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Sandy Spring Bancorp Announces Fourth Quarter Results

1. Sandy Spring Bancorp reported a net loss of $39.5 million for Q4 2024. 2. Goodwill impairment charge of $54.4 million heavily impacted quarterly results. 3. Core earnings increased to $21.0 million, up from $17.9 million last quarter. 4. Non-performing loans declined to 1.03%, a small improvement over last quarter. 5. Despite losses, regulatory capital ratios remain strong and well above minimums.

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Why Bearish?

Significant net loss and goodwill impairment may lead to investor concern, resembling past downturns following similar financial shocks.

How important is it?

High importance due to large financial losses and changes in operational performance; likely to impact investor sentiment.

Why Short Term?

Immediate negative reactions likely, but stabilization in core performance could lead to recovery thereafter.

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OLNEY, Md., Jan. 28, 2025 (GLOBE NEWSWIRE) -- 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 EndedDecember 31, %Change Year EndedDecember 31, %Change(Dollars in thousands, except per share data)  2024   2023    2024   2023  Results of operations:            Net interest income $86,086  $81,696  5% $327,126  $354,550  (8)%Provision/ (credit) for credit losses  4,468   (3,445) N/M   14,192   (17,561) N/M Non-interest income  21,646   16,560  31   79,315   67,078  18 Non-interest expense  134,241   67,142  100   343,288   275,054  25 Income/ (loss) before income tax expense  (30,977)  34,559  N/M   48,961   164,135  (70)Net income/ (loss)  (39,453)  26,100  N/M   19,935   122,844  (84)              Net income/ (loss) attributable to common shareholders $(39,457) $26,066  N/M  $19,902  $122,621  (84)Pre-tax pre-provision net income/ (loss) (1) $(26,509) $31,114  N/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 margin  2.53%  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) $0.58  N/M  $0.44  $2.74  (84)%Diluted net income/ (loss) per common share $(0.87) $0.58  N/M  $0.44  $2.73  (84)Weighted average diluted common shares  45,133,834   45,009,574  —   45,227,487   44,947,263  1 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  1  $26.99  $26.64  1 Outstanding common shares  45,140,417   44,913,561  1   45,140,417   44,913,561  1              Financial condition at period-end:            Investment securities $1,418,244  $1,414,453  —% $1,418,244  $1,414,453  —%Loans  11,537,966   11,366,989  2   11,537,966   11,366,989  2 Assets  14,127,480   14,028,172  1   14,127,480   14,028,172  1 Deposits  11,745,665   10,996,538  7   11,745,665   10,996,538  7 Stockholders' equity  1,558,011   1,588,142  (2)  1,558,011   1,588,142  (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 assets  11.26%  10.97%    11.31%  10.87%               Credit quality ratios:            Allowance for credit losses to loans  1.16%  1.06%    1.16%  1.06%  Non-performing loans to total loans  1.03%  0.81%    1.03%  0.81%  Non-performing assets to total assets  0.87%  0.65%    0.87%  0.65%  Allowance for credit losses to non-performing loans  112.59%  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 EndedDecember 31, Year EndedDecember 31,(Dollars in thousands)  2024   2023   2024   2023 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)  4,164   —   4,164   — Amortization of intangible assets (net of tax)(1)  1,937   1,047   6,801   3,898 Goodwill impairment loss(2)  54,391   —   54,391   — 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)  45,133,834   45,009,574   45,227,487   44,947,263          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)  1,937   1,047   6,801   3,898 Plus: Goodwill impairment loss(2)  54,391   —   54,391   — 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 EndedDecember 31, Year EndedDecember 31,(Dollars in thousands)  2024   2023   2024   2023 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 expense          8,476           8,459           29,026           41,291 Provision/ (credit) for credit losses          4,468           (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 assets  2,599   1,403   9,126   5,223 Merger, acquisition and disposal expense  4,164   —   4,164   — Goodwill impairment loss  54,391   —   54,391   — Severance expense  —   —   —   1,939 Pension settlement expense  —   —   —   8,157 Contingent payment expense  —   —   —   36 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 income  1,100   1,113   4,459   4,157 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 shares  45,140,417   44,913,561   45,140,417   44,913,561 Tangible book value per common share $26.99  $26.64  $26.99  $26.64                   Sandy Spring Bancorp, Inc. and SubsidiariesCONDENSED CONSOLIDATED STATEMENTS OF CONDITION - UNAUDITED (Dollars in thousands) December 31,2024 December 31,2023Assets    Cash and due from banks $80,698  $82,257 Federal funds sold  —   245 Interest-bearing deposits with banks  438,265   463,396 Cash and cash equivalents  518,963   545,898 Residential mortgage loans held for sale (at fair value)  22,757   10,836 SBA loans held for sale  715   — 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 cost  61,714   75,607 Total loans  11,537,966   11,366,989 Less: allowance for credit losses - loans  (134,401)  (120,865)Net loans  11,403,565   11,246,124 Premises and equipment, net  55,998   59,490 Other real estate owned  3,265   — Accrued interest receivable  45,627   46,583 Goodwill  309,045   363,436 Other intangible assets, net  30,748   28,301 Other assets  318,553   313,051 Total assets $14,127,480  $14,028,172      Liabilities    Noninterest-bearing deposits $2,804,930  $2,914,161 Interest-bearing deposits  8,940,735   8,082,377 Total deposits  11,745,665   10,996,538 Securities sold under retail repurchase agreements  68,911   75,032 Federal Reserve Bank borrowings  —   300,000 Advances from FHLB  250,000   550,000 Subordinated debt  371,400   370,803 Total borrowings  690,311   1,295,835 Accrued interest payable and other liabilities  133,493   147,657 Total liabilities  12,569,469   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 capital  748,905   742,243 Retained earnings  856,613   898,316 Accumulated other comprehensive loss  (92,647)  (97,331)Total stockholders' equity  1,558,011   1,588,142 Total liabilities and stockholders' equity $14,127,480  $14,028,172           Sandy Spring Bancorp, Inc. and SubsidiariesCONDENSED CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED   Three Months EndedDecember 31, Year EndedDecember 31,(Dollars in thousands, except per share data)  2024   2023   2024  2023 Interest income:        Interest and fees on loans $153,262  $148,655  $609,571 $579,960 Interest on mortgage loans held for sale  249   199   1,050  896 Interest on SBA loans held for sale  21   —   23  — Interest on deposits with banks  7,997   8,456   25,398  22,435 Interest and dividend income on investment securities:        Taxable  7,821   6,454   29,140  26,992 Tax-advantaged  1,697   1,848   7,082  7,224 Interest on federal funds sold  —   4   8  17 Total interest income  171,047   165,616   672,272  637,524 Interest expense:        Interest on deposits  76,111   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 FHLB  3,865   6,086   20,259  27,709 Interest on subordinated debt  4,616   3,946   16,455  15,785 Total interest expense  84,961   83,920   345,146  282,974 Net interest income  86,086   81,696   327,126  354,550 Provision/ (credit) for credit losses  4,468   (3,445)  14,192  (17,561)Net interest income after provision/ (credit) for credit losses  81,618   85,141   312,934  372,111 Non-interest income:        Service charges on deposit accounts  2,998   2,749   11,763  10,447 Mortgage banking activities  1,091   792   5,615  5,536 Wealth management income  10,920   9,219   42,071  36,633 Income from bank owned life insurance  3,213   1,207   7,496  4,210 Bank card fees  457   454   1,750  1,769 Other income  2,967   2,139   10,620  8,483 Total non-interest income  21,646   16,560   79,315  67,078 Non-interest expense:        Salaries and employee benefits  44,309   35,482   159,858  160,192 Occupancy expense of premises  4,727   4,558   19,005  18,778 Equipment expenses  4,252   3,987   15,924  15,675 Marketing  2,013   1,242   5,363  5,103 Outside data services  3,228   3,000   12,642  11,186 FDIC insurance  2,761   2,615   11,396  9,461 Amortization of intangible assets  2,599   1,403   9,126  5,223 Merger, acquisition and disposal expense  4,164   —   4,164  — Professional fees and services  4,805   5,628   21,208  17,982 Goodwill impairment loss  54,391   —   54,391  — Other expenses  6,992   9,227   30,211  31,454 Total non-interest expense  134,241   67,142   343,288  275,054 Income/ (loss) before income tax expense  (30,977)  34,559   48,961  164,135 Income tax expense  8,476   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 SubsidiariesHISTORICAL TRENDS - QUARTERLY FINANCIAL DATA - UNAUDITED    2024   2023 (Dollars in thousands, except per share data) Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1Profitability 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          84,961   88,686   84,828   86,671   83,920   77,330   67,679   54,045 Tax-equivalent net interest income  87,186   82,533   81,424   80,442   82,809   86,149   91,477   98,272 Tax-equivalent adjustment  1,100   1,121   1,139   1,099   1,113   1,068   1,006   970 Provision/ (credit) for credit losses  4,468   6,316   1,020   2,388   (3,445)  2,365   5,055   (21,536)Non-interest income  21,646   19,715   19,587   18,367   16,560   17,391   17,176   15,951 Non-interest expense  134,241   72,937   68,104   68,006   67,142   72,471   69,136   66,305 Income/ (loss) before income tax expense  (30,977)  21,874   30,748   27,316   34,559   27,636   33,456   68,484 Income tax expense  8,476   5,665   7,941   6,944   8,459   6,890   8,711   17,231 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 equity  5.46%  5.88%  8.27%  7.39%  9.26%  7.42%  8.93%  19.10%Net interest margin  2.53%  2.44%  2.46%  2.41%  2.45%  2.55%  2.73%  2.99%Efficiency ratio - GAAP basis  124.61%  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 assets  0.58%  0.50%  0.70%  0.63%  0.76%  0.78%  0.77%  1.52%Core return on average common equity  5.17%  4.44%  6.21%  5.56%  6.97%  7.16%  7.09%  14.20%Core return on average tangible common equity  6.80%  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 basis  67.16%  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 shares  45,133,834   45,242,920   45,145,214   45,086,471   45,009,574   44,960,455   44,888,759   44,872,582 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 accounts  2,998   3,009   2,939   2,817   2,749   2,704   2,606   2,388 Mortgage banking activities  1,091   1,529   1,621   1,374   792   1,682   1,817   1,245 Wealth management income  10,920   10,738   10,455   9,958   9,219   9,391   9,031   8,992 Income from bank owned life insurance  3,213   1,307   1,816   1,160   1,207   845   1,251   907 Bank card fees  457   435   445   413   454   450   447   418 Other income  2,967   2,697   2,311   2,645   2,139   2,319   2,024   2,001 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 premises  4,727   4,657   4,805   4,816   4,558   4,609   4,764   4,847 Equipment expenses  4,252   3,841   3,868   3,963   3,987   3,811   3,760   4,117 Marketing  2,013   1,320   1,288   742   1,242   729   1,589   1,543 Outside data services  3,228   3,025   3,286   3,103   3,000   2,819   2,853   2,514 FDIC insurance  2,761   2,773   2,951   2,911   2,615   2,333   2,375   2,138 Amortization of intangible assets  2,599   2,323   2,135   2,069   1,403   1,245   1,269   1,306 Merger, acquisition and disposal expense  4,164   —   —   —   —   —   —   — Professional fees and services  4,805   6,577   4,946   4,880   5,628   4,509   4,161   3,684 Goodwill impairment loss  54,391   —   —   —   —   —   —   — Other expenses  6,992   7,391   7,004   8,824   9,227   7,563   7,434   7,230 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 SubsidiariesHISTORICAL TRENDS - QUARTERLY FINANCIAL DATA - UNAUDITED    2024   2023 (Dollars in thousands, except per share data) Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1Balance 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 loans  1,748,772   1,737,327   1,747,708   1,741,113   1,755,235   1,760,384   1,770,135   1,769,928 Commercial AD&C loans  1,327,292   1,255,609   1,184,296   1,090,259   988,967   938,673   1,045,742   1,046,665 Commercial business loans  1,653,135   1,620,926   1,601,510   1,509,592   1,504,880   1,454,709   1,423,614   1,437,478 Residential mortgage loans  1,537,589   1,529,786   1,521,890   1,511,624   1,474,521   1,432,051   1,385,743   1,328,524 Residential construction loans  49,028   53,639   78,027   97,685   121,419   160,345   190,690   223,456 Consumer loans  442,557   426,167   417,161   416,132   417,542   416,436   422,505   421,734 Total loans  11,537,966   11,491,921   11,483,921   11,364,284   11,366,989   11,300,292   11,369,639   11,395,241 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 sale  22,757   21,489   18,961   16,627   10,836   19,235   21,476   16,262 SBA loans held for sale  715   425   —   —   —   —   —   — Investment securities  1,418,244   1,440,488   1,401,511   1,405,490   1,414,453   1,392,078   1,463,554   1,528,336 Total assets  14,127,480   14,383,073   14,008,343   13,888,133   14,028,172   14,135,085   13,994,545   14,129,007 Noninterest-bearing demand deposits  2,804,930   2,903,063   2,931,405   2,817,928   2,914,161   3,013,905   3,079,896   3,228,678 Total deposits  11,745,665   11,737,694   11,340,228   11,227,200   10,996,538   11,151,012   10,958,922   11,075,991 Customer repurchase agreements  68,911   70,767   75,038   71,529   75,032   66,581   74,510   47,627 Total stockholders' equity  1,558,011   1,628,837   1,599,004   1,589,364   1,588,142   1,537,914   1,539,032   1,536,865 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 loans  1,739,686   1,741,663   1,734,106   1,746,042   1,755,048   1,769,717   1,773,039   1,769,680 Commercial AD&C loans  1,300,966   1,253,035   1,133,506   1,030,763   960,646   995,682   1,057,205   1,082,791 Commercial business loans  1,606,641   1,579,001   1,551,798   1,508,336   1,433,035   1,442,518   1,441,489   1,444,588 Residential mortgage loans  1,535,924   1,526,445   1,518,748   1,491,277   1,451,614   1,406,929   1,353,809   1,307,761 Residential construction loans  47,788   64,684   86,638   110,456   142,325   174,204   211,590   223,313 Consumer loans  433,185   421,003   417,206   417,539   419,299   421,189   423,306   424,122 Total loans  11,489,784   11,459,834   11,406,408   11,361,747   11,286,995   11,335,698   11,407,070   11,388,459 Residential mortgage loans held for sale  13,768   19,889   14,497   8,142   10,132   13,714   17,480   8,324 SBA loans held for sale  591   65   —   —   —   —   —   Investment securities  1,542,401   1,531,378   1,538,624   1,536,127   1,544,173   1,589,342   1,639,324   1,679,593 Interest-earning assets  13,713,618   13,474,697   13,292,995   13,411,810   13,462,583   13,444,117   13,423,589   13,316,165 Total assets  14,362,321   14,136,037   13,956,261   14,061,935   14,090,423   14,086,342   14,094,653   13,949,276 Noninterest-bearing demand deposits  2,813,545   2,783,906   2,790,620   2,730,295   2,958,254   3,041,101   3,137,971   3,480,433 Total deposits  11,807,983   11,483,524   11,245,476   11,086,145   11,089,587   11,076,724   10,928,038   11,049,991 Customer repurchase agreements  65,253   63,436   62,161   72,836   66,622   67,298   58,382   60,626 Total interest-bearing liabilities  9,792,134   9,600,905   9,441,015   9,583,074   9,418,666   9,332,617   9,257,652   8,806,720 Total stockholders' equity  1,617,633   1,607,377   1,579,582   1,584,902   1,546,312   1,538,553   1,535,465   1,491,929 Financial measures:                Average equity to average assets  11.26%  11.37%  11.32%  11.27%  10.97%  10.92%  10.89%  10.70%Average investment securities to average earning assets  11.25%  11.36%  11.57%  11.45%  11.47%  11.82%  12.21%  12.61%Average loans to average earning assets  83.78%  85.05%  85.81%  84.71%  83.84%  84.32%  84.98%  85.52%Loans to assets  81.67%  79.90%  81.98%  81.83%  81.03%  79.94%  81.24%  80.65%Loans to deposits  98.23%  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  45,140,417   45,125,078   45,109,671   44,940,147   44,913,561   44,895,158   44,862,369   44,712,497  (1)Estimated ratio at December 31, 2024.   Sandy Spring Bancorp, Inc. and SubsidiariesLOAN PORTFOLIO QUALITY DETAIL - UNAUDITED    2024  2023(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 $— $— $— $— $— $— $— $215Commercial owner-occupied real estate  —  —  —  —  —  —  —  —Commercial AD&C  —  —  —  —  —  —  —  —Commercial business  —  —  —  20  20  415  29  3,002Residential real estate:                Residential mortgage  232  399  338  340  342  —  692  352Residential construction  —  —  —  —  —  —  —  —Consumer  —  —  —  —  —  —  —  —Total loans 90 days past due  232  399  338  360  362  415  721  3,569Non-accrual loans:                Commercial real estate:                Commercial investor real estate  58,071  57,578  55,498  55,579  58,658  20,108  20,381  15,451Commercial owner-occupied real estate  7,008  9,639  9,403  4,394  4,640  4,744  4,846  4,949Commercial AD&C  31,314  31,816  2,127  556  1,259  1,422  569  —Commercial business  7,590  9,044  8,455  7,164  10,051  9,671  9,393  9,443Residential real estate:                Residential mortgage  10,939  11,996  12,228  11,835  12,332  10,766  10,153  8,935Residential construction  521  539  539  542  443  449  —  —Consumer  3,697  4,258  4,400  4,011  4,102  4,187  3,396  4,900Total non-accrual loans  119,140  124,870  92,650  84,081  91,485  51,347  48,738  43,678Total non-performing loans  119,372  125,269  92,988  84,441  91,847  51,762  49,459  47,247Other real estate owned (OREO)  3,265  3,265  2,700  2,700  —  261  611  645Total 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 31,2023zSeptember 30,2023 June 30,2023 March 31,2023Analysis 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-accrual  2,847   36,667   10,038   1,490   47,920   4,967   9,276   19,714 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 - loans  4,653   6,310   2,961   3,331   (2,574)  3,171   4,454   (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  1,656   250   (28)  1,550   (105)  15   363   (127)Residential real estate:                Residential mortgage  (7)  (35)  39   (6)  (6)  (4)  35   21 Residential construction  —   —   —   —   —   —   —   — Consumer  87   49   236   (132)  62   115   1,423   (179)Net charge-offs/ (recoveries)  1,680   745   194   1,100   (79)  98   1,780   (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 loans  1.03%  1.09%  0.81%  0.74%  0.81%  0.46%  0.44%  0.41%Non-performing assets to total assets  0.87%  0.89%  0.68%  0.63%  0.65%  0.37%  0.36%  0.34%Allowance for credit losses to total loans  1.16%  1.14%  1.10%  1.08%  1.06%  1.09%  1.06%  1.03%Allowance for credit losses to non-performing loans  112.59%  104.92%  135.35%  145.78%  131.59%  238.32%  243.21%  248.93%Annualized net charge-offs/ (recoveries) to average loans  0.06%  0.03%  0.01%  0.04%  —%  —%  0.06%    (0.01)%                                  Sandy Spring Bancorp, Inc. and SubsidiariesCONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES - UNAUDITED   Three Months Ended December 31,   2024   2023 (Dollars in thousands and tax-equivalent) AverageBalances  Interest (1) AnnualizedAverageYield/Rate AverageBalances Interest (1) AnnualizedAverageYield/RateAssets            Commercial investor real estate loans $4,825,594  $57,898 4.77% $5,125,028  $60,909 4.72%Commercial owner-occupied real estate loans  1,739,686   21,497 4.92   1,755,048   21,011 4.75 Commercial AD&C loans  1,300,966   24,303 7.43   960,646   20,510 8.47 Commercial business loans  1,606,641   26,374 6.53   1,433,035   23,822 6.60 Total commercial loans  9,472,887   130,072 5.46   9,273,757   126,252 5.40 Residential mortgage loans  1,535,924   14,676 3.82   1,451,614   12,984 3.58 Residential construction loans  47,788   672 5.59   142,325   1,515 4.22 Consumer loans  433,185   8,496 7.80   419,299   8,543 8.08 Total residential and consumer loans  2,016,897   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 sale  13,768   249 7.24   10,132   199 7.86 SBA loans held for sale  591   21 14.50   —   — — Taxable securities  1,214,327   7,821 2.58   1,193,408   6,454 2.16 Tax-advantaged securities  328,074   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 banks  667,074   7,997 4.77   621,007   8,456 5.40 Federal funds sold  —   — —   276   4 5.43 Total interest-earning assets  13,713,618   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 banks  77,280       89,143     Premises and equipment, net  56,925       69,162     Other assets  646,063       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 deposits  1,763,353   13,768 3.11   1,153,610   9,715 3.34 Money market savings deposits  3,116,359   26,657 3.40   2,697,930   24,456 3.60 Time deposits  2,594,891   29,176 4.47   2,805,045   30,030 4.25 Total interest-bearing deposits  8,994,438   76,111 3.37   8,131,333   69,813 3.41 Repurchase agreements  65,253   327 2.00   66,622   354 2.11 Federal funds purchased and Federal Reserve Bank borrowings  3,525   42 4.69   300,000   3,721 4.92 Advances from FHLB  357,609   3,865 4.30   550,000   6,086 4.39 Subordinated debt  371,309   4,616 4.97   370,711   3,946 4.26 Total borrowings  797,696   8,850 4.41   1,287,333   14,107 4.35 Total interest-bearing liabilities  9,792,134   84,961 3.45   9,418,666   83,920 3.54              Noninterest-bearing demand deposits  2,813,545       2,958,254     Other liabilities  139,009       167,191     Stockholders' equity  1,617,633       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 adjustment    1,100      1,113  Net interest income   $86,086     $81,696               Interest income/earning assets     5.00%     4.92%Interest expense/earning assets     2.47      2.47 Net interest margin     2.53%     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 SubsidiariesCONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES - UNAUDITED   Year Ended December 31,   2024   2023 (Dollars in thousands and tax-equivalent) AverageBalances  Interest (1) AnnualizedAverageYield/Rate AverageBalances Interest (1) AnnualizedAverageYield/RateAssets            Commercial investor real estate loans $4,929,894  $234,402 4.75% $5,133,279  $237,976 4.64%Commercial owner-occupied real estate loans  1,740,376   84,587 4.86   1,766,839   82,049 4.64 Commercial AD&C loans  1,180,100   93,082 7.89   1,023,669   81,515 7.96 Commercial business loans  1,561,616   105,400 6.75   1,440,382   92,080 6.39 Total commercial loans  9,411,986   517,471 5.50   9,364,169   493,620 5.27 Residential mortgage loans  1,518,170   56,644 3.73   1,380,496   48,909 3.54 Residential construction loans  77,276   3,880 5.02   187,599   6,817 3.63 Consumer loans  422,260   34,189 8.10   421,963   32,946 7.81 Total residential and consumer loans  2,017,706   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 sale  14,089   1,050 7.45   12,421   896 7.21 SBA loans held for sale  165   23 14.17   —   — — Taxable securities  1,200,218   29,140 2.43   1,254,739   26,992 2.15 Tax-advantaged securities  336,913   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 banks  492,649   25,398 5.16   432,392   22,435 5.19 Federal funds sold  216   8 3.79   393   17 4.26 Total interest-earning assets  13,473,942   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 banks  81,761       93,494     Premises and equipment, net  58,571       69,886     Other assets  640,652       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 deposits  1,643,305   56,365 3.43   784,575   17,546 2.24 Money market savings deposits  2,914,712   105,847 3.63   2,974,580   93,432 3.14 Time deposits  2,588,713   115,593 4.47   2,695,232   97,973 3.64 Total interest-bearing deposits  8,627,398   303,173 3.51   7,883,606   225,028 2.85 Repurchase agreements  65,913   1,370 2.08   63,259   915 1.45 Federal funds purchased and Federal Reserve Bank borrowings  75,227   3,889 5.17   273,508   13,537 4.95 Advances from FHLB  465,164   20,259 4.36   615,082   27,709 4.50 Subordinated debt  371,085   16,455 4.43   370,487   15,785 4.26 Total borrowings  977,389   41,973 4.29   1,322,336   57,946 4.38 Total interest-bearing liabilities  9,604,787   345,146 3.59   9,205,942   282,974 3.07              Noninterest-bearing demand deposits  2,779,696       3,152,699     Other liabilities  147,856       168,762     Stockholders' equity  1,597,456       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 adjustment    4,459      4,157  Net interest income   $327,126     $354,550               Interest income/earning assets     5.02%     4.78%Interest expense/earning assets     2.56      2.11 Net interest margin     2.46%     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.

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