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Sandy Spring Bancorp (SASR)
NASDAQ:SASR
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Sandy Spring Bancorp
(NASDAQ:SASR)
57Neutral
Sandy Spring Bancorp (SASR) vs. S&P 500 (SPY)
Market Cap
$1.29B
Dividend Yield4.76%
Average Volume (3M)244.35K
Price to Earnings (P/E)65.0
Beta (1Y)1.24
Revenue Growth6.67%
EPS Growth-83.79%
CountryUS
Employees1,151
SectorFinancial
Sector Strength77
IndustryBanking
Share Statistics
EPS (TTM)0.44
Shares Outstanding45,140,415
10 Day Avg. Volume273,593
30 Day Avg. Volume244,351
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)3.18
Price to Cash Flow (P/CF)10.60
P/FCF Ratio2.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering1
Sandy Spring Bancorp Business Overview & Revenue Model
Company DescriptionSandy Spring Bancorp, Inc. is a bank holding company, which engages in the provision of commercial banking, retail banking, and trust services to individuals and businesses. It operates through the following segments: Community Banking, Insurance, and Investment Management. The Community Banking segment conducts its operations through Sandy Spring Bank and involves delivering financial products and services, including various loan and deposit products to both individuals and businesses. The Insurance segment includes operations through Sandy Spring Insurance Corp, a subsidiary of the bank, and offers annuities as an alternative to traditional deposit accounts. The Investment Management segment conducts its operations through West Financial Services, Inc., a subsidiary of the Bank. The company was founded in 1868 and is headquartered in Olney, MD.
How the Company Makes MoneySandy Spring Bancorp generates revenue primarily through the interest income earned on loans and investments, which is the difference between the interest received on loans and the interest paid on deposits (known as the net interest margin). The company also earns non-interest income through fees and service charges associated with deposit accounts, loan origination, and other financial services. Additionally, Sandy Spring Bancorp benefits from wealth management services, which include investment advisory and trust services, contributing to its non-interest revenue. Partnerships with other financial institutions and strategic acquisitions may also play a role in expanding its revenue base and market reach.
Sandy Spring Bancorp Financial Statement Overview
Summary
Sandy Spring Bancorp shows solid financial stability with strong margins and no current debt, enhancing its risk profile. However, declining net profit margin and ROE suggest challenges in profitability and earnings efficiency. The cash flow position is stable but indicates potential limitations in liquidity for future growth.Income Statement
Sandy Spring Bancorp's income statement shows a mixed performance. The revenue growth rate is inconsistent, with a decline in the latest year. Gross and EBIT margins are strong at 95.9% and 96.0% respectively, indicating efficient cost management. However, net profit margin has decreased significantly to 3.0%, suggesting challenges in profitability.65
Positive
Balance Sheet
The company has a strong balance sheet with no current debt, improving its risk profile. The equity ratio of 11.0% suggests moderate leverage, which is typical for the banking industry. Return on equity is low at 1.3%, indicating room for improved earnings efficiency.78
Positive
Cash Flow
Cash flow analysis reveals stable operating cash flow with a positive free cash flow growth rate. The operating cash flow to net income ratio is robust, highlighting strong cash generation relative to earnings. However, the free cash flow to net income ratio is lower, implying potential constraints on cash available for growth or shareholder returns.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 672.27M | 419.34M | 497.51M | 526.57M | 465.88M | Gross Profit |
| 672.27M | 419.34M | 497.51M | 526.57M | 465.88M | EBIT |
| 645.70M | 164.13M | 291.02M | 311.66M | 124.42M | EBITDA |
| 0.00 | 0.00 | 234.26M | 326.18M | 144.30M | Net Income Common Stockholders |
| 19.93M | 122.84M | 166.30M | 235.11M | 96.95M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 80.70M | 1.22B | 1.41B | 1.89B | 1.64B | Total Assets |
| 14.13B | 14.03B | 13.83B | 12.59B | 12.80B | Total Debt |
| 621.40M | 920.80M | 920.21M | 172.71M | 606.16M | Net Debt |
| 102.44M | 375.15M | 728.17M | -247.00M | 309.45M | Total Liabilities |
| 12.57B | 12.44B | 12.35B | 11.07B | 11.33B | Stockholders Equity |
| 1.56B | 1.59B | 1.48B | 1.52B | 1.47B |
| Cash Flow | Free Cash Flow | |||
| 67.56M | 123.83M | 201.73M | 204.91M | 136.94M | Operating Cash Flow |
| 83.71M | 137.81M | 216.32M | 216.40M | 141.98M | Investing Cash Flow |
| -190.31M | 178.94M | -1.62B | 308.26M | -1.20B | Financing Cash Flow |
| 79.67M | 36.91M | 1.18B | -401.64M | 1.21B |
Sandy Spring Bancorp Technical Analysis
Negative
28.80
Price Trends
32.50
Negative
33.87
Negative
30.63
Negative
Market Momentum
-1.15
Positive
25.24
Positive
5.53
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SASR, the sentiment is Negative. The current price of 28.8 is below the 20-day moving average (MA) of 31.55, below the 50-day MA of 32.50, and below the 200-day MA of 30.63, indicating a bearish trend. The MACD of -1.15 indicates Positive momentum. The RSI at 25.24 is Positive, neither overbought nor oversold. The STOCH value of 5.53 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SASR.
Sandy Spring Bancorp Risk Analysis
Sandy Spring Bancorp disclosed 54 risk factors in its most recent earnings report. Sandy Spring Bancorp reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Sandy Spring Bancorp Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $839.38M | 10.60 | 9.62% | 2.71% | 17.70% | 3.88% | |
64 Neutral | $13.79B | 10.52 | 9.20% | 4.24% | 17.25% | -7.60% | |
62 Neutral | $3.14B | 11.10 | 9.69% | 4.00% | 21.10% | -4.20% | |
61 Neutral | $4.87B | 12.37 | 7.62% | 4.35% | 6.80% | 1.48% | |
59 Neutral | $615.86M | ― | -3.76% | 3.82% | 9.77% | -147.04% | |
57 Neutral | $1.29B | 64.98 | 1.27% | 4.76% | 6.67% | -83.79% | |
54 Neutral | $562.09M | 12.16 | -5.77% | 7.68% | -14.04% | -155.40% |
* Financial Sector Average
Performance Comparison
SASR
Sandy Spring Bancorp
28.80
8.12
39.26%
EGBN
Eagle Bancorp
20.67
-0.90
-4.17%
FULT
Fulton Financial
17.65
3.01
20.56%
UBSI
United Bankshares
34.22
0.94
2.82%
WASH
Washington Bancorp
29.63
5.72
23.92%
FMBH
First Mid-Illinois Bancshares
35.14
5.36
18.00%
Sandy Spring Bancorp Earnings Call Summary
Earnings Call Date: Jan 28, 2025 | % Change Since: -13.77% | Next Earnings Date: Apr 17, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted a successful merger announcement with Sandy Spring Bancorp and strong financial performance, but also addressed challenges such as flat loan growth and margin compression. The strategic moves, including the CRE loan sale, are intended to position the bank for future growth.Highlights
Merger with Sandy Spring Bancorp
Atlantic Union Bankshares announced a merger with Sandy Spring Bancorp, creating a $39 billion asset bank, making it the largest regional bank in the Mid-Atlantic.
Strong Financial Performance
Atlantic Union reported adjusted operating earnings of $74.5 million, up 32.3% from the second quarter of 2024, and a 24.7% increase from the third quarter of 2023.
Improved Asset Quality
Annualized net charge-offs were reduced to 1 basis point in Q3 from 4 basis points in Q2, indicating strong asset quality.
Deposit Growth
Deposit base grew by 6.1% on a linked quarter annualized basis, showing strong customer retention and growth.
Cost Savings from Merger
The merger is expected to achieve cost savings of approximately 27% of Sandy Spring's annual operating expenses.
Lowlights
Flat Loan Growth
Linked-quarter annualized loan growth was relatively flat, ending down 0.2% due to clients waiting for Federal Reserve rate cuts and increased commercial real estate payoffs.
Net Interest Margin Compression
Tax equivalent net interest margin decreased by 8 basis points to 3.38% from the previous quarter due to higher deposit costs and lower loan accretion income.
CRE Loan Sale Impact
Atlantic Union plans to sell up to $2 billion in acquired commercial real estate loans, which is expected to impact book value and earnings due to the discount from market sales.
Impact of Rate Cuts
The lower level of net interest income and net interest margin is due to a more aggressive 50 basis point decline in the Fed funds rate, impacting yields on new and renewed loans.
Company Guidance
During the SASR Q3 2024 earnings call, Atlantic Union Bankshares announced the merger with Sandy Spring Bancorp, creating a formidable franchise with a combined asset base of $39 billion. The guidance highlighted a notable financial performance, with a 6.1% annualized growth in deposits and relatively flat loan growth, ending down 0.2% due to anticipated Federal Reserve rate cuts. The quarter saw an annualized net charge-off of 1 basis point, indicating strong asset quality. Atlantic Union reported an adjusted operating return on tangible common equity of 19.2% and a return on assets of 1.25%. The efficiency ratio remained steady at 52.2%, with adjusted operating earnings per share rising to $0.83. The transaction expects 23% EPS accretion and a 2.0-year tangible book value earn-back period, with an internal rate of return of 20%, positioning the combined entity for robust profitability and growth.Sandy Spring Bancorp Corporate Events
Executive/Board ChangesM&A Transactions
Sandy Spring Bancorp Merges with Atlantic Union Bankshares
Neutral
Jan 2, 2025
Sandy Spring Bancorp has entered into a merger agreement with Atlantic Union Bankshares Corporation, where Sandy Spring will merge into Atlantic Union. As part of the merger process, Sandy Spring has made several compensatory adjustments for its executives to mitigate potential taxes under Section 280G of the Internal Revenue Code. The company has accelerated the payment, vesting, and grant of certain equity and cash-based awards for its executives, aiming to preserve tax benefits and reduce tax burdens for impacted executives.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.