NEWS RELEASE

FOR IMMEDIATE RELEASE

SANDY SPRING BANCORP REPORTS

SECOND QUARTER RESULTS

OLNEY, MARYLAND, July 19, 2007 — Sandy Spring Bancorp, Inc., (Nasdaq-SASR) the parent company of Sandy Spring Bank, today announced net income for the second quarter of 2007 of $8.2 million ($.51 per diluted share) compared to $8.1 million ($.54 per diluted share) for the second quarter of 2006 and $7.5 million ($.49 per diluted share) for the linked quarter of 2007. Net income for the quarter includes after-tax merger costs of $0.4 million ($.02 per diluted share). The consolidated results of operations for CN Bancorp, Inc. (“County”) and its subsidiary, County National Bank, of Glen Burnie, Maryland, are included subsequent to the close of business on May 31, 2007. On the date of purchase, County had total loans of $99 million, total earning assets of $150 million, and total deposits of $139 million.

Net income for the six-month period ending June 30, 2007 totaled $15.7 million ($1.00 per diluted share) compared to $16.4 million ($1.10 per diluted share) for the prior year period, a 4% decrease. Net income for the year-to-date includes after-tax merger costs of $0.7 million ($.04 per diluted share) for the County acquisition mentioned above and the acquisition of Potomac Bank of Virginia (“Potomac”), which was completed in the first quarter of 2007.

“The costs associated with closing two mergers during the first half of 2007 should now be entirely behind us as we move into the second half of the year with good momentum and an expanded platform in two new markets,” said Hunter R. Hollar, President and Chief Executive Officer of Sandy Spring Bancorp. “Competition for deposits and loans remains intense throughout our service areas, but we believe we are well positioned to produce solid growth in both categories over the balance of the year. We experienced an increase in non-performing assets this quarter to 0.71% of total assets, primarily due to one borrower. We believe we are well secured on this loan and do not expect a loss. For years, our charge-offs and non-performing loans have been exceptionally low. However, the growth of the portfolio during the last several years as well as the nature of commercial loans and real estate development loans makes it inevitable that we will experience an occasional increase in non-performing assets, as we have this quarter. We believe, however, that credit quality will continue to be a strength of Sandy Spring Bank.”

“As expected, our net interest margin in the quarter held up nicely at 4.08% and our noninterest income growth remained strong. We continue to focus on more diligent expense management as we enter the second half of the year and are poised to execute on a formal efficiency project now that the majority of our integration efforts are complete.”

Sandy Spring Bancorp’s return on average stockholders’ equity was 11.45% for the second quarter of 2007, compared to 14.34% for the same period in the prior year. Return on average assets for the second quarter of 2007 was 1.10%, compared to 1.27% for the second quarter of 2006.

For the first six months of 2007, return on average stockholders’ equity was 11.69%, compared to 14.79% for the first six months of 2006. Return on average assets for the first six months of 2007 was 1.11%, compared to 1.31% for the first six months of 2006.

Comparing June 30, 2007 balances to June 30, 2006, total assets increased 20% to $3.1 billion due mainly to the County and Potomac acquisitions together with steady growth in the commercial loan portfolio. Total loans and leases increased 21% to $2.2 billion compared to the prior year. The two acquisitions accounted for approximately 77% of the year-over-year loan growth. Excluding these acquisitions, the loan portfolio increased 5% over the second quarter of the prior year. This was comprised mainly of a 12% increase in commercial loans, which was somewhat offset by a decline in mortgage loans due to a sale of loans in the third quarter of 2006. Customer funding sources, which include deposits plus other short-term borrowings from core customers, increased 24% to $2.5 billion at June 30, 2007. Again, 69% of the growth in such funding sources was due to the two acquisitions. Excluding the acquisitions, customer funding sources increased 7% over the second quarter of the prior year. Stockholders’ equity totaled $306.3 million at quarter-end, and represented 9.9% of total assets, compared to 8.8% at June 30, 2006.

The provision for loan and lease losses totaled $0.8 million for the second quarter of 2007 compared to $1.0 million for the second quarter of 2006 and $0.8 million for the linked quarter of 2007. The provision of loan and lease losses totaled $1.6 million for the first six months of 2007 compared to $2.0 million for the same period in 2006. The allowance for loan and lease losses represented 1.09% of outstanding loans at June 30, 2007. Non-performing assets increased $19.5 million compared to the prior year quarter, to $22.2 million at June 30, 2007, due primarily to one loan totaling $14.4 million which is well secured and on which management does not expect a loss.

The Company’s management will host a conference call to discuss its second quarter and year-to-date results today at 2:00 P.M. (ET). A live Web cast of the conference call is available through the Investor Relations’ section of the Sandy Spring Web site at www.sandyspringbank.com. Participants may call 877-407-8031; a password is not necessary. Visitors to the Web site are advised to log on 10 minutes ahead of the scheduled start of the call. An internet-based replay will be available at the Web site until 11:59 p.m. August 20, 2007. A telephone voice replay will also be available during that same time period at 877-660-6853. Please use pass code #286 and conference ID #246998 to access.

DETAILED REVIEW OF FINANCIAL RESULTS

Comparing the second quarter of 2007 and 2006, net interest income increased by $2.3 million, or 10%, due primarily to continued growth in the loan portfolio and higher loan yields, which were largely offset by increased rates on interest-bearing deposits and an increased use of time deposits to fund loan growth. These factors produced a net interest margin decrease to 4.08% in 2007 from 4.30% in 2006.

Noninterest income increased to $10.9 million in the second quarter of 2007 as compared to $9.4 million in 2006, an increase of 16%. Service charges on deposit accounts increased 35% due primarily to higher overdraft fees while gains on sales of mortgages increased 41% as origination volumes increased over the prior year period. Fees on sales of investment products increased 19% due to growth in sales of mutual funds and increased assets under management. Visa® check fees increased 17% reflecting continued growth in electronic transactions. These increases were somewhat offset by an 11% decline in insurance agency commissions due primarily to lower premium volume on commercial lines.

Noninterest expenses were $25.0 million in the second quarter of 2007 compared to $20.8 million in 2006, an increase of $4.2 million or 20%. This increase was driven mainly by $0.6 million in merger costs together with operating expenses of Potomac and County which combined to add $2.6 million in expenses for the quarter. Excluding expenses related to the acquisitions, noninterest expenses increased $1.5 million or 7% for the quarter. This increase in noninterest expenses, excluding the acquisitions, was due primarily to a 17% increase in occupancy costs and a 28% increase in other expenses due to higher professional and consulting fees. Intangibles amortization increased $0.3 million or 39% as a result of the two acquisitions.

Comparing the first six months of 2007 and 2006, net interest income increased by $3.2 million, or 7%, due primarily to continued growth in the loan portfolio and increased loan yields, which was offset in part by increased rates on interest bearing deposits and increased use of time deposits to fund loans. The net interest margin decreased to 4.08% in 2007 from 4.32% in 2006.

Noninterest income increased 13% for the first six months of 2007 compared to 2006. Service charges on deposit accounts increased 30% due mainly to higher overdraft fees mentioned above while income from bank owned life insurance grew by 23% due to higher rates and insurance policies added from the two acquisitions. Fees on sales of investment products increased 15% over the prior year due to higher sales of mutual funds and growth in assets under management. Insurance agency commissions also increased 11% for the year-to-date over 2006 due to higher contingency fees and commissions on physicians’ liability insurance while Visa® check fees increased 14%.

Noninterest expenses were $48.6 million in 2007 compared to $41.2 million in 2006, an increase of $7.4 million or 18%. This increase was primarily the result of $1.2 million in merger costs together with operating expenses of Potomac and County which together added $3.8 million in expenses for the six months. Excluding expenses related to the acquisitions, noninterest expenses increased $3.6 million or 9% over the prior year-to-date. This increase in noninterest expenses, excluding the acquisitions, was due primarily to an increase in occupancy costs and higher marketing expenses which increased over the prior year in accord with the Company’s strategic plan. In addition, other expenses increased 26% due primarily to higher professional and consulting fees as mentioned above. Intangibles amortization increased $0.3 million or 23% as a result of the two acquisitions.

About Sandy Spring Bancorp/Sandy Spring Bank

With $3.1 billion in assets, Sandy Spring Bancorp is the holding company for Sandy Spring Bank and its principal subsidiaries, Sandy Spring Insurance Corporation, The Equipment Leasing Company and West Financial Services, Inc. Sandy Spring Bancorp is the second largest publicly traded banking company headquartered in Maryland. Sandy Spring is a community banking organization that focuses its lending and other services on businesses and consumers in the local market area. Independent and community-oriented, Sandy Spring Bank was founded in 1868 and offers a broad range of commercial banking, retail banking and trust services through 42 community offices in Anne Arundel, Carroll, Frederick, Howard, Montgomery, and Prince George’s counties in Maryland, and Fairfax and Loudoun counties in Virginia. Through its subsidiaries, Sandy Spring Bank also offers a comprehensive menu of leasing, insurance and investment management services. Visit www.sandyspringbank.com to locate an ATM near you or for more information about Sandy Spring Bank.

For additional information or questions, please contact:

Hunter R. Hollar, President & Chief Executive Officer, or

Philip J. Mantua, Executive V.P. & Chief Financial Officer

Sandy Spring Bancorp

17801 Georgia Avenue

Olney, Maryland 20832

1-800-399-5919

E-mail: HHollar@sandyspringbank.com

PMantua@sandyspringbank.com

Web site: www.sandyspringbank.com

Forward-Looking Statements: Sandy Spring Bancorp makes forward-looking statements in this news release and in the conference call regarding this news release. These forward-looking statements may include: statements of goals, intentions, earnings expectations, and other expectations; estimates of risks and of future costs and benefits; assessments of probable loan and lease losses; assessments of market risk; and statements of the ability to achieve financial and other goals.

Forward-looking statements are typically identified by words such as “believe,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,” “forecast,” “project” and other similar words and expressions. Forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made. Sandy Spring Bancorp does not assume any duty and does not undertake to update its forward-looking statements. Because forward-looking statements are subject to assumptions and uncertainties, actual results or future events could differ, possibly materially, from those that Sandy Spring Bancorp anticipated in its forward-looking statements, and future results could differ materially from historical performance.

Sandy Spring Bancorp’s forward-looking statements are subject to the following principal risks and uncertainties: 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; 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, 2006, 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

(Dollars in thousands, except per share data)


	Three Months Ended								Six Months Ended
	June 30,						%		June 30,						%
	2007			2006			Change		2007			2006			Change
Profitability for the period:
Net interest income	$	26,199		$	23,852			10	$	50,214		$	47,029			7
Provision for loan and lease losses		780			1,045			(25)		1,619			1,995			(19)
Noninterest income		10,873			9,395			16		21,779			19,241			13
Noninterest expenses		24,959			20,828			20		48,573			41,184			18
Income before income taxes		11,333			11,374			(0)		21,801			23,091			(6)
Net income	$	8,169			8,095			1	$	15,714		$	16,435			(4)

Return on average assets		1.10	%		1.27	%				1.11	%		1.31	%
Return on average equity		11.45	%		14.34	%				11.69	%		14.79	%
Net interest margin		4.08	%		4.30	%				4.08	%		4.32	%
Efficiency ratio - GAAP based *		67.33	%		62.65	%				67.47	%		62.15	%
Efficiency ratio - traditional *		62.26	%		57.81	%				62.62	%		57.36	%

Per share data:
Basic net income	$	0.51		$	0.55			(7)	$	1.00		$	1.11			(10)
Diluted net income		0.51			0.54			(6)		1.00			1.10			(9)
Dividends declared		0.23			0.22			5		0.46			0.44			5
Book value		18.62			15.48			20		18.62			15.48			20
Tangible book value		12.76			13.81			(8)		12.76			13.81			(8)
Average fully diluted shares		16,069,771			14,884,677					15,735,503			14,886,115

At period-end:
Assets	$	3,101,409		$	2,588,528			20	$	3,101,409		$	2,588,528			20
Deposits		2,386,226			1,818,347			31		2,386,226			1,818,347			31
Loans and leases		2,165,008			1,781,964			21		2,165,008			1,781,964			21
Securities		490,371			588,552			(17)		490,371			588,552			(17)
Stockholders' equity		306,255			228,913			34		306,255			228,913			34

Capital and credit quality ratios:
Average equity to average assets		9.60	%		8.84	%				9.47	%		8.88	%
Allowance for loan and lease losses to loans and leases		1.09	%		1.06	%				1.09	%		1.06	%
Nonperforming assets to total assets		0.71	%		0.10	%				0.71	%		0.10	%
Annualized net charge-offs to average
loans and leases		0.05	%		0.00	%				0.02	%		0.00	%

* The GAAP based efficiency ratio is noninterest expenses divided by net interest income plus noninterest income from the Consolidated Statements of Income.
The traditional, non-GAAP efficiency ratio excludes intangible asset amortization from noninterest expenses; excludes securities gains from noninterest income; and adds the tax-equivalent adjustment to net interest income. See the Reconciliation Table included with these Financial Highlights.

Certain reclassifications and restatements of information previously reported have been made to conform with current presentation.

Sandy Spring Bancorp, Inc. and Subsidiaries
Reconciliation of GAAP-based and Traditional Efficiency Ratios
(In thousands, except per share data)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2007			2006			2007			2006
Noninterest expenses–GAAP based		24,959		$	20,828			48,573		$	41,184
Net interest income plus noninterest income–
GAAP based		37,072			33,247			71,993			66,270

Efficiency ratio–GAAP based		67.33	%		62.65	%		67.47	%		62.15	%

Noninterest expenses–GAAP based	$	24,959		$	20,828		$	48,573		$	41,184
Less non-GAAP adjustment:
Amortization of intangible assets		1,031			742			1,833			1,484
Noninterest expenses–traditional ratio		23,928			20,086			46,740			39,700

Net interest income plus noninterest income–
GAAP based		37,072			33,247			71,993			66,270
Plus non-GAAP adjustment:
Tax-equivalency		1,364			1,499			2,649			2,941
Less non-GAAP adjustments:
Securities gains		4			1			6			1
Net interest income plus noninterest
income – traditional ratio		38,432			34,745			74,636			69,210

Efficiency ratio – traditional		62.26	%		57.81	%		62.62	%		57.36	%

Sandy Spring Bancorp, Inc. and Subsidiaries
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except per share data)
	June 30						December 31
	2007			2006			2006
Assets
Cash and due from banks	$	60,816		$	48,354		$	54,945
Federal funds sold		57,083			11,258			48,978
Cash and cash equivalents		117,899			59,612			103,923

Interest-bearing deposits with banks		74,050			436			2,974
Residential mortgage loans held for sale (at fair value)		17,874			9,450			10,595
Investments available-for-sale (at fair value)		222,123			291,167			256,845
Investments held-to-maturity - fair value of $251,553
$282,438 and $273,206, respectively		248,463			279,221			267,344
Other equity securities		19,785			18,164			16,719

Total loans and leases		2,165,008			1,781,964			1,805,579
Less: allowance for loan and lease losses		(23,661	)		(18,910	)		(19,492	)
Net loans and leases		2,141,347			1,763,054			1,786,087

Premises and equipment, net		54,318			45,616			47,756
Accrued interest receivable		16,850			13,894			15,200
Goodwill		77,457			12,606			12,494
Other intangible assets, net		18,878			12,173			10,653
Other assets		92,365			83,135			79,867
Total assets	$	3,101,409		$	2,588,528		$	2,610,457

Liabilities
Noninterest-bearing deposits	$	490,545		$	420,744		$	394,662
Interest-bearing deposits		1,895,681			1,397,603			1,599,561
Total deposits		2,386,226			1,818,347			1,994,223

Short-term borrowings		334,566			484,203			314,732
Other long-term borrowings		8,038			1,983			1,808
Subordinated debentures		35,000			35,000			35,000
Accrued interest payable and other liabilities		31,324			20,082			26,917
Total liabilities		2,795,154			2,359,615			2,372,680

Stockholders' Equity
Common stock -- par value $1.00; shares authorized
50,000,000; shares issued and outstanding 16,451,621
14,785,758 and 14,826,805, respectively		16,452			14,786			14,827
Additional paid in capital		86,669			26,565			27,869
Retained earnings		207,430			189,191			199,102
Accumulated other comprehensive income(loss)		(4,296	)		(1,629	)		(4,021	)
Total stockholders' equity		306,255			228,913			237,777
Total liabilities and stockholders' equity	$	3,101,409		$	2,588,528		$	2,610,457

Certain reclassifications and restatements of information previously reported have been made to conform with current presentation.

Sandy Spring Bancorp, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2007		2006		2007		2006
Interest income:
Interest and fees on loans and leases	$	38,393	$	31,287	$	72,967	$	60,145
Interest on loans held for sale		272		142		467		292
Interest on deposits with banks		401		4		491		14
Interest and dividends on securities:
Taxable		3,750		3,369		7,621		6,400
Exempt from federal income taxes		2,581		2,928		5,308		5,944
Interest on federal funds sold		617		143		1,054		255
Total interest income		46,014		37,873		87,908		73,050
Interest expense:
Interest on deposits		15,577		8,794		29,365		16,468
Interest on short-term borrowings		3,586		4,650		7,067		8,399
Interest on long-term borrowings		652		577		1,262		1,154
Total interest expense		19,815		14,021		37,694		26,021
Net interest income		26,199		23,852		50,214		47,029
Provision for loan and lease losses		780		1,045		1,619		1,995
Net interest income after provision for loan and lease losses		25,419		22,807		48,595		45,034
Noninterest income:
Securities gains		4		1		6		1
Service charges on deposit accounts		2,630		1,950		4,938		3,798
Gains on sales of mortgage loans		773		549		1,411		1,331
Fees on sales of investment products		906		763		1,706		1,481
Trust and investment management fees		2,361		2,196		4,642		4,312
Insurance agency commissions		1,438		1,618		4,128		3,726
Income from bank owned life insurance		693		567		1,377		1,120
Visa check fees		717		612		1,307		1,147
Other income		1,351		1,139		2,264		2,325
Total noninterest income		10,873		9,395		21,779		19,241
Noninterest expenses:
Salaries and employee benefits		13,776		12,730		27,210		25,201
Occupancy expense of premises		2,709		2,039		5,126		4,165
Equipment expenses		1,501		1,412		3,103		2,728
Marketing		675		472		1,204		813
Outside data services		1,077		833		2,003		1,614
Amortization of intangible assets		1,031		742		1,833		1,484
Other expenses		4,190		2,600		8,094		5,179
Total noninterest expenses		24,959		20,828		48,573		41,184
Income before income taxes		11,333		11,374		21,801		23,091
Income tax expense		3,164		3,279		6,087		6,656
Net income	$	8,169	$	8,095	$	15,714	$	16,435
Basic net income per share	$	0.51	$	0.55	$	1.00	$	1.11
Diluted net income per share		0.51		0.54		1.00		1.10
Dividends declared per share		0.23		0.22		0.46		0.44

Certain reclassifications and restatements of information previously reported have been made to conform with current presentation.

Sandy Spring Bancorp, Inc. and Subsidiaries

Historical Trends in Quarterly Financial Data

2007

2006

(Dollars in thousands, except per share data)

Profitability for the quarter:

Tax-equivalent interest income

47,378

43,179

42,000

41,695

39,372

36,619

Interest expense

19,815

17,879

16,770

15,896

14,021

12,000

Tax-equivalent net interest income

27,563

25,300

25,230

25,799

25,351

24,619

Tax-equivalent adjustment

1,364

1,285

1,625

1,677

1,499

1,442

Provision for loan and lease losses

780

839

250

550

1,045

950

Noninterest income

10,873

10,906

10,064

9,590

9,395

9,846

Noninterest expenses

24,959

23,614

22,218

21,694

20,828

20,356

Income before income taxes

11,333

10,468

11,201

11,468

11,374

11,717

Income tax expense

3,164

2,923

2,887

3,346

3,279

3,377

Net Income

8,169

7,545

8,314

8,122

8,095

8,340

Financial ratios:

Return on average assets

1.10

1.12

1.26

1.24

1.27

1.36

Return on average equity

11.45

11.96

13.75

13.93

14.34

15.26

Net interest margin

4.08

4.07

4.14

4.25

4.30

4.35

Efficiency ratio - GAAP based *

67.33

67.62

65.99

64.35

62.65

61.64

Efficiency ratio - traditional *

62.26

63.01

60.85

59.20

57.81

56.91

Per share data:

Basic net income

0.51

0.49

0.56

0.55

0.56

Diluted net income

0.51

0.49

0.55

0.54

0.56

Dividends declared

0.23

0.22

Book value

18.62

17.51

16.04

15.92

15.48

15.21

Tangible book value

12.76

13.11

14.48

14.30

13.81

13.61

Average fully diluted shares

16,069,771

15,400,865

14,940,873

14,915,454

14,884,677

14,924,571

Noninterest income breakdown:

Securities gains

Service charges on deposit accounts

2,630

2,308

2,201

1,904

1,950

1,848

Gains on sales of mortgage loans

773

638

929

718

549

782

Fees on sales of investment products

906

800

696

783

763

718

Trust and investment management fees

2,361

2,281

2,286

2,164

2,196

2,116

Insurance agency commissions

1,438

2,690

1,345

1,406

1,618

2,108

Income from bank owned life insurance

693

684

639

591

567

553

Visa check fees

717

590

631

603

612

535

Other income

1,351

913

1,337

1,421

1,139

1,186

Total

10,873

10,906

10,064

9,590

9,395

9,846

Noninterest expense breakdown:

Salaries and employee benefits

13,776

13,434

12,695

12,622

12,730

12,471

Occupancy expense of premises

2,709

2,417

2,153

2,175

2,039

2,126

Equipment expenses

1,501

1,602

1,364

1,384

1,412

1,316

Marketing

675

529

610

1,160

472

341

Outside data services

1,077

926

717

872

833

781

Amortization of intangible assets

1,031

802

740

743

742

Other expenses

4,190

3,904

3,939

2,738

2,600

2,579

Total

24,959

23,614

22,218

21,694

20,828

20,356

* The GAAP based efficiency ratio is noninterest expenses divided by net interest income plus noninterest income from the Consolidated Statements of Income. The traditional, non-GAAP efficiency ratio excludes intangible asset amortization expenses from noninterest expenses; excludes security gains from noninterest income; and adds the tax-equivalent adjustment to net interest income. See the Reconciliation Table included with these Historical Trends in Quarterly Financial Data.

Sandy Spring Bancorp, Inc. and Subsidiaries

Historical Trends in Quarterly Financial Data

2007

2006

(Dollars in thousands, except per share data)

Balance sheets at quarter end:

Residential mortgage loans

427,252

404,177

390,852

396,811

386,805

428,698

Residential construction loans

154,444

144,744

151,399

175,067

169,564

166,767

Commercial mortgage loans

660,004

621,692

509,726

505,181

461,708

425,392

Commercial construction loans

236,278

225,108

192,547

185,615

214,628

188,477

Commercial loans and leases

316,409

282,854

216,238

204,023

200,712

193,524

Consumer loans

370,621

357,607

344,817

348,793

348,547

341,490

Total loans and leases

2,165,008

2,036,182

1,805,579

1,815,490

1,781,964

1,744,348

Less: allowance for loan and lease losses

(23,661

)

(22,186

)

(19,492

)

(19,433

)

(18,910

)

(17,860

)

Net loans and leases

2,141,347

2,013,996

1,786,087

1,796,057

1,763,054

1,726,488

Goodwill

77,457

53,913

12,494

12,606

12,596

Other intangible assets, net

18,878

15,244

10,653

11,431

12,173

12,916

Total assets

3,101,409

2,945,477

2,610,457

2,600,633

2,588,528

2,501,752

Total deposits

2,386,226

2,274,322

1,994,223

1,947,850

1,818,347

1,839,355

Customer repurchase agreements

113,622

114,712

99,382

129,213

235,853

181,520

Total stockholders' equity

306,255

275,319

237,777

235,868

228,913

225,137

Quarterly average balance sheets:

Residential mortgage loans

426,496

406,886

407,277

405,430

449,482

427,609

Residential construction loans

151,785

151,194

162,084

172,873

167,632

161,649

Commercial mortgage loans

630,335

565,277

504,698

465,989

436,036

424,467

Commercial construction loans

239,299

203,371

189,027

218,798

206,419

186,606

Commercial loans and leases

300,325

246,218

205,582

199,968

196,093

188,747

Consumer loans

362,221

353,668

346,030

346,639

345,194

339,299

Total loans and leases

2,110,461

1,926,614

1,814,698

1,809,697

1,800,856

1,728,377

Securities

523,507

551,566

544,877

583,156

554,157

555,061

Total earning assets

2,711,225

2,518,797

2,416,120

2,407,185

2,367,100

2,294,665

Total assets

2,979,820

2,743,890

2,610,023

2,600,092

2,560,633

2,484,687

Total interest-bearing liabilities

2,212,376

2,048,323

1,937,685

1,934,668

1,895,652

1,821,530

Noninterest-bearing demand deposits

450,887

408,954

407,659

410,912

419,454

418,214

Total deposits

2,290,413

2,099,409

1,970,953

1,851,098

1,819,255

1,799,213

Customer repurchase agreements

109,187

101,805

120,597

212,123

196,359

167,620

Stockholders' equity

286,040

255,781

239,921

231,364

226,440

221,599

Capital and credit quality measures:

Average equity to average assets

9.60

9.32

9.19

8.90

8.84

8.92

Loan and lease loss allowance to loans and leases

1.09

1.08

1.07

1.06

1.02

Nonperforming assets to total assets

0.71

0.24

0.15

0.10

0.12

Annualized net (charge-offs) recoveries to

average loans and leases

0.05

0.00

(0.01

0.00

0.01

Miscellaneous data:

Net (charge-offs) recoveries

($265

)

($191

)

($27

)

Nonperforming assets:

Non-accrual loans and leases

18,818

1,982

1,910

1,495

1,691

585

Loans and leases 90 days past due

3,347

5,084

1,823

2,346

988

2,473

Restructured loans and leases

Other real estate owned, net

182

Total nonperforming assets

22,165

7,066

3,915

3,841

2,679

3,058

Sandy Spring Bancorp, Inc. and Subsidiaries
CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES
(Dollars in thousands and tax-equivalent)

	Three Months Ended June 30,
	2007								2006
						Annualized								Annualized
	Average					Average			Average					Average
	Balances			Interest		Yield/Rate			Balances			Interest		Yield/Rate
Assets
Residential mortgage loans	$	426,496		$	6,413		6.01	%	$	449,482		$	6,458		5.74	%
Residential construction loans		151,785			2,759		7.29			167,632			3,046		7.29
Commercial mortgage loans		630,335			11,602		7.39			436,036			7,857		7.20
Commercial construction loans		239,299			5,428		9.10			206,419			4,468		8.74
Commercial loans and leases		300,325			6,157		8.21			196,093			3,938		8.05
Consumer loans		362,221			6,306		6.98			345,194			5,662		6.58
Total loans and leases		2,110,461			38,665		7.34			1,800,856			31,429		7.00
Securities		523,507			7,695		5.91			554,157			7,796		5.68
Interest-bearing deposits with banks		30,642			401		5.26			481			4		3.06
Federal funds sold		46,615			617		5.31			11,606			143		4.95
TOTAL EARNING ASSETS		2,711,225			47,378		7.01	%		2,367,100			39,372		6.68	%

Less: allowance for loan and lease losses		(22,642	)							(18,446	)
Cash and due from banks		58,076								46,705
Premises and equipment, net		51,509								45,714
Other assets		181,652								119,560
Total assets	$	2,979,820							$	2,560,633

Liabilities and Stockholders' Equity
Interest-bearing demand deposits	$	240,590		$	213		0.35	%	$	233,156		$	163		0.28	%
Regular savings deposits		161,066			137		0.34			190,322			188		0.40
Money market savings deposits		615,235			5,761		3.76			363,123			2,557		2.82
Time deposits		822,635			9,466		4.62			613,200			5,886		3.85
Total interest-bearing deposits		1,839,526			15,577		3.40			1,399,801			8,794		2.52
Borrowings		372,850			4,238		4.56			495,851			5,227		4.23
TOTAL INTEREST-BEARING LIABILITIES		2,212,376			19,815		3.59			1,895,652			14,021		2.97

Noninterest-bearing demand deposits		450,887								419,454
Other liabilities		30,517								19,087
Stockholder's equity		286,040								226,440
Total liabilities and stockholders' equity	$	2,979,820							$	2,560,633

Net interest income and spread				$	27,563		3.42	%				$	25,351		3.71	%
Less: tax equivalent adjustment					1,364								1,499
Net interest income					26,199								23,852

Interest income/earning assets							7.01	%							6.68	%
Interest expense/earning assets							2.93								2.38
Net interest margin							4.08	%							4.30	%


* Interest income includes the effects of annualized taxable-equivalent adjustments (reduced by the nondeductible portion of
interest expense) using the appropriate marginal federal income tax rate of 35.00% and a marginal state income tax rate of
6.55% (or a combined marginal federal and state rate of 39.26%) for 2007 and a marginal state income tax rate of 7.00% (or a
combined marginal and federal and state rate of 39.55%) for 2006, to increase tax-exempt interest income to a taxable-equivalent
basis. The annualized taxable-equivalent adjustment amounts utilized in the above table to compute yields aggregated to
$5.5 million in 2007 and $6.0 million in 2006.

Sandy Spring Bancorp, Inc. and Subsidiaries
CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES
(Dollars in thousands and tax-equivalent)

	Six Months Ended June 30,
	2007								2006
						Annualized								Annualized
	Average					Average			Average					Average
	Balances			Interest		Yield/Rate			Balances			Interest		Yield/Rate
Assets
Residential mortgage loans	$	416,745		$	12,491		5.99	%	$	438,606		$	12,592		5.74	%
Residential construction loans		151,492			5,476		7.29			164,657			5,880		7.20
Commercial mortgage loans		597,986			21,851		7.37			430,283			15,200		7.11
Commercial construction loans		221,434			10,009		9.12			196,568			8,275		8.52
Commercial loans and leases		273,421			11,190		8.24			192,440			7,547		7.90
Consumer loans		357,968			12,417		6.99			342,263			10,943		6.45
Total loans and leases		2,019,046			73,434		7.32			1,764,817			60,437		6.89
Securities		537,458			15,578		5.88			554,606			15,285		5.60
Interest-bearing deposits with banks		18,885			491		5.25			718			14		3.93
Federal funds sold		40,153			1,054		5.29			10,941			255		4.71
TOTAL EARNING ASSETS		2,615,542			90,557		6.98	%		2,331,082			75,991		6.57	%

Less: allowance for loan and lease losses		(21,663	)							(17,884	)
Cash and due from banks		55,182								46,140
Premises and equipment, net		50,383								45,663
Other assets		161,646								117,795
Total assets	$	2,861,090							$	2,522,796

Liabilities and Stockholders' Equity
Interest-bearing demand deposits	$	235,897			402		0.34	%	$	234,854			328		0.28	%
Regular savings deposits		162,046			293		0.36			194,777			403		0.42
Money market savings deposits		581,373			10,735		3.72			367,380			4,906		2.69
Time deposits		786,087			17,935		4.60			593,441			10,831		3.68
Total interest-bearing deposits		1,765,403			29,365		3.35			1,390,452			16,468		2.39
Borrowings		365,401			8,329		4.59			468,343			9,553		4.11
TOTAL INTEREST-BEARING LIABILITIES		2,130,804			37,694		3.57			1,858,795			26,021		2.82


Noninterest-bearing demand deposits		430,036								418,838
Other liabilities		29,241								21,130
Stockholder's equity		271,009								224,033
Total liabilities and stockholders' equity	$	2,861,090							$	2,522,796

Net interest income and spread				$	52,863		3.41	%				$	49,970		3.75	%
Less: tax equivalent adjustment					2,649								2,941
Net interest income					50,214								47,029

Interest income/earning assets							6.98	%							6.57	%
Interest expense/earning assets							2.90								2.25
Net interest margin							4.08	%							4.32	%


* Interest income includes the effects of annualized taxable-equivalent adjustments (reduced by the nondeductible portion of
interest expense) using the appropriate marginal federal income tax rate of 35.00% and a marginal state income tax rate of
6.55% (or a combined marginal federal and state rate of 39.26%) for 2007 and a marginal state income tax rate of 7.00% (or a
combined marginal and federal and state rate of 39.55%) for 2006, to increase tax-exempt interest income to a taxable-equivalent
basis. The annualized taxable-equivalent adjustment amounts utilized in the above table to compute yields aggregated to
$5.3 million in 2007 and $5.9 million in 2006.