Sandy Spring Bancorp Inc Reports Third Quarter Financial Results
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Sandy Spring Bancorp, Inc. Reports Third Quarter Financial Results
Sandy Spring Bancorp, Inc. (Nasdaq-SASR), the parent company of Sandy Spring Bank, released its financial results for the quarter ended September 30, 2024.
Key Financial Metrics
| Metric | Q3 2024 | Q2 2024 | Q3 2023 | YoY Change | QoQ Change | Consensus Estimate |
|---|---|---|---|---|---|---|
| Revenue | $87.1 million | - | - | - | - | $88.49 million |
| Net Income | $16.2 million | $22.8 million | $20.7 million | -22% | -29% | - |
| EPS (Diluted) | $0.36 | $0.51 | $0.46 | -22% | -29% | $0.46 |
| Core Earnings | $17.9 million | $24.4 million | $27.8 million | -36% | -27% | - |
The company's financial performance weakened year-over-year and quarter-over-quarter, largely due to increased provisions for credit losses and higher non-interest expenses. Revenue fell short of consensus estimates, as did earnings per share.
Segment Revenue Performance
| Segment | Q3 2024 Revenue | Comparison to Guidance |
|---|---|---|
| Net Interest Income | $65.2 million | - |
| Non-interest Income | $21.9 million | Higher than guidance |
Sandy Spring Bancorp saw a marginal growth in non-interest income driven by wealth management and credit-related fees, but this was offset by a decrease in bank-owned life insurance income.
Key Developments and Operational Highlights
- Total assets increased by 3% to $14.4 billion.
- Total loans remained stable at $11.5 billion, with growth in AD&C and commercial business loans.
- Deposits increased by $397.5 million, with significant growth in interest-bearing deposits.
- The ratio of non-performing loans to total loans rose to 1.09% from 0.81% in the prior quarter.
- Net interest margin compressed slightly, affected by higher interest expense.
Comments from Company Officers
Daniel J. Schrider, Chair, President & CEO, noted the ongoing success with core deposit strategies and wealth management services. The wealth management teams have delivered strong fee income results and continue to gain referrals from existing clients.
Stock Price Movement
Post-earnings, Sandy Spring Bancorp’s stock price increased by approximately 4.12%, reflecting positive market reception to the financial report and strategic comments.
In conclusion, Sandy Spring Bancorp has experienced challenges this quarter, impacted by heightened provisions for credit losses and increased competitive pressures. However, the bank remains focused on leveraging its strong capital position and expanding its wealth management operations.
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