GlobeNewswire Inc | Oct 21, 2021 07:00AM EDT

October 21, 2021

OLNEY, Md., Oct. 21, 2021 (GLOBE NEWSWIRE) -- Today Sandy Spring Bancorp, Inc., (Nasdaq-SASR), the parent company of Sandy Spring Bank, reported net income of $57.0 million ($1.20 per diluted common share) for the quarter ended September30, 2021. The current quarter compares to $44.6 million ($0.94 per diluted common share) for the third quarter of 2020 and net income of $57.3 million ($1.19 per diluted common share) for the second quarter of 2021. The results for the current quarter reflect the positive impact of the significant decline in interest expense and a credit to the provision for credit losses, which more than offset a decline in non-interest income and an increase in non-interest expense compared to the third quarter of the prior year.

Core earnings, which exclude the impact of the provision for credit losses and provision on unfunded loan commitments, merger and acquisition expense, loss on FHLB redemptions, amortization of intangibles and investment securities gains, each on an after-tax basis, for the current quarter were $52.0 million ($1.10 per diluted common share), compared to $52.1 million ($1.10 per diluted common share) for the quarter ended September30, 2020 and $55.1 million ($1.16 per diluted common share) for the quarter ended June30, 2021.

The provision for credit losses for the current quarter was a credit of $8.2 million as compared to a charge of $7.0 million for the third quarter of 2020 and credit of $4.2 million for the second quarter of 2021. The credits for the provision for credit losses during 2021 reflect the continued declines in the forecasted unemployment rate and, to a lesser degree, improvements in other forecasted macroeconomic indicators. The third quarter's provision also contains the impact of various updated metrics applied in the determination of the allowance for credit losses.

We delivered another successful quarter and I am pleased with the consistent results from across our various lines of business, said Daniel J. Schrider, President and CEO of Sandy Spring Bank. We continue to grow new and existing relationships with wealth, mortgage, retail, and commercial clients, which is evidenced in our significant deposit and commercial loan production this quarter. Our credit quality also remains strong, as well as our proactive management of the margin. We are in a great position, and we look forward to building on the momentum our team has generated."

Third Quarter Highlights:

-- Core earnings for the third quarter of 2021 were $52.0 million and $52.1 million for the prior year quarter as the increase in net interest income during the current quarter was offset by lower non-interest income and increased non-interest expense compared to the third quarter of 2020. -- At September30, 2021, total assets were $13.0 billion, a 3% increase compared to $12.7 billion at September30, 2020. This increase year-over-year was the result of the $889.8 million growth in cash and cash equivalents, primarily as a result of the funds received from the forgiveness of PPP loans, which declined $601.6 million during the same period. Excluding PPP loans, the total loan portfolio remained at $9.3 billion at September 30, 2021 compared to September 30, 2020, due to the combined run-off of $326.9 million of residential mortgage and consumer loans offset by the year-over-year commercial loan growth of $315.9 million or 4%. -- Year-over-year deposits increased 10%, driven by 15% growth in noninterest-bearing deposits and 8% growth in interest-bearing deposits. -- During the past twelve months, time deposits declined $359.4 million and borrowings of $820.6 million were eliminated. The reduction in borrowings included the redemption of $31 million of 5.65% subordinated debt acquired as part of the Revere Bank ("Revere") acquisition and $25 million of 4.75% subordinated debt acquired as part of the WashingtonFirst Bankshares, Inc. ("WashingtonFirst") acquisition. -- For the third quarter of 2021, the net interest margin was 3.52%, compared to 3.24% for the same quarter of 2020, and 3.63% for the second quarter of 2021. Excluding the impact of the amortization of the fair value marks derived from acquisitions, the current quarters net interest margin would have been 3.49%, compared to 3.18% for third quarter of 2020, and 3.60% for the second quarter of 2021. Solely excluding the impact of PPP loans, the current quarters net interest margin would have been 3.35%, compared to 3.30% for the third quarter of 2020, and 3.52% for the second quarter of 2021. -- The provision for credit losses was a credit of $8.2 million for the current quarter compared to the prior quarters credit to the provision of $4.2 million. The credit to the provision for the current quarter was the result of the continued improvement in forecasted economic variables, in addition to the impact of updated metrics applied in the determination of the allowance for credit losses. -- Non-interest income for the current quarter decreased by 17% or $5.0 million compared to the prior year quarter. The decline was the direct result of the 65% decline in income from mortgage banking activities, which exceeded the 21% growth in wealth management income, a 26% increase in service charges on deposit accounts and 16% growth in bank card fees. Other non-interest income grew by 113% compared to the prior year quarter as a result of increases in credit related fees and activity-based contractual vendor incentives. -- Non-interest expense increased $2.2 million or 4% for the third quarter of 2021, compared to the prior year quarter. This increase was driven by increases in compensation costs, professional fees and other non-interest expense, which were partially offset by the lack of merger and acquisition expense during the current quarter and a significant reduction in FDIC insurance. -- Return on average assets (ROA) for the quarter ended September30, 2021 was 1.75% and return on average tangible common equity (ROTCE) was 19.56% compared to 1.79% and 20.44%, respectively, for the second quarter of 2021. On a non-GAAP basis, the current quarter's core ROA was 1.60% and core ROTCE was 17.85% compared to core ROA of 1.73% and core ROTCE of 19.68% for the prior quarter of 2021. -- For the third quarter of 2021, the GAAP efficiency ratio was 48.23% compared to 48.03% for the third quarter of 2020, and 46.89% for the second quarter of 2021. The non-GAAP efficiency ratio for the third quarter of 2021 was 46.67% compared to 45.36% for the second quarter of 2021. -- During the quarter, the Company repurchased 1,261,828 shares of its common stock at an average price of $43.04 per share. Under the current authorization, 1,038,172 common shares remain available to be repurchased.

Balance Sheet and Credit Quality

Total assets grew 3% to $13.0 billion at September30, 2021, as compared to $12.7 billion at September30, 2020. During this period, total loans declined by 6% to $9.7 billion at September30, 2021, compared to $10.3 billion at September30, 2020. Excluding PPP loans, total loans at September30, 2021 remained at $9.3 billion, as compared to the prior year quarter. During the past twelve months, the activity in the loan portfolio reflected the net reduction of loans originated under the PPPprogram of $601.6 million and a $261.9 million decline in the residential mortgage loan portfolio, which was partially offset by year-over-year non-PPP commercial loan growth of $315.9 million or 4%. The year-over-year decline in the mortgage loan portfolio resulted from mortgage loan refinance activity driven by the low interest rate environment and the strategic decision to sell the majority of new mortgage loan production.

At September 30, 2021, the remaining outstanding principal balance of PPP loans was $461.0 million. As of October 4, 2021, 6,629 PPP loans totaling $1.1 billion have been forgiven and an additional $50.0 million have been repaid by borrowers. At the end of the current quarter, loans with an aggregate balance of $13.6 million remain in deferral status. Currently, 99% of all commercial loans that had been granted modifications/deferrals due to pandemic-related financial stress have returned to their original payment plans.

Deposit growth was 10% during the past twelve months, as noninterest-bearing deposits experienced growth of 15% and interest-bearing deposits grew 8%. This growth was driven primarily by the impact of the PPP program and, to a lesser extent, growth in interest-bearing transaction relationships.

Tangible common equity increased to $1.1 billion or 9.10% of tangible assets at September30, 2021, compared to $1.0billion or 8.31% at September30, 2020 as a result of accumulated earnings over the preceding twelve months. Excluding the impact of the PPP program from tangible assets at September30, 2021, the tangible common equity ratio would be 9.44%. At September30, 2021, the Company had a total risk-based capital ratio of 15.26%, a common equity tier 1 risk-based capital ratio of 12.50%, a tier 1 risk-based capital ratio of 12.50%, and a tier 1 leverage ratio of 9.23%.

Non-performing loans include non-accrual loans, accruing loans 90 days or more past due and restructured loans. At September30, 2021, the level of non-performing loans to total loans was 0.80% compared to 0.72% at September30, 2020, and 0.93% at June30, 2021. At September30, 2021, non-performing loans totaled $78.2 million, compared to $74.7million at September30, 2020, and $94.3million at June30, 2021. Loans placed on non-accrual during the current quarter amounted to $5.7million compared to $0.9million for the prior year quarter and $1.5million for the second quarter of 2021. Non-accrual loans at quarter end declined from the prior quarter due primarily to the partial payoffs and eventual charge-offs of a few large borrowings within the hospitality sector with an aggregate balance of $32.9 million. Charged-off amounts of these credits did not exceed their associated individual reserves, and as such, did not result in any additional impact on the current quarter's provision for credit losses. Loans greater than 90 days or more increased from the prior quarter as a result of maturities of existing portfolio loans that were in process of being extended. Loans amounting to $22.2 million were subsequently settled after September 30, 2021.

The Company recorded net charge-offs of $7.8 million for the third quarter of 2021, as compared to net charge-offs of $0.2 million for the third quarter of 2020 and net charge-offs of $2.2 million for the second quarter of 2021. The increase in charge-offs in the current quarter compared to the prior quarter and the prior year quarter was primarily the result of the previously mentioned charge-offs of non-accrual loans.

At September30, 2021, the allowance for credit losses was $107.9million or 1.11% of outstanding loans and 138% of non-performing loans, compared to $124.0million or 1.23% of outstanding loans and 131% of non-performing loans at June30, 2021. Excluding PPP loans, the allowance for credit losses to outstanding loans was 1.17% and 1.34%, at September 30, 2021 and June 30, 2021, respectively. The decline in the allowance during the current quarter compared to the previous quarter was the result of the removal of individual reserves associated with the charge-offs and continued improvement in forecasted economic metrics, in addition to the impact of various updated metrics applied in the determination of the allowance for credit losses.

Income Statement Review

Quarterly Results

The Company recorded net income of $57.0 million for the three months ended September30, 2021, compared to net income of $44.6 million for the prior year quarter. The results for the current quarter reflect the positive impact of the significant decline in interest expense and the credit to the provision for credit losses, which more than offset the decline in non-interest income and an increase in non-interest expense compared to the third quarter of the prior year. Pre-tax, pre-provision, pre-merger income was $67.8 million for the three months ended September30, 2021 compared to $67.2 million for the prior year quarter.

For the third quarter of 2021, net interest income increased $9.1 million or 9% compared to the third quarter of 2020, due to a significant reduction in interest expense during the preceding twelve months. During this period, as general market interest rates declined significantly, interest income declined modestly by $1.9 million, interest expense on deposits, notably money market, time deposits, and borrowings declined to a greater extent, resulting in an $11.0 million decrease in interest expense. Interest expense on interest-bearing deposits declined $5.9 million and interest expense on borrowings declined $5.1 million. For the current quarter, the PPP program contributed $11.4 million to net interest income, of which $9.6 million represented origination fees. The net interest margin for the third quarter of 2021 was 3.52% as compared to 3.24% for the same quarter of the prior year, primarily the result of decreased funding costs during the period. Excluding the net $0.8 million impact of the amortization of the fair value marks derived from acquisitions, the net interest margin for the current quarter would have been 3.49% compared to the adjusted net interest margin of 3.18% for the third quarter of 2020.

The provision for credit losses was a credit of $8.2 million for the third quarter of 2021 compared to a charge of $7.0 million for the third quarter of 2020. The provision for credit losses for the second quarter of 2021 was a credit of $4.2 million. The credit to the provision for the quarter was the result of the continued improvement in forecasted economic variables, in addition to the impact of various updated metrics applied in the determination of the allowance for credit losses. The overall credit to the provision for the third quarter of 2021 was partially mitigated by the impact of adjustments to certain qualitative factors and the change in the portfolio mix as a result of the origination of new credits.

Non-interest income decreased $5.0 million or 17% during the current quarter compared to the same quarter of the prior year, as a result of a 65% decline in income from mortgage banking activities, which exceeded the 21% growth in wealth management income, a 26% increase in service charges on deposit accounts and 16% growth in bank card fees. In addition, other non-interest income grew 113% compared to the prior year primarily as a result of an increase in credit related fees and activity-based contractual vendor incentives. The growth in wealth management income continued to reflect the positive impact of the Rembert Pendleton Jackson ("RPJ") acquisition in 2020 in addition to the performance in the financial markets and the expansion of the wealth management client base. The growth in service charge income reflects the impact of the prior year's temporary suspension of certain service fees as well as lower transaction volume, both a resulting reaction to the Covid-19 pandemic. Bank card fees grew compared to the prior year quarter driven by transaction volume.

Non-interest expense increased $2.2 million or 4% for the third quarter of 2021, compared to the prior year quarter. The increase was driven by increases in compensation costs, professional fees and other non-interest expense, which were partially offset by the lack of merger and acquisition expense during the current quarter and a significant reduction in FDIC insurance expense. Salary and benefit expense increased $2.6 million as a result of staffing increases and an increase of $1.2 million in professional fees and services, primarily due to consulting fees associated with specific strategic initiatives. The decline in the FDIC insurance expense resulted from the reduction in risk factors applied by the regulatory agency in the determination of the Company's premium.

For the third quarter of 2021, the GAAP efficiency ratio was 48.23% compared to 48.03% for the third quarter of 2020, and 46.89% for the second quarter of 2021. The non-GAAP efficiency ratio was 46.67% for the current quarter as compared to 45.27% for the third quarter of 2020, and 45.36% for the second quarter of 2021. The modest increase in the efficiency ratio (reflecting an decrease in efficiency) from the third quarter of the prior year to the current year quarter was the result of the 7% growth in non-GAAP non-interest expense outpacing the 3% growth in non-GAAP revenue. ROA for the quarter ended September30, 2021 was 1.75% and ROTCE was 19.56% compared to 1.79% and 20.44%, respectively, for the second quarter of 2021. On a non-GAAP basis, the current quarter's core ROA was 1.60% and core ROTCE was 17.85% compared to core ROA of 1.73% and core ROTCE of 19.68% for the prior quarter of 2021.

Year to Date Results

The Company recorded net income of $189.7 million for the nine months ended September30, 2021 compared to net income of $40.3 million for the same period in the prior year. Pre-tax, pre-provision, pre-merger income was $204.5 million for the nine months ended September30, 2021 compared to $164.9 million for the prior year. The current year benefited from increased net interest income of $55.9 million, a $47.1 million credit to the provision for credit losses, and a $9.0 million increase in non-interest income driven primarily by wealth management income and other non-interest income. The prior year's results reflected the combined impact of merger and acquisition expense associated with the Revere acquisition, the impact of the Covid-19 pandemic on economic forecast used in the determination of the allowance for credit losses and the additional provision for credit losses associated with the acquisition of Revere during that period.

Net interest income for the nine months ended September30, 2021 increased 21% or $55.9 million compared to the prior year as net interest income was driven by the increase in interest income from the commercial loan portfolio and the overall decrease in interest expense during the current year. These positive impacts were partially offset by the decrease in interest income on the investment securities and the mortgage and consumer loans portfolios. Contributing to the growth in net interest income, the PPP program generated $35.6 million, net of its associated funding costs, year-over-year. The net interest margin improved to 3.57% for the nine months ended September30, 2021, compared to 3.33% for the prior year. Excluding the net $4.6 million impact of the amortization of the fair value marks derived from acquisitions, the net interest margin for the current year would have been 3.52%. The net interest margin for 2020, excluding the amortization of fair value marks, would have been 3.21%.

The provision for credit losses for the nine months ended September30, 2021 amounted to a credit of $47.1 million as compared to a charge of $90.2 million for the same period in 2020. For the nine months ended September30, 2021, the credit for the provision for credit losses, compared to the prior year's charge to the provision, reflects the impact of the continued improvement in forecasted economic metrics, notably the rate of unemployment, anticipated business bankruptcies and the housing price index. These decreases were partially offset by qualitative factors applied in the determination of the allowance. The charge to the provision for credit losses for the same period in 2020 predominantly reflected the combined results of the impact of the deteriorated economic forecasts during the first half of 2020 and the initial allowance on acquired Revere non-purchased credit deteriorated loans.

Non-interest income increased 13% to $79.5 million for the nine months ended September30, 2021, compared to $70.5 million for 2020. During the current year, wealth management income increased $4.9 million year over year as a result of the acquisition of RPJ in the first quarter of 2020, in addition to the $699 million growth in assets under management and the increase in the client base during the past twelve months. Service charge income also increased 15% as customer activity increased. As a result of increased transaction volume, bank card fees grew 24% compared to the prior year period. Other non-interest income also grew significantly compared to the prior year as a result of the combination of the full payoff of a purchased credit deteriorated loan, credit related fees and activity-based contractual vendor incentives. Income from mortgage banking activities decreased during the year compared to the prior year.

Non-interest expense was $194.3 million for the nine months ended September30, 2021, compared to $194.1 million for 2020. The current year included $9.1 million in prepayment penalties on FHLB borrowings compared to $5.9 million in prepayment penalties in the prior year. The prior year included $25.2 million in merger and acquisition expense. Excluding the impact of these items results in a year-over-year growth rate in non-interest expense of 14%. This growth rate was driven by operational and compensation costs associated with the 2020 acquisitions, staffing increases and professional fees and services associated with certain strategic initiatives, increased incentive expense associated with mortgage lending and other volume based activities, increased intangible asset amortization, marketing and outside data services cost.

The effective tax rate for the nine months ended September30, 2021 was 24.60%, compared to a tax rate of 18.66% for the same period in 2020. The current year's effective tax rate reflects a more normalized rate while the prior year's rate reflected the favorable result of the changes to tax laws in 2020 that expanded the time permitted to utilize previous net operating losses. The Company applied this change to the 2018 acquisition of WashingtonFirst to realize a tax benefit of $1.8 million for 2020, resulting in a greater proportional benefit from the operating income in the first nine months of 2020.

For the nine months ended September 30, 2021, the GAAP efficiency ratio was 48.73% compared to 58.15% for the same period in 2020. The non-GAAP efficiency ratio for the first nine months of the current year was 44.88% compared to 47.10% for the same period in the prior year. The improvement in the current years non-GAAP efficiency ratio compared to the prior year was the result of the 19% growth in non-GAAP revenue, which outpaced the 14% 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 goodwill and other intangible assets. -- The non-GAAP efficiency ratio excludes amortization of intangible assets, loss on FHLB redemption, merger and acquisition expense and investment securities gains 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 the provision/(credit) for credit losses, provision/(credit) for credit losses on unfunded loan commitments, merger and acquisition expense, amortization of intangible assets, loss on FHLB redemption, and investment securities gains, on a net of tax basis.

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 1-844-200-6205. Please use the following access code: 896716. 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 November 4, 2021. A replay of the teleconference will be available through the same time period by calling 1-866-813-9403 under conference call number 472010.

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, Northern Virginia, and Washington, D.C. Through its subsidiaries, Rembert Pendleton Jackson, Sandy Spring Insurance Corporation and West Financial Services, Inc., Sandy Spring Bank also offers a comprehensive menu of insurance and wealth management services.

For additional information or questions, please contact:Daniel J. Schrider, President & Chief Executive Officer, or Philip J. Mantua, E.V.P. & Chief Financial OfficerSandy Spring Bancorp 17801 Georgia AvenueOlney, Maryland 208321-800-399-5919Email: DSchrider@sandyspringbank.comPMantua@sandyspringbank.comWebsite: www.sandyspringbank.com

Media Contact:Jen Schell 301-570-8331jschell@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 effect of the pandemic on our borrowers and their ability to make payments on their obligations, the effectiveness of vaccination programs, and the effect of remedial actions and stimulus measures adopted by federal, state and local governments; 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, 2020, 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 Spring Bancorp, Inc. and Subsidiaries FINANCIAL HIGHLIGHTS - UNAUDITED

Three Months Ended Nine Months Ended September 30, September 30,(Dollars in % %thousands, 2021 2020 Change 2021 2020 Changeexcept per sharedata)Results of operations:Net interest $ 106,604 $ 97,484 9 % $ 319,250 $ 263,332 21 % incomeProvision/ ) )(credit) for (8,229 ) 7,003 (218 % (47,141 ) 90,158 (152 % credit lossesNon-interest 24,394 29,390 (17 ) 79,519 70,482 13 incomeNon-interest 63,181 60,937 4 194,329 194,121 ? expenseIncome beforeincome tax 76,046 58,934 29 251,581 49,535 408 expenseNet income 56,976 44,642 28 189,703 40,291 371 Net incomeattributable to $ 56,622 $ 44,268 28 $ 188,484 $ 39,974 372 commonshareholdersPre-taxpre-provision $ 67,817 $ 67,200 1 $ 204,485 $ 164,864 24 pre-mergerincome^ (1) Return on 1.75 % 1.38 % 1.98 % 0.47 % average assetsReturn onaverage common 14.54 % 12.67 % 16.70 % 4.12 % equityReturn onaverage tangible 19.56 % 17.84 % 22.68 % 5.87 % common equityNet interest 3.52 % 3.24 % 3.57 % 3.33 % marginEfficiency ratio- GAAP basis^ 48.23 % 48.03 % 48.73 % 58.15 % (2)Efficiency ratio- Non-GAAP basis 46.67 % 45.27 % 44.88 % 47.10 % ^ (2) Per share data: Basic net income $ 1.21 $ 0.94 29 % $ 4.00 $ 0.93 330 % per common shareDiluted netincome per $ 1.20 $ 0.94 28 $ 3.98 $ 0.93 328 common shareWeighted averagediluted common 47,086,824 47,175,071 ? 47,315,725 43,070,672 10 sharesDividendsdeclared per $ 0.32 $ 0.30 7 $ 0.96 $ 0.90 7 shareBook value per $ 33.52 $ 30.30 11 $ 33.52 $ 30.30 11 common shareTangible bookvalue per common $ 24.90 $ 21.69 15 $ 24.90 $ 21.69 15 share^ (^1)Outstanding 46,119,074 47,025,779 (2 ) 46,119,074 47,025,779 (2 ) common shares Financialcondition at period-end:Investment $ 1,470,652 $ 1,425,733 3 % $ 1,470,652 $ 1,425,733 3 % securitiesLoans 9,721,348 10,333,935 (6 ) 9,721,348 10,333,935 (6 ) Interest-earning 12,245,374 11,965,915 2 12,245,374 11,965,915 2 assetsAssets 13,017,464 12,678,131 3 13,017,464 12,678,131 3 Deposits 10,987,400 9,964,969 10 10,987,400 9,964,969 10 Interest-bearing 7,320,132 7,643,381 (4 ) 7,320,132 7,643,381 (4 ) liabilitiesStockholders' 1,546,060 1,424,749 9 1,546,060 1,424,749 9 equity Capital ratios: Tier 1 leverage^ 9.23 % 8.65 % 9.23 % 8.65 % (3)Common equitytier 1 capital 12.50 % 10.45 % 12.50 % 10.45 % to risk-weightedassets^ (3)Tier 1 capitalto risk-weighted 12.50 % 10.45 % 12.50 % 10.45 % assets^ (3)Total regulatorycapital to 15.26 % 14.02 % 15.26 % 14.02 % risk-weightedassets^ (3)Tangible commonequity to 9.10 % 8.31 % 9.10 % 8.31 % tangible assets^(4)Average equityto average 12.07 % 10.92 % 11.84 % 11.39 % assets Credit quality ratios:Allowance forcredit losses to 1.11 % 1.65 % 1.11 % 1.65 % loansNon-performingloans to total 0.80 % 0.72 % 0.80 % 0.72 % loansNon-performingassets to total 0.61 % 0.60 % 0.61 % 0.60 % assetsAllowance forcredit losses to 138.06 % 228.03 % 138.06 % 228.03 % non-performingloansAnnualized netcharge-offs to 0.31 % 0.01 % 0.14 % 0.01 % average loans^(5)

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 Consolidated Statements of Income. The traditional efficiency ratio - Non-GAAP basis excludes intangible asset amortization, loss on FHLB redemption, and merger and acquisition expense from non-interest expense; securities gains 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 September30, 2021.(4) The tangible common equity to tangible assets ratio is a non-GAAP ratio that divides assets excluding intangible assets into stockholders' equity after deducting 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

Three Months Ended Nine Months Ended September 30, September 30,(Dollars in 2021 2020 2021 2020thousands)Pre-taxpre-provision pre-mergerincome:Net income $ 56,976 $ 44,642 $ 189,703 $ 40,291 Plus/ (less)non-GAAP adjustments:Merger andacquisition ? 1,263 45 25,171 expenseIncome tax 19,070 14,292 61,878 9,244 expenseProvision/(credit) for (8,229 ) 7,003 (47,141 ) 90,158 credit lossesPre-taxpre-provision $ 67,817 $ 67,200 $ 204,485 $ 164,864 pre-mergerincome Efficiency ratio (GAAP):Non-interest $ 63,181 $ 60,937 $ 194,329 $ 194,121 expense Net interestincome plus $ 130,998 $ 126,874 $ 398,769 $ 333,814 non-interestincome Efficiency 48.23 % 48.03 % 48.73 % 58.15 %ratio (GAAP) Efficiencyratio (Non-GAAP):Non-interest $ 63,181 $ 60,937 $ 194,329 $ 194,121 expenseLess non-GAAP adjustments:Amortizationof intangible 1,635 1,968 4,991 4,566 assetsLoss on FHLB ? ? 9,117 5,928 redemptionMerger andacquisition ? 1,263 45 25,171 expenseNon-interestexpense - as $ 61,546 $ 57,706 $ 180,176 $ 158,456 adjusted Net interestincome plus $ 130,998 $ 126,874 $ 398,769 $ 333,814 non-interestincomePlus non-GAAP adjustment:Tax-equivalent 931 643 2,841 3,076 incomeLess non-GAAP adjustment:Investmentsecurities 49 51 178 432 gainsNet interestincome plusnon-interest $ 131,880 $ 127,466 $ 401,432 $ 336,458 income - asadjusted Efficiencyratio 46.67 % 45.27 % 44.88 % 47.10 %(Non-GAAP) Tangiblecommon equity ratio:Totalstockholders' $ 1,546,060 $ 1,424,749 $ 1,546,060 $ 1,424,749 equityGoodwill (370,223 ) (370,549 ) (370,223 ) (370,549 )Otherintangible (27,531 ) (34,175 ) (27,531 ) (34,175 )assets, netTangible $ 1,148,306 $ 1,020,025 $ 1,148,306 $ 1,020,025 common equity Total assets $ 13,017,464 $ 12,678,131 $ 13,017,464 $ 12,678,131 Goodwill (370,223 ) (370,549 ) (370,223 ) (370,549 )Otherintangible (27,531 ) (34,175 ) (27,531 ) (34,175 )assets, netTangible $ 12,619,710 $ 12,273,407 $ 12,619,710 $ 12,273,407 assets Tangiblecommon equity 9.10 % 8.31 % 9.10 % 8.31 %ratio Outstanding 46,119,074 47,025,779 46,119,074 47,025,779 common sharesTangible bookvalue per $ 24.90 $ 21.69 $ 24.90 $ 21.69 common share

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

Three Months Ended Nine Months Ended September 30, September 30,(Dollars in 2021 2020 2021 2020thousands)Core earnings (non-GAAP):Net income $ 56,976 $ 44,642 $ 189,703 $ 40,291 Plus/ (less)non-GAAP adjustments(net of tax):Provision/(credit) for (6,065 ) 5,140 (35,054 ) 67,132 credit lossesProvision/(credit) forcredit losses (64 ) ? (950 ) ? on unfundedloancommitmentsMerger andacquisition ? 919 33 18,742 expenseAmortizationof intangible 1,211 1,463 3,711 3,400 assetsLoss on FHLB ? ? 6,779 4,414 redemptionInvestmentsecurities (36 ) (38 ) (132 ) (322 )gainsCore earnings $ 52,022 $ 52,126 $ 164,090 $ 133,657 (Non-GAAP) Core earningsper common share(non-GAAP):Weightedaveragecommon shares 47,086,824 47,175,071 47,315,725 43,070,672 outstanding -diluted(GAAP) Earnings perdiluted $ 1.20 $ 0.94 $ 3.98 $ 0.93 common share(GAAP)Core earningsper diluted $ 1.10 $ 1.10 $ 3.47 $ 3.10 common share(non-GAAP) Core returnon average assets(non-GAAP):Average $ 12,886,460 $ 12,835,893 $ 12,827,195 $ 11,483,477 assets (GAAP) Return onaverage 1.75 % 1.38 % 1.98 % 0.47 %assets (GAAP)Core returnon average 1.60 % 1.62 % 1.71 % 1.55 %assets(non-GAAP) Core returnon averagetangible common equity(non-GAAP):Average totalstockholders' $ 1,554,765 $ 1,401,746 $ 1,518,881 $ 1,307,791 equity (GAAP)Average (370,223 ) (370,548 ) (370,223 ) (363,906 )goodwillAverage otherintangible (28,600 ) (35,470 ) (30,228 ) (26,572 )assets, netAveragetangible $ 1,155,942 $ 995,728 $ 1,118,430 $ 917,313 common equity(non-GAAP) Return onaveragetangible 19.56 % 17.84 % 22.68 % 5.87 %common equity(GAAP)Core returnon averagetangible 17.85 % 20.83 % 19.62 % 19.46 %common equity(non-GAAP)

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

(Dollars in thousands) September 30, December 31, September 30, 2021 2020 2020Assets Cash and due from banks $ 105,937 $ 93,651 $ 107,364 Federal funds sold 352 291 390 Interest-bearing deposits 1,008,344 203,061 117,129 with banksCash and cash equivalents 1,114,633 297,003 224,883 Residential mortgage loansheld for sale (at fair 44,678 78,294 88,728 value)Investmentsavailable-for-sale (at fair 1,429,555 1,348,021 1,357,205 value)Other equity securities 41,097 65,760 68,528 Total loans 9,721,348 10,400,509 10,333,935 Less: allowance for credit (107,920 ) (165,367 ) (170,314 )lossesNet loans 9,613,428 10,235,142 10,163,621 Premises and equipment, net 58,362 57,720 58,738 Other real estate owned 1,105 1,455 1,389 Accrued interest receivable 36,219 46,431 48,176 Goodwill 370,223 370,223 370,549 Other intangible assets, net 27,531 32,521 34,175 Other assets 280,633 265,859 262,139 Total assets $ 13,017,464 $ 12,798,429 $ 12,678,131 Liabilities Noninterest-bearing deposits $ 3,987,411 $ 3,325,547 $ 3,458,804 Interest-bearing deposits 6,999,989 6,707,522 6,506,165 Total deposits 10,987,400 10,033,069 9,964,969 Securities sold under retailrepurchase agreements and 147,504 543,157 462,706 federal funds purchasedAdvances from FHLB ? 379,075 444,210 Subordinated debt 172,639 227,088 230,300 Total borrowings 320,143 1,149,320 1,137,216 Accrued interest payable and 163,861 146,085 151,197 other liabilitiesTotal liabilities 11,471,404 11,328,474 11,253,382 Stockholders' equity Common stock -- par value$1.00; shares authorized100,000,000; shares issuedand outstanding 46,119,074,47,056,777 and 47,025,779 at 46,119 47,057 47,026 September30, 2021,December31, 2020 andSeptember30, 2020,respectivelyAdditional paid in capital 799,766 846,922 845,399 Retained earnings 701,301 557,271 514,831 Accumulated other (1,126 ) 18,705 17,493 comprehensive income/ (loss)Total stockholders' equity 1,546,060 1,469,955 1,424,749 Total liabilities and $ 13,017,464 $ 12,798,429 $ 12,678,131 stockholders' equity

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

Three Months Ended Nine Months Ended September 30, September 30,(Dollars in thousands, 2021 2020 2021 2020except per share data)Interest income: Interest and fees on $ 104,384 $ 106,560 $ 319,563 $ 288,721 loansInterest on loans held 379 398 1,465 1,094 for saleInterest on deposits 302 84 395 419 with banksInterest and dividendson investment securities:Taxable 3,958 4,488 12,230 17,270 Tax-advantaged 2,106 1,454 6,560 4,264 Interest on federal ? ? ? 1 funds soldTotal interest income 111,129 112,984 340,213 311,769 Interest Expense: Interest on deposits 3,521 9,439 12,202 35,241 Interest on retailrepurchase agreements 43 551 139 1,731 and federal fundspurchasedInterest on advances ? 2,841 2,649 3,863 from FHLBInterest on 961 2,669 5,973 7,602 subordinated debtTotal interest expense 4,525 15,500 20,963 48,437 Net interest income 106,604 97,484 319,250 263,332 Provision/ (credit) for (8,229 ) 7,003 (47,141 ) 90,158 credit lossesNet interest incomeafter provision/ 114,833 90,481 366,391 173,174 (credit) for creditlossesNon-interest income: Investment securities 49 51 178 432 gainsService charges on 2,108 1,673 5,936 5,149 deposit accountsMortgage banking 4,942 14,108 20,887 25,567 activitiesWealth management 9,392 7,785 27,243 22,355 incomeInsurance agency 2,285 2,122 5,685 5,439 commissionsIncome from bank owned 818 708 2,203 2,162 life insuranceBank card fees 1,775 1,525 5,078 4,102 Other income 3,025 1,418 12,309 5,276 Total non-interest 24,394 29,390 79,519 70,482 incomeNon-interest expense: Salaries and employee 38,653 36,041 114,295 98,391 benefitsOccupancy expense of 5,728 5,575 16,712 16,147 premisesEquipment expenses 3,214 3,133 9,456 9,103 Marketing 1,376 1,305 3,640 3,223 Outside data services 2,317 2,614 6,860 6,365 FDIC insurance 361 1,340 3,303 3,200 Amortization of 1,635 1,968 4,991 4,566 intangible assetsMerger and acquisition ? 1,263 45 25,171 expenseProfessional fees and 3,031 1,800 7,927 5,466 servicesOther expenses 6,866 5,898 27,100 22,489 Total non-interest 63,181 60,937 194,329 194,121 expenseIncome before income 76,046 58,934 251,581 49,535 tax expenseIncome tax expense 19,070 14,292 61,878 9,244 Net income $ 56,976 $ 44,642 $ 189,703 $ 40,291 Net income per share amounts:Basic net income per $ 1.21 $ 0.94 $ 4.00 $ 0.93 common shareDiluted net income per $ 1.20 $ 0.94 $ 3.98 $ 0.93 common shareDividends declared per $ 0.32 $ 0.30 $ 0.96 $ 0.90 share

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

2021 2020(Dollars in thousands, Q3 Q2 Q1 Q4 Q3 Q2 Q1except per share data)Profitability for the quarter:Tax-equivalent interest $ 112,060 $ 115,753 $ 115,241 $ 112,843 $ 113,627 $ 116,252 $ 84,966 incomeInterest expense 4,525 6,777 9,661 11,964 15,500 13,413 19,524 Tax-equivalent net 107,535 108,976 105,580 100,879 98,127 102,839 65,442 interest incomeTax-equivalent adjustment 931 930 980 1,052 643 1,325 1,108 Provision/ (credit) for (8,229 ) (4,204 ) (34,708 ) (4,489 ) 7,003 58,686 24,469 credit lossesNon-interest income 24,394 26,259 28,866 32,234 29,390 22,924 18,168 Non-interest expense 63,181 62,975 68,173 61,661 60,937 85,438 47,746 Income/ (loss) beforeincome tax expense/ 76,046 75,534 100,001 74,889 58,934 (19,686 ) 10,287 (benefit)Income tax expense/ 19,070 18,271 24,537 18,227 14,292 (5,348 ) 300 (benefit)Net income/ (loss) $ 56,976 $ 57,263 $ 75,464 $ 56,662 $ 44,642 $ (14,338 ) $ 9,987 Financial performance: Pre-tax pre-provision $ 67,817 $ 71,330 $ 65,338 $ 70,403 $ 67,200 $ 61,454 $ 36,210 pre-merger incomeReturn on average assets 1.75 % 1.79 % 2.39 % 1.78 % 1.38 % (0.45 ) 0.46 % %Return on average common 14.54 % 15.07 % 20.72 % 15.72 % 12.67 % (4.15 ) 3.55 %equity %Return on average tangible 19.56 % 20.44 % 28.47 % 21.89 % 17.84 % (5.80 ) 5.34 %common equity %Net interest margin 3.52 % 3.63 % 3.56 % 3.38 % 3.24 % 3.47 % 3.29 %Efficiency ratio - GAAP 48.23 % 46.89 % 51.08 % 46.69 % 48.03 % 68.66 % 57.87 %basis^ (1)Efficiency ratio - 46.67 % 45.36 % 42.65 % 45.09 % 45.27 % 43.85 % 54.76 %Non-GAAP basis^ (1)Per share data: Net income/ (loss)attributable to common $ 56,622 $ 56,782 $ 74,824 $ 56,194 $ 44,268 $ (14,458 ) $ 9,919 shareholdersBasic net income/ (loss) $ 1.21 $ 1.20 $ 1.59 $ 1.19 $ 0.94 $ (0.31 ) $ 0.29 per common shareDiluted net income/ (loss) $ 1.20 $ 1.19 $ 1.58 $ 1.19 $ 0.94 $ (0.31 ) $ 0.28 per common shareWeighted average diluted 47,086,824 47,523,198 47,415,060 47,284,808 47,175,071 46,988,351 34,743,623 common sharesDividends declared per $ 0.32 $ 0.32 $ 0.32 $ 0.30 $ 0.30 $ 0.30 $ 0.30 shareNon-interest income: Securities gains $ 49 $ 71 $ 58 $ 35 $ 51 $ 212 $ 169 Service charges on deposit 2,108 1,976 1,852 1,917 1,673 1,223 2,253 accountsMortgage banking 4,942 5,776 10,169 14,491 14,108 8,426 3,033 activitiesWealth management income 9,392 9,121 8,730 8,215 7,785 7,604 6,966 Insurance agency 2,285 1,247 2,153 1,356 2,122 1,188 2,129 commissionsIncome from bank owned 818 705 680 705 708 809 645 life insuranceBank card fees 1,775 1,785 1,518 1,570 1,525 1,257 1,320 Other income 3,025 5,578 3,706 3,945 1,418 2,205 1,653 Total non-interest income $ 24,394 $ 26,259 $ 28,866 $ 32,234 $ 29,390 $ 22,924 $ 18,168 Non-interest expense: Salaries and employee $ 38,653 $ 38,990 $ 36,652 $ 36,080 $ 36,041 $ 34,297 $ 28,053 benefitsOccupancy expense of 5,728 5,497 5,487 5,236 5,575 5,991 4,581 premisesEquipment expenses 3,214 3,020 3,222 3,121 3,133 3,219 2,751 Marketing 1,376 1,052 1,212 1,058 1,305 729 1,189 Outside data services 2,317 2,260 2,283 2,394 2,614 2,169 1,582 FDIC insurance 361 1,450 1,492 1,527 1,340 1,378 482 Amortization of intangible 1,635 1,659 1,697 1,655 1,968 1,998 600 assetsMerger and acquisition ? ? 45 3 1,263 22,454 1,454 expenseProfessional fees and 3,031 3,165 1,731 2,473 1,800 1,840 1,826 servicesOther expenses 6,866 5,882 14,352 8,114 5,898 11,363 5,228 Total non-interest expense $ 63,181 $ 62,975 $ 68,173 $ 61,661 $ 60,937 $ 85,438 $ 47,746

(1) 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, loss on FHLB redemption, and merger and acquisition expense from non-interest expense; investment securities gains from non-interest income; and adds the tax- equivalent adjustment to net interest income. See the Reconciliation Table included with these Financial Highlights.

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

2021 2020(Dollars inthousands, except Q3 Q2 Q1 Q4 Q3 Q2 Q1per share data)Balance sheets at quarter end: Commercial investor $ 3,743,698 $ 3,712,374 $ 3,652,418 $ 3,634,720 $ 3,588,702 $ 3,581,778 $ 2,241,240 real estate loansCommercialowner-occupied real 1,661,092 1,687,843 1,644,848 1,642,216 1,652,208 1,601,803 1,305,682 estate loansCommercial AD&C 1,177,949 1,126,960 1,051,013 1,050,973 994,800 997,423 643,114 loansCommercial business 1,594,528 1,974,366 2,411,109 2,267,548 2,227,246 2,222,810 813,525 loansResidential mortgage 911,997 960,527 1,022,546 1,105,179 1,173,857 1,211,745 1,116,512 loansResidential 181,319 172,869 171,028 182,619 175,123 169,050 149,573 construction loansConsumer loans 450,765 457,576 493,904 517,254 521,999 558,434 453,346 Total loans 9,721,348 10,092,515 10,446,866 10,400,509 10,333,935 10,343,043 6,722,992 Allowance for credit (107,920 ) (123,961 ) (130,361 ) (165,367 ) (170,314 ) (163,481 ) (85,800 )lossesLoans held for sale 44,678 71,082 84,930 78,294 88,728 68,765 67,114 Investment 1,470,652 1,482,123 1,472,727 1,413,781 1,425,733 1,424,652 1,250,560 securitiesInterest-earning 12,245,374 12,167,067 12,132,405 12,095,936 11,965,915 12,447,146 8,222,589 assetsTotal assets 13,017,464 12,925,577 12,873,366 12,798,429 12,678,131 13,290,447 8,929,602 Noninterest-bearing 3,987,411 4,000,636 3,770,852 3,325,547 3,458,804 3,434,038 1,939,937 demand depositsTotal deposits 10,987,400 10,866,466 10,677,752 10,033,069 9,964,969 10,076,834 6,593,874 Customer repurchase 147,504 140,708 129,318 153,157 142,287 143,579 125,305 agreementsTotalinterest-bearing 7,320,132 7,233,536 7,423,262 7,856,842 7,643,381 8,313,546 5,732,349 liabilitiesTotal stockholders' 1,546,060 1,562,280 1,511,694 1,469,955 1,424,749 1,390,093 1,116,334 equityQuarterly average balance sheets: Commercial investor $ 3,678,886 $ 3,675,119 $ 3,634,174 $ 3,599,648 $ 3,582,751 $ 3,448,882 $ 2,202,461 real estate loansCommercialowner-occupied real 1,671,442 1,663,543 1,638,885 1,643,817 1,628,474 1,681,674 1,285,257 estate loansCommercial AD&C 1,161,183 1,089,287 1,049,597 1,017,304 977,607 969,251 659,494 loansCommercial business 1,820,598 2,225,885 2,291,097 2,189,828 2,207,388 1,899,264 819,133 loansResidential mortgage 934,365 994,899 1,066,714 1,136,989 1,189,452 1,208,566 1,139,786 loansResidential 170,511 176,135 179,925 180,494 173,280 162,978 145,266 construction loansConsumer loans 452,289 468,686 496,578 515,202 543,242 575,734 465,314 Total loans 9,889,274 10,293,554 10,356,970 10,283,282 10,302,194 9,946,349 6,716,711 Loans held for sale 50,075 66,958 82,263 68,255 54,784 53,312 35,030 Investment 1,403,496 1,482,905 1,407,455 1,418,683 1,404,238 1,398,586 1,179,084 securitiesInterest-earning 12,121,048 12,037,701 12,029,424 11,882,542 12,049,463 11,921,132 7,994,618 assetsTotal assets 12,886,460 12,798,355 12,801,539 12,645,329 12,835,893 12,903,156 8,699,342 Noninterest-bearing 3,869,293 3,763,135 3,394,110 3,424,729 3,281,607 3,007,222 1,797,227 demand depositsTotal deposits 10,832,115 10,663,346 10,343,190 9,999,144 9,862,639 9,614,176 6,433,694 Customer repurchase 145,483 136,286 148,195 146,685 142,694 144,050 135,652 agreementsTotalinterest-bearing 7,315,021 7,356,656 7,742,987 7,609,829 7,969,487 8,326,909 5,612,056 liabilitiesTotal stockholders' 1,554,765 1,523,875 1,477,150 1,433,900 1,401,746 1,390,544 1,130,051 equityFinancial measures: Average equity to 12.07 % 11.91 % 11.54 % 11.34 % 10.92 % 10.78 % 12.99 %average assetsInvestmentsecurities to 12.01 % 12.18 % 12.14 % 11.69 % 11.91 % 11.45 % 15.21 %earning assetsLoans to earning 79.39 % 82.95 % 86.11 % 85.98 % 86.36 % 83.10 % 81.76 %assetsLoans to assets 74.68 % 78.08 % 81.15 % 81.26 % 81.51 % 77.82 % 75.29 %Loans to deposits 88.48 % 92.88 % 97.84 % 103.66 % 103.70 % 102.64 % 101.96 %Capital measures: Tier 1 leverage^ (1) 9.23 % 9.49 % 9.14 % 8.92 % 8.65 % 8.35 % 8.78 %Common equity tier 1capital to 12.50 % 12.47 % 12.09 % 10.58 % 10.45 % 10.23 % 10.23 %risk-weighted assets^(1)Tier 1 capital torisk-weighted assets 12.50 % 12.47 % 12.09 % 10.58 % 10.45 % 10.23 % 10.23 %^(1)Total regulatorycapital to 15.26 % 15.82 % 15.49 % 13.93 % 14.02 % 13.79 % 14.09 %risk-weighted assets^ (1)Book value per $ 33.52 $ 33.02 $ 32.04 $ 31.24 $ 30.30 $ 29.58 $ 32.68 common shareOutstanding common 46,119,074 47,312,982 47,187,389 47,056,777 47,025,779 47,001,022 34,164,672 shares

(1) Estimated ratio at September30, 2021.

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

2021 2020(Dollars in September June 30, March 31, December September June 30, March 31,thousands) 30, 31, 30,Non-performing assets:Loans 90 days past due:Commercial real estate:Commercialinvestor real $ 14,830 $ ? $ ? $ 133 $ ? $ 775 $ ? estateCommercialowner-occupied ? ? ? ? ? 515 ? real estateCommercial AD& 7,344 ? ? ? ? ? ? CCommercial ? ? 31 161 93 ? ? businessResidential real estate:Residential 679 680 398 480 320 138 8 mortgageResidential ? ? ? ? ? ? ? constructionConsumer ? ? ? ? 1 ? ? Total loans 90 22,853 680 429 774 414 1,428 8 days past dueNon-accrual loans:Commercial real estate:Commercialinvestor real 15,386 42,072 42,776 45,227 26,784 26,482 17,770 estateCommercialowner-occupied 9,854 8,183 8,316 11,561 6,511 6,729 4,074 real estateCommercial AD& 1,022 14,489 14,975 15,044 1,678 2,957 829 CCommercial 9,454 9,435 13,147 22,933 17,659 20,246 10,834 businessResidential real estate:Residential 9,511 9,440 9,593 10,212 11,296 11,724 12,271 mortgageResidential 62 62 ? ? ? ? ? constructionConsumer 7,826 7,718 7,193 7,384 7,493 7,800 5,596 Totalnon-accrual 53,115 91,399 96,000 112,361 71,421 75,938 51,374 loansTotalrestructured 2,199 2,228 2,271 2,317 2,854 2,553 2,575 loans -accruingTotalnon-performing 78,167 94,307 98,700 115,452 74,689 79,919 53,957 loansOther assetsand other real 1,105 1,234 1,354 1,455 1,389 1,389 1,416 estate owned(OREO)Totalnon-performing $ 79,272 $ 95,541 $ 100,054 $ 116,907 $ 76,078 $ 81,308 $ 55,373 assets

For the Quarter Ended,(Dollars in September June 30, March 31, December September June 30, March 31,thousands) 30, 2021 2021 31, 30, 2020 2020 2021 2020 2020Analysis ofnon-accrual loan activity:Balance atbeginning of $ 91,399 $ 96,000 $ 112,361 $ 71,421 $ 75,938 $ 51,374 $ 38,632 periodPurchased creditdeteriorated loans ? ? ? ? ? ? 13,084 designated asnon-accrualNon-accrualbalances ? (257 ) ? (70 ) ? ? ? transferred toOREONon-accrualbalances (7,171 ) (2,166 ) (699 ) (513 ) (144 ) (162 ) (575 )charged-offNet payments or (36,526 ) (3,693 ) (16,028 ) (13,212 ) (4,248 ) (1,881 ) (1,860 )drawsLoans placed on 5,699 1,515 421 54,735 893 27,289 2,369 non-accrualNon-accrual loans (286 ) ? (55 ) ? (1,018 ) (682 ) (276 )brought currentBalance at end of $ 53,115 $ 91,399 $ 96,000 $ 112,361 $ 71,421 $ 75,938 $ 51,374 period Analysis ofallowance for credit losses:Balance atbeginning of $ 123,961 $ 130,361 $ 165,367 $ 170,314 $ 163,481 $ 85,800 $ 56,132 periodTransition impactof adopting ASC ? ? ? ? ? ? 2,983 326Initial allowanceon purchased ? ? ? ? ? ? 2,762 creditdeteriorated loansInitial allowanceon acquired PCD ? ? ? ? ? 18,628 ? loansProvision/(credit) for (8,229 ) (4,204 ) (34,708 ) (4,489 ) 7,003 58,686 24,469 credit lossesLess loanscharged-off, net of recoveries:Commercial real estate:Commercialinvestor real 5,797 (144 ) (27 ) 379 21 (4 ) ? estateCommercialowner-occupied 136 ? ? ? ? ? ? real estateCommercial AD&C 2,007 ? ? ? ? ? ? Commercial (53 ) 2,359 634 56 88 (463 ) 108 businessResidential real estate:Residential (49 ) (11 ) (270 ) 37 (6 ) 15 333 mortgageResidential (2 ) (1 ) ? (1 ) (2 ) (1 ) (2 )constructionConsumer (24 ) (7 ) (39 ) (13 ) 69 86 107 Net charge-offs/ 7,812 2,196 298 458 170 (367 ) 546 (recoveries)Balance at the end $ 107,920 $ 123,961 $ 130,361 $ 165,367 $ 170,314 $ 163,481 $ 85,800 of period Asset quality ratios:Non-performingloans to total 0.80 % 0.93 % 0.94 % 1.11 % 0.72 % 0.77 % 0.80 %loansNon-performingassets to total 0.61 % 0.74 % 0.78 % 0.91 % 0.60 % 0.61 % 0.62 %assetsAllowance forcredit losses to 1.11 % 1.23 % 1.25 % 1.59 % 1.65 % 1.58 % 1.28 %loansAllowance forcredit losses to 138.06 % 131.44 % 132.08 % 143.23 % 228.03 % 204.56 % 159.02 %non-performingloansAnnualized netcharge-offs/ 0.31 % 0.09 % 0.01 % 0.02 % 0.01 % (0.01 )% 0.03 %(recoveries) toaverage loans

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

Three Months Ended September 30, 2021 2020(Dollars in Average Interest^ Annualized Average Interest^ Annualizedthousands and Balances (1) Average Balances (1) Averagetax-equivalent) Yield/Rate Yield/RateAssets Commercial investor $ 3,678,886 $ 37,760 4.07 % $ 3,582,751 $ 39,547 4.39 %real estate loansCommercialowner-occupied real 1,671,442 19,184 4.55 1,628,474 19,215 4.69 estate loansCommercial AD&C 1,161,183 11,702 4.00 977,607 10,647 4.33 loansCommercial business 1,820,598 22,849 4.98 2,207,388 20,015 3.61 loansTotal commercial 8,332,109 91,495 4.36 8,396,220 89,424 4.24 loansResidential 934,365 7,867 3.37 1,189,452 10,899 3.67 mortgage loansResidential 170,511 1,438 3.35 173,280 1,733 3.98 construction loansConsumer loans 452,289 4,033 3.54 543,242 5,053 3.70 Total residential 1,557,165 13,338 3.41 1,905,974 17,685 3.70 and consumer loansTotal loans^ (2) 9,889,274 104,833 4.21 10,302,194 107,109 4.14 Loans held for sale 50,075 379 3.03 54,784 398 2.91 Taxable securities 984,452 3,958 1.61 1,148,573 4,190 1.46 Tax-advantaged 419,044 2,588 2.47 255,665 1,846 2.89 securitiesTotal investment 1,403,496 6,546 1.87 1,404,238 6,036 1.72 securities^ (3)Interest-bearing 777,763 302 0.15 287,817 84 0.12 deposits with banksFederal funds sold 440 ? 0.16 430 ? 0.10 Totalinterest-earning 12,121,048 112,060 3.67 12,049,463 113,627 3.75 assets Less: allowance for (121,630 ) (162,488 ) credit lossesCash and due from 100,292 128,193 banksPremises and 57,220 59,182 equipment, netOther assets 729,530 761,543 Total assets $ 12,886,460 $ 12,835,893 Liabilities andStockholders' EquityInterest-bearing $ 1,425,893 $ 238 0.07 % $ 1,144,328 $ 365 0.13 %demand depositsRegular savings 494,331 67 0.05 391,291 66 0.07 depositsMoney market 3,484,101 1,234 0.14 3,022,710 2,508 0.33 savings depositsTime deposits 1,558,497 1,982 0.50 2,022,703 6,500 1.28 Totalinterest-bearing 6,962,822 3,521 0.20 6,581,032 9,439 0.57 depositsOther borrowings 145,551 43 0.12 709,217 551 0.31 Advances from FHLB ? ? ? 448,929 2,841 2.52 Subordinated debt 206,648 961 1.86 230,309 2,669 4.64 Total borrowings 352,199 1,004 1.13 1,388,455 6,061 1.74 Totalinterest-bearing 7,315,021 4,525 0.25 7,969,487 15,500 0.77 liabilities Noninterest-bearing 3,869,293 3,281,607 demand depositsOther liabilities 147,381 183,053 Stockholders' 1,554,765 1,401,746 equityTotal liabilitiesand stockholders' $ 12,886,460 $ 12,835,893 equity Tax-equivalent netinterest income and $ 107,535 3.42 % $ 98,127 2.98 %spreadLess:tax-equivalent 931 643 adjustmentNet interest income $ 106,604 $ 97,484 Interest income/ 3.67 % 3.75 %earning assetsInterest expense/ 0.15 0.51 earning assetsNet interest margin 3.52 % 3.24 %

(1) Tax-equivalent income has been adjusted using the combined marginal federal and state rate of 25.64% and 25.54% for 2021 and 2020, respectively. The annualized taxable-equivalent adjustments utilized in the above table to compute yields aggregated to $0.9million and $0.6million in 2021 and 2020, 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 SubsidiariesCONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES - UNAUDITED

Nine Months Ended September 30, 2021 2020(Dollars in Average Interest^ Annualized Average Interest^ Annualizedthousands and Balances (1) Average Balances (1) Averagetax-equivalent) Yield/Rate Yield/RateAssets Commercial investor $ 3,662,890 $ 114,525 4.18 % $ 3,079,873 $ 103,238 4.48 %real estate loansCommercialowner-occupied real 1,658,076 57,224 4.61 1,532,154 54,215 4.73 estate loansCommercial AD&C 1,100,431 32,917 4.00 869,181 29,862 4.59 loansCommercial business 2,110,803 72,891 4.62 1,643,992 49,618 4.03 loansTotal commercial 8,532,200 277,557 4.35 7,125,200 236,933 4.44 loansResidential 998,174 26,045 3.48 1,179,305 32,899 3.72 mortgage loansResidential 175,489 4,606 3.51 160,555 4,985 4.15 construction loansConsumer loans 472,356 12,761 3.61 528,152 15,550 3.93 Total residential 1,646,019 43,412 3.52 1,868,012 53,434 3.82 and consumer loansTotal loans^ (2) 10,178,219 320,969 4.22 8,993,212 290,367 4.31 Loans held for sale 66,314 1,465 2.95 47,734 1,094 3.05 Taxable securities 984,354 12,230 1.66 1,095,419 17,557 2.14 Tax-advantaged 446,917 7,995 2.39 232,165 5,407 3.11 securitiesTotal investment 1,431,271 20,225 1.88 1,327,584 22,964 2.31 securities^ (3)Interest-bearing 386,717 395 0.14 291,260 419 0.19 deposits with banksFederal funds sold 538 ? 0.11 369 1 0.36 Totalinterest-earning 12,063,059 343,054 3.80 10,660,159 314,845 3.94 assets Less: allowance for (138,378 ) (114,613 ) credit lossesCash and due from 101,433 126,607 banksPremises and 56,439 59,357 equipment, netOther assets 744,642 751,967 Total assets $ 12,827,195 $ 11,483,477 Liabilities andStockholders' EquityInterest-bearing $ 1,397,623 $ 700 0.07 % $ 1,017,873 $ 1,519 0.20 %demand depositsRegular savings 472,059 189 0.05 363,303 212 0.08 depositsMoney market 3,419,948 3,951 0.15 2,588,870 10,554 0.54 savings depositsTime deposits 1,647,792 7,362 0.60 1,973,773 22,956 1.55 Totalinterest-bearing 6,937,422 12,202 0.24 5,943,819 35,241 0.79 depositsOther borrowings 163,569 139 0.11 553,898 1,731 0.42 Advances from FHLB 148,823 2,649 2.38 585,063 3,863 0.88 Subordinated debt 220,175 5,973 3.62 222,470 7,602 4.56 Total borrowings 532,567 8,761 2.20 1,361,431 13,196 1.29 Totalinterest-bearing 7,469,989 20,963 0.37 7,305,250 48,437 0.89 liabilities Noninterest-bearing 3,677,254 2,697,492 demand depositsOther liabilities 161,071 172,944 Stockholders' 1,518,881 1,307,791 equityTotal liabilitiesand stockholders' $ 12,827,195 $ 11,483,477 equity Tax-equivalent netinterest income and $ 322,091 3.43 % $ 266,408 3.05 %spreadLess:tax-equivalent 2,841 3,076 adjustmentNet interest income $ 319,250 $ 263,332 Interest income/ 3.80 % 3.94 %earning assetsInterest expense/ 0.23 0.61 earning assetsNet interest margin 3.57 % 3.33 %

(1) Tax-equivalent income has been adjusted using the combined marginal federal and state rate of 25.64% and 25.54% for 2021 and 2020, respectively. The annualized taxable-equivalent adjustments utilized in the above table to compute yields aggregated to $2.8million and $3.1million in 2021 and 2020, respectively.(2) Non-accrual loans are included in the average balances.(3) Available-for-sale investments are presented at amortized cost.