Sandy Spring Bancorp (NASDAQ:SASR) Q3 2020 Earnings Conference Call October 22, 2020 2:00 PM ET Company Participants Daniel Schrider - President & Chief Executive Officer Aaron Kaslow - General Counsel Philip Mantua - Chief Financial Officer Conference Call Participants Steve Comery - G.Research Casey Whitman - Piper Sandler Stuart Lotz - KBW Brody Preston - Stephens, Inc. Eric Zwick - Boenning & Scattergood Operator Good day, and welcome to the Sandy Spring Bancorp, Inc. Earnings Conference Call and Webcas ...

3rd Quarter Supplemental Information October 22, 2020 y Spring Protecting Our Employees, Clients and Community: COVID-19 Response Current State More than 80% of non-branch personnel are continuing to telework. Branch lobbies are open to clients by appointment; a wider range of transactions are being processed through drive-thru facilities. Continue to closely follow CDC guidelines and comprehensive health and safety protocols. Return-to-Work Strategy Entered Phase 1 of the company's Return-to-Work Strategy ...

From Here. For Here. 1 1 From Here. For Here. Investor Presentation 2nd Quarter 2020 September 14, 2020 Forward Looking Statements and Non-GAAP Financial Information Forward-Looking Statements This presentation may contain forward-looking statements within the meaning of the securities laws that are based on various facts and derived utilizing important assumptions, present expectations, estimates and projections about Sandy Spring Bancorp, Inc. and its subsidiaries ("Sandy Spring", "SASR" or "the Company") ...

Financial Data and Key Metrics Changes - The company reported a net loss of $14.3 million or $0.31 per share for Q2 2020, compared to a net income of $28.3 million or $0.79 per diluted share for Q2 2019 and $10 million or $0.28 per diluted share for Q1 2020 [12] - The provision for credit losses was $58.7 million, driven by a negative change in the economic forecast and acquisition-related expenses [12][26] - Total assets grew to $13.3 billion from $8.4 billion year-over-year, with deposit growth of 58% and loan growth of 58% to $10.3 billion [14] Business Line Data and Key Metrics Changes - Fee income increased by 38% or $6.4 million from the prior quarter, with significant contributions from mortgage banking activities and wealth management income [17] - Non-interest expense grew by 95% or $41.6 million year-over-year, primarily due to merger and acquisition expenses [20] - The efficiency ratio improved to 43.85% from 51.71% in Q2 2019, reflecting strong revenue growth [22] Market Data and Key Metrics Changes - Non-performing loans increased to 77 basis points of total loans, totaling $79.9 million, compared to $37.7 million a year prior [23] - The allowance for credit losses was $163.5 million, representing 1.58% of outstanding loans [26] Company Strategy and Development Direction - The company is focused on long-term earnings growth from recent acquisitions and is on track for the full conversion of Revere systems [9] - The company emphasized its role as a community bank, particularly during the COVID-19 pandemic, by supporting local businesses through the Paycheck Protection Program [10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by the COVID-19 pandemic but expressed confidence in the company's ability to weather the current environment [9] - The company remains focused on employee and client safety while strategically moving forward [58] Other Important Information - The company donated $600,000 to COVID-19 relief efforts at local hospitals, reinforcing its commitment to community support [59] - The company received recognition as a top workplace and one of America's best banks, highlighting its strong employee engagement and customer service [57] Q&A Session Summary Question: What is the status of scheduled deferrals? - Management indicated that there are still a significant number of deferrals to work through, with early returns being positive [64] Question: What is the impact of PPP on margins? - Management noted that the ongoing initial marks will likely contribute about 5 to 6 basis points to future margins, with current guidance suggesting a margin range of 315 to 320 basis points [68] Question: How are expenses expected to trend moving forward? - Management expects a more normalized combined run rate by early 2021, with an efficiency ratio targeted in the high 40s to 50% range [77] Question: What is the outlook for non-performing loans? - Management clarified that the increase in non-performing loans was due to three large relationships, which are not necessarily COVID-related [78] Question: How is the company approaching dividend payouts? - Management stated there have been no specific conversations regarding dividend restrictions for community banks, and they will evaluate dividends based on core earnings [82]