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 17, 2019
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)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company ¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Item 2.02 | Results of Operations and Financial Condition |
On January 17, 2019, Sandy Spring Bancorp, Inc. issued a news release announcing its results of operations and financial condition for the quarter ended December 31, 2018. 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 17, 2019 |
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 17, 2019 | By: | /s/ Daniel J. Schrider |
Daniel J. Schrider | ||
President and Chief Executive Officer |
Exhibit 99.1
News release
FOR IMMEDIATE RELEASE
SANDY SPRING BANCORP ANNOUNCES RECORD ANNUAL EARNINGS
OLNEY, MARYLAND, January 17, 2019 — Sandy Spring Bancorp, Inc., (Nasdaq-SASR), the parent company of Sandy Spring Bank, reported net income for the fourth quarter of 2018 of $25.6 million ($0.72 per diluted share) compared to net income of $8.3 million ($0.34 per diluted share) for the fourth quarter of 2017 and net income of $29.2 million ($0.82 per diluted share) for the third quarter of 2018. The previous quarter’s pre-tax results included $2.0 million of recovered interest and $0.6 million in merger expenses. The third quarter’s net income excluding the after-tax impact of these items would have been $28.2 million or $0.79 per diluted share. The prior year’s fourth quarter results included $1.8 million in post-tax merger expenses and $5.6 million in additional income tax expense from the revaluation of the deferred tax assets as a result of the reduction of the corporate tax rate under the Tax Cuts and Jobs Act that became effective at the end of 2017. The combined impact of those items in the prior year’s fourth quarter resulted in a reduction to quarterly earnings per share of approximately $0.30 per share.
Net income for the full year 2018 was a record $100.9 million ($2.82 per diluted share). The results for 2018 include the effect of merger expenses associated with the acquisition of WashingtonFirst Bankshares (“WashingtonFirst”) totaling $11.8 million and $2.4 million in recovered interest income from previously acquired credit impaired loans. The additional merger expenses, net of the interest recoveries, resulted in an after tax reduction to earnings per share of approximately $0.19 per share for full-year 2018. Net income for 2017, which includes the additional income tax expense and merger expenses, was $53.2 million ($2.20 per share). These items reduced the prior year’s earnings per share by approximately $0.33 per share.
“Last year was a banner year for our organization,” said Daniel J. Schrider, President and Chief Executive Officer. “In 2018 we successfully completed the acquisition of WashingtonFirst, expanded our presence throughout Greater Washington, and marked our 150th anniversary. And, we achieved solid core growth in a competitive marketplace. We are well positioned for 2019.”
The results of operations from the January 1, 2018, acquisition of WashingtonFirst Bankshares are included in the Company’s consolidated results of operations for 2018. At the acquisition date, WashingtonFirst had assets of $2.1 billion, loans of $1.7 billion and deposits of $1.6 billion. Cost savings as a result of the synergies from the combination of the two institutions will continue to be realized into the first half of 2019.
Fourth Quarter Highlights:
· | Post-acquisition loan growth momentum remained strong during the quarter. Compared to the post-acquisition combined portfolio at the beginning of 2018, the loan portfolio has experienced 9% growth. Overall, total loans increased 52% compared to the fourth quarter of 2017 as a result of strong organic growth and the WashingtonFirst acquisition. |
· | The bank achieved 6% post-acquisition growth in total deposits in a competitive marketplace and a dynamic interest rate environment. |
· | The net interest margin for the fourth quarter of 2018 was 3.57% compared to 3.57% for the fourth quarter of 2017 and 3.71% for the third quarter of 2018. Excluding the recovered interest on an acquired credit impaired loan the net interest margin would have been 3.60% for the third quarter of 2018. |
· | Fourth quarter results reflected an annualized return on average assets of 1.25% and annualized return on average equity of 9.70%. The fourth quarter of 2017 results, which included the impact of the pre-tax merger expenses in addition to the income tax expense recognized as a result of the Tax Cuts and Jobs Act passed at the end of 2017, reflected a return on average assets of 0.61% and a return on average equity of 5.82%. |
· | The Non-GAAP efficiency ratio was 51.78% for the current quarter compared to 55.69% for the fourth quarter of 2017 and 49.27% for the third quarter of 2018. The efficiency ratio for the third quarter of 2018, excluding the previously mentioned interest recoveries, was 50.48%. |
Review of Balance Sheet and Credit Quality
At December 31, 2018, total assets amounted to $8.2 billion compared to $5.4 billion at December 31, 2017. This increase was primarily the result of the acquisition of WashingtonFirst’s $2.1 billion of assets. Total loans at December 31, 2018, were $6.6 billion compared to $4.3 billion at December 31, 2017. Post-acquisition asset growth has been primarily the result of net loan growth in 2018.
Tangible common equity totaled $728 million at December 31, 2018, compared to $484 million at December 31, 2017. At December 31, 2018, the ratio of tangible common equity to tangible assets increased to 9.23% compared to 9.04% at December 31, 2017. The initial impact on tangible common equity of the growth in intangible assets associated with the WashingtonFirst acquisition has been substantially offset during 2018 by increased net earnings. The Company had a total risk-based capital ratio of 12.27%, a common equity tier 1 risk-based capital ratio of 10.91%, a tier 1 risk-based capital ratio of 11.07% and a tier 1 leverage ratio of 9.51% at December 31, 2018.
The ratio of non-performing loans to total loans decreased to 0.55% at December 31, 2018, compared to 0.68% at December 31, 2017, as a result of the growth in the loan portfolio. Non-performing loans totaled $36.0 million at December 31, 2018, compared to $29.3 million at December 31, 2017, and $33.3 million at September 30, 2018. Non-performing loans include accruing loans 90 days or more past due and restructured loans, but exclude non-performing loans acquired in the WashingtonFirst acquisition.
Net loan charge-offs/recoveries were not significant for the fourth quarter of 2018 or the fourth quarter of 2017. The allowance for loan losses represented 0.81% of outstanding loans and 149% of non-performing loans at December 31, 2018, compared to 1.05% of outstanding loans and 154% of non-performing loans at December 31, 2017. The decline in the ratio of the allowance for loan losses to outstanding loans ratio is the result of the accounting for credit losses on the loans acquired in the WashingtonFirst acquisition, as any incurred credit losses have been embedded in the determination of the fair values of those loans.
Income Statement Review
For the fourth quarter of 2018, net interest income increased 52% to $66.1 million compared to $43.5 million for the fourth quarter of 2017 as average loans increased 52% primarily as a result of the WashingtonFirst acquisition and, to a lesser extent, the Company’s organic loan growth. The net interest margin for the current quarter was 3.57% compared to the net interest margin for the fourth quarter of 2017 of 3.57%. Amortization of the fair value adjustments to both interest-earning assets and interest-bearing liabilities directly attributable to the acquisition had a 12 basis point positive effect on net interest margin for the current period. This favorable margin impact was offset by approximately 5 basis points as a result of the impact that the current year’s reduction in the tax rate had on tax-advantaged investments.
The provision for loan losses was $3.4 million for the fourth quarter of 2018, compared to $0.5 million for the fourth quarter of 2017 and $1.9 million for the third quarter of 2018. The increase in the provision reflects the impact of organic loan production and the impact of acquired loans being re-underwritten as they matured under their original lending arrangements during the fourth quarter of 2018.
Non-interest income increased 14% to $14.0 million for the fourth quarter of 2018, compared to $12.3 million for the fourth quarter of 2017. The increase in non-interest income was due primarily to the impact of increased mortgage banking activities, income from wealth management activities and credit related fees.
Non-interest expenses increased 22% to $42.7 million for the fourth quarter of 2018, compared to $35.1 million in the fourth quarter of 2017. The prior year’s quarter included $2.9 million in merger expenses. Excluding these expenses, non-interest expenses increased 33% compared to fourth quarter of 2017 due to increased compensation and benefit costs, occupancy and other operational expenses as a result of the acquisition. The non-GAAP efficiency ratio improved to 51.78% for the fourth quarter of 2018, compared to 55.69% for the fourth quarter of 2017, as a result of the growth in net interest income.
Net interest income for the year ended 2018 increased 54%, compared to 2017, due to the combination of the acquisition and organic loan growth. For the year ended December 31, 2018, the net interest margin was 3.60% compared to 3.55% for the prior year. Net interest income for the year ended December 31, 2018 includes $2.4 million in recovered interest income on acquired credit impaired loans. This amount compares to interest recoveries of $1.1 million for 2017. Excluding these recoveries, the net interest margin would have been 3.58% for the year ended December 31, 2018 compared to 3.53% for the year ended December 31, 2017. The amortization of the fair value adjustments is estimated to be 13 basis points on an annual basis. This favorable margin effect was partially offset by the impact that the current year’s reduction in the tax rate had on the tax-advantaged securities in the investment portfolio, which adversely affected the margin by 5 basis points.
The provision for loan losses was $9.0 million for the year ended December 31, 2018, compared to $3.0 million for 2017. The increase in the provision reflects the organic growth in the loan portfolio year over year in addition to the impact of acquired loans being re-underwritten as they reached maturity under their original lending arrangements and cease to be accounted for as acquired loans.
Non-interest income was $61.0 million for 2018, compared to $51.2 million for 2017. The year ended December 31, 2018, included gains of $0.2 million on sales of investment securities compared to $1.3 million in 2017. Excluding these gains, non-interest income increased 22% compared to the prior year period primarily due to increases in mortgage banking activities, wealth management income and BOLI insurance mortality proceeds. Mortgage lending operations acquired as part of the WashingtonFirst transaction has resulted in significant growth in mortgage banking income for the year ended December 31, 2018.
Non-interest expenses increased 39% to $179.8 million for the year ended December 31, 2018, compared to $129.1 million for the prior year period. Excluding merger expense from both years in addition to the prior year’s prepayment penalties on the early pay-off of high rate FHLB advances, the year-over-year increase in non-interest expense was 36%. The majority of the increase was in compensation and benefit costs, occupancy costs and other operational expenses as a result of the acquisition of WashingtonFirst. The non-GAAP efficiency ratio improved to 50.87% for 2018 compared to 54.59% for 2017 as a direct result of the growth in net interest income. Excluding the interest recoveries the non-GAAP efficiency ratio for 2018 was 51.24% compared to 55.34% for 2017.
Explanation of Non-GAAP Financial Measures
Reported amounts are presented in accordance with generally accepted accounting principles in the United States (“GAAP”). The Company’s management uses supplemental non-GAAP financial measures in its analysis of the Company’s performance. These non-GAAP financial measures include: reported net income excluding intangible asset amortization, merger related expenses and the loss on the FHLB redemption from non-interest expense; non-interest income excluding securities gains (losses); and tax-equivalent net interest income, which adjusts the interest earned on tax-advantaged loans and tax-exempt investment securities to an amount comparable to interest subject to normal income taxes. Because the adjustments made to derive non-GAAP financial measures can vary from period to period, the Company’s management believes that the non-GAAP financial measures are useful in comparing period to period operating performance. Additionally, the Company believes this information is utilized by regulators and market analysts to evaluate a company’s financial condition and therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for financial results in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Please refer to Non-GAAP Reconciliation table included with this release.
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 Webcast of the conference call is available through the Investor Relations section of the Sandy Spring Website at AR. Participants may call 1-866-235-9910. A password is not necessary. Visitors to the Website are advised to log on 10 minutes ahead of the scheduled start of the call. An internet-based replay will be available on the website until 9:00 am (ET) January 31, 2019. A replay of the teleconference will be available through the same time period by calling 1-877-344-7529 under conference call number 10127438.
About Sandy Spring Bancorp, Inc.
Sandy Spring Bancorp, Inc., headquartered in Olney, Maryland, is the holding company for Sandy Spring Bank. Independent and community-oriented, Sandy Spring Bank offers a broad range of commercial banking, retail banking, mortgage and trust services throughout central Maryland, Northern Virginia, and the Greater Washington, D.C. market. Through its subsidiaries, Sandy Spring Insurance Corporation and West Financial Services, Inc., Sandy Spring Bank also offers a comprehensive menu of insurance and wealth management services. Visit www.sandyspringbank.com for more information.
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 | |
Media Contact: | ||
Jen Schell | ||
301-570-8331 | ||
jschell@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 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; the possibility that any of the anticipated benefits of acquisitions will not be realized or will not be realized within the expected time period; 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, 2017, 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) | 2018 | 2017 | Change | 2018 | 2017 | Change | ||||||||||||||||||
Results of Operations: | ||||||||||||||||||||||||
Net interest income | $ | 66,145 | $ | 43,492 | 52 | % | $ | 260,445 | $ | 168,768 | 54 | % | ||||||||||||
Provision for loan losses | 3,403 | 527 | n.m | 9,023 | 2,977 | n.m | ||||||||||||||||||
Non-interest income | 14,030 | 12,294 | 14 | 61,049 | 51,243 | 19 | ||||||||||||||||||
Non-interest expenses | 42,667 | 35,059 | 22 | 179,783 | 129,099 | 39 | ||||||||||||||||||
Income before income taxes | 34,105 | 20,200 | 69 | 132,688 | 87,935 | 51 | ||||||||||||||||||
Net income | 25,566 | 8,267 | n.m | 100,864 | 53,209 | 90 | ||||||||||||||||||
Pre-tax pre-provision income | $ | 37,508 | $ | 23,647 | 59 | $ | 153,477 | $ | 95,164 | 61 | ||||||||||||||
Return on average assets | 1.25 | % | 0.61 | % | 1.27 | % | 1.02 | % | ||||||||||||||||
Return on average common equity | 9.70 | % | 5.82 | % | 9.84 | % | 9.66 | % | ||||||||||||||||
Net interest margin | 3.57 | % | 3.57 | % | 3.60 | % | 3.55 | % | ||||||||||||||||
Efficiency ratio - GAAP basis (1) | 53.22 | % | 62.85 | % | 55.92 | % | 58.68 | % | ||||||||||||||||
Efficiency ratio - Non-GAAP basis (1) | 51.78 | % | 55.69 | % | 50.87 | % | 54.59 | % | ||||||||||||||||
Per share data: | ||||||||||||||||||||||||
Basic net income | $ | 0.72 | $ | 0.34 | 112 | % | $ | 2.82 | $ | 2.20 | 28 | % | ||||||||||||
Diluted net income | $ | 0.72 | $ | 0.34 | 112 | $ | 2.82 | $ | 2.20 | 28 | ||||||||||||||
Average fully diluted shares | 35,747,478 | 24,228,471 | 48 | 35,728,146 | 24,207,728 | 48 | ||||||||||||||||||
Dividends declared per share | $ | 0.28 | $ | 0.26 | 8 | $ | 1.10 | $ | 1.04 | 6 | ||||||||||||||
Book value per share | 30.06 | 23.50 | 28 | 30.06 | 23.50 | 28 | ||||||||||||||||||
Tangible book value per share | 20.48 | 20.18 | 1 | 20.48 | 20.18 | 1 | ||||||||||||||||||
Outstanding shares | 35,530,734 | 23,996,293 | 48 | 35,530,734 | 23,996,293 | 48 | ||||||||||||||||||
Financial Condition at period-end: | ||||||||||||||||||||||||
Investment securities | $ | 1,010,724 | $ | 775,025 | 30 | % | $ | 1,010,724 | $ | 775,025 | 30 | % | ||||||||||||
Loans | 6,573,014 | 4,314,248 | 52 | 6,573,014 | 4,314,248 | 52 | ||||||||||||||||||
Interest-earning assets | 7,640,978 | 5,155,928 | 48 | 7,640,978 | 5,155,928 | 48 | ||||||||||||||||||
Assets | 8,243,272 | 5,446,675 | 51 | 8,243,272 | 5,446,675 | 51 | ||||||||||||||||||
Deposits | 5,914,880 | 3,963,662 | 49 | 5,914,880 | 3,963,662 | 49 | ||||||||||||||||||
Interest-bearing liabilities | 5,378,026 | 3,584,462 | 50 | 5,378,026 | 3,584,462 | 50 | ||||||||||||||||||
Stockholders' equity | 1,067,903 | 563,816 | 89 | 1,067,903 | 563,816 | 89 | ||||||||||||||||||
Capital ratios: | ||||||||||||||||||||||||
Tier 1 leverage (4) | 9.51 | % | 9.24 | % | 9.51 | % | 9.24 | % | ||||||||||||||||
Tier 1 capital to risk-weighted assets (4) | 11.07 | % | 10.84 | % | 11.07 | % | 10.84 | % | ||||||||||||||||
Total regulatory capital to risk-weighted assets (4) | 12.27 | % | 11.85 | % | 12.27 | % | 11.85 | % | ||||||||||||||||
Common equity tier 1 capital to risk-weighted assets (4) | 10.91 | % | 10.84 | % | 10.91 | % | 10.84 | % | ||||||||||||||||
Tangible common equity to tangible assets (2) | 9.23 | % | 9.04 | % | 9.23 | % | 9.04 | % | ||||||||||||||||
Average equity to average assets | 12.90 | % | 10.54 | % | 12.87 | % | 10.51 | % | ||||||||||||||||
Credit quality ratios: | ||||||||||||||||||||||||
Allowance for loan losses to loans | 0.81 | % | 1.05 | % | 0.81 | % | 1.05 | % | ||||||||||||||||
Non-performing loans to total loans | 0.55 | % | 0.68 | % | 0.55 | % | 0.68 | % | ||||||||||||||||
Non-performing assets to total assets | 0.46 | % | 0.58 | % | 0.46 | % | 0.58 | % | ||||||||||||||||
Allowance for loan losses to non-performing loans | 148.51 | % | 154.20 | % | 148.51 | % | 154.20 | % | ||||||||||||||||
Annualized net charge-offs to average loans (3) | 0.02 | % | 0.02 | % | 0.01 | % | 0.04 | % |
(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, merger expenses and loss on FHLB redemption from non-interest expense; securities gains (losses) from non-interest income and adds 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, excluding residential mortgage loans held-for-sale. |
(4) | Estimated ratio at December 31, 2018 |
Sandy Spring Bancorp, Inc. and Subsidiaries
RECONCILIATION TABLE - UNAUDITED
Three Months Ended | Twelve Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
(Dollars in thousands) | 2018 | 2017 | 2018 | 2017 | ||||||||||||
Pre-tax pre-provision income: | ||||||||||||||||
Net income | $ | 25,566 | $ | 8,267 | $ | 100,864 | $ | 53,209 | ||||||||
Plus non-GAAP adjustments: | ||||||||||||||||
Merger expenses | - | 2,920 | 11,766 | 4,252 | ||||||||||||
Income taxes | 8,539 | 11,933 | 31,824 | 34,726 | ||||||||||||
Provision for loan losses | 3,403 | 527 | 9,023 | 2,977 | ||||||||||||
Pre-tax pre-provision income | $ | 37,508 | $ | 23,647 | $ | 153,477 | $ | 95,164 | ||||||||
Efficiency ratio - GAAP basis: | ||||||||||||||||
Non-interest expenses | $ | 42,667 | $ | 35,059 | $ | 179,783 | $ | 129,099 | ||||||||
Net interest income plus non-interest income | $ | 80,175 | $ | 55,786 | $ | 321,494 | $ | 220,011 | ||||||||
Efficiency ratio - GAAP basis | 53.22 | % | 62.85 | % | 55.92 | % | 58.68 | % | ||||||||
Efficiency ratio - Non-GAAP basis: | ||||||||||||||||
Non-interest expenses | $ | 42,667 | $ | 35,059 | $ | 179,783 | $ | 129,099 | ||||||||
Less non-GAAP adjustments: | ||||||||||||||||
Amortization of intangible assets | 540 | 25 | 2,162 | 101 | ||||||||||||
Loss on FHLB Redemption | - | - | - | 1,275 | ||||||||||||
Merger expenses | - | 2,920 | 11,766 | 4,252 | ||||||||||||
Non-interest expenses - as adjusted | $ | 42,127 | $ | 32,114 | $ | 165,855 | $ | 123,471 | ||||||||
Net interest income plus non-interest income | $ | 80,175 | $ | 55,786 | $ | 321,494 | $ | 220,011 | ||||||||
Plus non-GAAP adjustment: | ||||||||||||||||
Tax-equivalent income | 1,232 | 1,874 | 4,715 | 7,459 | ||||||||||||
Less non-GAAP adjustment: | ||||||||||||||||
Securities gains (losses) | 45 | (2 | ) | 190 | 1,273 | |||||||||||
Net interest income plus non-interest income - as adjusted | $ | 81,362 | $ | 57,662 | $ | 326,019 | $ | 226,197 | ||||||||
Efficiency ratio - Non-GAAP basis | 51.78 | % | 55.69 | % | 50.87 | % | 54.59 | % | ||||||||
Supplemental Non-GAAP Performance Measurements: | ||||||||||||||||
Net income - GAAP | $ | 25,566 | $ | 8,267 | $ | 100,864 | $ | 53,209 | ||||||||
Add: Merger expenses - net of tax | - | 1,755 | 8,692 | 2,556 | ||||||||||||
Less: Acquisition fair value marks - net of tax | 1,716 | 12 | 7,493 | 77 | ||||||||||||
Add: Incremental impact of revaluation of deferred tax assets | - | 5,544 | - | 5,544 | ||||||||||||
Net income - Non-GAAP | $ | 23,850 | $ | 15,554 | $ | 102,063 | $ | 61,232 | ||||||||
Diluted net income per share - Non-GAAP | $ | 0.67 | $ | 0.64 | $ | 2.86 | $ | 2.53 | ||||||||
Return on average assets - Non-GAAP | 1.17 | % | 1.15 | % | 1.28 | % | 1.17 | % | ||||||||
Return on average common equity - Non-GAAP | 9.05 | % | 10.95 | % | 9.96 | % | 11.11 | % | ||||||||
Tangible common equity ratio: | ||||||||||||||||
Total stockholders' equity | $ | 1,067,903 | $ | 563,816 | $ | 1,067,903 | $ | 563,816 | ||||||||
Accumulated other comprehensive loss | 15,754 | 6,857 | 15,754 | 6,857 | ||||||||||||
Goodwill | (346,130 | ) | (85,768 | ) | (346,130 | ) | (85,768 | ) | ||||||||
Other intangible assets, net | (9,788 | ) | (580 | ) | (9,788 | ) | (580 | ) | ||||||||
Tangible common equity | $ | 727,739 | $ | 484,325 | $ | 727,739 | $ | 484,325 | ||||||||
Total assets | $ | 8,243,272 | $ | 5,446,675 | $ | 8,243,272 | $ | 5,446,675 | ||||||||
Goodwill | (346,130 | ) | (85,768 | ) | (346,130 | ) | (85,768 | ) | ||||||||
Other intangible assets, net | (9,788 | ) | (580 | ) | (9,788 | ) | (580 | ) | ||||||||
Tangible assets | $ | 7,887,354 | $ | 5,360,327 | $ | 7,887,354 | $ | 5,360,327 | ||||||||
Tangible common equity ratio | 9.23 | % | 9.04 | % | 9.23 | % | 9.04 | % | ||||||||
Outstanding common shares | 35,530,734 | 23,996,293 | 35,530,734 | 23,996,293 | ||||||||||||
Tangible book value per common share | $ | 20.48 | $ | 20.18 | $ | 20.48 | $ | 20.18 |
Sandy Spring Bancorp, Inc. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF CONDITION - UNAUDITED
December 31, | December 31, | |||||||
(Dollars in thousands) | 2018 | 2017 | ||||||
Assets | ||||||||
Cash and due from banks | $ | 67,014 | $ | 55,693 | ||||
Federal funds sold | 609 | 2,845 | ||||||
Interest-bearing deposits with banks | 33,858 | 53,962 | ||||||
Cash and cash equivalents | 101,481 | 112,500 | ||||||
Residential mortgage loans held for sale (at fair value) | 22,773 | 9,848 | ||||||
Investments available-for-sale (at fair value) | 937,335 | 729,507 | ||||||
Other equity securities | 73,389 | 45,518 | ||||||
Total loans | 6,573,014 | 4,314,248 | ||||||
Less: allowance for loan losses | (53,486 | ) | (45,257 | ) | ||||
Net loans | 6,519,528 | 4,268,991 | ||||||
Premises and equipment, net | 61,942 | 54,761 | ||||||
Other real estate owned | 1,584 | 2,253 | ||||||
Accrued interest receivable | 24,609 | 15,480 | ||||||
Goodwill | 346,130 | 85,768 | ||||||
Other intangible assets, net | 9,788 | 580 | ||||||
Other assets | 144,713 | 121,469 | ||||||
Total assets | $ | 8,243,272 | $ | 5,446,675 | ||||
Liabilities | ||||||||
Noninterest-bearing deposits | $ | 1,750,319 | $ | 1,264,392 | ||||
Interest-bearing deposits | 4,164,561 | 2,699,270 | ||||||
Total deposits | 5,914,880 | 3,963,662 | ||||||
Securities sold under retail repurchase agreements and federal funds purchased | 327,429 | 119,359 | ||||||
Advances from FHLB | 848,611 | 765,833 | ||||||
Subordinated debentures | 37,425 | - | ||||||
Accrued interest payable and other liabilities | 47,024 | 34,005 | ||||||
Total liabilities | 7,175,369 | 4,882,859 | ||||||
Stockholders' Equity | ||||||||
Common stock -- par value $1.00; shares authorized 100,000,000; shares issued and outstanding 35,530,734 and 23,996,293 at December 31, 2018 and December 31, 2017, respectively | 35,531 | 23,996 | ||||||
Additional paid in capital | 606,573 | 168,188 | ||||||
Retained earnings | 441,553 | 378,489 | ||||||
Accumulated other comprehensive loss | (15,754 | ) | (6,857 | ) | ||||
Total stockholders' equity | 1,067,903 | 563,816 | ||||||
Total liabilities and stockholders' equity | $ | 8,243,272 | $ | 5,446,675 |
Sandy Spring Bancorp, Inc. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
Three Months Ended | Twelve Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
(Dollars in thousands, except per share data) | 2018 | 2017 | 2018 | 2017 | ||||||||||||
Interest Income: | ||||||||||||||||
Interest and fees on loans | $ | 78,081 | $ | 45,230 | $ | 293,131 | $ | 172,091 | ||||||||
Interest on loans held for sale | 262 | 6 | 1,245 | 279 | ||||||||||||
Interest on deposits with banks | 222 | 121 | 1,304 | 410 | ||||||||||||
Interest and dividends on investment securities: | ||||||||||||||||
Taxable | 5,219 | 3,309 | 20,516 | 13,881 | ||||||||||||
Exempt from federal income taxes | 1,820 | 2,001 | 7,855 | 8,111 | ||||||||||||
Interest on federal funds sold | 3 | 9 | 31 | 27 | ||||||||||||
Total interest income | 85,607 | 50,676 | 324,082 | 194,799 | ||||||||||||
Interest Expense: | ||||||||||||||||
Interest on deposits | 12,556 | 4,044 | 39,139 | 13,256 | ||||||||||||
Interest on retail repurchase agreements and federal funds purchased | 570 | 99 | 1,169 | 337 | ||||||||||||
Interest on advances from FHLB | 5,851 | 3,041 | 21,408 | 12,426 | ||||||||||||
Interest on subordinated debt | 485 | - | 1,921 | 12 | ||||||||||||
Total interest expense | 19,462 | 7,184 | 63,637 | 26,031 | ||||||||||||
Net interest income | 66,145 | 43,492 | 260,445 | 168,768 | ||||||||||||
Provision for loan losses | 3,403 | 527 | 9,023 | 2,977 | ||||||||||||
Net interest income after provision for loan losses | 62,742 | 42,965 | 251,422 | 165,791 | ||||||||||||
Non-interest Income: | ||||||||||||||||
Investment securities gains (losses) | 45 | (2 | ) | 190 | 1,273 | |||||||||||
Service charges on deposit accounts | 2,459 | 2,177 | 9,324 | 8,298 | ||||||||||||
Mortgage banking activities | 1,130 | 654 | 7,073 | 2,734 | ||||||||||||
Wealth management income | 5,492 | 5,054 | 21,284 | 19,146 | ||||||||||||
Insurance agency commissions | 1,138 | 1,307 | 6,158 | 6,231 | ||||||||||||
Income from bank owned life insurance | 663 | 595 | 4,327 | 2,403 | ||||||||||||
Bank card fees | 1,368 | 1,218 | 5,567 | 4,827 | ||||||||||||
Other income | 1,735 | 1,291 | 7,126 | 6,331 | ||||||||||||
Total non-interest income | 14,030 | 12,294 | 61,049 | 51,243 | ||||||||||||
Non-interest Expenses: | ||||||||||||||||
Salaries and employee benefits | 23,934 | 18,607 | 96,998 | 73,132 | ||||||||||||
Occupancy expense of premises | 4,413 | 3,146 | 18,352 | 13,053 | ||||||||||||
Equipment expenses | 2,426 | 1,802 | 9,335 | 7,015 | ||||||||||||
Marketing | 1,061 | 896 | 3,924 | 3,119 | ||||||||||||
Outside data services | 1,763 | 1,441 | 6,603 | 5,486 | ||||||||||||
FDIC insurance | 1,255 | 827 | 5,095 | 3,305 | ||||||||||||
Amortization of intangible assets | 540 | 25 | 2,162 | 101 | ||||||||||||
Merger expenses | - | 2,920 | 11,766 | 4,252 | ||||||||||||
Other expenses | 7,275 | 5,395 | 25,548 | 19,636 | ||||||||||||
Total non-interest expenses | 42,667 | 35,059 | 179,783 | 129,099 | ||||||||||||
Income before income taxes | 34,105 | 20,200 | 132,688 | 87,935 | ||||||||||||
Income tax expense | 8,539 | 11,933 | 31,824 | 34,726 | ||||||||||||
Net income | $ | 25,566 | $ | 8,267 | $ | 100,864 | $ | 53,209 | ||||||||
Net Income Per Share Amounts: | ||||||||||||||||
Basic net income per share | $ | 0.72 | $ | 0.34 | $ | 2.82 | $ | 2.20 | ||||||||
Diluted net income per share | $ | 0.72 | $ | 0.34 | $ | 2.82 | $ | 2.20 | ||||||||
Dividends declared per share | $ | 0.28 | $ | 0.26 | $ | 1.10 | $ | 1.04 |
Sandy Spring Bancorp, Inc. and Subsidiaries
HISTORICAL TRENDS - QUARTERLY FINANCIAL DATA - UNAUDITED
2018 | 2017 | |||||||||||||||||||||||||||||||
(Dollars in thousands, except per share data) | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||||||||||
Profitability for the Quarter: | ||||||||||||||||||||||||||||||||
Tax-equivalent interest income | $ | 86,839 | $ | 85,595 | $ | 79,774 | $ | 76,589 | $ | 52,550 | $ | 51,477 | $ | 50,477 | $ | 47,754 | ||||||||||||||||
Interest expense | 19,462 | 16,783 | 14,779 | 12,613 | 7,184 | 6,892 | 6,250 | 5,705 | ||||||||||||||||||||||||
Tax-equivalent net interest income | 67,377 | 68,812 | 64,995 | 63,976 | 45,366 | 44,585 | 44,227 | 42,049 | ||||||||||||||||||||||||
Tax-equivalent adjustment | 1,232 | 1,221 | 1,177 | 1,085 | 1,874 | 1,888 | 1,901 | 1,796 | ||||||||||||||||||||||||
Provision for loan losses | 3,403 | 1,890 | 1,733 | 1,997 | 527 | 934 | 1,322 | 194 | ||||||||||||||||||||||||
Non-interest income | 14,030 | 15,033 | 14,868 | 17,118 | 12,294 | 12,746 | 13,571 | 12,632 | ||||||||||||||||||||||||
Non-interest expenses | 42,667 | 42,393 | 45,082 | 49,641 | 35,059 | 31,191 | 32,868 | 29,981 | ||||||||||||||||||||||||
Income before income taxes | 34,105 | 38,341 | 31,871 | 28,371 | 20,200 | 23,318 | 21,707 | 22,710 | ||||||||||||||||||||||||
Income tax expense | 8,539 | 9,107 | 7,472 | 6,706 | 11,933 | 8,229 | 6,966 | 7,598 | ||||||||||||||||||||||||
Net income | $ | 25,566 | $ | 29,234 | $ | 24,399 | $ | 21,665 | $ | 8,267 | $ | 15,089 | $ | 14,741 | $ | 15,112 | ||||||||||||||||
Financial Performance: | ||||||||||||||||||||||||||||||||
Pre-tax pre-provision income | $ | 37,508 | $ | 40,811 | $ | 35,832 | $ | 39,326 | $ | 23,647 | $ | 24,597 | $ | 24,016 | $ | 22,904 | ||||||||||||||||
Return on average assets | 1.25 | % | 1.45 | % | 1.23 | % | 1.12 | % | 0.61 | % | 1.13 | % | 1.14 | % | 1.20 | % | ||||||||||||||||
Return on average common equity | 9.70 | % | 11.26 | % | 9.66 | % | 8.70 | % | 5.82 | % | 10.74 | % | 10.80 | % | 11.45 | % | ||||||||||||||||
Net interest margin | 3.57 | % | 3.71 | % | 3.56 | % | 3.58 | % | 3.57 | % | 3.54 | % | 3.60 | % | 3.51 | % | ||||||||||||||||
Efficiency ratio - GAAP basis (1) | 53.22 | % | 51.31 | % | 57.29 | % | 62.04 | % | 62.85 | % | 56.26 | % | 58.80 | % | 56.69 | % | ||||||||||||||||
Efficiency ratio - Non-GAAP basis (1) | 51.78 | % | 49.27 | % | 52.98 | % | 49.54 | % | 55.69 | % | 53.76 | % | 54.10 | % | 54.78 | % | ||||||||||||||||
Per Share Data: | ||||||||||||||||||||||||||||||||
Basic net income per share | $ | 0.72 | $ | 0.82 | $ | 0.68 | $ | 0.61 | $ | 0.34 | $ | 0.62 | $ | 0.61 | $ | 0.63 | ||||||||||||||||
Diluted net income per share | $ | 0.72 | $ | 0.82 | $ | 0.68 | $ | 0.61 | $ | 0.34 | $ | 0.62 | $ | 0.61 | $ | 0.63 | ||||||||||||||||
Average fully diluted shares | 35,747,478 | 35,744,085 | 35,743,927 | 35,683,542 | 24,228,471 | 24,223,004 | 24,262,745 | 24,158,566 | ||||||||||||||||||||||||
Dividends declared per common share | $ | 0.28 | $ | 0.28 | $ | 0.28 | $ | 0.26 | $ | 0.26 | $ | 0.26 | $ | 0.26 | $ | 0.26 | ||||||||||||||||
Non-interest Income: | ||||||||||||||||||||||||||||||||
Securities gains (losses) | $ | 45 | $ | 82 | $ | - | $ | 63 | $ | (2 | ) | $ | - | $ | 1,273 | $ | 2 | |||||||||||||||
Service charges on deposit accounts | 2,459 | 2,316 | 2,290 | 2,259 | 2,177 | 2,140 | 2,017 | 1,964 | ||||||||||||||||||||||||
Mortgage banking activities | 1,130 | 1,672 | 2,064 | 2,207 | 654 | 632 | 840 | 608 | ||||||||||||||||||||||||
Wealth management income | 5,492 | 5,344 | 5,387 | 5,061 | 5,054 | 4,864 | 4,744 | 4,484 | ||||||||||||||||||||||||
Insurance agency commissions | 1,138 | 2,016 | 1,180 | 1,824 | 1,307 | 1,950 | 1,222 | 1,752 | ||||||||||||||||||||||||
Income from bank owned life insurance | 663 | 663 | 670 | 2,331 | 595 | 609 | 605 | 594 | ||||||||||||||||||||||||
Bank card fees | 1,368 | 1,436 | 1,393 | 1,370 | 1,218 | 1,211 | 1,253 | 1,145 | ||||||||||||||||||||||||
Other income | 1,735 | 1,504 | 1,884 | 2,003 | 1,291 | 1,340 | 1,617 | 2,083 | ||||||||||||||||||||||||
Total Non-interest Income | $ | 14,030 | $ | 15,033 | $ | 14,868 | $ | 17,118 | $ | 12,294 | $ | 12,746 | $ | 13,571 | $ | 12,632 | ||||||||||||||||
Non-interest Expense: | ||||||||||||||||||||||||||||||||
Salaries and employee benefits | $ | 23,934 | $ | 24,488 | $ | 24,664 | $ | 23,912 | $ | 18,607 | $ | 18,442 | $ | 18,282 | $ | 17,801 | ||||||||||||||||
Occupancy expense of premises | 4,413 | 4,355 | 4,642 | 4,942 | 3,146 | 3,294 | 3,211 | 3,402 | ||||||||||||||||||||||||
Equipment expenses | 2,426 | 2,441 | 2,243 | 2,225 | 1,802 | 1,722 | 1,767 | 1,724 | ||||||||||||||||||||||||
Marketing | 1,061 | 770 | 945 | 1,148 | 896 | 784 | 776 | 663 | ||||||||||||||||||||||||
Outside data services | 1,763 | 1,736 | 1,707 | 1,397 | 1,441 | 1,286 | 1,367 | 1,392 | ||||||||||||||||||||||||
FDIC insurance | 1,255 | 1,257 | 1,390 | 1,193 | 827 | 850 | 823 | 805 | ||||||||||||||||||||||||
Amortization of intangible assets | 540 | 540 | 541 | 541 | 25 | 25 | 25 | 26 | ||||||||||||||||||||||||
Merger expenses | - | 580 | 2,228 | 8,958 | 2,920 | 345 | 987 | - | ||||||||||||||||||||||||
Professional fees | 1,966 | 1,351 | 1,699 | 1,040 | 1,439 | 1,053 | 1,045 | 955 | ||||||||||||||||||||||||
Other real estate owned expenses | 47 | 36 | 41 | 38 | 14 | 4 | (6 | ) | 5 | |||||||||||||||||||||||
Other expenses | 5,262 | 4,839 | 4,982 | 4,247 | 3,942 | 3,386 | 4,591 | 3,208 | ||||||||||||||||||||||||
Total Non-interest Expense | $ | 42,667 | $ | 42,393 | $ | 45,082 | $ | 49,641 | $ | 35,059 | $ | 31,191 | $ | 32,868 | $ | 29,981 |
(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, merger expenses and loss on FHLB redemption from non-interest expense; securities gains (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
2018 | 2017 | |||||||||||||||||||||||||||||||
(Dollars in thousands) | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||||||||||
Balance Sheets at Quarter End: | ||||||||||||||||||||||||||||||||
Residential mortgage loans | $ | 1,228,247 | $ | 1,181,427 | $ | 1,106,674 | $ | 992,287 | $ | 921,435 | $ | 882,890 | $ | 871,766 | $ | 848,814 | ||||||||||||||||
Residential construction loans | 186,785 | 188,779 | 197,372 | 215,445 | 176,687 | 171,814 | 169,901 | 170,285 | ||||||||||||||||||||||||
Commercial AD&C loans | 681,201 | 631,589 | 609,266 | 564,871 | 292,443 | 295,222 | 314,259 | 309,350 | ||||||||||||||||||||||||
Commercial investor real estate loans | 1,958,395 | 1,924,397 | 1,923,827 | 1,928,439 | 1,112,710 | 1,104,669 | 1,069,988 | 979,410 | ||||||||||||||||||||||||
Commercial owner occupied real estate loans | 1,202,903 | 1,201,673 | 1,184,421 | 1,174,739 | 857,196 | 831,461 | 797,629 | 772,443 | ||||||||||||||||||||||||
Commercial business loans | 797,644 | 738,083 | 702,939 | 652,797 | 497,948 | 451,667 | 451,570 | 457,216 | ||||||||||||||||||||||||
Consumer loans | 517,839 | 523,011 | 525,574 | 532,973 | 455,829 | 456,395 | 458,058 | 455,478 | ||||||||||||||||||||||||
Total loans | 6,573,014 | 6,388,959 | 6,250,073 | 6,061,551 | 4,314,248 | 4,194,118 | 4,133,171 | 3,992,996 | ||||||||||||||||||||||||
Allowance for loan losses | (53,486 | ) | (50,409 | ) | (48,493 | ) | (46,931 | ) | (45,257 | ) | (44,924 | ) | (45,079 | ) | (43,861 | ) | ||||||||||||||||
Loans held for sale | 22,773 | 31,581 | 40,000 | 28,486 | 9,848 | 7,084 | 5,743 | 17,717 | ||||||||||||||||||||||||
Investment securities | 1,010,724 | 992,797 | 1,017,274 | 1,040,339 | 775,025 | 795,922 | 821,491 | 855,707 | ||||||||||||||||||||||||
Interest-earning assets | 7,640,978 | 7,428,534 | 7,532,664 | 7,285,731 | 5,155,928 | 5,049,229 | 4,988,704 | 4,919,927 | ||||||||||||||||||||||||
Total assets | 8,243,272 | 8,034,565 | 8,152,600 | 7,894,918 | 5,446,675 | 5,334,788 | 5,270,521 | 5,201,164 | ||||||||||||||||||||||||
Noninterest-bearing demand deposits | 1,750,319 | 1,902,537 | 1,910,690 | 1,767,523 | 1,264,392 | 1,312,710 | 1,302,536 | 1,234,505 | ||||||||||||||||||||||||
Total deposits | 5,914,880 | 5,898,394 | 5,837,826 | 5,627,206 | 3,963,662 | 3,955,792 | 3,885,445 | 3,799,198 | ||||||||||||||||||||||||
Customer repurchase agreements | 137,429 | 142,669 | 139,647 | 149,323 | 119,359 | 146,569 | 127,312 | 141,244 | ||||||||||||||||||||||||
Total interest-bearing liabilities | 5,378,026 | 5,042,431 | 5,168,055 | 5,057,645 | 3,584,462 | 3,422,568 | 3,380,221 | 3,380,937 | ||||||||||||||||||||||||
Total stockholders' equity | 1,067,903 | 1,042,716 | 1,026,349 | 1,014,608 | 563,816 | 564,480 | 554,683 | 544,261 | ||||||||||||||||||||||||
Quarterly Average Balance Sheets: | ||||||||||||||||||||||||||||||||
Residential mortgage loans | $ | 1,188,135 | $ | 1,122,946 | $ | 1,034,062 | $ | 1,117,478 | $ | 903,660 | $ | 880,782 | $ | 860,081 | $ | 847,896 | ||||||||||||||||
Residential construction loans | 202,710 | 215,578 | 223,171 | 193,327 | 171,239 | 172,921 | 169,130 | 157,152 | ||||||||||||||||||||||||
Commercial AD&C loans | 647,115 | 632,354 | 576,076 | 582,876 | 289,737 | 291,569 | 302,924 | 310,325 | ||||||||||||||||||||||||
Commercial investor real estate loans | 1,936,936 | 1,905,427 | 1,924,759 | 1,988,340 | 1,114,960 | 1,090,641 | 1,010,389 | 945,080 | ||||||||||||||||||||||||
Commercial owner occupied real estate loans | 1,196,506 | 1,190,865 | 1,184,409 | 940,065 | 842,642 | 808,802 | 776,279 | 774,964 | ||||||||||||||||||||||||
Commercial business loans | 751,769 | 700,791 | 666,280 | 657,372 | 454,330 | 459,779 | 454,724 | 462,444 | ||||||||||||||||||||||||
Consumer loans | 522,453 | 524,605 | 531,965 | 538,198 | 458,378 | 457,526 | 461,672 | 458,162 | ||||||||||||||||||||||||
Total loans | 6,445,624 | 6,292,566 | 6,140,722 | 6,017,656 | 4,234,946 | 4,162,020 | 4,035,199 | 3,956,023 | ||||||||||||||||||||||||
Loans held for sale | 21,923 | 29,939 | 25,403 | 35,768 | 5,862 | 7,093 | 7,077 | 7,402 | ||||||||||||||||||||||||
Investment securities | 986,146 | 996,365 | 1,028,306 | 1,062,325 | 780,522 | 813,179 | 842,837 | 818,287 | ||||||||||||||||||||||||
Interest-earning assets | 7,495,353 | 7,372,536 | 7,311,272 | 7,212,878 | 5,061,075 | 5,019,133 | 4,922,389 | 4,829,208 | ||||||||||||||||||||||||
Total assets | 8,105,492 | 7,986,525 | 7,926,735 | 7,841,611 | 5,346,625 | 5,297,368 | 5,202,398 | 5,111,698 | ||||||||||||||||||||||||
Noninterest-bearing demand deposits | 1,766,672 | 1,822,931 | 1,796,644 | 1,651,258 | 1,322,157 | 1,293,470 | 1,251,396 | 1,159,715 | ||||||||||||||||||||||||
Total deposits | 5,822,580 | 5,783,992 | 5,657,420 | 5,489,715 | 3,991,936 | 3,916,657 | 3,810,180 | 3,673,731 | ||||||||||||||||||||||||
Customer repurchase agreements | 146,637 | 139,809 | 148,539 | 136,694 | 139,125 | 133,145 | 132,552 | 128,485 | ||||||||||||||||||||||||
Total interest-bearing liabilities | 5,230,254 | 5,076,717 | 5,058,016 | 5,116,904 | 3,419,669 | 3,407,279 | 3,360,128 | 3,375,002 | ||||||||||||||||||||||||
Total stockholders' equity | 1,045,378 | 1,030,167 | 1,013,081 | 1,010,106 | 563,506 | 557,282 | 547,229 | 535,308 | ||||||||||||||||||||||||
Financial Measures: | ||||||||||||||||||||||||||||||||
Average equity to average assets | 12.90 | % | 12.90 | % | 12.78 | % | 12.88 | % | 10.54 | % | 10.52 | % | 10.52 | % | 10.47 | % | ||||||||||||||||
Investment securities to earning assets | 13.23 | % | 13.36 | % | 13.50 | % | 14.28 | % | 15.03 | % | 15.76 | % | 16.47 | % | 17.39 | % | ||||||||||||||||
Loans to earning assets | 86.02 | % | 86.01 | % | 82.97 | % | 83.20 | % | 83.68 | % | 83.06 | % | 82.85 | % | 81.16 | % | ||||||||||||||||
Loans to assets | 79.74 | % | 79.52 | % | 76.66 | % | 76.78 | % | 79.21 | % | 78.62 | % | 78.42 | % | 76.77 | % | ||||||||||||||||
Loans to deposits | 111.13 | % | 108.32 | % | 107.06 | % | 107.72 | % | 108.85 | % | 106.02 | % | 106.38 | % | 105.10 | % | ||||||||||||||||
Capital Measures: | ||||||||||||||||||||||||||||||||
Tier 1 leverage (1) | 9.51 | % | 9.46 | % | 9.27 | % | 9.21 | % | 9.24 | % | 9.28 | % | 9.26 | % | 9.26 | % | ||||||||||||||||
Tier 1 capital to risk-weighted assets (1) | 11.07 | % | 11.18 | % | 11.01 | % | 11.08 | % | 10.84 | % | 10.99 | % | 10.96 | % | 11.02 | % | ||||||||||||||||
Total regulatory capital to risk-weighted assets (1) | 12.27 | % | 12.38 | % | 12.19 | % | 12.27 | % | 11.85 | % | 12.01 | % | 12.00 | % | 12.06 | % | ||||||||||||||||
Common equity tier 1 capital to risk-weighted assets (1) | 10.91 | % | 11.02 | % | 10.85 | % | 10.92 | % | 10.84 | % | 10.99 | % | 10.96 | % | 11.02 | % | ||||||||||||||||
Book value per share | $ | 30.06 | $ | 29.35 | $ | 28.90 | $ | 28.61 | $ | 23.50 | $ | 23.53 | $ | 23.13 | $ | 22.74 | ||||||||||||||||
Outstanding shares | 35,530,734 | 35,521,541 | 35,511,943 | 35,463,269 | 23,996,293 | 23,990,370 | 23,983,997 | 23,930,165 |
(1) | Estimated ratio at December 31, 2018 |
Sandy Spring Bancorp, Inc. and Subsidiaries
LOAN PORTFOLIO QUALITY DETAIL - UNAUDITED
2018 | 2017 | |||||||||||||||||||||||||||||||
(Dollars in thousands) | December 31, | September 30, | June 30, | March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||||||||||
Non-Performing Assets: | ||||||||||||||||||||||||||||||||
Loans 90 days past due: | ||||||||||||||||||||||||||||||||
Commercial business | $ | 49 | $ | 150 | $ | 6 | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||||||||||
Commercial AD&C | - | 1,261 | - | - | - | - | - | - | ||||||||||||||||||||||||
Commercial investor real estate | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Commercial owner occupied real estate | - | 13 | 112 | - | - | - | 424 | - | ||||||||||||||||||||||||
Consumer | 219 | 563 | - | 126 | - | 1 | 4 | - | ||||||||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||||||||||
Residential mortgage | 221 | - | - | - | 225 | 225 | - | 232 | ||||||||||||||||||||||||
Residential construction | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Total loans 90 days past due | 489 | 1,987 | 118 | 126 | 225 | 226 | 428 | 232 | ||||||||||||||||||||||||
Non-accrual loans: | ||||||||||||||||||||||||||||||||
Commercial business | 7,086 | 6,352 | 6,883 | 6,634 | 6,703 | 6,091 | 6,807 | 4,849 | ||||||||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||||||||||
Commercial AD&C | 3,306 | 136 | 136 | 136 | 136 | 137 | 137 | 137 | ||||||||||||||||||||||||
Commercial investor real estate | 5,355 | 5,861 | 5,878 | 5,813 | 5,575 | 5,589 | 6,934 | 7,970 | ||||||||||||||||||||||||
Commercial owner occupied real estate | 4,234 | 3,352 | 3,440 | 3,524 | 3,582 | 5,012 | 4,926 | 5,106 | ||||||||||||||||||||||||
Consumer | 4,107 | 4,098 | 4,298 | 3,244 | 2,967 | 3,152 | 3,111 | 3,058 | ||||||||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||||||||||
Residential mortgage | 9,336 | 9,134 | 6,251 | 7,063 | 7,196 | 7,345 | 7,101 | 6,908 | ||||||||||||||||||||||||
Residential construction | 159 | 163 | 168 | 174 | 177 | 182 | 187 | 189 | ||||||||||||||||||||||||
Total non-accrual loans | 33,583 | 29,096 | 27,054 | 26,588 | 26,336 | 27,508 | 29,203 | 28,217 | ||||||||||||||||||||||||
Total restructured loans - accruing | 1,942 | 2,224 | 1,663 | 2,678 | 2,788 | 2,471 | 2,569 | 2,409 | ||||||||||||||||||||||||
Total non-performing loans | 36,014 | 33,307 | 28,835 | 29,392 | 29,349 | 30,205 | 32,200 | 30,858 | ||||||||||||||||||||||||
Other assets and real estate owned (OREO) | 1,584 | 2,118 | 2,361 | 2,761 | 2,253 | 1,448 | 1,460 | 1,294 | ||||||||||||||||||||||||
Total non-performing assets | $ | 37,598 | $ | 35,425 | $ | 31,196 | $ | 32,153 | $ | 31,602 | $ | 31,653 | $ | 33,660 | $ | 32,152 |
For the Quarter Ended, | ||||||||||||||||||||||||||||||||
December 31, | September 30, | June 30, | March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||||||||||||
(Dollars in thousands) | 2018 | 2018 | 2018 | 2018 | 2017 | 2017 | 2017 | 2017 | ||||||||||||||||||||||||
Analysis of Non-accrual Loan Activity: | ||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 29,096 | $ | 27,054 | $ | 26,588 | $ | 26,336 | $ | 27,508 | $ | 29,203 | $ | 28,217 | $ | 29,211 | ||||||||||||||||
Non-accrual balances transferred to OREO | - | - | - | (289 | ) | (888 | ) | (411 | ) | (175 | ) | (113 | ) | |||||||||||||||||||
Non-accrual balances charged-off | (360 | ) | (91 | ) | (144 | ) | (411 | ) | (446 | ) | (1,127 | ) | (179 | ) | (391 | ) | ||||||||||||||||
Net payments or draws | (1,126 | ) | (1,777 | ) | (1,635 | ) | (357 | ) | (1,707 | ) | (1,869 | ) | (1,804 | ) | (1,382 | ) | ||||||||||||||||
Loans placed on non-accrual | 5,973 | 4,193 | 2,245 | 1,309 | 2,504 | 1,712 | 3,144 | 1,461 | ||||||||||||||||||||||||
Non-accrual loans brought current | - | (283 | ) | - | - | (635 | ) | - | - | (569 | ) | |||||||||||||||||||||
Balance at end of period | $ | 33,583 | $ | 29,096 | $ | 27,054 | $ | 26,588 | $ | 26,336 | $ | 27,508 | $ | 29,203 | $ | 28,217 | ||||||||||||||||
Analysis of Allowance for Loan Losses: | ||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 50,409 | $ | 48,493 | $ | 46,931 | $ | 45,257 | $ | 44,924 | $ | 45,079 | $ | 43,861 | $ | 44,067 | ||||||||||||||||
Provision for loan losses | 3,403 | 1,890 | 1,733 | 1,997 | 527 | 934 | 1,322 | 194 | ||||||||||||||||||||||||
Less loans charged-off, net of recoveries: | ||||||||||||||||||||||||||||||||
Commercial business | (9 | ) | (49 | ) | (73 | ) | 322 | 48 | 1,029 | 107 | 260 | |||||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||||||||||
Commercial AD&C | - | - | - | (62 | ) | - | - | (103 | ) | - | ||||||||||||||||||||||
Commercial investor real estate | 109 | (49 | ) | (8 | ) | (8 | ) | (8 | ) | (10 | ) | (78 | ) | (5 | ) | |||||||||||||||||
Commercial owner occupied real estate | - | - | - | - | 243 | 5 | - | - | ||||||||||||||||||||||||
Consumer | 45 | 85 | 244 | 99 | (71 | ) | 103 | 189 | 167 | |||||||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||||||||||
Residential mortgage | 183 | (11 | ) | 13 | (22 | ) | (12 | ) | (32 | ) | (3 | ) | (16 | ) | ||||||||||||||||||
Residential construction | (2 | ) | (2 | ) | (5 | ) | (6 | ) | (6 | ) | (6 | ) | (8 | ) | (6 | ) | ||||||||||||||||
Net charge-offs | 326 | (26 | ) | 171 | 323 | 194 | 1,089 | 104 | 400 | |||||||||||||||||||||||
Balance at end of period | $ | 53,486 | $ | 50,409 | $ | 48,493 | $ | 46,931 | $ | 45,257 | $ | 44,924 | $ | 45,079 | $ | 43,861 | ||||||||||||||||
Asset Quality Ratios: | ||||||||||||||||||||||||||||||||
Non-performing loans to total loans | 0.55 | % | 0.52 | % | 0.46 | % | 0.48 | % | 0.68 | % | 0.72 | % | 0.78 | % | 0.77 | % | ||||||||||||||||
Non-performing assets to total assets | 0.46 | % | 0.44 | % | 0.38 | % | 0.41 | % | 0.58 | % | 0.59 | % | 0.64 | % | 0.62 | % | ||||||||||||||||
Allowance for loan losses to loans | 0.81 | % | 0.79 | % | 0.78 | % | 0.77 | % | 1.05 | % | 1.07 | % | 1.09 | % | 1.10 | % | ||||||||||||||||
Allowance for loan losses to non-performing loans | 148.51 | % | 151.35 | % | 168.17 | % | 159.67 | % | 154.20 | % | 148.73 | % | 140.00 | % | 142.14 | % | ||||||||||||||||
Annualized net charge-offs to average loans | 0.02 | % | 0.00 | % | 0.01 | % | 0.02 | % | 0.02 | % | 0.10 | % | 0.01 | % | 0.04 | % |
Sandy Spring Bancorp, Inc. and Subsidiaries
CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES - UNAUDITED
Three Months Ended December 31, | ||||||||||||||||||||||||
2018 | 2017 | |||||||||||||||||||||||
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 | $ | 1,188,135 | $ | 11,348 | 3.82 | % | $ | 903,660 | $ | 7,997 | 3.54 | % | ||||||||||||
Residential construction loans | 202,710 | 2,086 | 4.08 | 171,239 | 1,636 | 3.79 | ||||||||||||||||||
Total mortgage loans | 1,390,845 | 13,434 | 3.86 | 1,074,899 | 9,633 | 3.58 | ||||||||||||||||||
Commercial AD&C loans | 647,115 | 9,466 | 5.80 | 289,737 | 3,718 | 5.09 | ||||||||||||||||||
Commercial investor real estate loans | 1,936,936 | 24,301 | 4.98 | 1,114,960 | 12,580 | 4.48 | ||||||||||||||||||
Commercial owner occupied real estate loans | 1,196,506 | 14,661 | 4.86 | 842,642 | 10,258 | 4.83 | ||||||||||||||||||
Commercial business loans | 751,769 | 10,447 | 5.51 | 454,330 | 5,264 | 4.60 | ||||||||||||||||||
Total commercial loans | 4,532,326 | 58,875 | 5.15 | 2,701,669 | 31,820 | 4.67 | ||||||||||||||||||
Consumer loans | 522,453 | 6,258 | 4.75 | 458,378 | 4,438 | 3.88 | ||||||||||||||||||
Total loans (2) | 6,445,624 | 78,567 | 4.84 | 4,234,946 | 45,891 | 4.31 | ||||||||||||||||||
Loans held for sale | 21,923 | 262 | 4.78 | 5,862 | 6 | 0.38 | ||||||||||||||||||
Taxable securities | 728,560 | 5,471 | 3.00 | 489,020 | 3,428 | 2.80 | ||||||||||||||||||
Tax-exempt securities (3) | 257,586 | 2,314 | 3.59 | 291,502 | 3,095 | 4.25 | ||||||||||||||||||
Total investment securities | 986,146 | 7,785 | 3.16 | 780,522 | 6,523 | 3.34 | ||||||||||||||||||
Interest-bearing deposits with banks | 40,864 | 222 | 2.16 | 36,904 | 121 | 1.30 | ||||||||||||||||||
Federal funds sold | 796 | 3 | 1.51 | 2,841 | 9 | 1.21 | ||||||||||||||||||
Total interest-earning assets | 7,495,353 | 86,839 | 4.60 | 5,061,075 | 52,550 | 4.13 | ||||||||||||||||||
Less: allowance for loan losses | (51,302 | ) | (45,247 | ) | ||||||||||||||||||||
Cash and due from banks | 64,866 | 50,489 | ||||||||||||||||||||||
Premises and equipment, net | 62,219 | 54,741 | ||||||||||||||||||||||
Other assets | 534,356 | 225,567 | ||||||||||||||||||||||
Total assets | $ | 8,105,492 | $ | 5,346,625 | ||||||||||||||||||||
Liabilities and Stockholders' Equity | ||||||||||||||||||||||||
Interest-bearing demand deposits | $ | 695,762 | 226 | 0.13 | % | $ | 625,502 | 135 | 0.09 | % | ||||||||||||||
Regular savings deposits | 334,593 | 82 | 0.10 | 323,367 | 53 | 0.07 | ||||||||||||||||||
Money market savings deposits | 1,601,050 | 5,691 | 1.41 | 1,027,365 | 1,698 | 0.66 | ||||||||||||||||||
Time deposits | 1,424,503 | 6,557 | 1.83 | 693,545 | 2,158 | 1.23 | ||||||||||||||||||
Total interest-bearing deposits | 4,055,908 | 12,556 | 1.23 | 2,669,779 | 4,044 | 0.60 | ||||||||||||||||||
Other borrowings | 214,278 | 570 | 1.06 | 139,125 | 99 | 0.28 | ||||||||||||||||||
Advances from FHLB | 922,620 | 5,851 | 2.52 | 610,765 | 3,041 | 1.98 | ||||||||||||||||||
Subordinated debentures | 37,448 | 485 | 5.18 | - | - | - | ||||||||||||||||||
Total interest-bearing liabilities | 5,230,254 | 19,462 | 1.48 | 3,419,669 | 7,184 | 0.83 | ||||||||||||||||||
Noninterest-bearing demand deposits | 1,766,672 | 1,322,157 | ||||||||||||||||||||||
Other liabilities | 63,188 | 41,293 | ||||||||||||||||||||||
Stockholders' equity | 1,045,378 | 563,506 | ||||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 8,105,492 | $ | 5,346,625 | ||||||||||||||||||||
Net interest income and spread | $ | 67,377 | 3.12 | % | $ | 45,366 | 3.30 | % | ||||||||||||||||
Less: tax-equivalent adjustment | 1,232 | 1,874 | ||||||||||||||||||||||
Net interest income | $ | 66,145 | $ | 43,492 | ||||||||||||||||||||
Interest income/earning assets | 4.60 | % | 4.13 | % | ||||||||||||||||||||
Interest expense/earning assets | 1.03 | 0.56 | ||||||||||||||||||||||
Net interest margin | 3.57 | % | 3.57 | % |
(1) | Tax-equivalent income has been adjusted using the combined marginal federal and state rate of 26.13% and 39.88% for 2018 and 2017 respectively. The annualized taxable-equivalent adjustments utilized in the above table to compute yields aggregated to $1.2 million and $1.9 million in 2018 and 2017, respectively. |
(2) | Non-accrual loans are included in the average balances. |
(3) | 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, | ||||||||||||||||||||||||
2018 | 2017 | |||||||||||||||||||||||
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 | $ | 1,115,869 | $ | 41,628 | 3.73 | % | $ | 873,278 | $ | 30,648 | 3.51 | % | ||||||||||||
Residential construction loans | 208,741 | 8,289 | 3.97 | 167,664 | 6,292 | 3.75 | ||||||||||||||||||
Total mortgage loans | 1,324,610 | 49,917 | 3.77 | 1,040,942 | 36,940 | 3.55 | ||||||||||||||||||
Commercial AD&C loans | 609,844 | 35,058 | 5.75 | 298,563 | 14,844 | 4.97 | ||||||||||||||||||
Commercial investor real estate loans | 1,938,633 | 96,125 | 4.96 | 1,040,871 | 46,558 | 4.47 | ||||||||||||||||||
Commercial owner occupied real estate loans | 1,128,836 | 53,712 | 4.76 | 800,879 | 38,759 | 4.84 | ||||||||||||||||||
Commercial business loans | 694,330 | 36,499 | 5.26 | 457,802 | 20,585 | 4.50 | ||||||||||||||||||
Total commercial loans | 4,371,643 | 221,394 | 5.06 | 2,598,115 | 120,746 | 4.65 | ||||||||||||||||||
Consumer loans | 529,249 | 23,568 | 4.45 | 458,931 | 16,934 | 3.72 | ||||||||||||||||||
Total loans (2) | 6,225,502 | 294,879 | 4.74 | 4,097,988 | 174,620 | 4.26 | ||||||||||||||||||
Loans held for sale | 28,225 | 1,245 | 4.41 | 6,855 | 279 | 4.06 | ||||||||||||||||||
Taxable securities | 736,054 | 21,362 | 2.90 | 517,375 | 14,372 | 2.78 | ||||||||||||||||||
Tax-exempt securities (3) | 281,962 | 9,976 | 3.54 | 296,226 | 12,550 | 4.24 | ||||||||||||||||||
Total investment securities | 1,018,016 | 31,338 | 3.08 | 813,601 | 26,922 | 3.31 | ||||||||||||||||||
Interest-bearing deposits with banks | 74,956 | 1,304 | 1.74 | 37,728 | 410 | 1.09 | ||||||||||||||||||
Federal funds sold | 2,151 | 31 | 1.42 | 2,581 | 27 | 1.03 | ||||||||||||||||||
Total interest-earning assets | 7,348,850 | 328,797 | 4.47 | 4,958,753 | 202,258 | 4.08 | ||||||||||||||||||
Less: allowance for loan losses | (48,483 | ) | (44,557 | ) | ||||||||||||||||||||
Cash and due from banks | 68,183 | 48,765 | ||||||||||||||||||||||
Premises and equipment, net | 61,686 | 53,947 | ||||||||||||||||||||||
Other assets | 535,278 | 223,012 | ||||||||||||||||||||||
Total assets | $ | 7,965,514 | $ | 5,239,920 | ||||||||||||||||||||
Liabilities and Stockholders' Equity | ||||||||||||||||||||||||
Interest-bearing demand deposits | $ | 721,759 | 883 | 0.12 | % | $ | 616,524 | 507 | 0.08 | % | ||||||||||||||
Regular savings deposits | 376,207 | 570 | 0.15 | 322,856 | 216 | 0.07 | ||||||||||||||||||
Money market savings deposits | 1,541,142 | 18,719 | 1.21 | 1,000,965 | 5,031 | 0.50 | ||||||||||||||||||
Time deposits | 1,290,626 | 18,967 | 1.47 | 651,610 | 7,502 | 1.15 | ||||||||||||||||||
Total interest-bearing deposits | 3,929,734 | 39,139 | 1.00 | 2,591,955 | 13,256 | 0.51 | ||||||||||||||||||
Other borrowings | 172,888 | 1,169 | 0.68 | 133,356 | 337 | 0.25 | ||||||||||||||||||
Advances from FHLB | 980,541 | 21,408 | 2.18 | 664,966 | 12,426 | 1.87 | ||||||||||||||||||
Subordinated debentures | 37,501 | 1,921 | 5.13 | 411 | 12 | 2.94 | ||||||||||||||||||
Total interest-bearing liabilities | 5,120,664 | 63,637 | 1.24 | 3,390,688 | 26,031 | 0.77 | ||||||||||||||||||
Noninterest-bearing demand deposits | 1,759,867 | 1,257,231 | ||||||||||||||||||||||
Other liabilities | 60,188 | 41,075 | ||||||||||||||||||||||
Stockholders' equity | 1,024,795 | 550,926 | ||||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 7,965,514 | $ | 5,239,920 | ||||||||||||||||||||
Net interest income and spread | $ | 265,160 | 3.23 | % | $ | 176,227 | 3.31 | % | ||||||||||||||||
Less: tax-equivalent adjustment | 4,715 | 7,459 | ||||||||||||||||||||||
Net interest income | $ | 260,445 | $ | 168,768 | ||||||||||||||||||||
Interest income/earning assets | 4.47 | % | 4.08 | % | ||||||||||||||||||||
Interest expense/earning assets | 0.87 | 0.53 | ||||||||||||||||||||||
Net interest margin | 3.60 | % | 3.55 | % |
(1) | Tax-equivalent income has been adjusted using the combined marginal federal and state rate of 26.13% and 39.88% for 2018 and 2017 respectively. The annualized taxable-equivalent adjustments utilized in the above table to compute yields aggregated to $4.7 million and $7.5 million in 2018 and 2017, respectively. |
(2) | Non-accrual loans are included in the average balances. |
(3) | Includes only investments that are exempt from federal taxes. |