ACQUISITION

12 Months Ended

Dec. 31, 2013

Business Combinations [Abstract]

ACQUISITION

NOTE 2 – ACQUISITION

On May 31, 2012, the Company acquired CommerceFirst Bancorp, Inc. and its wholly-owned subsidiary. Under the terms of the acquisition the Company acquired 100% of the shares of CommerceFirst common stock for a combination of 50% Sandy Spring Bancorp common stock and 50% cash. Stock consideration was exchanged at a ratio of 0.8043 of the Company’s shares for each CommerceFirst share resulting in the issuance of 732,054 of the Company’s common stock. Total cash consideration amounted to $12.4 million or $13.60 per share.

The transaction was accounted for using the acquisition method of accounting and, accordingly, assets acquired, liabilities assumed and consideration transferred were recorded at their estimated fair value on the acquisition date. Assets acquired amounted to $188.0 million, including loans and leases of $165.8 million. Liabilities assumed totaled $170.6 million, including $169.9 million in deposits. The acquisition resulted in the addition of $13.0 million to the Company’s equity. Initially, goodwill of $8.0 million was recorded as a result of the transaction and is not deductible for tax purposes. In June, 2013 the goodwill was adjusted by $0.6 million related to a reduction in liabilities that existed at the acquisition date. The goodwill from this transaction was included in the Company’s Community Banking segment. The stock portion of the consideration to CommerceFirst shareholders qualified as a tax-free transaction.