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8-K - SANDY SPRING BANCORP INC | v205649_8k.htm |
NEWS
RELEASE
|
FOR
IMMEDIATE RELEASE
Sandy
Spring Bancorp Inc. Redeems All Remaining Preferred Stock Issued
under
the U.S. Treasury’s Capital Purchase Program
OLNEY,
Maryland (December 15, 2010) – Sandy Spring Bancorp, Inc. (the “Company”)
(Nasdaq: SASR), parent company of Sandy Spring Bank, today announced that it has
redeemed all remaining shares of its Fixed Rate Cumulative Perpetual Preferred
Stock, Series A (the “Preferred Stock”), it sold to the U.S. Department of the
Treasury on December 5, 2008 as part of the Capital Purchase Program established
by the Treasury under the Emergency Economic Stabilization Act of
2008. The Company paid $41,720,112.50 to the Treasury to redeem the
Preferred Stock, consisting of $41,547,000 of principal and $173,112.50 of
accrued and unpaid dividends on December 15, 2010. The Company
previously redeemed half of Treasury’s investment on July 21, 2010.
“Today’s
payment ends our participation in the Treasury’s Capital Purchase Program,” said
Daniel J. Schrider, President and Chief Executive Officer. “Our decision to exit
the program at this time reflects the Company’s strong capital position. Sandy
Spring Bank remains well positioned to meet the needs of our
customers.”
The
preferred stock that the Company repurchased for $41,547,000 had a current
carrying value of $40,379,124 (net of $1,167,876 unaccreted discount) on the
Company’s consolidated balance sheet. As a result of the repurchase, the Company
will accelerate the accretion of the $1,167,876 discount and record a total
reduction in shareholders’ equity of $41,547,000. The accelerated
accretion of the discount will be treated in a manner consistent with that for
preferred dividends in reporting net income available to common shareholders in
the Company’s results of operations for the fourth quarter of
2010. The $165,050 accelerated deemed dividend will be combined with
the previously paid cash dividend of $519,337.50 resulting in a total deemed
dividend of $684,387.50 during the fourth quarter of 2010.
In
conjunction with the Company’s participation in the Capital Purchase Program,
the Treasury also received a warrant to purchase up to 651,547 shares of the
Company’s common stock at an exercise price of $19.13 per share. The Company
intends to seek agreement with the Treasury to repurchase the warrant at its
fair market value. However, there can be no assurance that the Company will
reach agreement with the Treasury as to a fair market value of the warrant, or
that the Company will repurchase the warrant.
About
Sandy Spring Bancorp/Sandy Spring Bank
With $3.6
billion in assets, Sandy Spring Bancorp is the holding company for Sandy Spring
Bank and its principal subsidiaries, Sandy Spring Insurance Corporation, The
Equipment Leasing Company and West Financial Services, Inc. Sandy
Spring Bancorp is the largest publicly traded banking company headquartered and
operating in Maryland. Sandy Spring is a community banking organization that
focuses its lending and other services on businesses and consumers in the local
market area. Independent and community-oriented, Sandy Spring Bank was founded
in 1868 and offers a broad range of commercial banking, retail banking and trust
services through 43 community offices in Anne Arundel, Carroll, Frederick,
Howard, Montgomery, and Prince George’s counties in Maryland, and Fairfax and
Loudoun counties in Virginia. Through its subsidiaries, Sandy Spring Bank also
offers a comprehensive menu of leasing, insurance and investment management
services. Visit www.sandyspringbank.com to locate an ATM near you or 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, Executive V.P. &
Chief Financial Officer
Sandy Spring Bancorp
17801 Georgia Avenue
Olney, Maryland 20832
1-800-399-5919
E-mail:
DSchrider@sandyspringbank.com
PMantua@sandyspringbank.com
Web
site: www.sandyspringbank.com