SASR Earnings Prediction
The chart below shows how SASR performed 10 days before and after its earnings report, based on data from the past quarters. Typically, SASR sees a -1.06% change in stock price 10 days leading up to the earnings, and a -1.16% change 10 days following the report. On the earnings day itself, the stock moves by -1.42%. This data can give you a slight idea of what to expect for the next quarter's release.
SASR Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
95.75M
-8.27%
1.96%
Gross Margin
--
--
--
Operating Margin
32.11%
0.19%
10.38%
Net Margin
23.82%
0.46%
9.82%
EPS
0.51
-7.27%
13.33%
No Data Available
SASR Earnings Analysis
Sandy Spring Bancorp, Inc. Corporation (SASR.O) Earnings Conference Call
Positive
Sandy Spring Bancorp successfully grew core deposits and CI loans while improving the net interest margin, resulting in an increase in net income and core earnings compared to the previous quarter.
Net income for the second quarter was $22.8 million, or $0.51 per diluted common share, compared to $20.4 million in the first quarter.
Core earnings for the current quarter were $24.4 million, or $0.54 per diluted common share, compared to $21.9 million in the previous quarter.
Second quarter results benefited from a lower provision for credit losses and improved net interest income, with the provision for credit losses directly attributable to funded loan growth declining to $1 million from $2.4 million for the first quarter of this year.
Provision for credit losses mainly reflected higher individual reserves on collateral-dependent loans, overall growth of the loan portfolio, and lower qualitative adjustments due to the reduction in commercial real estate loans.
Total assets increased to $14 billion at the end of the second quarter, with total deposits growing by $113 million or 1% to $11.3 billion at June 30 compared to the previous quarter.
Core deposits represented 94% of total deposits at the end of the quarter.
Total uninsured deposits were approximately 36% of total deposits, with contingent liquidity totaling $6.3 billion or 154% of uninsured deposits.
Non-interest income for the second quarter increased by 7% compared to the linked quarter, with growth in wealth management income and mortgage banking revenue.
Wealth management income accounted for approximately 54% of the bank's total non-interest income.
Expectations for mortgage banking revenue for the third quarter of 2024 are in the range of $1 million to $1.5 million.
The net interest margin improved to 2.46% for the second quarter of 2024 compared to 2.41% for the first quarter, driven by a two basis point increase in the yield on interest-earning assets and a 3 basis point decline in the rate paid on interest-bearing liabilities.
The margin is expected to expand throughout the remainder of 2024 by two basis points to four basis points per quarter.
Sandy Spring Bancorp remains focused on improving profitability, bolstering core funding, managing expenses, enhancing credit portfolio management, and reducing commercial real estate exposure, with a commitment to innovation and performance to better serve clients.
The company's stability and positive momentum are evident, with plans to expand capabilities and offerings to increase market share in the Greater Washington, D.C. metro area.
Negative
**
- Net income of $22.8 million for the second quarter decreased from $24.7 million for the same quarter last year, and core earnings also decreased from $27.1 million to $24.4 million.
- Level of nonperforming loans to total loans increased from 74 basis points to 81 basis points at the end of the second quarter, with nonperforming loans totaling $93 million.
- Provision for credit losses increased to $4 million for the second quarter of 2024 compared to $2.4 million for the first quarter.
- Commercial business loans and lines grew by $91.9 million or 6%, while commercial investor real estate segment declined by $64.5 million or 1%.
- Higher individual reserves on collateral-dependent loans and increase in criticized loans across various portfolios raised concerns about credit quality.
SASR FAQs
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SASR Earning Call Sentiment
Sandy Spring Bancorp, Inc. (SASR) Q2 2024 Earnings Call Transcript
1.0x
00:00
00:00
SASR.O
0.73%Positive
The earnings call revealed mixed signals. Financial performance showed modest growth with increased net income and deposits, but there were notable concerns such as increased nonperforming loans and lack of a shareholder return plan. The Q&A section highlighted uncertainties about deposit costs and repricing opportunities. While optimistic guidance was given, it was not strongly supported by clear evidence of significant growth catalysts. The market cap suggests moderate sensitivity to these factors, leading to a neutral prediction for stock price movement.
