Sandy Spring 2Q Earnings to Be Reduced After Jury Verdict

M&A

Sandy Spring in Md. to Buy CommerceFirst for $25 Million

In what would be its first acquisition since 2007, Sandy Spring Bancorp Inc. in Olney, Md., announced late Tuesday that it is buying CommerceFirst Bancorp Inc. for $25.4 million in cash and stock.

By Alan Kline

December 20

Sandy Spring Bancorp (SASR) in Olney, Md., said its second-quarter earnings will be reduced after a Maryland jury awarded a $6.05 million verdict in a case involving a former employee.

The $4.2 billion-asset Sandy Spring said it will reserve an undisclosed amount of funds in the second quarter because of the verdict. Sandy Spring did not specify the size of the potential impact on its earnings.

The verdict included $5 million in punitive damages and $1.05 in compensatory damages. Sandy Spring said it expects the compensatory damages will be covered by insurance.

A jury in Anne Arundel County (Md.) Circuit Court awarded the verdict in a civil case involving a former employee of CommerceFirst Bank. Sandy Spring acquired the Annapolis, Md.-based CommerceFirst in 2012. Little detail was given about the nature of the claim.

We do not believe that Sandy Spring Bank should be held liable for the actions of a former CommerceFirst Bank employee who acted outside the scope of his employment, Daniel Schrider, Sandy Spring's president and chief executive, said in a press release.

Sandy Spring will continue to fight [the outcome of the case] through the appropriate legal channels, Schrider said.

Andy Peters

twitter

MORE FROM AMERICAN BANKER

Credit unions

Mountain America exiting New Mexico with branch deal

The Sandy, Utah-based credit union said it opted to part with its two New Mexico branches to focus on other geographies. At least one expert expects an uptick in branch sales as more credit unions seek to "right-size" their networks.

By John Reosti

1h ago
Payments

It's a small world: Why payment companies are targeting SMBs

Micro-, small- and medium-sized businesses have traditionally been a tough nut to crack when it comes to serving up actionable insights. Payment data is helping to change that.

By Joey Pizzolato

4h ago
Community banking

Why community banks are struggling to expand loan portfolios

Median growth among small U.S. lenders was 1.2% for the third quarter. Bankers are hoping lower interest rates will boost demand, but borrowers aren't jumping.

By Jim Dobbs

4h ago
Fraud detection

'Human crimes is a blind spot': How banks can nab felons

The Knoble, a nonprofit that brings banks, credit unions, payment networks and law enforcement together to detect elder and child exploitation and human trafficking, has worked with more than 600 banks.

By Penny Crosman

5h ago
Branch banking

US bank robberies at new low

Banks like Fifth Third have increased security measures at their branches, while some potential robbers are turning to cybercrime.

By Catherine Leffert

8h ago
Housing

Trump's immigration plan likely to impact housing

The president-elect had billed his hardline stance on the border and promised deportations as a solution to tight housing markets. Experts say those policies, at least in terms of housing, could do more harm than good.

By Kyle Campbell

November 26