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Daniel J. Schrider, the President and CEO of the Sandy Spring Bancorp, Inc. (SASR) Interviews with the Wall Street Transcript

67 WALL STREET, New York - January 7, 2013 - The Wall Street Transcript has just published its Northeast and Mid-Atlantic Banks Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Pockets of Growth in Northeastern Banking - Heightened M&A Activity - Demutualization and MHC Conversion Opportunities - Fiscal Cliff Effects on Banking

Companies include: Sandy Spring Bancorp Inc. (SASR) and many others.

In the following excerpt from the Northeast and Mid-Atlantic Banks Report, the CEO of Sandy Springs Bank (SASR) discusses the outlook for his company for investors:

TWST: Please give us a history of Sandy Spring Bank.

Mr. Schrider: We were formed in 1868, so we are coming up on our 145th year anniversary. We were started as a small savings institution in the post-Civil War era in what was a small farming community at the time. We are an independent bank, and we have a very strong desire to keep Sandy Spring an independent.

TWST: How has the turmoil in the banking sector, particularly with the national banks, impacted you?

Mr. Schrider: When there is disruption with the larger banks, whether that involves consolidation in our market or whether there is an issue like this cycle we are working through now, we tend to be net beneficiaries. With big banks, a loan manager or a credit officer often lives in a different town than a client who is based here in our market. When there are disruptions with large banks, that often presents us with an opportunity to continue to manage and lend money for clients, but also to do it in a way that there is consistency and stability in our approach and to do it in the same market where our clients are based. Disruptions in the large banks tend to benefit us, and you see that most clearly in our deposit growth or in the shift in the mix of deposits over the course of the last few years.

TWST: Can you talk about that a little bit how has the deposit mix changed?

Mr. Schrider: Not only have our deposits grown over the course of the cycle, but we have become a much more significant holder of noninterest bearing deposits. We have had a fairly significant influx of small business deposits as well as retail clients. So it's not just growth from growth in balances, but it is growth in the number of new relationships of the bank. Many of these have come from larger institutions that have gone through some very significant challenges. Non-interest-bearing deposits for us typically averaged 18% to 20% of total deposits in the past, and right now between 27% and 28% of total deposits are non-interest-bearing. In this interest rate environment it doesn't manifest itself, but over time it will accrue to the benefit of our bottom line.

TWST: Tell us about your lending activity.

Mr. Schrider: To give you a little bit of a snapshot of our lending activity from a portfolio standpoint, about 60% of our outstanding loans are in commercial-related lending, which includes small and midsize businesses. Of the remaining 40%, we are probably about 30% residential-mortgage-related, and about 10% consumer lending. We have a mortgage division that is focused on both generating outstandings for a portfolio as well as generating sales for secondary market. We have decent gain on sales number, but at the same time, we have a significant portfolio of mortgages that we hold, nothing long term. We have a 3-1, 5-1 ARM type of portfolio, which tends to cater towards the retail client because the availability of long-term fixed rates some of the jumbos have. It has been hot and cold in the marketplace. We provide construction financing for those borrowers who want to build their dream home, and we provide the permanent mortgage which we will either keep in our portfolio, or we will sell it if we can provide a long-term fixed rate for them outside the bank...

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.