2019 Spring

Year-Over-Year Operating Earnings Increase 49%

OLNEY, Md., Oct. 22, 2020 (GLOBE NEWSWIRE) -- Sandy Spring Bancorp, Inc., (Nasdaq-SASR), the parent company of Sandy Spring Bank, today reported record net income of $44.6 million ($0.94 per diluted common share) for the third quarter of 2020. The current quarters result compares to net income of $29.4 million ($0.82 per diluted common share) for the third quarter of 2019 and a loss of $14.3 million ($0.31 per diluted common share) for the second quarter of 2020.

Operating earnings for the current quarter, which excludes the impact of merger and acquisition expense, the provision for credit losses and the effects from the Paycheck Protection Program (PPP or PPP program), each on an after-tax basis, were $45.9 million ($0.97 per diluted common share), compared to $30.8 million ($0.86 per diluted common share) for the quarter ended September 30, 2019 and $42.0 million ($0.88 per diluted common share) for the quarter ended June 30, 2020.

The current quarters results included $1.3 million for merger and acquisition expense related to the second quarter acquisition of Revere Bank (Revere) as compared to $22.5 million for the linked quarter.   The provision for credit losses for the current quarter was $7.0 million as compared to $58.7 million for the second quarter of 2020. The decrease in the provision for credit losses compared to the prior quarter is a result of the stability of the economic forecast compared to the prior quarter and resiliency of the loan portfolios credit quality.

The record net income and earnings per share that we delivered clearly reflect the value of our Revere Bank acquisition, though we have yet to realize the full potential of the transaction, said Daniel J. Schrider, President and Chief Executive Officer. Our team seamlessly completed the systems integration of Revere Bank in the third quarter, notwithstanding the challenging work environment necessitated by the COVID-19 pandemic. As a result, the former Revere clients now have access to all Sandy Spring Bank services and locations. We remain focused on strengthening our client relationships and working closely with borrowers to see them through these extraordinary times.

Third

Quarter Highlights:

  • Total assets at September 30, 2020, grew 50% to $12.7 billion compared to September 30, 2019 primarily as a result of the Revere acquisition and participation in the PPP. Loans and deposits grew by 57% and 53%, respectively.   On the date of acquisition, Reveres loans and deposits were $2.5 billion and $2.3 billion, respectively. The Company originated $1.1 billion in commercial business loans through the PPP.

  • The net interest margin was 3.24% for the third quarter of 2020, compared to 3.51% for the same quarter of 2019, and 3.47% for the second quarter of 2020. Excluding the impact of the amortization of the fair value marks derived from acquisitions, the current quarters net interest margin would have been 3.18%, compared to 3.47% for third quarter of 2019, and 3.19% for the second quarter of 2020.

  • The provision for credit losses was $7.0 million for the current quarter. The lower provision for the current quarter as compared to the prior quarters provision of $58.7 million was the result of the stabilization in economic projections compared to the prior quarter and resiliency of the loan portfolios credit quality.

  • Non-interest income increased from the prior year quarter by 58% to $29.4 million, as a result of a 220% increase in income from mortgage banking activities and growth of 42% in wealth management income as a result of the acquisition of Rembert Pendleton Jackson (RPJ) in the first quarter of the year.

  • Non-interest expense for the third quarter of 2020 increased $16.0 million or 36% compared to the prior year quarter. This increase was driven by the impact of the acquisition of Revere and RPJ, which increased compensation costs, facilities and operational costs and merger and acquisition expenses.

  • Return on average assets (ROA) for the quarter ended September 30, 2020 was 1.38% and return on average on tangible common equity (ROTCE) was 18.16%. This compares to 1.39% and 15.13% for ROA and ROTCE, respectively, for the prior year. The non-GAAP efficiency ratio for the third quarter of 2020 was 45.27% compared to 50.95% for the third quarter of 2019.

Response to COVID-19

The Company continues to focus on protecting the health and well-being of its employees and clients and assisting clients who have been impacted by the COVID-19 pandemic. A substantial majority of non-branch employees continue to work remotely and clients are served at branches primarily through drive-thru facilities and limited lobby access. Area jurisdictions continue to monitor and modify their respective pandemic guidelines on a periodic basis. Currently, the Company is maintaining its first phase of its return to work plan.

The Companys participation in the Small Business Administrations PPP has resulted in the approval of over 5,400 loans for a total of $1.1 billion in loans to businesses to assist them in maintaining their payroll of an estimated 112,000 employees and cover applicable overhead.   The Company is developing a digital PPP forgiveness application that will be submitted to the SBA. The Company anticipates launching the forgiveness application in its PPP client portal in the coming weeks.

The Company has provided for deferment of certain loan payments up to 90 days to provide relief to our qualified commercial, mortgage and consumer loan customers.   From March through October 12, 2020, the Company granted payment modifications/deferrals on over 2,500 loans with an aggregate balance of $2.0 billion, of which 481 loans with an aggregate balance of $502 million remain in deferral status.

For additional information about the Companys response to the COVID-19 pandemic, segments of the Companys loan portfolio exposed to industries adversely impacted by the pandemic, and our response to clients who sought loan payment deferral, we have provided supplemental materials available at the Investor Relations section of the Sandy Spring Website at >www.sandyspringbank.com .

Balance Sheet and Credit Quality

Total assets grew to $12.7 billion at September 30, 2020, as compared to $8.4 billion at September 30, 2019, primarily as a result of the acquisition of Revere during the second quarter of the current year. In addition, the Companys participation in the PPP program had a further positive impact on the year-over-year asset growth. During this period, total loans grew by 57% to $10.3 billion at September 30, 2020, compared to $6.6 billion at September 30, 2019. Excluding PPP loans, total loans grew 41% to $9.3 billion at September 30, 2020 as compared to the prior year quarter. Commercial loans, excluding PPP loans, grew 55% or $2.6 billion while the remainder of the loan portfolio grew 2%. The majority of the commercial loan growth was driven by the acquisition of Revere. Consumer loans grew 9% due to the Revere acquisition. Deposit growth was 53% from September 30, 2019 through September 30, 2020, as noninterest-bearing deposits experienced growth of 66% and interest-bearing deposits grew 47%. This growth was driven primarily by the Revere acquisition.   During the current quarter, excess liquidity was used to reduce borrowings under the Paycheck Protection Program Liquidity Facility (PPPLF) program by approximately $580 million.

At September 30, 2020, tangible common equity increased to $1.0 billion or 8.17% of tangible assets compared to $787.3 million or 9.74% at September 30, 2019, as a result of the equity issuance in the Revere acquisition. The year-over-year change in tangible common equity also reflects the effects of the repurchase of $50 million of common stock and the increase in intangible assets and goodwill associated with the two acquisitions during the past twelve months. At September 30, 2020, the Company had a total risk-based capital ratio of 14.02%, a common equity tier 1 risk-based capital ratio of 10.45%, a tier 1 risk-based capital ratio of 10.45% and a tier 1 leverage ratio of 8.65%.

The level of non-performing loans to total loans increased to 0.72% at September 30, 2020, compared to 0.61% at September 30, 2019, and decreased from 0.77% at June 30, 2020. At September 30, 2020, non-performing loans totaled $74.7 million, compared to $40.1 million at September 30, 2019, and $79.9 million at June 30, 2020. Non-performing loans include accruing loans 90 days or more past due and restructured loans. The year-over-year growth in non-performing loans was driven by three major components: loans placed in non-accrual status, acquired Revere non-accrual loans, and loans previously accounted for as purchased credit impaired loans that have been designated as non-accrual loans as a result of the Companys adoption of the accounting standard for expected credit losses at the beginning of the year. Loans placed on non-accrual during the current quarter amounted to $0.9 million compared to $6.0 million for the prior year quarter and $27.3 million for the second quarter of 2020, which included $11.3 million in Revere non-accrual loans as of the acquisition date.

The Company recorded net charge-offs of $0.2 million for the third quarter of 2020, as compared to net charge-offs of $0.6 million and net recoveries of $0.4 million for the third quarter of 2019 and the second quarter of 2020, respectively.

At September 30, 2020, the allowance for credit losses was $170.3 million or 1.65% of outstanding loans and 228% of non-performing loans, compared to $163.5 million or 1.58% of outstanding loans and 205% of non-performing loans at June 30, 2020. The modest increase in the allowance from the linked quarter resulted from the combination of the impact of the updated projected future economic metrics and qualitative assessment of the loan portfolio.

Income Statement Review

Quarterly Results

Net interest income for the third quarter of 2020 increased 46% compared to the third quarter of 2019, driven primarily by the acquisition of Revere. The PPP program and its associated funding contributed a net of $6.6 million to net interest income for the quarter. The net interest margin declined to 3.24% for the third quarter of 2020, compared to 3.51% for the third quarter of 2019. Excluding the net $1.9 million impact of the amortization of the fair value marks derived from acquisitions, the net interest margin would have been 3.18%.

The provision for credit losses was $7.0 million for the third quarter of 2020, compared to $1.5 million for the third quarter of 2019 and $58.7 million for the second quarter of 2020. The decrease in the current quarters provision for credit losses, compared to the prior quarter, is a result of the stability of economic forecast compared to the prior quarter and resiliency of the loan portfolios credit quality. The provision for credit losses during the second quarter was primarily the result of deterioration in forecasted economic conditions ($33.8 million) and the initial allowance required on Revere non-purchased credit deteriorated loans ($17.5 million).

Non-interest income increased $10.8 million or 58% during the current quarter compared the same quarter of the prior year. During this period, income from mortgage banking activities increased $9.7 million as a result of a high level of refinancing activity and wealth management income increased $2.3 million as a result of the first quarter acquisition of RPJ. This growth more than compensated for the $1.4 million of the combined declines in service fee and other non-interest income as compared to the prior year quarter.

Non-interest expense grew 36% or $16.0 million from the prior year quarter. Excluding the impact of merger and acquisition expense, non-interest expense grew 34% year-over-year, primarily as a result of the operational cost of the Revere and RPJ acquisitions, increased compensation expense related to staffing increases, incentive compensation and annual merit increases, in addition to an increase in FDIC insurance and the amortization of intangible assets.

The non-GAAP efficiency ratio was 45.27% for the current quarter as compared to 50.95% for the third quarter of 2019 and 43.85% for the second quarter of 2020. The decrease in the efficiency ratio (reflecting an increase in efficiency) from the third quarter of last year to the current year was the result of the $41.0 million growth in non-GAAP revenue outpacing the $13.6 million growth in non-GAAP non-interest expense.

Year to Date Results

Net interest income for the nine months ended September 30, 2020 increased 32% or $63.6 million compared to the same period of 2019. This increase was driven primarily by the acquisition of Revere in the second quarter of the current year. Additionally, the income generated by the PPP program, net of its associated funding, contributed a net of $12.1 million to the growth in net interest income year-over-year.   The net interest margin declined to 3.33% for the nine months ended September 30, 2020, compared to 3.55% for the same period of the prior year. Excluding the net $10.5 million impact of the amortization of the fair value marks derived from acquisitions, the net interest margin would have been 3.21%. Included in the current period net interest income is a benefit realized from the accelerated amortization of the $5.8 million purchase premium on acquired FHLB advances as a result of the prepayment of those borrowings.

The provision for credit losses for the nine months ended September 30, 2020 amounted to $90.2 million as compared to $3.0 million for the same period in 2019. The provision for credit losses under the CECL standard reflects the combined results of the impact of the deteriorated economic forecasts during the year ($59.3 million) and the initial allowance on acquired Revere non-purchased credit deteriorated loans ($17.5 million). The change in the portfolio mix and various qualitative adjustments resulted in the remainder of provision growth for the period.

Non-interest income rose to $70.5 million or 35% above prior year levels. Income from mortgage banking activities increased $15.0 million as a result of the high levels of refinancing activity, and wealth management income increased $6.1 million as a result of the first quarter acquisition of RPJ. These increases more than offset declines in deposit service fees, the reduction in BOLI income, due to the absence of mortality income that occurred in 2019, and lower other non-interest income.  

Non-interest expense increased 46% or $61.1 million for the first nine months of 2020, compared to the first nine months of 2019. Merger and acquisition expense accounted for $24.8 million of the growth of non-interest expense. The non-interest expense growth also included $5.9 million in prepayment penalties resulting from the liquidation of acquired FHLB borrowings. Excluding the impact of these items results in a year-over-year growth rate of 23%. This growth rate was driven by operational and compensation cost associated with the Revere and RPJ acquisitions, increased incentive expense related to the significant level of mortgage loan originations, intangible amortization and annual employee merit increases.  

The effective tax rate for the nine months ended September 30, 2020 was 18.7%, compared to 24.0% for the same period in 2019. This decrease was the result of the recent changes to tax laws that expanded the time permitted to utilize previous net operating losses. The Company applied this change to the 2018 acquisition of WashingtonFirst Bankshares, Inc. to realize a tax benefit of $1.8 million for the current year.

The non-GAAP efficiency ratio for the current year-to-date was 47.10% compared to 51.36% for the prior year period. The improvement in the current years efficiency ratio compared to the prior year was the result of the growth in non-GAAP revenue, which outpaced the growth in non-GAAP non-interest expense.

Explanation of Non-GAAP Financial Measures

This news release contains financial information and performance measures determined by methods other than in accordance with generally accepted accounting principles in the United States (GAAP). The Companys management believes that the supplemental non-GAAP information provides a better comparison of period-to-period operating performance. Additionally, the Company believes this information is utilized by regulators and market analysts to evaluate a companys financial condition and therefore, such information is useful to investors. Non-GAAP measures used in this release consist of the following:

  • Tangible common equity and related measures are non-GAAP measures that exclude the impact of intangible assets.

  • The non-GAAP efficiency ratio is non-GAAP in that it excludes amortization of intangible assets, loss on FHLB redemption, merger and acquisition expense and securities gains and includes tax-equivalent income.

  • Operating earnings - and the related measures of operating earnings per share, operating return on average assets and operating return on average tangible common equity - reflect net income exclusive of the provision for credit losses, merger and acquisition expense and the income and expense associated with the PPP program, in each case net of tax.

These disclosures should not be viewed as a substitute for financial results in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies. Please refer to the non-GAAP Reconciliation tables included with this release for a reconciliation of these non-GAAP measures to the most directly comparable GAAP measure.

Conference Call

The Companys management will host a conference call to discuss its third quarter results today at 2:00 p.m. (ET). A live Webcast of the conference call is available through the Investor Relations section of the Sandy Spring Website at www.sandyspringbank.com . Participants may call 1-866-235-9910. A password is not necessary. Visitors to the Website are advised to log on 10 minutes ahead of the scheduled start of the call. An internet-based replay will be available on the website until 9:00 am (ET) November 5, 2020. A replay of the teleconference will be available through the same time period by calling 1-877-344-7529 under conference call number 10148248.

About Sandy Spring Bancorp, Inc.

Sandy Spring Bancorp, Inc., headquartered in Olney, Maryland, is the holding company for Sandy Spring Bank, a premier community bank in the Greater Washington, D.C. region. With  ove r 65 locati ons , the bank offers a broad range of  commercial  and  retail bankingmortgageprivate banking , and  trust  services throughout Maryland, Northern Virginia, and Washington, D.C. Through its subsidiaries,  Rembert Pendleton JacksonSandy Spring Insurance Corporation  and  West Financial Services, Inc. , Sandy Spring Bank also offers a comprehensive menu of  insurance  and  wealth management services .

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

Website: www.sandyspringbank.com

Media Contact:

Jen Schell

301-570-8331

jschell@sandyspringbank.com

 

Forward-Looking Statements

Sandy Spring Bancorps forward-looking statements are subject to the following principal risks and uncertainties: risks, uncertainties and other factors relating to the COVID-19 pandemic, including the length of time that the pandemic continues, the imposition or re-imposition of stay-at-home orders and restrictions on business activities or travel~ the effect of the pandemic on the general economy and on the businesses of our borrowers and their ability to make payments on their obligations; the remedial actions and stimulus measures adopted by federal, state and local governments; the inability of employees to work due to illness, quarantine, or government mandates; 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 Companys loan or investment portfolios; changes in competitive pressures among financial institutions or from non-financial institutions; the Companys ability to retain key members of management; changes in legislation, regulations, and policies; the possibility that any of the anticipated benefits of acquisitions will not be realized or will not be realized within the expected time period; and a variety of other matters which, by their nature, are subject to significant uncertainties. Sandy Spring Bancorp provides greater detail regarding some of these factors in its Form 10-K for the year ended December 31, 2019, including in the Risk Factors section of that report, and in its other SEC reports. Sandy Spring Bancorps 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 SECs Web site at www.sec.gov .

Sandy Spring Bancorp, Inc. and Subsidiaries

 

 

 

 

 

 

 

 

 

 

 

 

FINANCIAL HIGHLIGHTS - UNAUDITED

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

Nine Months Ended

 

 

 

 

September 30,

 

%

 

September 30,

 

%

(Dollars in thousands, except per share data)

 

2020

 

2019

 

Change

 

2020

 

2019

 

Change

Results of Operations:

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

97,484

 

$

66,790

 

46

%

 

$

263,332

 

$

199,725

 

32

%

Provision for credit losses

 

 

7,003

 

 

1,524

 

n.m

 

 

 

90,158

 

 

3,029

 

n.m

 

Non-interest income

 

 

29,390

 

 

18,573

 

58

 

 

 

70,482

 

 

52,098

 

35

 

Non-interest expense

 

 

60,937

 

 

44,925

 

36

 

 

 

194,121

 

 

133,004

 

46

 

Income before income taxes

 

 

58,934

 

 

38,914

 

51

 

 

 

49,535

 

 

115,790

 

(57

)

Net income

 

 

44,642

 

 

29,383

 

52

 

 

 

40,291

 

 

87,976

 

(54

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to common shareholders

 

$

44,268

 

$

29,196

 

52

 

 

$

39,974

 

$

87,407

 

(54

)

Pre-tax pre-provision pre-merger income (1)

 

$

67,200

 

$

40,802

 

65

 

 

$

164,864

 

$

119,183

 

38

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

1.38

%

 

1.39

%

 

 

 

0.47

%

 

1.42

%

 

Return on average common equity

 

 

12.67

%

 

10.38

%

 

 

 

4.12

%

 

10.71

%

 

Return on average tangible common equity

 

 

18.16

%

 

15.13

%

 

 

 

5.93

%

 

15.66

%

 

Net interest margin

 

 

3.24

%

 

3.51

%

 

 

 

3.33

%

 

3.55

%

 

Efficiency ratio - GAAP basis (2)

 

 

48.03

%

 

52.63

%

 

 

 

58.15

%

 

52.82

%

 

Efficiency ratio - Non-GAAP basis (2)

 

 

45.27

%

 

50.95

%

 

 

 

47.10

%

 

51.36

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Per share data:

 

 

 

 

 

 

 

 

 

 

 

 

Basic net income per common share

 

$

0.94

 

$

0.82

 

15

%

 

$

0.93

 

$

2.46

 

(62

)%

Diluted net income per common share

 

$

0.94

 

$

0.82

 

15

 

 

$

0.93

 

$

2.45

 

(62

)

Weighted average diluted common shares

 

 

47,175,071

 

 

35,671,721

 

32

 

 

 

43,070,672

 

 

35,642,556

 

21

 

Dividends declared per share

 

$

0.30

 

$

0.30

 

-

 

 

$

0.90

 

$

0.88

 

2

 

Book value per common share

 

 

30.30

 

 

32.00

 

(5

)

 

 

30.30

 

 

32.00

 

(5

)

Tangible book value per common share (1)

 

 

21.32

 

 

22.10

 

(4

)

 

 

21.32

 

 

22.10

 

(4

)

Outstanding common shares

 

 

47,025,779

 

 

35,625,822

 

32

 

 

 

47,025,779

 

 

35,625,822

 

32

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Condition at period-end:

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities

 

$

1,425,733

 

$

946,210

 

51

%

 

$

1,425,733

 

$

946,210

 

51

%

Loans

 

 

10,333,935

 

 

6,596,548

 

57

 

 

 

10,333,935

 

 

6,596,548

 

57

 

Interest-earning assets

 

 

11,965,915

 

 

7,742,138

 

55

 

 

 

11,965,915

 

 

7,742,138

 

55

 

Assets

 

 

12,678,131

 

 

8,437,538

 

50

 

 

 

12,678,131

 

 

8,437,538

 

50

 

Deposits

 

 

9,964,969

 

 

6,493,899

 

53

 

 

 

9,964,969

 

 

6,493,899

 

53

 

Interest-bearing liabilities

 

 

7,643,381

 

 

5,093,265

 

50

 

 

 

7,643,381

 

 

5,093,265

 

50

 

Stockholders' equity

 

 

1,424,749

 

 

1,140,041

 

25

 

 

 

1,424,749

 

 

1,140,041

 

25

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital ratios:

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 leverage (3)

 

 

8.65

%

 

9.96

%

 

 

 

8.65

%

 

9.96

%

 

Common equity tier 1 capital to risk-weighted assets (3)

 

 

10.45

%

 

11.37

%

 

 

 

10.45

%

 

11.37

%

 

Tier 1 capital to risk-weighted assets (3)

 

 

10.45

%

 

11.52

%

 

 

 

10.45

%

 

11.52

%

 

Total regulatory capital to risk-weighted assets (3)

 

 

14.02

%

 

12.70

%

 

 

 

14.02

%

 

12.70

%

 

Tangible common equity to tangible assets (4)

 

 

8.17

%

 

9.74

%

 

 

 

8.17

%

 

9.74

%

 

Average equity to average assets

 

 

10.92

%

 

13.42

%

 

 

 

11.39

%

 

13.22

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit quality ratios:

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses to loans

 

 

1.65

%

 

0.83

%

 

 

 

1.65

%

 

0.83

%

 

Non-performing loans to total loans

 

 

0.72

%

 

0.61

%

 

 

 

0.72

%

 

0.61

%

 

Non-performing assets to total assets

 

 

0.60

%

 

0.49

%

 

 

 

0.60

%

 

0.49

%

 

Allowance for credit losses to non-performing loans

 

 

228.03

%

 

137.05

%

 

 

 

228.03

%

 

137.05

%

 

Annualized net charge-offs to average loans (5)

 

 

0.01

%

 

0.03

%

 

 

 

0.01

%

 

0.03

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Represents a Non-GAAP measure.

 

 

 

 

 

 

 

 

 

 

 

 

(2) The efficiency ratio - GAAP basis is non-interest expense 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, loss on FHLB redemption, and merger and acquisition expense from non-interest expense; securities gains from non-interest income and adds the tax-equivalent adjustment to net interest income. See the Reconciliation Table included with these Financial Highlights.

(3) Estimated ratio at September 30, 2020            

(4) 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.

(5) Calculation utilizes average loans, excluding residential mortgage loans held-for-sale.          

 

 

 

 

 

 

 

 

 

 

 

 

 

Sandy Spring Bancorp, Inc. and Subsidiaries

 

 

 

 

 

 

 

 

RECONCILIATION TABLE - UNAUDITED

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

September 30,

 

September 30,

(Dollars in thousands)

 

 

2020

 

 

 

2019

 

 

 

2020

 

 

 

2019

 

Pre-tax pre-provision pre-merger income:

 

 

 

 

 

 

 

 

Net income

 

$

44,642

 

 

$

29,383

 

 

$

40,291

 

 

$

87,976

 

Plus non-GAAP adjustments:

 

 

 

 

 

 

 

 

Merger and acquisition expense

 

 

1,263

 

 

 

364

 

 

 

25,171

 

 

 

364

 

Income taxes

 

 

14,292

 

 

 

9,531

 

 

 

9,244

 

 

 

27,814

 

Provision for credit losses

 

 

7,003

 

 

 

1,524

 

 

 

90,158

 

 

 

3,029

 

Pre-tax pre-provision pre-merger income

 

$

67,200

 

 

$

40,802

 

 

$

164,864

 

 

$

119,183

 

 

 

 

 

 

 

 

 

 

Efficiency ratio - GAAP basis:

 

 

 

 

 

 

 

 

Non-interest expense

 

$

60,937

 

 

$

44,925

 

 

$

194,121

 

 

$

133,004

 

 

 

 

 

 

 

 

 

 

Net interest income plus non-interest income

 

$

126,874

 

 

$

85,363

 

 

$

333,814

 

 

$

251,823

 

 

 

 

 

 

 

 

 

 

Efficiency ratio - GAAP basis

 

 

48.03

%

 

 

52.63

%

 

 

58.15

%

 

 

52.82

%

 

 

 

 

 

 

 

 

 

Efficiency ratio - Non-GAAP basis:

 

 

 

 

 

 

 

 

Non-interest expense

 

$

60,937

 

 

$

44,925

 

 

$

194,121

 

 

$

133,004

 

Less non-GAAP adjustments:

 

 

 

 

 

 

 

 

Amortization of intangible assets

 

 

1,968

 

 

 

491

 

 

 

4,566

 

 

 

1,465

 

Loss on FHLB Redemption

 

 

-

 

 

 

-

 

 

 

5,928

 

 

 

-

 

Merger and acquisition expense

 

 

1,263

 

 

 

364

 

 

 

25,171

 

 

 

364

 

Non-interest expense - as adjusted

 

$

57,706

 

 

$

44,070

 

 

$

158,456

 

 

$

131,175

 

 

 

 

 

 

 

 

 

 

Net interest income plus non-interest income

 

$

126,874

 

 

$

85,363

 

 

$

333,814

 

 

$

251,823

 

Plus non-GAAP adjustment:

 

 

 

 

 

 

 

 

Tax-equivalent income

 

 

643

 

 

 

1,147

 

 

 

3,076

 

 

 

3,597

 

Less non-GAAP adjustment:

 

 

 

 

 

 

 

 

Securities gains

 

 

51

 

 

 

15

 

 

 

432

 

 

 

20

 

Net interest income plus non-interest income - as adjusted

 

$

127,466

 

 

$

86,495

 

 

$

336,458

 

 

$

255,400

 

 

 

 

 

 

 

 

 

 

Efficiency ratio - Non-GAAP basis

 

 

45.27

%

 

 

50.95

%

 

 

47.10

%

 

 

51.36

%

 

 

 

 

 

 

 

 

 

Tangible common equity ratio:

 

 

 

 

 

 

 

 

Total stockholders' equity

 

$

1,424,749

 

 

$

1,140,041

 

 

$

1,424,749

 

 

$

1,140,041

 

Accumulated other comprehensive (income)/ loss

 

 

(17,493

)

 

 

2,708

 

 

 

(17,493

)

 

 

2,708

 

Goodwill

 

 

(370,549

)

 

 

(347,149

)

 

 

(370,549

)

 

 

(347,149

)

Other intangible assets, net

 

 

(34,175

)

 

 

(8,322

)

 

 

(34,175

)

 

 

(8,322

)

Tangible common equity

 

$

1,002,532

 

 

$

787,278

 

 

$

1,002,532

 

 

$

787,278

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

12,678,131

 

 

$

8,437,538

 

 

$

12,678,131

 

 

$

8,437,538

 

Goodwill

 

 

(370,549

)

 

 

(347,149

)

 

 

(370,549

)

 

 

(347,149

)

Other intangible assets, net

 

 

(34,175

)

 

 

(8,322

)

 

 

(34,175

)

 

 

(8,322

)

Tangible assets

 

$

12,273,407

 

 

$

8,082,067

 

 

$

12,273,407

 

 

$

8,082,067

 

 

 

 

 

 

 

 

 

 

Tangible common equity ratio

 

 

8.17

%

 

 

9.74

%

 

 

8.17

%

 

 

9.74

%

 

 

 

 

 

 

 

 

 

Outstanding common shares

 

 

47,025,779

 

 

 

35,625,822

 

 

 

47,025,779

 

 

 

35,625,822

 

Tangible book value per common share

 

$

21.32

 

 

$

22.10

 

 

$

21.32

 

 

$

22.10

 

 

 

 

 

 

 

 

 

 

Sandy Spring Bancorp, Inc. and Subsidiaries

 

 

 

 

 

 

 

 

RECONCILIATION TABLE - UNAUDITED (CONTINUED)

 

 

 

 

 

 

 

 

OPERATING EARNINGS - METRICS

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

September 30,

 

September 30,

(Dollars in thousands)

 

 

2020

 

 

 

2019

 

 

 

2020

 

 

 

2019

 

Operating earnings (non-GAAP):

 

 

 

 

 

 

 

 

Net income

 

$

44,642

 

 

$

29,383

 

 

$

40,291

 

 

$

87,976

 

Plus non-GAAP adjustments:

 

 

 

 

 

 

 

 

Provision for credit losses - net of tax

 

 

5,140

 

 

 

1,133

 

 

 

67,132

 

 

 

2,255

 

Merger and acquisition expense - net of tax

 

 

919

 

 

 

271

 

 

 

18,742

 

 

 

271

 

PPPLF funding expense - net of tax

 

 

339

 

 

 

-

 

 

 

707

 

 

 

-

 

Less non-GAAP adjustment:

 

 

 

 

 

 

 

 

PPP interest income and net deferred fee - net of tax

 

 

5,226

 

 

 

-

 

 

 

9,709

 

 

 

-

 

Operating earnings (non-GAAP)

 

$

45,814

 

 

$

30,787

 

 

$

117,163

 

 

$

90,503

 

 

 

 

 

 

 

 

 

 

Operating earnings per common share (non-GAAP):

 

 

 

 

 

 

 

 

Weighted average common shares outstanding - diluted (GAAP)

 

 

47,175,071

 

 

 

35,671,721

 

 

 

43,070,672

 

 

 

35,642,556

 

 

 

 

 

 

 

 

 

 

Earnings per diluted common share (GAAP)

 

$

0.94

 

 

$

0.82

 

 

$

0.93

 

 

$

2.45

 

Operating earnings per diluted common share (non-GAAP)

 

$

0.97

 

 

$

0.86

 

 

$

2.72

 

 

$

2.54

 

 

 

 

 

 

 

 

 

 

Operating return on average assets (non-GAAP):

 

 

 

 

 

 

 

 

Average assets (GAAP)

 

$

12,835,893

 

 

$

8,370,789

 

 

$

11,483,477

 

 

$

8,307,929

 

Average PPP loans

 

 

1,058,792

 

 

 

-

 

 

 

592,500

 

 

 

-

 

Adjusted average assets (non-GAAP)

 

$

11,777,101

 

 

$

8,370,789

 

 

$

10,890,977

 

 

$

8,307,929

 

 

 

 

 

 

 

 

 

 

Return on average assets (GAAP)

 

 

1.38

%

 

 

1.39

%

 

 

0.47

%

 

 

1.42

%

Operating return on adjusted average assets (non-GAAP)

 

 

1.55

%

 

 

1.46

%

 

 

1.44

%

 

 

1.46

%

 

 

 

 

 

 

 

 

 

Operating return on average tangible common equity (non-GAAP)

 

 

 

 

 

 

 

Average total stockholders' equity (GAAP)

 

$

1,401,746

 

 

$

1,123,185

 

 

$

1,307,791

 

 

$

1,098,700

 

Average accumulated other comprehensive income/ (loss)

 

 

17,726

 

 

 

(2,837

)

 

 

9,623

 

 

 

(8,438

)

Average goodwill

 

 

370,548

 

 

 

347,149

 

 

 

363,906

 

 

 

347,149

 

Average other intangible assets, net

 

 

35,470

 

 

 

8,629

 

 

 

26,572

 

 

 

9,118

 

Average tangible common equity (non-GAAP)

 

$

978,002

 

 

$

770,244

 

 

$

907,690

 

 

$

750,871

 

 

 

 

 

 

 

 

 

 

Return on average tangible common equity (GAAP)

 

 

18.16

%

 

 

15.13

%

 

 

5.93

%

 

 

15.66

%

Operating return on average tangible common equity (non-GAAP)

 

 

18.64

%

 

 

15.86

%

 

 

17.24

%

 

 

16.11

%

 

 

 

 

 

 

 

 

 

Sandy Spring Bancorp, Inc. and Subsidiaries

 

 

 

 

 

 

CONDENSED CONSOLIDATED STATEMENTS OF CONDITION - UNAUDITED

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

December 31,

 

September 30,

(Dollars in thousands)

 

 

2020

 

 

 

2019

 

 

 

2019

 

Assets

 

 

 

 

 

 

Cash and due from banks

 

$

107,364

 

 

$

82,469

 

 

$

89,377

 

Federal funds sold

 

 

390

 

 

 

208

 

 

 

253

 

Interest-bearing deposits with banks

 

 

117,129

 

 

 

63,426

 

 

 

120,306

 

Cash and cash equivalents

 

 

224,883

 

 

 

146,103

 

 

 

209,936

 

Residential mortgage loans held for sale (at fair value)

 

 

88,728

 

 

 

53,701

 

 

 

78,821

 

Investments available-for-sale (at fair value)

 

 

1,357,205

 

 

 

1,073,333

 

 

 

894,272

 

Other equity securities

 

 

68,528

 

 

 

51,803

 

 

 

51,938

 

Total loans

 

 

10,333,935

 

 

 

6,705,232

 

 

 

6,596,548

 

Less: allowance for credit losses

 

 

(170,314

)

 

 

(56,132

)

 

 

(54,992

)

Net loans

 

 

10,163,621

 

 

 

6,649,100

 

 

 

6,541,556

 

Premises and equipment, net

 

 

58,738

 

 

 

58,615

 

 

 

59,487

 

Other real estate owned

 

 

1,389

 

 

 

1,482

 

 

 

1,482

 

Accrued interest receivable

 

 

48,176

 

 

 

23,282

 

 

 

23,438

 

Goodwill

 

 

370,549

 

 

 

347,149

 

 

 

347,149

 

Other intangible assets, net

 

 

34,175

 

 

 

7,841

 

 

 

8,322

 

Other assets

 

 

262,139

 

 

 

216,593

 

 

 

221,137

 

Total assets

 

$

12,678,131

 

 

$

8,629,002

 

 

$

8,437,538

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

Noninterest-bearing deposits

 

$

3,458,804

 

 

$

1,892,052

 

 

$

2,081,435

 

Interest-bearing deposits

 

 

6,506,165

 

 

 

4,548,267

 

 

 

4,412,464

 

Total deposits

 

 

9,964,969

 

 

 

6,440,319

 

 

 

6,493,899

 

Securities sold under retail repurchase agreements and federal funds purchased

 

 

462,706

 

 

 

213,605

Source : https://news.yahoo.com/sandy-spring-bancorp-reports-record-110000562.html

Here you can find information about how to track lost phone with imei number

Sandy Spring Bancorp Reports Record Quarterly Earnings of $44.6 Million
Sandy Spring Bancorp Inc (SASR) Q3 2020 Earnings Call Transcript
2019 Mexico Series - May
Opioid deaths in Oregon spiked 70% last spring
Sandy Spring Bancorp (SASR) CEO Daniel Schrider on Q3 2020 Results - Earnings Call Transcript
Wyatt Davis got his breakout season in 2019 and returned for one reason: An Ohio State football national title
Sarasota-Manatee housing sales through nine months surpass 2019 totals
Utah volleyball had one of top returning teams in country, but now patiently waits until spring
2019 Decorators' Show House proceeds to fund inclusive playground at Chestnut Ridge
Judge Denies Use Of 2019 George Floyd Arrest Video At Trial
[LIMITED STOCK!] Related eBay Products

    404: Not Found