Sandy Spring Bancorp Reports Second Quarter Net Income of $12.1 Million, an Increase of 69% Over Prior Year

Sandy Spring Bancorp Reports Second Quarter Net Income of $12.1 Million, an
Increase of 69% Over Prior Year

OLNEY, Md., July 18, 2013 (GLOBE NEWSWIRE) -- Sandy Spring Bancorp, Inc.,
(Nasdaq:SASR) the parent company of Sandy Spring Bank, today announced net
income for the second quarter of 2013 of $12.1 million ($0.49 per diluted
share) compared to net income of $7.2 million ($0.30 per diluted share) for
the second quarter of 2012 and net income of $10.6 million ($0.42 per diluted
share) for the first quarter of 2013.

Net income for the six-month period ended June 30, 2013 totaled $22.7 million
($0.91 per diluted share) compared to net income of $15.7 million ($0.65 per
diluted share) for the prior year period, an increase of 45%.

"We are pleased to report that we maintained our strong earnings momentum
during the second quarter. The primary drivers of these results were continued
improvement in credit quality metrics due to loan recoveries combined with
growth in non-interest income, primarily from our wealth management and
insurance operations, and lower non-interest expenses," said Daniel J.
Schrider, President and Chief Executive Officer.

"The credit to our provision for loan and lease losses for the quarter
reflects recoveries from loan workouts and is a product of our aggressive
efforts to address problem loans early in the current credit cycle.

"While loan growth has been especially challenging due to the state of the
economy and uncertainty over the timing of reductions in the Federal Reserve's
monthly securities purchases, we have worked to limit the decline in our net
interest margin through disciplined management of our funding costs," said
Schrider.

Second Quarter Highlights:

  *Pre-tax pre-provision income, a non-GAAP measure, was $15.6 million for
    the second quarter of 2013, a 7% increase over the second quarter of 2012
    and a 2% decrease compared to the first quarter of 2013.
  *The provision for loan and lease losses for the second quarter of 2013 was
    a credit of $2.9 million compared to a charge of $1.6 million for the
    second quarter of 2012 and a charge of $0.1 million for the first quarter
    of 2013. This improvement in the provision was due to a decline in
    historical net charge-offs, a lower migration of new problem loans into
    non-performing status, and loan recoveries during the quarter.
  *Non-performing loans decreased to $46.2 million at June 30, 2013 compared
    to $64.5 million at June 30, 2012 and $49.5 million at March 31, 2013. The
    coverage ratio of the allowance for loan and lease losses to
    non-performing loans was 84% at June 30, 2013 compared to a coverage ratio
    of 70% at June 30, 2012 and 83% at March 31, 2013.
  *The net interest margin was 3.51% for the second quarter of 2013, compared
    to 3.62% for the second quarter of 2012 and 3.59% for the first quarter of
    2013. The decrease in the margin was due primarily to the decline in the
    yield on a higher level of earning assets which more than offset the lower
    cost of deposits and borrowings.
  *Non-interest income increased 6% for the quarter compared to the prior
    year quarter and decreased 2% compared to the first quarter of 2013. The
    increase over the prior year quarter was due primarily to growth in income
    from wealth management, insurance agency commissions and other
    non-interest income. The decrease compared to the first quarter of 2013
    was due primarily to a decline in income from mortgage banking and other
    non-interest income.
  *Total loans increased 5% compared to the second quarter of 2012 and 2%
    compared to the first quarter of 2013 due primarily to organic loan growth
    in the commercial investor real estate and residential mortgage
    portfolios.

Review of Balance Sheet and Credit Quality

Total assets increased 6% to $4.1 billion at June 30, 2013 as compared to June
30, 2012. Total loans and leases increased 5% to $2.6 billion compared to the
prior year due primarily to the growth in the specific loan portfolios
mentioned above.

Customer funding sources, which include deposits and other short-term
borrowings from customers, increased 2% compared to June 30, 2012. This
increase was due primarily to a 15% increase in noninterest-bearing and
interest-bearing checking account balances. The Company considers the growth
in checking accounts to be an important performance metric as such accounts
typically are the primary drivers of growth in multiple product banking
relationships with clients. Certificates of deposit declined 19% and FHLB
advances increased 33% at June 30, 2013 compared to balances at June 30, 2012,
as the Company managed its funding mix to take advantage of current low
interest rates to maintain the net interest margin.

Tangible common equity totaled $401.7 million at June 30, 2013 compared to
$371.0 million at June 30, 2012 resulting in an increase in the ratio of
tangible common equity to tangible assets from 9.84% at June 30, 2012 to
10.08% at June 30, 2013. This increase was due primarily to net income earned
during the period. At June 30, 2013, the Company had a total risk-based
capital ratio of 15.55%, a tier 1 risk-based capital ratio of 14.30% and a
tier 1 leverage ratio of 11.28%.

Non-performing loans totaled $46.2 million at June 30, 2013 compared to $64.5
million at June 30, 2012 and $49.5 million at March 31, 2013. 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 $0.6 million in net recoveries
for the second quarter of 2013 compared to net charge-offs of $1.4 million for
the second quarter of 2012 and net charge-offs of $1.8 million for the first
quarter of 2013. This improvement for the second quarter of 2013 compared to
the prior year quarter was due primarily to recoveries on existing problem
credits and reduced charge-offs in the current quarter due to lower
non-performing loans. The allowance for loan and lease losses represented
1.50% of outstanding loans and leases and 84% of non-performing loans at June
30, 2013 compared to 1.83% of outstanding loans and leases and 70% of
non-performing loans at June 30, 2012 and 1.61% of outstanding loans and
leases and 83% of non-performing loans at March 31, 2013. Non-performing loans
includes accruing loans 90 days or more past due and restructured loans.

Income Statement Review

Net interest income for the second quarter of 2013 increased 4% compared to
the second quarter of 2012 due to an increase in average interest-earning
assets and lower funding costs which more than offset the decline in asset
yields. The Company's funding costs declined due to a lower cost deposit mix
and the restructuring of $170 million in Federal Home Loan Bank advances
during the fourth quarter of 2012 and the first six months of 2013. The net
interest margin decreased to 3.51% for the second quarter of 2013 compared to
3.62% for the second quarter of 2012 due to lower yields on a higher amount of
interest-earning assets.

The provision for loan and lease losses was a credit of $2.9 million for the
second quarter of 2013 compared to a charge of $1.6 million for the second
quarter of 2012 and a charge of $0.1 million for the first quarter of 2013.
The decrease in the provision for the second quarter of 2013 compared to both
the second quarter of 2012 and the first quarter of 2013 was due primarily to
a decline in historical losses, recoveries during the period and a lower
migration of new problem loans into non-performing status.

Non-interest income increased 6% to $12.2 million for the second quarter of
2013 compared to $11.5 million for the second quarter of 2012. This increase
was driven by a 12% increase in wealth management income due to higher assets
under management. In addition, other non-interest income increased 20% due to
gains on sales and dispositions of loans.

Non-interest expenses decreased 5% to $27.5 million for the second quarter of
2013 compared to $28.9 million in the second quarter of 2012. This decrease
was driven primarily by declines in outside data services and other
non-interest expenses due to merger expenses recorded in the second quarter of
2012 relating to the CommerceFirst acquisition. The non-GAAP efficiency ratio
improved to 60.92% for the second quarter of 2013 compared to 61.55% for the
second quarter of 2012.

Net interest income for the first six months of 2013 increased 6% compared to
the second quarter of 2012 due to an increase in average interest-earning
assets and lower funding costs. The net interest margin decreased to 3.55% for
the first six months of 2013 compared to 3.59% for the first six months of
2012 due largely to the factors cited previously with respect to the second
quarter of 2013.

The provision for loan and lease losses was a credit of $2.8 million for the
first six months of 2013 compared to a charge of $2.2 million for first six
months of 2012. The decrease in the provision for the period was due primarily
to a decline in historical losses, a lower migration of new problem loans into
non-performing status, and loan recoveries during the period.

Non-interest income increased 10% to $24.6 million for the first six months of
2013 compared to $22.5 million for the first six months of 2012. This increase
was driven by a 19% increase in income from mortgage banking activities due to
higher loan origination volumes. In addition, wealth management income
increased 6% due to higher assets under management while insurance agency
commissions increased 12% due to higher revenues on commercial and physicians
liability lines. Other non-interest income increased 50% due to gains on sales
and dispositions of loans and a non-recurring legal settlement.

Non-interest expenses decreased to $55.3 million for the first six months of
2013 compared to $55.5 million in the first six months of 2012. This decrease
was driven primarily by declines in outside data services and other
noninterest expenses which were due to merger expenses from the CommerceFirst
acquisition recorded in the second quarter of 2012. These decreases were
somewhat offset by an increase in salaries and benefits expenses due to
additional staff and higher incentive compensation. The non-GAAP efficiency
ratio improved to 60.86% for the first six months of 2013 compared to 62.25%
for the first six months of 2012.

Conference Call

The Company's management will host a conference call to discuss its second
quarter results today at 2:00 P.M. (ET). A live 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) August 19, 2013. A replay
of the teleconference will be available through the same time period by
calling 1-877-344-7529 under conference call number 10030473.

About Sandy Spring Bancorp/Sandy Spring Bank

With $4.1 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             Six Months Ended       
                June 30,                 %      June 30,                 %
(Dollars in
thousands,       2013        2012         Change 2013        2012         Change
except per share
data)
Results of                                                           
Operations:
Net interest     $30,932   $29,809    4%     $62,258   $58,514    6%
income
Provision for
loan and lease   (2,876)    1,585        --     (2,798)     2,249        --
losses
Non-interest     12,215     11,493      6      24,634     22,467      10
income
Non-interest     27,508     28,858      (5)    55,331     55,541      --
expenses
Income before    18,515     10,859      71     34,359     23,191      48
income taxes
Net income      12,162     7,207       69     22,720     15,683      45
                                                                    
Pre-tax
pre-provision    $15,639   $14,642    7      $31,561   $28,012    13
pre-merger
expense income
                                                                    
Return on        1.23%      0.78%             1.16%      0.86%       
average assets
Return on
average common   9.98%      6.34%             9.42%      6.96%       
equity
Net interest     3.51%      3.62%             3.55%      3.59%       
margin
Efficiency ratio 63.75%     69.87%            63.68%     68.59%      
- GAAP basis (1)
Efficiency ratio
- Non-GAAP       60.92%     61.55%            60.86%     62.25%      
basis(1)
                                                                    
Per share data:                                                      
Basic net income $0.49     $0.30      63%    $0.91     $0.65      40%
Diluted net      $0.49     $0.30      63     $0.91     $0.65      40
income
Average fully    25,009,092 24,423,236  2      25,006,161 24,303,095  3
diluted shares
Dividends
declared per     $0.16     $0.12      33     $0.30     $0.22      36
share
Book value per   19.45      18.94        3      19.45      18.94        3
share
Tangible book    16.09      14.91        8      16.09      14.91        8
value per share
Outstanding      24,967,558 24,886,724  --    24,967,558 24,886,724  --
shares
                                                                    
Financial
Condition at                                                         
period-end:
Investment       $1,102,209 $1,006,743 9%     $1,102,209 $1,006,743 9%
securities
Loans and leases 2,605,458  2,475,078   5      2,605,458  2,475,078   5
Interest-earning 3,802,682  3,584,480   6      3,802,682  3,584,480   6
assets
Assets           4,072,617  3,855,177   6      4,072,617  3,855,177   6
Deposits         2,926,650  2,852,055   3      2,926,650  2,852,055   3
Interest-bearing 2,678,490  2,593,501   3      2,678,490  2,593,501   3
liabilities
Stockholders'    485,643    471,464     3      485,643    471,464     3
equity
                                                                    
Capital ratios:                                                      
Tier 1 leverage 11.28%     11.21%             11.28%     11.21%      
Tier 1 capital
to risk-weighted 14.30%     14.12%             14.30%     14.12%      
assets
Total regulatory
capital to       15.55%     15.37%             15.55%     15.37%      
risk-weighted
assets
Tangible common
equity to        10.08%     9.84%              10.08%     9.84%       
tangible
assets(2)
Average equity
to average       12.35%     12.33%             12.30%     12.33%      
assets
                                                                    
Credit quality                                                       
ratios:
Allowance for
loan and lease   1.50%      1.83%             1.50%      1.83%       
losses to loans
and leases
Non-performing
loans to total   1.77%      2.60%             1.77%      2.60%       
loans
Non-performing
assets to total  1.25%      1.92%             1.25%      1.92%       
assets
Allowance for
loan and lease
losses to        84.46%     70.23%            84.46%     70.23%      
non-performing
loans
Annualized net
charge-offs to   (0.10)%    0.23%             0.09%      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        Six Months Ended
                          June 30,                  June 30,
(Dollars in thousands)     2013         2012         2013         2012
Pre-tax pre-provision                                          
pre-merger expense income:
Net income                 $12,162    $7,207     $22,720    $15,683
Plus non-GAAP adjustment:                                      
Merger expenses            --         2,198       --         2,572
Income taxes               6,353       3,652       11,639      7,508
Provision for loan and     (2,876)     1,585       (2,798)     2,249
lease losses
Pre-tax pre-provision      $15,639    $14,642    $31,561    $28,012
pre-merger expense income
                                                              
Efficiency ratio - GAAP                                        
basis:
Non-interest expenses     $27,508    $28,858    $55,331    $55,541
                                                              
Net interest income plus   $43,147    $41,302    $86,892    $80,981
non-interest income
                                                              
Efficiency ratio - GAAP    63.75%       69.87%       63.68%       68.59%
basis
                                                              
Efficiency ratio -                                             
Non-GAAP basis:
Non-interest expenses     $27,508    $28,858    $55,331    $55,541
Less non-GAAP adjustment:                                      
Amortization of intangible 461         466         922         927
assets
Merger expenses            --          2,198       --          2,572
Non-interest expenses      $27,047    $26,194    $54,409    $52,042
--as adjusted
                                                              
Net interest income plus   $43,147    $41,302    $86,892    $80,981
non-interest income
Plus non-GAAP adjustment:                                      
Tax-equivalent income      1,312       1,340       2,623       2,716
Less non-GAAP adjustments:                                     
Securities gains           62          90          118         163
OTTI recognized in         --         (8)         --          (72)
earnings
Net interest income plus
non-interest income - as   $44,397    $42,560    $89,397    $83,606
adjusted
                                                              
Efficiency ratio -         60.92%       61.55%       60.86%       62.25%
Non-GAAP basis
                                                              
Tangible common equity                                         
ratio:
Total stockholders' equity $485,643   $471,464   $485,643   $471,464
Accumulated other          2,425       (14,577)    2,425       (14,577)
comprehensive loss
Goodwill                   (84,171)    (81,892)    (84,171)    (81,892)
Other intangible assets,   (2,241)     (4,017)     (2,241)     (4,017)
net
Tangible common equity     $401,656   $370,978   $401,656   $370,978
                                                              
Total assets               $ 4,072,617 $3,855,177 $ 4,072,617 $3,855,177
Goodwill                   (84,171)    (81,892)    (84,171)    (81,892)
Other intangible assets,   (2,241)     (4,017)     (2,241)     (4,017)
net
Tangible assets            $ 3,986,205 $3,769,268 $ 3,986,205 $3,769,268
                                                              
Tangible common equity     10.08%       9.84%        10.08%       9.84%
ratio
                                                              
Outstanding common shares  24,967,558  24,886,724  24,967,558  24,886,724
Tangible book value per    $16.09     $14.91     $16.09     $14.91
common share



Sandy Spring Bancorp, Inc. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF CONDITION- UNAUDITED
                                                               
                                       June 30,     December 31, June 30,
(Dollars in thousands)                  2013         2012         2012
Assets                                                          
Cash and due from banks                 $41,525    $59,540    $46,002
Federal funds sold                      475         466         467
Interest-bearing deposits with banks    65,507      26,400      76,365
Cash and cash equivalents               107,507     86,406      122,834
Residential mortgage loans held for     29,033      36,149      25,827
sale (at fair value)
Investments available-for-sale (at fair 838,440     825,582     808,881
value)
Investments held-to-maturity --- fair
value of $220,838, $222,024 and         226,457     215,814     164,846
$169,396 at June 30, 2013, December 31,
2012 and June 30, 2012, respectively
Other equity securities                 37,312      33,636      33,016
Total loans and leases                  2,605,458   2,531,128   2,475,078
Less: allowance for loan and lease      (39,015)    (42,957)    (45,265)
losses
Net loans and leases                    2,566,443   2,488,171   2,429,813
Premises and equipment, net             46,901      48,326      49,240
Other real estate owned                 4,831       5,926       9,553
Accrued interest receivable             13,071      12,392      13,456
Goodwill                                84,171      84,808      81,892
Other intangible assets, net           2,241       3,163       4,017
Other assets                            116,210     114,833     111,802
Total assets                            $4,072,617 $3,955,206 $3,855,177
                                                               
Liabilities                                                     
Noninterest-bearing deposits            $877,891   $847,415   $763,566
Interest-bearing deposits               2,048,759   2,065,619   2,088,489
Total deposits                          2,926,650   2,913,034   2,852,055
Securities sold under retail repurchase 54,731      86,929      64,779
agreements and federal funds purchased
Advances from FHLB                      540,000     405,058     405,233
Subordinated debentures                 35,000      35,000      35,000
Accrued interest payable and other      30,593      31,673      26,646
liabilities
Total liabilities                       3,586,974   3,471,694   3,383,713
                                                               
Stockholders' Equity                                            
Common stock --- par value $1.00;
shares authorized 50,000,000; shares
issuedand outstanding 24,967,558,      24,968      24,905      24,887
24,905,392 and 24,886,724 at June 30,
2013, December 31, 2012 and June 30,
2012, respectively
Additional paid in capital              192,327     191,689     190,733
Retained earnings                       270,773     255,606     241,267
Accumulated other comprehensive income  (2,425)     11,312      14,577
(loss)
Total stockholders' equity              485,643     483,512     471,464
Total liabilities and stockholders'     $4,072,617 $3,955,206 $3,855,177
equity



Sandy Spring Bancorp, Inc. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
                                                                 
                                      Three Months Ended  Six Months Ended
                                      June 30,            June 30,
(Dollars in thousands, except per      2013      2012      2013      2012
share data)
Interest Income:                                                  
Interest and fees on loans and leases  $29,212 $28,338 $58,858 $55,467
Interest on loans held for sale        309      190      662      339
Interest on deposits with banks        24       24       43       45
Interest and dividends on investment                              
securities:
Taxable                                3,919    4,662    7,853    9,605
Exempt from federal income taxes       2,315    2,343    4,642    4,716
Interest on federal funds sold         --       1        --      1
Total interest income                  35,779   35,558   72,058   70,173
Interest Expense:                                                 
Interest on deposits                   1,396    1,871    2,851    3,884
Interest on retail repurchase          38       51       87       112
agreements and federal funds purchased
Interest on advances from FHLB         3,189    3,586    6,412    7,173
Interest on subordinated debt          224      241      450      490
Total interest expense                 4,847    5,749    9,800    11,659
Net interest income                    30,932   29,809   62,258   58,514
Provision for loan and lease losses    (2,876)  1,585    (2,798)  2,249
Net interest income after provision    33,808   28,224   65,056   56,265
for loan and lease losses
Non-interest Income:                                              
Investment securities gains            62       90       118      163
Total other-than-temporary impairment  --       (8)      --       (72)
("OTTI") losses
Portion of OTTI losses recognized in
other comprehensive income, before     --       --       --       --
taxes
Net OTTI recognized in earnings        --       (8)      --       (72)
Service charges on deposit accounts    2,150    2,283    4,219    4,483
Mortgage banking activities            1,237    1,288    2,764    2,313
Wealth management income               4,532    4,034    8,574    8,091
Insurance agency commissions           1,036    934      2,385    2,136
Income from bank owned life insurance  623      660      1,235    1,294
Visa check fees                        1,079    962      2,036    1,860
Other income                           1,496    1,250    3,303    2,199
Total non-interest income              12,215   11,493   24,634   22,467
Non-interest Expenses:                                            
Salaries and employee benefits         16,163   15,927   32,509   31,628
Occupancy expense of premises          2,996    2,943    6,178    5,789
Equipment expenses                     1,227    1,255    2,476    2,445
Marketing                              755      565      1,270    1,060
Outside data services                  1,114    1,828    2,266    3,107
FDIC insurance                         581      653      1,177    1,305
Amortization of intangible assets      461      466      922      927
Other expenses                         4,211    5,221    8,533    9,280
Total non-interest expenses            27,508   28,858   55,331   55,541
Income before income taxes             18,515   10,859   34,359   23,191
Income tax expense                     6,353    3,652    11,639   7,508
Net income                             $12,162 $7,207  $22,720 $15,683
                                                                 
Net Income Per Share Amounts:                                     
Basic net income per share             $0.49   $0.30   $0.91   $0.65
Diluted net income per share           $0.49   $0.30   $0.91   $0.65
Dividends declared per share           $0.16   $0.12   $0.30   $0.22



Sandy Spring Bancorp, Inc. and Subsidiaries
HISTORICAL TRENDS - QUARTERLY FINANCIAL DATA - UNAUDITED
                                                                
              2013                  2012
(Dollars in
thousands,     Q2         Q1         Q4         Q3         Q2         Q1
except per
share data)
Profitability
for the                                                          
quarter:
Tax-equivalent
interest       $37,091  $37,590  $37,536  $38,819  $36,898  $35,991
income
Interest       4,847     4,953     5,282     5,710      5,749      5,910
expense
Tax-equivalent
net interest   32,244    32,637    32,254    33,109     31,149     30,081
income
Tax-equivalent 1,312     1,311     1,334     1,324      1,340      1,376
adjustment
Provision for
loan and lease (2,876)   78        1,168     232        1,585      664
losses
Non-interest   12,215    12,419    12,247    12,242     11,493     10,974
income
Non-interest   27,508    27,823    27,219    27,167     28,858     26,683
expenses
Income before  18,515    15,844    14,780    16,628     10,859     12,332
income taxes
Income tax     6,353     5,286     4,899     5,638      3,652      3,856
expense
Net income    $12,162  $10,558  $9,881   $10,990  $7,207   $8,476
Financial                                                        
performance:
Pre-tax
pre-provision  $15,639  $15,922  $15,740  $16,996  $14,642  $13,370
pre-merger
expense income
Return on      1.23%      1.08%      1.01%      1.13%      0.78%      0.94%
average assets
Return on
average common 9.98%      8.85%      8.14%      9.22%      6.34%      7.60%
equity
Net interest   3.51%      3.59%      3.53%      3.67%      3.62%      3.56%
margin
Efficiency
ratio - GAAP   63.75%     63.60%     63.06%     61.70%     69.87%     67.25%
basis (1)
Efficiency
ratio -        60.92%     60.80%     60.54%     58.91%     61.54%     62.97%
Non-GAAP basis
(1)
Per share                                                        
data:
Basic net
income per     $0.49    $0.42    $0.40    $0.44    $0.30    $0.35
share
Diluted net
income per     $0.49    $0.42    $0.40    $0.44    $0.30    $0.35
share
Average fully  25,009,092 25,002,612 24,971,249 24,949,205 24,423,236 24,180,501
diluted shares
Dividends
declared per   $0.16    $0.14    $0.14    $0.12    $0.12    $0.10
common share
Non-interest                                                     
income:
Securities     $62      $56      $--      $296     $90      $73
gains
Net OTTI
recognized in  --        --        (14)      (23)      (8)       (64)
earnings
Service
charges on     2,150     2,069     2,197     2,230      2,283      2,200
deposit
accounts
Mortgage
banking        1,237     1,527     1,738     1,981      1,288      1,025
activities
Wealth
management     4,532     4,042     4,000     3,858      4,034      4,057
income
Insurance
agency         1,036     1,349     1,334     1,020      934        1,202
commissions
Income from
bank owned     623       612       662       660        660        634
life insurance
Visa check     1,079     957       1,043     984        962        898
fees
Other income   1,496     1,807     1,287     1,236      1,250      949
Total
non-interest   $12,215  $12,419  $12,247  $12,242  $11,493  $10,974
income
Non-interest                                                     
expense:
Salaries and
employee       $16,163  $16,346  $15,405  $15,476  $15,927  $15,701
benefits
Occupancy
expense of     2,996     3,182     3,115     3,106     2,943     2,846
premises
Equipment      1,227     1,249     1,189     1,237     1,255     1,190
expenses
Marketing      755       515       827       764       565       495
Outside data   1,114     1,152     836       1,076     1,828     1,279
services
FDIC insurance 581       596       601       667       653       652
Amortization
of intangible  461       461       478       476       466       461
assets
Professional   1,332      1,250      1,584      1,282      2,156      1,287
fees
Other real
estate owned   (281)      37         316        174        351        64
expenses
Other expenses 3,160      3,035      2,868      2,909      2,714      2,708
Total
non-interest   $27,508  $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         Q2          Q1          Q4          Q3          Q2          Q1
thousands)
Balance sheets at                                                          
quarter end:
Residential         $565,282  $538,346  $523,364  $499,806  $472,426  $465,204
mortgage loans
Residential         116,736     122,698     120,314     128,606     130,791     122,841
construction loans
Commercial ADC      163,309     150,599     151,933     133,007     151,620     149,814
loans
Commercial investor 497,365     487,802     456,888     447,536     443,237     392,626
real estate loans
Commercial owner
occupied real       563,258     565,820     571,510     579,711     579,812     525,022
estate loans
Commercial business 334,979     344,489     346,708     322,087     334,040     253,827
loans
Leasing             1,415       1,974       3,421       4,233       5,618       5,843
Consumer loans      363,114     353,341     356,990     353,999     357,534     356,215
Total loans and     2,605,458   2,565,069   2,531,128   2,468,985   2,475,078   2,271,392
leases
Allowance for loan  (39,015)    (41,246)    (42,957)    (42,618)    (45,265)    (45,061)
and lease losses
Investment          1,102,209   1,008,693   1,075,032   1,074,918   1,006,743   1,067,462
securities
Interest-earning    3,802,682   3,660,809   3,669,175   3,614,310   3,584,480   3,416,136
assets
Total assets        4,072,617   3,932,026   3,955,206   3,887,427   3,855,177   3,668,273
Noninterest-bearing 877,891     832,679     847,415     818,674     763,566     685,770
demand deposits
Total deposits      2,926,650   2,919,208   2,913,034   2,880,262   2,852,055   2,681,075
Customer repurchase 54,731      50,302      51,929      58,306      64,779      73,130
agreements
Total
interest-bearing    2,678,490   2,576,831   2,592,606   2,560,040   2,593,501   2,508,756
liabilities
Total stockholders' 485,643     488,947     483,512     481,810     471,464     451,917
equity
Quarterly average                                                          
balance sheets:
Residential         $579,899  $575,889  $542,095  $510,475  $488,644  $474,149
mortgage loans
Residential         119,197    120,283    125,640    133,236    125,582    116,630
construction loans
Commercial ADC      160,483    148,749    137,679    142,870    151,374    159,769
loans
Commercial investor 485,630    474,062    453,074    445,012    410,258    377,072
real estate loans
Commercial owner
occupied real       561,249    567,723    577,693    580,994    539,590    518,763
estate loans
Commercial business 337,843    347,569    322,501    332,364    284,271    258,099
loans
Leasing             1,644      2,510      3,773      4,858      5,528      6,325
Consumer loans      360,842    357,366    356,452    357,135    359,008    358,783
Total loans and     2,606,787  2,594,151  2,518,907  2,506,945  2,364,255  2,269,590
leases
Investment          1,047,726   1,051,769   1,072,278   1,038,586   1,052,502   1,086,295
securities
Interest-earning    3,692,215   3,677,444   3,639,605   3,599,715   3,453,590   3,389,843
assets
Total assets        3,959,907   3,946,578   3,908,479   3,863,951   3,708,622   3,637,674
Noninterest-bearing 838,502     797,926     824,188     774,215     699,638     641,477
demand deposits
Total deposits      2,892,704   2,860,451   2,891,120   2,857,523   2,714,980   2,642,634
Customer repurchase 55,941     52,622     60,941     62,693     66,674     65,195
agreements
Total
interest-bearing    2,599,704   2,631,198   2,571,937   2,587,815   2,526,541   2,523,394
liabilities
Total stockholders' 489,014     483,664     482,621     474,231     457,338     448,406
equity
Financial Measures                                                         
Average equity to   12.35%      12.26%      12.35%      12.27%      12.33%      12.33%
average assets
Investment
securities to       28.99%      27.55%      29.30%      29.74%      28.09%      31.25%
earning assets
Loans to earnings   68.52%      70.07%      68.98%      68.31%      69.05%      66.49%
assets
Loans to assets     63.98%      65.24%      63.99%      63.51%      64.20%      61.92%
Loans to deposits   89.03%      87.87%      86.89%      85.72%      86.78%      84.72%
Capital measures:                                                          
Tier 1 leverage    11.28%      11.07%      10.98%      10.99%      11.21%      11.05%
Tier 1 capital to
risk-weighted       14.30%      14.23%      14.15%      14.31%      14.12%      14.89%
assets
Total regulatory
capital to          15.55%      15.48%      15.40%      15.56%      15.36%      16.14%
risk-weighted
assets
Book value per      $19.45    $19.59    $19.41    $19.35    $18.94    $18.72
share
Outstanding shares  24,967,558 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       June 30, March 31, December  September  June 30, March 31,
thousands)                            31,       30,
Non-Performing                                                  
Assets:
Loans and leases                                                
90 days past due:
Commercial        $15     $--     $24     $44      $70     $40
business
Commercial real                                                 
estate:
Commercial AD&C   --       --       --       --        342      --
Commercial
investor real     --       --       --       --        --       --
estate
Commercial owner
occupied real     --       --       209      --        --       --
estate
Leasing           --       --       --       127       96       --
Consumer          --       54       14       18        5        89
Residential real                                                
estate:
Residential       --       --       --       116       91       167
mortgage
Residential       --       --       --       --        --       --
construction
Total loans and
leases 90 days    15       54       247      305       604      296
past due
Non-accrual loans                                               
and leases:
Commercial        4,483    4,012    4,611    4,919     4,583    6,542
business
Commercial real                                                 
estate:
Commercial AD&C   5,885    5,826    6,332    8,957     13,055   14,303
Commercial
investor real     11,741   12,353   11,843   12,345    13,327   13,893
estate
Commercial owner
occupied real     5,413    5,346    13,681   13,742    15,146   16,295
estate
Leasing           --       --       865      834       872      858
Consumer          2,305    2,388    2,410    1,607     1,651    1,700
Residential real                                                
estate:
Residential       5,581    5,393    4,681    3,644     2,600    4,818
mortgage
Residential       2,558    3,258    3,125    3,236     4,333    4,929
construction
Total non-accrual 37,966   38,576   47,548   49,284    55,567   63,338
loans and lease
Total
restructured      8,213    10,839   10,110   9,277     8,285    8,547
loans - accruing
Total
non-performing    46,194   49,469   57,905   58,866    64,456   72,181
loans and leases
Other assets and
real estate owned 4,831    5,250    5,926    9,291     9,553    4,834
(OREO)
Total
non-performing    $51,025 $54,719 $63,831 $68,157  $74,009 $77,015
assets
                                                               
                 For the quarter ended,
                 June 30,  March 31, December September June     March
                                      31,      30,       30,      31,
(Dollars in       2013      2013      2012      2012       2012      2012
thousands)
Analysis of Non-accrual                                          
Loan and Lease Activity:
Balance at
beginning of      $38,576 $47,548 $49,284 $55,567  $63,338 $71,680
period
Non-accrual
balances          (1,426)  (92)     (400)    (232)     (2,131)  --
transferred to
OREO
Non-accrual
balances          (668)    (2,175)  (979)    (3,697)   (1,663)  (4,965)
charged-off
Net payments or   (3,560)  (11,768) (3,852)  (6,342)   (4,149)  (5,061)
draws
Loans placed on   5,044    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 $37,966 $38,576 $47,548 $49,284  $55,567 $63,338
period
                                                               
Analysis of
Allowance for                                                   
Loan Losses:
Balance at
beginning of      $41,246 $42,957 $42,618 $45,265  $45,061 $49,426
period
Provision for
loan and lease    (2,876)  78       1,168    232       1,585    664
losses
Less loans
charged-off, net                                                
of recoveries:
Commercial        (32)     1,744    (76)     (225)     (185)    (39)
business
Commercial real                                                 
estate:
Commercial AD&C   (1,444)  (1,020)  (248)    1,983     (59)     1,076
Commercial
investor real     123      31       110      123       140      3,219
estate
Commercial owner
occupied real     100      81       --       653       484      --
estate
Leasing           (4)      --       --       (17)      (3)      5
Consumer          490      508      384      111       228      348
Residential real                                                
estate:
Residential       22       447      508      253       713      420
mortgage
Residential       100      (2)      151      (2)       63       --
construction
Net charge-offs   (645)    1,789    829      2,879     1,381    5,029
Balance at end of $39,015 $41,246 $42,957 $42,618  $45,265 $45,061
period
                                                               
Asset Quality                                                   
Ratios:
Non-performing
loans to total    1.77%     1.93%     2.29%     2.38%      2.60%     3.18%
loans
Non-performing
assets to total   1.25%     1.39%     1.61%     1.75%      1.92%     2.10%
assets
Allowance for
loan losses to    1.50%     1.61%     1.70%     1.73%      1.83%     1.98%
loans
Allowance for
loan losses to    84.46%    83.38%    74.18%    72.40%     70.23%    62.43%
non-performing
loans
Net charge-offs
in quarter to     (0.10)%   0.28%     0.13%     0.46%      0.23%     0.89%
average loans



Sandy Spring Bancorp, Inc. and Subsidiaries
CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES - UNAUDITED
                                                                      
                   Six Months Ended June 30,
                   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         $577,905  $10,686 3.70%       $481,396  $10,741 4.49%
mortgage loans (2)
Residential         119,737     2,036     3.43        121,106     2,291     3.80
construction loans
Commercial ADC      154,648     4,102     5.35        155,571     3,890     5.03
loans
Commercial investor 479,878     12,319    5.18        393,665     10,764    5.50
real estate loans
Commercial owner
occupied real       564,468     15,103    5.53        529,176     14,784    5.68
estate loans
Commercial business 342,679     9,042     5.18        271,185     6,816     4.93
loans
Leasing             2,075       68        6.53        5,927       193       6.53
Consumer loans      359,114     6,164     3.49        358,896     6,327     3.57
Total loans and     2,600,504   59,520    4.64        2,316,922   55,806    4.85
leases (3)
Taxable securities  750,167     8,594     2.29        791,303     10,253    2.59
Tax-exempt          299,569     6,524     4.36        278,095     6,784     4.88
securities (4)
Interest-bearing    34,156      43        0.25        34,410      45        0.26
deposits with banks
Federal funds sold  475         --       0.22        985         1        0.16
Total
interest-earning    3,684,871   74,681    4.08        3,421,715   72,889    4.27
assets
                                                                      
Less:allowance for
loan and lease      (42,650)                        (48,439)             
losses
Cash and due from   46,242                          45,470               
banks
Premises and        47,832                          48,820               
equipment, net
Other assets        216,984                         205,582              
Total assets        $3,953,279                     $3,673,148          
                                                                      
Liabilities and
Stockholders'                                                          
Equity
Interest-bearing    $433,200  183      0.09%       $373,741  171      0.09%
demand deposits
Regular savings     237,467     106      0.09        206,721     104       0.10
deposits
Money market        883,765     789       0.18        857,020     983       0.23
savings deposits
Time deposits       503,908     1,773     0.71        570,768     2,626     0.93
Total
interest-bearing    2,058,340   2,851     0.28        2,008,250   3,884     0.39
deposits
Other borrowings    61,132      87        0.29        76,403      112       0.29
Advances from FHLB  460,892     6,412     2.81        405,315     7,173     3.56
Subordinated        35,000      450       2.57        35,000      490       2.80
debentures
Total
interest-bearing    2,615,364   9,800     0.76        2,524,968   11,659    0.93
liabilities
                                                                      
Noninterest-bearing 818,326                         670,557              
demand deposits
Other liabilities   33,235                          24,752               
Stockholders'       486,354                         452,871              
equity
Total liabilities
and stockholders'   $3,953,279                     $3,673,148          
equity
                                                                      
Net interest income            $64,881 3.32%                  $61,230 3.34%
and spread
Less:
tax-equivalent                 2,623                          2,716    
adjustment
Net interest income            $62,258                       $58,514 
                                                                      
Interest
income/earning                          4.08%                           4.27%
assets
Interest
expense/earning                         0.53                            0.68
assets
Net interest margin                     3.55%                           3.59%
                                                                      
(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 $2.6 million and $2.7
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.



Sandy Spring Bancorp, Inc. and Subsidiaries
CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES - UNAUDITED
                                                                       
                   Three Months Ended June 30,
                   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         $579,899   $5,310  3.68%       $488,644  $5,381  4.43%
mortgage loans (2)
Residential         119,197      1,032     3.47        125,582     1,190     3.81
construction loans
Commercial ADC      160,483      2,106     5.26        151,374     1,922     5.11
loans
Commercial investor 485,630      6,184     5.11        410,258     5,616     5.51
real estate loans
Commercial owner
occupied real       561,249      7,302     5.34        539,590     7,524     5.68
estate loans
Commercial business 337,843      4,456     5.15        284,271     3,665     5.04
loans
Leasing             1,644        30        7.22        5,528       90        6.53
Consumer loans      360,842      3,101     3.47        359,008     3,140     3.54
Total loans and     2,606,787    29,521    4.57        2,364,255   28,528    4.86
leases (3)
Taxable securities  746,266      4,289     2.30        772,668     4,980     2.58
Tax-exempt          301,460      3,257     4.32        279,834     3,365     4.81
securities (4)
Interest-bearing    37,227       24        0.25        35,949      24        0.27
deposits with banks
Federal funds sold  475          --       0.22        884         1        0.18
Total
interest-earning    3,692,215    37,091    4.03        3,453,590   36,898    4.29
assets
                                                                       
Less:allowance for
loan and lease      (41,605)                         (47,312)             
losses
Cash and due from   45,603                           45,883               
banks
Premises and        47,501                           49,085               
equipment, net
Other assets        216,193                          207,376              
Total assets        $3,959,907                     $3,708,622          
                                                                       
Liabilities and
Stockholders'                                                           
Equity
Interest-bearing    $442,808   91       0.08%       $384,750  84       0.09%
demand deposits
Regular savings     240,410      58       0.10        212,839     58       0.11
deposits
Money market        875,282      378       0.17        854,920     471       0.22
savings deposits
Time deposits       495,702      869       0.70        562,833     1,258     0.90
Total
interest-bearing    2,054,202    1,396     0.27        2,015,342   1,871     0.37
deposits
Other borrowings    56,711       38        0.27        70,928      51        0.29
Advances from FHLB  453,791      3,189     2.82        405,271     3,586     3.56
Subordinated        35,000       224       2.56        35,000      241       2.75
debentures
Total
interest-bearing    2,599,704    4,847     0.75        2,526,541   5,749     0.91
liabilities
                                                                       
Noninterest-bearing 838,502                          699,638              
demand deposits
Other liabilities   32,686                           25,105               
Stockholders'       489,014                          457,338              
equity
Total liabilities
and stockholders'   $3,959,906                     $3,708,622          
equity
                                                                       
Net interest income             $32,244 3.28%                  $31,149 3.38%
and spread
Less:
tax-equivalent                  1,312                          1,340    
adjustment
Net interest income             $30,932                       $29,809 
                                                                       
Interest
income/earning                           4.03%                           4.29%
assets
Interest
expense/earning                          0.52                            0.67
assets
Net interest margin                      3.51%                           3.62%
                                                                       
(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 $1.3 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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