Sandy Spring Bancorp Announces Fourth Quarter Results

/EIN News/ -- OLNEY, Md., Jan. 28, 2025 (GLOBE NEWSWIRE) -- Sandy Spring Bancorp, Inc. (Nasdaq-SASR), the parent company of Sandy Spring Bank, reported a net loss of $39.5 million ($0.87 per diluted common share) for the quarter ended December 31, 2024, compared to net income of $16.2 million ($0.36 per diluted common share) for the third quarter of 2024 and $26.1 million ($0.58 per diluted common share) for the fourth quarter of 2023.   The current quarter's net loss is a result of a $54.4 million goodwill impairment charge determined during our annual goodwill impairment test based on the terms of the merger agreement with Atlantic Union Bankshares Corporation ("AUB").   The goodwill impairment is a non-cash charge and has no impact on the Company's regulatory capital ratios, cash flows, core operating performance or liquidity position.

The current quarter's core earnings were $21.0 million ($0.47 per diluted common share), compared to $17.9 million ($0.40 per diluted common share) for the quarter ended September 30, 2024 and $27.1 million ($0.60 per diluted common share) for the quarter ended December 31, 2023. Core earnings exclude the goodwill impairment charge, merger and acquisition expense, and the after-tax impact of amortization of intangibles, investment securities gains or losses and other non-recurring or extraordinary items. The current quarter's increase in core earnings as compared to the linked quarter was driven by higher net interest income coupled with higher non-interest income, and lower provision for credit losses, partially offset by higher adjusted non-interest expense. The total provision for credit losses was $4.5 million for the fourth quarter of 2024 compared to $6.3 million for the previous quarter and a credit of $3.4 million for the fourth quarter of 2023.

“We are pleased with our fourth quarter results, most notably our improved net interest margin, growth in core earnings, and reductions in brokered deposits,” said Daniel J. Schrider, Chair, President and CEO of Sandy Spring Bank. “We remain focused on serving our clients and building communities in the Greater Washington region.”

Fourth Quarter Highlights

• Total assets at December 31, 2024 decreased by 2% to $14.1 billion compared to $14.4 billion at September 30, 2024. This decline is predominantly driven by a $200.0 million reduction in FHLB advances and a resulting $231.4 million decline in cash and cash equivalents quarter-over-quarter.

• Total loans remained level at $11.5 billion as of December 31, 2024 compared to September 30, 2024. During the current quarter, AD&C and commercial business loans and lines increased by $71.7 million and $32.2 million, respectively, while the commercial investor real estate segment declined by $88.9 million. Total residential mortgage and consumer loan portfolios increased by $19.6 million during this period.

• Total deposits stayed relatively unchanged at $11.7 billion at December 31, 2024 compared to September 30, 2024. Interest-bearing deposits increased $106.1 million, while noninterest-bearing deposits declined $98.1 million. Growth in interest-bearing deposits was mainly experienced within interest checking accounts, which grew $122.9 million during the current quarter, while decline in noninterest-bearing deposit categories was driven by lower balances in commercial checking accounts. Total deposits, excluding brokered deposits, increased by $32.0 million quarter-over-quarter and represented 94% of total deposits as of December 31, 2024.

• The ratio of non-performing loans to total loans was 1.03% at December 31, 2024 compared to 1.09% at September 30, 2024 and 0.81% at December 31, 2023. The current quarter's decline in non-performing loans was mainly related to pay downs on several non-accrual loans along with a single commercial real estate loan that returned to an accrual status.

• Net interest income for the fourth quarter of 2024 grew $4.7 million or 6% compared to the previous quarter and $4.4 million or 5% compared to the fourth quarter of 2023. Compared to the previous quarter, interest income increased by $1.0 million, while interest expense decreased by $3.7 million.

• The net interest margin was 2.53% for the fourth quarter of 2024 compared to 2.44% for the third quarter of 2024 and 2.45% for the fourth quarter of 2023. Compared to the linked quarter, the rate paid on interest-bearing liabilities decreased 23 basis points, driven by a 26 basis point decline in the rate on interest-bearing deposits, while the yield on interest-earning assets declined by six basis points. The decline in the rate paid on interest-bearing deposits was attributable to a 50 basis point reduction in the federal funds rate during the current quarter and the associated actions taken by management to re-price the Company's funding base.

• Provision for credit losses directly attributable to the funded loan portfolio was $4.7 million for the current quarter compared to $6.3 million in the previous quarter and a credit of $2.6 million in the prior year quarter. The current quarter's provision expense is mainly attributable to a slight deterioration in the projected economic variables coupled with higher qualitative adjustments, partially offset by lower probability of recession. In addition, during the current quarter, the provision for unfunded commitments declined by $0.2 million, a result of higher utilization rates on lines of credit.

• Non-interest income for the fourth quarter of 2024 increased by 10% or $1.9 million compared to the linked quarter and grew by 31% or $5.1 million compared to the prior year quarter. The quarter-over-quarter increase was mainly due to an increase in income from bank-owned life insurance driven by one-time mortality proceeds received during the current quarter in combination with higher swap fees and higher wealth management income, which was partially offset by lower income from mortgage banking activities.

• Non-interest expense for the fourth quarter of 2024 increased by $61.3 million compared to the third quarter of 2024 and $67.1 million compared to the prior year quarter, due to the goodwill impairment charge of $54.4 million incurred during the current quarter. Excluding the goodwill impairment charge, adjusted non-interest expense was $79.8 million during the current quarter compared to $72.9 million in the linked quarter. This quarterly increase in adjusted non-interest expense was primarily due to a combination of merger and acquisition expense associated with the pending merger with AUB along with higher salaries and compensation benefits, partially offset by lower professional fees and services.

• We perform an annual goodwill impairment test as of October 1st of each year. During the current year, we utilized the terms incorporated in the merger agreement between the Company and AUB. The implied value of the Company utilized the stock conversion ratio in the merger agreement and used a weighted average approach to consider both AUB's most recent closing stock price prior to the merger announcement date, as well as the forward sale price for AUB common stock under the forward sale agreement announced simultaneous with the merger agreement. This valuation method resulted in the estimated fair value of the Company being below its book value and required the recording of a goodwill impairment charge of $54.4 million.

• Return on average assets (“ROA”) for the quarter ended December 31, 2024 was (1.09)% and return on average tangible common equity (“ROTCE”) was 5.46% compared to 0.46% and 5.88%, respectively, for the third quarter of 2024 and 0.73% and 9.26%, respectively, for the fourth quarter of 2023. On a non-GAAP basis, the current quarter's core ROA was 0.58% and core ROTCE was 6.80% compared to 0.50% and 5.88%, respectively, for the previous quarter and 0.76% and 9.26%, respectively, for the fourth quarter of 2023.

• The GAAP efficiency ratio was 124.61% for the fourth quarter of 2024, compared to 72.12% for the third quarter of 2024 and 68.33% for the fourth quarter of 2023. An elevated GAAP efficiency ratio for the current quarter was the result of higher non-interest expense due to the $54.4 million goodwill impairment charge. The non-GAAP efficiency ratio was 67.16% for the fourth quarter of 2024 compared to 69.06% for the third quarter of 2024 and 66.16% for the prior year quarter.

Balance Sheet and Credit Quality

Total assets were $14.1 billion at December 31, 2024, as compared to $14.4 billion at September 30, 2024. At December 31, 2024, total loans remained stable at $11.5 billion compared to the previous quarter. During this period, the growth in AD&C and commercial business loans and lines of $71.7 million or 6% and $32.2 million or 2%, respectively, was mostly offset by the decline in commercial investor real estate loans of $88.9 million or 2%. Total residential mortgage and consumer loan portfolios increased by $19.6 million or 1%.

Deposits stayed relatively unchanged at $11.7 billion at December 31, 2024 compared to September 30, 2024. During this period, noninterest-bearing deposits decreased $98.1 million or 3%, while interest-bearing deposits increased $106.1 million or 1%. The decline in noninterest-bearing deposit categories was driven by decreases in commercial checking accounts. Growth in interest-bearing deposits was seen predominantly in interest checking accounts, which grew $122.9 million or 8% during the current quarter. Total deposits, excluding brokered deposits, increased by $32.0 million quarter-over-quarter and remained at 94% of total deposits as of December 31, 2024 compared to September 30, 2024, reflecting continued strength and stability of the core deposit base. Total uninsured deposits at December 31, 2024 were approximately 37% of total deposits.

Total borrowings decreased $201.7 million or 23% at December 31, 2024 as compared to the previous quarter, primarily driven by a $200.0 million reduction in FHLB advances, of which $150 million related to scheduled maturities, while $50 million was prepaid generating a $0.5 million gain on debt extinguishment. At December 31, 2024, available unused sources of liquidity, which consist of available FHLB borrowings, fed funds, funds through the Federal Reserve Bank's discount window, as well as excess cash and unpledged investment securities, totaled $6.3 billion or 147% of uninsured deposits.

The tangible common equity to tangible assets ratio was 8.84% at December 31, 2024, compared to 8.83% at September 30, 2024.

At December 31, 2024, the Company had a total risk-based capital ratio of 15.38%, a common equity tier 1 risk-based capital ratio of 11.36%, a tier 1 risk-based capital ratio of 11.36%, and a tier 1 leverage ratio of 9.39%. These risk-based capital ratios compare to a total risk-based capital ratio of 15.53%, a common equity tier 1 risk-based capital ratio of 11.27%, a tier 1 risk-based capital ratio of 11.27%, and a tier 1 leverage ratio of 9.59% at September 30, 2024. All of these ratios remain well in excess of the mandated minimum regulatory requirements.

Non-performing loans include non-accrual loans and accruing loans 90 days or more past due. At December 31, 2024, non-performing loans totaled $119.4 million, compared to $125.3 million at September 30, 2024 and $91.8 million at December 31, 2023. The ratio of non-performing loans to total loans was 1.03% compared to 1.09% on a linked quarter basis. These levels of non-performing loans compare to 0.81% at December 31, 2023. The current quarter's decline in non-performing loans was mainly related to pay downs on several non-accrual loans along with a single commercial real estate loan that returned to an accrual status based on the borrower's historical payment performance. Total net charge-offs for the current quarter amounted to $1.7 million compared to $0.7 million for the third quarter of 2024 and net recoveries of $0.1 million for the fourth quarter of 2023.

At December 31, 2024, the allowance for credit losses was $134.4 million or 1.16% of outstanding loans and 113% of non-performing loans, compared to $131.4 million or 1.14% of outstanding loans and 105% of non-performing loans at the end of the previous quarter and $120.9 million or 1.06% of outstanding loans and 132% of non-performing loans at the end of the fourth quarter of 2023. The increase in the allowance for the current quarter compared to the previous quarter mainly reflects slight deterioration in the projected economic variables coupled with higher qualitative adjustments, partially offset by lower probability of economic recession.

Income Statement Review

Quarterly Results

Net loss was $39.5 million ($0.87 per diluted common share) for the three months ended December 31, 2024 compared to net income of $16.2 million ($0.36 per diluted common share) for the three months ended September 30, 2024 and $26.1 million ($0.58 per diluted common share) for the prior year quarter. The current quarter's net loss is predominantly related to the $54.4 million goodwill impairment charge.   The current quarter's core earnings were $21.0 million ($0.47 per diluted common share), compared to $17.9 million ($0.40 per diluted common share) for the previous quarter and $27.1 million ($0.60 per diluted common share) for the quarter ended December 31, 2023. The increase in the current quarter's core earnings compared to the linked quarter was driven primarily by higher net interest income and non-interest income, and lower provision for credit losses, partially offset by higher adjusted non-interest expense.

Net interest income for the fourth quarter of 2024 increased $4.7 million or 6% compared to the previous quarter and $4.4 million or 5% compared to the fourth quarter of 2023. During the current quarter, interest income increased $1.0 million, while interest expense declined $3.7 million. The higher interest rate environment during the current year was primarily responsible for a $5.4 million year-over-year increase in interest income, which outpaced the $1.0 million year-over-year growth in interest expense.

The net interest margin was 2.53% for the fourth quarter of 2024 compared to 2.44% for the third quarter of 2024 and 2.45% for the fourth quarter of 2023. The increase in the net interest margin during the current quarter was a result of a 23 basis point decrease in the rate paid on interest-bearing liabilities, driven by a 26 basis point decline in the rate paid on interest-bearing deposits, while the yield earned on interest-earning assets declined by six basis points. As compared to the prior year quarter, the yield on interest-earning assets increased eight basis points, while the rate paid on interest-bearing liabilities declined nine basis points, resulting in net interest margin increase of eight basis points.

The total provision for credit losses was $4.5 million for the fourth quarter of 2024 compared to $6.3 million for the previous quarter and a credit of $3.4 million for the fourth quarter of 2023. The provision for credit losses directly attributable to the funded loan portfolio was $4.7 million for the current quarter compared to $6.3 million for the third quarter of 2024 and a credit of $2.6 million for the fourth quarter of 2023. The current quarter's provision is mainly a reflection of a slight deterioration in the projected economic variables along with higher qualitative adjustments, partially offset by lower probability of economic recession. In addition, during the current quarter, the reserve for unfunded commitments declined to $1.3 million from $1.5 million in the previous quarter due to higher utilization rates on lines of credit.

Non-interest income for the fourth quarter of 2024 increased by 10% or $1.9 million compared to the linked quarter and grew by 31% or $5.1 million compared to the prior year quarter. The current quarter's increase in non-interest income as compared to the previous quarter was mainly driven by the $1.9 million increase in income from bank owned life insurance, generated by one-time mortality proceeds, $0.4 million of swap fee income, and $0.2 million increase in wealth management income, due to the overall favorable market performance, partially offset by $0.4 million decrease in income from mortgage banking activities, due to lower sales volumes.

Non-interest expense for the fourth quarter of 2024 increased $61.3 million or 84% compared to the third quarter of 2024 and $67.1 million or 100% compared to the fourth quarter of 2023. The increase over the comparative quarters was primarily due to the goodwill impairment charge of $54.4 million in the fourth quarter of 2024. Excluding the goodwill impairment charge, adjusted non-interest expense increased $6.9 million or 9% compared to the linked quarter. This quarter-over-quarter increase is predominantly attributable to $4.2 million in merger and acquisition expenses incurred during the current quarter, a $3.3 million increase in salaries and benefits, due to an increase in employee incentive compensation, and a $0.7 million increase in marketing expense. These increases were partially offset by the $1.8 million reduction in professional fees and services.

For the fourth quarter of 2024, the GAAP efficiency ratio was 124.61% compared to 72.12% for the third quarter of 2024 and 68.33% for the fourth quarter of 2023. The non-GAAP efficiency ratio was 67.16% for the current quarter as compared to 69.06% for the third quarter of 2024 and 66.16% for the fourth quarter of 2023.

ROA for the quarter ended December 31, 2024 was (1.09)% and ROTCE was 5.46% compared to 0.46% and 5.88%, respectively, for the third quarter of 2024 and 0.73% and 9.26%, respectively, for the fourth quarter of 2023. On a non-GAAP basis, the current quarter's core ROA was 0.58% and core ROTCE was 6.80% compared to 0.50% and 5.88% for the third quarter of 2024 and 0.76% and 9.26%, respectively, for the fourth quarter of 2023.

Explanation of Non-GAAP Financial Measures

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

• Tangible common equity and related measures are non-GAAP measures that exclude the impact of goodwill and other intangible assets.
• The non-GAAP efficiency ratio excludes goodwill impairment loss, merger and acquisition expense, amortization of intangible assets, investment securities gains/(losses), pension settlement expense, severance expense, contingent payment expense, and includes tax-equivalent income.
• Core earnings and the related measures of core earnings per diluted common share, core return on average assets and core return on average tangible common equity reflect net income exclusive of goodwill impairment loss, merger and acquisition expense, and after-tax impact of amortization of intangible assets, investment securities gains/(losses) and other non-recurring or extraordinary items.
• Pre-tax pre-provision net income excludes income tax expense and the provision (credit) for credit losses.

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 that may be presented by other companies. Please refer to the non-GAAP Reconciliation tables included with this release for a reconciliation of these non-GAAP measures to the most directly comparable GAAP measure.

About Sandy Spring Bancorp, Inc.

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

Source: Sandy Spring Bancorp, Inc.
Code: SASR-E

	For additional information or questions, please contact:
		Daniel J. Schrider, Chair, President & Chief Executive Officer, or
		Charles S. Cullum, E.V.P. & Chief Financial Officer
		Sandy Spring Bancorp
		17801 Georgia Avenue
		Olney, Maryland 20832
		1-800-399-5919
		Email:	DSchrider@sandyspringbank.com
			CCullum@sandyspringbank.com
		Website:	www.sandyspringbank.com
		Media Contact:
		Jennifer E. Schell, Division Executive, Marketing & Corporate Communications
		301-774-6400 x8331
		jschell@sandyspringbank.com

Forward-Looking Statements

Sandy Spring Bancorp’s forward-looking statements are subject to significant risks and uncertainties that may cause actual results to differ materially from those in such statements. These risks and uncertainties include, but are not limited to, the risks identified in our quarterly and annual reports and the following: changes in general business and economic conditions nationally or in the markets that we serve; changes in consumer and business confidence, investor sentiment, or consumer spending or savings behavior; changes in the level of inflation; changes in the demand for loans, deposits and other financial services that we provide; the possibility that future credit losses may be higher than currently expected; the impact of the interest rate environment on our business, financial condition and results of operations; the impact of compliance with changes in laws, regulations and regulatory interpretations, including changes in income taxes; changes in credit ratings assigned to us or our subsidiaries; competitive pressures among financial services companies; the ability to attract, develop and retain qualified employees; our ability to maintain the security of our data processing and information technology systems; the impact of changes in accounting policies, including the introduction of new accounting standards; the impact of judicial or regulatory proceedings; the impact of fiscal and governmental policies of the United States federal government; the impact of health emergencies, epidemics or pandemics; the effects of climate change; and the impact of natural disasters, extreme weather events, military conflict, terrorism or other geopolitical events; the possibility that the Company’s pending merger with AUB does not close when expected or at all because required regulatory or other approvals or conditions to closing are not received or satisfied on a timely basis or at all (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the merger); the risk that the benefits from the merger may not be fully realized or may take longer to realize than expected; and the risk of disruption to the Company’s business as a result of the pendency of the merger;. Sandy Spring Bancorp provides greater detail regarding some of these factors in its Form 10-K for the year ended December 31, 2023 and its Form 10-Q for the quarter ended September 30, 2024, including in the Risk Factors section of those reports, 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 December 31,								% Change			Year Ended December 31,								% Change
(Dollars in thousands, except per share data)			2024				2023							2024				2023
Results of operations:
Net interest income		$	86,086			$	81,696			5	%		$	327,126			$	354,550			(8	)%
Provision/ (credit) for credit losses			4,468				(3,445	)		N/M				14,192				(17,561	)		N/M
Non-interest income			21,646				16,560			31				79,315				67,078			18
Non-interest expense			134,241				67,142			100				343,288				275,054			25
Income/ (loss) before income tax expense			(30,977	)			34,559			N/M				48,961				164,135			(70	)
Net income/ (loss)			(39,453	)			26,100			N/M				19,935				122,844			(84	)
Net income/ (loss) attributable to common shareholders		$	(39,457	)		$	26,066			N/M			$	19,902			$	122,621			(84	)
Pre-tax pre-provision net income/ (loss) (1)		$	(26,509	)		$	31,114			N/M			$	63,153			$	146,574			(57	)
Return on average assets			(1.09	)%			0.73	%						0.14	%			0.87	%
Return on average common equity			(9.70	)%			6.70	%						1.25	%			8.04	%
Return on average tangible common equity (1)			5.46	%			9.26	%						6.73	%			11.06	%
Net interest margin			2.53	%			2.45	%						2.46	%			2.67	%
Efficiency ratio - GAAP basis (2)			124.61	%			68.33	%						84.46	%			65.24	%
Efficiency ratio - Non-GAAP basis (2)			67.16	%			66.16	%						67.07	%			60.99	%
Per share data:
Basic net income/ (loss) per common share		$	(0.87	)		$	0.58			N/M			$	0.44			$	2.74			(84	)%
Diluted net income/ (loss) per common share		$	(0.87	)		$	0.58			N/M			$	0.44			$	2.73			(84	)
Weighted average diluted common shares			45,133,834				45,009,574			—				45,227,487				44,947,263			1
Dividends declared per share		$	0.34			$	0.34			—			$	1.36			$	1.36			—
Book value per common share		$	34.51			$	35.36			(2	)		$	34.51			$	35.36			(2	)
Tangible book value per common share (1)		$	26.99			$	26.64			1			$	26.99			$	26.64			1
Outstanding common shares			45,140,417				44,913,561			1				45,140,417				44,913,561			1
Financial condition at period-end:
Investment securities		$	1,418,244			$	1,414,453			—	%		$	1,418,244			$	1,414,453			—	%
Loans			11,537,966				11,366,989			2				11,537,966				11,366,989			2
Assets			14,127,480				14,028,172			1				14,127,480				14,028,172			1
Deposits			11,745,665				10,996,538			7				11,745,665				10,996,538			7
Stockholders' equity			1,558,011				1,588,142			(2	)			1,558,011				1,588,142			(2	)
Capital ratios:
Tier 1 leverage (3)			9.39	%			9.51	%						9.39	%			9.51	%
Common equity tier 1 capital to risk-weighted assets (3)			11.36	%			10.90	%						11.36	%			10.90	%
Tier 1 capital to risk-weighted assets (3)			11.36	%			10.90	%						11.36	%			10.90	%
Total regulatory capital to risk-weighted assets (3)			15.38	%			14.92	%						15.38	%			14.92	%
Tangible common equity to tangible assets (4)			8.84	%			8.77	%						8.84	%			8.77	%
Average equity to average assets			11.26	%			10.97	%						11.31	%			10.87	%
Credit quality ratios:
Allowance for credit losses to loans			1.16	%			1.06	%						1.16	%			1.06	%
Non-performing loans to total loans			1.03	%			0.81	%						1.03	%			0.81	%
Non-performing assets to total assets			0.87	%			0.65	%						0.87	%			0.65	%
Allowance for credit losses to non-performing loans			112.59	%			131.59	%						112.59	%			131.59	%
Annualized net charge-offs/ (recoveries) to average loans (5)			0.06	%			—	%						0.03	%			0.01	%

N/M - not meaningful

(1)	Represents a non-GAAP measure.
(2)	The efficiency ratio - GAAP basis is non-interest expense divided by net interest income plus non-interest income from the Condensed Consolidated Statements of Income. The traditional efficiency ratio - Non-GAAP basis excludes goodwill impairment loss, merger and acquisition expense, intangible asset amortization, pension settlement expense, severance expense and contingent payment expense from non-interest expense; and investment securities gains/ (losses) 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 December 31, 2024.
(4)	The tangible common equity to tangible assets ratio is a non-GAAP ratio that divides assets excluding goodwill and other intangible assets into stockholders' equity after deducting goodwill and other intangible assets. See the Reconciliation Table included with these Financial Highlights.
(5)	Calculation utilizes average loans, excluding residential mortgage loans held-for-sale.

Sandy Spring Bancorp, Inc. and Subsidiaries
RECONCILIATION TABLE - UNAUDITED (CONTINUED)
OPERATING EARNINGS - METRICS

		Three Months Ended December 31,								Year Ended December 31,
(Dollars in thousands)			2024				2023				2024				2023
Core earnings (non-GAAP):
Net income/ (loss) (GAAP)		$	(39,453	)		$	26,100			$	19,935			$	122,844
Plus/ (less) non-GAAP adjustments:
Merger, acquisition and disposal expense(2)			4,164				—				4,164				—
Amortization of intangible assets (net of tax)(1)			1,937				1,047				6,801				3,898
Goodwill impairment loss(2)			54,391				—				54,391				—
Severance expense (net of tax)(1)			—				—				—				1,445
Pension settlement expense (net of tax)(1)			—				—				—				6,088
Investment securities gains/ losses			—				—				—				—
Contingent payment expense (net of tax)(1)			—				—				—				27
Core earnings (Non-GAAP)		$	21,039			$	27,147			$	85,291			$	134,302
Core earnings per diluted common share (non-GAAP):
Weighted average common shares outstanding - diluted (GAAP)			45,133,834				45,009,574				45,227,487				44,947,263
Earnings/ (loss) per diluted common share (GAAP)		$	(0.87	)		$	0.58			$	0.44			$	2.73
Core earnings per diluted common share (non-GAAP)		$	0.47			$	0.60			$	1.89			$	2.99
Core return on average assets (non-GAAP):
Average assets (GAAP)		$	14,362,321			$	14,090,423			$	14,129,795			$	14,055,645
Return on average assets (GAAP)			(1.09	)%			0.73	%			0.14	%			0.87	%
Core return on average assets (non-GAAP)			0.58	%			0.76	%			0.60	%			0.96	%
Return/ Core return on average tangible common equity (non-GAAP):
Net Income/ (loss) (GAAP)		$	(39,453	)		$	26,100			$	19,935			$	122,844
Plus: Amortization of intangible assets (net of tax)(1)			1,937				1,047				6,801				3,898
Plus: Goodwill impairment loss(2)			54,391				—				54,391				—
Net income adjusted (non-GAAP)		$	16,875			$	27,147			$	81,127			$	126,742
Average total stockholders' equity (GAAP)		$	1,617,633			$	1,546,312			$	1,597,456			$	1,528,242
Average goodwill			(356,341	)			(363,436	)			(361,653	)			(363,436	)
Average other intangible assets, net			(30,885	)			(20,162	)			(30,178	)			(18,596	)
Average tangible common equity (non-GAAP)		$	1,230,407			$	1,162,714			$	1,205,625			$	1,146,210
Return on average tangible common equity (non-GAAP)			5.46	%			9.26	%			6.73	%			11.06	%
Core return on average tangible common equity (non-GAAP)			6.80	%			9.26	%			7.07	%			11.72	%

(1)	Tax adjustments have been determined using the combined marginal federal and state rate of 25.48% and 25.37% for 2024 and 2023, respectively.
(2)	Adjustment is not tax-effected as it represents a tax nondeductible item.

Sandy Spring Bancorp, Inc. and Subsidiaries
RECONCILIATION TABLE - UNAUDITED

		Three Months Ended December 31,								Year Ended December 31,
(Dollars in thousands)			2024				2023				2024				2023
Pre-tax pre-provision net income:
Net income/ (loss) (GAAP)		$	(39,453	)		$	26,100			$	19,935			$	122,844
Plus/ (less) non-GAAP adjustments:
Income tax expense			8,476				8,459				29,026				41,291
Provision/ (credit) for credit losses			4,468				(3,445	)			14,192				(17,561	)
Pre-tax pre-provision net income/ (loss) (non-GAAP)		$	(26,509	)		$	31,114			$	63,153			$	146,574
Efficiency ratio (GAAP):
Non-interest expense		$	134,241			$	67,142			$	343,288			$	275,054
Net interest income plus non-interest income		$	107,732			$	98,256			$	406,441			$	421,628
Efficiency ratio (GAAP)			124.61	%			68.33	%			84.46	%			65.24	%
Efficiency ratio (Non-GAAP):
Non-interest expense		$	134,241			$	67,142			$	343,288			$	275,054
Less non-GAAP adjustments:
Amortization of intangible assets			2,599				1,403				9,126				5,223
Merger, acquisition and disposal expense			4,164				—				4,164				—
Goodwill impairment loss			54,391				—				54,391				—
Severance expense			—				—				—				1,939
Pension settlement expense			—				—				—				8,157
Contingent payment expense			—				—				—				36
Non-interest expense - as adjusted		$	73,087			$	65,739			$	275,607			$	259,699
Net interest income plus non-interest income		$	107,732			$	98,256			$	406,441			$	421,628
Plus non-GAAP adjustment:
Tax-equivalent income			1,100				1,113				4,459				4,157
Less/ (plus) non-GAAP adjustment:
Investment securities gains/ (losses)			—				—				—				—
Net interest income plus non-interest income - as adjusted		$	108,832			$	99,369			$	410,900			$	425,785
Efficiency ratio (Non-GAAP)			67.16	%			66.16	%			67.07	%			60.99	%
Tangible common equity ratio:
Total stockholders' equity		$	1,558,011			$	1,588,142			$	1,558,011			$	1,588,142
Goodwill			(309,045	)			(363,436	)			(309,045	)			(363,436	)
Other intangible assets, net			(30,748	)			(28,301	)			(30,748	)			(28,301	)
Tangible common equity		$	1,218,218			$	1,196,405			$	1,218,218			$	1,196,405
Total assets		$	14,127,480			$	14,028,172			$	14,127,480			$	14,028,172
Goodwill			(309,045	)			(363,436	)			(309,045	)			(363,436	)
Other intangible assets, net			(30,748	)			(28,301	)			(30,748	)			(28,301	)
Tangible assets		$	13,787,687			$	13,636,435			$	13,787,687			$	13,636,435
Tangible common equity ratio			8.84	%			8.77	%			8.84	%			8.77	%
Outstanding common shares			45,140,417				44,913,561				45,140,417				44,913,561
Tangible book value per common share		$	26.99			$	26.64			$	26.99			$	26.64

Sandy Spring Bancorp, Inc. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF CONDITION - UNAUDITED

(Dollars in thousands)		December 31, 2024				December 31, 2023
Assets
Cash and due from banks		$	80,698			$	82,257
Federal funds sold			—				245
Interest-bearing deposits with banks			438,265				463,396
Cash and cash equivalents			518,963				545,898
Residential mortgage loans held for sale (at fair value)			22,757				10,836
SBA loans held for sale			715				—
Investments held-to-maturity (fair values of $177,854 and $200,411 at December 31, 2024 and December 31, 2023, respectively)			215,747				236,165
Investments available-for-sale (at fair value)			1,140,783				1,102,681
Other investments, at cost			61,714				75,607
Total loans			11,537,966				11,366,989
Less: allowance for credit losses - loans			(134,401	)			(120,865	)
Net loans			11,403,565				11,246,124
Premises and equipment, net			55,998				59,490
Other real estate owned			3,265				—
Accrued interest receivable			45,627				46,583
Goodwill			309,045				363,436
Other intangible assets, net			30,748				28,301
Other assets			318,553				313,051
Total assets		$	14,127,480			$	14,028,172
Liabilities
Noninterest-bearing deposits		$	2,804,930			$	2,914,161
Interest-bearing deposits			8,940,735				8,082,377
Total deposits			11,745,665				10,996,538
Securities sold under retail repurchase agreements			68,911				75,032
Federal Reserve Bank borrowings			—				300,000
Advances from FHLB			250,000				550,000
Subordinated debt			371,400				370,803
Total borrowings			690,311				1,295,835
Accrued interest payable and other liabilities			133,493				147,657
Total liabilities			12,569,469				12,440,030
Stockholders' equity
Common stock -- par value $1.00; shares authorized 100,000,000; shares issued and outstanding 45,140,417 and 44,913,561 at December 31, 2024 and December 31, 2023, respectively.			45,140				44,914
Additional paid in capital			748,905				742,243
Retained earnings			856,613				898,316
Accumulated other comprehensive loss			(92,647	)			(97,331	)
Total stockholders' equity			1,558,011				1,588,142
Total liabilities and stockholders' equity		$	14,127,480			$	14,028,172

Sandy Spring Bancorp, Inc. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED

		Three Months Ended December 31,								Year Ended December 31,
(Dollars in thousands, except per share data)			2024				2023				2024			2023
Interest income:
Interest and fees on loans		$	153,262			$	148,655			$	609,571		$	579,960
Interest on mortgage loans held for sale			249				199				1,050			896
Interest on SBA loans held for sale			21				—				23			—
Interest on deposits with banks			7,997				8,456				25,398			22,435
Interest and dividend income on investment securities:
Taxable			7,821				6,454				29,140			26,992
Tax-advantaged			1,697				1,848				7,082			7,224
Interest on federal funds sold			—				4				8			17
Total interest income			171,047				165,616				672,272			637,524
Interest expense:
Interest on deposits			76,111				69,813				303,173			225,028
Interest on retail repurchase agreements and federal funds purchased			369				4,075				5,259			14,452
Interest on advances from FHLB			3,865				6,086				20,259			27,709
Interest on subordinated debt			4,616				3,946				16,455			15,785
Total interest expense			84,961				83,920				345,146			282,974
Net interest income			86,086				81,696				327,126			354,550
Provision/ (credit) for credit losses			4,468				(3,445	)			14,192			(17,561	)
Net interest income after provision/ (credit) for credit losses			81,618				85,141				312,934			372,111
Non-interest income:
Service charges on deposit accounts			2,998				2,749				11,763			10,447
Mortgage banking activities			1,091				792				5,615			5,536
Wealth management income			10,920				9,219				42,071			36,633
Income from bank owned life insurance			3,213				1,207				7,496			4,210
Bank card fees			457				454				1,750			1,769
Other income			2,967				2,139				10,620			8,483
Total non-interest income			21,646				16,560				79,315			67,078
Non-interest expense:
Salaries and employee benefits			44,309				35,482				159,858			160,192
Occupancy expense of premises			4,727				4,558				19,005			18,778
Equipment expenses			4,252				3,987				15,924			15,675
Marketing			2,013				1,242				5,363			5,103
Outside data services			3,228				3,000				12,642			11,186
FDIC insurance			2,761				2,615				11,396			9,461
Amortization of intangible assets			2,599				1,403				9,126			5,223
Merger, acquisition and disposal expense			4,164				—				4,164			—
Professional fees and services			4,805				5,628				21,208			17,982
Goodwill impairment loss			54,391				—				54,391			—
Other expenses			6,992				9,227				30,211			31,454
Total non-interest expense			134,241				67,142				343,288			275,054
Income/ (loss) before income tax expense			(30,977	)			34,559				48,961			164,135
Income tax expense			8,476				8,459				29,026			41,291
Net income/ (loss)		$	(39,453	)		$	26,100			$	19,935		$	122,844
Net income per share amounts:
Basic net income/ (loss) per common share		$	(0.87	)		$	0.58			$	0.44		$	2.74
Diluted net income/ (loss) per common share		$	(0.87	)		$	0.58			$	0.44		$	2.73
Dividends declared per share		$	0.34			$	0.34			$	1.36		$	1.36

Sandy Spring Bancorp, Inc. and Subsidiaries
HISTORICAL TRENDS - QUARTERLY FINANCIAL DATA - UNAUDITED

			2024																2023
(Dollars in thousands, except per share data)		Q4				Q3				Q2				Q1				Q4				Q3				Q2				Q1
Profitability for the quarter:
Tax-equivalent interest income		$	172,147			$	171,219			$	166,252			$	167,113			$	166,729			$	163,479			$	159,156			$	152,317
Interest expense			84,961				88,686				84,828				86,671				83,920				77,330				67,679				54,045
Tax-equivalent net interest income			87,186				82,533				81,424				80,442				82,809				86,149				91,477				98,272
Tax-equivalent adjustment			1,100				1,121				1,139				1,099				1,113				1,068				1,006				970
Provision/ (credit) for credit losses			4,468				6,316				1,020				2,388				(3,445	)			2,365				5,055				(21,536	)
Non-interest income			21,646				19,715				19,587				18,367				16,560				17,391				17,176				15,951
Non-interest expense			134,241				72,937				68,104				68,006				67,142				72,471				69,136				66,305
Income/ (loss) before income tax expense			(30,977	)			21,874				30,748				27,316				34,559				27,636				33,456				68,484
Income tax expense			8,476				5,665				7,941				6,944				8,459				6,890				8,711				17,231
Net income/ (loss)		$	(39,453	)		$	16,209			$	22,807			$	20,372			$	26,100			$	20,746			$	24,745			$	51,253
GAAP financial performance:
Return on average assets		(1.09)%					0.46	%			0.66	%			0.58	%			0.73	%			0.58	%			0.70	%			1.49	%
Return on average common equity		(9.70)%					4.01	%			5.81	%			5.17	%			6.70	%			5.35	%			6.46	%			13.93	%
Return on average tangible common equity			5.46	%			5.88	%			8.27	%			7.39	%			9.26	%			7.42	%			8.93	%			19.10	%
Net interest margin			2.53	%			2.44	%			2.46	%			2.41	%			2.45	%			2.55	%			2.73	%			2.99	%
Efficiency ratio - GAAP basis			124.61	%			72.12	%			68.19	%			69.60	%			68.33	%			70.72	%			64.22	%			58.55	%
Non-GAAP financial performance:
Pre-tax pre-provision net income/ (loss)		$	(26,509	)		$	28,190			$	31,768			$	29,704			$	31,114			$	30,001			$	38,511			$	46,948
Core after-tax earnings		$	21,039			$	17,936			$	24,400			$	21,916			$	27,147			$	27,766			$	27,136			$	52,253
Core return on average assets			0.58	%			0.50	%			0.70	%			0.63	%			0.76	%			0.78	%			0.77	%			1.52	%
Core return on average common equity			5.17	%			4.44	%			6.21	%			5.56	%			6.97	%			7.16	%			7.09	%			14.20	%
Core return on average tangible common equity			6.80	%			5.88	%			8.27	%			7.39	%			9.26	%			9.51	%			9.43	%			19.11	%
Core earnings per diluted common share		$	0.47			$	0.40			$	0.54			$	0.49			$	0.60			$	0.62			$	0.60			$	1.16
Efficiency ratio - Non-GAAP basis			67.16	%			69.06	%			65.31	%			66.73	%			66.16	%			60.91	%			60.68	%			56.87	%
Per share data:
Net income/ (loss) attributable to common shareholders		$	(39,457	)		$	16,205			$	22,800			$	20,346			$	26,066			$	20,719			$	24,712			$	51,084
Basic net income/ (loss) per common share		$	(0.87	)		$	0.36			$	0.51			$	0.45			$	0.58			$	0.46			$	0.55			$	1.14
Diluted net income/ (loss) per common share		$	(0.87	)		$	0.36			$	0.51			$	0.45			$	0.58			$	0.46			$	0.55			$	1.14
Weighted average diluted common shares			45,133,834				45,242,920				45,145,214				45,086,471				45,009,574				44,960,455				44,888,759				44,872,582
Dividends declared per share		$	0.34			$	0.34			$	0.34			$	0.34			$	0.34			$	0.34			$	0.34			$	0.34
Non-interest income:
Service charges on deposit accounts			2,998				3,009				2,939				2,817				2,749				2,704				2,606				2,388
Mortgage banking activities			1,091				1,529				1,621				1,374				792				1,682				1,817				1,245
Wealth management income			10,920				10,738				10,455				9,958				9,219				9,391				9,031				8,992
Income from bank owned life insurance			3,213				1,307				1,816				1,160				1,207				845				1,251				907
Bank card fees			457				435				445				413				454				450				447				418
Other income			2,967				2,697				2,311				2,645				2,139				2,319				2,024				2,001
Total non-interest income		$	21,646			$	19,715			$	19,587			$	18,367			$	16,560			$	17,391			$	17,176			$	15,951
Non-interest expense:
Salaries and employee benefits		$	44,309			$	41,030			$	37,821			$	36,698			$	35,482			$	44,853			$	40,931			$	38,926
Occupancy expense of premises			4,727				4,657				4,805				4,816				4,558				4,609				4,764				4,847
Equipment expenses			4,252				3,841				3,868				3,963				3,987				3,811				3,760				4,117
Marketing			2,013				1,320				1,288				742				1,242				729				1,589				1,543
Outside data services			3,228				3,025				3,286				3,103				3,000				2,819				2,853				2,514
FDIC insurance			2,761				2,773				2,951				2,911				2,615				2,333				2,375				2,138
Amortization of intangible assets			2,599				2,323				2,135				2,069				1,403				1,245				1,269				1,306
Merger, acquisition and disposal expense			4,164				—				—				—				—				—				—				—
Professional fees and services			4,805				6,577				4,946				4,880				5,628				4,509				4,161				3,684
Goodwill impairment loss			54,391				—				—				—				—				—				—				—
Other expenses			6,992				7,391				7,004				8,824				9,227				7,563				7,434				7,230
Total non-interest expense		$	134,241			$	72,937			$	68,104			$	68,006			$	67,142			$	72,471			$	69,136			$	66,305

Sandy Spring Bancorp, Inc. and Subsidiaries
HISTORICAL TRENDS - QUARTERLY FINANCIAL DATA - UNAUDITED

			2024																2023
(Dollars in thousands, except per share data)		Q4				Q3				Q2				Q1				Q4				Q3				Q2				Q1
Balance sheets at quarter end:
Commercial investor real estate loans		$	4,779,593			$	4,868,467			$	4,933,329			$	4,997,879			$	5,104,425			$	5,137,694			$	5,131,210			$	5,167,456
Commercial owner-occupied real estate loans			1,748,772				1,737,327				1,747,708				1,741,113				1,755,235				1,760,384				1,770,135				1,769,928
Commercial AD&C loans			1,327,292				1,255,609				1,184,296				1,090,259				988,967				938,673				1,045,742				1,046,665
Commercial business loans			1,653,135				1,620,926				1,601,510				1,509,592				1,504,880				1,454,709				1,423,614				1,437,478
Residential mortgage loans			1,537,589				1,529,786				1,521,890				1,511,624				1,474,521				1,432,051				1,385,743				1,328,524
Residential construction loans			49,028				53,639				78,027				97,685				121,419				160,345				190,690				223,456
Consumer loans			442,557				426,167				417,161				416,132				417,542				416,436				422,505				421,734
Total loans			11,537,966				11,491,921				11,483,921				11,364,284				11,366,989				11,300,292				11,369,639				11,395,241
Allowance for credit losses - loans			(134,401	)			(131,428	)			(125,863	)			(123,096	)			(120,865	)			(123,360	)			(120,287	)			(117,613	)
Residential mortgage loans held for sale			22,757				21,489				18,961				16,627				10,836				19,235				21,476				16,262
SBA loans held for sale			715				425				—				—				—				—				—				—
Investment securities			1,418,244				1,440,488				1,401,511				1,405,490				1,414,453				1,392,078				1,463,554				1,528,336
Total assets			14,127,480				14,383,073				14,008,343				13,888,133				14,028,172				14,135,085				13,994,545				14,129,007
Noninterest-bearing demand deposits			2,804,930				2,903,063				2,931,405				2,817,928				2,914,161				3,013,905				3,079,896				3,228,678
Total deposits			11,745,665				11,737,694				11,340,228				11,227,200				10,996,538				11,151,012				10,958,922				11,075,991
Customer repurchase agreements			68,911				70,767				75,038				71,529				75,032				66,581				74,510				47,627
Total stockholders' equity			1,558,011				1,628,837				1,599,004				1,589,364				1,588,142				1,537,914				1,539,032				1,536,865
Quarterly average balance sheets:
Commercial investor real estate loans		$	4,825,594			$	4,874,003			$	4,964,406			$	5,057,334			$	5,125,028			$	5,125,459			$	5,146,632			$	5,136,204
Commercial owner-occupied real estate loans			1,739,686				1,741,663				1,734,106				1,746,042				1,755,048				1,769,717				1,773,039				1,769,680
Commercial AD&C loans			1,300,966				1,253,035				1,133,506				1,030,763				960,646				995,682				1,057,205				1,082,791
Commercial business loans			1,606,641				1,579,001				1,551,798				1,508,336				1,433,035				1,442,518				1,441,489				1,444,588
Residential mortgage loans			1,535,924				1,526,445				1,518,748				1,491,277				1,451,614				1,406,929				1,353,809				1,307,761
Residential construction loans			47,788				64,684				86,638				110,456				142,325				174,204				211,590				223,313
Consumer loans			433,185				421,003				417,206				417,539				419,299				421,189				423,306				424,122
Total loans			11,489,784				11,459,834				11,406,408				11,361,747				11,286,995				11,335,698				11,407,070				11,388,459
Residential mortgage loans held for sale			13,768				19,889				14,497				8,142				10,132				13,714				17,480				8,324
SBA loans held for sale			591				65				—				—				—				—				—
Investment securities			1,542,401				1,531,378				1,538,624				1,536,127				1,544,173				1,589,342				1,639,324				1,679,593
Interest-earning assets			13,713,618				13,474,697				13,292,995				13,411,810				13,462,583				13,444,117				13,423,589				13,316,165
Total assets			14,362,321				14,136,037				13,956,261				14,061,935				14,090,423				14,086,342				14,094,653				13,949,276
Noninterest-bearing demand deposits			2,813,545				2,783,906				2,790,620				2,730,295				2,958,254				3,041,101				3,137,971				3,480,433
Total deposits			11,807,983				11,483,524				11,245,476				11,086,145				11,089,587				11,076,724				10,928,038				11,049,991
Customer repurchase agreements			65,253				63,436				62,161				72,836				66,622				67,298				58,382				60,626
Total interest-bearing liabilities			9,792,134				9,600,905				9,441,015				9,583,074				9,418,666				9,332,617				9,257,652				8,806,720
Total stockholders' equity			1,617,633				1,607,377				1,579,582				1,584,902				1,546,312				1,538,553				1,535,465				1,491,929
Financial measures:
Average equity to average assets			11.26	%			11.37	%			11.32	%			11.27	%			10.97	%			10.92	%			10.89	%			10.70	%
Average investment securities to average earning assets			11.25	%			11.36	%			11.57	%			11.45	%			11.47	%			11.82	%			12.21	%			12.61	%
Average loans to average earning assets			83.78	%			85.05	%			85.81	%			84.71	%			83.84	%			84.32	%			84.98	%			85.52	%
Loans to assets			81.67	%			79.90	%			81.98	%			81.83	%			81.03	%			79.94	%			81.24	%			80.65	%
Loans to deposits			98.23	%			97.91	%			101.27	%			101.22	%			103.37	%			101.34	%			103.75	%			102.88	%
Assets under management		$	6,577,150			$	6,567,752			$	6,215,697			$	6,165,509			$	5,999,520			$	5,536,499			$	5,742,888			$	5,477,560
Capital measures:
Tier 1 leverage(1)			9.39	%			9.59	%			9.70	%			9.56	%			9.51	%			9.50	%			9.42	%			9.44	%
Common equity tier 1 capital to risk-weighted assets(1)			11.36	%			11.27	%			11.28	%			10.96	%			10.90	%			10.83	%			10.65	%			10.53	%
Tier 1 capital to risk-weighted assets(1)			11.36	%			11.27	%			11.28	%			10.96	%			10.90	%			10.83	%			10.65	%			10.53	%
Total regulatory capital to risk-weighted assets(1)			15.38	%			15.53	%			15.49	%			15.05	%			14.92	%			14.85	%			14.60	%			14.43	%
Book value per common share		$	34.51			$	36.10			$	35.45			$	35.37			$	35.36			$	34.26			$	34.31			$	34.37
Outstanding common shares			45,140,417				45,125,078				45,109,671				44,940,147				44,913,561				44,895,158				44,862,369				44,712,497

(1)	Estimated ratio at December 31, 2024.

Sandy Spring Bancorp, Inc. and Subsidiaries
LOAN PORTFOLIO QUALITY DETAIL - UNAUDITED

			2024												2023
(Dollars in thousands)		December 31,			September 30,			June 30,			March 31,			December 31,			September 30,			June 30,			March 31,
Non-performing assets:
Loans 90 days past due:
Commercial real estate:
Commercial investor real estate		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	215
Commercial owner-occupied real estate			—			—			—			—			—			—			—			—
Commercial AD&C			—			—			—			—			—			—			—			—
Commercial business			—			—			—			20			20			415			29			3,002
Residential real estate:
Residential mortgage			232			399			338			340			342			—			692			352
Residential construction			—			—			—			—			—			—			—			—
Consumer			—			—			—			—			—			—			—			—
Total loans 90 days past due			232			399			338			360			362			415			721			3,569
Non-accrual loans:
Commercial real estate:
Commercial investor real estate			58,071			57,578			55,498			55,579			58,658			20,108			20,381			15,451
Commercial owner-occupied real estate			7,008			9,639			9,403			4,394			4,640			4,744			4,846			4,949
Commercial AD&C			31,314			31,816			2,127			556			1,259			1,422			569			—
Commercial business			7,590			9,044			8,455			7,164			10,051			9,671			9,393			9,443
Residential real estate:
Residential mortgage			10,939			11,996			12,228			11,835			12,332			10,766			10,153			8,935
Residential construction			521			539			539			542			443			449			—			—
Consumer			3,697			4,258			4,400			4,011			4,102			4,187			3,396			4,900
Total non-accrual loans			119,140			124,870			92,650			84,081			91,485			51,347			48,738			43,678
Total non-performing loans			119,372			125,269			92,988			84,441			91,847			51,762			49,459			47,247
Other real estate owned (OREO)			3,265			3,265			2,700			2,700			—			261			611			645
Total non-performing assets		$	122,637		$	128,534		$	95,688		$	87,141		$	91,847		$	52,023		$	50,070		$	47,892

		For the Quarter Ended,
(Dollars in thousands)		December 31, 2024				September 30, 2024				June 30, 2024				March 31, 2024				December 31, 2023			z	September 30, 2023				June 30, 2023				March 31, 2023
Analysis of non-accrual loan activity:
Balance at beginning of period		$	124,870			$	92,650			$	84,081			$	91,485			$	51,347			$	48,738			$	43,678			$	34,782
Non-accrual balances transferred to OREO			—				(565	)			—				(2,700	)			—				—				—				—
Non-accrual balances charged-off			(1,698	)			(787	)			—				(1,550	)			—				(183	)			(2,049	)			(126	)
Net payments or draws			(5,065	)			(3,095	)			(1,427	)			(4,017	)			(7,619	)			(1,545	)			(1,654	)			(10,212	)
Loans placed on non-accrual			2,847				36,667				10,038				1,490				47,920				4,967				9,276				19,714
Non-accrual loans brought current			(1,814	)			—				(42	)			(627	)			(163	)			(630	)			(513	)			(480	)
Balance at end of period		$	119,140			$	124,870			$	92,650			$	84,081			$	91,485			$	51,347			$	48,738			$	43,678
Analysis of allowance for credit losses - loans:
Balance at beginning of period		$	131,428			$	125,863			$	123,096			$	120,865			$	123,360			$	120,287			$	117,613			$	136,242
Provision/ (credit) for credit losses - loans			4,653				6,310				2,961				3,331				(2,574	)			3,171				4,454				(18,945	)
Less loans charged-off, net of recoveries:
Commercial real estate:
Commercial investor real estate			(3	)			397				(3	)			(2	)			(3	)			(3	)			(14	)			(5	)
Commercial owner-occupied real estate			(30	)			(27	)			(27	)			(27	)			(27	)			(25	)			(27	)			(26	)
Commercial AD&C			(23	)			111				(23	)			(283	)			—				—				—				—
Commercial business			1,656				250				(28	)			1,550				(105	)			15				363				(127	)
Residential real estate:
Residential mortgage			(7	)			(35	)			39				(6	)			(6	)			(4	)			35				21
Residential construction			—				—				—				—				—				—				—				—
Consumer			87				49				236				(132	)			62				115				1,423				(179	)
Net charge-offs/ (recoveries)			1,680				745				194				1,100				(79	)			98				1,780				(316	)
Balance at the end of period		$	134,401			$	131,428			$	125,863			$	123,096			$	120,865			$	123,360			$	120,287			$	117,613
Asset quality ratios:
Non-performing loans to total loans			1.03	%			1.09	%			0.81	%			0.74	%			0.81	%			0.46	%			0.44	%			0.41	%
Non-performing assets to total assets			0.87	%			0.89	%			0.68	%			0.63	%			0.65	%			0.37	%			0.36	%			0.34	%
Allowance for credit losses to total loans			1.16	%			1.14	%			1.10	%			1.08	%			1.06	%			1.09	%			1.06	%			1.03	%
Allowance for credit losses to non-performing loans			112.59	%			104.92	%			135.35	%			145.78	%			131.59	%			238.32	%			243.21	%			248.93	%
Annualized net charge-offs/ (recoveries) to average loans			0.06	%			0.03	%			0.01	%			0.04	%			—	%			—	%			0.06	%			(0.01	)%

Sandy Spring Bancorp, Inc. and Subsidiaries
CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES - UNAUDITED

		Three Months Ended December 31,
			2024										2023
(Dollars in thousands and tax-equivalent)		Average Balances				Interest (1)			Annualized Average Yield/Rate			Average Balances				Interest (1)			Annualized Average Yield/Rate
Assets
Commercial investor real estate loans		$	4,825,594			$	57,898		4.77	%		$	5,125,028			$	60,909		4.72	%
Commercial owner-occupied real estate loans			1,739,686				21,497		4.92				1,755,048				21,011		4.75
Commercial AD&C loans			1,300,966				24,303		7.43				960,646				20,510		8.47
Commercial business loans			1,606,641				26,374		6.53				1,433,035				23,822		6.60
Total commercial loans			9,472,887				130,072		5.46				9,273,757				126,252		5.40
Residential mortgage loans			1,535,924				14,676		3.82				1,451,614				12,984		3.58
Residential construction loans			47,788				672		5.59				142,325				1,515		4.22
Consumer loans			433,185				8,496		7.80				419,299				8,543		8.08
Total residential and consumer loans			2,016,897				23,844		4.72				2,013,238				23,042		4.56
Total loans (2)			11,489,784				153,916		5.33				11,286,995				149,294		5.25
Residential mortgage loans held for sale			13,768				249		7.24				10,132				199		7.86
SBA loans held for sale			591				21		14.50				—				—		—
Taxable securities			1,214,327				7,821		2.58				1,193,408				6,454		2.16
Tax-advantaged securities			328,074				2,143		2.61				350,765				2,322		2.64
Total investment securities (3)			1,542,401				9,964		2.58				1,544,173				8,776		2.27
Interest-bearing deposits with banks			667,074				7,997		4.77				621,007				8,456		5.40
Federal funds sold			—				—		—				276				4		5.43
Total interest-earning assets			13,713,618				172,147		5.00				13,462,583				166,729		4.92
Less: allowance for credit losses - loans			(131,565	)									(121,851	)
Cash and due from banks			77,280										89,143
Premises and equipment, net			56,925										69,162
Other assets			646,063										591,386
Total assets		$	14,362,321									$	14,090,423
Liabilities and Stockholders' Equity
Interest-bearing demand deposits		$	1,519,835			$	6,510		1.70	%		$	1,474,748			$	5,612		1.51	%
Regular savings deposits			1,763,353				13,768		3.11				1,153,610				9,715		3.34
Money market savings deposits			3,116,359				26,657		3.40				2,697,930				24,456		3.60
Time deposits			2,594,891				29,176		4.47				2,805,045				30,030		4.25
Total interest-bearing deposits			8,994,438				76,111		3.37				8,131,333				69,813		3.41
Repurchase agreements			65,253				327		2.00				66,622				354		2.11
Federal funds purchased and Federal Reserve Bank borrowings			3,525				42		4.69				300,000				3,721		4.92
Advances from FHLB			357,609				3,865		4.30				550,000				6,086		4.39
Subordinated debt			371,309				4,616		4.97				370,711				3,946		4.26
Total borrowings			797,696				8,850		4.41				1,287,333				14,107		4.35
Total interest-bearing liabilities			9,792,134				84,961		3.45				9,418,666				83,920		3.54
Noninterest-bearing demand deposits			2,813,545										2,958,254
Other liabilities			139,009										167,191
Stockholders' equity			1,617,633										1,546,312
Total liabilities and stockholders' equity		$	14,362,321									$	14,090,423
Tax-equivalent net interest income and spread						$	87,186		1.55	%						$	82,809		1.38	%
Less: tax-equivalent adjustment							1,100										1,113
Net interest income						$	86,086									$	81,696
Interest income/earning assets									5.00	%									4.92	%
Interest expense/earning assets									2.47										2.47
Net interest margin									2.53	%									2.45	%

(1)	Tax-equivalent income has been adjusted using the combined marginal federal and state rate of 25.48% and 25.37% for 2024 and 2023, respectively. The annualized taxable-equivalent adjustments utilized in the above table to compute yields aggregated to $1.1 million and $1.1 million in 2024 and 2023, respectively.
(2)	Non-accrual loans are included in the average balances.
(3)	Available-for-sale investments are presented at amortized cost.

Sandy Spring Bancorp, Inc. and Subsidiaries
CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES - UNAUDITED

		Year Ended December 31,
			2024										2023
(Dollars in thousands and tax-equivalent)		Average Balances				Interest (1)			Annualized Average Yield/Rate			Average Balances				Interest (1)			Annualized Average Yield/Rate
Assets
Commercial investor real estate loans		$	4,929,894			$	234,402		4.75	%		$	5,133,279			$	237,976		4.64	%
Commercial owner-occupied real estate loans			1,740,376				84,587		4.86				1,766,839				82,049		4.64
Commercial AD&C loans			1,180,100				93,082		7.89				1,023,669				81,515		7.96
Commercial business loans			1,561,616				105,400		6.75				1,440,382				92,080		6.39
Total commercial loans			9,411,986				517,471		5.50				9,364,169				493,620		5.27
Residential mortgage loans			1,518,170				56,644		3.73				1,380,496				48,909		3.54
Residential construction loans			77,276				3,880		5.02				187,599				6,817		3.63
Consumer loans			422,260				34,189		8.10				421,963				32,946		7.81
Total residential and consumer loans			2,017,706				94,713		4.69				1,990,058				88,672		4.46
Total loans (2)			11,429,692				612,184		5.36				11,354,227				582,292		5.13
Residential mortgage loans held for sale			14,089				1,050		7.45				12,421				896		7.21
SBA loans held for sale			165				23		14.17				—				—		—
Taxable securities			1,200,218				29,140		2.43				1,254,739				26,992		2.15
Tax-advantaged securities			336,913				8,928		2.65				357,933				9,049		2.53
Total investment securities (3)			1,537,131				38,068		2.48				1,612,672				36,041		2.23
Interest-bearing deposits with banks			492,649				25,398		5.16				432,392				22,435		5.19
Federal funds sold			216				8		3.79				393				17		4.26
Total interest-earning assets			13,473,942				676,731		5.02				13,412,105				641,681		4.78
Less: allowance for credit losses - loans			(125,131	)									(124,624	)
Cash and due from banks			81,761										93,494
Premises and equipment, net			58,571										69,886
Other assets			640,652										604,784
Total assets		$	14,129,795									$	14,055,645
Liabilities and Stockholders' Equity
Interest-bearing demand deposits		$	1,480,668			$	25,368		1.71	%		$	1,429,219			$	16,077		1.12	%
Regular savings deposits			1,643,305				56,365		3.43				784,575				17,546		2.24
Money market savings deposits			2,914,712				105,847		3.63				2,974,580				93,432		3.14
Time deposits			2,588,713				115,593		4.47				2,695,232				97,973		3.64
Total interest-bearing deposits			8,627,398				303,173		3.51				7,883,606				225,028		2.85
Repurchase agreements			65,913				1,370		2.08				63,259				915		1.45
Federal funds purchased and Federal Reserve Bank borrowings			75,227				3,889		5.17				273,508				13,537		4.95
Advances from FHLB			465,164				20,259		4.36				615,082				27,709		4.50
Subordinated debt			371,085				16,455		4.43				370,487				15,785		4.26
Total borrowings			977,389				41,973		4.29				1,322,336				57,946		4.38
Total interest-bearing liabilities			9,604,787				345,146		3.59				9,205,942				282,974		3.07
Noninterest-bearing demand deposits			2,779,696										3,152,699
Other liabilities			147,856										168,762
Stockholders' equity			1,597,456										1,528,242
Total liabilities and stockholders' equity		$	14,129,795									$	14,055,645
Tax-equivalent net interest income and spread						$	331,585		1.43	%						$	358,707		1.71	%
Less: tax-equivalent adjustment							4,459										4,157
Net interest income						$	327,126									$	354,550
Interest income/earning assets									5.02	%									4.78	%
Interest expense/earning assets									2.56										2.11
Net interest margin									2.46	%									2.67	%

(1)	Tax-equivalent income has been adjusted using the combined marginal federal and state rate of 25.48% and 25.37% for 2024 and 2023, respectively. The annualized taxable-equivalent adjustments utilized in the above table to compute yields aggregated to $4.5 million and $4.2 million in 2024 and 2023, respectively.
(2)	Non-accrual loans are included in the average balances.
(3)	Available-for-sale investments are presented at amortized cost.