Sandy Spring Bancorp, Inc. reported its financial results for the third quarter and nine months ended September 30, 2024, highlighting a mixed performance amid changing market conditions. Total assets increased to $14.4 billion, up from $14.0 billion at the end of 2023, driven by a rise in total loans and deposits. Total loans reached $11.5 billion, reflecting a modest increase of $124.9 million or 1% from the previous quarter, with notable growth in commercial acquisition, development, and construction (AD&C) loans.

Net income for the third quarter of 2024 was $16.2 million, a decline from $20.7 million in the same period last year. This decrease was attributed to a higher provision for credit losses, which rose to $6.3 million from $2.4 million in Q3 2023, and a decrease in net interest income, which fell by $3.7 million (4%) year-over-year. The net interest margin also contracted to 2.44% from 2.55% in Q3 2023, reflecting increased funding costs.

For the nine months ended September 30, 2024, net income totaled $59.4 million, down from $96.7 million in the same period of 2023. Core earnings also decreased significantly, from $107.2 million to $64.3 million. The decline in profitability was influenced by a combination of rising interest expenses and increased non-interest expenses, which grew by 4% year-over-year.

Total deposits increased by $741.2 million (7%) to $11.7 billion, with interest-bearing deposits rising by 9%. The loan-to-deposit ratio improved to 98% from 103% at the end of 2023, indicating a stronger liquidity position. However, non-performing loans increased to $125.3 million, representing 1.09% of total loans, up from 0.81% at the end of 2023.

Strategically, Sandy Spring Bancorp announced a merger agreement with Atlantic Union Bankshares Corporation, expected to close in the third quarter of 2025. This merger will see Bancorp merge into Atlantic Union, with each share of Bancorp common stock converting into 0.900 shares of Atlantic Union common stock.

The company’s capital ratios remained robust, with a total risk-based capital ratio of 15.53% as of September 30, 2024, up from 14.85% a year earlier. The allowance for credit losses increased to $131.4 million, reflecting a proactive approach to managing credit risk amid economic uncertainties.