8-K

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): October 21, 2021

SANDY SPRING BANCORP, INC.

(Exact name of registrant as specified in its charter)

Maryland	000-19065	52-1532952
(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 class	Trading Symbol(s)	Name of exchange on which registered
Common Stock, par value $1.00 per share	SASR	The 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 2.02 Results of Operations and Financial Condition

On October 21, 2021, Sandy Spring Bancorp, Inc. (the “Company”) issued a news release announcing its results of operations and financial condition for the quarter ended September 30, 2021. A copy of the news release is included as Exhibit 99.1 to this report.

Item 7.01 Regulation FD Disclosure

The Company is providing supplemental information regarding its loan portfolio 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 9.01 Financial Statements and Exhibits

Exhibits.
Exhibit No.	Description
99.1	Press release dated October 21, 2021
99.2	Supplemental Information dated October 21, 2021
104	Cover 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: October 21, 2021	By:	/s/ Daniel J. Schrider
		Daniel J. Schrider
		President and Chief Executive Officer

EX-99.1

Exhibit 99.1

NEWS RELEASE

FOR IMMEDIATE RELEASE

SANDY SPRING BANCORP REPORTS $57.0 MILLION IN QUARTERLY EARNINGS

Earnings Performance Remains Strong

OLNEY, MARYLAND, October 21, 2021 — Today Sandy Spring Bancorp, Inc., (Nasdaq-SASR), the parent company of Sandy Spring Bank, reported net income of $57.0 million ($1.20 per diluted common share)for the quarter ended September 30, 2021. The current quarter compares to $44.6 million ($0.94 per diluted common share) for the third quarter of 2020 and net income of $57.3 million ($1.19 per diluted common share) for the second quarter of 2021. The results for the current quarter reflect the positive impact of the significant decline in interest expense and a credit to the provision for credit losses, which more than offset a decline in non-interest income and an increase in non-interest expense compared to the third quarter of the prior year.

Core earnings, which exclude the impact of the provision for credit losses and provision on unfunded loan commitments, merger and acquisition expense, loss on FHLB redemptions, amortization of intangibles and investment securities gains, each on an after-tax basis, for the current quarter were $52.0 million ($1.10 per diluted common share), compared to $52.1 million ($1.10 per diluted common share) for the quarter ended September 30, 2020 and $55.1 million ($1.16 per diluted common share) for the quarter ended June 30, 2021.

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

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

Third Quarter Highlights:

•Core earnings for the third quarter of 2021 were $52.0 million and $52.1 million for the prior year quarter as the increase in net interest income during the current quarter was offset by lower non-interest income and increased non-interest expense compared to the third quarter of 2020.

•At September 30, 2021, total assets were $13.0 billion, a 3% increase compared to $12.7 billion at September 30, 2020. This increase year-over-year was the result of the $889.8 million growth in cash and cash equivalents, primarily as a result of the funds received from the forgiveness of PPP loans, which declined $601.6 million during the same period. Excluding PPP loans, the total loan portfolio remained at $9.3 billion at September 30, 2021 compared to September 30, 2020, due to the combined run-off of $326.9 million of residential mortgage and consumer loans offset by the year-over-year commercial loan growth of $315.9 million or 4%.

•Year-over-year deposits increased 10%, driven by 15% growth in noninterest-bearing deposits and 8% growth in interest-bearing deposits.

•During the past twelve months, time deposits declined $359.4 million and borrowings of $820.6 million were eliminated. The reduction in borrowings included the redemption of $31 million of 5.65% subordinated debt acquired as part of the Revere Bank ("Revere") acquisition and $25 million of 4.75% subordinated debt acquired as part of the WashingtonFirst Bankshares, Inc. ("WashingtonFirst") acquisition.

•For the third quarter of 2021, the net interest margin was 3.52%, compared to 3.24% for the same quarter of 2020, and 3.63% for the second quarter of 2021. Excluding the impact of the amortization of the fair value marks derived

from acquisitions, the current quarter’s net interest margin would have been 3.49%, compared to 3.18% for third quarter of 2020, and 3.60% for the second quarter of 2021. Solely excluding the impact of PPP loans, the current quarter’s net interest margin would have been 3.35%, compared to 3.30% for the third quarter of 2020, and 3.52% for the second quarter of 2021.

•The provision for credit losses was a credit of $8.2 million for the current quarter compared to the prior quarter’s credit to the provision of $4.2 million. The credit to the provision for the current quarter was the result of the continued improvement in forecasted economic variables, in addition to the impact of updated metrics applied in the determination of the allowance for credit losses.

•Non-interest income for the current quarter decreased by 17% or $5.0 million compared to the prior year quarter. The decline was the direct result of the 65% decline in income from mortgage banking activities, which exceeded the 21% growth in wealth management income, a 26% increase in service charges on deposit accounts and 16% growth in bank card fees. Other non-interest income grew by 113% compared to the prior year quarter as a result of increases in credit related fees and activity-based contractual vendor incentives.

•Non-interest expense increased $2.2 million or 4% for the third quarter of 2021, compared to the prior year quarter. This increase was driven by increases in compensation costs, professional fees and other non-interest expense, which were partially offset by the lack of merger and acquisition expense during the current quarter and a significant reduction in FDIC insurance.

•Return on average assets (“ROA”) for the quarter ended September 30, 2021 was 1.75% and return on average tangible common equity (“ROTCE”) was 19.56% compared to 1.79% and 20.44%, respectively, for the second quarter of 2021. On a non-GAAP basis, the current quarter's core ROA was 1.60% and core ROTCE was 17.85% compared to core ROA of 1.73% and core ROTCE of 19.68% for the prior quarter of 2021.

•For the third quarter of 2021, the GAAP efficiency ratio was 48.23% compared to 48.03% for the third quarter of 2020, and 46.89% for the second quarter of 2021. The non-GAAP efficiency ratio for the third quarter of 2021 was 46.67% compared to 45.36% for the second quarter of 2021.

•During the quarter, the Company repurchased 1,261,828 shares of its common stock at an average price of $43.04 per share. Under the current authorization, 1,038,172 common shares remain available to be repurchased.

Balance Sheet and Credit Quality

Total assets grew 3% to $13.0 billion at September 30, 2021, as compared to $12.7 billion at September 30, 2020. During this period, total loans declined by 6% to $9.7 billion at September 30, 2021, compared to $10.3 billion at September 30, 2020. Excluding PPP loans, total loans at September 30, 2021 remained at $9.3 billion, as compared to the prior year quarter. During the past twelve months, the activity in the loan portfolio reflected the net reduction of loans originated under the PPP program of $601.6 million and a $261.9 million decline in the residential mortgage loan portfolio, which was partially offset by year-over-year non-PPP commercial loan growth of $315.9 million or 4%. The year-over-year decline in the mortgage loan portfolio resulted from mortgage loan refinance activity driven by the low interest rate environment and the strategic decision to sell the majority of new mortgage loan production.

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

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

Tangible common equity increased to $1.1 billion or 9.10% of tangible assets at September 30, 2021, compared to $1.0 billion or 8.31% at September 30, 2020 as a result of accumulated earnings over the preceding twelve months. Excluding the impact of the PPP program from tangible assets at September 30, 2021, the tangible common equity ratio would be 9.44%.At September 30, 2021, the Company had a total risk-based capital ratio of 15.26%, a common equity tier 1 risk-based capital ratio of 12.50%, a tier 1 risk-based capital ratio of 12.50%, and a tier 1 leverage ratio of 9.23%.

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

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

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

Income Statement Review

Quarterly Results

The Company recorded net income of $57.0 million for the three months ended September 30, 2021, compared to net income of $44.6 million for the prior year quarter. The results for the current quarter reflect the positive impact of the significant decline in interest expense and the credit to the provision for credit losses, which more than offset the decline in non-interest income and an increase in non-interest expense compared to the third quarter of the prior year. Pre-tax, pre-provision, pre-merger income was $67.8 million for the three months ended September 30, 2021 compared to $67.2 million for the prior year quarter.

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

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

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

of certain service fees as well as lower transaction volume, both a resulting reaction to the Covid-19 pandemic. Bank card fees grew compared to the prior year quarter driven by transaction volume.

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

For the third quarter of 2021, the GAAP efficiency ratio was 48.23% compared to 48.03% for the third quarter of 2020, and 46.89% for the second quarter of 2021. The non-GAAP efficiency ratio was 46.67% for the current quarter as compared to 45.27% for the third quarter of 2020, and 45.36% for the second quarter of 2021. The modest increase in the efficiency ratio (reflecting an decrease in efficiency) from the third quarter of the prior year to the current year quarter was the result of the 7% growth in non-GAAP non-interest expense outpacing the 3% growth in non-GAAP revenue. ROA for the quarter ended September 30, 2021 was 1.75% and ROTCE was 19.56% compared to 1.79% and 20.44%, respectively, for the second quarter of 2021. On a non-GAAP basis, the current quarter's core ROA was 1.60% and core ROTCE was 17.85% compared to core ROA of 1.73% and core ROTCE of 19.68% for the prior quarter of 2021.

Year to Date Results

The Company recorded net income of $189.7 million for the nine months ended September 30, 2021 compared to net income of $40.3 million for the same period in the prior year. Pre-tax, pre-provision, pre-merger income was $204.5 million for the nine months ended September 30, 2021 compared to $164.9 million for the prior year. The current year benefited from increased net interest income of $55.9 million, a $47.1 million credit to the provision for credit losses, and a $9.0 million increase in non-interest income driven primarily by wealth management income and other non-interest income. The prior year's results reflected the combined impact of merger and acquisition expense associated with the Revere acquisition, the impact of the Covid-19 pandemic on economic forecast used in the determination of the allowance for credit losses and the additional provision for credit losses associated with the acquisition of Revere during that period.

Net interest income for the nine months ended September 30, 2021 increased 21% or $55.9 million compared to the prior year as net interest income was driven by the increase in interest income from the commercial loan portfolio and the overall decrease in interest expense during the current year. These positive impacts were partially offset by the decrease in interest income on the investment securities and the mortgage and consumer loans portfolios. Contributing to the growth in net interest income, the PPP program generated $35.6 million, net of its associated funding costs, year-over-year. The net interest margin improved to 3.57% for the nine months ended September 30, 2021, compared to 3.33% for the prior year. Excluding the net $4.6 million impact of the amortization of the fair value marks derived from acquisitions, the net interest margin for the current year would have been 3.52%. The net interest margin for 2020, excluding the amortization of fair value marks, would have been 3.21%.

The provision for credit losses for the nine months ended September 30, 2021 amounted to a credit of $47.1 million as compared to a charge of $90.2 million for the same period in 2020. For the nine months ended September 30, 2021, the credit for the provision for credit losses, compared to the prior year's charge to the provision, reflects the impact of the continued improvement in forecasted economic metrics, notably the rate of unemployment, anticipated business bankruptcies and the housing price index.These decreases were partially offset by qualitative factors applied in the determination of the allowance. The charge to the provision for credit losses for the same period in 2020 predominantly reflected the combined results of the impact of the deteriorated economic forecasts during the first half of 2020 and the initial allowance on acquired Revere non-purchased credit deteriorated loans.

Non-interest income increased 13% to $79.5 million for the nine months ended September 30, 2021, compared to $70.5 million for 2020. During the current year, wealth management income increased $4.9 million year over year as a result of the acquisition of RPJ in the first quarter of 2020, in addition to the $699 million growth in assets under management and the increase in the client base during the past twelve months. Service charge income also increased 15% as customer activity increased. As a result of increased transaction volume, bank card fees grew 24% compared to the prior year period. Other non-interest income also grew significantly compared to the prior year as a result of the combination of the full payoff of a purchased credit deteriorated loan, credit related fees and activity-based contractual vendor incentives. Income from mortgage banking activities decreased during the year compared to the prior year.

Non-interest expense was $194.3 million for the nine months ended September 30, 2021, compared to $194.1 million for 2020. The current year included $9.1 million in prepayment penalties on FHLB borrowings compared to $5.9 million in prepayment penalties in the prior year. The prior year included $25.2 million in merger and acquisition expense. Excluding the impact of these items results in a year-over-year growth rate in non-interest expense of 14%. This growth rate was driven by operational and compensation costs associated with the 2020 acquisitions, staffing increases and professional fees and services associated with certain strategic initiatives, increased incentive expense associated with mortgage lending and other volume based activities, increased intangible asset amortization, marketing and outside data services cost.

The effective tax rate for the nine months ended September 30, 2021 was 24.60%, compared to a tax rate of 18.66% for the same period in 2020. The current year's effective tax rate reflects a more normalized rate while the prior year's rate reflected the favorable result of the changes to tax laws in 2020 that expanded the time permitted to utilize previous net operating losses. The Company applied this change to the 2018 acquisition of WashingtonFirst to realize a tax benefit of $1.8 million for 2020, resulting in a greater proportional benefit from the operating income in the first nine months of 2020.

For the nine months ended September 30, 2021, the GAAP efficiency ratio was 48.73% compared to 58.15% for the same period in 2020. The non-GAAP efficiency ratio for the first nine months of the current year was 44.88% compared to 47.10% for the same period in the prior year. The improvement in the current year’s non-GAAP efficiency ratio compared to the prior year was the result of the 19% growth in non-GAAP revenue, which outpaced the 14% growth in non-GAAP non-interest expense.

Explanation of Non-GAAP Financial Measures

This news release contains financial information and performance measures determined by methods other than in accordance with generally accepted accounting principles in the United States (“GAAP”). The 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, loss on FHLB redemption, merger and acquisition expense and investment securities gains and includes tax-equivalent income.

•Core earnings and the related measures of core earnings per diluted common share, core return on average assets and core return on average tangible common equity reflect net income exclusive of the provision/(credit) for credit losses, provision/(credit) for credit losses on unfunded loan commitments, merger and acquisition expense, amortization of intangible assets, loss on FHLB redemption, and investment securities gains, on a net of tax basis.

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

Conference Call

The Company’s management will host a conference call to discuss its third quarter results today at 2:00 p.m. (ET). A live Webcast of the conference call is available through the Investor Relations section of the Sandy Spring Website at www.sandyspringbank.com. Participants may call 1-844-200-6205. Please use the following access code: 896716. Visitors to the Website are advised to log on 10 minutes ahead of the scheduled start of the call. An internet-based replay will be available on the website until November 4, 2021. A replay of the teleconference will be available through the same time period by calling 1-866-813-9403 under conference call number 472010.

About Sandy Spring Bancorp, Inc.

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

For additional information or questions, please contact:

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

Philip J. Mantua, E.V.P. & Chief Financial 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 effect of the pandemic on our borrowers and their ability to make payments on their obligations, the effectiveness of vaccination programs, and the effect of remedial actions and stimulus measures adopted by federal, state and local governments; general economic conditions and trends, either nationally or locally; conditions in the securities markets; changes in interest rates; changes in deposit flows, and in the demand for deposit, loan, and investment products and other financial services; changes in real estate values; changes in the quality or composition of the 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, 2020, 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 September 30,						% Change		Nine Months Ended September 30,						% Change
(Dollars in thousands, except per share data)	2021			2020					2021			2020
Results of operations:
Net interest income	$	106,604		$	97,484		9	%	$	319,250		$	263,332		21	%
Provision/ (credit) for credit losses	(8,229)			7,003			(218)	%	(47,141)			90,158			(152)	%
Non-interest income	24,394			29,390			(17)		79,519			70,482			13
Non-interest expense	63,181			60,937			4		194,329			194,121			—
Income before income tax expense	76,046			58,934			29		251,581			49,535			408
Net income	56,976			44,642			28		189,703			40,291			371
Net income attributable to common shareholders	$	56,622		$	44,268		28		$	188,484		$	39,974		372
Pre-tax pre-provision pre-merger income (1)	$	67,817		$	67,200		1		$	204,485		$	164,864		24
Return on average assets	1.75		%	1.38		%			1.98		%	0.47		%
Return on average common equity	14.54		%	12.67		%			16.70		%	4.12		%
Return on average tangible common equity	19.56		%	17.84		%			22.68		%	5.87		%
Net interest margin	3.52		%	3.24		%			3.57		%	3.33		%
Efficiency ratio - GAAP basis (2)	48.23		%	48.03		%			48.73		%	58.15		%
Efficiency ratio - Non-GAAP basis (2)	46.67		%	45.27		%			44.88		%	47.10		%
Per share data:
Basic net income per common share	$	1.21		$	0.94		29	%	$	4.00		$	0.93		330	%
Diluted net income per common share	$	1.20		$	0.94		28		$	3.98		$	0.93		328
Weighted average diluted common shares	47,086,824			47,175,071			—		47,315,725			43,070,672			10
Dividends declared per share	$	0.32		$	0.30		7		$	0.96		$	0.90		7
Book value per common share	$	33.52		$	30.30		11		$	33.52		$	30.30		11
Tangible book value per common share (1)	$	24.90		$	21.69		15		$	24.90		$	21.69		15
Outstanding common shares	46,119,074			47,025,779			(2)		46,119,074			47,025,779			(2)
Financial condition at period-end:
Investment securities	$	1,470,652		$	1,425,733		3	%	$	1,470,652		$	1,425,733		3	%
Loans	9,721,348			10,333,935			(6)		9,721,348			10,333,935			(6)
Interest-earning assets	12,245,374			11,965,915			2		12,245,374			11,965,915			2
Assets	13,017,464			12,678,131			3		13,017,464			12,678,131			3
Deposits	10,987,400			9,964,969			10		10,987,400			9,964,969			10
Interest-bearing liabilities	7,320,132			7,643,381			(4)		7,320,132			7,643,381			(4)
Stockholders' equity	1,546,060			1,424,749			9		1,546,060			1,424,749			9
Capital ratios:
Tier 1 leverage (3)	9.23		%	8.65		%			9.23		%	8.65		%
Common equity tier 1 capital to risk-weighted assets (3)	12.50		%	10.45		%			12.50		%	10.45		%
Tier 1 capital to risk-weighted assets (3)	12.50		%	10.45		%			12.50		%	10.45		%
Total regulatory capital to risk-weighted assets (3)	15.26		%	14.02		%			15.26		%	14.02		%
Tangible common equity to tangible assets (4)	9.10		%	8.31		%			9.10		%	8.31		%
Average equity to average assets	12.07		%	10.92		%			11.84		%	11.39		%
Credit quality ratios:
Allowance for credit losses to loans	1.11		%	1.65		%			1.11		%	1.65		%
Non-performing loans to total loans	0.80		%	0.72		%			0.80		%	0.72		%
Non-performing assets to total assets	0.61		%	0.60		%			0.61		%	0.60		%
Allowance for credit losses to non-performing loans	138.06		%	228.03		%			138.06		%	228.03		%
Annualized net charge-offs to average loans (5)	0.31		%	0.01		%			0.14		%	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 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 September 30, 2021.

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

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

Sandy Spring Bancorp, Inc. and Subsidiaries

RECONCILIATION TABLE - UNAUDITED

	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in thousands)	2021			2020			2021			2020
Pre-tax pre-provision pre-merger income:
Net income	$	56,976		$	44,642		$	189,703		$	40,291
Plus/ (less) non-GAAP adjustments:
Merger and acquisition expense	—			1,263			45			25,171
Income tax expense	19,070			14,292			61,878			9,244
Provision/ (credit) for credit losses	(8,229)			7,003			(47,141)			90,158
Pre-tax pre-provision pre-merger income	$	67,817		$	67,200		$	204,485		$	164,864
Efficiency ratio (GAAP):
Non-interest expense	$	63,181		$	60,937		$	194,329		$	194,121
Net interest income plus non-interest income	$	130,998		$	126,874		$	398,769		$	333,814
Efficiency ratio (GAAP)	48.23		%	48.03		%	48.73		%	58.15		%
Efficiency ratio (Non-GAAP):
Non-interest expense	$	63,181		$	60,937		$	194,329		$	194,121
Less non-GAAP adjustments:
Amortization of intangible assets	1,635			1,968			4,991			4,566
Loss on FHLB redemption	—			—			9,117			5,928
Merger and acquisition expense	—			1,263			45			25,171
Non-interest expense - as adjusted	$	61,546		$	57,706		$	180,176		$	158,456
Net interest income plus non-interest income	$	130,998		$	126,874		$	398,769		$	333,814
Plus non-GAAP adjustment:
Tax-equivalent income	931			643			2,841			3,076
Less non-GAAP adjustment:
Investment securities gains	49			51			178			432
Net interest income plus non-interest income - as adjusted	$	131,880		$	127,466		$	401,432		$	336,458
Efficiency ratio (Non-GAAP)	46.67		%	45.27		%	44.88		%	47.10		%
Tangible common equity ratio:
Total stockholders' equity	$	1,546,060		$	1,424,749		$	1,546,060		$	1,424,749
Goodwill	(370,223)			(370,549)			(370,223)			(370,549)
Other intangible assets, net	(27,531)			(34,175)			(27,531)			(34,175)
Tangible common equity	$	1,148,306		$	1,020,025		$	1,148,306		$	1,020,025
Total assets	$	13,017,464		$	12,678,131		$	13,017,464		$	12,678,131
Goodwill	(370,223)			(370,549)			(370,223)			(370,549)
Other intangible assets, net	(27,531)			(34,175)			(27,531)			(34,175)
Tangible assets	$	12,619,710		$	12,273,407		$	12,619,710		$	12,273,407
Tangible common equity ratio	9.10		%	8.31		%	9.10		%	8.31		%
Outstanding common shares	46,119,074			47,025,779			46,119,074			47,025,779
Tangible book value per common share	$	24.90		$	21.69		$	24.90		$	21.69

Sandy Spring Bancorp, Inc. and Subsidiaries

RECONCILIATION TABLE - UNAUDITED (CONTINUED)

OPERATING EARNINGS - METRICS

	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in thousands)	2021			2020			2021			2020
Core earnings (non-GAAP):
Net income	$	56,976		$	44,642		$	189,703		$	40,291
Plus/ (less) non-GAAP adjustments (net of tax):
Provision/ (credit) for credit losses	(6,065)			5,140			(35,054)			67,132
Provision/ (credit) for credit losses on unfunded loan commitments	(64)			—			(950)			—
Merger and acquisition expense	—			919			33			18,742
Amortization of intangible assets	1,211			1,463			3,711			3,400
Loss on FHLB redemption	—			—			6,779			4,414
Investment securities gains	(36)			(38)			(132)			(322)
Core earnings (Non-GAAP)	$	52,022		$	52,126		$	164,090		$	133,657
Core earnings per common share (non-GAAP):
Weighted average common shares outstanding - diluted (GAAP)	47,086,824			47,175,071			47,315,725			43,070,672
Earnings per diluted common share (GAAP)	$	1.20		$	0.94		$	3.98		$	0.93
Core earnings per diluted common share (non-GAAP)	$	1.10		$	1.10		$	3.47		$	3.10
Core return on average assets (non-GAAP):
Average assets (GAAP)	$	12,886,460		$	12,835,893		$	12,827,195		$	11,483,477
Return on average assets (GAAP)	1.75		%	1.38		%	1.98		%	0.47		%
Core return on average assets (non-GAAP)	1.60		%	1.62		%	1.71		%	1.55		%
Core return on average tangible common equity (non-GAAP):
Average total stockholders' equity (GAAP)	$	1,554,765		$	1,401,746		$	1,518,881		$	1,307,791
Average goodwill	(370,223)			(370,548)			(370,223)			(363,906)
Average other intangible assets, net	(28,600)			(35,470)			(30,228)			(26,572)
Average tangible common equity (non-GAAP)	$	1,155,942		$	995,728		$	1,118,430		$	917,313
Return on average tangible common equity (GAAP)	19.56		%	17.84		%	22.68		%	5.87		%
Core return on average tangible common equity (non-GAAP)	17.85		%	20.83		%	19.62		%	19.46		%

Sandy Spring Bancorp, Inc. and Subsidiaries

CONDENSED CONSOLIDATED STATEMENTS OF CONDITION - UNAUDITED

(Dollars in thousands)	September 30, 2021		December 31, 2020		September 30, 2020
Assets
Cash and due from banks	$	105,937	$	93,651	$	107,364
Federal funds sold	352		291		390
Interest-bearing deposits with banks	1,008,344		203,061		117,129
Cash and cash equivalents	1,114,633		297,003		224,883
Residential mortgage loans held for sale (at fair value)	44,678		78,294		88,728
Investments available-for-sale (at fair value)	1,429,555		1,348,021		1,357,205
Other equity securities	41,097		65,760		68,528
Total loans	9,721,348		10,400,509		10,333,935
Less: allowance for credit losses	(107,920)		(165,367)		(170,314)
Net loans	9,613,428		10,235,142		10,163,621
Premises and equipment, net	58,362		57,720		58,738
Other real estate owned	1,105		1,455		1,389
Accrued interest receivable	36,219		46,431		48,176
Goodwill	370,223		370,223		370,549
Other intangible assets, net	27,531		32,521		34,175
Other assets	280,633		265,859		262,139
Total assets	$	13,017,464	$	12,798,429	$	12,678,131
Liabilities
Noninterest-bearing deposits	$	3,987,411	$	3,325,547	$	3,458,804
Interest-bearing deposits	6,999,989		6,707,522		6,506,165
Total deposits	10,987,400		10,033,069		9,964,969
Securities sold under retail repurchase agreements and federal funds purchased	147,504		543,157		462,706
Advances from FHLB	—		379,075		444,210
Subordinated debt	172,639		227,088		230,300
Total borrowings	320,143		1,149,320		1,137,216
Accrued interest payable and other liabilities	163,861		146,085		151,197
Total liabilities	11,471,404		11,328,474		11,253,382
Stockholders' equity
Common stock -- par value $1.00; shares authorized 100,000,000; shares issued and outstanding 46,119,074, 47,056,777 and 47,025,779 at September 30, 2021, December 31, 2020 and September 30, 2020, respectively	46,119		47,057		47,026
Additional paid in capital	799,766		846,922		845,399
Retained earnings	701,301		557,271		514,831
Accumulated other comprehensive income/ (loss)	(1,126)		18,705		17,493
Total stockholders' equity	1,546,060		1,469,955		1,424,749
Total liabilities and stockholders' equity	$	13,017,464	$	12,798,429	$	12,678,131

Sandy Spring Bancorp, Inc. and Subsidiaries

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED

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

Sandy Spring Bancorp, Inc. and Subsidiaries

HISTORICAL TRENDS - QUARTERLY FINANCIAL DATA - UNAUDITED

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

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

Sandy Spring Bancorp, Inc. and Subsidiaries

HISTORICAL TRENDS - QUARTERLY FINANCIAL DATA - UNAUDITED

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

(1) Estimated ratio at September 30, 2021.

Sandy Spring Bancorp, Inc. and Subsidiaries

LOAN PORTFOLIO QUALITY DETAIL - UNAUDITED

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

	For the Quarter Ended,
(Dollars in thousands)	September 30, 2021			June 30, 2021			March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020			March 31, 2020
Analysis of non-accrual loan activity:
Balance at beginning of period	$	91,399		$	96,000		$	112,361		$	71,421		$	75,938		$	51,374		$	38,632
Purchased credit deteriorated loans designated as non-accrual	—			—			—			—			—			—			13,084
Non-accrual balances transferred to OREO	—			(257)			—			(70)			—			—			—
Non-accrual balances charged-off	(7,171)			(2,166)			(699)			(513)			(144)			(162)			(575)
Net payments or draws	(36,526)			(3,693)			(16,028)			(13,212)			(4,248)			(1,881)			(1,860)
Loans placed on non-accrual	5,699			1,515			421			54,735			893			27,289			2,369
Non-accrual loans brought current	(286)			—			(55)			—			(1,018)			(682)			(276)
Balance at end of period	$	53,115		$	91,399		$	96,000		$	112,361		$	71,421		$	75,938		$	51,374
Analysis of allowance for credit losses:
Balance at beginning of period	$	123,961		$	130,361		$	165,367		$	170,314		$	163,481		$	85,800		$	56,132
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	(8,229)			(4,204)			(34,708)			(4,489)			7,003			58,686			24,469
Less loans charged-off, net of recoveries:
Commercial real estate:
Commercial investor real estate	5,797			(144)			(27)			379			21			(4)			—
Commercial owner-occupied real estate	136			—			—			—			—			—			—
Commercial AD&C	2,007			—			—			—			—			—			—
Commercial business	(53)			2,359			634			56			88			(463)			108
Residential real estate:
Residential mortgage	(49)			(11)			(270)			37			(6)			15			333
Residential construction	(2)			(1)			—			(1)			(2)			(1)			(2)
Consumer	(24)			(7)			(39)			(13)			69			86			107
Net charge-offs/ (recoveries)	7,812			2,196			298			458			170			(367)			546
Balance at the end of period	$	107,920		$	123,961		$	130,361		$	165,367		$	170,314		$	163,481		$	85,800
Asset quality ratios:
Non-performing loans to total loans	0.80		%	0.93		%	0.94		%	1.11		%	0.72		%	0.77		%	0.80		%
Non-performing assets to total assets	0.61		%	0.74		%	0.78		%	0.91		%	0.60		%	0.61		%	0.62		%
Allowance for credit losses to loans	1.11		%	1.23		%	1.25		%	1.59		%	1.65		%	1.58		%	1.28		%
Allowance for credit losses to non-performing loans	138.06		%	131.44		%	132.08		%	143.23		%	228.03		%	204.56		%	159.02		%
Annualized net charge-offs/ (recoveries) to average loans	0.31		%	0.09		%	0.01		%	0.02		%	0.01		%	(0.01)		%	0.03		%

Sandy Spring Bancorp, Inc. and Subsidiaries

CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES - UNAUDITED

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

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

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

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

Sandy Spring Bancorp, Inc. and Subsidiaries

CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES - UNAUDITED

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

(1)Tax-equivalent income has been adjusted using the combined marginal federal and state rate of 25.64% and 25.54% for 2021 and 2020, respectively. The annualized taxable-equivalent adjustments utilized in the above table to compute yields aggregated to $2.8 million and $3.1 million in 2021 and 2020, respectively.

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

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

EX-99.2

3rd Quarter Supplemental Information October 21, 2021 1

Loan Accommodations 2 As of September 30, 2021 ($ in millions) Loans with % of Portfolio Balance Payment with Payment Loan Type Outstanding(1) Accommodation Accommodation Commercial & Industrial $1,134 $1 0.1% Acquisition, Development & Construction $1,183 $0 0.0% Owner Occupied Real Estate $1,661 $6 0.4% Investment Real Estate $3,744 $0 0.0% Total Commercial Loans $7,722 $7 0.1% Mortgage Permanent $885 $5 0.5% Mortgage Construction $175 $0 0.0% Total Mortgage Loans $1,060 $5 0.4% Total Consumer Loans $441 $2 0.4% Total Loans $9,223 $14 0.1% (1) Amounts exclude PPP loans and net deferred fees/costs

Specific Industry Summary As of September 30, 2021 (1) Amounts exclude PPP loans and net deferred fees/costs (2) Criticized includes all performing and non-performing loans risk rated Special Mention, Substandard and Doubtful (3) Services industry includes, but is not limited to: Landscaping, Computer Services, Day Care, Community Housing and Dry Cleaning 3 ($ in millions) Loans with % of Portfolio Accruing Loans Total Balance Active Payment with Payment 30+ Days Non-Performing % of Portfolio PPP Industry Commitments(1) Outstanding(1) Accommodation Accommodation Past Due Loans Criticized(2) Loans Hotels $381 $374 $0 0% 0.00% 2.12% 11% $13 Restaurants $162 $153 $0 0% 0.00% 0.92% 7% $66 Services(3) $421 $232 $2 1% 0.21% 2.41% 5% $58 CRE Investment- Office $775 $737 $0 0% 0.85% 0.04% 0% $0 CRE Investment- Retail $1,278 $1,227 $0 0% 0.17% 0.11% 0% $0 CRE Investment- Multifamily $683 $606 $0 0% 1.58% 0.05% 0% $0

Paycheck Protection Program – Round 1 • PPP loans as of October 4, 2021 • 97% of all Round 1 loans have applied for forgiveness • 99.5% of all forgiveness applications submitted to the SBA have received full forgiveness • Forgiveness applications for loans totaling $94 million are in process • Balances exclude net deferred fees/costs 4 ($ in thousands) Original Forgiven or Current Origination Remaining Loan Size Amount Repaid by Client Outstanding Fees Fees Earned Fees to be Earned Less than or equal to $150,000 $179,184 $174,436 $4,748 $8,926 $8,851 $75 $150,001 - $1,999,999 $685,568 $643,306 $42,262 $23,909 $23,439 $470 Greater than or equal to $2,000,000 $270,561 $213,146 $57,415 $2,510 $2,351 $159 Total PPP Loans $1,135,313 $1,030,888 $104,425 $35,345 $34,641 $704 $

Paycheck Protection Program – Round 2 • PPP loans as of October 4, 2021 • 65% of all Round 2 loans have applied for forgiveness • 100% of all forgiveness applications submitted to the SBA have received full forgiveness • Forgiveness applications for loans totaling $141 million are in process • Balances exclude net deferred fees/costs 5 ($ in thousands) Original Forgiven or Current Origination Remaining Loan Size Amount Repaid by Client Outstanding Fees Fees Earned Fees to be Earned Less than or equal to $150,000 $112,269 $69,819 $42,450 $7,607 $5,141 $2,466 $150,001 - $1,999,999 $324,757 $30,156 $294,601 $11,783 $2,451 $9,332 Greater than or equal to $2,000,000 $32,392 $32,392 $844 $111 $733 Total PPP Loans $469,418 $99,975 $369,443 $20,234 $7,703 $12,531 $

$124.0 $107.9 ( $8.8 ) $3.0 $3.9 ( $6.4 ) ( $6.3 ) ( $1.5 ) ACL 6/30/21 Change in individual reserves Change in qualitative factors Change in portfolio mix and balances Change in economic forecast Annual update of forecast models Change in prepayment rates ACL 9/30/21 Allowance for Credit Losses – Q3 2021 Change • Decrease in Q3 2021 ACL was mainly driven by resolutions of a few non-accrual commercial relationships and the related removal of previously established individual reserves, as well as continued improvement in projected near term economic variables and an annual update of inputs used in the allowance for credit losses models. These declines were partially offset by allowance increases due to a change in portfolio mix and an update of qualitative adjustments mainly related to the Company’s exposure to certain higher risk industry segments. 6 (in millions)

Economic Forecast Comparison Below presents a comparison of the Moody’s economic forecast for local market MSA on economic factors applied in the Company’s CECL calculation: 7 Unemployment Rate 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 1Q 2023 2Q 2023 3Q 2023 Q3 2021 CECL 9/20/21 Forecast 4.81% 4.25% 3.83% 3.57% 3.40% 3.25% 3.11% 3.00% Q2 2021 CECL 6/21/21 Forecast 5.12% 4.59% 4.17% 3.86% 3.59% 3.42% 3.25% 3.12% Q1 2021 CECL 4/5/21 Forecast 5.59% 5.06% 4.60% 4.24% 4.04% 3.84% 3.66% 3.49% Q4 2020 CECL 12/23/20 Forecast 6.64% 6.62% 6.27% 5.96% 5.68% 5.38% 5.04% 4.69% YoY % Change in Business Bankruptcies Q3 2021 CECL 9/20/21 Forecast -14.92% -15.40% -20.80% -13.77% -3.22% 6.59% 18.08% 20.00% Q2 2021 CECL 6/21/21 Forecast -6.46% -8.21% -0.83% 5.50% 15.14% 22.34% 21.39% 17.47% Q1 2021 CECL 4/5/21 Forecast 3.79% 5.26% 9.74% 19.18% 20.39% 23.10% 19.57% 12.60% Q4 2020 CECL 12/23/20 Forecast -4.29% 12.66% 21.91% 35.30% 38.79% 28.64% 18.63% 8.41% YoY % Change in House Price Index Q3 2021 CECL 9/20/21 Forecast 10.27% 10.37% 7.47% 5.94% 4.31% 2.93% 1.75% 1.21% Q2 2021 CECL 6/21/21 Forecast 5.68% 4.34% 3.62% 3.43% 3.26% 2.83% 2.46% 2.00% Q1 2021 CECL 4/5/21 Forecast 5.58% 5.23% 4.00% 3.85% 3.71% 3.52% 3.12% 2.77% Q4 2020 CECL 12/23/20 Forecast 1.90% 2.18% 1.51% 1.56% 1.88% 2.42% 3.03% 3.74%

CECL – Q3 Methodology Assumptions 8 CECL Methodology Key Assumptions Macroeconomic Forecast Reasonable and supportable forecast period COVID-19 Qualitative adjustment - Used Moody's March baseline forecast for the local market MSA (released on September 20). Baseline economic projections for all of the economic variables used in the CECL estimate continued to improve from the prior quarter's forecast. - Moody's current baseline projections estimate an average unemployment rate of 3.7% over the reasonable and supportable forecast period as compared to an average unemployment rate of 3.9% noted in the prior quarter's forecast. - Reasonable and supportable forecast period represents a two year economic outlook. Key macroeconomic variables - Unemployment rate - Business Bankruptcies - Case-Schiller Home Price Index - Q3 2021 CECL calculation did not incorporate any additional qualitative adjustments related to government relief stimulus or payment accomodations on expected losses. However, loan concentrations qualititative factor captures an additional adjustment to recognize elevated risk and uncertainty of certain higher risk industry segments.

Allocation of Allowance by Product Type • Excluding PPP loans, the allowance for credit losses as a % of total loans outstanding at September 30, 2021 would increase to 1.17% and to 2.04% for the Commercial Business segment. 9 (in $ thousands) Allowance for credit losses Amount % of Loans Outstanding Amount % of Loans Outstanding Amount % of Loans Outstanding Amount % of Loans Outstanding Investor real estate 18,407$ 0.85% 16,396$ 0.76% 47,229$ 1.27% 35,956$ 0.96% Owner-occupied real estate 6,884 0.53% 7,271 0.56% 13,590 0.81% 11,760 0.71% Commercial AD&C 7,590 1.11% 10,166 1.49% 26,822 2.38% 28,688 2.44% Commercial business 11,395 1.42% 15,932 1.99% 24,841 1.26% 23,145 1.45% Total commercial 44,276$ 0.90% 49,765$ 1.01% 112,482$ 1.32% 99,549$ 1.22% Residential mortgage 8,803 0.77% 8,415 0.73% 7,362 0.77% 5,018 0.55% Residential construction 967 0.66% 694 0.47% 671 0.39% 656 0.36% Consumer 2,086 0.45% 3,005 0.64% 3,446 0.75% 2,697 0.60% Total residential and consumer 11,856$ 0.67% 12,114$ 0.69% 11,479$ 0.72% 8,371$ 0.54% Allowance for credit losses 56,132$ 0.84% 61,879$ 0.92% 123,961$ 1.23% 107,920$ 1.11% September 30, 2021 CECL June 30, 2021 CECL 4Q19 Probable Incurred Losses January 1, 2020 CECL Adoption

Capital Position • Excluding PPP loans, tangible common equity to tangible assets ratio would have been 9.4% as of September 30, 2021. • The impact of our election to apply the CECL transition provision to our regulatory capital at September 30, 2021, was an increase in Common Equity Tier 1 capital of $11.0 million and an increase in the CET 1 ratio of 12 bps. • During the current quarter, the Company repurchased 1,261,828 shares of its common stock at an average price of $43.04 per share. Under the existing authorization, 1,038,172 common shares remain available to be repurchased. • All regulatory ratios continue to be in excess of “well-capitalized” requirements. 10 CAPITAL POSITION in $ millions 3Q21 2Q21 1Q21 4Q20 3Q20 2Q20 Total Sandy Spring Bancorp shareholders' equity 1,546.1$ 1,562.3$ 1,511.7$ 1,470.0$ 1,424.7$ 1,390.1$ Common equity tier 1 capital ratio 12.5% 12.5% 12.1% 10.6% 10.4% 10.2% Tier 1 capital ratio 12.5% 12.5% 12.1% 10.6% 10.4% 10.2% Total risk-based capital ratio 15.3% 15.8% 15.5% 13.9% 14.0% 13.8% Leverage ratio 9.2% 9.5% 9.1% 8.9% 8.7% 8.3% Tangible common equity to tangible assets 9.1% 9.3% 8.9% 8.6% 8.3% 7.6%

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 effect of the pandemic on our borrowers and their ability to make payments on their obligations, the effectiveness of vaccination programs, and the effect of remedial actions and stimulus measures adopted by federal, state and local governments; general economic conditions and trends, either nationally or locally; conditions in the securities markets; changes in interest rates; changes in deposit flows, and in the demand for deposit, loan, and investment products and other financial services; changes in real estate values; changes in the quality or composition of the 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, 2020, 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. Forward Looking Statements 11

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Cover	Oct. 21, 2021
Cover [Abstract]
Document Type	8-K
Document Period End Date	Oct. 21, 2021
Entity Registrant Name	SANDY SPRING BANCORP, INC.
Entity Incorporation State Country Code	MD
Entity File Number	000-19065
Entity Tax Identification Number	52-1532952
Entity Address Address Line1	17801 Georgia Avenue
Entity Address City Or Town	Olney
Entity Address State Or Province	MD
Entity Address Postal Zip Code	20832
City Area Code	301
Local Phone Number	774-6400
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Security 12b Title	Common Stock, par value $1.00 per share
Trading Symbol	SASR
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false
Amendment Flag	false
Entity Central Index Key	0000824410