4th Quarter 2022 Investor Presentation

January 31, 2023

1

Forward Looking Statements

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

2

Sandy Spring Bancorp, Inc.

Highlights 12/31/22

$13.8 billion in total assets $11.4 billion in total loans

1.6 billion market capitalization (1)

$11.0 billion in deposits

  • In 2022, ranked #5of America's Best Banksby Forbes magazine and ranked #1bank in Maryland by Forbes magazine (2)
  • In 2022, ranked #5in S&P Global Market Intelligence's annual rankings for top performing banks and credit unions (3)
  • Named one of The Washington Post's 2022 Top Workplacesand one of the Best Banks to Work For in 2021 by American Banker.
    In 2022, certified as a Great Place to Workand named a USA Top Workplacein Energage's inaugural USA Top Workplaces program in 2021.
  • In 2022, ranked #23of the Top 25 U.S. Banksby Bank Directorwhich ranks the 300 largest publicly traded banks (4)
  • Significant organic and acquisition growth opportunities throughout our markets
  • Strong asset quality
  • Conservative capital and liquidity management

Founded in 1868, Sandy Spring Bank is one of the area's oldest and largest depository institutions

1)

Market data at market close on January 17, 2023

4) Per Dank Director "Top 25 U.S. Banks" ranking banking study

2)

Per Forbes "Best Banks in Each State 2022 List"

3

3)

Per S&P Global Market Intelligence "Top 50 Public Banks 2021"

Quarterly Highlights

Profitability

Income Statement

Balance Sheet

Asset Quality

Capital

  • 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.
  • 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-interestincome decreased by 37% or $8.2 million compared to the prior year quarter.
  • Non-interestexpense decreased $1.8 million or 3% compared to the prior year quarter.
  • 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-yeardeposits grew 3%. Noninterest-bearing deposits declined 3% and interest-bearing deposits grew 6%.
  • Non-performingloans 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.
  • Risk-basedcapital 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%.

Source: Company documents

1) Non-GAAP financial measure; see reconciliation to most directly comparable GAAP measure in "Appendix - Reconciliation of non-GAAP Financial Measures"4

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)

Operational Overview

Strong Core Franchise

Financial Performance

  • A top commercial bank franchise in the Greater Washington, DC metro area
  • Well-positionedfor solid organic growth
  • Comprehensive product offering with noninterest income / total revenue of 14.2% (1)
  • Robust commercial loan production for three consecutive quarters
  • Core return on average assets of 1.21%(1)(2)(3)
  • Disciplined growth and expense management contributes to a strong 49.66% efficiency ratio (1)(2)
  • YTD net interest margin of 3.44% (1)

Robust Capital and Liquidity

Prudent Risk

Management and

Credit Culture

Experienced

Management

  • Strong current capital position with 11.20% average equity to average asset ratio and 8.18% tangible common equity
    ratio (1)(2)
  • Stable core deposit funded portfolio comprised of core customer relationships with 47% checking accounts (1)
  • Excellent risk management culture with robust governance processes and experienced credit personnel
  • Consistently excellent asset quality metrics
  • Diversified loan portfolio with 4.36% total yield (1)
  • Experienced management team with ~200 years of combined banking experience
  • Deep in-market relationships drive client-focused business model
  • Experienced acquirer with a record of successful integrations

Source: S&P Global Market Intelligence and Company documents

1)

YTD December 31, 2022

5

2)

Non-GAAP financial measure; see reconciliation to most directly comparable GAAP measure in "Appendix - Reconciliation of non-GAAP Financial Measures"; core return on average assets see "Appendix - Core Earnings"

3)

Excludes merger, acquisition and disposal expense, amortization of intangible assets, contingent payment expense, loss on FHLB redemption, gain on disposal of assets, and investment securities gains

This is an excerpt of the original content. To continue reading it, access the original document here.

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

Sandy Spring Bancorp Inc. published this content on 31 January 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 January 2023 14:47:01 UTC.