BRYN MAWR, Pa., Oct. 17, 2019 (GLOBE NEWSWIRE) -- 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 September 30, 2019, as compared to net income of $15.8 million, or $0.78 diluted earnings per share, for the three months ended June 30, 2019, and $16.7 million, or $0.82 diluted earnings per share, for the three months ended September 30, 2018.

On a non-GAAP basis, core net income, which excludes income tax charges incurred in connection with the Tax Cuts and Jobs Act (“Tax Reform”), due diligence and merger-related expenses, one-time costs associated with our voluntary Years of Service Incentive Program (the “Incentive Program”), and other non-core income and expense items, as detailed in the appendix to this earnings release, was $16.4 million, or $0.81 diluted earnings per share, for the three months ended September 30, 2019, as compared to $15.8 million, or $0.78 diluted earnings per share, for the three months ended June 30, 2019, and $17.1 million, or $0.84 diluted earnings per share, for the three months ended September 30, 2018. Management believes core net income is an important measure in evaluating the Corporation’s performance on a more comparable basis between periods. A reconciliation of this and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release.

“This is an exciting time for BMT as the Board’s commitment to building a market-leading company continues to manifest through another quarter of solid earnings and strong credit performance,” commented Frank Leto, President and Chief Executive Officer. “Our wealth business continued its growth trajectory as assets under management surpassed $15 billion and we believe our strong sales pipeline in this and other business lines is indicative of our focus on new business development,” Mr. Leto continued. “Our client-focused team is going to market as One BMT, bringing a unified, full suite of banking and wealth financial solutions to the communities we serve enabling us to continue our momentum into year-end and 2020.”

The Board of Directors of the Corporation declared a quarterly dividend of $0.26 per share, payable December 1, 2019 to shareholders of record as of November 1, 2019.

SIGNIFICANT ITEMS OF NOTE

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

• Net income for the three months ended September 30, 2019 was $16.4 million, compared to net income of $15.8 million for the three months ended June 30, 2019. Net interest income for the three months ended September 30, 2019 was $37.4 million, an increase of $787 thousand over the linked quarter. The provision for loan and lease losses (the “Provision”) for the three months ended September 30, 2019 decreased $708 thousand as compared to the second quarter of 2019. Total noninterest income decreased $766 thousand, total noninterest expense remained relatively unchanged, and income tax expense increased $163 thousand for the three months ended September 30, 2019, as compared to the three months ended June 30, 2019.
   
• Net interest income for the three months ended September 30, 2019 was $37.4 million, an increase of $787 thousand over the linked quarter. Tax-equivalent net interest income for the three months ended September 30, 2019 was $37.5 million, an increase of $781 thousand over the linked quarter. Tax-equivalent net interest income for the third quarter of 2019 was impacted by the accretion of purchase accounting fair value marks of $1.6 million as compared to $1.3 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 September 30, 2019 was $35.9 million, an increase of $494 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 increase in tax-equivalent net interest income adjusted for purchase accounting included increases of $431 thousand and $358 thousand in tax-equivalent interest and fees earned on loans and leases and tax-equivalent interest income on available for sale investment securities, respectively, and a decrease of $165 thousand in interest paid on deposits, partially offset by an increase of $580 thousand of interest expense on short-term borrowings for the three months ended September 30, 2019 as compared to the linked quarter ended June 30, 2019.
  
  Tax-equivalent interest and fees earned on loans and leases for the three months ended September 30, 2019 increased $739 thousand as compared to the linked quarter. Average loans and leases for the three months ended September 30, 2019 increased $8.7 million over the linked quarter and experienced a two basis point increase in tax-equivalent yield.
  
  Tax-equivalent interest income on available for sale investment securities for the three months ended September 30, 2019 increased $358 thousand as compared to the linked quarter. Average available for sale investment securities increased by $33.0 million over the linked quarter and experienced an eight basis point increase in tax-equivalent yield.
  
  Interest expense on deposits for the three months ended September 30, 2019 decreased $145 thousand over the linked quarter. Average interest-bearing deposits decreased $18.6 million coupled with a three basis point decrease in the rate paid as compared to the linked quarter.
  
  Interest expense on short-term borrowings for the three months ended September 30, 2019 increased $580 thousand over the linked quarter. Average short-term borrowings increased $101.5 million coupled with a 10 basis point increase in the rate paid as compared to the linked quarter.

• The tax-equivalent net interest margin was 3.54% for the three months ended September 30, 2019 as compared to 3.55% 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 3.39% for the three months ended September 30, 2019 as compared to 3.43% 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 $19.5 million for the three months ended September 30, 2019 decreased $766 thousand as compared to the linked quarter. Contributing to the decrease were decreases of $797 thousand and $684 thousand in other operating income and fees for wealth management services, respectively, partially offset by an increase of $624 thousand in capital markets revenue.
   
• Noninterest expense of $35.2 million for the three months ended September 30, 2019 remained relatively unchanged, decreasing $15 thousand as compared to the second quarter of 2019. The decrease on a linked quarter basis was primarily due to decreases of $272 thousand, $233 thousand and $218 thousand in professional fees, furniture, fixtures and equipment expenses, and other operating expenses, respectively, partially offset by an increase of $727 thousand in salaries and performance based incentives.
   
• The Provision decreased $708 thousand for the three months ended September 30, 2019 to $919 thousand, as compared to $1.6 million for the second quarter of 2019. Net loan and lease charge-offs for the third quarter of 2019 totaled $1.3 million as compared to $1.1 million for the second quarter of 2019. The effect on the Provision of the $263 increase in net charge-offs on a linked quarter basis was offset by improvements in certain qualitative factors linked to economic indicators used in the calculation of the allowance for loan and lease losses (the “Allowance”).
   
• The effective tax rate of 21.20% for the third quarter of 2019 was relatively unchanged compared to 21.18% for the second quarter of 2019.

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

• Net income for the three months ended September 30, 2019 was $16.4 million, or $0.81 diluted earnings per share, as compared to net income of $16.7 million, or diluted earnings per share of $0.82 for the same period in 2018. Net interest income for the three months ended September 30, 2019 was $37.4 million, an increase of $669 thousand as compared to the same period in 2018. The Provision for the three months ended September 30, 2019 increased $255 thousand as compared to the same period in 2018. Total noninterest income increased $1.2 million, total noninterest expense increased $1.6 million, and income tax expense increased $336 thousand for the three months ended September 30, 2019 as compared to the same period in 2018.
  
  On a non-GAAP basis, core net income, which excludes income tax charges incurred in connection with Tax Reform, due diligence and merger-related expenses, one-time costs associated with the Incentive Program, and other non-core income and expense items, as detailed in the appendix to this earnings release, was $16.4 million, or $0.81 per diluted share, for the three months ended September 30, 2019 as compared to $17.1 million, or $0.84 per diluted share, for the same period in 2018. Management believes core net income is an important measure in evaluating the Corporation’s performance on a more comparable basis between periods. A reconciliation of this and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release.

• Net interest income for the three months ended September 30, 2019 was $37.4 million, an increase of $669 thousand as compared to the same period in 2018. Tax-equivalent net interest income for the three months ended September 30, 2019 was $37.5 million, an increase of $666 thousand as compared to the same period in 2018. Tax-equivalent net interest income for the third quarter of 2019 was impacted by the accretion of purchase accounting fair value marks of $1.6 million as compared to $1.7 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 September 30, 2019 was $35.9 million, an increase of $794 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. Items contributing to the increase adjusted for purchase accounting included increases of $3.4 million and $808 thousand in tax-equivalent interest and fees earned on loans and leases and tax-equivalent interest earned on available for sale investment securities, respectively, as well as decreases of $159 thousand and $153 thousand in interest paid on short-term borrowings and long-term Federal Home Loan Bank (“FHLB”) advances, respectively. These increases to tax-equivalent net interest income were partially offset by a $3.8 million increase in interest paid on deposits for the three months ended September 30, 2019 as compared to the same period in 2018.
  
  Tax-equivalent interest and fees earned on loans and leases increased $3.4 million for the three months ended September 30, 2019 as compared to the same period in 2018. Average loans and leases for the third quarter of 2019 increased $153.2 million from the same period in 2018 and experienced a 17 basis point increase in tax-equivalent yield.
  
  Tax-equivalent interest income on available for sale investment securities increased $808 thousand for the three months ended September 30, 2019 as compared to the same period in 2018. Average available for sale investment securities increased by $71.2 million as compared to the same period in 2018 and experienced a 27 basis point tax-equivalent yield increase.
  
  Interest expense on short-term borrowings and long-term FHLB advances for the three months ended September 30, 2019 decreased $159 thousand and $151 thousand, respectively as compared to the same period in 2018. Average short-term borrowings and average long-term FHLB advances decreased $38.2 million and $35.8 million, respectively, offset by a 10 and 19 basis point increase in the rate paid on short-term borrowings and long-term FHLB advances, respectively, as compared to the same period in 2018.
  
  Interest expense on deposits for the three months ended September 30, 2019 increased $4.0 million as compared to the same period in 2018. The increase was primarily due to a 48 basis point increase in the rate paid on deposits as compared to the same period in 2018. The increase in rate paid was related to the competitive dynamics in the markets in which we operate and certain promotional interest rates offered during the first and second quarters of 2019. A $283.0 million increase in average interest-bearing deposits also contributed to the increase in interest expense on deposits.

• The tax-equivalent net interest margin was 3.54% for the three months ended September 30, 2019 as compared to 3.69% for the same period in 2018. Adjusting for the impact of the accretion of purchase accounting fair value marks, the adjusted tax-equivalent net interest margin was 3.39% and 3.52% for three months ended September 30, 2019 and 2018, respectively. The main drivers for the decrease in the adjusted tax-equivalent net interest margin were the rate and volume increases of interest-bearing deposits as discussed above. A reconciliation of this and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release.
   
• Noninterest income of $19.5 million for the three months ended September 30, 2019 increased by $1.2 million as compared to the same period in 2018. Increases of $1.4 million and $483 thousand in capital markets revenue and fees for wealth management services, respectively, were partially offset by a decrease of $916 thousand in other operating income.
   
• Noninterest expense of $35.2 million for the three months ended September 30, 2019 increased $1.6 million as compared to the same period in 2018. Contributing to the increase were increases of $1.2 million, $291 thousand, $265 thousand, $238 thousand and $222 thousand in salaries and wages, occupancy and bank premises expense, furniture, fixtures and equipment expenses, advertising expense, and data processing expense, respectively. Partially offsetting these increases were decreases of $389 thousand and $371 thousand in due diligence, merger-related and merger integration expenses and other operating expenses, respectively.
   
• The Provision increased by $255 thousand for the three months ended September 30, 2019 to $919 thousand, as compared to $664 thousand for the same period in 2018. The increase in Provision was related to the level of loan and lease growth during the third quarter of 2019 as compared to the negative growth experienced during the same period in 2018. Total portfolio loans and leases increased by $6.1 million during the third quarter of 2019, as compared to an $8.0 million decrease in total portfolio loans and leases for the same period in 2018. Net charge-offs of loans and leases decreased slightly, by $54 thousand for the third quarter of 2019 as compared to the same period in 2018.
   
• The effective tax rate for the third quarter of 2019 increased to 21.20% as compared to 19.60% for the third quarter of 2018. The increase was primarily related to a $281 thousand decrease in net discrete tax benefits for the third quarter of 2019 as compared to the same period in 2018. These discrete items were the result of excess tax benefits from stock-based compensation as well as the re-measurement of deferred tax items related to Tax Reform.

Financial Condition – September 30, 2019 Compared to December 31, 2018

• Total assets as of September 30, 2019 were $4.83 billion, an increase of $176.2 million from December 31, 2018. The increase was primarily due to a $113.6 million increase in portfolio loans and leases, a $99.8 million increase in other assets, and $42.2 million of operating lease right-of-use assets as of September 30, 2019 included on the balance sheet as a result of a required accounting pronouncement adopted in the first quarter of 2019. The $99.8 million increase in other assets was primarily due to a $50.0 million increase in the fair value of interest rate swaps. Partially offsetting these increases was a decrease in available for sale investment securities of $133.3 million.
   
• Available for sale investment securities as of September 30, 2019 totaled $604.2 million, a decrease of $133.3 million from December 31, 2018. The decrease was primarily related to the maturing of $200.0 million short-term U.S. Treasury securities in the first quarter of 2019, partially offset by a $99.0 million increase in mortgage-backed securities.
   
• Total portfolio loans and leases of $3.54 billion as of September 30, 2019 increased by $113.6 million from December 31, 2018, an increase of 3.3%. Increases of $104.9 million, $18.6 million, $14.2 million, $10.9 million and $3.7 million in commercial mortgages, leases, commercial and industrial loans, residential mortgages and consumer loans, respectively, were offset by decreases of $29.4 million and $9.3 million in construction loans and home equity loans and lines, respectively.
   
• The Allowance as of September 30, 2019 was $20.8 million, or 0.59% 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 0.66% as of September 30, 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 0.92% as of September 30, 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.
   
• Deposits of $3.70 billion as of September 30, 2019 increased $99.4 million from December 31, 2018. Increases of $219.1 million, $120.5 million, $114.1 million, $2.8 million, and $1.5 million in wholesale non-maturity deposits, money market accounts, interest-bearing demand accounts, noninterest bearing deposits, and savings accounts, respectively, were offset by decreases of $283.2 million and $75.4 million in in wholesale time deposits and retail time deposits, respectively.
   
• Borrowings of $368.6 million as of September 30, 2019, which include short-term borrowings, long-term FHLB advances, subordinated notes and junior subordinated debentures, decreased $59.3 million from December 31, 2018, primarily due to decreases of $48.9 million and $10.6 million in short-term borrowings and long-term FHLB advances, respectively.
   
• Wealth assets under management, administration, supervision and brokerage (“wealth assets”) totaled $15.61 billion as of September 30, 2019, an increase of $2.18 billion from December 31, 2018. Wealth assets consisted of $9.21 billion of wealth assets where fees are set at fixed amounts and $6.40 billion of wealth assets where fees are predominantly determined based on the market value of the assets held in their accounts as of September 30, 2019, an increase of $1.33 billion and $363.6 million, respectively, from December 31, 2018.
   
• The capital ratios for the Bank and the Corporation, as of September 30, 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 SEC.

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 Nine Months Ended
	September 30, 2019				June 30, 2019				March 31, 2019				December 31, 2018				September 30, 2018				September 30, 2019				September 30, 2018
Consolidated Balance Sheet (selected items)
Interest-bearing deposits with banks	$	86,158			$	49,643			$	29,449			$	34,357			$	35,233
Investment securities		625,452				606,844				578,629				753,628				545,320
Loans held for sale		5,767				6,333				2,884				1,749				4,111
Portfolio loans and leases		3,540,747				3,534,665				3,523,514				3,427,154				3,381,475
Allowance for loan and lease losses ("ALLL")		(20,777	)			(21,182	)			(20,616	)			(19,426	)			(18,684	)
Goodwill and other intangible assets		204,096				205,050				206,006				207,467				208,165
Total assets		4,828,641				4,736,565				4,631,993				4,652,485				4,388,442
Deposits - interest-bearing		2,794,079				2,691,502				2,755,307				2,697,468				2,522,863
Deposits - non-interest-bearing		904,409				940,911				882,310				901,619				834,363
Short-term borrowings		203,471				207,828				124,214				252,367				226,498
Long-term FHLB advances		44,735				47,941				55,407				55,374				72,841
Subordinated notes		98,660				98,616				98,571				98,526				98,482
Jr. subordinated debentures		21,709				21,665				21,622				21,580				21,538
Total liabilities		4,227,706				4,146,410				4,056,886				4,087,781				3,837,017
Total shareholders' equity		600,935				590,155				575,107				564,704				551,425
Average Balance Sheet (selected items)
Interest-bearing deposits with banks	$	48,597			$	37,843			$	32,742			$	38,957			$	37,467			$	39,785			$	37,573
Investment securities		622,336				587,518				569,915				554,265				546,998				593,449				543,948
Loans held for sale		4,375				3,353				1,214				2,005				4,932				2,992				4,072
Portfolio loans and leases		3,528,548				3,520,866				3,476,525				3,397,479				3,374,767				3,508,837				3,337,669
Total interest-earning assets		4,203,856				4,149,580				4,080,396				3,992,706				3,964,164				4,145,063				3,923,262
Goodwill and intangible assets		204,637				205,593				206,716				207,893				207,880				205,641				207,158
Total assets		4,760,074				4,651,625				4,545,129				4,413,000				4,376,148				4,653,064				4,331,605
Deposits - interest-bearing		2,776,226				2,794,854				2,674,194				2,602,412				2,493,213				2,748,798				2,474,254
Short-term borrowings		169,985				68,529				157,652				128,429				208,201				132,100				195,483
Long-term FHLB advances		45,698				52,397				55,385				67,363				81,460				51,125				102,312
Subordinated notes		98,634				98,587				98,542				98,497				98,457				98,588				98,450
Jr. subordinated debentures		21,680				21,637				21,595				21,553				21,511				21,638				21,470
Total interest-bearing liabilities		3,112,223				3,036,004				3,007,368				2,918,254				2,902,842				3,052,249				2,891,969
Total liabilities		4,164,763				4,070,160				3,973,043				3,856,694				3,828,241				4,070,025				3,794,979
Total shareholders' equity		595,311				581,465				572,086				556,306				547,907				583,039				536,626
Income Statement
Net interest income	$	37,398			$	36,611			$	37,647			$	37,987			$	36,729			$	111,656			$	111,484
Provision for loan and lease losses		919				1,627				3,736				2,362				664				6,282				4,831
Noninterest income		19,455				20,221				19,253				18,097				18,274				58,929				57,885
Noninterest expense		35,173				35,188				39,724				34,845				33,592				110,085				105,458
Income tax expense		4,402				4,239				2,764				1,746				4,066				11,405				12,419
Net income		16,359				15,778				10,676				17,131				16,681				42,813				46,661
Net (loss) income attributable to noncontrolling interest		(1	)			(7	)			(1	)			(5	)			(1	)			(9	)			5
Net income attributable to Bryn Mawr Bank Corporation		16,360				15,785				10,677				17,136				16,682				42,822				46,656
Basic earnings per share		0.81				0.78				0.53				0.85				0.82				2.13				2.31
Diluted earnings per share		0.81				0.78				0.53				0.84				0.82				2.12				2.28
Net income (core) (1)		16,360				15,785				14,230				17,167				17,140				46,375				53,453
Basic earnings per share (core) (1)		0.81				0.78				0.71				0.85				0.85				2.30				2.64
Diluted earnings per share (core) (1)		0.81				0.78				0.70				0.84				0.84				2.29				2.61
Dividends paid or accrued per share		0.26				0.26				0.25				0.25				0.25				0.77				0.69
Profitability Indicators
Return on average assets		1.36	%			1.36	%			0.95	%			1.54	%			1.51	%			1.23	%			1.44	%
Return on average equity		10.90	%			10.89	%			7.57	%			12.22	%			12.08	%			9.82	%			11.62	%
Return on tangible equity(1)		17.35	%			17.62	%			12.65	%			20.37	%			20.25	%			15.94	%			19.74	%
Return on tangible equity (core)(1)		17.35	%			17.62	%			16.59	%			20.40	%			20.78	%			17.19	%			22.50	%
Return on average assets (core)(1)		1.36	%			1.36	%			1.27	%			1.54	%			1.55	%			1.33	%			1.65	%
Return on average equity (core)(1)		10.90	%			10.89	%			10.09	%			12.24	%			12.41	%			10.63	%			13.32	%
Tax-equivalent net interest margin		3.54	%			3.55	%			3.75	%			3.79	%			3.69	%			3.61	%			3.81	%
Efficiency ratio(1)		60.19	%			60.23	%			60.26	%			60.35	%			58.75	%			60.23	%			56.12	%
Share Data
Closing share price	$	36.51			$	37.32			$	36.13			$	34.40			$	46.90
Book value per common share	$	29.86			$	29.31			$	28.52			$	28.01			$	27.18
Tangible book value per common share	$	19.75			$	19.16			$	18.34			$	17.75			$	16.95
Price / book value		122.27	%			127.33	%			126.68	%			122.81	%			172.55	%
Price / tangible book value		184.86	%			194.78	%			197.00	%			193.80	%			276.70	%
Weighted average diluted shares outstanding		20,208,630				20,244,409				20,271,661				20,321,283				20,438,376				20,236,331				20,444,075
Shares outstanding, end of period		20,124,193				20,131,854				20,167,729				20,163,816				20,291,416
Wealth Management Information:
Wealth assets under mgmt, administration, supervision and brokerage (2)	$	15,609,786			$	14,815,298			$	14,736,512			$	13,429,544			$	13,913,265
Fees for wealth management services	$	10,826			$	11,510			$	10,392			$	11,017			$	10,343
Capital Ratios(3)
Bryn Mawr Trust Company ("BMTC")
Tier I capital to risk weighted assets ("RWA")		12.16	%			11.83	%			11.30	%			11.42	%			11.55	%
Total capital to RWA		12.74	%			12.42	%			11.87	%			11.99	%			12.10	%
Tier I leverage ratio		9.74	%			9.61	%			9.48	%			9.48	%			9.47	%
Tangible equity ratio (1)		9.75	%			9.58	%			9.34	%			8.95	%			9.29	%
Common equity Tier I capital to RWA		12.16	%			11.83	%			11.30	%			11.42	%			11.55	%
Bryn Mawr Bank Corporation ("BMBC")
Tier I capital to RWA		11.32	%			11.12	%			10.72	%			10.92	%			10.90	%
Total capital to RWA		14.60	%			14.44	%			14.00	%			14.30	%			14.33	%
Tier I leverage ratio		9.07	%			9.04	%			8.99	%			9.06	%			8.94	%
Tangible equity ratio (1)		8.60	%			8.51	%			8.35	%			8.05	%			8.23	%
Common equity Tier I capital to RWA		10.74	%			10.54	%			10.14	%			10.32	%			10.29	%
Asset Quality Indicators
Net loan and lease charge-offs ("NCO"s)	$	1,324			$	1,061			$	2,546			$	1,620			$	1,378			$	4,931			$	3,672
Nonperforming loans and leases ("NPL"s)	$	14,119			$	12,179			$	19,283			$	12,820			$	8,990
Other real estate owned ("OREO")		72				155				84				417				529
Total nonperforming assets ("NPA"s)	$	14,191			$	12,334			$	19,367			$	13,237			$	9,519
Nonperforming loans and leases 30 or more days past due	$	4,940			$	8,224			$	8,489			$	7,765			$	4,906
Performing loans and leases 30 to 89 days past due		5,273				9,466				6,432				5,464				9,145
Performing loans and leases 90 or more days past due		-				-				-				-				-
Total delinquent loans and leases	$	10,213			$	17,690			$	14,921			$	13,229			$	14,051
Delinquent loans and leases to total loans and leases		0.29	%			0.50	%			0.42	%			0.39	%			0.42	%
Delinquent performing loans and leases to total loans and leases		0.15	%			0.27	%			0.18	%			0.16	%			0.27	%
NCOs / average loans and leases (annualized)		0.15	%			0.12	%			0.30	%			0.19	%			0.16	%			0.19	%			0.15	%
NPLs / total portfolio loans and leases		0.40	%			0.34	%			0.55	%			0.37	%			0.27	%
NPAs / total loans and leases and OREO		0.40	%			0.35	%			0.55	%			0.39	%			0.28	%
NPAs / total assets		0.29	%			0.26	%			0.42	%			0.28	%			0.22	%
ALLL / NPLs		147.16	%			173.92	%			106.91	%			151.53	%			207.83	%
ALLL / portfolio loans		0.59	%			0.60	%			0.59	%			0.57	%			0.55	%
ALLL for originated loans and leases / Originated loans and leases (1)		0.66	%			0.68	%			0.68	%			0.67	%			0.68	%
(Total ALLL + Loan mark) / Total Gross portfolio loans and leases (1)		0.92	%			1.00	%			1.03	%			1.08	%			1.28	%
Troubled debt restructurings ("TDR"s) included in NPLs	$	5,755			$	4,190			$	4,057			$	1,217			$	1,208
TDRs in compliance with modified terms		5,069				5,141				5,149				9,745				4,316
Total TDRs	$	10,824			$	9,331			$	9,206			$	10,962			$	5,524
(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)
	September 30, 2019				June 30, 2019				March 31, 2019				December 31, 2018				September 30, 2018
Assets
Cash and due from banks	$	8,582			$	13,742			$	13,656			$	14,099			$	10,121
Interest-bearing deposits with banks		86,158				49,643				29,449				34,357				35,233
Cash and cash equivalents		94,740				63,385				43,105				48,456				45,354
Investment securities, available for sale		604,181				588,119				559,983				737,442				528,064
Investment securities, held to maturity		12,947				10,209				10,457				8,684				8,916
Investment securities, trading		8,324				8,516				8,189				7,502				8,340
Loans held for sale		5,767				6,333				2,884				1,749				4,111
Portfolio loans and leases, originated		3,137,769				3,088,849				3,032,270				2,885,251				2,752,160
Portfolio loans and leases, acquired		402,978				445,816				491,244				541,903				629,315
Total portfolio loans and leases		3,540,747				3,534,665				3,523,514				3,427,154				3,381,475
Less: Allowance for losses on originated loan and leases		(20,675	)			(21,076	)			(20,519	)			(19,329	)			(18,612	)
Less: Allowance for losses on acquired loan and leases		(102	)			(106	)			(97	)			(97	)			(72	)
Total allowance for loan and lease losses		(20,777	)			(21,182	)			(20,616	)			(19,426	)			(18,684	)
Net portfolio loans and leases		3,519,970				3,513,483				3,502,898				3,407,728				3,362,791
Premises and equipment		66,439				68,092				67,279				65,648				63,281
Operating lease right-of-use assets		42,200				43,116				43,985				-				-
Accrued interest receivable		12,746				13,312				13,123				12,585				13,232
Mortgage servicing rights		4,580				4,744				4,910				5,047				5,328
Bank owned life insurance		58,749				58,437				58,138				57,844				57,543
Federal Home Loan Bank ("FHLB") stock		16,148				14,677				10,526				14,530				14,678
Goodwill		184,012				184,012				184,012				184,012				183,864
Intangible assets		20,084				21,038				21,994				23,455				24,301
Other investments		16,683				16,517				16,526				16,526				16,529
Other assets		161,071				122,575				83,984				61,277				52,110
Total assets	$	4,828,641			$	4,736,565			$	4,631,993			$	4,652,485			$	4,388,442
Liabilities
Deposits
Noninterest-bearing	$	904,409			$	940,911			$	882,310			$	901,619			$	834,363
Interest-bearing		2,794,079				2,691,502				2,755,307				2,697,468				2,522,863
Total deposits		3,698,488				3,632,413				3,637,617				3,599,087				3,357,226
Short-term borrowings		203,471				207,828				124,214				252,367				226,498
Long-term FHLB advances		44,735				47,941				55,407				55,374				72,841
Subordinated notes		98,660				98,616				98,571				98,526				98,482
Jr. subordinated debentures		21,709				21,665				21,622				21,580				21,538
Operating lease liabilities		46,506				47,393				48,224				-				-
Accrued interest payable		9,015				8,244				8,674				6,652				7,193
Other liabilities		105,122				82,310				62,557				54,195				53,239
Total liabilities		4,227,706				4,146,410				4,056,886				4,087,781				3,837,017
Shareholders' equity
Common stock		24,646				24,583				24,577				24,545				24,533
Paid-in capital in excess of par value		377,806				376,652				375,655				374,010				373,205
Less: common stock held in treasury, at cost		(81,089	)			(78,583	)			(76,974	)			(75,883	)			(70,437	)
Accumulated other comprehensive income (loss), net of tax		2,698				1,700				(3,278	)			(7,513	)			(13,402	)
Retained earnings		277,568				266,496				255,813				250,230				238,204
Total Bryn Mawr Bank Corporation shareholders' equity		601,629				590,848				575,793				565,389				552,103
Noncontrolling interest		(694	)			(693	)			(686	)			(685	)			(678	)
Total shareholders' equity		600,935				590,155				575,107				564,704				551,425
Total liabilities and shareholders' equity	$	4,828,641			$	4,736,565			$	4,631,993			$	4,652,485			$	4,388,442

Bryn Mawr Bank Corporation
Supplemental Balance Sheet Information (unaudited)
(dollars in thousands)
	Portfolio Loans and Leases as of
	September 30, 2019				June 30, 2019				March 31, 2019				December 31, 2018				September 30, 2018
Commercial mortgages	$	1,762,382			$	1,755,798			$	1,746,695			$	1,657,436			$	1,618,493
Home equity loans and lines		198,030				203,852				204,791				207,351				207,806
Residential mortgages		505,304				506,093				502,379				494,355				467,402
Construction		151,593				152,554				159,761				181,078				178,493
Total real estate loans		2,617,309				2,618,297				2,613,626				2,540,220				2,472,194
Commercial & Industrial		709,808				704,167				705,701				695,584				722,999
Consumer		50,481				49,335				47,821				46,814				47,809
Leases		163,149				162,866				156,366				144,536				138,473
Total non-real estate loans and leases		923,438				916,368				909,888				886,934				909,281
Total portfolio loans and leases	$	3,540,747			$	3,534,665			$	3,523,514			$	3,427,154			$	3,381,475
	Nonperforming Loans and Leases as of
	September 30, 2019				June 30, 2019				March 31, 2019				December 31, 2018				September 30, 2018
Commercial mortgages	$	7,819			$	6,072			$	5,558			$	2,568			$	735
Home equity loans and lines		790				49				6,904				3,616				1,933
Residential mortgages		301				701				2,863				3,452				2,770
Construction		-				-				-				-				291
Total nonperforming real estate loans		8,910				6,822				15,325				9,636				5,729
Commercial & Industrial		4,141				4,495				2,965				2,101				1,782
Consumer		75				60				80				108				117
Leases		993				802				913				975				1,362
Total nonperforming non-real estate loans and leases		5,209				5,357				3,958				3,184				3,261
Total nonperforming portfolio loans and leases	$	14,119			$	12,179			$	19,283			$	12,820			$	8,990
	Net Loan and Lease Charge-Offs (Recoveries) for the Three Months Ended
	September 30, 2019				June 30, 2019				March 31, 2019				December 31, 2018				September 30, 2018
Commercial mortgage	$	656			$	(3	)		$	1,373			$	249			$	56
Home equity loans and lines		(22	)			180				46				107				-
Residential		(7	)			339				329				304				(12	)
Construction		(1	)			(1	)			(1	)			-				-
Total net charge-offs of real estate loans		626				515				1,747				660				44
Commercial & Industrial		8				(18	)			391				298				304
Consumer		181				119				94				147				71
Leases		509				445				314				515				959
Total net charge-offs of non-real estate loans and leases		698				546				799				960				1,334
Total net charge-offs	$	1,324			$	1,061			$	2,546			$	1,620			$	1,378

Bryn Mawr Bank Corporation
Supplemental Balance Sheet Information (unaudited)
(dollars in thousands)
	Investment Securities Available for Sale, at Fair Value
	September 30, 2019				June 30, 2019				March 31, 2019				December 31, 2018				September 30, 2018
U.S. Treasury securities	$	101			$	101			$	100			$	200,013			$	100
Obligations of the U.S. Government and agencies		172,753				192,799				186,746				195,855				190,453
State & political subdivisions - tax-free		6,327				6,700				8,468				11,162				15,629
State & political subdivisions - taxable		-				170				170				170				170
Mortgage-backed securities		388,891				348,975				322,913				289,890				284,421
Collateralized mortgage obligations		35,459				38,724				40,486				39,252				36,193
Other debt securities		650				650				1,100				1,100				1,098
Total investment securities available for sale, at fair value	$	604,181			$	588,119			$	559,983			$	737,442			$	528,064
	Unrealized Gain (Loss) on Investment Securities Available for Sale
	September 30, 2019				June 30, 2019				March 31, 2019				December 31, 2018				September 30, 2018
U.S. Treasury securities	$	1			$	1			$	-			$	(13	)		$	-
Obligations of the U.S. Government and agencies		188				275				(1,334	)			(2,749	)			(5,881	)
State & political subdivisions - tax-free		8				8				(5	)			(39	)			(90	)
State & political subdivisions - taxable		-				-				-				(1	)			(1	)
Mortgage-backed securities		4,605				3,364				(696	)			(4,186	)			(7,584	)
Collateralized mortgage obligations		180				89				(510	)			(898	)			(1,618	)
Other debt securities		-				-				-				-				(2	)
Total unrealized gains (losses) on investment securities available for sale	$	4,982			$	3,737			$	(2,545	)		$	(7,886	)		$	(15,176	)
	Deposits
	September 30, 2019				June 30, 2019				March 31, 2019				December 31, 2018				September 30, 2018
Interest-bearing deposits:
Interest-bearing demand	$	778,809			$	745,134			$	664,683			$	664,749			$	578,243
Money market		983,170				966,596				961,348				862,644				812,027
Savings		248,539				263,830				265,613				247,081				286,266
Retail time deposits		467,346				502,745				531,522				542,702				561,123
Wholesale non-maturity deposits		274,121				100,047				47,744				55,031				24,040
Wholesale time deposits		42,094				113,150				284,397				325,261				261,164
Total interest-bearing deposits		2,794,079				2,691,502				2,755,307				2,697,468				2,522,863
Noninterest-bearing deposits		904,409				940,911				882,310				901,619				834,363
Total deposits	$	3,698,488			$	3,632,413			$	3,637,617			$	3,599,087			$	3,357,226

Bryn Mawr Bank Corporation
Detailed Income Statements (unaudited)
(dollars in thousands, except per share data)
	For the Three Months Ended																				For the Nine Months Ended
	September 30, 2019				June 30, 2019				March 31, 2019				December 31, 2018				September 30, 2018				September 30, 2019				September 30, 2018
Interest income:
Interest and fees on loans and leases	$	45,527			$	44,783			$	44,837			$	44,157			$	42,103			$	135,147			$	124,481
Interest on cash and cash equivalents		143				73				132				83				64				348				181
Interest on investment securities		3,903				3,532				3,499				3,294				3,066				10,934				8,859
Total interest income		49,573				48,388				48,468				47,534				45,233				146,429				133,521
Interest expense:
Interest on deposits		9,510				9,655				8,097				7,048				5,533				27,262				13,504
Interest on short-term borrowings		937				357				943				681				1,096				2,237				2,711
Interest on FHLB advances		243				269				278				331				394				790				1,446
Interest on jr. subordinated debentures		340				352				358				342				337				1,050				946
Interest on subordinated notes		1,145				1,144				1,145				1,145				1,144				3,434				3,430
Total interest expense		12,175				11,777				10,821				9,547				8,504				34,773				22,037
Net interest income		37,398				36,611				37,647				37,987				36,729				111,656				111,484
Provision for loan and lease losses (the "Provision")		919				1,627				3,736				2,362				664				6,282				4,831
Net interest income after Provision		36,479				34,984				33,911				35,625				36,065				105,374				106,653
Noninterest income:
Fees for wealth management services		10,826				11,510				10,392				11,017				10,343				32,728				31,309
Insurance commissions		1,842				1,697				1,672				1,459				1,754				5,211				5,349
Capital markets revenue		2,113				1,489				2,219				1,367				710				5,821				3,481
Service charges on deposits		856				852				808				798				726				2,516				2,191
Loan servicing and other fees		555				553				609				539				559				1,717				1,720
Net gain on sale of loans		674				752				319				1,606				631				1,745				1,677
Net gain on sale of investment securities available for sale		-				-				-				-				-				-				7
Net (loss) gain on sale of other real estate owned		(12	)			-				(24	)			3				5				(36	)			292
Dividends on FHLB and FRB stocks		346				316				411				305				375				1,073				1,316
Other operating income		2,255				3,052				2,847				1,003				3,171				8,154				10,543
Total noninterest income		19,455				20,221				19,253				18,097				18,274				58,929				57,885
Noninterest expense:
Salaries and wages		17,765				17,038				20,901				17,921				16,528				55,704				48,750
Employee benefits		3,288				3,317				4,166				2,977				3,356				10,771				9,941
Occupancy and bank premises		3,008				3,125				3,252				3,135				2,717				9,385				8,464
Furniture, fixtures and equipment		2,335				2,568				2,389				2,370				2,070				7,292				6,037
Advertising		587				504				415				540				349				1,506				1,179
Amortization of intangible assets		954				956				938				997				891				2,848				2,659
(Recovery) impairment of mortgage servicing rights ("MSRs")		(19	)			10				17				101				(23	)			8				(74	)
Due diligence, merger-related and merger integration expenses		-				-				-				-				389				-				7,761
Professional fees		1,044				1,316				1,320				1,526				997				3,680				2,677
Pennsylvania bank shares tax		514				513				409				374				472				1,436				1,418
Data processing		1,377				1,303				1,320				1,340				1,155				4,000				3,602
Other operating expenses		4,320				4,538				4,597				3,564				4,691				13,455				13,044
Total noninterest expense		35,173				35,188				39,724				34,845				33,592				110,085				105,458
Income before income taxes		20,761				20,017				13,440				18,877				20,747				54,218				59,080
Income tax expense		4,402				4,239				2,764				1,746				4,066				11,405				12,419
Net income	$	16,359			$	15,778			$	10,676			$	17,131			$	16,681			$	42,813			$	46,661
Net (loss) income attributable to noncontrolling interest		(1	)			(7	)			(1	)			(5	)			(1	)			(9	)			5
Net income attributable to Bryn Mawr Bank Corporation	$	16,360			$	15,785			$	10,677			$	17,136			$	16,682			$	42,822			$	46,656
Per share data:
Weighted average shares outstanding		20,132,117				20,144,651				20,168,498				20,225,993				20,270,706				20,148,289				20,237,757
Dilutive common shares		76,513				99,758				103,163				95,290				167,670				88,042				206,318
Weighted average diluted shares		20,208,630				20,244,409				20,271,661				20,321,283				20,438,376				20,236,331				20,444,075
Basic earnings per common share	$	0.81			$	0.78			$	0.53			$	0.85			$	0.82			$	2.13			$	2.31
Diluted earnings per common share	$	0.81			$	0.78			$	0.53			$	0.84			$	0.82			$	2.12			$	2.28
Dividends paid or accrued per common share	$	0.26			$	0.26			$	0.25			$	0.25			$	0.25			$	0.77			$	0.69
Effective tax rate		21.20	%			21.18	%			20.57	%			9.25	%			19.60	%			21.04	%			21.02	%

Bryn Mawr Bank Corporation
Tax-Equivalent Net Interest Margin (unaudited)
(dollars in thousands)
		For the Three Months Ended																																				For the Nine Months Ended
		September 30, 2019							June 30, 2019							March 31, 2019							December 31, 2018							September 30, 2018								September 30, 2019							September 30, 2018
		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		$	48,597		$	143		1.17%	$	37,843		$	73		0.77%	$	32,742		$	132		1.64%	$	38,957		$	83		0.85%	$	37,467		$	64		0.68%		$	39,785		$	348		1.17%	$	37,573		$	181		0.64%
Investment securities - available for sale:
Taxable			594,975			3,765		2.51%		560,999			3,400		2.43%		543,687			3,363		2.51%		524,117			3,075		2.33%		514,360			2,910		2.24%			566,742			10,528		2.48%		509,405			8,382		2.20%
Tax-exempt			6,594			36		2.17%		7,530			43		2.29%		9,795			55		2.28%		13,184			70		2.11%		16,056			83		2.05%			7,961			134		2.25%		18,241			276		2.02%
Total investment securities - available for sale			601,569			3,801		2.51%		568,529			3,443		2.43%		553,482			3,418		2.50%		537,301			3,145		2.32%		530,416			2,993		2.24%			574,703			10,662		2.48%		527,646			8,658		2.19%
Investment securities - held to maturity			12,360			80		2.57%		10,417			71		2.73%		8,804			67		3.09%		8,761			63		2.85%		8,378			55		2.60%			10,540			218		2.77%		8,054			171		2.84%
Investment securities - trading			8,407			27		1.27%		8,572			24		1.12%		7,629			22		1.17%		8,203			96		4.64%		8,204			30		1.45%			8,206			73		1.19%		8,248			73		1.18%
Loans and leases *			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%		3,379,699			42,214		4.96%			3,511,829			135,503		5.16%		3,341,741			124,750		4.99%
Total interest-earning assets			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%		3,964,164			45,356		4.54%			4,145,063			146,804		4.74%		3,923,262			133,833		4.56%
Cash and due from banks			12,890							13,725							14,414							13,962							7,587								13,671							8,468
Less: allowance for loan and lease losses			(21,438	)						(20,844	)						(19,887	)						(18,625	)						(19,467	)							(20,729	)						(18,386	)
Other assets			564,766							509,164							470,206							424,957							423,864								515,059							418,261
Total assets		$	4,760,074						$	4,651,625						$	4,545,129						$	4,413,000						$	4,376,148							$	4,653,064						$	4,331,605
Liabilities:
Interest-bearing deposits:
Savings, NOW and market rate deposits		$	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%	$	1,695,214		$	2,425		0.57%		$	1,908,405		$	14,249		1.00%	$	1,719,004		$	5,977		0.46%
Wholesale deposits			299,309			1,729		2.29%		345,782			2,143		2.49%		342,696			2,012		2.38%		346,134			1,986		2.28%		256,347			1,329		2.06%			329,103			5,884		2.39%		221,073			3,035		1.84%
Retail time deposits			480,736			2,336		1.93%		520,317			2,472		1.91%		533,395			2,321		1.76%		552,213			2,179		1.57%		541,652			1,779		1.30%			511,290			7,129		1.86%		534,177			4,492		1.12%
Total interest-bearing deposits			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%		2,493,213			5,533		0.88%			2,748,798			27,262		1.33%		2,474,254			13,504		0.73%
Borrowings:
Short-term borrowings			169,985			937		2.19%		68,529			357		2.09%		157,652			943		2.43%		128,429			681		2.10%		208,201			1,096		2.09%			132,100			2,237		2.26%		195,483			2,711		1.85%
Long-term FHLB advances			45,698			243		2.11%		52,397			269		2.06%		55,385			278		2.04%		67,363			331		1.95%		81,460			394		1.92%			51,125			790		2.07%		102,312			1,446		1.89%
Subordinated notes			98,634			1,145		4.61%		98,587			1,144		4.65%		98,542			1,145		4.71%		98,497			1,145		4.61%		98,457			1,144		4.61%			98,588			3,434		4.66%		98,450			3,430		4.66%
Jr. subordinated debt			21,680			340		6.22%		21,637			352		6.53%		21,595			358		6.72%		21,553			342		6.30%		21,511			337		6.22%			21,638			1,050		6.49%		21,470			946		5.89%
Total borrowings			335,997			2,665		3.15%		241,150			2,122		3.53%		333,174			2,724		3.32%		315,842			2,499		3.14%		409,629			2,971		2.88%			303,451			7,511		3.31%		417,715			8,533		2.73%
Total interest-bearing liabilities			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%		2,902,842			8,504		1.16%			3,052,249			34,773		1.52%		2,891,969			22,037		1.02%
Noninterest-bearing deposits			903,314							909,945							871,726							878,047							866,314								895,111							849,247
Other liabilities			149,226							124,211							93,949							60,393							59,085								122,665							53,763
Total noninterest-bearing liabilities			1,052,540							1,034,156							965,675							938,440							925,399								1,017,776							903,010
Total liabilities			4,164,763							4,070,160							3,973,043							3,856,694							3,828,241								4,070,025							3,794,979
Shareholders' equity			595,311							581,465							572,086							556,306							547,907								583,039							536,626
Total liabilities and shareholders' equity		$	4,760,074						$	4,651,625						$	4,545,129						$	4,413,000						$	4,376,148							$	4,653,064						$	4,331,605
Net interest spread								3.14%							3.13%							3.37%							3.44%							3.38%								3.22%							3.54%
Effect of noninterest-bearing sources								0.40%							0.42%							0.38%							0.35%							0.31%								0.39%							0.27%
Tax-equivalent net interest margin					$	37,518		3.54%				$	36,737		3.55%				$	37,776		3.75%				$	38,114		3.79%				$	36,852		3.69%					$	112,031		3.61%				$	111,796		3.81%
Tax-equivalent adjustment					$	120		0.01%				$	126		0.01%				$	129		0.01%				$	127		0.01%				$	123		0.01%					$	375		0.01%				$	312		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.
Supplemental Information Regarding Accretion of Fair Value Marks
(dollars in thousands)		Interest			Increase (Decrease)			Effect on Yield or Rate	Interest			Increase (Decrease)			Effect on Yield or Rate	Interest			Increase (Decrease)			Effect on Yield or Rate	Interest			Increase (Decrease)			Effect on Yield or Rate				Increase (Decrease)			Effect on Yield or Rate					Increase (Decrease)			Effect on Yield or Rate				Increase (Decrease)			Effect on Yield or Rate
Loans and leases		Income			$	1,501		0.17%				$	1,193		0.14%				$	1,997		0.23%				$	2,492		0.29%				$	1,464		0.17%					$	4,691		0.18%				$	6,111		0.24%
Retail time deposits		Expense				(151	)	(0.12)%					(171	)	(0.13)%					(222	)	(0.17)%					(279	)	(0.20)%					(311	)	(0.23)%						(544	)	(0.14)%					(1,030	)	0.26)%
Long-term FHLB advances		Expense				34		0.30%					34		0.26%					33		0.24%					34		0.20%					32		0.16%						101		0.26%					72		0.09%
Jr. subordinated debt		Expense				44		0.81%					43		0.80%					42		0.79%					42		0.77%					41		0.76%						129		0.80%					122		0.76%
Net interest income from fair value marks					$	1,574						$	1,287						$	2,144						$	2,695						$	1,702							$	5,005						$	6,947
Purchase accounting effect on tax-equivalent margin								0.15%							0.12%							0.21%							0.27%							0.17%								0.16%							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 Nine Months Ended
	September 30, 2019				June 30, 2019				March 31, 2019				December 31, 2018				September 30, 2018				September 30, 2019				September 30, 2018
Reconciliation of Net Income to Net Income (core):
Net income attributable to BMBC (a GAAP measure)	$	16,360			$	15,785			$	10,677			$	17,136			$	16,682			$	42,822			$	46,656
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		-				-				-				-				307				-				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				151				-				672
Net income (core) (a non-GAAP measure)	$	16,360			$	15,785			$	14,230			$	17,167			$	17,140			$	46,375			$	53,453
Calculation of Basic and Diluted Earnings per Common Share (core):
Weighted average common shares outstanding		20,132,117				20,144,651				20,168,498				20,225,993				20,270,706				20,148,289				20,237,757
Dilutive common shares		76,513				99,758				103,163				95,290				167,670				88,042				206,318
Weighted average diluted shares		20,208,630				20,244,409				20,271,661				20,321,283				20,438,376				20,236,331				20,444,075
Basic earnings per common share (core) (a non-GAAP measure)	$	0.81			$	0.78			$	0.71			$	0.85			$	0.85			$	2.30			$	2.64
Diluted earnings per common share (core) (a non-GAAP measure)	$	0.81			$	0.78			$	0.70			$	0.84			$	0.84			$	2.29			$	2.61
Calculation of Return on Average Tangible Equity:
Net income attributable to BMBC (a GAAP measure)	$	16,360			$	15,785			$	10,677			$	17,136			$	16,682			$	42,822			$	46,656
Add: Tax-effected amortization and impairment of intangible assets		754				755				741				787				705				2,250				2,101
Net tangible income (numerator)	$	17,114			$	16,540			$	11,418			$	17,923			$	17,387			$	45,072			$	48,757
Average shareholders' equity	$	595,311			$	581,465			$	572,086			$	556,306			$	547,907			$	583,039			$	536,626
Less: Average Noncontrolling interest		693				688				685				681				678				689				684
Less: Average goodwill and intangible assets		(204,637	)			(205,593	)			(206,716	)			(207,893	)			(207,880	)			(205,641	)			(207,158	)
Net average tangible equity (denominator)	$	391,367			$	376,560			$	366,055			$	349,094			$	340,705			$	378,087			$	330,152
Return on tangible equity (a non-GAAP measure)		17.35	%			17.62	%			12.65	%			20.37	%			20.25	%			15.94	%			19.74	%
Calculation of Return on Average Tangible Equity (core):
Net income (core) (a non-GAAP measure)	$	16,360			$	15,785			$	14,230			$	17,167			$	17,140			$	46,375			$	53,453
Add: Tax-effected amortization and impairment of intangible assets		754				755				741				787				705				2,250				2,101
Net tangible income (core) (numerator)	$	17,114			$	16,540			$	14,971			$	17,954			$	17,845			$	48,625			$	55,554
Average shareholders' equity	$	595,311			$	581,465			$	572,086			$	556,306			$	547,907			$	583,039			$	536,626
Less: Average Noncontrolling interest		693				688				685				681				678				689				684
Less: Average goodwill and intangible assets		(204,637	)			(205,593	)			(206,716	)			(207,893	)			(207,880	)			(205,641	)			(207,158	)
Net average tangible equity (denominator)	$	391,367			$	376,560			$	366,055			$	349,094			$	340,705			$	378,087			$	330,152
Return on tangible equity (core) (a non-GAAP measure)		17.35	%			17.62	%			16.59	%			20.40	%			20.78	%			17.19	%			22.50	%
Calculation of Tangible Equity Ratio (BMBC):
Total shareholders' equity	$	600,935			$	590,155			$	575,107			$	564,704			$	551,425
Less: Noncontrolling interest		694				693				686				685				678
Less: Goodwill and intangible assets		(204,096	)			(205,050	)			(206,006	)			(207,467	)			(208,165	)
Net tangible equity (numerator)	$	397,533			$	385,798			$	369,787			$	357,922			$	343,938
Total assets	$	4,828,641			$	4,736,565			$	4,631,993			$	4,652,485			$	4,388,442
Less: Goodwill and intangible assets		(204,096	)			(205,050	)			(206,006	)			(207,467	)			(208,165	)
Tangible assets (denominator)	$	4,624,545			$	4,531,515			$	4,425,987			$	4,445,018			$	4,180,277
Tangible equity ratio (BMBC)(1)		8.60	%			8.51	%			8.35	%			8.05	%			8.23	%
Calculation of Tangible Equity Ratio (BMTC):
Total shareholders' equity	$	641,565			$	625,464			$	605,985			$	591,695			$	582,698
Less: Noncontrolling interest		694				693				686				685				678
Less: Goodwill and intangible assets		(191,572	)			(192,450	)			(193,329	)			(194,715	)			(195,337	)
Net tangible equity (numerator)	$	450,687			$	433,707			$	413,342			$	397,665			$	388,039
Total assets	$	4,813,704			$	4,721,394			$	4,616,724			$	4,637,481			$	4,372,590
Less: Goodwill and intangible assets		(191,572	)			(192,450	)			(193,329	)			(194,715	)			(195,337	)
Tangible assets (denominator)	$	4,622,132			$	4,528,944			$	4,423,395			$	4,442,766			$	4,177,253
Tangible equity ratio (BMTC)(1)		9.75	%			9.58	%			9.34	%			8.95	%			9.29	%
Calculation of Return on Average Assets (core)
Return on average assets (GAAP)		1.36	%			1.36	%			0.95	%			1.54	%			1.51	%			1.23	%			1.44	%
Effect of adjustment to GAAP net income to core net income		0.00	%			0.00	%			0.32	%			0.00	%			0.04	%			0.10	%			0.21	%
Return on average assets (core)		1.36	%			1.36	%			1.27	%			1.54	%			1.55	%			1.33	%			1.65	%
Calculation of Return on Average Equity (core)
Return on average equity (GAAP)		10.90	%			10.89	%			7.57	%			12.22	%			12.08	%			9.82	%			11.62	%
Effect of adjustment to GAAP net income to core net income		0.00	%			0.00	%			2.52	%			0.02	%			0.33	%			0.81	%			1.70	%
Return on average equity (core)		10.90	%			10.89	%			10.09	%			12.24	%			12.41	%			10.63	%			13.32	%
Calculation of Tax-equivalent net interest margin adjusting for the impact of purchase accounting:
Tax-equivalent net interest margin		3.54	%			3.55	%			3.75	%			3.79	%			3.69	%			3.61	%			3.81	%
Effect of fair value marks		0.15	%			0.12	%			0.21	%			0.27	%			0.17	%			0.16	%			0.24	%
Tax-equivalent net interest margin adjusting for the impact of purchase accounting		3.39	%			3.43	%			3.54	%			3.52	%			3.52	%			3.45	%			3.57	%
(1) Capital Ratios for the current quarter are to be considered preliminary until the Call Reports are filed.
Calculation of Tax-equivalent net interest income adjusting for the impact of purchase accounting:
Tax-equivalent net interest income	$	37,518			$	36,737			$	37,776			$	38,114			$	36,852
Effect of fair value marks		1,574				1,287				2,144				2,695				1,702
Tax-equivalent net interest income adjusting for the impact of purchase accounting	$	35,944			$	35,450			$	35,632			$	35,419			$	35,150
Calculation of Efficiency Ratio:
Noninterest expense	$	35,173			$	35,188			$	39,724			$	34,845			$	33,592			$	110,085			$	105,458
Less: certain noninterest expense items*:
Amortization of intangibles		(954	)			(956	)			(938	)			(997	)			(891	)			(2,848	)			(2,659	)
Due diligence, merger-related and merger integration expenses		-				-				-				-				(389	)			-				(7,761	)
Voluntary years of service incentive program expenses		-				-				(4,498	)			-				-				(4,498	)			-
Noninterest expense (adjusted) (numerator)	$	34,219			$	34,232			$	34,288			$	33,848			$	32,312			$	102,739			$	95,038
Noninterest income	$	19,455			$	20,221			$	19,253			$	18,097			$	18,274			$	58,929			$	57,885
Less: non-core noninterest income items:
Gain on sale of investment securities available for sale		-				-				-				-				-				-				(7	)
Noninterest income (core)	$	19,455			$	20,221			$	19,253			$	18,097			$	18,274			$	58,929			$	57,878
Net interest income		37,398				36,611				37,647				37,987				36,729				111,656				111,484
Noninterest income (core) and net interest income (denominator)	$	56,853			$	56,832			$	56,900			$	56,084			$	55,003			$	170,585			$	169,362
Efficiency ratio		60.19	%			60.23	%			60.26	%			60.35	%			58.75	%			60.23	%			56.12	%
Supplemental Loan and Allowance Information Used to Calculate Non-GAAP Measures
Total Allowance	$	20,777			$	21,182			$	20,616			$	19,426			$	18,684
Less: Allowance on acquired loans		102				106				97				97				72
Allowance on originated loans and leases	$	20,675			$	21,076			$	20,519			$	19,329			$	18,612
Total Allowance	$	20,777			$	21,182			$	20,616			$	19,426			$	18,684
Loan mark on acquired loans		11,948				14,174				15,841				17,822				24,964
Total Allowance + Loan mark	$	32,725			$	35,356			$	36,457			$	37,248			$	43,648
Total Portfolio loans and leases	$	3,540,747			$	3,534,665			$	3,523,514			$	3,427,154			$	3,381,475
Less: Originated loans and leases		3,137,769				3,088,849				3,032,270				2,885,251				2,752,160
Net acquired loans	$	402,978			$	445,816			$	491,244			$	541,903			$	629,315
Add: Loan mark on acquired loans		11,948				14,174				15,841				17,822				24,964
Gross acquired loans (excludes loan mark)	$	414,926			$	459,990			$	507,085			$	559,725			$	654,279
Originated loans and leases		3,137,769				3,088,849				3,032,270				2,885,251				2,752,160
Total Gross portfolio loans and leases	$	3,552,695			$	3,548,839			$	3,539,355			$	3,444,976			$	3,406,439
* 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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