Market Overview

Bryn Mawr Bank Corporation Reports Record Quarterly Net Income of $9.4 Million and Record Annual Net Income of $36.0 Million, Driven by 2016 Annual Loan Growth of 11.7%, Wealth Assets Reach $11.3 Billion

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BRYN MAWR, Pa., Jan. 19, 2017 (GLOBE NEWSWIRE) -- Bryn Mawr Bank Corporation (NASDAQ: BMTC) (the "Corporation"), parent of The Bryn Mawr Trust Company (the "Bank"), today reported net income of $9.4 million and diluted earnings per share of $0.55 for the three months ended December 31, 2016, as compared to net income of $9.4 million, or $0.55 diluted earnings per share, for the three months ended September 30, 2016 and a net loss of $6.4 million, or $(0.37) diluted earnings per share, for the three months ended December 31, 2015.

On a non-GAAP basis, core net income, which excludes certain non-core income and expense items, as detailed in the appendix to this earnings release, was also $9.4 million, or $0.55 diluted earnings per share, for the three months ended December 31, 2016 as compared to $9.4 million, or $0.55 diluted earnings per share, for the three months ended September 30, 2016 and $7.5 million, or $0.44 diluted earnings per share, for the three months ended December 31, 2015. 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 2016 on a positive note, with fourth quarter and annual net income, both GAAP and core, reaching all-time highs," commented Frank Leto, President and Chief Executive Officer, continuing, "The outstanding loan growth we saw during the year, coupled with the momentum in our wealth management business positions us well going into 2017." Mr. Leto added, "Although the future operating environment may be more difficult to predict, at this juncture, we are confident that our unique blend of expertise and customer service, coupled with an expanding digital capability and enhanced product offerings, will ensure we remain poised to take advantage of future opportunities."

On January 19, 2017, the Board of Directors of the Corporation declared a quarterly dividend of $0.21 per share, payable March 1, 2017 to shareholders of record as of February 2, 2017.

SIGNIFICANT ITEMS OF NOTE
Results of Operations – Fourth Quarter 2016 Compared to Third Quarter 2016

  • Net income for the three months ended December 31, 2016 was $9.4 million, as compared to $9.4 million for the three months ended September 30, 2016. The recovery of mortgage servicing rights ("MSR"s), the increase in net interest income, and the increase in fees for wealth management services were offset by a decrease in gain on sale of residential mortgage loans and an increase in other operating expense.
     
  • Net interest income for the three months ended December 31, 2016 was $27.0 million, an increase of $273 thousand from $26.7 million for the three months ended September 30, 2016. Average interest-earning assets increased by $75.8 million, but decreased in yield by 4 basis points, while average interest-bearing liabilities increased by $58.8 million, accompanied by a 1 basis point increase in rate paid.
     
  • The tax-equivalent net interest margin of 3.65% for the fourth quarter of 2016 decreased 6 basis points from 3.71% for the third quarter of 2016. The decrease was primarily the result of a 2 basis point decrease in tax-equivalent yield earned on average loans, which totaled $2.5 billion for the three months ended December 31, 2016, coupled with a 3 basis point increase in tax-equivalent rate paid on average interest-bearing deposits, which totaled $1.8 billion for the three months ended December 31, 2016.
     
  • Non-interest income for the three months ended December 31, 2016 decreased $773 thousand from the third quarter of 2016. The decrease was largely the result of a $507 thousand decrease in gain on sale of residential mortgage loans and a $305 thousand decrease in other operating income. Partially offsetting these decreases was a $227 thousand increase in fees for wealth management services.
     
  • Non-interest expense for the three months ended December 31, 2016 decreased $519 thousand, to $25.0 million, as compared to $25.5 million for the third quarter of 2016. Largely contributing to the decrease was a $580 thousand recovery of MSRs during the fourth quarter and an $879 thousand decrease in Pennsylvania bank shares tax. The recovery of MSRs was a result of rising interest rates which reversed the impairment recorded in the second quarter of 2016. The reduction in Pennsylvania bank shares tax resulted from $855 thousand in tax credits received in return for $950 thousand of contributions to local schools under the Pennsylvania Educational Improvement Tax Credit (EITC) program. These contributions are reflected in the $857 thousand increase in other operating expense.  
     
  • For the three months ended December 31, 2016, net loan and lease charge-offs totaled $1.3 million, as compared to $704 thousand for the third quarter of 2016. The provision for loan and lease losses (the "Provision") for the three months ended December 31, 2016 was $1.1 million, a decrease of $353 thousand from the third quarter of 2016.
     
  • Income tax expense for the fourth quarter of 2016 increased by $338 thousand as compared to the third quarter of 2016. The increase in the effective tax rate from the third quarter of 2016 to the fourth quarter of 2016 from 31.7% to 33.2%, respectively, was the result of the early adoption of ASC 2016-09 in the third quarter of 2016. ASC 2016-09 allows for the excess tax benefit from stock-based compensation to be recorded as a discrete item on the income statement. During the third quarter of 2016, discrete tax items totaled $385 thousand as compared to $120 thousand in the fourth quarter of 2016.        

Results of Operations – Fourth Quarter 2016 Compared to Fourth Quarter 2015

  • Net income for the three months ended December 31, 2016 was $9.4 million, or $0.55 diluted earnings per share, as compared to a loss of $6.4 million, or diluted earnings per share of $(0.37) for the same period in 2015. The primary driver of the loss in the fourth quarter of 2015 was the loss on settlement of the corporate pension plan, which resulted in a $17.4 million pre-tax charge. On a core basis (a non-GAAP measure detailed in the appendix to this earnings release), core net income for the fourth quarter of 2016 of $9.4 million was a $1.9 million increase from core net income of $7.5 million for the fourth quarter of 2015. The increase in core net income was driven by a $1.6 million increase in net interest income, a $718 thousand decrease in the Provision and a $332 thousand increase in fees for wealth management services. In addition, decreases of $260 thousand, $265 thousand and $158 thousand in furniture, fixtures and equipment, advertising and Pennsylvania bank shares tax, respectively, contributed to the increase in net income.
     
  • Net interest income for the three months ended December 31, 2016 was $27.0 million, an increase of $1.6 million, or 6.1%, from $25.4 million for the same period in 2015. The increase in net interest income was primarily related to the growth in average loan balances between the periods. Average loans and leases for the three months ended December 31, 2016 increased by $270.2 million from the same period in 2015. The increase in average loan balances was offset by a 14 basis point decrease in tax-equivalent yield earned on loans and leases. The net effect of the yield decrease and volume increase on average loans and leases was a $2.2 million increase in tax-equivalent interest income on loans. Partially offsetting the increase in average loans was a $197.7 million increase in average interest-bearing deposits accompanied by a 13 basis point increase in rate paid on deposits.
     
  • The tax-equivalent net interest margin of 3.65% for the three months ended December 31, 2016 was a 12 basis point decrease from 3.77% for the same period in 2015. The primary reason for the decline in the margin was the 14 basis point decrease in tax-equivalent yield earned on loans and the 13 basis point increase in rate paid on deposits.
     
  • Non-interest income for the three months ended December 31, 2016 decreased $549 thousand as compared to the same period in 2015. Contributing to this decrease was a $273 thousand decrease in gain on sale of residential mortgage loans, as interest rate increases during the fourth quarter of 2016 have slowed originations. In addition, a $233 thousand decrease in other operating income, largely related to the income recognized from the pay-off, in full, of purchased credit-impaired loans, which decreased from $319 thousand in the fourth quarter of 2015 to $159 thousand in the fourth quarter of 2016, contributed to the decrease in non-interest income.
     
  • Non-interest expense for the three months ended December 31, 2016 decreased $22.0 million, primarily related to the $17.4 million loss on settlement of the corporate pension plan, which occurred in the fourth quarter of 2015. Excluding the non-core expense items detailed in the Appendix to this press release, decreases of $260 thousand, $265 thousand and $158 thousand in furniture, fixtures and equipment, advertising and Pennsylvania bank shares tax, respectively, contributed to the decrease in non-interest expense.
     
  • The Provision for the three months ended December 31, 2016 of $1.1 million was a $718 thousand decrease from the same period in 2015. The level of net charge-offs in the fourth quarter of 2016 was $538 thousand lower than that in the fourth quarter of 2015. On an annual basis, net charge-offs for 2016 decreased by 13.7% from $3.1 million in 2015 to 2.7 million in 2016. The credit quality of the loan portfolio remains strong.

             

Financial Condition – December 31, 2016 Compared to December 31, 2015

  • Total portfolio loans and leases of $2.54 billion as of December 31, 2016 increased by $266.4 million, or 11.7%, from December 31, 2015. Loan growth was concentrated in the commercial mortgage, commercial and industrial, and construction categories, which increased $146.6 million, $55.3 million and $51.5 million, respectively, since December 31, 2015.
     
  • The allowance for loan and lease losses (the "Allowance") as of December 31, 2016 was $17.5 million, or 0.69% of portfolio loans as compared to $15.9 million, or 0.70% of portfolio loans and leases, as of December 31, 2015. In addition to the ratio of Allowance to portfolio loans, management also calculates two non-GAAP measures: the Allowance as a percentage of originated loans and leases, which was 0.78% as of December 31, 2016, as compared to 0.84% as of December 31, 2015, and the Allowance plus the remaining loan mark as a percentage of gross loans, which was 1.17% as of December 31, 2016, as compared to 1.44% as of December 31, 2015. A reconciliation of these and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release.
     
  • Available for sale investment securities as of December 31, 2016 were $567.0 million, an increase of $218.0 million from December 31, 2015. The primary contributor to the increase in the portfolio was the purchase, during December 2016, of $200 million of short-term U.S. Treasury bills.
     
  • Total assets as of December 31, 2016 were $3.42 billion, an increase of $390.6 million from December 31, 2015. The purchase of $200 million of short-term U.S. Treasury bills and the $266.4 million increase in the loan portfolio were the primary causes for the increase.
     
  • Wealth assets under management, administration, supervision and brokerage totaled $11.33 billion as of December 31, 2016, an increase of $2.96 billion, or 35.4%, from December 31, 2015. The significant growth in the wealth asset portfolio is largely comprised of accounts for which the Corporation provides trust and custodial services, which pay fees at lower rates per dollar of assets, or are billed on a flat-fee basis. As a result, fees for wealth management services are not increasing at the same rate at which the assets grow. However, as demonstrated by the increase in wealth management fees for the fourth quarter of 2016 as compared to both the fourth quarter of 2015 and the third quarter of 2016, the increased volume of assets is currently compensating for the lower yields.
     
  • Deposits of $2.58 billion as of December 31, 2016 increased $327.0 million from December 31, 2015. Noninterest-bearing deposits increased by $109.5 million, retail time deposits and savings deposits increased by $93.7 million and $44.9 million, respectively, NOW accounts increased by $40.6 million and wholesale time deposits increased by $19.9 million.
     
  • Borrowings of $393.9 million as of December 31, 2016 was a $44.9 million increase from December 31, 2015. The increase was comprised of a $110.0 million increase in short-term Federal Home Loan Bank ("FHLB") borrowings, drawn at year end to finance the purchase of $200 million of short-term U.S. Treasury bills, partially offset by a $65.1 million decrease in long-term FHLB advances which matured during 2016.
     
  • The capital ratios for the Bank and the Corporation, as of December 31, 2016, as shown in the attached tables, indicate levels well above the regulatory minimum to be considered "well capitalized." At the Corporation level, all capital ratios have decreased from their December 31, 2015 levels, primarily due to the increase in total assets and the increase in other comprehensive loss associated with available for sale investment securities. On a linked-quarter basis, most capital levels at the Corporation have increased from their September 30, 2016 levels, primarily due to increases in retained earnings offset by dividends paid and increases in other comprehensive loss associated with available for sale investment securities. At the Bank level, all capital levels have increased from their December 31, 2015 levels, largely as a result of increases in retained earnings and a $15 million capital infusion from the Corporation, offset by a $16 million dividend paid to the Corporation and increases in other comprehensive losses associated with the available for sale investment portfolio. On a linked-quarter basis, all capital levels at the Bank have decreased from their September 30, 2016 level, primarily due to the $16 million dividend paid to the Corporation and the growth in assets between the dates.

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, that the integration of acquired businesses with the Corporation's 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; 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 EndedFor the Twelve Months Ended  
 December 31, 2016 September 30, 2016 June 30, 2016 March 31, 2016December 31, 2015December 31, 2016 December 31, 2015  
Consolidated Balance Sheet (selected items)             
Interest-bearing deposits with banks$34,206  $30,118  $20,481  $33,954  $124,615      
Investment securities (AFS, HTM and Trading) 573,763   373,508   371,906   369,461   352,916      
Loans held for sale 9,621   11,506   11,882   7,807   8,987      
Portfolio loans and leases 2,535,425   2,493,357   2,423,821   2,378,841   2,268,988      
Allowance for loan and lease losses ("ALLL") (17,486)  (17,744)  (17,036)  (16,845)  (15,857)     
Goodwill and other intangible assets 125,170   126,000   126,888   127,777   128,668      
Total assets 3,421,530   3,174,080   3,090,090   3,058,247   3,030,997      
Deposits - interest-bearing 1,843,495   1,759,862   1,720,477   1,700,550   1,626,041      
Deposits - non-interest-bearing 736,180   718,015   689,214   643,492   626,684      
Short-term borrowings 204,151   50,065   19,119   37,010   94,167      
Long-term FHLB advances and other borrowings 189,742   204,772   224,802   249,832   254,863      
Subordinated notes 29,532   29,518   29,505   29,491   29,479      
Total liabilities 3,040,403   2,795,621   2,717,623   2,693,070   2,665,286      
Shareholders' equity 381,127   378,459   372,467   365,177   365,711      
              
Average Balance Sheet (selected items)             
Interest-bearing deposits with banks$55,298  $33,532  $44,950  $39,050  $90,832  $43,214  $161,032   
Investment securities (AFS, HTM and Trading) 386,658   373,616   371,153   360,957   354,239   373,134   358,822   
Loans held for sale 11,591   12,887   7,844   5,481   7,531   9,466   7,086   
Portfolio loans and leases 2,506,376   2,464,085   2,404,799   2,303,103   2,240,189   2,419,950   2,153,542   
Total interest-earning assets 2,959,923   2,884,120   2,828,746   2,708,591   2,692,791   2,845,764   2,680,482   
Goodwill and intangible assets 125,614   126,505   127,402   128,296   129,292   126,950   128,181   
Total assets 3,215,868   3,142,019   3,089,953   2,973,148   2,959,011   3,105,650   2,942,513   
Deposits - interest-bearing 1,809,276   1,729,689   1,717,252   1,633,651   1,611,574   1,722,724   1,636,301   
Short-term borrowings 40,629   40,966   32,328   34,158   26,092   37,041   36,010   
Long-term FHLB advances and other borrowings 198,454   218,920   236,248   250,015   254,880   225,815   254,828   
Subordinated notes 29,523   29,509   29,496   29,482   29,471   29,503   12,013   
Total interest-bearing liabilities 2,077,882   2,019,084   2,015,324   1,947,306   1,922,017   2,015,083   1,939,152   
Total liabilities 2,837,825   2,769,065   2,723,838   2,612,276   2,593,651   2,736,121   2,569,425   
Shareholders' equity 378,043   372,954   366,115   360,872   365,360   369,529   373,088   
              
              
              
Bryn Mawr Bank Corporation             
Summary Financial Information (unaudited)             
(dollars in thousands, except per share data)             
 As of or For the Three Months EndedFor the Twelve Months Ended  
 December 31, 2016 September 30, 2016 June 30, 2016 March 31, 2016December 31, 2015December 31, 2016 December 31, 2015  
Income Statement             
Net interest income$26,990  $26,717  $26,627  $25,902  $25,429  $106,236  $100,127   
Provision for loan and lease losses 1,059   1,412   445   1,410   1,777   4,326   4,396   
Noninterest income 13,119   13,892   13,820   13,208   13,668   54,039   55,960   
Noninterest expense 24,958   25,477   26,259   25,051   46,951   101,745   125,765   
Income tax expense (benefit)   4,684     4,346     4,810     4,328     (3,276)    18,168     9,172   
Net income (loss) 9,408   9,374   8,933   8,321   (6,355)  36,036   16,754   
Basic earnings per share 0.56   0.56   0.53   0.49   (0.37)  2.14   0.96   
Diluted earnings per share 0.55   0.55   0.52   0.49   (0.37)  2.12   0.94   
Net income (core) (1) 9,402   9,392   8,961   8,331   7,506   36,086   33,636   
Basic earnings per share (core) (1) 0.56   0.56   0.53   0.49   0.44   2.14   1.92   
Diluted earnings per share (core) (1) 0.55   0.55   0.53   0.49   0.44   2.12   1.89   
Cash dividends paid per share 0.21   0.21   0.20   0.20   0.20   0.82   0.78   
Profitability Indicators             
Return on average assets 1.16%  1.19%  1.16%  1.13%  -0.86%  1.16%  0.57%  
Return on average equity 9.90%  10.00%  9.81%  9.27%  -7.00%  9.75%  4.49%  
Return on tangible equity(1) 15.68%  16.06%  16.02%  15.39%  -9.36%  15.79%  7.96%  
Tax-equivalent net interest margin 3.65%  3.71%  3.81%  3.87%  3.77%  3.76%  3.75%  
Efficiency ratio(1) 60.17%  60.51%  62.66%  61.75%  63.09%  61.27%  61.25%  
Residential mortgage loans sold - servicing retained 44,763   40,462   26,944   25,965   24,063   112,169   107,351   
Residential mortgage loans sold - servicing released   4,632     10,522     5,278     2,397     7,150     20,432     29,630   
Total residential mortgage loans sold$49,395  $50,984  $32,222  $28,362  $31,213  $132,601  $136,981   
Gain on sale of mortgage loans$473  $473  $473  $473  $490      
Percentage gain on residential mortgage loans sold 0.96%  0.93%  1.47%  1.67%  1.57%     
Residential mortgage loans serviced for others$631,889  $618,134  $610,418  $605,366  $601,939      
Share Data             
Closing share price$42.15  $31.99  $29.20  $25.73  $28.72      
Book value per common share$22.32  $22.08  $21.76  $21.48  $21.40      
Tangible book value per common share$15.11  $14.94  $14.60  $14.13  $13.89      
Price / book value 188.87%  144.91%  134.19%  119.80%  134.19%     
Price / tangible book value 278.96%  214.07%  200.05%  182.10%  206.84%     
Weighted average diluted shares outstanding 17,164,675   17,072,358   17,027,419   16,883,364   17,129,234   17,037,114   17,756,571   
Shares outstanding, end of period 16,939,715   16,893,878   16,824,564   16,801,801   17,071,523      
Wealth Management Information:             
              
Wealth assets under mgmt, administration, supervision and brokerage (2)$11,328,457  $9,969,745  $9,632,521  $9,281,743  $8,364,805      
Fees for wealth management services$9,327  $9,100  $9,431  $8,832  $8,995      
                         
                         
                         
Bryn Mawr Bank Corporation             
Summary Financial Information (unaudited)             
(dollars in thousands, except per share data)             
 As of or For the Three Months EndedFor the Twelve Months Ended  
 December 31, 2016 September 30, 2016 June 30, 2016 March 31, 2016December 31, 2015December 31, 2016 December 31, 2015  
              
Capital Ratios             
Bryn Mawr Trust Company             
Tier I capital to risk weighted assets ("RWA") 10.51%  10.99%  10.94%  10.69%  10.12%     
Total (Tier II) capital to RWA 11.20%  11.70%  11.65%  11.39%  10.78%     
Tier I leverage ratio 8.73%  9.17%  9.06%  9.15%  8.51%     
Tangible equity ratio (1) 7.85%  8.85%  8.79%  8.53%  7.74%     
Common equity Tier I capital to RWA 10.51%  10.99%  10.94%  10.69%  10.12%     
              
Bryn Mawr Bank Corporation             
Tier I capital to RWA 10.52%  10.42%  10.45%  10.22%  10.72%     
Total (Tier II) capital to RWA 12.36%  12.30%  12.35%  12.13%  12.61%     
Tier I leverage ratio 8.74%  8.70%  8.65%  8.76%  9.02%     
Tangible equity ratio (1) 7.76%  8.28%  8.29%  8.10%  8.17%     
Common equity Tier I capital to RWA 10.52%  10.42%  10.45%  10.22%  10.72%     
              
Asset Quality Indicators             
              
Net loan and lease charge-offs ("NCO"s)$1,317  $704  $254  $422  $1,855  $2,697  $3,125   
Nonperforming loans and leases ("NPL"s)$8,363  $9,883  $9,617  $9,636  $10,244      
Other real estate owned ("OREO")   1,017     867     784     756     2,638      
Total nonperforming assets ("NPA"s)$   9,380   $   10,750   $   10,401   $   10,392   $   12,882       
              
Nonperforming loans and leases 30 or more days past due$6,075  $4,339  $5,599  $6,193  $5,678      
Performing loans and leases 30 to 89 days past due 7,768   2,491   3,564   6,296   5,601      
Performing loans and leases 90 or more days past due   -     -     -     -     -      
Total delinquent loans and leases$   13,843   $   6,830   $   9,163   $   12,489   $   11,279       
              
Delinquent loans and leases to total loans and leases 0.54%  0.27%  0.38%  0.52%  0.50%     
Delinquent performing loans and leases to total loans and leases 0.31%  0.10%  0.15%  0.26%  0.25%     
NCOs / average loans and leases (annualized) 0.21%  0.11%  0.04%  0.07%  0.33%  0.11%  0.14%  
NPLs / total portfolio loans and leases 0.33%  0.40%  0.40%  0.41%  0.45%     
NPAs / total loans and leases and OREO 0.37%  0.43%  0.43%  0.44%  0.56%     
ALLL / NPLs 209.09%  179.54%  177.14%  174.81%  154.79%     
ALLL / portfolio loans 0.69%  0.71%  0.70%  0.71%  0.70%     
ALLL on originated loans and leases / Originated loans and leases (1) 0.78%  0.81%  0.81%  0.83%  0.84%     
(Total Allowance + Loan mark) / Total Gross portfolio loans and leases (1) 1.17%  1.24%  1.30%  1.37%  1.44%     
              
Troubled debt restructurings ("TDR"s) included in NPLs$2,375  $1,680  $1,779  $1,756  $1,935      
TDRs in compliance with modified terms   6,395     6,305     4,984     4,893     4,880      
Total TDRs$   8,770   $   7,985   $   6,763   $   6,649   $   6,815       
              
(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.
        

 

 

Bryn Mawr Bank Corporation             
Detailed Balance Sheets (unaudited)             
(dollars in thousands)             
              
 December 31, 2016 September 30, 2016 June 30, 2016 March 31, 2016 December 31, 2015    
Assets             
Cash and due from banks$  16,559  $  18,905  $  13,710  $  15,594  $  18,452     
Interest-bearing deposits with banks   34,206     30,118     20,481     33,954     124,615     
  Cash and cash equivalents   50,765     49,023     34,191     49,548     143,067     
Investment securities, available for sale   566,996     366,910     365,470     365,819     348,966     
Investment securities, held to maturity   2,879     2,896     2,915     -     -     
Investment securities, trading   3,888     3,702     3,521     3,642     3,950     
Loans held for sale   9,621     11,506     11,882     7,807     8,987     
Portfolio loans and leases, originated   2,240,988     2,176,549     2,090,070     2,015,683     1,883,869     
Portfolio loans and leases, acquired   294,437     316,808     333,751     363,158     385,119     
  Total portfolio loans and leases   2,535,425     2,493,357     2,423,821     2,378,841     2,268,988     
Less: Allowance for losses on originated loan and leases   (17,458)    (17,716)    (17,008)    (16,817)    (15,857)    
Less: Allowance for losses on acquired loan and leases   (28)    (28)    (28)    (28)    -     
  Total allowance for loan and lease losses   (17,486)    (17,744)    (17,036)    (16,845)    (15,857)    
  Net portfolio loans and leases   2,517,939     2,475,613     2,406,785     2,361,996     2,253,131     
Premises and equipment   41,778     42,559     43,607     44,712     45,339     
Accrued interest receivable   8,533     8,066     8,144     8,205     7,869     
Mortgage servicing rights   5,582     4,793     4,646     5,182     5,142     
Bank owned life insurance   39,279     39,055     38,836     38,616     38,371     
Federal Home Loan Bank ("FHLB") stock   13,185     13,185     10,618     12,142     12,942     
Goodwill   104,765     104,765     104,765     104,765     104,765     
Intangible assets   20,405     21,235     22,123     23,012     23,903     
Other investments   12,747     9,121     8,722     8,487     9,460     
Other assets   23,168     21,651     23,865     24,314     25,105     
  Total assets$  3,421,530  $  3,174,080  $  3,090,090  $  3,058,247  $  3,030,997     
              
Liabilities             
Deposits             
  Noninterest-bearing$  736,180  $  718,015  $  689,214  $  643,492  $  626,684     
  Interest-bearing   1,843,495     1,759,862     1,720,477     1,700,550     1,626,041     
  Total deposits   2,579,675     2,477,877     2,409,691     2,344,042     2,252,725     
Short-term borrowings   204,151     50,065     19,119     37,010     94,167     
Long-term FHLB advances and other borrowings   189,742     204,772     224,802     249,832     254,863     
Subordinated notes   29,532     29,518     29,505     29,491     29,479     
Accrued interest payable   2,734     1,854     1,846     1,294     1,851     
Other liabilities   34,569     31,535     32,660     31,401     32,201     
  Total liabilities   3,040,403     2,795,621     2,717,623     2,693,070     2,665,286     
              
Shareholders' equity             
Common stock   21,111     21,064     20,972     20,949     20,931     
Paid-in capital in excess of par value   232,806     231,398     230,298     229,432     228,814     
Less: common stock held in treasury, at cost   (66,950)    (66,895)    (66,200)    (66,140)    (58,144)    
Accumulated other comprehensive income (loss), net of tax   (2,409)    2,128     2,488     1,502     (412)    
Retained earnings   196,569     190,764     184,909     179,434     174,522     
  Total shareholders equity   381,127     378,459     372,467     365,177     365,711     
  Total liabilities and shareholders' equity$  3,421,530  $  3,174,080  $  3,090,090  $  3,058,247  $  3,030,997     
              

 

 

Bryn Mawr Bank Corporation             
Supplemental Balance Sheet Information (unaudited)             
(dollars in thousands)             
 Portfolio Loans and Leases as of    
 December 31, 2016 September 30, 2016 June 30, 2016 March 31, 2016 December 31, 2015    
Commercial mortgages$  1,110,897  $  1,089,621  $  1,055,934  $  1,044,415  $  964,259     
Home equity loans and lines   208,000     206,578     202,989     205,896     209,473     
Residential mortgages   413,540     418,408     414,863     412,006     406,404     
Construction   141,964     133,269     133,313     119,193     90,421     
  Total real estate loans   1,874,401     1,847,876     1,807,099     1,781,510     1,670,557     
                        
Commercial & Industrial   579,791     565,497     538,684     523,053     524,515     
Consumer   25,341     23,717     21,561     21,427     22,129     
Leases   55,892     56,267     56,477     52,851     51,787     
  Total non-real estate loans and leases   661,024     645,481     616,722     597,331     598,431     
  Total portfolio loans and leases$  2,535,425  $  2,493,357  $  2,423,821  $  2,378,841  $  2,268,988     
              
              
 Nonperforming Loans and Leases as of    
 December 31, 2016 June 30, 2016 March 31, 2016 December 31, 2015 September 30, 2015    
Commercial mortgages$  320  $  139  $  139  $  872  $  829     
Home equity loans and lines   2,297     2,827     3,011     1,953     2,027     
Residential mortgages   2,661     2,845     2,909     2,923     3,212     
Construction   -     -     -     12     34     
  Total nonperforming real estate loans   5,278     5,811     6,059     5,760     6,102     
Commercial & Industrial   2,369     3,960     3,457     3,822     4,133     
Consumer   2     2     4     -     -     
Leases   137     110     97     54     9     
  Total nonperforming non-real estate loans and leases   2,508     4,072     3,558     3,876     4,142     
  Total nonperforming portfolio loans and leases$  7,786  $  9,883  $  9,617  $  9,636  $  10,244     
              
              
 Net Loan and Lease Charge-Offs (Recoveries) for the Three Months Ended    
 December 31, 2016 June 30, 2016 March 31, 2016 December 31, 2015 September 30, 2015    
Commercial mortgage$  (51) $  (4) $  (3) $  107  $  (4)    
Home equity loans and lines   69     375     11     71     561     
Residential   28     2     262     (35)    239     
Construction   (1)    -     (62)    -     (1)    
  Total net charge-offs (recoveries) of real estate loans   45     373     208     143     795     
Commercial & Industrial   1,128     95     (44)    25     902     
Consumer   42     58     30     20     55     
Leases   102     178     60     234     103     
  Total net charge-offs of non-real estate loans and leases   1,272     331     46     279     1,060     
  Total net charge-offs$  1,317  $  704  $  254  $  422  $  1,855     
              

 


Bryn Mawr Bank Corporation            
Supplemental Balance Sheet Information (unaudited)            
(dollars in thousands)            
 Investment Securities Available for Sale, at Fair Value   
 December 31, 2016 September 30, 2016 June 30, 2016 March 31, 2016 December 31, 2015   
U.S. Treasury securities $  200,097  $  101  $  102  $  102  $  101    
Obligations of the U.S. Government and agencies    82,198     76,598     86,134     96,080     101,495    
State & political subdivisions - tax-free   33,005     36,735     39,047     39,502     41,442    
State & political subdivisions - taxable   525     529     532     1,093     524    
Mortgage-backed securities   185,951     184,919     186,354     183,127     158,689    
Collateralized mortgage obligations   48,694     51,344     36,702     29,106     29,799    
Other debt securities   1,299     1,450     1,450     1,700     1,691    
Bond mutual funds   11,895     11,847     11,774     11,725     11,810    
Other investments   3,332     3,387     3,375     3,384     3,415    
  Total$  566,996  $  366,910  $  365,470  $  365,819  $  348,966    
             
             
 Unrealized Gain (Loss) on Investment Securities Available for Sale   
 December 31, 2016 September 30, 2016 June 30, 2016 March 31, 2016 December 31, 2015   
U.S. Treasury securities $  3  $  -  $  1  $  1  $  -    
Obligations of the U.S. Government and agencies    (913)    946     1,183     984     153    
State & political subdivisions - tax-free   (96)    131     240     173     75    
State & political subdivisions - taxable   2     5     8     18     (1)   
Mortgage-backed securities   (47)    3,801     3,958     3,026     1,267    
Collateralized mortgage obligations   (794)    253     496     330     43    
Other debt securities   (1)    -     -     -     (9)   
Bond mutual funds   (61)    (109)    (182)    (231)    (146)   
Other investments   13     34     (66)    (155)    (192)   
  Total$  (1,894) $  5,061  $  5,638  $  4,146  $  1,190    
             
             
 Deposits   
 December 31, 2016 September 30, 2016 June 30, 2016 March 31, 2016 December 31, 2015   
Interest-bearing deposits:            
  Interest-bearing checking$  379,424  $  333,055  $  333,425  $  335,240  $  338,861    
  Money market   761,657     725,116     718,144     773,637     749,726    
  Savings   232,193     228,391     217,877     190,477     187,299    
  Wholesale non-maturity deposits   74,272     64,664     58,690     62,454     67,717    
  Wholesale time deposits   73,037     99,052     113,274     131,145     53,185    
  Retail time deposits    322,912     309,584     279,067     207,597     229,253    
  Total interest-bearing deposits   1,843,495     1,759,862     1,720,477     1,700,550     1,626,041    
  Noninterest-bearing deposits   736,180     718,015     689,214     643,492     626,684    
  Total deposits$  2,579,675  $  2,477,877  $  2,409,691  $  2,344,042  $  2,252,725    
             

 


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, 2016 September 30, 2016 June 30, 2016 March 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015  
Interest income:               
Interest and fees on loans and leases$28,230  $27,931  $27,679  $26,696  $26,080  $110,536  $102,432   
Interest on cash and cash equivalents 53   27   42   46   63   168   409   
Interest on investment securities:   1,639     1,556     1,565     1,527     1,623     6,287     5,701   
Taxable 1,467   1,373   1,384   1,351   1,402   5,575   5,018   
Non-taxable 118   125   126   128   131   497   497   
Dividends   54     58     55     48     90     215   186   
Total interest income   29,922     29,514     29,286     28,269     27,766     116,991     108,542   
Interest expense:               
Interest on deposits 1,780   1,575   1,402   1,076   1,046   5,833   4,212   
Interest on short-term borrowings 22   34   20   17   9   93   48   
Interest on FHLB advances and other borrowings 760   818   867   908   912   3,353   3,554   
Interest on subordinated notes   370     370     370     366     370     1,476     601   
Total interest expense   2,932     2,797     2,659     2,367     2,337     10,755     8,415   
Net interest income 26,990   26,717   26,627   25,902   25,429   106,236   100,127   
Provision for loan and lease losses (the "Provision")   1,059     1,412     445     1,410     1,777     4,326     4,396   
Net interest income after Provision 25,931   25,305   26,182   24,492   23,652   101,910   95,731   
Noninterest income:               
Fees for wealth management services 9,327   9,100   9,431   8,832   8,995   36,690   36,894   
Insurance revenue 715   886   845   1,276   842   3,722   3,745   
Service charges on deposits 688   688   713   702   742   2,791   2,927   
Loan servicing and other fees 411   497   539   492   502   1,939   2,087   
Net gain on sale of loans 478   985   896   760   751   3,119   3,022   
Net gain (loss) on sale of investment securities available for sale 9   (28)  (43)  (15)  58   (77)  931   
Net (loss) gain on sale of other real estate owned -   -   -   (76)  33   (76)  123   
Dividends on FHLB and FRB stocks 309   277   263   214   330   1,063   1,382   
Other operating income   1,182     1,487     1,176     1,023     1,415     4,868     4,849   
Total noninterest income 13,119   13,892   13,820   13,208   13,668   54,039   55,960   
Noninterest expense:               
Salaries and wages 11,855   11,621   12,197   11,738   11,700   47,411   44,575   
Employee benefits 2,207   2,420   2,436   2,485   2,268   9,548   10,205   
Loss on pension termination -   -   -   -   17,377   -   17,377   
Occupancy and bank premises 2,407   2,349   2,367   2,488   2,474   9,611   10,305   
Branch lease termination expense -   -   -   -   929   -   929   
Furniture, fixtures and equipment 1,869   1,837   1,895   1,919   2,129   7,520   6,841   
Advertising 391   334   372   284   656   1,381   2,102   
Amortization of intangible assets 830   888   889   891   937   3,498   3,827   
Impairment of intangible assets -   -   -   -   387   -   387   
(Recovery) impairment of mortgage servicing rights ("MSRs") (580)  29   599   83   (17)  131   70   
Due diligence, merger-related and merger integration expenses -   -   -   -   1,860   -   6,670   
Professional fees 963   937   946   813   1,010   3,659   3,353   
Pennsylvania bank shares tax (204)  675   640   638   (46)  1,749   1,253   
Information technology 857   881   875   1,048   874   3,661   3,443   
Other operating expenses   4,363     3,506     3,043     2,664     4,413     13,576     14,428   
Total noninterest expense 24,958   25,477   26,259   25,051   46,951   101,745   125,765   
Income (loss) before income taxes 14,092   13,720   13,743   12,649   (9,631)  54,204   25,926   
Income tax expense (benefit)   4,684     4,346     4,810     4,328     (3,276)    18,168     9,172   
  Net income (loss)$  9,408  $  9,374  $  8,933  $  8,321  $  (6,355) $  36,036  $  16,754   
Per share data:               
Weighted average shares outstanding 16,916,705   16,860,727   16,812,219   16,848,202   17,129,234   16,859,623   17,488,325   
Dilutive common shares   247,970     211,631     215,200     35,162     -     177,491     268,246   
Adjusted weighted average diluted shares 17,164,675   17,072,358   17,027,419   16,883,364   17,129,234   17,037,114   17,756,571   
Basic earnings (loss) per common share$0.56  $0.56  $0.53  $0.49  $(0.37) $2.14  $0.96   
Diluted earnings (loss) per common share$0.55  $0.55  $0.52  $0.49  $(0.37) $2.12  $0.94   
Dividend declared per share$0.21  $0.21  $0.20  $0.20  $0.20  $0.82  $0.78   
Effective tax rate 33.24%  31.68%  35.09%  34.59%  34.02%  33.52%  35.38%  

 

 

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, 2016September 30, 2016June 30, 2016March 31, 2016December 31, 2015 December 31, 2016December 31, 2015
(dollars in thousands) Average BalanceInterest Income/ ExpenseAverage Rates Earned/ PaidAverage BalanceInterest Income/ ExpenseAverage Rates Earned/ PaidAverage BalanceInterest Income/ ExpenseAverage Rates Earned/ PaidAverage BalanceInterest Income/ ExpenseAverage Rates Earned/ PaidAverage BalanceInterest Income/ ExpenseAverage Rates Earned/ Paid Average BalanceInterest Income/ ExpenseAverage Rates Earned/ PaidAverage BalanceInterest Income/ ExpenseAverage Rates Earned/ Paid
                        
Assets:                       
Interest-bearing deposits with other banks $  55,298 $  53 0.38%$  33,532 $  27 0.32%$  44,950 $  42 0.38%$  39,050 $  46 0.47%$  90,832 $  63 0.28% $  43,214 $  168 0.39%$  184,689 $  346 0.25%
Investment securities - available for sale:                       
  Taxable    344,931    1,498 1.73%   329,293    1,423 1.72%   325,893    1,433 1.77%   316,353    1,397 1.78%   307,524    1,432 1.85%    329,161    5,784 1.76%   318,510    3,691 1.55%
  Tax-exempt    34,985    175 1.99%   37,893    189 1.98%   39,193    187 1.92%   40,658    191 1.89%   43,144    195 1.79%    38,173    742 1.94%   37,871    546 1.93%
  Total investment securities - available for sale     379,916    1,673 1.75%   367,186    1,612 1.75%   365,086    1,620 1.78%   357,011    1,588 1.79%   350,668    1,627 1.84%    367,334    6,526 1.78%   356,381    4,237 1.59%
                        
Investment securities  - held to maturity    2,889    7 0.96%   2,907    6 0.82%   2,427    4 0.66%   -    -     -    - 0.00%    2,060    4 0.19%   -    -  
Investment securities  - trading    3,853    16 1.65%   3,523    2 0.23%   3,640    2 0.22%   3,946    2 0.20%   3,571    60 6.67%    3,740    2 0.05%   3,985    21 0.70%
                        
Loans and leases *    2,517,967    28,354 4.48%   2,476,972    28,032 4.50%   2,412,643    27,761 4.63%   2,308,584    26,778 4.67%   2,247,720    26,158 4.62%    2,429,416    110,925 4.57%   2,131,278    76,548 4.80%
                        
  Total interest-earning assets     2,959,923    30,103 4.05%   2,884,120    29,679 4.09%   2,828,746    29,429 4.18%   2,708,591    28,414 4.22%   2,692,791    27,908 4.11%    2,845,764    117,625 4.13%   2,676,333    81,152 4.05%
                        
Cash and due from banks    16,127      16,228      16,413      16,501      18,005       16,317      17,484   
Less: allowance for loan and lease losses    (17,858)     (17,257)     (17,271)     (16,239)     (16,106)      (17,159)     (14,760)  
Other assets     257,676      258,928      262,065      264,295      264,321       260,728      257,896   
                        
  Total assets $  3,215,868   $  3,142,019   $  3,089,953   $  2,973,148   $  2,959,011    $  3,105,650   $  2,936,953   
                        
Liabilities:                       
                        
Interest-bearing deposits:                       
  Savings, NOW and market rate deposits $  1,328,577 $  686 0.21%$  1,286,404 $  641 0.20%$  1,273,964 $  589 0.19%$  1,279,630 $  569 0.18%$  1,260,575 $  565 0.18% $  1,292,228 $  2,485 0.19%$  1,245,857 $  1,753 0.19%
  Wholesale deposits    156,541    319 0.81%   164,706    327 0.79%   196,517    361 0.74%   137,201    233 0.68%   119,394    186 0.62%    163,724    1,240 0.76%   134,607    586 0.58%
  Retail time deposits     324,158    775 0.95%   278,579    607 0.87%   246,771    452 0.74%   216,820    274 0.51%   231,605    295 0.51%    266,772    2,108 0.79%   264,168    827 0.42%
  Total interest-bearing deposits    1,809,276    1,780 0.39%   1,729,689    1,575 0.36%   1,717,252    1,402 0.33%   1,633,651    1,076 0.26%   1,611,574    1,046 0.26%    1,722,724    5,833 0.34%   1,644,632    3,166 0.26%
                        
Borrowings:                       
Short-term borrowings    40,629    22 0.22%   40,966    34 0.33%   32,328    20 0.25%   34,158    17 0.20%   26,092    9 0.14%    37,041    93 0.25%   39,352    39 0.13%
Long-term FHLB advances and other borrowings    198,454    760 1.52%   218,920    818 1.49%   236,248    867 1.48%   250,015    908 1.46%   254,880    912 1.42%    225,815    3,353 1.48%   254,810    2,642 1.39%
Subordinated notes    29,523    370 4.99%   29,509    370 4.99%   29,496    370 5.05%   29,482    366 4.99%   29,471    370 4.98%    29,503    1,476 5.00%   6,130    231 5.04%
  Total borrowings    268,606    1,152 1.71%   289,395    1,222 1.68%   298,072    1,257 1.70%   313,655    1,291 1.66%   310,443    1,291 1.65%    292,359    4,922 1.68%   300,292    2,912 1.30%
                        
  Total interest-bearing liabilities    2,077,882    2,932 0.56%   2,019,084    2,797 0.55%   2,015,324    2,659 0.53%   1,947,306    2,367 0.49%   1,922,017    2,337 0.48%    2,015,083    10,755 0.53%   1,944,924    6,078 0.42%
                        
Noninterest-bearing deposits    724,465      716,581      675,710      631,047      634,969       687,134      580,356   
Other liabilities    35,478      33,400      32,804      33,923      36,665       33,904      35,978   
  Total noninterest-bearing liabilities    759,944      749,981      708,514      664,970      671,634       721,038      616,334   
                        
  Total liabilities    2,837,826      2,769,065      2,723,838      2,612,276      2,593,651       2,736,121      2,561,258   
                        
Shareholders' equity     378,043      372,954      366,115      360,872      365,360       369,529      375,695   
                        
  Total liabilities and shareholders' equity  $  3,215,868   $  3,142,019   $  3,089,953   $  2,973,148   $  2,959,011    $  3,105,650   $  2,936,953   
                        
Interest income to earning assets   4.05%  4.09%  4.18%  4.22%  4.11%   4.13%  4.05%
                        
Net interest spread   3.49%  3.54%  3.65%  3.73%  3.63%   3.60%  3.63%
Effect of noninterest-bearing sources     0.16%    0.17%    0.16%    0.14%    0.14%   0.16%    0.12%
                        
Tax-equivalent net interest margin   $  27,171 3.65% $  26,882 3.71% $  26,770 3.81% $  26,047 3.87% $  25,571 3.77%  $  106,870 3.76% $  75,074 3.75%
                        
Tax-equivalent adjustment   $  181 0.02% $  165 0.02% $  143 0.02% $  145 0.02% $  142 0.02%  $  634 0.02% $  376 0.02%
                        
Supplemental Information Regarding Accretion of Fair Value Marks                     
    Interest Income (Expense) Effect Effect on Yield or Rate  Interest Income (Expense) Effect Effect on Yield or Rate  Interest Income (Expense) Effect Effect on Yield or Rate  Interest Income (Expense) Effect Effect on Yield or Rate  Interest Income (Expense) Effect Effect on Yield or Rate   Interest Income (Expense) Effect Effect on Yield or Rate  Interest Income (Expense) Effect Effect on Yield or Rate
Loans and leases  $  742 0.12% $  578 0.09% $  1,076 0.18% $  953 0.17% $  707 0.12%  $  3,349 0.14% $  3,136 0.15%
Retail time deposits     (19)-0.02%    (29)-0.04%    (61)-0.10%    (110)-0.20%    (123)-0.21%     (219)-0.08%    (638)-0.24%
Short-term borrowings     - 0.00%    - 0.00%    - 0.00%    (12)-0.14%    (35)-0.53%     (12)-0.03%    (104)-0.26%
Long-term FHLB advances and other borrowings     (30)-0.06%    (30)-0.05%    (30)-0.05%    (30)-0.05%    (30)-0.05%     (120)-0.05%    (96)-0.04%
Net interest income from fair value marks  $  791   $  637   $  1,167   $  1,105   $  895    $  3,700   $  3,974  
Purchase accounting effect on tax-equivalent margin  0.11%  0.09%  0.17%  0.16%  0.13%   0.13%  0.15%
* Average loans and leases include portfolio loans and leases, and loans held for sale. Non-accrual loans are also included in the average loan and leases balances.             
                        

  

 

Bryn Mawr Bank Corporation             
Appendix - Non-GAAP to GAAP Reconciliations and Calculation of Non-GAAP Performance Measures (unaudited)
 
(dollars in thousands, except per share data) 
              
Statement on Non-GAAP Measures: The Corporation believes the presentation of the following non-GAAP financial measures provides useful supplemental information that is essential to an investor's proper understanding of the results of operations and financial condition of the Corporation. Management uses non-GAAP financial measures in its analysis of the Corporation's performance. These non-GAAP measures should not be viewed as substitutes for the financial measures determined in accordance with GAAP, nor are they necessarily comparable to  non-GAAP performance measures that may be presented by other companies.    
              
 As of or For the Three Months Ended As of or For the Twelve Months Ended 
 December 31, 2016 September 30, 2016 June 30, 2016 March 31, 2016 December 31, 2015 December 31, 2016December 31, 2015 
Reconciliation of Net Income to Net Income (core):             
Net income (loss) (a GAAP measure)$9,408  $9,374  $8,933  $8,321  $(6,355) $36,036  $16,754  
Less: Tax-effected non-core noninterest income:             
Loss (gain) on sale of investment securities available for sale (6)  18   28   10   (38)  50   (605) 
Add: Tax-effected non-core noninterest expense items:             
Loss on pension termination -   -   -   -   11,295   -   11,295  
Severance expense (Salaries and wages) -   -   -   -   142   -   265  
Branch lease termination expense -   -   -   -   604   -   604  
Debt and swap prepayment penalty (Other operating expenses) -   -   -   -   397   -   735  
Impairment of intangible assets -   -   -   -   252   -   252  
Due diligence, merger-related and merger integration  expenses   -     -     -     -     1,209     -     4,336  
Net income (core) (a non-GAAP measure)$   9,402   $   9,392   $   8,961   $   8,331   $   7,506   $   36,086   $   33,636   
                
Calculation of Basic and Diluted Earnings per Common Share (core):            
Weighted average common shares outstanding 16,916,705   16,860,727   16,812,219   16,848,202   17,129,234   16,859,623   17,488,328  
Dilutive common shares   247,970     211,631     215,200     35,162     112,783     177,491     268,246  
Adjusted weighted average diluted shares 17,164,675   17,072,358   17,027,419   16,883,364   17,242,017   17,037,114   17,756,574  
Basic earnings per common share (core) (a non-GAAP measure)$0.56  $0.56  $0.53  $0.49  $0.44  $2.14  $1.92  
Diluted earnings per common share (core) (a non-GAAP measure)$0.55  $0.55  $0.53  $0.49  $0.44  $2.12  $1.89  
              
Calculation of Return on Average Tangible Equity:             
Net income (loss)$9,408  $9,374  $8,933  $8,321  $(6,355) $36,036  $16,754  
Add: Tax-effected amortization and impairment of intangible assets   540     577     578     579     861     2,274     2,739  
Net tangible income (numerator)$9,948  $9,951  $9,511  $8,900  $(5,494) $38,310  $19,493  
              
Average shareholders' equity$378,043  $372,954  $366,115  $360,872  $365,360  $369,529  $373,088  
Less: Average goodwill and intangible assets   (125,614)    (126,505)    (127,402)    (128,296)    (129,292)    (126,950)    (128,181) 
Net average tangible equity (denominator)$252,429  $246,449  $238,713  $232,576  $236,068  $242,579  $244,907  
              
Return on tangible equity (a non-GAAP measure) 15.68%  16.06%  16.02%  15.39%  -9.23%  15.79%  7.96% 
              
Calculation of Tangible Equity Ratio:             
Total shareholders' equity$381,127  $378,459  $372,467  $365,177  $365,711     
Less: Goodwill and intangible assets   (125,170)    (126,000)    (126,888)    (127,777)    (128,668)    
Net tangible equity (numerator)$255,957  $252,459  $245,579  $237,400  $237,043     
              
Total assets$3,421,530  $3,174,080  $3,090,090  $3,058,247  $3,030,997     
Less: Goodwill and intangible assets   (125,170)    (126,000)    (126,888)    (127,777)    (128,668)    
Tangible assets (denominator)$3,296,360  $3,048,080  $2,963,202  $2,930,470  $2,902,329     
              
Tangible equity ratio 7.76%  8.28%  8.29%  8.10%  8.17%    
              
              
              
              
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.    
              
Calculation of Efficiency Ratio:             
Noninterest expense$24,958  $25,477  $26,259  $25,051  $46,951  $101,745  $125,765  
Less: certain noninterest expense items*:             
Loss on pension termination -   -   -   -   (17,377)  -   (17,377) 
Severance expense (Salaries and wages) -   -   -   -   (218)  -   (408) 
Branch lease termination expense -   -   -   -   (929)  -   (929) 
Debt and swap prepayment penalty (Other operating expenses) -   -   -   -   (611)  -   (1,131) 
Amortization of intangibles (830)  (888)  (889)  (891)  (937)  (3,498)  (3,827) 
Impairment of intangible assets -   -   -   -   (388)  -   (388) 
Due diligence, merger-related and merger integration  expenses   -     -     -     -     (1,860)    -     (6,670) 
Noninterest expense (adjusted) (numerator)$24,128  $24,589  $25,370  $24,160  $24,631  $98,247  $95,035  
              
Noninterest income$13,119  $13,892  $13,820  $13,208  $13,668  $54,039  $55,960  
Less: non-core noninterest income items:             
Loss (gain) on sale of investment securities available for sale   (9)    28     43     15     (58)    77     (931) 
Noninterest income (core)$13,110  $13,920  $13,863  $13,223  $13,610  $54,116  $55,029  
Net interest income   26,990     26,717     26,627     25,902     25,429     106,236     100,127  
Noninterest income (core) and net interest income (denominator)$40,100  $40,637  $40,490  $39,125  $39,039  $160,352  $155,156  
              
Efficiency ratio 60.17%  60.51%  62.66%  61.75%  63.09%  61.27%  61.25% 
* In calculating the Corporation's efficiency ratio, which is used by Management to identify the cost of generating each dollar of core revenue, certain non-core income and expense items as well as the amortization of intangible assets, are excluded.    
              
Supplemental Loan and Allowance Information Used to Calculate Non-GAAP Measures