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Ronald E. KuykendallThank you Dan, good afternoon ladies and gentlemen. Sandy Spring Bancorp will make forward-looking statements in this webcast that are subject to risks and uncertainties. These forward-looking statements include statements of goals, intentions, earnings and other expectations, estimates of risk and future cost and benefits, assessments of probable loan and lease losses, assessments on market risk and statements of the ability to achieve financial and other goals. These forward-looking statements are subject to significant uncertainties because they are based upon, or affected by management, estimates and projections of future interest rates, market behavior or other economic conditions, future laws and regulations and a variety of other matters which by their varied nature are subject to significant uncertainties. Because of these uncertainties, Sandy Spring Bancorp’s actual future results may differ materially from those indicated. In addition, the company’s past results of operations do not necessarily indicate its future results. Daniel J. Schrider Thanks Ron. During our conference call at the end of the first quarter, we noted that one of the main highlights was a very successful common stock offering of 7.5 million shares which resulted in net proceeds of $95.6 million. Based on the approval from the US Treasury, we’re thrilled to announce that yesterday we repaid half of the top proceeds worth $41.5 million. And it continues to be a high priority to repay remaining top funds and we do anticipate doing so sooner rather than later. As noted in our press release from earlier today, we are also very pleased to have reported a profit for the second quarter of $5.1 million or $0.21 per diluted share compared to a net loss of $1.5 million or $0.09 per diluted share for the second quarter of last year and a net loss of $700,000 or $0.04 per diluted share for the linked first quarter of 2010.
Obviously, the main driver of the quarter’s results is continued improvement in our asset quality metrics as non-performing assets declined for the third quarter in a row to $118 million compared to $146.3 million at June 30, 2009 and $143.3 million in March 31 st of this year.Our lending and credit teams; they’ve done a great job in effectively managing down our problem assets. This decrease also resulted in a coverage ratio of the allowance for loan and lease losses compared to non-performing loans which includes restructured loans and ninety-days past due of 65% compared to a ratio of 42% at June 30, 2009 and 51% at March 31 st 2010. A quarter in our allowance for loan and lease losses stood at 3.22% of outstanding loans compared to 2.44 at June 30, 2009 and 3.08% at March 31 st of 2010. Loan charge loss netted recoveries decreased to 4.3 million for the quarter compared to 12.1 million for the second quarter of ’09 and 10 million for the first quarter of 2010. As a result of these improvements, we are encouraged with the second quarter provision which was lower and amounted to only 6.1 million compared to 10.6 million for the second quarter of 2009 and about 15 million for the linked first quarter this year. We really like the way the provision and other credit metrics are trending at this time. Shifting to a year to day view for the first six months of 2010, we earned 4.4 million compared to a net loss of $465,000 for the first half of last year. Of course our 2010 year to date results included a very sizable provision totaling 21.1 million while the results for the first six months of 2009 included both the provision for loan and lease losses of 21.2 million and an industry-wide FDIC special assessment charge of 1.7 million.
As we’ve now posted three linked quarters where the provision expenses declined, our level of net charge loss and non-performing loans are also trending down. We feel confident that we’ve turned the corner. We are also seeing a meaningful decrease and new problem credits as we move through the cycle.Read the rest of this transcript for free on seekingalpha.com