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     111  0 Kommentare Sandy Spring Bancorp Reports Record Quarterly Earnings of $44.6 Million

    Year-Over-Year Operating Earnings Increase 49%

    OLNEY, Md., Oct. 22, 2020 (GLOBE NEWSWIRE) -- Sandy Spring Bancorp, Inc., (Nasdaq-SASR), the parent company of Sandy Spring Bank, today reported record net income of $44.6 million ($0.94 per diluted common share) for the third quarter of 2020. The current quarter’s result compares to net income of $29.4 million ($0.82 per diluted common share) for the third quarter of 2019 and a loss of $14.3 million ($0.31 per diluted common share) for the second quarter of 2020.

    Operating earnings for the current quarter, which excludes the impact of merger and acquisition expense, the provision for credit losses and the effects from the Paycheck Protection Program (“PPP” or “PPP program”), each on an after-tax basis, were $45.9 million ($0.97 per diluted common share), compared to $30.8 million ($0.86 per diluted common share) for the quarter ended September 30, 2019 and $42.0 million ($0.88 per diluted common share) for the quarter ended June 30, 2020.

    The current quarter’s results included $1.3 million for merger and acquisition expense related to the second quarter acquisition of Revere Bank (“Revere”) as compared to $22.5 million for the linked quarter.   The provision for credit losses for the current quarter was $7.0 million as compared to $58.7 million for the second quarter of 2020. The decrease in the provision for credit losses compared to the prior quarter is a result of the stability of the economic forecast compared to the prior quarter and resiliency of the loan portfolio’s credit quality.

    “The record net income and earnings per share that we delivered clearly reflect the value of our Revere Bank acquisition, though we have yet to realize the full potential of the transaction,” said Daniel J. Schrider, President and Chief Executive Officer. “Our team seamlessly completed the systems integration of Revere Bank in the third quarter, notwithstanding the challenging work environment necessitated by the COVID-19 pandemic. As a result, the former Revere clients now have access to all Sandy Spring Bank services and locations. We remain focused on strengthening our client relationships and working closely with borrowers to see them through these extraordinary times.”

    Third Quarter Highlights:

    • Total assets at September 30, 2020, grew 50% to $12.7 billion compared to September 30, 2019 primarily as a result of the Revere acquisition and participation in the PPP. Loans and deposits grew by 57% and 53%, respectively.   On the date of acquisition, Revere’s loans and deposits were $2.5 billion and $2.3 billion, respectively. The Company originated $1.1 billion in commercial business loans through the PPP.

    • The net interest margin was 3.24% for the third quarter of 2020, compared to 3.51% for the same quarter of 2019, and 3.47% for the second quarter of 2020. Excluding the impact of the amortization of the fair value marks derived from acquisitions, the current quarter’s net interest margin would have been 3.18%, compared to 3.47% for third quarter of 2019, and 3.19% for the second quarter of 2020.

    • The provision for credit losses was $7.0 million for the current quarter. The lower provision for the current quarter as compared to the prior quarter’s provision of $58.7 million was the result of the stabilization in economic projections compared to the prior quarter and resiliency of the loan portfolio’s credit quality.

    • Non-interest income increased from the prior year quarter by 58% to $29.4 million, as a result of a 220% increase in income from mortgage banking activities and growth of 42% in wealth management income as a result of the acquisition of Rembert Pendleton Jackson (“RPJ”) in the first quarter of the year.

    • Non-interest expense for the third quarter of 2020 increased $16.0 million or 36% compared to the prior year quarter. This increase was driven by the impact of the acquisition of Revere and RPJ, which increased compensation costs, facilities and operational costs and merger and acquisition expenses.

    • Return on average assets (“ROA”) for the quarter ended September 30, 2020 was 1.38% and return on average on tangible common equity (“ROTCE”) was 18.16%. This compares to 1.39% and 15.13% for ROA and ROTCE, respectively, for the prior year. The non-GAAP efficiency ratio for the third quarter of 2020 was 45.27% compared to 50.95% for the third quarter of 2019.

    Response to COVID-19

    The Company continues to focus on protecting the health and well-being of its employees and clients and assisting clients who have been impacted by the COVID-19 pandemic. A substantial majority of non-branch employees continue to work remotely and clients are served at branches primarily through drive-thru facilities and limited lobby access. Area jurisdictions continue to monitor and modify their respective pandemic guidelines on a periodic basis. Currently, the Company is maintaining its first phase of its return to work plan.

    The Company’s participation in the Small Business Administration’s PPP has resulted in the approval of over 5,400 loans for a total of $1.1 billion in loans to businesses to assist them in maintaining their payroll of an estimated 112,000 employees and cover applicable overhead.   The Company is developing a digital PPP forgiveness application that will be submitted to the SBA. The Company anticipates launching the forgiveness application in its PPP client portal in the coming weeks.

    The Company has provided for deferment of certain loan payments up to 90 days to provide relief to our qualified commercial, mortgage and consumer loan customers.   From March through October 12, 2020, the Company granted payment modifications/deferrals on over 2,500 loans with an aggregate balance of $2.0 billion, of which 481 loans with an aggregate balance of $502 million remain in deferral status.

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

    Balance Sheet and Credit Quality

    Total assets grew to $12.7 billion at September 30, 2020, as compared to $8.4 billion at September 30, 2019, primarily as a result of the acquisition of Revere during the second quarter of the current year. In addition, the Company’s participation in the PPP program had a further positive impact on the year-over-year asset growth. During this period, total loans grew by 57% to $10.3 billion at September 30, 2020, compared to $6.6 billion at September 30, 2019. Excluding PPP loans, total loans grew 41% to $9.3 billion at September 30, 2020 as compared to the prior year quarter. Commercial loans, excluding PPP loans, grew 55% or $2.6 billion while the remainder of the loan portfolio grew 2%. The majority of the commercial loan growth was driven by the acquisition of Revere. Consumer loans grew 9% due to the Revere acquisition. Deposit growth was 53% from September 30, 2019 through September 30, 2020, as noninterest-bearing deposits experienced growth of 66% and interest-bearing deposits grew 47%. This growth was driven primarily by the Revere acquisition.   During the current quarter, excess liquidity was used to reduce borrowings under the Paycheck Protection Program Liquidity Facility (“PPPLF”) program by approximately $580 million.

    At September 30, 2020, tangible common equity increased to $1.0 billion or 8.17% of tangible assets compared to $787.3 million or 9.74% at September 30, 2019, as a result of the equity issuance in the Revere acquisition. The year-over-year change in tangible common equity also reflects the effects of the repurchase of $50 million of common stock and the increase in intangible assets and goodwill associated with the two acquisitions during the past twelve months. At September 30, 2020, the Company had a total risk-based capital ratio of 14.02%, a common equity tier 1 risk-based capital ratio of 10.45%, a tier 1 risk-based capital ratio of 10.45% and a tier 1 leverage ratio of 8.65%.

    The level of non-performing loans to total loans increased to 0.72% at September 30, 2020, compared to 0.61% at September 30, 2019, and decreased from 0.77% at June 30, 2020. At September 30, 2020, non-performing loans totaled $74.7 million, compared to $40.1 million at September 30, 2019, and $79.9 million at June 30, 2020. Non-performing loans include accruing loans 90 days or more past due and restructured loans. The year-over-year growth in non-performing loans was driven by three major components: loans placed in non-accrual status, acquired Revere non-accrual loans, and loans previously accounted for as purchased credit impaired loans that have been designated as non-accrual loans as a result of the Company’s adoption of the accounting standard for expected credit losses at the beginning of the year. Loans placed on non-accrual during the current quarter amounted to $0.9 million compared to $6.0 million for the prior year quarter and $27.3 million for the second quarter of 2020, which included $11.3 million in Revere non-accrual loans as of the acquisition date.

    The Company recorded net charge-offs of $0.2 million for the third quarter of 2020, as compared to net charge-offs of $0.6 million and net recoveries of $0.4 million for the third quarter of 2019 and the second quarter of 2020, respectively.

    At September 30, 2020, the allowance for credit losses was $170.3 million or 1.65% of outstanding loans and 228% of non-performing loans, compared to $163.5 million or 1.58% of outstanding loans and 205% of non-performing loans at June 30, 2020. The modest increase in the allowance from the linked quarter resulted from the combination of the impact of the updated projected future economic metrics and qualitative assessment of the loan portfolio.

    Income Statement Review

    Quarterly Results

    Net interest income for the third quarter of 2020 increased 46% compared to the third quarter of 2019, driven primarily by the acquisition of Revere. The PPP program and its associated funding contributed a net of $6.6 million to net interest income for the quarter. The net interest margin declined to 3.24% for the third quarter of 2020, compared to 3.51% for the third quarter of 2019. Excluding the net $1.9 million impact of the amortization of the fair value marks derived from acquisitions, the net interest margin would have been 3.18%.

    The provision for credit losses was $7.0 million for the third quarter of 2020, compared to $1.5 million for the third quarter of 2019 and $58.7 million for the second quarter of 2020. The decrease in the current quarter’s provision for credit losses, compared to the prior quarter, is a result of the stability of economic forecast compared to the prior quarter and resiliency of the loan portfolio’s credit quality. The provision for credit losses during the second quarter was primarily the result of deterioration in forecasted economic conditions ($33.8 million) and the initial allowance required on Revere non-purchased credit deteriorated loans ($17.5 million).

    Non-interest income increased $10.8 million or 58% during the current quarter compared the same quarter of the prior year. During this period, income from mortgage banking activities increased $9.7 million as a result of a high level of refinancing activity and wealth management income increased $2.3 million as a result of the first quarter acquisition of RPJ. This growth more than compensated for the $1.4 million of the combined declines in service fee and other non-interest income as compared to the prior year quarter.

    Non-interest expense grew 36% or $16.0 million from the prior year quarter. Excluding the impact of merger and acquisition expense, non-interest expense grew 34% year-over-year, primarily as a result of the operational cost of the Revere and RPJ acquisitions, increased compensation expense related to staffing increases, incentive compensation and annual merit increases, in addition to an increase in FDIC insurance and the amortization of intangible assets.

    The non-GAAP efficiency ratio was 45.27% for the current quarter as compared to 50.95% for the third quarter of 2019 and 43.85% for the second quarter of 2020. The decrease in the efficiency ratio (reflecting an increase in efficiency) from the third quarter of last year to the current year was the result of the $41.0 million growth in non-GAAP revenue outpacing the $13.6 million growth in non-GAAP non-interest expense.

    Year to Date Results

    Net interest income for the nine months ended September 30, 2020 increased 32% or $63.6 million compared to the same period of 2019. This increase was driven primarily by the acquisition of Revere in the second quarter of the current year. Additionally, the income generated by the PPP program, net of its associated funding, contributed a net of $12.1 million to the growth in net interest income year-over-year.   The net interest margin declined to 3.33% for the nine months ended September 30, 2020, compared to 3.55% for the same period of the prior year. Excluding the net $10.5 million impact of the amortization of the fair value marks derived from acquisitions, the net interest margin would have been 3.21%. Included in the current period net interest income is a benefit realized from the accelerated amortization of the $5.8 million purchase premium on acquired FHLB advances as a result of the prepayment of those borrowings.

    The provision for credit losses for the nine months ended September 30, 2020 amounted to $90.2 million as compared to $3.0 million for the same period in 2019. The provision for credit losses under the CECL standard reflects the combined results of the impact of the deteriorated economic forecasts during the year ($59.3 million) and the initial allowance on acquired Revere non-purchased credit deteriorated loans ($17.5 million). The change in the portfolio mix and various qualitative adjustments resulted in the remainder of provision growth for the period.

    Non-interest income rose to $70.5 million or 35% above prior year levels. Income from mortgage banking activities increased $15.0 million as a result of the high levels of refinancing activity, and wealth management income increased $6.1 million as a result of the first quarter acquisition of RPJ. These increases more than offset declines in deposit service fees, the reduction in BOLI income, due to the absence of mortality income that occurred in 2019, and lower other non-interest income.  

    Non-interest expense increased 46% or $61.1 million for the first nine months of 2020, compared to the first nine months of 2019. Merger and acquisition expense accounted for $24.8 million of the growth of non-interest expense. The non-interest expense growth also included $5.9 million in prepayment penalties resulting from the liquidation of acquired FHLB borrowings. Excluding the impact of these items results in a year-over-year growth rate of 23%. This growth rate was driven by operational and compensation cost associated with the Revere and RPJ acquisitions, increased incentive expense related to the significant level of mortgage loan originations, intangible amortization and annual employee merit increases.  

    The effective tax rate for the nine months ended September 30, 2020 was 18.7%, compared to 24.0% for the same period in 2019. This decrease was the result of the recent changes to tax laws that expanded the time permitted to utilize previous net operating losses. The Company applied this change to the 2018 acquisition of WashingtonFirst Bankshares, Inc. to realize a tax benefit of $1.8 million for the current year.

    The non-GAAP efficiency ratio for the current year-to-date was 47.10% compared to 51.36% for the prior year period. The improvement in the current year’s efficiency ratio compared to the prior year was the result of the growth in non-GAAP revenue, which outpaced the growth in non-GAAP non-interest expense.

    Explanation of Non-GAAP Financial Measures

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

    • Tangible common equity and related measures are non-GAAP measures that exclude the impact of intangible assets.
    • The non-GAAP efficiency ratio is non-GAAP in that it excludes amortization of intangible assets, loss on FHLB redemption, merger and acquisition expense and securities gains and includes tax-equivalent income.
    • Operating earnings - and the related measures of operating earnings per share, operating return on average assets and operating return on average tangible common equity - reflect net income exclusive of the provision for credit losses, merger and acquisition expense and the income and expense associated with the PPP program, in each case net of tax.

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

    Conference Call

    The Company’s management will host a conference call to discuss its third quarter results today at 2:00 p.m. (ET). A live Webcast of the conference call is available through the Investor Relations section of the Sandy Spring Website at www.sandyspringbank.com. Participants may call 1-866-235-9910. A password is not necessary. Visitors to the Website are advised to log on 10 minutes ahead of the scheduled start of the call. An internet-based replay will be available on the website until 9:00 am (ET) November 5, 2020. A replay of the teleconference will be available through the same time period by calling 1-877-344-7529 under conference call number 10148248.

    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 65 locations, the bank offers a broad range of commercial and retail bankingmortgageprivate banking, and trust services throughout Maryland, Northern Virginia, and Washington, D.C. Through its subsidiaries, Rembert Pendleton JacksonSandy Spring Insurance Corporation and West Financial Services, Inc., Sandy Spring Bank also offers a comprehensive menu of insurance and wealth management services.

    For additional information or questions, please contact:
    Daniel J. Schrider, President & Chief Executive Officer, or
    Philip J. Mantua, E.V.P. & Chief Financial Officer
    Sandy Spring Bancorp
    17801 Georgia Avenue
    Olney, Maryland 20832
    1-800-399-5919
    Email:


    DSchrider@sandyspringbank.com
    PMantua@sandyspringbank.com
    Website: www.sandyspringbank.com
    Media Contact:
    Jen Schell
    301-570-8331
    jschell@sandyspringbank.com
     

    Forward-Looking Statements

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



    Sandy Spring Bancorp, Inc. and Subsidiaries                        
    FINANCIAL HIGHLIGHTS - UNAUDITED                        
                             
        Three Months Ended       Nine Months Ended    
        September 30,   %   September 30,   %
    (Dollars in thousands, except per share data)   2020   2019   Change   2020   2019   Change
    Results of Operations:                        
    Net interest income   $ 97,484   $ 66,790   46 %   $ 263,332   $ 199,725   32 %
    Provision for credit losses     7,003     1,524   n.m       90,158     3,029   n.m  
    Non-interest income     29,390     18,573   58       70,482     52,098   35  
    Non-interest expense     60,937     44,925   36       194,121     133,004   46  
    Income before income taxes     58,934     38,914   51       49,535     115,790   (57 )
    Net income     44,642     29,383   52       40,291     87,976   (54 )
                             
    Net income attributable to common shareholders   $ 44,268   $ 29,196   52     $ 39,974   $ 87,407   (54 )
    Pre-tax pre-provision pre-merger income (1)   $ 67,200   $ 40,802   65     $ 164,864   $ 119,183   38  
                             
    Return on average assets     1.38 %   1.39 %       0.47 %   1.42 %  
    Return on average common equity     12.67 %   10.38 %       4.12 %   10.71 %  
    Return on average tangible common equity     18.16 %   15.13 %       5.93 %   15.66 %  
    Net interest margin     3.24 %   3.51 %       3.33 %   3.55 %  
    Efficiency ratio - GAAP basis (2)     48.03 %   52.63 %       58.15 %   52.82 %  
    Efficiency ratio - Non-GAAP basis (2)     45.27 %   50.95 %       47.10 %   51.36 %  
                             
    Per share data:                        
    Basic net income per common share   $ 0.94   $ 0.82   15 %   $ 0.93   $ 2.46   (62 )%
    Diluted net income per common share   $ 0.94   $ 0.82   15     $ 0.93   $ 2.45   (62 )
    Weighted average diluted common shares     47,175,071     35,671,721   32       43,070,672     35,642,556   21  
    Dividends declared per share   $ 0.30   $ 0.30   -     $ 0.90   $ 0.88   2  
    Book value per common share     30.30     32.00   (5 )     30.30     32.00   (5 )
    Tangible book value per common share (1)     21.32     22.10   (4 )     21.32     22.10   (4 )
    Outstanding common shares     47,025,779     35,625,822   32       47,025,779     35,625,822   32  
                             
    Financial Condition at period-end:                        
    Investment securities   $ 1,425,733   $ 946,210   51 %   $ 1,425,733   $ 946,210   51 %
    Loans     10,333,935     6,596,548   57       10,333,935     6,596,548   57  
    Interest-earning assets     11,965,915     7,742,138   55       11,965,915     7,742,138   55  
    Assets     12,678,131     8,437,538   50       12,678,131     8,437,538   50  
    Deposits     9,964,969     6,493,899   53       9,964,969     6,493,899   53  
    Interest-bearing liabilities     7,643,381     5,093,265   50       7,643,381     5,093,265   50  
    Stockholders' equity     1,424,749     1,140,041   25       1,424,749     1,140,041   25  
                             
    Capital ratios:                        
    Tier 1 leverage (3)     8.65 %   9.96 %       8.65 %   9.96 %  
    Common equity tier 1 capital to risk-weighted assets (3)     10.45 %   11.37 %       10.45 %   11.37 %  
    Tier 1 capital to risk-weighted assets (3)     10.45 %   11.52 %       10.45 %   11.52 %  
    Total regulatory capital to risk-weighted assets (3)     14.02 %   12.70 %       14.02 %   12.70 %  
    Tangible common equity to tangible assets (4)     8.17 %   9.74 %       8.17 %   9.74 %  
    Average equity to average assets     10.92 %   13.42 %       11.39 %   13.22 %  
                             
    Credit quality ratios:                        
    Allowance for credit losses to loans     1.65 %   0.83 %       1.65 %   0.83 %  
    Non-performing loans to total loans     0.72 %   0.61 %       0.72 %   0.61 %  
    Non-performing assets to total assets     0.60 %   0.49 %       0.60 %   0.49 %  
    Allowance for credit losses to non-performing loans     228.03 %   137.05 %       228.03 %   137.05 %  
    Annualized net charge-offs to average loans (5)     0.01 %   0.03 %       0.01 %   0.03 %  
                             
    (1) Represents a Non-GAAP measure.                        
    (2) The efficiency ratio - GAAP basis is non-interest expense divided by net interest income plus non-interest income from the Condensed Consolidated Statements of Income. The traditional efficiency ratio - Non-GAAP basis excludes intangible asset amortization, loss on FHLB redemption, and merger and acquisition expense from non-interest expense; securities gains from non-interest income and adds the tax-equivalent adjustment to net interest income. See the Reconciliation Table included with these Financial Highlights.
    (3) Estimated ratio at September 30, 2020            
    (4) The tangible common equity to tangible assets ratio is a non-GAAP ratio that divides assets excluding intangible assets into stockholders' equity after deducting intangible assets and other comprehensive gains (losses). See the Reconciliation Table included with these Financial Highlights.
    (5) Calculation utilizes average loans, excluding residential mortgage loans held-for-sale.          
                             


    Sandy Spring Bancorp, Inc. and Subsidiaries                
    RECONCILIATION TABLE - UNAUDITED                
                     
        Three Months Ended   Nine Months Ended
        September 30,   September 30,
    (Dollars in thousands)     2020       2019       2020       2019  
    Pre-tax pre-provision pre-merger income:                
    Net income   $ 44,642     $ 29,383     $ 40,291     $ 87,976  
    Plus non-GAAP adjustments:                
    Merger and acquisition expense     1,263       364       25,171       364  
    Income taxes     14,292       9,531       9,244       27,814  
    Provision for credit losses     7,003       1,524       90,158       3,029  
    Pre-tax pre-provision pre-merger income   $ 67,200     $ 40,802     $ 164,864     $ 119,183  
                     
    Efficiency ratio - GAAP basis:                
    Non-interest expense   $ 60,937     $ 44,925     $ 194,121     $ 133,004  
                     
    Net interest income plus non-interest income   $ 126,874     $ 85,363     $ 333,814     $ 251,823  
                     
    Efficiency ratio - GAAP basis     48.03 %     52.63 %     58.15 %     52.82 %
                     
    Efficiency ratio - Non-GAAP basis:                
    Non-interest expense   $ 60,937     $ 44,925     $ 194,121     $ 133,004  
    Less non-GAAP adjustments:                
    Amortization of intangible assets     1,968       491       4,566       1,465  
    Loss on FHLB Redemption     -       -       5,928       -  
    Merger and acquisition expense     1,263       364       25,171       364  
    Non-interest expense - as adjusted   $ 57,706     $ 44,070     $ 158,456     $ 131,175  
                     
    Net interest income plus non-interest income   $ 126,874     $ 85,363     $ 333,814     $ 251,823  
    Plus non-GAAP adjustment:                
    Tax-equivalent income     643       1,147       3,076       3,597  
    Less non-GAAP adjustment:                
    Securities gains     51       15       432       20  
    Net interest income plus non-interest income - as adjusted   $ 127,466     $ 86,495     $ 336,458     $ 255,400  
                     
    Efficiency ratio - Non-GAAP basis     45.27 %     50.95 %     47.10 %     51.36 %
                     
    Tangible common equity ratio:                
    Total stockholders' equity   $ 1,424,749     $ 1,140,041     $ 1,424,749     $ 1,140,041  
    Accumulated other comprehensive (income)/ loss     (17,493 )     2,708       (17,493 )     2,708  
    Goodwill     (370,549 )     (347,149 )     (370,549 )     (347,149 )
    Other intangible assets, net     (34,175 )     (8,322 )     (34,175 )     (8,322 )
    Tangible common equity   $ 1,002,532     $ 787,278     $ 1,002,532     $ 787,278  
                     
    Total assets   $ 12,678,131     $ 8,437,538     $ 12,678,131     $ 8,437,538  
    Goodwill     (370,549 )     (347,149 )     (370,549 )     (347,149 )
    Other intangible assets, net     (34,175 )     (8,322 )     (34,175 )     (8,322 )
    Tangible assets   $ 12,273,407     $ 8,082,067     $ 12,273,407     $ 8,082,067  
                     
    Tangible common equity ratio     8.17 %     9.74 %     8.17 %     9.74 %
                     
    Outstanding common shares     47,025,779       35,625,822       47,025,779       35,625,822  
    Tangible book value per common share   $ 21.32     $ 22.10     $ 21.32     $ 22.10  
                     


    Sandy Spring Bancorp, Inc. and Subsidiaries                
    RECONCILIATION TABLE - UNAUDITED (CONTINUED)                
    OPERATING EARNINGS - METRICS                
        Three Months Ended   Nine Months Ended
      September 30,   September 30,
    (Dollars in thousands)     2020       2019       2020       2019  
    Operating earnings (non-GAAP):                
    Net income   $ 44,642     $ 29,383     $ 40,291     $ 87,976  
    Plus non-GAAP adjustments:                
    Provision for credit losses - net of tax     5,140       1,133       67,132       2,255  
    Merger and acquisition expense - net of tax     919       271       18,742       271  
    PPPLF funding expense - net of tax     339       -       707       -  
    Less non-GAAP adjustment:                
    PPP interest income and net deferred fee - net of tax     5,226       -       9,709       -  
    Operating earnings (non-GAAP)   $ 45,814     $ 30,787     $ 117,163     $ 90,503  
                     
    Operating earnings per common share (non-GAAP):                
    Weighted average common shares outstanding - diluted (GAAP)     47,175,071       35,671,721       43,070,672       35,642,556  
                     
    Earnings per diluted common share (GAAP)   $ 0.94     $ 0.82     $ 0.93     $ 2.45  
    Operating earnings per diluted common share (non-GAAP)   $ 0.97     $ 0.86     $ 2.72     $ 2.54  
                     
    Operating return on average assets (non-GAAP):                
    Average assets (GAAP)   $ 12,835,893     $ 8,370,789     $ 11,483,477     $ 8,307,929  
    Average PPP loans     1,058,792       -       592,500       -  
    Adjusted average assets (non-GAAP)   $ 11,777,101     $ 8,370,789     $ 10,890,977     $ 8,307,929  
                     
    Return on average assets (GAAP)     1.38 %     1.39 %     0.47 %     1.42 %
    Operating return on adjusted average assets (non-GAAP)     1.55 %     1.46 %     1.44 %     1.46 %
                     
    Operating return on average tangible common equity (non-GAAP)              
    Average total stockholders' equity (GAAP)   $ 1,401,746     $ 1,123,185     $ 1,307,791     $ 1,098,700  
    Average accumulated other comprehensive income/ (loss)     17,726       (2,837 )     9,623       (8,438 )
    Average goodwill     370,548       347,149       363,906       347,149  
    Average other intangible assets, net     35,470       8,629       26,572       9,118  
    Average tangible common equity (non-GAAP)   $ 978,002     $ 770,244     $ 907,690     $ 750,871  
                     
    Return on average tangible common equity (GAAP)     18.16 %     15.13 %     5.93 %     15.66 %
    Operating return on average tangible common equity (non-GAAP)     18.64 %     15.86 %     17.24 %     16.11 %
                     


    Sandy Spring Bancorp, Inc. and Subsidiaries            
    CONDENSED CONSOLIDATED STATEMENTS OF CONDITION - UNAUDITED            
                 
        September 30, December 31,   September 30,
    (Dollars in thousands)     2020       2019       2019  
    Assets            
    Cash and due from banks   $ 107,364     $ 82,469     $ 89,377  
    Federal funds sold     390       208       253  
    Interest-bearing deposits with banks     117,129       63,426       120,306  
    Cash and cash equivalents     224,883       146,103       209,936  
    Residential mortgage loans held for sale (at fair value)     88,728       53,701       78,821  
    Investments available-for-sale (at fair value)     1,357,205       1,073,333       894,272  
    Other equity securities     68,528       51,803       51,938  
    Total loans     10,333,935       6,705,232       6,596,548  
    Less: allowance for credit losses     (170,314 )     (56,132 )     (54,992 )
    Net loans     10,163,621       6,649,100       6,541,556  
    Premises and equipment, net     58,738       58,615       59,487  
    Other real estate owned     1,389       1,482       1,482  
    Accrued interest receivable     48,176       23,282       23,438  
    Goodwill     370,549       347,149       347,149  
    Other intangible assets, net     34,175       7,841       8,322  
    Other assets     262,139       216,593       221,137  
    Total assets   $ 12,678,131     $ 8,629,002     $ 8,437,538  
                 
    Liabilities            
    Noninterest-bearing deposits   $ 3,458,804     $ 1,892,052     $ 2,081,435  
    Interest-bearing deposits     6,506,165       4,548,267       4,412,464  
    Total deposits     9,964,969       6,440,319       6,493,899  
    Securities sold under retail repurchase agreements and federal funds purchased     462,706       213,605       126,008  
    Advances from FHLB     444,210       513,777       517,477  
    Subordinated debentures     230,300       209,406       37,316  
    Total borrowings     1,137,216       936,788       680,801  
    Accrued interest payable and other liabilities     151,197       118,921       122,797  
    Total liabilities     11,253,382       7,496,028       7,297,497  
                 
    Stockholders' Equity            
    Common stock -- par value $1.00; shares authorized 100,000,000; shares issued and outstanding 47,025,779, 34,970,370 and 35,625,822 at September 30, 2020, December 31, 2019 and September 30, 2019, respectively     47,026       34,970       35,626  
    Additional paid in capital     845,399       586,622       609,103  
    Retained earnings     514,831       515,714       498,020  
    Accumulated other comprehensive income/ (loss)     17,493       (4,332 )     (2,708 )
    Total stockholders' equity     1,424,749       1,132,974       1,140,041  
    Total liabilities and stockholders' equity   $ 12,678,131     $ 8,629,002     $ 8,437,538  
                 


    Sandy Spring Bancorp, Inc. and Subsidiaries                
    CONDENSED CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED            
                     
        Three Months Ended   Nine Months Ended
      September 30, September 30,
    (Dollars in thousands, except per share data)   2020   2019     2020   2019
    Interest Income:                
    Interest and fees on loans   $ 106,560   $ 79,167     $ 288,721   $ 239,028
    Interest on loans held for sale     398     572       1,094     1,145
    Interest on deposits with banks     84     783       419     1,405
    Interest and dividends on investment securities:                
    Taxable for federal income taxes     4,488     5,221       17,270     16,302
    Exempt from federal income taxes     1,454     1,337       4,264     4,591
    Interest on federal funds sold     -     2       1     8
    Total interest income     112,984     87,082       311,769     262,479
    Interest Expense:                
    Interest on deposits     9,439     16,332       35,241     46,958
    Interest on retail repurchase agreements and federal funds purchased     551     257       1,731     945
    Interest on advances from FHLB     2,841     3,222       3,863     13,389
    Interest on subordinated debt     2,669     481       7,602     1,462
    Total interest expense     15,500     20,292       48,437     62,754
    Net interest income     97,484     66,790       263,332     199,725
    Provision for credit losses     7,003     1,524       90,158     3,029
    Net interest income after provision for credit losses     90,481     65,266       173,174     196,696
    Non-interest Income:                
    Investment securities gains     51     15       432     20
    Service charges on deposit accounts     1,673     2,516       5,149     7,265
    Mortgage banking activities     14,108     4,408       25,567     10,541
    Wealth management income     7,785     5,493       22,355     16,268
    Insurance agency commissions     2,122     2,116       5,439     5,281
    Income from bank owned life insurance     708     662       2,162     2,505
    Bank card fees     1,525     1,462       4,102     4,181
    Other income     1,418     1,901       5,276     6,037
    Total non-interest income     29,390     18,573       70,482     52,098
    Non-interest Expense:                
    Salaries and employee benefits     36,041     26,234       98,391     77,699
    Occupancy expense of premises     5,575     4,816       16,147     14,807
    Equipment expenses     3,133     2,641       9,103     7,929
    Marketing     1,305     1,541       3,223     3,371
    Outside data services     2,614     1,973       6,365     5,713
    FDIC insurance     1,340     (83 )     3,200     2,137
    Amortization of intangible assets     1,968     491       4,566     1,465
    Merger and acquisition expense     1,263     364       25,171     364
    Professional fees and services     1,800     1,546       5,466     4,425
    Other expenses     5,898     5,402       22,489     15,094
    Total non-interest expense     60,937     44,925       194,121     133,004
    Income before income taxes     58,934     38,914       49,535     115,790
    Income tax expense     14,292     9,531       9,244     27,814
    Net income   $ 44,642   $ 29,383     $ 40,291   $ 87,976
                     
    Net Income Per Share Amounts:                
    Basic net income per common share   $ 0.94   $ 0.82     $ 0.93   $ 2.46
    Diluted net income per common share   $ 0.94   $ 0.82     $ 0.93   $ 2.45
    Dividends declared per share   $ 0.30   $ 0.30     $ 0.90   $ 0.88
                     


    Sandy Spring Bancorp, Inc. and Subsidiaries                              
    HISTORICAL TRENDS - QUARTERLY FINANCIAL DATA - UNAUDITED                      
                                   
        2020     2019
    (Dollars in thousands, except per share data)   Q3   Q2   Q1     Q4   Q3   Q2   Q1
    Profitability for the Quarter:                              
    Tax-equivalent interest income   $ 113,627     $ 116,252     $ 84,966       $ 86,539     $ 88,229     $ 88,423     $ 89,424  
    Interest expense     15,500       13,413       19,524         19,807       20,292       21,029       21,433  
    Tax-equivalent net interest income     98,127       102,839       65,442         66,732       67,937       67,394       67,991  
    Tax-equivalent adjustment     643       1,325       1,108         1,149       1,147       1,209       1,241  
    Provision/ (credit) for credit losses     7,003       58,686       24,469         1,655       1,524       1,633       (128 )
    Non-interest income     29,390       22,924       18,168         19,224       18,573       16,556       16,969  
    Non-interest expense     60,937       85,438       47,746         46,081       44,925       43,887       44,192  
    Income/ (loss) before income taxes     58,934       (19,686 )     10,287         37,071       38,914       37,221       39,655  
    Income tax expense/ (benefit)     14,292       (5,348 )     300         8,614       9,531       8,945       9,338  
    Net income/ (loss)   $ 44,642     $ (14,338 )   $ 9,987       $ 28,457     $ 29,383     $ 28,276     $ 30,317  
    Financial Performance:                              
    Pre-tax pre-provision pre-merger income   $ 67,200     $ 61,454     $ 36,210       $ 39,674     $ 40,802     $ 38,854     $ 39,527  
    Return on average assets     1.38 %     (0.45 )%     0.46 %       1.32 %     1.39 %     1.37 %     1.49 %
    Return on average common equity     12.67 %     (4.15 )%     3.55 %       9.93 %     10.38 %     10.32 %     11.46 %
    Return on average tangible common equity     18.16 %     (5.80 )%     5.36 %       14.39 %     15.13 %     15.10 %     16.82 %
    Net interest margin     3.24 %     3.47 %     3.29 %       3.38 %     3.51 %     3.54 %     3.60 %
    Efficiency ratio - GAAP basis (1)     48.03 %     68.66 %     57.87 %       54.34 %     52.63 %     53.04 %     52.79 %
    Efficiency ratio - Non-GAAP basis (1)     45.27 %     43.85 %     54.76 %       51.98 %     50.95 %     51.71 %     51.44 %
    Per Share Data:                              
    Net income/ (loss) attributable to common shareholders   $ 44,268     $ (14,458 )   $ 9,919       $ 28,274     $ 29,196     $ 28,065     $ 30,120  
    Basic net income/ (loss) per common share   $ 0.94     $ (0.31 )   $ 0.29       $ 0.80     $ 0.82     $ 0.79     $ 0.85  
    Diluted net income/ (loss) per common share   $ 0.94     $ (0.31 )   $ 0.28       $ 0.80     $ 0.82     $ 0.79     $ 0.85  
    Weighted average diluted common shares     47,175,071       46,988,351       34,743,623         35,543,254       35,671,721       35,634,924       35,618,346  
    Dividends declared per share   $ 0.30     $ 0.30     $ 0.30       $ 0.30     $ 0.30     $ 0.30     $ 0.28  
    Non-interest Income:                              
    Securities gains   $ 51     $ 212     $ 169       $ 57     $ 15     $ 5     $ -  
    Service charges on deposit accounts     1,673       1,223       2,253         2,427       2,516       2,442       2,307  
    Mortgage banking activities     14,108       8,426       3,033         4,170       4,408       3,270       2,863  
    Wealth management income     7,785       7,604       6,966         6,401       5,493       5,539       5,236  
    Insurance agency commissions     2,122       1,188       2,129         1,331       2,116       1,265       1,900  
    Income from bank owned life insurance     708       809       645         660       662       654       1,189  
    Bank card fees     1,525       1,257       1,320         1,435       1,462       1,467       1,252  
    Other income     1,418       2,205       1,653         2,743       1,901       1,914       2,222  
    Total Non-interest Income   $ 29,390     $ 22,924     $ 18,168       $ 19,224     $ 18,573     $ 16,556     $ 16,969  
    Non-interest Expense:                              
    Salaries and employee benefits   $ 36,041     $ 34,297     $ 28,053       $ 26,251     $ 26,234     $ 25,489     $ 25,976  
    Occupancy expense of premises     5,575       5,991       4,581         4,663       4,816       4,760       5,231  
    Equipment expenses     3,133       3,219       2,751         2,791       2,641       2,712       2,576  
    Marketing     1,305       729       1,189         1,085       1,541       887       943  
    Outside data services     2,614       2,169       1,582         1,854       1,973       1,962       1,778  
    FDIC insurance     1,340       1,378       482         123       (83 )     1,084       1,136  
    Amortization of intangible assets     1,968       1,998       600         481       491       483       491  
    Merger and acquisition expense     1,263       22,454       1,454         948       364       -       -  
    Professional fees and services     1,800       1,840       1,826         2,553       1,546       1,634       1,245  
    Other expenses     5,898       11,363       5,228         5,332       5,402       4,876       4,816  
    Total Non-interest Expense   $ 60,937     $ 85,438     $ 47,746       $ 46,081     $ 44,925     $ 43,887     $ 44,192  
                                   
    (1) The efficiency ratio - GAAP basis is non-interest expense divided by net interest income plus non-interest income from the Condensed Consolidated Statements of Income. The traditional efficiency ratio - Non-GAAP basis excludes intangible asset amortization, loss on FHLB redemption, and merger and acquisition expense from non-interest expense; securities gains from non-interest income; and adds the tax-equivalent adjustment to net interest income. See the Reconciliation Table included with these Financial Highlights.
             


    Sandy Spring Bancorp, Inc. and Subsidiaries                            
    HISTORICAL TRENDS - QUARTERLY FINANCIAL DATA - UNAUDITED                    
                                 
        2020   2019
    (Dollars in thousands)   Q3   Q2   Q1   Q4   Q3   Q2   Q1
    Balance Sheets at Quarter End:                            
    Commercial investor real estate loans   $ 3,588,702     $ 3,581,778     $ 2,241,240     $ 2,169,156     $ 2,036,021     $ 1,994,027     $ 1,962,879  
    Commercial owner-occupied real estate loans     1,652,208       1,601,803       1,305,682       1,288,677       1,278,505       1,224,986       1,216,713  
    Commercial AD&C loans     994,800       997,423       643,114       684,010       678,906       658,709       688,939  
    Commercial business loans     2,227,246       2,222,810       813,525       801,019       772,619       772,158       769,660  
    Residential mortgage loans     1,173,857       1,211,745       1,116,512       1,149,327       1,199,275       1,241,081       1,249,968  
    Residential construction loans     175,123       169,050       149,573       146,279       150,692       171,106       176,388  
    Consumer loans     521,999       558,434       453,346       466,764       480,530       489,176       505,443  
    Total loans     10,333,935       10,343,043       6,722,992       6,705,232       6,596,548       6,551,243       6,569,990  
    Allowance for credit losses     (170,314 )     (163,481 )     (85,800 )     (56,132 )     (54,992 )     (54,024 )     (53,089 )
    Loans held for sale     88,728       68,765       67,114       53,701       78,821       50,511       24,998  
    Investment securities     1,425,733       1,424,652       1,250,560       1,125,136       946,210       955,715       987,299  
    Interest-earning assets     11,965,915       12,447,146       8,222,589       7,947,703       7,742,138       7,713,364       7,648,654  
    Total assets     12,678,131       13,290,447       8,929,602       8,629,002       8,437,538       8,398,519       8,327,900  
    Noninterest-bearing demand deposits     3,458,804       3,434,038       1,939,937       1,892,052       2,081,435       2,023,614       1,813,708  
    Total deposits     9,964,969       10,076,834       6,593,874       6,440,319       6,493,899       6,389,749       6,224,523  
    Customer repurchase agreements     142,287       143,579       125,305       138,605       126,008       150,604       122,626  
    Total interest-bearing liabilities     7,643,381       8,313,546       5,732,349       5,485,055       5,093,265       5,136,860       5,297,108  
    Total stockholders' equity     1,424,749       1,390,093       1,116,334       1,132,974       1,140,041       1,119,445       1,095,848  
    Quarterly Average Balance Sheets:                            
    Commercial investor real estate loans   $ 3,582,751     $ 3,448,882     $ 2,202,461     $ 2,092,478     $ 1,982,979     $ 1,960,919     $ 1,964,699  
    Commercial owner-occupied real estate loans     1,628,474       1,681,674       1,285,257       1,274,782       1,258,000       1,215,632       1,207,799  
    Commercial AD&C loans     977,607       969,251       659,494       695,817       651,905       686,282       676,205  
    Commercial business loans     2,207,388       1,899,264       819,133       765,159       786,150       756,594       780,318  
    Residential mortgage loans     1,189,452       1,208,566       1,139,786       1,169,623       1,215,132       1,244,086       1,230,319  
    Residential construction loans     173,280       162,978       145,266       149,690       162,196       174,095       189,720  
    Consumer loans     543,242       575,734       465,314       477,572       486,865       505,235       515,644  
    Total loans     10,302,194       9,946,349       6,716,711       6,625,121       6,543,227       6,542,843       6,564,704  
    Loans held for sale     54,784       53,312       35,030       50,208       61,870       37,121       17,846  
    Investment securities     1,404,238       1,398,586       1,179,084       1,002,692       941,048       964,863       1,010,940  
    Interest-earning assets     12,049,463       11,921,132       7,994,618       7,859,836       7,690,629       7,619,240       7,627,187  
    Total assets     12,835,893       12,903,156       8,699,342       8,542,837       8,370,789       8,294,883       8,258,116  
    Noninterest-bearing demand deposits     3,281,607       3,007,222       1,797,227       1,927,063       1,909,884       1,796,802       1,682,720  
    Total deposits     9,862,639       9,614,176       6,433,694       6,459,551       6,405,762       6,247,409       5,952,942  
    Customer repurchase agreements     142,694       144,050       135,652       126,596       138,736       141,865       129,059  
    Total interest-bearing liabilities     7,969,487       8,326,909       5,612,056       5,326,303       5,202,876       5,269,209       5,403,946  
    Total stockholders' equity     1,401,746       1,390,544       1,130,051       1,136,824       1,123,185       1,099,078       1,073,291  
    Financial Measures:                            
    Average equity to average assets     10.92 %     10.78 %     12.99 %     13.31 %     13.42 %     13.25 %     13.00 %
    Investment securities to earning assets     11.91 %     11.45 %     15.21 %     14.16 %     12.22 %     12.39 %     12.91 %
    Loans to earning assets     86.36 %     83.10 %     81.76 %     84.37 %     85.20 %     84.93 %     85.90 %
    Loans to assets     81.51 %     77.82 %     75.29 %     77.71 %     78.18 %     78.00 %     78.89 %
    Loans to deposits     103.70 %     102.64 %     101.96 %     104.11 %     101.58 %     102.53 %     105.55 %
    Capital Measures:                            
    Tier 1 leverage (1)     8.65 %     8.35 %     8.78 %     9.70 %     9.96 %     9.80 %     9.61 %
    Common equity tier 1 capital to risk-weighted assets (1)     10.45 %     10.23 %     10.23 %     11.06 %     11.37 %     11.43 %     11.19 %
    Tier 1 capital to risk-weighted assets (1)     10.45 %     10.23 %     10.23 %     11.21 %     11.52 %     11.59 %     11.35 %
    Total regulatory capital to risk-weighted assets (1)     14.02 %     13.79 %     14.09 %     14.85 %     12.70 %     12.79 %     12.54 %
    Book value per common share   $ 30.30     $ 29.58     $ 32.68     $ 32.40     $ 32.00     $ 31.43     $ 30.82  
    Outstanding common shares     47,025,779       47,001,022       34,164,672       34,970,370       35,625,822       35,614,953       35,557,110  
    (1) Estimated ratio at September 30, 2020              
                                 


    Sandy Spring Bancorp, Inc. and Subsidiaries                            
    LOAN PORTFOLIO QUALITY DETAIL - UNAUDITED                        
                                 
        2020   2019
    (Dollars in thousands)   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   $ -     $ 775     $ -     $ -     $ 1,201     $ 1,248     $ -  
    Commercial owner-occupied real estate     -       515       -       -       -       -       90  
    Commercial AD&C     -       -       -       -       -       -       -  
    Commercial business     93       -       -       -       17       -       -  
    Residential real estate:                            
    Residential mortgage     320       138       8       -       -       -       221  
    Residential construction     -       -       -       -       -       -       -  
    Consumer     1       -       -       -       -       -       -  
    Total loans 90 days past due     414       1,428       8       -       1,218       1,248       311  
    Non-accrual loans:                            
    Commercial real estate:                            
    Commercial investor real estate     26,784       26,482       17,770       8,437       8,454       6,409       6,071  
    Commercial owner-occupied real estate     6,511       6,729       4,074       4,148       3,810       3,766       5,992  
    Commercial AD&C     1,678       2,957       829       829       829       1,990       3,306  
    Commercial business     17,659       20,246       10,834       8,450       6,393       7,083       8,013  
    Residential real estate:                            
    Residential mortgage     11,296       11,724       12,271       12,661       12,574       10,625       9,704  
    Residential construction     -       -       -       -       -       -       156  
    Consumer     7,493       7,800       5,596       4,107       4,561       4,439       4,081  
    Total non-accrual loans     71,421       75,938       51,374       38,632       36,621       34,312       37,323  
    Total restructured loans - accruing     2,854       2,553       2,575       2,636       2,287       2,133       2,479  
    Total non-performing loans     74,689       79,919       53,957       41,268       40,126       37,693       40,113  
    Other assets and other real estate owned (OREO)     1,389       1,389       1,416       1,482       1,482       1,486       1,410  
    Total non-performing assets   $ 76,078     $ 81,308     $ 55,373     $ 42,750     $ 41,608     $ 39,179     $ 41,523  
                                 
        For the Quarter Ended,
        September 30,
      June 30,   March 31,   December 31,
      September 30,
      June 30,   March 31,
    (Dollars in thousands)     2020       2020       2020       2019       2019       2019       2019  
    Analysis of Non-accrual Loan Activity:                            
    Balance at beginning of period   $ 75,938     $ 51,374     $ 38,632     $ 36,621     $ 34,312     $ 37,323     $ 33,583  
    Purchased credit deteriorated loans designated as non-accrual     -       -       13,084       -       -       -       -  
    Non-accrual balances transferred to OREO     -       -       -       -       -       (195 )     -  
    Non-accrual balances charged-off     (144 )     (162 )     (575 )     (454 )     (705 )     (604 )     (227 )
    Net payments or draws     (4,248 )     (1,881 )     (1,860 )     (2,916 )     (2,903 )     (5,517 )     (1,786 )
    Loans placed on non-accrual     893       27,289       2,369       5,381       6,015       3,396       6,202  
    Non-accrual loans brought current     (1,018 )     (682 )     (276 )     -       (98 )     (91 )     (449 )
    Balance at end of period   $ 71,421     $ 75,938     $ 51,374     $ 38,632     $ 36,621     $ 34,312     $ 37,323  
                                 
    Analysis of Allowance for Credit Losses:                            
    Balance at beginning of period   $ 163,481     $ 85,800     $ 56,132     $ 54,992     $ 54,024     $ 53,089     $ 53,486  
    Transition impact of adopting ASC 326     -       -       2,983       -       -       -       -  
    Initial allowance on purchased credit deteriorated loans     -       -       2,762       -       -       -       -  
    Initial allowance on acquired PCD loans     -       18,628       -       -       -       -       -  
    Provision/ (credit) for credit losses     7,003       58,686       24,469       1,655       1,524       1,633       (128 )
    Less loans charged-off, net of recoveries:                            
    Commercial real estate:                            
    Commercial investor real estate     21       (4 )     -       (3 )     (3 )     (3 )     (7 )
    Commercial owner-occupied real estate     -       -       -       -       -       -       -  
    Commercial AD&C     -       -       -       -       (224 )     (4 )     -  
    Commercial business     88       (463 )     108       15       389       735       7  
    Residential real estate:                            
    Residential mortgage     (6 )     15       333       264       209       (10 )     89  
    Residential construction     (2 )     (1 )     (2 )     (2 )     (2 )     (2 )     (2 )
    Consumer     69       86       107       241       187       (18 )     182  
    Net charge-offs/ (recoveries)     170       (367 )     546       515       556       698       269  
    Balance at end of period   $ 170,314     $ 163,481     $ 85,800     $ 56,132     $ 54,992     $ 54,024     $ 53,089  
                                 
    Asset Quality Ratios:                            
    Non-performing loans to total loans     0.72 %     0.77 %     0.80 %     0.62 %     0.61 %     0.58 %     0.61 %
    Non-performing assets to total assets     0.60 %     0.61 %     0.62 %     0.50 %     0.49 %     0.47 %     0.50 %
    Allowance for credit losses to loans     1.65 %     1.58 %     1.28 %     0.84 %     0.83 %     0.82 %     0.81 %
    Allowance for credit losses to non-performing loans     228.03 %     204.56 %     159.02 %     136.02 %     137.05 %     143.33 %     132.35 %
    Annualized net charge-offs/ (recoveries) to average loans   0.01 %     (0.01 %)     0.03 %     0.03 %     0.03 %     0.04 %     0.02 %
                                 


    Sandy Spring Bancorp, Inc. and Subsidiaries                        
    CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES - UNAUDITED                
                                 
        Three Months Ended September 30,  
        2020     2019  
                  Annualized             Annualized  
        Average   (1)   Average     Average   (1)   Average  
    (Dollars in thousands and tax-equivalent)   Balances   Interest   Yield/Rate     Balances   Interest   Yield/Rate  
    Assets                            
    Commercial investor real estate loans   $ 3,582,751     $ 39,547     4.39 %   $ 1,982,979     $ 24,342     4.87 %
    Commercial owner-occupied real estate loans     1,628,474       19,215     4.69       1,258,000       15,749     4.97  
    Commercial AD&C loans     977,607       10,647     4.33       651,905       9,705     5.91  
    Commercial business loans     2,207,388       20,015     3.61       786,150       10,350     5.22  
    Total commercial loans     8,396,220       89,424     4.24       4,679,034       60,146     5.10  
    Residential mortgage loans     1,189,452       10,899     3.67       1,215,132       11,649     3.83  
    Residential construction loans     173,280       1,733     3.98       162,196       1,746     4.27  
    Consumer loans     543,242       5,053     3.70       486,865       6,132     5.00  
    Total residential and consumer loans     1,905,974       17,685     3.70       1,864,193       19,527     4.18  
    Total loans (2)     10,302,194       107,109     4.14       6,543,227       79,673     4.84  
    Loans held for sale     54,784       398     2.91       61,870       572     3.70  
    Taxable securities     1,148,573       4,190     1.46       744,461       5,504     2.95  
    Tax-exempt securities (3)     255,665       1,846     2.89       196,587       1,695     3.45  
    Total investment securities (4)     1,404,238       6,036     1.72       941,048       7,199     3.06  
    Interest-bearing deposits with banks     287,817       84     0.12       143,865       783     2.16  
    Federal funds sold     430       -     0.10       619       2     1.42  
    Total interest-earning assets     12,049,463       113,627     3.75       7,690,629       88,229     4.56  
                                 
    Less: allowance for credit losses     (162,488 )               (54,147 )          
    Cash and due from banks     128,193                 64,154            
    Premises and equipment, net     59,182                 60,537            
    Other assets     761,543                 609,616            
     Total assets   $ 12,835,893               $ 8,370,789            
                                 
    Liabilities and Stockholders' Equity                            
    Interest-bearing demand deposits   $ 1,144,328       365     0.13 %   $ 749,720       545     0.29 %
    Regular savings deposits     391,291       66     0.07       326,913       110     0.13  
    Money market savings deposits     3,022,710       2,508     0.33       1,781,173       6,721     1.50  
    Time deposits     2,022,703       6,500     1.28       1,638,072       8,956     2.17  
    Total interest-bearing deposits     6,581,032       9,439     0.57       4,495,878       16,332     1.44  
    Other borrowings     709,217       551     0.31       146,939       257     0.69  
    Advances from FHLB     448,929       2,841     2.52       522,719       3,222     2.45  
    Subordinated debentures     230,309       2,669     4.64       37,340       481     5.15  
    Total borrowings     1,388,455       6,061     1.74       706,998       3,960     2.22  
    Total interest-bearing liabilities     7,969,487       15,500     0.77       5,202,876       20,292     1.55  
                                 
    Noninterest-bearing demand deposits     3,281,607                 1,909,884            
    Other liabilities     183,053                 134,844            
    Stockholders' equity     1,401,746                 1,123,185            
    Total liabilities and stockholders' equity   $ 12,835,893               $ 8,370,789            
                                 
    Net interest income and spread       $ 98,127     2.98 %       $ 67,937     3.01 %
    Less: tax-equivalent adjustment         643                 1,147        
    Net interest income       $ 97,484               $ 66,790        
                                 
    Interest income/earning assets           3.75 %           4.56 %
    Interest expense/earning assets           0.51             1.05  
    Net interest margin           3.24 %           3.51 %
                                 
    (1) Tax-equivalent income has been adjusted using the combined marginal federal and state rate of 25.54% and 26.13% for 2020 and 2019, respectively. The annualized taxable-equivalent adjustments utilized in the above table to compute yields aggregated to $0.6 million and $1.1 million in 2020 and 2019, respectively.
    (2) Non-accrual loans are included in the average balances.              
    (3) Includes only investments that are exempt from federal taxes.            
    (4) Available-for-sale investments are presented at amortized cost.            
                   


    Sandy Spring Bancorp, Inc. and Subsidiaries                        
    CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES - UNAUDITED              
                                 
        Nine Months Ended September 30,  
        2020     2019  
                  Annualized             Annualized  
        Average   (1)   Average     Average   (1)   Average  
    (Dollars in thousands and tax-equivalent)   Balances   Interest   Yield/Rate     Balances   Interest   Yield/Rate  
    Assets                            
    Commercial investor real estate loans   $ 3,079,873     $ 103,238     4.48 % $ 1,969,599     $ 74,428     5.05 %
    Commercial owner-occupied real estate loans     1,532,154       54,215     4.73       1,227,327       44,975     4.90  
    Commercial AD&C loans     869,181       29,862     4.59       671,375       29,853     5.95  
    Commercial business loans     1,643,992       49,618     4.03       774,375       31,479     5.43  
    Total commercial loans     7,125,200       236,933     4.44       4,642,676       180,735     5.20  
    Residential mortgage loans     1,179,305       32,899     3.72       1,229,790       35,408     3.84  
    Residential construction loans     160,555       4,985     4.15       175,236       5,582     4.26  
    Consumer loans     528,152       15,550     3.93       502,476       18,797     5.00  
    Total residential and consumer loans     1,868,012       53,434     3.82       1,907,502       59,787     4.18  
    Total loans (2)     8,993,212       290,367     4.31       6,550,178       240,522     4.91  
    Loans held for sale     47,734       1,094     3.05       39,107       1,145     3.91  
    Taxable securities     1,095,419       17,557     2.14       752,518       17,169     3.04  
    Tax-exempt securities (3)     232,165       5,407     3.11       219,510       5,827     3.54  
    Total investment securities (4)     1,327,584       22,964     2.31       972,028       22,996     3.15  
    Interest-bearing deposits with banks     291,260       419     0.19       83,981       1,405     2.24  
    Federal funds sold     369       1     0.36       623       8     1.78  
    Total interest-earning assets     10,660,159       314,845     3.94       7,645,917       266,076     4.65  
                                 
    Less: allowance for credit losses     (114,613 )               (53,440 )          
    Cash and due from banks     126,607                 64,227            
    Premises and equipment, net     59,357                 61,039            
    Other assets     751,967                 590,186            
    Total assets   $ 11,483,477               $ 8,307,929            
                                 
    Liabilities and Stockholders' Equity                            
    Interest-bearing demand deposits   $ 1,017,873       1,519     0.20 % $ 733,872       1,305     0.24 %
    Regular savings deposits     363,303       212     0.08       330,377       321     0.13  
    Money market savings deposits     2,588,870       10,554     0.54       1,710,520       19,617     1.53  
    Time deposits     1,973,773       22,956     1.55       1,629,716       25,715     2.11  
    Total interest-bearing deposits     5,943,819       35,241     0.79       4,404,485       46,958     1.43  
    Other borrowings     553,898       1,731     0.42       158,279       945     0.80  
    Advances from FHLB     585,063       3,863     0.88       689,224       13,389     2.60  
    Subordinated debentures     222,470       7,602     4.56       37,376       1,462     5.22  
    Total borrowings     1,361,431       13,196     1.29       884,879       15,796     2.39  
    Total interest-bearing liabilities     7,305,250       48,437     0.89       5,289,364       62,754     1.59  
                                 
    Noninterest-bearing demand deposits     2,697,492                 1,797,301            
    Other liabilities     172,944                 122,564            
    Stockholders' equity     1,307,791                 1,098,700            
    Total liabilities and stockholders' equity   $ 11,483,477               $ 8,307,929            
                                 
    Net interest income and spread       $ 266,408     3.05 %     $ 203,322     3.06 %
    Less: tax-equivalent adjustment         3,076                 3,597        
    Net interest income       $ 263,332               $ 199,725        
                                 
    Interest income/earning assets           3.94 %         4.65 %
    Interest expense/earning assets           0.61             1.10  
    Net interest margin           3.33 %         3.55 %
                                 
    (1) Tax-equivalent income has been adjusted using the combined marginal federal and state rate of 25.54% and 26.13% for 2020 and 2019, respectively. The annualized taxable-equivalent adjustments utilized in the above table to compute yields aggregated to $3.1 million and $3.6 million in 2020 and 2019, respectively.
    (2) Non-accrual loans are included in the average balances.              
    (3) Includes only investments that are exempt from federal taxes.            
    (4) Available-for-sale investments are presented at amortized cost.            
                   




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    Sandy Spring Bancorp Reports Record Quarterly Earnings of $44.6 Million Year-Over-Year Operating Earnings Increase 49%OLNEY, Md., Oct. 22, 2020 (GLOBE NEWSWIRE) - Sandy Spring Bancorp, Inc., (Nasdaq-SASR), the parent company of Sandy Spring Bank, today reported record net income of $44.6 million ($0.94 per diluted …