false000082441000008244102025-01-282025-01-28

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
 
FORM 8-K
CURRENT REPORT
 
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported): January 28, 2025
 
SANDY SPRING BANCORP, INC.
(Exact name of registrant as specified in its charter)
  
Maryland000-1906552-1532952
(State or other jurisdiction
of incorporation)
(Commission File Number)(IRS Employer
Identification No.)
 
17801 Georgia Avenue, Olney, Maryland 20832
(Address of principal executive offices, including zip code)
 
Registrant’s telephone number, including area code: (301) 774-6400
 
Not Applicable
(Former name or former address, if changed since last report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
¨Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
¨Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
¨Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
¨Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
Securities registered pursuant to Section 12(b) of the Act:
 
Title of each classTrading Symbol(s)Name of exchange on which registered
Common Stock, par value $1.00 per shareSASRThe NASDAQ Stock Market LLC
 
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company ¨
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨




Item 2.02Results of Operations and Financial Condition
 
On January 28, 2025, Sandy Spring Bancorp, Inc. (the “Company”) issued a news release announcing its results of operations and financial condition for the quarter ended December 31, 2024. A copy of the news release is included as Exhibit 99.1 to this report.

 
Item 9.01Financial Statements and Exhibits
 
Exhibits.
 
Exhibit No.Description
 
Press release dated January 28, 2025
104Cover Page Interactive Data File (embedded within the Inline XBRL document)




SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 SANDY SPRING BANCORP, INC.
 (Registrant)
 
Date: January 28, 2025
By:/s/ Daniel J. Schrider
  Daniel J. Schrider
  President and Chief Executive Officer


Exhibit 99.1
tm2033877d1_ex99-1img01.jpg
NEWS RELEASE

FOR IMMEDIATE RELEASE

SANDY SPRING BANCORP ANNOUNCES FOURTH QUARTER RESULTS

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

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

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

Fourth Quarter Highlights

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

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

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

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

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

The net interest margin was 2.53% for the fourth quarter of 2024 compared to 2.44% for the third quarter of 2024 and 2.45% for the fourth quarter of 2023. Compared to the linked quarter, the rate paid on interest-bearing liabilities



decreased 23 basis points, driven by a 26 basis point decline in the rate on interest-bearing deposits, while the yield on interest-earning assets declined by six basis points. The decline in the rate paid on interest-bearing deposits was attributable to a 50 basis point reduction in the federal funds rate during the current quarter and the associated actions taken by management to re-price the Company's funding base.

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

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

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

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

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

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

Balance Sheet and Credit Quality

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

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



total deposits as of December 31, 2024 compared to September 30, 2024, reflecting continued strength and stability of the core deposit base. Total uninsured deposits at December 31, 2024 were approximately 37% of total deposits.

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

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

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

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

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

Income Statement Review

Quarterly Results

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

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

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

The total provision for credit losses was $4.5 million for the fourth quarter of 2024 compared to $6.3 million for the previous quarter and a credit of $3.4 million for the fourth quarter of 2023. The provision for credit losses directly attributable to the



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

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

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

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

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

Explanation of Non-GAAP Financial Measures

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

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

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

About Sandy Spring Bancorp, Inc.

Sandy Spring Bancorp, Inc., headquartered in Olney, Maryland, is the holding company for Sandy Spring Bank, a premier community bank in the Greater Washington, D.C. region. With over 50 locations, the bank offers a broad range of commercial and retail banking, mortgage, private banking, and trust services throughout Maryland, Virginia, and Washington, D.C. Through



its subsidiaries, Rembert Pendleton Jackson and West Financial Services, Inc., Sandy Spring Bank also offers a comprehensive menu of wealth management services.

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

For additional information or questions, please contact:
Daniel J. Schrider, Chair, President & Chief Executive Officer, or
Charles S. Cullum, E.V.P. & Chief Financial Officer
Sandy Spring Bancorp
17801 Georgia Avenue
Olney, Maryland 20832
1-800-399-5919
Email: DSchrider@sandyspringbank.com
CCullum@sandyspringbank.com

Website: www.sandyspringbank.com
Media Contact:
Jennifer E. Schell, Division Executive, Marketing & Corporate Communications
301-774-6400 x8331
jschell@sandyspringbank.com

Forward-Looking Statements

Sandy Spring Bancorp’s forward-looking statements are subject to significant risks and uncertainties that may cause actual results to differ materially from those in such statements. These risks and uncertainties include, but are not limited to, the risks identified in our quarterly and annual reports and the following: changes in general business and economic conditions nationally or in the markets that we serve; changes in consumer and business confidence, investor sentiment, or consumer spending or savings behavior; changes in the level of inflation; changes in the demand for loans, deposits and other financial services that we provide; the possibility that future credit losses may be higher than currently expected; the impact of the interest rate environment on our business, financial condition and results of operations; the impact of compliance with changes in laws, regulations and regulatory interpretations, including changes in income taxes; changes in credit ratings assigned to us or our subsidiaries; competitive pressures among financial services companies; the ability to attract, develop and retain qualified employees; our ability to maintain the security of our data processing and information technology systems; the impact of changes in accounting policies, including the introduction of new accounting standards; the impact of judicial or regulatory proceedings; the impact of fiscal and governmental policies of the United States federal government; the impact of health emergencies, epidemics or pandemics; the effects of climate change; and the impact of natural disasters, extreme weather events, military conflict, terrorism or other geopolitical events; the possibility that the Company’s pending merger with AUB does not close when expected or at all because required regulatory or other approvals or conditions to closing are not received or satisfied on a timely basis or at all (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the merger); the risk that the benefits from the merger may not be fully realized or may take longer to realize than expected; and the risk of disruption to the Company’s business as a result of the pendency of the merger;. Sandy Spring Bancorp provides greater detail regarding some of these factors in its Form 10-K for the year ended December 31, 2023 and its Form 10-Q for the quarter ended September 30, 2024, including in the Risk Factors section of those reports, and in its other SEC reports. Sandy Spring Bancorp’s forward-looking statements may also be subject to other risks and uncertainties, including those that it may discuss elsewhere in this news release or in its filings with the SEC, accessible on the SEC’s Web site at www.sec.gov.





Sandy Spring Bancorp, Inc. and Subsidiaries
FINANCIAL HIGHLIGHTS - UNAUDITED

Three Months Ended
December 31,
%
Change
Year Ended
December 31,
%
Change
(Dollars in thousands, except per share data)
2024202320242023
Results of operations:
Net interest income$86,086$81,696%$327,126$354,550(8)%
Provision/ (credit) for credit losses4,468(3,445)N/M14,192(17,561)N/M
Non-interest income21,64616,56031 79,31567,07818 
Non-interest expense134,24167,142100 343,288275,05425 
Income/ (loss) before income tax expense(30,977)34,559N/M48,961164,135(70)
Net income/ (loss)(39,453)26,100N/M19,935122,844(84)
Net income/ (loss) attributable to common shareholders$(39,457)$26,066N/M$19,902$122,621(84)
Pre-tax pre-provision net income/ (loss) (1)
$(26,509)$31,114N/M$63,153$146,574(57)
Return on average assets(1.09)%0.73 %0.14 %0.87 %
Return on average common equity(9.70)%6.70 %1.25 %8.04 %
Return on average tangible common equity (1)
5.46 %9.26 %6.73 %11.06 %
Net interest margin2.53 %2.45 %2.46 %2.67 %
Efficiency ratio - GAAP basis (2)
124.61 %68.33 %84.46 %65.24 %
Efficiency ratio - Non-GAAP basis (2)
67.16 %66.16 %67.07 %60.99 %
Per share data:
Basic net income/ (loss) per common share$(0.87)$0.58N/M$0.44$2.74(84)%
Diluted net income/ (loss) per common share$(0.87)$0.58N/M$0.44$2.73(84)
Weighted average diluted common shares45,133,83445,009,574— 45,227,48744,947,263
Dividends declared per share$0.34$0.34— $1.36$1.36— 
Book value per common share$34.51$35.36(2)$34.51$35.36(2)
Tangible book value per common share (1)
$26.99$26.64$26.99$26.64
Outstanding common shares45,140,41744,913,56145,140,41744,913,561
Financial condition at period-end:
Investment securities$1,418,244$1,414,453— %$1,418,244$1,414,453— %
Loans11,537,96611,366,98911,537,96611,366,989
Assets14,127,48014,028,17214,127,48014,028,172
Deposits11,745,66510,996,53811,745,66510,996,538
Stockholders' equity1,558,0111,588,142(2)1,558,0111,588,142(2)
Capital ratios:
Tier 1 leverage (3)
9.39 %9.51 %9.39 %9.51 %
Common equity tier 1 capital to risk-weighted assets (3)
11.36 %10.90 %11.36 %10.90 %
Tier 1 capital to risk-weighted assets (3)
11.36 %10.90 %11.36 %10.90 %
Total regulatory capital to risk-weighted assets (3)
15.38 %14.92 %15.38 %14.92 %
Tangible common equity to tangible assets (4)
8.84 %8.77 %8.84 %8.77 %
Average equity to average assets11.26 %10.97 %11.31 %10.87 %
Credit quality ratios:
Allowance for credit losses to loans1.16 %1.06 %1.16 %1.06 %
Non-performing loans to total loans1.03 %0.81 %1.03 %0.81 %
Non-performing assets to total assets0.87 %0.65 %0.87 %0.65 %
Allowance for credit losses to non-performing loans112.59 %131.59 %112.59 %131.59 %
Annualized net charge-offs/ (recoveries) to average loans (5)
0.06 %— %0.03 %0.01 %

N/M - not meaningful
(1)Represents a non-GAAP measure.
(2)The efficiency ratio - GAAP basis is non-interest expense divided by net interest income plus non-interest income from the Condensed Consolidated Statements of Income. The traditional efficiency ratio - Non-GAAP basis excludes goodwill impairment loss, merger and acquisition expense, intangible asset amortization, pension settlement expense, severance expense and contingent payment expense from non-interest expense; and investment securities gains/ (losses) from non-interest income; and adds the tax-equivalent adjustment to net interest income. See the Reconciliation Table included with these Financial Highlights.
(3)Estimated ratio at December 31, 2024.
(4)The tangible common equity to tangible assets ratio is a non-GAAP ratio that divides assets excluding goodwill and other intangible assets into stockholders' equity after deducting goodwill and other intangible assets. See the Reconciliation Table included with these Financial Highlights.
(5)Calculation utilizes average loans, excluding residential mortgage loans held-for-sale.



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

Three Months Ended
December 31,
Year Ended
December 31,
(Dollars in thousands)2024202320242023
Core earnings (non-GAAP):
Net income/ (loss) (GAAP)$(39,453)$26,100$19,935$122,844
Plus/ (less) non-GAAP adjustments:
Merger, acquisition and disposal expense(2)
4,1644,164
Amortization of intangible assets (net of tax)(1)
1,9371,0476,8013,898
Goodwill impairment loss(2)
54,39154,391
Severance expense (net of tax)(1)
1,445
Pension settlement expense (net of tax)(1)
6,088
Investment securities gains/ losses
Contingent payment expense (net of tax)(1)
27
Core earnings (Non-GAAP)$21,039$27,147$85,291$134,302
Core earnings per diluted common share (non-GAAP):
Weighted average common shares outstanding - diluted (GAAP)45,133,83445,009,57445,227,48744,947,263
Earnings/ (loss) per diluted common share (GAAP)$(0.87)$0.58$0.44$2.73
Core earnings per diluted common share (non-GAAP)$0.47$0.60$1.89$2.99
Core return on average assets (non-GAAP):
Average assets (GAAP)$14,362,321$14,090,423$14,129,795$14,055,645
Return on average assets (GAAP)
(1.09)%0.73 %0.14 %0.87 %
Core return on average assets (non-GAAP)0.58 %0.76 %0.60 %0.96 %
Return/ Core return on average tangible common equity (non-GAAP):
Net Income/ (loss) (GAAP)$(39,453)$26,100$19,935$122,844
Plus: Amortization of intangible assets (net of tax)(1)
1,9371,0476,8013,898
Plus: Goodwill impairment loss(2)
54,39154,391
Net income adjusted (non-GAAP)$16,875$27,147$81,127$126,742
Average total stockholders' equity (GAAP)$1,617,633$1,546,312$1,597,456$1,528,242
Average goodwill(356,341)(363,436)(361,653)(363,436)
Average other intangible assets, net(30,885)(20,162)(30,178)(18,596)
Average tangible common equity (non-GAAP)$1,230,407$1,162,714$1,205,625$1,146,210
Return on average tangible common equity (non-GAAP)
5.46 %9.26 %6.73 %11.06 %
Core return on average tangible common equity (non-GAAP)6.80 %9.26 %7.07 %11.72 %
(1) Tax adjustments have been determined using the combined marginal federal and state rate of 25.48% and 25.37% for 2024 and 2023, respectively.
(2) Adjustment is not tax-effected as it represents a tax nondeductible item.



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

Three Months Ended
December 31,
Year Ended
December 31,
(Dollars in thousands)2024202320242023
Pre-tax pre-provision net income:
Net income/ (loss) (GAAP)$(39,453)$26,100$19,935$122,844
Plus/ (less) non-GAAP adjustments:
Income tax expense8,4768,45929,02641,291
Provision/ (credit) for credit losses4,468(3,445)14,192(17,561)
Pre-tax pre-provision net income/ (loss) (non-GAAP)$(26,509)$31,114$63,153$146,574
Efficiency ratio (GAAP):
Non-interest expense$134,241$67,142$343,288$275,054
Net interest income plus non-interest income$107,732$98,256$406,441$421,628
Efficiency ratio (GAAP)124.61%68.33 %84.46 %65.24 %
Efficiency ratio (Non-GAAP):
Non-interest expense$134,241$67,142$343,288$275,054
Less non-GAAP adjustments:
Amortization of intangible assets2,5991,4039,1265,223
Merger, acquisition and disposal expense4,1644,164
Goodwill impairment loss54,39154,391
Severance expense1,939
Pension settlement expense8,157
Contingent payment expense36
Non-interest expense - as adjusted$73,087$65,739$275,607$259,699
Net interest income plus non-interest income
$107,732$98,256$406,441$421,628
Plus non-GAAP adjustment:
Tax-equivalent income1,1001,1134,4594,157
Less/ (plus) non-GAAP adjustment:
Investment securities gains/ (losses)
Net interest income plus non-interest income - as adjusted$108,832$99,369$410,900$425,785
Efficiency ratio (Non-GAAP)
67.16%66.16 %67.07 %60.99 %
Tangible common equity ratio:
Total stockholders' equity$1,558,011$1,588,142$1,558,011$1,588,142
Goodwill(309,045)(363,436)(309,045)(363,436)
Other intangible assets, net(30,748)(28,301)(30,748)(28,301)
Tangible common equity$1,218,218$1,196,405$1,218,218$1,196,405
Total assets
$14,127,480$14,028,172$14,127,480$14,028,172
Goodwill(309,045)(363,436)(309,045)(363,436)
Other intangible assets, net(30,748)(28,301)(30,748)(28,301)
Tangible assets$13,787,687$13,636,435$13,787,687$13,636,435
Tangible common equity ratio
8.84%8.77 %8.84 %8.77 %
Outstanding common shares45,140,41744,913,56145,140,41744,913,561
Tangible book value per common share$26.99$26.64$26.99$26.64





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

(Dollars in thousands)December 31,
2024
December 31,
2023
Assets
Cash and due from banks$80,698 $82,257 
Federal funds sold 245 
Interest-bearing deposits with banks438,265 463,396 
Cash and cash equivalents518,963 545,898 
Residential mortgage loans held for sale (at fair value)22,757 10,836 
SBA loans held for sale715 — 
Investments held-to-maturity (fair values of $177,854 and $200,411 at December 31, 2024 and December 31, 2023, respectively)
215,747 236,165 
Investments available-for-sale (at fair value)1,140,783 1,102,681 
Other investments, at cost61,714 75,607 
Total loans11,537,966 11,366,989 
Less: allowance for credit losses - loans(134,401)(120,865)
Net loans11,403,565 11,246,124 
Premises and equipment, net55,998 59,490 
Other real estate owned3,265 — 
Accrued interest receivable45,627 46,583 
Goodwill309,045 363,436 
Other intangible assets, net30,748 28,301 
Other assets318,553 313,051 
Total assets$14,127,480 $14,028,172 
Liabilities
Noninterest-bearing deposits
$2,804,930 $2,914,161 
Interest-bearing deposits8,940,735 8,082,377 
Total deposits11,745,665 10,996,538 
Securities sold under retail repurchase agreements68,911 75,032 
Federal Reserve Bank borrowings 300,000 
Advances from FHLB250,000 550,000 
Subordinated debt371,400 370,803 
Total borrowings690,311 1,295,835 
Accrued interest payable and other liabilities133,493 147,657 
Total liabilities12,569,469 12,440,030 
Stockholders' equity
Common stock -- par value $1.00; shares authorized 100,000,000; shares issued and outstanding 45,140,417 and 44,913,561 at December 31, 2024 and December 31, 2023, respectively.
45,140 44,914 
Additional paid in capital748,905 742,243 
Retained earnings856,613 898,316 
Accumulated other comprehensive loss(92,647)(97,331)
Total stockholders' equity1,558,011 1,588,142 
Total liabilities and stockholders' equity$14,127,480 $14,028,172 



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

Three Months Ended
December 31,
Year Ended
December 31,
(Dollars in thousands, except per share data)2024202320242023
Interest income:
Interest and fees on loans$153,262 $148,655 $609,571 $579,960 
Interest on mortgage loans held for sale249 199 1,050 896 
Interest on SBA loans held for sale21 — 23 — 
Interest on deposits with banks7,997 8,456 25,398 22,435 
Interest and dividend income on investment securities:
Taxable7,821 6,454 29,140 26,992 
Tax-advantaged1,697 1,848 7,082 7,224 
Interest on federal funds sold 8 17 
Total interest income171,047 165,616 672,272 637,524 
Interest expense:
Interest on deposits76,111 69,813 303,173 225,028 
Interest on retail repurchase agreements and federal funds purchased
369 4,075 5,259 14,452 
Interest on advances from FHLB3,865 6,086 20,259 27,709 
Interest on subordinated debt4,616 3,946 16,455 15,785 
Total interest expense84,961 83,920 345,146 282,974 
Net interest income86,086 81,696 327,126 354,550 
Provision/ (credit) for credit losses4,468 (3,445)14,192 (17,561)
Net interest income after provision/ (credit) for credit losses81,618 85,141 312,934 372,111 
Non-interest income:
Service charges on deposit accounts2,998 2,749 11,763 10,447 
Mortgage banking activities1,091 792 5,615 5,536 
Wealth management income10,920 9,219 42,071 36,633 
Income from bank owned life insurance3,213 1,207 7,496 4,210 
Bank card fees457 454 1,750 1,769 
Other income2,967 2,139 10,620 8,483 
Total non-interest income21,646 16,560 79,315 67,078 
Non-interest expense:
Salaries and employee benefits44,309 35,482 159,858 160,192 
Occupancy expense of premises4,727 4,558 19,005 18,778 
Equipment expenses4,252 3,987 15,924 15,675 
Marketing2,013 1,242 5,363 5,103 
Outside data services3,228 3,000 12,642 11,186 
FDIC insurance2,761 2,615 11,396 9,461 
Amortization of intangible assets2,599 1,403 9,126 5,223 
Merger, acquisition and disposal expense4,164 — 4,164 — 
Professional fees and services4,805 5,628 21,208 17,982 
Goodwill impairment loss54,391 — 54,391 — 
Other expenses6,992 9,227 30,211 31,454 
Total non-interest expense134,241 67,142 343,288 275,054 
Income/ (loss) before income tax expense(30,977)34,559 48,961 164,135 
Income tax expense8,476 8,459 29,026 41,291 
Net income/ (loss)$(39,453)$26,100 $19,935 $122,844 

Net income per share amounts:
Basic net income/ (loss) per common share$(0.87)$0.58 $0.44 $2.74 
Diluted net income/ (loss) per common share$(0.87)$0.58 $0.44 $2.73 
Dividends declared per share$0.34 $0.34 $1.36 $1.36 



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

20242023
(Dollars in thousands, except per share data)Q4Q3Q2Q1Q4Q3Q2Q1
Profitability for the quarter:
Tax-equivalent interest income
$172,147$171,219$166,252$167,113$166,729$163,479$159,156$152,317
Interest expense    
84,96188,68684,82886,67183,92077,33067,67954,045
Tax-equivalent net interest income87,18682,53381,42480,44282,80986,14991,47798,272
Tax-equivalent adjustment
1,1001,1211,1391,0991,1131,0681,006970
Provision/ (credit) for credit losses4,4686,3161,0202,388(3,445)2,3655,055(21,536)
Non-interest income
21,64619,71519,58718,36716,56017,39117,17615,951
Non-interest expense
134,24172,93768,10468,00667,14272,47169,13666,305
Income/ (loss) before income tax expense(30,977)21,87430,74827,31634,55927,63633,45668,484
Income tax expense8,4765,6657,9416,9448,4596,8908,71117,231
Net income/ (loss)$(39,453)$16,209$22,807$20,372$26,100$20,746$24,745$51,253
GAAP financial performance:
Return on average assets(1.09)%0.46 %0.66 %0.58 %0.73 %0.58 %0.70 %1.49 %
Return on average common equity(9.70)%4.01 %5.81 %5.17 %6.70 %5.35 %6.46 %13.93 %
Return on average tangible common equity5.46 %5.88 %8.27 %7.39 %9.26 %7.42 %8.93 %19.10 %
Net interest margin2.53 %2.44 %2.46 %2.41 %2.45 %2.55 %2.73 %2.99 %
Efficiency ratio - GAAP basis124.61 %72.12 %68.19 %69.60 %68.33 %70.72 %64.22 %58.55 %
Non-GAAP financial performance:
Pre-tax pre-provision net income/ (loss)$(26,509)$28,190$31,768$29,704$31,114$30,001$38,511$46,948
Core after-tax earnings$21,039$17,936$24,400$21,916$27,147$27,766$27,136$52,253
Core return on average assets0.58 %0.50 %0.70 %0.63 %0.76 %0.78 %0.77 %1.52 %
Core return on average common equity5.17 %4.44 %6.21 %5.56 %6.97 %7.16 %7.09 %14.20 %
Core return on average tangible common equity6.80 %5.88 %8.27 %7.39 %9.26 %9.51 %9.43 %19.11 %
Core earnings per diluted common share$0.47$0.40$0.54$0.49$0.60$0.62$0.60$1.16
Efficiency ratio - Non-GAAP basis67.16 %69.06 %65.31 %66.73 %66.16 %60.91 %60.68 %56.87 %
Per share data:
Net income/ (loss) attributable to common shareholders$(39,457)$16,205$22,800$20,346$26,066$20,719$24,712$51,084
Basic net income/ (loss) per common share$(0.87)$0.36$0.51$0.45$0.58$0.46$0.55$1.14
Diluted net income/ (loss) per common share$(0.87)$0.36$0.51$0.45$0.58$0.46$0.55$1.14
Weighted average diluted common shares45,133,83445,242,92045,145,21445,086,47145,009,57444,960,45544,888,75944,872,582
Dividends declared per share$0.34$0.34$0.34$0.34$0.34$0.34$0.34$0.34
Non-interest income:
Service charges on deposit accounts2,9983,0092,9392,8172,7492,7042,6062,388
Mortgage banking activities1,0911,5291,6211,3747921,6821,8171,245
Wealth management income10,92010,73810,4559,9589,2199,3919,0318,992
Income from bank owned life insurance3,2131,3071,8161,1601,2078451,251907
Bank card fees457435445413454450447418
Other income2,9672,6972,3112,6452,1392,3192,0242,001
Total non-interest income$21,646$19,715$19,587$18,367$16,560$17,391$17,176$15,951
Non-interest expense:
Salaries and employee benefits$44,309$41,030$37,821$36,698$35,482$44,853$40,931$38,926
Occupancy expense of premises4,7274,6574,8054,8164,5584,6094,7644,847
Equipment expenses4,2523,8413,8683,9633,9873,8113,7604,117
Marketing2,0131,3201,2887421,2427291,5891,543
Outside data services3,2283,0253,2863,1033,0002,8192,8532,514
FDIC insurance2,7612,7732,9512,9112,6152,3332,3752,138
Amortization of intangible assets2,5992,3232,1352,0691,4031,2451,2691,306
Merger, acquisition and disposal expense4,164
Professional fees and services4,8056,5774,9464,8805,6284,5094,1613,684
Goodwill impairment loss54,391
Other expenses6,9927,3917,0048,8249,2277,5637,4347,230
Total non-interest expense$134,241$72,937$68,104$68,006$67,142$72,471$69,136$66,305




Sandy Spring Bancorp, Inc. and Subsidiaries
HISTORICAL TRENDS - QUARTERLY FINANCIAL DATA - UNAUDITED
20242023
(Dollars in thousands, except per share data)Q4Q3Q2Q1Q4Q3Q2Q1
Balance sheets at quarter end:
Commercial investor real estate loans$4,779,593$4,868,467$4,933,329$4,997,879$5,104,425$5,137,694$5,131,210$5,167,456
Commercial owner-occupied real estate loans1,748,7721,737,3271,747,7081,741,1131,755,2351,760,3841,770,1351,769,928
Commercial AD&C loans1,327,2921,255,6091,184,2961,090,259988,967938,6731,045,7421,046,665
Commercial business loans1,653,1351,620,9261,601,5101,509,5921,504,8801,454,7091,423,6141,437,478
Residential mortgage loans1,537,5891,529,7861,521,8901,511,6241,474,5211,432,0511,385,7431,328,524
Residential construction loans49,02853,63978,02797,685121,419160,345190,690223,456
Consumer loans442,557426,167417,161416,132417,542416,436422,505421,734
Total loans11,537,96611,491,92111,483,92111,364,28411,366,98911,300,29211,369,63911,395,241
Allowance for credit losses - loans(134,401)(131,428)(125,863)(123,096)(120,865)(123,360)(120,287)(117,613)
Residential mortgage loans held for sale22,75721,48918,96116,62710,83619,23521,47616,262
SBA loans held for sale715425
Investment securities1,418,2441,440,4881,401,5111,405,4901,414,4531,392,0781,463,5541,528,336
Total assets14,127,48014,383,07314,008,34313,888,13314,028,17214,135,08513,994,54514,129,007
Noninterest-bearing demand deposits2,804,9302,903,0632,931,4052,817,9282,914,1613,013,9053,079,8963,228,678
Total deposits11,745,66511,737,69411,340,22811,227,20010,996,53811,151,01210,958,92211,075,991
Customer repurchase agreements68,91170,76775,03871,52975,03266,58174,51047,627
Total stockholders' equity1,558,0111,628,8371,599,0041,589,3641,588,1421,537,9141,539,0321,536,865
Quarterly average balance sheets:
Commercial investor real estate loans$4,825,594$4,874,003$4,964,406$5,057,334$5,125,028$5,125,459$5,146,632$5,136,204
Commercial owner-occupied real estate loans1,739,6861,741,6631,734,1061,746,0421,755,0481,769,7171,773,0391,769,680
Commercial AD&C loans1,300,9661,253,0351,133,5061,030,763960,646995,6821,057,2051,082,791
Commercial business loans1,606,6411,579,0011,551,7981,508,3361,433,0351,442,5181,441,4891,444,588
Residential mortgage loans1,535,9241,526,4451,518,7481,491,2771,451,6141,406,9291,353,8091,307,761
Residential construction loans47,78864,68486,638110,456142,325174,204211,590223,313
Consumer loans433,185421,003417,206417,539419,299421,189423,306424,122
Total loans11,489,78411,459,83411,406,40811,361,74711,286,99511,335,69811,407,07011,388,459
Residential mortgage loans held for sale13,76819,88914,4978,14210,13213,71417,4808,324
SBA loans held for sale59165
Investment securities1,542,4011,531,3781,538,6241,536,1271,544,1731,589,3421,639,3241,679,593
Interest-earning assets13,713,61813,474,69713,292,99513,411,81013,462,58313,444,11713,423,58913,316,165
Total assets14,362,32114,136,03713,956,26114,061,93514,090,42314,086,34214,094,65313,949,276
Noninterest-bearing demand deposits2,813,5452,783,9062,790,6202,730,2952,958,2543,041,1013,137,9713,480,433
Total deposits11,807,98311,483,52411,245,47611,086,14511,089,58711,076,72410,928,03811,049,991
Customer repurchase agreements65,25363,43662,16172,83666,62267,29858,38260,626
Total interest-bearing liabilities9,792,1349,600,9059,441,0159,583,0749,418,6669,332,6179,257,6528,806,720
Total stockholders' equity1,617,6331,607,3771,579,5821,584,9021,546,3121,538,5531,535,4651,491,929
Financial measures:
Average equity to average assets11.26 %11.37 %11.32 %11.27 %10.97 %10.92 %10.89 %10.70 %
Average investment securities to average earning assets11.25 %11.36 %11.57 %11.45 %11.47 %11.82 %12.21 %12.61 %
Average loans to average earning assets83.78 %85.05 %85.81 %84.71 %83.84 %84.32 %84.98 %85.52 %
Loans to assets81.67 %79.90 %81.98 %81.83 %81.03 %79.94 %81.24 %80.65 %
Loans to deposits98.23 %97.91 %101.27 %101.22 %103.37 %101.34 %103.75 %102.88 %
Assets under management$6,577,150$6,567,752$6,215,697$6,165,509$5,999,520$5,536,499$5,742,888$5,477,560
Capital measures:
Tier 1 leverage (1)
9.39 %9.59 %9.70 %9.56 %9.51 %9.50 %9.42 %9.44 %
Common equity tier 1 capital to risk-weighted assets (1)
11.36 %11.27 %11.28 %10.96 %10.90 %10.83 %10.65 %10.53 %
Tier 1 capital to risk-weighted assets (1)
11.36 %11.27 %11.28 %10.96 %10.90 %10.83 %10.65 %10.53 %
Total regulatory capital to risk-weighted assets (1)
15.38 %15.53 %15.49 %15.05 %14.92 %14.85 %14.60 %14.43 %
Book value per common share$34.51$36.10$35.45$35.37$35.36$34.26$34.31$34.37
Outstanding common shares
45,140,41745,125,07845,109,67144,940,14744,913,56144,895,15844,862,36944,712,497
(1) Estimated ratio at December 31, 2024.




Sandy Spring Bancorp, Inc. and Subsidiaries
LOAN PORTFOLIO QUALITY DETAIL - UNAUDITED
20242023
(Dollars in thousands)December 31,September 30,June 30,March 31,December 31,September 30,June 30,March 31,
Non-performing assets:
Loans 90 days past due:
Commercial real estate:
Commercial investor real estate$ $— $— $— $— $— $— $215 
Commercial owner-occupied real estate — — — — — — — 
Commercial AD&C — — — — — — — 
Commercial business  — — 20 20 415 29 3,002 
Residential real estate:
Residential mortgage 232 399 338 340 342 — 692 352 
Residential construction — — — — — — — 
Consumer — — — — — — — 
Total loans 90 days past due
232 399 338 360 362 415 721 3,569 
Non-accrual loans:
Commercial real estate:
Commercial investor real estate 58,071 57,578 55,498 55,579 58,658 20,108 20,381 15,451 
Commercial owner-occupied real estate7,008 9,639 9,403 4,394 4,640 4,744 4,846 4,949 
Commercial AD&C31,314 31,816 2,127 556 1,259 1,422 569 — 
Commercial business7,590 9,044 8,455 7,164 10,051 9,671 9,393 9,443 
Residential real estate:
Residential mortgage 10,939 11,996 12,228 11,835 12,332 10,766 10,153 8,935 
Residential construction521 539 539 542 443 449 — — 
Consumer3,697 4,258 4,400 4,011 4,102 4,187 3,396 4,900 
Total non-accrual loans119,140 124,870 92,650 84,081 91,485 51,347 48,738 43,678 
Total non-performing loans119,372 125,269 92,988 84,441 91,847 51,762 49,459 47,247 
Other real estate owned (OREO)3,265 3,265 2,700 2,700 — 261 611 645 
Total non-performing assets$122,637 $128,534 $95,688 $87,141 $91,847 $52,023 $50,070 $47,892 

For the Quarter Ended,
(Dollars in thousands)
December 31,
2024
September 30,
2024
June 30,
2024
March 31,
2024
December 31,
2023
zSeptember 30,
2023
June 30,
2023
March 31,
2023
Analysis of non-accrual loan activity:
Balance at beginning of period$124,870$92,650$84,081$91,485$51,347$48,738$43,678$34,782
Non-accrual balances transferred to OREO
(565)(2,700)
Non-accrual balances charged-off(1,698)(787)(1,550)(183)(2,049)(126)
Net payments or draws(5,065)(3,095)(1,427)(4,017)(7,619)(1,545)(1,654)(10,212)
Loans placed on non-accrual2,84736,66710,0381,49047,9204,9679,27619,714
Non-accrual loans brought current(1,814)(42)(627)(163)(630)(513)(480)
Balance at end of period$119,140$124,870$92,650$84,081$91,485$51,347$48,738$43,678
Analysis of allowance for credit losses - loans:
Balance at beginning of period$131,428$125,863$123,096$120,865$123,360$120,287$117,613$136,242
Provision/ (credit) for credit losses - loans4,6536,3102,9613,331(2,574)3,1714,454(18,945)
Less loans charged-off, net of recoveries:
Commercial real estate:
    Commercial investor real estate(3)397(3)(2)(3)(3)(14)(5)
Commercial owner-occupied real estate(30)(27)(27)(27)(27)(25)(27)(26)
Commercial AD&C(23)111(23)(283)
Commercial business 1,656250(28)1,550(105)15363(127)
Residential real estate:
Residential mortgage(7)(35)39(6)(6)(4)3521
Residential construction
Consumer8749236(132)621151,423(179)
Net charge-offs/ (recoveries)1,6807451941,100(79)981,780(316)
Balance at the end of period$134,401$131,428$125,863$123,096$120,865$123,360$120,287$117,613
Asset quality ratios:
Non-performing loans to total loans1.03 %1.09 %0.81 %0.74 %0.81 %0.46 %0.44 %0.41 %
Non-performing assets to total assets0.87 %0.89 %0.68 %0.63 %0.65 %0.37 %0.36 %0.34 %
Allowance for credit losses to total loans1.16 %1.14 %1.10 %1.08 %1.06 %1.09 %1.06 %1.03 %
Allowance for credit losses to non-performing loans112.59 %104.92 %135.35 %145.78 %131.59 %238.32 %243.21 %248.93 %
Annualized net charge-offs/ (recoveries) to average loans0.06 %0.03 %0.01 %0.04 %— %— %0.06 %(0.01)%




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

Three Months Ended December 31,
20242023
(Dollars in thousands and tax-equivalent)
Average
Balances
    Interest (1)
Annualized
Average
Yield/Rate
Average
Balances
    Interest (1)
Annualized
Average
Yield/Rate
Assets
Commercial investor real estate loans
$4,825,594 $57,898 4.77 %$5,125,028 $60,909 4.72 %
Commercial owner-occupied real estate loans1,739,686 21,497 4.92 1,755,048 21,011 4.75 
Commercial AD&C loans1,300,966 24,303 7.43 960,646 20,510 8.47 
Commercial business loans1,606,641 26,374 6.53 1,433,035 23,822 6.60 
Total commercial loans9,472,887 130,072 5.46 9,273,757 126,252 5.40 
Residential mortgage loans1,535,924 14,676 3.82 1,451,614 12,984 3.58 
Residential construction loans47,788 672 5.59 142,325 1,515 4.22 
Consumer loans433,185 8,496 7.80 419,299 8,543 8.08 
Total residential and consumer loans2,016,897 23,844 4.72 2,013,238 23,042 4.56 
Total loans (2)
11,489,784 153,916 5.33 11,286,995 149,294 5.25 
Residential mortgage loans held for sale13,768 249 7.24 10,132 199 7.86 
SBA loans held for sale591 21 14.50 — — — 
Taxable securities1,214,327 7,821 2.58 1,193,408 6,454 2.16 
Tax-advantaged securities328,074 2,143 2.61 350,765 2,322 2.64 
Total investment securities (3)
1,542,401 9,964 2.58 1,544,173 8,776 2.27 
Interest-bearing deposits with banks667,074 7,997 4.77 621,007 8,456 5.40 
Federal funds sold   276 5.43 
Total interest-earning assets13,713,618 172,147 5.00 13,462,583 166,729 4.92 
Less: allowance for credit losses - loans
(131,565)(121,851)
Cash and due from banks77,280 89,143 
Premises and equipment, net56,925 69,162 
Other assets646,063 591,386 
Total assets$14,362,321 $14,090,423 
Liabilities and Stockholders' Equity
Interest-bearing demand deposits
$1,519,835 $6,510 1.70 %$1,474,748 $5,612 1.51 %
Regular savings deposits1,763,353 13,768 3.11 1,153,610 9,715 3.34 
Money market savings deposits3,116,359 26,657 3.40 2,697,930 24,456 3.60 
Time deposits2,594,891 29,176 4.47 2,805,045 30,030 4.25 
Total interest-bearing deposits8,994,438 76,111 3.37 8,131,333 69,813 3.41 
Repurchase agreements65,253 327 2.00 66,622 354 2.11 
Federal funds purchased and Federal Reserve Bank borrowings3,525 42 4.69 300,000 3,721 4.92 
Advances from FHLB357,609 3,865 4.30 550,000 6,086 4.39 
Subordinated debt371,309 4,616 4.97 370,711 3,946 4.26 
Total borrowings797,696 8,850 4.41 1,287,333 14,107 4.35 
Total interest-bearing liabilities9,792,134 84,961 3.45 9,418,666 83,920 3.54 
Noninterest-bearing demand deposits
2,813,545 2,958,254 
Other liabilities139,009 167,191 
Stockholders' equity1,617,633 1,546,312 
Total liabilities and stockholders' equity$14,362,321 $14,090,423 
Tax-equivalent net interest income and spread
$87,186 1.55 %$82,809 1.38 %
Less: tax-equivalent adjustment1,100 1,113 
Net interest income$86,086 $81,696 
Interest income/earning assets
5.00 %4.92 %
Interest expense/earning assets2.47 2.47 
Net interest margin2.53 %2.45 %
(1)Tax-equivalent income has been adjusted using the combined marginal federal and state rate of 25.48% and 25.37% for 2024 and 2023, respectively. The annualized taxable-equivalent adjustments utilized in the above table to compute yields aggregated to $1.1 million and $1.1 million in 2024 and 2023, respectively.
(2)Non-accrual loans are included in the average balances.
(3)Available-for-sale investments are presented at amortized cost.



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

Year Ended December 31,
20242023
(Dollars in thousands and tax-equivalent)
Average
Balances
    Interest (1)
Annualized
Average
Yield/Rate
Average
Balances
    Interest (1)
Annualized
Average
Yield/Rate
Assets
Commercial investor real estate loans
$4,929,894 $234,402 4.75 %$5,133,279 $237,976 4.64 %
Commercial owner-occupied real estate loans1,740,376 84,587 4.86 1,766,839 82,049 4.64 
Commercial AD&C loans1,180,100 93,082 7.89 1,023,669 81,515 7.96 
Commercial business loans1,561,616 105,400 6.75 1,440,382 92,080 6.39 
Total commercial loans9,411,986 517,471 5.50 9,364,169 493,620 5.27 
Residential mortgage loans1,518,170 56,644 3.73 1,380,496 48,909 3.54 
Residential construction loans77,276 3,880 5.02 187,599 6,817 3.63 
Consumer loans422,260 34,189 8.10 421,963 32,946 7.81 
Total residential and consumer loans2,017,706 94,713 4.69 1,990,058 88,672 4.46 
Total loans (2)
11,429,692 612,184 5.36 11,354,227 582,292 5.13 
Residential mortgage loans held for sale14,089 1,050 7.45 12,421 896 7.21 
SBA loans held for sale165 23 14.17 — — — 
Taxable securities1,200,218 29,140 2.43 1,254,739 26,992 2.15 
Tax-advantaged securities336,913 8,928 2.65 357,933 9,049 2.53 
Total investment securities (3)
1,537,131 38,068 2.48 1,612,672 36,041 2.23 
Interest-bearing deposits with banks492,649 25,398 5.16 432,392 22,435 5.19 
Federal funds sold216 8 3.79 393 17 4.26 
Total interest-earning assets13,473,942 676,731 5.02 13,412,105 641,681 4.78 
Less: allowance for credit losses - loans
(125,131)(124,624)
Cash and due from banks81,761 93,494 
Premises and equipment, net58,571 69,886 
Other assets640,652 604,784 
Total assets$14,129,795 $14,055,645 
Liabilities and Stockholders' Equity
Interest-bearing demand deposits
$1,480,668 $25,368 1.71 %$1,429,219 $16,077 1.12 %
Regular savings deposits1,643,305 56,365 3.43 784,575 17,546 2.24 
Money market savings deposits2,914,712 105,847 3.63 2,974,580 93,432 3.14 
Time deposits2,588,713 115,593 4.47 2,695,232 97,973 3.64 
Total interest-bearing deposits8,627,398 303,173 3.51 7,883,606 225,028 2.85 
Repurchase agreements65,913 1,370 2.08 63,259 915 1.45 
Federal funds purchased and Federal Reserve Bank borrowings75,227 3,889 5.17 273,508 13,537 4.95 
Advances from FHLB465,164 20,259 4.36 615,082 27,709 4.50 
Subordinated debt371,085 16,455 4.43 370,487 15,785 4.26 
Total borrowings977,389 41,973 4.29 1,322,336 57,946 4.38 
Total interest-bearing liabilities9,604,787 345,146 3.59 9,205,942 282,974 3.07 
Noninterest-bearing demand deposits
2,779,696 3,152,699 
Other liabilities147,856 168,762 
Stockholders' equity1,597,456 1,528,242 
Total liabilities and stockholders' equity$14,129,795 $14,055,645 
Tax-equivalent net interest income and spread
$331,585 1.43 %$358,707 1.71 %
Less: tax-equivalent adjustment4,459 4,157 
Net interest income$327,126 $354,550 
Interest income/earning assets
5.02 %4.78 %
Interest expense/earning assets2.56 2.11 
Net interest margin2.46 %2.67 %
(1)Tax-equivalent income has been adjusted using the combined marginal federal and state rate of 25.48% and 25.37% for 2024 and 2023, respectively. The annualized taxable-equivalent adjustments utilized in the above table to compute yields aggregated to $4.5 million and $4.2 million in 2024 and 2023, respectively.
(2)Non-accrual loans are included in the average balances.
(3)Available-for-sale investments are presented at amortized cost.

v3.24.4
Cover
Jan. 28, 2025
Cover [Abstract]  
Document Type 8-K
Document Period End Date Jan. 28, 2025
Entity Registrant Name SANDY SPRING BANCORP, INC.
Entity Incorporation State Country Code MD
Entity File Number 000-19065
Entity Tax Identification Number 52-1532952
Entity Address Address Line1 17801 Georgia Avenue
Entity Address City Or Town Olney
Entity Address State Or Province MD
Entity Address Postal Zip Code 20832
City Area Code 301
Local Phone Number 774-6400
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Security 12b Title Common Stock, par value $1.00 per share
Trading Symbol SASR
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Amendment Flag false
Entity Central Index Key 0000824410

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