Sandy Spring Bancorp (SASR) Q4 2024 earnings summary

Executive summary

• Reported net loss of $39.5 million ($0.87 per diluted share) for Q4 2024, driven by a $54.4 million non-cash goodwill impairment charge related to the pending merger with Atlantic Union Bankshares Corporation (AUB).

• Core earnings (excluding non-recurring items) were $21.0 million ($0.47 per diluted share), up from $17.9 million in Q3 2024 but down from $27.1 million in Q4 2023.

• Net interest margin improved to 2.53% from 2.44% in Q3 2024 and 2.45% in Q4 2023.

• Total assets decreased 2% sequentially to $14.1 billion, mainly due to a reduction in FHLB advances and cash balances.

Financial highlights

• Net interest income rose 6% sequentially and 5% year-over-year to $86.1 million.

• Non-interest income increased 10% from Q3 2024 and 31% year-over-year, aided by one-time mortality proceeds from bank-owned life insurance and higher swap fees.

• Non-interest expense doubled year-over-year to $134.2 million, primarily due to the goodwill impairment; adjusted non-interest expense (excluding impairment) was $79.8 million, up 9% sequentially.

• Provision for credit losses was $4.5 million, down from $6.3 million in Q3 2024 but up from a $3.4 million credit in Q4 2023.

• Total loans stable at $11.5 billion; total deposits steady at $11.7 billion, with a shift from noninterest-bearing to interest-bearing accounts.

Outlook and guidance

• Management remains focused on improving net interest margin, growing core earnings, and reducing brokered deposits.

• Pending merger with AUB is expected to impact future results, with risks related to regulatory approvals and integration.