# EDGAR Filing Document

**Accession Number:** 0000824410
**File Stem:** 0000824410-23-000002
**Filing Date:** 2023-1
**Character Count:** 111690
**Document Hash:** e88a4c3053d01bfc49adc1d8fe8388fd
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000824410-23-000002.hdr.sgml**: 20230126

**ACCESSION NUMBER**: 0000824410-23-000002

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 44

**CONFORMED PERIOD OF REPORT**: 20230126

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Regulation FD Disclosure

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230126

**DATE AS OF CHANGE**: 20230126

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** SANDY SPRING BANCORP INC
- **CENTRAL INDEX KEY:** 0000824410
- **STANDARD INDUSTRIAL CLASSIFICATION:** NATIONAL COMMERCIAL BANKS [6021]
- **IRS NUMBER:** 521532952
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-19065
- **FILM NUMBER:** 23554215

**BUSINESS ADDRESS:**
- **STREET 1:** 17801 GEORGIA AVE
- **CITY:** OLNEY
- **STATE:** MD
- **ZIP:** 20832
- **BUSINESS PHONE:** 3017746400

**MAIL ADDRESS:**
- **STREET 1:** 17801 GEORGIA AVENUE
- **CITY:** OLNEY
- **STATE:** MD
- **ZIP:** 20832

?xml version="1.0" ? sasr-20230126

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, DC 20549**

**FORM 8-K**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

Date of Report (Date of earliest event reported): **<u>January 26, 2023</u>**

**<u>SANDY SPRING BANCORP, INC.</u>**

(Exact name of registrant as specified in its charter)

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| | | |
|:---|:---|:---|
| **<u>Maryland</u>** | **<u>000-19065</u>** | **<u>52-1532952</u>** |
| (State or other jurisdiction<br>of incorporation) | (Commission File Number) | (IRS Employer<br>Identification No.) |

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**<u>17801 Georgia Avenue, Olney, Maryland 20832</u>**

(Address of principal executive offices, including zip code)

Registrant's telephone number, including area code: **<u>(301) 774-6400</u>**

**<u>Not Applicable</u>**

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

◻ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

◻ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

◻ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

◻ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

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| | | |
|:---|:---|:---|
| Title of each class | Trading Symbol(s) | Name of exchange on which registered |
| Common Stock, par value $1.00 per share | SASR | The NASDAQ Stock Market LLC |

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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company ◻

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻

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| | |
|:---|:---|
| **Item 2.02** | **Results of Operations and Financial Condition** |

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On January 26, 2023, Sandy Spring Bancorp, Inc. (the "Company") issued a news release announcing its results of operations and financial condition for the quarter ended December 31, 2022. A copy of the news release is included as Exhibit 99.1 to this report.

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| | |
|:---|:---|
| **Item 7.01** | **Regulation FD Disclosure** |

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The Company is providing supplemental information regarding its quarterly results and related matters. A copy of the supplemental information is included as Exhibit 99.2 to this report and will be posted on the Company's website at www.sandyspringbank.com. The supplemental information is being furnished pursuant to Item 7.01 and, in accordance with General Instruction B.2 of Form 8-K, the information contained therein shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liabilities under that Section. Furthermore, the information contained in Exhibit 99.2 shall not be deemed to be incorporated by reference into the filings of the Company under the Securities Act of 1933.

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| | |
|:---|:---|
| **Item 9.01** | **Financial Statements and Exhibits** |

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| | |
|:---|:---|
| Exhibits. | Exhibits. |
| <u>Exhibit No.</u> | <u>Description</u> |
| <u>[99.1](sasr-12623xexx991earningsr.htm)</u> | Press release dated January 26, 2023 |
| <u>[99.2](a4thquarter2022supplemen.htm)</u> | Supplemental Information dated January 26, 2023 |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

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**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

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| | | |
|:---|:---|:---|
| | **SANDY SPRING BANCORP, INC.** | **SANDY SPRING BANCORP, INC.** |
|  | *(Registrant)* | *(Registrant)* |
| Date: January 26, 2023 | By: | /s/ Daniel J. Schrider |
|  |  | Daniel J. Schrider |
|  |  | President and Chief Executive Officer |

---

## Exhibit 99.1

**Exhibit 99.1**

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| | |
|:---|:---|
| ![tm2033877d1_ex99-1img01.jpg](tm2033877d1_ex99-1img01.jpg) | ***NEWS RELEASE*** |

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**FOR IMMEDIATE RELEASE**

**SANDY SPRING BANCORP REPORTS FOURTH QUARTER EARNINGS OF $34.0 MILLION**

***Company's Year Over Year Loan Growth Exceeds 14%***

OLNEY, MARYLAND, January 26, 2023 — Sandy Spring Bancorp, Inc. (Nasdaq-SASR), the parent company of Sandy Spring Bank, reported net income of $34.0 million ($0.76 per diluted common share) for the quarter ended December 31, 2022, compared to net income of $45.4 million ($0.99 per diluted common share) for the fourth quarter of 2021 and $33.6 million ($0.75 per diluted common share) for the third quarter of 2022.

Current quarter core earnings were $35.3 million ($0.79 per diluted common share), compared to $46.6 million ($1.02 per diluted common share) for the quarter ended December 31, 2021 and $35.7 million ($0.80 per diluted common share) for the quarter ended September 30, 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 or loss on disposal of assets, contingent payment expense and investment securities gains or losses. The primary drivers in the reduction in GAAP earnings and core earnings for the current period compared to the prior year quarter were the increase in the provisioning for credit losses and decline in non-interest income. The provision for credit losses for the current quarter was a charge of $10.8 million compared to a charge of $1.6 million for the fourth quarter of 2021 and a charge of $18.9 million for the third quarter of 2022.

"We are in the midst of a challenging economic environment that includes high inflation, an unprecedented interest rate environment, and a greater expectation of recession," said Daniel J. Schrider, Chairman, President and CEO of Sandy Spring Bancorp, Inc. "Despite these challenges, we are strong and remain committed to achieving long-term success for our clients and shareholders. In 2023, we will continue to focus on growing client relationships with an emphasis on core funding."

**Fourth Quarter Highlights:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• At December 31, 2022, total assets were $13.8 billion, a 10% increase compared to $12.6 billion at December 31, 2021. Excluding PPP loans, total assets increased 11% year over year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Total loans, excluding PPP loans, increased 16% to $11.4 billion at December 31, 2022 compared to $9.8 billion at December 31, 2021. Excluding PPP loans, total commercial loans grew by $1.2 billion or 15% during the previous twelve months. During this period, the Company generated gross commercial loan production of $3.9 billion, of which $2.5 billion was funded, more than offsetting $1.2 billion in non-PPP commercial loan run-off. Funded commercial loan production during the fourth quarter of 2022 was $341.7 million. Total mortgage loans grew $377.5 million during the twelve months ended December 31, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Deposits increased 3% to $11.0 billion at December 31, 2022 compared to $10.6 billion at December 31, 2021. Brokered time deposits drove a 64% increase in time deposits, which offset the year-over-year declines in all other categories of deposits. Excluding the impact of the increase in brokered time deposits, total deposits declined 4%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net interest income for the fourth quarter of 2022 grew $1.4 million or 1% compared to the fourth quarter of 2021. While loan growth resulted in interest income increasing $35.2 million, it was substantially offset by the $33.9 million growth in interest expense for the comparative periods. Excluding PPP interest and fees, net interest income increased $10.5 million or 11% for the current quarter compared to the prior year quarter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• For the fourth quarter of 2022, the net interest margin was 3.26% compared to 3.51% for the fourth quarter of 2021, and 3.53% for the third quarter of 2022. The decrease in net interest margin for the current quarter compared to the fourth quarter of the prior year and previous quarter was the result of the increase in the rate paid on interest-bearing liabilities outpacing the increase in the yield on interest-earning assets. The overall rate and yield increases were driven by the multiple federal funds rate increases that occurred over the preceding twelve months. Excluding the impact of PPP loan interest and fees and the amortization of fair value marks derived from previous acquisitions, the prior year quarter's net interest margin would have been 3.31% while the current quarter's margin remained at 3.26% and the margin for the prior quarter of the current year would have been 3.50%.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The provision for credit losses directly attributable to the funded loan portfolio was $7.9 million for the current quarter compared to the prior year quarter's provision for credit losses of $1.6 million. In addition, to the current quarter's provision for credit losses, the quarterly provision expense contained a provision charge of $2.9 million associated with unfunded loan commitments. Excluding the provision for unfunded commitments, the provision for the current quarter is a reflection of the impact of the deterioration in forecasted economic metrics and the increased probability of a recession.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The current quarter's non-interest income decreased by 37% or $8.2 million compared to the prior year quarter. The decrease represents the cumulative result of the impact of the economic environment on mortgage banking activities and wealth management income, the decline in insurance commission income as a result of the disposition of the Company's insurance business during the second quarter of 2022 and lower bank card income due to regulatory restrictions on transaction fees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Non-interest expense for the current quarter decreased $1.8 million or 3% compared to the prior year quarter, driven primarily by decreases of $2.1 million in compensation and benefits expense, $1.0 million in occupancy expense and $0.5 million in other non-interest expense. These decreases were partially offset by increases in various other categories of operating expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Reflecting the impact of the increased provisioning for credit losses and the decline in non-interest income, return on average assets ("ROA") for the quarter ended December 31, 2022 was 0.98% and return on average tangible common equity ("ROTCE") was 12.53% compared to 1.41% and 16.07%, respectively, for the fourth quarter of 2021. On a non-GAAP basis, the current quarter's core ROA was 1.02% and core ROTCE was 13.02% compared to core ROA of 1.44% and core ROTCE of 16.49% for the fourth quarter of 2021.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• For the fourth quarter of 2022, the GAAP efficiency ratio was 53.23% compared to 51.75% for the fourth quarter of 2021, and 50.66% for the third quarter of 2022. The non-GAAP efficiency ratio for the fourth quarter of 2022 was 51.46% compared to 50.17% for the prior year quarter, and 48.18% for the third quarter of 2022.

**Balance Sheet and Credit Quality**

Total assets grew 10% to $13.8 billion at December 31, 2022, as compared to $12.6 billion at December 31, 2021. During this period, total loans grew by 14% to $11.4 billion at December 31, 2022, compared to $10.0 billion at December 31, 2021. At December 31, 2022, excluding PPP loans, total assets grew 11% and total loans grew 16% compared to December 31, 2021. Total commercial loans, excluding PPP loans, grew by $1.2 billion or 15% during the past twelve months. During this period, the Company generated commercial gross loan production of $3.9 billion, of which $2.5 billion was funded, offsetting $1.2 billion in non-PPP commercial loan payment activity. During the fourth quarter of 2022, funded commercial loan production was $341.7 million. The growth in the commercial portfolio, excluding PPP loans, occurred in all commercial portfolios led by the $1.0 billion or 24% growth in the investor owned commercial real estate portfolio. Year-over-year the total residential mortgage loan portfolio grew 37%, as a greater number of conventional 1-4 family mortgage and one-year ARM loans were retained to grow the portfolio. Deposits grew 3% during the preceding twelve months as interest-bearing deposits grew 6%, offset by a 3% decline in noninterest-bearing deposits. During the period, time deposits increased 64% driven by brokered deposits while money market accounts decreased 6%, savings accounts decreased 4% and interest-bearing demand accounts declined 11%. Excluding the impact of the increase in brokered deposits, total deposits decreased 4%. The decrease in noninterest-bearing deposits was driven by a decline in deposits maintained by title companies as mortgage activity slowed throughout the year. In addition, borrowings increased by $928.4 million during the period.

The tangible common equity ratio decreased to 8.18% of tangible assets at December 31, 2022, compared to 9.21% at December 31, 2021 as common equity was negatively impacted by the $123.4 million increase in the accumulated other comprehensive loss in the investment portfolio that resulted from the rising rate environment and the increase in tangible assets during the past year and, to a lesser extent, the $25.0 million repurchase of common shares during the previous twelve months. At December 31, 2022, the Company had a total risk-based capital ratio of 14.20%, a common equity tier 1 risk-based capital ratio of 10.23%, a tier 1 risk-based capital ratio of 10.23%, and a tier 1 leverage ratio of 9.33%.

Non-performing loans include non-accrual loans, accruing loans 90 days or more past due and restructured loans. Credit quality improved at December 31, 2022 compared to December 31, 2021, as the level of non-performing loans to total loans declined to 0.35% compared to 0.49%. These levels of non-performing loans compare to 0.40% for the prior quarter and indicate stable credit quality during a year of significant loan growth and economic uncertainty. At December 31, 2022, non-performing loans totaled $39.4 million, compared to $48.8 million at December 31, 2021, and $44.5 million at September 30, 2022. Loans placed on non-accrual during the current quarter amounted to $5.5 million compared to $0.5 million for the prior year quarter and $4.2 million

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for the third quarter of 2022. During the current quarter, the Company successfully resolved several large non-accrual relationships for a total pay-off of $9.5 million without incurring any charge-offs. The Company realized net recoveries of $0.1 million for the fourth quarter of 2022, as compared to net charge-offs of $0.4 million for the fourth quarter of 2021 and $0.5 million in recoveries for the third quarter of 2022.

At December 31, 2022, the allowance for credit losses was $136.2 million or 1.20% of outstanding loans and 346% of non-performing loans, compared to $128.3 million or 1.14% of outstanding loans and 289% of non-performing loans at the end of the previous quarter and $109.1 million or 1.10% of outstanding loans and 224% of non-performing loans at the end of 2021. The increase in the allowance during the current quarter compared to the previous quarter was primarily due to the impact of forecasted economic factors and an increase in the probability of an economic recession.

**Income Statement Review**

*Quarterly Results*

Net income was $34.0 million for the three months ended December 31, 2022 compared to net income of $45.4 million for the prior year quarter. The decline in the comparative quarter earnings was the result of the current quarter's increase in the provision for credit losses compared to the prior year's provision, coupled with a decrease in non-interest income. The decline in non-interest income was the result of the combination of lower mortgage banking income, a decline in wealth management income, reduced insurance commission income due to the impact of the sale of the Company's insurance business in the second quarter of 2022 and lower bank card fees resulting from the implementation of applicable regulations. Non-interest expense decreased 3% primarily as a result of the decline in compensation costs, occupancy costs and other expenses in the current quarter compared to the prior year quarter. Current quarter core earnings were $35.3 million ($0.79 per diluted common share), compared to $46.6 million ($1.02 per diluted common share) for the quarter ended December 31, 2021 and $35.7 million ($0.80 per diluted common share) for the quarter ended September 30, 2022.

Net interest income increased $1.4 million for the fourth quarter of 2022 compared to the fourth quarter of 2021. During the past twelve months, loan growth coupled with the rising interest rate environment was primarily responsible for a $35.2 million increase in interest income. This growth in interest income was substantially offset by the $33.9 million growth in interest expense as funding costs have also risen in response to the current year's rising rate environment. During the period, interest and fees on PPP loans declined by $9.1 million. Excluding this decline, net interest income grew 11% in the current year quarter compared to the prior year quarter, driven predominantly by interest income growth in all categories of commercial loans and, to a lesser degree, increases in residential mortgage loans, consumer loans and investment securities income. Interest expense grew due to the rising cost of interest-bearing deposits, primarily time and money market deposits, and the growth and cost of borrowings in the current year period compared to the same period of the prior year. The net interest margin for the fourth quarter of 2022 was 3.26% as compared to 3.51% for the same quarter of the prior year, as the yield on interest-earning assets, which rose 76 basis points, was offset by the 159 basis point rise in the rate paid on interest-bearing liabilities. Excluding the impact of PPP interest and fee income, in addition to the amortization of fair value marks associated with previous acquisitions, the net interest margin for the prior year quarter would have been 3.31% compared to the current quarter's 3.26%.

The total provision for credit losses was a charge of $10.8 million for the fourth quarter of 2022 compared to a charge of $1.6 million for the fourth quarter of 2021 and $18.9 million for the previous quarter. The provision for credit losses directly attributable to the funded loan portfolio was $7.9 million for the current quarter compared to the prior year quarter's provision for credit losses of $1.6 million and $14.1 million for the third quarter of 2022. The current quarter's provision expense also contained a charge to the provision of $2.9 million associated with an increase in unfunded loan commitments compared to $4.8 million for the prior quarter. Excluding the provision for unfunded commitments, the provision for the current quarter reflects the impact of the deterioration in forecasted economic metrics coupled with the increased probability of a recession.

For the fourth quarter of 2022, non-interest income decreased $8.2 million or 37% compared to the prior year quarter. The decline reflects the cumulative result of the decrease in income from mortgage banking activities reflecting the impact of the economic environment, lower wealth management income driven by market performance, the decline in insurance commission income as a result of the second quarter's disposition of the Company's insurance business, and reduced bank card income due to regulatory restrictions on fee recognition.

Non-interest expense decreased $1.8 million or 3% for the fourth quarter of 2022, compared to the prior year quarter, as a result of a decline in compensation and benefits costs, occupancy expense and other non-interest expenses. Compensation and benefits costs during the comparative period was $2.1 million lower as a result of decreases in commission and incentive payments and reduced employee benefit costs, primarily pension and health insurance costs. Occupancy expense declined $1.0 million due to

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lower depreciation and rental expense as a result of fewer office locations during the preceding twelve months. The impact of these reductions was offset by operating cost increases in most of the remaining categories of non-interest expense.

For the fourth quarter of 2022, the GAAP efficiency ratio was 53.23% compared to 51.75% for the fourth quarter of 2021, and 50.66% for the third quarter of 2022. The increase in the GAAP efficiency ratio was primarily the result of the 5% decrease in GAAP revenue compared to the 3% decrease in GAAP non-interest expense during the comparative period. The non-GAAP efficiency ratio was 51.46% for the current quarter as compared to 50.17% for the fourth quarter of 2021, and 48.18% for the third quarter of 2022. The increase in the non-GAAP efficiency ratio (reflecting a decrease in efficiency) from the fourth quarter of the prior year to the current year quarter was primarily the result of the 5% decline in non-GAAP revenue, driven chiefly by the decrease in non-GAAP non-interest income, while non-GAAP expenses declined 2%. ROA for the fourth quarter ended December 31, 2022 was 0.98% and ROTCE was 12.53% compared to 0.99% and 12.10%, respectively, for the third quarter of 2022. On a non-GAAP basis, the current quarter's core ROA was 1.02% and core ROTCE was 13.02% compared to core ROA of 1.05% and core ROTCE of 12.86% for the third quarter of 2022.

*Year-to-Date Results*

The Company recorded net income of $166.3 million for the year ended December 31, 2022 compared to net income of $235.1 million for the prior year. Year-to-date earnings declined as a result of the provision for loan losses, which shifted from the significant credit in the prior year to the charge for the current year, the decline in most categories of non-interest income, which was partially mitigated by the impact of the sale of the insurance business, and the flattening of net interest income as the growth in interest expense significantly offset the increase in interest income. Core earnings were $160.3 million for the year ended December 31, 2022 compared to $246.7 million for the prior year. Core earnings for the current year compared to the prior year were reduced primarily as a result of the activity associated with the provision for credit losses, in addition to the decline in mortgage banking income, elimination of insurance agency commissions in the second half of the year and lower other non-interest income.

For the year ended December 31, 2022, net interest income increased $2.5 million compared to the prior year as a result of the $45.4 million increase in interest income, despite the $39.9 million reduction in PPP interest and fees, offset by the $42.9 million increase in interest expense. Excluding the impact of interest and fees on PPP loans, tax-equivalent interest income grew 21%, driven by non-PPP commercial loans which increased 22% compared to the prior year. The increase in interest expense was primarily the result of additional interest expense associated with money market and time deposit accounts and, to a lesser degree, FHLB borrowings and the subordinated debt issued in March 2022. The net interest margin declined to 3.44% for the year ended December 31, 2022, compared to 3.56% for the prior year. Excluding the impact of PPP interest and fees and the amortization of the fair value marks, the net interest margin for the year ended December 31, 2022 would have been 3.40% compared to 3.38% for the prior year.

The provision for credit losses for the year ended December 31, 2022 amounted to a charge of $34.4 million as compared to a credit of $45.6 million for 2021. The provision for credit losses for the year ended December 31, 2022 was a reflection of the growth in the loan portfolio, coupled with the management's consideration of the potential impact of current recessionary pressures and other portfolio qualitative metrics. The credit to the provision for credit losses for the prior year was a reflection of the net impact of forecasted economic metrics during 2021 and other factors applied in the determination of the allowance.

For the year ended December 31, 2022, non-interest income, which included a $16.7 million gain on the disposal of assets, decreased 15% to $87.0 million compared to $102.1 million for 2021. Excluding the gain, non-interest income decreased 31% driven by a 75% decline in income from mortgage banking activities, a 58% decline in insurance commission income, reduced bank card income of 36% and a 43% decline in other income. The decline in income from mortgage banking activities is the result of the rising interest rate environment, which continues to dampen mortgage origination and refinancing activity. Wealth management income declined reflecting volatility and asset value erosion in the marketplace. Insurance commission income declined due to the disposition of the Company's insurance business during the year. Fees from bank cards diminished as a result of regulatory restrictions on fee recognition effective in the second quarter of the current year. Other income declined from the prior year as a result of the decline in credit related fees, the inclusion in 2021 of the impact from the full payoff of a purchased credit deteriorated loan and activity-based vendor incentives. Service charge income grew modestly as a result of increased customer activity.

Non-interest expense decreased 1% to $257.3 million for the year ended December 31, 2022, compared to $260.5 million for 2021. Excluding merger, acquisition and disposal expense from the current and prior year periods, the earn-out accrual associated with the performance of the 2020 acquisition of Rembert Pendleton Jackson and the $9.1 million in prepayment penalties on FHLB borrowings that occurred in the prior year, non-interest expense increased 1% year-over-year. The drivers of the increase in non-interest expense were a 2% increase in salaries and benefits and an 8% increase in other expense, excluding the FHLB prepayment penalties and the earn-out expense. The year-over-year increase in salaries and benefits was the result of staffing

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increases, salary adjustments and other increased benefit costs. The rise in other non-interest expense was driven by increased costs in other various categories of operating expenses. Marketing costs increased 10% as a result of specific initiatives and outside data services increased 14% as a result of transaction volumes, while professional fees and service costs decreased 11% for the period due to a reduction in the utilization of consultant services. Combined occupancy and equipment expense was lower by 4% as a result of lower depreciation and rental expense, which exceeded higher software related expenses.

For the year ended December 31, 2022, the GAAP efficiency ratio was 50.05% compared to 49.47% for the same period in 2021. The non-GAAP efficiency ratio for the current year was 49.66% compared to the 46.17% for the prior year. The growth in the current year's non-GAAP efficiency ratio compared to the prior year, indicating a decline in efficiency, was the result of the 5% decrease in non-GAAP revenue combined with the 2% 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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Tangible common equity and related measures are non-GAAP measures that exclude the impact of goodwill and other intangible assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The non-GAAP efficiency ratio excludes amortization of intangible assets, loss on FHLB redemption, gain on disposal of assets, contingent payment expense, merger, acquisition and disposal expense and investment securities gains and includes tax-equivalent income.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 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, contingent payment expense, 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 fourth 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: 970945. 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 February 9, 2023. A replay of the teleconference will be available through the same time period by calling 1-866-813-9403 under conference call number 813195.

**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

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For additional information or questions, please contact:

Daniel J. Schrider, Chairman, 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 significant risks and uncertainties that may cause actual results to differ materially from those in such statements. These risks and uncertainties include, but are not limited to, the risks identified in our quarterly and annual reports and the following: changes in general business and economic conditions nationally or in the markets that we serve; changes in consumer and business confidence, investor sentiment, or consumer spending or savings behavior; changes in the level of inflation; changes in the demand for loans, deposits and other financial services that we provide; the possibility that future credit losses may be higher than currently expected; the impact of the interest rate environment on our business, financial condition and results of operations; the impact of compliance with changes in laws, regulations and regulatory interpretations, including changes in income taxes; changes in credit ratings assigned to us or our subsidiaries; the ability to realize benefits and cost savings from, and limit any unexpected liabilities associated with, any business combinations; competitive pressures among financial services companies; the ability to attract, develop and retain qualified employees; our ability to maintain the security of our data processing and information technology systems; the impact of changes in accounting policies, including the introduction of new accounting standards; the impact of judicial or regulatory proceedings; the impact of fiscal and governmental policies of the United States federal government; the impact of health emergencies, epidemics or pandemics; the effects of climate change; and the impact of natural disasters, extreme weather events, military conflict, terrorism or other geopolitical events. Sandy Spring Bancorp provides greater detail regarding some of these factors in its Form 10-K for the year ended December 31, 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.

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**Sandy Spring Bancorp, Inc. and Subsidiaries** 

**FINANCIAL HIGHLIGHTS - UNAUDITED**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | Three Months Ended<br>December 31, | Three Months Ended<br>December 31, | %<br>Change | Year Ended<br>December 31, | Year Ended<br>December 31, | %<br>Change |
| *(Dollars in thousands, except per share data)* | **2022** | 2021 | %<br>Change | **2022** | 2021 | %<br>Change |
| **Results of operations:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net interest income | $**106643** | $105268 | 1% | $**427004** | $424518 | 1% |
| &nbsp;&nbsp;&nbsp;Provision/ (credit) for credit losses | **10801** | 1585 | N/M | **34372** | (45556) | N/M |
| &nbsp;&nbsp;&nbsp;Non-interest income | **14297** | 22536 | (37) | **87019** | 102055 | (15) |
| &nbsp;&nbsp;&nbsp;Non-interest expense | **64375** | 66141 | (3) | **257293** | 260470 | (1) |
| &nbsp;&nbsp;&nbsp;Income before income tax expense | **45764** | 60078 | (24) | **222358** | 311659 | (29) |
| &nbsp;&nbsp;&nbsp;Net income | **33980** | 45404 | (25) | **166299** | 235107 | (29) |
| &nbsp;&nbsp;&nbsp;Net income attributable to common shareholders | $**33866** | $45114 | (25) | $**165618** | $233599 | (29) |
| &nbsp;&nbsp;Pre-tax pre-provision net income <sup>(1)</sup> | $**56565** | $61663 | (8) | $**256730** | $266103 | (4) |
| &nbsp;&nbsp;&nbsp;Return on average assets | **0.98%** | 1.41% |  | **1.26%** | 1.83% |  |
| &nbsp;&nbsp;&nbsp;Return on average common equity | **9.23%** | 11.87% |  | **11.23%** | 15.48% |  |
| &nbsp;&nbsp;Return on average tangible common equity <sup>(1)</sup> | **12.53%** | 16.07% |  | **15.24%** | 21.01% |  |
| &nbsp;&nbsp;&nbsp;Net interest margin | **3.26%** | 3.51% |  | **3.44%** | 3.56% |  |
| &nbsp;&nbsp;Efficiency ratio - GAAP basis <sup>(2)</sup> | **53.23%** | 51.75% |  | **50.05%** | 49.47% |  |
| &nbsp;&nbsp;Efficiency ratio - Non-GAAP basis <sup>(2)</sup> | **51.46%** | 50.17% |  | **49.66%** | 46.17% |  |
| **Per share data:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic net income per common share | $**0.76** | $0.99 | (23)% | $**3.69** | $5.00 | (26)% |
| &nbsp;&nbsp;&nbsp;Diluted net income per common share | $**0.76** | $0.99 | (24) | $**3.68** | $4.98 | (26) |
| &nbsp;&nbsp;&nbsp;Weighted average diluted common shares | **44828827** | 45655924 | (2) | **45039022** | 46899085 | (4) |
| &nbsp;&nbsp;&nbsp;Dividends declared per share | $**0.34** | $0.32 | 6 | $**1.36** | $1.28 | 6 |
| &nbsp;&nbsp;&nbsp;Book value per common share | $**33.23** | $33.68 | (1) | $**33.23** | $33.68 | (1) |
| &nbsp;&nbsp;Tangible book value per common share <sup>(1)</sup> | $**24.64** | $24.90 | (1) | $**24.64** | $24.90 | (1) |
| &nbsp;&nbsp;&nbsp;Outstanding common shares | **44657054** | 45118930 | (1) | **44657054** | 45118930 | (1) |
| **Financial condition at period-end:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Investment securities | $**1543208** | $1507062 | 2% | $**1543208** | $1507062 | 2% |
| &nbsp;&nbsp;&nbsp;Loans | **11396706** | 9967091 | 14 | **11396706** | 9967091 | 14 |
| &nbsp;&nbsp;&nbsp;Assets | **13833119** | 12590726 | 10 | **13833119** | 12590726 | 10 |
| &nbsp;&nbsp;&nbsp;Deposits | **10953421** | 10624731 | 3 | **10953421** | 10624731 | 3 |
| &nbsp;&nbsp;&nbsp;Stockholders' equity | **1483768** | 1519679 | (2) | **1483768** | 1519679 | (2) |
| **Capital ratios:** |  |  |  |  |  |  |
| &nbsp;&nbsp;Tier 1 leverage <sup>(3)</sup> | **9.33%** | 9.26% |  | **9.33%** | 9.26% |  |
| &nbsp;&nbsp;Common equity tier 1 capital to risk-weighted assets <sup>(3)</sup> | **10.23%** | 11.91% |  | **10.23%** | 11.91% |  |
| &nbsp;&nbsp;Tier 1 capital to risk-weighted assets <sup>(3)</sup> | **10.23%** | 11.91% |  | **10.23%** | 11.91% |  |
| &nbsp;&nbsp;Total regulatory capital to risk-weighted assets <sup>(3)</sup> | **14.20%** | 14.59% |  | **14.20%** | 14.59% |  |
| &nbsp;&nbsp;Tangible common equity to tangible assets <sup>(4)</sup> | **8.18%** | 9.21% |  | **8.18%** | 9.21% |  |
| &nbsp;&nbsp;&nbsp;Average equity to average assets | **10.61%** | 11.87% |  | **11.20%** | 11.85% |  |
| **Credit quality ratios:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Allowance for credit losses to loans | **1.20%** | 1.10% |  | **1.20%** | 1.10% |  |
| &nbsp;&nbsp;&nbsp;Non-performing loans to total loans | **0.35%** | 0.49% |  | **0.35%** | 0.49% |  |
| &nbsp;&nbsp;&nbsp;Non-performing assets to total assets | **0.29%** | 0.40% |  | **0.29%** | 0.40% |  |
| &nbsp;&nbsp;&nbsp;Allowance for credit losses to non-performing loans | **346.15%** | 223.61% |  | **346.15%** | 223.61% |  |
| &nbsp;&nbsp;Annualized net charge-offs to average loans <sup>(5)</sup> | **— %** | 0.01% |  | **— %** | 0.11% |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)Represents a non-GAAP measure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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, contingent payment expense, 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)Estimated ratio at December 31, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)Calculation utilizes average loans, excluding residential mortgage loans held-for-sale.

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**Sandy Spring Bancorp, Inc. and Subsidiaries** 

**RECONCILIATION TABLE - UNAUDITED (CONTINUED)**

**OPERATING EARNINGS - METRICS**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended<br>December 31, | Three Months Ended<br>December 31, | Year Ended<br>December 31, | Year Ended<br>December 31, |
| *(Dollars in thousands)* | **2022** | 2021 | **2022** | 2021 |
| **Core earnings (non-GAAP):** |  |  |  |  |
| Net income (GAAP) | $**33980** | $45404 | $**166299** | $235107 |
| Plus/ (less) non-GAAP adjustments (net of tax)<sup>(1)</sup>: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Merger, acquisition and disposal expense | **—** |  | **796** | 33 |
| &nbsp;&nbsp;&nbsp;Amortization of intangible assets | **1049** | 1197 | **4333** | 4908 |
| &nbsp;&nbsp;&nbsp;Loss on FHLB redemption | **—** |  | **—** | 6779 |
| &nbsp;&nbsp;&nbsp;Gain on disposal of assets | **—** |  | **(12309)** |  |
| &nbsp;&nbsp;&nbsp;Investment securities (gains)/ losses | **293** | (26) | **257** | (158) |
| &nbsp;&nbsp;&nbsp;Contingent payment expense | **—** | **—** | **929** | **—** |
| Core earnings (Non-GAAP) | $**35322** | $46575 | $**160305** | $246669 |
| **Core earnings per diluted common share (non-GAAP):** |  |  |  |  |
| Weighted average common shares outstanding - diluted (GAAP) | **44828827** | 45655924 | **45039022** | 46899085 |
| Earnings per diluted common share (GAAP) | $**0.76** | $0.99 | $**3.68** | $4.98 |
| Core earnings per diluted common share (non-GAAP) | $**0.79** | $1.02 | $**3.56** | $5.26 |
| **Core return on average assets (non-GAAP):** |  |  |  |  |
| Average assets (GAAP) | $**13769472** | $12791526 | $**13218824** | $12818202 |
| Return on average assets (GAAP) | **0.98%** | 1.41% | **1.26%** | 1.83% |
| Core return on average assets (non-GAAP) | **1.02%** | 1.44% | **1.21%** | 1.92% |
| **Core return on average tangible common equity (non-GAAP):** |  |  |  |  |
| Average total stockholders' equity (GAAP) | $**1460254** | $1517793 | $**1480198** | $1518607 |
| &nbsp;&nbsp;&nbsp;Average goodwill | **(363436)** | (370223) | **(366244)** | (370223) |
| &nbsp;&nbsp;&nbsp;Average other intangible assets, net | **(20739)** | (26954) | **(23009)** | (29403) |
| Average tangible common equity (non-GAAP) | $**1076079** | $1120616 | $**1090945** | $1118981 |
| Return on average tangible common equity (non-GAAP) | **12.53%** | 16.07% | **15.24%** | 21.01% |
| Core return on average tangible common equity (non-GAAP) | **13.02%** | 16.49% | **14.69%** | 22.04% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Tax adjustments have been determined using the combined marginal federal and state rate of 25.47% and 25.64% for 2022 and 2021, respectively.

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**Sandy Spring Bancorp, Inc. and Subsidiaries** 

**RECONCILIATION TABLE - UNAUDITED**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended<br>December 31, | Three Months Ended<br>December 31, | Year Ended<br>December 31, | Year Ended<br>December 31, |
| *(Dollars in thousands)* | **2022** | 2021 | **2022** | 2021 |
| **Pre-tax pre-provision net income:** |  |  |  |  |
| Net income (GAAP) | $**33980** | $45404 | $**166299** | $235107 |
| &nbsp;&nbsp;&nbsp;Plus/ (less) non-GAAP adjustments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax expense | **11784** | 14674 | **56059** | 76552 |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision/ (credit) for credit losses | **10801** | 1585 | **34372** | (45556) |
| Pre-tax pre-provision net income (non-GAAP) | $**56565** | $61663 | $**256730** | $266103 |
| **Efficiency ratio (GAAP):** |  |  |  |  |
| Non-interest expense | $**64375** | $66141 | $**257293** | $260470 |
| Net interest income plus non-interest income | $**120940** | $127804 | $**514023** | $526573 |
| **Efficiency ratio (GAAP)** | **53.23%** | 51.75% | **50.05%** | 49.47% |
| **Efficiency ratio (Non-GAAP):** |  |  |  |  |
| Non-interest expense | $**64375** | $66141 | $**257293** | $260470 |
| &nbsp;&nbsp;&nbsp;Less non-GAAP adjustments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of intangible assets | **1408** | 1609 | **5814** | 6600 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on FHLB redemption | **—** |  | **—** | 9117 |
| &nbsp;&nbsp;&nbsp;&nbsp;Merger, acquisition and disposal expense | **—** |  | **1068** | 45 |
| &nbsp;&nbsp;&nbsp;&nbsp;Contingent payment expense | **—** |  | **1247** |  |
| Non-interest expense - as adjusted | $**62967** | $64532 | $**249164** | $244708 |
| Net interest income plus non-interest income | $**120940** | $127804 | $**514023** | $526573 |
| &nbsp;&nbsp;&nbsp;Plus non-GAAP adjustment: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Tax-equivalent income | **1032** | 862 | **3841** | 3703 |
| &nbsp;&nbsp;&nbsp;Less/ (plus) non-GAAP adjustment: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Investment securities gains/ (losses) | **(393)** | 34 | **(345)** | 212 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on disposal of assets | **—** |  | **16516** |  |
| Net interest income plus non-interest income - as adjusted | $**122365** | $128632 | $**501693** | $530064 |
| **Efficiency ratio (Non-GAAP)** | **51.46%** | 50.17% | **49.66%** | 46.17% |
| **Tangible common equity ratio:** |  |  |  |  |
| Total stockholders' equity | $**1483768** | $1519679 | $**1483768** | $1519679 |
| &nbsp;&nbsp;&nbsp;Goodwill | **(363436)** | (370223) | **(363436)** | (370223) |
| &nbsp;&nbsp;&nbsp;Other intangible assets, net | **(19855)** | (25920) | **(19855)** | (25920) |
| Tangible common equity | $**1100477** | $1123536 | $**1100477** | $1123536 |
| Total assets | $**13833119** | $12590726 | $**13833119** | $12590726 |
| &nbsp;&nbsp;&nbsp;Goodwill | **(363436)** | (370223) | **(363436)** | (370223) |
| &nbsp;&nbsp;&nbsp;Other intangible assets, net | **(19855)** | (25920) | **(19855)** | (25920) |
| Tangible assets | $**13449828** | $12194583 | $**13449828** | $12194583 |
| **Tangible common equity ratio** | **8.18%** | 9.21% | **8.18%** | 9.21% |
| Outstanding common shares | **44657054** | 45118930 | **44657054** | 45118930 |
| Tangible book value per common share | $**24.64** | $24.90 | $**24.64** | $24.90 |

---

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**Sandy Spring Bancorp, Inc. and Subsidiaries**

**CONDENSED CONSOLIDATED STATEMENTS OF CONDITION - UNAUDITED**

---

| | | |
|:---|:---|:---|
| *(Dollars in thousands)* | **December 31,<br>2022** | December 31,<br>2021 |
| **Assets** |  |  |
| &nbsp;&nbsp;&nbsp;Cash and due from banks | $**88152** | $65630 |
| &nbsp;&nbsp;&nbsp;Federal funds sold | **193** | 312 |
| &nbsp;&nbsp;&nbsp;Interest-bearing deposits with banks | **103887** | 354078 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | **192232** | 420020 |
| &nbsp;&nbsp;&nbsp;Residential mortgage loans held for sale (at fair value) | **11706** | 39409 |
| &nbsp;&nbsp;&nbsp;Investments held-to-maturity (fair value of $220,123) | **259452** |  |
| &nbsp;&nbsp;&nbsp;Investments available-for-sale (at fair value) | **1214538** | 1465896 |
| &nbsp;&nbsp;&nbsp;Other investments, at cost | **69218** | 41166 |
| &nbsp;&nbsp;&nbsp;Total loans | **11396706** | 9967091 |
| &nbsp;&nbsp;&nbsp;&nbsp;Less: allowance for credit losses - loans | **(136242)** | (109145) |
| &nbsp;&nbsp;&nbsp;Net loans | **11260464** | 9857946 |
| &nbsp;&nbsp;&nbsp;Premises and equipment, net | **67070** | 59685 |
| &nbsp;&nbsp;&nbsp;Other real estate owned | **645** | 1034 |
| &nbsp;&nbsp;&nbsp;Accrued interest receivable | **41172** | 34349 |
| &nbsp;&nbsp;&nbsp;Goodwill | **363436** | 370223 |
| &nbsp;&nbsp;&nbsp;Other intangible assets, net | **19855** | 25920 |
| &nbsp;&nbsp;&nbsp;Other assets | **333331** | 275078 |
| **Total assets** | $**13833119** | $12590726 |
| **Liabilities** |  |  |
| &nbsp;&nbsp;Noninterest-bearing deposits | $**3673300** | $3779630 |
| &nbsp;&nbsp;&nbsp;Interest-bearing deposits | **7280121** | 6845101 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total deposits | **10953421** | 10624731 |
| &nbsp;&nbsp;&nbsp;Securities sold under retail repurchase agreements and federal funds purchased | **321967** | 141086 |
| &nbsp;&nbsp;&nbsp;Advances from FHLB | **550000** |  |
| &nbsp;&nbsp;&nbsp;Subordinated debt | **370205** | 172712 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total borrowings | **1242172** | 313798 |
| &nbsp;&nbsp;&nbsp;Accrued interest payable and other liabilities | **153758** | 132518 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | **12349351** | 11071047 |
| **Stockholders' equity** |  |  |
| &nbsp;&nbsp;Common stock -- par value $1.00; shares authorized 100,000,000; shares issued and outstanding 44,657,054 and 45,118,930 at December 31, 2022 and December 31, 2021, respectively | **44657** | 45119 |
| &nbsp;&nbsp;&nbsp;Additional paid in capital | **734273** | 751072 |
| &nbsp;&nbsp;&nbsp;Retained earnings | **836789** | 732027 |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss | **(131951)** | (8539) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | **1483768** | 1519679 |
| **Total liabilities and stockholders' equity** | $**13833119** | $12590726 |

---

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**Sandy Spring Bancorp, Inc. and Subsidiaries**

**CONDENSED CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Three Months Ended<br>December 31, | Three Months Ended<br>December 31, | Year Ended<br>December 31, | Year Ended<br>December 31, |
| *(Dollars in thousands, except per share data)* | **2022** | 2021 | **2022** | 2021 |
| **Interest income:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest and fees on loans | $**135079** | $103589 | $**462121** | $423152 |
| &nbsp;&nbsp;&nbsp;Interest on loans held for sale | **234** | 271 | **738** | 1736 |
| &nbsp;&nbsp;&nbsp;Interest on deposits with banks | **1427** | 330 | **2672** | 725 |
| &nbsp;&nbsp;&nbsp;Interest and dividends on investment securities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Taxable | **6047** | 3888 | **20519** | 16118 |
| &nbsp;&nbsp;&nbsp;&nbsp;Tax-advantaged | **2509** | 1992 | **9609** | 8552 |
| &nbsp;&nbsp;&nbsp;Interest on federal funds sold | **4** | 1 | **8** | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest income | **145300** | 110071 | **495667** | 450284 |
| **Interest Expense:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest on deposits | **28276** | 2820 | **43854** | 15022 |
| &nbsp;&nbsp;Interest on retail repurchase agreements and federal funds purchased | **1697** | 43 | **2929** | 182 |
| &nbsp;&nbsp;&nbsp;Interest on advances from FHLB | **4759** |  | **7825** | 2649 |
| &nbsp;&nbsp;&nbsp;Interest on subordinated debt | **3925** | 1940 | **14055** | 7913 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest expense | **38657** | 4803 | **68663** | 25766 |
| **Net interest income** | **106643** | 105268 | **427004** | 424518 |
| Provision/ (credit) for credit losses | **10801** | 1585 | **34372** | (45556) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net interest income after provision/ (credit) for credit losses | **95842** | 103683 | **392632** | 470074 |
| **Non-interest income:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Investment securities gains/ (losses) | **(393)** | 34 | **(345)** | 212 |
| &nbsp;&nbsp;&nbsp;Gain on disposal of assets | **—** |  | **16516** |  |
| &nbsp;&nbsp;&nbsp;Service charges on deposit accounts | **2419** | 2305 | **9803** | 8241 |
| &nbsp;&nbsp;&nbsp;Mortgage banking activities | **783** | 3622 | **6130** | 24509 |
| &nbsp;&nbsp;&nbsp;Wealth management income | **8472** | 9598 | **35774** | 36841 |
| &nbsp;&nbsp;&nbsp;Insurance agency commissions | **—** | 1332 | **2927** | 7017 |
| &nbsp;&nbsp;&nbsp;Income from bank owned life insurance | **950** | 819 | **3141** | 3022 |
| &nbsp;&nbsp;&nbsp;Bank card fees | **463** | 1818 | **4379** | 6896 |
| &nbsp;&nbsp;&nbsp;Other income | **1603** | 3008 | **8694** | 15317 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total non-interest income | **14297** | 22536 | **87019** | 102055 |
| **Non-interest expense:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Salaries and employee benefits | **39455** | 41535 | **158504** | 155830 |
| &nbsp;&nbsp;&nbsp;Occupancy expense of premises | **4728** | 5693 | **19255** | 22405 |
| &nbsp;&nbsp;&nbsp;Equipment expenses | **3859** | 3427 | **14779** | 12883 |
| &nbsp;&nbsp;&nbsp;Marketing | **1354** | 1090 | **5197** | 4730 |
| &nbsp;&nbsp;&nbsp;Outside data services | **2707** | 2123 | **10199** | 8983 |
| &nbsp;&nbsp;&nbsp;FDIC insurance | **1462** | 991 | **4792** | 4294 |
| &nbsp;&nbsp;&nbsp;Amortization of intangible assets | **1408** | 1609 | **5814** | 6600 |
| &nbsp;&nbsp;&nbsp;Merger, acquisition and disposal expense | **—** |  | **1068** | 45 |
| &nbsp;&nbsp;&nbsp;Professional fees and services | **2573** | 2381 | **9169** | 10308 |
| &nbsp;&nbsp;&nbsp;Other expenses | **6829** | 7292 | **28516** | 34392 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total non-interest expense | **64375** | 66141 | **257293** | 260470 |
| Income before income tax expense | **45764** | 60078 | **222358** | 311659 |
| Income tax expense | **11784** | 14674 | **56059** | 76552 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Net income** | $**33980** | $45404 | $**166299** | $235107 |
| **Net income per share amounts:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic net income per common share | $**0.76** | $0.99 | $**3.69** | $5.00 |
| &nbsp;&nbsp;&nbsp;Diluted net income per common share | $**0.76** | $0.99 | $**3.68** | $4.98 |
| &nbsp;&nbsp;&nbsp;Dividends declared per share | $**0.34** | $0.32 | $**1.36** | $1.28 |

---

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**Sandy Spring Bancorp, Inc. and Subsidiaries**

**HISTORICAL TRENDS - QUARTERLY FINANCIAL DATA - UNAUDITED**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **2022** | **2022** | **2022** | **2022** | 2021 | 2021 | 2021 | 2021 |
| *(Dollars in thousands, except per share data)* | **Q4** | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 |
| **Profitability for the quarter:** |  |  |  |  |  |  |  |  |
| Tax-equivalent interest income | $**146332** | $131373 | $114901 | $106902 | $110933 | $112060 | $115753 | $115241 |
| Interest expense&nbsp;&nbsp;&nbsp;&nbsp; | **38657** | 17462 | 7959 | 4585 | 4803 | 4525 | 6777 | 9661 |
| &nbsp;&nbsp;&nbsp;Tax-equivalent net interest income | **107675** | 113911 | 106942 | 102317 | 106130 | 107535 | 108976 | 105580 |
| Tax-equivalent adjustment | **1032** | 951 | 992 | 866 | 862 | 931 | 930 | 980 |
| Provision/ (credit) for credit losses | **10801** | 18890 | 3046 | 1635 | 1585 | (8229) | (4204) | (34708) |
| Non-interest income | **14297** | 16882 | 35245 | 20595 | 22536 | 24394 | 26259 | 28866 |
| Non-interest expense | **64375** | 65780 | 64991 | 62147 | 66141 | 63181 | 62975 | 68173 |
| Income before income tax expense | **45764** | 45172 | 73158 | 58264 | 60078 | 76046 | 75534 | 100001 |
| Income tax expense | **11784** | 11588 | 18358 | 14329 | 14674 | 19070 | 18271 | 24537 |
| Net income | $**33980** | $33584 | $54800 | $43935 | $45404 | $56976 | $57263 | $75464 |
| **GAAP financial performance:** |  |  |  |  |  |  |  |  |
| Return on average assets | **0.98%** | 0.99% | 1.69% | 1.42% | 1.41% | 1.75% | 1.79% | 2.39% |
| Return on average common equity | **9.23%** | 8.96% | 14.97% | 11.83% | 11.87% | 14.54% | 15.07% | 20.72% |
| Return on average tangible common equity | **12.53%** | 12.10% | 20.42% | 16.04% | 16.07% | 19.56% | 20.44% | 28.47% |
| Net interest margin | **3.26%** | 3.53% | 3.49% | 3.49% | 3.51% | 3.52% | 3.63% | 3.56% |
| Efficiency ratio - GAAP basis | **53.23%** | 50.66% | 46.03% | 50.92% | 51.75% | 48.23% | 46.89% | 51.08% |
| **Non-GAAP financial performance:** |  |  |  |  |  |  |  |  |
| Pre-tax pre-provision net income | $**56565** | $64062 | $76204 | $59899 | $61663 | $67817 | $71330 | $65293 |
| Core after-tax earnings | $**35322** | $35695 | $44238 | $45050 | $46575 | $58151 | $58446 | $83511 |
| Core return on average assets | **1.02%** | 1.05% | 1.37% | 1.45% | 1.44% | 1.79% | 1.83% | 2.65% |
| Core return on average common equity | **9.60%** | 9.53% | 12.09% | 12.13% | 12.17% | 14.84% | 15.38% | 22.93% |
| Core return on average tangible common equity | **13.02%** | 12.86% | 16.49% | 16.45% | 16.49% | 19.96% | 20.87% | 31.50% |
| Core earnings per diluted common share | $**0.79** | $0.80 | $0.98 | $0.99 | $1.02 | $1.23 | $1.23 | $1.76 |
| Efficiency ratio - Non-GAAP basis | **51.46%** | 48.18% | 49.79% | 49.34% | 50.17% | 46.67% | 45.36% | 42.65% |
| **Per share data:** |  |  |  |  |  |  |  |  |
| Net income attributable to common shareholders | $**33866** | $33470 | $54606 | $43667 | $45114 | $56622 | $56782 | $74824 |
| Basic net income per common share | $**0.76** | $0.75 | $1.21 | $0.97 | $0.99 | $1.21 | $1.20 | $1.59 |
| Diluted net income per common share | $**0.76** | $0.75 | $1.21 | $0.96 | $0.99 | $1.20 | $1.19 | $1.58 |
| Weighted average diluted common shares | **44828827** | 44780560 | 45111693 | 45333292 | 45655924 | 47086824 | 47523198 | 47415060 |
| Dividends declared per share | $**0.34** | $0.34 | $0.34 | $0.34 | $0.32 | $0.32 | $0.32 | $0.32 |
| **Non-interest income:** |  |  |  |  |  |  |  |  |
| Securities gains/ (losses) | $**(393)** | $2 | $38 | $8 | $34 | $49 | $71 | $58 |
| Gain/ (loss) on disposal of assets | **—** | (183) | 16699 |  |  |  |  |  |
| Service charges on deposit accounts | **2419** | 2591 | 2467 | 2326 | 2305 | 2108 | 1976 | 1852 |
| Mortgage banking activities | **783** | 1566 | 1483 | 2298 | 3622 | 4942 | 5776 | 10169 |
| Wealth management income | **8472** | 8867 | 9098 | 9337 | 9598 | 9392 | 9121 | 8730 |
| Insurance agency commissions | **—** |  | 812 | 2115 | 1332 | 2285 | 1247 | 2153 |
| Income from bank owned life insurance | **950** | 693 | 703 | 795 | 819 | 818 | 705 | 680 |
| Bank card fees | **463** | 438 | 1810 | 1668 | 1818 | 1775 | 1785 | 1518 |
| Other income | **1603** | 2908 | 2135 | 2048 | 3008 | 3025 | 5578 | 3706 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total non-interest income** | $**14297** | $16882 | $35245 | $20595 | $22536 | $24394 | $26259 | $28866 |
| **Non-interest expense:** |  |  |  |  |  |  |  |  |
| Salaries and employee benefits | $**39455** | $40126 | $39550 | $39373 | $41535 | $38653 | $38990 | $36652 |
| Occupancy expense of premises | **4728** | 4759 | 4734 | 5034 | 5693 | 5728 | 5497 | 5487 |
| Equipment expenses | **3859** | 3825 | 3559 | 3536 | 3427 | 3214 | 3020 | 3222 |
| Marketing | **1354** | 1370 | 1280 | 1193 | 1090 | 1376 | 1052 | 1212 |
| Outside data services | **2707** | 2509 | 2564 | 2419 | 2123 | 2317 | 2260 | 2283 |
| FDIC insurance | **1462** | 1268 | 1078 | 984 | 991 | 361 | 1450 | 1492 |
| Amortization of intangible assets | **1408** | 1432 | 1466 | 1508 | 1609 | 1635 | 1659 | 1697 |
| Merger, acquisition and disposal expense | **—** | 1 | 1067 |  |  |  |  | 45 |
| Professional fees and services | **2573** | 2207 | 2372 | 2017 | 2381 | 3031 | 3165 | 1731 |
| Other expenses | **6829** | 8283 | 7321 | 6083 | 7292 | 6866 | 5882 | 14352 |
| &nbsp;&nbsp;**Total non-interest expense** | $**64375** | $65780 | $64991 | $62147 | $66141 | $63181 | $62975 | $68173 |

---

------

**Sandy Spring Bancorp, Inc. and Subsidiaries**

**HISTORICAL TRENDS - QUARTERLY FINANCIAL DATA - UNAUDITED**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **2022** | **2022** | **2022** | **2022** | 2021 | 2021 | 2021 | 2021 |
| *(Dollars in thousands, except per share data)* | **Q4** | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 |
| **Balance sheets at quarter end:** | **Balance sheets at quarter end:** |  |  |  |  |  |  |  |
| Commercial investor real estate loans | $**5130094** | $5066843 | $4761658 | $4388275 | $4141346 | $3743698 | $3712374 | $3652418 |
| Commercial owner-occupied real estate loans | **1775037** | 1743724 | 1767326 | 1692253 | 1690881 | 1661092 | 1687843 | 1644848 |
| Commercial AD&C loans | **1090028** | 1143783 | 1094528 | 1089331 | 1088094 | 1177949 | 1126960 | 1051013 |
| Commercial business loans | **1455885** | 1393634 | 1353380 | 1349602 | 1481834 | 1594528 | 1974366 | 2411109 |
| Residential mortgage loans | **1287933** | 1218552 | 1147577 | 1000697 | 937570 | 911997 | 960527 | 1022546 |
| Residential construction loans | **224772** | 229243 | 235486 | 204259 | 197652 | 181319 | 172869 | 171028 |
| Consumer loans | **432957** | 423034 | 426335 | 419911 | 429714 | 450765 | 457576 | 493904 |
| &nbsp;&nbsp;&nbsp;Total loans | **11396706** | 11218813 | 10786290 | 10144328 | 9967091 | 9721348 | 10092515 | 10446866 |
| Allowance for credit losses - loans | **(136242)** | (128268) | (113670) | (110588) | (109145) | (107920) | (123961) | (130361) |
| Loans held for sale | **11706** | 11469 | 23610 | 17537 | 39409 | 44678 | 71082 | 84930 |
| Investment securities | **1543208** | 1587279 | 1595424 | 1586441 | 1507062 | 1470652 | 1482123 | 1472727 |
| Total assets | **13833119** | 13765597 | 13303009 | 12967416 | 12590726 | 13017464 | 12925577 | 12873366 |
| Noninterest-bearing demand deposits | **3673300** | 3993480 | 4129440 | 4039797 | 3779630 | 3987411 | 4000636 | 3770852 |
| Total deposits | **10953421** | 10749486 | 10969461 | 10852794 | 10624731 | 10987400 | 10866466 | 10677752 |
| Customer repurchase agreements | **61967** | 91287 | 110744 | 130784 | 141086 | 147504 | 140708 | 129318 |
| Total stockholders' equity | **1483768** | 1451862 | 1477169 | 1488910 | 1519679 | 1546060 | 1562280 | 1511694 |
| **Quarterly average balance sheets:** | **Quarterly average balance sheets:** |  |  |  |  |  |  |  |
| Commercial investor real estate loans | $**5082697** | $4898683 | $4512937 | $4220246 | $3769529 | $3678886 | $3675119 | $3634174 |
| Commercial owner-occupied real estate loans | **1753351** | 1755891 | 1727325 | 1683557 | 1669737 | 1671442 | 1663543 | 1638885 |
| Commercial AD&C loans | **1136780** | 1115531 | 1096369 | 1102660 | 1140059 | 1161183 | 1089287 | 1049597 |
| Commercial business loans | **1373565** | 1327218 | 1334350 | 1372755 | 1482901 | 1820598 | 2225885 | 2291097 |
| Residential mortgage loans | **1251829** | 1177664 | 1070836 | 964056 | 925093 | 934365 | 994899 | 1066714 |
| Residential construction loans | **231318** | 235123 | 221031 | 197366 | 186129 | 170511 | 176135 | 179925 |
| Consumer loans | **426134** | 422963 | 421022 | 424859 | 436030 | 452289 | 468686 | 496578 |
| &nbsp;&nbsp;&nbsp;Total loans | **11255674** | 10933073 | 10383870 | 9965499 | 9609478 | 9889274 | 10293554 | 10356970 |
| Loans held for sale | **10901** | 15211 | 12744 | 17594 | 29426 | 50075 | 66958 | 82263 |
| Investment securities | **1717455** | 1734036 | 1686181 | 1617615 | 1535265 | 1403496 | 1482905 | 1407455 |
| Interest-earning assets | **13134234** | 12833758 | 12283834 | 11859803 | 12012576 | 12121048 | 12037701 | 12029424 |
| Total assets | **13769472** | 13521595 | 12991692 | 12576089 | 12791526 | 12886460 | 12798355 | 12801539 |
| Noninterest-bearing demand deposits | **3833275** | 3995702 | 4001762 | 3758732 | 3879572 | 3869293 | 3763135 | 3394110 |
| Total deposits | **11025843** | 10740999 | 10829221 | 10542029 | 10809665 | 10832115 | 10663346 | 10343190 |
| Customer repurchase agreements | **74797** | 104742 | 122728 | 131487 | 144988 | 145483 | 136286 | 148195 |
| Total interest-bearing liabilities | **8310278** | 7892230 | 7377045 | 7163641 | 7247756 | 7315021 | 7356656 | 7742987 |
| Total stockholders' equity | **1460254** | 1486427 | 1468036 | 1506516 | 1517793 | 1554765 | 1523875 | 1477150 |
| **Financial measures:** |  |  |  |  |  |  |  |  |
| Average equity to average assets | **10.61%** | 10.99% | 11.30% | 11.98% | 11.87% | 12.07% | 11.91% | 11.54% |
| Average investment securities to average earning assets | **13.08%** | 13.51% | 13.73% | 13.64% | 12.78% | 11.58% | 12.32% | 11.70% |
| Average loans to average earning assets | **85.70%** | 85.19% | 84.53% | 84.03% | 80.00% | 81.59% | 85.51% | 86.10% |
| Loans to assets | **82.39%** | 81.50% | 81.08% | 78.23% | 79.16% | 74.68% | 78.08% | 81.15% |
| Loans to deposits | **104.05%** | 104.37% | 98.33% | 93.47% | 93.81% | 88.48% | 92.88% | 97.84% |
| Assets under management | $**5255306** | $4969092 | $5171321 | $5793787 | $6078204 | $5733311 | $5676141 | $5401158 |
| **Capital measures:** |  |  |  |  |  |  |  |  |
| Tier 1 leverage <sup>(1)</sup> | **9.33%** | 9.33% | 9.53% | 9.66% | 9.26% | 9.33% | 9.49% | 9.14% |
| Common equity tier 1 capital to risk-weighted assets <sup>(1)</sup> | **10.23%** | 10.18% | 10.42% | 10.78% | 11.91% | 12.53% | 12.49% | 12.11% |
| Tier 1 capital to risk-weighted assets <sup>(1)</sup> | **10.23%** | 10.18% | 10.42% | 10.78% | 11.91% | 12.53% | 12.49% | 12.11% |
| Total regulatory capital to risk-weighted assets <sup>(1)</sup> | **14.20%** | 14.15% | 14.46% | 15.02% | 14.59% | 15.30% | 15.85% | 15.52% |
| Book value per common share | $**33.23** | $32.52 | $33.10 | $32.97 | $33.68 | $33.52 | $33.02 | $32.04 |
| Outstanding common shares | **44657054** | 44644269 | 44629697 | 45162908 | 45118930 | 46119074 | 47312982 | 47187389 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Estimated ratio at December 31, 2022.

------

**Sandy Spring Bancorp, Inc. and Subsidiaries**

**LOAN PORTFOLIO QUALITY DETAIL - UNAUDITED**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **2022** | **2022** | **2022** | **2022** | 2021 | 2021 | 2021 | 2021 |
| *(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: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial real estate: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial investor real estate | $**—** | $— | $— | $— | $— | $14830 | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial owner-occupied real estate | **—** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial AD&C | **—** |  |  |  |  | 7344 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial business | **1002** | 1966 |  |  |  |  |  | 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;Residential real estate: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Residential mortgage | **—** | 167 | 353 | 296 | 557 | 679 | 680 | 398 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Residential construction | **—** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Consumer | **—** | 34 |  |  |  |  |  |  |
| Total loans 90 days past due | **1002** | 2167 | 353 | 296 | 557 | 22853 | 680 | 429 |
| Non-accrual loans: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial real estate: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial investor real estate | **9943** | 14038 | 11245 | 11743 | 12489 | 15386 | 42072 | 42776 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial owner-occupied real estate | **5019** | 6294 | 7869 | 8083 | 9306 | 9854 | 8183 | 8316 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial AD&C | **—** |  | 1353 | 1081 | 650 | 1022 | 14489 | 14975 |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial business | **7322** | 7198 | 7542 | 8357 | 8420 | 9454 | 9435 | 13147 |
| &nbsp;&nbsp;&nbsp;&nbsp;Residential real estate: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Residential mortgage | **7439** | 7514 | 7305 | 8148 | 8441 | 9511 | 9440 | 9593 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Residential construction | **—** |  | 1 | 51 | 55 | 62 | 62 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Consumer | **5059** | 5173 | 5692 | 6406 | 6725 | 7826 | 7718 | 7193 |
| Total non-accrual loans | **34782** | 40217 | 41007 | 43869 | 46086 | 53115 | 91399 | 96000 |
| Total restructured loans - accruing | **3575** | 2077 | 2119 | 2161 | 2167 | 2199 | 2228 | 2271 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total non-performing loans | **39359** | 44461 | 43479 | 46326 | 48810 | 78167 | 94307 | 98700 |
| Other assets and other real estate owned (OREO) | **645** | 739 | 739 | 1034 | 1034 | 1105 | 1234 | 1354 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total non-performing assets | $**40004** | $45200 | $44218 | $47360 | $49844 | $79272 | $95541 | $100054 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | For the Quarter Ended, | For the Quarter Ended, | For the Quarter Ended, | For the Quarter Ended, | For the Quarter Ended, | For the Quarter Ended, | For the Quarter Ended, | For the Quarter Ended, |
| *(Dollars in thousands)* | **December 31,<br>2022** | September 30,<br>2022 | June 30,<br>2022 | March 31,<br>2022 | December 31,<br>2021 | September 30,<br>2021 | June 30,<br>2021 | March 31,<br>2021 |
| **Analysis of non-accrual loan activity:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Balance at beginning of period | $**40217** | $41007 | $43869 | $46086 | $53115 | $91399 | $96000 | $112361 |
| &nbsp;&nbsp;&nbsp;Non-accrual balances transferred to OREO | **—** |  |  |  |  |  | (257) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-accrual balances charged-off | **(22)** | (197) | (376) | (265) | (754) | (7171) | (2166) | (699) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net payments or draws | **(9535)** | (3509) | (3234) | (2787) | (5786) | (36526) | (3693) | (16028) |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans placed on non-accrual | **5467** | 4212 | 948 | 1503 | 511 | 5699 | 1515 | 421 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-accrual loans brought current | **(1345)** | (1296) | (200) | (668) | (1000) | (286) |  | (55) |
| Balance at end of period | $**34782** | $40217 | $41007 | $43869 | $46086 | $53115 | $91399 | $96000 |
| **Analysis of allowance for credit losses - loans:** |  |  |  |  |  |  |  |  |
| Balance at beginning of period | $**128268** | $113670 | $110588 | $109145 | $107920 | $123961 | $130361 | $165367 |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision/ (credit) for credit losses - loans | **7907** | 14092 | 3046 | 1635 | 1585 | (8229) | (4204) | (34708) |
| &nbsp;&nbsp;&nbsp;&nbsp;Less loans charged-off, net of recoveries: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial real estate: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial investor real estate | **(1)** |  | (300) | (19) | (109) | 5797 | (144) | (27) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial owner-occupied real estate | **(27)** | (10) | (12) |  |  | 136 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial AD&C | **—** |  |  |  |  | 2007 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial business | **(13)** | (512) | 331 | 111 | 564 | (53) | 2359 | 634 |
| &nbsp;&nbsp;&nbsp;&nbsp;Residential real estate: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Residential mortgage | **(50)** | (8) | (9) | 120 | (80) | (49) | (11) | (270) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Residential construction | **—** | (3) | (5) |  | (2) | (2) | (1) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Consumer | **24** | 27 | (41) | (20) | (13) | (24) | (7) | (39) |
| Net charge-offs/ (recoveries) | **(67)** | (506) | (36) | 192 | 360 | 7812 | 2196 | 298 |
| Balance at the end of period | $**136242** | $128268 | $113670 | $110588 | $109145 | $107920 | $123961 | $130361 |
| **Asset quality ratios:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-performing loans to total loans | **0.35%** | 0.40% | 0.40% | 0.46% | 0.49% | 0.80% | 0.93% | 0.94% |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-performing assets to total assets | **0.29%** | 0.33% | 0.33% | 0.37% | 0.40% | 0.61% | 0.74% | 0.78% |
| &nbsp;&nbsp;&nbsp;&nbsp;Allowance for credit losses to loans | **1.20%** | 1.14% | 1.05% | 1.09% | 1.10% | 1.11% | 1.23% | 1.25% |
| &nbsp;&nbsp;&nbsp;&nbsp;Allowance for credit losses to non-performing loans | **346.15%** | 288.50% | 261.44% | 238.72% | 223.61% | 138.06% | 131.44% | 132.08% |
| &nbsp;&nbsp;&nbsp;&nbsp;Annualized net charge-offs/ (recoveries) to average loans | **— %** | (0.02)% | —% | 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 December 31, | Three Months Ended December 31, | Three Months Ended December 31, | Three Months Ended December 31, | Three Months Ended December 31, | Three Months Ended December 31, |
| | **2022** | **2022** | **2022** | 2021 | 2021 | 2021 |
| *(Dollars in thousands and tax-equivalent)* | **Average**<br>**Balances** | **&nbsp;&nbsp;&nbsp;&nbsp;Interest** <sup>(1)</sup> | **Annualized**<br>**Average**<br>**Yield/Rate** | Average<br>Balances | &nbsp;&nbsp;&nbsp;&nbsp;Interest <sup>(1)</sup> | Annualized<br>Average<br>Yield/Rate |
| **Assets** |  |  |  |  |  |  |
| Commercial investor real estate loans | $**5082697** | $**56353** | **4.40%** | $3769529 | $38452 | 4.05% |
| Commercial owner-occupied real estate loans | **1753351** | **20433** | **4.62** | 1669737 | 19239 | 4.57 |
| Commercial AD&C loans | **1136780** | **18868** | **6.59** | 1140059 | 11543 | 4.02 |
| Commercial business loans | **1373565** | **20395** | **5.89** | 1482901 | 21500 | 5.75 |
| &nbsp;&nbsp;&nbsp;Total commercial loans | **9346393** | **116049** | **4.93** | 8062226 | 90734 | 4.47 |
| Residential mortgage loans | **1251829** | **10919** | **3.49** | 925093 | 7829 | 3.39 |
| Residential construction loans | **231318** | **1851** | **3.17** | 186129 | 1521 | 3.24 |
| Consumer loans | **426134** | **6775** | **6.31** | 436030 | 3928 | 3.57 |
| &nbsp;&nbsp;&nbsp;Total residential and consumer loans | **1909281** | **19545** | **4.08** | 1547252 | 13278 | 3.42 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total loans <sup>(2)</sup> | **11255674** | **135594** | **4.78** | 9609478 | 104012 | 4.30 |
| Loans held for sale | **10901** | **234** | **8.58** | 29426 | 271 | 3.68 |
| Taxable securities | **1243089** | **6047** | **1.95** | 1114936 | 3888 | 1.39 |
| Tax-advantaged securities | **474366** | **3026** | **2.55** | 420329 | 2431 | 2.31 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total investment securities <sup>(3)</sup> | **1717455** | **9073** | **2.11** | 1535265 | 6319 | 1.65 |
| Interest-bearing deposits with banks | **149651** | **1427** | **3.78** | 837741 | 330 | 0.16 |
| Federal funds sold | **553** | **4** | **2.97** | 666 | 1 | 0.15 |
| &nbsp;&nbsp;&nbsp;Total interest-earning assets | **13134234** | **146332** | **4.43** | 12012576 | 110933 | 3.67 |
| Less: allowance for credit losses - loans | **(127404)** |  |  | (106873) |  |  |
| Cash and due from banks | **94840** |  |  | 78370 |  |  |
| Premises and equipment, net | **65958** |  |  | 59450 |  |  |
| Other assets | **601844** |  |  | 748003 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total assets** | $**13769472** |  |  | $12791526 |  |  |
| **Liabilities and Stockholders' Equity** |  |  |  |  |  |  |
| Interest-bearing demand deposits | $**1398120** | $**1664** | **0.47%** | $1487392 | $211 | 0.06% |
| Regular savings deposits | **528306** | **232** | **0.17** | 512814 | 46 | 0.04 |
| Money market savings deposits | **3231952** | **16480** | **2.02** | 3554108 | 920 | 0.10 |
| Time deposits | **2034190** | **9900** | **1.93** | 1375779 | 1643 | 0.47 |
| &nbsp;&nbsp;&nbsp;Total interest-bearing deposits | **7192568** | **28276** | **1.56** | 6930093 | 2820 | 0.16 |
| Federal funds purchased | **172478** | **1677** | **3.86** | 11 |  | 0.06 |
| Repurchase agreements | **74797** | **20** | **0.11** | 144988 | 43 | 0.12 |
| Advances from FHLB | **500326** | **4759** | **3.77** |  |  |  |
| Subordinated debt | **370109** | **3925** | **4.24** | 172664 | 1940 | 4.49 |
| &nbsp;&nbsp;&nbsp;Total borrowings | **1117710** | **10381** | **3.68** | 317663 | 1983 | 2.48 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing liabilities | **8310278** | **38657** | **1.85** | 7247756 | 4803 | 0.26 |
| Noninterest-bearing demand deposits | **3833275** |  |  | 3879572 |  |  |
| Other liabilities | **165665** |  |  | 146405 |  |  |
| Stockholders' equity | **1460254** |  |  | 1517793 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities and stockholders' equity** | $**13769472** |  |  | $12791526 |  |  |
| Tax-equivalent net interest income and spread |  | $**107675** | **2.58%** |  | $106130 | 3.41% |
| &nbsp;&nbsp;&nbsp;Less: tax-equivalent adjustment |  | **1032** |  |  | 862 |  |
| Net interest income |  | $**106643** |  |  | $105268 |  |
| Interest income/earning assets |  |  | **4.43%** |  |  | 3.67% |
| Interest expense/earning assets |  |  | **1.17** |  |  | 0.16 |
| &nbsp;&nbsp;&nbsp;Net interest margin |  |  | **3.26%** |  |  | 3.51% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)Tax-equivalent income has been adjusted using the combined marginal federal and state rate of 25.47% and 25.64% 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.

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

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

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**Sandy Spring Bancorp, Inc. and Subsidiaries**

**CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES - UNAUDITED**

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | Year Ended December 31, | Year Ended December 31, | Year Ended December 31, | Year Ended December 31, | Year Ended December 31, | Year Ended December 31, |
| | **2022** | **2022** | **2022** | 2021 | 2021 | 2021 |
| *(Dollars in thousands and tax-equivalent)* | **Average**<br>**Balances** | **&nbsp;&nbsp;&nbsp;&nbsp;Interest** <sup>(1)</sup> | **Annualized**<br>**Average**<br>**Yield/Rate** | Average<br>Balances | &nbsp;&nbsp;&nbsp;&nbsp;Interest <sup>(1)</sup> | Annualized<br>Average<br>Yield/Rate |
| **Assets** |  |  |  |  |  |  |
| Commercial investor real estate loans | $**4681607** | $**194598** | **4.16%** | $3689769 | $152977 | 4.15% |
| Commercial owner-occupied real estate loans | **1730293** | **78559** | **4.54** | 1661015 | 76463 | 4.60 |
| Commercial AD&C loans | **1112936** | **56689** | **5.09** | 1110420 | 44460 | 4.00 |
| Commercial business loans | **1351906** | **69765** | **5.16** | 1952537 | 94391 | 4.83 |
| &nbsp;&nbsp;&nbsp;Total commercial loans | **8876742** | **399611** | **4.50** | 8413741 | 368291 | 4.38 |
| Residential mortgage loans | **1117053** | **37551** | **3.36** | 979754 | 33874 | 3.46 |
| Residential construction loans | **221341** | **6963** | **3.15** | 178171 | 6127 | 3.44 |
| Consumer loans | **423746** | **19887** | **4.69** | 463200 | 16689 | 3.60 |
| &nbsp;&nbsp;&nbsp;Total residential and consumer loans | **1762140** | **64401** | **3.65** | 1621125 | 56690 | 3.50 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total loans <sup>(2)</sup> | **10638882** | **464012** | **4.36** | 10034866 | 424981 | 4.24 |
| Loans held for sale | **14097** | **738** | **5.24** | 57016 | 1736 | 3.05 |
| Taxable securities | **1214032** | **20519** | **1.69** | 1017268 | 16118 | 1.58 |
| Tax-advantaged securities | **475187** | **11559** | **2.43** | 440215 | 10426 | 2.37 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total investment securities <sup>(3)</sup> | **1689219** | **32078** | **1.90** | 1457483 | 26544 | 1.82 |
| Interest-bearing deposits with banks | **189465** | **2672** | **1.41** | 500400 | 725 | 0.14 |
| Federal funds sold | **574** | **8** | **1.41** | 570 | 1 | 0.12 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest-earning assets | **12532237** | **499508** | **3.99** | 12050335 | 453987 | 3.77 |
| Less: allowance for credit losses - loans | **(116170)** |  |  | (130437) |  |  |
| Cash and due from banks | **84992** |  |  | 95620 |  |  |
| Premises and equipment, net | **63379** |  |  | 57198 |  |  |
| Other assets | **654386** |  |  | 745486 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total assets** | $**13218824** |  |  | $12818202 |  |  |
| **Liabilities and Stockholders' Equity** |  |  |  |  |  |  |
| Interest-bearing demand deposits | $**1457833** | $**3177** | **0.22%** | $1420249 | $911 | 0.06% |
| Regular savings deposits | **547510** | **294** | **0.05** | 482331 | 235 | 0.05 |
| Money market savings deposits | **3308678** | **23883** | **0.72** | 3453764 | 4871 | 0.14 |
| Time deposits | **1573868** | **16500** | **1.05** | 1579230 | 9005 | 0.57 |
| &nbsp;&nbsp;&nbsp;Total interest-bearing deposits | **6887889** | **43854** | **0.64** | 6935574 | 15022 | 0.22 |
| Federal funds purchased | **107785** | **2805** | **2.60** | 15154 | 13 | 0.08 |
| Repurchase agreements | **108273** | **124** | **0.11** | 143734 | 169 | 0.12 |
| Advances from FHLB | **256621** | **7825** | **3.05** | 111311 | 2649 | 2.38 |
| Subordinated debt | **328939** | **14055** | **4.27** | 208199 | 7913 | 3.80 |
| &nbsp;&nbsp;&nbsp;Total borrowings | **801618** | **24809** | **3.09** | 478398 | 10744 | 2.25 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing liabilities | **7689507** | **68663** | **0.89** | 7413972 | 25766 | 0.35 |
| Noninterest-bearing demand deposits | **3897842** |  |  | 3728249 |  |  |
| Other liabilities | **151277** |  |  | 157374 |  |  |
| Stockholders' equity | **1480198** |  |  | 1518607 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities and stockholders' equity** | $**13218824** |  |  | $12818202 |  |  |
| Tax-equivalent net interest income and spread |  | $**430845** | **3.10%** |  | $428221 | 3.42% |
| &nbsp;&nbsp;&nbsp;Less: tax-equivalent adjustment |  | **3841** |  |  | 3703 |  |
| Net interest income |  | $**427004** |  |  | $424518 |  |
| Interest income/earning assets |  |  | **3.99%** |  |  | 3.77% |
| Interest expense/earning assets |  |  | **0.55** |  |  | 0.21 |
| &nbsp;&nbsp;&nbsp;Net interest margin |  |  | **3.44%** |  |  | 3.56% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)Tax-equivalent income has been adjusted using the combined marginal federal and state rate of 25.47% and 25.64% for 2022 and 2021, respectively. The annualized taxable-equivalent adjustments utilized in the above table to compute yields aggregated to $3.8 million and $3.7 million in 2022 and 2021, respectively.

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

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

## Exhibit 99.2

![](a4thquarter2022supplemen001.jpg)

4th Quarter 2022 Earnings Presentation January 26, 2023 1

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![](a4thquarter2022supplemen002.jpg)

3 Subtitle Copy 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 in its filings with the SEC, accessible on the SEC's Web site at www.sec.gov. Forward Looking Statements 2

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![](a4thquarter2022supplemen003.jpg)

5 Subtitle Copy 3 Quarterly Highlights Source: Company documents 1) Non-GAAP financial measure; see reconciliation to most directly comparable GAAP measure in "Appendix – Reconciliation of non-GAAP Financial Measures" 2) Excludes merger, acquisition and disposal expense, amortization of intangible assets, loss on FHLB redemption, contingent payment expense, gain on disposal of assets and investment securities gains (losses) Profitability • Net income was $34.0 million ($0.76 per diluted common share) compared to net income of $45.4 million ($0.99 per diluted common share) for the prior year quarter, and $33.6 million ($0.75 per diluted common share) for the previous quarter. • Core earnings(1)(2) were $35.3 million ($0.79 per diluted common share) compared to core earnings of $46.6 million ($1.02 per diluted common share) for the prior year quarter, and $35.7 million ($0.80 per diluted common share) for the previous quarter. • GAAP efficiency ratio was 53.23% compared to 51.75% for the prior year quarter, and 50.66% for the previous quarter . The non- GAAP efficiency ratio(1)(2) was 51.46% compared to 50.17% for the prior year quarter, and 48.18% for the previous quarter. Income Statement • Net interest margin of 3.26%, compared to 3.51% for the same quarter of 2021, and 3.53% for the previous quarter. Pre-tax pre- provision net income(1) was $56.6 million compared to $61.7 million for the prior year quarter. • Provision for credit losses was $10.8 million compared to the prior year quarter's provision of $1.6 million. • Non-interest income decreased by 37% or $8.2 million compared to the prior year quarter. • Non-interest expense decreased $1.8 million or 3% compared to the prior year quarter. Balance Sheet • Total assets were $13.8 billion, a 10% increase compared to $12.6 billion at December 31, 2021. Excluding PPP balances, total assets grew 11% year-over-year. • Total loans, excluding PPP loans, increased 16% to $11.4 billion compared to $9.8 billion at December 31, 2021. Total commercial loans, excluding PPP loans, grew by $1.2 billion or 15% during the previous twelve months. • Year-over-year deposits grew 3%. Noninterest-bearing deposits declined 3% and interest-bearing deposits grew 6%. Asset Quality • Non-performing loans to total loans was 0.35% compared to 0.49% at December 31, 2021, and 0.40% at September 30, 2022. Non- performing loans totaled $39.4 million, compared to $48.8 million at December 31, 2021, and $44.5 million at September 30, 2022. Capital • Risk-based capital ratio of 14.20%, a common equity tier 1 risk-based capital ratio of 10.23%, a tier 1 risk-based capital ratio of 10.23%, and a tier 1 leverage ratio of 9.33%.

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![](a4thquarter2022supplemen004.jpg)

7 Subtitle Copy 4th Quarter 2022 Financial Performance 4

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![](a4thquarter2022supplemen005.jpg)

9 Subtitle Copy Profitability 5

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![](a4thquarter2022supplemen006.jpg)

10 Subtitle Copy Profitability Trends Diluted EPS f Source: Company documents 1) Non-GAAP financial measure; see reconciliation to most directly comparable GAAP measure in "Appendix – Reconciliation of non-GAAP Financial Measures" 6 Return on Average Assets Return on Average Common Equity Diluted Core EPS(1) $0.99 $0.96 $1.21 $0.75 $0.76 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 $1.02 $0.99 $0.98 $0.80 $0.79 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 1.41% 1.42% 1.69% 0.99% 0.98% 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 11.87% 11.83% 14.97% 8.96% 9.23% 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022

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![](a4thquarter2022supplemen007.jpg)

11 Subtitle Copy Profitability Trends Net Income Provision (Credit) for Credit Losses Pre-Tax Pre-Provision Net Revenue(1) 7Source: Company documents 1) Net Interest Income plus Non-interest Income less Non-interest Expense • Primary driver of the decline in net income from 4Q 2021 to 4Q 2022 was the provision for credit losses and the decrease in non-interest income. Non-interest expense was lower than the prior year period. • 4Q 2022 non-interest income decreased compared to 4Q 2021 as a result of lower mortgage banking income, the decline in insurance commission income as a result of the disposition of the Company's insurance business, lower wealth income due to market conditions and lower bankcard fees resulting from the implementation of applicable regulations. (Dollars in millions) $45.4 $43.9 $54.8 $33.6 $34.0 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 (Dollars in millions) $61.7 $59.9 $76.2 $64.1 $56.6 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 (Dollars in millions) $1.6 $1.6 $3.0 $18.9 $10.8 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022

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![](a4thquarter2022supplemen008.jpg)

12 Subtitle Copy Income Statement 8

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![](a4thquarter2022supplemen009.jpg)

Net Interest Income Net Interest Income & Net Interest Margin Source: Company documents 9 • The net interest margin for 4Q 2022 was 3.26% as compared to 3.51% for 4Q 2021, as the yield on interest-earning assets rose 76 basis points and was offset by the 159 basis point rise in the rate paid on interest-bearing liabilities. • Net interest margin, excluding the effects of amortization of the fair value marks derived from acquisitions and interest and fees from PPP loans was 3.26% for the current quarter compared to 3.31% for 4Q 2021. • The increase in net interest income for 4Q 2022 compared to the same quarter of the prior year was higher interest income from all commercial loan categories and, to a lesser degree, increases in residential mortgage loans, consumer loans and investment securities income partially offset by a $9.1 million decline in interest on PPP loans. The increase in interest expense was driven by the increased cost of interest-bearing deposits, primarily time and money market deposits, and the increase in the cost and amount of borrowings. (Dollars in thousands) $105,268 $101,451 $105,950 $112,960 $106,643 3.51% 3.49% 3.49% 3.53% 3.26% Net Interest Income Net Interest Margin 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 $80,000 $85,000 $90,000 $95,000 $100,000 $105,000 $110,000 $115,000 3.00% 3.20% 3.40% 3.60% 3.80% 4.00%

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![](a4thquarter2022supplemen010.jpg)

Average Balance Sheet Source: Company documents 10 Average Loans Average Deposits Average Investments Average Borrowings (Dollars in millions) $9,609 $9,965 $10,384 $10,933 $11,256 4.30% 4.06% 4.12% 4.42% 4.78% Average Loans Yield on Average Loans (Gross) 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 $8,000 $9,000 $10,000 $11,000 (Dollars in millions) $1,535 $1,618 $1,686 $1,734 $1,717 1.65% 1.65% 1.83% 1.99% 2.11% Average Investments Yield on Average Investments 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 $0 $500 $1,000 $1,500 $2,000 (Dollars in millions) $10,831 $10,542 $10,829 $10,741 $11,026 0.13% 0.10% 0.09% 0.35% 1.02% Average Deposits Yield on Average Deposits 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 $10,000 $10,250 $10,500 $10,750 $11,000 (Dollars in millions) $318 $380 $550 $1,147 $1,118 2.48% 2.44% 3.04% 2.76% 3.68% Average Borrowings Yield on Average Borrowings 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 $— $300 $600 $900 $1,200

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![](a4thquarter2022supplemen011.jpg)

Source: Company documents 1) YTD December 31, 2022 Revenue Composition Revenue Composition (1) Non-interest Income 11 • Non-interest income for the current quarter decreased by 37% or $8.2 million compared to the prior year quarter as a result of a decline in insurance commission income due to the disposition of the Company's insurance business during the second quarter of 2022, reduced bankcard income due to regulatory restrictions on fee recognition, a decline in income from mortgage banking activities reflecting the impact of the economic environment and lower wealth income driven by market performance compared to the prior year quarter. In addition, in order to improve future interest yields, $0.4 million in losses were taken on the sales of investment securities during the quarter. Wealth Management 58% Mortgage Banking 5% Services Charges on Deposits 17% Other 11% Bank Card Revenue 3% BOLI Income 6% (Dollars in thousands) $ Change vs 4Q 2022 3Q 2022 4Q 2021 Investment Securities Gains/ Losses $(393) $(395) $(427) Gain on Disposal of Assets — 183 — Service Charges on Deposits 2,419 (172) 114 Mortgage Banking 783 (783) (2,839) Wealth Management 8,472 (395) (1,126) Insurance Agency Commissions — — (1,332) BOLI Income 950 257 131 Bank Card Revenue 463 25 (1,355) Other Income 1,603 (1,305) (1,405) Non-interest Income $14,297 $(2,585) $(8,239) Total: $14.3 Million

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![](a4thquarter2022supplemen012.jpg)

Non-interest Expense Non-interest Expense 12 • Non-interest expense for the current quarter decreased $1.8 million or 3% compared to the prior year quarter as a result of a decline in compensation and benefits costs, occupancy expense and other non-interest expenses. The compensation decrease was primarily due to a decrease in commission and incentive payments as well as reduced pension and health insurance costs. Occupancy expense declined $1.0 million due to lower depreciation and rental expense. The impact of these lower expenses was offset by operating cost increases in equipment, marketing, outside data services, FDIC insurance and professional fees and services. • The increase in the GAAP efficiency ratio compared to the prior year quarter was primarily the result the 5% decrease in GAAP revenue compared to the 3% decrease in GAAP non-interest expense. The increase in the current non-GAAP efficiency ratio compared to the prior year quarter was primarily due to a 5% decline in non-GAAP revenue, driven chiefly by a decrease in non-GAAP non-interest income, while non-GAAP expenses declined 2%. Efficiency Ratio (%) Source: Company documents 1) Non-GAAP financial measure; see reconciliation to most directly comparable GAAP measure in "Appendix – Reconciliation of non-GAAP Financial Measures" (Dollars in thousands) $ Change vs 4Q 2022 3Q 2022 4Q 2021 Salaries and Employee Benefits $39,455 $(671) $(2,080) Occupancy 4,728 (31) (965) Equipment 3,859 34 432 Marketing 1,354 (16) 264 Outside Data Services 2,707 198 584 FDIC Insurance 1,462 194 471 Amortization of Intangible Assets 1,408 (24) (201) Merger, Aquisition and Disposal — (1) — Professional Fees and Services 2,573 366 192 Other Expense 6,829 (1,454) (463) Non-interest Expense $64,375 $(1,405) $(1,766) 50.17% 49.34% 49.79% 48.18% 51.46% 51.75% 50.92% 46.03% 50.66% 53.23% Efficiency Ratio - Non-GAAP basis (1) Efficiency Ratio - GAAP basis 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 44.00% 46.00% 48.00% 50.00% 52.00% 54.00%

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![](a4thquarter2022supplemen013.jpg)

Balance Sheet 13

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![](a4thquarter2022supplemen014.jpg)

Balance Sheet Trends Total Assets Loans Held for Investment Total Deposits 14Source: Company documents (Dollars in millions) $12,591 $12,967 $13,303 $13,766 $13,833 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 $12,000 $12,500 $13,000 $13,500 $14,000 (Dollars in millions) 10,625 $10,853 $10,969 $10,749 $10,953 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 9,000 10,000 11,000 12,000 (Dollars in millions) $9,967 $10,144 $10,786 $11,219 $11,397 $9,784 $10,069 $10,763 $11,205 $11,384$183 $76 $23 $14 $13 Loans HFI PPP 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 $9,000 $10,000 $11,000 $12,000

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![](a4thquarter2022supplemen015.jpg)

Deposit Portfolio Deposit Composition (1) 15 Deposit Growth • Year-over-year deposits increased 3%. Interest bearing deposits grew 6% offset by a 3% decrease in noninterest-bearing deposits. During the period, time deposits increased 64% driven by brokered deposits while money market accounts decreased 6%, savings decreased 4% and interest-bearing demand declined 11%. Excluding the impact of the increase in brokered deposits, total deposits decreased 4%. • #1 deposit market share for community banks in combined Washington, D.C. & Baltimore MSAs. Source: Company documents and S&P Global Market Intelligence 1) At September 30, 2022 Noninterest Bearing Deposits, 35% MMDA & Other Savings, 36% Interest Bearing Demand, 13% Time Deposits, 11% Brokered Time Deposits, 5% $11.0 Billion (Dollars in millions) $ Change vs 4Q 2022 3Q 2022 4Q 2021 Noninterest Bearing Deposits $3,673 $(320) $(107) MMDA & Other Savings 3,726 16 (224) Interest Bearing Demand 1,435 72 (170) Time Deposits 1,199 51 5 Brokered Time Deposits 920 385 823 Total Deposits $10,953 $204 $327

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![](a4thquarter2022supplemen016.jpg)

Loan Portfolio, Asset Quality & Reserves (CECL) 16

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![](a4thquarter2022supplemen017.jpg)

Source: Company documents 1) At December 31, 2022; Amounts include PPP loans and net deferred fees/costs in C&I Loan Portfolio Loan Composition(1) 17 Net Loan Change (1) Investor Real Estate 45% Owner- Occupied Real Estate 16% AD&C 9% C&I 13% Residential Mortgage 11% Residential Construction 2% Consumer 4% Total: $11.4 Billion (Dollars in millions) $ Change vs 4Q 2022 3Q 2022 4Q 2021 Investor Real Estate $5,130 $63 $989 Owner-Occupied Real Estate 1,775 31 84 AD&C 1,090 (54) 2 C&I 1,456 62 (26) Residential Mortgage 1,288 70 350 Residential Construction 225 (4) 27 Consumer 433 10 3 Total Loans $11,397 $178 $1,429 • Total loans, excluding PPP loans, grew by 16% to $11.4 billion at December 31, 2022, compared to $9.8 billion the prior year quarter. PPP loans are in the C&I category, excluding PPP loans all loan categories grew year over year. Total commercial loans, excluding PPP loans, grew $1.2 billion or 15% during the past twelve months. During this period, new commercial gross loan production of $3.9 billion, of which $2.5 billion was funded, more than offset the $1.2 billion in non-PPP commercial loan run-off. • The growth in the commercial portfolio, excluding PPP loans, occurred in all commercial portfolios led by the $1.0 billion or 24% growth in the investor owned commercial portfolio. Year-over-year the total residential mortgage loan portfolio grew 37%, as a greater number of conventional 1-4 family mortgages and one- year arm loans were retained to grow the portfolio.

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![](a4thquarter2022supplemen018.jpg)

Current Expected Credit Losses – Loans 18 ACL/Total Loans • $136.2 million ACL or 1.20% of loan balances and 346% of non-performing loans for December 31, 2022. • Provision of $10.8 million for the current quarter is a reflection of a provision of $7.9 million directly attributable to the funded loan portfolio and the impact of forecasted economic metrics coupled with the increased probability of a recession. A provision charge for unfunded loan commitments is the remaining $2.9 million. • Utilized December Moody's baseline forecast in quantitative model. ACL by Loan Type Source: Company documents (Dollars in thousands) $109,145 $110,588 $113,670 $128,268 $136,242 1.10% 1.09% 1.05% 1.14% 1.20% Total ACL ACL/Total Loans 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 $95,000 $100,000 $105,000 $110,000 $115,000 $120,000 $125,000 $130,000 —% 0.50% 1.00% 1.50% (Dollars in thousands) 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 Investor Real Estate $45,289 $50,813 $56,794 $64,169 $64,737 Owner-Occupied Real Estate 11,687 10,860 10,784 11,099 11,646 Commercial AD&C 20,322 18,459 13,383 16,847 18,646 Commercial Business 23,170 21,771 22,238 24,826 28,027 Total Commercial 100,468 101,903 103,199 116,941 123,056 Residential Mortgage 5,384 5,722 7,254 8,063 9,424 Residential Construction 1,048 889 1,141 1,226 1,337 Consumer 2,245 2,074 2,076 2,038 2,425 Total Residential and Consumer 8,677 8,685 10,471 11,327 13,186 Allowance for Credit Losses $109,145 $110,588 $113,670 $128,268 $136,242

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Allowance for Credit Losses - Loans: 4Q 2022 Change 19 • Increase in 4Q 2022 ACL was mainly due to the impact of forecasted economic factors and an increase in the probability of an economic recession rather than a change in the underlying credit quality of the loan portfolio. Source: Company documents (Dollars in millions) $128.3 $1.8 $6.1 $4.1 $(4.3) $0.2 $136.2 ACL Change in portfolio balances and mix Change in economic forecast Change in qualitative adjustments Annual recalibration of models Other, net ACL 12/31/229/30/22

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Source: Company documents . Strong Credit Culture and Performance Nonperforming Assets / Assets Annualized Net Charge-Offs (Recoveries) / Average Loans Nonperforming Loans / Loans Reserves / Loans HFI 20 0.40% 0.37% 0.33% 0.33% 0.29% 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 —% 0.25% 0.50% 0.75% 1.00% 0.01% 0.01% —% (0.02)% 0.00% 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 (0.25)% —% 0.25% 0.50% 0.49% 0.46% 0.40% 0.40% 0.35% 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.10% 1.09% 1.05% 1.14% 1.20% 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 1.00% 1.10% 1.20% 1.30%

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Capital 21

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Capital Ratios Tier 1 Common Equity Ratio 22 Tier 1 Capital Ratio Tangible Common Equity Ratio (1)Total Capital Ratio Source: Company documents 1) Non-GAAP financial measure; see reconciliation to most directly comparable GAAP measure in "Appendix – Reconciliation of non-GAAP Financial Measures" 11.91% 10.78% 10.42% 10.18% 10.23% 7.00% 7.00% 7.00% 7.00% 7.00% TIER 1 COMMON WELL CAPITALIZED 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 11.91% 10.78% 10.42% 10.18% 10.23% 8.50% 8.50% 8.50% 8.50% 8.50% TIER 1 COMMON WELL CAPITALIZED 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 14.59% 15.02% 14.46% 14.15% 14.20% 10.50% 10.50% 10.50% 10.50% 10.50% TOTAL CAPITAL WELL CAPITALIZED 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 9.21% 8.70% 8.45% 7.98% 8.18% 2.00% 2.00% 2.00% 2.00% 2.00% TCE WELL CAPITALIZED 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 0.00% 5.00% 10.00%

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Source: Company documents 1) Based on December 30, 2022 SASR closing share price of $35.23 2) Non-GAAP financial measure; see reconciliation to most directly comparable GAAP measure in "Appendix – Reconciliation of non-GAAP Financial Measures" Capital Strategy Tangible Book Value Per Share (2) 23 • Quarterly dividend currently $0.34 per share. 3.86% (1) annualized dividend yield. • 45% of 4Q 2022 earnings returned to shareholders through common dividends. • During 2Q 2022, the Company repurchased 625,710 shares of its common stock for $25.0 million at an average price of $39.93 per share. No shares were purchased during 3Q 2022 or 4Q 2022. $24.90 $24.23 $24.45 $23.90 $24.64 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022

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Appendix 24

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Non-GAAP Reconciliation This presentation contains financial information and performance measures determined by methods other than in accordance with generally accepted accounting principles in the United States ("GAAP"). Sandy Spring Bancorp's management believes that the supplemental non-GAAP information provides a better comparison of period-to-period operating performance. Additionally, Sandy Spring Bancorp 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 presentation consist of the following: • efficiency ratio • tangible common equity • core earnings Efficiency Ratio. Management views the GAAP efficiency ratio as an important financial measure of expense performance and cost management. The ratio expresses the level of non-interest expenses as a percentage of total revenue (net interest income plus total non-interest income). Lower ratios indicate improved productivity. In general, the efficiency ratio is non-interest expenses as a percentage of net interest income plus non-interest income. Non- interest expenses used in the calculation of the non-GAAP efficiency ratio excludes intangible asset amortization, loss on FHLB redemption, contingent payment expense, and merger, acquisition, and disposal expense from non-interest expense, and securities gains and gain on asset sales from non-interest income and adds the tax- equivalent adjustment to net interest income. The measure is different from the GAAP efficiency ratio, which also is presented in this document. The GAAP measure is calculated using non-interest expense and income amounts as shown on the face of the Consolidated Statements of Income. The GAAP and non-GAAP efficiency ratios are reconciled and provided in the following table. Tangible Common Equity. Tangible equity, tangible assets and tangible book value per share are non-GAAP financial measures calculated using GAAP amounts. Tangible common equity and tangible assets exclude the balances of goodwill and other intangible assets from stockholder's equity and total assets, respectively. Management believes that this non-GAAP financial measure provides information to investors that may be useful in understanding our financial condition. Because not all companies use the same calculation of tangible equity and tangible assets, this presentation may not be comparable to other similarly titled measures calculated by other companies. Core Earnings. Core earnings is a non-GAAP financial measure calculated using GAAP amounts. Core earnings reflect net income for the period exclusive of merger, acquisition and disposal expense, amortization of intangible assets, loss on FHLB redemption, contingent payment expense, investment securities gains,and gain on asset sales, in each case net of tax. Management believes that this non-GAAP financial measure provides helpful information to investors in understanding the Company's core operating earnings and provides a better comparison of period-to-period operating performance of the Company. 25

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Reconciliation of Non-GAAP Financial Measures-QTD Source: Company documents 26 (Dollars in thousands) 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 Pre-tax pre-provision income (Non-GAAP) . Pre-tax pre-provision income: $45,404 $43,935 $54,800 $33,584 $33,980 Net income Plus/(less) non-GAAP adjustments: Income taxes 14,674 14,329 18,358 11,588 11,784 Provision for credit losses 1,585 1,635 3,046 18,890 10,801 Pre-tax pre-provision net income $61,663 $59,899 $76,204 $64,062 $56,565 Efficiency ratio - GAAP basis . Non-interest expenses $66,141 $62,147 $64,991 $65,780 $64,375 Net interest income plus non-interest income 127,804 122,046 141,195 129,842 120,940 Efficiency ratio - GAAP basis 51.75 % 50.92 % 46.03 % 50.66 % 53.23 % Efficiency ratio - Non-GAAP basis Non-interest expenses $66,141 $62,147 $64,991 $65,780 $64,375 Less non-GAAP adjustments: Amortization of intangible assets 1,609 1,508 1,466 1,432 1,408 Merger, acquisition and disposal expense — — 1,067 1 — Contingent payment expense — — — 1,247 — Non-interest expenses - as adjusted $64,532 $60,639 $62,458 $63,100 $62,967 Net interest income plus non-interest income $127,804 $122,046 $141,195 $129,842 $120,940 Plus non-GAAP adjustment: Tax-equivalent income 862 866 992 951 1,032 Less non-GAAP adjustments: Investment securities gains/(losses) 34 8 38 2 (393) Gain/(loss) on disposal of assets — — 16,699 (183) — Net interest income plus non-interest income - as adjusted $128,632 $122,904 $125,450 $130,974 $122,365 Efficiency ratio - Non-GAAP basis 50.17 % 49.34 % 49.79 % 48.18 % 51.46 %

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Tangible Common Equity-QTD Source: Company documents 27 (Dollars in thousands except per share data) 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 Tangible common equity ratio: Total stockholders' equity $1,519,679 $1,488,910 $1,477,169 $1,451,862 $1,483,768 Goodwill (370,223) (370,223) (363,436) (363,436) (363,436) Other intangible assets, net (25,920) (24,412) (22,694) (21,262) (19,855) Tangible common equity $1,123,536 $1,094,275 $1,091,039 $1,067,164 $1,100,477 Total assets $12,590,726 $12,967,416 $13,303,009 $13,765,597 $13,833,119 Goodwill (370,223) (370,223) (363,436) (363,436) (363,436) Other intangible assets, net (25,920) (24,412) (22,694) (21,262) (19,855) Tangible assets $12,194,583 $12,572,781 $12,916,879 $13,380,899 $13,449,828 Common shares outstanding 45,118,930 45,162,908 44,629,697 44,644,269 44,657,054 Tangible common equity ratio 9.21 % 8.70 % 8.45 % 7.98 % 8.18 % Book value per common share $33.68 $32.97 $33.10 $32.52 $33.23 Tangible book value per common share $24.90 $24.23 $24.45 $23.90 $24.64

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Core Earnings-QTD Source Company documents 28 (Dollars in thousands except per share data) 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 Core Earnings: Net income(GAAP) $45,404 $43,935 $54,800 $33,584 $33,980 Plus/(less) non-GAAP adjustments (net of tax): Merger, acquisition and disposal expense — — 793 — — Amortization of intangible assets 1,197 1,121 1,090 1,076 1,049 (Gain)/loss on disposal of assets — — (12,417) 108 — Investment securities gains/(losses) (26) (6) (28) (2) 293 Contingent payment expense — — — 929 — Core earnings (non-GAAP) $46,575 $45,050 $44,238 $35,695 $35,322 Core return on average assets (non-GAAP) Average assets (GAAP) $12,791,526 $12,576,089 $12,991,692 $13,521,595 $13,769,472 Return on average assets (GAAP) 1.41 % 1.42 % 1.69 % 0.99 % 0.98 % Core return on average assets (non-GAAP) 1.44 % 1.45 % 1.37 % 1.05 % 1.02 % Weighted average common shares outstanding - diluted (GAAP) 45,655,924 45,333,292 45,111,693 44,780,560 44,828,827 Earning per diluted common share (GAAP) $0.99 $0.96 $1.21 $0.75 $0.76 Core earnings per diluted common share (non-GAAP) $1.02 $0.99 $0.98 $0.80 $0.79

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