FOR IMMEDIATE RELEASE

SANDY SPRING BANCORP REPORTS FOURTH QUARTER

AND FULL YEAR RESULTS

OLNEY, MARYLAND, January 24, 2008 — Sandy Spring Bancorp, Inc., (Nasdaq-SASR) the parent company of Sandy Spring Bank, today announced net income for the fourth quarter of 2007 of $8.4 million ($.51 per diluted share) compared to $8.3 million ($.55 per diluted share) for the fourth quarter of 2006 and $8.2 million ($.50 per diluted share) for the linked quarter of 2007.

Net income for the year ended December 31, 2007 totaled $32.3 million ($2.01 per diluted share) compared to $32.9 million ($2.20 per diluted share) for the prior year. Net income for 2007 includes after-tax merger costs of $0.9 million ($.06 per diluted share) for the acquisitions of Potomac Bank of Virginia (“Potomac”) and CN Bancorp, Inc. (“County”), which were completed in the first and second quarters of 2007, respectively.

Sandy Spring Bancorp’s return on average stockholders’ equity was 10.69% for the fourth quarter of 2007, compared to 13.75% for the same period in the prior year. Return on average assets for the fourth quarter of 2007 was 1.10%, compared to 1.26% for the fourth quarter of 2006.

For the year ended December 31, 2007, return on average stockholders’ equity was 11.12%, compared to 14.33% for the prior year. Return on average assets for the year ended December 31, 2007 was 1.10%, compared to 1.28% for the year ended December 31, 2006.

Fourth Quarter Highlights:

Net interest income increased 16% for the quarter and 11% for the year to date over the prior year periods.

Noninterest income increased 13% for the quarter and 14% for the year to date over the prior year periods.

Loans and deposits increased 26% and 14% respectively, compared to December 31, 2006.

Provision for loan and lease losses increased for both the quarter and full year in response to a larger portfolio and a higher level of nonperforming loans which increased to $34.4 million at December 31, 2007.

Net interest margin improved to 4.19% for the fourth quarter compared to 4.14% for the prior year quarter and 4.16% for the linked third quarter of 2007.

Commenced expense management initiatives as part of overall strategic business improvement program with a freeze of the defined benefit pension plan effective January 1, 2008.

Repurchased approximately 101,000 shares of company stock during the quarter at average cost of $28.35 per share.

“We had another solid quarter and showed improvement in many key performance areas even though our non-performing assets increased from the third quarter as economic conditions continue to be unpredictable and uncertain,” said Hunter R. Hollar, President and Chief Executive Officer of Sandy Spring Bancorp. “Both net interest income and non-interest income showed meaningful improvement over the prior year. Our net interest margin improved to 4.19% for the fourth quarter, compared to 4.14% for the prior year quarter and 4.16% for the linked third quarter of 2007.”

“During the fourth quarter we completed much of the initial groundwork and analysis for our strategic business improvement program, titled LIFT (Looking Inward for Tomorrow). This stage included a companywide evaluation of business practices, staffing levels, facilities and branches, with the goal of improving Sandy Spring Bank’s overall efficiency and focusing resources on more value-added activities,” said Hollar. “The implementation of initiatives generated through LIFT has begun and will continue through 2009, with a majority of the implementation efforts to be started in 2008.”

“We instituted a hiring freeze along with new, more stringent expense controls with respect to discretionary expenses and, in addition, eliminated an executive medical plan and have frozen the defined benefit pension plan, all of which will produce significant expense savings in the coming year. In fact, during the fourth quarter overall noninterest expenses declined over the prior linked quarter; similarly, the efficiency ratio improved on a linked quarter basis,” said Hollar.

LIFT Expectations

The financial benefits from LIFT will be derived from both expense management initiatives and revenue enhancements.

Sandy Spring Bank plans to achieve approximately $5.1 million of cost savings in 2008 through a combination of workforce reduction, changes in corporate benefit plans and other efficiencies. These other efficiencies include opportunities in reduced corporate real estate and occupancy costs, more controlled discretionary spending, and process re-engineering. LIFT will further institute a culture of efficiency at Sandy Spring by emphasizing the importance of expense discipline to our long-term success.

These changes are expected to result in employee severance and other implementation costs of about $1.5 million, the majority of which will be recognized during the first half of 2008.

In addition, Sandy Spring Bank intends to achieve at least $2.2 million in net revenue growth in 2008 through the implementation of various pricing and business growth enhancements driven by LIFT.

In total, Sandy Spring Bank expects to realize a net pretax financial benefit from LIFT of approximately $5.8 million in 2008, primarily in the latter half of the year, and expects to realize an additional $4.0 million of total pretax earnings benefit during 2009 from this initiative.

Review of Balance Sheet and Credit Quality

Comparing December 31, 2007 balances to December 31, 2006, total assets increased 17% to $3.0 billion due mainly to the County and Potomac acquisitions together with steady growth in the commercial loan portfolio. Total loans and leases increased 26% to $2.3 billion compared to the prior year. The two acquisitions accounted for approximately 62% of the year-over-year loan growth. Excluding these acquisitions, the loan portfolio increased 10% over the fourth quarter of the prior year. This increase was comprised mainly of a 12% increase in commercial loans. Compared to the linked third quarter of 2007, total loans increased 3%. Customer funding sources, which include deposits plus other short-term borrowings from core customers, increased 13% to $2.4 billion at December 31, 2007 compared to the prior year. Again, most of the growth in such funding sources was due to the two acquisitions. On a linked quarter basis, such customer funding sources decreased 1% compared to the third quarter of 2007. This decline was due primarily to intense market competition for deposits and seasonal factors coupled with the Company’s plan to utilize conservative deposit pricing to manage its liquidity position and net interest margin, together with some expected deposit runoff from the acquisitions.

Stockholders’ equity totaled $315.6 million at year-end, and represented 10.4% of total assets, compared to 9.1% at December 31, 2006. During the year, the Company repurchased 156,249 shares at an average cost of $28.04 per share. At December 31, 2007, 629,996 shares remained available for repurchase under the current authorization.

The provision for loan and lease losses totaled $1.7 million for the fourth quarter of 2007 compared to $0.3 million for the fourth quarter of 2006 and $0.8 million for the linked quarter of 2007. The provision for loan and lease losses totaled $4.1 million for the year ended December 31, 2007 compared to $2.8 million for the prior year. The allowance for loan and lease losses represented 1.10% of outstanding loans at December 31, 2007.

Non-performing assets totaled $34.9 million at December 31, 2007 compared to $25.8 million at September 30, 2007 and $3.9 million at December 31, 2006. The increase over the linked quarter of 2007 was due primarily to one commercial construction loan totaling $5.3 million which management believes is adequately reserved and four commercial real estate loans totaling $5.8 million which are well secured. The increase over the prior year also reflects one loan totaling $13.6 million that was put on non-accrual status in the second quarter of 2007.

Income Statement Review

Comparing the fourth quarter of 2007 and 2006, net interest income increased by $3.8 million, or 16%, due primarily to continued growth in the loan portfolio and higher loan yields, together with disciplined management of rates offered on time deposits to fund loan growth. These factors produced a net interest margin increase to 4.19% in 2007 from 4.14% in 2006.

Noninterest income increased to $11.4 million in the fourth quarter of 2007 as compared to $10.1 million in 2006, an increase of 13%. Service charges on deposit accounts increased 46% due primarily to higher overdraft fees while Visa® check fees increased 18% reflecting continued growth in electronic transactions. Trust and investment management fees increased 13% due primarily to growth in assets under management. Other noninterest income increased 33% primarily due to a gain on sale of a property of $0.3 million. These increases were somewhat offset by decreases of 36% in gains on sales of mortgage loans and 26% in fees on sales of investment products, both reflecting current market conditions.

Noninterest expenses were $25.3 million in the fourth quarter of 2007 compared to $22.2 million in 2006, an increase of $3.1 million or 14%. Equipment costs increased 34% due to higher service on equipment and computer software amortization. Outside data services increased 53% due mainly to the overall growth in the loan and deposit portfolios and the branches added from the acquisitions. Other expenses increased 26% due to higher consulting fees, franchise taxes and higher deposit insurance cost. The fourth quarter also included an expense accrual for possible Visa, Inc. litigation costs. Intangibles amortization increased $0.4 million or 52% as a result of the two acquisitions.

Comparing the year ended December 31, 2007 and 2006, net interest income increased by $10.1 million, or 11%, 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 4.13% in 2007 from 4.26% in 2006.

Noninterest income increased 14% for the year ended December 31, 2007 compared to 2006. Service charges on deposit accounts increased 41% due mainly to higher overdraft fees mentioned above while income from bank owned life insurance grew by 20% due to higher rates and insurance policies added from the two acquisitions. Visa® check fees increased 17% due to an increased volume of electronic transactions. These increases were somewhat offset by a decrease of 8% in gains on sales of mortgage loans as mentioned above.

Noninterest expenses were $99.8 million in 2007 compared to $85.1 million in 2006, an increase of $14.7 million or 17%. Salaries and benefits increased 9% due mainly to the acquisition of Potomac and County. This increase was somewhat offset by a $0.5 million reduction due to the elimination of an executive medical benefit plan. Occupancy expenses increased 22% due to rent increases on existing properties and an expanded branch footprint while expenses for outside data services increased 24% due to the overall growth of the loan and deposit portfolios and the ten new branches added from the acquisitions. Intangibles amortization increased $1.1 million or 38% as a result of the two acquisitions. Other expenses increased 47% due primarily to merger expenses of $1.5 million. Higher consulting and professional fees, franchise taxes and an expense accrual for possible Visa, Inc. litigation costs also contributed to this increase.

Conference Call

The Company’s management will host a conference call to discuss its fourth quarter and full year 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 800-860-2442; 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 5:00 p.m. (ET) March 6, 2008. A telephone voice replay will also be available during that same time period at 877-344-7529. Please use pass code #415036 to access.

About Sandy Spring Bancorp/Sandy Spring Bank

With $3.0 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 43 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									Twelve Months Ended
	December 31,						%			December 31,						%
	2007			2006			Change			2007			2006			Change
Profitability for the period:
Net interest income	$	27,400		$	23,605			16		$	104,826		$	94,756			11
Provision for loan and lease losses		1,725			250			590			4,094			2,795			46
Noninterest income		11,380			10,064			13			44,289			38,895			14
Noninterest expenses		25,316			22,218			14			99,788			85,096			17
Income before income taxes		11,739			11,201			5			45,233			45,760			(1	)
Net income		8,367		$	8,314			1			32,262			32,871			(2	)

Return on average assets		1.10	%		1.26	%					1.10	%		1.28	%
Return on average equity		10.69	%		13.75	%					11.12	%		14.33	%
Net interest margin		4.19	%		4.14	%					4.13	%		4.26	%
Efficiency ratio - GAAP based *		65.28	%		65.99	%					66.92	%		63.67	%
Efficiency ratio - traditional *		60.22	%		60.85	%					61.92	%		58.71	%

Per share data:
Basic net income	$	0.51		$	0.56			(9	)	$	2.01		$	2.22			(9	)
Diluted net income		0.51			0.55			(7	)		2.01			2.20			(9	)
Dividends declared		0.23			0.22			5			0.92			0.88			5
Book value		19.31			16.04			20			19.31			16.04			20
Tangible book value		13.60			14.48			(6	)		13.60			14.48			(6	)
Average fully diluted shares		16,422,161			14,940,873						16,087,310			14,926,965

At period-end:
Assets	$	3,043,953		$	2,610,457			17		$	3,043,953		$	2,610,457			17
Deposits		2,273,868			1,994,223			14			2,273,868			1,994,223			14
Loans and leases		2,277,031			1,805,579			26			2,277,031			1,805,579			26
Securities		445,273			540,908			(18	)		445,273			540,908			(18	)
Stockholders' equity		315,640			237,777			33			315,640			237,777			33

Capital and credit quality ratios:
Average equity to average assets		10.33	%		9.19	%					9.89	%		8.95	%
Allowance for loan and lease losses
to loans and leases		1.10	%		1.08	%					1.10	%		1.08	%
Nonperforming assets to total assets		1.15	%		0.15	%					1.15	%		0.15	%
Annualized net charge-offs to average
loans and leases		0.01	%		0.01	%					0.06	%		0.01	%

* 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						Twelve Months Ended
	December 31,						December 31,
	2007			2006			2007			2006
Noninterest expenses–GAAP based		25,316		$	22,218			99,788		$	85,096
Net interest income plus noninterest income–
GAAP based		38,780			33,669			149,115			133,651

Efficiency ratio–GAAP based		65.28	%		65.99	%		66.92	%		63.67	%

Noninterest expenses–GAAP based	$	25,316		$	22,218		$	99,788		$	85,096
Less non-GAAP adjustment:
Amortization of intangible assets		1,124			740			4,080			2,967
Noninterest expenses–traditional ratio		24,192			21,478			95,708			82,129

Net interest income plus noninterest income–
GAAP based		38,780			33,669			149,115			133,651
Plus non-GAAP adjustment:
Tax-equivalency		1,410			1,625			5,506			6,243
Less non-GAAP adjustments:
Securities gains		15			0			43			1
Net interest income plus noninterest
income – traditional ratio		40,175			35,294			154,578			139,893

Efficiency ratio – traditional		60.22	%		60.85	%		61.92	%		58.71	%

Sandy Spring Bancorp, Inc. and Subsidiaries
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except per share data)

	December 31
	2007			2006
Assets
Cash and due from banks	$	63,432		$	54,945
Federal funds sold & overnight investments		22,055			48,978
Cash and cash equivalents		85,487			103,923

Interest-bearing deposits with banks		365			2,974
Residential mortgage loans held for sale (at fair value)		7,089			10,595
Investments available-for-sale (at fair value)		186,801			256,845
Investments held-to-maturity - fair value of $240,995
and $273,206, respectively		234,706			267,344
Other equity securities		23,766			16,719

Total loans and leases		2,277,031			1,805,579
Less: allowance for loan and lease losses		(25,092	)		(19,492	)
Net loans and leases		2,251,939			1,786,087

Premises and equipment, net		54,457			47,756
Accrued interest receivable		14,955			15,200
Goodwill		76,585			12,494
Other intangible assets, net		16,630			10,653
Other assets		91,173			79,867
Total assets	$	3,043,953		$	2,610,457

Liabilities
Noninterest-bearing deposits	$	434,053		$	394,662
Interest-bearing deposits		1,839,815			1,599,561
Total deposits		2,273,868			1,994,223

Short-term borrowings		373,972			314,732
Other long-term borrowings		17,553			1,808
Subordinated debentures		35,000			35,000
Accrued interest payable and other liabilities		27,920			26,917
Total liabilities		2,728,313			2,372,680

Stockholders' Equity
Common stock -- par value $1.00; shares authorized
50,000,000; shares issued and outstanding 16,349,317
and 14,826,805, respectively		16,349			14,827
Additional paid in capital		83,970			27,869
Retained earnings		216,376			199,102
Accumulated other comprehensive income(loss)		(1,055	)		(4,021	)
Total stockholders' equity		315,640			237,777
Total liabilities and stockholders' equity	$	3,043,953		$	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

Twelve Months Ended

December 31,

2007

2006

2007

2006

Interest income:

Interest and fees on loans and leases

39,967

32,981

152,723

125,813

Interest on loans held for sale

114

225

815

739

Interest on deposits with banks

105

1,123

123

Interest and dividends on securities:

Taxable

3,157

3,642

13,989

14,132

Exempt from federal income taxes

2,392

2,772

10,168

11,555

Interest on federal funds sold

437

650

2,157

1,081

Total interest income

46,109

40,375

180,975

153,443

Interest expense:

Interest on deposits

14,653

12,488

59,916

39,334

Interest on short-term borrowings

3,408

3,707

13,673

17,049

Interest on long-term borrowings

648

575

2,560

2,304

Total interest expense

18,709

16,770

76,149

58,687

Net interest income

27,400

23,605

104,826

94,756

Provision for loan and lease losses

1,725

250

4,094

2,795

Net interest income after provision for loan and lease losses

25,675

23,355

100,732

91,961

Noninterest income:

Securities gains

Service charges on deposit accounts

3,211

2,201

11,148

7,903

Gains on sales of mortgage loans

590

929

2,739

2,978

Fees on sales of investment products

518

696

2,989

2,960

Trust and investment management fees

2,581

2,286

9,588

8,762

Insurance agency commissions

1,203

1,345

6,625

6,477

Income from bank owned life insurance

732

639

2,829

2,350

Visa check fees

747

631

2,784

2,381

Other income

1,783

1,337

5,544

5,083

Total noninterest income

11,380

10,064

44,289

38,895

Noninterest expenses:

Salaries and employee benefits

13,343

12,695

55,207

50,518

Occupancy expense of premises

2,288

2,153

10,360

8,493

Equipment expenses

1,829

1,364

6,563

5,476

Marketing

674

610

2,237

2,583

Outside data services

1,094

717

3,967

3,203

Amortization of intangible assets

1,124

740

4,080

2,967

Other expenses

4,964

3,939

17,374

11,856

Total noninterest expenses

25,316

22,218

99,788

85,096

Income before income taxes

11,739

11,201

45,233

45,760

Income tax expense

3,372

2,887

12,971

12,889

Net income

8,367

8,314

32,262

32,871

Basic net income per share

0.51

0.56

2.01

2.22

Diluted net income per share

0.51

0.55

2.01

2.20

Dividends declared per share

0.23

0.22

0.92

0.88

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
(Dollars in thousands, except per share data)

2007

2006

Profitability for the quarter:

Tax-equivalent interest income

47,519

48,405

47,378

43,179

42,000

41,695

39,372

36,619

Interest expense

18,709

19,746

19,815

17,879

16,770

15,896

14,021

12,000

Tax-equivalent net interest income

28,810

28,659

27,563

25,300

25,230

25,799

25,351

24,619

Tax-equivalent adjustment

1,410

1,447

1,364

1,285

1,625

1,677

1,499

1,442

Provision for loan and lease losses

1,725

750

780

839

250

550

1,045

950

Noninterest income

11,380

11,130

10,873

10,906

10,064

9,590

9,395

9,846

Noninterest expenses

25,316

25,899

24,959

23,614

22,218

21,694

20,828

20,356

Income before income taxes

11,739

11,693

11,333

10,468

11,201

11,468

11,374

11,717

Income tax expense

3,372

3,512

3,164

2,923

2,887

3,346

3,279

3,377

Net Income

8,367

8,181

8,169

7,545

8,314

8,122

8,095

8,340

Financial ratios:

Return on average assets

1.10

1.08

1.10

1.12

1.26

1.24

1.27

1.36

Return on average equity

10.69

10.55

11.45

11.96

13.75

13.93

14.34

15.26

Net interest margin

4.19

4.16

4.08

4.07

4.14

4.25

4.30

4.35

Efficiency ratio - GAAP based*

65.28

67.55

67.33

67.62

65.99

64.35

62.65

61.64

Efficiency ratio - traditional*

60.22

62.30

62.26

63.01

60.85

59.20

57.81

56.91

Per share data:

Basic net income

0.51

0.50

0.51

0.49

0.56

0.55

0.56

Diluted net income

0.51

0.50

0.51

0.49

0.55

0.54

0.56

Dividends declared

0.23

0.22

Book value

19.31

18.92

18.62

17.51

16.04

15.92

15.48

15.21

Tangible book value

13.60

13.17

12.76

13.11

14.48

14.30

13.81

13.61

Average fully diluted shares

16,422,161

16,508,922

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

3,211

2,999

2,630

2,308

2,201

1,904

1,950

1,848

Gains on sales of mortgage loans

590

738

773

638

929

718

549

782

Fees on sales of investment products

518

765

906

800

696

783

763

718

Trust and investment management fees

2,581

2,365

2,361

2,281

2,286

2,164

2,196

2,116

Insurance agency commissions

1,203

1,294

1,438

2,690

1,345

1,406

1,618

2,108

Income from bank owned life insurance

732

720

693

684

639

591

567

553

Visa check fees

747

730

717

590

631

603

612

535

Other income

1,783

1,497

1,351

913

1,337

1,421

1,139

1,186

Total

11,380

11,130

10,873

10,906

10,064

9,590

9,395

9,846

Noninterest expense breakdown:

Salaries and employee benefits

13,343

14,654

13,776

13,434

12,695

12,622

12,730

12,471

Occupancy expense of premises

2,288

2,946

2,709

2,417

2,153

2,175

2,039

2,126

Equipment expenses

1,829

1,631

1,501

1,602

1,364

1,384

1,412

1,316

Marketing

674

359

675

529

610

1,160

472

341

Outside data services

1,094

870

1,077

926

717

872

833

781

Amortization of intangible assets

1,124

1,123

1,031

802

740

743

742

Other expenses

4,964

4,316

4,190

3,904

3,939

2,738

2,600

2,579

Total

25,316

25,899

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
(Dollars in thousands, except per share data)

2007

2006

Balance sheets at quarter end:

Residential mortgage loans

456,305

439,091

427,252

404,177

390,852

396,811

386,805

428,698

Residential construction loans

166,981

154,908

154,444

144,744

151,399

175,067

169,564

166,767

Commercial mortgage loans

662,837

645,790

660,004

621,692

509,726

505,181

461,708

425,392

Commercial construction loans

262,840

246,569

236,278

225,108

192,547

185,615

214,628

188,477

Commercial loans and leases

351,773

343,653

316,409

282,854

216,238

204,023

200,712

193,524

Consumer loans

376,295

371,588

370,621

357,607

344,817

348,793

348,547

341,490

Total loans and leases

2,277,031

2,201,599

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

(25,092

)

(23,567

)

(23,661

)

(22,186

)

(19,492

)

(19,433

)

(18,910

)

(17,860

)

Net loans and leases

2,251,939

2,178,032

2,121,347

2,013,996

1,786,087

1,796,057

1,763,054

1,726,488

Goodwill

76,585

76,625

77,457

53,913

12,494

12,606

12,596

Other intangible assets, net

16,630

17,754

18,878

15,244

10,653

11,431

12,173

12,916

Total assets

3,043,953

2,965,492

3,101,409

2,945,477

2,610,457

2,600,633

2,588,528

2,501,752

Total deposits

2,273,868

2,280,102

2,386,226

2,274,322

1,994,223

1,947,850

1,818,347

1,839,355

Customer repurchase agreements

98,015

122,130

113,622

114,712

99,382

129,213

235,853

181,520

Total stockholders' equity

315,640

310,624

306,255

275,319

237,777

235,868

228,913

225,137

Quarterly average balance sheets:

Residential mortgage loans

453,568

441,190

426,496

406,886

407,277

405,430

449,482

427,609

Residential construction loans

163,922

151,306

151,785

151,194

162,084

172,873

167,632

161,649

Commercial mortgage loans

649,101

647,659

630,335

565,277

504,698

465,989

436,036

424,467

Commercial construction loans

252,705

244,975

239,299

203,371

189,027

218,798

206,419

186,606

Commercial loans and leases

339,744

323,439

300,325

246,218

205,582

199,968

196,093

188,747

Consumer loans

374,572

370,585

362,221

353,668

346,030

346,639

345,194

339,299

Total loans and leases

2,233,612

2,179,154

2,110,461

1,926,614

1,814,698

1,809,697

1,800,856

1,728,377

Securities

451,168

458,984

523,507

551,566

544,877

583,156

554,157

555,061

Total earning assets

2,725,801

2,733,572

2,711,225

2,518,797

2,416,120

2,407,185

2,367,100

2,294,665

Total assets

3,006,086

3,019,065

2,979,820

2,743,890

2,610,023

2,600,092

2,560,633

2,484,687

Total interest-bearing liabilities

2,222,387

2,214,606

2,212,376

2,048,323

1,937,685

1,934,668

1,895,652

1,821,530

Noninterest-bearing demand deposits

439,967

463,018

450,887

408,954

407,659

410,912

419,454

418,214

Total deposits

2,283,122

2,340,004

2,290,413

2,099,409

1,970,953

1,851,098

1,819,255

1,799,213

Customer repurchase agreements

112,828

113,425

109,187

101,805

120,597

212,123

196,359

167,620

Stockholders' equity

310,605

307,564

286,040

255,781

239,921

231,364

226,440

221,599

Capital and credit quality measures:

Average equity to average assets

10.33

10.19

9.60

9.32

9.19

8.90

8.84

8.92

Loan and lease loss allowance to loans and leases

1.10

1.07

1.09

1.08

1.07

1.06

1.02

Nonperforming assets to total assets

1.15

0.87

0.71

0.24

0.15

0.10

0.12

Annualized net (charge-offs) recoveries to

average loans and leases

(0.01

(0.16

(0.05

0.00

(0.01

0.00

0.01

Miscellaneous data:

Net (charge-offs) recoveries

($200

)

($844

)

($265

)

($191

)

($27

)

Nonperforming assets:

Non-accrual loans and leases

23,040

17,362

18,818

1,982

1,910

1,495

1,691

585

Loans and leases 90 days past due

11,362

8,009

3,347

5,084

1,823

2,346

988

2,473

Restructured loans and leases

Other real estate owned, net

461

431

182

Total nonperforming assets

34,863

25,802

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 December 31,
	2007								2006
						Annualized								Annualized
	Average					Average			Average					Average
	Balances			Interest		Yield/Rate			Balances			Interest		Yield/Rate
Assets
Residential mortgage loans	$	453,568		$	7,130		6.29	%	$	407,277		$	6,053		5.95	%
Residential construction loans		163,922			2,817		6.82			162,084			2,989		7.32
Commercial mortgage loans		649,101			11,642		7.12			504,698			9,411		7.40
Commercial construction loans		252,705			5,226		8.20			189,027			4,353		9.14
Commercial loans and leases		339,744			6,892		8.06			205,582			4,311		8.33
Consumer loans		374,572			6,374		6.75			346,030			6,089		6.98
Total loans and leases		2,233,612			40,081		7.13			1,814,698			33,206		7.27
Securities		451,168			6,959		6.07			544,877			8,039		5.82
Interest-bearing deposits with banks		3,557			42		4.64			8,017			105		5.20
Federal funds sold		37,464			437		4.62			48,528			650		5.31
TOTAL EARNING ASSETS		2,725,801			47,519		6.92	%		2,416,120			42,000		6.89	%

Less: allowance for loan and lease losses		(23,791	)							(19,354	)
Cash and due from banks		53,839								48,165
Premises and equipment, net		55,033								46,550
Other assets		195,204								118,542
Total assets	$	3,006,086							$	2,610,023

Liabilities and Stockholders' Equity
Interest-bearing demand deposits	$	236,251		$	182		0.31	%	$	218,005		$	160		0.29	%
Regular savings deposits		153,791			114		0.29			163,525			131		0.32
Money market savings deposits		735,526			6,460		3.48			495,365			4,553		3.65
Time deposits		717,587			7,897		4.37			686,399			7,644		4.42
Total interest-bearing deposits		1,843,155			14,653		3.15			1,563,294			12,488		3.17
Borrowings		379,232			4,056		4.25			374,391			4,282		4.54
TOTAL INTEREST-BEARING LIABILITIES		2,222,387			18,709		3.34			1,937,685			16,770		3.43

Noninterest-bearing demand deposits		439,967								407,659
Other liabilities		33,127								24,758
Stockholder's equity		310,605								239,921
Total liabilities and stockholders' equity	$	3,006,086							$	2,610,023

Net interest income and spread					28,810		3.58	%					25,230		3.46	%
Less: tax equivalent adjustment					1,410								1,625
Net interest income					27,400								23,605

Interest income/earning assets							6.92	%							6.89	%
Interest expense/earning assets							2.73								2.75
Net interest margin							4.19	%							4.14	%

*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 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 $5.6 million in 2007 and $6.5 million in 2006.

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

	Twelve Months Ended December 31,
	2007								2006
						Annualized								Annualized
	Average					Average			Average					Average
	Balances			Interest		Yield/Rate			Balances			Interest		Yield/Rate
Assets
Residential mortgage loans	$	431,563		$	26,394		6.12	%	$	422,347		$	24,581		5.82	%
Residential construction loans		154,578			11,047		7.15			166,079			12,142		7.31
Commercial mortgage loans		624,080			44,992		7.21			458,040			33,106		7.23
Commercial construction loans		235,250			20,828		8.85			200,270			17,592		8.78
Commercial loans and leases		302,671			24,910		8.23			197,650			15,959		8.07
Consumer loans		365,334			25,367		6.94			344,316			23,172		6.73
Total loans and leases		2,113,476			153,538		7.26			1,788,702			126,552		7.08
Securities		495,928			29,663		5.98			559,350			31,930		5.71
Interest-bearing deposits with banks		21,600			1,123		5.20			2,501			123		4.92
Federal funds sold		42,305			2,157		5.10			21,145			1,081		5.12
TOTAL EARNING ASSETS		2,673,309			186,481		6.98	%		2,371,698			159,686		6.73	%

Less: allowance for loan and lease losses		(22,771	)							(18,584	)
Cash and due from banks		54,294								46,741
Premises and equipment, net		52,604								45,980
Other assets		178,015								117,838
Total assets	$	2,935,451							$	2,563,673

Liabilities and Stockholders' Equity
Interest-bearing demand deposits	$	236,940			808		0.34	%	$	226,699			657		0.29	%
Regular savings deposits		165,134			535		0.32			182,610			687		0.38
Money market savings deposits		643,047			23,809		3.70			409,578			12,655		3.09
Time deposits		768,005			34,764		4.53			631,712			25,335		4.01
Total interest-bearing deposits		1,813,126			59,916		3.30			1,450,599			39,334		2.71
Borrowings		361,884			16,233		4.49			451,251			19,353		4.29
TOTAL INTEREST-BEARING LIABILITIES		2,175,010			76,149		3.50			1,901,850			58,687		3.08


Noninterest-bearing demand deposits		440,853								415,747
Other liabilities		29,364								16,716
Stockholder's equity		290,224								229,360
Total liabilities and stockholders' equity	$	2,935,451							$	2,563,673

Net interest income and spread					110,332		3.48	%					100,999		3.65	%
Less: tax equivalent adjustment					5,506								6,243
Net interest income					104,826								94,756

Interest income/earning assets							6.98	%							6.73	%
Interest expense/earning assets							2.85								2.47
Net interest margin							4.13	%							4.26	%