Exhibit 99.1

 

News release

 

  

FOR IMMEDIATE RELEASE

 

SANDY SPRING BANCORP REPORTS NET INCOME OF $11.2 MILLION FOR THE FIRST QUARTER

 

OLNEY, MARYLAND, April 16, 2015 — Sandy Spring Bancorp, Inc., (Nasdaq-SASR) the parent company of Sandy Spring Bank, today reported net income for the first quarter of 2015 of $11.2 million ($0.45 per diluted share) compared to net income of $10.9 million ($0.43 per diluted share) for the first quarter of 2014 and net income of $9.1 million ($0.36 per diluted share) for the fourth quarter of 2014.

 

“We are off to a solid start to the year, as higher net interest income from a growing loan portfolio, together with growth in income from wealth management and mortgage banking drove first quarter operating results,” said Daniel J. Schrider, President and Chief Executive Officer.

 

“Our consistent performance has enabled us to deliver increased shareholder value through increases to our dividends and timely repurchases of shares during the last two quarters,” said Schrider.

 

First Quarter Highlights:

 

·

Total loans increased 12% compared to the first quarter of 2014 and 1% compared to the fourth quarter of 2014. Growth over the prior year was 10% or better in each of the three major portfolio segments.

 

·

Combined noninterest-bearing and interest-bearing transaction account balances increased 13% to $1.5 billion at March 31, 2015 as compared to $1.4 billion at March 31, 2014.

 

·

The provision for loan and lease losses for the first quarter of 2015 was a charge of $0.6 million compared to a credit of $1.0 million for the first quarter of 2014 and a charge of $0.9 million for the fourth quarter of 2014.

 

·

The net interest margin was 3.44% for the first quarter of 2015, compared to 3.47% for the first quarter of 2014 and 3.44% for the fourth quarter of 2014.

 

·

Non-interest income increased 17% for the quarter compared to the prior year quarter primarily due to increases in income from wealth management and mortgage banking.

 

·

During the first quarter of 2015, the Company repurchased 351,369 shares at an average price of $25.72 per share as part of its existing share repurchase program. Also, on January 29 the Board increased the Company’s quarterly dividend to $0.22 per share, up from $0.20 per share in the fourth quarter of 2014.

 

 

Review of Balance Sheet and Credit Quality

 

Total assets grew 6% to $4.4 billion at March 31, 2015 compared to $4.2 billion at March 31, 2014. This growth was driven by a 12% increase in the loan portfolio as total loans and leases ended the period at $3.2 billion.

 

At March 31, 2015, combined noninterest-bearing and interest-bearing checking account balances, an important performance driver of multiple-product banking relationships with clients, increased 13% compared to balances at March 31, 2014. Total deposits and certain other short-term borrowings that comprise the funding sources derived from customers, increased 6% compared to March 31, 2014.

 

Tangible common equity totaled $435 million at March 31, 2015 compared to $424 million at March 31, 2014. The ratio of tangible common equity to tangible assets decreased to 10.08% at March 31, 2015 from 10.38% at March 31, 2014 due primarily to the growth in assets. Dividends per common share were $0.22 per share for the quarter compared to $0.18 per common share for the first quarter of 2014, a 22% increase. At March 31, 2015, the Company had a total risk-based capital ratio of 15.12%, a common equity tier 1 risk-based capital ratio of 14.01%, a tier 1 risk-based capital ratio of 14.01% and a tier 1 leverage ratio of 11.00%.

 

Non-performing loans totaled $36.0 million at March 31, 2015 compared to $38.7 million at March 31, 2014 and $34.0 million at December 31, 2014. The level of non-performing loans to total loans decreased to 1.14% at March 31, 2015 compared to 1.37% at March 31, 2014 due to growth in the overall loan portfolio. The increase in non-performing loans at March 31, 2015 compared to December 31, 2014 was driven primarily by one commercial investor real estate loan that was moved to non-performing status during the quarter. This was somewhat offset by recoveries and loan payoffs.

 

Loan charge-offs, net of recoveries, totaled $0.9 million for the first quarter of 2015 compared to net loan recoveries of $0.2 million for the first quarter of 2014 and net loan charge-offs of $0.6 million for the fourth quarter of 2014. The allowance for loan and lease losses represented 1.18% of outstanding loans and leases and 104% of non-performing loans at December 31, 2015 compared to 1.34% of outstanding loans and leases and 98% of non-performing loans at March 31, 2014. Non-performing loans includes accruing loans 90 days or more past due and restructured loans.

 

Income Statement Review

 

Net interest income for the first quarter of 2015 increased 6% compared to the first quarter of 2014. The net interest margin was 3.44% for the first quarter of 2015 compared to 3.47% for the first quarter of 2014.

 

The provision for loan and lease losses was a charge of $0.6 million for the first quarter of 2015 compared to a credit of $1.0 million for the first quarter of 2014 and a charge of $0.9 million for the fourth quarter of 2014. The current quarter’s charge reflects the growth in the loan portfolio over the prior year quarter together with the increase in non-performing loans and loan charge-offs during the first quarter.

 

  

Non-interest income increased 17% to $13.2 million for the first quarter of 2015 compared to $11.2 million for the first quarter of 2014. The increase in non-interest income for the quarter compared to the prior year quarter was due primarily to increases in income from wealth management due to growth in assets under management and mortgage banking due primarily to higher mortgage origination volumes.

 

Non-interest expenses increased 6% to $29.2 million for the first quarter of 2015 compared to $27.5 million in the first quarter of 2014. The current quarter included increases in salaries and benefits and other non-interest expenses that were somewhat offset by a decline in intangibles amortization. The non-GAAP efficiency ratio was 60.53% for the first quarter of 2015 compared to 61.60% for the first quarter of 2014.

 

Conference Call

 

The Company’s management will host a conference call to discuss its first quarter results today at 2:00 P.M. (ET). A live Web cast of the conference call is available through the Investor Relations’ section of the Sandy Spring Web site at www.sandyspringbank.com. Participants may call 1-866-235-9910. A password is not necessary. Visitors to the Web site are advised to log on 10 minutes ahead of the scheduled start of the call. An internet-based replay will be available at the Web site until 9:00 am (ET) April 30, 2015. A replay of the teleconference will be available through the same time period by calling 1-877-344-7529 under conference call number 10063098.

 

About Sandy Spring Bancorp, Inc.

 

With $4.4 billion in assets, Sandy Spring Bancorp, Inc. is the holding company for Sandy Spring Bank and its principal subsidiaries, Sandy Spring Insurance Corporation and West Financial Services, Inc. Sandy Spring Bank traces its origin to 1868, making it among the oldest banking institutions in the region. Sandy Spring is a community banking organization that focuses its lending and other services on businesses and consumers in the local market area. Independent and community-oriented, Sandy Spring offers a broad range of commercial banking, retail banking and trust services through 44 community offices in Anne Arundel, Carroll, Frederick, Howard, Montgomery, and Prince George’s counties in Maryland, and Arlington, Fairfax and Loudoun counties in Virginia. Through its subsidiaries, Sandy Spring Bank also offers a comprehensive menu of insurance and investment management services. Visit www.sandyspringbank.com for more information about Sandy Spring Bank.

 

For additional information or questions, please contact:

Daniel J. Schrider, President & Chief Executive Officer, or

Philip J. Mantua, E.V.P. & Chief Financial Officer

Sandy Spring Bancorp

17801 Georgia Avenue

Olney, Maryland 20832

1-800-399-5919

Email:

DSchrider@sandyspringbank.com

PMantua@sandyspringbank.com

Web site: www.sandyspringbank.com

 

 

Forward-Looking Statements

 

Sandy Spring Bancorp makes forward-looking statements in this news release and in the conference call regarding this news release. These forward-looking statements may include: statements of goals, intentions, earnings expectations, and other expectations; estimates of risks and of future costs and benefits; assessments of probable loan and lease losses; assessments of market risk; and statements of the ability to achieve financial and other goals.

 

Forward-looking statements are typically identified by words such as “believe,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,” “forecast,” “project” and other similar words and expressions. Forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made. Sandy Spring Bancorp does not assume any duty and does not undertake to update its forward-looking statements. Because forward-looking statements are subject to assumptions and uncertainties, actual results or future events could differ, possibly materially, from those that Sandy Spring Bancorp anticipated in its forward-looking statements and future results could differ materially from historical performance.

 

Sandy Spring Bancorp’s forward-looking statements are subject to the following principal risks and uncertainties: general economic conditions and trends, either nationally or locally; conditions in the securities markets; changes in interest rates; changes in deposit flows, and in the demand for deposit, loan, and investment products and other financial services; changes in real estate values; changes in the quality or composition of the Company’s loan or investment portfolios; changes in competitive pressures among financial institutions or from non-financial institutions; the Company’s ability to retain key members of management; changes in legislation, regulations, and policies; and a variety of other matters which, by their nature, are subject to significant uncertainties. Sandy Spring Bancorp provides greater detail regarding some of these factors in its Form 10-K for the year ended December 31, 2014, 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
		March 31,								%
(Dollars in thousands, except per share data)		2015				2014				Change
Results of Operations:
Net interest income		$	33,373			$	31,592				6	%
Provision (credit) for loan and lease losses			597				(982	)			(161	)
Non-interest income			13,159				11,249				17
Non-interest expenses			29,244				27,549				6
Income before income taxes			16,691				16,274				3
Net income			11,225				10,928				3
Pre-tax pre-provision income		$	17,488			$	15,292				14
Return on average assets			1.04	%			1.08	%
Return on average common equity			8.73	%			8.80	%
Net interest margin			3.44	%			3.47	%
Efficiency ratio - GAAP basis   (1)			62.85	%			64.31	%
Efficiency ratio - Non-GAAP basis   (1)			60.53	%			61.60	%
Per share data:
Basic net income		$	0.45			$	0.44				2	%
Diluted net income		$	0.45			$	0.43				5
Average fully diluted shares			25,048,576				25,124,206				-
Dividends declared per share		$	0.22			$	0.18				22
Book value per share			21.10				20.38				4
Tangible book value per share			17.59				16.93				4
Outstanding shares			24,733,868				25,043,482				(1	)
Financial Condition at period-end:
Investment securities		$	912,565			$	997,584				(9	)%
Loans and leases			3,164,706				2,832,813				12
Interest-earning assets			4,125,549				3,891,223				6
Assets			4,401,380				4,168,998				6
Deposits			3,109,892				2,959,195				5
Interest-bearing liabilities			2,818,966				2,748,064				3
Stockholders' equity			521,768				510,386				2
Capital ratios:
Tier 1 leverage   (4)			11.00	%			11.43	%
Tier 1 capital to risk-weighted assets   (4)			14.01	%			14.64	%
Total regulatory capital to risk-weighted assets   (4)			15.12	%			15.85	%
Common equity tier 1 capital to risk-weighted assets   (4)			14.01	%			n.a.
Tangible common equity to tangible assets   (2)			10.08	%			10.38	%
Average equity to average assets			11.92	%			12.27	%
Credit quality ratios:
Allowance for loan and lease losses to loans and leases			1.18	%			1.34	%
Non-performing loans to total loans			1.14	%			1.37	%
Non-performing assets to total assets			0.89	%			0.97	%
Allowance for loan and lease losses to non-performing loans			104.05	%			98.27	%
Annualized net charge-offs to average loans and leases    (3)			0.12	%			(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 from non-interest expense; securities gains (losses) from non-interest income; OTTI; and the tax-equivalent adjustment to net interest income.  See the Reconciliation Table included with these Financial Highlights.

 

(2)

The tangible common equity to tangible assets ratio is a non-GAAP ratio that divides assets excluding intangible assets into stockholders' equity after deducting intangible assets and other comprehensive gains (losses).  See the Reconciliation Table included with these Financial Highlights.

 

(3)

Calculation utilizes average loans and leases, excluding residential mortgage loans held-for-sale.

 

(4)

Estimated ratio at March 31, 2015

 

  

Sandy Spring Bancorp, Inc. and Subsidiaries
RECONCILIATION TABLE - UNAUDITED
		Three Months Ended
		March 31,
(Dollars in thousands)		2015				2014
Pre-tax pre-provision income:
Net income		$	11,225			$	10,928
Plus non-GAAP adjustment:
Litigation expenses			200				-
Income taxes			5,466				5,346
Provision (credit) for loan and lease losses			597				(982	)
Pre-tax pre-provision income		$	17,488			$	15,292
Efficiency ratio - GAAP basis:
Non-interest expenses		$	29,244			$	27,549
Net interest income plus non-interest income		$	46,532			$	42,841
Efficiency ratio - GAAP basis			62.85	%			64.31	%
Efficiency ratio - Non-GAAP basis:
Non-interest expenses		$	29,244			$	27,549
Less non-GAAP adjustment:
Amortization of intangible assets			107				370
Litigation expenses			200				-
Non-interest expenses -  as adjusted		$	28,937			$	27,179
Net interest income plus non-interest income		$	46,532			$	42,841
Plus non-GAAP adjustment:
Tax-equivalent income			1,271				1,282
Less non-GAAP adjustments:
Securities gains (losses)			-				-
Net interest income plus non-interest income - as adjusted		$	47,803			$	44,123
Efficiency ratio - Non-GAAP basis			60.53	%			61.60	%
Tangible common equity ratio:
Total stockholders' equity		$	521,768			$	510,386
Accumulated other comprehensive income			(2,146	)			(1,350	)
Goodwill			(84,171	)			(84,171	)
Other intangible assets, net			(403	)			(960	)
Tangible common equity		$	435,048			$	423,905
Total assets		$	4,401,380			$	4,168,998
Goodwill			(84,171	)			(84,171	)
Other intangible assets, net			(403	)			(960	)
Tangible assets		$	4,316,806			$	4,083,867
Tangible common equity ratio			10.08	%			10.38	%
Outstanding common shares			24,733,868				25,043,482
Tangible book value per common share		$	17.59			$	16.93

 

 

Sandy Spring Bancorp, Inc. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF CONDITION  - UNAUDITED
		March 31,				December 31,				March 31,
(Dollars in thousands)		2015				2014				2014
Assets
Cash and due from banks		$	46,771			$	52,804			$	58,448
Federal funds sold			473				473				474
Interest-bearing deposits with banks			33,906				42,940				57,273
Cash and cash equivalents			81,150				96,217				116,195
Residential mortgage loans held for sale (at fair value)			13,899				10,512				3,079
Investments available-for-sale (at fair value)			657,709				672,209				736,270
Investments held-to-maturity -- fair value of $221,687, $222,260 and $220,693 at March 31, 2015, December 31, 2014 and March 31, 2014, respectively			217,557				219,973				223,747
Other equity securities			37,299				41,437				37,567
Total loans and leases			3,164,706				3,127,392				2,832,813
Less: allowance for loan and lease losses			(37,475	)			(37,802	)			(38,026	)
Net loans and leases			3,127,231				3,089,590				2,794,787
Premises and equipment, net			51,299				49,402				45,644
Other real estate owned			3,227				3,195				1,619
Accrued interest receivable			12,505				12,634				12,288
Goodwill			84,171				84,171				84,171
Other intangible assets, net			403				510				960
Other assets			114,930				117,282				112,671
Total assets		$	4,401,380			$	4,397,132			$	4,168,998
Liabilities
Noninterest-bearing deposits		$	1,017,566			$	993,737			$	882,169
Interest-bearing deposits			2,092,326				2,072,772				2,077,026
Total deposits			3,109,892				3,066,509				2,959,195
Securities sold under retail repurchase agreements and federal funds purchased			101,640				74,432				67,038
Advances from FHLB			590,000				655,000				569,000
Subordinated debentures			35,000				35,000				35,000
Accrued interest payable and other liabilities			43,080				44,440				28,379
Total liabilities			3,879,612				3,875,381				3,658,612
Stockholders' Equity
Common stock -- par value $1.00; shares authorized 50,000,000; shares issued and outstanding 24,733,868, 25,044,877 and 25,043,482 at March 31, 2015, December 31, 2014 and March 31, 2014, respectively			24,734				25,045				25,043
Additional paid in capital			186,342				194,647				193,708
Retained earnings			308,546				302,882				290,285
Accumulated other comprehensive income (loss)			2,146				(823	)			1,350
Total stockholders' equity			521,768				521,751				510,386
Total liabilities and stockholders' equity		$	4,401,380			$	4,397,132			$	4,168,998

 

 

Sandy Spring Bancorp, Inc. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
		Three Months Ended
		March 31,
(Dollars in thousands, except per share data)		2015				2014
Interest Income:
Interest and fees on loans and leases		$	32,139			$	29,734
Interest on loans held for sale			76				59
Interest on deposits with banks			22				20
Interest and dividends on investment securities:
Taxable			3,577				4,116
Exempt from federal income taxes			2,258				2,321
Total interest income			38,072				36,250
Interest Expense:
Interest on deposits			1,194				1,184
Interest on retail repurchase agreements and federal funds purchased			50				38
Interest on advances from FHLB			3,236				3,218
Interest on subordinated debt			219				218
Total interest expense			4,699				4,658
Net interest income			33,373				31,592
Provision (credit) for loan and lease losses			597				(982	)
Net interest income after provision (credit) for loan and lease losses			32,776				32,574
Non-interest Income:
Investment securities gains (losses)			-				-
Service charges on deposit accounts			1,882				1,972
Mortgage banking activities			1,178				316
Wealth management income			4,916				4,466
Insurance agency commissions			1,618				1,640
Income from bank owned life insurance			713				598
Bank card fees			1,057				978
Other income			1,795				1,279
Total non-interest income			13,159				11,249
Non-interest Expenses:
Salaries and employee benefits			17,299				16,355
Occupancy expense of premises			3,489				3,472
Equipment expenses			1,373				1,256
Marketing			531				542
Outside data services			1,261				1,216
FDIC insurance			631				520
Amortization of intangible assets			107				370
Litigation expenses			200				-
Other expenses			4,353				3,818
Total non-interest expenses			29,244				27,549
Income before income taxes			16,691				16,274
Income tax expense			5,466				5,346
Net income		$	11,225			$	10,928
Net Income Per Share Amounts:
Basic net income per share		$	0.45			$	0.44
Diluted net income per share		$	0.45			$	0.43
Dividends declared per share		$	0.22			$	0.18

 

 

Sandy Spring Bancorp, Inc. and Subsidiaries
HISTORICAL TRENDS - QUARTERLY FINANCIAL DATA - UNAUDITED
		2015				2014
(Dollars in thousands, except per share data)		Q1				Q4				Q3				Q2				Q1
Profitability for the Quarter:
Tax-equivalent interest income		$	39,343			$	39,258			$	38,446			$	38,322			$	37,532
Interest expense			4,699				4,748				4,730				4,682				4,658
Tax-equivalent net interest income			34,644				34,510				33,716				33,640				32,874
Tax-equivalent adjustment			1,271				1,283				1,296				1,331				1,282
Provision for loan and lease losses			597				853				(192	)			158				(982	)
Non-interest income			13,159				11,338				12,590				11,694				11,249
Non-interest expenses			29,244				30,478				28,632				34,141				27,549
Income before income taxes			16,691				13,234				16,570				9,704				16,274
Income tax expense			5,466				4,086				5,428				2,722				5,346
Net income		$	11,225			$	9,148			$	11,142			$	6,982			$	10,928
Financial Performance:
Pre-tax pre-provision income		$	17,488			$	14,242			$	16,614			$	15,990			$	15,292
Return on average assets			1.04	%			0.85	%			1.05	%			0.67	%			1.08	%
Return on average common equity			8.73	%			6.93	%			8.54	%			5.47	%			8.80	%
Net interest margin			3.44	%			3.44	%			3.42	%			3.48	%			3.47	%
Efficiency ratio - GAAP basis (1)			62.85	%			68.39	%			63.61	%			77.59	%			64.31	%
Efficiency ratio - Non-GAAP basis (1)			60.53	%			65.89	%			61.09	%			61.30	%			61.60	%
Per Share Data:
Basic net income per share		$	0.45			$	0.37			$	0.44			$	0.28			$	0.44
Diluted net income per share		$	0.45			$	0.36			$	0.44			$	0.28			$	0.43
Average fully diluted shares			25,048,576				25,151,831				25,151,582				25,127,036				25,124,206
Dividends declared per common share		$	0.22			$	0.20			$	0.20			$	0.18			$	0.18
Non-interest Income:
Securities gains (losses)		$	-			$	(3	)		$	8			$	-			$	-
Service charges on deposit accounts			1,882				2,135				2,226				2,089				1,972
Mortgage banking activities			1,178				512				596				570				316
Wealth management income			4,916				4,905				4,974				4,741				4,466
Insurance agency commissions			1,618				985				1,410				961				1,640
Income from bank owned life insurance			713				627				611				608				598
Bank card fees			1,057				1,144				1,148				1,169				978
Other income			1,795				1,033				1,617				1,556				1,279
Total Non-interest Income		$	13,159			$	11,338			$	12,590			$	11,694			$	11,249
Non-interest Expense:
Salaries and employee benefits		$	17,299			$	16,793			$	16,765			$	16,474			$	16,355
Occupancy expense of premises			3,489				3,914				3,032				3,274				3,472
Equipment expenses			1,373				1,333				1,337				1,262				1,256
Marketing			531				838				744				802				542
Outside data services			1,261				1,284				1,231				1,216				1,216
FDIC insurance			631				615				594				573				520
Amortization of intangible assets			107				112				115				224				370
Litigation expenses			200				155				236				6,128				-
Professional fees			1,209				1,246				1,092				1,292				914
Other real estate owned expenses			10				2				40				9				-
Other expenses			3,134				4,186				3,446				2,887				2,904
Total Non-interest Expense		$	29,244			$	30,478			$	28,632			$	34,141			$	27,549

 

(1)

The efficiency ratio - GAAP basis is non-interest expenses divided by net interest income plus non-interest income from the Condensed Consolidated Statements of Income. The traditional, efficiency ratio - non-GAAP basis excludes intangible asset amortization from non-interest expense; excludes securities gains; OTTI losses from non-interest income; and adds the tax-equivalent adjustment to net interest income.  See the Reconciliation Table included with these Financial Highlights.

 

 

Sandy Spring Bancorp, Inc. and Subsidiaries
HISTORICAL TRENDS - QUARTERLY FINANCIAL DATA - UNAUDITED
		2015				2014
(Dollars in thousands)		Q1				Q4				Q3				Q2				Q1
Balance Sheets at Quarter End:
Residential mortgage loans		$	728,858			$	717,886			$	698,925			$	668,536			$	640,939
Residential construction loans			130,321				136,741				141,883				149,321				143,109
Commercial ADC loans			203,731				205,124				194,666				178,972				163,343
Commercial investor real estate loans			668,931				640,193				575,984				577,813				573,634
Commercial owner occupied real estate loans			618,846				611,061				584,964				581,795				582,472
Commercial business loans			385,452				390,781				368,611				357,472				348,180
Leasing			36				54				156				260				439
Consumer loans			428,531				425,552				410,723				396,775				380,697
Total loans and leases			3,164,706				3,127,392				2,975,912				2,910,944				2,832,813
Allowance for loan and lease losses			(37,475	)			(37,802	)			(37,574	)			(37,959	)			(38,026	)
Investment securities			912,565				933,619				950,869				980,530				997,584
Interest-earning assets			4,125,549				4,114,936				3,976,731				3,945,643				3,891,223
Total assets			4,401,380				4,397,132				4,248,731				4,234,342				4,168,998
Noninterest-bearing demand deposits			1,017,566				993,737				986,549				984,700				882,169
Total deposits			3,109,892				3,066,509				3,028,788				3,038,670				2,959,195
Customer repurchase agreements			101,640				74,432				71,384				72,917				67,038
Total interest-bearing liabilities			2,818,966				2,837,204				2,706,623				2,698,887				2,748,064
Total stockholders' equity			521,768				521,751				522,404				517,269				510,386
Quarterly Average Balance Sheets:
Residential mortgage loans		$	731,301			$	717,671			$	689,531			$	659,172			$	633,160
Residential construction loans			132,456				141,890				147,750				145,968				134,261
Commercial ADC loans			206,105				201,020				180,293				168,063				162,544
Commercial investor real estate loans			645,163				607,050				577,851				575,283				557,168
Commercial owner occupied real estate loans			611,722				594,634				585,014				579,953				584,155
Commercial business loans			383,111				367,872				367,203				348,597				349,734
Leasing			44				114				206				352				567
Consumer loans			425,434				417,910				404,062				390,076				377,822
Total loans and leases			3,135,336				3,048,161				2,951,910				2,867,464				2,799,411
Investment securities			925,683				942,782				965,206				991,135				1,012,701
Interest-earning assets			4,097,648				4,022,051				3,954,858				3,893,843				3,845,513
Total assets			4,372,988				4,292,237				4,220,084				4,157,559				4,105,225
Noninterest-bearing demand deposits			986,688				1,000,285				956,830				899,287				825,968
Total deposits			3,056,186				3,063,591				3,036,686				2,965,329				2,876,641
Customer repurchase agreements			90,020				78,746				73,046				68,880				62,864
Total interest-bearing liabilities			2,817,575				2,731,791				2,711,206				2,716,537				2,749,459
Total stockholders' equity			521,346				524,063				517,534				511,738				503,851
Financial Measures:
Average equity to average assets			11.92	%			12.21	%			12.26	%			12.31	%			12.27	%
Investment securities to earning assets			22.12	%			22.69	%			23.91	%			24.85	%			25.64	%
Loans to earning assets			76.71	%			76.00	%			74.83	%			73.78	%			72.80	%
Loans to assets			71.90	%			71.12	%			70.04	%			68.75	%			67.95	%
Loans to deposits			101.76	%			101.99	%			98.25	%			95.80	%			95.73	%
Capital Measures:
Tier 1 leverage  (1)			11.00	%			11.26	%			11.36	%			11.37	%			11.43	%
Tier 1 capital to risk-weighted assets  (1)			14.01	%			13.95	%			14.52	%			14.48	%			14.64	%
Total regulatory capital to risk-weighted assets  (1)			15.12	%			15.06	%			15.68	%			15.66	%			15.85	%
Common equity tier 1 capital to risk-weighted assets   (1)			14.01	%			n.a.				n.a.				n.a.				n.a.
Book value per share		$	21.10			$	20.83			$	20.83			$	20.63			$	20.38
Outstanding shares			24,733,868				25,044,877				25,076,794				25,069,700				25,043,482

 

(1)

Estimated ratio at March 31, 2015

 

 

Sandy Spring Bancorp, Inc. and Subsidiaries
LOAN PORTFOLIO QUALITY DETAIL - UNAUDITED
		2015				2014
(Dollars in thousands)		March 31,				December 31,				September 30,				June 30,				March 31,
Non-Performing Assets:
Loans and leases 90 days past due:
Commercial business		$	-			$	-			$	-			$	1			$	-
Commercial real estate:
Commercial AD&C			-				-				-				-				-
Commercial investor real estate			-				-				-				-				-
Commercial owner occupied real estate			-				-				649				-				-
Leasing			-				-				-				-				-
Consumer			-				-				6				3				-
Residential real estate:
Residential mortgage			-				-				-				-				-
Residential construction			-				-				-				-				-
Total loans and leases 90 days past due			-				-				655				4				-
Non-accrual loans and leases:
Commercial business			4,166				3,184				4,151				4,309				3,272
Commercial real estate:
Commercial AD&C			1,363				2,464				3,792				3,739				4,133
Commercial investor real estate			10,083				8,156				8,210				6,731				7,284
Commercial owner occupied real estate			8,974				8,941				10,742				10,868				7,150
Leasing			-				-				-				-				-
Consumer			1,962				1,668				1,830				2,058				2,115
Residential real estate:
Residential mortgage			3,235				3,012				4,417				4,501				5,025
Residential construction			788				1,105				2,497				2,143				2,304
Total non-accrual loans and leases			30,571				28,530				35,639				34,349				31,283
Total restructured loans - accruing			5,446				5,497				7,382				7,364				7,411
Total non-performing loans and leases			36,017				34,027				43,676				41,717				38,694
Other assets and real estate owned (OREO)			3,227				3,195				1,762				1,967				1,619
Total non-performing assets		$	39,244			$	37,222			$	45,438			$	43,684			$	40,313

 

 

		For the quarter ended,
		March 31,				December 31,				September 30,				June 30,				March 31,
(Dollars in thousands)		2015				2014				2014				2014				2014
Analysis of Non-accrual Loan and Lease Activity:
Balance at beginning of period		$	28,530			$	35,639			$	34,349			$	31,283			$	30,574
Non-accrual balances transferred to OREO			(32	)			(1,475	)			(300	)			(390	)			(281	)
Non-accrual balances charged-off			(1,077	)			(1,033	)			(216	)			(357	)			(513	)
Net payments or draws			(1,067	)			(4,139	)			(590	)			(1,580	)			(1,073	)
Loans placed on non-accrual			4,217				779				2,396				5,393				2,576
Non-accrual loans brought current			-				(1,241	)			-				-				-
Balance at end of period		$	30,571			$	28,530			$	35,639			$	34,349			$	31,283
Analysis of Allowance for Loan Losses:
Balance at beginning of period		$	37,802			$	37,574			$	37,959			$	38,026			$	38,766
Provision (credit) for loan and lease losses			597				853				(192	)			158				(982	)
Less loans charged-off, net of recoveries:
Commercial business			(89	)			50				(58	)			28				(768	)
Commercial real estate:
Commercial AD&C			706				529				-				-				-
Commercial investor real estate			(5	)			(5	)			(2	)			(23	)			(5	)
Commercial owner occupied real estate			212				(6	)			-				265				-
Leasing			-				-				-				-				-
Consumer			43				83				244				11				331
Residential real estate:
Residential mortgage			65				(17	)			43				(27	)			203
Residential construction			(8	)			(9	)			(34	)			(29	)			(3	)
Net charge-offs			924				625				193				225				(242	)
Balance at end of period		$	37,475			$	37,802			$	37,574			$	37,959			$	38,026
Asset Quality Ratios:
Non-performing loans to total loans			1.14	%			1.09	%			1.47	%			1.43	%			1.37	%
Non-performing assets to total assets			0.89	%			0.85	%			1.07	%			1.03	%			0.97	%
Allowance for loan losses to loans			1.18	%			1.21	%			1.26	%			1.30	%			1.34	%
Allowance for loan losses to non-performing loans			104.05	%			111.09	%			86.03	%			90.99	%			98.27	%
Annualized net charge-offs to average loans			0.12	%			0.08	%			0.03	%			0.03	%			(0.04	)%

 

 

Sandy Spring Bancorp, Inc. and Subsidiaries
CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES - UNAUDITED
		Three Months Ended March 31,
		2015												2014
										Annualized												Annualized
		Average				(1)				Average				Average				(1)				Average
(Dollars in thousands and tax-equivalent)		Balances				Interest				Yield/Rate				Balances				Interest				Yield/Rate
Assets
Residential mortgage loans (2)		$	731,301			$	6,200				3.39	%		$	633,160			$	5,506				3.48	%
Residential construction loans			132,456				1,221				3.74				134,261				1,254				3.79
Commercial ADC loans			206,105				2,337				4.60				162,544				2,073				5.17
Commercial investor real estate loans			645,163				7,579				4.76				557,168				6,733				4.90
Commercial owner occupied real estate loans			611,722				7,165				4.99				584,155				7,067				5.08
Commercial business loans			383,111				4,212				4.38				349,734				4,037				4.64
Leasing			44				1				5.19				567				6				4.53
Consumer loans			425,434				3,500				3.36				377,822				3,117				3.37
Total loans and leases (3)			3,135,336				32,215				4.19				2,799,411				29,793				4.34
Taxable securities			629,266				3,936				2.54				710,246				4,452				2.51
Tax-exempt securities (4)			296,417				3,170				4.34				302,455				3,267				4.32
Interest-bearing deposits with banks			36,155				22				0.25				32,925				20				0.25
Federal funds sold			474				-				0.22				476				-				0.22
Total interest-earning assets			4,097,648				39,343				3.90				3,845,513				37,532				3.96
Less:  allowance for loan and lease losses			(37,444	)											(39,393	)
Cash and due from banks			46,430												45,553
Premises and equipment, net			50,658												45,879
Other assets			215,696												207,662
Total assets		$	4,372,988											$	4,105,214
Liabilities and Stockholders' Equity
Interest-bearing demand deposits		$	524,059				106				0.08	%		$	460,245				92				0.08	%
Regular savings deposits			270,198				34				0.05				249,185				48				0.08
Money market savings deposits			831,707				273				0.13				877,864				273				0.13
Time deposits			443,534				781				0.71				463,379				771				0.67
Total interest-bearing deposits			2,069,498				1,194				0.23				2,050,673				1,184				0.23
Other borrowings			90,188				50				0.22				62,864				38				0.24
Advances from FHLB			622,889				3,236				2.11				600,922				3,218				2.17
Subordinated debentures			35,000				219				2.50				35,000				218				2.49
Total interest-bearing liabilities			2,817,575				4,699				0.68				2,749,459				4,658				0.69
Noninterest-bearing demand deposits			986,688												825,968
Other liabilities			47,379												25,936
Stockholders' equity			521,346												503,851
Total liabilities and stockholders' equity		$	4,372,988											$	4,105,214
Net interest income and spread						$	34,644				3.22	%						$	32,874				3.27	%
Less: tax-equivalent adjustment							1,271												1,282
Net interest income						$	33,373											$	31,592
Interest income/earning assets											3.90	%											3.96	%
Interest expense/earning assets											0.46												0.49
Net interest margin											3.44	%											3.47	%

 

(1)

Tax-equivalent income has been adjusted using the combined marginal federal and state rate of 39.88% for 2015 and  2014. The annualized taxable-equivalent adjustments utilized in the above table to compute yields aggregated to $1.3 million and $1.3 million in 2015 and 2014, respectively.

 

(2)

Includes residential mortgage loans held for sale. Home equity loans and lines are classified as consumer loans.

 

(3)

Non-accrual loans are included in the average balances.

 

(4)

Includes only investments that are exempt from federal taxes.