Sandy Spring Bancorp / SASR

About Sandy Spring Bancorp

17801 Georgia Ave., Olney, Md. 20832
www.sandyspringbank.com | 301-774-6400 | Founded: 1868

Industry: Banking | Category: Banks

After a "disappointing year" in 2004, a term used by Sandy Spring Bancorp executives, the bank bounced back in 2005.
During 2004, the bank was forced to quit a strategy that backfired when interest rates started to rise. The bank had been borrowing money for short terms at low rates from the Federal Home Loan Bank of Atlanta and investing the proceeds in longer-term bonds. Although that strategy reaped big profits when interest rates were at rock-bottom lows, it turned against the bank as rates rose in late 2003. So Sandy Spring cut its losses by prepaying $195 million in borrowings from the Federal Home Loan Bank, absorbing a $18.4 million hit to the bottom line mainly because of prepayment penalties.
Repairing the damage last year by aggressively pursuing growth in its loan portfolio, Sandy Spring saw its profits more than double. Net interest income increased by $14 million, or 19 percent, because of the rapid loan growth and early payoff of the Federal Home Loan Bank advances.
Moreover, the bank continued its expansion into other financial areas. It bought West Financial Services of McLean, a financial planning and investment management company with more than $550 million in assets under management. Moreover, the bank agreed in January to acquire Neff and Associates, an independent insurance agency in Ocean City that specializes in physician liability insurance.
The bank's image got a boost when its chairman and chief executive, Hunter R. Hollar, was elected in December as a director of the Federal Reserve Bank of Richmond.

President and CEO: Dan Schrider

CFO: Phil Mantua

2005 Financial Data

Net Income: $33,098,000
Asssets: $2,459,616,000 | Earnings Per Share: $2.24
Stockholder Equity: $217,883,000 | Annual Dividend: $0.84
Total employees: 658 | Local employees: 400