BRYN MAWR, Pa., Jan. 16, 2020 (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 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.

FOR MORE INFORMATION CONTACT

Frank Leto, President, CEO

610-581-4730

Mike Harrington, CFO

610-526-2466

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
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
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
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) income 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 common 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)
		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
		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	%
Supplemental Information Regarding Accretion of Fair Value Marks
		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		Interest			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			$	1,027		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	%
* 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
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	%
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		0.00	%			0.00	%			0.00	%			0.32	%			0.00	%			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		0.00	%			0.00	%			0.00	%			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.
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	%
* 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.
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