Questions? +1 (202) 335-3939 Login
Trusted News Since 1995
A service for global professionals · Friday, March 29, 2024 · 699,606,913 Articles · 3+ Million Readers

Sandy Spring Bancorp Reports Net Income of $24.4 Million for the Second Quarter

Loan Growth Remains Strong and Dividends Increase to Record Levels

OLNEY, Md., July 19, 2018 (GLOBE NEWSWIRE) -- Today, Sandy Spring Bancorp, Inc., (Nasdaq:SASR), the parent company of Sandy Spring Bank, reported net income for the second quarter of 2018 of $24.4 million ($0.68 per diluted share) compared to net income of $14.7 million ($0.61 per diluted share) for the second quarter of 2017 and net income of $21.7 million ($0.61 per diluted share) for the first quarter of 2018.  The current quarter’s results included $2.2 million in merger expenses.  Exclusive of the after-tax impact of these expenses, earnings per diluted share would have been approximately $0.73 per share. 

The results of operations from the January 1, 2018, acquisition of WashingtonFirst Bankshares (“WashingtonFirst”) are included in the Company’s consolidated results of operations for the first six months of 2018.  The current period results reflect increased levels of average and period end balances, income and expense, versus comparable periods of 2017.  WashingtonFirst had assets of $2.1 billion, loans of $1.7 billion and deposits of $1.6 billion at the acquisition date.  The growth in interest income and expense from the prior year is the result of the growth in the balance sheet.  As a result of the synergies from the combination of the two institutions, additional operating cost savings are expected to be realized throughout 2018.

“Our robust loan growth continues to provide the Company with momentum. Strong capital levels and solid results generated by our core operating performance have enabled us to increase dividends to record levels,” said Daniel J. Schrider, President and Chief Executive Officer. “We continue to prove our ability to succeed in a highly competitive market, and we are well positioned to serve the growing needs of both individual clients and businesses of all sizes.”
  
Second Quarter Highlights: 

  • Total loans increased 51% compared to the second quarter of 2017, primarily as a result of the WashingtonFirst acquisition. Loan growth momentum remained strong as the loan portfolio grew 3% compared to the first quarter of 2018.
     
  • The net interest margin was 3.56% for the second quarter of 2018, compared to 3.60% for the second quarter of 2017 and 3.58% for the first quarter of 2018.  The prior year’s margin was positively impacted by an interest income recovery of $0.7 million.  Exclusive of this non-core item, the margin would have been 3.54%.
     
  • Second quarter results reflected an annualized return on average assets of 1.23% and annualized return on average equity of 9.66% as compared to 1.14% and 10.80% respectively for the second quarter of 2017.  Exclusive of merger costs on an after-tax basis, the return on average assets and return on average equity would have been 1.32% and 10.32%, respectively.

  • Pre-tax merger expenses recognized in the current quarter declined to $2.2 million compared to $9.0 million in the prior quarter.
     
  • The effective tax rate for the current quarter was 23.4% compared to 32.1% for the same quarter of the prior year and 23.6% for the prior quarter.
     
  • The Non-GAAP efficiency ratio was 52.98% for the current quarter as compared to 54.10% for the second quarter of 2017 and 49.54% for the first quarter of 2018.
     
  • The quarterly dividend increased 8% to $0.28 per share in the second quarter of 2018 from $0.26 per share in previous quarters.

Review of Balance Sheet and Credit Quality

At June 30, 2018, total assets amounted to $8.2 billion compared to $5.3 billion at June 30, 2017. The increase was primarily as a result of the WashingtonFirst acquisition. Total loans at June 30, 2018, were $6.3 billion compared to $4.1 billion at June 30, 2017.  Loan production continues to provide the source for asset growth as organic loans grew $256 million in the first six months of 2018. This loan growth is net of the sale of $60 million in loans out of the mortgage portfolio during the first quarter.

Tangible common equity totaled $690 million at June 30, 2018, compared to $472 million at June 30, 2017. The growth in intangible assets associated with the WashingtonFirst acquisition resulted in a decline in the ratio of tangible common equity to tangible assets to 8.85% at June 30, 2018, as compared to 9.10% at June 30, 2017.  The Company had a total risk-based capital ratio of 12.19%, a common equity tier 1 risk-based capital ratio of 10.85%, a tier 1 risk-based capital ratio of 11.01% and a tier 1 leverage ratio of 9.27% at June 30, 2018.

The ratio of non-performing loans to total loans decreased to 0.46% at June 30, 2018, compared to 0.78% at June 30, 2017, as a result of the growth in the loan portfolio.  Non-performing loans totaled $28.8 million at June 30, 2018, compared to $32.2 million at June 30, 2017, and $29.4 million at March 31, 2018. Non-performing loans include accruing loans 90 days or more past due and restructured loans, but exclude non-performing loans acquired in the WashingtonFirst acquisition.

Loan charge-offs, net of recoveries, totaled $0.2 million for the second quarter of 2018 compared to $0.1 million for the second quarter of 2017.  The allowance for loan losses represented 0.78% of outstanding loans and 168% of non-performing loans at June 30, 2018, compared to 1.09% of outstanding loans and 140% of non-performing loans at June 30, 2017. The decline in the ratio of the allowance for loan losses to outstanding loans ratio is the result of the accounting for credit losses on the loans acquired in the WashingtonFirst acquisition as any incurred credit losses have been embedded in the determination of the fair values of those loans. 

Income Statement Review

For the second quarter of 2018 net interest income increased 51% to $63.8 million compared to $42.3 million for the second quarter of 2017 as average loans from quarter to quarter increased 51% primarily as a result of the WashingtonFirst acquisition and, to a lesser extent, the Company’s organic loan growth during the period. The net interest margin for the current quarter was 3.56% compared to the net interest margin for the second quarter of 2017 of 3.60%.  The margin for the prior year’s quarter included $0.7 million from the full payoff of a previously acquired credit impaired loan.  Exclusive of the recovered interest income, the net interest margin would have been 3.54% based on an adjusted net interest income of $41.6 million.  Amortization of the fair value adjustments to both interest-earning assets and interest-bearing liabilities directly attributable to the acquisition had a 12 basis point positive effect on net interest margin for the current period. This favorable margin impact was offset by approximately 5 basis points as a result of the impact that the recent reduction in the tax rate had on tax-advantaged investments. 

The provision for loan losses was $1.7 million for the second quarter of 2018, compared to $1.3 million for the second quarter of 2017 and $2.0 million for the first quarter of 2018. The increase in the provision reflects the impact of organic loan production and the impact of acquired loans being refinanced as they reach maturity under the original lending arrangements during the second quarter of 2018.  

Non-interest income increased to $14.9 million for the second quarter of 2018, compared to $13.6 million for the second quarter of 2017.  The second quarter of 2017 included gains of $1.3 million on sales of investment securities. Excluding the gains, non-interest income increased 21% due primarily to the impact of increased mortgage banking activities and, to a lesser extent, income from wealth management activities and service charges on deposit accounts.

Non-interest expenses increased 37% to $45.1 million for the second quarter of 2018, compared to $32.9 million in the second quarter of 2017. The current quarter included $2.2 million in merger expenses and the second quarter of 2017 included $1.3 million in penalties on the early payoff of high-rate FHLB advances and $1.0 million in merger expenses. Excluding these transactions, non-interest expenses increased 40% compared to the second quarter of 2017 due to increased compensation and benefit costs and facility and operational expenses.  Merger expenses for the current quarter include the costs related to the consolidation of six redundant branches.  The non-GAAP efficiency ratio improved to 52.98% for the second quarter of 2018, compared to 54.10% for the second quarter of 2017, as a result of the growth in net interest income. 

Net interest income for the first six months of 2018 increased 53%, compared to the first six months of 2017, due the combination of the acquisition and organic loan growth. During the first six months of 2018, the net interest margin was 3.57% compared to 3.56% for the prior year period. The amortization of the fair value adjustments is estimated to be 12 basis points on an annual basis.  This favorable margin effect was partially offset by the impact that the recently enacted tax rate reduction had on the tax-advantaged securities in the investment portfolio which adversely affected the margin by 5 basis points.  Net interest income for the first six months of 2017 included the previously mentioned $0.7 million recovery of interest income.  Exclusive of this recovery, the net interest margin would have been 3.54%.    

The provision for loan losses was $3.7 million for the first six months of 2018, compared to $1.5 million for the first six months of 2017.   The increase in the provision reflects the organic growth in the loan portfolio year over year in addition to the impact of acquired loans being refinanced as they reach maturity under the original lending arrangements and ceased to be accounted for as acquired loans. 

Non-interest income was $32.0 million for the first six months of 2018, compared to $26.2 million for the first six months of 2017.  The first six months of 2017 included gains of $1.3 million on sales of investment securities.  Excluding these gains, non-interest income increased 28% compared to the prior year period primarily due to increases in mortgage banking activities, wealth management income and BOLI insurance proceeds.  Origination volume associated with the mortgage lending operations acquired as part of the WashingtonFirst acquisition contributed to significant growth in mortgage banking income for the first six months of 2018. 

Non-interest expenses increased 51% to $94.7 million for the first six months of 2018, compared to $62.8 million for the prior year period.  The increase in non-interest expense excluding merger expense was 35%.  The majority of the increase was in compensation, facility costs and other operational expenses resulting from increased size of the Company.  The non-GAAP efficiency ratio improved to 51.25% for the first six months of 2018 compared to 54.44% for the first six months of 2017 as a direct result of the growth in net interest income.

Explanation of Non-GAAP Financial Measures

Reported amounts are presented in accordance with generally accepted accounting principles in the United States (“GAAP”). The Company’s management uses supplemental non-GAAP financial measures in its analysis of the Company’s performance. These non-GAAP financial measures include: reported net income excluding intangible asset amortization, merger related expenses and the loss on the FHLB redemption from non-interest expense; non-interest income excluding securities gains (losses); and tax-equivalent net interest income, which adjusts the interest earned on tax-advantaged loans and tax-exempt investment securities to an amount comparable to interest subject to normal income taxes. Because the adjustments made to derive non-GAAP financial measures can vary from period to period, the Company’s management believes that the non-GAAP financial measures are useful in comparing period to period operating performance. Additionally, the Company believes this information is utilized by regulators and market analysts to evaluate a company’s financial condition and therefore, such information is useful to investors. 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 that may be presented by other companies. Please refer to Non-GAAP Reconciliation table included with this release.

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 Webcast of the conference call is available through the Investor Relations section of the Sandy Spring Website at www.sandyspringbank.com.  Participants may call 1-800-860-2442. 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) August 2, 2018.  A replay of the teleconference will be available through the same time period by calling 1-877-344-7529 under conference call number 10121776.

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. 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 

Media Contact:
Jen Schell
301-570-8331
jschell@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 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; 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, 2017, 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         Six Months Ended      
    June 30,   %     June 30,   %  
(Dollars in thousands, except per share data)     2018     2017   Change       2018     2017   Change  
Results of Operations:                            
Net interest income   $ 63,818   $ 42,326   51   %   $ 126,709   $ 82,579   53   %
Provision for loan losses     1,733     1,322   31         3,730     1,516   146    
Non-interest income     14,868     13,571   10         31,986     26,203   22    
Non-interest expenses     45,082     32,868   37         94,723     62,849   51    
Income before income taxes     31,871     21,707   47         60,242     44,417   36    
Net income     24,399     14,741   66         46,064     29,853   54    
                             
Pre-tax pre-provision income   $ 35,832   $ 24,016   49       $ 75,158   $ 46,920   60    
                             
Return on average assets     1.23 %   1.14 %         1.18 %   1.17 %    
Return on average common equity     9.66 %   10.80 %         9.18 %   11.12 %    
Net interest margin     3.56 %   3.60 %         3.57 %   3.56 %    
Efficiency ratio - GAAP basis  (1)     57.29 %   58.80 %         59.69 %   57.78 %    
Efficiency ratio - Non-GAAP basis  (1)     52.98 %   54.10 %         51.25 %   54.44 %    
                             
Per share data:                            
Basic net income   $ 0.68   $ 0.61   11   %   $ 1.29   $ 1.24   4   %
Diluted net income   $ 0.68   $ 0.61   11       $ 1.29   $ 1.23   5    
Average fully diluted shares     35,743,927     24,262,745   47         35,710,323     24,258,791   47    
Dividends declared per share   $ 0.28   $ 0.26   8       $ 0.54   $ 0.52   4    
Book value per share     28.90     23.13   25         28.90     23.13   25    
Tangible book value per share     19.42     19.68   (1 )       19.42     19.68   (1 )  
Outstanding shares     35,511,943     23,983,997   48         35,511,943     23,983,997   48    
                             
Financial Condition at period-end:                            
Investment securities   $ 1,017,274   $ 821,491   24   %   $ 1,017,274   $ 821,491   24   %
Loans     6,250,073     4,133,171   51         6,250,073     4,133,171   51    
Interest-earning assets     7,532,664     4,988,704   51         7,532,664     4,988,704   51    
Assets     8,152,600     5,270,521   55         8,152,600     5,270,521   55    
Deposits     5,837,826     3,885,445   50         5,837,826     3,885,445   50    
Interest-bearing liabilities     5,168,055     3,380,221   53         5,168,055     3,380,221   53    
Stockholders' equity     1,026,349     554,683   85         1,026,349     554,683   85    
                             
Capital ratios:                            
Tier 1 leverage  (4)     9.27 %   9.26 %         9.27 %   9.26 %    
Tier 1 capital to risk-weighted assets  (4)     11.01 %   10.96 %         11.01 %   10.96 %    
Total regulatory capital to risk-weighted assets  (4)     12.19 %   12.00 %         12.19 %   12.00 %    
Common equity tier 1 capital to risk-weighted assets  (4)     10.85 %   10.96 %         10.85 %   10.96 %    
Tangible common equity to tangible assets  (2)     8.85 %   9.10 %         8.85 %   9.10 %    
Average equity to average assets     12.78 %   10.52 %         12.83 %   10.50 %    
                             
Credit quality ratios:                            
Allowance for loan losses to loans     0.78 %   1.09 %         0.78 %   1.09 %    
Non-performing loans to total loans     0.46 %   0.78 %         0.46 %   0.78 %    
Non-performing assets to total assets     0.38 %   0.64 %         0.38 %   0.64 %    
Allowance for loan losses to non-performing loans     168.17 %   140.00 %         168.17 %   140.00 %    
Annualized net charge-offs to average loans  (3)     0.01 %   0.01 %         0.02 %   0.03 %    
                             
(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, merger expenses and loss on FHLB redemption from non-interest expense;  
securities gains (losses) from non-interest income and adds 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, excluding residential mortgage loans held-for-sale.  
(4) Estimated ratio at June 30, 2018  


Sandy Spring Bancorp, Inc. and Subsidiaries                
RECONCILIATION TABLE - UNAUDITED                
                 
    Three Months Ended   Six Months Ended
    June 30,   June 30,
(Dollars in thousands)     2018       2017       2018       2017  
Pre-tax pre-provision income:                
Net income   $ 24,399     $ 14,741     $ 46,064     $ 29,853  
Plus non-GAAP adjustments:                
Merger expenses     2,228       987       11,186       987  
Income taxes     7,472       6,966       14,178       14,564  
Provision for loan losses     1,733       1,322       3,730       1,516  
Pre-tax pre-provision income   $ 35,832     $ 24,016     $ 75,158     $ 46,920  
                 
Efficiency ratio - GAAP basis:                
Non-interest expenses   $ 45,082     $ 32,868     $ 94,723     $ 62,849  
                 
Net interest income plus non-interest income   $ 78,686     $ 55,897     $ 158,695     $ 108,782  
                 
Efficiency ratio - GAAP basis     57.29 %     58.80 %     59.69 %     57.78 %
                 
                 
Efficiency ratio - Non-GAAP basis:                
Non-interest expenses   $ 45,082     $ 32,868     $ 94,723     $ 62,849  
Less non-GAAP adjustments:                
Amortization of intangible assets     541       25       1,082       51  
Loss on FHLB Redemption     -       1,275       -       1,275  
Merger expenses     2,228       987       11,186       987  
Non-interest expenses -  as adjusted   $ 42,313     $ 30,581     $ 82,455     $ 60,536  
                 
Net interest income plus non-interest income   $ 78,686     $ 55,897     $ 158,695     $ 108,782  
Plus non-GAAP adjustment:                
Tax-equivalent income     1,177       1,901       2,262       3,697  
Less non-GAAP adjustment:                
Securities gains     -       1,273       63       1,275  
Net interest income plus non-interest income - as adjusted   $ 79,863     $ 56,525     $ 160,894     $ 111,204  
                 
Efficiency ratio - Non-GAAP basis     52.98%       54.10%       51.25%       54.44%  
                 
Supplemental Non-GAAP Performance Measurements:                
Net income - GAAP   $ 24,399     $ 14,741     $ 46,064     $ 29,853  
Plus non-GAAP adjustment:                
Merger expenses - net of tax     1,646       593       8,263       593  
Less non-GAAP adjustment:                
Acquisition fair value marks - net of tax     1,631       22       3,278       47  
Net income - Non-GAAP   $ 24,414     $ 15,312     $ 51,049     $ 30,399  
                 
Diluted net income per share - Non-GAAP   $ 0.68     $ 0.63     $ 1.43     $ 1.25  
Return on average assets - Non-GAAP     1.24%       1.18%       1.31%       1.19%  
Return on average common equity - Non-GAAP     9.67%       11.22%       10.18%       11.32%  
                 
Tangible common equity ratio:                
Total stockholders' equity   $ 1,026,349     $ 554,683     $ 1,026,349     $ 554,683  
Accumulated other comprehensive income     20,556       3,712       20,556       3,712  
Goodwill     (346,312 )     (85,768 )     (346,312 )     (85,768 )
Other intangible assets, net     (10,868 )     (629 )     (10,868 )     (629 )
Tangible common equity   $ 689,725     $ 471,998     $ 689,725     $ 471,998  
                 
Total assets   $ 8,152,600     $ 5,270,521     $ 8,152,600     $ 5,270,521  
Goodwill     (346,312 )     (85,768 )     (346,312 )     (85,768 )
Other intangible assets, net     (10,868 )     (629 )     (10,868 )     (629 )
Tangible assets   $ 7,795,420     $ 5,184,124     $ 7,795,420     $ 5,184,124  
                 
Tangible common equity ratio     8.85%       9.10%       8.85%       9.10%  
                 
Outstanding common shares     35,511,943       23,983,997       35,511,943       23,983,997  
Tangible book value per common share   $ 19.42     $ 19.68     $ 19.42     $ 19.68  


Sandy Spring Bancorp, Inc. and Subsidiaries              
CONDENSED CONSOLIDATED STATEMENTS OF CONDITION  - UNAUDITED              
               
    June 30,   December 31,   June 30,  
(Dollars in thousands)     2018       2017       2017    
Assets              
Cash and due from banks   $ 69,451     $ 55,693     $ 48,637    
Federal funds sold     1,434       2,845       2,831    
Interest-bearing deposits with banks     223,883       53,962       25,468    
Cash and cash equivalents     294,768       112,500       76,936    
Residential mortgage loans held for sale (at fair value)     40,000       9,848       5,743    
Investments available-for-sale (at fair value)     942,832       729,507       780,078    
Other equity securities     74,442       45,518       41,413    
Total loans     6,250,073       4,314,248       4,133,171    
Less: allowance for loan losses     (48,493 )     (45,257 )     (45,079 )  
Net loans     6,201,580       4,268,991       4,088,092    
Premises and equipment, net     62,275       54,761       53,235    
Other real estate owned     2,361       2,253       1,460    
Accrued interest receivable     23,197       15,480       14,910    
Goodwill     346,312       85,768       85,768    
Other intangible assets, net     10,868       580       629    
Other assets     153,965       121,469       122,257    
Total assets   $ 8,152,600     $ 5,446,675     $ 5,270,521    
               
Liabilities              
Noninterest-bearing deposits   $ 1,910,690     $ 1,264,392     $ 1,302,536    
Interest-bearing deposits     3,927,136       2,699,270       2,582,909    
Total deposits     5,837,826       3,963,662       3,885,445    
Securities sold under retail repurchase agreements and federal funds purchased     139,647       119,359       127,312    
Advances from FHLB     1,063,777       765,833       670,000    
Subordinated debentures     37,495       -       -    
Accrued interest payable and other liabilities     47,506       34,005       33,081    
Total liabilities     7,126,251       4,882,859       4,715,838    
               
Stockholders' Equity              
Common stock -- par value $1.00; shares authorized 100,000,000; shares issued and outstanding 35,511,943,              
23,996,293 and 23,983,997 at June 30, 2018, December 31, 2017 and June 30, 2017, respectively     35,512       23,996       23,984    
Additional paid in capital     604,631       168,188       166,705    
Retained earnings     406,762       378,489       367,706    
Accumulated other comprehensive loss     (20,556 )     (6,857 )     (3,712 )  
Total stockholders' equity     1,026,349       563,816       554,683    
Total liabilities and stockholders' equity   $ 8,152,600     $ 5,446,675     $ 5,270,521    
               


Sandy Spring Bancorp, Inc. and Subsidiaries                
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED              
                 
    Three Months Ended   Six Months Ended
    June 30, June 30,
(Dollars in thousands, except per share data)     2018     2017     2018     2017
Interest Income:                
Interest and fees on loans   $ 70,672   $ 42,747   $ 138,264   $ 82,970
Interest on loans held for sale     279     72     647     154
Interest on deposits with banks     514     91     871     181
Interest and dividends on investment securities:                
Taxable     5,083     3,554     10,185     7,162
Exempt from federal income taxes     2,042     2,106     4,114     4,057
Interest on federal funds sold     7     6     20     10
Total interest income     78,597     48,576     154,101     94,534
Interest Expense:                
Interest on deposits     8,851     3,023     15,810     5,511
Interest on retail repurchase agreements and federal funds purchased     108     79     216     155
Interest on advances from FHLB     5,338     3,148     10,416     6,277
Interest on subordinated debt     482     -     950     12
Total interest expense     14,779     6,250     27,392     11,955
Net interest income     63,818     42,326     126,709     82,579
Provision for loan losses     1,733     1,322     3,730     1,516
Net interest income after provision for loan losses     62,085     41,004     122,979     81,063
Non-interest Income:                
Investment securities gains     -     1,273     63     1,275
Service charges on deposit accounts     2,290     2,017     4,549     3,981
Mortgage banking activities     2,064     840     4,271     1,448
Wealth management income     5,387     4,744     10,448     9,228
Insurance agency commissions     1,180     1,222     3,004     2,974
Income from bank owned life insurance     670     605     3,001     1,199
Bank card fees     1,393     1,253     2,763     2,398
Other income     1,884     1,617     3,887     3,700
Total non-interest income     14,868     13,571     31,986     26,203
Non-interest Expenses:                
Salaries and employee benefits     24,664     18,282     48,576     36,083
Occupancy expense of premises     4,642     3,211     9,584     6,613
Equipment expenses     2,243     1,767     4,468     3,491
Marketing     945     776     2,093     1,439
Outside data services     1,707     1,367     3,104     2,759
FDIC insurance     1,390     823     2,583     1,628
Amortization of intangible assets     541     25     1,082     51
Merger expenses     2,228     987     11,186     987
Other expenses     6,722     5,630     12,047     9,798
Total non-interest expenses     45,082     32,868     94,723     62,849
Income before income taxes     31,871     21,707     60,242     44,417
Income tax expense     7,472     6,966     14,178     14,564
Net income   $ 24,399   $ 14,741   $ 46,064   $ 29,853
                 
Net Income Per Share Amounts:                
Basic net income per share   $ 0.68   $ 0.61   $ 1.29   $ 1.24
Diluted net income per share   $ 0.68   $ 0.61   $ 1.29   $ 1.23
Dividends declared per share   $ 0.28   $ 0.26   $ 0.54   $ 0.52


Sandy Spring Bancorp, Inc. and Subsidiaries                          
HISTORICAL TRENDS - QUARTERLY FINANCIAL DATA - UNAUDITED                      
                           
      2018       2017    
(Dollars in thousands, except per share data)   Q2   Q1   Q4   Q3   Q2   Q1  
Profitability for the Quarter:                          
Tax-equivalent interest income   $ 79,774     $ 76,589     $ 52,550     $ 51,477     $ 50,477     $ 47,754    
Interest expense     14,779       12,613       7,184       6,892       6,250       5,705    
Tax-equivalent net interest income     64,995       63,976       45,366       44,585       44,227       42,049    
Tax-equivalent adjustment     1,177       1,085       1,874       1,888       1,901       1,796    
Provision for loan losses     1,733       1,997       527       934       1,322       194    
Non-interest income     14,868       17,118       12,294       12,746       13,571       12,632    
Non-interest expenses     45,082       49,641       35,059       31,191       32,868       29,981    
Income before income taxes     31,871       28,371       20,200       23,318       21,707       22,710    
Income tax expense     7,472       6,706       11,933       8,229       6,966       7,598    
Net income   $ 24,399     $ 21,665     $ 8,267     $ 15,089     $ 14,741     $ 15,112    
Financial Performance:                          
Pre-tax pre-provision income   $ 35,832     $ 39,326     $ 23,647     $ 24,597     $ 24,016     $ 22,904    
Return on average assets     1.23%       1.12%       0.61%       1.13%       1.14%       1.20%    
Return on average common equity     9.66%       8.70%       5.82%       10.74%       10.80%       11.45%    
Net interest margin     3.56%       3.58%       3.57%       3.54%       3.60%       3.51%    
Efficiency ratio - GAAP basis (1)     57.29%       62.04%       62.85%       56.26%       58.80%       56.69%    
Efficiency ratio - Non-GAAP basis (1)     52.98%       49.54%       55.69%       53.76%       54.10%       54.78%    
Per Share Data:                          
Basic net income per share   $ 0.68     $ 0.61     $ 0.34     $ 0.62     $ 0.61     $ 0.63    
Diluted net income per share   $ 0.68     $ 0.61     $ 0.34     $ 0.62     $ 0.61     $ 0.63    
Average fully diluted shares     35,743,927       35,683,542       24,228,471       24,223,004       24,262,745       24,158,566    
Dividends declared per common share   $ 0.28     $ 0.26     $ 0.26     $ 0.26     $ 0.26     $ 0.26    
Non-interest Income:                          
Securities gains (losses)   $ -     $ 63     $ (2 )   $ -     $ 1,273     $ 2    
Service charges on deposit accounts     2,290       2,259       2,177       2,140       2,017       1,964    
Mortgage banking activities     2,064       2,207       654       632       840       608    
Wealth management income     5,387       5,061       5,054       4,864       4,744       4,484    
Insurance agency commissions     1,180       1,824       1,307       1,950       1,222       1,752    
Income from bank owned life insurance     670       2,331       595       609       605       594    
Bank card fees     1,393       1,370       1,218       1,211       1,253       1,145    
Other income     1,884       2,003       1,291       1,340       1,617       2,083    
Total Non-interest Income   $ 14,868     $ 17,118     $ 12,294     $ 12,746     $ 13,571     $ 12,632    
Non-interest Expense:                          
Salaries and employee benefits   $ 24,664     $ 23,912     $ 18,607     $ 18,442     $ 18,282     $ 17,801    
Occupancy expense of premises     4,642       4,942       3,146       3,294       3,211       3,402    
Equipment expenses     2,243       2,225       1,802       1,722       1,767       1,724    
Marketing     945       1,148       896       784       776       663    
Outside data services     1,707       1,397       1,441       1,286       1,367       1,392    
FDIC insurance     1,390       1,193       827       850       823       805    
Amortization of intangible assets     541       541       25       25       25       26    
Merger expenses     2,228       8,958       2,920       345       987       -    
Professional fees     1,699       1,040       1,439       1,053       1,045       955    
Other real estate owned expenses     41       38       14       4       (6 )     5    
Other expenses     4,982       4,247       3,942       3,386       4,591       3,208    
Total Non-interest Expense   $ 45,082     $ 49,641     $ 35,059     $ 31,191     $ 32,868     $ 29,981    
                           
(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, merger expenses and loss on FHLB redemption from non-interest expense;  
securities gains (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                    
                         
      2018       2017  
(Dollars in thousands)   Q2   Q1   Q4   Q3   Q2   Q1
Balance Sheets at Quarter End:                        
Residential mortgage loans   $ 1,106,674     $ 992,287     $ 921,435     $ 882,890     $ 871,766     $ 848,814  
Residential construction loans     197,372       215,445       176,687       171,814       169,901       170,285  
Commercial AD&C loans     609,266       564,871       292,443       295,222       314,259       309,350  
Commercial investor real estate loans     1,923,827       1,928,439       1,112,710       1,104,669       1,069,988       979,410  
Commercial owner occupied real estate loans     1,184,421       1,174,739       857,196       831,461       797,629       772,443  
Commercial business loans     702,939       652,797       497,948       451,667       451,570       457,216  
Consumer loans     525,574       532,973       455,829       456,395       458,058       455,478  
Total loans     6,250,073       6,061,551       4,314,248       4,194,118       4,133,171       3,992,996  
Allowance for loan losses     (48,493 )     (46,931 )     (45,257 )     (44,924 )     (45,079 )     (43,861 )
Loans held for sale     40,000       28,486       9,848       7,084       5,743       17,717  
Investment securities     1,017,274       1,040,339       775,025       795,922       821,491       855,707  
Interest-earning assets     7,532,664       7,285,731       5,155,928       5,049,229       4,988,704       4,919,927  
Total assets     8,152,600       7,894,918       5,446,675       5,334,788       5,270,521       5,201,164  
Noninterest-bearing demand deposits     1,910,690       1,767,523       1,264,392       1,312,710       1,302,536       1,234,505  
Total deposits     5,837,826       5,627,206       3,963,662       3,955,792       3,885,445       3,799,198  
Customer repurchase agreements     139,647       149,323       119,359       146,569       127,312       141,244  
Total interest-bearing liabilities     5,168,055       5,057,645       3,584,462       3,422,568       3,380,221       3,380,937  
Total stockholders' equity     1,026,349       1,014,608       563,816       564,480       554,683       544,261  
Quarterly Average Balance Sheets:                        
Residential mortgage loans   $ 1,034,062     $ 1,117,478     $ 903,660     $ 880,782     $ 860,081     $ 847,896  
Residential construction loans     223,171       193,327       171,239       172,921       169,130       157,152  
Commercial AD&C loans     576,076       582,876       289,737       291,569       302,924       310,325  
Commercial investor real estate loans     1,924,759       1,988,340       1,114,960       1,090,641       1,010,389       945,080  
Commercial owner occupied real estate loans     1,184,409       940,065       842,642       808,802       776,279       774,964  
Commercial business loans     666,280       657,372       454,330       459,779       454,724       462,444  
Consumer loans     531,965       538,198       458,378       457,526       461,672       458,162  
Total loans     6,140,722       6,017,656       4,234,946       4,162,020       4,035,199       3,956,023  
Loans held for sale     25,403       35,768       5,862       7,093       7,077       7,402  
Investment securities     1,028,306       1,062,325       780,522       813,179       842,837       818,287  
Interest-earning assets     7,311,272       7,212,878       5,061,075       5,019,133       4,922,389       4,829,208  
Total assets     7,926,735       7,841,611       5,346,625       5,297,368       5,202,398       5,111,698  
Noninterest-bearing demand deposits     1,796,644       1,651,258       1,322,157       1,293,470       1,251,396       1,159,715  
Total deposits     5,657,420       5,489,715       3,991,936       3,916,657       3,810,180       3,673,731  
Customer repurchase agreements     148,539       136,694       139,125       133,145       132,552       128,485  
Total interest-bearing liabilities     5,058,016       5,116,904       3,419,669       3,407,279       3,360,128       3,375,002  
Total stockholders' equity     1,013,081       1,010,106       563,506       557,282       547,229       535,308  
Financial Measures:                        
Average equity to average assets     12.78%       12.88%       10.54%       10.52%       10.52%       10.47%  
Investment securities to earning assets     13.50%       14.28%       15.03%       15.76%       16.47%       17.39%  
Loans to earning assets     82.97%       83.20%       83.68%       83.06%       82.85%       81.16%  
Loans to assets     76.66%       76.78%       79.21%       78.62%       78.42%       76.77%  
Loans to deposits     107.06%       107.72%       108.85%       106.02%       106.38%       105.10%  
Capital Measures:                        
Tier 1 leverage  (1)     9.27%       9.21%       9.24%       9.28%       9.26%       9.26%  
Tier 1 capital to risk-weighted assets  (1)     11.01%       11.08%       10.84%       10.99%       10.96%       11.02%  
Total regulatory capital to risk-weighted assets  (1)     12.19%       12.27%       11.85%       12.01%       12.00%       12.06%  
Common equity tier 1 capital to risk-weighted assets  (1)     10.85%       10.92%       10.84%       10.99%       10.96%       11.02%  
Book value per share   $ 28.90     $ 28.61     $ 23.50     $ 23.53     $ 23.13     $ 22.74  
Outstanding shares     35,511,943       35,463,269       23,996,293       23,990,370       23,983,997       23,930,165  
(1) Estimated ratio at June 30, 2018                        


Sandy Spring Bancorp, Inc. and Subsidiaries                        
LOAN PORTFOLIO QUALITY DETAIL - UNAUDITED                      
                         
      2018       2017  
(Dollars in thousands)   June 30,   March 31,   December 31,   September 30,   June 30,   March 31,
Non-Performing Assets:                        
Loans 90 days past due:                        
Commercial business   $ 6     $ -     $ -     $ -     $ -     $ -  
Commercial real estate:                        
Commercial AD&C     -       -       -       -       -       -  
Commercial investor real estate     -       -       -       -       -       -  
Commercial owner occupied real estate     112       -       -       -       424       -  
Consumer     -       126       -       1       4       -  
Residential real estate:                        
Residential mortgage     -       -       225       225       -       232  
Residential construction     -       -       -       -       -       -  
Total loans 90 days past due     118       126       225       226       428       232  
Non-accrual loans:                        
Commercial business     6,883       6,634       6,703       6,091       6,807       4,849  
Commercial real estate:                        
Commercial AD&C     136       136       136       137       137       137  
Commercial investor real estate     5,878       5,813       5,575       5,589       6,934       7,970  
Commercial owner occupied real estate     3,440       3,524       3,582       5,012       4,926       5,106  
Consumer     4,298       3,244       2,967       3,152       3,111       3,058  
Residential real estate:                        
Residential mortgage     6,251       7,063       7,196       7,345       7,101       6,908  
Residential construction     168       174       177       182       187       189  
Total non-accrual loans     27,054       26,588       26,336       27,508       29,203       28,217  
Total restructured loans - accruing     1,663       2,678       2,788       2,471       2,569       2,409  
Total non-performing loans     28,835       29,392       29,349       30,205       32,200       30,858  
Other assets and real estate owned (OREO)     2,361       2,761       2,253       1,448       1,460       1,294  
Total non-performing assets   $ 31,196     $ 32,153     $ 31,602     $ 31,653     $ 33,660     $ 32,152  
                         
    For the Quarter Ended,
    June 30,   March 31,   December 31,   September 30,   June 30,   March 31,
(Dollars in thousands)     2018       2018       2017       2017       2017       2017  
Analysis of Non-accrual Loan Activity:                        
Balance at beginning of period   $ 26,588     $ 26,336     $ 27,508     $ 29,203     $ 28,217     $ 29,211  
Non-accrual balances transferred to OREO     -       (289 )     (888 )     (411 )     (175 )     (113 )
Non-accrual balances charged-off     (144 )     (411 )     (446 )     (1,127 )     (179 )     (391 )
Net payments or draws     (1,635 )     (357 )     (1,707 )     (1,869 )     (1,804 )     (1,382 )
Loans placed on non-accrual     2,245       1,309       2,504       1,712       3,144       1,461  
Non-accrual loans brought current     -       -       (635 )     -       -       (569 )
Balance at end of period   $ 27,054     $ 26,588     $ 26,336     $ 27,508     $ 29,203     $ 28,217  
                         
Analysis of Allowance for Loan Losses:                        
Balance at beginning of period   $ 46,931     $ 45,257     $ 44,924     $ 45,079     $ 43,861     $ 44,067  
Provision for loan losses     1,733       1,997       527       934       1,322       194  
Less loans charged-off, net of recoveries:                        
Commercial business     (73 )     322       48       1,029       107       260  
Commercial real estate:                        
Commercial AD&C     -       (62 )     -       -       (103 )     -  
Commercial investor real estate     (8 )     (8 )     (8 )     (10 )     (78 )     (5 )
Commercial owner occupied real estate     -       -       243       5       -       -  
Consumer     244       99       (71 )     103       189       167  
Residential real estate:                        
Residential mortgage     13       (22 )     (12 )     (32 )     (3 )     (16 )
Residential construction     (5 )     (6 )     (6 )     (6 )     (8 )     (6 )
Net charge-offs     171       323       194       1,089       104       400  
Balance at end of period   $ 48,493     $ 46,931     $ 45,257     $ 44,924     $ 45,079     $ 43,861  
                         
Asset Quality Ratios:                        
Non-performing loans to total loans     0.46%       0.48%       0.68%       0.72%       0.78%       0.77%  
Non-performing assets to total assets     0.38%       0.41%       0.58%       0.59%       0.64%       0.62%  
Allowance for loan losses to loans     0.78%       0.77%       1.05%       1.07%       1.09%       1.10%  
Allowance for loan losses to non-performing loans     168.17%       159.67%       154.20%       148.73%       140.00%       142.14%  
Annualized net charge-offs to average loans     0.01%       0.02%       0.02%       0.10%       0.01%       0.04%  


Sandy Spring Bancorp, Inc. and Subsidiaries                              
CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES - UNAUDITED                          
                               
    Three Months Ended June 30,    
          2018                 2017          
            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   $ 1,034,062     $ 9,414     3.64 %   $ 860,081     $ 7,531     3.50 %  
Residential construction loans     223,171       2,199     3.95       169,130       1,579     3.74    
Total mortgage loans     1,257,233       11,613     3.70       1,029,211       9,110     3.54    
Commercial AD&C loans     576,076       8,271     5.76       302,924       3,767     4.99    
Commercial investor real estate loans     1,924,759       22,661     4.72       1,010,389       11,280     4.48    
Commercial owner occupied real estate loans     1,184,409       13,989     4.74       776,279       9,981     5.16    
Commercial business loans     666,280       8,807     5.30       454,724       5,062     4.46    
Total commercial loans     4,351,524       53,728     4.95       2,544,316       30,090     4.74    
Consumer loans     531,965       5,753     4.40       461,672       4,171     3.66    
Total loans (2)     6,140,722       71,094     4.64       4,035,199       43,371     4.31    
Loans held for sale     25,403       279     4.39       7,077       72     4.09    
Taxable securities     734,482       5,282     2.88       535,028       3,678     2.75    
Tax-exempt securities (3)     293,824       2,598     3.54       307,809       3,259     4.23    
Total investment securities     1,028,306       7,880     3.06       842,837       6,937     3.29    
Interest-bearing deposits with banks     114,869       514     1.79       34,738       91     1.06    
Federal funds sold     1,972       7     1.44       2,538       6     0.96    
Total interest-earning assets     7,311,272       79,774     4.37       4,922,389       50,477     4.11    
                               
Less:  allowance for loan losses     (47,694 )               (43,679 )            
Cash and due from banks     66,420                 47,517              
Premises and equipment, net     61,900                 53,449              
Other assets     534,837                 222,722              
Total assets   $ 7,926,735               $ 5,202,398              
                               
Liabilities and Stockholders' Equity                              
Interest-bearing demand deposits   $ 729,948       222     0.12 %   $ 615,141       123     0.08 %  
Regular savings deposits     356,077       94     0.11       325,634       57     0.07    
Money market savings deposits     1,554,304       4,571     1.18       983,185       1,076     0.44    
Time deposits     1,220,447       3,964     1.30       634,824       1,767     1.12    
Total interest-bearing deposits     3,860,776       8,851     0.92       2,558,784       3,023     0.47    
Other borrowings     148,542       108     0.29       132,553       79     0.24    
Advances from FHLB     1,011,180       5,338     2.12       668,791       3,148     1.89    
Subordinated debentures     37,518       482     5.14       -       -     -    
Total interest-bearing liabilities     5,058,016       14,779     1.17       3,360,128       6,250     0.75    
                               
Noninterest-bearing demand deposits     1,796,644                 1,251,396              
Other liabilities     58,994                 43,645              
Stockholders' equity     1,013,081                 547,229              
Total liabilities and stockholders' equity   $ 7,926,735               $ 5,202,398              
                               
Net interest income and spread       $ 64,995     3.20 %       $ 44,227     3.36 %  
Less: tax-equivalent adjustment         1,177                 1,901          
Net interest income       $ 63,818               $ 42,326          
                               
Interest income/earning assets           4.37 %           4.11 %  
Interest expense/earning assets           0.81             0.51    
Net interest margin           3.56 %           3.60 %  
                               
(1) Tax-equivalent income has been adjusted using the combined marginal federal and state rate of 26.13% and 39.88% for 2018 and 2017, respectively. The annualized taxable-equivalent adjustments utilized in    
the above table to compute yields aggregated to $1.2 million and $1.9 million in 2018 and 2017, respectively.    
(2) Non-accrual loans are included in the average balances.    
(3) Includes only investments that are exempt from federal taxes.    


Sandy Spring Bancorp, Inc. and Subsidiaries                              
CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES - UNAUDITED                      
                               
    Six Months Ended June 30,    
          2018                 2017          
            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   $ 1,075,540     $ 19,795     3.68 %   $ 854,022     $ 14,879     3.48 %  
Residential construction loans     208,332       4,043     3.91       163,174       3,015     3.73    
Total mortgage loans     1,283,872       23,838     3.72       1,017,196       17,894     3.52    
Commercial AD&C loans     579,458       16,407     5.71       306,604       7,421     4.88    
Commercial investor real estate loans     1,956,374       46,089     4.75       977,915       21,699     4.47    
Commercial owner occupied real estate loans     1,062,912       24,567     4.66       775,625       19,009     4.94    
Commercial business loans     661,851       16,856     5.14       458,563       10,069     4.43    
Total commercial loans     4,260,595       103,919     4.92       2,518,707       58,198     4.66    
Consumer loans     535,064       11,299     4.32       459,927       8,101     3.58    
Total loans (2)     6,079,531       139,056     4.61       3,995,830       84,193     4.24    
Loans held for sale     30,557       647     4.24       7,238       154     4.27    
Taxable securities     747,862       10,549     2.82       534,306       7,413     2.78    
Tax-exempt securities (3)     297,359       5,220     3.51       296,323       6,280     4.24    
Total investment securities     1,045,221       15,769     3.02       830,629       13,693     3.30    
Interest-bearing deposits with banks     104,115       871     1.69       40,038       181     0.91    
Federal funds sold     2,925       20     1.36       2,320       10     0.84    
Total interest-earning assets     7,262,349       156,363     4.33       4,876,055       98,231     4.05    
                               
Less:  allowance for loan losses     (46,689 )               (43,703 )            
Cash and due from banks     71,664                 48,165              
Premises and equipment, net     61,027                 53,548              
Other assets     535,844                 223,228              
Total assets   $ 7,884,195               $ 5,157,293              
                               
Liabilities and Stockholders' Equity                              
Interest-bearing demand deposits   $ 744,048       426     0.12 %   $ 612,608       237     0.08 %  
Regular savings deposits     412,053       395     0.19       320,577       106     0.07    
Money market savings deposits     1,467,823       7,698     1.06       986,625       1,854     0.38    
Time deposits     1,225,755       7,291     1.20       616,713       3,314     1.08    
Total interest-bearing deposits     3,849,679       15,810     0.83       2,536,523       5,511     0.44    
Other borrowings     144,100       216     0.30       130,531       155     0.24    
Advances from FHLB     1,055,982       10,416     1.99       699,641       6,277     1.81    
Subordinated debentures     37,536       950     5.07       829       12     2.91    
Total interest-bearing liabilities     5,087,297       27,392     1.09       3,367,524       11,955     0.72    
                               
Noninterest-bearing demand deposits     1,724,353                 1,205,809              
Other liabilities     60,943                 42,659              
Stockholders' equity     1,011,602                 541,301              
Total liabilities and stockholders' equity   $ 7,884,195               $ 5,157,293              
                               
Net interest income and spread       $ 128,971     3.24 %       $ 86,276     3.33 %  
Less: tax-equivalent adjustment         2,262                 3,697          
Net interest income       $ 126,709               $ 82,579          
                               
Interest income/earning assets           4.33 %           4.05 %  
Interest expense/earning assets           0.76             0.49    
Net interest margin           3.57 %           3.56 %  
                               
(1) Tax-equivalent income has been adjusted using the combined marginal federal and state rate of 26.13% and 39.88% for 2018 and 2017, respectively. The annualized taxable-equivalent adjustments utilized in    
the above table to compute yields aggregated to $2.3 million and $3.7 million in 2018 and 2017, respectively.    
(2) Non-accrual loans are included in the average balances.    
(3) Includes only investments that are exempt from federal taxes.    


Primary Logo

Powered by EIN News


EIN Presswire does not exercise editorial control over third-party content provided, uploaded, published, or distributed by users of EIN Presswire. We are a distributor, not a publisher, of 3rd party content. Such content may contain the views, opinions, statements, offers, and other material of the respective users, suppliers, participants, or authors.

Submit your press release