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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
 
FORM 8-K
CURRENT REPORT
 
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported): July 23, 2024
 
SANDY SPRING BANCORP, INC.
(Exact name of registrant as specified in its charter)
  
Maryland000-1906552-1532952
(State or other jurisdiction
of incorporation)		(Commission File Number)(IRS Employer
Identification No.)
 
17801 Georgia Avenue, Olney, Maryland 20832
(Address of principal executive offices, including zip code)
 
Registrant’s telephone number, including area code: (301) 774-6400
 
Not Applicable
(Former name or former address, if changed since last report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
¨Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
¨Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
¨Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
¨Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
Securities registered pursuant to Section 12(b) of the Act:
 
Title of each classTrading Symbol(s)Name of exchange on which registered
Common Stock, par value $1.00 per shareSASRThe NASDAQ Stock Market LLC
 
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company ¨
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨



Item 2.02Results of Operations and Financial Condition
 
On July 23, 2024, Sandy Spring Bancorp, Inc. (the “Company”) issued a news release announcing its results of operations and financial condition for the quarter ended June 30, 2024. A copy of the news release is included as Exhibit 99.1 to this report.
Item 7.01Regulation FD Disclosure
 
The Company is providing supplemental information regarding its quarterly results and related matters. A copy of the supplemental information is included as Exhibit 99.2 to this report and will be posted on the Company’s website at www.sandyspringbank.com. The supplemental information is being furnished pursuant to Item 7.01 and, in accordance with General Instruction B.2 of Form 8-K, the information contained therein shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liabilities under that Section. Furthermore, the information contained in Exhibit 99.2 shall not be deemed to be incorporated by reference into the filings of the Company under the Securities Act of 1933.
 
Item 9.01Financial Statements and Exhibits
 
Exhibits.
 
Exhibit No.Description
 
Press release dated July 23, 2024
 
Supplemental Information dated July 23, 2024
104Cover Page Interactive Data File (embedded within the Inline XBRL document)



SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 SANDY SPRING BANCORP, INC.
 (Registrant)
 
Date: July 23, 2024
By:/s/ Daniel J. Schrider
  Daniel J. Schrider
  President and Chief Executive Officer


Exhibit 99.1
tm2033877d1_ex99-1img01a.jpg
NEWS RELEASE

FOR IMMEDIATE RELEASE

SANDY SPRING BANCORP REPORTS SECOND QUARTER EARNINGS OF $22.8 MILLION

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

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

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

Second Quarter Highlights

•Total assets at June 30, 2024 increased by 1% to $14.0 billion compared to $13.9 billion at March 31, 2024.

•Total loans increased by $119.6 million or 1% to $11.5 billion as of June 30, 2024 compared to $11.4 billion at March 31, 2024. During the current quarter, AD&C and commercial business loans and lines increased by $94.0 million and $91.9 million, respectively, while the commercial investor real estate segment declined by $64.5 million. Total residential mortgage and consumer loan portfolios remained relatively unchanged during this period.

•Deposits increased by $113.0 million or 1% to $11.3 billion at June 30, 2024 compared to $11.2 billion at March 31, 2024. This increase was entirely driven by noninterest-bearing deposits, which increased by $113.5 million during the current quarter due to higher balances in commercial and small business checking accounts. Interest-bearing deposits were relatively unchanged as $167.6 million and $99.0 million increases in money market and savings accounts, respectively, were fully offset by the $172.5 million reduction in time deposits, of which $154.7 million was related to a reduction in brokered time deposits, and the $94.6 million decline in interest checking accounts. Total deposits, excluding brokered deposits, increased by $271.2 million or 3% quarter-over-quarter and represented 94% of the total deposits as of June 30, 2024.

•The ratio of non-performing loans to total loans was 0.81% at June 30, 2024 compared to 0.74% at March 31, 2024 and 0.44% at June 30, 2023. Net charge-offs for the current quarter totaled $0.2 million.

•Net interest income for the second quarter of 2024 grew $0.9 million or 1% compared to the previous quarter and decreased by $10.2 million or 11% compared to the second quarter of 2023. Compared to the previous quarter, interest income declined by $0.9 million, while interest expense decreased by $1.8 million.

•The net interest margin was 2.46% for the second quarter of 2024 compared to 2.41% for the first quarter of 2024 and 2.73% for the second quarter of 2023. Compared to the linked quarter, the rate paid on interest-bearing liabilities decreased three basis points, while the yield on interest-earning assets rose two basis points.

•Provision for credit losses directly attributable to the funded loan portfolio was $3.0 million for the current quarter compared to $3.3 million in the previous quarter and $4.5 million in the prior year quarter. The current quarter's provision expense is a product of higher individual reserves on collateral-dependent loans along with overall growth of the loan portfolio, partially offset by lower qualitative adjustments due to the reduction in commercial investor


real estate loans. In addition, during the current quarter, the reserve for unfunded commitments decreased by $1.9 million as a result of higher utilization rates on lines of credit.

•Non-interest income for the second quarter of 2024 increased by 7% or $1.2 million compared to the linked quarter and grew by 14% or $2.4 million compared to the prior year quarter. The quarter-over-quarter increase was mainly driven by higher BOLI mortality-related income, higher wealth management income, and higher income from mortgage banking activities.

•Non-interest expense for the second quarter of 2024 increased by $0.1 million compared to the first quarter of 2024 and declined by $1.0 million or 1% compared to the prior year quarter. The slight increase in non-interest expense quarter-over-quarter was primarily due to higher salaries and benefits and an increase in marketing expenses, which were offset by lower general operating expenses.

•Return on average assets (“ROA”) for the quarter ended June 30, 2024 was 0.66% and return on average tangible common equity (“ROTCE”) was 8.27% compared to 0.58% and 7.39%, respectively, for the first quarter of 2024 and 0.70% and 8.93%, respectively, for the second quarter of 2023. On a non-GAAP basis, the current quarter's core ROA was 0.70% and core ROTCE was 8.27% compared to 0.63% and 7.39%, respectively, for the previous quarter and 0.77% and 9.43%, respectively, for the second quarter of 2023.

•The GAAP efficiency ratio was 68.19% for the second quarter of 2024, compared to 69.60% for the first quarter of 2024 and 64.22% for the second quarter of 2023. The non-GAAP efficiency ratio was 65.31% for the second quarter of 2024 compared to 66.73% for the first quarter of 2024 and 60.68% for the prior year quarter. The decrease in non-GAAP efficiency ratio (reflecting an increase in efficiency) in the current quarter compared to the previous quarter was the result of higher net revenue in the current quarter coupled with relatively stable non-interest expense.

Balance Sheet and Credit Quality

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

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

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

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

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

Non-performing loans include non-accrual loans and accruing loans 90 days or more past due. At June 30, 2024, non-performing loans totaled $93.0 million, compared to $84.4 million at March 31, 2024 and $49.5 million at June 30, 2023. The non-


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

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

Income Statement Review

Quarterly Results

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

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

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

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

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

Non-interest expense for the second quarter of 2024 increased $0.1 million compared to the first quarter of 2024 and declined $1.0 million or 1% compared to the second quarter of 2023. The quarter-over-quarter increase is predominantly attributable to the


$1.1 million increase in salaries and benefits coupled with the $0.5 million increase in marketing expense. These increases were fully offset by lower general operating expenses, which declined by $1.8 million.

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

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

Year-to-Date Results

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

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

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

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

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

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

Explanation of Non-GAAP Financial Measures

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



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

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

Conference Call

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

About Sandy Spring Bancorp, Inc.

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

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

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

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

Forward-Looking Statements

Sandy Spring Bancorp’s forward-looking statements are subject to significant risks and uncertainties that may cause actual results to differ materially from those in such statements. These risks and uncertainties include, but are not limited to, the risks identified in our quarterly and annual reports and the following: changes in general business and economic conditions nationally or in the markets that we serve; changes in consumer and business confidence, investor sentiment, or consumer spending or savings behavior; changes in the level of inflation; changes in the demand for loans, deposits and other financial services that we provide; the possibility that future credit losses may be higher than currently expected; the impact of the interest rate environment on our business, financial condition and results of operations; the impact of compliance with changes in laws, regulations and regulatory


interpretations, including changes in income taxes; changes in credit ratings assigned to us or our subsidiaries; the ability to realize benefits and cost savings from, and limit any unexpected liabilities associated with, any business combinations; competitive pressures among financial services companies; the ability to attract, develop and retain qualified employees; our ability to maintain the security of our data processing and information technology systems; the impact of changes in accounting policies, including the introduction of new accounting standards; the impact of judicial or regulatory proceedings; the impact of fiscal and governmental policies of the United States federal government; the impact of health emergencies, epidemics or pandemics; the effects of climate change; and the impact of natural disasters, extreme weather events, military conflict, terrorism or other geopolitical events. Sandy Spring Bancorp provides greater detail regarding some of these factors in its Form 10-K for the year ended December 31, 2023, including in the Risk Factors section of that report, and in its other SEC reports. Sandy Spring Bancorp’s forward-looking statements may also be subject to other risks and uncertainties, including those that it may discuss elsewhere in this news release or in its filings with the SEC, accessible on the SEC’s Web site at www.sec.gov.




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

Three Months Ended
June 30,		%
Change		Six Months Ended
June 30,		%
Change
(Dollars in thousands, except per share data)
2024202320242023
Results of operations:
Net interest income$80,285$90,471(11)%$159,628$187,773(15)%
Provision/ (credit) for credit losses1,0205,055(80)%3,408(16,481)N/M
Non-interest income19,58717,17614 37,95433,12715 
Non-interest expense68,10469,136(1)136,110135,441— 
Income before income tax expense30,74833,456(8)58,064101,940(43)
Net income22,80724,745(8)43,17975,998(43)
Net income attributable to common shareholders$22,800$24,712(8)$43,145$75,821(43)
Pre-tax pre-provision net income (1)
$31,768$38,511(18)$61,472$85,459(28)
Return on average assets0.66 %0.70 %0.62 %1.09 %
Return on average common equity5.81 %6.46 %5.49 %10.12 %
Return on average tangible common equity (1)
8.27 %8.93 %7.83 %13.88 %
Net interest margin2.46 %2.73 %2.44 %2.86 %
Efficiency ratio - GAAP basis (2)
68.19 %64.22 %68.89 %61.31 %
Efficiency ratio - Non-GAAP basis (2)
65.31 %60.68 %66.01 %58.73 %
Per share data:
Basic net income per common share$0.51$0.55(7)%$0.96$1.69(43)%
Diluted net income per common share$0.51$0.55(8)$0.96$1.69(43)
Weighted average diluted common shares45,145,21444,888,7591 45,113,01944,876,8731 
Dividends declared per share$0.34$0.34— $0.68$0.68— 
Book value per common share$35.45$34.313 $35.45$34.313 
Tangible book value per common share (1)
$26.72$25.824 $26.72$25.824 
Outstanding common shares45,109,67144,862,3691 45,109,67144,862,3691 
Financial condition at period-end:
Investment securities$1,401,511$1,463,554(4)%$1,401,511$1,463,554(4)%
Loans11,483,92111,369,6391 11,483,92111,369,6391 
Assets14,008,34313,994,545— 14,008,34313,994,545— 
Deposits11,340,22810,958,9223 11,340,22810,958,9223 
Stockholders' equity1,599,0041,539,0324 1,599,0041,539,0324 
Capital ratios:
Tier 1 leverage (3)
9.70 %9.42 %9.70 %9.42 %
Common equity tier 1 capital to risk-weighted assets (3)
11.28 %10.65 %11.28 %10.65 %
Tier 1 capital to risk-weighted assets (3)
11.28 %10.65 %11.28 %10.65 %
Total regulatory capital to risk-weighted assets (3)
15.49 %14.60 %15.49 %14.60 %
Tangible common equity to tangible assets (4)
8.85 %8.51 %8.85 %8.51 %
Average equity to average assets11.32 %10.89 %11.29 %10.80 %
Credit quality ratios:
Allowance for credit losses to loans1.10 %1.06 %1.10 %1.06 %
Non-performing loans to total loans0.81 %0.44 %0.81 %0.44 %
Non-performing assets to total assets0.68 %0.36 %0.68 %0.36 %
Allowance for credit losses to non-performing loans135.35 %243.21 %135.35 %243.21 %
Annualized net charge-offs/ (recoveries) to average loans (5)
0.01 %0.06 %0.02 %0.03 %

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


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

Three Months Ended
June 30,		Six Months Ended
June 30,
(Dollars in thousands)2024202320242023
Core earnings (non-GAAP):
Net income (GAAP)$22,807$24,745$43,179$75,998
Plus/ (less) non-GAAP adjustments (net of tax)(1):
Amortization of intangible assets1,5939463,1371,919
Severance expense—1,445—1,445
Contingent payment expense———27
Core earnings (Non-GAAP)$24,400$27,136$46,316$79,389
Core earnings per diluted common share (non-GAAP):
Weighted average common shares outstanding - diluted (GAAP)45,145,21444,888,75945,113,01944,876,873
Earnings per diluted common share (GAAP)$0.51$0.55$0.96$1.69
Core earnings per diluted common share (non-GAAP)$0.54$0.60$1.03$1.77
Core return on average assets (non-GAAP):
Average assets (GAAP)$13,956,261$14,094,653$14,009,099$14,022,364
Return on average assets (GAAP)
0.66 %0.70 %0.62 %1.09 %
Core return on average assets (non-GAAP)0.70 %0.77 %0.66 %1.14 %
Return/ Core return on average tangible common equity (non-GAAP):
Net Income (GAAP)$22,807$24,745$43,179$75,998
Plus: Amortization of intangible assets (net of tax)1,5939463,1371,919
Net income before amortization of intangible assets$24,400$25,691$46,316$77,917
Average total stockholders' equity (GAAP)$1,579,582$1,535,465$1,582,242$1,513,817
Average goodwill(363,436)(363,436)(363,436)(363,436)
Average other intangible assets, net(29,874)(18,074)(29,567)(18,724)
Average tangible common equity (non-GAAP)$1,186,272$1,153,955$1,189,239$1,131,657
Return on average tangible common equity (non-GAAP)
8.27 %8.93 %7.83 %13.88 %
Core return on average tangible common equity (non-GAAP)8.27 %9.43 %7.83 %14.15 %
(1) Tax adjustments have been determined using the combined marginal federal and state rate of 25.37% and 25.47% for 2024 and 2023, respectively.


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

Three Months Ended
June 30,		Six Months Ended
June 30,
(Dollars in thousands)2024202320242023
Pre-tax pre-provision net income:
Net income (GAAP)$22,807$24,745$43,179$75,998
Plus/ (less) non-GAAP adjustments:
Income tax expense7,9418,71114,88525,942
Provision/ (credit) for credit losses1,0205,0553,408(16,481)
Pre-tax pre-provision net income (non-GAAP)$31,768$38,511$61,472$85,459
Efficiency ratio (GAAP):
Non-interest expense$68,104$69,136$136,110$135,441
Net interest income plus non-interest income$99,872$107,647$197,582$220,900
Efficiency ratio (GAAP)68.19%64.22 %68.89 %61.31 %
Efficiency ratio (Non-GAAP):
Non-interest expense$68,104$69,136$136,110$135,441
Less non-GAAP adjustments:
Amortization of intangible assets2,1351,2694,2042,575
Severance expense—1,939—1,939
Contingent payment expense———36
Non-interest expense - as adjusted$65,969$65,928$131,906$130,891
Net interest income plus non-interest income
$99,872$107,647$197,582$220,900
Plus non-GAAP adjustment:
Tax-equivalent income1,1391,0062,2381,976
Less/ (plus) non-GAAP adjustment:
Investment securities gains/ (losses)————
Net interest income plus non-interest income - as adjusted$101,011$108,653$199,820$222,876
Efficiency ratio (Non-GAAP)
65.31%60.68 %66.01 %58.73 %
Tangible common equity ratio:
Total stockholders' equity$1,599,004$1,539,032$1,599,004$1,539,032
Goodwill(363,436)(363,436)(363,436)(363,436)
Other intangible assets, net(30,087)(17,280)(30,087)(17,280)
Tangible common equity$1,205,481$1,158,316$1,205,481$1,158,316
Total assets
$14,008,343$13,994,545$14,008,343$13,994,545
Goodwill(363,436)(363,436)(363,436)(363,436)
Other intangible assets, net(30,087)(17,280)(30,087)(17,280)
Tangible assets$13,614,820$13,613,829$13,614,820$13,613,829
Tangible common equity ratio
8.85%8.51 %8.85 %8.51 %
Outstanding common shares45,109,67144,862,36945,109,67144,862,369
Tangible book value per common share$26.72$25.82$26.72$25.82




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

(Dollars in thousands)June 30,
2024		December 31,
2023
Assets
Cash and due from banks$84,464 $82,257 
Federal funds sold— 245 
Interest-bearing deposits with banks322,246 463,396 
Cash and cash equivalents406,710 545,898 
Residential mortgage loans held for sale (at fair value)18,961 10,836 
Investments held-to-maturity (fair values of $187,389 and $200,411 at June 30, 2024 and December 31, 2023, respectively)
226,233 236,165 
Investments available-for-sale (at fair value)1,101,846 1,102,681 
Other investments, at cost73,432 75,607 
Total loans11,483,921 11,366,989 
Less: allowance for credit losses - loans(125,863)(120,865)
Net loans11,358,058 11,246,124 
Premises and equipment, net58,212 59,490 
Other real estate owned2,700 — 
Accrued interest receivable46,668 46,583 
Goodwill363,436 363,436 
Other intangible assets, net30,087 28,301 
Other assets322,000 313,051 
Total assets$14,008,343 $14,028,172 
Liabilities
Noninterest-bearing deposits
$2,931,405 $2,914,161 
Interest-bearing deposits8,408,823 8,082,377 
Total deposits11,340,228 10,996,538 
Securities sold under retail repurchase agreements75,038 75,032 
Federal Reserve Bank borrowings— 300,000 
Advances from FHLB500,000 550,000 
Subordinated debt371,101 370,803 
Total borrowings946,139 1,295,835 
Accrued interest payable and other liabilities122,972 147,657 
Total liabilities12,409,339 12,440,030 
Stockholders' equity
Common stock -- par value $1.00; shares authorized 100,000,000; shares issued and outstanding 45,109,671 and 44,913,561 at June 30, 2024 and December 31, 2023, respectively.
45,110 44,914 
Additional paid in capital745,336 742,243 
Retained earnings910,552 898,316 
Accumulated other comprehensive loss(101,994)(97,331)
Total stockholders' equity1,599,004 1,588,142 
Total liabilities and stockholders' equity$14,008,343 $14,028,172 


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

Three Months Ended
June 30,		Six Months Ended
June 30,
(Dollars in thousands, except per share data)2024202320242023
Interest income:
Interest and fees on loans$151,335 $144,274 $301,970 $284,001 
Interest on loans held for sale309 307 437 459 
Interest on deposits with banks4,424 4,922 11,210 7,608 
Interest and dividend income on investment securities:
Taxable7,216 6,848 13,879 13,856 
Tax-advantaged1,826 1,795 3,623 3,565 
Interest on federal funds sold3 4 8 8 
Total interest income165,113 158,150 331,127 309,497 
Interest expense:
Interest on deposits74,409 51,325 147,775 92,113 
Interest on retail repurchase agreements and federal funds purchased
1,052 4,191 4,438 6,295 
Interest on advances from FHLB5,420 8,216 11,393 15,423 
Interest on subordinated debt3,947 3,947 7,893 7,893 
Total interest expense84,828 67,679 171,499 121,724 
Net interest income80,285 90,471 159,628 187,773 
Provision/ (credit) for credit losses1,020 5,055 3,408 (16,481)
Net interest income after provision/ (credit) for credit losses79,265 85,416 156,220 204,254 
Non-interest income:
Service charges on deposit accounts2,939 2,606 5,756 4,994 
Mortgage banking activities1,621 1,817 2,995 3,062 
Wealth management income10,455 9,031 20,413 18,023 
Income from bank owned life insurance1,816 1,251 2,976 2,158 
Bank card fees445 447 858 865 
Other income2,311 2,024 4,956 4,025 
Total non-interest income19,587 17,176 37,954 33,127 
Non-interest expense:
Salaries and employee benefits37,821 40,931 74,519 79,857 
Occupancy expense of premises4,805 4,764 9,621 9,611 
Equipment expenses3,868 3,760 7,831 7,877 
Marketing1,288 1,589 2,030 3,132 
Outside data services3,286 2,853 6,389 5,367 
FDIC insurance2,951 2,375 5,862 4,513 
Amortization of intangible assets2,135 1,269 4,204 2,575 
Professional fees and services4,946 4,161 9,826 7,845 
Other expenses7,004 7,434 15,828 14,664 
Total non-interest expense68,104 69,136 136,110 135,441 
Income before income tax expense30,748 33,456 58,064 101,940 
Income tax expense7,941 8,711 14,885 25,942 
Net income$22,807 $24,745 $43,179 $75,998 

Net income per share amounts:
Basic net income per common share$0.51 $0.55 $0.96 $1.69 
Diluted net income per common share$0.51 $0.55 $0.96 $1.69 
Dividends declared per share$0.34 $0.34 $0.68 $0.68 


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

20242023
(Dollars in thousands, except per share data)Q2Q1Q4Q3Q2Q1
Profitability for the quarter:
Tax-equivalent interest income
$166,252$167,113$166,729$163,479$159,156$152,317
Interest expense    
84,82886,67183,92077,33067,67954,045
Tax-equivalent net interest income81,42480,44282,80986,14991,47798,272
Tax-equivalent adjustment
1,1391,0991,1131,0681,006970
Provision/ (credit) for credit losses1,0202,388(3,445)2,3655,055(21,536)
Non-interest income
19,58718,36716,56017,39117,17615,951
Non-interest expense
68,10468,00667,14272,47169,13666,305
Income before income tax expense30,74827,31634,55927,63633,45668,484
Income tax expense7,9416,9448,4596,8908,71117,231
Net income$22,807$20,372$26,100$20,746$24,745$51,253
GAAP financial performance:
Return on average assets0.66 %0.58 %0.73 %0.58 %0.70 %1.49 %
Return on average common equity5.81 %5.17 %6.70 %5.35 %6.46 %13.93 %
Return on average tangible common equity8.27 %7.39 %9.26 %7.42 %8.93 %19.10 %
Net interest margin2.46 %2.41 %2.45 %2.55 %2.73 %2.99 %
Efficiency ratio - GAAP basis68.19 %69.60 %68.33 %70.72 %64.22 %58.55 %
Non-GAAP financial performance:
Pre-tax pre-provision net income$31,768$29,704$31,114$30,001$38,511$46,948
Core after-tax earnings$24,400$21,916$27,147$27,766$27,136$52,253
Core return on average assets0.70 %0.63 %0.76 %0.78 %0.77 %1.52 %
Core return on average common equity6.21 %5.56 %6.97 %7.16 %7.09 %14.20 %
Core return on average tangible common equity8.27 %7.39 %9.26 %9.51 %9.43 %19.11 %
Core earnings per diluted common share$0.54$0.49$0.60$0.62$0.60$1.16
Efficiency ratio - Non-GAAP basis65.31 %66.73 %66.16 %60.91 %60.68 %56.87 %
Per share data:
Net income attributable to common shareholders$22,800$20,346$26,066$20,719$24,712$51,084
Basic net income per common share$0.51$0.45$0.58$0.46$0.55$1.14
Diluted net income per common share$0.51$0.45$0.58$0.46$0.55$1.14
Weighted average diluted common shares45,145,21445,086,47145,009,57444,960,45544,888,75944,872,582
Dividends declared per share$0.34$0.34$0.34$0.34$0.34$0.34
Non-interest income:
Service charges on deposit accounts2,9392,8172,7492,7042,6062,388
Mortgage banking activities1,6211,3747921,6821,8171,245
Wealth management income10,4559,9589,2199,3919,0318,992
Income from bank owned life insurance1,8161,1601,2078451,251907
Bank card fees445413454450447418
Other income2,3112,6452,1392,3192,0242,001
Total non-interest income$19,587$18,367$16,560$17,391$17,176$15,951
Non-interest expense:
Salaries and employee benefits$37,821$36,698$35,482$44,853$40,931$38,926
Occupancy expense of premises4,8054,8164,5584,6094,7644,847
Equipment expenses3,8683,9633,9873,8113,7604,117
Marketing1,2887421,2427291,5891,543
Outside data services3,2863,1033,0002,8192,8532,514
FDIC insurance2,9512,9112,6152,3332,3752,138
Amortization of intangible assets2,1352,0691,4031,2451,2691,306
Professional fees and services4,9464,8805,6284,5094,1613,684
Other expenses7,0048,8249,2277,5637,4347,230
Total non-interest expense$68,104$68,006$67,142$72,471$69,136$66,305



Sandy Spring Bancorp, Inc. and Subsidiaries
HISTORICAL TRENDS - QUARTERLY FINANCIAL DATA - UNAUDITED
20242023
(Dollars in thousands, except per share data)Q2Q1Q4Q3Q2Q1
Balance sheets at quarter end:
Commercial investor real estate loans$4,933,329$4,997,879$5,104,425$5,137,694$5,131,210$5,167,456
Commercial owner-occupied real estate loans1,747,7081,741,1131,755,2351,760,3841,770,1351,769,928
Commercial AD&C loans1,184,2961,090,259988,967938,6731,045,7421,046,665
Commercial business loans1,601,5101,509,5921,504,8801,454,7091,423,6141,437,478
Residential mortgage loans1,521,8901,511,6241,474,5211,432,0511,385,7431,328,524
Residential construction loans78,02797,685121,419160,345190,690223,456
Consumer loans417,161416,132417,542416,436422,505421,734
Total loans11,483,92111,364,28411,366,98911,300,29211,369,63911,395,241
Allowance for credit losses - loans(125,863)(123,096)(120,865)(123,360)(120,287)(117,613)
Loans held for sale18,96116,62710,83619,23521,47616,262
Investment securities1,401,5111,405,4901,414,4531,392,0781,463,5541,528,336
Total assets14,008,34313,888,13314,028,17214,135,08513,994,54514,129,007
Noninterest-bearing demand deposits2,931,4052,817,9282,914,1613,013,9053,079,8963,228,678
Total deposits11,340,22811,227,20010,996,53811,151,01210,958,92211,075,991
Customer repurchase agreements75,03871,52975,03266,58174,51047,627
Total stockholders' equity1,599,0041,589,3641,588,1421,537,9141,539,0321,536,865
Quarterly average balance sheets:
Commercial investor real estate loans$4,964,406$5,057,334$5,125,028$5,125,459$5,146,632$5,136,204
Commercial owner-occupied real estate loans1,734,1061,746,0421,755,0481,769,7171,773,0391,769,680
Commercial AD&C loans1,133,5061,030,763960,646995,6821,057,2051,082,791
Commercial business loans1,551,7981,508,3361,433,0351,442,5181,441,4891,444,588
Residential mortgage loans1,518,7481,491,2771,451,6141,406,9291,353,8091,307,761
Residential construction loans86,638110,456142,325174,204211,590223,313
Consumer loans417,206417,539419,299421,189423,306424,122
Total loans11,406,40811,361,74711,286,99511,335,69811,407,07011,388,459
Loans held for sale14,4978,14210,13213,71417,4808,324
Investment securities1,538,6241,536,1271,544,1731,589,3421,639,3241,679,593
Interest-earning assets13,292,99513,411,81013,462,58313,444,11713,423,58913,316,165
Total assets13,956,26114,061,93514,090,42314,086,34214,094,65313,949,276
Noninterest-bearing demand deposits2,790,6202,730,2952,958,2543,041,1013,137,9713,480,433
Total deposits11,245,47611,086,14511,089,58711,076,72410,928,03811,049,991
Customer repurchase agreements62,16172,83666,62267,29858,38260,626
Total interest-bearing liabilities9,441,0159,583,0749,418,6669,332,6179,257,6528,806,720
Total stockholders' equity1,579,5821,584,9021,546,3121,538,5531,535,4651,491,929
Financial measures:
Average equity to average assets11.32 %11.27 %10.97 %10.92 %10.89 %10.70 %
Average investment securities to average earning assets11.57 %11.45 %11.47 %11.82 %12.21 %12.61 %
Average loans to average earning assets85.81 %84.71 %83.84 %84.32 %84.98 %85.52 %
Loans to assets81.98 %81.83 %81.03 %79.94 %81.24 %80.65 %
Loans to deposits101.27 %101.22 %103.37 %101.34 %103.75 %102.88 %
Assets under management$6,215,697$6,165,509$5,999,520$5,536,499$5,742,888$5,477,560
Capital measures:
Tier 1 leverage (1)
9.70 %9.56 %9.51 %9.50 %9.42 %9.44 %
Common equity tier 1 capital to risk-weighted assets (1)
11.28 %10.96 %10.90 %10.83 %10.65 %10.53 %
Tier 1 capital to risk-weighted assets (1)
11.28 %10.96 %10.90 %10.83 %10.65 %10.53 %
Total regulatory capital to risk-weighted assets (1)
15.49 %15.05 %14.92 %14.85 %14.60 %14.43 %
Book value per common share$35.45$35.37$35.36$34.26$34.31$34.37
Outstanding common shares
45,109,67144,940,14744,913,56144,895,15844,862,36944,712,497
(1) Estimated ratio at June 30, 2024.



Sandy Spring Bancorp, Inc. and Subsidiaries
LOAN PORTFOLIO QUALITY DETAIL - UNAUDITED
20242023
(Dollars in thousands)June 30,March 31,December 31,September 30,June 30,March 31,
Non-performing assets:
Loans 90 days past due:
Commercial real estate:
Commercial investor real estate$— $— $— $— $— $215 
Commercial owner-occupied real estate— — — — — — 
Commercial AD&C— — — — — — 
Commercial business — 20 20 415 29 3,002 
Residential real estate:
Residential mortgage 338 340 342 — 692 352 
Residential construction— — — — — — 
Consumer— — — — — — 
Total loans 90 days past due
338 360 362 415 721 3,569 
Non-accrual loans:
Commercial real estate:
Commercial investor real estate 55,498 55,579 58,658 20,108 20,381 15,451 
Commercial owner-occupied real estate9,403 4,394 4,640 4,744 4,846 4,949 
Commercial AD&C2,127 556 1,259 1,422 569 — 
Commercial business8,455 7,164 10,051 9,671 9,393 9,443 
Residential real estate:
Residential mortgage 12,228 11,835 12,332 10,766 10,153 8,935 
Residential construction539 542 443 449 — — 
Consumer4,400 4,011 4,102 4,187 3,396 4,900 
Total non-accrual loans92,650 84,081 91,485 51,347 48,738 43,678 
Total non-performing loans92,988 84,441 91,847 51,762 49,459 47,247 
Other real estate owned (OREO)2,700 2,700 — 261 611 645 
Total non-performing assets$95,688 $87,141 $91,847 $52,023 $50,070 $47,892 

For the Quarter Ended,
(Dollars in thousands)
June 30,
2024		March 31,
2024		December 31,
2023		September 30,
2023		June 30,
2023		zMarch 31,
2023
Analysis of non-accrual loan activity:
Balance at beginning of period$84,081$91,485$51,347$48,738$43,678$34,782
Non-accrual balances transferred to OREO
—(2,700)————
Non-accrual balances charged-off—(1,550)—(183)(2,049)(126)
Net payments or draws(1,427)(4,017)(7,619)(1,545)(1,654)(10,212)
Loans placed on non-accrual10,0381,49047,9204,9679,27619,714
Non-accrual loans brought current(42)(627)(163)(630)(513)(480)
Balance at end of period$92,650$84,081$91,485$51,347$48,738$43,678
Analysis of allowance for credit losses - loans:
Balance at beginning of period$123,096$120,865$123,360$120,287$117,613$136,242
Provision/ (credit) for credit losses - loans2,9613,331(2,574)3,1714,454(18,945)
Less loans charged-off, net of recoveries:
Commercial real estate:
    Commercial investor real estate(3)(2)(3)(3)(14)(5)
Commercial owner-occupied real estate(27)(27)(27)(25)(27)(26)
Commercial AD&C(23)(283)————
Commercial business (28)1,550(105)15363(127)
Residential real estate:
Residential mortgage39(6)(6)(4)3521
Residential construction——————
Consumer236(132)621151,423(179)
Net charge-offs/ (recoveries)1941,100(79)981,780(316)
Balance at the end of period$125,863$123,096$120,865$123,360$120,287$117,613
Asset quality ratios:
Non-performing loans to total loans0.81 %0.74 %0.81 %0.46 %0.44 %0.41 %
Non-performing assets to total assets0.68 %0.63 %0.65 %0.37 %0.36 %0.34 %
Allowance for credit losses to loans1.10 %1.08 %1.06 %1.09 %1.06 %1.03 %
Allowance for credit losses to non-performing loans135.35 %145.78 %131.59 %238.32 %243.21 %248.93 %
Annualized net charge-offs/ (recoveries) to average loans0.01 %0.04 %— %— %0.06 %(0.01)%



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

Three Months Ended June 30,
20242023
(Dollars in thousands and tax-equivalent)
Average
Balances
    Interest (1)
Annualized
Average
Yield/Rate
Average
Balances
    Interest (1)
Annualized
Average
Yield/Rate
Assets
Commercial investor real estate loans
$4,964,406 $58,729 4.76 %$5,146,632 $58,784 4.58 %
Commercial owner-occupied real estate loans1,734,106 20,763 4.82 1,773,039 20,575 4.65 
Commercial AD&C loans1,133,506 22,973 8.15 1,057,205 20,663 7.84 
Commercial business loans1,551,798 26,012 6.74 1,441,489 22,715 6.32 
Total commercial loans9,383,816 128,477 5.51 9,418,365 122,737 5.23 
Residential mortgage loans1,518,748 13,940 3.67 1,353,809 11,957 3.53 
Residential construction loans86,638 1,076 5.00 211,590 1,808 3.43 
Consumer loans417,206 8,499 8.19 423,306 8,325 7.89 
Total residential and consumer loans2,022,592 23,515 4.66 1,988,705 22,090 4.45 
Total loans (2)
11,406,408 151,992 5.36 11,407,070 144,827 5.09 
Loans held for sale14,497 309 8.53 17,480 307 7.04 
Taxable securities1,200,676 7,216 2.40 1,289,529 6,848 2.12 
Tax-advantaged securities337,948 2,308 2.73 349,795 2,248 2.57 
Total investment securities (3)
1,538,624 9,524 2.48 1,639,324 9,096 2.22 
Interest-bearing deposits with banks332,932 4,424 5.34 359,093 4,922 5.50 
Federal funds sold534 3 2.73 622 4 2.87 
Total interest-earning assets13,292,995 166,252 5.03 13,423,589 159,156 4.75 
Less: allowance for credit losses - loans
(123,431)(117,587)
Cash and due from banks84,968 96,487 
Premises and equipment, net59,574 70,691 
Other assets642,155 621,473 
Total assets$13,956,261 $14,094,653 
Liabilities and Stockholders' Equity
Interest-bearing demand deposits
$1,498,287 $6,701 1.80 %$1,439,418 $3,606 1.00 %
Regular savings deposits1,644,533 14,376 3.52 609,721 1,897 1.25 
Money market savings deposits2,789,038 25,545 3.68 3,041,652 22,516 2.97 
Time deposits2,522,998 27,787 4.43 2,699,276 23,306 3.46 
Total interest-bearing deposits8,454,856 74,409 3.54 7,790,067 51,325 2.64 
Repurchase agreements62,161 315 2.04 58,382 184 1.26 
Federal funds purchased and Federal Reserve Bank borrowings52,989 737 5.58 320,661 4,007 5.01 
Advances from FHLB500,000 5,420 4.36 718,132 8,216 4.59 
Subordinated debt371,009 3,947 4.25 370,410 3,947 4.26 
Total borrowings986,159 10,419 4.25 1,467,585 16,354 4.47 
Total interest-bearing liabilities9,441,015 84,828 3.61 9,257,652 67,679 2.93 
Noninterest-bearing demand deposits
2,790,620 3,137,971 
Other liabilities145,044 163,565 
Stockholders' equity1,579,582 1,535,465 
Total liabilities and stockholders' equity$13,956,261 $14,094,653 
Tax-equivalent net interest income and spread
$81,424 1.42 %$91,477 1.82 %
Less: tax-equivalent adjustment1,139 1,006 
Net interest income$80,285 $90,471 
Interest income/earning assets
5.03 %4.75 %
Interest expense/earning assets2.57 2.02 
Net interest margin2.46 %2.73 %
(1)Tax-equivalent income has been adjusted using the combined marginal federal and state rate of 25.37% and 25.47% for 2024 and 2023, respectively. The annualized taxable-equivalent adjustments utilized in the above table to compute yields aggregated to $1.1 million and $1.0 million in 2024 and 2023, respectively.
(2)Non-accrual loans are included in the average balances.
(3)Available-for-sale investments are presented at amortized cost.




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

Six Months Ended June 30,
20242023
(Dollars in thousands and tax-equivalent)
Average
Balances
    Interest (1)
Annualized
Average
Yield/Rate
Average
Balances
    Interest (1)
Annualized
Average
Yield/Rate
Assets
Commercial investor real estate loans
$5,010,870 $118,371 4.75 %$5,141,447 $116,585 4.57 %
Commercial owner-occupied real estate loans1,740,074 41,481 4.79 1,771,369 40,173 4.57 
Commercial AD&C loans1,082,134 44,226 8.22 1,069,927 40,502 7.63 
Commercial business loans1,530,067 52,073 6.84 1,443,030 44,915 6.28 
Total commercial loans9,363,145 256,151 5.50 9,425,773 242,175 5.18 
Residential mortgage loans1,505,013 27,745 3.69 1,330,912 23,375 3.51 
Residential construction loans98,547 2,332 4.76 217,419 3,622 3.36 
Consumer loans417,372 17,040 8.21 423,711 15,912 7.57 
Total residential and consumer loans2,020,932 47,117 4.67 1,972,042 42,909 4.37 
Total loans (2)
11,384,077 303,268 5.35 11,397,815 285,084 5.04 
Loans held for sale11,320 437 7.72 12,927 459 7.10 
Taxable securities1,194,561 13,879 2.32 1,293,626 13,856 2.14 
Tax-advantaged securities342,815 4,563 2.66 365,721 4,458 2.44 
Total investment securities (3)
1,537,376 18,442 2.40 1,659,347 18,314 2.21 
Interest-bearing deposits with banks419,197 11,210 5.38 299,606 7,608 5.12 
Federal funds sold434 8 3.79 477 8 3.50 
Total interest-earning assets13,352,404 333,365 5.02 13,370,172 311,473 4.69 
Less: allowance for credit losses - loans
(121,459)(127,189)
Cash and due from banks83,817 95,776 
Premises and equipment, net59,675 69,202 
Other assets634,662 614,403 
Total assets$14,009,099 $14,022,364 
Liabilities and Stockholders' Equity
Interest-bearing demand deposits
$1,487,624 $12,602 1.70 %$1,410,797 $6,236 0.89 %
Regular savings deposits1,544,623 27,256 3.55 557,830 2,260 0.82 
Money market savings deposits2,760,165 50,191 3.66 3,170,010 43,854 2.79 
Time deposits2,612,942 57,726 4.44 2,541,784 39,763 3.15 
Total interest-bearing deposits8,405,354 147,775 3.54 7,680,421 92,113 2.42 
Repurchase agreements67,498 709 2.11 59,498 205 0.69 
Federal funds purchased and Federal Reserve Bank borrowings145,181 3,729 5.16 246,354 6,090 4.99 
Advances from FHLB523,077 11,393 4.38 676,823 15,423 4.60 
Subordinated debt370,935 7,893 4.26 370,334 7,893 4.26 
Total borrowings1,106,691 23,724 4.31 1,353,009 29,611 4.41 
Total interest-bearing liabilities9,512,045 171,499 3.62 9,033,430 121,724 2.72 
Noninterest-bearing demand deposits
2,760,458 3,308,256 
Other liabilities154,354 166,861 
Stockholders' equity1,582,242 1,513,817 
Total liabilities and stockholders' equity$14,009,099 $14,022,364 
Tax-equivalent net interest income and spread
$161,866 1.40 %$189,749 1.97 %
Less: tax-equivalent adjustment2,238 1,976 
Net interest income$159,628 $187,773 
Interest income/earning assets
5.02 %4.69 %
Interest expense/earning assets2.58 1.83 
Net interest margin2.44 %2.86 %
(1)Tax-equivalent income has been adjusted using the combined marginal federal and state rate of 25.37% and 25.47% for 2024 and 2023, respectively. The annualized taxable-equivalent adjustments utilized in the above table to compute yields aggregated to $2.2 million and $2.0 million in 2024 and 2023, respectively.
(2)Non-accrual loans are included in the average balances.
(3)Available-for-sale investments are presented at amortized cost.

Second Quarter 2024 Earnings Presentation July 23, 2024

 
Second Quarter 2024 Results 2Q 2024 Highlights1 • Total core customer deposit growth of $271.2 million (+3%), total deposit growth of $113.0 million (+1%) • Total loans of 11.5 billion (+1%) • Net interest income of $80.3 million (+1%) • Net interest margin of 2.46% (+5 bps) • Pre-tax pre-provision income of $31.8 million; pre-tax income of $30.7 million • Return on average tangible common equity of 8.27%; return on average equity of 5.81% • Common equity tier 1 risk-based capital ratio of ratio of 11.28% • NCOs / average loans (annualized) of 0.01% • Provision for credit losses on loans of $3.0 million • ACL / loans increased to 1.10% • Tangible book value / share of $26.72 2Q 2024 net income of $22.8 million, or $0.51 per common share $22.8 million Net Income Available to Common Equity (+12% vs. 1Q 2024) $31.8 million Pre-Tax Pre-Provision Income (+7% vs. 1Q 2024) $30.7 million Income Before Income Taxes (+13% vs. 1Q 2024) $11.5 billion Total Period End Loans (+1% vs. 1Q 2024) $11.3 billion Total Period End Deposits (+1% vs. 1Q 2024) 1 All figures shown on an end of period basis with comparisons to the first quarter of 2024 unless otherwise noted. 2

 
$0.55 $0.46 $0.58 $0.45 $0.51 $0.05 $0.16 $0.02 $0.04 $0.03 $0.60 $0.62 $0.60 $0.49 $0.54 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Diluted Earnings Per Share Core Earnings per Share Adjustment¹ Profitability Trends Core Earnings Per Share1 Higher net interest income and non-interest income in combination with lower provision for credit losses contributed to growth in earnings Return on Average Assets2 0.70% 0.58% 0.73% 0.58% 0.66% Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Return on Average Common Equity2 6.46% 5.35% 6.70% 5.17% 5.81% Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 31 Non-GAAP financial measure. See reconciliation to most directly comparable GAAP measure in “Appendix – Reconciliation of non-GAAP Measures” 2 Annualized metric

 
Noninterest -bearing demand 26% Interest- bearing demand 13% Money Market 25% Savings 15% Brokered CDs 5% Customer CDs 16% $3,080 $3,014 $2,914 $2,818 $2,931 $1,413 $1,456 $1,464 $1,528 $1,434 $2,918 $2,741 $2,629 $2,680 $2,848 $732 $1,009 $1,275 $1,579 $1,678 $1,210 $1,054 $801 $751 $596 $1,606 $1,877 $1,914 $1,871 $1,853 $10,959 $11,151 $10,997 $11,227 $11,340 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Noninterest-bearing demand Interest-bearing demand Money Market Savings Brokered CDs Customer CDs Quarterly Deposit Trends Quarterly Deposits Total deposits increased $113.0 million or 1% to $11.3 billion. Noninterest-bearing deposits increased 4% ($ in millions) Deposit Composition ▪ The Company reduced its brokered time deposits by $154.7 million during the current quarter. ▪ Total deposits, excluding brokered deposits, increased by $271.2 million or 3% quarter-over-quarter. 4

 
Insured vs Uninsured Deposits Available unused sources of liquidity are 154% of uninsured deposits Insured $7.2 B 64% Uninsured $4.1 B 36% ▪ Available unused sources of liquidity is $6.3 billion or 154% of uninsured deposits ▪ 38% of uninsured depositors have a lending relationship with the Company. ▪ 80% of uninsured deposits are Business accounts; 15% of uninsured deposits are Trust accounts ▪ Liquidity stress testing is performed quarterly and includes both systemic and idiosyncratic scenarios Deposit Breakdown1 Uninsured Deposits by Type1 $4.1 B $6.3 B Uninsured Deposits Available Unused Sources of Liquidity Source: Company Documents 1 As of June 30, 2024 Retail $0.8 B 20% Commercial $3.3 B 80% $4.1 bn 5

 
Deposit Overview 57% of core deposit balances are in low-cost transaction and savings accounts ▪ Core deposits represent 94% of total deposits ▪ Average length of relationship is 9.8 years ▪ No commercial client > 2% of total deposits ▪ Well-diversified portfolio; no significant concentration in one industry or with any single client Core Deposit Mix1 Commercial Deposit Portfolio by NAICS2 Non- interest Bearing Checking 27%Money Market 26% Interest Checking 14% Savings 16% Time Deposits 17% $10.7 bn $4.7 bn Source: Company Documents 1 As of June 30, 2024 2 Other Misc includes churches, education, health services education, wholesale and nonresidential lessors Other 25% Real Estate 16% Services 13% Trade Contractors 6% Professional Services 6% Building Contractors 4% Org. Services 4% Engineering & Mgmt 5% Insurance 5% Other Misc. 16% 6

 
Investor Real Estate 43% Owner- occupied Real Estate 15% AD&C 10% C&I 14% Residential mortgage 13% Residential construction 1% Consumer 4% $5,131 $5,138 $5,104 $4,998 $4,933 $1,770 $1,760 $1,755 $1,741 $1,748 $1,046 $939 $989 $1,090 $1,184 $1,424 $1,455 $1,505 $1,509 $1,602 $1,386 $1,432 $1,475 $1,512 $1,522 $191 $160 $121 $98 $78$422 $416 $418 $416 $417 $11,370 $11,300 $11,367 $11,364 $11,484 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Investor Real Estate Owner-occupied Real Estate AD&C C&I Residential mortgage Residential construction Consumer Quarterly Loan Trends Quarterly Loans Total loans increased $119.6 million driven by growth of AD&C and Commercial Business lines ($ in millions) Loan Composition 7

 
Construction 15% Other Services 10% Educational Services 10% Prof., Scientific & Tech 10% R/E Rental & Leasing 8% Retail 8% Health Care 7% Arts & Entertainment 6% Wholesale 6% Other Misc. 20% Retail 29% Apartment 15% Office 13% Residential 12% Warehouse Space 7% Hotel 6% Other Misc 18% Commercial Loans by Type CRE by Collateral Type Office exposure is $789 million or 13% of CRE, down 6% over the previous quarter Business Loans & Owner-Occupied R/E $6.1 bn $3.3 bn 8

 
CRE Concentrations Washington DC Conservative underwriting and strategic portfolio management to optimize performance of the CRE portfolio Baltimore City Multifamily 37% Retail 16% Office 10% Condo 7% Townhouse 5% Mixed Use 5% Hotel 4% Warehouse 4% Single Family 3% Other Misc 9% $953 mm Multifamily 20% Townhouse 16% Office 15% Retail 14% Mixed Use 13% Industrial 7% Warehouse 5% Single Family 3% Automotive 2% Other Misc 5% $381 mm 9

 
$90,471 $85,081 $81,696 $79,343 $80,285 2.73% 2.55% 2.45% 2.41% 2.46% $72,000 $74,000 $76,000 $78,000 $80,000 $82,000 $84,000 $86,000 $88,000 $90,000 $92,000 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Net Interest Income Net interest Margin Net Interest Income and Net Interest Margin Trends Net Interest Income and Margin ($ in thousands) Comments ▪ The net interest margin was 2.46% for the current quarter compared to 2.41% for Q1 2024. ▪ Overall, the net interest margin grew during the quarter due to the rate paid on interest-bearing liabilities decreasing three basis points, while the yield on interest-earning assets rose two basis points ▪ Higher rates paid on interest-bearing liabilities, driven by higher market rates, competition for deposits, and customer movement of excess funds out of noninterest-bearing accounts outpaced the increase in yield on interest-earning assets compared to prior year. ▪ Compared to the prior year quarter, the yield on interest earning assets increased 28 bps and the rate paid on interest bearing liabilities rose 68 bps resulting in margin compression of 27 basis points. 10

 
Yield and Cost Trends Selected Yields (%) Asset & Liability Yield / Rate Trends Asset yields continue to reprice at higher rates while interest-bearing liabilities yields decreased QoQ 4.75% 4.83% 4.92% 5.01% 5.03% 2.93% 3.29% 3.54% 3.64% 3.61% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Total interest-earning assets Total interest-bearing liabilities 4.00% 4.50% 5.00% 5.50% Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 P e rc e n t Commercial investor real estate loans Total commercial loans Total residential and consumer loans Total loans Total interest-earning assets 11

 
Service Charges on Deposits 15% Mortgage Banking 8% Wealth Management 54% BOLI Income 9% Bank Card Revenue 2% Other Income 12% Non-interest Income Revenue Composition Stronger market conditions and client acquisition drive higher wealth management fees $19.6 mm ▪ Wealth management income increased compared to the prior quarter due to a 1% increase in assets under management and the overall favorable market performance. ▪ Higher income from mortgage banking activities and BOLI mortality- related income, due to receipt of death proceeds. 12 ($ in thousands) Q2 2024 Q1 2024 Q2 2023 Service Charges on Deposits 2,939 122 333 Mortgage Banking 1,621 247 (196) Wealth Management 10,455 497 1,424 BOLI Income 1,816 656 565 Bank Card Revenue 445 32 (2) Other Income 2,311 (334) 287 Total 19,587$ 1,220$ 2,411$ $ Change vs

 
Non-interest Expense Non-interest Expense Trends Increase due to higher personnel and marketing expense; offset by lower general operating expense ($ in thousands) Non-interest Expense Detail Fully Tax-Equivalent Efficiency Ratio1 Source: Company documents 1) Non-GAAP financial measure; see reconciliation to most directly comparable GAAP measure in “Appendix – Reconciliation of non-GAAP Financial Measures” 64.2% 70.7% 68.3% 69.6% 68.2% 60.7% 60.9% 66.2% 66.7% 65.3% Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Efficiency Ratio (GAAP) Efficiency Ratio (Non-GAAP) $40,931 $36,696 $35,482 $36,698 $37,821 $12,667 $11,870 $14,487 $14,546 $13,378 $8,524 $8,420 $8,545 $8,779 $8,673 $2,853 $2,819 $3,000 $3,103 $3,286 $4,161 $4,509 $5,628 $4,880 $4,946 $8,157 $69,136 $72,471 $67,142 $68,006 $68,104 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Personal Expense Other expenses Occupancy & Equipment Expense Outside data services Professional Expense Pension Settlement Expense 13 ($ in thousands) Q2 2024 Q1 2024 Q2 2023 Salaries and employee benefits 37,821 1,123 (3,110)$ Occupancy expense of premises 4,805 (11) 41 Equipment expenses 3,868 (95) 108 Marketing 1,288 546 (301) Outside data services 3,286 183 433 FDIC insurance 2,951 40 576 Amortization of intangible assets 2,135 66 866 Professional fees and services 4,946 66 785 Other expenses 7,004 (1,820) (430) Total 68,104$ 98$ (1,032)$ $ Change vs

 
Current Expected Credit Losses - Loans ACL increased due to loan portfolio growth coupled with higher individual reserves ACL by Loan TypeACL / Total Loans $120,287 $123,360 $120,865 $123,096 $125,863 1.06% 1.09% 1.06% 1.08% 1.10% $117,000 $118,000 $119,000 $120,000 $121,000 $122,000 $123,000 $124,000 $125,000 $126,000 $127,000 0.30% 0.50% 0.70% 0.90% 1.10% 1.30% 1.50% 1.70% Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Total ACL ACL/Total Loans ($ in thousands) ▪ ACL of $125.9 million or 1.10% of outstanding loans equals 135% of non-performing loans at June 30, 2024 ▪ The increase in the provision during the current quarter was a product of higher individual reserves on collateral-dependent loans along with overall growth of the loan portfolio, partially offset by lower qualitative adjustments due to reduction of the commercial investor real estate segment. In addition, during the current quarter, the reserve for unfunded commitments decreased by $1.9 million as a result of higher utilization rates on lines of credit. ▪ Utilized June 2024 Moody’s baseline forecast in quantitative model 14 ($ thousands) 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 Investor Real Estate 61,087$ 63,192$ 61,439$ 64,299$ 63,898$ Owner-Occupied Real Estate 9,230 8,961 7,536 6,907 6,877 Commercial AD&C 10,200 9,100 8,287 10,845 12,436 Commercial Business 27,914 30,720 31,932 29,037 30,200 Total Commercial 108,431 111,973 109,194 111,088 113,411 Residential Mortgage 9,161 8,499 8,890 9,091 9,488 Residential Construction 850 672 729 423 362 Consumer 1,845 2,216 2,052 2,494 2,602 Total Residential and Consumer 11,856 11,387 11,671 12,008 12,452 Allowance for Credit Losses 120,287$ 123,360$ 120,865$ 123,096$ 125,863$

 
Strong Credit Culture and Performance Increase this quarter in non-performing loans related to several loans within the owner-occupied commercial real estate segment 0.36% 0.37% 0.65% 0.63% 0.68% Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Non-performing Assets / Total Assets 0.06% --% --% 0.04% 0.01% Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Ann. Net Charge-offs (Recoveries) / Average Loans Non-performing Loans / Loans Reserves / Loans HFI 0.44% 0.46% 0.81% 0.74% 0.81% Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 1.06% 1.09% 1.06% 1.08% 1.10% Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 15

 
Retail Space CRE Overview Retail Space exposure down $3 million or 0.2% compared to 1Q 2024 $1,827 $1,815 $1,802 $1,793 $1,789 0.00% 0.05% 0.10% 0.15% 0.20% 0.25% 0.30% 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 $1,770,000 $1,780,000 $1,790,000 $1,800,000 $1,810,000 $1,820,000 $1,830,000 Balance Non-Performing % Delinquency % (30-89 Days) Retail Space Trends Retail Space by Geography ($mm) $45 $49 $68 $26 $136 $951 $440 $74 Alexandria, VA Baltimore, MD Rockville, MD Silver Spring, MD Washington, DC Other MD Other VA Out of Territory $ m ill io n s 16 Total CRE Balance $1,789,231 # of Loans 491 # of Clients 281 Fixed Rate $1,486,004 83.1% Floating Rate* $44,569 2.5% Adjustable Rate $258,658 14.5% Weighted Avg. Int. Rate 4.43% Investment $1,720,136 96.1% Construction $69,094 3.9% C & I Loans (not in CRE) $160,667 Maturing in 12 Months $193,536 10.8% Maturing in 12-24 Months $112,576 6.3% Rate Change in 12 Months $153,228 8.6% Rate Change in 12-24 Months $33,462 1.9% Accruing Delinquent Loans (#) 2 0.4% Accruing Delinquent Loans ($) $1,146 0.1% Non-Performing Loans (#) 1 0.2% Non-Performing Loans ($) $554 0.0% Criticized Loans (#) 11 2.2% Criticized Loans ($) $18,781 1.0% Non-Recourse (#) 77 15.7% Non-Recourse ($) $786,991 44.0% Maryland $1,094,470 61.2% Virginia $485,415 27.1% DC $135,597 7.6% Out of Territory $73,241 4.1% *Floating rate loans change when the index changes Retail Space ($ in thousands)

 
Multifamily CRE Overview Multi-family exposure up $70 million, or 7% compared to 1Q 2024 Multi-family Trends Multi-family by Geography $954 $965 $885 $989 $1,060 0.00% 1.00% 2.00% 3.00% 4.00% 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 $750,000 $800,000 $850,000 $900,000 $950,000 $1,000,000 $1,050,000 $1,100,000 Balance Non-Performing % Delinquency % (30-89 Days) $6 $153 $10 $357 $238 $128 $154 Alexandria, VA Baltimore, MD Silver Spring, MD Washington, DC Other MD Other VA Out of Territory $ m ill io n s ($ in thousands) 17 Total CRE Balance $1,059,856 # of Loans 252 # of Clients 164 Apartment Building $961,799 90.7% Mixed Use (res. & comm.) $44,766 4.2% Other $53,291 5.0% Fixed Rate $596,064 56.2% Floating Rate* $118,605 11.2% Adjustable Rate $345,187 32.6% Weighted Avg. Int. Rate 5.64% Investment $786,893 74.2% Construction $241,573 22.8% C & I Loans (not in CRE) $2,823 Maturing in 12 Months $246,068 23.2% Maturing in 12-24 Months $109,618 10.3% Rate Change in 12 Months $294,513 27.8% Rate Change in 12-24 Months $24,287 2.3% Accruing Delinquent Loans (#) 1 0.4% Accruing Delinquent Loans ($) $1,434 0.1% Non-Performing Loans (#) 5 2.0% Non-Performing Loans ($) $31,249 2.9% Criticized Loans (#) 20 7.9% Criticized Loans ($) $115,225 10.9% Non-Recourse (#) 19 7.5% Non-Recourse ($) $238,778 22.5% Maryland $400,222 37.8% Virginia $133,659 12.6% DC $371,526 35.1% Out of Territory $153,877 14.5% *Floating rate loans change when the index changes Multi-Family

 
Office CRE Overview Office exposure down $53 million, or 6% compared to 1Q 2024 Office Trends Office by Geography $874 $863 $843 $842 $788 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 $740,000 $760,000 $780,000 $800,000 $820,000 $840,000 $860,000 $880,000 $900,000 Balance Non-Performing % Delinquency % (30-89 Days) $40 $48 $18 $52 $33 $79 $302 $189 $27 Alexandria, VA Baltimore, MD Reston, VA Rockville, MD Silver Spring, MD Washington, DC Other MD Other VA Out of Territory $ m ill io n s ($ in thousands) 18 Total CRE Balance $788,257 # of Loans 282 # of Clients 219 Office Building $747,522 94.8% Office Condo $40,735 5.2% Class A $177,251 28.7% Class B $399,147 64.6% Class C $41,919 6.8% N/A (loans under $5MM) $169,940 N/A Fixed Rate $595,202 75.5% Floating Rate* $29,424 3.7% Adjustable Rate $163,630 20.8% Weighted Avg. Int. Rate 5.00% Investment $653,192 82.9% Construction $135,065 17.1% C & I Loans (not in CRE) $336,559 Maturing in 12 Months $129,277 16.4% Maturing in 12-24 Months $67,361 8.5% Rate Change in 12 Months $100,524 12.8% Rate Change in 12-24 Months $6,726 0.9% Accruing Delinquent Loans (#) 2 0.7% Accruing Delinquent Loans ($) $198 0.0% Non-Performing Loans (#) 0 0.0% Non-Performing Loans ($) $0 0.0% Criticized Loans (#) 4 1.4% Criticized Loans ($) $22,673 2.9% Non-Recourse (#) 17 6.0% Non-Recourse ($) $156,391 19.8% Maryland $435,317 55.2% Virginia $246,718 31.3% DC $79,325 10.1% Out of Territory $11,971 1.5% *Floating rate loans change when the index changes Office Space

 
Flex and Warehouse CRE Overview Flex and Warehouse down $7 million, or 1%, compared to 1Q 2024 Flex and Warehouse Trends Flex and Warehouse by Geography $612 $577 $583 $574 $567 0.00% 0.05% 0.10% 0.15% 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 $540,000 $550,000 $560,000 $570,000 $580,000 $590,000 $600,000 $610,000 $620,000 Balance Non-Performing % Delinquency % (30-89 Days) $28 $58 $38 $229 $182 $33 Baltimore, MD Rockville, MD Washington, DC Other MD Other VA Out of Territory $ m ill io n s ($ in thousands) 19 Total CRE Balance $567,495 # of Loans 168 # of Clients 122 Flex Space $157,831 27.8% Warehouse Space $409,665 72.2% Fixed Rate $415,218 73.2% Floating Rate* $46,053 8.1% Adjustable Rate $106,224 18.7% Weighted Avg. Int. Rate 5.24% Investment $428,070 75.4% Construction $139,425 24.6% C & I Loans (not in CRE) $317,598 Maturing in 12 Months $72,478 12.8% Maturing in 12-24 Months $62,711 11.1% Rate Change in 12 Months $80,320 14.2% Rate Change in 12-24 Months $6,802 1.2% Accruing Delinquent Loans (#) 0 0.0% Accruing Delinquent Loans ($) $0 0.0% Non-Performing Loans (#) 0 0.0% Non-Performing Loans ($) $0 0.0% Criticized Loans (#) 2 1.2% Criticized Loans ($) $3,141 0.6% Non-Recourse (#) 16 9.5% Non-Recourse ($) $129,628 22.8% Maryland $314,784 55.5% Virginia $182,152 32.1% DC $37,581 6.6% Out of Territory $32,978 5.8% *Floating rate loans change when the index changes Flex & Warehouse Space

 
Hotel CRE Overview Hotel exposure down $2 million, or 0.5% compared to 1Q 2024 Hotel Trends Hotel by Geography $391 $378 $375 $374 $372 0.00% 20.00% 40.00% 60.00% 80.00% 100.00% 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 $360,000 $365,000 $370,000 $375,000 $380,000 $385,000 $390,000 $395,000 Balance Non-Performing % Delinquency % (30-89 Days) $38 $13 $38 $197 $80 $7 Alexandria, VA Baltimore, MD Washington, DC Other MD Other VA Out of Territory $ m ill io n s ($ in thousands) 20 Total CRE Balance $371,913 # of Loans 64 # of Clients 33 Fixed Rate $273,458 73.5% Floating Rate* $16,528 4.4% Adjustable Rate $81,927 22.0% Weighted Avg. Int. Rate 5.08% Investment $363,427 97.7% Construction $8,486 2.3% C & I Loans (not in CRE) $0 Maturing in 12 Months $85,987 23.1% Maturing in 12-24 Months $68,765 18.5% Rate Change in 12 Months $32,862 8.8% Rate Change in 12-24 Months $21,108 5.7% Accruing Delinquent Loans (#) 0 0.0% Accruing Delinquent Loans ($) $0 0.0% Non-Performing Loans (#) 0 0.0% Non-Performing Loans ($) $0 0.0% Criticized Loans (#) 3 4.7% Criticized Loans ($) $7,480 2.0% Non-Recourse (#) 1 1.6% Non-Recourse ($) $18,401 4.9% Maryland $210,259 56.5% Virginia $117,178 31.5% DC $37,919 10.2% Out of Territory $6,557 1.8% *Floating rate loans change when the index changes Hotel

 
Capital Ratios 2Q 2024 Capital Ratios Comments ▪ Quarterly dividend currently $0.34 per share. Annualized dividend yield 5.58%1 ▪ 69% of 2Q 2024 earnings returned to shareholders through common dividends. All capital ratios are in excess of “well-capitalized” regulatory risk-based capital thresholds Tangible Book Value Per Share2 $25.82 $25.80 $26.64 $26.61 $26.72 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 1 Based on June 28, 2024 SASR closing share price of $24.36 2 Non-GAAP financial measure; see reconciliation to most directly comparable GAAP measure in “Appendix – Reconciliation of non-GAAP Financial Measures” 9.42% 10.65% 10.65% 14.60% 9.70% 11.28% 11.28% 15.49% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% Tier 1 Leverage Ratio Tier 1 Common Equity Ratio Tier 1 Capital Ratio Total Capital Ratio 2Q 2023 2Q 2024 21

 
2024 Management Outlook Outlook for full-year 2024 Balance Sheet Loan Growth Deposit Growth(1) Net Interest Margin Low/Mid-single digits Mid/High-single digits Financial Targets Efficiency Ratio Fee Income Growth Expenses Mid 60% area High-single digits $68MM - $70MM per quarter Operating Assumptions CET1 TCE / TA Tax Rate Low 11% area High 8% to low 9% area 24% - 26% area ▪ The Federal Reserve Bank cuts the fed funds rate by 25 bps one time in December 2024 ▪ Increased likelihood of soft landing with relatively stable economy in the Washington DC / Baltimore CSA ▪ Net interest margin stabilized in 2Q 2024 with potential modest expansion of 2-4 bps per quarter anticipated through year end 2024 subject to interest rate, loan growth, and funding trends Key Economic and Operating Assumptions Credit ACL / Loans: 1.10% area NCO / Loans: 5- 15 basis points 2.45% - 2.55% 22 1 Excludes brokered deposits

 
Appendix 23

 
Non-GAAP Reconciliation This presentation contains financial information and performance measures determined by methods other than in accordance with generally accepted accounting principles in the United States (“GAAP”). Sandy Spring Bancorp’s management believes that the supplemental non-GAAP information provides a better comparison of period-to-period operating performance. Additionally, Sandy Spring Bancorp believes this information is utilized by regulators and market analysts to evaluate a company’s financial condition and, therefore, such information is useful to investors. Non-GAAP measures used in this presentation consist of the following: • efficiency ratio • tangible common equity • core earnings Efficiency Ratio. Management views the GAAP efficiency ratio as an important financial measure of expense performance and cost management. The ratio expresses the level of non-interest expenses as a percentage of total revenue (net interest income plus total non-interest income). Lower ratios indicate improved productivity. In general, the efficiency ratio is non-interest expenses as a percentage of net interest income plus non-interest income. Noninterest expenses used in the calculation of the non-GAAP efficiency ratio excludes intangible asset amortization and non-recurring or extraordinary items. Non-interest income is adjusted to exclude securities gains and losses and nonrecurring or extraordinary items, and net interest income is adjusted to include tax-equivalent income. The measure is different from the GAAP efficiency ratio, which also is presented in this document. The GAAP measure is calculated using non-interest expense and income amounts as shown on the face of the Consolidated Statements of Income. The GAAP and non-GAAP efficiency ratios are reconciled and provided in the following table. Tangible Common Equity. Tangible equity, tangible assets and tangible book value per share are non-GAAP financial measures calculated using GAAP amounts. Tangible common equity and tangible assets exclude the balances of goodwill and other intangible assets from stockholder’s equity and total assets, respectively. Management believes that this non-GAAP financial measure provides information to investors that may be useful in understanding our financial condition. Because not all companies use the same calculation of tangible equity and tangible assets, this presentation may not be comparable to other similarly titled measures calculated by other companies. Core Earnings. Core earnings is a non-GAAP financial measure calculated using GAAP amounts. Core earnings reflect net income for the period exclusive of merger, acquisition and disposal expense, amortization of intangible assets, and other nonrecurring or extraordinary items, in each case net of tax. Management believes that this non-GAAP financial measure provides helpful information to investors in understanding the Company’s core operating earnings and provides a better comparison of period-to-period operating performance of the Company. 24

 
Reconciliation of Non-GAAP Financial Measures - QTD 25 (Dollars in thousands) 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 Pre-tax pre-provision income (Non-GAAP) . Pre-tax pre-provision income: $ 24,745 $ 20,746 $ 26,100 $ 20,372 $ 22,807 Net income Plus/(less) non-GAAP adjustments: Income taxes 8,711 6,890 8,459 6,944 7,941 Provision/(credit) for credit losses 5,055 2,365 (3,445) 2,388 1,020 Pre-tax pre-provision net income $ 38,511 $ 30,001 $ 31,114 $ 29,704 $ 31,768 Efficiency ratio - GAAP basis . Non-interest expenses $ 69,136 $ 72,471 $ 67,142 $ 68,006 $ 68,104 Net interest income plus non-interest income 107,647 102,472 98,256 97,710 99,872 Efficiency ratio - GAAP basis 64.22 % 70.72 % 68.33 % 69.60 % 68.19 % Efficiency ratio - Non-GAAP basis Non-interest expenses $ 69,136 $ 72,471 $ 67,142 $ 68,006 $ 68,104 Less non-GAAP adjustments: Amortization of intangible assets 1,269 1,245 1,403 2,069 2,135 Severance expense 1,939 — — — — Pension settlement expense — 8,157 — — — Non-interest expenses - as adjusted $ 65,928 $ 63,069 $ 65,739 $ 65,937 $ 65,969 Net interest income plus non-interest income $ 107,647 $ 102,472 $ 98,256 $ 97,710 $ 99,872 Plus non-GAAP adjustment: Tax-equivalent income 1,006 1,068 1,113 1,099 1,139 Less non-GAAP adjustments: Investment securities gains/(losses) — — — — — Net interest income plus non-interest income - as adjusted $ 108,653 $ 103,540 $ 99,369 $ 98,809 $ 101,011 Efficiency ratio - Non-GAAP basis 60.68 % 60.91 % 66.16 % 66.73 % 65.31 %

 
Tangible Common Equity-QTD 26 (Dollars in thousands except per share data) 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 Tangible common equity ratio: Total stockholders' equity $ 1,539,032 $ 1,537,914 $ 1,588,142 $ 1,589,364 $ 1,599,004 Goodwill (363,436) (363,436) (363,436) (363,436) (363,436) Other intangible assets, net (17,280) (16,035) (28,301) (29,864) (30,087) Tangible common equity $ 1,158,316 $ 1,158,443 $ 1,196,405 $ 1,196,064 $ 1,205,481 Total assets $ 13,994,545 $ 14,135,085 $ 14,028,172 $ 13,888,133 $ 14,008,343 Goodwill (363,436) (363,436) (363,436) (363,436) (363,436) Other intangible assets, net (17,280) (16,035) (28,301) (29,864) (30,087) Tangible assets $ 13,613,829 $ 13,755,614 $ 13,636,435 $ 13,494,833 $ 13,614,820 Common shares outstanding 44,862,369 44,895,158 44,913,561 44,940,147 45,109,671 Tangible common equity ratio 8.51 % 8.42 % 8.77 % 8.86 % 8.85 % Book value per common share $ 34.31 $ 34.26 $ 35.36 $ 35.37 $ 35.45 Tangible book value per common share $ 25.82 $ 25.80 $ 26.64 $ 26.61 $ 26.72

 
Core Earnings - QTD 27 (Dollars in thousands except per share data) 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 Core Earnings: Net income(GAAP) $ 24,745 $ 20,746 $ 26,100 $ 20,372 $ 22,807 Plus/(less) non-GAAP adjustments (net of tax): Amortization of intangible assets 946 932 1,047 1,544 1,593 Severance Expense 1,445 — — — — Pension settlement expense — 6,088 — — — Core earnings (non-GAAP) $ 27,136 $ 27,766 $ 27,147 $ 21,916 $ 24,400 Core return on average assets (non-GAAP) Average assets (GAAP) $14,094,653 $14,086,342 $14,090,423 $14,061,935 $13,956,261 Return on average assets (GAAP) 0.70 % 0.58 % 0.73 % 0.58 % 0.66 % Core return on average assets (non-GAAP) 0.77 % 0.78 % 0.76 % 0.63 % 0.70 % Weighted average common shares outstanding - diluted (GAAP) 44,888,759 44,960,455 45,009,574 45,086,471 45,145,214 Earning per diluted common share (GAAP) $ 0.55 $ 0.46 $ 0.58 $ 0.45 $ 0.51 Core earnings per diluted common share (non-GAAP) $ 0.60 $ 0.62 $ 0.60 $ 0.49 $ 0.54

 

 
v3.24.2
Cover
Jul. 23, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Jul. 23, 2024
Entity Registrant Name SANDY SPRING BANCORP, INC.
Entity Incorporation State Country Code MD
Entity File Number 000-19065
Entity Tax Identification Number 52-1532952
Entity Address Address Line1 17801 Georgia Avenue
Entity Address City Or Town Olney
Entity Address State Or Province MD
Entity Address Postal Zip Code 20832
City Area Code 301
Local Phone Number 774-6400
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Security 12b Title Common Stock, par value $1.00 per share
Trading Symbol SASR
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Amendment Flag false
Entity Central Index Key 0000824410
Sandy Spring Bancorp (NASDAQ:SASR)
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