Bay Street News

Bryn Mawr Bank Corporation Reports Record Quarterly Earnings of $17.1 Million and Record Annual Earnings of $63.8 Million in First Full Fiscal Year with Royal Bank, Declares $0.25 Dividend

BRYN MAWR, Pa., Jan. 17, 2019 (GLOBE NEWSWIRE) — Bryn Mawr Bank Corporation (NASDAQ: BMTC) (the “Corporation”), parent of The Bryn Mawr Trust Company (the “Bank”) today reported net income of $17.1 million, or $0.84 diluted earnings per share for the three months ended December 31, 2018, as compared to net income of $16.7 million, or $0.82 diluted earnings per share, for the three months ended September 30, 2018, and a net loss of $6.2 million, or ($0.35) diluted earnings per share, for the three months ended December 31, 2017.

On a non-GAAP basis, core net income, which excludes Tax Cuts and Jobs Act (“Tax Reform”) related income tax charges, due diligence and merger-related expenses and other non-core income and expense items, as detailed in the appendix to this earnings release, was $17.2 million, or $0.84 diluted earnings per share, for the three months ended December 31, 2018, as compared to $17.1 million, or $0.84 diluted earnings per share, for the three months ended September 30, 2018, and $11.3 million, or $0.63 diluted earnings per share, for the three months ended December 31, 2017. Management believes the core net income measure is important in evaluating the Corporation’s performance on a more comparable basis between periods. A reconciliation of this and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release.

“We were pleased to conclude 2018 on a positive note, with fourth quarter and annual net income reaching all-time highs,” commented Frank Leto, President and Chief Executive Officer, continuing, “Contributions from our Royal Bank acquisition, continued momentum in our wealth division and capital markets area, and solid organic growth are reflected in our year-end results. During 2018 and early 2019 we have welcomed several key additions to our senior leadership team. The depth of knowledge and innovative ideas these new team members bring to BMT will enhance our customer experience, bring greater efficiencies to existing business processes and have us well positioned to execute our strategy as we enter 2019.”

The Board of Directors of the Corporation declared a quarterly dividend of $0.25 per share, payable March 1, 2019 to shareholders of record as of February 1, 2019.

SIGNIFICANT ITEMS OF NOTE

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

Results of Operations – Fourth Quarter 2018 Compared to Fourth Quarter 2017

Financial Condition – December 31, 2018 Compared to December 31, 2017

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 inability to successfully integrate acquired businesses, the possibility that integration may take longer than anticipated or be more costly to complete and that the anticipated benefits, including any anticipated cost savings or strategic gains may be significantly harder to achieve or take longer than anticipated or may not be achieved, 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; litigation; 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; and other factors as described in our securities filings. All forward-looking statements and information set forth herein are based on management’s current beliefs and assumptions as of the date hereof and speak only as of the date they are made.  The Corporation does not undertake to update forward-looking statements.

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

Bryn Mawr Bank Corporation
Summary Financial Information (unaudited)
(dollars in thousands, except per share data)

  As of or For the Three Months Ended   For the Twelve Months Ended
  December 31,
2018
  September 30,
2018
  June 30,
2018
  March 31,
2018
  December 31,
2017
  December 31,
2018
  December 31,
2017
Consolidated Balance Sheet (selected items)                          
Interest-bearing deposits with banks $ 34,357     $ 35,233     $ 39,924     $ 24,589     $ 48,367          
Investment securities 753,628     545,320     547,088     550,199     701,744          
Loans held for sale 1,749     4,111     4,204     5,522     3,794          
Portfolio loans and leases 3,427,154     3,381,475     3,389,501     3,305,795     3,285,858          
Allowance for loan and lease losses (“ALLL”) (19,426 )   (18,684 )   (19,398 )   (17,662 )   (17,525 )        
Goodwill and other intangible assets 207,467     208,165     208,139     207,287     205,855          
Total assets 4,652,485     4,388,442     4,394,203     4,300,376     4,449,720          
Deposits – interest-bearing 2,697,468     2,522,863     2,466,529     2,452,421     2,448,954          
Deposits – non-interest-bearing 901,619     834,363     892,386     863,118     924,844          
Short-term borrowings 252,367     226,498     227,059     173,704     237,865          
Long-term FHLB advances 55,374     72,841     87,808     107,784     139,140          
Subordinated notes 98,526     98,482     98,491     98,448     98,416          
Jr. subordinated debentures 21,580     21,538     21,497     21,456     21,416          
Total liabilities 4,087,781     3,837,017     3,851,700     3,767,315     3,921,601          
Total shareholders’ equity 564,704     551,425     542,503     533,061     528,119          
Average Balance Sheet (selected items)                          
Interest-bearing deposits with banks 38,957     37,467     37,215     38,044     43,962     37,550     34,122  
Investment securities 554,265     546,998     549,249     535,471     499,968     546,549     446,681  
Loans held for sale 2,005     4,932     4,413     2,848     3,966     3,551     3,945  
Portfolio loans and leases 3,397,479     3,374,767     3,348,926     3,288,364     2,801,289     3,352,744     2,660,999  
Total interest-earning assets 3,992,706     3,964,164     3,939,803     3,864,727     3,349,185     3,940,394     3,145,747  
Goodwill and intangible assets 207,893     207,880     208,039     205,529     142,652     207,343     130,791  
Total assets 4,413,000     4,376,148     4,344,541     4,246,180     3,640,667     4,352,122     3,416,146  
Deposits – interest-bearing 2,602,412     2,493,213     2,489,296     2,435,491     2,031,170     2,506,557     1,902,536  
Short-term borrowings 128,429     208,201     205,323     172,534     180,650     178,582     128,008  
Long-term FHLB advances 67,363     81,460     102,023     123,920     134,605     93,503     161,004  
Subordinated notes 98,497     98,457     98,463     98,430     43,844     98,462     33,153  
Jr. subordinated debentures 21,553     21,511     21,470     21,430     3,957     21,491     997  
Total interest-bearing liabilities 2,918,254     2,902,842     2,916,575     2,851,805     2,394,226     2,898,595     2,225,698  
Total liabilities 3,856,694     3,828,241     3,810,640     3,719,746     3,213,349     3,810,537     3,016,876  
Total shareholders’ equity 556,306     547,907     533,901     526,434     427,318     541,585     399,270  
                                         

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,
2018
  September 30,
2018
  June 30,
2018
  March 31,
2018
  December 31,
2017
  December 31,
2018
  December 31,
2017
Income Statement                          
Net interest income $ 37,987     $ 36,729     $ 37,316     $ 37,439     $ 30,321     $ 149,471     $ 115,127  
Provision for loan and lease losses 2,362     664     3,137     1,030     1,077     7,193     2,618  
Noninterest income 18,097     18,274     20,075     19,536     15,536     75,982     59,132  
Noninterest expense 34,845     33,592     35,836     36,030     31,056     140,303     114,395  
Income tax expense 1,746     4,066     3,723     4,630     19,924     14,165     34,230  
Net income 17,131     16,681     14,695     15,285     (6,200 )   63,792     23,016  
Net (loss) income attributable to noncontrolling interest (5 )   (1 )   7     (1 )            
Net income (loss) attributable to Bryn Mawr Bank Corporation 17,136     16,682     14,688     15,286     (6,200 )   63,792     23,016  
Basic earnings (loss) per share 0.85     0.82     0.73     0.76     (0.35 )   3.15     1.34  
Diluted earnings (loss) per share 0.84     0.82     0.72     0.75     (0.35 )   3.13     1.32  
Net income (core) (1) 17,167     17,140     17,031     19,282     11,255     70,620     42,111  
Basic earnings per share (core) (1) 0.85     0.85     0.84     0.95     0.64     3.49     2.46  
Diluted earnings per share (core) (1) 0.84     0.84     0.83     0.94     0.63     3.46     2.42  
Dividends paid or accrued per share 0.25     0.25     0.22     0.22     0.22     0.94     0.86  
Profitability Indicators                          
Return on average assets 1.54 %   1.51 %   1.36 %   1.46 %   (0.68 )%   1.47 %   0.67 %
Return on average equity 12.22 %   12.08 %   11.03 %   11.78 %   (5.76 )%   11.78 %   5.76 %
Return on tangible equity(1) 20.37 %   20.25 %   18.90 %   20.15 %   (8.02 )%   19.91 %   9.23 %
Return on tangible equity (core)(1) 20.40 %   20.78 %   21.78 %   25.19 %   16.29 %   21.95 %   21.86 %
Return on average assets (core)(1) 1.54 %   1.55 %   1.57 %   1.84 %   1.23 %   1.62 %   1.23 %
Return on average equity (core)(1) 12.24 %   12.41 %   12.79 %   14.85 %   10.45 %   13.04 %   10.55 %
Tax-equivalent net interest margin 3.79 %   3.69 %   3.81 %   3.94 %   3.62 %   3.80 %   3.69 %
Efficiency ratio(1) 60.35 %   58.75 %   55.57 %   54.12 %   58.64 %   57.17 %   60.61 %
Share Data                                                      
Closing share price $ 34.40     $ 46.90     $ 46.30     $ 43.95     $ 44.20          
Book value per common share $ 28.01     $ 27.18     $ 26.80     $ 26.35     $ 26.19          
Tangible book value per common share $ 17.75     $ 16.95     $ 16.55     $ 16.14     $ 16.02          
Price / book value 122.81 %   172.55 %   172.76 %   166.79 %   168.74 %        
Price / tangible book value 193.80 %   276.70 %   279.74 %   272.35 %   275.94 %        
Weighted average diluted shares outstanding 20,321,283     20,438,376     20,413,578     20,450,494     17,844,672     20,390,167     17,398,923  
Shares outstanding, end of period 20,163,816     20,291,416     20,242,893     20,229,896     20,161,395          
Wealth Management Information:                          
Wealth assets under mgmt, administration, supervision and brokerage (2) $ 13,429,544     $ 13,913,265     $ 13,404,723     $ 13,146,926     $ 12,968,738          
Fees for wealth management services $ 11,017     $ 10,343     $ 10,658     $ 10,308     $ 9,974          
                                               

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,
2018
  September 30,
2018
  June 30,
2018
  March 31,
2018
  December 31,
2017
  December 31,
2018
  December 31,
2017
Capital Ratios(3)                          
Bryn Mawr Trust Company (“BMTC”)                          
Tier I capital to risk weighted assets (“RWA”) 11.44 %   11.55 %   11.34 %   11.29 %   11.10 %        
Total capital to RWA 12.00 %   12.10 %   11.91 %   11.82 %   11.65 %        
Tier I leverage ratio 9.48 %   9.47 %   9.49 %   9.39 %   10.76 %        
Tangible equity ratio (1) 8.95 %   9.29 %   9.27 %   9.19 %   8.67 %        
Common equity Tier I capital to RWA 11.44 %   11.55 %   11.34 %   11.29 %   11.10 %        
                                               
Bryn Mawr Bank Corporation (“BMBC”)                                              
Tier I capital to RWA 10.94 %   10.90 %   10.46 %   10.46 %   10.42 %        
Total capital to RWA 14.32 %   14.33 %   13.87 %   13.93 %   13.92 %        
Tier I leverage ratio 9.06 %   8.94 %   8.75 %   8.71 %   10.10 %        
Tangible equity ratio (1) 8.05 %   8.23 %   8.00 %   7.98 %   7.61 %        
Common equity Tier I capital to RWA 10.34 %   10.29 %   9.86 %   9.85 %   9.87 %        
                           
Asset Quality Indicators                          
Net loan and lease charge-offs (“NCO”s) $ 1,620     $ 1,378     $ 1,401     $ 893     $ 556     $ 5,292     $ 2,579  
                           
Nonperforming loans and leases (“NPL”s) $ 12,820     $ 8,990     $ 9,448     $ 7,533     $ 8,579          
Other real estate owned (“OREO”) 417     529     531     300     304          
Total nonperforming assets (“NPA”s) $ 13,237     $ 9,519     $ 9,979     $ 7,833     $ 8,883          
                           
Nonperforming loans and leases 30 or more days past due $ 7,765     $ 4,906     $ 6,749     $ 5,775     $ 6,983          
Performing loans and leases 30 to 89 days past due 5,464     9,145     10,378     6,547     7,958          
Performing loans and leases 90 or more days past due                          
Total delinquent loans and leases $ 13,229     $ 14,051     $ 17,127     $ 12,322     $ 14,941          
                           
Delinquent loans and leases to total loans and leases 0.39 %   0.42 %   0.50 %   0.37 %   0.45 %        
Delinquent performing loans and leases to total loans and leases 0.16 %   0.27 %   0.31 %   0.20 %   0.24 %        
NCOs / average loans and leases (annualized) 0.19 %   0.16 %   0.17 %   0.11 %   0.08 %   0.16 %   0.10 %
NPLs / total portfolio loans and leases 0.37 %   0.27 %   0.28 %   0.23 %   0.26 %        
NPAs / total loans and leases and OREO 0.39 %   0.28 %   0.29 %   0.24 %   0.27 %        
NPAs / total assets 0.28 %   0.22 %   0.23 %   0.18 %   0.20 %        
ALLL / NPLs 151.53 %   207.83 %   205.31 %   234.46 %   204.28 %        
ALLL / portfolio loans 0.57 %   0.55 %   0.57 %   0.53 %   0.53 %        
ALLL for originated loans and leases / Originated loans and leases (1) 0.67 %   0.68 %   0.71 %   0.69 %   0.70 %        
(Total ALLL + Loan mark) / Total Gross portfolio loans and leases (1) 1.08 %   1.28 %   1.35 %   1.50 %   1.58 %        
                           
Troubled debt restructurings (“TDR”s) included in NPLs $ 1,217     $ 1,208     $ 1,044     $ 1,125     $ 3,289          
TDRs in compliance with modified terms 9,745     4,316     4,117     5,235     5,800          
Total TDRs $ 10,962     $ 5,524     $ 5,161     $ 6,360     $ 9,089          

(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,
2018
  September 30,
2018
  June 30,
2018
  March 31,
2018
  December 31,
2017
Assets                  
Cash and due from banks $ 14,099     $ 10,121     $ 7,318     $ 7,804     $ 11,657  
Interest-bearing deposits with banks 34,357     35,233     39,924     24,589     48,367  
Cash and cash equivalents 48,456     45,354     47,242     32,393     60,024  
Investment securities, available for sale 737,442     528,064     531,075     534,103     689,202  
Investment securities, held to maturity 8,684     8,916     7,838     7,885     7,932  
Investment securities, trading 7,502     8,340     8,175     8,211     4,610  
Loans held for sale 1,749     4,111     4,204     5,522     3,794  
Portfolio loans and leases, originated 2,885,251     2,752,160     2,700,815     2,564,827     2,487,296  
Portfolio loans and leases, acquired 541,903     629,315     688,686     740,968     798,562  
Total portfolio loans and leases 3,427,154     3,381,475     3,389,501     3,305,795     3,285,858  
Less: Allowance for losses on originated loan and leases (19,329 )   (18,612 )   (19,181 )   (17,570 )   (17,475 )
Less: Allowance for losses on acquired loan and leases (97 )   (72 )   (217 )   (92 )   (50 )
Total allowance for loan and lease losses (19,426 )   (18,684 )   (19,398 )   (17,662 )   (17,525 )
Net portfolio loans and leases 3,407,728     3,362,791     3,370,103     3,288,133     3,268,333  
Premises and equipment 65,648     63,281     54,185     54,986     54,458  
Accrued interest receivable 12,585     13,232     13,115     12,521     14,246  
Mortgage servicing rights 5,047     5,328     5,511     5,706     5,861  
Bank owned life insurance 57,844     57,543     57,243     56,946     56,667  
Federal Home Loan Bank (“FHLB”) stock 14,530     14,678     16,678     15,499     20,083  
Goodwill 184,012     183,864     183,162     182,200     179,889  
Intangible assets 23,455     24,301     24,977     25,087     25,966  
Other investments 16,526     16,529     16,774     11,720     12,470  
Other assets 61,277     52,110     53,921     59,464     46,185  
Total assets $ 4,652,485     $ 4,388,442     $ 4,394,203     $ 4,300,376     $ 4,449,720  
                   
Liabilities                  
Deposits                  
Noninterest-bearing $ 901,619     $ 834,363     $ 892,386     $ 863,118     $ 924,844  
Interest-bearing 2,697,468     2,522,863     2,466,529     2,452,421     2,448,954  
Total deposits 3,599,087     3,357,226     3,358,915     3,315,539     3,373,798  
Short-term borrowings 252,367     226,498     227,059     173,704     237,865  
Long-term FHLB advances 55,374     72,841     87,808     107,784     139,140  
Subordinated notes 98,526     98,482     98,491     98,448     98,416  
Jr. subordinated debentures 21,580     21,538     21,497     21,456     21,416  
Accrued interest payable 6,652     7,193     5,230     4,814     3,527  
Other liabilities 54,195     53,239     52,700     45,570     47,439  
Total liabilities 4,087,781     3,837,017     3,851,700     3,767,315     3,921,601  
                   
Shareholders’ equity                  
Common stock 24,545     24,533     24,453     24,439     24,360  
Paid-in capital in excess of par value 374,010     373,205     372,227     371,319     371,486  
Less: common stock held in treasury, at cost (75,883 )   (70,437 )   (68,943 )   (68,787 )   (68,179 )
Accumulated other comprehensive (loss) income, net of tax (7,513 )   (13,402 )   (11,191 )   (9,664 )   (4,414 )
Retained earnings 250,230     238,204     226,634     216,438     205,549  
Total Bryn Mawr Bank Corporation shareholders’ equity 565,389     552,103     543,180     533,745     528,802  
Noncontrolling interest (685 )   (678 )   (677 )   (684 )   (683 )
Total shareholders’ equity 564,704     551,425     542,503     533,061     528,119  
Total liabilities and shareholders’ equity $ 4,652,485     $ 4,388,442     $ 4,394,203     $ 4,300,376     $ 4,449,720  
                                       

Bryn Mawr Bank Corporation
Supplemental Balance Sheet Information (unaudited)
(dollars in thousands)

  Portfolio Loans and Leases as of
  December 31,
2018
  September 30,
2018
  June 30,
2018
  March 31,
2018
  December 31,
2017
Commercial mortgages $ 1,657,436     $ 1,618,493     $ 1,613,721     $ 1,541,457     $ 1,523,377  
Home equity loans and lines 207,351     207,806     206,429     211,469     218,275  
Residential mortgages 494,355     467,402     449,060     453,655     458,886  
Construction 181,078     178,493     190,874     202,168     212,454  
Total real estate loans 2,540,220     2,472,194     2,460,084     2,408,749     2,412,992  
Commercial & Industrial 695,584     722,999     745,306     727,231     719,312  
Consumer 46,814     47,809     51,462     48,423     38,153  
Leases 144,536     138,473     132,649     121,392     115,401  
Total non-real estate loans and leases 886,934     909,281     929,417     897,046     872,866  
Total portfolio loans and leases $ 3,427,154     $ 3,381,475     $ 3,389,501     $ 3,305,795     $ 3,285,858  

  Nonperforming Loans and Leases as of
  December 31,
2018
  September 30,
2018
  June 30,
2018
  March 31,
2018
  December 31,
2017
Commercial mortgages $ 2,568     $ 735     $ 1,011     $ 138     $ 872  
Home equity loans and lines 3,616     1,933     2,323     1,949     1,481  
Residential mortgages 3,452     2,770     2,647     2,603     4,417  
Construction     291              
Total nonperforming real estate loans 9,636     5,729     5,980     4,690     6,770  
Commercial & Industrial 2,101     1,782     1,585     2,499     1,706  
Consumer 108     117              
Leases 975     1,362     1,882     344     103  
Total nonperforming non-real estate loans and leases 3,184     3,261     3,468     2,843     1,809  
Total nonperforming portfolio loans and leases $ 12,820     $ 8,990     $ 9,448     $ 7,533     $ 8,579  

  Net Loan and Lease Charge-Offs (Recoveries) for the Three Months Ended
  December 31,
2018
  September 30,
2018
  June 30,
2018
  March 31,
2018
  December 31,
2017
Commercial mortgage $ 249     $ 56     $ 13     $ (3 )   $ 51  
Home equity loans and lines 107         199     25     (5 )
Residential 304     (12 )   (1 )       88  
Construction         (1 )   (1 )   (1 )
Total net charge-offs of real estate loans 660     44     210     21     133  
Commercial & Industrial 298     304     467     283     125  
Consumer 147     71     41     48     55  
Leases 515     959     683     541     243  
Total net charge-offs of non-real estate loans and leases 960     1,334     1,191     872     423  
Total net charge-offs $ 1,620     $ 1,378     $ 1,401     $ 893     $ 556  
                                       

Bryn Mawr Bank Corporation
Supplemental Balance Sheet Information (unaudited)
(dollars in thousands)

  Investment Securities Available for Sale, at Fair Value
  December 31,
2018
  September 30,
2018
  June 30,
2018
  March 31,
2018
  December 31,
2017
U.S. Treasury securities $ 200,013     $ 100     $ 100     $ 100     $ 200,088  
Obligations of the U.S. Government and agencies 195,855     190,453     183,256     175,107     151,044  
State & political subdivisions – tax-free 11,162     15,629     17,254     19,746     21,138  
State & political subdivisions – taxable 170     170     171     171     172  
Mortgage-backed securities 289,890     284,421     292,563     303,902     274,990  
Collateralized mortgage obligations 39,252     36,193     36,634     33,980     36,662  
Other debt securities 1,100     1,098     1,097     1,097     1,599  
Other investments                 3,509  
  Total investment securities available for sale, at fair value $ 737,442     $ 528,064     $ 531,075     $ 534,103     $ 689,202  

  Unrealized Gain (Loss) on Investment Securities Available for Sale
  December 31,
2018
  September 30,
2018
  June 30,
2018
  March 31,
2018
  December 31,
2017
U.S. Treasury securities $ (13 )   $     $     $     $ 11  
Obligations of the U.S. Government and agencies (2,749 )   (5,881 )   (4,594 )   (3,756 )   (1,984 )
State & political subdivisions – tax-free (39 )   (90 )   (57 )   (74 )   (42 )
State & political subdivisions – taxable (1 )   (1 )   (1 )   (1 )    
Mortgage-backed securities (4,186 )   (7,584 )   (6,141 )   (5,169 )   (968 )
Collateralized mortgage obligations (898 )   (1,618 )   (1,443 )   (1,322 )   (934 )
Other debt securities     (2 )   (3 )   (3 )   (1 )
Other investments                 296  
  Total unrealized losses on investment securities available for sale $ (7,886 )   $ (15,176 )   $ (12,239 )   $ (10,325 )   $ (3,622 )

  Deposits
  December 31,
2018
  September 30,
2018
  June 30,
2018
  March 31,
2018
  December 31,
2017
Interest-bearing deposits:                  
  Interest-bearing demand $ 664,749     $ 578,243     $ 617,258     $ 529,478     $ 481,336  
  Money market 862,644     812,027     814,530     856,072     862,639  
  Savings 247,081     286,266     291,858     308,925     338,572  
  Retail time deposits 542,702     561,123     536,287     523,138     532,202  
  Wholesale non-maturity deposits 55,031     24,040     36,826     63,449     62,276  
  Wholesale time deposits 325,261     261,164     169,770     171,359     171,929  
   Total interest-bearing deposits 2,697,468     2,522,863     2,466,529     2,452,421     2,448,954  
  Noninterest-bearing deposits 901,619     834,363     892,386     863,118     924,844  
   Total deposits $ 3,599,087     $ 3,357,226     $ 3,358,915     $ 3,315,539     $ 3,373,798  
                                       

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,
2018
  September 30,
2018
  June 30,
2018
  March 31,
2018
  December 31,
2017
  December 31,
2018
  December 31,
2017
Interest income:                          
Interest and fees on loans and leases $ 44,157     $ 42,103     $ 41,689     $ 40,689     $ 32,245     $ 168,638     $ 120,762  
Interest on cash and cash equivalents 83     64     64     53     37     264     174  
Interest on investment securities 3,294     3,066     3,001     2,792     2,516     12,153     8,623  
Total interest income 47,534     45,233     44,754     43,534     34,798     181,055     129,559  
Interest expense:                          
Interest on deposits 7,048     5,533     4,499     3,472     2,739     20,552     8,748  
Interest on short-term borrowings 681     1,096     985     630     579     3,392     1,390  
Interest on FHLB advances 331     394     490     562     595     1,777     2,620  
Interest on jr. subordinated debentures 342     337     321     288     46     1,288     46  
Interest on subordinated notes 1,145     1,144     1,143     1,143     518     4,575     1,628  
Total interest expense 9,547     8,504     7,438     6,095     4,477     31,584     14,432  
Net interest income 37,987     36,729     37,316     37,439     30,321     149,471     115,127  
Provision for loan and lease losses (the “Provision”) 2,362     664     3,137     1,030     1,077     7,193     2,618  
Net interest income after Provision 35,625     36,065     34,179     36,409     29,244     142,278     112,509  
Noninterest income:                          
Fees for wealth management services 11,017     10,343     10,658     10,308     9,974     42,326     38,735  
Insurance commissions 1,459     1,754     1,902     1,693     1,510     6,808     4,589  
Capital markets revenue 1,367     710     2,105     666     600     4,848     2,396  
Service charges on deposits 798     726     752     713     655     2,989     2,608  
Loan servicing and other fees 539     559     475     686     536     2,259     2,106  
Net gain on sale of loans 1,606     631     528     518     493     3,283     2,441  
Net gain on sale of investment securities available for sale             7     28     7     101  
Net gain (loss) on sale of other real estate owned 3     5     111     176     (92 )   295     (104 )
Dividends on FHLB and FRB stocks 305     375     510     431     290     1,621     939  
Other operating income 1,003     3,171     3,034     4,338     1,542     11,546     5,321  
Total noninterest income 18,097     18,274     20,075     19,536     15,536     75,982     59,132  
Noninterest expense:                          
Salaries and wages 17,921     16,528     16,240     15,982     13,619     66,671     53,251  
Employee benefits 2,977     3,356     2,877     3,708     2,717     12,918     10,170  
Occupancy and bank premises 3,135     2,717     2,697     3,050     2,648     11,599     9,906  
Furniture, fixtures and equipment 2,370     2,070     2,069     1,898     1,816     8,407     7,385  
Advertising 540     349     369     461     386     1,719     1,454  
Amortization of intangible assets 997     891     889     879     677     3,656     2,734  
Impairment (recovery) of mortgage servicing rights (“MSRs”) 101     (23 )   (1 )   (50 )   (94 )   27     (45 )
Due diligence, merger-related and merger integration expenses     389     3,053     4,319     3,507     7,761     6,104  
Professional fees 1,526     997     932     748     769     4,203     3,268  
Pennsylvania bank shares tax 374     472     473     473     16     1,792     1,294  
Information technology 1,340     1,155     1,252     1,195     1,006     4,942     3,581  
Other operating expenses 3,564     4,691     4,986     3,367     3,989     16,608     15,293  
Total noninterest expense 34,845     33,592     35,836     36,030     31,056     140,303     114,395  
Income before income taxes 18,877     20,747     18,418     19,915     13,724     77,957     57,246  
Income tax expense 1,746     4,066     3,723     4,630     19,924     14,165     34,230  
  Net income (loss) $ 17,131     $ 16,681     $ 14,695     $ 15,285     $ (6,200 )   $ 63,792     $ 23,016  
Net (loss) income attributable to noncontrolling interest (5 )   (1 )   7     (1 )            
  Net income (loss) attributable to Bryn Mawr Bank Corporation $ 17,136     $ 16,682     $ 14,688     $ 15,286     $ (6,200 )   $ 63,792     $ 23,016  
                           
Per share data:                          
Weighted average shares outstanding 20,225,993     20,270,706     20,238,852     20,202,969     17,632,697     20,234,792     17,150,125  
Dilutive common shares 95,290     167,670     174,726     247,525     211,975     155,375     248,798  
Weighted average diluted shares 20,321,283     20,438,376     20,413,578     20,450,494     17,844,672     20,390,167     17,398,923  
Basic earnings (loss) per common share $ 0.85     $ 0.82     $ 0.73     $ 0.76     $ (0.35 )   $ 3.15     $ 1.34  
Diluted earnings (loss) per common share $ 0.84     $ 0.82     $ 0.72     $ 0.75     $ (0.35 )   $ 3.13     $ 1.32  
Dividends paid or accrued per share $ 0.25     $ 0.25     $ 0.22     $ 0.22     $ 0.22     $ 0.94     $ 0.86  
Effective tax rate 9.25 %   19.60 %   20.21 %   23.25 %   145.18 %   18.17 %   59.79 %
                                         

Bryn Mawr Bank Corporation
Tax-Equivalent Net Interest Margin (unaudited)
(dollars in thousands, except per share data)

    For the Three Months Ended       For the Twelve Months Ended  
    December 31,
2018
    September 30,
2018
    June 30,
2018
    March 31,
2018
    December 31,
2017
      December 31,
2018
    December 31,
2017
 
(dollars in thousands)   Average
Balance
    Interest
Income/
Expense
  Average
Rates Earned/
Paid
    Average Balance     Interest Income/ Expense   Average Rates Earned/ Paid     Average Balance     Interest Income/ Expense   Average Rates Earned/ Paid     Average Balance     Interest Income/ Expense   Average Rates Earned/ Paid     Average Balance     Interest Income/ Expense   Average Rates Earned/ Paid       Average
Balance
    Interest
Income/
Expense
  Average
Rates Earned/
Paid
    Average
Balance
    Interest
Income/
Expense
  Average
Rates Earned/
Paid
 
Assets:                                                                                                                  
Interest-bearing deposits with other banks $ 38,957   $ 83   0.85 % $ 37,467   $ 64   0.68 % $ 37,215   $ 64   0.69 % $ 38,044   $ 53   0.56 % $ 43,962   $ 37   0.33 %   $ 37,550   $ 264   0.70 % $ 34,122   $ 174   0.51 %
Investment securities – available for sale:                                            
Taxable 524,117   3,129   2.37 % 514,360   2,960   2.28 % 514,966   2,888   2.25 % 498,718   2,675   2.18 % 465,393   2,394   2.04 %   513,114   11,652   2.27 % 409,813   8,147   1.99 %
Tax-exempt 13,184   70   2.11 % 16,056   83   2.05 % 18,215   93   2.05 % 20,501   100   1.98 % 22,640   127   2.23 %   16,966   346   2.04 % 27,062   575   2.12 %
Total investment securities – available for sale 537,301   3,199   2.36 % 530,416   3,043   2.28 % 533,181   2,981   2.24 % 519,219   2,775   2.17 % 488,033   2,521   2.05 %   530,080   11,998   2.26 % 436,875   8,722   2.00 %
                                             
Investment securities – held to maturity 8,761   9   0.41 % 8,378   5   0.24 % 7,866   13   0.66 % 7,913   12   0.62 % 7,510   11   0.58 %   8,232   39   0.47 % 5,621   34   0.60 %
Investment securities – trading 8,203   96   4.64 % 8,204   30   1.45 % 8,202   22   1.08 % 8,339   21   1.02 % 4,425   25   2.24 %   8,237   169   2.05 % 4,185   54   1.29 %
                                             
Loans and leases * 3,399,484   44,274   5.17 % 3,379,699   42,214   4.96 % 3,353,339   41,782   5.00 % 3,291,212   40,754   5.02 % 2,805,255   32,403   4.58 %   3,356,295   169,024   5.04 % 2,664,944   121,391   4.56 %
                                             
Total interest-earning assets 3,992,706   47,661   4.74 % 3,964,164   45,356   4.54 % 3,939,803   44,862   4.57 % 3,864,727   43,615   4.58 % 3,349,185   34,997   4.15 %   3,940,394   181,494   4.61 % 3,145,747   130,375   4.14 %
                                             
Cash and due from banks 13,962       7,587       7,153       10,698       6,855         9,853       13,293      
Less: allowance for loan and lease losses (18,625 )     (19,467 )     (18,043 )     (17,628 )     (17,046 )       (18,447 )     (17,181 )    
Other assets 424,957       423,864       415,628       388,383       301,673         420,322       274,287      
                                             
Total assets $ 4,413,000       $ 4,376,148       $ 4,344,541       $ 4,246,180       $ 3,640,667         $ 4,352,122       $ 3,416,146      
                                             
Liabilities:                                            
                                             
Interest-bearing deposits:                                            
Savings, NOW and market rate deposits $ 1,704,065   $ 2,883   0.67 % $ 1,695,214   $ 2,425   0.57 % $ 1,722,328   $ 2,073   0.48 % $ 1,676,733   $ 1,479   0.36 % $ 1,410,461   $ 897   0.25 %   $ 1,715,239   $ 8,860   0.52 % $ 1,383,560   $ 3,289   0.24 %
Wholesale deposits 346,134   1,986   2.28 % 256,347   1,329   2.06 % 233,714   973   1.67 % 231,289   733   1.29 % 262,643   822   1.24 %   251,384   5,021   2.00 % 188,179   2,065   1.10 %
Retail time deposits 552,213   2,179   1.57 % 541,652   1,779   1.30 % 533,254   1,453   1.09 % 527,469   1,260   0.97 % 358,066   1,020   1.13 %   539,934   6,671   1.24 % 330,797   3,394   1.03 %
Total interest-bearing deposits 2,602,412   7,048   1.07 % 2,493,213   5,533   0.88 % 2,489,296   4,499   0.72 % 2,435,491   3,472   0.58 % 2,031,170   2,739   0.53 %   2,506,557   20,552   0.82 % 1,902,536   8,748   0.46 %
                                             
Borrowings:                                            
Short-term borrowings 128,429   681   2.10 % 208,201   1,096   2.09 % 205,323   985   1.92 % 172,534   630   1.48 % 180,650   579   1.27 %   178,582   3,392   1.90 % 128,008   1,390   1.09 %
Long-term FHLB advances 67,363   331   1.95 % 81,460   394   1.92 % 102,023   490   1.93 % 123,920   562   1.84 % 134,605   595   1.75 %   93,503   1,777   1.90 % 161,004   2,620   1.63 %
Subordinated notes 98,497   1,145   4.61 % 98,457   1,144   4.61 % 98,463   1,143   4.66 % 98,430   1,143   4.71 % 43,844   518   4.69 %   98,462   4,575   4.65 % 997   46   4.61 %
Jr. subordinated debt 21,553   342   6.30 % 21,511   337   6.22 % 21,470   321   6.00 % 21,430   288   5.45 % 3,957   46   4.61 %   21,491   1,288   5.99 % 33,153   1,628   4.91 %
Total borrowings 315,842   2,499   3.14 % 409,629   2,971   2.88 % 427,279   2,939   2.76 % 416,314   2,623   2.56 % 363,056   1,738   1.90 %   392,038   11,032   2.81 % 323,162   5,684   1.76 %
                                             
Total interest-bearing liabilities 2,918,254   9,547   1.30 % 2,902,842   8,504   1.16 % 2,916,575   7,438   1.02 % 2,851,805   6,095   0.87 % 2,394,226   4,477   0.74 %   2,898,595   31,584   1.09 % 2,225,698   14,432   0.65 %
                                             
Noninterest-bearing deposits 878,047       866,314       841,676       835,476       771,519         856,506       751,069      
Other liabilities 60,393       59,085       52,389       32,465       47,604         55,436       40,109      
Total noninterest-bearing liabilities 938,440       925,399       894,065       867,941       819,123         911,942       791,178      
                                             
Total liabilities 3,856,694       3,828,241       3,810,640       3,719,746       3,213,349         3,810,537       3,016,876      
                                             
Shareholders’ equity 556,306       547,907       533,901       526,434       427,318         541,585       399,270      
                                             
Total liabilities and shareholders’ equity $ 4,413,000       $ 4,376,148       $ 4,344,541       $ 4,246,180       $ 3,640,667         $ 4,352,122       $ 3,416,146      
                                             
Net interest spread     3.44 %     3.38 %     3.55 %     3.71 %     3.41 %       3.52 %     3.49 %
Effect of noninterest-bearing sources     0.35 %     0.31 %     0.26 %     0.23 %     0.21 %       0.28 %     0.20 %
                                             
Tax-equivalent net interest margin   $ 38,114   3.79 %   $ 36,852   3.69 %   $ 37,424   3.81 %   $ 37,520   3.94 %   $ 30,520   3.62 %     $ 149,910   3.80 %   $ 115,943   3.69 %
                                             
Tax-equivalent adjustment   $ 127   0.01 %   $ 123   0.01 %   $ 108   0.01 %   $ 81   0.01 %   $ 199   0.02 %     $ 439   0.01 %   $ 816   0.03 %
* Average loans and leases include portfolio loans and leases, and loans held for sale. Non-accrual loans are also included in the average loan and leases balances.


Bryn Mawr Bank Corporation
Tax-Equivalent Net Interest Margin (unaudited)
(dollars in thousands, except per share data)

Supplemental Information Regarding Accretion of Fair Value Marks

  For the Three Months Ended   For the Twelve Months Ended
  December 31,
2018
September 30,
2018
June 30,
2018
March 31,
2018
December 31,
2017
  December 31,
2018
December 31,
2017
(dollars in thousands) Interest Inc. /
(Dec.)
Effect on
Yield or
Rate
  Inc. /
(Dec.)
Effect on
Yield or
Rate
  Inc. /
(Dec.)
Effect on
Yield or
Rate
  Inc. /
(Dec.)
Effect on
Yield or
Rate
  Inc. /
(Dec.)
Effect on
Yield or
Rate
    Inc. /
(Dec.)
Effect on
Yield or
Rate
  Inc. /
(Dec.)
Effect on
Yield or
Rate
Loans and leases Income $ 2,492   0.29 %   $ 1,464   0.17 %   $ 1,945   0.23 %   $ 2,702   0.33 %   $ 276   0.04 %     $ 8,603   0.26 %   $ 2,112   0.08 %
Retail time deposits Expense (279 ) (0.20 )%   (311 ) (0.23 )%   (339 ) (0.25 )%   (380 ) (0.29 )%   (13 ) (0.01 )%     (1,309 ) (0.24 )%   (65 ) (0.02 )%
Long-term FHLB advances Expense 34   0.20 %   32   0.16 %   25   0.10 %   15   0.05 %   (31 ) (0.09 )%     106   0.11 %   (121 ) (0.08 )%
Jr. subordinated debt Expense 42   0.77 %   41   0.76 %   41   0.77 %   40   0.76 %     %     164   0.76 %     %
Net interest income from fair value marks   $ 2,695       $ 1,702       $ 2,218       $ 3,027       $ 320         $ 9,642       $ 2,298    
Purchase accounting effect on tax-equivalent margin     0.27 %     0.17 %     0.23 %     0.32 %     0.04 %       0.24 %     0.07 %
                                                           

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,
2018
  September 30,
2018
  June 30,
2018
  March 31,
2018
  December 31, 
2017
  December 31,
2018
  December 31,
2017
Reconciliation of Net Income to Net Income (core):                          
Net income (loss) attributable to BMBC (a GAAP measure) $ 17,136     $ 16,682     $ 14,688     $ 15,286     $ (6,200 )   $ 63,792     $ 23,016  
Less: Tax-effected non-core noninterest income:                          
Gain on sale of investment securities available for sale             (6 )   (18 )   (6 )   (66 )
Add: Tax-effected non-core noninterest expense items:                          
Due diligence, merger-related and merger integration expenses     307     2,412     3,412     2,280     6,131     3,968  
Add: Federal income tax expense related to re-measurement of net deferred tax asset due to tax reform legislation 31     151     (69 )   590     15,193     703     15,193  
Net income (core) (a non-GAAP measure) $ 17,167     $ 17,140     $ 17,031     $ 19,282     $ 11,255     $ 70,620     $ 42,111  
                           
Calculation of Basic and Diluted Earnings per Common Share (core):                          
Weighted average common shares outstanding 20,225,993     20,270,706     20,238,852     20,202,969     17,632,697     20,234,792     17,150,125  
Dilutive common shares 95,290     167,670     174,726     247,525     211,975     155,375     248,798  
Weighted average diluted shares 20,321,283     20,438,376     20,413,578     20,450,494     17,844,672     20,390,167     17,398,923  
Basic earnings per common share (core) (a non-GAAP measure) $ 0.85     $ 0.85     $ 0.84     $ 0.95     $ 0.64     $ 3.49     $ 2.46  
Diluted earnings per common share (core) (a non-GAAP measure) $ 0.84     $ 0.84     $ 0.83     $ 0.94     $ 0.63     $ 3.46     $ 2.42  
                           
Calculation of Return on Average Tangible Equity:                          
Net income (loss) attributable to BMBC (a GAAP measure) $ 17,136     $ 16,682     $ 14,688     $ 15,286     $ (6,200 )   $ 63,792     $ 23,016  
Add: Tax-effected amortization and impairment of intangible assets 787     705     702     694     440     2,888     1,777  
Net tangible income (numerator) $ 17,923     $ 17,387     $ 15,390     $ 15,980     $ (5,760 )   $ 66,680     $ 24,793  
                           
Average shareholders’ equity $ 556,306     $ 547,907     $ 533,901     $ 526,434     $ 427,318     $ 541,585     $ 399,270  
Less: Average Noncontrolling interest 681     678     685     683     126     684      
Less: Average goodwill and intangible assets (207,893 )   (207,880 )   (208,039 )   (205,529 )   (142,652 )   (207,343 )   (130,791 )
Net average tangible equity (denominator) $ 349,094     $ 340,705     $ 326,547     $ 321,588     $ 284,792     $ 334,926     $ 268,479  
                           
Return on tangible equity (a non-GAAP measure) 20.37 %   20.25 %   18.90 %   20.15 %   (8.02 )%   19.91 %   9.23 %
                           
Calculation of Return on Average Tangible Equity (core):                          
Net income (core) (a non-GAAP measure) $ 17,167     $ 17,140     $ 17,031     $ 19,282     $ 11,255     $ 70,620     $ 42,111  
Add: Tax-effected amortization and impairment of intangible assets 787     705     702     694     440     2,888     1,777  
Net tangible income (core) (numerator) $ 17,954     $ 17,845     $ 17,733     $ 19,976     $ 11,695     $ 73,508     $ 43,888  
                           
Average shareholders’ equity $ 556,306     $ 547,907     $ 533,901     $ 526,434     $ 427,318     $ 541,585     $ 399,270  
Less: Average Noncontrolling interest 681     678     685     683     126     684      
Less: Average goodwill and intangible assets (207,893 )   (207,880 )   (208,039 )   (205,529 )   (142,652 )   (207,343 )   (130,791 )
Net average tangible equity (denominator) $ 349,094     $ 340,705     $ 326,547     $ 321,588     $ 284,792     $ 334,926     $ 268,479  
                           
Return on tangible equity (core) (a non-GAAP measure) 20.40 %   20.78 %   21.78 %   25.19 %   16.29 %   21.95 %   21.86 %

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, 
2018
  September 30,
2018
  June 30,
2018
  March 31, 2018   December 31, 2017   December 31,
2018
  December 31,
2017
Calculation of Tangible Equity Ratio (BMBC):                          
Total shareholders’ equity $ 564,704     $ 551,425     $ 542,503     $ 533,061     $ 528,119          
Less: Noncontrolling interest 685     678     677     684     683          
Less: Goodwill and intangible assets (207,467 )   (208,165 )   (208,139 )   (207,287 )   (205,855 )        
Net tangible equity (numerator) $ 357,922     $ 343,938     $ 335,041     $ 326,458     $ 322,947          
                           
Total assets $ 4,652,485     $ 4,388,442     $ 4,394,203     $ 4,300,376     $ 4,449,720          
Less: Goodwill and intangible assets (207,467 )   (208,165 )   (208,139 )   (207,287 )   (205,855 )        
Tangible assets (denominator) $ 4,445,018     $ 4,180,277     $ 4,186,064     $ 4,093,089     $ 4,243,865          
                           
Tangible equity ratio (BMBC)(1) 8.05 %   8.23 %   8.00 %   7.98 %   7.61 %        
                           
Calculation of Tangible Equity Ratio (BMTC):                          
Total shareholders’ equity $ 591,695     $ 582,698     $ 582,354     $ 569,670     $ 559,581          
Less: Noncontrolling interest 685     678     677     684     683          
Less: Goodwill and intangible assets (194,715 )   (195,337 )   (195,245 )   (194,316 )   (192,807 )        
Net tangible equity (numerator) $ 397,665     $ 388,039     $ 387,786     $ 376,038     $ 367,457          
                           
Total assets $ 4,637,481     $ 4,372,590     $ 4,378,508     $ 4,284,334     $ 4,430,528          
Less: Goodwill and intangible assets (194,715 )   (195,337 )   (195,245 )   (194,316 )   (192,807 )        
Tangible assets (denominator) $ 4,442,766     $ 4,177,253     $ 4,183,263     $ 4,090,018     $ 4,237,721          
                           
Tangible equity ratio (BMTC)(1) 8.95 %   9.29 %   9.27 %   9.19 %   8.67 %        
                                               
Calculation of Return on Average Assets (core)                                              
Return on average assets (GAAP) 1.54 %   1.51 %   1.36 %   1.46 %   (0.68 )%   1.47 %   0.67 %
Effect of adjustment to GAAP net income to core net income %   0.04 %   0.21 %   0.38 %   1.91 %   0.15 %   0.56 %
Return on average assets (core) 1.54 %   1.55 %   1.57 %   1.84 %   1.23 %   1.62 %   1.23 %
                                                   
Calculation of Return on Average Equity (core)                                                  
Return on average equity (GAAP) 12.22 %   12.08 %   11.03 %   11.78 %   (5.76 )%   11.78 %   5.76 %
Effect of adjustment to GAAP net income to core net income 0.02 %   0.33 %   1.76 %   3.07 %   16.21 %   1.26 %   4.79 %
Return on average equity (core) 12.24 %   12.41 %   12.79 %   14.85 %   10.45 %   13.04 %   10.55 %
                                                   
Calculation of Tax-equivalent net interest margin adjusting for the impact of purchase accounting                                                  
Tax-equivalent net interest margin 3.79 %   3.69 %   3.81 %   3.94 %   3.62 %   3.80 %   3.69 %
Effect of fair value marks 0.27 %   0.17 %   0.23 %   0.32 %   0.04 %   0.24 %   0.07 %
Tax-equivalent net interest margin adjusting for the impact of purchase accounting 3.52 %   3.52 %   3.58 %   3.62 %   3.58 %   3.56 %   3.62 %

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


Bryn Mawr Bank Corporation
Appendix – Non-GAAP to GAAP Reconciliations and Calculation of Non-GAAP Performance Measures (unaudited)
(dollars in thousands, except per share data)

Statement on Non-GAAP Measures: The Corporation believes the presentation of the following non-GAAP financial measures provides useful supplemental information that is essential to an investor’s proper understanding of the results of operations and financial condition of the Corporation. Management uses non-GAAP financial measures in its analysis of the Corporation’s performance. These non-GAAP measures should not be viewed as substitutes for the financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.
                           
  As of or For the Three Months Ended   As of or For the Twelve Months Ended
  December 31,
2018
  September 30,
2018
  June 30,
2018
  March 31,
2018
  December 31,
2017
  December 31,
2018
  December 31,
2017
Calculation of Efficiency Ratio:                          
Noninterest expense $ 34,845     $ 33,592     $ 35,836     $ 36,030     $ 31,056     $ 140,303     $ 114,395  
Less: certain noninterest expense items*:                          
Amortization of intangibles (997 )   (891 )   (889 )   (879 )   (677 )   (3,656 )   (2,734 )
Due diligence, merger-related and merger integration expenses     (389 )   (3,053 )   (4,319 )   (3,507 )   (7,761 )   (6,104 )
Noninterest expense (adjusted) (numerator) $ 33,848     $ 32,312     $ 31,894     $ 30,832     $ 26,872     $ 128,886     $ 105,557  
                           
Noninterest income $ 18,097     $ 18,274     $ 20,075     $ 19,536     $ 15,536     $ 75,982     $ 59,132  
Less: non-core noninterest income items:                          
Gain on sale of investment securities available for sale             (7 )   (28 )   (7 )   (101 )
Noninterest income (core) $ 18,097     $ 18,274     $ 20,075     $ 19,529     $ 15,508     $ 75,975     $ 59,031  
Net interest income 37,987     36,729     37,316     37,439     30,321     149,471     115,127  
Noninterest income (core) and net interest income (denominator) $ 56,084     $ 55,003     $ 57,391     $ 56,968     $ 45,829     $ 225,446     $ 174,158  
                           
Efficiency ratio 60.35 %   58.75 %   55.57 %   54.12 %   58.64 %   57.17 %   60.61 %
                           
Supplemental Loan and Allowance Information Used to Calculate Non-GAAP Measures                          
Total Allowance $ 19,426     $ 18,684     $ 19,398     $ 17,662     $ 17,525          
Less: Allowance on acquired loans 97     72     217     92     50          
Allowance on originated loans and leases $ 19,329     $ 18,612     $ 19,181     $ 17,570     $ 17,475          
                           
Total Allowance $ 19,426     $ 18,684     $ 19,398     $ 17,662     $ 17,525          
Loan mark on acquired loans 17,822     24,964     26,705     32,260     34,790          
Total Allowance + Loan mark $ 37,248     $ 43,648     $ 46,103     $ 49,922     $ 52,315          
                           
Total Portfolio loans and leases $ 3,427,154     $ 3,381,475     $ 3,389,501     $ 3,305,795     $ 3,285,858          
Less: Originated loans and leases 2,885,251     2,752,160     2,700,815     2,564,827     2,487,296          
Net acquired loans $ 541,903     $ 629,315     $ 688,686     $ 740,968     $ 798,562          
Add: Loan mark on acquired loans 17,822     24,964     26,705     32,260     34,790          
Gross acquired loans (excludes loan mark) $ 559,725     $ 654,279     $ 715,391     $ 773,228     $ 833,352          
Originated loans and leases 2,885,251     2,752,160     2,700,815     2,564,827     2,487,296          
Total Gross portfolio loans and leases $ 3,444,976     $ 3,406,439     $ 3,416,206     $ 3,338,055     $ 3,320,648          

* 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.

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