Sandy Spring Bancorp, Inc. has reported a net loss of $39.5 million for the quarter ended December 31, 2024, compared to a net income of $16.2 million for the third quarter of 2024 and $26.1 million for the fourth quarter of 2023. The net loss is attributed to a $54.4 million goodwill impairment charge resulting from the terms of the merger agreement with Atlantic Union Bankshares Corporation.
The core earnings for the current quarter were $21.0 million, compared to $17.9 million for the previous quarter and $27.1 million for the same quarter in 2023. This increase in core earnings was primarily driven by higher net interest income and non-interest income, and lower provision for credit losses, partially offset by higher adjusted non-interest expense.
Total assets at December 31, 2024, decreased by 2% to $14.1 billion compared to $14.4 billion at September 30, 2024. Total loans remained level at $11.5 billion during the same period. Total deposits stayed relatively unchanged at $11.7 billion at December 31, 2024, compared to September 30, 2024. The ratio of non-performing loans to total loans was 1.03% at December 31, 2024, compared to 1.09% at September 30, 2024, and 0.81% at December 31, 2023.
Net interest income for the fourth quarter of 2024 grew by $4.7 million or 6% compared to the previous quarter and $4.4 million or 5% compared to the fourth quarter of 2023. The net interest margin was 2.53% for the fourth quarter of 2024, compared to 2.44% for the third quarter of 2024 and 2.45% for the fourth quarter of 2023.
The total provision for credit losses was $4.5 million for the fourth quarter of 2024, compared to $6.3 million for the previous quarter and a credit of $3.4 million for the fourth quarter of 2023. Non-interest income for the fourth quarter of 2024 increased by 10% or $1.9 million compared to the linked quarter and grew by 31% or $5.1 million compared to the prior year quarter.
The tangible common equity to tangible assets ratio was 8.84% at December 31, 2024, compared to 8.83% at September 30, 2024. At December 31, 2024, the company had a total risk-based capital ratio of 15.38%, a common equity tier 1 risk-based capital ratio of 11.36%, a tier 1 risk-based capital ratio of 11.36%, and a tier 1 leverage ratio of 9.39%.
Given the decrease in net income and the specific changes in various financial metrics, Sandy Spring Bancorp, Inc. will need to carefully navigate the impact of the goodwill impairment charge and focus on strategies to improve core earnings and asset quality in the upcoming periods. Today the company's shares have moved -0.4% to a price of $33.59. If you want to know more, read the company's complete 8-K report here.
