Exhibit 99.1

NEWS RELEASE

FOR IMMEDIATE RELEASE

SANDY SPRING BANCORP REPORTS RECORD QUARTERLY EARNINGS OF $56.7 MILLION

Fourth Quarter Earnings Increase 27% over Prior Quarter and Drive Annual Net Income to $97.0 Million

OLNEY, MARYLAND, January 21, 2021 — Sandy Spring Bancorp, Inc., (Nasdaq-SASR), the parent company of Sandy Spring Bank, today reported record net income of $56.7 million ($1.19 per diluted common share)for the fourth quarter of 2020. The current quarter’s result compares to net income of $28.5 million ($0.80 per diluted common share) for the fourth quarter of 2019 and net income of $44.6 million ($0.94 per diluted common share) for the third quarter of 2020.

Operating earnings for the current quarter, which exclude the impact of the provision for credit losses, the effects from the Paycheck Protection Program (“PPP” or “PPP program”) and merger and acquisition expense, each on an after-tax basis, were $48.2 million ($1.02 per diluted common share), compared to $30.4 million ($0.85 per diluted common share) for the quarter ended December 31, 2019 and $45.8 million ($0.97 per diluted common share) for the quarter ended September 30, 2020.

The provision for credit losses for the current quarter was a credit of $4.5 million as compared to a charge of $7.0 million for the third quarter of 2020. The decrease in the provision for credit losses compared to the prior quarter is mainly the result of changes in macroeconomic factors, primarily the reduction in projected near term business bankruptcies as indicated in the most recent economic forecast.

“In 2020 we completed a significant integration of Revere Bank while navigating a global pandemic and helping our clients through unprecedented challenges. This was a massive undertaking, especially in a remote work environment, but our newly combined institutions were unified in our efforts to serve our clients and to keep people safe,” said Daniel J. Schrider, President and Chief Executive Officer. “Given our strong operating results and the resilience we demonstrated throughout the year, we remain very optimistic about our future.”

Fourth Quarter Highlights:

•Total assets at December 31, 2020, grew 48% to $12.8 billion compared to December 31, 2019, primarily as a result of the Revere Bank (“Revere”) acquisition and participation in the PPP. During the past year, loans and deposits grew by 55% and 56%, respectively. On the date of acquisition, Revere’s loans and deposits were $2.5 billion and $2.3 billion, respectively. The Company originated $1.1 billion in commercial business loans through its participation in the PPP program.

•The net interest margin was 3.38% for the fourth quarter of 2020, compared to 3.38% for the same quarter of 2019, and 3.24% for the third quarter of 2020. Excluding the impact of the amortization of the fair value marks derived from acquisitions, the current quarter’s net interest margin would have been 3.31%, compared to 3.34% for fourth quarter of 2019, and 3.18% for the third quarter of 2020.

•The provision for credit losses was a credit of $4.5 million for the current quarter. The credit to the provision for the current quarter as compared to the prior quarter’s provision charge of $7.0 million is primarily the result of the reduction in forecasted business bankruptcies impacted by governmental support programs aimed at individuals and small businesses.

•Non-interest income for the current quarter increased by 68% or $13.0 million compared to the prior year quarter as a result of a 248% increase in income from mortgage banking activities and growth of 28% in wealth management income as a result of the acquisition of Rembert Pendleton Jackson (“RPJ”) in the first quarter of the current year.

•Non-interest expense increased $15.6 million or 34% for the fourth quarter of 2020 compared to the prior year quarter. This increase was driven by the impact of the acquisitions of Revere and RPJ, which increased compensation and operational costs, in addition to intangible asset amortization. FDIC insurance cost increased from the same period of the prior year as a result of the effect of the assessment credit received during the prior year quarter.

•Return on average assets (“ROA”) for the quarter ended December 31, 2020 was 1.78% and return on average tangible common equity (“ROTCE”) was 22.24%. This compares to ROA of 1.32% and ROTCE of 14.39% for the prior year. The non-GAAP efficiency ratio for the fourth quarter of 2020 was 45.09% compared to 51.98% for the fourth quarter of 2019.

Branch Rationalization

The Company announced its intention to close three branch locations in 2021. The affected branches are located in Northern Virginia (2) and Montgomery County (1) Maryland. Customer accounts will be consolidated into nearby locations. The changes come into effect as a part of the Company’s continuing analysis of its branch network, including usage, proximity to other Sandy Spring Bank offices and the needs of the Company’s customers. The branch closures are expected to be completed in the second quarter of 2021.

Response to COVID-19

Protecting the health and well-being of its employees and clients in addition to assisting clients who have been impacted by the pandemic remains the focus of the Company. A significant majority of non-branch employees continue to work remotely and clients are served at branches primarily through drive-thru facilities and limited lobby access. Area jurisdictions continue to monitor and modify their respective guidelines based on the metrics of the pandemic. Currently, the Company is maintaining the first phase of its return to work plan.

During the current quarter, the Company began accepting digital PPP forgiveness applications. The Company has paused extending invitations to its forgiveness application portal pending updates to reflect recent amendments to the PPP program and to focus on accepting loan applications for both first and second draw loans under the restarted program.

During 2020, the Company has granted payment modifications/deferrals on 2,575 loans with and aggregate balance of $2.1 billion of which 203 loans with an aggregate balance of $217 million remain in deferral status. Currently, the vast majority of loans that had been granted modifications/deferrals have returned to their original payment plans without a significant impact on payment delinquencies.

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

Balance Sheet and Credit Quality

Total assets grew to $12.8 billion at December 31, 2020, as compared to $8.6 billion at December 31, 2019. Year-over-year asset growth was primarily the result of the acquisition of Revere during the year, as well as the Company’s participation in the PPP program. During this period, total loans grew by 55% to $10.4 billion at December 31, 2020, compared to $6.7 billion at December 31, 2019. Excluding PPP loans, total loans grew 39% to $9.3 billion at December 31, 2020 as compared to the prior year quarter. The acquisition of Revere drove the majority of the increase in commercial loans, which, excluding PPP loans, grew 52% or $2.6 billion. The residential mortgage loan portfolio remained stable year-over-year as the vast majority of loan originations during the past year were sold in the secondary market. Consumer loan growth during the year was 11%, also a result of the acquisition. Deposit growth was 56% during the past twelve months, as noninterest-bearing deposits experienced growth of 76% and interest-bearing deposits grew 47%. This growth was driven primarily by the Revere acquisition and, to a lesser extent, the PPP program.

Tangible common equity increased to $1.0 billion or 8.46% of tangible assets at December 31, 2020 compared to $782.3 million or 9.46% at December 31, 2019, as a result of the equity issuance in the Revere acquisition. The year-over-year change in tangible common equity also reflects the effects of the repurchase of $50 million of common stock and the increase in intangible assets and goodwill associated with the two acquisitions completed during the past twelve months. Excluding the impact of the PPP program from tangible assets at December 31, 2020, the tangible common equity ratio would be 9.25%.At December 31, 2020, the Company had a total risk-based capital ratio of 13.93%, a common equity tier 1 risk-based capital ratio of 10.58%, a tier 1 risk-based capital ratio of 10.58% and a tier 1 leverage ratio of 8.92%.

The level of non-performing loans to total loans increased to 1.11% at December 31, 2020, compared to 0.62% at December 31, 2019, and 0.72% at September 30, 2020. At December 31, 2020, non-performing loans totaled $115.5 million, compared to $41.3 million at December 31, 2019, and $74.7 million at September 30, 2020. Non-performing loans include non-accrual loans, accruing loans 90 days or more past due and restructured loans. The year-over-year growth in non-performing loans was driven

by three major components: loans placed in non-accrual status, acquired Revere non-accrual loans, and loans previously accounted for as purchased credit impaired loans that have been designated as non-accrual loans as a result of the Company’s adoption of the accounting standard for expected credit losses at the beginning of the year. Loans placed on non-accrual during the current quarter amounted to $54.7 million compared to $5.4 million for the prior year quarter and $0.9 million for the third quarter of 2020. Loans placed on non-accrual status during the current quarter relate primarily to a limited number of large borrowing relationships within the hospitality sector. These large relationships are collateral dependent and required no individual reserves due to sufficient values of the underlying collateral.

The Company recorded net charge-offs of $0.5 million for the fourth quarter of 2020, as compared to net charge-offs of $0.5 million and $0.2 million for the fourth quarter of 2019 and third quarter of 2020, respectively.

At December 31, 2020, the allowance for credit losses was $165.4 million or 1.59% of outstanding loans and 143% of non-performing loans, compared to $170.3 million or 1.65% of outstanding loans and 228% of non-performing loans at September 30, 2020.

Income Statement Review

Quarterly Results

Net interest income for the fourth quarter of 2020 increased 52% compared to the fourth quarter of 2019, driven primarily by the acquisition of Revere. The PPP program and its associated funding contributed a net of $6.9 million to net interest income for the quarter. The net interest margin remained unchanged at 3.38% for the fourth quarter of 2020 as compared to the same quarter of the prior year. Excluding the net $2.3 million impact of the amortization of the fair value marks derived from acquisitions, the net interest margin for the current quarter would have been 3.31%.This compares to the adjusted net interest margin of 3.34% for the fourth quarter of 2019.

The provision for credit losses was a credit of $4.5 million for the fourth quarter of 2020, compared to a charge of $1.7 million for the fourth quarter of 2019, and $7.0 million for the third quarter of 2020. The credit in the current quarter’s provision for credit losses, compared to the provision charge recorded in the prior quarter, is primarily the result of an improvement in the forecasted business bankruptcies indicated in the most recent economic forecast.

Non-interest income increased $13.0 million or 68% during the current quarter compared to the same quarter of the prior year. As a result of the significant decline in lending rates, mortgage origination activity for new and refinanced mortgages resulted in income from mortgage banking activities increasing by $10.3 million during the current quarter compared to the prior year quarter. In addition, wealth management income increased $1.8 million as a result of the first quarter acquisition of RPJ. The growth of these two categories in non-interest income more than compensated for the decline in service fee income compared to the prior year quarter.

Non-interest expense increased 34% or $15.6 million compared to the prior year quarter. Excluding the impact of merger and acquisition expense, non-interest expense grew 37% year-over-year, primarily as a result of the operational costs of the Revere and RPJ acquisitions, increased compensation expense related to staffing increases and incentive compensation, in addition to an increase in FDIC insurance and the amortization of intangible assets.

The non-GAAP efficiency ratio was 45.09% for the current quarter as compared to 51.98% for the fourth quarter of 2019, and 45.27% for the third quarter of 2020. The decrease in the efficiency ratio (reflecting an increase in efficiency) from the fourth quarter of last year to the current year was the result of the $47.2 million growth in non-GAAP revenue outpacing the $15.4 million growth in non-GAAP non-interest expense.

Year to Date Results

The Company recorded net income of $97.0 million for the year ended December 31, 2020 compared to $116.4 million for the prior year, representing a 17% decrease. The net earnings for the current year included the effects of the initial implementation of the accounting standard for current expected credit losses, the impact of the pandemic on the provision for credit losses, which resulted in a significant provision in the second quarter, and the impact of the acquisitions of RPJ and Revere. Pre-tax, pre-provision, pre-merger income was $235.3 million for the year ended December 31, 2020 compared to $158.9 million for the prior year.

Net interest income for the year ended December 31, 2020 increased 37% or $97.9 million compared to the prior year. This increase was driven primarily by the acquisition of Revere in the second quarter of 2020. Additionally, the income generated by

the PPP program, net of its associated funding costs, contributed a net of $19.0 million to the growth in net interest income year-over-year. The net interest margin declined to 3.35% for the year ended December 31, 2020, compared to 3.51% for the prior year. Excluding the net $12.7 million impact of the amortization of the fair value marks derived from acquisitions, the net interest margin for the current year would have been 3.23%.The amortization of the fair value marks recognized during the current year included a benefit realized from the accelerated amortization of the $5.9 million purchase premium on acquired FHLB advances as a result of the prepayment of those borrowings. The net interest margin for 2019, excluding the amortization of fair value marks, would have been 3.46%.

The provision for credit losses for the full year of 2020 amounted to $85.7 million as compared to $4.7 million for the same period in 2019. The provision for credit losses under the CECL standard reflects the combined results of the impact of the deteriorated economic forecasts during the year ($44.1 million) and the initial allowance on acquired Revere non-purchased credit deteriorated loans ($17.5 million). The change in the portfolio mix and various qualitative adjustments resulted in the remainder of provision growth for the period.

Non-interest income increased 44% to $102.7 million for 2020 compared to $71.3 million for 2019. During the current year income from mortgage banking activities increased $25.3 million as a result of the high levels of new mortgage and refinancing activity resulting from historically low mortgage lending rates, and wealth management income increased $7.9 million as a result of the first quarter acquisition of RPJ. These increases more than exceeded the declines in deposit service fees and BOLI income.

Non-interest expense increased 43% to $255.8 million for 2020, compared to $179.1 million for 2019. Merger and acquisition expense accounted for $23.9 million of the growth of non-interest expense. The non-interest expense growth also included $5.9 million in prepayment penalties resulting from the liquidation of acquired FHLB borrowings. Excluding the impact of these items results in a year-over-year growth rate of 26%. This growth rate was driven by operational and compensation costs associated with the Revere and RPJ acquisitions, increased incentive expense related to the significant level of mortgage loan originations, increased intangible asset amortization, higher FDIC insurance premiums and annual employee merit increases.

The effective tax rate for the year ended December 31, 2020 was 22.1%, compared to 23.8% for the same period in 2019. This decrease was the result of the recent changes to tax laws that expanded the time permitted to utilize previous net operating losses. The Company applied this change to the 2018 acquisition of WashingtonFirst Bankshares, Inc. to realize a tax benefit of $1.8 million for the current year.

The non-GAAP efficiency ratio for the current year was 46.53% compared to 51.52% for the prior year. The improvement in the current year’s efficiency ratio compared to the prior year was the result of the growth in non-GAAP revenue, which outpaced the growth in non-GAAP non-interest expense.

Explanation of Non-GAAP Financial Measures

This news release contains financial information and performance measures determined by methods other than in accordance with generally accepted accounting principles in the United States (“GAAP”). The 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 intangible assets.

•The non-GAAP efficiency ratio is non-GAAP in that it excludes amortization of intangible assets, loss on FHLB redemption, merger and acquisition expense and securities gains and includes tax-equivalent income.

•Operating earnings - and the related measures of operating earnings per share, operating return on average assets and operating return on average tangible common equity - reflect net income exclusive of the provision for credit losses, merger and acquisition expense and the income and expense associated with the PPP program, in each case net of tax.

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

Conference Call

The Company’s management will host a conference call to discuss its fourth quarter results today at 2:00 p.m. (ET). A live Webcast of the conference call is available through the Investor Relations section of the Sandy Spring Website at www.sandyspringbank.com. Participants may call 1-866-235-9910. A password is not necessary. Visitors to the Website are

advised to log on 10 minutes ahead of the scheduled start of the call. An internet-based replay will be available on the website until 9:00 am (ET) February 4, 2021. A replay of the teleconference will be available through the same time period by calling 1-877-344-7529 under conference call number 10150939.

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 60 locations, the bank offers a broad range of commercial and retail banking, mortgage, private banking, and trust services throughout Maryland, Northern Virginia, and Washington, D.C. Through its subsidiaries, Rembert Pendleton Jackson, Sandy Spring Insurance Corporation and West Financial Services, Inc., Sandy Spring Bank also offers a comprehensive menu of insurance and wealth management services.

For additional information or questions, please contact:

Daniel J. Schrider, President & Chief Executive Officer, or

Philip J. Mantua, E.V.P. & Chief Financial 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

301-570-8331

jschell@sandyspringbank.com

Forward-Looking Statements

Sandy Spring Bancorp’s forward-looking statements are subject to the following principal risks and uncertainties: risks, uncertainties and other factors relating to the COVID-19 pandemic, including the length of time that the pandemic continues, the imposition or re-imposition of stay-at-home orders and restrictions on business activities or travel; the effect of the pandemic on the general economy and on the businesses of our borrowers and their ability to make payments on their obligations; the remedial actions and stimulus measures adopted by federal, state and local governments; the inability of employees to work due to illness, quarantine, or government mandates; general economic conditions and trends, either nationally or locally; conditions in the securities markets; changes in interest rates; changes in deposit flows, and in the demand for deposit, loan, and investment products and other financial services; changes in real estate values; changes in the quality or composition of the Company’s loan or investment portfolios; changes in competitive pressures among financial institutions or from non-financial institutions; the Company’s ability to retain key members of management; changes in legislation, regulations, and policies; the possibility that any of the anticipated benefits of acquisitions will not be realized or will not be realized within the expected time period; and a variety of other matters which, by their nature, are subject to significant uncertainties. Sandy Spring Bancorp provides greater detail regarding some of these factors in its Form 10-K for the year ended December 31, 2019, including in the Risk Factors section of that report, and in its other SEC reports. Sandy Spring 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 December 31,						% Change		Year Ended December 31,						% Change
(Dollars in thousands, except per share data)	2020			2019					2020			2019
Results of operations:
Net interest income	$	99,827		$	65,583		52	%	$	363,159		$	265,308		37	%
Provision/ (credit) for credit losses	(4,489)			1,655			n/m		85,669			4,684			n/m
Non-interest income	32,234			19,224			68		102,716			71,322			44
Non-interest expense	61,661			46,081			34		255,782			179,085			43
Income before income tax expense	74,889			37,071			102		124,424			152,861			(19)
Net income	56,662			28,457			99		96,953			116,433			(17)
Net income attributable to common shareholders	$	56,194		$	28,273		99		$	96,170		$	115,671		(17)
Pre-tax pre-provision pre-merger income (1)	$	70,403		$	39,674		77		$	235,267		$	158,857		48
Return on average assets	1.78		%	1.32		%			0.82		%	1.39		%
Return on average common equity	15.72		%	9.93		%			7.24		%	10.51		%
Return on average tangible common equity	22.24		%	14.39		%			10.38		%	15.33		%
Net interest margin	3.38		%	3.38		%			3.35		%	3.51		%
Efficiency ratio - GAAP basis (2)	46.69		%	54.34		%			54.90		%	53.20		%
Efficiency ratio - Non-GAAP basis (2)	45.09		%	51.98		%			46.53		%	51.52		%
Per share data:
Basic net income per common share	$	1.19		$	0.80		49	%	$	2.19		$	3.25		(33)	%
Diluted net income per common share	$	1.19		$	0.80		49		$	2.18		$	3.25		(33)
Weighted average diluted common shares	47,284,808			35,543,254			33		44,132,251			35,617,924			24
Dividends declared per share	$	0.30		$	0.30		—		$	1.20		$	1.18		2
Book value per common share	$	31.24		$	32.40		(4)		$	31.24		$	32.40		(4)
Tangible book value per common share (1)	$	22.28		$	22.37		—		$	22.28		$	22.37		—
Outstanding common shares	47,056,777			34,970,370			35		47,056,777			34,970,370			35
Financial condition at period-end:
Investment securities	$	1,413,781		$	1,125,136		26	%	$	1,413,781		$	1,125,136		26	%
Loans	10,400,509			6,705,232			55		10,400,509			6,705,232			55
Interest-earning assets	12,095,936			7,947,703			52		12,095,936			7,947,703			52
Assets	12,798,429			8,629,002			48		12,798,429			8,629,002			48
Deposits	10,033,069			6,440,319			56		10,033,069			6,440,319			56
Interest-bearing liabilities	7,856,842			5,485,055			43		7,856,842			5,485,055			43
Stockholders' equity	1,469,955			1,132,974			30		1,469,955			1,132,974			30
Capital ratios:
Tier 1 leverage (3)	8.92		%	9.70		%			8.92		%	9.70		%
Common equity tier 1 capital to risk-weighted assets (3)	10.58		%	11.06		%			10.58		%	11.06		%
Tier 1 capital to risk-weighted assets (3)	10.58		%	11.21		%			10.58		%	11.21		%
Total regulatory capital to risk-weighted assets (3)	13.93		%	14.85		%			13.93		%	14.85		%
Tangible common equity to tangible assets (4)	8.46		%	9.46		%			8.46		%	9.46		%
Average equity to average assets	11.34		%	13.31		%			11.38		%	13.25		%
Credit quality ratios:
Allowance for credit losses to loans	1.59		%	0.84		%			1.59		%	0.84		%
Non-performing loans to total loans	1.11		%	0.62		%			1.11		%	0.62		%
Non-performing assets to total assets	0.91		%	0.50		%			0.91		%	0.50		%
Allowance for credit losses to non-performing loans	143.23		%	136.02		%			143.23		%	136.02		%
Annualized net charge-offs to average loans (5)	0.02		%	0.03		%			0.01		%	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 Consolidated Statements of Income. The traditional efficiency ratio - Non-GAAP basis excludes intangible asset amortization, loss on FHLB redemption, and merger and acquisition expense from non-interest expense; securities gains from non-interest income and adds the tax- equivalent adjustment to net interest income. See the Reconciliation Table included with these Financial Highlights.

(3)Estimated ratio at December 31, 2020.

(4)The tangible common equity to tangible assets ratio is a non-GAAP ratio that divides assets excluding intangible assets into stockholders' equity after deducting intangible assets and other comprehensive gains/ (losses). See the Reconciliation Table included with these Financial Highlights.

(5)Calculation utilizes average loans, excluding residential mortgage loans held-for-sale.

Sandy Spring Bancorp, Inc. and Subsidiaries

RECONCILIATION TABLE - UNAUDITED

	Three Months Ended December 31,						Year Ended December 31,
(Dollars in thousands)	2020			2019			2020			2019
Pre-tax pre-provision pre-merger income:
Net income	$	56,662		$	28,457		$	96,953		$	116,433
Plus non-GAAP adjustments:
Merger and acquisition expense	3			948			25,174			1,312
Income tax expense	18,227			8,614			27,471			36,428
Provision/ (credit) for credit losses	(4,489)			1,655			85,669			4,684
Pre-tax pre-provision pre-merger income	$	70,403		$	39,674		$	235,267		$	158,857
Efficiency ratio - GAAP basis:
Non-interest expense	$	61,661		$	46,081		$	255,782		$	179,085
Net interest income plus non-interest income	$	132,061		$	84,807		$	465,875		$	336,630
Efficiency ratio - GAAP basis	46.69		%	54.34		%	54.90		%	53.20		%
Efficiency ratio - Non-GAAP basis:
Non-interest expense	$	61,661		$	46,081		$	255,782		$	179,085
Less non-GAAP adjustments:
Amortization of intangible assets	1,655			481			6,221			1,946
Loss on FHLB redemption	—			—			5,928			—
Merger and acquisition expense	3			948			25,174			1,312
Non-interest expense - as adjusted	$	60,003		$	44,652		$	218,459		$	175,827
Net interest income plus non-interest income	$	132,061		$	84,807		$	465,875		$	336,630
Plus non-GAAP adjustment:
Tax-equivalent income	1,052			1,149			4,128			4,746
Less non-GAAP adjustment:
Investment securities gains	35			57			467			77
Net interest income plus non-interest income - as adjusted	$	133,078		$	85,899		$	469,536		$	341,299
Efficiency ratio - Non-GAAP basis	45.09		%	51.98		%	46.53		%	51.52		%
Tangible common equity ratio:
Total stockholders' equity	$	1,469,955		$	1,132,974		$	1,469,955		$	1,132,974
Accumulated other comprehensive (income)/ loss	(18,705)			4,332			(18,705)			4,332
Goodwill	(370,223)			(347,149)			(370,223)			(347,149)
Other intangible assets, net	(32,521)			(7,841)			(32,521)			(7,841)
Tangible common equity	$	1,048,506		$	782,316		$	1,048,506		$	782,316
Total assets	$	12,798,429		$	8,629,002		$	12,798,429		$	8,629,002
Goodwill	(370,223)			(347,149)			(370,223)			(347,149)
Other intangible assets, net	(32,521)			(7,841)			(32,521)			(7,841)
Tangible assets	$	12,395,685		$	8,274,012		$	12,395,685		$	8,274,012
Tangible common equity ratio	8.46		%	9.46		%	8.46		%	9.46		%
Outstanding common shares	47,056,777			34,970,370			47,056,777			34,970,370
Tangible book value per common share	$	22.28		$	22.37		$	22.28		$	22.37

Sandy Spring Bancorp, Inc. and Subsidiaries

RECONCILIATION TABLE - UNAUDITED (CONTINUED)

OPERATING EARNINGS - METRICS

	Three Months Ended December 31,						Year Ended December 31,
(Dollars in thousands)	2020			2019			2020			2019
Operating earnings (non-GAAP):
Net income	$	56,662		$	28,457		$	96,953		$	116,433
Plus non-GAAP adjustments:
Provision/ (credit) for credit losses - net of tax	(3,343)			1,205			63,789			3,460
Merger and acquisition expense - net of tax	3			698			18,745			969
PPPLF funding expense - net of tax	122			—			829			—
Less non-GAAP adjustment:
PPP interest income and net deferred fee - net of tax	5,239			—			14,948			—
Operating earnings (Non-GAAP)	$	48,205		$	30,360		$	165,368		$	120,862
Operating earnings per common share (non-GAAP):
Weighted average common shares outstanding - diluted (GAAP)	47,284,808			35,543,254			44,132,251			35,617,924
Earnings per diluted common share (GAAP)	$	1.19		$	0.80		$	2.18		$	3.25
Operating earnings per diluted common share (non-GAAP)	$	1.02		$	0.85		$	3.75		$	3.39
Operating return on average assets (non-GAAP):
Average assets (GAAP)	$	12,645,329		$	8,542,837		$	11,775,096		$	8,367,139
Average PPP loans	(1,060,995)			—			(710,264)			—
Adjusted average assets (non-GAAP)	$	11,584,334		$	8,542,837		$	11,064,832		$	8,367,139
Return on average assets (GAAP)	1.78		%	1.32		%	0.82		%	1.39		%
Operating return on adjusted average assets (non-GAAP)	1.66		%	1.41		%	1.49		%	1.44		%
Operating return on average tangible common equity (non-GAAP):
Average total stockholders' equity (GAAP)	$	1,433,900		$	1,136,824		$	1,339,491		$	1,108,310
Average accumulated other comprehensive (income)/ loss	(16,398)			3,005			(11,326)			7,069
Average goodwill	(370,419)			(347,149)			(365,543)			(347,149)
Average other intangible assets, net	(33,675)			(8,146)			(28,357)			(8,873)
Average tangible common equity (non-GAAP)	$	1,013,408		$	784,534		$	934,265		$	759,357
Return on average tangible common equity (GAAP)	22.24		%	14.39		%	10.38		%	15.33		%
Operating return on average tangible common equity (non-GAAP)	18.92		%	15.35		%	17.70		%	15.92		%

Sandy Spring Bancorp, Inc. and Subsidiaries

CONDENSED CONSOLIDATED STATEMENTS OF CONDITION - UNAUDITED

(Dollars in thousands)	December 31, 2020		December 31, 2019
Assets
Cash and due from banks	$	93,651	$	82,469
Federal funds sold	291		208
Interest-bearing deposits with banks	203,061		63,426
Cash and cash equivalents	297,003		146,103
Residential mortgage loans held for sale (at fair value)	78,294		53,701
Investments available-for-sale (at fair value)	1,348,021		1,073,333
Other equity securities	65,760		51,803
Total loans	10,400,509		6,705,232
Less: allowance for credit losses	(165,367)		(56,132)
Net loans	10,235,142		6,649,100
Premises and equipment, net	57,720		58,615
Other real estate owned	1,455		1,482
Accrued interest receivable	46,431		23,282
Goodwill	370,223		347,149
Other intangible assets, net	32,521		7,841
Other assets	265,859		216,593
Total assets	$	12,798,429	$	8,629,002
Liabilities
Noninterest-bearing deposits	$	3,325,547	$	1,892,052
Interest-bearing deposits	6,707,522		4,548,267
Total deposits	10,033,069		6,440,319
Securities sold under retail repurchase agreements and federal funds purchased	543,157		213,605
Advances from FHLB	379,075		513,777
Subordinated debentures	227,088		209,406
Total borrowings	1,149,320		936,788
Accrued interest payable and other liabilities	146,085		118,921
Total liabilities	11,328,474		7,496,028
Stockholders' equity
Common stock -- par value $1.00; shares authorized 100,000,000; shares issued and outstanding 47,056,777 and 34,970,370 at December 31, 2020 and December 31, 2019, respectively	47,057		34,970
Additional paid in capital	846,922		586,622
Retained earnings	557,271		515,714
Accumulated other comprehensive income/ (loss)	18,705		(4,332)
Total stockholders' equity	1,469,955		1,132,974
Total liabilities and stockholders' equity	$	12,798,429	$	8,629,002

Sandy Spring Bancorp, Inc. and Subsidiaries

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED

	Three Months Ended December 31,				Year Ended December 31,
(Dollars in thousands, except per share data)	2020		2019		2020		2019
Interest income:
Interest and fees on loans	$	104,756	$	77,522	$	393,477	$	316,550
Interest on loans held for sale	592		462		1,686		1,607
Interest on deposits with banks	27		724		446		2,129
Interest and dividends on investment securities:
Taxable for federal income taxes	4,866		5,437		22,136		21,739
Exempt from federal income taxes	1,550		1,243		5,814		5,834
Interest on federal funds sold	—		2		1		10
Total interest income	111,791		85,390		423,560		347,869
Interest Expense:
Interest on deposits	6,410		14,723		41,651		61,681
Interest on retail repurchase agreements and federal funds purchased	234		216		1,965		1,161
Interest on advances from FHLB	2,730		3,189		6,593		16,578
Interest on subordinated debt	2,590		1,679		10,192		3,141
Total interest expense	11,964		19,807		60,401		82,561
Net interest income	99,827		65,583		363,159		265,308
Provision/ (credit) for credit losses	(4,489)		1,655		85,669		4,684
Net interest income after provision/ (credit) for credit losses	104,316		63,928		277,490		260,624
Non-interest income:
Investment securities gains	35		57		467		77
Service charges on deposit accounts	1,917		2,427		7,066		9,692
Mortgage banking activities	14,491		4,170		40,058		14,711
Wealth management income	8,215		6,401		30,570		22,669
Insurance agency commissions	1,356		1,331		6,795		6,612
Income from bank owned life insurance	705		660		2,867		3,165
Bank card fees	1,570		1,435		5,672		5,616
Other income	3,945		2,743		9,221		8,780
Total non-interest income	32,234		19,224		102,716		71,322
Non-interest expense:
Salaries and employee benefits	36,080		26,251		134,471		103,950
Occupancy expense of premises	5,236		4,663		21,383		19,470
Equipment expenses	3,121		2,791		12,224		10,720
Marketing	1,058		1,085		4,281		4,456
Outside data services	2,394		1,854		8,759		7,567
FDIC insurance	1,527		123		4,727		2,260
Amortization of intangible assets	1,655		481		6,221		1,946
Merger and acquisition expense	3		948		25,174		1,312
Professional fees and services	2,473		2,553		7,939		6,978
Other expenses	8,114		5,332		30,603		20,426
Total non-interest expense	61,661		46,081		255,782		179,085
Income before income tax expense	74,889		37,071		124,424		152,861
Income tax expense	18,227		8,614		27,471		36,428
Net income	$	56,662	$	28,457	$	96,953	$	116,433
Net income per share amounts:
Basic net income per common share	$	1.19	$	0.80	$	2.19	$	3.25
Diluted net income per common share	$	1.19	$	0.80	$	2.18	$	3.25
Dividends declared per share	$	0.30	$	0.30	$	1.20	$	1.18

Sandy Spring Bancorp, Inc. and Subsidiaries

HISTORICAL TRENDS - QUARTERLY FINANCIAL DATA - UNAUDITED

	2020												2019
(Dollars in thousands, except per share data)	Q4			Q3			Q2			Q1			Q4			Q3			Q2			Q1
Profitability for the quarter:
Tax-equivalent interest income	$	112,843		$	113,627		$	116,252		$	84,966		$	86,539		$	88,229		$	88,423		$	89,424
Interest expense	11,964			15,500			13,413			19,524			19,807			20,292			21,029			21,433
Tax-equivalent net interest income	100,879			98,127			102,839			65,442			66,732			67,937			67,394			67,991
Tax-equivalent adjustment	1,052			643			1,325			1,108			1,149			1,147			1,209			1,241
Provision/ (credit) for credit losses	(4,489)			7,003			58,686			24,469			1,655			1,524			1,633			(128)
Non-interest income	32,234			29,390			22,924			18,168			19,224			18,573			16,556			16,969
Non-interest expense	61,661			60,937			85,438			47,746			46,081			44,925			43,887			44,192
Income/ (loss) before income tax expense/ (benefit)	74,889			58,934			(19,686)			10,287			37,071			38,914			37,221			39,655
Income tax expense/ (benefit)	18,227			14,292			(5,348)			300			8,614			9,531			8,945			9,338
Net income/ (loss)	$	56,662		$	44,642		$	(14,338)		$	9,987		$	28,457		$	29,383		$	28,276		$	30,317
Financial performance:
Pre-tax pre-provision pre-merger income	$	70,403		$	67,200		$	61,454		$	36,210		$	39,674		$	40,802		$	38,854		$	39,527
Return on average assets	1.78		%	1.38		%	(0.45)		%	0.46		%	1.32		%	1.39		%	1.37		%	1.49		%
Return on average common equity	15.72		%	12.67		%	(4.15)		%	3.55		%	9.93		%	10.38		%	10.32		%	11.46		%
Return on average tangible common equity	22.24		%	18.16		%	(5.80)		%	5.36		%	14.39		%	15.13		%	15.10		%	16.82		%
Net interest margin	3.38		%	3.24		%	3.47		%	3.29		%	3.38		%	3.51		%	3.54		%	3.60		%
Efficiency ratio - GAAP basis (1)	46.69		%	48.03		%	68.66		%	57.87		%	54.34		%	52.63		%	53.04		%	52.79		%
Efficiency ratio - Non-GAAP basis (1)	45.09		%	45.27		%	43.85		%	54.76		%	51.98		%	50.95		%	51.71		%	51.44		%
Per share data:
Net income/ (loss) attributable to common shareholders	$	56,194		$	44,268		$	(14,458)		$	9,919		$	28,274		$	29,196		$	28,065		$	30,120
Basic net income/ (loss) per common share	$	1.19		$	0.94		$	(0.31)		$	0.29		$	0.80		$	0.82		$	0.79		$	0.85
Diluted net income/ (loss) per common share	$	1.19		$	0.94		$	(0.31)		$	0.28		$	0.80		$	0.82		$	0.79		$	0.85
Weighted average diluted common shares	47,284,808			47,175,071			46,988,351			34,743,623			35,543,254			35,671,721			35,634,924			35,618,346
Dividends declared per share	$	0.30		$	0.30		$	0.30		$	0.30		$	0.30		$	0.30		$	0.30		$	0.28
Non-interest income:
Securities gains	$	35		$	51		$	212		$	169		$	57		$	15		$	5		$	—
Service charges on deposit accounts	1,917			1,673			1,223			2,253			2,427			2,516			2,442			2,307
Mortgage banking activities	14,491			14,108			8,426			3,033			4,170			4,408			3,270			2,863
Wealth management income	8,215			7,785			7,604			6,966			6,401			5,493			5,539			5,236
Insurance agency commissions	1,356			2,122			1,188			2,129			1,331			2,116			1,265			1,900
Income from bank owned life insurance	705			708			809			645			660			662			654			1,189
Bank card fees	1,570			1,525			1,257			1,320			1,435			1,462			1,467			1,252
Other income	3,945			1,418			2,205			1,653			2,743			1,901			1,914			2,222
Total non-interest income	$	32,234		$	29,390		$	22,924		$	18,168		$	19,224		$	18,573		$	16,556		$	16,969
Non-interest expense:
Salaries and employee benefits	$	36,080		$	36,041		$	34,297		$	28,053		$	26,251		$	26,234		$	25,489		$	25,976
Occupancy expense of premises	5,236			5,575			5,991			4,581			4,663			4,816			4,760			5,231
Equipment expenses	3,121			3,133			3,219			2,751			2,791			2,641			2,712			2,576
Marketing	1,058			1,305			729			1,189			1,085			1,541			887			943
Outside data services	2,394			2,614			2,169			1,582			1,854			1,973			1,962			1,778
FDIC insurance	1,527			1,340			1,378			482			123			(83)			1,084			1,136
Amortization of intangible assets	1,655			1,968			1,998			600			481			491			483			491
Merger and acquisition expense	3			1,263			22,454			1,454			948			364			—			—
Professional fees and services	2,473			1,800			1,840			1,826			2,553			1,546			1,634			1,245
Other expenses	8,114			5,898			11,363			5,228			5,332			5,402			4,876			4,816
Total non-interest expense	$	61,661		$	60,937		$	85,438		$	47,746		$	46,081		$	44,925		$	43,887		$	44,192

(1) The efficiency ratio - GAAP basis is non-interest expense divided by net interest income plus non-interest income from the Condensed Consolidated Statements of Income. The traditional efficiency ratio - Non-GAAP basis excludes intangible asset amortization, loss on FHLB redemption, and merger and acquisition expense from non-interest expense; securities gains from non-interest income; and adds the tax- equivalent adjustment to net interest income. See the Reconciliation Table included with these Financial Highlights.

Sandy Spring Bancorp, Inc. and Subsidiaries

HISTORICAL TRENDS - QUARTERLY FINANCIAL DATA - UNAUDITED

	2020												2019
(Dollars in thousands, except per share data)	Q4			Q3			Q2			Q1			Q4			Q3			Q2			Q1
Balance sheets at quarter end:
Commercial investor real estate loans	$	3,634,720		$	3,588,702		$	3,581,778		$	2,241,240		$	2,169,156		$	2,036,021		$	1,994,027		$	1,962,879
Commercial owner-occupied real estate loans	1,642,216			1,652,208			1,601,803			1,305,682			1,288,677			1,278,505			1,224,986			1,216,713
Commercial AD&C loans	1,050,973			994,800			997,423			643,114			684,010			678,906			658,709			688,939
Commercial business loans	2,267,548			2,227,246			2,222,810			813,525			801,019			772,619			772,158			769,660
Residential mortgage loans	1,105,179			1,173,857			1,211,745			1,116,512			1,149,327			1,199,275			1,241,081			1,249,968
Residential construction loans	182,619			175,123			169,050			149,573			146,279			150,692			171,106			176,388
Consumer loans	517,254			521,999			558,434			453,346			466,764			480,530			489,176			505,443
Total loans	10,400,509			10,333,935			10,343,043			6,722,992			6,705,232			6,596,548			6,551,243			6,569,990
Allowance for credit losses	(165,367)			(170,314)			(163,481)			(85,800)			(56,132)			(54,992)			(54,024)			(53,089)
Loans held for sale	78,294			88,728			68,765			67,114			53,701			78,821			50,511			24,998
Investment securities	1,413,781			1,425,733			1,424,652			1,250,560			1,125,136			946,210			955,715			987,299
Interest-earning assets	12,095,936			11,965,915			12,447,146			8,222,589			7,947,703			7,742,138			7,713,364			7,648,654
Total assets	12,798,429			12,678,131			13,290,447			8,929,602			8,629,002			8,437,538			8,398,519			8,327,900
Noninterest-bearing demand deposits	3,325,547			3,458,804			3,434,038			1,939,937			1,892,052			2,081,435			2,023,614			1,813,708
Total deposits	10,033,069			9,964,969			10,076,834			6,593,874			6,440,319			6,493,899			6,389,749			6,224,523
Customer repurchase agreements	153,157			142,287			143,579			125,305			138,605			126,008			150,604			122,626
Total interest-bearing liabilities	7,856,842			7,643,381			8,313,546			5,732,349			5,485,055			5,093,265			5,136,860			5,297,108
Total stockholders' equity	1,469,955			1,424,749			1,390,093			1,116,334			1,132,974			1,140,041			1,119,445			1,095,848
Quarterly average balance sheets:
Commercial investor real estate loans	$	3,599,648		$	3,582,751		$	3,448,882		$	2,202,461		$	2,092,478		$	1,982,979		$	1,960,919		$	1,964,699
Commercial owner-occupied real estate loans	1,643,817			1,628,474			1,681,674			1,285,257			1,274,782			1,258,000			1,215,632			1,207,799
Commercial AD&C loans	1,017,304			977,607			969,251			659,494			695,817			651,905			686,282			676,205
Commercial business loans	2,189,828			2,207,388			1,899,264			819,133			765,159			786,150			756,594			780,318
Residential mortgage loans	1,136,989			1,189,452			1,208,566			1,139,786			1,169,623			1,215,132			1,244,086			1,230,319
Residential construction loans	180,494			173,280			162,978			145,266			149,690			162,196			174,095			189,720
Consumer loans	515,202			543,242			575,734			465,314			477,572			486,865			505,235			515,644
Total loans	10,283,282			10,302,194			9,946,349			6,716,711			6,625,121			6,543,227			6,542,843			6,564,704
Loans held for sale	68,255			54,784			53,312			35,030			50,208			61,870			37,121			17,846
Investment securities	1,418,683			1,404,238			1,398,586			1,179,084			1,002,692			941,048			964,863			1,010,940
Interest-earning assets	11,882,542			12,049,463			11,921,132			7,994,618			7,859,836			7,690,629			7,619,240			7,627,187
Total assets	12,645,329			12,835,893			12,903,156			8,699,342			8,542,837			8,370,789			8,294,883			8,258,116
Noninterest-bearing demand deposits	3,424,729			3,281,607			3,007,222			1,797,227			1,927,063			1,909,884			1,796,802			1,682,720
Total deposits	9,999,144			9,862,639			9,614,176			6,433,694			6,459,551			6,405,762			6,247,409			5,952,942
Customer repurchase agreements	146,685			142,694			144,050			135,652			126,596			138,736			141,865			129,059
Total interest-bearing liabilities	7,609,829			7,969,487			8,326,909			5,612,056			5,326,303			5,202,876			5,269,209			5,403,946
Total stockholders' equity	1,433,900			1,401,746			1,390,544			1,130,051			1,136,824			1,123,185			1,099,078			1,073,291
Financial measures:
Average equity to average assets	11.34		%	10.92		%	10.78		%	12.99		%	13.31		%	13.42		%	13.25		%	13.00		%
Investment securities to earning assets	11.69		%	11.91		%	11.45		%	15.21		%	14.16		%	12.22		%	12.39		%	12.91		%
Loans to earning assets	85.98		%	86.36		%	83.10		%	81.76		%	84.37		%	85.20		%	84.93		%	85.90		%
Loans to assets	81.26		%	81.51		%	77.82		%	75.29		%	77.71		%	78.18		%	78.00		%	78.89		%
Loans to deposits	103.66		%	103.70		%	102.64		%	101.96		%	104.11		%	101.58		%	102.53		%	105.55		%
Capital measures:
Tier 1 leverage (1)	8.92		%	8.65		%	8.35		%	8.78		%	9.70		%	9.96		%	9.80		%	9.61		%
Common equity tier 1 capital to risk-weighted assets (1)	10.58		%	10.45		%	10.23		%	10.23		%	11.06		%	11.37		%	11.43		%	11.19		%
Tier 1 capital to risk-weighted assets (1)	10.58		%	10.45		%	10.23		%	10.23		%	11.21		%	11.52		%	11.59		%	11.35		%
Total regulatory capital to risk-weighted assets (1)	13.93		%	14.02		%	13.79		%	14.09		%	14.85		%	12.70		%	12.79		%	12.54		%
Book value per common share	$	31.24		$	30.30		$	29.58		$	32.68		$	32.40		$	32.00		$	31.43		$	30.82
Outstanding common shares	47,056,777			47,025,779			47,001,022			34,164,672			34,970,370			35,625,822			35,614,953			35,557,110

(1) Estimated ratio at December 31, 2020.

Sandy Spring Bancorp, Inc. and Subsidiaries

LOAN PORTFOLIO QUALITY DETAIL - UNAUDITED

	2020								2019
(Dollars in thousands)	December 31,		September 30,		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	$	133	$	—	$	775	$	—	$	—	$	1,201	$	1,248	$	—
Commercial owner-occupied real estate	—		—		515		—		—		—		—		90
Commercial AD&C	—		—		—		—		—		—		—		—
Commercial business	161		93		—		—		—		17		—		—
Residential real estate:
Residential mortgage	480		320		138		8		—		—		—		221
Residential construction	—		—		—		—		—		—		—		—
Consumer	—		1		—		—		—		—		—		—
Total loans 90 days past due	774		414		1,428		8		—		1,218		1,248		311
Non-accrual loans:
Commercial real estate:
Commercial investor real estate	45,227		26,784		26,482		17,770		8,437		8,454		6,409		6,071
Commercial owner-occupied real estate	11,561		6,511		6,729		4,074		4,148		3,810		3,766		5,992
Commercial AD&C	15,044		1,678		2,957		829		829		829		1,990		3,306
Commercial business	22,933		17,659		20,246		10,834		8,450		6,393		7,083		8,013
Residential real estate:
Residential mortgage	10,212		11,296		11,724		12,271		12,661		12,574		10,625		9,704
Residential construction	—		—		—		—		—		—		—		156
Consumer	7,384		7,493		7,800		5,596		4,107		4,561		4,439		4,081
Total non-accrual loans	112,361		71,421		75,938		51,374		38,632		36,621		34,312		37,323
Total restructured loans - accruing	2,317		2,854		2,553		2,575		2,636		2,287		2,133		2,479
Total non-performing loans	115,452		74,689		79,919		53,957		41,268		40,126		37,693		40,113
Other assets and other real estate owned (OREO)	1,455		1,389		1,389		1,416		1,482		1,482		1,486		1,410
Total non-performing assets	$	116,907	$	76,078	$	81,308	$	55,373	$	42,750	$	41,608	$	39,179	$	41,523

	For the Quarter Ended,
(Dollars in thousands)	December 31, 2020			September 30, 2020			June 30, 2020			March 31, 2020			December 31, 2019			September 31, 2019			June 30, 2019			March 31, 2019
Analysis of non-accrual loan activity:
Balance at beginning of period	$	71,421		$	75,938		$	51,374		$	38,632		$	36,621		$	34,312		$	37,323		$	33,583
Purchased credit deteriorated loans designated as non-accrual	—			—			—			13,084			—			—			—			—
Non-accrual balances transferred to OREO	(70)			—			—			—			—			—			(195)			—
Non-accrual balances charged-off	(513)			(144)			(162)			(575)			(454)			(705)			(604)			(227)
Net payments or draws	(13,212)			(4,248)			(1,881)			(1,860)			(2,916)			(2,903)			(5,517)			(1,786)
Loans placed on non-accrual	54,735			893			27,289			2,369			5,381			6,015			3,396			6,202
Non-accrual loans brought current	—			(1,018)			(682)			(276)			—			(98)			(91)			(449)
Balance at end of period	$	112,361		$	71,421		$	75,938		$	51,374		$	38,632		$	36,621		$	34,312		$	37,323
Analysis of allowance for credit losses:
Balance at beginning of period	$	170,314		$	163,481		$	85,800		$	56,132		$	54,992		$	54,024		$	53,089		$	53,486
Transition impact of adopting ASC 326	—			—			—			2,983			—			—			—			—
Initial allowance on purchased credit deteriorated loans	—			—			—			2,762			—			—			—			—
Initial allowance on acquired PCD loans	—			—			18,628			—			—			—			—			—
Provision/ (credit) for credit losses	(4,489)			7,003			58,686			24,469			1,655			1,524			1,633			(128)
Less loans charged-off, net of recoveries:
Commercial real estate:
Commercial investor real estate	379			21			(4)			—			(3)			(3)			(3)			(7)
Commercial owner-occupied real estate	—			—			—			—			—			—			—			—
Commercial AD&C	—			—			—			—			—			(224)			(4)			—
Commercial business	56			88			(463)			108			15			389			735			7
Residential real estate:
Residential mortgage	37			(6)			15			333			264			209			(10)			89
Residential construction	(1)			(2)			(1)			(2)			(2)			(2)			(2)			(2)
Consumer	(13)			69			86			107			241			187			(18)			182
Net charge-offs/ (recoveries)	458			170			(367)			546			515			556			698			269
Balance at the end of period	$	165,367		$	170,314		$	163,481		$	85,800		$	56,132		$	54,992		$	54,024		$	53,089
Asset quality ratios:
Non-performing loans to total loans	1.11		%	0.72		%	0.77		%	0.80		%	0.62		%	0.61		%	0.58		%	0.61		%
Non-performing assets to total assets	0.91		%	0.60		%	0.61		%	0.62		%	0.50		%	0.49		%	0.47		%	0.50		%
Allowance for credit losses to loans	1.59		%	1.65		%	1.58		%	1.28		%	0.84		%	0.83		%	0.82		%	0.81		%
Allowance for credit losses to non-performing loans	143.23		%	228.03		%	204.56		%	159.02		%	136.02		%	137.05		%	143.33		%	132.35		%
Annualized net charge-offs/ (recoveries) to average loans	0.02		%	0.01		%	(0.01)		%	0.03		%	0.03		%	0.03		%	0.04		%	0.02		%

Sandy Spring Bancorp, Inc. and Subsidiaries

CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES - UNAUDITED

	Three Months Ended December 31,
	2020						2019
(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	$	3,599,648	$	38,867	4.30	%	$	2,092,478	$	24,982	4.74	%
Commercial owner-occupied real estate loans	1,643,817		19,440		4.70		1,274,782		15,606		4.86
Commercial AD&C loans	1,017,304		10,400		4.07		695,817		9,388		5.35
Commercial business loans	2,189,828		20,015		3.64		765,159		9,821		5.09
Total commercial loans	8,450,597		88,722		4.18		4,828,236		59,797		4.91
Residential mortgage loans	1,136,989		10,102		3.55		1,169,623		11,030		3.77
Residential construction loans	180,494		1,698		3.74		149,690		1,650		4.37
Consumer loans	515,202		4,806		3.71		477,572		5,594		4.65
Total residential and consumer loans	1,832,685		16,606		3.62		1,796,885		18,274		4.05
Total loans (2)	10,283,282		105,328		4.08		6,625,121		78,071		4.68
Loans held for sale	68,255		592		3.48		50,208		462		3.68
Taxable securities	1,138,767		4,925		1.73		816,008		5,704		2.79
Tax-exempt securities (3)	279,916		1,971		2.81		186,684		1,576		3.38
Total investment securities (4)	1,418,683		6,896		1.94		1,002,692		7,280		2.90
Interest-bearing deposits with banks	111,820		27		0.10		181,394		724		1.58
Federal funds sold	502		—		0.10		421		2		1.66
Total interest-earning assets	11,882,542		112,843		3.78		7,859,836		86,539		4.38
Less: allowance for credit losses	(171,026)						(54,653)
Cash and due from banks	111,565						68,011
Premises and equipment, net	58,060						59,277
Other assets	764,188						610,366
Total assets	$	12,645,329					$	8,542,837
Liabilities and Stockholders' Equity
Interest-bearing demand deposits	$	1,195,307	$	293	0.10	%	$	800,263	$	685	0.34	%
Regular savings deposits	406,637		57		0.06		325,540		94		0.11
Money market savings deposits	3,194,999		1,870		0.23		1,875,045		5,820		1.23
Time deposits	1,777,472		4,190		0.94		1,531,640		8,124		2.10
Total interest-bearing deposits	6,574,415		6,410		0.39		4,532,488		14,723		1.29
Other borrowings	377,362		234		0.25		133,716		216		0.64
Advances from FHLB	428,278		2,730		2.54		516,101		3,189		2.45
Subordinated debentures	229,774		2,590		4.51		143,998		1,679		4.66
Total borrowings	1,035,414		5,554		2.13		793,815		5,084		2.55
Total interest-bearing liabilities	7,609,829		11,964		0.63		5,326,303		19,807		1.48
Noninterest-bearing demand deposits	3,424,729						1,927,063
Other liabilities	176,871						152,647
Stockholders' equity	1,433,900						1,136,824
Total liabilities and stockholders' equity	$	12,645,329					$	8,542,837
Net interest income and spread			$	100,879	3.15	%			$	66,732	2.90	%
Less: tax-equivalent adjustment			1,052						1,149
Net interest income			$	99,827					$	65,583
Interest income/earning assets					3.78	%					4.38	%
Interest expense/earning assets					0.40						1.00
Net interest margin					3.38	%					3.38	%

(1)Tax-equivalent income has been adjusted using the combined marginal federal and state rate of 25.54% and 26.13% for 2020 and 2019, respectively. The annualized taxable-equivalent adjustments utilized in the above table to compute yields aggregated to $1.1 million in both 2020 and 2019.

(2)Non-accrual loans are included in the average balances.

(3)Includes only investments that are exempt from federal taxes.

(4)Available for sale investments are presented at amortized cost.

Sandy Spring Bancorp, Inc. and Subsidiaries

CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES - UNAUDITED

	Year Ended December 31,
	2020						2019
(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	$	3,210,527	$	142,105	4.43	%	$	2,000,571	$	99,410	4.97	%
Commercial owner-occupied real estate loans	1,560,223		73,655		4.72		1,239,289		60,581		4.89
Commercial AD&C loans	906,414		40,262		4.44		677,536		39,241		5.79
Commercial business loans	1,781,197		69,633		3.91		772,052		41,300		5.35
Total commercial loans	7,458,361		325,655		4.37		4,689,448		240,532		5.13
Residential mortgage loans	1,168,668		43,001		3.68		1,214,625		46,438		3.82
Residential construction loans	165,567		6,683		4.04		168,797		7,232		4.28
Consumer loans	524,897		20,356		3.88		496,199		24,391		4.92
Total residential and consumer loans	1,859,132		70,040		3.77		1,879,621		78,061		4.15
Total loans (2)	9,317,493		395,695		4.25		6,569,069		318,593		4.85
Loans held for sale	52,893		1,686		3.19		41,905		1,607		3.84
Taxable securities	1,106,315		22,482		2.03		768,521		22,873		2.98
Tax-exempt securities (3)	244,168		7,378		3.02		211,236		7,403		3.50
Total investment securities (4)	1,350,483		29,860		2.21		979,757		30,276		3.09
Interest-bearing deposits with banks	246,155		446		0.18		108,534		2,129		1.96
Federal funds sold	403		1		0.28		572		10		1.76
Total interest-earning assets	10,967,427		427,688		3.90		7,699,837		352,615		4.58
Less: allowance for credit losses	(128,793)						(53,746)
Cash and due from banks	122,826						65,181
Premises and equipment, net	59,031						60,595
Other assets	754,605						595,272
Total assets	$	11,775,096					$	8,367,139
Liabilities and Stockholders' Equity
Interest-bearing demand deposits	$	1,062,474	$	1,812	0.17	%	$	750,606	$	1,990	0.27	%
Regular savings deposits	374,196		269		0.07		329,158		415		0.13
Money market savings deposits	2,741,230		12,424		0.45		1,751,989		25,437		1.45
Time deposits	1,924,429		27,146		1.41		1,604,996		33,839		2.11
Total interest-bearing deposits	6,102,329		41,651		0.68		4,436,749		61,681		1.39
Other borrowings	509,523		1,965		0.39		152,088		1,161		0.76
Advances from FHLB	545,652		6,593		1.21		645,587		16,578		2.57
Subordinated debentures	224,306		10,192		4.54		64,251		3,141		4.89
Total borrowings	1,279,481		18,750		1.47		861,926		20,880		2.42
Total interest-bearing liabilities	7,381,810		60,401		0.82		5,298,675		82,561		1.56
Noninterest-bearing demand deposits	2,880,294						1,830,008
Other liabilities	173,501						130,146
Stockholders' equity	1,339,491						1,108,310
Total liabilities and stockholders' equity	$	11,775,096					$	8,367,139
Net interest income and spread			$	367,287	3.08	%			$	270,054	3.02	%
Less: tax-equivalent adjustment			4,128						4,746
Net interest income			$	363,159					$	265,308
Interest income/earning assets					3.90	%					4.58	%
Interest expense/earning assets					0.55						1.07
Net interest margin					3.35	%					3.51	%

(1)Tax-equivalent income has been adjusted using the combined marginal federal and state rate of 25.54% and 26.13% for 2020 and 2019, respectively. The annualized taxable-equivalent adjustments utilized in the above table to compute yields aggregated to $4.1 million and $4.7 million in 2020 and 2019, respectively.

(2)Non-accrual loans are included in the average balances.

(3)Includes only investments that are exempt from federal taxes.

(4)Available-for-sale investments are presented at amortized cost.