• Sandy Spring Bancorp Reports Quarterly Earnings of $54.8 Million

    来源: Nasdaq GlobeNewswire / 21 7月 2022 07:00:02   America/New_York

    OLNEY, Md., July 21, 2022 (GLOBE NEWSWIRE) -- Sandy Spring Bancorp, Inc. (Nasdaq-SASR), the parent company of Sandy Spring Bank, reported net income of $54.8 million ($1.21 per diluted common share) for the quarter ended June 30, 2022, compared to net income of $57.3 million ($1.19 per diluted common share) for the second quarter of 2021 and $43.9 million ($0.96 per diluted common share) for the first quarter of 2022.

    Current quarter core earnings were $44.2 million ($0.98 per diluted common share), compared to $58.4 million ($1.23 per diluted common share) for the quarter ended June 30, 2021 and $45.1 million ($0.99 per diluted common share) for the quarter ended March 31, 2022. Core earnings are determined by excluding the after-tax impact of merger, acquisition and disposal expense, the loss on FHLB redemptions, amortization of intangibles, gain on disposal of assets and investment securities gains. Core earnings for the current period when compared to the prior year quarter were reduced primarily as a result of the activity associated with provisioning for credit losses, a decline in mortgage banking income, lower other non-interest income from isolated events that occurred in 2021 and a decline in net interest income. The provision for credit losses for the current quarter was a charge of $3.0 million compared to a credit of $4.2 million for the second quarter of 2021 and a charge of $1.6 million for the first quarter of 2022.

    “We have sustained robust commercial loan production for three consecutive quarters. Our teams are focused and strategic, our products and services are competitive, and we are maximizing our in-market presence to win new relationships,” said Daniel J. Schrider, President and CEO of Sandy Spring Bank. “Despite the economic concerns in the marketplace, the businesses we bank continue to grow and our pipeline remains strong. We are committed to supporting local businesses of all sizes and helping the Greater Washington region thrive.”

    Second Quarter Highlights:

    • At June 30, 2022, total assets were $13.3 billion, a 3% increase compared to $12.9 billion at June 30, 2021. During the previous twelve months, liquidity generated by PPP loan forgiveness was utilized to fund the growth in the loan and investment securities portfolios. Excluding the PPP balances, total assets grew 10% year-over-year.

    • Total loans, excluding PPP loans, increased 17% to $10.8 billion at June 30, 2022 compared to $9.2 billion at June 30, 2021. Excluding PPP loans, total commercial loans grew by $1.3 billion or 17% during the previous twelve months. During this period, the Company generated new commercial gross loan production of $4.4 billion, of which $3.0 billion was funded, more than offsetting $1.6 billion in non-PPP commercial loan run-off. Funded commercial loan production increased 60% to $804.6 million during the second quarter of the current year compared to $502.5 million for the same quarter of the prior year. Total mortgage loans grew $249.7 million, primarily in conventional 1-4 family mortgage loans, during the same period.

    • Net interest income for the second quarter of 2022 declined $2.1 million or 2% compared to the second quarter of 2021. Excluding PPP interest and fees, net interest income increased $9.9 million or 10% for the current quarter compared to the prior year quarter driven by the growth of the commercial loan portfolio.

    • For the second quarter of 2022, the net interest margin was 3.49%, compared to 3.63% for the second quarter of 2021, and 3.49% for the first quarter of 2022. Excluding the amortization of the fair value marks derived from the previous acquisitions and interest and fees from PPP loans, the current quarter’s net interest margin was 3.45% compared to 3.49% for second quarter of 2021, and 3.41% for the first quarter of 2022.

    • The provision for credit losses was a charge of $3.0 million for the current quarter compared to the prior year quarter’s credit to the provision of $4.2 million. The provision for the current quarter is a reflection of the growth in the loan portfolio and an increase in the qualitative reserve to consider the potential impact of future recessionary pressures. These factors were partially offset by the benefit to the provision derived from continuing improvement in forecasted macroeconomic indicators in the quantitative model.

    • Non-interest income for the current quarter increased by 34% or $9.0 million compared to the prior year quarter as a result of the $16.7 million gain from the disposition of the Company's insurance business. Excluding the disposition gain, non-interest income declined 29% compared to the prior year quarter as a result of the $4.3 million decline in income from mortgage banking activities and the $3.4 million decline in other non-interest income compared to the second quarter of 2021.

    • Non-interest expense for the current quarter increased $2.0 million or 3% compared to the prior year quarter with a significant component of the increase consisting of $1.1 million in merger, acquisition and disposal expense. Other non-interest expense increased $1.4 million driven by the combination of various operating expenses.

    • Return on average assets (“ROA”) for the quarter ended June 30, 2022 was 1.69% and return on average tangible common equity (“ROTCE”) was 20.42% compared to 1.79% and 20.44%, respectively, for the second quarter of 2021. On a non-GAAP basis, the current quarter's core ROA was 1.37% and core ROTCE was 16.49% compared to core ROA of 1.83% and core ROTCE of 20.87% for the second quarter of 2021.

    • For the second quarter of 2022, the GAAP efficiency ratio was 46.03% compared to 46.89% for the second quarter of 2021, and 50.92% for the first quarter of 2022. The non-GAAP efficiency ratio for the second quarter of 2022 was 49.79% compared to 45.36% for the prior year quarter, and 49.34% for the first quarter of 2022.

    • During the quarter, the Company repurchased 625,710 shares of its common stock for $25.0 million at an average price of $39.93 per share. The repurchase plan that was authorized on March 30, 2022 permits the repurchase of up to $50.0 million in shares of common stock.

    Balance Sheet and Credit Quality

    Total assets grew 3% to $13.3 billion at June 30, 2022, as compared to $12.9 billion at June 30, 2021. During this period, total loans grew by 7% to $10.8 billion at June 30, 2022, compared to $10.1 billion at June 30, 2021. At June 30, 2022, excluding PPP loans, total assets grew 10% and total loans grew 17% compared to June 30, 2021. Total commercial loans, excluding PPP loan, grew by $1.3 billion or 17% during the past twelve months. During this period, the Company generated commercial gross loan production of $4.4 billion, of which $3.0 billion was funded, offsetting $1.6 billion in commercial loan run-off. During the second quarter of 2022, funded commercial loan production was $804.6 million, an increase of 60% compared to $502.5 million for the same quarter of the prior year. The growth in the commercial portfolio, excluding PPP loans, occurred in all commercial portfolios led by the $1.0 billion or 28% growth in the investor owned commercial portfolio. Year-over-year the total mortgage loan portfolio grew 22%, as a greater number of conventional 1-4 family mortgages were retained to grow the portfolio.

    During the past twelve months, deposits increased 1%. Noninterest-bearing deposits grew 3% reflecting the impact of the PPP forgiveness and growth in transaction relationships, while interest-bearing deposits remained essentially unchanged. During the period, time deposits decreased 9% and money market accounts decreased 4%, while savings and interest bearing demand categories experienced year-over-year growth of 15% and 12%, respectively.

    The tangible common equity ratio decreased to 8.45% of tangible assets at June 30, 2022, compared to 9.28% at June 30, 2021 as a result of the $132.3 million repurchase of common shares during the previous twelve months and the $88.9 million increase in the accumulated other comprehensive loss in the investment portfolio due to the impact of the rising rate environment on the value of securities coupled with the increase in tangible assets during the past year. At June 30, 2022, the Company had a total risk-based capital ratio of 16.07%, a common equity tier 1 risk-based capital ratio of 11.58%, a tier 1 risk-based capital ratio of 11.58%, and a tier 1 leverage ratio of 9.53%.

    Non-performing loans include non-accrual loans, accruing loans 90 days or more past due and restructured loans. At June 30, 2022, the level of non-performing loans to total loans was 0.40% compared to 0.93% at June 30, 2021, and 0.46% at March 31, 2022. At June 30, 2022, non-performing loans totaled $43.5 million, compared to $94.3 million at June 30, 2021, and $46.3 million at March 31, 2022. Loans placed on non-accrual during the current quarter amounted to $0.9 million compared to $1.5 million for the prior year quarter and $1.5 million for the first quarter of 2022.

    The company realized an insignificant amount of net recoveries for the second quarter of 2022, as compared to net charge-offs of $2.2 million for the second quarter of 2021 and net charge-offs of $0.2 million for the first quarter of 2022.

    At June 30, 2022, the allowance for credit losses was $113.7 million or 1.05% of outstanding loans and 261% of non-performing loans, compared to $110.6 million or 1.09% of outstanding loans and 239% of non-performing loans at the end of the previous quarter. The increase in the allowance during the current quarter compared to the previous quarter resulted from the growth in the loan portfolio and the effect of management's consideration of the potential impact of recessionary pressures. The impact from these metrics applied in the determination of the allowance continue to be partially mitigated by forecasted improvement in certain economic metrics, notably the projected improvement in the unemployment rate in future periods.

    Income Statement Review

    Quarterly Results

    Net income for the three months ended June 30, 2022 was $54.8 million compared to net income of $57.3 million for the prior year quarter. The decline in earnings was the result of lower net interest income, the current quarter's provision for credit losses compared to the prior year's credit to the allowance, and an increase in non-interest expense, which were partially offset by the increase in non-interest income. The decline in net interest income was the product of lower PPP fees and interest partially offset by interest income from loan growth, and an increase in interest expense. Non-interest income increased as a result of the sale of the Company's insurance business, offsetting lower mortgage banking income. Non-interest expense increased primarily as a result of the transaction costs associated with the asset sale and increases in various categories of operational costs in the current quarter compared to the prior year quarter. Current quarter core earnings were $44.2 million ($0.98 per diluted common share), compared to $58.4 million ($1.23 per diluted common share) for the quarter ended June 30, 2021 and $45.1 million ($0.99 per diluted common share) for the quarter ended March 31, 2022.

    Net interest income for the second quarter of 2022 decreased $2.1 million or 2% compared to the second quarter of 2021, due to the combined impact of the $0.9 million reduction in interest income and the increase of $1.2 million in interest expense. The decline in interest income was driven by a $12.0 million decline in interest and fees on PPP loans, which was substantially offset by interest income from the remaining categories of commercial loans and, to a lesser degree, an increase in investment securities income. The increase in interest expense was primarily the result of the interest expense associated with issuance of subordinated debt late in the first quarter of the current year. The net interest margin for the second quarter of 2022 was 3.49% as compared to 3.63% for the same quarter of the prior year, as the yield on interest-earning assets declined eleven basis points and the rate paid on interest-bearing liabilities increased six basis points. Excluding the effects of amortization of the fair value marks derived from acquisitions and interest and fees from PPP loans, the net interest margin was 3.45% for the current quarter compared to 3.49% for second quarter of 2021.

    The provision for credit losses was a charge of $3.0 million for the second quarter of 2022 compared to a credit of $4.2 million for the second quarter of 2021. The provision for credit losses for the first quarter of 2022 was a charge of $1.6 million. The provision for the current quarter reflects the growth in the loan portfolio during the quarter and management's consideration of the increased potential of an economic recession. These factors exceeded the impact derived from continuing improvement in forecasted macroeconomic indicators.

    Non-interest income increased $9.0 million or 34% for the second quarter of 2022, compared to the prior year quarter as a direct result of the gain on the sale of the Company's insurance business. Excluding the disposal gain, non-interest income declined 29% compared to the prior year quarter. The gain was partially offset by a $4.3 million decline in income from mortgage banking activities and the $3.4 million decline in other non-interest income compared to the second quarter of 2021. Wealth management income remained stable and service charges on deposit accounts grew 25%. Other non-interest income declined 62% compared to the prior year, which included the full payoff of a purchased credit deteriorated loan and activity-based vendor incentives.

    Non-interest expense increased $2.0 million or 3% for the second quarter of 2022, compared to the prior year quarter. The majority of the increase was the result of $1.1 million merger, acquisition and disposal expense associated with the sale of the Company's insurance business during the quarter. Other expenses increased $1.4 million as a result of the combination of the provision for lines of credit, franchise taxes and other operating costs. The remaining categories of non-interest expense experienced modest increases or decreases with professional fees declining $0.8 million during the current quarter compared to the prior year quarter as a result of lower consulting fees.

    For the second quarter of 2022, the GAAP efficiency ratio was 46.03% compared to 46.89% for the second quarter of 2021, and 50.92% for the first quarter of 2022. The non-GAAP efficiency ratio was 49.79% for the current quarter as compared to 45.36% for the second quarter of 2021, and 49.34% for the first quarter of 2022. The increase in the non-GAAP efficiency ratio (reflecting a decrease in efficiency) from the second quarter of the prior year to the current year quarter was primarily the result of the 7% decline in non-GAAP revenue, driven chiefly by the decrease in the non-GAAP non-interest income. ROA for the second quarter ended June 30, 2022 was 1.69% and ROTCE was 20.42% compared to 1.42% and 16.04%, respectively, for the first quarter of 2022. On a non-GAAP basis, the current quarter's core ROA was 1.37% and core ROTCE was 16.49% compared to core ROA of 1.45% and core ROTCE of 16.45% for the first quarter of 2022.

    Year-to-Date Results

    The Company recorded net income of $98.7 million for the six months ended June 30, 2022 compared to net income of $132.7 million for the same period of the prior year. The decline in year-to-date earnings for the current year primarily reflects the impact of the decline in PPP fees and interest, partially offset by the impact on interest income from the growth in the commercial loan portfolio, and the activity in the provision for loan losses, which shifted from the significant credit in the prior year to the charge for the current year. Core earnings were $89.3 million for the six months ended June 30, 2022 compared to $142.0 million for the prior year. Core earnings for the current period compared to the prior year period were reduced primarily as a result of the activity associated with the provision for credit losses, a decline in mortgage banking income and lower other non-interest income from isolated events that occurred in 2021. Core earnings for the current period exclude the gain from the disposal of the Company's insurance business.

    For the six months ended June 30, 2022, net interest income decreased 2% or $5.2 million compared to the prior year as a result of the $19.7 million reduction in PPP interest and fees, partially offset by the positive impact on interest income from the year-over-year loan growth and the decrease in interest expense. Excluding the impact of interest and fees on PPP loans, tax-equivalent interest and fees on loans, driven by commercial loans, increased 5% compared to the prior year period. The decrease in interest expense was primarily the result of the decline in interest expense associated with money market and time deposits and total borrowings. The net interest margin declined to 3.49% for the six months ended June 30, 2022, compared to 3.60% for the prior year. Excluding the impact of the amortization of the fair value marks derived from acquisitions and PPP interest and fees, the net interest margin for the current year would have been 3.43% compared to 3.46% for the prior year.

    The provision for credit losses for the six months ended June 30, 2022 amounted to a charge of $4.7 million as compared to a credit of $38.9 million for 2021. For the six months ended June 30, 2022, provision for credit losses is a reflection of the growth in the loan portfolio, coupled with the management's consideration of the potential impact of recessionary pressures, which exceeded the benefit to the provision derived from continuing improvement in forecasted macroeconomic indicators. The prior year's credit to the provision for credit losses was a reflection of the net impact of forecasted economic metrics and other factors applied in the determination of the allowance.

    For the six months ended June 30, 2022, non-interest income which included a $16.7 million gain on the disposal of assets, increased 1% to $55.8 million compared to $55.1 million for 2021. Excluding the gain, non-interest income decreased 29% driven by a 76% decline in income from mortgage banking activities and a 55% decline in other income. The decline in income from mortgage banking activities is the result of the rising interest rate environment, which has dampened new mortgage and refinancing activity. Other income declined from the prior year which included the full payoff of a purchased credit deteriorated loan and activity-based vendor incentives. These declines exceeded the 3% growth in wealth management income, 25% growth in service charges on deposit accounts and 5% growth in bank card fees. Wealth management income grew, despite the erosion of assets under management due to the marketplace volatility, as a result of increased asset management fees. Service charge and bank card income growth occurred as a result of increased customer activity.

    Non-interest expense decreased 3% to $127.1 million for the six months ended June 30, 2022, compared to $131.1 million for 2021. Excluding merger, acquisition and disposal expense from the current and prior year periods and the $9.1 million in prepayment penalties on FHLB borrowings that occurred in the prior year, non-interest expense increased 3% year-over-year. The drivers of the increase in non-interest expense were a 4% increase in salaries and benefits and a 20% increase other expense, excluding the FHLB prepayment penalties. The year-over-year increase in salaries and benefits was the result of staffing increases, salary adjustments and increased benefit costs. The principal component of the increase in other expense was the increase in the provision for credit losses provided on lines of credit compared to the prior year period. Marketing and outside data services costs increased 9% and 10%, respectively, while FDIC insurance premiums and professional fee and service costs decreased 30% and 10%, respectively, for the period.

    For the six months ended June 30, 2022, the GAAP efficiency ratio was 48.30% compared to 48.98% for the same period in 2021. The non-GAAP efficiency ratio the current year was 49.57% compared to 44.01% for to 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 8% 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, loss on FHLB redemption, gain on disposal of assets, merger, acquisition and disposal expense and investment securities gains 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 merger, acquisition and disposal expense, amortization of intangible assets, loss on FHLB redemption, gain on disposal of assets and investment securities gains, on a net of tax basis.

    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 second 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 1-844-200-6205. Please use the following access code: 532489. 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 August 4, 2022. A replay of the teleconference will be available through the same time period by calling 1-866-813-9403 under conference call number 378796.

    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, President & Chief Executive Officer, or
    Philip J. Mantua, E.V.P. & Chief Financial Officer
    Sandy Spring Bancorp
    17801 Georgia Avenue
    Olney, Maryland 20832
    1-800-399-5919
    Email: DSchrider@sandyspringbank.com
    PMantua@sandyspringbank.com
    Website: www.sandyspringbank.com

    Media Contact:
    Jen Schell
    301-570-8331
    jschell@sandyspringbank.com

    Forward-Looking Statements

    Sandy Spring Bancorp’s forward-looking statements are subject to the following principal risks and uncertainties: risks, uncertainties and other factors relating to the COVID-19 pandemic, including the effect of the pandemic on our borrowers and their ability to make payments on their obligations, the effectiveness of vaccination programs, and the effect of remedial actions and stimulus measures adopted by federal, state and local governments; general economic conditions and trends, either nationally or locally; conditions in the securities markets; changes in interest rates; changes in deposit flows, and in the demand for deposit, loan, and investment products and other financial services; changes in real estate values; changes in the quality or composition of the Company’s loan or investment portfolios; changes in competitive pressures among financial institutions or from non-financial institutions; the Company’s ability to retain key members of management; changes in legislation, regulations, and policies; the possibility that any of the anticipated benefits of acquisitions will not be realized or will not be realized within the expected time period; and a variety of other matters which, by their nature, are subject to significant uncertainties. Sandy Spring Bancorp provides greater detail regarding some of these factors in its Form 10-K for the year ended December 31, 2021, including in the Risk Factors section of that report, and in its other SEC reports. Sandy Spring Bancorp’s forward-looking statements may also be subject to other risks and uncertainties, including those that it may discuss elsewhere in this news release or in its filings with the SEC, accessible on the SEC’s Web site at www.sec.gov.


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

      Three Months Ended
    June 30,
     %
    Change

     Six Months Ended
    June 30,
     %
    Change

    (Dollars in thousands, except per share data) 2022 2021  2022 2021 
    Results of operations:            
    Net interest income $105,950  $108,046  (2)% $207,401  $212,646  (2)%
    Provision/ (credit) for credit losses  3,046   (4,204) (172)  4,681   (38,912) (112)
    Non-interest income  35,245   26,259  34   55,840   55,125  1 
    Non-interest expense  64,991   62,975  3   127,138   131,148  (3)
    Income before income tax expense  73,158   75,534  (3)  131,422   175,535  (25)
    Net income  54,800   57,263  (4)  98,735   132,727  (26)
                 
    Net income attributable to common shareholders $54,606  $56,782  (4) $98,259  $131,606  (25)
    Pre-tax pre-provision net income(1) $76,204  $71,330  7  $136,103  $136,623   
                 
    Return on average assets  1.69%  1.79%    1.56%  2.09%  
    Return on average common equity  14.97%  15.07%    13.39%  17.84%  
    Return on average tangible common equity(1)  20.42%  20.44%    18.21%  24.35%  
    Net interest margin  3.49%  3.63%    3.49%  3.60%  
    Efficiency ratio - GAAP basis(2)  46.03%  46.89%    48.30%  48.98%  
    Efficiency ratio - Non-GAAP basis(2)  49.79%  45.36%    49.57%  44.01%  
                 
    Per share data:            
    Basic net income per common share $1.21  $1.20  1% $2.18  $2.79  (22)%
    Diluted net income per common share $1.21  $1.19  2  $2.17  $2.77  (22)
    Weighted average diluted common shares  45,111,693   47,523,198  (5)  45,223,086   47,469,470  (5)
    Dividends declared per share $0.34  $0.32  6  $0.68  $0.64  6 
    Book value per common share $33.10  $33.02    $33.10  $33.02   
    Tangible book value per common share(1) $24.45  $24.58  (1) $24.45  $24.58  (1)
    Outstanding common shares  44,629,697   47,312,982  (6)  44,629,697   47,312,982  (6)
                 
    Financial condition at period-end:            
    Investment securities $1,595,424  $1,482,123  8% $1,595,424  $1,482,123  8%
    Loans  10,786,290   10,092,515  7   10,786,290   10,092,515  7 
    Interest-earning assets  12,542,388   12,167,067  3   12,542,388   12,167,067  3 
    Assets  13,303,009   12,925,577  3   13,303,009   12,925,577  3 
    Deposits  10,969,461   10,866,466  1   10,969,461   10,866,466  1 
    Interest-bearing liabilities  7,570,671   7,233,536  5   7,570,671   7,233,536  5 
    Stockholders' equity  1,477,169   1,562,280  (5)  1,477,169   1,562,280  (5)
                 
    Capital ratios:            
    Tier 1 leverage(3)  9.53%  9.49%    9.53%  9.49%  
    Common equity tier 1 capital to risk-weighted assets(3)  11.58%  12.49%    11.58%  12.49%  
    Tier 1 capital to risk-weighted assets(3)  11.58%  12.49%    11.58%  12.49%  
    Total regulatory capital to risk-weighted assets(3)  16.07%  15.85%    16.07%  15.85%  
    Tangible common equity to tangible assets(4)  8.45%  9.28%    8.45%  9.28%  
    Average equity to average assets  11.30%  11.91%    11.63%  11.73%  
                 
    Credit quality ratios:            
    Allowance for credit losses to loans  1.05%  1.23%    1.05%  1.23%  
    Non-performing loans to total loans  0.40%  0.93%    0.40%  0.93%  
    Non-performing assets to total assets  0.33%  0.74%    0.33%  0.74%  
    Allowance for credit losses to non-performing loans  261.44%  131.44%    261.44%  131.44%  
    Annualized net charge-offs to average loans(5)  %  0.09%    %  0.05%  

    (1)  Represents a non-GAAP measure.
    (2) The efficiency ratio - GAAP basis is non-interest expense divided by net interest income plus non-interest income from the Condensed Consolidated Statements of Income. The traditional efficiency ratio - Non-GAAP basis excludes intangible asset amortization, loss on FHLB redemption, and merger, acquisition and disposal expense from non-interest expense; gain on disposal of assets and investment securities gains from non-interest income; and adds the tax-equivalent adjustment to net interest income. See the Reconciliation Table included with these Financial Highlights.
    (3)  Estimated ratio at June 30, 2022.
    (4) The tangible common equity to tangible assets ratio is a non-GAAP ratio that divides assets excluding intangible assets into stockholders' equity after deducting intangible assets. 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
    June 30,
     Six Months Ended
    June 30,
    (Dollars in thousands) 2022 2021 2022 2021
    Core earnings (non-GAAP):        
    Net income (GAAP) $54,800  $57,263  $98,735  $132,727 
    Plus/ (less) non-GAAP adjustments (net of tax):        
    Merger, acquisition and disposal expense  793      793   34 
    Amortization of intangible assets  1,090   1,236   2,211   2,500 
    Loss on FHLB redemption           6,792 
    Gain on disposal of assets  (12,417)     (12,417)   
    Investment securities gains  (28)  (53)  (34)  (96)
    Core earnings (Non-GAAP) $44,238  $58,446  $89,288  $141,957 
             
    Core earnings per diluted common share (non-GAAP):        
    Weighted average common shares outstanding - diluted (GAAP)  45,111,693   47,523,198   45,223,086   47,469,470 
             
    Earnings per diluted common share (GAAP) $1.21  $1.19  $2.17  $2.77 
    Core earnings per diluted common share (non-GAAP) $0.98  $1.23  $1.97  $2.99 
             
    Core return on average assets (non-GAAP):        
    Average assets (GAAP) $12,991,692  $12,798,355  $12,785,040  $12,797,068 
             
    Return on average assets (GAAP)  1.69%  1.79%  1.56%  2.09%
    Core return on average assets (non-GAAP)  1.37%  1.83%  1.41%  2.24%
             
    Core return on average tangible common equity (non-GAAP):        
    Average total stockholders' equity (GAAP) $1,468,036  $1,523,875  $1,487,170  $1,500,642 
    Average goodwill  (367,986)  (370,223)  (369,098)  (370,223)
    Average other intangible assets, net  (23,801)  (30,224)  (24,580)  (31,056)
    Average tangible common equity (non-GAAP) $1,076,249  $1,123,428  $1,093,492  $1,099,363 
             
    Return on average tangible common equity (non-GAAP)  20.42%  20.44%  18.21%  24.35%
    Core return on average tangible common equity (non-GAAP)  16.49%  20.87%  16.47%  26.04%


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

      Three Months Ended
    June 30,
     Six Months Ended
    June 30,
    (Dollars in thousands) 2022 2021 2022 2021
    Pre-tax pre-provision net income:        
    Net income (GAAP) $54,800  $57,263  $98,735  $132,727 
    Plus/ (less) non-GAAP adjustments:        
    Income tax expense  18,358   18,271   32,687   42,808 
    Provision/ (credit) for credit losses  3,046   (4,204)  4,681   (38,912)
    Pre-tax pre-provision net income (non-GAAP) $76,204  $71,330  $136,103  $136,623 
             
    Efficiency ratio (GAAP):        
    Non-interest expense $64,991  $62,975  $127,138  $131,148 
             
    Net interest income plus non-interest income $141,195  $134,305  $263,241  $267,771 
             
    Efficiency ratio (GAAP)  46.03%  46.89%  48.30%  48.98%
             
    Efficiency ratio (Non-GAAP):        
    Non-interest expense $64,991  $62,975  $127,138  $131,148 
    Less non-GAAP adjustments:        
    Amortization of intangible assets  1,466   1,659   2,974   3,356 
    Loss on FHLB redemption           9,117 
    Merger, acquisition and disposal expense  1,067      1,067   45 
    Non-interest expense - as adjusted $62,458  $61,316  $123,097  $118,630 
             
    Net interest income plus non-interest income $141,195  $134,305  $263,241  $267,771 
    Plus non-GAAP adjustment:        
    Tax-equivalent income  992   930   1,858   1,910 
    Less non-GAAP adjustment:        
    Investment securities gains  38   71   46   129 
    Gain on disposal of assets  16,699      16,699    
    Net interest income plus non-interest income - as adjusted $125,450  $135,164  $248,354  $269,552 
             
    Efficiency ratio (Non-GAAP)  49.79%  45.36%  49.57%  44.01%
             
    Tangible common equity ratio:        
    Total stockholders' equity $1,477,169  $1,562,280  $1,477,169  $1,562,280 
    Goodwill  (363,436)  (370,223)  (363,436)  (370,223)
    Other intangible assets, net  (22,694)  (29,165)  (22,694)  (29,165)
    Tangible common equity $1,091,039  $1,162,892  $1,091,039  $1,162,892 
             
    Total assets $13,303,009  $12,925,577  $13,303,009  $12,925,577 
    Goodwill  (363,436)  (370,223)  (363,436)  (370,223)
    Other intangible assets, net  (22,694)  (29,165)  (22,694)  (29,165)
    Tangible assets $12,916,879  $12,526,189  $12,916,879  $12,526,189 
             
    Tangible common equity ratio  8.45%  9.28%  8.45%  9.28%
             
    Outstanding common shares  44,629,697   47,312,982   44,629,697   47,312,982 
    Tangible book value per common share $24.45  $24.58  $24.45  $24.58 


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

    (Dollars in thousands) June 30,
    2022
     December 31,
    2021
     June 30,
    2021
    Assets      
    Cash and due from banks $84,215  $65,630  $109,147 
    Federal funds sold  291   312   358 
    Interest-bearing deposits with banks  136,773   354,078   520,989 
    Cash and cash equivalents  221,279   420,020   630,494 
    Residential mortgage loans held for sale (at fair value)  23,610   39,409   71,082 
    Investments held-to-maturity (fair value of $250,915)  274,337       
    Investments available-for-sale (at fair value)  1,268,823   1,465,896   1,441,026 
    Other equity securities  52,264   41,166   41,097 
    Total loans  10,786,290   9,967,091   10,092,515 
    Less: allowance for credit losses  (113,670)  (109,145)  (123,961)
    Net loans  10,672,620   9,857,946   9,968,554 
    Premises and equipment, net  63,243   59,685   55,592 
    Other real estate owned  739   1,034   1,234 
    Accrued interest receivable  33,459   34,349   40,630 
    Goodwill  363,436   370,223   370,223 
    Other intangible assets, net  22,694   25,920   29,165 
    Other assets  306,505   275,078   276,480 
    Total assets $13,303,009  $12,590,726  $12,925,577 
           
    Liabilities      
    Noninterest-bearing deposits $4,129,440  $3,779,630  $4,000,636 
    Interest-bearing deposits  6,840,021   6,845,101   6,865,830 
    Total deposits  10,969,461   10,624,731   10,866,466 
    Securities sold under retail repurchase agreements and federal funds purchased  185,744   141,086   140,708 
    Advances from FHLB  175,000       
    Subordinated debt  369,906   172,712   226,998 
    Total borrowings  730,650   313,798   367,706 
    Accrued interest payable and other liabilities  125,729   132,518   129,125 
    Total liabilities  11,825,840   11,071,047   11,363,297 
           
    Stockholders' equity      
    Common stock -- par value $1.00; shares authorized 100,000,000; shares issued and outstanding 44,629,697, 45,118,930 and 47,312,982 at June 30, 2022, December 31, 2021 and June 30, 2021, respectively  44,630   45,119   47,313 
    Additional paid in capital  730,285   751,072   850,555 
    Retained earnings  799,707   732,027   659,578 
    Accumulated other comprehensive loss  (97,453)  (8,539)  4,834 
    Total stockholders' equity  1,477,169   1,519,679   1,562,280 
    Total liabilities and stockholders' equity $13,303,009  $12,590,726  $12,925,577 


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

      Three Months Ended
    June 30,
     Six Months Ended
    June 30,
    (Dollars in thousands, except per share data) 2022 2021 2022 2021
    Interest income:        
    Interest and fees on loans $106,221 $107,751  $205,715 $215,179 
    Interest on loans held for sale  145  549   343  1,086 
    Interest on deposits with banks  358  47   471  93 
    Interest and dividends on investment securities:        
    Taxable  4,630  4,373   8,737  8,272 
    Tax-advantaged  2,554  2,103   4,678  4,454 
    Interest on federal funds sold  1     1   
    Total interest income  113,909  114,823   219,945  229,084 
    Interest Expense:        
    Interest on deposits  3,795  3,851   6,088  8,681 
    Interest on retail repurchase agreements and federal funds purchased  201  43   255  96 
    Interest on advances from FHLB  17  373   17  2,649 
    Interest on subordinated debt  3,946  2,510   6,184  5,012 
    Total interest expense  7,959  6,777   12,544  16,438 
    Net interest income  105,950  108,046   207,401  212,646 
    Provision/ (credit) for credit losses  3,046  (4,204)  4,681  (38,912)
    Net interest income after provision/ (credit) for credit losses  102,904  112,250   202,720  251,558 
    Non-interest income:        
    Investment securities gains  38  71   46  129 
    Gain on disposal of assets  16,699     16,699   
    Service charges on deposit accounts  2,467  1,976   4,793  3,828 
    Mortgage banking activities  1,483  5,776   3,781  15,945 
    Wealth management income  9,098  9,121   18,435  17,851 
    Insurance agency commissions  812  1,247   2,927  3,400 
    Income from bank owned life insurance  703  705   1,498  1,385 
    Bank card fees  1,810  1,785   3,478  3,303 
    Other income  2,135  5,578   4,183  9,284 
    Total non-interest income  35,245  26,259   55,840  55,125 
    Non-interest expense:        
    Salaries and employee benefits  39,550  38,990   78,923  75,642 
    Occupancy expense of premises  4,734  5,497   9,768  10,984 
    Equipment expenses  3,559  3,020   7,095  6,242 
    Marketing  1,280  1,052   2,473  2,264 
    Outside data services  2,564  2,260   4,983  4,543 
    FDIC insurance  1,078  1,450   2,062  2,942 
    Amortization of intangible assets  1,466  1,659   2,974  3,356 
    Merger, acquisition and disposal expense  1,067     1,067  45 
    Professional fees and services  2,372  3,165   4,389  4,896 
    Other expenses  7,321  5,882   13,404  20,234 
    Total non-interest expense  64,991  62,975   127,138  131,148 
    Income before income tax expense  73,158  75,534   131,422  175,535 
    Income tax expense  18,358  18,271   32,687  42,808 
    Net income $54,800 $57,263  $98,735 $132,727 
             
    Net income per share amounts:        
    Basic net income per common share $1.21 $1.20  $2.18 $2.79 
    Diluted net income per common share $1.21 $1.19  $2.17 $2.77 
    Dividends declared per share $0.34 $0.32  $0.68 $0.64 


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

      2022 2021
    (Dollars in thousands, except per share data) Q2 Q1 Q4 Q3 Q2 Q1
    Profitability for the quarter:            
    Tax-equivalent interest income $114,901  $106,902  $110,933  $112,060  $115,753  $115,241 
    Interest expense  7,959   4,585   4,803   4,525   6,777   9,661 
    Tax-equivalent net interest income  106,942   102,317   106,130   107,535   108,976   105,580 
    Tax-equivalent adjustment  992   866   862   931   930   980 
    Provision/ (credit) for credit losses  3,046   1,635   1,585   (8,229)  (4,204)  (34,708)
    Non-interest income  35,245   20,595   22,536   24,394   26,259   28,866 
    Non-interest expense  64,991   62,147   66,141   63,181   62,975   68,173 
    Income before income tax expense  73,158   58,264   60,078   76,046   75,534   100,001 
    Income tax expense  18,358   14,329   14,674   19,070   18,271   24,537 
    Net income $54,800  $43,935  $45,404  $56,976  $57,263  $75,464 
    GAAP financial performance:            
    Return on average assets  1.69%  1.42%  1.41%  1.75%  1.79%  2.39%
    Return on average common equity  14.97%  11.83%  11.87%  14.54%  15.07%  20.72%
    Return on average tangible common equity  20.42%  16.04%  16.07%  19.56%  20.44%  28.47%
    Net interest margin  3.49%  3.49%  3.51%  3.52%  3.63%  3.56%
    Efficiency ratio - GAAP basis  46.03%  50.92%  51.75%  48.23%  46.89%  51.08%
    Non-GAAP financial performance:            
    Pre-tax pre-provision net income $76,204  $59,899  $61,663  $67,817  $71,330  $65,293 
    Core after-tax earnings $44,238  $45,050  $46,575  $58,151  $58,446  $83,511 
    Core return on average assets  1.37%  1.45%  1.44%  1.79%  1.83%  2.65%
    Core return on average common equity  12.09%  12.13%  12.17%  14.84%  15.38%  22.93%
    Core return on average tangible common equity  16.49%  16.45%  16.49%  19.96%  20.87%  31.50%
    Core earnings per diluted common share $0.98  $0.99  $1.02  $1.23  $1.23  $1.76 
    Efficiency ratio - Non-GAAP basis  49.79%  49.34%  50.17%  46.67%  45.36%  42.65%
    Per share data:          
    Net income attributable to common shareholders $54,606  $43,667  $45,114  $56,622  $56,782  $74,824 
    Basic net income per common share $1.21  $0.97  $0.99  $1.21  $1.20  $1.59 
    Diluted net income per common share $1.21  $0.96  $0.99  $1.20  $1.19  $1.58 
    Weighted average diluted common shares  45,111,693   45,333,292   45,655,924   47,086,824   47,523,198   47,415,060 
    Dividends declared per share $0.34  $0.34  $0.32  $0.32  $0.32  $0.32 
    Non-interest income:            
    Securities gains $38  $8  $34  $49  $71  $58 
    Gain on disposal of assets  16,699                
    Service charges on deposit accounts  2,467   2,326   2,305   2,108   1,976   1,852 
    Mortgage banking activities  1,483   2,298   3,622   4,942   5,776   10,169 
    Wealth management income  9,098   9,337   9,598   9,392   9,121   8,730 
    Insurance agency commissions  812   2,115   1,332   2,285   1,247   2,153 
    Income from bank owned life insurance  703   795   819   818   705   680 
    Bank card fees  1,810   1,668   1,818   1,775   1,785   1,518 
    Other income  2,135   2,048   3,008   3,025   5,578   3,706 
    Total non-interest income $35,245  $20,595  $22,536  $24,394  $26,259  $28,866 
    Non-interest expense:            
    Salaries and employee benefits $39,550  $39,373  $41,535  $38,653  $38,990  $36,652 
    Occupancy expense of premises  4,734   5,034   5,693   5,728   5,497   5,487 
    Equipment expenses  3,559   3,536   3,427   3,214   3,020   3,222 
    Marketing  1,280   1,193   1,090   1,376   1,052   1,212 
    Outside data services  2,564   2,419   2,123   2,317   2,260   2,283 
    FDIC insurance  1,078   984   991   361   1,450   1,492 
    Amortization of intangible assets  1,466   1,508   1,609   1,635   1,659   1,697 
    Merger, acquisition and disposal expense  1,067               45 
    Professional fees and services  2,372   2,017   2,381   3,031   3,165   1,731 
    Other expenses  7,321   6,083   7,292   6,866   5,882   14,352 
    Total non-interest expense $64,991  $62,147  $66,141  $63,181  $62,975  $68,173 


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

      2022 2021
    (Dollars in thousands, except per share data) Q2 Q1 Q4 Q3 Q2 Q1
    Balance sheets at quarter end:          
    Commercial investor real estate loans $4,761,658  $4,388,275  $4,141,346  $3,743,698  $3,712,374  $3,652,418 
    Commercial owner-occupied real estate loans  1,767,326   1,692,253   1,690,881   1,661,092   1,687,843   1,644,848 
    Commercial AD&C loans  1,094,528   1,089,331   1,088,094   1,177,949   1,126,960   1,051,013 
    Commercial business loans  1,353,380   1,349,602   1,481,834   1,594,528   1,974,366   2,411,109 
    Residential mortgage loans  1,147,577   1,000,697   937,570   911,997   960,527   1,022,546 
    Residential construction loans  235,486   204,259   197,652   181,319   172,869   171,028 
    Consumer loans  426,335   419,911   429,714   450,765   457,576   493,904 
    Total loans  10,786,290   10,144,328   9,967,091   9,721,348   10,092,515   10,446,866 
    Allowance for credit losses  (113,670)  (110,588)  (109,145)  (107,920)  (123,961)  (130,361)
    Loans held for sale  23,610   17,537   39,409   44,678   71,082   84,930 
    Investment securities  1,595,424   1,586,441   1,507,062   1,470,652   1,482,123   1,472,727 
    Interest-earning assets  12,542,388   12,205,058   11,867,952   12,245,374   12,167,067   12,132,405 
    Total assets  13,303,009   12,967,416   12,590,726   13,017,464   12,925,577   12,873,366 
    Noninterest-bearing demand deposits  4,129,440   4,039,797   3,779,630   3,987,411   4,000,636   3,770,852 
    Total deposits  10,969,461   10,852,794   10,624,731   10,987,400   10,866,466   10,677,752 
    Customer repurchase agreements  110,744   130,784   141,086   147,504   140,708   129,318 
    Total interest-bearing liabilities  7,570,671   7,313,783   7,158,899   7,320,132   7,233,536   7,423,262 
    Total stockholders' equity  1,477,169   1,488,910   1,519,679   1,546,060   1,562,280   1,511,694 
    Quarterly average balance sheets:          
    Commercial investor real estate loans $4,512,937  $4,220,246  $3,769,529  $3,678,886  $3,675,119  $3,634,174 
    Commercial owner-occupied real estate loans  1,727,325   1,683,557   1,669,737   1,671,442   1,663,543   1,638,885 
    Commercial AD&C loans  1,096,369   1,102,660   1,140,059   1,161,183   1,089,287   1,049,597 
    Commercial business loans  1,334,350   1,372,755   1,482,901   1,820,598   2,225,885   2,291,097 
    Residential mortgage loans  1,070,836   964,056   925,093   934,365   994,899   1,066,714 
    Residential construction loans  221,031   197,366   186,129   170,511   176,135   179,925 
    Consumer loans  421,022   424,859   436,030   452,289   468,686   496,578 
    Total loans  10,383,870   9,965,499   9,609,478   9,889,274   10,293,554   10,356,970 
    Loans held for sale  12,744   17,594   29,426   50,075   66,958   82,263 
    Investment securities  1,686,181   1,617,615   1,535,265   1,403,496   1,482,905   1,407,455 
    Interest-earning assets  12,283,834   11,859,803   12,012,576   12,121,048   12,037,701   12,029,424 
    Total assets  12,991,692   12,576,089   12,791,526   12,886,460   12,798,355   12,801,539 
    Noninterest-bearing demand deposits  4,001,762   3,758,732   3,879,572   3,869,293   3,763,135   3,394,110 
    Total deposits  10,829,221   10,542,029   10,809,665   10,832,115   10,663,346   10,343,190 
    Customer repurchase agreements  122,728   131,487   144,988   145,483   136,286   148,195 
    Total interest-bearing liabilities  7,377,045   7,163,641   7,247,756   7,315,021   7,356,656   7,742,987 
    Total stockholders' equity  1,468,036   1,506,516   1,517,793   1,554,765   1,523,875   1,477,150 
    Financial measures:            
    Average equity to average assets  11.30%  11.98%  11.87%  12.07%  11.91%  11.54%
    Investment securities to earning assets  12.72%  13.00%  12.70%  12.01%  12.18%  12.14%
    Loans to earning assets  86.00%  83.12%  83.98%  79.39%  82.95%  86.11%
    Loans to assets  81.08%  78.23%  79.16%  74.68%  78.08%  81.15%
    Loans to deposits  98.33%  93.47%  93.81%  88.48%  92.88%  97.84%
    Assets under management $5,171,321  $5,793,787  $6,078,204  $5,733,311  $5,676,141  $5,401,158 
    Capital measures:            
    Tier 1 leverage(1)  9.53%  9.66%  9.26%  9.33%  9.49%  9.14%
    Common equity tier 1 capital to risk-weighted assets(1)  11.58%  12.03%  11.91%  12.53%  12.49%  12.11%
    Tier 1 capital to risk-weighted assets(1)  11.58%  12.03%  11.91%  12.53%  12.49%  12.11%
    Total regulatory capital to risk-weighted assets(1)  16.07%  16.77%  14.59%  15.30%  15.85%  15.52%
    Book value per common share $33.10  $32.97  $33.68  $33.52  $33.02  $32.04 
    Outstanding common shares  44,629,697   45,162,908   45,118,930   46,119,074   47,312,982   47,187,389 

    (1) Estimated ratio at June 30, 2022.


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

      2022 2021
    (Dollars in thousands) 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 $ $ $ $14,830 $ $
    Commercial owner-occupied real estate            
    Commercial AD&C        7,344    
    Commercial business            31
    Residential real estate:            
    Residential mortgage  353  296  557  679  680  398
    Residential construction            
    Consumer            
    Total loans 90 days past due  353  296  557  22,853  680  429
    Non-accrual loans:            
    Commercial real estate:            
    Commercial investor real estate  11,245  11,743  12,489  15,386  42,072  42,776
    Commercial owner-occupied real estate  7,869  8,083  9,306  9,854  8,183  8,316
    Commercial AD&C  1,353  1,081  650  1,022  14,489  14,975
    Commercial business  7,542  8,357  8,420  9,454  9,435  13,147
    Residential real estate:            
    Residential mortgage  7,305  8,148  8,441  9,511  9,440  9,593
    Residential construction  1  51  55  62  62  
    Consumer  5,692  6,406  6,725  7,826  7,718  7,193
    Total non-accrual loans  41,007  43,869  46,086  53,115  91,399  96,000
    Total restructured loans - accruing  2,119  2,161  2,167  2,199  2,228  2,271
    Total non-performing loans  43,479  46,326  48,810  78,167  94,307  98,700
    Other assets and other real estate owned (OREO)  739  1,034  1,034  1,105  1,234  1,354
    Total non-performing assets $44,218 $47,360 $49,844 $79,272 $95,541 $100,054


      For the Quarter Ended,
    (Dollars in thousands) June 30,
    2022
     March 31,
    2022
     December 31,
    2021
     September 30,
    2021
     June 30,
    2021
     March 31,
    2021
    Analysis of non-accrual loan activity:            
    Balance at beginning of period $43,869  $46,086  $53,115  $91,399  $96,000  $112,361 
    Non-accrual balances transferred to OREO              (257)   
    Non-accrual balances charged-off  (376)  (265)  (754)  (7,171)  (2,166)  (699)
    Net payments or draws  (3,234)  (2,787)  (5,786)  (36,526)  (3,693)  (16,028)
    Loans placed on non-accrual  948   1,503   511   5,699   1,515   421 
    Non-accrual loans brought current  (200)  (668)  (1,000)  (286)     (55)
    Balance at end of period $41,007  $43,869  $46,086  $53,115  $91,399  $96,000 
                 
    Analysis of allowance for credit losses:            
    Balance at beginning of period $110,588  $109,145  $107,920  $123,961  $130,361  $165,367 
    Provision/ (credit) for credit losses  3,046   1,635   1,585   (8,229)  (4,204)  (34,708)
    Less loans charged-off, net of recoveries:            
    Commercial real estate:            
    Commercial investor real estate  (300)  (19)  (109)  5,797   (144)  (27)
    Commercial owner-occupied real estate  (12)        136       
    Commercial AD&C           2,007       
    Commercial business  331   111   564   (53)  2,359   634 
    Residential real estate:            
    Residential mortgage  (9)  120   (80)  (49)  (11)  (270)
    Residential construction  (5)     (2)  (2)  (1)   
    Consumer  (41)  (20)  (13)  (24)  (7)  (39)
    Net charge-offs  (36)  192   360   7,812   2,196   298 
    Balance at the end of period $113,670  $110,588  $109,145  $107,920  $123,961  $130,361 
                 
    Asset quality ratios:            
    Non-performing loans to total loans  0.40%  0.46%  0.49%  0.80%  0.93%  0.94%
    Non-performing assets to total assets  0.33%  0.37%  0.40%  0.61%  0.74%  0.78%
    Allowance for credit losses to loans  1.05%  1.09%  1.10%  1.11%  1.23%  1.25%
    Allowance for credit losses to non-performing loans  261.44%  238.72%  223.61%  138.06%  131.44%  132.08%
    Annualized net charge-offs/ (recoveries) to average loans  %  0.01%  0.01%  0.31%  0.09%  0.01%


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

      Three Months Ended June 30,
      2022 2021
    (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 $4,512,937  $45,148 4.01% $3,675,119  $38,411 4.19%
    Commercial owner-occupied real estate loans  1,727,325   19,410 4.51   1,663,543   19,360 4.67 
    Commercial AD&C loans  1,096,369   11,727 4.29   1,089,287   10,819 3.98 
    Commercial business loans  1,334,350   15,820 4.76   2,225,885   25,248 4.55 
    Total commercial loans  8,670,981   92,105 4.26   8,653,834   93,838 4.35 
    Residential mortgage loans  1,070,836   8,878 3.32   994,899   8,634 3.47 
    Residential construction loans  221,031   1,710 3.10   176,135   1,562 3.56 
    Consumer loans  421,022   3,992 3.80   468,686   4,183 3.58 
    Total residential and consumer loans  1,712,889   14,580 3.41   1,639,720   14,379 3.51 
    Total loans(2)  10,383,870   106,685 4.12   10,293,554   108,217 4.22 
    Loans held for sale  12,744   145 4.56   66,958   549 3.28 
    Taxable securities  1,195,129   4,630 1.55   1,052,229   4,373 1.66 
    Tax-advantaged securities  491,052   3,082 2.51   430,676   2,567 2.38 
    Total investment securities(3)  1,686,181   7,712 1.83   1,482,905   6,940 1.87 
    Interest-bearing deposits with banks  200,560   358 0.72   193,749   47 0.10 
    Federal funds sold  479   1 0.81   535    0.10 
    Total interest-earning assets  12,283,834   114,901 3.75   12,037,701   115,753 3.86 
                 
    Less: allowance for credit losses  (112,656)      (130,734)    
    Cash and due from banks  84,931       97,813     
    Premises and equipment, net  62,422       55,718     
    Other assets  673,161       737,857     
    Total assets $12,991,692      $12,798,355     
                 
    Liabilities and Stockholders' Equity            
    Interest-bearing demand deposits $1,488,034  $414 0.11% $1,400,661  $226 0.06%
    Regular savings deposits  559,906   22 0.02   476,999   66 0.06 
    Money market savings deposits  3,376,742   1,497 0.18   3,364,348   1,254 0.15 
    Time deposits  1,402,777   1,862 0.53   1,658,203   2,305 0.56 
    Total interest-bearing deposits  6,827,459   3,795 0.22   6,900,211   3,851 0.22 
    Federal funds purchased  53,055   166 1.26   19,506   3 0.06 
    Repurchase agreements  122,728   35 0.11   136,286   40 0.12 
    Advances from FHLB  3,809   17 1.74   73,626   373 2.03 
    Subordinated debt  369,994   3,946 4.27   227,027   2,510 4.42 
    Total borrowings  549,586   4,164 3.04   456,445   2,926 2.57 
    Total interest-bearing liabilities  7,377,045   7,959 0.43   7,356,656   6,777 0.37 
                 
    Noninterest-bearing demand deposits  4,001,762       3,763,135     
    Other liabilities  144,849       154,689     
    Stockholders' equity  1,468,036       1,523,875     
    Total liabilities and stockholders' equity $12,991,692      $12,798,355     
                 
    Tax-equivalent net interest income and spread   $106,942 3.32%   $108,976 3.49%
    Less: tax-equivalent adjustment    992      930  
    Net interest income   $105,950     $108,046  
                 
    Interest income/earning assets     3.75%     3.86%
    Interest expense/earning assets     0.26      0.23 
    Net interest margin     3.49%     3.63%

    (1)   Tax-equivalent income has been adjusted using the combined marginal federal and state rate of 25.64% and 25.50% for 2022 and 2021, respectively. The annualized taxable-equivalent adjustments utilized in the above table to compute yields aggregated to $1.0 million and $0.9 million in 2022 and 2021, 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

      Six Months Ended June 30,
      2022 2021
    (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 $4,367,400  $86,782 4.01% $3,654,760  $76,765 4.24%
    Commercial owner-occupied real estate loans  1,705,562   37,842 4.47   1,651,282   38,040 4.65 
    Commercial AD&C loans  1,099,498   22,320 4.09   1,069,552   21,215 4.00 
    Commercial business loans  1,353,446   32,174 4.79   2,258,311   50,042 4.47 
    Total commercial loans  8,525,906   179,118 4.24   8,633,905   186,062 4.35 
    Residential mortgage loans  1,017,741   16,652 3.27   1,030,608   18,178 3.53 
    Residential construction loans  209,264   3,267 3.15   178,020   3,168 3.59 
    Consumer loans  422,929   7,581 3.61   482,555   8,728 3.65 
    Total residential and consumer loans  1,649,934   27,500 3.34   1,691,183   30,074 3.57 
    Total loans(2)  10,175,840   206,618 4.09   10,325,088   216,136 4.22 
    Loans held for sale  15,155   343 4.53   74,568   1,086 2.91 
    Taxable securities  1,180,168   8,737 1.48   984,305   8,272 1.68 
    Tax-advantaged securities  471,919   5,633 2.39   461,084   5,407 2.35 
    Total investment securities(3)  1,652,087   14,370 1.74   1,445,389   13,679 1.89 
    Interest-bearing deposits with banks  229,257   471 0.41   187,954   93 0.10 
    Federal funds sold  650   1 0.43   588    0.09 
    Total interest-earning assets  12,072,989   221,803 3.70   12,033,587   230,994 3.87 
                 
    Less: allowance for credit losses  (111,302)      (146,892)    
    Cash and due from banks  75,750       102,013     
    Premises and equipment, net  61,733       56,042     
    Other assets  685,870       752,318     
    Total assets $12,785,040      $12,797,068     
                 
    Liabilities and Stockholders' Equity            
    Interest-bearing demand deposits $1,494,809  $572 0.08% $1,383,253  $462 0.07%
    Regular savings deposits  553,435   41 0.01   460,738   122 0.05 
    Money market savings deposits  3,401,641   2,122 0.13   3,387,341   2,717 0.16 
    Time deposits  1,355,615   3,353 0.50   1,693,179   5,380 0.64 
    Total interest-bearing deposits  6,805,500   6,088 0.18   6,924,511   8,681 0.25 
    Federal funds purchased  49,271   181 0.74   30,519   13 0.09 
    Repurchase agreements  127,083   74 0.12   142,208   83 0.12 
    Advances from FHLB  1,915   17 1.74   224,467   2,649 2.38 
    Subordinated debt  287,164   6,184 4.31   227,050   5,012 4.41 
    Total borrowings  465,433   6,456 2.80   624,244   7,757 2.51 
    Total interest-bearing liabilities  7,270,933   12,544 0.35   7,548,755   16,438 0.44 
                 
    Noninterest-bearing demand deposits  3,880,919       3,579,642     
    Other liabilities  146,018       168,029     
    Stockholders' equity  1,487,170       1,500,642     
    Total liabilities and stockholders' equity $12,785,040      $12,797,068     
                 
    Tax-equivalent net interest income and spread   $209,259 3.35%   $214,556 3.43%
    Less: tax-equivalent adjustment    1,858      1,910  
    Net interest income   $207,401     $212,646  
                 
    Interest income/earning assets     3.70%     3.87%
    Interest expense/earning assets     0.21      0.27 
    Net interest margin     3.49%     3.60%

    (1)   Tax-equivalent income has been adjusted using the combined marginal federal and state rate of 25.64% and 25.50% for 2022 and 2021, respectively. The annualized taxable-equivalent adjustments utilized in the above table to compute yields aggregated to $1.9 million and $1.9 million in 2022 and 2021, respectively.
    (2)   Non-accrual loans are included in the average balances.
    (3)   Available-for-sale investments are presented at amortized cost. 


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