Sandy Spring Bancorp (SASR) investor relations material

Executive summary

• Acquisition of Sandy Spring Bancorp closed on April 1, a quarter ahead of schedule, expanding the franchise and accelerating integration plans.

• Economic outlook became more uncertain with increased market volatility and abrupt policy changes, but the company remains confident in its market position.

• The franchise now covers affluent, resilient markets in the Mid-Atlantic, with a focus on Maryland, Virginia, and North Carolina.

Financial highlights

• Net income available to common shareholders was $46.9 million; adjusted operating earnings were $51.6 million.

• Diluted EPS was $0.52; adjusted operating EPS was $0.57.

• Adjusted operating return on tangible common equity was 13.2%; adjusted operating return on assets was 0.90%.

• Net interest margin expanded by 12 basis points to 3.45% quarter-over-quarter.

• Non-interest income decreased by $6 million, mainly due to lower swap fees and investment income.

• Non-interest expense increased by $4.5 million, driven by higher salaries, benefits, and technology costs.

Outlook and guidance

• Full-year 2025 net interest income projected between $1.15 billion and $1.25 billion.

• Net interest margin expected between 3.75% and 4%, assuming three Fed rate cuts in 2025.

• Year-end loan balances projected at $28–$29 billion; deposit balances at $31–$32 billion.

• Allowance for credit losses to loans expected between 1.2% and 1.3%; net charge-off ratio between 15–25 basis points.

• Adjusted operating non-interest income expected at $165–$185 million; non-interest expenses at $665–$685 million.