Attached files
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| 8-K - 8-K CURRENT REPORT - SANDY SPRING BANCORP INC | v237528_8k.htm |
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NEWS RELEASE
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FOR IMMEDIATE RELEASE
SANDY SPRING BANCORP REPORTS INCREASED THIRD QUARTER PROFIT OF $11.3 MILLION
OLNEY, MARYLAND, October 20, 2011 — Sandy Spring Bancorp, Inc., (Nasdaq-SASR) the parent company of Sandy Spring Bank, today announced net income for the third quarter of 2011 of $11.3 million ($.47 per diluted share) compared to net income of $8.5 million ($0.35 per diluted share) for the third quarter of 2010 and net income of $8.3 million ($0.34 per diluted share) for the previous quarter of 2011. The provision for loan and lease losses for the third quarter of 2011 was a credit of $3.5 million compared to a charge of $2.5 million for the third quarter of 2010 and a charge of $1.2 million for the second quarter of 2011.
Net income for the nine-month period ended September 30, 2011 totaled $26.8 million ($1.11 per diluted share) compared to net income of $15.2 million ($0.70 per diluted share) for the prior year period. For the year-to-date, the provision for loan and lease losses reflected a credit of $0.9 million for the first nine months of 2011 compared to a charge of $23.6 million for the prior year period.
“Despite fierce competition in the marketplace, we continue to win our share of quality loans to new and existing clients. This is evidenced by the $167 million in commercial loans we originated during the first nine months of this year. Supported by strong capital and liquidity positions, we continue to take a long term approach to building relationships that are centered on the client experience,” said Daniel J. Schrider, President and Chief Executive Officer. “It is important to note that while loan growth has been limited by the struggling national and regional economies, our core deposit levels have remained strong and we have very conservatively managed the growth in our investment portfolio, which allows us a high degree of flexibility should loan volumes begin to increase.
“The decrease in credit costs for the quarter reflects our declining levels of charge-offs and is a product of our aggressive efforts to address problem loan issues early in the current credit cycle,” according to Schrider.
Third Quarter Highlights:
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·
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The provision for loan and lease losses for the third quarter of 2011 was a credit of $3.5 million compared to a charge of $2.5 million for the third quarter of 2010 and a charge of $1.2 million for the second quarter of 2011 as historical net charge-offs continue to improve.
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·
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Non-performing loans totaled to $82.8 million at September 30, 2011 compared to $93.3 million at September 30, 2010 and $76.5 million at June 30, 2011. This increase over the previous quarter was due primarily to one commercial real estate credit totaling $13.6 million which was placed on non-accrual during the quarter and is adequately collateralized. As a result, the coverage ratio of the allowance for loan and lease losses to non-performing loans decreased to 60% at September 30, 2011 compared to a ratio of 72% at both September 30, 2010 and June 30, 2011.
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·
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Total loans reflected a small increase compared to the second quarter of 2011 due primarily to growth in commercial owner occupied real estate and residential construction loans. New commercial loan originations totaled $167 million for the first nine months of the year compared to $83 million for the prior year period.
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·
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The net interest margin declined to 3.53% for the third quarter of 2011, compared to 3.64% for the third quarter of 2010 and 3.58% for the second quarter of 2011.
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·
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Revenue from wealth management services, which includes fees from trust and investment management and sales of investment products, increased 20% for the third quarter of 2011 compared to the third quarter of 2010 due to growth in average assets under management. This growth was primarily attributable to new client additions.
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Review of Balance Sheet and Credit Quality
Comparing September 30, 2011 balances to September 30, 2010, total assets remained virtually level at $3.6 billion. Total loans and leases decreased 2% to $2.1 billion compared to the prior year. The decrease in loans was due primarily to declines in commercial business and consumer loans which were partially offset by an increase in commercial investor real estate loans. While loan balances have somewhat stabilized over the recent quarters, the general lack of loan demand and increased pay-downs as a result of the current state of the economy has limited the Company’s ability to grow loans. During the current quarter, total loans increased slightly compared to balances at June 30, 2011.
Customer funding sources, which include deposits and other short-term borrowings from customers, increased 1% compared to the third quarter of 2010. This increase was due largely to a 13% increase in noninterest-bearing and interest-bearing checking accounts which more than offset a 9% decline in certificates of deposit as a result of continuing rate reductions reflecting the Company’s net interest margin strategy. Growth in checking accounts was the main driver in the increase in core deposits due to clients’ emphasis on safety and liquidity. Compared to the prior year, money market accounts experienced a 2% decline due mainly to clients’ redeployment of funds into alternative investment products.
Tangible common equity totaled $345.6 million at September 30, 2011 compared to $319.2 million at September 30, 2010 resulting in an increase in the ratio of tangible common equity to tangible assets from 9.06% at September 30, 2010 to 9.75% at September 30, 2011. This increase was due primarily to net income earned during the period. At September 30, 2011, the Company had a total risk-based capital ratio of 16.21%, a tier 1 risk-based capital ratio of 14.96% and a tier 1 leverage ratio of 10.79%.
Non-performing assets totaled $90.8 million at September 30, 2011 compared to $103.6 million at September 30, 2010 and $83.4 million at June 30, 2011. The increase compared to the prior quarter was due primarily to one commercial real estate credit totaling $13.6 million which was placed on non-accrual during the quarter and is considered adequately collateralized. Excluding this one credit, overall credit quality continued to improve as a result of lower net charge-offs, significant pay-downs on other existing problem credits and reduced migration of new credits to non-performing status.
The provision for loan and lease losses was a credit of $3.5 million for the third quarter of 2011 compared to a charge of $2.5 million for the third quarter of 2010 and a charge of $1.2 million for the second quarter of 2011. The decrease in the provision was primarily the result of a lower level of historical net charge-offs.
Loan charge-offs, net of recoveries, totaled $2.0 million for the third quarter of 2011 compared to net charge-offs of $6.5 million for the third quarter of 2010 and net charge-offs of $4.8 million for the second quarter of 2011. The allowance for loan and lease losses represented 2.32% of outstanding loans and leases and 60% of non-performing loans at September 30, 2011 compared to 3.08% of outstanding loans and leases and 72% of non-performing loans at September 30, 2010 and 2.58% of outstanding loans and leases and 72% of non-performing loans at June 30, 2011. Non-performing loans includes accruing loans 90 days or more past due and restructured loans.
Income Statement Review
Net interest income for the third quarter of 2011 decreased by $1.2 million or 4% compared to the third quarter of 2010 due primarily to a decrease in interest income resulting from lower loan balances and the previously mentioned commercial real estate credit placed on non-accrual during the quarter. This decline in interest income was somewhat offset by a decrease in interest expense as average rates paid on deposit products decreased together with a planned run-off in average deposits. These factors resulted in a decline in the net interest margin to 3.53% for the third quarter of 2011 compared to 3.64% for the third quarter of 2010.
Non-interest income increased $0.8 million or 8% to $11.3 million for the third quarter of 2011 compared to $10.5 million for the third quarter of 2010. This increase was due primarily to increases in trust and investment management fees of $0.5 million or 21% and fees on sales of investment products, which increased $0.1 million or 16%, both due largely to higher average assets under management. These increases were partially offset by lower deposit service charges, which declined $0.1 million or 5% as a result of the impact of recently enacted legislation on overdraft fees. In addition, income from mortgage banking activities decreased $0.4 million or 25% due to a lower volume of refinancing activity compared to the third quarter of 2010.
Non-interest expenses were $25.8 million for the third quarter of 2011 compared to $25.1 million in the third quarter of 2010, an increase of $0.7 million or 3%. This increase was driven by an increase of $1.0 million or 8% in salaries and benefits expense due to higher salary and incentive compensation expenses. This increase was partially offset by lower FDIC insurance premiums.
Net interest income for the first nine months of 2011 decreased by $2.2 million or 2.5% compared to the first nine months of 2010 as a result of a decline in interest income due mainly to lower average loan balances and selected loans placed on non-accrual status during this period. The impact of a $7.5 million decline in interest income was substantially mitigated by a $5.3 million decline in interest expense as average rates paid on deposit products decreased, although at a slower pace. This resulted in a net interest margin of 3.59% for both the first nine months of 2011 and 2010.
Non-interest income remained virtually level at $32.1 million for the first nine months of 2011 as compared to the prior year period. Deposit service charges declined $0.9 million or 11% as a result of the impact of recently enacted legislation on overdraft fees. Trust and investment management fees increased $1.3 million or 18% primarily due to growth in average assets under management. Fees on sales of investment products increased $0.3 million or 12% due primarily to an increase in managed assets. These increases in asset management fee income substantially offset the erosion experienced in deposit service fee income. Visa check fees increased $0.3 million or 11% due to a continued increase in the volume of electronic transactions.
Non-interest expenses were $77.7 million in the first nine months of 2011 compared to $74.7 million in the same period of 2010, an increase of $3.0 million or 4%. Salaries and benefits expense increased $2.8 million or 7% due primarily to higher salary and incentive compensation expenses. Other non-interest expenses increased $1.3 million or 12% due largely to losses on sales of other real estate owned and loan work out expenses. These increases were partially offset by lower FDIC insurance premiums.
Conference Call
The Company’s management will host a conference call to discuss its third 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 1-877-317-6789. 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) November 21, 2011. A replay of the teleconference will be available through the same time period by calling 1-877-344-7529 under conference call number 10005260.
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 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 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 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, 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, 2010, 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
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Three Months Ended
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Nine Months Ended
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September 30,
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%
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September 30,
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%
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(Dollars in thousands, except per share data)
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2011
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2010
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Change
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2011
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2010
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Change
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Results of Operations:
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Net interest income
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$ | 28,330 | $ | 29,499 | (4 | )% | $ | 84,494 | $ | 86,654 | (2 | )% | ||||||||||||
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Provision for loan and lease losses
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(3,520 | ) | 2,453 | - | (854 | ) | 23,585 | (104 | ) | |||||||||||||||
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Non-interest income
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11,336 | 10,539 | 8 | 32,130 | 32,060 | - | ||||||||||||||||||
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Non-interest expenses
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25,848 | 25,140 | 3 | 77,748 | 74,711 | 4 | ||||||||||||||||||
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Income before income taxes
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17,338 | 12,445 | 39 | 39,730 | 20,418 | 95 | ||||||||||||||||||
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Net income
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11,257 | 8,484 | 33 | 26,844 | 15,244 | 76 | ||||||||||||||||||
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Net income available to common stockholders
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$ | 11,257 | $ | 6,410 | 76 | $ | 26,844 | $ | 10,767 | 149 | ||||||||||||||
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Return on average assets (1)
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1.24 | % | 0.70 | % | 1.01 | % | 0.40 | % | ||||||||||||||||
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Return on average common equity (1)
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10.42 | % | 6.26 | % | 8.61 | % | 3.96 | % | ||||||||||||||||
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Net interest margin
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3.53 | % | 3.64 | % | 3.59 | % | 3.59 | % | ||||||||||||||||
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Efficiency ratio - GAAP (3)
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65.16 | % | 62.79 | % | 66.67 | % | 62.93 | % | ||||||||||||||||
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Efficiency ratio - Non-GAAP (3)
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62.02 | % | 59.08 | % | 63.29 | % | 59.85 | % | ||||||||||||||||
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Per share data:
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Basic net income
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$ | 0.47 | $ | 0.35 | 33 | % | $ | 1.11 | $ | 0.70 | 59 | % | ||||||||||||
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Basic net income per common share
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0.47 | 0.27 | 73 | 1.11 | 0.49 | 127 | ||||||||||||||||||
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Diluted net income
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0.47 | 0.35 | 33 | 1.11 | 0.70 | 59 | ||||||||||||||||||
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Diluted net income per common share
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0.47 | 0.27 | 73 | 1.11 | 0.49 | 127 | ||||||||||||||||||
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Average fully diluted shares
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24,142,137 | 24,102,497 | - | 24,127,814 | 21,812,412 | 11 | ||||||||||||||||||
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Dividends declared per common share
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0.08 | 0.01 | - | 0.24 | 0.03 | - | ||||||||||||||||||
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Book value per common share
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18.31 | 17.14 | 7 | 18.31 | 17.14 | 7 | ||||||||||||||||||
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Tangible book value per common share
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14.35 | 13.29 | 8 | 14.35 | 13.29 | 8 | ||||||||||||||||||
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Outstanding Common Shares
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24,079,204 | 24,006,748 | - | 24,079,204 | 24,006,748 | - | ||||||||||||||||||
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Financial Condition at period-end:
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Investment securities
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$ | 1,174,180 | $ | 1,099,518 | 7 | % | $ | 1,174,180 | $ | 1,099,518 | 7 | % | ||||||||||||
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Loans and leases
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2,145,403 | 2,185,207 | (2 | ) | 2,145,403 | 2,185,207 | (2 | ) | ||||||||||||||||
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Interest-earning assets
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3,370,360 | 3,343,173 | 1 | 3,370,360 | 3,343,173 | 1 | ||||||||||||||||||
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Assets
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3,626,043 | 3,606,617 | 1 | 3,626,043 | 3,606,617 | 1 | ||||||||||||||||||
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Deposits
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2,640,324 | 2,585,496 | 2 | 2,640,324 | 2,585,496 | 2 | ||||||||||||||||||
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Interest-bearing liabilities
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2,517,180 | 2,547,334 | (1 | ) | 2,517,180 | 2,547,334 | (1 | ) | ||||||||||||||||
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Stockholders' equity
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440,791 | 451,717 | (2 | ) | 440,791 | 451,717 | (2 | ) | ||||||||||||||||
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Capital ratios:
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Tier 1 leverage
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10.79 | % | 11.15 | % | 10.79 | % | 11.15 | % | ||||||||||||||||
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Tier 1 capital to risk-weighted assets
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14.96 | % | 15.29 | % | 14.96 | % | 15.29 | % | ||||||||||||||||
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Total regulatory capital to risk-weighted assets
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16.21 | % | 16.56 | % | 16.21 | % | 16.56 | % | ||||||||||||||||
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Tangible common equity to tangible assets (4)
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9.75 | % | 9.06 | % | 9.75 | % | 9.06 | % | ||||||||||||||||
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Average equity to average assets
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11.87 | % | 12.57 | % | 11.71 | % | 12.14 | % | ||||||||||||||||
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Credit quality ratios:
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Allowance for loan and lease losses to loans and leases
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2.32 | % | 3.08 | % | 2.32 | % | 3.08 | % | ||||||||||||||||
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Non-performing loans to total loans
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3.86 | % | 4.27 | % | 3.86 | % | 4.27 | % | ||||||||||||||||
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Non-performing assets to total assets
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2.50 | % | 2.87 | % | 2.50 | % | 2.87 | % | ||||||||||||||||
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Allowance for loan and lease losses to non-performing loans
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60.01 | % | 72.08 | % | 60.01 | % | 72.08 | % | ||||||||||||||||
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Annualized net charge-offs to average loans and leases (2)
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0.37 | % | 1.18 | % | 0.72 | % | 1.24 | % | ||||||||||||||||
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(1)
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Calculation utilizes net income available to common stockholders.
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(2)
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Calculation utilizes average loans and leases, excluding residential mortgage loans held-for-sale.
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(3)
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The GAAP efficiency ratio is non-interest expenses divided by net interest income plus non-interest income from the Consolidated Statements of Income. The traditional, non-GAAP efficiency ratio excludes intangible asset amortization from non-interest expense; securities gains (losses) from non-interest income; OTTI; and adds the tax-equivalent adjustment to net interest income. See the Reconciliation Table included with these Financial Highlights.
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(4)
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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, other comprehensive losses and preferred stock. See the Reconciliation Table included with these Financial Highlights.
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RECONCILIATION TABLE - UNAUDITED
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Three Months Ended
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Nine Months Ended
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September 30,
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September 30,
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(Dollars in thousands)
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2011
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2010
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2011
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2010
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GAAP efficiency ratio:
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Non-interest expenses
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$ | 25,848 | $ | 25,140 | $ | 77,748 | $ | 74,711 | ||||||||
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Net interest income plus non-interest income
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$ | 39,666 | $ | 40,038 | $ | 116,624 | $ | 118,714 | ||||||||
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Efficiency ratio–GAAP
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65.16 | % | 62.79 | % | 66.67 | % | 62.93 | % | ||||||||
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Non-GAAP efficiency ratio:
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Non-interest expenses
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$ | 25,848 | $ | 25,140 | $ | 77,748 | $ | 74,711 | ||||||||
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Less non-GAAP adjustment:
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Amortization of intangible assets
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461 | 495 | 1,384 | 1,487 | ||||||||||||
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Non-interest expenses as adjusted
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$ | 25,387 | $ | 24,645 | $ | 76,364 | $ | 73,224 | ||||||||
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Net interest income plus non-interest income
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$ | 39,666 | $ | 40,038 | $ | 116,624 | $ | 118,714 | ||||||||
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Plus non-GAAP adjustment:
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Tax-equivalent income
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1,420 | 1,321 | 4,154 | 3,484 | ||||||||||||
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Less non-GAAP adjustments:
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Securities gains
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231 | 25 | 283 | 323 | ||||||||||||
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OTTI recognized in earnings
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(76 | ) | (380 | ) | (160 | ) | (469 | ) | ||||||||
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Net interest income plus non-interest income - as adjusted
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$ | 40,931 | $ | 41,714 | $ | 120,655 | $ | 122,344 | ||||||||
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Efficiency ratio–Non-GAAP
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62.02 | % | 59.08 | % | 63.29 | % | 59.85 | % | ||||||||
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Tangible common equity ratio:
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Total stockholders' equity
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$ | 440,791 | $ | 451,717 | $ | 440,791 | $ | 451,717 | ||||||||
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Accumulated other comprehensive income
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(13,147 | ) | (8,384 | ) | (13,147 | ) | (8,384 | ) | ||||||||
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Goodwill
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(76,816 | ) | (76,816 | ) | (76,816 | ) | (76,816 | ) | ||||||||
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Other intangible assets, net
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(5,195 | ) | (7,050 | ) | (5,195 | ) | (7,050 | ) | ||||||||
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Preferred stock
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- | (40,308 | ) | - | (40,308 | ) | ||||||||||
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Tangible common equity
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$ | 345,633 | $ | 319,159 | $ | 345,633 | $ | 319,159 | ||||||||
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Total assets
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$ | 3,626,043 | $ | 3,606,617 | $ | 3,626,043 | $ | 3,606,617 | ||||||||
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Goodwill
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(76,816 | ) | (76,816 | ) | (76,816 | ) | (76,816 | ) | ||||||||
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Other intangible assets, net
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(5,195 | ) | (7,050 | ) | (5,195 | ) | (7,050 | ) | ||||||||
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Tangible assets
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$ | 3,544,032 | $ | 3,522,751 | $ | 3,544,032 | $ | 3,522,751 | ||||||||
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Tangible common equity ratio
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9.75 | % | 9.06 | % | 9.75 | % | 9.06 | % | ||||||||
Sandy Spring Bancorp, Inc. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF CONDITION - UNAUDITED
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September 30,
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December 31,
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September 30,
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(Dollars in thousands)
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2011
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2010
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2010
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Assets
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Cash and due from banks
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$ | 43,132 | $ | 44,696 | $ | 40,511 | ||||||
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Federal funds sold
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1,146 | 1,813 | 1,522 | |||||||||
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Interest-bearing deposits with banks
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26,535 | 16,608 | 37,692 | |||||||||
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Cash and cash equivalents
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70,813 | 63,117 | 79,725 | |||||||||
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Residential mortgage loans held for sale (at fair value)
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23,096 | 22,717 | 19,234 | |||||||||
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Investments available-for-sale (at fair value)
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952,074 | 907,283 | 960,313 | |||||||||
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Investments held-to-maturity — fair value of $193,432, $104,124 and $111,298 at September 30, 2011, December 31, 2010 and September 30, 2010, respectively
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189,520 | 101,590 | 106,553 | |||||||||
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Other equity securities
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32,586 | 34,070 | 32,652 | |||||||||
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Total loans and leases
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2,145,403 | 2,156,232 | 2,185,207 | |||||||||
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Less: allowance for loan and lease losses
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(49,720 | ) | (62,135 | ) | (67,282 | ) | ||||||
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Net loans and leases
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2,095,683 | 2,094,097 | 2,117,925 | |||||||||
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Premises and equipment, net
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48,750 | 49,004 | 48,175 | |||||||||
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Other real estate owned
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7,938 | 9,493 | 10,011 | |||||||||
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Accrued interest receivable
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12,382 | 12,570 | 13,083 | |||||||||
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Goodwill
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76,816 | 76,816 | 76,816 | |||||||||
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Other intangible assets, net
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5,195 | 6,578 | 7,050 | |||||||||
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Other assets
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111,190 | 142,053 | 135,080 | |||||||||
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Total assets
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$ | 3,626,043 | $ | 3,519,388 | $ | 3,606,617 | ||||||
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Liabilities
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Noninterest-bearing deposits
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$ | 643,169 | $ | 566,812 | $ | 580,309 | ||||||
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Interest-bearing deposits
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1,997,155 | 1,983,060 | 2,005,187 | |||||||||
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Total deposits
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2,640,324 | 2,549,872 | 2,585,496 | |||||||||
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Securities sold under retail repurchase agreements and federal funds purchased
|
79,529 | 96,243 | 97,884 | |||||||||
|
Advances from FHLB
|
405,496 | 405,758 | 409,263 | |||||||||
|
Subordinated debentures
|
35,000 | 35,000 | 35,000 | |||||||||
|
Accrued interest payable and other liabilities
|
24,903 | 24,946 | 27,257 | |||||||||
|
Total liabilities
|
3,185,252 | 3,111,819 | 3,154,900 | |||||||||
|
Stockholders' Equity
|
||||||||||||
|
Preferred stock—par value $1.00 (liquidation preference of $1,000 per share) shares authorized 83,094, issued and outstanding 41,547, net of discount of $1,239 at September 30, 2010
|
- | - | 40,308 | |||||||||
|
Common stock — par value $1.00; shares authorized 50,000,000; shares issued and outstanding 24,079,204, 24,046,627 and 24,006,748 at September 30, 2011, December 31, 2010 and September 30, 2010, respectively
|
24,079 | 24,047 | 24,007 | |||||||||
|
Warrants
|
- | 3,699 | 3,699 | |||||||||
|
Additional paid in capital
|
177,451 | 177,344 | 176,582 | |||||||||
|
Retained earnings
|
226,114 | 205,099 | 198,737 | |||||||||
|
Accumulated other comprehensive income (loss)
|
13,147 | (2,620 | ) | 8,384 | ||||||||
|
Total stockholders' equity
|
440,791 | 407,569 | 451,717 | |||||||||
|
Total liabilities and stockholders' equity
|
$ | 3,626,043 | $ | 3,519,388 | $ | 3,606,617 | ||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
|
September 30,
|
September 30,
|
|||||||||||||||
|
(Dollars in thousands, except per share data)
|
2011
|
2010
|
2011
|
2010
|
||||||||||||
|
Interest Income:
|
||||||||||||||||
|
Interest and fees on loans and leases
|
$ | 26,791 | $ | 29,084 | $ | 80,597 | $ | 87,742 | ||||||||
|
Interest on loans held for sale
|
142 | 148 | 388 | 321 | ||||||||||||
|
Interest on deposits with banks
|
23 | 61 | 62 | 158 | ||||||||||||
|
Interest and dividends on investment securities:
|
||||||||||||||||
|
Taxable
|
5,693 | 6,336 | 16,782 | 18,640 | ||||||||||||
|
Exempt from federal income taxes
|
2,355 | 1,737 | 6,932 | 5,372 | ||||||||||||
|
Interest on federal funds sold
|
- | 1 | 1 | 2 | ||||||||||||
|
Total interest income
|
35,004 | 37,367 | 104,762 | 112,235 | ||||||||||||
|
Interest Expense:
|
||||||||||||||||
|
Interest on deposits
|
2,773 | 3,883 | 8,673 | 13,741 | ||||||||||||
|
Interest on retail repurchase agreements and federal funds purchased
|
49 | 61 | 155 | 198 | ||||||||||||
|
Interest on advances from FHLB
|
3,628 | 3,676 | 10,769 | 10,949 | ||||||||||||
|
Interest on subordinated debt
|
224 | 248 | 671 | 693 | ||||||||||||
|
Total interest expense
|
6,674 | 7,868 | 20,268 | 25,581 | ||||||||||||
|
Net interest income
|
28,330 | 29,499 | 84,494 | 86,654 | ||||||||||||
|
Provision for loan and lease losses
|
(3,520 | ) | 2,453 | (854 | ) | 23,585 | ||||||||||
|
Net interest income after provision for loan and lease losses
|
31,850 | 27,046 | 85,348 | 63,069 | ||||||||||||
|
Non-interest Income:
|
||||||||||||||||
|
Investment securities gains
|
231 | 25 | 283 | 323 | ||||||||||||
|
Total other-than-temporary impairment ("OTTI") losses
|
(76 | ) | (334 | ) | (178 | ) | (1,168 | ) | ||||||||
|
Portion of OTTI losses recognized in other comprehensive income, before taxes
|
- | (46 | ) | 18 | 699 | |||||||||||
|
Net OTTI recognized in earnings
|
(76 | ) | (380 | ) | (160 | ) | (469 | ) | ||||||||
|
Service charges on deposit accounts
|
2,444 | 2,567 | 7,133 | 7,984 | ||||||||||||
|
Mortgage banking activities
|
1,141 | 1,516 | 2,404 | 2,750 | ||||||||||||
|
Fees on sales of investment products
|
905 | 782 | 2,768 | 2,464 | ||||||||||||
|
Trust and investment management fees
|
3,032 | 2,505 | 8,837 | 7,488 | ||||||||||||
|
Insurance agency commissions
|
1,044 | 978 | 3,177 | 3,895 | ||||||||||||
|
Income from bank owned life insurance
|
662 | 709 | 1,962 | 2,105 | ||||||||||||
|
Visa check fees
|
927 | 843 | 2,710 | 2,438 | ||||||||||||
|
Other income
|
1,026 | 994 | 3,016 | 3,082 | ||||||||||||
|
Total non-interest income
|
11,336 | 10,539 | 32,130 | 32,060 | ||||||||||||
|
Non-interest Expenses:
|
||||||||||||||||
|
Salaries and employee benefits
|
14,892 | 13,841 | 44,192 | 41,393 | ||||||||||||
|
Occupancy expense of premises
|
2,784 | 2,826 | 8,717 | 8,625 | ||||||||||||
|
Equipment expenses
|
1,143 | 1,137 | 3,413 | 3,655 | ||||||||||||
|
Marketing
|
468 | 589 | 1,662 | 1,678 | ||||||||||||
|
Outside data services
|
1,073 | 966 | 3,067 | 3,007 | ||||||||||||
|
FDIC insurance
|
709 | 1,056 | 2,489 | 3,383 | ||||||||||||
|
Amortization of intangible assets
|
461 | 495 | 1,384 | 1,487 | ||||||||||||
|
Other expenses
|
4,318 | 4,230 | 12,824 | 11,483 | ||||||||||||
|
Total non-interest expenses
|
25,848 | 25,140 | 77,748 | 74,711 | ||||||||||||
|
Income before income taxes
|
17,338 | 12,445 | 39,730 | 20,418 | ||||||||||||
|
Income tax expense
|
6,081 | 3,961 | 12,886 | 5,174 | ||||||||||||
|
Net income
|
$ | 11,257 | $ | 8,484 | $ | 26,844 | $ | 15,244 | ||||||||
|
Preferred stock dividends and discount accretion
|
- | 2,074 | - | 4,477 | ||||||||||||
|
Net income available to common stockholders
|
$ | 11,257 | $ | 6,410 | $ | 26,844 | $ | 10,767 | ||||||||
|
Net Income Per Share Amounts:
|
||||||||||||||||
|
Basic net income per share
|
$ | 0.47 | $ | 0.35 | $ | 1.11 | $ | 0.70 | ||||||||
|
Basic net income per common share
|
0.47 | 0.27 | 1.11 | 0.49 | ||||||||||||
|
Diluted net income per share
|
$ | 0.47 | $ | 0.35 | $ | 1.11 | $ | 0.70 | ||||||||
|
Diluted net income per common share
|
0.47 | 0.27 | 1.11 | 0.49 | ||||||||||||
|
Dividends declared per common share
|
$ | 0.08 | $ | 0.01 | $ | 0.24 | $ | 0.03 | ||||||||
HISTORICAL TRENDS - QUARTERLY FINANCIAL DATA - UNAUDITED
|
2011
|
2010
|
|||||||||||||||||||||||||||
|
(Dollars in thousands, except per share data)
|
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||
|
Profitability for the quarter:
|
||||||||||||||||||||||||||||
|
Tax-equivalent interest income
|
$ | 36,424 | $ | 36,435 | $ | 36,057 | $ | 37,466 | $ | 38,688 | $ | 38,663 | $ | 38,368 | ||||||||||||||
|
Interest expense
|
6,674 | 6,854 | 6,740 | 7,161 | 7,868 | 8,512 | 9,201 | |||||||||||||||||||||
|
Tax-equivalent net interest income
|
29,750 | 29,581 | 29,317 | 30,305 | 30,820 | 30,151 | 29,167 | |||||||||||||||||||||
|
Tax-equivalent adjustment
|
1,420 | 1,427 | 1,307 | 1,352 | 1,321 | 1,155 | 1,008 | |||||||||||||||||||||
|
Provision for loan and lease losses
|
(3,520 | ) | 1,151 | 1,515 | 2,323 | 2,453 | 6,107 | 15,025 | ||||||||||||||||||||
|
Non-interest income
|
11,336 | 10,802 | 9,992 | 11,722 | 10,539 | 10,674 | 10,847 | |||||||||||||||||||||
|
Non-interest expenses
|
25,848 | 25,838 | 26,062 | 26,201 | 25,140 | 24,758 | 24,813 | |||||||||||||||||||||
|
Income (loss) before income taxes
|
17,338 | 11,967 | 10,425 | 12,151 | 12,445 | 8,805 | (832 | ) | ||||||||||||||||||||
|
Income tax expense (benefit)
|
6,081 | 3,671 | 3,134 | 3,875 | 3,961 | 2,546 | (1,333 | ) | ||||||||||||||||||||
|
Net Income
|
11,257 | 8,296 | 7,291 | 8,276 | 8,484 | 6,259 | 501 | |||||||||||||||||||||
|
Net Income (loss) available to common stockholders
|
$ | 11,257 | $ | 8,296 | $ | 7,291 | $ | 6,604 | $ | 6,410 | $ | 5,056 | $ | (699 | ) | |||||||||||||
|
Financial ratios:
|
||||||||||||||||||||||||||||
|
Return on average assets
|
1.24 | % | 0.93 | % | 0.84 | % | 0.73 | % | 0.70 | % | 0.56 | % | (0.08 | )% | ||||||||||||||
|
Return on average common equity
|
10.42 | % | 8.03 | % | 7.26 | % | 6.34 | % | 6.26 | % | 5.13 | % | (0.92 | )% | ||||||||||||||
|
Return on average tangible common equity
|
12.90 | % | 10.03 | % | 9.13 | % | 9.06 | % | 9.08 | % | 6.42 | % | 0.67 | % | ||||||||||||||
|
Net interest margin
|
3.53 | % | 3.58 | % | 3.65 | % | 3.61 | % | 3.64 | % | 3.58 | % | 3.56 | % | ||||||||||||||
|
Efficiency ratio - GAAP (1)
|
65.16 | % | 66.33 | % | 68.58 | % | 64.42 | % | 62.79 | % | 62.41 | % | 63.61 | % | ||||||||||||||
|
Efficiency ratio - Non-GAAP (1)
|
62.02 | % | 62.82 | % | 65.09 | % | 61.85 | % | 59.08 | % | 59.44 | % | 61.08 | % | ||||||||||||||
|
Per share data:
|
||||||||||||||||||||||||||||
|
Basic net income per share
|
$ | 0.47 | $ | 0.34 | $ | 0.30 | $ | 0.34 | $ | 0.35 | $ | 0.26 | $ | 0.03 | ||||||||||||||
|
Basic net income (loss) per common share
|
0.47 | 0.34 | 0.30 | 0.27 | 0.27 | 0.21 | (0.04 | ) | ||||||||||||||||||||
|
Diluted net income per share
|
0.47 | 0.34 | 0.30 | 0.34 | 0.35 | 0.26 | 0.03 | |||||||||||||||||||||
|
Diluted net income (loss) per common share
|
0.47 | 0.34 | 0.30 | 0.27 | 0.27 | 0.21 | (0.04 | ) | ||||||||||||||||||||
|
Average fully diluted shares
|
24,142,137 | 24,130,357 | 24,115,906 | 24,087,482 | 24,102,497 | 24,033,158 | 17,243,415 | |||||||||||||||||||||
|
Dividends declared per common share
|
$ | 0.08 | $ | 0.08 | $ | 0.08 | $ | 0.01 | $ | 0.01 | $ | 0.01 | $ | 0.01 | ||||||||||||||
|
Non-interest income:
|
||||||||||||||||||||||||||||
|
Securities gains
|
$ | 231 | $ | 32 | $ | 20 | $ | 473 | $ | 25 | $ | 95 | $ | 203 | ||||||||||||||
|
Net OTTI recognized in earnings
|
(76 | ) | (43 | ) | (41 | ) | (43 | ) | (380 | ) | (89 | ) | - | |||||||||||||||
|
Service charges on deposit accounts
|
2,444 | 2,437 | 2,252 | 2,342 | 2,567 | 2,791 | 2,626 | |||||||||||||||||||||
|
Mortgage banking activities
|
1,141 | 808 | 455 | 914 | 1,516 | 806 | 428 | |||||||||||||||||||||
|
Fees on sales of investment products
|
905 | 1,005 | 858 | 974 | 782 | 941 | 741 | |||||||||||||||||||||
|
Trust and investment management fees
|
3,032 | 3,018 | 2,787 | 2,799 | 2,505 | 2,534 | 2,449 | |||||||||||||||||||||
|
Insurance agency commissions
|
1,044 | 953 | 1,180 | 1,334 | 978 | 928 | 1,989 | |||||||||||||||||||||
|
Income from bank owned life insurance
|
662 | 654 | 646 | 695 | 709 | 703 | 693 | |||||||||||||||||||||
|
Visa check fees
|
927 | 949 | 834 | 887 | 843 | 855 | 740 | |||||||||||||||||||||
|
Other income
|
1,026 | 989 | 1,001 | 1,347 | 994 | 1,110 | 978 | |||||||||||||||||||||
|
Total non-interest income
|
$ | 11,336 | $ | 10,801 | $ | 9,992 | $ | 11,722 | $ | 10,539 | $ | 10,674 | $ | 10,847 | ||||||||||||||
|
Non-interest expense:
|
||||||||||||||||||||||||||||
|
Salaries and employee benefits
|
$ | 14,892 | $ | 14,676 | $ | 14,624 | $ | 14,077 | $ | 13,841 | $ | 14,181 | $ | 13,371 | ||||||||||||||
|
Occupancy expense of premises
|
2,784 | 2,790 | 3,143 | 2,852 | 2,826 | 2,709 | 3,090 | |||||||||||||||||||||
|
Equipment expenses
|
1,143 | 1,128 | 1,142 | 1,153 | 1,137 | 1,304 | 1,214 | |||||||||||||||||||||
|
Marketing
|
468 | 709 | 485 | 681 | 589 | 573 | 516 | |||||||||||||||||||||
|
Outside data services
|
1,073 | 999 | 995 | 985 | 966 | 918 | 1,123 | |||||||||||||||||||||
|
FDIC insurance
|
709 | 736 | 1,044 | 1,114 | 1,056 | 1,186 | 1,141 | |||||||||||||||||||||
|
Amortization of intangible assets
|
461 | 462 | 461 | 472 | 495 | 496 | 496 | |||||||||||||||||||||
|
Professional fees
|
1,314 | 1,088 | 1,126 | 1,842 | 1,337 | 1,189 | 1,218 | |||||||||||||||||||||
|
Other real estate owned expenses
|
383 | 726 | 699 | 443 | 236 | (55 | ) | 352 | ||||||||||||||||||||
|
Other expenses
|
2,621 | 2,524 | 2,343 | 2,582 | 2,657 | 2,257 | 2,292 | |||||||||||||||||||||
|
Total non-interest expense
|
$ | 25,848 | $ | 25,838 | $ | 26,062 | $ | 26,201 | $ | 25,140 | $ | 24,758 | $ | 24,813 | ||||||||||||||
(1) The GAAP efficiency ratio is non-interest expenses divided by net interest income plus non-interest income from the Consolidated Statements of Income. The traditional, non-GAAP efficiency ratio 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.
HISTORICAL TRENDS - QUARTERLY FINANCIAL DATA - UNAUDITED
|
2011
|
2010
|
|||||||||||||||||||||||||||
|
(Dollars in thousands)
|
Q3
|
Q2
|
Q1
|
Q4
|
Q3
|
Q2
|
Q1
|
|||||||||||||||||||||
|
Balance sheets at quarter end:
|
||||||||||||||||||||||||||||
|
Residential mortgage loans
|
$ | 440,606 | $ | 445,605 | $ | 444,519 | $ | 436,534 | $ | 442,723 | $ | 458,502 | $ | 460,129 | ||||||||||||||
|
Residential construction loans
|
90,727 | 81,425 | 84,939 | 91,273 | 92,485 | 86,393 | 83,902 | |||||||||||||||||||||
|
Commercial ADC loans
|
141,576 | 149,215 | 151,135 | 151,061 | 153,139 | 155,751 | 177,498 | |||||||||||||||||||||
|
Commercial investor real estate loans
|
357,358 | 353,749 | 355,967 | 327,782 | 335,426 | 328,244 | 316,336 | |||||||||||||||||||||
|
Commercial owner occupied real estate loans
|
519,837 | 511,271 | 509,215 | 503,286 | 511,453 | 511,673 | 518,271 | |||||||||||||||||||||
|
Commercial business loans
|
226,528 | 225,624 | 231,448 | 250,255 | 240,671 | 263,886 | 279,520 | |||||||||||||||||||||
|
Leasing
|
8,484 | 10,200 | 12,477 | 15,551 | 17,895 | 20,823 | 23,474 | |||||||||||||||||||||
|
Consumer loans
|
360,287 | 360,831 | 360,349 | 380,490 | 391,415 | 393,560 | 397,527 | |||||||||||||||||||||
|
Total loans and leases
|
2,145,403 | 2,137,920 | 2,150,049 | 2,156,232 | 2,185,207 | 2,218,832 | 2,256,657 | |||||||||||||||||||||
|
Allowance for loan and lease losses
|
(49,720 | ) | (55,246 | ) | (58,918 | ) | (62,135 | ) | (67,282 | ) | (71,377 | ) | (69,575 | ) | ||||||||||||||
|
Investment securities
|
1,174,180 | 1,128,589 | 1,087,620 | 1,042,943 | 1,099,518 | 1,062,541 | 985,966 | |||||||||||||||||||||
|
Interest-earning assets
|
3,370,360 | 3,322,317 | 3,283,819 | 3,240,313 | 3,343,173 | 3,437,731 | 3,401,162 | |||||||||||||||||||||
|
Total assets
|
3,626,043 | 3,612,013 | 3,549,533 | 3,519,388 | 3,606,617 | 3,701,150 | 3,673,246 | |||||||||||||||||||||
|
Noninterest-bearing demand deposits
|
643,169 | 648,605 | 619,905 | 566,812 | 580,309 | 593,007 | 560,027 | |||||||||||||||||||||
|
Total deposits
|
2,640,324 | 2,657,861 | 2,599,634 | 2,549,872 | 2,585,496 | 2,659,956 | 2,653,448 | |||||||||||||||||||||
|
Customer repurchase agreements
|
79,529 | 65,214 | 75,516 | 86,243 | 97,884 | 86,062 | 78,416 | |||||||||||||||||||||
|
Total interest-bearing liabilities
|
2,517,180 | 2,515,053 | 2,495,916 | 2,520,061 | 2,547,334 | 2,597,445 | 2,618,178 | |||||||||||||||||||||
|
Total stockholders' equity
|
440,791 | 423,984 | 409,076 | 407,569 | 451,717 | 483,681 | 471,857 | |||||||||||||||||||||
|
Quarterly average balance sheets:
|
||||||||||||||||||||||||||||
|
Residential mortgage loans
|
$ | 453,645 | $ | 455,803 | $ | 458,329 | $ | 461,700 | $ | 466,437 | $ | 467,970 | $ | 462,803 | ||||||||||||||
|
Residential construction loans
|
89,128 | 84,144 | 85,891 | 92,033 | 87,522 | 85,617 | 89,732 | |||||||||||||||||||||
|
Commercial ADC loans
|
145,835 | 149,773 | 149,071 | 155,795 | 154,863 | 165,510 | 182,918 | |||||||||||||||||||||
|
Commercial investor real estate loans
|
350,925 | 352,668 | 340,008 | 330,717 | 335,279 | 324,717 | 317,671 | |||||||||||||||||||||
|
Commercial owner occupied real estate loans
|
515,185 | 509,273 | 500,875 | 505,248 | 512,370 | 512,997 | 522,398 | |||||||||||||||||||||
|
Commercial business loans
|
225,041 | 225,646 | 236,949 | 240,083 | 253,058 | 271,839 | 292,844 | |||||||||||||||||||||
|
Leasing
|
9,269 | 11,154 | 14,009 | 16,562 | 19,295 | 22,329 | 24,648 | |||||||||||||||||||||
|
Consumer loans
|
360,875 | 362,098 | 367,261 | 387,375 | 393,491 | 395,833 | 398,233 | |||||||||||||||||||||
|
Total loans and leases
|
2,149,903 | 2,150,559 | 2,152,393 | 2,189,513 | 2,222,315 | 2,246,812 | 2,291,247 | |||||||||||||||||||||
|
Investment securities
|
1,168,712 | 1,121,325 | 1,054,740 | 1,112,128 | 1,058,175 | 1,013,756 | 970,681 | |||||||||||||||||||||
|
Total earning assets
|
3,355,937 | 3,305,059 | 3,237,556 | 3,332,705 | 3,360,758 | 3,379,388 | 3,318,070 | |||||||||||||||||||||
|
Total assets
|
3,610,219 | 3,566,278 | 3,500,807 | 3,594,812 | 3,620,881 | 3,645,090 | 3,591,786 | |||||||||||||||||||||
|
Noninterest-bearing demand deposits
|
631,192 | 607,092 | 582,441 | 587,570 | 568,835 | 547,245 | 524,313 | |||||||||||||||||||||
|
Total deposits
|
2,640,729 | 2,607,854 | 2,548,117 | 2,584,025 | 2,607,190 | 2,612,633 | 2,640,853 | |||||||||||||||||||||
|
Customer repurchase agreements
|
72,646 | 70,313 | 79,067 | 92,049 | 87,927 | 85,178 | 81,622 | |||||||||||||||||||||
|
Total interest-bearing liabilities
|
2,524,728 | 2,519,114 | 2,485,451 | 2,534,716 | 2,571,000 | 2,596,353 | 2,653,187 | |||||||||||||||||||||
|
Total stockholders' equity
|
428,511 | 414,624 | 407,007 | 446,256 | 455,101 | 475,521 | 387,099 | |||||||||||||||||||||
|
Capital measures:
|
||||||||||||||||||||||||||||
|
Average equity to average assets
|
11.87 | % | 11.63 | % | 11.63 | % | 12.41 | % | 12.57 | % | 13.05 | % | 10.78 | % | ||||||||||||||
|
Tangible common equity to tangible assets (4)
|
9.75 | % | 9.51 | % | 9.47 | % | 9.51 | % | 9.06 | % | 8.63 | % | 8.53 | % | ||||||||||||||
|
Tier 1 leverage
|
10.79 | % | 10.64 | % | 10.63 | % | 10.30 | % | 11.15 | % | 12.00 | % | 12.01 | % | ||||||||||||||
|
Tier 1 capital to risk-weighted assets
|
14.96 | % | 14.75 | % | 14.21 | % | 14.11 | % | 15.29 | % | 16.50 | % | 15.77 | % | ||||||||||||||
|
Total regulatory capital to risk-weighted assets
|
16.21 | % | 16.01 | % | 15.48 | % | 15.37 | % | 16.56 | % | 17.77 | % | 17.04 | % | ||||||||||||||
|
Book value per common share
|
$ | 18.31 | $ | 17.58 | $ | 16.99 | $ | 16.95 | $ | 17.14 | $ | 16.80 | $ | 16.33 | ||||||||||||||
|
Tangible book value per common share
|
14.35 | 13.93 | 13.64 | 13.59 | 13.29 | 13.00 | 12.77 | |||||||||||||||||||||
|
Outstanding common shares
|
24,079,204 | 24,095,123 | 24,084,423 | 24,046,627 | 24,006,748 | 23,998,950 | 23,985,149 | |||||||||||||||||||||
LOAN PORTFOLIO QUALITY DETAIL - UNAUDITED
|
2011
|
2010
|
|||||||||||||||||||||||||||
|
(dollars in thousands)
|
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
|
$ | - | $ | - | $ | - | $ | 19 | $ | 56 | $ | 357 | $ | 3,829 | ||||||||||||||
|
Commercial real estate:
|
||||||||||||||||||||||||||||
|
Commercial AD&C
|
- | - | - | - | - | - | - | |||||||||||||||||||||
|
Commercial investor real estate
|
- | - | - | - | 944 | - | - | |||||||||||||||||||||
|
Commercial owner occupied real estate
|
- | - | - | - | 317 | 160 | - | |||||||||||||||||||||
|
Leasing
|
63 | 20 | 24 | 407 | 409 | 582 | 163 | |||||||||||||||||||||
|
Consumer
|
373 | 337 | 169 | 182 | 550 | 745 | 848 | |||||||||||||||||||||
|
Residential real estate:
|
||||||||||||||||||||||||||||
|
Residential mortgage
|
2,291 | 3,820 | 4,616 | 9,871 | 12,545 | 18,131 | 16,879 | |||||||||||||||||||||
|
Residential construction
|
- | - | 2,367 | 3,675 | 3,447 | 4,251 | 3,366 | |||||||||||||||||||||
|
Total loans and leases 90 days past due
|
2,727 | 4,177 | 7,176 | 14,154 | 18,268 | 24,226 | 25,085 | |||||||||||||||||||||
|
Non-accrual loans and leases:
|
||||||||||||||||||||||||||||
|
Commercial business
|
8,038 | 8,288 | 9,649 | 7,938 | 10,747 | 14,512 | 17,600 | |||||||||||||||||||||
|
Commercial real estate:
|
||||||||||||||||||||||||||||
|
Commercial AD&C
|
24,481 | 26,133 | 28,310 | 30,417 | 44,175 | 47,341 | 72,021 | |||||||||||||||||||||
|
Commercial investor real estate
|
16,118 | 2,975 | 2,519 | 1,753 | 1,160 | 1,160 | 1,171 | |||||||||||||||||||||
|
Commercial owner occupied real estate
|
11,847 | 13,019 | 12,304 | 11,781 | 10,197 | 11,620 | 9,327 | |||||||||||||||||||||
|
Leasing
|
956 | 1,017 | 1,529 | 1,887 | 1,903 | 1,621 | 1,472 | |||||||||||||||||||||
|
Consumer
|
1,478 | 590 | 720 | 300 | 20 | 227 | 604 | |||||||||||||||||||||
|
Residential real estate:
|
||||||||||||||||||||||||||||
|
Residential mortgage
|
6,081 | 6,295 | 6,652 | 3,946 | 2,149 | 3,011 | 4,120 | |||||||||||||||||||||
|
Residential construction
|
5,034 | 5,701 | 5,222 | 5,305 | 3,525 | 4,395 | 4,404 | |||||||||||||||||||||
|
Total non-accrual loans and lease
|
74,033 | 64,018 | 66,905 | 63,327 | 73,876 | 83,887 | 110,719 | |||||||||||||||||||||
|
Total restructured loans - accruing
|
6,088 | 8,299 | 14,266 | 10,571 | 1,199 | 1,199 | 682 | |||||||||||||||||||||
|
Total non-performing loans and leases
|
82,848 | 76,494 | 88,347 | 88,052 | 93,343 | 109,312 | 136,486 | |||||||||||||||||||||
|
Other assets and real estate owned (OREO)
|
7,938 | 6,951 | 7,960 | 9,493 | 10,011 | 8,730 | 6,796 | |||||||||||||||||||||
|
Other assets owned
|
- | - | - | 200 | 200 | - | - | |||||||||||||||||||||
|
Total non-performing assets
|
$ | 90,786 | $ | 83,445 | $ | 96,307 | $ | 97,745 | $ | 103,554 | $ | 118,042 | $ | 143,282 | ||||||||||||||
|
For the quarter ended,
|
||||||||||||||||||||||||||||
|
September 30,
|
June 30,
|
March 31,
|
December 31,
|
September 30,
|
June 30,
|
March 31,
|
||||||||||||||||||||||
|
2011
|
2011
|
2011
|
2010
|
2010
|
2010
|
2010
|
||||||||||||||||||||||
|
Analysis of non-accrual loan and lease activity
|
||||||||||||||||||||||||||||
|
Balance at beginning of period
|
$ | 64,018 | $ | 66,905 | $ | 63,327 | $ | 73,876 | $ | 83,887 | $ | 110,719 | $ | 111,181 | ||||||||||||||
|
Non-accrual balances transferred to OREO
|
(142 | ) | (791 | ) | (535 | ) | (222 | ) | (1,119 | ) | (540 | ) | (1,982 | ) | ||||||||||||||
|
Non-accrual balances charged-off
|
(1,375 | ) | (2,112 | ) | (2,701 | ) | (7,288 | ) | (3,664 | ) | (4,599 | ) | (8,642 | ) | ||||||||||||||
|
Net payments or draws
|
(4,839 | ) | (8,016 | ) | (2,531 | ) | (16,191 | ) | (4,288 | ) | (25,043 | ) | (2,179 | ) | ||||||||||||||
|
Loans placed on non-accrual
|
17,226 | 8,032 | 9,526 | 13,152 | 2,656 | 5,640 | 12,537 | |||||||||||||||||||||
|
Non-accrual loans brought current
|
(855 | ) | - | (181 | ) | - | (3,596 | ) | (2,290 | ) | (196 | ) | ||||||||||||||||
|
Balance at end of period
|
$ | 74,033 | $ | 64,018 | $ | 66,905 | $ | 63,327 | $ | 73,876 | $ | 83,887 | $ | 110,719 | ||||||||||||||
|
Analysis of Allowance for Loan Losses:
|
||||||||||||||||||||||||||||
|
Balance at beginning of period
|
$ | 55,246 | $ | 58,918 | $ | 62,135 | $ | 67,282 | $ | 71,377 | $ | 69,575 | $ | 64,559 | ||||||||||||||
|
Provision for loan and lease losses
|
(3,520 | ) | 1,151 | 1,515 | 2,323 | 2,453 | 6,107 | 15,025 | ||||||||||||||||||||
|
Less loans charged-off, net of recoveries:
|
||||||||||||||||||||||||||||
|
Commercial business
|
397 | 769 | 790 | 1,651 | 1,469 | (1,325 | ) | 2,395 | ||||||||||||||||||||
|
Commercial real estate:
|
||||||||||||||||||||||||||||
|
Commercial AD&C
|
151 | 253 | (137 | ) | 2,990 | 1,923 | 2,656 | 4,914 | ||||||||||||||||||||
|
Commercial investor real estate
|
30 | 504 | (4 | ) | 231 | (1 | ) | - | - | |||||||||||||||||||
|
Commercial owner occupied real estate
|
45 | 113 | - | 464 | 164 | 515 | 544 | |||||||||||||||||||||
|
Leasing
|
85 | 455 | 333 | 3 | - | 98 | 2 | |||||||||||||||||||||
|
Consumer
|
375 | 713 | 1,091 | 610 | 642 | 947 | 1,072 | |||||||||||||||||||||
|
Residential real estate:
|
||||||||||||||||||||||||||||
|
Residential mortgage
|
751 | 1,319 | 2,095 | 1,396 | 2,170 | 1,333 | 793 | |||||||||||||||||||||
|
Residential construction
|
172 | 697 | 564 | 125 | 181 | 81 | 289 | |||||||||||||||||||||
|
Net charge-offs
|
2,006 | 4,823 | 4,732 | 7,470 | 6,548 | 4,305 | 10,009 | |||||||||||||||||||||
|
Balance at end of period
|
$ | 49,720 | $ | 55,246 | $ | 58,918 | $ | 62,135 | $ | 67,282 | $ | 71,377 | $ | 69,575 | ||||||||||||||
|
Asset Quality Ratios:
|
||||||||||||||||||||||||||||
|
Non-performing loans to total loans
|
3.86 | % | 3.58 | % | 4.11 | % | 4.08 | % | 4.27 | % | 4.93 | % | 6.05 | % | ||||||||||||||
|
Non-performing assets to total assets
|
2.50 | % | 2.31 | % | 2.71 | % | 2.78 | % | 2.87 | % | 3.19 | % | 3.90 | % | ||||||||||||||
|
Allowance for loan losses to loans
|
2.32 | % | 2.58 | % | 2.74 | % | 2.88 | % | 3.08 | % | 3.22 | % | 3.08 | % | ||||||||||||||
|
Allowance for loan losses to non-performing loans
|
60.01 | % | 72.22 | % | 66.69 | % | 70.57 | % | 72.08 | % | 65.30 | % | 50.98 | % | ||||||||||||||
|
Net charge-offs in quarter to average loans
|
0.37 | % | 0.90 | % | 0.89 | % | 1.37 | % | 1.18 | % | 0.77 | % | 1.78 | % | ||||||||||||||
Sandy Spring Bancorp, Inc. and Subsidiaries
CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES - UNAUDITED
|
Three Months Ended September 30,
|
||||||||||||||||||||||||
| 2011 | 2010 | |||||||||||||||||||||||
|
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 (3)
|
$ | 453,645 | $ | 5,375 | 4.74 | % | $ | 466,437 | $ | 6,081 | 5.23 | % | ||||||||||||
|
Residential construction loans
|
89,128 | 898 | 4.00 | 87,522 | 964 | 4.37 | ||||||||||||||||||
|
Commercial ADC loans
|
145,835 | 1,688 | 4.59 | 154,863 | 1,768 | 4.53 | ||||||||||||||||||
|
Commercial investor real estate loans
|
350,925 | 4,908 | 5.49 | 335,279 | 5,094 | 6.03 | ||||||||||||||||||
|
Commercial owner occupied real estate loans
|
515,185 | 7,760 | 6.01 | 512,370 | 7,784 | 6.03 | ||||||||||||||||||
|
Commercial business loans
|
225,041 | 2,844 | 5.01 | 253,058 | 3,397 | 5.33 | ||||||||||||||||||
|
Leasing
|
9,269 | 157 | 6.79 | 19,295 | 340 | 7.06 | ||||||||||||||||||
|
Consumer loans
|
360,875 | 3,303 | 3.63 | 393,491 | 3,804 | 3.86 | ||||||||||||||||||
|
Total loans and leases (2)
|
2,149,903 | 26,933 | 4.98 | 2,222,315 | 29,232 | 5.23 | ||||||||||||||||||
|
Taxable securities
|
916,982 | 6,044 | 2.64 | 906,231 | 6,463 | 2.91 | ||||||||||||||||||
|
Tax-exempt securities (4)
|
251,730 | 3,424 | 5.44 | 151,944 | 2,931 | 7.03 | ||||||||||||||||||
|
Interest-bearing deposits with banks
|
35,992 | 23 | 0.25 | 78,355 | 61 | 0.31 | ||||||||||||||||||
|
Federal funds sold
|
1,330 | - | 0.13 | 1,913 | 1 | 0.18 | ||||||||||||||||||
|
Total interest-earning assets
|
3,355,937 | 36,424 | 4.32 | 3,360,758 | 38,688 | 4.57 | ||||||||||||||||||
|
Less: allowance for loan and lease losses
|
(55,980 | ) | (71,059 | ) | ||||||||||||||||||||
|
Cash and due from banks
|
47,421 | 44,806 | ||||||||||||||||||||||
|
Premises and equipment, net
|
49,037 | 48,518 | ||||||||||||||||||||||
|
Other assets
|
213,804 | 237,858 | ||||||||||||||||||||||
|
Total assets
|
$ | 3,610,219 | $ | 3,620,881 | ||||||||||||||||||||
|
Liabilities and Stockholders' Equity
|
||||||||||||||||||||||||
|
Interest-bearing demand deposits
|
$ | 346,941 | 102 | 0.12 | % | $ | 299,110 | 82 | 0.11 | % | ||||||||||||||
|
Regular savings deposits
|
187,060 | 47 | 0.10 | 166,989 | 41 | 0.10 | ||||||||||||||||||
|
Money market savings deposits
|
865,492 | 909 | 0.42 | 886,296 | 1,125 | 0.50 | ||||||||||||||||||
|
Time deposits
|
610,044 | 1,715 | 1.12 | 685,960 | 2,635 | 1.52 | ||||||||||||||||||
|
Total interest-bearing deposits
|
2,009,537 | 2,773 | 0.55 | 2,038,355 | 3,883 | 0.76 | ||||||||||||||||||
|
Other borrowings
|
74,657 | 49 | 0.26 | 88,308 | 61 | 0.27 | ||||||||||||||||||
|
Advances from FHLB
|
405,534 | 3,628 | 3.55 | 409,337 | 3,676 | 3.56 | ||||||||||||||||||
|
Subordinated debentures
|
35,000 | 224 | 2.55 | 35,000 | 248 | 2.84 | ||||||||||||||||||
|
Total interest-bearing liabilities
|
2,524,728 | 6,674 | 1.05 | 2,571,000 | 7,868 | 1.21 | ||||||||||||||||||
|
Noninterest-bearing demand deposits
|
631,192 | 568,835 | ||||||||||||||||||||||
|
Other liabilities
|
25,788 | 25,945 | ||||||||||||||||||||||
|
Stockholders' equity
|
428,511 | 455,101 | ||||||||||||||||||||||
|
Total liabilities and stockholders' equity
|
$ | 3,610,219 | $ | 3,620,881 | ||||||||||||||||||||
|
Net interest income and spread
|
$ | 29,750 | 3.27 | % | $ | 30,820 | 3.36 | % | ||||||||||||||||
|
Less: tax-equivalent adjustment
|
1,420 | 1,321 | ||||||||||||||||||||||
|
Net interest income
|
$ | 28,330 | $ | 29,499 | ||||||||||||||||||||
|
Interest income/earning assets
|
4.32 | % | 4.57 | % | ||||||||||||||||||||
|
Interest expense/earning assets
|
0.79 | 0.93 | ||||||||||||||||||||||
|
Net interest margin
|
3.53 | % | 3.64 | % | ||||||||||||||||||||
|
(1)
|
Tax-equivalent income has been adjusted using the combined marginal federal and state rate of 39.88% for 2011 and 2010. The annualized taxable-equivalent adjustments utilized in the above table to compute yields aggregated to $1.4 million and $1.3 million in 2011 and 2010, respectively.
|
|
(2)
|
Non-accrual loans are included in the average balances.
|
|
(3)
|
Includes residential mortgage loans held for sale. Home equity loans and lines are classified as consumer loans.
|
|
(4)
|
Includes only investments that are exempt from federal taxes.
|
Sandy Spring Bancorp, Inc. and Subsidiaries
CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES - UNAUDITED
|
Nine Months Ended September 30,
|
||||||||||||||||||||||||
|
2011
|
2010
|
|||||||||||||||||||||||
|
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 (3)
|
$ | 455,909 | $ | 16,747 | 4.89 | % | $ | 465,393 | $ | 18,989 | 5.44 | % | ||||||||||||
|
Residential construction loans
|
86,399 | 2,448 | 3.79 | 87,616 | 3,044 | 4.65 | ||||||||||||||||||
|
Commercial ADC loans
|
148,215 | 4,813 | 4.34 | 157,253 | 4,587 | 3.90 | ||||||||||||||||||
|
Commercial investor real estate loans
|
347,926 | 15,236 | 5.94 | 337,127 | 15,241 | 6.04 | ||||||||||||||||||
|
Commercial owner occupied real estate loans
|
508,478 | 22,686 | 6.05 | 515,119 | 23,288 | 6.04 | ||||||||||||||||||
|
Commercial business loans
|
229,168 | 8,493 | 4.95 | 272,435 | 10,249 | 5.03 | ||||||||||||||||||
|
Leasing
|
11,460 | 576 | 6.70 | 22,071 | 1,185 | 7.16 | ||||||||||||||||||
|
Consumer loans
|
363,388 | 9,986 | 3.70 | 395,835 | 11,480 | 3.90 | ||||||||||||||||||
|
Total loans and leases (2)
|
2,150,943 | 80,985 | 5.03 | 2,252,849 | 88,063 | 5.22 | ||||||||||||||||||
|
Taxable securities
|
879,230 | 17,810 | 2.70 | 855,243 | 19,227 | 3.02 | ||||||||||||||||||
|
Tax-exempt securities (4)
|
236,113 | 10,058 | 5.68 | 159,281 | 8,269 | 6.92 | ||||||||||||||||||
|
Interest-bearing deposits with banks
|
32,257 | 62 | 0.25 | 83,351 | 158 | 0.25 | ||||||||||||||||||
|
Federal funds sold
|
1,408 | 1 | 0.14 | 1,814 | 2 | 0.17 | ||||||||||||||||||
|
Total interest-earning assets
|
3,299,951 | 108,916 | 4.41 | 3,352,538 | 115,719 | 4.61 | ||||||||||||||||||
|
Less: allowance for loan and lease losses
|
(58,672 | ) | (70,145 | ) | ||||||||||||||||||||
|
Cash and due from banks
|
45,587 | 44,633 | ||||||||||||||||||||||
|
Premises and equipment, net
|
49,130 | 48,876 | ||||||||||||||||||||||
|
Other assets
|
223,506 | 243,100 | ||||||||||||||||||||||
|
Total assets
|
$ | 3,559,502 | $ | 3,619,002 | ||||||||||||||||||||
|
Liabilities and Stockholders' Equity
|
||||||||||||||||||||||||
|
Interest-bearing demand deposits
|
$ | 336,020 | 278 | 0.11 | % | $ | 288,637 | 256 | 0.12 | % | ||||||||||||||
|
Regular savings deposits
|
182,424 | 142 | 0.10 | 163,687 | 128 | 0.10 | ||||||||||||||||||
|
Money market savings deposits
|
855,458 | 2,865 | 0.45 | 892,838 | 4,006 | 0.60 | ||||||||||||||||||
|
Time deposits
|
618,250 | 5,388 | 1.17 | 727,980 | 9,351 | 1.72 | ||||||||||||||||||
|
Total interest-bearing deposits
|
1,992,152 | 8,673 | 0.58 | 2,073,142 | 13,741 | 0.89 | ||||||||||||||||||
|
Other borrowings
|
77,135 | 155 | 0.27 | 87,881 | 198 | 0.30 | ||||||||||||||||||
|
Advances from FHLB
|
405,621 | 10,769 | 3.55 | 410,523 | 10,949 | 3.57 | ||||||||||||||||||
|
Subordinated debentures
|
35,000 | 671 | 2.55 | 35,000 | 693 | 2.64 | ||||||||||||||||||
|
Total interest-bearing liabilities
|
2,509,908 | 20,268 | 1.08 | 2,606,546 | 25,581 | 1.31 | ||||||||||||||||||
|
Noninterest-bearing demand deposits
|
607,087 | 546,961 | ||||||||||||||||||||||
|
Other liabilities
|
25,714 | 26,006 | ||||||||||||||||||||||
|
Stockholders' equity
|
416,793 | 439,489 | ||||||||||||||||||||||
|
Total liabilities and stockholders' equity
|
$ | 3,559,502 | $ | 3,619,002 | ||||||||||||||||||||
|
Net interest income and spread
|
$ | 88,648 | 3.33 | % | $ | 90,138 | 3.30 | % | ||||||||||||||||
|
Less: tax-equivalent adjustment
|
4,154 | 3,484 | ||||||||||||||||||||||
|
Net interest income
|
$ | 84,494 | $ | 86,654 | ||||||||||||||||||||
|
Interest income/earning assets
|
4.41 | % | 4.61 | % | ||||||||||||||||||||
|
Interest expense/earning assets
|
0.82 | 1.02 | ||||||||||||||||||||||
|
Net interest margin
|
3.59 | % | 3.59 | % | ||||||||||||||||||||
|
(1)
|
Tax-equivalent income has been adjusted using the combined marginal federal and state rate of 39.88% for 2011 and 2010. The annualized taxable-equivalent adjustments utilized in the above table to compute yields aggregated to $4.2 million and $3.5 million in 2011 and 2010, respectively.
|
|
(2)
|
Non-accrual loans are included in the average balances.
|
|
(3)
|
Includes residential mortgage loans held for sale. Home equity loans and lines are classified as consumer loans.
|
|
(4)
|
Includes only investments that are exempt from federal taxes.
|