OLNEY, Md., Oct. 21, 2010 (GLOBE NEWSWIRE) -- Sandy Spring Bancorp, Inc., (Nasdaq:SASR) the parent company of Sandy Spring Bank, today announced net income available to common stockholders for the third quarter of 2010 of $6.4 million ($0.27 per diluted share) compared to a net loss available to common stockholders of $14.8 million (($0.90) per diluted share) for the third quarter of 2009 and net income available to common stockholders of $5.1 million ($0.21 per diluted share) for the second quarter of 2010. The third quarter of 2010 included a provision for loan and lease losses of $2.5 million compared to $34.5 million for the third quarter of 2009 and $6.1 million for the second quarter of 2010.
Net income available to common stockholders for the nine-month period ending September 30, 2010 totaled $10.8 million ($0.49 per diluted share) compared to a net loss available to common stockholders of $15.2 million (($0.93) per diluted share) for the prior year period. The results included a provision for loan and lease losses totaling $23.6 million for the first nine months of 2010. The results for the first nine months of 2009 included a provision for loan and lease losses of $55.7 million and an FDIC special assessment charge of $1.7 million.
"Our positive third quarter results provide us with further reason for optimism even as the economy struggles to recover from the recent recession. The experience gained during this very challenging economic period has enabled us to emerge as a stronger institution as we remain focused on the business of community banking," said Daniel J. Schrider, President and Chief Executive Officer.
"We took aggressive action early in the credit cycle to identify and resolve problem credits and this is evidenced by the continued downward trend in our non-performing commercial real estate mortgage and construction loans, in addition to commercial business loans. The provision for loan losses declined for the fourth consecutive quarter, due in large part to a continued decrease in non-performing loans. We recognize that more work remains to be done in this area, given the tenuous state of the economic recovery, and our credit team is continuing to work diligently to deal with our remaining problem credits.
"The low level of consumer and small business confidence has served to limit business expansion and new home construction as the national economy remains in neutral, with the added threat of deflation and volatile international markets. Our primary challenge is to make quality loans, and we are developing loan origination strategies that will serve our business and retail clients.
"On a further positive note, our consistent expense control and stable net interest margin continue to drive our favorable performance. We believe that emphasis on the fundamental elements of community banking will serve us well as the business climate improves," said Schrider.
Third Quarter Highlights:
- The Company repaid $41.5 million of the $83.0 million in preferred stock issued to the U.S. Treasury under the TARP Capital Purchase Program.
- The provision for loan and lease losses totaled $2.5 million for the quarter compared to $34.5 million for the third quarter of 2009 and $6.1 million for the second quarter of 2010.
- Non-performing assets declined to $103.6 million compared to $150.2 million at September 30, 2009 and $118.0 million at June 30, 2010. This decrease also resulted in a coverage ratio of the allowance for loan and lease losses compared to non-performing loans of 72% compared to a ratio of 44% at September 30, 2009 and 65% at June 30, 2010.
- Loan charge-offs, net of recoveries, totaled $6.5 million for the third quarter of 2010 compared to $29.8 million for the third quarter of 2009 and $4.3 million for the second quarter of 2010.
- The net interest margin was 3.64% for the third quarter of 2010 compared to 3.27% for the third quarter of 2009 and 3.58% for the second quarter of 2010.
- Non-interest expenses decreased 5% for the third quarter of 2010 compared to the third quarter of 2009 and decreased 2% compared to the second quarter of 2010.
Review of Balance Sheet and Credit Quality
Comparing September 30, 2010 balances to September 30, 2009, total assets decreased 1% to $3.6 billion. Total loans and leases decreased 6% to $2.2 billion compared to the prior year. This decrease in loans was attributable to declines in most major categories of the loan portfolio due to a lack of loan demand in weak economic conditions. Total loans decreased 2% compared to the second quarter of 2010.
Customer funding sources, which include deposits and other short-term borrowings from core customers, decreased 3% compared to the prior year and 2% compared to the second quarter of 2010. The decrease compared to the prior year was due primarily to a decline of 18% in certificates of deposit. This planned decrease was due mainly to a reduction in rates as the Company managed its net interest margin. The decline in certificate of deposit balances was substantially offset by an increase of 6% in the combined balances of noninterest-bearing deposits, traditional savings and interest-bearing checking accounts as clients sought to retain liquidity in a volatile economic environment.
Stockholders' equity totaled $451.7 million at September 30, 2010, and represented 12.5% of total assets, compared to 10.5% at September 30, 2009. At September 30, 2010 the Company had a total risk-based capital ratio of 16.56%, a tier 1 risk-based capital ratio of 15.29% and a tier 1 leverage ratio of 11.15%.
The provision for loan and lease losses totaled $2.5 million for the third quarter of 2010 compared to $34.5 million for the third quarter of 2009 and $6.1 million for the second quarter of 2010. The decrease compared to both the prior year quarter and the second quarter of 2010 was primarily due to a lower level of non-performing loans. The credit risk management process has resulted in the identification of the most significant problem credits. The decrease in the provision was the direct result of these identification efforts, the early provision of loan loss reserves and the aggressive work out or charge-off of these problem credits.
Loan charge-offs, net of recoveries, totaled $6.5 million for the third quarter of 2010 compared to net charge-offs of $29.8 million for the third quarter of 2009 and net charge-offs of $4.3 million for the second quarter of 2010. The allowance for loan and lease losses represented 3.08% of outstanding loans and leases and 72% of non-performing loans at September 30, 2010 compared to 2.70% of outstanding loans and leases and 44% of non-performing loans at September 30, 2009 and 3.22% of outstanding loans and leases and 65% of non-performing loans at June 30, 2010. Non-performing loans includes loans 90 days or more past due.
Non-performing assets totaled $103.6 million at September 30, 2010 compared to $150.2 million at September 30, 2009 and $118.0 million at June 30, 2010. The decrease compared to the prior year was due primarily to a decrease in non-accrual loans, particularly in the commercial real estate mortgage and construction portfolios and the commercial business loan portfolios as a result of charge-offs and pay-downs.
Income Statement Review
Comparing the third quarters of 2010 and 2009, net interest income increased by $3.1 million, or 12%. This increase was due primarily to the decline in rates paid on deposits. This resulted in a higher net interest margin for the third quarter of 2010 of 3.64% compared to 3.27% for third quarter of 2009.
Non-interest income remained virtually level at $10.7 million for the third quarter of 2010 compared to the third quarter of 2009. Other noninterest income increased $0.7 million due largely to higher accrued gains on mortgage commitments. Trust and investment management fees increased $0.1 million or 4% while Visa check fees increased $0.1 million or 11%. These gains were largely offset by decreases of $0.3 million or 9% in service charges on deposits and gains on sales of mortgage loans which decreased $0.2 million or 10% due to lower mortgage loan origination volumes.
Non-interest expenses were $25.3 million in the third quarter of 2010 compared to $26.6 million in the third quarter of 2009, a decrease of $1.3 million or 5%. Salaries and benefits expense decreased $0.6 million or 4% due primarily to lower health plan expenses. FDIC insurance expense decreased $0.2 million or 13% due mainly to the decline in deposit balances while amortization of intangibles decreased $0.6 million or 53% due to intangibles from branch acquisitions that had fully amortized during the third quarter of 2009.
Comparing the first nine months of 2010 and 2009, net interest income increased by $10.8 million, or 14%. This increase was due primarily to the decline in rates paid on deposits which more than offset the decrease in the yield on interest earning assets. The net interest margin for the first nine months of 2010 increased to 3.59% compared to a net interest margin of 3.25% for the prior year period.
Non-interest income increased 1% to $33.9 million for the first nine months of 2010 as compared to $33.7 million in 2009. This increase was due primarily to fees on sales of investments which increased $0.4 million or 19% resulting from growth in sales of financial products. In addition, trust and investment fees increased $0.4 million or 6% due to growth in assets under management while Visa check fees increased $0.3 million or 14% due to an increased volume of electronic transactions. Other noninterest income also increased $0.7 million or 14% due to higher mark to market adjustments associated with commercial loan swaps. These increases were somewhat offset by a decline of $0.6 million or 6% in service charges on deposits due to lower commercial account analysis fees and return check charges.
Non-interest expenses were $76.6 million for the first nine months of 2010 compared to $77.7 million for the first nine months of 2009. This decrease was due primarily to a decrease of $1.6 million or 32% in FDIC insurance expense due largely to a $1.7 million one time special assessment by the FDIC in the second quarter of 2009 and a decrease in intangibles amortization of $1.7 million or 53% due to intangibles from branch acquisitions that had fully amortized during the third quarter of 2009. These decreases were partially offset by an increase of $1.6 million or 14% in other noninterest expenses due primarily to higher mark-to-market adjustments associated with commercial loan swaps.
Conference Call
The Company's management will host a conference call to discuss its third quarter results today at 2:00 P.M. (ET). A live Web cast of the conference call is available through the Investor Relations' section of the Sandy Spring Web site at www.sandyspringbank.com. Participants may call 877-380-5664. A password is not necessary. Visitors to the Web site are advised to log on 10 minutes ahead of the scheduled start of the call. An internet-based replay will be available at the Web site until 12:00 midnight (ET) November 22, 2010. A telephone voice replay will also be available during that same time period at 800-642-1687. Please use pass code #15724091 to access.
About Sandy Spring Bancorp/Sandy Spring Bank
With $3.6 billion in assets, Sandy Spring Bancorp is the holding company for Sandy Spring Bank and its principal subsidiaries, Sandy Spring Insurance Corporation, The Equipment Leasing Company and West Financial Services, Inc. Sandy Spring Bancorp is the largest publicly traded banking company headquartered and operating in Maryland. Sandy Spring is a community banking organization that focuses its lending and other services on businesses and consumers in the local market area. Independent and community-oriented, Sandy Spring Bank was founded in 1868 and offers a broad range of commercial banking, retail banking and trust services through 43 community offices in Anne Arundel, Carroll, Frederick, Howard, Montgomery, and Prince George's counties in Maryland, and Fairfax and Loudoun counties in Virginia. Through its subsidiaries, Sandy Spring Bank also offers a comprehensive menu of leasing, insurance and investment management services. Visit www.sandyspringbank.com to locate an ATM near you or for more information about Sandy Spring Bank.
The Sandy Spring Bancorp, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4138
Forward-Looking Statements
Sandy Spring Bancorp makes forward-looking statements in this news release and in the conference call regarding this news release. These forward-looking statements may include: statements of goals, intentions, earnings expectations, and other expectations; estimates of risks and of future costs and benefits; assessments of probable loan and lease losses; assessments of market risk; and statements of the ability to achieve financial and other goals.
Forward-looking statements are typically identified by words such as "believe," "expect," "anticipate," "intend," "outlook," "estimate," "forecast," "project" and other similar words and expressions. Forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made. Sandy Spring Bancorp does not assume any duty and does not undertake to update its forward-looking statements. Because forward-looking statements are subject to assumptions and uncertainties, actual results or future events could differ, possibly materially, from those that Sandy Spring Bancorp anticipated in its forward-looking statements, and future results could differ materially from historical performance.
Sandy Spring Bancorp's forward-looking statements are subject to the following principal risks and uncertainties: general economic conditions and trends, either nationally or locally; conditions in the securities markets; changes in interest rates; changes in deposit flows, and in the demand for deposit, loan, and investment products and other financial services; changes in real estate values; changes in the quality or composition of the Company's loan or investment portfolios; changes in competitive pressures among financial institutions or from non-financial institutions; the Company's ability to retain key members of management; changes in legislation, regulations, and policies; and a variety of other matters which, by their nature, are subject to significant uncertainties. Sandy Spring Bancorp provides greater detail regarding some of these factors in its Form 10-K for the year ended December 31, 2009, 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 September 30, |
% |
Nine Months Ended September 30, |
% | |||
| (Dollars in thousands, except per share data) | 2010 | 2009 | Change | 2010 | 2009 | Change |
| Results of Operations: | ||||||
| Net interest income | $ 29,499 | $ 26,402 | 12% | $ 86,654 | $ 75,875 | 14% |
| Provision for loan and lease losses | 2,453 | 34,450 | (93) | 23,585 | 55,678 | (58) |
| Non-interest income | 10,738 | 10,662 | 1 | 33,947 | 33,666 | 1 |
| Non-interest expenses | 25,339 | 26,567 | (5) | 76,598 | 77,675 | (1) |
| Income (loss) before income taxes | 12,445 | (23,953) | -- | 20,418 | (23,812) | -- |
| Net income (loss) | 8,484 | (13,574) | -- | 15,244 | (11,637) | -- |
| Net income (loss) available to common stockholders | $ 6,410 | $ (14,779) | -- | $ 10,767 | $ (15,244) | -- |
| Return on average assets (1) | 0.70% | (1.62)% | 0.40% | (0.58)% | ||
| Return on average common equity (1) | 6.26% | (19.01)% | 3.89% | (6.52)% | ||
| Net interest margin | 3.64% | 3.27% | 3.59% | 3.25% | ||
| Efficiency ratio - GAAP (3) | 62.98% | 71.68% | 63.51% | 70.91% | ||
| Efficiency ratio - Non-GAAP (3) | 59.27% | 66.49% | 60.46% | 66.07% | ||
| Per share data: | ||||||
| Basic net income (loss) | $ 0.35 | $ (0.83) | --% | $ 0.70 | $ (0.71) | --% |
| Basic net income (loss) per common share | 0.27 | (0.90) | -- | 0.49 | (0.93) | -- |
| Diluted net income (loss) | 0.35 | (0.83) | -- | 0.70 | (0.71) | -- |
| Diluted net income (loss) per common share | 0.27 | (0.90) | -- | 0.49 | (0.93) | -- |
| Dividends declared per common share | 0.01 | 0.12 | (92) | 0.03 | 0.36 | (92) |
| Book value per common share | 17.14 | 18.25 | (6) | 17.14 | 18.25 | (6) |
| Average fully diluted shares | 24,102,497 | 16,466,631 | 46 | 21,812,412 | 16,438,691 | 33 |
| Financial Condition at period-end: | ||||||
| Assets | $3,606,617 | $ 3,632,391 | (1)% | $3,606,617 | $ 3,632,391 | (1)% |
| Total loans and leases | 2,185,207 | 2,334,282 | (6) | 2,185,207 | 2,334,282 | (6) |
| Investment securities | 1,099,518 | 980,446 | 12 | 1,099,518 | 980,446 | 12 |
| Deposits | 2,585,496 | 2,683,487 | (4) | 2,585,496 | 2,683,487 | (4) |
| Stockholders' equity | 451,717 | 380,571 | 19 | 451,717 | 380,571 | 19 |
| Capital ratios: | ||||||
| Tier 1 leverage | 11.15% | 9.31% | 11.15% | 9.31% | ||
| Tier 1 capital to risk-weighted assets | 15.29% | 11.96% | 15.29% | 11.96% | ||
| Total regulatory capital to risk-weighted assets | 16.56% | 13.23% | 16.56% | 13.23% | ||
| Tangible common equity to tangible assets (4) | 9.06% | 6.07% | 9.06% | 6.07% | ||
| Average equity to average assets | 12.57% | 10.79% | 12.14% | 11.15% | ||
| Credit quality ratios: | ||||||
| Allowance for loan and lease losses to total loans and leases | 3.08% | 2.70% | 3.08% | 2.70% | ||
| Nonperforming loans to total loans and leases | 4.27% | 6.14% | 4.27% | 6.14% | ||
| Nonperforming assets to total assets | 2.87% | 4.14% | 2.87% | 4.14% | ||
| Annualized net charge-offs to average loans and leases (2) | 1.18% | 5.00% | 1.24% | 2.38% | ||
| (1) Calculation utilizes net income available to common stockholders. | ||||||
| (2) Calculation utilizes average loans and leases, excluding residential mortgage loans held-for-sale. | ||||||
|
(3) The GAAP efficiency ratio is non-interest expenses divided by net interest income plus non-interest income from the Consolidated Statements of Income. The traditional, non-GAAP efficiency ratio excludes intangible asset amortization from non-interest expense; securities gains (losses) from non-interest income; OTTI; and adds the tax-equivalent adjustment to net interest income. See the Reconciliation Table included with these Financial Highlights. |
||||||
|
(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, other comprehensive losses and preferred stock. See the Reconciliation Table included with these Financial Highlights. |
||||||
| Sandy Spring Bancorp, Inc. and Subsidiaries | ||||
| RECONCILIATION TABLE | ||||
|
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||
| (Dollars in thousands) | 2010 | 2009 | 2010 | 2009 |
| GAAP efficiency ratio: | ||||
| Non-interest expenses | $ 25,339 | $ 26,567 | $ 76,598 | $ 77,675 |
| Net interest income plus non-interest income | $ 40,237 | $ 37,064 | $ 120,601 | $ 109,541 |
| Efficiency ratio–GAAP | 62.98% | 71.68% | 63.51% | 70.91% |
| Non-GAAP efficiency ratio: | ||||
| Non-interest expenses | $ 25,339 | $ 26,567 | $ 76,598 | $ 77,675 |
| Less non-GAAP adjustment: | ||||
| Amortization of intangible assets | 495 | 1,048 | 1,487 | 3,150 |
| Non-interest expenses as adjusted | $ 24,844 | $ 25,519 | $ 75,111 | $ 74,525 |
| Net interest income plus non-interest income | $ 40,237 | $ 37,064 | $ 120,601 | $ 109,541 |
| Plus non-GAAP adjustment: | ||||
| Tax-equivalent income | 1,321 | 1,331 | 3,484 | 3,463 |
| Less non-GAAP adjustments: | ||||
| Securities gains | 25 | 15 | 323 | 207 |
| OTTI recognized in earnings | (380) | -- | (469) | -- |
| Net interest income plus non-interest income - as adjusted | $ 41,913 | $ 38,380 | $ 124,231 | $ 112,797 |
| Efficiency ratio–Non-GAAP | 59.27% | 66.49% | 60.46% | 66.07% |
| Tangible common equity ratio: | ||||
| Total stockholders' equity | $ 451,717 | $ 380,571 | $ 451,717 | $ 380,571 |
| Accumulated other comprehensive income (loss) | (8,384) | 310 | (8,384) | 310 |
| Goodwill | (76,816) | (76,816) | (76,816) | (76,816) |
| Other intangible assets, net | (7,050) | (9,033) | (7,050) | (9,033) |
| Preferred stock | (40,308) | (79,930) | (40,308) | (79,930) |
| Tangible common equity | $ 319,159 | $ 215,102 | $ 319,159 | $ 215,102 |
| Total assets | $ 3,606,617 | $ 3,632,391 | $ 3,606,617 | $ 3,632,391 |
| Goodwill | (76,816) | (76,816) | (76,816) | (76,816) |
| Other intangible assets, net | (7,050) | (9,033) | (7,050) | (9,033) |
| Tangible assets | $ 3,522,751 | $ 3,546,542 | $ 3,522,751 | $ 3,546,542 |
| Tangible common equity ratio | 9.06% | 6.07% | 9.06% | 6.07% |
| Sandy Spring Bancorp, Inc. and Subsidiaries | |||
| CONDENSED CONSOLIDATED STATEMENTS OF CONDITION (Unaudited) | |||
| (Dollars in thousands) |
September 30, 2010 |
December 31, 2009 |
September 30, 2009 |
| Assets | |||
| Cash and due from banks | $ 40,511 | $ 49,430 | $ 42,079 |
| Federal funds sold | 1,522 | 1,863 | 1,271 |
| Interest-bearing deposits with banks | 37,692 | 8,503 | 45,660 |
| Cash and cash equivalents | 79,725 | 59,796 | 89,010 |
| Residential mortgage loans held for sale (at fair value) | 19,234 | 12,498 | 10,926 |
| Investments available-for-sale (at fair value) | 960,313 | 858,433 | 807,145 |
|
Investments held-to-maturity --- fair value of $111,298, $137,787 and $146,800 at September 30, 2010, December 31, 2009 and September 30, 2009, respectively |
106,553 | 132,593 | 140,528 |
| Other equity securities | 32,652 | 32,773 | 32,773 |
| Total loans and leases | 2,185,207 | 2,298,010 | 2,334,282 |
| Less: allowance for loan and lease losses | (67,282) | (64,559) | (62,937) |
| Net loans and leases | 2,117,925 | 2,233,451 | 2,271,345 |
| Premises and equipment, net | 48,175 | 49,606 | 49,827 |
| Other real estate owned | 10,011 | 7,464 | 6,873 |
| Accrued interest receivable | 13,083 | 13,653 | 13,325 |
| Goodwill | 76,816 | 76,816 | 76,816 |
| Other intangible assets, net | 7,050 | 8,537 | 9,033 |
| Other assets | 135,080 | 144,858 | 124,790 |
| Total assets | $ 3,606,617 | $ 3,630,478 | $ 3,632,391 |
| Liabilities | |||
| Noninterest-bearing deposits | $ 580,309 | $ 540,578 | $ 573,601 |
| Interest-bearing deposits | 2,005,187 | 2,156,264 | 2,109,886 |
| Total deposits | 2,585,496 | 2,696,842 | 2,683,487 |
| Securities sold under retail repurchase agreements and federal funds purchased | 97,884 | 89,062 | 84,138 |
| Advances from FHLB | 409,263 | 411,584 | 411,827 |
| Subordinated debentures | 35,000 | 35,000 | 35,000 |
| Accrued interest payable and other liabilities | 27,257 | 24,404 | 37,368 |
| Total liabilities | 3,154,900 | 3,256,892 | 3,251,820 |
| Stockholders' Equity | |||
|
Preferred stock—par value $1.00 (liquidation preference of $1,000 per share) shares authorized 83,094, shares issued and outstanding 41,547, 83,094 and 83,094, net of discount of $1,239, $2,999, $3,164 at September 30, 2010, December 31, 2009 and September 30, 2009, respectively |
40,308 | 80,095 | 79,930 |
|
Common stock --- par value $1.00; shares authorized 49,916,906; shares issued and outstanding 24,006,748, 16,487,852 and 16,470,078 at September 30, 2010, December 31, 2009 and September 30, 2009, respectively |
24,007 | 16,488 | 16,470 |
| Warrants | 3,699 | 3,699 | 3,699 |
| Additional paid in capital | 176,582 | 87,334 | 87,572 |
| Retained earnings | 198,737 | 188,622 | 193,210 |
| Accumulated other comprehensive income (loss) | 8,384 | (2,652) | (310) |
| Total stockholders' equity | 451,717 | 373,586 | 380,571 |
| Total liabilities and stockholders' equity | $ 3,606,617 | $ 3,630,478 | $ 3,632,391 |
| Sandy Spring Bancorp, Inc. and Subsidiaries | ||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME/(LOSS) (Unaudited) | ||||
|
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||
| (Dollars in thousands, except per share data) | 2010 | 2009 | 2010 | 2009 |
| Interest Income: | ||||
| Interest and fees on loans and leases | $ 29,084 | $ 31,280 | $ 87,742 | $ 96,579 |
| Interest on loans held for sale | 148 | 121 | 321 | 654 |
| Interest on deposits with banks | 61 | 23 | 158 | 112 |
| Interest and dividends on securities: | ||||
| Taxable | 6,336 | 5,947 | 18,640 | 13,673 |
| Exempt from federal income taxes | 1,737 | 1,814 | 5,372 | 5,560 |
| Interest on federal funds sold | 1 | -- | 2 | 3 |
| Total interest income | 37,367 | 39,185 | 112,235 | 116,581 |
| Interest Expense: | ||||
| Interest on deposits | 3,883 | 8,743 | 13,741 | 28,118 |
| Interest on retail repurchase agreements and federal funds purchased | 61 | 87 | 198 | 225 |
| Interest on advances from FHLB | 3,676 | 3,706 | 10,949 | 11,005 |
| Interest on subordinated debt | 248 | 247 | 693 | 1,358 |
| Total interest expense | 7,868 | 12,783 | 25,581 | 40,706 |
| Net interest income | 29,499 | 26,402 | 86,654 | 75,875 |
| Provision for loan and lease losses | 2,453 | 34,450 | 23,585 | 55,678 |
| Net interest income after provision for loan and lease losses | 27,046 | (8,048) | 63,069 | 20,197 |
| Non-interest Income: | ||||
| Investment securities gains | 25 | 15 | 323 | 207 |
| Total other-than-temporary impairment ("OTTI") losses | (334) | -- | (1,168) | -- |
|
Portion of OTTI losses recognized in other comprehensive income, before taxes |
(46) | -- | 699 | -- |
| Net OTTI recognized in earnings | (380) | -- | (469) | -- |
| Service charges on deposit accounts | 2,567 | 2,823 | 7,984 | 8,537 |
| Gains on sales of mortgage loans | 915 | 1,011 | 2,544 | 2,819 |
| Fees on sales of investment products | 782 | 740 | 2,464 | 2,062 |
| Trust and investment management fees | 2,505 | 2,406 | 7,488 | 7,063 |
| Insurance agency commissions | 978 | 1,048 | 3,895 | 4,138 |
| Income from bank owned life insurance | 709 | 740 | 2,105 | 2,176 |
| Visa check fees | 843 | 758 | 2,438 | 2,144 |
| Other income | 1,794 | 1,121 | 5,175 | 4,520 |
| Total non-interest income | 10,738 | 10,662 | 33,947 | 33,666 |
| Non-interest Expenses: | ||||
| Salaries and employee benefits | 13,841 | 14,411 | 41,393 | 41,319 |
| Occupancy expense of premises | 2,826 | 2,685 | 8,625 | 8,008 |
| Equipment expenses | 1,137 | 1,444 | 3,655 | 4,332 |
| Marketing | 589 | 484 | 1,678 | 1,389 |
| Outside data services | 966 | 987 | 3,007 | 2,754 |
| FDIC insurance | 1,056 | 1,219 | 3,383 | 4,968 |
| Amortization of intangible assets | 495 | 1,048 | 1,487 | 3,150 |
| Other expenses | 4,429 | 4,289 | 13,370 | 11,755 |
| Total non-interest expenses | 25,339 | 26,567 | 76,598 | 77,675 |
| Income (loss) before income taxes | 12,445 | (23,953) | 20,418 | (23,812) |
| Income tax expense (benefit) | 3,961 | (10,379) | 5,174 | (12,175) |
| Net income (loss) | $ 8,484 | $ (13,574) | $ 15,244 | $ (11,637) |
| Preferred stock dividends and discount accretion | 2,074 | 1,205 | 4,477 | 3,607 |
| Net income (loss) available to common stockholders | $ 6,410 | $ (14,779) | $ 10,767 | $ (15,244) |
| Net Income Per Share Amounts: | ||||
| Basic net income (loss) per share | $ 0.35 | $ (0.83) | $ 0.70 | $ (0.71) |
| Basic net income (loss) per common share | 0.27 | (0.90) | 0.49 | (0.93) |
| Diluted net income (loss) per share | $ 0.35 | $ (0.83) | $ 0.70 | $ (0.71) |
| Diluted net income (loss) per common share | 0.27 | (0.90) | 0.49 | (0.93) |
| Dividends declared per common share | $ 0.01 | $ 0.12 | $ 0.03 | $ 0.36 |
| Sandy Spring Bancorp, Inc. and Subsidiaries | ||||||||
| HISTORICAL TRENDS - QUARTERLY FINANCIAL DATA (Unaudited) | ||||||||
| 2010 | 2009 | |||||||
| (Dollars in thousands, except per share data) | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |
| Profitability for the quarter: | ||||||||
| Tax-equivalent interest income | $ 38,688 | $ 38,663 | $ 38,368 | $ 40,025 | $ 40,516 | $ 39,791 | $ 39,737 | |
| Interest expense | 7,868 | 8,512 | 9,201 | 10,816 | 12,783 | 14,220 | 13,703 | |
| Tax-equivalent net interest income | 30,820 | 30,151 | 29,167 | 29,209 | 27,733 | 25,571 | 26,034 | |
| Tax-equivalent adjustment | 1,321 | 1,155 | 1,008 | 1,376 | 1,331 | 1,123 | 1,009 | |
| Provision for loan and lease losses | 2,453 | 6,107 | 15,025 | 21,084 | 34,450 | 10,615 | 10,613 | |
| Non-interest income | 10,738 | 11,869 | 11,340 | 11,575 | 10,662 | 11,030 | 11,974 | |
| Non-interest expenses | 25,339 | 25,953 | 25,306 | 25,364 | 26,567 | 26,858 | 24,250 | |
| Income (loss) before income taxes | 12,445 | 8,805 | (832) | (7,040) | (23,953) | (1,995) | 2,136 | |
| Income tax expense (benefit) | 3,961 | 2,546 | (1,333) | (3,822) | (10,379) | (1,715) | (81) | |
| Net Income (loss) | 8,484 | 6,259 | 501 | (3,218) | (13,574) | (280) | 2,217 | |
| Net Income (loss) available to common stockholders | $ 6,410 | $ 5,056 | $ (699) | $ (4,421) | $ (14,779) | $ (1,482) | $ 1,017 | |
| Financial ratios: | ||||||||
| Return on average assets | 0.70% | 0.56% | (0.08)% | (0.48)% | (1.62)% | (0.17)% | 0.12% | |
| Return on average common equity | 6.26% | 5.13% | (0.92)% | (4.66)% | (19.01)% | (1.90)% | 1.32% | |
| Net interest margin | 3.64% | 3.58% | 3.56% | 3.40% | 3.27% | 3.11% | 3.39% | |
| Efficiency ratio - GAAP (1) | 62.98% | 63.51% | 64.07% | 64.36% | 71.68% | 75.70% | 65.54% | |
| Efficiency ratio - Non-GAAP (1) | 59.27% | 60.59% | 61.56% | 61.29% | 66.49% | 70.58% | 61.29% | |
| Per share data: | ||||||||
| Basic net income (loss) per share | $ 0.35 | $ 0.26 | $ 0.03 | $ (0.20) | $ (0.83) | $ (0.02) | $ 0.14 | |
| Basic net income (loss) per common share | 0.27 | 0.21 | (0.04) | (0.27) | (0.90) | (0.09) | 0.06 | |
| Diluted net income (loss) per share | $ 0.35 | 0.26 | 0.03 | (0.20) | (0.83) | (0.02) | 0.13 | |
| Diluted net income (loss) per common share | 0.27 | 0.21 | (0.04) | (0.27) | (0.90) | (0.09) | 0.06 | |
| Dividends declared per common share | $ 0.01 | 0.01 | 0.01 | 0.01 | 0.12 | 0.12 | 0.12 | |
| Book value per common share | $ 17.14 | 16.80 | 16.33 | 17.80 | 18.25 | 18.92 | 19.06 | |
| Average fully diluted shares | 24,102,497 | 24,033,158 | 17,243,415 | 16,477,925 | 16,496,480 | 16,444,252 | 16,433,788 | |
| Non-interest income: | ||||||||
| Securities gains | $ 25 | $ 95 | $ 203 | $ 211 | $ 15 | $ 30 | $ 162 | |
| Net OTTI recognized in earnings | (380) | (89) | -- | -- | -- | -- | -- | |
| Service charges on deposit accounts | 2,567 | 2,791 | 2,626 | 2,896 | 2,823 | 2,851 | 2,863 | |
| Gains on sales of mortgage loans | 915 | 1,020 | 609 | 434 | 1,011 | 786 | 1,022 | |
| Fees on sales of investment products | 782 | 941 | 741 | 761 | 740 | 622 | 700 | |
| Trust and investment management fees | 2,505 | 2,534 | 2,449 | 2,358 | 2,406 | 2,370 | 2,287 | |
| Insurance agency commissions | 978 | 928 | 1,989 | 1,098 | 1,048 | 1,040 | 2,050 | |
| Income from bank owned life insurance | 709 | 703 | 693 | 730 | 740 | 725 | 711 | |
| Visa check fees | 843 | 855 | 740 | 776 | 758 | 748 | 638 | |
| Other income | 1,794 | 2,091 | 1,290 | 2,311 | 1,121 | 1,858 | 1,541 | |
| Total non-interest income | $ 10,738 | $ 11,869 | $ 11,340 | $ 11,575 | $ 10,662 | $ 11,030 | $ 11,974 | |
| Non-interest expense: | ||||||||
| Salaries and employee benefits | $ 13,841 | $ 14,181 | $ 13,371 | $ 13,141 | $ 14,411 | $ 13,704 | $ 13,204 | |
| Occupancy expense of premises | 2,826 | 2,709 | 3,090 | 2,702 | 2,685 | 2,548 | 2,775 | |
| Equipment expenses | 1,137 | 1,304 | 1,214 | 1,359 | 1,444 | 1,374 | 1,514 | |
| Marketing | 589 | 573 | 516 | 777 | 484 | 485 | 420 | |
| Outside data services | 966 | 918 | 1,123 | 967 | 987 | 961 | 806 | |
| FDIC insurance | 1,056 | 1,186 | 1,141 | 1,124 | 1,219 | 2,790 | 959 | |
| Amortization of intangible assets | 495 | 496 | 496 | 496 | 1,048 | 1,047 | 1,055 | |
| Other expenses | 4,429 | 4,586 | 4,355 | 4,798 | 4,289 | 3,949 | 3,517 | |
| Total non-interest expense | $ 25,339 | $ 25,953 | $ 25,306 | $ 25,364 | $ 26,567 | $ 26,858 | $ 24,250 | |
|
(1) The GAAP efficiency ratio is non-interest expenses divided by net interest income plus non-interest income from the Consolidated Statements of Income. The traditional, non-GAAP efficiency ratio excludes intangible asset amortization and the goodwill impairment loss; excludes securities gains; OTTI losses from non-interest income; and adds the tax-equivalent adjustment to net interest income. See the Reconciliation Table included with these Financial Highlights. |
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| Sandy Spring Bancorp, Inc. and Subsidiaries | |||||||
| HISTORICAL TRENDS - QUARTERLY FINANCIAL DATA (Unaudited) | |||||||
| 2010 | 2009 | ||||||
| (Dollars in thousands) | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 |
| Balance sheets at quarter end: | |||||||
| Residential mortgage loans | $442,723 | $458,502 | $460,129 | $ 457,414 | $ 455,312 | $ 450,500 | $ 461,359 |
| Residential construction loans | 92,485 | 86,393 | 83,902 | 92,283 | 115,258 | 138,923 | 163,861 |
| Commercial mortgage loans | 903,195 | 900,312 | 882,040 | 894,951 | 873,438 | 862,315 | 859,882 |
| Commercial construction loans | 96,823 | 95,357 | 130,064 | 131,789 | 174,052 | 199,278 | 222,805 |
| Commercial loans and leases | 258,566 | 284,708 | 302,995 | 321,924 | 314,599 | 333,025 | 342,870 |
| Consumer loans | 391,415 | 393,560 | 397,527 | 399,649 | 401,623 | 405,348 | 411,068 |
| Total loans and leases | 2,185,207 | 2,218,832 | 2,256,657 | 2,298,010 | 2,334,282 | 2,389,389 | 2,461,845 |
| Less: allowance for loan and lease losses | (67,282) | (71,377) | (69,575) | (64,559) | (62,937) | (58,317) | (59,798) |
| Net loans and leases | 2,117,925 | 2,147,455 | 2,187,082 | 2,233,451 | 2,271,345 | 2,331,072 | 2,402,047 |
| Goodwill | 76,816 | 76,816 | 76,816 | 76,816 | 76,816 | 76,816 | 76,816 |
| Other intangible assets, net | 7,050 | 7,546 | 8,042 | 8,537 | 9,033 | 10,080 | 11,128 |
| Total assets | 3,606,617 | 3,701,150 | 3,673,246 | 3,630,478 | 3,632,391 | 3,617,497 | 3,519,432 |
| Total deposits | 2,585,496 | 2,659,956 | 2,653,448 | 2,696,842 | 2,683,487 | 2,650,845 | 2,553,912 |
| Customer repurchase agreements | 97,884 | 86,062 | 78,416 | 74,062 | 84,138 | 98,827 | 91,928 |
| Total stockholders' equity | 451,717 | 483,681 | 471,857 | 373,586 | 380,571 | 391,262 | 392,522 |
| Quarterly average balance sheets: | |||||||
| Residential mortgage loans | $466,437 | $467,970 | $462,803 | $ 464,737 | $ 460,772 | $ 477,955 | $ 481,721 |
| Residential construction loans | 87,522 | 85,617 | 89,732 | 106,115 | 123,892 | 150,914 | 176,811 |
| Commercial mortgage loans | 906,010 | 887,259 | 891,722 | 877,419 | 871,831 | 862,658 | 854,402 |
| Commercial construction loans | 96,502 | 115,965 | 131,265 | 165,784 | 191,021 | 216,897 | 224,229 |
| Commercial loans and leases | 272,353 | 294,168 | 317,492 | 312,547 | 327,569 | 341,039 | 359,820 |
| Consumer loans | 393,491 | 395,833 | 398,233 | 401,164 | 401,930 | 408,200 | 408,843 |
| Total loans and leases | 2,222,315 | 2,246,812 | 2,291,247 | 2,327,766 | 2,377,015 | 2,457,663 | 2,505,826 |
| Securities | 1,058,175 | 1,013,756 | 970,681 | 1,026,179 | 956,350 | 772,878 | 536,981 |
| Total earning assets | 3,360,758 | 3,379,388 | 3,318,070 | 3,409,867 | 3,370,823 | 3,298,923 | 3,117,590 |
| Total assets | 3,620,881 | 3,645,090 | 3,591,786 | 3,672,382 | 3,627,617 | 3,549,185 | 3,375,715 |
| Total interest-bearing liabilities | 2,571,000 | 2,596,353 | 2,653,187 | 2,709,152 | 2,671,944 | 2,595,303 | 2,471,762 |
| Noninterest-bearing demand deposits | 568,835 | 547,245 | 524,313 | 549,347 | 532,462 | 527,713 | 476,361 |
| Total deposits | 2,607,190 | 2,612,633 | 2,640,853 | 2,718,882 | 2,661,108 | 2,581,837 | 2,431,471 |
| Customer repurchase agreements | 87,927 | 85,178 | 81,622 | 92,471 | 95,310 | 93,980 | 69,212 |
| Total stockholders' equity | 455,101 | 475,521 | 387,099 | 380,534 | 391,571 | 393,201 | 391,673 |
| Capital and credit quality measures: | |||||||
| Average equity to average assets | 12.57% | 13.05% | 10.78% | 10.36% | 10.79% | 11.08% | 11.60% |
| Allowance for loan and lease losses to loans and leases | 3.08% | 3.22% | 3.08% | 2.81% | 2.70% | 2.44% | 2.43% |
| Non-performing loans to total loans | 4.27% | 4.93% | 6.05% | 5.82% | 6.14% | 5.84% | 4.90% |
| Non-performing assets to total assets | 2.87% | 3.19% | 3.90% | 3.89% | 4.14% | 4.05% | 3.57% |
| Annualized net charge-offs to average loans and leases (1) | 1.18% | 0.77% | 1.78% | 3.34% | 5.00% | 1.97% | 0.22% |
| Net charge-offs | $ 6,548 | $ 4,305 | $ 10,009 | $ 19,462 | $ 29,831 | $ 12,095 | $ 1,341 |
| Non-performing assets: | |||||||
| Non-accrual loans and leases | $ 73,876 | $ 83,887 | $ 110,719 | $ 111,180 | $ 127,473 | $ 123,117 | $ 110,761 |
| Loans and leases 90 days past due | 18,268 | 24,226 | 25,085 | 19,001 | 15,491 | 16,004 | 9,545 |
| Restructured loans and leases | 1,199 | 1,199 | 682 | 3,549 | 395 | 395 | 395 |
| Other real estate owned, net | 10,011 | 8,730 | 6,796 | 7,464 | 6,873 | 6,829 | 5,094 |
| Other assets owned | 200 | -- | -- | -- | -- | -- | -- |
| Total non-performing assets | $ 103,554 | $ 118,042 | $ 143,282 | $ 141,194 | $ 150,232 | $ 146,345 | $ 125,795 |
| (1) Calculation utilizes average loans and leases, excluding residential mortgage loans held-for-sale. | |||||||
| Sandy Spring Bancorp, Inc. and Subsidiaries | ||||||
| CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES (Unaudited) | ||||||
| Three Months Ended September 30, | ||||||
| 2010 | 2009 | |||||
| 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 (3) | $ 466,437 | $ 6,081 | 5.23% | $ 460,772 | $ 6,795 | 5.90% |
| Residential construction loans | 87,522 | 964 | 4.37 | 123,892 | 1,583 | 5.07 |
| Commercial mortgage loans | 906,010 | 13,766 | 6.03 | 871,831 | 13,290 | 6.05 |
| Commercial construction loans | 96,502 | 880 | 3.62 | 191,021 | 1,330 | 2.76 |
| Commercial loans and leases | 272,353 | 3,737 | 5.45 | 327,569 | 4,428 | 5.37 |
| Consumer loans | 393,491 | 3,804 | 3.86 | 401,930 | 3,975 | 3.94 |
| Total loans and leases (2) | 2,222,315 | 29,232 | 5.23 | 2,377,015 | 31,401 | 5.25 |
| Taxable securities | 906,231 | 6,463 | 2.91 | 798,735 | 5,947 | 3.11 |
| Tax-exempt securities (4) | 151,944 | 2,931 | 7.03 | 157,615 | 3,145 | 7.07 |
| Interest-bearing deposits with banks | 78,355 | 61 | 0.31 | 35,880 | 23 | 0.25 |
| Federal funds sold | 1,913 | 1 | 0.18 | 1,578 | -- | 0.17 |
| Total interest-earning assets | 3,360,758 | 38,688 | 4.57 | 3,370,823 | 40,516 | 4.77 |
| Less: allowance for loan and lease losses | (71,059) | (60,342) | ||||
| Cash and due from banks | 44,806 | 44,500 | ||||
| Premises and equipment, net | 48,518 | 50,404 | ||||
| Other assets | 237,858 | 222,232 | ||||
| Total assets | $3,620,881 | $3,627,617 | ||||
| Liabilities and Stockholders' Equity | ||||||
| Interest-bearing demand deposits | $ 299,110 | 82 | 0.11% | $ 256,432 | 99 | 0.15% |
| Regular savings deposits | 166,989 | 41 | 0.10 | 153,903 | 56 | 0.14 |
| Money market savings deposits | 886,296 | 1,125 | 0.50 | 899,017 | 2,868 | 1.27 |
| Time deposits | 685,960 | 2,635 | 1.52 | 819,294 | 5,720 | 2.77 |
| Total interest-bearing deposits | 2,038,355 | 3,883 | 0.76 | 2,128,646 | 8,743 | 1.63 |
| Other borrowings | 88,308 | 61 | 0.27 | 96,342 | 87 | 0.36 |
| Advances from FHLB | 409,337 | 3,676 | 3.56 | 411,956 | 3,706 | 3.57 |
| Subordinated debentures | 35,000 | 248 | 2.84 | 35,000 | 247 | 2.82 |
| Total interest-bearing liabilities | 2,571,000 | 7,868 | 1.21 | 2,671,944 | 12,783 | 1.90 |
| Noninterest-bearing demand deposits | 568,835 | 532,462 | ||||
| Other liabilities | 25,945 | 31,640 | ||||
| Stockholders' equity | 455,101 | 391,571 | ||||
| Total liabilities and stockholders' equity | $3,620,881 | $3,627,617 | ||||
| Net interest income and spread | $ 30,820 | 3.36% | $ 27,733 | 2.87% | ||
| Less: tax-equivalent adjustment | 1,321 | 1,331 | ||||
| Net interest income | $ 29,499 | $ 26,402 | ||||
| Interest income/earning assets | 4.57% | 4.77% | ||||
| Interest expense/earning assets | 0.93 | 1.50 | ||||
| Net interest margin | 3.64% | 3.27% | ||||
|
(1) Tax-equivalent income has been adjusted using the combined marginal federal and state rate of 39.88% for 2010 and 2009. The annualized taxable-equivalent adjustments utilized in the above table to compute yields aggregated to $1.3 million and $1.3 million in 2010 and 2009, respectively. |
||||||
| (2) Non-accrual loans are included in the average balances. | ||||||
| (3) Includes residential mortgage loans held for sale. Home equity loans and lines are classified as consumer loans. | ||||||
| (4) Includes only investments that are exempt from federal taxes. | ||||||
| Sandy Spring Bancorp, Inc. and Subsidiaries | ||||||
| CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES (Unaudited) | ||||||
| Nine Months Ended September 30, | ||||||
| 2010 | 2009 | |||||
| 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 (3) | $ 465,393 | $ 18,989 | 5.44% | $ 473,406 | $ 21,020 | 5.92% |
| Residential construction loans | 87,616 | 3,044 | 4.65 | 150,345 | 5,833 | 5.19 |
| Commercial mortgage loans | 895,049 | 40,459 | 6.04 | 863,028 | 39,780 | 6.16 |
| Commercial construction loans | 114,450 | 2,657 | 3.10 | 210,594 | 4,712 | 2.99 |
| Commercial loans and leases | 294,506 | 11,434 | 5.19 | 342,691 | 13,866 | 5.41 |
| Consumer loans | 395,835 | 11,480 | 3.90 | 406,299 | 12,022 | 3.97 |
| Total loans and leases (2) | 2,252,849 | 88,063 | 5.22 | 2,446,363 | 97,233 | 5.31 |
| Taxable securities | 855,243 | 19,227 | 3.02 | 598,223 | 13,673 | 3.18 |
| Tax-exempt securities (4) | 159,281 | 8,269 | 6.92 | 158,716 | 9,023 | 7.17 |
| Interest-bearing deposits with banks | 83,351 | 158 | 0.25 | 57,864 | 112 | 0.26 |
| Federal funds sold | 1,814 | 2 | 0.17 | 2,207 | 3 | 0.21 |
| Total interest-earning assets | 3,352,538 | 115,719 | 4.61 | 3,263,373 | 120,044 | 4.92 |
| Less: allowance for loan and lease losses | (70,145) | (58,231) | ||||
| Cash and due from banks | 44,633 | 45,170 | ||||
| Premises and equipment, net | 48,876 | 50,904 | ||||
| Other assets | 243,100 | 217,214 | ||||
| Total assets | $3,619,002 | $3,518,430 | ||||
| Liabilities and Stockholders' Equity | ||||||
| Interest-bearing demand deposits | $ 288,637 | 256 | 0.12% | $ 251,257 | 326 | 0.17% |
| Regular savings deposits | 163,687 | 128 | 0.10 | 151,942 | 177 | 0.16 |
| Money market savings deposits | 892,838 | 4,006 | 0.60 | 809,442 | 8,690 | 1.44 |
| Time deposits | 727,980 | 9,351 | 1.72 | 833,955 | 18,925 | 3.03 |
| Total interest-bearing deposits | 2,073,142 | 13,741 | 0.89 | 2,046,596 | 28,118 | 1.84 |
| Other borrowings | 87,881 | 198 | 0.30 | 86,612 | 225 | 0.35 |
| Advances from FHLB | 410,523 | 10,949 | 3.57 | 412,195 | 11,005 | 3.57 |
| Subordinated debentures | 35,000 | 693 | 2.64 | 35,000 | 1,358 | 5.17 |
| Total interest-bearing liabilities | 2,606,546 | 25,581 | 1.31 | 2,580,403 | 40,706 | 2.11 |
| Noninterest-bearing demand deposits | 546,961 | 512,384 | ||||
| Other liabilities | 26,006 | 33,494 | ||||
| Stockholders' equity | 439,489 | 392,149 | ||||
| Total liabilities and stockholders' equity | $3,619,002 | $3,518,430 | ||||
| Net interest income and spread | $ 90,138 | 3.30% | $ 79,338 | 2.81% | ||
| Less: tax-equivalent adjustment | 3,484 | 3,463 | ||||
| Net interest income | $ 86,654 | $ 75,875 | ||||
| Interest income/earning assets | 4.61% | 4.92% | ||||
| Interest expense/earning assets | 1.02 | 1.67 | ||||
| Net interest margin | 3.59% | 3.25% | ||||
|
(1) Tax-equivalent income has been adjusted using the combined marginal federal and state rate of 39.88% for 2010 and 2009. The annualized taxable-equivalent adjustments utilized in the above table to compute yields aggregated to $3.5 million and $3.5 million in 2010 and 2009, respectively. |
||||||
| (2) Non-accrual loans are included in the average balances. | ||||||
| (3) Includes residential mortgage loans held for sale. Home equity loans and lines are classified as consumer loans. | ||||||
| (4) Includes only investments that are exempt from federal taxes. | ||||||