Sandy Spring Bancorp Reports First Quarter Net Income of $10.6 Million, an Increase of 25%

Sandy Spring Bancorp Reports First Quarter Net Income of $10.6 Million, an
Increase of 25%

OLNEY, Md., April 18, 2013 (GLOBE NEWSWIRE) -- Sandy Spring Bancorp, Inc.,
(Nasdaq:SASR) the parent company of Sandy Spring Bank, today announced net
income for the first quarter of 2013 of $10.6 million ($.42 per diluted share)
compared to net income of $8.5 million ($0.35 per diluted share) for the first
quarter of 2012 and net income of $9.9 million ($0.40 per diluted share) for
the fourth quarter of 2012.

"We are off to a strong start for 2013 as the combination of organic loan and
deposit growth together with disciplined management of funding costs has
offset declining earning asset yields in this low interest rate environment,"
said Daniel J. Schrider, President and Chief Executive Officer. "Maintaining
our net interest margin in the face of such a challenging economic environment
has been one of our primary goals."

"Our results for the quarter also benefited from improved credit quality due
to a continuing decrease in non-performing loans as well as strong mortgage
banking revenues driven by historically high mortgage origination volumes,"
said Schrider.

First Quarter Highlights:

  *Pre-tax pre-provision income, a non-GAAP measure, was $15.9 million for
    the first quarter of 2013, a 19% increase over the first quarter of 2012
    and a 1% increase compared to the fourth quarter of 2012.
    
  *The net interest margin was 3.59% for the first quarter of 2013, compared
    to 3.56% for the first quarter of 2012 and 3.53% for the fourth quarter of
    2012. The increase compared to the prior quarter was due primarily to a
    lower cost of deposits and borrowings which more than offset the decline
    in the yield on earning assets.
    
  *Non-interest income increased 13% for the quarter compared to the prior
    year quarter and 1% compared to the fourth quarter of 2012. The increase
    over the prior year quarter was due primarily to growth in income from
    mortgage banking activities, miscellaneous loan sales and a non-recurring
    legal settlement.
    
  *Non-performing loans totaled $49.5 million at March 31, 2013 compared to
    $72.2 million at March 31, 2012 and $57.9 million at December 31, 2012.
    The coverage ratio of the allowance for loan and lease losses to
    non-performing loans increased to 83% at March 31, 2013 compared to a
    coverage ratio of 62% at March 31, 2012 and 74% at December 31, 2012.
    
  *Total loans increased 13% over the first quarter of 2012 due primarily to
    organic loan growth and loans acquired in the CommerceFirst acquisition.
    Total loans increased 1% compared to the fourth quarter of 2012 due to
    growth in commercial investor real estate and residential mortgage loans.

Review of Balance Sheet and Credit Quality

Total assets increased 7% to $3.9 billion at March 31, 2013 as compared to
March 31, 2012. Total loans and leases increased 13% to $2.6 billion compared
to the prior year. This increase was due to loans added in the CommerceFirst
acquisition and growth in commercial investor real estate, commercial owner
occupied real estate, commercial business and residential mortgage loans.

Customer funding sources, which include deposits and other short-term
borrowings from customers, increased 8% compared to March 31, 2012. This
increase was due primarily to a 20% increase in noninterest-bearing and
interest-bearing checking accounts. The Company considers the growth in
checking accounts to be an especially valuable metric as such accounts
typically are the primary drivers of growth in multiple product banking
relationships with clients.Certificates of deposit declined 11% at March 31,
2013 compared to balances at March 31, 2012, as the Company managed its
deposit mix to maintain the net interest margin.

Tangible common equity totaled $391.7 million at March 31, 2013 compared to
$358.0 million at March 31, 2012 resulting in an increase in the ratio of
tangible common equity to tangible assets from 9.98% at March 31, 2012 to
10.19% at March 31, 2013. This increase was due primarily to net income earned
during the period which more than offset the effect of the goodwill from the
prior year's acquisition. At March 31, 2013, the Company had a total
risk-based capital ratio of 15.48%, a tier 1 risk-based capital ratio of
14.23% and a tier 1 leverage ratio of 11.07%.

Non-performing loans totaled $49.5 million at March 31, 2013 compared to $72.2
million at March 31, 2012 and $57.9 million at December 31, 2012. Overall
credit quality continued to improve due to the resolution of existing problem
credits and limited migration of new credits to non-performing status.

Loan charge-offs, net of recoveries, totaled $1.8 million for the first
quarter of 2013 compared to net charge-offs of $5.0 million for the first
quarter of 2012 and net charge-offs of $0.8 million for the fourth quarter of
2012. The decrease in net charge-offs for the first quarter of 2013 compared
to the prior year quarter was due primarily to charge-offs taken on commercial
real estate and AD&C credits in the first quarter of 2012. The allowance for
loan and lease losses represented 1.61% of outstanding loans and leases and
83% of non-performing loans at March 31, 2013 compared to 1.98% of outstanding
loans and leases and 62% of non-performing loans at March 31, 2012 and 1.70%
of outstanding loans and leases and 74% of non-performing loans at December
31, 2012. Non-performing loans includes accruing loans 90 days or more past
due and restructured loans.

Income Statement Review

Net interest income for the first quarter of 2013 increased 9% compared to the
first quarter of 2012 due to an increase in average interest-earning assets
and lower funding costs. The Company's funding costs declined due to a lower
cost deposit mix and the restructuring of $160 million in Federal Home Loan
Bank advances during the fourth quarter of 2012 and the first quarter of 2013.
These factors were the primary drivers of the increase in the net interest
margin to 3.59% for the first quarter of 2013 compared to 3.56% for the first
quarter of 2012.

The provision for loan and lease losses was $0.1 million for the first quarter
of 2013 compared to $0.7 million for the first quarter of 2012 and $1.2
million for the fourth quarter of 2012. The decrease in the provision for the
first quarter of 2013 compared to both the first quarter of 2012 and the
fourth quarter of 2012 was due primarily to a decline in historical losses and
the impact of a lower level of non-performing loans at March 31, 2013.

Non-interest income increased 13% to $12.4 million for the first quarter of
2013 compared to $11.0 million for the first quarter of 2012.This increase
was driven by a 49% increase in income from mortgage banking activities due to
higher loan origination volumes and higher average gains on sales, both due to
historically low interest rates during the quarter. In addition, other
noninterest income increased over the prior year period due to a non-recurring
legal settlement and miscellaneous gains on sales of loans.

Non-interest expenses increased 4% to $27.8 million for the first quarter of
2013 compared to $26.7 million in the first quarter of 2012. This increase was
driven primarily by increases in salaries, incentive compensation and
occupancy expenses, due in part to the CommerceFirst acquisition. The non-GAAP
efficiency ratio improved to 60.80% for the first quarter of 2013 compared to
63.97% for the first quarter of 2012.

Conference Call

The Company's management will host a conference call to discuss its first
quarter results today at 2:00 P.M. (ET).A live Web cast of the conference
call is available through the Investor Relations' section of the Sandy Spring
Web site at www.sandyspringbank.com. Participants may call 1-888-317-6016. A
password is not necessary.Visitors to the Web site are advised to log on 10
minutes ahead of the scheduled start of the call.An internet-based replay
will be available at the Web site until 9:00 am (ET) May 20, 2013.A replay of
the teleconference will be available through the same time period by calling
1-877-344-7529 under conference call number 10027381.

About Sandy Spring Bancorp/Sandy Spring Bank

With $3.9 billion in assets, Sandy Spring Bancorp is the holding company for
Sandy Spring Bank and its principal subsidiaries, Sandy Spring Insurance
Corporation and West Financial Services, Inc.Sandy Spring Bancorp is the
largest publicly traded banking company headquartered and operating in
Maryland. Sandy Spring is a community banking organization that focuses its
lending and other services on businesses and consumers in the local market
area. Independent and community-oriented, Sandy Spring Bank was founded in
1868 and offers a broad range of commercial banking, retail banking and trust
services through 49 community offices in Anne Arundel, Carroll, Frederick,
Howard, Montgomery, and Prince George's counties in Maryland, and Arlington,
Fairfax and Loudoun counties in Virginia. Through its subsidiaries, Sandy
Spring Bank also offers a comprehensive menu of insurance and investment
management services. Visit www.sandyspringbank.com for more information about
Sandy Spring Bank.

Forward-Looking Statements

Sandy Spring Bancorp makes forward-looking statements in this news release and
in the conference call regarding this news release.These forward-looking
statements may include: statements of goals, intentions, earnings
expectations, and other expectations; estimates of risks and of future costs
and benefits; assessments of probable loan and lease losses; assessments of
market risk; and statements of the ability to achieve financial and other
goals.

Forward-looking statements are typically identified by words such as
"believe," "expect," "anticipate," "intend," "outlook," "estimate,"
"forecast," "project" and other similar words and expressions.Forward-looking
statements are subject to numerous assumptions, risks and uncertainties, which
change over time.Forward-looking statements speak only as of the date they
are made.Sandy Spring Bancorp does not assume any duty and does not undertake
to update its forward-looking statements.Because forward-looking statements
are subject to assumptions and uncertainties, actual results or future events
could differ, possibly materially, from those that Sandy Spring Bancorp
anticipated in its forward-looking statements and future results could differ
materially from historical performance.

Sandy Spring Bancorp's forward-looking statements are subject to the following
principal risks and uncertainties: 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; 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, 2012, including in the Risk Factors section of that report, and in its
other SEC reports.Sandy Spring Bancorp's forward-looking statements may also
be subject to other risks and uncertainties, including those that it may
discuss elsewhere in this news release or in its filings with the SEC,
accessible on the SEC's Web site at www.sec.gov.

                                                               
                                                               
Sandy Spring Bancorp, Inc. and                                  
Subsidiaries
FINANCIAL HIGHLIGHTS -                                          
UNAUDITED
                                                               
                              Three Months Ended                 
                              March 31,                          %
(Dollars in thousands, except  2013              2012             Change
per share data)
Results of Operations:                                          
Net interest income            $31,326         $28,705        9 %
Provision for loan and lease   78               664              (88)
losses
Non-interest income            12,419           10,974          13
Non-interest expenses          27,823           26,683          4
Income before income taxes     15,844           12,332          28
Net income                     10,558           8,476           25
                                                               
Pre-tax pre-provision          $15,922         $13,370        19
pre-merger expense income
                                                               
Return on average assets       1.08 %          0.94 %          
Return on average common       8.85 %           7.60 %          
equity
Net interest margin            3.59 %           3.56 %          
Efficiency ratio - GAAP basis  63.60 %          67.25 %         
(1)
Efficiency ratio - Non-GAAP    60.80 %          62.97 %         
basis (1)
                                                               
Per share data:                                                 
Basic net income               $0.42           $0.35          20 %
Diluted net income             $0.42           $0.35          20
Average fully diluted shares   25,002,612       24,180,501      3
Dividends declared per share   $0.14           $0.10          40
Book value per share           19.59            18.72            5
Tangible book value per share  15.70            14.83            6
Outstanding shares             24,954,892       24,143,985      3
                                                               
Financial Condition at                                          
period-end:
Investment securities          $1,008,693      $1,067,462     (6) %
Loans and leases               2,565,069        2,271,392       13
Interest-earning assets        3,660,809        3,416,136       7
Assets                         3,932,026        3,668,273       7
Deposits                       2,919,208        2,681,075       9
Interest-bearing liabilities   2,576,831        2,508,756       3
Stockholders' equity           488,946          451,917         8
                                                               
Capital ratios:                                                 
Tier 1 leverage                11.07 %          11.05 %          
Tier 1 capital to              14.23 %          14.89 %          
risk-weighted assets
Total regulatory capital to    15.48 %          16.14 %          
risk-weighted assets
Tangible common equity to      10.19 %          9.98 %           
tangible assets(2)
Average equity to average      12.26 %          12.33 %          
assets
                                                               
Credit quality ratios:                                          
Allowance for loan and lease   1.61 %           1.98 %          
losses to loans and leases
Non-performing loans to total  1.93 %           3.18 %          
loans
Non-performing assets to total 1.39 %           2.10 %          
assets
Allowance for loan and lease   83.38 %          62.43 %         
losses to non-performing loans
Annualized net charge-offs to  0.28 %           0.89 %          
average loans and leases(3)
                                                               
(1) The efficiency ratio - GAAP basis is non-interest expenses 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 and merger expenses from non-interest 
expense; securities gains (losses) from non-interest income; OTTI; and the
tax-equivalent adjustment to net interest income.See the Reconciliation
Table included with these Financial Highlights.
(2) 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 and other comprehensive gains              
(losses).See the Reconciliation Table included with these Financial
Highlights.
(3) Calculation utilizes average loans and leases, excluding residential     
mortgage loans held-for-sale.

                                                                
                                                                
                                                                
Sandy Spring Bancorp, Inc. and Subsidiaries                      
RECONCILIATION TABLE - UNAUDITED                                 
                                                                
                                                    Three Months Ended
                                                    March 31,
(Dollars in thousands)                               2013         2012
Pre-tax pre-provision pre-merger expense income:                 
Net income                                           $10,558    $8,476
Plus non-GAAP adjustment:                                        
Merger expenses                                      --         374
Income taxes                                         5,286       3,856
Provision for loan and lease losses                  78          664
Pre-tax pre-provision pre-merger expense income      $15,922    $13,370
                                                                
Efficiency ratio - GAAP basis:                                   
Non-interest expenses                                $27,823    $26,683
                                                                
Net interest income plus non-interest income         $43,745    $39,679
                                                                
Efficiency ratio - GAAP basis                        63.60%       67.25%
                                                                
                                                                
Efficiency ratio - Non-GAAP basis:                               
Non-interest expenses                                $27,823    $26,683
Less non-GAAP adjustment:                                        
Amortization of intangible assets                    461         461
Merger expenses                                      --          374
Non-interest expenses --as adjusted                 $27,362    $25,848
                                                                
Net interest income plus non-interest income         $43,745    $39,679
Plus non-GAAP adjustment:                                        
Tax-equivalent income                                1,311       1,376
Less non-GAAP adjustments:                                       
Securities gains                                     56          73
OTTI recognized in earnings                          --         (64)
Net interest income plus non-interest income - as    $45,000    $41,046
adjusted
                                                                
Efficiency ratio - Non-GAAP basis                    60.80%       62.97%
                                                                
Tangible common equity ratio:                                    
Total stockholders' equity                           $488,947   $451,917
Accumulated other comprehensive loss                 (9,732)     (12,838)
Goodwill                                             (84,808)    (76,816)
Other intangible assets, net                         (2,702)     (4,272)
Tangible common equity                               $391,705   $357,991
                                                                
Total assets                                         $3,932,026 $3,668,273
Goodwill                                             (84,808)    (76,816)
Other intangible assets, net                         (2,702)     (4,272)
Tangible assets                                      $3,844,516 $3,587,185
                                                                
Tangible common equity ratio                         10.19%       9.98%
                                                                
Outstanding common shares                            24,954,892  24,143,985
Tangible book value per common share                 $15.70     $14.83




Sandy Spring Bancorp, Inc. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF CONDITION- UNAUDITED
                                                               
                                       March 31,    December 31, March 31,
(Dollars in thousands)                  2013         2012         2012
Assets                                                          
Cash and due from banks                 $45,922    $59,540    $43,149
Federal funds sold                      476         466         1,012
Interest-bearing deposits with banks    38,188      26,400      58,144
Cash and cash equivalents               84,586      86,406      102,305
Residential mortgage loans held for     48,383      36,149      18,126
sale (at fair value)
Investments available-for-sale (at fair 766,080     825,582     878,365
value)
Investments held-to-maturity --- fair
value of $216,420, $222,024 and
$157,745 at March 31, 2013, December    211,376     215,814     153,544
31, 2012 and March 31, 2012,
respectively
Other equity securities                 31,237      33,636      35,553
Total loans and leases                  2,565,069   2,531,128   2,271,392
Less: allowance for loan and lease      (41,246)    (42,957)    (45,061)
losses
Net loans and leases                    2,523,823   2,488,171   2,226,331
Premises and equipment, net             47,701      48,326      48,748
Other real estate owned                 5,250       5,926       4,834
Accrued interest receivable             12,926      12,392      12,424
Goodwill                                84,808      84,808      76,816
Other intangible assets, net            2,702       3,163       4,272
Other assets                            113,154     114,833     106,955
Total assets                            $3,932,026 $3,955,206 $3,668,273
                                                               
Liabilities                                                     
Noninterest-bearing deposits            $832,679   $847,415   $685,770
Interest-bearing deposits               2,086,529   2,065,619   1,995,305
Total deposits                          2,919,208   2,913,034   2,681,075
Securities sold under retail repurchase 50,302      86,929      73,130
agreements and federal funds purchased
Advances from FHLB                      405,000     405,058     405,321
Subordinated debentures                 35,000      35,000      35,000
Accrued interest payable and other      33,569      31,673      21,830
liabilities
Total liabilities                       3,443,079   3,471,694   3,216,356
                                                               
Stockholders' Equity                                            
Common stock --- par value $1.00;
shares authorized 50,000,000; shares
issued and outstanding 24,954,892,      24,955      24,905      24,144
24,905,392 and 24,143,985 at March 31,
2013, December 31, 2012 and March 31,
2012, respectively
Additional paid in capital              191,615     191,689     177,949
Retained earnings                       262,645     255,606     236,986
Accumulated other comprehensive income  9,732       11,312      12,838
Total stockholders' equity              488,947     483,512     451,917
Total liabilities and stockholders'     $3,932,026 $3,955,206 $3,668,273
equity

                                                                   
                                                                   
                                                                   
Sandy Spring Bancorp, Inc. and Subsidiaries                         
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED             
                                                                   
                                                          Three Months Ended
                                                          March 31,
(Dollars in thousands, except per share data)              2013      2012
Interest Income:                                                    
Interest and fees on loans and leases                      $29,646 $27,129
Interest on loans held for sale                            353      149
Interest on deposits with banks                            19       21
Interest and dividends on investment securities:                    
Taxable                                                    3,934    4,943
Exempt from federal income taxes                           2,327    2,373
Interest on federal funds sold                             --       --
Total interest income                                      36,279   34,615
Interest Expense:                                                   
Interest on deposits                                       1,455    2,013
Interest on retail repurchase agreements and federal funds 49       61
purchased
Interest on advances from FHLB                             3,223    3,587
Interest on subordinated debt                              226      249
Total interest expense                                     4,953    5,910
Net interest income                                        31,326   28,705
Provision for loan and lease losses                        78       664
Net interest income after provision for loan and lease     31,248   28,041
losses
Non-interest Income:                                                
Investment securities gains                                56       73
Total other-than-temporary impairment ("OTTI") losses      --       (64)
Portion of OTTI losses recognized in other comprehensive   --       --
income, before taxes
Net OTTI recognized in earnings                            --       (64)
Service charges on deposit accounts                        2,069    2,200
Mortgage banking activities                                1,527    1,025
Wealth management income                                   4,042    4,057
Insurance agency commissions                               1,349    1,202
Income from bank owned life insurance                      612      634
Visa check fees                                            957      898
Other income                                               1,807    949
Total non-interest income                                  12,419   10,974
Non-interest Expenses:                                              
Salaries and employee benefits                             16,346   15,701
Occupancy expense of premises                              3,182    2,846
Equipment expenses                                         1,249    1,190
Marketing                                                  515      495
Outside data services                                      1,152    1,279
FDIC insurance                                             596      652
Amortization of intangible assets                          461      461
Other expenses                                             4,322    4,059
Total non-interest expenses                                27,823   26,683
Income before income taxes                                 15,844   12,332
Income tax expense                                         5,286    3,856
Net income                                                 $10,558 $8,476
                                                                   
Net Income Per Share Amounts:                                       
Basic net income per share                                 $0.42   $0.35
Diluted net income per share                               $0.42   $0.35
Dividends declared per share                               $0.14   $0.10




Sandy Spring Bancorp, Inc. and Subsidiaries
HISTORICAL TRENDS - QUARTERLY FINANCIAL DATA - UNAUDITED
                                                              
                  2013        2012
(Dollars in
thousands, except  Q1          Q4          Q3          Q2          Q1
per share data)
Profitability for                                              
the quarter:
Tax-equivalent     $37,590   $37,536   $38,819   $36,898   $35,991
interest income
Interest expense   4,953      5,282      5,710       5,749       5,910
Tax-equivalent net 32,637     32,254     33,109      31,149      30,081
interest income
Tax-equivalent     1,311      1,334      1,324       1,340       1,376
adjustment
Provision for loan 78         1,168      232         1,585       664
and lease losses
Non-interest       12,419     12,247     12,242      11,493      10,974
income
Non-interest       27,823     27,219     27,167      28,858      26,683
expenses
Income before      15,844     14,780     16,628      10,859      12,332
income taxes
Income tax expense 5,286      4,899      5,638       3,652       3,856
Net income         $10,558   $9,881    $10,990   $7,207    $8,476
Financial                                                      
performance:
Pre-tax
pre-provision      $15,922   $15,740   $16,996   $14,642   $13,370
pre-merger expense
income
Return on average  1.08%       1.01%       1.13%       0.78%       0.94%
assets
Return on average  8.85%       8.14%       9.22%       6.34%       7.60%
common equity
Net interest       3.59%       3.53%       3.67%       3.62%       3.56%
margin
Efficiency ratio - 63.60%      63.06%      61.70%      69.87%      67.25%
GAAP basis (1)
Efficiency ratio - 60.80%      60.54%      58.91%      61.54%      62.97%
Non-GAAP basis (1)
Per share data:                                                
Basic net income   $0.42     $0.40     $0.44     $0.30     $0.35
per share
Diluted net income $0.42     $0.40     $0.44     $0.30     $0.35
per share
Average fully      25,002,612  24,971,249  24,949,205  24,423,236  24,180,501
diluted shares
Dividends declared $0.14     $0.14     $0.12     $0.12     $0.10
per common share
Non-interest                                                   
income:
Securities gains   $56       $--       $296      $90       $73
Net OTTI
recognized in      --         (14)       (23)       (8)        (64)
earnings
Service charges on 2,069      2,197      2,230       2,283       2,200
deposit accounts
Mortgage banking   1,527      1,738      1,981       1,288       1,025
activities
Wealth management  4,042      4,000      3,858       4,034       4,057
income
Insurance agency   1,349      1,334      1,020       934         1,202
commissions
Income from bank
owned life         612        662        660         660         634
insurance
Visa check fees    957        1,043      984         962         898
Other income       1,807      1,287      1,236       1,250       949
Total non-interest $12,419   $12,247   $12,242   $11,493   $10,974
income
Non-interest                                                   
expense:
Salaries and       $16,346   $15,405   $15,476   $15,927   $15,701
employee benefits
Occupancy expense  3,182      3,115      3,106      2,943      2,846
of premises
Equipment expenses 1,249      1,189      1,237      1,255      1,190
Marketing          515        827        764        565        495
Outside data       1,152      836        1,076      1,828      1,279
services
FDIC insurance     596        601        667        653        652
Amortization of    461        478        476        466        461
intangible assets
Professional fees  1,287       1,584       1,282       2,156       1,287
Other real estate  37          316         174         351         64
owned expenses
Other expenses     2,998       2,868       2,909       2,714       2,708
Total non-interest $27,823   $27,219   $27,167   $28,858   $26,683
expense
                                                              
(1) The efficiency ratio - GAAP basis is non-interest expenses 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 and merger expenses from non-interest
expense; excludes securities gains; OTTI losses from non-interest income; and
adds the tax-equivalent adjustment to net interest income.See the
Reconciliation Table included with these Financial Highlights.




Sandy Spring Bancorp, Inc. and Subsidiaries
HISTORICAL TRENDS - QUARTERLY FINANCIAL DATA - UNAUDITED
                                                               
                   2013        2012
(Dollars in         Q1          Q4          Q3          Q2          Q1
thousands)
Balance sheets at                                               
quarter end:
Residential         $538,346  $523,364  $499,806  $472,426  $465,204
mortgage loans
Residential         122,698     120,314     128,606     130,791     122,841
construction loans
Commercial ADC      150,599     151,933     133,007     151,620     149,814
loans
Commercial investor 487,802     456,888     447,536     443,237     392,626
real estate loans
Commercial owner
occupied real       565,820     571,510     579,711     579,812     525,022
estate loans
Commercial business 344,489     346,708     322,087     334,040     253,827
loans
Leasing             1,974       3,421       4,233       5,618       5,843
Consumer loans      353,341     356,990     353,999     357,534     356,215
Total loans and     2,565,069   2,531,128   2,468,985   2,475,078   2,271,392
leases
Allowance for loan  (41,246)    (42,957)    (42,618)    (45,265)    (45,061)
and lease losses
Investment          1,008,693   1,075,032   1,074,918   1,006,743   1,067,462
securities
Interest-earning    3,660,809   3,669,175   3,614,310   3,584,480   3,416,136
assets
Total assets        3,932,026   3,955,206   3,887,427   3,855,177   3,668,273
Noninterest-bearing 832,679     847,415     818,674     763,566     685,770
demand deposits
Total deposits      2,919,208   2,913,034   2,880,262   2,852,055   2,681,075
Customer repurchase 50,302      51,929      58,306      64,779      73,130
agreements
Total
interest-bearing    2,576,831   2,592,606   2,560,040   2,593,501   2,508,756
liabilities
Total stockholders' 488,947     483,512     481,810     471,464     451,917
equity
Quarterly average                                               
balance sheets:
Residential         $575,889  $542,095  $510,475  $488,644  $474,149
mortgage loans
Residential         120,283    125,640    133,236    125,582    116,630
construction loans
Commercial ADC      148,749    137,679    142,870    151,374    159,769
loans
Commercial investor 474,062    453,074    445,012    410,258    377,072
real estate loans
Commercial owner
occupied real       567,723    577,693    580,994    539,590    518,763
estate loans
Commercial business 347,569    322,501    332,364    284,271    258,099
loans
Leasing             2,510      3,773      4,858      5,528      6,325
Consumer loans      357,366    356,452    357,135    359,008    358,783
Total loans and     2,594,151  2,518,907  2,506,945  2,364,255  2,269,590
leases
Investment          1,051,769   1,072,278   1,038,586   1,052,502   1,086,295
securities
Interest-earning    3,677,444   3,639,605   3,599,715   3,453,590   3,389,843
assets
Total assets        3,946,578   3,908,479   3,863,951   3,708,622   3,637,674
Noninterest-bearing 797,926     824,188     774,215     699,638     641,477
demand deposits
Total deposits      2,860,451   2,891,120   2,857,523   2,714,980   2,642,634
Customer repurchase 52,622     60,941     62,693     66,674     65,195
agreements
Total
interest-bearing    2,631,198   2,571,937   2,587,815   2,526,541   2,523,394
liabilities
Total stockholders' 483,664     482,621     474,231     457,338     448,406
equity
Financial Measures                                              
Average equity to   12.26%      12.35%      12.27%      12.33%      12.33%
average assets
Investment
securities to       27.55%      29.30%      29.74%      28.09%      31.25%
earning assets
Loans to earnings   70.07%      68.98%      68.31%      69.05%      66.49%
assets
Loans to assets     65.24%      63.99%      63.51%      64.20%      61.92%
Loans to deposits   87.87%      86.89%      85.72%      86.78%      84.72%
Capital measures:                                               
Tier 1 leverage     11.07%      10.98%      10.99%      11.21%      11.05%
Tier 1 capital to
risk-weighted       14.23%      14.15%      14.31%      14.12%      14.89%
assets
Total regulatory
capital to          15.48%      15.40%      15.56%      15.36%      16.14%
risk-weighted
assets
Book value per      $19.59    $19.41    $19.35    $18.94    $18.72
share
Outstanding shares  24,954,892 24,905,392 24,896,136 24,886,724 24,143,985




Sandy Spring Bancorp, Inc. and Subsidiaries
LOAN PORTFOLIO QUALITY DETAIL - UNAUDITED
                                                              
                     2013      2012
(Dollars in           March 31, December 31, September  June 30,  March 31,
thousands)                                   30,
Non-Performing                                                 
Assets:
Loans and leases 90                                            
days past due:
Commercial business   $--     $24        $44      $70      $40
Commercial real                                                
estate:
Commercial AD&C       --       --          --        342       --
Commercial investor   --       --          --        --        --
real estate
Commercial owner      --       209         --        --        --
occupied real estate
Leasing               --       --          127       96        --
Consumer              54       14          18        5         89
Residential real                                               
estate:
Residential mortgage  --       --          116       91        167
Residential           --       --          --        --        --
construction
Total loans and
leases 90 days past   54       247         305       604       296
due
Non-accrual loans and                                          
leases:
Commercial business   4,012    4,611       4,919     4,583     6,542
Commercial real                                                
estate:
Commercial AD&C       5,826    6,332       8,957     13,055    14,303
Commercial investor   12,353   11,843      12,345    13,327    13,893
real estate
Commercial owner      5,346    13,681      13,742    15,146    16,295
occupied real estate
Leasing               --       865         834       872       858
Consumer              2,388    2,410       1,607     1,651     1,700
Residential real                                               
estate:
Residential mortgage  5,393    4,681       3,644     2,600     4,818
Residential           3,258    3,125       3,236     4,333     4,929
construction
Total non-accrual     38,576   47,548      49,284    55,567    63,338
loans and lease
Total restructured    10,839   10,110      9,277     8,285     8,547
loans - accruing
Total non-performing  49,469   57,905      58,866    64,456    72,181
loans and leases
Other assets and real 5,250    5,926       9,291     9,553     4,834
estate owned (OREO)
Total non-performing  $54,719 $63,831    $68,157  $74,009  $77,015
assets
                                                              
                     For the quarter ended,
                     March 31, December    September June 30, March 31,
                                31,         30,
(Dollars in           2013      2012         2012       2012       2012
thousands)
Analysis of
Non-accrual Loan and                                           
Lease Activity:
Balance at beginning  $47,548 $49,284    $55,567  $63,338  $71,680
of period
Non-accrual balances  (92)     (400)       (232)     (2,131)   --
transferred to OREO
Non-accrual balances  (2,175)  (979)       (3,697)   (1,663)   (4,965)
charged-off
Net payments or draws (11,768) (3,852)     (6,342)   (4,149)   (5,061)
Loans placed on       5,493    5,023       3,988     1,261     1,809
non-accrual
Non-accrual loans     (430)    (1,528)     --        (1,089)   (125)
brought current
Balance at end of     $38,576 $47,548    $49,284  $55,567  $63,338
period
                                                              
Analysis of Allowance                                          
for Loan Losses:
Balance at beginning  $42,957 $42,618    $45,265  $45,061  $49,426
of period
Provision for loan    78       1,168       232       1,585     664
and lease losses
Less loans
charged-off, net of                                            
recoveries:
Commercial business   1,744    (76)        (225)     (185)     (39)
Commercial real                                                
estate:
Commercial AD&C       (1,020)  (248)       1,983     (59)      1,076
Commercial investor   31       110         123       140       3,219
real estate
Commercial owner      81       --          653       484       --
occupied real estate
Leasing               --       --          (17)      (3)       5
Consumer              508      384         111       228       348
Residential real                                               
estate:
Residential mortgage  447      508         253       713       420
Residential           (2)      151         (2)       63        --
construction
Net charge-offs       1,789    829         2,879     1,381     5,029
Balance at end of     $41,246 $42,957    $42,618  $45,265  $45,061
period
                                                              
Asset Quality Ratios:                                          
Non-performing loans  1.93%     2.29%        2.38%      2.60%      3.18%
to total loans
Non-performing assets 1.39%     1.61%        1.75%      1.92%      2.10%
to total assets
Allowance for loan    1.61%     1.70%        1.73%      1.83%      1.98%
losses to loans
Allowance for loan
losses to             83.38%    74.18%       72.40%     70.23%     62.43%
non-performing loans
Net charge-offs in
quarter to average    0.28%     0.13%        0.46%      0.23%      0.89%
loans




Sandy Spring Bancorp, Inc. and Subsidiaries
CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES - UNAUDITED
                                                                    
                   Three Months Ended March 31,
                   2013                             2012
                                      Annualized                    Annualized
                   Average    (1)     Average     Average    (1)     Average
(Dollars in
thousands and       Balances   Interest  Yield/Rate  Balances   Interest  Yield/Rate
tax-equivalent)
Assets                                                               
Residential         $575,889 $5,376  3.73 %     $474,149 $5,360  4.55 %
mortgage loans (2)
Residential         120,283    1,004     3.38        116,630    1,101     3.80
construction loans
Commercial ADC      148,749    1,996     5.44        159,769    1,968     4.96
loans
Commercial investor 474,062    6,135     5.25        377,072    5,148     5.49
real estate loans
Commercial owner
occupied real       567,723    7,801     5.71        518,763    7,260     5.69
estate loans
Commercial business 347,569    4,586     5.21        258,099    3,151     4.80
loans
Leasing             2,510      38        6.07        6,325      103       6.52
Consumer loans      357,366    3,063     3.51        358,783    3,187     3.60
Total loans and     2,594,151  29,999    4.71        2,269,590  27,278    4.84
leases (3)
Taxable securities  754,112    4,305     2.28        809,939    5,273     2.60
Tax-exempt          297,657    3,267     4.39        276,356    3,419     4.95
securities (4)
Interest-bearing    31,050     19        0.25        32,871     21        0.25
deposits with banks
Federal funds sold  474        --      0.22        1,087      --      0.14
Total
interest-earning    3,677,444  37,590    4.13        3,389,843  35,991    4.26
assets
                                                                    
Less:allowance for
loan and lease      (43,705)                       (49,567)            
losses
Cash and due from   46,888                         45,058              
banks
Premises and        48,167                         48,554              
equipment, net
Other assets        217,784                        203,786             
Total assets        $                             $                  
                    3,946,578                        3,637,674
                                                                    
Liabilities and
Stockholders'                                                        
Equity
Interest-bearing    $423,485 92       0.09 %      $362,730 87       0.10 %
demand deposits
Regular savings     234,492    48       0.08        200,604    46        0.09
deposits
Money market        892,343    411       0.19        859,121    512       0.24
savings deposits
Time deposits       512,205    904       0.72        578,702    1,368     0.95
Total
interest-bearing    2,062,525  1,455     0.29        2,001,157  2,013     0.40
deposits
Other borrowings    65,601     49        0.30        81,878     61        0.30
Advances from FHLB  468,072    3,223     2.79        405,359    3,587     3.56
Subordinated        35,000     226       2.58        35,000     249       2.85
debentures
Total
interest-bearing    2,631,198  4,953     0.76        2,523,394  5,910     0.94
liabilities
                                                                    
Noninterest-bearing 797,926                        641,477             
demand deposits
Other liabilities   33,790                         24,397              
Stockholders'       483,664                        448,406             
equity
Total liabilities   $                               $
and stockholders'   3,946,578                      3,637,674           
equity
                                                                    
Net interest income           $32,637 3.37 %                $30,081 3.32 %
and spread
Less:
tax-equivalent                1,311                         1,376    
adjustment
Net interest income           $31,326                      $28,705 
                                                                    
Interest
income/earning                         4.13 %                         4.26 %
assets
Interest
expense/earning                        0.54                           0.70
assets
Net interest margin                    3.59 %                         3.56 %
                                                                    
(1) Tax-equivalent income has been adjusted using the combined marginal federal and
state rate of 39.88% for 2013 and2012. The annualized taxable-equivalent adjustments
utilized in the above table to compute yields aggregated to $1.3 million and $1.4
million in 2013 and 2012, respectively.
(2) Includes residential mortgage loans held for sale. Home equity loans and lines are
classified as consumer loans.
(3) Non-accrual loans are included in the average balances.
(4) Includes only investments that are exempt from federal taxes.

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

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