Sandy Spring Bancorp, the parent company of Sandy Spring Bank, reported record net income of $56.7 million ($1.19 per diluted common share) for the fourth quarter of 2020. The current quarter’s result compares to net income of $28.5 million for the fourth quarter of 2019 and net income of $44.6 million for the third quarter of 2020.
Operating earnings for the current quarter, which exclude the impact of the provision for credit losses, the effects from the Paycheck Protection Program and merger and acquisition expense, each on an after-tax basis, were $48.2 million ($1.02 per diluted common share), compared to $30.4 million ($0.85 per diluted common share) for the quarter ended Dec. 31, 2019 and $45.8 million ($0.97 per diluted common share) for the quarter ended Sept. 30, 2020.
The provision for credit losses for the current quarter was a credit of $4.5 million as compared to a charge of $7 million for the third quarter of 2020. The decrease in the provision for credit losses compared to the prior quarter is mainly the result of changes in macroeconomic factors, primarily the reduction in projected near term business bankruptcies as indicated in the most recent economic forecast.
“In 2020 we completed a significant integration of Revere Bank, while navigating a global pandemic and helping our clients through unprecedented challenges. This was a massive undertaking, especially in a remote work environment, but our newly combined institutions were unified in our efforts to serve our clients and to keep people safe,” said Daniel Schrider, president and CEO. “Given our strong operating results and the resilience we demonstrated throughout the year, we remain very optimistic about our future.”