UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 22, 2015
SANDY SPRING BANCORP, INC.
(Exact name of registrant as specified in its charter)
Maryland | 000-19065 | 52-1532952 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
17801 Georgia Avenue, Olney, Maryland 20832
(Address of principal executive offices, including zip code)
Registrant’s telephone number, including area code: (301) 774-6400
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 Results of Operations and Financial Condition
On January 22, 2015, Sandy Spring Bancorp, Inc. issued a news release announcing its results of operations and financial condition for the quarter ended December 31, 2014. A copy of the news release is included as Exhibit 99.1 to this report.
Item 9.01 Financial Statements and Exhibits
Exhibits
Number | Description | |
99.1 | Press Release dated January 22, 2015 |
2 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
SANDY SPRING BANCORP, INC. | ||
(Registrant) | ||
Date: January 22, 2015 | By: | /s/ Daniel J. Schrider |
Daniel J. Schrider | ||
President and Chief Executive Officer |
3 |
Exhibit 99.1
|
News release |
FOR IMMEDIATE RELEASE
SANDY SPRING BANCORP REPORTS NET INCOME OF $9.1 MILLION FOR THE FOURTH QUARTER AND $38.2 MILLION FOR THE FULL YEAR
OLNEY, MARYLAND, January 22, 2015 — Sandy Spring Bancorp, Inc., (Nasdaq-SASR) the parent company of Sandy Spring Bank, today reported net income for the fourth quarter of 2014 of $9.1 million ($0.36 per diluted share) compared to net income of $9.6 million ($0.38 per diluted share) for the fourth quarter of 2013 and net income of $11.1 million ($0.44 per diluted share) for the third quarter of 2014.
Net income for the year ended December 31, 2014 was $38.2 million ($1.52 per diluted share) compared to net income of $44.4 million ($1.77 per diluted share) for the prior year. For comparison purposes, the current year includes $6.5 million in litigation expenses associated with a particular legal action while the prior year’s results includes a benefit of $4.5 million in interest income and professional fees associated with the resolution of a non-performing loan relationship.
“Considering the impact on operating results of the items mentioned above, the Company produced solid core results in 2014 driven by notable growth in its loan and deposit portfolios and the strong performance of its wealth management business. We are proud of our accomplishments considering the market volatility and extremely competitive environment that existed throughout the year,” said Daniel J. Schrider, President and Chief Executive Officer.
“Looking to the future, we are making appropriate investments in our client-facing facilities and systems as we adapt our delivery channels to the preferences of our clients. We anticipate this will provide the opportunity for further growth in our franchise while we continue to render outstanding service to our clients,” said Schrider.
Fourth Quarter Highlights:
· | Total loans increased 12% compared to the fourth quarter of 2013 and 5% compared to the third quarter of 2014. Growth over the prior year exceeded 10% in each of the three major portfolio segments. Overall the entire portfolio grew $343 million from the prior year. |
· | Combined noninterest-bearing and interest-bearing transaction account balances increased 18% to $1.5 billion at December 31, 2014 as compared to $1.3 billion at December 31, 2013. |
· | The provision for loan and lease losses for the fourth quarter of 2014 was a charge of $0.9 million compared to a charge of $0.6 million for the fourth quarter of 2013 and a credit of $0.2 million for the third quarter of 2014. The credit quality of the loan portfolio continues to exhibit stability while outstanding loans increased significantly over the prior year. |
· | The net interest margin was 3.44% for the fourth quarter of 2014, compared to 3.53% for the fourth quarter of 2013 and 3.42% for the third quarter of 2014. |
· | Non-interest income decreased 3% for the quarter compared to the prior year quarter primarily due to a decrease in other non-interest income. This decrease was somewhat offset by a 9% increase in income from wealth management activities. |
· | Non-interest expense for the quarter increased 4% over the prior year quarter due mainly to $1.1 million in non-recurring expenses in the quarter for bankcard losses and an adjustment to insurance receivables. |
Review of Balance Sheet and Credit Quality
Total assets grew 7% to $4.4 billion at December 31, 2014 compared to $4.1 billion at December 31, 2013. This growth was driven by a 12% increase in the loan portfolio as total loans and leases ended the period at $3.1 billion.
Deposits and certain other short-term borrowings that comprise all the funding sources derived from customers, increased 7% compared to the prior year end. At December 31, 2014, combined noninterest-bearing and interest-bearing checking account balances, an important performance driver of multiple-product banking relationships with clients, increased 18% compared to balances at December 31, 2013.
Tangible common equity totaled $438 million at December 31, 2014 compared to $417 million at December 31, 2013, resulting in a decrease in the ratio of tangible common equity to tangible assets to 10.15% at December 31, 2014 from 10.37% at December 31, 2013. Dividends per common share were $0.76 per share for the year compared to $0.64 per common share for 2013, a 19% increase. At December 31, 2014, the Company had a total risk-based capital ratio of 15.06%, a tier 1 risk-based capital ratio of 13.95% and a tier 1 leverage ratio of 11.26%.
Non-performing loans totaled $34.0 million at December 31, 2014 compared to $40.0 million at December 31, 2013 and $43.7 million at September 30, 2014. The level of non-performing loans to total loans decreased to 1.09% at December 31, 2014 compared to 1.44% at December 31, 2013. The year-over-year decrease was driven primarily by loan pay-offs and a reduction in restructured loans as such loans have performed to allow them to no longer be classified as non-performing.
Loan charge-offs, net of recoveries, totaled $0.6 million for the fourth quarter of 2014 compared to net loan charge-offs of $1.2 million for the fourth quarter of 2013 and net loan charge-offs of $0.2 million for the third quarter of 2014. The allowance for loan and lease losses represented 1.21% of outstanding loans and leases and 111% of non-performing loans at December 31, 2014 compared to 1.39% of outstanding loans and leases and 97% of non-performing loans at December 31, 2013. Non-performing loans includes accruing loans 90 days or more past due and restructured loans.
Income Statement Review
Net interest income for the fourth quarter of 2014 increased 3% compared to the fourth quarter of 2013. The net interest margin was 3.44% for the fourth quarter of 2014 compared to 3.53% for the fourth quarter of 2013.
The provision for loan and lease losses was a charge of $0.9 million for the fourth quarter of 2014 compared to a charge of $0.6 million for the fourth quarter of 2013 and a credit of $0.2 million for the third quarter of 2014. The current quarter’s charge reflects the growth in the loan portfolio over the prior quarters. This growth in the loan portfolio produced an effect that more than offset the lower charge-offs and reduced problem loan migration into non-performing status during the past twelve months.
Non-interest income decreased 3% to $11.3 million for the fourth quarter of 2014 compared to $11.7 million for the fourth quarter of 2013. The decrease in non-interest income for the quarter compared to the prior year quarter was due primarily to lower other non-interest income from sales and dispositions of loans and fixed assets which occurred in the prior year quarter.
Non-interest expenses increased 4% to $30.5 million for the fourth quarter of 2014 compared to $29.3 million in the fourth quarter of 2013. The current quarter included increases in other non-interest expenses for bankcard losses and an adjustment to uncollectible insurance receivables. The non-GAAP efficiency ratio was 65.89% for the fourth quarter of 2014 compared to 63.62% for the fourth quarter of 2013.
Net interest income for the year ended December 31, 2014 was relatively level compared to the prior year. Excluding interest recoveries of $3.7 million in the prior year, net interest income would have increased 3%. The net interest margin decreased to 3.45% in 2014 compared to 3.63% in 2013. The prior year’s margin was positively impacted by loan recoveries on commercial loans. Exclusive of those recoveries the net interest margin for 2013 would have been 3.53%
The provision for loan and lease losses was a credit of $0.2 million for the year ended December 31, 2014 compared to a credit of $1.1 million for the year ended December 31, 2013. The credits in the provision for each year were driven by a decline in historical losses, improvement in the overall credit quality of the loan portfolio and problem loan resolutions and recoveries whose impact more than offset the effect of loan growth.
Non-interest income decreased 1% to $46.9 million for 2014 compared to $47.5 million for 2013. This decrease was driven primarily by the decrease in income from mortgage banking activities as loan origination volumes declined. Other non-interest income also decreased due to sales and dispositions of loans and fixed assets and a non-recurring legal settlement, all of which occurred in the prior year. The impact of these decreases was somewhat mitigated by an increase in wealth management income of 9% due to higher assets under management.
Non-interest expenses increased to $120.8 million for 2014 compared to $111.5 million for 2013 due primarily to the impact of $6.5 million in litigation expenses. Excluding the impact of the litigation expenses related to an adverse jury verdict, non-interest expense for the year ended December 31, 2014 was $114.3 million. This increase was driven mainly by higher bankcard losses and an adjustment to uncollectible insurance receivables. The non-GAAP efficiency ratio was 62.48% for 2014 compared to 60.06% for 2013. Excluding the loan interest recoveries in 2013, the non-GAAP efficiency ratio was 61.71%.
Conference Call
The Company’s management will host a conference call to discuss its fourth 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. Participants may call 1-866-235-9910. A password is not necessary. Visitors to the Web site are advised to log on 10 minutes ahead of the scheduled start of the call. An internet-based replay will be available at the Web site until 9:00 am (ET) February 2, 2015. A replay of the teleconference will be available through the same time period by calling 1-877-344-7529 under conference call number 10058497.
About Sandy Spring Bancorp, Inc.
With $4.4 billion in assets, Sandy Spring Bancorp, Inc. is the holding company for Sandy Spring Bank and its principal subsidiaries, Sandy Spring Insurance Corporation and West Financial Services, Inc. Sandy Spring Bank traces its origin to 1868, making it among the oldest banking institutions in the region. 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 offers a broad range of commercial banking, retail banking and trust services through 44 community offices in Anne Arundel, Carroll, Frederick, Howard, Montgomery, and Prince George’s counties in Maryland, and Arlington, Fairfax and Loudoun counties in Virginia. Through its subsidiaries, Sandy Spring Bank also offers a comprehensive menu of insurance and investment management services. Visit www.sandyspringbank.com for more information about Sandy Spring Bank.
For additional information or questions, please contact:
Daniel J. Schrider, President & Chief Executive Officer, or
Philip J. Mantua, E.V.P. & Chief Financial Officer
Sandy Spring Bancorp
17801 Georgia Avenue
Olney, Maryland 20832
1-800-399-5919
Email: DSchrider@sandyspringbank.com
PMantua@sandyspringbank.com
Web site: www.sandyspringbank.com
Forward-Looking Statements
Sandy Spring Bancorp makes forward-looking statements in this news release and in the conference call regarding this news release. These forward-looking statements may 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.
Forward-looking statements are typically identified by words such as “believe,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,” “forecast,” “project” and other similar words and expressions. Forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made. Sandy Spring Bancorp does not assume any duty and does not undertake to update its forward-looking statements. Because forward-looking statements are subject to assumptions and uncertainties, actual results or future events could differ, possibly materially, from those that Sandy Spring Bancorp anticipated in its forward-looking statements and future results could differ materially from historical performance.
Sandy Spring Bancorp’s forward-looking statements are subject to the following principal risks and uncertainties: general economic conditions and trends, either nationally or locally; conditions in the securities markets; changes in interest rates; changes in deposit flows, and in the demand for deposit, loan, and investment products and other financial services; changes in real estate values; changes in the quality or composition of the Company’s loan or investment portfolios; changes in competitive pressures among financial institutions or from non-financial institutions; the Company’s ability to retain key members of management; changes in legislation, regulations, and policies; and a variety of other matters which, by their nature, are subject to significant uncertainties. Sandy Spring Bancorp provides greater detail regarding some of these factors in its Form 10-K for the year ended December 31, 2013, 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 Subsidiaries
FINANCIAL HIGHLIGHTS - UNAUDITED
Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||
December 31, | % | December 31, | % | |||||||||||||||||||||
(Dollars in thousands, except per share data) | 2014 | 2013 | Change | 2014 | 2013 | Change | ||||||||||||||||||
Results of Operations: | ||||||||||||||||||||||||
Net interest income | $ | 33,227 | $ | 32,350 | 3 | % | $ | 129,548 | $ | 129,914 | - | % | ||||||||||||
Provision (credit) for loan and lease losses | 853 | 586 | 46 | (163 | ) | (1,084 | ) | (85 | ) | |||||||||||||||
Non-interest income | 11,338 | 11,654 | (3 | ) | 46,871 | 47,511 | (1 | ) | ||||||||||||||||
Non-interest expenses | 30,478 | 29,300 | 4 | 120,800 | 111,524 | 8 | ||||||||||||||||||
Income before income taxes | 13,234 | 14,118 | (6 | ) | 55,782 | 66,985 | (17 | ) | ||||||||||||||||
Net income | 9,148 | 9,613 | (5 | ) | 38,200 | 44,422 | (14 | ) | ||||||||||||||||
Pre-tax pre-provision income | $ | 14,242 | $ | 14,704 | (3 | ) | $ | 62,138 | $ | 65,901 | (6 | ) | ||||||||||||
Return on average assets | 0.85 | % | 0.93 | % | 0.91 | % | 1.11 | % | ||||||||||||||||
Return on average common equity | 6.93 | % | 7.71 | % | 7.43 | % | 9.11 | % | ||||||||||||||||
Net interest margin | 3.44 | % | 3.53 | % | 3.45 | % | 3.63 | % | ||||||||||||||||
Efficiency ratio - GAAP basis (1) | 68.39 | % | 66.59 | % | 68.47 | % | 62.86 | % | ||||||||||||||||
Efficiency ratio - Non-GAAP basis (1) | 65.89 | % | 63.62 | % | 62.48 | % | 60.06 | % | ||||||||||||||||
Per share data: | ||||||||||||||||||||||||
Basic net income | $ | 0.37 | $ | 0.38 | (3 | )% | $ | 1.53 | $ | 1.78 | (14 | )% | ||||||||||||
Diluted net income | $ | 0.36 | $ | 0.38 | (5 | ) | $ | 1.52 | $ | 1.77 | (14 | ) | ||||||||||||
Average fully diluted shares | 25,151,831 | 25,108,109 | - | 25,139,370 | 25,075,014 | - | ||||||||||||||||||
Dividends declared per share | $ | 0.20 | $ | 0.18 | 11 | $ | 0.76 | $ | 0.64 | 19 | ||||||||||||||
Book value per share | 20.83 | 19.98 | 4 | 20.83 | 19.98 | 4 | ||||||||||||||||||
Tangible book value per share | 17.48 | 16.68 | 5 | 17.48 | 16.68 | 5 | ||||||||||||||||||
Outstanding shares | 25,044,877 | 24,990,021 | - | 25,044,877 | 24,990,021 | - | ||||||||||||||||||
Financial Condition at period-end: | ||||||||||||||||||||||||
Investment securities | $ | 933,619 | $ | 1,016,609 | (8 | )% | $ | 933,619 | $ | 1,016,609 | (8 | )% | ||||||||||||
Loans and leases | 3,127,392 | 2,784,266 | 12 | 3,127,392 | 2,784,266 | 12 | ||||||||||||||||||
Interest-earning assets | 4,114,936 | 3,836,912 | 7 | 4,114,936 | 3,836,912 | 7 | ||||||||||||||||||
Assets | 4,397,132 | 4,106,100 | 7 | 4,397,132 | 4,106,100 | 7 | ||||||||||||||||||
Deposits | 3,066,509 | 2,877,225 | 7 | 3,066,509 | 2,877,225 | 7 | ||||||||||||||||||
Interest-bearing liabilities | 2,837,204 | 2,744,869 | 3 | 2,837,204 | 2,744,869 | 3 | ||||||||||||||||||
Stockholders' equity | 521,751 | 499,363 | 4 | 521,751 | 499,363 | 4 | ||||||||||||||||||
Capital ratios: | ||||||||||||||||||||||||
Tier 1 leverage (4) | 11.26 | % | 11.32 | % | 11.26 | % | 11.32 | % | ||||||||||||||||
Tier 1 capital to risk-weighted assets (4) | 13.95 | % | 14.42 | % | 13.95 | % | 14.42 | % | ||||||||||||||||
Total regulatory capital to risk-weighted assets (4) | 15.06 | % | 15.65 | % | 15.06 | % | 15.65 | % | ||||||||||||||||
Tangible common equity to tangible assets (2) | 10.15 | % | 10.37 | % | 10.15 | % | 10.37 | % | ||||||||||||||||
Average equity to average assets | 12.21 | % | 12.12 | % | 12.26 | % | 12.17 | % | ||||||||||||||||
Credit quality ratios: | ||||||||||||||||||||||||
Allowance for loan and lease losses to loans and leases | 1.21 | % | 1.39 | % | 1.21 | % | 1.39 | % | ||||||||||||||||
Non-performing loans to total loans | 1.09 | % | 1.44 | % | 1.09 | % | 1.44 | % | ||||||||||||||||
Non-performing assets to total assets | 0.85 | % | 1.01 | % | 0.85 | % | 1.01 | % | ||||||||||||||||
Allowance for loan and lease losses to non-performing loans | 111.09 | % | 96.83 | % | 111.09 | % | 96.83 | % | ||||||||||||||||
Annualized net charge-offs to average loans and leases (3) | 0.08 | % | 0.18 | % | 0.03 | % | 0.12 | % |
(1) | The efficiency ratio - GAAP basis is non-interest expenses 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 from non-interest expense; securities gains (losses) from non-interest income; OTTI; and the tax-equivalent adjustment to net interest income. See the Reconciliation Table included with these Financial Highlights. |
(2) | The tangible common equity to tangible assets ratio is a non-GAAP ratio that divides assets excluding intangible assets into stockholders' equity after deducting intangible assets and other comprehensive gains (losses). See the Reconciliation Table included with these Financial Highlights. |
(3) | Calculation utilizes average loans and leases, excluding residential mortgage loans held-for-sale. |
(4) | Estimated ratio at December 31, 2014 |
Sandy Spring Bancorp, Inc. and Subsidiaries
RECONCILIATION TABLE - UNAUDITED
Three Months Ended | Twelve Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Pre-tax pre-provision income: | ||||||||||||||||
Net income | $ | 9,148 | $ | 9,613 | $ | 38,200 | $ | 44,422 | ||||||||
Plus non-GAAP adjustment: | ||||||||||||||||
Litigation expenses | 155 | - | 6,519 | - | ||||||||||||
Income taxes | 4,086 | 4,505 | 17,582 | 22,563 | ||||||||||||
Provision (credit) for loan and lease losses | 853 | 586 | (163 | ) | (1,084 | ) | ||||||||||
Pre-tax pre-provision income | $ | 14,242 | $ | 14,704 | $ | 62,138 | $ | 65,901 | ||||||||
Efficiency ratio - GAAP basis: | ||||||||||||||||
Non-interest expenses | $ | 30,478 | $ | 29,300 | $ | 120,800 | $ | 111,524 | ||||||||
Net interest income plus non-interest income | $ | 44,565 | $ | 44,004 | $ | 176,419 | $ | 177,425 | ||||||||
Efficiency ratio - GAAP basis | 68.39 | % | 66.59 | % | 68.47 | % | 62.86 | % | ||||||||
Efficiency ratio - Non-GAAP basis: | ||||||||||||||||
Non-interest expenses | $ | 30,478 | $ | 29,300 | $ | 120,800 | $ | 111,524 | ||||||||
Less non-GAAP adjustment: | ||||||||||||||||
Amortization of intangible assets | 112 | 461 | 821 | 1,845 | ||||||||||||
Litigation expenses | 155 | - | 6,519 | - | ||||||||||||
Non-interest expenses - as adjusted | $ | 30,211 | $ | 28,839 | $ | 113,460 | $ | 109,679 | ||||||||
Net interest income plus non-interest income | $ | 44,565 | $ | 44,004 | $ | 176,419 | $ | 177,425 | ||||||||
Plus non-GAAP adjustment: | ||||||||||||||||
Tax-equivalent income | 1,283 | 1,325 | 5,192 | 5,292 | ||||||||||||
Less non-GAAP adjustments: | ||||||||||||||||
Securities gains (losses) | (3 | ) | (3 | ) | 5 | 115 | ||||||||||
Net interest income plus non-interest income - as adjusted | $ | 45,851 | $ | 45,332 | $ | 181,606 | $ | 182,602 | ||||||||
Efficiency ratio - Non-GAAP basis | 65.89 | % | 63.62 | % | 62.48 | % | 60.06 | % | ||||||||
Tangible common equity ratio: | ||||||||||||||||
Total stockholders' equity | $ | 521,751 | $ | 499,363 | $ | 521,751 | $ | 499,363 | ||||||||
Accumulated other comprehensive income | 823 | 2,970 | 823 | 2,970 | ||||||||||||
Goodwill | (84,171 | ) | (84,171 | ) | (84,171 | ) | (84,171 | ) | ||||||||
Other intangible assets, net | (510 | ) | (1,330 | ) | (510 | ) | (1,330 | ) | ||||||||
Tangible common equity | $ | 437,893 | $ | 416,832 | $ | 437,893 | $ | 416,832 | ||||||||
Total assets | $ | 4,397,132 | $ | 4,106,100 | $ | 4,397,132 | $ | 4,106,100 | ||||||||
Goodwill | (84,171 | ) | (84,171 | ) | (84,171 | ) | (84,171 | ) | ||||||||
Other intangible assets, net | (510 | ) | (1,330 | ) | (510 | ) | (1,330 | ) | ||||||||
Tangible assets | $ | 4,312,451 | $ | 4,020,599 | $ | 4,312,451 | $ | 4,020,599 | ||||||||
Tangible common equity ratio | 10.15 | % | 10.37 | % | 10.15 | % | 10.37 | % | ||||||||
Outstanding common shares | 25,044,877 | 24,990,021 | 25,044,877 | 24,990,021 | ||||||||||||
Tangible book value per common share | $ | 17.48 | $ | 16.68 | $ | 17.48 | $ | 16.68 |
Sandy Spring Bancorp, Inc. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF CONDITION - UNAUDITED
December 31, | December 31, | |||||||
(Dollars in thousands) | 2014 | 2013 | ||||||
Assets | ||||||||
Cash and due from banks | $ | 52,804 | $ | 46,755 | ||||
Federal funds sold | 473 | 475 | ||||||
Interest-bearing deposits with banks | 42,940 | 27,197 | ||||||
Cash and cash equivalents | 96,217 | 74,427 | ||||||
Residential mortgage loans held for sale (at fair value) | 10,512 | 8,365 | ||||||
Investments available-for-sale (at fair value) | 672,209 | 751,284 | ||||||
Investments held-to-maturity — fair value of $222,260 and $216,007 at December 31, 2014 and 2013, respectively | 219,973 | 224,638 | ||||||
Other equity securities | 41,437 | 40,687 | ||||||
Total loans and leases | 3,127,392 | 2,784,266 | ||||||
Less: allowance for loan and lease losses | (37,802 | ) | (38,766 | ) | ||||
Net loans and leases | 3,089,590 | 2,745,500 | ||||||
Premises and equipment, net | 49,402 | 45,916 | ||||||
Other real estate owned | 3,195 | 1,338 | ||||||
Accrued interest receivable | 12,634 | 12,532 | ||||||
Goodwill | 84,171 | 84,171 | ||||||
Other intangible assets, net | 510 | 1,330 | ||||||
Other assets | 117,282 | 115,912 | ||||||
Total assets | $ | 4,397,132 | $ | 4,106,100 | ||||
Liabilities | ||||||||
Noninterest-bearing deposits | $ | 993,737 | $ | 836,198 | ||||
Interest-bearing deposits | 2,072,772 | 2,041,027 | ||||||
Total deposits | 3,066,509 | 2,877,225 | ||||||
Securities sold under retail repurchase agreements and federal funds purchased | 74,432 | 53,842 | ||||||
Advances from FHLB | 655,000 | 615,000 | ||||||
Subordinated debentures | 35,000 | 35,000 | ||||||
Accrued interest payable and other liabilities | 44,440 | 25,670 | ||||||
Total liabilities | 3,875,381 | 3,606,737 | ||||||
Stockholders' Equity | ||||||||
Common stock — par value $1.00; shares authorized 50,000,000; shares issued and outstanding 25,044,877 and | ||||||||
24,990,021 at December 31, 2014 and 2013, respectively | 25,045 | 24,990 | ||||||
Additional paid in capital | 194,647 | 193,445 | ||||||
Retained earnings | 302,882 | 283,898 | ||||||
Accumulated other comprehensive loss | (823 | ) | (2,970 | ) | ||||
Total stockholders' equity | 521,751 | 499,363 | ||||||
Total liabilities and stockholders' equity | $ | 4,397,132 | $ | 4,106,100 |
Sandy Spring Bancorp, Inc. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
Three Months
Ended December 31, | Twelve Months
Ended December 31, | |||||||||||||||
(Dollars in thousands, except per share data) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Interest Income: | ||||||||||||||||
Interest and fees on loans and leases | $ | 31,899 | $ | 30,443 | $ | 123,369 | $ | 122,380 | ||||||||
Interest on loans held for sale | 101 | 91 | 312 | 929 | ||||||||||||
Interest on deposits with banks | 19 | 19 | 85 | 84 | ||||||||||||
Interest and dividends on investment securities: | ||||||||||||||||
Taxable | 3,673 | 4,224 | 15,377 | 16,635 | ||||||||||||
Exempt from federal income taxes | 2,282 | 2,331 | 9,222 | 9,318 | ||||||||||||
Interest on fed funds sold | 1 | 1 | 1 | 1 | ||||||||||||
Total interest income | 37,975 | 37,109 | 148,366 | 149,347 | ||||||||||||
Interest Expense: | ||||||||||||||||
Interest on deposits | 1,206 | 1,230 | 4,791 | 5,439 | ||||||||||||
Interest on retail repurchase agreements and federal funds purchased | 47 | 37 | 164 | 163 | ||||||||||||
Interest on advances from FHLB | 3,273 | 3,269 | 12,982 | 12,936 | ||||||||||||
Interest on subordinated debt | 222 | 223 | 881 | 895 | ||||||||||||
Total interest expense | 4,748 | 4,759 | 18,818 | 19,433 | ||||||||||||
Net interest income | 33,227 | 32,350 | 129,548 | 129,914 | ||||||||||||
Provision (credit) for loan and lease losses | 853 | 586 | (163 | ) | (1,084 | ) | ||||||||||
Net interest income after provision (credit) for loan and lease losses | 32,374 | 31,764 | 129,711 | 130,998 | ||||||||||||
Non-interest Income: | ||||||||||||||||
Investment securities gains (losses) | (3 | ) | (3 | ) | 5 | 115 | ||||||||||
Service charges on deposit accounts | 2,135 | 2,143 | 8,422 | 8,533 | ||||||||||||
Mortgage banking activities | 512 | 356 | 1,994 | 3,094 | ||||||||||||
Wealth management income | 4,905 | 4,508 | 19,086 | 17,585 | ||||||||||||
Insurance agency commissions | 985 | 1,243 | 4,996 | 4,821 | ||||||||||||
Income from bank owned life insurance | 627 | 635 | 2,444 | 2,499 | ||||||||||||
Bank card fees | 1,144 | 1,052 | 4,439 | 4,165 | ||||||||||||
Other income | 1,033 | 1,720 | 5,485 | 6,699 | ||||||||||||
Total non-interest income | 11,338 | 11,654 | 46,871 | 47,511 | ||||||||||||
Non-interest Expenses: | ||||||||||||||||
Salaries and employee benefits | 16,793 | 16,707 | 66,387 | 65,598 | ||||||||||||
Occupancy expense of premises | 3,914 | 3,844 | 13,692 | 13,171 | ||||||||||||
Equipment expenses | 1,333 | 1,264 | 5,188 | 4,940 | ||||||||||||
Marketing | 838 | 897 | 2,926 | 2,880 | ||||||||||||
Outside data services | 1,284 | 1,162 | 4,947 | 4,580 | ||||||||||||
FDIC insurance | 615 | 445 | 2,302 | 2,300 | ||||||||||||
Amortization of intangible assets | 112 | 461 | 821 | 1,845 | ||||||||||||
Litigation expenses | 155 | - | 6,519 | - | ||||||||||||
Other expenses | 5,434 | 4,520 | 18,018 | 16,210 | ||||||||||||
Total non-interest expenses | 30,478 | 29,300 | 120,800 | 111,524 | ||||||||||||
Income before income taxes | 13,234 | 14,118 | 55,782 | 66,985 | ||||||||||||
Income tax expense | 4,086 | 4,505 | 17,582 | 22,563 | ||||||||||||
Net income | $ | 9,148 | $ | 9,613 | $ | 38,200 | $ | 44,422 | ||||||||
Net Income Per Share Amounts: | ||||||||||||||||
Basic net income per share | $ | 0.37 | $ | 0.38 | $ | 1.53 | $ | 1.78 | ||||||||
Diluted net income per share | $ | 0.36 | $ | 0.38 | $ | 1.52 | $ | 1.77 | ||||||||
Dividends declared per share | $ | 0.20 | $ | 0.18 | $ | 0.76 | $ | 0.64 |
Sandy Spring Bancorp, Inc. and Subsidiaries
HISTORICAL TRENDS - QUARTERLY FINANCIAL DATA - UNAUDITED
2014 | 2013 | |||||||||||||||||||||||||||||||
(Dollars in thousands, except per share data) | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||||||||||
Profitability for the Quarter: | ||||||||||||||||||||||||||||||||
Tax-equivalent interest income | $ | 39,258 | $ | 38,446 | $ | 38,322 | $ | 37,532 | $ | 38,434 | $ | 41,524 | $ | 37,091 | $ | 37,590 | ||||||||||||||||
Interest expense | 4,748 | 4,730 | 4,682 | 4,658 | 4,759 | 4,874 | 4,847 | 4,953 | ||||||||||||||||||||||||
Tax-equivalent net interest income | 34,510 | 33,716 | 33,640 | 32,874 | 33,675 | 36,650 | 32,244 | 32,637 | ||||||||||||||||||||||||
Tax-equivalent adjustment | 1,283 | 1,296 | 1,331 | 1,282 | 1,325 | 1,344 | 1,312 | 1,311 | ||||||||||||||||||||||||
Provision for loan and lease losses | 853 | (192 | ) | 158 | (982 | ) | 586 | 1,128 | (2,876 | ) | 78 | |||||||||||||||||||||
Non-interest income | 11,338 | 12,590 | 11,694 | 11,249 | 11,654 | 11,223 | 12,215 | 12,419 | ||||||||||||||||||||||||
Non-interest expenses | 30,478 | 28,632 | 34,141 | 27,549 | 29,300 | 26,893 | 27,508 | 27,823 | ||||||||||||||||||||||||
Income before income taxes | 13,234 | 16,570 | 9,704 | 16,274 | 14,118 | 18,508 | 18,515 | 15,844 | ||||||||||||||||||||||||
Income tax expense | 4,086 | 5,428 | 2,722 | 5,346 | 4,505 | 6,419 | 6,353 | 5,286 | ||||||||||||||||||||||||
Net income | $ | 9,148 | $ | 11,142 | $ | 6,982 | $ | 10,928 | $ | 9,613 | $ | 12,089 | $ | 12,162 | $ | 10,558 | ||||||||||||||||
Financial Performance: | ||||||||||||||||||||||||||||||||
Pre-tax pre-provision income | $ | 14,242 | $ | 16,614 | $ | 15,990 | $ | 15,292 | $ | 14,704 | $ | 19,636 | $ | 15,639 | $ | 15,922 | ||||||||||||||||
Return on average assets | 0.85 | % | 1.05 | % | 0.67 | % | 1.08 | % | 0.93 | % | 1.19 | % | 1.23 | % | 1.08 | % | ||||||||||||||||
Return on average common equity | 6.93 | % | 8.54 | % | 5.47 | % | 8.80 | % | 7.71 | % | 9.91 | % | 9.98 | % | 8.85 | % | ||||||||||||||||
Net interest margin | 3.44 | % | 3.42 | % | 3.48 | % | 3.47 | % | 3.53 | % | 3.88 | % | 3.51 | % | 3.59 | % | ||||||||||||||||
Efficiency ratio - GAAP basis (1) | 68.39 | % | 63.61 | % | 77.59 | % | 64.31 | % | 66.59 | % | 57.80 | % | 63.75 | % | 63.60 | % | ||||||||||||||||
Efficiency ratio - Non-GAAP basis (1) | 65.89 | % | 61.09 | % | 61.30 | % | 61.60 | % | 63.62 | % | 55.21 | % | 60.92 | % | 60.80 | % | ||||||||||||||||
Per Share Data: | ||||||||||||||||||||||||||||||||
Basic net income per share | $ | 0.37 | $ | 0.44 | $ | 0.28 | $ | 0.44 | $ | 0.38 | $ | 0.48 | $ | 0.49 | $ | 0.42 | ||||||||||||||||
Diluted net income per share | $ | 0.36 | $ | 0.44 | $ | 0.28 | $ | 0.43 | $ | 0.38 | $ | 0.48 | $ | 0.49 | $ | 0.42 | ||||||||||||||||
Average fully diluted shares | 25,151,831 | 25,151,582 | 25,127,036 | 25,124,206 | 25,108,109 | 25,070,506 | 25,009,092 | 25,002,612 | ||||||||||||||||||||||||
Dividends declared per common share | $ | 0.20 | $ | 0.20 | $ | 0.18 | $ | 0.18 | $ | 0.18 | $ | 0.16 | $ | 0.16 | $ | 0.14 | ||||||||||||||||
Non-interest Income: | ||||||||||||||||||||||||||||||||
Securities gains (losses) | $ | (3 | ) | $ | 8 | $ | - | $ | - | $ | (3 | ) | $ | - | $ | 62 | $ | 56 | ||||||||||||||
Service charges on deposit accounts | 2,135 | 2,226 | 2,089 | 1,972 | 2,143 | 2,171 | 2,150 | 2,069 | ||||||||||||||||||||||||
Mortgage banking activities | 512 | 596 | 570 | 316 | 356 | (26 | ) | 1,237 | 1,527 | |||||||||||||||||||||||
Wealth management income | 4,905 | 4,974 | 4,741 | 4,466 | 4,508 | 4,503 | 4,532 | 4,042 | ||||||||||||||||||||||||
Insurance agency commissions | 985 | 1,410 | 961 | 1,640 | 1,243 | 1,193 | 1,036 | 1,349 | ||||||||||||||||||||||||
Income from bank owned life insurance | 627 | 611 | 608 | 598 | 635 | 629 | 623 | 612 | ||||||||||||||||||||||||
Bank card fees | 1,144 | 1,148 | 1,169 | 978 | 1,052 | 1,077 | 1,079 | 957 | ||||||||||||||||||||||||
Other income | 1,033 | 1,617 | 1,556 | 1,279 | 1,720 | 1,676 | 1,496 | 1,807 | ||||||||||||||||||||||||
Total Non-interest Income | $ | 11,338 | $ | 12,590 | $ | 11,694 | $ | 11,249 | $ | 11,654 | $ | 11,223 | $ | 12,215 | $ | 12,419 | ||||||||||||||||
Non-interest Expense: | ||||||||||||||||||||||||||||||||
Salaries and employee benefits | $ | 16,793 | $ | 16,765 | $ | 16,474 | $ | 16,355 | $ | 16,707 | $ | 16,382 | $ | 16,163 | $ | 16,346 | ||||||||||||||||
Occupancy expense of premises | 3,914 | 3,032 | 3,274 | 3,472 | 3,844 | 3,149 | 2,996 | 3,182 | ||||||||||||||||||||||||
Equipment expenses | 1,333 | 1,337 | 1,262 | 1,256 | 1,264 | 1,200 | 1,227 | 1,249 | ||||||||||||||||||||||||
Marketing | 838 | 744 | 802 | 542 | 897 | 713 | 755 | 515 | ||||||||||||||||||||||||
Outside data services | 1,284 | 1,231 | 1,216 | 1,216 | 1,162 | 1,152 | 1,114 | 1,152 | ||||||||||||||||||||||||
FDIC insurance | 615 | 594 | 573 | 520 | 445 | 678 | 581 | 596 | ||||||||||||||||||||||||
Amortization of intangible assets | 112 | 115 | 224 | 370 | 461 | 462 | 461 | 461 | ||||||||||||||||||||||||
Litigation expenses | 155 | 236 | 6,128 | - | - | - | - | - | ||||||||||||||||||||||||
Professional fees | 1,246 | 1,092 | 1,292 | 914 | 1,386 | 511 | 1,332 | 1,250 | ||||||||||||||||||||||||
Other real estate owned expenses | 2 | 40 | 9 | - | 91 | (150 | ) | (281 | ) | 37 | ||||||||||||||||||||||
Other expenses | 4,186 | 3,446 | 2,887 | 2,904 | 3,043 | 2,796 | 3,160 | 3,035 | ||||||||||||||||||||||||
Total Non-interest Expense | $ | 30,478 | $ | 28,632 | $ | 34,141 | $ | 27,549 | $ | 29,300 | $ | 26,893 | $ | 27,508 | $ | 27,823 |
(1) | The efficiency ratio - GAAP basis is non-interest expenses 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 from non-interest expense; excludes securities gains; OTTI losses from non-interest income; and adds the tax-equivalent adjustment to net interest income. See the Reconciliation Table included with these Financial Highlights. |
Sandy Spring Bancorp, Inc. and Subsidiaries
HISTORICAL TRENDS - QUARTERLY FINANCIAL DATA - UNAUDITED
2014 | 2013 | |||||||||||||||||||||||||||||||
(Dollars in thousands) | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||||||||||
Balance Sheets at Quarter End: | ||||||||||||||||||||||||||||||||
Residential mortgage loans | $ | 717,886 | $ | 698,925 | $ | 668,536 | $ | 640,939 | $ | 618,381 | $ | 595,180 | $ | 565,282 | $ | 538,346 | ||||||||||||||||
Residential construction loans | 136,741 | 141,883 | 149,321 | 143,109 | 129,177 | 118,316 | 116,736 | 122,698 | ||||||||||||||||||||||||
Commercial ADC loans | 205,124 | 194,666 | 178,972 | 163,343 | 160,696 | 158,739 | 163,309 | 150,599 | ||||||||||||||||||||||||
Commercial investor real estate loans | 640,193 | 575,984 | 577,813 | 573,634 | 552,178 | 518,029 | 497,365 | 487,802 | ||||||||||||||||||||||||
Commercial owner occupied real estate loans | 611,061 | 584,964 | 581,795 | 582,472 | 592,823 | 569,350 | 563,258 | 565,820 | ||||||||||||||||||||||||
Commercial business loans | 390,781 | 368,611 | 357,472 | 348,180 | 356,651 | 332,670 | 334,979 | 344,489 | ||||||||||||||||||||||||
Leasing | 54 | 156 | 260 | 439 | 703 | 962 | 1,415 | 1,974 | ||||||||||||||||||||||||
Consumer loans | 425,552 | 410,723 | 396,775 | 380,697 | 373,657 | 368,764 | 363,114 | 353,341 | ||||||||||||||||||||||||
Total loans and leases | 3,127,392 | 2,975,912 | 2,910,944 | 2,832,813 | 2,784,266 | 2,662,010 | 2,605,458 | 2,565,069 | ||||||||||||||||||||||||
Allowance for loan and lease losses | (37,802 | ) | (37,574 | ) | (37,959 | ) | (38,026 | ) | (38,766 | ) | (39,422 | ) | (39,015 | ) | (41,246 | ) | ||||||||||||||||
Investment securities | 933,619 | 950,869 | 980,530 | 997,584 | 1,016,609 | 1,077,951 | 1,102,209 | 1,008,693 | ||||||||||||||||||||||||
Interest-earning assets | 4,114,936 | 3,976,731 | 3,945,643 | 3,891,223 | 3,836,912 | 3,771,825 | 3,802,682 | 3,660,809 | ||||||||||||||||||||||||
Total assets | 4,397,132 | 4,248,731 | 4,234,342 | 4,168,998 | 4,106,100 | 4,052,969 | 4,072,617 | 3,932,026 | ||||||||||||||||||||||||
Noninterest-bearing demand deposits | 993,737 | 986,549 | 984,700 | 882,169 | 836,198 | 890,319 | 877,891 | 832,679 | ||||||||||||||||||||||||
Total deposits | 3,066,509 | 3,028,788 | 3,038,670 | 2,959,195 | 2,877,225 | 2,916,466 | 2,926,650 | 2,919,208 | ||||||||||||||||||||||||
Customer repurchase agreements | 74,432 | 71,384 | 72,917 | 67,038 | 53,842 | 53,177 | 54,731 | 50,302 | ||||||||||||||||||||||||
Total interest-bearing liabilities | 2,837,204 | 2,706,623 | 2,698,887 | 2,748,064 | 2,744,869 | 2,634,324 | 2,678,490 | 2,576,831 | ||||||||||||||||||||||||
Total stockholders' equity | 521,751 | 522,404 | 517,269 | 510,386 | 499,363 | 493,882 | 485,643 | 488,947 | ||||||||||||||||||||||||
Quarterly Average Balance Sheets: | ||||||||||||||||||||||||||||||||
Residential mortgage loans | $ | 717,671 | $ | 689,531 | $ | 659,172 | $ | 633,160 | $ | 614,698 | $ | 593,335 | $ | 579,899 | $ | 575,889 | ||||||||||||||||
Residential construction loans | 141,890 | 147,750 | 145,968 | 134,261 | 125,744 | 120,676 | 119,197 | 120,283 | ||||||||||||||||||||||||
Commercial ADC loans | 201,020 | 180,293 | 168,063 | 162,544 | 156,558 | 158,557 | 160,483 | 148,749 | ||||||||||||||||||||||||
Commercial investor real estate loans | 607,050 | 577,851 | 575,283 | 557,168 | 522,085 | 499,896 | 485,630 | 474,062 | ||||||||||||||||||||||||
Commercial owner occupied real estate loans | 594,634 | 585,014 | 579,953 | 584,155 | 580,808 | 566,366 | 561,249 | 567,723 | ||||||||||||||||||||||||
Commercial business loans | 367,872 | 367,203 | 348,597 | 349,734 | 357,455 | 331,374 | 337,843 | 347,569 | ||||||||||||||||||||||||
Leasing | 114 | 206 | 352 | 567 | 817 | 1,152 | 1,644 | 2,510 | ||||||||||||||||||||||||
Consumer loans | 417,910 | 404,062 | 390,076 | 377,822 | 373,017 | 366,562 | 360,842 | 357,366 | ||||||||||||||||||||||||
Total loans and leases | 3,048,161 | 2,951,910 | 2,867,464 | 2,799,411 | 2,731,182 | 2,637,918 | 2,606,787 | 2,594,151 | ||||||||||||||||||||||||
Investment securities | 942,782 | 965,206 | 991,135 | 1,012,701 | 1,055,432 | 1,097,643 | 1,047,726 | 1,051,769 | ||||||||||||||||||||||||
Interest-earning assets | 4,022,051 | 3,954,858 | 3,893,843 | 3,845,513 | 3,817,033 | 3,770,855 | 3,692,215 | 3,677,444 | ||||||||||||||||||||||||
Total assets | 4,292,237 | 4,220,084 | 4,157,559 | 4,105,225 | 4,082,839 | 4,039,069 | 3,959,907 | 3,946,578 | ||||||||||||||||||||||||
Noninterest-bearing demand deposits | 1,000,285 | 956,830 | 899,287 | 825,968 | 872,532 | 862,046 | 838,502 | 797,926 | ||||||||||||||||||||||||
Total deposits | 3,063,591 | 3,036,686 | 2,965,329 | 2,876,641 | 2,901,814 | 2,903,926 | 2,892,704 | 2,860,451 | ||||||||||||||||||||||||
Customer repurchase agreements | 78,746 | 73,046 | 68,880 | 62,864 | 57,682 | 56,766 | 55,941 | 52,622 | ||||||||||||||||||||||||
Total interest-bearing liabilities | 2,731,791 | 2,711,206 | 2,716,537 | 2,749,459 | 2,679,812 | 2,659,406 | 2,599,704 | 2,631,198 | ||||||||||||||||||||||||
Total stockholders' equity | 524,063 | 517,534 | 511,738 | 503,851 | 494,779 | 483,811 | 489,014 | 483,664 | ||||||||||||||||||||||||
Financial Measures: | ||||||||||||||||||||||||||||||||
Average equity to average assets | 12.21 | % | 12.26 | % | 12.31 | % | 12.27 | % | 12.12 | % | 11.98 | % | 12.35 | % | 12.26 | % | ||||||||||||||||
Investment securities to earning assets | 22.69 | % | 23.91 | % | 24.85 | % | 25.64 | % | 26.50 | % | 28.58 | % | 28.99 | % | 27.55 | % | ||||||||||||||||
Loans to earning assets | 76.00 | % | 74.83 | % | 73.78 | % | 72.80 | % | 72.57 | % | 70.58 | % | 68.52 | % | 70.07 | % | ||||||||||||||||
Loans to assets | 71.12 | % | 70.04 | % | 68.75 | % | 67.95 | % | 67.81 | % | 65.68 | % | 63.98 | % | 65.24 | % | ||||||||||||||||
Loans to deposits | 101.99 | % | 98.25 | % | 95.80 | % | 95.73 | % | 96.77 | % | 91.28 | % | 89.03 | % | 87.87 | % | ||||||||||||||||
Capital Measures: | ||||||||||||||||||||||||||||||||
Tier 1 leverage (1) | 11.26 | % | 11.26 | % | 11.37 | % | 11.43 | % | 11.32 | % | 11.29 | % | 11.28 | % | 11.07 | % | ||||||||||||||||
Tier 1 capital to risk-weighted assets (1) | 13.95 | % | 13.95 | % | 14.48 | % | 14.64 | % | 14.42 | % | 14.45 | % | 14.30 | % | 14.23 | % | ||||||||||||||||
Total regulatory capital to risk-weighted assets (1) | 15.06 | % | 15.06 | % | 15.66 | % | 15.85 | % | 15.65 | % | 15.70 | % | 15.55 | % | 15.48 | % | ||||||||||||||||
Book value per share | $ | 20.83 | $ | 20.83 | $ | 20.63 | $ | 20.38 | $ | 19.98 | $ | 19.77 | $ | 19.45 | $ | 19.59 | ||||||||||||||||
Outstanding shares | 25,044,877 | 25,076,794 | 25,069,700 | 25,043,482 | 24,990,021 | 24,985,146 | 24,967,558 | 24,954,892 |
(1) | Estimated ratio at December 31, 2014 |
Sandy Spring Bancorp, Inc. and Subsidiaries
LOAN PORTFOLIO QUALITY DETAIL - UNAUDITED
2014 | 2013 | |||||||||||||||||||||||||||||||
(Dollars in thousands) | December 31, | September 30, | June 30, | March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||||||||||
Non-Performing Assets: | ||||||||||||||||||||||||||||||||
Loans and leases 90 days past due: | ||||||||||||||||||||||||||||||||
Commercial business | $ | - | $ | - | $ | 1 | $ | - | $ | - | $ | - | $ | 15 | $ | - | ||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||||||||||
Commercial AD&C | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Commercial investor real estate | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Commercial owner occupied real estate | - | 649 | - | - | - | - | - | - | ||||||||||||||||||||||||
Leasing | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Consumer | - | 6 | 3 | - | 1 | 10 | - | 54 | ||||||||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||||||||||
Residential mortgage | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Residential construction | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Total loans and leases 90 days past due | - | 655 | 4 | - | 1 | 10 | 15 | 54 | ||||||||||||||||||||||||
Non-accrual loans and leases: | ||||||||||||||||||||||||||||||||
Commercial business | 3,184 | 4,151 | 4,309 | 3,272 | 3,400 | 4,050 | 4,483 | 4,012 | ||||||||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||||||||||
Commercial AD&C | 2,464 | 3,792 | 3,739 | 4,133 | 4,127 | 5,086 | 5,885 | 5,826 | ||||||||||||||||||||||||
Commercial investor real estate | 8,156 | 8,210 | 6,731 | 7,284 | 6,802 | 6,877 | 11,741 | 12,353 | ||||||||||||||||||||||||
Commercial owner occupied real estate | 8,941 | 10,742 | 10,868 | 7,150 | 5,936 | 4,202 | 5,413 | 5,346 | ||||||||||||||||||||||||
Leasing | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Consumer | 1,668 | 1,830 | 2,058 | 2,115 | 2,259 | 2,004 | 2,305 | 2,388 | ||||||||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||||||||||
Residential mortgage | 3,012 | 4,417 | 4,501 | 5,025 | 5,735 | 5,643 | 5,581 | 5,393 | ||||||||||||||||||||||||
Residential construction | 1,105 | 2,497 | 2,143 | 2,304 | 2,315 | 2,327 | 2,558 | 3,258 | ||||||||||||||||||||||||
Total non-accrual loans and leases | 28,530 | 35,639 | 34,349 | 31,283 | 30,574 | 30,189 | 37,966 | 38,576 | ||||||||||||||||||||||||
Total restructured loans - accruing | 5,497 | 7,382 | 7,364 | 7,411 | 9,459 | 8,054 | 8,213 | 10,839 | ||||||||||||||||||||||||
Total non-performing loans and leases | 34,027 | 43,676 | 41,717 | 38,694 | 40,034 | 38,253 | 46,194 | 49,469 | ||||||||||||||||||||||||
Other assets and real estate owned (OREO) | 3,195 | 1,762 | 1,967 | 1,619 | 1,338 | 1,662 | 4,831 | 5,250 | ||||||||||||||||||||||||
Total non-performing assets | $ | 37,222 | $ | 45,438 | $ | 43,684 | $ | 40,313 | $ | 41,372 | $ | 39,915 | $ | 51,025 | $ | 54,719 |
For the quarter ended, | ||||||||||||||||||||||||||||||||
December 31, | September 30, | June 30, | March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||||||||||||
(Dollars in thousands) | 2014 | 2014 | 2014 | 2014 | 2013 | 2013 | 2013 | 2013 | ||||||||||||||||||||||||
Analysis of Non-accrual Loan and Lease Activity: | ||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 35,639 | $ | 34,349 | $ | 31,283 | $ | 30,574 | $ | 30,189 | $ | 37,966 | $ | 38,576 | $ | 47,548 | ||||||||||||||||
Non-accrual balances transferred to OREO | (1,475 | ) | (300 | ) | (390 | ) | (281 | ) | (365 | ) | (723 | ) | (1,426 | ) | (92 | ) | ||||||||||||||||
Non-accrual balances charged-off | (1,033 | ) | (216 | ) | (357 | ) | (513 | ) | (922 | ) | (4,995 | ) | (668 | ) | (2,175 | ) | ||||||||||||||||
Net payments or draws | (4,139 | ) | (590 | ) | (1,580 | ) | (1,073 | ) | (971 | ) | (13,547 | ) | (3,560 | ) | (11,768 | ) | ||||||||||||||||
Loans placed on non-accrual | 779 | 2,396 | 5,393 | 2,576 | 3,546 | 11,488 | 5,044 | 5,493 | ||||||||||||||||||||||||
Non-accrual loans brought current | (1,241 | ) | - | - | - | (903 | ) | - | - | (430 | ) | |||||||||||||||||||||
Balance at end of period | $ | 28,530 | $ | 35,639 | $ | 34,349 | $ | 31,283 | $ | 30,574 | $ | 30,189 | $ | 37,966 | $ | 38,576 | ||||||||||||||||
Analysis of Allowance for Loan Losses: | ||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 37,574 | $ | 37,959 | $ | 38,026 | $ | 38,766 | $ | 39,422 | $ | 39,015 | $ | 41,246 | $ | 42,957 | ||||||||||||||||
Provision (credit) for loan and lease losses | 853 | (192 | ) | 158 | (982 | ) | 586 | 1,128 | (2,876 | ) | 78 | |||||||||||||||||||||
Less loans charged-off, net of recoveries: | ||||||||||||||||||||||||||||||||
Commercial business | 50 | (58 | ) | 28 | (768 | ) | 384 | 1 | (32 | ) | 1,744 | |||||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||||||||||
Commercial AD&C | 529 | - | - | - | 85 | (616 | ) | (1,444 | ) | (1,020 | ) | |||||||||||||||||||||
Commercial investor real estate | (5 | ) | (2 | ) | (23 | ) | (5 | ) | 23 | 1,243 | 123 | 31 | ||||||||||||||||||||
Commercial owner occupied real estate | (6 | ) | - | 265 | - | (82 | ) | (284 | ) | 100 | 81 | |||||||||||||||||||||
Leasing | - | - | - | - | - | (6 | ) | (4 | ) | - | ||||||||||||||||||||||
Consumer | 83 | 244 | 11 | 331 | 488 | 169 | 490 | 508 | ||||||||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||||||||||
Residential mortgage | (17 | ) | 43 | (27 | ) | 203 | 347 | 216 | 22 | 447 | ||||||||||||||||||||||
Residential construction | (9 | ) | (34 | ) | (29 | ) | (3 | ) | (3 | ) | (2 | ) | 100 | (2 | ) | |||||||||||||||||
Net charge-offs | 625 | 193 | 225 | (242 | ) | 1,242 | 721 | (645 | ) | 1,789 | ||||||||||||||||||||||
Balance at end of period | $ | 37,802 | $ | 37,574 | $ | 37,959 | $ | 38,026 | $ | 38,766 | $ | 39,422 | $ | 39,015 | $ | 41,246 | ||||||||||||||||
Asset Quality Ratios: | ||||||||||||||||||||||||||||||||
Non-performing loans to total loans | 1.09 | % | 1.47 | % | 1.43 | % | 1.37 | % | 1.44 | % | 1.44 | % | 1.77 | % | 1.93 | % | ||||||||||||||||
Non-performing assets to total assets | 0.85 | % | 1.07 | % | 1.03 | % | 0.97 | % | 1.01 | % | 0.98 | % | 1.25 | % | 1.39 | % | ||||||||||||||||
Allowance for loan losses to loans | 1.21 | % | 1.26 | % | 1.30 | % | 1.34 | % | 1.39 | % | 1.48 | % | 1.50 | % | 1.61 | % | ||||||||||||||||
Allowance for loan losses to non-performing loans | 111.09 | % | 86.03 | % | 90.99 | % | 98.27 | % | 96.83 | % | 103.06 | % | 84.46 | % | 83.38 | % | ||||||||||||||||
Annualized net charge-offs to average loans | 0.08 | % | 0.03 | % | 0.03 | % | (0.04 | )% | 0.18 | % | 0.11 | % | (0.10 | )% | 0.28 | % |
Sandy Spring Bancorp, Inc. and Subsidiaries
CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES - UNAUDITED
Three Months Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Annualized | Annualized | |||||||||||||||||||||||
Average | (1) | Average | Average | (1) | Average | |||||||||||||||||||
(Dollars in thousands and tax-equivalent) | Balances | Interest | Yield/Rate | Balances | Interest | Yield/Rate | ||||||||||||||||||
Assets | ||||||||||||||||||||||||
Residential mortgage loans (2) | $ | 717,671 | $ | 6,086 | 3.42 | % | $ | 614,698 | $ | 5,384 | 3.49 | % | ||||||||||||
Residential construction loans | 141,890 | 1,328 | 3.71 | 125,744 | 1,189 | 3.75 | ||||||||||||||||||
Commercial ADC loans | 201,020 | 2,364 | 4.67 | 156,558 | 2,057 | 5.21 | ||||||||||||||||||
Commercial investor real estate loans | 607,050 | 7,320 | 4.78 | 522,085 | 6,974 | 5.30 | ||||||||||||||||||
Commercial owner occupied real estate loans | 594,634 | 7,282 | 5.02 | 580,808 | 7,230 | 5.10 | ||||||||||||||||||
Commercial business loans | 367,872 | 4,132 | 4.48 | 357,455 | 4,520 | 4.97 | ||||||||||||||||||
Leasing | 114 | 1 | 6.56 | 817 | 14 | 6.81 | ||||||||||||||||||
Consumer loans | 417,910 | 3,487 | 3.33 | 373,017 | 3,166 | 3.39 | ||||||||||||||||||
Total loans and leases (3) | 3,048,161 | 32,000 | 4.21 | 2,731,182 | 30,534 | 4.47 | ||||||||||||||||||
Taxable securities | 643,233 | 4,031 | 2.49 | 751,796 | 4,597 | 2.43 | ||||||||||||||||||
Tax-exempt securities (4) | 299,549 | 3,207 | 4.25 | 303,636 | 3,283 | 4.29 | ||||||||||||||||||
Interest-bearing deposits with banks | 30,635 | 19 | 0.25 | 29,944 | 19 | 0.25 | ||||||||||||||||||
Federal funds sold | 473 | 1 | 0.22 | 475 | 1 | 0.22 | ||||||||||||||||||
Total interest-earning assets | 4,022,051 | 39,258 | 3.91 | 3,817,033 | 38,434 | 4.03 | ||||||||||||||||||
Less: allowance for loan and lease losses | (38,291 | ) | (39,775 | ) | ||||||||||||||||||||
Cash and due from banks | 48,729 | 45,549 | ||||||||||||||||||||||
Premises and equipment, net | 47,552 | 46,545 | ||||||||||||||||||||||
Other assets | 212,196 | 213,487 | ||||||||||||||||||||||
Total assets | $ | 4,292,237 | $ | 4,082,839 | ||||||||||||||||||||
Liabilities and Stockholders' Equity | ||||||||||||||||||||||||
Interest-bearing demand deposits | $ | 510,025 | 119 | 0.09 | % | $ | 443,959 | 93 | 0.08 | % | ||||||||||||||
Regular savings deposits | 261,564 | 34 | 0.05 | 239,382 | 45 | 0.08 | ||||||||||||||||||
Money market savings deposits | 842,158 | 277 | 0.13 | 876,014 | 283 | 0.13 | ||||||||||||||||||
Time deposits | 449,559 | 776 | 0.68 | 469,927 | 809 | 0.68 | ||||||||||||||||||
Total interest-bearing deposits | 2,063,306 | 1,206 | 0.23 | 2,029,282 | 1,230 | 0.24 | ||||||||||||||||||
Other borrowings | 78,746 | 47 | 0.23 | 61,780 | 37 | 0.24 | ||||||||||||||||||
Advances from FHLB | 554,739 | 3,273 | 2.34 | 553,750 | 3,269 | 2.34 | ||||||||||||||||||
Subordinated debentures | 35,000 | 222 | 2.54 | 35,000 | 223 | 2.55 | ||||||||||||||||||
Total interest-bearing liabilities | 2,731,791 | 4,748 | 0.69 | 2,679,812 | 4,759 | 0.70 | ||||||||||||||||||
Noninterest-bearing demand deposits | 1,000,285 | 872,532 | ||||||||||||||||||||||
Other liabilities | 36,098 | 35,716 | ||||||||||||||||||||||
Stockholders' equity | 524,063 | 494,779 | ||||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 4,292,237 | $ | 4,082,839 | ||||||||||||||||||||
Net interest income and spread | $ | 34,510 | 3.22 | % | $ | 33,675 | 3.33 | % | ||||||||||||||||
Less: tax-equivalent adjustment | 1,283 | 1,325 | ||||||||||||||||||||||
Net interest income | $ | 33,227 | $ | 32,350 | ||||||||||||||||||||
Interest income/earning assets | 3.91 | % | 4.03 | % | ||||||||||||||||||||
Interest expense/earning assets | 0.47 | 0.50 | ||||||||||||||||||||||
Net interest margin | 3.44 | % | 3.53 | % |
(1) | Tax-equivalent income has been adjusted using the combined marginal federal and state rate of 39.88% for 2014 and 2013. The annualized taxable-equivalent adjustments utilized in the above table to compute yields aggregated to $1.3 million and $1.3 million in 2014 and 2013, respectively. |
(2) | Includes residential mortgage loans held for sale. Home equity loans and lines are classified as consumer loans. |
(3) | Non-accrual loans are included in the average balances. |
(4) | Includes only investments that are exempt from federal taxes. |
Sandy Spring Bancorp, Inc. and Subsidiaries
CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES - UNAUDITED
Twelve Months Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Annualized | Annualized | |||||||||||||||||||||||
Average | (1) | Average | Average | (1) | Average | |||||||||||||||||||
(Dollars in thousands and tax-equivalent) | Balances | Interest | Yield/Rate | Balances | Interest | Yield/Rate | ||||||||||||||||||
Assets | ||||||||||||||||||||||||
Residential mortgage loans (2) | $ | 675,155 | $ | 23,171 | 3.43 | % | $ | 591,068 | $ | 21,385 | 3.62 | % | ||||||||||||
Residential construction loans | 142,503 | 5,316 | 3.73 | 121,488 | 4,331 | 3.57 | ||||||||||||||||||
Commercial ADC loans | 178,092 | 8,814 | 4.95 | 156,115 | 9,596 | 6.15 | ||||||||||||||||||
Commercial investor real estate loans | 579,471 | 28,201 | 4.87 | 495,562 | 27,901 | 5.63 | ||||||||||||||||||
Commercial owner occupied real estate loans | 585,965 | 28,586 | 5.04 | 569,065 | 29,696 | 5.36 | ||||||||||||||||||
Commercial business loans | 358,425 | 16,400 | 4.59 | 343,554 | 17,807 | 5.07 | ||||||||||||||||||
Leasing | 308 | 17 | 5.64 | 1,525 | 102 | 6.70 | ||||||||||||||||||
Consumer loans | 397,595 | 13,176 | 3.34 | 364,495 | 12,491 | 3.45 | ||||||||||||||||||
Total loans and leases (3) | 2,917,514 | 123,681 | 4.27 | 2,642,872 | 123,309 | 4.69 | ||||||||||||||||||
Taxable securities | 676,237 | 16,817 | 2.49 | 761,713 | 18,133 | 2.38 | ||||||||||||||||||
Tax-exempt securities (4) | 301,493 | 12,974 | 4.30 | 301,534 | 13,112 | 4.35 | ||||||||||||||||||
Interest-bearing deposits with banks | 33,902 | 85 | 0.25 | 33,261 | 84 | 0.25 | ||||||||||||||||||
Federal funds sold | 474 | 1 | 0.22 | 475 | 1 | 0.22 | ||||||||||||||||||
Total interest-earning assets | 3,929,620 | 153,558 | 3.93 | 3,739,855 | 154,639 | 4.15 | ||||||||||||||||||
Less: allowance for loan and lease losses | (38,556 | ) | (41,606 | ) | ||||||||||||||||||||
Cash and due from banks | 46,224 | 45,836 | ||||||||||||||||||||||
Premises and equipment, net | 46,275 | 47,244 | ||||||||||||||||||||||
Other assets | 210,643 | 216,082 | ||||||||||||||||||||||
Total assets | $ | 4,194,206 | $ | 4,007,411 | ||||||||||||||||||||
Liabilities and Stockholders' Equity | ||||||||||||||||||||||||
Interest-bearing demand deposits | $ | 484,171 | 425 | 0.09 | % | $ | 438,183 | 373 | 0.09 | % | ||||||||||||||
Regular savings deposits | 259,066 | 165 | 0.06 | 238,818 | 204 | 0.09 | ||||||||||||||||||
Money market savings deposits | 864,029 | 1,116 | 0.13 | 879,588 | 1,414 | 0.16 | ||||||||||||||||||
Time deposits | 457,778 | 3,085 | 0.67 | 490,278 | 3,448 | 0.70 | ||||||||||||||||||
Total interest-bearing deposits | 2,065,044 | 4,791 | 0.23 | 2,046,867 | 5,439 | 0.27 | ||||||||||||||||||
Other borrowings | 70,933 | 164 | 0.23 | 60,249 | 163 | 0.27 | ||||||||||||||||||
Advances from FHLB | 556,178 | 12,982 | 2.33 | 500,593 | 12,936 | 2.58 | ||||||||||||||||||
Subordinated debentures | 35,000 | 881 | 2.52 | 35,000 | 895 | 2.56 | ||||||||||||||||||
Total interest-bearing liabilities | 2,727,155 | 18,818 | 0.69 | 2,642,709 | 19,433 | 0.74 | ||||||||||||||||||
Noninterest-bearing demand deposits | 921,169 | 843,008 | ||||||||||||||||||||||
Other liabilities | 31,675 | 33,858 | ||||||||||||||||||||||
Stockholders' equity | 514,207 | 487,836 | ||||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 4,194,206 | $ | 4,007,411 | ||||||||||||||||||||
Net interest income and spread | $ | 134,740 | 3.24 | % | $ | 135,206 | 3.41 | % | ||||||||||||||||
Less: tax-equivalent adjustment | 5,192 | 5,292 | ||||||||||||||||||||||
Net interest income | $ | 129,548 | $ | 129,914 | ||||||||||||||||||||
Interest income/earning assets | 3.93 | % | 4.15 | % | ||||||||||||||||||||
Interest expense/earning assets | 0.48 | 0.52 | ||||||||||||||||||||||
Net interest margin | 3.45 | % | 3.63 | % |
(1) | Tax-equivalent income has been adjusted using the combined marginal federal and state rate of 39.88% for 2014 and 2013. The annualized taxable-equivalent adjustments utilized in the above table to compute yields aggregated to $5.2 million and $5.3 million in 2014 and 2013, respectively. |
(2) | Includes residential mortgage loans held for sale. Home equity loans and lines are classified as consumer loans. |
(3) | Non-accrual loans are included in the average balances. |
(4) | Includes only investments that are exempt from federal taxes. |
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