Sandy Spring Bancorp Inc. reported Thursday that it lost $3.2 million, or 20 cents per share, in the fourth quarter, largely due an increase in money set aside for loan losses.

After paying out dividends to preferred shareholders, the company reported a $4.4 million loss to common shareholders. For the fourth quarter a year earlier, the Olney bank holding company lost $3.4 million, or 21 cents per share.

For the full year, Sandy Spring lost $14.8 million, compared to a $15.8 million profit in 2008. The company said it had reserved $76.8 million for loan losses last year, up from $33.2 million in 2008. Total assets last year grew by 10 percent to $3.6 billion, while total loans and leases fell by 8 percent to $2.3 billion largely because of a drop in mortgages and residential construction loans.