GlobeNewswire Inc | Jan 20, 2022 07:00AM EST

January 20, 2022

OLNEY, Md., Jan. 20, 2022 (GLOBE NEWSWIRE) -- Sandy Spring Bancorp, Inc., (Nasdaq-SASR), the parent company of Sandy Spring Bank, reported net income of $45.4 million ($0.99 per diluted common share) for the quarter ended December31, 2021. The current quarter compares to $56.7 million ($1.19 per diluted common share) for the fourth quarter of 2020 and net income of $57.0 million ($1.20 per diluted common share) for the third quarter of 2021.

Core earnings were $47.8 million ($1.05 per diluted common share), compared to $55.7 million ($1.18 per diluted common share) for the quarter ended December31, 2020 and $52.0 million ($1.10 per diluted common share) for the quarter ended September30, 2021. 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, are excluded in the determination of core earnings.

The provision for credit losses for the current quarter was $1.6 million as compared to a credit of $4.5 million for the fourth quarter of 2020 and credit of $8.2 million for the third quarter of 2021. While the continued improvement in forecasted macroeconomic indicators, most notably the forecasted unemployment rate, resulted in credits for the provision for credit losses during most of 2021, the current quarter's provision was primarily the result of the growth in the loan portfolio that occurred during the quarter.

This was an exceptional year for our company. Our wealth group significantly grew our assets under management, our mortgage business delivered another strong year, and our credit quality has remained stable, said Daniel J. Schrider, President and Chief Executive Officer. We are especially pleased with the significant commercial loan production the team delivered in the fourth quarter. These record results will fuel continued growth for our company and represent our position of strength in the market.

Fourth Quarter Highlights:

-- Core earnings for the fourth quarter of 2021 were $47.8 million compared to $55.7 million for the prior year quarter as an increase in net interest income was exceeded by lower non-interest income and increased non-interest expense compared to the fourth quarter of 2020. The decline in non-interest income reflected the effect of lower mortgage banking income, the result of rising mortgage interest rates during 2021. Non-interest expense rose in response to increased compensation costs associated with performance and production benchmarks, operational and staffing costs and expenses related to the implementation of strategic initiatives. -- At December31, 2021, total assets were $12.6 billion, a 2% decrease compared to $12.8 billion at December31, 2020. During the year, excess liquidity resulting from deposit growth and PPP loan forgiveness was used to reduce borrowings as well as fund the loan growth that occurred in the fourth quarter. -- Total loans declined 4%, driven by a reduction of $874.4 million in PPP loans. Excluding the impact of the PPP forgiveness, total commercial loans grew by $681.1 million during the year, while residential mortgage and consumer loans declined a combined $259.9 million due to run-off. In the second half of 2021, $2.1 billion in new gross loan production of which $1.5 billion was funded, more than offset $873.8 million in commercial loan run-off. During the fourth quarter of the current year, funded commercial loan production increased to $937.3 million or 115% compared to $435.2 million for the same quarter of the prior year. -- Year-over-year deposits increased 6%, driven by 14% growth in noninterest-bearing deposits and 2% growth in interest-bearing deposits, reflecting the impact of the PPP program and the growth in transaction relationships, while time deposits declined $366.8 million. -- During the past twelve months, borrowings of $835.5 million were eliminated. The reduction in borrowings included the redemption of $31.0 million of 5.65% subordinated debt acquired as part of the Revere Bank ("Revere") acquisition and $25.0 million of 4.75% subordinated debt acquired as part of the WashingtonFirst Bankshares, Inc. ("WashingtonFirst") acquisition. -- For the fourth quarter of 2021, the net interest margin was 3.51%, compared to 3.38% for the same quarter of 2020, and 3.52% for the third 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 3.52%, compared to 3.31% for fourth quarter of 2020, and 3.49% for the third quarter of 2021. Solely excluding the impact of PPP loans, the current quarters net interest margin would have been 3.30%, compared to 3.46% for the fourth quarter of 2020, and 3.35% for the third quarter of 2021. -- The provision for credit losses was $1.6 million for the current quarter compared to the prior year quarters credit to the provision of $4.5 million. The provision for the current quarter compared to the prior year quarter's credit to the provision was the result of the growth in the loan portfolio during the current quarter. The additions to the allowance during the current quarter to reflect increased portfolio balances were partially offset by reductions that reflected continued improvement in forecasted economic variables. -- Non-interest income for the current quarter decreased by 30% or $9.7 million compared to the prior year quarter. Income from mortgage banking activities declined 75%, which was partially offset by 17% growth in wealth management income, 20% growth in service charges on deposit accounts and 16% growth in bank card fees. -- Non-interest expense for the current quarter increased $4.5 million or 7% compared to the prior year quarter. This increase was driven by increases in compensation costs, predominantly incentive compensation tied to the achievement of performance and loan production benchmarks. -- Return on average assets (ROA) for the quarter ended December31, 2021 was 1.41% and return on average tangible common equity (ROTCE) was 16.07% compared to 1.78% and 21.89%, respectively, for the fourth quarter of 2020. On a non-GAAP basis, the current quarter's core ROA was 1.48% and core ROTCE was 16.92% compared to core ROA of 1.75% and core ROTCE of 21.52% for the fourth quarter of 2020. -- For the fourth quarter of 2021, the GAAP efficiency ratio was 51.75% compared to 46.69% for the fourth quarter of 2020, and 48.23% for the third quarter of 2021. The non-GAAP efficiency ratio for the fourth quarter of 2021 was 50.17% compared to 45.09% for the prior year quarter, and 46.67% for the third quarter of 2021. The deterioration of the non-GAAP efficiency ratio was driven by the combination of a decline in non-interest income and an increase in non-interest expense. -- During the quarter, the Company repurchased 1,088,172 shares of its common stock at an average price of $48.66 per share. The shares repurchased during the quarter completed the authorized repurchase of 2,350,000 shares under the current repurchase authorization.

Balance Sheet and Credit Quality

Total assets declined 2% to $12.6 billion at December31, 2021, as compared to $12.8 billion at December31, 2020. During this period, total loans declined by 4% to $10.0 billion at December31, 2021, compared to $10.4 billion at December31, 2020. Excluding PPP loans, total loans at December31, 2021 grew 5% to $9.8 billion as compared to $9.3 billion at December 31, 2020, as the commercial loan portfolio grew $681.1 million, while the residential mortgage loan portfolio declined $152.6 million. The growth in the commercial portfolio, excluding PPP loans, occurred in all commercial portfolios led by the $506.6 million or 14% growth in the investor owned commercial portfolio. The year-over-year decline in the mortgage loan portfolio resulted from the continuing sale of a majority of new mortgage loan production.

Deposit growth was 6% during the past twelve months, as noninterest-bearing deposits experienced growth of 14% and interest-bearing deposits grew 2%. 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 ratio increased to 9.21% of tangible assets at December31, 2021, compared to 8.61% at December31, 2020 as a result of 2021 earnings, net of the $107.3 million repurchase of common shares, and the decrease in tangible assets during the past year. Excluding the impact of the PPP program from tangible assets at December31, 2021, the tangible common equity ratio would be 9.35%. At December31, 2021, the Company had a total risk-based capital ratio of 14.55%, a common equity tier 1 risk-based capital ratio of 11.88%, a tier 1 risk-based capital ratio of 11.88%, and a tier 1 leverage ratio of 9.26%.

Non-performing loans include non-accrual loans, accruing loans 90 days or more past due and restructured loans. At December31, 2021, the level of non-performing loans to total loans was 0.49% compared to 1.11% at December31, 2020, and 0.80% at September30, 2021. At December31, 2021, non-performing loans totaled $48.8 million, compared to $115.5million at December31, 2020, and $78.2million at September30, 2021. Loans placed on non-accrual during the current quarter amounted to $0.5million compared to $54.7million for the prior year quarter and $5.7million for the third quarter of 2021. Non-accrual loans at quarter end declined from the prior quarter due primarily to payoff activity. Loans greater than 90 days or more past due decreased from the prior quarter as a result of the extension of existing performing portfolio loans that were in process of being extended at the end of the prior quarter end.

The Company recorded net charge-offs of $0.4 million for the fourth quarter of 2021, as compared to net charge-offs of $0.5 million for the fourth quarter of 2020 and net charge-offs of $7.8 million for the third quarter of 2021.

At December31, 2021, the allowance for credit losses was $109.1million or 1.10% of outstanding loans and 224% of non-performing loans, compared to $107.9million or 1.11% of outstanding loans and 138% of non-performing loans at the end of the previous quarter. Excluding PPP loans, the allowance for credit losses to outstanding loans was 1.12% at December 31, 2021. The increase in the allowance during the current quarter compared to the previous quarter was the result of the growth in the loan portfolio during the quarter, net of the impact of continued improvement in forecasted economic metrics, in addition to the update to various metrics applied in the determination of the allowance for credit losses.

Income Statement Review

Quarterly Results

The Company recorded net income of $45.4 million for the three months ended December31, 2021, compared to net income of $56.7 million for the prior year quarter. The results for the current quarter reflect a combination of the impact of an increased provision for credit losses, decreased mortgage banking income and growth in non-interest expense from the fourth quarter of the prior year.

For the fourth quarter of 2021, net interest income increased $5.4 million or 5% compared to the fourth quarter of 2020, due primarily to a significant reduction in interest expense during the preceding twelve months. During this period, as general market interest rates declined, interest income declined modestly by $1.7 million, while interest expense on deposits, notably money market, time deposits, and borrowings, declined to a greater extent, resulting in a $7.2 million decrease in interest expense. Interest expense on interest-bearing deposits declined $3.6 million and interest expense on borrowings declined $3.6 million. For the current quarter, the PPP program contributed $9.2 million to net interest income, of which $8.3 million represented origination fees. The net interest margin for the fourth quarter of 2021 was 3.51% as compared to 3.38% for the same quarter of the prior year, primarily the result of decreased funding costs during the current period. Excluding the net $0.5 million impact of the amortization of the fair value marks derived from acquisitions, the net interest margin for the current quarter would have been 3.52% compared to the adjusted net interest margin of 3.31% for the fourth quarter of 2020.

The provision for credit losses was $1.6 million for the fourth quarter of 2021 compared to a charge of $4.5 million for the fourth quarter of 2020. The provision for credit losses for the third quarter of 2021 was a credit of $8.2 million. The provision for the current quarter compared to the prior year quarter's credit to the provision was the result of the origination of new credits and the changes in the mix of the loan portfolio during the current quarter. Continued improvement in forecasted economic variables continued to positively impact the allowance for credit losses in the fourth quarter of 2021.

Non-interest income decreased $9.7 million or 30% for the fourth quarter of 2021, compared to the prior year quarter. This decrease is the result of a $10.9 million or 75% decline in income from mortgage banking activities, which exceeded the 17% growth in wealth management income, 20% growth in service charges on deposit accounts and 16% growth in bank card fees. In addition, other non-interest income declined 24% compared to the prior year primarily as a result of a decrease in credit related fees. 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 $4.5 million or 7% for the fourth quarter of 2021, compared to the prior year quarter. The increase was driven by rising compensation costs and occupancy and equipment expenses, which were partially offset by a significant reduction in FDIC insurance expense and other expenses. Salary and benefit expense increased $5.5 million as a result of incentive compensation tied to performance and loan production benchmarks. The increase in occupancy and equipment expense reflects increases in depreciation and software amortization expense. FDIC insurance expense declined from the prior year quarter due to the reduction in risk factors applied by the regulatory agency in the determination of the Company's premium. Other expenses decreased principally due to a reduction in the current quarter's provision for credit losses provided on lines of credit compared to the prior year.

For the fourth quarter of 2021, the GAAP efficiency ratio was 51.75% compared to 46.69% for the fourth quarter of 2020, and 48.23% for the third quarter of 2021. The non-GAAP efficiency ratio was 50.17% for the current quarter as compared to 45.09% for the fourth quarter of 2020, and 46.67% for the third quarter of 2021. The increase in the efficiency ratio (reflecting a decrease in efficiency) from the fourth quarter of the prior year to the current year quarter was the result of the 7% growth in non-GAAP non-interest expense combined with the 3% decline in non-GAAP revenue. ROA for the fourth quarter ended December31, 2021 was 1.41% and ROTCE was 16.07% compared to 1.75% and 19.56%, respectively, for the third quarter of 2021. On a non-GAAP basis, the current quarter's core ROA was 1.48% and core ROTCE was 16.92% compared to core ROA of 1.60% and core ROTCE of 17.85% for the prior quarter of 2021.

Full Year Results

The Company recorded net income of $235.1 million for the year ended December31, 2021 compared to net income of $97.0 million for the year ended December 31, 2020. Core earnings were $211.9 million for the year ended December31, 2021 compared to $189.4 million for the prior year. The current year benefited from increased net interest income of $61.4 million and a $45.6 million credit to the provision for credit losses. The current year's non-interest income reflected a decline in mortgage banking income offset by increases in service charges, wealth management income, bank card fees and other non-interest income. Non-interest expense experienced increases in the majority of categories resulting from the full year impact of operational and compensation costs associated with the acquisitions in 2020, the implementation of strategic initiatives and the achievement of performance and loan production benchmarks. 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 the 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 year ended December31, 2021 increased 17% or $61.4 million compared to the prior year 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 loan portfolios. Contributing to the growth in net interest income, the PPP program, net of its funding costs, generated $44.7 million during the current year as compared to $19.0 million in the prior year. The net interest margin improved to 3.56% for the year ended December31, 2021, compared to 3.35% for the prior year. Excluding the net $4.1 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 3.23%.

The provision for credit losses for the year ended December31, 2021 amounted to a credit of $45.6 million as compared to a charge of $85.7 million for 2020. For the year ended December31, 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 the loan growth in the fourth quarter of 2021 and 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.

For the year ended December31, 2021, non-interest income decreased 1% to $102.1 million compared to $102.7 million for 2020. Wealth management income increased $6.3 million year-over-year as assets under management grew $927 million. Service charge income also increased 17% as customer activity increased. As a result of increased transaction volume, bank card fees grew 22% 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 as a result of declining origination volumes.

Non-interest expense was $260.5 million for the year ended December31, 2021, compared to $255.8 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 12%. This growth was driven by a combination of operational and compensation costs associated with the 2020 acquisitions, staffing increases, and incentive compensation associated with volume-based and performance benchmarks, in addition to increases in professional fees and services associated with certain strategic initiatives, intangible asset amortization, marketing and outside data services cost.

The effective tax rate for the year ended December31, 2021 was 24.56%, compared to a tax rate of 22.08% 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 2020.

For the year ended 2021, the GAAP efficiency ratio was 49.47% compared to 54.90% for the same period in 2020. The non-GAAP efficiency ratio the current year was 46.17% compared to 46.53% for to prior year. The improvement in the current years non-GAAP efficiency ratio compared to the prior year was the result of the 13% growth in non-GAAP revenue, which outpaced the 12% 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 fourth 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: 433045. 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 February 3, 2022. A replay of the teleconference will be available through the same time period by calling 1-866-813-9403 under conference call number 511846.

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.com PMantua@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 Year Ended December 31, December 31,(Dollars in % %thousands, 2021 2020 Change 2021 2020 Changeexcept per sharedata)Results of operations:Net interest $ 105,268 $ 99,827 5 % $ 424,518 $ 363,159 17 %incomeProvision/(credit) for 1,585 (4,489 ) (135 ) (45,556 ) 85,669 (153 )credit lossesNon-interest 22,536 32,234 (30 ) 102,055 102,716 (1 )incomeNon-interest 66,141 61,661 7 260,470 255,782 2 expenseIncome beforeincome tax 60,078 74,889 (20 ) 311,659 124,424 150 expenseNet income 45,404 56,662 (20 ) 235,107 96,953 142 Net incomeattributable to $ 45,114 $ 56,194 (20 ) $ 233,599 $ 96,170 143 commonshareholders Return on 1.41 % 1.78 % 1.83 % 0.82 % average assetsReturn onaverage common 11.87 % 15.72 % 15.48 % 7.24 % equityReturn onaverage tangible 16.07 % 21.89 % 21.01 % 10.25 % common equity^(1)Net interest 3.51 % 3.38 % 3.56 % 3.35 % marginEfficiency ratio- GAAP basis^ 51.75 % 46.69 % 49.47 % 54.90 % (2)Efficiency ratio- Non-GAAP basis 50.17 % 45.09 % 46.17 % 46.53 % ^ (2) Per share data: Basic net income $ 0.99 $ 1.19 (17 )% $ 5.00 $ 2.19 128 %per common shareDiluted netincome per $ 0.99 $ 1.19 (17 ) $ 4.98 $ 2.18 129 common shareWeighted averagediluted common 45,655,924 47,284,808 (3 ) 46,899,085 44,132,251 6 sharesDividendsdeclared per $ 0.32 $ 0.30 7 $ 1.28 $ 1.20 7 shareBook value per $ 33.68 $ 31.24 8 $ 33.68 $ 31.24 8 common shareTangible bookvalue per common $ 24.90 $ 22.68 10 $ 24.90 $ 22.68 10 share^ (1)Outstanding 45,118,930 47,056,777 (4 ) 45,118,930 47,056,777 (4 )common shares Financialcondition at period-end:Investment $ 1,507,062 $ 1,413,781 7 % $ 1,507,062 $ 1,413,781 7 %securitiesLoans 9,967,091 10,400,509 (4 ) 9,967,091 10,400,509 (4 )Interest-earning 11,867,952 12,095,936 (2 ) 11,867,952 12,095,936 (2 )assetsAssets 12,590,726 12,798,429 (2 ) 12,590,726 12,798,429 (2 )Deposits 10,624,731 10,033,069 6 10,624,731 10,033,069 6 Interest-bearing 7,158,899 7,856,842 (9 ) 7,158,899 7,856,842 (9 )liabilitiesStockholders' 1,519,679 1,469,955 3 1,519,679 1,469,955 3 equity Capital ratios: Tier 1 leverage^ 9.26 % 8.92 % 9.26 % 8.92 % (3)Common equitytier 1 capital 11.88 % 10.58 % 11.88 % 10.58 % to risk-weightedassets^ (3)Tier 1 capitalto risk-weighted 11.88 % 10.58 % 11.88 % 10.58 % assets^ (3)Total regulatorycapital to 14.55 % 13.93 % 14.55 % 13.93 % risk-weightedassets^ (3)Tangible commonequity to 9.21 % 8.61 % 9.21 % 8.61 % tangible assets^(4)Average equityto average 11.87 % 11.34 % 11.85 % 11.38 % assets Credit quality ratios:Allowance forcredit losses to 1.10 % 1.59 % 1.10 % 1.59 % loansNon-performingloans to total 0.49 % 1.11 % 0.49 % 1.11 % loansNon-performingassets to total 0.40 % 0.91 % 0.40 % 0.91 % assetsAllowance forcredit losses to 223.61 % 143.23 % 223.61 % 143.23 % non-performingloansAnnualized netcharge-offs to 0.01 % 0.02 % 0.11 % 0.01 % average loans^(5)

(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 December31, 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 (CONTINUED)OPERATING EARNINGS - METRICS

Three Months Ended Year Ended December 31, December 31,(Dollars in 2021 2020 2021 2020thousands)Core earnings (non-GAAP):Net income $ 45,404 $ 56,662 $ 235,107 $ 96,953 Plus/ (less)non-GAAP adjustments(net of tax):Provision/(credit) for 1,179 (3,343 ) (33,875 ) 63,789 credit lossesProvision/(credit) forcredit losses 31 1,173 (919 ) 1,173 on unfundedloancommitmentsMerger andacquisition ? 3 33 18,745 expenseAmortizationof intangible 1,197 1,232 4,908 4,632 assetsLoss on FHLB ? ? 6,779 4,414 redemptionInvestmentsecurities (26 ) (26 ) (158 ) (348 )gainsCore earnings $ 47,785 $ 55,701 $ 211,875 $ 189,358 (Non-GAAP) Core earningsper diluted common share(non-GAAP):Weightedaveragecommon shares 45,655,924 47,284,808 46,899,085 44,132,251 outstanding -diluted(GAAP) Earnings perdiluted $ 0.99 $ 1.19 $ 4.98 $ 2.18 common share(GAAP)Core earningsper diluted $ 1.05 $ 1.18 $ 4.52 $ 4.29 common share(non-GAAP) Core returnon average assets(non-GAAP):Average $ 12,791,526 $ 12,645,329 $ 12,818,202 $ 11,775,096 assets (GAAP) Return onaverage 1.41 % 1.78 % 1.83 % 0.82 %assets (GAAP)Core returnon average 1.48 % 1.75 % 1.65 % 1.61 %assets(non-GAAP) Core returnon averagetangible common equity(non-GAAP):Average totalstockholders' $ 1,517,793 $ 1,433,900 $ 1,518,607 $ 1,339,491 equity (GAAP)Average (370,223 ) (370,419 ) (370,223 ) (365,543 )goodwillAverage otherintangible (26,954 ) (33,675 ) (29,403 ) (28,357 )assets, netAveragetangible $ 1,120,616 $ 1,029,806 $ 1,118,981 $ 945,591 common equity(non-GAAP) Return onaveragetangible 16.07 % 21.89 % 21.01 % 10.25 %common equity(non-GAAP)Core returnon averagetangible 16.92 % 21.52 % 18.93 % 20.03 %common equity(non-GAAP)

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

Three Months Ended Year Ended December 31, December 31,(Dollars in 2021 2020 2021 2020thousands)Efficiency ratio (GAAP):Non-interest $ 66,141 $ 61,661 $ 260,470 $ 255,782 expense Net interestincome plus $ 127,804 $ 132,061 $ 526,573 $ 465,875 non-interestincome Efficiency 51.75 % 46.69 % 49.47 % 54.90 %ratio (GAAP) Efficiencyratio (Non-GAAP):Non-interest $ 66,141 $ 61,661 $ 260,470 $ 255,782 expenseLess non-GAAP adjustments:Amortizationof intangible 1,609 1,655 6,600 6,221 assetsLoss on FHLB ? ? 9,117 5,928 redemptionMerger andacquisition ? 3 45 25,174 expenseNon-interestexpense - as $ 64,532 $ 60,003 $ 244,708 $ 218,459 adjusted Net interestincome plus $ 127,804 $ 132,061 $ 526,573 $ 465,875 non-interestincomePlus non-GAAP adjustment:Tax-equivalent 862 1,052 3,703 4,128 incomeLess non-GAAP adjustment:Investmentsecurities 34 35 212 467 gainsNet interestincome plusnon-interest $ 128,632 $ 133,078 $ 530,064 $ 469,536 income - asadjusted Efficiencyratio 50.17 % 45.09 % 46.17 % 46.53 %(Non-GAAP) Tangiblecommon equity ratio:Totalstockholders' $ 1,519,679 $ 1,469,955 $ 1,519,679 $ 1,469,955 equityGoodwill (370,223 ) (370,223 ) (370,223 ) (370,223 )Otherintangible (25,920 ) (32,521 ) (25,920 ) (32,521 )assets, netTangible $ 1,123,536 $ 1,067,211 $ 1,123,536 $ 1,067,211 common equity Total assets $ 12,590,726 $ 12,798,429 $ 12,590,726 $ 12,798,429 Goodwill (370,223 ) (370,223 ) (370,223 ) (370,223 )Otherintangible (25,920 ) (32,521 ) (25,920 ) (32,521 )assets, netTangible $ 12,194,583 $ 12,395,685 $ 12,194,583 $ 12,395,685 assets Tangiblecommon equity 9.21 % 8.61 % 9.21 % 8.61 %ratio Outstanding 45,118,930 47,056,777 45,118,930 47,056,777 common sharesTangible bookvalue per $ 24.90 $ 22.68 $ 24.90 $ 22.68 common share

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

(Dollars in thousands) December 31, December 31, 2021 2020Assets Cash and due from banks $ 65,630 $ 93,651 Federal funds sold 312 291 Interest-bearing deposits with banks 354,078 203,061 Cash and cash equivalents 420,020 297,003 Residential mortgage loans held for sale (at 39,409 78,294 fair value)Investments available-for-sale (at fair 1,465,896 1,348,021 value)Other equity securities 41,166 65,760 Total loans 9,967,091 10,400,509 Less: allowance for credit losses (109,145 ) (165,367 )Net loans 9,857,946 10,235,142 Premises and equipment, net 59,685 57,720 Other real estate owned 1,034 1,455 Accrued interest receivable 34,349 46,431 Goodwill 370,223 370,223 Other intangible assets, net 25,920 32,521 Other assets 275,078 265,859 Total assets $ 12,590,726 $ 12,798,429 Liabilities Noninterest-bearing deposits $ 3,779,630 $ 3,325,547 Interest-bearing deposits 6,845,101 6,707,522 Total deposits 10,624,731 10,033,069 Securities sold under retail repurchase 141,086 543,157 agreements and federal funds purchasedAdvances from FHLB ? 379,075 Subordinated debt 172,712 227,088 Total borrowings 313,798 1,149,320 Accrued interest payable and other 132,518 146,085 liabilitiesTotal liabilities 11,071,047 11,328,474 Stockholders' equity Common stock -- par value $1.00; sharesauthorized 100,000,000; shares issued andoutstanding 45,118,930 and 47,056,777 at 45,119 47,057 December31, 2021 and December31, 2020,respectivelyAdditional paid in capital 751,072 846,922 Retained earnings 732,027 557,271 Accumulated other comprehensive income/ (8,539 ) 18,705 (loss)Total stockholders' equity 1,519,679 1,469,955 Total liabilities and stockholders' equity $ 12,590,726 $ 12,798,429

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

Three Months Ended Year Ended December 31, December 31,(Dollars in thousands, 2021 2020 2021 2020except per share data)Interest income: Interest and fees on $ 103,589 $ 104,756 $ 423,152 $ 393,477 loansInterest on loans held 271 592 1,736 1,686 for saleInterest on deposits 330 27 725 446 with banksInterest and dividendson investment securities:Taxable 3,888 4,866 16,118 22,136 Tax-advantaged 1,992 1,550 8,552 5,814 Interest on federal 1 ? 1 1 funds soldTotal interest income 110,071 111,791 450,284 423,560 Interest Expense: Interest on deposits 2,820 6,410 15,022 41,651 Interest on retailrepurchase agreements 43 234 182 1,965 and federal fundspurchasedInterest on advances ? 2,730 2,649 6,593 from FHLBInterest on 1,940 2,590 7,913 10,192 subordinated debtTotal interest expense 4,803 11,964 25,766 60,401 Net interest income 105,268 99,827 424,518 363,159 Provision/ (credit) for 1,585 (4,489 ) (45,556 ) 85,669 credit lossesNet interest incomeafter provision/ 103,683 104,316 470,074 277,490 (credit) for creditlossesNon-interest income: Investment securities 34 35 212 467 gainsService charges on 2,305 1,917 8,241 7,066 deposit accountsMortgage banking 3,622 14,491 24,509 40,058 activitiesWealth management 9,598 8,215 36,841 30,570 incomeInsurance agency 1,332 1,356 7,017 6,795 commissionsIncome from bank owned 819 705 3,022 2,867 life insuranceBank card fees 1,818 1,570 6,896 5,672 Other income 3,008 3,945 15,317 9,221 Total non-interest 22,536 32,234 102,055 102,716 incomeNon-interest expense: Salaries and employee 41,535 36,080 155,830 134,471 benefitsOccupancy expense of 5,693 5,236 22,405 21,383 premisesEquipment expenses 3,427 3,121 12,883 12,224 Marketing 1,090 1,058 4,730 4,281 Outside data services 2,123 2,394 8,983 8,759 FDIC insurance 991 1,527 4,294 4,727 Amortization of 1,609 1,655 6,600 6,221 intangible assetsMerger and acquisition ? 3 45 25,174 expenseProfessional fees and 2,381 2,473 10,308 7,939 servicesOther expenses 7,292 8,114 34,392 30,603 Total non-interest 66,141 61,661 260,470 255,782 expenseIncome before income 60,078 74,889 311,659 124,424 tax expenseIncome tax expense 14,674 18,227 76,552 27,471 Net income $ 45,404 $ 56,662 $ 235,107 $ 96,953 Net income per share amounts:Basic net income per $ 0.99 $ 1.19 $ 5.00 $ 2.19 common shareDiluted net income per $ 0.99 $ 1.19 $ 4.98 $ 2.18 common shareDividends declared per $ 0.32 $ 0.30 $ 1.28 $ 1.20 share

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

2021 2020(Dollars inthousands, except Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1per share data)Profitability for the quarter:Tax-equivalent $ 110,933 $ 112,060 $ 115,753 $ 115,241 $ 112,843 $ 113,627 $ 116,252 $ 84,966 interest incomeInterest expense 4,803 4,525 6,777 9,661 11,964 15,500 13,413 19,524 Tax-equivalentnet interest 106,130 107,535 108,976 105,580 100,879 98,127 102,839 65,442 incomeTax-equivalent 862 931 930 980 1,052 643 1,325 1,108 adjustmentProvision/(credit) for 1,585 (8,229 ) (4,204 ) (34,708 ) (4,489 ) 7,003 58,686 24,469 credit lossesNon-interest 22,536 24,394 26,259 28,866 32,234 29,390 22,924 18,168 incomeNon-interest 66,141 63,181 62,975 68,173 61,661 60,937 85,438 47,746 expenseIncome/ (loss)before income tax 60,078 76,046 75,534 100,001 74,889 58,934 (19,686 ) 10,287 expense/(benefit)Income taxexpense/ 14,674 19,070 18,271 24,537 18,227 14,292 (5,348 ) 300 (benefit)Net income/ $ 45,404 $ 56,976 $ 57,263 $ 75,464 $ 56,662 $ 44,642 $ (14,338 ) $ 9,987 (loss)GAAP financial performance:Return on average 1.41 % 1.75 % 1.79 % 2.39 % 1.78 % 1.38 % (0.45 ) 0.46 %assets %Return on average 11.87 % 14.54 % 15.07 % 20.72 % 15.72 % 12.67 % (4.15 ) 3.55 %common equity %Return on average )tangible common 16.07 % 19.56 % 20.44 % 28.47 % 21.89 % 17.84 % (5.80 % 5.34 %equityNet interest 3.51 % 3.52 % 3.63 % 3.56 % 3.38 % 3.24 % 3.47 % 3.29 %marginEfficiency ratio 51.75 % 48.23 % 46.89 % 51.08 % 46.69 % 48.03 % 68.66 % 57.87 %- GAAP basis^ (1)Non-GAAPfinancial performance:Core after-tax $ 47,785 $ 52,022 $ 55,133 $ 56,949 $ 55,701 $ 52,126 $ 51,902 $ 29,634 earningsCore return on 1.48 % 1.60 % 1.73 % 1.80 % 1.75 % 1.62 % 1.62 % 1.37 %average assetsCore return onaverage common 12.49 % 13.27 % 14.51 % 15.64 % 15.45 % 14.79 % 15.01 % 10.55 %equityCore return onaverage tangible 16.92 % 17.85 % 19.68 % 21.48 % 21.52 % 20.83 % 20.81 % 15.85 %common equityCore earnings perdiluted common $ 1.05 $ 1.10 $ 1.16 $ 1.20 $ 1.18 $ 1.10 $ 1.10 $ 0.85 shareEfficiency ratio- Non-GAAP basis^ 50.17 % 46.67 % 45.36 % 42.65 % 45.09 % 45.27 % 43.85 % 54.76 %(1)Per share data: Net income/(loss)attributable to $ 45,114 $ 56,622 $ 56,782 $ 74,824 $ 56,194 $ 44,268 $ (14,458 ) $ 9,919 commonshareholdersBasic net income/(loss) per common $ 0.99 $ 1.21 $ 1.20 $ 1.59 $ 1.19 $ 0.94 $ (0.31 ) $ 0.29 shareDiluted netincome/ (loss) $ 0.99 $ 1.20 $ 1.19 $ 1.58 $ 1.19 $ 0.94 $ (0.31 ) $ 0.28 per common shareWeighted averagediluted common 45,655,924 47,086,824 47,523,198 47,415,060 47,284,808 47,175,071 46,988,351 34,743,623 sharesDividendsdeclared per $ 0.32 $ 0.32 $ 0.32 $ 0.32 $ 0.30 $ 0.30 $ 0.30 $ 0.30 shareNon-interest income:Securities gains $ 34 $ 49 $ 71 $ 58 $ 35 $ 51 $ 212 $ 169 Service chargeson deposit 2,305 2,108 1,976 1,852 1,917 1,673 1,223 2,253 accountsMortgage banking 3,622 4,942 5,776 10,169 14,491 14,108 8,426 3,033 activitiesWealth management 9,598 9,392 9,121 8,730 8,215 7,785 7,604 6,966 incomeInsurance agency 1,332 2,285 1,247 2,153 1,356 2,122 1,188 2,129 commissionsIncome from bankowned life 819 818 705 680 705 708 809 645 insuranceBank card fees 1,818 1,775 1,785 1,518 1,570 1,525 1,257 1,320 Other income 3,008 3,025 5,578 3,706 3,945 1,418 2,205 1,653 Totalnon-interest $ 22,536 $ 24,394 $ 26,259 $ 28,866 $ 32,234 $ 29,390 $ 22,924 $ 18,168 incomeNon-interest expense:Salaries and $ 41,535 $ 38,653 $ 38,990 $ 36,652 $ 36,080 $ 36,041 $ 34,297 $ 28,053 employee benefitsOccupancy expense 5,693 5,728 5,497 5,487 5,236 5,575 5,991 4,581 of premisesEquipment 3,427 3,214 3,020 3,222 3,121 3,133 3,219 2,751 expensesMarketing 1,090 1,376 1,052 1,212 1,058 1,305 729 1,189 Outside data 2,123 2,317 2,260 2,283 2,394 2,614 2,169 1,582 servicesFDIC insurance 991 361 1,450 1,492 1,527 1,340 1,378 482 Amortization of 1,609 1,635 1,659 1,697 1,655 1,968 1,998 600 intangible assetsMerger andacquisition ? ? ? 45 3 1,263 22,454 1,454 expenseProfessional fees 2,381 3,031 3,165 1,731 2,473 1,800 1,840 1,826 and servicesOther expenses 7,292 6,866 5,882 14,352 8,114 5,898 11,363 5,228 Totalnon-interest $ 66,141 $ 63,181 $ 62,975 $ 68,173 $ 61,661 $ 60,937 $ 85,438 $ 47,746 expense

(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 in thousands, Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1except per share data)Balance sheets at quarter end: Commercial investor $ 4,141,346 $ 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 1,690,881 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 loans 1,088,094 1,177,949 1,126,960 1,051,013 1,050,973 994,800 997,423 643,114 Commercial business 1,481,834 1,594,528 1,974,366 2,411,109 2,267,548 2,227,246 2,222,810 813,525 loansResidential mortgage 937,570 911,997 960,527 1,022,546 1,105,179 1,173,857 1,211,745 1,116,512 loansResidential 197,652 181,319 172,869 171,028 182,619 175,123 169,050 149,573 construction loansConsumer loans 429,714 450,765 457,576 493,904 517,254 521,999 558,434 453,346 Total loans 9,967,091 9,721,348 10,092,515 10,446,866 10,400,509 10,333,935 10,343,043 6,722,992 Allowance for credit (109,145 ) (107,920 ) (123,961 ) (130,361 ) (165,367 ) (170,314 ) (163,481 ) (85,800 )lossesLoans held for sale 39,409 44,678 71,082 84,930 78,294 88,728 68,765 67,114 Investment securities 1,507,062 1,470,652 1,482,123 1,472,727 1,413,781 1,425,733 1,424,652 1,250,560 Interest-earning 11,867,952 12,245,374 12,167,067 12,132,405 12,095,936 11,965,915 12,447,146 8,222,589 assetsTotal assets 12,590,726 13,017,464 12,925,577 12,873,366 12,798,429 12,678,131 13,290,447 8,929,602 Noninterest-bearing 3,779,630 3,987,411 4,000,636 3,770,852 3,325,547 3,458,804 3,434,038 1,939,937 demand depositsTotal deposits 10,624,731 10,987,400 10,866,466 10,677,752 10,033,069 9,964,969 10,076,834 6,593,874 Customer repurchase 141,086 147,504 140,708 129,318 153,157 142,287 143,579 125,305 agreementsTotal interest-bearing 7,158,899 7,320,132 7,233,536 7,423,262 7,856,842 7,643,381 8,313,546 5,732,349 liabilitiesTotal stockholders' 1,519,679 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 $ 3,769,529 $ 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 1,669,737 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 loans 1,140,059 1,161,183 1,089,287 1,049,597 1,017,304 977,607 969,251 659,494 Commercial business 1,482,901 1,820,598 2,225,885 2,291,097 2,189,828 2,207,388 1,899,264 819,133 loansResidential mortgage 925,093 934,365 994,899 1,066,714 1,136,989 1,189,452 1,208,566 1,139,786 loansResidential 186,129 170,511 176,135 179,925 180,494 173,280 162,978 145,266 construction loansConsumer loans 436,030 452,289 468,686 496,578 515,202 543,242 575,734 465,314 Total loans 9,609,478 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 29,426 50,075 66,958 82,263 68,255 54,784 53,312 35,030 Investment securities 1,535,265 1,403,496 1,482,905 1,407,455 1,418,683 1,404,238 1,398,586 1,179,084 Interest-earning 12,012,576 12,121,048 12,037,701 12,029,424 11,882,542 12,049,463 11,921,132 7,994,618 assetsTotal assets 12,791,526 12,886,460 12,798,355 12,801,539 12,645,329 12,835,893 12,903,156 8,699,342 Noninterest-bearing 3,879,572 3,869,293 3,763,135 3,394,110 3,424,729 3,281,607 3,007,222 1,797,227 demand depositsTotal deposits 10,809,665 10,832,115 10,663,346 10,343,190 9,999,144 9,862,639 9,614,176 6,433,694 Customer repurchase 144,988 145,483 136,286 148,195 146,685 142,694 144,050 135,652 agreementsTotal interest-bearing 7,247,756 7,315,021 7,356,656 7,742,987 7,609,829 7,969,487 8,326,909 5,612,056 liabilitiesTotal stockholders' 1,517,793 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 11.87 % 12.07 % 11.91 % 11.54 % 11.34 % 10.92 % 10.78 % 12.99 %average assetsInvestment securities 12.70 % 12.01 % 12.18 % 12.14 % 11.69 % 11.91 % 11.45 % 15.21 %to earning assetsLoans to earning 83.98 % 79.39 % 82.95 % 86.11 % 85.98 % 86.36 % 83.10 % 81.76 %assetsLoans to assets 79.16 % 74.68 % 78.08 % 81.15 % 81.26 % 81.51 % 77.82 % 75.29 %Loans to deposits 93.81 % 88.48 % 92.88 % 97.84 % 103.66 % 103.70 % 102.64 % 101.96 %Assets under $ 6,078,204 $ 5,733,311 $ 5,676,141 $ 5,401,158 $ 5,151,609 $ 4,732,437 $ 4,520,766 $ 4,001,930 managementCapital measures: Tier 1 leverage^ (1) 9.26 % 9.33 % 9.49 % 9.14 % 8.92 % 8.65 % 8.35 % 8.78 %Common equity tier 1capital to 11.88 % 12.50 % 12.47 % 12.09 % 10.58 % 10.45 % 10.23 % 10.23 %risk-weighted assets ^(1)Tier 1 capital torisk-weighted assets ^ 11.88 % 12.50 % 12.47 % 12.09 % 10.58 % 10.45 % 10.23 % 10.23 %(1)Total regulatorycapital to 14.55 % 15.26 % 15.82 % 15.49 % 13.93 % 14.02 % 13.79 % 14.09 %risk-weighted assets^(1)Book value per common $ 33.68 $ 33.52 $ 33.02 $ 32.04 $ 31.24 $ 30.30 $ 29.58 $ 32.68 shareOutstanding common 45,118,930 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 December31, 2021.

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

2021 2020(Dollars in December September June 30, March 31, December September June 30, March 31,thousands) 31, 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 557 679 680 398 480 320 138 8 mortgageResidential ? ? ? ? ? ? ? ? constructionConsumer ? ? ? ? ? 1 ? ? Total loans 90 557 22,853 680 429 774 414 1,428 8 days past dueNon-accrual loans:Commercial real estate:Commercialinvestor real 12,489 15,386 42,072 42,776 45,227 26,784 26,482 17,770 estateCommercialowner-occupied 9,306 9,854 8,183 8,316 11,561 6,511 6,729 4,074 real estateCommercial AD& 650 1,022 14,489 14,975 15,044 1,678 2,957 829 CCommercial 8,420 9,454 9,435 13,147 22,933 17,659 20,246 10,834 businessResidential real estate:Residential 8,441 9,511 9,440 9,593 10,212 11,296 11,724 12,271 mortgageResidential 55 62 62 ? ? ? ? ? constructionConsumer 6,725 7,826 7,718 7,193 7,384 7,493 7,800 5,596 Totalnon-accrual 46,086 53,115 91,399 96,000 112,361 71,421 75,938 51,374 loansTotalrestructured 2,167 2,199 2,228 2,271 2,317 2,854 2,553 2,575 loans -accruingTotalnon-performing 48,810 78,167 94,307 98,700 115,452 74,689 79,919 53,957 loansOther assetsand other real 1,034 1,105 1,234 1,354 1,455 1,389 1,389 1,416 estate owned(OREO)Totalnon-performing $ 49,844 $ 79,272 $ 95,541 $ 100,054 $ 116,907 $ 76,078 $ 81,308 $ 55,373 assets

For the Quarter Ended,(Dollars in December September June 30, March 31, December September June 30, March 31,thousands) 31, 30, 2021 2021 31, 30, 2020 2020 2021 2021 2020 2020Analysis ofnon-accrual loan activity:Balance atbeginning of $ 53,115 $ 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 (754 ) (7,171 ) (2,166 ) (699 ) (513 ) (144 ) (162 ) (575 )charged-offNet payments or (5,786 ) (36,526 ) (3,693 ) (16,028 ) (13,212 ) (4,248 ) (1,881 ) (1,860 )drawsLoans placed on 511 5,699 1,515 421 54,735 893 27,289 2,369 non-accrualNon-accrual loans (1,000 ) (286 ) ? (55 ) ? (1,018 ) (682 ) (276 )brought currentBalance at end of $ 46,086 $ 53,115 $ 91,399 $ 96,000 $ 112,361 $ 71,421 $ 75,938 $ 51,374 period Analysis ofallowance for credit losses:Balance atbeginning of $ 107,920 $ 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 1,585 (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 (109 ) 5,797 (144 ) (27 ) 379 21 (4 ) ? estateCommercialowner-occupied ? 136 ? ? ? ? ? ? real estateCommercial AD&C ? 2,007 ? ? ? ? ? ? Commercial 564 (53 ) 2,359 634 56 88 (463 ) 108 businessResidential real estate:Residential (80 ) (49 ) (11 ) (270 ) 37 (6 ) 15 333 mortgageResidential (2 ) (2 ) (1 ) ? (1 ) (2 ) (1 ) (2 )constructionConsumer (13 ) (24 ) (7 ) (39 ) (13 ) 69 86 107 Net charge-offs/ 360 7,812 2,196 298 458 170 (367 ) 546 (recoveries)Balance at the end $ 109,145 $ 107,920 $ 123,961 $ 130,361 $ 165,367 $ 170,314 $ 163,481 $ 85,800 of period Asset quality ratios:Non-performingloans to total 0.49 % 0.80 % 0.93 % 0.94 % 1.11 % 0.72 % 0.77 % 0.80 %loansNon-performingassets to total 0.40 % 0.61 % 0.74 % 0.78 % 0.91 % 0.60 % 0.61 % 0.62 %assetsAllowance forcredit losses to 1.10 % 1.11 % 1.23 % 1.25 % 1.59 % 1.65 % 1.58 % 1.28 %loansAllowance forcredit losses to 223.61 % 138.06 % 131.44 % 132.08 % 143.23 % 228.03 % 204.56 % 159.02 %non-performingloansAnnualized netcharge-offs/ 0.01 % 0.31 % 0.09 % 0.01 % 0.02 % 0.01 % (0.01 ) 0.03 %(recoveries) to %average loans

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

Three Months Ended December 31, 2021 2020(Dollars in thousands Average Interest^ Annualized Average Interest^ Annualizedand tax-equivalent) Balances (1) Average Balances (1) Average Yield/Rate Yield/RateAssets Commercial investor $ 3,769,529 $ 38,452 4.05 % $ 3,599,648 $ 38,867 4.30 %real estate loansCommercialowner-occupied real 1,669,737 19,239 4.57 1,643,817 19,440 4.70 estate loansCommercial AD&C loans 1,140,059 11,543 4.02 1,017,304 10,400 4.07 Commercial business 1,482,901 21,500 5.75 2,189,828 20,015 3.64 loansTotal commercial 8,062,226 90,734 4.47 8,450,597 88,722 4.18 loansResidential mortgage 925,093 7,829 3.39 1,136,989 10,102 3.55 loansResidential 186,129 1,521 3.24 180,494 1,698 3.74 construction loansConsumer loans 436,030 3,928 3.57 515,202 4,806 3.71 Total residential and 1,547,252 13,278 3.42 1,832,685 16,606 3.62 consumer loansTotal loans^ (2) 9,609,478 104,012 4.30 10,283,282 105,328 4.08 Loans held for sale 29,426 271 3.68 68,255 592 3.48 Taxable securities 1,114,936 3,888 1.39 1,138,767 4,925 1.73 Tax-advantaged 420,329 2,431 2.31 279,916 1,971 2.81 securitiesTotal investment 1,535,265 6,319 1.65 1,418,683 6,896 1.94 securities^ (3)Interest-bearing 837,741 330 0.16 111,820 27 0.10 deposits with banksFederal funds sold 666 1 0.15 502 ? 0.10 Totalinterest-earning 12,012,576 110,933 3.67 11,882,542 112,843 3.78 assets Less: allowance for (106,873 ) (171,026 ) credit lossesCash and due from 78,370 111,565 banksPremises and 59,450 58,060 equipment, netOther assets 748,003 764,188 Total assets $ 12,791,526 $ 12,645,329 Liabilities and Stockholders' EquityInterest-bearing $ 1,487,392 $ 211 0.06 % $ 1,195,307 $ 293 0.10 %demand depositsRegular savings 512,814 46 0.04 406,637 57 0.06 depositsMoney market savings 3,554,108 920 0.10 3,194,999 1,870 0.23 depositsTime deposits 1,375,779 1,643 0.47 1,777,472 4,190 0.94 Totalinterest-bearing 6,930,093 2,820 0.16 6,574,415 6,410 0.39 depositsFederal funds 11 ? 0.06 230,677 177 0.30 purchasedRepurchase agreements 144,988 43 0.12 146,685 57 0.16 Advances from FHLB ? ? ? 428,278 2,730 2.54 Subordinated debt 172,664 1,940 4.49 229,774 2,590 4.51 Total borrowings 317,663 1,983 2.48 1,035,414 5,554 2.13 Totalinterest-bearing 7,247,756 4,803 0.26 7,609,829 11,964 0.63 liabilities Noninterest-bearing 3,879,572 3,424,729 demand depositsOther liabilities 146,405 176,871 Stockholders' equity 1,517,793 1,433,900 Total liabilities and $ 12,791,526 $ 12,645,329 stockholders' equity Tax-equivalent netinterest income and $ 106,130 3.41 % $ 100,879 3.15 %spreadLess: tax-equivalent 862 1,052 adjustmentNet interest income $ 105,268 $ 99,827 Interest income/ 3.67 % 3.78 %earning assetsInterest expense/ 0.16 0.40 earning assetsNet interest margin 3.51 % 3.38 %

(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 $1.1million 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.

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

Year Ended December 31, 2021 2020(Dollars in Average Annualized Average Annualizedthousands and Balances Interest^(1) Average Balances Interest^(1) Averagetax-equivalent) Yield/Rate Yield/RateAssets Commercial investor $ 3,689,769 $ 152,977 4.15 % $ 3,210,527 $ 142,105 4.43 %real estate loansCommercialowner-occupied real 1,661,015 76,463 4.60 1,560,223 73,655 4.72 estate loansCommercial AD&C 1,110,420 44,460 4.00 906,414 40,262 4.44 loansCommercial business 1,952,537 94,391 4.83 1,781,197 69,633 3.91 loansTotal commercial 8,413,741 368,291 4.38 7,458,361 325,655 4.37 loansResidential 979,754 33,874 3.46 1,168,668 43,001 3.68 mortgage loansResidential 178,171 6,127 3.44 165,567 6,683 4.04 construction loansConsumer loans 463,200 16,689 3.60 524,897 20,356 3.88 Total residential 1,621,125 56,690 3.50 1,859,132 70,040 3.77 and consumer loansTotal loans^ (2) 10,034,866 424,981 4.24 9,317,493 395,695 4.25 Loans held for sale 57,016 1,736 3.05 52,893 1,686 3.19 Taxable securities 1,017,268 16,118 1.58 1,106,315 22,482 2.03 Tax-advantaged 440,215 10,426 2.37 244,168 7,378 3.02 securitiesTotal investment 1,457,483 26,544 1.82 1,350,483 29,860 2.21 securities^ (3)Interest-bearing 500,400 725 0.14 246,155 446 0.18 deposits with banksFederal funds sold 570 1 0.12 403 1 0.28 Totalinterest-earning 12,050,335 453,987 3.77 10,967,427 427,688 3.90 assets Less: allowance for (130,437 ) (128,793 ) credit lossesCash and due from 95,620 122,826 banksPremises and 57,198 59,031 equipment, netOther assets 745,486 754,605 Total assets $ 12,818,202 $ 11,775,096 Liabilities andStockholders' EquityInterest-bearing $ 1,420,249 $ 911 0.06 % $ 1,062,474 $ 1,812 0.17 %demand depositsRegular savings 482,331 235 0.05 374,196 269 0.07 depositsMoney market 3,453,764 4,871 0.14 2,741,230 12,424 0.45 savings depositsTime deposits 1,579,230 9,005 0.57 1,924,429 27,146 1.41 Totalinterest-bearing 6,935,574 15,022 0.22 6,102,329 41,651 0.68 depositsFederal funds 15,154 13 0.08 367,240 1,515 0.41 purchasedRepurchase 143,734 169 0.12 142,283 450 0.32 agreementsAdvances from FHLB 111,311 2,649 2.38 545,652 6,593 1.21 Subordinated debt 208,199 7,913 3.80 224,306 10,192 4.54 Total borrowings 478,398 10,744 2.25 1,279,481 18,750 1.47 Totalinterest-bearing 7,413,972 25,766 0.35 7,381,810 60,401 0.82 liabilities Noninterest-bearing 3,728,249 2,880,294 demand depositsOther liabilities 157,374 173,501 Stockholders' 1,518,607 1,339,491 equityTotal liabilitiesand stockholders' $ 12,818,202 $ 11,775,096 equity Tax-equivalent netinterest income and $ 428,221 3.42 % $ 367,287 3.08 %spreadLess:tax-equivalent 3,703 4,128 adjustmentNet interest income $ 424,518 $ 363,159 Interest income/ 3.77 % 3.90 %earning assetsInterest expense/ 0.21 0.55 earning assetsNet interest margin 3.56 % 3.35 %

(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 $3.7million and $4.1million 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.