Sandy Spring Bancorp(US:SASR)2024-07-23 12:24Financial Performance - Core earnings for the second quarter of 2024 were $24.4 million ($0.54 per diluted common share), up from $21.9 million ($0.49 per diluted common share) in the previous quarter and down from $27.1 million ($0.60 per diluted common share) in the same quarter last year[1]. - The net income for the quarter was $22.8 million, or $0.51 per diluted common share, compared to $20.4 million, or $0.45 per diluted common share in the previous quarter[37]. - Net income (GAAP) for Q2 2024 was $22,807,000, a decrease of 7.8% from $24,745,000 in Q2 2023[51]. - The company recorded a decline in year-to-date net income to $43.2 million for the six months ended June 30, 2024, down from $76.0 million for the same period in the prior year[42]. - Core earnings (non-GAAP) for the three months ended June 30, 2024, were $24,400,000, a decrease of 10.1% from $27,136,000 in the same period of 2023[62]. - Net income (GAAP) for the six months ended June 30, 2024, was $43,179,000, down 43.1% from $75,998,000 in the same period of 2023[62]. Asset and Deposit Growth - Total assets increased by 1% to $14.0 billion as of June 30, 2024, compared to $13.9 billion at March 31, 2024[4]. - Total deposits rose by $113.0 million or 1% to $11.3 billion at June 30, 2024, driven entirely by noninterest-bearing deposits, which increased by $113.5 million[5]. - Total assets as of June 30, 2024, were $14,008,343,000, slightly down from $14,028,172,000 at the end of 2023[52]. - Total deposits rose to $11,340,228,000 in Q2 2024, up from $10,996,538,000 in December 2023, marking an increase of 3.1%[52]. - Total stockholders' equity reached $1,599,004,000 as of June 30, 2024, up from $1,588,142,000 at the end of 2023[52]. Loan Performance - Total loans increased by $119.6 million or 1% to $11.5 billion as of June 30, 2024, with significant growth in AD&C and commercial business loans[27]. - The ratio of non-performing loans to total loans was 0.81% at June 30, 2024, compared to 0.74% at March 31, 2024[28]. - Total loans increased to $11,483,921 thousand in Q2 2024, up from $11,364,284 thousand in Q1 2024, representing a growth of 1.05%[70]. - Total commercial loans reached $9,383,816 thousand with an annualized average yield of 5.51%, up from $9,418,365 thousand at 5.23% in 2023[75]. - Total residential mortgage loans increased to $1,518,748 thousand with an annualized average yield of 3.67%, compared to $1,353,809 thousand at 3.53% in 2023[75]. Income and Expense Analysis - Net interest income for the second quarter of 2024 grew by $0.9 million or 1% compared to the previous quarter but decreased by $10.2 million or 11% compared to the second quarter of 2023[6]. - Non-interest income increased by 7% or $1.2 million compared to the previous quarter and grew by 14% or $2.4 million compared to the prior year quarter[8]. - Non-interest expense (GAAP) was $68,104,000 in Q2 2024, a slight decrease from $69,136,000 in Q2 2023[51]. - Interest expense increased significantly to $84,828 thousand in Q2 2024, up 25.4% from $67,679 thousand in Q2 2023[53]. - The GAAP efficiency ratio was 68.19% for the second quarter of 2024, compared to 69.60% for the first quarter of 2024 and 64.22% for the second quarter of 2023[32]. Credit Quality and Provisions - The provision for credit losses was $1,020 thousand in Q2 2024, a decrease from $5,055 thousand in Q2 2023[53]. - The provision for credit losses for the six months ended June 30, 2024, was $3.4 million, a significant decrease from a credit of $16.5 million in the same period of 2023[55]. - Non-accrual loans increased to $92,650,000 as of June 30, 2024, up from $84,081,000 in the previous quarter, representing a 1.8% increase[72]. - The balance of the allowance for credit losses at the end of the period was $125,863,000, up from $123,096,000 in the previous quarter, an increase of 2.2%[72]. - Net charge-offs for the quarter were $194,000, a significant decrease from $1,100,000 in the previous quarter, showing improved asset quality[72].