UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT
                     PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934


      Date of Report (Date of earliest event reported): September 21, 2001


                           SANDY SPRING BANCORP, INC.
             (Exact name of registrant as specified in its charter)


          Maryland                    0-19065                 52-1532952
          --------                    -------                 ----------
(State or other jurisdiction of  (Commission file number)    IRS Employer
incorporation or organization)                             Identification No.)


                              17801 GEORGIA AVENUE
                              OLNEY, MARYLAND 20832
                              ---------------------
               (Address of principal executive offices) (Zip Code)


                                 (301) 774-6400
                                 --------------
              (Registrant's telephone number, including area code)


                                       N/A
                                       ---
          (Former Name or Former Address, if Changed Since Last Report)


                                     


ITEM 5.  Other Event

SANDY SPRING NATIONAL BANK OF MARYLAND BECOMES STATE-CHARTERED INSTITUTION

September 25, 2001

Sandy Spring  National  Bank of Maryland,  a  wholly-owned  subsidiary  of Sandy
Spring  Bancorp,  Inc.,  announced  today  that  its  application  to  become  a
state-chartered trust company,  filed on June 20, 2001, was recently approved by
the Maryland  State  Commissioner  of Financial  Regulation.  The bank commenced
operations  as Sandy Spring Bank, a  state-chartered  trust  company,  effective
September 21, 2001.

ITEM 7.  Financial Statements and Exhibits.

(c) Exhibit 99.1  -- Press Release dated September 25, 2001.

                                   SIGNATURES

     Pursuant  to the  requirements  of  Section  13 or 15(d) of the  Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.


                                              SANDY SPRING BANCORP, INC.
                                              (REGISTRANT)


Dated:   September 25, 2001                   By: /s/ Hunter R. Hollar
                                                  ------------------------------
                                                  Hunter R. Hollar
                                                  President and CEO



                                 EXHIBIT INDEX

Exhibit
Number          Description
-------         -----------

99.1            Press Release dated September 25, 2001.