EX-99 2 b407795_ex99.txt NEWS RELEASE Exhibit 99 SANDY SPRING BANCORP NEWS RELEASE FOR IMMEDIATE RELEASE SANDY SPRING BANCORP REPORTS 22% INCREASE IN SECOND QUARTER NET INCOME AND AGREES TO ACQUIRE WEST FINANCIAL SERVICES, INC. OLNEY, MARYLAND, July 19, 2005 -- Sandy Spring Bancorp, Inc., (Nasdaq-SASR) the parent company of Sandy Spring Bank, today announced net income for the second quarter of 2005 of $7.8 million ($.53 per diluted share) compared to $6.4 million ($.43 per diluted share) for the second quarter of 2004, a 22% increase. Net income for the six-month period ending June 30, 2005 totaled $15.7 million ($1.06 per diluted share) compared to $13.7 million ($.93 per diluted share) for the prior year period, a 14% increase. Sandy Spring Bancorp also announced it has reached an agreement to acquire West Financial Services, Inc., an asset management and financial planning company located in McLean, Virginia. The company was founded in 1982, and currently has over $550 million in assets under management. "It is rewarding to see our company producing improved net income and returns on equity and assets," said Hunter R. Hollar, President & Chief Executive Officer of Sandy Spring Bancorp. "We intend to continue to emphasize our commitment to managing each client interaction to produce a consistently satisfying set of rewarding experiences. That should further drive our trends back into the high-performance league as we move through the balance of the year." "One of our goals has been to diversify our sources of noninterest income," said Hollar. "West Financial Services' expertise and outstanding reputation will enhance our investment capabilities. This opportunity allows us to broaden our market as well as expand the depth of investment resources and types of solutions we can offer our clients." The transaction is expected to be completed by October 31, 2005, pending regulatory approval. The company declined to disclose the terms of the acquisition. "Approximately 20% of our client base is located in Maryland and this opportunity to couple our mission of excellence with Sandy Spring Bank's exceptional reputation and service will allow us to aggressively compete in this market segment," said Ronald L. West, President and Founder. The company will continue to operate under the name West Financial Services, Inc. and Ronald L. West, President and Founder, will continue to lead the company as Chief Executive Officer. West has been selected as one of the "BEST FINANCIAL ADVISORS IN WASHINGTON D.C." by Washingtonian Magazine. The majority of West Financial Services' 18-person employee base are CERTIFIED FINANCIAL PLANNER(TM) Professionals; Chartered Financial Analyst(R) Charterholders (CFA(R)); Certified Employee Benefit Specialists (CEBS); and Certified Public Accountants (CPA). Certified Financial Planner Board of Standards Inc. owns the certification marks CFP(R), CERTIFIED FINANCIAL PLANNER(TM) and CFP (with flame logo)(R) in the U.S., which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements. Sandy Spring Bancorp's return on average stockholders' equity was 15.63% for the second quarter of 2005, compared to 13.07% for the same period in the prior year. Return on average assets for the second quarter of 2005 was 1.36%, compared to 1.08% for the second quarter of 2004. For the first six months of 2005, return on average stockholders' equity was 15.91% compared to 14.03% for the first six months of 2004. Return on average assets for the first six months of 2005 was 1.37% compared to 1.17% for the first six months of 2004. Comparing June 30, 2005 balances to June 30, 2004, total assets declined 3% to $2.3 billion due mainly to the balance sheet restructuring completed at the end of 2004. Total deposits increased 6% to $1.8 billion, while total loans and leases increased 20% to $1.5 billion compared to the prior year. During the same period, stockholders' equity increased 4% to $203 million or 8.7% of total assets. Due to continued growth in the loan portfolio, the provision for loan and lease losses totaled $.9 million for the second quarter of 2005 compared to no provision in the second quarter of 2004. The provision for loan and lease losses totaled $1.0 million for the first six months of 2005 compared to no provision in the same period in 2004. The allowance for loan and lease losses represented 1.03% of outstanding loans at June 30, 2005. The Company's management will host a conference call to discuss its second 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 www.sandyspringbank.com. DETAILED REVIEW OF FINANCIAL RESULTS Comparing the second quarter of 2005 and 2004, net interest income increased by $3.8 million, or 21%, due primarily to an improved net interest margin. The net interest margin increased to 4.39% in 2005 from 3.56% in 2004 due primarily to increased loan volume and active management of deposit rates together with the early payoff of FHLB advances in the fourth quarter of 2004. Noninterest income increased $.8 million or 9% in the second quarter of 2005 as compared to 2004. On a non-GAAP basis, noninterest income, excluding the effect of securities gains of $.8 million in 2005 and $.1 million in 2004, increased $.1 million or 1%. This increase was due primarily to an increase of 19% in Insurance agency commissions over 2004 due in part to the acquisition of the Wolfe & Reichelt Insurance Agency in December 2004. In addition, Visa(R) check fees increased 11% reflecting a growing volume of electronic checking transactions. These increases were somewhat offset by a 14% decline in gains on sales of mortgage loans due to lower refinancing volumes. Noninterest expenses were $19.2 million in the second quarter of 2005 compared to $18.1 million in 2004, an increase of $1.1 million or 6%. This increase primarily resulted from increases in salaries and benefits due largely to higher incentive compensation and benefits expense and increased occupancy expenses, due mainly to the opening of the Bank's Columbia Center office facility in the second quarter of 2004 and new branches opened in 2005. These increases were partially offset by a 16% decrease in marketing costs due mainly to advertising initiatives conducted in 2004 that were not continued in 2005. Other noninterest expenses also declined 6% due largely to declines in legal and consulting fees. Comparing the first six months of 2005 and 2004, net interest income increased by $6.4 million or 18%, due primarily to increased loan volume and the early payoff of FHLB advances mentioned above which resulted in an increase in the net interest margin to 4.39% for the first six months of 2005 compared to 3.68% for the same period in 2004. Noninterest income was $16.9 million for the six months ended June 30, 2005 versus $15.9 million for the same period in 2004, an increase of $1.0 million or 6%. On a non-GAAP basis, noninterest income, excluding the effect of securities gains of $.8 million in 2005 and $.3 million in 2004, increased $.5 million or 3%. This increase was due primarily to increases of 41% in insurance agency commissions and 13% in Visa(R) check fees. These increases were largely offset by a decrease of 10% in gains on sales of mortgage loans and a decline of 16% in fees on the sale of investment products. Noninterest expenses were $37.6 million for the first six months of 2005 compared to $34.8 million for the same period in 2004, an 8% increase. This increase was due mainly to the same expense growth factors mentioned above. ABOUT SANDY SPRING BANCORP/SANDY SPRING BANK With $2.3 billion in assets, Sandy Spring Bancorp is the holding company for Sandy Spring Bank and its principal subsidiaries, Sandy Spring Insurance Corporation and The Equipment Leasing Company. 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 31 community offices and 46 ATMs located in Anne Arundel, Carroll, Frederick, Howard, Montgomery, and Prince George's counties in Maryland. Visit www.sandyspringbank.com for more information. For additional information or questions, please contact: Hunter R. Hollar, President & Chief Executive Officer, or Philip J. Mantua, Executive V.P. & Chief Financial Officer Sandy Spring Bancorp 17801 Georgia Avenue Olney, Maryland 20832 1-800-399-5919 E-mail: HHollar@sandyspringbank.com PMantua@sandyspringbank.com Web site: www.sandyspringbank.com 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 Six Months Ended June 30, June 30, ------------------------------ % ------------------------------ % 2005 2004 Change 2005 2004 Change ----------------------------------------------------------------------------------------------------------------------- ---------- PROFITABILITY FOR THE PERIOD: Net interest income $21,527 $17,769 21 $42,727 $36,308 18 Provision for loan and lease losses 900 - N/A 1,000 - N/A Noninterest income 9,053 8,279 9 16,893 15,869 6 Noninterest expenses 19,153 18,100 6 37,590 34,814 8 Income before income taxes 10,527 7,948 32 21,030 17,363 21 Net income 7,797 6,393 22 $15,653 $13,694 14 Return on average assets 1.36% 1.08% 1.37% 1.17% Return on average equity 15.63% 13.07% 15.91% 14.03% Net interest margin 4.39% 3.56% 4.39% 3.68% Efficiency ratio - GAAP based * 62.63% 69.49% 63.05% 66.72% Efficiency ratio - traditional * 59.16% 63.22% 58.77% 60.73% PER SHARE DATA: Basic net income $0.53 $0.44 20 $1.07 $0.95 13 Diluted net income 0.53 0.43 23 1.06 0.93 14 Dividends declared 0.21 0.19 11 0.41 0.38 8 Book value 13.91 13.51 3 13.91 13.51 3 Tangible book value 12.72 12.26 4 12.72 12.26 4 Average fully diluted shares 14,719,742 14,726,117 14,740,323 14,727,920 AT PERIOD-END: Assets $2,348,305 $2,424,199 (3) $2,348,305 $2,424,199 (3) Deposits 1,781,622 1,681,552 6 1,781,622 1,681,552 6 Loans and leases 1,517,780 1,267,346 20 1,517,780 1,267,346 20 Securities 577,905 912,208 (37) 577,905 912,208 (37) Stockholders' equity 203,294 196,090 4 203,294 196,090 4 CAPITAL AND CREDIT QUALITY RATIOS: Average equity to average assets 8.67% 8.25% 8.62% 8.32% Allowance for loan and lease losses to loans and leases 1.03% 1.16% 1.03% 1.16% Nonperforming assets to total assets 0.15% 0.12% 0.15% 0.12% Annualized net (charge-offs) recoveries to average loans and leases 0.01% -0.04% 0.00% -0.02%
* 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 income from an early termination of a sublease in 2003 and 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 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 Six Months Ended June 30, June 30, ------------------------------------------- -------------------------------- 2005 2004 2005 2004 -------------------- -------------------- --------------- --------------- Noninterest expenses-GAAP based $19,153 $18,100 $37,590 $34,814 Net interest income plus noninterest income- GAAP based 30,580 26,048 59,620 52,177 Efficiency ratio-GAAP based 62.63% 69.49% 63.05% 66.72% ==================== ==================== =============== =============== Noninterest expenses-GAAP based $19,153 $18,100 $37,590 $34,814 Less non-GAAP adjustment: Amortization of intangible assets 505 487 1,001 973 -------------------- -------------------- --------------- --------------- Noninterest expenses-traditional ratio 18,648 17,613 36,589 33,841 Net interest income plus noninterest income- GAAP based 30,580 26,048 59,620 52,177 Plus non-GAAP adjustment: Tax-equivalency 1,766 1,919 3,475 3,884 Less non-GAAP adjustments: Securities gains 825 109 840 337 Income from an early termination of a sublease 0 0 0 0 -------------------- -------------------- --------------- --------------- Net interest income plus noninterest income - traditional ratio 31,521 27,858 62,255 55,724 Efficiency ratio - traditional 59.16% 63.22% 58.77% 60.73% ==================== ==================== =============== ===============
Sandy Spring Bancorp, Inc. and Subsidiaries CONSOLIDATED BALANCE SHEETS (Dollars in thousands, except per share data)
June 30, December 31, ------------------------------------------ -------------------- 2005 2004 2004 ----------------------------------------------------------------------------------------------------------- -------------------- ASSETS Cash and due from banks $54,258 $41,399 $43,728 Federal funds sold 33,934 67,754 5,467 Interest-bearing deposits with banks 9,120 736 610 Residential mortgage loans held for sale 20,052 12,988 16,211 Investments available-for-sale (at fair value) 262,792 569,908 346,903 Investments held-to-maturity - fair value of $311,636, $322,896, and $312,661, respectively 302,362 322,448 305,293 Other equity securities 12,751 19,852 13,912 Total loans and leases 1,517,780 1,267,346 1,445,525 Less: allowance for loan and lease losses (15,673) (14,743) (14,654) -------------------- -------------------- -------------------- Net loans and leases 1,502,107 1,252,603 1,430,871 Premises and equipment, net 45,678 40,498 42,054 Accrued interest receivable 11,770 13,025 11,674 Goodwill 8,554 7,642 7,335 Other intangible assets, net 8,865 10,473 9,866 Other assets 76,062 64,873 75,419 -------------------- -------------------- -------------------- Total assets $2,348,305 $2,424,199 $2,309,343 ==================== ==================== ==================== LIABILITIES Noninterest-bearing deposits $467,630 $417,400 $423,868 Interest-bearing deposits 1,313,992 1,264,152 1,308,633 -------------------- -------------------- -------------------- Total deposits 1,781,622 1,681,552 1,732,501 Short-term borrowings 279,424 384,436 231,927 Subordinated debentures 35,000 35,000 35,000 Other long-term borrowings 29,333 114,883 94,608 Accrued interest payable and other liabilities 19,632 12,238 20,224 -------------------- -------------------- -------------------- Total liabilities 2,145,011 2,228,109 2,114,260 STOCKHOLDERS' EQUITY Common stock -- par value $1.00; shares authorized 50,000,000; shares issued and outstanding 14,614,739 14,517,640 and 14,628,511, respectively 14,615 14,518 14,629 Additional paid in capital 20,815 19,511 21,522 Retained earnings 165,970 161,459 156,315 Accumulated other comprehensive income 1,894 602 2,617 -------------------- -------------------- -------------------- Total stockholders' equity 203,294 196,090 195,083 -------------------- -------------------- -------------------- Total liabilities and stockholders' equity $2,348,305 $2,424,199 $2,309,343 ==================== ==================== ====================
Certain reclassifications 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 Six Months Ended June 30, June 30, ------------------------------------------ ------------------------------- 2005 2004 2005 2004 -------------------- ------------------- -------------- -------------- Interest income: Interest and fees on loans and leases $22,411 $16,826 $43,452 $33,195 Interest on loans held for sale 223 212 390 350 Interest on deposits with banks 22 2 26 5 Interest and dividends on securities: Taxable 2,957 5,509 6,285 12,065 Exempt from federal income taxes 3,415 3,515 7,009 7,102 Interest on federal funds sold 204 88 257 147 -------------------- ------------------- -------------- -------------- Total interest income 29,232 26,152 57,419 52,864 Interest expense: Interest on deposits 4,855 2,994 9,043 5,724 Interest on short-term borrowings 2,099 3,699 4,117 7,450 Interest on long-term borrowings 751 1,690 1,532 3,382 -------------------- ------------------- -------------- -------------- Total interest expense 7,705 8,383 14,692 16,556 -------------------- ------------------- -------------- -------------- Net interest income 21,527 17,769 42,727 36,308 Provision for loan and lease losses 900 0 1,000 0 -------------------- ------------------- -------------- -------------- Net interest income after provision for loan and lease losses 20,627 17,769 41,727 36,308 Noninterest income: Securities gains (losses) 825 109 840 337 Service charges on deposit accounts 1,984 1,881 3,655 3,749 Gains on sales of mortgage loans 889 1,028 1,620 1,797 Fees on sales of investment products 640 666 1,085 1,295 Trust department income 944 984 1,816 1,738 Insurance agency commissions 1,224 1,030 3,035 2,151 Income from bank owned life insurance 559 558 1,114 1,132 Visa Check Fees 550 497 1,041 921 Other income 1,438 1,526 2,687 2,749 -------------------- ------------------- -------------- -------------- Total noninterest income 9,053 8,279 16,893 15,869 Noninterest expenses: Salaries and employee benefits 11,454 10,230 22,743 20,107 Occupancy expense of premises 1,964 1,815 3,888 3,443 Equipment expenses 1,294 1,324 2,616 2,514 Marketing 406 482 694 995 Outside data services 701 766 1,441 1,487 Amortization of intangible assets 505 487 1,001 973 Other expenses 2,829 2,996 5,207 5,295 -------------------- ------------------- -------------- -------------- Total noninterest expenses 19,153 18,100 37,590 34,814 -------------------- ------------------- -------------- -------------- Income before income taxes 10,527 7,948 21,030 17,363 Income tax expense 2,730 1,555 5,377 3,669 -------------------- ------------------- -------------- -------------- Net income $7,797 $6,393 $15,653 $13,694 ==================== =================== ============== ============== Basic net income per share $0.53 $0.44 $1.07 $0.95 Diluted net income per share 0.53 0.43 1.06 0.93 Dividends declared per share 0.21 0.19 0.41 0.38
Certain reclassifications of information previously reported have been made to conform with current presentation. Sandy Spring Bancorp, Inc. and Subsidiaries HISTORICAL TRENDS IN QUARTERLY FINANCIAL DATA
2005 2004 ---------------------------- ------------------------------------------------------ (Dollars in thousands, except per share data) Q2 Q1 Q4 Q3 Q2 Q1 ----------------------------------------------------------------------------------------------------------------------------------- PROFITABILITY FOR THE QUARTER: Tax-equivalent interest income $30,998 $29,896 $30,614 $29,776 $28,070 $28,677 Interest expense 7,705 6,987 8,890 9,322 8,383 8,173 Tax-equivalent net interest income 23,293 22,909 21,724 20,454 19,687 20,504 Tax-equivalent adjustment 1,766 1,709 2,097 2,175 1,919 1,965 Provision for credit losses 900 100 0 0 0 0 Noninterest income 9,053 7,840 7,628 7,452 8,279 7,590 Noninterest expenses 19,153 18,437 39,778 17,883 18,099 16,714 Income before income taxes 10,527 10,503 (12,523) 7,848 7,948 9,415 Income tax expense 2,730 2,647 (6,779) 1,431 1,555 2,114 Net Income 7,797 7,856 (5,744) 6,417 6,393 7,301 ================================================================================================================================== FINANCIAL RATIOS: Return on average assets 1.36% 1.39% -0.94% 1.03% 1.08% 1.26% Return on average equity 15.63% 16.20% -11.45% 12.89% 13.07% 15.00% Net interest margin 4.39% 4.39% 3.80% 3.54% 3.56% 3.81% Efficiency ratio - GAAP based * 62.63% 63.49% 145.95% 69.50% 69.49% 63.97% Efficiency ratio - traditional * 59.16% 58.38% 67.12% 62.65% 63.22% 58.24% ================================================================================================================================== PER SHARE DATA: Basic net income $0.53 $0.54 ($0.40) $0.44 $0.44 $0.51 Diluted net income $0.53 $0.53 ($0.39) $0.44 $0.43 $0.50 Dividends declared $0.21 $0.20 $0.20 $0.20 $0.19 $0.19 Book value $13.91 $13.57 $13.34 $13.92 $13.51 $13.76 Tangible book value $12.72 $12.35 $12.16 $12.70 $12.26 $12.48 Average fully diluted shares 14,719,742 14,760,551 14,720,013 14,673,756 14,726,117 14,725,261 ================================================================================================================================== NONINTEREST INCOME BREAKDOWN: Securities gains (losses) $825 $15 $65 $138 $109 $228 Service charges on deposit accounts 1,984 1,671 1,846 1,886 1,881 1,868 Gains on sales of mortgage loans 889 731 772 714 1,028 769 Fees on sales of investment products 640 445 702 475 666 629 Trust department income 944 872 801 813 984 754 Insurance agency commissions 1,224 1,811 1,040 944 1,030 1,121 Income from bank owned life insurance 559 555 560 556 557 574 Visa Check Fees 550 491 537 498 497 424 Other income 1,438 1,249 1,305 1,428 1,527 1,223 Total 9,053 7,840 7,628 7,452 8,279 7,590 ================================================================================================================================== NONINTEREST EXPENSE BREAKDOWN: Salaries and employee benefits $11,454 $11,289 $11,133 $10,295 $10,229 $9,877 Occupancy expense of premises 1,964 1,924 1,925 1,861 1,815 1,628 Equipment expenses 1,294 1,322 1,534 1,380 1,324 1,190 Marketing 406 288 337 385 482 513 Outside data services 701 740 722 697 766 721
* 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; and securities 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
2005 2004 ---------------------------- ----------------------------------------------------- (Dollars in thousands, except per share data) Q2 Q1 Q4 Q3 Q2 Q1 ----------------------------------------------------------------------------------------------------------------------------------- NONINTEREST EXPENSE BREAKDOWN (CONTINUED): Amortization of intangible assets $505 $496 491 486 487 $486 Goodwill impairment loss 0 0 1,265 0 0 $0 Other expenses 2,829 2,378 22,371 2,779 2,996 2,299 Total 19,153 18,437 39,778 17,883 18,099 16,714 ================================================================================================================================== BALANCE SHEETS AT QUARTER END: Residential mortgage loans $393,961 $375,746 $371,924 $365,352 $343,176 $337,850 Residential construction loans 136,733 139,964 137,880 126,338 113,382 103,292 Commercial mortgage loans 390,306 395,528 386,911 372,790 329,894 322,754 Commercial construction loans 119,006 94,708 88,974 62,436 55,563 52,162 Commercial loans and leases 154,237 150,143 150,734 138,741 140,560 125,527 Consumer loans 323,537 312,725 309,102 299,826 284,771 260,644 Total loans and leases 1,517,780 1,468,814 1,445,525 1,365,483 1,267,346 1,202,229 Less: allowance for credit losses (15,673) (14,738) (14,654) (14,792) (14,743) (14,875) Net loans and leases 1,502,107 1,454,076 1,430,871 1,350,691 1,252,603 1,187,354 Goodwill 8,554 8,554 7,335 7,642 7,642 7,642 Other intangible assets, net 8,865 9,370 9,866 9,987 10,473 10,959 Total assets 2,348,305 2,284,198 2,309,343 2,506,302 2,424,199 2,371,572 Total deposits 1,781,622 1,745,675 1,732,501 1,709,642 1,681,552 1,618,591 Total stockholders' equity 203,294 198,709 195,083 201,737 196,090 199,615 ================================================================================================================================== QUARTERLY AVERAGE BALANCE SHEETS: Residential mortgage loans $401,148 $384,504 $378,347 $362,170 $355,676 $346,545 Residential construction loans 137,720 137,897 135,322 119,989 108,118 93,722 Commercial mortgage loans 393,291 389,215 379,857 347,451 327,441 316,768 Commercial construction loans 103,584 91,733 71,930 61,771 55,234 51,519 Commercial loans and leases 151,766 149,783 139,165 137,321 134,627 127,327 Consumer loans 320,276 310,421 303,639 293,025 268,861 251,411 Total loans and leases 1,507,785 1,463,553 1,408,260 1,321,727 1,249,957 1,187,292 Securities 591,610 641,960 801,871 938,448 933,253 954,822 Total earning assets 2,130,469 2,115,369 2,272,437 2,299,895 2,220,656 2,167,641 Total assets 2,307,888 2,286,209 2,441,129 2,466,535 2,384,929 2,329,107 Total interest-bearing liabilities 1,647,365 1,660,839 1,805,091 1,844,996 1,775,867 1,751,225 Noninterest-bearing demand deposits 440,945 415,824 419,723 405,647 392,387 360,341 Total deposits 1,751,192 1,723,667 1,727,800 1,684,328 1,634,340 1,561,666 Stockholders' equity 200,047 196,659 199,626 198,030 196,719 195,730 ================================================================================================================================== CAPITAL AND CREDIT QUALITY MEASURES: Average equity to average assets 8.67% 8.60% 8.18% 8.03% 8.25% 8.40% Credit loss allowance to loans and leases 1.03% 1.00% 1.01% 1.08% 1.16% 1.24% Nonperforming assets to total assets 0.15% 0.10% 0.08% 0.09% 0.12% 0.14% Annualized net (charge-offs) recoveries to average loans and leases 0.01% 0.00% 0.04% (0.01)% 0.04% 0.00% ================================================================================================================================== MISCELLANEOUS DATA: Net recoveries (charge-offs) $35 ($16) $138 ($48) $131 $5 Nonperforming assets: Non-accrual loans and leases 661 672 746 848 674 802 Loans and leases 90 days past due 2,757 1,531 1,043 1,340 2,316 2,492 Restructured loans and leases 0 0 0 0 0 0 Other real estate owned, net 0 73 0 0 0 77 Total nonperforming assets 3,418 2,276 1,789 2,188 2,990 3,371
Certain reclassifications of information currently reported have been made to conform to current presentation. Sandy Spring Bancorp, Inc. and Subsidiaries CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES (Dollars in thousands and tax-equivalent)
Three Months Ended June 30, ---------------------------------------------------------------------------------- 2005 2004 -------------------------------------- --------------------------------------- AVERAGE ANNUALIZED YIELD/ Average Annualized Yield/ BALANCES INTEREST RATE Balance Interest Rate ---------------- ------------- ------- ---------------- ------------- -------- ASSETS Residential mortgage loans $401,148 $21,984 5.48 % $355,676 $18,946 5.33 % Residential construction loans 137,720 8,602 6.25 108,118 4,886 4.52 Commercial mortgage loans 393,291 25,587 6.51 327,441 20,900 6.38 Commercial construction loans 103,584 7,129 6.88 55,234 3,151 5.70 Commercial loans and leases 151,766 10,567 6.96 134,627 8,576 6.37 Consumer loans 320,276 16,852 5.26 268,861 11,952 4.45 ---------------- ------------- ---------------- ------------- Total loans and leases 1,507,785 90,721 6.02 1,249,957 68,411 5.47 Securities 591,610 32,620 5.51 933,253 43,785 4.69 Interest-bearing deposits with banks 2,996 86 2.87 836 11 1.32 Federal funds sold 28,078 816 2.91 36,610 354 0.97 ---------------- ------------- ---------------- ------------- TOTAL EARNING ASSETS 2,130,469 124,243 5.83 % 2,220,656 112,561 5.07 % Less: allowance for credit losses (15,037) (14,850) Cash and due from banks 46,358 42,294 Premises and equipment, net 44,951 40,303 Other assets 101,147 96,526 ---------------- ---------------- Total assets $2,307,888 $2,384,929 ================ ================ LIABILITIES AND STOCKHOLDERS' EQUITY Interest-bearing demand deposits $239,446 $640 0.27 % $230,522 $696 0.30 % Regular savings deposits 216,242 726 0.34 209,220 777 0.37 Money market savings deposits 375,803 5,748 1.53 368,837 2,051 0.56 Time deposits 478,756 12,359 2.58 433,374 8,521 1.97 ---------------- ------------- ---------------- ------------- Total interest-bearing deposits 1,310,247 19,473 1.49 1,241,953 12,045 0.97 Borrowings 337,118 11,341 3.36 533,914 21,380 4.00 ---------------- ------------- ---------------- ------------- TOTAL INTEREST-BEARING LIABILITIES 1,647,365 30,814 1.87 1,775,867 33,425 1.88 ------------- ------------- -------- Net interest income and spread* $93,429 3.96 % $79,136 3.19 % ============= ======= ============= ======== Noninterest-bearing demand deposits 440,945 392,387 Other liabilities 19,531 19,956 Stockholder's equity 200,047 196,719 ---------------- ---------------- Total liabilities and stockholders' equity $2,307,888 $2,384,929 ================ ================ Interest income/earning assets 5.83 % 5.07 % Interest expense/earning assets 1.45 1.51 ------- -------- Net interest margin 4.39 % 3.56 % ======= ========
* 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 $7,083,000 for the three months ended June 30, 2005 and $7,718,000 for the three months ended June 30, 2004. Sandy Spring Bancorp, Inc. and Subsidiaries CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES (Dollars in thousands and tax-equivalent)
Six Months Ended June 30, ---------------------------------------------------------------------------- 2005 2004 ------------------------------------- ------------------------------------ AVERAGE ANNUALIZED YIELD/ Average Annualized Yield/ BALANCES INTEREST RATE Balance Interest Rate ------------- ----------- --------- ------------- ------------- -------- ASSETS Residential mortgage loans $392,872 $21,450 5.46 % $351,111 $18,865 5.37 % Residential construction loans 137,808 8,349 6.06 100,920 4,594 4.55 Commercial mortgage loans 391,265 25,282 6.46 322,104 20,695 6.42 Commercial construction loans 97,691 6,506 6.66 53,377 3,053 5.72 Commercial loans and leases 150,780 10,279 6.82 130,977 8,347 6.37 Consumer loans 316,369 16,352 5.17 260,136 11,792 4.53 ------------- ----------- ------------- ------------- Total loans and leases 1,486,785 88,218 5.93 1,218,625 67,346 5.53 Securities 616,646 33,906 5.50 944,038 46,157 4.89 Interest-bearing deposits with banks 1,917 52 2.71 918 10 1.09 Federal funds sold 18,606 515 2.77 30,568 294 0.96 ------------- ----------- ------------- ------------- TOTAL EARNING ASSETS 2,123,954 122,691 5.78 % 2,194,149 113,807 5.19 % Less: allowance for credit losses (14,852) (14,870) Cash and due from banks 44,880 40,937 Premises and equipment, net 44,045 39,501 Other assets 102,224 97,619 ------------- ------------- Total assets $2,300,251 $2,357,336 ============= ============= LIABILITIES AND STOCKHOLDERS' EQUITY Interest-bearing demand deposits $238,547 $619 0.26 % $227,254 $655 0.29 % Regular savings deposits 221,716 727 0.33 202,253 719 0.36 Money market savings deposits 375,643 5,071 1.35 371,988 2,018 0.54 Time deposits 473,146 11,819 2.50 420,101 8,119 1.93 ------------- ----------- ------------- ------------- Total interest-bearing deposits 1,309,052 18,236 1.39 1,221,596 11,511 0.94 Borrowings 345,013 11,285 3.27 541,907 21,471 3.96 ------------- ----------- ------------- ------------- TOTAL INTEREST-BEARING LIABILITIES 1,654,065 29,521 1.78 1,763,503 32,982 1.87 ----------- ------------- Net interest income and spread* $93,170 3.99 % $80,825 3.32 % =========== ======== ============= ======== Noninterest-bearing demand deposits 428,454 376,361 Other liabilities 19,352 21,233 Stockholder's equity 198,380 196,239 ------------- ------------- Total liabilities and stockholders' equity $2,300,251 $2,357,336 ============= ============= Interest income/earning assets 5.78 % 5.19 % Interest expense/earning assets 1.39 1.50 -------- -------- Net interest margin 4.39 % 3.68 % ======== ========
* 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 $7,008,000 for the six months ended June 30, 2005 and $7,810,000 for the six months ended June 30, 2004.