Exhibit 99.1

 

News release

  

FOR IMMEDIATE RELEASE

 

SANDY SPRING BANCORP REPORTS NET INCOME OF $10.8 MILLION FOR THE FIRST QUARTER

 

OLNEY, MARYLAND, April 21, 2016 — Sandy Spring Bancorp, Inc., (Nasdaq-SASR) the parent company of Sandy Spring Bank, today reported net income for the first quarter of 2016 of $10.8 million ($0.45 per diluted share) compared to net income of $11.2 million ($0.45 per diluted share) for the first quarter of 2015 and net income of $12.8 million ($0.52 per diluted share) for the fourth quarter of 2015.

 

“Our financial performance in the first quarter was driven by our consistently balanced growth in all lending areas and ongoing deposit gathering efforts. Because of this growth and its positive impact on our net interest income, it allowed us to execute on certain initiatives that initially reflect a lower net income for the quarter when compared to the prior year quarter,” said Daniel J. Schrider, President and Chief Executive Officer.

 

“We expect these initiatives, such as the early payoff of $40 million in high cost FHLB advances and the sale of a portfolio of wealth assets under management, to make a positive contribution to future earnings and also improve our ability to deliver our products and services in a more efficient manner,” said Schrider.

 

First Quarter Highlights:

 

·

Total loans increased 13% compared to the first quarter of 2015 and 2% compared to the fourth quarter of 2015. Growth over the prior year was 10% or better in both the residential mortgage and commercial loan portfolios.

 

·

Combined noninterest-bearing and interest-bearing transaction account balances increased 7% to $1.7 billion at March 31, 2016 as compared to $1.5 billion at March 31, 2015.

 

·

The net interest margin was 3.44% for the first quarter of 2016, compared to 3.44% for the first quarter of 2015 and 3.45% for the fourth quarter of 2015.

 

·

During the quarter, the Company prepaid $40 million in FHLB advances and incurred prepayment penalties of $1.8 million. This transaction was funded primarily by the sale of available-for-sale mortgage-backed securities. While the combination of these transactions was revenue neutral with respect to the first quarter results, the Company expects to realize a positive impact to its net interest margin in future periods.

 

 

·

In February, the Company completed the sale of a portion of its wealth assets under management, which was accompanied by the reduction in advisor headcount by eight persons, as the Company took steps to improve the profitability of its wealth management business.

 

·

During the first quarter of 2016, the Company repurchased 512,000 shares at an average price of $25.90 per share as part of its existing share repurchase program.

 

Review of Balance Sheet and Credit Quality

 

Total assets grew 7% to $4.7 billion at March 31, 2016 compared to $4.4 billion at March 31, 2015. This growth was driven by a 13% increase in the loan portfolio as total loans and leases ended the period at $3.6 billion.

 

At March 31, 2016, combined noninterest-bearing and interest-bearing checking account balances, an important performance driver of multiple-product banking relationships with clients, increased 7% compared to balances at March 31, 2015. Total deposits and certain other short-term borrowings that comprise the funding sources derived from customers, increased 10% compared to March 31, 2015.

 

Tangible common equity totaled $434 million at March 31, 2016 compared to $435 million at March 31, 2015. The ratio of tangible common equity to tangible assets decreased to 9.37% at March 31, 2016 from 10.08% at March 31, 2015 due primarily to the growth in assets and share repurchases. Dividends per common share were $0.24 per share for the quarter compared to $0.22 per common share for the first quarter of 2015, a 9% increase. At March 31, 2016, the Company had a total risk-based capital ratio of 14.02%, a common equity tier 1 risk-based capital ratio of 11.92%, a tier 1 risk-based capital ratio of 12.88% and a tier 1 leverage ratio of 10.23%.

 

Non-performing loans totaled $36.1 million at March 31, 2016 compared to $36.0 million at March 31, 2015 and $34.5 million at December 31, 2015. The level of non-performing loans to total loans decreased to 1.01% at March 31, 2016 compared to 1.14% at March 31, 2015 due to growth in the overall loan portfolio.

 

Loan charge-offs, net of recoveries, totaled $0.4 million for the first quarter of 2016 compared to $0.9 million for the first quarter of 2015 and $0.6 million for the fourth quarter of 2015. The allowance for loan and lease losses represented 1.17% of outstanding loans and leases and 116% of non-performing loans at March 31, 2016 compared to 1.18% of outstanding loans and leases and 104% of non-performing loans at March 31, 2015. Non-performing loans includes accruing loans 90 days or more past due and restructured loans.

 

During the first quarter of 2016, the Company transferred its investments held-to-maturity portfolio, which totaled $208.3 million at December 31, 2015, to available-for-sale. These securities will provide it with additional liquidity to fund future loan growth and other corporate activities.

 

 

Income Statement Review

 

Net interest income for the first quarter of 2016 increased 8% compared to the first quarter of 2015. The net interest margin was 3.44% for the first quarter of both 2016 and 2015 as growth in earning assets was offset by higher funding costs.

 

The provision for loan and lease losses was a charge of $1.2 million for the first quarter of 2016 compared to a charge of $0.6 million for the first quarter of 2015 and a charge of $1.9 million for the fourth quarter of 2015. The current quarter’s charge reflects the growth in the loan portfolio over the prior year quarter.

 

Non-interest income increased to $13.4 million for the first quarter of 2016 compared to $13.2 million for the first quarter of 2015. The increase in non-interest income for the quarter compared to the prior year quarter was due primarily to $1.8 million in gains on investments securities from sales of $40 million in securities to fund the prepayment of FHLB advances discussed previously. Excluding this transaction, non-interest income decreased 12% due to a decrease in income from wealth management due to the sale of a portion of the assets under management and a decrease in income from mortgage banking due primarily to lower mortgage sales volumes.

 

Non-interest expenses increased 11% to $32.3 million for the first quarter of 2016 compared to $29.2 million in the first quarter of 2015. This increase was due mainly to prepayment penalties of $1.8 million for the early payoff of $40 million in high-rate FHLB advances. Excluding the prepayment penalties, non-interest expenses increased 5% due primarily to higher salaries and benefits. The non-GAAP efficiency ratio was 61.84% for the first quarter of 2016 compared to 60.53% for the first quarter of 2015.

 

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) May 5, 2016. A replay of the teleconference will be available through the same time period by calling 1-877-344-7529 under conference call number 10083087.

 

About Sandy Spring Bancorp, Inc.

 

Sandy Spring Bancorp, Inc., headquartered in Olney, Maryland, is the holding company for Sandy Spring Bank. Independent and community-oriented, Sandy Spring Bank offers a broad range of commercial banking, retail banking, mortgage and trust services throughout central Maryland, Northern Virginia, and the greater Washington, D.C. market. Through its subsidiaries, Sandy Spring Insurance Corporation and West Financial Services, Inc., Sandy Spring Bank also offers a comprehensive menu of insurance and wealth management services. With $4.7 billion in assets, the bank operates 45 community offices and six financial centers across the region. Visit www.sandyspringbank.com for more information.

 

 

For additional information or questions, please contact:

 

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

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

Sandy Spring Bancorp

17801 Georgia Avenue

Olney, Maryland 20832

1-800-399-5919

Email:	DSchrider@sandyspringbank.com
	PMantua@sandyspringbank.com

Web site: www.sandyspringbank.com  

 

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, 2015, 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)		2016				2015				Change
Results of Operations:
Net interest income		$	36,122			$	33,373				8	%
Provision for loan and lease losses			1,236				597				107
Non-interest income			13,363				13,159				2
Non-interest expenses			32,317				29,244				11
Income before income taxes			15,932				16,691				(5	)
Net income			10,813				11,225				(4	)
Pre-tax pre-provision income		$	17,168			$	17,488				(2	)
Return on average assets			0.93	%			1.04	%
Return on average common equity			8.29	%			8.73	%
Net interest margin			3.44	%			3.44	%
Efficiency ratio - GAAP basis   (1)			65.31	%			62.85	%
Efficiency ratio - Non-GAAP basis   (1)			61.84	%			60.53	%
Per share data:
Basic net income		$	0.45			$	0.45				-	%
Diluted net income		$	0.45			$	0.45				-
Average fully diluted shares			24,222,940				25,048,576				(3	)
Dividends declared per share		$	0.24			$	0.22				9
Book value per share			21.92				21.10				4
Tangible book value per share			18.21				17.59				4
Outstanding shares			23,827,305				24,733,868				(4	)
Financial Condition at period-end:
Investment securities		$	742,401			$	912,565				(19	)%
Loans and leases			3,560,688				3,164,706				13
Interest-earning assets			4,447,063				4,125,549				8
Assets			4,716,608				4,401,380				7
Deposits			3,412,308				3,109,892				10
Interest-bearing liabilities			3,073,605				2,818,966				9
Stockholders' equity			522,392				521,768				-
Capital ratios:
Tier 1 leverage   (4)			10.23	%			11.00	%
Tier 1 capital to risk-weighted assets   (4)			12.88	%			14.01	%
Total regulatory capital to risk-weighted assets   (4)			14.02	%			15.12	%
Common equity tier 1 capital to risk-weighted assets   (4)			11.92	%			14.01	%
Tangible common equity to tangible assets   (2)			9.37	%			10.08	%
Average equity to average assets			11.19	%			11.92	%
Credit quality ratios:
Allowance for loan and lease losses to loans and leases			1.17	%			1.18	%
Non-performing loans to total loans			1.01	%			1.14	%
Non-performing assets to total assets			0.82	%			0.89	%
Allowance for loan and lease losses to non-performing loans			115.72	%			104.05	%
Annualized net charge-offs to average loans and leases    (3)			0.04	%			0.12	%

 

(1)	The efficiency ratio - GAAP basis is non-interest expenses divided by net interest income plus non-interest income from the Condensed Consolidated Statements of Income. The traditional efficiency ratio - Non-GAAP basis excludes intangible asset amortization from non-interest expense; securities gains (losses) from non-interest income; OTTI; and the tax-equivalent adjustment to net interest income.  See the Reconciliation Table included with these Financial Highlights.
(2)	The tangible common equity to tangible assets ratio is a non-GAAP ratio that divides assets excluding intangible assets into stockholders' equity after deducting intangible assets and other comprehensive gains (losses).  See the Reconciliation Table included with these Financial Highlights.
(3)	Calculation utilizes average loans and leases, excluding residential mortgage loans held-for-sale.
(4)	Estimated ratio at March 31, 2016

 

 

Sandy Spring Bancorp, Inc. and Subsidiaries
RECONCILIATION TABLE - UNAUDITED
		Three Months Ended
		March 31,
(Dollars in thousands)		2016				2015
Pre-tax pre-provision income:
Net income		$	10,813			$	11,225
Plus non-GAAP adjustment:
Litigation expenses			-				200
Income taxes			5,119				5,466
Provision for loan and lease losses			1,236				597
Pre-tax pre-provision income		$	17,168			$	17,488
Efficiency ratio - GAAP basis:
Non-interest expenses		$	32,317			$	29,244
Net interest income plus non-interest income		$	49,485			$	46,532
Efficiency ratio - GAAP basis			65.31	%			62.85	%
Efficiency ratio - Non-GAAP basis:
Non-interest expenses		$	32,317			$	29,244
Less non-GAAP adjustment:
Amortization of intangible assets			32				107
Loss on FHLB redemption			1,751				-
Litigation expenses			-				200
Non-interest expenses -  as adjusted		$	30,534			$	28,937
Net interest income plus non-interest income		$	49,485			$	46,532
Plus non-GAAP adjustment:
Tax-equivalent income			1,664				1,271
Less non-GAAP adjustments:
Securities gains			1,769				-
Net interest income plus non-interest income - as adjusted		$	49,380			$	47,803
Efficiency ratio - Non-GAAP basis			61.84	%			60.53	%
Tangible common equity ratio:
Total stockholders' equity		$	522,392			$	521,768
Accumulated other comprehensive income			(4,233	)			(2,146	)
Goodwill			(84,171	)			(84,171	)
Other intangible assets, net			(105	)			(403	)
Tangible common equity		$	433,883			$	435,048
Total assets		$	4,716,608			$	4,401,380
Goodwill			(84,171	)			(84,171	)
Other intangible assets, net			(105	)			(403	)
Tangible assets		$	4,632,332			$	4,316,806
Tangible common equity ratio			9.37	%			10.08	%
Outstanding common shares			23,827,305				24,733,868
Tangible book value per common share		$	18.21			$	17.59

 

 

Sandy Spring Bancorp, Inc. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF CONDITION  - UNAUDITED
		March 31,				December 31,				March 31,
(Dollars in thousands)		2016				2015				2015
Assets
Cash and due from banks		$	43,228			$	46,956			$	46,771
Federal funds sold			559				472				473
Interest-bearing deposits with banks			115,609				25,454				33,906
Cash and cash equivalents			159,396				72,882				81,150
Residential mortgage loans held for sale (at fair value)			27,806				15,457				13,899
Investments available-for-sale (at fair value)			704,872				592,049				657,709
Investments held-to-maturity -- fair value of $211,704 and $221,687 at December 31, 2015 and March 31, 2015, respectively			-				208,265				217,557
Other equity securities			37,529				41,336				37,299
Total loans and leases			3,560,688				3,495,370				3,164,706
Less: allowance for loan and lease losses			(41,766	)			(40,895	)			(37,475	)
Net loans and leases			3,518,922				3,454,475				3,127,231
Premises and equipment, net			53,307				53,214				51,299
Other real estate owned			2,414				2,742				3,227
Accrued interest receivable			13,660				13,443				12,505
Goodwill			84,171				84,171				84,171
Other intangible assets, net			105				138				403
Other assets			114,426				117,208				114,930
Total assets		$	4,716,608			$	4,655,380			$	4,401,380
Liabilities
Noninterest-bearing deposits		$	1,084,746			$	1,001,841			$	1,017,566
Interest-bearing deposits			2,327,562				2,261,889				2,092,326
Total deposits			3,412,308				3,263,730				3,109,892
Securities sold under retail repurchase agreements and federal funds purchased			121,043				109,145				101,640
Advances from FHLB			590,000				685,000				590,000
Subordinated debentures			35,000				35,000				35,000
Accrued interest payable and other liabilities			35,865				38,078				43,080
Total liabilities			4,194,216				4,130,953				3,879,612
Stockholders' Equity
Common stock -- par value $1.00; shares authorized 50,000,000; shares issued and outstanding 23,827,305, 24,295,971 and 24,733,868 at March 31, 2016, December 31, 2015 and March 31, 2015, respectively			23,827				24,296				24,734
Additional paid in capital			163,522				175,588				186,342
Retained earnings			330,810				325,840				308,546
Accumulated other comprehensive income (loss)			4,233				(1,297	)			2,146
Total stockholders' equity			522,392				524,427				521,768
Total liabilities and stockholders' equity		$	4,716,608			$	4,655,380			$	4,401,380

 

Sandy Spring Bancorp, Inc. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
		Three Months Ended
		March 31,
(Dollars in thousands, except per share data)		2016				2015
Interest Income:
Interest and fees on loans and leases		$	36,206			$	32,139
Interest on loans held for sale			134				76
Interest on deposits with banks			53				22
Interest and dividends on investment securities:
Taxable			3,286				3,577
Exempt from federal income taxes			1,973				2,258
Interest on federal funds sold			1				-
Total interest income			41,653				38,072
Interest Expense:
Interest on deposits			1,837				1,194
Interest on retail repurchase agreements and federal funds purchased			66				50
Interest on advances from FHLB			3,374				3,236
Interest on subordinated debt			254				219
Total interest expense			5,531				4,699
Net interest income			36,122				33,373
Provision for loan and lease losses			1,236				597
Net interest income after provision for loan and lease losses			34,886				32,776
Non-interest Income:
Investment securities gains			1,769				-
Service charges on deposit accounts			1,903				1,882
Mortgage banking activities			535				1,178
Wealth management income			4,405				4,916
Insurance agency commissions			1,445				1,618
Income from bank owned life insurance			615				713
Bank card fees			1,089				1,057
Other income			1,602				1,795
Total non-interest income			13,363				13,159
Non-interest Expenses:
Salaries and employee benefits			18,230				17,299
Occupancy expense of premises			3,473				3,489
Equipment expenses			1,664				1,373
Marketing			681				531
Outside data services			1,363				1,261
FDIC insurance			637				631
Amortization of intangible assets			32				107
Litigation expenses			-				200
Other expenses			6,237				4,353
Total non-interest expenses			32,317				29,244
Income before income taxes			15,932				16,691
Income tax expense			5,119				5,466
Net income		$	10,813			$	11,225
Net Income Per Share Amounts:
Basic net income per share		$	0.45			$	0.45
Diluted net income per share		$	0.45			$	0.45
Dividends declared per share		$	0.24			$	0.22

 

 

Sandy Spring Bancorp, Inc. and Subsidiaries
HISTORICAL TRENDS - QUARTERLY FINANCIAL DATA - UNAUDITED
		2016				2015
(Dollars in thousands, except per share data)		Q1				Q4				Q3				Q2				Q1
Profitability for the Quarter:
Tax-equivalent interest income		$	43,317			$	42,736			$	41,980			$	40,438			$	39,343
Interest expense			5,531				5,297				5,201				4,916				4,699
Tax-equivalent net interest income			37,786				37,439				36,779				35,522				34,644
Tax-equivalent adjustment			1,664				1,662				1,663				1,589				1,271
Provision for loan and lease losses			1,236				1,850				1,706				1,218				597
Non-interest income			13,363				12,243				12,390				12,109				13,159
Non-interest expenses			32,317				26,996				29,630				29,477				29,244
Income before income taxes			15,932				19,174				16,170				15,347				16,691
Income tax expense			5,119				6,372				5,175				5,014				5,466
Net income		$	10,813			$	12,802			$	10,995			$	10,333			$	11,225
Financial Performance:
Pre-tax pre-provision income		$	17,168			$	16,638			$	18,031			$	16,727			$	17,488
Return on average assets			0.93	%			1.11	%			0.96	%			0.93	%			1.04	%
Return on average common equity			8.29	%			9.73	%			8.41	%			8.02	%			8.73	%
Net interest margin			3.44	%			3.45	%			3.43	%			3.42	%			3.44	%
Efficiency ratio - GAAP basis (1)			65.31	%			56.22	%			62.37	%			64.02	%			62.85	%
Efficiency ratio - Non-GAAP basis (1)			61.84	%			63.08	%			59.73	%			61.35	%			60.53	%
Per Share Data:
Basic net income per share		$	0.45			$	0.53			$	0.45			$	0.42			$	0.45
Diluted net income per share		$	0.45			$	0.52			$	0.45			$	0.42			$	0.45
Average fully diluted shares			24,222,940				24,455,847				24,602,817				24,689,762				25,048,576
Dividends declared per common share		$	0.24			$	0.24			$	0.22			$	0.22			$	0.22
Non-interest Income:
Securities gains (losses)		$	1,769			$	16			$	1			$	19			$	-
Service charges on deposit accounts			1,903				1,950				1,936				1,839				1,882
Mortgage banking activities			535				548				566				822				1,178
Wealth management income			4,405				4,891				4,963				5,161				4,916
Insurance agency commissions			1,445				1,029				1,648				881				1,618
Income from bank owned life insurance			615				634				618				606				713
Bank card fees			1,089				1,177				1,198				1,220				1,057
Other income			1,602				1,998				1,460				1,561				1,795
Total Non-interest Income		$	13,363			$	12,243			$	12,390			$	12,109			$	13,159
Non-interest Expense:
Salaries and employee benefits		$	18,230			$	18,437			$	17,733			$	17,534			$	17,299
Occupancy expense of premises			3,473				3,061				3,086				3,173				3,489
Equipment expenses			1,664				1,608				1,600				1,490				1,373
Marketing			681				735				688				942				531
Outside data services			1,363				1,331				1,329				1,102				1,261
FDIC insurance			637				641				565				654				631
Amortization of intangible assets			32				52				107				106				107
Litigation expenses			-				(4,386	)			155				162				200
Professional fees			1,138				1,322				1,089				1,199				1,209
Other real estate owned expenses			17				14				48				4				10
Other expenses			5,082				4,181				3,230				3,111				3,134
Total Non-interest Expense		$	32,317			$	26,996			$	29,630			$	29,477			$	29,244

 

(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
		2016				2015
(Dollars in thousands)		Q1				Q4				Q3				Q2				Q1
Balance Sheets at Quarter End:
Residential mortgage loans		$	804,105			$	796,358			$	773,889			$	744,195			$	728,858
Residential construction loans			138,221				129,281				139,492				137,134				130,321
Commercial ADC loans			261,204				255,980				239,160				223,103				203,731
Commercial investor real estate loans			783,161				719,084				710,694				694,179				668,931
Commercial owner occupied real estate loans			675,560				678,027				680,601				643,973				618,846
Commercial business loans			451,239				465,765				423,855				409,795				385,452
Leasing			-				-				19				21				36
Consumer loans			447,198				450,875				444,729				436,465				428,531
Total loans and leases			3,560,688				3,495,370				3,412,439				3,288,865				3,164,706
Allowance for loan and lease losses			(41,766	)			(40,895	)			(39,661	)			(38,713	)			(37,475	)
Loans held for sale			27,806				15,457				10,418				19,445				13,899
Investment securities			742,401				841,650				862,409				878,284				912,565
Interest-earning assets			4,447,063				4,378,403				4,339,375				4,222,667				4,125,549
Total assets			4,716,608				4,655,380				4,611,034				4,507,367				4,401,380
Noninterest-bearing demand deposits			1,084,746				1,001,841				1,068,299				1,092,413				1,017,566
Total deposits			3,412,308				3,263,730				3,275,668				3,247,346				3,109,892
Customer repurchase agreements			121,043				109,145				121,378				111,817				101,640
Total interest-bearing liabilities			3,073,605				3,091,034				2,973,747				2,851,750				2,818,966
Total stockholders' equity			522,392				524,427				523,594				518,873				521,768
Quarterly Average Balance Sheets:
Residential mortgage loans		$	807,443			$	781,015			$	754,007			$	734,382			$	724,248
Residential construction loans			134,708				133,812				134,448				137,216				132,456
Commercial ADC loans			261,687				247,612				227,545				218,341				206,105
Commercial investor real estate loans			750,821				717,742				704,068				668,883				645,163
Commercial owner occupied real estate loans			677,786				673,883				656,337				624,407				611,722
Commercial business loans			460,903				424,510				413,300				398,510				383,111
Leasing			-				17				19				28				44
Consumer loans			451,075				448,439				441,740				434,011				425,434
Total loans and leases			3,544,423				3,427,030				3,331,464				3,215,778				3,128,283
Loans held for sale			14,036				11,951				21,070				14,075				7,053
Investment securities			810,593				840,276				869,461				898,237				925,683
Interest-earning assets			4,411,796				4,320,674				4,261,939				4,162,963				4,097,648
Total assets			4,685,747				4,594,025				4,537,142				4,438,670				4,372,988
Noninterest-bearing demand deposits			1,021,471				1,058,215				1,063,500				1,023,042				986,688
Total deposits			3,300,131				3,285,299				3,263,993				3,128,562				3,056,186
Customer repurchase agreements			110,862				125,275				121,127				106,179				90,020
Total interest-bearing liabilities			3,103,710				2,968,555				2,906,348				2,852,414				2,817,575
Total stockholders' equity			524,309				521,786				518,619				516,940				521,346
Financial Measures:
Average equity to average assets			11.19	%			11.36	%			11.43	%			11.65	%			11.92	%
Investment securities to earning assets			16.69	%			19.22	%			19.87	%			20.80	%			22.12	%
Loans to earning assets			80.07	%			79.83	%			78.64	%			77.89	%			76.71	%
Loans to assets			75.49	%			75.08	%			74.01	%			72.97	%			71.90	%
Loans to deposits			104.35	%			107.10	%			104.18	%			101.28	%			101.76	%
Capital Measures:
Tier 1 leverage  (1)			10.23	%			10.60	%			10.65	%			10.83	%			11.00	%
Tier 1 capital to risk-weighted assets  (1)			12.88	%			13.13	%			13.17	%			13.54	%			14.01	%
Total regulatory capital to risk-weighted assets  (1)			14.02	%			14.25	%			14.27	%			14.65	%			15.12	%
Common equity tier 1 capital to risk-weighted assets   (1)			11.92	%			12.17	%			12.20	%			12.53	%			14.01	%
Book value per share		$	21.92			$	21.58			$	21.44			$	21.12			$	21.10
Outstanding shares			23,827,305				24,295,971				24,424,944				24,562,471				24,733,868

 

(1)

Estimated ratio at March 31, 2016

 

 

Sandy Spring Bancorp, Inc. and Subsidiaries
LOAN PORTFOLIO QUALITY DETAIL - UNAUDITED
		2016				2015
(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		$	-			$	-			$	-			$	-			$	-
Commercial real estate:
Commercial AD&C			-				-				-				-				-
Commercial investor real estate			-				-				-				-				-
Commercial owner occupied real estate			-				-				-				-				-
Leasing			-				-				1				2				-
Consumer			1				-				-				7				-
Residential real estate:
Residential mortgage			-				-				-				-				-
Residential construction			-				-				-				-				-
Total loans and leases 90 days past due			1				-				1				9				-
Non-accrual loans and leases:
Commercial business			3,741				3,696				3,881				3,285				4,166
Commercial real estate:
Commercial AD&C			147				194				194				194				1,363
Commercial investor real estate			7,885				8,368				8,609				10,023				10,083
Commercial owner occupied real estate			7,149				6,340				7,932				8,423				8,974
Leasing			-				-				-				-				-
Consumer			2,715				2,193				1,621				1,214				1,962
Residential real estate:
Residential mortgage			9,329				8,822				7,488				7,780				3,235
Residential construction			412				418				770				780				788
Total non-accrual loans and leases			31,378				30,031				30,495				31,699				30,571
Total restructured loans - accruing			4,716				4,467				6,419				5,620				5,446
Total non-performing loans and leases			36,095				34,498				36,915				37,328				36,017
Other assets and real estate owned (OREO)			2,414				2,742				2,619				4,514				3,227
Total non-performing assets		$	38,509			$	37,240			$	39,534			$	41,842			$	39,244
			For the quarter ended
			March 31,				December 31,				September 30,				June 30,				March 31,
(Dollars in thousands)			2016				2015				2015				2015				2015
Analysis of Non-accrual Loan and Lease Activity:
Balance at beginning of period		$	30,031			$	30,495			$	31,699			$	30,571			$	28,530
Non-accrual balances transferred to OREO			-				(423	)			(180	)			(1,309	)			(32	)
Non-accrual balances charged-off			(274	)			(869	)			(752	)			(549	)			(1,077	)
Net payments or draws			(914	)			(3,084	)			(1,846	)			(2,970	)			(1,067	)
Loans placed on non-accrual			2,535				3,912				1,574				5,956				4,217
Non-accrual loans brought current			-				-				-				-				-
Balance at end of period		$	31,378			$	30,031			$	30,495			$	31,699			$	30,571
Analysis of Allowance for Loan Losses:
Balance at beginning of period		$	40,895			$	39,661			$	38,713			$	37,475			$	37,802
Provision for loan and lease losses			1,236				1,850				1,706				1,218				597
Less loans charged-off, net of recoveries:
Commercial business			67				(128	)			(25	)			73				(89	)
Commercial real estate:
Commercial AD&C			48				-				-				(547	)			706
Commercial investor real estate			192				(4	)			(5	)			85				(5	)
Commercial owner occupied real estate			(3	)			725				104				(1	)			212
Leasing			-				4				-				-				-
Consumer			54				(31	)			348				395				43
Residential real estate:
Residential mortgage			15				80				342				(18	)			65
Residential construction			(8	)			(30	)			(6	)			(7	)			(8	)
Net charge-offs			365				616				758				(20	)			924
Balance at end of period		$	41,766			$	40,895			$	39,661			$	38,713			$	37,475
Asset Quality Ratios:
Non-performing loans to total loans			1.01	%			0.99	%			1.08	%			1.13	%			1.14	%
Non-performing assets to total assets			0.82	%			0.80	%			0.86	%			0.93	%			0.89	%
Allowance for loan losses to loans			1.17	%			1.17	%			1.16	%			1.18	%			1.18	%
Allowance for loan losses to non-performing loans			115.72	%			118.54	%			107.44	%			103.71	%			104.05	%
Annualized net charge-offs to average loans			0.04	%			0.07	%			0.09	%			0.00	%			0.12	%

 

 

CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES - UNAUDITED
		Three Months Ended March 31,
		2016												2015
										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		$	807,443			$	6,868				3.40	%		$	724,248			$	6,124				3.38	%
Residential construction loans			134,708				1,195				3.57				132,456				1,221				3.74
Total mortgage loans			942,151				8,063				3.43				856,704				7,345				3.44
Commercial ADC loans			261,687				2,998				4.61				206,105				2,337				4.60
Commercial investor real estate loans			750,821				8,612				4.61				645,163				7,579				4.76
Commercial owner occupied real estate loans			677,786				8,085				4.80				611,722				7,165				4.99
Commercial business loans			460,903				5,013				4.37				383,111				4,212				4.38
Leasing			-				-				-				44				1				5.19
Total commercial loans and leases			2,151,197				24,708				4.62				1,846,145				21,294				4.74
Consumer loans			451,075				3,889				3.49				425,434				3,500				3.36
Total loans and leases (2)			3,544,423				36,660				4.16				3,128,283				32,139				4.19
Loans held for sale			14,036				134				3.82				7,053				76				4.33
Taxable securities			523,873				3,413				2.61				629,266				3,936				2.54
Tax-exempt securities (3)			286,720				3,056				4.26				296,417				3,170				4.34
Total investment securities			810,593				6,469				3.19				925,683				7,106				3.07
Interest-bearing deposits with banks			42,255				53				0.50				36,155				22				0.25
Federal funds sold			489				1				0.47				474				-				0.22
Total interest-earning assets			4,411,796				43,317				3.94				4,097,648				39,343				3.90
Less:  allowance for loan and lease losses			(41,070	)											(37,444	)
Cash and due from banks			47,039												46,430
Premises and equipment, net			53,574												50,658
Other assets			214,408												215,696
Total assets		$	4,685,747											$	4,372,988
Liabilities and Stockholders' Equity
Interest-bearing demand deposits		$	569,219				108				0.08	%		$	524,059				106				0.08	%
Regular savings deposits			290,243				42				0.06				270,198				34				0.05
Money market savings deposits			897,034				437				0.20				831,707				273				0.13
Time deposits			522,164				1,250				0.96				443,534				781				0.71
Total interest-bearing deposits			2,278,660				1,837				0.32				2,069,498				1,194				0.23
Other borrowings			110,984				66				0.24				90,188				50				0.22
Advances from FHLB			679,066				3,374				2.00				622,889				3,236				2.11
Subordinated debentures			35,000				254				2.90				35,000				219				2.50
Total interest-bearing liabilities			3,103,710				5,531				0.72				2,817,575				4,699				0.68
Noninterest-bearing demand deposits			1,021,471												986,688
Other liabilities			36,257												47,379
Stockholders' equity			524,309												521,346
Total liabilities and stockholders' equity		$	4,685,747											$	4,372,988
Net interest income and spread						$	37,786				3.22	%						$	34,644				3.22	%
Less: tax-equivalent adjustment							1,664												1,271
Net interest income						$	36,122											$	33,373
Interest income/earning assets											3.94	%											3.90	%
Interest expense/earning assets											0.50												0.46
Net interest margin											3.44	%											3.44	%

 

(1)

Tax-equivalent income has been adjusted using the combined marginal federal and state rate of 39.88% for 2016 and 2015. The annualized taxable-equivalent adjustments utilized in the above table to compute yields aggregated to $1.7 million and $1.3 million in 2016 and 2015, respectively.

(2)

Non-accrual loans are included in the average balances.

(3)

Includes only investments that are exempt from federal taxes.