Sandy Spring Bancorp (SASR) 8-K Sandy Spring Bancorp Reports Net Income of $11.2 Million for the First Quarter

Exhibit 99.1

    News release

FOR IMMEDIATE RELEASE

SANDY SPRING BANCORP REPORTS NET INCOME OF $11.2 MILLION FOR THE FIRST QUARTER

OLNEY, MARYLAND, April 16, 2015 — Sandy Spring Bancorp, Inc., (Nasdaq-SASR) the parent company of Sandy Spring Bank, today reported net income for the first quarter of 2015 of $11.2 million ($0.45 per diluted share) compared to net income of $10.9 million ($0.43 per diluted share) for the first quarter of 2014 and net income of $9.1 million ($0.36 per diluted share) for the fourth quarter of 2014.

“We are off to a solid start to the year, as higher net interest income from a growing loan portfolio, together with growth in income from wealth management and mortgage banking drove first quarter operating results,” said Daniel J. Schrider, President and Chief Executive Officer.

“Our consistent performance has enabled us to deliver increased shareholder value through increases to our dividends and timely repurchases of shares during the last two quarters,” said Schrider.

First Quarter Highlights:

· Total loans increased 12% compared to the first quarter of 2014 and 1% compared to the fourth quarter of 2014. Growth over the prior year was 10% or better in each of the three major portfolio segments.

· Combined noninterest-bearing and interest-bearing transactionaccount balances increased 13% to $1.5 billion at March 31, 2015 as compared to $1.4 billion at March 31, 2014.

· The provision for loan and lease losses for the first quarter of 2015 was a charge of $0.6 million compared to a credit of $1.0 million for the first quarter of 2014 and a charge of $0.9 million for the fourth quarter of 2014.

· The net interest margin was 3.44% for the first quarter of 2015, compared to 3.47% for the first quarter of 2014 and 3.44% for the fourth quarter of 2014.

· Non-interest income increased 17% for the quarter compared to the prior year quarter primarily due to increases in income from wealth management and mortgage banking.

· During the first quarter of 2015, the Company repurchased 351,369 shares at an average price of $25.72 per share as part of its existing share repurchase program. Also, on January 29 the Board increased the Company’s quarterly dividend to $0.22 per share, up from $0.20 per share in the fourth quarter of 2014.

Review of Balance Sheet and Credit Quality

Total assets grew 6% to $4.4 billion at March 31, 2015 compared to $4.2 billion at March 31, 2014. This growth was driven by a 12% increase in the loan portfolio as total loans and leases ended the period at $3.2 billion.

At March 31, 2015, combined noninterest-bearing and interest-bearing checking account balances, an important performance driver of multiple-product banking relationships with clients, increased 13% compared to balances at March 31, 2014. Total deposits and certain other short-term borrowings that comprise the funding sources derived from customers, increased 6% compared to March 31, 2014.

Tangible common equity totaled $435 million at March 31, 2015 compared to $424 million at March 31, 2014. The ratio of tangible common equity to tangible assets decreased to 10.08% at March 31, 2015 from 10.38% at March 31, 2014 due primarily to the growth in assets. Dividends per common share were $0.22 per share for the quarter compared to $0.18 per common share for the first quarter of 2014, a 22% increase. At March 31, 2015, the Company had a total risk-based capital ratio of 15.12%, a common equity tier 1 risk-based capital ratio of 14.01%, a tier 1 risk-based capital ratio of 14.01% and a tier 1 leverage ratio of 11.00%.

Non-performing loans totaled $36.0 million at March 31, 2015 compared to $38.7 million at March 31, 2014 and $34.0 million at December 31, 2014. The level of non-performing loans to total loans decreased to 1.14% at March 31, 2015 compared to 1.37% at March 31, 2014 due to growth in the overall loan portfolio. The increase in non-performing loans at March 31, 2015 compared to December 31, 2014 was driven primarily by one commercial investor real estate loan that was moved to non-performing status during the quarter. This was somewhat offset by recoveries and loan payoffs.

Loan charge-offs, net of recoveries, totaled $0.9 million for the first quarter of 2015 compared to net loan recoveries of $0.2 million for the first quarter of 2014 and net loan charge-offs of $0.6 million for the fourth quarter of 2014. The allowance for loan and lease losses represented 1.18% of outstanding loans and leases and 104% of non-performing loans at December 31, 2015 compared to 1.34% of outstanding loans and leases and 98% of non-performing loans at March 31, 2014. 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 2015 increased 6% compared to the first quarter of 2014. The net interest margin was 3.44% for the first quarter of 2015 compared to 3.47% for the first quarter of 2014.

The provision for loan and lease losses was a charge of $0.6 million for the first quarter of 2015 compared to a credit of $1.0 million for the first quarter of 2014 and a charge of $0.9 million for the fourth quarter of 2014. The current quarter’s charge reflects the growth in the loan portfolio over the prior year quarter together with the increase in non-performing loans and loan charge-offs during the first quarter.

Non-interest income increased 17% to $13.2 million for the first quarter of 2015 compared to $11.2 million for the first quarter of 2014. The increase in non-interest income for the quarter compared to the prior year quarter was due primarily to increases in income from wealth management due to growth in assets under management and mortgage banking due primarily to higher mortgage origination volumes.

Non-interest expenses increased 6% to $29.2 million for the first quarter of 2015 compared to $27.5 million in the first quarter of 2014. The current quarter included increases in salaries and benefits and other non-interest expenses that were somewhat offset by a decline in intangibles amortization. The non-GAAP efficiency ratio was 60.53% for the first quarter of 2015 compared to 61.60% for the first quarter of 2014.

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 1-866-235-9910. 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) April 30, 2015. A replay of the teleconference will be available through the same time period by calling 1-877-344-7529 under conference call number 10063098.

About Sandy Spring Bancorp, Inc.

With $4.4 billion in assets, Sandy Spring Bancorp, Inc. is the holding company for Sandy Spring Bank and its principal subsidiaries, Sandy Spring Insurance Corporation and West Financial Services, Inc. Sandy Spring Bank traces its origin to 1868, making it among the oldest banking institutions in the region. 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 offers a broad range of commercial banking, retail banking and trust services through 44 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.

For additional information or questions, please 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

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, 2014, 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 per share data)	2015			2014			Change
Results of Operations:
Net interest income	$	33,373		$	31,592			6	%
Provision (credit) for loan and lease losses		597			(982	)		(161	)
Non-interest income		13,159			11,249			17
Non-interest expenses		29,244			27,549			6
Income before income taxes		16,691			16,274			3
Net income		11,225			10,928			3
Pre-tax pre-provision income	$	17,488		$	15,292			14
Return on average assets		1.04	%		1.08	%
Return on average common equity		8.73	%		8.80	%
Net interest margin		3.44	%		3.47	%
Efficiency ratio - GAAP basis   (1)		62.85	%		64.31	%
Efficiency ratio - Non-GAAP basis   (1)		60.53	%		61.60	%
Per share data:
Basic net income	$	0.45		$	0.44			2	%
Diluted net income	$	0.45		$	0.43			5
Average fully diluted shares		25,048,576			25,124,206			-
Dividends declared per share	$	0.22		$	0.18			22
Book value per share		21.10			20.38			4
Tangible book value per share		17.59			16.93			4
Outstanding shares		24,733,868			25,043,482			(1	)
Financial Condition at period-end:
Investment securities	$	912,565		$	997,584			(9	)%
Loans and leases		3,164,706			2,832,813			12
Interest-earning assets		4,125,549			3,891,223			6
Assets		4,401,380			4,168,998			6
Deposits		3,109,892			2,959,195			5
Interest-bearing liabilities		2,818,966			2,748,064			3
Stockholders' equity		521,768			510,386			2
Capital ratios:
Tier 1 leverage   (4)		11.00	%		11.43	%
Tier 1 capital to risk-weighted assets   (4)		14.01	%		14.64	%
Total regulatory capital to risk-weighted assets   (4)		15.12	%		15.85	%
Common equity tier 1 capital to risk-weighted assets   (4)		14.01	%		n.a.
Tangible common equity to tangible assets   (2)		10.08	%		10.38	%
Average equity to average assets		11.92	%		12.27	%
Credit quality ratios:
Allowance for loan and lease losses to loans and leases		1.18	%		1.34	%
Non-performing loans to total loans		1.14	%		1.37	%
Non-performing assets to total assets		0.89	%		0.97	%
Allowance for loan and lease losses to non-performing loans		104.05	%		98.27	%
Annualized net charge-offs to average loans and leases    (3)		0.12	%		(0.04	)%

(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 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.

(4) Estimated ratio at March 31, 2015

Sandy Spring Bancorp, Inc. and Subsidiaries
RECONCILIATION TABLE - UNAUDITED
	Three Months Ended
	March 31,
(Dollars in thousands)	2015			2014
Pre-tax pre-provision income:
Net income	$	11,225		$	10,928
Plus non-GAAP adjustment:
Litigation expenses		200			-
Income taxes		5,466			5,346
Provision (credit) for loan and lease losses		597			(982	)
Pre-tax pre-provision income	$	17,488		$	15,292
Efficiency ratio - GAAP basis:
Non-interest expenses	$	29,244		$	27,549
Net interest income plus non-interest income	$	46,532		$	42,841
Efficiency ratio - GAAP basis		62.85	%		64.31	%
Efficiency ratio - Non-GAAP basis:
Non-interest expenses	$	29,244		$	27,549
Less non-GAAP adjustment:
Amortization of intangible assets		107			370
Litigation expenses		200			-
Non-interest expenses -  as adjusted	$	28,937		$	27,179
Net interest income plus non-interest income	$	46,532		$	42,841
Plus non-GAAP adjustment:
Tax-equivalent income		1,271			1,282
Less non-GAAP adjustments:
Securities gains (losses)		-			-
Net interest income plus non-interest income - as adjusted	$	47,803		$	44,123
Efficiency ratio - Non-GAAP basis		60.53	%		61.60	%
Tangible common equity ratio:
Total stockholders' equity	$	521,768		$	510,386
Accumulated other comprehensive income		(2,146	)		(1,350	)
Goodwill		(84,171	)		(84,171	)
Other intangible assets, net		(403	)		(960	)
Tangible common equity	$	435,048		$	423,905
Total assets	$	4,401,380		$	4,168,998
Goodwill		(84,171	)		(84,171	)
Other intangible assets, net		(403	)		(960	)
Tangible assets	$	4,316,806		$	4,083,867
Tangible common equity ratio		10.08	%		10.38	%
Outstanding common shares		24,733,868			25,043,482
Tangible book value per common share	$	17.59		$	16.93

Sandy Spring Bancorp, Inc. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF CONDITION  - UNAUDITED
	March 31,			December 31,			March 31,
(Dollars in thousands)	2015			2014			2014
Assets
Cash and due from banks	$	46,771		$	52,804		$	58,448
Federal funds sold		473			473			474
Interest-bearing deposits with banks		33,906			42,940			57,273
Cash and cash equivalents		81,150			96,217			116,195
Residential mortgage loans held for sale (at fair value)		13,899			10,512			3,079
Investments available-for-sale (at fair value)		657,709			672,209			736,270
Investments held-to-maturity -- fair value of $221,687, $222,260 and $220,693 at March 31, 2015, December 31, 2014 and March 31, 2014, respectively		217,557			219,973			223,747
Other equity securities		37,299			41,437			37,567
Total loans and leases		3,164,706			3,127,392			2,832,813
Less: allowance for loan and lease losses		(37,475	)		(37,802	)		(38,026	)
Net loans and leases		3,127,231			3,089,590			2,794,787
Premises and equipment, net		51,299			49,402			45,644
Other real estate owned		3,227			3,195			1,619
Accrued interest receivable		12,505			12,634			12,288
Goodwill		84,171			84,171			84,171
Other intangible assets, net		403			510			960
Other assets		114,930			117,282			112,671
Total assets	$	4,401,380		$	4,397,132		$	4,168,998
Liabilities
Noninterest-bearing deposits	$	1,017,566		$	993,737		$	882,169
Interest-bearing deposits		2,092,326			2,072,772			2,077,026
Total deposits		3,109,892			3,066,509			2,959,195
Securities sold under retail repurchase agreements and federal funds purchased		101,640			74,432			67,038
Advances from FHLB		590,000			655,000			569,000
Subordinated debentures		35,000			35,000			35,000
Accrued interest payable and other liabilities		43,080			44,440			28,379
Total liabilities		3,879,612			3,875,381			3,658,612
Stockholders' Equity
Common stock -- par value $1.00; shares authorized 50,000,000; shares issued and outstanding 24,733,868, 25,044,877 and 25,043,482 at March 31, 2015, December 31, 2014 and March 31, 2014, respectively		24,734			25,045			25,043
Additional paid in capital		186,342			194,647			193,708
Retained earnings		308,546			302,882			290,285
Accumulated other comprehensive income (loss)		2,146			(823	)		1,350
Total stockholders' equity		521,768			521,751			510,386
Total liabilities and stockholders' equity	$	4,401,380		$	4,397,132		$	4,168,998

Sandy Spring Bancorp, Inc. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
	Three Months Ended
	March 31,
(Dollars in thousands, except per share data)	2015		2014
Interest Income:
Interest and fees on loans and leases	$	32,139	$	29,734
Interest on loans held for sale		76		59
Interest on deposits with banks		22		20
Interest and dividends on investment securities:
Taxable		3,577		4,116
Exempt from federal income taxes		2,258		2,321
Total interest income		38,072		36,250
Interest Expense:
Interest on deposits		1,194		1,184
Interest on retail repurchase agreements and federal funds purchased		50		38
Interest on advances from FHLB		3,236		3,218
Interest on subordinated debt		219		218
Total interest expense		4,699		4,658
Net interest income		33,373		31,592
Provision (credit) for loan and lease losses		597		(982	)
Net interest income after provision (credit) for loan and lease losses		32,776		32,574
Non-interest Income:
Investment securities gains (losses)		-		-
Service charges on deposit accounts		1,882		1,972
Mortgage banking activities		1,178		316
Wealth management income		4,916		4,466
Insurance agency commissions		1,618		1,640
Income from bank owned life insurance		713		598
Bank card fees		1,057		978
Other income		1,795		1,279
Total non-interest income		13,159		11,249
Non-interest Expenses:
Salaries and employee benefits		17,299		16,355
Occupancy expense of premises		3,489		3,472
Equipment expenses		1,373		1,256
Marketing		531		542
Outside data services		1,261		1,216
FDIC insurance		631		520
Amortization of intangible assets		107		370
Litigation expenses		200		-
Other expenses		4,353		3,818
Total non-interest expenses		29,244		27,549
Income before income taxes		16,691		16,274
Income tax expense		5,466		5,346
Net income	$	11,225	$	10,928
Net Income Per Share Amounts:
Basic net income per share	$	0.45	$	0.44
Diluted net income per share	$	0.45	$	0.43
Dividends declared per share	$	0.22	$	0.18

Sandy Spring Bancorp, Inc. and Subsidiaries
HISTORICAL TRENDS - QUARTERLY FINANCIAL DATA - UNAUDITED
	2015			2014
(Dollars in thousands, except per share data)	Q1			Q4			Q3			Q2			Q1
Profitability for the Quarter:
Tax-equivalent interest income	$	39,343		$	39,258		$	38,446		$	38,322		$	37,532
Interest expense		4,699			4,748			4,730			4,682			4,658
Tax-equivalent net interest income		34,644			34,510			33,716			33,640			32,874
Tax-equivalent adjustment		1,271			1,283			1,296			1,331			1,282
Provision for loan and lease losses		597			853			(192	)		158			(982	)
Non-interest income		13,159			11,338			12,590			11,694			11,249
Non-interest expenses		29,244			30,478			28,632			34,141			27,549
Income before income taxes		16,691			13,234			16,570			9,704			16,274
Income tax expense		5,466			4,086			5,428			2,722			5,346
Net income	$	11,225		$	9,148		$	11,142		$	6,982		$	10,928
Financial Performance:
Pre-tax pre-provision income	$	17,488		$	14,242		$	16,614		$	15,990		$	15,292
Return on average assets		1.04	%		0.85	%		1.05	%		0.67	%		1.08	%
Return on average common equity		8.73	%		6.93	%		8.54	%		5.47	%		8.80	%
Net interest margin		3.44	%		3.44	%		3.42	%		3.48	%		3.47	%
Efficiency ratio - GAAP basis (1)		62.85	%		68.39	%		63.61	%		77.59	%		64.31	%
Efficiency ratio - Non-GAAP basis (1)		60.53	%		65.89	%		61.09	%		61.30	%		61.60	%
Per Share Data:
Basic net income per share	$	0.45		$	0.37		$	0.44		$	0.28		$	0.44
Diluted net income per share	$	0.45		$	0.36		$	0.44		$	0.28		$	0.43
Average fully diluted shares		25,048,576			25,151,831			25,151,582			25,127,036			25,124,206
Dividends declared per common share	$	0.22		$	0.20		$	0.20		$	0.18		$	0.18
Non-interest Income:
Securities gains (losses)	$	-		$	(3	)	$	8		$	-		$	-
Service charges on deposit accounts		1,882			2,135			2,226			2,089			1,972
Mortgage banking activities		1,178			512			596			570			316
Wealth management income		4,916			4,905			4,974			4,741			4,466
Insurance agency commissions		1,618			985			1,410			961			1,640
Income from bank owned life insurance		713			627			611			608			598
Bank card fees		1,057			1,144			1,148			1,169			978
Other income		1,795			1,033			1,617			1,556			1,279
Total Non-interest Income	$	13,159		$	11,338		$	12,590		$	11,694		$	11,249
Non-interest Expense:
Salaries and employee benefits	$	17,299		$	16,793		$	16,765		$	16,474		$	16,355
Occupancy expense of premises		3,489			3,914			3,032			3,274			3,472
Equipment expenses		1,373			1,333			1,337			1,262			1,256
Marketing		531			838			744			802			542
Outside data services		1,261			1,284			1,231			1,216			1,216
FDIC insurance		631			615			594			573			520
Amortization of intangible assets		107			112			115			224			370
Litigation expenses		200			155			236			6,128			-
Professional fees		1,209			1,246			1,092			1,292			914
Other real estate owned expenses		10			2			40			9			-
Other expenses		3,134			4,186			3,446			2,887			2,904
Total Non-interest Expense	$	29,244		$	30,478		$	28,632		$	34,141		$	27,549

(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 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
	2015			2014
(Dollars in thousands)	Q1			Q4			Q3			Q2			Q1
Balance Sheets at Quarter End:
Residential mortgage loans	$	728,858		$	717,886		$	698,925		$	668,536		$	640,939
Residential construction loans		130,321			136,741			141,883			149,321			143,109
Commercial ADC loans		203,731			205,124			194,666			178,972			163,343
Commercial investor real estate loans		668,931			640,193			575,984			577,813			573,634
Commercial owner occupied real estate loans		618,846			611,061			584,964			581,795			582,472
Commercial business loans		385,452			390,781			368,611			357,472			348,180
Leasing		36			54			156			260			439
Consumer loans		428,531			425,552			410,723			396,775			380,697
Total loans and leases		3,164,706			3,127,392			2,975,912			2,910,944			2,832,813
Allowance for loan and lease losses		(37,475	)		(37,802	)		(37,574	)		(37,959	)		(38,026	)
Investment securities		912,565			933,619			950,869			980,530			997,584
Interest-earning assets		4,125,549			4,114,936			3,976,731			3,945,643			3,891,223
Total assets		4,401,380			4,397,132			4,248,731			4,234,342			4,168,998
Noninterest-bearing demand deposits		1,017,566			993,737			986,549			984,700			882,169
Total deposits		3,109,892			3,066,509			3,028,788			3,038,670			2,959,195
Customer repurchase agreements		101,640			74,432			71,384			72,917			67,038
Total interest-bearing liabilities		2,818,966			2,837,204			2,706,623			2,698,887			2,748,064
Total stockholders' equity		521,768			521,751			522,404			517,269			510,386
Quarterly Average Balance Sheets:
Residential mortgage loans	$	731,301		$	717,671		$	689,531		$	659,172		$	633,160
Residential construction loans		132,456			141,890			147,750			145,968			134,261
Commercial ADC loans		206,105			201,020			180,293			168,063			162,544
Commercial investor real estate loans		645,163			607,050			577,851			575,283			557,168
Commercial owner occupied real estate loans		611,722			594,634			585,014			579,953			584,155
Commercial business loans		383,111			367,872			367,203			348,597			349,734
Leasing		44			114			206			352			567
Consumer loans		425,434			417,910			404,062			390,076			377,822
Total loans and leases		3,135,336			3,048,161			2,951,910			2,867,464			2,799,411
Investment securities		925,683			942,782			965,206			991,135			1,012,701
Interest-earning assets		4,097,648			4,022,051			3,954,858			3,893,843			3,845,513
Total assets		4,372,988			4,292,237			4,220,084			4,157,559			4,105,225
Noninterest-bearing demand deposits		986,688			1,000,285			956,830			899,287			825,968
Total deposits		3,056,186			3,063,591			3,036,686			2,965,329			2,876,641
Customer repurchase agreements		90,020			78,746			73,046			68,880			62,864
Total interest-bearing liabilities		2,817,575			2,731,791			2,711,206			2,716,537			2,749,459
Total stockholders' equity		521,346			524,063			517,534			511,738			503,851
Financial Measures:
Average equity to average assets		11.92	%		12.21	%		12.26	%		12.31	%		12.27	%
Investment securities to earning assets		22.12	%		22.69	%		23.91	%		24.85	%		25.64	%
Loans to earning assets		76.71	%		76.00	%		74.83	%		73.78	%		72.80	%
Loans to assets		71.90	%		71.12	%		70.04	%		68.75	%		67.95	%
Loans to deposits		101.76	%		101.99	%		98.25	%		95.80	%		95.73	%
Capital Measures:
Tier 1 leverage  (1)		11.00	%		11.26	%		11.36	%		11.37	%		11.43	%
Tier 1 capital to risk-weighted assets  (1)		14.01	%		13.95	%		14.52	%		14.48	%		14.64	%
Total regulatory capital to risk-weighted assets  (1)		15.12	%		15.06	%		15.68	%		15.66	%		15.85	%
Common equity tier 1 capital to risk-weighted assets   (1)		14.01	%		n.a.			n.a.			n.a.			n.a.
Book value per share	$	21.10		$	20.83		$	20.83		$	20.63		$	20.38
Outstanding shares		24,733,868			25,044,877			25,076,794			25,069,700			25,043,482

(1) Estimated ratio at March 31, 2015

Sandy Spring Bancorp, Inc. and Subsidiaries
LOAN PORTFOLIO QUALITY DETAIL - UNAUDITED
	2015		2014
(Dollars in thousands)	March 31,		December 31,		September 30,		June 30,		March 31,
Non-Performing Assets:
Loans and leases 90 days past due:
Commercial business	$	-	$	-	$	-	$	1	$	-
Commercial real estate:
Commercial AD&C		-		-		-		-		-
Commercial investor real estate		-		-		-		-		-
Commercial owner occupied real estate		-		-		649		-		-
Leasing		-		-		-		-		-
Consumer		-		-		6		3		-
Residential real estate:
Residential mortgage		-		-		-		-		-
Residential construction		-		-		-		-		-
Total loans and leases 90 days past due		-		-		655		4		-
Non-accrual loans and leases:
Commercial business		4,166		3,184		4,151		4,309		3,272
Commercial real estate:
Commercial AD&C		1,363		2,464		3,792		3,739		4,133
Commercial investor real estate		10,083		8,156		8,210		6,731		7,284
Commercial owner occupied real estate		8,974		8,941		10,742		10,868		7,150
Leasing		-		-		-		-		-
Consumer		1,962		1,668		1,830		2,058		2,115
Residential real estate:
Residential mortgage		3,235		3,012		4,417		4,501		5,025
Residential construction		788		1,105		2,497		2,143		2,304
Total non-accrual loans and leases		30,571		28,530		35,639		34,349		31,283
Total restructured loans - accruing		5,446		5,497		7,382		7,364		7,411
Total non-performing loans and leases		36,017		34,027		43,676		41,717		38,694
Other assets and real estate owned (OREO)		3,227		3,195		1,762		1,967		1,619
Total non-performing assets	$	39,244	$	37,222	$	45,438	$	43,684	$	40,313

	For the quarter ended,
	March 31,			December 31,			September 30,			June 30,			March 31,
(Dollars in thousands)	2015			2014			2014			2014			2014
Analysis of Non-accrual Loan and Lease Activity:
Balance at beginning of period	$	28,530		$	35,639		$	34,349		$	31,283		$	30,574
Non-accrual balances transferred to OREO		(32	)		(1,475	)		(300	)		(390	)		(281	)
Non-accrual balances charged-off		(1,077	)		(1,033	)		(216	)		(357	)		(513	)
Net payments or draws		(1,067	)		(4,139	)		(590	)		(1,580	)		(1,073	)
Loans placed on non-accrual		4,217			779			2,396			5,393			2,576
Non-accrual loans brought current		-			(1,241	)		-			-			-
Balance at end of period	$	30,571		$	28,530		$	35,639		$	34,349		$	31,283
Analysis of Allowance for Loan Losses:
Balance at beginning of period	$	37,802		$	37,574		$	37,959		$	38,026		$	38,766
Provision (credit) for loan and lease losses		597			853			(192	)		158			(982	)
Less loans charged-off, net of recoveries:
Commercial business		(89	)		50			(58	)		28			(768	)
Commercial real estate:
Commercial AD&C		706			529			-			-			-
Commercial investor real estate		(5	)		(5	)		(2	)		(23	)		(5	)
Commercial owner occupied real estate		212			(6	)		-			265			-
Leasing		-			-			-			-			-
Consumer		43			83			244			11			331
Residential real estate:
Residential mortgage		65			(17	)		43			(27	)		203
Residential construction		(8	)		(9	)		(34	)		(29	)		(3	)
Net charge-offs		924			625			193			225			(242	)
Balance at end of period	$	37,475		$	37,802		$	37,574		$	37,959		$	38,026
Asset Quality Ratios:
Non-performing loans to total loans		1.14	%		1.09	%		1.47	%		1.43	%		1.37	%
Non-performing assets to total assets		0.89	%		0.85	%		1.07	%		1.03	%		0.97	%
Allowance for loan losses to loans		1.18	%		1.21	%		1.26	%		1.30	%		1.34	%
Allowance for loan losses to non-performing loans		104.05	%		111.09	%		86.03	%		90.99	%		98.27	%
Annualized net charge-offs to average loans		0.12	%		0.08	%		0.03	%		0.03	%		(0.04	)%

Sandy Spring Bancorp, Inc. and Subsidiaries
CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES - UNAUDITED
	Three Months Ended March 31,
	2015								2014
						Annualized								Annualized
	Average			(1)		Average			Average			(1)		Average
(Dollars in thousands and tax-equivalent)	Balances			Interest		Yield/Rate			Balances			Interest		Yield/Rate
Assets
Residential mortgage loans(2)	$	731,301		$	6,200		3.39	%	$	633,160		$	5,506		3.48	%
Residential construction loans		132,456			1,221		3.74			134,261			1,254		3.79
Commercial ADC loans		206,105			2,337		4.60			162,544			2,073		5.17
Commercial investor real estate loans		645,163			7,579		4.76			557,168			6,733		4.90
Commercial owner occupied real estate loans		611,722			7,165		4.99			584,155			7,067		5.08
Commercial business loans		383,111			4,212		4.38			349,734			4,037		4.64
Leasing		44			1		5.19			567			6		4.53
Consumer loans		425,434			3,500		3.36			377,822			3,117		3.37
Total loans and leases(3)		3,135,336			32,215		4.19			2,799,411			29,793		4.34
Taxable securities		629,266			3,936		2.54			710,246			4,452		2.51	��
Tax-exempt securities(4)		296,417			3,170		4.34			302,455			3,267		4.32
Interest-bearing deposits with banks		36,155			22		0.25			32,925			20		0.25
Federal funds sold		474			-		0.22			476			-		0.22
Total interest-earning assets		4,097,648			39,343		3.90			3,845,513			37,532		3.96
Less:  allowance for loan and lease losses		(37,444	)							(39,393	)
Cash and due from banks		46,430								45,553
Premises and equipment, net		50,658								45,879
Other assets		215,696								207,662
Total assets	$	4,372,988							$	4,105,214
Liabilities and Stockholders' Equity
Interest-bearing demand deposits	$	524,059			106		0.08	%	$	460,245			92		0.08	%
Regular savings deposits		270,198			34		0.05			249,185			48		0.08
Money market savings deposits		831,707			273		0.13			877,864			273		0.13
Time deposits		443,534			781		0.71			463,379			771		0.67
Total interest-bearing deposits		2,069,498			1,194		0.23			2,050,673			1,184		0.23
Other borrowings		90,188			50		0.22			62,864			38		0.24
Advances from FHLB		622,889			3,236		2.11			600,922			3,218		2.17
Subordinated debentures		35,000			219		2.50			35,000			218		2.49
Total interest-bearing liabilities		2,817,575			4,699		0.68			2,749,459			4,658		0.69
Noninterest-bearing demand deposits		986,688								825,968
Other liabilities		47,379								25,936
Stockholders' equity		521,346								503,851
Total liabilities and stockholders' equity	$	4,372,988							$	4,105,214
Net interest income and spread				$	34,644		3.22	%				$	32,874		3.27	%
Less: tax-equivalent adjustment					1,271								1,282
Net interest income				$	33,373							$	31,592
Interest income/earning assets							3.90	%							3.96	%
Interest expense/earning assets							0.46								0.49
Net interest margin							3.44	%							3.47	%

(1) Tax-equivalent income has been adjusted using the combined marginal federal and state rate of 39.88% for 2015 and  2014. The annualized taxable-equivalent adjustments utilized in the above table to compute yields aggregated to $1.3 million and $1.3 million in 2015 and 2014, 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.