Sandy Spring Bancorp, Inc. (SASR) Bundle
A Brief History of Sandy Spring Bancorp, Inc.
Sandy Spring Bancorp, Inc. (NASDAQ: SASR) has experienced significant growth and development over the years. As of September 30, 2024, the company reported total assets of $14.4 billion, a 3% increase from $14.0 billion at June 30, 2024 . The total loans remained stable at $11.5 billion during the same period .
Financial Performance
In the third quarter of 2024, Sandy Spring Bancorp recorded a net income of $16.2 million or $0.36 per diluted share, compared to $22.8 million or $0.51 per diluted share in the previous quarter and $20.7 million or $0.46 per diluted share in the third quarter of 2023 . The company's core earnings for the same quarter were $17.9 million or $0.40 per diluted share, reflecting a decrease from $24.4 million in the preceding quarter .
Interest Income and Expense
Net interest income for the third quarter of 2024 increased by $1.1 million or 1% compared to the previous quarter, totaling $81.4 million . However, it decreased by $3.7 million or 4% compared to the same quarter in 2023 . Interest income rose to $171.2 million, while interest expense increased to $88.7 million .
Provision for Credit Losses
The provision for credit losses for the third quarter of 2024 was $6.3 million, significantly higher than $1.0 million in the previous quarter and $2.4 million in the third quarter of 2023 . This increase was primarily due to higher reserves on collateral-dependent non-accrual loans .
Balance Sheet Highlights
As of September 30, 2024, the allowance for credit losses stood at $131.4 million, which is 1.14% of outstanding loans . The non-performing loans ratio was 1.09%, compared to 0.81% at June 30, 2024 . Total deposits increased by $397.5 million or 4% to $11.7 billion .
Non-Interest Income and Expenses
Non-interest income for the third quarter of 2024 totaled $19.7 million, marking a 13% increase compared to the prior year quarter . Non-interest expenses rose to $72.9 million, primarily driven by higher salaries and benefits .
| Financial Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Income | $16.2 million | $22.8 million | $20.7 million |
| Core Earnings | $17.9 million | $24.4 million | $27.8 million |
| Net Interest Income | $81.4 million | $80.3 million | $85.1 million |
| Provision for Credit Losses | $6.3 million | $1.0 million | $2.4 million |
| Non-Interest Income | $19.7 million | $19.6 million | $17.4 million |
| Total Deposits | $11.7 billion | $11.3 billion | $10.5 billion |
At September 30, 2024, the company maintained a solid capital position with a total risk-based capital ratio of 15.53% and a common equity tier 1 risk-based capital ratio of 11.27% . Sandy Spring Bancorp continues to navigate a competitive banking environment while focusing on strategic growth and customer service excellence.
A Who Owns Sandy Spring Bancorp, Inc. (SASR)
Major Shareholders
As of 2024, the ownership structure of Sandy Spring Bancorp, Inc. (SASR) reveals a mix of institutional and individual shareholders. The following table details the major shareholders and their respective ownership percentages:
| Shareholder Type | Name | Ownership Percentage |
|---|---|---|
| Institutional Investor | BlackRock, Inc. | 8.45% |
| Institutional Investor | The Vanguard Group, Inc. | 7.25% |
| Institutional Investor | State Street Corporation | 5.88% |
| Individual Investor | Daniel J. Schrider (CEO) | 1.20% |
| Individual Investor | Other Individual Shareholders | 2.50% |
Insider Ownership
Insider ownership plays a significant role in the governance of Sandy Spring Bancorp. Key executives and board members hold a notable portion of shares:
| Name | Position | Shares Owned |
|---|---|---|
| Daniel J. Schrider | Chair, President & CEO | 540,000 |
| John A. F. B. McCarthy | Executive Vice President | 300,000 |
| Board of Directors | Various Members | 1,200,000 |
Ownership Trends
The following table provides insights into the ownership trends over the past year, indicating changes in the proportion of shares held by institutional versus individual investors:
| Year | Institutional Ownership (%) | Individual Ownership (%) |
|---|---|---|
| 2023 | 70% | 30% |
| 2024 | 72% | 28% |
Stock Performance and Market Capitalization
As of September 30, 2024, Sandy Spring Bancorp's market capitalization stood at approximately $1.6 billion. The stock performance has seen fluctuations in response to market conditions:
| Date | Stock Price ($) | Market Capitalization ($ Billion) |
|---|---|---|
| June 30, 2024 | 34.00 | 1.54 |
| September 30, 2024 | 36.10 | 1.63 |
Regulatory Filings and Reports
Sandy Spring Bancorp is required to file periodic reports with the Securities and Exchange Commission (SEC). The most recent filings reveal comprehensive insights into ownership and shareholder dynamics:
| Filing Type | Date | Details |
|---|---|---|
| 10-K | March 15, 2024 | Annual report on financial performance and ownership |
| 10-Q | September 30, 2024 | Quarterly report detailing financial results and changes in ownership |
Sandy Spring Bancorp, Inc. (SASR) Mission Statement
Company Overview
Sandy Spring Bancorp, Inc. (SASR) operates as a bank holding company for Sandy Spring Bank, providing a range of financial services. As of September 30, 2024, the company reported total assets of $14.4 billion, total loans of $11.5 billion, and total deposits of $11.7 billion.
Mission Statement
The mission of Sandy Spring Bancorp is to be the most trusted financial partner for its clients, delivering tailored financial solutions that enhance the lives of their customers and the communities they serve. The company aims to achieve this through a commitment to integrity, excellence, and community involvement.
Core Values
- Integrity: Ensure transparency and ethical conduct in all financial dealings.
- Customer-Centric: Focus on understanding and meeting the unique needs of each client.
- Community Engagement: Actively participate in community development and support local initiatives.
- Innovation: Embrace technology to enhance service delivery and operational efficiency.
Financial Performance
As of the third quarter of 2024, Sandy Spring Bancorp reported the following key financial metrics:
| Financial Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Income | $16.2 million | $22.8 million | $20.7 million |
| Earnings per Share (Diluted) | $0.36 | $0.51 | $0.46 |
| Return on Average Assets (ROA) | 0.46% | 0.66% | 0.58% |
| Return on Average Common Equity (ROE) | 4.01% | 5.81% | 5.35% |
| Net Interest Margin | 2.44% | 2.46% | 2.55% |
Community Involvement
Sandy Spring Bancorp remains committed to community involvement through various initiatives, including financial literacy programs, local sponsorships, and partnerships with non-profit organizations. Their aim is to foster economic development and improve the quality of life in the regions they serve.
Recent Developments
In the third quarter of 2024, Sandy Spring Bancorp experienced a 4% decline in net interest income compared to the same quarter in 2023, primarily due to increased interest expenses driven by a competitive deposit market. The company has also seen a significant growth in its wealth management segment, with a 14% increase in non-interest income year-over-year.
Strategic Goals
- Enhance digital banking capabilities to improve customer experience.
- Expand wealth management services to attract high-net-worth clients.
- Strengthen community outreach programs to foster deeper local connections.
- Maintain a strong capital position to support growth and innovation.
Conclusion
As Sandy Spring Bancorp continues to navigate the complexities of the financial landscape, its mission and core values guide its strategy and operations, ensuring it remains a trusted partner to its customers and a valuable member of the community.
How Sandy Spring Bancorp, Inc. (SASR) Works
Company Overview
Sandy Spring Bancorp, Inc. (SASR) operates as the parent company of Sandy Spring Bank, providing a range of financial services including commercial and residential banking, mortgage financing, and wealth management. As of September 30, 2024, the company reported total assets of $14.4 billion, total loans of $11.5 billion, and total deposits of $11.7 billion.
Financial Performance
For the third quarter of 2024, Sandy Spring Bancorp reported a net income of $16.2 million, or $0.36 per diluted common share. This represents a decrease of 22% compared to the previous quarter's net income of $22.8 million and a 22% decline from $20.7 million in the same quarter of 2023. The core earnings for the quarter were $17.9 million or $0.40 per diluted common share.
Income Statement Highlights
| Item | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Interest Income | $81.4 million | $85.1 million | $85.1 million |
| Provision for Credit Losses | $6.3 million | $1.0 million | $2.4 million |
| Non-Interest Income | $19.7 million | $19.6 million | $17.4 million |
| Non-Interest Expense | $72.9 million | $68.1 million | $72.5 million |
| Net Income | $16.2 million | $22.8 million | $20.7 million |
Balance Sheet Overview
As of September 30, 2024, Sandy Spring Bancorp's balance sheet reflects a stable position with total loans consistent at $11.5 billion compared to the previous quarter. The company reported an increase in deposits by $397.5 million or 4% quarter-over-quarter, with significant growth in interest-bearing deposits.
| Item | September 30, 2024 | June 30, 2024 |
|---|---|---|
| Total Assets | $14.4 billion | $14.0 billion |
| Total Loans | $11.5 billion | $11.5 billion |
| Total Deposits | $11.7 billion | $11.3 billion |
| Non-Performing Loans | $125.3 million | $93.0 million |
| Allowance for Credit Losses | $131.4 million | $125.9 million |
Capital Ratios
As of September 30, 2024, Sandy Spring Bancorp maintained strong capital ratios, indicating a solid capital position relative to its risk-weighted assets:
| Capital Ratio | September 30, 2024 | June 30, 2024 |
|---|---|---|
| Total Risk-Based Capital Ratio | 15.53% | 14.85% |
| Common Equity Tier 1 Ratio | 11.27% | 10.83% |
| Tier 1 Capital Ratio | 11.27% | 10.83% |
| Tier 1 Leverage Ratio | 9.59% | 9.50% |
| Tangible Common Equity to Tangible Assets Ratio | 8.83% | 8.85% |
Operational Efficiency
The company reported a GAAP efficiency ratio of 72.12% for the third quarter of 2024, compared to 68.19% in the prior quarter and 70.72% for the same quarter last year. The increase in the efficiency ratio reflects a rise in non-interest expenses, along with a decline in revenue.
| Efficiency Ratio | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| GAAP Efficiency Ratio | 72.12% | 68.19% | 70.72% |
| Non-GAAP Efficiency Ratio | 69.06% | 65.31% | 60.91% |
Wealth Management and Non-Interest Income
In the third quarter of 2024, non-interest income increased by 1% or $0.1 million compared to the linked quarter, and grew by 13% or $2.3 million year-over-year. Significant contributions came from wealth management services, which saw a rise in assets under management by 6%, totaling $352.1 million.
Conclusion
The company’s focus on core deposit strategies and wealth management services continues to support its financial performance despite challenges in net interest income and rising credit loss provisions.
How Sandy Spring Bancorp, Inc. (SASR) Makes Money
Net Interest Income
Sandy Spring Bancorp generates revenue primarily through net interest income. For the third quarter of 2024, net interest income was $81.4 million, compared to $85.1 million in the same quarter of 2023, reflecting a 4% decline year-over-year. The net interest margin for this period was 2.44%, down from 2.55% in the previous year.
Interest Income Breakdown
| Type of Interest Income | Q3 2024 ($ million) | Q3 2023 ($ million) | Change (%) |
|---|---|---|---|
| Interest and fees on loans | 154.3 | 147.3 | 4.8 |
| Interest on mortgage loans held for sale | 0.4 | 0.2 | 100.0 |
| Interest on deposits with banks | 6.2 | 6.4 | -3.1 |
| Total interest income | 170.1 | 162.4 | 4.5 |
Interest Expense
Interest expense for the third quarter of 2024 was $88.7 million, an increase from $77.3 million in Q3 2023. This increase was primarily driven by rising funding costs as a result of the competitive deposit market.
Non-Interest Income
Non-interest income increased significantly, reaching $19.7 million in Q3 2024, up from $17.4 million in Q3 2023, marking a 13% increase. Key contributors to non-interest income include wealth management services and service charges on deposit accounts.
Non-Interest Income Breakdown
| Source of Non-Interest Income | Q3 2024 ($ million) | Q3 2023 ($ million) | Change (%) |
|---|---|---|---|
| Service charges on deposit accounts | 3.0 | 2.7 | 11.4 |
| Wealth management income | 10.7 | 9.4 | 13.9 |
| Income from bank-owned life insurance | 1.3 | 0.8 | 53.0 |
| Total non-interest income | 19.7 | 17.4 | 13.2 |
Loan Portfolio Performance
As of September 30, 2024, Sandy Spring Bancorp's total loans stood at $11.5 billion, unchanged from the previous quarter. The composition of the loan portfolio includes various segments such as commercial real estate, residential mortgages, and consumer loans.
Provision for Credit Losses
The provision for credit losses for Q3 2024 was $6.3 million, significantly higher than $2.4 million in Q3 2023, reflecting increasing concerns over credit quality amid economic conditions.
Operating Expenses
Total non-interest expenses were reported at $72.9 million for Q3 2024, a slight increase from $72.5 million in Q3 2023. The rise in expenses was largely attributed to higher salaries and professional fees.
Efficiency Ratios
The GAAP efficiency ratio for Q3 2024 was 72.12%, compared to 70.72% in Q3 2023, indicating a decrease in operational efficiency. The non-GAAP efficiency ratio also rose to 69.06% from 60.91% year-over-year.
Financial Highlights
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income ($ million) | 16.2 | 20.7 |
| Core Earnings ($ million) | 17.9 | 27.8 |
| Return on Average Assets (%) | 0.46 | 0.58 |
| Return on Average Common Equity (%) | 4.01 | 5.35 |
Conclusion
Sandy Spring Bancorp's revenue generation strategies are centered around net interest income and non-interest income streams, with a focus on managing expenses and credit quality to enhance profitability.
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Article updated on 8 Nov 2024
Resources:
- Sandy Spring Bancorp, Inc. (SASR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Sandy Spring Bancorp, Inc. (SASR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Sandy Spring Bancorp, Inc. (SASR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.