sasr-20240423
false000082441000008244102024-04-232024-04-23

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): April 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 April 23, 2024, Sandy Spring Bancorp, Inc. (the “Company”) issued a news release announcing its results of operations and financial condition for the quarter ended March 31, 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 April 23, 2024
 
Supplemental Information dated April 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: April 23, 2024
By:/s/ Daniel J. Schrider
  Daniel J. Schrider
  President and Chief Executive Officer


Document
Exhibit 99.1
http://api.rkd.refinitiv.com/api/FilingsRetrieval3/.78632899.0000824410-24-000014tm2033877d1_ex99-1img01.jpg.ashx
NEWS RELEASE

FOR IMMEDIATE RELEASE

SANDY SPRING BANCORP REPORTS FIRST QUARTER EARNINGS OF $20.4 MILLION

OLNEY, MARYLAND, April 23, 2024 — Sandy Spring Bancorp, Inc. (Nasdaq-SASR), the parent company of Sandy Spring Bank, reported net income of $20.4 million ($0.45 per diluted common share) for the quarter ended March 31, 2024, compared to net income of $26.1 million ($0.58 per diluted common share) for the fourth quarter of 2023 and $51.3 million ($1.14 per diluted common share) for the first quarter of 2023.

Current quarter's core earnings were $21.9 million ($0.49 per diluted common share), compared to $27.1 million ($0.60 per diluted common share) for the quarter ended December 31, 2023 and $52.3 million ($1.16 per diluted common share) for the quarter ended March 31, 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 decline of net income and core earnings as compared to the linked quarter was driven by an increase to the provision for credit losses coupled with lower net interest income and higher non-interest expense, partially offset by higher non-interest income. The total provision for credit losses was $2.4 million for the first quarter of 2024 compared to a credit of $3.4 million for the previous quarter and a credit of $21.5 million for the first quarter of 2023.

“We continued to gain momentum this quarter in several critical areas, including growing core funding and maintaining a strong liquidity position. We also continued to uphold our credit quality through prudent risk management and our hands-on approach to working with our clients,” said Daniel J. Schrider, Chair, President & CEO of Sandy Spring Bank.

“As we move through the year, we remain focused on expanding client relationships through enhanced products, services and digital solutions and by delivering local and remarkable client service,” Schrider added.

First Quarter Highlights

•Total assets at March 31, 2024 decreased by 1% to $13.9 billion compared to $14.0 billion at December 31, 2023.

•Total loans remained level at $11.4 billion as of March 31, 2024 compared to December 31, 2023. During the current quarter, we reduced our concentration in the investor commercial real estate segment by $106.5 million, while the AD&C portfolio increased $101.3 million. Total commercial business loans and lines and mortgage and consumer loan portfolios remained relatively unchanged during this period.

•Deposits increased $230.7 million or 2% to $11.2 billion at March 31, 2024 compared to $11.0 billion at December 31, 2023, as interest-bearing deposits increased $326.9 million, while noninterest-bearing deposits declined $96.2 million. Strong growth in the interest-bearing deposit categories was mainly experienced within savings accounts, which grew by $303.9 million compared to the linked quarter. Interest checking and money market accounts increased $64.5 million and $51.6 million, respectively, while time deposits decreased $93.0 million. The decline within noninterest-bearing deposit categories was driven by lower balances in commercial and small business checking accounts.

•The ratio of non-performing loans to total loans was 0.74% at March 31, 2024 compared to 0.81% at December 31, 2023 and 0.41% at March 31, 2023. The current quarter's reduction in non-performing loans was related to full payoffs of several non-accrual loans in combination with the movement of one investment commercial real estate loan from a non-accrual category to the other real estate owned. Net charge-offs for the current quarter totaled $1.1 million.

•Total borrowings declined $353.4 million at March 31, 2024 compared to the previous quarter, due to the full payoff of $300.0 million in outstanding borrowings through the Federal Reserve Bank's Bank Term Funding Program and a $50.0 million reduction in FHLB advances.

•Net interest income for the first quarter of 2024 declined $2.4 million or 3% compared to the previous quarter and $18.0 million or 18% compared to the first quarter of 2023. Compared to the previous quarter, the $0.4 million


growth in interest income for the current quarter was more than offset by the $2.7 million increase in interest expense.

•The net interest margin was 2.41% for the first quarter of 2024 compared to 2.45% for the fourth quarter of 2023 and 2.99% for the first quarter of 2023. Overall, the rate of net interest margin contraction slowed down during the current quarter and we experienced a margin increase during the last month of the current quarter. Compared to the linked quarter, the rate paid on interest-bearing liabilities rose 10 basis points, while the yield on interest-earning assets increased 9 basis points.

•Provision for credit losses directly attributable to the funded loan portfolio was $3.3 million for the current quarter compared to a credit of $2.6 million in the previous quarter and a credit of $18.9 million in the prior year quarter. The increase in the provision during the current quarter was attributable to the adjustments of risk factors applied to specific industries within the commercial real estate segment, partially offset by lower individual reserves, the result of several payoffs of non-accrual loans, and the reduced probability of an economic recession. In addition, during the current quarter, the reserve for unfunded commitments decreased by $0.9 million, a result of higher utilization rates on lines of credit.

•Non-interest income for the first quarter of 2024 increased by 11% or $1.8 million compared to the linked quarter and grew by 15% or $2.4 million compared to the prior year quarter. The quarter-over-quarter increase was mainly driven by higher wealth management income, due to a 3% increase in assets under management and the overall favorable market performance, along with higher income from mortgage banking activities and other income, generated by increased credit-related fees.

•Non-interest expense for the first quarter of 2024 increased $0.9 million or 1% compared to the fourth quarter of 2023 and $1.7 million or 3% compared to the prior year quarter. The quarterly increase in non-interest expense was primarily due to higher salaries and benefits as more employees were subject to employer-related payroll taxes during the current quarter as compared to the linked quarter, partially offset by lower professional fees and lower marketing expense.

•Return on average assets (“ROA”) for the quarter ended March 31, 2024 was 0.58% and return on average tangible common equity (“ROTCE”) was 7.39% compared to 0.73% and 9.26%, respectively, for the fourth quarter of 2023 and 1.49% and 19.10%, respectively, for the first quarter of 2023. On a non-GAAP basis, the current quarter's core ROA was 0.63% and core ROTCE was 7.39% compared to 0.76% and 9.26%, respectively, for the previous quarter and 1.52% and 19.11%, respectively, for the first quarter of 2023.

•The GAAP efficiency ratio was 69.60% for the first quarter of 2024, compared to 68.33% for the fourth quarter of 2023 and 58.55% for the first quarter of 2023. The non-GAAP efficiency ratio was 66.73% for the first quarter of 2024 compared to 66.16% for the fourth quarter of 2023 and 56.87% for the prior year quarter. The increase in non-GAAP efficiency ratio (reflecting a decrease in efficiency) in the current quarter compared to the previous quarter and the first quarter of the prior year was the result of declines in net revenue from the prior periods coupled with the growth in non-interest expense.

Balance Sheet and Credit Quality

Total assets were $13.9 billion at March 31, 2024, as compared to $14.0 billion at December 31, 2023. At March 31, 2024 total loans were stable at $11.4 billion compared to the previous quarter. Investment commercial real estate loans decreased $106.5 million or 2% quarter-over-quarter, while the AD&C portfolio grew $101.3 million or 10% during this period. Commercial business loans and total mortgage and consumer loan portfolios remained relatively unchanged. Overall, the loan portfolio mix remained consistent compared to the previous quarter.

Deposits increased $230.7 million or 2% to $11.2 billion at March 31, 2024 compared to $11.0 billion at December 31, 2023. During this period interest-bearing deposits increased $326.9 million or 4%, while noninterest-bearing deposits declined by $96.2 million or 3%. Growth within interest-bearing deposit categories was driven by savings accounts, which increased by $303.9 million or 24%. Interest checking accounts and money market accounts grew by $64.5 million or 4% and $51.6 million or 2% during the current quarter, respectively. These increases were partially offset by the $93.0 million or 3% reduction in time deposits, of which $49.8 million was related to a reduction in brokered time deposits. The decline in noninterest-bearing deposit category was primarily driven by decreases of $110.6 million or 9% and $35.9 million or 3% in commercial and small business checking accounts, respectively. Total deposits, excluding brokered deposits, increased by $286.6 million or 3% quarter-over-quarter and represented 93% of the total deposits as of March 31, 2024 compared to 92% at December 31, 2023, reflecting continued strength and stability of the core deposit base. The deposit growth experienced during the current quarter resulted in


the loan to deposit ratio declining to 101% at March 31, 2024 from 103% at December 31, 2023. Total uninsured deposits at March 31, 2024 were approximately 33% of the total deposits.

Total borrowings declined by $353.4 million or 27% at March 31, 2024 as compared to the previous quarter, driven by a full payoff of $300.0 million of outstanding borrowings through the Federal Reserve Bank's Bank Term Funding Program facility. In addition, FHLB advances were reduced by $50.0 million during the current quarter. At March 31, 2024, contingent liquidity, which consists 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 170% of uninsured deposits.

The tangible common equity ratio increased to 8.86% of tangible assets at March 31, 2024, compared to 8.77% at December 31, 2023. This increase reflected the impact of a $141.6 million reduction in tangible assets, while tangible common equity remained level during the current quarter.

At March 31, 2024, the Company had 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%. 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 March 31, 2024, non-performing loans totaled $84.4 million, compared to $91.8 million at December 31, 2023 and $47.2 million at March 31, 2023. Non-performing loans to total loans ratio was 0.74% compared to 0.81% on a linked quarter basis. These levels of non-performing loans compare to 0.41% at March 31, 2023. The current quarter's decrease in non-performing loans was mainly related to several full payoffs, charge-offs and the transfer of one commercial real estate loan into other real estate owned. The majority of the non-accrual loans fully paid off during the current quarter were previously adequately reserved for, which provided a benefit to the current quarter's provision expense as the respective individual reserves were released upon the full payoff. Additionally, during the current quarter, we foreclosed on and transferred one investment commercial real estate property out of non-accrual loan category into the other real estate owned. Total net charge-offs for the current quarter amounted to $1.1 million compared to net recoveries of $0.1 million for the fourth quarter of 2023 and $0.3 million of net recoveries for the first quarter of 2023.

At March 31, 2024, the allowance for credit losses was $123.1 million or 1.08% of outstanding loans and 146% of non-performing loans, compared to $120.9 million or 1.06% of outstanding loans and 132% of non-performing loans at the end of the previous quarter and $117.6 million or 1.03% of outstanding loans and 249% of non-performing loans at the end of the first quarter of 2023. The increase in the allowance for the current quarter compared to the previous quarter mainly reflects updates to risk adjustments applied to specific industries within the commercial real estate segment, partially offset by lower individual reserves due to non-accrual loan payoffs and the reduced probability of an economic recession.

Income Statement Review

Quarterly Results

Net income was $20.4 million ($0.45 per diluted common share) for the three months ended March 31, 2024 compared to $26.1 million ($0.58 per diluted common share) for the three months ended December 31, 2023 and $51.3 million ($1.14 per diluted common share) for the prior year quarter. The current quarter's core earnings were $21.9 million ($0.49 per diluted common share), compared to $27.1 million ($0.60 per diluted common share) for the previous quarter and $52.3 million ($1.16 per diluted common share) for the quarter ended March 31, 2023. The declines in the current quarter's net income and core earnings compared to the previous quarter were driven primarily by a higher provision for credit losses coupled with the decline in net interest income.

Net interest income for the first quarter of 2024 decreased $2.4 million or 3% compared to the previous quarter and $18.0 million or 18% compared to the first quarter of 2023. Both linked quarter and year-over-year decreases in net interest income were driven by higher interest expense, a result of higher funding costs, which outpaced growth in interest income. The rising interest rate environment was primarily responsible for a $14.7 million year-over-year increase in interest income. This growth in interest income was more than offset by the $32.6 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. Interest income growth occurred in all categories of commercial loans and, to a lesser degree, in residential mortgage loans, and consumer loans.

The net interest margin was 2.41% for the first quarter of 2024 compared to 2.45% for the fourth quarter of 2023 and 2.99% for the first quarter of 2023. The contraction of the net interest margin slowed down during the current quarter as the rate paid on interest-bearing liabilities rose 10 basis points, while the yield on interest-earning assets increased 9 basis points. The rate and yield increases year-over-year were driven by the several federal funds rate increases that occurred over the preceding twelve


months, competition for deposits in the market, and customer movement of excess funds out of noninterest-bearing accounts into higher yielding products. As compared to the prior year quarter, the yield on interest-earning assets increased 38 basis points while the rate paid on interest-bearing liabilities rose 115 basis points, resulting in net interest margin compression of 58 basis points. With respect to the current quarter, margin compression began to reverse itself as the net interest income and net interest margin increased during the last month of the current quarter.

The total provision for credit losses was $2.4 million for the first quarter of 2024 compared to a credit of $3.4 million for the previous quarter and a credit of $21.5 million for the first quarter of 2023. The provision for credit losses directly attributable to the funded loan portfolio was $3.3 million for the current quarter compared to a credit of $2.6 million for the fourth quarter of 2023 and the prior year quarter’s credit of $18.9 million. The current quarter's provision is mainly a reflection of adjustments applied to specific industries within the commercial real estate segment, partially offset by lower individual reserves due to full payoffs of several non-accrual loans along with the lower probability of an economic recession.

Non-interest income for the first quarter of 2024 increased by 11% or $1.8 million compared to the linked quarter and grew by 15% 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 wealth management income due to the $166.0 million or 3% growth in assets under management and the overall favorable market performance. Additionally, income from mortgage banking activities and other income, a result of increased credit-related fees, increased by $0.6 million and $0.5 million, respectively.

Non-interest expense for the first quarter of 2024 increased $0.9 million or 1% compared to the fourth quarter of 2023 and $1.7 million or 3% compared to the first quarter of 2023. Quarter-over-quarter increase is predominantly attributable to the $1.2 million increase in salaries and benefits, as more employees were subject to employer-related payroll taxes during the current quarter as compared to the previous quarter. This increase was partially offset by lower professional fees and lower marketing expense, which declined by $0.7 million and $0.5 million, respectively.

For the first quarter of 2024, the GAAP efficiency ratio was 69.60% compared to 68.33% for the fourth quarter of 2023 and 58.55% for the first quarter of 2023. The GAAP efficiency ratio rose from the prior year quarter primarily as a result of the 14% decrease in GAAP revenue in combination with the 3% increase in GAAP non-interest expense. The non-GAAP efficiency ratio was 66.73% for the current quarter as compared to 66.16% for the fourth quarter of 2023 and 56.87% for the first quarter of 2023. The increase in the non-GAAP efficiency ratio (reflecting a decrease in efficiency) from the first quarter of the prior year to the current year quarter was primarily the result of the 13% decline in non-GAAP revenue, while non-GAAP expenses increased 1%.

ROA for the quarter ended March 31, 2024 was 0.58% and ROTCE was 7.39% compared to 0.73% and 9.26%, respectively, for the fourth quarter of 2023 and 1.49% and 19.10%, respectively, for the first quarter of 2023. On a non-GAAP basis, the current quarter's core ROA was 0.63% and core ROTCE was 7.39% compared to 0.76% and 9.26% for the fourth quarter of 2023 and 1.52% and 19.11%, respectively, for the first quarter of 2023.

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), 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 first 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: 186461. 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 May 7, 2024. A replay of the teleconference will be available through the same time period by calling 1-866-813-9403 under conference call number 131243.

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
Philip J. Mantua, E.V.P. & Chief Financial Officer
Sandy Spring Bancorp
17801 Georgia Avenue
Olney, Maryland 20832
1-800-399-5919
Email: DSchrider@sandyspringbank.com
PMantua@sandyspringbank.com

Website: www.sandyspringbank.com
Media Contact:
Jen Schell, Senior Vice President
301-570-8331
jschell@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
March 31,		%
Change
(Dollars in thousands, except per share data)
20242023
Results of operations:
Net interest income$79,343$97,302(18)%
Provision/ (credit) for credit losses2,388(21,536)N/M
Non-interest income18,36715,95115 
Non-interest expense68,00666,3053 
Income before income tax expense27,31668,484(60)
Net income20,37251,253(60)
Net income attributable to common shareholders$20,346$51,084(60)
Pre-tax pre-provision net income (1)
$29,704$46,948(37)
Return on average assets0.58 %1.49 %
Return on average common equity5.17 %13.93 %
Return on average tangible common equity (1)
7.39 %19.10 %
Net interest margin2.41 %2.99 %
Efficiency ratio - GAAP basis (2)
69.60 %58.55 %
Efficiency ratio - Non-GAAP basis (2)
66.73 %56.87 %
Per share data:
Basic net income per common share$0.45$1.14(61)%
Diluted net income per common share$0.45$1.14(60)
Weighted average diluted common shares45,086,47144,872,582— 
Dividends declared per share$0.34$0.34— 
Book value per common share$35.37$34.373 
Tangible book value per common share (1)
$26.61$25.833 
Outstanding common shares44,940,14744,712,4971 
Financial condition at period-end:
Investment securities$1,405,490$1,528,336(8)%
Loans11,364,28411,395,241— 
Assets13,888,13314,129,007(2)
Deposits11,227,20011,075,9911 
Stockholders' equity1,589,3641,536,8653 
Capital ratios:
Tier 1 leverage (3)
9.56 %9.44 %
Common equity tier 1 capital to risk-weighted assets (3)
10.96 %10.53 %
Tier 1 capital to risk-weighted assets (3)
10.96 %10.53 %
Total regulatory capital to risk-weighted assets (3)
15.05 %14.43 %
Tangible common equity to tangible assets (4)
8.86 %8.40 %
Average equity to average assets11.27 %10.70 %
Credit quality ratios:
Allowance for credit losses to loans1.08 %1.03 %
Non-performing loans to total loans0.74 %0.41 %
Non-performing assets to total assets0.63 %0.34 %
Allowance for credit losses to non-performing loans145.78 %248.93 %
Annualized net charge-offs/ (recoveries) to average loans (5)
0.04 %(0.01)%

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 March 31, 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
March 31,
(Dollars in thousands)20242023
Core earnings (non-GAAP):
Net income (GAAP)$20,372$51,253
Plus/ (less) non-GAAP adjustments (net of tax)(1):
Amortization of intangible assets1,544973
Investment securities gains/ losses——
Contingent payment expense—27
Core earnings (Non-GAAP)$21,916$52,253
Core earnings per diluted common share (non-GAAP):
Weighted average common shares outstanding - diluted (GAAP)45,086,47144,872,582
Earnings per diluted common share (GAAP)$0.45$1.14
Core earnings per diluted common share (non-GAAP)$0.49$1.16
Core return on average assets (non-GAAP):
Average assets (GAAP)$14,061,935$13,949,276
Return on average assets (GAAP)
0.58 %1.49 %
Core return on average assets (non-GAAP)0.63 %1.52 %
Return/ Core return on average tangible common equity (non-GAAP):
Net Income (GAAP)$20,372$51,253
Plus: Amortization of intangible assets (net of tax)1,544973
Net income before amortization of intangible assets$21,916$52,226
Average total stockholders' equity (GAAP)$1,584,902$1,491,929
Average goodwill(363,436)(363,436)
Average other intangible assets, net(29,260)(19,380)
Average tangible common equity (non-GAAP)$1,192,206$1,109,113
Return on average tangible common equity (non-GAAP)
7.39 %19.10 %
Core return on average tangible common equity (non-GAAP)7.39 %19.11 %
(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
March 31,
(Dollars in thousands)20242023
Pre-tax pre-provision net income:
Net income (GAAP)$20,372$51,253
Plus/ (less) non-GAAP adjustments:
Income tax expense6,94417,231
Provision/ (credit) for credit losses2,388(21,536)
Pre-tax pre-provision net income (non-GAAP)$29,704$46,948
Efficiency ratio (GAAP):
Non-interest expense$68,006$66,305
Net interest income plus non-interest income$97,710$113,253
Efficiency ratio (GAAP)69.60%58.55 %
Efficiency ratio (Non-GAAP):
Non-interest expense$68,006$66,305
Less non-GAAP adjustments:
Amortization of intangible assets2,0691,306
Contingent payment expense—36
Non-interest expense - as adjusted$65,937$64,963
Net interest income plus non-interest income
$97,710$113,253
Plus non-GAAP adjustment:
Tax-equivalent income1,099970
Less/ (plus) non-GAAP adjustment:
Investment securities gains/ (losses)——
Net interest income plus non-interest income - as adjusted$98,809$114,223
Efficiency ratio (Non-GAAP)
66.73%56.87 %
Tangible common equity ratio:
Total stockholders' equity$1,589,364$1,536,865
Goodwill(363,436)(363,436)
Other intangible assets, net(29,864)(18,549)
Tangible common equity$1,196,064$1,154,880
Total assets
$13,888,133$14,129,007
Goodwill(363,436)(363,436)
Other intangible assets, net(29,864)(18,549)
Tangible assets$13,494,833$13,747,022
Tangible common equity ratio
8.86%8.40 %
Outstanding common shares44,940,14744,712,497
Tangible book value per common share$26.61$25.83




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

(Dollars in thousands)March 31,
2024		December 31,
2023
Assets
Cash and due from banks$79,305 $82,257 
Federal funds sold243 245 
Interest-bearing deposits with banks330,842 463,396 
Cash and cash equivalents410,390 545,898 
Residential mortgage loans held for sale (at fair value)16,627 10,836 
Investments held-to-maturity (fair values of $192,798 and $200,411 at March 31, 2024 and December 31, 2023, respectively)
231,354 236,165 
Investments available-for-sale (at fair value)1,100,741 1,102,681 
Other investments, at cost73,395 75,607 
Total loans11,364,284 11,366,989 
Less: allowance for credit losses - loans(123,096)(120,865)
Net loans11,241,188 11,246,124 
Premises and equipment, net59,843 59,490 
Other real estate owned2,700 — 
Accrued interest receivable47,152 46,583 
Goodwill363,436 363,436 
Other intangible assets, net29,864 28,301 
Other assets311,443 313,051 
Total assets$13,888,133 $14,028,172 
Liabilities
Noninterest-bearing deposits
$2,817,928 $2,914,161 
Interest-bearing deposits8,409,272 8,082,377 
Total deposits11,227,200 10,996,538 
Securities sold under retail repurchase agreements71,529 75,032 
Federal funds purchased— — 
Federal Reserve Bank borrowings— 300,000 
Advances from FHLB500,000 550,000 
Subordinated debt370,952 370,803 
Total borrowings942,481 1,295,835 
Accrued interest payable and other liabilities129,088 147,657 
Total liabilities12,298,769 12,440,030 
Stockholders' equity
Common stock -- par value $1.00; shares authorized 100,000,000; shares issued and outstanding 44,940,147 and 44,913,561 at March 31, 2024 and December 31, 2023, respectively.
44,940 44,914 
Additional paid in capital743,850 742,243 
Retained earnings903,377 898,316 
Accumulated other comprehensive loss(102,803)(97,331)
Total stockholders' equity1,589,364 1,588,142 
Total liabilities and stockholders' equity$13,888,133 $14,028,172 


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

Three Months Ended
March 31,
(Dollars in thousands, except per share data)20242023
Interest income:
Interest and fees on loans$150,635 $139,727 
Interest on loans held for sale128 152 
Interest on deposits with banks6,786 2,686 
Interest and dividend income on investment securities:
Taxable6,663 7,008 
Tax-advantaged1,797 1,770 
Interest on federal funds sold5 4 
Total interest income166,014 151,347 
Interest expense:
Interest on deposits73,366 40,788 
Interest on retail repurchase agreements and federal funds purchased
3,386 2,104 
Interest on advances from FHLB5,973 7,207 
Interest on subordinated debt3,946 3,946 
Total interest expense86,671 54,045 
Net interest income79,343 97,302 
Provision/ (credit) for credit losses2,388 (21,536)
Net interest income after provision/ (credit) for credit losses76,955 118,838 
Non-interest income:
Investment securities gains/ (losses)— — 
Service charges on deposit accounts2,817 2,388 
Mortgage banking activities1,374 1,245 
Wealth management income9,958 8,992 
Income from bank owned life insurance1,160 907 
Bank card fees413 418 
Other income2,645 2,001 
Total non-interest income18,367 15,951 
Non-interest expense:
Salaries and employee benefits36,698 38,926 
Occupancy expense of premises4,816 4,847 
Equipment expenses3,963 4,117 
Marketing742 1,543 
Outside data services3,103 2,514 
FDIC insurance2,911 2,138 
Amortization of intangible assets2,069 1,306 
Professional fees and services4,880 3,684 
Other expenses8,824 7,230 
Total non-interest expense68,006 66,305 
Income before income tax expense27,316 68,484 
Income tax expense6,944 17,231 
Net income$20,372 $51,253 

Net income per share amounts:
Basic net income per common share$0.45 $1.14 
Diluted net income per common share$0.45 $1.14 
Dividends declared per share$0.34 $0.34 


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

20242023
(Dollars in thousands, except per share data)Q1Q4Q3Q2Q1
Profitability for the quarter:
Tax-equivalent interest income
$167,113$166,729$163,479$159,156$152,317
Interest expense    
86,67183,92077,33067,67954,045
Tax-equivalent net interest income80,44282,80986,14991,47798,272
Tax-equivalent adjustment
1,0991,1131,0681,006970
Provision/ (credit) for credit losses2,388(3,445)2,3655,055(21,536)
Non-interest income
18,36716,56017,39117,17615,951
Non-interest expense
68,00667,14272,47169,13666,305
Income before income tax expense27,31634,55927,63633,45668,484
Income tax expense6,9448,4596,8908,71117,231
Net income$20,372$26,100$20,746$24,745$51,253
GAAP financial performance:
Return on average assets0.58 %0.73 %0.58 %0.70 %1.49 %
Return on average common equity5.17 %6.70 %5.35 %6.46 %13.93 %
Return on average tangible common equity7.39 %9.26 %7.42 %8.93 %19.10 %
Net interest margin2.41 %2.45 %2.55 %2.73 %2.99 %
Efficiency ratio - GAAP basis69.60 %68.33 %70.72 %64.22 %58.55 %
Non-GAAP financial performance:
Pre-tax pre-provision net income$29,704$31,114$30,001$38,511$46,948
Core after-tax earnings$21,916$27,147$27,766$27,136$52,253
Core return on average assets0.63 %0.76 %0.78 %0.77 %1.52 %
Core return on average common equity5.56 %6.97 %7.16 %7.09 %14.20 %
Core return on average tangible common equity7.39 %9.26 %9.51 %9.43 %19.11 %
Core earnings per diluted common share$0.49$0.60$0.62$0.60$1.16
Efficiency ratio - Non-GAAP basis66.73 %66.16 %60.91 %60.68 %56.87 %
Per share data:
Net income attributable to common shareholders$20,346$26,066$20,719$24,712$51,084
Basic net income per common share$0.45$0.58$0.46$0.55$1.14
Diluted net income per common share$0.45$0.58$0.46$0.55$1.14
Weighted average diluted common shares45,086,47145,009,57444,960,45544,888,75944,872,582
Dividends declared per share$0.34$0.34$0.34$0.34$0.34
Non-interest income:
Securities gains/ (losses)$—$—$—$—$—
Service charges on deposit accounts2,8172,7492,7042,6062,388
Mortgage banking activities1,3747921,6821,8171,245
Wealth management income9,9589,2199,3919,0318,992
Income from bank owned life insurance1,1601,2078451,251907
Bank card fees413454450447418
Other income2,6452,1392,3192,0242,001
Total non-interest income$18,367$16,560$17,391$17,176$15,951
Non-interest expense:
Salaries and employee benefits$36,698$35,482$44,853$40,931$38,926
Occupancy expense of premises4,8164,5584,6094,7644,847
Equipment expenses3,9633,9873,8113,7604,117
Marketing7421,2427291,5891,543
Outside data services3,1033,0002,8192,8532,514
FDIC insurance2,9112,6152,3332,3752,138
Amortization of intangible assets2,0691,4031,2451,2691,306
Professional fees and services4,8805,6284,5094,1613,684
Other expenses8,8249,2277,5637,4347,230
Total non-interest expense$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)Q1Q4Q3Q2Q1
Balance sheets at quarter end:
Commercial investor real estate loans$4,997,879$5,104,425$5,137,694$5,131,210$5,167,456
Commercial owner-occupied real estate loans1,741,1131,755,2351,760,3841,770,1351,769,928
Commercial AD&C loans1,090,259988,967938,6731,045,7421,046,665
Commercial business loans1,509,5921,504,8801,454,7091,423,6141,437,478
Residential mortgage loans1,511,6241,474,5211,432,0511,385,7431,328,524
Residential construction loans97,685121,419160,345190,690223,456
Consumer loans416,132417,542416,436422,505421,734
Total loans11,364,28411,366,98911,300,29211,369,63911,395,241
Allowance for credit losses - loans(123,096)(120,865)(123,360)(120,287)(117,613)
Loans held for sale16,62710,83619,23521,47616,262
Investment securities1,405,4901,414,4531,392,0781,463,5541,528,336
Total assets13,888,13314,028,17214,135,08513,994,54514,129,007
Noninterest-bearing demand deposits2,817,9282,914,1613,013,9053,079,8963,228,678
Total deposits11,227,20010,996,53811,151,01210,958,92211,075,991
Customer repurchase agreements71,52975,03266,58174,51047,627
Total stockholders' equity1,589,3641,588,1421,537,9141,539,0321,536,865
Quarterly average balance sheets:
Commercial investor real estate loans$5,057,334$5,125,028$5,125,459$5,146,632$5,136,204
Commercial owner-occupied real estate loans1,746,0421,755,0481,769,7171,773,0391,769,680
Commercial AD&C loans1,030,763960,646995,6821,057,2051,082,791
Commercial business loans1,508,3361,433,0351,442,5181,441,4891,444,588
Residential mortgage loans1,491,2771,451,6141,406,9291,353,8091,307,761
Residential construction loans110,456142,325174,204211,590223,313
Consumer loans417,539419,299421,189423,306424,122
Total loans11,361,74711,286,99511,335,69811,407,07011,388,459
Loans held for sale8,14210,13213,71417,4808,324
Investment securities1,536,1271,544,1731,589,3421,639,3241,679,593
Interest-earning assets13,411,81013,462,58313,444,11713,423,58913,316,165
Total assets14,061,93514,090,42314,086,34214,094,65313,949,276
Noninterest-bearing demand deposits2,730,2952,958,2543,041,1013,137,9713,480,433
Total deposits11,086,14511,089,58711,076,72410,928,03811,049,991
Customer repurchase agreements72,83666,62267,29858,38260,626
Total interest-bearing liabilities9,583,0749,418,6669,332,6179,257,6528,806,720
Total stockholders' equity1,584,9021,546,3121,538,5531,535,4651,491,929
Financial measures:
Average equity to average assets11.27 %10.97 %10.92 %10.89 %10.70 %
Average investment securities to average earning assets11.45 %11.47 %11.82 %12.21 %12.61 %
Average loans to average earning assets84.71 %83.84 %84.32 %84.98 %85.52 %
Loans to assets81.83 %81.03 %79.94 %81.24 %80.65 %
Loans to deposits101.22 %103.37 %101.34 %103.75 %102.88 %
Assets under management$6,165,509$5,999,520$5,536,499$5,742,888$5,477,560
Capital measures:
Tier 1 leverage (1)
9.56 %9.51 %9.50 %9.42 %9.44 %
Common equity tier 1 capital to risk-weighted assets (1)
10.96 %10.90 %10.83 %10.65 %10.53 %
Tier 1 capital to risk-weighted assets (1)
10.96 %10.90 %10.83 %10.65 %10.53 %
Total regulatory capital to risk-weighted assets (1)
15.05 %14.92 %14.85 %14.60 %14.43 %
Book value per common share$35.37$35.36$34.26$34.31$34.37
Outstanding common shares
44,940,14744,913,56144,895,15844,862,36944,712,497
(1) Estimated ratio at March 31, 2024.



Sandy Spring Bancorp, Inc. and Subsidiaries
LOAN PORTFOLIO QUALITY DETAIL - UNAUDITED
20242023
(Dollars in thousands)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 340 342 — 692 352 
Residential construction— — — — — 
Consumer— — — — — 
Total loans 90 days past due
360 362 415 721 3,569 
Non-accrual loans:
Commercial real estate:
Commercial investor real estate 55,579 58,658 20,108 20,381 15,451 
Commercial owner-occupied real estate4,394 4,640 4,744 4,846 4,949 
Commercial AD&C556 1,259 1,422 569 — 
Commercial business7,164 10,051 9,671 9,393 9,443 
Residential real estate:
Residential mortgage 11,835 12,332 10,766 10,153 8,935 
Residential construction542 443 449 — — 
Consumer4,011 4,102 4,187 3,396 4,900 
Total non-accrual loans84,081 91,485 51,347 48,738 43,678 
Total non-performing loans84,441 91,847 51,762 49,459 47,247 
Other real estate owned (OREO)2,700 — 261 611 645 
Total non-performing assets$87,141 $91,847 $52,023 $50,070 $47,892 

For the Quarter Ended,
(Dollars in thousands)
March 31,
2024		December 31,
2023		September 30,
2023		June 30,
2023		March 31,
2023
Analysis of non-accrual loan activity:
Balance at beginning of period$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(4,017)(7,619)(1,545)(1,654)(10,212)
Loans placed on non-accrual1,49047,9204,9679,27619,714
Non-accrual loans brought current(627)(163)(630)(513)(480)
Balance at end of period$84,081$91,485$51,347$48,738$43,678
Analysis of allowance for credit losses - loans:
Balance at beginning of period$120,865$123,360$120,287$117,613$136,242
Provision/ (credit) for credit losses - loans3,331(2,574)3,1714,454(18,945)
Less loans charged-off, net of recoveries:
Commercial real estate:
    Commercial investor real estate(2)(3)(3)(14)(5)
Commercial owner-occupied real estate(27)(27)(25)(27)(26)
Commercial AD&C(283)————
Commercial business 1,550(105)15363(127)
Residential real estate:
Residential mortgage(6)(6)(4)3521
Residential construction—————
Consumer(132)621151,423(179)
Net charge-offs/ (recoveries)1,100(79)981,780(316)
Balance at the end of period$123,096$120,865$123,360$120,287$117,613
Asset quality ratios:
Non-performing loans to total loans0.74 %0.81 %0.46 %0.44 %0.41 %
Non-performing assets to total assets0.63 %0.65 %0.37 %0.36 %0.34 %
Allowance for credit losses to loans1.08 %1.06 %1.09 %1.06 %1.03 %
Allowance for credit losses to non-performing loans145.78 %131.59 %238.32 %243.21 %248.93 %
Annualized net charge-offs/ (recoveries) to average loans0.04 %— %— %0.06 %(0.01)%



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

Three Months Ended March 31,
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
$5,057,334 $59,642 4.74 %$5,136,204 $57,801 4.56 %
Commercial owner-occupied real estate loans1,746,042 20,718 4.77 1,769,680 19,598 4.49 
Commercial AD&C loans1,030,763 21,253 8.29 1,082,791 19,839 7.43 
Commercial business loans1,508,336 26,061 6.95 1,444,588 22,200 6.23 
Total commercial loans9,342,475 127,674 5.50 9,433,263 119,438 5.13 
Residential mortgage loans1,491,277 13,805 3.70 1,307,761 11,418 3.49 
Residential construction loans110,456 1,256 4.57 223,313 1,814 3.29 
Consumer loans417,539 8,541 8.23 424,122 7,587 7.25 
Total residential and consumer loans2,019,272 23,602 4.69 1,955,196 20,819 4.29 
Total loans (2)
11,361,747 151,276 5.35 11,388,459 140,257 4.99 
Loans held for sale8,142 128 6.29 8,324 152 7.29 
Taxable securities1,188,446 6,663 2.24 1,297,769 7,008 2.16 
Tax-advantaged securities347,681 2,255 2.60 381,824 2,210 2.32 
Total investment securities (3)
1,536,127 8,918 2.32 1,679,593 9,218 2.20 
Interest-bearing deposits with banks505,461 6,786 5.40 239,459 2,686 4.55 
Federal funds sold333 5 5.50 330 4 4.69 
Total interest-earning assets13,411,810 167,113 5.01 13,316,165 152,317 4.63 
Less: allowance for credit losses - loans
(119,487)(136,899)
Cash and due from banks82,667 95,057 
Premises and equipment, net59,776 67,696 
Other assets627,169 607,257 
Total assets$14,061,935 $13,949,276 
Liabilities and Stockholders' Equity
Interest-bearing demand deposits
$1,476,961 $5,901 1.61 %$1,381,858 $2,630 0.77 %
Regular savings deposits1,444,713 12,880 3.59 505,364 363 0.29 
Money market savings deposits2,731,291 24,646 3.63 3,299,794 21,338 2.62 
Time deposits2,702,885 29,939 4.45 2,382,542 16,457 2.80 
Total interest-bearing deposits8,355,850 73,366 3.53 7,569,558 40,788 2.19 
Repurchase agreements72,836 394 2.17 60,626 21 0.14 
Federal funds purchased and Federal Reserve Bank borrowings237,373 2,992 5.07 171,222 2,083 4.93 
Advances from FHLB546,154 5,973 4.40 635,056 7,207 4.60 
Subordinated debt370,861 3,946 4.26 370,258 3,946 4.26 
Total borrowings1,227,224 13,305 4.36 1,237,162 13,257 4.35 
Total interest-bearing liabilities9,583,074 86,671 3.64 8,806,720 54,045 2.49 
Noninterest-bearing demand deposits
2,730,295 3,480,433 
Other liabilities163,664 170,194 
Stockholders' equity1,584,902 1,491,929 
Total liabilities and stockholders' equity$14,061,935 $13,949,276 
Tax-equivalent net interest income and spread
$80,442 1.37 %$98,272 2.14 %
Less: tax-equivalent adjustment1,099 970 
Net interest income$79,343 $97,302 
Interest income/earning assets
5.01 %4.63 %
Interest expense/earning assets2.60 1.64 
Net interest margin2.41 %2.99 %
(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.



a1stquarter2024investorp
First Quarter 2024 Earnings Presentation April 23, 2024

 
First Quarter 2024 Results 1Q 2024 Highlights1 • Total core customer deposit growth of $286.6 million (+3%), total deposit growth of $230.7 million • Total loans remained flat at $11.4 billion • Net interest income of $79.3 million (-3%) • Net interest margin of 2.41% (-4 bps) • Pre-tax pre-provision income of $29.7 million; pre-tax income of $27.3 million • Return on average tangible common equity of 7.39%; return on average equity of 5.17% • Common equity tier 1 risk-based capital ratio of ratio of 10.96% • NCOs / average loans (annualized) of 0.04% • Provision for credit losses on loans of $2.4 million • ACL / loans increased to 1.08% • Tangible book value / share of $26.61 1Q 2024 net income of $20.4 million, or $0.45 per common share $20.3 million Net Income Available to Common Equity (-22% vs. 4Q 2023) $29.7 million Pre-Tax Pre-Provision Income2 (-5% vs. 4Q 2023) $27.3 million Income Before Income Taxes (-21% vs. 4Q 2023) $11.4 billion Total Period End Loans (flat vs. 4Q 2023) $11.2 billion Total Period End Deposits (+2% vs. 4Q 2023) 1 All figures shown on an end of period basis with comparisons to the fourth quarter of 2023 unless otherwise noted. 2

 
$1.14 $0.55 $0.46 $0.58 $0.45 $0.02 $0.05 $0.16 $0.02 $0.04 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 Diluted Earnings Per Share Core Earnings per Share Adjustment¹ Profitability Trends Core Earnings Per Share1 Net Interest Margin compression reduced earnings as interest rates rose but is expected to abate in 2Q 2024 $1.16 $0.60 $0.62 $0.60 $0.49 Return on Average Assets2 1 Non-GAAP financial measure. See reconciliation t most directly comparable GAAP measure in “Appendix – Reconciliation of non-GAAP Measures” 2 Annualized metric 1.49% 0.70% 0.58% 0.73% 0.58% 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 Return on Average Common Equity2 13.93% 6.46% 5.35% 6.70% 5.17% 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 3

 
Noninterest -bearing demand 25% Interest- bearing demand 13% Savings 14% Money Market 24% Customer CDs 17% Brokered CDs 7% $3,229 $3,080 $3,014 $2,914 $2,818 $1,472 $1,413 $1,456 $1,464 $1,528 $518 $732 $1,009 $1,275 $1,579 $3,211 $2,918 $2,741 $2,629 $2,680 $1,444 $1,606 $1,877 $1,914 $1,871 $1,202 $1,210 $1,054 $801 $751 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 Noninterest-bearing demand Interest-bearing demand Savings Money Market Customer CDs Brokered CDs Quarterly Deposit Trends Quarterly Deposits Total deposits increased $230.7 million or 2% to $11.2 billion. Interest-bearing deposits increased 4% while noninterest-bearing deposits declined 3% $11,076 $10,959 $11,151 $10,997 $11,227 ($ in millions) Deposit Composition $11.2 bn  The Company reduced its total brokered deposits by $55.8 million during the current quarter.  Total deposits, excluding brokered deposits, increased by $286.6 million or 3% quarter-over-quarter. 4

 
Insured vs Uninsured Deposits Available unused sources of liquidity are 170% of uninsured deposits Insured $7.5 bn 67% Uninsured $3.7 bn 33%  Available unused sources of liquidity is $6.3 billion or 170% of uninsured deposits  38% of uninsured depositors have a lending relationship with the Company.  73% of uninsured deposits are Business accounts, 42% of which have a lending relationship; 35% of uninsured deposits are Trust accounts, 36% of which have a lending relationship.  Stress testing is performed quarterly and includes both systemic and idiosyncratic scenarios $11.2 bn Deposit Breakdown1 Uninsured Deposits by Type1 $3.7 bn $6.3 bn Uninsured Deposits Available Unused Sources of Liquidity Source: Company Documents 1 As of March 31, 2024 Commercial $2.7 bn 73% Retail $1.0 bn 27% $3.7 bn 5

 
Deposit Overview 57% of core deposit balances are in low-cost transaction and savings accounts  57% of total core deposits are business accounts  Average length of relationship is 9.7 years  73% of uninsured deposits were commercial as of 1Q 2024  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 NAICS1 Non- interest Bearing Checking 27% Money Market 26% Interest Checking 15% Savings 15% Time Deposits 17% $10.4 bn $4.7 bn Source: Company Documents 1 As of March 31, 2024 2 Other Misc includes churches, education, health services education, wholesale and nonresidential lessors Other 28% Real Estate 16% Services 10% Trade Contractors 6% Professional Services 6% Building Contractors 4% Org. Services 5% Engineering & Mgmt 5% Insurance 5% Other Misc. 15% 2 6

 
Investor Real Estate 44% Owner- occupied Real Estate 15% AD&C 10% C&I 13% Residential Mortgage 13% Consumer 4% Residential Construction 1% $5,167 $5,131 $5,138 $5,104 $4,998 $1,770 $1,770 $1,760 $1,755 $1,741 $1,047 $1,046 $939 $989 $1,090 $1,437 $1,424 $1,455 $1,505 $1,509 $1,329 $1,386 $1,432 $1,475 $1,512 $422 $422 $416 $418 $416$223 $191 $160 $121 $98 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 Investor Real Estate Owner-occupied Real Estate AD&C C&I Residential Mortgage Consumer Residential Construction Quarterly Loan Trends Quarterly Loans Focused on core, profitable relationships during the quarter $11,395 $11,370 $11,300 $11,367 $11,364 ($ in millions) Loan Composition $11.4 bn 7

 
Construction 14% Other Services 11% R/E Rental & Leasing 8% Prof., Scientific & Tech. 9% Health Care 8% Educational Services 11% Retail 8% Arts, Entertainment 6% Wholesale 6% Other Misc. 19% Retail 29% Office 14% Residential 12% Apartment 14% Hotel 6% Warehouse 7% Other Misc 18% Commercial Loans by Type CRE by Collateral Type Office exposure is $843 million or 14% of CRE, flat 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 Multi-family 35% Retail 16%Office 10% Condo 8% Mixed Use 5% Townhouse 5% Warehouse 4% Hotel 4% Single Family 4% Other Misc 9% $972 mm Multi-family 19% Townhouse 16% Office 15% Retail 14% Mixed Use 13% Industrial 7% Warehouse 5% Single Family 4% Automotive 2% Other Misc. 5% $385 mm 9

 
$97,302 $90,471 $85,081 81,696 79,343 2.00 2.50 3.00 3.50 0 20,000 40,000 60,000 80,000 100,000 120,000 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 Net Interest Income Net interest Margin Net Interest Income and Net Interest Margin Trends Net Interest Income and Margin ($ in thousands) Comments  The net interest margin was 2.41% for the current quarter compared to 2.45% for Q4 2023.  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 the prior year quarter, the yield on interest earning assets increased 38 bps and the rate paid on interest bearing liabilities rose 115 bps resulting in margin compression of 58 basis points.  Overall, the rate of net interest margin contraction slowed down during the current quarter and we experienced a margin increase during the last month of the current quarter. 2.99% 2.73% 2.55% 2.45% 2.41% 10

 
Yield and Cost Trends Selected Yields (%) Asset & Liability Yield / Rate Trends (%) Asset yields continue to reprice at higher rates while increases in deposit costs have moderated 4.63 4.75 4.83 4.92 5.01 2.49 2.93 3.29 3.54 3.64 0.00 1.00 2.00 3.00 4.00 5.00 6.00 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Pe rc en t Total earning assets Total interest-bearing liabilities 4.00 4.20 4.40 4.60 4.80 5.00 5.20 5.40 5.60 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Pe rc en t Commercial investor real estate loans Total commercial loans Total residential mortgage & consumer loans Total loans Total earning assets 11

 
Service Charges on Deposits 15% Mortgage Banking 8% Wealth Management 54% BOLI Income 6% Bank Card Revenue 2% Other Income 15% Non-interest Income Revenue Composition Stronger market conditions and client acquisition drive higher wealth management fees $18.4 mm  Wealth management income increased compared to the prior quarter due to a 3% increase in assets under management and the overall favorable market performance.  Higher income from mortgage banking activities and other income, generated by increased credit-related fees. $ Change vs ($ in thousands) 1Q 2024 4Q 2023 1Q 2023 Service Charges on Deposits 2,817 68 429 Mortgage Banking 1,374 582 129 Wealth Management 9,958 739 966 BOLI Income 1,160 (47) 253 Bank Card Revenue 413 (41) (5) Other Income 2,645 506 644 Total non-interest income $ 18,367 $ 1,807 $ 2,416 12

 
Non-interest Expense Non-interest Expense Trends Increase due to higher personnel expense as more employees were subject to employer-related payroll taxes during the current quarter ($ in thousands) Non-interest Expense Detail Fully Tax-Equivalent Efficiency Ratio1 (%) $66,305 $69,136 $72,471 $67,142 $68,006 Source: Company documents 1) Non-GAAP financial measure; see reconciliation to most directly comparable GAAP measure in “Appendix – Reconciliation of non-GAAP Financial Measures” 58.6 64.2 70.7 68.3 69.6 56.9 60.7 60.9 66.2 66.7 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Efficiency Ratio (GAAP) Efficiency Ratio (Non-GAAP) $38,926 $40,931 $36,696 $35,482 $36,698 $12,217 $12,667 $11,870 $14,487 $14,546 $8,964 $8,524 $8,420 $8,545 $8,779 $2,514 $2,853 $2,819 $3,000 $3,103 $3,684 $4,161 $4,509 $5,628 $4,880 $8,157 Q2 2023 Q3 2023 Q3 2023 Q4 2023 Q1 2024 Personnel Expense Other Expense Occupancy and Equipment Expense Data Services Expense Professional Expense Pension Settlement Expense $ Change vs ($ in thousands) Q1 2024 Q4 2023 Q1 2023 Salaries and employee benefits $ 36,698 $ 1,216 $ (2,228) Occupancy expense of premises $ 4,816 $ 258 $ (31) Equipment expenses $ 3,963 $ (24) $ (154) Marketing $ 742 $ (500) $ (801) Outside data services $ 3,103 $ 103 $ 589 FDIC insurance $ 2,911 $ 296 $ 773 Amortization of intangible assets $ 2,069 $ 666 $ 763 Professional fees and services $ 4,880 $ (748) $ 1,196 Other expenses $ 8,824 $ (403) $ 1,594 Total non-interest expense $ 68,006 $ 864 $ 1,701 13

 
Current Expected Credit Losses - Loans ACL increased due to adjustments of risk factors applied to specific loan industries ACL by Loan TypeACL / Total Loans $117,613 $120,287 $123,360 $120,865 $123,096 1.03% 1.06% 1.09% 1.06% 1.08% $114,000 $115,000 $116,000 $117,000 $118,000 $119,000 $120,000 $121,000 $122,000 $123,000 $124,000 0.30% 0.50% 0.70% 0.90% 1.10% 1.30% 1.50% 1.70% 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 Total ACL ACL/Total Loans ($ in thousands)  ACL of $123.1 million or 1.08% of outstanding loans equals 146% of non-performing loans at March 31, 2024  The increase in the provision during the current quarter was attributable to the adjustments of risk factors applied to specific industries within the commercial real estate segment, partially offset by lower individual reserves, the result of several payoffs of non-accrual loans, and the reduced probability of an economic recession. In addition, during the current quarter, the reserve for unfunded commitments decreased by $0.9 million, a result of higher utilization rates on lines of credit.  Utilized February 2024 Moody’s baseline forecast in quantitative model 14 ($ thousands) 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 Investor Real Estate $ $56,962 $ $61,087 $ $63,192 $ $61,439 $ $64,299 Owner-Occupied Real Estate $9,876 $9,230 $8,961 $7,536 $6,907 Commercial AD&C $11,953 $10,200 $9,100 $8,287 $10,845 Commercial Business $25,900 $27,914 $30,720 $31,932 $29,037 Total Commercial $104,691 $108,431 $111,973 $109,194 $111,088 Residential Mortgage $9,753 $9,161 $8,499 $8,890 $9,091 Residential Construction $1,104 850 $672 $729 $423 Consumer $2,065 $1,845 $2,216 $2,052 $2,494 Total Residential and Consumer $12,922 $11,856 $11,387 $11,671 $12,008 Allowance for Credit Losses $ 117,613 $ 120,287 $ 123,360 $ 120,865 $ 123,096

 
Strong Credit Culture and Performance Reduction this quarter in non-performing loans related to several full payoffs, charge-offs and the transfer of one CRE loan to OREO 0.34% 0.36% 0.37% 0.65% 0.63% 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 Non-performing Assets / Total Assets (0.01%) 0.06% --% --% 0.04% 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 Ann. Net Charge-offs (Recoveries) / Average Loans Non-performing Loans / Loans Reserves / Loans HFI 0.41% 0.44% 0.46% 0.81% 0.74% 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 1.03% 1.06% 1.09% 1.06% 1.08% 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 15

 
Retail Space CRE Overview Retail Space exposure down $9 million or 0.5% since 4Q 2023 $1,834 $1,827 $1,815 $1,802 $1,793 $1,770 $1,780 $1,790 $1,800 $1,810 $1,820 $1,830 $1,840 0.00% 0.05% 0.10% 0.15% 0.20% 0.25% 0.30% 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 Balance ($mm) Non-Performing % Delinquency % (30-89 Days) Retail Space Trends Retail Space by Geography ($mm) $947 $444 $140 $75 $68 $48 $45 $26 Other MD Other VA Washington, DC Out of Territory Rockville, MD Baltimore, MD Alexandria, VA Silver Spring, MD $ m illi on s ($ in millions) 16 Total CRE Balance $1,792,719 # of Loans 492 # of Clients 282 Fixed Rate $1,501,961 83.8% Floating Rate* $45,818 2.6% Adjustable Rate $244,940 13.7% Weighted Avg. Int. Rate 4.38% Investment $1,727,983 96.4% Construction $64,737 3.6% Maturing in 12 Months $150,689 8.4% Maturing in 12-24 Months $128,251 7.2% Rate Change in 12 Months $148,358 8.3% Rate Change in 12-24 Months $20,492 1.1% Accruing Delinquent Loans (#) 2 0.4% Accruing Delinquent Loans ($) $4,500 0.3% Non-Performing Loans (#) 1 0.2% Non-Performing Loans ($) $554 0.0% Criticized Loans (#) 8 1.6% Criticized Loans ($) $6,280 0.4% Non-Recourse (#) 76 15.4% Non-Recourse ($) $787,450 43.9% Maryland $1,089,202 60.8% Virginia $488,837 27.3% DC $140,042 7.8% Out of Territory $74,639 4.2% *Floating rate loans change when the index changes Retail Space

 
Multifamily CRE Overview Multi-family exposure up $104mm, or 11.8% quarter-over-quarter Multi-family Trends Multi-family by Geography $999 $954 $965 $885 $989 $820 $840 $860 $880 $900 $920 $940 $960 $980 $1,000 $1,020 0.00% 1.00% 2.00% 3.00% 4.00% 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 Balance ($mm) Non-Performing % Delinquency % (30-89 Days) $366 $230 $145 $151 $84 $6 $7 Washington, DC Other MD Out of Territory Baltimore, MD Other VA Alexandria, VA Silver Spring, MD $ m illi on s ($ in millions) 17 Total CRE Balance $989,424 # of Loans 250 # of Clients 161 Apartment Building $891,023 90.1% Mixed Use (res. & comm.) $44,846 4.5% Other $53,555 5.4% Fixed Rate $569,006 57.5% Floating Rate* $104,071 10.5% Adjustable Rate $316,347 32.0% Weighted Avg. Int. Rate 7.36% Investment $794,519 80.3% Construction $194,904 19.7% Maturing in 12 Months $240,147 24.3% Maturing in 12-24 Months $42,502 4.3% Rate Change in 12 Months $262,681 26.5% Rate Change in 12-24 Months $23,690 2.4% Accruing Delinquent Loans (#) 0 0.0% Accruing Delinquent Loans ($) $0 0.0% Non-Performing Loans (#) 4 1.6% Non-Performing Loans ($) $29,874 3.0% Criticized Loans (#) 9 3.6% Criticized Loans ($) $35,699 3.6% Non-Recourse (#) 19 7.6% Non-Recourse ($) $233,344 23.6% Maryland $388,026 39.2% Virginia $89,465 9.0% DC $366,878 37.1% Out of Territory $144,480 14.6% *Floating rate loans change when the index changes Multi-Family

 
Office CRE Overview Office exposure flat compared to 4Q 2023. Office Trends Office by Geography $879 $874 $863 $843 $842 $820 $830 $840 $850 $860 $870 $880 $890 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 Balance ($mm) Non-Performing % Delinquency % (30-89 Days) $316 $217 $80 $66 $49 $50 $34 $18 $12 Other MD Other VA Washington, DC Rockville, MD Alexandria, VA Baltimore, MD Silver Spring, MD Reston, VA Out of Territory $ m illi on s ($ in millions) 18 Total CRE Balance $841,507 # of Loans 289 # of Clients 224 Class A $215,457 25.6% Class B $275,649 32.8% Class C $41,707 5.0% N/A (loans under $5MM) $308,694 36.7% Fixed Rate $651,276 77.4% Floating Rate* $28,742 3.4% Adjustable Rate $161,489 19.2% Weighted Avg. Int. Rate 4.95% Investment $713,023 84.7% Construction $128,484 15.3% Maturing in 12 Months $139,229 16.5% Maturing in 12-24 Months $87,826 10.4% Rate Change in 12 Months $81,618 9.7% Rate Change in 12-24 Months $21,579 2.6% Accruing Delinquent Loans (#) 1 0.3% Accruing Delinquent Loans ($) $455 0.1% Non-Performing Loans (#) 0 0.0% Non-Performing Loans ($) $0 0.0% Criticized Loans (#) 2 0.7% Criticized Loans ($) $13,876 1.6% Non-Recourse (#) 17 5.9% Non-Recourse ($) $150,908 17.9% Maryland $464,647 55.2% Virginia $284,141 33.8% DC $80,253 9.5% Out of Territory $12,466 1.5% *Floating rate loans change when the index changes Office Space

 
Flex and Warehouse CRE Overview Flex and Warehouse down $9 million, or 1.5%, compared to 4Q 2023. Flex and Warehouse Trends Flex and Warehouse by Geography $569 $612 $577 $583 $574 $540 $550 $560 $570 $580 $590 $600 $610 $620 0.00% 0.05% 0.10% 0.15% 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 Balance Non-Performing % Delinquency % (30-89 Days) $226 $188 $57 $38 $32 $28 $6 Other MD Other VA Rockville, MD Washington, DC Out of Territory Baltimore, MD Alexandria, VA $ m illi on s ($ in millions) 19 Total CRE Balance $574,130 # of Loans 171 # of Clients 124 Flex Space $168,248 29.3% Warehouse Space $405,882 70.7% Fixed Rate $421,425 73.4% Floating Rate* $42,382 7.4% Adjustable Rate $110,323 19.2% Weighted Avg. Int. Rate 5.23% Investment $437,282 76.2% Construction $136,848 23.8% Maturing in 12 Months $62,377 10.9% Maturing in 12-24 Months $50,757 8.8% Rate Change in 12 Months $83,986 14.6% Rate Change in 12-24 Months $6,967 1.2% Accruing Delinquent Loans (#) 0 0.0% Accruing Delinquent Loans ($) $0 0.0% Non-Performing Loans (#) 0 0.0% Non-Performing Loans ($) $0 0.0% Criticized Loans (#) 0 0.0% Criticized Loans ($) $0 0.0% Non-Recourse (#) 17 9.9% Non-Recourse ($) $138,270 24.1% Maryland $310,761 54.1% Virginia $193,413 33.7% DC $37,702 6.6% Out of Territory $32,255 5.6% *Floating rate loans change when the index changes Flex & Warehouse Space

 
Hotel CRE Overview Hotel exposure flat compared to 4Q 2023. Hotel Trends Hotel by Geography $397 $391 $378 $375 $374 $360 $365 $370 $375 $380 $385 $390 $395 $400 0.00% 20.00% 40.00% 60.00% 80.00% 100.00% 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 Balance Non-Performing % Delinquency % (30-89 Days) $198 $80 $38 $38 $13 $7 Other MD Other VA Washington, DC Alexandria, VA Baltimore, MD Out of Territory $ m illi on s ($ in millions) 20 Total CRE Balance $373,767 # of Loans 64 # of Clients 33 Fixed Rate $275,297 73.7% Floating Rate* $15,895 4.3% Adjustable Rate $82,574 22.1% Weighted Avg. Int. Rate 5.07% Investment $365,904 97.9% Construction $7,863 2.1% Maturing in 12 Months $81,753 21.9% Maturing in 12-24 Months $67,266 18.0% Rate Change in 12 Months $25,425 6.8% Rate Change in 12-24 Months $27,907 7.5% Accruing Delinquent Loans (#) 0 0.0% Accruing Delinquent Loans ($) $0 0.0% Non-Performing Loans (#) 0 0.0% Non-Performing Loans ($) $0 0.0% Criticized Loans (#) 0 0.0% Criticized Loans ($) $0 0.0% Non-Recourse (#) 1 1.6% Non-Recourse ($) $18,532 5.0% Maryland $211,076 56.5% Virginia $118,008 31.6% DC $38,056 10.2% Out of Territory $6,626 1.8% *Floating rate loans change when the index changes Hotel

 
Capital Ratios 1Q 2024 Capital Ratios Comments  Quarterly dividend currently $0.34 per share. Annualized dividend yield 5.87%1  76% of 1Q 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 $25.83 $25.82 $25.80 $26.64 $26.61 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 1 Based on March 28, 2024 SASR closing share price of $23.18 2 Non-GAAP financial measure; see reconciliation to most directly comparable GAAP measure in “Appendix – Reconciliation of non-GAAP Financial Measures” 8.40% 10.53% 10.53% 14.43% 8.86% 10.96% 10.96% 15.05% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% TCE Ratio Tier 1 Common Equity Ratio Tier 1 Capital Ratio Total Capital Ratio 1Q 2023 1Q 2024 21

 
2024 Management Outlook Outlook for full-year 2024 compared to full-year 2023 Balance Sheet Loan Growth Deposit Growth Net Interest Margin Low/Mid-single digits Mid-single digits 2.45% - 2.55% Financial Targets Efficiency Ratio Fee Income Growth Expenses Mid 60% area High-single digits $66MM - $68MM per quarter Operating Assumptions CET1 TCE / TA Tax Rate High 10% to 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 stabilizing with potential modest expansion beginning in 2Q 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 22

 
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, loss on FHLB redemption, contingent payment expense, severance expense, pension settlement expense, investment securities gains, and gain on asset sales, 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 (Dollars in thousands) 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 Pre-tax pre-provision income (Non-GAAP) . Pre-tax pre-provision income: $ 51,253 $ 24,745 $ 20,746 $ 26,100 $ 20,372 Net income Plus/(less) non-GAAP adjustments: Income taxes 17,231 8,711 6,890 8,459 6,944 Provision/(credit) for credit losses (21,536) 5,055 2,365 (3,445) 2,388 Pre-tax pre-provision net income $ 46,948 $ 38,511 $ 30,001 $ 31,114 $ 29,704 Efficiency ratio - GAAP basis . Non-interest expenses $ 66,305 $ 69,136 $ 72,471 $ 67,142 $ 68,006 Net interest income plus non-interest income 113,253 107,647 102,472 98,256 97,710 Efficiency ratio - GAAP basis 58.55% 64.22% 70.72% 68.33% 69.60% Efficiency ratio - Non-GAAP basis Non-interest expenses $ 66,305 $ 69,136 $ 72,471 $ 67,142 $ 68,006 Less non-GAAP adjustments: Amortization of intangible assets 1,306 1,269 1,245 1,403 2,069 Severance expense — 1,939 — — — Pension settlement expense — — 8,157 — — Contingent payment expense 36 — — — — Non-interest expenses - as adjusted $ 64,963 $ 65,928 $ 63,069 $ 65,739 $ 65,937 Net interest income plus non-interest income $ 113,253 $ 107,647 $ 102,472 $ 98,256 $ 97,710 Plus non-GAAP adjustment: Tax-equivalent income 970 1,006 1,068 1,113 1,099 Less non-GAAP adjustments: Investment securities gains/(losses) — — — — — Net interest income plus non-interest income - as adjusted $ 114,223 $ 108,653 $ 103,540 $ 99,369 $ 98,809 Efficiency ratio - Non-GAAP basis 56.87% 60.68% 60.91% 66.16% 66.73% 25

 
Tangible Common Equity-QTD (Dollars in thousands except per share data) 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 Tangible common equity ratio: Total stockholders' equity $ 1,536,865 $ 1,539,032 $ 1,537,914 $ 1,588,142 $ 1,589,364 Goodwill (363,436) (363,436) (363,436) (363,436) (363,436) Other intangible assets, net (18,549) (17,280) (16,035) (28,301) (29,864) Tangible common equity $ 1,154,880 $ 1,158,316 $ 1,158,443 $ 1,196,405 $ 1,196,064 Total assets $ 14,129,007 $ 13,994,545 $ 14,135,085 $ 14,028,172 $ 13,888,133 Goodwill (363,436) (363,436) (363,436) (363,436) (363,436) Other intangible assets, net (18,549) (17,280) (16,035) (28,301) (29,864) Tangible assets $ 13,747,022 $ 13,613,829 $ 13,755,614 $ 13,636,435 $ 13,494,833 Common shares outstanding 44,712,497 44,862,369 44,895,158 44,913,561 44,940,147 Tangible common equity ratio 8.40 % 8.51 % 8.42 % 8.77 % 8.86 % Book value per common share $ 34.37 $ 34.31 $ 34.26 $ 35.36 $ 35.37 Tangible book value per common share $ 25.83 $ 25.82 $ 25.80 $ 26.64 $ 26.61 26

 
Core Earnings - QTD (Dollars in thousands except per share data) 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 Core Earnings: Net income(GAAP) $ 51,253 $ 24,745 $ 20,746 $ 26,100 $ 20,372 Plus/(less) non-GAAP adjustments (net of tax): Amortization of intangible assets 973 946 932 1,047 1,544 Severance Expense — 1,445 — — — Pension settlement expense — — 6,088 — — Contingent payment expense 27 — — — — Core earnings (non-GAAP) $ 52,253 $ 27,136 $ 27,766 $ 27,147 $ 21,916 Core return on average assets (non-GAAP) Average assets (GAAP) $13,949,276 $14,094,653 $14,086,342 $14,090,423 $14,061,935 Return on average assets (GAAP) 1.49 % 0.70 % 0.58 % 0.73 % 0.58 % Core return on average assets (non-GAAP) 1.52 % 0.77 % 0.78 % 0.76 % 0.63 % Weighted average common shares outstanding - diluted (GAAP) 44,872,582 44,888,759 44,960,455 45,009,574 45,086,471 Earning per diluted common share (GAAP) $ 1.14 $ 0.55 $ 0.46 $ 0.58 $ 0.45 Core earnings per diluted common share (non-GAAP) $ 1.16 $ 0.60 $ 0.62 $ 0.60 $ 0.49 27

 
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