Sandy Spring Bancorp Reports 26% Increase in Net Operating Earnings

Apr 16, 2001, 01:00 ET from Sandy Spring Bancorp

    OLNEY, Md., April 16 /PRNewswire/ -- Sandy Spring Bancorp, (Nasdaq: SASR)
 the parent company of Sandy Spring National Bank of Maryland, today announced
 net operating earnings for the first quarter of 2001 of $5,744,134 ($ .59 per
 diluted share) as compared to $4,543,675 ($0.47 per diluted share) for the
 prior year period, an increase of 26%.
     Operating earnings exclude non-recurring income and expenses and the
 amortization of intangible assets. For the first quarter of 2001, non-
 recurring items consisted of a $130,153 pre-tax gain on the sale of
 investments ($ .01 per share) and $856,373 pre-tax expense ($ .05 per share)
 for amortization of intangible assets. For the first quarter of 2000, non-
 recurring items consisted primarily of a $1,501,535 pre-tax gain ($ .09 per
 share) on the sale of a building and $706,051 of pre-tax expense ($ .04) for
 amortization of intangible assets.
     Net income for the three-month period ending March 31, 2001 totaled
 $5,305,134 ($0.55 per diluted share) compared to $5,020,022 ($0.52 per diluted
 share), a 6% increase.
     Return on average stockholders' equity was 16.41% for the first three
 months in 2001, compared to 18.90% for the first three months of 2000, which
 included the $1.5 million gain on the building sale. Return on average assets
 for the first quarter of 2001 was 1.18%, compared to 1.27% for the first
 quarter of 2000.
     Comparing the first three months of 2001 and 2000, net interest income
 increased 11% due to consistent growth in the Bank's earning assets, which
 offset a decline in the net interest margin from 4.15% for the first three
 months in 2000 to 4.00% for the same period in 2001. The interest margin
 improved in the first quarter of 2001 compared to the fourth quarter of 2000,
 when it was 3.91%.
     Noninterest income, excluding the effect of non-recurring items, was $4.8
 million versus $3.2 million in 2000, an increase of 48% in the first three
 months of 2001 over 2000, primarily from growth in mortgage banking revenues,
 transaction based service fees and income from sales of investment products.
     Noninterest expenses, excluding the amortization of intangible assets,
 were $12.0 million as compared to $10.5 million in 2000, a 14% increase.  Much
 of this increase is due to higher incentive compensation costs, benefit costs
 and expenses of The Equipment Leasing Company acquired in the fourth quarter
 of 2000. The efficiency ratio, which measures the ratio of core expenses to
 core revenue, improved to 56.1% in the first quarter of 2001 versus 57.0% for
 the first quarter of 2000.
     Hunter R. Hollar, President and Chief Executive Officer, commented that he
 is pleased with the growth in loans and deposits, and particularly noninterest
 income, all of which were substantially in line with the company's plan. Mr.
 Hollar stated that the company's asset quality continues to be sound, as
 exhibited by an annualized level of net charge-offs to average loans and
 leases for the quarter of just .14% and a level of nonperforming assets to
 total assets at March 31, 2001 of .17%.
     Comparing March 31, 2001 balances to March 31, 2000, total assets were
 $1.91 billion versus $ 1.62 billion, a 17% increase. Total deposits grew 4% to
 $1.27 billion, while total loans and leases grew to $987 million from $856
 million, a 15% increase. During the same period, stockholders' equity
 increased to $138.0 million or 7.2% of total assets.
 
     About Sandy Spring Bancorp/Sandy Spring National Bank
     With just under $2 billion in assets, Sandy Spring Bancorp is the holding
 company for Sandy Spring National Bank of Maryland, the fourth largest locally
 owned commercial banking organization headquartered in Maryland.  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 National Bank traces its origin to 1868
 and offers a broad range of commercial banking, retail banking and trust
 services through 29 community offices and 46 ATMs located in Anne Arundel,
 Howard, Montgomery, and Prince George's counties in Maryland.  Visit Sandy
 Spring National Bank for our online banking products and services at
 http://www.ssnb.com .
 
     Forward-Looking Statements.  This press release contains forward-looking
 statements, including: statements of goals, intentions, and expectations;
 estimates of risks and of future costs and benefits; assessments of probable
 loan and lease losses and market risk; and statements of the ability to
 achieve financial and other goals.  These forward-looking statements are
 subject to significant uncertainties because they are based upon or are
 affected by: management's estimates and projections of future interest rates
 and other economic conditions; future laws and regulations; and a variety of
 other matters, which, by their nature, are subject to significant
 uncertainties.  Because of these uncertainties, the actual future results may
 differ materially from those indicated.  In addition, the company's past
 results of operations do not necessarily indicate its future results.
 
           FINANCIAL HIGHLIGHTS, STATEMENTS and TREND DATA TO FOLLOW
 
 
     Sandy Spring Bancorp, Inc. and Subsidiaries
     FINANCIAL HIGHLIGHTS
     (Dollars in thousands, except per share data)
 
                                                  Three Months Ended
                                                       March 31,           %
                                                  2001          2000     Change
     Profitability for the Period:
       Net Interest Income                      $15,541       $14,043     11
       Provision for Credit Losses                  492           300     64
       Noninterest Income                         4,922         4,722      4
       Noninterest Expenses                      12,872        11,230     15
       Income Before Income Taxes                 7,099         7,235     (2)
       Net Income                                 5,305         5,020      6
 
             Return on Average Assets              1.18%         1.27%
             Return on Average Equity             16.41%        18.90%
             Net Interest Margin                   4.00%         4.15%
             Efficiency Ratio                     56.12%        56.96%
 
     Per Share Data:
       Basic Net Income Per Share                 $0.56         $0.52      8
       Diluted Net Income Per Share                0.55          0.52      6
       Dividends Declared Per Share                0.21          0.20      5
       Book Value Per Share                       14.42         11.51     25
       Tangible Book Value Per Share              12.03          9.45     27
 
     At Quarter End:
       Assets                                $1,907,462    $1,623,863     17
       Deposits                               1,266,500     1,219,640      4
       Loans and Leases                         986,872       855,748     15
       Securities                               752,911       630,503     19
       Stockholders' Equity                     138,023       110,501     25
 
     Capital and Credit Quality Ratios:
       Average Equity to Average Assets            7.21%         6.70%
       Allowance for Credit Losses to
         Loans and Leases                          1.18%         0.98%
       Nonperforming Assets to Total
        Assets                                     0.17%         0.12%
       Annualized Net Charge-offs to
         Average Loans and Leases                  0.14%         0.06%
 
     Certain reclassifications of information previously reported have been
     made to conform with current presentation.
 
 
 
     Sandy Spring Bancorp, Inc. and Subsidiaries
     CONSOLIDATED BALANCE SHEETS
     (Dollars in thousands, except per share data)
                                                    March 31,      December 31,
                                                2001         2000        2000
     Assets
       Cash and due from banks                 $44,325     $37,752     $39,394
       Federal funds sold                        5,519      16,293       6,935
       Interest-bearing deposits with banks     13,524       1,904         507
       Residential mortgage loans held for
        sale                                    13,152         959       6,371
       Investments available-for-sale (at
        fair value)                            613,448     511,482     517,861
       Investments held-to-maturity - fair
        value of $125,207, $104,188 and
        $135,121, respectively                 122,534     108,934     134,879
       Other equity securities                  16,929      10,087      14,187
 
       Total loans and leases                  986,872     855,748     967,817
         Less:  Allowance for credit losses    (11,692)     (8,400)    (11,530)
           Net loans and leases                975,180     847,348     956,287
 
     Premises and equipment, net                31,247      31,528      31,282
     Accrued interest receivable                15,282      13,186      15,124
     Other real estate owned                       380         469         380
     Goodwill and other intangible assets       22,861      19,772      23,648
     Other assets                               33,081      24,149      26,146
             TOTAL ASSETS                   $1,907,462  $1,623,863  $1,773,001
 
     Liabilities
       Noninterest-bearing deposits           $239,857    $216,085    $243,339
       Interest-bearing deposits             1,026,643   1,003,555     999,588
         Total deposits                      1,266,500   1,219,640   1,242,927
 
       Short-term borrowings                   372,788     223,785     308,314
       Guaranteed preferred beneficial
        interests in the Company's
        subordinated debentures                 35,000      35,000      35,000
       Other long-term borrowings               79,025      29,456      49,054
       Accrued interest payable and other
        liabilities                             16,126       5,481      10,148
             TOTAL LIABILITIES               1,769,439   1,513,362   1,645,443
 
     Stockholders' Equity
       Common stock -- par value $1.00;
        shares authorized 15,000,000;
        shares issued and outstanding
        9,571,097, 9,598,853 and 9,552,672,
        respectively                             9,571       9,599       9,553
       Surplus                                  23,045      23,540      22,511
       Retained earnings                       100,940      89,711      97,641
       Accumulated other comprehensive
        income (loss)                            4,467     (12,349)     (2,147)
             TOTAL STOCKHOLDERS' EQUITY        138,023     110,501     127,558
             TOTAL LIABILITIES AND
              STOCKHOLDERS' EQUITY          $1,907,462  $1,623,863  $1,773,001
 
     Certain reclassifications of information previously reported have been
     made to conform with current presentation.
 
 
 
     Sandy Spring Bancorp, Inc. and Subsidiaries
     CONSOLIDATED STATEMENTS OF INCOME
     (In thousands, except per share data)             Three Months Ended
                                                            March 31,
                                                     2001              2000
     Interest Income:
       Interest and fees on loans and leases        $20,996           $17,611
       Interest on loans held for sale                  132                50
       Interest on deposits with banks                   20                48
       Interest and dividends on securities:
         Taxable                                      8,751             7,793
         Exempt from federal income taxes             1,913             1,892
       Interest on federal funds sold                   307               198
             TOTAL INTEREST INCOME                   32,119            27,592
     Interest Expense:
       Interest on deposits                          10,099             9,102
       Interest on short-term borrowings              4,459             3,127
       Interest on long-term borrowings               2,020             1,320
             TOTAL INTEREST EXPENSE                  16,578            13,549
     NET INTEREST INCOME                             15,541            14,043
     Provision for Credit Losses                        492               300
     NET INTEREST INCOME AFTER
       PROVISION FOR CREDIT LOSSES                   15,049            13,743
     Noninterest Income:
       Securities gains (losses)                        130                (8)
       Service charges on deposit accounts            1,747             1,311
       Gains on sales of mortgage loans                 521               169
       Trust department income                          435               409
       Gain on sale of premises                           0             1,502
       Other income                                   2,089             1,339
             TOTAL NONINTEREST INCOME                 4,922             4,722
     Noninterest Expenses:
       Salaries and employee benefits                 6,684             5,662
       Occupancy expense of premises                  1,237             1,172
       Equipment expenses                               816               769
       Marketing                                        317               357
       Outside data services                            656               636
       Intangible asset amortization                    856               706
       Other expenses                                 2,306             1,928
             TOTAL NONINTEREST EXPENSES              12,872            11,230
     Income before income taxes                       7,099             7,235
     Income tax expense                               1,794             2,215
     NET INCOME                                      $5,305            $5,020
     BASIC NET INCOME PER SHARE                       $0.56             $0.52
     DILUTED NET INCOME PER SHARE                      0.55              0.52
     DIVIDENDS DECLARED PER SHARE                      0.21              0.20
 
     Certain reclassifications of information previously reported have been
     made to conform with current presentation.
 
 
 
     Sandy Spring Bancorp, Inc. and Subsidiaries
     Historical Trends in Quarterly Financial Data
     (Dollars in Thousands, Except Per Share Data)                      2001
                                                                         Q1
     PROFITABILITY FOR THE QUARTER:
     Tax-equivalent Interest Income                                    $33,197
     Interest Expense                                                   16,578
         Tax-equivalent Net Interest
          Income                                                        16,619
         Tax Equivalent Adjustment                                       1,078
     Provision for Credit Losses                                           492
     Noninterest Income excluding
         Securities Gains (Losses) *                                     4,792
     Securities Gains (Losses)                                             130
     Noninterest Expenses **                                            12,872
     Income Before Taxes                                                 7,099
     Income Tax Expense                                                  1,794
     Net Income                                                          5,305
     FINANCIAL RATIOS:
         Return on Average Assets                                         1.18%
         Return on Average Equity                                        16.41%
         Net Interest Margin                                              4.00%
         Efficiency Ratio                                                56.12%
     PER SHARE DATA:
     Basic Net Income Per Share                                          $0.56
     Diluted Net Income Per Share                                         0.55
     Dividends Declared Per Share                                         0.21
     Book Value Per Share                                                14.42
     Tangible Book Value Per Share                                       12.03
     Non-operating Items of Income and
      Expense:
     Gain on Sale of Premises                                               $0
     Gain on Sale of Mortgage Servicing
      Rights                                                                 0
     Securities Gains (Losses)                                             130
     Early Retirement Window Option Costs                                    0
     Intangibles Amortization                                             (856)
         Net Non-operating Items before
          Taxes                                                           (726)
         Net Non-operating Items after
          Taxes                                                           (439)
     * Noninterest Income Breakdown:
     Service Charges on Deposit Accounts                                $1,747
     Trust Department Income                                               435
     Gains on Sales of Mortgage Loans                                      521
     Other Income                                                        2,089
         Total excluding Securities Gains
          (Losses)                                                       4,792
     ** Noninterest Expense Breakdown:
     Salaries and Employee Benefits                                     $6,684
     Occupancy Expense of Premises                                       1,237
     Equipment Expenses                                                    816
     Marketing                                                             317
     Outside Data Services                                                 656
     Intangible Asset Amortization                                         856
     Other Expenses                                                      2,306
         Total                                                          12,872
     BALANCE SHEETS (At Quarter End):
     Total Loans and Leases                                           $986,872
         Less: Allowance for Credit Losses                             (11,692)
             Net Loans and Leases                                      975,180
     Total Assets                                                    1,907,462
     Total Deposits                                                  1,266,500
     Total Stockholders' Equity                                        138,023
     Goodwill and Other Intangible Assets                               22,861
     QUARTERLY AVERAGE BALANCES:
     Total Loans & Leases                                             $982,263
     Total Earning Assets                                            1,685,699
     Total Securities                                                  679,388
     Total Assets                                                    1,819,232
     Total Stockholders' Equity                                        131,130
     Total Interest-bearing Liabilities                              1,451,589
     Noninterest-bearing Deposits                                      226,135
     Total Deposits                                                  1,228,448
     CAPITAL AND CREDIT QUALITY RATIOS:
     Average Equity to Average Assets                                     7.21%
     Allowance for Credit Losses to Loans
      and Leases                                                          1.18%
     Nonperforming Assets to Total Assets                                 0.17%
     Net Charge-offs to Average Loans and
      Leases                                                              0.14%
     MISCELLANEOUS DATA:
     Net Charge-offs                                                      $330
     Total Nonperforming Assets                                          3,153
 
 
     Sandy Spring Bancorp, Inc. and Subsidiaries
     Historical Trends in Quarterly Financial Data
     (Dollars in Thousands, Except Per Share Data)
                                                        2000
                                         Q4         Q3         Q2         Q1
     PROFITABILITY FOR THE QUARTER:
     Tax-equivalent Interest Income   $32,764    $31,770    $30,502    $28,814
     Interest Expense                  16,829     16,289     14,593     13,549
         Tax-equivalent Net
          Interest Income              15,935     15,481     15,909     15,265
         Tax Equivalent Adjustment      1,357      1,370      1,221      1,222
     Provision for Credit Losses          600        800        990        300
     Noninterest Income excluding
       Securities Gains (Losses)*       4,604      4,114      3,779      4,730
     Securities Gains (Losses)             12        218         55         (8)
     Noninterest Expenses **           11,750     12,565     12,032     11,230
     Income Before Taxes                6,844      5,078      5,500      7,235
     Income Tax Expense                 1,420        952      1,300      2,215
     Net Income                         5,424      4,126      4,200      5,020
     FINANCIAL RATIOS:
         Return on Average Assets        1.25%      0.97%      1.03%      1.27%
         Return on Average Equity       18.18%     14.53%     15.83%     18.90%
         Net Interest Margin             3.91%      3.87%      4.19%      4.15%
         Efficiency Ratio               55.16%     56.35%     57.43%     56.96%
     PER SHARE DATA:
     Basic Net Income Per Share         $0.57      $0.43      $0.44      $0.52
     Diluted Net Income Per Share        0.57       0.43       0.44       0.52
     Dividends Declared Per Share        0.21       0.20       0.20       0.20
     Book Value Per Share               13.35      12.10      11.59      11.51
     Tangible Book Value Per Share      10.88      10.18       9.59       9.45
     Non-operating Items of Income
      and Expense:
     Gain on Sale of Premises              $0         $0       ($32)    $1,502
     Gain on Sale of Mortgage
      Servicing Rights                    383          0          0          0
     Securities Gains (Losses)             12        218         55         (8)
     Early Retirement Window Option
      Costs                                74       (818)         0          0
     Intangibles Amortization            (706)      (706)      (706)      (706)
         Net Non-operating Items
          before Taxes                   (237)    (1,306)      (683)       788
         Net Non-operating Items
          after Taxes                    (143)      (789)      (413)       476
     * Noninterest Income Breakdown:
     Service Charges on Deposit
      Accounts                         $1,672     $1,524     $1,468     $1,311
     Trust Department Income              412        396        436        409
     Gains on Sales of Mortgage
      Loans                               347        335        207        169
     Other Income                       2,173      1,859      1,668      2,841
         Total excluding Securities
          Gains (Losses)                4,604      4,114      3,779      4,730
     ** Noninterest Expense Breakdown:
     Salaries and Employee Benefits    $6,025     $7,123     $6,090     $5,662
     Occupancy Expense of Premises      1,184      1,203      1,210      1,172
     Equipment Expenses                   806        813        816        769
     Marketing                            212        269        444        357
     Outside Data Services                576        582        580        636
     Intangible Asset Amortization        706        706        706        706
     Other Expenses                     2,241      1,869      2,186      1,928
         Total                         11,750     12,565     12,032     11,230
     BALANCE SHEETS (At Quarter End):
     Total Loans and Leases          $967,817   $907,444   $890,030   $855,748
         Less: Allowance for Credit
          Losses                      (11,530)    (9,697)    (9,184)    (8,400)
             Net Loans and Leases     956,287    897,747    880,846    847,348
     Total Assets                   1,773,001  1,710,425  1,691,562  1,623,863
     Total Deposits                 1,242,927  1,211,370  1,207,785  1,219,640
     Total Stockholders' Equity       127,558    115,431    110,893    110,501
     Goodwill and Other Intangible
      Assets                           23,648     18,360     19,066     19,772
     QUARTERLY AVERAGE BALANCES:
     Total Loans & Leases            $922,258   $897,650   $872,753   $839,661
     Total Earning Assets           1,621,543  1,590,430  1,528,244  1,478,837
     Total Securities                 656,515    654,924    641,489    624,116
     Total Assets                   1,727,414  1,697,274  1,638,208  1,593,785
     Total Stockholders' Equity       118,677    112,930    106,728    106,849
     Total Interest-bearing
      Liabilities                   1,380,340  1,371,148  1,319,008  1,286,939
     Noninterest-bearing Deposits     226,323    214,811    215,228    203,961
     Total Deposits                 1,223,189  1,210,371  1,207,961  1,180,392
     CAPITAL AND CREDIT QUALITY
      RATIOS:
     Average Equity to Average
      Assets                             6.87%      6.65%      6.51%      6.70%
     Allowance for Credit Losses to
      Loans and Leases                   1.19%      1.07%      1.03%      0.98%
     Nonperforming Assets to Total
      Assets                             0.16%      0.15%      0.16%      0.12%
     Net Charge-offs to Average
      Loans and Leases                   0.03%      0.13%      0.09%      0.06%
     MISCELLANEOUS DATA:
     Net Charge-offs                      $67       $287       $206       $131
     Total Nonperforming Assets         2,873      2,515      2,767      2,002
 
 
 
     Sandy Spring Bancorp, Inc. and Subsidiaries
     CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES
     (Dollars in thousands and tax-equivalent)
                                                Three Months Ended March 31,
                                                           2001
                                               Average    Annualized    Yield/
                                               Balances    Interest     Rate
     ASSETS
     Loans and Leases:
       Residential mortgage                    $269,990    $21,336      7.90%
       Residential construction                  52,191      4,708      9.02
       Commercial mortgage                      232,434     20,497      8.82
       Commercial construction                   60,476      5,726      9.47
       Commercial loans and leases              151,978     15,068      9.91
       Consumer                                 215,194     18,053      8.39
           Total loans and leases               982,263     85,388      8.69
     Securities                                 679,388     47,659      7.01
     Interest-bearing deposits with banks         2,551         82      3.21
     Federal funds sold                          21,497      1,228      5.71
           TOTAL EARNING ASSETS               1,685,699    134,357      7.97%
 
     Less:  allowance for credit losses         (11,615)
     Cash and due from banks                     40,335
     Premises and equipment, net                 31,416
     Other assets                                73,397
           Total Assets                      $1,819,232
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
     Interest-bearing deposits:
       Interest-bearing demand deposits        $150,085     $1,560      1.04%
       Regular savings deposits                 101,487      1,763      1.74
       Money market savings deposits            344,508     14,424      4.19
       Time deposits                            406,233     23,207      5.71
           Total interest-bearing deposits    1,002,313     40,954      4.09
     Borrowings                                 449,276     26,005      5.79
           TOTAL INTEREST-BEARING
            LIABILITIES                       1,451,589     66,959      4.61
           Net Interest Income and Spread                  $67,398      3.36%
 
     Noninterest-bearing demand deposits        226,135
     Other liabilities                           10,378
     Stockholder's equity                       131,130
           Total Liabilities and
            Stockholders' Equity             $1,819,232
     Interest income/earning assets                                     7.97%
     Interest expense/earning assets                                    3.97
         Net Interest Margin                                            4.00%
 
 
     Sandy Spring Bancorp, Inc. and Subsidiaries
     CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES
     (Dollars in thousands and tax-equivalent)
                                                 Three Months Ended March 31,
                                                             2000
                                                Average     Annualized   Yield/
                                                Balance      Interest    Rate
     ASSETS
     Loans and Leases:
       Residential mortgage                     $240,584     $18,334      7.62%
       Residential construction                   33,789       3,352      9.92
       Commercial mortgage                       240,314      21,174      8.81
       Commercial construction                    41,854       4,072      9.73
       Commercial loans and leases                92,393       8,329      9.01
       Consumer                                  190,727      15,667      8.21
           Total loans and leases                839,661      70,928      8.45
     Securities                                  624,116      43,847      7.03
     Interest-bearing deposits with banks          3,541         190      5.36
     Federal funds sold                           11,519         797      6.92
           TOTAL EARNING ASSETS                1,478,837     115,762      7.83%
 
     Less:  allowance for credit losses           (8,272)
     Cash and due from banks                      40,723
     Premises and equipment, net                  32,617
     Other assets                                 49,880
           Total Assets                       $1,593,785
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
     Interest-bearing deposits:
       Interest-bearing demand deposits         $156,421      $1,770      1.13%
       Regular savings deposits                  106,186       2,128      2.00
       Money market savings deposits             279,661      10,460      3.74
       Time deposits                             434,163      22,248      5.12
           Total interest-bearing deposits       976,431      36,606      3.75
     Borrowings                                  310,508      17,762      5.72
           TOTAL INTEREST-BEARING
            LIABILITIES                        1,286,939      54,368      4.22
           Net Interest Income and Spread                    $61,394      3.61%
 
     Noninterest-bearing demand deposits         203,961
     Other liabilities                            (3,964)
     Stockholder's equity                        106,849
           Total Liabilities and
            Stockholders' Equity              $1,593,785
     Interest income/earning assets                                       7.83%
     Interest expense/earning assets                                      3.68
         Net Interest Margin                                              4.15%
 
 

SOURCE Sandy Spring Bancorp
    OLNEY, Md., April 16 /PRNewswire/ -- Sandy Spring Bancorp, (Nasdaq: SASR)
 the parent company of Sandy Spring National Bank of Maryland, today announced
 net operating earnings for the first quarter of 2001 of $5,744,134 ($ .59 per
 diluted share) as compared to $4,543,675 ($0.47 per diluted share) for the
 prior year period, an increase of 26%.
     Operating earnings exclude non-recurring income and expenses and the
 amortization of intangible assets. For the first quarter of 2001, non-
 recurring items consisted of a $130,153 pre-tax gain on the sale of
 investments ($ .01 per share) and $856,373 pre-tax expense ($ .05 per share)
 for amortization of intangible assets. For the first quarter of 2000, non-
 recurring items consisted primarily of a $1,501,535 pre-tax gain ($ .09 per
 share) on the sale of a building and $706,051 of pre-tax expense ($ .04) for
 amortization of intangible assets.
     Net income for the three-month period ending March 31, 2001 totaled
 $5,305,134 ($0.55 per diluted share) compared to $5,020,022 ($0.52 per diluted
 share), a 6% increase.
     Return on average stockholders' equity was 16.41% for the first three
 months in 2001, compared to 18.90% for the first three months of 2000, which
 included the $1.5 million gain on the building sale. Return on average assets
 for the first quarter of 2001 was 1.18%, compared to 1.27% for the first
 quarter of 2000.
     Comparing the first three months of 2001 and 2000, net interest income
 increased 11% due to consistent growth in the Bank's earning assets, which
 offset a decline in the net interest margin from 4.15% for the first three
 months in 2000 to 4.00% for the same period in 2001. The interest margin
 improved in the first quarter of 2001 compared to the fourth quarter of 2000,
 when it was 3.91%.
     Noninterest income, excluding the effect of non-recurring items, was $4.8
 million versus $3.2 million in 2000, an increase of 48% in the first three
 months of 2001 over 2000, primarily from growth in mortgage banking revenues,
 transaction based service fees and income from sales of investment products.
     Noninterest expenses, excluding the amortization of intangible assets,
 were $12.0 million as compared to $10.5 million in 2000, a 14% increase.  Much
 of this increase is due to higher incentive compensation costs, benefit costs
 and expenses of The Equipment Leasing Company acquired in the fourth quarter
 of 2000. The efficiency ratio, which measures the ratio of core expenses to
 core revenue, improved to 56.1% in the first quarter of 2001 versus 57.0% for
 the first quarter of 2000.
     Hunter R. Hollar, President and Chief Executive Officer, commented that he
 is pleased with the growth in loans and deposits, and particularly noninterest
 income, all of which were substantially in line with the company's plan. Mr.
 Hollar stated that the company's asset quality continues to be sound, as
 exhibited by an annualized level of net charge-offs to average loans and
 leases for the quarter of just .14% and a level of nonperforming assets to
 total assets at March 31, 2001 of .17%.
     Comparing March 31, 2001 balances to March 31, 2000, total assets were
 $1.91 billion versus $ 1.62 billion, a 17% increase. Total deposits grew 4% to
 $1.27 billion, while total loans and leases grew to $987 million from $856
 million, a 15% increase. During the same period, stockholders' equity
 increased to $138.0 million or 7.2% of total assets.
 
     About Sandy Spring Bancorp/Sandy Spring National Bank
     With just under $2 billion in assets, Sandy Spring Bancorp is the holding
 company for Sandy Spring National Bank of Maryland, the fourth largest locally
 owned commercial banking organization headquartered in Maryland.  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 National Bank traces its origin to 1868
 and offers a broad range of commercial banking, retail banking and trust
 services through 29 community offices and 46 ATMs located in Anne Arundel,
 Howard, Montgomery, and Prince George's counties in Maryland.  Visit Sandy
 Spring National Bank for our online banking products and services at
 http://www.ssnb.com .
 
     Forward-Looking Statements.  This press release contains forward-looking
 statements, including: statements of goals, intentions, and expectations;
 estimates of risks and of future costs and benefits; assessments of probable
 loan and lease losses and market risk; and statements of the ability to
 achieve financial and other goals.  These forward-looking statements are
 subject to significant uncertainties because they are based upon or are
 affected by: management's estimates and projections of future interest rates
 and other economic conditions; future laws and regulations; and a variety of
 other matters, which, by their nature, are subject to significant
 uncertainties.  Because of these uncertainties, the actual future results may
 differ materially from those indicated.  In addition, the company's past
 results of operations do not necessarily indicate its future results.
 
           FINANCIAL HIGHLIGHTS, STATEMENTS and TREND DATA TO FOLLOW
 
 
     Sandy Spring Bancorp, Inc. and Subsidiaries
     FINANCIAL HIGHLIGHTS
     (Dollars in thousands, except per share data)
 
                                                  Three Months Ended
                                                       March 31,           %
                                                  2001          2000     Change
     Profitability for the Period:
       Net Interest Income                      $15,541       $14,043     11
       Provision for Credit Losses                  492           300     64
       Noninterest Income                         4,922         4,722      4
       Noninterest Expenses                      12,872        11,230     15
       Income Before Income Taxes                 7,099         7,235     (2)
       Net Income                                 5,305         5,020      6
 
             Return on Average Assets              1.18%         1.27%
             Return on Average Equity             16.41%        18.90%
             Net Interest Margin                   4.00%         4.15%
             Efficiency Ratio                     56.12%        56.96%
 
     Per Share Data:
       Basic Net Income Per Share                 $0.56         $0.52      8
       Diluted Net Income Per Share                0.55          0.52      6
       Dividends Declared Per Share                0.21          0.20      5
       Book Value Per Share                       14.42         11.51     25
       Tangible Book Value Per Share              12.03          9.45     27
 
     At Quarter End:
       Assets                                $1,907,462    $1,623,863     17
       Deposits                               1,266,500     1,219,640      4
       Loans and Leases                         986,872       855,748     15
       Securities                               752,911       630,503     19
       Stockholders' Equity                     138,023       110,501     25
 
     Capital and Credit Quality Ratios:
       Average Equity to Average Assets            7.21%         6.70%
       Allowance for Credit Losses to
         Loans and Leases                          1.18%         0.98%
       Nonperforming Assets to Total
        Assets                                     0.17%         0.12%
       Annualized Net Charge-offs to
         Average Loans and Leases                  0.14%         0.06%
 
     Certain reclassifications of information previously reported have been
     made to conform with current presentation.
 
 
 
     Sandy Spring Bancorp, Inc. and Subsidiaries
     CONSOLIDATED BALANCE SHEETS
     (Dollars in thousands, except per share data)
                                                    March 31,      December 31,
                                                2001         2000        2000
     Assets
       Cash and due from banks                 $44,325     $37,752     $39,394
       Federal funds sold                        5,519      16,293       6,935
       Interest-bearing deposits with banks     13,524       1,904         507
       Residential mortgage loans held for
        sale                                    13,152         959       6,371
       Investments available-for-sale (at
        fair value)                            613,448     511,482     517,861
       Investments held-to-maturity - fair
        value of $125,207, $104,188 and
        $135,121, respectively                 122,534     108,934     134,879
       Other equity securities                  16,929      10,087      14,187
 
       Total loans and leases                  986,872     855,748     967,817
         Less:  Allowance for credit losses    (11,692)     (8,400)    (11,530)
           Net loans and leases                975,180     847,348     956,287
 
     Premises and equipment, net                31,247      31,528      31,282
     Accrued interest receivable                15,282      13,186      15,124
     Other real estate owned                       380         469         380
     Goodwill and other intangible assets       22,861      19,772      23,648
     Other assets                               33,081      24,149      26,146
             TOTAL ASSETS                   $1,907,462  $1,623,863  $1,773,001
 
     Liabilities
       Noninterest-bearing deposits           $239,857    $216,085    $243,339
       Interest-bearing deposits             1,026,643   1,003,555     999,588
         Total deposits                      1,266,500   1,219,640   1,242,927
 
       Short-term borrowings                   372,788     223,785     308,314
       Guaranteed preferred beneficial
        interests in the Company's
        subordinated debentures                 35,000      35,000      35,000
       Other long-term borrowings               79,025      29,456      49,054
       Accrued interest payable and other
        liabilities                             16,126       5,481      10,148
             TOTAL LIABILITIES               1,769,439   1,513,362   1,645,443
 
     Stockholders' Equity
       Common stock -- par value $1.00;
        shares authorized 15,000,000;
        shares issued and outstanding
        9,571,097, 9,598,853 and 9,552,672,
        respectively                             9,571       9,599       9,553
       Surplus                                  23,045      23,540      22,511
       Retained earnings                       100,940      89,711      97,641
       Accumulated other comprehensive
        income (loss)                            4,467     (12,349)     (2,147)
             TOTAL STOCKHOLDERS' EQUITY        138,023     110,501     127,558
             TOTAL LIABILITIES AND
              STOCKHOLDERS' EQUITY          $1,907,462  $1,623,863  $1,773,001
 
     Certain reclassifications of information previously reported have been
     made to conform with current presentation.
 
 
 
     Sandy Spring Bancorp, Inc. and Subsidiaries
     CONSOLIDATED STATEMENTS OF INCOME
     (In thousands, except per share data)             Three Months Ended
                                                            March 31,
                                                     2001              2000
     Interest Income:
       Interest and fees on loans and leases        $20,996           $17,611
       Interest on loans held for sale                  132                50
       Interest on deposits with banks                   20                48
       Interest and dividends on securities:
         Taxable                                      8,751             7,793
         Exempt from federal income taxes             1,913             1,892
       Interest on federal funds sold                   307               198
             TOTAL INTEREST INCOME                   32,119            27,592
     Interest Expense:
       Interest on deposits                          10,099             9,102
       Interest on short-term borrowings              4,459             3,127
       Interest on long-term borrowings               2,020             1,320
             TOTAL INTEREST EXPENSE                  16,578            13,549
     NET INTEREST INCOME                             15,541            14,043
     Provision for Credit Losses                        492               300
     NET INTEREST INCOME AFTER
       PROVISION FOR CREDIT LOSSES                   15,049            13,743
     Noninterest Income:
       Securities gains (losses)                        130                (8)
       Service charges on deposit accounts            1,747             1,311
       Gains on sales of mortgage loans                 521               169
       Trust department income                          435               409
       Gain on sale of premises                           0             1,502
       Other income                                   2,089             1,339
             TOTAL NONINTEREST INCOME                 4,922             4,722
     Noninterest Expenses:
       Salaries and employee benefits                 6,684             5,662
       Occupancy expense of premises                  1,237             1,172
       Equipment expenses                               816               769
       Marketing                                        317               357
       Outside data services                            656               636
       Intangible asset amortization                    856               706
       Other expenses                                 2,306             1,928
             TOTAL NONINTEREST EXPENSES              12,872            11,230
     Income before income taxes                       7,099             7,235
     Income tax expense                               1,794             2,215
     NET INCOME                                      $5,305            $5,020
     BASIC NET INCOME PER SHARE                       $0.56             $0.52
     DILUTED NET INCOME PER SHARE                      0.55              0.52
     DIVIDENDS DECLARED PER SHARE                      0.21              0.20
 
     Certain reclassifications of information previously reported have been
     made to conform with current presentation.
 
 
 
     Sandy Spring Bancorp, Inc. and Subsidiaries
     Historical Trends in Quarterly Financial Data
     (Dollars in Thousands, Except Per Share Data)                      2001
                                                                         Q1
     PROFITABILITY FOR THE QUARTER:
     Tax-equivalent Interest Income                                    $33,197
     Interest Expense                                                   16,578
         Tax-equivalent Net Interest
          Income                                                        16,619
         Tax Equivalent Adjustment                                       1,078
     Provision for Credit Losses                                           492
     Noninterest Income excluding
         Securities Gains (Losses) *                                     4,792
     Securities Gains (Losses)                                             130
     Noninterest Expenses **                                            12,872
     Income Before Taxes                                                 7,099
     Income Tax Expense                                                  1,794
     Net Income                                                          5,305
     FINANCIAL RATIOS:
         Return on Average Assets                                         1.18%
         Return on Average Equity                                        16.41%
         Net Interest Margin                                              4.00%
         Efficiency Ratio                                                56.12%
     PER SHARE DATA:
     Basic Net Income Per Share                                          $0.56
     Diluted Net Income Per Share                                         0.55
     Dividends Declared Per Share                                         0.21
     Book Value Per Share                                                14.42
     Tangible Book Value Per Share                                       12.03
     Non-operating Items of Income and
      Expense:
     Gain on Sale of Premises                                               $0
     Gain on Sale of Mortgage Servicing
      Rights                                                                 0
     Securities Gains (Losses)                                             130
     Early Retirement Window Option Costs                                    0
     Intangibles Amortization                                             (856)
         Net Non-operating Items before
          Taxes                                                           (726)
         Net Non-operating Items after
          Taxes                                                           (439)
     * Noninterest Income Breakdown:
     Service Charges on Deposit Accounts                                $1,747
     Trust Department Income                                               435
     Gains on Sales of Mortgage Loans                                      521
     Other Income                                                        2,089
         Total excluding Securities Gains
          (Losses)                                                       4,792
     ** Noninterest Expense Breakdown:
     Salaries and Employee Benefits                                     $6,684
     Occupancy Expense of Premises                                       1,237
     Equipment Expenses                                                    816
     Marketing                                                             317
     Outside Data Services                                                 656
     Intangible Asset Amortization                                         856
     Other Expenses                                                      2,306
         Total                                                          12,872
     BALANCE SHEETS (At Quarter End):
     Total Loans and Leases                                           $986,872
         Less: Allowance for Credit Losses                             (11,692)
             Net Loans and Leases                                      975,180
     Total Assets                                                    1,907,462
     Total Deposits                                                  1,266,500
     Total Stockholders' Equity                                        138,023
     Goodwill and Other Intangible Assets                               22,861
     QUARTERLY AVERAGE BALANCES:
     Total Loans & Leases                                             $982,263
     Total Earning Assets                                            1,685,699
     Total Securities                                                  679,388
     Total Assets                                                    1,819,232
     Total Stockholders' Equity                                        131,130
     Total Interest-bearing Liabilities                              1,451,589
     Noninterest-bearing Deposits                                      226,135
     Total Deposits                                                  1,228,448
     CAPITAL AND CREDIT QUALITY RATIOS:
     Average Equity to Average Assets                                     7.21%
     Allowance for Credit Losses to Loans
      and Leases                                                          1.18%
     Nonperforming Assets to Total Assets                                 0.17%
     Net Charge-offs to Average Loans and
      Leases                                                              0.14%
     MISCELLANEOUS DATA:
     Net Charge-offs                                                      $330
     Total Nonperforming Assets                                          3,153
 
 
     Sandy Spring Bancorp, Inc. and Subsidiaries
     Historical Trends in Quarterly Financial Data
     (Dollars in Thousands, Except Per Share Data)
                                                        2000
                                         Q4         Q3         Q2         Q1
     PROFITABILITY FOR THE QUARTER:
     Tax-equivalent Interest Income   $32,764    $31,770    $30,502    $28,814
     Interest Expense                  16,829     16,289     14,593     13,549
         Tax-equivalent Net
          Interest Income              15,935     15,481     15,909     15,265
         Tax Equivalent Adjustment      1,357      1,370      1,221      1,222
     Provision for Credit Losses          600        800        990        300
     Noninterest Income excluding
       Securities Gains (Losses)*       4,604      4,114      3,779      4,730
     Securities Gains (Losses)             12        218         55         (8)
     Noninterest Expenses **           11,750     12,565     12,032     11,230
     Income Before Taxes                6,844      5,078      5,500      7,235
     Income Tax Expense                 1,420        952      1,300      2,215
     Net Income                         5,424      4,126      4,200      5,020
     FINANCIAL RATIOS:
         Return on Average Assets        1.25%      0.97%      1.03%      1.27%
         Return on Average Equity       18.18%     14.53%     15.83%     18.90%
         Net Interest Margin             3.91%      3.87%      4.19%      4.15%
         Efficiency Ratio               55.16%     56.35%     57.43%     56.96%
     PER SHARE DATA:
     Basic Net Income Per Share         $0.57      $0.43      $0.44      $0.52
     Diluted Net Income Per Share        0.57       0.43       0.44       0.52
     Dividends Declared Per Share        0.21       0.20       0.20       0.20
     Book Value Per Share               13.35      12.10      11.59      11.51
     Tangible Book Value Per Share      10.88      10.18       9.59       9.45
     Non-operating Items of Income
      and Expense:
     Gain on Sale of Premises              $0         $0       ($32)    $1,502
     Gain on Sale of Mortgage
      Servicing Rights                    383          0          0          0
     Securities Gains (Losses)             12        218         55         (8)
     Early Retirement Window Option
      Costs                                74       (818)         0          0
     Intangibles Amortization            (706)      (706)      (706)      (706)
         Net Non-operating Items
          before Taxes                   (237)    (1,306)      (683)       788
         Net Non-operating Items
          after Taxes                    (143)      (789)      (413)       476
     * Noninterest Income Breakdown:
     Service Charges on Deposit
      Accounts                         $1,672     $1,524     $1,468     $1,311
     Trust Department Income              412        396        436        409
     Gains on Sales of Mortgage
      Loans                               347        335        207        169
     Other Income                       2,173      1,859      1,668      2,841
         Total excluding Securities
          Gains (Losses)                4,604      4,114      3,779      4,730
     ** Noninterest Expense Breakdown:
     Salaries and Employee Benefits    $6,025     $7,123     $6,090     $5,662
     Occupancy Expense of Premises      1,184      1,203      1,210      1,172
     Equipment Expenses                   806        813        816        769
     Marketing                            212        269        444        357
     Outside Data Services                576        582        580        636
     Intangible Asset Amortization        706        706        706        706
     Other Expenses                     2,241      1,869      2,186      1,928
         Total                         11,750     12,565     12,032     11,230
     BALANCE SHEETS (At Quarter End):
     Total Loans and Leases          $967,817   $907,444   $890,030   $855,748
         Less: Allowance for Credit
          Losses                      (11,530)    (9,697)    (9,184)    (8,400)
             Net Loans and Leases     956,287    897,747    880,846    847,348
     Total Assets                   1,773,001  1,710,425  1,691,562  1,623,863
     Total Deposits                 1,242,927  1,211,370  1,207,785  1,219,640
     Total Stockholders' Equity       127,558    115,431    110,893    110,501
     Goodwill and Other Intangible
      Assets                           23,648     18,360     19,066     19,772
     QUARTERLY AVERAGE BALANCES:
     Total Loans & Leases            $922,258   $897,650   $872,753   $839,661
     Total Earning Assets           1,621,543  1,590,430  1,528,244  1,478,837
     Total Securities                 656,515    654,924    641,489    624,116
     Total Assets                   1,727,414  1,697,274  1,638,208  1,593,785
     Total Stockholders' Equity       118,677    112,930    106,728    106,849
     Total Interest-bearing
      Liabilities                   1,380,340  1,371,148  1,319,008  1,286,939
     Noninterest-bearing Deposits     226,323    214,811    215,228    203,961
     Total Deposits                 1,223,189  1,210,371  1,207,961  1,180,392
     CAPITAL AND CREDIT QUALITY
      RATIOS:
     Average Equity to Average
      Assets                             6.87%      6.65%      6.51%      6.70%
     Allowance for Credit Losses to
      Loans and Leases                   1.19%      1.07%      1.03%      0.98%
     Nonperforming Assets to Total
      Assets                             0.16%      0.15%      0.16%      0.12%
     Net Charge-offs to Average
      Loans and Leases                   0.03%      0.13%      0.09%      0.06%
     MISCELLANEOUS DATA:
     Net Charge-offs                      $67       $287       $206       $131
     Total Nonperforming Assets         2,873      2,515      2,767      2,002
 
 
 
     Sandy Spring Bancorp, Inc. and Subsidiaries
     CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES
     (Dollars in thousands and tax-equivalent)
                                                Three Months Ended March 31,
                                                           2001
                                               Average    Annualized    Yield/
                                               Balances    Interest     Rate
     ASSETS
     Loans and Leases:
       Residential mortgage                    $269,990    $21,336      7.90%
       Residential construction                  52,191      4,708      9.02
       Commercial mortgage                      232,434     20,497      8.82
       Commercial construction                   60,476      5,726      9.47
       Commercial loans and leases              151,978     15,068      9.91
       Consumer                                 215,194     18,053      8.39
           Total loans and leases               982,263     85,388      8.69
     Securities                                 679,388     47,659      7.01
     Interest-bearing deposits with banks         2,551         82      3.21
     Federal funds sold                          21,497      1,228      5.71
           TOTAL EARNING ASSETS               1,685,699    134,357      7.97%
 
     Less:  allowance for credit losses         (11,615)
     Cash and due from banks                     40,335
     Premises and equipment, net                 31,416
     Other assets                                73,397
           Total Assets                      $1,819,232
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
     Interest-bearing deposits:
       Interest-bearing demand deposits        $150,085     $1,560      1.04%
       Regular savings deposits                 101,487      1,763      1.74
       Money market savings deposits            344,508     14,424      4.19
       Time deposits                            406,233     23,207      5.71
           Total interest-bearing deposits    1,002,313     40,954      4.09
     Borrowings                                 449,276     26,005      5.79
           TOTAL INTEREST-BEARING
            LIABILITIES                       1,451,589     66,959      4.61
           Net Interest Income and Spread                  $67,398      3.36%
 
     Noninterest-bearing demand deposits        226,135
     Other liabilities                           10,378
     Stockholder's equity                       131,130
           Total Liabilities and
            Stockholders' Equity             $1,819,232
     Interest income/earning assets                                     7.97%
     Interest expense/earning assets                                    3.97
         Net Interest Margin                                            4.00%
 
 
     Sandy Spring Bancorp, Inc. and Subsidiaries
     CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES
     (Dollars in thousands and tax-equivalent)
                                                 Three Months Ended March 31,
                                                             2000
                                                Average     Annualized   Yield/
                                                Balance      Interest    Rate
     ASSETS
     Loans and Leases:
       Residential mortgage                     $240,584     $18,334      7.62%
       Residential construction                   33,789       3,352      9.92
       Commercial mortgage                       240,314      21,174      8.81
       Commercial construction                    41,854       4,072      9.73
       Commercial loans and leases                92,393       8,329      9.01
       Consumer                                  190,727      15,667      8.21
           Total loans and leases                839,661      70,928      8.45
     Securities                                  624,116      43,847      7.03
     Interest-bearing deposits with banks          3,541         190      5.36
     Federal funds sold                           11,519         797      6.92
           TOTAL EARNING ASSETS                1,478,837     115,762      7.83%
 
     Less:  allowance for credit losses           (8,272)
     Cash and due from banks                      40,723
     Premises and equipment, net                  32,617
     Other assets                                 49,880
           Total Assets                       $1,593,785
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
     Interest-bearing deposits:
       Interest-bearing demand deposits         $156,421      $1,770      1.13%
       Regular savings deposits                  106,186       2,128      2.00
       Money market savings deposits             279,661      10,460      3.74
       Time deposits                             434,163      22,248      5.12
           Total interest-bearing deposits       976,431      36,606      3.75
     Borrowings                                  310,508      17,762      5.72
           TOTAL INTEREST-BEARING
            LIABILITIES                        1,286,939      54,368      4.22
           Net Interest Income and Spread                    $61,394      3.61%
 
     Noninterest-bearing demand deposits         203,961
     Other liabilities                            (3,964)
     Stockholder's equity                        106,849
           Total Liabilities and
            Stockholders' Equity              $1,593,785
     Interest income/earning assets                                       7.83%
     Interest expense/earning assets                                      3.68
         Net Interest Margin                                              4.15%
 
 SOURCE  Sandy Spring Bancorp