SEGMENT REPORTING

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

SEGMENT REPORTING

Note 23 - Segment Reporting

Currently, the Company conducts business in three operating segments—Community Banking, Insurance and Investment Management. Each of the operating segments is a strategic business unit that offers different products and services. The Insurance and Investment Management segments were businesses that were acquired in separate transactions where management of acquisition was retained. The accounting policies of the segments are the same as those of the Company. However, the segment data reflect inter-segment transactions and balances.

The Community Banking segment is conducted through Sandy Spring Bank and involves delivering a broad range of financial products and services, including various loan and deposit products to both individuals and businesses. Parent company income is included in the Community Banking segment, as the majority of effort of these functions is related to this segment. Major revenue sources include net interest income, gains on sales of mortgage loans, trust income, fees on sales of investment products and service charges on deposit accounts. Expenses include personnel, occupancy, marketing, equipment and other expenses. Non-cash charges associated with amortization of intangibles related to the acquired entities was not significant for the years ended December 31, 2016, 2015and 2014, respectively.

The Insurance segment is conducted through Sandy Spring Insurance Corporation, a subsidiary of the Bank, and offers annuities as an alternative to traditional deposit accounts. Sandy Spring Insurance Corporation operates Sandy Spring Insurance, a general insurance agency located in Annapolis, Maryland, and Neff and Associates, located in Ocean City, Maryland. Major sources ofrevenue are insurance commissions from commercial lines, personal lines, and medical liability lines. Expenses include personnel and support charges. Non-cash charges associated with amortization of intangibles related to the acquired entities was not significant for the years ended December 31, 2016, 2015and 2014, respectively.

The Investment Management segment is conducted through West Financial Services, Inc., a subsidiary of the Bank. This asset management and financial planning firm, located in McLean, Virginia, provides comprehensive investment management and financial planning to individuals, families, small businesses and associations including cash flow analysis, investment review, tax planning, retirement planning, insurance analysis and estate planning. West Financial currently has approximately $1.2billion in assets under management. Major revenue sources include non-interest income earned on the above services. Expenses include personnel and support charges. Non-cash charges associated with amortization of intangibles related to the acquired entities was not significant for the years ended December 31, 2016, 2015and 2014, respectively.

Information for the operating segments and reconciliation of the information to the consolidated financial statements for the years ended December 31 is presented in the following tables:

	2016
	Community				Investment		Inter-Segment
(In thousands)	Banking		Insurance		Mgmt.		Elimination		Total
Interest income	$	170,556	$	3	$	5	$	(8)	$	170,556
Interest expense		21,012		-		-		(8)		21,004
Provision for loan losses		5,546		-		-		-		5,546
Non-interest income		38,769		5,418		7,568		(713)		51,042
Non-interest expenses		114,368		5,097		4,306		(713)		123,058
Income before income taxes		68,399		324		3,267		-		71,990
Income tax expense		22,337		130		1,273		-		23,740
Net income	$	46,062	$	194	$	1,994	$	-	$	48,250
Assets	$	5,092,283	$	7,732	$	13,650	$	(22,282)	$	5,091,383

	2015
	Community				Investment		Inter-Segment
(In thousands)	Banking		Insurance		Mgmt.		Elimination		Total
Interest income	$	158,313	$	1	$	4	$	(6)	$	158,312
Interest expense		20,119		-		-		(6)		20,113
Provision for loan losses		5,371		-		-		-		5,371
Non-interest income		53,398		5,516		7,104		(16,117)		49,901
Non-interest expenses		122,183		5,189		4,092		(16,117)		115,347
Income before income taxes		64,038		328		3,016		-		67,382
Income tax expense		20,710		141		1,176		-		22,027
Net income	$	43,328	$	187	$	1,840	$	-	$	45,355
Assets	$	4,656,573	$	5,542	$	12,658	$	(19,393)	$	4,655,380

	2014
	Community				Investment		Inter-Segment
(In thousands)	Banking		Insurance		Mgmt.		Elimination		Total
Interest income	$	148,366	$	6	$	11	$	(17)	$	148,366
Interest expense		18,835		-		-		(17)		18,818
Provision (credit) for loan losses		(163)		-		-		-		(163)
Non-interest income		38,388		5,386		6,798		(3,701)		46,871
Non-interest expenses		115,577		5,290		3,634		(3,701)		120,800
Income before income taxes		52,505		102		3,175		-		55,782
Income tax expense		16,300		43		1,239		-		17,582
Net income	$	36,205	$	59	$	1,936	$	-	$	38,200
Assets	$	4,399,133	$	5,842	$	11,913	$	(19,756)	$	4,397,132