Exhibit 99.1

NEWS RELEASE

FOR IMMEDIATE RELEASE

SANDY SPRING BANCORP REPORTS THIRD QUARTER EARNINGS OF $20.7 MILLION

OLNEY, MARYLAND, October 24, 2023 — Sandy Spring Bancorp, Inc. (Nasdaq-SASR), the parent company of Sandy Spring Bank, reported net income of $20.7 million ($0.46 per diluted common share)for the quarter ended September 30, 2023, compared to net income of $24.7 million ($0.55 per diluted common share) for the second quarter of 2023 and $33.6 million ($0.75 per diluted common share) for the third quarter of 2022. The decline in the current quarter's net income compared to the linked quarter was the result of the one-time pension settlement expense associated with the previously disclosed termination of the Company's pension plan, coupled with lower net interest income. These negative factors were partially offset by lower provision for credit losses and a decline in salaries and employee benefits expense after excluding the impact of the pension settlement expense.

Current quarter core earnings were $27.8 million ($0.62 per diluted common share), compared to $27.1 million ($0.60 per diluted common share) for the quarter ended June 30, 2023 and $35.7 million ($0.80 per diluted common share) for the quarter ended September 30, 2022. Core earnings exclude the after-tax impact of amortization of intangibles, investment securities gains or losses and non-recurring or extraordinary items. The increase in core earnings during the current quarter as compared to the previous quarter was a result of lower provision for credit losses, lower salaries and employee benefits expense, and lower marketing expense, offset by reduced net interest income.

“This quarter we demonstrated the effectiveness of our core funding strategies and ability to expand our reach in the Greater Washington region. We added over 1,500 clients in the quarter, which reflects over 1% growth in our client base,” said Daniel J. Schrider, Chairman, President and CEO of Sandy Spring Bank. "Additionally, we grew the Commercial & Industrial portfolio, reduced our Commercial Real Estate concentration, and maintained our credit quality."

“We are focused on capitalizing on this momentum to deepen existing client relationships and welcome new clients to Sandy Spring Bank,” Schrider added.

Third Quarter Highlights

•Total assets at September 30, 2023 increased by 1% to $14.1 billion compared to $14.0 billion at June 30, 2023.

•Total loans declined by $69.3 million or 1% to $11.3 billion at September 30, 2023 compared to $11.4 billion at June 30, 2023. During the current quarter, the Company reduced its concentration in the commercial real estate segments by $110.3 million, while commercial business loans and lines increased $31.1 million. The total residential mortgage loan portfolio grew $16.0 million mainly due to the migration of construction loans into the portfolio.

•Deposits increased $192.1 million or 2% to $11.2 billion at September 30, 2023 compared to $11.0 billion at June 30, 2023, as interest-bearing deposits increased $258.1 million or 3%, while noninterest-bearing deposits declined $66.0 million or 2%. Growth within interest-bearing deposit categories was driven by savings accounts and core time deposits, which increased by $277.4 million and $263.7 million, respectively. These increases were partially offset by the $155.8 million decrease in brokered time deposits, as the Company reduced its reliance on wholesale funding sources, and the $177.5 million decrease in money market accounts.

•Credit quality metrics remained at low levels during the current quarter. The ratio of non-performing loans to total loans was 0.46% at September 30, 2023 compared to 0.44% at June 30, 2023 and 0.40% at September 30, 2022. Net charge-off activity during the current quarter was insignificant.

•Total borrowings declined in the current quarter by $57.8 million or 4% over the amounts at June 30, 2023, mainly as a result of a $50.0 million reduction in FHLB advances.

•Net interest income for the third quarter of 2023 declined $5.4 million or 6% compared to the previous quarter and $27.9 million or 25% compared to the third quarter of 2022. During the recent quarter, the $4.3 million growth in

interest income was more than offset by the $9.7 million increase in interest expense, a result of the increased rates paid on deposits.

•The net interest margin was 2.55% for the third quarter of 2023 compared to 2.73% for the second quarter of 2023 and 3.53% for the third quarter of 2022. The decline in the net interest margin was the result of higher rates paid on interest-bearing liabilities, driven by higher market rates, competition for deposits, and customer movement of excess funds out of noninterest-bearing accounts, outpacing the increase in the yield on interest-earning assets. Compared to the linked quarter, the rate paid on interest-bearing liabilities rose 36 basis points, while the yield on interest-earning assets increased 8 basis points, resulting in the quarterly margin compression of 18 basis points.

•Provision for credit losses directly attributable to the funded loan portfolio for the current quarter was $3.2 million compared to $4.5 million in the previous quarter and $14.1 million in the prior year quarter. The provision for the current quarter was the product of increases in individual reserves on a few commercial lending relationships, which were partially offset by a qualitative adjustment related to reduced probability of an economic recession. In addition, during the current quarter the Company reduced its reserve for unfunded commitments by $0.8 million as a result of higher utilization of lines of credit.

•Non-interest income for the third quarter of 2023 increased by 1% or $0.2 million compared to the linked quarter and grew by 3% or $0.5 million compared to the prior year quarter. The quarter-over-quarter increase was mainly driven by higher wealth management income and higher lending-related fees, offset by lower BOLI income.

•Non-interest expense for the third quarter of 2023 increased $3.3 million or 5% compared to the second quarter of 2023 and $6.7 million or 10% compared to the prior year quarter. The current quarter included $8.2 million of pension settlement expense related to the termination of the Company's pension plan, while the previous quarter included $1.9 million of severance related expense associated with staffing adjustments. Excluding these items from the current and previous quarters, total non-interest expense declined by $2.9 million or 4% driven by lower salaries and employee benefits expense and lower marketing expense.

•Return on average assets (“ROA”) for the quarter ended September 30, 2023 was 0.58% and return on average tangible common equity (“ROTCE”) was 7.42% compared to 0.70% and 8.93%, respectively, for the second quarter of 2023 and 0.99% and 12.49%, respectively, for the third quarter of 2022. On a non-GAAP basis, the current quarter's core ROA was 0.78% and core ROTCE was 9.51% compared to 0.77% and 9.43%, respectively, for the previous quarter and 1.05% and 12.86%, respectively, for the third quarter of 2022.

•The GAAP efficiency ratio was 70.72% for the third quarter of 2023, compared to 64.22% for the second quarter of 2023 and 50.66% for the third quarter of 2022. The non-GAAP efficiency ratio was 60.91% for the third quarter of 2023 compared to 60.68% for the second quarter of 2023 and 48.18% for the prior year quarter. The increase in both the GAAP and non-GAAP efficiency ratios (reflecting a decrease in efficiency) in the current quarter compared to the previous quarter and the third quarter of the prior year was the result of declines in net revenue from the prior periods coupled with the growth in non-interest expense.

Balance Sheet and Credit Quality

Total assets were $14.1 billion at September 30, 2023, as compared to $14.0 billion at June 30, 2023. Total loans declined by $69.3 million or 1% to $11.3 billion at September 30, 2023 compared to $11.4 billion at June 30, 2023. Total commercial real estate and business loans declined $79.2 million quarter-over-quarter due to a $107.1 million or 10% decline in the AD&C loan portfolio, while investor and owner-occupied commercial real estate loan portfolios were relatively unchanged. Commercial business loans and lines increased $31.1 million or 2%. Total residential mortgage loans grew $16.0 million or 1% mainly due to the migration of construction loans into the residential mortgage portfolio. Overall, the loan portfolio mix remained relatively unchanged compared to the previous quarter.

Deposits increased $192.1 million or 2% to $11.2 billion at September 30, 2023 compared to $11.0 billion at June 30, 2023. During this period total interest-bearing deposits increased $258.1 million or 3%, while noninterest-bearing deposits declined $66.0 million or 2%. Growth within interest-bearing deposit categories was driven by savings accounts and core time deposits, which increased by $277.4 million and $263.7 million, respectively. These increases were partially offset by the $155.8 million decrease in brokered time deposits, as the Company reduced its reliance on wholesale funding sources, and the $177.5 million decrease in money market accounts. Total deposits, excluding brokered deposits, increased by $349.5 million or 4% quarter-over-quarter and represented 90% of the total deposits as of September 30, 2023 compared to 88% at June 30, 2023, reflecting the continued stability of the core deposit base. The deposit growth experienced during the current quarter resulted in the loan to deposit ratio declining to 101% at September 30, 2023 from 104% at June 30, 2023. Total uninsured deposits at September 30,

2023 were approximately 33% of the total deposits. The Company offers its customers reciprocal deposit arrangements, which provide FDIC deposit insurance for accounts that would otherwise exceed deposit insurance limits. During the quarter ended September 30, 2023, balances in the Company's reciprocal deposit accounts increased by $131.6 million.

Total borrowings declined by $57.8 million or 4% at September 30, 2023 as compared to the previous quarter, driven by a $50.0 million reduction in FHLB advances. The outstanding balance of borrowings through the Federal Reserve Bank's Bank Term Funding Program remained unchanged at $300.0 million at September 30, 2023. At September 30, 2023, contingent liquidity, which consists of available FHLB borrowings, fed funds, funds through the Federal Reserve Bank's discount window and the Bank Term Funding Program, as well as excess cash and unpledged investment securities totaled $6.1 billion or 168% of uninsured deposits. At September 30, 2023, total cash and cash equivalents were $717.6 million, an increase of $287.5 million or 67% compared to the linked quarter, primarily a result of strong deposit growth.

The tangible common equity ratio decreased to 8.42% of tangible assets at September 30, 2023, compared to 8.51% at June 30, 2023. This decrease reflected the impact of higher tangible assets while tangible common equity remained relatively unchanged quarter-over-quarter, as net retained earnings were offset by an increase in unrealized losses on available-for-sale investment securities.

At September 30, 2023, the Company had a total risk-based capital ratio of 14.85%, a common equity tier 1 risk-based capital ratio of 10.83%, a tier 1 risk-based capital ratio of 10.83%, and a tier 1 leverage ratio of 9.50%. 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. Overall credit quality remained stable at September 30, 2023 compared to June 30, 2023, as the ratio of non-performing loans to total loans was 0.46% compared to 0.44%. These levels of non-performing loans compare to 0.40% at September 30, 2022 and continue to indicate stable credit quality during a period of economic uncertainty. At September 30, 2023, non-performing loans totaled $51.8 million, compared to $49.5 million at June 30, 2023 and $44.5 million at September 30, 2022. Total net charge-offs for the current quarter amounted to $0.1 million compared to $1.8 million for the second quarter of 2023 and $0.5 million of net recoveries for the third quarter of 2022.

At September 30, 2023, the allowance for credit losses was $123.4 million or 1.09% of outstanding loans and 238% of non-performing loans, compared to $120.3 million or 1.06% of outstanding loans and 243% of non-performing loans at the end of the previous quarter and $128.3 million or 1.14% of outstanding loans and 289% of non-performing loans at the end of the third quarter of 2022. The increase in the allowance for the current quarter compared to the previous quarter mainly reflects increases in individual reserves recorded on a few commercial real estate relationships, partially offset by the reduction of the qualitative adjustment related to the probability of an economic recession.

Income Statement Review

Quarterly Results

Net income was $20.7 million ($0.46 per diluted common share) for the three months ended September 30, 2023 compared to $24.7 million ($0.55 per diluted common share) for the three months ended June 30, 2023 and $33.6 million ($0.75 per diluted common share) for the prior year quarter. The current quarter's core earnings were $27.8 million ($0.62 per diluted common share), compared to $27.1 million ($0.60 per diluted common share) for the previous quarter and $35.7 million ($0.80 per diluted common share) for the quarter ended September 30, 2022. The decline in the current quarter's net income compared to the previous quarter was the result of one-time pension settlement expense of $8.2 million, as the Company completed the termination of its pension plan, coupled with lower net interest income, partially offset by lower provision for credit losses and lower salaries expense. The increase in core earnings during the current quarter as compared to the previous quarter was a result of lower provision for credit losses, lower salaries and employee benefits expense, and lower marketing expense, offset by reduced net interest income.

Net interest income for the third quarter of 2023 decreased $5.4 million or 6% compared to the previous quarter and $27.9 million or 25% compared to the third quarter of 2022. Both quarterly and year-over-year decreases in net interest income were driven by higher interest expense, a result of higher funding costs, which outpaced growth in interest income. The rising interest rate environment was primarily responsible for a $32.0 million year-over-year increase in interest income. This growth in interest income was more than offset by the $59.9 million year-over-year growth in interest expense as funding costs have also risen in

response to the rising rate environment and significant competition for deposits. Interest income growth occurred in all categories of commercial loans and, to a lesser degree, in residential mortgage loans, consumer loans and investment securities income.

The net interest margin was 2.55% for the third quarter of 2023 compared to 2.73% for the second quarter of 2023 and 3.53% for the third quarter of 2022. The contraction of the net interest margin for the current quarter reflects the higher rate paid on interest-bearing liabilities, which outpaced the increase in the yield on interest-earning assets. The overall rate and yield increases were driven by the multiple federal funds rate increases that occurred over the preceding twelve months coupled with competition for deposits in the market, and customer movement of excess funds out of noninterest-bearing accounts into higher yielding products. As compared to the prior year quarter, the yield on interest-earning assets increased 76 basis points while the rate paid on interest-bearing liabilities rose 241 basis points, resulting in the margin compression of 98 basis points.

The total provision for credit losses was $2.4 million for the third quarter of 2023 compared to $5.1 million for the previous quarter and $18.9 million for the third quarter of 2022. The provision for credit losses directly attributable to the funded loan portfolio was $3.2 million for the current quarter compared to $4.5 million for the second quarter of 2023 and the prior year quarter’s provision of $14.1 million. The current quarter's provision mainly reflects an increase in individual reserves established on a few commercial real estate relationships.

Non-interest income for the third quarter of 2023 increased by 1% or $0.2 million compared to the linked quarter and grew by 3% or $0.5 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 higher wealth management income coupled with higher lending-related fees, partially offset by lower BOLI income due to mortality proceeds received in the prior quarter.

Non-interest expense for the third quarter of 2023 increased $3.3 million or 5% compared to the second quarter of 2023 and $6.7 million or 10% compared to the third quarter of 2022. The current quarter included $8.2 million of pension settlement expense related to the termination of the Company's pension plan, while the previous quarter included $1.9 million of severance related expense associated with staffing adjustments. Excluding these items from the current and previous quarters, total non-interest expense declined by $2.9 million or 4% driven by lower salaries and employee benefits and lower marketing expense. Excluding pension settlement expense from the current quarter, non-interest expense declined by $1.5 million or 2% year-over-year. This decline is primarily attributable to lower compensation expense, partially offset by higher professional fees related to the Company's investments in technology projects, and higher FDIC insurance expense, due to an increase in the assessment rate for all banks that became effective in 2023.

For the third quarter of 2023, the GAAP efficiency ratio was 70.72% compared to 64.22% for the second quarter of 2023 and 50.66% for the third quarter of 2022. The GAAP efficiency ratio rose from the prior year quarter primarily as a result of the 21% decrease in GAAP revenue in combination with the 10% increase in GAAP non-interest expense. The non-GAAP efficiency ratio was 60.91% for the current quarter as compared to 60.68% for the second quarter of 2023 and 48.18% for the third quarter of 2022. The increase in the non-GAAP efficiency ratio (reflecting a decrease in efficiency) from the third quarter of the prior year to the current year quarter was primarily the result of the 21% decline in non-GAAP revenue, while non-GAAP expenses were relatively unchanged.

ROA for the quarter ended September 30, 2023 was 0.58% and ROTCE was 7.42% compared to 0.70% and 8.93%, respectively, for the second quarter of 2023 and 0.99% and 12.49%, respectively, for the third quarter of 2022. On a non-GAAP basis, the current quarter's core ROA was 0.78% and core ROTCE was 9.51% compared to 0.77% and 9.43% for the second quarter of 2023 and 1.05% and 12.86%, respectively, for the third quarter of 2022.

Year-to-Date Results

The Company recorded net income of $96.7 million for the nine months ended September 30, 2023 compared to net income of $132.3 million for the same period in the prior year. Core earnings were $107.2 million for the nine months ended September 30, 2023 compared to $125.0 million for the same period in the prior year. Year-to-date net income declined as a result of the gain recognized on the sale of the Company's insurance segment during the prior year in combination with lower net interest income and higher non-interest expense, partially offset by lower provision for credit losses as a result of significant credit recorded during the first quarter of the current year.

For the nine months ended September 30, 2023, net interest income decreased $47.5 million compared to the prior year as a result of the $169.0 million increase in interest expense, partially offset by the $121.5 million increase in interest income. The increase in interest expense was driven by the interest expense on deposits, primarily associated with money market and time deposit accounts and, to a lesser degree, FHLB and Federal Reserve Bank borrowings. The net interest margin declined to 2.75% for the nine months ended September 30, 2023, compared to 3.50% for the prior year, primarily as a result of higher funding cost due to the rising interest rate environment and market competition for deposits during the period.

The provision for credit losses for the nine months ended September 30, 2023 amounted to a credit of $14.1 million as compared to a charge of $23.6 million for 2022. Credit to the provision for the nine months ended September 30, 2023 was a reflection of the improving regional forecasted unemployment rate, observed during the early part of the current year, coupled with the continued strong credit quality performance of the loan portfolio.

For the nine months ended September 30, 2023, non-interest income decreased 31% to $50.5 million compared to $72.7 million for 2022. During the prior year, the Company realized a $16.5 million gain on the sale of its insurance segment. Excluding the gain, non-interest income decreased 10% or $5.7 million, driven by a $2.9 million decrease in insurance commissions, a $2.6 million decrease in bank card fees and a $0.6 million decrease in income from mortgage banking activities. Insurance commission income declined due to the disposition of the Company's insurance business during the second quarter of the prior year. Fees from bank cards declined as a result of regulatory restrictions on transaction fees effective in the second half of the prior year. The decline in income from mortgage banking activities is the result of the rising interest rate environment, which continues to dampen home sales and refinancing activity. These decreases in non-interest income year-over-year were partially offset by a $0.8 million increase in BOLI mortality-related income.

Non-interest expense increased 8% to $207.9 million for the nine months ended September 30, 2023, compared to $192.9 million for 2022. Current year expense included pension settlement expense of $8.2 million and severance expense of $1.9 million, while the prior year included contingent earn-out expense associated with the 2020 acquisition of Rembert Pendleton Jackson of $1.2 million and merger, acquisition and disposal expense of $1.1 million. Excluding these items, non-interest expense increased by $7.2 million or 4% in the current year over the prior year. The drivers of the increase in non-interest expense were a $5.8 million increase in professional fees, a $3.5 million increase in FDIC expense, and a $1.4 million increase in software amortization expense. Excluding the pension settlement expense, total salaries and benefits expense declined by $3.5 million from the prior year period. Year-over-year increases in both professional fees and software amortization expense were mainly associated with the Company's investments in technology and software projects. The increase in FDIC insurance expense was a result of the two basis points increase in the assessment rate for all banks that became effective in 2023.

For the nine months ended September 30, 2023, the GAAP efficiency ratio was 64.29% compared to 49.08% for the same period in 2022. The non-GAAP efficiency ratio for the current year was 59.42% compared to the 49.09% for the prior year. The growth in the current year’s non-GAAP efficiency ratio compared to the prior year, indicating a decline in efficiency, was the result of the 14% decrease in non-GAAP revenue combined with the 4% 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 goodwill and other intangible assets.

•The non-GAAP efficiency ratio excludes amortization of intangible assets, investment securities gains/(losses), merger, acquisition and disposal expense, gain on disposal of assets, pension settlement expense, severance expense and 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 amortization of intangible assets, pension settlement expense, investment securities gains/(losses) and other non-recurring or extraordinary items, on a net of tax basis.

•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.

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 1-833-470-1428. Please use the following access code: 724249. 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 November 7, 2023. A replay of the teleconference will be available through the same time period by calling 1-866-813-9403 under conference call number 896518.

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.

Category: Webcast

Source: Sandy Spring Bancorp, Inc.

Code: SASR-E

For additional information or questions, please contact:

Daniel J. Schrider, Chair, 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, Senior Vice President

301-570-8331

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; the ability to realize benefits and cost savings from, and limit any unexpected liabilities associated with, any business combinations; 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. Sandy Spring Bancorp provides greater detail regarding some of these factors in its Form 10-K for the year ended December 31, 2022 and its Form 10-Q for the quarter ended June 30, 2023, 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 September 30,						% Change		Nine Months Ended September 30,						% Change
(Dollars in thousands, except per share data)	2023			2022					2023			2022
Results of operations:
Net interest income	$	85,081		$	112,960		(25)	%	$	272,854		$	320,361		(15)	%
Provision/ (credit) for credit losses	2,365			18,890			(87)		(14,116)			23,571			N/M
Non-interest income	17,391			16,882			3		50,518			72,722			(31)
Non-interest expense	72,471			65,780			10		207,912			192,918			8
Income before income tax expense	27,636			45,172			(39)		129,576			176,594			(27)
Net income	20,746			33,584			(38)		96,744			132,319			(27)
Net income attributable to common shareholders	$	20,719		$	33,470		(38)		$	96,552		$	131,744		(27)
Pre-tax pre-provision net income (1)	$	30,001		$	64,062		(53)		$	115,460		$	200,165		(42)
Return on average assets	0.58		%	0.99		%			0.92		%	1.36		%
Return on average common equity	5.35		%	8.96		%			8.50		%	11.90		%
Return on average tangible common equity (1)	7.42		%	12.49		%			11.67		%	16.54		%
Net interest margin	2.55		%	3.53		%			2.75		%	3.50		%
Efficiency ratio - GAAP basis (2)	70.72		%	50.66		%			64.29		%	49.08		%
Efficiency ratio - Non-GAAP basis (2)	60.91		%	48.18		%			59.42		%	49.09		%
Per share data:
Basic net income per common share	$	0.46		$	0.75		(39)	%	$	2.16		$	2.93		(26)	%
Diluted net income per common share	$	0.46		$	0.75		(38)		$	2.15		$	2.92		(26)
Weighted average diluted common shares	44,960,455			44,780,560			—		44,912,803			45,098,073			—
Dividends declared per share	$	0.34		$	0.34		—		$	1.02		$	1.02		—
Book value per common share	$	34.26		$	32.52		5		$	34.26		$	32.52		5
Tangible book value per common share (1)	$	25.80		$	23.90		8		$	25.80		$	23.90		8
Outstanding common shares	44,895,158			44,644,269			1		44,895,158			44,644,269			1
Financial condition at period-end:
Investment securities	$	1,392,078		$	1,587,279		(12)	%	$	1,392,078		$	1,587,279		(12)	%
Loans	11,300,292			11,218,813			1		11,300,292			11,218,813			1
Assets	14,135,085			13,765,597			3		14,135,085			13,765,597			3
Deposits	11,151,012			10,749,486			4		11,151,012			10,749,486			4
Stockholders' equity	1,537,914			1,451,862			6		1,537,914			1,451,862			6
Capital ratios:
Tier 1 leverage (3)	9.50		%	9.33		%			9.50		%	9.33		%
Common equity tier 1 capital to risk-weighted assets (3)	10.83		%	10.18		%			10.83		%	10.18		%
Tier 1 capital to risk-weighted assets (3)	10.83		%	10.18		%			10.83		%	10.18		%
Total regulatory capital to risk-weighted assets (3)	14.85		%	14.15		%			14.85		%	14.15		%
Tangible common equity to tangible assets (4)	8.42		%	7.98		%			8.42		%	7.98		%
Average equity to average assets	10.92		%	10.99		%			10.84		%	11.41		%
Credit quality ratios:
Allowance for credit losses to loans	1.09		%	1.14		%			1.09		%	1.14		%
Non-performing loans to total loans	0.46		%	0.40		%			0.46		%	0.40		%
Non-performing assets to total assets	0.37		%	0.33		%			0.37		%	0.33		%
Allowance for credit losses to non-performing loans	238.32		%	288.50		%			238.32		%	288.50		%
Annualized net charge-offs/ (recoveries) to average loans (5)	—		%	(0.02)		%			0.02		%	—		%

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 intangible asset amortization, merger, acquisition and disposal expense, severance expense, pension settlement expense and contingent payment expense from non-interest expense; and investment securities gains/ (losses) and gain on disposal of assets 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, 2023.

(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 September 30,						Nine Months Ended September 30,
(Dollars in thousands)	2023			2022			2023			2022
Core earnings (non-GAAP):
Net income (GAAP)	$	20,746		$	33,584		$	96,744		$	132,319
Plus/ (less) non-GAAP adjustments (net of tax)(1):
Merger, acquisition and disposal expense	—			—			—			796
Amortization of intangible assets	932			1,076			2,851			3,284
Severance expense	—			—			1,445			—
Pension settlement expense	6,088			—			6,088			—
Gain on disposal of assets	—			108			—			(12,309)
Investment securities gains	—			(2)			—			(36)
Contingent payment expense	—			929			27			929
Core earnings (Non-GAAP)	$	27,766		$	35,695		$	107,155		$	124,983
Core earnings per diluted common share (non-GAAP):
Weighted average common shares outstanding - diluted (GAAP)	44,960,455			44,780,560			44,912,803			45,098,073
Earnings per diluted common share (GAAP)	$	0.46		$	0.75		$	2.15		$	2.92
Core earnings per diluted common share (non-GAAP)	$	0.62		$	0.80		$	2.39		$	2.77
Core return on average assets (non-GAAP):
Average assets (GAAP)	$	14,086,342		$	13,521,595		$	14,043,925		$	13,033,256
Return on average assets (GAAP)	0.58		%	0.99		%	0.92		%	1.36		%
Core return on average assets (non-GAAP)	0.78		%	1.05		%	1.02		%	1.28		%
Return/ Core return on average tangible common equity (non-GAAP):
Net Income (GAAP)	$	20,746		$	33,584		$	96,744		$	132,319
Plus: Amortization of intangible assets (net of tax)	932			1,076			2,851			3,284
Net income before amortization of intangible assets	$	21,678		$	34,660		$	99,595		$	135,603
Average total stockholders' equity (GAAP)	$	1,538,553		$	1,486,427		$	1,522,153		$	1,486,920
Average goodwill	(363,436)			(363,436)			(363,436)			(367,190)
Average other intangible assets, net	(16,777)			(22,187)			(18,068)			(23,774)
Average tangible common equity (non-GAAP)	$	1,158,340		$	1,100,804		$	1,140,649		$	1,095,956
Return on average tangible common equity (non-GAAP)	7.42		%	12.49		%	11.67		%	16.54		%
Core return on average tangible common equity (non-GAAP)	9.51		%	12.86		%	12.56		%	15.25		%

(1) Tax adjustments have been determined using the combined marginal federal and state rate of 25.37% and 25.47% for 2023 and 2022, respectively.

Sandy Spring Bancorp, Inc. and Subsidiaries

RECONCILIATION TABLE - UNAUDITED

	Three Months Ended September 30,					Nine Months Ended September 30,
(Dollars in thousands)	2023		2022			2023			2022
Pre-tax pre-provision net income:
Net income (GAAP)	$	20,746	$	33,584		$	96,744		$	132,319
Plus/ (less) non-GAAP adjustments:
Income tax expense	6,890		11,588			32,832			44,275
Provision/ (credit) for credit losses	2,365		18,890			(14,116)			23,571
Pre-tax pre-provision net income (non-GAAP)	$	30,001	$	64,062		$	115,460		$	200,165
Efficiency ratio (GAAP):
Non-interest expense	$	72,471	$	65,780		$	207,912		$	192,918
Net interest income plus non-interest income	$	102,472	$	129,842		$	323,372		$	393,083
Efficiency ratio (GAAP)	70.72%		50.66		%	64.29		%	49.08		%
Efficiency ratio (Non-GAAP):
Non-interest expense	$	72,471	$	65,780		$	207,912		$	192,918
Less non-GAAP adjustments:
Amortization of intangible assets	1,245		1,432			3,820			4,406
Merger, acquisition and disposal expense	—		1			—			1,068
Severance expense	—		—			1,939			—
Pension settlement expense	8,157		—			8,157			—
Contingent payment expense	—		1,247			36			1,247
Non-interest expense - as adjusted	$	63,069	$	63,100		$	193,960		$	186,197
Net interest income plus non-interest income	$	102,472	$	129,842		$	323,372		$	393,083
Plus non-GAAP adjustment:
Tax-equivalent income	1,068		951			3,044			2,809
Less/ (plus) non-GAAP adjustment:
Investment securities gains	—		2			—			48
Gain on disposal of assets	—		(183)			—			16,516
Net interest income plus non-interest income - as adjusted	$	103,540	$	130,974		$	326,416		$	379,328
Efficiency ratio (Non-GAAP)	60.91%		48.18		%	59.42		%	49.09		%
Tangible common equity ratio:
Total stockholders' equity	$	1,537,914	$	1,451,862		$	1,537,914		$	1,451,862
Goodwill	(363,436)		(363,436)			(363,436)			(363,436)
Other intangible assets, net	(16,035)		(21,262)			(16,035)			(21,262)
Tangible common equity	$	1,158,443	$	1,067,164		$	1,158,443		$	1,067,164
Total assets	$	14,135,085	$	13,765,597		$	14,135,085		$	13,765,597
Goodwill	(363,436)		(363,436)			(363,436)			(363,436)
Other intangible assets, net	(16,035)		(21,262)			(16,035)			(21,262)
Tangible assets	$	13,755,614	$	13,380,899		$	13,755,614		$	13,380,899
Tangible common equity ratio	8.42%		7.98		%	8.42		%	7.98		%
Outstanding common shares	44,895,158		44,644,269			44,895,158			44,644,269
Tangible book value per common share	$	25.80	$	23.90		$	25.80		$	23.90

Sandy Spring Bancorp, Inc. and Subsidiaries

CONDENSED CONSOLIDATED STATEMENTS OF CONDITION - UNAUDITED

(Dollars in thousands)	September 30, 2023		December 31, 2022		September 30, 2022
Assets
Cash and due from banks	$	80,314	$	88,152	$	88,780
Federal funds sold	251		193		213
Interest-bearing deposits with banks	637,026		103,887		169,815
Cash and cash equivalents	717,591		192,232		258,808
Residential mortgage loans held for sale (at fair value)	19,235		11,706		11,469
Investments held-to-maturity (fair values of $194,411, $220,123 and $226,030 at September 30, 2023, December 31, 2022 and September 30, 2022, respectively)	241,464		259,452		265,648
Investments available-for-sale (at fair value)	1,075,089		1,214,538		1,244,335
Other investments, at cost	75,525		69,218		77,296
Total loans	11,300,292		11,396,706		11,218,813
Less: allowance for credit losses - loans	(123,360)		(136,242)		(128,268)
Net loans	11,176,932		11,260,464		11,090,545
Premises and equipment, net	72,312		67,070		64,703
Other real estate owned	261		645		739
Accrued interest receivable	45,100		41,172		37,074
Goodwill	363,436		363,436		363,436
Other intangible assets, net	16,035		19,855		21,262
Other assets	332,105		333,331		330,282
Total assets	$	14,135,085	$	13,833,119	$	13,765,597
Liabilities
Noninterest-bearing deposits	$	3,013,905	$	3,673,300	$	3,993,480
Interest-bearing deposits	8,137,107		7,280,121		6,756,006
Total deposits	11,151,012		10,953,421		10,749,486
Securities sold under retail repurchase agreements	66,581		61,967		91,287
Federal funds purchased	—		260,000		115,000
Federal Reserve Bank borrowings	300,000		—		—
Advances from FHLB	550,000		550,000		840,000
Subordinated debt	370,653		370,205		370,056
Total borrowings	1,287,234		1,242,172		1,416,343
Accrued interest payable and other liabilities	158,925		153,758		147,906
Total liabilities	12,597,171		12,349,351		12,313,735
Stockholders' equity
Common stock -- par value $1.00; shares authorized 100,000,000; shares issued and outstanding 44,895,158, 44,657,054 and 44,644,269 at September 30, 2023, December 31, 2022 and September 30, 2022, respectively	44,895		44,657		44,644
Additional paid in capital	740,999		734,273		732,239
Retained earnings	887,512		836,789		818,049
Accumulated other comprehensive loss	(135,492)		(131,951)		(143,070)
Total stockholders' equity	1,537,914		1,483,768		1,451,862
Total liabilities and stockholders' equity	$	14,135,085	$	13,833,119	$	13,765,597

Sandy Spring Bancorp, Inc. and Subsidiaries

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED

	Three Months Ended September 30,				Nine Months Ended September 30,
(Dollars in thousands, except per share data)	2023		2022		2023		2022
Interest income:
Interest and fees on loans	$	147,304	$	121,327	$	431,305	$	327,042
Interest on loans held for sale	238		161		697		504
Interest on deposits with banks	6,371		774		13,979		1,245
Interest and dividend income on investment securities:
Taxable	6,682		5,735		20,538		14,472
Tax-advantaged	1,811		2,422		5,376		7,100
Interest on federal funds sold	5		3		13		4
Total interest income	162,411		130,422		471,908		350,367
Interest expense:
Interest on deposits	63,102		9,490		155,215		15,578
Interest on retail repurchase agreements and federal funds purchased	4,082		977		10,377		1,232
Interest on advances from FHLB	6,200		3,049		21,623		3,066
Interest on subordinated debt	3,946		3,946		11,839		10,130
Total interest expense	77,330		17,462		199,054		30,006
Net interest income	85,081		112,960		272,854		320,361
Provision/ (credit) for credit losses	2,365		18,890		(14,116)		23,571
Net interest income after provision/ (credit) for credit losses	82,716		94,070		286,970		296,790
Non-interest income:
Investment securities gains	—		2		—		48
Gain on disposal of assets	—		(183)		—		16,516
Service charges on deposit accounts	2,704		2,591		7,698		7,384
Mortgage banking activities	1,682		1,566		4,744		5,347
Wealth management income	9,391		8,867		27,414		27,302
Insurance agency commissions	—		—		—		2,927
Income from bank owned life insurance	845		693		3,003		2,191
Bank card fees	450		438		1,315		3,916
Other income	2,319		2,908		6,344		7,091
Total non-interest income	17,391		16,882		50,518		72,722
Non-interest expense:
Salaries and employee benefits	44,853		40,126		124,710		119,049
Occupancy expense of premises	4,609		4,759		14,220		14,527
Equipment expenses	3,811		3,825		11,688		10,920
Marketing	729		1,370		3,861		3,843
Outside data services	2,819		2,509		8,186		7,492
FDIC insurance	2,333		1,268		6,846		3,330
Amortization of intangible assets	1,245		1,432		3,820		4,406
Merger, acquisition and disposal expense	—		1		—		1,068
Professional fees and services	4,509		2,207		12,354		6,596
Other expenses	7,563		8,283		22,227		21,687
Total non-interest expense	72,471		65,780		207,912		192,918
Income before income tax expense	27,636		45,172		129,576		176,594
Income tax expense	6,890		11,588		32,832		44,275
Net income	$	20,746	$	33,584	$	96,744	$	132,319
Net income per share amounts:
Basic net income per common share	$	0.46	$	0.75	$	2.16	$	2.93
Diluted net income per common share	$	0.46	$	0.75	$	2.15	$	2.92
Dividends declared per share	$	0.34	$	0.34	$	1.02	$	1.02

Sandy Spring Bancorp, Inc. and Subsidiaries

HISTORICAL TRENDS - QUARTERLY FINANCIAL DATA - UNAUDITED

	2023									2022
(Dollars in thousands, except per share data)	Q3			Q2			Q1			Q4			Q3			Q2			Q1
Profitability for the quarter:
Tax-equivalent interest income	$	163,479		$	159,156		$	152,317		$	146,332		$	131,373		$	114,901		$	106,902
Interest expense	77,330			67,679			54,045			38,657			17,462			7,959			4,585
Tax-equivalent net interest income	86,149			91,477			98,272			107,675			113,911			106,942			102,317
Tax-equivalent adjustment	1,068			1,006			970			1,032			951			992			866
Provision/ (credit) for credit losses	2,365			5,055			(21,536)			10,801			18,890			3,046			1,635
Non-interest income	17,391			17,176			15,951			14,297			16,882			35,245			20,595
Non-interest expense	72,471			69,136			66,305			64,375			65,780			64,991			62,147
Income before income tax expense	27,636			33,456			68,484			45,764			45,172			73,158			58,264
Income tax expense	6,890			8,711			17,231			11,784			11,588			18,358			14,329
Net income	$	20,746		$	24,745		$	51,253		$	33,980		$	33,584		$	54,800		$	43,935
GAAP financial performance:
Return on average assets	0.58		%	0.70		%	1.49		%	0.98		%	0.99		%	1.69		%	1.42		%
Return on average common equity	5.35		%	6.46		%	13.93		%	9.23		%	8.96		%	14.97		%	11.83		%
Return on average tangible common equity	7.42		%	8.93		%	19.10		%	12.91		%	12.49		%	20.83		%	16.45		%
Net interest margin	2.55		%	2.73		%	2.99		%	3.26		%	3.53		%	3.49		%	3.49		%
Efficiency ratio - GAAP basis	70.72		%	64.22		%	58.55		%	53.23		%	50.66		%	46.03		%	50.92		%
Non-GAAP financial performance:
Pre-tax pre-provision net income	$	30,001		$	38,511		$	46,948		$	56,565		$	64,062		$	76,204		$	59,899
Core after-tax earnings	$	27,766		$	27,136		$	52,253		$	35,322		$	35,695		$	44,238		$	45,050
Core return on average assets	0.78		%	0.77		%	1.52		%	1.02		%	1.05		%	1.37		%	1.45		%
Core return on average common equity	7.16		%	7.09		%	14.20		%	9.60		%	9.53		%	12.09		%	12.13		%
Core return on average tangible common equity	9.51		%	9.43		%	19.11		%	13.02		%	12.86		%	16.49		%	16.45		%
Core earnings per diluted common share	$	0.62		$	0.60		$	1.16		$	0.79		$	0.80		$	0.98		$	0.99
Efficiency ratio - Non-GAAP basis	60.91		%	60.68		%	56.87		%	51.46		%	48.18		%	49.79		%	49.34		%
Per share data:
Net income attributable to common shareholders	$	20,719		$	24,712		$	51,084		$	33,866		$	33,470		$	54,606		$	43,667
Basic net income per common share	$	0.46		$	0.55		$	1.14		$	0.76		$	0.75		$	1.21		$	0.97
Diluted net income per common share	$	0.46		$	0.55		$	1.14		$	0.76		$	0.75		$	1.21		$	0.96
Weighted average diluted common shares	44,960,455			44,888,759			44,872,582			44,828,827			44,780,560			45,111,693			45,333,292
Dividends declared per share	$	0.34		$	0.34		$	0.34		$	0.34		$	0.34		$	0.34		$	0.34
Non-interest income:
Securities gains/ (losses)	$	—		$	—		$	—		$	(393)		$	2		$	38		$	8
Gain/ (loss) on disposal of assets	—			—			—			—			(183)			16,699			—
Service charges on deposit accounts	2,704			2,606			2,388			2,419			2,591			2,467			2,326
Mortgage banking activities	1,682			1,817			1,245			783			1,566			1,483			2,298
Wealth management income	9,391			9,031			8,992			8,472			8,867			9,098			9,337
Insurance agency commissions	—			—			—			—			—			812			2,115
Income from bank owned life insurance	845			1,251			907			950			693			703			795
Bank card fees	450			447			418			463			438			1,810			1,668
Other income	2,319			2,024			2,001			1,603			2,908			2,135			2,048
Total non-interest income	$	17,391		$	17,176		$	15,951		$	14,297		$	16,882		$	35,245		$	20,595
Non-interest expense:
Salaries and employee benefits	$	44,853		$	40,931		$	38,926		$	39,455		$	40,126		$	39,550		$	39,373
Occupancy expense of premises	4,609			4,764			4,847			4,728			4,759			4,734			5,034
Equipment expenses	3,811			3,760			4,117			3,859			3,825			3,559			3,536
Marketing	729			1,589			1,543			1,354			1,370			1,280			1,193
Outside data services	2,819			2,853			2,514			2,707			2,509			2,564			2,419
FDIC insurance	2,333			2,375			2,138			1,462			1,268			1,078			984
Amortization of intangible assets	1,245			1,269			1,306			1,408			1,432			1,466			1,508
Merger, acquisition and disposal expense	—			—			—			—			1			1,067			—
Professional fees and services	4,509			4,161			3,684			2,573			2,207			2,372			2,017
Other expenses	7,563			7,434			7,230			6,829			8,283			7,321			6,083
Total non-interest expense	$	72,471		$	69,136		$	66,305		$	64,375		$	65,780		$	64,991		$	62,147

Sandy Spring Bancorp, Inc. and Subsidiaries

HISTORICAL TRENDS - QUARTERLY FINANCIAL DATA - UNAUDITED

	2023									2022
(Dollars in thousands, except per share data)	Q3			Q2			Q1			Q4			Q3			Q2			Q1
Balance sheets at quarter end:
Commercial investor real estate loans	$	5,137,694		$	5,131,210		$	5,167,456		$	5,130,094		$	5,066,843		$	4,761,658		$	4,388,275
Commercial owner-occupied real estate loans	1,760,384			1,770,135			1,769,928			1,775,037			1,743,724			1,767,326			1,692,253
Commercial AD&C loans	938,673			1,045,742			1,046,665			1,090,028			1,143,783			1,094,528			1,089,331
Commercial business loans	1,454,709			1,423,614			1,437,478			1,455,885			1,393,634			1,353,380			1,349,602
Residential mortgage loans	1,432,051			1,385,743			1,328,524			1,287,933			1,218,552			1,147,577			1,000,697
Residential construction loans	160,345			190,690			223,456			224,772			229,243			235,486			204,259
Consumer loans	416,436			422,505			421,734			432,957			423,034			426,335			419,911
Total loans	11,300,292			11,369,639			11,395,241			11,396,706			11,218,813			10,786,290			10,144,328
Allowance for credit losses - loans	(123,360)			(120,287)			(117,613)			(136,242)			(128,268)			(113,670)			(110,588)
Loans held for sale	19,235			21,476			16,262			11,706			11,469			23,610			17,537
Investment securities	1,392,078			1,463,554			1,528,336			1,543,208			1,587,279			1,595,424			1,586,441
Total assets	14,135,085			13,994,545			14,129,007			13,833,119			13,765,597			13,303,009			12,967,416
Noninterest-bearing demand deposits	3,013,905			3,079,896			3,228,678			3,673,300			3,993,480			4,129,440			4,039,797
Total deposits	11,151,012			10,958,922			11,075,991			10,953,421			10,749,486			10,969,461			10,852,794
Customer repurchase agreements	66,581			74,510			47,627			61,967			91,287			110,744			130,784
Total stockholders' equity	1,537,914			1,539,032			1,536,865			1,483,768			1,451,862			1,477,169			1,488,910
Quarterly average balance sheets:
Commercial investor real estate loans	$	5,125,459		$	5,146,632		$	5,136,204		$	5,082,697		$	4,898,683		$	4,512,937		$	4,220,246
Commercial owner-occupied real estate loans	1,769,717			1,773,039			1,769,680			1,753,351			1,755,891			1,727,325			1,683,557
Commercial AD&C loans	995,682			1,057,205			1,082,791			1,136,780			1,115,531			1,096,369			1,102,660
Commercial business loans	1,442,518			1,441,489			1,444,588			1,373,565			1,327,218			1,334,350			1,372,755
Residential mortgage loans	1,406,929			1,353,809			1,307,761			1,251,829			1,177,664			1,070,836			964,056
Residential construction loans	174,204			211,590			223,313			231,318			235,123			221,031			197,366
Consumer loans	421,189			423,306			424,122			426,134			422,963			421,022			424,859
Total loans	11,335,698			11,407,070			11,388,459			11,255,674			10,933,073			10,383,870			9,965,499
Loans held for sale	13,714			17,480			8,324			10,901			15,211			12,744			17,594
Investment securities	1,589,342			1,639,324			1,679,593			1,717,455			1,734,036			1,686,181			1,617,615
Interest-earning assets	13,444,117			13,423,589			13,316,165			13,134,234			12,833,758			12,283,834			11,859,803
Total assets	14,086,342			14,094,653			13,949,276			13,769,472			13,521,595			12,991,692			12,576,089
Noninterest-bearing demand deposits	3,041,101			3,137,971			3,480,433			3,833,275			3,995,702			4,001,762			3,758,732
Total deposits	11,076,724			10,928,038			11,049,991			11,025,843			10,740,999			10,829,221			10,542,029
Customer repurchase agreements	67,298			58,382			60,626			74,797			104,742			122,728			131,487
Total interest-bearing liabilities	9,332,617			9,257,652			8,806,720			8,310,278			7,892,230			7,377,045			7,163,641
Total stockholders' equity	1,538,553			1,535,465			1,491,929			1,460,254			1,486,427			1,468,036			1,506,516
Financial measures:
Average equity to average assets	10.92		%	10.89		%	10.70		%	10.61		%	10.99		%	11.30		%	11.98		%
Average investment securities to average earning assets	11.82		%	12.21		%	12.61		%	13.08		%	13.51		%	13.73		%	13.64		%
Average loans to average earning assets	84.32		%	84.98		%	85.52		%	85.70		%	85.19		%	84.53		%	84.03		%
Loans to assets	79.94		%	81.24		%	80.65		%	82.39		%	81.50		%	81.08		%	78.23		%
Loans to deposits	101.34		%	103.75		%	102.88		%	104.05		%	104.37		%	98.33		%	93.47		%
Assets under management	$	5,536,499		$	5,742,888		$	5,477,560		$	5,255,306		$	4,969,092		$	5,171,321		$	5,793,787
Capital measures:
Tier 1 leverage (1)	9.50		%	9.42		%	9.44		%	9.33		%	9.33		%	9.53		%	9.66		%
Common equity tier 1 capital to risk-weighted assets (1)	10.83		%	10.65		%	10.53		%	10.23		%	10.18		%	10.42		%	10.78		%
Tier 1 capital to risk-weighted assets (1)	10.83		%	10.65		%	10.53		%	10.23		%	10.18		%	10.42		%	10.78		%
Total regulatory capital to risk-weighted assets (1)	14.85		%	14.60		%	14.43		%	14.20		%	14.15		%	14.46		%	15.02		%
Book value per common share	$	34.26		$	34.31		$	34.37		$	33.23		$	32.52		$	33.10		$	32.97
Outstanding common shares	44,895,158			44,862,369			44,712,497			44,657,054			44,644,269			44,629,697			45,162,908

(1) Estimated ratio at September 30, 2023.

Sandy Spring Bancorp, Inc. and Subsidiaries

LOAN PORTFOLIO QUALITY DETAIL - UNAUDITED

	2023						2022
(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	$	—	$	—	$	215	$	—	$	—	$	—	$	—
Commercial owner-occupied real estate	—		—		—		—		—		—		—
Commercial AD&C	—		—		—		—		—		—		—
Commercial business	415		29		3,002		1,002		1,966		—		—
Residential real estate:
Residential mortgage	—		692		352		—		167		353		296
Residential construction	—		—		—		—		—		—		—
Consumer	—		—		—		—		34		—		—
Total loans 90 days past due	415		721		3,569		1,002		2,167		353		296
Non-accrual loans:
Commercial real estate:
Commercial investor real estate	20,108		20,381		15,451		9,943		14,038		11,245		11,743
Commercial owner-occupied real estate	4,744		4,846		4,949		5,019		6,294		7,869		8,083
Commercial AD&C	1,422		569		—		—		—		1,353		1,081
Commercial business	9,671		9,393		9,443		7,322		7,198		7,542		8,357
Residential real estate:
Residential mortgage	10,766		10,153		8,935		7,439		7,514		7,305		8,148
Residential construction	449		—		—		—		—		1		51
Consumer	4,187		3,396		4,900		5,059		5,173		5,692		6,406
Total non-accrual loans	51,347		48,738		43,678		34,782		40,217		41,007		43,869
Total restructured loans - accruing (1)	—		—		—		3,575		2,077		2,119		2,161
Total non-performing loans	51,762		49,459		47,247		39,359		44,461		43,479		46,326
Other assets and other real estate owned (OREO)	261		611		645		645		739		739		1,034
Total non-performing assets	$	52,023	$	50,070	$	47,892	$	40,004	$	45,200	$	44,218	$	47,360

	For the Quarter Ended,
(Dollars in thousands)	September 30, 2023			June 30, 2023			March 31, 2023			December 31, 2022			September 30, 2022			June 30, 2022			March 31, 2022
Analysis of non-accrual loan activity:
Balance at beginning of period	$	48,738		$	43,678		$	34,782		$	40,217		$	41,007		$	43,869		$	46,086
Non-accrual balances transferred to OREO	—			—			—			—			—			—			—
Non-accrual balances charged-off	(183)			(2,049)			(126)			(22)			(197)			(376)			(265)
Net payments or draws	(1,545)			(1,654)			(10,212)			(9,535)			(3,509)			(3,234)			(2,787)
Loans placed on non-accrual	4,967			9,276			19,714			5,467			4,212			948			1,503
Non-accrual loans brought current	(630)			(513)			(480)			(1,345)			(1,296)			(200)			(668)
Balance at end of period	$	51,347		$	48,738		$	43,678		$	34,782		$	40,217		$	41,007		$	43,869
Analysis of allowance for credit losses - loans:
Balance at beginning of period	$	120,287		$	117,613		$	136,242		$	128,268		$	113,670		$	110,588		$	109,145
Provision/ (credit) for credit losses - loans	3,171			4,454			(18,945)			7,907			14,092			3,046			1,635
Less loans charged-off, net of recoveries:
Commercial real estate:
Commercial investor real estate	(3)			(14)			(5)			(1)			—			(300)			(19)
Commercial owner-occupied real estate	(25)			(27)			(26)			(27)			(10)			(12)			—
Commercial AD&C	—			—			—			—			—			—			—
Commercial business	15			363			(127)			(13)			(512)			331			111
Residential real estate:
Residential mortgage	(4)			35			21			(50)			(8)			(9)			120
Residential construction	—			—			—			—			(3)			(5)			—
Consumer	115			1,423			(179)			24			27			(41)			(20)
Net charge-offs/ (recoveries)	98			1,780			(316)			(67)			(506)			(36)			192
Balance at the end of period	$	123,360		$	120,287		$	117,613		$	136,242		$	128,268		$	113,670		$	110,588
Asset quality ratios:
Non-performing loans to total loans	0.46		%	0.44		%	0.41		%	0.35		%	0.40		%	0.40		%	0.46		%
Non-performing assets to total assets	0.37		%	0.36		%	0.34		%	0.29		%	0.33		%	0.33		%	0.37		%
Allowance for credit losses to loans	1.09		%	1.06		%	1.03		%	1.20		%	1.14		%	1.05		%	1.09		%
Allowance for credit losses to non-performing loans	238.32		%	243.21		%	248.93		%	346.15		%	288.50		%	261.44		%	238.72		%
Annualized net charge-offs/ (recoveries) to average loans	—		%	0.06		%	(0.01)		%	—		%	(0.02)		%	—		%	0.01		%

(1) Effective January 1, 2023, the Company adopted ASU 2022-02, which eliminated the accounting and recognition of troubled debt restructurings ("TDRs").

Sandy Spring Bancorp, Inc. and Subsidiaries

CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES - UNAUDITED

	Three Months Ended September 30,
	2023						2022
(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	$	5,125,459	$	60,482	4.68	%	$	4,898,683	$	51,463	4.17	%
Commercial owner-occupied real estate loans	1,769,717		20,865		4.68		1,755,891		20,284		4.58
Commercial AD&C loans	995,682		20,503		8.17		1,115,531		15,501		5.51
Commercial business loans	1,442,518		23,343		6.42		1,327,218		17,196		5.14
Total commercial loans	9,333,376		125,193		5.32		9,097,323		104,444		4.55
Residential mortgage loans	1,406,929		12,550		3.57		1,177,664		9,980		3.39
Residential construction loans	174,204		1,680		3.83		235,123		1,845		3.11
Consumer loans	421,189		8,491		8.00		422,963		5,531		5.19
Total residential and consumer loans	2,002,322		22,721		4.52		1,835,750		17,356		3.77
Total loans (2)	11,335,698		147,914		5.18		10,933,073		121,800		4.42
Loans held for sale	13,714		238		6.93		15,211		161		4.24
Taxable securities	1,239,564		6,682		2.16		1,251,599		5,735		1.83
Tax-advantaged securities	349,778		2,269		2.59		482,437		2,900		2.40
Total investment securities (3)	1,589,342		8,951		2.25		1,734,036		8,635		1.99
Interest-bearing deposits with banks	505,017		6,371		5.00		150,992		774		2.03
Federal funds sold	346		5		5.38		446		3		2.30
Total interest-earning assets	13,444,117		163,479		4.83		12,833,758		131,373		4.07
Less: allowance for credit losses - loans	(122,348)						(114,512)
Cash and due from banks	93,354						93,327
Premises and equipment, net	71,956						64,039
Other assets	599,263						644,983
Total assets	$	14,086,342					$	13,521,595
Liabilities and Stockholders' Equity
Interest-bearing demand deposits	$	1,419,934	$	4,229	1.18	%	$	1,444,801	$	941	0.26	%
Regular savings deposits	861,634		5,571		2.57		555,057		21		0.02
Money market savings deposits	2,866,744		25,122		3.48		3,202,507		5,281		0.65
Time deposits	2,887,311		28,180		3.87		1,542,932		3,247		0.83
Total interest-bearing deposits	8,035,623		63,102		3.12		6,745,297		9,490		0.56
Repurchase agreements	67,298		356		2.10		104,742		30		0.11
Federal funds purchased and Federal Reserve Bank borrowings	300,435		3,726		4.92		158,211		947		2.37
Advances from FHLB	558,696		6,200		4.40		514,022		3,049		2.35
Subordinated debt	370,565		3,946		4.26		369,958		3,946		4.27
Total borrowings	1,296,994		14,228		4.35		1,146,933		7,972		2.76
Total interest-bearing liabilities	9,332,617		77,330		3.29		7,892,230		17,462		0.88
Noninterest-bearing demand deposits	3,041,101						3,995,702
Other liabilities	174,071						147,236
Stockholders' equity	1,538,553						1,486,427
Total liabilities and stockholders' equity	$	14,086,342					$	13,521,595
Tax-equivalent net interest income and spread			$	86,149	1.54	%			$	113,911	3.19	%
Less: tax-equivalent adjustment			1,068						951
Net interest income			$	85,081					$	112,960
Interest income/earning assets					4.83	%					4.07	%
Interest expense/earning assets					2.28						0.54
Net interest margin					2.55	%					3.53	%

(1)Tax-equivalent income has been adjusted using the combined marginal federal and state rate of 25.37% and 25.47% for 2023 and 2022, respectively. The annualized taxable-equivalent adjustments utilized in the above table to compute yields aggregated to $1.1 million and $1.0 million in 2023 and 2022, 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

	Nine Months Ended September 30,
	2023						2022
(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	$	5,136,059	$	177,067	4.61	%	$	4,546,440	$	138,245	4.07	%
Commercial owner-occupied real estate loans	1,770,812		61,038		4.61		1,722,522		58,126		4.51
Commercial AD&C loans	1,044,907		61,005		7.81		1,104,901		37,821		4.58
Commercial business loans	1,442,858		68,258		6.33		1,344,608		49,370		4.91
Total commercial loans	9,394,636		367,368		5.23		8,718,471		283,562		4.35
Residential mortgage loans	1,356,530		35,925		3.53		1,071,634		26,632		3.31
Residential construction loans	202,856		5,302		3.49		217,978		5,112		3.14
Consumer loans	422,861		24,403		7.72		422,941		13,112		4.14
Total residential and consumer loans	1,982,247		65,630		4.42		1,712,553		44,856		3.50
Total loans (2)	11,376,883		432,998		5.09		10,431,024		328,418		4.21
Loans held for sale	13,192		697		7.04		15,174		504		4.43
Taxable securities	1,275,407		20,538		2.15		1,204,240		14,472		1.60
Tax-advantaged securities	360,348		6,727		2.49		475,463		8,533		2.39
Total investment securities (3)	1,635,755		27,265		2.22		1,679,703		23,005		1.83
Interest-bearing deposits with banks	368,829		13,979		5.07		202,882		1,245		0.82
Federal funds sold	433		13		4.00		581		4		0.91
Total interest-earning assets	13,395,092		474,952		4.74		12,329,364		353,176		3.83
Less: allowance for credit losses - loans	(125,558)						(112,384)
Cash and due from banks	94,960						81,673
Premises and equipment, net	70,130						62,510
Other assets	609,301						672,093
Total assets	$	14,043,925					$	13,033,256
Liabilities and Stockholders' Equity
Interest-bearing demand deposits	$	1,413,876	$	10,465	0.99	%	$	1,477,956	$	1,513	0.14	%
Regular savings deposits	660,211		7,831		1.59		553,982		62		0.02
Money market savings deposits	3,067,810		68,976		3.01		3,334,534		7,403		0.30
Time deposits	2,658,225		67,943		3.42		1,418,740		6,600		0.62
Total interest-bearing deposits	7,800,122		155,215		2.66		6,785,212		15,578		0.31
Repurchase agreements	62,126		561		1.21		119,554		104		0.12
Federal funds purchased and Federal Reserve Bank borrowings	264,580		9,816		4.96		85,983		1,128		1.75
Advances from FHLB	637,015		21,623		4.54		174,493		3,066		2.35
Subordinated debt	370,412		11,839		4.26		315,065		10,130		4.29
Total borrowings	1,334,133		43,839		4.39		695,095		14,428		2.78
Total interest-bearing liabilities	9,134,255		199,054		2.91		7,480,307		30,006		0.54
Noninterest-bearing demand deposits	3,218,226						3,919,600
Other liabilities	169,291						146,429
Stockholders' equity	1,522,153						1,486,920
Total liabilities and stockholders' equity	$	14,043,925					$	13,033,256
Tax-equivalent net interest income and spread			$	275,898	1.83	%			$	323,170	3.29	%
Less: tax-equivalent adjustment			3,044						2,809
Net interest income			$	272,854					$	320,361
Interest income/earning assets					4.74	%					3.83	%
Interest expense/earning assets					1.99						0.33
Net interest margin					2.75	%					3.50	%

(1)Tax-equivalent income has been adjusted using the combined marginal federal and state rate of 25.37% and 25.47% for 2023 and 2022, respectively. The annualized taxable-equivalent adjustments utilized in the above table to compute yields aggregated to $3.0 million and $2.8 million in 2023 and 2022, respectively.

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

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