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Bryn Mawr Bank Corporation Reports Record Quarterly Net Income of $10.7 Million, Driven by Strong Net Interest Income, Noninterest Income and Expense Control, Declares Dividend of $0.22

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BRYN MAWR, Pa., Oct. 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 $10.7 million and diluted earnings per share of $0.62 for the three months ended September 30, 2017, as compared to net income of $9.4 million, or $0.55 diluted earnings per share, for the three months ended June 30, 2017, and $9.4 million, or $0.55 diluted earnings per share, for the three months ended September 30, 2016. Included in net income for the three months ended September 30, 2017 and June 30, 2017 were pre-tax due diligence and merger-related expenses of $850 thousand and $1.2 million, respectively, primarily related to the pending merger with Royal Bancshares of Pennsylvania, Inc. ("Royal Bank").

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 $11.2 million, or $0.65 diluted earnings per share, for the three months ended September 30, 2017 as compared to $10.2 million, or $0.59 diluted earnings per share, for the three months ended June 30, 2017 and $9.4 million, or $0.55 diluted earnings per share, for the three months ended September 30, 2016. 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.

"The Corporation continued to produce solid results in the quarter, benefiting from our focus on new business development and the strategic investments we have made over the last few years in both revenue generation as well as enabling technologies," commented Frank Leto, President and Chief Executive Officer, adding, "As a result, we saw growth in both net interest income as well as fee income during the quarter with very little increase in expenses, net of merger costs, driving our return on average equity over one percent higher in the quarter, when compared to last quarter."

Mr. Leto continued, "The preparations for the merger with Royal Bank continue as we await final regulatory approval. Staff and management have been working diligently to ensure a smooth transition and we expect the transaction to close during the fourth quarter of 2017". In addition to regulatory approval, the merger with Royal Bank is subject to certain closing conditions.

On October 19, 2017, the Board of Directors of the Corporation declared a quarterly dividend of $0.22 per share, payable December 1, 2017 to shareholders of record as of November 1, 2017.

SIGNIFICANT ITEMS OF NOTE
Results of Operations – Third Quarter 2017 Compared to Second Quarter 2017

  • Net income for the three months ended September 30, 2017 was $10.7 million, or $0.62 diluted earnings per share, as compared to $9.4 million, or $0.55 diluted earnings per share for the three months ended June 30, 2017. Contributing to the increase was a $1.5 million increase in net interest income, a $430 thousand increase in insurance revenues and a $279 thousand increase in gain on sale of loans. In addition to these improving revenue items, linked-quarter decreases of $386 thousand and $310 thousand in due diligence and merger-related expenses and professional fees, respectively, contributed to the improvement in net income. The decrease in the effective tax rate from 34.2% for the second quarter of 2017 to 30.7% for the third quarter of 2017 was the result of a $581 thousand increase in excess tax benefit primarily related to the vesting of restricted stock awards during the third quarter of 2017. Partially offsetting these positive changes to net income was a $1.4 million increase in the provision for loan and lease losses (the "Provision") from the second quarter to the third quarter of 2017.
     
  • Tax-equivalent net interest income for the three months ended September 30, 2017 was $29.6 million, an increase of $1.5 million, or 5.2%, from $28.1 million for the three months ended June 30, 2017.  The accretion of purchase accounting adjustments increased the tax-equivalent net interest income recorded for the third quarter of 2017 by $753 thousand, as compared to an increase of $450 thousand for the three months ended June 30, 2017. 
     
    Average loans and leases for the three months ended September 30, 2017 increased by $64.7 million from the three months ended June 30, 2017 and experienced an eleven basis point increase in tax-equivalent yield. The increase in the prime rate, which occurred toward the end of the second quarter, contributed to the increase in tax-equivalent yield on loans, as did the accretion of purchase accounting adjustments, which totaled $708 thousand for the third quarter of 2017 as compared to $402 thousand for the second quarter of 2017. Excluding the effect of the accretion of purchase accounting adjustments on loans and leases, the tax-equivalent yield on loans and leases increased by seven basis points on a linked-quarter basis. The net effect of the yield and volume increases on average loans and leases was a $1.7 million increase in tax-equivalent interest income on loans and leases from the second quarter of 2017 to the third quarter of 2017.

    Average available for sale investment securities increased by $32.3 million for the three months ended September 30, 2017 as compared to the three months ended June 30, 2017, and experienced a one basis point tax-equivalent yield increase. The increase in volume and yield on available for sale investment securities resulted in a $204 thousand increase in tax-equivalent interest income for the third quarter of 2017 as compared to the second quarter of 2017.

    Partially offsetting the increase in average loans and leases and available for sale investment securities was a $17.8 million increase in average interest-bearing deposits accompanied by a four basis point increase in rate paid on deposits resulting in a $215 thousand increase in interest expense on deposits for the third quarter of 2017 as compared to the second quarter of 2017. In addition to the increase in average deposits, average borrowings increased $68.3 million for the three months ended September 30, 2017 as compared to the three months ended June 30, 2017, with the rate paid decreasing by four basis points. The volume increase and rate decrease resulted in a $273 thousand increase in interest expense on borrowings on a linked-quarter basis.
  • The tax-equivalent net interest margin of 3.71% for the third quarter of 2017 increased three basis points from 3.68% for the second quarter of 2017.  During the third quarter of 2017, the accretion of purchase accounting adjustments contributed nine basis points to the tax-equivalent net interest margin as compared to a contribution of six basis points for the three months ended June 30, 2017.  As a result, excluding the effect of the accretion of purchase accounting adjustments, the tax-equivalent net interest margin remained unchanged on a linked-quarter basis.
     
  • Noninterest income for the three months ended September 30, 2017 increased by $799 thousand from the second quarter of 2017. Largely contributing to this increase was an increase of $430 thousand in insurance revenues, as the impact of the May 24, 2017 acquisition of Hirshorn Boothby was experienced for a full quarter, and a $279 thousand increase in gain on sale of loans, primarily related to the sale of SBA-guaranteed loans. Partially offsetting these increases were decreases of $156 thousand in fees for wealth management services, as some of the fees for tax-related services during the second quarter of 2017 were not repeated in the third quarter, and a $110 thousand linked-quarter decrease in capital markets revenue.
     
  • Noninterest expense for the three months ended September 30, 2017 decreased $311 thousand, to $28.2 million, as compared to $28.5 million for the second quarter of 2017. The $310 thousand decrease in professional fees was partially related to second quarter 2017 initial start-up costs associated with BMT Investment Advisers, a subsidiary established to advise the Corporation's new proprietary mutual fund, the BMT Multi-Cap Fund (MUTF:BMTMX). In addition, due diligence and merger-related expenses decreased by $386 thousand between the periods. These decreases were partially offset by increases of $238 thousand and $211 thousand in occupancy and bank premises expense and other operating expenses, respectively.
     
  • For the three months ended September 30, 2017, net loan and lease charge-offs totaled $728 thousand, as compared to $625 thousand for the second quarter of 2017. The Provision for the three months ended September 30, 2017 was $1.3 million, a $1.4 million increase from the $83 thousand release from the allowance for loan and lease losses (the "Allowance") for the second quarter of 2017. The increase in the Provision was driven by loan growth as well as changes to certain qualitative factors used to estimate the incurred loan and lease losses in the loan portfolio as of September 30, 2017.
     
  • Income tax expense for the third quarter of 2017 decreased by $139 thousand as compared to the second quarter of 2017. The 347 basis point decrease in the effective tax rate from the second quarter of 2017 to the third quarter of 2017 was primarily the result of recognizing excess tax benefits associated with the vesting of restricted stock awards and the exercise of stock options. Excess tax benefits totaled $694 thousand for the third quarter of 2017 as compared to $113 thousand for the second quarter of 2017.

Results of Operations – Third Quarter 2017 Compared to Third Quarter 2016

  • Net income for the three months ended September 30, 2017 was $10.7 million, or $0.62 diluted earnings per share, as compared to $9.4 million, or diluted earnings per share of $0.55, for the same period in 2016. Contributing to the increase in net income was an increase of $2.7 million in net interest income and a $1.8 million increase in noninterest income, with wealth management, insurance and capital markets performance contributing to the increase. Partially offsetting these increases was a $2.8 million increase in noninterest expense, with increases in salaries and wages and due diligence and merger-related expenses being offset by decreases in Pennsylvania bank shares tax, amortization of intangible assets and professional fees.
     
  • Tax-equivalent net interest income for the three months ended September 30, 2017 was $29.6 million, an increase of $2.7 million, or 10.3%, from $26.9 million for the same period in 2016.  The accretion of purchase accounting adjustments increased the tax-equivalent net interest income recorded for the third quarter of 2017 by $753 thousand, as compared to an increase of $637 thousand for the same period in 2016.         

    Average loans and leases for the three months ended September 30, 2017 increased by $203.3 million from the same period in 2016 and experienced a ten basis point increase in tax-equivalent yield. The increase in the prime rate, which occurred toward the end of the second quarter, contributed to the increase in tax-equivalent yield on loans, as did the accretion of purchase accounting adjustments, which totaled $708 thousand for the third quarter of 2017 as compared to $578 thousand for the same period in 2017. Excluding the effect of the accretion of purchase accounting adjustments on loans and leases, the tax-equivalent yield on loans and leases increased by nine basis points. The net effect of the yield and volume increases on average loans and leases was a $3.0 million increase in tax-equivalent interest income on loans.

    Average available for sale investment securities increased by $85.2 million for the three months ended September 30, 2017 as compared to the same period in 2016, and experienced a 26 basis point tax-equivalent yield increase. The increase in volume and yield on available for sale investment securities resulted in a $682 thousand increase in tax-equivalent interest income for the third quarter of 2017 as compared to the same period in 2016.

    Partially offsetting the increase in average loans and leases and available for sale investment securities was a $141.8 million increase in average interest-bearing deposits accompanied by an eleven basis point increase in rate paid on deposits resulting in a $623 thousand increase in interest expense on deposits for the third quarter of 2017 as compared to the same period in 2016. In addition to the increase in average deposits, average borrowings increased $78.9 million for the three months ended September 30, 2017 as compared to the same period in 2016 with the rate paid remaining unchanged, which resulted in a $340 thousand increase in interest expense on borrowings.

  • The tax-equivalent net interest margin of 3.71% for the three months ended September 30, 2017 remained unchanged from the same period in 2016. The contribution to the tax-equivalent margin from the accretion of purchase accounting adjustments for both periods also remained unchanged at nine basis points.
     
  • Noninterest income for the three months ended September 30, 2017 increased by $1.8 million from the same period in 2016. An increase of $551 thousand in fees for wealth management services resulted as wealth assets under management, administration, supervision and brokerage increased $2.46 billion from September 30, 2016 to September 30, 2017. Insurance revenue increased $487 thousand for the third quarter of 2017 as compared to the same period in 2016, largely due to the May 2017 acquisition of Hirshorn Boothby. In addition, revenue from our Capital Markets initiative, which was launched in the second quarter of 2017, contributed $843 thousand to noninterest income.
     
  • Noninterest expense for the three months ended September 30, 2017 increased $2.8 million from the same period in 2016. The increase was largely related to a $2.0 million increase in salary and wages due to staffing increases from our Capital Markets initiative, the Hirshorn Boothby acquisition and the Princeton wealth management office, annual salary and wage increases and increases in incentive compensation. In addition, an $850 thousand increase in due diligence, merger-related and merger integration costs primarily related to the Royal Bank merger, and a $597 thousand increase in other operating expenses, which included a $368 thousand increase in contributions, largely comprised of contributions to local schools under the Pennsylvania Educational Improvement Tax Credit (EITC) program, contributed to the increase. Contributions made through the EITC program result in tax credits towards the Bank's Pennsylvania bank shares tax obligation.
     
  • For the three months ended September 30, 2017, a Provision of $1.3 million was recorded as compared to $1.4 million for the same period in 2016. Net charge-offs for the third quarter of 2017 were $728 thousand as compared to $704 thousand for the same period in 2016.

Financial Condition – September 30, 2017 Compared to December 31, 2016

  • Total portfolio loans and leases of $2.68 billion as of September 30, 2017, increased by $141.9 million from December 31, 2016. Loan growth was concentrated in the commercial mortgage and commercial and industrial segments of the portfolio, which increased by $113.7 million, or 10.2%, and $17.8 million, or 3.1%, respectively.
     
  • The Allowance as of September 30, 2017 was $17.0 million, or 0.64% of portfolio loans as compared to $17.5 million, or 0.69% of portfolio loans and leases as of December 31, 2016. 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 0.70% as of September 30, 2017, as compared to 0.78% as of December 31, 2016, and the Allowance plus the remaining loan mark as a percentage of gross loans, which was 1.01% as of September 30, 2017, as compared to 1.17% as of December 31, 2016. A reconciliation of these and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release. The change in the Allowance ratios was the result of the growth of the loan portfolio and improvements in certain qualitative factors and economic indicators, along with decreases in certain historic charge-off rates over the lookback period.
     
  • Available for sale investment securities as of September 30, 2017 totaled $471.7 million, a decrease of $95.3 million from December 31, 2016. The decrease in available for sale investment securities was primarily the result of the maturing, in January 2017, of $200 million of short-term U.S. Treasury bills. Partially offsetting the effect of this decrease in U.S. Treasury bills were increases of $104.7 million in available for sale investment securities since December 31, 2016, primarily in U.S. government and agency bonds and mortgage-backed securities. A portion of this increase is related to the strategic repositioning of the investment portfolio in anticipation of the Royal Bank merger.
     
  • Total assets as of September 30, 2017 were $3.48 billion, an increase of $55.3 million from December 31, 2016. Increases in portfolio loans and leases were largely offset by a decrease in available for sale investment securities discussed in the previous bullet point.
     
  • Wealth assets under management, administration, supervision and brokerage totaled $12.43 billion as of September 30, 2017, an increase of $1.10 billion from December 31, 2016. The increase in wealth assets was comprised of a $456.9 million increase in account balances whose fees are based on market value, and a $646.0 million increase in fixed rate flat-fee account types.
     
  • Deposits of $2.68 billion as of September 30, 2017 increased $104.5 million from December 31, 2016. Over 76% of this increase was in interest-bearing deposits, which grew by $80.1 million.
     
  • Borrowings of $315.5 million as of September 30, 2017 decreased $78.4 million from December 31, 2016. The decrease was comprised of a $23.3 million decrease in short-term borrowings and a $55.1 million decrease in long-term FHLB advances. In January 2017, $200.0 million of short-term borrowings associated with the maturing of $200.0 million of short-term U.S. Treasury bills were repaid.  The net increase in short-term borrowings of $176.7 million was utilized to support loan growth, purchases of available for sale investment securities and to replace $55.1 million of long-term FHLB advances which matured during the first nine months of 2017.

  • The capital ratios for the Bank and the Corporation, as of September 30, 2017, as shown in the attached tables, indicate levels above the regulatory minimum to be considered "well capitalized."

FORWARD LOOKING STATEMENTS AND SAFE HARBOR
This press release contains statements which, to the extent that they are not recitations of historical fact may constitute forward-looking statements for purposes of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. Such forward-looking statements may include financial and other projections as well as statements regarding the Corporation's future plans, objectives, performance, revenues, growth, profits, operating expenses or the Corporation's underlying assumptions. The words "may," "would," "should," "could," "will," "likely," "possibly," "expect," "anticipate," "intend," "indicate," "estimate," "target," "potentially," "promising," "probably," "outlook," "predict," "contemplate," "continue," "plan," "forecast," "project," "are optimistic," "are looking," "are looking forward" and "believe" or other similar words and phrases may identify forward-looking statements. Persons reading this press release are cautioned that such statements are only predictions, and that the Corporation's actual future results or performance may be materially different.

Such forward-looking statements involve known and unknown risks and uncertainties.   A number of factors, many of which are beyond the Corporation's control, could cause our actual results, events or developments, or industry results, to be materially different from any future results, events or developments expressed, implied or anticipated by such forward-looking statements, and so our business and financial condition and results of operations could be materially and adversely affected. Such factors include, among others, our inability to obtain applicable regulatory approvals with respect to, or our inability to complete, the contemplated Royal Bank acquisition, that the integration of acquired businesses with the Corporation 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.

FOR MORE INFORMATION CONTACT:    

Frank Leto, President, CEO                               
610-581-4730
Mike Harrington, CFO
610-526-2466

Bryn Mawr Bank Corporation                            
Summary Financial Information (unaudited)                            
(dollars in thousands, except per share data)                            
  As of or For the Three Months Ended   For the Nine Months Ended  
  September 30, 2017   June 30, 2017   March 31, 2017   December 31, 2016   September 30, 2016   September 30, 2017   September 30, 2016  
Consolidated Balance Sheet (selected items)                            
Interest-bearing deposits with banks $   36,870     $   30,806     $   69,978     $   34,206     $   30,118            
Investment securities (AFS, HTM and Trading)     482,399         452,869         400,360         573,763         373,508            
Loans held for sale     6,327         8,590         3,015         9,621         11,506            
Portfolio loans and leases     2,677,345         2,666,651         2,555,589         2,535,425         2,493,357            
Allowance for loan and lease losses ("ALLL")     (17,004 )       (16,399 )       (17,107 )       (17,486 )       (17,744 )          
Goodwill and other intangible assets     128,534         129,211         124,629         125,170         126,000            
Total assets     3,476,821         3,438,219         3,292,617         3,421,530         3,174,080            
Deposits - interest-bearing     1,923,567         1,863,288         1,865,009         1,843,495         1,759,862            
Deposits - non-interest-bearing     760,614         818,475         771,556         736,180         718,015            
Short-term borrowings     180,874         130,295         23,613         204,151         50,065            
Long-term FHLB advances and other borrowings     134,651         164,681         174,711         189,742         204,772            
Subordinated notes     29,573         29,559         29,546         29,532         29,518            
Total liabilities     3,074,929         3,043,242         2,904,522         3,040,403         2,795,621            
Shareholders' equity     401,892         394,977         388,095         381,127         378,459            
                             
Average Balance Sheet (selected items)                            
Interest-bearing deposits with banks $   26,628     $   26,266     $   39,669     $   55,298     $   33,532     $   30,807     $   39,157    
Investment securities (AFS, HTM and Trading)     462,700         429,400         393,306         386,658         373,616         428,723         368,594    
Loans held for sale     3,728         3,855         4,238         11,591         12,887         3,938         8,752    
Portfolio loans and leases     2,676,589         2,611,755         2,551,439         2,506,376         2,464,085         2,613,720         2,390,931    
Total interest-earning assets     3,169,645         3,071,276         2,988,652         2,959,923         2,884,120         3,077,188         2,807,434    
Goodwill and intangible assets     128,917         126,537         124,884         125,614         126,505         126,794         127,398    
Total assets     3,441,906         3,333,307         3,244,060         3,215,868         3,142,019         3,340,484         3,068,642    
Deposits - interest-bearing     1,871,494         1,853,660         1,852,194         1,809,276         1,729,689         1,859,188         1,693,663    
Short-term borrowings     182,845         98,869         47,603         40,629         40,966         110,268         35,836    
Long-term FHLB advances     155,918         171,567         182,507         198,454         218,920         169,900         235,002    
Subordinated notes     29,564         29,550         29,537         29,523         29,509         29,550         29,496    
Total interest-bearing liabilities     2,239,821         2,153,646         2,111,841         2,077,882         2,019,084         2,168,906         1,993,997    
Total liabilities     3,044,549         2,943,591         2,861,846         2,837,825         2,769,065         2,950,666         2,701,973    
Shareholders' equity     397,357         389,716         382,214         378,043         372,954         389,818         366,669    
                             
Income Statement                            
Net interest income $   29,438     $   27,965     $   27,403     $   26,990     $   26,717     $   84,806     $   79,246    
Provision for loan and lease losses     1,333         (83 )       291         1,059         1,412         1,541         3,267    
Noninterest income     15,584         14,785         13,227         13,248         13,786         43,596         40,920    
Noninterest expense     28,184         28,495         26,660         25,087         25,371         83,339         76,787    
Income tax expense     4,766         4,905         4,635         4,684         4,346         14,306         13,484    
Net income     10,739         9,433         9,044         9,408         9,374         29,216         26,628    
Basic earnings per share     0.63         0.56         0.53         0.56         0.56         1.72         1.58    
Diluted earnings per share     0.62         0.55         0.53         0.55         0.55         1.70         1.57    
Net income (core) (1)     11,245         10,236         9,375         9,402         9,392         30,857         26,684    
Basic earnings per share (core) (1)     0.66         0.60         0.55         0.56         0.56         1.82         1.58    
Diluted earnings per share (core) (1)     0.65         0.59         0.55         0.55         0.55         1.79         1.57    
Cash dividends paid per share     0.22         0.21         0.21         0.21         0.21         0.64         0.61    
Profitability Indicators                            
Return on average assets   1.24 %     1.14 %     1.13 %     1.16 %     1.19 %     1.17 %     1.16 %  
Return on average equity   10.72 %     9.71 %     9.60 %     9.90 %     10.00 %     10.02 %     9.70 %  
Return on tangible equity(1)   16.52 %     15.06 %     14.96 %     15.68 %     16.06 %     23.42 %     15.83 %  
Tax-equivalent net interest margin   3.71 %     3.68 %     3.74 %     3.65 %     3.71 %     3.71 %     3.79 %  
Efficiency ratio(1)   59.30 %     62.16 %     62.66 %     60.30 %     60.41 %     61.32 %     61.64 %  
Mortgage Banking Information                            
Mortgage loans originated $   48,159     $   46,848     $   48,550     $   78,749     $   84,885     $   143,557     $   201,310    
Residential mortgage loans sold - servicing retained     28,224         21,790         27,690         44,763         40,462         77,704         93,371    
Residential mortgage loans sold - servicing released     4,982         3,819         4,981         4,632         10,522         13,782         18,197    
  Total residential mortgage loans sold $   33,206     $   25,609     $   32,671     $   49,395     $   50,984     $   91,486     $   111,568    
Residential mortgage loans serviced for others $   647,037     $   641,165     $   638,553     $   631,889     $   618,134            
Share Data                            
Closing share price $   43.80     $   42.50     $   39.50     $   42.15     $   31.99            
Book value per common share $   23.57     $   23.25     $   22.87     $   22.50     $   22.40            
Tangible book value per common share $   16.03     $   15.64     $   15.53     $   15.11     $   14.94            
Price / book value   185.82 %     182.81 %     172.71 %     187.34 %     142.80 %          
Price / tangible book value   273.19 %     271.69 %     254.41 %     278.96 %     214.07 %          
Weighted average diluted shares outstanding     17,233,548         17,232,767         17,182,689         17,164,675         17,072,358         17,222,051         16,994,455    
Shares outstanding, end of period   17,050,151       16,989,849       16,969,451       16,939,715       16,893,878            
Wealth Management Information:                            
                             
                             
Wealth assets under mgmt, administration, supervision and brokerage (2) $   12,431,370     $   12,050,555     $   11,725,460     $   11,328,457     $   9,969,745            
Fees for wealth management services $   9,651     $   9,807     $   9,303     $   9,327     $   9,100            
                                                 
Capital Ratios                            
Bryn Mawr Trust Company                            
Tier I capital to risk weighted assets ("RWA")   10.78 %     10.29 %     10.58 %     10.50 %     10.99 %          
Total (Tier II) capital to RWA   11.42 %     10.90 %     11.25 %     11.19 %     11.70 %          
Tier I leverage ratio   8.75 %     8.76 %     8.83 %     8.73 %     9.17 %          
Tangible equity ratio (1)   8.46 %     8.24 %     8.46 %     7.85 %     8.85 %          
Common equity Tier I capital to RWA   10.78 %     10.29 %     10.58 %     10.50 %     10.99 %          
                             
Bryn Mawr Bank Corporation                            
Tier I capital to RWA   10.50 %     10.10 %     10.50 %     10.51 %     10.42 %          
Total (Tier II) capital to RWA   12.23 %     11.79 %     12.30 %     12.35 %     12.30 %          
Tier I leverage ratio   8.53 %     8.63 %     8.77 %     8.73 %     8.70 %          
Tangible equity ratio (1)   8.16 %     8.03 %     8.32 %     7.76 %     8.28 %          
Common equity Tier I capital to RWA   10.50 %     10.10 %     10.50 %     10.51 %     10.42 %          
                             
Asset Quality Indicators                            
                             
Net loan and lease charge-offs ("NCO"s) $   728     $   625     $   670     $   1,317     $   704     $   2,023     $   1,380    
                                                         
Nonperforming loans and leases ("NPL"s) $   4,472     $   7,237     $   7,329     $   8,363     $   9,883            
Other real estate owned ("OREO")     865         1,122         978         1,017         867            
Total nonperforming assets ("NPA"s) $    5,337     $    8,359     $    8,307     $    9,380     $    10,750            
                             
Nonperforming loans and leases 30 or more days past due $   2,337     $   4,076     $   5,097     $   6,072     $   6,684            
Performing loans and leases 30 to 89 days past due     4,558         6,258         6,077         3,062         2,537            
Performing loans and leases 90 or more days past due     -         -         -         -         -            
Total delinquent loans and leases $    6,895     $    10,334     $    11,174     $    9,134     $    9,221            
                             
Delinquent loans and leases to total loans and leases   0.26 %     0.39 %     0.44 %     0.36 %     0.37 %          
Delinquent performing loans and leases to total loans and leases   0.17 %     0.23 %     0.24 %     0.12 %     0.10 %          
NCOs / average loans and leases (annualized)   0.11 %     0.10 %     0.11 %     0.21 %     0.11 %     0.10 %     0.08 %  
NPLs / total portfolio loans and leases   0.17 %     0.27 %     0.29 %     0.33 %     0.40 %          
NPAs / total loans and leases and OREO   0.20 %     0.31 %     0.32 %     0.37 %     0.43 %          
NPAs / total assets   0.15 %     0.24 %     0.25 %     0.27 %     0.34 %          
ALLL / NPLs   380.23 %     226.60 %     233.42 %     209.09 %     179.54 %          
ALLL / portfolio loans   0.64 %     0.61 %     0.67 %     0.69 %     0.71 %          
ALLL on originated loans and leases / Originated loans and leases (1)   0.70 %     0.68 %     0.75 %     0.78 %     0.81 %          
(Total Allowance + Loan mark) / Total Gross portfolio loans and leases (1)   1.01 %     1.03 %     1.12 %     1.17 %     1.24 %          
                             
Troubled debt restructurings ("TDR"s) included in NPLs $   2,033     $   2,470     $   2,681     $   2,632     $   1,680            
TDRs in compliance with modified terms     6,597         6,148         6,492         6,395         6,305            
Total TDRs $    8,630     $    8,618     $    9,173     $    9,027     $    7,985            
                             

(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)                        
                         
  September 30, 2017   June 30, 2017   March 31, 2017   December 31, 2016   September 30, 2016      
Assets                        
Cash and due from banks $   8,682     $   19,352     $   17,457     $   16,559     $   18,905        
Interest-bearing deposits with banks     36,870         30,806         69,978         34,206         30,118        
  Cash and cash equivalents     45,552         50,158         87,435         50,765         49,023        
Investment securities, available for sale     471,721         443,687         391,028         566,996         366,910        
Investment securities, held to maturity     6,255         5,161         5,194         2,879         2,896        
Investment securities, trading     4,423         4,021         4,138         3,888         3,702        
Loans held for sale     6,327         8,590         3,015         9,621         11,506        
Portfolio loans and leases, originated     2,433,054         2,409,964         2,286,814         2,240,987         2,176,549        
Portfolio loans and leases, acquired     244,291         256,687         268,775         294,438         316,808        
  Total portfolio loans and leases     2,677,345         2,666,651         2,555,589         2,535,425         2,493,357        
Less: Allowance for losses on originated loan and leases     (16,957 )       (16,374 )       (17,069 )       (17,458 )       (17,716 )      
Less: Allowance for losses on acquired loan and leases     (47 )       (25 )       (38 )       (28 )       (28 )      
  Total allowance for loan and lease losses     (17,004 )       (16,399 )       (17,107 )       (17,486 )       (17,744 )      
  Net portfolio loans and leases     2,660,341         2,650,252         2,538,482         2,517,939         2,475,613        
Premises and equipment     44,544         44,446         40,515         41,778         42,559        
Accrued interest receivable     9,287         8,717         8,392         8,533         8,066        
Mortgage servicing rights     5,732         5,683         5,686         5,582         4,793        
Bank owned life insurance     39,881         39,680         39,479         39,279         39,055        
Federal Home Loan Bank ("FHLB") stock     16,248         15,168         8,505         17,305         13,185        
Goodwill     107,127         107,127         104,765         104,765         104,765        
Intangible assets     21,407         22,084         19,864         20,405         21,235        
Other investments     8,941         8,682         8,716         8,627         9,121        
Other assets     29,035         24,763         27,403         23,168         21,651        
  Total assets $   3,476,821     $   3,438,219     $   3,292,617     $   3,421,530     $   3,174,080        
                                         
Liabilities                        
Deposits                        
  Noninterest-bearing $   760,614     $   818,475     $   771,556     $   736,180     $   718,015        
  Interest-bearing     1,923,567         1,863,288         1,865,009         1,843,495         1,759,862        
  Total deposits     2,684,181         2,681,763         2,636,565         2,579,675         2,477,877        
Short-term borrowings     180,874         130,295         23,613         204,151         50,065        
Long-term FHLB advances     134,651         164,681         174,711         189,742         204,772        
Subordinated notes     29,573         29,559         29,546         29,532         29,518        
Accrued interest payable     2,267         2,830         2,722         2,734         1,854        
Other liabilities     43,383         34,114         37,365         34,569         31,535        
  Total liabilities     3,074,929         3,043,242         2,904,522         3,040,403         2,795,621        
                         
Shareholders' equity                        
Common stock     21,248         21,162         21,141         21,111         21,064        
Paid-in capital in excess of par value     235,412         234,654         233,910         232,806         231,398        
Less: common stock held in treasury, at cost     (68,134 )       (67,091 )       (66,969 )       (66,950 )       (66,895 )      
Accumulated other comprehensive (loss) income, net of tax     (1,400 )       (1,564 )       (1,990 )       (2,409 )       2,128        
Retained earnings     214,766         207,816         202,003         196,569         190,764        
  Total shareholders equity     401,892         394,977         388,095         381,127         378,459        
  Total liabilities and shareholders' equity $   3,476,821     $   3,438,219     $   3,292,617     $   3,421,530     $   3,174,080        
                                             
                                             

 

Bryn Mawr Bank Corporation                          
Supplemental Balance Sheet Information (unaudited)                          
(dollars in thousands)                          
  Portfolio Loans and Leases as of        
  September 30, 2017   June 30, 2017   March 31, 2017   December 31, 2016   September 30, 2016        
Commercial mortgages $   1,224,571     $   1,197,936     $   1,137,870     $   1,110,897     $   1,089,621          
Home equity loans and lines     206,974         208,480         203,962         208,000         206,578          
Residential mortgages     422,524         416,488         418,264         413,540         418,408          
Construction     133,505         156,581         145,699         141,964         133,269          
  Total real estate loans     1,987,574         1,979,485         1,905,795         1,874,401         1,847,876          
Commercial & Industrial     597,595         599,203         567,917         579,791         565,497          
Consumer     31,306         28,485         23,932         25,341         23,717          
Leases     60,870         59,478         57,945         55,892         56,267          
  Total non-real estate loans and leases     689,771         687,166         649,794         661,024         645,481          
  Total portfolio loans and leases $   2,677,345     $   2,666,651     $   2,555,589     $   2,535,425     $   2,493,357          
                                               
                           
  Nonperforming Loans and Leases as of        
  September 30, 2017   June 30, 2017   March 31, 2017   December 31, 2016   September 30, 2016        
Commercial mortgages $   193     $   818     $   315     $   320     $   139          
Home equity loans and lines     613         1,535         1,828         2,289         2,827          
Residential mortgages     1,589         2,589         2,640         2,658         2,845          
Construction     -         -         -         -         -          
  Total nonperforming real estate loans     2,395         4,942         4,783         5,267         5,811          
Commercial & Industrial     1,977         2,112         2,471         2,957         3,960          
Consumer     -         10         -         2         2          
Leases     100         173         75         137         110          
  Total nonperforming non-real estate loans and leases     2,077         2,295         2,546         3,096         4,072          
  Total nonperforming portfolio loans and leases $   4,472     $   7,237     $   7,329     $   8,363     $   9,883          
                                               
                           
  Net Loan and Lease Charge-Offs (Recoveries) for the Three Months Ended        
  September 30, 2017   June 30, 2017   March 31, 2017   December 31, 2016   September 30, 2016        
Commercial mortgage $   (3 )   $   (3 )   $   (3 )   $   (51 )   $   (4 )        
Home equity loans and lines     69         169         438         69         375          
Residential     3         43         27         28         2          
Construction     (1 )       (1 )       (1 )       (1 )       -          
  Total net charge-offs of real estate loans     68         208         461         45         373          
Commercial & Industrial     298         185         59         1,128         95          
Consumer     36         16         39         42         58          
Leases     326         216         111         102         178          
  Total net charge-offs of non-real estate loans and leases     660         417         209         1,272         331          
  Total net charge-offs $   728     $   625     $   670     $   1,317     $   704          
                                               

 

Bryn Mawr Bank Corporation                        
Supplemental Balance Sheet Information (unaudited)                        
(dollars in thousands)                        
  Investment Securities Available for Sale, at Fair Value      
  September 30, 2017   June 30, 2017   March 31, 2017   December 31, 2016   September 30, 2016      
U.S. Treasury securities  $   100     $   100     $   100     $   200,097     $   101        
Obligations of the U.S. Government and agencies      142,711         126,468         100,476         82,198         76,598        
State & political subdivisions - tax-free     23,556         26,958         30,416         33,005         36,735        
State & political subdivisions - taxable     524         524         524         525         529        
Mortgage-backed securities     260,680         230,617         197,420         185,951         184,919        
Collateralized mortgage obligations     39,595         42,549         45,476         48,694         51,344        
Other debt securities     1,100         1,099         1,299         1,299         1,450        
Bond mutual funds     -         11,956         11,920         11,895         11,847        
Other investments     3,455         3,416         3,397         3,332         3,387        
  Total investment securities available for sale, at fair value $   471,721     $   443,687     $   391,028     $   566,996     $   366,910        
                                             
                         
  Unrealized Gain (Loss) on Investment Securities Available for Sale      
  September 30, 2017   June 30, 2017   March 31, 2017   December 31, 2016   September 30, 2016      
U.S. Treasury securities  $   -     $   -     $   -     $   3     $   -        
Obligations of the U.S. Government and agencies      (920 )       (699 )       (803 )       (913 )       946        
State & political subdivisions - tax-free     23         11         (10 )       (96 )       131        
State & political subdivisions - taxable     1         1         1         2         5        
Mortgage-backed securities     869         480         196         (47 )       3,801        
Collateralized mortgage obligations     (640 )       (662 )       (777 )       (794 )       253        
Other debt securities     -         (1 )       (1 )       (1 )       -        
Bond mutual funds     -         -         (36 )       (61 )       (109 )      
Other investments     230         203         132         13         34        
  Total unrealized (losses) gains on investment securities available for sale $   (437 )   $   (667 )   $   (1,298 )   $   (1,894 )   $   5,061        
                                             
                         
  Deposits      
  September 30, 2017   June 30, 2017   March 31, 2017   December 31, 2016   September 30, 2016      
Interest-bearing deposits:                        
  Interest-bearing checking $   395,383     $   381,345     $   395,131     $   379,424     $   333,055        
  Money market     720,613         729,859         757,071         761,657         725,116        
  Savings     264,273         254,903         255,791         232,193         228,391        
  Wholesale non-maturity deposits     48,620         54,675         69,471         74,272         64,664        
  Wholesale time deposits     178,610         120,524         68,164         73,037         99,052        
  Retail time deposits      316,068         321,982         319,381         322,912         309,584        
  Total interest-bearing deposits     1,923,567         1,863,288         1,865,009         1,843,495         1,759,862        
  Noninterest-bearing deposits     760,614         818,475         771,556         736,180         718,015        
  Total deposits $   2,684,181     $   2,681,763     $   2,636,565     $   2,579,675     $   2,477,877        
                                             

 

Bryn Mawr Bank Corporation                            
Detailed Income Statements (unaudited)                            
(dollars in thousands, except per share data)                            
  For the Three Months Ended   For the Nine Months Ended  
  September 30, 2017   June 30, 2017   March 31, 2017   December 31, 2016   September 30, 2016   September 30, 2017   September 30, 2016  
Interest income:                            
Interest and fees on loans and leases $   30,892     $   29,143     $   28,482     $   28,230     $   27,931     $   88,517     $   82,306    
Interest on cash and cash equivalents     36         35         66         53         27         137         115    
Interest on investment securities     2,270         2,059         1,778         1,639         1,556         6,107         4,648    
  Total interest income     33,198         31,237         30,326         29,922         29,514         94,761         87,069    
Interest expense:                                                        
Interest on deposits     2,198         1,983         1,828         1,780         1,575         6,009         4,053    
Interest on short-term borrowings     547         237         27         22         34         811         71    
Interest on FHLB advances and other borrowings     645         682         698         760         818         2,025         2,593    
Interest on subordinated notes     370         370         370         370         370         1,110         1,106    
Total interest expense     3,760         3,272         2,923         2,932         2,797         9,955         7,823    
  Net interest income     29,438         27,965         27,403         26,990         26,717         84,806         79,246    
Provision for loan and lease losses (the "Provision")     1,333         (83 )       291         1,059         1,412         1,541         3,267    
  Net interest income after Provision     28,105         28,048         27,112         25,931         25,305         83,265         75,979    
Noninterest income:                            
Fees for wealth management services      9,651         9,807         9,303         9,327         9,100         28,761         27,363    
Insurance revenue     1,373         943         763         715         886         3,079         3,007    
Capital markets revenue     843         953         -         -         -         1,796         -    
Service charges on deposits     676         630         647         688         688         1,953         2,103    
Loan servicing and other fees     548         519         503         411         497         1,570         1,528    
Net gain on sale of loans     799         520         629         607         879         1,948         2,440    
Net gain (loss) on sale of investment securities available for sale     72         -         1         9         (28 )       73         (86 )  
Net (loss) gain on sale of other real estate owned     -         (12 )       -         -         -         (12 )       (76 )  
Dividends on FHLB and FRB stocks     217         218         214         309         277         649         754    
Other operating income     1,405         1,207         1,167         1,182         1,487         3,779         3,686    
  Total noninterest income     15,584         14,785         13,227         13,248         13,786         43,596         40,719    
Noninterest expense:                            
Salaries and wages      13,602         13,580         12,450         11,855         11,621         39,632         35,556    
Employee benefits      2,631         2,475         2,559         2,207         2,420         7,665         7,341    
Loss on pension termination     -         -         -         -         -         -         -    
Occupancy and bank premises     2,485         2,247         2,526         2,407         2,349         7,258         7,204    
Branch lease termination expense     -         -         -         -         -         -         -    
Furniture, fixtures and equipment     1,726         1,869         1,974         1,869         1,837         5,569         5,651    
Advertising     277         405         386         391         334         1,068         990    
Amortization of intangible assets     677         687         693         830         888         2,057         2,668    
Impairment of intangible assets     -         -         -         -         -         -         -    
Impairment (recovery) of mortgage servicing rights ("MSRs")     3         43         3         (580 )       29         49         711    
Due diligence, merger-related and merger integration expenses     850         1,236         511         -         -         2,597         -    
Professional fees     739         1,049         711         963         937         2,499         2,696    
Pennsylvania bank shares tax     317         297         664         (204 )       675         1,278         1,953    
Information technology     880         821         874         857         881         2,575         2,804    
Other operating expenses      3,997         3,786         3,309         4,492         3,400         11,092         9,012    
  Total noninterest expense     28,184         28,495         26,660         25,087         25,371         83,339         76,586    
Income before income taxes     15,505         14,338         13,679         14,092         13,720         43,522         40,112    
Income tax expense     4,766         4,905         4,635         4,684         4,346         14,306         13,484    
  Net income $   10,739     $   9,433     $   9,044     $   9,408     $   9,374     $   29,216     $   26,628    
Per share data:                                                        
Weighted average shares outstanding     17,023,046         16,984,563         16,954,132         16,916,705         16,860,727         16,987,499         16,840,457    
Dilutive common shares     210,502         248,204         228,557         247,970         211,631         234,552         153,998    
Weighted average diluted shares      17,233,548         17,232,767         17,182,689         17,164,675         17,072,358         17,222,051         16,994,455    
Basic earnings (loss) per common share $   0.63     $   0.56     $   0.53     $   0.56     $   0.56     $   1.72     $   1.58    
Diluted earnings (loss) per common share $   0.62     $   0.55     $   0.53     $   0.55     $   0.55     $   1.70     $   1.57    
Dividend declared per share $   0.22     $   0.21     $   0.21     $   0.21     $   0.21     $   0.64     $   0.61    
Effective tax rate   30.74 %     34.21 %     33.88 %     33.24 %     31.68 %     32.87 %     33.62 %  
                             
                             

 

Bryn Mawr Bank Corporation                         
Tax-Equivalent Net Interest Margin (unaudited)                         
(dollars in thousands, except per share data)                         
    For The Three Months Ended   For The Nine Months Ended
    September 30, 2017 June 30, 2017 March 31, 2017 December 31, 2016 September 30, 2016   September 30, 2017 September 30, 2016
(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   $   26,628   $   36   0.54 % $   26,266   $   35   0.53 % $   39,669   $   66   0.67 % $   55,298   $   53   0.38 % $   33,532   $   27   0.32 %   $   30,807   $   137   0.59 % $   39,157   $   115   0.39 %
Investment securities - available for sale:                                              
  Taxable       427,106       2,160   2.01 %     391,112       1,940   1.99 %     354,229       1,653   1.89 %     344,931       1,498   1.73 %     329,293       1,423   1.72 %       391,082       5,799   1.98 %     323,866       4,263   1.76 %
  Tax-exempt       25,268       134   2.10 %     28,970       150   2.08 %     31,485       164   2.11 %     34,985       175   1.99 %     37,893       189   1.98 %       28,552       448   2.10 %     39,243       567   1.93 %
  Total investment securities - available for sale        452,374       2,294   2.01 %     420,082       2,090   2.00 %     385,714       1,817   1.91 %     379,916       1,673   1.75 %     367,186       1,612   1.75 %       419,634       6,247   1.99 %     363,109       4,830   1.78 %
                                               
Investment securities  - held to maturity       6,044       11   0.72 %     5,181       5   0.39 %     3,702       7   0.77 %     2,889       7   0.96 %     2,907       6   0.82 %       4,984       4   0.11 %     1,782       4   0.30 %
Investment securities  - trading       4,282       8   0.74 %     4,137       13   1.26 %     3,890       8   0.83 %     3,853       16   1.65 %     3,523       2   0.23 %       4,105       2   0.07 %     3,703       2   0.07 %
                                               
Loans and leases *       2,680,317       31,058   4.60 %     2,615,610       29,309   4.49 %     2,555,677       28,622   4.54 %     2,517,967       28,354   4.48 %     2,476,972       28,032   4.50 %       2,617,658       88,989   4.55 %     2,399,683       82,571   4.60 %
                                               
  Total interest-earning assets        3,169,645       33,407   4.18 %     3,071,276       31,452   4.11 %     2,988,652       30,520   4.14 %     2,959,923       30,103   4.05 %     2,884,120       29,679   4.09 %       3,077,188       95,379   4.14 %     2,807,434       87,522   4.16 %
                                               
Cash and due from banks       15,709           15,727           14,942           16,127           16,228             15,462           16,380      
Less: allowance for loan and lease losses       (16,564 )         (17,549 )         (17,580 )         (17,858 )         (17,257 )           (17,227 )         (16,924 )    
Other assets        273,116           263,853           258,046           257,676           258,928             265,061           261,752      
                                               
  Total assets   $   3,441,906       $   3,333,307       $   3,244,060       $   3,215,868       $   3,142,019         $   3,340,484       $   3,068,642      
                                               
Liabilities:                                              
                                               
Interest-bearing deposits:                                              
  Savings, NOW and market rate deposits   $   1,359,293   $   823   0.24 % $   1,375,949   $   813   0.24 % $   1,388,561   $   756   0.22 % $   1,328,577   $   686   0.21 % $   1,286,404   $   641   0.20 %   $   1,374,494   $   2,392   0.23 % $   1,280,023   $   1,799   0.19 %
  Wholesale deposits       190,849       548   1.14 %     154,424       378   0.98 %     143,461       317   0.90 %     156,541       319   0.81 %     164,706       327   0.79 %       163,086       1,243   1.02 %     166,136       921   0.74 %
  Retail time deposits        321,352       827   1.02 %     323,287       792   0.98 %     320,172       755   0.96 %     324,158       775   0.95 %     278,579       607   0.87 %       321,608       2,374   0.99 %     247,504       1,333   0.72 %
  Total interest-bearing deposits       1,871,494       2,198   0.47 %     1,853,660       1,983   0.43 %     1,852,194       1,828   0.40 %     1,809,276       1,780   0.39 %     1,729,689       1,575   0.36 %       1,859,188       6,009   0.43 %     1,693,663       4,053   0.32 %
                                               
Borrowings:                                              
Short-term borrowings       182,845       547   1.19 %     98,869       237   0.96 %     47,603       27   0.23 %     40,629       22   0.22 %     40,966       34   0.33 %       110,268       811   0.98 %     35,836       71   0.26 %
Long-term FHLB advances       155,918       645   1.64 %     171,567       682   1.59 %     182,507       698   1.55 %     198,454       760   1.52 %     218,920       818   1.49 %       169,900       2,025   1.59 %     235,002       2,593   1.47 %
Subordinated notes       29,564       370   4.97 %     29,550       370   5.02 %     29,537       370   5.08 %     29,523       370   4.99 %     29,509       370   4.99 %       29,550       1,110   5.02 %     29,496       1,106   5.01 %
  Total borrowings       368,327       1,562   1.68 %     299,986       1,289   1.72 %     259,647       1,095   1.71 %     268,606       1,152   1.71 %     289,395       1,222   1.68 %       309,718       3,946   1.70 %     300,334       3,770   1.68 %
                                               
  Total interest-bearing liabilities       2,239,821       3,760   0.67 %     2,153,646       3,272   0.61 %     2,111,841       2,923   0.56 %     2,077,882       2,932   0.56 %     2,019,084       2,797   0.55 %       2,168,906       9,955   0.61 %     1,993,997       7,823   0.52 %
                                               
Noninterest-bearing deposits       764,562           755,597           711,794           724,465           716,581             744,178           674,601      
Other liabilities       40,166           34,348           38,211           35,478           33,400             37,582           33,375      
  Total noninterest-bearing liabilities       804,728           789,945           750,005           759,943           749,981             781,760           707,976      
                                               
  Total liabilities       3,044,549           2,943,591           2,861,846           2,837,825           2,769,065             2,950,666           2,701,973      
                                               
Shareholders' equity        397,357           389,716           382,214           378,043           372,954             389,818           366,669      
                                               
  Total liabilities and shareholders' equity    $   3,441,906       $   3,333,307       $   3,244,060       $   3,215,868       $   3,142,019         $   3,340,484       $   3,068,642      
                                               
                                               
Net interest spread       3.51 %     3.50 %     3.58 %     3.49 %     3.54 %       3.53 %     3.64 %
Effect of noninterest-bearing sources           0.20 %         0.18 %         0.16 %         0.16 %         0.17 %           0.18 %         0.15 %
                                                                           
Tax-equivalent net interest margin      $   29,647   3.71 %   $   28,180   3.68 %   $   27,597   3.74 %   $   27,171   3.65 %   $   26,882   3.71 %     $   85,424   3.71 %   $   79,699   3.79 %
                                               
Tax-equivalent adjustment      $    209   0.03 %   $    215   0.03 %   $    194   0.02 %   $    181   0.02 %   $    165   0.02 %     $    618   0.03 %   $    453   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     $   708   0.10 %   $   402   0.06 %   $   726   0.12 %   $   742   0.12 %   $   578   0.09 %     $   1,836   0.09 %   $   2,607   0.15 %
Retail time deposits         (15 ) -0.02 %       (18 ) -0.02 %       (19 ) -0.02 %       (19 ) -0.02 %       (29 ) -0.04 %         (52 ) -0.02 %       (200 ) -0.11 %
Short-term borrowings         -   0.00 %       -   0.00 %       -   0.00 %       -   0.00 %       -   0.00 %         -   0.00 %       (12 ) -0.04 %
Long-term FHLB advances and other borrowings         (30 ) -0.08 %       (30 ) -0.07 %       (30 ) -0.07 %       (30 ) -0.06 %       (30 ) -0.05 %         (91 ) -0.07 %       (90 ) -0.05 %
Net interest income from fair value marks     $   753       $   450       $   775       $   791       $   637         $   1,979       $   2,909    
Purchase accounting effect on tax-equivalent margin         0.09 %         0.06 %         0.11 %         0.11 %         0.09 %           0.09 %         0.14 %
* 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 Nine Months Ended  
  September 30, 2017   June 30, 2017   March 31, 2017   December 31, 2016   September 30, 2016   September 30, 2017   September 30, 2016  
Reconciliation of Net Income to Net Income (core):                            
Net income (a GAAP measure) $   10,739     $   9,433     $   9,044     $   9,408     $   9,374     $   29,216     $   26,628    
Less: Tax-effected non-core noninterest income:                            
  Loss (gain) on sale of investment securities available for sale     (47 )       -         (1 )       (6 )       18         (47 )       56    
Add: Tax-effected non-core noninterest expense items:                            
  Loss on pension termination     -         -         -         -         -         -         -    
  Severance expense (Salaries and wages)     -         -         -         -         -         -         -    
  Branch lease termination expense     -         -         -         -         -         -         -    
  Debt and swap prepayment penalty (Other operating expenses)     -         -         -         -         -         -         -    
  Impairment of intangible assets     -         -         -         -         -         -         -    
  Due diligence, merger-related and merger integration  expenses     553         803         332         -         -         1,688         -    
Net income (core) (a non-GAAP measure) $    11,245     $    10,236     $    9,375     $    9,402     $    9,392     $    30,857     $    26,684    
                                                         
Calculation of Basic and Diluted Earnings per Common Share (core):                          
Weighted average common shares outstanding     17,023,046         16,984,563         16,954,132         16,916,705         16,860,727         16,987,499         16,840,457    
Dilutive common shares     210,502         248,204         228,557         247,970         211,631         234,552         153,998    
Weighted average diluted shares      17,233,548         17,232,767         17,182,689         17,164,675         17,072,358         17,222,051         16,994,455    
Basic earnings per common share (core) (a non-GAAP measure) $   0.66     $   0.60     $   0.55     $   0.56     $   0.56     $   1.82     $   1.58    
Diluted earnings per common share (core) (a non-GAAP measure) $   0.65     $   0.59     $   0.55     $   0.55     $   0.55     $   1.79     $   1.57    
                             
Calculation of Return on Average Tangible Equity:                            
Net income (loss) $   10,739     $   9,433     $   9,044     $   9,408     $   9,374     $   29,216     $   26,628    
Add: Tax-effected amortization and impairment of intangible assets     440         447         450         540         577         1,337         1,734    
Net tangible income (numerator) $   11,179     $   9,880     $   9,494     $   9,948     $   9,951     $   30,553     $   28,362    
                             
Average shareholders' equity $   397,357     $   389,716     $   382,214     $   378,043     $   372,954     $   389,818     $   366,669    
Less: Average goodwill and intangible assets     (128,917 )       (126,537 )       (124,884 )       (125,614 )       (126,505 )       (126,794 )       (127,398 )  
Net average tangible equity (denominator) $   268,440     $   263,179     $   257,330     $   252,429     $   246,449     $   263,024     $   239,271    
                             
Return on tangible equity (a non-GAAP measure)   16.52 %     15.06 %     14.96 %     15.68 %     16.06 %     15.53 %     15.83 %  
                             
Calculation of Tangible Equity Ratio:                            
Total shareholders' equity $   401,892     $   394,977     $   388,095     $   381,127     $   378,459            
Less: Goodwill and intangible assets     (128,534 )       (129,211 )       (124,629 )       (125,170 )       (126,000 )          
Net tangible equity (numerator) $   273,358     $   265,766     $   263,466     $   255,957     $   252,459            
                             
Total assets $   3,476,821     $   3,438,219     $   3,292,617     $   3,421,530     $   3,174,080            
Less: Goodwill and intangible assets     (128,534 )       (129,211 )       (124,629 )       (125,170 )       (126,000 )          
Tangible assets (denominator) $   3,348,287     $   3,309,008     $   3,167,988     $   3,296,360     $   3,048,080            
                             
Tangible equity ratio   8.16 %     8.03 %     8.32 %     7.76 %     8.28 %          
                             
Calculation of Efficiency Ratio:                            
Noninterest expense $   28,184     $   28,495     $   26,660     $   25,087     $   25,371     $   83,339     $   76,787    
Less: certain noninterest expense items*:                            
  Loss on pension termination     -         -         -         -         -         -         -    
  Severance expense (Salaries and wages)     -         -         -         -         -         -         -    
  Branch lease termination expense     -         -         -         -         -         -         -    
  Debt and swap prepayment penalty (Other operating expenses)     -         -         -         -         -         -         -    
  Amortization of intangibles     (677 )       (687 )       (693 )       (830 )       (888 )       (2,057 )       (2,668 )  
  Impairment of intangible assets     -         -         -         -         -         -         -    
  Due diligence, merger-related and merger integration  expenses     (850 )       (1,236 )       (511 )       -         -         (2,597 )       -    
Noninterest expense (adjusted) (numerator) $   26,657     $   26,572     $   25,456     $   24,257     $   24,483     $   78,685     $   74,119    
                             
Noninterest income $   15,584     $   14,785     $   13,227     $   13,248     $   13,786     $   43,596     $   40,920    
Less: non-core noninterest income items:                            
  Loss (gain) on sale of investment securities available for sale     (72 )       -         (2 )       (9 )       28         (73 )       86    
Noninterest income (core) $   15,512     $   14,785     $   13,225     $   13,239     $   13,814     $   43,523     $   41,006    
Net interest income     29,438