Sandy Spring Bancorp(SASR) - 2024 Q3 - Quarterly Results

Financial Performance - Net income for the third quarter of 2024 was $16.2 million ($0.36 per diluted common share), down from $22.8 million ($0.51 per diluted common share) in the previous quarter and $20.7 million ($0.46 per diluted common share) in the same quarter last year[1][18] - Core earnings for the current quarter were $17.9 million ($0.40 per diluted common share), compared to $24.4 million ($0.54 per diluted common share) in the previous quarter and $27.8 million ($0.62 per diluted common share) in the third quarter of 2023[2][18] - Year-to-date net income for the nine months ended September 30, 2024, was $59.4 million, a decline from $96.7 million for the same period in the prior year[26] - Net income attributable to common shareholders decreased by 22% to $16,205,000 for the three months ended September 2024, compared to $20,719,000 for the same period in 2023[38] - Net income (GAAP) for Q3 2024 was $16,209,000, a decrease of 22.4% from $20,746,000 in Q3 2023[40] - Core earnings (non-GAAP) for Q3 2024 were $17,936,000, down 35.4% from $27,766,000 in Q3 2023[40] Asset and Loan Growth - Total assets increased by 3% to $14.4 billion at September 30, 2024, compared to $14.0 billion at June 30, 2024[3][12] - Total assets as of September 30, 2024, were $14,383,073,000, an increase from $14,135,085,000 in the previous year[41] - Total loans remained stable at $11.5 billion as of September 30, 2024, with increases in AD&C and commercial business loans of $71.3 million (6%) and $19.4 million (1%), respectively[4][12] - Total loans for Q3 2024 reached $11,491,921, a slight increase from $11,483,921 in Q2 2024[45] - Net loans rose to $11,360,493 thousand, compared to $11,246,124 thousand at the end of 2023, reflecting an increase of 1.0%[42] Deposit Trends - Deposits increased by $397.5 million or 4% to $11.7 billion at September 30, 2024, with interest-bearing deposits growing by $425.8 million (5%)[5][13] - Total deposits increased to $11,737,694 in Q3 2024, up from $11,340,228 in Q2 2024, representing a growth of about 3.5%[45] - Total deposits reached $11,737,694 thousand, an increase of 6.7% from $10,996,538 thousand at December 31, 2023[42] Credit Quality and Loss Provisions - The ratio of non-performing loans to total loans was 1.09% at September 30, 2024, up from 0.81% at June 30, 2024 and 0.46% at September 30, 2023[6][16] - The total provision for credit losses was $6.3 million for the third quarter of 2024, significantly higher than $1.0 million in the previous quarter and $2.4 million in the same quarter last year[8][21] - Provision for credit losses increased significantly by 167% to $6,316,000 for the three months ended September 2024, compared to $2,365,000 for the same period in 2023[38] - The allowance for credit losses on loans increased to $131,428 thousand as of September 30, 2024, compared to $120,865 thousand at December 31, 2023, indicating a rise of 8.7%[42] Income and Expense Analysis - Net interest income for the third quarter of 2024 grew by $1.1 million (1%) compared to the previous quarter but decreased by $3.7 million (4%) compared to the third quarter of 2023[6][19] - Non-interest income increased by 1% ($0.1 million) compared to the linked quarter and grew by 13% ($2.3 million) compared to the prior year quarter[9][22] - Non-interest expense for Q3 2024 increased by $4.8 million or 7% compared to Q2 2024, and by $0.5 million or 1% compared to Q3 2023, primarily due to a $3.2 million increase in salaries and benefits[23] - The GAAP efficiency ratio for Q3 2024 was 72.12%, up from 68.19% in Q2 2024 and 70.72% in Q3 2023, reflecting a 1% decline in GAAP revenue[24] - Non-interest expense for the nine months ended September 30, 2024, was $209.0 million, slightly up from $207.9 million in 2023, with significant increases in professional fees and services[30] Return Metrics - Return on Assets (ROA) for Q3 2024 was 0.46%, down from 0.66% in Q2 2024 and 0.58% in Q3 2023[25] - Return on average assets declined to 0.46% for the three months ended September 2024, down from 0.58% for the same period in 2023[38] - Core return on average tangible common equity (non-GAAP) was 5.88% in Q3 2024, compared to 9.51% in Q3 2023, a decrease of 38.5%[40] Capital and Equity - Book value per common share increased by 5% to $36.10 as of September 30, 2024, compared to $34.26 as of September 30, 2023[38] - Total stockholders' equity increased to $1,628,837 thousand as of September 30, 2024, from $1,588,142 thousand at December 31, 2023, reflecting a growth of 2.6%[42] - Tangible common equity ratio improved to 8.83% in Q3 2024 from 8.42% in Q3 2023[41] Mergers and Acquisitions - The company has entered into a merger agreement with Atlantic Union Bankshares Corporation, leading to the cancellation of the scheduled conference call[34]