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PENSION, PROFIT SHARING, AND OTHER EMPLOYEE BENEFIT PLANS
 12 Months Ended
Dec. 31, 2024
Retirement Benefits [Abstract]  
PENSION, PROFIT SHARING, AND OTHER EMPLOYEE BENEFIT PLANS PENSION, PROFIT SHARING, AND OTHER EMPLOYEE BENEFIT PLANS
Defined Benefit Pension Plan

Prior to September 30, 2023, the Company maintained a qualified noncontributory, defined benefit pension plan (the “Plan”).

On March 30, 2022, the Board of Directors approved the termination of the Pension Plan to be effective of June 30, 2022. The Company executed plan amendments regarding the Plan termination and received a determination letter from the Internal Revenue Service (“IRS”) as to the tax-qualified status of the Plan at the time of termination. The Company also filed appropriate notices and documents related to the Plan’s termination and wind-down with the Pension Benefit Guaranty Corporation (“PBGC”).

Plan participants made elections for lump-sum distributions or annuity benefits. Both lump-sum distributions and transfer of annuity benefits to a highly-rated insurance company were completed in August 2023. In order to fully fund the Plan, the Company made a $1.3 million cash contribution. As a result of the pension termination, the Company incurred a one-time settlement expense of $8.2 million, which was recognized in salaries and employee benefits expense.
The Pension Plan’s funded status at December 31 is as follows:

(In thousands)20242023
Reconciliation of Projected Benefit Obligation:
Projected obligation at January 1$— $35,539 
Interest cost— 1,021 
Actuarial (gain)/ loss— (1,726)
Benefit payments— (1,102)
Increase/ (decrease) related to change in assumptions— — 
Annuity Purchase— (33,732)
Projected obligation at December 31— — 
Reconciliation of Fair Value of Plan Assets:
Fair value of plan assets at January 1— 32,287 
Actual return on plan assets— 1,197 
Employer contributions— 1,350 
Benefit payments— (1,102)
Annuity Purchase— (33,732)
Fair value of plan assets at December 31$— $— 
Funded status at December 31$— $— 
Accumulated benefit obligation at December 31$— $— 
Unrecognized net actuarial loss$— $— 
Net periodic pension cost not yet recognized$— $— 

Weighted average assumptions used to determine benefit obligations at December 31 are presented in the following table:

202420232022
Discount rateN/AN/A5.10%
Rate of compensation increaseN/AN/AN/A

The components of net periodic benefit cost for the years ended December 31 are presented in the following table:

(In thousands)202420232022
Interest cost on projected benefit obligation$— $1,021 $1,301 
Expected return on plan assets— (870)(1,410)
Recognized net actuarial loss— 526 783 
Settlement charge— 8,157 — 
Other— 113 — 
Net periodic benefit cost$— $8,947 $674 

Components of the net periodic benefit cost are recorded in salaries and employee benefits expense in the Consolidated Statement of Income.
Weighted average assumptions used to determine net periodic benefit cost for years ended December 31 are presented in the following table:

202420232022
Discount rateN/A5.10%2.80%
Expected return on plan assetsN/A5.25%3.75%
Rate of compensation increaseN/AN/AN/A

Sandy Spring Bank 401(k) Plan
The Sandy Spring Bank 401(k) Plan (“the 401(k)”) is voluntary and covers all eligible employees after 90 days of service. The 401(k) provides that employees contributing to the 401(k) receive a matching contribution of 100% of the first 4% of compensation and 50% of the next 2% of compensation subject to employee contribution limitations. The Company matching contribution vests immediately. The 401(k) permits employees to purchase shares of the Company’s common stock with their 401(k) contributions, Company match, and other contributions under the 401(k). The Company’s matching contribution to the 401(k), which is included in salaries and employee benefits in non-interest expenses in the Consolidated Statements of Income, totaled $6.0 million, $6.3 million, and $5.9 million in 2024, 2023 and 2022, respectively.

Deferred Compensation Plans
The Executive Incentive Retirement Plan ("Executive Plan") is a non-qualified deferred compensation plan that provides for contributions to be made to the participants’ plan accounts based on the attainment of a level of financial performance determined annually by the board of directors. The Company ceased making contributions to the Executive Plan after adoption of the Non-Qualified Deferred Compensation Plan (“NQDC Plan”) in late 2021. The NQDC Plan provides participants with the option to defer receipt of a portion of their base salary and annual cash incentives. Participant contributions are fully vested at all times. At its sole discretion, the Company may credit participant accounts with company contributions. In 2024, executive officers were selected by the board of directors for contributions to be made to their plan accounts based on the attainment of a level of financial performance compared to a selected group of peer banks. Benefit costs related to the Executive Plan and NQDC Plan included in salaries and employee benefits in non-interest expenses in the Consolidated Statements of Income for 2024, 2023 and 2022 were $0.4 million, $0.4 million, and $0.7 million, respectively.