Sandy Spring Bancorp Inc. Reports Operating Results (10-Q)
Sandy Spring Bancorp Inc. has a market cap of $396.47 million; its shares were traded at around $16.53 with and P/S ratio of 1.98. The dividend yield of Sandy Spring Bancorp Inc. stocks is 0.24%.SASR is in the portfolios of Columbia Wanger of Columbia Wanger Asset Management, Arnold Schneider of Schneider Capital Management.
Highlight of Business Operations:The Company's total assets were $3.7 billion at June 30, 2010, increasing $70.7 million or 2% during the first six months of 2010. Earning assets increased by 3% or $93.1 million in the first six months of the year to $3.4 billion at June 30, 2010. These increases were due primarily to the proceeds from the Company s public stock offering during the first quarter, which was somewhat offset by the decline in loans.
Total loans and leases, excluding loans held for sale, decreased $79.2 million or 3% during the first six months of 2010 to $2.2 billion. Residential real estate loans, comprised of residential construction and permanent residential mortgage loans, decreased $4.8 million or 1%, to $544.9 million at June 30, 2010. Residential construction loans declined to $86.4 million in 2010, a decrease of $5.9 million or 6% reflecting greatly reduced demand as a result of the regional economic conditions. Permanent residential mortgages, most of which are 1-4 family, showed a small increase of $1.1 million to $458.5 million at June 30, 2010.
The Company's commercial real estate loans consist of owner occupied properties (61%) where an established banking relationship exists or, to a lesser extent, involves investment properties (39%) for warehouse, retail, and office space with a history of occupancy and cash flow. Commercial mortgages increased $5.4 million or 1% during 2010, to $900.3 million at June 30, 2010. Commercial construction loans decreased $36.4 million or 28% during 2010, to $95.4 million at June 30, 2010. Other commercial loans decreased $32.3 million or 11% during 2010 to $263.9 million at quarter-end. This decrease was due primarily to the lower level of loan demand and more conservative underwriting.
The Company's equipment leasing business provides leases for essential commercial equipment used by small to medium sized businesses. Equipment leasing is conducted through vendor relations and direct solicitation to end-users located primarily in states along the east coast from New Jersey to Florida. The typical lease is “small ticket” by industry standards, averaging less than $100 thousand, with individual leases generally not exceeding $500 thousand. The leasing portfolio decreased $4.9 million or 19% over the first six months of the year to $20.8 million at June 30, 2010 due in large part to market conditions and their effect on small and medium-sized businesses.
Consumer lending continues to be an integral part of the Company s full-service, community banking business. This category of loans includes primarily home equity loans and lines of credit. The consumer loan portfolio decreased 2% or $6.1 million, to $393.6 million at June 30, 2010. This decline was driven largely by a decrease of $3.6 million or 9% in installment loans during 2010 to $34.6 million at quarter-end. Home equity lines and loans remained virtually even with the prior year-end at $351.9 million at June 30, 2010.
At June 30, 2010 the Company owned a total of $3.0 million in securities backed by single issuer trust preferred securities issued by banks. The fair value of $3.3 million of such securities was determined using broker quotations. The Company also owns pooled trust preferred securities, which total $4.6 million, with a fair value of $3.8 million, which are backed by trust preferred securities issued by banks, thrifts, and insurance companies. These particular securities continued to exhibit limited activity due to the status of the economy from December 31, 2009 through June 30, 2010. There are currently very few market participants who are willing and or able to transact for these securities.
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