of premises 2,175 2,099 6,340 5,987
Equipment expenses 1,384 1,415 4,112 4,031
Marketing 1,160 253 1,973 947
Outside data services 872 718 2,486 2,159
Amortization of intangible assets 743 501 2,227 1,502
Other expenses 2,738 2,385 7,917 7,592
Total noninterest expenses 21,694 18,744 62,878 56,334
Income before income taxes 11,468 13,294 34,559 34,324
Income tax expense 3,346 3,827 10,002 9,204
Net income $8,122 $9,467 $24,557 $25,120
Basic net income per share $0.55 $0.65 $1.66 $1.72
Diluted net income per share 0.55 0.64 1.65 1.70
Dividends declared per share 0.22 0.21 0.66 0.62
Certain reclassifications and restatements of information previously
reported have been made to conform with current presentation.
Sandy Spring Bancorp, Inc. and Subsidiaries
Historical Trends in Quarterly Financial Data
(Dollars in thousands, except per share data) 2006
Q3 Q2 Q1
Profitability for the quarter:
Tax-equivalent interest income $41,695 $39,372 $36,619
Interest expense 15,896 14,021 12,000
Tax-equivalent net interest income 25,799 25,351 24,619
Tax-equivalent adjustment 1,677 1,499 1,442
Provision for loan and lease losses 550 1,045 950
Noninterest income 9,590 9,395 9,846
Noninterest expenses 21,694 20,828 20,356
Income before income taxes 11,468 11,374 11,717
Income tax expense 3,346 3,279 3,377
Net Income 8,122 8,095 8,340
Financial ratios:
Return on average assets 1.24% 1.27% 1.36%
Return on average equity 14.06% 14.48% 15.41%
Net interest margin 4.25% 4.30% 4.35%
Efficiency ratio - GAAP based * 64.35% 62.65% 61.64%
Efficiency ratio - traditional * 59.20% 57.81% 56.91%
Per share data:
Basic net income $0.55 $0.55 $0.56
Diluted net income $0.55 $0.54 $0.56
Dividends declared $0.22 $0.22 $0.22
Book value $15.78 $15.33 $15.06
Tangible book value $14.15 $13.66 $13.34
Average fully diluted shares 14,915,454 14,884,677 14,924,571
Noninterest income breakdown:
Securities gains $0 $1 $0
Service charges on deposit accounts 1,904 1,950 1,848
Gains on sales of mortgage loans 718 549 782
Fees on sales of investment products 783 763 718
Trust and investment management fees 2,164 2,196 2,116
Insurance agency commissions 1,406 1,618 2,108
Income from bank owned life insurance 591 567 553
Visa check fees 603 612 535
Other income 1,421 1,139 1,186
Total 9,590 9,395 9,846
Noninterest expense breakdown:
Salaries and employee benefits $12,622 $12,730 $12,471
Occupancy expense of premises 2,175 2,039 2,126
Equipment expenses 1,384 1,412 1,316
Marketing 1,160 472 341
Outside data services 872 833 781
Amortization of intangible assets 743 742 742
Other expenses 2,738 2,600 2,579
Total 21,694 20,828 20,356
* The GAAP based efficiency ratio is noninterest expenses divided by net
interest income plus noninterest income from the Consolidated Statements
of Income. The traditional, non-GAAP efficiency ratio excludes
intangible asset amortization expenses from noninterest expenses;
excludes security gains from noninterest income; and adds the tax-
equivalent adjustment to net interest income. See the Reconciliation
Table included with these Historical Trends in Quarterly Financial Data.
Sandy Spring Bancorp, Inc. and Subsidiaries
Historical Trends in Quarterly Financial Data
(Dollars in thousands, except per share data)
2005
Q4 Q3 Q2 Q1
Profitability for the quarter:
Tax-equivalent interest
income $35,150 $33,244 $30,998 $29,896
Interest expense 10,425 8,865 7,705 6,987
Tax-equivalent net
interest income 24,725 24,379 23,293 22,909
Tax-equivalent
adjustment 1,800 1,853 1,766 1,709
Provision for loan and
lease losses 1,000 600 900 100
Noninterest income 9,904 10,112 9,053 7,840
Noninterest expenses 20,860 18,744 19,153 18,437
Income before income taxes 10,969 13,294 10,527 10,503
Income tax expense 2,991 3,827 2,730 2,647
Net Income 7,978 9,467 7,797 7,856
Financial ratios:
Return on average assets 1.31% 1.58% 1.36% 1.39%
Return on average equity 14.76% 18.31% 15.63% 16.20%
Net interest margin 4.38% 4.39% 4.39% 4.39%
Efficiency ratio - GAAP
based * 63.54% 57.43% 62.63% 63.49%
Efficiency ratio -
traditional * 59.36% 55.74% 59.16% 58.38%
Per share data:
Basic net income $0.54 $0.65 $0.53 $0.54
Diluted net income $0.54 $0.64 $0.53 $0.53
Dividends declared $0.22 $0.21 $0.21 $0.20
Book value $14.73 $14.23 $13.91 $13.57
Tangible book value $13.09 $13.07 $12.72 $12.35
Average fully diluted
shares 14,886,046 14,735,318 14,719,742 14,760,551
Noninterest income
breakdown:
Securities gains $661 $1,761 $825 $15
Service charges on deposit
accounts 1,983 2,050 1,984 1,671
Gains on sales of mortgage
loans 932 1,205 889 731
Fees on sales of
investment products 551 473 640 445
Trust and investment
management fees 2,074 1,116 944 872
Insurance agency
commissions 1,160 1,114 1,224 1,811
Income from bank owned
life insurance 575 570 559 555
Visa check fees 570 556 550 491
Other income 1,398 1,267 1,438 1,249
Total 9,904 10,112 9,053 7,840
Noninterest expense
breakdown:
Salaries and employee
benefits $12,897 $11,373 $11,454 $11,289
Occupancy expense of
premises 2,066 2,099 1,964 1,924
Equipment expenses 1,379 1,415 1,294 1,322
Marketing 278 253 406 288
Outside data services 781 718 701 740
Amortization of intangible
assets 696 501 505 496
Other expenses 2,763 2,385 2,829 2,378
Total 20,860 18,744 19,153 18,437
* The GAAP based efficiency ratio is noninterest expenses divided by net
interest income plus noninterest income from the Consolidated Statements
of Income. The traditional, non-GAAP efficiency ratio excludes
intangible asset amortization expenses from noninterest expenses;
excludes security gains from noninterest income; and adds the tax-
equivalent adjustment to net interest income. See the Reconciliation
Table included with these Historical Trends in Quarterly Financial Data.
Sandy Spring Bancorp, Inc. and Subsidiaries
Historical Trends in Quarterly Financial Data
(Dollars in thousands, except per share data) 2006
Q3 Q2 Q1
Balance sheets at quarter end:
Residential mortgage loans $396,811 $386,805 $428,698
Residential construction loans 175,067 169,564 166,767
Commercial mortgage loans 505,181 461,708 425,392
Commercial construction loans 185,615 214,628 188,477
Commercial loans and leases 204,023 200,712 193,524
Consumer loans 348,793 348,547 341,490
Total loans and leases 1,815,490 1,781,964 1,744,348
Less: allowance for loan and lease
losses (19,433) (18,910) (17,860)
Net loans and leases 1,796,057 1,763,054 1,726,488
Goodwill 12,606 12,606 12,596
Other intangible assets, net 11,431 12,173 12,916
Total assets 2,598,458 2,586,353 2,499,577
Total deposits 1,947,850 1,818,347 1,839,355
Customer repurchase agreements 129,213 235,853 181,520
Total stockholders' equity 233,693 226,738 222,962
Quarterly average balance sheets:
Residential mortgage loans $405,430 $449,482 $427,609
Residential construction loans 172,873 167,632 161,649
Commercial mortgage loans 465,989 436,036 424,467
Commercial construction loans 218,798 206,419 186,606
Commercial loans and leases 199,968 196,093 188,747
Consumer loans 346,639 345,194 339,299
Total loans and leases 1,809,697 1,800,856 1,728,377
Securities 583,156 554,157 555,061
Total earning assets 2,407,185 2,367,100 2,294,665
Total assets 2,597,917 2,558,458 2,482,512
Total interest-bearing liabilities 1,934,668 1,895,652 1,821,530
Noninterest-bearing demand deposits 410,912 419,454 418,214
Total deposits 1,851,098 1,819,255 1,799,213
Customer repurchase agreements 212,123 196,359 167,620
Stockholders' equity 229,189 224,265 219,424
Capital and credit quality measures:
Average equity to average assets 8.82% 8.77% 8.84%
Loan and lease loss allowance to
loans and leases 1.07% 1.06% 1.02%
Nonperforming assets to total assets 0.15% 0.10% 0.12%
Annualized net (charge-offs)
recoveries to
average loans and leases 0.00% 0.00% 0.01%
Miscellaneous data:
Net (charge-offs) recoveries ($27) $5 $24
Nonperforming assets:
Non-accrual loans and leases 1,495 1,691 585
Loans and leases 90 days past due 2,346 988 2,473
Restructured loans and leases 0 0 0
Other real estate owned, net 0 0 0
Total nonperforming assets 3,841 2,679 3,058
Sandy Spring Bancorp, Inc. and Subsidiaries
Historical Trends in Quarterly Financial Data
(Dollars in thousands, except per share data) 2005
Q4 Q3 Q2 Q1
Balance sheets at quarter end:
Residential mortgage loans $413,324 $400,657 $393,961 $375,746
Residential construction loans 155,379 143,691 136,733 139,964
Commercial mortgage loans 415,983 410,409 390,306 395,528
Commercial construction loans 178,764 136,606 119,006 94,708
Commercial loans and leases 185,680 160,379 154,237 150,143
Consumer loans 335,249 327,393 323,537 312,725
Total loans and leases 1,684,379 1,579,135 1,517,780 1,468,814
Less: allowance for loan and
lease losses (16,886) (16,268) (15,673) (14,738)
Net loans and leases 1,667,493 1,562,867 1,502,107 1,454,076
Goodwill 12,042 8,554 8,554 8,554
Other intangible assets, net 12,218 8,364 8,865 9,370
Total assets 2,459,616 2,383,360 2,348,305 2,284,198
Total deposits 1,803,210 1,804,888 1,781,622 1,745,675
Customer repurchase agreements 170,769 158,977 143,873 121,791
Total stockholders' equity 217,883 208,090 203,294 198,709
Quarterly average balance
sheets:
Residential mortgage loans $423,805 $423,420 $401,148 $384,504
Residential construction loans 150,099 141,197 137,720 137,897
Commercial mortgage loans 407,459 394,862 393,291 389,215
Commercial construction loans 158,076 128,010 103,584 91,733
Commercial loans and leases 161,478 154,920 151,766 149,783
Consumer loans 333,671 327,495 320,276 310,421
Total loans and leases 1,634,588 1,569,904 1,507,785 1,463,553
Securities 589,552 593,102 591,610 641,960
Total earning assets 2,239,438 2,203,251 2,130,469 2,115,369
Total assets 2,421,725 2,384,327 2,307,888 2,286,209
Total interest-bearing
liabilities 1,733,626 1,696,691 1,647,365 1,660,839
Noninterest-bearing demand
deposits 452,738 458,131 440,945 415,824
Total deposits 1,809,237 1,800,171 1,751,192 1,723,667
Customer repurchase agreements 172,826 155,417 135,009 123,663
Stockholders' equity 214,489 205,138 200,047 196,659
Capital and credit quality
measures:
Average equity to average
assets 8.86% 8.60% 8.67% 8.60%
Loan and lease loss allowance
to loans and leases 1.00% 1.03% 1.03% 1.00%
Nonperforming assets to total
assets 0.06% 0.14% 0.15% 0.10%
Annualized net (charge-offs)
recoveries to
average loans and leases (0.09)% 0.00% 0.01% 0.00%
Miscellaneous data:
Net (charge-offs) recoveries ($382) ($5) $35 ($16)
Nonperforming assets:
Non-accrual loans and leases 437 1,032 661 672
Loans and leases 90 days
past due 958 2,289 2,757 1,531
Restructured loans and
leases 0 0 0 0
Other real estate owned, net 0 0 0 73
Total nonperforming assets 1,395 3,321 3,418 2,276
Sandy Spring Bancorp, Inc. and Subsidiaries
CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES
(Dollars in thousands and tax-equivalent)
Three Months Ended
September 30,
2006
Annualized
Average Average
Balances Interest Yield/Rate
Assets
Residential mortgage loans $405,430 $5,936 5.86 %
Residential construction loans 172,873 3,273 7.51
Commercial mortgage loans 465,989 8,495 7.26
Commercial construction loans 218,798 4,964 8.94
Commercial loans and leases 199,968 4,101 8.15
Consumer loans 346,639 6,140 7.03
Total loans and leases 1,809,697 32,909 7.23
Securities 583,156 8,606 5.82
Interest-bearing deposits with banks 493 4 3.45
Federal funds sold 13,839 176 5.07
TOTAL EARNING ASSETS 2,407,185 41,695 6.87 %
Less: allowance for loan and lease
losses (19,192)
Cash and due from banks 46,499
Premises and equipment, net 46,034
Other assets 117,391
Total assets $2,597,917
Liabilities and Stockholders' Equity
Interest-bearing demand deposits $219,350 $169 0.31 %
Regular savings deposits 177,759 153 0.34
Money market savings deposits 390,757 3,196 3.24
Time deposits 652,320 6,859 4.17
Total interest-bearing deposits 1,440,186 10,377 2.86
Borrowings 494,482 5,519 4.43
TOTAL INTEREST-BEARING LIABILITIES 1,934,668 15,896 3.26
Noninterest-bearing demand deposits 410,912
Other liabilities 23,148
Stockholder's equity 229,189
Total liabilities and
stockholders' equity $2,597,917
Net interest income and spread 25,799 3.61 %
Less: tax equivalent adjustment 1,677
Net interest income 24,122
Interest income/earning assets 6.87 %
Interest expense/earning assets 2.62
Net interest margin 4.25 %
* Interest income includes the effects of annualized taxable-equivalent
adjustments (reduced by the nondeductible portion of interest expense)
using the appropriate marginal federal income tax rate of 35.00% and,
where applicable, the marginal state income tax rate of 7.00% (or a
combined marginal federal and state rate of 39.55%), to increase tax-
exempt interest income to a taxable-equivalent basis. The annualized
taxable-equivalent adjustment amounts utilized in the above table to
compute yields aggregated to $6.7 million in 2006 and $7.4 million in
2005.
Sandy Spring Bancorp, Inc. and Subsidiaries
CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES
(Dollars in thousands and tax-equivalent)
Three Months Ended
September 30,
2005
Annualized
Average Average
Balances Interest Yield/Rate
Assets
Residential mortgage loans $423,420 $5,921 5.59 %
Residential construction loans 141,197 2,326 6.54
Commercial mortgage loans 394,862 6,726 6.76
Commercial construction loans 128,010 2,372 7.35
Commercial loans and leases 154,920 2,802 7.18
Consumer loans 327,495 4,697 5.69
Total loans and leases 1,569,904 24,844 6.29
Securities 593,102 8,054 5.34
Interest-bearing deposits with banks 3,953 32 3.19
Federal funds sold 36,292 314 3.46
TOTAL EARNING ASSETS 2,203,251 33,244 5.98 %
Less: allowance for loan and lease
losses (15,775)
Cash and due from banks 48,513
Premises and equipment, net 45,953
Other assets 102,385
Total assets $2,384,327
Liabilities and Stockholders' Equity
Interest-bearing demand deposits $237,273 $164 0.27 %
Regular savings deposits 216,787 212 0.39
Money market savings deposits 379,524 1,680 1.76
Time deposits 508,456 3,645 2.84
Total interest-bearing deposits 1,342,040 5,701 1.69
Borrowings 354,651 3,164 3.52
TOTAL INTEREST-BEARING LIABILITIES 1,696,691 8,865 2.07
Noninterest-bearing demand deposits 458,131
Other liabilities 24,367
Stockholder's equity 205,138
Total liabilities and
stockholders' equity $2,384,327
Net interest income and spread 24,379 3.91 %
Less: tax equivalent adjustment 1,853
Net interest income 22,526
Interest income/earning assets 5.98 %
Interest expense/earning assets 1.59
Net interest margin 4.39 %
* Interest income includes the effects of annualized taxable-equivalent
adjustments (reduced by the nondeductible portion of interest expense)
using the appropriate marginal federal income tax rate of 35.00% and,
where applicable, the marginal state income tax rate of 7.00% (or a
combined marginal federal and state rate of 39.55%), to increase tax-
exempt interest income to a taxable-equivalent basis. The annualized
taxable-equivalent adjustment amounts utilized in the above table to
compute yields aggregated to $6.7 million in 2006 and $7.4 million in
2005.
Sandy Spring Bancorp, Inc. and Subsidiaries
CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES
(Dollars in thousands and tax-equivalent)
Nine Months Ended
September 30,
2006
Annualized
Average Average
Balances Interest Yield/Rate
Assets
Residential mortgage loans $427,426 $18,527 5.78 %
Residential construction loans 167,426 9,153 7.31
Commercial mortgage loans 442,316 23,695 7.16
Commercial construction loans 204,059 13,239 8.67
Commercial loans and leases 194,977 11,648 7.98
Consumer loans 343,737 17,083 6.64
Total loans and leases 1,779,941 93,345 7.01
Securities 564,228 23,891 5.67
Interest-bearing deposits with banks 642 18 3.81
Federal funds sold 11,918 432 4.85
TOTAL EARNING ASSETS 2,356,729 117,686 6.68 %
Less: allowance for loan and lease
losses (18,325)
Cash and due from banks 46,261
Premises and equipment, net 45,788
Other assets 116,217
Total assets $2,546,670
Liabilities and Stockholders' Equity
Interest-bearing demand deposits $229,629 497 0.29 %
Regular savings deposits 189,042 556 0.39
Money market savings deposits 375,259 8,102 2.89
Time deposits 613,283 17,691 3.86
Total interest-bearing deposits 1,407,213 26,846 2.55
Borrowings 477,152 15,071 4.22
TOTAL INTEREST-BEARING LIABILITIES 1,884,365 41,917 2.97
Noninterest-bearing demand deposits 416,167
Other liabilities 21,810
Stockholder's equity 224,328
Total liabilities and
stockholders' equity $2,546,670
Net interest income and spread 75,769 3.71 %
Less: tax equivalent adjustment 4,618
Net interest income 71,151
Interest income/earning assets 6.68 %
Interest expense/earning assets 2.38
Net interest margin 4.30 %
* Interest income includes the effects of annualized taxable-equivalent
adjustments (reduced by the nondeductible portion of interest expense)
using the appropriate marginal federal income tax rate of 35.00% and,
where applicable, the marginal state income tax rate of 7.00% (or a
combined marginal federal and state rate of 39.55%), to increase tax-
exempt interest income to a taxable-equivalent basis. The annualized
taxable-equivalent adjustment amounts utilized in the above table to
compute yields aggregated to $6.2 million in 2006 and $7.1 million in
2005.
Sandy Spring Bancorp, Inc. and Subsidiaries
CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES
(Dollars in thousands and tax-equivalent)
Nine Months Ended
September 30,
2005
Annualized
Average Average
Balances Interest Yield/Rate
Assets
Residential mortgage loans $403,167 $16,647 5.51 %
Residential construction loans 138,950 6,466 6.22
Commercial mortgage loans 392,477 19,263 6.56
Commercial construction loans 107,909 5,599 6.94
Commercial loans and leases 152,175 7,906 6.94
Consumer loans 320,118 12,806 5.35
Total loans and leases 1,514,796 68,687 6.06
Securities 608,712 24,822 5.45
Interest-bearing deposits with banks 2,603 58 2.96
Federal funds sold 24,566 571 3.10
TOTAL EARNING ASSETS 2,150,677 94,138 5.85 %
Less: allowance for loan and lease
losses (15,163)
Cash and due from banks 46,104
Premises and equipment, net 44,688
Other assets 102,279
Total assets $2,328,585
Liabilities and Stockholders' Equity
Interest-bearing demand deposits $238,118 471 0.26 %
Regular savings deposits 220,055 572 0.35
Money market savings deposits 376,951 4,195 1.49
Time deposits 485,045 9,506 2.62
Total interest-bearing deposits 1,320,169 14,744 1.49
Borrowings 348,261 8,813 3.36
TOTAL INTEREST-BEARING LIABILITIES 1,668,430 23,557 1.88
Noninterest-bearing demand deposits 438,455
Other liabilities 21,044
Stockholder's equity 200,656
Total liabilities and
stockholders' equity $2,328,585
Net interest income and spread 70,581 3.97 %
Less: tax equivalent adjustment 5,328
Net interest income 65,253
Interest income/earning assets 5.85 %
Interest expense/earning assets 1.46
Net interest margin 4.39 %
* Interest income includes the effects of annualized taxable-equivalent
adjustments (reduced by the nondeductible portion of interest expense)
using the appropriate marginal federal income tax rate of 35.00% and,
where applicable, the marginal state income tax rate of 7.00% (or a
combined marginal federal and state rate of 39.55%), to increase tax-
exempt interest income to a taxable-equivalent basis. The annualized
taxable-equivalent adjustment amounts utilized in the above table to
compute yields aggregated to $6.2 million in 2006 and $7.1 million in
2005.
AP Archive: http://photoarchive.ap.org/
PRN Photo Desk,
