10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Fiscal Year Ended December 31, 2021

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 0-19065

SANDY SPRING BANCORP, INC.

(Exact name of registrant as specified in its charter)

Maryland	52-1532952
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
17801 Georgia Avenue, Olney, Maryland	20832
(Address of principal executive offices)	(Zip Code)
301-774-6400
(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, par value $1.00 per share	SASR	The NASDAQ Stock Market, LLC

Securities registered pursuant to Section 12(g) of the Act: None.

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. ☒ Yes ☐ No

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. ☐ Yes ☒ No*

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for shorter period that the registrant was required to submit such files). ☒ Yes

☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act (Check one):

Large accelerated filer ☒ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐ 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. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☒

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). ☐ Yes ☒ No

The aggregate market value of the voting common stock of the registrant held by non-affiliates on June 30, 2021, the last day of the registrant’s most recently completed second fiscal quarter, was approximately $2.0 billion, based on the closing sales price of $44.13 per share of the registrant's Common Stock on June 30, 2021.

The number of outstanding shares of common stock outstanding as of February 16, 2022.

Common stock, $1.00 par value – 45,131,555 shares

Documents Incorporated By Reference

Part III: Portions of the definitive proxy statement for the Annual Meeting of Shareholders to be held on May 18, 2022 (the "Proxy Statement").

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*The registrant is required to file reports pursuant to Section 13 of the Act.

SANDY SPRING BANCORP, INC. AND SUBSIDIARIES

Table of Contents

Forward-Looking Statements	3
PART I.
Item 1. Business	4
Item 1A. Risk Factors	17
Item 1B. Unresolved Staff Comments	31
Item 2. Properties	31
Item 3. Legal Proceedings	31
Item 4. Mine Safety Disclosures	31
PART II.
Item 5. Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	31
Item 6. Reserved	34
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations	35
Item 7A. Quantitative and Qualitative Disclosures About Market Risk	66
Item 8. Financial Statements and Supplementary Data	66
Reports of Independent Registered Public Accounting Firm (PCAOB ID: 42)	67
Consolidated Financial Statements	70
Notes to the Consolidated Financial Statements	75
Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure	127
Item 9A. Controls and Procedures	127
Item 9B. Other Information	127
Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspection	127
PART III.
Item 10. Directors, Executive Officers and Corporate Governance	127
Item 11. Executive Compensation	127
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	127
Item 13. Certain Relationships and Related Transactions and Director Independence	127
Item 14. Principal Accounting Fees and Services	127
PART IV.
Item 15. Exhibits, Financial Statement Schedules	129
Item 16. Form 10-K Summary	131
Signatures	132

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Forward-Looking Statements

This Annual Report Form 10-K, as well as other periodic reports filed with the Securities and Exchange Commission, and written or oral communications made from time to time by or on behalf of Sandy Spring Bancorp, Inc. and its subsidiaries (the “Company”), may contain statements relating to future events or future results of the Company that are considered “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by the use of words such as “believe,” “expect,” “anticipate,” “plan,” “estimate,” “intend” and “potential,” or words of similar meaning, or future or conditional verbs such as “should,” “could,” or “may.” Forward-looking statements include statements of our goals, intentions and expectations; statements regarding our business plans, prospects, growth and operating strategies; statements regarding the quality of our loan and investment portfolios; and estimates of our risks and future costs and benefits.

Forward-looking statements reflect our expectation or prediction of future conditions, events or results based on information currently available. These forward-looking statements are subject to significant risks and uncertainties that may cause actual results to differ materially from those in such statements. These risks and uncertainties include, but are not limited to, the risks identified in Item 1A of this report and the following:

•risks, uncertainties and other factors relating to the COVID-19 pandemic, including the length of time that the pandemic continues, the effectiveness and acceptance of vaccination programs, the imposition of any restrictions on business operations and/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 business and economic conditions nationally or in the markets that the Company serves could adversely affect, among other things, prices of consumer goods, real estate prices, unemployment levels, the ability of businesses to remain viable and consumer and business confidence, which could lead to decreases in the demand for loans, deposits and other financial services that the Company provides and increases in loan delinquencies and defaults;

•changes or volatility in the capital markets and interest rates may adversely impact the value of securities, loans, deposits and other financial instruments and the interest rate sensitivity of our balance sheet as well as our liquidity;

•the Company's liquidity requirements could be adversely affected by changes in our assets and liabilities;

•the Company's investment securities portfolio is subject to credit risk, market risk, and liquidity risk as well as changes in the estimates used to value certain of the securities in our portfolio;

•the effect of legislative or regulatory developments including changes in laws concerning taxes, banking, securities, insurance and other aspects of the financial services industry;

•acquisition integration risks, including potential deposit attrition, higher than expected costs, customer loss, business disruption and the inability to realize benefits and cost savings from, and limit any unexpected liabilities associated with, any business combinations;

•competitive factors among financial services companies, including product and pricing pressures and the Company's ability to attract, develop and retain qualified banking professionals;

•the effect of changes in accounting policies and practices, as may be adopted by the Financial Accounting Standards Board, the Securities and Exchange Commission, the Public Company Accounting Oversight Board and other regulatory agencies; and

•the effect of fiscal and governmental policies of the United States federal government.

Forward-looking statements speak only as of the date of this report. The Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date of this report or to reflect the occurrence of unanticipated events except as required by federal securities laws.

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PART I

Item 1. BUSINESS

General

Sandy Spring Bancorp, Inc. ("Sandy Spring" or, together with its subsidiaries, the "Company") is the bank holding company for Sandy Spring Bank (the "Bank"). The Company is registered as a bank holding company pursuant to the Bank Holding Company Act of 1956, as amended (the "Holding Company Act") and is subject to supervision and regulation by the Board of Governors of the Federal Reserve System (the "Federal Reserve"). The Company began operating in 1988 while Sandy Spring Bank traces its origin to 1868, making it among the oldest banking institutions in the region. The Bank offers a broad range of commercial and retail banking, mortgage, private banking and trust services at over 50 locations throughout central Maryland, Northern Virginia, and Washington D.C. The Bank is a state chartered bank subject to supervision and regulation by the Federal Reserve and the State of Maryland. The Bank's deposit accounts are insured by the Deposit Insurance Fund administered by the Federal Deposit Insurance Corporation (the "FDIC") to the maximum extent permitted by law. The Bank is a member of the Federal Reserve System and is an Equal Housing Lender. The Company, the Bank, and their other subsidiaries are Affirmative Action/Equal Opportunity Employers.

The Company is a community banking organization that focuses its lending and other services on businesses and consumers in the local market area. Through its subsidiaries, Sandy Spring Insurance Corporation ("SSIC"), West Financial Services, Inc. ("West Financial") and SSB Wealth Management, Inc. (d/b/a Rembert Pendleton Jackson, "RPJ"), Sandy Spring Bank offers a comprehensive menu of insurance and investment management services. At December 31, 2021, the Company had $12.6 billion in assets, a $0.2 billion decrease from total assets at December 31, 2020. During this period, total loans declined by 4% to $10.0 billion at December 31, 2021, compared to $10.4 billion at December 31, 2020. Excluding Paycheck Protection Program ("PPP" or "PPP program") loans, total loans at December 31, 2021 grew 5% to $9.8 billion as compared to $9.3 billion at December 31, 2020, as the commercial loan portfolio grew $681.1 million, while the residential mortgage loan portfolio declined $152.6 million. Excess liquidity resulting from deposit growth and PPP loan forgiveness during 2021 was applied to reduce borrowings as well as fund the loan growth that occurred in the last quarter of the current year.

On April 1, 2020 (“Acquisition Date”), the Company completed the acquisition of Revere Bank ("Revere"), headquartered in Rockville, Maryland. The acquisition resulted in the initial addition of 11 banking offices and more than $2.8 billion in assets as of the Acquisition Date. At the Acquisition Date, Revere had loans of $2.5 billion and deposits of $2.3 billion. The all-stock transaction resulted in the issuance of 12.8 million common shares and with total consideration exchanged valued at approximately $293 million. In addition, on February 1, 2020 the Company acquired RPJ, a wealth advisory firm located in Falls Church, Virginia with approximately $1.5 billion in assets under management.

The Company's and the Bank's principal executive office is located at 17801 Georgia Avenue, Olney, Maryland 20832, and its telephone number is 301-774-6400.

Availability of Information

This report is not part of the proxy materials for the Company’s annual meeting of shareholders; it is provided along with the annual proxy statement for convenience of use and as an expense control measure. The Company makes available through the Investor Relations area of the Company website, at www.sandyspringbank.com, annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and any amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934. Access to these reports is provided by means of a link to a third-party vendor that maintains a database of such filings. In general, the Company intends that these reports be available as soon as practicable after they are filed with or furnished to the Securities and Exchange Commission (“SEC”). Technical and other operational obstacles or delays caused by the vendor may delay their availability. The SEC maintains a website (www.sec.gov) where these filings are also available through the SEC’s EDGAR system. There is no charge for access to these filings through either the Company’s website or the SEC’s website.

Market and Economic Overview

Sandy Spring Bank is headquartered in Montgomery County, Maryland and conducts business primarily in Central Maryland, Northern Virginia and Washington D.C. The Bank's footprint serves the Washington metropolitan area, which is one of the country’s most economically successful regions. The region’s economic strength is due to the region’s significant federal government presence and strong growth in the business and professional services sector. The proximity to numerous armed forces installations in Maryland, including the United States Cyber Command in Ft. Meade, Maryland, together with a strategic location between two of the country’s

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leading ports – the Port of Baltimore and the Port of Norfolk – and its proximity to numerous interstates and railways have provided opportunities for growth in a variety of areas, including logistics and transportation.

According to the U.S. Census Bureau, the region is home to four of the top ten most highly educated counties in the nation and four of the top ten most affluent counties, as measured by household income. The Company’s geographical location provides access to key neighboring markets such as Philadelphia, New York City, Pittsburgh and the Richmond/Norfolk, Virginia corridor. While the region continues to experience the economic effects of the novel coronavirus ("COVID-19" or “pandemic”), the region’s unemployment rate remained below the national average as the region has the benefit of a highly trained and educated workforce concentrated in government and white-collar service businesses. These factors, along with the ability of the regional infrastructure to support remote working, has provided a greater amount of resiliency in the face of the impact of the pandemic on the overall employment metrics for our market/region.

Both globally and within the United States, the pandemic has resulted in negative impacts and a disruption to economic and commercial activity. The local economy that the Company operates began to strengthen and improve into 2021. Economic improvement had resulted in many positive economic trends, such as low unemployment, increased consumer confidence, and increased housing development and housing prices. However, the Company's business opportunities may be tempered by concerns such as employment opportunities, the effects of the remote workplace, the impact of inflation, the effect of current and proposed government stimulus, wage growth and the strength of the dollar. Volatility in global economic markets, continued domestic political turmoil and various episodes of geopolitical unrest continue to provide a degree of uncertainty in the financial markets. Overall, management continues to be encouraged by the resiliency of the current economic environment and the prospects for continued growth of the Company.

Loan Products

The Company currently offers a complete menu of loan products primarily in the Company’s identified market footprint that are discussed in detail below and on the following pages. These following sections should be read in conjunction with the section “Credit Risk” on page 55 of this report.

Commercial Loans

Included in this category are commercial real estate loans, commercial construction loans and other commercial loans. The Company’s commercial loan clients represent a diverse cross-section of small to mid-size local businesses within the Company’s market footprint, whose owners and employees are often established Bank customers. Such banking relationships are a natural business for the Company, with its long-standing community roots and extensive experience in serving and lending to this market segment.

Commercial loans are evaluated for the adequacy of repayment sources at the time of approval and are regularly reviewed for any possible deterioration in the ability of the borrower to repay the loan. Collateral generally is required to provide the Company with an additional source of repayment in the event of default by a commercial borrower. The structure of the collateral package, including the type and amount of the collateral, varies from loan to loan depending on the financial strength of the borrower, the amount and terms of the loan, and the collateral available to be pledged by the borrower, but generally may include real estate, accounts receivable, inventory, equipment or other assets. Loans also may be supported by personal guarantees from the principals of the commercial loan borrowers. The financial condition and cash flow of commercial borrowers are closely monitored by the submission of corporate financial statements, personal financial statements and income tax returns. The frequency of submissions of required information depends upon the size and complexity of the credit and the collateral that secures the loan. Credit risk for commercial loans arises from borrowers lacking the ability or willingness to repay the loan, and in the case of secured loans, by a shortfall in the collateral value in relation to the outstanding loan balance in the event of a default and subsequent liquidation of collateral. A risk rating system is applied to the commercial loan portfolio to measure credit risk and differentiate the level of risk posed by individual credits. The Company has no commercial loans to borrowers in similar industries that exceed 10% of total loans.

During 2021 and 2020, the Company participated in the Small Business Administration’s (“SBA”) PPP program, which provided forgivable loans to small businesses to enable them to maintain payroll, hire back employees who have been laid off, and cover applicable overhead. These loans are fully guaranteed by the SBA and eligible for full forgiveness when the proceeds are utilized for certain payroll and other expenses under guidelines provided by the SBA. Loans that do not meet the forgiveness criteria enter a repayment period of 2 or 5 years. Total lending under the PPP program by the Company for 2021 and 2020 amounted to 8,574 loans for a total of $1.6 billion. At December 31, 2021, loans totaling $1.4 billion have been forgiven and an additional $52.0 million have

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been repaid by borrowers. The remaining outstanding principal balance of PPP loans, net of deferred origination fees, at December 31, 2021 was $183.5 million.

Included in commercial loans are credits directly originated by the Company and, to a lesser extent, loan participations acquired from other lenders. The Company's commercial lending policy requires each loan, regardless of whether it is directly originated or is purchased, to have viable repayment sources. The risks associated with purchased participations are similar to those of directly originated commercial loans, although additional risk may arise from the limited ability to control actions of the primary lender. The Company also purchases whole loans and loan participations as part of its asset/liability management strategy. Strict policies are in place governing the degree of risk assumed and volume of loans held. At December 31, 2021, other financial institutions had $222.7 million in outstanding commercial and commercial real estate loan participations sold by the Company. In addition, at December 31, 2021, the Company had $131.2 million in outstanding commercial and commercial real estate loan participations purchased from other lenders.

Commercial Real Estate

The Company's commercial real estate loans consist of both loans secured by owner-occupied properties and nonowner-occupied properties ("investor real estate loans") where an established banking relationship exists. The commercial real estate categories contain mortgage loans to developers and owners of commercial real estate. Commercial real estate loans are governed by the same lending policies and subject to credit risk as previously described for commercial loans. Commercial real estate loans secured by owner-occupied properties are based upon the borrower’s financial condition and the ability of the borrower and the business to provide for repayment. Investor real estate loans secured by nonowner-occupied properties involve investment properties for multi-family, warehouse, retail, and office space with a history of occupancy and cash flow. The Company seeks to reduce the risks associated with commercial mortgage lending by generally lending in its market area, using conservative loan-to-value ratios and obtaining periodic financial statements and tax returns from borrowers to perform loan reviews. It is also the Company's general policy to obtain personal guarantees from the principals of the borrowers and to underwrite the business entity from a cash flow perspective. Interest rate risks are mitigated by using either floating interest rates or by fixing rates for a short period of time, generally less than three years. While loan amortizations may be approved for up to 360 months, each loan generally has a call provision (maturity date) of five to ten years or less.

Commercial acquisition, development and construction ("AD&C") loans to residential builders are generally made for the construction of residential homes for which a binding sales contract exists and the prospective buyers have been pre-qualified for permanent mortgage financing by either third-party lenders (mortgage companies or other financial institutions) or the Company. Loans for the development of residential land are extended when evidence is provided that the lots under development will be or have been sold to builders satisfactory to the Company. These loans are generally extended for a period of time sufficient to allow for the clearing and grading of the land and the installation of water, sewer and roads, which is typically a minimum of eighteen months to three years.

The Company primarily lends for AD&C in local markets that are familiar and understandable, works selectively with top-quality builders and developers, and requires substantial equity from its borrowers. The underwriting process is designed to confirm that the project will be economically feasible and financially viable; projects are generally evaluated as though the Company will provide permanent financing. The Company's portfolio growth objectives do not include speculative commercial construction projects or projects lacking reasonable proportionate sharing of risk. Development and construction loans are secured by the properties under development or construction, and personal guarantees are typically obtained. Further, to assure that reliance is not placed solely upon the value of the underlying collateral, the Company considers the financial condition and reputation of the borrower and any guarantors, the amount of the borrower's equity in the project, independent appraisals, cost estimates and pre-construction sales information.

Commercial Business Loans

The Company also originates commercial business loans. Commercial term loans are made to provide funds for equipment and general corporate needs. This loan category is designed to support borrowers who have a proven ability to service debt over a term generally not to exceed 84 months. The Company generally requires a first lien position on all collateral and requires guarantees from owners having at least a 10% interest in the involved business. Interest rates on commercial term loans are generally floating or fixed for a term not to exceed seven years. Management monitors industry and collateral concentrations to avoid loan exposures to a large group of similar industries or similar collateral. Commercial business loans are evaluated for historical and projected cash flow attributes, balance sheet strength, and primary and alternate resources of personal guarantors. Commercial term loan documents require borrowers to forward regular financial information on both the business and personal guarantors. Loan covenants require at

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least annual submission of complete financial information and in certain cases this information is required monthly, quarterly or semi-annually depending on the degree to which the Company desires information resources for monitoring a borrower’s financial condition and compliance with loan covenants. Examples of properly margined collateral for loans, as required by Bank policy, would be an 80% advance on the lesser of appraisal or recent sales price on commercial property, an 80% or less advance on eligible receivables, a 50% or less advance on eligible inventory and an 80% advance on appraised residential property. Collateral borrowing certificates may be required to monitor certain collateral categories on a monthly or quarterly basis. Loans may require personal guarantees. Key person life insurance may be required as appropriate and as necessary to mitigate the risk of loss of a primary owner or manager. Whenever appropriate and available, the Bank seeks governmental loan guarantees, such as the SBA's loan programs, to reduce risks.

Commercial lines of credit are granted to finance a business borrower’s short-term credit needs and/or to finance a percentage of eligible receivables and inventory. In addition to the risks inherent in term loan facilities, line of credit borrowers typically require additional monitoring to protect the lender against increasing loan volumes and diminishing collateral values. Commercial lines of credit are generally revolving in nature and require close scrutiny. The Company generally requires at least an annual out of debt period (for seasonal borrowers) or regular financial information (monthly or quarterly financial statements, borrowing base certificates, etc.) for borrowers with more growth and greater permanent working capital financing needs. Advances against collateral value are limited. Lines of credit and term loans to the same borrowers generally are cross-defaulted and cross-collateralized. Interest rate charges on this group of loans generally float at a factor at or above the prime lending rate.

Residential Real Estate Loans

The residential real estate category contains loans principally to consumers secured by residential real estate. Loans for residential real estate may carry either a fixed rate of interest or an adjustable rate over the life of loan. Adjustable rate mortgage (“ARM”) loans have a 30 year amortization period with a fixed rate of interest for the first five, seven or ten years, re-pricing semiannually or annually thereafter at a predetermined spread to an index. The Company's residential real estate lending policy requires each loan to have viable repayment sources. Residential real estate loans are evaluated for the adequacy of these repayment sources at the time of approval, based upon measures including credit scores, debt-to-income ratios, and collateral values. Credit risk for residential real estate loans arises from borrowers lacking the ability or willingness to repay the loan or by a shortfall in the value of the residential real estate in relation to the outstanding loan balance in the event of a default and subsequent liquidation of the real estate collateral. The residential real estate portfolio includes both conforming and non-conforming mortgage loans.

Conforming mortgage loans represent loans originated in accordance with underwriting standards set forth by government-sponsored entities (“GSEs”), including the Federal National Mortgage Association (“Fannie Mae”), the Federal Home Loan Mortgage Corporation (“Freddie Mac”), and the Government National Mortgage Association (“Ginnie Mae”), which serve as the primary purchasers of loans sold in the secondary mortgage market by mortgage lenders. These loans are generally collateralized by one-to-four-family residential real estate, have loan-to-collateral value ratios of 80% or less or have mortgage insurance to insure down to 80%, and are made to borrowers in good credit standing. In recent years, the Company has made the strategic decision to sell the majority of new mortgage loan production in the secondary market. For any loans retained by the Company, title insurance insuring the priority of its mortgage lien, as well as fire and extended coverage casualty insurance protecting the properties securing the loans is required. Borrowers may be required to advance funds with each monthly payment of principal and interest, to a loan escrow account from which the Company makes disbursements for items such as real estate taxes and mortgage insurance premiums. Appraisers approved by the Company appraise the properties securing substantially all of the Company's residential mortgage loans.

Non-conforming mortgage loans represent loans that generally are not saleable in the secondary market to the GSEs for inclusion in conventional mortgage-backed securities due to the credit characteristics of the borrower, the underlying documentation, the loan-to-value ratio, or the size of the loan, among other factors. The Company originates non-conforming loans for its own portfolio and for sale to third-party investors, usually large mortgage companies, under commitments by the mortgage company to purchase the loans subject to compliance with pre-established investor criteria. Non-conforming loans generated for sale include loans that may not be underwritten using customary underwriting standards. These loans typically are held after funding for thirty days or less, and are included in residential mortgages held for sale. The Company may sell both conforming and non-conforming loans on either a servicing released or servicing retained basis.

The Company makes residential real estate development and construction loans generally to provide interim financing on property during the development and construction period. Borrowers include builders, developers and persons who will ultimately occupy the single-family dwelling. Residential real estate development and construction loan funds are disbursed periodically as pre-specified

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stages of completion are attained based upon site inspections. Interest rates on these loans are usually adjustable. Loans to individuals for the construction of primary personal residences are typically secured by the property under construction, frequently include additional collateral (such as a second mortgage on the borrower's present home), and commonly have maturities of twelve to eighteen months. The Company attempts to obtain the permanent mortgage loan under terms, conditions and documentation standards that permit the sale of the mortgage loan in the secondary mortgage loan market.

Consumer Loans

Consumer lending continues to be important to the Company’s full-service, community banking business. This category of loans includes primarily home equity loans and lines, installment loans and personal lines of credit.

The home equity category consists mainly of revolving lines of credit to consumers that are secured by residential real estate. Home equity lines of credit and other home equity loans are originated by the Company for typically up to 85% of the appraised value, less the amount of any existing prior liens on the property. While home equity loans have maximum terms of up to twenty years and interest rates are generally fixed, home equity lines of credit have maximum terms of up to ten years for draws and thirty years for repayment, and interest rates are generally adjustable. The Company secures these loans with mortgages on the homes (typically a second mortgage). Purchase money second mortgage loans originated by the Company have maximum terms ranging from ten to thirty years. These loans generally carry a fixed rate of interest for a term of 15 or 20 years. Home equity lines are generally governed by the same lending policies and subject to the same credit risk as described for residential real estate loans.

Other consumer loans include installment loans used by customers to purchase automobiles, boats and recreational vehicles. These consumer loans are generally governed by the same overall lending policies as described for residential real estate loans. Credit risk for consumer loans arises from borrowers lacking the ability or willingness to repay the loan, and in the case of secured loans, by a shortfall in the value of the collateral in relation to the outstanding loan balance in the event of a default and subsequent liquidation of collateral.

Consumer installment loans are generally offered for terms of up to six years at fixed interest rates. Automobile loans can be for up to 100% of the purchase price or the retail value listed by the National Automobile Dealers Association. The terms of the loans are determined by the age and condition of the collateral. Collision insurance policies are required on all of these loans, unless the borrower has substantial other assets and income. The Company also makes other consumer loans, which may or may not be secured. The term of the loans usually depends on the collateral. The majority of outstanding unsecured loans usually do not exceed $50 thousand and have a term of no longer than 36 months.

Deposit Activities

Subject to the Company’s Asset/Liability Committee (the “ALCO”) policies and current business plan, the Company seek to maintain deposit market share within the Company’s primary markets while managing funding costs to preserve the net interest margin.

One of the Company’s primary objectives as a community bank is to develop long-term, multi-product customer relationships from its comprehensive menu of financial products. To that end, the lead product to develop such relationships is typically a deposit product. The Company relies primarily on core deposit growth to fund long-term loan growth.

Treasury Activities

The Company's treasury function manages the wholesale segments of the balance sheet, including investments, purchased funds and long-term debt, and is responsible for all facets of interest rate risk management for the Company, which includes the pricing of deposits consistent with conservative interest rate risk and liquidity practices. Management’s objective is to achieve the maximum level of consistent earnings over the long term, while minimizing interest rate risk, credit risk and liquidity risk and optimizing capital utilization. In managing the investment portfolio under its stated objectives, the Company invests primarily in U.S. Treasury and Agency securities, U.S Agency mortgage-backed and asset-backed securities (“MBS”), U.S. Agency collateralized mortgage obligations (“CMO”), municipal bonds and, to a minimal extent, corporate bonds. Treasury strategies and activities are overseen by the Risk Committee of the board of directors, ALCO and the Company’s Investment Committee, which reviews all investment and funding transactions. The ALCO activities are summarized and reviewed quarterly with the Company’s board of directors.

The primary objective of the investment portfolio is to provide appropriate liquidity consistent with anticipated levels of deposit funding and loan demand with a minimal level of risk. The overall average duration of 4.3 years of the investment portfolio together with the types of investments (96% of the portfolio is rated AA or above) is intended to provide sufficient cash flows to support the

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Company’s lending goals. Liquidity is also provided by secured lines of credit maintained with the Federal Home Loan Bank of Atlanta (“FHLB”), the Federal Reserve Bank, and to a lesser extent, unsecured lines of credit with correspondent banks.

Borrowing Activities

The Company’s borrowing activities are achieved through the use of lines of credit to address overnight and short-term funding needs, match-fund loan activity and lock in attractive rates. Borrowing activities may encompass a variety of sources to raise borrowed funds at competitive rates, including federal funds purchased, FHLB advances, retail repurchase agreements and long-term debt. FHLB borrowings typically carry rates at varying spreads from the Secured Overnight Funding Rate ("SOFR") rate or treasury yield curve for the equivalent term because they may be secured with investments or high quality loans. Federal funds purchased, which are generally overnight borrowings, are typically purchased at the Federal Reserve target rate. The Company issued $175 million in subordinated debt in November 2019. This debt issuance provided capital to support future growth. A portion of the proceeds from this subordinated issuance funded the 2021 redemptions of higher priced debt that was assumed as part of the WashingtonFirst and Revere acquisitions. The Company's outstanding subordinated debt is considered Tier 2 capital under current regulatory guidelines.

Human Capital

The Company’s vision is to be recognized as an outstanding financial services company creating remarkable experiences for its clients, employees, shareholders, and communities. Attracting, retaining and developing qualified employees and providing them with a remarkable employee experience is a key to providing a remarkable client experience and is an important contributor to the Company’s success.

Employee Profile

The following table describes the composition of the Company’s workforce at December 31, 2021:

Employees
Full-time employees	1,084
Part-time employees	29
Temporary employees	3
Total employees	1,116
Women	58.6	%
Minorities	41.4	%

Talent Acquisition

The Company’s demand for qualified candidates grows as the Company’s business grows. Building a diverse and inclusive workforce is a component of the Company's strategic plan. The Company attracts talented individuals with a combination of competitive pay and benefits. The Company’s minimum wage for entry-level positions, following a brief training period, is $15.00 per hour. Through systematic talent management, career development and succession planning, the Company is striving to source a larger percentage of candidates internally.

Professional Development

The Company’s performance management program is an interactive practice that engages employees through monthly coaching sessions with their manager, annual reviews, and annual goal setting. The Company offers a variety of programs to help employees learn new skills, establish and meet personalized development goals, take on new roles and become better leaders.

Employee Engagement

The Company recognizes that employees who are involved in, enthusiastic about and committed to their work and workplace contribute meaningfully to the success of the Company. On a regular basis, the Company solicits employee feedback through a confidential, company-wide survey on culture, management, career opportunities, compensation, and benefits. The results of this survey are reviewed with the board of directors and are used to update employee programs, initiatives, and communications. The Company has a number of other engagement initiatives, including quarterly town hall meetings with the Company’s Chief Executive

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Officer and other senior leaders and utilizes a number of recognition programs to reward employees for their efforts. The Company was again recognized as an employer of choice by the Baltimore Sun, Washington Post and the American Banker Magazine.

Succession Planning

The Company is focused on facilitating internal succession by fostering internal mobility, enhancing its talent pool through professional development programs, structuring its training program to teach skills for 21st century banking, and expanding opportunities through structured diversity and inclusion initiatives.

Pandemic Impact and Response

The Company's business, financial condition, and results of operations have been and may continue to be affected by the outbreak of COVID-19. Both globally and within the United States, the pandemic continues to have various effects on economic and commercial activity and financial markets. Area jurisdictions continue to monitor and modify their respective pandemic guidelines on a periodic basis based on contagion metrics. Businesses continue to observe and modify their activities and behaviors to remain in compliance with the jurisdictional directives while concurrently providing consumers with goods and services. These directives have resulted in business, supply and operational disruptions, including business closures, curtailment of services, operational reorganizations, supply chain disruptions, and layoffs and furloughs. Certain actions taken by U.S. or other governmental authorities, including the Federal Reserve, that are intended to ameliorate the macroeconomic effects of COVID-19 may adversely impact our business. Low short-term interest rates, such as those maintained by the Federal Reserve since early 2020 have negatively impacted our results, as we have certain assets and liabilities that are sensitive to changes in interest rates. Management continually monitors developments, evaluates strategic and tactical initiatives and solutions and allocates the necessary resources to mitigate the negative impact of this significant market disruption caused by the pandemic. For a description of the potential impacts of COVID-19 on the Company, see “Item 1A-Risk Factors”. To address the potential impact of COVID-19 on operations, the Company implemented business continuity plans and continues to provide financial services to clients. In response to COVID-19, the Company implemented numerous actions to address the health and safety of employees and clients and to assist clients that have been impacted by the pandemic.

Competition

The Bank's principal competitors for deposits are other financial institutions, including other banks, credit unions, and savings institutions, located in the Bank’s primary market area of central Maryland, Northern Virginia and Washington D.C. Competition among these institutions is based primarily on interest rates and other terms offered, product offerings, service charges imposed on deposit accounts, the quality of services rendered, the convenience of banking facilities, and online and mobile banking functionality. Additional competition for depositors' funds comes from mutual funds, U.S. Government securities, and private issuers of debt obligations and suppliers of other investment alternatives for depositors such as securities firms. Competition from credit unions has intensified in recent years as historical federal limits on membership have been relaxed. Because federal law subsidizes credit unions by giving them a general exemption from federal income taxes, credit unions have a significant cost advantage over banks and savings associations, which are fully subject to federal income taxes. Credit unions may use this advantage to offer rates that are highly competitive with those offered by banks and thrifts.

The banking business in Central Maryland, Northern Virginia and Washington D.C. generally, and the Bank's primary service areas specifically, are highly competitive with respect to both loans and deposits. The Bank competes with many larger banking organizations that have offices over a wide geographic area. These larger institutions have certain inherent advantages, such as the ability to finance wide-ranging advertising campaigns and promotions and to allocate their investment assets to regions offering the highest yield and demand. They also offer services, such as international banking, that are not offered directly by the Bank (but are available indirectly through correspondent institutions), and, by virtue of their larger total capitalization, such banks have substantially higher legal lending limits, which are based on bank capital, than does the Bank. The Bank can arrange loans in excess of its lending limit, or in excess of the level of risk it desires to take, by arranging participations with other banks. The primary factors in competing for loans are interest rates, loan origination fees, and the range of services offered by lenders. Competitors for loan originations include other commercial banks, mortgage bankers, mortgage brokers, savings associations, and insurance companies.

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SSIC operates Sandy Spring Insurance, a general insurance agency located in Annapolis, Maryland, and Neff & Associates, an insurance agency located in Ocean City, Maryland. Both agencies face competition primarily from other insurance agencies and insurance companies. West Financial, located in McLean, Virginia, and RPJ, located in Falls Church, Virginia, both wholly owned subsidiaries of the Bank, are asset management and financial planning companies. West Financial and RPJ face competition primarily from other financial planners, banks, and financial management companies.

In addition to competing with other commercial banks, credit unions and savings associations, commercial banks such as the Bank compete with non-bank institutions for funds. For instance, yields on corporate and government debt and equity securities affect the ability of commercial banks to attract and hold deposits. Mutual funds also provide substantial competition to banks for deposits. Other entities, both governmental and in private industry, raise capital through the issuance and sale of debt and equity securities and indirectly compete with the Bank in the acquisition of deposits.

Monetary Policy

The Company and the Bank are affected by fiscal and monetary policies of the federal government, including those of the Federal Reserve Board, which regulates the national money supply in order to mitigate recessionary and inflationary pressures. Among the techniques available to the Federal Reserve Board are engaging in open market transactions of U.S. Government securities, changing the discount rate and changing reserve requirements against bank deposits. These techniques are used in varying combinations to influence the overall growth of bank loans, investments and deposits. Their use may also affect interest rates charged on loans and paid on deposits. The effect of governmental policies on the earnings of the Company and the Bank cannot be predicted.

Regulation, Supervision, and Governmental Policy

The following is a brief summary of certain statutes and regulations that significantly affect the Company and its subsidiaries. A number of other statutes and regulations may affect the Company and the Bank but are not discussed in the following paragraphs.

Bank Holding Company Regulation

The Company is registered as a bank holding company under the Holding Company Act and, as such, is subject to supervision and regulation by the Federal Reserve. As a bank holding company, the Company is required to furnish to the Federal Reserve annual and quarterly reports of its operations and additional information and reports. The Company is also subject to regular examination by the Federal Reserve.

Under the Holding Company Act, a bank holding company must obtain the prior approval of the Federal Reserve before (1) acquiring direct or indirect ownership or control of any class of voting securities of any bank or bank holding company if, after the acquisition, the bank holding company would directly or indirectly own or control more than 5% of the class; (2) acquiring all or substantially all of the assets of another bank or bank holding company; or (3) merging or consolidating with another bank holding company.

Prior to acquiring control of the Company or the Bank, any company must obtain approval of the Federal Reserve. For purposes of the Holding Company Act, “control” is defined as ownership of 25% or more of any class of voting securities of the Company or the Bank, the ability to control the election of a majority of the directors, or the exercise of a controlling influence over management or policies of the Company or the Bank.

The Holding Company Act also limits the investments and activities of bank holding companies. In general, a bank holding company is prohibited from acquiring direct or indirect ownership or control of more than 5% of the voting shares of a company that is not a bank or a bank holding company or from engaging directly or indirectly in activities other than those of banking, managing or controlling banks, providing services for its subsidiaries, non-bank activities that are closely related to banking, and other financially related activities. The activities of the Company are subject to these legal and regulatory limitations under the Holding Company Act and Federal Reserve regulations.

The Change in Bank Control Act and the related regulations of the Federal Reserve require any person or persons acting in concert (except for companies required to make application under the Holding Company Act) to file a written notice with the Federal Reserve before the person or persons acquire control of the Company or the Bank. The Change in Bank Control Act defines “control” as the direct or indirect power to vote 25% or more of any class of voting securities or to direct the management or policies of a bank holding company or an insured bank.

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In general, a bank holding company that qualifies as a financial holding company under federal banking law may engage in an expanded list of non-bank activities. Non-bank and financially related activities of bank holding companies, including companies that become financial holding companies, also may be subject to regulation and oversight by regulators other than the Federal Reserve. The Company is not a financial holding company, but may choose to become one in the future.

The Federal Reserve has the power to order a holding company or its subsidiaries to terminate any activity, or to terminate its ownership or control of any subsidiary, when it has reasonable cause to believe that the continuation of such activity or such ownership or control constitutes a serious risk to the financial safety, soundness, or stability of any bank subsidiary of that holding company.

The Federal Reserve has adopted guidelines regarding the capital adequacy of bank holding companies, which require bank holding companies to maintain specified minimum ratios of capital to total average assets and capital to risk-weighted assets. See “Regulatory Capital Requirements.”

The Federal Reserve has the power to prohibit dividends by bank holding companies if their actions constitute unsafe or unsound practices. The Federal Reserve has issued a policy statement on the payment of cash dividends by bank holding companies, which expresses the Federal Reserve’s view that a bank holding company should pay cash dividends only to the extent that the company’s net income for the past year is sufficient to cover both the cash dividends and a rate of earnings retention that is consistent with the company’s capital needs, asset quality, and overall financial condition.

A holding company must serve as a source of strength for its subsidiary banks and the Federal Reserve may require a holding company to contribute additional capital to an undercapitalized subsidiary bank. In the event of a bank holding company’s bankruptcy, any commitment by the bank holding company to a federal banking regulator to maintain the capital of a subsidiary bank would be assumed by the bankruptcy trustee and may be entitled to priority over other creditors.

Bank Regulation

The Bank is a state chartered bank and trust company subject to supervision by the State of Maryland. As a member of the Federal Reserve System, the Bank is also subject to supervision by the Federal Reserve. Deposits of the Bank are insured by the FDIC to the legal maximum limit. Deposits, reserves, investments, loans, consumer law compliance, issuance of securities, payment of dividends, establishment of branches, mergers and acquisitions, corporate activities, changes in control, electronic funds transfers, responsiveness to community needs, management practices, compensation policies, and other aspects of operations are subject to regulation by the appropriate federal and state supervisory authorities. In addition, the Bank is subject to numerous federal, state and local laws and regulations that set forth specific restrictions and procedural requirements with respect to extensions of credit (including to insiders), credit practices, disclosure of credit terms and discrimination in credit transactions.

The Federal Reserve regularly examines the operations and condition of the Bank, including, but not limited to, its capital adequacy, reserves, loans, investments, and management practices. These examinations are for the protection of the Bank’s depositors and the Deposit Insurance Fund. In addition, the Bank is required to furnish quarterly and annual reports to the Federal Reserve. The Federal Reserve’s enforcement authority includes the power to remove officers and directors and the authority to issue cease-and-desist orders to prevent a bank from engaging in unsafe or unsound practices or violating laws or regulations governing its business.

The Federal Reserve has adopted regulations regarding capital adequacy, which require member banks to maintain specified minimum ratios of capital to total average assets and capital to risk-weighted assets. See “Regulatory Capital Requirements.” Federal Reserve and State regulations limit the amount of dividends that the Bank may pay to the Company. See Note 12 – Stockholders’ Equity in the Notes to the Consolidated Financial Statements.

The Bank is subject to restrictions imposed by federal law on extensions of credit to, and certain other transactions with, the Company and other affiliates, and on investments in their stock or other securities. These restrictions prevent the Company and the Bank’s other affiliates from borrowing from the Bank unless the loans are secured by specified collateral, and require those transactions to have terms comparable to terms of arms-length transactions with third parties. In addition, secured loans and other transactions and investments by the Bank are generally limited in amount as to the Company and as to any other affiliate to 10% of the Bank’s capital and surplus and as to the Company and all other affiliates together to an aggregate of 20% of the Bank’s capital and surplus. Certain exemptions to these limitations apply to extensions of credit and other transactions between the Bank and its subsidiaries. These

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regulations and restrictions may limit the Company’s ability to obtain funds from the Bank for its cash needs, including funds for acquisitions and for payment of dividends, interest, and operating expenses.

Under Federal Reserve regulations, banks must adopt and maintain written policies that establish appropriate limits and standards for extensions of credit secured by liens or interests in real estate or are made for the purpose of financing permanent improvements to real estate. These policies must establish loan portfolio diversification standards; prudent underwriting standards, including loan-to-value limits, that are clear and measurable; loan administration procedures; and documentation, approval, and reporting requirements. A bank’s real estate lending policy must reflect consideration of the Interagency Guidelines for Real Estate Lending Policies (the “Interagency Guidelines”) adopted by the federal bank regulators. The Interagency Guidelines, among other things, call for internal loan-to-value limits for real estate loans that are not in excess of the limits specified in the guidelines. The Interagency Guidelines state, however, that it may be appropriate in individual cases to originate or purchase loans with loan-to-value ratios in excess of the supervisory loan-to-value limits.

The Bank’s deposits are insured up to applicable limits by the Deposit Insurance Fund of the FDIC. Large banks (generally, those with $10 billion or more in assets) are assigned an individual rate based on a scorecard that combines certain measures, including regulatory examination component ratings, to produce a score that is converted into an assessment rate. Assessment rates currently range from 1.5 to 40 basis points. No institution may pay a dividend if in default of the federal deposit insurance assessment. Deposit insurance assessments are based on total average assets, excluding PPP loans, less average tangible common equity. The FDIC has authority to increase insurance assessments. Management cannot predict what insurance assessment rates will be in the future.

Interchange fees, or “swipe” fees, are fees that merchants pay to credit card companies and debit card-issuing banks such as the Bank for processing electronic payment transactions on their behalf. The maximum permissible interchange fee that a non-exempt issuer may receive for an electronic debit transaction is the sum of 21 cents per transaction and 5 basis points multiplied by the value of the transaction, subject to an upward adjustment of 1 cent if an issuer certifies that it has implemented policies and procedures reasonably designed to achieve the fraud-prevention standards set forth by the Federal Reserve. In addition, card issuers and networks are prohibited from entering into arrangements requiring that debit card transactions be processed on a single network or only two affiliated networks, and allows merchants to determine transaction routing. Debit card issuers with total consolidated assets of less than $10 billion are exempt from these interchange fee restrictions. The exemption for small issuers ceases to apply as of July 1 of the year following the calendar year in which the debit card issuer has total consolidated assets of $10 billion or more at calendar year-end. In November 2020, the federal banking regulators adopted regulatory relief that allowed the Company to select either December 31, 2019, or December 31, 2020, whichever is the lower asset measurement, for purposes of determining its qualification for the small issuer exemption. As a result, the Company, which had total consolidated assets of less than $10 billion at December 31, 2019, will become subject to the interchange restrictions beginning July 1, 2022.

Consumer Financial Protection Laws and Enforcement

The Consumer Financial Protection Bureau (“CFPB”) is responsible for promoting fairness and transparency for mortgages, credit cards, deposit accounts and other consumer financial products and services and for interpreting and enforcing the federal consumer financial laws that govern the provision of such products and services. The CFPB is also authorized to prevent any institution under its authority from engaging in an unfair, deceptive, or abusive act or practice in connection with consumer financial products and services.

The CFPB has exclusive examination and primary enforcement authority with respect to compliance with federal consumer financial protection laws and regulations by institutions under its supervision and is authorized, individually or jointly with the federal banking agencies, to conduct investigations to determine whether any person is, or has, engaged in conduct that violates such laws or regulations. As an insured depository institution with total assets of more than $10 billion, the Bank is subject to the CFPB’s supervisory and enforcement authorities.

Regulation of Registered Investment Advisor Subsidiaries.

The Company's subsidiaries West Financial and RPJ are investment advisors registered with the SEC under the Investment Advisors Act of 1940. In this capacity, West Financial and RPJ are subject to oversight and inspections by the SEC. Among other things, registered investment advisors like West Financial and RPJ must comply with certain disclosure obligations, advertising and fee restrictions and requirements relating to client suitability and custody of funds and securities. Registered investment advisors are also subject to anti-fraud provisions under both federal and state law.

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Regulatory Capital Requirements

The Federal Reserve establishes capital and leverage requirements for the Company and the Bank. Specifically, the Company and the Bank are subject to the following minimum capital requirements: (1) a leverage ratio of 4%; (2) a common equity Tier 1 risk-based capital ratio of 4.5%; (3) a Tier 1 risk-based capital ratio of 6%; and (4) a total risk-based capital ratio of 8%.

The Company’s Common Equity Tier 1 capital consists solely of common stock plus related surplus and retained earnings, adjusted for goodwill, intangible assets and the related deferred taxes. Additional Tier 1 capital may include other perpetual instruments historically included in Tier 1 capital, such as non-cumulative perpetual preferred stock, if applicable. Capital rules also permit bank holding companies with less than $15 billion in total consolidated assets to continue to include trust preferred securities and cumulative perpetual preferred stock issued before May 19, 2010 in Tier 1 capital, but not in Common Equity Tier 1 capital, subject to certain restrictions. Tier 2 capital consists of unsecured instruments that are subordinated to deposits and general creditors and have a minimum original maturity of at least five years, among other requirements, plus instruments that the rule has disqualified from Tier 1 capital treatment. Instruments that are included in Tier 2 capital, but have a maturity of less than five years, must be ratably discounted over their remaining life until they reach maturity.

In addition, in order to avoid restrictions on capital distributions or discretionary bonus payments to executives, a covered banking organization must maintain a “capital conservation buffer” of 2.5 percent on top of its minimum risk-based capital requirements. This buffer must consist solely of Tier 1 Common Equity and the buffer applies to all three measurements: Common Equity Tier 1, Tier 1 capital and total capital.

Supervision and Regulation of Mortgage Banking Operations

The Company’s mortgage banking business is subject to the rules and regulations of the U.S. Department of Housing and Urban Development (“HUD”), the Federal Housing Administration (“FHA”), the Veterans’ Administration (“VA”) and Fannie Mae with respect to originating, processing, selling and servicing mortgage loans. Those rules and regulations, among other things, prohibit discrimination and establish underwriting guidelines, which include provisions for inspections and appraisals, require credit reports on prospective borrowers, and fix maximum loan amounts. Lenders such as the Company are required annually to submit audited financial statements to Fannie Mae, FHA and VA. Each of these regulatory entities has its own financial requirements. The Company’s affairs are also subject to examination by the Federal Reserve, Fannie Mae, FHA and VA at all times to assure compliance with the applicable regulations, policies and procedures. Mortgage origination activities are subject to, among others, the Equal Credit Opportunity Act, the Federal Truth-in-Lending Act, the Fair Housing Act, Fair Credit Reporting Act, the National Flood Insurance Act and the Real Estate Settlement Procedures Act and related regulations that prohibit discrimination and require the disclosure of certain basic information to mortgagors concerning credit terms and settlement costs. The Company’s mortgage banking operations are also affected by various state and local laws and regulations and the requirements of various private mortgage investors.

Community Reinvestment

Under the Community Reinvestment Act (“CRA”), a financial institution has a continuing and affirmative obligation to help meet the credit needs of the entire community, including low- and moderate-income neighborhoods. The CRA does not establish specific lending requirements or programs for financial institutions, or limit an institution’s discretion to develop the types of products and services that it believes are best suited to its particular community. However, institutions are rated on their performance in meeting the needs of their communities. Performance is tested in three areas: (a) lending, to evaluate the institution’s record of making loans in its assessment areas; (b) investment, to evaluate the institution’s record of investing in community development projects, affordable housing, and programs benefiting low- or moderate-income individuals and businesses; and (c) service, to evaluate the institution’s delivery of services through its branches, ATMs and other offices. The CRA requires each federal banking agency, in connection with its examination of a financial institution, to assess and assign one of four ratings to the institution’s record of meeting the credit needs of the community and to take such record into account in its evaluation of certain applications by the institution, including applications for charters, branches and other deposit facilities, relocations, mergers, consolidations, acquisitions of assets or assumptions of liabilities, and savings and loan holding company acquisitions. The CRA also requires that all institutions make public disclosure of their CRA ratings. The Bank was assigned an “outstanding” rating as a result of its last CRA examination.

Bank Secrecy Act

Under the Bank Secrecy Act (“BSA”), a financial institution is required to have systems in place to detect certain transactions, based on the size and nature of the transaction. Financial institutions are generally required to report cash transactions involving more than $10,000 to the United States Treasury. In addition, financial institutions are required to file suspicious activity reports for transactions that involve more than $5,000 and which the financial institution knows, suspects, or has reason to suspect involves illegal funds, is

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designed to evade the requirements of the BSA, or has no lawful purpose. The Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act, commonly referred to as the “USA Patriot Act” or the “Patriot Act”, contains prohibitions against specified financial transactions and account relationships, as well as enhanced due diligence standards intended to prevent the use of the United States financial system for money laundering and terrorist financing activities. The Patriot Act requires banks and other depository institutions, brokers, dealers and certain other businesses involved in the transfer of money to establish anti-money laundering programs, including employee training and independent audit requirements meeting minimum standards specified by the Patriot Act, to follow standards for customer identification and maintenance of customer identification records, and to compare customer lists against lists of suspected terrorists, terrorist organizations and money launderers. The Patriot Act also requires federal bank regulators to evaluate the effectiveness of an applicant in combating money laundering in determining whether to approve a proposed bank acquisition.

Other Laws and Regulations

Some of the aspects of the lending and deposit business of the Bank that are subject to regulation by the Federal Reserve and the FDIC include reserve requirements and disclosure requirements in connection with personal and mortgage loans and deposit accounts. In addition, the Bank is subject to numerous federal and state laws and regulations that include specific restrictions and procedural requirements with respect to the establishment of branches, investments, interest rates on loans, credit practices, the disclosure of credit terms, and discrimination in credit transactions.

Enforcement Actions

Federal statutes and regulations provide financial institution regulatory agencies with great flexibility to undertake an enforcement action against an institution that fails to comply with regulatory requirements. Possible enforcement actions range from the imposition of a capital plan and capital directive to civil money penalties, cease-and-desist orders, receivership, conservatorship, or the termination of the deposit insurance.

Information About Our Executive Officers

The following listing sets forth the name, age (as of February 18, 2022), principal position and recent business experience of each executive officer:

R. Louis Caceres, 59, became Executive Vice President and Chief Wealth Officer of the Bank in 2002. Prior to that, Mr. Caceres was a Senior Vice President of the Bank.

Kenneth C. Cook, 62, became Executive Vice President and Division President of Commercial Banking in 2020. Prior to that, Mr. Cook was the President and Co-CEO of Revere Bank.

Gary J. Fernandes, 53, became Executive Vice President and Chief Human Resources Officer in 2021. Mr. Fernandes joined the Bank in March 2015 after a career with a major international delivery and logistics company.

Aaron M. Kaslow, 57, became Executive Vice President, General Counsel and Secretary of the Company and Chief Legal Officer of the Bank in 2019. Prior to that, Mr. Kaslow was the leader of the Financial Institutions practice at the law firm of Kilpatrick Townsend & Stockton LLP.

Philip J. Mantua, CPA, 63, became Executive Vice President and Chief Financial Officer of the Company and the Bank in 2004. Prior to that, Mr. Mantua was Senior Vice President of Managerial Accounting.

Ronda M. McDowell, 57, became an Executive Vice President and Chief Operations Officer of the Bank in 2021. Prior to that, Ms. McDowell served as an Executive Vice President and Chief Credit Officer of the Bank.

Joseph J. O'Brien, Jr., 58, became Executive Vice President and Chief Banking Officer in 2011. Mr. O’Brien joined the Bank in July 2007 as Executive Vice President for Commercial Banking.

John D. Sadowski, 58, became Executive Vice President and Chief Information Officer of the Bank in 2011. Prior to that, Mr. Sadowski served as a Senior Vice President of the Bank.

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Daniel J. Schrider, 57, became President of the Company and the Bank effective March 26, 2008 and Chief Executive Officer effective January 1, 2009. Prior to that, Mr. Schrider served as an Executive Vice President and Chief Revenue Officer of the Bank.

Kevin Slane, 62, became Executive Vice President and Chief Risk Officer of the Bank in 2018. Prior to that, Mr. Slane was the Director of Enterprise Risk Management at Hancock Whitney Bank in the southeast United States.

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Item 1A. RISK FACTORS

Investing in the Company’s common stock involves risks, including the possibility that the value of the investment could fall substantially and that dividends or other distributions could be reduced or eliminated. Investors should carefully consider the following risk factors before making an investment decision regarding the Company’s stock. The risk factors may cause the Company’s future earnings to be lower or its financial condition to be less favorable than expected, which could adversely affect the value of, and return on, an investment in the Company. In addition, other risks that the Company is not aware of, or which are not believed to be material, may cause earnings to be lower, or may deteriorate the financial condition of the Company. Consideration should also be given to the other information in this Annual Report on Form 10-K, as well as in the documents incorporated by reference into this Form 10-K.

Risks Related to the COVID-19 Pandemic

The ongoing COVID-19 pandemic and measures taken to limit its spread could adversely our business, financial condition, and results of operations.

The COVID-19 pandemic has negatively impacted economic and commercial activity and financial markets, both globally and within the United States. Measures to contain the virus, such as stay-at-home orders, travel restrictions, closure of non-essential businesses, occupancy limitations and social distancing requirements, resulted in significant business and operational disruptions, including business closures, and mass layoffs and furloughs. Though most restrictions have generally been lifted or eased and consumer and business spending and unemployment levels have improved significantly, the economic recovery has been uneven, with industries such as travel, entertainment, hospitality and food service lagging, and, as of December 31, 2021, many companies have not returned workers to their offices. Supply chain disruptions precipitated by the abrupt economic slowdown have contributed to increased costs, lost revenue, and inflationary pressures for many segments of the economy. Further, a significant number of workers left their jobs during the COVID-19 pandemic, leading to wage inflation in many industries as businesses attempt to fill vacant positions.

The United States government has taken significant steps to attempt to mitigate the economic effects of the pandemic. Congress appropriated approximately $4.7 trillion of fiscal stimulus in response to the COVID-19 pandemic pursuant to the Coronavirus Aid, Relief, and Economic Security Act, the American Rescue Plan Act and other supplemental legislation. In March 2020, the Federal Open Market Committee of the Federal Reserve reduced the target range for the federal funds rate to between 0.0% and 0.25%, compared to the previous target of between 1.00% and 1.25%. The Federal Reserve also took several actions to support financial markets, enable banks to continue to lend through the pandemic, and support businesses of all sizes. Whether the economic stimulus will have a lasting positive effect or whether it will contribute to higher inflation or other economic ill effects is unknown.

Several vaccines for COVID-19 have been developed and widely distributed in the United States. However, it is unknown how effective they will be long-term or whether variants of the virus will develop against which the vaccines are less effective.

The extent to which the COVID-19 pandemic will ultimately affect our business is unknown and will depend, among other things, on the duration of the pandemic, the actions undertaken by national, state and local governments and health officials to contain the virus or mitigate its effects, the safety and effectiveness of the vaccines that have been developed and the extent to which they are accepted by the public, the development of effective therapies, the permanence of operating conditions that developed during the pandemic, and how quickly and to what extent economic conditions improve and normal business and operating conditions resume. The longer the pandemic persists, the more pronounced the ultimate effects are likely to be.

The continuation of the COVID-19 pandemic and the efforts to contain the virus, including effects of economic stimulus, and the exhaustion or expiration of stimulus benefits, could:

•reduce the demand for loans and other financial services;

•result in increases in loan delinquencies, problem assets, and foreclosures;

•cause the value of collateral for loans, especially real estate, to decline in value;

•reduce the availability and productivity of our employees;

•cause our vendors and counterparties to be unable to meet existing obligations to us;

•negatively impact the business and operations of third-party service providers that perform critical services for our business;

•cause the value of our securities portfolio to decline; and

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•cause the net worth and liquidity of loan guarantors to decline, impairing their ability to honor commitments to us.

Any one or a combination of the above events could have a material, adverse effect on our business, financial condition, and results of operations.

Risks Related to the Economy, Financial Markets, Interest Rates and Liquidity

The geographic concentration of the Company’s operations makes the Company susceptible to downturns in local economic conditions.

The Company’s lending operations are concentrated in central Maryland, Northern Virginia and Washington D.C. The Company’s success depends in part upon economic conditions in these markets. Adverse changes in economic conditions in these markets could limit growth in loans and deposits, impair the Company’s ability to collect amounts due on loans, increase problem loans and charge-offs and otherwise negatively affect the Company’s performance and financial condition. Declines in real estate values could cause some of the Company’s residential and commercial real estate loans to be inadequately collateralized, which would expose the Company to a greater risk of loss in the event that the recovery on amounts due on defaulted loans is resolved by selling the real estate collateral under duress or to expedite payment.

Changes in interest rates may adversely affect earnings and financial condition.

The Company’s net income depends to a great extent upon the level of net interest income. Changes in interest rates can increase or decrease net interest income and net income. Net interest income is the difference between the interest income earned on loans, investments, and other interest-earning assets, and the interest paid on interest-bearing liabilities, such as deposits and borrowings. Net interest income is affected by changes in market interest rates, because different types of assets and liabilities may react differently, and at different times, to market interest rate changes. When interest-bearing liabilities mature or re-price more quickly than interest-earning assets in a period, an increase in market rates of interest could reduce net interest income. Similarly, when interest-earning assets mature or re-price more quickly than interest-bearing liabilities, falling interest rates could reduce net interest income.

Changes in market interest rates are affected by many factors beyond the Company’s control, including inflation, unemployment, money supply, fiscal policies of the U.S. government, domestic and international events, and events in U.S. and other financial markets. The Company attempts to manage its risk from changes in market interest rates by adjusting the rates, maturity, re-pricing, and balances of the different types of interest-earning assets and interest-bearing liabilities, but interest rate risk management techniques are not exact. As a result, a rapid increase or decrease in interest rates could have an adverse effect on the Company’s net interest margin and results of operations. Changes in the market interest rates for types of products and services in various markets also may vary significantly from location to location and over time based upon competition and local or regional economic factors.

At December 31, 2021, the Company’s interest rate sensitivity simulation model projected that net interest income would increase by 2.16% if interest rates immediately rose by 100 basis points. The results of an interest rate sensitivity simulation model depend upon a number of assumptions regarding customer behavior, movement of interest rates and cash flows, any of which may prove to be inaccurate. For further discussion regarding the impact of interest rates movements on net interest income, refer to the Market Risk Management section of Management's Discussion and Analysis on page 63.

Changes to and replacement of the LIBOR Benchmark Interest Rate may adversely affect our business, financial condition, and results of operations.

The Company has certain loans, interest rate swap agreements, investment securities and debt obligations whose interest rate is indexed to the London InterBank Offered Rate (LIBOR). In 2017, the United Kingdom’s Financial Conduct Authority (the "FCA"), which is responsible for regulating LIBOR, announced that the publication of LIBOR is not guaranteed beyond 2021. In December 2020, the administrator of LIBOR announced its intention to (i) cease the publication of the one-week and two-month U.S. dollar LIBOR after December 31, 2021, and (ii) cease the publication of all other tenors of U.S. dollar LIBOR (one, three, six and 12 month LIBOR) after June 30, 2023. The FCA has stated that is does not intend to persuade or compel banks to submit to LIBOR after such respective dates. Until such time, however, FCA panel banks have agreed to continue to support LIBOR. In October 2021, the federal bank regulatory agencies issued a Joint Statement on Managing the LIBOR Transition. In that guidance, the agencies offered their regulatory expectations and outlined potential supervisory and enforcement consequences for banks that fail to adequately plan for and implement the transition away from LIBOR. The failure to properly transition away from LIBOR may result in increased supervisory scrutiny. The language in the Company’s LIBOR-based contracts and financial instruments has developed over time and may have

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various events that trigger when a successor index to LIBOR would be selected. If a trigger is satisfied, contracts and financial instruments may give the Company or the calculation agent, as applicable, discretion over the selection of the substitute index for the calculation of interest rates. The implementation of a substitute index for the calculation of interest rates under the Company’s loan agreements may result in disputes or litigation with counter-parties over the appropriateness or comparability to LIBOR of the substitute index, which could have an adverse effect on the Company’s results of operations. Even when robust fallback language is included, there can be no assurance that the replacement rate plus any spread adjustment will be economically equivalent to LIBOR, which could result in a lower interest rate being paid to the Company on such assets. To mitigate the risks associated with the expected discontinuation of LIBOR, the Company implemented enhanced fallback language for LIBOR-linked commercial loans, adhered to the International Swaps and Derivatives Association 2020 Fallbacks Protocol for interest rate swap agreements, and has updated its systems to accommodate alternative reference rates, and began originating loans utilizing alternative reference rates at the end of 2021.

The Alternative Reference Rates Committee (a group of private-market participants convened by the Federal Reserve Board and the Federal Reserve Bank of New York) has identified the Secured Overnight Financing Rate, or SOFR, as the recommend alternative to LIBOR. The use of SOFR as a substitute for LIBOR is voluntary and may not be suitable for all market participants. SOFR is calculated based on overnight transactions under repurchase agreements, backed by Treasury securities. SOFR is observed and backward looking, which stands in contrast with LIBOR under the current methodology, which is an estimated forward-looking rate and relies, to some degree, on the expert judgment of submitting panel members. Given that SOFR is a secured rate backed by government securities, it does not take into account bank credit risk (as is the case with LIBOR). SOFR is therefore likely to be lower than LIBOR and is less likely to correlate with the funding costs of financial institutions. To approximate economic equivalence to LIBOR, SOFR can be compounded over a relevant term and a spread adjustment may be added. Market practices related to SOFR calculation conventions continue to develop and may vary. Inconsistent calculation conventions among financial products may expose us to increased basis risk and resulting costs.

Other alternatives to LIBOR also exist. The American Financial Exchange (“AFX”) has also created the American Interbank Offered Rate (“Ameribor”) as another potential replacement for LIBOR. Ameribor is calculated daily as the volume-weighted average interest rate of the overnight unsecured loans on AFX. Because of the difference in how it is constructed, Ameribor may diverge significantly from LIBOR in a range of situations and market conditions. Credit sensitive rates may become unrepresentative or subject to manipulation to the extent that they are based on a low volume of underlying transactions and sensitive to market stress.

The Company is subject to liquidity risks.

Effective liquidity management is essential for the operation of the Company’s business. The Company requires sufficient liquidity to meet customer loan requests, customer deposit maturities/withdrawals, payments on debt obligations as they come due and other cash commitments under both normal operating conditions and other unpredictable circumstances causing industry or general financial market stress. The Company’s access to funding sources in amounts adequate to finance its activities on terms that are acceptable to the Company could be impaired by factors that affect the Company specifically or the financial services industry or economy generally. Core deposits and FHLB advances are the Company’s primary source of funding. A significant decrease in core deposits, an inability to renew FHLB advances, an inability to obtain alternative funding to core deposits or FHLB advances, or a substantial, unexpected, or prolonged change in the level or cost of liquidity could have a negative effect on the Company’s business, financial condition and results of operations.

The Company’s investment securities portfolio is subject to credit risk, market risk, and liquidity risk.

The investment securities portfolio has risk factors beyond the Company’s control that may significantly influence its fair value. These risk factors include, but are not limited to, rating agency downgrades of the securities, defaults of the issuers of the securities, lack of market pricing of the securities, and instability in the credit markets. Lack of market activity with respect to some securities has, in certain circumstances, required the Company to base its fair market valuation on unobservable inputs. Any changes in these risk factors, in current accounting principles or interpretations of these principles could impact the Company’s assessment of fair value. Adjustments to the allowance for credit losses on available-for-sale investment securities would negatively affect the Company’s earnings and regulatory capital ratios.

Credit Risks

The Company’s allowance for credit losses may not be adequate to cover its actual credit losses, which could adversely affect the Company’s financial condition and results of operations.

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The Company maintains an allowance for credit losses in an amount that is believed to be appropriate to provide for expected losses inherent in the portfolio. The Company has a proactive program to monitor credit quality and to identify loans that may become non-performing; however, at any time there could be loans in the portfolio that may result in losses, but that have not been identified as non-performing or potential problem credits. The Company may be unable to identify all deteriorating credits prior to them becoming non-performing assets, or to limit losses on those loans that are identified. As a result, future additions to the allowance may be necessary. Additionally, future additions to the allowance may be required based on changes in the forecasted economic conditions, changes in the loans comprising the portfolio and changes in the financial condition of borrowers, or as a result of assumptions used by management in determining the allowance. Additionally, banking regulators, as an integral part of their supervisory function, periodically review the adequacy of the Company’s allowance for credit losses. These regulatory agencies may require an increase in the provision for expected credit losses or to recognize further loan charge-offs based upon their judgments, which may be different from the Company’s. Any increase in the allowance for credit losses could have a negative effect on the financial condition and results of operations of the Company.

The Company may not be able to adequately measure and limit its credit risk, which could lead to unexpected losses.

The business of lending is inherently risky, including risks that the principal of or interest on any loan will not be repaid timely, or at all, or that the value of any collateral supporting the loan will be insufficient to cover the Company’s outstanding exposure. These risks may be affected by the strength of the borrower’s business sector and local, regional and national market and economic conditions. Many of the Company’s loans are made to small- to medium-sized businesses that may be less able to withstand competitive, economic and financial pressures than larger borrowers. The Company’s risk management practices, such as monitoring the concentration of loans within specific industries and credit approval practices, may not adequately reduce credit risk, and credit administration personnel, policies and procedures may not adequately adapt to changes in economic or any other conditions affecting customers and the quality of the loan portfolio. A failure to effectively measure and limit the credit risk associated with the Company’s loan portfolio could lead to unexpected losses and have a material adverse effect on the Company’s business, financial condition and results of operations.

If non-performing assets increase, earnings will be adversely impacted.

Non-performing assets adversely affect net income in various ways. Interest income is not accrued on non-accrual loans or other real estate owned. The Company must record a reserve for expected credit losses, which is established through a current period charge in the form of a provision for expected credit losses, and from time to time must write-down the value of properties in the Company’s other real estate owned portfolio to reflect changing market values. Additionally, there are legal fees associated with the resolution of problem assets as well as carrying costs such as taxes, insurance and maintenance related to other real estate owned. Further, the resolution of non-performing assets requires the active involvement of management, which can distract them from more profitable activities. Finally, if the estimate for the recorded allowance for credit losses proves to be incorrect and the allowance is inadequate, the allowance will have to be increased and, as a result, the Company's earnings would be adversely affected.

The Company’s commercial real estate lending activities expose it to increased lending risks and related loan losses.

At December 31, 2021, the Company’s commercial real estate loan portfolio totaled $6.9 billion, or 69% of its total loan portfolio. Commercial real estate loans generally expose a lender to greater risk of non-payment and loss than one-to-four family residential mortgage loans because repayment of the loans often depends on the successful operation of the properties and the income stream of the borrowers. These loans involve larger loan balances to single borrowers or groups of related borrowers compared to one-to-four family residential mortgage loans. To the extent that borrowers have more than one commercial real estate loan outstanding, an adverse development with respect to one loan or one credit relationship could expose the Company to a significantly greater risk of loss compared to an adverse development with respect to a one-to-four family residential real estate loan. Moreover, if loans that are collateralized by commercial real estate become troubled and the value of the real estate has deteriorated significantly, then the Company may not be able to recover the full contractual amount of principal and interest that the Company anticipated at the time it originated the loan. A decline in the value of the collateral for a loan may require the Company to increase its allowance for credit losses, which would adversely affect the Company’s earnings and financial condition.

Imposition of limits by the bank regulators on commercial real estate lending activities could curtail the Company’s growth and adversely affect its earnings.

Regulatory guidance on concentrations in commercial real estate lending provides that a bank’s commercial real estate lending exposure could receive increased supervisory scrutiny where total commercial investor real estate loans, including loans secured by apartment buildings, nonowner-occupied investor real estate, and construction and land loans, represent 300% or more of an institution’s total risk-based capital, and the outstanding balance of the commercial real estate loan portfolio has increased by 50% or

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more during the preceding 36 months. At December 31, 2021, the Bank’s total commercial investor real estate loans, including loans secured by apartment buildings, nonowner-occupied commercial real estate, and construction and land loans represented 380% of the Bank’s total risk-based capital and the growth in the commercial real estate ("CRE") portfolio exceeded 67% over the preceding 36 months, significantly driven by the 2020 acquisition of Revere. Management has established a CRE lending framework to monitor specific exposures and limits by types within the CRE portfolio and takes appropriate actions, as necessary. If the Federal Reserve, the Bank’s primary federal regulator, were to impose restrictions on the amount of commercial real estate loans the Bank can hold in its portfolio, the Company’s earnings would be adversely affected.

The Company’s concentration of residential mortgage loans exposes it to increased lending risks.

At December 31, 2021, 11%, of the Company’s loan portfolio was secured by one-to-four family real estate, a significant majority of which is located in central Maryland, Northern Virginia and Washington, D.C. One-to-four family residential mortgage lending is generally sensitive to regional and local economic conditions that significantly impact the ability of borrowers to meet their loan payment obligations, making loss levels difficult to predict. Declines in real estate values could cause some of the Company’s residential mortgages to be inadequately collateralized, which would expose the Company to a greater risk of loss if it seeks to recover on defaulted loans by selling the real estate collateral.

The Company may be subject to certain risks related to originating and selling mortgage loans.

When mortgage loans are sold, it is customary to make representations and warranties to the purchaser about the mortgage loans and the manner in which they were originated. Whole loan sale agreements require the repurchase or substitution of mortgage loans in the event the Company breaches any of these representations or warranties. In addition, there may be a requirement to repurchase mortgage loans as a result of borrower fraud or in the event of early payment default of the borrower on a mortgage loan. The Company receives a limited number of repurchase and indemnity demands from purchasers as a result of borrower fraud and early payment default of the borrower on mortgage loans. If repurchase and indemnity demands increase materially, the Company’s results of operations could be adversely affected.

Any delays in the Company’s ability to foreclose on delinquent mortgage loans may negatively impact the Company’s business.

The origination of mortgage loans occurs with the expectation that, if the borrower defaults, the ultimate loss would be mitigated by the value of the collateral that secures the mortgage loan. The ability to mitigate the losses on defaulted loans depends upon the ability to promptly foreclose upon the collateral after an appropriate cure period. The length of the foreclosure process depends on state law and other factors, such as the volume of foreclosures and actions taken by the borrower to stop the foreclosure. Any delay in the foreclosure process will adversely affect the Company by increasing the expenses related to carrying such assets, such as taxes, insurance, and other carrying costs, and exposes the Company to losses as a result of potential additional declines in the value of such collateral.

Risks Related to the Company’s Trust and Wealth Management Business

The Company’s trust and wealth management fees may decrease as a result of poor investment performance, in either relative or absolute terms, which could decrease the Company’s revenues and net earnings.

The Company’s trust and wealth management businesses derive a significant amount of their revenues from investment management fees based on assets under management. The Company’s ability to maintain or increase assets under management is subject to a number of factors, including investors’ perception of the Company’s past performance, in either relative or absolute terms, general market and economic conditions, and competition from other investment management firms. A decline in the fair value of the assets under management would decrease the Company’s trust and wealth management fee income.

Investment performance is one of the most important factors in retaining existing clients and competing for new trust and wealth management clients. Poor investment performance could reduce the Company’s revenues and impede the growth of the Company’s trust and wealth management business in the following ways: existing clients may withdraw funds from the Company’s trust and wealth management business in favor of better performing products or firms; asset-based management fees could decline from a decrease in assets under management; the Company’s ability to attract funds from existing and new clients might diminish; and the Company’s portfolio managers may depart, to join a competitor or otherwise.

Even when market conditions are generally favorable, the Company’s investment performance may be adversely affected by the investment style of its portfolio managers and the particular investments that they make or recommend. To the extent that the Company’s future investment performance is perceived to be poor in either relative or absolute terms, the revenues and profitability of

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the Company’s trust and wealth management business will likely be reduced and the Company’s ability to attract new clients will likely be impaired.

The Company’s investment management contracts are terminable without cause and on relatively short notice by the Company’s clients, which makes the Company vulnerable to short-term declines in the performance of the securities under the Company’s management.

Like most wealth management businesses, the investment advisory contracts the Company maintains with its clients are typically terminable by the client without cause upon less than 30 days’ notice. As a result, even short-term declines in the performance of the accounts that the Company manages, which can result from factors outside the Company’s control, such as adverse changes in general market or economic conditions or the poor performance of some of the investments the Company has recommended to its clients, could lead some of the Company’s clients to move assets under the Company’s management to other investment advisors that have investment product offerings or investment strategies different than the Company’s. A decline in assets under management, and a corresponding decline in investment management fees, would adversely affect the Company’s results of operations.

The wealth management business is heavily regulated, and the regulators have the ability to limit or restrict the Company’s activities and impose fines or suspensions on the conduct of the Company’s business.

The wealth management business is highly regulated, primarily at the federal level. The failure of the Company’s subsidiaries that are registered investment advisors to comply with applicable laws or regulations could result in fines, suspensions of individual employees or other sanctions including revocation of such subsidiaries’ registration as an investment adviser. Changes in the laws or regulations governing the Company’s wealth management business could have a material adverse impact on the Company’s business, financial condition and results of operations.

Strategic and Other Risks

Combining acquired businesses may be more difficult, costly or time consuming than expected and the anticipated benefits and cost savings of acquisitions may not be realized.

The success of the Company’s mergers and acquisitions, including anticipated benefits and cost savings, will depend, in part, on the Company’s ability to successfully combine and integrate the acquired business in a manner that permits growth opportunities and does not materially disrupt existing customer relations nor result in decreased revenues due to loss of customers. It is possible that the integration process could result in the loss of key employees, the disruption of either company’s ongoing businesses or inconsistencies in standards, controls, procedures and policies that adversely affect the combined company’s ability to maintain relationships with clients, customers, depositors, employees and other constituents or to achieve the anticipated benefits and cost savings of the transaction. The loss of key employees could adversely affect the Company’s ability to successfully conduct its business, which could have an adverse effect on the Company’s financial results and the value of its common stock. If the Company experiences difficulties with the integration process, the anticipated benefits of a transaction may not be realized fully or at all, or may take longer to realize than expected. As with any merger of financial institutions, there also may be business disruptions that cause the Company to lose customers or cause customers to remove their accounts from the Company and move their business to competing financial institutions. Integration efforts will also divert management attention and resources. These integration matters could have an adverse effect on the Company during this transition period and for an undetermined period after completion of a transaction. It is possible that the potential cost savings could turn out to be more difficult to achieve than anticipated. The cost savings estimates also depend on the ability to combine the businesses in a manner that permits those cost savings to be realized.

The Company depends on its executive officers and key personnel to continue the implementation of its long-term business strategy and could be harmed by the loss of their services.

The Company believes that its continued growth and future success will depend in large part on the skills of its management team , as well as on its ability to attract, motivate and retain highly qualified senior and middle management and other skilled employees. The loss of service of one or more of the Company’s executive officers or key personnel could reduce the Company’s ability to successfully implement its long-term business strategy, its business could suffer and the value of the Company’s common stock could be materially adversely affected. Leadership changes will occur from time to time and the Company cannot predict whether significant resignations will occur or whether the Company will be able to recruit additional qualified personnel. The Company believes its management team possesses valuable knowledge about the banking industry and the Company’s markets and that their knowledge and relationships would be very difficult to replicate. Although the Company’s Chief Executive Officer and certain other executive officers have entered into employment agreements with the Company, it is possible that they may not complete the term of their employment agreements or renew them upon expiration. The Company’s success also depends on the experience of its branch

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managers and lending officers and on their relationships with the customers and communities they serve. The loss of these key personnel could negatively affect the Company’s banking operations. Competition for qualified employees is intense, and the process of locating key personnel with the combination of skills, attributes and business relationships required to execute the Company’s business plan may be lengthy. The loss of key personnel, or the inability to recruit and retain qualified personnel in the future, could have an adverse effect on the Company’s business, financial condition and results of operations.

Restrictions on unfriendly acquisitions could prevent a takeover of the Company.

The Company’s articles of incorporation and bylaws contain provisions that could discourage takeover attempts that are not approved by the Company’s board of directors. The Maryland General Corporation Law also includes provisions that make an acquisition of the Company more difficult. These provisions include super-majority provisions for the approval of certain business combinations and certain provisions relating to meetings of shareholders. The Company’s articles of incorporation also authorize the issuance of additional shares by the board of directors without shareholder approval on terms or in circumstances that could deter a future takeover attempt. These provisions may prevent a future takeover attempt in which the shareholders otherwise might receive a substantial premium for their shares over then-current market prices.

Market competition may decrease the Company’s growth or profits.

The Company competes for loans, deposits, and investment dollars with other banks and other financial institutions and enterprises, such as securities firms, insurance companies, savings associations, credit unions, mortgage brokers, and private lenders, many of which have substantially greater resources than possessed by the Company. Credit unions have federal tax exemptions, which may allow them to offer lower rates on loans and higher rates on deposits than taxpaying financial institutions such as commercial banks. In addition, non-depository institution competitors are generally not subject to the extensive regulation applicable to institutions that offer federally insured deposits. Other institutions may have other competitive advantages in particular markets or may be willing to accept lower profit margins on certain products. These differences in resources, regulation, competitive advantages, and business strategy create a competitive landscape that may decrease the Company’s net interest margin, increase the Company’s operating costs, and may make it harder to compete profitably.

Operational Risks

The high volume of transactions processed by the Company exposes the Company to significant operational risks.

The Company relies on the ability of its employees and systems to process a high number of transactions. Operational risk is the risk of loss resulting from the Company’s operations, including, but not limited to, the risk of fraud by employees or outside persons, the execution of unauthorized transactions by employees, errors relating to transaction processing and technology, breaches of the Company’s internal control system and compliance requirements, and business continuation and disaster recovery. Insurance coverage may not be available for such losses, or where available, such losses may exceed insurance limits. This risk of loss also includes the potential legal actions that could arise as a result of an operational deficiency or as a result of noncompliance with applicable regulations, adverse business decisions or their implementation, and customer attrition due to potential negative publicity. A breakdown in the Company’s internal control system, improper operation of systems or improper employee actions could result in material financial loss, the imposition of regulatory action, and damage to the Company’s reputation.

Failure to keep up with technological change in the financial services industry could have a material adverse effect on the Company’s competitive position or profitability.

The financial services industry is undergoing rapid technological change with frequent introductions of new technology-driven products and services. The effective use of technology increases efficiency and enables financial institutions to better serve customers and to reduce costs. The Company’s future success depends, in part, upon its ability to address the needs of its customers by using technology to provide products and services that will satisfy customer demands, as well as to create additional efficiencies in the Company’s operations. Many of the Company’s competitors have substantially greater resources to invest in technological improvements. The Company may not be able to effectively implement new technology-driven products and services or be successful in marketing these products and services to its customers. Failure to successfully keep pace with technological changes affecting the financial services industry could have a material adverse effect on the Company’s business, financial condition and results of operations.

The Company’s risk management framework may not be effective in mitigating risks and/or losses to the Company.

The Company’s risk management framework is comprised of various processes, systems and strategies, and is designed to manage the types of risk to which the Company is subject, including, among others, credit, market, liquidity, interest rate, operational and

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compliance. The Company’s framework also includes financial or other modeling methodologies that involve management assumptions and judgment. The Company’s risk management framework may not be effective under all circumstances and may not adequately mitigate any risk or loss to the Company. If the Company’s risk management framework is not effective, the Company could suffer unexpected losses and the Company’s business, financial condition, or results of operations could be materially and adversely affected. The Company may also be subject to potentially adverse regulatory consequences.

The Company’s information systems may experience an interruption or security breach.

The Company relies heavily on communications and information systems to conduct its business. The Company, its customers, and other financial institutions with which the Company interacts, are subject to ongoing, continuous attempts to penetrate key systems by individual hackers, organized criminals, and in some cases, state-sponsored organizations. Any failure, interruption or breach in security of these systems could result in failures or disruptions in the Company’s customer relationship management, general ledger, deposit, loan and other systems, misappropriation of funds, and theft of proprietary Company or customer data. While the Company has policies and procedures designed to prevent or limit the effect of the possible failure, interruption or security breach of the Company’s information systems, there can be no assurance that any such failure, interruption or security breach will not occur or, if they do occur, that they will be adequately addressed. The occurrence of any failure, interruption or security breach of the Company’s information systems could damage its reputation, result in a loss of customer business, subject the Company to additional regulatory scrutiny, require the Company to incur additional expense, or expose the Company to civil litigation and possible financial liability.

Security breaches and other disruptions could compromise the Company’s information and expose the Company to liability, which would cause its business and reputation to suffer.

In the ordinary course of the Company’s business, the Company collects and stores sensitive data, including intellectual property, its proprietary business information and that of the Company’s customers, suppliers and business partners, and personally identifiable information of its customers and employees, in the Company’s third-party data centers and on its networks. The secure processing, maintenance and transmission of this information is critical to the Company’s operations and business strategy. Despite the security measures the Company has implemented to help ensure data security and compliance with applicable laws, rules and regulations, which include firewalls, regular penetration testing and other measures, the Company’s facilities and systems, and those of the Company’s third-party service providers and vendors, may be vulnerable to cyber-attacks, security breaches, ransomware, unauthorized activity and access, malicious code, acts of vandalism, computer viruses, theft of data, misplaced or lost data, fraud, misconduct or misuse, social engineering attacks and denial of service attacks, phishing attacks, programming or human errors, physical break-ins, or other disruptions, any of which could result in the loss or disclosure of confidential or personal client or employee information or the Company’s own proprietary information. Any such loss or disclosure of confidential information could result in legal claims or proceedings, liability under laws that protect the privacy of personal information, and regulatory penalties, disrupt the Company’s operations and the services it provides to customers, damage its reputation, and cause a loss of confidence in its products and services, which could adversely affect the Company’s business, revenues and competitive position.

The Company is subject to laws regarding the privacy, information security and protection of personal information and any violation of these laws or another incident involving personal, confidential or proprietary information of individuals could damage the Company’s reputation and otherwise adversely affect the Company’s business, financial condition and earnings. The Company’s business requires the collection and retention of large volumes of customer data, including personally identifiable information in various information systems that the Company maintains and in those maintained by third parties with whom the Company contracts to provide data services. The Company also maintains important internal company data such as personally identifiable information about its employees and information relating to its operations. The Company is subject to complex and evolving laws and regulations governing the privacy and protection of personal information of individuals (including customers, employees, suppliers and other third parties). For example, the Company’s business is subject to the Gramm-Leach-Bliley Act which, among other things: (i) imposes certain limitations on the Company’s ability to share nonpublic personal information about its customers with non-affiliated third parties; (ii) requires that the Company provide certain disclosures to customers about its information collection, sharing and security practices and afford customers the right to “opt out” of any information sharing by the Company with non-affiliated third parties (with certain exceptions); and (iii) requires that the Company develop, implement and maintain a written comprehensive information security program containing appropriate safeguards based on the Company’s size and complexity, the nature and scope of its activities, and the sensitivity of customer information it processes, as well as plans for responding to data security breaches. Various state and federal laws and regulations impose data security breach notification requirements with varying levels of individual, consumer, regulatory or law enforcement notification in certain circumstances in the event of a security breach. Ensuring that the Company’s collection, use, transfer and storage of personal information complies with all applicable laws and regulations can increase costs.

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Furthermore, the Company may not be able to ensure that all of its clients, suppliers, counterparties and other third parties have appropriate controls in place to protect the confidentiality of the information that they exchange with the Company, particularly where such information is transmitted by electronic means. If personal, confidential or proprietary information of customers or others were to be mishandled or misused (in situations where, for example, such information was erroneously provided to parties who are not permitted to have the information, or where such information was intercepted or otherwise compromised by third parties), the Company could be exposed to litigation or regulatory sanctions under personal information laws and regulations. Concerns regarding the effectiveness of the Company’s measures to safeguard personal information, or even the perception that such measures are inadequate, could cause the Company to lose customers or potential customers for its products and services and thereby reduce its revenues. Accordingly, any failure or perceived failure to comply with applicable privacy or data protection laws and regulations may subject the Company to inquiries, examinations and investigations that could result in requirements to modify or cease certain operations or practices or in significant liabilities, fines or penalties, and could damage the Company’s reputation and otherwise adversely affect the Company’s business, financial condition and earnings.

The reliance of the Company on third-party vendors could expose it to additional cyber risk and liability.

The operation of the Company’s business involves outsourcing of certain business functions and reliance on third-party providers, which may result in transmission and maintenance of personal, confidential, and proprietary information to and by such vendors. Although the Company requires third-party providers to maintain certain levels of information security, such providers remain vulnerable to breaches, unauthorized access, misuse, computer viruses, or other malicious attacks that could ultimately compromise sensitive information possessed by the Company. Although the Company contracts to limit its liability in connection with attacks against third-party providers, the Company remains exposed to risk of loss associated with such vendors.

The Company outsources certain aspects of its data processing to certain third-party providers, which may expose it to additional risk.

The Company outsources certain key aspects of the Company’s data processing to certain third-party providers. While the Company has selected these third-party providers carefully, it cannot control their actions. If the Company’s third-party providers encounter difficulties, including those that result from their failure to provide services for any reason or their poor performance of services, or if the Company has difficulty in communicating with them, its ability to adequately process and account for customer transactions could be affected, and the Company’s business operations could be adversely impacted. Replacing these third-party providers could also entail significant delay and expense.

The Company’s third-party providers may be vulnerable to unauthorized access, computer viruses, phishing schemes and other security breaches. Threats to information security also exist in the processing of customer information through various other third-party providers and their personnel. The Company may be required to expend significant additional resources to protect against the threat of such security breaches and computer viruses, or to alleviate problems caused by such security breaches or viruses. To the extent that the activities of the Company’s third-party providers or the activities of the Company’s customers involve the storage and transmission of confidential information, security breaches and viruses could expose the Company to claims, regulatory scrutiny, litigation and other possible liabilities.

The Company is dependent on its information technology and telecommunications systems; third-party service providers and systems failures, interruptions or breaches of security could have an adverse effect on its financial condition and results of operations.

The Company’s business is highly dependent on the successful and uninterrupted functioning of its information technology and telecommunications systems third-party service providers. The Company outsources many of its major systems, such as data processing and deposit processing systems. The failure of these systems, or the termination of a third-party software license or service agreement on which any of these systems is based, could interrupt the Company’s operations. Because the Company’s information technology and telecommunications systems interface with and depend on third-party systems, it could experience service denials if demand for such services exceeds capacity or such third-party systems fail or experience interruptions. If sustained or repeated, a system failure or service denial could result in a deterioration of the Company’s ability to provide customer service, compromise its ability to operate effectively, damage the Company’s reputation, result in a loss of customer business and/or subject the Company to additional regulatory scrutiny and possible financial liability, any of which could have a material adverse effect on the Company’s financial condition and results of operations.

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In addition, the Company provides its customers the ability to bank remotely, including online over the internet. The secure transmission of confidential information is a critical element of remote banking. The Company’s network could be vulnerable to unauthorized access, computer viruses, phishing schemes, spam attacks, human error, natural disasters, power loss and other security breaches. The Company may be required to spend significant capital and other resources to protect against the threat of security breaches and computer viruses, or to alleviate problems caused by security breaches or viruses. Further, the Company outsources some of the data processing functions used for remote banking, and accordingly it is dependent on the expertise and performance of its third-party providers. To the extent that the Company’s activities, the activities of its customers, or the activities of the Company’s third-party service providers involve the storage and transmission of confidential information, security breaches and viruses could expose the Company to claims, litigation and other possible liabilities. Any inability to prevent security breaches or computer viruses could also cause existing customers to lose confidence in the Company’s systems and could adversely affect its reputation, results of operations and ability to attract and maintain customers and businesses. In addition, a security breach could also subject the Company to additional regulatory scrutiny, expose it to civil litigation and possible financial liability and cause reputational damage.

The adoption of flexible work from home arrangements poses a number of operational risks that could adversely affect the Company’s business, financial condition and results of operations.

As a result of the COVID-19 pandemic, in March 2020, the Company transitioned to a remote working environment, with a peak of 85% of employees working remotely. While the Company has since brought employees back to the office, it has adopted more flexible work arrangements that permit some employees to work from home full or part time. Having employees conduct their daily work in the Company’s offices helps to ensure a level of productivity and operational security that may not be achieved when working remotely for an extended period. Remote work arrangements could strain the Company’s technology resources and introduce operational risks, including heightened cybersecurity risk, as remote working environments can be less secure. Over time, remote work arrangements may decrease the ability to maintain the Company’s culture, which is integral to the Company’s success. Additionally, a remote working environment may impede the Company’s ability to undertake new business projects and foster a creative environment. As remote work arrangements become more flexible and commonplace, the Company’s ability to compete for qualified employees could be challenged. The prevalence of remote work arrangements will expand competition among employers and may put the Company at a disadvantage if it is unable or unwilling to offer the same level of flexibility. Failure to attract and retain the desired workforce could have a negative effect on the Company’s business, financial condition and results of operations.

Risks Related to the Company’s Financial Statements

Changes in accounting standards or interpretation of new or existing standards may affect how the Company reports its financial condition and results of operations.

From time to time the Financial Accounting Standards Board (“FASB”) and the SEC change accounting regulations and reporting standards that govern the preparation of the Company’s financial statements. In addition, the FASB, SEC, bank regulators and the outside independent auditors may revise their previous interpretations regarding existing accounting regulations and the application of these accounting standards. These changes can be difficult to predict and can materially impact how to record and report the Company’s financial condition and results of operations. In some cases, there could be a requirement to apply a new or revised accounting standard retroactively, resulting in the restatement of prior period financial statements.

The Current Expected Credit Loss accounting standard could require the Company to increase its allowance for credit losses and may have a material adverse effect on its financial condition and results of operations.

Accounting Standard Update ("ASU") No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments became effective for the Company on January 1, 2020. This standard requires earlier recognition of expected credit losses on loans and certain other instruments, compared to the previously applied incurred loss model. CECL requires advanced modeling techniques, heavy reliance on assumptions, and dependence on historical data that may not accurately forecast losses. CECL can result in greater volatility in the level of the allowance for credit losses, depending on various factors and assumptions applied in the model, such as the forecasted economic conditions in the foreseeable future and loan payment behaviors. Any increase in the allowance for credit losses, or expenses incurred to determine the appropriate level of the allowance for credit losses, can have an adverse effect on the Company’s financial condition and results of operations.

Impairment in the carrying value of goodwill and other intangible assets could negatively impact the Company’s financial condition and results of operations.

At December 31, 2021, goodwill and other intangible assets totaled $396.1 million. Goodwill represents the excess of purchase price paid over the fair value of the net assets acquired in a business combination. The estimated fair values of the acquired assets and

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assumed liabilities may be subject to refinement as additional information relative to closing date fair values becomes available and may result in adjustments to goodwill within the first 12 months following the closing date of the acquisition. Goodwill and other intangible assets are reviewed for impairment at least annually or more frequently if events or changes in circumstances indicate that the carrying value may not be recoverable. A significant decline in expected future cash flows, a material change in interest rates, a significant adverse change in the business climate, slower growth rates or a significant or sustained decline in the price of the Company’s common stock may necessitate taking charges in the future related to the impairment of goodwill and other intangible assets. The amount of any impairment charge could be significant and could have a material adverse impact on the Company’s financial condition and results of operations.

The Company’s accounting estimates and risk management processes rely on analytical and forecasting models.

The processes that the Company uses to estimate its allowance for credit losses and to measure the fair value of financial instruments, as well as the processes used to estimate the effects of changing interest rates and other market measures on its financial condition and results of operations, depend upon the use of analytical and forecasting models. These models reflect assumptions that may not be accurate, particularly in times of market stress or other unforeseen circumstances. Even if these assumptions are adequate, the models may prove to be inadequate or inaccurate because of other flaws in their design or their implementation. If the models that the Company uses for interest rate risk and asset-liability management are inadequate, the Company may incur increased or unexpected losses upon changes in market interest rates or other market measures. If the models that the Company uses for determining its allowance for expected credit losses are inadequate, the allowance for credit losses may not be sufficient to support future charge-offs. If the models that the Company uses to measure the fair value of financial instruments are inadequate, the fair value of such financial instruments may fluctuate unexpectedly or may not accurately reflect what the Company could realize upon sale or settlement of such financial instruments. Any such failure in the Company’s analytical or forecasting models could have a material adverse effect on its business, financial condition and results of operations.

Regulatory Risks

The Company operates in a highly regulated industry, and compliance with, or changes to, the laws and regulations that govern its operations may adversely affect the Company.

The banking industry is heavily regulated. Banking regulations are primarily intended to protect the federal deposit insurance funds and depositors, not shareholders. Sandy Spring Bank is subject to regulation and supervision by the Board of Governors of the Federal Reserve System and by Maryland banking authorities. Sandy Spring Bancorp is subject to regulation and supervision by the Board of Governors of the Federal Reserve System. Federal and state laws and regulations govern numerous matters affecting the Company and the Bank, including changes in the ownership or control of banks and bank holding companies, maintenance of adequate capital and sound financial condition, permissible types, amounts and terms of loans and investments, permissible non-banking activities, the level of reserves against deposits and restrictions on dividend payments. These and other restrictions limit the manner in which the Company may conduct business and obtain financing. The laws, rules, regulations, and supervisory guidance and policies applicable to the Company and the Bank are subject to regular modification and change. Such changes may, among other things, increase the cost of doing business, limit the types of financial services and products the Company may offer, or affect the competitive balance between banks and other financial institutions. Failure to comply with laws, regulations, or policies could result in sanctions by regulatory agencies, civil money penalties, and/or reputational damage, which could have a material adverse effect on the Company’s business, financial condition, or results of operations. The burdens imposed by federal and state regulations put banks at a competitive disadvantage compared to less regulated competitors such as finance companies, mortgage banking companies, and leasing companies.

The Company will become subject to reduced interchange income in 2022.

Debit card interchange fee restrictions set forth in Section 1075 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which is known as the Durbin Amendment, as implemented by regulations of the Federal Reserve, cap the maximum debit interchange fee that a debit card issuer may receive per transaction at the sum of $0.21 plus five basis points. A debit card issuer that adopts certain fraud prevention procedures may charge an additional $0.01 per transaction. Debit card issuers with total consolidated assets of less than $10 billion are exempt from these interchange fee restrictions. The Company, which had total consolidated assets of greater than $10 billion at December 31, 2021, will become subject to the interchange restrictions of the Durbin Amendment beginning July 1, 2022. The reduction in interchange income could have an adverse effect on the Company’s business, financial condition and results of operations.

The Company’s ability to pay dividends is limited by law.

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The ability to pay dividends to shareholders largely depends on Sandy Spring Bancorp’s receipt of dividends from Sandy Spring Bank. The amount of dividends that Sandy Spring Bank may pay to Sandy Spring Bancorp is limited by federal laws and regulations. The ability of Sandy Spring Bank to pay dividends is also subject to its profitability, financial condition and cash flow requirements. There is no assurance that Sandy Spring Bank will be able to pay dividends to Sandy Spring Bancorp in the future. In addition, as a bank holding company, the Company’s ability to declare and pay dividends is dependent on federal regulatory considerations, including limits on dividends should the Company not maintain the required capital conservation buffer and guidelines of the Federal Reserve regarding capital adequacy and dividends. It is the policy of the Federal Reserve that bank holding companies should generally pay dividends on common stock only out of earnings, and only if prospective earnings retention is consistent with the organization’s expected future needs, asset quality and financial condition. The Company may limit the payment of dividends, even when the legal ability to pay them exists, in order to retain earnings for other uses.

Federal banking agencies periodically conduct examinations of the Company’s business, including compliance with laws and regulations; the failure to comply with any supervisory actions to which the Company is or becomes subject as a result of such examinations could adversely affect the Company.

As part of the bank regulatory process, the Federal Reserve and the Maryland banking authorities periodically conduct comprehensive examinations of the Company’s business, including compliance with laws and regulations. If, as a result of an examination, either of these banking agencies were to determine that the financial condition, capital resources, asset quality, earnings prospects, management, liquidity, asset sensitivity, risk management or other aspects of any of the Company’s operations had become unsatisfactory, or that the Company, the Bank or their respective management were in violation of any law or regulation, it may take a number of different remedial actions as it deems appropriate. The Federal Reserve may enjoin “unsafe or unsound” practices or violations of law, require affirmative actions to correct any conditions resulting from any violation or practice, issue an administrative order that can be judicially enforced, direct an increase in the Company’s capital levels, restrict the Company’s growth, assess civil monetary penalties against the Company, the Bank or their respective officers or directors, and remove officers and directors. The FDIC also has authority to review the Bank’s financial condition, and, if the FDIC were to conclude that the Bank or its directors were engaged in unsafe or unsound practices, that the Bank was in an unsafe or unsound condition to continue operations, or that the Bank or the directors violated applicable law, the FDIC could move to terminate the Bank’s deposit insurance. If the Company becomes subject to such regulatory actions, its business, financial condition, earnings and reputation could be adversely affected.

The Company is subject to numerous laws designed to protect consumers, including the Community Reinvestment Act ("CRA") fair lending laws, and failure to comply with these laws could lead to a wide variety of sanctions.

The CRA requires the Federal Reserve to assess the Bank’s performance in meeting the credit needs of the communities it serves, including low- and moderate-income neighborhoods. If the Federal Reserve determines that the Bank needs to improve its performance or is in substantial non-compliance with CRA requirements, various adverse regulatory consequences may ensue. In addition, the Equal Credit Opportunity Act, the Fair Housing Act and other fair lending laws and regulations impose nondiscriminatory lending requirements on financial institutions. The CFPB, the U.S. Department of Justice and other federal agencies are responsible for enforcing these laws and regulations. The CFPB was created under the Dodd-Frank Act to centralize responsibility for consumer financial protection with broad rule-making authority to administer and carry out the purposes and objectives of federal consumer financial laws with respect to all financial institutions that offer financial products and services to consumers. The CFPB is also authorized to prescribe rules applicable to any covered person or service provider, identifying and prohibiting acts or practices that are “unfair, deceptive, or abusive” in connection with any transaction with a consumer for a consumer financial product or service, or the offering of a consumer financial product or service. The ongoing broad rule-making powers of the CFPB have potential to have a significant impact on the operations of financial institutions offering consumer financial products or services.

A successful regulatory challenge to an institution’s performance under the CRA, fair lending laws or regulations, or consumer lending laws and regulations could result in a wide variety of sanctions, including damages and civil money penalties, injunctive relief, restrictions on mergers and acquisitions activity, restrictions on expansion, and restrictions on entering new business lines. Private parties may also have the ability to challenge an institution’s performance under fair lending laws in private class action litigation. Such actions could have a material adverse effect on the Company’s business, financial condition and results of operations.

The Company faces a risk of noncompliance and enforcement action with the Bank Secrecy Act and other anti-money laundering statutes and regulations.

The federal Bank Secrecy Act, PATRIOT Act and other laws and regulations require financial institutions, among other duties, to institute and maintain effective anti-money laundering programs and file suspicious activity and currency transaction reports as appropriate. The federal Financial Crimes Enforcement Network, established by the U.S. Treasury Department to administer the Bank

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Secrecy Act, is authorized to impose significant civil money penalties for violations of those requirements and engages in coordinated enforcement efforts with the individual federal banking regulators, as well as the U.S. Department of Justice, Drug Enforcement Administration and Internal Revenue Service. Federal and state bank regulators also focus on compliance with Bank Secrecy Act and anti-money laundering regulations. If the Company’s policies, procedures and systems are deemed to be deficient or the policies, procedures and systems of the financial institutions that the Company may acquire in the future are deficient, the Company would be subject to liability, including fines and regulatory actions such as restrictions on its ability to pay dividends and the necessity to obtain regulatory approvals to proceed with certain aspects of its business plan, including its acquisition plans, which would negatively impact the Company’s business, financial condition and results of operations. Failure to maintain and implement adequate programs to combat money laundering and terrorist financing could also have serious reputational consequences for the Company.

General Risk Factors

Changes in U.S. or regional economic conditions could have an adverse effect on the Company’s business, financial condition and results of operations.

The Company’s business activities and earnings are affected by general business conditions in the United States and in the Company’s local market area. These conditions include short-term and long-term interest rates, inflation, unemployment levels, consumer confidence and spending, fluctuations in both debt and equity capital markets, and the strength of the economy in the United States generally and, in particular, the Company’s market area. A favorable business environment is generally characterized by, among other factors, economic growth, efficient capital markets, low inflation, low unemployment, high business and investor confidence, and strong business earnings. Unfavorable or uncertain economic and market conditions can be caused by declines in economic growth, business activity or investor or business confidence; limitations on the availability or increases in the cost of credit and capital; increases in inflation or interest rates; high unemployment; natural disasters; or a combination of these or other factors. Economic pressure on consumers and uncertainty regarding continuing economic improvement may result in changes in consumer and business spending, borrowing and savings habits. Elevated levels of unemployment, declines in the values of real estate, extended federal government shutdowns, or other events that affect household and/or corporate incomes could impair the ability of the Company’s borrowers to repay their loans in accordance with their terms and reduce demand for banking products and services.

Increasing scrutiny and evolving expectations from customers, regulators, investors, and other stakeholders with respect to our environmental, social and governance practices may impose additional costs on us or expose us to new or additional risks.

Companies are facing increasing scrutiny from customers, regulators, investors, and other stakeholders related to their environmental, social and governance (“ESG”) practices and disclosure. Investor advocacy groups, investment funds and influential investors are also increasingly focused on these practices, especially as they relate to the environment, health and safety, diversity, labor conditions and human rights. Increased ESG related compliance costs could result in increases to our overall operational costs. Failure to adapt to or comply with regulatory requirements or investor or stakeholder expectations and standards could negatively impact our reputation, ability to do business with certain partners, and our stock price. New government regulations could also result in new or more stringent forms of ESG oversight and expanding mandatory and voluntary reporting, diligence, and disclosure. Additionally, concerns over the long-term impacts of climate change have led and will continue to lead to governmental efforts around the world to mitigate those impacts. Consumers and businesses also may change their behavior on their own as a result of these concerns. The Company and its customers will need to respond to new laws and regulations as well as consumer and business preferences resulting from climate change concerns. The Company and its customers may face cost increases, asset value reductions, operating process changes, among other impacts. The impact on the Company’s customers will likely vary depending on their specific attributes, including reliance on or role in carbon intensive activities. In addition, the Company could face reductions in creditworthiness on the part of some customers or in the value of assets securing loans. The Company’s efforts to take these risks into account in making lending and other decisions may not be effective in protecting the Company from the negative impact of new laws and regulations or changes in consumer or business behavior.

The market price for the Company’s stock may be volatile.

The market price for the Company’s common stock has fluctuated, ranging between $33.23 and $51.62 per share during the 12 months ended December 31, 2021. The overall market and the price of the Company’s common stock may experience volatility. There may be a significant impact on the market price for the common stock due to, among other things:

•past and future dividend practice;

•financial condition, performance, creditworthiness and prospects;

•quarterly variations in operating results or the quality of the Company’s assets;

•operating results that vary from the expectations of management, securities analysts and investors;

•changes in expectations as to the future financial performance;

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•announcements of innovations, new products, strategic developments, significant contracts, acquisitions and other material events by the Company or its competitors;

•the operating and securities price performance of other companies that investors believe are comparable to the Company;

•future sales of the Company’s equity or equity-related securities;

•the credit, mortgage and housing markets, the markets for securities relating to mortgages or housing, and developments with respect to financial institutions generally; and

•changes in global financial markets and economies and general market conditions, such as interest or foreign exchange rates, stock, commodity or real estate valuations or volatility or other geopolitical, regulatory or judicial events.

There can be no assurance that a more active or consistent trading market in the Company’s common stock will develop. As a result, relatively small trades could have a significant impact on the price of the Company’s common stock.

Future sales of the Company’s common stock or other securities may dilute the value and adversely affect the market price of the Company’s common stock.

In many situations, the Company’s board of directors has the authority, without any vote of the Company’s shareholders, to issue shares of authorized but unissued stock, including shares authorized and unissued under the Company’s equity incentive plans. In the future, additional securities may be issued, through public or private offerings, in order to raise additional capital. Any such issuance would dilute the percentage of ownership interest of existing shareholders and may dilute the per share book value of the Company’s common stock. In addition, option holders may exercise their options at a time when the Company would otherwise be able to obtain additional equity capital on more favorable terms.

Changes in tax laws and regulations and differences in interpretation of tax laws and regulations may negatively impact the Company’s financial performance.

From time to time, local, state or federal tax authorities change tax laws and regulations, which may result in a decrease or increase to our net deferred tax asset. Local, state or federal tax authorities may interpret laws and regulations differently than does the Company and challenge tax positions that the Company has taken on its tax returns. This may result in differences in the treatment of revenues, deductions, credits and/or differences in the timing of these items. The differences in treatment may result in payment of additional taxes, interest, penalties or litigation costs that could have a material adverse effect on the Company’s operating results.

Negative public opinion regarding the Company or failure to maintain the Company’s reputation in the communities it serves could adversely affect the Company’s business and prevent the Company from growing its business.

The Company’s reputation within the communities it serves is critical to its success. The Company believes it has set itself apart from its competitors by building strong personal and professional relationships with its customers and being an active member of the communities it serves. As such, the Company strives to enhance its reputation by recruiting, hiring and retaining employees who share the Company’s core values of being an integral part of the communities it serves and delivering superior service to its customers. If the Company’s reputation is negatively affected by the actions of its employees or otherwise, the Company may be less successful in attracting new talent and customers or may lose existing customers, and its business, financial condition and earnings could be adversely affected. Further, negative public opinion can expose the Company to litigation and regulatory action and delay and impede the Company’s efforts to implement its growth strategy, which could further adversely affect its business, financial condition and results of operations.

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Item 1B. UNRESOLVED STAFF COMMENTS

None.

Item 2. PROPERTIES

The Company’s headquarters is located in Olney, Maryland. As of December 31, 2021, The Company owns 12 of its full-service community banking centers. The remaining banking locations, in addition to the offices of SSIC, West Financial and RPJ are leased. See Note 8 – Leases to the Notes to the Consolidated Financial Statements for additional information.

Item 3. LEGAL PROCEEDINGS

In the normal course of business, the Company becomes involved in litigation arising from the banking, financial, and other activities it conducts. Management, after consultation with legal counsel, does not anticipate that the ultimate liability, if any, arising out of currently pending legal proceedings will have a material effect on the Company's financial condition, operating results or liquidity.

Item 4. MINE SAFETY DISCLOSURES

Not applicable.

PART II

Item 5. MARKET FOR THE REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

Stock Listing

Common shares of Sandy Spring Bancorp, Inc. are listed on the NASDAQ Global Select Market under the symbol “SASR”. At January 31, 2022 there were approximately 2,600 holders of record of the Company’s common stock.

Transfer Agent and Registrar

Computershare, P.O. Box 505005, Louisville, KY 40233-5005

Share Transactions with Employees

Shares issued under the employee stock purchase plan, which was authorized in 2011, and amended and restated in 2020, totaled 60,018 in 2021 and 65,337 in 2020, while issuances pursuant to exercises of stock options and vesting of restricted shares were 352,135 and 72,449 in the respective years. There were no shares issued under the director stock purchase plan in 2020. The director stock purchase plan expired on December 31, 2020 and was not re-authorized.

Issuer Purchases of Equity Securities

In December 2020, the Company's board of directors authorized a stock repurchase plan that permitted the repurchase of up to 2,350,000 shares of common stock. The Company repurchased all 2,350,000 authorized shares of its common stock at an average price of $45.65 per share during 2021. The following table sets forth information regarding repurchases of shares of the Company’s common stock during the fourth quarter of 2021.

Period	Total number of shares purchased	Average price paid per share		Total number of shares purchased as a part of publicly announced plans or programs	Maximum number that may yet be purchased under the plans or programs
October 1, 2021 through October 31, 2021	505,124	$	47.60	505,124	583,048
November 1, 2021 through November 30, 2021	525,859	$	49.70	525,859	57,189
December 1, 2021 through December 31, 2021	57,189	$	48.42	57,189	—

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Total Return Comparison

The following graph and table show the cumulative total return on the common stock of the Company over the last five years, compared with the cumulative total return of a broad stock market index (the Standard and Poor’s 500 Index or “S&P 500”), and a narrower index of Mid-Atlantic bank holding company peers with assets of $6.5 billion to $30 billion. The cumulative total return on the stock or the index equals the total increase in value since December 31, 2016, assuming reinvestment of all dividends paid into the stock or the index. The graph and table were prepared assuming that $100 was invested on December 31, 2016, in the common stock and the securities included in the indexes.

Sandy Spring Bancorp, Inc.

	Period Ending
Index	12/31/16	12/31/17	12/31/18	12/31/19	12/31/20	12/31/21
Sandy Spring Bancorp, Inc.	100.00	100.07	82.74	103.48	92.05	141.59
S&P 500 Index	100.00	121.83	116.49	153.17	181.35	233.41
Peer Group	100.00	95.46	82.94	98.54	82.90	113.98

The Peer Group Index includes seventeen publicly traded bank holding companies, other than the Company, headquartered in the Mid-Atlantic region and with assets of $6.5 billion to $30 billion. The companies included in this index are: Atlantic Union Bankshares Corporation (VA), ConnectOne Bancorp, Inc. (NJ); Customers Bancorp, Inc. (PA); Eagle Bancorp, Inc. (MD); First Bancorp (NC); First Commonwealth Financial Corporation (PA); First Financial Bancorp (OH); Fulton Financial Bancorp (PA); Investors Bancorp,

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Inc. (NJ); Lakeland Bancorp, Inc. (NJ); Northwest Bankshares, Inc. (PA); OceanFirst Financial Corp. (NJ); Park National Corporation (OH); Peoples Bancorp, Inc. (OH); Premier Financial Corp. (OH); S&T Bancorp, Inc. (PA); TowneBank (VA): United Bankshares, Inc. (WV); Univest Financial Corporation (PA) and WesBanco, Inc. (WV). Returns are weighted according to the issuer’s stock market capitalization at the beginning of each year shown. The Company modified the criteria used to form the Peer Group Index to reflect the Company’s asset growth.

Equity Compensation Plans

The following table presents the number of shares available for issuance under the Company’s equity compensation plans at December 31, 2021.

Plan category	Number of securities to be issued upon exercise of outstanding options, warrants and rights	Weighted average exercise price of outstanding options, warrants and rights	Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in the first column)
Equity compensation plans approved by security holders	159,741	$17.18	794,433
Equity compensation plans not approved by security holders	—	—	—
Total	159,741	$17.18	794,433

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Item 6. [RESERVED]

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Item 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Overview

Net income for Sandy Spring Bancorp, Inc. and subsidiaries (the “Company”) for the year ended December 31, 2021 was $235.1 million ($4.98 per diluted common share) compared to $97.0 million ($2.18 per diluted common share) for the year ended December 31, 2020, representing a 142% increase in net income and a 129% increase in earnings per diluted common share. The results during 2021 were significantly driven by the effect of credits to the provision for credit losses compared to the prior year's results, which included the impact of the adoption of the expected credit loss accounting standard ("CECL standard") and merger and acquisition expense. Net interest income grew 17% as a result of the combined growth in the commercial loan portfolio and the reduction in interest expense incurred on time and money market deposits, in addition to the significant reduction in borrowings. The Company's participation in the Paycheck Protection Program ("PPP" or "PPP program") contributed to the year-over-year interest income growth associated with the commercial loan portfolio. The significant credit to the provision for credit losses during the current year was primarily the result of continued improvement of economic forecasts during the year. Non-interest income moderated in the current year as the decline in income from mortgage banking activities was offset by increases in other areas of non-interest income. Non-interest expense, exclusive of merger costs and the losses from early redemption of Federal Home Loan Bank of Atlanta ("FHLB") borrowings, increased 12% predominantly as the result of increased compensation costs and professional fees.

Current 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, were $211.9 million ($4.52 per diluted common share), compared to $189.4 million ($4.29 per diluted common share) for the year ended December 31, 2020.

These results reflect the following:

•Total assets at December 31, 2021, declined 2% to $12.6 billion, compared to $12.8 billion at December 31, 2020. During the year, excess liquidity, the product of deposit growth and PPP loan forgiveness, was used to reduce borrowings as well as fund the loan growth that occurred late in 2021.

•Total loans declined 4%, driven by a reduction of $874.4 million in PPP loans. Excluding the impact of the PPP forgiveness, total commercial loans grew by $681.1 million during the year, while residential mortgage and consumer loans declined a combined $255.1 million due to run-off. The second half of 2021 saw $2.1 billion in gross loan production, of which $1.5 billion was funded, that more than offset $873.8 million in commercial loan run-off. During the fourth quarter of the current year, funded commercial loan production increased to $937.3 million or 115% compared to $435.2 million for the same quarter of the prior year.

•Year-over-year deposits increased 6%, driven by 14% growth in noninterest-bearing deposits and 2% growth in interest-bearing deposits, reflecting the impact of the PPP program and the growth in transaction relationships, while time deposits declined $366.8 million. The loan-to-deposit ratio declined to 94% at the end of 2021 compared to 104% at the end of 2020.

•The net interest margin was 3.56% in 2021, compared to 3.35% in 2020. Excluding the amortization of fair value marks, the net interest margin for the current year would have been 3.52% compared to 3.23% for the prior year.

•The provision for credit losses was a credit of $45.6 million for 2021, compared to a charge of $85.7 million for 2020. The current year's credit for the provision for credit losses reflects the impact of the continued improvement in forecasted economic metrics, notably the rate of unemployment, anticipated business bankruptcies and the housing price index.

•Non-interest income decreased 1% to $102.1 million for 2021, compared to $102.7 million for 2020, driven by a decrease in income from mortgage banking activities which was partially offset by increases in wealth management income, service charge income, bank card fees and other non-interest income.

•Non-interest expense increased to $260.5 million for 2021, compared to $255.8 million for the prior year. The prior year included $25.2 million in merger and acquisition expense. The current year's growth included $9.1 million in prepayment penalties from the liquidation of FHLB advances, compared to $5.9 million for 2020. Excluding merger and acquisition expense and the prepayment penalties, non-interest expense rose 12%, driven primarily by increases in compensation costs and professional fees.

•The GAAP efficiency ratio was 49.47% in 2021 compared to 54.90% for the prior year. This improvement in the efficiency ratio is the result of the 13% growth in revenues exceeding the 2% growth in non-interest expense during the current year. The non-GAAP efficiency ratio was 46.17% for 2021, compared to 46.53% for 2020 as a result of the growth in non-GAAP revenue outpacing the growth in non-GAAP non-interest expense.

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The Company’s non-performing loans represented 0.49% of total loans at December 31, 2021, compared to 1.11% at December 31, 2020. The ratio of net charge-offs to average loans was 0.11% for 2021, compared to 0.01% for the prior year.

Customer funding sources at year-end 2021, which include deposits plus other short-term borrowings from core customers, increased 6% compared to year end 2020. Deposit growth was 6% during the past twelve months, as noninterest-bearing deposits experienced growth of 14% and interest-bearing deposits grew 2% reflecting the impact of the PPP program and the growth in transaction relationships, while time deposits declined $366.8 million. Liquidity continues to remain strong due to the availability of borrowing lines with the FHLB and the Federal Reserve Bank and the size and composition of the investment portfolio.

Stockholders’ equity at December 31, 2021 increased 3% to $1.5 billion, compared to December 31, 2020. Tangible common equity increased to 9.21% of tangible assets at December 31, 2021, compared to 8.61% at December 31, 2020 as a result of 2021 earnings, net of the $107.3 million repurchase of common shares, and the decrease in tangible assets during the past year. At December 31, 2021, the Bank remained above all “well-capitalized” regulatory requirement levels. Book value per common share was $33.68 at December 31, 2021 compared to $31.24 at December 31, 2020. Tangible book value per common share was $24.90 at December 31, 2021, compared to $22.68 at December 31, 2020.

Net income for the year ended December 31, 2021 was $235.1 million, compared to $97.0 million for the year ended December 31, 2020. The results from 2021 included the positive effect from the credits to the provision for credit losses as forecasted economic metrics continued to improve throughout the year. The fourth quarter of 2021 experienced significant growth in the commercial loan portfolio and resulted in a provision being recorded during the quarter compared to a credit to the provision for the previous three quarters of 2021.

Net interest income increased 17% to $424.5 million compared to $363.2 million in 2020. The income generated by the PPP program, net of its associated funding costs, contributed a net of $25.7 million to the growth in net interest income year-over-year. The net interest margin improved to 3.56% for the ended December 31, 2021, compared to 3.35% for the prior year. Excluding the net $4.1 million impact of the amortization of the fair value marks derived from acquisitions, the net interest margin for the current year would have been 3.52% compared to 3.23% for the prior year.

Non-interest income decreased 1% to $102.1 million for 2021, compared to $102.7 million for 2020. During the current year, income from mortgage banking activities decreased as mortgage loan originations declined in response to the rise in residential lending rates. Wealth management income increased $6.3 million, driven by the growth in the assets under management and the client base. In addition, service charge income, bankcard fees, loan prepayment fees and other non-interest income also experienced double digit growth from the prior year.

Non-interest expense increased 2% to $260.5 million for 2021, compared to $255.8 million for 2020. The current year's growth included $9.1 million in prepayment penalties from the early redemption of FHLB advances compared to $5.9 million for 2020. The prior year also included $25.2 million in merger and acquisition expense. Excluding the impact of these items results in a year-over-year growth rate in non-interest expense of 12%. This growth was driven by a combination of operational and compensation costs associated with the 2020 acquisitions, staffing increases, and incentive compensation associated with volume-based and performance benchmarks, in addition to increases in professional fees and services associated with certain strategic initiatives, intangible asset amortization, marketing and outside data services cost.

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Selected Financial Data

Consolidated Summary of Financial Results (Dollars in thousands, except per share data)	2021			2020			2019			2018			2017
Results of Operations:
Tax-equivalent interest income	$	453,987		$	427,688		$	352,615		$	328,797		$	202,258
Interest expense	25,766			60,401			82,561			63,637			26,031
Tax-equivalent net interest income	428,221			367,287			270,054			265,160			176,227
Tax-equivalent adjustment	3,703			4,128			4,746			4,715			7,459
Provision/ (credit) for credit losses	(45,556)			85,669			4,684			9,023			2,977
Net interest income after provision for credit losses	470,074			277,490			260,624			251,422			165,791
Non-interest income	102,055			102,716			71,322			61,049			51,243
Non-interest expense	260,470			255,782			179,085			179,783			129,099
Income before taxes	311,659			124,424			152,681			132,688			87,935
Income tax expense	76,552			27,471			36,428			31,824			34,726
Net income	235,107			96,953			116,433			100,864			53,209
Net income attributable to common shareholders	$	233,599		$	96,170		$	115,671		$	100,285		$	52,748
Per Share Data:
Net income - basic per common share	$	5.00		$	2.19		$	3.25		$	2.82		$	2.20
Net income - diluted per common share	$	4.98		$	2.18		$	3.25		$	2.82		$	2.20
Dividends declared per share	$	1.28		$	1.20		$	1.18		$	1.10		$	1.04
Book value per common share	$	33.68		$	31.24		$	32.40		$	30.06		$	23.50
Tangible book value per common share - Non-GAAP (1)	$	24.90		$	22.68		$	22.25		$	20.01		$	19.90
Dividends declared to diluted net income per common share	25.70		%	55.05		%	36.31		%	39.01		%	47.27		%
Period End Balances:
Assets	$	12,590,726		$	12,798,429		$	8,629,002		$	8,243,272		$	5,446,675
Investment securities	1,507,062			1,413,781			1,125,136			1,010,724			775,025
Loans	9,967,091			10,400,509			6,705,232			6,571,634			4,314,248
Deposits	10,624,731			10,033,069			6,440,319			5,914,880			3,963,662
Borrowings	313,798			1,149,320			936,788			1,213,465			885,192
Stockholders’ equity	1,519,679			1,469,955			1,132,974			1,067,903			563,816
Average Balances:
Assets	$	12,818,202		$	11,775,096		$	8,367,139		$	7,965,514		$	5,239,920
Investment securities	1,457,483			1,350,483			979,757			1,018,016			813,601
Loans	10,034,866			9,317,493			6,569,069			6,225,498			4,097,988
Deposits	10,663,823			8,982,623			6,266,757			5,689,601			3,849,186
Borrowings	478,398			1,279,481			861,926			1,190,930			798,733
Stockholders’ equity	1,518,607			1,339,491			1,108,310			1,024,795			550,926
Performance Ratios:
Return on average assets	1.83		%	0.82		%	1.39		%	1.27		%	1.02		%
Return on average common equity	15.48			7.24			10.51			9.84			9.66
Return on average tangible common equity - Non-GAAP (1)	21.01			10.25			15.33			14.66			11.35
Yield on average interest-earning assets	3.77			3.90			4.58			4.47			4.08
Rate on average interest-bearing liabilities	0.35			0.82			1.56			1.24			0.77
Net interest spread	3.42			3.08			3.02			3.23			3.31
Net interest margin	3.56			3.35			3.51			3.60			3.55
Efficiency ratio – GAAP (2)	49.47			54.90			53.20			55.92			58.68
Efficiency ratio – Non-GAAP (2)	46.17			46.53			51.52			50.87			54.59
Capital Ratios:
Tier 1 leverage	9.26		%	8.92		%	9.70		%	9.50		%	9.24		%
Common equity tier 1 capital to risk-weighted assets	11.91			10.58			11.06			10.90			10.84
Tier 1 capital to risk-weighted assets	11.91			10.58			11.21			11.06			10.84
Total regulatory capital to risk-weighted assets	14.59			13.93			14.85			12.26			11.85
Tangible common equity to tangible assets - Non-GAAP (1)	9.21			8.61			9.40			9.02			8.91
Average equity to average assets	11.85			11.38			13.25			12.87			10.51
Credit Quality Ratios:
Allowance for credit losses to total loans	1.10		%	1.59		%	0.84		%	0.81		%	1.05		%
Non-performing loans to total loans	0.49			1.11			0.62			0.55			0.68
Non-performing assets to total assets	0.40			0.91			0.50			0.46			0.58
Net charge-offs to average loans	0.11			0.01			0.03			0.01			0.04

(1)See the discussion of tangible common equity in the section of Management’s Discussion and Analysis of Financial Condition and Results of Operations entitled “Tangible Common Equity.”

(2)See the discussion of the efficiency ratio in the section of Management’s Discussion and Analysis of Financial Condition and Results of Operations entitled “Non-GAAP Financial Measures.”

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Critical Accounting Policies

The Company’s consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and follow general practices within the banking industry. Application of these principles requires management to make estimates, assumptions, and judgments that affect the amounts reported in the financial statements and accompanying notes. These estimates, assumptions, and judgments are based on information available as of the date of the financial statements; accordingly, as this information changes, the financial statements may reflect different estimates, assumptions, and judgments. Certain policies inherently rely more extensively on the use of estimates, assumptions, and judgments and as such may have a greater possibility of producing results that could be materially different than originally reported. Estimates, assumptions, and judgments are necessary for assets and liabilities that are required to be recorded at fair value. A decline in the value of assets required to be recorded at fair value may warrant an impairment write-down or valuation allowance to be established. Carrying assets and liabilities at fair value inherently results in greater financial statement volatility. The fair values and the information used to record valuation adjustments for certain assets and liabilities are based either on quoted market prices or are provided by other third-party sources, when readily available.

Management believes the following accounting policies are the most critical to aid in fully understanding and evaluating the reported financial results:

•Allowance for credit losses;

•Goodwill and other intangible asset impairment;

•Accounting for income taxes;

Allowance for Credit Losses

The allowance for credit losses (“ACL”) represents management's judgement of an estimated amount of lifetime expected losses that may be incurred on outstanding loans at the balance sheet date. This estimate is based on the risk characteristics of each segment of the loan portfolio, historical losses and defaults, an expectation of supportable future economic conditions and payment performance of the Company’s borrowers. The Company’s methodology for estimating the allowance includes a collective quantified reserve, a collective qualitative reserve and individual allowances on specific credits. Loans are pooled into segments based on similar characteristics of borrowers, collateral types, types of associated industries and business purposes of the loans. Accordingly, the determination of the appropriateness of the allowance is complex and applies significant and highly subjective estimates. The use of significant judgement and the estimates of expected lifetime losses in the loan portfolio may vary significantly from actual amounts incurred. While management utilizes available applicable data to recognize expected losses, based on changes in the behavior of the portfolio in response to interest rates and economic conditions, the composition of the loan portfolio and the financial condition of the respective borrowers, future additions to the allowance may be necessary. The reasonableness of the allowance and the underlying methodology applied to determine the estimate is reviewed periodically by the Risk Committee of the board of directors and formally approved quarterly by the same committee of the board.

Further details regarding the methodologies applied to estimate the various components of the allowance are provided in Note 1 – Significant Accounting Policies in the Notes to the Consolidated Financial Statements. Information regarding the management of credit risk and changes in the allowance for credit losses during the period is provided in those sections of Management’s Discussion and Analysis beginning on page 55.

Goodwill and Other Intangible Asset Impairment

Current accounting guidance provides the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. The Company assesses qualitative factors on a quarterly basis. Based on the assessment of these qualitative factors, if it is determined that it is more likely than not that the fair value of a reporting unit is not less than the carrying value, then performing the impairment process is not necessary. However, if it is determined that it is more likely than not that the carrying value exceeds the fair value a quantified analysis is required to determine whether an impairment exists. Determining the fair value of a reporting unit requires the Company to use a degree of subjectivity. The Company has applied this accounting guidance with respect to its Community Banking, Investment Management and Insurance segments.

Annually, the Company performs an impairment test of goodwill as of October 1 of each year. During the year, any triggering event that occurs may affect goodwill and could require an impairment assessment. Based upon the lack of triggering events the Company concluded in its annual impairment test of goodwill and other intangible assets that no impairment has occurred on October 1 nor December 31.

38

Other intangible assets have finite lives and are reviewed for impairment annually. These assets are amortized over their estimated useful lives on a straight-line or sum-of-the-years basis over varying periods that initially did not exceed 15 years. Intangible assets are reviewed or analyzed periodically to determine if it appears that their value has diminished beyond the value in the financial statements. The review or analysis of the intangible assets did not indicate that any impairment has occurred during 2021.

Refer to Note 1 – Significant Accounting Policies in the Notes to the Consolidated Financial Statements for more details on the Company’s accounting policy for Goodwill and Other Intangible Assets.

Accounting for Income Taxes

Management exercises significant judgment in the evaluation of the amount and timing of the recognition of the resulting tax assets and liabilities. The judgments and estimates required for the evaluation are updated based upon changes in business factors and the tax laws. If actual results differ from the assumptions and other considerations used in estimating the amount and timing of tax recognized, there can be no assurance that additional expenses will not be required in future periods. The Company’s adherence to the required accounting guidance may result in volatility in quarterly and annual effective income tax rates due to the requirement that any change in judgment or measurement taken in a prior period be recognized as a discrete event in the period in which it occurs. Factors that could impact management’s judgment include changes in income, tax laws and regulations, and tax planning strategies. Assessment of uncertain tax positions requires careful consideration of the technical merits of a position based on management’s analysis of tax regulations and interpretations. Significant judgment may be involved in applying the applicable reporting and accounting requirements.

Refer to Note 1 – Significant Accounting Policies in the Notes to the Consolidated Financial Statements for more details on the Company’s accounting policy for Income Taxes.

Accounting Pronouncements Adopted During the Current Year

For further information regarding accounting pronouncements adopted during the current year, refer to Note 1 - Significant Accounting Policies in the Notes to the Consolidated Financial Statements.

Pending Accounting Pronouncements

Refer to Note 1 - Significant Accounting Policies in the Notes to the Consolidated Financial Statements for more details regarding pending accounting pronouncements.

Net Interest Income

The largest source of the Company’s operating revenue is net interest income, which is the difference between the interest earned on interest-earning assets and the interest paid on interest-bearing liabilities. For purposes of this discussion and analysis, the interest earned on tax-advantaged loans and tax-exempt investment securities has been adjusted to an amount comparable to interest subject to normal income taxes. The result is referred to as tax-equivalent interest income and tax-equivalent net interest income. The following discussion of net interest income should be considered in conjunction with the impact of the acquisition of Revere in the second quarter of 2020 and a review of the information provided in the table that provides yields and rates on average balances.

2021 vs. 2020

Net interest income for 2021 was $424.5 million, compared to $363.2 million for 2020, a 17% increase. This $61.4 million increase was driven by a 13% increase in interest income from the commercial loan portfolio growth and the 57% decrease in interest expense during the current year. During the year, average interest-earning assets grew 10% while interest-bearing liabilities remained stable, as the 14% increase in lower rate average interest-bearing deposits was offset by the 63% reduction in more expensive borrowings. Excess liquidity resulting from deposit growth and PPP loan forgiveness was used to reduce borrowings as well as fund loan growth. On a tax-equivalent basis, net interest income for 2021 was $428.2 million, compared to $367.3 million for 2020. The drivers of the positive effects on net interest income were partially mitigated by a decrease in interest income from the investment securities and mortgage and consumer loan portfolios. The PPP program, net of its funding cost, contributed $44.7 million to the growth in net interest income during the current year compared to $19.0 million in the prior year. An analysis of the net interest income performance is presented in the following tables.

39

For the current year, the net interest margin improved to 3.56%, compared to 3.35% for the prior year. Excluding the net impact of the $4.1 million in amortization of the fair value marks derived from acquisitions, the net interest margin for the current year would have been 3.52%. The net interest margin for 2020, excluding the amortization of fair value marks, would have been 3.23%.

2020 vs. 2019

Net interest income for 2020 was $363.2 million, compared to $265.3 million for 2019, a 37% increase. On a tax-equivalent basis, net interest income for 2020 was $367.3 million, compared to $270.1 million for 2019. The growth in net interest income during 2020 from 2019 primarily reflected the effects of the Revere Bank acquisition. This growth was tempered by the impact of the 68 basis point decrease in the yield on interest-earning assets, which grew 42% during the period, as this impact was partially offset by the positive effect of the 74 basis point decline in the rate paid on interest-bearing liabilities, which grew 39%. Overall, the net interest margin decreased to 3.35% for 2020 compared to 3.51% for 2019.

Excluding the $12.7 million net impact of the amortization of the fair value marks derived from acquisitions, the net interest margin for 2020 would have been 3.23%. The amortization of the fair value marks recognized during 2020 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 fair value marks, would have been 3.46%. For the year ended December 31, 2020, the income generated by the PPP program, net of its associated funding costs, was $19.0 million. For the year ended December 31, 2019, net interest income included $1.8 million in recovered interest income on acquired credit impaired loans.

40

Consolidated Average Balances, Yields and Rates

	Year Ended December 31,
	2021						2020						2019
(Dollars in thousands and tax-equivalent)	Average Balances		Interest (1)		Annualized Average Yield/Rate (2)		Average Balances		Interest (1)		Annualized Average Yield/Rate (2)		Average Balances		Interest (1)		Annualized Average Yield/Rate (2)
Assets
Commercial investor real estate loans	$	3,689,769	$	152,977	4.15	%	$	3,210,527	$	142,105	4.43	%	$	2,000,571	$	99,410	4.97	%
Commercial owner-occupied real estate loans	1,661,015		76,463		4.60		1,560,223		73,655		4.72		1,239,289		60,581		4.89
Commercial AD&C loans	1,110,420		44,460		4.00		906,414		40,262		4.44		677,536		39,241		5.79
Commercial business loans	1,952,537		94,391		4.83		1,781,197		69,633		3.91		772,052		41,300		5.35
Total commercial loans	8,413,741		368,291		4.38		7,458,361		325,655		4.37		4,689,448		240,532		5.13
Residential mortgage loans	979,754		33,874		3.46		1,168,668		43,001		3.68		1,214,625		46,438		3.82
Residential construction loans	178,171		6,127		3.44		165,567		6,683		4.04		168,797		7,232		4.28
Consumer loans	463,200		16,689		3.60		524,897		20,356		3.88		496,199		24,391		4.92
Total residential and consumer loans	1,621,125		56,690		3.50		1,859,132		70,040		3.77		1,879,621		78,061		4.15
Total loans (3)	10,034,866		424,981		4.24		9,317,493		395,695		4.25		6,569,069		318,593		4.85
Loans held for sale	57,016		1,736		3.05		52,893		1,686		3.19		41,905		1,607		3.84
Taxable securities	1,017,268		16,118		1.58		1,106,315		22,482		2.03		768,521		22,873		2.98
Tax-advantaged securities	440,215		10,426		2.37		244,168		7,378		3.02		211,236		7,403		3.50
Total investment securities (4)	1,457,483		26,544		1.82		1,350,483		29,860		2.21		979,757		30,276		3.09
Interest-bearing deposits with banks	500,400		725		0.14		246,155		446		0.18		108,534		2,129		1.96
Federal funds sold	570		1		0.12		403		1		0.28		572		10		1.76
Total interest-earning assets	12,050,335		453,987		3.77		10,967,427		427,688		3.90		7,699,837		352,615		4.58
Less: allowance for credit losses	(130,437)						(128,793)						(53,746)
Cash and due from banks	95,620						122,826						65,181
Premises and equipment, net	57,198						59,031						60,595
Other assets	745,486						754,605						595,272
Total assets	$	12,818,202					$	11,775,096					$	8,367,139
Liabilities and Stockholders' Equity
Interest-bearing demand deposits	$	1,420,249	911		0.06	%	$	1,062,474	1,812		0.17	%	$	750,606	1,990		0.27	%
Regular savings deposits	482,331		235		0.05		374,196		269		0.07		329,158		415		0.13
Money market savings deposits	3,453,764		4,871		0.14		2,741,230		12,424		0.45		1,751,989		25,437		1.45
Time deposits	1,579,230		9,005		0.57		1,924,429		27,146		1.41		1,604,996		33,839		2.11
Total interest-bearing deposits	6,935,574		15,022		0.22		6,102,329		41,651		0.68		4,436,749		61,681		1.39
Federal funds purchased	15,154		13		0.08		367,240		1,515		0.41		18,018		440		2.44
Repurchase agreements	143,734		169		0.12		142,283		450		0.32		134,070		721		0.54
Advances from FHLB	111,311		2,649		2.38		545,652		6,593		1.21		645,587		16,578		2.57
Subordinated debentures	208,199		7,913		3.80		224,306		10,192		4.54		64,251		3,141		4.89
Total borrowings	478,398		10,744		2.25		1,279,481		18,750		1.47		861,926		20,880		2.42
Total interest-bearing liabilities	7,413,972		25,766		0.35		7,381,810		60,401		0.82		5,298,675		82,561		1.56
Noninterest-bearing demand deposits	3,728,249						2,880,294						1,830,008
Other liabilities	157,374						173,501						130,146
Stockholders' equity	1,518,607						1,339,491						1,108,310
Total liabilities and stockholders' equity	$	12,818,202					$	11,775,096					$	8,367,139
Tax equivalent net interest income and spread			$	428,221	3.42	%			$	367,287	3.08	%			$	270,054	3.02	%
Less: tax-equivalent adjustment			3,703						4,128						4,746
Net interest income			$	424,518					$	363,159					$	265,308
Interest income/earning assets					3.77	%					3.90	%					4.58	%
Interest expense/earning assets					0.21	%					0.55	%					1.07	%
Net interest margin					3.56	%					3.35	%					3.51	%

(1)Tax-equivalent income has been adjusted using the combined marginal federal and state rate of 25.64% for 2021, and 25.54% for both 2020 and 2019. The annualized taxable-equivalent adjustments utilized in the above table to compute yields aggregated to $3.7 million, $4.1 million and $4.7 million in 2021, 2020 and 2019, respectively.

(2)The calculation of the respective yield or rate for each asset or liability category is based on the underlying interest accrual methodology for the individual products in accordance with their contractual terms.

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

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

41

Effect of Volume and Rate Changes on Tax-Equivalent Net Interest Income

The following table analyzes the reasons for the changes from year-to-year in the principal elements that comprise net tax-equivalent interest income:

	2021 vs. 2020						2020 vs. 2019
	Increase or (Decrease)		Due to Change in Average*:				Increase or (Decrease)		Due to Change in Average*:
(Dollars in thousands and tax equivalent)			Volume		Rate				Volume		Rate
Interest income from earning assets:
Commercial investor real estate loans	$	10,872	$	20,269	$	(9,397)	$	42,695	$	54,510	$	(11,815)
Commercial owner-occupied real estate loans	2,808		4,702		(1,894)		13,074		15,242		(2,168)
Commercial AD&C loans	4,198		8,453		(4,255)		1,021		11,428		(10,407)
Commercial business loans	24,758		7,184		17,574		28,333		41,933		(13,600)
Residential mortgage loans	(9,127)		(6,663)		(2,464)		(3,437)		(1,746)		(1,691)
Residential construction loans	(556)		485		(1,041)		(549)		(135)		(414)
Consumer loans	(3,667)		(2,272)		(1,395)		(4,035)		1,350		(5,385)
Loans held for sale	50		130		(80)		79		379		(300)
Taxable securities	(6,364)		(1,695)		(4,669)		(391)		8,236		(8,627)
Tax-exempt securities	3,048		4,907		(1,859)		(25)		1,066		(1,091)
Interest-bearing deposits with banks	279		392		(113)		(1,683)		1,260		(2,943)
Federal funds sold	—		—		—		(9)		(2)		(7)
Total tax-equivalent interest income	26,299		35,892		(9,593)		75,073		133,521		(58,448)
Interest expense on funding of earning assets:
Interest-bearing demand deposits	(901)		492		(1,393)		(178)		700		(878)
Regular savings deposits	(34)		58		(92)		(146)		58		(204)
Money market savings deposits	(7,553)		2,587		(10,140)		(13,013)		9,915		(22,928)
Time deposits	(18,141)		(4,198)		(13,943)		(6,693)		5,916		(12,609)
Federal funds purchased	(1,502)		(828)		(674)		1,075		1,732		(657)
Repurchase agreements	(281)		5		(286)		(271)		42		(313)
Advances from FHLB	(3,944)		(7,546)		3,602		(9,985)		(2,261)		(7,724)
Subordinated debentures	(2,279)		(697)		(1,582)		7,051		7,291		(240)
Total interest expense	(34,635)		(10,127)		(24,508)		(22,160)		23,393		(45,553)
Tax-equivalent net interest income	$	60,934	$	46,019	$	14,915	$	97,233	$	110,128	$	(12,895)

* Variances that are the combined effect of volume and rate, but cannot be separately identified, are allocated to the volume and rate variances based on their respective relative amounts.

42

Interest Income

2021 vs. 2020

The Company's total tax-equivalent interest income increased 6% during 2021 compared to the prior year due to a combined product of the full year's impact of the Revere acquisition completed in the second quarter of 2020, loan fees from the participation in the PPP program and the growth in the non-PPP commercial loan portfolios. The overall positive impact of these items on interest income was partially mitigated by a decline of 19% in interest income on the residential and consumer loan portfolio and an 11% decline in interest income on investment securities. Year-over-year, the average yield on the loan portfolio decreased by one basis point while the average yield on the investment securities decreased 39 basis points. Despite the declining average yields in 2021 on the majority of interest-earning assets, the positive impact from the $44.7 million in interest and fees received on PPP loans during 2021 contributed significantly to minimize the decline in the overall yield on the loan portfolio and softened the impact of the interest rate declines in the market on the total yield on interest-earning assets during 2021 compared to 2020. During 2021, total average balances of consumer loans and residential mortgage loans decreased, both reflecting the impact of the loan refinance and origination activity during the current year. The vast majority of mortgage loans originated during the year were sold in the secondary market while customers took advantage of the opportunity to eliminate their home equity lines and loans by including those balances in their refinanced mortgages. For the year ended December 31, 2021, the fair value amortization from the Revere acquisition reduced interest income $1.8 million compared to $0.6 million for the previous year.

2020 vs. 2019

The Company's total tax-equivalent interest income increased 21% during 2020, compared to 2019 driven by the Revere acquisition in the second quarter of 2020, as average loans and investments grew 42% and 38%, respectively. The average yield on loans decreased 60 basis points, while the average yield on investments decreased 88 basis points, both driven by the low interest rate environment that prevailed during 2020, a resultant effect of the pandemic. The increase in the average loan balances was the result of growth of the commercial loan portfolio. Consumer loans increased modestly while mortgage loans decreased, both reflecting the impact of the loan refinance and origination activity during 2020. The majority of mortgage loans originated during 2020 were sold in the secondary market. In addition, the Company's participation in the PPP program resulted in interest income of $20.1 million for the year ended December 31, 2020. Interest income for the year ended December 31, 2019, included $1.8 million in recovered interest income on acquired credit impaired loans.

Interest Expense

2021 vs. 2020

Interest expense decreased by $34.6 million or 57% in 2021 compared to 2020. The decrease in interest expense was driven by declining interest rates during the current year, in addition to the 63% reduction in average borrowings during the year. The decline in interest rates during 2021 compared to the prior year resulted in a 31 basis point decline in the average rate paid on money market accounts and an 84 basis point decline in the average rate paid on time deposits, while the average rate paid on borrowings rose 78 basis points. The combination of large average balance decreases in time deposits at lower average rates and borrowings at higher average rates provided an additional benefit to the overall rate decline in interest-bearing liabilities even as average money market, savings and demand deposit balances experienced significant growth. The increase in lower cost funding sources as average interest-bearing demand deposits increased 34% and regular savings deposits increased 29% during the year, contributed to a reduction in interest expense from the prior year. During the year, average noninterest-bearing deposits increased 29%, primarily from the funding provided to customers under the second round of the PPP program, which benefited the Company's overall funding costs and net interest margin. For the year ended December 31, 2021, the fair value amortization from the Revere acquisition reduced interest expense by $6.0 million compared to $13.3 million for the previous year.

2020 vs. 2019

Interest expense decreased by $22.2 million or 27% in 2020 compared to 2019. The decrease in interest expense was driven by declining interest rates during the year partially offset by the 39% increase in average interest-bearing liabilities resulting from the Revere acquisition. The significant decline in interest rates during 2020 resulted in a 100 basis point decline in the average rate paid on money market accounts while the average rate paid on time deposits decreased 70 basis points and the average rate paid on borrowings fell 95 basis points compared to 2019. For the year ended December 31, 2020, the Company's interest expense incurred for the use of Paycheck Protection Program Liquidity Facility ("PPPLF") as a result of its participation in the PPP program was $1.1 million. During 2020, average noninterest-bearing deposits increased 57% compared to 2019. The funding provided to customers under the PPP program contributed to the increase in noninterest-bearing deposits, which benefited the Company's overall funding costs and net interest margin.

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Interest Rate Performance

2021 vs. 2020

The Company’s net interest margin increased to 3.56% for 2021 compared to 3.35% for 2020, while the net interest spread increased to 3.42% in 2021 compared to 3.08% in 2020. The increase in the spread was the result of the decrease in the rates paid on interest-bearing liabilities exceeding the decrease in the yields earned on interest-earning assets. The increase in the net interest margin from the prior year is the result of the decline in the rate paid on interest-bearing liabilities of 47 basis points exceeding the 13 basis point decline in the yield on interest-earning assets. Growth in both the average interest-earning assets and average interest-bearing liabilities mainly as a result of the PPP program, the reduction of borrowings and higher cost deposit products, in combination with yield and rate declines, resulted in interest expense decreasing 57% while tax-equivalent interest income increased 6% during the year. Excluding the 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% compared to 3.23% for 2020.

2020 vs. 2019

The Company’s net interest margin decreased to 3.35% for 2020 compared to 3.51% for 2019 while the net interest spread increased to 3.08% in 2020 compared to 3.02% in 2019. The increase in the spread was the result of the decrease in the rates paid on interest-bearing liabilities exceeding the decrease in the yields earned on interest-earning assets. The decrease in the net interest margin in 2020 from 2019 is the result of the impact of the declining interest rate environment as the yield on interest-earning assets decreased 68 basis points while being partially offset by the 74 basis point decrease in the rate paid on interest-bearing liabilities. The growth of both interest-earning assets and interest-bearing liabilities as a result of the Revere acquisition, in combination with yield and rate declines, resulted in interest expense decreasing 27% while tax-equivalent interest income increased 21% during 2020. However, as a result of interest-earning asset growth exceeding the growth in interest-bearing liabilities, the declines in yields/rates resulted in the overall compression of the net interest margin in 2020. Excluding the impact of the amortization of the fair value marks derived from acquisitions, the net interest margin for 2020 would have been 3.23% compared to 3.46% for 2019.

Non-interest Income

Non-interest income amounts and trends are presented in the following table for the years indicated:

							2021/2020		2021/2020		2020/2019		2020/2019
(Dollars in thousands)	2021		2020		2019		$ Change		% Change		$ Change		% Change
Investment securities gains	$	212	$	467	$	77	$	(255)	(54.6)	%	$	390	506.5	%
Service charges on deposit accounts	8,241		7,066		9,692		1,175		16.6		(2,626)		(27.1)
Mortgage banking activities	24,509		40,058		14,711		(15,549)		(38.8)		25,347		172.3
Wealth management income	36,841		30,570		22,669		6,271		20.5		7,901		34.9
Insurance agency commissions	7,017		6,795		6,612		222		3.3		183		2.8
Income from bank owned life insurance	3,022		2,867		3,165		155		5.4		(298)		(9.4)
Bank card fees	6,896		5,672		5,616		1,224		21.6		56		1.0
Letter of credit fees	910		710		389		200		28.2		321		82.5
Extension fees	811		1,967		1,287		(1,156)		(58.8)		680		52.8
Prepayment penalty fees	3,216		961		404		2,255		234.7		557		137.9
Other income	10,380		5,583		6,700		4,797		85.9		(1,117)		(16.7)
Total non-interest income	$	102,055	$	102,716	$	71,322	$	(661)	(0.6)		$	31,394	44.0

2021 vs. 2020

Total non-interest income decreased 1% to $102.1 million for 2021, compared to $102.7 million for 2020. During the current year, increases in wealth management income, bank card fees and service charge income, and prepayment penalty fees, along with an increase other non-interest income, mitigated the impact of the decrease in income in mortgage banking activities.

Wealth management income is comprised of income from trust and estate services provided by the Bank and investment management fees earned by West Financial and RPJ, the Company’s investment management subsidiaries. Wealth management income grew 21% during 2021 from 2020. The growth in income was driven directly by the $927 million year-over-year growth in assets under

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management. Investment management fees from West Financial and RPJ increased 25% and trust services fees, primarily recurring fiduciary and trust management fees, increased 13% compared to the prior year. Overall, total assets under management by trust and wealth management grew to $6.1 billion at December 31, 2021 compared to $5.2 billion at December 31, 2020. Service charges on deposits increased 17% in 2021 compared to the prior year, which reflected the impact of 2020's temporary suspension of certain service fees as well as lower transaction volume, both a resulting reaction to the pandemic. Insurance agency commissions for the year ended December 31, 2021 grew 3% compared to the prior year as a result of increased commercial and physician's professional liability insurance commission income. The Company invests in bank-owned life insurance ("BOLI") products in order to manage the cost of employee benefit plans. Income from BOLI increased 5% in 2021 compared to the prior year primarily as a result of the increase in BOLI investments, a result of the new policies added during the year and from the Revere acquisition. At December 31, 2021, the total carrying amount of BOLI increased to $147.5 million as compared to $126.9 million at December 31, 2020. These policies are diversified by carrier in accordance with defined policies and practices. The average tax-equivalent yield on these insurance contract assets declined to 2.91% for 2021 compared to 3.09% for the prior year due to the declining interest rate environment during the current year. Bank card fees grew 22% compared to the prior year as a result of increased transaction volume. The combination of credit-related fees increased $1.3 million year-over-year, driven by prepayment penalty fees associated with commercial loans. Other non-interest income also grew 86% compared to the prior year primarily as the result of the combination of the full payoff of a purchased credit deteriorated loan, credit related fees and activity-based contractual vendor incentives.

2020 vs. 2019

Total non-interest income increased 44% to $102.7 million for 2020, compared to $71.3 million for 2019. The year ended December 31, 2020, included gains on sales of investment securities of $0.5 million compared to $0.1 million in 2019. Additionally, non-interest income in 2019 included life insurance mortality proceeds of $0.6 million. The increase in non-interest income was driven by increases in income from mortgage banking activities, wealth management income and credit-related fees from customers. The combined increases of these activities more than exceeded the decline in deposit services fees.

Service charges on deposits increased 27% in 2020 compared to 2019 due to a decline in consumer activity and the Company's decision to temporarily waive certain transaction fees to ease the burden of the pandemic on customers. Wealth management income grew 35% during 2020 from 2019 driven primarily by the first quarter 2020 acquisition of RPJ. Trust services fees increased 3% compared to 2019, due to an increase in recurring fiduciary and trust management fees. Investment management fees from West Financial and RPJ increased 73% during 2020 compared to 2019. Overall total assets under management by trust and wealth management grew to $5.2 billion at December 31, 2020 compared to $3.3 billion at December 31, 2019. Insurance agency commissions for the year ended December 31, 2020 grew 3% compared to 2019 due to increased contingent income and growth in physician's professional liability insurance. Income from BOLI decreased 9% in 2020 compared to 2019 primarily as a result of the lack of mortality proceeds in 2020 compared to the $0.6 million in proceeds that were received in 2019. At December 31, 2020, the total carrying amount of BOLI investments increased to $126.9 million as compared to $113.2 million at December 31, 2019 as a result of the addition of policies held by Revere. The average tax-equivalent yield on these insurance contract assets declined to 3.09% for 2020 compared to 3.80% for 2019 due to the declining interest rate environment during 2020. Bank card fees remained level from 2019 due to diminished activity related to the impact of the pandemic. Credit related fees and other non-interest income comprised of commercial loan portfolio sourced fees and miscellaneous income increased 5% during 2020 compared to 2019 primarily as a result of fees related to the commercial portfolio.

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Non-interest Expense

Non-interest expense amounts and trends are presented in the following table for the years indicated:

							2021/2020		2021/2020		2020/2019		2020/2019
(Dollars in thousands)	2021		2020		2019		$ Change		% Change		$ Change		% Change
Salaries and employee benefits	$	155,830	$	134,471	$	103,950	$	21,359	15.9	%	$	30,521	29.4	%
Occupancy expense of premises	22,405		21,383		19,470		1,022		4.8		1,913		9.8
Equipment expenses	12,883		12,224		10,720		659		5.4		1,504		14.0
Marketing	4,730		4,281		4,456		449		10.5		(175)		(3.9)
Outside data services	8,983		8,759		7,567		224		2.6		1,192		15.8
FDIC insurance	4,294		4,727		2,260		(433)		(9.2)		2,467		109.2
Amortization of intangible assets	6,600		6,221		1,946		379		6.1		4,275		219.7
Merger and acquisition expense	45		25,174		1,312		(25,129)		(99.8)		23,862		1,818.8
Professional fees and services	10,308		7,939		6,978		2,369		29.8		961		13.8
Postage and delivery	1,906		1,624		1,502		282		17.4		122		8.1
Communications	2,508		2,729		2,414		(221)		(8.1)		315		13.0
Loss on FHLB redemption	9,117		5,928		—		3,189		53.8		5,928		—
Other expenses	20,861		20,322		16,510		539		2.7		3,812		23.1
Total non-interest expense	$	260,470	$	255,782	$	179,085	$	4,688	1.8		$	76,697	42.8

2021 vs. 2020

Non-interest expenses increased $4.7 million to $260.5 million in 2021 compared to $255.8 million in 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 also included $25.2 million in merger and acquisition expense. Excluding the impact of these items resulted in a year-over-year growth rate in non-interest expense of 12%. This growth was driven by a combination of a full year's operational and compensation costs associated with the prior year acquisitions, staffing increases, and incentive compensation, in addition to increases in professional fees and services associated with certain strategic initiatives, intangible asset amortization, marketing and outside data services cost.

Salaries and employee benefits, the largest component of non-interest expenses, increased 16% in 2021 compared to the prior year, primarily in response to increased compensation costs associated with performance and production benchmarks, in addition to an increase in operational resulting from a full year of costs associated with the 2020 acquisitions and general staffing increases. The average number of full-time equivalent employees increased to 1,155 in 2021 compared to 1,080 for 2020. Benefit expense increased 26% during the current year due to a combination of increases in health insurance, pension cost, 401(k) plan contribution expense, stock compensation expense and FICA taxes as a result of the increased compensation expense.

Both occupancy and equipment expenses increased in 2021 compared to 2020, primarily due to increased depreciation expense driven by a full year's depreciation expense on the post-acquisition retained facilities, the closure of legacy branch facilities and increased software amortization. Marketing expense for 2021 increased by 10% compared to 2020 as a result of increased advertising initiatives during the current year. Outside data services expense increased 3% in 2021 compared to 2020 due to the increased cost of contractual services with volume-based components. FDIC insurance expense decreased 9% in 2021 compared to 2020 as a result of a reduction in the risk factors applied by the regulatory agency in the determination of the Company's premium. Amortization of intangibles increased from the prior year as a result of the inclusion of a full year's amortization of the various intangible assets recognized as part of the RPJ and Revere acquisitions. The 30% increase in professional fees and services is directly associated with the Company's strategic investments in technology for greater efficiency and data management. The loss on the redemption of the FHLB advances was the result of the early prepayment.

2020 vs. 2019

Non-interest expenses increased $76.7 million to $255.8 million in 2020 compared to $179.1 million in 2019. The operational impact of the Revere and RPJ acquisitions was included in 2020, in addition to $25.2 million in merger and acquisition expense compared to $1.9 million for 2019, and the $5.9 million loss on early redemption of acquired FHLB advances. The loss on the redemption was offset by the accelerated amortization of the purchase premium on the acquired FHLB advances, which is included in net interest

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income. Excluding merger and acquisition expense and the loss on the FHLB redemption, non-interest expense rose 26%, primarily as a result operational costs associated with the Revere acquisition.

Salaries and employee benefits, the largest component of non-interest expenses, increased 29% in 2020 due principally to increased salary expense derived from the two acquisitions, commissions associated with the significant level of mortgage loan originations and incentive payments based on the achievement of volume or revenue targets. The average number of full-time equivalent employees increased to 1,080 in 2020 compared to 913 for 2019. Benefit expense increased 19% during 2020 due to an increase in the matching contribution expense for the employee 401(k) plan and FICA taxes on salaries, both as a result of the increased number of employees during 2020, in addition to increases in various other employee benefit programs.

Both occupancy and equipment expenses increased in 2020 compared to 2019, primarily due to an increase in rental and depreciation expense driven by the additional facilities from the Revere and RPJ acquisitions. This increase was net of the impact of the Company's consolidation of six redundant branches during the second half of 2020 as a result of the Revere acquisition. Equipment expenses also increased in 2020 compared to 2019, due to an increase in software costs. Marketing expense for 2020 decreased by 4% compared to 2019 as a result of decreased advertising initiatives. Outside data services expense increased 16% in 2020 compared to 2019 due to the increased cost of contractual services with volume-based components, in addition to the necessity of maintaining both the Company's and Revere's data systems for a portion of 2020 until the systems were fully integrated. FDIC insurance expense increased 109% in 2020 compared to 2019 as the result of the assessment credit received during 2019 due to the industry deposit insurance fund reaching a stipulated benchmark level. Merger and acquisition expense associated with the Revere acquisition totaled $25.2 million in 2020 compared to merger and acquisition expense of $1.9 million in 2019. Amortization of intangible assets increased in 2020 from 2019 as a result of the increase in the various intangible assets recognized as part of the Revere and RPJ acquisitions. The loss on the redemption of the FHLB advances was the result of the prepayment of the acquired advances. This loss was offset by the accelerated amortization of the $5.9 million purchase premium associated with those acquired advances and was is included in net interest income. The remaining other non-interest expenses increased in 2020 compared to 2019, primarily driven by the reserve for lending commitments, processing costs and legacy branch closing costs.

Income Taxes

The Company’s income tax expense in 2021 was $76.6 million, compared to $27.5 million in 2020 and $36.4 million in 2019. The resulting effective rates for each year were 24.6% for 2021, 22.1% for 2020 and 23.8% for 2019. The increase in the effective rate in 2021 was due to the 2020 application of a change in tax laws that expanded the time permitted to utilize previous net operating losses. The Company applied this change in the prior year to utilize the net operating losses acquired as part of the 2018 WashingtonFirst acquisition to realize a tax benefit of $1.8 million.

Operating Expense Performance

Management views the GAAP efficiency ratio as an important financial measure of expense performance and cost management. The ratio expresses the level of non-interest expenses as a percentage of total revenue (net interest income plus total non-interest income). Lower ratios indicate improved productivity.

Non-GAAP Financial Measures

The Company also uses a traditional efficiency ratio that is a non-GAAP financial measure of operating expense control and efficiency of operations. Management believes that its traditional ratio better focuses attention on the operating performance of the Company over time than does a GAAP ratio, and is highly useful in comparing period-to-period operating performance of the Company’s core business operations. The non-GAAP efficiency ratio is used by management as part of its assessment of its performance in managing non-interest expenses. However, this measure is supplemental, and is not a substitute for an analysis of performance based on GAAP measures. The reader is cautioned that the non-GAAP efficiency ratio used by the Company may not be comparable to GAAP or non-GAAP efficiency ratios reported by other financial institutions.

In general, the efficiency ratio is non-interest expenses as a percentage of net interest income plus non-interest income. Non-interest expenses used in the calculation of the non-GAAP efficiency ratio exclude merger and acquisition expense, the amortization of intangible assets, and other non-recurring expenses, such as early prepayment penalties on FHLB advances. Income for the non-GAAP ratio includes the favorable effect of tax-exempt income, and excludes realized investment securities gains and losses, which may vary widely from period to period without appreciably affecting operating expenses, and non-recurring gains. The measure is different from the GAAP efficiency ratio, which also is presented in this report. The GAAP measure is calculated using non-interest expense and income amounts as shown on the face of the Consolidated Statements of Income. The GAAP and non-GAAP efficiency ratios are

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reconciled and provided in the following table. The GAAP efficiency ratio was 49.47% in 2021 compared to 54.90% for the prior year. This improvement in the efficiency ratio is the result of the 13% growth in revenues exceeding the 2% growth in non-interest expense during the current year. The non-GAAP efficiency ratio improved to 46.17% in 2021, compared to 46.53% in the prior year, as a result of the 13% growth in non-GAAP revenue exceeding the 12% growth in non-GAAP non-interest expense.

The Company has also presented core earnings, core earnings per diluted share, core return on average assets and core return on average tangible common equity in order to present metrics that are more comparable to prior periods to provide an indication of the core performance of the Company year-over-year. Core earnings 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 redemptions and investment securities gains, in each case net of tax. Average tangible common equity represents average stockholders’ equity adjusted for average goodwill and average intangible assets, net.

Reconciliation of Non-GAAP Financial Measures

	Year ended December 31,
(Dollars in thousands)	2021			2020			2019			2018			2017
Efficiency ratio (GAAP):
Non-interest expense	$	260,470		$	255,782		$	179,085		$	179,783		$	129,099
Net interest income plus non-interest income	$	526,573		$	465,875		$	336,630		$	321,494		$	220,011
Efficiency ratio (GAAP)	49.47		%	54.90		%	53.20		%	55.92		%	58.68		%
Efficiency ratio (non-GAAP):
Non-interest expense	$	260,470		$	255,782		$	179,085		$	179,783		$	129,099
Less non-GAAP adjustments:
Amortization of intangible assets	6,600			6,221			1,946			2,162			101
Loss on FHLB redemption	9,117			5,928			—			—			1,275
Merger and acquisition expense	45			25,174			1,312			11,766			4,252
Non-interest expense - as adjusted	$	244,708		$	218,459		$	175,827		$	165,855		$	123,471
Net interest income plus non-interest income	$	526,573		$	465,875		$	336,630		$	321,494		$	220,011
Plus non-GAAP adjustment:
Tax-equivalent income	3,703			4,128			4,746			4,715			7,459
Less non-GAAP adjustments:
Investment securities gains	212			467			77			190			1,273
Net interest income plus non-interest income - as adjusted	$	530,064		$	469,536		$	341,299		$	326,019		$	226,197
Efficiency ratio (non-GAAP)	46.17		%	46.53		%	51.52		%	50.87		%	54.59		%

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GAAP and Non-GAAP Performance Ratios

	Year ended December 31,
(Dollars in thousands)	2021			2020			2019			2018			2017
Core earnings (non-GAAP):
Net income (GAAP)	$	235,107		$	96,953		$	116,433		$	100,864		$	53,209
Plus/ (less) non-GAAP adjustments (net of tax):
Provision/ (credit) for credit losses (1)	(33,875)			63,789			3,460			6,665			1,800
Provision/ (credit) for credit losses on unfunded loan commitments (1)	(919)			1,173			—			—			—
Merger and acquisition expense (1)	33			18,745			969			8,692			2,570
Amortization of intangible assets (1)	4,908			4,632			1,438			1,597			61
Loss on FHLB redemption (1)	6,779			4,414			—			—			771
Investment securities gains (1)	(158)			(348)			(57)			(140)			(770)
Core earnings (non-GAAP)	$	211,875		$	189,358		$	122,243		$	117,678		$	57,641
Core earnings per diluted common share (non-GAAP):
Weighted-average common shares outstanding - diluted (GAAP)	46,899,085			44,132,251			35,617,924			35,522,903			24,000,960
Earnings per diluted common share (GAAP)	$	4.98		$	2.18		$	3.25		$	2.82		$	2.20
Core earnings per diluted common share (non-GAAP)	$	4.52		$	4.29		$	3.43		$	3.31		$	2.40
Core return on average assets (non-GAAP):
Average assets (GAAP)	$	12,818,202		$	11,775,096		$	8,367,139		$	7,965,514		$	5,239,920
Return on average assets (GAAP)	1.83		%	0.82		%	1.39		%	1.27		%	1.02		%
Core return on average assets (non-GAAP)	1.65		%	1.61		%	1.46		%	1.48		%	1.10		%
Core return on average tangible common equity (non-GAAP):
Average total stockholders' equity (GAAP)	$	1,518,607		$	1,339,491		$	1,108,310		$	1,024,795		$	550,926
Average goodwill	(370,223)			(365,543)			(347,149)			(345,583)			(85,768)
Average other intangible assets, net	(29,403)			(28,357)			(8,873)			(10,946)			(633)
Average tangible common equity (non-GAAP)	$	1,118,981		$	945,591		$	752,288		$	668,266		$	464,525
Return on average tangible common equity (non-GAAP)	21.01		%	10.25		%	15.33		%	14.66		%	11.35		%
Core return on average tangible common equity (non-GAAP)	18.93		%	20.03		%	16.25		%	17.61		%	12.41		%

(1)Tax adjustments have been adjusted using the combined marginal federal and state rate of 25.64% for 2021, 25.54% both 2020, 26.13% for both 2019 and 2018, and 39.55% for 2017.

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FINANCIAL CONDITION

The Company’s total assets decreased 2% to $12.6 billion at December 31, 2021 compared to $12.8 billion at December 31, 2020. During the year, excess liquidity resulting from deposit growth and PPP loan forgiveness was used to reduce borrowings as well as fund the loan growth that occurred in the fourth quarter of the current year.

Total loans at December 31, 2021 were $10.0 billion compared to $10.4 billion at December 31, 2020. At year-end 2021, investment securities had increased 7% to $1.5 billion compared to year end 2020. At December 31, 2021, total deposits were $10.6 billion compared to $10.0 billion at the end of 2020, a 6% increase during the period. Total borrowings were $313.8 million at December 31, 2021 compared to $1.1 billion at December 31, 2020.

Loans

A comparison of the loan portfolio for the years indicated is presented in the following table:

	December 31,
	2021				2020				Year-to-Year Change
(Dollars in thousands)	Amount		%		Amount		%		$ Change		% Change
Commercial real estate:
Commercial investor real estate	$	4,141,346	41.5	%	$	3,634,720	34.9	%	$	506,626	13.9	%
Commercial owner-occupied real estate	1,690,881		17.0		1,642,216		15.8		48,665		3.0
Commercial AD&C	1,088,094		10.9		1,050,973		10.1		37,121		3.5
Commercial business	1,481,834		14.9		2,267,548		21.8		(785,714)		(34.7)
Total commercial loans	8,402,155		84.3		8,595,457		82.6		(193,302)		(2.2)
Residential real estate:
Residential mortgage	937,570		9.4		1,105,179		10.6		(167,609)		(15.2)
Residential construction	197,652		2.0		182,619		1.8		15,033		8.2
Consumer	429,714		4.3		517,254		5.0		(87,540)		(16.9)
Total residential and consumer loans	1,564,936		15.7		1,805,052		17.4		(240,116)		(13.3)
Total loans	$	9,967,091	100.0	%	$	10,400,509	100.0	%	$	(433,418)	(4.2)

Total loans declined by 4% to $10.0 billion at December 31, 2021, compared to $10.4 billion at December 31, 2020, driven by the reduction of $874.4 million in PPP loans. Excluding PPP loans, total loans at December 31, 2021 grew 5% to $9.8 billion as compared to $9.3 billion at December 31, 2020, as the commercial loan portfolio grew $681.1 million, while the residential mortgage and consumer loans declined $255.1 million due to run-off. The growth in the commercial portfolio, excluding PPP loans, occurred in all commercial portfolios led by the $506.6 million or 14% growth in the investor real estate commercial portfolio. The year-over-year decline in the mortgage loan portfolio resulted from the continuing sale of a majority of new mortgage loan production. In the second half of 2021, the Company generated $2.1 billion in new gross loan production of which $1.5 billion was funded, which more than offset $873.8 million in commercial loan run-off.

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Loan Balances by Industry

Loan balances by industry for specific lending portfolios are presented in the following table:

	December 31, 2021
	Owner-Occupied Real Estate		Commercial Business
(Dollars in thousands)	Amount		Amount		Total Amount
Accommodation & Food Services	$	98,383	$	114,829	$	213,212
Administrative & Support	37,382		68,041		105,423
Agriculture & Forestry	5,844		2,740		8,584
Arts, Entertainment & Recreation	120,483		18,186		138,669
Construction	208,002		204,629		412,631
Educational Services	141,742		118,434		260,176
Finance & Insurance	25,493		46,375		71,868
Health Care & Social Assistance	198,867		110,054		308,921
Information	8,837		4,782		13,619
Management of Companies	—		36,183		36,183
Manufacturing	67,791		44,817		112,608
Other Services	299,389		60,260		359,649
Professional, Scientific & Technical Services	114,825		208,872		323,697
Public Administration	8,036		5,665		13,701
Real Estate Rental & Leasing	52,516		277,283		329,799
Retail	197,581		41,447		239,028
Transportation & Warehousing	34,836		23,437		58,273
Utilities	2,231		922		3,153
Wholesale	68,643		94,878		163,521
Total loans	$	1,690,881	$	1,481,834	$	3,172,715

Loan Maturities and Interest Rate Sensitivity

Loan maturities and interest rate characteristics for loan portfolios are presented in the following table:

	At December 31, 2021
	Fixed Rate Loans										Variable Rate Loans
(In thousands)	In One Year or Less		After One Year Through Five Years		After Five Years Through Fifteen Years		After Fifteen Years		Total		In One Year or Less		After One Year Through Five Years		After Five Years Through Fifteen Years		After Fifteen Years		Total
Commercial Real Estate:
Commercial investor R/E	$	290,018	$	1,443,056	$	1,280,248	$	—	$	3,013,322	$	713,606	$	387,272	$	27,146	$	—	$	1,128,024
Commercial owner-occupied R/E	163,913		549,490		686,858		11,572		1,411,833		123,072		132,995		22,981		—		279,048
Commercial AD&C	55,429		43,421		47,654		180		146,684		915,416		14,926		11,068		—		941,410
Commercial business	347,538		267,967		24,373		437		640,315		739,981		36,849		23,419		41,270		841,519
Total commercial loans	856,898		2,303,934		2,039,133		12,189		5,212,154		2,492,075		572,042		84,614		41,270		3,190,001
Residential real estate:
Residential mortgage	45,837		111,611		121,415		34,353		313,216		256,863		283,162		67,754		16,575		624,354
Residential construction	8,476		25,812		—		—		34,288		159,278		4,086		—		—		163,364
Consumer	2,859		6,096		1,652		42		10,649		402,909		10,730		1,822		3,604		419,065
Total residential and consumer loans	57,172		143,519		123,067		34,395		358,153		819,050		297,978		69,576		20,179		1,206,783
Total loans	$	914,070	$	2,447,453	$	2,162,200	$	46,584	$	5,570,307	$	3,311,125	$	870,020	$	154,190	$	61,449	$	4,396,784

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Composition of Investment Securities

The composition of investment securities for the periods indicated is presented in the following table:

	December 31,
	2021				2020				Year-to-Year Change
(Dollars in thousands)	Amount		%		Amount		%		$ Change		% Change
Available-for-sale securities(1):
U.S. treasuries and government agencies	$	68,539	4.5	%	$	43,297	3.1	%	$	25,242	58.3	%
State and municipal	326,402		21.7		390,367		27.6		(63,965)		(16.4)
Mortgage-backed and asset-backed(2)	1,070,955		71.1		904,432		64.0		166,523		18.4
Corporate debt	—		—		9,925		0.7		(9,925)		(100.0)
Total available-for-sale securities(3)	1,465,896		97.3		1,348,021		95.4		117,875		8.7
Equity securities:
Federal Reserve Bank stock	34,097		2.3		38,650		2.7		(4,553)		(11.8)
Federal Home Loan Bank of Atlanta stock	6,392		0.4		26,433		1.9		(20,041)		(75.8)
Other equity securities	677		—		677		—		—		—
Total equity securities	41,166		2.7		65,760		4.6		(24,594)		(37.4)
Total securities(3)	$	1,507,062	100.0	%	$	1,413,781	100.0	%	93,281		6.6

(1)At estimated fair value.

(2)Issued by a U.S. Government Agency or secured by U.S. Government Agency collateral.

(3)The outstanding balance of no single issuer, except for U.S. Government Agency securities, exceeded ten percent of stockholders' equity at December 31, 2021 or 2020.

The investment portfolio consists primarily of U.S. Treasuries, U.S. Agency securities, U.S. Agency mortgage-backed and asset-backed securities and collateralized mortgage obligations and state and municipal securities. As the portfolio grew 7% during 2021, the composition of the portfolio migrated away from state and municipal securities with longer terms to shorter term U.S. treasuries and government agencies securities and mortgage and asset-backed securities to provide for greater reinvestment opportunities in anticipation of rising interest rates in 2022. In addition, floating term securities were also reduced to due to low yields and LIBOR indexes. As a result of the strategic migration, at December 31, 2021, mortgage and asset-backed securities comprised 71% of the investment portfolio compared to 64% at December 31, 2020.

At December 31, 2021, 96% of the investment portfolio was invested in Aa/AA or Aaa/AAA rated securities compared to 93% at December 31, 2020. The average duration of the investment portfolio was 4.3 years compared to 4.2 years at the end of the prior year. The composition and duration of the investment portfolio has resulted in a portfolio with low credit risk that is expected to provide the liquidity needed to meet lending and other funding demands. The portfolio is monitored on a continual basis with consideration given to interest rate trends and the structure of the yield curve and with constant assessment of economic projections and analysis.

Other Earning Assets

Residential mortgage loans held for sale decreased to $39.4 million at December 31, 2021 compared to $78.3 million as of December 31, 2020, due to the decrease in volume of originations as residential lending rates rose during the year and the decision to hold a larger percentage of production on the balance sheet to provide for renewed growth of the residential mortgage portfolio. Interest-bearing deposits with banks increased by $151.0 million to $354.1 million at December 31, 2021 compared to $203.1 million at December 31, 2020, primarily as a result of the cash received from the forgiveness of PPP loans.

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Deposits

The composition of deposits for the periods indicated is presented in the following table:

	December 31,
	2021				2020				Year-to-Year Change
(Dollars in thousands)	Amount		%		Amount		%		$ Change		% Change
Noninterest-bearing deposits	$	3,779,630	35.6	%	$	3,325,547	33.1	%	$	454,083	13.7	%
Interest-bearing deposits:
Demand	1,604,714		15.1		1,292,164		12.9		312,550		24.2
Money market savings	3,415,663		32.1		3,339,645		33.3		76,018		2.3
Regular savings	533,862		5.0		418,051		4.2		115,811		27.7
Time deposits of less than $250,000	910,464		8.6		1,180,636		11.8		(270,172)		(22.9)
Time deposits of $250,000 or more	380,398		3.6		477,026		4.7		(96,628)		(20.3)
Total interest-bearing deposits	6,845,101		64.4		6,707,522		66.9		137,579		2.1
Total deposits	$	10,624,731	100.0	%	$	10,033,069	100.0	%	$	591,662	5.9

Deposits and Borrowings

Total deposits at December 31, 2021 were $10.6 billion compared to $10.0 billion at December 31, 2020, a 6% increase during the period. This growth was driven principally from impact of the PPP program and the growth in transaction relationships, while time deposits declined $366.8 million. The loan-to-deposit ratio declined to 94% at the end of 2021 compared to 104% the end of 2020 as a result of the balance sheet impact from PPP forgiveness as loans declined and deposits grew during the period. The deposit increase from year-end 2020 was driven primarily by increases of 14% in non-interest bearing demand, 24% in interest-bearing demand and 28% in regular savings categories, which more than offset the 22% decline in time deposits. A large portion of the demand deposit growth is the result of the funds from the PPP program, which were placed in deposit accounts at the Bank. A large portion of the liquidity from the deposit of PPP funds into accounts at the Bank provided funding for the complete liquidation of federal funds purchased and FHLB advances and the reduction of brokered time deposits during 2021 and resulted in lower interest expense during the year. At December 31, 2021, interest-bearing deposits represented 64% of total deposits with the remaining 36% in noninterest-bearing balances. At December 31, 2020, interest-bearing deposits represented 67% of total deposits, while non-interest bearing deposits represented 33%.

The total amount of deposits that exceeded the $250,000 insured limit provided by the FDIC was approximately $5.3 billion at December 31, 2021. This estimate is based on the determination of known deposit account relationships of each depositor and the insurance guidelines provided by the FDIC.

Total borrowings decreased 73% at December 31, 2021 compared to December 31, 2020. The primary cause of the year-over-year decrease in borrowings was driven by the previously mentioned reduction of federal funds purchased and FHLB advances. In addition, further reductions occurred in borrowings during 2021 as a result of full redemption of subordinated debt that was assumed in the Revere and WashingtonFirst acquisitions.

Capital Management

Management monitors historical and projected earnings, dividends and asset growth, as well as risks associated with the various types of on and off-balance sheet assets and liabilities, in order to determine appropriate capital levels. Stockholders’ equity at December 31, 2021 remained at $1.5 billion compared to December 31, 2020. During 2021, the net growth in capital from earnings, net of dividends, was significantly offset by the Company's repurchase of 2,350,000 shares of common stock resulting in a $107.3 million reduction in stockholders’ equity. The ratio of average equity to average assets was 11.85% for the year ended December 31, 2021, as compared to 11.38% for the year ended December 31, 2020.

Risk-Based Capital Ratios

Bank holding companies and banks are required to maintain capital ratios in accordance with guidelines adopted by the federal bank regulators. These guidelines are commonly known as Risk-Based Capital guidelines. The actual regulatory ratios and required ratios for capital adequacy are summarized for the Company in the following table.

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	Ratios at December 31,		Minimum Regulatory Requirements
	2021	2020
Tier 1 Leverage	9.26%	8.92%	4.00%
Common Equity Tier 1 Capital to risk-weighted assets	11.91%	10.58%	4.50%
Tier 1 Capital to risk-weighted assets	11.91%	10.58%	6.00%
Total Capital to risk-weighted assets	14.59%	13.93%	8.00%

Regulatory capital at December 31, 2021 was comprised of Tier 1 capital of $1.1 billion and total qualifying capital of $1.4 billion. As of December 31, 2021, the most recent notification from the Bank’s primary regulator categorized the Bank as a "well-capitalized" institution under the prompt corrective action rules of the Federal Deposit Insurance Act. Designation as a well-capitalized institution under these regulations is not a recommendation or endorsement of the Company or the Bank by federal bank regulators.

The minimum capital level requirements applicable to the Company and the Bank are: (1) a Tier 1 leverage ratio of 4%; (2) a common equity Tier 1 capital ratio of 4.5%; (3) a Tier 1 capital ratio of 6%; and (4) a total capital ratio of 8%. Covered financial institutions must also maintain a “capital conservation buffer” of 2.5% above the regulatory minimum capital requirements, which must consist entirely of common equity Tier 1 capital. An institution would be subject to limitations on paying dividends, engaging in share repurchases, and paying discretionary bonuses to executive officers if its capital level falls below the buffer amount. These limitations establish a maximum percentage of eligible retained income that could be utilized for such actions.

The main drivers of the in the improvement in the ratios at December 31, 2021 from December 31, 2020 were the 2021 earnings, net of the repurchase program impact, coupled with the reduction in risk-weighted assets. During the year, the Company continued to elect to apply the provisions of the CECL deferral transition in the determination of its risk-based capital ratios. At December 31, 2021, the impact of the application of this deferral transition provided an additional $11.5 million in Tier 1 capital compared to $22.5 million at December 31, 2020, and resulted in raising the common equity Tier 1 ratio by 12 and 22 basis points, respectively.

Tangible Common Equity

Tangible common equity, tangible assets and tangible book value per common share are non-GAAP financial measures calculated using GAAP amounts. Tangible common equity and tangible assets exclude the balances of goodwill and other intangible assets from total stockholders’ equity and total assets. Management believes that this non-GAAP financial measure provides information to investors that may be useful in understanding the Company's financial condition. Because not all companies use the same calculation of tangible common equity and tangible assets, this presentation may not be comparable to other similarly titled measures calculated by other companies.

Tangible common equity remained at $1.1 billion at December 31, 2021, compared to December 31, 2020. At December 31, 2021, the ratio of tangible common equity to tangible assets increased to 9.21% compared to 8.61% at December 31, 2020. The increase in tangible common equity in 2021 from 2020 was primarily the result of the 2% decrease in tangible assets and the 5% growth in tangible common equity, net of the impact of the Company's stock repurchase program. Excluding PPP loans from tangible assets at December 31, 2021, the tangible common equity ratio would be 9.35%.

Non-GAAP Tangible Common Equity Ratios

A reconciliation of the non-GAAP ratio of tangible common equity to tangible assets and tangible book value per common share are provided in the following table.

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	December 31,
(Dollars in thousands, except per share data)	2021			2020			2019			2018			2017
Tangible common equity ratio:
Total stockholders' equity	$	1,519,679		$	1,469,955		$	1,132,974		$	1,067,903		$	563,816
Goodwill	(370,223)			(370,223)			(347,149)			(347,149)			(85,768)
Other intangible assets, net	(25,920)			(32,521)			(7,841)			(9,788)			(580)
Tangible common equity	$	1,123,536		$	1,067,211		$	777,984		$	710,966		$	477,468
Total assets	$	12,590,726		$	12,798,429		$	8,629,002		$	8,243,272		$	5,446,675
Goodwill	(370,223)			(370,223)			(347,149)			(347,149)			(85,768)
Other intangible assets, net	(25,920)			(32,521)			(7,841)			(9,788)			(580)
Tangible assets	$	12,194,583		$	12,395,685		$	8,274,012		$	7,886,335		$	5,360,327
Outstanding common shares	45,118,930			47,056,777			34,970,370			35,530,734			23,996,293
Tangible common equity ratio	9.21		%	8.61		%	9.40		%	9.02		%	8.91		%
Book value per common share	$	33.68		$	31.24		$	32.40		$	30.06		$	23.50
Tangible book value per common share	$	24.90		$	22.68		$	22.25		$	20.01		$	19.90

Credit Risk

The fundamental lending business of the Company is based on understanding, measuring and controlling the credit risk inherent in the loan portfolio. The Company’s loan portfolio is subject to varying degrees of credit risk. Credit risk entails both general risks, which are inherent in the process of lending, and risk specific to individual borrowers. The Company’s credit risk is mitigated through portfolio diversification, which limits exposure to any single customer, industry or collateral type. Typically, each consumer and residential lending product has a generally predictable level of credit losses based on historical loss experience. Residential mortgage and home equity loans and lines generally have the lowest credit loss experience. Loans secured by personal property, such as auto loans, generally experience medium credit losses. Unsecured loan products, such as personal revolving credit, have the highest credit loss experience and, for that reason, the Company has chosen not to engage in a significant amount of this type of lending. Credit risk in commercial lending can vary significantly, as losses as a percentage of outstanding loans can shift widely during economic cycles and are particularly sensitive to changing economic conditions. Generally, improving economic conditions result in improved operating results on the part of commercial customers, enhancing their ability to meet their particular debt service requirements. Improvements, if any, in operating cash flows can be offset by the impact of rising interest rates that may occur during improved economic times. Inconsistent economic conditions may have an adverse effect on the operating results of commercial customers, reducing their ability to meet debt service obligations.

Loans acquired as a part of an acquisition transaction that have evidence of more-than-insignificant credit deterioration since their origination are considered “purchased credit deteriorated” or “PCD” loans and are recorded at their initial fair values as of the acquisition date. The identification of loans that have experienced a more-than-insignificant deterioration in credit quality since their origination requires judgment and an assessment of a number of factors. For further discussion regarding the acquired loans, including PCD loans, refer to that section of Note 1 - Significant Accounting Policies in the Notes to the Consolidated Financial Statements.

To control and manage credit risk, management has a credit process in place to reasonably ensure that credit standards are maintained along with an in-house loan administration, accompanied by oversight and review procedures. The primary purpose of loan underwriting is the evaluation of specific lending risks and involves the analysis of the borrower’s ability to service the debt as well as the assessment of the value of the underlying collateral. Oversight and review procedures include monitoring the credit quality of the portfolio, providing early identification of potential problem credits and proactive management of problem credits.

The Company recognizes a lending relationship as non-performing when either the loan becomes 90 days delinquent or as a result of factors, such as bankruptcy, interruption of cash flows, etc., considered at the monthly credit committee meeting. Classification as a non-accrual loan is based on a determination that the Company may not collect all principal and/or interest payments according to

55

contractual terms. When a loan is placed on non-accrual status all accrued but unpaid interest is reversed from interest income. Typically, all payments received on non-accrual loans are first applied to the remaining principal balance of the loans. Any additional recoveries are credited to the allowance up to the amount of all previous charge-offs.

The level of non-performing loans to total loans decreased to 0.49% at December 31, 2021 compared to 1.11% at December 31, 2020. Non-performing loans were $48.8 million at December 31, 2021 in comparison to $115.5 million at December 31, 2020. The reduction in non-performing loans over the prior year was driven by partial payoffs and eventual charge-offs of a few large borrowings within the hospitality sector with an aggregate balance of $32.9 million. These large relationships were collateral dependent and required no individual reserves due to sufficient values of their underlying collateral. Charged-off amounts of these credits did not exceed their associated established individual reserves. During 2021, non-accrual commercial business loans decreased $14.5 million, while non-accrual commercial real estate loans decreased $49.4 million. Combined residential and consumer non-accrual lending portfolio declined $2.4 million. These decreases were driven by net payments of $61.2 million during the current year.

While the diversification of the lending portfolio among different commercial, residential and consumer product lines along with different market conditions of the D.C. suburbs, Northern Virginia and Baltimore metropolitan area has mitigated some of the risks in the portfolio, local economic conditions and levels of non-performing loans may continue to be influenced by the conditions being experienced in various business sectors of the economy on both a regional and national level. As noted, risks, uncertainties and various other factors related to the COVID-19 pandemic include the potential impact on the economy and the businesses of the Company's borrowers and their ability to remit contractual payments on their obligations to the Company in a timely manner. The current ability to predict the ultimate outcome or impact of the remedial actions and stimulus measures adopted by the government on the economic well-being of the Company's borrowers and the manifestations of all these factors including the future performance aspect of the credit portfolio remains uncertain.

The Company’s methodology for evaluating whether a loan shall be placed on non-accrual status begins with risk-rating credits on an individual basis and includes consideration of the borrower’s overall financial condition, payment record and available cash resources that may include the sufficiency of collateral value and, in a select few cases, verifiable support from financial guarantors. In measuring a specific allowance, the Company looks primarily to the value of the collateral (adjusted for estimated costs to sell) or projected cash flows generated by the operation of the collateral as the primary sources of repayment of the loan. The Company may consider the existence of guarantees and the financial strength and wherewithal of the guarantors involved in any loan relationship. Guarantees may be considered as a source of repayment based on the guarantor’s financial condition and payment capacity. Accordingly, absent a verifiable payment capacity, a guarantee alone would not be sufficient to avoid classifying the loan as non-accrual.

Management has established a credit process that dictates that structured procedures be performed to monitor these loans between the receipt of an original appraisal and the updated appraisal. These procedures include the following:

•An internal evaluation is updated periodically to include borrower financial statements and/or cash flow projections.

•The borrower may be contacted for a meeting to discuss an updated or revised action plan which may include a request for additional collateral.

•Re-verification of the documentation supporting the Company’s position with respect to the collateral securing the loan.

•At the monthly credit committee meeting the loan may be downgraded and an individual allowance may be decided upon in advance of the receipt of the appraisal.

•Upon receipt of the updated appraisal (or based on an updated internal financial evaluation) the loan balance is compared to the appraisal and an individual allowance is decided upon for the particular loan, typically for the amount of the difference between the appraised value (adjusted for estimated costs to sell) and the loan balance.

•Evaluation of whether adverse changes in the value of the collateral are expected over the remainder of the loan’s expected life.

•The Company will individually assess the allowance for credit losses based on the fair value of the collateral for any collateral dependent loans where the borrower is experiencing financial difficulty or when the Company determines that the foreclosure is probable. The Company will charge-off the excess of the loan amount over the fair value of the collateral adjusted for the estimated selling costs.

Loans considered to be troubled debt restructurings (“TDRs”) are loans that have their terms restructured (e.g., interest rates, loan maturity date, payment and amortization period, etc.) in circumstances that provide payment relief to a borrower experiencing financial difficulty. All restructured collateral-dependent loans are individually assessed for allowance for credit losses and may either

56

be in accruing or non-accruing status. Non-accruing restructured loans may return to accruing status provided doubt has been removed concerning the collectability of principal and interest as evidenced by a sufficient period of payment performance in accordance with the restructured terms. Loans may be removed from the restructured category if the borrower is no longer experiencing financial difficulty, a re-underwriting event took place and the revised loan terms of the subsequent restructuring agreement are considered to be consistent with terms that can be obtained in the credit market for loans with comparable risk.

The Coronavirus Aid, Relief, and Economic Security ("CARES") Act, which was signed into law in March 2020, provided financial institutions the option to temporarily suspend certain requirements under GAAP related to TDRs for a limited period of time during the COVID-19 pandemic. The CARES Act provided for extensions of up to 180 days in the delay of loan principal and/or interest payments for customers who are affected by the COVID-19 pandemic. These customers must meet certain criteria, such as they were in good standing and not more than 30 days past due prior to the pandemic, as well as other requirements noted in regulatory guidance. In some cases, customers received a second and third accommodation. The initial period to request payment accommodation expired on December 31, 2020. However, the Consolidation Appropriations Act, which amended CARES Act, extended the expiration date to January 1, 2022. Based on regulatory guidance, the Company did not classify the temporary COVID-19 loan modifications as TDRs, nor were the customers considered past due with regards to their deferred payments. Upon exiting the loan modification deferral program, the measurement of loan delinquency reverted to the provisions in effect prior to entry into the program.

At the height of and in response to the COVID-19 pandemic, the Company developed a set of guidelines to provide relief to qualified commercial, mortgage and consumer loans customers. These guidelines provided for deferment of certain loan payments of up to 180 days. Initial deferrals of 90 days were granted to qualified customers with the option to request further deferrals, each for an additional 90 days. Ultimately, since the inception of the deferral program, the Company granted payment modifications/deferrals on over 2,500 loans with an aggregate balance of $2.1 billion. At December 31, 2021, 38 loans with an aggregate balance of $7.6 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.

The Company approved and funded over 8,500 PPP loans for a total of $1.6 billion during 2020 and 2021. Loans originated under the program are 100% guaranteed by the Small Business Administration under the CARES Act. In the latter part of 2020, the Company began accepting digital PPP forgiveness applications. At December 31, 2021, loans totaling $1.4 billion have been forgiven and an additional $52.0 million have been repaid by borrowers.

The Company may extend the maturity of a performing or current loan that may have some inherent weakness associated with the loan. However, the Company generally follows a policy of not extending maturities on non-performing loans under existing terms. Maturity date extensions only occur under revised terms that clearly place the Company in a position to increase the likelihood of or assure full collection of the loan under the contractual terms and/or terms at the time of the extension that may eliminate or mitigate the inherent weakness in the loan. These terms may incorporate, but are not limited to additional assignment of collateral, significant balance curtailments/liquidations and assignments of additional project cash flows. Guarantees may be a consideration in the extension of loan maturities. As a general matter, the Company does not view the extension of a loan to be a satisfactory approach to resolving non-performing credits. On an exception basis, certain performing loans that have displayed some inherent weakness in the underlying collateral values, an inability to comply with certain loan covenants which are not affecting the performance of the credit or other identified weakness may be extended.

The Company typically sells a portion of its fixed-rate residential mortgage originations in the secondary mortgage market. Concurrent with such sales, the Company is required to make customary representations and warranties to the purchasers about the mortgage loans and the manner in which they were originated. The related sale agreements grant the purchasers recourse back to the Company, which could require the Company to repurchase loans or to share in any losses incurred by the purchasers. This recourse exposure typically extends for a period of nine to eighteen months after the sale of the loan although the time frame for repurchase requests can extend for an indefinite period. Such transactions could be due to a number of causes including borrower fraud or early payment default. The Company has seen a very limited number of repurchase and indemnity demands from purchasers for such events and routinely monitors its exposure in this regard. The Company maintains a liability of $0.5 million for probable losses due to repurchases. The Company believes that this reserve is appropriate.

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Mortgage loan servicing rights are accounted for at amortized cost and are monitored for impairment on an ongoing basis. At December 31, 2021, the amortized cost of the Company's mortgage loan servicing rights was $0.4 million compared to $0.6 million at December 31, 2020. The decline in the year-over-year balance was the result of the loan pay-offs. The Company did not incur any impairment losses during 2021.

The Company may periodically engage in whole loan sale transactions of its residential mortgage loans as a part its interest rate risk management strategy. The Company did not engage in any whole loan sales during 2021.

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Analysis of Credit Risk

The following table presents information with respect to non-accrual loans, 90-day past due delinquencies and non-performing assets for the years indicated:

	At December 31,
(Dollars in thousands)	2021			2020
Non-accrual loans:
Commercial real estate:
Commercial investor real estate	$	12,489		$	45,227
Commercial owner-occupied real estate	9,306			11,561
Commercial AD&C	650			15,044
Commercial business	8,420			22,933
Residential real estate:
Residential mortgage	8,441			10,212
Residential construction	55			—
Consumer	6,725			7,384
Total non-accrual loans(1)	46,086			112,361
Loans 90 days past due:
Commercial real estate:
Commercial investor	—			133
Commercial owner-occupied	—			—
Commercial AD&C	—			—
Commercial business	—			161
Residential real estate:
Residential mortgage	557			480
Residential construction	—			—
Consumer	—			—
Total 90 days past due loans	557			774
Restructured loans (accruing)	2,167			2,317
Total non-performing loans(2)	48,810			115,452
Other real estate owned, net	1,034			1,455
Total non-performing assets	$	49,844		$	116,907
Non-accrual loans to total loans	0.46		%	1.08		%
Non-performing loans to total loans	0.49		%	1.11		%
Non-performing assets to total assets	0.40		%	0.91		%
Allowance for credit losses to non-accrual loans	236.83		%	147.17		%
Allowance for credit losses to non-performing loans	223.61		%	143.23		%

(1)Gross interest income that would have been recorded in 2021 if non-accrual loans shown above had been current and in accordance with their original terms was $5.1 million. No interest income was accrued on these loans during the year while on non-accrual status. Please see Note 1 - Significant Accounting Policies in the Notes to Consolidated Financial Statements for a description of the Company’s policy for placing loans on non-accrual status.

(2)Performing loans considered potential problem loans, as defined and identified by management, amounted to $22.1 million at December 31, 2021. Although these are loans where known information about the borrowers' possible credit problems causes management to have concerns as to the borrowers' ability to comply with the loan repayment terms, most are current as to payment terms, well collateralized and are not believed to present significant risk of loss. Loans classified for regulatory purposes not included in either non-performing or potential problem loans consist only of "other loans especially mentioned" and do not, in management's opinion, represent or result from trends or uncertainties reasonably expected to materially impact future operating results, liquidity or capital resources, or represent material credits where known information about the borrowers' possible credit problems causes management to have doubts as to the borrowers' ability to comply with the loan repayment terms.

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Allowance for Credit Losses

The allowance for credit losses represents management’s estimate of the portion of the Company’s loans’ amortized cost basis not expected to be collected over the loans’ contractual life. As a part of the credit oversight and review process, the Company maintains an allowance for credit losses (the “allowance”). The following allowance section should be read in conjunction with the “Allowance for Credit Losses” section in Note 1 – Significant Accounting Policies in the Notes to the Consolidated Financial Statements. The Company excludes accrued interest receivable from the measurement of the allowance as the Company has a non-accrual policy to reverse any accrued, uncollected interest income when loans are placed on non-accrual status.

The appropriateness of the allowance is determined through ongoing evaluation of the credit portfolio, and involves consideration of a number of factors. Determination of the allowance is inherently subjective and requires significant estimates and assumptions, including consideration of current conditions and economic forecasts, which may be susceptible to significant volatility. The forecasted economic metrics with the greatest impact in order of magnitude were the expected level of business bankruptcies, the expected future unemployment rate and, to a lesser degree, the house price index. The most sensitive assumptions include the length of the forecast and reversion periods, forecast of economic variables and prepayment and curtailment speeds. The amount of expected losses can vary significantly from the amounts actually observed. Loans deemed uncollectible are charged-off against the allowance, while recoveries are credited to the allowance when received. Management adjusts the level of the allowance through the provision for credit losses in the Consolidated Statements of Income.

The provision for credit losses was a credit of $45.6 million in 2021 and a charge of $85.7 million in 2020. During the current year, the credit for the provision for credit losses, compared to the prior year's charge to the provision, reflects the impact of the continued improvement in forecasted economic metrics, notably the rate of unemployment, anticipated business bankruptcies and the housing price index. These decreases were partially offset by the significant loan growth that occurred in the fourth quarter of 2021 and qualitative factors applied in the determination of the allowance. The portion of the current year's $45.6 million credit to the provision that was the related to the improvement in the economic forecasts amounted to approximately $67.0 million, which was partially offset by the adjustments to qualitative factors related to the Company's exposure to certain higher risk industries in the total amount of approximately $19.6 million. 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 by the negative projected impact of COVID-19 and the initial allowance recognized on acquired Revere non-purchased credit deteriorated loans. The portion of the $85.7 million provision for 2020 directly attributable to the significant deterioration in the economic forecast amounted to approximately $44.1 million. In addition, the initial allowance for credit losses on Revere’s acquired non-PCD loans was recognized through provision for credit losses in the amount of $17.5 million. The remainder of the 2020 provision reflected the impact of changes in interest rates, existing terms, qualitative factors, portfolio composition and portfolio maturities. The acquisition of Revere’s PCD loans resulted in an initial increase to the allowance for credit losses of $18.6 million, which did not affect the provision expense for 2020.

At December 31, 2021, the allowance for credit losses was $109.1 million as compared to $165.4 million at December 31, 2020. The allowance for credit losses as a percent of total loans was 1.10% and 1.59% at December 31, 2021 and December 31, 2020, respectively. The allowance for credit losses represented 224% of non-performing loans at December 31, 2021 as compared to 143% at December 31, 2020. At December 31, 2021 the allowance attributable to the commercial portfolio represented 1.20% of total commercial loans while the portion attributable to total combined consumer and mortgage loans was 0.55%, compared to 1.70% and 1.05%, respectively, at December 31, 2020. At the end of the current year, with respect to the total commercial portion of the allowance, 45% of this portion is allocated to the investor real estate loan portfolio, resulting in the ratio of the allowance for investor real estate loans to total investor real estate loans of 1.09%. A similar ratio with respect to AD&C loans was 1.87% and 1.56% for commercial business loans at the end of the current year. Excluding the PPP loans, which do not have an associated allowance, the allowance for credit losses as a percentage of total loans outstanding would be 1.12% and the ratio of the allowance for commercial business loans to total commercial business loans would be 1.78%.

The current methodology for assessing the appropriate allowance includes: (1) a collective quantified reserve that reflects the Company’s historical default and loss experience adjusted for expected economic conditions over a reasonable and supportable forecast period and the Company’s prepayment and curtailment rates, (2) collective qualitative factors that consider the expected impact of certain qualitative factors not fully captured in the collective quantitative reserve, including concentrations of the loan portfolio, expected changes to the economic forecasts, large lending relationships, early delinquencies, and factors related to credit

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administration, including, among others, loan-to-value ratios, borrowers’ risk rating and credit score migrations, and (3) individual allowances on collateral-dependent loans where borrowers are experiencing financial difficulty or where the Company determined that foreclosure is probable. Under the current methodology, the impact of the utilization of the historical default and loss experience results in 57% of the total allowance being attributable to the historical performance of the portfolio while 43% of the allowance is attributable to the collective qualitative factors applied to determine the allowance at December 31, 2021. At the end of the previous year, the utilization of the historical default and loss experience resulted in 84% of the total allowance being attributable to the historical performance of the portfolio while 16% of the allowance was attributable to the collective qualitative factors applied to determine the allowance. The decrease in the quantitative allocation of the allowance during the current year is a direct result of the continued improvement in the forecasted economic metrics, predominantly the projected decline in unemployment rate, applied in the determination of the allowance. The increase in the qualitative allocation of the allowance was the result of increased consideration of expected losses due to the concentration of portfolio risk in certain industries, in addition to the potential economic impact of a recession in the future.

The quantified collective portion of the allowance is determined by pooling loans into segments based on the similar risk characteristics of the underlying borrowers, in addition to consideration of collateral type, industry and business purpose of the loans. The Company selected two collective methodologies, the discounted cash flows and weighted average remaining life methodologies. Segments utilizing the discounted cash flow method are further sub-segmented based on the risk level (determined either by internal risk ratings or Beacon Scores). Collective calculation methodologies use the Company’s historical default and loss experience adjusted for economic forecasts. The reasonable and supportable forecast period represents a two year economic outlook for the applicable economic variables. Following the end of the reasonable and supportable forecast period expected losses revert back to the historical mean over the next two years on a straight-line basis.

Economic variables which have the most significant impact on the allowance include:

•unemployment rate;

•number of business bankruptcies; and

•house price index.

The collective quantified component of the allowance is supplemented by a qualitative component to address various risk characteristics of the Company’s loan portfolio including:

•trends in early delinquencies;

•changes in the risk profile related to large loans in the portfolio;

•concentrations of loans to specific industry segments;

•expected changes in economic conditions;

•changes in the Company’s credit administration and loan portfolio management processes; and

•the quality of the Company’s credit risk identification processes.

The individual reserve assessment is applied to collateral dependent loans where borrowers are experiencing financial difficulty or when the Company determined that foreclosure is probable. The determination of the fair value of the collateral depends on whether a repayment of the loan is expected to be from the sale or the operation of the collateral. When repayment is expected from the operation of the collateral, the Company uses the present value of expected cash flows from the operation of the collateral as the fair value. When repayment of the loan is expected from the sale of the collateral the fair value of the collateral is based on an observable market price or the appraised value less estimated cost to sell. During the individual reserve assessment, management also considers the potential future changes in the value of the collateral over the remainder of the loan’s life. The balance of collateral-dependent loans individually assessed for the allowance was $33.5 million, with individual allowances of $6.6 million against those loans at December 31, 2021.

If an updated appraisal is received subsequent to the preliminary determination of an individual allowance or partial charge-off, and it is less than the initial appraisal used in the initial assessment, an additional individual allowance or charge-off is taken on the related credit. Partially charged-off loans are not written back up based on updated appraisals and always remain on non-accrual with any and all subsequent payments first applied to the remaining balance of the loan as principal reductions. No interest income is recognized on loans that have been partially charged-off.

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A current appraisal on large loans is usually obtained if the appraisal on file is more than 12 months old and there has been a material change in market conditions, zoning, physical use or the appropriateness of the collateral based on an internal evaluation. The Company’s policy is to strictly adhere to regulatory appraisal standards. If an appraisal is ordered, no more than a 30 day turnaround is requested from the appraiser, who is selected by Credit Administration from an approved appraiser list. After receipt of the updated appraisal, the assigned credit officer will recommend to the Chief Credit Officer whether an individual allowance or a charge-off should be taken. The Chief Credit Officer has the authority to approve an individual allowance or charge-off between monthly credit committee meetings to ensure that there are no significant time lapses during this process. The Company's borrowers are concentrated in nine counties in Maryland, three counties in Virginia and in Washington D.C. Excluding the PPP loans, commercial and residential mortgages, including home equity loans and lines, represented 86% of total loans at December 31, 2021 and 88% of total loans at December 31, 2020. Certain loan terms may create concentrations of credit risk and increase the Company’s exposure to loss. These include terms that permit the deferral of principal payments or payments that are smaller than normal interest accruals (negative amortization); loans with high loan-to-value ratios; loans, such as option adjustable-rate mortgages, that may expose the borrower to future increases in repayments that are in excess of increases that would result solely from increases in market interest rates; and interest-only loans. The Company does not make loans that provide for negative amortization or option adjustable-rate mortgages.

The following table presents an allocation of the allowance for credit losses by portfolio as of each period end. The allowance is allocated in the following table to various loan categories based on the methodology used to estimate credit losses; however, the allocation does not restrict the usage of the allowance for any specific loan category.

	December 31,
(In thousands)	2021				2020
Commercial real estate:	Amount		% of loans to total loans		Amount		% of loans to total loans
Commercial investor real estate	$	45,289	41.5	%	$	57,404	34.9	%
Commercial owner-occupied real estate	11,687		17.0		20,061		15.8
Commercial AD&C	20,322		10.9		22,157		10.1
Commercial business	23,170		14.9		46,806		21.8
Total commercial	100,468		84.3		146,428		82.6
Residential real estate:
Residential mortgage	5,384		9.4		11,295		10.6
Residential construction	1,048		2.0		1,502		1.8
Consumer	2,245		4.3		6,142		5.0
Total residential and consumer	8,677		15.7		18,939		17.4
Total allowance	$	109,145	100.0	%	$	165,367	100.0	%

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Summary of Credit Loss Experience

The following table presents the activity in the allowance for credit losses for the periods indicated:

	Year Ended December 31,
(Dollars in thousands)	2021			2020
Balance, January 1	$	165,367		$	56,132
Initial allowance on PCD loans at adoption of ASC 326	—			2,762
Transition impact of adopting ASC 326	—			2,983
Initial allowance on Revere PCD loans	—			18,628
Provision for credit losses	(45,556)			85,669
Loan charge-offs:
Commercial real estate:
Commercial investor real estate	(5,802)			(411)
Commercial owner-occupied real estate	(136)			—
Commercial AD&C	(2,007)			—
Commercial business	(4,069)			(491)
Residential real estate:
Residential mortgage	—			(484)
Residential construction	—			—
Consumer	(299)			(433)
Total charge-offs	(12,313)			(1,819)
Loan recoveries:
Commercial real estate:
Commercial investor real estate	285			15
Commercial owner-occupied real estate	—			—
Commercial AD&C	—			—
Commercial business	565			702
Residential real estate:
Residential mortgage	410			105
Residential construction	5			6
Consumer	382			184
Total recoveries	1,647			1,012
Net charge-offs	(10,666)			(807)
Balance, period end	$	109,145		$	165,367
Net charge-offs to average loans	0.11		%	0.01		%
Allowance to total loans	1.10		%	1.59		%

Market Risk Management

The Company's net income is largely dependent on its net interest income. Net interest income is susceptible to interest rate risk to the extent that interest-bearing liabilities mature or re-price on a different basis than interest-earning assets. When interest-bearing liabilities mature or re-price more quickly than interest-earning assets in a given period, a significant increase in market rates of interest could adversely affect net interest income. Similarly, when interest-earning assets mature or re-price more quickly than interest-bearing liabilities, falling interest rates could result in a decrease in net interest income. Net interest income is also affected by changes in the portion of interest-earning assets that are funded by interest-bearing liabilities rather than by other sources of funds, such as noninterest-bearing deposits and stockholders' equity.

The Company’s interest rate risk management goals are (1) to increase net interest income at a growth rate consistent with the growth rate of total assets, and (2) to minimize fluctuations in net interest income as a percentage of interest-earning assets. Management attempts to achieve these goals by balancing, within policy limits, the volume of floating-rate liabilities with a similar volume of

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floating-rate assets; by keeping the average maturity of fixed-rate asset and liability contracts reasonably matched; by maintaining a pool of administered core deposits; and by adjusting pricing rates to market conditions on a continuing basis.

The Company’s board of directors has established a comprehensive interest rate risk management policy, which is administered by management’s Asset/Liability Committee (“ALCO”). The policy establishes limits on risk, which are quantitative measures of the percentage change in net interest income (a measure of net interest income at risk) and the fair value of equity capital (a measure of economic value of equity or “EVE” at risk) resulting from a hypothetical change in U.S. Treasury interest rates for maturities from one day to thirty years. The Company measures the potential adverse impacts that changing interest rates may have on its short-term earnings, long-term value, and liquidity by employing simulation analysis through the use of computer modeling. The simulation model captures optional factors such as call features and interest rate caps and floors embedded in investment and loan portfolio contracts. As with any method of gauging interest rate risk, there are certain shortcomings inherent in the interest rate modeling methodology used by the Company. When interest rates change, actual movements in different categories of interest-earning assets and interest-bearing liabilities, loan prepayments, and withdrawals of time and other deposits, may deviate significantly from assumptions used in the model. As an example, certain money market deposit accounts are assumed to reprice at 40% to 100% of the interest rate change in each of the up rate shock scenarios even though this is not a contractual requirement. As a practical matter, management would likely lag the impact of any upward movement in market rates on these accounts as a mechanism to manage the Bank’s net interest margin. Finally, the methodology does not measure or reflect the impact that higher rates may have on adjustable-rate loan customers’ ability to service their debts, or the impact of rate changes on demand for loan, lease, and deposit products.

The Company prepares a current base case and eight alternative simulations at least once per quarter and reports the analysis to the board of directors. In addition, more frequent forecasts are produced when interest rates are particularly uncertain or when other business conditions so dictate. The statement of condition is subject to quarterly testing for eight alternative interest rate shock possibilities to indicate the inherent interest rate risk. Projected interest rates are shocked by +/- 100, 200, 300, and 400 basis points (“bp”), although the Company may elect not to use particular scenarios that it determines are impractical in a current rate environment. It is management’s goal to structure the balance sheet so that net interest earnings at risk over a twelve-month period and the economic value of equity at risk do not exceed policy guidelines at the various interest rate shock levels.

The Company augments its quarterly interest rate shock analysis with alternative external interest rate scenarios on a monthly basis. These alternative interest rate scenarios may include non-parallel rate ramps and non-parallel yield curve twists. If a measure of risk produced by the alternative simulations of the entire statement of condition violates policy guidelines, ALCO is required to develop a plan to restore the measure of risk to a level that complies with policy limits within two quarters.

Measures of net interest income at risk produced by simulation analysis are indicators of an institution’s short-term performance in alternative rate environments. These measures are typically based upon a relatively brief period, usually one year. They do not necessarily indicate the long-term prospects or economic value of the institution.

Estimated Changes in Net Interest Income
Change in Interest Rates:	+ 400 bp	+ 300 bp	+ 200 bp	+ 100 bp	- 100bp	- 200 bp	- 300bp	- 400bp
Policy Limit	23.50%	17.50%	15.00%	10.00%	10.00%	15.00%	17.50%	23.50%
December 31, 2021	8.61%	6.53%	4.80%	2.16%	N/A	N/A	N/A	N/A
December 31, 2020	3.94%	2.90%	2.14%	0.85%	N/A	N/A	N/A	N/A

As shown above, measures of net interest income at risk at December 31, 2021 had declined in every rising interest rate change scenario from December 31, 2020. All measures remained well within prescribed policy limits. As indicated in the table, in a rising interest rate environment, net interest income sensitivity increased compared to the prior year-end as a result of the increase in asset sensitivity. This increase was driven by the combined impact of an increase in interest-bearing deposits at banks and the significant reduction in borrowings at December 31, 2021 as compared to the prior year end.

The measures of equity value at risk indicate the ongoing economic value of the Company by considering the effects of changes in interest rates on all of the Company’s cash flows, and by discounting the cash flows to estimate the present value of assets and liabilities. The difference between these discounted values of the assets and liabilities is the economic value of equity, which, in theory, approximates the fair value of the Company's net assets.

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Estimated Changes in Economic Value of Equity
Change in Interest Rates:	+ 400 bp	+ 300 bp	+ 200 bp	+ 100 bp	- 100 bp	- 200 bp	- 300 bp	- 400 bp
Policy Limit	35.00%	25.00%	20.00%	10.00%	10.00%	20.00%	25.00%	35.00%
December 31, 2021	(10.29%)	(6.18%)	(2.16%)	0.05%	N/A	N/A	N/A	N/A
December 31, 2020	(10.98%)	(6.27%)	(1.90%)	0.33%	N/A	N/A	N/A	N/A

Overall, the measure of the economic value of equity ("EVE") at risk remained relatively stable from December 31, 2020 to December 31, 2021. The stability of EVE through all interest rate scenarios was the result of the positive impact from the growth in demand deposits, increased money market savings accounts and the significant reductions in borrowings being substantially mitigated by the growth in fixed rate loan portfolio and a reduction in the variable rate loan portfolio.

LIBOR Transition

The Company has certain loans, interest rate swap agreements and debt obligations whose interest rates are indexed to the London InterBank Offered Rate (LIBOR). On March 5, 2021, LIBOR’s regulator, the Financial Conduct Authority, and administrator, ICE Benchmark Administration, Limited, announced that the publication of the one-week and two-month USD LIBOR maturities and non-USD LIBOR maturities will cease immediately after December 31, 2021, with the remaining USD LIBOR maturities ceasing immediately after June 30, 2023. In response to this timing, the Company has ceased utilizing LIBOR in the pricing of its offered credit products as of December 31, 2021. The Company has updated its systems and is able to offer products that utilize SOFR, AMERIBOR and other alternative reference rates. At December 31, 2021, the Company had approximately 1,200 loans totaling $1.6 billion indexed to LIBOR that will mature after June 30, 2023, of which 844 loans totaling $468.2 million are adjustable-rate mortgage loans. The Company is developing communication and transition plans to convert its LIBOR-based loans to alternative reference rates.

The Company currently has $175.0 million in fixed to floating rate subordinated debenture notes that bear a fixed rate through November 14, 2024. Beginning November 15, 2024, the interest rate was to shift to a floating rate based on three-month LIBOR plus 262 basis points through the remaining maturity or early redemption of the notes. The note indenture contains robust fallback language that allows for an appropriate alternative benchmark rate to be applied to determine the overall interest rate on the notes.

Liquidity Management

Liquidity is measured by a financial institution's ability to raise funds through loan repayments, maturing investments, deposit growth, borrowed funds, capital and the sale of highly marketable assets such as investment securities and residential mortgage loans. The Company's liquidity position, considering both internal and external sources available, exceeded anticipated short-term and long-term needs at December 31, 2021. Management considers core deposits, defined to include all deposits other than brokered and outsourced deposits and certain time deposits of $250 thousand or more, to be a relatively stable funding source. Core deposits equaled 85% of total interest-earning assets at December 31, 2021. In addition, loan payments, maturities, calls and pay downs of securities, deposit growth and earnings contribute a flow of funds available to meet liquidity requirements. In assessing liquidity, management considers operating requirements, the seasonality of deposit flows, investment, loan and deposit maturities and calls, expected funding of loans and deposit withdrawals, and the market values of available-for-sale investments, so that sufficient funds are available on short notice to meet obligations as they arise and to ensure that the Company is able to pursue new business opportunities.

In addition to factors discussed above that can affect liquidity, the Company’s growth, mortgage banking activities and changes in the liquidity of the investment portfolio due to fluctuations in interest rates are also taken into consideration. Under this approach, implemented by the Funds Management Subcommittee of ALCO under formal policy guidelines, the Company’s liquidity position is measured weekly, looking forward at thirty day intervals from 30 to 360 days. The measurement is based upon the projection of funds sold or purchased position, along with ratios and trends developed to measure dependence on purchased funds and core growth. Resulting projections as of December 31, 2021, provides an indication of liquidity versus requirements that the Company utilizes to determine how it will fund loans and other earning assets.

The Company has external sources of funds that can be drawn upon when required. The main sources of external liquidity are available lines of credit with the FHLB and the Federal Reserve Bank. Based on pledged collateral, the available line of credit with the FHLB totaled $3.9 billion with no outstanding borrowings against it as of December 31, 2021. The Company also had secured lines of credit available from the Federal Reserve Bank and correspondent banks of $509.4 million at December 31, 2021 collateralized by portfolio loans. In addition, the Company had unsecured lines of credit with correspondent banks of $1.3 billion at December 31, 2021

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with no outstanding borrowings against these lines of credit. Based upon its liquidity analysis, including external sources of liquidity available, management believes the liquidity position was appropriate at December 31, 2021.

Sandy Spring Bancorp, Inc., as a standalone entity (“Bancorp”) is a separate legal entity from the Bank and must provide for its own liquidity. In addition to its operating expenses, Bancorp is responsible for paying any dividends declared to its common stockholders and interest and principal on outstanding debt. Bancorp’s primary source of income is dividends received from the Bank. The amount of dividends that the Bank may declare and pay to Bancorp in any calendar year, without the receipt of prior approval from the Federal Reserve Bank, cannot exceed net income for that year to date plus retained net income (as defined) for the preceding two calendar years. Based on this requirement, as of December 31, 2021, the Bank could have declared a dividend of $126.6 million to Bancorp. At December 31, 2021, Bancorp had liquid assets of $69.0 million.

The Company has various contractual obligations that affect its cash flows and liquidity. For information regarding material contractual obligations, please see Market Risk Management previously discussed, and Note 7 - Premises and Equipment, Note 8 - Leases, Note 11 - Borrowings, Note 14 - Pension, Profit Sharing and Other Employee Benefit Plans, Note 19 - Derivatives, Note 20 - Financial Instruments with Off-Balance Sheet Risk, and Note 22 - Fair Value in the Notes to the Consolidated Financial Statements.

Off-Balance Sheet Arrangements

With the exception of the Company’s obligations in connection with its irrevocable letters of credit and loan commitments, the Company has no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on the Company’s financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures, or capital resources, that is material to investors. Arrangements to fund credit products or guarantee financing take the form of loan commitments (including lines of credit on revolving credit structures) and letters of credit. Approval for these arrangements are obtained in the same manner as loans. Generally, cash flows, collateral value and risk assessments are considered when determining the amount and structure of credit arrangements. Commitments to extend credit are agreements to provide financing to a customer with the provision that there are no violations of any condition established in the agreement. Commitments generally have interest rates determined by current market rates, expiration dates or other termination clauses and may require payment of a fee. Lines of credit typically represent unused portions of lines of credit that were provided and remain available as long as customers comply with the requisite contractual conditions. Commitments to extend credit are evaluated, processed and/or renewed regularly on a case by case basis, as part of the credit management process. The total commitment amount or line of credit amounts do not necessarily represent future cash requirements, as it is highly unlikely that all customers would draw on their lines of credit in full at one time. For additional information on off-balance sheet arrangements, please see Note 20 - Financial Instruments with Off-Balance Sheet Risk and Note 11 - Borrowings in the Notes to the Consolidated Financial Statements, and Capital Management above.

Item 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK.

The information required by this item is incorporated by reference to Part II, Item 7 of this report.

Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

Internal Control Over Financial Reporting

As part of the Company’s program to comply with Section 404 of the Sarbanes-Oxley Act of 2002, our management assessed the effectiveness of the Company’s internal control over financial reporting as of December 31, 2021 (the “Assessment”). In making this Assessment, management used the control criteria framework of the Committee of Sponsoring Organizations (“COSO”) of the Treadway Commission published in its report entitled Internal Control— Integrated Framework (2013). Management’s Assessment included an evaluation of the design of the Company’s internal control over financial reporting and testing of the operational effectiveness of its internal control over financial reporting. Based on this assessment, the Company’s management concluded that the Company’s internal control over financial reporting was effective as of December 31, 2021.

The attestation report by the Company’s independent registered public accounting firm, Ernst & Young LLP, on the Company’s internal control over financial reporting begins on the following page.

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Report of Independent Registered Public Accounting Firm

To the Stockholders and the Board of Directors of Sandy Spring Bancorp, Inc.

Opinion on Internal Control Over Financial Reporting

We have audited Sandy Spring Bancorp, Inc. and subsidiaries’ internal control over financial reporting as of December 31, 2021, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 Framework) (the COSO criteria). In our opinion, Sandy Spring Bancorp, Inc. and subsidiaries (the Company) maintained, in all material respects, effective internal control over financial reporting as of December 31, 2021, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated statements of condition of the Company as of December 31, 2021 and 2020, the related consolidated statements of income, comprehensive income, changes in stockholders’ equity, and cash flows for each of the three years in the period ended December 31, 2021 and the related notes and our report dated February 18, 2022 expressed an unqualified opinion thereon.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.

Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control Over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ Ernst & Young LLP

Tysons, VA

February 18, 2022

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Report of Independent Registered Public Accounting Firm

To the Stockholders and the Board of Directors of Sandy Spring Bancorp, Inc.

Opinion on the Financial Statements

We have audited the accompanying consolidated statements of condition of Sandy Spring Bancorp, Inc. and subsidiaries (the “Company”) as of December 31, 2021 and 2020, the related consolidated statements of income, comprehensive income, changes in stockholders' equity and cash flows for each of the three years in the period ended December 31, 2021, and the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2021 and 2020, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2021, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2021, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated February 18, 2022 expressed an unqualified opinion thereon.

Adoption of New Accounting Standard

As discussed in Note 1 to the consolidated financial statements, the Company changed its method for accounting for credit losses in 2020.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the account or disclosure to which it relates.

68

	Allowance for credit losses
Description of the Matter	As of December 31, 2021, the Company’s loan portfolio totaled approximately $10.0 billion and the allowance for credit losses was $109.1 million. As described in Notes 1 and 6 to the consolidated financial statements, the Company estimates an allowance representing an amount, which, in management’s judgment, is appropriate to absorb the lifetime expected losses that may be sustained on outstanding loans at the balance sheet date. The Company’s methodology for estimating the allowance includes (1) a collective quantified reserve that reflects the Company’s historical default and loss experience adjusted for expected economic conditions throughout a reasonable and supportable period and the Company’s prepayment and curtailment rates, (2) collective qualitative factors that consider concentrations of the loan portfolio, expected changes to the economic forecasts, large relationships, early delinquencies, and factors related to credit administration, and (3) individual allowances on certain collateral-dependent loans. Auditing management’s estimate of the allowance involved a high degree of subjectivity due to the significant judgment required in determining the measurement of qualitative reserve related to concentrations of the loan portfolio. Management’s measurement of the qualitative reserve applied to the loan portfolio is highly judgmental and could have a significant effect on the allowance.
How We Addressed the Matter in our Audit	We obtained an understanding, evaluated the design, and tested the operating effectiveness of the Company's controls over its allowance, including controls over the review of economic forecast data and data used to determine the measurement of the qualitative factor related to concentrations of the loan portfolio. Our tests of controls included observation of certain of management committee meetings, at which key management judgements are subjected to critical challenge. To evaluate the appropriateness of the qualitative reserve, we tested the completeness and accuracy of data used in determining the qualitative reserve, including economic forecast data and internal data used to measure portfolio concentrations. We recalculated metrics used by management in the qualitative factor determination. In testing management’s measurement of the qualitative reserve, we reviewed management’s judgments about risk, such as risk in various portfolio concentrations and expected changes in economic forecasts and compared them to independently-obtained third party industry data and evaluated the corroborating or contrary evidence, as appropriate. We also evaluated the overall allowance amount and whether the amount appropriately reflects lifetime expected losses in the loan portfolio as of the consolidated balance sheet date. For example, we compared the loss experience estimated by the allowance model during the year to the Company’s actual historical loss experience. We also compared certain of the Company’s allowance ratios to the ratios of the Company’s peers and evaluated trends in the allowance compared to relevant company-specific trends.

/s/ Ernst & Young LLP

We have served as the Company’s auditor since 2013.

Tysons, VA

February 18, 2022

69

SANDY SPRING BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CONDITION

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

The accompanying notes are an integral part of these financial statements

70

SANDY SPRING BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

	Year Ended December 31,
(Dollars in thousands, except per share data)	2021		2020		2019
Interest income:
Interest and fees on loans	$	423,152	$	393,477	$	316,550
Interest on loans held for sale	1,736		1,686		1,607
Interest on deposits with banks	725		446		2,129
Interest and dividends on investment securities:
Taxable for federal income taxes	16,118		22,136		21,739
Exempt from federal income taxes	8,552		5,814		5,834
Interest on federal funds sold	1		1		10
Total interest income	450,284		423,560		347,869
Interest expense:
Interest on deposits	15,022		41,651		61,681
Interest on retail repurchase agreements and federal funds purchased	182		1,965		1,161
Interest on advances from FHLB	2,649		6,593		16,578
Interest on subordinated debt	7,913		10,192		3,141
Total interest expense	25,766		60,401		82,561
Net interest income	424,518		363,159		265,308
Provision/ (credit) for credit losses	(45,556)		85,669		4,684
Net interest income after provision/ (credit) for credit losses	470,074		277,490		260,624
Non-interest income:
Investment securities gains	212		467		77
Service charges on deposit accounts	8,241		7,066		9,692
Mortgage banking activities	24,509		40,058		14,711
Wealth management income	36,841		30,570		22,669
Insurance agency commissions	7,017		6,795		6,612
Income from bank owned life insurance	3,022		2,867		3,165
Bank card fees	6,896		5,672		5,616
Other income	15,317		9,221		8,780
Total non-interest income	102,055		102,716		71,322
Non-interest expense:
Salaries and employee benefits	155,830		134,471		103,950
Occupancy expense of premises	22,405		21,383		19,470
Equipment expenses	12,883		12,224		10,720
Marketing	4,730		4,281		4,456
Outside data services	8,983		8,759		7,567
FDIC insurance	4,294		4,727		2,260
Amortization of intangible assets	6,600		6,221		1,946
Merger and acquisition expense	45		25,174		1,312
Professional fees and services	10,308		7,939		6,978
Other expenses	34,392		30,603		20,426
Total non-interest expense	260,470		255,782		179,085
Income before income tax expense	311,659		124,424		152,861
Income tax expense	76,552		27,471		36,428
Net income	$	235,107	$	96,953	$	116,433
Net income per common share amounts:
Basic net income per common share	$	5.00	$	2.19	$	3.25
Diluted net income per common share	$	4.98	$	2.18	$	3.25
Dividends declared per share	$	1.28	$	1.20	$	1.18

The accompanying notes are an integral part of these financial statements

71

SANDY SPRING BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

	Year Ended December 31,
(In thousands)	2021		2020		2019
Net income	$	235,107	$	96,953	$	116,433
Other comprehensive income/ (loss):
Investments available-for-sale:
Net change in unrealized gains/ (losses) on investments available-for-sale	(38,104)		32,950		14,429
Related income tax expense/ (benefit)	9,751		(8,428)		(3,742)
Net investment gains reclassified into earnings	(212)		(467)		(77)
Related income tax expense	54		120		20
Net effect on other comprehensive income/ (loss)	(28,511)		24,175		10,630
Defined benefit pension plan:
Net change of unrealized (gain)/ loss	1,687		(1,542)		1,175
Related income tax expense/ (benefit)	(420)		404		(383)
Net effect on other comprehensive income/ (loss)	1,267		(1,138)		792
Total other comprehensive income/ (loss)	(27,244)		23,037		11,422
Comprehensive income	$	207,863	$	119,990	$	127,855

The accompanying notes are an integral part of these financial statements

72

SANDY SPRING BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY

` (Dollars in thousands, except per share data)	Common Stock		Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Income/ (Loss)		Total Stockholders’ Equity
Balances at January 1, 2019	$	35,531	$	606,573	$	441,553	$	(15,754)	$	1,067,903
Net income	—		—		116,433		—		116,433
Other comprehensive income, net of tax	—		—		—		11,422		11,422
Total other comprehensive income									127,855
Common stock dividends $1.18 per share	—		—		(42,272)		—		(42,272)
Stock compensation expense	—		3,042		—		—		3,042
Common stock issued pursuant to:
Stock option plan - 15,080 shares	15		319		—		—		334
Directors stock purchase plan - 867 shares	1		29		—		—		30
Employee stock purchase plan - 37,091 shares	37		1,032		—		—		1,069
Restricted stock vesting, net of tax withholding - 54,789 shares	54		(757)		—		—		(703)
Repurchase of common stock - 668,191 shares	(668)		(23,616)		—		—		(24,284)
Balances at December 31, 2019	34,970		586,622		515,714		(4,332)		1,132,974
Net income	—		—		96,953		—		96,953
Other comprehensive income, net of tax	—		—		—		23,037		23,037
Total other comprehensive income									119,990
Common stock dividends $1.20 per share	—		—		(53,175)		—		(53,175)
Stock compensation expense	—		3,850		—		—		3,850
Common stock issued pursuant to:
Revere Bank acquisition - 12,768,949 shares	12,769		276,320		—		—		289,089
Stock option plan - 26,063 shares	27		289		—		—		316
Conversion of Revere stock options - 395,298 options	—		3,611		—		—		3,611
Employee stock purchase plan - 65,337 shares	65		1,616		—		—		1,681
Restricted stock vesting, net of tax withholding - 46,386 shares	46		(504)		—		—		(458)
Adoption of ASC 326 - Financial Instruments - Credit Losses	—		—		(2,221)		—		(2,221)
Repurchase of common stock - 820,328 shares	(820)		(24,882)		—		—		(25,702)
Balances at December 31, 2020	47,057		846,922		557,271		18,705		1,469,955
Net income	—		—		235,107		—		235,107
Other comprehensive loss, net of tax	—		—		—		(27,244)		(27,244)
Total other comprehensive income									207,863
Common stock dividends $1.28 per share	—		—		(60,351)		—		(60,351)
Stock compensation expense	—		5,299		—		—		5,299
Common stock issued pursuant to:
Stock option plan - 270,297 shares	270		3,424		—		—		3,694
Employee stock purchase plan - 60,018 shares	60		2,004		—		—		2,064
Restricted stock vesting, net of tax withholding - 81,838 shares	82		(1,659)		—		—		(1,577)
Repurchase of common stock - 2,350,000 shares	(2,350)		(104,918)		—		—		(107,268)
Balances at December 31, 2021	$	45,119	$	751,072	$	732,027	$	(8,539)	$	1,519,679

The accompanying notes are an integral part of these financial statements

73

SANDY SPRING BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

	Year Ended December 31,
(Dollars in thousands)	2021		2020		2019
Operating activities:
Net income	$	235,107	$	96,953	$	116,433
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	14,522		19,873		13,398
Provision/ (credit) for credit losses	(45,556)		85,669		4,684
Share based compensation expense	5,299		3,850		3,042
Deferred income tax / (benefit)	12,255		(29,568)		1,719
Origination of loans held for sale	(1,385,664)		(1,576,865)		(887,216)
Proceeds from sales of loans held for sale	1,456,110		1,585,690		869,294
Gains on sales of loans held for sale	(31,561)		(33,418)		(13,006)
Losses on sale of other real estate owned	241		32		173
Investment securities gains	(212)		(467)		(77)
Loss on sales of premises and equipment	—		—		269
Tax (benefit)/ expense associated with share based compensation	(1,850)		(133)		92
Net (increase)/ decrease in accrued interest receivable	12,082		(15,499)		1,327
Net (increase)/ decrease other assets	(35,498)		1,500		(3,664)
Net increase/ (decrease) accrued expenses and other liabilities	(20,771)		1,704		(5,804)
Other, net	1,894		2,660		(721)
Net cash provided by operating activities	216,398		141,981		99,943
Investing activities:
Sales/ (purchases) of equity securities	24,594		(3,553)		21,586
Purchases of investments available-for-sale	(933,491)		(633,741)		(326,604)
Proceeds from sales of investment available-for-sale	400,567		121,357		2,926
Proceeds from maturities, calls and principal payments of investments available-for-sale	369,678		441,672		199,652
Net (increase)/ decrease in loans	457,724		(1,174,467)		(134,012)
Proceeds from the sales of other real estate owned	680		60		324
Cash paid for the acquisition of business activity of RPJ, net of cash acquired	—		(26,925)		—
Cash acquired in the acquisition of business activity of Revere Bank, net of cash paid	—		80,442		—
Expenditures for premises and equipment	(11,491)		(5,041)		(5,148)
Net cash provided by/ (used in) investing activities	308,261		(1,200,196)		(241,276)
Financing activities:
Net increase in deposits	595,942		1,270,328		525,439
Net increase/ (decrease) in in retail repurchase agreements and federal funds purchased	(402,071)		329,552		(113,824)
Proceeds from advances from borrowings	—		400,000		2,298,000
Repayment of advances from borrowings	(379,075)		(703,117)		(2,457,834)
Retirement of subordinated debt	(53,000)		(10,310)		—
Proceeds from issuance of common stock	5,758		1,997		1,433
Stock tendered for payment of withholding taxes	(1,577)		(458)		(703)
Repurchase of Common Stock	(107,268)		(25,702)		(24,284)
Dividends paid	(60,351)		(53,175)		(42,272)
Net cash provided by/ (used in) financing activities	(401,642)		1,209,115		185,955
Net increase in cash and cash equivalents	123,017		150,900		44,622
Cash and cash equivalents at beginning of year	297,003		146,103		101,481
Cash and cash equivalents at end of year	$	420,020	$	297,003	$	146,103
Supplemental Disclosures:
Interest payments	$	37,847	$	62,637	$	84,448
Income tax payments, net of refunds of $2,673 in 2021	71,908		56,430		33,795
Transfers from loans to other real estate owned	257		70		414

The accompanying notes are an integral part of these financial statements

74

SANDY SPRING BANCORP, INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES

Nature of Operations

Sandy Spring Bancorp, Inc. ("Sandy Spring" or, together with its subsidiaries, the "Company"), a Maryland corporation, is the bank holding company for Sandy Spring Bank (the “Bank”), which conducts a full-service commercial banking, mortgage banking and trust business. Services to individuals and businesses include accepting deposits, extending credit to buy real estate or equipment, consumer and commercial loans and lines of credit, general insurance, personal trust, and investment and wealth management services. The Company operates in central Maryland, Northern Virginia, and the greater Washington D.C. market. The Company offers investment and wealth management services through the Bank’s subsidiaries, West Financial Services ("West Financial") and Rembert Pendleton Jackson ("RPJ"). Insurance products are available to clients through Sandy Spring Insurance Corporation ("Sandy Spring Insurance"), and Neff & Associates, which are agencies of Sandy Spring Insurance.

Basis of Presentation

The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (“GAAP”) and prevailing practices within the financial services industry for financial information. The following summary of significant accounting policies of the Company is presented to assist the reader in understanding the financial and other data presented in this report. The Company has evaluated subsequent events through the date of the issuance of its financial statements.

Principles of Consolidation

The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, Sandy Spring Bank and its subsidiaries, Sandy Spring Insurance, West Financial and RPJ. Consolidation has resulted in the elimination of all significant intercompany accounts and transactions. See Note 25 for more information on the Company's segments and consolidation.

Use of Estimates

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, in addition to affecting the reported amounts of revenues earned and expenses incurred during the reporting period. Actual results could differ from those estimates. Estimates that could change significantly relate to the provision for credit losses and the related allowance, potential impairment of goodwill or other intangible assets, valuation of investment securities and the determination of whether available-for-sale debt securities with fair values less than amortized costs are impaired and require an allowance for credit losses, valuation of other real estate owned, valuation of share based compensation, the assessment that a liability should be recognized with respect to any matters under litigation, the calculation of current and deferred income taxes, and the actuarial projections related to pension expense and the related liability.

Assets Under Management

Assets held for others under fiduciary and agency relationships are not assets of the Company or its subsidiaries and are not included in the accompanying Consolidated Statements of Condition. Trust department income and investment management fees are presented on an accrual basis.

Cash Flows

For purposes of reporting cash flows, cash and cash equivalents include cash and due from banks, federal funds sold and interest-bearing deposits with banks (items with an original maturity of three months or less).

Revenue from Contracts with Customers

The Company’s revenue includes net interest income on financial instruments and non-interest income. Specific categories of revenue are presented in the Consolidated Statements of Income. Most of the Company’s revenue is not within the scope of Accounting Standard Codification (“ASC”) 606 – Revenue from Contracts with Customers. For revenue within the scope of ASC 606, the Company provides services to customers and has related performance obligations. The revenue from such services is recognized upon satisfaction of all contractual performance obligations. The following discusses key revenue streams within the scope of revenue recognition guidance.

75

Wealth Management Income

West Financial and RPJ provide comprehensive investment management and financial planning services. Wealth management income is comprised of income for providing trust, estate and investment management services. Trust services include acting as a trustee for corporate or personal trusts. Investment management services include investment management, record-keeping and reporting of security portfolios. Fees for these services are recognized based on a contractually-agreed fixed percentage applied to net assets under management at the end of each reporting period. The Company does not charge/recognize any performance-based fees.

Insurance Agency Commissions

Sandy Spring Insurance, a subsidiary of the Bank, performs the function of an insurance intermediary by introducing the policyholder and insurer and is compensated by a commission fee for placement of an insurance policy. Sandy Spring Insurance does not provide any captive management services or any claim handling services. Commission fees are set as a percentage of the premium for the insurance policy for which Sandy Spring Insurance is a producer. Sandy Spring Insurance recognizes revenue when the insurance policy has been contractually agreed to by the insurer and policyholder (at transaction date).

Service Charges on Deposit Accounts

Service charges on deposit accounts are earned on depository accounts for consumer and commercial account holders and include fees for account and overdraft services. Account services include fees for event-driven services and periodic account maintenance activities. An obligation for event-driven services is satisfied at the time of the event when service is delivered and revenue recognized as earned. Obligation for maintenance activities is satisfied over the course of each month and revenue is recognized at month end. The overdraft services obligation is satisfied at the time of the overdraft and revenue is recognized as earned.

Residential Mortgage Loans Held for Sale

The Company engages in sales of residential mortgage loans originated by the Bank. Loans held for sale are carried at fair value. Fair value is derived from secondary market quotations for similar instruments. The Company measures residential mortgage loans at fair value when the Company first recognizes the loan (i.e., the fair value option). Changes in fair value of these loans are recorded in earnings as a component of mortgage banking activities in non-interest income in the Consolidated Statements of Income. The Company's current practice is to sell the majority of such loans on a servicing released basis. Any retained servicing assets are amortized in proportion to their net servicing fee income over the life of the respective loans. Servicing assets are evaluated for impairment on a periodic basis.

Investments Available-for-Sale

Debt securities not classified as held-to-maturity or trading are classified as securities available-for-sale. Securities available-for-sale are acquired as part of the Company's asset/liability management strategy and may be sold in response to changes in interest rates, loan demand, changes in prepayment risk or other factors. Securities available-for-sale are carried at fair value, with unrealized gains or losses based on the difference between amortized cost and fair value, reported net of deferred tax, as accumulated other comprehensive income/ (loss), a separate component of stockholders' equity. The carrying values of securities available-for-sale are adjusted for premium amortization and discount accretion. Premium is amortized to the earliest call date and discount accreted to the maturity date using the effective interest method. Realized gains and losses on security sales or maturities, using the specific identification method, are included as a separate component of non-interest income. Related interest and dividends are included in interest income. Declines in the fair value of individual available-for-sale securities below their amortized cost due to credit-related factors are recognized as an allowance for credit losses. Credit-related factors affecting the determination of whether impairment has occurred include a downgrading of the security below investment grade by a rating agency or due to potential default, a significant deterioration in the financial condition of the issuer, increase in entity-specific credit spreads. Additionally, on any available-for-sale securities with unrealized losses, the Company evaluates its intent and ability to hold the investment for a period of time sufficient to allow for any anticipated recovery in fair value.

Equity Securities

Equity securities include Federal Reserve Bank stock, Federal Home Loan Bank of Atlanta ("FHLB") stock and other equities that are considered restricted as to marketability and recorded at cost. As these securities do not have readily available market values, they are carried at cost and adjusted for any necessary impairments each reporting period.

76

Loan Financing Receivables

The Company’s financing receivables consist primarily of loans that are stated at their principal balance outstanding, net of any unearned income, acquisition fair value marks and deferred loan origination fees and costs. Interest income on loans is accrued at the contractual rate based on the principal balance outstanding. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the interest method.

Loans are considered past due or delinquent when the principal or interest due in accordance with the contractual terms of the loan agreement or any portion thereof remains unpaid after the due date of the scheduled payment. Immaterial shortfalls in payment amounts do not necessarily result in a loan being considered delinquent or past due. If any payments are past due and subsequent payments are resumed without payment of the delinquent amount, the loan shall continue to be considered past due. Whenever any loan is reported delinquent on a principal or interest payment or portion thereof, the amount reported as delinquent is the outstanding principal balance of the loan.

Loans, except for consumer installment loans, are placed into non-accrual status when any portion of the loan principal or interest becomes 90 days past due. Management may determine that certain circumstances warrant earlier discontinuance of interest accruals on specific loans if an evaluation of other relevant factors (such as bankruptcy, interruption of cash flows, etc.) indicates collection of amounts contractually due is unlikely. These loans are considered, collectively, to be non-performing loans. Consumer installment loans that are not secured by real estate are not placed on non-accrual, but are charged down to their net realizable value when they are four months past due. Loans designated as non-accrual have all previously accrued but unpaid interest reversed. Interest income is not recognized on non-accrual loans. All payments received on non-accrual loans are applied using a cost-recovery method to reduce the outstanding principal balance until the loan returns to accrual status. Loans may be returned to accrual status when all principal and interest amounts contractually due are brought current and future payments are reasonably assured.

Loans considered to be TDRs are loans that have their terms restructured (e.g., interest rates, loan maturity date, payment and amortization period, etc.) in circumstances that provide payment relief to a borrower experiencing financial difficulty. All restructured collateral-dependent loans are individually assessed for allowance for credit losses and may either be in accruing or non-accruing status. Non-accruing restructured loans may return to accruing status provided doubt has been removed concerning the collectability of principal and interest as evidenced by a sufficient period of payment performance in accordance with the restructured terms. Loans may be removed from the restructured category if the borrower is no longer experiencing financial difficulty, a re-underwriting event took place, and the revised loan terms of the subsequent restructuring agreement are considered to be consistent with terms that can be obtained in the market for loans with comparable credit risk.

Allowance for Credit Losses

On January 1, 2020, the Company adopted the provisions of ASU No. 2016-13, Current Expected Credit Losses. The allowance for credit losses (“allowance” or “ACL”) represents an amount which, in management's judgment, reflects the lifetime expected losses that may be sustained on outstanding loans at the balance sheet date based on the evaluation of the size and current risk characteristics of the loan portfolio, past events, current conditions, reasonable and supportable forecasts of future economic conditions and prepayment experience. The allowance is measured and recorded upon the initial recognition of a financial asset. The allowance is reduced by charge-offs, net of recoveries of previous losses, and is increased or decreased by a provision or credit for credit losses, which is recorded as a current period expense.

Determination of the appropriateness of the allowance is inherently complex and requires the use of significant and highly subjective estimates. The reasonableness of the allowance is reviewed periodically by the Risk Committee of the Board of Directors and formally approved quarterly by that same committee of the Board.

The Company’s methodology for estimating the allowance includes: (1) a collective quantified reserve that reflects the Company’s historical default and loss experience adjusted for expected economic conditions throughout a reasonable and supportable period and the Company’s prepayment and curtailment rates; (2) collective qualitative factors that consider the expected impact of certain factors not fully captured in the collective quantified reserve, including concentrations of the loan portfolio, expected changes to the economic forecasts, large relationships, early delinquencies, and factors related to credit administration, including, among others, loan-to-value ratios, borrowers’ risk rating and credit score migrations; and (3) individual allowances on collateral-dependent loans where borrowers are experiencing financial difficulty or when the Company determines that the foreclosure is probable. The Company excludes accrued interest from the measurement of the allowance as the Company has a non-accrual policy to reverse any accrued, uncollected interest income as loans are moved to non-accrual status.

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Loans are pooled into segments based on the similar risk characteristics of the underlying borrowers, in addition to consideration of collateral type, industry and business purpose of the loans. Portfolio segments used to estimate the allowance are the same as portfolio segments used for general credit risk management purposes. Refer to Note 5 for more details on the Company’s portfolio segments.

The Company applies two calculation methodologies to estimate the collective quantified component of the allowance: discounted cash flows method and weighted average remaining life method. Allowance estimates on commercial acquisition, development and construction (“AD&C”) and residential construction segments are based on the weighted average remaining life method. Allowance estimates on all other portfolio segments are based on the discounted cash flows method. Segments utilizing the discounted cash flows method are further sub-segmented into risk level pools, determined either by risk rating for commercial loans or Beacon Scores ranges for residential and consumer loans. To better manage risk and reasonably determine the sufficiency of reserves, this segregation allows the Company to monitor the allowance component applicable to higher risk loans separate from the remainder of the portfolio. Collective calculation methodologies utilize the Company’s historical default and loss experience adjusted for future economic forecasts. The reasonable and supportable forecast period represents a two-year economic outlook for the applicable economic variables. Following the end of the reasonable and supportable forecast period expected losses revert back to the historical mean over the next two years on a straight-line basis. Economic variables that have the most significant impact on the allowance include: unemployment rate, house price index and business bankruptcies. Contractual loan level cash flows within the discounted cash flows methodology are adjusted for the Company’s historical prepayment and curtailment rate experience.

The individual reserve assessment is applied to collateral dependent loans where borrowers are experiencing financial difficulty or when the Company determines that a foreclosure is probable. The determination of the fair value of the collateral depends on whether a repayment of the loan is expected to be from the sale or the operation of the collateral. When a repayment is expected from the operation of the collateral, the Company uses the present value of expected cash flows from the operation of the collateral as the fair value. When the repayment of the loan is expected from the sale of the collateral the fair value of the collateral is based on an observable market price or the collateral’s appraised value, less estimated costs to sell. Third party appraisals used in the individual reserve assessment are conducted at least annually with underlying assumptions that are reviewed by management. Third party appraisals may be obtained on a more frequent basis if deemed necessary. Internal evaluations of collateral value are conducted quarterly to ensure any further deterioration of the collateral value is recognized on a timely basis. During the individual reserve assessment, management also considers the potential future changes in the value of the collateral over the remainder of the loan’s remaining life. The Company may receive updated appraisals which contradict the preliminary determination of fair value used to establish an individual allowance on a loan. In these instances the individual allowance is adjusted to reflect the Company’s evaluation of the updated appraised fair value. In the event a loss was previously confirmed and the loan was charged down to the estimated fair value based on a previous appraisal, the balance of partially charged-off loans are not subsequently increased, but could be further decreased depending on the direction of the change in fair value. Payments on fully or partially charged-off loans are accounted for under the cost-recovery method. Under this method, all payments received are applied on a cash basis to reduce the entire outstanding principal balance, then to recognize a recovery of all previously charged-off amounts before any interest income may be recognized. Based on the individual reserve assessment, if the Company determines that the fair value of the collateral is less than the amortized cost basis of the loan, an individual allowance will be established measured as the difference between the fair value of the collateral

(less costs to sell) and the amortized cost basis of the loan. Once a loss has been confirmed, the loan is charged-down to its estimated fair value.

Large groups of smaller non-accrual homogeneous loans are not individually evaluated for allowance and include residential permanent and construction mortgages and consumer installment loans. These portfolios are reserved for on a collective basis using historical loss rates of similar loans over the weighted average life of each pool.

The Company reviews its unfunded commitments to determine if they are unconditionally cancellable by the Company. If the unfunded commitment is determined to not be unconditionally cancellable by the Company, a reserve for unfunded commitments is established. The reserve for unfunded commitments considers both the likelihood that the funding will occur and an estimate of expected credit losses over the life of the commitment.

Management believes it uses relevant information available to make determinations about the allowance and that it has established the existing allowance in accordance with GAAP. However, the determination of the allowance requires significant judgment, and estimates of expected lifetime losses in the loan portfolio can vary significantly from the amounts actually observed. While management uses available information to recognize expected losses, future additions to the allowance may be necessary based on

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changes in the loans comprising the portfolio, changes in the current and forecasted economic conditions, changes to the interest rate environment which may directly impact prepayment and curtailment rate assumptions, and changes in the financial condition of borrowers.

Acquired Loans

Loans acquired in connection with acquisitions are recorded at their acquisition-date fair value. The allowance for credit losses related to the acquired loan portfolio is not carried over. Acquired loans are classified into two categories based on the credit risk characteristics of the underlying borrowers as either purchased credit deteriorated (“PCD”) loans, or loans with no evidence of credit deterioration (“non-PCD”).

PCD loans are defined as a loan or pool of loans that have experienced more-than-insignificant credit deterioration since the origination date. The Company uses a combination of individual and pooled review approaches to determine if acquired loans are PCD. At acquisition, the Company considers a number of factors to determine if an acquired loan or pool of loans has experienced more-than-insignificant credit deterioration. These factors include:

•loans classified as non-accrual,

•loans with risk rating of special mention or worse (using the Company's risk rating scale),

•loans with multiple risk rating downgrades since origination,

•loans with evidence of being 60 days or more past due,

•loans previously modified in a troubled debt restructuring,

•loans that received an interest only or payment deferral modification, and

•loans in industries that show evidence of additional risk due to economic conditions.

The initial allowance related to PCD loans that share similar risk characteristics is established using a pooled approach. The Company uses either a discounted cash flow or weighted average remaining life method to determine the required level of the allowance. PCD loans that were classified as non-accrual as of the acquisition date and are collateral dependent are assessed for allowance on an individual basis.

For PCD loans, an initial allowance is established on the acquisition date and added to the fair value of the loan to arrive at acquisition date amortized cost. Accordingly, no provision for credit losses is recognized on PCD loans at the acquisition date. Subsequent to the acquisition date, the initial allowance on PCD loans will increase or decrease based on future evaluations, with changes recognized in the provision for credit losses.

Non-PCD loans are pooled into segments together with originated loans that share similar risk characteristics and have an allowance established on the acquisition date, which is recognized in the current period provision for credit losses.

Determining the fair value of the acquired loans involves estimating the principal and interest payment cash flows expected to be collected on the loans and discounting those cash flows at a market rate of interest. Management considers a number of factors in evaluating the acquisition-date fair value including the remaining life, interest rate profile, market interest rate environment, payment schedules, risk ratings, probability of default and loss given default, and estimated prepayment rates. For PCD loans, the non-credit discount or premium is allocated to individual loans as determined by the difference between the loan’s unpaid principal balance and amortized cost basis. The non-credit premium or discount is recognized into interest income on a level yield basis over the remaining expected life of the loan. For non-PCD loans, the fair value discount or premium is allocated to individual loans and recognized into interest income on a level yield basis over the remaining expected life of the loan.

Premises and Equipment

Premises and equipment are stated at cost, less accumulated depreciation and amortization, computed using the straight-line method. Premises and equipment are depreciated over the useful lives of the assets, which generally range from 3 to 10 years for furniture, fixtures and equipment, 3 to 5 years for computer software and hardware, and 10 to 40 years for buildings and building improvements. Leasehold improvements are amortized over the lesser of the lease term or the estimated useful lives of the improvements. The costs of major renewals and betterments are capitalized, while the costs of ordinary maintenance and repairs are included in non-interest expense.

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Leases

The Company determines if an arrangement is a lease at inception. All of the Company’s leases are currently classified as operating leases and are included in other assets and other liabilities on the Company’s Consolidated Statements of Condition. Periodic operating lease costs are recorded in occupancy expenses of premises on the Company's Consolidated Statements of Income.

Right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term, and lease liabilities represent the Company’s obligation to make lease payments arising from the lease arrangements. Operating lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of the expected future lease payments over the remaining lease term. In determining the present value of future lease payments, the Company uses its incremental borrowing rate based on the information available at the lease commencement date. The operating ROU assets are adjusted for any lease payments made at or before the lease commencement date, initial direct costs, any lease incentives received and, for acquired leases, any favorable or unfavorable fair value adjustments. The present value of the lease liability may include the impact of options to extend or terminate the lease when it is reasonably certain that the Company will exercise such options provided in the lease terms. Lease expense is recognized on a straight-line basis over the expected lease term. Lease agreements that include lease and non-lease components, such as common area maintenance charges, are accounted for separately.

Goodwill and Other Intangible Assets

Goodwill represents the excess purchase price paid over the fair value of the net assets acquired in a business combination. Goodwill is not amortized but is tested for impairment annually or more frequently if events or changes in circumstances indicate that the asset might be impaired. Impairment testing requires that the fair value of each of the Company’s reporting units be compared to the carrying amount of the reporting unit’s net assets, including goodwill. The Company’s reporting units were identified based upon an analysis of each of its individual operating segments. If the fair values of the reporting units exceed their book values, no write-down of recorded goodwill is required. If the fair value of a reporting unit is less than book value, an expense may be required to write-down the related goodwill to the proper carrying value. Any impairment would be realized through a reduction of goodwill or the intangible and an offsetting charge to non-interest expense. Annually, the Company performs an impairment test of goodwill as of October 1 of each year. During the year, any triggering event that occurs may affect goodwill and could require an impairment assessment. Determining the fair value of a reporting unit requires the Company to use a degree of subjectivity. The Company's annual impairment test of goodwill and other intangible assets did not identify any impairment. Additionally, the Company determined that there were no triggering events and as a result no evidence of impairment between the annual impairment test and December 31, 2021.

Accounting guidance provides the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. The Company assesses qualitative factors on a quarterly basis. Based on the assessment of these qualitative factors, if it is determined that it is more likely than not that the fair value of a reporting unit is not less than the carrying value, then performing the impairment process is not necessary. However, if it is determined that it is more likely than not that the carrying value exceeds the fair value a quantified analysis is required to determine whether an impairment exists.

Other intangible assets represent purchased assets that lack physical substance but can be distinguished from goodwill because of contractual or other legal rights or because the asset is capable of being sold or exchanged either on its own or in combination with a related contract, asset, or liability. Other intangible assets have finite lives and are reviewed for impairment annually. These assets are amortized over their estimated useful lives either on a straight-line or sum-of-the-years basis over varying periods that initially did not exceed 15 years.

Other Real Estate Owned

OREO is comprised of properties acquired in partial or total satisfaction of problem loans. The properties are recorded at fair value less estimated costs of disposal, on the date acquired or on the date that the Company acquires effective control over the property. Gains or losses arising at the time of acquisition of such properties are charged against the allowance for credit losses. During the holding period OREO continues to be measured at lower of cost or fair value less estimated costs of disposal, and any subsequent declines in value are expensed as incurred. Gains and losses realized from the sale of OREO, as well as valuation adjustments and expenses of operation are included in non-interest expense.

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Derivative Financial Instruments

Derivative Loan Commitments

Mortgage loan commitments are derivative loan commitments if the loan that will result from exercise of the commitment will be held for sale upon funding. Derivative loan commitments are recognized at fair value in the Consolidated Statements of Condition in other assets or other liabilities with changes in their fair values recorded as a component of mortgage banking activities in the Consolidated Statements of Income.

Mortgage loan commitments are issued to borrowers. Subsequent to commitment date, changes in the fair value of the loan commitment are recognized based on changes in the fair value of the underlying mortgage loan due to interest rate changes, changes in the probability the derivative loan commitment will be exercised, and the passage of time. In estimating fair value, a probability is assigned to a loan commitment based on an expectation that it will be exercised and the loan will be funded.

Forward Loan Sale Commitments

Loan sales agreements are evaluated to determine whether they meet the definition of a derivative as facts and circumstances may differ significantly. If agreements qualify, to protect against the price risk inherent in derivative loan commitments, the Company utilizes both “mandatory delivery” and “best efforts” forward loan sale commitments to mitigate the risk of potential decreases in the values of loans that would result from the exercise of the derivative loan commitments. Mandatory delivery contracts are accounted for as derivative instruments. Generally, best efforts contracts also meet the definition of derivative instruments after the loan to the borrower has closed. Accordingly, forward loan sale commitments that economically hedge the closed loan inventory are recognized at fair value in the Consolidated Statements of Condition in other assets or other liabilities with changes in their fair values recorded as a component of mortgage banking activities in the Consolidated Statements of Income. The Company estimates the fair value of its forward loan sales commitments using a methodology similar to that used for derivative loan commitments.

Interest Rate Swap Agreements

The Company enters into interest rate swaps (“swaps”) with commercial loan customers to provide a facility to mitigate the fluctuations in the variable rate on the respective loans. These swaps are matched in exact offsetting terms to swaps that the Company enters into with an outside third party. The swaps are reported at fair value in other assets or other liabilities in the Consolidated Statements of Condition. The Company's swaps qualify as derivatives, but are not designated as hedging instruments, thus any net gain or loss resulting from changes in the fair value is recognized in other non-interest income in the Consolidated Statements of Income. Further discussion of the Company's financial derivatives is set forth in Note 19.

Off-Balance Sheet Credit Risk

The Company issues financial or standby letters of credit that represent conditional commitments to fund transactions by the Company, typically to guarantee performance of a customer to a third-party related to borrowing arrangements. The credit risk associated with issuing letters of credit is essentially the same as occurs when extending loan facilities to borrowers. The Company monitors the exposure to the letters of credit as part of its credit review process. Extensions of letters of credit, if any, would become part of the loan balance outstanding and would be evaluated in accordance with the Company’s credit policies. Potential exposure to loss for unfunded letters of credit if deemed necessary would be recorded in other liabilities in the Consolidated Statements of Condition.

In the ordinary course of business the Company originates and sells whole loans to a variety of investors. Mortgage loans sold are subject to representations and warranties made to the third-party purchasers regarding certain attributes. Subsequent to the sale, if a material underwriting deficiency or documentation defect is determined, the Company may be obligated to repurchase the mortgage loan or reimburse the investor for losses incurred if the deficiency or defect cannot be rectified within a specific period subsequent to discovery. The Company monitors the activity regarding the requirement to repurchase loans and the associated losses incurred. This information is applied to determine an estimated recourse reserve that is recorded in other liabilities in the Consolidated Statements of Condition.

Valuation of Long-Lived Assets

The Company reviews long-lived assets, including leases, and certain identifiable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability is measured by comparing the carrying amount of the asset to future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets

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exceeds the estimated fair value of the assets. Assets to be disposed of are reported at the lower of the cost or the fair value, less costs to sell.

Transfers of Financial Assets

Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right or from providing more than a trivial benefit to the transferor) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through any agreement to repurchase or redeem them before their maturity or likely cause a holder to return those assets whether through unilateral ability or a price so favorable to the transferee that it is probable that the transferee will require the transferor to repurchase them. A participating interest must be in an entire financial asset and cannot represent an interest in a group of financial assets. Except for compensation paid for services performed, all cash flows from the asset are allocated to the participating interest holders in proportion to their share of ownership. Financial assets obtained or liabilities incurred in a sale are recognized and initially measured at fair value.

Advertising Costs

Advertising costs are expensed as incurred and included as marketing expense in non-interest expenses in the Consolidated Statements of Income.

Net Income per Common Share

The Company calculates earnings per common share under the two class method, which provides that unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and shall be included in the computation of earnings per share pursuant to the dual class method. The Company has determined that its outstanding non-vested restricted stock awards are participating securities.

Under the two class method, basic earnings per common share is computed by dividing net earnings allocated to common shareholders by the weighted average number of common shares outstanding during the applicable period, which excludes outstanding participating securities. Diluted earnings per common share is computed using the weighted average number of common shares determined for the basic earnings per common share computation plus the dilutive effect of incremental stock options and restricted stock.

Income Taxes

Income tax expense is based on the results of operations, adjusted for permanent differences between items of income or expense reported in the financial statements and those reported for tax purposes. Deferred income tax assets and liabilities are determined using the liability method. Under the liability method, deferred income taxes are determined based on the differences between the financial statement carrying amounts and the income tax bases of assets and liabilities and are measured at the enacted tax rates that will be in effect when these differences reverse. The effects of the enactment of the new tax law are accounted for under the existing authoritative guidance.

The Company’s policy is to recognize interest and penalties on income taxes in other non-interest expense in the Consolidated Statements of Income.

Adopted Accounting Pronouncements

In December 2019, FASB released ASU 2019-12 - Income Taxes (Topic 740), which simplifies the accounting for income taxes by removing multiple exceptions to the general principals in Topic 740. The standard was effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2020. The Company adopted this standard during the current year and it did not have a material impact on the Company’s Consolidated Financial Statements.

Pending Accounting Pronouncements

In March 2020, FASB released Accounting Standards Update (“ASU”) 2020-04 - Reference Rate Reform (Topic 848), which provides optional guidance to ease the accounting burden in accounting for, or recognizing the effects from, reference rate reform on financial reporting. The new standard is a result of LIBOR likely being discontinued as an available benchmark rate. The standard is elective and provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, or other transactions that reference LIBOR, or another reference rate expected to be discontinued. The amendments in the update are effective for all entities between March 12, 2020 and December 31, 2022, and can be adopted at any time during this period. The Company has not yet fully

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adopted this standard. A cross-functional working group has been established to guide the Company’s transition from LIBOR to alternative reference rates. The Company has identified its products that are either directly or indirectly influenced by LIBOR and has implemented enhanced fallback language to facilitate the transition to alternative reference rates. The Company is evaluating existing platforms and systems and preparing to offer new rates. The Company stopped originating any new loans referencing LIBOR during 2021. Currently, the Company does not expect that the adoption of this standard will have a material impact on its Consolidated Financial Statements.

NOTE 2 – ACQUISITION OF REVERE BANK

On April 1, 2020 (“Acquisition Date”), the Company completed the acquisition of Revere Bank (“Revere”), a Maryland chartered commercial bank, in accordance with the definitive agreement that was entered into on September 23, 2019 by and among the Company, the Bank and Revere. In connection with the completion of the merger, former Revere shareholders received 1.05 shares of Sandy Spring common stock for each share of Revere common stock they held. Based on the $22.64 per share closing price of Sandy Spring common stock on March 31, 2020, and including the fair value of options converted or cashed-out, the total transaction value was approximately $293.0 million. Upon completion of the acquisition, Sandy Spring shareholders owned approximately 74 percent of the combined company, and former Revere shareholders owned approximately 26 percent.

As of March 31, 2020, Revere, headquartered in Rockville, MD, had more than $2.8 billion in assets and operated 11 full-service community banking offices throughout the Washington D.C. metropolitan region.

The acquisition of Revere was accounted for as a business combination using the acquisition method of accounting and, accordingly, assets acquired, liabilities assumed, and consideration paid are recorded at estimated fair values on the Acquisition Date. The provisional amount of goodwill recognized as of the Acquisition Date was approximately $0.8 million. After immaterial adjustments recorded during the fourth quarter of 2020, the provisional amount of goodwill recognized as of December 31, 2020 was $0.5 million. Management's final review of assets acquired and liabilities assumed did not result in additional adjustments during the first quarter of 2021, and goodwill was determined to be final as of March 31, 2021. The goodwill is not deductible for tax purposes.

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The consideration paid for Revere’s common equity and outstanding stock options and the final fair values of acquired identifiable assets and assumed identifiable liabilities as of March 31, 2021 were as follows:

(Dollars in thousands, except per share data)	March 31, 2021
Purchase price:
Fair value of common shares issued (12,768,949 shares) based on Sandy Spring's share price of $22.64	$	289,089
Fair value of Revere stock options converted to Sandy Spring stock options	3,611
Cash paid for cashed-out Revere stock options	291
Cash for fractional shares	11
Total purchase price	$	293,002
Identifiable assets:
Cash and cash equivalents	$	80,744
Investments available-for-sale	180,752
Loans	2,502,244
Premises and equipment	3,443
Accrued interest receivable	7,651
Core deposit intangible asset	18,360
Other assets	53,162
Total identifiable assets	$	2,846,356
Identifiable liabilities:
Deposits	$	2,322,422
Borrowings	205,514
Other liabilities	25,933
Total identifiable liabilities	$	2,553,869
Fair value of net assets acquired including identifiable intangible assets	292,487
Goodwill	$	515

NOTE 3 – CASH AND DUE FROM BANKS

The Federal Reserve Act requires that banks maintain cash reserve balances with the Federal Reserve Bank based principally on the type and amount of their deposits. At its option, the Company maintains additional balances to compensate for clearing and safekeeping services. The average balance maintained in 2021 was $491.9 million and in 2020 was $236.3 million.

NOTE 4 – INVESTMENTS

Investments available-for-sale

The amortized cost and estimated fair values of investments available-for-sale at December 31 are presented in the following table:

	2021								2020
(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
U.S. treasuries and government agencies	$	68,487	$	202	$	(150)	$	68,539	$	42,750	$	549	$	(2)	$	43,297
State and municipal	323,286		6,561		(3,445)		326,402		377,108		13,470		(211)		390,367
Mortgage-backed and asset-backed	1,074,577		8,203		(11,825)		1,070,955		881,201		24,078		(847)		904,432
Corporate debt	—		—		—		—		9,100		825		—		9,925
Total investments available-for-sale	$	1,466,350	$	14,966	$	(15,420)	$	1,465,896	$	1,310,159	$	38,922	$	(1,060)	$	1,348,021

Any unrealized losses in the U.S. treasuries and government agencies, state and municipal, mortgage-backed and asset-backed investment securities at December 31, 2021 are due to changes in interest rates and not credit-related events. As such, no allowance for credit losses is required at December 31, 2021. Unrealized losses on investment securities are expected to recover over time as these securities approach maturity. The Company does not intend to sell, nor is it more likely than not that it will be required to sell, these

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securities and has sufficient liquidity to hold these securities for an adequate period of time, which may be maturity, to allow for any anticipated recovery in fair value.

The mortgage-backed and asset-backed portfolio at December 31, 2021 is composed entirely of either the most senior tranches of GNMA, FNMA or FHLMC collateralized mortgage obligations ($364.4 million), GNMA, FNMA or FHLMC mortgage-backed securities ($652.0 million) and SBA asset-backed securities ($54.6 million).

Gross unrealized losses and fair values by length of time that individual available-for-sale securities have been in an unrealized loss position at December 31 are presented in the following tables:

	December 31, 2021
	Number of Securities	Less Than 12 Months				12 Months or More				Total
(Dollars in thousands)		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. treasuries and government agencies	5	$	49,695	$	150	$	—	$	—	$	49,695	$	150
State and municipal	32	63,206		2,288		21,740		1,157		84,946		3,445
Mortgage-backed and asset-backed	104	665,813		10,145		37,857		1,680		703,670		11,825
Total	141	$	778,714	$	12,583	$	59,597	$	2,837	$	838,311	$	15,420

	December 31, 2020
	Number of Securities	Less Than 12 Months				12 Months or More				Total
(Dollars in thousands)		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. treasuries and government agencies	2	$	25,369	$	2	$	—	$	—	$	25,369	$	2
State and municipal	8	22,753		211		—		—		22,753		211
Mortgage-backed and asset-backed	24	44,746		154		76,879		693		121,625		847
Total	34	$	92,868	$	367	$	76,879	$	693	$	169,747	$	1,060

The Company has allocated mortgage-backed and asset-backed securities into the four maturity groupings reflected in the following table using the expected average life of the individual securities based on statistics provided by independent third-party industry sources. Expected maturities will differ from contractual maturities as borrowers may have the right to prepay obligations with or without prepayment penalties.

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The estimated fair values and amortized costs of debt securities available-for-sale by contractual maturity at December 31 are provided in the following table:

	December 31, 2021				December 31, 2020
(In thousands)	Fair Value		Amortized Cost		Fair Value		Amortized Cost
U.S. treasuries and government agencies:
One year or less	$	12,029	$	11,995	$	33,963	$	33,833
One to five years	56,510		56,492		9,334		8,917
Five to ten years	—		—		—		—
After ten years	—		—		—		—
State and municipal:
One year or less	12,821		12,709		16,581		16,458
One to five years	27,408		26,637		44,910		43,857
Five to ten years	42,960		42,661		59,059		56,130
After ten years	243,213		241,279		269,817		260,663
Mortgage-backed and asset-backed:
One year or less	9,272		9,239		1		1
One to five years	14,752		14,575		21,637		21,229
Five to ten years	388,918		390,569		74,142		72,481
After ten years	658,013		660,194		808,652		787,490
Corporate debt:
One year or less	—		—		—		—
One to five years	—		—		2,318		2,100
Five to ten years	—		—		7,607		7,000
After ten years	—		—		—		—
Total available-for-sale debt securities	$	1,465,896	$	1,466,350	$	1,348,021	$	1,310,159

At December 31, 2021 and 2020, investments available-for-sale with a book value of $531.6 million and $465.7 million, respectively, were pledged as collateral for certain government deposits and for other purposes as required or permitted by law. The outstanding balance of no single issuer, except for U.S. government agency securities, exceeded ten percent of stockholders' equity at December 31, 2021 and 2020.

Equity securities

Other equity securities at the dates indicated are presented in the following table:

(In thousands)	2021		2020
Federal Reserve Bank stock	$	34,097	$	38,650
Federal Home Loan Bank of Atlanta stock	6,392		26,433
Other equity securities	677		677
Total equity securities	$	41,166	$	65,760

Investment securities gains

Gross realized gains and losses on all investments for the years ended December 31 are presented in the following table:

(In thousands)	2021		2020		2019
Gross realized gains from sales of investments available-for-sale	$	3,588	$	1,297	$	14
Gross realized losses from sales of investments available-for-sale	(3,478)		(1,068)		(2)
Net gains from calls of investments available-for-sale	102		238		65
Net investment securities gains	$	212	$	467	$	77

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NOTE 5 – LOANS

The lending business of the Company is based on understanding, measuring and controlling the credit risk inherent in the loan portfolio. The Company’s loan portfolio is subject to varying degrees of credit risk. Credit risk entails both general risks, which are inherent in the process of lending, and risk specific to individual borrowers. The Company’s credit risk is mitigated through portfolio diversification, which limits exposure to any single customer, industry or collateral type.

Outstanding loan balances at December 31, 2021 and 2020 are net of unearned income, including net deferred loan fees of $14.3 million and $24.5 million, respectively. Net deferred loan fees at December 31, 2021, included $4.6 million in net fees related to the loans originated under the Paycheck Protection Program (“PPP”) compared to $21.2 million at the end of the prior year.

The loan portfolio segment balances at December 31 are presented in the following table:

(In thousands)	2021		2020
Commercial real estate:
Commercial investor real estate	$	4,141,346	$	3,634,720
Commercial owner-occupied real estate	1,690,881		1,642,216
Commercial AD&C	1,088,094		1,050,973
Commercial business	1,481,834		2,267,548
Total commercial loans	8,402,155		8,595,457
Residential real estate:
Residential mortgage	937,570		1,105,179
Residential construction	197,652		182,619
Consumer	429,714		517,254
Total residential and consumer loans	1,564,936		1,805,052
Total loans	$	9,967,091	$	10,400,509

The fair value of the financial assets acquired in the Revere acquisition as of the Acquisition Date included loans receivable with a gross amortized cost basis of $2.5 billion. As of the Acquisition Date, the Company identified $974.8 million of loans that were classified as PCD. An initial allowance for credit losses of $18.6 million was recorded through a gross-up adjustment to fair values of PCD loans. A fair value premium related to other factors totaled $4.5 million and amortizes to interest income over the remaining life of each loan. Total fair value of PCD loans as of the Acquisition Date was $960.7 million. Refer to Note 1 for more details on factors considered in the PCD assessment.

At the Acquisition Date, non-PCD loans totaled $1.5 billion and had a net fair value premium of $2.1 million, which amortizes to interest income over the remaining life of each loan. See Note 1 for more information on the Company’s accounting policy for acquired loans and Note 2 for more information on the Revere acquisition.

Portfolio Segments

The Company currently manages its credit products and the respective exposure to credit losses (credit risk) by the following specific portfolio segments which are levels at which the Company develops and documents its systematic methodology to determine the allowance for credit losses attributable to each respective portfolio segment. These segments are:

•Commercial investor real estate loans - Commercial investor real estate loans consist of loans secured by nonowner-occupied properties where an established banking relationship exists and involves investment properties for warehouse, retail, and office space with a history of occupancy and cash flow. This commercial investor real estate category contains mortgage loans to the developers and owners of commercial real estate where the borrower intends to operate or sell the property at a profit and use the income stream or proceeds from the sale(s) to repay the loan.

•Commercial owner-occupied real estate loans - Commercial owner-occupied real estate loans consist of commercial mortgage loans secured by owner-occupied properties where an established banking relationship exists and involves a variety of property types to conduct the borrower’s operations. The decision to extend a loan is based upon the borrower’s financial health and the ability of the borrower and the business to repay. The primary source of repayment for this type of loan is the cash flow from the operations of the business.

•Commercial acquisition, development and construction loans - Commercial acquisition, development and construction loans are intended to finance the construction of commercial properties and include loans for the acquisition and development

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of land. Construction loans represent a higher degree of risk than permanent real estate loans and may be affected by a variety of additional factors such as the borrower’s ability to control costs and adhere to time schedules and the risk that constructed units may not be absorbed by the market within the anticipated time frame or at the anticipated price. The loan commitment on these loans often includes an interest reserve that allows the lender to periodically advance loan funds to pay interest charges on the outstanding balance of the loan.

•Commercial business loans - Commercial loans are made to provide funds for equipment and general corporate needs. Repayment of a loan primarily comes from the funds obtained from the operation of the borrower’s business. Commercial loans also include lines of credit that are utilized to finance a borrower’s short-term credit needs and/or to finance a percentage of eligible receivables and inventory. Loans issued under the PPP are also included in this category, a substantial portion of which are expected to be forgiven by the Small Business Administration pursuant to the CARES Act.

•Residential mortgage loans - The residential mortgage loans category contains permanent mortgage loans principally to consumers secured by residential real estate. Residential real estate loans are evaluated for the adequacy of repayment sources at the time of approval, based upon measures including credit scores, debt-to-income ratios, and collateral values. Loans may be either conforming or non-conforming.

•Residential construction loans - The Company makes residential construction loans generally to provide interim financing on residential property during the construction period. Borrowers are typically individuals who will ultimately occupy the single-family dwelling. Loan funds are disbursed periodically as pre-specified stages of completion are attained based upon site inspections.

•Consumer loans - This category of loans includes primarily home equity loans and lines, installment loans, personal lines of credit, and other loans. The home equity category consists mainly of revolving lines of credit to consumers which are secured by residential real estate. These loans are typically secured with second mortgages on the homes. Other consumer loans include installment loans used by customers to purchase automobiles, boats and recreational vehicles.

Loans to Related Parties

Certain directors and executive officers have loan transactions with the Company. The following schedule summarizes changes in amounts of loans outstanding, both direct and indirect, to these persons during the periods indicated:

(In thousands)	2021		2020
Balance at January 1	$	96,005	$	51,367
Additions	7,040		46,846
Repayments	(24,818)		(2,208)
Balance at December 31	$	78,227	$	96,005

NOTE 6 – CREDIT QUALITY ASSESSMENT

Allowance for Credit Losses

Summary information on the allowance for credit loss activity for the years ended December 31 is provided in the following table:

(In thousands)	2021		2020		2019
Balance at beginning of year	$	165,367	$	56,132	$	53,486
Initial allowance on PCD loans at adoption of ASC 326	—		2,762		—
Transition impact of adopting ASC 326	—		2,983		—
Initial allowance on Revere PCD loans	—		18,628		—
Provision/ (credit) for credit losses	(45,556)		85,669		4,684
Loan charge-offs	(12,313)		(1,819)		(2,668)
Loan recoveries	1,647		1,012		630
Net charge-offs	(10,666)		(807)		(2,038)
Balance at period end	$	109,145	$	165,367	$	56,132

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The following table provides summary information regarding collateral dependent loans individually evaluated for credit loss at the dates indicated:

(In thousands)	2021		2020
Collateral dependent loans individually evaluated for credit loss with an allowance	$	9,510	$	20,717
Collateral dependent loans individually evaluated for credit loss without an allowance	24,024		77,001
Total individually evaluated collateral dependent loans	$	33,534	$	97,718
Allowance for credit losses related to loans evaluated individually	$	6,593	$	11,405
Allowance for credit losses related to loans evaluated collectively	102,552		153,962
Total allowance for credit losses	$	109,145	$	165,367

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The following tables provide information on the activity in the allowance for credit losses by the respective loan portfolio segment for the years ended December 31:

	2021
	Commercial Real Estate												Residential Real Estate
(In thousands)	Commercial Investor R/E			Commercial Owner- Occupied R/E			Commercial AD&C			Commercial Business			Residential Mortgage			Residential Construction			Consumer			Total
Balance as of December 31, 2020	$	57,404		$	20,061		$	22,157		$	46,806		$	11,295		$	1,502		$	6,142		$	165,367
Provision/ (credit)	(6,598)			(8,238)			172			(20,132)			(6,321)			(459)			(3,980)			(45,556)
Charge-offs	(5,802)			(136)			(2,007)			(4,069)			—			—			(299)			(12,313)
Recoveries	285			—			—			565			410			5			382			1,647
Net (charge-offs)/ recoveries	(5,517)			(136)			(2,007)			(3,504)			410			5			83			(10,666)
Balance at end of period	$	45,289		$	11,687		$	20,322		$	23,170		$	5,384		$	1,048		$	2,245		$	109,145
Total loans	$	4,141,346		$	1,690,881		$	1,088,094		$	1,481,834		$	937,570		$	197,652		$	429,714		$	9,967,091
Allowance for credit losses to total loans ratio	1.09		%	0.69		%	1.87		%	1.56		%	0.57		%	0.53		%	0.52		%	1.10		%
Average loans	$	3,689,769		$	1,661,015		$	1,110,420		$	1,952,537		$	979,754		$	178,171		$	463,200		$	10,034,866
Net charge-offs/ (recoveries) to average loans	0.15		%	0.01		%	0.18		%	0.18		%	(0.04)		%	—		%	(0.02)		%	0.11		%
Balance of loans individually evaluated for credit loss	$	12,489		$	9,306		$	650		$	9,033		$	1,704		$	—		$	352		$	33,534
Allowance related to loans evaluated individually	$	213		$	79		$	504		$	5,797		$	—		$	—		$	—		$	6,593
Individual allowance to loans evaluated individually ratio	1.71		%	0.85		%	77.54		%	64.18		%	—		%	—		%	—		%	19.66		%
Balance of loans collectively evaluated for credit loss	$	4,128,857		$	1,681,575		$	1,087,444		$	1,472,801		$	935,866		$	197,652		$	429,362		$	9,933,557
Allowance related to loans evaluated collectively	$	45,076		$	11,608		$	19,818		$	17,373		$	5,384		$	1,048		$	2,245		$	102,552
Collective allowance to loans evaluated collectively ratio	1.09		%	0.69		%	1.82		%	1.18		%	0.58		%	0.53		%	0.52		%	1.03		%

	2020
	Commercial Real Estate												Residential Real Estate
(In thousands)	Commercial Investor R/E			Commercial Owner- Occupied R/E			Commercial AD&C			Commercial Business			Residential Mortgage			Residential Construction			Consumer			Total
Balance as of December 31, 2019	$	18,407		$	6,884		$	7,590		$	11,395		$	8,803		$	967		$	2,086		$	56,132
Initial allowance on PCD loans at adoption of ASC 326	1,114			—			—			1,549			—			—			99			2,762
Transition impact of adopting ASC 326	(3,125)			387			2,576			2,988			(388)			(275)			820			2,983
Initial allowance on Revere PCD loans	7,973			2,782			1,248			6,289			243			6			87			18,628
Provision	33,431			10,008			10,743			24,374			3,016			798			3,299			85,669
Charge-offs	(411)			—			—			(491)			(484)			—			(433)			(1,819)
Recoveries	15			—			—			702			105			6			184			1,012
Net (charge-offs)/ recoveries	(396)			—			—			211			(379)			6			(249)			(807)
Balance at end of period	$	57,404		$	20,061		$	22,157		$	46,806		$	11,295		$	1,502		$	6,142		$	165,367
Total loans	$	3,634,720		$	1,642,216		$	1,050,973		$	2,267,548		$	1,105,179		$	182,619		$	517,254		$	10,400,509
Allowance for credit losses to total loans ratio	1.58		%	1.22		%	2.11		%	2.06		%	1.02		%	0.82		%	1.19		%	1.59		%
Average loans	$	3,210,527		$	1,560,223		$	906,414		$	1,781,197		$	1,168,668		$	165,567		$	524,897		$	9,317,493
Net charge-offs/ (recoveries) to average loans	0.01		%	—		%	—		%	(0.01)		%	0.03		%	—		%	0.05		%	0.01		%
Balance of loans individually evaluated for credit loss	$	45,227		$	11,561		$	15,044		$	23,648		$	1,874		$	—		$	364		$	97,718
Allowance related to loans evaluated individually	$	1,273		$	—		$	603		$	9,529		$	—		$	—		$	—		$	11,405
Individual allowance to loans evaluated individually ratio	2.81		%	—		%	4.01		%	40.30		%	—		%	—		%	—		%	11.67		%
Balance of loans collectively evaluated for credit loss	$	3,589,493		$	1,630,655		$	1,035,929		$	2,243,900		$	1,103,305		$	182,619		$	516,890		$	10,302,791
Allowance related to loans evaluated collectively	$	56,131		$	20,061		$	21,554		$	37,277		$	11,295		$	1,502		$	6,142		$	153,962
Collective allowance to loans evaluated collectively ratio	1.56		%	1.23		%	2.08		%	1.66		%	1.02		%	0.82		%	1.19		%	1.49		%

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The following table presents collateral dependent loans individually evaluated for credit losses with the associated allowances for credit losses by the applicable portfolio segment:

	2021
	Commercial Real Estate								Residential Real Estate						Total
(In thousands)	Commercial Investor R/E		Commercial Owner- Occupied R/E		Commercial AD&C		Commercial Business		Residential Mortgage		Residential Construction		Consumer
Loans individually evaluated for credit losses with an allowance:
Non-accruing	$	808	$	79	$	650	$	4,849	$	—	$	—	$	—	$	6,386
Restructured accruing	—		—		—		613		—		—		—		613
Restructured non-accruing	336		—		—		2,175		—		—		—		2,511
Balance	$	1,144	$	79	$	650	$	7,637	$	—	$	—	$	—	$	9,510
Allowance	$	213	$	79	$	504	$	5,797	$	—	$	—	$	—	$	6,593
Loans individually evaluated for credit losses without an allowance:
Non-accruing	$	3,498	$	4,775	$	—	$	434	$	—	$	—	$	—	$	8,707
Restructured accruing	—		—		—		—		1,554		—		—		1,554
Restructured non-accruing	7,847		4,452		—		962		150		—		352		13,763
Balance	$	11,345	$	9,227	$	—	$	1,396	$	1,704	$	—	$	352	$	24,024
Total individually evaluated loans:
Non-accruing	$	4,306	$	4,854	$	650	$	5,283	$	—	$	—	$	—	$	15,093
Restructured accruing	—		—		—		613		1,554		—		—		2,167
Restructured non-accruing	8,183		4,452		—		3,137		150		—		352		16,274
Balance	$	12,489	$	9,306	$	650	$	9,033	$	1,704	$	—	$	352	$	33,534
Unpaid contractual principal balance	$	12,857	$	11,132	$	695	$	10,573	$	2,778	$	—	$	364	$	38,399

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	2020
	Commercial Real Estate								Residential Real Estate						Total
(In thousands)	Commercial Investor R/E		Commercial Owner- Occupied R/E		Commercial AD&C		Commercial Business		Residential Mortgage		Residential Construction		Consumer
Loans individually evaluated for credit losses with an allowance:
Non-accruing	$	4,913	$	—	$	1,328	$	11,178	$	—	$	—	$	—	$	17,419
Restructured accruing	—		—		—		589		—		—		—		589
Restructured non-accruing	699		—		—		2,010		—		—		—		2,709
Balance	$	5,612	$	—	$	1,328	$	13,777	$	—	$	—	$	—	$	20,717
Allowance	$	1,273	$	—	$	603	$	9,529	$	—	$	—	$	—	$	11,405
Loans individually evaluated for credit losses without an allowance:
Non-accruing	$	39,615	$	9,315	$	13,716	$	9,118	$	—	$	—	$	—	$	71,764
Restructured accruing	—		—		—		126		1,602		—		—		1,728
Restructured non-accruing	—		2,246		—		627		272		—		364		3,509
Balance	$	39,615	$	11,561	$	13,716	$	9,871	$	1,874	$	—	$	364	$	77,001
Total individually evaluated loans:
Non-accruing	$	44,528	$	9,315	$	15,044	$	20,296	$	—	$	—	$	—	$	89,183
Restructured accruing	—		—		—		715		1,602		—		—		2,317
Restructured non-accruing	699		2,246		—		2,637		272		—		364		6,218
Balance	$	45,227	$	11,561	$	15,044	$	23,648	$	1,874	$	—	$	364	$	97,718
Unpaid contractual principal balance	$	49,920	$	15,309	$	16,040	$	30,958	$	3,225	$	—	$	364	$	115,816

The following table presents average principal balance of total non-accrual loans and contractual interest due on non-accrual loans for the periods indicated below:

	2021
	Commercial Real Estate								Residential Real Estate						Total
(In thousands)	Commercial Investor R/E		Commercial Owner- Occupied R/E		Commercial AD&C		Commercial Business		Residential Mortgage		Residential Construction		Consumer
Average non-accrual loans for the period	$	31,590	$	9,444	$	9,236	$	12,678	$	9,439	$	36	$	7,369	$	79,792
Contractual interest income due on non-accrual loans during the period	$	2,169	$	555	$	597	$	1,096	$	271	$	2	$	402	$	5,092

	2020
	Commercial Real Estate								Residential Real Estate						Total
(In thousands)	Commercial Investor R/E		Commercial Owner- Occupied R/E		Commercial AD&C		Commercial Business		Residential Mortgage		Residential Construction		Consumer
Average non-accrual loans for the period	$	26,849	$	6,605	$	4,267	$	16,532	$	11,634	$	—	$	6,675	$	72,562
Contractual interest income due on non-accrual loans during the period	$	6,547	$	2,741	$	4,505	$	2,858	$	918	$	—	$	732	$	18,301

There was no interest income recognized on non-accrual loans during the year ended December 31, 2021. See Note 1 for additional information on the Company's policies for non-accrual loans. Loans designated as non-accrual have all previously accrued but unpaid interest reversed from interest income. During the year ended December 31, 2021, new loans placed on non-accrual status totaled $8.1 million and the related amount of reversed uncollected accrued interest was $0.2 million.

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Credit Quality

The following tables provide information on the credit quality of the loan portfolio by segment at December 31 for the years indicated:

	2021
	Commercial Real Estate								Residential Real Estate
(In thousands)	Commercial Investor R/E		Commercial Owner- Occupied R/E		Commercial AD&C		Commercial Business		Residential Mortgage		Residential Construction		Consumer		Total
Analysis of non-accrual loan activity:
Balance at beginning of period	$	45,227	$	11,561	$	15,044	$	22,933	$	10,212	$	—	$	7,384	$	112,361
Loans placed on non-accrual	699		3,676		49		1,339		695		62		1,626		8,146
Non-accrual balances transferred to OREO	—		(257)		—		—		—		—		—		(257)
Non-accrual balances charged-off	(5,803)		(136)		(2,007)		(3,547)		—		—		(100)		(11,593)
Net payments or draws	(26,813)		(5,538)		(12,436)		(12,305)		(2,406)		(7)		(1,725)		(61,230)
Non-accrual loans brought current	(821)		—		—		—		(60)		—		(460)		(1,341)
Balance at end of period	$	12,489	$	9,306	$	650	$	8,420	$	8,441	$	55	$	6,725	$	46,086

	2020
	Commercial Real Estate								Residential Real Estate
(In thousands)	Commercial Investor R/E		Commercial Owner- Occupied R/E		Commercial AD&C		Commercial Business		Residential Mortgage		Residential Construction		Consumer		Total
Analysis of non-accrual loan activity:
Balance at beginning of period	$	8,437	$	4,148	$	829	$	8,450	$	12,661	$	—	$	4,107	$	38,632
PCD loans designated as non-accrual (1)	9,544		—		—		2,539		8		—		993		13,084
Loans placed on non-accrual	37,882		8,572		15,844		17,442		1,485		—		4,061		85,286
Non-accrual balances transferred to OREO	—		—		—		—		(70)		—		—		(70)
Non-accrual balances charged-off	(411)		—		—		(446)		(416)		—		(121)		(1,394)
Net payments or draws	(10,225)		(1,059)		(1,629)		(4,169)		(2,598)		—		(1,521)		(21,201)
Non-accrual loans brought current	—		(100)		—		(883)		(858)		—		(135)		(1,976)
Balance at end of period	$	45,227	$	11,561	$	15,044	$	22,933	$	10,212	$	—	$	7,384	$	112,361

(1)Upon the adoption of the CECL standard, the Company transitioned from closed pool level accounting for PCI loans during the first quarter of 2020. Non-accrual loans are determined based on the individual loan level and aggregated for reporting.

	2021
	Commercial Real Estate								Residential Real Estate
(In thousands)	Commercial Investor R/E		Commercial Owner- Occupied R/E		Commercial AD&C		Commercial Business		Residential Mortgage		Residential Construction		Consumer		Total
Performing loans:
Current	$	4,127,009	$	1,680,635	$	1,085,642	$	1,471,669	$	919,199	$	197,597	$	419,558	$	9,901,309
30-59 days	1,656		86		1,802		753		5,157		—		3,021		12,475
60-89 days	192		854		—		379		2,662		—		410		4,497
Total performing loans	4,128,857		1,681,575		1,087,444		1,472,801		927,018		197,597		422,989		9,918,281
Non-performing loans:
Non-accrual loans	12,489		9,306		650		8,420		8,441		55		6,725		46,086
Loans greater than 90 days past due	—		—		—		—		557		—		—		557
Restructured loans	—		—		—		613		1,554		—		—		2,167
Total non-performing loans	12,489		9,306		650		9,033		10,552		55		6,725		48,810
Total loans	$	4,141,346	$	1,690,881	$	1,088,094	$	1,481,834	$	937,570	$	197,652	$	429,714	$	9,967,091

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	2020
	Commercial Real Estate								Residential Real Estate
(In thousands)	Commercial Investor R/E		Commercial Owner- Occupied R/E		Commercial AD&C		Commercial Business		Residential Mortgage		Residential Construction		Consumer		Total
Performing loans:
Current	$	3,571,184	$	1,624,265	$	1,033,057	$	2,238,617	$	1,073,963	$	182,557	$	502,548	$	10,226,191
30-59 days	14,046		6,390		29		4,859		16,213		—		5,275		46,812
60-89 days	4,130		—		2,843		263		2,709		62		2,047		12,054
Total performing loans	3,589,360		1,630,655		1,035,929		2,243,739		1,092,885		182,619		509,870		10,285,057
Non-performing loans:
Non-accrual loans	45,227		11,561		15,044		22,933		10,212		—		7,384		112,361
Loans greater than 90 days past due	133		—		—		161		480		—		—		774
Restructured loans	—		—		—		715		1,602		—		—		2,317
Total non-performing loans	45,360		11,561		15,044		23,809		12,294		—		7,384		115,452
Total loans	$	3,634,720	$	1,642,216	$	1,050,973	$	2,267,548	$	1,105,179	$	182,619	$	517,254	$	10,400,509

The credit quality indicators for commercial loans are developed through review of individual borrowers on an ongoing basis. Each borrower is evaluated at least annually with more frequent evaluation of more severely criticized loans. The indicators represent the rating for loans as of the date presented is based on the most recent credit review performed. These credit quality indicators are defined as follows:

Pass - A pass rated credit is not adversely classified because it does not display any of the characteristics for adverse classification.

Special mention - A special mention credit has potential weaknesses that deserve management’s close attention. If uncorrected, such weaknesses may result in deterioration of the repayment prospects or collateral position at some future date. Special mention assets are not adversely classified and do not warrant adverse classification.

Substandard - A substandard loan is inadequately protected by the current net worth and payment capacity of the obligor or of the collateral pledged, if any. Loans classified as substandard generally have a well-defined weakness, or weaknesses, that jeopardize the liquidation of the debt. These loans are characterized by the distinct possibility of loss if the deficiencies are not corrected.

Doubtful - A loan that is classified as doubtful has all the weaknesses inherent in a loan classified as substandard with added characteristics that the weaknesses make collection or liquidation in full highly questionable and improbable, on the basis of currently existing facts, conditions and values.

Loss – Loans classified as a loss are considered uncollectible and of such little value that their continuing to be carried as a loan is not warranted. This classification is not necessarily equivalent to no potential for recovery or salvage value, but rather that it is not appropriate to defer a full write-off even though partial recovery may be effected in the future.

The following tables provide information about credit quality indicators by the year of origination:

	2021
	Term Loans by Origination Year												Revolving
(In thousands)	2021		2020		2019		2018		2017		Prior		Loans		Total
Commercial Investor R/E:
Pass	$	1,391,969	$	748,236	$	616,761	$	357,640	$	328,327	$	633,913	$	19,239	$	4,096,085
Special Mention	2,210		510		4,646		596		2,204		10,438		—		20,604
Substandard	807		336		4,308		8,568		10,064		574		—		24,657
Doubtful	—		—		—		—		—		—		—		—
Total	$	1,394,986	$	749,082	$	625,715	$	366,804	$	340,595	$	644,925	$	19,239	$	4,141,346
Current period gross charge-offs	$	—	$	—	$	—	$	903	$	3,975	$	924	$	—	$	5,802
Commercial Owner-Occupied R/E:
Pass	$	360,169	$	254,350	$	319,348	$	178,416	$	172,354	$	363,685	$	1,149	$	1,649,471
Special Mention	156		1,476		4,388		9,035		4,456		9,106		—		28,617
Substandard	1,968		1,800		4,028		2,265		354		2,378		—		12,793
Doubtful	—		—		—		—		—		—		—		—
Total	$	362,293	$	257,626	$	327,764	$	189,716	$	177,164	$	375,169	$	1,149	$	1,690,881
Current period gross charge-offs	$	—	$	—	$	—	$	136	$	—	$	—	$	—	$	136
Commercial AD&C:
Pass	$	454,207	$	226,332	$	148,260	$	87,934	$	13,938	$	—	$	152,896	$	1,083,567
Special Mention	2,888		—		—		—		—		—		989		3,877
Substandard	349		—		301		—		—		—		—		650
Doubtful	—		—		—		—		—		—		—		—
Total	$	457,444	$	226,332	$	148,561	$	87,934	$	13,938	$	—	$	153,885	$	1,088,094
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	2,007	$	—	$	—	$	2,007
Commercial Business:
Pass	$	403,871	$	165,194	$	137,069	$	96,800	$	55,100	$	53,764	$	533,893	$	1,445,691
Special Mention	220		1,998		7,030		1,701		548		577		9,212		21,286
Substandard	3,777		3,262		2,609		797		811		2,065		1,536		14,857
Doubtful	—		—		—		—		—		—		—		—
Total	$	407,868	$	170,454	$	146,708	$	99,298	$	56,459	$	56,406	$	544,641	$	1,481,834
Current period gross charge-offs	$	—	$	—	$	88	$	1,674	$	46	$	2,236	$	25	$	4,069
Residential Mortgage:
Beacon score:
660-850	$	246,612	$	165,623	$	46,925	$	65,865	$	102,628	$	223,420	$	—	$	851,073
600-659	11,102		3,285		3,583		4,255		4,645		20,052		—		46,922
540-599	1,472		1,864		2,162		4,522		1,599		8,201		—		19,820
less than 540	452		4,293		1,575		1,829		2,079		9,527		—		19,755
Total	$	259,638	$	175,065	$	54,245	$	76,471	$	110,951	$	261,200	$	—	$	937,570
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Residential Construction:
Beacon score:
660-850	$	134,335	$	45,890	$	8,063	$	2,078	$	1,347	$	1,160	$	—	$	192,873
600-659	1,922		—		650		—		—		—		—		2,572
540-599	—		—		—		—		—		462		—		462
less than 540	1,745		—		—		—		—		—		—		1,745
Total	$	138,002	$	45,890	$	8,713	$	2,078	$	1,347	$	1,622	$	—	$	197,652
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Consumer:
Beacon score:
660-850	$	3,179	$	1,393	$	3,130	$	3,060	$	1,648	$	26,156	$	350,466	$	389,032
600-659	352		123		324		716		430		4,906		14,119		20,970
540-599	58		8		311		160		89		2,809		4,926		8,361
less than 540	88		58		536		544		98		3,101		6,926		11,351
Total	$	3,677	$	1,582	$	4,301	$	4,480	$	2,265	$	36,972	$	376,437	$	429,714
Current period gross charge-offs	$	—	$	—	$	7	$	2	$	—	$	106	$	184	$	299
Total loans	$	3,023,908	$	1,626,031	$	1,316,007	$	826,781	$	702,719	$	1,376,294	$	1,095,351	$	9,967,091

94

	2020
	Term Loans by Origination Year												Revolving
(In thousands)	2020		2019		2018		2017		2016		Prior		Loans		Total
Commercial Investor R/E:
Pass	$	910,426	$	763,214	$	448,406	$	448,698	$	469,077	$	498,384	$	33,531	$	3,571,736
Special Mention	11,044		—		4,879		833		269		27		—		$	17,052
Substandard	589		4,245		13,649		20,619		673		6,157		—		$	45,932
Doubtful	—		—		—		—		—		—		—		$	—
Total	$	922,059	$	767,459	$	466,934	$	470,150	$	470,019	$	504,568	$	33,531	$	3,634,720
Current period gross charge-offs	$	—	$	388	$	—	$	—	$	—	$	23	$	—	$	411
Commercial Owner-Occupied R/E:
Pass	$	285,310	$	385,058	$	234,578	$	192,634	$	204,925	$	306,840	$	1,664	$	1,611,009
Special Mention	2,290		—		3,027		4,742		134		4,079		—		$	14,272
Substandard	1,610		4,335		2,065		465		219		8,009		—		$	16,703
Doubtful	—		—		—		—		—		232		—		$	232
Total	$	289,210	$	389,393	$	239,670	$	197,841	$	205,278	$	319,160	$	1,664	$	1,642,216
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial AD&C:
Pass	$	485,631	$	261,537	$	149,703	$	50,192	$	89	$	2,357	$	80,764	$	1,030,273
Special Mention	1,711		—		—		—		—		—		—		$	1,711
Substandard	1,439		891		—		13,816		2,843		—		—		$	18,989
Doubtful	—		—		—		—		—		—		—		$	—
Total	$	488,781	$	262,428	$	149,703	$	64,008	$	2,932	$	2,357	$	80,764	$	1,050,973
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial Business:
Pass	$	1,244,822	$	208,682	$	138,861	$	86,830	$	34,498	$	81,760	$	433,016	$	2,228,469
Special Mention	1,929		1,382		1,119		708		309		621		4,319		$	10,387
Substandard	2,914		4,564		3,519		1,631		2,745		3,456		1,829		$	20,658
Doubtful	106		995		849		36		1,284		1,852		2,912		$	8,034
Total	$	1,249,771	$	215,623	$	144,348	$	89,205	$	38,836	$	87,689	$	442,076	$	2,267,548
Current period gross charge-offs	$	—	$	—	$	23	$	160	$	103	$	205	$	—	$	491
Residential Mortgage:
Beacon score:
660-850	$	229,033	$	74,054	$	138,824	$	172,493	$	129,701	$	251,065	$	—	$	995,170
600-659	4,824		7,706		10,763		11,719		8,173		21,424		—		$	64,609
540-599	350		1,238		5,219		2,608		4,791		10,167		—		$	24,373
less than 540	2,702		2,108		3,576		2,150		892		9,599		—		$	21,027
Total	$	236,909	$	85,106	$	158,382	$	188,970	$	143,557	$	292,255	$	—	$	1,105,179
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	11	$	473	$	—	$	484
Residential Construction:
Beacon score:
660-850	$	112,604	$	44,647	$	14,543	$	2,805	$	1,693	$	—	$	172	$	176,464
600-659	1,743		3,189		—		—		—		—		—		$	4,932
540-599	—		—		—		—		369		—		—		$	369
less than 540	854		—		—		—		—		—		—		$	854
Total	$	115,201	$	47,836	$	14,543	$	2,805	$	2,062	$	—	$	172	$	182,619
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Consumer:
Beacon score:
660-850	$	2,575	$	4,609	$	5,112	$	2,110	$	2,614	$	24,444	$	417,737	$	459,201
600-659	374		445		334		428		467		5,401		21,052		$	28,501
540-599	89		1,216		294		339		601		3,926		6,153		$	12,618
less than 540	751		160		525		785		532		2,826		11,355		$	16,934
Total	$	3,789	$	6,430	$	6,265	$	3,662	$	4,214	$	36,597	$	456,297	$	517,254
Current period gross charge-offs	$	—	$	13	$	123	$	8	$	1	$	140	$	148	$	433
Total loans	$	3,305,720	$	1,774,275	$	1,179,845	$	1,016,641	$	866,898	$	1,242,626	$	1,014,504	$	10,400,509

95

The following table provides the amounts of the restructured loans at the date of restructuring for specific segments of the loan portfolio during the period indicated:

	For the Year Ended December 31, 2021
	Commercial Real Estate
(In thousands)	Commercial Investor R/E		Commercial Owner- Occupied R/E		Commercial AD&C		Commercial Business		All Other Loans		Total
Troubled debt restructurings:
Restructured accruing	$	—	$	—	$	—	$	—	$	—	$	—
Restructured non-accruing	9,594		3,157		—		1,824		—		14,575
Balance	$	9,594	$	3,157	$	—	$	1,824	$	—	$	14,575
Specific allowance	$	—	$	—	$	—	$	461	$	—	$	461
Restructured and subsequently defaulted	$	—	$	—	$	—	$	—	$	—	$	—

	For the Year Ended December 31, 2020
	Commercial Real Estate
(In thousands)	Commercial Investor R/E		Commercial Owner- Occupied R/E		Commercial AD&C		Commercial Business		All Other Loans		Total
Troubled debt restructurings:
Restructured accruing	$	—	$	—	$	—	$	380	$	549	$	929
Restructured non-accruing	723		930		—		1,951		—		3,604
Balance	$	723	$	930	$	—	$	2,331	$	549	$	4,533
Specific allowance	$	65	$	—	$	—	$	955	$	—	$	1,020
Restructured and subsequently defaulted	$	—	$	—	$	—	$	—	$	—	$	—

At December 31, 2021, TDR loans totaled $18.4 million, of which $2.2 million were accruing and $16.2 million were non-accruing. There were no commitments to lend additional funds on loans classified as TDRs as of December 31, 2021. TDR loans at December 31, 2020 totaled $8.5 million, of which $2.3 million were accruing and $6.2 million were non-accruing. Commitments to lend additional funds on TDR loans at December 31, 2020 were insignificant.

During the year ended December 31, 2021, the Company restructured $14.6 million in loans that were designated as TDRs. Modifications consisted principally of interest rate concessions. No modifications resulted in the reduction of the principal in the associated loan balances. TDR loans are subject to periodic credit reviews to determine the necessity and appropriateness of an individual credit loss allowance based on the collectability of the recorded investment in the TDR loan. Loans restructured during 2021 had individual reserves of $0.5 million at December 31, 2021. For the year ended December 31, 2020, the Company restructured $4.5 million in loans. Modifications consisted principally of interest rate concessions and no modifications resulted in the reduction of the recorded investment in the associated loan balances. Loans restructured during 2020 had specific reserves of $1.0 million at December 31, 2020.

For more information on the accounting policies for TDRs see Note 1.

96

Other Real Estate Owned

OREO totaled $1.0 million and $1.5 million at December 31, 2021 and 2020, respectively. There was one consumer mortgage loan secured by residential real estate property with the total amount of $0.1 million for which formal foreclosure proceedings were in process as of December 31, 2021.

NOTE 7 – PREMISES AND EQUIPMENT

Presented in the following table are the components of premises and equipment at December 31:

(In thousands)	2021		2020
Land	$	21,164	$	13,262
Buildings and leasehold improvements	70,193		70,776
Equipment	48,889		49,614
Total premises and equipment	140,246		133,652
Less: accumulated depreciation and amortization	(80,561)		(75,932)
Net premises and equipment	$	59,685	$	57,720

Depreciation and amortization expense for premises and equipment amounted to $7.9 million, $8.5 million, and $7.2 million for each of the years ended December 31, 2021, 2020 and 2019, respectively.

NOTE 8 – LEASES

The Company leases real estate properties for its network of bank branches, financial centers and corporate offices. All of the Company’s leases are currently classified as operating. Most lease agreements include one or more options to renew, with renewal terms that can extend the original lease term from one to twenty years or more. The Company does not receive sublease income from any of its leased real estate properties.

The following table provides information regarding the Company's leases as of the dates indicated:

	Year Ended
	2021			2020
Components of lease expense:
Operating lease cost (resulting from lease payments)	$	12,304		$	12,453
Supplemental cash flow information related to leases:
Operating cash flows from operating leases	$	12,930		$	13,571
ROU assets obtained in the exchange for lease liabilities due to:
New leases	$	803		$	871
Acquisitions	$	—		$	7,720
	As of
	December 31, 2021			December 31, 2020
Supplemental balance sheet information related to leases:
Operating lease ROU assets	$	57,872		$	65,215
Operating lease liabilities	$	67,138		$	74,982
Other information related to leases:
Weighted average remaining lease term of operating leases	9.0 years			9.5 years
Weighted average discount rate of operating leases	2.92		%	3.04		%

The Company added two locations from the acquisition of RPJ during the first quarter of 2020. The associated new ROU assets obtained in exchange for lease obligations totaled $0.3 million.

97

On April 1, 2020, in conjunction with the acquisition of Revere, the Company added 15 additional operating leases (at 12 locations). The associated new ROU assets of $7.4 million obtained in exchange for lease obligations of $8.7 million was recorded at the close of the acquisition. The ROU assets recorded at acquisition included $1.1 million for acquisition related unfavorable fair value marks and a tenant allowance of $0.2 million. During the three months ended June 30, 2020, subsequent to and resulting from the acquisition, the Company determined that due to market overlap and other synergies, the Company would more likely than not terminate seven of the acquired leases, comprised of six branch locations and one office space location. The decision resulted in an impairment charge of $2.3 million, which was recorded to merger and acquisition expense in the Consolidated Statements of Income during the second quarter of 2020. The Company estimated the fair value of the leases to be equal to the cash payments remaining between the impairment date and the anticipated abandonment date. There was no impairment charge recorded during 2021.

As of December 31, 2021, the maturities of the Company’s operating lease liabilities were as follows:

(In thousands)	Amount
Maturity:
One year	$	11,493
Two years	11,484
Three years	9,580
Four years	7,758
Five years	6,924
Thereafter	30,571
Total undiscounted lease payments	77,810
Less: Present value discount	(10,672)
Lease Liability	$	67,138

The Company recognized a lease liability of $0.9 million and ROU asset of $0.7 million for one operating lease that has not yet commenced operations at December 31, 2021, and is expected to commence operations during the first quarter of 2022. This ROU asset includes approximately $0.1 million of tenant allowance for improvements to the space. The Company does not have any lease arrangements with any of its related parties as of December 31, 2021.

NOTE 9 – GOODWILL AND OTHER INTANGIBLE ASSETS

The gross carrying amounts and accumulated amortization of intangible assets and goodwill are presented at December 31 in the following table:

	2021						Weighted	2020						Weighted
	Gross				Net		Average	Gross				Net		Average
	Carrying		Accumulated		Carrying		Remaining	Carrying		Accumulated		Carrying		Remaining
(Dollars in thousands)	Amount		Amortization		Amount		Life	Amount		Amortization		Amount		Life
Amortizing intangible assets:
Core deposit intangibles	$	29,038	$	(12,624)	$	16,414	7.4 years	$	29,038	$	(7,969)	$	21,069	8.4 years
Other identifiable intangibles	13,906		(4,400)		9,506		9.7 years	13,906		(2,454)		11,452		10.7 years
Total amortizing intangible assets	$	42,944	$	(17,024)	$	25,920		$	42,944	$	(10,423)	$	32,521
Goodwill	$	370,223			$	370,223		$	370,223			$	370,223

98

The following table presents the net carrying amount of goodwill by segment for the periods indicated:

(In thousands)	Community Banking		Insurance		Investment Management		Total
Balance December 31, 2019	$	331,173	$	6,788	$	9,188	$	347,149
Acquisition of Rembert Pendleton Jackson	—		—		22,559		22,559
Acquisition of Revere Bank	515		—		—		515
Balance December 31, 2020	331,688		6,788		31,747		370,223
No Activity	—		—		—		—
Balance December 31, 2021	$	331,688	$	6,788	$	31,747	$	370,223

The following table presents the estimated future amortization expense for amortizing intangible assets within the years ending December 31:

(In thousands)	Amount
2022	$	5,844
2023	5,089
2024	4,333
2025	3,567
2026	2,732
Thereafter	4,355
Total amortizing intangible assets	$	25,920

NOTE 10 – DEPOSITS

The following table presents the composition of deposits at December 31 for the years indicated:

(In thousands)	2021		2020
Noninterest-bearing deposits	$	3,779,630	$	3,325,547
Interest-bearing deposits:
Demand	1,604,714		1,292,164
Money market savings	3,415,663		3,339,645
Regular savings	533,862		418,051
Time deposits of less than $250,000	910,464		1,180,636
Time deposits of $250,000 or more	380,398		477,026
Total interest-bearing deposits	6,845,101		6,707,522
Total deposits	$	10,624,731	$	10,033,069

Demand deposit overdrafts reclassified as loan balances were $1.8 million and $13.1 million at December 31, 2021 and 2020, respectively. Overdraft charge-offs and recoveries are reflected in the allowance for credit losses.

99

The following table presents the maturity schedule for time deposits maturing within years ending December 31:

(In thousands)	Amount
2022	$	1,002,132
2023	165,131
2024	89,074
2025	16,464
2026	17,881
Thereafter	180
Total time deposits	$	1,290,862

The Company's time deposits of less than $250,000 represented 8.6% of total deposits and time deposits of $250,000 or more represented 3.6% of total deposits at December 31, 2021 and are presented by maturity in the following table:

	Months to Maturity
(In thousands)	3 or Less		Over 3 to 6		Over 6 to 12		Over 12		Total
Time deposits - less than $250,000	$	277,975	$	226,476	$	215,245	$	190,768	$	910,464
Time deposits - $250,000 or more	$	88,510	$	93,719	$	100,207	$	97,962	$	380,398

Interest expense on time deposits of less than $250,000 amounted to $6.0 million, $16.5 million, and $20.8 million and interest expense on time deposits of $250,000 of more amounted to $3.0 million, $10.7 million, and $13.0 million for the years ended December 31, 2021, 2020 and 2019, respectively.

Deposits received in the ordinary course of business from the directors and officers of the Company and their related interests amounted to $89.5 million and $73.4 million for the years ended December 31, 2021 and 2020, respectively.

NOTE 11 – BORROWINGS

Subordinated Debt

On November 5, 2019, the Company completed an offering of $175.0 million aggregate principal amount Fixed to Floating Rate Subordinated Notes due in 2029. The notes bear a fixed interest rate of 4.25% per year through November 14, 2024. Beginning November 15, 2024, the interest rate will become a floating rate equal to three-month LIBOR, or an alternative benchmark rate as determined pursuant to the terms of the indenture for the notes in the event LIBOR has been discontinued by November 15, 2024, plus 262 basis points through the remaining maturity or early redemption date of the notes. The interest will be paid in arrears semi-annually during the fixed rate period and quarterly during the floating rate period. The Company incurred $2.9 million of debt issuance costs which are being amortized through the contractual life of the debt. The entire amount of subordinated debt is considered Tier 2 capital under current regulatory guidelines.

In conjunction with the acquisition of WashingtonFirst Bankshares, Inc. ("WashingtonFirst"), the Company assumed $25.0 million in subordinated debt with an associated purchase premium at acquisition of $2.2 million. The premium was amortized over the contractual life of the obligation. The subordinated debt had a maturity of 10 years, maturing on October 15, 2025, and was non-callable through October 15, 2020. The subordinated debt held a fixed interest rate of 6.00% per annum through October 5, 2020 at which point the rate became variable at the three-month LIBOR plus 457 basis points payable quarterly. On July 15, 2021, the Company redeemed the entire outstanding principal balance of the WashingtonFirst subordinated debt.

In conjunction with the acquisition of Revere, the Company assumed $31.0 million in subordinated debt with an associated purchase premium at acquisition of $0.2 million, which was amortized through the call date. The subordinated debt had a 10-year term, maturing on September 30, 2026, and was non-callable until September 30, 2021. The subordinated debt had a fixed interest rate of 5.625% per annum, payable semi-annually, through September 30, 2021 at which point the interest rate reset quarterly to an amount equal to three month LIBOR plus 441 basis points. On September 30, 2021, the Company redeemed the entire outstanding principal balance of the Revere subordinated debt.

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The Company assumed $10.3 million in callable junior subordinated debt securities with an associated purchase premium at acquisition of $0.1 million in conjunction with the acquisition of WashingtonFirst. During the first quarter of 2020, the Company redeemed all $10.3 million of the outstanding principal balance of the callable junior subordinated debt securities.

The following table provides information on subordinated debentures for the period indicated:

(In thousands)	2021		2020
Fixed to floating rate sub debt, 4.25%	$	175,000	$	175,000
WashingtonFirst sub debt	—		25,000
Revere fixed to floating rate sub debt	—		31,000
Total subordinated debt	175,000		231,000
Less: Subordinated debt held as investments by Sandy Spring	—		(3,000)
Add: Purchase accounting premium	—		1,669
Less: Debt issuance costs	(2,288)		(2,581)
Net subordinated debt	172,712		227,088
Long-term borrowings	$	172,712	$	227,088

Other Borrowings

Information relating to retail repurchase agreements and federal funds purchased is presented in the following table at and for the years ending December 31:

	2021				2020
(Dollars in thousands)	Amount		Rate		Amount		Rate
End of period:
Retail repurchase agreements	$	141,086	0.12	%	$	153,157	0.11	%
Federal funds purchased	—		—		390,000		0.10
Average for the year:
Retail repurchase agreements	$	143,734	0.12	%	$	142,283	0.32	%
Federal funds purchased	15,154		0.08		367,240		0.41
Maximum month-end balance:
Retail repurchase agreements	$	154,413			$	153,157
Federal funds purchased	60,000				921,289

The Company pledges U.S. Agencies securities, based upon their market values, as collateral for greater than 102.5% of the principal of its retail repurchase agreements.

At December 31, 2021, the Company had an available line of credit with the FHLB under which its borrowings are limited to $3.9 billion based on pledged collateral at prevailing market interest rates, with no outstanding borrowings against it. At December 31, 2020, lines of credit totaled $3.0 billion based on pledged collateral with $379.1 million borrowed against the line. During the year ended December 31, 2021, the Company early repaid $279.0 million of FHLB advances, resulting in a prepayment penalty of $9.1 million, which was recorded in other non-interest expense in the Consolidated Statements of Income.

Under a blanket lien, the Company has pledged qualifying residential mortgage loans amounting to $829.1 million, commercial real estate loans amounting to $3.1 billion, home equity lines of credit (“HELOC”) amounting to $224.4 million and multifamily loans amounting to $333.4 million at December 31, 2021 as collateral under the borrowing agreement with the FHLB. At December 31, 2020, the Company had pledged collateral of qualifying mortgage loans of $1.0 billion, commercial real estate loans of $2.8 billion, HELOC loans of $226.2 million and multifamily loans of $237.6 million under the FHLB borrowing agreement.

The Company also had secured lines of credit available from the Federal Reserve and correspondent banks of $509.4 million and $276.2 million at December 31, 2021 and 2020, respectively, collateralized by loans, with no borrowings outstanding at the end of either period. In addition, the Company had unsecured lines of credit with correspondent banks of $1.3 billion and $1.1 billion at

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December 31, 2021 and 2020. Of the unsecured lines of credit available there were no outstanding borrowings at December 31, 2021 and $390.0 million outstanding borrowings at December 31, 2020.

At December 31, 2021, the Company did not have any borrowings outstanding under the Paycheck Protection Program Liquidity Facility ("PPPLF").

Advances from the FHLB and the respective maturity schedule at December 31 for the years indicated consisted of the following:

	2021				2020
(Dollars in thousands)	Amounts		Weighted Average Rate		Amounts		Weighted Average Rate
Maturity:
One year	$	—	—	%	$	230,243	2.39	%
Two years	—		—		76,332		2.37
Three years	—		—		72,500		3.12
Four years	—		—		—		—
Five years	—		—		—		—
After five years	—		—		—		—
Total advances from FHLB	$	—	—		$	379,075	2.52

NOTE 12 – STOCKHOLDERS’ EQUITY

The Company’s Articles of Incorporation authorize 100,000,000 shares of capital stock (par value $1.00 per share). Issued shares have been classified as common stock. The Articles of Incorporation provide that remaining unissued shares may later be designated as either common or preferred stock.

The Company maintains an employee stock purchase plan (the “Purchase Plan”) that enables employees to purchase up to $25,000 of Company common stock each year at a discount. The Purchase Plan, which was initially authorized on July 1, 2011, was amended and restated as of November 18, 2020. As part of the amendment and restatement, an additional 700,000 shares of common stock were reserved to be issued, which is in addition to the 300,000 shares of common stock authorized for purchase under the previous version of the Purchase Plan. Under the Purchase Plan, shares are purchased at 85% of the lower of the fair market value of the common stock on the offering date or the purchase date, as defined in the Purchase Plan. Contributions are made through monthly payroll deductions of not less than 1% or more than 10% of cash compensation paid in the month. The Purchase Plan is administered by a committee of at least three directors appointed by the board of directors. At December 31, 2021, there were 647,455 shares available for issuance under this Purchase Plan.

In December 2020, the Company's board of directors authorized a stock repurchase plan that permits the repurchase of up to 2,350,000 shares of common stock. During 2021, the Company repurchased and retired all 2,350,000 shares of common stock at an average price of $45.65 per share for a total cost of $107.3 million. Under the previous stock repurchase plan that was approved in 2018 and expired in December 2020, the Company was authorized to repurchase up to 1,800,000 shares. During 2020, the Company repurchased and retired 820,328 common shares for the total cost of $25.7 million. Cumulatively under the previous plan, as of December 31, 2020, the Company repurchased and retired 1,488,519 shares of its common stock at an average price of $33.58 per share for a total cumulative cost of $50.0 million.

The Company has a dividend reinvestment plan that is sponsored and administered by Computershare as independent agent, which enables current shareholders as well as first-time buyers to purchase and sell common stock of Sandy Spring Bancorp, Inc. directly through Computershare. Participants may reinvest cash dividends and make periodic supplemental cash payments to purchase additional shares.

Bank and bank holding company regulations, as well as Maryland law, impose certain restrictions on dividend payments by the Bank, as well as restrictions on extensions of credit and transfers of assets between the Bank and the Company. At December 31, 2021, the

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Bank could have paid additional dividends of $126.6 million to its parent company without regulatory approval. There were no loans outstanding between the Bank and the Company at December 31, 2021 and 2020, respectively.

NOTE 13 – SHARE BASED COMPENSATION

At December 31, 2021, the Company had two share based compensation plans in existence, the 2005 Omnibus Stock Plan (“Omnibus Stock Plan”) and the 2015 Omnibus Incentive Plan (“Omnibus Incentive Plan”). The Omnibus Stock Plan expired during the second quarter of 2015 but has outstanding options that may still be exercised. The Omnibus Incentive Plan is described in the following paragraph.

The Company’s Omnibus Incentive Plan was approved on May 6, 2015 and provides for the granting of incentive stock options, non-qualifying stock options, stock appreciation rights, restricted stock awards ("RSAs"), restricted stock units ("RSUs") and performance share units ("PSUs") to selected directors and employees on a periodic basis at the discretion of the Company’s board of directors. The Omnibus Incentive Plan authorizes the issuance of up to 1,500,000 shares of common stock, of which 794,433 shares are available for issuance at December 31, 2021, has a term of ten years, and is administered by a committee of at least three directors appointed by the board of directors. Awards of share-based compensation typically vest in equal increments either over three or five year vesting periods on the grant date anniversary. Settlement of share-based incentive awards is generally through the issuance of previously unissued shares of common stock. The Company discontinued issuing stock options in 2018.

The value associated with the grant of RSAs is determined by multiplying the fair market value of the Company's common stock on the grant date by the number of shares awarded. Employees have the right to vote the shares and receive cash or stock dividends for the unvested RSAs. Non-vested shares of restricted stock awards are considered participating securities that have an immaterial impact on the computation of earnings per share. Any non-vested shares are subject to forfeiture upon termination of employment. A portion of the total RSAs granted in 2019 were based on the relative market performance of the Company's stock with another portion based on the financial performance of the Company. Compensation expense for awards based on the market performance of the Company's stock is based on their fair value determined using a probability based Monte-Carlo simulation valuation model. The expense on those awards is recognized regardless of whether the criteria for vesting is achieved. Compensation expense related to the achievement of performance criteria is variable and based on the fair market value of the Company's common stock and an assessment of the probability of achieving specified metrics and is adjusted periodically. Ultimately, the number of awards that vest can range from zero to 150% of the grant amount based on the achievement level compared to the specified performance or market-based criteria.

PSUs may be granted annually and are subject to the Company's achievement of specified performance criteria over a three year period. The value of the PSU grant is determined by multiplying the fair market value of the Company's common stock on the grant date by the total initial number of shares awarded. A portion of the total PSUs granted in 2020 were based on the relative market performance of the Company's stock with another portion based on the financial performance of the Company. Compensation expense for awards based on the market performance of the Company's stock is based on their fair value determined using a probability based Monte-Carlo simulation valuation model. The expense on those awards is recognized regardless of whether the criteria for vesting is achieved. Compensation expense related to the achievement of specified performance criteria is variable and based on the fair market value of the Company's common stock and an assessment of the probability of achieving specified metrics and is adjusted periodically. Beginning in 2021, the PSU's granted annually are based on the Company's return on tangible common equity ("ROTCE") compared to a specified peer group's ROTCE over a three year period. The number of awards that vest can range from zero to 150% of the grant amount based on the achievement level compared to the specified performance or market-based criteria. Dividends that accrue during the vesting period are reinvested in dividend equivalent share units. PSUs and the related dividend equivalent share units are converted into shares of common stock at vesting. Upon qualifying employee retirement, shares can continue to vest through the initial grant period should the vesting criteria continue to be met. PSUs are not considered participating securities and do not impact the computation of earnings per share.

Options granted under the plan have an exercise price which may not be less than 100% of the fair market value of the common stock on the date of the grant and must be exercised within seven to ten years from the date of grant depending on the terms of the grant agreement. The exercise price of stock options must be paid for in full in cash or shares of common stock, or a combination of both. The board committee has the discretion when making a grant of stock options to impose restrictions on the shares to be purchased upon the exercise of such options. The Company generally issues authorized but previously unissued shares to satisfy option exercises. Compensation expense is based on the fair value of the options using the following assumptions in the Black-Scholes binomial option-pricing model. The dividend yield is based on the estimated future dividend yields. The risk-free rate for periods within the

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contractual term of the share option is based on the U.S. Treasury yield curve in effect at the time of the grant. Expected volatility is generally based on historical volatility. The expected term of share options granted is generally derive from historical experience.

All stock compensation expense is recognized on a straight-line basis over the vesting period of the respective stock option, restricted stock, restricted stock unit grants or performance share units. Compensation associated with the performance share units is variable in nature based on the probability of achieving specific criteria. Compensation expense of $5.3 million, $3.9 million, and $2.9 million was recognized for the years ended December 31, 2021, 2020 and 2019, respectively, related to the awards of stock options, restricted stock grants, restricted stock unit grants and performance share unit grants. The intrinsic value for the stock options exercised was $8.0 million, $0.4 million, and $0.2 million in the years ended December 31, 2021, 2020 and 2019, respectively. There was no unrecognized compensation cost related to stock options at December 31, 2021. The total of unrecognized compensation cost related to restricted stock awards, restricted stock unit grants, and performance share unit grants was approximately $8.2 million at December 31, 2021. That cost is expected to be recognized over a weighted average period of approximately 2.1 years.

During the year ended December 31, 2021, the Company granted 128,557 restricted shares, restricted stock units and performance share units under the Omnibus Incentive Plan, of which 32,728 units are subject to achievement of certain performance conditions measured over a three-year performance period and 95,829 are restricted shares or units subject to a three year vesting schedule.

A summary of share option activity for the period indicated is reflected in the following table:

	Number of Common Shares	Weighted Average Exercise Share Price		Weighted Average Contractual Remaining Life (Years)	Aggregate Intrinsic Value (in thousands)
Balance at January 1, 2021	430,038	$	14.97		$	6,828
Granted	—	$	—
Exercised	(270,297)	$	13.67		$	7,979
Forfeited	—	$	—
Expired	—	$	—
Balance at December 31, 2021	159,741	$	17.18	2.4 years	$	5,264
Exercisable at December 31, 2021	159,741	$	17.18	2.4 years	$	5,264

A summary of the activity for the Company’s restricted stock for the period indicated is presented in the following table:

(In dollars, except share data):	Number of Common Shares	Weighted Average Grant-Date Fair Value
Restricted stock at January 1, 2021	391,683	$	29.50
Granted	128,557	$	41.05
Vested	(119,228)	$	31.48
Forfeited/ cancelled	(10,492)	$	31.93
Restricted stock at December 31, 2021	390,520	$	32.67

NOTE 14 – PENSION, PROFIT SHARING, AND OTHER EMPLOYEE BENEFIT PLANS

Defined Benefit Pension Plan

The Company has a qualified, noncontributory, defined benefit pension plan (the “Pension Plan”) covering substantially all employees. All benefit accruals for employees were frozen as of December 31, 2007 based on past service and thus future salary increases and additional years of service will no longer affect the defined benefit provided by the Pension Plan although additional vesting may continue to occur.

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Several factors affect the net periodic benefit cost of the plan, including (1) the size and characteristics of the plan population, (2) the discount rate, (3) the expected long-term rate of return on plan assets and (4) other actuarial assumptions. Pension cost is directly related to the number of employees covered by the plan and other factors including salary, age, years of employment, and the terms of the plan. As a result of the plan freeze, the characteristics of the plan population should not have a materially different effect in future years. The discount rate is used to determine the present value of future benefit obligations. The discount rate is determined by matching the expected cash flows of the plan to a yield curve based on long term, high quality fixed income debt instruments available as of the measurement date, which is December 31 of each year. The discount rate is adjusted each year on the measurement date to reflect current market conditions. The expected long-term rate of return on plan assets is based on a number of factors that include expectations of market performance and the target asset allocation adopted in the plan investment policy. Should actual asset returns deviate from the projected returns, this can affect the benefit plan expense recognized in the financial statements.

The Company's funding policy is to contribute amounts to the Pension Plan sufficient to meet the minimum funding requirements of the Employee Retirement Income Security Act of 1974 (“ERISA”), as amended. In addition, the Company contributes additional amounts as it deems appropriate based on benefits attributed to service prior to the date of the Pension Plan freeze. The Pension Plan invests primarily in a diversified portfolio of managed fixed income and equity funds.

The Pension Plan’s funded status at December 31 is as follows:

(In thousands)	2021		2020
Reconciliation of Projected Benefit Obligation:
Projected obligation at January 1	$	52,426	$	45,497
Interest cost	1,269		1,437
Actuarial (gain)/ loss	(22)		290
Benefit payments	(1,115)		(1,470)
Increase/ (decrease) related to change in assumptions	(2,040)		6,672
Settlement - lump sum payments	(2,439)		—
Projected obligation at December 31	48,079		52,426
Reconciliation of Fair Value of Plan Assets:
Fair value of plan assets at January 1	48,357		43,457
Actual return on plan assets	(596)		6,370
Employer contributions	1,000		—
Benefit payments	(1,115)		(1,470)
Settlement - lump sum payments	(2,439)		—
Fair value of plan assets at December 31	$	45,207	$	48,357
Funded status at December 31	$	(2,872)	$	(4,069)
Accumulated benefit obligation at December 31	$	48,079	$	52,426
Unrecognized net actuarial loss	$	11,030	$	12,719
Net periodic pension cost not yet recognized	$	11,030	$	12,719

Weighted average assumptions used to determine benefit obligations at December 31 are presented in the following table:

	2021	2020	2019
Discount rate	2.80%	2.50%	3.25%
Rate of compensation increase	N/A	N/A	N/A

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The components of net periodic benefit cost for the years ended December 31 are presented in the following table:

(In thousands)	2021		2020		2019
Interest cost on projected benefit obligation	$	1,269	$	1,437	$	1,609
Expected return on plan assets	(1,247)		(1,821)		(1,647)
Recognized net actuarial loss	909		874		1,059
Settlement charge	560		—		—
Net periodic benefit cost	$	1,491	$	490	$	1,021

Components of the net periodic benefit cost are recorded in salaries and employee benefits expense in the Consolidated Statement of Income.

Weighted average assumptions used to determine net periodic benefit cost for years ended December 31 are presented in the following table:

	2021	2020	2019
Discount rate	2.50%	3.25%	4.15%
Expected return on plan assets	3.25%	4.75%	5.00%
Rate of compensation increase	N/A	N/A	N/A

The expected rate of return on assets of 3.25% reflects the Pension Plan’s predominant investment of assets in fixed income mutual funds and was developed as a weighted average rate based on the target asset allocation of the Plan. Key economic inputs used included future inflation, economic growth, and interest rate environment.

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The following table reflects the components of the net unrecognized benefits costs that is reflected in accumulated other comprehensive income/ (loss) for the periods indicated. Additions/ reductions represent the change in the unrecognized actuarial gain/ loss during the period. Reclassifications represent the portion of the unrecognized benefits that are recognized each period as a component of the net periodic benefit cost.

(In thousands)	Unrecognized Net Loss
Included in accumulated other comprehensive loss at January 1, 2019	$	12,352
Reductions during the year	(5,176)
Reclassifications due to recognition as net periodic pension cost	(1,059)
Increase related to change in assumptions	5,060
Included in accumulated other comprehensive loss as of December 31, 2019	11,177
Reductions during the year	(4,256)
Reclassifications due to recognition as net periodic pension cost	(874)
Increase related to change in assumptions	6,672
Included in accumulated other comprehensive loss as of December 31, 2020	12,719
Additions during the year	1,842
Reclassifications due to recognition as net periodic pension cost	(909)
Settlement charge	(560)
Decrease related to change in assumptions	(2,062)
Included in accumulated other comprehensive loss as of December 31, 2021	11,030
Applicable tax effect	(2,827)
Included in accumulated other comprehensive loss net of tax effect at December 31, 2021	$	8,203
Amount expected to be recognized as part of net periodic pension cost in the next fiscal year	$	674

There are no plan assets expected to be returned to the employer in the next twelve months.

The following items have not yet been recognized as a component of net periodic benefit cost at December 31:

(In thousands)	2021		2020		2019
Net actuarial loss	$	11,030	$	12,719	$	11,177
Net periodic benefit cost not yet recognized	$	11,030	$	12,719	$	11,177

Pension Plan Assets

The Company’s Pension Plan weighted average allocations at December 31 are presented in the following table:

	2021		2020
Asset Category:
Equity Securities Mutual Funds	11.5	%	11.6	%
Fixed Income Mutual Funds	88.5	%	88.4	%
Total pension plan assets	100.0	%	100.0	%

The Company has a written investment policy approved by the board of directors that governs the investment of the defined benefit pension fund trust portfolio. The investment policy is designed to provide limits on risk that is undertaken by the investment managers both in terms of market volatility of the portfolio and the quality of the individual assets that are held in the portfolio. The investment

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policy statement focuses on the following areas of concern: preservation of capital, diversification, risk tolerance, investment duration, rate of return, liquidity, and investment management costs.

The Company has constituted the Retirement Plans Investment Committee (“RPIC”) in part to monitor the investments of the Pension Plan as well as to recommend to executive management changes in the Investment Policy Statement which governs the Pension Plan’s investment operations. These recommendations include asset allocation changes based on a number of factors including the investment horizon for the Pension Plan. The Company uses outside third parties to advise RPIC on the Pension Plan’s investment matters.

Investment strategies and asset allocations are based on careful consideration of Pension Plan liabilities, the Pension Plan’s funded status and the Company’s financial condition. Investment performance and asset allocation are measured and monitored on an ongoing basis. Management allocates plan assets towards fixed income securities in order to align expected cash outflows with its funding source. This asset allocation has been set after taking into consideration the Pension Plan’s current frozen status and the possibility of partial plan terminations over the intermediate term. The Pension Plan’s asset allocation remained consistent during the current year.

Market volatility risk is controlled by limiting the asset allocation of the most volatile asset class, equities, to no more than 70% of the portfolio and by ensuring that there is sufficient liquidity to meet distribution requirements from the portfolio without disrupting long-term assets. Diversification of the equity portion of the portfolio is controlled by limiting the value of any initial acquisition so that it does not exceed 5% of the market value of the portfolio when purchased. The policy requires the sale of any portion of an equity position when its value exceeds 10% of the portfolio. Fixed income market volatility risk is managed by limiting the term of fixed income investments to five years. Fixed income investments must carry an “A” or better rating by a recognized credit rating agency. Corporate debt of a single issuer may not exceed 10% of the market value of the portfolio. The investment in derivative instruments such as “naked” call options, futures, commodities, and short selling is prohibited. Investment in equity index funds and the writing of “covered” call options (a conservative strategy to increase portfolio income) are permitted. Foreign currency-denominated debt instruments are not permitted. At December 31, 2021, management is of the opinion that there are no significant concentrations of risk in the assets of the plan with respect to any single entity, industry, country, commodity or investment fund that are not otherwise mitigated by the Federal Deposit Insurance Corporation ("FDIC") insurance available to the participants of the Pension Plan and collateral pledged for any such amount that may not be covered by FDIC insurance. Investment performance is measured against industry accepted benchmarks. The risk tolerance and asset allocation limitations imposed by the policy are consistent with attaining the rate of return assumptions used in the actuarial funding calculations. The RPIC committee meets quarterly to review the activities of the investment managers to ensure adherence with the Investment Policy Statement.

Fair Values

The fair values of the Company’s Pension Plan assets by asset category at December 31 are presented in the following tables:

	2021
(In thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Asset Category:
Mutual funds:
Large cap U.S. equity funds	$	2,231	$	575	$	—	$	2,806
Small/Mid cap U.S. equity funds	—		1,536		—		1,536
International equity funds	875		—		—		875
Short-term fixed income funds	9,558		30,432		—		39,990
Total mutual funds	12,664		32,543		—		45,207
Total pension plan assets	$	12,664	$	32,543	$	—	$	45,207

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	2020
(In thousands)	Quoted Prices In Active Markets for  Identical Assets  (Level 1)		Significant Other  Observable  Inputs  (Level 2)		Significant Unobservable  Inputs  (Level 3)		Total
Asset Category:
Mutual funds:
Large cap U.S. equity funds	$	2,779	$	543	$	—	$	3,322
Small/Mid cap U.S. equity funds	—		1,124		—		1,124
International equity funds	1,183		—		—		1,183
Short-term fixed income funds	—		4,299		—		4,299
Fixed income funds	10,724		27,705		—		38,429
Total mutual funds	14,686		33,671		—		48,357
Total pension plan assets	$	14,686	$	33,671	$	—	48,357

Contributions

The decision as to whether or not to make a plan contribution and the amount of any such contribution is dependent on a number of factors. Such factors include the investment performance of the plan assets in the current economy and, since the Pension Plan is currently frozen, the remaining investment horizon of the Pension Plan. After consideration of these factors, the Company made a $1.0 million contribution in 2021. Management continues to monitor the funding level of the Pension Plan and may make contributions as necessary during 2022.

Estimated Future Benefit Payments

Benefit payments, which reflect expected future service, as appropriate, that are expected to be paid for the years ending December 31 are presented in the following table:

(In thousands)	Pension Benefits
2022	$	3,210
2023	1,990
2024	3,240
2025	2,330
2026	3,160
Thereafter	14,540

Sandy Spring Bank 401(k) Plan

The Sandy Spring Bank 401(k) Plan (“the 401(k)”) is voluntary and covers all eligible employees after 90 days of service. The 401(k) provides that employees contributing to the 401(k) receive a matching contribution of 100% of the first 4% of compensation and 50% of the next 2% of compensation subject to employee contribution limitations. The Company matching contribution vests immediately. The 401(k) permits employees to purchase shares of the Company’s common stock with their 401(k) contributions, Company match, and other contributions under the 401(k). The Company’s matching contribution to the 401(k), which is included in salaries and employee benefits in non-interest expenses in the Consolidated Statements of Income, totaled $6.0 million, $5.3 million, and $4.1 million in 2021, 2020 and 2019, respectively.

Executive Incentive Retirement Plan

The Executive Incentive Retirement Plan ("Executive Plan") is a non-qualified deferred compensation defined contribution plan that provides for contributions to be made to the participants’ plan accounts based on the attainment of a level of financial performance compared to a selected group of peer banks. This level of performance is determined annually by the board of directors. Benefit costs related to the Executive Plan included in salaries and employee benefits in non-interest expenses in the Consolidated Statements of Income for 2021, 2020 and 2019 were $0.7 million, $0.6 million, and $0.5 million, respectively.

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NOTE 15 – OTHER NON-INTEREST INCOME AND OTHER NON-INTEREST EXPENSE

Selected components of other non-interest income and other non-interest expense for the years ended December 31 are presented in the following table:

(In thousands)	2021		2020		2019
Letter of credit fees	$	910	$	710	$	389
Extension fees	811		1,967		1,287
Swap fee income	511		1,607		1,932
Prepayment penalty fees	3,216		961		404
Other income	9,869		3,976		4,768
Total other non-interest income	$	15,317	$	9,221	$	8,780

(In thousands)	2021		2020		2019
Postage and delivery	$	1,906	$	1,624	$	1,502
Communications	2,508		2,729		2,414
Loss on FHLB redemption	9,117		5,928		—
Mortgage processing expense, net	1,504		1,381		817
Online services	2,209		1,591		1,375
Provision for credit losses on unfunded loan commitments	(1,236)		1,576		—
Franchise taxes	1,644		1,574		1,307
Insurance	1,586		1,311		1,113
Card transaction expense	1,183		1,083		1,031
Office supplies	742		912		957
Other expenses	13,229		10,894		9,910
Total other non-interest expense	$	34,392	$	30,603	$	20,426

NOTE 16 – INCOME TAXES

The following table provides the components of income tax expense for the years ended December 31:

(In thousands)	2021		2020		2019
Current income taxes:
Federal	$	48,445	$	43,115	$	28,404
State	15,850		13,785		6,598
Total current	64,295		56,900		35,002
Deferred income taxes:
Federal	9,634		(22,793)		234
State	2,623		(6,636)		1,192
Total deferred	12,257		(29,429)		1,426
Total income tax expense	$	76,552	$	27,471	$	36,428

The Company does not have uncertain tax positions that are deemed material, and did not recognize any adjustments for unrecognized tax benefits.

The Company is subject to U.S. federal income tax and income tax in various state jurisdictions. All tax years ending after December 31, 2017 are open to examination. The examination by the District of Columbia for the tax years 2017-2019 was finalized in 2021 with no adjustments.

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Temporary differences between the amounts reported in the financial statements and the tax bases of assets and liabilities result in deferred taxes. Deferred tax assets and liabilities, shown as the sum of the appropriate tax effect for each significant type of temporary difference, are presented in the following table at December 31 for the years indicated:

(In thousands)	2021		2020
Deferred tax assets:
Allowance for credit losses	$	27,980	$	42,231
Lease liability	17,280		19,192
Employee benefits	7,740		6,108
Unrealized losses on pension plan	2,827		3,249
Deferred loan fees and costs	3,879		4,486
Equity based compensation	1,636		1,856
Unrealized losses on investments available-for-sale	121		—
Losses on other real estate owned	21		203
Other than temporary impairment	76		75
Loan and deposit premium/discount	553		1,081
Reserve for recourse loans	223		546
Net operating loss carryforward	2,023		1,475
Other	207		181
Gross deferred tax assets	64,566		80,683
Valuation allowance	(2,137)		(1,479)
Net deferred tax asset	62,429		79,204
Deferred tax liabilities:
Right of use asset	(14,888)		(16,693)
Unrealized gains on investments available-for-sale	—		(9,684)
Pension plan costs	(2,092)		(2,211)
Depreciation	(2,552)		(2,950)
Intangible assets	(5,653)		(6,894)
Bond accretion	(78)		(195)
Section 481 adjustments	—		(669)
Fair value acquisition adjustments	(624)		(555)
Other	(626)		(567)
Gross deferred tax liabilities	(26,513)		(40,418)
Net deferred tax asset	$	35,916	$	38,786

The Company has approximately $29.9 million of state net operating loss carryover which begins to expire in 2032. The Company believes that it is more likely than not that the future benefit from the state net operating loss carryover will not be realized. As such, there is a valuation allowance on the deferred tax assets of the jurisdictions in which those net operating losses relate.

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The reconcilements between the statutory federal income tax rate and the effective rate for the years ended December 31 are presented in the following table:

(Dollars in thousands)	2021				2020				2019
	Amount		Percentage of Pre-Tax Income		Amount		Percentage of Pre-Tax Income		Amount		Percentage of Pre-Tax Income
Income tax expense at federal statutory rate	$	65,448	21.0	%	$	26,130	21.0	%	$	32,101	21.0	%
Increase/ (decrease) resulting from:
Tax exempt income, net	(2,271)		(0.7)		(2,472)		(2.0)		(2,101)		(1.4)
Bank-owned life insurance	(602)		(0.2)		(567)		(0.5)		(665)		(0.4)
State income taxes, net of federal income tax benefits	14,593		4.7		5,648		4.5		6,154		4.0
Federal tax law change	—		—		(1,764)		(1.4)		—		—
Other, net	(616)		(0.2)		496		0.5		939		0.6
Total income tax expense and rate	$	76,552	24.6	%	$	27,471	22.1	%	$	36,428	23.8	%

Under the CARES Act, which was enacted on March 27, 2020, net operating losses arising in tax years beginning after December 31, 2017, and before January 1, 2021 can be carried back five tax years preceding the tax year in which the loss originated. During the prior year, the Company utilized net operating losses acquired as a part of the 2018 WashingtonFirst acquisition. Following the passage of the CARES Act, the Company carried back WashingtonFirst's 2018 net operating loss to tax years 2013 through 2015. As a result, the Company recorded a tax benefit of $1.8 million for 2020 due to the federal statutory rates for the 2013, 2014 and 2015 tax years being higher than the 2018 tax year.

NOTE 17 – NET INCOME PER COMMON SHARE

The calculation of net income per common share for the years ended December 31 is presented in the following table:

(Dollars and amounts in thousands, except per share data)	2021		2020		2019
Net income	$	235,107	$	96,953	$	116,433
Less: Distributed and undistributed earnings allocated to participating securities	(1,508)		(783)		(762)
Net income attributable to common shareholders	$	233,599	$	96,170	$	115,671
Total weighted average outstanding shares	46,995		44,312		35,797
Less: Weighted average participating securities	(304)		(365)		(235)
Basic weighted average common shares	46,691		43,947		35,562
Dilutive weighted average common stock equivalents	208		185		56
Diluted weighted average common shares	46,899		44,132		35,618
Basic net income per common share	$	5.00	$	2.19	$	3.25
Diluted net income per common share	$	4.98	$	2.18	$	3.25
Anti-dilutive shares	—		17		9

NOTE 18 – ACCUMULATED OTHER COMPREHENSIVE INCOME/ (LOSS)

Comprehensive income/ (loss) is defined as net income plus transactions and other occurrences that are the result of non-owner changes in equity. For financial statements presented for the Company, non-owner changes are comprised of unrealized gains or losses on available-for-sale debt securities and any pension liability adjustments and do not have an impact on the Company’s net income. Realized gains and losses on available-for-sale debt securities and the amortization of net periodic benefit cost impact the Company's net income as discussed in the tables on the following page.

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The following table presents the activity in net accumulated other comprehensive income/ (loss) for the periods indicated:

(In thousands)	Unrealized Gains/ (Losses) on Investments Available-for-Sale		Defined Benefit Pension Plan		Total
Balance at January 1, 2019	$	(6,630)	$	(9,124)	$	(15,754)
Period change, net of tax	10,630		792		11,422
Balance at December 31, 2019	4,000		(8,332)		(4,332)
Period change, net of tax	24,175		(1,138)		23,037
Balance at December 31, 2020	28,175		(9,470)		18,705
Period change, net of tax	(28,511)		1,267		(27,244)
Balance at December 31, 2021	$	(336)	$	(8,203)	$	(8,539)

The following table provides the information on the reclassification adjustments out of accumulated other comprehensive income/ (loss) for the periods indicated:

	Year Ended December 31,
(In thousands)	2021		2020		2019
Unrealized gains/ (losses) on investments available-for-sale:
Affected line item in the Consolidated Statements of Income:
Investment securities gains	$	212	$	467	$	77
Income before taxes	212		467		77
Tax expense	(54)		(120)		(20)
Net income	$	158	$	347	$	57
Amortization of defined benefit pension plan items:
Affected line item in the Consolidated Statements of Income:
Recognized actuarial loss (1)	$	(909)	$	(874)	$	(1,059)
Settlement charge (1)	(560)		—		—
Income before taxes	(1,469)		(874)		(1,059)
Tax benefit	376		223		277
Net loss	$	(1,093)	$	(651)	$	(782)

(1)This amount is included in the computation of net periodic benefit cost, see Note 14.

NOTE 19 - DERIVATIVES

The Company enters into interest rate swaps to facilitate customer transactions and meet their financing needs. These swaps qualify as derivatives, but are not designated as hedging instruments. Interest rate swap contracts involve the risk of dealing with counterparties and their ability to meet contractual terms. When the fair value of a derivative instrument contract is positive, this generally indicates that the counterparty or customer owes the Company, and results in credit risk to the Company. When the fair value of a derivative instrument contract is negative, the Company owes the customer or counterparty and therefore, has no credit risk. The swap positions are offset to minimize the potential impact on the Company’s financial statements. Credit risk exists if the borrower’s collateral or financial condition indicates that the underlying collateral or financial condition of the borrower makes it probable that amounts due will be uncollectible. Any amounts due to the Company will be expected to be collected from the borrower. Management reviews this credit exposure on a quarterly basis. At December 31, 2021 and 2020, all loans associated with the swap agreements were determined to be “pass” rated credits as provided by regulatory guidance and therefore no component of credit loss was factored into the valuation of the swaps.

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A summary of the Company’s interest rate swaps at December 31 for the years indicated is included in the following table:

	2021
(Dollars in thousands)	Notional Amount		Estimated Fair Value		Years to Maturity	Receive Rate		Pay Rate
Interest rate swap agreements:
Pay fixed/receive variable swaps	$	198,126	$	(5,880)	8.7 years	2.21	%	3.73	%
Pay variable/receive fixed swaps	198,126		5,880		8.7 years	3.73	%	2.21	%
Total swaps	$	396,252	$	—	8.7 years	2.97	%	2.97	%

	2020
(Dollars in thousands)	Notional Amount		Estimated Fair Value		Years to Maturity	Receive Rate		Pay Rate
Interest rate swap agreements:
Pay fixed/receive variable swaps	$	160,261	$	(9,183)	8.7 years	2.39	%	3.72	%
Pay variable/receive fixed swaps	160,261		9,183		8.7 years	3.72	%	2.39	%
Total swaps	$	320,522	$	—	8.7 years	3.06	%	3.06	%

The estimated fair value of the swaps at December 31 for the periods indicated in the table above were recorded in other assets and other liabilities in the Consolidated Statements of Financial Condition. The associated net gains and losses on the swaps are recorded in other non-interest income in the Consolidated Statement of Income.

NOTE 20 – FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK

In the normal course of business, the Company has various outstanding credit commitments that are not reflected in the financial statements. These commitments are made to satisfy the financing needs of the Company's clients. The associated credit risk is controlled by subjecting such activity to the same credit and quality controls as exist for the Company's lending and investing activities. The commitments involve diverse business and consumer customers and are generally well collateralized. Collateral held varies, but may include residential real estate, commercial real estate, property and equipment, inventory and accounts receivable. Commitments do not necessarily represent future cash requirements as a portion of the commitments have some reduced likelihood of being exercised. Additionally, many of the commitments are subject to annual reviews, material change clauses or requirements for inspections prior to draw funding that could result in a curtailment of the funding commitments.

A summary of the financial instruments with off-balance sheet credit risk is as follows at December 31 for the years indicated:

(In thousands)	2021		2020
Commercial real estate development and construction	$	621,725	$	871,290
Residential real estate-development and construction	885,806		94,096
Real estate-residential mortgage	54,072		335,288
Lines of credit, principally home equity and business lines	2,096,874		1,947,706
Standby letters of credit	70,642		71,777
Total commitments to extend credit and available credit lines	$	3,729,119	$	3,320,157

As of December 31, 2021, the total reserve for unfunded commitments was $0.3 million as compared to $1.6 million at December 31, 2020, and is accounted for in other liabilities in the Consolidated Statements of Financial Condition. See Note 1 for more information on the accounting policy for the allowance for unfunded commitments.

NOTE 21 – LITIGATION

The Company and its subsidiaries are subject in the ordinary course of business to various pending or threatened legal proceedings in which claims for monetary damages are asserted. After consultation with legal counsel, management does not anticipate that the

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ultimate liability, if any, arising out of currently pending legal proceedings will have a material adverse effect on the Company’s financial condition, operating results or liquidity.

NOTE 22 – FAIR VALUE

GAAP provides entities the option to measure eligible financial assets, financial liabilities and commitments at fair value (i.e. the fair value option), on an instrument-by-instrument basis, that are otherwise not permitted to be accounted for at fair value under other accounting standards. The election to use the fair value option is available when an entity first recognizes a financial asset or financial liability or upon entering into a commitment. Subsequent changes in fair value must be recorded in earnings. The Company applies the fair value option on residential mortgage loans held for sale. The fair value option on residential mortgage loans allows the recognition of gains on sale of mortgage loans to more accurately reflect the timing and economics of the transaction.

The standard for fair value measurement establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below.

Basis of Fair Value Measurement:

Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

Level 2 - Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability.

Level 3 - Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e. supported by little or no market activity).

A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement.

Changes to interest rates may result in changes in the cash flows due to prepayments or extinguishments. Accordingly, this could result in higher or lower measurements of the fair values.

Assets and Liabilities

Residential mortgage loans held for sale

Residential mortgage loans held for sale are valued based on quotations from the secondary market for similar instruments and are classified as Level 2 in the fair value hierarchy.

Investments available-for-sale

U.S. treasuries and government agencies securities and mortgage-backed and asset-backed securities

Valuations are based on active market data and use of evaluated broker pricing models that vary based by asset class and includes available trade, bid, and other market information. Generally, the methodology includes broker quotes, proprietary models, descriptive terms, and databases coupled with extensive quality control programs. Quality control evaluation processes use available market, credit and deal level information to support the evaluation of the security. Additionally, proprietary models and pricing systems, mathematical tools, actual transacted prices, integration of market developments and experienced evaluators are used to determine the value of a security based on a hierarchy of market information regarding a security or securities with similar characteristics. The Company does not adjust the quoted price for such securities. Such instruments are classified within Level 2 in the fair value hierarchy.

State and municipal securities

The Company primarily uses prices obtained from third-party pricing services to determine the fair value of state and municipal securities. The Company independently evaluates and corroborates the fair value received from pricing services through various methods and techniques, including references to dealer or other market quotes, by reviewing valuations of comparable instruments, and by comparing the prices realized on the sale of similar securities. Such securities are classified within Level 2 in the fair value hierarchy.

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Corporate debt

The fair value of corporate debt is determined by utilizing a discounted cash flow valuation technique employed by a third-party valuation specialist. The third-party specialist uses assumptions related to yield, prepayment speed, conditional default rates and loss severity based on certain factors such as, credit worthiness of the counterparty, prevailing market rates, and analysis of similar securities. The Company evaluates the fair values provided by the third-party specialist for reasonableness and classifies them as level 3 in the fair value hierarchy.

Interest rate swap agreements

Interest rate swap agreements are measured by alternative pricing sources using a discounted cash flow method that incorporates current market interest rates. Based on the complex nature of interest rate swap agreements, the markets these instruments trade in are not as efficient and are less liquid than that of the more mature Level 1 markets. These characteristics classify interest rate swap agreements as Level 2 in the fair value hierarchy.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following tables set forth the Company’s financial assets and liabilities at the December 31 for the years indicated that were accounted for or disclosed at fair value. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement:

	2021
(In thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Assets
Residential mortgage loans held for sale (1)	$	—	$	39,409	$	—	$	39,409
Investments available-for-sale:
U.S. government agencies	—		68,539		—		68,539
State and municipal	—		326,402		—		326,402
Mortgage-backed and asset-backed	—		1,070,955		—		1,070,955
Corporate debt	—		—		—		—
Total available-for-sale securities	—		1,465,896		—		1,465,896
Interest rate swap agreements	—		5,880		—		5,880
Total assets	$	—	$	1,511,185	$	—	$	1,511,185
Liabilities
Interest rate swap agreements	$	—	$	(5,880)	$	—	$	(5,880)
Total liabilities	$	—	$	(5,880)	$	—	$	(5,880)

(1)The outstanding principal balance for residential loans held for sale as of December 31, 2021 was $38.2 million.

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	2020
(In thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Assets
Residential mortgage loans held for sale (1)	$	—	$	78,294	$	—	$	78,294
Investments available-for-sale:
U.S. government agencies	—		43,297		—		43,297
State and municipal	—		390,367		—		390,367
Mortgage-backed and asset-backed	—		904,432		—		904,432
Corporate debt	—		—		9,925		9,925
Total available-for-sale securities	—		1,338,096		9,925		1,348,021
Interest rate swap agreements	—		9,183		—		9,183
Total assets	$	—	$	1,425,573	$	9,925	$	1,435,498
Liabilities
Interest rate swap agreements	$	—	$	(9,183)	$	—	$	(9,183)
Total liabilities	$	—	$	(9,183)	$	—	$	(9,183)

(1)The outstanding principal balance for residential loans held for sale as of December 31, 2020 was $75.5 million.

The fair value of investments transferred or that are purchased and placed in Level 3 is estimated by discounting the expected future cash flows using the current rates for investments with similar credit ratings and similar remaining maturities. Expected cash flows were projected based on contractual cash flows.

The following table provides activity of assets reported as Level 3 for the period indicated:

	Significant
	Unobservable
	Inputs
(In thousands)	(Level 3)
Investments available-for-sale:
Balance at January 1, 2021	$	9,925
Transfer into Level 3 assets	—
Additions of Level 3 assets	—
Sales of Level 3 assets	(9,925)
Balance at December 31, 2021	$	—

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Assets Measured at Fair Value on a Non-recurring Basis

The following tables set forth the Company’s financial assets subject to fair value adjustments on a non-recurring basis at December 31 for the year indicated that are valued at the lower of cost or market. Assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement:

	2021
(In thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total		Total Losses
Loans (1)	$	—	$	—	$	404	$	404	$	(1,353)
Other real estate owned	—		—		1,034		1,034		(81)
Total	$	—	$	—	$	1,438	$	1,438	$	(1,434)

(1)Amounts represent the fair value of collateral for collateral dependent non-accrual loans allocated to the allowance for credit losses. Fair values are determined using actual market prices (Level 2), independent third party valuations and borrower records, discounted as appropriate (Level 3).

	2020
(In thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total		Total Losses
Loans (1)	$	—	$	—	$	13,901	$	13,901	$	(11,326)
Other real estate owned	—		—		1,455		1,455		(286)
Total	$	—	$	—	$	15,356	$	15,356	$	(11,612)

(1)Amounts represent the fair value of collateral for collateral dependent non-accrual loans allocated to the allowance for credit losses. Fair values are determined using actual market prices (Level 2), independent third party valuations and borrower records, discounted as appropriate (Level 3).

At December 31, 2021, loans totaling $33.5 million were written down to fair value of $26.9 million as a result of individual credit loss allowances of $6.6 million associated with the collateral dependent non-accrual loans which was included in the allowance for credit losses. Loans totaling $97.7 million were written down to fair value of $86.3 million at December 31, 2020 as a result of individual credit loss allowances of $11.4 million associated with the collateral dependent non-accrual loans.

Fair value of the collateral dependent loans is measured based on the loan’s observable market price or the fair value of the collateral (less estimated selling costs). Collateral may be real estate and/or business assets such as equipment, inventory and/or accounts receivable. The value of business equipment, inventory and accounts receivable collateral is based on net book value on the business’ financial statements and, if necessary, discounted based on management’s review and analysis. Appraised and reported values may be discounted based on management’s historical experience, changes in market conditions from the time of valuation, and/or management’s expertise and knowledge of the client and client’s business. Collateral dependent loans are reviewed and evaluated on at least a quarterly basis for additional individual reserve and adjusted accordingly, based on the factors identified above.

OREO is adjusted to fair value upon transfer of the loans to OREO. Subsequently, OREO is carried at the lower of carrying value or fair value, less cost of disposal. The estimated fair value for OREO included in Level 3 is determined by independent market based appraisals and other available market information, less cost of disposal, that may be reduced further based on market expectations or an executed sales agreement. If the fair value of the collateral deteriorates subsequent to initial recognition, the Company records the OREO as a non-recurring Level 3 adjustment. Valuation techniques are consistent with those techniques applied in prior periods.

Fair Value of Financial Instruments

The Company discloses fair value information, based on the exit price notion, of financial instruments that are not measured at fair value in the financial statements. Fair value is the amount at which a financial instrument could be exchanged in a current transaction between willing parties, other than in a forced sale or liquidation, and is best evidenced by a quoted market price, if one exists.

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Quoted market prices, where available, are shown as estimates of fair market values. Because no quoted market prices are available for a significant portion of the Company's financial instruments, the fair value of such instruments has been derived based on the amount and timing of future cash flows and estimated discount rates based on observable inputs (“Level 2”) or unobservable inputs (“Level 3”).

Present value techniques used in estimating the fair value of many of the Company's financial instruments are significantly affected by the assumptions used. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate cash settlement of the instrument. Additionally, the accompanying estimates of fair values are only representative of the fair values of the individual financial assets and liabilities, and should not be considered an indication of the fair value of the Company. Management utilizes internal models used in asset liability management to determine the fair values disclosed below.

The carrying amounts and fair values of the Company’s financial instruments at December 31 for the year indicated are presented in the following table:

					Fair Value Measurements
	2021				Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
(In thousands)	Carrying Amount		Estimated Fair Value
Financial assets:
Cash and cash equivalents	$	420,020	$	420,020	$	420,020	$	—	$	—
Residential mortgage loans held for sale	39,409		39,409		—		39,409		—
Investments available-for-sale	1,465,896		1,465,896		—		1,465,896		—
Equity securities	41,166		41,166		41,166		—		—
Loans, net of allowance	9,857,946		9,964,924		—		—		9,964,924
Interest rate swap agreements	5,880		5,880		—		5,880		—
Accrued interest receivable	34,349		34,349		34,349		—		—
Bank owned life insurance	147,528		147,528		—		147,528		—
Financial liabilities:
Time deposits	$	1,290,862	$	1,292,598	$	—	$	1,292,598	$	—
Other deposits	9,333,869		9,333,869		9,333,869		—		—
Securities sold under retail repurchase agreements and
federal funds purchased	141,086		141,086		—		141,086		—
Advances from FHLB	—		—		—		—		—
Subordinated debt	172,712		175,780		—		—		175,780
Interest rate swap agreements	5,880		5,880		—		5,880		—
Accrued interest payable	1,516		1,516		1,516		—		—

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					Fair Value Measurements
	2020				Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
(In thousands)	Carrying Amount		Estimated Fair Value
Financial assets:
Cash and cash equivalents	$	297,003	$	297,003	$	297,003	$	—	$	—
Residential mortgage loans held for sale	78,294		78,294		—		78,294		—
Investments available-for-sale	1,348,021		1,348,021		—		1,338,096		9,925
Equity securities	65,760		65,760		65,760		—		—
Loans, net of allowance	10,235,142		10,336,355		—		—		10,336,355
Interest rate swap agreements	9,183		9,183		—		9,183		—
Accrued interest receivable	46,431		46,431		46,431		—		—
Bank owned life insurance	126,887		126,887		—		126,887		—
Financial liabilities:
Time deposits	$	1,657,662	$	1,674,112	$	—	$	1,674,112	$	—
Other deposits	8,375,407		8,375,407		8,375,407		—		—
Securities sold under retail repurchase agreements and
federal funds purchased	543,157		543,157		—		543,157		—
Advances from FHLB	379,075		390,593		—		390,593		—
Subordinated debt	227,088		227,512		—		—		227,512
Interest rate swap agreements	9,183		9,183		—		9,183		—
Accrued interest payable	3,254		3,254		3,254		—		—

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NOTE 23 – PARENT COMPANY FINANCIAL INFORMATION

Financial statements for Sandy Spring Bancorp, Inc. (Parent Only) for the periods indicated are presented in the following tables:

Statements of Condition

	December 31,
(In thousands)	2021		2020
Assets:
Cash and cash equivalents	$	69,038	$	63,943
Investments available-for-sale (at fair value)	—		9,925
Equity securities	568		568
Investment in subsidiary	1,620,432		1,589,483
Goodwill	1,292		1,292
Other assets	2,255		2,684
Total assets	$	1,693,585	$	1,667,895
Liabilities:
Subordinated debt	$	172,712	$	196,454
Accrued expenses and other liabilities	1,194		1,486
Total liabilities	173,906		197,940
Stockholders’ Equity:
Common stock	45,119		47,057
Additional paid in capital	751,072		846,922
Retained earnings	732,027		557,271
Accumulated other comprehensive income/ (loss)	(8,539)		18,705
Total stockholders’ equity	1,519,679		1,469,955
Total liabilities and stockholders’ equity	$	1,693,585	$	1,667,895

Statements of Income

	Year Ended December 31,
(In thousands)	2021		2020		2019
Income:
Cash dividends from subsidiary	$	189,172	$	74,410	$	42,625
Other income	434		932		1,093
Total income	189,606		75,342		43,718
Expenses:
Interest	6,765		9,028		3,141
Other expenses	1,592		1,505		1,507
Total expenses	8,357		10,533		4,648
Income before income taxes and equity in undistributed income of subsidiary	181,249		64,809		39,070
Income tax benefit	(1,563)		(1,988)		(734)
Income before equity in undistributed income of subsidiary	182,812		66,797		39,804
Equity in undistributed income of subsidiary	52,295		30,156		76,629
Net income	$	235,107	$	96,953	$	116,433

121

Statements of Cash Flows

	Year Ended December 31,
(In thousands)	2021		2020		2019
Cash Flows from Operating Activities:
Net income	$	235,107	$	96,953	$	116,433
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed income-subsidiary	(52,295)		(30,156)		(76,629)
Share based compensation expense	5,299		3,850		3,042
Tax benefit from stock options exercised	—		5		7
Other-net	4,133		(9,732)		—
Net cash provided by operating activities	192,244		60,920		42,853
Cash Flows from Investing Activities:
Proceeds from sales of investment available-for-sale	9,099		310		—
Investment in subsidiary	—		—		(85,000)
Net cash provided by/ (used in) investing activities	9,099		310		(85,000)
Cash Flows from Financing Activities:
Retirement of subordinated debt	(32,810)		(10,310)		—
Proceeds from issuance of subordinated debt	—		—		175,000
Proceeds from issuance of common stock	5,758		1,997		1,433
Stock tendered for payment of withholding taxes	(1,577)		(458)		(703)
Repurchase of common stock	(107,268)		(25,702)		(24,284)
Dividends paid	(60,351)		(53,175)		(42,272)
Net cash provided by/ (used in) financing activities	(196,248)		(87,648)		109,174
Net increase/ (decrease) in cash and cash equivalents	5,095		(26,418)		67,027
Cash and cash equivalents at beginning of year	63,943		90,361		23,334
Cash and cash equivalents at end of year	$	69,038	$	63,943	$	90,361

NOTE 24 – REGULATORY MATTERS

The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company's and the Bank's financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank's assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Company and the Bank's capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.

Quantitative measures established and defined by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios of Total, Tier 1 and Common Equity Tier 1 capital to risk-weighted assets, and of Tier 1 capital to average assets. As of December 31, 2021 and 2020, the capital levels of the Company and the Bank substantially exceeded all applicable capital adequacy requirements.

As of December 31, 2021, the most recent notification from the Bank’s primary regulator categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized the Bank must maintain minimum Total risk-based, Tier 1 risk-based, Common Equity Tier 1 risk-based, and Tier 1 leverage ratios as set forth in the following table. There are no conditions or events since that notification that management believes have changed the Bank's category.

122

The Company's and the Bank's actual capital amounts and ratios at December 31 for the years indicated are presented in the following table:

	Actual				For Capital Adequacy Purposes				To be Well Capitalized Under Prompt Corrective Action Provisions
(Dollars in thousands)	Amount		Ratio		Amount		Ratio		Amount		Ratio
As of December 31, 2021
Tier 1 Leverage:
Company	$	1,149,694	9.26	%	$	496,520	4.00	%	N/A		N/A
Sandy Spring Bank	$	1,251,739	10.09	%	$	496,171	4.00	%	$	620,214	5.00	%
Common Equity Tier 1 Capital to risk-
weighted assets:
Company	$	1,149,694	11.91	%	$	434,466	4.50	%	N/A		N/A
Sandy Spring Bank	$	1,251,739	12.98	%	$	433,889	4.50	%	$	626,729	6.50	%
Tier 1 Capital to risk-weighted assets:
Company	$	1,149,694	11.91	%	$	579,288	6.00	%	N/A		N/A
Sandy Spring Bank	$	1,251,739	12.98	%	$	578,519	6.00	%	$	771,358	8.00	%
Total Capital to risk-weighted assets:
Company	$	1,408,808	14.59	%	$	772,384	8.00	%	N/A		N/A
Sandy Spring Bank	$	1,335,853	13.85	%	$	771,358	8.00	%	$	964,198	10.00	%
As of December 31, 2020
Tier 1 Leverage:
Company	$	1,078,213	8.92	%	$	483,619	4.00	%	N/A		N/A
Sandy Spring Bank	$	1,199,570	9.93	%	$	483,175	4.00	%	$	603,969	5.00	%
Common Equity Tier 1 Capital to risk-
weighted assets:
Company	$	1,078,213	10.58	%	$	458,612	4.50	%	N/A		N/A
Sandy Spring Bank	$	1,199,570	11.79	%	$	457,920	4.50	%	$	661,441	6.50	%
Tier 1 Capital to risk-weighted assets:
Company	$	1,078,213	10.58	%	$	611,483	6.00	%	N/A		N/A
Sandy Spring Bank	$	1,199,570	11.79	%	$	610,561	6.00	%	$	814,081	8.00	%
Total Capital to risk-weighted assets:
Company	$	1,419,973	13.93	%	$	815,311	8.00	%	N/A		N/A
Sandy Spring Bank	$	1,347,102	13.24	%	$	814,081	8.00	%	$	1,017,601	10.00	%

NOTE 25 – SEGMENT REPORTING

Currently, the Company conducts business in three operating segments: Community Banking, Insurance and Investment Management. Each of the operating segments is a strategic business unit that offers different products and services. The Insurance and Investment Management segments were businesses that were acquired in separate transactions where management of the acquired business was retained. The accounting policies of the segments are the same as those of the Company. However, the segment data reflects inter-segment transactions and balances.

The Community Banking segment is conducted through Sandy Spring Bank and involves delivering a broad range of financial products and services, including various loan and deposit products, to both individuals and businesses. Parent company income and assets are included in the Community Banking segment, as the majority of parent company functions are related to this segment. Beginning on April 1, 2020, the Community Banking segment includes the impact from the Revere acquisition. Major revenue sources include net interest income, gains on sales of mortgage loans, trust income fees and service charges on deposit accounts. Expenses include personnel, occupancy, marketing, equipment and other expenses. Non-cash charges associated with amortization of intangibles related to the acquired entities in the Community Banking segment totaled $4.7 million, $4.3 million and $1.7 million for the years ended December 31, 2021, December 31, 2020 and December 31, 2019, respectively.

123

The Insurance segment is conducted through Sandy Spring Insurance, a subsidiary of the Bank. Sandy Spring Insurance operates Sandy Spring Insurance, a general insurance agency located in Annapolis, Maryland, and Neff and Associates, located in Ocean City, Maryland. Major sources of revenue are insurance commissions from commercial lines, personal lines, and medical liability lines. Expenses include personnel, occupancy, support charges and other expenses. Non-cash charges associated with amortization of intangibles related to the acquired entities were immaterial for each of the years ended December 31, 2021, 2020 and 2019.

The Investment Management segment is conducted through West Financial and RPJ, subsidiaries of the Bank. These asset management and financial planning firms, located in McLean, Virginia and Falls Church, Virginia, respectively, provide comprehensive investment management and financial planning to individuals, families, small businesses and associations, including cash flow analysis, investment review, tax planning, retirement planning, insurance analysis and estate planning. West Financial and RPJ had approximately $4.1 billion in combined assets under management. Major revenue sources include non-interest income earned on the above services. Expenses include personnel, occupancy, support charges and other expenses. Non-cash charges associated with amortization of intangibles related to the acquired entities were $1.9 million, $1.9 million, and $0.1 million for the years ended December 31, 2021, December 31, 2020 and December 31, 2019, respectively.

124

Information for the operating segments and reconciliation of the information to the consolidated financial statements for the years ended December 31 is presented in the following tables:

	2021
(In thousands)	Community Banking		Insurance		Investment Management		Inter-Segment Elimination		Total
Interest income	$	450,284	$	2	$	10	$	(12)	$	450,284
Interest expense	25,778		—		—		(12)		25,766
Provision for credit losses	(45,556)		—		—		—		(45,556)
Non-interest income	80,077		7,011		22,378		(7,411)		102,055
Non-interest expenses	240,996		5,869		14,473		(868)		260,470
Income before income taxes	309,143		1,144		7,915		(6,543)		311,659
Income tax expense	74,036		339		2,177		—		76,552
Net income	$	235,107	$	805	$	5,738	$	(6,543)	$	235,107
Assets	$	12,590,176	$	9,110	$	59,099	$	(67,659)	$	12,590,726
	2020
(In thousands)	Community Banking		Insurance		Investment Management		Inter-Segment Elimination		Total
Interest income	$	423,560	$	6	$	7	$	(13)	$	423,560
Interest expense	60,414		—		—		(13)		60,401
Provision for credit losses	85,669		—		—		—		85,669
Non-interest income	78,940		6,810		17,831		(865)		102,716
Non-interest expenses	237,910		5,686		13,051		(865)		255,782
Income before income taxes	118,507		1,130		4,787		—		124,424
Income tax expense	25,907		313		1,251		—		27,471
Net income	$	92,600	$	817	$	3,536	$	—	$	96,953
Assets	$	12,800,537	$	11,335	$	57,768	$	(71,211)	$	12,798,429
	2019
(In thousands)	Community Banking		Insurance		Investment Management		Inter-Segment Elimination		Total
Interest income	$	347,867	$	26	$	13	$	(37)	$	347,869
Interest expense	82,598		—		—		(37)		82,561
Provision for credit losses	4,684		—		—		—		4,684
Non-interest income	55,042		6,621		10,326		(667)		71,322
Non-interest expenses	166,802		5,731		7,219		(667)		179,085
Income before income taxes	148,825		916		3,120		—		152,861
Income tax expense	35,350		258		820		—		36,428
Net income	$	113,475	$	658	$	2,300	$	—	$	116,433
Assets	$	8,624,590	$	10,340	$	16,424	$	(22,352)	$	8,629,002

125

Item 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

None.

Item 9A. CONTROLS AND PROCEDURES

Fourth Quarter 2021 Changes In Internal Controls Over Financial Reporting

No change occurred during the fourth quarter of 2021 that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

Disclosure Controls and Procedures

As required by Securities and Exchange Commission rules, the Company’s management evaluated the effectiveness of the Company’s disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) as of December 31, 2021. The Company’s chief executive officer and chief financial officer participated in the evaluation. Based on this evaluation, the Company’s chief executive officer and chief financial officer concluded that the Company’s disclosure controls and procedures were effective as of December 31, 2021.

Management’s annual report on internal control over financial reporting is located on page 66 of this report.

Item 9B. OTHER INFORMATION

None.

Item 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTION

Not applicable.

PART III

Item 10.    DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

The information under the captions “Proposal 1: Election of Directors,” “Corporate Governance,” “Delinquent Section 16(a) Reports,” “Proposals for the 2023 Annual Meeting of Shareholders,” and “Report of the Audit Committee” in the Proxy Statement is incorporated in this Report by reference. Information regarding executive officers is included under the caption “Information About Our Executive Officers” on page 15 of this Report.

Item 11.    EXECUTIVE COMPENSATION

The information under the captions “Director Compensation,” “Compensation Discussion and Analysis,” “Executive Compensation Tables” and “CEO Pay Ratio” in the Proxy Statement is incorporated in this Report by reference.

Item 12.    SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

The information under the caption “Stock Ownership Information” in the Proxy Statement is incorporated in this Report by reference. Information regarding securities authorized for issuance under equity compensation plans is incorporated by reference from “Equity Compensation Plans” on page 33 of this Report.

Item 13.    CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE

The information under the captions “Director Independence” and “Transactions with Related Persons” in the Proxy Statement is incorporated in this Report by reference.

Item 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

126

The information under the captions “Audit and Non-Audit Fees” and “Audit Committee’s Preapproval Policies and Procedures” in the Proxy Statement is incorporated in this Report by reference.

127

PART IV.

Item 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES

The following financial statements are filed as a part of this report:

Consolidated Statements of Condition at December 31, 2021 and 2020

Consolidated Statements of Income for the years ended December 31, 2021, 2020 and 2019

Consolidated Statements of Comprehensive Income for the years ended December 31, 2021, 2020 and 2019

Consolidated Statements of Changes in Stockholders' Equity for the years ended December 31, 2021, 2020 and 2019

Consolidated Statements of Cash Flows for the years ended December 31, 2021, 2020 and 2019

Notes to the Consolidated Financial Statements

Reports of Registered Public Accounting Firm

All financial statement schedules have been omitted, as the required information is either not applicable or included in the Consolidated Financial Statements or related Notes.

Exhibit No.	Description	Location
3.1.1	Articles of Incorporation of Sandy Spring Bancorp, Inc., as amended	Incorporated by reference to Exhibit 3.1 to Form 10-Q for the quarter ended June 30, 1996, SEC File No. 0-19065
3.1.2	Articles of Amendment to the Articles of Incorporation of Sandy Spring Bancorp, Inc.	Incorporated by reference to Exhibit 3(b) to Form 10-K for the year ended December 31, 2011, SEC File No. 0-19065
3.1.3	Articles of Amendment to the Articles of Incorporation of Sandy Spring Bancorp, Inc.	Incorporated by reference to Exhibit 3.1 to Form 8-K filed on May 2, 2018, SEC File No. 0-19065
3.2	Bylaws of Sandy Spring Bancorp, Inc.	Incorporated by reference to Exhibit 3.1 to Form 8-K filed on August 26, 2021, SEC File No. 0-19065
4.1	Description of Common Stock	Incorporated by reference to Exhibit 4.1.1 to Form 10-K for the year ended December 31, 2019, SEC File No. 0-19065
4.2.1	Subordinated Indenture, dated as of November 5, 2019, between Sandy Spring Bancorp, Inc. and Wilmington Trust, National Association, as Trustee	Incorporated by reference to Exhibit 4.1 to Form 8-K filed on November 5, 2019, SEC File No. 0-19065
4.2.2	First Supplemental Indenture, dated as of November 5, 2019, between Sandy Spring Bancorp, Inc. and Wilmington Trust, National Association, as Trustee	Incorporated by reference to Exhibit 4.2 to Form 8-K filed on November 5, 2019, SEC File No. 0-19065
	Other instruments defining the rights of holders of long-term debt securities of Sandy Spring Bancorp, Inc. and its subsidiaries are omitted in accordance with Section (b)(4)(iii)(A) of Item 601 of Regulation S-K. Sandy Spring Bancorp, Inc. agrees to furnish copies of these instruments to the SEC upon request.
10.1*	Sandy Spring Bancorp, Inc. 2005 Omnibus Stock Plan	Incorporated by reference to Exhibit 10.1 to Form 8-K filed on June 27, 2005, SEC File No. 0-19065
10.2.1*	Form of Director Fee Deferral Agreement, August 26, 1997, as amended	Incorporated by reference to Exhibit 10(h) to Form 10-K for the year ended December 31, 2003, SEC File No. 0-19065

128

10.2.2*	Form of Amendment to Directors’ Fee Deferral Agreement	Incorporated by reference to Exhibit 10(o) to Form 10-K for the year ended December 31, 2008, SEC File No. 0-19065
10.3*	Sandy Spring Bank Directors’ Deferred Fee Plan	Incorporated by reference to Exhibit 10(d) to Form 10-K for the year ended December 31, 2016, SEC File No. 0-19065
10.4.1*	Employment Agreement dated as of January 13, 2012, by and among Sandy Spring Bancorp, Inc., Sandy Spring Bank, and Philip J. Mantua	Incorporated by reference to Exhibit 10.1 to Form 8-K filed on January 17, 2012, SEC File No. 0-19065
10.4.2*	Amendment to Employment Agreement Between Sandy Spring Bancorp, Inc., Sandy Spring Bank and Philip J. Mantua dated January 13, 2012	Incorporated by reference to Exhibit 10.2 to Form 8-K filed on March 7, 2013, SEC File No. 0-19065
10.5.1*	Employment Agreement dated as of January 1, 2009, by and among Sandy Spring Bancorp, Inc., Sandy Spring Bank, and Daniel J. Schrider	Incorporated by reference to Exhibit 10(h) to Form 10-K for the year ended December 31, 2008, SEC File No. 0-19065
10.5.2*	Amendment to Employment Agreement between Sandy Spring Bancorp, Inc., Sandy Spring Bank and Daniel J. Schrider dated January 1, 2009	Incorporated by reference to Exhibit 10.6.2 to Form 10-K for the year ended December 31, 2019, SEC File No. 0-19065
10.5.3*	Second Amendment to Employment Agreement Between Sandy Spring Bancorp, Inc., Sandy Spring Bank and Daniel J. Schrider dated January 1, 2009	Incorporated by reference to Exhibit 10.1 to Form 8-K filed on March 7, 2013, SEC File No. 0-19065
10.6.1*	Change in Control Agreement dated as of March 9, 2012, by and among Sandy Spring Bancorp, Inc., Sandy Spring Bank, and R. Louis Caceres	Incorporated by reference to Exhibit 10(m) to Form 10-K for the year ended December 31, 2011, SEC File No. 0-19065
10.6.2*	Amendment to Change in Control Agreement Between Sandy Spring Bancorp, Inc., Sandy Spring Bank and R. Louis Caceres dated March 9, 2012	Incorporated by reference to Exhibit 10.4 to Form 8-K filed on March 7, 2013, SEC File No. 0-19065
10.7.1*	Employment Agreement dated as of January 13, 2012, by and among Sandy Spring Bancorp, Inc., Sandy Spring Bank, and Joseph J. O’Brien, Jr.	Incorporated by reference to Exhibit 10.2 to Form 8-K filed on January 17, 2012, SEC File No. 0-19065
10.7.2*	Amendment to Employment Agreement Between Sandy Spring Bancorp, Inc., Sandy Spring Bank and Joseph J. O’Brien, Jr. dated January 13, 2012	Incorporated by reference to Exhibit 10.3 to Form 8-K filed on March 7, 2013, SEC File No. 0-19065
10.8*	Employment Agreement dated as of September 23, 2019 by and among Sandy Spring Bancorp, Inc., Sandy Spring Bank and Kenneth C. Cook	Filed herewith
10.9*	Sandy Spring Bank Executive Incentive Retirement Plan	Incorporated by reference to Exhibit 10.10 to Form 10-K for the year ended December 31, 2020, SEC File No. 0-19065
10.10*	Sandy Spring Bancorp, Inc. Employee Stock Purchase Plan, as Amended and Restated	Incorporated by reference to Appendix A of the Definitive Proxy Statement filed on October 7, 2020, SEC File No. 0-19065
10.11*	Sandy Spring Bancorp, Inc. 2015 Omnibus Incentive Plan	Incorporated by reference to Appendix A of the Definitive Proxy Statement filed on March 31, 2015, SEC File No. 0-19065
10.12*	Form of Sandy Spring Bank Split Dollar Life Insurance Agreement	Incorporated by reference to Exhibit 10.1 to Form 8-K filed on May 27, 2021, SEC File No. 0-19065

129

10.13*	Sandy Spring Bank Non-Qualified Deferred Compensation Plan	Incorporated by reference to Exhibit 10.1 to Form 8-K filed on October 28, 2021, SEC File No. 0-19065
21	Subsidiaries	Filed herewith
23	Consent of Independent Registered Public Accounting Firm	Filed herewith
31(a)	Rule 13a-14(a)/15d-14(a) Certification	Filed herewith
31(b)	Rule 13a-14(a)/15d-14(a) Certification	Filed herewith
32(a)	18 U.S.C. Section 1350 Certification	Filed herewith
32(b)	18 U.S.C. Section 1350 Certification	Filed herewith
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

* Management Contract or Compensatory Plan or Arrangement filed pursuant to Item 15(b) of this Report.

Item 16. FORM 10-K SUMMARY

None.

130

SIGNATURES

Pursuant to the requirements of Section 13 of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

SANDY SPRING BANCORP, INC.

(Registrant)

By:	/s/ Daniel J. Schrider
	Daniel J. Schrider
	President and Chief Executive Officer
	Date:	February 18, 2022

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities indicated as of February 18, 2022.

Principal Executive Officer and Director:	Principal Financial and Accounting Officer:
/s/ Daniel J. Schrider	/s/ Philip J. Mantua
Daniel J. Schrider	Philip J. Mantua
President and Chief Executive Officer	Executive Vice President and Chief Financial Officer

Signature	Title
/s/ Ralph F. Boyd, Jr.	Director
Ralph F. Boyd, Jr.
/s/ Mark E. Friis	Director
Mark E. Friis
/s/ Brian J. Lemek	Director
Brian J. Lemek
/s/ Pamela A. Little	Director
Pamela A. Little
/s/ Walter C. Martz II	Director
Walter C. Martz II
/s/ Mark C. Michael	Director
Mark C. Michael
/s/ Mark C. Micklem	Director
Mark C. Micklem
/s/ Christina B. O'Meara	Director
Christina B. O'Meara
/s/ Robert L. Orndorff	Director
Robert L. Orndorff
/s/ Craig A. Ruppert	Director
Craig A. Ruppert
/s/ Mona Abutaleb Stephenson	Director
Mona Abutaleb Stephenson

131

EX-10.8

EMPLOYMENT AGREEMENT

(Execution Version)

THIS AGREEMENT (the “Agreement”), made as of this 23rd day of September, 2019 by and among Sandy Spring Bancorp, Inc., a registered bank holding company (“Bancorp”), Sandy Spring Bank, a Maryland corporation and wholly-owned subsidiary of Bancorp with its main office in Olney, Maryland (the “Bank”) (collectively, the “Company”), and Kenneth C. Cook (the “Officer”).

WITNESSETH

WHEREAS, concurrently with the execution of this Agreement, Bancorp, the Bank and Revere Bank are entering into an Agreement and Plan of Merger (the “Merger Agreement”) pursuant to which Revere Bank will merge with and into the Bank (the “Merger”), with the Bank continuing as the surviving corporation.

WHEREAS, conditioned on the successful completion of the Merger, Bancorp and the Bank desire that the Bank employ the Officer after the date of consummation of the Merger (the “EffectiveDate”) on the terms and conditions of this Agreement, and the Officer desires to be employed by the Bank on such terms and conditions.

NOW, THEREFORE, in consideration of the premises and mutual covenants and agreements herein contained and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, it is agreed as follows:

1.Employment.

a.Commencing as of the first business day following the Effective Date, the Officer shall be employed as Executive Vice President and Division President, Commercial Banking of the Company. The Officer shall report to and be subject to the supervision of the President and CEO and perform all duties and shall have all powers which are commonly incident to the office of Executive Vice President and Division President, Commercial Banking or which, consistent with that office, are assigned to the Officer and which may be altered, modified, increased or reduced from time to time by the President and CEO.

b.In addition to the Officer’s major job accountabilities set forth in the job description maintained by the Human Resources Division, the Officer’s duties include, but are not limited to, participating actively as a member of the executive management team to develop strategy, policy, and tactics for the Bank and modeling high standards of leadership, integrity, teamwork, and communication as a member of the executive team while embracing the values and culture of the Bank.

c.The Officer agrees to abide by the rules, regulations, instructions, personnel practices and policies of the Company applicable to employees and senior executive officers generally and any changes thereof which may be adopted at any time by the Company.

d.The Officer agrees to devote his full working time (often more than forty (40) hours per week), attention, energies, and best efforts to the performance of his duties hereunder.

2.Facilities. The Officer will be furnished with the working facilities and staff customary for the Company’s executive officers with the title and duties set forth in Section 1 of this Agreement and as are necessary for the Officer to perform the duties of the position.

3.Term. Unless terminated at an earlier date in accordance with Section 10 of this Agreement, the term of the Officer’s employment under this Agreement shall be for a period of thirty (30) months, commencing on the first business day following the Effective Date. Except as otherwise agreed in writing by the parties, if the Officer continues to be employed by the Bank after such thirty (30)-month period, for any reason, he will do so as an at-will employee and not pursuant to this Agreement. If either (i) the Merger Agreement is validly terminated pursuant to the terms thereof, or (ii) the Officer’s employment with Revere Bank terminates prior to the Effective Date, for any reason, this Agreement, and all rights and obligations of Bancorp, the Bank and the Officer hereunder, shall be null and void.

4.Base Compensation.

a.The Company agrees to pay the Officer during the term of this Agreement an annual base salary at the rate of $425,000 calculated on a calendar year basis, payable in cash in accordance with the Company’s customary payroll schedule and practice, for the payment of base salary to executives, subject to such federal state or local taxes as shall be required to be withheld pursuant to any applicable law or regulation and other normal deductions for fringe benefits and/or as otherwise agreed by the parties. This base salary may be adjusted in accordance with this Section 4.

b.The Compensation Committee of the board of directors of Bancorp and the Bank (the “Board”) shall perform an annual analysis of the Officer’s performance and of the compensation of officers performing similar functions at independent financial institutions of comparable size and performance to the Company, and based upon this review, the recommendations of the President and Chief Executive Officer, and on such other factors as it deems pertinent, may maintain, increase or decrease the Officer’s base salary, provided that no such action shall (i) reduce the rate of the Officer’s base salary below the amount set forth in Section 4.a. or (ii) reduce the rate of base salary paid to the Officer for any months prior to the month in which notice of the reduction is provided in writing to the Officer.

c.In the absence of action by the Board, the Officer shall continue to receive the base salary at the amount set forth in Section 4.a. specified herein or, if another rate has been established under the provisions of this Section 4, the rate last properly established by action of the Board under the provisions of this Section 4.

5.Bonuses.

a.For the year ending December 31, 2020, the Officer shall have the opportunity to earn an annual cash bonus under the Bank’s Executive Team Incentive Plan based on achievement of annual performance goals established by the Compensation Committee in its good faith discretion with a target bonus opportunity equal to 55% of the Officer’s base salary as of the end of the performance period. For years after the year ending December 31, 2020, unless agreed otherwise, the Officer shall be entitled to participate in such bonus programs that the Company may make available from time to time to senior management employees pursuant to bonus plans or otherwise at a bonus opportunity equivalent to the bonus opportunity made available to similarly situated executives.

b.For the year ending December 31, 2020, the Officer shall have the opportunity to receive an annual long-term equity incentive award with a target incentive opportunity equal to 50% of the Officer’s base salary pursuant to the Company’s equity incentive plan. For years after the years ending December 31, 2020, unless agreed otherwise, the Officer

shall be eligible for annual long-term incentive awards at a target incentive opportunity equivalent to the opportunity made available to similarly situated executives.

c.The Officer also shall participate in any other fringe benefits which are or may become available to senior management employees of the Bank.

6.Benefit Plans. The Officer shall be entitled to participate in any life insurance, medical, dental, pension, profit sharing, and retirement plans and other programs and arrangements which may now be in effect or, if not terminated, shall hereafter be in effect and as may be approved from time to time by the Board for the benefit of employees the Bank and as are described more particularly in the Bank’s benefit plans, as applicable. The Officer’s eligibility for an participation in such benefit plans is governed by the terms and conditions of those plans, and by the policies of the Company as determined by the Company and the terms hereof, subject to the applicable terms and conditions of the benefits plans in effect at that time. Nothing herein shall affect the Company’s ability to modify, alter, terminate or otherwise change any benefit plan it has in effect at any given time, to the extent permitted by law.

7.Paid Time Off.The Officer shall be entitled to thirty (30) working days of Paid Time Off, as defined in the Company’s personnel policies, during each calendar year during the term of this Agreement, to be taken at reasonable times and in reasonable periods as the Officer and the Company shall mutually determine, and provided that no Paid Time Off shall interfere with the duties required to be rendered by the Officer hereunder. Any Paid Time Off not used during a twelve-month calendar period shall carry over and be useable during the succeeding twelve-month calendar period, but not thereafter. The Officer shall not receive any additional compensation from the Company on account of the Officer’s failure to take Paid Time Off. The Officer will not be paid for any unused, available Paid Time Off at the end of employment.

8.Expense Payments and Reimbursement.

a.The Officer shall be reimbursed for all reasonable travel, entertainment and other business expenses incurred by the Officer in connection with the Officer’s employment under this Agreement upon substantiation of such expenses in accordance with applicable policies of the Bank.

b.The Bank will pay, or reimburse the Officer for, the monthly dues and assessments for membership at Lakewood Country Club.

c.The Bank will provide the Officer with an automobile allowance of $1,000 per month.

9.Loyalty and Confidentiality.

a.During the term of this Agreement the Officer: (i) shall devote all the Officer’s time, attention, skill, and efforts to the faithful performance of the Officer’s duties hereunder; provided, however, that from time to time, the Officer may expend reasonable amounts of time serving on the board of directors, and hold any other offices or positions in, companies or organizations which will not present any conflict of interest with the Bank or Bancorp or any of their subsidiaries or affiliates, unfavorably affect the performance of Officer’s duties pursuant to this Agreement, or violate any applicable statute or regulation; and (ii) shall not engage in any business or activity contrary to the business affairs or interests of the Company and shall otherwise comply with the Company’s Code of Business Conduct as in effect. Nothing contained in this Agreement shall prevent or limit the Officer’s right to own up to 2% of the outstanding stock of any corporation

listed on the New York Stock Exchange or the Nasdaq Stock Market or up to a 5% passive ownership of the outstanding capital stock or other equity interests of any other entity.

b.The Officer agrees that during the course of employment with the Company, the Officer has and will come into contact with and learn various forms of Confidential Information and Trade Secrets, which are the property of the Company. “Confidential Information” are items of information relating to the Company, its products, services, customers, borrowers, depositors and other customers that are not generally known or available to the general public, and have been developed, compiled or acquired by the Company at its great efforts and expense, including, but not limited to (i) operation or financial information, such as information with respect to costs, fees, profits, sales, sales margins, capital structure, operating results, borrowing arrangements, strategies and plans for future business, pending projects and proposals and potential acquisitions or divestitures,

(ii)product and technical information, such as new and innovative product ideas, subjects of research and development, investigations, data, software, software codes, computer models and research and development projects, (iii) marketing information such as new marketing ideas, markets, mailing lists, the identity, including the names or addresses, of the Company’s borrowers, depositors and other customers, the financial arrangement between the Company and such customers, specific customer needs and requirements and leads and referrals to prospective customers, (iv) vendor, supplier and any other business partner (“Business Partner”) information, the financial arrangement between the Company and such Business Partners, and (v) any information concerning or obtained from the Company’s customers. “Trade Secrets” are items of Confidential Information that meet the requirements of applicable trade secret law. The Officer agrees that, unless required by law or specifically permitted by Bancorp or the Bank in writing, the Officer will not disclose to any person or entity, either during or subsequent to the Officer’s employment, any of the Company’s Confidential Information or Trade Secrets, which is not generally known to the public, nor shall the Officer employ such information in any way other than for the benefit of the Company. Confidential Information and Trade Secrets can be in any form: oral, written or machine readable, including electronic files. The absence of any marking or statement that any particular information is Confidential Information shall not affect its status as Confidential Information.

c.The Officer acknowledges and agrees that the Company is engaged in a highly competitive business and that its competitive position depends upon its ability to maintain the confidentiality of the Confidential Information and Trade Secrets which were developed, compiled and acquired by the Company at its great effort and expense. The Officer further acknowledges and agrees that disclosing, divulging, revealing or using any of the Confidential Information or Trade Secrets, other than in connection with the Company’s business or as specifically authorized by the Company, will be highly detrimental to the Company, and that serious loss of business and pecuniary damage may result therefrom.

d.Nothing contained in this Agreement prohibits or prevents the Officer from filing a charge with or participating, testifying, or assisting in any investigation, hearing, whistleblowing proceeding or other proceeding before any federal, state, or local government agency (e.g., EEOC, NLRB, SEC, etc.). Under the federal Defend Trade Secrets Act of 2016, the Officer shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that: (a) is made (i) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected

violation of law; or (b) is made to the Officer’s attorney in relation to a lawsuit for retaliation against the Officer for reporting a suspected violation of law; or (c) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.

e.The Officer agrees to deliver to the Company, immediately upon separation from employment and at any time the Company so requests, (i) any and all documents, files, notes, memoranda, databases, computer files and/or other computer programs reflecting any Confidential Information and/or Trade Secrets whatsoever or otherwise relating to the Company’s business; (ii) lists of the Company’s customers, and leads or referrals to prospective customers; and (iii) any computer equipment, home office equipment, automobile or other business equipment belonging to the Company that the Officer may then possess or have under his control. For any equipment or devices owned by the Officer on which proprietary information of the Company is stored or accessible, the Officer shall, immediately upon or prior to separation from employment, deliver such equipment or devices to the Company so that any proprietary information may be deleted or removed, and provide all necessary passwords or passcodes, after which such devices will be returned to the Officer. The Officer expressly authorizes the Company’s designated representatives to access such equipment or devices for this limited purpose and shall provide any passwords or access codes necessary to accomplish this task.

f.Notwithstanding anything herein to the contrary, the obligations of this Section 9 shall survive the termination of this Agreement.

10.Termination and Termination Pay. The Officer’s employment under this Agreement may be terminated in the following circumstances:

a.Death. The Officer’s employment under this Agreement shall terminate upon the Officer’s death during the term of this Agreement, in which event the Officer’s estate shall be entitled to receive the compensation due to the Officer through the last day of the calendar month in which the Officer’s death occurred.

b.Disability. The Company or the Officer may terminate the Officer’s employment after having established the Officer’s Disability. For purposes of this Agreement, “Disability” means a physical or mental infirmity that results in the Officer’s becoming eligible for long-term disability benefits under the Bank’s long-term disability plan. In the event of such Disability, the Officer’s obligation to perform services under this Agreement will terminate. In the event the Officer’s employment under this Agreement terminates after the Officer’s Disability has been established, the Officer shall be entitled to receive the compensation due to the Officer under this Agreement through the date of such employment termination.

c.Just Cause.

i.The Board may, by written notice to the Officer in the form and manner specified in this paragraph and Section 18, immediately terminate the Officer’s employment with Bancorp or the Bank at any time for Just Cause. The Officer shall have no right to receive compensation or other benefits from the Company for any period after termination for Just Cause. Termination for “Just Cause” shall mean termination because of, in the good faith determination of the Board, the Officer’s:

1.Personal dishonesty;

2.Willful misconduct;

3.Breach of or dereliction of fiduciary duty;

4.Fraud;

5.Intentional failure to perform the duties assigned to or expected of the Officer under this Agreement, which continues after written notice of such failure to the Officer, specifying any such failure;

6.Other, continuing material failure to perform the duties assigned to or expected of the Officer under this Agreement after reasonable notification (which shall be stated in writing and given at least fifteen (15) days prior to termination) by the Board of such failure;

7.Conviction of a felony, plea of guilty or nolo contendere or finding of liability of or under any law, rule or regulation (other than traffic violations or similar offenses) or final cease-and-desist order;

8.Engaging in behavior that would constitute grounds for liability (the Company’s and/or the Officer’s) for harassment, retaliation or discrimination (as proscribed by the U.S. Equal Employment Opportunity Commission or applicable state or local law) or other egregious conduct violative of laws governing the workplace;

9.Being under the influence of drugs or alcohol (other than lawful prescription medicine or other medically-related lawful drugs to the extent that they are taken in accordance with their directions or the reasonable consumption of alcohol when authorized for purposes of the Company, such as in connection with customer entertainment) during the performance of any of the duties, responsibilities, obligations or functions for which the Officer has been hired or is assigned to perform; or

10.Subject to paragraph (ii) below, material breach by the Officer of any provision of this Agreement, including, but not limited to, the unauthorized disclosure of Confidential Information belonging to the Company, a violation of any Company rule, regulation, procedure or policy.

ii.Notwithstanding the foregoing, the Officer shall not be deemed to have been terminated for Just Cause unless there shall have been delivered to the Officer a copy of a resolution duly adopted by the affirmative vote of not less than a majority of the entire membership of the Board at a meeting called and held for the purpose (after reasonable notice to the Officer and an opportunity for the Officer to be heard before the Board), of finding that in the good faith opinion of the Board the Officer was guilty of conduct described above and specifying the particulars thereof.

iii.Notwithstanding the foregoing, it is expected that Officer will perform all duties and responsibilities described herein, and Officer shall have the right to cure non- performance, to the extent such performance is reasonably capable of being cured and shall promptly upon receipt of written notice of nonperformance from the Board, comply with the requirements of such notice, and further if Officer shall not comply with such notice to the sole discretion and satisfaction of the Company within forty- eight (48) hours after actual receipt thereof by Officer as evidenced by a receipt signed by or on behalf of Officer), (except if such compliance cannot be reasonably completed within forty-eight (48) hours, if the Officer shall commence to comply within such period and thereafter proceed to completion with due diligence) Bancorp or the Bank shall have the right to proceed with the Board meeting specified in the preceding paragraph.

d.Certain Regulatory Events.

i.If the Officer is removed and/or permanently prohibited from participating in the conduct of the Bank’s affairs by an order issued under Sections 8(e)(4) or 8(g)(l) of the Federal

Deposit Insurance Act (“FDIA”) (12 USC. §§ 1818(e)(4) and (g)(1)), all obligations of the Bank under this Agreement shall terminate as of the effective date of the order, including the obligation to pay the Officer any compensation, except that vested benefit rights of the parties shall not be affected.

ii.If the Bank is in default (as defined in Section 3(x)(I) of FDIA), all obligations of the Bank under this Agreement shall terminate as of the date of default, including the obligation to pay the Officer any compensation, but vested benefit rights of the parties shall not be affected.

iii.If a notice served under Sections 8(e)(3) or (g)(l) of the FDIA (12 U.S.C. §§1818(e)(3) and (g)(l)) suspends and/or temporarily prohibits the Officer from participating in the conduct of the Bank’s affairs, the Bank’s obligations under this Agreement shall be suspended as of the date of such service, including the obligation to pay the Officer any compensation, unless stayed by appropriate proceedings.

The occurrence of any of the events described in paragraphs i, ii, and iii above may be considered by the Board in connection with a termination for Just Cause.

e.Voluntary Termination by Officer. In addition to the Officer’s other rights to terminate under this Agreement, the Officer may voluntarily terminate employment with the Company during the term of this Agreement upon at least sixty (60) days’ prior written notice to Bancorp or the Bank, in which case the Officer shall receive only compensation, vested rights and employee benefits up to the date of termination.

f.Without Just Cause or With Good Reason.

i.In addition to termination pursuant to Section 10.a. through 10.e., the Board may, by written notice to the Officer, immediately terminate the Officer’s employment with Bancorp or the Bank at any time for a reason other than Just Cause (a termination “Without Just Cause”); and the Officer may, by written notice to the Board, terminate this Agreement for “Good Reason,” as defined below (a termination “With GoodReason”).

ii.In the event of termination under this Section 10.f., and subject to the Officer’s satisfaction of the Release requirement specified in subsection v. below, the Officer shall be entitled to receive his base salary for the remaining term of the Agreement at the highest annual rate in effect pursuant to Section 4 of this Agreement for any of the twelve (12) months immediately preceding the date of such termination, plus annual cash bonuses for each year (prorated in the event of partial years) remaining under the term of the Agreement at the amount received by the Officer in the calendar year preceding the termination (provided, that in the event such termination should occur in the first year of the term hereof, so that there shall not have been any bonus paid in the calendar year preceding the termination, the amount of the bonus will be deemed to be the targeted opportunity provided for under Section 5a hereof). The sum due under this Section 10.f. shall be paid in one lump sum within sixty (60) calendar days of the Officer’s termination of employment, subject to delay as provided in see Section 27.

iii.“Good Reason” shall be deemed to exist at the time that any of the following events occurs without the Officer’s express written consent:

1.A material reduction in the Officer’s responsibilities or authority (including lines of reporting) in connection with the Officer’s employment with Bancorp or the Bank;

2.A material reduction in the Officer’s base salary, as such base salary may be increased from time to time;

3.A material reduction in the Officer’s incentive compensation and benefits compared to their aggregate value as of the Effective Date; or

4.A requirement that the Officer’s principal business office be relocated by more than 30 miles, unless such relocated principal business office is closer to the Officer’s principal place of residence.

Notwithstanding the forgoing, the Officer will only have Good Reason if the Officer provides notice to the Company of the existence of the event or circumstance constituting Good Reason specified in any of the preceding clauses within ninety (90) days of the initial existence of such event or circumstances and such event or circumstance is not cured within thirty (30) days after Bancorp’s and the Bank’s receipt of such notice. If the Officer initiates termination With Good Reason, the actual termination must occur within sixty (60) days after the date of the notice of termination. The Officer’s failure to timely give notice of termination with respect to the occurrence of a specific event that would otherwise constitute Good Reason will not constitute a waiver of the Officer’s right to give notice of any new subsequent event that would constitute Good Reason that occurs after such prior event (regardless of whether the new subsequent event is of the same or different nature as the preceding event).

iv.Notwithstanding the foregoing, a reduction or elimination of the Officer’s benefits under one or more benefit plans maintained by the Bank as part of a good faith, overall reduction or elimination of such plan or plans or benefits thereunder applicable to all participants in a manner that does not discriminate against the Officer (except as such discrimination may be necessary to comply with law) shall not constitute an event of Good Reason or a material breach of this Agreement, provided that benefits of the type or to the general extent as those offered under such plans prior to such reduction or elimination are not available to other officers of the Bank or any company that controls either of them under a plan or plans in or under which the Officer is not entitled to participate, and receive benefits, on a fair and nondiscriminatory basis.

v.As a condition to receipt of the payment specified in Section 10.f.ii. above, the Officer shall be required to execute a general release of all then existing claims against the Company, their affiliates, shareholders, directors, officers, employees and agents in relation to claims relating to or arising out of the Officer’s employment with the Company in a form substantially similar to the form attached hereto as Exhibit A (the “Release”), and the Officer shall not receive any payments or benefits to which he may be entitled hereunder that are subject to the execution of a Release unless the Officer satisfies this release requirement. The Company shall provide the Release to the Officer within five (5) days after the date of the Officer’s employment termination. THE OFFICER’S RIGHT TO BENEFITS UNDER SECTION 10.f.ii. OF THIS AGREEMENT SHALL BE CONTINGENT ON HIS SIGNING AND FILING THE RELEASE WITH THE COMPANY WITHIN THE PERIOD SPECIFIED IN THE RELEASE, WHICH PERIOD WILL NOT EXCEED 45 DAYS FROM THE DATE THE COMPANY PROVIDES THE RELEASE TO THE OFFICER, AND NOT REVOKING THE RELEASE WITHIN THE PERIOD SPECIFIED IN THE RELEASE, WHICH PERIOD WILL NOT EXCEED 7 DAYS FROM THE DATE THE OFFICER SIGNS THE RELEASE.

g.Continuing Covenant Not to Compete or Interfere with Relationships. Regardless of anything herein to the contrary, following the Officer’s termination of employment for any reason, including termination by the Board Without Just Cause:

i.The Officer’s obligations under Section 9 of this Agreement will continue in effect;

ii.During the twenty-four (24) month period following the Officer’s termination of employment:

a.The Officer will not directly or indirectly be employed by, serve as a consultant to, otherwise assist or participate in any manner with (as a principal, partner, director, officer, agent, employee, consultant or otherwise) or provide services to a Competitor (defined below) if the employment, consulting, assistance, participation or services that the Officer is to provide to the Competitor are the same as, or substantially similar to, any of the services that the Officer provided to Bancorp, the Bank or any of their subsidiaries and are or will be within the Restricted Territory (defined below). For purposes of this paragraph, services provided by others will be deemed to have been provided by the Officer if the Officer had material supervisory responsibilities with respect to the provision of such services. The term “Competitor” means an insured depository institution that is or was competitive with any of the business activities of the Company or any of its Subsidiaries during the 12-month period prior to the Officer’s termination of employment or service. The term “Restricted Territory” means the metropolitan statistical areas in which the Bank maintains any offices. .

b.The Officer will not directly or indirectly solicit or attempt to solicit any party who is then, or during the 12-month period prior to the Officer’s termination of employment or service was, a customer or supplier of Bancorp, the Bank or any of their subsidiaries for or with whom the Officer (or the Officer’s subordinates) had Confidential Information or contact on behalf of the Company, provided that the restriction in this Section 2 will not apply to any activity on behalf of a business that is not a Competitor.

c.The Officer will not directly or indirectly solicit, entice, persuade or induce any individual who is employed by Bancorp, the Bank or any of their subsidiaries (or was so employed within ninety (90) calendar days prior to the Officer’s action and not involuntarily terminated for any reason other than cause) to terminate or refrain from renewing or extending such employment or to become employed by or enter into contractual relations with any other individual or entity other than Bancorp, the Bank or any of their subsidiaries, and the Officer will not approach any such employee, either in person or through electronic or social media, for any such purpose or authorize or knowingly cooperate with the taking of any such actions by any other individual or entity.

d.The Officer will not directly or indirectly own an equity interest in any Competitor (other than ownership solely as a passive, minority investor, in any business).

iii.     The Officer shall inform any new employer (before accepting employment) as to the existence and provisions of this Section 10.g.

iv. Notwithstanding anything herein to the contrary, the obligations of the Officer under this Section 10.g shall survive the termination of this Agreement such that the Officer shall be subject to the obligations of this Section 10.g following termination of employment that occurs (a) during the term of this Agreement, (b) upon the conclusion of the term of this

Agreement set forth in Section 3, or (c) following a period of at-will employment subsequent to the expiration of the term of this Agreement.

11.Indemnification and Liability Insurance.

a.Indemnification. The Company agrees to indemnify the Officer (and the Officer’s heirs, executors, and administrators) to the fullest extent permitted under applicable law and regulations against any and all expenses and liabilities reasonably incurred by the Officer in connection with or arising out of any action, suit, or proceeding in which the Officer may be involved by reason of having been a director or officer of the Bank or any of their affiliates (whether or not the Officer continues to be a director or officer at the time of incurring any such expenses or liabilities) such expenses and liabilities to include, but not be limited to, judgments, court costs and attorney’s fees and the cost of reasonable settlements, such settlements to be approved by the Board, if such action is brought against the Officer in the Officer’s capacity as an officer or director of the Bank or any of their affiliates. Indemnification for expense and liability shall not extend to matters for which the Officer has been terminated for Just Cause. Nothing contained herein shall be deemed to provide indemnification prohibited by applicable law or regulation. Notwithstanding anything herein to the contrary, the obligations of this Section 11 shall survive the termination of this Agreement.

b.Insurance. During the period in which indemnification of the Officer is required under this Section 11, Bancorp or the Bank shall provide the Officer (and the Officer’s heirs, executors, and administrators) with coverage under a directors’ and officers’ liability policy at the expense of Bancorp or the Bank, at least equivalent to such coverage provided to directors and senior officers of Bancorp or the Bank, whichever is more favorable to the Officer.

12.Breach of Agreement.Bancorp, the Bank and the Officer expressly agree that in an action brought to enforce this Agreement, the prevailing part(ies) shall be entitled to recover from the opposing part(ies) reasonable attorneys’ fees and costs incurred in enforcing any provision of or any right contained in this Agreement, unless specifically prohibited by statute or regulation, as well as any and all remedies available at law.

13.Adjustment of Certain Payments and Benefits. Notwithstanding any other provision of this Agreement, in the event that the aggregate payments or benefits to be made or afforded to the Officer in connection with any change in control, as defined under Section 280G of the Internal Revenue Code (whether pursuant to the terms of this Agreement or any other plan, arrangement or agreement that the Officer enters into or participates in after the date of this Agreement), that are deemed to be parachute payments as defined in Section 280G or any successor thereof, (the “Covered Benefits”) would constitute an “excess parachute payment” (as defined in Section 280G(b)(2)), then the Covered Benefits shall be reduced to the extent necessary to ensure that no portion of such payments will be subject to the excise tax imposed by Section 4999 of the Internal Revenue Code. The allocation of the reduction required hereby among the Covered Benefits shall occur in the following order: (i) reduction of any lump sum payment payable under Section 10.f.ii, followed by (ii) reduction of other amounts payable under other agreements or plans. Within any of the foregoing categories, a reduction shall occur first with respect to amounts that are not deemed to constitute a “deferral of compensation” within the meaning of and subject to Section 409A of the Internal Revenue Code and then with respect to amounts that are treated as a deferral of compensation, with such reduction being applied in each case to the payments in the reverse order in which they would otherwise be made, that is, later payments shall be reduced before earlier payments. An independent public accountant or compensation consultant selected

by the Bank will determine the value of any reduction in the payments and benefits, and the Bank will pay for the opinion.

14.Work Made for Hire.

a.During the course of the Officer’s employment by the Company, the Officer may, independently or in conjunction with the Company or others, develop information, conceive of inventions, produce work product, or achieve other results for the Company in connection with or as related to Officer’s employment. The Officer agrees that such information, inventions, work product, and other results, systems and information (hereinafter referred to collectively as the “Work Product”) shall, to the extent permitted by law, be a “work made for hire” within the definition of Section 101 of the Copyright Act (17 U.S.C. § 101), and shall remain the sole and exclusive property of the Company.

b.To the extent any Work Product is not deemed to be a work made for hire within the definition of the Copyright Act, the Officer, with effect from creation of any and all Work Product, hereby assigns, and agrees to sign further written documents assigning to the Company all right, title and interest in and to such Work Product, including but not limited to copyright, all rights subsumed thereunder, and all other intellectual property rights, including the right to edit and create derivative works from the materials, and the right to any and all commercial reproduction, transmission, display, performance or distribution of the materials or any derivative works based on the materials via any means currently existing or developed or discovered in the future, and all extensions and renewals thereof.

The Officer further agrees to assist the Company, both during and subsequent to the Officer’s employment with the Company, in the establishment, preservation and enforcement of the Company’s rights in the Work Product. Upon termination of Officer’s employment with the Company (for any reason), the Officer agrees to deliver promptly to the Company all printed, electronic, audio-visual, and other tangible manifestations of the Work Product, including all originals and copies thereof. The Officer also agrees to waive any and all moral rights relating to the Work Product, including but not limited to, any and all rights of identification of authorship and any and all rights of approval, restriction or limitation on use, and subsequent modifications.

15.Injunctive Relief.

a.If there is a breach or threatened breach of Section 10.g. of this Agreement or the prohibitions upon disclosure contained in Section 9.c. of this Agreement, the Company and the Officer agree that there is no adequate remedy at law for such breach, and that Bancorp and the Bank each shall be entitled to injunctive relief restraining the Officer from such breach or threatened breach, but such relief shall not be the exclusive remedy hereunder for such breach.

b.The parties agree that the relevant public policy aspects of covenants not to compete have been discussed, and that every effort has been made to limit the restrictions in Section 10.g placed upon the Officer to those that are reasonable and necessary to protect the Company’s legitimate interests.

c.If any restriction set forth in Section 10.g is found by any court of competent jurisdiction to be unenforceable because it extends for too long a period of time or over too great a range of activities or in too broad a geographic area, it shall be interpreted to extend only

over the maximum period of time, range of activities or geographic area as to which it may be enforceable.

d.The restrictions contained in Section 10.g, Section 9.b and Section 9.c are necessary for the protection of the business and goodwill of the Company and are considered by the Officer to be reasonable for such purpose. The Officer recognizes, acknowledges and agrees that any breach by him of any of the provisions contained in Section 10.g, Section 9.b and/or Section 9.c will cause the Company immediate, material and irreparable injury, harm and damage, and there is no adequate remedy at law for such breach. Accordingly, in the event of a breach of any of the provisions of Section 10.g, Section 9.b and/or Section 9.c by the Officer in addition to any other remedies it may have at law or in equity, the Company shall be entitled immediately to seek enforcement of Section 10.g, Section 9.b and/or Section 9.c in a court of competent jurisdiction by means of a decree of specific performance, an injunction without the posting of a bond or the requirement of any other guarantee, and any other form of equitable relief, in accordance with Section 23. In addition, the Officer recognizes, acknowledges and agrees that the Company is entitled to recover from the Officer the costs and attorneys’ fees it incurs to enforce the terms of this Section or to enforce the terms of this Agreement, as stated in Section 12. This provision is not a waiver of any other rights that the Company may have under this Agreement, including the right to recover money damages.

e.The restrictive periods set forth in this Agreement (including those set forth in Section 10.h) shall not expire and shall be tolled during any period in which the Officer is in violation of such restrictions, and therefore such restrictive periods shall be extended for a period of time equal to the duration of the Officer’s violations thereof.

f.The Officer covenants and agrees that he will promptly disclose the existence of this Agreement and the post-employment restrictions contained herein to all subsequent employers until all such covenants have expired.

16.Successors and Assigns.

a.This Agreement shall inure to the benefit of and be binding upon any corporate or other successor of Bancorp and/or the Bank which shall acquire, directly or indirectly, by merger, consolidation, purchase or otherwise, all or substantially all of the assets or stock of Bancorp and/or the Bank.

a.Since the Company is contracting for the unique and personal skills of the Officer, the Officer’s rights or duties hereunder shall be precluded from assignment or delegation without first obtaining the written consent of the Company.

17.No Mitigation. The Officer shall not be required to mitigate the amount of any payment provided for in this Agreement by seeking other employment or otherwise and no such payment shall be offset or reduced by the amount of any compensation or benefits provided to the Officer in any subsequent employment.

18.Notices. All notices, requests, demands and other communications in connection with this Agreement shall be made in writing and shall be deemed to have been given when delivered by hand, or by the use of a nationally recognized overnight delivery service, or 48 hours after mailing at any general or branch United States Post Office, by certified mail, postage prepaid, addressed as follows, or to such other address as shall have been designated in writing by the addressee:

a.If to the Bank or Bancorp:

Sandy Spring Bancorp, Inc. Sandy Spring Bank

17801 Georgia Avenue

Olney, Maryland 20832

Attention: Daniel J. Schrider, President & CEO

a.If to the Officer, to the Officer’s home address on file with the Bank’s Human Resources Department

19.Joint and Severally Liability; Payments by the Company. To the extent permitted by law, except as otherwise provided herein, the Bank and Bancorp shall be jointly and severally liable for the payment of all amounts due under this Agreement. Bancorp shall guarantee the performance of the Bank’s obligations hereunder, provided that Bancorp shall not be required by this Agreement to pay to the Officer a salary or any bonuses or any other cash payments, except in the event that the Bank does not fulfill the obligations to the Officer hereunder for such payments. Bancorp may, however, pay salary and bonuses as deemed appropriate by its board of directors in the exercise of its discretion.

20.No Plan Created by this Agreement. The Officer and the Company expressly declare and agree that this Agreement was negotiated among them and that no provision or provisions of this Agreement are intended to, or shall be deemed to, create any plan for purposes of the Employee Retirement Income Security Act or any other law or regulation, and, the Bank, Bancorp and the Officer each expressly waives any right to assert the contrary. Any assertion in any judicial or administrative filing, hearing, or process by or on behalf of the Officer or Bancorp or the Bank that such a plan was so created by this Agreement shall be deemed a material breach of this Agreement by the party making such an assertion.

21.Amendments. No amendments or additions to this Agreement shall be binding unless made in writing and signed by all of the parties, except as herein otherwise specifically provided.

22.Applicable Law. Except to the extent preempted by Federal law, the laws of the State of Maryland shall govern this Agreement in all respects, whether as to its terms, provisions, validity, construction, capacity, performance or otherwise, regardless of any principles of conflicts of laws or choice of laws of any jurisdiction.

23.Arbitration.

a.Subject to Section 23.b below, the Officer and the Company mutually agree that any and all disputes, controversies or claims, whether based on contract, tort, discrimination, harassment, retaliation, or otherwise that the parties may have against each other, relating to, arising from, or connected in any manner with this Agreement or with the Officer’s employment with the Company (including, without limitation, the termination or cessation of this Agreement or of the Officer’s employment with the Company), shall be resolved exclusively through final and binding arbitration under the auspices of American Arbitration Association according to its National Rules for the Resolution of Employment Disputes, available on its website www.adr.org. The arbitration shall be held in Maryland. The arbitrators shall have jurisdiction to determine any claim, including the arbitrability of any claim, submitted to him/her. The interpretation and enforceability of this Section 23 of this Agreement shall be governed and construed in accordance with the United States Federal Arbitration Act, 9. U.S.C. §1, et seq. All

statutes of limitations and substantive laws, including but not limited to the remedies that would be available to the parties, that would apply if the dispute was litigated in a court of competent jurisdiction shall govern and apply to the arbitration proceeding. The arbitrator shall not have the authority to add to, detract from, or modify any provision of this Agreement. A transcript of the arbitration proceeding shall be prepared by a qualified court reporter and made available to the parties and the arbitrator. All proceedings and decisions of the arbitrator shall be maintained as confidential to the extent legally permissible and shall not be made public by any party or the arbitrator without the prior written consent of all parties to the arbitration, except as the law may otherwise require. The Company shall pay all expenses, including arbitrator fees, associated with the arbitration with the exception of the attorneys’ fees incurred by the Officer. The arbitrator must render an award within thirty (30) days after the close of the arbitration proceedings. The award must set forth the material findings of fact and legal conclusions supporting the award. The award shall be final, binding, and enforceable by any court of competent jurisdiction. Where necessary or appropriate to effectuate relief, the arbitrator may issue equitable orders as part of or ancillary to the award.

b.Notwithstanding Section 23.a above, and as explained in Section 15, the Company shall be entitled to equitable relief, including injunctive relief and specific performance as against the Officer, for the Officer’s threatened or actual breach of Sections 10.h, 9.b and/or 9.c of this Agreement, as money damages for a breach thereof would be incapable of precise estimation, uncertain, and an insufficient remedy for an actual or threatened breach of those Sections of this Agreement; or to maintain the status quo pending the completion of arbitration in accordance with Section 23.a above. Further, any action or proceeding arising out of or relating to the Officer’s threatened or actual breach of Sections 10.h, 9.c and/or 9.b of this Agreement, and any claim deemed not to be subject to arbitration under Section 23.a shall be brought and heard exclusively in the state courts of the State of Maryland and, if the jurisdictional prerequisites exist at the time, the United States District Court for Maryland and the parties hereby expressly represent and agree that they are subject to the personal jurisdiction of said courts, and each of the parties hereby irrevocably consents to the personal jurisdiction of such courts in any legal or equitable proceedings related to such dispute and waives, to the fullest extent permitted by law, any objection which either party may now or hereafter have that the laying of the venue of any legal or equitable proceedings related to such dispute which is brought in any such court is improper or that such proceedings have been brought in an inconvenient forum. The parties agree and acknowledge that Maryland is the State of the headquarters of the Company and the principal office of the Company and is the State with the most logical nexus to this Agreement. The parties recognize that, if any dispute or controversy arising from or relating to this Agreement is submitted for adjudication to any court, the preservation of the secrecy of Confidential Information or Trade Secrets may be jeopardized, consequently, the parties agree that all issues of fact shall be tried without a jury.

24.Severability. The provisions of this Agreement shall be deemed severable and the invalidity or unenforceability of any provision shall not affect the validity or enforceability of the other provisions hereof.

25.Headings and Pronouns. Headings contained herein are for convenience of reference only. Whenever the context may require, any pronouns used in this Agreement shall include the corresponding masculine, feminine or neutral forms, and the singular forms of nouns and pronouns shall include the plural and vice versa.

26.Entire Agreement. This Agreement, together with any understanding or modifications thereof as subsequently agreed to in writing by the parties, shall constitute the entire agreement among the parties hereto with respect to the subject matter hereof, other than written agreements with respect to specific plans, programs, or arrangements described in Sections 5 and 6 of this Agreement, and supersedes all prior agreements other than with respect to such specific plans, programs, or arrangements; provided, however, that this Agreement shall not supersede the Settlement and Release Agreement entered into as of even date herewith by and among the Officer, Bancorp, the Bank, and Revere Bank, which shall remain in full force and effect.

27.Section 409A.

a.The Officer will be deemed to have a termination of employment for purposes of determining the timing of any payments that are classified as deferred compensation only upon a “separation from service” within the meaning of Section 409A of the Internal Revenue Code.

b.To the extent necessary to comply with Section 409A, in no event may the Officer, directly or indirectly, designate the taxable year of payment. In particular, to the extent necessary to comply with Section 409A, if payment to the Officer under this Agreement is conditioned upon the Officer executing and not revoking a Release and if the designated payment period for such payment begins in one taxable year and ends in the next taxable year, the payment will be made in the later taxable year.

c.If at the time of the Officer’s separation from service, (a) the Officer is a “specified employee” (within the meaning of Section 409A and using the methodology selected by the Bank and Bancorp) and (b) the Company makes a good faith determination that an amount payable or the benefits to be provided hereunder constitutes deferred compensation (within the meaning of Section 409A), the payment of which is required to be delayed pursuant to the six-month delay rule of Section 409A in order to avoid taxes or penalties under Section 409A, then the Company will not pay the entire amount on the otherwise scheduled payment date but will instead pay on the scheduled payment date the maximum amount permissible in order to comply with Section 409A (i.e., any amount that satisfies an exception under the Section 409A rules from being categorized as deferred compensation) and will pay the remaining amount (if any) in a lump sum on the first business day after such six month period.

d.This Agreement will be construed and administered to preserve the exemption from Section 409A of the Internal Revenue Code of 1986, as amended, and the guidance thereunder (“Section 409A”) of payments that qualify as short-term deferrals pursuant to Treas. Reg. §1.409A-1(b)(4) or that qualify for the two-times compensation exemption of Treas. Reg. §1.409A-1(b)(9)(iii). With respect to other amounts that are subject to Section 409A, it is intended, and this letter agreement will be so construed, that any such amounts payable under this Agreement and the Company’s and the Officer’s exercise of authority or discretion hereunder shall comply with the provisions of Section 409A so as not to subject the Officer to the payment of interest and additional tax that may be imposed under Section 409A.

e.To the extent that any expense reimbursement provided for by this Agreement does not qualify for exclusion from Federal income taxation, the Company will make the reimbursement only if the Officer incurs the corresponding expense during the Officer’s employment with the Company and submits the request for reimbursement to the Company no later than three months prior to the last day of the calendar year following

the calendar year in which the Officer incurs the expense so that the Company can make the reimbursement on or before the last day of the calendar year following the calendar year in which the Officer incurs the expense; the amount of expenses eligible for reimbursement during a calendar year will not affect the amount of expenses eligible for reimbursement in another calendar year; and the Officer’s right to reimbursement is not subject to liquidation or exchange for another benefit from the Company.

[Signature page follows]

IN WITNESS WHEREOF the parties hereto have executed this Agreement on the date first set forth above.

SANDY SPRING BANCORP, INC.

By: /s/ Daniel J. Schrider

Name: Daniel J. Schrider

Title: President and CEO

SANDY SPRING BANK

By: /s/ Daniel J. Schrider

Name: Daniel J. Schrider

Title: President and CEO

OFFICER:

/s/ Kenneth C. Cook

Name: Kenneth C. Cook

EXHIBIT A

RELEASE OF CLAIMS

In consideration for the severance payment set forth in Section 10.f.ii. of the Employment Agreement by and between Kenneth C. Cook and Sandy Spring Bank (the “Bank”) dated September 23, 2019 (the “Employment Agreement”), Executive agrees forever to release any right to recover against the Bank, its parents, and subsidiaries; and each of their owners, stockholders, predecessors, successors, assigns, agents, directors, officers, employees, representatives, insurers, attorneys, divisions, and subsidiaries; and all persons acting by, under, or in concert with them (collectively, the “Released Parties”), of and from any and all charges, claims, complaints, demands, liabilities, causes of action, losses, costs or expenses of any kind whatsoever (including related attorneys' fees and costs), known or unknown, suspected or unsuspected, that I may now have or have ever had against the Released Parties by reason of any act, omission, transaction, or event occurring up to and including the date of the signing of this Release of Claims.

This waiver, release and discharge (“Release”) includes without limitation, claims related to any wrongful or unlawful discharge, discipline or retaliation, whether express or implied, any promotions or demotions, compensation, the Bank or Sandy Spring Bancorp, Inc. (“Company”) benefit plan(s) and the management thereof, defamation, slander, libel, invasion of privacy, misrepresentation, fraud, infliction of emotional distress, stress, breach of any covenant of good faith and fair dealing, and any other claims relating to my employment with the Bank and the termination thereof. This Release further applies but is not limited to any claim of any types of discrimination under the Age Discrimination in Employment Act, the Older Workers Benefit Protection Act, the Worker Adjustment and Retraining Notification Act, Title VII of the Civil Rights Act of 1964, as amended, the Americans with Disabilities Act, claims for emotional distress, mental anguish, personal injury, loss of consortium; any and all claims that may be asserted on my behalf by others (including the Equal Employment Opportunity Commission), or any other federal, state, or local law, rule, regulation including those relating to discrimination to the extent permitted by law.

Executive expressly waive all claims, including those which he does not know or suspect to exist in my favor as of the date of this Agreement against the Released Parties. As used herein, Executive understands the word "claims" to include all actions, claims, and grievances, whether actual or potential, known or unknown, and specifically but not exclusively including all claims against the Bank or the Company or otherwise arising from his employment with the Bank, his termination of employment from the Bank or any other conduct occurring on or prior to the date the Executive signs this Release. All such claims are forever barred by this Release whether they arise in contract or tort or under a statute or any other law.

This Release shall not be interpreted to waive, release, or extinguish any rights that – by express and unequivocal terms of law — may not under any circumstances be waived, released, or extinguished, and this Agreement does not prohibit the Executive from filing a charge with or participating in an investigation conducted by the Securities and Exchange Commission.

Notwithstanding anything in this Release to the contrary, this Release shall not release the Bank or the Company from any of the following obligations: (i) obligations to pay to Executive earned but unpaid wages; (ii) the payment of any of vested benefits under any tax-qualified and non- qualified plans of which Executive is a participant; or (iii) Executive’s right to elect health care continuation coverage pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”) at his own expense (if he is eligible for COBRA coverage). Finally, this Release does not waive claims that Executive could make, if available, for unemployment or workers’ compensation.

INJUNCTIVE RELIEF. Executive acknowledges and recognizes that a violation of this Release and its covenants will cause irreparable damage to the Bank, the Company and successors of the Bank and the Company, and the Bank, the Company and respective successors will have no adequate remedy at law for

such violation. Accordingly, I agree that the Seller and its successors will be entitled, as a matter of right, to seek an injunction from any court of competent jurisdiction restraining any further violation of this Release or the terms and conditions provided herein. This right to injunctive relief will be cumulative and in addition to whatever remedies the parties may otherwise have at law.

CONSIDERATION AND REVOCATION PERIOD. Executive acknowledges that he was advised to consult with an attorney before signing this Release. Executive further understands that he may consider this Release for up to twenty-one (21) days before deciding whether to sign it. If Executive signs this Release before the expiration of that twenty-one (21) day period, he acknowledges that such decision was entirely voluntary. Executive understands that if he does not sign and return this Release to the Bank by the end of that twenty-one (21) day period, the obligation to pay any severance under the Agreement will expire. Executive understands that for a period of seven (7) days after Executive executes this Release, Executive has the right to revoke it by a written notice to be received by the Bank by the end of that period. Executive also understands that this Release shall not be effective or enforceable until the expiration of that seven (7) day period. Executive further represents and agrees that he has carefully read and fully understand all of the provisions of this Release and that he is voluntarily agreeing to those provisions. Executive acknowledges that he has not been induced to sign this Release by any representatives of any released party other than the severance amount in Section 10.f.ii. of the Employment Agreement.

IN WITNESS WHEREOF, Executive has executed this Release of Claims.

EXECUTIVE

Date:

EX-21

Exhibit 21

Subsidiaries of the Registrant

Name	Jurisdiction of Incorporation
Sandy Spring Bank	Maryland
Sandy Spring Insurance Corporation*	Maryland
West Financial Services, Inc.*	Maryland
SSB Wealth Management, Inc.*(1)	Maryland

__________

*Direct subsidiary of Sandy Spring Bank

(1) Does business under the name “Rembert Pendleton Jackson”.

EX-23

Exhibit 23

Consent of Independent Registered Public Accounting Firm

We consent to the incorporation by reference in the following Registration Statements:

(1) Registration Statement (Form S-8 No. 333-126701) pertaining to the Sandy Spring Bancorp, Inc. 2005 Omnibus Stock Plan,

(2) Registration Statement (Form S-8 No. 333-204746) pertaining to the Sandy Spring Bancorp, Inc. 2015 Omnibus Incentive Plan and Sandy Spring Bank 401(k) Plan,

(3) (4)	Registration Statement (Form S-8 No. 333-235279) pertaining to the Revere Bank 2013 Equity Compensation Plan, Revere Bank 2008 Equity Compensation Plan, and Blue Ridge Bank 2008 Stock Option Plan, Registration Statement (Form S-8 No. 333-250740) pertaining to the Sandy Spring Bancorp, Inc. Employee Stock Purchase Plan, as amended and restated, and
(5)	Registration Statement (Form S-3 No. 333-253367) of Sandy Spring Bancorp, Inc.

of our reports dated February 18, 2022, with respect to the consolidated financial statements of Sandy Spring Bancorp, Inc. and subsidiaries, and the effectiveness of internal control over financial reporting of Sandy Spring Bancorp, Inc. and subsidiaries included in this Annual Report (Form 10-K) of Sandy Spring Bancorp, Inc. and subsidiaries for the year ended December 31, 2021.

/s/ Ernst & Young LLP

Tysons, Virginia

February 18, 2022

EX-31.A

Exhibit 31 (a)

CERTIFICATION

Rule 13a-14(a) / 15d-14(a) Certifications

I, Daniel J. Schrider, President and Chief Executive Officer of Sandy Spring Bancorp, Inc. (“Bancorp”), certify that:

1.I have reviewed this annual report on Form 10-K of Sandy Spring Bancorp, Inc.

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d--15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such  disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based upon such evaluation; and

d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: February 18, 2022	/s/ Daniel J. Schrider
	Daniel J. Schrider
	President and
	Chief Executive Officer

EX-31.B

Exhibit 31 (b)

CERTIFICATION

Rule 13a-14(a) / 15d-14(a) Certifications

I, Philip J. Mantua, Executive Vice President and Chief Financial Officer of Sandy Spring Bancorp, Inc. (“Bancorp”), certify that:

1.I have reviewed this annual report on Form 10-K of Sandy Spring Bancorp, Inc.

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d--15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such  disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based upon such evaluation; and

d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: February 18, 2022	/s/ Philip J. Mantua
	Philip J. Mantua
	Executive Vice President and
	Chief Financial Officer

EX-32.A

Exhibit 32(a)

18 U.S.C. Section 1350 Certification

I hereby certify pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, to the best of my knowledge and belief, that the accompanying Form 10-K of Sandy Spring Bancorp, Inc. ("Bancorp") for the period ended December 31, 2021, fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and that the information contained in this Form 10-K fairly presents, in all material respects, the financial condition and results of operations of Bancorp.

By:	/s/ Daniel J. Schrider
	Daniel J. Schrider
	President and Chief Executive Officer
	Date: February 18, 2022

EX-32.B

Exhibit 32(b)

18 U.S.C. Section 1350 Certification

I hereby certify pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, to the best of my knowledge and belief, that the accompanying Form 10-K of Sandy Spring Bancorp, Inc. ("Bancorp") for the period ended December 31, 2021, fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and that the information contained in this Form 10-K fairly presents, in all material respects, the financial condition and results of operations of Bancorp.

By:	/s/ Philip J. Mantua
	Philip J. Mantua
	Executive Vice President and Chief Financial Officer
	Date: February 18, 2022

XML

COVER - USD ($)
$ in Billions

12 Months Ended

Dec. 31, 2021

Feb. 16, 2022

Jun. 30, 2021

Cover [Abstract]

Document Type

10-K

Document Annual Report

true

Document Period End Date

Dec. 31, 2021

Current Fiscal Year End Date

--12-31

Document Transition Report

false

Entity File Number

0-19065

Entity Registrant Name

SANDY SPRING BANCORP, INC.

Entity Incorporation, State or Country Code

MD

Entity Tax Identification Number

52-1532952

Entity Address, Address Line One

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

Title of 12(b) Security

Common Stock, par value $1.00 per share

Trading Symbol

SASR

Security Exchange Name

NASDAQ

Entity Well-known Seasoned Issuer

Yes

Entity Voluntary Filers

No

Entity Current Reporting Status

Yes

Entity Interactive Data Current

Yes

Entity Filer Category

Large Accelerated Filer

Entity Small Business

false

Entity Emerging Growth Company

false

ICFR Auditor Attestation Flag

true

Entity Shell Company

false

Entity Public Float

$ 2.0

Entity Common Stock, Shares Outstanding

45,131,555

Documents Incorporated by Reference

Documents Incorporated By Reference

Part III: Portions of the definitive proxy statement for the Annual Meeting of Shareholders to be held on May 18, 2022 (the "Proxy Statement").

Amendment Flag

false

Document Fiscal Year Focus

2021

Document Fiscal Period Focus

FY

Entity Central Index Key

0000824410

XML

AUDIT INFORMATION	12 Months Ended
	Dec. 31, 2021
Audit Information [Abstract]
Auditor Firm ID	42
Auditor Name	Ernst & Young LLP
Auditor Location	Tysons, VA

XML

CONSOLIDATED STATEMENTS OF CONDITION - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Assets
Cash and due from banks	$ 65,630	$ 93,651
Federal funds sold	312	291
Interest-bearing deposits with banks	354,078	203,061
Cash and cash equivalents	420,020	297,003
Residential mortgage loans held for sale (at fair value)	39,409	78,294
Investments available-for-sale (at fair value)	1,465,896	1,348,021
Equity securities	41,166	65,760
Total loans	9,967,091	10,400,509
Less: allowance for credit losses	(109,145)	(165,367)
Net loans	9,857,946	10,235,142
Premises and equipment, net	59,685	57,720
Other real estate owned	1,034	1,455
Accrued interest receivable	34,349	46,431
Goodwill	370,223	370,223
Other intangible assets, net	25,920	32,521
Other assets	275,078	265,859
Total assets	12,590,726	12,798,429
Liabilities
Noninterest-bearing deposits	3,779,630	3,325,547
Interest-bearing deposits	6,845,101	6,707,522
Total deposits	10,624,731	10,033,069
Securities sold under retail repurchase agreements and federal funds purchased	141,086	543,157
Advances from FHLB	0	379,075
Subordinated debt	172,712	227,088
Total borrowings	313,798	1,149,320
Accrued interest payable and other liabilities	132,518	146,085
Total liabilities	11,071,047	11,328,474
Stockholders' equity
Common stock	45,119	47,057
Additional paid-in capital	751,072	846,922
Retained earnings	732,027	557,271
Accumulated other comprehensive income/ (loss)	(8,539)	18,705
Total stockholders' equity	1,519,679	1,469,955
Total liabilities and stockholders' equity	$ 12,590,726	$ 12,798,429

XML

CONSOLIDATED STATEMENTS OF CONDITION - (Parenthetical) - $ / shares	Dec. 31, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 1.00	$ 1.00
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, shares issued (in shares)	45,118,930	47,056,777
Common stock, shares outstanding (in shares)	45,118,930	47,056,777

XML

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Interest income:
Interest and fees on loans	$ 423,152	$ 393,477	$ 316,550
Interest on loans held for sale	1,736	1,686	1,607
Interest on deposits with banks	725	446	2,129
Interest and dividends on investment securities:
Taxable for federal income taxes	16,118	22,136	21,739
Exempt from federal income taxes	8,552	5,814	5,834
Interest on federal funds sold	1	1	10
Total interest income	450,284	423,560	347,869
Interest expense:
Interest on deposits	15,022	41,651	61,681
Interest on retail repurchase agreements and federal funds purchased	182	1,965	1,161
Interest on advances from FHLB	2,649	6,593	16,578
Interest on subordinated debt	7,913	10,192	3,141
Total interest expense	25,766	60,401	82,561
Net interest income	424,518	363,159	265,308
Provision/ (credit)	(45,556)	85,669	4,684
Net interest income after provision/ (credit) for credit losses	470,074	277,490	260,624
Non-interest income:
Investment securities gains	212	467	77
Insurance agency commissions	7,017	6,795	6,612
Income from bank owned life insurance	3,022	2,867	3,165
Other income	15,317	9,221	8,780
Total non-interest income	102,055	102,716	71,322
Non-interest expense:
Salaries and employee benefits	155,830	134,471	103,950
Occupancy expense of premises	22,405	21,383	19,470
Equipment expenses	12,883	12,224	10,720
Marketing	4,730	4,281	4,456
Outside data services	8,983	8,759	7,567
FDIC insurance	4,294	4,727	2,260
Amortization of intangible assets	6,600	6,221	1,946
Merger and acquisition expense	45	25,174	1,312
Professional fees and services	10,308	7,939	6,978
Other expenses	34,392	30,603	20,426
Total non-interest expense	260,470	255,782	179,085
Income before income tax expense	311,659	124,424	152,861
Income tax expense	76,552	27,471	36,428
Net income	$ 235,107	$ 96,953	$ 116,433
Earnings Per Share [Abstract]
Basic net income per common share (in dollars per share)	$ 5.00	$ 2.19	$ 3.25
Diluted net income per common share (in dollars per share)	4.98	2.18	3.25
Dividends declared per share (in dollars per share)	$ 1.28	$ 1.20	$ 1.18
Service charges on deposit accounts
Non-interest income:
Fees and commissions, mortgage banking and servicing	$ 8,241	$ 7,066	$ 9,692
Mortgage banking activities
Non-interest income:
Fees and commissions, mortgage banking and servicing	24,509	40,058	14,711
Wealth management income
Non-interest income:
Fees and commissions, mortgage banking and servicing	36,841	30,570	22,669
Bank card fees
Non-interest income:
Fees and commissions, mortgage banking and servicing	$ 6,896	$ 5,672	$ 5,616

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Statement of Comprehensive Income [Abstract]
Net income	$ 235,107	$ 96,953	$ 116,433
Investments available-for-sale:
Net change in unrealized gains/ (losses) on investments available-for-sale	(38,104)	32,950	14,429
Related income tax expense/ (benefit)	9,751	(8,428)	(3,742)
Net investment gains reclassified into earnings	(212)	(467)	(77)
Related income tax expense	54	120	20
Net effect on other comprehensive income/ (loss)	(28,511)	24,175	10,630
Defined benefit pension plan:
Net change of unrealized (gain)/ loss	1,687	(1,542)	1,175
Related income tax expense/ (benefit)	(420)	404	(383)
Net effect on other comprehensive income/ (loss)	1,267	(1,138)	792
Total other comprehensive income/ (loss)	(27,244)	23,037	11,422
Comprehensive income	$ 207,863	$ 119,990	$ 127,855

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CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Revision of Prior Period, Accounting Standards Update, Adjustment	Common Stock	Additional Paid-In Capital	Retained Earnings	Retained Earnings Revision of Prior Period, Accounting Standards Update, Adjustment	Accumulated Other Comprehensive Income/ (Loss)
Balance at beginning of period at Dec. 31, 2018	$ 1,067,903		$ 35,531	$ 606,573	$ 441,553		$ (15,754)
Net income	116,433				116,433
Other comprehensive income, net of tax	11,422						11,422
Total other comprehensive income	127,855
Common stock dividends	(42,272)				(42,272)
Stock compensation expense	3,042			3,042
Stock option plan	334		15	319
Directors stock purchase plan	30		1	29
Employee stock purchase plan	1,069		37	1,032
Restricted stock vesting, net of tax withholding	(703)		54	(757)
Repurchase of common stock	(24,284)		(668)	(23,616)
Balance at end of period at Dec. 31, 2019	1,132,974	$ (2,221)	34,970	586,622	515,714	$ (2,221)	(4,332)
Net income	96,953				96,953
Other comprehensive income, net of tax	23,037						23,037
Total other comprehensive income	119,990
Common stock dividends	(53,175)				(53,175)
Stock compensation expense	3,850			3,850
Acquisition	289,089		12,769	276,320
Stock option plan	316		27	289
Conversion of stock options	3,611			3,611
Employee stock purchase plan	1,681		65	1,616
Restricted stock vesting, net of tax withholding	(458)		46	(504)
Repurchase of common stock	(25,702)		(820)	(24,882)
Balance at end of period at Dec. 31, 2020	1,469,955		47,057	846,922	557,271		18,705
Net income	235,107				235,107
Other comprehensive income, net of tax	(27,244)						(27,244)
Total other comprehensive income	207,863
Common stock dividends	(60,351)				(60,351)
Stock compensation expense	5,299			5,299
Stock option plan	3,694		270	3,424
Employee stock purchase plan	2,064		60	2,004
Restricted stock vesting, net of tax withholding	(1,577)		82	(1,659)
Repurchase of common stock	(107,268)		(2,350)	(104,918)
Balance at end of period at Dec. 31, 2021	$ 1,519,679		$ 45,119	$ 751,072	$ 732,027		$ (8,539)

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CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Statement of Stockholders' Equity [Abstract]
Common stock dividends (in dollars per share)	$ 1.28	$ 1.20	$ 1.18
Revere Bank acquisition (in shares)		12,768,949
Stock option plan (in shares)	270,297	26,063	15,080
Director stock purchase plan (in shares)			867
Conversion of Revere stock options (in shares)		395,298
Employee stock purchase plan (in shares)	60,018	65,337	37,091
Restricted stock vesting, net of tax withholding (in shares)	81,838	46,386	54,789
Repurchase of common stock (in shares)	(2,350,000)	(820,328)	(668,191)
Accounting Standards Update [Extensible Enumeration]			Accounting Standards Update 2016-13 [Member]

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Operating activities:
Net income	$ 235,107	$ 96,953	$ 116,433
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	14,522	19,873	13,398
Provision/ (credit) for credit losses	(45,556)	85,669	4,684
Share based compensation expense	5,299	3,850	3,042
Deferred income tax / (benefit)	12,255	(29,568)	1,719
Origination of loans held for sale	(1,385,664)	(1,576,865)	(887,216)
Proceeds from sales of loans held for sale	1,456,110	1,585,690	869,294
Gains on sales of loans held for sale	(31,561)	(33,418)	(13,006)
Losses on sale of other real estate owned	241	32	173
Investment securities gains	(212)	(467)	(77)
Loss on sales of premises and equipment	0	0	269
Tax (benefit)/ expense associated with share based compensation	(1,850)	(133)	92
Net (increase)/ decrease in accrued interest receivable	12,082	(15,499)	1,327
Net (increase)/ decrease other assets	(35,498)	1,500	(3,664)
Net increase/ (decrease) accrued expenses and other liabilities	(20,771)	1,704	(5,804)
Other, net	1,894	2,660	(721)
Net cash provided by operating activities	216,398	141,981	99,943
Investing activities:
Sales/ (purchases) of equity securities	24,594		21,586
Sales/ (purchases) of equity securities		(3,553)
Purchases of investments available-for-sale	(933,491)	(633,741)	(326,604)
Proceeds from sales of investment available-for-sale	400,567	121,357	2,926
Proceeds from maturities, calls and principal payments of investments available-for-sale	369,678	441,672	199,652
Net (increase)/ decrease in loans	457,724	(1,174,467)	(134,012)
Proceeds from the sales of other real estate owned	680	60	324
Cash paid for the acquisition of business activity of RPJ, net of cash acquired	0	(26,925)	0
Cash acquired in the acquisition of business activity of Revere Bank, net of cash paid	0	80,442	0
Expenditures for premises and equipment	(11,491)	(5,041)	(5,148)
Net cash provided by/ (used in) investing activities	308,261	(1,200,196)	(241,276)
Financing activities:
Net increase in deposits	595,942	1,270,328	525,439
Net increase/ (decrease) in in retail repurchase agreements and federal funds purchased	(402,071)	329,552	(113,824)
Proceeds from advances from borrowings	0	400,000	2,298,000
Repayment of advances from borrowings	(379,075)	(703,117)	(2,457,834)
Retirement of subordinated debt	(53,000)	(10,310)	0
Proceeds from issuance of common stock	5,758	1,997	1,433
Stock tendered for payment of withholding taxes	(1,577)	(458)	(703)
Repurchase of Common Stock	(107,268)	(25,702)	(24,284)
Dividends paid	(60,351)	(53,175)	(42,272)
Net cash provided by/ (used in) financing activities	(401,642)	1,209,115	185,955
Net increase in cash and cash equivalents	123,017	150,900	44,622
Cash and cash equivalents at beginning of year	297,003	146,103	101,481
Cash and cash equivalents at end of year	420,020	297,003	146,103
Supplemental Disclosures:
Interest payments	37,847	62,637	84,448
Income tax payments, net of refunds of $2,673 in 2021	71,908	56,430	33,795
Transfers from loans to other real estate owned	$ 257	$ 70	$ 414

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CONSOLIDATED STATEMENTS OF CASH FLOWS - Parenthetical $ in Thousands	12 Months Ended
	Dec. 31, 2021 USD ($)
Statement of Cash Flows [Abstract]
Income tax refunds	$ 2,673

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SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES

Nature of Operations

Sandy Spring Bancorp, Inc. ("Sandy Spring" or, together with its subsidiaries, the "Company"), a Maryland corporation, is the bank holding company for Sandy Spring Bank (the “Bank”), which conducts a full-service commercial banking, mortgage banking and trust business. Services to individuals and businesses include accepting deposits, extending credit to buy real estate or equipment, consumer and commercial loans and lines of credit, general insurance, personal trust, and investment and wealth management services. The Company operates in central Maryland, Northern Virginia, and the greater Washington D.C. market. The Company offers investment and wealth management services through the Bank’s subsidiaries, West Financial Services ("West Financial") and Rembert Pendleton Jackson ("RPJ"). Insurance products are available to clients through Sandy Spring Insurance Corporation ("Sandy Spring Insurance"), and Neff & Associates, which are agencies of Sandy Spring Insurance.

Basis of Presentation

The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (“GAAP”) and prevailing practices within the financial services industry for financial information. The following summary of significant accounting policies of the Company is presented to assist the reader in understanding the financial and other data presented in this report. The Company has evaluated subsequent events through the date of the issuance of its financial statements.

Principles of Consolidation

The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, Sandy Spring Bank and its subsidiaries, Sandy Spring Insurance, West Financial and RPJ. Consolidation has resulted in the elimination of all significant intercompany accounts and transactions. See Note 25 for more information on the Company's segments and consolidation.

Use of Estimates

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, in addition to affecting the reported amounts of revenues earned and expenses incurred during the reporting period. Actual results could differ from those estimates. Estimates that could change significantly relate to the provision for credit losses and the related allowance, potential impairment of goodwill or other intangible assets, valuation of investment securities and the determination of whether available-for-sale debt securities with fair values less than amortized costs are impaired and require an allowance for credit losses, valuation of other real estate owned, valuation of share based compensation, the assessment that a liability should be recognized with respect to any matters under litigation, the calculation of current and deferred income taxes, and the actuarial projections related to pension expense and the related liability.

Assets Under Management

Assets held for others under fiduciary and agency relationships are not assets of the Company or its subsidiaries and are not included in the accompanying Consolidated Statements of Condition. Trust department income and investment management fees are presented on an accrual basis.

Cash Flows

For purposes of reporting cash flows, cash and cash equivalents include cash and due from banks, federal funds sold and interest-bearing deposits with banks (items with an original maturity of three months or less).

Revenue from Contracts with Customers

The Company’s revenue includes net interest income on financial instruments and non-interest income. Specific categories of revenue are presented in the Consolidated Statements of Income. Most of the Company’s revenue is not within the scope of Accounting Standard Codification (“ASC”) 606 – Revenue from Contracts with Customers. For revenue within the scope of ASC 606, the Company provides services to customers and has related performance obligations. The revenue from such services is recognized upon satisfaction of all contractual performance obligations. The following discusses key revenue streams within the scope of revenue recognition guidance.

Wealth Management Income

West Financial and RPJ provide comprehensive investment management and financial planning services. Wealth management income is comprised of income for providing trust, estate and investment management services. Trust services include acting as a trustee for corporate or personal trusts. Investment management services include investment management, record-keeping and reporting of security portfolios. Fees for these services are recognized based on a contractually-agreed fixed percentage applied to net assets under management at the end of each reporting period. The Company does not charge/recognize any performance-based fees.

Insurance Agency Commissions

Sandy Spring Insurance, a subsidiary of the Bank, performs the function of an insurance intermediary by introducing the policyholder and insurer and is compensated by a commission fee for placement of an insurance policy. Sandy Spring Insurance does not provide any captive management services or any claim handling services. Commission fees are set as a percentage of the premium for the insurance policy for which Sandy Spring Insurance is a producer. Sandy Spring Insurance recognizes revenue when the insurance policy has been contractually agreed to by the insurer and policyholder (at transaction date).

Service Charges on Deposit Accounts

Service charges on deposit accounts are earned on depository accounts for consumer and commercial account holders and include fees for account and overdraft services. Account services include fees for event-driven services and periodic account maintenance activities. An obligation for event-driven services is satisfied at the time of the event when service is delivered and revenue recognized as earned. Obligation for maintenance activities is satisfied over the course of each month and revenue is recognized at month end. The overdraft services obligation is satisfied at the time of the overdraft and revenue is recognized as earned.

Residential Mortgage Loans Held for Sale

The Company engages in sales of residential mortgage loans originated by the Bank. Loans held for sale are carried at fair value. Fair value is derived from secondary market quotations for similar instruments. The Company measures residential mortgage loans at fair value when the Company first recognizes the loan (i.e., the fair value option). Changes in fair value of these loans are recorded in earnings as a component of mortgage banking activities in non-interest income in the Consolidated Statements of Income. The Company's current practice is to sell the majority of such loans on a servicing released basis. Any retained servicing assets are amortized in proportion to their net servicing fee income over the life of the respective loans. Servicing assets are evaluated for impairment on a periodic basis.

Investments Available-for-Sale

Debt securities not classified as held-to-maturity or trading are classified as securities available-for-sale. Securities available-for-sale are acquired as part of the Company's asset/liability management strategy and may be sold in response to changes in interest rates, loan demand, changes in prepayment risk or other factors. Securities available-for-sale are carried at fair value, with unrealized gains or losses based on the difference between amortized cost and fair value, reported net of deferred tax, as accumulated other comprehensive income/ (loss), a separate component of stockholders' equity. The carrying values of securities available-for-sale are adjusted for premium amortization and discount accretion. Premium is amortized to the earliest call date and discount accreted to the maturity date using the effective interest method. Realized gains and losses on security sales or maturities, using the specific identification method, are included as a separate component of non-interest income. Related interest and dividends are included in interest income. Declines in the fair value of individual available-for-sale securities below their amortized cost due to credit-related factors are recognized as an allowance for credit losses. Credit-related factors affecting the determination of whether impairment has occurred include a downgrading of the security below investment grade by a rating agency or due to potential default, a significant deterioration in the financial condition of the issuer, increase in entity-specific credit spreads. Additionally, on any available-for-sale securities with unrealized losses, the Company evaluates its intent and ability to hold the investment for a period of time sufficient to allow for any anticipated recovery in fair value.

Equity Securities

Equity securities include Federal Reserve Bank stock, Federal Home Loan Bank of Atlanta ("FHLB") stock and other equities that are considered restricted as to marketability and recorded at cost. As these securities do not have readily available market values, they are carried at cost and adjusted for any necessary impairments each reporting period.

Loan Financing Receivables

The Company’s financing receivables consist primarily of loans that are stated at their principal balance outstanding, net of any unearned income, acquisition fair value marks and deferred loan origination fees and costs. Interest income on loans is accrued at the contractual rate based on the principal balance outstanding. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the interest method.

Loans are considered past due or delinquent when the principal or interest due in accordance with the contractual terms of the loan agreement or any portion thereof remains unpaid after the due date of the scheduled payment. Immaterial shortfalls in payment amounts do not necessarily result in a loan being considered delinquent or past due. If any payments are past due and subsequent payments are resumed without payment of the delinquent amount, the loan shall continue to be considered past due. Whenever any loan is reported delinquent on a principal or interest payment or portion thereof, the amount reported as delinquent is the outstanding principal balance of the loan.

Loans, except for consumer installment loans, are placed into non-accrual status when any portion of the loan principal or interest becomes 90 days past due. Management may determine that certain circumstances warrant earlier discontinuance of interest accruals on specific loans if an evaluation of other relevant factors (such as bankruptcy, interruption of cash flows, etc.) indicates collection of amounts contractually due is unlikely. These loans are considered, collectively, to be non-performing loans. Consumer installment loans that are not secured by real estate are not placed on non-accrual, but are charged down to their net realizable value when they are four months past due. Loans designated as non-accrual have all previously accrued but unpaid interest reversed. Interest income is not recognized on non-accrual loans. All payments received on non-accrual loans are applied using a cost-recovery method to reduce the outstanding principal balance until the loan returns to accrual status. Loans may be returned to accrual status when all principal and interest amounts contractually due are brought current and future payments are reasonably assured.

Loans considered to be TDRs are loans that have their terms restructured (e.g., interest rates, loan maturity date, payment and amortization period, etc.) in circumstances that provide payment relief to a borrower experiencing financial difficulty. All restructured collateral-dependent loans are individually assessed for allowance for credit losses and may either be in accruing or non-accruing status. Non-accruing restructured loans may return to accruing status provided doubt has been removed concerning the collectability of principal and interest as evidenced by a sufficient period of payment performance in accordance with the restructured terms. Loans may be removed from the restructured category if the borrower is no longer experiencing financial difficulty, a re-underwriting event took place, and the revised loan terms of the subsequent restructuring agreement are considered to be consistent with terms that can be obtained in the market for loans with comparable credit risk.

Allowance for Credit Losses

On January 1, 2020, the Company adopted the provisions of ASU No. 2016-13, Current Expected Credit Losses. The allowance for credit losses (“allowance” or “ACL”) represents an amount which, in management's judgment, reflects the lifetime expected losses that may be sustained on outstanding loans at the balance sheet date based on the evaluation of the size and current risk characteristics of the loan portfolio, past events, current conditions, reasonable and supportable forecasts of future economic conditions and prepayment experience. The allowance is measured and recorded upon the initial recognition of a financial asset. The allowance is reduced by charge-offs, net of recoveries of previous losses, and is increased or decreased by a provision or credit for credit losses, which is recorded as a current period expense.

Determination of the appropriateness of the allowance is inherently complex and requires the use of significant and highly subjective estimates. The reasonableness of the allowance is reviewed periodically by the Risk Committee of the Board of Directors and formally approved quarterly by that same committee of the Board.

The Company’s methodology for estimating the allowance includes: (1) a collective quantified reserve that reflects the Company’s historical default and loss experience adjusted for expected economic conditions throughout a reasonable and supportable period and the Company’s prepayment and curtailment rates; (2) collective qualitative factors that consider the expected impact of certain factors not fully captured in the collective quantified reserve, including concentrations of the loan portfolio, expected changes to the economic forecasts, large relationships, early delinquencies, and factors related to credit administration, including, among others, loan-to-value ratios, borrowers’ risk rating and credit score migrations; and (3) individual allowances on collateral-dependent loans where borrowers are experiencing financial difficulty or when the Company determines that the foreclosure is probable. The Company excludes accrued interest from the measurement of the allowance as the Company has a non-accrual policy to reverse any accrued, uncollected interest income as loans are moved to non-accrual status.

Loans are pooled into segments based on the similar risk characteristics of the underlying borrowers, in addition to consideration of collateral type, industry and business purpose of the loans. Portfolio segments used to estimate the allowance are the same as portfolio segments used for general credit risk management purposes. Refer to Note 5 for more details on the Company’s portfolio segments.

The Company applies two calculation methodologies to estimate the collective quantified component of the allowance: discounted cash flows method and weighted average remaining life method. Allowance estimates on commercial acquisition, development and construction (“AD&C”) and residential construction segments are based on the weighted average remaining life method. Allowance estimates on all other portfolio segments are based on the discounted cash flows method. Segments utilizing the discounted cash flows method are further sub-segmented into risk level pools, determined either by risk rating for commercial loans or Beacon Scores ranges for residential and consumer loans. To better manage risk and reasonably determine the sufficiency of reserves, this segregation allows the Company to monitor the allowance component applicable to higher risk loans separate from the remainder of the portfolio. Collective calculation methodologies utilize the Company’s historical default and loss experience adjusted for future economic forecasts. The reasonable and supportable forecast period represents a two-year economic outlook for the applicable economic variables. Following the end of the reasonable and supportable forecast period expected losses revert back to the historical mean over the next two years on a straight-line basis. Economic variables that have the most significant impact on the allowance include: unemployment rate, house price index and business bankruptcies. Contractual loan level cash flows within the discounted cash flows methodology are adjusted for the Company’s historical prepayment and curtailment rate experience.

The individual reserve assessment is applied to collateral dependent loans where borrowers are experiencing financial difficulty or when the Company determines that a foreclosure is probable. The determination of the fair value of the collateral depends on whether a repayment of the loan is expected to be from the sale or the operation of the collateral. When a repayment is expected from the operation of the collateral, the Company uses the present value of expected cash flows from the operation of the collateral as the fair value. When the repayment of the loan is expected from the sale of the collateral the fair value of the collateral is based on an observable market price or the collateral’s appraised value, less estimated costs to sell. Third party appraisals used in the individual reserve assessment are conducted at least annually with underlying assumptions that are reviewed by management. Third party appraisals may be obtained on a more frequent basis if deemed necessary. Internal evaluations of collateral value are conducted quarterly to ensure any further deterioration of the collateral value is recognized on a timely basis. During the individual reserve assessment, management also considers the potential future changes in the value of the collateral over the remainder of the loan’s remaining life. The Company may receive updated appraisals which contradict the preliminary determination of fair value used to establish an individual allowance on a loan. In these instances the individual allowance is adjusted to reflect the Company’s evaluation of the updated appraised fair value. In the event a loss was previously confirmed and the loan was charged down to the estimated fair value based on a previous appraisal, the balance of partially charged-off loans are not subsequently increased, but could be further decreased depending on the direction of the change in fair value. Payments on fully or partially charged-off loans are accounted for under the cost-recovery method. Under this method, all payments received are applied on a cash basis to reduce the entire outstanding principal balance, then to recognize a recovery of all previously charged-off amounts before any interest income may be recognized. Based on the individual reserve assessment, if the Company determines that the fair value of the collateral is less than the amortized cost basis of the loan, an individual allowance will be established measured as the difference between the fair value of the collateral

(less costs to sell) and the amortized cost basis of the loan. Once a loss has been confirmed, the loan is charged-down to its estimated fair value.

Large groups of smaller non-accrual homogeneous loans are not individually evaluated for allowance and include residential permanent and construction mortgages and consumer installment loans. These portfolios are reserved for on a collective basis using historical loss rates of similar loans over the weighted average life of each pool.

The Company reviews its unfunded commitments to determine if they are unconditionally cancellable by the Company. If the unfunded commitment is determined to not be unconditionally cancellable by the Company, a reserve for unfunded commitments is established. The reserve for unfunded commitments considers both the likelihood that the funding will occur and an estimate of expected credit losses over the life of the commitment.

Management believes it uses relevant information available to make determinations about the allowance and that it has established the existing allowance in accordance with GAAP. However, the determination of the allowance requires significant judgment, and estimates of expected lifetime losses in the loan portfolio can vary significantly from the amounts actually observed. While management uses available information to recognize expected losses, future additions to the allowance may be necessary based on

changes in the loans comprising the portfolio, changes in the current and forecasted economic conditions, changes to the interest rate environment which may directly impact prepayment and curtailment rate assumptions, and changes in the financial condition of borrowers.

Acquired Loans

Loans acquired in connection with acquisitions are recorded at their acquisition-date fair value. The allowance for credit losses related to the acquired loan portfolio is not carried over. Acquired loans are classified into two categories based on the credit risk characteristics of the underlying borrowers as either purchased credit deteriorated (“PCD”) loans, or loans with no evidence of credit deterioration (“non-PCD”).

PCD loans are defined as a loan or pool of loans that have experienced more-than-insignificant credit deterioration since the origination date. The Company uses a combination of individual and pooled review approaches to determine if acquired loans are PCD. At acquisition, the Company considers a number of factors to determine if an acquired loan or pool of loans has experienced more-than-insignificant credit deterioration. These factors include:

•loans classified as non-accrual,

•loans with risk rating of special mention or worse (using the Company's risk rating scale),

•loans with multiple risk rating downgrades since origination,

•loans with evidence of being 60 days or more past due,

•loans previously modified in a troubled debt restructuring,

•loans that received an interest only or payment deferral modification, and

•loans in industries that show evidence of additional risk due to economic conditions.

The initial allowance related to PCD loans that share similar risk characteristics is established using a pooled approach. The Company uses either a discounted cash flow or weighted average remaining life method to determine the required level of the allowance. PCD loans that were classified as non-accrual as of the acquisition date and are collateral dependent are assessed for allowance on an individual basis.

For PCD loans, an initial allowance is established on the acquisition date and added to the fair value of the loan to arrive at acquisition date amortized cost. Accordingly, no provision for credit losses is recognized on PCD loans at the acquisition date. Subsequent to the acquisition date, the initial allowance on PCD loans will increase or decrease based on future evaluations, with changes recognized in the provision for credit losses.

Non-PCD loans are pooled into segments together with originated loans that share similar risk characteristics and have an allowance established on the acquisition date, which is recognized in the current period provision for credit losses.

Determining the fair value of the acquired loans involves estimating the principal and interest payment cash flows expected to be collected on the loans and discounting those cash flows at a market rate of interest. Management considers a number of factors in evaluating the acquisition-date fair value including the remaining life, interest rate profile, market interest rate environment, payment schedules, risk ratings, probability of default and loss given default, and estimated prepayment rates. For PCD loans, the non-credit discount or premium is allocated to individual loans as determined by the difference between the loan’s unpaid principal balance and amortized cost basis. The non-credit premium or discount is recognized into interest income on a level yield basis over the remaining expected life of the loan. For non-PCD loans, the fair value discount or premium is allocated to individual loans and recognized into interest income on a level yield basis over the remaining expected life of the loan.

Premises and Equipment

Premises and equipment are stated at cost, less accumulated depreciation and amortization, computed using the straight-line method. Premises and equipment are depreciated over the useful lives of the assets, which generally range from 3 to 10 years for furniture, fixtures and equipment, 3 to 5 years for computer software and hardware, and 10 to 40 years for buildings and building improvements. Leasehold improvements are amortized over the lesser of the lease term or the estimated useful lives of the improvements. The costs of major renewals and betterments are capitalized, while the costs of ordinary maintenance and repairs are included in non-interest expense.

Leases

The Company determines if an arrangement is a lease at inception. All of the Company’s leases are currently classified as operating leases and are included in other assets and other liabilities on the Company’s Consolidated Statements of Condition. Periodic operating lease costs are recorded in occupancy expenses of premises on the Company's Consolidated Statements of Income.

Right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term, and lease liabilities represent the Company’s obligation to make lease payments arising from the lease arrangements. Operating lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of the expected future lease payments over the remaining lease term. In determining the present value of future lease payments, the Company uses its incremental borrowing rate based on the information available at the lease commencement date. The operating ROU assets are adjusted for any lease payments made at or before the lease commencement date, initial direct costs, any lease incentives received and, for acquired leases, any favorable or unfavorable fair value adjustments. The present value of the lease liability may include the impact of options to extend or terminate the lease when it is reasonably certain that the Company will exercise such options provided in the lease terms. Lease expense is recognized on a straight-line basis over the expected lease term. Lease agreements that include lease and non-lease components, such as common area maintenance charges, are accounted for separately.

Goodwill and Other Intangible Assets

Goodwill represents the excess purchase price paid over the fair value of the net assets acquired in a business combination. Goodwill is not amortized but is tested for impairment annually or more frequently if events or changes in circumstances indicate that the asset might be impaired. Impairment testing requires that the fair value of each of the Company’s reporting units be compared to the carrying amount of the reporting unit’s net assets, including goodwill. The Company’s reporting units were identified based upon an analysis of each of its individual operating segments. If the fair values of the reporting units exceed their book values, no write-down of recorded goodwill is required. If the fair value of a reporting unit is less than book value, an expense may be required to write-down the related goodwill to the proper carrying value. Any impairment would be realized through a reduction of goodwill or the intangible and an offsetting charge to non-interest expense. Annually, the Company performs an impairment test of goodwill as of October 1 of each year. During the year, any triggering event that occurs may affect goodwill and could require an impairment assessment. Determining the fair value of a reporting unit requires the Company to use a degree of subjectivity. The Company's annual impairment test of goodwill and other intangible assets did not identify any impairment. Additionally, the Company determined that there were no triggering events and as a result no evidence of impairment between the annual impairment test and December 31, 2021.

Accounting guidance provides the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. The Company assesses qualitative factors on a quarterly basis. Based on the assessment of these qualitative factors, if it is determined that it is more likely than not that the fair value of a reporting unit is not less than the carrying value, then performing the impairment process is not necessary. However, if it is determined that it is more likely than not that the carrying value exceeds the fair value a quantified analysis is required to determine whether an impairment exists.

Other intangible assets represent purchased assets that lack physical substance but can be distinguished from goodwill because of contractual or other legal rights or because the asset is capable of being sold or exchanged either on its own or in combination with a related contract, asset, or liability. Other intangible assets have finite lives and are reviewed for impairment annually. These assets are amortized over their estimated useful lives either on a straight-line or sum-of-the-years basis over varying periods that initially did not exceed 15 years.

Other Real Estate Owned

OREO is comprised of properties acquired in partial or total satisfaction of problem loans. The properties are recorded at fair value less estimated costs of disposal, on the date acquired or on the date that the Company acquires effective control over the property. Gains or losses arising at the time of acquisition of such properties are charged against the allowance for credit losses. During the holding period OREO continues to be measured at lower of cost or fair value less estimated costs of disposal, and any subsequent declines in value are expensed as incurred. Gains and losses realized from the sale of OREO, as well as valuation adjustments and expenses of operation are included in non-interest expense.

Derivative Financial Instruments

Derivative Loan Commitments

Mortgage loan commitments are derivative loan commitments if the loan that will result from exercise of the commitment will be held for sale upon funding. Derivative loan commitments are recognized at fair value in the Consolidated Statements of Condition in other assets or other liabilities with changes in their fair values recorded as a component of mortgage banking activities in the Consolidated Statements of Income.

Mortgage loan commitments are issued to borrowers. Subsequent to commitment date, changes in the fair value of the loan commitment are recognized based on changes in the fair value of the underlying mortgage loan due to interest rate changes, changes in the probability the derivative loan commitment will be exercised, and the passage of time. In estimating fair value, a probability is assigned to a loan commitment based on an expectation that it will be exercised and the loan will be funded.

Forward Loan Sale Commitments

Loan sales agreements are evaluated to determine whether they meet the definition of a derivative as facts and circumstances may differ significantly. If agreements qualify, to protect against the price risk inherent in derivative loan commitments, the Company utilizes both “mandatory delivery” and “best efforts” forward loan sale commitments to mitigate the risk of potential decreases in the values of loans that would result from the exercise of the derivative loan commitments. Mandatory delivery contracts are accounted for as derivative instruments. Generally, best efforts contracts also meet the definition of derivative instruments after the loan to the borrower has closed. Accordingly, forward loan sale commitments that economically hedge the closed loan inventory are recognized at fair value in the Consolidated Statements of Condition in other assets or other liabilities with changes in their fair values recorded as a component of mortgage banking activities in the Consolidated Statements of Income. The Company estimates the fair value of its forward loan sales commitments using a methodology similar to that used for derivative loan commitments.

Interest Rate Swap Agreements

The Company enters into interest rate swaps (“swaps”) with commercial loan customers to provide a facility to mitigate the fluctuations in the variable rate on the respective loans. These swaps are matched in exact offsetting terms to swaps that the Company enters into with an outside third party. The swaps are reported at fair value in other assets or other liabilities in the Consolidated Statements of Condition. The Company's swaps qualify as derivatives, but are not designated as hedging instruments, thus any net gain or loss resulting from changes in the fair value is recognized in other non-interest income in the Consolidated Statements of Income. Further discussion of the Company's financial derivatives is set forth in Note 19.

Off-Balance Sheet Credit Risk

The Company issues financial or standby letters of credit that represent conditional commitments to fund transactions by the Company, typically to guarantee performance of a customer to a third-party related to borrowing arrangements. The credit risk associated with issuing letters of credit is essentially the same as occurs when extending loan facilities to borrowers. The Company monitors the exposure to the letters of credit as part of its credit review process. Extensions of letters of credit, if any, would become part of the loan balance outstanding and would be evaluated in accordance with the Company’s credit policies. Potential exposure to loss for unfunded letters of credit if deemed necessary would be recorded in other liabilities in the Consolidated Statements of Condition.

In the ordinary course of business the Company originates and sells whole loans to a variety of investors. Mortgage loans sold are subject to representations and warranties made to the third-party purchasers regarding certain attributes. Subsequent to the sale, if a material underwriting deficiency or documentation defect is determined, the Company may be obligated to repurchase the mortgage loan or reimburse the investor for losses incurred if the deficiency or defect cannot be rectified within a specific period subsequent to discovery. The Company monitors the activity regarding the requirement to repurchase loans and the associated losses incurred. This information is applied to determine an estimated recourse reserve that is recorded in other liabilities in the Consolidated Statements of Condition.

Valuation of Long-Lived Assets

The Company reviews long-lived assets, including leases, and certain identifiable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability is measured by comparing the carrying amount of the asset to future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets

exceeds the estimated fair value of the assets. Assets to be disposed of are reported at the lower of the cost or the fair value, less costs to sell.

Transfers of Financial Assets

Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right or from providing more than a trivial benefit to the transferor) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through any agreement to repurchase or redeem them before their maturity or likely cause a holder to return those assets whether through unilateral ability or a price so favorable to the transferee that it is probable that the transferee will require the transferor to repurchase them. A participating interest must be in an entire financial asset and cannot represent an interest in a group of financial assets. Except for compensation paid for services performed, all cash flows from the asset are allocated to the participating interest holders in proportion to their share of ownership. Financial assets obtained or liabilities incurred in a sale are recognized and initially measured at fair value.

Advertising Costs

Advertising costs are expensed as incurred and included as marketing expense in non-interest expenses in the Consolidated Statements of Income.

Net Income per Common Share

The Company calculates earnings per common share under the two class method, which provides that unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and shall be included in the computation of earnings per share pursuant to the dual class method. The Company has determined that its outstanding non-vested restricted stock awards are participating securities.

Under the two class method, basic earnings per common share is computed by dividing net earnings allocated to common shareholders by the weighted average number of common shares outstanding during the applicable period, which excludes outstanding participating securities. Diluted earnings per common share is computed using the weighted average number of common shares determined for the basic earnings per common share computation plus the dilutive effect of incremental stock options and restricted stock.

Income Taxes

Income tax expense is based on the results of operations, adjusted for permanent differences between items of income or expense reported in the financial statements and those reported for tax purposes. Deferred income tax assets and liabilities are determined using the liability method. Under the liability method, deferred income taxes are determined based on the differences between the financial statement carrying amounts and the income tax bases of assets and liabilities and are measured at the enacted tax rates that will be in effect when these differences reverse. The effects of the enactment of the new tax law are accounted for under the existing authoritative guidance.

The Company’s policy is to recognize interest and penalties on income taxes in other non-interest expense in the Consolidated Statements of Income.

Adopted Accounting Pronouncements

In December 2019, FASB released ASU 2019-12 - Income Taxes (Topic 740), which simplifies the accounting for income taxes by removing multiple exceptions to the general principals in Topic 740. The standard was effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2020. The Company adopted this standard during the current year and it did not have a material impact on the Company’s Consolidated Financial Statements.

Pending Accounting Pronouncements

In March 2020, FASB released Accounting Standards Update (“ASU”) 2020-04 - Reference Rate Reform (Topic 848), which provides optional guidance to ease the accounting burden in accounting for, or recognizing the effects from, reference rate reform on financial reporting. The new standard is a result of LIBOR likely being discontinued as an available benchmark rate. The standard is elective and provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, or other transactions that reference LIBOR, or another reference rate expected to be discontinued. The amendments in the update are effective for all entities between March 12, 2020 and December 31, 2022, and can be adopted at any time during this period. The Company has not yet fully

adopted this standard. A cross-functional working group has been established to guide the Company’s transition from LIBOR to alternative reference rates. The Company has identified its products that are either directly or indirectly influenced by LIBOR and has implemented enhanced fallback language to facilitate the transition to alternative reference rates. The Company is evaluating existing platforms and systems and preparing to offer new rates. The Company stopped originating any new loans referencing LIBOR during 2021. Currently, the Company does not expect that the adoption of this standard will have a material impact on its Consolidated Financial Statements.

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ACQUISITION OF REVERE BANK

12 Months Ended

Dec. 31, 2021

Business Combination and Asset Acquisition [Abstract]

ACQUISITION OF REVERE BANK

ACQUISITION OF REVERE BANK

On April 1, 2020 (“Acquisition Date”), the Company completed the acquisition of Revere Bank (“Revere”), a Maryland chartered commercial bank, in accordance with the definitive agreement that was entered into on September 23, 2019 by and among the Company, the Bank and Revere. In connection with the completion of the merger, former Revere shareholders received 1.05 shares of Sandy Spring common stock for each share of Revere common stock they held. Based on the $22.64 per share closing price of Sandy Spring common stock on March 31, 2020, and including the fair value of options converted or cashed-out, the total transaction value was approximately $293.0 million. Upon completion of the acquisition, Sandy Spring shareholders owned approximately 74 percent of the combined company, and former Revere shareholders owned approximately 26 percent.

As of March 31, 2020, Revere, headquartered in Rockville, MD, had more than $2.8 billion in assets and operated 11 full-service community banking offices throughout the Washington D.C. metropolitan region.

The acquisition of Revere was accounted for as a business combination using the acquisition method of accounting and, accordingly, assets acquired, liabilities assumed, and consideration paid are recorded at estimated fair values on the Acquisition Date. The provisional amount of goodwill recognized as of the Acquisition Date was approximately $0.8 million. After immaterial adjustments recorded during the fourth quarter of 2020, the provisional amount of goodwill recognized as of December 31, 2020 was $0.5 million. Management's final review of assets acquired and liabilities assumed did not result in additional adjustments during the first quarter of 2021, and goodwill was determined to be final as of March 31, 2021. The goodwill is not deductible for tax purposes.

The consideration paid for Revere’s common equity and outstanding stock options and the final fair values of acquired identifiable assets and assumed identifiable liabilities as of March 31, 2021 were as follows:

(Dollars in thousands, except per share data)	March 31, 2021
Purchase price:
Fair value of common shares issued (12,768,949 shares) based on Sandy Spring's share price of $22.64	$	289,089
Fair value of Revere stock options converted to Sandy Spring stock options	3,611
Cash paid for cashed-out Revere stock options	291
Cash for fractional shares	11
Total purchase price	$	293,002
Identifiable assets:
Cash and cash equivalents	$	80,744
Investments available-for-sale	180,752
Loans	2,502,244
Premises and equipment	3,443
Accrued interest receivable	7,651
Core deposit intangible asset	18,360
Other assets	53,162
Total identifiable assets	$	2,846,356
Identifiable liabilities:
Deposits	$	2,322,422
Borrowings	205,514
Other liabilities	25,933
Total identifiable liabilities	$	2,553,869
Fair value of net assets acquired including identifiable intangible assets	292,487
Goodwill	$	515

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CASH AND DUE FROM BANKS	12 Months Ended
	Dec. 31, 2021
Cash and Cash Equivalents [Abstract]
CASH AND DUE FROM BANKS	CASH AND DUE FROM BANKSThe Federal Reserve Act requires that banks maintain cash reserve balances with the Federal Reserve Bank based principally on the type and amount of their deposits. At its option, the Company maintains additional balances to compensate for clearing and safekeeping services. The average balance maintained in 2021 was $491.9 million and in 2020 was $236.3 million.

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INVESTMENTS

12 Months Ended

Dec. 31, 2021

Investments, Debt and Equity Securities [Abstract]

INVESTMENTS

INVESTMENTS

Investments available-for-sale

The amortized cost and estimated fair values of investments available-for-sale at December 31 are presented in the following table:

	2021								2020
(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
U.S. treasuries and government agencies	$	68,487	$	202	$	(150)	$	68,539	$	42,750	$	549	$	(2)	$	43,297
State and municipal	323,286		6,561		(3,445)		326,402		377,108		13,470		(211)		390,367
Mortgage-backed and asset-backed	1,074,577		8,203		(11,825)		1,070,955		881,201		24,078		(847)		904,432
Corporate debt	—		—		—		—		9,100		825		—		9,925
Total investments available-for-sale	$	1,466,350	$	14,966	$	(15,420)	$	1,465,896	$	1,310,159	$	38,922	$	(1,060)	$	1,348,021

Any unrealized losses in the U.S. treasuries and government agencies, state and municipal, mortgage-backed and asset-backed investment securities at December 31, 2021 are due to changes in interest rates and not credit-related events. As such, no allowance for credit losses is required at December 31, 2021. Unrealized losses on investment securities are expected to recover over time as these securities approach maturity. The Company does not intend to sell, nor is it more likely than not that it will be required to sell, these

securities and has sufficient liquidity to hold these securities for an adequate period of time, which may be maturity, to allow for any anticipated recovery in fair value.

The mortgage-backed and asset-backed portfolio at December 31, 2021 is composed entirely of either the most senior tranches of GNMA, FNMA or FHLMC collateralized mortgage obligations ($364.4 million), GNMA, FNMA or FHLMC mortgage-backed securities ($652.0 million) and SBA asset-backed securities ($54.6 million).

Gross unrealized losses and fair values by length of time that individual available-for-sale securities have been in an unrealized loss position at December 31 are presented in the following tables:

	December 31, 2021
	Number of Securities	Less Than 12 Months				12 Months or More				Total
(Dollars in thousands)		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. treasuries and government agencies	5	$	49,695	$	150	$	—	$	—	$	49,695	$	150
State and municipal	32	63,206		2,288		21,740		1,157		84,946		3,445
Mortgage-backed and asset-backed	104	665,813		10,145		37,857		1,680		703,670		11,825
Total	141	$	778,714	$	12,583	$	59,597	$	2,837	$	838,311	$	15,420

	December 31, 2020
	Number of Securities	Less Than 12 Months				12 Months or More				Total
(Dollars in thousands)		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. treasuries and government agencies	2	$	25,369	$	2	$	—	$	—	$	25,369	$	2
State and municipal	8	22,753		211		—		—		22,753		211
Mortgage-backed and asset-backed	24	44,746		154		76,879		693		121,625		847
Total	34	$	92,868	$	367	$	76,879	$	693	$	169,747	$	1,060

The Company has allocated mortgage-backed and asset-backed securities into the four maturity groupings reflected in the following table using the expected average life of the individual securities based on statistics provided by independent third-party industry sources. Expected maturities will differ from contractual maturities as borrowers may have the right to prepay obligations with or without prepayment penalties.

The estimated fair values and amortized costs of debt securities available-for-sale by contractual maturity at December 31 are provided in the following table:

	December 31, 2021				December 31, 2020
(In thousands)	Fair Value		Amortized Cost		Fair Value		Amortized Cost
U.S. treasuries and government agencies:
One year or less	$	12,029	$	11,995	$	33,963	$	33,833
One to five years	56,510		56,492		9,334		8,917
Five to ten years	—		—		—		—
After ten years	—		—		—		—
State and municipal:
One year or less	12,821		12,709		16,581		16,458
One to five years	27,408		26,637		44,910		43,857
Five to ten years	42,960		42,661		59,059		56,130
After ten years	243,213		241,279		269,817		260,663
Mortgage-backed and asset-backed:
One year or less	9,272		9,239		1		1
One to five years	14,752		14,575		21,637		21,229
Five to ten years	388,918		390,569		74,142		72,481
After ten years	658,013		660,194		808,652		787,490
Corporate debt:
One year or less	—		—		—		—
One to five years	—		—		2,318		2,100
Five to ten years	—		—		7,607		7,000
After ten years	—		—		—		—
Total available-for-sale debt securities	$	1,465,896	$	1,466,350	$	1,348,021	$	1,310,159

At December 31, 2021 and 2020, investments available-for-sale with a book value of $531.6 million and $465.7 million, respectively, were pledged as collateral for certain government deposits and for other purposes as required or permitted by law. The outstanding balance of no single issuer, except for U.S. government agency securities, exceeded ten percent of stockholders' equity at December 31, 2021 and 2020.

Equity securities

Other equity securities at the dates indicated are presented in the following table:

(In thousands)	2021		2020
Federal Reserve Bank stock	$	34,097	$	38,650
Federal Home Loan Bank of Atlanta stock	6,392		26,433
Other equity securities	677		677
Total equity securities	$	41,166	$	65,760

Investment securities gains

Gross realized gains and losses on all investments for the years ended December 31 are presented in the following table:

(In thousands)	2021		2020		2019
Gross realized gains from sales of investments available-for-sale	$	3,588	$	1,297	$	14
Gross realized losses from sales of investments available-for-sale	(3,478)		(1,068)		(2)
Net gains from calls of investments available-for-sale	102		238		65
Net investment securities gains	$	212	$	467	$	77

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LOANS

12 Months Ended

Dec. 31, 2021

Receivables [Abstract]

LOANS

LOANS

The lending business of the Company is based on understanding, measuring and controlling the credit risk inherent in the loan portfolio. The Company’s loan portfolio is subject to varying degrees of credit risk. Credit risk entails both general risks, which are inherent in the process of lending, and risk specific to individual borrowers. The Company’s credit risk is mitigated through portfolio diversification, which limits exposure to any single customer, industry or collateral type.

Outstanding loan balances at December 31, 2021 and 2020 are net of unearned income, including net deferred loan fees of $14.3 million and $24.5 million, respectively. Net deferred loan fees at December 31, 2021, included $4.6 million in net fees related to the loans originated under the Paycheck Protection Program (“PPP”) compared to $21.2 million at the end of the prior year.

The loan portfolio segment balances at December 31 are presented in the following table:

(In thousands)	2021		2020
Commercial real estate:
Commercial investor real estate	$	4,141,346	$	3,634,720
Commercial owner-occupied real estate	1,690,881		1,642,216
Commercial AD&C	1,088,094		1,050,973
Commercial business	1,481,834		2,267,548
Total commercial loans	8,402,155		8,595,457
Residential real estate:
Residential mortgage	937,570		1,105,179
Residential construction	197,652		182,619
Consumer	429,714		517,254
Total residential and consumer loans	1,564,936		1,805,052
Total loans	$	9,967,091	$	10,400,509

The fair value of the financial assets acquired in the Revere acquisition as of the Acquisition Date included loans receivable with a gross amortized cost basis of $2.5 billion. As of the Acquisition Date, the Company identified $974.8 million of loans that were classified as PCD. An initial allowance for credit losses of $18.6 million was recorded through a gross-up adjustment to fair values of PCD loans. A fair value premium related to other factors totaled $4.5 million and amortizes to interest income over the remaining life of each loan. Total fair value of PCD loans as of the Acquisition Date was $960.7 million. Refer to Note 1 for more details on factors considered in the PCD assessment.

At the Acquisition Date, non-PCD loans totaled $1.5 billion and had a net fair value premium of $2.1 million, which amortizes to interest income over the remaining life of each loan. See Note 1 for more information on the Company’s accounting policy for acquired loans and Note 2 for more information on the Revere acquisition.

Portfolio Segments

The Company currently manages its credit products and the respective exposure to credit losses (credit risk) by the following specific portfolio segments which are levels at which the Company develops and documents its systematic methodology to determine the allowance for credit losses attributable to each respective portfolio segment. These segments are:

•Commercial investor real estate loans - Commercial investor real estate loans consist of loans secured by nonowner-occupied properties where an established banking relationship exists and involves investment properties for warehouse, retail, and office space with a history of occupancy and cash flow. This commercial investor real estate category contains mortgage loans to the developers and owners of commercial real estate where the borrower intends to operate or sell the property at a profit and use the income stream or proceeds from the sale(s) to repay the loan.

•Commercial owner-occupied real estate loans - Commercial owner-occupied real estate loans consist of commercial mortgage loans secured by owner-occupied properties where an established banking relationship exists and involves a variety of property types to conduct the borrower’s operations. The decision to extend a loan is based upon the borrower’s financial health and the ability of the borrower and the business to repay. The primary source of repayment for this type of loan is the cash flow from the operations of the business.

•Commercial acquisition, development and construction loans - Commercial acquisition, development and construction loans are intended to finance the construction of commercial properties and include loans for the acquisition and development

of land. Construction loans represent a higher degree of risk than permanent real estate loans and may be affected by a variety of additional factors such as the borrower’s ability to control costs and adhere to time schedules and the risk that constructed units may not be absorbed by the market within the anticipated time frame or at the anticipated price. The loan commitment on these loans often includes an interest reserve that allows the lender to periodically advance loan funds to pay interest charges on the outstanding balance of the loan.

•Commercial business loans - Commercial loans are made to provide funds for equipment and general corporate needs. Repayment of a loan primarily comes from the funds obtained from the operation of the borrower’s business. Commercial loans also include lines of credit that are utilized to finance a borrower’s short-term credit needs and/or to finance a percentage of eligible receivables and inventory. Loans issued under the PPP are also included in this category, a substantial portion of which are expected to be forgiven by the Small Business Administration pursuant to the CARES Act.

•Residential mortgage loans - The residential mortgage loans category contains permanent mortgage loans principally to consumers secured by residential real estate. Residential real estate loans are evaluated for the adequacy of repayment sources at the time of approval, based upon measures including credit scores, debt-to-income ratios, and collateral values. Loans may be either conforming or non-conforming.

•Residential construction loans - The Company makes residential construction loans generally to provide interim financing on residential property during the construction period. Borrowers are typically individuals who will ultimately occupy the single-family dwelling. Loan funds are disbursed periodically as pre-specified stages of completion are attained based upon site inspections.

•Consumer loans - This category of loans includes primarily home equity loans and lines, installment loans, personal lines of credit, and other loans. The home equity category consists mainly of revolving lines of credit to consumers which are secured by residential real estate. These loans are typically secured with second mortgages on the homes. Other consumer loans include installment loans used by customers to purchase automobiles, boats and recreational vehicles.

Loans to Related Parties

Certain directors and executive officers have loan transactions with the Company. The following schedule summarizes changes in amounts of loans outstanding, both direct and indirect, to these persons during the periods indicated:

(In thousands)	2021		2020
Balance at January 1	$	96,005	$	51,367
Additions	7,040		46,846
Repayments	(24,818)		(2,208)
Balance at December 31	$	78,227	$	96,005

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CREDIT QUALITY ASSESSMENT

12 Months Ended

Dec. 31, 2021

Credit Loss [Abstract]

CREDIT QUALITY ASSESSMENT

CREDIT QUALITY ASSESSMENT

Allowance for Credit Losses

Summary information on the allowance for credit loss activity for the years ended December 31 is provided in the following table:

(In thousands)	2021		2020		2019
Balance at beginning of year	$	165,367	$	56,132	$	53,486
Initial allowance on PCD loans at adoption of ASC 326	—		2,762		—
Transition impact of adopting ASC 326	—		2,983		—
Initial allowance on Revere PCD loans	—		18,628		—
Provision/ (credit) for credit losses	(45,556)		85,669		4,684
Loan charge-offs	(12,313)		(1,819)		(2,668)
Loan recoveries	1,647		1,012		630
Net charge-offs	(10,666)		(807)		(2,038)
Balance at period end	$	109,145	$	165,367	$	56,132

The following table provides summary information regarding collateral dependent loans individually evaluated for credit loss at the dates indicated:

(In thousands)	2021		2020
Collateral dependent loans individually evaluated for credit loss with an allowance	$	9,510	$	20,717
Collateral dependent loans individually evaluated for credit loss without an allowance	24,024		77,001
Total individually evaluated collateral dependent loans	$	33,534	$	97,718
Allowance for credit losses related to loans evaluated individually	$	6,593	$	11,405
Allowance for credit losses related to loans evaluated collectively	102,552		153,962
Total allowance for credit losses	$	109,145	$	165,367

The following tables provide information on the activity in the allowance for credit losses by the respective loan portfolio segment for the years ended December 31:

	2021
	Commercial Real Estate												Residential Real Estate
(In thousands)	Commercial Investor R/E			Commercial Owner- Occupied R/E			Commercial AD&C			Commercial Business			Residential Mortgage			Residential Construction			Consumer			Total
Balance as of December 31, 2020	$	57,404		$	20,061		$	22,157		$	46,806		$	11,295		$	1,502		$	6,142		$	165,367
Provision/ (credit)	(6,598)			(8,238)			172			(20,132)			(6,321)			(459)			(3,980)			(45,556)
Charge-offs	(5,802)			(136)			(2,007)			(4,069)			—			—			(299)			(12,313)
Recoveries	285			—			—			565			410			5			382			1,647
Net (charge-offs)/ recoveries	(5,517)			(136)			(2,007)			(3,504)			410			5			83			(10,666)
Balance at end of period	$	45,289		$	11,687		$	20,322		$	23,170		$	5,384		$	1,048		$	2,245		$	109,145
Total loans	$	4,141,346		$	1,690,881		$	1,088,094		$	1,481,834		$	937,570		$	197,652		$	429,714		$	9,967,091
Allowance for credit losses to total loans ratio	1.09		%	0.69		%	1.87		%	1.56		%	0.57		%	0.53		%	0.52		%	1.10		%
Average loans	$	3,689,769		$	1,661,015		$	1,110,420		$	1,952,537		$	979,754		$	178,171		$	463,200		$	10,034,866
Net charge-offs/ (recoveries) to average loans	0.15		%	0.01		%	0.18		%	0.18		%	(0.04)		%	—		%	(0.02)		%	0.11		%
Balance of loans individually evaluated for credit loss	$	12,489		$	9,306		$	650		$	9,033		$	1,704		$	—		$	352		$	33,534
Allowance related to loans evaluated individually	$	213		$	79		$	504		$	5,797		$	—		$	—		$	—		$	6,593
Individual allowance to loans evaluated individually ratio	1.71		%	0.85		%	77.54		%	64.18		%	—		%	—		%	—		%	19.66		%
Balance of loans collectively evaluated for credit loss	$	4,128,857		$	1,681,575		$	1,087,444		$	1,472,801		$	935,866		$	197,652		$	429,362		$	9,933,557
Allowance related to loans evaluated collectively	$	45,076		$	11,608		$	19,818		$	17,373		$	5,384		$	1,048		$	2,245		$	102,552
Collective allowance to loans evaluated collectively ratio	1.09		%	0.69		%	1.82		%	1.18		%	0.58		%	0.53		%	0.52		%	1.03		%

	2020
	Commercial Real Estate												Residential Real Estate
(In thousands)	Commercial Investor R/E			Commercial Owner- Occupied R/E			Commercial AD&C			Commercial Business			Residential Mortgage			Residential Construction			Consumer			Total
Balance as of December 31, 2019	$	18,407		$	6,884		$	7,590		$	11,395		$	8,803		$	967		$	2,086		$	56,132
Initial allowance on PCD loans at adoption of ASC 326	1,114			—			—			1,549			—			—			99			2,762
Transition impact of adopting ASC 326	(3,125)			387			2,576			2,988			(388)			(275)			820			2,983
Initial allowance on Revere PCD loans	7,973			2,782			1,248			6,289			243			6			87			18,628
Provision	33,431			10,008			10,743			24,374			3,016			798			3,299			85,669
Charge-offs	(411)			—			—			(491)			(484)			—			(433)			(1,819)
Recoveries	15			—			—			702			105			6			184			1,012
Net (charge-offs)/ recoveries	(396)			—			—			211			(379)			6			(249)			(807)
Balance at end of period	$	57,404		$	20,061		$	22,157		$	46,806		$	11,295		$	1,502		$	6,142		$	165,367
Total loans	$	3,634,720		$	1,642,216		$	1,050,973		$	2,267,548		$	1,105,179		$	182,619		$	517,254		$	10,400,509
Allowance for credit losses to total loans ratio	1.58		%	1.22		%	2.11		%	2.06		%	1.02		%	0.82		%	1.19		%	1.59		%
Average loans	$	3,210,527		$	1,560,223		$	906,414		$	1,781,197		$	1,168,668		$	165,567		$	524,897		$	9,317,493
Net charge-offs/ (recoveries) to average loans	0.01		%	—		%	—		%	(0.01)		%	0.03		%	—		%	0.05		%	0.01		%
Balance of loans individually evaluated for credit loss	$	45,227		$	11,561		$	15,044		$	23,648		$	1,874		$	—		$	364		$	97,718
Allowance related to loans evaluated individually	$	1,273		$	—		$	603		$	9,529		$	—		$	—		$	—		$	11,405
Individual allowance to loans evaluated individually ratio	2.81		%	—		%	4.01		%	40.30		%	—		%	—		%	—		%	11.67		%
Balance of loans collectively evaluated for credit loss	$	3,589,493		$	1,630,655		$	1,035,929		$	2,243,900		$	1,103,305		$	182,619		$	516,890		$	10,302,791
Allowance related to loans evaluated collectively	$	56,131		$	20,061		$	21,554		$	37,277		$	11,295		$	1,502		$	6,142		$	153,962
Collective allowance to loans evaluated collectively ratio	1.56		%	1.23		%	2.08		%	1.66		%	1.02		%	0.82		%	1.19		%	1.49		%

The following table presents collateral dependent loans individually evaluated for credit losses with the associated allowances for credit losses by the applicable portfolio segment:

	2021
	Commercial Real Estate								Residential Real Estate						Total
(In thousands)	Commercial Investor R/E		Commercial Owner- Occupied R/E		Commercial AD&C		Commercial Business		Residential Mortgage		Residential Construction		Consumer
Loans individually evaluated for credit losses with an allowance:
Non-accruing	$	808	$	79	$	650	$	4,849	$	—	$	—	$	—	$	6,386
Restructured accruing	—		—		—		613		—		—		—		613
Restructured non-accruing	336		—		—		2,175		—		—		—		2,511
Balance	$	1,144	$	79	$	650	$	7,637	$	—	$	—	$	—	$	9,510
Allowance	$	213	$	79	$	504	$	5,797	$	—	$	—	$	—	$	6,593
Loans individually evaluated for credit losses without an allowance:
Non-accruing	$	3,498	$	4,775	$	—	$	434	$	—	$	—	$	—	$	8,707
Restructured accruing	—		—		—		—		1,554		—		—		1,554
Restructured non-accruing	7,847		4,452		—		962		150		—		352		13,763
Balance	$	11,345	$	9,227	$	—	$	1,396	$	1,704	$	—	$	352	$	24,024
Total individually evaluated loans:
Non-accruing	$	4,306	$	4,854	$	650	$	5,283	$	—	$	—	$	—	$	15,093
Restructured accruing	—		—		—		613		1,554		—		—		2,167
Restructured non-accruing	8,183		4,452		—		3,137		150		—		352		16,274
Balance	$	12,489	$	9,306	$	650	$	9,033	$	1,704	$	—	$	352	$	33,534
Unpaid contractual principal balance	$	12,857	$	11,132	$	695	$	10,573	$	2,778	$	—	$	364	$	38,399

	2020
	Commercial Real Estate								Residential Real Estate						Total
(In thousands)	Commercial Investor R/E		Commercial Owner- Occupied R/E		Commercial AD&C		Commercial Business		Residential Mortgage		Residential Construction		Consumer
Loans individually evaluated for credit losses with an allowance:
Non-accruing	$	4,913	$	—	$	1,328	$	11,178	$	—	$	—	$	—	$	17,419
Restructured accruing	—		—		—		589		—		—		—		589
Restructured non-accruing	699		—		—		2,010		—		—		—		2,709
Balance	$	5,612	$	—	$	1,328	$	13,777	$	—	$	—	$	—	$	20,717
Allowance	$	1,273	$	—	$	603	$	9,529	$	—	$	—	$	—	$	11,405
Loans individually evaluated for credit losses without an allowance:
Non-accruing	$	39,615	$	9,315	$	13,716	$	9,118	$	—	$	—	$	—	$	71,764
Restructured accruing	—		—		—		126		1,602		—		—		1,728
Restructured non-accruing	—		2,246		—		627		272		—		364		3,509
Balance	$	39,615	$	11,561	$	13,716	$	9,871	$	1,874	$	—	$	364	$	77,001
Total individually evaluated loans:
Non-accruing	$	44,528	$	9,315	$	15,044	$	20,296	$	—	$	—	$	—	$	89,183
Restructured accruing	—		—		—		715		1,602		—		—		2,317
Restructured non-accruing	699		2,246		—		2,637		272		—		364		6,218
Balance	$	45,227	$	11,561	$	15,044	$	23,648	$	1,874	$	—	$	364	$	97,718
Unpaid contractual principal balance	$	49,920	$	15,309	$	16,040	$	30,958	$	3,225	$	—	$	364	$	115,816

The following table presents average principal balance of total non-accrual loans and contractual interest due on non-accrual loans for the periods indicated below:

	2021
	Commercial Real Estate								Residential Real Estate						Total
(In thousands)	Commercial Investor R/E		Commercial Owner- Occupied R/E		Commercial AD&C		Commercial Business		Residential Mortgage		Residential Construction		Consumer
Average non-accrual loans for the period	$	31,590	$	9,444	$	9,236	$	12,678	$	9,439	$	36	$	7,369	$	79,792
Contractual interest income due on non-accrual loans during the period	$	2,169	$	555	$	597	$	1,096	$	271	$	2	$	402	$	5,092

	2020
	Commercial Real Estate								Residential Real Estate						Total
(In thousands)	Commercial Investor R/E		Commercial Owner- Occupied R/E		Commercial AD&C		Commercial Business		Residential Mortgage		Residential Construction		Consumer
Average non-accrual loans for the period	$	26,849	$	6,605	$	4,267	$	16,532	$	11,634	$	—	$	6,675	$	72,562
Contractual interest income due on non-accrual loans during the period	$	6,547	$	2,741	$	4,505	$	2,858	$	918	$	—	$	732	$	18,301

There was no interest income recognized on non-accrual loans during the year ended December 31, 2021. See Note 1 for additional information on the Company's policies for non-accrual loans. Loans designated as non-accrual have all previously accrued but unpaid interest reversed from interest income. During the year ended December 31, 2021, new loans placed on non-accrual status totaled $8.1 million and the related amount of reversed uncollected accrued interest was $0.2 million.

Credit Quality

The following tables provide information on the credit quality of the loan portfolio by segment at December 31 for the years indicated:

	2021
	Commercial Real Estate								Residential Real Estate
(In thousands)	Commercial Investor R/E		Commercial Owner- Occupied R/E		Commercial AD&C		Commercial Business		Residential Mortgage		Residential Construction		Consumer		Total
Analysis of non-accrual loan activity:
Balance at beginning of period	$	45,227	$	11,561	$	15,044	$	22,933	$	10,212	$	—	$	7,384	$	112,361
Loans placed on non-accrual	699		3,676		49		1,339		695		62		1,626		8,146
Non-accrual balances transferred to OREO	—		(257)		—		—		—		—		—		(257)
Non-accrual balances charged-off	(5,803)		(136)		(2,007)		(3,547)		—		—		(100)		(11,593)
Net payments or draws	(26,813)		(5,538)		(12,436)		(12,305)		(2,406)		(7)		(1,725)		(61,230)
Non-accrual loans brought current	(821)		—		—		—		(60)		—		(460)		(1,341)
Balance at end of period	$	12,489	$	9,306	$	650	$	8,420	$	8,441	$	55	$	6,725	$	46,086

	2020
	Commercial Real Estate								Residential Real Estate
(In thousands)	Commercial Investor R/E		Commercial Owner- Occupied R/E		Commercial AD&C		Commercial Business		Residential Mortgage		Residential Construction		Consumer		Total
Analysis of non-accrual loan activity:
Balance at beginning of period	$	8,437	$	4,148	$	829	$	8,450	$	12,661	$	—	$	4,107	$	38,632
PCD loans designated as non-accrual (1)	9,544		—		—		2,539		8		—		993		13,084
Loans placed on non-accrual	37,882		8,572		15,844		17,442		1,485		—		4,061		85,286
Non-accrual balances transferred to OREO	—		—		—		—		(70)		—		—		(70)
Non-accrual balances charged-off	(411)		—		—		(446)		(416)		—		(121)		(1,394)
Net payments or draws	(10,225)		(1,059)		(1,629)		(4,169)		(2,598)		—		(1,521)		(21,201)
Non-accrual loans brought current	—		(100)		—		(883)		(858)		—		(135)		(1,976)
Balance at end of period	$	45,227	$	11,561	$	15,044	$	22,933	$	10,212	$	—	$	7,384	$	112,361

(1)Upon the adoption of the CECL standard, the Company transitioned from closed pool level accounting for PCI loans during the first quarter of 2020. Non-accrual loans are determined based on the individual loan level and aggregated for reporting.

	2021
	Commercial Real Estate								Residential Real Estate
(In thousands)	Commercial Investor R/E		Commercial Owner- Occupied R/E		Commercial AD&C		Commercial Business		Residential Mortgage		Residential Construction		Consumer		Total
Performing loans:
Current	$	4,127,009	$	1,680,635	$	1,085,642	$	1,471,669	$	919,199	$	197,597	$	419,558	$	9,901,309
30-59 days	1,656		86		1,802		753		5,157		—		3,021		12,475
60-89 days	192		854		—		379		2,662		—		410		4,497
Total performing loans	4,128,857		1,681,575		1,087,444		1,472,801		927,018		197,597		422,989		9,918,281
Non-performing loans:
Non-accrual loans	12,489		9,306		650		8,420		8,441		55		6,725		46,086
Loans greater than 90 days past due	—		—		—		—		557		—		—		557
Restructured loans	—		—		—		613		1,554		—		—		2,167
Total non-performing loans	12,489		9,306		650		9,033		10,552		55		6,725		48,810
Total loans	$	4,141,346	$	1,690,881	$	1,088,094	$	1,481,834	$	937,570	$	197,652	$	429,714	$	9,967,091

	2020
	Commercial Real Estate								Residential Real Estate
(In thousands)	Commercial Investor R/E		Commercial Owner- Occupied R/E		Commercial AD&C		Commercial Business		Residential Mortgage		Residential Construction		Consumer		Total
Performing loans:
Current	$	3,571,184	$	1,624,265	$	1,033,057	$	2,238,617	$	1,073,963	$	182,557	$	502,548	$	10,226,191
30-59 days	14,046		6,390		29		4,859		16,213		—		5,275		46,812
60-89 days	4,130		—		2,843		263		2,709		62		2,047		12,054
Total performing loans	3,589,360		1,630,655		1,035,929		2,243,739		1,092,885		182,619		509,870		10,285,057
Non-performing loans:
Non-accrual loans	45,227		11,561		15,044		22,933		10,212		—		7,384		112,361
Loans greater than 90 days past due	133		—		—		161		480		—		—		774
Restructured loans	—		—		—		715		1,602		—		—		2,317
Total non-performing loans	45,360		11,561		15,044		23,809		12,294		—		7,384		115,452
Total loans	$	3,634,720	$	1,642,216	$	1,050,973	$	2,267,548	$	1,105,179	$	182,619	$	517,254	$	10,400,509

The credit quality indicators for commercial loans are developed through review of individual borrowers on an ongoing basis. Each borrower is evaluated at least annually with more frequent evaluation of more severely criticized loans. The indicators represent the rating for loans as of the date presented is based on the most recent credit review performed. These credit quality indicators are defined as follows:

Pass - A pass rated credit is not adversely classified because it does not display any of the characteristics for adverse classification.

Special mention - A special mention credit has potential weaknesses that deserve management’s close attention. If uncorrected, such weaknesses may result in deterioration of the repayment prospects or collateral position at some future date. Special mention assets are not adversely classified and do not warrant adverse classification.

Substandard - A substandard loan is inadequately protected by the current net worth and payment capacity of the obligor or of the collateral pledged, if any. Loans classified as substandard generally have a well-defined weakness, or weaknesses, that jeopardize the liquidation of the debt. These loans are characterized by the distinct possibility of loss if the deficiencies are not corrected.

Doubtful - A loan that is classified as doubtful has all the weaknesses inherent in a loan classified as substandard with added characteristics that the weaknesses make collection or liquidation in full highly questionable and improbable, on the basis of currently existing facts, conditions and values.

Loss – Loans classified as a loss are considered uncollectible and of such little value that their continuing to be carried as a loan is not warranted. This classification is not necessarily equivalent to no potential for recovery or salvage value, but rather that it is not appropriate to defer a full write-off even though partial recovery may be effected in the future.

The following tables provide information about credit quality indicators by the year of origination:

	2021
	Term Loans by Origination Year												Revolving
(In thousands)	2021		2020		2019		2018		2017		Prior		Loans		Total
Commercial Investor R/E:
Pass	$	1,391,969	$	748,236	$	616,761	$	357,640	$	328,327	$	633,913	$	19,239	$	4,096,085
Special Mention	2,210		510		4,646		596		2,204		10,438		—		20,604
Substandard	807		336		4,308		8,568		10,064		574		—		24,657
Doubtful	—		—		—		—		—		—		—		—
Total	$	1,394,986	$	749,082	$	625,715	$	366,804	$	340,595	$	644,925	$	19,239	$	4,141,346
Current period gross charge-offs	$	—	$	—	$	—	$	903	$	3,975	$	924	$	—	$	5,802
Commercial Owner-Occupied R/E:
Pass	$	360,169	$	254,350	$	319,348	$	178,416	$	172,354	$	363,685	$	1,149	$	1,649,471
Special Mention	156		1,476		4,388		9,035		4,456		9,106		—		28,617
Substandard	1,968		1,800		4,028		2,265		354		2,378		—		12,793
Doubtful	—		—		—		—		—		—		—		—
Total	$	362,293	$	257,626	$	327,764	$	189,716	$	177,164	$	375,169	$	1,149	$	1,690,881
Current period gross charge-offs	$	—	$	—	$	—	$	136	$	—	$	—	$	—	$	136
Commercial AD&C:
Pass	$	454,207	$	226,332	$	148,260	$	87,934	$	13,938	$	—	$	152,896	$	1,083,567
Special Mention	2,888		—		—		—		—		—		989		3,877
Substandard	349		—		301		—		—		—		—		650
Doubtful	—		—		—		—		—		—		—		—
Total	$	457,444	$	226,332	$	148,561	$	87,934	$	13,938	$	—	$	153,885	$	1,088,094
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	2,007	$	—	$	—	$	2,007
Commercial Business:
Pass	$	403,871	$	165,194	$	137,069	$	96,800	$	55,100	$	53,764	$	533,893	$	1,445,691
Special Mention	220		1,998		7,030		1,701		548		577		9,212		21,286
Substandard	3,777		3,262		2,609		797		811		2,065		1,536		14,857
Doubtful	—		—		—		—		—		—		—		—
Total	$	407,868	$	170,454	$	146,708	$	99,298	$	56,459	$	56,406	$	544,641	$	1,481,834
Current period gross charge-offs	$	—	$	—	$	88	$	1,674	$	46	$	2,236	$	25	$	4,069
Residential Mortgage:
Beacon score:
660-850	$	246,612	$	165,623	$	46,925	$	65,865	$	102,628	$	223,420	$	—	$	851,073
600-659	11,102		3,285		3,583		4,255		4,645		20,052		—		46,922
540-599	1,472		1,864		2,162		4,522		1,599		8,201		—		19,820
less than 540	452		4,293		1,575		1,829		2,079		9,527		—		19,755
Total	$	259,638	$	175,065	$	54,245	$	76,471	$	110,951	$	261,200	$	—	$	937,570
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Residential Construction:
Beacon score:
660-850	$	134,335	$	45,890	$	8,063	$	2,078	$	1,347	$	1,160	$	—	$	192,873
600-659	1,922		—		650		—		—		—		—		2,572
540-599	—		—		—		—		—		462		—		462
less than 540	1,745		—		—		—		—		—		—		1,745
Total	$	138,002	$	45,890	$	8,713	$	2,078	$	1,347	$	1,622	$	—	$	197,652
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Consumer:
Beacon score:
660-850	$	3,179	$	1,393	$	3,130	$	3,060	$	1,648	$	26,156	$	350,466	$	389,032
600-659	352		123		324		716		430		4,906		14,119		20,970
540-599	58		8		311		160		89		2,809		4,926		8,361
less than 540	88		58		536		544		98		3,101		6,926		11,351
Total	$	3,677	$	1,582	$	4,301	$	4,480	$	2,265	$	36,972	$	376,437	$	429,714
Current period gross charge-offs	$	—	$	—	$	7	$	2	$	—	$	106	$	184	$	299
Total loans	$	3,023,908	$	1,626,031	$	1,316,007	$	826,781	$	702,719	$	1,376,294	$	1,095,351	$	9,967,091

	2020
	Term Loans by Origination Year												Revolving
(In thousands)	2020		2019		2018		2017		2016		Prior		Loans		Total
Commercial Investor R/E:
Pass	$	910,426	$	763,214	$	448,406	$	448,698	$	469,077	$	498,384	$	33,531	$	3,571,736
Special Mention	11,044		—		4,879		833		269		27		—		$	17,052
Substandard	589		4,245		13,649		20,619		673		6,157		—		$	45,932
Doubtful	—		—		—		—		—		—		—		$	—
Total	$	922,059	$	767,459	$	466,934	$	470,150	$	470,019	$	504,568	$	33,531	$	3,634,720
Current period gross charge-offs	$	—	$	388	$	—	$	—	$	—	$	23	$	—	$	411
Commercial Owner-Occupied R/E:
Pass	$	285,310	$	385,058	$	234,578	$	192,634	$	204,925	$	306,840	$	1,664	$	1,611,009
Special Mention	2,290		—		3,027		4,742		134		4,079		—		$	14,272
Substandard	1,610		4,335		2,065		465		219		8,009		—		$	16,703
Doubtful	—		—		—		—		—		232		—		$	232
Total	$	289,210	$	389,393	$	239,670	$	197,841	$	205,278	$	319,160	$	1,664	$	1,642,216
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial AD&C:
Pass	$	485,631	$	261,537	$	149,703	$	50,192	$	89	$	2,357	$	80,764	$	1,030,273
Special Mention	1,711		—		—		—		—		—		—		$	1,711
Substandard	1,439		891		—		13,816		2,843		—		—		$	18,989
Doubtful	—		—		—		—		—		—		—		$	—
Total	$	488,781	$	262,428	$	149,703	$	64,008	$	2,932	$	2,357	$	80,764	$	1,050,973
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial Business:
Pass	$	1,244,822	$	208,682	$	138,861	$	86,830	$	34,498	$	81,760	$	433,016	$	2,228,469
Special Mention	1,929		1,382		1,119		708		309		621		4,319		$	10,387
Substandard	2,914		4,564		3,519		1,631		2,745		3,456		1,829		$	20,658
Doubtful	106		995		849		36		1,284		1,852		2,912		$	8,034
Total	$	1,249,771	$	215,623	$	144,348	$	89,205	$	38,836	$	87,689	$	442,076	$	2,267,548
Current period gross charge-offs	$	—	$	—	$	23	$	160	$	103	$	205	$	—	$	491
Residential Mortgage:
Beacon score:
660-850	$	229,033	$	74,054	$	138,824	$	172,493	$	129,701	$	251,065	$	—	$	995,170
600-659	4,824		7,706		10,763		11,719		8,173		21,424		—		$	64,609
540-599	350		1,238		5,219		2,608		4,791		10,167		—		$	24,373
less than 540	2,702		2,108		3,576		2,150		892		9,599		—		$	21,027
Total	$	236,909	$	85,106	$	158,382	$	188,970	$	143,557	$	292,255	$	—	$	1,105,179
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	11	$	473	$	—	$	484
Residential Construction:
Beacon score:
660-850	$	112,604	$	44,647	$	14,543	$	2,805	$	1,693	$	—	$	172	$	176,464
600-659	1,743		3,189		—		—		—		—		—		$	4,932
540-599	—		—		—		—		369		—		—		$	369
less than 540	854		—		—		—		—		—		—		$	854
Total	$	115,201	$	47,836	$	14,543	$	2,805	$	2,062	$	—	$	172	$	182,619
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Consumer:
Beacon score:
660-850	$	2,575	$	4,609	$	5,112	$	2,110	$	2,614	$	24,444	$	417,737	$	459,201
600-659	374		445		334		428		467		5,401		21,052		$	28,501
540-599	89		1,216		294		339		601		3,926		6,153		$	12,618
less than 540	751		160		525		785		532		2,826		11,355		$	16,934
Total	$	3,789	$	6,430	$	6,265	$	3,662	$	4,214	$	36,597	$	456,297	$	517,254
Current period gross charge-offs	$	—	$	13	$	123	$	8	$	1	$	140	$	148	$	433
Total loans	$	3,305,720	$	1,774,275	$	1,179,845	$	1,016,641	$	866,898	$	1,242,626	$	1,014,504	$	10,400,509

The following table provides the amounts of the restructured loans at the date of restructuring for specific segments of the loan portfolio during the period indicated:

	For the Year Ended December 31, 2021
	Commercial Real Estate
(In thousands)	Commercial Investor R/E		Commercial Owner- Occupied R/E		Commercial AD&C		Commercial Business		All Other Loans		Total
Troubled debt restructurings:
Restructured accruing	$	—	$	—	$	—	$	—	$	—	$	—
Restructured non-accruing	9,594		3,157		—		1,824		—		14,575
Balance	$	9,594	$	3,157	$	—	$	1,824	$	—	$	14,575
Specific allowance	$	—	$	—	$	—	$	461	$	—	$	461
Restructured and subsequently defaulted	$	—	$	—	$	—	$	—	$	—	$	—

	For the Year Ended December 31, 2020
	Commercial Real Estate
(In thousands)	Commercial Investor R/E		Commercial Owner- Occupied R/E		Commercial AD&C		Commercial Business		All Other Loans		Total
Troubled debt restructurings:
Restructured accruing	$	—	$	—	$	—	$	380	$	549	$	929
Restructured non-accruing	723		930		—		1,951		—		3,604
Balance	$	723	$	930	$	—	$	2,331	$	549	$	4,533
Specific allowance	$	65	$	—	$	—	$	955	$	—	$	1,020
Restructured and subsequently defaulted	$	—	$	—	$	—	$	—	$	—	$	—

At December 31, 2021, TDR loans totaled $18.4 million, of which $2.2 million were accruing and $16.2 million were non-accruing. There were no commitments to lend additional funds on loans classified as TDRs as of December 31, 2021. TDR loans at December 31, 2020 totaled $8.5 million, of which $2.3 million were accruing and $6.2 million were non-accruing. Commitments to lend additional funds on TDR loans at December 31, 2020 were insignificant.

During the year ended December 31, 2021, the Company restructured $14.6 million in loans that were designated as TDRs. Modifications consisted principally of interest rate concessions. No modifications resulted in the reduction of the principal in the associated loan balances. TDR loans are subject to periodic credit reviews to determine the necessity and appropriateness of an individual credit loss allowance based on the collectability of the recorded investment in the TDR loan. Loans restructured during 2021 had individual reserves of $0.5 million at December 31, 2021. For the year ended December 31, 2020, the Company restructured $4.5 million in loans. Modifications consisted principally of interest rate concessions and no modifications resulted in the reduction of the recorded investment in the associated loan balances. Loans restructured during 2020 had specific reserves of $1.0 million at December 31, 2020.

For more information on the accounting policies for TDRs see Note 1.

Other Real Estate Owned

OREO totaled $1.0 million and $1.5 million at December 31, 2021 and 2020, respectively. There was one consumer mortgage loan secured by residential real estate property with the total amount of $0.1 million for which formal foreclosure proceedings were in process as of December 31, 2021.

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PREMISES AND EQUIPMENT

12 Months Ended

Dec. 31, 2021

Property, Plant and Equipment [Abstract]

PREMISES AND EQUIPMENT

PREMISES AND EQUIPMENT

Presented in the following table are the components of premises and equipment at December 31:

(In thousands)	2021		2020
Land	$	21,164	$	13,262
Buildings and leasehold improvements	70,193		70,776
Equipment	48,889		49,614
Total premises and equipment	140,246		133,652
Less: accumulated depreciation and amortization	(80,561)		(75,932)
Net premises and equipment	$	59,685	$	57,720

Depreciation and amortization expense for premises and equipment amounted to $7.9 million, $8.5 million, and $7.2 million for each of the years ended December 31, 2021, 2020 and 2019, respectively.

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LEASES

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

LEASES

LEASES

The Company leases real estate properties for its network of bank branches, financial centers and corporate offices. All of the Company’s leases are currently classified as operating. Most lease agreements include one or more options to renew, with renewal terms that can extend the original lease term from one to twenty years or more. The Company does not receive sublease income from any of its leased real estate properties.

The following table provides information regarding the Company's leases as of the dates indicated:

	Year Ended
	2021			2020
Components of lease expense:
Operating lease cost (resulting from lease payments)	$	12,304		$	12,453
Supplemental cash flow information related to leases:
Operating cash flows from operating leases	$	12,930		$	13,571
ROU assets obtained in the exchange for lease liabilities due to:
New leases	$	803		$	871
Acquisitions	$	—		$	7,720
	As of
	December 31, 2021			December 31, 2020
Supplemental balance sheet information related to leases:
Operating lease ROU assets	$	57,872		$	65,215
Operating lease liabilities	$	67,138		$	74,982
Other information related to leases:
Weighted average remaining lease term of operating leases	9.0 years			9.5 years
Weighted average discount rate of operating leases	2.92		%	3.04		%

The Company added two locations from the acquisition of RPJ during the first quarter of 2020. The associated new ROU assets obtained in exchange for lease obligations totaled $0.3 million.

On April 1, 2020, in conjunction with the acquisition of Revere, the Company added 15 additional operating leases (at 12 locations). The associated new ROU assets of $7.4 million obtained in exchange for lease obligations of $8.7 million was recorded at the close of the acquisition. The ROU assets recorded at acquisition included $1.1 million for acquisition related unfavorable fair value marks and a tenant allowance of $0.2 million. During the three months ended June 30, 2020, subsequent to and resulting from the acquisition, the Company determined that due to market overlap and other synergies, the Company would more likely than not terminate seven of the acquired leases, comprised of six branch locations and one office space location. The decision resulted in an impairment charge of $2.3 million, which was recorded to merger and acquisition expense in the Consolidated Statements of Income during the second quarter of 2020. The Company estimated the fair value of the leases to be equal to the cash payments remaining between the impairment date and the anticipated abandonment date. There was no impairment charge recorded during 2021.

As of December 31, 2021, the maturities of the Company’s operating lease liabilities were as follows:

(In thousands)	Amount
Maturity:
One year	$	11,493
Two years	11,484
Three years	9,580
Four years	7,758
Five years	6,924
Thereafter	30,571
Total undiscounted lease payments	77,810
Less: Present value discount	(10,672)
Lease Liability	$	67,138

The Company recognized a lease liability of $0.9 million and ROU asset of $0.7 million for one operating lease that has not yet commenced operations at December 31, 2021, and is expected to commence operations during the first quarter of 2022. This ROU asset includes approximately $0.1 million of tenant allowance for improvements to the space. The Company does not have any lease arrangements with any of its related parties as of December 31, 2021

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GOODWILL AND OTHER INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLE ASSETS

GOODWILL AND OTHER INTANGIBLE ASSETS

The gross carrying amounts and accumulated amortization of intangible assets and goodwill are presented at December 31 in the following table:

	2021						Weighted	2020						Weighted
	Gross				Net		Average	Gross				Net		Average
	Carrying		Accumulated		Carrying		Remaining	Carrying		Accumulated		Carrying		Remaining
(Dollars in thousands)	Amount		Amortization		Amount		Life	Amount		Amortization		Amount		Life
Amortizing intangible assets:
Core deposit intangibles	$	29,038	$	(12,624)	$	16,414	7.4 years	$	29,038	$	(7,969)	$	21,069	8.4 years
Other identifiable intangibles	13,906		(4,400)		9,506		9.7 years	13,906		(2,454)		11,452		10.7 years
Total amortizing intangible assets	$	42,944	$	(17,024)	$	25,920		$	42,944	$	(10,423)	$	32,521
Goodwill	$	370,223			$	370,223		$	370,223			$	370,223

The following table presents the net carrying amount of goodwill by segment for the periods indicated:

(In thousands)	Community Banking		Insurance		Investment Management		Total
Balance December 31, 2019	$	331,173	$	6,788	$	9,188	$	347,149
Acquisition of Rembert Pendleton Jackson	—		—		22,559		22,559
Acquisition of Revere Bank	515		—		—		515
Balance December 31, 2020	331,688		6,788		31,747		370,223
No Activity	—		—		—		—
Balance December 31, 2021	$	331,688	$	6,788	$	31,747	$	370,223

The following table presents the estimated future amortization expense for amortizing intangible assets within the years ending December 31:

(In thousands)	Amount
2022	$	5,844
2023	5,089
2024	4,333
2025	3,567
2026	2,732
Thereafter	4,355
Total amortizing intangible assets	$	25,920

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DEPOSITS

12 Months Ended

Dec. 31, 2021

Deposits [Abstract]

DEPOSITS

DEPOSITS

The following table presents the composition of deposits at December 31 for the years indicated:

(In thousands)	2021		2020
Noninterest-bearing deposits	$	3,779,630	$	3,325,547
Interest-bearing deposits:
Demand	1,604,714		1,292,164
Money market savings	3,415,663		3,339,645
Regular savings	533,862		418,051
Time deposits of less than $250,000	910,464		1,180,636
Time deposits of $250,000 or more	380,398		477,026
Total interest-bearing deposits	6,845,101		6,707,522
Total deposits	$	10,624,731	$	10,033,069

Demand deposit overdrafts reclassified as loan balances were $1.8 million and $13.1 million at December 31, 2021 and 2020, respectively. Overdraft charge-offs and recoveries are reflected in the allowance for credit losses.

The following table presents the maturity schedule for time deposits maturing within years ending December 31:

(In thousands)	Amount
2022	$	1,002,132
2023	165,131
2024	89,074
2025	16,464
2026	17,881
Thereafter	180
Total time deposits	$	1,290,862

The Company's time deposits of less than $250,000 represented 8.6% of total deposits and time deposits of $250,000 or more represented 3.6% of total deposits at December 31, 2021 and are presented by maturity in the following table:

	Months to Maturity
(In thousands)	3 or Less		Over 3 to 6		Over 6 to 12		Over 12		Total
Time deposits - less than $250,000	$	277,975	$	226,476	$	215,245	$	190,768	$	910,464
Time deposits - $250,000 or more	$	88,510	$	93,719	$	100,207	$	97,962	$	380,398

Interest expense on time deposits of less than $250,000 amounted to $6.0 million, $16.5 million, and $20.8 million and interest expense on time deposits of $250,000 of more amounted to $3.0 million, $10.7 million, and $13.0 million for the years ended December 31, 2021, 2020 and 2019, respectively.

Deposits received in the ordinary course of business from the directors and officers of the Company and their related interests amounted to $89.5 million and $73.4 million for the years ended December 31, 2021 and 2020, respectively.

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BORROWINGS

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

BORROWINGS

BORROWINGS

Subordinated Debt

On November 5, 2019, the Company completed an offering of $175.0 million aggregate principal amount Fixed to Floating Rate Subordinated Notes due in 2029. The notes bear a fixed interest rate of 4.25% per year through November 14, 2024. Beginning November 15, 2024, the interest rate will become a floating rate equal to three-month LIBOR, or an alternative benchmark rate as determined pursuant to the terms of the indenture for the notes in the event LIBOR has been discontinued by November 15, 2024, plus 262 basis points through the remaining maturity or early redemption date of the notes. The interest will be paid in arrears semi-annually during the fixed rate period and quarterly during the floating rate period. The Company incurred $2.9 million of debt issuance costs which are being amortized through the contractual life of the debt. The entire amount of subordinated debt is considered Tier 2 capital under current regulatory guidelines.

In conjunction with the acquisition of WashingtonFirst Bankshares, Inc. ("WashingtonFirst"), the Company assumed $25.0 million in subordinated debt with an associated purchase premium at acquisition of $2.2 million. The premium was amortized over the contractual life of the obligation. The subordinated debt had a maturity of 10 years, maturing on October 15, 2025, and was non-callable through October 15, 2020. The subordinated debt held a fixed interest rate of 6.00% per annum through October 5, 2020 at which point the rate became variable at the three-month LIBOR plus 457 basis points payable quarterly. On July 15, 2021, the Company redeemed the entire outstanding principal balance of the WashingtonFirst subordinated debt.

In conjunction with the acquisition of Revere, the Company assumed $31.0 million in subordinated debt with an associated purchase premium at acquisition of $0.2 million, which was amortized through the call date. The subordinated debt had a 10-year term, maturing on September 30, 2026, and was non-callable until September 30, 2021. The subordinated debt had a fixed interest rate of 5.625% per annum, payable semi-annually, through September 30, 2021 at which point the interest rate reset quarterly to an amount equal to three month LIBOR plus 441 basis points. On September 30, 2021, the Company redeemed the entire outstanding principal balance of the Revere subordinated debt.

The Company assumed $10.3 million in callable junior subordinated debt securities with an associated purchase premium at acquisition of $0.1 million in conjunction with the acquisition of WashingtonFirst. During the first quarter of 2020, the Company redeemed all $10.3 million of the outstanding principal balance of the callable junior subordinated debt securities.

The following table provides information on subordinated debentures for the period indicated:

(In thousands)	2021		2020
Fixed to floating rate sub debt, 4.25%	$	175,000	$	175,000
WashingtonFirst sub debt	—		25,000
Revere fixed to floating rate sub debt	—		31,000
Total subordinated debt	175,000		231,000
Less: Subordinated debt held as investments by Sandy Spring	—		(3,000)
Add: Purchase accounting premium	—		1,669
Less: Debt issuance costs	(2,288)		(2,581)
Net subordinated debt	172,712		227,088
Long-term borrowings	$	172,712	$	227,088

Other Borrowings

Information relating to retail repurchase agreements and federal funds purchased is presented in the following table at and for the years ending December 31:

	2021				2020
(Dollars in thousands)	Amount		Rate		Amount		Rate
End of period:
Retail repurchase agreements	$	141,086	0.12	%	$	153,157	0.11	%
Federal funds purchased	—		—		390,000		0.10
Average for the year:
Retail repurchase agreements	$	143,734	0.12	%	$	142,283	0.32	%
Federal funds purchased	15,154		0.08		367,240		0.41
Maximum month-end balance:
Retail repurchase agreements	$	154,413			$	153,157
Federal funds purchased	60,000				921,289

The Company pledges U.S. Agencies securities, based upon their market values, as collateral for greater than 102.5% of the principal of its retail repurchase agreements.

At December 31, 2021, the Company had an available line of credit with the FHLB under which its borrowings are limited to $3.9 billion based on pledged collateral at prevailing market interest rates, with no outstanding borrowings against it. At December 31, 2020, lines of credit totaled $3.0 billion based on pledged collateral with $379.1 million borrowed against the line. During the year ended December 31, 2021, the Company early repaid $279.0 million of FHLB advances, resulting in a prepayment penalty of $9.1 million, which was recorded in other non-interest expense in the Consolidated Statements of Income.

Under a blanket lien, the Company has pledged qualifying residential mortgage loans amounting to $829.1 million, commercial real estate loans amounting to $3.1 billion, home equity lines of credit (“HELOC”) amounting to $224.4 million and multifamily loans amounting to $333.4 million at December 31, 2021 as collateral under the borrowing agreement with the FHLB. At December 31, 2020, the Company had pledged collateral of qualifying mortgage loans of $1.0 billion, commercial real estate loans of $2.8 billion, HELOC loans of $226.2 million and multifamily loans of $237.6 million under the FHLB borrowing agreement.

The Company also had secured lines of credit available from the Federal Reserve and correspondent banks of $509.4 million and $276.2 million at December 31, 2021 and 2020, respectively, collateralized by loans, with no borrowings outstanding at the end of either period. In addition, the Company had unsecured lines of credit with correspondent banks of $1.3 billion and $1.1 billion at

December 31, 2021 and 2020. Of the unsecured lines of credit available there were no outstanding borrowings at December 31, 2021 and $390.0 million outstanding borrowings at December 31, 2020.

At December 31, 2021, the Company did not have any borrowings outstanding under the Paycheck Protection Program Liquidity Facility ("PPPLF").

Advances from the FHLB and the respective maturity schedule at December 31 for the years indicated consisted of the following:

	2021				2020
(Dollars in thousands)	Amounts		Weighted Average Rate		Amounts		Weighted Average Rate
Maturity:
One year	$	—	—	%	$	230,243	2.39	%
Two years	—		—		76,332		2.37
Three years	—		—		72,500		3.12
Four years	—		—		—		—
Five years	—		—		—		—
After five years	—		—		—		—
Total advances from FHLB	$	—	—		$	379,075	2.52

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STOCKHOLDERS' EQUITY

12 Months Ended

Dec. 31, 2021

Equity [Abstract]

STOCKHOLDERS' EQUITY

STOCKHOLDERS’ EQUITY

The Company’s Articles of Incorporation authorize 100,000,000 shares of capital stock (par value $1.00 per share). Issued shares have been classified as common stock. The Articles of Incorporation provide that remaining unissued shares may later be designated as either common or preferred stock.

The Company maintains an employee stock purchase plan (the “Purchase Plan”) that enables employees to purchase up to $25,000 of Company common stock each year at a discount. The Purchase Plan, which was initially authorized on July 1, 2011, was amended and restated as of November 18, 2020. As part of the amendment and restatement, an additional 700,000 shares of common stock were reserved to be issued, which is in addition to the 300,000 shares of common stock authorized for purchase under the previous version of the Purchase Plan. Under the Purchase Plan, shares are purchased at 85% of the lower of the fair market value of the common stock on the offering date or the purchase date, as defined in the Purchase Plan. Contributions are made through monthly payroll deductions of not less than 1% or more than 10% of cash compensation paid in the month. The Purchase Plan is administered by a committee of at least three directors appointed by the board of directors. At December 31, 2021, there were 647,455 shares available for issuance under this Purchase Plan.

In December 2020, the Company's board of directors authorized a stock repurchase plan that permits the repurchase of up to 2,350,000 shares of common stock. During 2021, the Company repurchased and retired all 2,350,000 shares of common stock at an average price of $45.65 per share for a total cost of $107.3 million. Under the previous stock repurchase plan that was approved in 2018 and expired in December 2020, the Company was authorized to repurchase up to 1,800,000 shares. During 2020, the Company repurchased and retired 820,328 common shares for the total cost of $25.7 million. Cumulatively under the previous plan, as of December 31, 2020, the Company repurchased and retired 1,488,519 shares of its common stock at an average price of $33.58 per share for a total cumulative cost of $50.0 million.

The Company has a dividend reinvestment plan that is sponsored and administered by Computershare as independent agent, which enables current shareholders as well as first-time buyers to purchase and sell common stock of Sandy Spring Bancorp, Inc. directly through Computershare. Participants may reinvest cash dividends and make periodic supplemental cash payments to purchase additional shares.

Bank and bank holding company regulations, as well as Maryland law, impose certain restrictions on dividend payments by the Bank, as well as restrictions on extensions of credit and transfers of assets between the Bank and the Company. At December 31, 2021, the

Bank could have paid additional dividends of $126.6 million to its parent company without regulatory approval. There were no loans outstanding between the Bank and the Company at December 31, 2021 and 2020, respectively.

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SHARE BASED COMPENSATION

12 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Abstract]

SHARE BASED COMPENSATION

SHARE BASED COMPENSATION

At December 31, 2021, the Company had two share based compensation plans in existence, the 2005 Omnibus Stock Plan (“Omnibus Stock Plan”) and the 2015 Omnibus Incentive Plan (“Omnibus Incentive Plan”). The Omnibus Stock Plan expired during the second quarter of 2015 but has outstanding options that may still be exercised. The Omnibus Incentive Plan is described in the following paragraph.

The Company’s Omnibus Incentive Plan was approved on May 6, 2015 and provides for the granting of incentive stock options, non-qualifying stock options, stock appreciation rights, restricted stock awards ("RSAs"), restricted stock units ("RSUs") and performance share units ("PSUs") to selected directors and employees on a periodic basis at the discretion of the Company’s board of directors. The Omnibus Incentive Plan authorizes the issuance of up to 1,500,000 shares of common stock, of which 794,433 shares are available for issuance at December 31, 2021, has a term of ten years, and is administered by a committee of at least three directors appointed by the board of directors. Awards of share-based compensation typically vest in equal increments either over three or five year vesting periods on the grant date anniversary. Settlement of share-based incentive awards is generally through the issuance of previously unissued shares of common stock. The Company discontinued issuing stock options in 2018.

The value associated with the grant of RSAs is determined by multiplying the fair market value of the Company's common stock on the grant date by the number of shares awarded. Employees have the right to vote the shares and receive cash or stock dividends for the unvested RSAs. Non-vested shares of restricted stock awards are considered participating securities that have an immaterial impact on the computation of earnings per share. Any non-vested shares are subject to forfeiture upon termination of employment. A portion of the total RSAs granted in 2019 were based on the relative market performance of the Company's stock with another portion based on the financial performance of the Company. Compensation expense for awards based on the market performance of the Company's stock is based on their fair value determined using a probability based Monte-Carlo simulation valuation model. The expense on those awards is recognized regardless of whether the criteria for vesting is achieved. Compensation expense related to the achievement of performance criteria is variable and based on the fair market value of the Company's common stock and an assessment of the probability of achieving specified metrics and is adjusted periodically. Ultimately, the number of awards that vest can range from zero to 150% of the grant amount based on the achievement level compared to the specified performance or market-based criteria.

PSUs may be granted annually and are subject to the Company's achievement of specified performance criteria over a three year period. The value of the PSU grant is determined by multiplying the fair market value of the Company's common stock on the grant date by the total initial number of shares awarded. A portion of the total PSUs granted in 2020 were based on the relative market performance of the Company's stock with another portion based on the financial performance of the Company. Compensation expense for awards based on the market performance of the Company's stock is based on their fair value determined using a probability based Monte-Carlo simulation valuation model. The expense on those awards is recognized regardless of whether the criteria for vesting is achieved. Compensation expense related to the achievement of specified performance criteria is variable and based on the fair market value of the Company's common stock and an assessment of the probability of achieving specified metrics and is adjusted periodically. Beginning in 2021, the PSU's granted annually are based on the Company's return on tangible common equity ("ROTCE") compared to a specified peer group's ROTCE over a three year period. The number of awards that vest can range from zero to 150% of the grant amount based on the achievement level compared to the specified performance or market-based criteria. Dividends that accrue during the vesting period are reinvested in dividend equivalent share units. PSUs and the related dividend equivalent share units are converted into shares of common stock at vesting. Upon qualifying employee retirement, shares can continue to vest through the initial grant period should the vesting criteria continue to be met. PSUs are not considered participating securities and do not impact the computation of earnings per share.

Options granted under the plan have an exercise price which may not be less than 100% of the fair market value of the common stock on the date of the grant and must be exercised within seven to ten years from the date of grant depending on the terms of the grant agreement. The exercise price of stock options must be paid for in full in cash or shares of common stock, or a combination of both. The board committee has the discretion when making a grant of stock options to impose restrictions on the shares to be purchased upon the exercise of such options. The Company generally issues authorized but previously unissued shares to satisfy option exercises. Compensation expense is based on the fair value of the options using the following assumptions in the Black-Scholes binomial option-pricing model. The dividend yield is based on the estimated future dividend yields. The risk-free rate for periods within the

contractual term of the share option is based on the U.S. Treasury yield curve in effect at the time of the grant. Expected volatility is generally based on historical volatility. The expected term of share options granted is generally derive from historical experience.

All stock compensation expense is recognized on a straight-line basis over the vesting period of the respective stock option, restricted stock, restricted stock unit grants or performance share units. Compensation associated with the performance share units is variable in nature based on the probability of achieving specific criteria. Compensation expense of $5.3 million, $3.9 million, and $2.9 million was recognized for the years ended December 31, 2021, 2020 and 2019, respectively, related to the awards of stock options, restricted stock grants, restricted stock unit grants and performance share unit grants. The intrinsic value for the stock options exercised was $8.0 million, $0.4 million, and $0.2 million in the years ended December 31, 2021, 2020 and 2019, respectively. There was no unrecognized compensation cost related to stock options at December 31, 2021. The total of unrecognized compensation cost related to restricted stock awards, restricted stock unit grants, and performance share unit grants was approximately $8.2 million at December 31, 2021. That cost is expected to be recognized over a weighted average period of approximately 2.1 years.

During the year ended December 31, 2021, the Company granted 128,557 restricted shares, restricted stock units and performance share units under the Omnibus Incentive Plan, of which 32,728 units are subject to achievement of certain performance conditions measured over a three-year performance period and 95,829 are restricted shares or units subject to a three year vesting schedule.

A summary of share option activity for the period indicated is reflected in the following table:

	Number of Common Shares	Weighted Average Exercise Share Price		Weighted Average Contractual Remaining Life (Years)	Aggregate Intrinsic Value (in thousands)
Balance at January 1, 2021	430,038	$	14.97		$	6,828
Granted	—	$	—
Exercised	(270,297)	$	13.67		$	7,979
Forfeited	—	$	—
Expired	—	$	—
Balance at December 31, 2021	159,741	$	17.18	2.4 years	$	5,264
Exercisable at December 31, 2021	159,741	$	17.18	2.4 years	$	5,264

A summary of the activity for the Company’s restricted stock for the period indicated is presented in the following table:

(In dollars, except share data):	Number of Common Shares	Weighted Average Grant-Date Fair Value
Restricted stock at January 1, 2021	391,683	$	29.50
Granted	128,557	$	41.05
Vested	(119,228)	$	31.48
Forfeited/ cancelled	(10,492)	$	31.93
Restricted stock at December 31, 2021	390,520	$	32.67

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PENSION, PROFIT SHARING, AND OTHER EMPLOYEE BENEFIT PLANS

12 Months Ended

Dec. 31, 2021

Retirement Benefits [Abstract]

PENSION, PROFIT SHARING, AND OTHER EMPLOYEE BENEFIT PLANS

PENSION, PROFIT SHARING, AND OTHER EMPLOYEE BENEFIT PLANS

Defined Benefit Pension Plan

The Company has a qualified, noncontributory, defined benefit pension plan (the “Pension Plan”) covering substantially all employees. All benefit accruals for employees were frozen as of December 31, 2007 based on past service and thus future salary increases and additional years of service will no longer affect the defined benefit provided by the Pension Plan although additional vesting may continue to occur.

Several factors affect the net periodic benefit cost of the plan, including (1) the size and characteristics of the plan population, (2) the discount rate, (3) the expected long-term rate of return on plan assets and (4) other actuarial assumptions. Pension cost is directly related to the number of employees covered by the plan and other factors including salary, age, years of employment, and the terms of the plan. As a result of the plan freeze, the characteristics of the plan population should not have a materially different effect in future years. The discount rate is used to determine the present value of future benefit obligations. The discount rate is determined by matching the expected cash flows of the plan to a yield curve based on long term, high quality fixed income debt instruments available as of the measurement date, which is December 31 of each year. The discount rate is adjusted each year on the measurement date to reflect current market conditions. The expected long-term rate of return on plan assets is based on a number of factors that include expectations of market performance and the target asset allocation adopted in the plan investment policy. Should actual asset returns deviate from the projected returns, this can affect the benefit plan expense recognized in the financial statements.

The Company's funding policy is to contribute amounts to the Pension Plan sufficient to meet the minimum funding requirements of the Employee Retirement Income Security Act of 1974 (“ERISA”), as amended. In addition, the Company contributes additional amounts as it deems appropriate based on benefits attributed to service prior to the date of the Pension Plan freeze. The Pension Plan invests primarily in a diversified portfolio of managed fixed income and equity funds.

The Pension Plan’s funded status at December 31 is as follows:

(In thousands)	2021		2020
Reconciliation of Projected Benefit Obligation:
Projected obligation at January 1	$	52,426	$	45,497
Interest cost	1,269		1,437
Actuarial (gain)/ loss	(22)		290
Benefit payments	(1,115)		(1,470)
Increase/ (decrease) related to change in assumptions	(2,040)		6,672
Settlement - lump sum payments	(2,439)		—
Projected obligation at December 31	48,079		52,426
Reconciliation of Fair Value of Plan Assets:
Fair value of plan assets at January 1	48,357		43,457
Actual return on plan assets	(596)		6,370
Employer contributions	1,000		—
Benefit payments	(1,115)		(1,470)
Settlement - lump sum payments	(2,439)		—
Fair value of plan assets at December 31	$	45,207	$	48,357
Funded status at December 31	$	(2,872)	$	(4,069)
Accumulated benefit obligation at December 31	$	48,079	$	52,426
Unrecognized net actuarial loss	$	11,030	$	12,719
Net periodic pension cost not yet recognized	$	11,030	$	12,719

Weighted average assumptions used to determine benefit obligations at December 31 are presented in the following table:

	2021	2020	2019
Discount rate	2.80%	2.50%	3.25%
Rate of compensation increase	N/A	N/A	N/A

The components of net periodic benefit cost for the years ended December 31 are presented in the following table:

(In thousands)	2021		2020		2019
Interest cost on projected benefit obligation	$	1,269	$	1,437	$	1,609
Expected return on plan assets	(1,247)		(1,821)		(1,647)
Recognized net actuarial loss	909		874		1,059
Settlement charge	560		—		—
Net periodic benefit cost	$	1,491	$	490	$	1,021

Components of the net periodic benefit cost are recorded in salaries and employee benefits expense in the Consolidated Statement of Income.

Weighted average assumptions used to determine net periodic benefit cost for years ended December 31 are presented in the following table:

	2021	2020	2019
Discount rate	2.50%	3.25%	4.15%
Expected return on plan assets	3.25%	4.75%	5.00%
Rate of compensation increase	N/A	N/A	N/A

The expected rate of return on assets of 3.25% reflects the Pension Plan’s predominant investment of assets in fixed income mutual funds and was developed as a weighted average rate based on the target asset allocation of the Plan. Key economic inputs used included future inflation, economic growth, and interest rate environment.

The following table reflects the components of the net unrecognized benefits costs that is reflected in accumulated other comprehensive income/ (loss) for the periods indicated. Additions/ reductions represent the change in the unrecognized actuarial gain/ loss during the period. Reclassifications represent the portion of the unrecognized benefits that are recognized each period as a component of the net periodic benefit cost.

(In thousands)	Unrecognized Net Loss
Included in accumulated other comprehensive loss at January 1, 2019	$	12,352
Reductions during the year	(5,176)
Reclassifications due to recognition as net periodic pension cost	(1,059)
Increase related to change in assumptions	5,060
Included in accumulated other comprehensive loss as of December 31, 2019	11,177
Reductions during the year	(4,256)
Reclassifications due to recognition as net periodic pension cost	(874)
Increase related to change in assumptions	6,672
Included in accumulated other comprehensive loss as of December 31, 2020	12,719
Additions during the year	1,842
Reclassifications due to recognition as net periodic pension cost	(909)
Settlement charge	(560)
Decrease related to change in assumptions	(2,062)
Included in accumulated other comprehensive loss as of December 31, 2021	11,030
Applicable tax effect	(2,827)
Included in accumulated other comprehensive loss net of tax effect at December 31, 2021	$	8,203
Amount expected to be recognized as part of net periodic pension cost in the next fiscal year	$	674

There are no plan assets expected to be returned to the employer in the next twelve months.

The following items have not yet been recognized as a component of net periodic benefit cost at December 31:

(In thousands)	2021		2020		2019
Net actuarial loss	$	11,030	$	12,719	$	11,177
Net periodic benefit cost not yet recognized	$	11,030	$	12,719	$	11,177

Pension Plan Assets

The Company’s Pension Plan weighted average allocations at December 31 are presented in the following table:

	2021		2020
Asset Category:
Equity Securities Mutual Funds	11.5	%	11.6	%
Fixed Income Mutual Funds	88.5	%	88.4	%
Total pension plan assets	100.0	%	100.0	%

The Company has a written investment policy approved by the board of directors that governs the investment of the defined benefit pension fund trust portfolio. The investment policy is designed to provide limits on risk that is undertaken by the investment managers both in terms of market volatility of the portfolio and the quality of the individual assets that are held in the portfolio. The investment

policy statement focuses on the following areas of concern: preservation of capital, diversification, risk tolerance, investment duration, rate of return, liquidity, and investment management costs.

The Company has constituted the Retirement Plans Investment Committee (“RPIC”) in part to monitor the investments of the Pension Plan as well as to recommend to executive management changes in the Investment Policy Statement which governs the Pension Plan’s investment operations. These recommendations include asset allocation changes based on a number of factors including the investment horizon for the Pension Plan. The Company uses outside third parties to advise RPIC on the Pension Plan’s investment matters.

Investment strategies and asset allocations are based on careful consideration of Pension Plan liabilities, the Pension Plan’s funded status and the Company’s financial condition. Investment performance and asset allocation are measured and monitored on an ongoing basis. Management allocates plan assets towards fixed income securities in order to align expected cash outflows with its funding source. This asset allocation has been set after taking into consideration the Pension Plan’s current frozen status and the possibility of partial plan terminations over the intermediate term. The Pension Plan’s asset allocation remained consistent during the current year.

Market volatility risk is controlled by limiting the asset allocation of the most volatile asset class, equities, to no more than 70% of the portfolio and by ensuring that there is sufficient liquidity to meet distribution requirements from the portfolio without disrupting long-term assets. Diversification of the equity portion of the portfolio is controlled by limiting the value of any initial acquisition so that it does not exceed 5% of the market value of the portfolio when purchased. The policy requires the sale of any portion of an equity position when its value exceeds 10% of the portfolio. Fixed income market volatility risk is managed by limiting the term of fixed income investments to five years. Fixed income investments must carry an “A” or better rating by a recognized credit rating agency. Corporate debt of a single issuer may not exceed 10% of the market value of the portfolio. The investment in derivative instruments such as “naked” call options, futures, commodities, and short selling is prohibited. Investment in equity index funds and the writing of “covered” call options (a conservative strategy to increase portfolio income) are permitted. Foreign currency-denominated debt instruments are not permitted. At December 31, 2021, management is of the opinion that there are no significant concentrations of risk in the assets of the plan with respect to any single entity, industry, country, commodity or investment fund that are not otherwise mitigated by the Federal Deposit Insurance Corporation ("FDIC") insurance available to the participants of the Pension Plan and collateral pledged for any such amount that may not be covered by FDIC insurance. Investment performance is measured against industry accepted benchmarks. The risk tolerance and asset allocation limitations imposed by the policy are consistent with attaining the rate of return assumptions used in the actuarial funding calculations. The RPIC committee meets quarterly to review the activities of the investment managers to ensure adherence with the Investment Policy Statement.

Fair Values

The fair values of the Company’s Pension Plan assets by asset category at December 31 are presented in the following tables:

	2021
(In thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Asset Category:
Mutual funds:
Large cap U.S. equity funds	$	2,231	$	575	$	—	$	2,806
Small/Mid cap U.S. equity funds	—		1,536		—		1,536
International equity funds	875		—		—		875
Short-term fixed income funds	9,558		30,432		—		39,990
Total mutual funds	12,664		32,543		—		45,207
Total pension plan assets	$	12,664	$	32,543	$	—	$	45,207

	2020
(In thousands)	Quoted Prices In Active Markets for  Identical Assets  (Level 1)		Significant Other  Observable  Inputs  (Level 2)		Significant Unobservable  Inputs  (Level 3)		Total
Asset Category:
Mutual funds:
Large cap U.S. equity funds	$	2,779	$	543	$	—	$	3,322
Small/Mid cap U.S. equity funds	—		1,124		—		1,124
International equity funds	1,183		—		—		1,183
Short-term fixed income funds	—		4,299		—		4,299
Fixed income funds	10,724		27,705		—		38,429
Total mutual funds	14,686		33,671		—		48,357
Total pension plan assets	$	14,686	$	33,671	$	—	48,357

Contributions

The decision as to whether or not to make a plan contribution and the amount of any such contribution is dependent on a number of factors. Such factors include the investment performance of the plan assets in the current economy and, since the Pension Plan is currently frozen, the remaining investment horizon of the Pension Plan. After consideration of these factors, the Company made a $1.0 million contribution in 2021. Management continues to monitor the funding level of the Pension Plan and may make contributions as necessary during 2022.

Estimated Future Benefit Payments

Benefit payments, which reflect expected future service, as appropriate, that are expected to be paid for the years ending December 31 are presented in the following table:

(In thousands)	Pension Benefits
2022	$	3,210
2023	1,990
2024	3,240
2025	2,330
2026	3,160
Thereafter	14,540

Sandy Spring Bank 401(k) Plan

The Sandy Spring Bank 401(k) Plan (“the 401(k)”) is voluntary and covers all eligible employees after 90 days of service. The 401(k) provides that employees contributing to the 401(k) receive a matching contribution of 100% of the first 4% of compensation and 50% of the next 2% of compensation subject to employee contribution limitations. The Company matching contribution vests immediately. The 401(k) permits employees to purchase shares of the Company’s common stock with their 401(k) contributions, Company match, and other contributions under the 401(k). The Company’s matching contribution to the 401(k), which is included in salaries and employee benefits in non-interest expenses in the Consolidated Statements of Income, totaled $6.0 million, $5.3 million, and $4.1 million in 2021, 2020 and 2019, respectively.

Executive Incentive Retirement Plan

The Executive Incentive Retirement Plan ("Executive Plan") is a non-qualified deferred compensation defined contribution plan that provides for contributions to be made to the participants’ plan accounts based on the attainment of a level of financial performance compared to a selected group of peer banks. This level of performance is determined annually by the board of directors. Benefit costs related to the Executive Plan included in salaries and employee benefits in non-interest expenses in the Consolidated Statements of Income for 2021, 2020 and 2019 were $0.7 million, $0.6 million, and $0.5 million, respectively.

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OTHER NON-INTEREST INCOME AND OTHER NON-INTEREST EXPENSE

12 Months Ended

Dec. 31, 2021

Other Income and Expenses [Abstract]

OTHER NON-INTEREST INCOME AND OTHER NON-INTEREST EXPENSE

OTHER NON-INTEREST INCOME AND OTHER NON-INTEREST EXPENSE

Selected components of other non-interest income and other non-interest expense for the years ended December 31 are presented in the following table:

(In thousands)	2021		2020		2019
Letter of credit fees	$	910	$	710	$	389
Extension fees	811		1,967		1,287
Swap fee income	511		1,607		1,932
Prepayment penalty fees	3,216		961		404
Other income	9,869		3,976		4,768
Total other non-interest income	$	15,317	$	9,221	$	8,780

(In thousands)	2021		2020		2019
Postage and delivery	$	1,906	$	1,624	$	1,502
Communications	2,508		2,729		2,414
Loss on FHLB redemption	9,117		5,928		—
Mortgage processing expense, net	1,504		1,381		817
Online services	2,209		1,591		1,375
Provision for credit losses on unfunded loan commitments	(1,236)		1,576		—
Franchise taxes	1,644		1,574		1,307
Insurance	1,586		1,311		1,113
Card transaction expense	1,183		1,083		1,031
Office supplies	742		912		957
Other expenses	13,229		10,894		9,910
Total other non-interest expense	$	34,392	$	30,603	$	20,426

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INCOME TAXES

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

The following table provides the components of income tax expense for the years ended December 31:

(In thousands)	2021		2020		2019
Current income taxes:
Federal	$	48,445	$	43,115	$	28,404
State	15,850		13,785		6,598
Total current	64,295		56,900		35,002
Deferred income taxes:
Federal	9,634		(22,793)		234
State	2,623		(6,636)		1,192
Total deferred	12,257		(29,429)		1,426
Total income tax expense	$	76,552	$	27,471	$	36,428

The Company does not have uncertain tax positions that are deemed material, and did not recognize any adjustments for unrecognized tax benefits.

The Company is subject to U.S. federal income tax and income tax in various state jurisdictions. All tax years ending after December 31, 2017 are open to examination. The examination by the District of Columbia for the tax years 2017-2019 was finalized in 2021 with no adjustments.

Temporary differences between the amounts reported in the financial statements and the tax bases of assets and liabilities result in deferred taxes. Deferred tax assets and liabilities, shown as the sum of the appropriate tax effect for each significant type of temporary difference, are presented in the following table at December 31 for the years indicated:

(In thousands)	2021		2020
Deferred tax assets:
Allowance for credit losses	$	27,980	$	42,231
Lease liability	17,280		19,192
Employee benefits	7,740		6,108
Unrealized losses on pension plan	2,827		3,249
Deferred loan fees and costs	3,879		4,486
Equity based compensation	1,636		1,856
Unrealized losses on investments available-for-sale	121		—
Losses on other real estate owned	21		203
Other than temporary impairment	76		75
Loan and deposit premium/discount	553		1,081
Reserve for recourse loans	223		546
Net operating loss carryforward	2,023		1,475
Other	207		181
Gross deferred tax assets	64,566		80,683
Valuation allowance	(2,137)		(1,479)
Net deferred tax asset	62,429		79,204
Deferred tax liabilities:
Right of use asset	(14,888)		(16,693)
Unrealized gains on investments available-for-sale	—		(9,684)
Pension plan costs	(2,092)		(2,211)
Depreciation	(2,552)		(2,950)
Intangible assets	(5,653)		(6,894)
Bond accretion	(78)		(195)
Section 481 adjustments	—		(669)
Fair value acquisition adjustments	(624)		(555)
Other	(626)		(567)
Gross deferred tax liabilities	(26,513)		(40,418)
Net deferred tax asset	$	35,916	$	38,786

The Company has approximately $29.9 million of state net operating loss carryover which begins to expire in 2032. The Company believes that it is more likely than not that the future benefit from the state net operating loss carryover will not be realized. As such, there is a valuation allowance on the deferred tax assets of the jurisdictions in which those net operating losses relate.

The reconcilements between the statutory federal income tax rate and the effective rate for the years ended December 31 are presented in the following table:

(Dollars in thousands)	2021				2020				2019
	Amount		Percentage of Pre-Tax Income		Amount		Percentage of Pre-Tax Income		Amount		Percentage of Pre-Tax Income
Income tax expense at federal statutory rate	$	65,448	21.0	%	$	26,130	21.0	%	$	32,101	21.0	%
Increase/ (decrease) resulting from:
Tax exempt income, net	(2,271)		(0.7)		(2,472)		(2.0)		(2,101)		(1.4)
Bank-owned life insurance	(602)		(0.2)		(567)		(0.5)		(665)		(0.4)
State income taxes, net of federal income tax benefits	14,593		4.7		5,648		4.5		6,154		4.0
Federal tax law change	—		—		(1,764)		(1.4)		—		—
Other, net	(616)		(0.2)		496		0.5		939		0.6
Total income tax expense and rate	$	76,552	24.6	%	$	27,471	22.1	%	$	36,428	23.8	%

Under the CARES Act, which was enacted on March 27, 2020, net operating losses arising in tax years beginning after December 31, 2017, and before January 1, 2021 can be carried back five tax years preceding the tax year in which the loss originated. During the prior year, the Company utilized net operating losses acquired as a part of the 2018 WashingtonFirst acquisition. Following the passage of the CARES Act, the Company carried back WashingtonFirst's 2018 net operating loss to tax years 2013 through 2015. As a result, the Company recorded a tax benefit of $1.8 million for 2020 due to the federal statutory rates for the 2013, 2014 and 2015 tax years being higher than the 2018 tax year.

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NET INCOME PER COMMON SHARE

12 Months Ended

Dec. 31, 2021

Earnings Per Share [Abstract]

NET INCOME PER COMMON SHARE

NET INCOME PER COMMON SHARE

The calculation of net income per common share for the years ended December 31 is presented in the following table:

(Dollars and amounts in thousands, except per share data)	2021		2020		2019
Net income	$	235,107	$	96,953	$	116,433
Less: Distributed and undistributed earnings allocated to participating securities	(1,508)		(783)		(762)
Net income attributable to common shareholders	$	233,599	$	96,170	$	115,671
Total weighted average outstanding shares	46,995		44,312		35,797
Less: Weighted average participating securities	(304)		(365)		(235)
Basic weighted average common shares	46,691		43,947		35,562
Dilutive weighted average common stock equivalents	208		185		56
Diluted weighted average common shares	46,899		44,132		35,618
Basic net income per common share	$	5.00	$	2.19	$	3.25
Diluted net income per common share	$	4.98	$	2.18	$	3.25
Anti-dilutive shares	—		17		9

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ACCUMULATED OTHER COMPREHENSIVE INCOME/ (LOSS)

12 Months Ended

Dec. 31, 2021

Equity [Abstract]

ACCUMULATED OTHER COMPREHENSIVE INCOME/ (LOSS)

ACCUMULATED OTHER COMPREHENSIVE INCOME/ (LOSS)Comprehensive income/ (loss) is defined as net income plus transactions and other occurrences that are the result of non-owner changes in equity. For financial statements presented for the Company, non-owner changes are comprised of unrealized gains or losses on available-for-sale debt securities and any pension liability adjustments and do not have an impact on the Company’s net income. Realized gains and losses on available-for-sale debt securities and the amortization of net periodic benefit cost impact the Company's net income as discussed in the tables on the following page.

The following table presents the activity in net accumulated other comprehensive income/ (loss) for the periods indicated:

(In thousands)	Unrealized Gains/ (Losses) on Investments Available-for-Sale		Defined Benefit Pension Plan		Total
Balance at January 1, 2019	$	(6,630)	$	(9,124)	$	(15,754)
Period change, net of tax	10,630		792		11,422
Balance at December 31, 2019	4,000		(8,332)		(4,332)
Period change, net of tax	24,175		(1,138)		23,037
Balance at December 31, 2020	28,175		(9,470)		18,705
Period change, net of tax	(28,511)		1,267		(27,244)
Balance at December 31, 2021	$	(336)	$	(8,203)	$	(8,539)

The following table provides the information on the reclassification adjustments out of accumulated other comprehensive income/ (loss) for the periods indicated:

	Year Ended December 31,
(In thousands)	2021		2020		2019
Unrealized gains/ (losses) on investments available-for-sale:
Affected line item in the Consolidated Statements of Income:
Investment securities gains	$	212	$	467	$	77
Income before taxes	212		467		77
Tax expense	(54)		(120)		(20)
Net income	$	158	$	347	$	57
Amortization of defined benefit pension plan items:
Affected line item in the Consolidated Statements of Income:
Recognized actuarial loss (1)	$	(909)	$	(874)	$	(1,059)
Settlement charge (1)	(560)		—		—
Income before taxes	(1,469)		(874)		(1,059)
Tax benefit	376		223		277
Net loss	$	(1,093)	$	(651)	$	(782)

(1)This amount is included in the computation of net periodic benefit cost, see Note 14.

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DERIVATIVES

12 Months Ended

Dec. 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVES

DERIVATIVESThe Company enters into interest rate swaps to facilitate customer transactions and meet their financing needs. These swaps qualify as derivatives, but are not designated as hedging instruments. Interest rate swap contracts involve the risk of dealing with counterparties and their ability to meet contractual terms. When the fair value of a derivative instrument contract is positive, this generally indicates that the counterparty or customer owes the Company, and results in credit risk to the Company. When the fair value of a derivative instrument contract is negative, the Company owes the customer or counterparty and therefore, has no credit risk. The swap positions are offset to minimize the potential impact on the Company’s financial statements. Credit risk exists if the borrower’s collateral or financial condition indicates that the underlying collateral or financial condition of the borrower makes it probable that amounts due will be uncollectible. Any amounts due to the Company will be expected to be collected from the borrower. Management reviews this credit exposure on a quarterly basis. At December 31, 2021 and 2020, all loans associated with the swap agreements were determined to be “pass” rated credits as provided by regulatory guidance and therefore no component of credit loss was factored into the valuation of the swaps.

A summary of the Company’s interest rate swaps at December 31 for the years indicated is included in the following table:

	2021
(Dollars in thousands)	Notional Amount		Estimated Fair Value		Years to Maturity	Receive Rate		Pay Rate
Interest rate swap agreements:
Pay fixed/receive variable swaps	$	198,126	$	(5,880)	8.7 years	2.21	%	3.73	%
Pay variable/receive fixed swaps	198,126		5,880		8.7 years	3.73	%	2.21	%
Total swaps	$	396,252	$	—	8.7 years	2.97	%	2.97	%

	2020
(Dollars in thousands)	Notional Amount		Estimated Fair Value		Years to Maturity	Receive Rate		Pay Rate
Interest rate swap agreements:
Pay fixed/receive variable swaps	$	160,261	$	(9,183)	8.7 years	2.39	%	3.72	%
Pay variable/receive fixed swaps	160,261		9,183		8.7 years	3.72	%	2.39	%
Total swaps	$	320,522	$	—	8.7 years	3.06	%	3.06	%

The estimated fair value of the swaps at December 31 for the periods indicated in the table above were recorded in other assets and other liabilities in the Consolidated Statements of Financial Condition. The associated net gains and losses on the swaps are recorded in other non-interest income in the Consolidated Statement of Income.

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FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK

12 Months Ended

Dec. 31, 2021

Condensed Financial Information Disclosure [Abstract]

FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK

FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK

In the normal course of business, the Company has various outstanding credit commitments that are not reflected in the financial statements. These commitments are made to satisfy the financing needs of the Company's clients. The associated credit risk is controlled by subjecting such activity to the same credit and quality controls as exist for the Company's lending and investing activities. The commitments involve diverse business and consumer customers and are generally well collateralized. Collateral held varies, but may include residential real estate, commercial real estate, property and equipment, inventory and accounts receivable. Commitments do not necessarily represent future cash requirements as a portion of the commitments have some reduced likelihood of being exercised. Additionally, many of the commitments are subject to annual reviews, material change clauses or requirements for inspections prior to draw funding that could result in a curtailment of the funding commitments.

A summary of the financial instruments with off-balance sheet credit risk is as follows at December 31 for the years indicated:

(In thousands)	2021		2020
Commercial real estate development and construction	$	621,725	$	871,290
Residential real estate-development and construction	885,806		94,096
Real estate-residential mortgage	54,072		335,288
Lines of credit, principally home equity and business lines	2,096,874		1,947,706
Standby letters of credit	70,642		71,777
Total commitments to extend credit and available credit lines	$	3,729,119	$	3,320,157

As of December 31, 2021, the total reserve for unfunded commitments was $0.3 million as compared to $1.6 million at December 31, 2020, and is accounted for in other liabilities in the Consolidated Statements of Financial Condition. See Note 1 for more information on the accounting policy for the allowance for unfunded commitments.

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LITIGATION	12 Months Ended
	Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
LITIGATION	LITIGATIONThe Company and its subsidiaries are subject in the ordinary course of business to various pending or threatened legal proceedings in which claims for monetary damages are asserted. After consultation with legal counsel, management does not anticipate that the ultimate liability, if any, arising out of currently pending legal proceedings will have a material adverse effect on the Company’s financial condition, operating results or liquidity.

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FAIR VALUE

12 Months Ended

Dec. 31, 2021

Fair Value Disclosures [Abstract]

FAIR VALUE

FAIR VALUE

GAAP provides entities the option to measure eligible financial assets, financial liabilities and commitments at fair value (i.e. the fair value option), on an instrument-by-instrument basis, that are otherwise not permitted to be accounted for at fair value under other accounting standards. The election to use the fair value option is available when an entity first recognizes a financial asset or financial liability or upon entering into a commitment. Subsequent changes in fair value must be recorded in earnings. The Company applies the fair value option on residential mortgage loans held for sale. The fair value option on residential mortgage loans allows the recognition of gains on sale of mortgage loans to more accurately reflect the timing and economics of the transaction.

The standard for fair value measurement establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below.

Basis of Fair Value Measurement:

Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

Level 2 - Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability.

Level 3 - Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e. supported by little or no market activity).

A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement.

Changes to interest rates may result in changes in the cash flows due to prepayments or extinguishments. Accordingly, this could result in higher or lower measurements of the fair values.

Assets and Liabilities

Residential mortgage loans held for sale

Residential mortgage loans held for sale are valued based on quotations from the secondary market for similar instruments and are classified as Level 2 in the fair value hierarchy.

Investments available-for-sale

U.S. treasuries and government agencies securities and mortgage-backed and asset-backed securities

Valuations are based on active market data and use of evaluated broker pricing models that vary based by asset class and includes available trade, bid, and other market information. Generally, the methodology includes broker quotes, proprietary models, descriptive terms, and databases coupled with extensive quality control programs. Quality control evaluation processes use available market, credit and deal level information to support the evaluation of the security. Additionally, proprietary models and pricing systems, mathematical tools, actual transacted prices, integration of market developments and experienced evaluators are used to determine the value of a security based on a hierarchy of market information regarding a security or securities with similar characteristics. The Company does not adjust the quoted price for such securities. Such instruments are classified within Level 2 in the fair value hierarchy.

State and municipal securities

The Company primarily uses prices obtained from third-party pricing services to determine the fair value of state and municipal securities. The Company independently evaluates and corroborates the fair value received from pricing services through various methods and techniques, including references to dealer or other market quotes, by reviewing valuations of comparable instruments, and by comparing the prices realized on the sale of similar securities. Such securities are classified within Level 2 in the fair value hierarchy.

Corporate debt

The fair value of corporate debt is determined by utilizing a discounted cash flow valuation technique employed by a third-party valuation specialist. The third-party specialist uses assumptions related to yield, prepayment speed, conditional default rates and loss severity based on certain factors such as, credit worthiness of the counterparty, prevailing market rates, and analysis of similar securities. The Company evaluates the fair values provided by the third-party specialist for reasonableness and classifies them as level 3 in the fair value hierarchy.

Interest rate swap agreements

Interest rate swap agreements are measured by alternative pricing sources using a discounted cash flow method that incorporates current market interest rates. Based on the complex nature of interest rate swap agreements, the markets these instruments trade in are not as efficient and are less liquid than that of the more mature Level 1 markets. These characteristics classify interest rate swap agreements as Level 2 in the fair value hierarchy.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following tables set forth the Company’s financial assets and liabilities at the December 31 for the years indicated that were accounted for or disclosed at fair value. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement:

	2021
(In thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Assets
Residential mortgage loans held for sale (1)	$	—	$	39,409	$	—	$	39,409
Investments available-for-sale:
U.S. government agencies	—		68,539		—		68,539
State and municipal	—		326,402		—		326,402
Mortgage-backed and asset-backed	—		1,070,955		—		1,070,955
Corporate debt	—		—		—		—
Total available-for-sale securities	—		1,465,896		—		1,465,896
Interest rate swap agreements	—		5,880		—		5,880
Total assets	$	—	$	1,511,185	$	—	$	1,511,185
Liabilities
Interest rate swap agreements	$	—	$	(5,880)	$	—	$	(5,880)
Total liabilities	$	—	$	(5,880)	$	—	$	(5,880)

(1)The outstanding principal balance for residential loans held for sale as of December 31, 2021 was $38.2 million.

	2020
(In thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Assets
Residential mortgage loans held for sale (1)	$	—	$	78,294	$	—	$	78,294
Investments available-for-sale:
U.S. government agencies	—		43,297		—		43,297
State and municipal	—		390,367		—		390,367
Mortgage-backed and asset-backed	—		904,432		—		904,432
Corporate debt	—		—		9,925		9,925
Total available-for-sale securities	—		1,338,096		9,925		1,348,021
Interest rate swap agreements	—		9,183		—		9,183
Total assets	$	—	$	1,425,573	$	9,925	$	1,435,498
Liabilities
Interest rate swap agreements	$	—	$	(9,183)	$	—	$	(9,183)
Total liabilities	$	—	$	(9,183)	$	—	$	(9,183)

(1)The outstanding principal balance for residential loans held for sale as of December 31, 2020 was $75.5 million.

The fair value of investments transferred or that are purchased and placed in Level 3 is estimated by discounting the expected future cash flows using the current rates for investments with similar credit ratings and similar remaining maturities. Expected cash flows were projected based on contractual cash flows.

The following table provides activity of assets reported as Level 3 for the period indicated:

	Significant
	Unobservable
	Inputs
(In thousands)	(Level 3)
Investments available-for-sale:
Balance at January 1, 2021	$	9,925
Transfer into Level 3 assets	—
Additions of Level 3 assets	—
Sales of Level 3 assets	(9,925)
Balance at December 31, 2021	$	—

Assets Measured at Fair Value on a Non-recurring Basis

The following tables set forth the Company’s financial assets subject to fair value adjustments on a non-recurring basis at December 31 for the year indicated that are valued at the lower of cost or market. Assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement:

	2021
(In thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total		Total Losses
Loans (1)	$	—	$	—	$	404	$	404	$	(1,353)
Other real estate owned	—		—		1,034		1,034		(81)
Total	$	—	$	—	$	1,438	$	1,438	$	(1,434)

(1)Amounts represent the fair value of collateral for collateral dependent non-accrual loans allocated to the allowance for credit losses. Fair values are determined using actual market prices (Level 2), independent third party valuations and borrower records, discounted as appropriate (Level 3).

	2020
(In thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total		Total Losses
Loans (1)	$	—	$	—	$	13,901	$	13,901	$	(11,326)
Other real estate owned	—		—		1,455		1,455		(286)
Total	$	—	$	—	$	15,356	$	15,356	$	(11,612)

(1)Amounts represent the fair value of collateral for collateral dependent non-accrual loans allocated to the allowance for credit losses. Fair values are determined using actual market prices (Level 2), independent third party valuations and borrower records, discounted as appropriate (Level 3).

At December 31, 2021, loans totaling $33.5 million were written down to fair value of $26.9 million as a result of individual credit loss allowances of $6.6 million associated with the collateral dependent non-accrual loans which was included in the allowance for credit losses. Loans totaling $97.7 million were written down to fair value of $86.3 million at December 31, 2020 as a result of individual credit loss allowances of $11.4 million associated with the collateral dependent non-accrual loans.

Fair value of the collateral dependent loans is measured based on the loan’s observable market price or the fair value of the collateral (less estimated selling costs). Collateral may be real estate and/or business assets such as equipment, inventory and/or accounts receivable. The value of business equipment, inventory and accounts receivable collateral is based on net book value on the business’ financial statements and, if necessary, discounted based on management’s review and analysis. Appraised and reported values may be discounted based on management’s historical experience, changes in market conditions from the time of valuation, and/or management’s expertise and knowledge of the client and client’s business. Collateral dependent loans are reviewed and evaluated on at least a quarterly basis for additional individual reserve and adjusted accordingly, based on the factors identified above.

OREO is adjusted to fair value upon transfer of the loans to OREO. Subsequently, OREO is carried at the lower of carrying value or fair value, less cost of disposal. The estimated fair value for OREO included in Level 3 is determined by independent market based appraisals and other available market information, less cost of disposal, that may be reduced further based on market expectations or an executed sales agreement. If the fair value of the collateral deteriorates subsequent to initial recognition, the Company records the OREO as a non-recurring Level 3 adjustment. Valuation techniques are consistent with those techniques applied in prior periods.

Fair Value of Financial Instruments

The Company discloses fair value information, based on the exit price notion, of financial instruments that are not measured at fair value in the financial statements. Fair value is the amount at which a financial instrument could be exchanged in a current transaction between willing parties, other than in a forced sale or liquidation, and is best evidenced by a quoted market price, if one exists.

Quoted market prices, where available, are shown as estimates of fair market values. Because no quoted market prices are available for a significant portion of the Company's financial instruments, the fair value of such instruments has been derived based on the amount and timing of future cash flows and estimated discount rates based on observable inputs (“Level 2”) or unobservable inputs (“Level 3”).

Present value techniques used in estimating the fair value of many of the Company's financial instruments are significantly affected by the assumptions used. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate cash settlement of the instrument. Additionally, the accompanying estimates of fair values are only representative of the fair values of the individual financial assets and liabilities, and should not be considered an indication of the fair value of the Company. Management utilizes internal models used in asset liability management to determine the fair values disclosed below.

The carrying amounts and fair values of the Company’s financial instruments at December 31 for the year indicated are presented in the following table:

					Fair Value Measurements
	2021				Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
(In thousands)	Carrying Amount		Estimated Fair Value
Financial assets:
Cash and cash equivalents	$	420,020	$	420,020	$	420,020	$	—	$	—
Residential mortgage loans held for sale	39,409		39,409		—		39,409		—
Investments available-for-sale	1,465,896		1,465,896		—		1,465,896		—
Equity securities	41,166		41,166		41,166		—		—
Loans, net of allowance	9,857,946		9,964,924		—		—		9,964,924
Interest rate swap agreements	5,880		5,880		—		5,880		—
Accrued interest receivable	34,349		34,349		34,349		—		—
Bank owned life insurance	147,528		147,528		—		147,528		—
Financial liabilities:
Time deposits	$	1,290,862	$	1,292,598	$	—	$	1,292,598	$	—
Other deposits	9,333,869		9,333,869		9,333,869		—		—
Securities sold under retail repurchase agreements and
federal funds purchased	141,086		141,086		—		141,086		—
Advances from FHLB	—		—		—		—		—
Subordinated debt	172,712		175,780		—		—		175,780
Interest rate swap agreements	5,880		5,880		—		5,880		—
Accrued interest payable	1,516		1,516		1,516		—		—

					Fair Value Measurements
	2020				Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
(In thousands)	Carrying Amount		Estimated Fair Value
Financial assets:
Cash and cash equivalents	$	297,003	$	297,003	$	297,003	$	—	$	—
Residential mortgage loans held for sale	78,294		78,294		—		78,294		—
Investments available-for-sale	1,348,021		1,348,021		—		1,338,096		9,925
Equity securities	65,760		65,760		65,760		—		—
Loans, net of allowance	10,235,142		10,336,355		—		—		10,336,355
Interest rate swap agreements	9,183		9,183		—		9,183		—
Accrued interest receivable	46,431		46,431		46,431		—		—
Bank owned life insurance	126,887		126,887		—		126,887		—
Financial liabilities:
Time deposits	$	1,657,662	$	1,674,112	$	—	$	1,674,112	$	—
Other deposits	8,375,407		8,375,407		8,375,407		—		—
Securities sold under retail repurchase agreements and
federal funds purchased	543,157		543,157		—		543,157		—
Advances from FHLB	379,075		390,593		—		390,593		—
Subordinated debt	227,088		227,512		—		—		227,512
Interest rate swap agreements	9,183		9,183		—		9,183		—
Accrued interest payable	3,254		3,254		3,254		—		—

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PARENT COMPANY FINANCIAL INFORMATION

12 Months Ended

Dec. 31, 2021

Condensed Financial Information Disclosure [Abstract]

PARENT COMPANY FINANCIAL INFORMATION

PARENT COMPANY FINANCIAL INFORMATION

Financial statements for Sandy Spring Bancorp, Inc. (Parent Only) for the periods indicated are presented in the following tables:

Statements of Condition

	December 31,
(In thousands)	2021		2020
Assets:
Cash and cash equivalents	$	69,038	$	63,943
Investments available-for-sale (at fair value)	—		9,925
Equity securities	568		568
Investment in subsidiary	1,620,432		1,589,483
Goodwill	1,292		1,292
Other assets	2,255		2,684
Total assets	$	1,693,585	$	1,667,895
Liabilities:
Subordinated debt	$	172,712	$	196,454
Accrued expenses and other liabilities	1,194		1,486
Total liabilities	173,906		197,940
Stockholders’ Equity:
Common stock	45,119		47,057
Additional paid in capital	751,072		846,922
Retained earnings	732,027		557,271
Accumulated other comprehensive income/ (loss)	(8,539)		18,705
Total stockholders’ equity	1,519,679		1,469,955
Total liabilities and stockholders’ equity	$	1,693,585	$	1,667,895

Statements of Income

	Year Ended December 31,
(In thousands)	2021		2020		2019
Income:
Cash dividends from subsidiary	$	189,172	$	74,410	$	42,625
Other income	434		932		1,093
Total income	189,606		75,342		43,718
Expenses:
Interest	6,765		9,028		3,141
Other expenses	1,592		1,505		1,507
Total expenses	8,357		10,533		4,648
Income before income taxes and equity in undistributed income of subsidiary	181,249		64,809		39,070
Income tax benefit	(1,563)		(1,988)		(734)
Income before equity in undistributed income of subsidiary	182,812		66,797		39,804
Equity in undistributed income of subsidiary	52,295		30,156		76,629
Net income	$	235,107	$	96,953	$	116,433

Statements of Cash Flows

	Year Ended December 31,
(In thousands)	2021		2020		2019
Cash Flows from Operating Activities:
Net income	$	235,107	$	96,953	$	116,433
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed income-subsidiary	(52,295)		(30,156)		(76,629)
Share based compensation expense	5,299		3,850		3,042
Tax benefit from stock options exercised	—		5		7
Other-net	4,133		(9,732)		—
Net cash provided by operating activities	192,244		60,920		42,853
Cash Flows from Investing Activities:
Proceeds from sales of investment available-for-sale	9,099		310		—
Investment in subsidiary	—		—		(85,000)
Net cash provided by/ (used in) investing activities	9,099		310		(85,000)
Cash Flows from Financing Activities:
Retirement of subordinated debt	(32,810)		(10,310)		—
Proceeds from issuance of subordinated debt	—		—		175,000
Proceeds from issuance of common stock	5,758		1,997		1,433
Stock tendered for payment of withholding taxes	(1,577)		(458)		(703)
Repurchase of common stock	(107,268)		(25,702)		(24,284)
Dividends paid	(60,351)		(53,175)		(42,272)
Net cash provided by/ (used in) financing activities	(196,248)		(87,648)		109,174
Net increase/ (decrease) in cash and cash equivalents	5,095		(26,418)		67,027
Cash and cash equivalents at beginning of year	63,943		90,361		23,334
Cash and cash equivalents at end of year	$	69,038	$	63,943	$	90,361

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REGULATORY MATTERS

12 Months Ended

Dec. 31, 2021

Banking and Thrift, Interest [Abstract]

REGULATORY MATTERS

REGULATORY MATTERS

The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company's and the Bank's financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank's assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Company and the Bank's capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.

Quantitative measures established and defined by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios of Total, Tier 1 and Common Equity Tier 1 capital to risk-weighted assets, and of Tier 1 capital to average assets. As of December 31, 2021 and 2020, the capital levels of the Company and the Bank substantially exceeded all applicable capital adequacy requirements.

As of December 31, 2021, the most recent notification from the Bank’s primary regulator categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized the Bank must maintain minimum Total risk-based, Tier 1 risk-based, Common Equity Tier 1 risk-based, and Tier 1 leverage ratios as set forth in the following table. There are no conditions or events since that notification that management believes have changed the Bank's category.

The Company's and the Bank's actual capital amounts and ratios at December 31 for the years indicated are presented in the following table:

	Actual				For Capital Adequacy Purposes				To be Well Capitalized Under Prompt Corrective Action Provisions
(Dollars in thousands)	Amount		Ratio		Amount		Ratio		Amount		Ratio
As of December 31, 2021
Tier 1 Leverage:
Company	$	1,149,694	9.26	%	$	496,520	4.00	%	N/A		N/A
Sandy Spring Bank	$	1,251,739	10.09	%	$	496,171	4.00	%	$	620,214	5.00	%
Common Equity Tier 1 Capital to risk-
weighted assets:
Company	$	1,149,694	11.91	%	$	434,466	4.50	%	N/A		N/A
Sandy Spring Bank	$	1,251,739	12.98	%	$	433,889	4.50	%	$	626,729	6.50	%
Tier 1 Capital to risk-weighted assets:
Company	$	1,149,694	11.91	%	$	579,288	6.00	%	N/A		N/A
Sandy Spring Bank	$	1,251,739	12.98	%	$	578,519	6.00	%	$	771,358	8.00	%
Total Capital to risk-weighted assets:
Company	$	1,408,808	14.59	%	$	772,384	8.00	%	N/A		N/A
Sandy Spring Bank	$	1,335,853	13.85	%	$	771,358	8.00	%	$	964,198	10.00	%
As of December 31, 2020
Tier 1 Leverage:
Company	$	1,078,213	8.92	%	$	483,619	4.00	%	N/A		N/A
Sandy Spring Bank	$	1,199,570	9.93	%	$	483,175	4.00	%	$	603,969	5.00	%
Common Equity Tier 1 Capital to risk-
weighted assets:
Company	$	1,078,213	10.58	%	$	458,612	4.50	%	N/A		N/A
Sandy Spring Bank	$	1,199,570	11.79	%	$	457,920	4.50	%	$	661,441	6.50	%
Tier 1 Capital to risk-weighted assets:
Company	$	1,078,213	10.58	%	$	611,483	6.00	%	N/A		N/A
Sandy Spring Bank	$	1,199,570	11.79	%	$	610,561	6.00	%	$	814,081	8.00	%
Total Capital to risk-weighted assets:
Company	$	1,419,973	13.93	%	$	815,311	8.00	%	N/A		N/A
Sandy Spring Bank	$	1,347,102	13.24	%	$	814,081	8.00	%	$	1,017,601	10.00	%

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SEGMENT REPORTING

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

SEGMENT REPORTING

SEGMENT REPORTING

Currently, the Company conducts business in three operating segments: Community Banking, Insurance and Investment Management. Each of the operating segments is a strategic business unit that offers different products and services. The Insurance and Investment Management segments were businesses that were acquired in separate transactions where management of the acquired business was retained. The accounting policies of the segments are the same as those of the Company. However, the segment data reflects inter-segment transactions and balances.

The Community Banking segment is conducted through Sandy Spring Bank and involves delivering a broad range of financial products and services, including various loan and deposit products, to both individuals and businesses. Parent company income and assets are included in the Community Banking segment, as the majority of parent company functions are related to this segment. Beginning on April 1, 2020, the Community Banking segment includes the impact from the Revere acquisition. Major revenue sources include net interest income, gains on sales of mortgage loans, trust income fees and service charges on deposit accounts. Expenses include personnel, occupancy, marketing, equipment and other expenses. Non-cash charges associated with amortization of intangibles related to the acquired entities in the Community Banking segment totaled $4.7 million, $4.3 million and $1.7 million for the years ended December 31, 2021, December 31, 2020 and December 31, 2019, respectively.

The Insurance segment is conducted through Sandy Spring Insurance, a subsidiary of the Bank. Sandy Spring Insurance operates Sandy Spring Insurance, a general insurance agency located in Annapolis, Maryland, and Neff and Associates, located in Ocean City, Maryland. Major sources of revenue are insurance commissions from commercial lines, personal lines, and medical liability lines. Expenses include personnel, occupancy, support charges and other expenses. Non-cash charges associated with amortization of intangibles related to the acquired entities were immaterial for each of the years ended December 31, 2021, 2020 and 2019.

The Investment Management segment is conducted through West Financial and RPJ, subsidiaries of the Bank. These asset management and financial planning firms, located in McLean, Virginia and Falls Church, Virginia, respectively, provide comprehensive investment management and financial planning to individuals, families, small businesses and associations, including cash flow analysis, investment review, tax planning, retirement planning, insurance analysis and estate planning. West Financial and RPJ had approximately $4.1 billion in combined assets under management. Major revenue sources include non-interest income earned on the above services. Expenses include personnel, occupancy, support charges and other expenses. Non-cash charges associated with amortization of intangibles related to the acquired entities were $1.9 million, $1.9 million, and $0.1 million for the years ended December 31, 2021, December 31, 2020 and December 31, 2019, respectively.

Information for the operating segments and reconciliation of the information to the consolidated financial statements for the years ended December 31 is presented in the following tables:

	2021
(In thousands)	Community Banking		Insurance		Investment Management		Inter-Segment Elimination		Total
Interest income	$	450,284	$	2	$	10	$	(12)	$	450,284
Interest expense	25,778		—		—		(12)		25,766
Provision for credit losses	(45,556)		—		—		—		(45,556)
Non-interest income	80,077		7,011		22,378		(7,411)		102,055
Non-interest expenses	240,996		5,869		14,473		(868)		260,470
Income before income taxes	309,143		1,144		7,915		(6,543)		311,659
Income tax expense	74,036		339		2,177		—		76,552
Net income	$	235,107	$	805	$	5,738	$	(6,543)	$	235,107
Assets	$	12,590,176	$	9,110	$	59,099	$	(67,659)	$	12,590,726
	2020
(In thousands)	Community Banking		Insurance		Investment Management		Inter-Segment Elimination		Total
Interest income	$	423,560	$	6	$	7	$	(13)	$	423,560
Interest expense	60,414		—		—		(13)		60,401
Provision for credit losses	85,669		—		—		—		85,669
Non-interest income	78,940		6,810		17,831		(865)		102,716
Non-interest expenses	237,910		5,686		13,051		(865)		255,782
Income before income taxes	118,507		1,130		4,787		—		124,424
Income tax expense	25,907		313		1,251		—		27,471
Net income	$	92,600	$	817	$	3,536	$	—	$	96,953
Assets	$	12,800,537	$	11,335	$	57,768	$	(71,211)	$	12,798,429
	2019
(In thousands)	Community Banking		Insurance		Investment Management		Inter-Segment Elimination		Total
Interest income	$	347,867	$	26	$	13	$	(37)	$	347,869
Interest expense	82,598		—		—		(37)		82,561
Provision for credit losses	4,684		—		—		—		4,684
Non-interest income	55,042		6,621		10,326		(667)		71,322
Non-interest expenses	166,802		5,731		7,219		(667)		179,085
Income before income taxes	148,825		916		3,120		—		152,861
Income tax expense	35,350		258		820		—		36,428
Net income	$	113,475	$	658	$	2,300	$	—	$	116,433
Assets	$	8,624,590	$	10,340	$	16,424	$	(22,352)	$	8,629,002

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SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Nature of Operations

Nature of Operations

Sandy Spring Bancorp, Inc. ("Sandy Spring" or, together with its subsidiaries, the "Company"), a Maryland corporation, is the bank holding company for Sandy Spring Bank (the “Bank”), which conducts a full-service commercial banking, mortgage banking and trust business. Services to individuals and businesses include accepting deposits, extending credit to buy real estate or equipment, consumer and commercial loans and lines of credit, general insurance, personal trust, and investment and wealth management services. The Company operates in central Maryland, Northern Virginia, and the greater Washington D.C. market. The Company offers investment and wealth management services through the Bank’s subsidiaries, West Financial Services ("West Financial") and Rembert Pendleton Jackson ("RPJ"). Insurance products are available to clients through Sandy Spring Insurance Corporation ("Sandy Spring Insurance"), and Neff & Associates, which are agencies of Sandy Spring Insurance.

Basis of Presentation

Basis of Presentation

The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (“GAAP”) and prevailing practices within the financial services industry for financial information. The following summary of significant accounting policies of the Company is presented to assist the reader in understanding the financial and other data presented in this report. The Company has evaluated subsequent events through the date of the issuance of its financial statements.

Principles of Consolidation

Principles of Consolidation

The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, Sandy Spring Bank and its subsidiaries, Sandy Spring Insurance, West Financial and RPJ. Consolidation has resulted in the elimination of all significant intercompany accounts and transactions. See Note 25 for more information on the Company's segments and consolidation.

Use of Estimates

Use of Estimates

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, in addition to affecting the reported amounts of revenues earned and expenses incurred during the reporting period. Actual results could differ from those estimates. Estimates that could change significantly relate to the provision for credit losses and the related allowance, potential impairment of goodwill or other intangible assets, valuation of investment securities and the determination of whether available-for-sale debt securities with fair values less than amortized costs are impaired and require an allowance for credit losses, valuation of other real estate owned, valuation of share based compensation, the assessment that a liability should be recognized with respect to any matters under litigation, the calculation of current and deferred income taxes, and the actuarial projections related to pension expense and the related liability.

Assets Under Management

Assets Under Management

Assets held for others under fiduciary and agency relationships are not assets of the Company or its subsidiaries and are not included in the accompanying Consolidated Statements of Condition. Trust department income and investment management fees are presented on an accrual basis.

Cash Flows

Cash Flows

For purposes of reporting cash flows, cash and cash equivalents include cash and due from banks, federal funds sold and interest-bearing deposits with banks (items with an original maturity of three months or less).

Revenue from Contract with Customers

Revenue from Contracts with Customers

The Company’s revenue includes net interest income on financial instruments and non-interest income. Specific categories of revenue are presented in the Consolidated Statements of Income. Most of the Company’s revenue is not within the scope of Accounting Standard Codification (“ASC”) 606 – Revenue from Contracts with Customers. For revenue within the scope of ASC 606, the Company provides services to customers and has related performance obligations. The revenue from such services is recognized upon satisfaction of all contractual performance obligations. The following discusses key revenue streams within the scope of revenue recognition guidance.

Wealth Management Income

West Financial and RPJ provide comprehensive investment management and financial planning services. Wealth management income is comprised of income for providing trust, estate and investment management services. Trust services include acting as a trustee for corporate or personal trusts. Investment management services include investment management, record-keeping and reporting of security portfolios. Fees for these services are recognized based on a contractually-agreed fixed percentage applied to net assets under management at the end of each reporting period. The Company does not charge/recognize any performance-based fees.

Insurance Agency Commissions

Sandy Spring Insurance, a subsidiary of the Bank, performs the function of an insurance intermediary by introducing the policyholder and insurer and is compensated by a commission fee for placement of an insurance policy. Sandy Spring Insurance does not provide any captive management services or any claim handling services. Commission fees are set as a percentage of the premium for the insurance policy for which Sandy Spring Insurance is a producer. Sandy Spring Insurance recognizes revenue when the insurance policy has been contractually agreed to by the insurer and policyholder (at transaction date).

Service Charges on Deposit Accounts

Service charges on deposit accounts are earned on depository accounts for consumer and commercial account holders and include fees for account and overdraft services. Account services include fees for event-driven services and periodic account maintenance activities. An obligation for event-driven services is satisfied at the time of the event when service is delivered and revenue recognized as earned. Obligation for maintenance activities is satisfied over the course of each month and revenue is recognized at month end. The overdraft services obligation is satisfied at the time of the overdraft and revenue is recognized as earned.

Residential Mortgage Loans Held For Sale

Residential Mortgage Loans Held for Sale

The Company engages in sales of residential mortgage loans originated by the Bank. Loans held for sale are carried at fair value. Fair value is derived from secondary market quotations for similar instruments. The Company measures residential mortgage loans at fair value when the Company first recognizes the loan (i.e., the fair value option). Changes in fair value of these loans are recorded in earnings as a component of mortgage banking activities in non-interest income in the Consolidated Statements of Income. The Company's current practice is to sell the majority of such loans on a servicing released basis. Any retained servicing assets are amortized in proportion to their net servicing fee income over the life of the respective loans. Servicing assets are evaluated for impairment on a periodic basis.

Investments Available-for-sale

Investments Available-for-Sale

Debt securities not classified as held-to-maturity or trading are classified as securities available-for-sale. Securities available-for-sale are acquired as part of the Company's asset/liability management strategy and may be sold in response to changes in interest rates, loan demand, changes in prepayment risk or other factors. Securities available-for-sale are carried at fair value, with unrealized gains or losses based on the difference between amortized cost and fair value, reported net of deferred tax, as accumulated other comprehensive income/ (loss), a separate component of stockholders' equity. The carrying values of securities available-for-sale are adjusted for premium amortization and discount accretion. Premium is amortized to the earliest call date and discount accreted to the maturity date using the effective interest method. Realized gains and losses on security sales or maturities, using the specific identification method, are included as a separate component of non-interest income. Related interest and dividends are included in interest income. Declines in the fair value of individual available-for-sale securities below their amortized cost due to credit-related factors are recognized as an allowance for credit losses. Credit-related factors affecting the determination of whether impairment has occurred include a downgrading of the security below investment grade by a rating agency or due to potential default, a significant deterioration in the financial condition of the issuer, increase in entity-specific credit spreads. Additionally, on any available-for-sale securities with unrealized losses, the Company evaluates its intent and ability to hold the investment for a period of time sufficient to allow for any anticipated recovery in fair value.

Equity Securities

Equity Securities

Equity securities include Federal Reserve Bank stock, Federal Home Loan Bank of Atlanta ("FHLB") stock and other equities that are considered restricted as to marketability and recorded at cost. As these securities do not have readily available market values, they are carried at cost and adjusted for any necessary impairments each reporting period.

Loan Financing Receivables

Loan Financing Receivables

The Company’s financing receivables consist primarily of loans that are stated at their principal balance outstanding, net of any unearned income, acquisition fair value marks and deferred loan origination fees and costs. Interest income on loans is accrued at the contractual rate based on the principal balance outstanding. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the interest method.

Loans are considered past due or delinquent when the principal or interest due in accordance with the contractual terms of the loan agreement or any portion thereof remains unpaid after the due date of the scheduled payment. Immaterial shortfalls in payment amounts do not necessarily result in a loan being considered delinquent or past due. If any payments are past due and subsequent payments are resumed without payment of the delinquent amount, the loan shall continue to be considered past due. Whenever any loan is reported delinquent on a principal or interest payment or portion thereof, the amount reported as delinquent is the outstanding principal balance of the loan.

Loans, except for consumer installment loans, are placed into non-accrual status when any portion of the loan principal or interest becomes 90 days past due. Management may determine that certain circumstances warrant earlier discontinuance of interest accruals on specific loans if an evaluation of other relevant factors (such as bankruptcy, interruption of cash flows, etc.) indicates collection of amounts contractually due is unlikely. These loans are considered, collectively, to be non-performing loans. Consumer installment loans that are not secured by real estate are not placed on non-accrual, but are charged down to their net realizable value when they are four months past due. Loans designated as non-accrual have all previously accrued but unpaid interest reversed. Interest income is not recognized on non-accrual loans. All payments received on non-accrual loans are applied using a cost-recovery method to reduce the outstanding principal balance until the loan returns to accrual status. Loans may be returned to accrual status when all principal and interest amounts contractually due are brought current and future payments are reasonably assured.

Loans considered to be TDRs are loans that have their terms restructured (e.g., interest rates, loan maturity date, payment and amortization period, etc.) in circumstances that provide payment relief to a borrower experiencing financial difficulty. All restructured collateral-dependent loans are individually assessed for allowance for credit losses and may either be in accruing or non-accruing status. Non-accruing restructured loans may return to accruing status provided doubt has been removed concerning the collectability of principal and interest as evidenced by a sufficient period of payment performance in accordance with the restructured terms. Loans may be removed from the restructured category if the borrower is no longer experiencing financial difficulty, a re-underwriting event took place, and the revised loan terms of the subsequent restructuring agreement are considered to be consistent with terms that can be obtained in the market for loans with comparable credit risk.

Allowance for Credit Losses

Allowance for Credit Losses

On January 1, 2020, the Company adopted the provisions of ASU No. 2016-13, Current Expected Credit Losses. The allowance for credit losses (“allowance” or “ACL”) represents an amount which, in management's judgment, reflects the lifetime expected losses that may be sustained on outstanding loans at the balance sheet date based on the evaluation of the size and current risk characteristics of the loan portfolio, past events, current conditions, reasonable and supportable forecasts of future economic conditions and prepayment experience. The allowance is measured and recorded upon the initial recognition of a financial asset. The allowance is reduced by charge-offs, net of recoveries of previous losses, and is increased or decreased by a provision or credit for credit losses, which is recorded as a current period expense.

Determination of the appropriateness of the allowance is inherently complex and requires the use of significant and highly subjective estimates. The reasonableness of the allowance is reviewed periodically by the Risk Committee of the Board of Directors and formally approved quarterly by that same committee of the Board.

The Company’s methodology for estimating the allowance includes: (1) a collective quantified reserve that reflects the Company’s historical default and loss experience adjusted for expected economic conditions throughout a reasonable and supportable period and the Company’s prepayment and curtailment rates; (2) collective qualitative factors that consider the expected impact of certain factors not fully captured in the collective quantified reserve, including concentrations of the loan portfolio, expected changes to the economic forecasts, large relationships, early delinquencies, and factors related to credit administration, including, among others, loan-to-value ratios, borrowers’ risk rating and credit score migrations; and (3) individual allowances on collateral-dependent loans where borrowers are experiencing financial difficulty or when the Company determines that the foreclosure is probable. The Company excludes accrued interest from the measurement of the allowance as the Company has a non-accrual policy to reverse any accrued, uncollected interest income as loans are moved to non-accrual status.

Loans are pooled into segments based on the similar risk characteristics of the underlying borrowers, in addition to consideration of collateral type, industry and business purpose of the loans. Portfolio segments used to estimate the allowance are the same as portfolio segments used for general credit risk management purposes. Refer to Note 5 for more details on the Company’s portfolio segments.

The Company applies two calculation methodologies to estimate the collective quantified component of the allowance: discounted cash flows method and weighted average remaining life method. Allowance estimates on commercial acquisition, development and construction (“AD&C”) and residential construction segments are based on the weighted average remaining life method. Allowance estimates on all other portfolio segments are based on the discounted cash flows method. Segments utilizing the discounted cash flows method are further sub-segmented into risk level pools, determined either by risk rating for commercial loans or Beacon Scores ranges for residential and consumer loans. To better manage risk and reasonably determine the sufficiency of reserves, this segregation allows the Company to monitor the allowance component applicable to higher risk loans separate from the remainder of the portfolio. Collective calculation methodologies utilize the Company’s historical default and loss experience adjusted for future economic forecasts. The reasonable and supportable forecast period represents a two-year economic outlook for the applicable economic variables. Following the end of the reasonable and supportable forecast period expected losses revert back to the historical mean over the next two years on a straight-line basis. Economic variables that have the most significant impact on the allowance include: unemployment rate, house price index and business bankruptcies. Contractual loan level cash flows within the discounted cash flows methodology are adjusted for the Company’s historical prepayment and curtailment rate experience.

The individual reserve assessment is applied to collateral dependent loans where borrowers are experiencing financial difficulty or when the Company determines that a foreclosure is probable. The determination of the fair value of the collateral depends on whether a repayment of the loan is expected to be from the sale or the operation of the collateral. When a repayment is expected from the operation of the collateral, the Company uses the present value of expected cash flows from the operation of the collateral as the fair value. When the repayment of the loan is expected from the sale of the collateral the fair value of the collateral is based on an observable market price or the collateral’s appraised value, less estimated costs to sell. Third party appraisals used in the individual reserve assessment are conducted at least annually with underlying assumptions that are reviewed by management. Third party appraisals may be obtained on a more frequent basis if deemed necessary. Internal evaluations of collateral value are conducted quarterly to ensure any further deterioration of the collateral value is recognized on a timely basis. During the individual reserve assessment, management also considers the potential future changes in the value of the collateral over the remainder of the loan’s remaining life. The Company may receive updated appraisals which contradict the preliminary determination of fair value used to establish an individual allowance on a loan. In these instances the individual allowance is adjusted to reflect the Company’s evaluation of the updated appraised fair value. In the event a loss was previously confirmed and the loan was charged down to the estimated fair value based on a previous appraisal, the balance of partially charged-off loans are not subsequently increased, but could be further decreased depending on the direction of the change in fair value. Payments on fully or partially charged-off loans are accounted for under the cost-recovery method. Under this method, all payments received are applied on a cash basis to reduce the entire outstanding principal balance, then to recognize a recovery of all previously charged-off amounts before any interest income may be recognized. Based on the individual reserve assessment, if the Company determines that the fair value of the collateral is less than the amortized cost basis of the loan, an individual allowance will be established measured as the difference between the fair value of the collateral

(less costs to sell) and the amortized cost basis of the loan. Once a loss has been confirmed, the loan is charged-down to its estimated fair value.

Large groups of smaller non-accrual homogeneous loans are not individually evaluated for allowance and include residential permanent and construction mortgages and consumer installment loans. These portfolios are reserved for on a collective basis using historical loss rates of similar loans over the weighted average life of each pool.

The Company reviews its unfunded commitments to determine if they are unconditionally cancellable by the Company. If the unfunded commitment is determined to not be unconditionally cancellable by the Company, a reserve for unfunded commitments is established. The reserve for unfunded commitments considers both the likelihood that the funding will occur and an estimate of expected credit losses over the life of the commitment.

Management believes it uses relevant information available to make determinations about the allowance and that it has established the existing allowance in accordance with GAAP. However, the determination of the allowance requires significant judgment, and estimates of expected lifetime losses in the loan portfolio can vary significantly from the amounts actually observed. While management uses available information to recognize expected losses, future additions to the allowance may be necessary based on

changes in the loans comprising the portfolio, changes in the current and forecasted economic conditions, changes to the interest rate environment which may directly impact prepayment and curtailment rate assumptions, and changes in the financial condition of borrowers.

Acquired Loans

Acquired Loans

Loans acquired in connection with acquisitions are recorded at their acquisition-date fair value. The allowance for credit losses related to the acquired loan portfolio is not carried over. Acquired loans are classified into two categories based on the credit risk characteristics of the underlying borrowers as either purchased credit deteriorated (“PCD”) loans, or loans with no evidence of credit deterioration (“non-PCD”).

PCD loans are defined as a loan or pool of loans that have experienced more-than-insignificant credit deterioration since the origination date. The Company uses a combination of individual and pooled review approaches to determine if acquired loans are PCD. At acquisition, the Company considers a number of factors to determine if an acquired loan or pool of loans has experienced more-than-insignificant credit deterioration. These factors include:

•loans classified as non-accrual,

•loans with risk rating of special mention or worse (using the Company's risk rating scale),

•loans with multiple risk rating downgrades since origination,

•loans with evidence of being 60 days or more past due,

•loans previously modified in a troubled debt restructuring,

•loans that received an interest only or payment deferral modification, and

•loans in industries that show evidence of additional risk due to economic conditions.

The initial allowance related to PCD loans that share similar risk characteristics is established using a pooled approach. The Company uses either a discounted cash flow or weighted average remaining life method to determine the required level of the allowance. PCD loans that were classified as non-accrual as of the acquisition date and are collateral dependent are assessed for allowance on an individual basis.

For PCD loans, an initial allowance is established on the acquisition date and added to the fair value of the loan to arrive at acquisition date amortized cost. Accordingly, no provision for credit losses is recognized on PCD loans at the acquisition date. Subsequent to the acquisition date, the initial allowance on PCD loans will increase or decrease based on future evaluations, with changes recognized in the provision for credit losses.

Non-PCD loans are pooled into segments together with originated loans that share similar risk characteristics and have an allowance established on the acquisition date, which is recognized in the current period provision for credit losses.

Determining the fair value of the acquired loans involves estimating the principal and interest payment cash flows expected to be collected on the loans and discounting those cash flows at a market rate of interest. Management considers a number of factors in evaluating the acquisition-date fair value including the remaining life, interest rate profile, market interest rate environment, payment schedules, risk ratings, probability of default and loss given default, and estimated prepayment rates. For PCD loans, the non-credit discount or premium is allocated to individual loans as determined by the difference between the loan’s unpaid principal balance and amortized cost basis. The non-credit premium or discount is recognized into interest income on a level yield basis over the remaining expected life of the loan. For non-PCD loans, the fair value discount or premium is allocated to individual loans and recognized into interest income on a level yield basis over the remaining expected life of the loan.

Premises and Equipment

Premises and Equipment

Premises and equipment are stated at cost, less accumulated depreciation and amortization, computed using the straight-line method. Premises and equipment are depreciated over the useful lives of the assets, which generally range from 3 to 10 years for furniture, fixtures and equipment, 3 to 5 years for computer software and hardware, and 10 to 40 years for buildings and building improvements. Leasehold improvements are amortized over the lesser of the lease term or the estimated useful lives of the improvements. The costs of major renewals and betterments are capitalized, while the costs of ordinary maintenance and repairs are included in non-interest expense.

Leases

Leases

The Company determines if an arrangement is a lease at inception. All of the Company’s leases are currently classified as operating leases and are included in other assets and other liabilities on the Company’s Consolidated Statements of Condition. Periodic operating lease costs are recorded in occupancy expenses of premises on the Company's Consolidated Statements of Income.

Right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term, and lease liabilities represent the Company’s obligation to make lease payments arising from the lease arrangements. Operating lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of the expected future lease payments over the remaining lease term. In determining the present value of future lease payments, the Company uses its incremental borrowing rate based on the information available at the lease commencement date. The operating ROU assets are adjusted for any lease payments made at or before the lease commencement date, initial direct costs, any lease incentives received and, for acquired leases, any favorable or unfavorable fair value adjustments. The present value of the lease liability may include the impact of options to extend or terminate the lease when it is reasonably certain that the Company will exercise such options provided in the lease terms. Lease expense is recognized on a straight-line basis over the expected lease term. Lease agreements that include lease and non-lease components, such as common area maintenance charges, are accounted for separately.

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

Goodwill represents the excess purchase price paid over the fair value of the net assets acquired in a business combination. Goodwill is not amortized but is tested for impairment annually or more frequently if events or changes in circumstances indicate that the asset might be impaired. Impairment testing requires that the fair value of each of the Company’s reporting units be compared to the carrying amount of the reporting unit’s net assets, including goodwill. The Company’s reporting units were identified based upon an analysis of each of its individual operating segments. If the fair values of the reporting units exceed their book values, no write-down of recorded goodwill is required. If the fair value of a reporting unit is less than book value, an expense may be required to write-down the related goodwill to the proper carrying value. Any impairment would be realized through a reduction of goodwill or the intangible and an offsetting charge to non-interest expense. Annually, the Company performs an impairment test of goodwill as of October 1 of each year. During the year, any triggering event that occurs may affect goodwill and could require an impairment assessment. Determining the fair value of a reporting unit requires the Company to use a degree of subjectivity. The Company's annual impairment test of goodwill and other intangible assets did not identify any impairment. Additionally, the Company determined that there were no triggering events and as a result no evidence of impairment between the annual impairment test and December 31, 2021.

Accounting guidance provides the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. The Company assesses qualitative factors on a quarterly basis. Based on the assessment of these qualitative factors, if it is determined that it is more likely than not that the fair value of a reporting unit is not less than the carrying value, then performing the impairment process is not necessary. However, if it is determined that it is more likely than not that the carrying value exceeds the fair value a quantified analysis is required to determine whether an impairment exists.

Other intangible assets represent purchased assets that lack physical substance but can be distinguished from goodwill because of contractual or other legal rights or because the asset is capable of being sold or exchanged either on its own or in combination with a related contract, asset, or liability. Other intangible assets have finite lives and are reviewed for impairment annually. These assets are amortized over their estimated useful lives either on a straight-line or sum-of-the-years basis over varying periods that initially did not exceed 15 years.

Other Real Estate Owned

Other Real Estate Owned

OREO is comprised of properties acquired in partial or total satisfaction of problem loans. The properties are recorded at fair value less estimated costs of disposal, on the date acquired or on the date that the Company acquires effective control over the property. Gains or losses arising at the time of acquisition of such properties are charged against the allowance for credit losses. During the holding period OREO continues to be measured at lower of cost or fair value less estimated costs of disposal, and any subsequent declines in value are expensed as incurred. Gains and losses realized from the sale of OREO, as well as valuation adjustments and expenses of operation are included in non-interest expense.

Derivative Financial Instruments

Derivative Financial Instruments

Derivative Loan Commitments

Mortgage loan commitments are derivative loan commitments if the loan that will result from exercise of the commitment will be held for sale upon funding. Derivative loan commitments are recognized at fair value in the Consolidated Statements of Condition in other assets or other liabilities with changes in their fair values recorded as a component of mortgage banking activities in the Consolidated Statements of Income.

Mortgage loan commitments are issued to borrowers. Subsequent to commitment date, changes in the fair value of the loan commitment are recognized based on changes in the fair value of the underlying mortgage loan due to interest rate changes, changes in the probability the derivative loan commitment will be exercised, and the passage of time. In estimating fair value, a probability is assigned to a loan commitment based on an expectation that it will be exercised and the loan will be funded.

Forward Loan Sale Commitments

Loan sales agreements are evaluated to determine whether they meet the definition of a derivative as facts and circumstances may differ significantly. If agreements qualify, to protect against the price risk inherent in derivative loan commitments, the Company utilizes both “mandatory delivery” and “best efforts” forward loan sale commitments to mitigate the risk of potential decreases in the values of loans that would result from the exercise of the derivative loan commitments. Mandatory delivery contracts are accounted for as derivative instruments. Generally, best efforts contracts also meet the definition of derivative instruments after the loan to the borrower has closed. Accordingly, forward loan sale commitments that economically hedge the closed loan inventory are recognized at fair value in the Consolidated Statements of Condition in other assets or other liabilities with changes in their fair values recorded as a component of mortgage banking activities in the Consolidated Statements of Income. The Company estimates the fair value of its forward loan sales commitments using a methodology similar to that used for derivative loan commitments.

Interest Rate Swap Agreements

The Company enters into interest rate swaps (“swaps”) with commercial loan customers to provide a facility to mitigate the fluctuations in the variable rate on the respective loans. These swaps are matched in exact offsetting terms to swaps that the Company enters into with an outside third party. The swaps are reported at fair value in other assets or other liabilities in the Consolidated Statements of Condition. The Company's swaps qualify as derivatives, but are not designated as hedging instruments, thus any net gain or loss resulting from changes in the fair value is recognized in other non-interest income in the Consolidated Statements of Income. Further discussion of the Company's financial derivatives is set forth in Note 19.

Off-Balance-Sheet Credit Risk

Off-Balance Sheet Credit Risk

The Company issues financial or standby letters of credit that represent conditional commitments to fund transactions by the Company, typically to guarantee performance of a customer to a third-party related to borrowing arrangements. The credit risk associated with issuing letters of credit is essentially the same as occurs when extending loan facilities to borrowers. The Company monitors the exposure to the letters of credit as part of its credit review process. Extensions of letters of credit, if any, would become part of the loan balance outstanding and would be evaluated in accordance with the Company’s credit policies. Potential exposure to loss for unfunded letters of credit if deemed necessary would be recorded in other liabilities in the Consolidated Statements of Condition.

In the ordinary course of business the Company originates and sells whole loans to a variety of investors. Mortgage loans sold are subject to representations and warranties made to the third-party purchasers regarding certain attributes. Subsequent to the sale, if a material underwriting deficiency or documentation defect is determined, the Company may be obligated to repurchase the mortgage loan or reimburse the investor for losses incurred if the deficiency or defect cannot be rectified within a specific period subsequent to discovery. The Company monitors the activity regarding the requirement to repurchase loans and the associated losses incurred. This information is applied to determine an estimated recourse reserve that is recorded in other liabilities in the Consolidated Statements of Condition.

Valuation of Long-Lived Assets

Valuation of Long-Lived Assets

The Company reviews long-lived assets, including leases, and certain identifiable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability is measured by comparing the carrying amount of the asset to future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets

exceeds the estimated fair value of the assets. Assets to be disposed of are reported at the lower of the cost or the fair value, less costs to sell.

Transfers of Financial Assets

Transfers of Financial Assets

Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right or from providing more than a trivial benefit to the transferor) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through any agreement to repurchase or redeem them before their maturity or likely cause a holder to return those assets whether through unilateral ability or a price so favorable to the transferee that it is probable that the transferee will require the transferor to repurchase them. A participating interest must be in an entire financial asset and cannot represent an interest in a group of financial assets. Except for compensation paid for services performed, all cash flows from the asset are allocated to the participating interest holders in proportion to their share of ownership. Financial assets obtained or liabilities incurred in a sale are recognized and initially measured at fair value.

Advertising Costs

Advertising Costs

Advertising costs are expensed as incurred and included as marketing expense in non-interest expenses in the Consolidated Statements of Income.

Net Income per Common Share

Net Income per Common Share

The Company calculates earnings per common share under the two class method, which provides that unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and shall be included in the computation of earnings per share pursuant to the dual class method. The Company has determined that its outstanding non-vested restricted stock awards are participating securities.

Under the two class method, basic earnings per common share is computed by dividing net earnings allocated to common shareholders by the weighted average number of common shares outstanding during the applicable period, which excludes outstanding participating securities. Diluted earnings per common share is computed using the weighted average number of common shares determined for the basic earnings per common share computation plus the dilutive effect of incremental stock options and restricted stock.

Income Taxes

Income Taxes

Income tax expense is based on the results of operations, adjusted for permanent differences between items of income or expense reported in the financial statements and those reported for tax purposes. Deferred income tax assets and liabilities are determined using the liability method. Under the liability method, deferred income taxes are determined based on the differences between the financial statement carrying amounts and the income tax bases of assets and liabilities and are measured at the enacted tax rates that will be in effect when these differences reverse. The effects of the enactment of the new tax law are accounted for under the existing authoritative guidance.

The Company’s policy is to recognize interest and penalties on income taxes in other non-interest expense in the Consolidated Statements of Income.

Adopted Accounting Pronouncements

Adopted Accounting Pronouncements

In December 2019, FASB released ASU 2019-12 - Income Taxes (Topic 740), which simplifies the accounting for income taxes by removing multiple exceptions to the general principals in Topic 740. The standard was effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2020. The Company adopted this standard during the current year and it did not have a material impact on the Company’s Consolidated Financial Statements.

Pending Accounting Pronouncements

Pending Accounting Pronouncements

In March 2020, FASB released Accounting Standards Update (“ASU”) 2020-04 - Reference Rate Reform (Topic 848), which provides optional guidance to ease the accounting burden in accounting for, or recognizing the effects from, reference rate reform on financial reporting. The new standard is a result of LIBOR likely being discontinued as an available benchmark rate. The standard is elective and provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, or other transactions that reference LIBOR, or another reference rate expected to be discontinued. The amendments in the update are effective for all entities between March 12, 2020 and December 31, 2022, and can be adopted at any time during this period. The Company has not yet fully

adopted this standard. A cross-functional working group has been established to guide the Company’s transition from LIBOR to alternative reference rates. The Company has identified its products that are either directly or indirectly influenced by LIBOR and has implemented enhanced fallback language to facilitate the transition to alternative reference rates. The Company is evaluating existing platforms and systems and preparing to offer new rates. The Company stopped originating any new loans referencing LIBOR during 2021. Currently, the Company does not expect that the adoption of this standard will have a material impact on its Consolidated Financial Statements.

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ACQUISITION OF REVERE BANK (Tables)

12 Months Ended

Dec. 31, 2021

Business Combination and Asset Acquisition [Abstract]

Fair values of acquired identifiable assets and liabilities assumed

The consideration paid for Revere’s common equity and outstanding stock options and the final fair values of acquired identifiable assets and assumed identifiable liabilities as of March 31, 2021 were as follows:

(Dollars in thousands, except per share data)	March 31, 2021
Purchase price:
Fair value of common shares issued (12,768,949 shares) based on Sandy Spring's share price of $22.64	$	289,089
Fair value of Revere stock options converted to Sandy Spring stock options	3,611
Cash paid for cashed-out Revere stock options	291
Cash for fractional shares	11
Total purchase price	$	293,002
Identifiable assets:
Cash and cash equivalents	$	80,744
Investments available-for-sale	180,752
Loans	2,502,244
Premises and equipment	3,443
Accrued interest receivable	7,651
Core deposit intangible asset	18,360
Other assets	53,162
Total identifiable assets	$	2,846,356
Identifiable liabilities:
Deposits	$	2,322,422
Borrowings	205,514
Other liabilities	25,933
Total identifiable liabilities	$	2,553,869
Fair value of net assets acquired including identifiable intangible assets	292,487
Goodwill	$	515

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INVESTMENTS (Tables)

12 Months Ended

Dec. 31, 2021

Investments, Debt and Equity Securities [Abstract]

Amortized Cost and Estimated Fair Values of Investments Available-for-sale

The amortized cost and estimated fair values of investments available-for-sale at December 31 are presented in the following table:

	2021								2020
(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
U.S. treasuries and government agencies	$	68,487	$	202	$	(150)	$	68,539	$	42,750	$	549	$	(2)	$	43,297
State and municipal	323,286		6,561		(3,445)		326,402		377,108		13,470		(211)		390,367
Mortgage-backed and asset-backed	1,074,577		8,203		(11,825)		1,070,955		881,201		24,078		(847)		904,432
Corporate debt	—		—		—		—		9,100		825		—		9,925
Total investments available-for-sale	$	1,466,350	$	14,966	$	(15,420)	$	1,465,896	$	1,310,159	$	38,922	$	(1,060)	$	1,348,021

Gross Unrealized Losses and Fair Value by Length of Time

Gross unrealized losses and fair values by length of time that individual available-for-sale securities have been in an unrealized loss position at December 31 are presented in the following tables:

	December 31, 2021
	Number of Securities	Less Than 12 Months				12 Months or More				Total
(Dollars in thousands)		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. treasuries and government agencies	5	$	49,695	$	150	$	—	$	—	$	49,695	$	150
State and municipal	32	63,206		2,288		21,740		1,157		84,946		3,445
Mortgage-backed and asset-backed	104	665,813		10,145		37,857		1,680		703,670		11,825
Total	141	$	778,714	$	12,583	$	59,597	$	2,837	$	838,311	$	15,420

	December 31, 2020
	Number of Securities	Less Than 12 Months				12 Months or More				Total
(Dollars in thousands)		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. treasuries and government agencies	2	$	25,369	$	2	$	—	$	—	$	25,369	$	2
State and municipal	8	22,753		211		—		—		22,753		211
Mortgage-backed and asset-backed	24	44,746		154		76,879		693		121,625		847
Total	34	$	92,868	$	367	$	76,879	$	693	$	169,747	$	1,060

Estimated Fair Values of Debt Securities Available-for-sale by Contractual Maturity

The estimated fair values and amortized costs of debt securities available-for-sale by contractual maturity at December 31 are provided in the following table:

	December 31, 2021				December 31, 2020
(In thousands)	Fair Value		Amortized Cost		Fair Value		Amortized Cost
U.S. treasuries and government agencies:
One year or less	$	12,029	$	11,995	$	33,963	$	33,833
One to five years	56,510		56,492		9,334		8,917
Five to ten years	—		—		—		—
After ten years	—		—		—		—
State and municipal:
One year or less	12,821		12,709		16,581		16,458
One to five years	27,408		26,637		44,910		43,857
Five to ten years	42,960		42,661		59,059		56,130
After ten years	243,213		241,279		269,817		260,663
Mortgage-backed and asset-backed:
One year or less	9,272		9,239		1		1
One to five years	14,752		14,575		21,637		21,229
Five to ten years	388,918		390,569		74,142		72,481
After ten years	658,013		660,194		808,652		787,490
Corporate debt:
One year or less	—		—		—		—
One to five years	—		—		2,318		2,100
Five to ten years	—		—		7,607		7,000
After ten years	—		—		—		—
Total available-for-sale debt securities	$	1,465,896	$	1,466,350	$	1,348,021	$	1,310,159

Other Equity Securities

Other equity securities at the dates indicated are presented in the following table:

(In thousands)	2021		2020
Federal Reserve Bank stock	$	34,097	$	38,650
Federal Home Loan Bank of Atlanta stock	6,392		26,433
Other equity securities	677		677
Total equity securities	$	41,166	$	65,760

Gross Realized Gains and Losses on All Investments

Gross realized gains and losses on all investments for the years ended December 31 are presented in the following table:

(In thousands)	2021		2020		2019
Gross realized gains from sales of investments available-for-sale	$	3,588	$	1,297	$	14
Gross realized losses from sales of investments available-for-sale	(3,478)		(1,068)		(2)
Net gains from calls of investments available-for-sale	102		238		65
Net investment securities gains	$	212	$	467	$	77

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LOANS (Tables)

12 Months Ended

Dec. 31, 2021

Receivables [Abstract]

Loan Portfolio Segment Balances

The loan portfolio segment balances at December 31 are presented in the following table:

(In thousands)	2021		2020
Commercial real estate:
Commercial investor real estate	$	4,141,346	$	3,634,720
Commercial owner-occupied real estate	1,690,881		1,642,216
Commercial AD&C	1,088,094		1,050,973
Commercial business	1,481,834		2,267,548
Total commercial loans	8,402,155		8,595,457
Residential real estate:
Residential mortgage	937,570		1,105,179
Residential construction	197,652		182,619
Consumer	429,714		517,254
Total residential and consumer loans	1,564,936		1,805,052
Total loans	$	9,967,091	$	10,400,509

Summary of Loans to Related Parties

Certain directors and executive officers have loan transactions with the Company. The following schedule summarizes changes in amounts of loans outstanding, both direct and indirect, to these persons during the periods indicated:

(In thousands)	2021		2020
Balance at January 1	$	96,005	$	51,367
Additions	7,040		46,846
Repayments	(24,818)		(2,208)
Balance at December 31	$	78,227	$	96,005

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CREDIT QUALITY ASSESSMENT (Tables)

12 Months Ended

Dec. 31, 2021

Credit Loss [Abstract]

Allowance For Credit Loss Activity

Summary information on the allowance for credit loss activity for the years ended December 31 is provided in the following table:

(In thousands)	2021		2020		2019
Balance at beginning of year	$	165,367	$	56,132	$	53,486
Initial allowance on PCD loans at adoption of ASC 326	—		2,762		—
Transition impact of adopting ASC 326	—		2,983		—
Initial allowance on Revere PCD loans	—		18,628		—
Provision/ (credit) for credit losses	(45,556)		85,669		4,684
Loan charge-offs	(12,313)		(1,819)		(2,668)
Loan recoveries	1,647		1,012		630
Net charge-offs	(10,666)		(807)		(2,038)
Balance at period end	$	109,145	$	165,367	$	56,132

Schedule of Collateral Dependent Loans Individually Evaluated for Credit Loss

The following table provides summary information regarding collateral dependent loans individually evaluated for credit loss at the dates indicated:

(In thousands)	2021		2020
Collateral dependent loans individually evaluated for credit loss with an allowance	$	9,510	$	20,717
Collateral dependent loans individually evaluated for credit loss without an allowance	24,024		77,001
Total individually evaluated collateral dependent loans	$	33,534	$	97,718
Allowance for credit losses related to loans evaluated individually	$	6,593	$	11,405
Allowance for credit losses related to loans evaluated collectively	102,552		153,962
Total allowance for credit losses	$	109,145	$	165,367

Activity in Allowance for Credit Losses by Respective Loan Portfolio Segment

The following tables provide information on the activity in the allowance for credit losses by the respective loan portfolio segment for the years ended December 31:

	2021
	Commercial Real Estate												Residential Real Estate
(In thousands)	Commercial Investor R/E			Commercial Owner- Occupied R/E			Commercial AD&C			Commercial Business			Residential Mortgage			Residential Construction			Consumer			Total
Balance as of December 31, 2020	$	57,404		$	20,061		$	22,157		$	46,806		$	11,295		$	1,502		$	6,142		$	165,367
Provision/ (credit)	(6,598)			(8,238)			172			(20,132)			(6,321)			(459)			(3,980)			(45,556)
Charge-offs	(5,802)			(136)			(2,007)			(4,069)			—			—			(299)			(12,313)
Recoveries	285			—			—			565			410			5			382			1,647
Net (charge-offs)/ recoveries	(5,517)			(136)			(2,007)			(3,504)			410			5			83			(10,666)
Balance at end of period	$	45,289		$	11,687		$	20,322		$	23,170		$	5,384		$	1,048		$	2,245		$	109,145
Total loans	$	4,141,346		$	1,690,881		$	1,088,094		$	1,481,834		$	937,570		$	197,652		$	429,714		$	9,967,091
Allowance for credit losses to total loans ratio	1.09		%	0.69		%	1.87		%	1.56		%	0.57		%	0.53		%	0.52		%	1.10		%
Average loans	$	3,689,769		$	1,661,015		$	1,110,420		$	1,952,537		$	979,754		$	178,171		$	463,200		$	10,034,866
Net charge-offs/ (recoveries) to average loans	0.15		%	0.01		%	0.18		%	0.18		%	(0.04)		%	—		%	(0.02)		%	0.11		%
Balance of loans individually evaluated for credit loss	$	12,489		$	9,306		$	650		$	9,033		$	1,704		$	—		$	352		$	33,534
Allowance related to loans evaluated individually	$	213		$	79		$	504		$	5,797		$	—		$	—		$	—		$	6,593
Individual allowance to loans evaluated individually ratio	1.71		%	0.85		%	77.54		%	64.18		%	—		%	—		%	—		%	19.66		%
Balance of loans collectively evaluated for credit loss	$	4,128,857		$	1,681,575		$	1,087,444		$	1,472,801		$	935,866		$	197,652		$	429,362		$	9,933,557
Allowance related to loans evaluated collectively	$	45,076		$	11,608		$	19,818		$	17,373		$	5,384		$	1,048		$	2,245		$	102,552
Collective allowance to loans evaluated collectively ratio	1.09		%	0.69		%	1.82		%	1.18		%	0.58		%	0.53		%	0.52		%	1.03		%

	2020
	Commercial Real Estate												Residential Real Estate
(In thousands)	Commercial Investor R/E			Commercial Owner- Occupied R/E			Commercial AD&C			Commercial Business			Residential Mortgage			Residential Construction			Consumer			Total
Balance as of December 31, 2019	$	18,407		$	6,884		$	7,590		$	11,395		$	8,803		$	967		$	2,086		$	56,132
Initial allowance on PCD loans at adoption of ASC 326	1,114			—			—			1,549			—			—			99			2,762
Transition impact of adopting ASC 326	(3,125)			387			2,576			2,988			(388)			(275)			820			2,983
Initial allowance on Revere PCD loans	7,973			2,782			1,248			6,289			243			6			87			18,628
Provision	33,431			10,008			10,743			24,374			3,016			798			3,299			85,669
Charge-offs	(411)			—			—			(491)			(484)			—			(433)			(1,819)
Recoveries	15			—			—			702			105			6			184			1,012
Net (charge-offs)/ recoveries	(396)			—			—			211			(379)			6			(249)			(807)
Balance at end of period	$	57,404		$	20,061		$	22,157		$	46,806		$	11,295		$	1,502		$	6,142		$	165,367
Total loans	$	3,634,720		$	1,642,216		$	1,050,973		$	2,267,548		$	1,105,179		$	182,619		$	517,254		$	10,400,509
Allowance for credit losses to total loans ratio	1.58		%	1.22		%	2.11		%	2.06		%	1.02		%	0.82		%	1.19		%	1.59		%
Average loans	$	3,210,527		$	1,560,223		$	906,414		$	1,781,197		$	1,168,668		$	165,567		$	524,897		$	9,317,493
Net charge-offs/ (recoveries) to average loans	0.01		%	—		%	—		%	(0.01)		%	0.03		%	—		%	0.05		%	0.01		%
Balance of loans individually evaluated for credit loss	$	45,227		$	11,561		$	15,044		$	23,648		$	1,874		$	—		$	364		$	97,718
Allowance related to loans evaluated individually	$	1,273		$	—		$	603		$	9,529		$	—		$	—		$	—		$	11,405
Individual allowance to loans evaluated individually ratio	2.81		%	—		%	4.01		%	40.30		%	—		%	—		%	—		%	11.67		%
Balance of loans collectively evaluated for credit loss	$	3,589,493		$	1,630,655		$	1,035,929		$	2,243,900		$	1,103,305		$	182,619		$	516,890		$	10,302,791
Allowance related to loans evaluated collectively	$	56,131		$	20,061		$	21,554		$	37,277		$	11,295		$	1,502		$	6,142		$	153,962
Collective allowance to loans evaluated collectively ratio	1.56		%	1.23		%	2.08		%	1.66		%	1.02		%	0.82		%	1.19		%	1.49		%

Schedule of Collateral Dependent Loans Individually Evaluated for Credit Loss with the Associated Allowances

The following table presents collateral dependent loans individually evaluated for credit losses with the associated allowances for credit losses by the applicable portfolio segment:

	2021
	Commercial Real Estate								Residential Real Estate						Total
(In thousands)	Commercial Investor R/E		Commercial Owner- Occupied R/E		Commercial AD&C		Commercial Business		Residential Mortgage		Residential Construction		Consumer
Loans individually evaluated for credit losses with an allowance:
Non-accruing	$	808	$	79	$	650	$	4,849	$	—	$	—	$	—	$	6,386
Restructured accruing	—		—		—		613		—		—		—		613
Restructured non-accruing	336		—		—		2,175		—		—		—		2,511
Balance	$	1,144	$	79	$	650	$	7,637	$	—	$	—	$	—	$	9,510
Allowance	$	213	$	79	$	504	$	5,797	$	—	$	—	$	—	$	6,593
Loans individually evaluated for credit losses without an allowance:
Non-accruing	$	3,498	$	4,775	$	—	$	434	$	—	$	—	$	—	$	8,707
Restructured accruing	—		—		—		—		1,554		—		—		1,554
Restructured non-accruing	7,847		4,452		—		962		150		—		352		13,763
Balance	$	11,345	$	9,227	$	—	$	1,396	$	1,704	$	—	$	352	$	24,024
Total individually evaluated loans:
Non-accruing	$	4,306	$	4,854	$	650	$	5,283	$	—	$	—	$	—	$	15,093
Restructured accruing	—		—		—		613		1,554		—		—		2,167
Restructured non-accruing	8,183		4,452		—		3,137		150		—		352		16,274
Balance	$	12,489	$	9,306	$	650	$	9,033	$	1,704	$	—	$	352	$	33,534
Unpaid contractual principal balance	$	12,857	$	11,132	$	695	$	10,573	$	2,778	$	—	$	364	$	38,399

	2020
	Commercial Real Estate								Residential Real Estate						Total
(In thousands)	Commercial Investor R/E		Commercial Owner- Occupied R/E		Commercial AD&C		Commercial Business		Residential Mortgage		Residential Construction		Consumer
Loans individually evaluated for credit losses with an allowance:
Non-accruing	$	4,913	$	—	$	1,328	$	11,178	$	—	$	—	$	—	$	17,419
Restructured accruing	—		—		—		589		—		—		—		589
Restructured non-accruing	699		—		—		2,010		—		—		—		2,709
Balance	$	5,612	$	—	$	1,328	$	13,777	$	—	$	—	$	—	$	20,717
Allowance	$	1,273	$	—	$	603	$	9,529	$	—	$	—	$	—	$	11,405
Loans individually evaluated for credit losses without an allowance:
Non-accruing	$	39,615	$	9,315	$	13,716	$	9,118	$	—	$	—	$	—	$	71,764
Restructured accruing	—		—		—		126		1,602		—		—		1,728
Restructured non-accruing	—		2,246		—		627		272		—		364		3,509
Balance	$	39,615	$	11,561	$	13,716	$	9,871	$	1,874	$	—	$	364	$	77,001
Total individually evaluated loans:
Non-accruing	$	44,528	$	9,315	$	15,044	$	20,296	$	—	$	—	$	—	$	89,183
Restructured accruing	—		—		—		715		1,602		—		—		2,317
Restructured non-accruing	699		2,246		—		2,637		272		—		364		6,218
Balance	$	45,227	$	11,561	$	15,044	$	23,648	$	1,874	$	—	$	364	$	97,718
Unpaid contractual principal balance	$	49,920	$	15,309	$	16,040	$	30,958	$	3,225	$	—	$	364	$	115,816

Schedule of Nonaccrual Related Information

The following table presents average principal balance of total non-accrual loans and contractual interest due on non-accrual loans for the periods indicated below:

	2021
	Commercial Real Estate								Residential Real Estate						Total
(In thousands)	Commercial Investor R/E		Commercial Owner- Occupied R/E		Commercial AD&C		Commercial Business		Residential Mortgage		Residential Construction		Consumer
Average non-accrual loans for the period	$	31,590	$	9,444	$	9,236	$	12,678	$	9,439	$	36	$	7,369	$	79,792
Contractual interest income due on non-accrual loans during the period	$	2,169	$	555	$	597	$	1,096	$	271	$	2	$	402	$	5,092

	2020
	Commercial Real Estate								Residential Real Estate						Total
(In thousands)	Commercial Investor R/E		Commercial Owner- Occupied R/E		Commercial AD&C		Commercial Business		Residential Mortgage		Residential Construction		Consumer
Average non-accrual loans for the period	$	26,849	$	6,605	$	4,267	$	16,532	$	11,634	$	—	$	6,675	$	72,562
Contractual interest income due on non-accrual loans during the period	$	6,547	$	2,741	$	4,505	$	2,858	$	918	$	—	$	732	$	18,301

Schedule of Information on the Credit Quality of Loan Portfolio

The following tables provide information on the credit quality of the loan portfolio by segment at December 31 for the years indicated:

	2021
	Commercial Real Estate								Residential Real Estate
(In thousands)	Commercial Investor R/E		Commercial Owner- Occupied R/E		Commercial AD&C		Commercial Business		Residential Mortgage		Residential Construction		Consumer		Total
Analysis of non-accrual loan activity:
Balance at beginning of period	$	45,227	$	11,561	$	15,044	$	22,933	$	10,212	$	—	$	7,384	$	112,361
Loans placed on non-accrual	699		3,676		49		1,339		695		62		1,626		8,146
Non-accrual balances transferred to OREO	—		(257)		—		—		—		—		—		(257)
Non-accrual balances charged-off	(5,803)		(136)		(2,007)		(3,547)		—		—		(100)		(11,593)
Net payments or draws	(26,813)		(5,538)		(12,436)		(12,305)		(2,406)		(7)		(1,725)		(61,230)
Non-accrual loans brought current	(821)		—		—		—		(60)		—		(460)		(1,341)
Balance at end of period	$	12,489	$	9,306	$	650	$	8,420	$	8,441	$	55	$	6,725	$	46,086

	2020
	Commercial Real Estate								Residential Real Estate
(In thousands)	Commercial Investor R/E		Commercial Owner- Occupied R/E		Commercial AD&C		Commercial Business		Residential Mortgage		Residential Construction		Consumer		Total
Analysis of non-accrual loan activity:
Balance at beginning of period	$	8,437	$	4,148	$	829	$	8,450	$	12,661	$	—	$	4,107	$	38,632
PCD loans designated as non-accrual (1)	9,544		—		—		2,539		8		—		993		13,084
Loans placed on non-accrual	37,882		8,572		15,844		17,442		1,485		—		4,061		85,286
Non-accrual balances transferred to OREO	—		—		—		—		(70)		—		—		(70)
Non-accrual balances charged-off	(411)		—		—		(446)		(416)		—		(121)		(1,394)
Net payments or draws	(10,225)		(1,059)		(1,629)		(4,169)		(2,598)		—		(1,521)		(21,201)
Non-accrual loans brought current	—		(100)		—		(883)		(858)		—		(135)		(1,976)
Balance at end of period	$	45,227	$	11,561	$	15,044	$	22,933	$	10,212	$	—	$	7,384	$	112,361

(1)Upon the adoption of the CECL standard, the Company transitioned from closed pool level accounting for PCI loans during the first quarter of 2020. Non-accrual loans are determined based on the individual loan level and aggregated for reporting.

Credit Quality of Loan Portfolio by Segment

	2021
	Commercial Real Estate								Residential Real Estate
(In thousands)	Commercial Investor R/E		Commercial Owner- Occupied R/E		Commercial AD&C		Commercial Business		Residential Mortgage		Residential Construction		Consumer		Total
Performing loans:
Current	$	4,127,009	$	1,680,635	$	1,085,642	$	1,471,669	$	919,199	$	197,597	$	419,558	$	9,901,309
30-59 days	1,656		86		1,802		753		5,157		—		3,021		12,475
60-89 days	192		854		—		379		2,662		—		410		4,497
Total performing loans	4,128,857		1,681,575		1,087,444		1,472,801		927,018		197,597		422,989		9,918,281
Non-performing loans:
Non-accrual loans	12,489		9,306		650		8,420		8,441		55		6,725		46,086
Loans greater than 90 days past due	—		—		—		—		557		—		—		557
Restructured loans	—		—		—		613		1,554		—		—		2,167
Total non-performing loans	12,489		9,306		650		9,033		10,552		55		6,725		48,810
Total loans	$	4,141,346	$	1,690,881	$	1,088,094	$	1,481,834	$	937,570	$	197,652	$	429,714	$	9,967,091

	2020
	Commercial Real Estate								Residential Real Estate
(In thousands)	Commercial Investor R/E		Commercial Owner- Occupied R/E		Commercial AD&C		Commercial Business		Residential Mortgage		Residential Construction		Consumer		Total
Performing loans:
Current	$	3,571,184	$	1,624,265	$	1,033,057	$	2,238,617	$	1,073,963	$	182,557	$	502,548	$	10,226,191
30-59 days	14,046		6,390		29		4,859		16,213		—		5,275		46,812
60-89 days	4,130		—		2,843		263		2,709		62		2,047		12,054
Total performing loans	3,589,360		1,630,655		1,035,929		2,243,739		1,092,885		182,619		509,870		10,285,057
Non-performing loans:
Non-accrual loans	45,227		11,561		15,044		22,933		10,212		—		7,384		112,361
Loans greater than 90 days past due	133		—		—		161		480		—		—		774
Restructured loans	—		—		—		715		1,602		—		—		2,317
Total non-performing loans	45,360		11,561		15,044		23,809		12,294		—		7,384		115,452
Total loans	$	3,634,720	$	1,642,216	$	1,050,973	$	2,267,548	$	1,105,179	$	182,619	$	517,254	$	10,400,509

Information about Credit Quality Indicators by the Year of Origination

The following tables provide information about credit quality indicators by the year of origination:

	2021
	Term Loans by Origination Year												Revolving
(In thousands)	2021		2020		2019		2018		2017		Prior		Loans		Total
Commercial Investor R/E:
Pass	$	1,391,969	$	748,236	$	616,761	$	357,640	$	328,327	$	633,913	$	19,239	$	4,096,085
Special Mention	2,210		510		4,646		596		2,204		10,438		—		20,604
Substandard	807		336		4,308		8,568		10,064		574		—		24,657
Doubtful	—		—		—		—		—		—		—		—
Total	$	1,394,986	$	749,082	$	625,715	$	366,804	$	340,595	$	644,925	$	19,239	$	4,141,346
Current period gross charge-offs	$	—	$	—	$	—	$	903	$	3,975	$	924	$	—	$	5,802
Commercial Owner-Occupied R/E:
Pass	$	360,169	$	254,350	$	319,348	$	178,416	$	172,354	$	363,685	$	1,149	$	1,649,471
Special Mention	156		1,476		4,388		9,035		4,456		9,106		—		28,617
Substandard	1,968		1,800		4,028		2,265		354		2,378		—		12,793
Doubtful	—		—		—		—		—		—		—		—
Total	$	362,293	$	257,626	$	327,764	$	189,716	$	177,164	$	375,169	$	1,149	$	1,690,881
Current period gross charge-offs	$	—	$	—	$	—	$	136	$	—	$	—	$	—	$	136
Commercial AD&C:
Pass	$	454,207	$	226,332	$	148,260	$	87,934	$	13,938	$	—	$	152,896	$	1,083,567
Special Mention	2,888		—		—		—		—		—		989		3,877
Substandard	349		—		301		—		—		—		—		650
Doubtful	—		—		—		—		—		—		—		—
Total	$	457,444	$	226,332	$	148,561	$	87,934	$	13,938	$	—	$	153,885	$	1,088,094
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	2,007	$	—	$	—	$	2,007
Commercial Business:
Pass	$	403,871	$	165,194	$	137,069	$	96,800	$	55,100	$	53,764	$	533,893	$	1,445,691
Special Mention	220		1,998		7,030		1,701		548		577		9,212		21,286
Substandard	3,777		3,262		2,609		797		811		2,065		1,536		14,857
Doubtful	—		—		—		—		—		—		—		—
Total	$	407,868	$	170,454	$	146,708	$	99,298	$	56,459	$	56,406	$	544,641	$	1,481,834
Current period gross charge-offs	$	—	$	—	$	88	$	1,674	$	46	$	2,236	$	25	$	4,069
Residential Mortgage:
Beacon score:
660-850	$	246,612	$	165,623	$	46,925	$	65,865	$	102,628	$	223,420	$	—	$	851,073
600-659	11,102		3,285		3,583		4,255		4,645		20,052		—		46,922
540-599	1,472		1,864		2,162		4,522		1,599		8,201		—		19,820
less than 540	452		4,293		1,575		1,829		2,079		9,527		—		19,755
Total	$	259,638	$	175,065	$	54,245	$	76,471	$	110,951	$	261,200	$	—	$	937,570
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Residential Construction:
Beacon score:
660-850	$	134,335	$	45,890	$	8,063	$	2,078	$	1,347	$	1,160	$	—	$	192,873
600-659	1,922		—		650		—		—		—		—		2,572
540-599	—		—		—		—		—		462		—		462
less than 540	1,745		—		—		—		—		—		—		1,745
Total	$	138,002	$	45,890	$	8,713	$	2,078	$	1,347	$	1,622	$	—	$	197,652
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Consumer:
Beacon score:
660-850	$	3,179	$	1,393	$	3,130	$	3,060	$	1,648	$	26,156	$	350,466	$	389,032
600-659	352		123		324		716		430		4,906		14,119		20,970
540-599	58		8		311		160		89		2,809		4,926		8,361
less than 540	88		58		536		544		98		3,101		6,926		11,351
Total	$	3,677	$	1,582	$	4,301	$	4,480	$	2,265	$	36,972	$	376,437	$	429,714
Current period gross charge-offs	$	—	$	—	$	7	$	2	$	—	$	106	$	184	$	299
Total loans	$	3,023,908	$	1,626,031	$	1,316,007	$	826,781	$	702,719	$	1,376,294	$	1,095,351	$	9,967,091

	2020
	Term Loans by Origination Year												Revolving
(In thousands)	2020		2019		2018		2017		2016		Prior		Loans		Total
Commercial Investor R/E:
Pass	$	910,426	$	763,214	$	448,406	$	448,698	$	469,077	$	498,384	$	33,531	$	3,571,736
Special Mention	11,044		—		4,879		833		269		27		—		$	17,052
Substandard	589		4,245		13,649		20,619		673		6,157		—		$	45,932
Doubtful	—		—		—		—		—		—		—		$	—
Total	$	922,059	$	767,459	$	466,934	$	470,150	$	470,019	$	504,568	$	33,531	$	3,634,720
Current period gross charge-offs	$	—	$	388	$	—	$	—	$	—	$	23	$	—	$	411
Commercial Owner-Occupied R/E:
Pass	$	285,310	$	385,058	$	234,578	$	192,634	$	204,925	$	306,840	$	1,664	$	1,611,009
Special Mention	2,290		—		3,027		4,742		134		4,079		—		$	14,272
Substandard	1,610		4,335		2,065		465		219		8,009		—		$	16,703
Doubtful	—		—		—		—		—		232		—		$	232
Total	$	289,210	$	389,393	$	239,670	$	197,841	$	205,278	$	319,160	$	1,664	$	1,642,216
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial AD&C:
Pass	$	485,631	$	261,537	$	149,703	$	50,192	$	89	$	2,357	$	80,764	$	1,030,273
Special Mention	1,711		—		—		—		—		—		—		$	1,711
Substandard	1,439		891		—		13,816		2,843		—		—		$	18,989
Doubtful	—		—		—		—		—		—		—		$	—
Total	$	488,781	$	262,428	$	149,703	$	64,008	$	2,932	$	2,357	$	80,764	$	1,050,973
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial Business:
Pass	$	1,244,822	$	208,682	$	138,861	$	86,830	$	34,498	$	81,760	$	433,016	$	2,228,469
Special Mention	1,929		1,382		1,119		708		309		621		4,319		$	10,387
Substandard	2,914		4,564		3,519		1,631		2,745		3,456		1,829		$	20,658
Doubtful	106		995		849		36		1,284		1,852		2,912		$	8,034
Total	$	1,249,771	$	215,623	$	144,348	$	89,205	$	38,836	$	87,689	$	442,076	$	2,267,548
Current period gross charge-offs	$	—	$	—	$	23	$	160	$	103	$	205	$	—	$	491
Residential Mortgage:
Beacon score:
660-850	$	229,033	$	74,054	$	138,824	$	172,493	$	129,701	$	251,065	$	—	$	995,170
600-659	4,824		7,706		10,763		11,719		8,173		21,424		—		$	64,609
540-599	350		1,238		5,219		2,608		4,791		10,167		—		$	24,373
less than 540	2,702		2,108		3,576		2,150		892		9,599		—		$	21,027
Total	$	236,909	$	85,106	$	158,382	$	188,970	$	143,557	$	292,255	$	—	$	1,105,179
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	11	$	473	$	—	$	484
Residential Construction:
Beacon score:
660-850	$	112,604	$	44,647	$	14,543	$	2,805	$	1,693	$	—	$	172	$	176,464
600-659	1,743		3,189		—		—		—		—		—		$	4,932
540-599	—		—		—		—		369		—		—		$	369
less than 540	854		—		—		—		—		—		—		$	854
Total	$	115,201	$	47,836	$	14,543	$	2,805	$	2,062	$	—	$	172	$	182,619
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Consumer:
Beacon score:
660-850	$	2,575	$	4,609	$	5,112	$	2,110	$	2,614	$	24,444	$	417,737	$	459,201
600-659	374		445		334		428		467		5,401		21,052		$	28,501
540-599	89		1,216		294		339		601		3,926		6,153		$	12,618
less than 540	751		160		525		785		532		2,826		11,355		$	16,934
Total	$	3,789	$	6,430	$	6,265	$	3,662	$	4,214	$	36,597	$	456,297	$	517,254
Current period gross charge-offs	$	—	$	13	$	123	$	8	$	1	$	140	$	148	$	433
Total loans	$	3,305,720	$	1,774,275	$	1,179,845	$	1,016,641	$	866,898	$	1,242,626	$	1,014,504	$	10,400,509

Restructured Loans for Specific Segments of Loan Portfolio

The following table provides the amounts of the restructured loans at the date of restructuring for specific segments of the loan portfolio during the period indicated:

	For the Year Ended December 31, 2021
	Commercial Real Estate
(In thousands)	Commercial Investor R/E		Commercial Owner- Occupied R/E		Commercial AD&C		Commercial Business		All Other Loans		Total
Troubled debt restructurings:
Restructured accruing	$	—	$	—	$	—	$	—	$	—	$	—
Restructured non-accruing	9,594		3,157		—		1,824		—		14,575
Balance	$	9,594	$	3,157	$	—	$	1,824	$	—	$	14,575
Specific allowance	$	—	$	—	$	—	$	461	$	—	$	461
Restructured and subsequently defaulted	$	—	$	—	$	—	$	—	$	—	$	—

	For the Year Ended December 31, 2020
	Commercial Real Estate
(In thousands)	Commercial Investor R/E		Commercial Owner- Occupied R/E		Commercial AD&C		Commercial Business		All Other Loans		Total
Troubled debt restructurings:
Restructured accruing	$	—	$	—	$	—	$	380	$	549	$	929
Restructured non-accruing	723		930		—		1,951		—		3,604
Balance	$	723	$	930	$	—	$	2,331	$	549	$	4,533
Specific allowance	$	65	$	—	$	—	$	955	$	—	$	1,020
Restructured and subsequently defaulted	$	—	$	—	$	—	$	—	$	—	$	—

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PREMISES AND EQUIPMENT (Tables)

12 Months Ended

Dec. 31, 2021

Property, Plant and Equipment [Abstract]

Components of premises and equipment

Presented in the following table are the components of premises and equipment at December 31:

(In thousands)	2021		2020
Land	$	21,164	$	13,262
Buildings and leasehold improvements	70,193		70,776
Equipment	48,889		49,614
Total premises and equipment	140,246		133,652
Less: accumulated depreciation and amortization	(80,561)		(75,932)
Net premises and equipment	$	59,685	$	57,720

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LEASES (Tables)

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Schedule of Lease Cost

The following table provides information regarding the Company's leases as of the dates indicated:

	Year Ended
	2021			2020
Components of lease expense:
Operating lease cost (resulting from lease payments)	$	12,304		$	12,453
Supplemental cash flow information related to leases:
Operating cash flows from operating leases	$	12,930		$	13,571
ROU assets obtained in the exchange for lease liabilities due to:
New leases	$	803		$	871
Acquisitions	$	—		$	7,720
	As of
	December 31, 2021			December 31, 2020
Supplemental balance sheet information related to leases:
Operating lease ROU assets	$	57,872		$	65,215
Operating lease liabilities	$	67,138		$	74,982
Other information related to leases:
Weighted average remaining lease term of operating leases	9.0 years			9.5 years
Weighted average discount rate of operating leases	2.92		%	3.04		%

Schedule of Maturities of Operating Lease Liabilities

As of December 31, 2021, the maturities of the Company’s operating lease liabilities were as follows:

(In thousands)	Amount
Maturity:
One year	$	11,493
Two years	11,484
Three years	9,580
Four years	7,758
Five years	6,924
Thereafter	30,571
Total undiscounted lease payments	77,810
Less: Present value discount	(10,672)
Lease Liability	$	67,138

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GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Gross Carrying Amounts and Accumulated Amortization of Intangible Assets and Goodwill

The gross carrying amounts and accumulated amortization of intangible assets and goodwill are presented at December 31 in the following table:

	2021						Weighted	2020						Weighted
	Gross				Net		Average	Gross				Net		Average
	Carrying		Accumulated		Carrying		Remaining	Carrying		Accumulated		Carrying		Remaining
(Dollars in thousands)	Amount		Amortization		Amount		Life	Amount		Amortization		Amount		Life
Amortizing intangible assets:
Core deposit intangibles	$	29,038	$	(12,624)	$	16,414	7.4 years	$	29,038	$	(7,969)	$	21,069	8.4 years
Other identifiable intangibles	13,906		(4,400)		9,506		9.7 years	13,906		(2,454)		11,452		10.7 years
Total amortizing intangible assets	$	42,944	$	(17,024)	$	25,920		$	42,944	$	(10,423)	$	32,521
Goodwill	$	370,223			$	370,223		$	370,223			$	370,223

Net carrying amount of goodwill by segment

The following table presents the net carrying amount of goodwill by segment for the periods indicated:

(In thousands)	Community Banking		Insurance		Investment Management		Total
Balance December 31, 2019	$	331,173	$	6,788	$	9,188	$	347,149
Acquisition of Rembert Pendleton Jackson	—		—		22,559		22,559
Acquisition of Revere Bank	515		—		—		515
Balance December 31, 2020	331,688		6,788		31,747		370,223
No Activity	—		—		—		—
Balance December 31, 2021	$	331,688	$	6,788	$	31,747	$	370,223

Estimated Future Amortization Expense for Amortizing Intangibles

The following table presents the estimated future amortization expense for amortizing intangible assets within the years ending December 31:

(In thousands)	Amount
2022	$	5,844
2023	5,089
2024	4,333
2025	3,567
2026	2,732
Thereafter	4,355
Total amortizing intangible assets	$	25,920

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DEPOSITS (Tables)

12 Months Ended

Dec. 31, 2021

Deposits [Abstract]

Composition of Deposits

The following table presents the composition of deposits at December 31 for the years indicated:

(In thousands)	2021		2020
Noninterest-bearing deposits	$	3,779,630	$	3,325,547
Interest-bearing deposits:
Demand	1,604,714		1,292,164
Money market savings	3,415,663		3,339,645
Regular savings	533,862		418,051
Time deposits of less than $250,000	910,464		1,180,636
Time deposits of $250,000 or more	380,398		477,026
Total interest-bearing deposits	6,845,101		6,707,522
Total deposits	$	10,624,731	$	10,033,069

Maturity Schedule for Time Deposits

The following table presents the maturity schedule for time deposits maturing within years ending December 31:

(In thousands)	Amount
2022	$	1,002,132
2023	165,131
2024	89,074
2025	16,464
2026	17,881
Thereafter	180
Total time deposits	$	1,290,862

Months to Maturities of Time Deposits

The Company's time deposits of less than $250,000 represented 8.6% of total deposits and time deposits of $250,000 or more represented 3.6% of total deposits at December 31, 2021 and are presented by maturity in the following table:

	Months to Maturity
(In thousands)	3 or Less		Over 3 to 6		Over 6 to 12		Over 12		Total
Time deposits - less than $250,000	$	277,975	$	226,476	$	215,245	$	190,768	$	910,464
Time deposits - $250,000 or more	$	88,510	$	93,719	$	100,207	$	97,962	$	380,398

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BORROWINGS (Tables)

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Schedule of Subordinated Borrowing

The following table provides information on subordinated debentures for the period indicated:

(In thousands)	2021		2020
Fixed to floating rate sub debt, 4.25%	$	175,000	$	175,000
WashingtonFirst sub debt	—		25,000
Revere fixed to floating rate sub debt	—		31,000
Total subordinated debt	175,000		231,000
Less: Subordinated debt held as investments by Sandy Spring	—		(3,000)
Add: Purchase accounting premium	—		1,669
Less: Debt issuance costs	(2,288)		(2,581)
Net subordinated debt	172,712		227,088
Long-term borrowings	$	172,712	$	227,088

Retail Repurchase Agreements and Federal Funds Purchased

Information relating to retail repurchase agreements and federal funds purchased is presented in the following table at and for the years ending December 31:

	2021				2020
(Dollars in thousands)	Amount		Rate		Amount		Rate
End of period:
Retail repurchase agreements	$	141,086	0.12	%	$	153,157	0.11	%
Federal funds purchased	—		—		390,000		0.10
Average for the year:
Retail repurchase agreements	$	143,734	0.12	%	$	142,283	0.32	%
Federal funds purchased	15,154		0.08		367,240		0.41
Maximum month-end balance:
Retail repurchase agreements	$	154,413			$	153,157
Federal funds purchased	60,000				921,289

Advances from the FHLB and the Respective Maturity Schedule

Advances from the FHLB and the respective maturity schedule at December 31 for the years indicated consisted of the following:

	2021				2020
(Dollars in thousands)	Amounts		Weighted Average Rate		Amounts		Weighted Average Rate
Maturity:
One year	$	—	—	%	$	230,243	2.39	%
Two years	—		—		76,332		2.37
Three years	—		—		72,500		3.12
Four years	—		—		—		—
Five years	—		—		—		—
After five years	—		—		—		—
Total advances from FHLB	$	—	—		$	379,075	2.52

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SHARE BASED COMPENSATION (Tables)

12 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Abstract]

Summary of Share Option Activity

A summary of share option activity for the period indicated is reflected in the following table:

	Number of Common Shares	Weighted Average Exercise Share Price		Weighted Average Contractual Remaining Life (Years)	Aggregate Intrinsic Value (in thousands)
Balance at January 1, 2021	430,038	$	14.97		$	6,828
Granted	—	$	—
Exercised	(270,297)	$	13.67		$	7,979
Forfeited	—	$	—
Expired	—	$	—
Balance at December 31, 2021	159,741	$	17.18	2.4 years	$	5,264
Exercisable at December 31, 2021	159,741	$	17.18	2.4 years	$	5,264

Summary of Activity for Company's Restricted Stock

A summary of the activity for the Company’s restricted stock for the period indicated is presented in the following table:

(In dollars, except share data):	Number of Common Shares	Weighted Average Grant-Date Fair Value
Restricted stock at January 1, 2021	391,683	$	29.50
Granted	128,557	$	41.05
Vested	(119,228)	$	31.48
Forfeited/ cancelled	(10,492)	$	31.93
Restricted stock at December 31, 2021	390,520	$	32.67

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PENSION, PROFIT SHARING, AND OTHER EMPLOYEE BENEFIT PLANS (Tables)

12 Months Ended

Dec. 31, 2021

Retirement Benefits [Abstract]

The Plan's Funded Status

The Pension Plan’s funded status at December 31 is as follows:

(In thousands)	2021		2020
Reconciliation of Projected Benefit Obligation:
Projected obligation at January 1	$	52,426	$	45,497
Interest cost	1,269		1,437
Actuarial (gain)/ loss	(22)		290
Benefit payments	(1,115)		(1,470)
Increase/ (decrease) related to change in assumptions	(2,040)		6,672
Settlement - lump sum payments	(2,439)		—
Projected obligation at December 31	48,079		52,426
Reconciliation of Fair Value of Plan Assets:
Fair value of plan assets at January 1	48,357		43,457
Actual return on plan assets	(596)		6,370
Employer contributions	1,000		—
Benefit payments	(1,115)		(1,470)
Settlement - lump sum payments	(2,439)		—
Fair value of plan assets at December 31	$	45,207	$	48,357
Funded status at December 31	$	(2,872)	$	(4,069)
Accumulated benefit obligation at December 31	$	48,079	$	52,426
Unrecognized net actuarial loss	$	11,030	$	12,719
Net periodic pension cost not yet recognized	$	11,030	$	12,719

Weighted-Average Assumptions Used To Determine Benefit Obligations

Weighted average assumptions used to determine benefit obligations at December 31 are presented in the following table:

	2021	2020	2019
Discount rate	2.80%	2.50%	3.25%
Rate of compensation increase	N/A	N/A	N/A

Net Periodic Benefit Cost

The components of net periodic benefit cost for the years ended December 31 are presented in the following table:

(In thousands)	2021		2020		2019
Interest cost on projected benefit obligation	$	1,269	$	1,437	$	1,609
Expected return on plan assets	(1,247)		(1,821)		(1,647)
Recognized net actuarial loss	909		874		1,059
Settlement charge	560		—		—
Net periodic benefit cost	$	1,491	$	490	$	1,021

Weighted-Average Assumptions Used To Determine Net Periodic Benefit Cost

Weighted average assumptions used to determine net periodic benefit cost for years ended December 31 are presented in the following table:

	2021	2020	2019
Discount rate	2.50%	3.25%	4.15%
Expected return on plan assets	3.25%	4.75%	5.00%
Rate of compensation increase	N/A	N/A	N/A

Components Of Net Unrecognized Benefits Costs That Is Reflected In Accumulated Other Comprehensive Income (Loss)

Reclassifications represent the portion of the unrecognized benefits that are recognized each period as a component of the net periodic benefit cost.

(In thousands)	Unrecognized Net Loss
Included in accumulated other comprehensive loss at January 1, 2019	$	12,352
Reductions during the year	(5,176)
Reclassifications due to recognition as net periodic pension cost	(1,059)
Increase related to change in assumptions	5,060
Included in accumulated other comprehensive loss as of December 31, 2019	11,177
Reductions during the year	(4,256)
Reclassifications due to recognition as net periodic pension cost	(874)
Increase related to change in assumptions	6,672
Included in accumulated other comprehensive loss as of December 31, 2020	12,719
Additions during the year	1,842
Reclassifications due to recognition as net periodic pension cost	(909)
Settlement charge	(560)
Decrease related to change in assumptions	(2,062)
Included in accumulated other comprehensive loss as of December 31, 2021	11,030
Applicable tax effect	(2,827)
Included in accumulated other comprehensive loss net of tax effect at December 31, 2021	$	8,203
Amount expected to be recognized as part of net periodic pension cost in the next fiscal year	$	674

Component of Net Periodic Benefit

The following items have not yet been recognized as a component of net periodic benefit cost at December 31:

(In thousands)	2021		2020		2019
Net actuarial loss	$	11,030	$	12,719	$	11,177
Net periodic benefit cost not yet recognized	$	11,030	$	12,719	$	11,177

Pension Plan Weighted Average Allocations

The Company’s Pension Plan weighted average allocations at December 31 are presented in the following table:

	2021		2020
Asset Category:
Equity Securities Mutual Funds	11.5	%	11.6	%
Fixed Income Mutual Funds	88.5	%	88.4	%
Total pension plan assets	100.0	%	100.0	%

Fair Values Of Pension Plan Assets By Asset Category

The fair values of the Company’s Pension Plan assets by asset category at December 31 are presented in the following tables:

	2021
(In thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Asset Category:
Mutual funds:
Large cap U.S. equity funds	$	2,231	$	575	$	—	$	2,806
Small/Mid cap U.S. equity funds	—		1,536		—		1,536
International equity funds	875		—		—		875
Short-term fixed income funds	9,558		30,432		—		39,990
Total mutual funds	12,664		32,543		—		45,207
Total pension plan assets	$	12,664	$	32,543	$	—	$	45,207

	2020
(In thousands)	Quoted Prices In Active Markets for  Identical Assets  (Level 1)		Significant Other  Observable  Inputs  (Level 2)		Significant Unobservable  Inputs  (Level 3)		Total
Asset Category:
Mutual funds:
Large cap U.S. equity funds	$	2,779	$	543	$	—	$	3,322
Small/Mid cap U.S. equity funds	—		1,124		—		1,124
International equity funds	1,183		—		—		1,183
Short-term fixed income funds	—		4,299		—		4,299
Fixed income funds	10,724		27,705		—		38,429
Total mutual funds	14,686		33,671		—		48,357
Total pension plan assets	$	14,686	$	33,671	$	—	48,357

Schedule of Benefit Payments

Benefit payments, which reflect expected future service, as appropriate, that are expected to be paid for the years ending December 31 are presented in the following table:

(In thousands)	Pension Benefits
2022	$	3,210
2023	1,990
2024	3,240
2025	2,330
2026	3,160
Thereafter	14,540

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OTHER NON-INTEREST INCOME AND OTHER NON-INTEREST EXPENSE (Tables)

12 Months Ended

Dec. 31, 2021

Other Income and Expenses [Abstract]

Selected Components of Other Non-Interest Income and Other Non-Interest Expense

Selected components of other non-interest income and other non-interest expense for the years ended December 31 are presented in the following table:

(In thousands)	2021		2020		2019
Letter of credit fees	$	910	$	710	$	389
Extension fees	811		1,967		1,287
Swap fee income	511		1,607		1,932
Prepayment penalty fees	3,216		961		404
Other income	9,869		3,976		4,768
Total other non-interest income	$	15,317	$	9,221	$	8,780

(In thousands)	2021		2020		2019
Postage and delivery	$	1,906	$	1,624	$	1,502
Communications	2,508		2,729		2,414
Loss on FHLB redemption	9,117		5,928		—
Mortgage processing expense, net	1,504		1,381		817
Online services	2,209		1,591		1,375
Provision for credit losses on unfunded loan commitments	(1,236)		1,576		—
Franchise taxes	1,644		1,574		1,307
Insurance	1,586		1,311		1,113
Card transaction expense	1,183		1,083		1,031
Office supplies	742		912		957
Other expenses	13,229		10,894		9,910
Total other non-interest expense	$	34,392	$	30,603	$	20,426

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INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Components of Income Tax Expense (Benefit)

The following table provides the components of income tax expense for the years ended December 31:

(In thousands)	2021		2020		2019
Current income taxes:
Federal	$	48,445	$	43,115	$	28,404
State	15,850		13,785		6,598
Total current	64,295		56,900		35,002
Deferred income taxes:
Federal	9,634		(22,793)		234
State	2,623		(6,636)		1,192
Total deferred	12,257		(29,429)		1,426
Total income tax expense	$	76,552	$	27,471	$	36,428

Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities, shown as the sum of the appropriate tax effect for each significant type of temporary difference, are presented in the following table at December 31 for the years indicated:

(In thousands)	2021		2020
Deferred tax assets:
Allowance for credit losses	$	27,980	$	42,231
Lease liability	17,280		19,192
Employee benefits	7,740		6,108
Unrealized losses on pension plan	2,827		3,249
Deferred loan fees and costs	3,879		4,486
Equity based compensation	1,636		1,856
Unrealized losses on investments available-for-sale	121		—
Losses on other real estate owned	21		203
Other than temporary impairment	76		75
Loan and deposit premium/discount	553		1,081
Reserve for recourse loans	223		546
Net operating loss carryforward	2,023		1,475
Other	207		181
Gross deferred tax assets	64,566		80,683
Valuation allowance	(2,137)		(1,479)
Net deferred tax asset	62,429		79,204
Deferred tax liabilities:
Right of use asset	(14,888)		(16,693)
Unrealized gains on investments available-for-sale	—		(9,684)
Pension plan costs	(2,092)		(2,211)
Depreciation	(2,552)		(2,950)
Intangible assets	(5,653)		(6,894)
Bond accretion	(78)		(195)
Section 481 adjustments	—		(669)
Fair value acquisition adjustments	(624)		(555)
Other	(626)		(567)
Gross deferred tax liabilities	(26,513)		(40,418)
Net deferred tax asset	$	35,916	$	38,786

Reconcilements Between Statutory Federal Income Tax Rate and Effective Tax Rate

The reconcilements between the statutory federal income tax rate and the effective rate for the years ended December 31 are presented in the following table:

(Dollars in thousands)	2021				2020				2019
	Amount		Percentage of Pre-Tax Income		Amount		Percentage of Pre-Tax Income		Amount		Percentage of Pre-Tax Income
Income tax expense at federal statutory rate	$	65,448	21.0	%	$	26,130	21.0	%	$	32,101	21.0	%
Increase/ (decrease) resulting from:
Tax exempt income, net	(2,271)		(0.7)		(2,472)		(2.0)		(2,101)		(1.4)
Bank-owned life insurance	(602)		(0.2)		(567)		(0.5)		(665)		(0.4)
State income taxes, net of federal income tax benefits	14,593		4.7		5,648		4.5		6,154		4.0
Federal tax law change	—		—		(1,764)		(1.4)		—		—
Other, net	(616)		(0.2)		496		0.5		939		0.6
Total income tax expense and rate	$	76,552	24.6	%	$	27,471	22.1	%	$	36,428	23.8	%

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NET INCOME PER COMMON SHARE (Tables)

12 Months Ended

Dec. 31, 2021

Earnings Per Share [Abstract]

Calculation of Net Income Per Common Share

The calculation of net income per common share for the years ended December 31 is presented in the following table:

(Dollars and amounts in thousands, except per share data)	2021		2020		2019
Net income	$	235,107	$	96,953	$	116,433
Less: Distributed and undistributed earnings allocated to participating securities	(1,508)		(783)		(762)
Net income attributable to common shareholders	$	233,599	$	96,170	$	115,671
Total weighted average outstanding shares	46,995		44,312		35,797
Less: Weighted average participating securities	(304)		(365)		(235)
Basic weighted average common shares	46,691		43,947		35,562
Dilutive weighted average common stock equivalents	208		185		56
Diluted weighted average common shares	46,899		44,132		35,618
Basic net income per common share	$	5.00	$	2.19	$	3.25
Diluted net income per common share	$	4.98	$	2.18	$	3.25
Anti-dilutive shares	—		17		9

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ACCUMULATED OTHER COMPREHENSIVE INCOME/ (LOSS) (Tables)

12 Months Ended

Dec. 31, 2021

Equity [Abstract]

Net Accumulated Other Comprehensive Loss

The following table presents the activity in net accumulated other comprehensive income/ (loss) for the periods indicated:

(In thousands)	Unrealized Gains/ (Losses) on Investments Available-for-Sale		Defined Benefit Pension Plan		Total
Balance at January 1, 2019	$	(6,630)	$	(9,124)	$	(15,754)
Period change, net of tax	10,630		792		11,422
Balance at December 31, 2019	4,000		(8,332)		(4,332)
Period change, net of tax	24,175		(1,138)		23,037
Balance at December 31, 2020	28,175		(9,470)		18,705
Period change, net of tax	(28,511)		1,267		(27,244)
Balance at December 31, 2021	$	(336)	$	(8,203)	$	(8,539)

Reclassification Adjustments Out of Accumulated Other Comprehensive Income

The following table provides the information on the reclassification adjustments out of accumulated other comprehensive income/ (loss) for the periods indicated:

	Year Ended December 31,
(In thousands)	2021		2020		2019
Unrealized gains/ (losses) on investments available-for-sale:
Affected line item in the Consolidated Statements of Income:
Investment securities gains	$	212	$	467	$	77
Income before taxes	212		467		77
Tax expense	(54)		(120)		(20)
Net income	$	158	$	347	$	57
Amortization of defined benefit pension plan items:
Affected line item in the Consolidated Statements of Income:
Recognized actuarial loss (1)	$	(909)	$	(874)	$	(1,059)
Settlement charge (1)	(560)		—		—
Income before taxes	(1,469)		(874)		(1,059)
Tax benefit	376		223		277
Net loss	$	(1,093)	$	(651)	$	(782)

(1)This amount is included in the computation of net periodic benefit cost, see Note 14.

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DERIVATIVES (Tables)

12 Months Ended

Dec. 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of Interest Rate Swaps

A summary of the Company’s interest rate swaps at December 31 for the years indicated is included in the following table:

	2021
(Dollars in thousands)	Notional Amount		Estimated Fair Value		Years to Maturity	Receive Rate		Pay Rate
Interest rate swap agreements:
Pay fixed/receive variable swaps	$	198,126	$	(5,880)	8.7 years	2.21	%	3.73	%
Pay variable/receive fixed swaps	198,126		5,880		8.7 years	3.73	%	2.21	%
Total swaps	$	396,252	$	—	8.7 years	2.97	%	2.97	%

	2020
(Dollars in thousands)	Notional Amount		Estimated Fair Value		Years to Maturity	Receive Rate		Pay Rate
Interest rate swap agreements:
Pay fixed/receive variable swaps	$	160,261	$	(9,183)	8.7 years	2.39	%	3.72	%
Pay variable/receive fixed swaps	160,261		9,183		8.7 years	3.72	%	2.39	%
Total swaps	$	320,522	$	—	8.7 years	3.06	%	3.06	%

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FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK (Tables)

12 Months Ended

Dec. 31, 2021

Condensed Financial Information Disclosure [Abstract]

Summary of Financial Instruments With Off-Balance Sheet Credit Risk

A summary of the financial instruments with off-balance sheet credit risk is as follows at December 31 for the years indicated:

(In thousands)	2021		2020
Commercial real estate development and construction	$	621,725	$	871,290
Residential real estate-development and construction	885,806		94,096
Real estate-residential mortgage	54,072		335,288
Lines of credit, principally home equity and business lines	2,096,874		1,947,706
Standby letters of credit	70,642		71,777
Total commitments to extend credit and available credit lines	$	3,729,119	$	3,320,157

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FAIR VALUE (Tables)

12 Months Ended

Dec. 31, 2021

Fair Value Disclosures [Abstract]

Schedule of Financial Assets and Liabilities Accounted for or Disclosed at Fair Value

The following tables set forth the Company’s financial assets and liabilities at the December 31 for the years indicated that were accounted for or disclosed at fair value. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement:

	2021
(In thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Assets
Residential mortgage loans held for sale (1)	$	—	$	39,409	$	—	$	39,409
Investments available-for-sale:
U.S. government agencies	—		68,539		—		68,539
State and municipal	—		326,402		—		326,402
Mortgage-backed and asset-backed	—		1,070,955		—		1,070,955
Corporate debt	—		—		—		—
Total available-for-sale securities	—		1,465,896		—		1,465,896
Interest rate swap agreements	—		5,880		—		5,880
Total assets	$	—	$	1,511,185	$	—	$	1,511,185
Liabilities
Interest rate swap agreements	$	—	$	(5,880)	$	—	$	(5,880)
Total liabilities	$	—	$	(5,880)	$	—	$	(5,880)

(1)The outstanding principal balance for residential loans held for sale as of December 31, 2021 was $38.2 million.

	2020
(In thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Assets
Residential mortgage loans held for sale (1)	$	—	$	78,294	$	—	$	78,294
Investments available-for-sale:
U.S. government agencies	—		43,297		—		43,297
State and municipal	—		390,367		—		390,367
Mortgage-backed and asset-backed	—		904,432		—		904,432
Corporate debt	—		—		9,925		9,925
Total available-for-sale securities	—		1,338,096		9,925		1,348,021
Interest rate swap agreements	—		9,183		—		9,183
Total assets	$	—	$	1,425,573	$	9,925	$	1,435,498
Liabilities
Interest rate swap agreements	$	—	$	(9,183)	$	—	$	(9,183)
Total liabilities	$	—	$	(9,183)	$	—	$	(9,183)

(1)The outstanding principal balance for residential loans held for sale as of December 31, 2020 was $75.5 million.

Activity of Assets Reported as Level 3

The following table provides activity of assets reported as Level 3 for the period indicated:

	Significant
	Unobservable
	Inputs
(In thousands)	(Level 3)
Investments available-for-sale:
Balance at January 1, 2021	$	9,925
Transfer into Level 3 assets	—
Additions of Level 3 assets	—
Sales of Level 3 assets	(9,925)
Balance at December 31, 2021	$	—

Assets Measured at Fair Value on Nonrecurring Basis

The following tables set forth the Company’s financial assets subject to fair value adjustments on a non-recurring basis at December 31 for the year indicated that are valued at the lower of cost or market. Assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement:

	2021
(In thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total		Total Losses
Loans (1)	$	—	$	—	$	404	$	404	$	(1,353)
Other real estate owned	—		—		1,034		1,034		(81)
Total	$	—	$	—	$	1,438	$	1,438	$	(1,434)

(1)Amounts represent the fair value of collateral for collateral dependent non-accrual loans allocated to the allowance for credit losses. Fair values are determined using actual market prices (Level 2), independent third party valuations and borrower records, discounted as appropriate (Level 3).

	2020
(In thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total		Total Losses
Loans (1)	$	—	$	—	$	13,901	$	13,901	$	(11,326)
Other real estate owned	—		—		1,455		1,455		(286)
Total	$	—	$	—	$	15,356	$	15,356	$	(11,612)

(1)Amounts represent the fair value of collateral for collateral dependent non-accrual loans allocated to the allowance for credit losses. Fair values are determined using actual market prices (Level 2), independent third party valuations and borrower records, discounted as appropriate (Level 3).

Carrying Amounts And Fair Values of Company's Financial Instruments

The carrying amounts and fair values of the Company’s financial instruments at December 31 for the year indicated are presented in the following table:

					Fair Value Measurements
	2021				Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
(In thousands)	Carrying Amount		Estimated Fair Value
Financial assets:
Cash and cash equivalents	$	420,020	$	420,020	$	420,020	$	—	$	—
Residential mortgage loans held for sale	39,409		39,409		—		39,409		—
Investments available-for-sale	1,465,896		1,465,896		—		1,465,896		—
Equity securities	41,166		41,166		41,166		—		—
Loans, net of allowance	9,857,946		9,964,924		—		—		9,964,924
Interest rate swap agreements	5,880		5,880		—		5,880		—
Accrued interest receivable	34,349		34,349		34,349		—		—
Bank owned life insurance	147,528		147,528		—		147,528		—
Financial liabilities:
Time deposits	$	1,290,862	$	1,292,598	$	—	$	1,292,598	$	—
Other deposits	9,333,869		9,333,869		9,333,869		—		—
Securities sold under retail repurchase agreements and
federal funds purchased	141,086		141,086		—		141,086		—
Advances from FHLB	—		—		—		—		—
Subordinated debt	172,712		175,780		—		—		175,780
Interest rate swap agreements	5,880		5,880		—		5,880		—
Accrued interest payable	1,516		1,516		1,516		—		—

					Fair Value Measurements
	2020				Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
(In thousands)	Carrying Amount		Estimated Fair Value
Financial assets:
Cash and cash equivalents	$	297,003	$	297,003	$	297,003	$	—	$	—
Residential mortgage loans held for sale	78,294		78,294		—		78,294		—
Investments available-for-sale	1,348,021		1,348,021		—		1,338,096		9,925
Equity securities	65,760		65,760		65,760		—		—
Loans, net of allowance	10,235,142		10,336,355		—		—		10,336,355
Interest rate swap agreements	9,183		9,183		—		9,183		—
Accrued interest receivable	46,431		46,431		46,431		—		—
Bank owned life insurance	126,887		126,887		—		126,887		—
Financial liabilities:
Time deposits	$	1,657,662	$	1,674,112	$	—	$	1,674,112	$	—
Other deposits	8,375,407		8,375,407		8,375,407		—		—
Securities sold under retail repurchase agreements and
federal funds purchased	543,157		543,157		—		543,157		—
Advances from FHLB	379,075		390,593		—		390,593		—
Subordinated debt	227,088		227,512		—		—		227,512
Interest rate swap agreements	9,183		9,183		—		9,183		—
Accrued interest payable	3,254		3,254		3,254		—		—

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PARENT COMPANY FINANCIAL INFORMATION (Tables)

12 Months Ended

Dec. 31, 2021

Condensed Financial Information Disclosure [Abstract]

Statements of Condition

Financial statements for Sandy Spring Bancorp, Inc. (Parent Only) for the periods indicated are presented in the following tables:

Statements of Condition

	December 31,
(In thousands)	2021		2020
Assets:
Cash and cash equivalents	$	69,038	$	63,943
Investments available-for-sale (at fair value)	—		9,925
Equity securities	568		568
Investment in subsidiary	1,620,432		1,589,483
Goodwill	1,292		1,292
Other assets	2,255		2,684
Total assets	$	1,693,585	$	1,667,895
Liabilities:
Subordinated debt	$	172,712	$	196,454
Accrued expenses and other liabilities	1,194		1,486
Total liabilities	173,906		197,940
Stockholders’ Equity:
Common stock	45,119		47,057
Additional paid in capital	751,072		846,922
Retained earnings	732,027		557,271
Accumulated other comprehensive income/ (loss)	(8,539)		18,705
Total stockholders’ equity	1,519,679		1,469,955
Total liabilities and stockholders’ equity	$	1,693,585	$	1,667,895

Statements of Income

Statements of Income

	Year Ended December 31,
(In thousands)	2021		2020		2019
Income:
Cash dividends from subsidiary	$	189,172	$	74,410	$	42,625
Other income	434		932		1,093
Total income	189,606		75,342		43,718
Expenses:
Interest	6,765		9,028		3,141
Other expenses	1,592		1,505		1,507
Total expenses	8,357		10,533		4,648
Income before income taxes and equity in undistributed income of subsidiary	181,249		64,809		39,070
Income tax benefit	(1,563)		(1,988)		(734)
Income before equity in undistributed income of subsidiary	182,812		66,797		39,804
Equity in undistributed income of subsidiary	52,295		30,156		76,629
Net income	$	235,107	$	96,953	$	116,433

Statements of Cash Flows

Statements of Cash Flows

	Year Ended December 31,
(In thousands)	2021		2020		2019
Cash Flows from Operating Activities:
Net income	$	235,107	$	96,953	$	116,433
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed income-subsidiary	(52,295)		(30,156)		(76,629)
Share based compensation expense	5,299		3,850		3,042
Tax benefit from stock options exercised	—		5		7
Other-net	4,133		(9,732)		—
Net cash provided by operating activities	192,244		60,920		42,853
Cash Flows from Investing Activities:
Proceeds from sales of investment available-for-sale	9,099		310		—
Investment in subsidiary	—		—		(85,000)
Net cash provided by/ (used in) investing activities	9,099		310		(85,000)
Cash Flows from Financing Activities:
Retirement of subordinated debt	(32,810)		(10,310)		—
Proceeds from issuance of subordinated debt	—		—		175,000
Proceeds from issuance of common stock	5,758		1,997		1,433
Stock tendered for payment of withholding taxes	(1,577)		(458)		(703)
Repurchase of common stock	(107,268)		(25,702)		(24,284)
Dividends paid	(60,351)		(53,175)		(42,272)
Net cash provided by/ (used in) financing activities	(196,248)		(87,648)		109,174
Net increase/ (decrease) in cash and cash equivalents	5,095		(26,418)		67,027
Cash and cash equivalents at beginning of year	63,943		90,361		23,334
Cash and cash equivalents at end of year	$	69,038	$	63,943	$	90,361

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REGULATORY MATTERS (Tables)

12 Months Ended

Dec. 31, 2021

Banking and Thrift, Interest [Abstract]

Schedule of Actual Capital Amounts and Ratios

The Company's and the Bank's actual capital amounts and ratios at December 31 for the years indicated are presented in the following table:

	Actual				For Capital Adequacy Purposes				To be Well Capitalized Under Prompt Corrective Action Provisions
(Dollars in thousands)	Amount		Ratio		Amount		Ratio		Amount		Ratio
As of December 31, 2021
Tier 1 Leverage:
Company	$	1,149,694	9.26	%	$	496,520	4.00	%	N/A		N/A
Sandy Spring Bank	$	1,251,739	10.09	%	$	496,171	4.00	%	$	620,214	5.00	%
Common Equity Tier 1 Capital to risk-
weighted assets:
Company	$	1,149,694	11.91	%	$	434,466	4.50	%	N/A		N/A
Sandy Spring Bank	$	1,251,739	12.98	%	$	433,889	4.50	%	$	626,729	6.50	%
Tier 1 Capital to risk-weighted assets:
Company	$	1,149,694	11.91	%	$	579,288	6.00	%	N/A		N/A
Sandy Spring Bank	$	1,251,739	12.98	%	$	578,519	6.00	%	$	771,358	8.00	%
Total Capital to risk-weighted assets:
Company	$	1,408,808	14.59	%	$	772,384	8.00	%	N/A		N/A
Sandy Spring Bank	$	1,335,853	13.85	%	$	771,358	8.00	%	$	964,198	10.00	%
As of December 31, 2020
Tier 1 Leverage:
Company	$	1,078,213	8.92	%	$	483,619	4.00	%	N/A		N/A
Sandy Spring Bank	$	1,199,570	9.93	%	$	483,175	4.00	%	$	603,969	5.00	%
Common Equity Tier 1 Capital to risk-
weighted assets:
Company	$	1,078,213	10.58	%	$	458,612	4.50	%	N/A		N/A
Sandy Spring Bank	$	1,199,570	11.79	%	$	457,920	4.50	%	$	661,441	6.50	%
Tier 1 Capital to risk-weighted assets:
Company	$	1,078,213	10.58	%	$	611,483	6.00	%	N/A		N/A
Sandy Spring Bank	$	1,199,570	11.79	%	$	610,561	6.00	%	$	814,081	8.00	%
Total Capital to risk-weighted assets:
Company	$	1,419,973	13.93	%	$	815,311	8.00	%	N/A		N/A
Sandy Spring Bank	$	1,347,102	13.24	%	$	814,081	8.00	%	$	1,017,601	10.00	%

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SEGMENT REPORTING (Tables)

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Operating Segments and Reconciliation of Information to Consolidated Financial Statements

Information for the operating segments and reconciliation of the information to the consolidated financial statements for the years ended December 31 is presented in the following tables:

	2021
(In thousands)	Community Banking		Insurance		Investment Management		Inter-Segment Elimination		Total
Interest income	$	450,284	$	2	$	10	$	(12)	$	450,284
Interest expense	25,778		—		—		(12)		25,766
Provision for credit losses	(45,556)		—		—		—		(45,556)
Non-interest income	80,077		7,011		22,378		(7,411)		102,055
Non-interest expenses	240,996		5,869		14,473		(868)		260,470
Income before income taxes	309,143		1,144		7,915		(6,543)		311,659
Income tax expense	74,036		339		2,177		—		76,552
Net income	$	235,107	$	805	$	5,738	$	(6,543)	$	235,107
Assets	$	12,590,176	$	9,110	$	59,099	$	(67,659)	$	12,590,726
	2020
(In thousands)	Community Banking		Insurance		Investment Management		Inter-Segment Elimination		Total
Interest income	$	423,560	$	6	$	7	$	(13)	$	423,560
Interest expense	60,414		—		—		(13)		60,401
Provision for credit losses	85,669		—		—		—		85,669
Non-interest income	78,940		6,810		17,831		(865)		102,716
Non-interest expenses	237,910		5,686		13,051		(865)		255,782
Income before income taxes	118,507		1,130		4,787		—		124,424
Income tax expense	25,907		313		1,251		—		27,471
Net income	$	92,600	$	817	$	3,536	$	—	$	96,953
Assets	$	12,800,537	$	11,335	$	57,768	$	(71,211)	$	12,798,429
	2019
(In thousands)	Community Banking		Insurance		Investment Management		Inter-Segment Elimination		Total
Interest income	$	347,867	$	26	$	13	$	(37)	$	347,869
Interest expense	82,598		—		—		(37)		82,561
Provision for credit losses	4,684		—		—		—		4,684
Non-interest income	55,042		6,621		10,326		(667)		71,322
Non-interest expenses	166,802		5,731		7,219		(667)		179,085
Income before income taxes	148,825		916		3,120		—		152,861
Income tax expense	35,350		258		820		—		36,428
Net income	$	113,475	$	658	$	2,300	$	—	$	116,433
Assets	$	8,624,590	$	10,340	$	16,424	$	(22,352)	$	8,629,002

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SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details)	12 Months Ended
	Dec. 31, 2021
Maximum
Property, Plant and Equipment [Line Items]
Finite-lived intangible asset, useful life	15 years
Furniture and Fixtures | Minimum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	3 years
Furniture and Fixtures | Maximum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	10 years
Computer Equipment | Minimum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	3 years
Computer Equipment | Maximum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	5 years
Building and Building Improvements | Minimum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	10 years
Building and Building Improvements | Maximum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	40 years

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ACQUISITION OF REVERE BANK - Narrative (Details) $ / shares in Units, $ in Thousands	Mar. 31, 2021 USD ($) $ / shares	Mar. 31, 2020 USD ($) bank	Dec. 31, 2020 USD ($)	Apr. 01, 2020 USD ($) $ / shares shares
Business Acquisition [Line Items]
Amount of goodwill recognized			$ 500	$ 800
Sandy Spring Shareholders
Business Acquisition [Line Items]
Percentage of ownership in combined company				74.00%
Revere shareholders
Business Acquisition [Line Items]
Percentage of ownership in combined company				26.00%
Revere Bank
Business Acquisition [Line Items]
Business acquisition rate of share exchange (in shares) | shares				1.05
Closing price (in dollars per share) | $ / shares	$ 22.64			$ 22.64
Consideration transferred	$ 293,002	$ 293,000
Assets acquired	2,846,356
Number of banking offices | bank		11
Amount of goodwill recognized	$ 515

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ACQUISITION OF REVERE BANK - Fair values of acquired identifiable assets and liabilities assumed (Details) - USD ($) $ / shares in Units, $ in Thousands			12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020	Apr. 01, 2020
Purchase price:
Fair value of common shares issued (12,768,949 shares) based on Sandy Spring's share price of $22.64			$ 289,089
Identifiable liabilities:
Goodwill			$ 500	$ 800
Revere Bank acquisition (in shares)	12,768,949		12,768,949
Revere Bank
Purchase price:
Fair value of common shares issued (12,768,949 shares) based on Sandy Spring's share price of $22.64	$ 289,089
Fair value of Revere stock options converted to Sandy Spring stock options	3,611
Cash paid for cashed-out Revere stock options	291
Cash for fractional shares	11
Total purchase price	293,002	$ 293,000
Identifiable assets:
Cash and cash equivalents	80,744
Investments available-for-sale	180,752
Loans	2,502,244
Premises and equipment	3,443
Accrued interest receivable	7,651
Core deposit intangible asset	18,360
Other assets	53,162
Total identifiable assets	2,846,356
Identifiable liabilities:
Deposits	2,322,422
Borrowings	205,514
Other liabilities	25,933
Total identifiable liabilities	2,553,869
Fair value of net assets acquired including identifiable intangible assets	292,487
Goodwill	$ 515
Closing price (in dollars per share)	$ 22.64			$ 22.64

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CASH AND DUE FROM BANKS (Narrative) (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Cash and Cash Equivalents [Abstract]
Compensating balance	$ 491.9	$ 236.3

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INVESTMENTS - Amortized Cost and Estimated Fair Values of Investments Available-for-sale (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Debt Securities, Available-for-sale [Line Items]
Total available-for-sale debt securities	$ 1,466,350	$ 1,310,159
Investments available-for-sale:	1,465,896	1,348,021
Available-for-Sale Securities
Debt Securities, Available-for-sale [Line Items]
Total available-for-sale debt securities	1,466,350	1,310,159
Gross Unrealized Gains	14,966	38,922
Gross Unrealized Losses	(15,420)	(1,060)
Investments available-for-sale:	1,465,896	1,348,021
Available-for-Sale Securities | U.S. treasuries and government agencies
Debt Securities, Available-for-sale [Line Items]
Total available-for-sale debt securities	68,487	42,750
Gross Unrealized Gains	202	549
Gross Unrealized Losses	(150)	(2)
Investments available-for-sale:	68,539	43,297
Available-for-Sale Securities | State and municipal
Debt Securities, Available-for-sale [Line Items]
Total available-for-sale debt securities	323,286	377,108
Gross Unrealized Gains	6,561	13,470
Gross Unrealized Losses	(3,445)	(211)
Investments available-for-sale:	326,402	390,367
Available-for-Sale Securities | Mortgage-backed and asset-backed
Debt Securities, Available-for-sale [Line Items]
Total available-for-sale debt securities	1,074,577	881,201
Gross Unrealized Gains	8,203	24,078
Gross Unrealized Losses	(11,825)	(847)
Investments available-for-sale:	1,070,955	904,432
Available-for-Sale Securities | Corporate debt
Debt Securities, Available-for-sale [Line Items]
Total available-for-sale debt securities	0	9,100
Gross Unrealized Gains	0	825
Gross Unrealized Losses	0	0
Investments available-for-sale:	$ 0	$ 9,925

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INVESTMENTS - Narrative (Detail) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Schedule of Investments [Line Items]
Investments available-for-sale book value	$ 531.6	$ 465.7
GNMA, FNMA, and FHLMC | Collateralized mortgage obligations
Schedule of Investments [Line Items]
Mortgage-backed securities	364.4
GNMA, FNMA, and FHLMC | Mortgage-backed securities
Schedule of Investments [Line Items]
Mortgage-backed securities	652.0
GNMA, FNMA, and FHLMC | SBA asset-backed securities
Schedule of Investments [Line Items]
Mortgage-backed securities	$ 54.6

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INVESTMENTS - Gross Unrealized Losses and Fair Value by Length of Time of Available-For-Sale Securities (Detail) $ in Thousands	Dec. 31, 2021 USD ($) security	Dec. 31, 2020 USD ($) security
Debt Securities, Available-for-sale [Line Items]
Number of Securities | security	141	34
Fair Value
Less Than 12 Months	$ 778,714	$ 92,868
12 Months or More	59,597	76,879
Total	838,311	169,747
Unrealized Losses
Less Than 12 Months	12,583	367
12 Months or More	2,837	693
Total	$ 15,420	$ 1,060
U.S. treasuries and government agencies
Debt Securities, Available-for-sale [Line Items]
Number of Securities | security	5	2
Fair Value
Less Than 12 Months	$ 49,695	$ 25,369
12 Months or More	0	0
Total	49,695	25,369
Unrealized Losses
Less Than 12 Months	150	2
12 Months or More	0	0
Total	$ 150	$ 2
State and municipal
Debt Securities, Available-for-sale [Line Items]
Number of Securities | security	32	8
Fair Value
Less Than 12 Months	$ 63,206	$ 22,753
12 Months or More	21,740	0
Total	84,946	22,753
Unrealized Losses
Less Than 12 Months	2,288	211
12 Months or More	1,157	0
Total	$ 3,445	$ 211
Mortgage-backed and asset-backed
Debt Securities, Available-for-sale [Line Items]
Number of Securities | security	104	24
Fair Value
Less Than 12 Months	$ 665,813	$ 44,746
12 Months or More	37,857	76,879
Total	703,670	121,625
Unrealized Losses
Less Than 12 Months	10,145	154
12 Months or More	1,680	693
Total	$ 11,825	$ 847

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INVESTMENTS - Estimated Fair Values and Amortized Costs of Debt Securities Available-for-sale by Contractual Maturity (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Fair Value
Total available-for-sale debt securities	$ 1,465,896	$ 1,348,021
Amortized Cost
Total available-for-sale debt securities	1,466,350	1,310,159
U.S. treasuries and government agencies
Fair Value
One year or less	12,029	33,963
One to five years	56,510	9,334
Five to ten years	0	0
After ten years	0	0
Amortized Cost
One year or less	11,995	33,833
One to five years	56,492	8,917
Five to ten years	0	0
After ten years	0	0
State and municipal
Fair Value
One year or less	12,821	16,581
One to five years	27,408	44,910
Five to ten years	42,960	59,059
After ten years	243,213	269,817
Amortized Cost
One year or less	12,709	16,458
One to five years	26,637	43,857
Five to ten years	42,661	56,130
After ten years	241,279	260,663
Mortgage-backed and asset-backed
Fair Value
One year or less	9,272	1
One to five years	14,752	21,637
Five to ten years	388,918	74,142
After ten years	658,013	808,652
Amortized Cost
One year or less	9,239	1
One to five years	14,575	21,229
Five to ten years	390,569	72,481
After ten years	660,194	787,490
Corporate debt
Fair Value
One year or less	0	0
One to five years	0	2,318
Five to ten years	0	7,607
After ten years	0	0
Amortized Cost
One year or less	0	0
One to five years	0	2,100
Five to ten years	0	7,000
After ten years	$ 0	$ 0

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INVESTMENTS - Other Equity Securities (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Federal Home Loan Bank Stock and Federal Reserve Bank Stock [Abstract]
Federal Reserve Bank stock	$ 34,097	$ 38,650
Federal Home Loan Bank of Atlanta stock	6,392	26,433
Other equity securities	677	677
Total equity securities	$ 41,166	$ 65,760

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INVESTMENTS - Gross Realized Gains and Losses on All Investments (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Investments, Debt and Equity Securities [Abstract]
Gross realized gains from sales of investments available-for-sale	$ 3,588	$ 1,297	$ 14
Gross realized losses from sales of investments available-for-sale	(3,478)	(1,068)	(2)
Net gains from calls of investments available-for-sale	102	238	65
Net investment securities gains	$ 212	$ 467	$ 77

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LOANS - Narrative (Detail) - USD ($) $ in Thousands		12 Months Ended
	Apr. 01, 2020	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Loans and Leases Receivable Disclosure [Line Items]
Unearned income and deferred fees		$ 14,300	$ 24,500
Loans receivable with a gross amortized cost basis	$ 2,500,000
PCD Loans acquired	974,800
Initial allowance on Revere PCD loans	18,600	0	18,628	$ 0
Fair value premium	4,500
Total fair value of PCD loans as of the acquisition date	960,700
Non-PCD loans	1,500,000
Net fair value premium	$ 2,100
Paycheck Protection Program
Loans and Leases Receivable Disclosure [Line Items]
Unearned income and deferred fees		$ 4,600	$ 21,200

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LOANS - Loan Portfolio Segment Balances (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 9,967,091	$ 10,400,509
Commercial investor real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	4,141,346	3,634,720
Commercial owner-occupied real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	1,690,881	1,642,216
Commercial AD&C
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	1,088,094	1,050,973
Residential mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	937,570	1,105,179
Residential construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	197,652	182,619
Commercial real estate: | Commercial investor real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	4,141,346	3,634,720
Commercial real estate: | Commercial owner-occupied real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	1,690,881	1,642,216
Commercial real estate: | Commercial AD&C
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	1,088,094	1,050,973
Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	8,402,155	8,595,457
Commercial | Commercial business
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	1,481,834	2,267,548
Residential real estate: | Residential mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	937,570	1,105,179
Residential real estate: | Residential construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	197,652	182,619
Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	429,714	517,254
Total residential and consumer loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 1,564,936	$ 1,805,052

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LOANS - Summary of Loans to Related Parties (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Receivables [Abstract]
Balance at beginning of period	$ 96,005	$ 51,367
Additions	7,040	46,846
Repayments	(24,818)	(2,208)
Balance at end of period	$ 78,227	$ 96,005

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CREDIT QUALITY ASSESSMENT - Allowance for Credit Loss Activity (Detail) - USD ($) $ in Thousands		12 Months Ended
	Apr. 01, 2020	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of year		$ 165,367	$ 56,132	$ 53,486
Initial allowance on Revere PCD loans	$ 18,600	0	18,628	0
Provision/ (credit) for credit losses		(45,556)	85,669	4,684
Loan charge-offs		(12,313)	(1,819)	(2,668)
Loan recoveries		1,647	1,012	630
Net charge-offs		(10,666)	(807)	(2,038)
Balance at period end		109,145	165,367	56,132
Revision of Prior Period, Reclassification, Adjustment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of year		0	2,762	0
Balance at period end			0	2,762
Revision of Prior Period, Accounting Standards Update, Adjustment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of year		$ 0	2,983	0
Balance at period end			$ 0	$ 2,983

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CREDIT QUALITY ASSESSMENT - Collateral Dependent Loans Individually Evaluated for Credit Loss (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Credit Loss [Abstract]
Collateral dependent loans individually evaluated for credit loss with an allowance	$ 9,510	$ 20,717
Collateral dependent loans individually evaluated for credit loss without an allowance	24,024	77,001
Total individually evaluated collateral dependent loans	33,534	97,718
Allowance for credit losses related to loans evaluated individually	6,593	11,405
Allowance for credit losses related to loans evaluated collectively	102,552	153,962
Total allowance for credit losses	$ 109,145	$ 165,367	$ 56,132	$ 53,486

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CREDIT QUALITY ASSESSMENT - Allowance for Credit Losses by Respective Loan Portfolio Segment (Detail) - USD ($) $ in Thousands		12 Months Ended
	Apr. 01, 2020	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of year		$ 165,367	$ 56,132	$ 53,486
Initial allowance on Revere PCD loans	$ 18,600	0	18,628	0
Provision/ (credit)		(45,556)	85,669	4,684
Charge-offs		(12,313)	(1,819)	(2,668)
Recoveries		1,647	1,012	630
Net (charge-offs)/ recoveries		(10,666)	(807)
Balance at period end		109,145	165,367	56,132
Total loans		$ 9,967,091	$ 10,400,509
Allowance for credit losses to total loans ratio		1.10%	1590.00%
Average loans		$ 10,034,866	$ 9,317,493
Net charge-offs/ (recoveries) to average loans		0.11%	0.01%
Balance of loans individually evaluated for credit loss		$ 33,534	$ 97,718
Allowance related to loans evaluated individually		$ 6,593	$ 11,405
Individual allowance to loans evaluated individually ratio		19.66%	11670.00%
Balance of loans collectively evaluated for credit loss		$ 9,933,557	$ 10,302,791
Allowance related to loans evaluated collectively		$ 102,552	$ 153,962
Collective allowance to loans evaluated collectively ratio		1.03%	1490.00%
Revision of Prior Period, Reclassification, Adjustment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of year		$ 0	$ 2,762	0
Balance at period end			0	2,762
Revision of Prior Period, Accounting Standards Update, Adjustment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of year		0	2,983	0
Balance at period end			0	2,983
Commercial investor real estate
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Charge-offs		(5,802)	(411)
Total loans		4,141,346	3,634,720
Commercial owner-occupied real estate
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Charge-offs		(136)	0
Total loans		1,690,881	1,642,216
Commercial AD&C
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Charge-offs		(2,007)	0
Total loans		1,088,094	1,050,973
Residential mortgage
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Charge-offs		0	(484)
Total loans		937,570	1,105,179
Residential construction
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Charge-offs		0	0
Total loans		197,652	182,619
Commercial real estate: | Commercial investor real estate
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of year		57,404	18,407
Initial allowance on Revere PCD loans			7,973
Provision/ (credit)		(6,598)	33,431
Charge-offs		(5,802)	(411)
Recoveries		285	15
Net (charge-offs)/ recoveries		(5,517)	(396)
Balance at period end		45,289	57,404	18,407
Total loans		$ 4,141,346	$ 3,634,720
Allowance for credit losses to total loans ratio		1.09%	1580.00%
Average loans		$ 3,689,769	$ 3,210,527
Net charge-offs/ (recoveries) to average loans		0.15%	0.01%
Balance of loans individually evaluated for credit loss		$ 12,489	$ 45,227
Allowance related to loans evaluated individually		$ 213	$ 1,273
Individual allowance to loans evaluated individually ratio		1.71%	2810.00%
Balance of loans collectively evaluated for credit loss		$ 4,128,857	$ 3,589,493
Allowance related to loans evaluated collectively		$ 45,076	$ 56,131
Collective allowance to loans evaluated collectively ratio		1.09%	1560.00%
Commercial real estate: | Commercial investor real estate | Revision of Prior Period, Reclassification, Adjustment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of year			$ 1,114
Balance at period end				1,114
Commercial real estate: | Commercial investor real estate | Revision of Prior Period, Accounting Standards Update, Adjustment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of year			(3,125)
Balance at period end				(3,125)
Commercial real estate: | Commercial owner-occupied real estate
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of year		$ 20,061	6,884
Initial allowance on Revere PCD loans			2,782
Provision/ (credit)		(8,238)	10,008
Charge-offs		(136)	0
Recoveries		0	0
Net (charge-offs)/ recoveries		(136)	0
Balance at period end		11,687	20,061	6,884
Total loans		$ 1,690,881	$ 1,642,216
Allowance for credit losses to total loans ratio		0.69%	1220.00%
Average loans		$ 1,661,015	$ 1,560,223
Net charge-offs/ (recoveries) to average loans		0.01%	0.00%
Balance of loans individually evaluated for credit loss		$ 9,306	$ 11,561
Allowance related to loans evaluated individually		$ 79	$ 0
Individual allowance to loans evaluated individually ratio		0.85%	0.00%
Balance of loans collectively evaluated for credit loss		$ 1,681,575	$ 1,630,655
Allowance related to loans evaluated collectively		$ 11,608	$ 20,061
Collective allowance to loans evaluated collectively ratio		0.69%	1230.00%
Commercial real estate: | Commercial owner-occupied real estate | Revision of Prior Period, Reclassification, Adjustment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of year			$ 0
Balance at period end				0
Commercial real estate: | Commercial owner-occupied real estate | Revision of Prior Period, Accounting Standards Update, Adjustment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of year			387
Balance at period end				387
Commercial real estate: | Commercial AD&C
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of year		$ 22,157	7,590
Initial allowance on Revere PCD loans			1,248
Provision/ (credit)		172	10,743
Charge-offs		(2,007)	0
Recoveries		0	0
Net (charge-offs)/ recoveries		(2,007)	0
Balance at period end		20,322	22,157	7,590
Total loans		$ 1,088,094	$ 1,050,973
Allowance for credit losses to total loans ratio		1.87%	2110.00%
Average loans		$ 1,110,420	$ 906,414
Net charge-offs/ (recoveries) to average loans		0.18%	0.00%
Balance of loans individually evaluated for credit loss		$ 650	$ 15,044
Allowance related to loans evaluated individually		$ 504	$ 603
Individual allowance to loans evaluated individually ratio		77.54%	4010.00%
Balance of loans collectively evaluated for credit loss		$ 1,087,444	$ 1,035,929
Allowance related to loans evaluated collectively		$ 19,818	$ 21,554
Collective allowance to loans evaluated collectively ratio		1.82%	2080.00%
Commercial real estate: | Commercial AD&C | Revision of Prior Period, Reclassification, Adjustment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of year			$ 0
Balance at period end				0
Commercial real estate: | Commercial AD&C | Revision of Prior Period, Accounting Standards Update, Adjustment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of year			2,576
Balance at period end				2,576
Commercial Business
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Total loans		$ 8,402,155	8,595,457
Balance of loans individually evaluated for credit loss		9,033	23,648
Allowance related to loans evaluated individually		5,797	9,529
Commercial Business | Commercial business
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of year		46,806	11,395
Initial allowance on Revere PCD loans			6,289
Provision/ (credit)		(20,132)	24,374
Charge-offs		(4,069)	(491)
Recoveries		565	702
Net (charge-offs)/ recoveries		(3,504)	211
Balance at period end		23,170	46,806	11,395
Total loans		$ 1,481,834	$ 2,267,548
Allowance for credit losses to total loans ratio		1.56%	2060.00%
Average loans		$ 1,952,537	$ 1,781,197
Net charge-offs/ (recoveries) to average loans		0.18%	(0.01%)
Balance of loans individually evaluated for credit loss		$ 9,033	$ 23,648
Allowance related to loans evaluated individually		$ 5,797	$ 9,529
Individual allowance to loans evaluated individually ratio		64.18%	40300.00%
Balance of loans collectively evaluated for credit loss		$ 1,472,801	$ 2,243,900
Allowance related to loans evaluated collectively		$ 17,373	$ 37,277
Collective allowance to loans evaluated collectively ratio		1.18%	1660.00%
Commercial Business | Commercial business | Revision of Prior Period, Reclassification, Adjustment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of year			$ 1,549
Balance at period end				1,549
Commercial Business | Commercial business | Revision of Prior Period, Accounting Standards Update, Adjustment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of year			2,988
Balance at period end				2,988
Residential real estate: | Residential mortgage
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of year		$ 11,295	8,803
Initial allowance on Revere PCD loans			243
Provision/ (credit)		(6,321)	3,016
Charge-offs		0	(484)
Recoveries		410	105
Net (charge-offs)/ recoveries		410	(379)
Balance at period end		5,384	11,295	8,803
Total loans		$ 937,570	$ 1,105,179
Allowance for credit losses to total loans ratio		0.57%	1020.00%
Average loans		$ 979,754	$ 1,168,668
Net charge-offs/ (recoveries) to average loans		(0.04%)	0.03%
Balance of loans individually evaluated for credit loss		$ 1,704	$ 1,874
Allowance related to loans evaluated individually		$ 0	$ 0
Individual allowance to loans evaluated individually ratio		0.00%	0.00%
Balance of loans collectively evaluated for credit loss		$ 935,866	$ 1,103,305
Allowance related to loans evaluated collectively		$ 5,384	$ 11,295
Collective allowance to loans evaluated collectively ratio		0.58%	1020.00%
Residential real estate: | Residential mortgage | Revision of Prior Period, Reclassification, Adjustment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of year			$ 0
Balance at period end				0
Residential real estate: | Residential mortgage | Revision of Prior Period, Accounting Standards Update, Adjustment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of year			(388)
Balance at period end				(388)
Residential real estate: | Residential construction
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of year		$ 1,502	967
Initial allowance on Revere PCD loans			6
Provision/ (credit)		(459)	798
Charge-offs		0	0
Recoveries		5	6
Net (charge-offs)/ recoveries		5	6
Balance at period end		1,048	1,502	967
Total loans		$ 197,652	$ 182,619
Allowance for credit losses to total loans ratio		0.53%	820.00%
Average loans		$ 178,171	$ 165,567
Net charge-offs/ (recoveries) to average loans		0.00%	0.00%
Balance of loans individually evaluated for credit loss		$ 0	$ 0
Allowance related to loans evaluated individually		$ 0	$ 0
Individual allowance to loans evaluated individually ratio		0.00%	0.00%
Balance of loans collectively evaluated for credit loss		$ 197,652	$ 182,619
Allowance related to loans evaluated collectively		$ 1,048	$ 1,502
Collective allowance to loans evaluated collectively ratio		0.53%	820.00%
Residential real estate: | Residential construction | Revision of Prior Period, Reclassification, Adjustment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of year			$ 0
Balance at period end				0
Residential real estate: | Residential construction | Revision of Prior Period, Accounting Standards Update, Adjustment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of year			(275)
Balance at period end				(275)
Consumer
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of year		$ 6,142	2,086
Initial allowance on Revere PCD loans			87
Provision/ (credit)		(3,980)	3,299
Charge-offs		(299)	(433)
Recoveries		382	184
Net (charge-offs)/ recoveries		83	(249)
Balance at period end		2,245	6,142	2,086
Total loans		$ 429,714	$ 517,254
Allowance for credit losses to total loans ratio		0.52%	1190.00%
Average loans		$ 463,200	$ 524,897
Net charge-offs/ (recoveries) to average loans		(0.02%)	0.05%
Balance of loans individually evaluated for credit loss		$ 352	$ 364
Allowance related to loans evaluated individually		$ 0	$ 0
Individual allowance to loans evaluated individually ratio		0.00%	0.00%
Balance of loans collectively evaluated for credit loss		$ 429,362	$ 516,890
Allowance related to loans evaluated collectively		$ 2,245	$ 6,142
Collective allowance to loans evaluated collectively ratio		0.52%	1190.00%
Consumer | Revision of Prior Period, Reclassification, Adjustment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of year			$ 99
Balance at period end				99
Consumer | Revision of Prior Period, Accounting Standards Update, Adjustment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of year			$ 820
Balance at period end				$ 820

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CREDIT QUALITY ASSESSMENT - Collateral Dependent Loans Individually Evaluated for Credit Loss (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans individually evaluated for credit losses with an allowance:	$ 9,510	$ 20,717
Allowance related to loans evaluated individually	6,593	11,405
Loans individually evaluated for credit losses without an allowance:	24,024	77,001
Total individually evaluated loans:	33,534	97,718
Unpaid contractual principal balance	38,399	115,816
Non-accruing
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans individually evaluated for credit losses with an allowance:	6,386	17,419
Loans individually evaluated for credit losses without an allowance:	8,707	71,764
Total individually evaluated loans:	15,093	89,183
Non-accruing | Restructured
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans individually evaluated for credit losses with an allowance:	2,511	2,709
Loans individually evaluated for credit losses without an allowance:	13,763	3,509
Total individually evaluated loans:	16,274	6,218
Accruing | Restructured
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans individually evaluated for credit losses with an allowance:	613	589
Loans individually evaluated for credit losses without an allowance:	1,554	1,728
Total individually evaluated loans:	2,167	2,317
Commercial real estate: | Commercial investor real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans individually evaluated for credit losses with an allowance:	1,144	5,612
Allowance related to loans evaluated individually	213	1,273
Loans individually evaluated for credit losses without an allowance:	11,345	39,615
Total individually evaluated loans:	12,489	45,227
Unpaid contractual principal balance	12,857	49,920
Commercial real estate: | Commercial investor real estate | Non-accruing
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans individually evaluated for credit losses with an allowance:	808	4,913
Loans individually evaluated for credit losses without an allowance:	3,498	39,615
Total individually evaluated loans:	4,306	44,528
Commercial real estate: | Commercial investor real estate | Non-accruing | Restructured
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans individually evaluated for credit losses with an allowance:	336	699
Loans individually evaluated for credit losses without an allowance:	7,847	0
Total individually evaluated loans:	8,183	699
Commercial real estate: | Commercial investor real estate | Accruing | Restructured
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans individually evaluated for credit losses with an allowance:	0	0
Loans individually evaluated for credit losses without an allowance:	0	0
Total individually evaluated loans:	0	0
Commercial real estate: | Commercial owner-occupied real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans individually evaluated for credit losses with an allowance:	79	0
Allowance related to loans evaluated individually	79	0
Loans individually evaluated for credit losses without an allowance:	9,227	11,561
Total individually evaluated loans:	9,306	11,561
Unpaid contractual principal balance	11,132	15,309
Commercial real estate: | Commercial owner-occupied real estate | Non-accruing
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans individually evaluated for credit losses with an allowance:	79	0
Loans individually evaluated for credit losses without an allowance:	4,775	9,315
Total individually evaluated loans:	4,854	9,315
Commercial real estate: | Commercial owner-occupied real estate | Non-accruing | Restructured
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans individually evaluated for credit losses with an allowance:	0	0
Loans individually evaluated for credit losses without an allowance:	4,452	2,246
Total individually evaluated loans:	4,452	2,246
Commercial real estate: | Commercial owner-occupied real estate | Accruing | Restructured
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans individually evaluated for credit losses with an allowance:	0	0
Loans individually evaluated for credit losses without an allowance:	0	0
Total individually evaluated loans:	0	0
Commercial real estate: | Commercial AD&C
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans individually evaluated for credit losses with an allowance:	650	1,328
Allowance related to loans evaluated individually	504	603
Loans individually evaluated for credit losses without an allowance:	0	13,716
Total individually evaluated loans:	650	15,044
Unpaid contractual principal balance	695	16,040
Commercial real estate: | Commercial AD&C | Non-accruing
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans individually evaluated for credit losses with an allowance:	650	1,328
Loans individually evaluated for credit losses without an allowance:	0	13,716
Total individually evaluated loans:	650	15,044
Commercial real estate: | Commercial AD&C | Non-accruing | Restructured
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans individually evaluated for credit losses with an allowance:	0	0
Loans individually evaluated for credit losses without an allowance:	0	0
Total individually evaluated loans:	0	0
Commercial real estate: | Commercial AD&C | Accruing | Restructured
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans individually evaluated for credit losses with an allowance:	0	0
Loans individually evaluated for credit losses without an allowance:	0	0
Total individually evaluated loans:	0	0
Commercial Business
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans individually evaluated for credit losses with an allowance:	7,637	13,777
Allowance related to loans evaluated individually	5,797	9,529
Loans individually evaluated for credit losses without an allowance:	1,396	9,871
Total individually evaluated loans:	9,033	23,648
Unpaid contractual principal balance	10,573	30,958
Commercial Business | Non-accruing
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans individually evaluated for credit losses with an allowance:	4,849	11,178
Loans individually evaluated for credit losses without an allowance:	434	9,118
Total individually evaluated loans:	5,283	20,296
Commercial Business | Non-accruing | Restructured
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans individually evaluated for credit losses with an allowance:	2,175	2,010
Loans individually evaluated for credit losses without an allowance:	962	627
Total individually evaluated loans:	3,137	2,637
Commercial Business | Accruing | Restructured
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans individually evaluated for credit losses with an allowance:	613	589
Loans individually evaluated for credit losses without an allowance:	0	126
Total individually evaluated loans:	613	715
Residential real estate: | Residential mortgage
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans individually evaluated for credit losses with an allowance:	0	0
Allowance related to loans evaluated individually	0	0
Loans individually evaluated for credit losses without an allowance:	1,704	1,874
Total individually evaluated loans:	1,704	1,874
Unpaid contractual principal balance	2,778	3,225
Residential real estate: | Residential mortgage | Non-accruing
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans individually evaluated for credit losses with an allowance:	0	0
Loans individually evaluated for credit losses without an allowance:	0	0
Total individually evaluated loans:	0	0
Residential real estate: | Residential mortgage | Non-accruing | Restructured
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans individually evaluated for credit losses with an allowance:	0	0
Loans individually evaluated for credit losses without an allowance:	150	272
Total individually evaluated loans:	150	272
Residential real estate: | Residential mortgage | Accruing | Restructured
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans individually evaluated for credit losses with an allowance:	0	0
Loans individually evaluated for credit losses without an allowance:	1,554	1,602
Total individually evaluated loans:	1,554	1,602
Residential real estate: | Residential construction
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans individually evaluated for credit losses with an allowance:	0	0
Allowance related to loans evaluated individually	0	0
Loans individually evaluated for credit losses without an allowance:	0	0
Total individually evaluated loans:	0	0
Unpaid contractual principal balance	0	0
Residential real estate: | Residential construction | Non-accruing
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans individually evaluated for credit losses with an allowance:	0	0
Loans individually evaluated for credit losses without an allowance:	0	0
Total individually evaluated loans:	0	0
Residential real estate: | Residential construction | Non-accruing | Restructured
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans individually evaluated for credit losses with an allowance:	0	0
Loans individually evaluated for credit losses without an allowance:	0	0
Total individually evaluated loans:	0	0
Residential real estate: | Residential construction | Accruing | Restructured
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans individually evaluated for credit losses with an allowance:	0	0
Loans individually evaluated for credit losses without an allowance:	0	0
Total individually evaluated loans:	0	0
Consumer
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans individually evaluated for credit losses with an allowance:	0	0
Allowance related to loans evaluated individually	0	0
Loans individually evaluated for credit losses without an allowance:	352	364
Total individually evaluated loans:	352	364
Unpaid contractual principal balance	364	364
Consumer | Non-accruing
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans individually evaluated for credit losses with an allowance:	0	0
Loans individually evaluated for credit losses without an allowance:	0	0
Total individually evaluated loans:	0	0
Consumer | Non-accruing | Restructured
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans individually evaluated for credit losses with an allowance:	0	0
Loans individually evaluated for credit losses without an allowance:	352	364
Total individually evaluated loans:	352	364
Consumer | Accruing | Restructured
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans individually evaluated for credit losses with an allowance:	0	0
Loans individually evaluated for credit losses without an allowance:	0	0
Total individually evaluated loans:	$ 0	$ 0

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CREDIT QUALITY ASSESSMENT - Nonaccrual Related Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Financing Receivable, Nonaccrual [Line Items]
Average non-accrual loans for the period	$ 79,792	$ 72,562
Contractual interest income due on non-accrual loans during the period	5,092	18,301
Commercial real estate: | Commercial investor real estate
Financing Receivable, Nonaccrual [Line Items]
Average non-accrual loans for the period	31,590	26,849
Contractual interest income due on non-accrual loans during the period	2,169	6,547
Commercial real estate: | Commercial owner-occupied real estate
Financing Receivable, Nonaccrual [Line Items]
Average non-accrual loans for the period	9,444	6,605
Contractual interest income due on non-accrual loans during the period	555	2,741
Commercial real estate: | Commercial AD&C
Financing Receivable, Nonaccrual [Line Items]
Average non-accrual loans for the period	9,236	4,267
Contractual interest income due on non-accrual loans during the period	597	4,505
Commercial Business
Financing Receivable, Nonaccrual [Line Items]
Average non-accrual loans for the period	12,678	16,532
Contractual interest income due on non-accrual loans during the period	1,096	2,858
Residential real estate: | Residential mortgage
Financing Receivable, Nonaccrual [Line Items]
Average non-accrual loans for the period	9,439	11,634
Contractual interest income due on non-accrual loans during the period	271	918
Residential real estate: | Residential construction
Financing Receivable, Nonaccrual [Line Items]
Average non-accrual loans for the period	36	0
Contractual interest income due on non-accrual loans during the period	2	0
Consumer
Financing Receivable, Nonaccrual [Line Items]
Average non-accrual loans for the period	7,369	6,675
Contractual interest income due on non-accrual loans during the period	$ 402	$ 732

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CREDIT QUALITY ASSESSMENT - Narrative (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2021 USD ($) loan	Dec. 31, 2020 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans placed on non-accrual	$ 8,100
Reversal of uncollected accrued interest	200
Specific allowance	461	$ 1,020
Other real estate owned	$ 1,034	1,455
Number of consumer mortgage loans | loan	1
Consumer mortgage loan	$ 100
Restructured Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Troubled debt restructurings, balance	18,400	8,500
Troubled debt restructurings restructured, accruing	2,200	2,300
Troubled debt restructurings restructured, non-accruing	16,200	6,200
Loans restructured during the period	14,600	4,500
Specific allowance	500	1,000
Other real estate owned	$ 1,000	$ 1,500

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CREDIT QUALITY ASSESSMENT - Information on the Credit Quality of Loan Portfolio (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Loans placed on non-accrual	$ 8,100
Non-accrual status
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	112,361	$ 38,632
PCD loans designated as non-accrual		13,084
Loans placed on non-accrual	8,146	85,286
Non-accrual balances transferred to OREO	(257)	(70)
Non-accrual balances charged-off	(11,593)	(1,394)
Net payments or draws	(61,230)	(21,201)
Non-accrual loans brought current	(1,341)	(1,976)
Balance at end of period	46,086	112,361
Non-accrual status | Commercial real estate: | Commercial investor real estate
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	45,227	8,437
PCD loans designated as non-accrual		9,544
Loans placed on non-accrual	699	37,882
Non-accrual balances transferred to OREO	0	0
Non-accrual balances charged-off	(5,803)	(411)
Net payments or draws	(26,813)	(10,225)
Non-accrual loans brought current	(821)	0
Balance at end of period	12,489	45,227
Non-accrual status | Commercial real estate: | Commercial owner-occupied real estate
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	11,561	4,148
PCD loans designated as non-accrual		0
Loans placed on non-accrual	3,676	8,572
Non-accrual balances transferred to OREO	(257)	0
Non-accrual balances charged-off	(136)	0
Net payments or draws	(5,538)	(1,059)
Non-accrual loans brought current	0	(100)
Balance at end of period	9,306	11,561
Non-accrual status | Commercial real estate: | Commercial AD&C
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	15,044	829
PCD loans designated as non-accrual		0
Loans placed on non-accrual	49	15,844
Non-accrual balances transferred to OREO	0	0
Non-accrual balances charged-off	(2,007)	0
Net payments or draws	(12,436)	(1,629)
Non-accrual loans brought current	0	0
Balance at end of period	650	15,044
Non-accrual status | Commercial Business
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	22,933	8,450
PCD loans designated as non-accrual		2,539
Loans placed on non-accrual	1,339	17,442
Non-accrual balances transferred to OREO	0	0
Non-accrual balances charged-off	(3,547)	(446)
Net payments or draws	(12,305)	(4,169)
Non-accrual loans brought current	0	(883)
Balance at end of period	8,420	22,933
Non-accrual status | Residential real estate: | Residential mortgage
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	10,212	12,661
PCD loans designated as non-accrual		8
Loans placed on non-accrual	695	1,485
Non-accrual balances transferred to OREO	0	(70)
Non-accrual balances charged-off	0	(416)
Net payments or draws	(2,406)	(2,598)
Non-accrual loans brought current	(60)	(858)
Balance at end of period	8,441	10,212
Non-accrual status | Residential real estate: | Residential construction
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	0	0
PCD loans designated as non-accrual		0
Loans placed on non-accrual	62	0
Non-accrual balances transferred to OREO	0	0
Non-accrual balances charged-off	0	0
Net payments or draws	(7)	0
Non-accrual loans brought current	0	0
Balance at end of period	55	0
Non-accrual status | Consumer
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	7,384	4,107
PCD loans designated as non-accrual		993
Loans placed on non-accrual	1,626	4,061
Non-accrual balances transferred to OREO	0	0
Non-accrual balances charged-off	(100)	(121)
Net payments or draws	(1,725)	(1,521)
Non-accrual loans brought current	(460)	(135)
Balance at end of period	$ 6,725	$ 7,384

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CREDIT QUALITY ASSESSMENT - Credit Quality of Loan Portfolio by Segment (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Financing Receivable, Past Due [Line Items]
Total loans	$ 9,967,091	$ 10,400,509
Performing loans:
Financing Receivable, Past Due [Line Items]
Total loans	9,918,281	10,285,057
Non-performing loans:
Financing Receivable, Past Due [Line Items]
Non-accrual loans	46,086	112,361
Loans greater than 90 days past due	557	774
Restructured loans	2,167	2,317
Total non-performing loans	48,810	115,452
Current | Performing loans:
Financing Receivable, Past Due [Line Items]
Total loans	9,901,309	10,226,191
30-59 days | Performing loans:
Financing Receivable, Past Due [Line Items]
Total loans	12,475	46,812
60-89 days | Performing loans:
Financing Receivable, Past Due [Line Items]
Total loans	4,497	12,054
Commercial investor real estate
Financing Receivable, Past Due [Line Items]
Total loans	4,141,346	3,634,720
Commercial owner-occupied real estate
Financing Receivable, Past Due [Line Items]
Total loans	1,690,881	1,642,216
Commercial AD&C
Financing Receivable, Past Due [Line Items]
Total loans	1,088,094	1,050,973
Residential mortgage
Financing Receivable, Past Due [Line Items]
Total loans	937,570	1,105,179
Residential construction
Financing Receivable, Past Due [Line Items]
Total loans	197,652	182,619
Commercial real estate: | Commercial investor real estate
Financing Receivable, Past Due [Line Items]
Total loans	4,141,346	3,634,720
Commercial real estate: | Commercial investor real estate | Performing loans:
Financing Receivable, Past Due [Line Items]
Total loans	4,128,857	3,589,360
Commercial real estate: | Commercial investor real estate | Non-performing loans:
Financing Receivable, Past Due [Line Items]
Non-accrual loans	12,489	45,227
Loans greater than 90 days past due	0	133
Restructured loans	0	0
Total non-performing loans	12,489	45,360
Commercial real estate: | Commercial investor real estate | Current | Performing loans:
Financing Receivable, Past Due [Line Items]
Total loans	4,127,009	3,571,184
Commercial real estate: | Commercial investor real estate | 30-59 days | Performing loans:
Financing Receivable, Past Due [Line Items]
Total loans	1,656	14,046
Commercial real estate: | Commercial investor real estate | 60-89 days | Performing loans:
Financing Receivable, Past Due [Line Items]
Total loans	192	4,130
Commercial real estate: | Commercial owner-occupied real estate
Financing Receivable, Past Due [Line Items]
Total loans	1,690,881	1,642,216
Commercial real estate: | Commercial owner-occupied real estate | Performing loans:
Financing Receivable, Past Due [Line Items]
Total loans	1,681,575	1,630,655
Commercial real estate: | Commercial owner-occupied real estate | Non-performing loans:
Financing Receivable, Past Due [Line Items]
Non-accrual loans	9,306	11,561
Loans greater than 90 days past due	0	0
Restructured loans	0	0
Total non-performing loans	9,306	11,561
Commercial real estate: | Commercial owner-occupied real estate | Current | Performing loans:
Financing Receivable, Past Due [Line Items]
Total loans	1,680,635	1,624,265
Commercial real estate: | Commercial owner-occupied real estate | 30-59 days | Performing loans:
Financing Receivable, Past Due [Line Items]
Total loans	86	6,390
Commercial real estate: | Commercial owner-occupied real estate | 60-89 days | Performing loans:
Financing Receivable, Past Due [Line Items]
Total loans	854	0
Commercial real estate: | Commercial AD&C
Financing Receivable, Past Due [Line Items]
Total loans	1,088,094	1,050,973
Commercial real estate: | Commercial AD&C | Performing loans:
Financing Receivable, Past Due [Line Items]
Total loans	1,087,444	1,035,929
Commercial real estate: | Commercial AD&C | Non-performing loans:
Financing Receivable, Past Due [Line Items]
Non-accrual loans	650	15,044
Loans greater than 90 days past due	0	0
Restructured loans	0	0
Total non-performing loans	650	15,044
Commercial real estate: | Commercial AD&C | Current | Performing loans:
Financing Receivable, Past Due [Line Items]
Total loans	1,085,642	1,033,057
Commercial real estate: | Commercial AD&C | 30-59 days | Performing loans:
Financing Receivable, Past Due [Line Items]
Total loans	1,802	29
Commercial real estate: | Commercial AD&C | 60-89 days | Performing loans:
Financing Receivable, Past Due [Line Items]
Total loans	0	2,843
Commercial Business
Financing Receivable, Past Due [Line Items]
Total loans	8,402,155	8,595,457
Commercial Business | Commercial business
Financing Receivable, Past Due [Line Items]
Total loans	1,481,834	2,267,548
Commercial Business | Commercial business | Performing loans:
Financing Receivable, Past Due [Line Items]
Total loans	1,472,801	2,243,739
Commercial Business | Commercial business | Non-performing loans:
Financing Receivable, Past Due [Line Items]
Non-accrual loans	8,420	22,933
Loans greater than 90 days past due	0	161
Restructured loans	613	715
Total non-performing loans	9,033	23,809
Commercial Business | Commercial business | Current | Performing loans:
Financing Receivable, Past Due [Line Items]
Total loans	1,471,669	2,238,617
Commercial Business | Commercial business | 30-59 days | Performing loans:
Financing Receivable, Past Due [Line Items]
Total loans	753	4,859
Commercial Business | Commercial business | 60-89 days | Performing loans:
Financing Receivable, Past Due [Line Items]
Total loans	379	263
Residential real estate: | Residential mortgage
Financing Receivable, Past Due [Line Items]
Total loans	937,570	1,105,179
Residential real estate: | Residential mortgage | Performing loans:
Financing Receivable, Past Due [Line Items]
Total loans	927,018	1,092,885
Residential real estate: | Residential mortgage | Non-performing loans:
Financing Receivable, Past Due [Line Items]
Non-accrual loans	8,441	10,212
Loans greater than 90 days past due	557	480
Restructured loans	1,554	1,602
Total non-performing loans	10,552	12,294
Residential real estate: | Residential mortgage | Current | Performing loans:
Financing Receivable, Past Due [Line Items]
Total loans	919,199	1,073,963
Residential real estate: | Residential mortgage | 30-59 days | Performing loans:
Financing Receivable, Past Due [Line Items]
Total loans	5,157	16,213
Residential real estate: | Residential mortgage | 60-89 days | Performing loans:
Financing Receivable, Past Due [Line Items]
Total loans	2,662	2,709
Residential real estate: | Residential construction
Financing Receivable, Past Due [Line Items]
Total loans	197,652	182,619
Residential real estate: | Residential construction | Performing loans:
Financing Receivable, Past Due [Line Items]
Total loans	197,597	182,619
Residential real estate: | Residential construction | Non-performing loans:
Financing Receivable, Past Due [Line Items]
Non-accrual loans	55	0
Loans greater than 90 days past due	0	0
Restructured loans	0	0
Total non-performing loans	55	0
Residential real estate: | Residential construction | Current | Performing loans:
Financing Receivable, Past Due [Line Items]
Total loans	197,597	182,557
Residential real estate: | Residential construction | 30-59 days | Performing loans:
Financing Receivable, Past Due [Line Items]
Total loans	0	0
Residential real estate: | Residential construction | 60-89 days | Performing loans:
Financing Receivable, Past Due [Line Items]
Total loans	0	62
Consumer
Financing Receivable, Past Due [Line Items]
Total loans	429,714	517,254
Consumer | Performing loans:
Financing Receivable, Past Due [Line Items]
Total loans	422,989	509,870
Consumer | Non-performing loans:
Financing Receivable, Past Due [Line Items]
Non-accrual loans	6,725	7,384
Loans greater than 90 days past due	0	0
Restructured loans	0	0
Total non-performing loans	6,725	7,384
Consumer | Current | Performing loans:
Financing Receivable, Past Due [Line Items]
Total loans	419,558	502,548
Consumer | 30-59 days | Performing loans:
Financing Receivable, Past Due [Line Items]
Total loans	3,021	5,275
Consumer | 60-89 days | Performing loans:
Financing Receivable, Past Due [Line Items]
Total loans	$ 410	$ 2,047

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CREDIT QUALITY ASSESSMENT - Information about Credit Quality Indicator by Year of Origination (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	$ 3,023,908	$ 3,305,720
Year one	1,626,031	1,774,275
Year two	1,316,007	1,179,845
Year three	826,781	1,016,641
Year four	702,719	866,898
Prior	1,376,294	1,242,626
Revolving Loans	1,095,351	1,014,504
Total	9,967,091	10,400,509
Current period gross charge-offs, total	12,313	1,819	$ 2,668
Commercial investor real estate
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	1,394,986	922,059
Year one	749,082	767,459
Year two	625,715	466,934
Year three	366,804	470,150
Year four	340,595	470,019
Prior	644,925	504,568
Revolving Loans	19,239	33,531
Total	4,141,346	3,634,720
Current period gross charge-offs, current year	0	0
Current period gross charge-offs, year one	0	388
Current period gross charge-offs, year two	0	0
Current period gross charge-offs, year three	903	0
Current period gross charge-offs, year four	3,975	0
Current period gross charge-offs, prior	924	23
Current period gross charge-offs, revolving loans	0	0
Current period gross charge-offs, total	5,802	411
Commercial investor real estate | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	1,391,969	910,426
Year one	748,236	763,214
Year two	616,761	448,406
Year three	357,640	448,698
Year four	328,327	469,077
Prior	633,913	498,384
Revolving Loans	19,239	33,531
Total	4,096,085	3,571,736
Commercial investor real estate | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	2,210	11,044
Year one	510	0
Year two	4,646	4,879
Year three	596	833
Year four	2,204	269
Prior	10,438	27
Revolving Loans	0	0
Total	20,604	17,052
Commercial investor real estate | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	807	589
Year one	336	4,245
Year two	4,308	13,649
Year three	8,568	20,619
Year four	10,064	673
Prior	574	6,157
Revolving Loans	0	0
Total	24,657	45,932
Commercial investor real estate | Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	0	0
Year one	0	0
Year two	0	0
Year three	0	0
Year four	0	0
Prior	0	0
Revolving Loans	0	0
Total	0	0
Commercial owner-occupied real estate
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	362,293	289,210
Year one	257,626	389,393
Year two	327,764	239,670
Year three	189,716	197,841
Year four	177,164	205,278
Prior	375,169	319,160
Revolving Loans	1,149	1,664
Total	1,690,881	1,642,216
Current period gross charge-offs, current year	0	0
Current period gross charge-offs, year one	0	0
Current period gross charge-offs, year two	0	0
Current period gross charge-offs, year three	136	0
Current period gross charge-offs, year four	0	0
Current period gross charge-offs, prior	0	0
Current period gross charge-offs, revolving loans	0	0
Current period gross charge-offs, total	136	0
Commercial owner-occupied real estate | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	360,169	285,310
Year one	254,350	385,058
Year two	319,348	234,578
Year three	178,416	192,634
Year four	172,354	204,925
Prior	363,685	306,840
Revolving Loans	1,149	1,664
Total	1,649,471	1,611,009
Commercial owner-occupied real estate | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	156	2,290
Year one	1,476	0
Year two	4,388	3,027
Year three	9,035	4,742
Year four	4,456	134
Prior	9,106	4,079
Revolving Loans	0	0
Total	28,617	14,272
Commercial owner-occupied real estate | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	1,968	1,610
Year one	1,800	4,335
Year two	4,028	2,065
Year three	2,265	465
Year four	354	219
Prior	2,378	8,009
Revolving Loans	0	0
Total	12,793	16,703
Commercial owner-occupied real estate | Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	0	0
Year one	0	0
Year two	0	0
Year three	0	0
Year four	0	0
Prior	0	232
Revolving Loans	0	0
Total	0	232
Commercial AD&C
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	457,444	488,781
Year one	226,332	262,428
Year two	148,561	149,703
Year three	87,934	64,008
Year four	13,938	2,932
Prior	0	2,357
Revolving Loans	153,885	80,764
Total	1,088,094	1,050,973
Current period gross charge-offs, current year	0	0
Current period gross charge-offs, year one	0	0
Current period gross charge-offs, year two	0	0
Current period gross charge-offs, year three	0	0
Current period gross charge-offs, year four	2,007	0
Current period gross charge-offs, prior	0	0
Current period gross charge-offs, revolving loans	0	0
Current period gross charge-offs, total	2,007	0
Commercial AD&C | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	454,207	485,631
Year one	226,332	261,537
Year two	148,260	149,703
Year three	87,934	50,192
Year four	13,938	89
Prior	0	2,357
Revolving Loans	152,896	80,764
Total	1,083,567	1,030,273
Commercial AD&C | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	2,888	1,711
Year one	0	0
Year two	0	0
Year three	0	0
Year four	0	0
Prior	0	0
Revolving Loans	989	0
Total	3,877	1,711
Commercial AD&C | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	349	1,439
Year one	0	891
Year two	301	0
Year three	0	13,816
Year four	0	2,843
Prior	0	0
Revolving Loans	0	0
Total	650	18,989
Commercial AD&C | Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	0	0
Year one	0	0
Year two	0	0
Year three	0	0
Year four	0	0
Prior	0	0
Revolving Loans	0	0
Total	0	0
Residential mortgage
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	259,638	236,909
Year one	175,065	85,106
Year two	54,245	158,382
Year three	76,471	188,970
Year four	110,951	143,557
Prior	261,200	292,255
Revolving Loans	0	0
Total	937,570	1,105,179
Current period gross charge-offs, current year	0	0
Current period gross charge-offs, year one	0	0
Current period gross charge-offs, year two	0	0
Current period gross charge-offs, year three	0	0
Current period gross charge-offs, year four	0	11
Current period gross charge-offs, prior	0	473
Current period gross charge-offs, revolving loans	0	0
Current period gross charge-offs, total	0	484
Residential mortgage | 660-850
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	246,612	229,033
Year one	165,623	74,054
Year two	46,925	138,824
Year three	65,865	172,493
Year four	102,628	129,701
Prior	223,420	251,065
Revolving Loans	0	0
Total	851,073	995,170
Residential mortgage | 600-659
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	11,102	4,824
Year one	3,285	7,706
Year two	3,583	10,763
Year three	4,255	11,719
Year four	4,645	8,173
Prior	20,052	21,424
Revolving Loans	0	0
Total	46,922	64,609
Residential mortgage | 540-599
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	1,472	350
Year one	1,864	1,238
Year two	2,162	5,219
Year three	4,522	2,608
Year four	1,599	4,791
Prior	8,201	10,167
Revolving Loans	0	0
Total	19,820	24,373
Residential mortgage | less than 540
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	452	2,702
Year one	4,293	2,108
Year two	1,575	3,576
Year three	1,829	2,150
Year four	2,079	892
Prior	9,527	9,599
Revolving Loans	0	0
Total	19,755	21,027
Residential construction
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	138,002	115,201
Year one	45,890	47,836
Year two	8,713	14,543
Year three	2,078	2,805
Year four	1,347	2,062
Prior	1,622	0
Revolving Loans	0	172
Total	197,652	182,619
Current period gross charge-offs, current year	0	0
Current period gross charge-offs, year one	0	0
Current period gross charge-offs, year two	0	0
Current period gross charge-offs, year three	0	0
Current period gross charge-offs, year four	0	0
Current period gross charge-offs, prior	0	0
Current period gross charge-offs, revolving loans	0	0
Current period gross charge-offs, total	0	0
Residential construction | 660-850
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	134,335	112,604
Year one	45,890	44,647
Year two	8,063	14,543
Year three	2,078	2,805
Year four	1,347	1,693
Prior	1,160	0
Revolving Loans	0	172
Total	192,873	176,464
Residential construction | 600-659
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	1,922	1,743
Year one	0	3,189
Year two	650	0
Year three	0	0
Year four	0	0
Prior	0	0
Revolving Loans	0	0
Total	2,572	4,932
Residential construction | 540-599
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	0	0
Year one	0	0
Year two	0	0
Year three	0	0
Year four	0	369
Prior	462	0
Revolving Loans	0	0
Total	462	369
Residential construction | less than 540
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	1,745	854
Year one	0	0
Year two	0	0
Year three	0	0
Year four	0	0
Prior	0	0
Revolving Loans	0	0
Total	1,745	854
Commercial Business
Financing Receivable, Credit Quality Indicator [Line Items]
Total	8,402,155	8,595,457
Commercial Business | Commercial business
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	407,868	1,249,771
Year one	170,454	215,623
Year two	146,708	144,348
Year three	99,298	89,205
Year four	56,459	38,836
Prior	56,406	87,689
Revolving Loans	544,641	442,076
Total	1,481,834	2,267,548
Current period gross charge-offs, current year	0	0
Current period gross charge-offs, year one	0	0
Current period gross charge-offs, year two	88	23
Current period gross charge-offs, year three	1,674	160
Current period gross charge-offs, year four	46	103
Current period gross charge-offs, prior	2,236	205
Current period gross charge-offs, revolving loans	25	0
Current period gross charge-offs, total	4,069	491
Commercial Business | Commercial business | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	403,871	1,244,822
Year one	165,194	208,682
Year two	137,069	138,861
Year three	96,800	86,830
Year four	55,100	34,498
Prior	53,764	81,760
Revolving Loans	533,893	433,016
Total	1,445,691	2,228,469
Commercial Business | Commercial business | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	220	1,929
Year one	1,998	1,382
Year two	7,030	1,119
Year three	1,701	708
Year four	548	309
Prior	577	621
Revolving Loans	9,212	4,319
Total	21,286	10,387
Commercial Business | Commercial business | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	3,777	2,914
Year one	3,262	4,564
Year two	2,609	3,519
Year three	797	1,631
Year four	811	2,745
Prior	2,065	3,456
Revolving Loans	1,536	1,829
Total	14,857	20,658
Commercial Business | Commercial business | Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	0	106
Year one	0	995
Year two	0	849
Year three	0	36
Year four	0	1,284
Prior	0	1,852
Revolving Loans	0	2,912
Total	0	8,034
Consumer
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	3,677	3,789
Year one	1,582	6,430
Year two	4,301	6,265
Year three	4,480	3,662
Year four	2,265	4,214
Prior	36,972	36,597
Revolving Loans	376,437	456,297
Total	429,714	517,254
Current period gross charge-offs, current year	0	0
Current period gross charge-offs, year one	0	13
Current period gross charge-offs, year two	7	123
Current period gross charge-offs, year three	2	8
Current period gross charge-offs, year four	0	1
Current period gross charge-offs, prior	106	140
Current period gross charge-offs, revolving loans	184	148
Current period gross charge-offs, total	299	433
Consumer | 660-850
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	3,179	2,575
Year one	1,393	4,609
Year two	3,130	5,112
Year three	3,060	2,110
Year four	1,648	2,614
Prior	26,156	24,444
Revolving Loans	350,466	417,737
Total	389,032	459,201
Consumer | 600-659
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	352	374
Year one	123	445
Year two	324	334
Year three	716	428
Year four	430	467
Prior	4,906	5,401
Revolving Loans	14,119	21,052
Total	20,970	28,501
Consumer | 540-599
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	58	89
Year one	8	1,216
Year two	311	294
Year three	160	339
Year four	89	601
Prior	2,809	3,926
Revolving Loans	4,926	6,153
Total	8,361	12,618
Consumer | less than 540
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	88	751
Year one	58	160
Year two	536	525
Year three	544	785
Year four	98	532
Prior	3,101	2,826
Revolving Loans	6,926	11,355
Total	$ 11,351	$ 16,934

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CREDIT QUALITY ASSESSMENT - Restructured Loans For Specific Segments of the Loan Portfolio (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Financing Receivable, Troubled Debt Restructuring [Line Items]
Balance	$ 14,575	$ 4,533
Specific allowance	461	1,020
Restructured and subsequently defaulted	0	0
All Other Loans
Financing Receivable, Troubled Debt Restructuring [Line Items]
Balance	0	549
Specific allowance	0	0
Restructured and subsequently defaulted	0	0
Troubled debt restructurings:
Financing Receivable, Troubled Debt Restructuring [Line Items]
Restructured accruing	0	929
Restructured non-accruing	14,575	3,604
Troubled debt restructurings: | All Other Loans
Financing Receivable, Troubled Debt Restructuring [Line Items]
Restructured accruing	0	549
Restructured non-accruing	0	0
Commercial real estate: | Commercial investor real estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Balance	9,594	723
Specific allowance	0	65
Restructured and subsequently defaulted	0	0
Commercial real estate: | Commercial owner-occupied real estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Balance	3,157	930
Specific allowance	0	0
Restructured and subsequently defaulted	0	0
Commercial real estate: | Commercial AD&C
Financing Receivable, Troubled Debt Restructuring [Line Items]
Balance	0	0
Specific allowance	0	0
Restructured and subsequently defaulted	0	0
Commercial real estate: | Troubled debt restructurings: | Commercial investor real estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Restructured accruing	0	0
Restructured non-accruing	9,594	723
Commercial real estate: | Troubled debt restructurings: | Commercial owner-occupied real estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Restructured accruing	0	0
Restructured non-accruing	3,157	930
Commercial real estate: | Troubled debt restructurings: | Commercial AD&C
Financing Receivable, Troubled Debt Restructuring [Line Items]
Restructured accruing	0	0
Restructured non-accruing	0	0
Commercial Business
Financing Receivable, Troubled Debt Restructuring [Line Items]
Balance	1,824	2,331
Specific allowance	461	955
Restructured and subsequently defaulted	0	0
Commercial Business | Troubled debt restructurings:
Financing Receivable, Troubled Debt Restructuring [Line Items]
Restructured accruing	0	380
Restructured non-accruing	$ 1,824	$ 1,951

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PREMISES AND EQUIPMENT - Components of Premises and Equipment (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Property, Plant and Equipment [Abstract]
Land	$ 21,164	$ 13,262
Buildings and leasehold improvements	70,193	70,776
Equipment	48,889	49,614
Total premises and equipment	140,246	133,652
Less: accumulated depreciation and amortization	(80,561)	(75,932)
Net premises and equipment	$ 59,685	$ 57,720

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PREMISES AND EQUIPMENT - Narrative (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment [Abstract]
Depreciation and amortization	$ 7.9	$ 8.5	$ 7.2

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LEASES - Narrative (Details) $ in Thousands		3 Months Ended		12 Months Ended
	Apr. 01, 2020 USD ($) location operating_lease	Jun. 30, 2020 USD ($) operating_lease	Mar. 31, 2020 USD ($) location	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Lessee, Lease, Description [Line Items]
Right-of-use asset obtained in exchange for operating lease liability				$ 803	$ 871
Operating lease liabilities				67,138	74,982
Number of operating leases acquired likely to be terminated | operating_lease		7
Operating lease ROU assets				$ 57,872	$ 65,215
Branch Location
Lessee, Lease, Description [Line Items]
Number of operating leases acquired likely to be terminated | operating_lease		6
Office Space
Lessee, Lease, Description [Line Items]
Number of operating leases acquired likely to be terminated | operating_lease		1
Minimum
Lessee, Lease, Description [Line Items]
Renewal term				1 year
Maximum
Lessee, Lease, Description [Line Items]
Renewal term				20 years
Rembert Pendleton Jackson acquisition
Lessee, Lease, Description [Line Items]
Number of locations acquired | location			2
Right-of-use asset obtained in exchange for operating lease liability			$ 300
Revere acquisition
Lessee, Lease, Description [Line Items]
Right-of-use asset obtained in exchange for operating lease liability	$ 7,400
Number of operating leases | operating_lease	15
Number of locations | location	12
Operating lease liabilities	$ 8,700
Liabilities arising from contingencies	1,100
Tenant improvements	$ 200
Asset impairment charges		$ 2,300
Lease Operations, Not Yet Commenced
Lessee, Lease, Description [Line Items]
Operating lease liabilities				$ 900
Tenant improvements				100
Operating lease ROU assets				$ 700

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LEASES - Schedule of Lease Cost (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Components of lease expense:
Operating lease cost (resulting from lease payments)	$ 12,304	$ 12,453
Supplemental cash flow information related to leases:
Operating cash flows from operating leases	12,930	13,571
ROU assets obtained in exchange for lease liabilities	803	871
Supplemental balance sheet information related to leases:
Operating lease ROU assets	57,872	65,215
Operating lease liabilities	$ 67,138	$ 74,982
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Other assets	Other assets
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration]	Accrued interest payable and other liabilities	Accrued interest payable and other liabilities
Weighted average remaining lease term of operating leases	9 years	9 years 6 months
Weighted average discount rate of operating leases	2.92%	3.04%
Revere Bank and RPJ
Supplemental cash flow information related to leases:
ROU assets obtained in exchange for lease liabilities	$ 0	$ 7,720

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LEASES - Schedule of Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Maturity:
One year	$ 11,493
Two years	11,484
Three years	9,580
Four years	7,758
Five years	6,924
Thereafter	30,571
Total undiscounted lease payments	77,810
Less: Present value discount	(10,672)
Lease Liability	$ 67,138	$ 74,982

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GOODWILL AND OTHER INTANGIBLE ASSETS - Gross Carrying Amounts and Accumulated Amortization of Intangible Assets and Goodwill (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 42,944	$ 42,944
Accumulated Amortization	(17,024)	(10,423)
Net Carrying Amount	25,920	32,521
Goodwill, gross	370,223	370,223
Goodwill	370,223	370,223	$ 347,149
Core deposit intangibles
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	29,038	29,038
Accumulated Amortization	(12,624)	(7,969)
Net Carrying Amount	$ 16,414	$ 21,069
Core deposit intangibles | Weighted Average
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible asset, useful life	7 years 4 months 24 days	8 years 4 months 24 days
Other identifiable intangibles
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 13,906	$ 13,906
Accumulated Amortization	(4,400)	(2,454)
Net Carrying Amount	$ 9,506	$ 11,452
Other identifiable intangibles | Weighted Average
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible asset, useful life	9 years 8 months 12 days	10 years 8 months 12 days

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GOODWILL AND OTHER INTANGIBLE ASSETS - Net Carrying Amount of Goodwill By Segment (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Goodwill [Roll Forward]
Beginning balance	$ 370,223	$ 347,149
Acquisitions	0
Ending balance	370,223	370,223
Acquisition of Rembert Pendleton Jackson
Goodwill [Roll Forward]
Acquisitions		22,559
Acquisition of Revere Bank
Goodwill [Roll Forward]
Acquisitions		515
Community Banking
Goodwill [Roll Forward]
Beginning balance	331,688	331,173
Acquisitions	0
Ending balance	331,688	331,688
Community Banking | Acquisition of Rembert Pendleton Jackson
Goodwill [Roll Forward]
Acquisitions		0
Community Banking | Acquisition of Revere Bank
Goodwill [Roll Forward]
Acquisitions		515
Insurance
Goodwill [Roll Forward]
Beginning balance	6,788	6,788
Acquisitions	0
Ending balance	6,788	6,788
Insurance | Acquisition of Rembert Pendleton Jackson
Goodwill [Roll Forward]
Acquisitions		0
Insurance | Acquisition of Revere Bank
Goodwill [Roll Forward]
Acquisitions		0
Investment Management
Goodwill [Roll Forward]
Beginning balance	31,747	9,188
Acquisitions	0
Ending balance	$ 31,747	31,747
Investment Management | Acquisition of Rembert Pendleton Jackson
Goodwill [Roll Forward]
Acquisitions		22,559
Investment Management | Acquisition of Revere Bank
Goodwill [Roll Forward]
Acquisitions		$ 0

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GOODWILL AND OTHER INTANGIBLE ASSETS - Estimated Future Amortization Expense for Amortizing Intangibles (Detail) $ in Thousands	Dec. 31, 2021 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2022	$ 5,844
2023	5,089
2024	4,333
2025	3,567
2026	2,732
Thereafter	4,355
Total amortizing intangible assets	$ 25,920

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DEPOSITS - Composition of Deposits (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Deposits [Abstract]
Noninterest-bearing deposits	$ 3,779,630	$ 3,325,547
Interest-bearing deposits:
Demand	1,604,714	1,292,164
Money market savings	3,415,663	3,339,645
Regular savings	533,862	418,051
Time deposits of less than $250,000	910,464	1,180,636
Time deposits of $250,000 or more	380,398	477,026
Total interest-bearing deposits	6,845,101	6,707,522
Total deposits	$ 10,624,731	$ 10,033,069

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DEPOSITS - Narrative (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Time Deposits [Line Items]
Deposit liabilities reclassified as loans receivable	$ 1,800	$ 13,100
Percentage of time deposits, less than $250,000 of total deposits	8.60%
Percentage of time deposits of $250,000 or more of total deposits	3.60%
Interest expense, time deposits, less than $250,000	$ 6,000	16,500	$ 20,800
Interest expense, time deposits, $250,000 or more	3,000	10,700	$ 13,000
Total deposits	10,624,731	10,033,069
Director and Executive Officer
Time Deposits [Line Items]
Total deposits	$ 89,500	$ 73,400

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DEPOSITS - Maturity Schedule for Time Deposits (Detail) $ in Thousands	Dec. 31, 2021 USD ($)
Deposits [Abstract]
2022	$ 1,002,132
2023	165,131
2024	89,074
2025	16,464
2026	17,881
Thereafter	180
Total time deposits	$ 1,290,862

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DEPOSITS - Months to Maturities Of Time Deposits (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Time deposits - less than $250,000
3 or Less	$ 277,975
Over 3 to 6	226,476
Over 6 to 12	215,245
Over 12	190,768
Total	910,464	$ 1,180,636
Time deposits - $250,000 or more
3 or Less	88,510
Over 3 to 6	93,719
Over 6 to 12	100,207
Over 12	97,962
Time deposits of $250,000 or more	$ 380,398	$ 477,026

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BORROWINGS - Narrative (Detail) - USD ($)				3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2021	Apr. 01, 2020	Nov. 05, 2019	Mar. 31, 2020	Jul. 15, 2021	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Oct. 05, 2020
Subordinated debentures [Line Items]:
Subordinated debt						$ 172,712,000	$ 227,088,000
Repayments of subordinated debt						$ 53,000,000	10,310,000	$ 0
Percentage of principal and accrued interest of retail repurchase agreements collateralized						102.50%
Federal Home Loan Bank Advances						$ 0	379,100,000
Federal Home Loan Bank Advances
Subordinated debentures [Line Items]:
Line of credit amount available for borrowing						3,900,000,000	3,000,000,000
Repayments of FHLB advances						279,000,000
Prepayment penalty						9,100,000
Federal Home Loan Bank Advances | Residential mortgage
Subordinated debentures [Line Items]:
Loans pledged as collateral						829,100,000
Federal Home Loan Bank Advances | Commercial real estate loans
Subordinated debentures [Line Items]:
Loans pledged as collateral						3,100,000,000	2,800,000,000
Federal Home Loan Bank Advances | HELOC
Subordinated debentures [Line Items]:
Loans pledged as collateral						224,400,000	226,200,000
Federal Home Loan Bank Advances | Multifamily Loans
Subordinated debentures [Line Items]:
Loans pledged as collateral						333,400,000	237,600,000
Federal Reserve and Correspondent Banks
Subordinated debentures [Line Items]:
Line of credit amount available for borrowing						509,400,000	276,200,000
Long-term line of credit						0	0
Unsecured lines of credit, correspondent banks
Subordinated debentures [Line Items]:
Line of credit amount available for borrowing						1,300,000,000	1,100,000,000
Long-term line of credit						0	390,000,000
Subordinated Debt
Subordinated debentures [Line Items]:
Subordinated debt						172,712,000	227,088,000
Add: Purchase accounting premium						0	1,669,000
Subordinated Debt | WashingtonFirst Bankshares Inc
Subordinated debentures [Line Items]:
Subordinated debt						25,000,000
Interest rate									6.00%
Basis spread on variable rate					4.57%
Add: Purchase accounting premium						$ 2,200,000
Debt instrument, term						10 years
Subordinated Debt | Revere acquisition
Subordinated debentures [Line Items]:
Subordinated debt		$ 31,000,000
Interest rate		5.625%
Basis spread on variable rate	4.41%
Add: Purchase accounting premium		$ 200,000
Debt instrument, term		10 years
Subordinated Debt | Fixed Floating Rate Subordinated Notes
Subordinated debentures [Line Items]:
Subordinated debt			$ 175,000,000
Interest rate			4.25%
Basis spread on variable rate			2.62%
Unamortized discount (premium) and debt issuance costs, net			$ 2,900,000
Junior Subordinated Debt | WashingtonFirst Bankshares Inc
Subordinated debentures [Line Items]:
Subordinated debt						$ 10,300,000
Add: Purchase accounting premium						100,000
Repayments of subordinated debt				$ 10,300,000
Residential Portfolio Segment
Subordinated debentures [Line Items]:
Pledged under blanket lien							$ 1,000,000,000
Federal funds under the PPPLF program
Subordinated debentures [Line Items]:
Long-term line of credit						$ 0

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BORROWINGS - Schedule of Subordinated Borrowing (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Oct. 05, 2020	Apr. 01, 2020
Subordinated Borrowing [Line Items]
Subordinated debt	$ 172,712	$ 227,088
Subordinated Debt
Subordinated Borrowing [Line Items]
Subordinated debt, gross	175,000	231,000
Add: Purchase accounting premium	0	1,669
Less: Debt issuance costs	(2,288)	(2,581)
Subordinated debt	172,712	227,088
Subordinated Debt | Fixed Floating
Subordinated Borrowing [Line Items]
Subordinated debt, gross	$ 175,000	175,000
Interest rate	4.25%
Subordinated Debt | WashingtonFirst Bankshares Inc
Subordinated Borrowing [Line Items]
Subordinated debt, gross	$ 0	25,000
Add: Purchase accounting premium	2,200
Subordinated debt	25,000
Interest rate			6.00%
Subordinated Debt | Revere acquisition
Subordinated Borrowing [Line Items]
Subordinated debt, gross	0	31,000
Add: Purchase accounting premium				$ 200
Subordinated debt				$ 31,000
Interest rate				5.625%
Subordinated Debt | WashingtonFirst Bankshares Inc And Revere
Subordinated Borrowing [Line Items]
Less: Subordinated debt held as investments by Sandy Spring	$ 0	$ (3,000)

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BORROWINGS - Retail Repurchase Agreements and Federal Funds Purchased (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Retail repurchase agreements
Short-term Debt [Line Items]
Other short-term borrowings	$ 141,086	$ 153,157
Short-term debt, average outstanding amount	143,734	142,283
Other short term borrowings, maximum month end balance	$ 154,413	$ 153,157
Interest rate	0.12%	0.11%
Weighted average interest rate, over time	0.12%	0.32%
Federal funds purchased
Short-term Debt [Line Items]
Other short-term borrowings	$ 0	$ 390,000
Short-term debt, average outstanding amount	15,154	367,240
Other short term borrowings, maximum month end balance	$ 60,000	$ 921,289
Interest rate	0.00%	0.10%
Weighted average interest rate, over time	0.08%	0.41%

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BORROWINGS - Advances from FHLB and Respective Maturity Schedule (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Maturity, Amounts
One year	$ 0	$ 230,243
Two years	0	76,332
Three years	0	72,500
Four years	0	0
Five years	0	0
After five years	0	0
Total advances from FHLB	$ 0	$ 379,075
Maturity, Weighted Average Rate
One year	0.00%	2.39%
Two years	0.00%	2.37%
Three years	0.00%	3.12%
Four years	0.00%	0.00%
Five years	0.00%	0.00%
After five years	0.00%	0.00%
Total advances from FHLB	0.00%	2.52%

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STOCKHOLDERS' EQUITY - Narrative (Detail) - USD ($)		12 Months Ended			25 Months Ended
	Jul. 01, 2011	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Nov. 18, 2020	Dec. 31, 2018
Equity, Class of Treasury Stock [Line Items]
Common stock, shares authorized (in shares)		100,000,000	100,000,000		100,000,000
Common stock, par value (in dollars per share)		$ 1.00	$ 1.00		$ 1.00
Stock repurchased and retired (in shares)		2,350,000	820,328	668,191
2020 Stock Repurchase Plan
Equity, Class of Treasury Stock [Line Items]
Shares authorized for repurchase (in shares)			2,350,000		2,350,000
Dividend Reinvestment Plan
Equity, Class of Treasury Stock [Line Items]
Additional dividends potential payment		$ 126,600,000
Due to related parties		$ 0	$ 0		$ 0
Common Stock | Employee Stock Purchase Plan
Equity, Class of Treasury Stock [Line Items]
Common stock, shares authorized (in shares)	300,000
Maximum contribution amount	$ 25,000
Common Stock | Restated Employee Stock Purchase Plan
Equity, Class of Treasury Stock [Line Items]
Common stock, shares authorized (in shares)						700,000
Percentage of fair market value of share price		85.00%
Shares available for issuance (in shares)		647,455
Common Stock | Restated Employee Stock Purchase Plan | Minimum
Equity, Class of Treasury Stock [Line Items]
Percentage of cash compensation paid through payroll deductions		1.00%
Common Stock | Restated Employee Stock Purchase Plan | Maximum
Equity, Class of Treasury Stock [Line Items]
Percentage of cash compensation paid through payroll deductions		10.00%
Common Stock | 2020 Stock Repurchase Plan
Equity, Class of Treasury Stock [Line Items]
Stock repurchased during period (in shares)		2,350,000
Average cost per share (in dollars per share)					$ 45.65
Stock repurchased during period		$ 107,300,000
Common Stock | 2018 Stock Repurchase Plan
Equity, Class of Treasury Stock [Line Items]
Shares available for issuance (in shares)							1,800,000
Average cost per share (in dollars per share)					$ 33.58
Stock repurchased and retired (in shares)			820,328		1,488,519
Stock repurchased and retired			$ 25,700,000		$ 50,000,000

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SHARE BASED COMPENSATION - Narrative (Detail)	12 Months Ended
	Dec. 31, 2021 USD ($) director shares	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	May 06, 2015 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of directors | director	3
Options exercised intrinsic value | $	$ 7,979,000
2015 Omnibus Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized (in shares) | shares				1,500,000
Shares available for issuance (in shares) | shares	794,433
Expiration period	10 years
2015 Omnibus Incentive Plan | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
Award vesting rights, percentage	100.00%
Exercise period	7 years
2015 Omnibus Incentive Plan | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	5 years
Exercise period	10 years
2015 Omnibus Incentive Plan | Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares) | shares	128,557
2015 Omnibus Incentive Plan | Restricted Stock | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights, percentage	0.00%
2015 Omnibus Incentive Plan | Restricted Stock | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights, percentage	150.00%
2015 Omnibus Incentive Plan | Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
2015 Omnibus Incentive Plan | Performance Shares | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights, percentage	0.00%
2015 Omnibus Incentive Plan | Performance Shares | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights, percentage	150.00%
2015 Omnibus Incentive Plan | Performance Shares | 3 Year Vesting Period
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued (in shares) | shares	32,728
Performance period	3 years
2015 Omnibus Incentive Plan | Stock Options and Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Recognized compensation expense | $	$ 5,300,000	$ 3,900,000	$ 2,900,000
2015 Omnibus Incentive Plan | Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options exercised intrinsic value | $	8,000,000	$ 400,000	$ 200,000
Unrecognized compensation expense | $	0
2015 Omnibus Incentive Plan | Restricted shares,Restricted stock units and Performance share units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense | $	$ 8,200,000
Expected cost recognition weighted average period	2 years 1 month 6 days
2015 Omnibus Incentive Plan | Time Based Shares | 5 Year Vesting Period
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued (in shares) | shares	95,829
2015 Omnibus Incentive Plan | Time Based Shares | 5 Year Vesting Period | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years

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SHARE BASED COMPENSATION - Summary of Share Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Number of Common Shares
Beginning balance (in shares)	430,038
Granted (in shares)	0
Exercised (in shares)	(270,297)	(26,063)	(15,080)
Forfeited (in shares)	0
Expired (in shares)	0
Ending balance (in shares)	159,741	430,038
Exercisable at period end (in shares)	159,741
Weighted Average Exercise Share Price
Beginning balance (in dollars per share)	$ 14.97
Granted (in dollars per share)	0
Exercised (in dollars per share)	13.67
Forfeited (in dollars per share)	0
Expired (in dollars per share)	0
Ending balance (in dollars per share)	17.18	$ 14.97
Exercisable at period end (in dollars per share)	$ 17.18
Weighted Average Contractual Remaining Life (Years)
Balance at end of period	2 years 4 months 24 days
Exercisable at end of period	2 years 4 months 24 days
Aggregate Intrinsic Value (in thousands)
Beginning balance	$ 6,828
Exercised	7,979
Ending balance	5,264	$ 6,828
Exercisable at period end	$ 5,264

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SHARE BASED COMPENSATION - Summary of Activity for Company's Restricted Stock (Detail) - Restricted Stock	12 Months Ended
	Dec. 31, 2021 $ / shares shares
Number of Common Shares
Restricted stock beginning balance (in shares) | shares	391,683
Granted (in shares) | shares	128,557
Vested (in shares) | shares	(119,228)
Forfeited (in shares) | shares	(10,492)
Restricted stock ending balance (in shares) | shares	390,520
Weighted Average Grant-Date Fair Value
Restricted stock beginning balance (in dollars per share) | $ / shares	$ 29.50
Granted (in dollars per share) | $ / shares	41.05
Vested (in dollars per share) | $ / shares	31.48
Forfeited (in dollars per share) | $ / shares	31.93
Restricted stock ending balance (in dollars per share) | $ / shares	$ 32.67

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PENSION, PROFIT SHARING, AND OTHER EMPLOYEE BENEFIT PLANS - Narrative (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Retirement Benefits [Abstract]
Expected return on plan assets	3.25%	4.75%	5.00%
Maximum percentage of asset allocated to control market volatility	70.00%
Maximum percentage of market value for initial acquisition of equity portion	5.00%
Minimum percentage of value of equity portion for sale	10.00%
Maximum percentage of corporate debt issuable to single issuer	10.00%
Contribution by employer	$ 1,000	$ 0
Employer matching contribution	100.00%
Percent of employee deferrals	4.00%
Employer matching contribution, secondary	50.00%
Percent of employee deferrals, secondary	2.00%
Profit sharing and matching contribution	$ 6,000	5,300	$ 4,100
Executive incentive retirement plan benefit cost	$ 700	$ 600	$ 500

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PENSION, PROFIT SHARING, AND OTHER EMPLOYEE BENEFIT PLANS - Plan's Funded Status (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Reconciliation of Projected Benefit Obligation:
Projected obligation at beginning of period	$ 52,426	$ 45,497
Interest cost	1,269	1,437	$ 1,609
Actuarial (gain)/ loss	(22)	290
Benefit payments	(1,115)	(1,470)
Increase/ (decrease) related to change in assumptions	(2,040)	6,672
Settlement - lump sum payments	(2,439)	0
Projected obligation at period end	48,079	52,426	45,497
Reconciliation of Fair Value of Plan Assets:
Fair value of plan assets at beginning period	48,357	43,457
Actual return on plan assets	(596)	6,370
Employer contributions	1,000	0
Benefit payments	(1,115)	(1,470)
Settlement - lump sum payments	(2,439)	0
Fair value of plan assets at end of period	45,207	48,357	43,457
Funded status at period end	(2,872)	(4,069)
Accumulated benefit obligation at period end	48,079	52,426
Unrecognized net actuarial loss	11,030	12,719	11,177
Net periodic pension cost not yet recognized	$ 11,030	$ 12,719	$ 11,177

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PENSION, PROFIT SHARING, AND OTHER EMPLOYEE BENEFIT PLANS - Weighted Average Assumptions Used to Determine Benefit Obligations (Detail)	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Retirement Benefits [Abstract]
Discount rate	2.80%	2.50%	3.25%

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PENSION, PROFIT SHARING, AND OTHER EMPLOYEE BENEFIT PLANS - Net Periodic Benefit Cost (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Retirement Benefits [Abstract]
Interest cost on projected benefit obligation	$ 1,269	$ 1,437	$ 1,609
Expected return on plan assets	(1,247)	(1,821)	(1,647)
Recognized net actuarial loss	909	874	1,059
Settlement charge	560	0	0
Net periodic benefit cost	$ 1,491	$ 490	$ 1,021

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PENSION, PROFIT SHARING, AND OTHER EMPLOYEE BENEFIT PLANS - Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost (Detail)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Retirement Benefits [Abstract]
Discount rate	2.50%	3.25%	4.15%
Expected return on plan assets	3.25%	4.75%	5.00%

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PENSION, PROFIT SHARING, AND OTHER EMPLOYEE BENEFIT PLANS - Components of Net Unrecognized Benefits Costs (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Retirement Benefits [Abstract]
Included in accumulated other comprehensive income (loss), beginning balance	$ 12,719	$ 11,177	$ 12,352
Additions/(Reductions) during the year	1,842	(4,256)	(5,176)
Reclassifications due to recognition as net periodic pension cost	(909)	(874)	(1,059)
Settlement charge (1)	(560)	0	0
Increase (decrease) related to change in discount rate assumption	(2,062)	6,672	5,060
Included in accumulated other comprehensive income (loss), ending balance	11,030	$ 12,719	$ 11,177
Applicable tax effect	(2,827)
Included in accumulated other comprehensive income (loss), net of tax effect	8,203
Amount expected to be recognized as part of net periodic pension cost in the next fiscal year	$ 674

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PENSION, PROFIT SHARING, AND OTHER EMPLOYEE BENEFIT PLANS - Component of Net Periodic Benefit (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Retirement Benefits [Abstract]
Net actuarial loss	$ 11,030	$ 12,719	$ 11,177
Net periodic pension cost not yet recognized	$ 11,030	$ 12,719	$ 11,177

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PENSION, PROFIT SHARING, AND OTHER EMPLOYEE BENEFIT PLANS - Pension Plan Weighted Average Allocations (Detail)	Dec. 31, 2021	Dec. 31, 2020
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	100.00%	100.00%
Equity Securities
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	11.50%	11.60%
Mutual Fund
Defined Benefit Plan Disclosure [Line Items]
Total pension plan assets	88.50%	88.40%

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PENSION, PROFIT SHARING, AND OTHER EMPLOYEE BENEFIT PLANS - Fair Values of Pension Plan Assets by Asset Catetory (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, asset category	$ 45,207	$ 48,357	$ 43,457
Quoted Prices in Active Markets for Identical Assets (Level 1)
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, asset category	12,664	14,686
Significant Other Observable Inputs (Level 2)
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, asset category	32,543	33,671
Significant Unobservable Inputs (Level 3)
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, asset category	0	0
Mutual Fund
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, asset category	45,207	48,357
Mutual Fund | Quoted Prices in Active Markets for Identical Assets (Level 1)
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, asset category	12,664	14,686
Mutual Fund | Significant Other Observable Inputs (Level 2)
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, asset category	32,543	33,671
Mutual Fund | Significant Unobservable Inputs (Level 3)
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, asset category	0	0
Large cap U.S. equity funds
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, asset category	2,806	3,322
Large cap U.S. equity funds | Quoted Prices in Active Markets for Identical Assets (Level 1)
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, asset category	2,231	2,779
Large cap U.S. equity funds | Significant Other Observable Inputs (Level 2)
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, asset category	575	543
Large cap U.S. equity funds | Significant Unobservable Inputs (Level 3)
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, asset category	0	0
Small/Mid cap U.S. equity funds
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, asset category	1,536	1,124
Small/Mid cap U.S. equity funds | Quoted Prices in Active Markets for Identical Assets (Level 1)
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, asset category	0	0
Small/Mid cap U.S. equity funds | Significant Other Observable Inputs (Level 2)
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, asset category	1,536	1,124
Small/Mid cap U.S. equity funds | Significant Unobservable Inputs (Level 3)
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, asset category	0	0
International equity funds
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, asset category	875	1,183
International equity funds | Quoted Prices in Active Markets for Identical Assets (Level 1)
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, asset category	875	1,183
International equity funds | Significant Other Observable Inputs (Level 2)
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, asset category	0	0
International equity funds | Significant Unobservable Inputs (Level 3)
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, asset category	0	0
Short-term fixed income funds
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, asset category	39,990	4,299
Short-term fixed income funds | Quoted Prices in Active Markets for Identical Assets (Level 1)
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, asset category	9,558	0
Short-term fixed income funds | Significant Other Observable Inputs (Level 2)
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, asset category	30,432	4,299
Short-term fixed income funds | Significant Unobservable Inputs (Level 3)
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, asset category	$ 0	0
Fixed income funds
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, asset category		38,429
Fixed income funds | Quoted Prices in Active Markets for Identical Assets (Level 1)
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, asset category		10,724
Fixed income funds | Significant Other Observable Inputs (Level 2)
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, asset category		27,705
Fixed income funds | Significant Unobservable Inputs (Level 3)
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets, asset category		$ 0

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PENSION, PROFIT SHARING, AND OTHER EMPLOYEE BENEFIT PLANS - Benefit Payments (Detail) $ in Thousands	Dec. 31, 2021 USD ($)
Retirement Benefits [Abstract]
2022	$ 3,210
2023	1,990
2024	3,240
2025	2,330
2026	3,160
Thereafter	$ 14,540

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OTHER NON-INTEREST INCOME AND OTHER NON-INTEREST EXPENSE - Selected Components of Other Non-Interest Income And Other Non-Interest Expense (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Other Income and Expenses [Abstract]
Letter of credit fees	$ 910	$ 710	$ 389
Extension fees	811	1,967	1,287
Swap fee income	511	1,607	1,932
Prepayment penalty fees	3,216	961	404
Other income	9,869	3,976	4,768
Other income	15,317	9,221	8,780
Postage and delivery	1,906	1,624	1,502
Communications	2,508	2,729	2,414
Loss on FHLB redemption	9,117	5,928	0
Mortgage processing expense, net	1,504	1,381	817
Online services	2,209	1,591	1,375
Provision for credit losses on unfunded loan commitments	(1,236)	1,576	0
Franchise taxes	1,644	1,574	1,307
Insurance	1,586	1,311	1,113
Card transaction expense	1,183	1,083	1,031
Office supplies	742	912	957
Other expenses	13,229	10,894	9,910
Other expenses	$ 34,392	$ 30,603	$ 20,426

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INCOME TAXES - Components of Income Tax Expense (Benefit) (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Current income taxes:
Federal	$ 48,445	$ 43,115	$ 28,404
State	15,850	13,785	6,598
Total current	64,295	56,900	35,002
Deferred income taxes:
Federal	9,634	(22,793)	234
State	2,623	(6,636)	1,192
Total deferred	12,257	(29,429)	1,426
Total income tax expense	$ 76,552	$ 27,471	$ 36,428

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INCOME TAXES - Deferred Tax Assets And Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Deferred tax assets:
Allowance for credit losses	$ 27,980	$ 42,231
Lease liability	17,280	19,192
Employee benefits	7,740	6,108
Unrealized losses on pension plan	2,827	3,249
Deferred loan fees and costs	3,879	4,486
Equity based compensation	1,636	1,856
Unrealized losses on investments available-for-sale	121	0
Losses on other real estate owned	21	203
Other than temporary impairment	76	75
Loan and deposit premium/discount	553	1,081
Reserve for recourse loans	223	546
Net operating loss carryforward	2,023	1,475
Other	207	181
Gross deferred tax assets	64,566	80,683
Valuation allowance	(2,137)	(1,479)
Net deferred tax asset	62,429	79,204
Deferred tax liabilities:
Right of use asset	(14,888)	(16,693)
Unrealized gains on investments available-for-sale	0	(9,684)
Pension plan costs	(2,092)	(2,211)
Depreciation	(2,552)	(2,950)
Intangible assets	(5,653)	(6,894)
Bond accretion	(78)	(195)
Section 481 adjustments	0	(669)
Fair value acquisition adjustments	(624)	(555)
Other	(626)	(567)
Gross deferred tax liabilities	(26,513)	(40,418)
Net deferred tax asset	$ 35,916	$ 38,786

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INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards	$ 2,023	$ 1,475
Income tax benefit	(76,552)	(27,471)	$ (36,428)
State and Local Jurisdiction
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards	$ 29,900
WashingtonFirst Bankshares Inc | CARES Act
Operating Loss Carryforwards [Line Items]
Income tax benefit		$ 1,800

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INCOME TAXES - Reconcilements Between Statutory Federal Income Tax Rate And Effective Tax Rate (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Income tax expense at federal statutory rate	$ 65,448	$ 26,130	$ 32,101
Income tax expense at federal statutory rate	21.00%	21.00%	21.00%
Increase/ (decrease) resulting from:
Tax exempt income, net	$ (2,271)	$ (2,472)	$ (2,101)
Bank-owned life insurance	(602)	(567)	(665)
State income taxes, net of federal income tax benefits	14,593	5,648	6,154
Federal tax law change	0	(1,764)	0
Other, net	(616)	496	939
Total income tax expense	$ 76,552	$ 27,471	$ 36,428
Increase/ (decrease) resulting from:
Tax exempt income, net	(0.70%)	(2.00%)	(1.40%)
Bank-owned life insurance	(0.20%)	(0.50%)	(0.40%)
State income taxes, net of federal income tax benefits	4.70%	4.50%	4.00%
Federal tax law change	0.00%	(1.40%)	0.00%
Other, net	(0.20%)	0.50%	0.60%
Total income tax expense and rate	24.60%	22.10%	23.80%

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NET INCOME PER COMMON SHARE - Calculation of Net Income per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Earnings Per Share [Abstract]
Net income	$ 235,107	$ 96,953	$ 116,433
Less: Distributed and undistributed earnings allocated to participating securities	(1,508)	(783)	(762)
Net income attributable to common shareholders	$ 233,599	$ 96,170	$ 115,671
Total weighted average outstanding shares (in shares)	46,995	44,312	35,797
Less: weighted average participating securities (in shares)	(304)	(365)	(235)
Basic weighted average common shares (in shares)	46,691	43,947	35,562
Dilutive weighted average common stock equivalents (in shares)	208	185	56
Diluted weighted average common shares (in shares)	46,899	44,132	35,618
Basic net income per common share (in dollars per share)	$ 5.00	$ 2.19	$ 3.25
Diluted net income per common share (in dollars per share)	$ 4.98	$ 2.18	$ 3.25
Anti-dilutive shares (in shares)	0	17	9

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ACCUMULATED OTHER COMPREHENSIVE INCOME/ (LOSS) - Net Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning Balance	$ 18,705
Period change, net of tax	(27,244)	$ 23,037	$ 11,422
Ending Balance	(8,539)	18,705
Unrealized Gains/ (Losses) on Investments Available-for-Sale
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning Balance	28,175	4,000	(6,630)
Period change, net of tax	(28,511)	24,175	10,630
Ending Balance	(336)	28,175	4,000
Defined Benefit Pension Plan
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning Balance	(9,470)	(8,332)	(9,124)
Period change, net of tax	1,267	(1,138)	792
Ending Balance	(8,203)	(9,470)	(8,332)
Total
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning Balance	18,705	(4,332)	(15,754)
Period change, net of tax	(27,244)	23,037	11,422
Ending Balance	$ (8,539)	$ 18,705	$ (4,332)

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ACCUMULATED OTHER COMPREHENSIVE INCOME/ (LOSS) - Reclassification Adjustments Out of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Unrealized gains/(losses) on investments available-for-sale: Affected line item in the Statements of Income:
Investment securities gains	$ 212	$ 467	$ 77
Income before taxes	212	467	77
Tax expense	(54)	(120)	(20)
Net income	158	347	57
Amortization of defined benefit pension plan items: Affected line item in the Statements of Income:
Recognized actuarial loss	(909)	(874)	(1,059)
Settlement charge (1)	(560)	0	0
Income before taxes	(1,469)	(874)	(1,059)
Tax benefit	376	223	277
Net loss	$ (1,093)	$ (651)	$ (782)

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DERIVATIVES - Interest Rate Swaps (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Pay fixed/receive variable swaps
Derivatives, Fair Value [Line Items]
Notional Amount	$ 198,126	$ 160,261
Estimated Fair Value	$ (5,880)	$ (9,183)
Years to Maturity	8 years 8 months 12 days	8 years 8 months 12 days
Receive Rate	2.21%	2.39%
Pay Rate	3.73%	3.72%
Pay variable/receive fixed swaps
Derivatives, Fair Value [Line Items]
Notional Amount	$ 198,126	$ 160,261
Estimated Fair Value	$ 5,880	$ 9,183
Years to Maturity	8 years 8 months 12 days	8 years 8 months 12 days
Receive Rate	3.73%	3.72%
Pay Rate	2.21%	2.39%
Total swaps
Derivatives, Fair Value [Line Items]
Notional Amount	$ 396,252	$ 320,522
Estimated Fair Value	$ 0	$ 0
Years to Maturity	8 years 8 months 12 days	8 years 8 months 12 days
Receive Rate	2.97%	3.06%
Pay Rate	2.97%	3.06%

XML

FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK - Summary Of Financial Instruments With Off-Balance Sheet Credit Risk (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Total commitments to extend credit and available credit lines	$ 3,729,119	$ 3,320,157
Commercial real estate development and construction
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Total commitments to extend credit and available credit lines	621,725	871,290
Residential real estate-development and construction
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Total commitments to extend credit and available credit lines	885,806	94,096
Real estate-residential mortgage
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Total commitments to extend credit and available credit lines	54,072	335,288
Lines of credit, principally home equity and business lines
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Total commitments to extend credit and available credit lines	2,096,874	1,947,706
Standby letters of credit
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Total commitments to extend credit and available credit lines	$ 70,642	$ 71,777

XML

FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Condensed Financial Information Disclosure [Abstract]
Total reserve for unfunded commitments	$ 0.3	$ 1.6

XML

FAIR VALUE - Financial Assets and Liabilities Accounted for or Disclosed at Fair Value (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Residential mortgage loans held for sale (at fair value)	$ 39,409	$ 78,294
Investments available-for-sale:	1,465,896	1,348,021
Residential mortgage loans held for sale
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Residential mortgage loans held for sale (at fair value)	38,200	75,500
Fair Value, Measurements, Recurring
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments available-for-sale:	1,465,896	1,348,021
Total assets	1,511,185	1,435,498
Total liabilities	(5,880)	(9,183)
Fair Value, Measurements, Recurring | Residential mortgage loans held for sale
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Residential mortgage loans held for sale (at fair value)	39,409	78,294
Fair Value, Measurements, Recurring | U.S. treasuries and government agencies
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments available-for-sale:	68,539	43,297
Fair Value, Measurements, Recurring | State and municipal
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments available-for-sale:	326,402	390,367
Fair Value, Measurements, Recurring | Mortgage-backed and asset-backed
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments available-for-sale:	1,070,955	904,432
Fair Value, Measurements, Recurring | Corporate debt
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments available-for-sale:	0	9,925
Fair Value, Measurements, Recurring | Total swaps
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate swap agreements	5,880	9,183
Interest rate swap agreements	(5,880)	(9,183)
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments available-for-sale:	0	0
Total assets	0	0
Total liabilities	0	0
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Residential mortgage loans held for sale
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Residential mortgage loans held for sale (at fair value)	0	0
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. treasuries and government agencies
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments available-for-sale:	0	0
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | State and municipal
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments available-for-sale:	0	0
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage-backed and asset-backed
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments available-for-sale:	0	0
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate debt
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments available-for-sale:	0	0
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Total swaps
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate swap agreements	0	0
Interest rate swap agreements	0	0
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments available-for-sale:	1,465,896	1,338,096
Total assets	1,511,185	1,425,573
Total liabilities	(5,880)	(9,183)
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Residential mortgage loans held for sale
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Residential mortgage loans held for sale (at fair value)	39,409	78,294
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | U.S. treasuries and government agencies
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments available-for-sale:	68,539	43,297
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | State and municipal
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments available-for-sale:	326,402	390,367
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Mortgage-backed and asset-backed
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments available-for-sale:	1,070,955	904,432
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Corporate debt
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments available-for-sale:	0	0
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Total swaps
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate swap agreements	5,880	9,183
Interest rate swap agreements	(5,880)	(9,183)
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments available-for-sale:	0	9,925
Total assets	0	9,925
Total liabilities	0	0
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Residential mortgage loans held for sale
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Residential mortgage loans held for sale (at fair value)	0	0
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | U.S. treasuries and government agencies
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments available-for-sale:	0	0
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | State and municipal
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments available-for-sale:	0	0
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Mortgage-backed and asset-backed
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments available-for-sale:	0	0
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Corporate debt
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments available-for-sale:	0	9,925
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Total swaps
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate swap agreements	0	0
Interest rate swap agreements	$ 0	$ 0

XML

FAIR VALUE - Activity of Assets Reported as Level 3 (Detail) - Fair Value, Inputs, Level 3 - Available-for-Sale Securities $ in Thousands	12 Months Ended
	Dec. 31, 2021 USD ($)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 9,925
Transfer into Level 3 assets	0
Additions of Level 3 assets	0
Sales of Level 3 assets	(9,925)
Ending balance	$ 0

XML

FAIR VALUE - Assets Measured at Fair Value on Nonrecurring Basis (Detail) - Fair Value, Nonrecurring - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure, nonrecurring	$ 1,438	$ 15,356
Fair value measured on nonrecurring basis, losses	(1,434)	(11,612)
Impaired loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure, nonrecurring	404	13,901
Fair value measured on nonrecurring basis, losses	(1,353)	(11,326)
Other real estate owned
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure, nonrecurring	1,034	1,455
Fair value measured on nonrecurring basis, losses	(81)	(286)
Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure, nonrecurring	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Impaired loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure, nonrecurring	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Other real estate owned
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure, nonrecurring	0	0
Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure, nonrecurring	0	0
Significant Other Observable Inputs (Level 2) | Impaired loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure, nonrecurring	0	0
Significant Other Observable Inputs (Level 2) | Other real estate owned
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure, nonrecurring	0	0
Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure, nonrecurring	1,438	15,356
Significant Unobservable Inputs (Level 3) | Impaired loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure, nonrecurring	404	13,901
Significant Unobservable Inputs (Level 3) | Other real estate owned
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure, nonrecurring	$ 1,034	$ 1,455

XML

FAIR VALUE - Narrative (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Fair Value Disclosures [Abstract]
Balance of loans individually evaluated for credit loss	$ 33,534	$ 97,718
Fair value disclosure	26,900	86,300
Allowance related to loans evaluated individually	$ 6,593	11,405
Impaired loans		$ 97,700

XML

FAIR VALUE - Carrying Amounts and Fair Values of Company's Financial Instruments (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Financial assets:
Residential mortgage loans held for sale	$ 39,409	$ 78,294
Investments available-for-sale:	1,465,896	1,348,021
Loans, net of allowance	9,857,946	10,235,142
Accrued interest receivable	34,349	46,431
Financial liabilities:
Time deposits	1,290,862
Other deposits	10,624,731	10,033,069
Securities sold under retail repurchase agreements and federal funds purchased	141,086	543,157
Advances from FHLB	0	379,075
Subordinated debt	172,712	227,088
Carrying Amount
Financial assets:
Cash and cash equivalents	420,020	297,003
Residential mortgage loans held for sale	39,409	78,294
Investments available-for-sale:	1,465,896	1,348,021
Equity securities	41,166	65,760
Loans, net of allowance	9,857,946	10,235,142
Interest rate swap agreements	5,880	9,183
Accrued interest receivable	34,349	46,431
Bank owned life insurance	147,528	126,887
Financial liabilities:
Time deposits	1,290,862	1,657,662
Other deposits	9,333,869	8,375,407
Securities sold under retail repurchase agreements and federal funds purchased	141,086	543,157
Advances from FHLB	0	379,075
Subordinated debt	172,712	227,088
Interest rate swap agreements	5,880	9,183
Accrued interest payable	1,516	3,254
Estimated Fair Value
Financial assets:
Cash and cash equivalents	420,020	297,003
Residential mortgage loans held for sale	39,409	78,294
Investments available-for-sale:	1,465,896	1,348,021
Equity securities	41,166	65,760
Loans, net of allowance	9,964,924	10,336,355
Interest rate swap agreements	5,880	9,183
Accrued interest receivable	34,349	46,431
Bank owned life insurance	147,528	126,887
Financial liabilities:
Time deposits	1,292,598	1,674,112
Other deposits	9,333,869	8,375,407
Securities sold under retail repurchase agreements and federal funds purchased	141,086	543,157
Advances from FHLB	0	390,593
Subordinated debt	175,780	227,512
Interest rate swap agreements	5,880	9,183
Accrued interest payable	1,516	3,254
Quoted Prices in Active Markets for Identical Assets (Level 1) | Estimated Fair Value
Financial assets:
Cash and cash equivalents	420,020	297,003
Residential mortgage loans held for sale	0	0
Investments available-for-sale:	0	0
Equity securities	41,166	65,760
Loans, net of allowance	0	0
Interest rate swap agreements	0	0
Accrued interest receivable	34,349	46,431
Bank owned life insurance	0	0
Financial liabilities:
Time deposits	0	0
Other deposits	9,333,869	8,375,407
Securities sold under retail repurchase agreements and federal funds purchased	0	0
Advances from FHLB	0	0
Subordinated debt	0	0
Interest rate swap agreements	0	0
Accrued interest payable	1,516	3,254
Significant Other Observable Inputs (Level 2) | Estimated Fair Value
Financial assets:
Cash and cash equivalents	0	0
Residential mortgage loans held for sale	39,409	78,294
Investments available-for-sale:	1,465,896	1,338,096
Equity securities	0	0
Loans, net of allowance	0	0
Interest rate swap agreements	5,880	9,183
Accrued interest receivable	0	0
Bank owned life insurance	147,528	126,887
Financial liabilities:
Time deposits	1,292,598	1,674,112
Other deposits	0	0
Securities sold under retail repurchase agreements and federal funds purchased	141,086	543,157
Advances from FHLB	0	390,593
Subordinated debt	0	0
Interest rate swap agreements	5,880	9,183
Accrued interest payable	0	0
Significant Unobservable Inputs (Level 3) | Estimated Fair Value
Financial assets:
Cash and cash equivalents	0	0
Residential mortgage loans held for sale	0	0
Investments available-for-sale:	0	9,925
Equity securities	0	0
Loans, net of allowance	9,964,924	10,336,355
Interest rate swap agreements	0	0
Accrued interest receivable	0	0
Bank owned life insurance	0	0
Financial liabilities:
Time deposits	0	0
Other deposits	0	0
Securities sold under retail repurchase agreements and federal funds purchased	0	0
Advances from FHLB	0	0
Subordinated debt	175,780	227,512
Interest rate swap agreements	0	0
Accrued interest payable	$ 0	$ 0

XML

PARENT COMPANY FINANCIAL INFORMATION - Statements of Condition (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Assets
Cash and cash equivalents	$ 420,020	$ 297,003
Investments available-for-sale (at fair value)	1,465,896	1,348,021
Equity securities	41,166	65,760
Goodwill	370,223	370,223	$ 347,149
Other assets	275,078	265,859
Total assets	12,590,726	12,798,429	8,629,002
Liabilities
Subordinated debt	172,712	227,088
Accrued expenses and other liabilities	132,518	146,085
Total liabilities	11,071,047	11,328,474
Stockholders’ Equity:
Common stock	45,119	47,057
Additional paid-in capital	751,072	846,922
Retained earnings	732,027	557,271
Accumulated other comprehensive income/ (loss)	(8,539)	18,705
Total stockholders' equity	1,519,679	1,469,955	$ 1,132,974	$ 1,067,903
Total liabilities and stockholders' equity	12,590,726	12,798,429
Parent Company
Assets
Cash and cash equivalents	69,038	63,943
Investments available-for-sale (at fair value)	0	9,925
Equity securities	568	568
Investment in subsidiary	1,620,432	1,589,483
Goodwill	1,292	1,292
Other assets	2,255	2,684
Total assets	1,693,585	1,667,895
Liabilities
Subordinated debt	172,712	196,454
Accrued expenses and other liabilities	1,194	1,486
Total liabilities	173,906	197,940
Stockholders’ Equity:
Common stock	45,119	47,057
Additional paid-in capital	751,072	846,922
Retained earnings	732,027	557,271
Accumulated other comprehensive income/ (loss)	(8,539)	18,705
Total stockholders' equity	1,519,679	1,469,955
Total liabilities and stockholders' equity	$ 1,693,585	$ 1,667,895

XML

PARENT COMPANY FINANCIAL INFORMATION - Statements of Income (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income:
Other income	$ 9,869	$ 3,976	$ 4,768
Expenses:
Total interest expense	25,766	60,401	82,561
Income tax expense (benefit)	76,552	27,471	36,428
Net income	235,107	96,953	116,433
Parent Company
Income:
Cash dividends from subsidiary	189,172	74,410	42,625
Other income	434	932	1,093
Total income	189,606	75,342	43,718
Expenses:
Interest	6,765	9,028	3,141
Other expenses	1,592	1,505	1,507
Total interest expense	8,357	10,533	4,648
Income before income tax expense	181,249	64,809	39,070
Income tax expense (benefit)	(1,563)	(1,988)	(734)
Income before equity in undistributed income of subsidiary	182,812	66,797	39,804
Equity in undistributed income of subsidiary	52,295	30,156	76,629
Net income	$ 235,107	$ 96,953	$ 116,433

XML

PARENT COMPANY FINANCIAL INFORMATION - Statements of Cash Flows (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Cash Flows from Operating Activities:
Net income	$ 235,107	$ 96,953	$ 116,433
Adjustments to reconcile net income to net cash provided by operating activities:
Share based compensation expense	5,299	3,850	3,042
Tax (benefit)/ expense associated with share based compensation	(1,850)	(133)	92
Other-net	1,894	2,660	(721)
Net cash provided by operating activities	216,398	141,981	99,943
Cash Flows from Investing Activities:
Proceeds from sales of investment available-for-sale	400,567	121,357	2,926
Net cash provided by/ (used in) investing activities	308,261	(1,200,196)	(241,276)
Cash Flows from Financing Activities:
Retirement of subordinated debt	(53,000)	(10,310)	0
Proceeds from issuance of common stock	5,758	1,997	1,433
Stock tendered for payment of withholding taxes	(1,577)	(458)	(703)
Repurchase of Common Stock	(107,268)	(25,702)	(24,284)
Dividends paid	(60,351)	(53,175)	(42,272)
Net cash provided by/ (used in) financing activities	(401,642)	1,209,115	185,955
Net increase in cash and cash equivalents	123,017	150,900	44,622
Cash and cash equivalents at beginning of year	297,003	146,103	101,481
Cash and cash equivalents at end of year	420,020	297,003	146,103
Parent Company
Cash Flows from Operating Activities:
Net income	235,107	96,953	116,433
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed income-subsidiary	(52,295)	(30,156)	(76,629)
Share based compensation expense	5,299	3,850	3,042
Tax (benefit)/ expense associated with share based compensation	0	5	7
Other-net	4,133	(9,732)	0
Net cash provided by operating activities	192,244	60,920	42,853
Cash Flows from Investing Activities:
Proceeds from sales of investment available-for-sale	9,099	310	0
Investment in subsidiary	0	0	(85,000)
Net cash provided by/ (used in) investing activities	9,099	310	(85,000)
Cash Flows from Financing Activities:
Retirement of subordinated debt	(32,810)	(10,310)	0
Proceeds from issuance of subordinated debt	0	0	175,000
Proceeds from issuance of common stock	5,758	1,997	1,433
Stock tendered for payment of withholding taxes	(1,577)	(458)	(703)
Repurchase of Common Stock	(107,268)	(25,702)	(24,284)
Dividends paid	(60,351)	(53,175)	(42,272)
Net cash provided by/ (used in) financing activities	(196,248)	(87,648)	109,174
Net increase in cash and cash equivalents	5,095	(26,418)	67,027
Cash and cash equivalents at beginning of year	63,943	90,361	23,334
Cash and cash equivalents at end of year	$ 69,038	$ 63,943	$ 90,361

XML

REGULATORY MATTERS - Schedule of Actual Capital Amounts and Ratios (Detail) $ in Thousands	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Company
Tier 1 Leverage:
Actual Amount, Tier One Leverage Capital	$ 1,149,694	$ 1,078,213
Actual Ratio, Tier One Leverage Capital	0.0926	0.0892
For Capital Adequacy Purposes Amount, Tier One Leverage Capital	$ 496,520	$ 483,619
For Capital Adequacy Purposes Ratio, Tier One Leverage Capital	0.0400	0.0400
Common Equity Tier 1 Capital to risk-weighted assets:
Actual Amount, Common Equity Tier 1 Capital	$ 1,149,694	$ 1,078,213
Actual Ratio, Common Equity Tier 1 Capital	0.1191	0.1058
For Capital Adequacy Purposes Amount, Common Equity Tier 1 Capital	$ 434,466	$ 458,612
For Capital Adequacy Purposes Ratio, Common Equity Tier 1 Capital	0.0450	0.0450
Tier 1 Capital to risk-weighted assets:
Actual Amount, Tier One Risk Based Capital	$ 1,149,694	$ 1,078,213
Actual Ratio, Tier One Risk Based Capital	0.1191	0.1058
For Capital Adequacy Purposes Amount, Tier One Risk Based Capital	$ 579,288	$ 611,483
For Capital Adequacy Purposes Ratio, Tier One Risk Based Capital	0.0600	0.0600
Total Capital to risk-weighted assets:
Actual Amount, Capital	$ 1,408,808	$ 1,419,973
Actual Ratio, Capital	0.1459	0.1393
For Capital Adequacy Purposes Amount, Capital	$ 772,384	$ 815,311
For Capital Adequacy Purposes Ratio, Capital	0.0800	0.0800
Sandy Spring Bank
Tier 1 Leverage:
Actual Amount, Tier One Leverage Capital	$ 1,251,739	$ 1,199,570
Actual Ratio, Tier One Leverage Capital	0.1009	0.0993
For Capital Adequacy Purposes Amount, Tier One Leverage Capital	$ 496,171	$ 483,175
For Capital Adequacy Purposes Ratio, Tier One Leverage Capital	0.0400	0.0400
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount, Tier One Leverage Capital	$ 620,214	$ 603,969
To Be Well Capitalized Under Prompt Action Provisions Ratio, Tier One Leverage Capital	0.0500	0.0500
Common Equity Tier 1 Capital to risk-weighted assets:
Actual Amount, Common Equity Tier 1 Capital	$ 1,251,739	$ 1,199,570
Actual Ratio, Common Equity Tier 1 Capital	0.1298	0.1179
For Capital Adequacy Purposes Amount, Common Equity Tier 1 Capital	$ 433,889	$ 457,920
For Capital Adequacy Purposes Ratio, Common Equity Tier 1 Capital	0.0450	0.0450
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount, Common Equity Tier 1 Capital	$ 626,729	$ 661,441
To Be Well Capitalized Under Prompt Action Provisions Ratio, Common Equity Tier 1 Capital	6.50%	6.50%
Tier 1 Capital to risk-weighted assets:
Actual Amount, Tier One Risk Based Capital	$ 1,251,739	$ 1,199,570
Actual Ratio, Tier One Risk Based Capital	0.1298	0.1179
For Capital Adequacy Purposes Amount, Tier One Risk Based Capital	$ 578,519	$ 610,561
For Capital Adequacy Purposes Ratio, Tier One Risk Based Capital	0.0600	0.0600
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount, Tier One Risk Based Capital	$ 771,358	$ 814,081
To Be Well Capitalized Under Prompt Action Provisions Ratio, Tier One Risk Based Capital	0.0800	0.0800
Total Capital to risk-weighted assets:
Actual Amount, Capital	$ 1,335,853	$ 1,347,102
Actual Ratio, Capital	0.1385	0.1324
For Capital Adequacy Purposes Amount, Capital	$ 771,358	$ 814,081
For Capital Adequacy Purposes Ratio, Capital	0.0800	0.0800
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount, Capital	$ 964,198	$ 1,017,601
To Be Well Capitalized Under Prompt Action Provisions Ratio, Capital	0.1000	0.1000

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SEGMENT REPORTING - Narrative (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2021 USD ($) segment	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Segment Reporting Information [Line Items]
Number of operating segments | segment	3
Amortization of intangible assets	$ 6,600	$ 6,221	$ 1,946
Community Banking
Segment Reporting Information [Line Items]
Amortization of intangible assets	4,700	4,300	1,700
Investment Management
Segment Reporting Information [Line Items]
Amortization of intangible assets	1,900	$ 1,900	$ 100
Assets under management	$ 4,100,000

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SEGMENT REPORTING - Operating Segments and Reconciliation of Information to Condensed Consolidated Financial Statements (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Segment Reporting Information [Line Items]
Interest income	$ 450,284	$ 423,560	$ 347,869
Interest expense	25,766	60,401	82,561
Provision/ (credit) for credit losses	(45,556)	85,669	4,684
Non-interest income	102,055	102,716	71,322
Non-interest expenses	260,470	255,782	179,085
Income before income tax expense	311,659	124,424	152,861
Income tax expense	76,552	27,471	36,428
Net income	235,107	96,953	116,433
Assets	12,590,726	12,798,429	8,629,002
Inter-Segment Elimination
Segment Reporting Information [Line Items]
Interest income	(12)	(13)	(37)
Interest expense	(12)	(13)	(37)
Provision/ (credit) for credit losses	0	0	0
Non-interest income	(7,411)	(865)	(667)
Non-interest expenses	(868)	(865)	(667)
Income before income tax expense	(6,543)	0	0
Income tax expense	0	0	0
Net income	(6,543)	0	0
Assets	(67,659)	(71,211)	(22,352)
Community Banking | Operating Segments
Segment Reporting Information [Line Items]
Interest income	450,284	423,560	347,867
Interest expense	25,778	60,414	82,598
Provision/ (credit) for credit losses	(45,556)	85,669	4,684
Non-interest income	80,077	78,940	55,042
Non-interest expenses	240,996	237,910	166,802
Income before income tax expense	309,143	118,507	148,825
Income tax expense	74,036	25,907	35,350
Net income	235,107	92,600	113,475
Assets	12,590,176	12,800,537	8,624,590
Insurance | Operating Segments
Segment Reporting Information [Line Items]
Interest income	2	6	26
Interest expense	0	0	0
Provision/ (credit) for credit losses	0	0	0
Non-interest income	7,011	6,810	6,621
Non-interest expenses	5,869	5,686	5,731
Income before income tax expense	1,144	1,130	916
Income tax expense	339	313	258
Net income	805	817	658
Assets	9,110	11,335	10,340
Investment Management | Operating Segments
Segment Reporting Information [Line Items]
Interest income	10	7	13
Interest expense	0	0	0
Provision/ (credit) for credit losses	0	0	0
Non-interest income	22,378	17,831	10,326
Non-interest expenses	14,473	13,051	7,219
Income before income tax expense	7,915	4,787	3,120
Income tax expense	2,177	1,251	820
Net income	5,738	3,536	2,300
Assets	$ 59,099	$ 57,768	$ 16,424