Sandy Spring Bancorp loses $4.4M in 4th quarter

Posted: 1:56 pm Thu, January 28, 2010
By Danielle Ulman
Daily Record Business Writer

Hampered by the troubled housing market, Maryland’s largest independent community bank lost $4.4 million in the fourth quarter, Sandy Spring Bancorp reported Thursday.

The parent of Olney-based Sandy Spring Bank said its per share loss was 27 cents, compared to a net loss of $3.8 million, or 23 cents a share, in the fourth quarter of 2008.

The bank put aside $21.1 million to cover losses from loans and leases, a decrease from the third quarter’s $34.5 million provision. Performance in the fourth quarter was better than the third quarter overall mostly because of a decrease in loans overdue by 90 days. The net loss was $14.8 million, or 90 cents per share, in the third quarter.

“Looking back on 2009 and forward into 2010, we feel that this company has the underlying fundamentals and strength to weather the current economic cycle that is having a profound impact on the national community banking industry and especially the competitive landscape here in the Washington-Baltimore corridor,” said Daniel J. Schrider, president and chief executive officer, in the earnings release.

For the year, Sandy Spring had net losses of $19.7 million, compared to profits of $15.4 million in 2008. The bank’s provisions for loan and lease losses in 2009 was $76.8 million, while set asides for losses in 2008 were $33.2 million.

“Resolution of problem assets requires expertise and patience, perhaps more than the market recognizes,” Schrider said. “However, we have both expertise and patience, and we expect results over the forthcoming quarters will demonstrate our confidence and cautious optimism.”

The bank has experienced growth in residential mortgage loans, which increased to $390 million from $257 million in 2008. The mergers of local financial institutions with larger national banks like Provident Bank and Chevy Chase Bank, has opened up opportunities for Sandy Spring to grow its deposits, the bank said.