OLNEY, Md., Jan. 17, 2019 (GLOBE NEWSWIRE) — Sandy Spring Bancorp, Inc., (Nasdaq-SASR), the parent company of Sandy Spring Bank, reported net income for the fourth quarter of 2018 of $25.6 million ($0.72 per diluted share) compared to net income of $8.3 million ($0.34 per diluted share) for the fourth quarter of 2017 and net income of $29.2 million ($0.82 per diluted share) for the third quarter of 2018.  The previous quarter’s pre-tax results included $2.0 million of recovered interest and $0.6 million in merger expenses.  The third quarter’s net income excluding the after-tax impact of these items would have been $28.2 million or $0.79 per diluted share. The prior year’s fourth quarter results included $1.8 million in post-tax merger expenses and $5.6 million in additional income tax expense from the revaluation of the deferred tax assets as a result of the reduction of the corporate tax rate under the Tax Cuts and Jobs Act that became effective at the end of 2017.  The combined impact of those items in the prior year’s fourth quarter resulted in a reduction to quarterly earnings per share of approximately $0.30 per share.

Net income for the full year 2018 was a record $100.9 million ($2.82 per diluted share).  The results for 2018 include the effect of merger expenses associated with the acquisition of WashingtonFirst Bankshares (“WashingtonFirst”) totaling $11.8 million and $2.4 million in recovered interest income from previously acquired credit impaired loans.  The additional merger expenses, net of the interest recoveries, resulted in an after tax reduction to earnings per share of approximately $0.19 per share for full-year 2018.  Net income for 2017, which includes the additional income tax expense and merger expenses, was $53.2 million ($2.20 per share).  These items reduced the prior year’s earnings per share by approximately $0.33 per share.

“Last year was a banner year for our organization,” said Daniel J. Schrider, President and Chief Executive Officer. “In 2018 we successfully completed the acquisition of WashingtonFirst, expanded our presence throughout Greater Washington, and marked our 150th anniversary. And, we achieved solid core growth in a competitive marketplace. We are well positioned for 2019.”

The results of operations from the January 1, 2018, acquisition of WashingtonFirst Bankshares are included in the Company’s consolidated results of operations for 2018.  At the acquisition date, WashingtonFirst had assets of $2.1 billion, loans of $1.7 billion and deposits of $1.6 billion.  Cost savings as a result of the synergies from the combination of the two institutions will continue to be realized into the first half of 2019.

Fourth Quarter Highlights: 

• Post-acquisition loan growth momentum remained strong during the quarter.  Compared to the post-acquisition combined portfolio at the beginning of 2018, the loan portfolio has experienced 9% growth. Overall, total loans increased 52% compared to the fourth quarter of 2017 as a result of strong organic growth and the WashingtonFirst acquisition.
   
• The bank achieved 6% post-acquisition growth in total deposits in a competitive marketplace and a dynamic interest rate environment.
   
• The net interest margin for the fourth quarter of 2018 was 3.57% compared to 3.57% for the fourth quarter of 2017 and 3.71% for the third quarter of 2018.  Excluding the recovered interest on an acquired credit impaired loan the net interest margin would have been 3.60% for the third quarter of 2018.
   
• Fourth quarter results reflected an annualized return on average assets of 1.25% and annualized return on average equity of 9.70%.  The fourth quarter of 2017 results, which included the impact of the pre-tax merger expenses in addition to the income tax expense recognized as a result of the Tax Cuts and Jobs Act passed at the end of 2017, reflected a return on average assets of 0.61% and a return on average equity of 5.82%.
• The Non-GAAP efficiency ratio was 51.78% for the current quarter compared to 55.69% for the fourth quarter of 2017 and 49.27% for the third quarter of 2018.  The efficiency ratio for the third quarter of 2018, excluding the previously mentioned interest recoveries, was 50.48%.

Review of Balance Sheet and Credit Quality

At December 31, 2018, total assets amounted to $8.2 billion compared to $5.4 billion at December 31, 2017. This increase was primarily the result of the acquisition of WashingtonFirst’s $2.1 billion of assets. Total loans at December 31, 2018, were $6.6 billion compared to $4.3 billion at December 31, 2017.  Post-acquisition asset growth has been primarily the result of net loan growth in 2018.

Tangible common equity totaled $728 million at December 31, 2018, compared to $484 million at December 31, 2017. At December 31, 2018, the ratio of tangible common equity to tangible assets increased to 9.23% compared to 9.04% at December 31, 2017.  The initial impact on tangible common equity of the growth in intangible assets associated with the WashingtonFirst acquisition has been substantially offset during 2018 by increased net earnings.  The Company had a total risk-based capital ratio of 12.27%, a common equity tier 1 risk-based capital ratio of 10.91%, a tier 1 risk-based capital ratio of 11.07% and a tier 1 leverage ratio of 9.51% at December 31, 2018.

The ratio of non-performing loans to total loans decreased to 0.55% at December 31, 2018, compared to 0.68% at December 31, 2017, as a result of the growth in the loan portfolio.  Non-performing loans totaled $36.0 million at December 31, 2018, compared to $29.3 million at December 31, 2017, and $33.3 million at September 30, 2018. Non-performing loans include accruing loans 90 days or more past due and restructured loans, but exclude non-performing loans acquired in the WashingtonFirst acquisition.

Net loan charge-offs/recoveries were not significant for the fourth quarter of 2018 or the fourth quarter of 2017.  The allowance for loan losses represented 0.81% of outstanding loans and 149% of non-performing loans at December 31, 2018, compared to 1.05% of outstanding loans and 154% of non-performing loans at December 31, 2017. The decline in the ratio of the allowance for loan losses to outstanding loans ratio is the result of the accounting for credit losses on the loans acquired in the WashingtonFirst acquisition, as any incurred credit losses have been embedded in the determination of the fair values of those loans. 

Income Statement Review

For the fourth quarter of 2018, net interest income increased 52% to $66.1 million compared to $43.5 million for the fourth quarter of 2017 as average loans increased 52% primarily as a result of the WashingtonFirst acquisition and, to a lesser extent, the Company’s organic loan growth. The net interest margin for the current quarter was 3.57% compared to the net interest margin for the fourth quarter of 2017 of 3.57%.  Amortization of the fair value adjustments to both interest-earning assets and interest-bearing liabilities directly attributable to the acquisition had a 12 basis point positive effect on net interest margin for the current period. This favorable margin impact was offset by approximately 5 basis points as a result of the impact that the current year’s reduction in the tax rate had on tax-advantaged investments.

The provision for loan losses was $3.4 million for the fourth quarter of 2018, compared to $0.5 million for the fourth quarter of 2017 and $1.9 million for the third quarter of 2018. The increase in the provision reflects the impact of organic loan production and the impact of acquired loans being re-underwritten as they matured under their original lending arrangements during the fourth quarter of 2018.  

Non-interest income increased 14% to $14.0 million for the fourth quarter of 2018, compared to $12.3 million for the fourth quarter of 2017.  The increase in non-interest income was due primarily to the impact of increased mortgage banking activities, income from wealth management activities and credit related fees.

Non-interest expenses increased 22% to $42.7 million for the fourth quarter of 2018, compared to $35.1 million in the fourth quarter of 2017. The prior year’s quarter included $2.9 million in merger expenses.  Excluding these expenses, non-interest expenses increased 33% compared to fourth quarter of 2017 due to increased compensation and benefit costs, occupancy and other operational expenses as a result of the acquisition.  The non-GAAP efficiency ratio improved to 51.78% for the fourth quarter of 2018, compared to 55.69% for the fourth quarter of 2017, as a result of the growth in net interest income.

Net interest income for the year ended 2018 increased 54%, compared to 2017, due to the combination of the acquisition and organic loan growth. For the year ended December 31, 2018, the net interest margin was 3.60% compared to 3.55% for the prior year. Net interest income for the year ended December 31, 2018 includes $2.4 million in recovered interest income on acquired credit impaired loans.  This amount compares to interest recoveries of $1.1 million for 2017.   Excluding these recoveries, the net interest margin would have been 3.58% for the year ended December 31, 2018 compared to 3.53% for the year ended December 31, 2017.  The amortization of the fair value adjustments is estimated to be 13 basis points on an annual basis.  This favorable margin effect was partially offset by the impact that the current year’s reduction in the tax rate had on the tax-advantaged securities in the investment portfolio, which adversely affected the margin by 5 basis points.  

The provision for loan losses was $9.0 million for the year ended December 31, 2018, compared to $3.0 million for 2017. The increase in the provision reflects the organic growth in the loan portfolio year over year in addition to the impact of acquired loans being re-underwritten as they reached maturity under their original lending arrangements and cease to be accounted for as acquired loans. 

Non-interest income was $61.0 million for 2018, compared to $51.2 million for 2017.  The year ended December 31, 2018, included gains of $0.2 million on sales of investment securities compared to $1.3 million in 2017.  Excluding these gains, non-interest income increased 22% compared to the prior year period primarily due to increases in mortgage banking activities, wealth management income and BOLI insurance mortality proceeds. Mortgage lending operations acquired as part of the WashingtonFirst transaction has resulted in significant growth in mortgage banking income for the year ended December 31, 2018. 

Non-interest expenses increased 39% to $179.8 million for the year ended December 31, 2018, compared to $129.1 million for the prior year period.  Excluding merger expense from both years in addition to the prior year’s prepayment penalties on the early pay-off of high rate FHLB advances, the year-over-year increase in non-interest expense was 36%.  The majority of the increase was in compensation and benefit costs, occupancy costs and other operational expenses as a result of the acquisition of WashingtonFirst.  The non-GAAP efficiency ratio improved to 50.87% for 2018 compared to 54.59% for 2017 as a direct result of the growth in net interest income.  Excluding the interest recoveries the non-GAAP efficiency ratio for 2018 was 51.24% compared to 55.34% for 2017.

Explanation of Non-GAAP Financial Measures

Reported amounts are presented in accordance with generally accepted accounting principles in the United States (“GAAP”). The Company’s management uses supplemental non-GAAP financial measures in its analysis of the Company’s performance. These non-GAAP financial measures include: reported net income excluding intangible asset amortization, merger related expenses and the loss on the FHLB redemption from non-interest expense; non-interest income excluding securities gains (losses); and tax-equivalent net interest income, which adjusts the interest earned on tax-advantaged loans and tax-exempt investment securities to an amount comparable to interest subject to normal income taxes. Because the adjustments made to derive non-GAAP financial measures can vary from period to period, the Company’s management believes that the non-GAAP financial measures are useful in comparing period to period operating performance. Additionally, the Company believes this information is utilized by regulators and market analysts to evaluate a company’s financial condition and therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for financial results in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Please refer to Non-GAAP Reconciliation table included with this release.

Conference Call

The Company’s management will host a conference call to discuss its fourth quarter results today at 2:00 P.M. (ET).  A live Webcast of the conference call is available through the Investor Relations section of the Sandy Spring Website at AR.  Participants may call 1-866-235-9910. A password is not necessary.  Visitors to the Website are advised to log on 10 minutes ahead of the scheduled start of the call.  An internet-based replay will be available on the website until 9:00 am (ET) January 31, 2019.  A replay of the teleconference will be available through the same time period by calling 1-877-344-7529 under conference call number 10127438.

About Sandy Spring Bancorp, Inc.

Sandy Spring Bancorp, Inc., headquartered in Olney, Maryland, is the holding company for Sandy Spring Bank. Independent and community-oriented, Sandy Spring Bank offers a broad range of commercial banking, retail banking, mortgage and trust services throughout central Maryland, Northern Virginia, and the Greater Washington, D.C. market. Through its subsidiaries, Sandy Spring Insurance Corporation and West Financial Services, Inc., Sandy Spring Bank also offers a comprehensive menu of insurance and wealth management services. Visit www.sandyspringbank.com for more information.

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:  [email protected] 
[email protected] 
Web site: www.sandyspringbank.com 

Media Contact:
Jen Schell
301-570-8331
[email protected] 

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 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; 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, 2017, 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									Twelve Months Ended
		December 31,						%			December 31,						%
(Dollars in thousands, except per share data)			2018			2017		Change				2018			2017		Change
Results of Operations:
Net interest income		$	66,145		$	43,492		52	%		$	260,445		$	168,768		54	%
Provision for loan losses			3,403			527		n.m				9,023			2,977		n.m
Non-interest income			14,030			12,294		14				61,049			51,243		19
Non-interest expenses			42,667			35,059		22				179,783			129,099		39
Income before income taxes			34,105			20,200		69				132,688			87,935		51
Net income			25,566			8,267		n.m				100,864			53,209		90
Pre-tax pre-provision income		$	37,508		$	23,647		59			$	153,477		$	95,164		61
Return on average assets			1.25	%		0.61	%					1.27	%		1.02	%
Return on average common equity			9.70	%		5.82	%					9.84	%		9.66	%
Net interest margin			3.57	%		3.57	%					3.60	%		3.55	%
Efficiency ratio – GAAP basis  (1)			53.22	%		62.85	%					55.92	%		58.68	%
Efficiency ratio – Non-GAAP basis  (1)			51.78	%		55.69	%					50.87	%		54.59	%
Per share data:
Basic net income		$	0.72		$	0.34		112	%		$	2.82		$	2.20		28	%
Diluted net income		$	0.72		$	0.34		112			$	2.82		$	2.20		28
Average fully diluted shares			35,747,478			24,228,471		48				35,728,146			24,207,728		48
Dividends declared per share		$	0.28		$	0.26		8			$	1.10		$	1.04		6
Book value per share			30.06			23.50		28				30.06			23.50		28
Tangible book value per share			20.48			20.18		1				20.48			20.18		1
Outstanding shares			35,530,734			23,996,293		48				35,530,734			23,996,293		48
Financial Condition at period-end:
Investment securities		$	1,010,724		$	775,025		30	%		$	1,010,724		$	775,025		30	%
Loans			6,573,014			4,314,248		52				6,573,014			4,314,248		52
Interest-earning assets			7,640,978			5,155,928		48				7,640,978			5,155,928		48
Assets			8,243,272			5,446,675		51				8,243,272			5,446,675		51
Deposits			5,914,880			3,963,662		49				5,914,880			3,963,662		49
Interest-bearing liabilities			5,378,026			3,584,462		50				5,378,026			3,584,462		50
Stockholders’ equity			1,067,903			563,816		89				1,067,903			563,816		89
Capital ratios:
Tier 1 leverage  (4)			9.51	%		9.24	%					9.51	%		9.24	%
Tier 1 capital to risk-weighted assets  (4)			11.07	%		10.84	%					11.07	%		10.84	%
Total regulatory capital to risk-weighted assets  (4)			12.27	%		11.85	%					12.27	%		11.85	%
Common equity tier 1 capital to risk-weighted assets  (4)			10.91	%		10.84	%					10.91	%		10.84	%
Tangible common equity to tangible assets  (2)			9.23	%		9.04	%					9.23	%		9.04	%
Average equity to average assets			12.90	%		10.54	%					12.87	%		10.51	%
Credit quality ratios:
Allowance for loan losses to loans			0.81	%		1.05	%					0.81	%		1.05	%
Non-performing loans to total loans			0.55	%		0.68	%					0.55	%		0.68	%
Non-performing assets to total assets			0.46	%		0.58	%					0.46	%		0.58	%
Allowance for loan losses to non-performing loans			148.51	%		154.20	%					148.51	%		154.20	%
Annualized net charge-offs to average loans  (3)			0.02	%		0.02	%					0.01	%		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, merger expenses and loss on FHLB redemption from non-interest expense;
securities gains (losses) from non-interest income and adds 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, excluding residential mortgage loans held-for-sale.
(4) Estimated ratio at December 31, 2018

Sandy Spring Bancorp, Inc. and Subsidiaries
RECONCILIATION TABLE – UNAUDITED
		Three Months Ended								Twelve Months Ended
		December 31,								December 31,
(Dollars in thousands)			2018				2017				2018				2017
Pre-tax pre-provision income:
Net income		$	25,566			$	8,267			$	100,864			$	53,209
Plus non-GAAP adjustments:
Merger expenses			–				2,920				11,766				4,252
Income taxes			8,539				11,933				31,824				34,726
Provision for loan losses			3,403				527				9,023				2,977
Pre-tax pre-provision income		$	37,508			$	23,647			$	153,477			$	95,164
Efficiency ratio – GAAP basis:
Non-interest expenses		$	42,667			$	35,059			$	179,783			$	129,099
Net interest income plus non-interest income		$	80,175			$	55,786			$	321,494			$	220,011
Efficiency ratio – GAAP basis			53.22	%			62.85	%			55.92	%			58.68	%
Efficiency ratio – Non-GAAP basis:
Non-interest expenses		$	42,667			$	35,059			$	179,783			$	129,099
Less non-GAAP adjustments:
Amortization of intangible assets			540				25				2,162				101
Loss on FHLB Redemption			–				–				–				1,275
Merger expenses			–				2,920				11,766				4,252
Non-interest expenses –  as adjusted		$	42,127			$	32,114			$	165,855			$	123,471
Net interest income plus non-interest income		$	80,175			$	55,786			$	321,494			$	220,011
Plus non-GAAP adjustment:
Tax-equivalent income			1,232				1,874				4,715				7,459
Less non-GAAP adjustment:
Securities gains (losses)			45				(2	)			190				1,273
Net interest income plus non-interest income – as adjusted		$	81,362			$	57,662			$	326,019			$	226,197
Efficiency ratio – Non-GAAP basis			51.78	%			55.69	%			50.87	%			54.59	%
Supplemental Non-GAAP Performance Measurements:
Net income – GAAP		$	25,566			$	8,267			$	100,864			$	53,209
Add: Merger expenses – net of tax			–				1,755				8,692				2,556
Less: Acquisition fair value marks – net of tax			1,716				12				7,493				77
Add: Incremental impact of revaluation of deferred tax assets			–				5,544				–				5,544
Net income – Non-GAAP		$	23,850			$	15,554			$	102,063			$	61,232
Diluted net income per share – Non-GAAP		$	0.67			$	0.64			$	2.86			$	2.53
Return on average assets – Non-GAAP			1.17	%			1.15	%			1.28	%			1.17	%
Return on average common equity – Non-GAAP			9.05	%			10.95	%			9.96	%			11.11	%
Tangible common equity ratio:
Total stockholders’ equity		$	1,067,903			$	563,816			$	1,067,903			$	563,816
Accumulated other comprehensive loss			15,754				6,857				15,754				6,857
Goodwill			(346,130	)			(85,768	)			(346,130	)			(85,768	)
Other intangible assets, net			(9,788	)			(580	)			(9,788	)			(580	)
Tangible common equity		$	727,739			$	484,325			$	727,739			$	484,325
Total assets		$	8,243,272			$	5,446,675			$	8,243,272			$	5,446,675
Goodwill			(346,130	)			(85,768	)			(346,130	)			(85,768	)
Other intangible assets, net			(9,788	)			(580	)			(9,788	)			(580	)
Tangible assets		$	7,887,354			$	5,360,327			$	7,887,354			$	5,360,327
Tangible common equity ratio			9.23	%			9.04	%			9.23	%			9.04	%
Outstanding common shares			35,530,734				23,996,293				35,530,734				23,996,293
Tangible book value per common share		$	20.48			$	20.18			$	20.48			$	20.18

Sandy Spring Bancorp, Inc. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF CONDITION  – UNAUDITED
		December 31,				December 31,
(Dollars in thousands)			2018				2017
Assets
Cash and due from banks		$	67,014			$	55,693
Federal funds sold			609				2,845
Interest-bearing deposits with banks			33,858				53,962
Cash and cash equivalents			101,481				112,500
Residential mortgage loans held for sale (at fair value)			22,773				9,848
Investments available-for-sale (at fair value)			937,335				729,507
Other equity securities			73,389				45,518
Total loans			6,573,014				4,314,248
Less: allowance for loan losses			(53,486	)			(45,257	)
Net loans			6,519,528				4,268,991
Premises and equipment, net			61,942				54,761
Other real estate owned			1,584				2,253
Accrued interest receivable			24,609				15,480
Goodwill			346,130				85,768
Other intangible assets, net			9,788				580
Other assets			144,713				121,469
Total assets		$	8,243,272			$	5,446,675
Liabilities
Noninterest-bearing deposits		$	1,750,319			$	1,264,392
Interest-bearing deposits			4,164,561				2,699,270
Total deposits			5,914,880				3,963,662
Securities sold under retail repurchase agreements and federal funds purchased			327,429				119,359
Advances from FHLB			848,611				765,833
Subordinated debentures			37,425				–
Accrued interest payable and other liabilities			47,024				34,005
Total liabilities			7,175,369				4,882,859
Stockholders’ Equity
Common stock — par value $1.00; shares authorized 100,000,000; shares issued and outstanding
35,530,734 and 23,996,293 at December 31, 2018 and December 31, 2017, respectively			35,531				23,996
Additional paid in capital			606,573				168,188
Retained earnings			441,553				378,489
Accumulated other comprehensive loss			(15,754	)			(6,857	)
Total stockholders’ equity			1,067,903				563,816
Total liabilities and stockholders’ equity		$	8,243,272			$	5,446,675

Sandy Spring Bancorp, Inc. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF INCOME – UNAUDITED
		Three Months Ended							Twelve Months Ended
		December 31,							December 31,
(Dollars in thousands, except per share data)			2018			2017				2018			2017
Interest Income:
Interest and fees on loans		$	78,081		$	45,230			$	293,131		$	172,091
Interest on loans held for sale			262			6				1,245			279
Interest on deposits with banks			222			121				1,304			410
Interest and dividends on investment securities:
Taxable			5,219			3,309				20,516			13,881
Exempt from federal income taxes			1,820			2,001				7,855			8,111
Interest on federal funds sold			3			9				31			27
Total interest income			85,607			50,676				324,082			194,799
Interest Expense:
Interest on deposits			12,556			4,044				39,139			13,256
Interest on retail repurchase agreements and federal funds purchased			570			99				1,169			337
Interest on advances from FHLB			5,851			3,041				21,408			12,426
Interest on subordinated debt			485			–				1,921			12
Total interest expense			19,462			7,184				63,637			26,031
Net interest income			66,145			43,492				260,445			168,768
Provision for loan losses			3,403			527				9,023			2,977
Net interest income after provision for loan losses			62,742			42,965				251,422			165,791
Non-interest Income:
Investment securities gains (losses)			45			(2	)			190			1,273
Service charges on deposit accounts			2,459			2,177				9,324			8,298
Mortgage banking activities			1,130			654				7,073			2,734
Wealth management income			5,492			5,054				21,284			19,146
Insurance agency commissions			1,138			1,307				6,158			6,231
Income from bank owned life insurance			663			595				4,327			2,403
Bank card fees			1,368			1,218				5,567			4,827
Other income			1,735			1,291				7,126			6,331
Total non-interest income			14,030			12,294				61,049			51,243
Non-interest Expenses:
Salaries and employee benefits			23,934			18,607				96,998			73,132
Occupancy expense of premises			4,413			3,146				18,352			13,053
Equipment expenses			2,426			1,802				9,335			7,015
Marketing			1,061			896				3,924			3,119
Outside data services			1,763			1,441				6,603			5,486
FDIC insurance			1,255			827				5,095			3,305
Amortization of intangible assets			540			25				2,162			101
Merger expenses			–			2,920				11,766			4,252
Other expenses			7,275			5,395				25,548			19,636
Total non-interest expenses			42,667			35,059				179,783			129,099
Income before income taxes			34,105			20,200				132,688			87,935
Income tax expense			8,539			11,933				31,824			34,726
Net income		$	25,566		$	8,267			$	100,864		$	53,209
Net Income Per Share Amounts:
Basic net income per share		$	0.72		$	0.34			$	2.82		$	2.20
Diluted net income per share		$	0.72		$	0.34			$	2.82		$	2.20
Dividends declared per share		$	0.28		$	0.26			$	1.10		$	1.04

Sandy Spring Bancorp, Inc. and Subsidiaries
HISTORICAL TRENDS – QUARTERLY FINANCIAL DATA – UNAUDITED
			2018																2017
(Dollars in thousands, except per share data)		Q4				Q3				Q2				Q1				Q4				Q3				Q2				Q1
Profitability for the Quarter:
Tax-equivalent interest income		$	86,839			$	85,595			$	79,774			$	76,589			$	52,550			$	51,477			$	50,477			$	47,754
Interest expense			19,462				16,783				14,779				12,613				7,184				6,892				6,250				5,705
Tax-equivalent net interest income			67,377				68,812				64,995				63,976				45,366				44,585				44,227				42,049
Tax-equivalent adjustment			1,232				1,221				1,177				1,085				1,874				1,888				1,901				1,796
Provision for loan losses			3,403				1,890				1,733				1,997				527				934				1,322				194
Non-interest income			14,030				15,033				14,868				17,118				12,294				12,746				13,571				12,632
Non-interest expenses			42,667				42,393				45,082				49,641				35,059				31,191				32,868				29,981
Income before income taxes			34,105				38,341				31,871				28,371				20,200				23,318				21,707				22,710
Income tax expense			8,539				9,107				7,472				6,706				11,933				8,229				6,966				7,598
Net income		$	25,566			$	29,234			$	24,399			$	21,665			$	8,267			$	15,089			$	14,741			$	15,112
Financial Performance:
Pre-tax pre-provision income		$	37,508			$	40,811			$	35,832			$	39,326			$	23,647			$	24,597			$	24,016			$	22,904
Return on average assets			1.25	%			1.45	%			1.23	%			1.12	%			0.61	%			1.13	%			1.14	%			1.20	%
Return on average common equity			9.70	%			11.26	%			9.66	%			8.70	%			5.82	%			10.74	%			10.80	%			11.45	%
Net interest margin			3.57	%			3.71	%			3.56	%			3.58	%			3.57	%			3.54	%			3.60	%			3.51	%
Efficiency ratio – GAAP basis (1)			53.22	%			51.31	%			57.29	%			62.04	%			62.85	%			56.26	%			58.80	%			56.69	%
Efficiency ratio – Non-GAAP basis (1)			51.78	%			49.27	%			52.98	%			49.54	%			55.69	%			53.76	%			54.10	%			54.78	%
Per Share Data:
Basic net income per share		$	0.72			$	0.82			$	0.68			$	0.61			$	0.34			$	0.62			$	0.61			$	0.63
Diluted net income per share		$	0.72			$	0.82			$	0.68			$	0.61			$	0.34			$	0.62			$	0.61			$	0.63
Average fully diluted shares			35,747,478				35,744,085				35,743,927				35,683,542				24,228,471				24,223,004				24,262,745				24,158,566
Dividends declared per common share		$	0.28			$	0.28			$	0.28			$	0.26			$	0.26			$	0.26			$	0.26			$	0.26
Non-interest Income:
Securities gains (losses)		$	45			$	82			$	–			$	63			$	(2	)		$	–			$	1,273			$	2
Service charges on deposit accounts			2,459				2,316				2,290				2,259				2,177				2,140				2,017				1,964
Mortgage banking activities			1,130				1,672				2,064				2,207				654				632				840				608
Wealth management income			5,492				5,344				5,387				5,061				5,054				4,864				4,744				4,484
Insurance agency commissions			1,138				2,016				1,180				1,824				1,307				1,950				1,222				1,752
Income from bank owned life insurance			663				663				670				2,331				595				609				605				594
Bank card fees			1,368				1,436				1,393				1,370				1,218				1,211				1,253				1,145
Other income			1,735				1,504				1,884				2,003				1,291				1,340				1,617				2,083
Total Non-interest Income		$	14,030			$	15,033			$	14,868			$	17,118			$	12,294			$	12,746			$	13,571			$	12,632
Non-interest Expense:
Salaries and employee benefits		$	23,934			$	24,488			$	24,664			$	23,912			$	18,607			$	18,442			$	18,282			$	17,801
Occupancy expense of premises			4,413				4,355				4,642				4,942				3,146				3,294				3,211				3,402
Equipment expenses			2,426				2,441				2,243				2,225				1,802				1,722				1,767				1,724
Marketing			1,061				770				945				1,148				896				784				776				663
Outside data services			1,763				1,736				1,707				1,397				1,441				1,286				1,367				1,392
FDIC insurance			1,255				1,257				1,390				1,193				827				850				823				805
Amortization of intangible assets			540				540				541				541				25				25				25				26
Merger expenses			–				580				2,228				8,958				2,920				345				987				–
Professional fees			1,966				1,351				1,699				1,040				1,439				1,053				1,045				955
Other real estate owned expenses			47				36				41				38				14				4				(6	)			5
Other expenses			5,262				4,839				4,982				4,247				3,942				3,386				4,591				3,208
Total Non-interest Expense		$	42,667			$	42,393			$	45,082			$	49,641			$	35,059			$	31,191			$	32,868			$	29,981
(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, merger expenses and loss on FHLB redemption from non-interest expense;
securities gains (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
			2018																2017
(Dollars in thousands)		Q4				Q3				Q2				Q1				Q4				Q3				Q2				Q1
Balance Sheets at Quarter End:
Residential mortgage loans		$	1,228,247			$	1,181,427			$	1,106,674			$	992,287			$	921,435			$	882,890			$	871,766			$	848,814
Residential construction loans			186,785				188,779				197,372				215,445				176,687				171,814				169,901				170,285
Commercial AD&C loans			681,201				631,589				609,266				564,871				292,443				295,222				314,259				309,350
Commercial investor real estate loans			1,958,395				1,924,397				1,923,827				1,928,439				1,112,710				1,104,669				1,069,988				979,410
Commercial owner occupied real estate loans			1,202,903				1,201,673				1,184,421				1,174,739				857,196				831,461				797,629				772,443
Commercial business loans			797,644				738,083				702,939				652,797				497,948				451,667				451,570				457,216
Consumer loans			517,839				523,011				525,574				532,973				455,829				456,395				458,058				455,478
Total loans			6,573,014				6,388,959				6,250,073				6,061,551				4,314,248				4,194,118				4,133,171				3,992,996
Allowance for loan losses			(53,486	)			(50,409	)			(48,493	)			(46,931	)			(45,257	)			(44,924	)			(45,079	)			(43,861	)
Loans held for sale			22,773				31,581				40,000				28,486				9,848				7,084				5,743				17,717
Investment securities			1,010,724				992,797				1,017,274				1,040,339				775,025				795,922				821,491				855,707
Interest-earning assets			7,640,978				7,428,534				7,532,664				7,285,731				5,155,928				5,049,229				4,988,704				4,919,927
Total assets			8,243,272				8,034,565				8,152,600				7,894,918				5,446,675				5,334,788				5,270,521				5,201,164
Noninterest-bearing demand deposits			1,750,319				1,902,537				1,910,690				1,767,523				1,264,392				1,312,710				1,302,536				1,234,505
Total deposits			5,914,880				5,898,394				5,837,826				5,627,206				3,963,662				3,955,792				3,885,445				3,799,198
Customer repurchase agreements			137,429				142,669				139,647				149,323				119,359				146,569				127,312				141,244
Total interest-bearing liabilities			5,378,026				5,042,431				5,168,055				5,057,645				3,584,462				3,422,568				3,380,221				3,380,937
Total stockholders’ equity			1,067,903				1,042,716				1,026,349				1,014,608				563,816				564,480				554,683				544,261
Quarterly Average Balance Sheets:
Residential mortgage loans		$	1,188,135			$	1,122,946			$	1,034,062			$	1,117,478			$	903,660			$	880,782			$	860,081			$	847,896
Residential construction loans			202,710				215,578				223,171				193,327				171,239				172,921				169,130				157,152
Commercial AD&C loans			647,115				632,354				576,076				582,876				289,737				291,569				302,924				310,325
Commercial investor real estate loans			1,936,936				1,905,427				1,924,759				1,988,340				1,114,960				1,090,641				1,010,389				945,080
Commercial owner occupied real estate loans			1,196,506				1,190,865				1,184,409				940,065				842,642				808,802				776,279				774,964
Commercial business loans			751,769				700,791				666,280				657,372				454,330				459,779				454,724				462,444
Consumer loans			522,453				524,605				531,965				538,198				458,378				457,526				461,672				458,162
Total loans			6,445,624				6,292,566				6,140,722				6,017,656				4,234,946				4,162,020				4,035,199				3,956,023
Loans held for sale			21,923				29,939				25,403				35,768				5,862				7,093				7,077				7,402
Investment securities			986,146				996,365				1,028,306				1,062,325				780,522				813,179				842,837				818,287
Interest-earning assets			7,495,353				7,372,536				7,311,272				7,212,878				5,061,075				5,019,133				4,922,389				4,829,208
Total assets			8,105,492				7,986,525				7,926,735				7,841,611				5,346,625				5,297,368				5,202,398				5,111,698
Noninterest-bearing demand deposits			1,766,672				1,822,931				1,796,644				1,651,258				1,322,157				1,293,470				1,251,396				1,159,715
Total deposits			5,822,580				5,783,992				5,657,420				5,489,715				3,991,936				3,916,657				3,810,180				3,673,731
Customer repurchase agreements			146,637				139,809				148,539				136,694				139,125				133,145				132,552				128,485
Total interest-bearing liabilities			5,230,254				5,076,717				5,058,016				5,116,904				3,419,669				3,407,279				3,360,128				3,375,002
Total stockholders’ equity			1,045,378				1,030,167				1,013,081				1,010,106				563,506				557,282				547,229				535,308
Financial Measures:
Average equity to average assets			12.90	%			12.90	%			12.78	%			12.88	%			10.54	%			10.52	%			10.52	%			10.47	%
Investment securities to earning assets			13.23	%			13.36	%			13.50	%			14.28	%			15.03	%			15.76	%			16.47	%			17.39	%
Loans to earning assets			86.02	%			86.01	%			82.97	%			83.20	%			83.68	%			83.06	%			82.85	%			81.16	%
Loans to assets			79.74	%			79.52	%			76.66	%			76.78	%			79.21	%			78.62	%			78.42	%			76.77	%
Loans to deposits			111.13	%			108.32	%			107.06	%			107.72	%			108.85	%			106.02	%			106.38	%			105.10	%
Capital Measures:
Tier 1 leverage  (1)			9.51	%			9.46	%			9.27	%			9.21	%			9.24	%			9.28	%			9.26	%			9.26	%
Tier 1 capital to risk-weighted assets  (1)			11.07	%			11.18	%			11.01	%			11.08	%			10.84	%			10.99	%			10.96	%			11.02	%
Total regulatory capital to risk-weighted assets  (1)			12.27	%			12.38	%			12.19	%			12.27	%			11.85	%			12.01	%			12.00	%			12.06	%
Common equity tier 1 capital to risk-weighted assets  (1)			10.91	%			11.02	%			10.85	%			10.92	%			10.84	%			10.99	%			10.96	%			11.02	%
Book value per share		$	30.06			$	29.35			$	28.90			$	28.61			$	23.50			$	23.53			$	23.13			$	22.74
Outstanding shares			35,530,734				35,521,541				35,511,943				35,463,269				23,996,293				23,990,370				23,983,997				23,930,165
(1) Estimated ratio at December 31, 2018

Sandy Spring Bancorp, Inc. and Subsidiaries
LOAN PORTFOLIO QUALITY DETAIL – UNAUDITED
			2018																2017
(Dollars in thousands)		December 31,				September 30,				June 30,				March 31,				December 31,				September 30,				June 30,				March 31,
Non-Performing Assets:
Loans 90 days past due:
Commercial business		$	49			$	150			$	6			$	–			$	–			$	–			$	–			$	–
Commercial real estate:
Commercial AD&C			–				1,261				–				–				–				–				–				–
Commercial investor real estate			–				–				–				–				–				–				–				–
Commercial owner occupied real estate			–				13				112				–				–				–				424				–
Consumer			219				563				–				126				–				1				4				–
Residential real estate:
Residential mortgage			221				–				–				–				225				225				–				232
Residential construction			–				–				–				–				–				–				–				–
Total loans 90 days past due			489				1,987				118				126				225				226				428				232
Non-accrual loans:
Commercial business			7,086				6,352				6,883				6,634				6,703				6,091				6,807				4,849
Commercial real estate:
Commercial AD&C			3,306				136				136				136				136				137				137				137
Commercial investor real estate			5,355				5,861				5,878				5,813				5,575				5,589				6,934				7,970
Commercial owner occupied real estate			4,234				3,352				3,440				3,524				3,582				5,012				4,926				5,106
Consumer			4,107				4,098				4,298				3,244				2,967				3,152				3,111				3,058
Residential real estate:
Residential mortgage			9,336				9,134				6,251				7,063				7,196				7,345				7,101				6,908
Residential construction			159				163				168				174				177				182				187				189
Total non-accrual loans			33,583				29,096				27,054				26,588				26,336				27,508				29,203				28,217
Total restructured loans – accruing			1,942				2,224				1,663				2,678				2,788				2,471				2,569				2,409
Total non-performing loans			36,014				33,307				28,835				29,392				29,349				30,205				32,200				30,858
Other assets and real estate owned (OREO)			1,584				2,118				2,361				2,761				2,253				1,448				1,460				1,294
Total non-performing assets		$	37,598			$	35,425			$	31,196			$	32,153			$	31,602			$	31,653			$	33,660			$	32,152
		For the Quarter Ended,
		December 31,				September 30,				June 30,				March 31,				December 31,				September 30,				June 30,				March 31,
(Dollars in thousands)			2018				2018				2018				2018				2017				2017				2017				2017
Analysis of Non-accrual Loan Activity:
Balance at beginning of period		$	29,096			$	27,054			$	26,588			$	26,336			$	27,508			$	29,203			$	28,217			$	29,211
Non-accrual balances transferred to OREO			–				–				–				(289	)			(888	)			(411	)			(175	)			(113	)
Non-accrual balances charged-off			(360	)			(91	)			(144	)			(411	)			(446	)			(1,127	)			(179	)			(391	)
Net payments or draws			(1,126	)			(1,777	)			(1,635	)			(357	)			(1,707	)			(1,869	)			(1,804	)			(1,382	)
Loans placed on non-accrual			5,973				4,193				2,245				1,309				2,504				1,712				3,144				1,461
Non-accrual loans brought current			–				(283	)			–				–				(635	)			–				–				(569	)
Balance at end of period		$	33,583			$	29,096			$	27,054			$	26,588			$	26,336			$	27,508			$	29,203			$	28,217
Analysis of Allowance for Loan Losses:
Balance at beginning of period		$	50,409			$	48,493			$	46,931			$	45,257			$	44,924			$	45,079			$	43,861			$	44,067
Provision for loan losses			3,403				1,890				1,733				1,997				527				934				1,322				194
Less loans charged-off, net of recoveries:
Commercial business			(9	)			(49	)			(73	)			322				48				1,029				107				260
Commercial real estate:
Commercial AD&C			–				–				–				(62	)			–				–				(103	)			–
Commercial investor real estate			109				(49	)			(8	)			(8	)			(8	)			(10	)			(78	)			(5	)
Commercial owner occupied real estate			–				–				–				–				243				5				–				–
Consumer			45				85				244				99				(71	)			103				189				167
Residential real estate:
Residential mortgage			183				(11	)			13				(22	)			(12	)			(32	)			(3	)			(16	)
Residential construction			(2	)			(2	)			(5	)			(6	)			(6	)			(6	)			(8	)			(6	)
Net charge-offs			326				(26	)			171				323				194				1,089				104				400
Balance at end of period		$	53,486			$	50,409			$	48,493			$	46,931			$	45,257			$	44,924			$	45,079			$	43,861
Asset Quality Ratios:
Non-performing loans to total loans			0.55	%			0.52	%			0.46	%			0.48	%			0.68	%			0.72	%			0.78	%			0.77	%
Non-performing assets to total assets			0.46	%			0.44	%			0.38	%			0.41	%			0.58	%			0.59	%			0.64	%			0.62	%
Allowance for loan losses to loans			0.81	%			0.79	%			0.78	%			0.77	%			1.05	%			1.07	%			1.09	%			1.10	%
Allowance for loan losses to non-performing loans			148.51	%			151.35	%			168.17	%			159.67	%			154.20	%			148.73	%			140.00	%			142.14	%
Annualized net charge-offs to average loans			0.02	%			0.00	%			0.01	%			0.02	%			0.02	%			0.10	%			0.01	%			0.04	%

Sandy Spring Bancorp, Inc. and Subsidiaries
CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES – UNAUDITED
		Three Months Ended December 31,
							2018											2017
										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		$	1,188,135			$	11,348			3.82	%		$	903,660			$	7,997			3.54	%
Residential construction loans			202,710				2,086			4.08				171,239				1,636			3.79
Total mortgage loans			1,390,845				13,434			3.86				1,074,899				9,633			3.58
Commercial AD&C loans			647,115				9,466			5.80				289,737				3,718			5.09
Commercial investor real estate loans			1,936,936				24,301			4.98				1,114,960				12,580			4.48
Commercial owner occupied real estate loans			1,196,506				14,661			4.86				842,642				10,258			4.83
Commercial business loans			751,769				10,447			5.51				454,330				5,264			4.60
Total commercial loans			4,532,326				58,875			5.15				2,701,669				31,820			4.67
Consumer loans			522,453				6,258			4.75				458,378				4,438			3.88
Total loans (2)			6,445,624				78,567			4.84				4,234,946				45,891			4.31
Loans held for sale			21,923				262			4.78				5,862				6			0.38
Taxable securities			728,560				5,471			3.00				489,020				3,428			2.80
Tax-exempt securities (3)			257,586				2,314			3.59				291,502				3,095			4.25
Total investment securities			986,146				7,785			3.16				780,522				6,523			3.34
Interest-bearing deposits with banks			40,864				222			2.16				36,904				121			1.30
Federal funds sold			796				3			1.51				2,841				9			1.21
Total interest-earning assets			7,495,353				86,839			4.60				5,061,075				52,550			4.13
Less:  allowance for loan losses			(51,302	)										(45,247	)
Cash and due from banks			64,866											50,489
Premises and equipment, net			62,219											54,741
Other assets			534,356											225,567
Total assets		$	8,105,492										$	5,346,625
Liabilities and Stockholders’ Equity
Interest-bearing demand deposits		$	695,762				226			0.13	%		$	625,502				135			0.09	%
Regular savings deposits			334,593				82			0.10				323,367				53			0.07
Money market savings deposits			1,601,050				5,691			1.41				1,027,365				1,698			0.66
Time deposits			1,424,503				6,557			1.83				693,545				2,158			1.23
Total interest-bearing deposits			4,055,908				12,556			1.23				2,669,779				4,044			0.60
Other borrowings			214,278				570			1.06				139,125				99			0.28
Advances from FHLB			922,620				5,851			2.52				610,765				3,041			1.98
Subordinated debentures			37,448				485			5.18				–				–			–
Total interest-bearing liabilities			5,230,254				19,462			1.48				3,419,669				7,184			0.83
Noninterest-bearing demand deposits			1,766,672											1,322,157
Other liabilities			63,188											41,293
Stockholders’ equity			1,045,378											563,506
Total liabilities and stockholders’ equity		$	8,105,492										$	5,346,625
Net interest income and spread						$	67,377			3.12	%						$	45,366			3.30	%
Less: tax-equivalent adjustment							1,232											1,874
Net interest income						$	66,145										$	43,492
Interest income/earning assets										4.60	%										4.13	%
Interest expense/earning assets										1.03											0.56
Net interest margin										3.57	%										3.57	%
(1) Tax-equivalent income has been adjusted using the combined marginal federal and state rate of 26.13% and 39.88% for 2018 and 2017 respectively. The annualized
taxable-equivalent adjustments utilized in the above table to compute yields aggregated to $1.2 million and $1.9 million in 2018 and 2017, respectively.
(2) Non-accrual loans are included in the average balances.
(3) Includes only investments that are exempt from federal taxes.

Sandy Spring Bancorp, Inc. and Subsidiaries
CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES – UNAUDITED
		Twelve Months Ended December 31,
							2018											2017
										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		$	1,115,869			$	41,628			3.73	%		$	873,278			$	30,648			3.51	%
Residential construction loans			208,741				8,289			3.97				167,664				6,292			3.75
Total mortgage loans			1,324,610				49,917			3.77				1,040,942				36,940			3.55
Commercial AD&C loans			609,844				35,058			5.75				298,563				14,844			4.97
Commercial investor real estate loans			1,938,633				96,125			4.96				1,040,871				46,558			4.47
Commercial owner occupied real estate loans			1,128,836				53,712			4.76				800,879				38,759			4.84
Commercial business loans			694,330				36,499			5.26				457,802				20,585			4.50
Total commercial loans			4,371,643				221,394			5.06				2,598,115				120,746			4.65
Consumer loans			529,249				23,568			4.45				458,931				16,934			3.72
Total loans (2)			6,225,502				294,879			4.74				4,097,988				174,620			4.26
Loans held for sale			28,225				1,245			4.41				6,855				279			4.06
Taxable securities			736,054				21,362			2.90				517,375				14,372			2.78
Tax-exempt securities (3)			281,962				9,976			3.54				296,226				12,550			4.24
Total investment securities			1,018,016				31,338			3.08				813,601				26,922			3.31
Interest-bearing deposits with banks			74,956				1,304			1.74				37,728				410			1.09
Federal funds sold			2,151				31			1.42				2,581				27			1.03
Total interest-earning assets			7,348,850				328,797			4.47				4,958,753				202,258			4.08
Less:  allowance for loan losses			(48,483	)										(44,557	)
Cash and due from banks			68,183											48,765
Premises and equipment, net			61,686											53,947
Other assets			535,278											223,012
Total assets		$	7,965,514										$	5,239,920
Liabilities and Stockholders’ Equity
Interest-bearing demand deposits		$	721,759				883			0.12	%		$	616,524				507			0.08	%
Regular savings deposits			376,207				570			0.15				322,856				216			0.07
Money market savings deposits			1,541,142				18,719			1.21				1,000,965				5,031			0.50
Time deposits			1,290,626				18,967			1.47				651,610				7,502			1.15
Total interest-bearing deposits			3,929,734				39,139			1.00				2,591,955				13,256			0.51
Other borrowings			172,888				1,169			0.68				133,356				337			0.25
Advances from FHLB			980,541				21,408			2.18				664,966				12,426			1.87
Subordinated debentures			37,501				1,921			5.13				411				12			2.94
Total interest-bearing liabilities			5,120,664				63,637			1.24				3,390,688				26,031			0.77
Noninterest-bearing demand deposits			1,759,867											1,257,231
Other liabilities			60,188											41,075
Stockholders’ equity			1,024,795											550,926
Total liabilities and stockholders’ equity		$	7,965,514										$	5,239,920
Net interest income and spread						$	265,160			3.23	%						$	176,227			3.31	%
Less: tax-equivalent adjustment							4,715											7,459
Net interest income						$	260,445										$	168,768
Interest income/earning assets										4.47	%										4.08	%
Interest expense/earning assets										0.87											0.53
Net interest margin										3.60	%										3.55	%
(1) Tax-equivalent income has been adjusted using the combined marginal federal and state rate of 26.13% and 39.88% for 2018 and 2017 respectively. The annualized
taxable-equivalent adjustments utilized in the above table to compute yields aggregated to $4.7 million and $7.5 million in 2018 and 2017, respectively.
(2) Non-accrual loans are included in the average balances.
(3) Includes only investments that are exempt from federal taxes.