BRYN MAWR, Pa., April 20, 2020 (GLOBE NEWSWIRE) -- Driven by an increase in provision for credit losses on loans and leases reflecting the impact of the adverse economic outlook due to the COVID-19 pandemic on estimated lifetime losses under the new Current Expected Credit Loss standard (“CECL”), Bryn Mawr Bank Corporation (NASDAQ: BMTC) (the “Corporation”), parent of The Bryn Mawr Trust Company (the “Bank”), today reported a net loss of $11.2 million, or $(0.56) diluted earnings per share for the three months ended March 31, 2020, as compared to net income of $16.4 million, or $0.81 diluted earnings per share, for the three months ended December 31, 2019, and $10.7 million, or $0.53 diluted earnings per share, for the three months ended March 31, 2019.

As detailed in the appendix to this earnings release, management calculates core net income, a non-GAAP measure, which excludes one-time costs associated with our voluntary Years of Service Incentive Program. There were no meaningful non-core income or expense items for the three months ended March 31, 2020 or December 31, 2019. Core net income for the three months ended March 31, 2019 was $14.2 million, or $0.70 diluted earnings per share. A reconciliation of core net income and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release.

“As we all navigate the current challenges resulting from the COVID-19 pandemic, BMT remains focused on the safety of our people and providing our customers uninterrupted service. We are committed to assisting our small business community through our active participation in the SBA’s Paycheck Protection Program and our employees are working tirelessly to process applications and fund loans under the program,” commented Frank Leto, President and Chief Executive Officer, continuing, “The banking industry, under the new loan loss reserve guidelines, must take a forward-looking approach to the economy as a predictor of future loan losses. BMT’s historical loan losses have been very strong compared to our peers and credit quality did not materially deteriorate in the first quarter, however under this new guidance we must look out several years and reserve for potential losses now. This environment of uncertainly is expected to persist throughout 2020 and new economic data could indicate increases or reductions in our loan loss reserves. That said, the fundamentals of the Bank were strong as we entered this unprecedented time. Setting aside the provision for credit losses, we performed well in the first quarter and this speaks to our solid foundation supported by a diversified earnings profile, a strong capital base designed to withstand a stressed environment and robust sources of liquidity. This foundation coupled with our amazing team of professionals leave us well positioned to face any challenges and volatility from the economic environment,” Mr. Leto concluded.

On April 20, 2020, the Board of Directors of the Corporation declared a quarterly dividend of $0.26 per share, payable June 1, 2020 to shareholders of record as of April 30, 2020.

SIGNIFICANT ITEMS OF NOTE

Results of Operations – First Quarter 2020 Compared to Fourth Quarter 2019

• A net loss of $11.2 million, or $(0.56) diluted earnings per share for the three months ended March 31, 2020 as compared to net income of $16.4 million, or $0.81 diluted earnings per share, for the three months ended December 31, 2019, was primarily the result of a $30.1 million increase in provision for credit losses on loans and leases, as calculated under the CECL framework, driven by the COVID-19 pandemic. Other factors impacting net income included a $348 thousand increase in net interest income and decreases of $5.0 million and $7.2 million in noninterest income and income tax expense, respectively, for the three months ended March 31, 2020 as compared to the three months ended December 31, 2019.
   
• Net interest income for the three months ended March 31, 2020 was $36.3 million, an increase of $348 thousand over the linked quarter. Tax-equivalent net interest income for the three months ended March 31, 2020 was $36.4 million, an increase of $344 thousand over the linked quarter. Tax-equivalent net interest income for the first quarter of 2020 was positively impacted by the accretion of purchase accounting fair value marks of $949 thousand as compared to $1.1 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 March 31, 2020 was $35.5 million, an increase of $478 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 decreases of $1.1 million and $102 thousand in interest paid on deposits and interest expense on short-term borrowings, respectively, partially offset by decreases of $311 thousand and $274 thousand in tax-equivalent interest and fees earned on loans and leases and tax-equivalent interest income on available for sale investment securities, respectively, for the three months ended March 31, 2020 as compared to the linked quarter ended December 31, 2019.
  
  Interest expense on deposits for the three months ended March 31, 2020 decreased $1.0 million over the linked quarter. The decrease was primarily due to a 15 basis point decrease in the tax-equivalent rate paid on average interest-bearing deposits for the three months ended March 31, 2020 as compared to the linked quarter. The effect of the decrease in the tax-equivalent rate paid was partially offset by an increase of $54.7 million in average interest-bearing deposits for the three months ended March 31, 2020 as compared to the linked quarter.
  
  Interest expense on short-term borrowings for the three months ended March 31, 2020 decreased $102 thousand over the linked quarter. The decrease was primarily due to a 51 basis point decrease in the rate paid as compared to the linked quarter. The effect of the decrease in rate paid was partially offset by an increase of $19.0 million in average short-term borrowings as compared to the linked quarter.
  
  Tax-equivalent interest and fees earned on loans and leases for the three months ended March 31, 2020 decreased $428 thousand as compared to the linked quarter. The decrease was primarily due to a 16 basis point decrease in the tax-equivalent yield on average loans and leases, driven by the current interest rate environment, for the three months ended March 31, 2020 as compared to the linked quarter. The effect of the decrease in the tax-equivalent yield was partially offset by an increase of $139.8 million in average loans and leases for the three months ended March 31, 2020 as compared to the linked quarter.
  
  Tax-equivalent interest income on available for sale investment securities for the three months ended March 31, 2020 decreased $274 thousand as compared to the linked quarter. Average available for sale investment securities decreased $51.1 million over the linked quarter and experienced a six basis point increase in the tax-equivalent yield.

• The tax-equivalent net interest margin was 3.38% for the three months ended March 31, 2020 as compared to 3.36% 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 3.29% for the three months ended March 31, 2020 as compared to 3.26% 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 $18.3 million for the three months ended March 31, 2020 represented a $5.0 million decrease over the linked quarter. The decrease was primarily due to decreases of $3.1 million, $1.6 million, and $504 thousand in capital markets revenue, other operating income, and fees for wealth management services, respectively. The decrease in capital markets revenue was primarily due to higher volume and size of interest rate swap transactions with commercial loan customers for the three months ended December 31, 2019 as compared to the current quarter. The $1.6 million decrease in other operating income was primarily due to a $978 thousand loss on trading securities recorded in the first quarter of 2020 due to market fluctuations affecting the Corporation's executive and director supplemental retirement plan assets. The decrease in fees for wealth management services was primarily related to the impact of the decline in the market value of wealth assets under management, administration, supervision and brokerage (“wealth assets”) resulting from the volatility in the markets seen in the first quarter of 2020.
   
• Noninterest expense of $36.4 million for the three months ended March 31, 2020 was relatively unchanged, decreasing $12 thousand, as compared to the linked quarter. Decreases of $1.7 million, $386 thousand, $198 thousand, and $191 thousand in salaries and wages, professional fees, advertising expense, and occupancy and bank premises expense, respectively, were partially offset by increases of $1.5 million, $815 thousand, and $218 thousand in other operating expense, employee benefits and impairment of mortgage servicing rights, respectively. Included in other operating expense for the three months ended March 31, 2020 was a $3.0 million provision for credit losses on off-balance sheet credit exposures, an increase of $2.8 million as compared to the three months ended December 31, 2019, primarily driven by the adverse economic impacts of the COVID-19 pandemic as well as the Corporation's adoption of CECL.
   
• The provision for credit losses on loans and leases of $32.3 million for the three months ended March 31, 2020, which was calculated under CECL, effective January 1, 2020, increased $30.1 million as compared to $2.2 million for the three months ended December 31, 2019. The significant increase was driven by the current and forward-looking adverse economic impacts of the COVID-19 pandemic included in the estimation of expected credit losses on loans and leases. Net loan and lease charge-offs for the first quarter of 2020 totaled $4.1 million as compared to $400 thousand for the fourth quarter of 2019. The increase in net charge-offs was primarily due to an increase of $1.8 million in charge-offs on leases during the three months ended March 31, 2020, and a $1.1 million recovery on a commercial real estate loan during the three months ended December 31, 2019.
   
• The effective tax rate for the first quarter of 2020 increased to 20.94% as compared to 20.41% for the fourth quarter of 2019.

Results of Operations – First Quarter 2020 Compared to First Quarter 2019

• A net loss of $11.2 million, or $(0.56) diluted earnings per share for the three months ended March 31, 2020 as compared to net income of $10.7 million, or $0.53 diluted earnings per share, for the three months ended March 31, 2019, was primarily the result of a $28.6 million increase in provision for credit losses on loans and leases, as calculated under the CECL framework, driven by the COVID-19 pandemic. Other factors impacting net income included decreases of $1.3 million, $953 thousand, $3.3 million, and $5.7 million in net interest income, noninterest income, noninterest expense, and income tax expense, respectively, for the three months ended March 31, 2020 as compared to the three months ended March 31, 2019.
   
• Net interest income for the three months ended March 31, 2020 was $36.3 million, a decrease of $1.3 million as compared to the same period in 2019. Tax-equivalent net interest income for the three months ended March 31, 2020 was $36.4 million, a decrease of $1.3 million as compared to the same period in 2019. Tax-equivalent net interest income for the first quarter of 2020 was positively impacted by the accretion of purchase accounting fair value marks of $949 thousand as compared to $2.1 million for the same period in 2019. Excluding the effects of these purchase accounting fair value marks, the adjusted tax-equivalent net interest income for the three months ended March 31, 2020 was $35.5 million, a decrease of $141 thousand as compared to the same period in 2019. 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 $973 thousand and $325 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 $564 thousand and $490 thousand in interest paid on deposits and interest expense on short-term borrowings, respectively, for the three months ended March 31, 2020 as compared to the same period in 2019.
  
  Tax-equivalent interest and fees earned on loans and leases for the three months ended March 31, 2020 decreased $2.1 million as compared to the same period in 2019. The decrease was primarily due to a 62 basis point decrease in the tax-equivalent yield on average loans and leases, driven by the current interest rate environment, for the three months ended March 31, 2020 as compared to the same period in 2019. The effect of the decrease in the tax-equivalent yield was partially offset by an increase of $260.6 million in average loans and leases for the three months ended March 31, 2020 as compared to same period in 2019.
  
  Tax-equivalent interest income on available for sale investment securities for the three months ended March 31, 2020 decreased $325 thousand as compared to the same period in 2019. Average available for sale investment securities decreased by $32.3 million and experienced an 11 basis point tax-equivalent yield increase as compared to the same period in 2019.
  
  Interest expense on deposits for the three months ended March 31, 2020 decreased $460 thousand as compared to the same period in 2019. The decrease was primarily due to a 15 basis point decrease in the tax-equivalent rate paid on average interest-bearing deposits for the three months ended March 31, 2020 as compared  to the same period in 2019. The effect of the decrease in the tax-equivalent rate paid was partially offset by an increase of $179.5 million in average interest-bearing deposits for the three months ended March 31, 2020 as compared to the same period in 2019.
  
  Interest expense on short-term borrowings for the three months ended March 31, 2020 decreased $490 thousand as compared to the same period in 2019. Average short-term borrowings decreased $17.1 million coupled with a 113 basis point decrease in the rate paid for the three months ended March 31, 2020 as compared to the same period in 2019.

• The tax-equivalent net interest margin was 3.38% for the three months ended March 31, 2020 as compared to 3.75% for the same period in 2019. Adjusting for the impacts of the accretion of purchase accounting fair value marks, the adjusted tax-equivalent net interest margin was 3.29% and 3.54% for three months ended March 31, 2020 and 2019, 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 $18.3 million for the three months ended March 31, 2020 represented a $953 thousand decrease over the same period in 2019. The decrease was primarily due to decreases of $2.3 million, $148 thousand, and $139 thousand in other operating income, loan servicing and other fees, and insurance commissions, respectively, partially offset by increases of $776 thousand, $463 thousand, $172 thousand, and $142 thousand in fees for wealth management services, net gain on sale of loans, net gain on sale of other real estate owned, and capital markets revenue, respectively. The $2.3 million decrease in other operating income was primarily due to a $978 thousand loss on trading securities recorded in the first quarter of 2020, as compared to a $732 thousand gain on trading securities recorded in the first quarter of 2019, due to market fluctuations affecting the Corporation's executive and director supplemental retirement plan assets.
   
• Noninterest expense of $36.4 million for the three months ended March 31, 2020 represented a $3.3 million decrease over the same period in 2019. Contributing to the decrease were decreases of $3.9 million, $666 thousand, $293 thousand, and $237 thousand in salaries and wages, employee benefits, Pennsylvania bank shares tax expense, and occupancy and bank premises expense, respectively, partially offset by an increase of $1.5 million in other operating expense. The decreases in salaries and wages and employee benefits was largely driven by the $4.5 million one-time expense from the voluntary Years of Service Incentive Program recorded in the first quarter of 2019. Included in other operating expense for the three months ended March 31, 2020 was a $3.0 million provision for credit losses on off-balance sheet credit exposures, an increase of $3.1 million as compared to the same period in 2019, primarily driven by the adverse economic impacts of the COVID-19 pandemic as well as the Corporation’s adoption of CECL.
   
• The provision for credit losses on loans and leases of $32.3 million for the three months ended March 31, 2020, which was calculated under CECL, effective January 1, 2020, increased $28.6 million as compared to $3.7 million for the three months ended March 31, 2019. The significant increase was driven by the current and forward-looking adverse economic impacts of the COVID-19 pandemic included in the estimation of expected credit losses on loans and leases. Net loan and lease charge-offs for the first quarter of 2020 totaled $4.1 million as compared to $2.5 million for the first quarter of 2019.
   
• The effective tax rate for the first quarter of 2020 increased to 20.94% as compared to 20.57% for the first quarter of 2019.

Financial Condition – March 31, 2020 Compared to December 31, 2019

• Total assets as of March 31, 2020 were $4.92 billion, a decrease of $340.2 million from December 31, 2019. The decrease was primarily due to the $489.5 million decrease in available for sale investment securities discussed in the bullet point below, partially offset by the $77.9 million increase in portfolio loans and leases discussed in the bullet point below and $87.1 million increase in other assets driven by an $86.0 million increase in the fair value of interest rate swaps.
   
• Available for sale investment securities as of March 31, 2020 totaled $516.5 million, a decrease of $489.5 million from December 31, 2019. The decrease was primarily due to the maturing, in January 2020, of $500.0 million of short-term U.S. Treasury securities included on the balance sheet as of December 31, 2019.
   
• Total portfolio loans and leases of $3.77 billion as of March 31, 2020 increased by $77.9 million from December 31, 2019, an increase of 2.1%. Increases of $59.1 million, $18.9 million, and $17.2 million in commercial and industrial loans, construction loans, and commercial real estate loans (non-owner occupied), respectively, were partially offset by decreases of $15.0 million and $11.3 million in home equity lines of credit and consumer loans, respectively. In conjunction with the adoption of CECL, the Corporation has revised its portfolio segmentation to align with the methodology applied in determining the allowance for credit losses (“ACL”) for loans and leases under CECL, which is based on Federal call report codes which classify loans based on the primary collateral supporting the loan. Portfolio segmentation prior to the adoption of CECL was based on product type or purpose. As such, certain reclassifications were made to conform previous years to the current year's presentation.
   
• The ACL on loans and leases was $22.6 million as of December 31, 2019. Effective January 1, 2020, the Corporation adopted CECL and recognized an increase in the ACL on loans and leases of approximately $3.2 million, as a cumulative effect of a change in accounting principle, with a corresponding decrease, net of tax, in retained earnings. The ACL on loans and leases was $54.1 million as of March 31, 2019, an increase of $31.5 million as compared to December 31, 2019. The significant increase was driven by the current and forward-looking adverse economic impacts of the COVID-19 pandemic included in the estimation of expected credit losses on loans and leases as of March 31, 2020 as compared to our initial adoption of CECL.
   
• Deposits of $3.78 billion as of March 31, 2020 decreased $63.3 million from December 31, 2019. A decrease of $194.8 million in interest-bearing demand accounts was partially offset by increases of $29.7 million, $27.5 million, $27.3 million, $24.2 million, and $21.0 million in noninterest bearing deposits, money market accounts, savings accounts, wholesale time deposits, and wholesale non-maturity deposits, respectively.
   
• Borrowings of $329.9 million as of March 31, 2020, which include short-term borrowings, long-term FHLB advances, subordinated notes and junior subordinated debentures decreased $336.1 million from December 31, 2019, primarily due to a decrease of $331.2 million in short-term borrowings.
   
• Wealth assets totaled $15.59 billion as of March 31, 2020, a decrease of $954.3 million from December 31, 2019. The decrease in wealth assets was primarily the result of the volatility in the markets experienced in the first quarter of 2020, partially offset by additions through new business during the quarter. As of March 31, 2020, wealth assets consisted of $9.59 billion of wealth assets where fees are set at fixed amounts, an increase of $20.7 million from December 31, 2019, and $6.00 billion of wealth assets where fees are predominantly determined based on the market value of the assets held in their accounts, a decrease of $975.0 million from December 31, 2019.
   
• The capital ratios for the Bank and the Corporation, as of March 31, 2020, 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.” In March 2020, the U.S. banking agencies issued an interim final rule that provides banking organizations with an alternative option to delay for two years an estimate of CECL’s effect on regulatory capital, relative to the incurred loss methodology’s effect on regulatory capital, followed by a three-year transition period. The March 31, 2020 ratios reflect the Corporation's planned election of the five-year transition provision.

OTHER MATTERS

Given the uncertainty and potential volatility of the COVID-19 pandemic on our business and operations in 2020, the Corporation is withdrawing the 2020 targets and financial outlook that were issued, and furnished to the Securities and Exchange Commission on Form 8-K, on February 12, 2020.

EARNINGS CONFERENCE CALL

The Corporation will hold an earnings conference call at 8:30 a.m. Eastern Time on Tuesday, April 21, 2020. Interested parties may participate by calling 1-888-317-6016.  A taped replay of the conference call will be available one hour after the conclusion of the call and will remain available through 9:00 a.m. Eastern Time on Thursday, May 21, 2020.  This recording may be obtained by calling 1-877-344-7529, referring to conference number 10141874.

The Corporation will simultaneously broadcast the earnings conference call live over the Internet through a webcast on the investor relations portion of the Corporation’s website. To access the call via the Internet, please visit the website at http://services.choruscall.com/links/bmtc200421.html. An online archive of the webcast will be available within one hour of the conclusion of the earnings conference call.

The Corporation’s decision to hold an earnings conference call for the first quarter of 2020 is not indicative of the Corporation’s future plans with respect to earnings conference calls, and decisions regarding whether to continue holding earnings conference calls will be made at a future date.

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. The COVID-19 pandemic is adversely affecting us, our customers, counterparties, employees, and third-party service providers, and the ultimate extent of the impacts on our business, financial position, results of operations, liquidity, and prospects is uncertain. Continued deterioration in general business and economic conditions, including further increases in unemployment rates, or turbulence in domestic or global financial markets could adversely affect our revenues and the values of our assets and liabilities, reduce the availability of funding, lead to a tightening of credit, and further increase stock price volatility. In addition, changes to statutes, regulations, or regulatory policies or practices as a result of, or in response to COVID-19, could affect us in substantial and unpredictable ways. Other 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 accounting standards, including ASU 2016-13 (Topic 326), “Measurement of Credit Losses on Financial Instruments,” commonly referenced as the Current Expected Credit Loss model, which has changed how we estimate credit losses and may result in further increases in the required level of our allowance for credit losses; 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; the impact of public health issues and pandemics, and their effects on the economic and business environments in which we operate, the effect of the COVID-19 pandemic, including on our credit quality and business operations, as well as its impact on general economic and financial market conditions; and other factors as described in our securities filings with the SEC. All forward-looking statements and information set forth herein are based on Corporation 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 SEC, including our most recent Annual Report on Form 10-K, as updated by our quarterly or other reports subsequently filed with the SEC.

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
	March 31, 2020				December 31, 2019				September 30, 2019				June 30, 2019				March 31, 2019
Consolidated Balance Sheet (selected items)
Interest-bearing deposits with banks	$	69,239			$	42,328			$	86,158			$	49,643			$	29,449
Investment securities		537,592				1,027,182				625,452				606,844				578,629
Loans held for sale		2,785				4,249				5,767				6,333				2,884
Portfolio loans and leases		3,767,166				3,689,313				3,540,747				3,534,665				3,523,514
Allowance for credit losses ("ACL") on loans and leases		(54,070	)			(22,602	)			(20,777	)			(21,182	)			(20,616	)
Goodwill and other intangible assets		202,225				203,143				204,096				205,050				206,006
Total assets		4,923,033				5,263,259				4,828,641				4,736,565				4,631,993
Deposits - interest-bearing		2,850,986				2,944,072				2,794,079				2,691,502				2,755,307
Deposits - non-interest-bearing		927,922				898,173				904,409				940,911				882,310
Short-term borrowings		162,045				493,219				203,471				207,828				124,214
Long-term FHLB advances		47,303				52,269				44,735				47,941				55,407
Subordinated notes		98,750				98,705				98,660				98,616				98,571
Jr. subordinated debentures		21,798				21,753				21,709				21,665				21,622
Total liabilities		4,329,854				4,651,032				4,227,706				4,146,410				4,056,886
Total shareholders' equity		593,179				612,227				600,935				590,155				575,107
Average Balance Sheet (selected items)
Interest-bearing deposits with banks	$	50,330			$	66,060			$	48,597			$	37,843			$	32,742
Investment securities		542,876				593,289				622,336				587,518				569,915
Loans held for sale		2,319				4,160				4,375				3,353				1,214
Portfolio loans and leases		3,736,067				3,594,449				3,528,548				3,520,866				3,476,525
Total interest-earning assets		4,331,592				4,257,958				4,203,856				4,149,580				4,080,396
Goodwill and intangible assets		202,760				203,663				204,637				205,593				206,716
Total assets		4,844,918				4,775,407				4,760,074				4,651,625				4,545,129
Deposits - interest-bearing		2,853,712				2,799,050				2,776,226				2,794,854				2,674,194
Short-term borrowings		140,585				121,612				169,985				68,529				157,652
Long-term FHLB advances		47,335				53,443				45,698				52,397				55,385
Subordinated notes		98,725				98,681				98,634				98,587				98,542
Jr. subordinated debentures		21,768				21,726				21,680				21,637				21,595
Total interest-bearing liabilities		3,162,125				3,094,512				3,112,223				3,036,004				3,007,368
Total liabilities		4,229,908				4,168,899				4,164,763				4,070,160				3,973,043
Total shareholders' equity		615,010				606,508				595,311				581,465				572,086
Income Statement
Net interest income	$	36,333			$	35,985			$	37,398			$	36,611			$	37,647
Provision for loan and lease losses		32,335				2,225				919				1,627				3,736
Noninterest income		18,300				23,255				19,455				20,221				19,253
Noninterest expense		36,418				36,430				35,173				35,188				39,724
Income tax (benefit) expense		(2,957	)			4,202				4,402				4,239				2,764
Net (loss) income		(11,163	)			16,383				16,359				15,778				10,676
Net loss attributable to noncontrolling interest		–				(1	)			(1	)			(7	)			(1	)
Net (loss) income attributable to Bryn Mawr Bank Corporation		(11,163	)			16,384				16,360				15,785				10,677
Basic earnings per share		(0.56	)			0.81				0.81				0.78				0.53
Diluted earnings per share		(0.56	)			0.81				0.81				0.78				0.53
Net (loss) income (core) (1)		(11,163	)			16,384				16,360				15,785				14,230
Basic earnings per share (core) (1)		(0.56	)			0.81				0.81				0.78				0.71
Diluted earnings per share (core) (1)		(0.56	)			0.81				0.81				0.78				0.70
Dividends paid or accrued per share		0.26				0.26				0.26				0.25				0.25
Profitability Indicators
Return on average assets		(0.93	)%			1.36	%			1.36	%			1.36	%			0.95	%
Return on average equity		(7.30	)%			10.72	%			10.90	%			10.89	%			7.57	%
Return on tangible equity(1)		(10.17	)%			16.85	%			17.35	%			17.62	%			12.65	%
Return on tangible equity (core)(1)		(10.17	)%			16.85	%			17.35	%			17.62	%			16.59	%
Return on average assets (core)(1)		(0.93	)%			1.36	%			1.36	%			1.36	%			1.27	%
Return on average equity (core)(1)		(7.30	)%			10.72	%			10.90	%			10.89	%			10.09	%
Tax-equivalent net interest margin		3.38	%			3.36	%			3.54	%			3.55	%			3.75	%
Efficiency ratio(1)		64.98	%			59.89	%			60.19	%			60.23	%			60.26	%
Share Data
Closing share price	$	28.38			$	41.24			$	36.51			$	37.32			$	36.13
Book value per common share	$	29.78			$	30.42			$	29.86			$	29.31			$	28.52
Tangible book value per common share	$	19.66			$	20.36			$	19.75			$	19.16			$	18.34
Price / book value		95.30	%			135.57	%			122.27	%			127.33	%			126.68	%
Price / tangible book value		144.35	%			202.55	%			184.86	%			194.78	%			197.00	%
Weighted average diluted shares outstanding		20,053,159				20,213,008				20,208,630				20,244,409				20,271,661
Shares outstanding, end of period		19,921,524				20,126,296				20,124,193				20,131,854				20,167,729
Wealth Management Information:
Wealth assets under mgmt, administration, supervision and brokerage (2)	$	15,593,732			$	16,548,060			$	15,609,786			$	14,815,298			$	14,736,512
Fees for wealth management services	$	11,168			$	11,672			$	10,826			$	11,510			$	10,392
Capital Ratios(3)
Bryn Mawr Trust Company ("BMTC")
Tier I capital to risk weighted assets ("RWA")		11.12	%			11.47	%			12.17	%			11.83	%			11.30	%
Total capital to RWA		12.35	%			12.09	%			12.75	%			12.42	%			11.87	%
Tier I leverage ratio		9.12	%			9.37	%			9.75	%			9.61	%			9.48	%
Tangible equity ratio (1)		8.98	%			8.58	%			9.75	%			9.58	%			9.34	%
Common equity Tier I capital to RWA		11.12	%			11.47	%			12.17	%			11.83	%			11.30	%
Bryn Mawr Bank Corporation ("BMBC")
Tier I capital to RWA		10.82	%			11.42	%			11.33	%			11.12	%			10.72	%
Total capital to RWA		14.64	%			14.69	%			14.61	%			14.44	%			14.00	%
Tier I leverage ratio		8.88	%			9.33	%			9.07	%			9.04	%			8.99	%
Tangible equity ratio (1)		8.30	%			8.10	%			8.60	%			8.51	%			8.35	%
Common equity Tier I capital to RWA		10.27	%			10.86	%			10.75	%			10.54	%			10.14	%
Asset Quality Indicators
Net loan and lease charge-offs ("NCO"s)	$	4,073			$	400			$	1,324			$	1,061			$	2,546
Nonperforming loans and leases ("NPL"s)	$	7,557			$	10,648			$	14,119			$	12,179			$	19,283
Other real estate owned ("OREO")		–				–				72				155				84
Total nonperforming assets ("NPA"s)	$	7,557			$	10,648			$	14,191			$	12,334			$	19,367
Nonperforming loans and leases 30 or more days past due	$	3,380			$	6,314			$	4,940			$	8,224			$	8,489
Performing loans and leases 30 to 89 days past due		19,930				7,196				5,273				9,466				6,432
Performing loans and leases 90 or more days past due		–				–				–				–				–
Total delinquent loans and leases	$	23,310			$	13,510			$	10,213			$	17,690			$	14,921
Delinquent loans and leases to total loans and leases		0.62	%			0.37	%			0.29	%			0.50	%			0.42	%
Delinquent performing loans and leases to total loans and leases		0.53	%			0.19	%			0.15	%			0.27	%			0.18	%
NCOs / average loans and leases (annualized)		0.44	%			0.04	%			0.15	%			0.12	%			0.30	%
NPLs / total portfolio loans and leases		0.20	%			0.29	%			0.40	%			0.34	%			0.55	%
NPAs / total loans and leases and OREO		0.20	%			0.29	%			0.40	%			0.35	%			0.55	%
NPAs / total assets		0.15	%			0.20	%			0.29	%			0.26	%			0.42	%
ACL / NPLs		715.50	%			212.27	%			147.16	%			173.92	%			106.91	%
ACL / portfolio loans		1.44	%			0.61	%			0.59	%			0.60	%			0.59	%
ACL for originated loans and leases / Originated loans and leases (1)		1.47	%			0.68	%			0.66	%			0.68	%			0.68	%
(Total ACL + Loan mark) / Total Gross portfolio loans and leases (1)		1.68	%			0.91	%			0.92	%			1.00	%			1.03	%
Troubled debt restructurings ("TDR"s) included in NPLs	$	3,248			$	3,018			$	5,755			$	4,190			$	4,057
TDRs in compliance with modified terms		4,852				5,071				5,069				5,141				5,149
Total TDRs	$	8,100			$	8,089			$	10,824			$	9,331			$	9,206
(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. The March 31, 2020 ratios reflect the Corporation’s planned election of a five-year transition provision to delay for two years the full impact of CECL on regulatory capital, followed by a three-year transition period.

Bryn Mawr Bank Corporation
Detailed Balance Sheets (unaudited)
(dollars in thousands)
	March 31, 2020				December 31, 2019				September 30, 2019				June 30, 2019				March 31, 2019
Assets
Cash and due from banks	$	17,803			$	11,603			$	8,582			$	13,742			$	13,656
Interest-bearing deposits with banks		69,239				42,328				86,158				49,643				29,449
Cash and cash equivalents		87,042				53,931				94,740				63,385				43,105
Investment securities, available for sale		516,466				1,005,984				604,181				588,119				559,983
Investment securities, held to maturity		13,369				12,577				12,947				10,209				10,457
Investment securities, trading		7,757				8,621				8,324				8,516				8,189
Loans held for sale		2,785				4,249				5,767				6,333				2,884
Portfolio loans and leases, originated		3,424,601				3,320,816				3,137,769				3,088,849				3,032,270
Portfolio loans and leases, acquired		342,565				368,497				402,978				445,816				491,244
Total portfolio loans and leases		3,767,166				3,689,313				3,540,747				3,534,665				3,523,514
Less: Allowance for credit losses on originated loan and leases		(50,365	)			(22,526	)			(20,675	)			(21,076	)			(20,519	)
Less: Allowance for credit losses on acquired loan and leases		(3,705	)			(76	)			(102	)			(106	)			(97	)
Total allowance for credit losses on loans and leases		(54,070	)			(22,602	)			(20,777	)			(21,182	)			(20,616	)
Net portfolio loans and leases		3,713,096				3,666,711				3,519,970				3,513,483				3,502,898
Premises and equipment		63,144				64,965				66,439				68,092				67,279
Operating lease right-of-use assets		40,157				40,961				42,200				43,116				43,985
Accrued interest receivable		12,017				12,482				12,746				13,312				13,123
Mortgage servicing rights		4,115				4,450				4,580				4,744				4,910
Bank owned life insurance		59,399				59,079				58,749				58,437				58,138
Federal Home Loan Bank ("FHLB") stock		11,928				23,744				16,148				14,677				10,526
Goodwill		184,012				184,012				184,012				184,012				184,012
Intangible assets		18,213				19,131				20,084				21,038				21,994
Other investments		16,786				16,683				16,683				16,517				16,526
Other assets		172,747				85,679				161,071				122,575				83,984
Total assets	$	4,923,033			$	5,263,259			$	4,828,641			$	4,736,565			$	4,631,993
Liabilities
Deposits
Noninterest-bearing	$	927,922			$	898,173			$	904,409			$	940,911			$	882,310
Interest-bearing		2,850,986				2,944,072				2,794,079				2,691,502				2,755,307
Total deposits		3,778,908				3,842,245				3,698,488				3,632,413				3,637,617
Short-term borrowings		162,045				493,219				203,471				207,828				124,214
Long-term FHLB advances		47,303				52,269				44,735				47,941				55,407
Subordinated notes		98,750				98,705				98,660				98,616				98,571
Jr. subordinated debentures		21,798				21,753				21,709				21,665				21,622
Operating lease liabilities		44,482				45,258				46,506				47,393				48,224
Accrued interest payable		7,230				6,248				9,015				8,244				8,674
Other liabilities		169,338				91,335				105,122				82,310				62,557
Total liabilities		4,329,854				4,651,032				4,227,706				4,146,410				4,056,886
Shareholders' equity
Common stock		24,655				24,650				24,646				24,583				24,577
Paid-in capital in excess of par value		379,495				378,606				377,806				376,652				375,655
Less: common stock held in treasury, at cost		(88,540	)			(81,174	)			(81,089	)			(78,583	)			(76,974	)
Accumulated other comprehensive income (loss), net of tax		8,869				2,187				2,698				1,700				(3,278	)
Retained earnings		269,395				288,653				277,568				266,496				255,813
Total Bryn Mawr Bank Corporation shareholders' equity		593,874				612,922				601,629				590,848				575,793
Noncontrolling interest		(695	)			(695	)			(694	)			(693	)			(686	)
Total shareholders' equity		593,179				612,227				600,935				590,155				575,107
Total liabilities and shareholders' equity	$	4,923,033			$	5,263,259			$	4,828,641			$	4,736,565			$	4,631,993

Bryn Mawr Bank Corporation
Supplemental Balance Sheet Information (unaudited)
(dollars in thousands)
	Portfolio Loans and Leases(1) as of
	March 31, 2020				December 31, 2019				September 30, 2019				June 30, 2019				March 31, 2019
Commercial Real Estate Loans - Non-owner Occupied	$	1,354,416			$	1,337,167			$	1,238,881			$	1,217,763			$	1,222,670
Commercial Real Estate Loans - Owner Occupied		530,667				527,607				499,202				514,013				511,090
Home equity lines of credit		209,278				224,262				227,682				231,697				228,902
Residential Mortgages - secured by first liens		710,495				706,690				702,588				704,605				703,241
Residential Mortgages - secured by junior liens		35,583				36,843				37,240				39,063				41,254
Construction		221,116				202,198				195,161				195,269				202,717
Total real estate loans		3,061,555				3,034,767				2,900,754				2,902,410				2,909,874
Commercial & Industrial		491,298				432,227				426,084				419,936				408,596
Consumer		45,951				57,241				50,760				49,453				48,682
Leases		168,362				165,078				163,149				162,866				156,362
Total non-real estate loans and leases		705,611				654,546				639,993				632,255				613,640
Total portfolio loans and leases	$	3,767,166			$	3,689,313			$	3,540,747			$	3,534,665			$	3,523,514
	Nonperforming Loans and Leases(1) as of
	March 31, 2020				December 31, 2019				September 30, 2019				June 30, 2019				March 31, 2019
Commercial Real Estate Loans - Non-owner Occupied	$	181			$	199			$	3,055			$	3,147			$	3,396
Commercial Real Estate Loans - Owner Occupied		2,543				4,159				4,535				2,470				1,158
Home equity lines of credit		758				636				693				470				7,049
Residential Mortgages - secured by first liens		1,080				2,447				2,693				3,102				5,667
Residential Mortgages - secured by junior liens		79				83				84				72				400
Total nonperforming real estate loans		4,641				7,524				11,060				9,261				17,670
Commercial & Industrial		2,692				2,180				1,991				2,056				620
Consumer		52				61				75				60				80
Leases		172				883				993				802				913
Total nonperforming non-real estate loans and leases		2,916				3,124				3,059				2,918				1,613
Total nonperforming portfolio loans and leases	$	7,557			$	10,648			$	14,119			$	12,179			$	19,283
	Net Loan and Lease Charge-Offs (Recoveries)(1) for the Three Months Ended
	March 31, 2020				December 31, 2019				September 30, 2019				June 30, 2019				March 31, 2019
Commercial Real Estate Loans - Non-owner Occupied	$	(2	)		$	(1,067	)		$	(7	)		$	(4	)		$	1,512
Commercial Real Estate Loans - Owner Occupied		–				190				680				–				–
Home equity lines of credit		114				33				(22	)			128				102
Residential Mortgages - secured by first liens		727				378				(7	)			339				328
Residential Mortgages - secured by junior liens		–				–				–				52				–
Construction		(1	)			(1	)			(1	)			(1	)			(1	)
Total net charge-offs of real estate loans		838				(467	)			643				514				1,941
Commercial & Industrial		612				57				(15	)			(17	)			189
Consumer		261				227				187				119				102
Leases		2,362				583				509				445				314
Total net charge-offs of non-real estate loans and leases		3,235				867				681				547				605
Total net charge-offs	$	4,073			$	400			$	1,324			$	1,061			$	2,546
(1) In conjunction with the adoption of CECL, the Corporation has revised its portfolio segmentation to align with the methodology applied in determining the ACL) for loans and leases under CECL, which is based on Federal call report codes which classify loans based on the primary collateral supporting the loan. Portfolio segmentation prior to the adoption of CECL was based on product type or purpose. As such, certain reclassifications were made to conform previous years to the current year's presentation.

Bryn Mawr Bank Corporation
Supplemental Balance Sheet Information (unaudited)
(dollars in thousands)
	Investment Securities Available for Sale, at Fair Value
	March 31, 2020			December 31, 2019				September 30, 2019			June 30, 2019			March 31, 2019
U.S. Treasury securities	$	101		$	500,101			$	101		$	101		$	100
Obligations of the U.S. Government and agencies		106,679			102,020				172,753			192,799			186,746
State & political subdivisions - tax-free		4,562			5,379				6,327			6,700			8,468
State & political subdivisions - taxable		–			–				–			170			170
Mortgage-backed securities		374,775			366,002				388,891			348,975			322,913
Collateralized mortgage obligations		29,699			31,832				35,459			38,724			40,486
Other debt securities		650			650				650			650			1,100
Total investment securities available for sale, at fair value	$	516,466		$	1,005,984			$	604,181		$	588,119		$	559,983
	Unrealized Gain (Loss) on Investment Securities Available for Sale
	March 31, 2020			December 31, 2019				September 30, 2019			June 30, 2019			March 31, 2019
U.S. Treasury securities	$	1		$	35			$	1		$	1		$	–
Obligations of the U.S. Government and agencies		1,036			(159	)			188			275			(1,334	)
State & political subdivisions - tax-free		10			13				8			8			(5	)
Mortgage-backed securities		11,554			5,025				4,605			3,364			(696	)
Collateralized mortgage obligations		778			36				180			89			(510	)
Total unrealized gains (losses) on investment securities available for sale	$	13,379		$	4,950			$	4,982		$	3,737		$	(2,545	)
	Deposits
	March 31, 2020			December 31, 2019				September 30, 2019			June 30, 2019			March 31, 2019
Interest-bearing deposits:
Interest-bearing demand	$	750,127		$	944,915			$	778,809		$	745,134		$	664,683
Money market		1,133,952			1,106,478				983,170			966,596			961,348
Savings		247,799			220,450				248,539			263,830			265,613
Retail time deposits		406,828			405,123				467,346			502,745			531,522
Wholesale non-maturity deposits		198,888			177,865				274,121			100,047			47,744
Wholesale time deposits		113,392			89,241				42,094			113,150			284,397
Total interest-bearing deposits		2,850,986			2,944,072				2,794,079			2,691,502			2,755,307
Noninterest-bearing deposits		927,922			898,173				904,409			940,911			882,310
Total deposits	$	3,778,908		$	3,842,245			$	3,698,488		$	3,632,413		$	3,637,617

Bryn Mawr Bank Corporation
Detailed Income Statements (unaudited)
(dollars in thousands, except per share data)
	For the Three Months Ended
	March 31, 2020				December 31, 2019				September 30, 2019				June 30, 2019				March 31, 2019
Interest income:
Interest and fees on loans and leases	$	42,795			$	43,220			$	45,527			$	44,783			$	44,837
Interest on cash and cash equivalents		111				195				143				73				132
Interest on investment securities		3,201				3,545				3,903				3,532				3,499
Total interest income		46,107				46,960				49,573				48,388				48,468
Interest expense:
Interest on deposits		7,637				8,674				9,510				9,655				8,097
Interest on short-term borrowings		453				555				937				357				943
Interest on FHLB advances		244				279				243				269				278
Interest on jr. subordinated debentures		295				323				340				352				358
Interest on subordinated notes		1,145				1,144				1,145				1,144				1,145
Total interest expense		9,774				10,975				12,175				11,777				10,821
Net interest income		36,333				35,985				37,398				36,611				37,647
Provision for credit losses ("PCL") on loans and leases		32,335				2,225				919				1,627				3,736
Net interest income after PCL on loans and leases		3,998				33,760				36,479				34,984				33,911
Noninterest income:
Fees for wealth management services		11,168				11,672				10,826				11,510				10,392
Insurance commissions		1,533				1,666				1,842				1,697				1,672
Capital markets revenue		2,361				5,455				2,113				1,489				2,219
Service charges on deposits		846				858				856				852				808
Loan servicing and other fees		461				489				555				553				609
Net gain on sale of loans		782				597				674				752				319
Net gain (loss) on sale of other real estate owned		148				(48	)			(12	)			–				(24	)
Dividends on FHLB and FRB stocks		444				432				346				316				411
Other operating income		557				2,134				2,255				3,052				2,847
Total noninterest income		18,300				23,255				19,455				20,221				19,253
Noninterest expense:
Salaries and wages		16,989				18,667				17,765				17,038				20,901
Employee benefits		3,500				2,685				3,288				3,317				4,166
Occupancy and bank premises		3,015				3,206				3,008				3,125				3,252
Furniture, fixtures and equipment		2,431				2,401				2,335				2,568				2,389
Advertising		401				599				587				504				415
Amortization of intangible assets		918				953				954				956				938
Impairment (recovery) of mortgage servicing rights ("MSRs")		231				13				(19	)			10				17
Professional fees		1,368				1,754				1,044				1,316				1,320
Pennsylvania bank shares tax		116				42				514				513				409
Data processing		1,394				1,517				1,377				1,303				1,320
Other operating expenses		6,055				4,593				4,320				4,538				4,597
Total noninterest expense		36,418				36,430				35,173				35,188				39,724
(Loss) income before income taxes		(14,120	)			20,585				20,761				20,017				13,440
Income tax (benefit) expense		(2,957	)			4,202				4,402				4,239				2,764
Net (loss) income	$	(11,163	)		$	16,383			$	16,359			$	15,778			$	10,676
Net (loss) attributable to noncontrolling interest		–				(1	)			(1	)			(7	)			(1	)
Net (loss) income attributable to Bryn Mawr Bank Corporation	$	(11,163	)		$	16,384			$	16,360			$	15,785			$	10,677
Per share data:
Weighted average shares outstanding		20,053,159				20,124,553				20,132,117				20,144,651				20,168,498
Dilutive common shares		–				88,455				76,513				99,758				103,163
Weighted average diluted shares		20,053,159				20,213,008				20,208,630				20,244,409				20,271,661
Basic earnings per common share	$	(0.56	)		$	0.81			$	0.81			$	0.78			$	0.53
Diluted earnings per common share	$	(0.56	)		$	0.81			$	0.81			$	0.78			$	0.53
Dividends paid or accrued per common share	$	0.26			$	0.26			$	0.26			$	0.25			$	0.25
Effective tax rate		20.94	%			20.41	%			21.20	%			21.18	%			20.57	%

Bryn Mawr Bank Corporation
Tax-Equivalent Net Interest Margin (unaudited)
(dollars in thousands, except per share data)
	For the Three Months Ended
	March 31, 2020								December 31, 2019								September 30, 2019								June 30, 2019								March 31, 2019
	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	$	50,330		$	111		0.89	%	$	66,060		$	195		1.17	%	$	48,597		$	143		1.17	%	$	37,843		$	73		0.77	%	$	32,742		$	132		1.64	%
Investment securities - available for sale:
Taxable		516,244			3,065		2.39	%		566,359			3,334		2.34	%		594,975			3,765		2.51	%		560,999			3,400		2.43	%		543,687			3,363		2.51	%
Tax-exempt		4,909			28		2.29	%		5,844			33		2.24	%		6,594			36		2.17	%		7,530			43		2.29	%		9,795			55		2.28	%
Total investment securities - available for sale		521,153			3,093		2.39	%		572,203			3,367		2.33	%		601,569			3,801		2.51	%		568,529			3,443		2.43	%		553,482			3,418		2.50	%
Investment securities - held to maturity		13,195			87		2.65	%		12,756			84		2.61	%		12,360			80		2.57	%		10,417			71		2.73	%		8,804			67		3.09	%
Investment securities - trading		8,528			25		1.18	%		8,330			99		4.72	%		8,407			27		1.27	%		8,572			24		1.12	%		7,629			22		1.17	%
Loans and leases *		3,738,386			42,898		4.62	%		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	%
Total interest-earning assets		4,331,592			46,214		4.29	%		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	%
Cash and due from banks		12,479								9,829								12,890								13,725								14,414
Less: allowance for loan and lease losses		(25,786	)							(21,124	)							(21,438	)							(20,844	)							(19,887	)
Other assets		526,633								528,744								564,766								509,164								470,206
Total assets	$	4,844,918							$	4,775,407							$	4,760,074							$	4,651,625							$	4,545,129
Liabilities:
Interest-bearing deposits:
Savings, NOW and market rate deposits	$	2,197,279		$	4,981		0.91	%	$	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	%
Wholesale deposits		253,322			977		1.55	%		214,229			1,024		1.90	%		299,309			1,729		2.29	%		345,782			2,143		2.49	%		342,696			2,012		2.38	%
Retail time deposits		403,111			1,679		1.68	%		435,198			1,991		1.82	%		480,736			2,336		1.93	%		520,317			2,472		1.91	%		533,395			2,321		1.76	%
Total interest-bearing deposits		2,853,712			7,637		1.08	%		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	%
Borrowings:
Short-term borrowings		140,585			453		1.30	%		121,612			555		1.81	%		169,985			937		2.19	%		68,529			357		2.09	%		157,652			943		2.43	%
Long-term FHLB advances		47,335			244		2.07	%		53,443			279		2.07	%		45,698			243		2.11	%		52,397			269		2.06	%		55,385			278		2.04	%
Subordinated notes		98,725			1,145		4.66	%		98,681			1,144		4.60	%		98,634			1,145		4.61	%		98,587			1,144		4.65	%		98,542			1,145		4.71	%
Jr. subordinated debt		21,768			295		5.45	%		21,726			323		5.90	%		21,680			340		6.22	%		21,637			352		6.53	%		21,595			358		6.72	%
Total borrowings		308,413			2,137		2.79	%		295,462			2,301		3.09	%		335,997			2,665		3.15	%		241,150			2,122		3.53	%		333,174			2,724		3.32	%
Total interest-bearing liabilities		3,162,125			9,774		1.24	%		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	%
Noninterest-bearing deposits		894,264								915,128								903,314								909,945								871,726
Other liabilities		173,519								159,259								149,226								124,211								93,949
Total noninterest-bearing liabilities		1,067,783								1,074,387								1,052,540								1,034,156								965,675
Total liabilities		4,229,908								4,168,899								4,164,763								4,070,160								3,973,043
Shareholders' equity		615,010								606,508								595,311								581,465								572,086
Total liabilities and shareholders' equity	$	4,844,918							$	4,775,407							$	4,760,074							$	4,651,625							$	4,545,129
Net interest spread							3.05	%							2.98	%							3.14	%							3.13	%							3.37	%
Effect of noninterest-bearing sources							0.33	%							0.38	%							0.40	%							0.42	%							0.38	%
Tax-equivalent net interest margin				$	36,440		3.38	%				$	36,096		3.36	%				$	37,518		3.54	%				$	36,737		3.55	%				$	37,776		3.75	%
Tax-equivalent adjustment				$	107		0.01	%				$	111		0.01	%				$	120		0.01	%				$	126		0.01	%				$	129		0.01	%
Supplemental Information Regarding Accretion of Fair Value Marks
	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		I			Increase (Decrease)			Effect on Yield or Rate
Loans and leases	Income			$	910		0.10	%				$	1,027		0.11	%				$	1,501		0.17	%				$	1,193		0.14	%				$	1,997		0.23	%
Retail time deposits	Expense			$	(118	)	(0.12	)%				$	(134	)	(0.12	)%				$	(151	)	(0.12	)%				$	(171	)	(0.13	)%				$	(222	)	(0.17	)%
Long-term FHLB advances	Expense			$	34		0.29	%				$	34		0.25	%				$	34		0.30	%				$	34		0.26	%				$	33		0.24	%
Jr. subordinated debt	Expense			$	45		0.83	%				$	44		0.80	%				$	44		0.81	%				$	43		0.80	%				$	42		0.79	%
Net interest income from fair value marks				$	949							$	1,083							$	1,574							$	1,287							$	2,144
Purchase accounting effect on tax-equivalent margin							0.09	%							0.10	%							0.15	%							0.12	%							0.21	%
* 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
	March 31, 2020				December 31, 2019				September 30, 2019				June 30, 2019				March 31, 2019
Reconciliation of Net Income to Net Income (core):
Net (loss) income attributable to BMBC (a GAAP measure)	$	(11,163	)		$	16,384			$	16,360			$	15,785			$	10,677
Add: Tax-effected non-core noninterest expense items:
Voluntary years of service incentive program expenses		–				–				–				–				3,553
Net (loss) income (core) (a non-GAAP measure)	$	(11,163	)		$	16,384			$	16,360			$	15,785			$	14,230
Calculation of Basic and Diluted Earnings per Common Share (core):
Weighted average common shares outstanding		20,053,159				20,124,553				20,132,117				20,144,651				20,168,498
Dilutive common shares		–				88,455				76,513				99,758				103,163
Weighted average diluted shares		20,053,159				20,213,008				20,208,630				20,244,409				20,271,661
Basic earnings per common share (core) (a non-GAAP measure)	$	(0.56	)		$	0.81			$	0.81			$	0.78			$	0.71
Diluted earnings per common share (core) (a non-GAAP measure)	$	(0.56	)		$	0.81			$	0.81			$	0.78			$	0.70
Calculation of Return on Average Tangible Equity:
Net (loss) income attributable to BMBC (a GAAP measure)	$	(11,163	)		$	16,384			$	16,360			$	15,785			$	10,677
Add: Tax-effected amortization and impairment of intangible assets		725				753				754				755				741
Net tangible income (numerator)	$	(10,438	)		$	17,137			$	17,114			$	16,540			$	11,418
Average shareholders' equity	$	615,010			$	606,508			$	595,311			$	581,465			$	572,086
Less: Average Noncontrolling interest		695				694				693				688				685
Less: Average goodwill and intangible assets		(202,760	)			(203,663	)			(204,637	)			(205,593	)			(206,716	)
Net average tangible equity (denominator)	$	412,945			$	403,539			$	391,367			$	376,560			$	366,055
Return on tangible equity (a non-GAAP measure)		(10.17	)%			16.85	%			17.35	%			17.62	%			12.65	%
Calculation of Return on Average Tangible Equity (core):
Net (loss) income (core) (a non-GAAP measure)	$	(11,163	)		$	16,384			$	16,360			$	15,785			$	14,230
Add: Tax-effected amortization and impairment of intangible assets		725				753				754				755				741
Net tangible (loss) income (core) (numerator)	$	(10,438	)		$	17,137			$	17,114			$	16,540			$	14,971
Average shareholders' equity	$	615,010			$	606,508			$	595,311			$	581,465			$	572,086
Less: Average Noncontrolling interest		695				694				693				688				685
Less: Average goodwill and intangible assets		(202,760	)			(203,663	)			(204,637	)			(205,593	)			(206,716	)
Net average tangible equity (denominator)	$	412,945			$	403,539			$	391,367			$	376,560			$	366,055
Return on tangible equity (core) (a non-GAAP measure)		(10.17	)%			16.85	%			17.35	%			17.62	%			16.59	%
Calculation of Tangible Equity Ratio (BMBC):
Total shareholders' equity	$	593,179			$	612,227			$	600,935			$	590,155			$	575,107
Less: Noncontrolling interest		695				695				694				693				686
Less: Goodwill and intangible assets		(202,225	)			(203,143	)			(204,096	)			(205,050	)			(206,006	)
Net tangible equity (numerator)	$	391,649			$	409,779			$	397,533			$	385,798			$	369,787
Total assets	$	4,923,033			$	5,263,259			$	4,828,641			$	4,736,565			$	4,631,993
Less: Goodwill and intangible assets		(202,225	)			(203,143	)			(204,096	)			(205,050	)			(206,006	)
Tangible assets (denominator)	$	4,720,808			$	5,060,116			$	4,624,545			$	4,531,515			$	4,425,987
Tangible equity ratio (BMBC)(1)		8.30	%			8.10	%			8.60	%			8.51	%			8.35	%
Calculation of Tangible Equity Ratio (BMTC):
Total shareholders' equity	$	624,959			$	624,030			$	641,565			$	625,464			$	605,985
Less: Noncontrolling interest		695				695				694				693				686
Less: Goodwill and intangible assets		(201,979	)			(190,694	)			(191,572	)			(192,450	)			(193,329	)
Net tangible equity (numerator)	$	423,675			$	434,031			$	450,687			$	433,707			$	413,342
Total assets	$	4,919,004			$	5,247,649			$	4,813,704			$	4,721,394			$	4,616,724
Less: Goodwill and intangible assets		(201,979	)			(190,694	)			(191,572	)			(192,450	)			(193,329	)
Tangible assets (denominator)	$	4,717,025			$	5,056,955			$	4,622,132			$	4,528,944			$	4,423,395
Tangible equity ratio (BMTC)(1)		8.98	%			8.58	%			9.75	%			9.58	%			9.34	%
Calculation of Return on Average Assets (core)
Return on average assets (GAAP)		(0.93	)%			1.36	%			1.36	%			1.36	%			0.95	%
Effect of adjustment to GAAP net income to core net income		–	%			–	%			–	%			–	%			0.32	%
Return on average assets (core)		(0.93	)%			1.36	%			1.36	%			1.36	%			1.27	%
Calculation of Return on Average Equity (core)
Return on average equity (GAAP)		(7.30	)%			10.72	%			10.90	%			10.89	%			7.57	%
Effect of adjustment to GAAP net income to core net income		0.00	%			0.00	%			0.00	%			0.00	%			2.52	%
Return on average equity (core)		(7.30	)%			10.72	%			10.90	%			10.89	%			10.09	%
Calculation of Tax-equivalent net interest margin adjusting for the impact of purchase accounting:
Tax-equivalent net interest margin		3.38	%			3.36	%			3.54	%			3.55	%			3.75	%
Effect of fair value marks		0.09	%			0.10	%			0.15	%			0.12	%			0.21	%
Tax-equivalent net interest margin adjusting for the impact of purchase accounting		3.29	%			3.26	%			3.39	%			3.43	%			3.54	%
(1)Capital Ratios for the current quarter are to be considered preliminary until the Call Reports are filed. The March 31, 2020 ratios reflect the Corporation’s planned election of a five-year transition provision to delay for two years the full impact of CECL on regulatory capital, followed by a three-year transition period.
Calculation of Tax-equivalent net interest income adjusting for the impact of purchase accounting:
Tax-equivalent net interest income	$	36,440			$	36,096			$	37,518			$	36,737			$	37,776
Effect of fair value marks		949				1,083				1,574				1,287				2,144
Tax-equivalent net interest income adjusting for the impact of purchase accounting	$	35,491			$	35,013			$	35,944			$	35,450			$	35,632
Calculation of Efficiency Ratio:
Noninterest expense	$	36,418			$	36,430			$	35,173			$	35,188			$	39,724
Less: certain noninterest expense items*:
Amortization of intangibles		(918	)			(953	)			(954	)			(956	)			(938	)
Voluntary years of service incentive program expenses		–				–				–				–				(4,498	)
Noninterest expense (adjusted) (numerator)	$	35,500			$	35,477			$	34,219			$	34,232			$	34,288
Noninterest income (core)	$	18,300			$	23,255			$	19,455			$	20,221			$	19,253
Net interest income		36,333				35,985				37,398				36,611				37,647
Noninterest income (core) and net interest income (denominator)	$	54,633			$	59,240			$	56,853			$	56,832			$	56,900
Efficiency ratio		64.98	%			59.89	%			60.19	%			60.23	%			60.26	%
Supplemental Loan and ACL on Loans and Leases Information Used to Calculate Non-GAAP Measures
Total ACL on loans and leases	$	54,070			$	22,602			$	20,777			$	21,182			$	20,616
Less: ACL on acquired loans and leases		3,705				76				102				106				97
ACL on originated loans and leases	$	50,365			$	22,526			$	20,675			$	21,076			$	20,519
Total ACL on loans and leases	$	54,070			$	22,602			$	20,777			$	21,182			$	20,616
Loan mark on acquired loans and leases		9,478				10,905				11,948				14,174				15,841
Total ACL on loans and leases + Loan mark	$	63,548			$	33,507			$	32,725			$	35,356			$	36,457
Total Portfolio loans and leases	$	3,767,166			$	3,689,313			$	3,540,747			$	3,534,665			$	3,523,514
Less: Originated loans and leases		3,424,601				3,320,816				3,137,769				3,088,849				3,032,270
Net acquired loans	$	342,565			$	368,497			$	402,978			$	445,816			$	491,244
Add: Loan mark on acquired loans		9,478				10,905				11,948				14,174				15,841
Gross acquired loans (excludes loan mark)	$	352,043			$	379,402			$	414,926			$	459,990			$	507,085
Originated loans and leases		3,424,601				3,320,816				3,137,769				3,088,849				3,032,270
Total Gross portfolio loans and leases	$	3,776,644			$	3,700,218			$	3,552,695			$	3,548,839			$	3,539,355
* 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.

Bryn Mawr Bank Corporation
CECL Accounting Standard Adoption January 1, 2020 (unaudited)
(dollars in thousands)
Effective January 1, 2020, the Corporation adopted CECL, which requires that management’s estimate reflects credit losses over the full remaining expected life and considers expected future changes in macroeconomic conditions. The following table illustrates the impact upon the adoption of CECL on January 1, 2020, and the balances as of March 31, 2020, reflecting the impact of the adverse economic outlook due to the COVID-19 pandemic:
	December 31, 2019						January 1, 2020						March 31, 2020
	Incurred Loss Method						CECL (Day 1 Adoption)						CECL
	Amount(1)			% of segment			Amount			% of segment			Amount			% of segment
Allowance for credit losses on loans and leases:
Commercial Real Estate Loans - Non-owner Occupied	$	7,960		0.60	%		$	7,493		0.56	%		$	13,329		0.98	%
Commercial Real Estate Loans - Owner Occupied		2,825		0.54	%			2,841		0.54	%			4,192		0.79	%
Home equity lines of credit		1,114		0.50	%			1,068		0.48	%			2,748		1.31	%
Residential Mortgages - secured by first liens		2,501		0.35	%			4,909		0.69	%			8,316		1.17	%
Residential Mortgages - secured by junior liens		338		0.92	%			417		1.13	%			517		1.45	%
Construction		1,230		0.61	%			871		0.43	%			6,984		3.16	%
Commercial and industrial		3,835		0.89	%			3,676		0.85	%			8,734		1.78	%
Consumer(3)		438		0.77	%			578		1.01	%			341		0.74	%
Leases		2,361		1.43	%			3,955		2.40	%			8,909		5.29	%
Total Allowance for credit losses on loans and leases	$	22,602		0.61	%		$	25,808		0.70	%		$	54,070		1.44	%
Liabilities:
Allowance for credit losses on off-balance sheet credit exposures(2)		360						1,181						4,197
Total Allowance for credit losses	$	22,962					$	26,989					$	58,267
(1) In conjunction with the adoption of CECL, the Corporation has revised its segmentation to align with the methodology applied in determining the ACL for loans and leases under CECL, which is based on Federal call report codes which classify loans based on the primary collateral supporting the loan. Segmentation prior to the adoption of CECL was based on product type or purpose. As such, certain reclassifications were made to conform previous years to the current year's presentation.
(2) Included within Other Liabilities on the Consolidated Balance Sheet.
(3) Includes overdrafts.

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