Sandy Spring Bancorp Reports Second Quarter Earnings of $22.8 Million

OLNEY, Md., July 23, 2024 (GLOBE NEWSWIRE) -- Sandy Spring Bancorp, Inc. (Nasdaq-SASR), the parent company of Sandy Spring Bank, reported net income of $22.8 million ($0.51 per diluted common share) for the quarter ended June 30, 2024, compared to net income of $20.4 million ($0.45 per diluted common share) for the first quarter of 2024 and $24.7 million ($0.55 per diluted common share) for the second quarter of 2023.

Current quarter's core earnings were $24.4 million ($0.54 per diluted common share), compared to $21.9 million ($0.49 per diluted common share) for the quarter ended March 31, 2024 and $27.1 million ($0.60 per diluted common share) for the quarter ended June 30, 2023. Core earnings exclude the after-tax impact of amortization of intangibles, investment securities gains or losses and other non-recurring or extraordinary items. The current quarter's increase in net income and core earnings as compared to the linked quarter was driven by an increase in non-interest income and net interest income coupled with lower provision for credit losses. The total provision for credit losses was $1.0 million for the second quarter of 2024 compared to $2.4 million for the previous quarter and $5.1 million for the second quarter of 2023.

“We delivered strong results in several key categories – growing core deposits, building our commercial loan portfolio and expanding the margin,” said Daniel J. Schrider, Chair, President & CEO of Sandy Spring Bank. “We have steadily improved our profitability and fully intend to maintain this trajectory throughout the balance of the year.”

Second Quarter Highlights

• Total assets at June 30, 2024 increased by 1% to $14.0 billion compared to $13.9 billion at March 31, 2024.
  
• Total loans increased by $119.6 million or 1% to $11.5 billion as of June 30, 2024 compared to $11.4 billion at March 31, 2024. During the current quarter, AD&C and commercial business loans and lines increased by $94.0 million and $91.9 million, respectively, while the commercial investor real estate segment declined by $64.5 million. Total residential mortgage and consumer loan portfolios remained relatively unchanged during this period.
  
• Deposits increased by $113.0 million or 1% to $11.3 billion at June 30, 2024 compared to $11.2 billion at March 31, 2024. This increase was entirely driven by noninterest-bearing deposits, which increased by $113.5 million during the current quarter due to higher balances in commercial and small business checking accounts. Interest-bearing deposits were relatively unchanged as $167.6 million and $99.0 million increases in money market and savings accounts, respectively, were fully offset by the $172.5 million reduction in time deposits, of which $154.7 million was related to a reduction in brokered time deposits, and the $94.6 million decline in interest checking accounts. Total deposits, excluding brokered deposits, increased by $271.2 million or 3% quarter-over-quarter and represented 94% of the total deposits as of June 30, 2024.
  
• The ratio of non-performing loans to total loans was 0.81% at June 30, 2024 compared to 0.74% at March 31, 2024 and 0.44% at June 30, 2023. Net charge-offs for the current quarter totaled $0.2 million.
  
• Net interest income for the second quarter of 2024 grew $0.9 million or 1% compared to the previous quarter and decreased by $10.2 million or 11% compared to the second quarter of 2023. Compared to the previous quarter, interest income declined by $0.9 million, while interest expense decreased by $1.8 million.
  
• The net interest margin was 2.46% for the second quarter of 2024 compared to 2.41% for the first quarter of 2024 and 2.73% for the second quarter of 2023. Compared to the linked quarter, the rate paid on interest-bearing liabilities decreased three basis points, while the yield on interest-earning assets rose two basis points.
  
• Provision for credit losses directly attributable to the funded loan portfolio was $3.0 million for the current quarter compared to $3.3 million in the previous quarter and $4.5 million in the prior year quarter. The current quarter's provision expense is a product of higher individual reserves on collateral-dependent loans along with overall growth of the loan portfolio, partially offset by lower qualitative adjustments due to the reduction in commercial investor real estate loans. In addition, during the current quarter, the reserve for unfunded commitments decreased by $1.9 million as a result of higher utilization rates on lines of credit.
  
• Non-interest income for the second quarter of 2024 increased by 7% or $1.2 million compared to the linked quarter and grew by 14% or $2.4 million compared to the prior year quarter. The quarter-over-quarter increase was mainly driven by higher BOLI mortality-related income, higher wealth management income, and higher income from mortgage banking activities.
  
• Non-interest expense for the second quarter of 2024 increased by $0.1 million compared to the first quarter of 2024 and declined by $1.0 million or 1% compared to the prior year quarter. The slight increase in non-interest expense quarter-over-quarter was primarily due to higher salaries and benefits and an increase in marketing expenses, which were offset by lower general operating expenses.
  
• Return on average assets (“ROA”) for the quarter ended June 30, 2024 was 0.66% and return on average tangible common equity (“ROTCE”) was 8.27% compared to 0.58% and 7.39%, respectively, for the first quarter of 2024 and 0.70% and 8.93%, respectively, for the second quarter of 2023. On a non-GAAP basis, the current quarter's core ROA was 0.70% and core ROTCE was 8.27% compared to 0.63% and 7.39%, respectively, for the previous quarter and 0.77% and 9.43%, respectively, for the second quarter of 2023.
  
• The GAAP efficiency ratio was 68.19% for the second quarter of 2024, compared to 69.60% for the first quarter of 2024 and 64.22% for the second quarter of 2023. The non-GAAP efficiency ratio was 65.31% for the second quarter of 2024 compared to 66.73% for the first quarter of 2024 and 60.68% for the prior year quarter. The decrease in non-GAAP efficiency ratio (reflecting an increase in efficiency) in the current quarter compared to the previous quarter was the result of higher net revenue in the current quarter coupled with relatively stable non-interest expense.
  

Balance Sheet and Credit Quality

Total assets were $14.0 billion at June 30, 2024, as compared to $13.9 billion at March 31, 2024. At June 30, 2024, total loans increased by $119.6 million or 1% to $11.5 billion compared to the previous quarter. Commercial investor real estate loans decreased $64.5 million or 1% quarter-over-quarter, while the AD&C and commercial business loans and lines portfolios grew $94.0 million or 9% and $91.9 million or 6%, respectively, during this period. Total residential mortgage and consumer loan portfolios remained relatively unchanged.

Deposits increased $113.0 million or 1% to $11.3 billion at June 30, 2024 compared to $11.2 billion at March 31, 2024. During this period, noninterest-bearing deposits increased $113.5 million or 4%, while interest-bearing deposits were relatively unchanged. Growth within noninterest-bearing deposit categories was driven by commercial and small business checking accounts. Within interest-bearing deposits, money market and savings accounts grew $167.6 million or 6% and $99.0 million or 6% during the current quarter, respectively. These increases were offset by the $172.5 million or 7% reduction in time deposits, of which $154.7 million was related to a reduction in brokered time deposits, and the $94.6 million or 6% decrease in interest checking accounts. Total deposits, excluding brokered deposits, increased by $271.2 million or 3% quarter-over-quarter and represented 94% of the total deposits as of June 30, 2024 compared to 93% at March 31, 2024, reflecting continued strength and stability of the core deposit base. Total uninsured deposits at June 30, 2024 were approximately 36% of total deposits.

Total borrowings were relatively unchanged at June 30, 2024 as compared to the previous quarter. At June 30, 2024, available unused sources of liquidity, which consist of available FHLB borrowings, fed funds, funds through the Federal Reserve Bank's discount window, as well as excess cash and unpledged investment securities, totaled $6.3 billion or 154% of uninsured deposits.

The tangible common equity to tangible assets ratio declined slightly to 8.85% at June 30, 2024, compared to 8.86% at March 31, 2024.

At June 30, 2024, the Company had a total risk-based capital ratio of 15.49%, a common equity tier 1 risk-based capital ratio of 11.28%, a tier 1 risk-based capital ratio of 11.28%, and a tier 1 leverage ratio of 9.70%. These risk-based capital ratios compare to a total risk-based capital ratio of 15.05%, a common equity tier 1 risk-based capital ratio of 10.96%, a tier 1 risk-based capital ratio of 10.96%, and a tier 1 leverage ratio of 9.56% at March 31, 2024. The increase across all risk-based capital ratios during the current quarter was driven by reduced risk weightings applied on certain consumer unfunded commitment categories that met the regulatory capital requirements. All of these ratios remain well in excess of the mandated minimum regulatory requirements.

Non-performing loans include non-accrual loans and accruing loans 90 days or more past due. At June 30, 2024, non-performing loans totaled $93.0 million, compared to $84.4 million at March 31, 2024 and $49.5 million at June 30, 2023. The non-performing loans to total loans ratio was 0.81% compared to 0.74% on a linked quarter basis. These levels of non-performing loans compare to 0.44% at June 30, 2023. The current quarter's increase in non-performing loans was mainly related to several loans within the commercial owner-occupied real estate segment, which were placed on non-accrual status during the current period. All of these loans are well secured by collateral and required no individual reserves as of June 30, 2024. Total net charge-offs for the current quarter amounted to $0.2 million compared to $1.1 million for the first quarter of 2024 and $1.8 million for the second quarter of 2023.

At June 30, 2024, the allowance for credit losses was $125.9 million or 1.10% of outstanding loans and 135% of non-performing loans, compared to $123.1 million or 1.08% of outstanding loans and 146% of non-performing loans at the end of the previous quarter and $120.3 million or 1.06% of outstanding loans and 243% of non-performing loans at the end of the second quarter of 2023. The increase in the allowance for the current quarter compared to the previous quarter mainly reflects higher individual reserves on collateral-dependent non-accrual loans coupled with an overall growth of the loan portfolio experienced during the current quarter, partially offset by lower qualitative adjustments as a result of declines in investor commercial real estate loans.

Income Statement Review

Quarterly Results

Net income was $22.8 million ($0.51 per diluted common share) for the three months ended June 30, 2024 compared to $20.4 million ($0.45 per diluted common share) for the three months ended March 31, 2024 and $24.7 million ($0.55 per diluted common share) for the prior year quarter. The current quarter's core earnings were $24.4 million ($0.54 per diluted common share), compared to $21.9 million ($0.49 per diluted common share) for the previous quarter and $27.1 million ($0.60 per diluted common share) for the quarter ended June 30, 2023. The increases in the current quarter's net income and core earnings compared to the previous quarter were driven primarily by higher net interest income and non-interest income in combination with lower provision for credit losses.

Net interest income for the second quarter of 2024 increased $0.9 million or 1% compared to the previous quarter and declined $10.2 million or 11% compared to the second quarter of 2023. During the current quarter, interest income declined $0.9 million, while interest expense decreased $1.8 million, mainly driven by the $2.9 million decrease in interest expense on borrowings, as we fully paid off the Federal Reserve Bank's Bank Term Funding Program facility during the previous quarter. The rising interest rate environment was primarily responsible for a $7.0 million year-over-year increase in interest income. This growth in interest income was more than offset by the $17.1 million year-over-year growth in interest expense as funding costs have also risen in response to the rising rate environment and significant competition for deposits.

The net interest margin was 2.46% for the second quarter of 2024 compared to 2.41% for the first quarter of 2024 and 2.73% for the second quarter of 2023. The increase in the net interest margin during the current quarter was a result of a two basis point increase in the yield earned on interest-earning assets coupled with a three basis points decrease in the rate paid on interest-bearing liabilities. As compared to the prior year quarter, the yield on interest-earning assets increased 28 basis points while the rate paid on interest-bearing liabilities rose 68 basis points, resulting in net interest margin compression of 27 basis points. The rate and yield increases year-over-year were driven by the higher interest rate environment, competition for deposits in the market, and customer movement of excess funds out of noninterest-bearing accounts into higher yielding products.

The total provision for credit losses was $1.0 million for the second quarter of 2024 compared to $2.4 million for the previous quarter and $5.1 million for the second quarter of 2023. The provision for credit losses directly attributable to the funded loan portfolio was $3.0 million for the current quarter compared to $3.3 million for the first quarter of 2024 and $4.5 million for the second quarter of 2023. The current quarter's provision is mainly a reflection of higher individual reserves on collateral-dependent non-accrual loans, based on updated valuations of collateral, in combination with the quarterly loan growth, partially offset by lower qualitative adjustments due to a reduction in commercial investor real estate loans. In addition, during the current quarter, the reserve for unfunded commitments decreased by $1.9 million as a result of higher utilization rates on lines of credit.

Non-interest income for the second quarter of 2024 increased by 7% or $1.2 million compared to the linked quarter and grew by 14% or $2.4 million compared to the prior year quarter. The current quarter's increase in non-interest income as compared to the previous quarter was mainly driven by the $0.7 million increase in BOLI income, due to the receipt of death proceeds, and the $0.5 million increase in wealth management income, due to the $50.2 million or 1% growth in assets under management quarter-over-quarter and the overall favorable market performance. In addition, income from mortgage banking activities increased by $0.2 million during the current quarter compared to the previous quarter reflecting increased gains realized on greater sales volumes during the current period.

Non-interest expense for the second quarter of 2024 increased $0.1 million compared to the first quarter of 2024 and declined $1.0 million or 1% compared to the second quarter of 2023. The quarter-over-quarter increase is predominantly attributable to the $1.1 million increase in salaries and benefits coupled with the $0.5 million increase in marketing expense. These increases were fully offset by lower general operating expenses, which declined by $1.8 million.

For the second quarter of 2024, the GAAP efficiency ratio was 68.19% compared to 69.60% for the first quarter of 2024 and 64.22% for the second quarter of 2023. The GAAP efficiency ratio rose from the prior year quarter primarily as a result of the 7% decrease in GAAP revenue, while GAAP non-interest expense stayed relatively unchanged. The non-GAAP efficiency ratio was 65.31% for the current quarter as compared to 66.73% for the first quarter of 2024 and 60.68% for the second quarter of 2023. The increase in the non-GAAP efficiency ratio (reflecting a decrease in efficiency) from the second quarter of the prior year to the current year quarter was primarily the result of the 7% decline in non-GAAP revenue.

ROA for the quarter ended June 30, 2024 was 0.66% and ROTCE was 8.27% compared to 0.58% and 7.39%, respectively, for the first quarter of 2024 and 0.70% and 8.93%, respectively, for the second quarter of 2023. On a non-GAAP basis, the current quarter's core ROA was 0.70% and core ROTCE was 8.27% compared to 0.63% and 7.39% for the first quarter of 2024 and 0.77% and 9.43%, respectively, for the second quarter of 2023.

Year-to-Date Results

The Company recorded net income of $43.2 million for the six months ended June 30, 2024 compared to net income of $76.0 million for the same period in the prior year. Core earnings were $46.3 million for the six months ended June 30, 2024 compared to $79.4 million for the same period in the prior year. Year-to-date net income and core earnings declined as a result of lower net interest income in combination with higher provision for credit losses.

For the six months ended June 30, 2024, net interest income decreased $28.1 million compared to the prior year as a result of the $49.8 million increase in interest expense, partially offset by the $21.6 million increase in interest income. The increase in interest expense was driven by the interest expense on deposits, primarily associated with savings and time deposit accounts. The net interest margin declined to 2.44% for the six months ended June 30, 2024, compared to 2.86% for the prior year, primarily as a result of higher funding costs due to the rising interest rate environment and market competition for deposits during the period.

The provision for credit losses for the six months ended June 30, 2024 amounted to $3.4 million as compared to a credit of $16.5 million for 2023. The provision for the six months ended June 30, 2024 was primarily due to adjustments applied to specific industries within the commercial real estate segment during the first quarter of 2024. The prior year's credit to provision was mainly attributable to the improving regional forecasted unemployment rate observed during the first half of 2023, and the declining probability of economic recession.

For the six months ended June 30, 2024, non-interest income increased 15% to $38.0 million compared to $33.1 million for 2023. During the current year, wealth management income increased $2.4 million or 13%, as assets under management increased $472.8 million or 8% year-over-year. In addition, BOLI mortality-related income and service charges on deposit accounts both increased $0.8 million.

Non-interest expense increased to $136.1 million for the six months ended June 30, 2024, compared to $135.4 million for 2023. The drivers of the increase in non-interest expense were the $2.0 million increase in professional fees, the $1.6 million increase in amortization of intangible assets, the $1.3 million increase in FDIC expense, and the $1.2 million increase in general operating expenses. These year-over-year increases were offset by the $5.4 million decrease in compensation and benefits, as the prior year period included severance related expenses associated with staffing adjustments, and the $1.1 million decrease in marketing expense.

For the six months ended June 30, 2024, the GAAP efficiency ratio was 68.89% compared to 61.31% for the same period in 2023. The non-GAAP efficiency ratio for the current year was 66.01% compared to 58.73% for the prior year. The growth in the current year’s GAAP and non-GAAP efficiency ratios compared to the prior year, indicating a decline in efficiency, was the result of the declines in GAAP and non-GAAP revenues combined with the growth in GAAP and non-GAAP non-interest expenses.

Explanation of Non-GAAP Financial Measures

This news release contains financial information and performance measures determined by methods other than in accordance with generally accepted accounting principles in the United States (“GAAP”). The Company’s management believes that the supplemental non-GAAP information provides a better comparison of period-to-period operating performance. Additionally, the Company believes this information is utilized by regulators and market analysts to evaluate a company’s financial condition and, therefore, such information is useful to investors. Non-GAAP measures used in this release consist of the following:

• Tangible common equity and related measures are non-GAAP measures that exclude the impact of goodwill and other intangible assets.
• The non-GAAP efficiency ratio excludes amortization of intangible assets, investment securities gains/(losses), severance expense, contingent payment expense, and includes tax-equivalent income.
• Core earnings and the related measures of core earnings per diluted common share, core return on average assets and core return on average tangible common equity reflect net income exclusive of amortization of intangible assets, investment securities gains/(losses) and other non-recurring or extraordinary items, on a net of tax basis.
• Pre-tax pre-provision net income excludes income tax expense and the provision (credit) for credit losses.

These disclosures should not be viewed as a substitute for financial results in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Please refer to the non-GAAP Reconciliation tables included with this release for a reconciliation of these non-GAAP measures to the most directly comparable GAAP measure.

Conference Call

The Company’s management will host a conference call to discuss its second quarter results today at 2:00 p.m. (ET). A live Webcast of the conference call is available through the Investor Relations section of the Sandy Spring Website at www.sandyspringbank.com. Participants may call 1-833-470-1428. Please use the following access code: 340278. Visitors to the Website are advised to log on 10 minutes ahead of the scheduled start of the call. An internet-based replay will be available on the website until August 6, 2024. A replay of the teleconference will be available through the same time period by calling 1-866-813-9403 under conference call number 846010.

About Sandy Spring Bancorp, Inc.

Sandy Spring Bancorp, Inc., headquartered in Olney, Maryland, is the holding company for Sandy Spring Bank, a premier community bank in the Greater Washington, D.C. region. With over 50 locations, the bank offers a broad range of commercial and retail banking, mortgage, private banking, and trust services throughout Maryland, Virginia, and Washington, D.C. Through its subsidiaries, Rembert Pendleton Jackson and West Financial Services, Inc., Sandy Spring Bank also offers a comprehensive menu of wealth management services.

Category: Webcast
Source: Sandy Spring Bancorp, Inc.
Code: SASR-E

For additional information or questions, please contact:
Daniel J. Schrider, Chair, President & Chief Executive Officer, or
Charles S. Cullum, E.V.P. & Chief Financial Officer
Sandy Spring Bancorp
17801 Georgia Avenue
Olney, Maryland 20832
1-800-399-5919
Email: DSchrider@sandyspringbank.com
CCullum@sandyspringbank.com

Website: www.sandyspringbank.com
Media Contact:
Samantha Price, Vice President
301-260-3614
sprice@sandyspringbank.com

Forward-Looking Statements

Sandy Spring Bancorp’s forward-looking statements are subject to significant risks and uncertainties that may cause actual results to differ materially from those in such statements. These risks and uncertainties include, but are not limited to, the risks identified in our quarterly and annual reports and the following: changes in general business and economic conditions nationally or in the markets that we serve; changes in consumer and business confidence, investor sentiment, or consumer spending or savings behavior; changes in the level of inflation; changes in the demand for loans, deposits and other financial services that we provide; the possibility that future credit losses may be higher than currently expected; the impact of the interest rate environment on our business, financial condition and results of operations; the impact of compliance with changes in laws, regulations and regulatory interpretations, including changes in income taxes; changes in credit ratings assigned to us or our subsidiaries; the ability to realize benefits and cost savings from, and limit any unexpected liabilities associated with, any business combinations; competitive pressures among financial services companies; the ability to attract, develop and retain qualified employees; our ability to maintain the security of our data processing and information technology systems; the impact of changes in accounting policies, including the introduction of new accounting standards; the impact of judicial or regulatory proceedings; the impact of fiscal and governmental policies of the United States federal government; the impact of health emergencies, epidemics or pandemics; the effects of climate change; and the impact of natural disasters, extreme weather events, military conflict, terrorism or other geopolitical events. Sandy Spring Bancorp provides greater detail regarding some of these factors in its Form 10-K for the year ended December 31, 2023, including in the Risk Factors section of that report, and in its other SEC reports. Sandy Spring Bancorp’s forward-looking statements may also be subject to other risks and uncertainties, including those that it may discuss elsewhere in this news release or in its filings with the SEC, accessible on the SEC’s Web site at www.sec.gov.

Sandy Spring Bancorp, Inc. and Subsidiaries
FINANCIAL HIGHLIGHTS - UNAUDITED

		Three Months Ended June 30,								% Change			Six Months Ended June 30,								% Change
(Dollars in thousands, except per share data)		2024				2023							2024				2023
Results of operations:
Net interest income		$	80,285			$	90,471			(11	)%		$	159,628			$	187,773			(15	)%
Provision/ (credit) for credit losses			1,020				5,055			(80	)%			3,408				(16,481	)		N/M
Non-interest income			19,587				17,176			14				37,954				33,127			15
Non-interest expense			68,104				69,136			(1	)			136,110				135,441			—
Income before income tax expense			30,748				33,456			(8	)			58,064				101,940			(43	)
Net income			22,807				24,745			(8	)			43,179				75,998			(43	)
Net income attributable to common shareholders		$	22,800			$	24,712			(8	)		$	43,145			$	75,821			(43	)
Pre-tax pre-provision net income(1)		$	31,768			$	38,511			(18	)		$	61,472			$	85,459			(28	)
Return on average assets			0.66	%			0.70	%						0.62	%			1.09	%
Return on average common equity			5.81	%			6.46	%						5.49	%			10.12	%
Return on average tangible common equity(1)			8.27	%			8.93	%						7.83	%			13.88	%
Net interest margin			2.46	%			2.73	%						2.44	%			2.86	%
Efficiency ratio - GAAP basis(2)			68.19	%			64.22	%						68.89	%			61.31	%
Efficiency ratio - Non-GAAP basis(2)			65.31	%			60.68	%						66.01	%			58.73	%
Per share data:
Basic net income per common share		$	0.51			$	0.55			(7	)%		$	0.96			$	1.69			(43	)%
Diluted net income per common share		$	0.51			$	0.55			(8	)		$	0.96			$	1.69			(43	)
Weighted average diluted common shares			45,145,214				44,888,759			1				45,113,019				44,876,873			1
Dividends declared per share		$	0.34			$	0.34			—			$	0.68			$	0.68			—
Book value per common share		$	35.45			$	34.31			3			$	35.45			$	34.31			3
Tangible book value per common share(1)		$	26.72			$	25.82			4			$	26.72			$	25.82			4
Outstanding common shares			45,109,671				44,862,369			1				45,109,671				44,862,369			1
Financial condition at period-end:
Investment securities		$	1,401,511			$	1,463,554			(4	)%		$	1,401,511			$	1,463,554			(4	)%
Loans			11,483,921				11,369,639			1				11,483,921				11,369,639			1
Assets			14,008,343				13,994,545			—				14,008,343				13,994,545			—
Deposits			11,340,228				10,958,922			3				11,340,228				10,958,922			3
Stockholders' equity			1,599,004				1,539,032			4				1,599,004				1,539,032			4
Capital ratios:
Tier 1 leverage(3)			9.70	%			9.42	%						9.70	%			9.42	%
Common equity tier 1 capital to risk-weighted assets(3)			11.28	%			10.65	%						11.28	%			10.65	%
Tier 1 capital to risk-weighted assets(3)			11.28	%			10.65	%						11.28	%			10.65	%
Total regulatory capital to risk-weighted assets(3)			15.49	%			14.60	%						15.49	%			14.60	%
Tangible common equity to tangible assets(4)			8.85	%			8.51	%						8.85	%			8.51	%
Average equity to average assets			11.32	%			10.89	%						11.29	%			10.80	%
Credit quality ratios:
Allowance for credit losses to loans			1.10	%			1.06	%						1.10	%			1.06	%
Non-performing loans to total loans			0.81	%			0.44	%						0.81	%			0.44	%
Non-performing assets to total assets			0.68	%			0.36	%						0.68	%			0.36	%
Allowance for credit losses to non-performing loans			135.35	%			243.21	%						135.35	%			243.21	%
Annualized net charge-offs/ (recoveries) to average loans(5)			0.01	%			0.06	%						0.02	%			0.03	%

N/M - not meaningful
(1)		Represents a non-GAAP measure.
(2)		The efficiency ratio - GAAP basis is non-interest expense divided by net interest income plus non-interest income from the Condensed Consolidated Statements of Income. The traditional efficiency ratio - Non-GAAP basis excludes intangible asset amortization, and contingent payment expense from non-interest expense; and investment securities gains/ (losses) from non-interest income; and adds the tax-equivalent adjustment to net interest income. See the Reconciliation Table included with these Financial Highlights.
(3)		Estimated ratio at June 30, 2024.
(4)		The tangible common equity to tangible assets ratio is a non-GAAP ratio that divides assets excluding goodwill and other intangible assets into stockholders' equity after deducting goodwill and other intangible assets. See the Reconciliation Table included with these Financial Highlights.
(5)		Calculation utilizes average loans, excluding residential mortgage loans held-for-sale.

Sandy Spring Bancorp, Inc. and Subsidiaries
RECONCILIATION TABLE - UNAUDITED (CONTINUED)
OPERATING EARNINGS - METRICS

		Three Months Ended June 30,								Six Months Ended June 30,
(Dollars in thousands)		2024				2023				2024				2023
Core earnings (non-GAAP):
Net income (GAAP)		$	22,807			$	24,745			$	43,179			$	75,998
Plus/ (less) non-GAAP adjustments (net of tax)(1):
Amortization of intangible assets			1,593				946				3,137				1,919
Severance expense			—				1,445				—				1,445
Contingent payment expense			—				—				—				27
Core earnings (Non-GAAP)		$	24,400			$	27,136			$	46,316			$	79,389
Core earnings per diluted common share (non-GAAP):
Weighted average common shares outstanding - diluted (GAAP)			45,145,214				44,888,759				45,113,019				44,876,873
Earnings per diluted common share (GAAP)		$	0.51			$	0.55			$	0.96			$	1.69
Core earnings per diluted common share (non-GAAP)		$	0.54			$	0.60			$	1.03			$	1.77
Core return on average assets (non-GAAP):
Average assets (GAAP)		$	13,956,261			$	14,094,653			$	14,009,099			$	14,022,364
Return on average assets (GAAP)			0.66	%			0.70	%			0.62	%			1.09	%
Core return on average assets (non-GAAP)			0.70	%			0.77	%			0.66	%			1.14	%
Return/ Core return on average tangible common equity (non-GAAP):
Net Income (GAAP)		$	22,807			$	24,745			$	43,179			$	75,998
Plus: Amortization of intangible assets (net of tax)			1,593				946				3,137				1,919
Net income before amortization of intangible assets		$	24,400			$	25,691			$	46,316			$	77,917
Average total stockholders' equity (GAAP)		$	1,579,582			$	1,535,465			$	1,582,242			$	1,513,817
Average goodwill			(363,436	)			(363,436	)			(363,436	)			(363,436	)
Average other intangible assets, net			(29,874	)			(18,074	)			(29,567	)			(18,724	)
Average tangible common equity (non-GAAP)		$	1,186,272			$	1,153,955			$	1,189,239			$	1,131,657
Return on average tangible common equity (non-GAAP)			8.27	%			8.93	%			7.83	%			13.88	%
Core return on average tangible common equity (non-GAAP)			8.27	%			9.43	%			7.83	%			14.15	%

(1)		Tax adjustments have been determined using the combined marginal federal and state rate of 25.37% and 25.47% for 2024 and 2023, respectively.

Sandy Spring Bancorp, Inc. and Subsidiaries
RECONCILIATION TABLE - UNAUDITED

		Three Months Ended June 30,								Six Months Ended June 30,
(Dollars in thousands)		2024				2023				2024				2023
Pre-tax pre-provision net income:
Net income (GAAP)		$	22,807			$	24,745			$	43,179			$	75,998
Plus/ (less) non-GAAP adjustments:
Income tax expense			7,941				8,711				14,885				25,942
Provision/ (credit) for credit losses			1,020				5,055				3,408				(16,481	)
Pre-tax pre-provision net income (non-GAAP)		$	31,768			$	38,511			$	61,472			$	85,459
Efficiency ratio (GAAP):
Non-interest expense		$	68,104			$	69,136			$	136,110			$	135,441
Net interest income plus non-interest income		$	99,872			$	107,647			$	197,582			$	220,900
Efficiency ratio (GAAP)			68.19	%			64.22	%			68.89	%			61.31	%
Efficiency ratio (Non-GAAP):
Non-interest expense		$	68,104			$	69,136			$	136,110			$	135,441
Less non-GAAP adjustments:
Amortization of intangible assets			2,135				1,269				4,204				2,575
Severance expense			—				1,939				—				1,939
Contingent payment expense			—				—				—				36
Non-interest expense - as adjusted		$	65,969			$	65,928			$	131,906			$	130,891
Net interest income plus non-interest income		$	99,872			$	107,647			$	197,582			$	220,900
Plus non-GAAP adjustment:
Tax-equivalent income			1,139				1,006				2,238				1,976
Less/ (plus) non-GAAP adjustment:
Investment securities gains/ (losses)			—				—				—				—
Net interest income plus non-interest income - as adjusted		$	101,011			$	108,653			$	199,820			$	222,876
Efficiency ratio (Non-GAAP)			65.31	%			60.68	%			66.01	%			58.73	%
Tangible common equity ratio:
Total stockholders' equity		$	1,599,004			$	1,539,032			$	1,599,004			$	1,539,032
Goodwill			(363,436	)			(363,436	)			(363,436	)			(363,436	)
Other intangible assets, net			(30,087	)			(17,280	)			(30,087	)			(17,280	)
Tangible common equity		$	1,205,481			$	1,158,316			$	1,205,481			$	1,158,316
Total assets		$	14,008,343			$	13,994,545			$	14,008,343			$	13,994,545
Goodwill			(363,436	)			(363,436	)			(363,436	)			(363,436	)
Other intangible assets, net			(30,087	)			(17,280	)			(30,087	)			(17,280	)
Tangible assets		$	13,614,820			$	13,613,829			$	13,614,820			$	13,613,829
Tangible common equity ratio			8.85	%			8.51	%			8.85	%			8.51	%
Outstanding common shares			45,109,671				44,862,369				45,109,671				44,862,369
Tangible book value per common share		$	26.72			$	25.82			$	26.72			$	25.82

Sandy Spring Bancorp, Inc. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF CONDITION - UNAUDITED

(Dollars in thousands)		June 30, 2024				December 31, 2023
Assets
Cash and due from banks		$	84,464			$	82,257
Federal funds sold			—				245
Interest-bearing deposits with banks			322,246				463,396
Cash and cash equivalents			406,710				545,898
Residential mortgage loans held for sale (at fair value)			18,961				10,836
Investments held-to-maturity (fair values of $187,389 and $200,411 at June 30, 2024 and December 31, 2023, respectively)			226,233				236,165
Investments available-for-sale (at fair value)			1,101,846				1,102,681
Other investments, at cost			73,432				75,607
Total loans			11,483,921				11,366,989
Less: allowance for credit losses - loans			(125,863	)			(120,865	)
Net loans			11,358,058				11,246,124
Premises and equipment, net			58,212				59,490
Other real estate owned			2,700				—
Accrued interest receivable			46,668				46,583
Goodwill			363,436				363,436
Other intangible assets, net			30,087				28,301
Other assets			322,000				313,051
Total assets		$	14,008,343			$	14,028,172
Liabilities
Noninterest-bearing deposits		$	2,931,405			$	2,914,161
Interest-bearing deposits			8,408,823				8,082,377
Total deposits			11,340,228				10,996,538
Securities sold under retail repurchase agreements			75,038				75,032
Federal Reserve Bank borrowings			—				300,000
Advances from FHLB			500,000				550,000
Subordinated debt			371,101				370,803
Total borrowings			946,139				1,295,835
Accrued interest payable and other liabilities			122,972				147,657
Total liabilities			12,409,339				12,440,030
Stockholders' equity
Common stock -- par value $1.00; shares authorized 100,000,000; shares issued and outstanding 45,109,671 and 44,913,561 at June 30, 2024 and December 31, 2023, respectively.			45,110				44,914
Additional paid in capital			745,336				742,243
Retained earnings			910,552				898,316
Accumulated other comprehensive loss			(101,994	)			(97,331	)
Total stockholders' equity			1,599,004				1,588,142
Total liabilities and stockholders' equity		$	14,008,343			$	14,028,172

Sandy Spring Bancorp, Inc. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED

		Three Months Ended June 30,								Six Months Ended June 30,
(Dollars in thousands, except per share data)		2024				2023				2024				2023
Interest income:
Interest and fees on loans		$	151,335			$	144,274			$	301,970			$	284,001
Interest on loans held for sale			309				307				437				459
Interest on deposits with banks			4,424				4,922				11,210				7,608
Interest and dividend income on investment securities:
Taxable			7,216				6,848				13,879				13,856
Tax-advantaged			1,826				1,795				3,623				3,565
Interest on federal funds sold			3				4				8				8
Total interest income			165,113				158,150				331,127				309,497
Interest expense:
Interest on deposits			74,409				51,325				147,775				92,113
Interest on retail repurchase agreements and federal funds purchased			1,052				4,191				4,438				6,295
Interest on advances from FHLB			5,420				8,216				11,393				15,423
Interest on subordinated debt			3,947				3,947				7,893				7,893
Total interest expense			84,828				67,679				171,499				121,724
Net interest income			80,285				90,471				159,628				187,773
Provision/ (credit) for credit losses			1,020				5,055				3,408				(16,481	)
Net interest income after provision/ (credit) for credit losses			79,265				85,416				156,220				204,254
Non-interest income:
Service charges on deposit accounts			2,939				2,606				5,756				4,994
Mortgage banking activities			1,621				1,817				2,995				3,062
Wealth management income			10,455				9,031				20,413				18,023
Income from bank owned life insurance			1,816				1,251				2,976				2,158
Bank card fees			445				447				858				865
Other income			2,311				2,024				4,956				4,025
Total non-interest income			19,587				17,176				37,954				33,127
Non-interest expense:
Salaries and employee benefits			37,821				40,931				74,519				79,857
Occupancy expense of premises			4,805				4,764				9,621				9,611
Equipment expenses			3,868				3,760				7,831				7,877
Marketing			1,288				1,589				2,030				3,132
Outside data services			3,286				2,853				6,389				5,367
FDIC insurance			2,951				2,375				5,862				4,513
Amortization of intangible assets			2,135				1,269				4,204				2,575
Professional fees and services			4,946				4,161				9,826				7,845
Other expenses			7,004				7,434				15,828				14,664
Total non-interest expense			68,104				69,136				136,110				135,441
Income before income tax expense			30,748				33,456				58,064				101,940
Income tax expense			7,941				8,711				14,885				25,942
Net income		$	22,807			$	24,745			$	43,179			$	75,998
Net income per share amounts:
Basic net income per common share		$	0.51			$	0.55			$	0.96			$	1.69
Diluted net income per common share		$	0.51			$	0.55			$	0.96			$	1.69
Dividends declared per share		$	0.34			$	0.34			$	0.68			$	0.68

Sandy Spring Bancorp, Inc. and Subsidiaries
HISTORICAL TRENDS - QUARTERLY FINANCIAL DATA - UNAUDITED

		2024								2023
(Dollars in thousands, except per share data)		Q2				Q1				Q4				Q3				Q2				Q1
Profitability for the quarter:
Tax-equivalent interest income		$	166,252			$	167,113			$	166,729			$	163,479			$	159,156			$	152,317
Interest expense			84,828				86,671				83,920				77,330				67,679				54,045
Tax-equivalent net interest income			81,424				80,442				82,809				86,149				91,477				98,272
Tax-equivalent adjustment			1,139				1,099				1,113				1,068				1,006				970
Provision/ (credit) for credit losses			1,020				2,388				(3,445	)			2,365				5,055				(21,536	)
Non-interest income			19,587				18,367				16,560				17,391				17,176				15,951
Non-interest expense			68,104				68,006				67,142				72,471				69,136				66,305
Income before income tax expense			30,748				27,316				34,559				27,636				33,456				68,484
Income tax expense			7,941				6,944				8,459				6,890				8,711				17,231
Net income		$	22,807			$	20,372			$	26,100			$	20,746			$	24,745			$	51,253
GAAP financial performance:
Return on average assets			0.66	%			0.58	%			0.73	%			0.58	%			0.70	%			1.49	%
Return on average common equity			5.81	%			5.17	%			6.70	%			5.35	%			6.46	%			13.93	%
Return on average tangible common equity			8.27	%			7.39	%			9.26	%			7.42	%			8.93	%			19.10	%
Net interest margin			2.46	%			2.41	%			2.45	%			2.55	%			2.73	%			2.99	%
Efficiency ratio - GAAP basis			68.19	%			69.60	%			68.33	%			70.72	%			64.22	%			58.55	%
Non-GAAP financial performance:
Pre-tax pre-provision net income		$	31,768			$	29,704			$	31,114			$	30,001			$	38,511			$	46,948
Core after-tax earnings		$	24,400			$	21,916			$	27,147			$	27,766			$	27,136			$	52,253
Core return on average assets			0.70	%			0.63	%			0.76	%			0.78	%			0.77	%			1.52	%
Core return on average common equity			6.21	%			5.56	%			6.97	%			7.16	%			7.09	%			14.20	%
Core return on average tangible common equity			8.27	%			7.39	%			9.26	%			9.51	%			9.43	%			19.11	%
Core earnings per diluted common share		$	0.54			$	0.49			$	0.60			$	0.62			$	0.60			$	1.16
Efficiency ratio - Non-GAAP basis			65.31	%			66.73	%			66.16	%			60.91	%			60.68	%			56.87	%
Per share data:
Net income attributable to common shareholders		$	22,800			$	20,346			$	26,066			$	20,719			$	24,712			$	51,084
Basic net income per common share		$	0.51			$	0.45			$	0.58			$	0.46			$	0.55			$	1.14
Diluted net income per common share		$	0.51			$	0.45			$	0.58			$	0.46			$	0.55			$	1.14
Weighted average diluted common shares			45,145,214				45,086,471				45,009,574				44,960,455				44,888,759				44,872,582
Dividends declared per share		$	0.34			$	0.34			$	0.34			$	0.34			$	0.34			$	0.34
Non-interest income:
Service charges on deposit accounts			2,939				2,817				2,749				2,704				2,606				2,388
Mortgage banking activities			1,621				1,374				792				1,682				1,817				1,245
Wealth management income			10,455				9,958				9,219				9,391				9,031				8,992
Income from bank owned life insurance			1,816				1,160				1,207				845				1,251				907
Bank card fees			445				413				454				450				447				418
Other income			2,311				2,645				2,139				2,319				2,024				2,001
Total non-interest income		$	19,587			$	18,367			$	16,560			$	17,391			$	17,176			$	15,951
Non-interest expense:
Salaries and employee benefits		$	37,821			$	36,698			$	35,482			$	44,853			$	40,931			$	38,926
Occupancy expense of premises			4,805				4,816				4,558				4,609				4,764				4,847
Equipment expenses			3,868				3,963				3,987				3,811				3,760				4,117
Marketing			1,288				742				1,242				729				1,589				1,543
Outside data services			3,286				3,103				3,000				2,819				2,853				2,514
FDIC insurance			2,951				2,911				2,615				2,333				2,375				2,138
Amortization of intangible assets			2,135				2,069				1,403				1,245				1,269				1,306
Professional fees and services			4,946				4,880				5,628				4,509				4,161				3,684
Other expenses			7,004				8,824				9,227				7,563				7,434				7,230
Total non-interest expense		$	68,104			$	68,006			$	67,142			$	72,471			$	69,136			$	66,305

Sandy Spring Bancorp, Inc. and Subsidiaries
HISTORICAL TRENDS - QUARTERLY FINANCIAL DATA - UNAUDITED

		2024								2023
(Dollars in thousands, except per share data)		Q2				Q1				Q4				Q3				Q2				Q1
Balance sheets at quarter end:
Commercial investor real estate loans		$	4,933,329			$	4,997,879			$	5,104,425			$	5,137,694			$	5,131,210			$	5,167,456
Commercial owner-occupied real estate loans			1,747,708				1,741,113				1,755,235				1,760,384				1,770,135				1,769,928
Commercial AD&C loans			1,184,296				1,090,259				988,967				938,673				1,045,742				1,046,665
Commercial business loans			1,601,510				1,509,592				1,504,880				1,454,709				1,423,614				1,437,478
Residential mortgage loans			1,521,890				1,511,624				1,474,521				1,432,051				1,385,743				1,328,524
Residential construction loans			78,027				97,685				121,419				160,345				190,690				223,456
Consumer loans			417,161				416,132				417,542				416,436				422,505				421,734
Total loans			11,483,921				11,364,284				11,366,989				11,300,292				11,369,639				11,395,241
Allowance for credit losses - loans			(125,863	)			(123,096	)			(120,865	)			(123,360	)			(120,287	)			(117,613	)
Loans held for sale			18,961				16,627				10,836				19,235				21,476				16,262
Investment securities			1,401,511				1,405,490				1,414,453				1,392,078				1,463,554				1,528,336
Total assets			14,008,343				13,888,133				14,028,172				14,135,085				13,994,545				14,129,007
Noninterest-bearing demand deposits			2,931,405				2,817,928				2,914,161				3,013,905				3,079,896				3,228,678
Total deposits			11,340,228				11,227,200				10,996,538				11,151,012				10,958,922				11,075,991
Customer repurchase agreements			75,038				71,529				75,032				66,581				74,510				47,627
Total stockholders' equity			1,599,004				1,589,364				1,588,142				1,537,914				1,539,032				1,536,865
Quarterly average balance sheets:
Commercial investor real estate loans		$	4,964,406			$	5,057,334			$	5,125,028			$	5,125,459			$	5,146,632			$	5,136,204
Commercial owner-occupied real estate loans			1,734,106				1,746,042				1,755,048				1,769,717				1,773,039				1,769,680
Commercial AD&C loans			1,133,506				1,030,763				960,646				995,682				1,057,205				1,082,791
Commercial business loans			1,551,798				1,508,336				1,433,035				1,442,518				1,441,489				1,444,588
Residential mortgage loans			1,518,748				1,491,277				1,451,614				1,406,929				1,353,809				1,307,761
Residential construction loans			86,638				110,456				142,325				174,204				211,590				223,313
Consumer loans			417,206				417,539				419,299				421,189				423,306				424,122
Total loans			11,406,408				11,361,747				11,286,995				11,335,698				11,407,070				11,388,459
Loans held for sale			14,497				8,142				10,132				13,714				17,480				8,324
Investment securities			1,538,624				1,536,127				1,544,173				1,589,342				1,639,324				1,679,593
Interest-earning assets			13,292,995				13,411,810				13,462,583				13,444,117				13,423,589				13,316,165
Total assets			13,956,261				14,061,935				14,090,423				14,086,342				14,094,653				13,949,276
Noninterest-bearing demand deposits			2,790,620				2,730,295				2,958,254				3,041,101				3,137,971				3,480,433
Total deposits			11,245,476				11,086,145				11,089,587				11,076,724				10,928,038				11,049,991
Customer repurchase agreements			62,161				72,836				66,622				67,298				58,382				60,626
Total interest-bearing liabilities			9,441,015				9,583,074				9,418,666				9,332,617				9,257,652				8,806,720
Total stockholders' equity			1,579,582				1,584,902				1,546,312				1,538,553				1,535,465				1,491,929
Financial measures:
Average equity to average assets			11.32	%			11.27	%			10.97	%			10.92	%			10.89	%			10.70	%
Average investment securities to average earning assets			11.57	%			11.45	%			11.47	%			11.82	%			12.21	%			12.61	%
Average loans to average earning assets			85.81	%			84.71	%			83.84	%			84.32	%			84.98	%			85.52	%
Loans to assets			81.98	%			81.83	%			81.03	%			79.94	%			81.24	%			80.65	%
Loans to deposits			101.27	%			101.22	%			103.37	%			101.34	%			103.75	%			102.88	%
Assets under management		$	6,215,697			$	6,165,509			$	5,999,520			$	5,536,499			$	5,742,888			$	5,477,560
Capital measures:
Tier 1 leverage(1)			9.70	%			9.56	%			9.51	%			9.50	%			9.42	%			9.44	%
Common equity tier 1 capital to risk-weighted assets(1)			11.28	%			10.96	%			10.90	%			10.83	%			10.65	%			10.53	%
Tier 1 capital to risk-weighted assets(1)			11.28	%			10.96	%			10.90	%			10.83	%			10.65	%			10.53	%
Total regulatory capital to risk-weighted assets(1)			15.49	%			15.05	%			14.92	%			14.85	%			14.60	%			14.43	%
Book value per common share		$	35.45			$	35.37			$	35.36			$	34.26			$	34.31			$	34.37
Outstanding common shares			45,109,671				44,940,147				44,913,561				44,895,158				44,862,369				44,712,497

(1)		Estimated ratio at June 30, 2024.

Sandy Spring Bancorp, Inc. and Subsidiaries
LOAN PORTFOLIO QUALITY DETAIL - UNAUDITED

		2024								2023
(Dollars in thousands)		June 30,				March 31,				December 31,				September 30,				June 30,				March 31,
Non-performing assets:
Loans 90 days past due:
Commercial real estate:
Commercial investor real estate		$	—			$	—			$	—			$	—			$	—			$	215
Commercial owner-occupied real estate			—				—				—				—				—				—
Commercial AD&C			—				—				—				—				—				—
Commercial business			—				20				20				415				29				3,002
Residential real estate:
Residential mortgage			338				340				342				—				692				352
Residential construction			—				—				—				—				—				—
Consumer			—				—				—				—				—				—
Total loans 90 days past due			338				360				362				415				721				3,569
Non-accrual loans:
Commercial real estate:
Commercial investor real estate			55,498				55,579				58,658				20,108				20,381				15,451
Commercial owner-occupied real estate			9,403				4,394				4,640				4,744				4,846				4,949
Commercial AD&C			2,127				556				1,259				1,422				569				—
Commercial business			8,455				7,164				10,051				9,671				9,393				9,443
Residential real estate:
Residential mortgage			12,228				11,835				12,332				10,766				10,153				8,935
Residential construction			539				542				443				449				—				—
Consumer			4,400				4,011				4,102				4,187				3,396				4,900
Total non-accrual loans			92,650				84,081				91,485				51,347				48,738				43,678
Total non-performing loans			92,988				84,441				91,847				51,762				49,459				47,247
Other real estate owned (OREO)			2,700				2,700				—				261				611				645
Total non-performing assets		$	95,688			$	87,141			$	91,847			$	52,023			$	50,070			$	47,892

		For the Quarter Ended,
(Dollars in thousands)		June 30, 2024				March 31, 2024				December 31, 2023				September 30, 2023				June 30, 2023				March 31, 2023
Analysis of non-accrual loan activity:
Balance at beginning of period		$	84,081			$	91,485			$	51,347			$	48,738			$	43,678			$	34,782
Non-accrual balances transferred to OREO			—				(2,700	)			—				—				—				—
Non-accrual balances charged-off			—				(1,550	)			—				(183	)			(2,049	)			(126	)
Net payments or draws			(1,427	)			(4,017	)			(7,619	)			(1,545	)			(1,654	)			(10,212	)
Loans placed on non-accrual			10,038				1,490				47,920				4,967				9,276				19,714
Non-accrual loans brought current			(42	)			(627	)			(163	)			(630	)			(513	)			(480	)
Balance at end of period		$	92,650			$	84,081			$	91,485			$	51,347			$	48,738			$	43,678
Analysis of allowance for credit losses - loans:
Balance at beginning of period		$	123,096			$	120,865			$	123,360			$	120,287			$	117,613			$	136,242
Provision/ (credit) for credit losses - loans			2,961				3,331				(2,574	)			3,171				4,454				(18,945	)
Less loans charged-off, net of recoveries:
Commercial real estate:
Commercial investor real estate			(3	)			(2	)			(3	)			(3	)			(14	)			(5	)
Commercial owner-occupied real estate			(27	)			(27	)			(27	)			(25	)			(27	)			(26	)
Commercial AD&C			(23	)			(283	)			—				—				—				—
Commercial business			(28	)			1,550				(105	)			15				363				(127	)
Residential real estate:
Residential mortgage			39				(6	)			(6	)			(4	)			35				21
Residential construction			—				—				—				—				—				—
Consumer			236				(132	)			62				115				1,423				(179	)
Net charge-offs/ (recoveries)			194				1,100				(79	)			98				1,780				(316	)
Balance at the end of period		$	125,863			$	123,096			$	120,865			$	123,360			$	120,287			$	117,613
Asset quality ratios:
Non-performing loans to total loans			0.81	%			0.74	%			0.81	%			0.46	%			0.44	%			0.41	%
Non-performing assets to total assets			0.68	%			0.63	%			0.65	%			0.37	%			0.36	%			0.34	%
Allowance for credit losses to loans			1.10	%			1.08	%			1.06	%			1.09	%			1.06	%			1.03	%
Allowance for credit losses to non-performing loans			135.35	%			145.78	%			131.59	%			238.32	%			243.21	%			248.93	%
Annualized net charge-offs/ (recoveries) to average loans			0.01	%			0.04	%			—	%			—	%			0.06	%		(0.01		)%

Sandy Spring Bancorp, Inc. and Subsidiaries
CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES - UNAUDITED

		Three Months Ended June 30,
		2024											2023
(Dollars in thousands and tax-equivalent)		Average Balances				Interest(1)				Annualized Average Yield/Rate			Average Balances				Interest(1)				Annualized Average Yield/Rate
Assets
Commercial investor real estate loans		$	4,964,406			$	58,729			4.76	%		$	5,146,632			$	58,784			4.58	%
Commercial owner-occupied real estate loans			1,734,106				20,763			4.82				1,773,039				20,575			4.65
Commercial AD&C loans			1,133,506				22,973			8.15				1,057,205				20,663			7.84
Commercial business loans			1,551,798				26,012			6.74				1,441,489				22,715			6.32
Total commercial loans			9,383,816				128,477			5.51				9,418,365				122,737			5.23
Residential mortgage loans			1,518,748				13,940			3.67				1,353,809				11,957			3.53
Residential construction loans			86,638				1,076			5.00				211,590				1,808			3.43
Consumer loans			417,206				8,499			8.19				423,306				8,325			7.89
Total residential and consumer loans			2,022,592				23,515			4.66				1,988,705				22,090			4.45
Total loans(2)			11,406,408				151,992			5.36				11,407,070				144,827			5.09
Loans held for sale			14,497				309			8.53				17,480				307			7.04
Taxable securities			1,200,676				7,216			2.40				1,289,529				6,848			2.12
Tax-advantaged securities			337,948				2,308			2.73				349,795				2,248			2.57
Total investment securities(3)			1,538,624				9,524			2.48				1,639,324				9,096			2.22
Interest-bearing deposits with banks			332,932				4,424			5.34				359,093				4,922			5.50
Federal funds sold			534				3			2.73				622				4			2.87
Total interest-earning assets			13,292,995				166,252			5.03				13,423,589				159,156			4.75
Less: allowance for credit losses - loans			(123,431	)										(117,587	)
Cash and due from banks			84,968											96,487
Premises and equipment, net			59,574											70,691
Other assets			642,155											621,473
Total assets		$	13,956,261										$	14,094,653
Liabilities and Stockholders' Equity
Interest-bearing demand deposits		$	1,498,287			$	6,701			1.80	%		$	1,439,418			$	3,606			1.00	%
Regular savings deposits			1,644,533				14,376			3.52				609,721				1,897			1.25
Money market savings deposits			2,789,038				25,545			3.68				3,041,652				22,516			2.97
Time deposits			2,522,998				27,787			4.43				2,699,276				23,306			3.46
Total interest-bearing deposits			8,454,856				74,409			3.54				7,790,067				51,325			2.64
Repurchase agreements			62,161				315			2.04				58,382				184			1.26
Federal funds purchased and Federal Reserve Bank borrowings			52,989				737			5.58				320,661				4,007			5.01
Advances from FHLB			500,000				5,420			4.36				718,132				8,216			4.59
Subordinated debt			371,009				3,947			4.25				370,410				3,947			4.26
Total borrowings			986,159				10,419			4.25				1,467,585				16,354			4.47
Total interest-bearing liabilities			9,441,015				84,828			3.61				9,257,652				67,679			2.93
Noninterest-bearing demand deposits			2,790,620											3,137,971
Other liabilities			145,044											163,565
Stockholders' equity			1,579,582											1,535,465
Total liabilities and stockholders' equity		$	13,956,261										$	14,094,653
Tax-equivalent net interest income and spread						$	81,424			1.42	%						$	91,477			1.82	%
Less: tax-equivalent adjustment							1,139											1,006
Net interest income						$	80,285										$	90,471
Interest income/earning assets										5.03	%										4.75	%
Interest expense/earning assets										2.57											2.02
Net interest margin										2.46	%										2.73	%

(1)		Tax-equivalent income has been adjusted using the combined marginal federal and state rate of 25.37% and 25.47% for 2024 and 2023, respectively. The annualized taxable-equivalent adjustments utilized in the above table to compute yields aggregated to $1.1 million and $1.0 million in 2024 and 2023, respectively.
(2)		Non-accrual loans are included in the average balances.
(3)		Available-for-sale investments are presented at amortized cost.

Sandy Spring Bancorp, Inc. and Subsidiaries
CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES - UNAUDITED

		Six Months Ended June 30,
		2024											2023
(Dollars in thousands and tax-equivalent)		Average Balances				Interest(1)				Annualized Average Yield/Rate			Average Balances				Interest(1)				Annualized Average Yield/Rate
Assets
Commercial investor real estate loans		$	5,010,870			$	118,371			4.75	%		$	5,141,447			$	116,585			4.57	%
Commercial owner-occupied real estate loans			1,740,074				41,481			4.79				1,771,369				40,173			4.57
Commercial AD&C loans			1,082,134				44,226			8.22				1,069,927				40,502			7.63
Commercial business loans			1,530,067				52,073			6.84				1,443,030				44,915			6.28
Total commercial loans			9,363,145				256,151			5.50				9,425,773				242,175			5.18
Residential mortgage loans			1,505,013				27,745			3.69				1,330,912				23,375			3.51
Residential construction loans			98,547				2,332			4.76				217,419				3,622			3.36
Consumer loans			417,372				17,040			8.21				423,711				15,912			7.57
Total residential and consumer loans			2,020,932				47,117			4.67				1,972,042				42,909			4.37
Total loans(2)			11,384,077				303,268			5.35				11,397,815				285,084			5.04
Loans held for sale			11,320				437			7.72				12,927				459			7.10
Taxable securities			1,194,561				13,879			2.32				1,293,626				13,856			2.14
Tax-advantaged securities			342,815				4,563			2.66				365,721				4,458			2.44
Total investment securities(3)			1,537,376				18,442			2.40				1,659,347				18,314			2.21
Interest-bearing deposits with banks			419,197				11,210			5.38				299,606				7,608			5.12
Federal funds sold			434				8			3.79				477				8			3.50
Total interest-earning assets			13,352,404				333,365			5.02				13,370,172				311,473			4.69
Less: allowance for credit losses - loans			(121,459	)										(127,189	)
Cash and due from banks			83,817											95,776
Premises and equipment, net			59,675											69,202
Other assets			634,662											614,403
Total assets		$	14,009,099										$	14,022,364
Liabilities and Stockholders' Equity
Interest-bearing demand deposits		$	1,487,624			$	12,602			1.70	%		$	1,410,797			$	6,236			0.89	%
Regular savings deposits			1,544,623				27,256			3.55				557,830				2,260			0.82
Money market savings deposits			2,760,165				50,191			3.66				3,170,010				43,854			2.79
Time deposits			2,612,942				57,726			4.44				2,541,784				39,763			3.15
Total interest-bearing deposits			8,405,354				147,775			3.54				7,680,421				92,113			2.42
Repurchase agreements			67,498				709			2.11				59,498				205			0.69
Federal funds purchased and Federal Reserve Bank borrowings			145,181				3,729			5.16				246,354				6,090			4.99
Advances from FHLB			523,077				11,393			4.38				676,823				15,423			4.60
Subordinated debt			370,935				7,893			4.26				370,334				7,893			4.26
Total borrowings			1,106,691				23,724			4.31				1,353,009				29,611			4.41
Total interest-bearing liabilities			9,512,045				171,499			3.62				9,033,430				121,724			2.72
Noninterest-bearing demand deposits			2,760,458											3,308,256
Other liabilities			154,354											166,861
Stockholders' equity			1,582,242											1,513,817
Total liabilities and stockholders' equity		$	14,009,099										$	14,022,364
Tax-equivalent net interest income and spread						$	161,866			1.40	%						$	189,749			1.97	%
Less: tax-equivalent adjustment							2,238											1,976
Net interest income						$	159,628										$	187,773
Interest income/earning assets										5.02	%										4.69	%
Interest expense/earning assets										2.58											1.83
Net interest margin										2.44	%										2.86	%

(1)		Tax-equivalent income has been adjusted using the combined marginal federal and state rate of 25.37% and 25.47% for 2024 and 2023, respectively. The annualized taxable-equivalent adjustments utilized in the above table to compute yields aggregated to $2.2 million and $2.0 million in 2024 and 2023, respectively.
(2)		Non-accrual loans are included in the average balances.
(3)		Available-for-sale investments are presented at amortized cost.