Exhibit 99.1

    News release

FOR IMMEDIATE RELEASE

SANDY SPRING BANCORP REPORTS EARNINGS FOR THE FIRST QUARTER OF 2020

OLNEY, MARYLAND, April 23, 2020 — Sandy Spring Bancorp, Inc., (Nasdaq-SASR), the parent company of Sandy Spring Bank, today reported net income for the first quarter of 2020 of $10.0 million ($0.28 per diluted share) compared to net income of $30.3 million ($0.85 per diluted share) for the first quarter of 2019 and net income of $28.5 million ($0.80 per diluted share) for the fourth quarter of 2019. Earnings for the current quarter were negatively impacted by a provision for credit losses of $24.5 million. Although the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) would permit the Company to delay the adoption of the accounting standard for current expected credit losses (CECL), the Company has elected to adopt CECL as planned, effective January 1, 2020. The provision for credit losses was significantly impacted by the negative projected impact of COVID-19 on specific economic metrics used in the Company’s CECL model. Excluding the effect of the significant deterioration in the economic outlook late in the first quarter, the provision for credit losses was projected to have been approximately $4.1 million. Additionally, the results for the current quarter were negatively impacted by $1.5 million in merger and acquisition expense associated with the acquisition of the wealth advisory firm, Rembert Pendleton Jackson (“RPJ”), which closed on February 1, 2020, and the acquisition of Revere Bank (“Revere”), which closed on April 1, 2020. The acquisition of Revere resulted in the addition of 11 banking offices and approximately $2.9 billion in assets as of March 31, 2020.

“We entered the year in a position of strength after delivering a record year and preparing to expand our market presence with the acquisitions of Rembert Pendleton Jackson and Revere Bank,” said Daniel J. Schrider, President and Chief Executive Officer of Sandy Spring Bank. “Like individuals, families and businesses everywhere, we too had to quickly respond to the unprecedented public health and economic events that began to unfold late in the first quarter. We seamlessly implemented our contingency plans in order to protect the health of our employees, clients, and business and community partners. And while we have made many changes to how and where we all work, we have maintained the continuity of our client service and critical operations. I am grateful to our dedicated team of bankers for making this happen.”

“Our clients are facing a great deal of uncertainty right now, and we are committed to seeing them through this difficult time,” added Schrider. “From helping clients access federal relief programs, to working with individuals and business owners on a case-by-case basis, we are doing all that we can to connect our clients with the financial help they need.”

“We are pleased that RPJ and Revere Bank are now officially part of Sandy Spring Bank. As we continue to come together as a company, we are focused on upholding the tradition of community banking, providing remarkable service, and being the advocate that our clients need now more than ever.”

First Quarter Highlights:

· Total assets grew by 7%, while loans and deposits grew by 2% and 6%, respectively, compared to the prior year.

· The net interest margin was 3.29% for the first quarter of 2020, compared to 3.60% for the first quarter of 2019 and 3.38% for the fourth quarter of 2019. The net interest margin for the first quarter 2019 was 3.52%, after excluding recovered interest income on acquired credit impaired loans.

· The Company proceeded with the adoption of CECL effective January 1, 2020, resulting in an increase to the allowance for credit losses of $5.7 million. Exclusive of the $2.8 million reclassification to the allowance for credit losses related to acquired credit impaired loans, the impact to retained earnings at transition date was $2.2 million.

· The provision for credit losses for the first quarter of $24.5 million was significantly impacted by the specific economic metrics used in the modeling of expected credit losses. Excluding the effect of the significant deterioration in the economic outlook late in the first quarter, the provision for credit losses was projected to have been approximately $4.1 million.

· Non-interest income increased 7% from the prior year quarter driven primarily by the impact from the recent acquisition of Rembert Pendleton Jackson.

· The Company completed its stock repurchase program under which it purchased a total 1.5 million shares for a total of $50.0 million at an average price of $33.58 per share.

· Tangible book value remained stable at $21.09 per share at March 31, 2020 compared to $21.05 at March 31, 2019, after the completion of the stock repurchase program, an increase in the quarterly dividend to $0.30 per share in the second quarter of 2019 and the addition of $34.9 million in goodwill and intangible assets.

Response to COVID-19

The Company has taken significant steps to protect the health and well-being of its employees and clients and to assist clients who have been impacted by the COVID-19 pandemic.

We began implementing our business continuity plan in early March, which led to us taking the following actions to address the health and safety of employees and clients.

· In mid-March, we suspended all business-related travel, limited in-person meetings with outside parties, requested that employees postpone non-essential personal travel, and began transitioning employees to working remotely.

· We established an enhanced personal leave benefit that provides additional paid time off to employees who are unable to work for reasons related to COVID-19 – including having to care for children whose school has been closed – and who cannot work from home.

· We implemented enhanced cleaning and disinfecting procedures for our facilities.

· On March 18, we closed our branch lobbies to the public, established procedures for clients to schedule appointments in our branches for critical needs, such as safe deposit box access, and enhanced procedures to permit a wider range of transactions to be conducted through our drive-thru facilities.

· We notified our clients of reduced access to our facilities, promoted the use of online and mobile banking, and increased the staff in our customer service center to assist clients over the telephone.

· We established regular communications to employees to keep them apprised of the steps we are taking to support employee and client safety and the benefits available to them.

· We successfully transitioned approximately 85% of our non-branch personnel to working remotely.

· We developed comprehensive guidance for responding to any COVID-19 diagnoses or exposures in our operations.

· On March 30, we closed the majority of our branches that do not have drive-thru facilities.

· We are providing branch personnel and support staff whose responsibilities do not permit them to work remotely with a bonus of up to $1,200.

With these measures in place, we have continued to effectively serve the needs of our clients.

We have taken several steps to ease the financial burden of the COVID-19 pandemic on our clients:

· We have waived Sandy Spring Bank fees for clients using an ATM, regardless of location.

· We are waiving certain penalties for early certificate of deposit withdrawals less than $10,000.

· We have eliminated fees for remote check deposits by our business clients.

· We are working with clients who are experiencing financial hardship to provide fee waivers and structure loan payment deferrals or other accommodations.

We are participating in the Small Business Administration’s Paycheck Protection Program, which provides forgivable loans to small businesses to enable them to maintain payroll, hire back employees who have been laid off, and cover applicable overhead. After the program was announced, we quickly mobilized resources to maximize the ability of our clients to access this program. We have involved over 150 employees in our participation in the program, while simultaneously working with our technology vendors to implement software solutions to speed the intake of client applications and submission to the SBA. As of April 16, 2020, when the SBA announced that all of the funds appropriated for the program had been allocated, we have processed over 2,800 loans for a total of $923.5 million to businesses with more than an estimated 88,000 employees.

As a further relief to our qualified commercial and mortgage/consumer loan customers, the Company has developed guidelines to provide for deferment of certain loan payments up to 90 days. From March through April 16, the Company (including Revere) had granted approvals for payment modifications/deferrals on nearly 1,000 loans with an aggregate balance of $845.0 million.

For additional information about the Company’s response to the COVID-19 pandemic, segments of the Company’s loan portfolio exposed to industries adversely impacted by the pandemic, and our response to clients who sought loan payment deferral, we have provided supplemental materials available at the Investor Relations section of the Sandy Spring Website at www.sandyspringbank.com.

Balance Sheet and Credit Quality

Total assets grew to $8.9 billion at March 31, 2020, as compared to $8.3 billion at March 31, 2019. Total loans grew by 2% to $6.7 billion at March 31, 2020, compared to $6.6 billion at March 31, 2019. During this period commercial loans grew 8%, while the mortgage loan portfolio declined 11%. Continued reduction in the mortgage portfolio has been the result of heavy mortgage loan refinance activity driven by the low interest rate environment and the strategic decision to sell the majority of new mortgage loan production. Consumer loans also declined as borrowers eliminated their home equity borrowings through the refinancing of their mortgage loans. Deposit growth was 6% from March 31, 2019, to March 31, 2020, as interest-bearing deposits experienced growth of 6% and noninterest-bearing deposits grew 7%.

Tangible common equity declined to $721 million at March 31, 2020, compared to $748 million at March 31, 2019. The decline in common equity reflects the effects of the repurchase of 1.5 million shares of common stock, the increase in dividends beginning in the second quarter of 2019 and the increase in intangible assets and goodwill during the past twelve months. At March 31, 2020, the Company had a total risk-based capital ratio of 14.09%, a common equity tier 1 risk-based capital ratio of 10.23%, a tier 1 risk-based capital ratio of 10.23% and a tier 1 leverage ratio of 8.78%.

The level of non-performing loans to total loans increased to 0.80% at March 31, 2020, compared to 0.61% at March 31, 2019. At March 31, 2020, non-performing loans totaled $54.0 million, compared to $40.1 million at March 31, 2019, and $41.3 million at December 31, 2019. The growth in non-performing loans occurred as a result of the adoption of the accounting standard for expected credit losses as $13.1 million of previously disclosed and accounted for purchased credit impaired loans are now designated as non-accrual loans under the new standard’s guidance. New loans placed on non-accrual during the current quarter amounted to $2.4 million compared to $6.2 million for the prior year quarter and $5.4 million for the fourth quarter of 2019. Non-performing loans include accruing loans 90 days or more past due and restructured loans.

Loan charge-offs, net of recoveries, totaled $0.5 million for the first quarter of 2020 compared to $0.3 million for the first quarter of 2019. The allowance for credit losses represented 1.28% of outstanding loans and 159% of non-performing loans at March 31, 2020, compared to 0.81% of outstanding loans and 132% of non-performing loans at March 31, 2019. The growth in these ratios from 2019 to 2020 was the direct result of the impact on the allowance of the increased provision for credit losses required by recent economic developments.

Income Statement Review

Net interest income for the first quarter of 2020 decreased 4% compared to the first quarter of 2019, reflecting the impact of the declining interest rates over the preceding twelve months. The net interest margin declined to 3.29% for the first quarter of 2020 compared to 3.60% for the first quarter of 2019. The first quarter of 2019 included $1.8 million in recovered interest income on acquired credit impaired loans. Excluding the recovered interest income, the net interest margin for the first quarter of 2019 would have been 3.52%.

The provision for credit losses was $24.5 million for the first quarter of 2020, compared to a credit of $0.1 million for the first quarter of 2019 and $1.7 million for the fourth quarter of 2019. The impact of the negative economic projections on the credit portfolio resulted in a provision for credit losses of $24.5 million for the quarter.

Non-interest income was $18.2 million for the first quarter of 2020, as compared to $17.0 million for the first quarter of 2019. The current quarter included $0.2 million in securities gains and the prior year quarter included $0.6 million in life insurance mortality proceeds. Exclusive of these proceeds and securities gains, the growth in non-interest income for the quarter was 10% or $1.6 million compared to the prior year quarter. This increase was driven by the 33% increase in wealth management income as a result of the acquisition of the wealth advisory firm during the quarter. While the decline in residential mortgage lending rates during the quarter led to significant increase in loan originations, lower investor demand, in addition to a reduction in pricing, adversely affected the valuations of the forward commitments and loans held for sale, resulting in a significant decline in mortgage banking income for the current quarter compared to recent quarters.

Non-interest expenses increased 8% to $47.7 million for the first quarter of 2020 compared to $44.2 million in the first quarter of 2019. The current year’s quarter included $1.5 million in merger and acquisition expense. Exclusive of this expense, non-interest expense for the current quarter increased 5% primarily due to the increase in compensation expense as a result of annual merit increases over the preceding twelve months, commission compensation related to higher levels of residential mortgage loan originations and the additional monthly operating costs as a result of the acquisition of Rembert Pendleton Jackson.

The effective tax rate for the current quarter was significantly lower than prior periods due to the impact of certain tax provision contained within the recent passage of the CARES Act. The CARES Act expands the time permitted to utilize previous net operating losses. The Company was able to apply this change in conjunction with the 2018 acquisition of WashingtonFirst Bankshares, Inc. to realize a tax benefit of $1.8 million for the current quarter.

The non-GAAP efficiency ratio was 54.76% for the current quarter as compared to 51.44% for the first quarter of 2019 and 51.98% for the fourth quarter of 2019. The increase in the efficiency ratio (reflecting a reduction in efficiency) from the first quarter of last year to the current year was the result of the rate of growth in non-interest expense outpacing the growth in net revenues as a result of margin compression during the same time period.

Explanation of Non-GAAP Financial Measures

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

· Tangible common equity and related measures are non-GAAP measures that exclude the impact of intangible assets.

· The non-GAAP efficiency ratio is non-GAAP in that it excludes amortization of intangible assets, merger expenses and securities gains and includes tax-equivalent income.

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

Conference Call

The Company’s management will host a conference call to discuss its first quarter results today at 2:00 p.m. (ET). A live Webcast of the conference call is available through the Investor Relations section of the Sandy Spring Website at www.sandyspringbank.com. Participants may call 1-866-235-9910. A password is not necessary. Visitors to the Website are advised to log on 10 minutes ahead of the scheduled start of the call. An internet-based replay will be available on the website until 9:00 am (ET) May 7, 2020. A replay of the teleconference will be available through the same time period by calling 1-877-344-7529 under conference call number 10140486.

About Sandy Spring Bancorp, Inc.

Sandy Spring Bancorp, Inc., headquartered in Olney, Maryland, is the holding company for Sandy Spring Bank, a premier community bank in the Greater Washington, D.C. region. With over 55 locations, the bank offers a broad range of commercial and retail banking, mortgage, private banking, and trust services throughout Maryland, Northern Virginia, and Washington, D.C. Through its subsidiaries, Rembert Pendleton Jackson, Sandy Spring Insurance Corporation and West Financial Services, Inc., Sandy Spring Bank also offers a comprehensive menu of insurance and wealth management services.

For additional information or questions, please contact:

Daniel J. Schrider, President & Chief Executive Officer, or
Philip J. Mantua, E.V.P. & Chief Financial Officer
Sandy Spring Bancorp
17801 Georgia Avenue
Olney, Maryland 20832
1-800-399-5919
Email:	DSchrider@sandyspringbank.com
	PMantua@sandyspringbank.com
Website:	www.sandyspringbank.com
Media Contact:
Jen Schell
301-570-8331
jschell@sandyspringbank.com

Forward-Looking Statements

Sandy Spring Bancorp’s forward-looking statements are subject to the following principal risks and uncertainties: risks, uncertainties and other factors relating to the COVID-19 pandemic, including the length of time that the pandemic continues, the duration of shelter in place orders and the potential imposition of further restrictions on travel in the future; the effect of the pandemic on the general economy and on the businesses of our borrowers and their ability to make payments on their obligations; the remedial actions and stimulus measures adopted by federal, state and local governments, the inability of employees to work due to illness, quarantine, or government mandates; general economic conditions and trends, either nationally or locally; conditions in the securities markets; changes in interest rates; changes in deposit flows, and in the demand for deposit, loan, and investment products and other financial services; changes in real estate values; changes in the quality or composition of the Company’s loan or investment portfolios; changes in competitive pressures among financial institutions or from non-financial institutions; the Company’s ability to retain key members of management; changes in legislation, regulations, and policies; the possibility that any of the anticipated benefits of acquisitions will not be realized or will not be realized within the expected time period; and a variety of other matters which, by their nature, are subject to significant uncertainties. Sandy Spring Bancorp provides greater detail regarding some of these factors in its Form 10-K for the year ended December 31, 2019, including in the Risk Factors section of that report, and in its other SEC reports. Sandy Spring Bancorp’s forward-looking statements may also be subject to other risks and uncertainties, including those that it may discuss elsewhere in this news release or in its filings with the SEC, accessible on the SEC’s Web site at www.sec.gov.

Sandy Spring Bancorp, Inc. and Subsidiaries

FINANCIAL HIGHLIGHTS - UNAUDITED

	Three Months Ended
	March 31,						%
(Dollars in thousands, except per share data)	2020			2019			Change
Results of Operations:
Net interest income	$	64,334		$	66,750			(4	)%
Provision (credit) for credit losses		24,469			(128	)		n.m
Non-interest income		18,168			16,969			7
Non-interest expense		47,746			44,192			8
Income before income taxes		10,287			39,655			(74	)
Net income		9,987			30,317			(67	)
Pre-tax pre-provision pre-merger income (1)	$	36,210		$	39,527			(8	)
Return on average assets		0.46	%		1.49	%
Return on average common equity		3.55	%		11.46	%
Net interest margin		3.29	%		3.60	%
Efficiency ratio - GAAP basis   (2)		57.87	%		52.79	%
Efficiency ratio - Non-GAAP basis   (2)		54.76	%		51.44	%
Per share data:
Basic net income	$	0.29		$	0.85			(66	)%
Diluted net income	$	0.28		$	0.85			(67	)
Average fully diluted shares		35,057,190			35,806,459			(2	)
Dividends declared per share	$	0.30		$	0.28			7
Book value per share		32.68			30.82			6
Tangible book value per share (1)		21.09			21.05			-
Outstanding shares		34,164,672			35,557,110			(4	)
Financial Condition at period-end:
Investment securities	$	1,250,560		$	987,299			27	%
Loans		6,722,992			6,569,990			2
Interest-earning assets		8,222,589			7,648,654			8
Assets		8,929,602			8,327,900			7
Deposits		6,593,874			6,224,523			6
Interest-bearing liabilities		5,732,349			5,297,108			8
Stockholders' equity		1,116,334			1,095,848			2
Capital ratios:
Tier 1 leverage   (3)		8.78	%		9.61	%
Common equity tier 1 capital to risk-weighted assets   (3)		10.23	%		11.19	%
Tier 1 capital to risk-weighted assets   (3)		10.23	%		11.35	%
Total regulatory capital to risk-weighted assets   (3)		14.09	%		12.54	%
Tangible common equity to tangible assets   (4)		8.44	%		9.39	%
Average equity to average assets		12.99	%		13.00	%
Credit quality ratios:
Allowance for credit losses to loans		1.28	%		0.81	%
Non-performing loans to total loans		0.80	%		0.61	%
Non-performing assets to total assets		0.62	%		0.50	%
Allowance for credit losses to non-performing loans		159.02	%		132.35	%
Annualized net charge-offs to average loans    (5)		0.03	%		0.02	%

(1) Represents a Non-GAAP measure.

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

(3) Estimated ratio at March 31, 2020

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

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

Sandy Spring Bancorp, Inc. and Subsidiaries

RECONCILIATION TABLE - UNAUDITED        

	Three Months Ended
	March 31,
(Dollars in thousands)	2020			2019
Pre-tax pre-provision pre-merger income:
Net income	$	9,987		$	30,317
Plus non-GAAP adjustments:
Merger and acquisition expense		1,454			-
Income taxes		300			9,338
Provision (credit) for credit losses		24,469			(128	)
Pre-tax pre-provision pre-merger income	$	36,210		$	39,527
Efficiency ratio - GAAP basis:
Non-interest expense	$	47,746		$	44,192
Net interest income plus non-interest income	$	82,502		$	83,719
Efficiency ratio - GAAP basis		57.87	%		52.79	%
Efficiency ratio - Non-GAAP basis:
Non-interest expense	$	47,746		$	44,192
Less non-GAAP adjustments:
Amortization of intangible assets		600			491
Merger and acquisition expense		1,454			-
Non-interest expense -  as adjusted	$	45,692		$	43,701
Net interest income plus non-interest income	$	82,502		$	83,719
Plus non-GAAP adjustment:
Tax-equivalent income		1,108			1,241
Less non-GAAP adjustment:
Securities gains		169			-
Net interest income plus non-interest income - as adjusted	$	83,441		$	84,960
Efficiency ratio - Non-GAAP basis		54.76	%		51.44	%
Tangible common equity ratio:
Total stockholders' equity	$	1,116,334		$	1,095,848
Accumulated other comprehensive income		(6,344	)		9,050
Goodwill		(369,708	)		(347,149	)
Other intangible assets, net		(19,781	)		(9,297	)
Tangible common equity	$	720,501		$	748,452
Total assets	$	8,929,602		$	8,327,900
Goodwill		(369,708	)		(347,149	)
Other intangible assets, net		(19,781	)		(9,297	)
Tangible assets	$	8,540,113		$	7,971,454
Tangible common equity ratio		8.44	%		9.39	%
Outstanding common shares		34,164,672			35,557,110
Tangible book value per common share	$	21.09		$	21.05

Sandy Spring Bancorp, Inc. and Subsidiaries

CONDENSED CONSOLIDATED STATEMENTS OF CONDITION  - UNAUDITED

	March 31,			December 31,			March 31,
(Dollars in thousands)	2020			2019			2019
Assets
Cash and due from banks	$	79,185		$	82,469		$	67,282
Federal funds sold		131			208			481
Interest-bearing deposits with banks		181,792			63,426			65,886
Cash and cash equivalents		261,108			146,103			133,649
Residential mortgage loans held for sale (at fair value)		67,114			53,701			24,998
Investments available-for-sale (at fair value)		1,187,607			1,073,333			926,530
Other equity securities		62,953			51,803			60,769
Total loans		6,722,992			6,705,232			6,569,990
Less: allowance for credit losses		(85,800	)		(56,132	)		(53,089	)
Net loans		6,637,192			6,649,100			6,516,901
Premises and equipment, net		57,617			58,615			61,003
Other real estate owned		1,416			1,482			1,410
Accrued interest receivable		23,870			23,282			26,182
Goodwill		369,708			347,149			347,149
Other intangible assets, net		19,781			7,841			9,297
Other assets		241,236			216,593			220,012
Total assets	$	8,929,602		$	8,629,002		$	8,327,900
Liabilities
Noninterest-bearing deposits	$	1,939,937		$	1,892,052		$	1,813,708
Interest-bearing deposits		4,653,937			4,548,267			4,410,815
Total deposits		6,593,874			6,440,319			6,224,523
Securities sold under retail repurchase agreements and federal funds purchased		125,305			213,605			122,626
Advances from FHLB		754,061			513,777			726,278
Subordinated debentures		199,046			209,406			37,389
Accrued interest payable and other liabilities		140,982			118,921			121,236
Total liabilities		7,813,268			7,496,028			7,232,052
Stockholders' Equity
Common stock -- par value $1.00; shares authorized 100,000,000; shares issued and outstanding 34,164,672, 34,970,370 and 35,557,110 at March 31, 2020, December 31, 2019 and March 31, 2019, respectively		34,165			34,970			35,557
Additional paid in capital		562,891			586,622			607,479
Retained earnings		512,934			515,714			461,862
Accumulated other comprehensive income (loss)		6,344			(4,332	)		(9,050	)
Total stockholders' equity		1,116,334			1,132,974			1,095,848
Total liabilities and stockholders' equity	$	8,929,602		$	8,629,002		$	8,327,900

Sandy Spring Bancorp, Inc. and Subsidiaries

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED

	Three Months Ended
	March 31,
(Dollars in thousands, except per share data)	2020		2019
Interest Income:
Interest and fees on loans	$	75,882	$	80,397
Interest on loans held for sale		291		192
Interest on deposits with banks		180		194
Interest and dividends on investment securities:
Taxable		6,132		5,685
Exempt from federal income taxes		1,372		1,710
Interest on federal funds sold		1		5
Total interest income		83,858		88,183
Interest Expense:
Interest on deposits		13,518		14,480
Interest on retail repurchase agreements and federal funds purchased		580		398
Interest on advances from FHLB		3,145		6,064
Interest on subordinated debt		2,281		491
Total interest expense		19,524		21,433
Net interest income		64,334		66,750
Provision (credit) for credit losses		24,469		(128	)
Net interest income after provision for credit losses		39,865		66,878
Non-interest Income:
Investment securities gains		169		-
Service charges on deposit accounts		2,253		2,307
Mortgage banking activities		3,033		2,863
Wealth management income		6,966		5,236
Insurance agency commissions		2,129		1,900
Income from bank owned life insurance		645		1,189
Bank card fees		1,320		1,252
Other income		1,653		2,222
Total non-interest income		18,168		16,969
Non-interest Expense:
Salaries and employee benefits		28,053		25,976
Occupancy expense of premises		4,581		5,231
Equipment expenses		2,751		2,576
Marketing		1,189		943
Outside data services		1,582		1,778
FDIC insurance		482		1,136
Amortization of intangible assets		600		491
Merger and acquisition expense		1,454		-
Professional fees and services		1,826		1,245
Other expenses		5,228		4,816
Total non-interest expense		47,746		44,192
Income before income taxes		10,287		39,655
Income tax expense		300		9,338
Net income	$	9,987	$	30,317
Net Income Per Share Amounts:
Basic net income per share	$	0.29	$	0.85
Diluted net income per share	$	0.28	$	0.85
Dividends declared per share	$	0.30	$	0.28

Sandy Spring Bancorp, Inc. and Subsidiaries

HISTORICAL TRENDS - QUARTERLY FINANCIAL DATA - UNAUDITED

	2020			2019
(Dollars in thousands, except per share data)	Q1			Q4			Q3			Q2			Q1
Profitability for the Quarter:
Tax-equivalent interest income	$	84,966		$	86,539		$	88,229		$	88,423		$	89,424
Interest expense		19,524			19,807			20,292			21,029			21,433
Tax-equivalent net interest income		65,442			66,732			67,937			67,394			67,991
Tax-equivalent adjustment		1,108			1,149			1,147			1,209			1,241
Provision (credit) for credit losses		24,469			1,655			1,524			1,633			(128	)
Non-interest income		18,168			19,224			18,573			16,556			16,969
Non-interest expense		47,746			46,081			44,925			43,887			44,192
Income before income taxes		10,287			37,071			38,914			37,221			39,655
Income tax expense		300			8,614			9,531			8,945			9,338
Net income	$	9,987		$	28,457		$	29,383		$	28,276		$	30,317
Financial Performance:
Pre-tax pre-provision pre-merger income	$	36,210		$	39,674		$	40,802		$	38,854		$	39,527
Return on average assets		0.46	%		1.32	%		1.39	%		1.37	%		1.49	%
Return on average common equity		3.55	%		9.93	%		10.38	%		10.32	%		11.46	%
Net interest margin		3.29	%		3.38	%		3.51	%		3.54	%		3.60	%
Efficiency ratio - GAAP basis (1)		57.87	%		54.34	%		52.63	%		53.04	%		52.79	%
Efficiency ratio - Non-GAAP basis (1)		54.76	%		51.98	%		50.95	%		51.71	%		51.44	%
Per Share Data:
Basic net income per share	$	0.29		$	0.80		$	0.82		$	0.79		$	0.85
Diluted net income per share	$	0.28		$	0.80		$	0.82		$	0.79		$	0.85
Average fully diluted shares		35,057,190			35,773,246			35,900,102			35,890,437			35,806,459
Dividends declared per common share	$	0.30		$	0.30		$	0.30		$	0.30		$	0.28
Non-interest Income:
Securities gains	$	169		$	57		$	15		$	5		$	-
Service charges on deposit accounts		2,253			2,427			2,516			2,442			2,307
Mortgage banking activities		3,033			4,170			4,408			3,270			2,863
Wealth management income		6,966			6,401			5,493			5,539			5,236
Insurance agency commissions		2,129			1,331			2,116			1,265			1,900
Income from bank owned life insurance		645			660			662			654			1,189
Bank card fees		1,320			1,435			1,462			1,467			1,252
Other income		1,653			2,743			1,901			1,914			2,222
Total Non-interest Income	$	18,168		$	19,224		$	18,573		$	16,556		$	16,969
Non-interest Expense:
Salaries and employee benefits	$	28,053		$	26,251		$	26,234		$	25,489		$	25,976
Occupancy expense of premises		4,581			4,663			4,816			4,760			5,231
Equipment expenses		2,751			2,791			2,641			2,712			2,576
Marketing		1,189			1,085			1,541			887			943
Outside data services		1,582			1,854			1,973			1,962			1,778
FDIC insurance		482			123			(83	)		1,084			1,136
Amortization of intangible assets		600			481			491			483			491
Merger and acquisition expense		1,454			948			364			-			-
Professional fees and services		1,826			2,553			1,546			1,634			1,245
Other expenses		5,228			5,332			5,402			4,876			4,816
Total Non-interest Expense	$	47,746		$	46,081		$	44,925		$	43,887		$	44,192

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

Sandy Spring Bancorp, Inc. and Subsidiaries

HISTORICAL TRENDS - QUARTERLY FINANCIAL DATA - UNAUDITED

	2020			2019
(Dollars in thousands)	Q1			Q4			Q3			Q2			Q1
Balance Sheets at Quarter End:
Residential mortgage loans	$	1,116,512		$	1,149,327		$	1,199,275		$	1,241,081		$	1,249,968
Residential construction loans		149,573			146,279			150,692			171,106			176,388
Commercial AD&C loans		643,114			684,010			678,906			658,709			688,939
Commercial investor real estate loans		2,241,240			2,169,156			2,036,021			1,994,027			1,962,879
Commercial owner occupied real estate loans		1,305,682			1,288,677			1,278,505			1,224,986			1,216,713
Commercial business loans		813,525			801,019			772,619			772,158			769,660
Consumer loans		453,346			466,764			480,530			489,176			505,443
Total loans		6,722,992			6,705,232			6,596,548			6,551,243			6,569,990
Allowance for credit losses		(85,800	)		(56,132	)		(54,992	)		(54,024	)		(53,089	)
Loans held for sale		67,114			53,701			78,821			50,511			24,998
Investment securities		1,250,560			1,125,136			946,210			955,715			987,299
Interest-earning assets		8,222,589			7,947,703			7,742,138			7,713,364			7,648,654
Total assets		8,929,602			8,629,002			8,437,538			8,398,519			8,327,900
Noninterest-bearing demand deposits		1,939,937			1,892,052			2,081,435			2,023,614			1,813,708
Total deposits		6,593,874			6,440,319			6,493,899			6,389,749			6,224,523
Customer repurchase agreements		125,305			138,605			126,008			150,604			122,626
Total interest-bearing liabilities		5,732,349			5,485,055			5,093,265			5,136,860			5,297,108
Total stockholders' equity		1,116,334			1,132,974			1,140,041			1,119,445			1,095,848
Quarterly Average Balance Sheets:
Residential mortgage loans	$	1,139,786		$	1,169,623		$	1,215,132		$	1,244,086		$	1,230,319
Residential construction loans		145,266			149,690			162,196			174,095			189,720
Commercial AD&C loans		659,494			695,817			651,905			686,282			676,205
Commercial investor real estate loans		2,202,461			2,092,478			1,982,979			1,960,919			1,964,699
Commercial owner occupied real estate loans		1,285,257			1,274,782			1,258,000			1,215,632			1,207,799
Commercial business loans		819,133			765,159			786,150			756,594			780,318
Consumer loans		465,314			477,572			486,865			505,235			515,644
Total loans		6,716,711			6,625,121			6,543,227			6,542,843			6,564,704
Loans held for sale		35,030			50,208			61,870			37,121			17,846
Investment securities		1,179,084			1,002,692			941,048			964,863			1,010,940
Interest-earning assets		7,994,618			7,859,836			7,690,629			7,619,240			7,627,187
Total assets		8,699,342			8,542,837			8,370,789			8,294,883			8,258,116
Noninterest-bearing demand deposits		1,797,227			1,927,063			1,909,884			1,796,802			1,682,720
Total deposits		6,433,694			6,459,551			6,405,762			6,247,409			5,952,942
Customer repurchase agreements		135,652			126,596			138,736			141,865			129,059
Total interest-bearing liabilities		5,612,056			5,326,303			5,202,876			5,269,209			5,403,946
Total stockholders' equity		1,130,051			1,136,824			1,123,185			1,099,078			1,073,291
Financial Measures:
Average equity to average assets		12.99	%		13.31	%		13.42	%		13.25	%		13.00	%
Investment securities to earning assets		15.21	%		14.16	%		12.22	%		12.39	%		12.91	%
Loans to earning assets		81.76	%		84.37	%		85.20	%		84.93	%		85.90	%
Loans to assets		75.29	%		77.71	%		78.18	%		78.00	%		78.89	%
Loans to deposits		101.96	%		104.11	%		101.58	%		102.53	%		105.55	%
Capital Measures:
Tier 1 leverage  (1)		8.78	%		9.70	%		9.96	%		9.80	%		9.61	%
Common equity tier 1 capital to risk-weighted assets (1)		10.23	%		11.06	%		11.37	%		11.43	%		11.19	%
Tier 1 capital to risk-weighted assets (1)		10.23	%		11.21	%		11.52	%		11.59	%		11.35	%
Total regulatory capital to risk-weighted assets (1)		14.09	%		14.85	%		12.70	%		12.79	%		12.54	%
Book value per share	$	32.68		$	32.40		$	32.00		$	31.43		$	30.82
Outstanding shares		34,164,672			34,970,370			35,625,822			35,614,953			35,557,110

(1) Estimated ratio at March 31, 2020

Sandy Spring Bancorp, Inc. and Subsidiaries

LOAN PORTFOLIO QUALITY DETAIL - UNAUDITED

	2020			2019
(Dollars in thousands)	March 31,			December 31,			September 30,			June 30,			March 31,
Non-Performing Assets:
Loans 90 days past due:
Commercial business	$	-		$	-		$	17		$	-		$	-
Commercial real estate:
Commercial AD&C		-			-			-			-			-
Commercial investor real estate		-			-			1,201			1,248			-
Commercial owner occupied real estate		-			-			-			-			90
Consumer		-			-			-			-			-
Residential real estate:
Residential mortgage		8			-			-			-			221
Residential construction		-			-			-			-			-
Total loans 90 days past due		8			-			1,218			1,248			311
Non-accrual loans:
Commercial business		10,834			8,450			6,393			7,083			8,013
Commercial real estate:
Commercial AD&C		829			829			829			1,990			3,306
Commercial investor real estate		17,770			8,437			8,454			6,409			6,071
Commercial owner occupied real estate		4,074			4,148			3,810			3,766			5,992
Consumer		5,596			4,107			4,561			4,439			4,081
Residential real estate:
Residential mortgage		12,271			12,661			12,574			10,625			9,704
Residential construction		-			-			-			-			156
Total non-accrual loans		51,374			38,632			36,621			34,312			37,323
Total restructured loans - accruing		2,575			2,636			2,287			2,133			2,479
Total non-performing loans		53,957			41,268			40,126			37,693			40,113
Other assets and real estate owned (OREO)		1,416			1,482			1,482			1,486			1,410
Total non-performing assets	$	55,373		$	42,750		$	41,608		$	39,179		$	41,523
	For the Quarter Ended,
	March 31,			December 31,			September 30,			June 30,			March 31,
(Dollars in thousands)	2020			2019			2019			2019			2019
Analysis of Non-accrual Loan Activity:
Balance at beginning of period	$	38,632		$	36,621		$	34,312		$	37,323		$	33,583
Purchased credit deteriorated loans designated as non-accrual		13,084			-			-			-			-
Non-accrual balances transferred to OREO		-			-			-			(195	)		-
Non-accrual balances charged-off		(575	)		(454	)		(705	)		(604	)		(227	)
Net payments or draws		(1,860	)		(2,916	)		(2,903	)		(5,517	)		(1,786	)
Loans placed on non-accrual		2,369			5,381			6,015			3,396			6,202
Non-accrual loans brought current		(276	)		-			(98	)		(91	)		(449	)
Balance at end of period	$	51,374		$	38,632		$	36,621		$	34,312		$	37,323
Analysis of Allowance for Credit Losses:
Balance at beginning of period	$	56,132		$	54,992		$	54,024		$	53,089		$	53,486
Transition impact of adopting ASC 326		2,983			-			-			-			-
Initial allowance on purchased credit deteriorated loans		2,762			-			-			-			-
Provision (credit) for credit losses		24,469			1,655			1,524			1,633			(128	)
Less loans charged-off, net of recoveries:
Commercial business		108			15			389			735			7
Commercial real estate:
Commercial AD&C		-			-			(224	)		(4	)		-
Commercial investor real estate		-			(3	)		(3	)		(3	)		(7	)
Commercial owner occupied real estate		-			-			-			-			-
Consumer		107			241			187			(18	)		182
Residential real estate:
Residential mortgage		333			264			209			(10	)		89
Residential construction		(2	)		(2	)		(2	)		(2	)		(2	)
Net charge-offs		546			515			556			698			269
Balance at end of period	$	85,800		$	56,132		$	54,992		$	54,024		$	53,089
Asset Quality Ratios:
Non-performing loans to total loans		0.80	%		0.62	%		0.61	%		0.58	%		0.61	%
Non-performing assets to total assets		0.62	%		0.50	%		0.49	%		0.47	%		0.50	%
Allowance for credit losses to loans		1.28	%		0.84	%		0.83	%		0.82	%		0.81	%
Allowance for credit losses to non-performing loans		159.02	%		136.02	%		137.05	%		143.33	%		132.35	%
Annualized net charge-offs to average loans		0.03	%		0.03	%		0.03	%		0.04	%		0.02	%

Sandy Spring Bancorp, Inc. and Subsidiaries

CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES - UNAUDITED          

	Three Months Ended March 31,
				2020								2019
						Annualized								Annualized
	Average					Average			Average					Average
(Dollars in thousands and tax-equivalent)	Balances			Interest (1)		Yield/Rate			Balances			Interest (1)		Yield/Rate
Assets
Residential mortgage loans	$	1,139,786		$	10,741		3.77	%	$	1,230,319		$	11,788		3.83	%
Residential construction loans		145,266			1,561		4.32			189,720			1,963		4.20
Total mortgage loans		1,285,052			12,302		3.83			1,420,039			13,751		3.88
Commercial AD&C loans		659,494			8,329		5.08			676,205			9,880		5.93
Commercial investor real estate loans		2,202,461			25,265		4.61			1,964,699			25,729		5.31
Commercial owner occupied real estate loans		1,285,257			15,206		4.76			1,207,799			14,386		4.83
Commercial business loans		819,133			10,177		5.00			780,318			10,808		5.62
Total commercial loans		4,966,345			58,977		4.78			4,629,021			60,803		5.33
Consumer loans		465,314			5,156		4.46			515,644			6,330		4.98
Total loans (2)		6,716,711			76,435		4.57			6,564,704			80,884		4.99
Loans held for sale		35,030			291		3.32			17,846			192		4.31
Taxable securities		972,609			6,322		2.60			768,658			5,976		3.11
Tax-exempt securities (3)		206,475			1,737		3.37			242,282			2,173		3.59
Total investment securities (4)		1,179,084			8,059		2.73			1,010,940			8,149		3.23
Interest-bearing deposits with banks		63,533			180		1.14			33,068			194		2.38
Federal funds sold		260			1		1.23			629			5		3.33
Total interest-earning assets		7,994,618			84,966		4.27			7,627,187			89,424		4.74
Less:  allowance for credit losses		(61,962	)							(53,095	)
Cash and due from banks		69,618								62,478
Premises and equipment, net		58,346								61,722
Other assets		638,722								559,824
Total assets	$	8,699,342							$	8,258,116
Liabilities and Stockholders' Equity
Interest-bearing demand deposits	$	840,415			697		0.33	%	$	709,844			300		0.17	%
Regular savings deposits		331,119			73		0.09			331,473			93		0.11
Money market savings deposits		1,848,290			4,650		1.01			1,658,628			6,307		1.54
Time deposits		1,616,643			8,098		2.01			1,570,277			7,780		2.01
Total interest-bearing deposits		4,636,467			13,518		1.17			4,270,222			14,480		1.38
Other borrowings		236,806			580		0.99			170,660			398		0.95
Advances from FHLB		531,989			3,145		2.38			925,652			6,064		2.66
Subordinated debentures		206,794			2,281		4.41			37,412			491		5.25
Total interest-bearing liabilities		5,612,056			19,524		1.40			5,403,946			21,433		1.61
Noninterest-bearing demand deposits		1,797,227								1,682,720
Other liabilities		160,008								98,159
Stockholders' equity		1,130,051								1,073,291
Total liabilities and stockholders' equity	$	8,699,342							$	8,258,116
Net interest income and spread				$	65,442		2.87	%				$	67,991		3.13	%
Less: tax-equivalent adjustment					1,108								1,241
Net interest income				$	64,334							$	66,750
Interest income/earning assets							4.27	%							4.74	%
Interest expense/earning assets							0.98								1.14
Net interest margin							3.29	%							3.60	%

(1) Tax-equivalent income has been adjusted using the combined marginal federal and state rate of 25.45% for 2020 and 2019. The annualized taxable-equivalent adjustments utilized in the above table to compute yields aggregated to $1.1 million and $1.2 million in 2020 and 2019, respectively.

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

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

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