Sandy Spring Bancorp Inc. (SASR, Financial) filed Quarterly Report for the period ended 2011-03-31.
Sandy Spring Bancorp Inc. has a market cap of $421.1 million; its shares were traded at around $17.51 with a P/E ratio of 16.7 and P/S ratio of 2.2. The dividend yield of Sandy Spring Bancorp Inc. stocks is 1.8%.
Non-interest income decreased by 8% to $10.0 million for the quarter compared to the prior year first quarter. This decrease was primarily the result of a $0.8 million decrease in insurance agency commission revenue due to the timing of the recognition of renewal premiums that was implemented in the first quarter of 2010. In addition, service charges on deposits also declined $0.4 million as a result of the impact of recently enacted legislation on overdraft fees. Somewhat offsetting these decreases, trust and investment management fees increased $0.3 million or 14% primarily due to higher assets under management as clients redeployed funds into improving equity markets. Fees on sales of investment products increased $0.1 million or 16% due to an increase in managed assets and higher sales of financial products.
Non-performing assets declined slightly to $96.3 million at March 31, 2011 compared to $97.7 million at December 31, 2010. Non-performing assets represented 2.71% of total assets at March 31, 2011 compared to 2.78% at December 31, 2010. The ratio of annualized net charge-offs to average loans and leases was .89% during the first quarter of 2011, compared to 1.37% for the fourth quarter of 2010.
The general reserve comprised 92% of the total allowance at March 31, 2011 and 94% at December 31, 2010. The general reserve is calculated in two parts based on an internal risk classification of loans within each portfolio segment. Reserves on loans considered to be “classified” under regulatory guidance are calculated separately from loans considered to be “pass” rated under the same guidance. This segregation allows the Company to monitor the reserves applicable to higher risk loans separate from the remainder of the portfolio in order to better manage risk and ensure the sufficiency of reserves.
These factors combine to estimate the probability and severity of potential losses. At March 31, 2011, the specific allowance accounted for 8% of the total allowance as compared to 6% at December 31, 2010. The severity of estimated losses on impaired loans can differ substantially from actual losses.
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Sandy Spring Bancorp Inc. has a market cap of $421.1 million; its shares were traded at around $17.51 with a P/E ratio of 16.7 and P/S ratio of 2.2. The dividend yield of Sandy Spring Bancorp Inc. stocks is 1.8%.
Highlight of Business Operations:
Comparing March 31, 2011 balances to December 31, 2010, total assets decreased 1% to $3.5 billion. Loan balances remained virtually level compared to the prior year-end due to a decrease of 5% in consumer loans, which was partially offset by an increase of 1% in total commercial loans, while residential mortgage and construction loans remained unchanged. Customer funding sources, which include deposits plus other short-term borrowings from core customers, increased 1% compared to balances at December 31, 2010. This increase was due primarily to increases of 9% in noninterest-bearing deposits and 3% in regular savings and interest bearing checking accounts. These increases were partially offset by anticipated declines of 2% in certificates of deposit and 1% in money market accounts as clients redeployed funds to emphasize liquidity in anticipation of possible rising rates and improving equity markets. During the same period, stockholders equity increased to $409.1 million or 12% of total assets due to net income for the quarter, which was somewhat offset by the redemption of the warrant issued under the TARP Capital Purchase Program.Non-interest income decreased by 8% to $10.0 million for the quarter compared to the prior year first quarter. This decrease was primarily the result of a $0.8 million decrease in insurance agency commission revenue due to the timing of the recognition of renewal premiums that was implemented in the first quarter of 2010. In addition, service charges on deposits also declined $0.4 million as a result of the impact of recently enacted legislation on overdraft fees. Somewhat offsetting these decreases, trust and investment management fees increased $0.3 million or 14% primarily due to higher assets under management as clients redeployed funds into improving equity markets. Fees on sales of investment products increased $0.1 million or 16% due to an increase in managed assets and higher sales of financial products.
Non-performing assets declined slightly to $96.3 million at March 31, 2011 compared to $97.7 million at December 31, 2010. Non-performing assets represented 2.71% of total assets at March 31, 2011 compared to 2.78% at December 31, 2010. The ratio of annualized net charge-offs to average loans and leases was .89% during the first quarter of 2011, compared to 1.37% for the fourth quarter of 2010.
The general reserve comprised 92% of the total allowance at March 31, 2011 and 94% at December 31, 2010. The general reserve is calculated in two parts based on an internal risk classification of loans within each portfolio segment. Reserves on loans considered to be “classified” under regulatory guidance are calculated separately from loans considered to be “pass” rated under the same guidance. This segregation allows the Company to monitor the reserves applicable to higher risk loans separate from the remainder of the portfolio in order to better manage risk and ensure the sufficiency of reserves.
These factors combine to estimate the probability and severity of potential losses. At March 31, 2011, the specific allowance accounted for 8% of the total allowance as compared to 6% at December 31, 2010. The severity of estimated losses on impaired loans can differ substantially from actual losses.
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