BRYN MAWR BANK CORP - FORM 8-K - EX-99.1

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8-K - 8-K - BRYN MAWR BANK CORP	bmtc-20200116.htm

Exhibit 99.1


FOR RELEASE: IMMEDIATELY						Frank Leto, President, CEO
FOR MORE INFORMATION CONTACT:						610-581-4730
						Mike Harrington, CFO
						610-526-2466

Bryn Mawr Bank Corporation Reports

Fourth Quarter Net Income of $16.4 Million,

Organic Loan Growth of 7.6% over 2018,

Wealth Assets Under Management of $16.6 Billion,

Declares $0.26 Dividend

BRYN MAWR, Pa., January 16, 2020 - Bryn Mawr Bank Corporation (NASDAQ: BMTC) (the “Corporation”), parent of The Bryn Mawr Trust Company (the “Bank”), today reported net income of $16.4 million, or $0.81 diluted earnings per share for the three months ended December 31, 2019, as compared to net income of $16.4 million, or $0.81 diluted earnings per share, for the three months ended September 30, 2019, and $17.1 million, or $0.84 diluted earnings per share, for the three months ended December 31, 2018.

As detailed in the appendix to this earnings release, management calculates core net income, a non-GAAP measure, which excludes income tax charges incurred in connection with the Tax Cuts and Jobs Act, due diligence and merger-related expenses, one-time costs associated with our voluntary Years of Service Incentive Program, and other non-core income and expense items. There were no meaningful non-core income or expense items for the three months ended December 31, 2019, September 30, 2019, or December 31, 2018. A reconciliation of core net income and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release.

“We are excited to report a strong conclusion to 2019,” commented Frank Leto, President and Chief Executive Officer. “We believe loan growth of 4.2% over the prior quarter and 7.6% over the prior year, along with strong fee income from both wealth and capital markets are evidence of the continued success of our One BMT market strategy” Mr. Leto continued, “As we look to 2020 and what is shaping up to be a very challenging operating environment, our entire organization is focused on realizing the value of the investments in talent and technology we have made over the last few years to remain a market leader while controlling future increases in expenses until such time as the environment improves,” Mr. Leto concluded.

On January 16, 2020, the Board of Directors of the Corporation declared a quarterly dividend of $0.26 per share, payable March 1, 2020 to shareholders of record as of January 31, 2020.

SIGNIFICANT ITEMS OF NOTE

Results of Operations – Fourth Quarter 2019 Compared to Third Quarter 2019

•Net income for the three months ended December 31, 2019 was $16.4 million, relatively unchanged as compared to net income of $16.4 million for the three months ended September 30, 2019. Net interest income for the three months ended December 31, 2019 was $36.0 million, a decrease of $1.4 million over the linked quarter. The provision for loan and lease losses (the “Provision”) for the three months ended December 31, 2019 increased $1.3 million as compared to the third quarter of 2019. Total noninterest income increased $3.8 million, total noninterest expense increased $1.3 million, and income tax expense decreased $200 thousand for the three months ended December 31, 2019, as compared to the three months ended September 30, 2019.

•Net interest income for the three months ended December 31, 2019 was $36.0 million, a decrease of $1.4 million over the linked quarter. Tax-equivalent net interest income for the three months ended December 31, 2019 was $36.1 million, a decrease of $1.4 million over the linked quarter. Tax-equivalent net interest income for the fourth quarter of 2019 was positively impacted by the accretion of purchase accounting fair value marks of $1.1 million as compared to $1.6 million for the linked quarter. Excluding the effects of these purchase accounting fair value marks, the adjusted tax-equivalent net interest income for the three months ended December 31, 2019 was $35.0 million, a decrease of $931 thousand over the linked quarter. A reconciliation of this and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release. Items contributing to the decrease in tax-equivalent net interest income adjusted for purchase accounting included decreases of $1.8 million and $434 thousand in tax-equivalent interest and fees earned on loans and leases and tax-equivalent interest income on available for sale investment securities, respectively, partially offset by decreases of $853 thousand and $382 thousand in interest paid on deposits and interest expense on short-term borrowings, respectively, for the three months ended December 31, 2019 as compared to the linked quarter ended September 30, 2019.

Tax-equivalent interest and fees earned on loans and leases for the three months ended December 31, 2019 decreased $2.3 million as compared to the linked quarter. The decrease was primarily due to a 35 basis point decrease in tax-equivalent yield on average loans and leases for the three months ended December 31, 2019 as compared to the linked quarter. The decrease in tax-equivalent yield was primarily due to the decreases in prime loan rates observed during the second half of the year driven by the current interest rate environment, which affected new originations and refinancing, as well as existing adjustable rate loans. The effect of the decrease in tax-equivalent yield was partially offset by an increase of $65.7 million in average loans and leases for the three months ended December 31, 2019 as compared to the linked quarter.

Tax-equivalent interest income on available for sale investment securities for the three months ended December 31, 2019 decreased $434 thousand as compared to the linked quarter. Average available for sale investment securities decreased $29.4 million over the linked quarter and experienced an 18 basis point decrease in tax-equivalent yield.

Interest expense on deposits for the three months ended December 31, 2019 decreased $836 thousand over the linked quarter. The decrease was primarily due to a 13 basis point decrease in tax-equivalent yield on average interest-bearing deposits for the three months ended December 31, 2019 as compared to the linked quarter. The effect of the decrease in tax-equivalent yield was partially offset by an increase of $22.8 million in average interest-bearing deposits for the three months ended December 31, 2019 as compared to the linked quarter.

Interest expense on short-term borrowings for the three months ended December 31, 2019 decreased $382 thousand over the linked quarter. Average short-term borrowings decreased $48.3 million coupled with a 38 basis point decrease in the rate paid as compared to the linked quarter.

•The tax-equivalent net interest margin was 3.36% for the three months ended December 31, 2019 as compared to 3.54% for the linked quarter. Adjusting for the impact of the accretion of purchase accounting fair value marks, the adjusted tax-equivalent net interest margin was 3.26% for the three months ended December 31, 2019 as compared to 3.39% for the linked quarter. A reconciliation of this and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release.

•Noninterest income of $23.3 million for the three months ended December 31, 2019 represented a $3.8 million increase over the linked quarter. The increase was primarily due to increases of $3.3 million and $846 thousand in capital markets revenue and fees for wealth management services, respectively. Partially offsetting these increases were decreases of $176 thousand and $121 thousand in insurance commissions and other operating income, respectively. The increase in capital markets revenue was primarily due to increased volume and size of interest rate swap transactions with commercial loan customers for the three months ended December 31, 2019 as compared to the linked quarter.

•Noninterest expense of $36.4 million for the three months ended December 31, 2019 represented a $1.3 million increase over the linked quarter. Contributing to the increase were increases of $902 thousand, $710 thousand, $273 thousand, $198 thousand, and $140 thousand in salaries and wages, professional fees, other operating expense, occupancy and bank premises expense, and data processing expense, respectively. Partially offsetting these increases were decreases of $603 thousand and $472 thousand in employee benefits and Pennsylvania bank shares tax expense, respectively.

•The Provision increased $1.3 million for the three months ended December 31, 2019 to $2.2 million, as compared to $919 thousand for the third quarter of 2019. Net loan and lease charge-offs for the fourth quarter of 2019 totaled $400 thousand as compared to $1.3 million for the third quarter of 2019. The decrease in net charge-offs was largely the result of a $1.1 million recovery, during the fourth quarter of 2019, on a commercial mortgage loan which had been partially charged off in the first quarter of 2019. The effect of the $924 thousand decrease in net charge-offs on a linked quarter basis was partially offset by the increase in Provision recorded for originated loan growth during the fourth quarter of 2019. Originated loans and leases increased by $183.0 million, or 5.8%, during the fourth quarter of 2019, as compared to an increase of $48.9 million, or 1.6%, during the third quarter of 2019.

•The effective tax rate for the fourth quarter of 2019 decreased to 20.41% as compared to 21.20% for the third quarter of 2019.

Results of Operations – Fourth Quarter 2019 Compared to Fourth Quarter 2018

•Net income for the three months ended December 31, 2019 was $16.4 million, or $0.81 diluted earnings per share, as compared to net income of $17.1 million, or diluted earnings per share of $0.84 for the same period in 2018. Net interest income for the three months ended December 31, 2019 was $36.0 million, a decrease of $2.0 million as compared to the same period in 2018. The Provision for the three months ended December 31, 2019 decreased $137 thousand as compared to the same period in 2018. Total noninterest income increased $5.2 million, total noninterest expense increased $1.6 million, and income tax expense increased $2.5 million for the three months ended December 31, 2019 as compared to the same period in 2018.

•Net interest income for the three months ended December 31, 2019 was $36.0 million, a decrease of $2.0 million as compared to the same period in 2018. Tax-equivalent net interest income for the three months ended December 31, 2019 was $36.1 million, a decrease of $2.0 million as compared to the same period in 2018. Tax-equivalent net interest income for the fourth quarter of 2019 was positively impacted by the accretion of purchase accounting fair value marks of $1.1 million as compared to $2.7 million for the same period in 2018. Excluding the effects of these purchase accounting fair value marks, the adjusted tax-equivalent net interest income for the three months ended December 31, 2019 was $35.0 million, a decrease of $406 thousand as compared to the same period in 2018. A reconciliation of this and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release. The decrease in adjustment for purchase accounting was primarily due to an increase of $1.5 million in interest paid on deposits for the three months ended December 31, 2019 as compared to the same period in 2018, partially offset by increases of $517 thousand and $222 thousand in tax-equivalent interest and fees earned on loans and leases and tax-equivalent interest earned on available for sale investment securities, respectively, for the three months ended December 31, 2019 as compared to the same period in 2018.

Tax-equivalent interest and fees earned on loans and leases for the three months ended December 31, 2019 decreased $948 thousand as compared to the same period in 2018. The decrease was primarily due to a 39 basis point decrease in tax-equivalent yield on average loans and leases for the three months ended December 31, 2019 as compared to the same period in 2018. The decrease in tax-equivalent yield was primarily due to the decreases in prime loan rates observed during the second half of the year, driven by the current interest rate environment, which affected yields on new originations and refinancing, as well as existing adjustable rate loans. The effect of the decrease in tax-equivalent yield was partially offset by an increase of $199.1 million in average loans and leases for the three months ended December 31, 2019 as compared to same period in 2018.

Tax-equivalent interest income on available for sale investment securities for the three months ended December 31, 2019 increased $222 thousand as compared to the same period in 2018. Average available for sale investment securities increased by $34.9 million and experienced a one basis point tax-equivalent yield increase, in each case as compared to the same period in 2018.

Interest expense on short-term borrowings and long-term FHLB advances for the three months ended December 31, 2019 decreased $126 thousand and $52 thousand, respectively, as compared to the same period in 2018. Average short-term borrowings decreased $6.8 million coupled with a 29 basis point decrease in the rate paid for the three months ended December 31, 2019 as compared to the same period in 2018. Average long-term FHLB advances decreased $13.9 million, offset by a 12 basis point increase in the rate paid for the three months ended December 31, 2019 as compared to the same period in 2018.

Interest expense on deposits for the three months ended December 31, 2019 increased $1.6 million as compared to the same period in 2018. The increase was primarily due to a 16 basis point increase in the rate paid on deposits coupled with a $196.6 million increase in average interest-bearing deposits for the three months ended December 31, 2019 as compared to the same period in 2018.

•The tax-equivalent net interest margin was 3.36% for the three months ended December 31, 2019 as compared to 3.79% for the same period in 2018. Adjusting for the impacts of the accretion of purchase accounting fair value marks, the adjusted tax-equivalent net interest margin was 3.26% and 3.52% for three months ended December 31, 2019 and 2018, respectively. The main drivers for the decrease in the adjusted tax-equivalent net interest margin were the rate and volume changes of interest-bearing assets and liabilities as discussed in the above bullet points. A reconciliation of this and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release.

•Noninterest income of $23.3 million for the three months ended December 31, 2019 represented a $5.2 million increase over the same period in 2018. The increase was primarily due to increases of $4.1 million, $1.1 million, $655 thousand, and $207 thousand in capital markets revenue, other operating income, fees for wealth management services, and insurance commissions, respectively, partially offset by a decrease of $1.0 million in net gain on sale of loans. The increase in capital markets revenue was primarily due to increased volume and size of interest rate swap transactions with commercial loan customers for the three months ended December 31, 2019 as compared to the same period in 2018.

•Noninterest expense of $36.4 million for the three months ended December 31, 2019 represented a $1.6 million increase over the same period in 2018. Contributing to the increase were increases of $1.0 million, $746 thousand, $228 thousand, and $177 thousand in other operating expense, salaries and wages, professional fees, and data processing expense, respectively. Partially offsetting these increases were decreases of $332 thousand and $292 thousand in Pennsylvania bank shares tax expense and employee benefits, respectively.

•The Provision decreased by $137 thousand for the three months ended December 31, 2019 to $2.2 million, as compared to $2.4 million for the same period in 2018. The decrease in Provision was related to the reduced level of net loan and lease charge-offs during the fourth quarter of 2019, which totaled $400 thousand, as compared to $1.6 million for the same period in 2018. The decrease in net charge-offs on a year-over-year basis was largely the result of a $1.1 million recovery, during the fourth quarter of 2019, on a commercial mortgage loan which had been partially charged off in the first quarter of 2019. The effect of the decreased level of net charge-offs was partially offset by the increase in Provision recorded for originated loan growth during the fourth quarter of 2019. Originated loans and leases increased by $183.0 million, or 5.8%, during the fourth quarter of 2019, as compared to an increase of $133.1 million, or 4.8%, during the same period in 2018.

•The effective tax rate for the fourth quarter of 2019 increased as compared to the fourth quarter of 2018. The increase in the effective tax rate was primarily due to a $2.6 million tax benefit recorded in the fourth quarter of 2018 for certain discrete items included on our 2017 tax return which was filed during the fourth quarter of 2018. The effective tax rate for the years ended December 31, 2019 and December 31, 2018, excluding discrete income tax benefits, was 21.06% and 21.66%, respectively.

Financial Condition – December 31, 2019 Compared to December 31, 2018

•Total assets as of December 31, 2019 were $5.26 billion, an increase of $610.8 million from December 31, 2018. The increase is primarily due to the increases in portfolio loans and leases and available for sale investment securities discussed in the bullet points below, as well as $41.0 million of operating lease right-of-use assets as of December 31, 2019 included on the balance sheet as a result of a required accounting pronouncement adopted in the first quarter of 2019.

•Available for sale investment securities as of December 31, 2019 totaled $1.01 billion, an increase of $268.5 million from December 31, 2018. The increase was primarily due to the purchase of $500.0 million of short-term U.S. Treasury securities included on the balance sheet as of December 31, 2019, an increase of $300.0 million as compared to $200.0 million as of December 31, 2018. This increase in U.S. Treasury securities coupled with a $76.1 million increase in mortgage-backed securities, respectively, were partially offset by decreases of $93.8 million, $7.4 million, and $6.0 million in U.S. government and agency securities, collateralized mortgage obligations, and state & political subdivision securities, respectively.

•Total portfolio loans and leases of $3.69 billion as of December 31, 2019 increased by $262.2 million from December 31, 2018, an increase of 7.6%. Increases of $256.0 million, $20.5 million, $13.7 million, and $10.3 million in commercial mortgages, leases, commercial and industrial loans, and consumer loans, respectively, were offset by decreases of $21.2 million, $12.7 million, and $4.5 million in construction loans, home equity loans and lines, and residential mortgages, respectively.

•The allowance for loan and lease losses (the “Allowance”) as of December 31, 2019 was $22.6 million, or 0.61% of portfolio loans and leases, as compared to $19.4 million, or 0.57% of portfolio loans and leases, as of December 31, 2018. In addition to the ratio of Allowance to portfolio loans and leases, management also calculates two non-GAAP measures: the Allowance for originated loans and leases as a percentage of originated loans and leases, which was 0.68% as of December 31, 2019, as compared to 0.67% as of December 31, 2018, and the Allowance plus the remaining loan mark as a percentage of gross loans, which was 0.91% as of December 31, 2019, as compared to 1.08% as of December 31, 2018. A reconciliation of these and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release.

On January 1, 2020, the Corporation adopted ASU 2016-13 (Topic 326), Measurement of Credit Losses on Financial Instruments, or “CECL.” Management is finalizing certain key assumptions to be used in our CECL model and methodologies, however we expect an initial increase to the allowance for credit losses for loans and leases (“ACL”) not to exceed 130% of the December 31, 2019 Allowance, or an incremental increase to the December 31, 2019 Allowance of approximately $6.8 million. When finalized, this one-time increase to the ACL as a result of the adoption of the CECL model will be recorded, net of tax, as an adjustment to retained earnings effective January 1, 2020. This estimate is subject to change based on continuing refinement and validation of the model and methodologies as well as changes in forecasted macroeconomic conditions. Ongoing impacts of the CECL methodology will be dependent upon changes in economic conditions and forecasts, originated and acquired loan and lease portfolio composition, portfolio duration, and other factors.

•Deposits of $3.84 billion as of December 31, 2019 increased $243.2 million from December 31, 2018. Increases of $280.2 million, $243.8 million, and $122.8 million in interest-bearing demand accounts, money market accounts, and wholesale non-maturity deposits, respectively, were offset by decreases of $236.0 million, $137.6 million, $26.6 million, and $3.4 million in wholesale time deposits, retail time deposits, savings accounts, and noninterest bearing deposits, respectively.

•Borrowings of $665.9 million as of December 31, 2019, which include short-term borrowings, long-term FHLB advances, subordinated notes and junior subordinated debentures increased $238.1 million from December 31, 2018, primarily due to an increase of $240.9 million in short-term borrowings.

•Wealth assets under management, administration, supervision and brokerage (“wealth assets”) totaled $16.55 billion as of December 31, 2019, an increase of $3.12 billion from December 31, 2018. Wealth assets consisted of $9.57 billion of wealth assets where fees are set at fixed amounts and $6.98 billion of wealth assets where fees are predominantly determined based on the market value of the assets held in their accounts as of December 31, 2019, an increase of $1.91 billion and $1.21 billion, respectively, from December 31, 2018.

•The capital ratios for the Bank and the Corporation, as of December 31, 2019, as shown in the attached tables, indicate regulatory capital levels in excess of the regulatory minimums and the levels necessary for the Bank to be considered “well capitalized.”

FORWARD LOOKING STATEMENTS AND SAFE HARBOR

This press release contains statements which, to the extent that they are not recitations of historical fact may constitute forward-looking statements for purposes of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. Such forward-looking statements may include financial and other projections as well as statements regarding the Corporation’s future plans, objectives, performance, revenues, growth, profits, operating expenses or the Corporation’s underlying assumptions. The words “may,” “would,” “should,” “could,” “will,” “likely,” “possibly,” “expect,” “anticipate,” “intend,” “indicate,” “estimate,” “target,” “potentially,” “promising,” “probably,” “outlook,” “predict,” “contemplate,” “continue,” “plan,” “forecast,” “project,” “are optimistic,” “are looking,” “are looking forward” and “believe” or other similar words and phrases may identify forward-looking statements. Persons reading this press release are cautioned that such statements are only predictions, and that the Corporation’s actual future results or performance may be materially different.

Such forward-looking statements involve known and unknown risks and uncertainties. A number of factors, many of which are beyond the Corporation's control, could cause our actual results, events or developments, or industry results, to be materially different from any future results, events or developments expressed, implied or anticipated by such forward-looking statements, and so our business and financial condition and results of operations could be materially and adversely affected. Such factors include, among others, our need for capital, our ability to control operating costs and expenses, and to manage loan and lease delinquency rates; the credit risks of lending activities and overall quality of the composition of our loan, lease and securities portfolio; the impact of economic conditions, consumer and business spending habits, and real estate market conditions on our business and in our market area; changes in the levels of general interest rates, deposit interest rates, or net interest margin and funding sources; changes in banking regulations and policies and the possibility that any banking agency approvals we might require for certain activities will not be obtained in a timely manner or at all or will be conditioned in a manner that would impair our ability to implement our business plans; changes in accounting policies and practices or or accounting standards, including ASU 2016-13 (Topic 326), “Measurement of Credit Losses on Financial Instruments,” commonly referenced as the Current Expected Credit Loss (“CECL”) model, which will change how we estimate credit losses and may increase the required level of our allowance for credit losses after adoption on January 1, 2020; unanticipated regulatory or legal proceedings, outcomes of litigation or other contingencies; cybersecurity events; the inability of key third-party providers to perform their obligations to us; our ability to attract and retain key personnel; competition in our marketplace; war or terrorist activities; material differences in the actual financial results, cost savings and revenue enhancements associated with our acquisitions; uncertainty regarding the future of LIBOR; and other factors as described in our securities filings. All forward-looking statements and information set forth herein are based on management’s current beliefs and assumptions as of the date hereof and speak only as of the date they are made. The Corporation does not undertake to update forward-looking statements.

For a complete discussion of the assumptions, risks and uncertainties related to our business, you are encouraged to review our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K, as updated by our quarterly or other reports subsequently filed with the U.S. Securities and Exchange Commission.

# # # #

Bryn Mawr Bank Corporation

Summary Financial Information (unaudited)

(dollars in thousands, except per share data)


	As of or For the Three Months Ended												For the Twelve Months Ended
	December 31, 2019		September 30, 2019		June 30, 2019		March 31, 2019		December 31, 2018		December 31, 2019	December 31, 2018
Consolidated Balance Sheet (selected items)
Interest-bearing deposits with banks	$	42,328	$	86,158	$	49,643	$	29,449	$	34,357
Investment securities	1,027,182		625,452		606,844		578,629		753,628
Loans held for sale	4,249		5,767		6,333		2,884		1,749
Portfolio loans and leases	3,689,313		3,540,747		3,534,665		3,523,514		3,427,154
Allowance for loan and lease losses ("ALLL")	(22,602)		(20,777)		(21,182)		(20,616)		(19,426)
Goodwill and other intangible assets	203,143		204,096		205,050		206,006		207,467
Total assets	5,263,259		4,828,641		4,736,565		4,631,993		4,652,485
Deposits - interest-bearing	2,944,072		2,794,079		2,691,502		2,755,307		2,697,468
Deposits - non-interest-bearing	898,173		904,409		940,911		882,310		901,619
Short-term borrowings	493,219		203,471		207,828		124,214		252,367
Long-term FHLB advances	52,269		44,735		47,941		55,407		55,374
Subordinated notes	98,705		98,660		98,616		98,571		98,526
Jr. subordinated debentures	21,753		21,709		21,665		21,622		21,580
Total liabilities	4,651,032		4,227,706		4,146,410		4,056,886		4,087,781
Total shareholders' equity	612,227		600,935		590,155		575,107		564,704
Average Balance Sheet (selected items)
Interest-bearing deposits with banks	66,060		48,597		37,843		32,742		38,957		46,408	37,550
Investment securities	593,289		622,336		587,518		569,915		554,265		593,409	546,549
Loans held for sale	4,160		4,375		3,353		1,214		2,005		3,286	3,551
Portfolio loans and leases	3,594,449		3,528,548		3,520,866		3,476,525		3,397,479		3,530,416	3,352,744
Total interest-earning assets	4,257,958		4,203,856		4,149,580		4,080,396		3,992,706		4,173,519	3,940,394
Goodwill and intangible assets	203,663		204,637		205,593		206,716		207,893		205,143	207,343
Total assets	4,775,407		4,760,074		4,651,625		4,545,129		4,413,000		4,683,901	4,352,122
Deposits - interest-bearing	2,799,050		2,776,226		2,794,854		2,674,194		2,602,412		2,761,463	2,506,557
Short-term borrowings	121,612		169,985		68,529		157,652		128,429		129,457	178,582
Long-term FHLB advances	53,443		45,698		52,397		55,385		67,363		51,709	93,503
Subordinated notes	98,681		98,634		98,587		98,542		98,497		98,612	98,462
Jr. subordinated debentures	21,726		21,680		21,637		21,595		21,553		21,660	21,491
Total interest-bearing liabilities	3,094,512		3,112,223		3,036,004		3,007,368		2,918,254		3,062,901	2,898,595
Total liabilities	4,168,899		4,164,763		4,070,160		3,973,043		3,856,694		4,094,946	3,810,537
Total shareholders' equity	606,508		595,311		581,465		572,086		556,306		588,955	541,585

Bryn Mawr Bank Corporation

Summary Financial Information (unaudited)

(dollars in thousands, except per share data)


	As of or For the Three Months Ended																					For the Twelve Months Ended
	December 31, 2019			September 30, 2019			June 30, 2019			March 31, 2019			December 31, 2018			December 31, 2019			December 31, 2018
Income Statement
Net interest income	$	35,985		$	37,398		$	36,611		$	37,647		$	37,987		$	147,641		$	149,471
Provision for loan and lease losses	2,225			919			1,627			3,736			2,362			8,507			7,193
Noninterest income	23,255			19,455			20,221			19,253			18,097			82,184			75,982
Noninterest expense	36,430			35,173			35,188			39,724			34,845			146,515			140,303
Income tax expense	4,202			4,402			4,239			2,764			1,746			15,607			14,165
Net income	16,383			16,359			15,778			10,676			17,131			59,196			63,792
Net loss attributable to noncontrolling interest	(1)			(1)			(7)			(1)			(5)			(10)			—
Net income attributable to Bryn Mawr Bank Corporation	16,384			16,360			15,785			10,677			17,136			59,206			63,792
Basic earnings per share	0.81			0.81			0.78			0.53			0.85			2.94			3.15
Diluted earnings per share	0.81			0.81			0.78			0.53			0.84			2.93			3.13
Net income (core) ⁽¹⁾	16,384			16,360			15,785			14,230			17,167			62,759			70,620
Basic earnings per share (core) ⁽¹⁾	0.81			0.81			0.78			0.71			0.85			3.12			3.49
Diluted earnings per share (core) ⁽¹⁾	0.81			0.81			0.78			0.70			0.84			3.10			3.46
Dividends paid or accrued per share	0.26			0.26			0.26			0.25			0.25			1.03			0.94
Profitability Indicators
Return on average assets	1.36		%	1.36		%	1.36		%	0.95		%	1.54		%	1.26		%	1.47		%
Return on average equity	10.72		%	10.90		%	10.89		%	7.57		%	12.22		%	10.05		%	11.78		%
Return on tangible equity⁽¹⁾	16.85		%	17.35		%	17.62		%	12.65		%	20.37		%	16.18		%	19.91		%
Return on tangible equity (core)⁽¹⁾	16.85		%	17.35		%	17.62		%	16.59		%	20.40		%	17.10		%	21.95		%
Return on average assets (core)⁽¹⁾	1.36		%	1.36		%	1.36		%	1.27		%	1.54		%	1.34		%	1.62		%
Return on average equity (core)⁽¹⁾	10.72		%	10.90		%	10.89		%	10.09		%	12.24		%	10.66		%	13.04		%
Tax-equivalent net interest margin	3.36		%	3.54		%	3.55		%	3.75		%	3.79		%	3.55		%	3.80		%
Efficiency ratio⁽¹⁾	59.89		%	60.19		%	60.23		%	60.26		%	60.35		%	60.14		%	57.17		%
Share Data
Closing share price	$	41.24		$	36.51		$	37.32		$	36.13		$	34.40
Book value per common share	$	30.42		$	29.86		$	29.31		$	28.52		$	28.01
Tangible book value per common share	$	20.36		$	19.75		$	19.16		$	18.34		$	17.75
Price / book value	135.57		%	122.27		%	127.33		%	126.68		%	122.81		%
Price / tangible book value	202.55		%	184.86		%	194.78		%	197.00		%	193.80		%
Weighted average diluted shares outstanding	20,213,008			20,208,630			20,244,409			20,271,661			20,321,283			20,233,371			20,390,167
Shares outstanding, end of period	20,126,296			20,124,193			20,131,854			20,167,729			20,163,816
Wealth Management Information:
Wealth assets under mgmt, administration, supervision and brokerage ⁽²⁾	$	16,548,060		$	15,609,786		$	14,815,298		$	14,736,512		$	13,429,544
Fees for wealth management services	$	11,672		$	10,826		$	11,510		$	10,392		$	11,017

Bryn Mawr Bank Corporation

Summary Financial Information (unaudited)

(dollars in thousands, except per share data)


	As of or For the Three Months Ended																					For the Twelve Months Ended
	December 31, 2019			September 30, 2019			June 30, 2019			March 31, 2019			December 31, 2018			December 31, 2019			December 31, 2018
Capital Ratios⁽³⁾
Bryn Mawr Trust Company ("BMTC")
Tier I capital to risk weighted assets ("RWA")	11.48		%	12.17		%	11.83		%	11.30		%	11.42		%
Total capital to RWA	12.09		%	12.75		%	12.42		%	11.87		%	11.99		%
Tier I leverage ratio	9.37		%	9.75		%	9.61		%	9.48		%	9.48		%
Tangible equity ratio ⁽¹⁾	8.58		%	9.75		%	9.58		%	9.34		%	8.95		%
Common equity Tier I capital to RWA	11.48		%	12.17		%	11.83		%	11.30		%	11.42		%

Bryn Mawr Bank Corporation ("BMBC")
Tier I capital to RWA	11.43		%	11.33		%	11.12		%	10.72		%	10.92		%
Total capital to RWA	14.70		%	14.61		%	14.44		%	14.00		%	14.30		%
Tier I leverage ratio	9.33		%	9.07		%	9.04		%	8.99		%	9.06		%
Tangible equity ratio ⁽¹⁾	8.10		%	8.60		%	8.51		%	8.35		%	8.05		%
Common equity Tier I capital to RWA	10.87		%	10.75		%	10.54		%	10.14		%	10.32		%

Asset Quality Indicators
Net loan and lease charge-offs ("NCO"s)	$	400		$	1,324		$	1,061		$	2,546		$	1,620		$	5,331		$	5,292

Nonperforming loans and leases ("NPL"s)	$	10,648		$	14,119		$	12,179		$	19,283		$	12,820
Other real estate owned ("OREO")	—			72			155			84			417
Total nonperforming assets ("NPA"s)	$	10,648		$	14,191		$	12,334		$	19,367		$	13,237

Nonperforming loans and leases 30 or more days past due	$	6,314		$	4,940		$	8,224		$	8,489		$	7,765
Performing loans and leases 30 to 89 days past due	7,196			5,273			9,466			6,432			5,464
Performing loans and leases 90 or more days past due	—			—			—			—			—
Total delinquent loans and leases	$	13,510		$	10,213		$	17,690		$	14,921		$	13,229

Delinquent loans and leases to total loans and leases	0.37		%	0.29		%	0.50		%	0.42		%	0.39		%
Delinquent performing loans and leases to total loans and leases	0.19		%	0.15		%	0.27		%	0.18		%	0.16		%
NCOs / average loans and leases (annualized)	0.04		%	0.15		%	0.12		%	0.30		%	0.19		%	0.15		%	0.16		%
NPLs / total portfolio loans and leases	0.29		%	0.40		%	0.34		%	0.55		%	0.37		%
NPAs / total loans and leases and OREO	0.29		%	0.40		%	0.35		%	0.55		%	0.39		%
NPAs / total assets	0.20		%	0.29		%	0.26		%	0.42		%	0.28		%
ALLL / NPLs	212.27		%	147.16		%	173.92		%	106.91		%	151.53		%
ALLL / portfolio loans	0.61		%	0.59		%	0.60		%	0.59		%	0.57		%
ALLL for originated loans and leases / Originated loans and leases ⁽¹⁾	0.68		%	0.66		%	0.68		%	0.68		%	0.67		%
(Total ALLL + Loan mark) / Total Gross portfolio loans and leases ⁽¹⁾	0.91		%	0.92		%	1.00		%	1.03		%	1.08		%

Troubled debt restructurings ("TDR"s) included in NPLs	$	3,018		$	5,755		$	4,190		$	4,057		$	1,217
TDRs in compliance with modified terms	5,071			5,069			5,141			5,149			9,745
Total TDRs	$	8,089		$	10,824		$	9,331		$	9,206		$	10,962

(1)Non-GAAP measure - see Appendix for Non-GAAP to GAAP reconciliation.

(2)Brokerage assets represent assets held at a registered broker dealer under a clearing agreement.

(3)Capital Ratios for the current quarter are to be considered preliminary until the Call Reports are filed.

Bryn Mawr Bank Corporation

Detailed Balance Sheets (unaudited)

(dollars in thousands)


	December 31, 2019		September 30, 2019		June 30, 2019		March 31, 2019		December 31, 2018
Assets
Cash and due from banks	$	11,603	$	8,582	$	13,742	$	13,656	$	14,099
Interest-bearing deposits with banks	42,328		86,158		49,643		29,449		34,357
Cash and cash equivalents	53,931		94,740		63,385		43,105		48,456
Investment securities, available for sale	1,005,984		604,181		588,119		559,983		737,442
Investment securities, held to maturity	12,577		12,947		10,209		10,457		8,684
Investment securities, trading	8,621		8,324		8,516		8,189		7,502
Loans held for sale	4,249		5,767		6,333		2,884		1,749
Portfolio loans and leases, originated	3,320,816		3,137,769		3,088,849		3,032,270		2,885,251
Portfolio loans and leases, acquired	368,497		402,978		445,816		491,244		541,903
Total portfolio loans and leases	3,689,313		3,540,747		3,534,665		3,523,514		3,427,154
Less: Allowance for losses on originated loan and leases	(22,526)		(20,675)		(21,076)		(20,519)		(19,329)
Less: Allowance for losses on acquired loan and leases	(76)		(102)		(106)		(97)		(97)
Total allowance for loan and lease losses	(22,602)		(20,777)		(21,182)		(20,616)		(19,426)
Net portfolio loans and leases	3,666,711		3,519,970		3,513,483		3,502,898		3,407,728
Premises and equipment	64,965		66,439		68,092		67,279		65,648
Operating lease right-of-use assets	40,961		42,200		43,116		43,985		—
Accrued interest receivable	12,482		12,746		13,312		13,123		12,585
Mortgage servicing rights	4,450		4,580		4,744		4,910		5,047
Bank owned life insurance	59,079		58,749		58,437		58,138		57,844
Federal Home Loan Bank ("FHLB") stock	23,744		16,148		14,677		10,526		14,530
Goodwill	184,012		184,012		184,012		184,012		184,012
Intangible assets	19,131		20,084		21,038		21,994		23,455
Other investments	16,683		16,683		16,517		16,526		16,526
Other assets	85,679		161,071		122,575		83,984		61,277
Total assets	$	5,263,259	$	4,828,641	$	4,736,565	$	4,631,993	$	4,652,485

Liabilities
Deposits
Noninterest-bearing	$	898,173	$	904,409	$	940,911	$	882,310	$	901,619
Interest-bearing	2,944,072		2,794,079		2,691,502		2,755,307		2,697,468
Total deposits	3,842,245		3,698,488		3,632,413		3,637,617		3,599,087
Short-term borrowings	493,219		203,471		207,828		124,214		252,367
Long-term FHLB advances	52,269		44,735		47,941		55,407		55,374
Subordinated notes	98,705		98,660		98,616		98,571		98,526
Jr. subordinated debentures	21,753		21,709		21,665		21,622		21,580
Operating lease liabilities	45,258		46,506		47,393		48,224		—
Accrued interest payable	6,248		9,015		8,244		8,674		6,652
Other liabilities	91,335		105,122		82,310		62,557		54,195
Total liabilities	4,651,032		4,227,706		4,146,410		4,056,886		4,087,781

Shareholders' equity
Common stock	24,650		24,646		24,583		24,577		24,545
Paid-in capital in excess of par value	378,606		377,806		376,652		375,655		374,010
Less: common stock held in treasury, at cost	(81,174)		(81,089)		(78,583)		(76,974)		(75,883)
Accumulated other comprehensive income (loss), net of tax	2,187		2,698		1,700		(3,278)		(7,513)
Retained earnings	288,653		277,568		266,496		255,813		250,230
Total Bryn Mawr Bank Corporation shareholders' equity	612,922		601,629		590,848		575,793		565,389
Noncontrolling interest	(695)		(694)		(693)		(686)		(685)
Total shareholders' equity	612,227		600,935		590,155		575,107		564,704
Total liabilities and shareholders' equity	$	5,263,259	$	4,828,641	$	4,736,565	$	4,631,993	$	4,652,485

Bryn Mawr Bank Corporation

Supplemental Balance Sheet Information (unaudited)

(dollars in thousands)


	Portfolio Loans and Leases as of
	December 31, 2019		September 30, 2019		June 30, 2019		March 31, 2019		December 31, 2018
Commercial mortgages	$	1,913,430	$	1,762,382	$	1,755,798	$	1,746,695	$	1,657,436
Home equity loans and lines	194,640		198,030		203,852		204,791		207,351
Residential mortgages	489,903		505,304		506,093		502,379		494,355
Construction	159,867		151,593		152,554		159,761		181,078
Total real estate loans	2,757,840		2,617,309		2,618,297		2,613,626		2,540,220
Commercial & Industrial	709,257		709,808		704,167		705,701		695,584
Consumer	57,138		50,481		49,335		47,821		46,814
Leases	165,078		163,149		162,866		156,366		144,536
Total non-real estate loans and leases	931,473		923,438		916,368		909,888		886,934
Total portfolio loans and leases	$	3,689,313	$	3,540,747	$	3,534,665	$	3,523,514	$	3,427,154


	Nonperforming Loans and Leases as of
	December 31, 2019		September 30, 2019		June 30, 2019		March 31, 2019		December 31, 2018
Commercial mortgages	$	4,270	$	7,819	$	6,072	$	5,558	$	2,568
Home equity loans and lines	779		790		49		6,904		3,616
Residential mortgages	318		301		701		2,863		3,452
Construction	—		—		—		—		—
Total nonperforming real estate loans	5,367		8,910		6,822		15,325		9,636
Commercial & Industrial	4,337		4,141		4,495		2,965		2,101
Consumer	61		75		60		80		108
Leases	883		993		802		913		975
Total nonperforming non-real estate loans and leases	5,281		5,209		5,357		3,958		3,184
Total nonperforming portfolio loans and leases	$	10,648	$	14,119	$	12,179	$	19,283	$	12,820


	Net Loan and Lease Charge-Offs (Recoveries) for the Three Months Ended
	December 31, 2019		September 30, 2019		June 30, 2019		March 31, 2019		December 31, 2018
Commercial mortgage	$	(781)	$	656	$	(3)	$	1,373	$	249
Home equity loans and lines	33		(22)		180		46		107
Residential	95		(7)		339		329		304
Construction	(1)		(1)		(1)		(1)		—
Total net charge-offs of real estate loans	(654)		626		515		1,747		660
Commercial & Industrial	248		8		(18)		391		298
Consumer	223		181		119		94		147
Leases	583		509		445		314		515
Total net charge-offs of non-real estate loans and leases	1,054		698		546		799		960
Total net charge-offs	$	400	$	1,324	$	1,061	$	2,546	$	1,620

Bryn Mawr Bank Corporation

Supplemental Balance Sheet Information (unaudited)

(dollars in thousands)


	Investment Securities Available for Sale, at Fair Value
	December 31, 2019		September 30, 2019		June 30, 2019		March 31, 2019		December 31, 2018
U.S. Treasury securities	$	500,101	$	101	$	101	$	100	$	200,013
Obligations of the U.S. Government and agencies	102,020		172,753		192,799		186,746		195,855
State & political subdivisions - tax-free	5,379		6,327		6,700		8,468		11,162
State & political subdivisions - taxable	—		—		170		170		170
Mortgage-backed securities	366,002		388,891		348,975		322,913		289,890
Collateralized mortgage obligations	31,832		35,459		38,724		40,486		39,252
Other debt securities	650		650		650		1,100		1,100

Total investment securities available for sale, at fair value	$	1,005,984	$	604,181	$	588,119	$	559,983	$	737,442


	Unrealized Gain (Loss) on Investment Securities Available for Sale
	December 31, 2019		September 30, 2019		June 30, 2019		March 31, 2019		December 31, 2018
U.S. Treasury securities	$	35	$	1	$	1	$	—	$	(13)
Obligations of the U.S. Government and agencies	(159)		188		275		(1,334)		(2,749)
State & political subdivisions - tax-free	13		8		8		(5)		(39)
State & political subdivisions - taxable	—		—		—		—		(1)
Mortgage-backed securities	5,025		4,605		3,364		(696)		(4,186)
Collateralized mortgage obligations	36		180		89		(510)		(898)
Other debt securities	—		—		—		—		—

Total unrealized gains (losses) on investment securities available for sale	$	4,950	$	4,982	$	3,737	$	(2,545)	$	(7,886)


	Deposits
	December 31, 2019		September 30, 2019		June 30, 2019		March 31, 2019		December 31, 2018
Interest-bearing deposits:
Interest-bearing demand	$	944,915	$	778,809	$	745,134	$	664,683	$	664,749
Money market	1,106,478		983,170		966,596		961,348		862,644
Savings	220,450		248,539		263,830		265,613		247,081
Retail time deposits	405,123		467,346		502,745		531,522		542,702
Wholesale non-maturity deposits	177,865		274,121		100,047		47,744		55,031
Wholesale time deposits	89,241		42,094		113,150		284,397		325,261
Total interest-bearing deposits	2,944,072		2,794,079		2,691,502		2,755,307		2,697,468
Noninterest-bearing deposits	898,173		904,409		940,911		882,310		901,619
Total deposits	$	3,842,245	$	3,698,488	$	3,632,413	$	3,637,617	$	3,599,087

Bryn Mawr Bank Corporation

Detailed Income Statements (unaudited)

(dollars in thousands, except per share data)


	For the Three Months Ended																					For the Twelve Months Ended
	December 31, 2019			September 30, 2019			June 30, 2019			March 31, 2019			December 31, 2018			December 31, 2019			December 31, 2018
Interest income:
Interest and fees on loans and leases	$	43,220		$	45,527		$	44,783		$	44,837		$	44,157		$	178,367		$	168,638
Interest on cash and cash equivalents	195			143			73			132			83			543			264
Interest on investment securities	3,545			3,903			3,532			3,499			3,294			14,479			12,153
Total interest income	46,960			49,573			48,388			48,468			47,534			193,389			181,055
Interest expense:
Interest on deposits	8,674			9,510			9,655			8,097			7,048			35,936			20,552
Interest on short-term borrowings	555			937			357			943			681			2,792			3,392
Interest on FHLB advances	279			243			269			278			331			1,069			1,777
Interest on jr. subordinated debentures	323			340			352			358			342			1,373			1,288
Interest on subordinated notes	1,144			1,145			1,144			1,145			1,145			4,578			4,575
Total interest expense	10,975			12,175			11,777			10,821			9,547			45,748			31,584
Net interest income	35,985			37,398			36,611			37,647			37,987			147,641			149,471
Provision for loan and lease losses (the "Provision")	2,225			919			1,627			3,736			2,362			8,507			7,193
Net interest income after Provision	33,760			36,479			34,984			33,911			35,625			139,134			142,278
Noninterest income:
Fees for wealth management services	11,672			10,826			11,510			10,392			11,017			44,400			42,326
Insurance commissions	1,666			1,842			1,697			1,672			1,459			6,877			6,808
Capital markets revenue	5,455			2,113			1,489			2,219			1,367			11,276			4,848
Service charges on deposits	858			856			852			808			798			3,374			2,989
Loan servicing and other fees	489			555			553			609			539			2,206			2,259
Net gain on sale of loans	597			674			752			319			1,606			2,342			3,283
Net gain on sale of investment securities available for sale	—			—			—			—			—			—			7
Net (loss) gain on sale of other real estate owned	(48)			(12)			—			(24)			3			(84)			295
Dividends on FHLB and FRB stocks	432			346			316			411			305			1,505			1,621
Other operating income	2,134			2,255			3,052			2,847			1,003			10,288			11,546
Total noninterest income	23,255			19,455			20,221			19,253			18,097			82,184			75,982
Noninterest expense:
Salaries and wages	18,667			17,765			17,038			20,901			17,921			74,371			66,671
Employee benefits	2,685			3,288			3,317			4,166			2,977			13,456			12,918
Occupancy and bank premises	3,206			3,008			3,125			3,252			3,135			12,591			11,599
Furniture, fixtures and equipment	2,401			2,335			2,568			2,389			2,370			9,693			8,407
Advertising	599			587			504			415			540			2,105			1,719
Amortization of intangible assets	953			954			956			938			997			3,801			3,656
Impairment (recovery) of mortgage servicing rights ("MSRs")	13			(19)			10			17			101			21			27
Due diligence, merger-related and merger integration expenses	—			—			—			—			—			—			7,761
Professional fees	1,754			1,044			1,316			1,320			1,526			5,434			4,203
Pennsylvania bank shares tax	42			514			513			409			374			1,478			1,792
Data processing	1,517			1,377			1,303			1,320			1,340			5,517			4,942
Other operating expenses	4,593			4,320			4,538			4,597			3,564			18,048			16,608
Total noninterest expense	36,430			35,173			35,188			39,724			34,845			146,515			140,303
Income before income taxes	20,585			20,761			20,017			13,440			18,877			74,803			77,957
Income tax expense	4,202			4,402			4,239			2,764			1,746			15,607			14,165
Net income	$	16,383		$	16,359		$	15,778		$	10,676		$	17,131		$	59,196		$	63,792
Net loss attributable to noncontrolling interest	(1)			(1)			(7)			(1)			(5)			(10)			—
Net income attributable to Bryn Mawr Bank Corporation	$	16,384		$	16,360		$	15,785		$	10,677		$	17,136		$	59,206		$	63,792

Per share data:
Weighted average shares outstanding	20,124,553			20,132,117			20,144,651			20,168,498			20,225,993			20,142,306			20,234,792
Dilutive common shares	88,455			76,513			99,758			103,163			95,290			91,065			155,375
Weighted average diluted shares	20,213,008			20,208,630			20,244,409			20,271,661			20,321,283			20,233,371			20,390,167
Basic earnings per common share	$	0.81		$	0.81		$	0.78		$	0.53		$	0.85		$	2.94		$	3.15
Diluted earnings per common share	$	0.81		$	0.81		$	0.78		$	0.53		$	0.84		$	2.93		$	3.13
Dividends paid or accrued per share	$	0.26		$	0.26		$	0.26		$	0.25		$	0.25		$	1.03		$	0.94
Effective tax rate	20.41		%	21.20		%	21.18		%	20.57		%	9.25		%	20.86		%	18.17		%

Bryn Mawr Bank Corporation

Tax-Equivalent Net Interest Margin (unaudited)

(dollars in thousands, except per share data)


	For the Three Months Ended																																												For the Twelve Months Ended
	December 31, 2019										September 30, 2019										June 30, 2019										March 31, 2019									December 31, 2018				December 31, 2019		December 31, 2018
(dollars in thousands)	Average Balance		Interest Income/ Expense		Average Rates Earned/ Paid		Average Balance		Interest Income/ Expense		Average Rates Earned/ Paid		Average Balance		Interest Income/ Expense		Average Rates Earned/ Paid		Average Balance		Interest Income/ Expense		Average Rates Earned/ Paid		Average Balance		Interest Income/ Expense		Average Rates Earned/ Paid			Average Balance		Interest Income/ Expense		Average Rates Earned/ Paid		Average Balance		Interest Income/ Expense		Average Rates Earned/ Paid

Assets:
Interest-bearing deposits with other banks	$	66,060	$	195	1.17	%	$	48,597	$	143	1.17	%	$	37,843	$	73	0.77	%	$	32,742	$	132	1.64	%	$	38,957	$	83	0.85	%		$	46,408	$	543	1.17	%	$	37,550	$	264	0.70	%
Investment securities - available for sale:
Taxable	566,359		3,334		2.34	%	594,975		3,765		2.51	%	560,999		3,400		2.43	%	543,687		3,363		2.51	%	524,117		3,075		2.33	%		566,645		13,862		2.45	%	513,114		11,457		2.23	%
Tax-exempt	5,844		33		2.24	%	6,594		36		2.17	%	7,530		43		2.29	%	9,795		55		2.28	%	13,184		70		2.11	%		7,428		167		2.25	%	16,966		346		2.04	%
Total investment securities - available for sale	572,203		3,367		2.33	%	601,569		3,801		2.51	%	568,529		3,443		2.43	%	553,482		3,418		2.50	%	537,301		3,145		2.32	%		574,073		14,029		2.44	%	530,080		11,803		2.23	%

Investment securities - held to maturity	12,756		84		2.61	%	12,360		80		2.57	%	10,417		71		2.73	%	8,804		67		3.09	%	8,761		63		2.85	%		11,099		302		2.72	%	8,232		234		2.84	%
Investment securities - trading	8,330		99		4.72	%	8,407		27		1.27	%	8,572		24		1.12	%	7,629		22		1.17	%	8,203		96		4.64	%		8,237		172		2.09	%	8,237		169		2.05	%

Loans and leases *	3,598,609		43,326		4.78	%	3,532,923		45,642		5.13	%	3,524,219		44,903		5.11	%	3,477,739		44,958		5.24	%	3,399,484		44,274		5.17	%		3,533,702		178,829		5.06	%	3,356,295		169,024		5.04	%

Total interest-earning assets	4,257,958		47,071		4.39	%	4,203,856		49,693		4.69	%	4,149,580		48,514		4.69	%	4,080,396		48,597		4.83	%	3,992,706		47,661		4.74	%		4,173,519		193,875		4.65	%	3,940,394		181,494		4.61	%

Cash and due from banks	9,829						12,890						13,725						14,414						13,962							12,703						9,853
Less: allowance for loan and lease losses	(21,124)						(21,438)						(20,844)						(19,887)						(18,625)							(20,828)						(18,447)
Other assets	528,744						564,766						509,164						470,206						424,957							518,507						420,322

Total assets	$	4,775,407					$	4,760,074					$	4,651,625					$	4,545,129					$	4,413,000						$	4,683,901					$	4,352,122

Liabilities:

Interest-bearing deposits:
Savings, NOW and market rate deposits	$	2,149,623	$	5,659	1.04	%	$	1,996,181	$	5,445	1.08	%	$	1,928,755	$	5,040	1.05	%	$	1,798,103	$	3,764	0.85	%	$	1,704,065	$	2,883	0.67	%		$	1,969,205	$	19,908	1.01	%	$	1,715,239	$	8,860	0.52	%
Wholesale deposits	214,229		1,024		1.90	%	299,309		1,729		2.29	%	345,782		2,143		2.49	%	342,696		2,012		2.38	%	346,134		1,986		2.28	%		300,148		6,908		2.30	%	251,384		5,021		2.00	%
Retail time deposits	435,198		1,991		1.82	%	480,736		2,336		1.93	%	520,317		2,472		1.91	%	533,395		2,321		1.76	%	552,213		2,179		1.57	%		492,110		9,120		1.85	%	539,934		6,671		1.24	%
Total interest-bearing deposits	2,799,050		8,674		1.23	%	2,776,226		9,510		1.36	%	2,794,854		9,655		1.39	%	2,674,194		8,097		1.23	%	2,602,412		7,048		1.07	%		2,761,463		35,936		1.30	%	2,506,557		20,552		0.82	%

Borrowings:
Short-term borrowings	121,612		555		1.81	%	169,985		937		2.19	%	68,529		357		2.09	%	157,652		943		2.43	%	128,429		681		2.10	%		129,457		2,792		2.16	%	178,582		3,392		1.90	%
Long-term FHLB advances	53,443		279		2.07	%	45,698		243		2.11	%	52,397		269		2.06	%	55,385		278		2.04	%	67,363		331		1.95	%		51,709		1,069		2.07	%	93,503		1,777		1.90	%
Subordinated notes	98,681		1,144		4.60	%	98,634		1,145		4.61	%	98,587		1,144		4.65	%	98,542		1,145		4.71	%	98,497		1,145		4.61	%		98,612		4,578		4.64	%	98,462		4,575		4.65	%
Jr. subordinated debt	21,726		323		5.90	%	21,680		340		6.22	%	21,637		352		6.53	%	21,595		358		6.72	%	21,553		342		6.30	%		21,660		1,373		6.34	%	21,491		1,288		5.99	%
Total borrowings	295,462		2,301		3.09	%	335,997		2,665		3.15	%	241,150		2,122		3.53	%	333,174		2,724		3.32	%	315,842		2,499		3.14	%		301,438		9,812		3.26	%	392,038		11,032		2.81	%

Total interest-bearing liabilities	3,094,512		10,975		1.41	%	3,112,223		12,175		1.55	%	3,036,004		11,777		1.56	%	3,007,368		10,821		1.46	%	2,918,254		9,547		1.30	%		3,062,901		45,748		1.49	%	2,898,595		31,584		1.09	%

Noninterest-bearing deposits	915,128						903,314						909,945						871,726						878,047							900,156						856,506
Other liabilities	159,259						149,226						124,211						93,949						60,393							131,889						55,436
Total noninterest-bearing liabilities	1,074,387						1,052,540						1,034,156						965,675						938,440							1,032,045						911,942

Total liabilities	4,168,899						4,164,763						4,070,160						3,973,043						3,856,694							4,094,946						3,810,537

Shareholders' equity	606,508						595,311						581,465						572,086						556,306							588,955						541,585

Total liabilities and shareholders' equity	$	4,775,407					$	4,760,074					$	4,651,625					$	4,545,129					$	4,413,000						$	4,683,901					$	4,352,122

Net interest spread					2.98	%					3.14	%					3.13	%					3.37	%					3.44	%						3.16	%					3.52	%
Effect of noninterest-bearing sources					0.38	%					0.40	%					0.42	%					0.38	%					0.35	%						0.39	%					0.28	%

Tax-equivalent net interest margin			$	36,096	3.36	%			$	37,518	3.54	%			$	36,737	3.55	%			$	37,776	3.75	%			$	38,114	3.79	%				$	148,127	3.55	%			$	149,910	3.80	%

Tax-equivalent adjustment			$	111	0.01	%			$	120	0.01	%			$	126	0.01	%			$	129	0.01	%			$	127	0.01	%				$	486	0.01	%			$	439	0.01	%
* Average loans and leases include portfolio loans and leases, and loans held for sale. Non-accrual loans are also included in the average loan and leases balances.

Bryn Mawr Bank Corporation

Tax-Equivalent Net Interest Margin (unaudited)

(dollars in thousands, except per share data)

Supplemental Information Regarding Accretion of Fair Value Marks


	For the Three Months Ended																															For the Twelve Months Ended
	December 31, 2019							September 30, 2019						June 30, 2019								March 31, 2019					December 31, 2018				December 31, 2019		December 31, 2018
(dollars in thousands)	Interest	Inc. / (Dec.)		Effect on Yield or Rate		Inc. / (Dec.)		Effect on Yield or Rate		Inc. / (Dec.)		Effect on Yield or Rate		Inc. / (Dec.)		Effect on Yield or Rate		Inc. / (Dec.)		Effect on Yield or Rate			Inc. / (Dec.)		Effect on Yield or Rate		Inc. / (Dec.)		Effect on Yield or Rate
Loans and leases	Income	$	1,027	0.11	%	$	1,501	0.17	%	$	1,193	0.14	%	$	1,997	0.23	%	$	2,492	0.29	%		$	5,718	0.16	%	$	8,603	0.26	%
Retail time deposits	Expense	(134)		(0.12)	%	(151)		(0.12)	%	(171)		(0.13)	%	(222)		(0.17)	%	(279)		(0.20)	%		(678)		(0.14)	%	(1,309)		(0.24)	%
Long-term FHLB advances	Expense	34		0.25	%	34		0.30	%	34		0.26	%	33		0.24	%	34		0.20	%		135		0.26	%	106		0.11	%
Jr. subordinated debt	Expense	44		0.80	%	44		0.81	%	43		0.80	%	42		0.79	%	42		0.77	%		173		0.80	%	164		0.76	%
Net interest income from fair value marks		$	1,083			$	1,574			$	1,287			$	2,144			$	2,695				$	6,088			$	9,642
Purchase accounting effect on tax-equivalent margin				0.10	%			0.15	%			0.12	%			0.21	%			0.27	%				0.15	%			0.24	%

Bryn Mawr Bank Corporation

Appendix - Non-GAAP to GAAP Reconciliations and Calculation of Non-GAAP Performance Measures (unaudited)

(dollars in thousands, except per share data)


Statement on Non-GAAP Measures: The Corporation believes the presentation of the following non-GAAP financial measures provides useful supplemental information that is essential to an investor’s proper understanding of the results of operations and financial condition of the Corporation. Management uses non-GAAP financial measures in its analysis of the Corporation’s performance. These non-GAAP measures should not be viewed as substitutes for the financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

	As of or For the Three Months Ended																					As of or For the Twelve Months Ended
	December 31, 2019			September 30, 2019			June 30, 2019			March 31, 2019			December 31, 2018			December 31, 2019			December 31, 2018
Reconciliation of Net Income to Net Income (core):
Net income attributable to BMBC (a GAAP measure)	$	16,384		$	16,360		$	15,785		$	10,677		$	17,136		$	59,206		$	63,792
Less: Tax-effected non-core noninterest income:
Gain on sale of investment securities available for sale	—			—			—			—			—			—			(6)
Add: Tax-effected non-core noninterest expense items:
Due diligence, merger-related and merger integration expenses	—			—			—			—			—			—			6,131
Voluntary years of service incentive program expenses	—			—			—			3,553			—			3,553			—
Add: Federal income tax expense related to re-measurement of net deferred tax asset due to tax reform legislation	—			—			—			—			31			—			703
Net income (core) (a non-GAAP measure)	$	16,384		$	16,360		$	15,785		$	14,230		$	17,167		$	62,759		$	70,620

Calculation of Basic and Diluted Earnings per Common Share (core):
Weighted average common shares outstanding	20,124,553			20,132,117			20,144,651			20,168,498			20,225,993			20,142,306			20,234,792
Dilutive common shares	88,455			76,513			99,758			103,163			95,290			91,065			155,375
Weighted average diluted shares	20,213,008			20,208,630			20,244,409			20,271,661			20,321,283			20,233,371			20,390,167
Basic earnings per common share (core) (a non-GAAP measure)	$	0.81		$	0.81		$	0.78		$	0.71		$	0.85		$	3.12		$	3.49
Diluted earnings per common share (core) (a non-GAAP measure)	$	0.81		$	0.81		$	0.78		$	0.70		$	0.84		$	3.10		$	3.46

Calculation of Return on Average Tangible Equity:
Net income attributable to BMBC (a GAAP measure)	$	16,384		$	16,360		$	15,785		$	10,677		$	17,136		$	59,206		$	63,792
Add: Tax-effected amortization and impairment of intangible assets	753			754			755			741			787			3,003			2,888
Net tangible income (numerator)	$	17,137		$	17,114		$	16,540		$	11,418		$	17,923		$	62,209		$	66,680

Average shareholders' equity	$	606,508		$	595,311		$	581,465		$	572,086		$	556,306		$	588,955		$	541,585
Less: Average Noncontrolling interest	694			693			688			685			681			690			684
Less: Average goodwill and intangible assets	(203,663)			(204,637)			(205,593)			(206,716)			(207,893)			(205,143)			(207,343)
Net average tangible equity (denominator)	$	403,539		$	391,367		$	376,560		$	366,055		$	349,094		$	384,502		$	334,926

Return on tangible equity (a non-GAAP measure)	16.85		%	17.35		%	17.62		%	12.65		%	20.37		%	16.18		%	19.91		%

Calculation of Return on Average Tangible Equity (core):
Net income (core) (a non-GAAP measure)	$	16,384		$	16,360		$	15,785		$	14,230		$	17,167		$	62,759		$	70,620
Add: Tax-effected amortization and impairment of intangible assets	753			754			755			741			787			3,003			2,888
Net tangible income (core) (numerator)	$	17,137		$	17,114		$	16,540		$	14,971		$	17,954		$	65,762		$	73,508

Average shareholders' equity	$	606,508		$	595,311		$	581,465		$	572,086		$	556,306		$	588,955		$	541,585
Less: Average Noncontrolling interest	694			693			688			685			681			690			684
Less: Average goodwill and intangible assets	(203,663)			(204,637)			(205,593)			(206,716)			(207,893)			(205,143)			(207,343)
Net average tangible equity (denominator)	$	403,539		$	391,367		$	376,560		$	366,055		$	349,094		$	384,502		$	334,926

Return on tangible equity (core) (a non-GAAP measure)	16.85		%	17.35		%	17.62		%	16.59		%	20.40		%	17.10		%	21.95		%

Bryn Mawr Bank Corporation

Appendix - Non-GAAP to GAAP Reconciliations and Calculation of Non-GAAP Performance Measures (unaudited)

(dollars in thousands, except per share data)


Statement on Non-GAAP Measures: The Corporation believes the presentation of the following non-GAAP financial measures provides useful supplemental information that is essential to an investor’s proper understanding of the results of operations and financial condition of the Corporation. Management uses non-GAAP financial measures in its analysis of the Corporation’s performance. These non-GAAP measures should not be viewed as substitutes for the financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

	As of or For the Three Months Ended																			As of or For the Twelve Months Ended
	December 31, 2019			September 30, 2019			June 30, 2019			March 31, 2019			December 31, 2018			December 31, 2019		December 31, 2018
Calculation of Tangible Equity Ratio (BMBC):
Total shareholders' equity	$	612,227		$	600,935		$	590,155		$	575,107		$	564,704
Less: Noncontrolling interest	695			694			693			686			685
Less: Goodwill and intangible assets	(203,143)			(204,096)			(205,050)			(206,006)			(207,467)
Net tangible equity (numerator)	$	409,779		$	397,533		$	385,798		$	369,787		$	357,922

Total assets	$	5,263,259		$	4,828,641		$	4,736,565		$	4,631,993		$	4,652,485
Less: Goodwill and intangible assets	(203,143)			(204,096)			(205,050)			(206,006)			(207,467)
Tangible assets (denominator)	$	5,060,116		$	4,624,545		$	4,531,515		$	4,425,987		$	4,445,018

Tangible equity ratio (BMBC)⁽¹⁾	8.10		%	8.60		%	8.51		%	8.35		%	8.05		%

Calculation of Tangible Equity Ratio (BMTC):
Total shareholders' equity	$	624,030		$	641,565		$	625,464		$	605,985		$	591,695
Less: Noncontrolling interest	695			694			693			686			685
Less: Goodwill and intangible assets	(190,694)			(191,572)			(192,450)			(193,329)			(194,715)
Net tangible equity (numerator)	$	434,031		$	450,687		$	433,707		$	413,342		$	397,665

Total assets	$	5,247,649		$	4,813,704		$	4,721,394		$	4,616,724		$	4,637,481
Less: Goodwill and intangible assets	(190,694)			(191,572)			(192,450)			(193,329)			(194,715)
Tangible assets (denominator)	$	5,056,955		$	4,622,132		$	4,528,944		$	4,423,395		$	4,442,766

Tangible equity ratio (BMTC)⁽¹⁾	8.58		%	9.75		%	9.58		%	9.34		%	8.95		%

Calculation of Return on Average Assets (core)
Return on average assets (GAAP)	1.36		%	1.36		%	1.36		%	0.95		%	1.54		%	1.26	%	1.47	%
Effect of adjustment to GAAP net income to core net income	—		%	—		%	—		%	0.32		%	—		%	0.08	%	0.15	%
Return on average assets (core)	1.36		%	1.36		%	1.36		%	1.27		%	1.54		%	1.34	%	1.62	%

Calculation of Return on Average Equity (core)
Return on average equity (GAAP)	10.72		%	10.90		%	10.89		%	7.57		%	12.22		%	10.05	%	11.78	%
Effect of adjustment to GAAP net income to core net income	—		%	—		%	—		%	2.52		%	0.02		%	0.61	%	1.26	%
Return on average equity (core)	10.72		%	10.90		%	10.89		%	10.09		%	12.24		%	10.66	%	13.04	%

Calculation of Tax-equivalent net interest margin adjusting for the impact of purchase accounting
Tax-equivalent net interest margin	3.36		%	3.54		%	3.55		%	3.75		%	3.79		%	3.55	%	3.80	%
Effect of fair value marks	0.10		%	0.15		%	0.12		%	0.21		%	0.27		%	0.15	%	0.24	%
Tax-equivalent net interest margin adjusting for the impact of purchase accounting	3.26		%	3.39		%	3.43		%	3.54		%	3.52		%	3.40	%	3.56	%

(1)Capital Ratios for the current quarter are to be considered preliminary until the Call Reports are filed.

Bryn Mawr Bank Corporation

Appendix - Non-GAAP to GAAP Reconciliations and Calculation of Non-GAAP Performance Measures (unaudited)

(dollars in thousands, except per share data)


Statement on Non-GAAP Measures: The Corporation believes the presentation of the following non-GAAP financial measures provides useful supplemental information that is essential to an investor’s proper understanding of the results of operations and financial condition of the Corporation. Management uses non-GAAP financial measures in its analysis of the Corporation’s performance. These non-GAAP measures should not be viewed as substitutes for the financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

	As of or For the Three Months Ended																					As of or For the Twelve Months Ended
	December 31, 2019			September 30, 2019			June 30, 2019			March 31, 2019			December 31, 2018			December 31, 2019			December 31, 2018
Calculation of Tax-equivalent net interest income adjusting for the impact of purchase accounting
Tax-equivalent net interest income	$	36,096		$	37,518		$	36,737		$	37,776		$	38,114		$	148,127		$	149,910
Effect of fair value marks	1,083			1,574			1,287			2,144			2,695			6,088			9,642
Tax-equivalent net interest income adjusting for the impact of purchase accounting	$	35,013		$	35,944		$	35,450		$	35,632		$	35,419		$	142,039		$	140,268

Calculation of Efficiency Ratio:
Noninterest expense	$	36,430		$	35,173		$	35,188		$	39,724		$	34,845		$	146,515		$	140,303
Less: certain noninterest expense items*:
Amortization of intangibles	(953)			(954)			(956)			(938)			(997)			(3,801)			(3,656)
Due diligence, merger-related and merger integration expenses	—			—			—			—			—			—			(7,761)
Voluntary years of service incentive program expenses	—			—			—			(4,498)			—			(4,498)			—
Noninterest expense (adjusted) (numerator)	$	35,477		$	34,219		$	34,232		$	34,288		$	33,848		$	138,216		$	128,886

Noninterest income	$	23,255		$	19,455		$	20,221		$	19,253		$	18,097		$	82,184		$	75,982
Less: non-core noninterest income items:
Gain on sale of investment securities available for sale	—			—			—			—			—			—			(7)
Noninterest income (core)	$	23,255		$	19,455		$	20,221		$	19,253		$	18,097		$	82,184		$	75,975
Net interest income	35,985			37,398			36,611			37,647			37,987			147,641			149,471
Noninterest income (core) and net interest income (denominator)	$	59,240		$	56,853		$	56,832		$	56,900		$	56,084		$	229,825		$	225,446

Efficiency ratio	59.89		%	60.19		%	60.23		%	60.26		%	60.35		%	60.14		%	57.17		%

Supplemental Loan and Allowance Information Used to Calculate Non-GAAP Measures
Total Allowance	$	22,602		$	20,777		$	21,182		$	20,616		$	19,426
Less: Allowance on acquired loans	76			102			106			97			97
Allowance on originated loans and leases	$	22,526		$	20,675		$	21,076		$	20,519		$	19,329

Total Allowance	$	22,602		$	20,777		$	21,182		$	20,616		$	19,426
Loan mark on acquired loans	10,905			11,948			14,174			15,841			17,822
Total Allowance + Loan mark	$	33,507		$	32,725		$	35,356		$	36,457		$	37,248

Total Portfolio loans and leases	$	3,689,313		$	3,540,747		$	3,534,665		$	3,523,514		$	3,427,154
Less: Originated loans and leases	3,320,816			3,137,769			3,088,849			3,032,270			2,885,251
Net acquired loans	$	368,497		$	402,978		$	445,816		$	491,244		$	541,903
Add: Loan mark on acquired loans	10,905			11,948			14,174			15,841			17,822
Gross acquired loans (excludes loan mark)	$	379,402		$	414,926		$	459,990		$	507,085		$	559,725
Originated loans and leases	3,320,816			3,137,769			3,088,849			3,032,270			2,885,251
Total Gross portfolio loans and leases	$	3,700,218		$	3,552,695		$	3,548,839		$	3,539,355		$	3,444,976

*In calculating the Corporation's efficiency ratio, which is used by Management to identify the cost of generating each dollar of core revenue, certain non-core income and expense items as well as the amortization of intangible assets, are excluded.

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