GlobeNewswire Inc | Oct 22, 2020 07:00AM EDT

October 22, 2020

OLNEY, Md., Oct. 22, 2020 (GLOBE NEWSWIRE) -- Sandy Spring Bancorp, Inc., (Nasdaq-SASR), the parent company of Sandy Spring Bank, today reported record net income of $44.6 million ($0.94 per diluted common share) for the third quarter of 2020. The current quarters result compares to net income of $29.4 million ($0.82 per diluted common share) for the third quarter of 2019 and a loss of $14.3 million ($0.31 per diluted common share) for the second quarter of 2020.

Operating earnings for the current quarter, which excludes the impact of merger and acquisition expense, the provision for credit losses and the effects from the Paycheck Protection Program (PPP or PPP program), each on an after-tax basis, were $45.9 million ($0.97 per diluted common share), compared to $30.8 million ($0.86 per diluted common share) for the quarter ended September 30, 2019 and $42.0 million ($0.88 per diluted common share) for the quarter ended June 30, 2020.

The current quarters results included $1.3 million for merger and acquisition expense related to the second quarter acquisition of Revere Bank (Revere) as compared to $22.5 million for the linked quarter. The provision for credit losses for the current quarter was $7.0 million as compared to $58.7 million for the second quarter of 2020. The decrease in the provision for credit losses compared to the prior quarter is a result of the stability of the economic forecast compared to the prior quarter and resiliency of the loan portfolios credit quality.

The record net income and earnings per share that we delivered clearly reflect the value of our Revere Bank acquisition, though we have yet to realize the full potential of the transaction, said Daniel J. Schrider, President and Chief Executive Officer. Our team seamlessly completed the systems integration of Revere Bank in the third quarter, notwithstanding the challenging work environment necessitated by the COVID-19 pandemic. As a result, the former Revere clients now have access to all Sandy Spring Bank services and locations. We remain focused on strengthening our client relationships and working closely with borrowers to see them through these extraordinary times.

Third Quarter Highlights:

-- Total assets at September 30, 2020, grew 50% to $12.7 billion compared to September 30, 2019 primarily as a result of the Revere acquisition and participation in the PPP. Loans and deposits grew by 57% and 53%, respectively. On the date of acquisition, Reveres loans and deposits were $2.5 billion and $2.3 billion, respectively. The Company originated $1.1 billion in commercial business loans through the PPP. -- The net interest margin was 3.24% for the third quarter of 2020, compared to 3.51% for the same quarter of 2019, and 3.47% for the second quarter of 2020. Excluding the impact of the amortization of the fair value marks derived from acquisitions, the current quarters net interest margin would have been 3.18%, compared to 3.47% for third quarter of 2019, and 3.19% for the second quarter of 2020. -- The provision for credit losses was $7.0 million for the current quarter. The lower provision for the current quarter as compared to the prior quarters provision of $58.7 million was the result of the stabilization in economic projections compared to the prior quarter and resiliency of the loan portfolios credit quality. -- Non-interest income increased from the prior year quarter by 58% to $29.4 million, as a result of a 220% increase in income from mortgage banking activities and growth of 42% in wealth management income as a result of the acquisition of Rembert Pendleton Jackson (RPJ) in the first quarter of the year. -- Non-interest expense for the third quarter of 2020 increased $16.0 million or 36% compared to the prior year quarter. This increase was driven by the impact of the acquisition of Revere and RPJ, which increased compensation costs, facilities and operational costs and merger and acquisition expenses. -- Return on average assets (ROA) for the quarter ended September 30, 2020 was 1.38% and return on average on tangible common equity (ROTCE) was 18.16%. This compares to 1.39% and 15.13% for ROA and ROTCE, respectively, for the prior year. The non-GAAP efficiency ratio for the third quarter of 2020 was 45.27% compared to 50.95% for the third quarter of 2019.

Response to COVID-19

The Company continues to focus on protecting the health and well-being of its employees and clients and assisting clients who have been impacted by the COVID-19 pandemic. A substantial majority of non-branch employees continue to work remotely and clients are served at branches primarily through drive-thru facilities and limited lobby access. Area jurisdictions continue to monitor and modify their respective pandemic guidelines on a periodic basis. Currently, the Company is maintaining its first phase of its return to work plan.

The Companys participation in the Small Business Administrations PPP has resulted in the approval of over 5,400 loans for a total of $1.1 billion in loans to businesses to assist them in maintaining their payroll of an estimated 112,000 employees and cover applicable overhead. The Company is developing a digital PPP forgiveness application that will be submitted to the SBA. The Company anticipates launching the forgiveness application in its PPP client portal in the coming weeks.

The Company has provided for deferment of certain loan payments up to 90 days to provide relief to our qualified commercial, mortgage and consumer loan customers. From March through October 12, 2020, the Company granted payment modifications/deferrals on over 2,500 loans with an aggregate balance of $2.0 billion, of which 481 loans with an aggregate balance of $502 million remain in deferral status.

For additional information about the Companys response to the COVID-19 pandemic, segments of the Companys loan portfolio exposed to industries adversely impacted by the pandemic, and our response to clients who sought loan payment deferral, we have provided supplemental materials available at the Investor Relations section of the Sandy Spring Website at www.sandyspringbank.com.

Balance Sheet and Credit Quality

Total assets grew to $12.7 billion at September 30, 2020, as compared to $8.4 billion at September 30, 2019, primarily as a result of the acquisition of Revere during the second quarter of the current year. In addition, the Companys participation in the PPP program had a further positive impact on the year-over-year asset growth. During this period, total loans grew by 57% to $10.3 billion at September 30, 2020, compared to $6.6 billion at September 30, 2019. Excluding PPP loans, total loans grew 41% to $9.3 billion at September 30, 2020 as compared to the prior year quarter. Commercial loans, excluding PPP loans, grew 55% or $2.6 billion while the remainder of the loan portfolio grew 2%. The majority of the commercial loan growth was driven by the acquisition of Revere. Consumer loans grew 9% due to the Revere acquisition. Deposit growth was 53% from September 30, 2019 through September 30, 2020, as noninterest-bearing deposits experienced growth of 66% and interest-bearing deposits grew 47%. This growth was driven primarily by the Revere acquisition. During the current quarter, excess liquidity was used to reduce borrowings under the Paycheck Protection Program Liquidity Facility (PPPLF) program by approximately $580 million.

At September 30, 2020, tangible common equity increased to $1.0 billion or 8.17% of tangible assets compared to $787.3 million or 9.74% at September 30, 2019, as a result of the equity issuance in the Revere acquisition. The year-over-year change in tangible common equity also reflects the effects of the repurchase of $50 million of common stock and the increase in intangible assets and goodwill associated with the two acquisitions during the past twelve months. At September 30, 2020, the Company had a total risk-based capital ratio of 14.02%, a common equity tier 1 risk-based capital ratio of 10.45%, a tier 1 risk-based capital ratio of 10.45% and a tier 1 leverage ratio of 8.65%.

The level of non-performing loans to total loans increased to 0.72% at September 30, 2020, compared to 0.61% at September 30, 2019, and decreased from 0.77% at June 30, 2020. At September 30, 2020, non-performing loans totaled $74.7 million, compared to $40.1 million at September 30, 2019, and $79.9 million at June 30, 2020. Non-performing loans include accruing loans 90 days or more past due and restructured loans. The year-over-year growth in non-performing loans was driven by three major components: loans placed in non-accrual status, acquired Revere non-accrual loans, and loans previously accounted for as purchased credit impaired loans that have been designated as non-accrual loans as a result of the Companys adoption of the accounting standard for expected credit losses at the beginning of the year. Loans placed on non-accrual during the current quarter amounted to $0.9 million compared to $6.0 million for the prior year quarter and $27.3 million for the second quarter of 2020, which included $11.3 million in Revere non-accrual loans as of the acquisition date.

The Company recorded net charge-offs of $0.2 million for the third quarter of 2020, as compared to net charge-offs of $0.6 million and net recoveries of $0.4 million for the third quarter of 2019 and the second quarter of 2020, respectively.

At September 30, 2020, the allowance for credit losses was $170.3 million or 1.65% of outstanding loans and 228% of non-performing loans, compared to $163.5 million or 1.58% of outstanding loans and 205% of non-performing loans at June 30, 2020. The modest increase in the allowance from the linked quarter resulted from the combination of the impact of the updated projected future economic metrics and qualitative assessment of the loan portfolio.

Income Statement Review

Quarterly Results

Net interest income for the third quarter of 2020 increased 46% compared to the third quarter of 2019, driven primarily by the acquisition of Revere. The PPP program and its associated funding contributed a net of $6.6 million to net interest income for the quarter. The net interest margin declined to 3.24% for the third quarter of 2020, compared to 3.51% for the third quarter of 2019. Excluding the net $1.9 million impact of the amortization of the fair value marks derived from acquisitions, the net interest margin would have been 3.18%.

The provision for credit losses was $7.0 million for the third quarter of 2020, compared to $1.5 million for the third quarter of 2019 and $58.7 million for the second quarter of 2020. The decrease in the current quarters provision for credit losses, compared to the prior quarter, is a result of the stability of economic forecast compared to the prior quarter and resiliency of the loan portfolios credit quality. The provision for credit losses during the second quarter was primarily the result of deterioration in forecasted economic conditions ($33.8 million) and the initial allowance required on Revere non-purchased credit deteriorated loans ($17.5 million).

Non-interest income increased $10.8 million or 58% during the current quarter compared the same quarter of the prior year. During this period, income from mortgage banking activities increased $9.7 million as a result of a high level of refinancing activity and wealth management income increased $2.3 million as a result of the first quarter acquisition of RPJ. This growth more than compensated for the $1.4 million of the combined declines in service fee and other non-interest income as compared to the prior year quarter.

Non-interest expense grew 36% or $16.0 million from the prior year quarter. Excluding the impact of merger and acquisition expense, non-interest expense grew 34% year-over-year, primarily as a result of the operational cost of the Revere and RPJ acquisitions, increased compensation expense related to staffing increases, incentive compensation and annual merit increases, in addition to an increase in FDIC insurance and the amortization of intangible assets.

The non-GAAP efficiency ratio was 45.27% for the current quarter as compared to 50.95% for the third quarter of 2019 and 43.85% for the second quarter of 2020. The decrease in the efficiency ratio (reflecting an increase in efficiency) from the third quarter of last year to the current year was the result of the $41.0 million growth in non-GAAP revenue outpacing the $13.6 million growth in non-GAAP non-interest expense.

Year to Date Results

Net interest income for the nine months ended September 30, 2020 increased 32% or $63.6 million compared to the same period of 2019. This increase was driven primarily by the acquisition of Revere in the second quarter of the current year. Additionally, the income generated by the PPP program, net of its associated funding, contributed a net of $12.1 million to the growth in net interest income year-over-year. The net interest margin declined to 3.33% for the nine months ended September 30, 2020, compared to 3.55% for the same period of the prior year. Excluding the net $10.5 million impact of the amortization of the fair value marks derived from acquisitions, the net interest margin would have been 3.21%. Included in the current period net interest income is a benefit realized from the accelerated amortization of the $5.8 million purchase premium on acquired FHLB advances as a result of the prepayment of those borrowings.

The provision for credit losses for the nine months ended September 30, 2020 amounted to $90.2 million as compared to $3.0 million for the same period in 2019. The provision for credit losses under the CECL standard reflects the combined results of the impact of the deteriorated economic forecasts during the year ($59.3 million) and the initial allowance on acquired Revere non-purchased credit deteriorated loans ($17.5 million). The change in the portfolio mix and various qualitative adjustments resulted in the remainder of provision growth for the period.

Non-interest income rose to $70.5 million or 35% above prior year levels. Income from mortgage banking activities increased $15.0 million as a result of the high levels of refinancing activity, and wealth management income increased $6.1 million as a result of the first quarter acquisition of RPJ. These increases more than offset declines in deposit service fees, the reduction in BOLI income, due to the absence of mortality income that occurred in 2019, and lower other non-interest income.

Non-interest expense increased 46% or $61.1 million for the first nine months of 2020, compared to the first nine months of 2019. Merger and acquisition expense accounted for $24.8 million of the growth of non-interest expense. The non-interest expense growth also included $5.9 million in prepayment penalties resulting from the liquidation of acquired FHLB borrowings. Excluding the impact of these items results in a year-over-year growth rate of 23%. This growth rate was driven by operational and compensation cost associated with the Revere and RPJ acquisitions, increased incentive expense related to the significant level of mortgage loan originations, intangible amortization and annual employee merit increases.

The effective tax rate for the nine months ended September 30, 2020 was 18.7%, compared to 24.0% for the same period in 2019. This decrease was the result of the recent changes to tax laws that expanded the time permitted to utilize previous net operating losses. The Company applied this change to the 2018 acquisition of WashingtonFirst Bankshares, Inc. to realize a tax benefit of $1.8 million for the current year.

The non-GAAP efficiency ratio for the current year-to-date was 47.10% compared to 51.36% for the prior year period. The improvement in the current years efficiency ratio compared to the prior year was the result of the growth in non-GAAP revenue, which outpaced the growth in non-GAAP non-interest expense.

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 Companys 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 companys 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 intangible assets. -- The non-GAAP efficiency ratio is non-GAAP in that it excludes amortization of intangible assets, loss on FHLB redemption, merger and acquisition expense and securities gains and includes tax-equivalent income. -- Operating earnings - and the related measures of operating earnings per share, operating return on average assets and operating return on average tangible common equity - reflect net income exclusive of the provision for credit losses, merger and acquisition expense and the income and expense associated with the PPP program, in each case net of tax.

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 which 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 Companys management will host a conference call to discuss its third 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 1-866-235-9910. A password is not necessary. 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 9:00 am (ET) November 5, 2020. A replay of the teleconference will be available through the same time period by calling 1-877-344-7529 under conference call number 10148248.

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. Withover 65 locations, the bank offers a broad range ofcommercialandretail banking,mortgage,private banking, andtrustservices throughout Maryland, Northern Virginia, and Washington, D.C. Through its subsidiaries,Rembert Pendleton Jackson,Sandy Spring Insurance CorporationandWest Financial Services, Inc., Sandy Spring Bank also offers a comprehensive menu ofinsuranceandwealth management services.

For additional information or questions, please contact:Daniel J. Schrider, President & Chief Executive Officer, orPhilip J. Mantua, E.V.P. & Chief Financial OfficerSandy Spring Bancorp17801 Georgia AvenueOlney, Maryland 208321-800-399-5919Email: DSchrider@sandyspringbank.com PMantua@sandyspringbank.com

Website: www.sandyspringbank.comMedia Contact:Jen Schell301-570-8331jschell@sandyspringbank.com

Forward-Looking Statements

Sandy Spring Bancorps forward-looking statements are subject to the following principal risks and uncertainties: risks, uncertainties and other factors relating to the COVID-19 pandemic, including the length of time that the pandemic continues, the imposition or re-imposition of stay-at-home orders and restrictions on business activities or travel the effect of the pandemic on the general economy and on the businesses of our borrowers and their ability to make payments on their obligations; the remedial actions and stimulus measures adopted by federal, state and local governments; the inability of employees to work due to illness, quarantine, or government mandates; general economic conditions and trends, either nationally or locally; conditions in the securities markets; changes in interest rates; changes in deposit flows, and in the demand for deposit, loan, and investment products and other financial services; changes in real estate values; changes in the quality or composition of the Companys loan or investment portfolios; changes in competitive pressures among financial institutions or from non-financial institutions; the Companys ability to retain key members of management; changes in legislation, regulations, and policies; the possibility that any of the anticipated benefits of acquisitions will not be realized or will not be realized within the expected time period; and a variety of other matters which, by their nature, are subject to significant uncertainties. Sandy Spring Bancorp provides greater detail regarding some of these factors in its Form 10-K for the year ended December 31, 2019, including in the Risk Factors section of that report, and in its other SEC reports. Sandy Spring Bancorps 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 SECs Web site at www.sec.gov.

Sandy SpringBancorp, Inc. and SubsidiariesFINANCIALHIGHLIGHTS - UNAUDITED Three Months Ended Nine Months Ended September 30, % September 30, %(Dollars inthousands, 2020 2019 Change 2020 2019 Changeexcept per sharedata)Results of Operations:Net interest $ 97,484 $ 66,790 46 % $ 263,332 $ 199,725 32 %incomeProvision for 7,003 1,524 n.m 90,158 3,029 n.m credit lossesNon-interest 29,390 18,573 58 70,482 52,098 35 incomeNon-interest 60,937 44,925 36 194,121 133,004 46 expenseIncome before 58,934 38,914 51 49,535 115,790 (57 )income taxesNet income 44,642 29,383 52 40,291 87,976 (54 ) Net incomeattributable to $ 44,268 $ 29,196 52 $ 39,974 $ 87,407 (54 )commonshareholdersPre-taxpre-provision $ 67,200 $ 40,802 65 $ 164,864 $ 119,183 38 pre-mergerincome (1) Return on 1.38 % 1.39 % 0.47 % 1.42 % average assetsReturn onaverage common 12.67 % 10.38 % 4.12 % 10.71 % equityReturn onaverage tangible 18.16 % 15.13 % 5.93 % 15.66 % common equityNet interest 3.24 % 3.51 % 3.33 % 3.55 % marginEfficiency ratio 48.03 % 52.63 % 58.15 % 52.82 % - GAAP basis (2)Efficiency ratio- Non-GAAP basis 45.27 % 50.95 % 47.10 % 51.36 % (2) Per share data: Basic net income $ 0.94 $ 0.82 15 % $ 0.93 $ 2.46 (62 )%per common shareDiluted netincome per $ 0.94 $ 0.82 15 $ 0.93 $ 2.45 (62 )common shareWeighted averagediluted common 47,175,071 35,671,721 32 43,070,672 35,642,556 21 sharesDividendsdeclared per $ 0.30 $ 0.30 - $ 0.90 $ 0.88 2 shareBook value per 30.30 32.00 (5 ) 30.30 32.00 (5 )common shareTangible bookvalue per common 21.32 22.10 (4 ) 21.32 22.10 (4 )share (1)Outstanding 47,025,779 35,625,822 32 47,025,779 35,625,822 32 common shares FinancialCondition at period-end:Investment $ 1,425,733 $ 946,210 51 % $ 1,425,733 $ 946,210 51 %securitiesLoans 10,333,935 6,596,548 57 10,333,935 6,596,548 57 Interest-earning 11,965,915 7,742,138 55 11,965,915 7,742,138 55 assetsAssets 12,678,131 8,437,538 50 12,678,131 8,437,538 50 Deposits 9,964,969 6,493,899 53 9,964,969 6,493,899 53 Interest-bearing 7,643,381 5,093,265 50 7,643,381 5,093,265 50 liabilitiesStockholders' 1,424,749 1,140,041 25 1,424,749 1,140,041 25 equity Capital ratios: Tier 1 leverage 8.65 % 9.96 % 8.65 % 9.96 % (3)Common equitytier 1 capital 10.45 % 11.37 % 10.45 % 11.37 % to risk-weightedassets (3)Tier 1 capitalto risk-weighted 10.45 % 11.52 % 10.45 % 11.52 % assets (3)Total regulatorycapital to 14.02 % 12.70 % 14.02 % 12.70 % risk-weightedassets (3)Tangible commonequity to 8.17 % 9.74 % 8.17 % 9.74 % tangible assets(4)Average equityto average 10.92 % 13.42 % 11.39 % 13.22 % assets Credit quality ratios:Allowance forcredit losses to 1.65 % 0.83 % 1.65 % 0.83 % loansNon-performingloans to total 0.72 % 0.61 % 0.72 % 0.61 % loansNon-performingassets to total 0.60 % 0.49 % 0.60 % 0.49 % assetsAllowance forcredit losses to 228.03 % 137.05 % 228.03 % 137.05 % non-performingloansAnnualized netcharge-offs to 0.01 % 0.03 % 0.01 % 0.03 % average loans(5) (1) Represents aNon-GAAP measure.(2) The efficiency ratio - GAAP basis is non-interest expense divided by netinterest income plus non-interest income from the Condensed ConsolidatedStatements of Income.The traditional efficiency ratio - Non-GAAP basisexcludes intangible asset amortization, loss on FHLB redemption, and merger andacquisition expense from non-interest expense;securities gains fromnon-interest income and adds the tax-equivalent adjustment to net interestincome. See the Reconciliation Table included with these Financial Highlights.(3) Estimated ratio at September 30, 2020(4) The tangible common equity to tangible assets ratio is a non-GAAP ratiothat divides assets excluding intangible assets into stockholders' equity afterdeducting intangible assetsand other comprehensive gains (losses). See theReconciliation Table included with these Financial Highlights.(5) Calculation utilizes average loans, excluding residential mortgage loansheld-for-sale.

Sandy SpringBancorp, Inc. andSubsidiariesRECONCILIATIONTABLE - UNAUDITED Three Months Ended Nine Months Ended September 30, September 30,(Dollars in 2020 2019 2020 2019 thousands)Pre-taxpre-provision pre-mergerincome:Net income $ 44,642 $ 29,383 $ 40,291 $ 87,976 Plus non-GAAP adjustments:Merger andacquisition 1,263 364 25,171 364 expenseIncome taxes 14,292 9,531 9,244 27,814 Provision for 7,003 1,524 90,158 3,029 credit lossesPre-taxpre-provision $ 67,200 $ 40,802 $ 164,864 $ 119,183 pre-mergerincome Efficiencyratio - GAAP basis:Non-interest $ 60,937 $ 44,925 $ 194,121 $ 133,004 expense Net interestincome plus $ 126,874 $ 85,363 $ 333,814 $ 251,823 non-interestincome Efficiencyratio - GAAP 48.03 % 52.63 % 58.15 % 52.82 %basis Efficiencyratio - Non-GAAPbasis:Non-interest $ 60,937 $ 44,925 $ 194,121 $ 133,004 expenseLess non-GAAP adjustments:Amortizationof intangible 1,968 491 4,566 1,465 assetsLoss on FHLB - - 5,928 - RedemptionMerger andacquisition 1,263 364 25,171 364 expenseNon-interestexpense - as $ 57,706 $ 44,070 $ 158,456 $ 131,175 adjusted Net interestincome plus $ 126,874 $ 85,363 $ 333,814 $ 251,823 non-interestincomePlus non-GAAP adjustment:Tax-equivalent 643 1,147 3,076 3,597 incomeLess non-GAAP adjustment:Securities 51 15 432 20 gainsNet interestincome plusnon-interest $ 127,466 $ 86,495 $ 336,458 $ 255,400 income - asadjusted Efficiencyratio - 45.27 % 50.95 % 47.10 % 51.36 %Non-GAAP basis Tangiblecommon equity ratio:Totalstockholders' $ 1,424,749 $ 1,140,041 $ 1,424,749 $ 1,140,041 equityAccumulatedother (17,493 ) 2,708 (17,493 ) 2,708 comprehensive(income)/ lossGoodwill (370,549 ) (347,149 ) (370,549 ) (347,149 )Otherintangible (34,175 ) (8,322 ) (34,175 ) (8,322 )assets, netTangible $ 1,002,532 $ 787,278 $ 1,002,532 $ 787,278 common equity Total assets $ 12,678,131 $ 8,437,538 $ 12,678,131 $ 8,437,538 Goodwill (370,549 ) (347,149 ) (370,549 ) (347,149 )Otherintangible (34,175 ) (8,322 ) (34,175 ) (8,322 )assets, netTangible $ 12,273,407 $ 8,082,067 $ 12,273,407 $ 8,082,067 assets Tangiblecommon equity 8.17 % 9.74 % 8.17 % 9.74 %ratio Outstanding 47,025,779 35,625,822 47,025,779 35,625,822 common sharesTangible bookvalue per $ 21.32 $ 22.10 $ 21.32 $ 22.10 common share

Sandy SpringBancorp, Inc. andSubsidiariesRECONCILIATIONTABLE - UNAUDITED(CONTINUED)OPERATINGEARNINGS - METRICS Three Months Ended Nine Months Ended September 30, September 30,(Dollars in 2020 2019 2020 2019 thousands)Operatingearnings (non-GAAP):Net income $ 44,642 $ 29,383 $ 40,291 $ 87,976 Plus non-GAAP adjustments:Provision forcredit losses 5,140 1,133 67,132 2,255 - net of taxMerger andacquisition 919 271 18,742 271 expense - netof taxPPPLF fundingexpense - net 339 - 707 - of taxLess non-GAAP adjustment:PPP interestincome and net 5,226 - 9,709 - deferred fee -net of taxOperatingearnings $ 45,814 $ 30,787 $ 117,163 $ 90,503 (non-GAAP) Operatingearnings per common share(non-GAAP):Weightedaverage commonshares 47,175,071 35,671,721 43,070,672 35,642,556 outstanding -diluted (GAAP) Earnings perdiluted common $ 0.94 $ 0.82 $ 0.93 $ 2.45 share (GAAP)Operatingearnings perdiluted common $ 0.97 $ 0.86 $ 2.72 $ 2.54 share(non-GAAP) Operatingreturn on average assets(non-GAAP):Average assets $ 12,835,893 $ 8,370,789 $ 11,483,477 $ 8,307,929 (GAAP)Average PPP 1,058,792 - 592,500 - loansAdjustedaverage assets $ 11,777,101 $ 8,370,789 $ 10,890,977 $ 8,307,929 (non-GAAP) Return onaverage assets 1.38 % 1.39 % 0.47 % 1.42 %(GAAP)Operatingreturn onadjusted 1.55 % 1.46 % 1.44 % 1.46 %average assets(non-GAAP) Operating returnon average tangible commonequity (non-GAAP)Average totalstockholders' $ 1,401,746 $ 1,123,185 $ 1,307,791 $ 1,098,700 equity (GAAP)Averageaccumulatedother 17,726 (2,837 ) 9,623 (8,438 )comprehensiveincome/ (loss)Average 370,548 347,149 363,906 347,149 goodwillAverage otherintangible 35,470 8,629 26,572 9,118 assets, netAveragetangible $ 978,002 $ 770,244 $ 907,690 $ 750,871 common equity(non-GAAP) Return onaveragetangible 18.16 % 15.13 % 5.93 % 15.66 %common equity(GAAP)Operatingreturn onaverage 18.64 % 15.86 % 17.24 % 16.11 %tangiblecommon equity(non-GAAP)

Sandy Spring Bancorp, Inc. and SubsidiariesCONDENSEDCONSOLIDATED STATEMENTS OFCONDITION - UNAUDITED September 30, December 31, September 30,(Dollars in 2020 2019 2019 thousands)Assets Cash and due from $ 107,364 $ 82,469 $ 89,377 banksFederal funds sold 390 208 253 Interest-bearing 117,129 63,426 120,306 deposits with banksCash and cash 224,883 146,103 209,936 equivalentsResidential mortgageloans held for sale 88,728 53,701 78,821 (at fair value)Investmentsavailable-for-sale 1,357,205 1,073,333 894,272 (at fair value)Other equity 68,528 51,803 51,938 securitiesTotal loans 10,333,935 6,705,232 6,596,548 Less: allowance for (170,314 ) (56,132 ) (54,992 )credit lossesNet loans 10,163,621 6,649,100 6,541,556 Premises and 58,738 58,615 59,487 equipment, netOther real estate 1,389 1,482 1,482 ownedAccrued interest 48,176 23,282 23,438 receivableGoodwill 370,549 347,149 347,149 Other intangible 34,175 7,841 8,322 assets, netOther assets 262,139 216,593 221,137 Total assets $ 12,678,131 $ 8,629,002 $ 8,437,538 Liabilities Noninterest-bearing $ 3,458,804 $ 1,892,052 $ 2,081,435 depositsInterest-bearing 6,506,165 4,548,267 4,412,464 depositsTotal deposits 9,964,969 6,440,319 6,493,899 Securities sold underretail repurchaseagreements and 462,706 213,605 126,008 federal fundspurchasedAdvances from FHLB 444,210 513,777 517,477 Subordinated 230,300 209,406 37,316 debenturesTotal borrowings 1,137,216 936,788 680,801 Accrued interestpayable and other 151,197 118,921 122,797 liabilitiesTotal liabilities 11,253,382 7,496,028 7,297,497 Stockholders' Equity Common stock -- parvalue $1.00; sharesauthorized100,000,000; sharesissued andoutstanding47,025,779, 47,026 34,970 35,626 34,970,370 and35,625,822 atSeptember 30, 2020,December 31, 2019 andSeptember 30, 2019,respectivelyAdditional paid in 845,399 586,622 609,103 capitalRetained earnings 514,831 515,714 498,020 Accumulated othercomprehensive income/ 17,493 (4,332 ) (2,708 )(loss)Total stockholders' 1,424,749 1,132,974 1,140,041 equityTotal liabilities and $ 12,678,131 $ 8,629,002 $ 8,437,538 stockholders' equity

Sandy Spring Bancorp, Inc. and SubsidiariesCONDENSED CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED Three Months Ended Nine Months Ended September 30, September 30,(Dollars inthousands, except per 2020 2019 2020 2019share data)Interest Income: Interest and fees on $ 106,560 $ 79,167 $ 288,721 $ 239,028loansInterest on loans 398 572 1,094 1,145held for saleInterest on deposits 84 783 419 1,405with banksInterest anddividends on investmentsecurities:Taxable for federal 4,488 5,221 17,270 16,302income taxesExempt from federal 1,454 1,337 4,264 4,591income taxesInterest on federal - 2 1 8funds soldTotal interest income 112,984 87,082 311,769 262,479Interest Expense: Interest on deposits 9,439 16,332 35,241 46,958Interest on retailrepurchase agreements 551 257 1,731 945and federal fundspurchasedInterest on advances 2,841 3,222 3,863 13,389from FHLBInterest on 2,669 481 7,602 1,462subordinated debtTotal interest 15,500 20,292 48,437 62,754expenseNet interest income 97,484 66,790 263,332 199,725Provision for credit 7,003 1,524 90,158 3,029lossesNet interest incomeafter provision for 90,481 65,266 173,174 196,696credit lossesNon-interest Income: Investment securities 51 15 432 20gainsService charges on 1,673 2,516 5,149 7,265deposit accountsMortgage banking 14,108 4,408 25,567 10,541activitiesWealth management 7,785 5,493 22,355 16,268incomeInsurance agency 2,122 2,116 5,439 5,281commissionsIncome from bank 708 662 2,162 2,505owned life insuranceBank card fees 1,525 1,462 4,102 4,181Other income 1,418 1,901 5,276 6,037Total non-interest 29,390 18,573 70,482 52,098incomeNon-interest Expense: Salaries and employee 36,041 26,234 98,391 77,699benefitsOccupancy expense of 5,575 4,816 16,147 14,807premisesEquipment expenses 3,133 2,641 9,103 7,929Marketing 1,305 1,541 3,223 3,371Outside data services 2,614 1,973 6,365 5,713FDIC insurance 1,340 (83 ) 3,200 2,137Amortization of 1,968 491 4,566 1,465intangible assetsMerger and 1,263 364 25,171 364acquisition expenseProfessional fees and 1,800 1,546 5,466 4,425servicesOther expenses 5,898 5,402 22,489 15,094Total non-interest 60,937 44,925 194,121 133,004expenseIncome before income 58,934 38,914 49,535 115,790taxesIncome tax expense 14,292 9,531 9,244 27,814Net income $ 44,642 $ 29,383 $ 40,291 $ 87,976 Net Income Per Share Amounts:Basic net income per $ 0.94 $ 0.82 $ 0.93 $ 2.46common shareDiluted net income $ 0.94 $ 0.82 $ 0.93 $ 2.45per common shareDividends declared $ 0.30 $ 0.30 $ 0.90 $ 0.88per share

Sandy SpringBancorp, Inc. and SubsidiariesHISTORICAL TRENDS - QUARTERLY FINANCIAL DATA - UNAUDITED 2020 2019(Dollars inthousands, except Q3 Q2 Q1 Q4 Q3 Q2 Q1per share data)Profitability for the Quarter:Tax-equivalent $ 113,627 $ 116,252 $ 84,966 $ 86,539 $ 88,229 $ 88,423 $ 89,424 interest incomeInterest expense 15,500 13,413 19,524 19,807 20,292 21,029 21,433 Tax-equivalent net 98,127 102,839 65,442 66,732 67,937 67,394 67,991 interest incomeTax-equivalent 643 1,325 1,108 1,149 1,147 1,209 1,241 adjustmentProvision/(credit) for 7,003 58,686 24,469 1,655 1,524 1,633 (128 )credit lossesNon-interest 29,390 22,924 18,168 19,224 18,573 16,556 16,969 incomeNon-interest 60,937 85,438 47,746 46,081 44,925 43,887 44,192 expenseIncome/ (loss)before income 58,934 (19,686 ) 10,287 37,071 38,914 37,221 39,655 taxesIncome tax expense 14,292 (5,348 ) 300 8,614 9,531 8,945 9,338 / (benefit)Net income/ (loss) $ 44,642 $ (14,338 ) $ 9,987 $ 28,457 $ 29,383 $ 28,276 $ 30,317 Financial Performance:Pre-taxpre-provision $ 67,200 $ 61,454 $ 36,210 $ 39,674 $ 40,802 $ 38,854 $ 39,527 pre-merger incomeReturn on average 1.38 % (0.45 )% 0.46 % 1.32 % 1.39 % 1.37 % 1.49 %assetsReturn on average 12.67 % (4.15 )% 3.55 % 9.93 % 10.38 % 10.32 % 11.46 %common equityReturn on averagetangible common 18.16 % (5.80 )% 5.36 % 14.39 % 15.13 % 15.10 % 16.82 %equityNet interest 3.24 % 3.47 % 3.29 % 3.38 % 3.51 % 3.54 % 3.60 %marginEfficiency ratio - 48.03 % 68.66 % 57.87 % 54.34 % 52.63 % 53.04 % 52.79 %GAAP basis (1)Efficiency ratio - 45.27 % 43.85 % 54.76 % 51.98 % 50.95 % 51.71 % 51.44 %Non-GAAP basis (1)Per Share Data: Net income/ (loss)attributable to $ 44,268 $ (14,458 ) $ 9,919 $ 28,274 $ 29,196 $ 28,065 $ 30,120 commonshareholdersBasic net income/(loss) per common $ 0.94 $ (0.31 ) $ 0.29 $ 0.80 $ 0.82 $ 0.79 $ 0.85 shareDiluted net income/ (loss) per $ 0.94 $ (0.31 ) $ 0.28 $ 0.80 $ 0.82 $ 0.79 $ 0.85 common shareWeighted averagediluted common 47,175,071 46,988,351 34,743,623 35,543,254 35,671,721 35,634,924 35,618,346 sharesDividends declared $ 0.30 $ 0.30 $ 0.30 $ 0.30 $ 0.30 $ 0.30 $ 0.28 per shareNon-interest Income:Securities gains $ 51 $ 212 $ 169 $ 57 $ 15 $ 5 $ - Service charges on 1,673 1,223 2,253 2,427 2,516 2,442 2,307 deposit accountsMortgage banking 14,108 8,426 3,033 4,170 4,408 3,270 2,863 activitiesWealth management 7,785 7,604 6,966 6,401 5,493 5,539 5,236 incomeInsurance agency 2,122 1,188 2,129 1,331 2,116 1,265 1,900 commissionsIncome from bankowned life 708 809 645 660 662 654 1,189 insuranceBank card fees 1,525 1,257 1,320 1,435 1,462 1,467 1,252 Other income 1,418 2,205 1,653 2,743 1,901 1,914 2,222 Total Non-interest $ 29,390 $ 22,924 $ 18,168 $ 19,224 $ 18,573 $ 16,556 $ 16,969 IncomeNon-interest Expense:Salaries and $ 36,041 $ 34,297 $ 28,053 $ 26,251 $ 26,234 $ 25,489 $ 25,976 employee benefitsOccupancy expense 5,575 5,991 4,581 4,663 4,816 4,760 5,231 of premisesEquipment expenses 3,133 3,219 2,751 2,791 2,641 2,712 2,576 Marketing 1,305 729 1,189 1,085 1,541 887 943 Outside data 2,614 2,169 1,582 1,854 1,973 1,962 1,778 servicesFDIC insurance 1,340 1,378 482 123 (83 ) 1,084 1,136 Amortization of 1,968 1,998 600 481 491 483 491 intangible assetsMerger andacquisition 1,263 22,454 1,454 948 364 - - expenseProfessional fees 1,800 1,840 1,826 2,553 1,546 1,634 1,245 and servicesOther expenses 5,898 11,363 5,228 5,332 5,402 4,876 4,816 Total Non-interest $ 60,937 $ 85,438 $ 47,746 $ 46,081 $ 44,925 $ 43,887 $ 44,192 Expense (1) The efficiency ratio - GAAP basis is non-interest expense divided by netinterest income plus non-interest income from the Condensed ConsolidatedStatements of Income.The traditional efficiency ratio - Non-GAAP basisexcludes intangible asset amortization, loss on FHLB redemption, and merger andacquisition expense from non-interest expense;securities gains fromnon-interest income; and adds the tax-equivalent adjustment to net interestincome. See the Reconciliation Table included with these Financial Highlights.

Sandy SpringBancorp, Inc. and SubsidiariesHISTORICAL TRENDS - QUARTERLY FINANCIAL DATA - UNAUDITED 2020 2019(Dollars in Q3 Q2 Q1 Q4 Q3 Q2 Q1thousands)Balance Sheets at Quarter End:Commercial investor $ 3,588,702 $ 3,581,778 $ 2,241,240 $ 2,169,156 $ 2,036,021 $ 1,994,027 $ 1,962,879 real estate loansCommercialowner-occupied real 1,652,208 1,601,803 1,305,682 1,288,677 1,278,505 1,224,986 1,216,713 estate loansCommercial AD&C 994,800 997,423 643,114 684,010 678,906 658,709 688,939 loansCommercial business 2,227,246 2,222,810 813,525 801,019 772,619 772,158 769,660 loansResidential mortgage 1,173,857 1,211,745 1,116,512 1,149,327 1,199,275 1,241,081 1,249,968 loansResidential 175,123 169,050 149,573 146,279 150,692 171,106 176,388 construction loansConsumer loans 521,999 558,434 453,346 466,764 480,530 489,176 505,443 Total loans 10,333,935 10,343,043 6,722,992 6,705,232 6,596,548 6,551,243 6,569,990 Allowance for credit (170,314 ) (163,481 ) (85,800 ) (56,132 ) (54,992 ) (54,024 ) (53,089 )lossesLoans held for sale 88,728 68,765 67,114 53,701 78,821 50,511 24,998 Investment 1,425,733 1,424,652 1,250,560 1,125,136 946,210 955,715 987,299 securitiesInterest-earning 11,965,915 12,447,146 8,222,589 7,947,703 7,742,138 7,713,364 7,648,654 assetsTotal assets 12,678,131 13,290,447 8,929,602 8,629,002 8,437,538 8,398,519 8,327,900 Noninterest-bearing 3,458,804 3,434,038 1,939,937 1,892,052 2,081,435 2,023,614 1,813,708 demand depositsTotal deposits 9,964,969 10,076,834 6,593,874 6,440,319 6,493,899 6,389,749 6,224,523 Customer repurchase 142,287 143,579 125,305 138,605 126,008 150,604 122,626 agreementsTotalinterest-bearing 7,643,381 8,313,546 5,732,349 5,485,055 5,093,265 5,136,860 5,297,108 liabilitiesTotal stockholders' 1,424,749 1,390,093 1,116,334 1,132,974 1,140,041 1,119,445 1,095,848 equityQuarterly Average Balance Sheets:Commercial investor $ 3,582,751 $ 3,448,882 $ 2,202,461 $ 2,092,478 $ 1,982,979 $ 1,960,919 $ 1,964,699 real estate loansCommercialowner-occupied real 1,628,474 1,681,674 1,285,257 1,274,782 1,258,000 1,215,632 1,207,799 estate loansCommercial AD&C 977,607 969,251 659,494 695,817 651,905 686,282 676,205 loansCommercial business 2,207,388 1,899,264 819,133 765,159 786,150 756,594 780,318 loansResidential mortgage 1,189,452 1,208,566 1,139,786 1,169,623 1,215,132 1,244,086 1,230,319 loansResidential 173,280 162,978 145,266 149,690 162,196 174,095 189,720 construction loansConsumer loans 543,242 575,734 465,314 477,572 486,865 505,235 515,644 Total loans 10,302,194 9,946,349 6,716,711 6,625,121 6,543,227 6,542,843 6,564,704 Loans held for sale 54,784 53,312 35,030 50,208 61,870 37,121 17,846 Investment 1,404,238 1,398,586 1,179,084 1,002,692 941,048 964,863 1,010,940 securitiesInterest-earning 12,049,463 11,921,132 7,994,618 7,859,836 7,690,629 7,619,240 7,627,187 assetsTotal assets 12,835,893 12,903,156 8,699,342 8,542,837 8,370,789 8,294,883 8,258,116 Noninterest-bearing 3,281,607 3,007,222 1,797,227 1,927,063 1,909,884 1,796,802 1,682,720 demand depositsTotal deposits 9,862,639 9,614,176 6,433,694 6,459,551 6,405,762 6,247,409 5,952,942 Customer repurchase 142,694 144,050 135,652 126,596 138,736 141,865 129,059 agreementsTotalinterest-bearing 7,969,487 8,326,909 5,612,056 5,326,303 5,202,876 5,269,209 5,403,946 liabilitiesTotal stockholders' 1,401,746 1,390,544 1,130,051 1,136,824 1,123,185 1,099,078 1,073,291 equityFinancial Measures: Average equity to 10.92 % 10.78 % 12.99 % 13.31 % 13.42 % 13.25 % 13.00 %average assetsInvestmentsecurities to 11.91 % 11.45 % 15.21 % 14.16 % 12.22 % 12.39 % 12.91 %earning assetsLoans to earning 86.36 % 83.10 % 81.76 % 84.37 % 85.20 % 84.93 % 85.90 %assetsLoans to assets 81.51 % 77.82 % 75.29 % 77.71 % 78.18 % 78.00 % 78.89 %Loans to deposits 103.70 % 102.64 % 101.96 % 104.11 % 101.58 % 102.53 % 105.55 %Capital Measures: Tier 1 leverage (1) 8.65 % 8.35 % 8.78 % 9.70 % 9.96 % 9.80 % 9.61 %Common equity tier 1capital to 10.45 % 10.23 % 10.23 % 11.06 % 11.37 % 11.43 % 11.19 %risk-weighted assets(1)Tier 1 capital torisk-weighted assets 10.45 % 10.23 % 10.23 % 11.21 % 11.52 % 11.59 % 11.35 %(1)Total regulatorycapital to 14.02 % 13.79 % 14.09 % 14.85 % 12.70 % 12.79 % 12.54 %risk-weighted assets(1)Book value per $ 30.30 $ 29.58 $ 32.68 $ 32.40 $ 32.00 $ 31.43 $ 30.82 common shareOutstanding common 47,025,779 47,001,022 34,164,672 34,970,370 35,625,822 35,614,953 35,557,110 shares(1) Estimated ratio at September 30, 2020

Sandy SpringBancorp, Inc. andSubsidiariesLOAN PORTFOLIO QUALITY DETAIL - UNAUDITED 2020 2019(Dollars in September 30, June 30, March 31, December 31, September June 30, March 31,thousands) 30,Non-Performing Assets:Loans 90 days past due:Commercial real estate:Commercialinvestor real $ - $ 775 $ - $ - $ 1,201 $ 1,248 $ - estateCommercialowner-occupied - 515 - - - - 90 real estateCommercial AD& - - - - - - - CCommercial 93 - - - 17 - - businessResidential real estate:Residential 320 138 8 - - - 221 mortgageResidential - - - - - - - constructionConsumer 1 - - - - - - Total loans 90 414 1,428 8 - 1,218 1,248 311 days past dueNon-accrual loans:Commercial real estate:Commercialinvestor real 26,784 26,482 17,770 8,437 8,454 6,409 6,071 estateCommercialowner-occupied 6,511 6,729 4,074 4,148 3,810 3,766 5,992 real estateCommercial AD& 1,678 2,957 829 829 829 1,990 3,306 CCommercial 17,659 20,246 10,834 8,450 6,393 7,083 8,013 businessResidential real estate:Residential 11,296 11,724 12,271 12,661 12,574 10,625 9,704 mortgageResidential - - - - - - 156 constructionConsumer 7,493 7,800 5,596 4,107 4,561 4,439 4,081 Totalnon-accrual 71,421 75,938 51,374 38,632 36,621 34,312 37,323 loansTotalrestructured 2,854 2,553 2,575 2,636 2,287 2,133 2,479 loans -accruingTotalnon-performing 74,689 79,919 53,957 41,268 40,126 37,693 40,113 loansOther assetsand other real 1,389 1,389 1,416 1,482 1,482 1,486 1,410 estate owned(OREO)Totalnon-performing $ 76,078 $ 81,308 $ 55,373 $ 42,750 $ 41,608 $ 39,179 $ 41,523 assets For the Quarter Ended, September 30, June 30, March 31, December 31, September June 30, March 31, 30,(Dollars in 2020 2020 2020 2019 2019 2019 2019 thousands)Analysis ofNon-accrual Loan Activity:Balance atbeginning of $ 75,938 $ 51,374 $ 38,632 $ 36,621 $ 34,312 $ 37,323 $ 33,583 periodPurchasedcreditdeteriorated - - 13,084 - - - - loansdesignated asnon-accrualNon-accrualbalances - - - - - (195 ) - transferred toOREONon-accrualbalances (144 ) (162 ) (575 ) (454 ) (705 ) (604 ) (227 )charged-offNet payments (4,248 ) (1,881 ) (1,860 ) (2,916 ) (2,903 ) (5,517 ) (1,786 )or drawsLoans placed 893 27,289 2,369 5,381 6,015 3,396 6,202 on non-accrualNon-accrualloans brought (1,018 ) (682 ) (276 ) - (98 ) (91 ) (449 )currentBalance at end $ 71,421 $ 75,938 $ 51,374 $ 38,632 $ 36,621 $ 34,312 $ 37,323 of period Analysis ofAllowance for Credit Losses:Balance atbeginning of $ 163,481 $ 85,800 $ 56,132 $ 54,992 $ 54,024 $ 53,089 $ 53,486 periodTransitionimpact of - - 2,983 - - - - adopting ASC326Initialallowance onpurchased - - 2,762 - - - - creditdeterioratedloansInitialallowance on - 18,628 - - - - - acquired PCDloansProvision/(credit) for 7,003 58,686 24,469 1,655 1,524 1,633 (128 )credit lossesLess loanscharged-off, net ofrecoveries:Commercial real estate:Commercialinvestor real 21 (4 ) - (3 ) (3 ) (3 ) (7 )estateCommercialowner-occupied - - - - - - - real estateCommercial AD& - - - - (224 ) (4 ) - CCommercial 88 (463 ) 108 15 389 735 7 businessResidential real estate:Residential (6 ) 15 333 264 209 (10 ) 89 mortgageResidential (2 ) (1 ) (2 ) (2 ) (2 ) (2 ) (2 )constructionConsumer 69 86 107 241 187 (18 ) 182 Netcharge-offs/ 170 (367 ) 546 515 556 698 269 (recoveries)Balance at end $ 170,314 $ 163,481 $ 85,800 $ 56,132 $ 54,992 $ 54,024 $ 53,089 of period Asset Quality Ratios:Non-performingloans to total 0.72 % 0.77 % 0.80 % 0.62 % 0.61 % 0.58 % 0.61 %loansNon-performingassets to 0.60 % 0.61 % 0.62 % 0.50 % 0.49 % 0.47 % 0.50 %total assetsAllowance forcredit losses 1.65 % 1.58 % 1.28 % 0.84 % 0.83 % 0.82 % 0.81 %to loansAllowance forcredit lossesto 228.03 % 204.56 % 159.02 % 136.02 % 137.05 % 143.33 % 132.35 %non-performingloansAnnualized netcharge-offs/ 0.01 % (0.01 %) 0.03 % 0.03 % 0.03 % 0.04 % 0.02 %(recoveries) toaverage loans

Sandy Spring Bancorp, Inc. and Subsidiaries CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES - UNAUDITED Three Months Ended September 30, 2020 2019 Annualized Annualized Average (1) Average Average (1) Average (Dollars in thousands and Balances Interest Yield/Rate Balances Interest Yield/Rate tax-equivalent)Assets Commercial investor real $ 3,582,751 $ 39,547 4.39 % $ 1,982,979 $ 24,342 4.87 %estate loansCommercial owner-occupied 1,628,474 19,215 4.69 1,258,000 15,749 4.97 real estate loansCommercial AD&C loans 977,607 10,647 4.33 651,905 9,705 5.91 Commercial business loans 2,207,388 20,015 3.61 786,150 10,350 5.22 Total commercial loans 8,396,220 89,424 4.24 4,679,034 60,146 5.10 Residential mortgage 1,189,452 10,899 3.67 1,215,132 11,649 3.83 loansResidential construction 173,280 1,733 3.98 162,196 1,746 4.27 loansConsumer loans 543,242 5,053 3.70 486,865 6,132 5.00 Total residential and 1,905,974 17,685 3.70 1,864,193 19,527 4.18 consumer loansTotal loans (2) 10,302,194 107,109 4.14 6,543,227 79,673 4.84 Loans held for sale 54,784 398 2.91 61,870 572 3.70 Taxable securities 1,148,573 4,190 1.46 744,461 5,504 2.95 Tax-exempt securities (3) 255,665 1,846 2.89 196,587 1,695 3.45 Total investment 1,404,238 6,036 1.72 941,048 7,199 3.06 securities (4)Interest-bearing deposits 287,817 84 0.12 143,865 783 2.16 with banksFederal funds sold 430 - 0.10 619 2 1.42 Total interest-earning 12,049,463 113,627 3.75 7,690,629 88,229 4.56 assets Less: allowance for (162,488 ) (54,147 ) credit lossesCash and due from banks 128,193 64,154 Premises and equipment, 59,182 60,537 netOther assets 761,543 609,616 Total assets $ 12,835,893 $ 8,370,789 Liabilities and Stockholders' EquityInterest-bearing demand $ 1,144,328 365 0.13 % $ 749,720 545 0.29 %depositsRegular savings deposits 391,291 66 0.07 326,913 110 0.13 Money market savings 3,022,710 2,508 0.33 1,781,173 6,721 1.50 depositsTime deposits 2,022,703 6,500 1.28 1,638,072 8,956 2.17 Total interest-bearing 6,581,032 9,439 0.57 4,495,878 16,332 1.44 depositsOther borrowings 709,217 551 0.31 146,939 257 0.69 Advances from FHLB 448,929 2,841 2.52 522,719 3,222 2.45 Subordinated debentures 230,309 2,669 4.64 37,340 481 5.15 Total borrowings 1,388,455 6,061 1.74 706,998 3,960 2.22 Total interest-bearing 7,969,487 15,500 0.77 5,202,876 20,292 1.55 liabilities Noninterest-bearing 3,281,607 1,909,884 demand depositsOther liabilities 183,053 134,844 Stockholders' equity 1,401,746 1,123,185 Total liabilities and $ 12,835,893 $ 8,370,789 stockholders' equity Net interest income and $ 98,127 2.98 % $ 67,937 3.01 %spreadLess: tax-equivalent 643 1,147 adjustmentNet interest income $ 97,484 $ 66,790 Interest income/earning 3.75 % 4.56 %assetsInterest expense/earning 0.51 1.05 assetsNet interest margin 3.24 % 3.51 % (1) Tax-equivalent income has been adjusted using the combined marginal federaland state rate of 25.54% and 26.13% for 2020 and 2019, respectively. Theannualized taxable-equivalent adjustmentsutilized in the above table tocompute yields aggregated to $0.6 million and $1.1 million in 2020 and 2019,respectively.(2) Non-accrual loans are included in the averagebalances.(3) Includes only investments that are exempt from federaltaxes.(4) Available-for-sale investments are presented at amortizedcost.

Sandy Spring Bancorp, Inc. and Subsidiaries CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES - UNAUDITED Nine Months Ended September 30, 2020 2019 Annualized Annualized Average (1) Average Average (1) Average (Dollars in thousands and Balances Interest Yield/Rate Balances Interest Yield/Rate tax-equivalent)Assets Commercial investor real $ 3,079,873 $ 103,238 4.48 % $ 1,969,599 $ 74,428 5.05 %estate loansCommercial owner-occupied 1,532,154 54,215 4.73 1,227,327 44,975 4.90 real estate loansCommercial AD&C loans 869,181 29,862 4.59 671,375 29,853 5.95 Commercial business loans 1,643,992 49,618 4.03 774,375 31,479 5.43 Total commercial loans 7,125,200 236,933 4.44 4,642,676 180,735 5.20 Residential mortgage 1,179,305 32,899 3.72 1,229,790 35,408 3.84 loansResidential construction 160,555 4,985 4.15 175,236 5,582 4.26 loansConsumer loans 528,152 15,550 3.93 502,476 18,797 5.00 Total residential and 1,868,012 53,434 3.82 1,907,502 59,787 4.18 consumer loansTotal loans (2) 8,993,212 290,367 4.31 6,550,178 240,522 4.91 Loans held for sale 47,734 1,094 3.05 39,107 1,145 3.91 Taxable securities 1,095,419 17,557 2.14 752,518 17,169 3.04 Tax-exempt securities (3) 232,165 5,407 3.11 219,510 5,827 3.54 Total investment 1,327,584 22,964 2.31 972,028 22,996 3.15 securities (4)Interest-bearing deposits 291,260 419 0.19 83,981 1,405 2.24 with banksFederal funds sold 369 1 0.36 623 8 1.78 Total interest-earning 10,660,159 314,845 3.94 7,645,917 266,076 4.65 assets Less: allowance for (114,613 ) (53,440 ) credit lossesCash and due from banks 126,607 64,227 Premises and equipment, 59,357 61,039 netOther assets 751,967 590,186 Total assets $ 11,483,477 $ 8,307,929 Liabilities and Stockholders' EquityInterest-bearing demand $ 1,017,873 1,519 0.20 % $ 733,872 1,305 0.24 %depositsRegular savings deposits 363,303 212 0.08 330,377 321 0.13 Money market savings 2,588,870 10,554 0.54 1,710,520 19,617 1.53 depositsTime deposits 1,973,773 22,956 1.55 1,629,716 25,715 2.11 Total interest-bearing 5,943,819 35,241 0.79 4,404,485 46,958 1.43 depositsOther borrowings 553,898 1,731 0.42 158,279 945 0.80 Advances from FHLB 585,063 3,863 0.88 689,224 13,389 2.60 Subordinated debentures 222,470 7,602 4.56 37,376 1,462 5.22 Total borrowings 1,361,431 13,196 1.29 884,879 15,796 2.39 Total interest-bearing 7,305,250 48,437 0.89 5,289,364 62,754 1.59 liabilities Noninterest-bearing 2,697,492 1,797,301 demand depositsOther liabilities 172,944 122,564 Stockholders' equity 1,307,791 1,098,700 Total liabilities and $ 11,483,477 $ 8,307,929 stockholders' equity Net interest income and $ 266,408 3.05 % $ 203,322 3.06 %spreadLess: tax-equivalent 3,076 3,597 adjustmentNet interest income $ 263,332 $ 199,725 Interest income/earning 3.94 % 4.65 %assetsInterest expense/earning 0.61 1.10 assetsNet interest margin 3.33 % 3.55 % (1) Tax-equivalent income has been adjusted using the combined marginal federaland state rate of 25.54% and 26.13% for 2020 and 2019, respectively. Theannualized taxable-equivalent adjustmentsutilized in the above table tocompute yields aggregated to $3.1 million and $3.6 million in 2020 and 2019,respectively.(2) Non-accrual loans are included in the averagebalances.(3) Includes only investments that are exempt from federaltaxes.(4) Available-for-sale investments are presented at amortizedcost.