Sandy Spring Bancorp : 2nd Quarter 2022 Investor Presentation

2nd Quarter 2022 Investor Presentation

August 5, 2022

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Forward Looking Statements

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

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Sandy Spring Bancorp, Inc.

Highlights (6/30/22)

$13.3 billion in total assets

$10.8 billion in total loans

$1.82 billion market capitalization (1) $11.0 billion in deposits

• In 2022, ranked #5of America's Best Banksby Forbes magazine and ranked #1bank in Maryland by Forbes magazine (2)

• In 2022, ranked #5in S&P Global Market Intelligence's annual rankings for top performing banks and credit unions (3)

• Named one of The Washington Post's 2022 Top Workplacesand one of the Best Banks to Work For in 2021 by American Banker. In 2022, certified as a Great Place to Workand named a USA Top Workplacein Energage's inaugural USA Top Workplaces program in 2021

• Significant organic and acquisition growth opportunities throughout our markets

• Strong asset quality

• Conservative capital and liquidity management

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

1)	Market data at market close on July 27, 2022
2)	Per Forbes "Best Banks in Each State 2021 List"	3
3)	Per S&P Global Market Intelligence "Top 50 Public Banks 2021"

Quarterly Highlights

	• Net income was $54.8 million ($1.21 per diluted common share) compared to net income of $57.3 million ($1.19 per diluted
	common share) for the prior year quarter, and $43.9 million ($0.96 per diluted common share) for the first quarter of 2022
Profitability	• Core earnings(1)(2) were $44.2 million ($0.98 per diluted common share) compared to core earnings of $58.4 million ($1.23 per
diluted common share) for the prior year quarter, and $45.1 million ($0.99 per diluted common share) for the first quarter of 2022
	• GAAP efficiency ratio was 46.03% compared to 46.89% for the prior year quarter, and 50.92% for the first quarter of 2022. The
	non-GAAP efficiency ratio(1)(2) was 49.79% compared to 45.36% for the prior year quarter, and 49.34% for the first quarter of
	2022
	• Net interest margin of 3.49%, compared to 3.63% for the same quarter of 2021, and 3.49% for the first quarter of 2022
	• Pre-taxpre-provision net income(1) was $76.2 million compared to $71.3 million for the prior year quarter
Income Statement	• Provision for credit losses was a $3.0 million charge compared to the prior year quarter's credit to the provision of $4.2 million
	• Non-interest income increased by 34% or $9.0 million compared to the prior year quarter
	• Non-interest expense increased $2.0 million or 3% compared to the prior year quarter
	• Total assets were $13.3 billion, a 3% increase compared to $12.9 billion at June 30, 2021. Excluding PPP balances, total assets
	grew 10% year-over-year
Balance Sheet	• Total loans, excluding PPP loans, increased 17% to $10.8 billion compared to $9.2 billion at June 30, 2021. Excluding PPP loans,
	total commercial loans grew by $1.3 billion or 17% during the previous twelve months
	• Year-over-year deposits grew 1%, driven by 3% growth in noninterest-bearing deposits

Asset Quality

Capital

• Non-performingloans to total loans was 0.40% compared to 0.93% at June 30, 2021, and 0.46% at March 31, 2022. Non- performing loans totaled $43.5 million, compared to $94.3 million at June 30, 2021, and $46.3 million at March 31, 2022
• Risk-basedcapital ratio of 16.07%, a common equity tier 1 risk-based capital ratio of 11.58%, a tier 1 risk-based capital ratio of 11.58%, and a tier 1 leverage ratio of 9.53%

Source: Company documents

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

2) Excludes merger, acquisition and disposal expense, amortization of intangible assets, loss on FHLB redemption from non-interest expense, investment securities gains and gain on disposal of assets from non-interest income

Operational Overview

• A top commercial bank franchise in the Greater Washington, DC metro area Strong Core Franchise • Well-positioned for solid organic growth

	• Comprehensive product offering with non-interest income / total revenue of 21.2% (1)
	• Robust commercial loan production for three consecutive quarters
Financial Performance	• Core return on average assets of 1.41%(1)(2)(3)
• Disciplined growth and expense management contributes to a strong 49.57% efficiency ratio (1)(2)
	• Stable net interest margin of 3.49% (1)

Robust Capital and Liquidity

Prudent Risk

Management and

Credit Culture

Experienced

Management

• Strong current capital position with 11.63% average equity to average asset ratio and 8.45% tangible common equity
  ratio (1)(2)
• Stable core deposit funded portfolio comprised of core customer relationships with 52% checking accounts (1)
• Excellent risk management culture with robust governance processes and experienced credit personnel
• Consistently excellent asset quality metrics
• Diversified loan portfolio with 4.09% total yield (1)
• Experienced management team with ~200 years of combined banking experience
• Deep in-market relationships drive client-focused business model
• Experienced acquirer with a record of successful integrations

Source: S&P Global Market Intelligence and Company documents
1)	YTD as of June 30 2022	5
2)	Non-GAAP financial measure; see reconciliation to most directly comparable GAAP measure in "Appendix - Reconciliation of non-GAAP Financial Measures"
3)	Excludes merger, acquisition and disposal expense, amortization of intangible assets, loss on FHLB redemption from non-interest expense, investment securities gains and gain on disposal of assets from non-interest income