Bryn Mawr Bank Corporation Reports Third Quarter Net Income of $16.4 Million, Wealth Assets Surpass $15 Billion Milestone, Declares $0.26 Dividend

Bryn Mawr, Pennsylvania, UNITED STATES


BRYN MAWR, Pa., Oct. 17, 2019 (GLOBE NEWSWIRE) -- Bryn Mawr Bank Corporation (NASDAQ: BMTC) (the “Corporation”), parent of The Bryn Mawr Trust Company (the “Bank”), today reported net income of $16.4 million, or $0.81 diluted earnings per share for the three months ended September 30, 2019, as compared to net income of $15.8 million, or $0.78 diluted earnings per share, for the three months ended June 30, 2019, and $16.7 million, or $0.82 diluted earnings per share, for the three months ended September 30, 2018.

On a non-GAAP basis, core net income, which excludes income tax charges incurred in connection with the Tax Cuts and Jobs Act (“Tax Reform”), due diligence and merger-related expenses, one-time costs associated with our voluntary Years of Service Incentive Program (the “Incentive Program”), and other non-core income and expense items, as detailed in the appendix to this earnings release, was $16.4 million, or $0.81 diluted earnings per share, for the three months ended September 30, 2019, as compared to $15.8 million, or $0.78 diluted earnings per share, for the three months ended June 30, 2019, and $17.1 million, or $0.84 diluted earnings per share, for the three months ended September 30, 2018. Management believes core net income is an important measure 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.

“This is an exciting time for BMT as the Board’s commitment to building a market-leading company continues to manifest through another quarter of solid earnings and strong credit performance,” commented Frank Leto, President and Chief Executive Officer. “Our wealth business continued its growth trajectory as assets under management surpassed $15 billion and we believe our strong sales pipeline in this and other business lines is indicative of our focus on new business development,” Mr. Leto continued. “Our client-focused team is going to market as One BMT, bringing a unified, full suite of banking and wealth financial solutions to the communities we serve enabling us to continue our momentum into year-end and 2020.”

The Board of Directors of the Corporation declared a quarterly dividend of $0.26 per share, payable December 1, 2019 to shareholders of record as of November 1, 2019.

SIGNIFICANT ITEMS OF NOTE

Results of Operations – Third Quarter 2019 Compared to Second Quarter 2019

  • Net income for the three months ended September 30, 2019 was $16.4 million, compared to net income of $15.8 million for the three months ended June 30, 2019. Net interest income for the three months ended September 30, 2019 was $37.4 million, an increase of $787 thousand over the linked quarter. The provision for loan and lease losses (the “Provision”) for the three months ended September 30, 2019 decreased $708 thousand as compared to the second quarter of 2019. Total noninterest income decreased $766 thousand, total noninterest expense remained relatively unchanged, and income tax expense increased $163 thousand for the three months ended September 30, 2019, as compared to the three months ended June 30, 2019.
     
  • Net interest income for the three months ended September 30, 2019 was $37.4 million, an increase of $787 thousand over the linked quarter. Tax-equivalent net interest income for the three months ended September 30, 2019 was $37.5 million, an increase of $781 thousand over the linked quarter. Tax-equivalent net interest income for the third quarter of 2019 was impacted by the accretion of purchase accounting fair value marks of $1.6 million as compared to $1.3 million for the linked quarter. Excluding the effects of these purchase accounting fair value marks, the adjusted tax-equivalent net interest income for the three months ended September 30, 2019 was $35.9 million, an increase of $494 thousand over the linked quarter. A reconciliation of this and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release. Items contributing to the increase in tax-equivalent net interest income adjusted for purchase accounting included increases of $431 thousand and $358 thousand in tax-equivalent interest and fees earned on loans and leases and tax-equivalent interest income on available for sale investment securities, respectively, and a decrease of $165 thousand in interest paid on deposits, partially offset by an increase of $580 thousand of interest expense on short-term borrowings for the three months ended September 30, 2019 as compared to the linked quarter ended June 30, 2019.

    Tax-equivalent interest and fees earned on loans and leases for the three months ended September 30, 2019 increased $739 thousand as compared to the linked quarter. Average loans and leases for the three months ended September 30, 2019 increased $8.7 million over the linked quarter and experienced a two basis point increase in tax-equivalent yield.

    Tax-equivalent interest income on available for sale investment securities for the three months ended September 30, 2019 increased $358 thousand as compared to the linked quarter. Average available for sale investment securities increased by $33.0 million over the linked quarter and experienced an eight basis point increase in tax-equivalent yield.

    Interest expense on deposits for the three months ended September 30, 2019 decreased $145 thousand over the linked quarter. Average interest-bearing deposits decreased $18.6 million coupled with a three basis point decrease in the rate paid as compared to the linked quarter.

    Interest expense on short-term borrowings for the three months ended September 30, 2019 increased $580 thousand over the linked quarter. Average short-term borrowings increased $101.5 million coupled with a 10 basis point increase in the rate paid as compared to the linked quarter.
  • The tax-equivalent net interest margin was 3.54% for the three months ended September 30, 2019 as compared to 3.55% for the linked quarter. Adjusting for the impact of the accretion of purchase accounting fair value marks, the adjusted tax-equivalent net interest margin was 3.39% for the three months ended September 30, 2019 as compared to 3.43% for the linked quarter. A reconciliation of this and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release.
     
  • Noninterest income of $19.5 million for the three months ended September 30, 2019 decreased $766 thousand as compared to the linked quarter. Contributing to the decrease were decreases of $797 thousand and $684 thousand in other operating income and fees for wealth management services, respectively, partially offset by an increase of $624 thousand in capital markets revenue.
     
  • Noninterest expense of $35.2 million for the three months ended September 30, 2019 remained relatively unchanged, decreasing $15 thousand as compared to the second quarter of 2019. The decrease on a linked quarter basis was primarily due to decreases of $272 thousand, $233 thousand and $218 thousand in professional fees, furniture, fixtures and equipment expenses, and other operating expenses, respectively, partially offset by an increase of $727 thousand in salaries and performance based incentives.
     
  • The Provision decreased $708 thousand for the three months ended September 30, 2019 to $919 thousand, as compared to $1.6 million for the second quarter of 2019. Net loan and lease charge-offs for the third quarter of 2019 totaled $1.3 million as compared to $1.1 million for the second quarter of 2019. The effect on the Provision of the $263 increase in net charge-offs on a linked quarter basis was offset by improvements in certain qualitative factors linked to economic indicators used in the calculation of the allowance for loan and lease losses (the “Allowance”).
     
  • The effective tax rate of 21.20% for the third quarter of 2019 was relatively unchanged compared to 21.18% for the second quarter of 2019.

Results of Operations – Third Quarter 2019 Compared to Third Quarter 2018

  • Net income for the three months ended September 30, 2019 was $16.4 million, or $0.81 diluted earnings per share, as compared to net income of $16.7 million, or diluted earnings per share of $0.82 for the same period in 2018. Net interest income for the three months ended September 30, 2019 was $37.4 million, an increase of $669 thousand as compared to the same period in 2018. The Provision for the three months ended September 30, 2019 increased $255 thousand as compared to the same period in 2018. Total noninterest income increased $1.2 million, total noninterest expense increased $1.6 million, and income tax expense increased $336 thousand for the three months ended September 30, 2019 as compared to the same period in 2018.

    On a non-GAAP basis, core net income, which excludes income tax charges incurred in connection with Tax Reform, due diligence and merger-related expenses, one-time costs associated with the Incentive Program, and other non-core income and expense items, as detailed in the appendix to this earnings release, was $16.4 million, or $0.81 per diluted share, for the three months ended September 30, 2019 as compared to $17.1 million, or $0.84 per diluted share, for the same period in 2018. Management believes core net income is an important measure 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.
  • Net interest income for the three months ended September 30, 2019 was $37.4 million, an increase of $669 thousand as compared to the same period in 2018. Tax-equivalent net interest income for the three months ended September 30, 2019 was $37.5 million, an increase of $666 thousand as compared to the same period in 2018. Tax-equivalent net interest income for the third quarter of 2019 was impacted by the accretion of purchase accounting fair value marks of $1.6 million as compared to $1.7 million for the same period in 2018. Excluding the effects of these purchase accounting fair value marks, the adjusted tax-equivalent net interest income for the three months ended September 30, 2019 was $35.9 million, an increase of $794 thousand as compared to the same period in 2018. A reconciliation of this and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release. Items contributing to the increase adjusted for purchase accounting included increases of $3.4 million and $808 thousand in tax-equivalent interest and fees earned on loans and leases and tax-equivalent interest earned on available for sale investment securities, respectively, as well as decreases of $159 thousand and $153 thousand in interest paid on short-term borrowings and long-term Federal Home Loan Bank (“FHLB”) advances, respectively. These increases to tax-equivalent net interest income were partially offset by a $3.8 million increase in interest paid on deposits for the three months ended September 30, 2019 as compared to the same period in 2018.

    Tax-equivalent interest and fees earned on loans and leases increased $3.4 million for the three months ended September 30, 2019 as compared to the same period in 2018. Average loans and leases for the third quarter of 2019 increased $153.2 million from the same period in 2018 and experienced a 17 basis point increase in tax-equivalent yield.

    Tax-equivalent interest income on available for sale investment securities increased $808 thousand for the three months ended September 30, 2019 as compared to the same period in 2018. Average available for sale investment securities increased by $71.2 million as compared to the same period in 2018 and experienced a 27 basis point tax-equivalent yield increase.

    Interest expense on short-term borrowings and long-term FHLB advances for the three months ended September 30, 2019 decreased $159 thousand and $151 thousand, respectively as compared to the same period in 2018. Average short-term borrowings and average long-term FHLB advances decreased $38.2 million and $35.8 million, respectively, offset by a 10 and 19 basis point increase in the rate paid on short-term borrowings and long-term FHLB advances, respectively, as compared to the same period in 2018.

    Interest expense on deposits for the three months ended September 30, 2019 increased $4.0 million as compared to the same period in 2018. The increase was primarily due to a 48 basis point increase in the rate paid on deposits as compared to the same period in 2018. The increase in rate paid was related to the competitive dynamics in the markets in which we operate and certain promotional interest rates offered during the first and second quarters of 2019. A $283.0 million increase in average interest-bearing deposits also contributed to the increase in interest expense on deposits.
  • The tax-equivalent net interest margin was 3.54% for the three months ended September 30, 2019 as compared to 3.69% for the same period in 2018. Adjusting for the impact of the accretion of purchase accounting fair value marks, the adjusted tax-equivalent net interest margin was 3.39% and 3.52% for three months ended September 30, 2019 and 2018, respectively. The main drivers for the decrease in the adjusted tax-equivalent net interest margin were the rate and volume increases of interest-bearing deposits as discussed above. A reconciliation of this and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release.
     
  • Noninterest income of $19.5 million for the three months ended September 30, 2019 increased by $1.2 million as compared to the same period in 2018. Increases of $1.4 million and $483 thousand in capital markets revenue and fees for wealth management services, respectively, were partially offset by a decrease of $916 thousand in other operating income.
     
  • Noninterest expense of $35.2 million for the three months ended September 30, 2019 increased $1.6 million as compared to the same period in 2018. Contributing to the increase were increases of $1.2 million, $291 thousand, $265 thousand, $238 thousand and $222 thousand in salaries and wages, occupancy and bank premises expense, furniture, fixtures and equipment expenses, advertising expense, and data processing expense, respectively. Partially offsetting these increases were decreases of $389 thousand and $371 thousand in due diligence, merger-related and merger integration expenses and other operating expenses, respectively.
     
  • The Provision increased by $255 thousand for the three months ended September 30, 2019 to $919 thousand, as compared to $664 thousand for the same period in 2018. The increase in Provision was related to the level of loan and lease growth during the third quarter of 2019 as compared to the negative growth experienced during the same period in 2018. Total portfolio loans and leases increased by $6.1 million during the third quarter of 2019, as compared to an $8.0 million decrease in total portfolio loans and leases for the same period in 2018. Net charge-offs of loans and leases decreased slightly, by $54 thousand for the third quarter of 2019 as compared to the same period in 2018.
     
  • The effective tax rate for the third quarter of 2019 increased to 21.20% as compared to 19.60% for the third quarter of 2018. The increase was primarily related to a $281 thousand decrease in net discrete tax benefits for the third quarter of 2019 as compared to the same period in 2018. These discrete items were the result of excess tax benefits from stock-based compensation as well as the re-measurement of deferred tax items related to Tax Reform.

Financial Condition – September 30, 2019 Compared to December 31, 2018

  • Total assets as of September 30, 2019 were $4.83 billion, an increase of $176.2 million from December 31, 2018. The increase was primarily due to a $113.6 million increase in portfolio loans and leases, a $99.8 million increase in other assets, and $42.2 million of operating lease right-of-use assets as of September 30, 2019 included on the balance sheet as a result of a required accounting pronouncement adopted in the first quarter of 2019. The $99.8 million increase in other assets was primarily due to a $50.0 million increase in the fair value of interest rate swaps. Partially offsetting these increases was a decrease in available for sale investment securities of $133.3 million.
     
  • Available for sale investment securities as of September 30, 2019 totaled $604.2 million, a decrease of $133.3 million from December 31, 2018. The decrease was primarily related to the maturing of $200.0 million short-term U.S. Treasury securities in the first quarter of 2019, partially offset by a $99.0 million increase in mortgage-backed securities.
     
  • Total portfolio loans and leases of $3.54 billion as of September 30, 2019 increased by $113.6 million from December 31, 2018, an increase of 3.3%. Increases of $104.9 million, $18.6 million, $14.2 million, $10.9 million and $3.7 million in commercial mortgages, leases, commercial and industrial loans, residential mortgages and consumer loans, respectively, were offset by decreases of $29.4 million and $9.3 million in construction loans and home equity loans and lines, respectively.
     
  • The Allowance as of September 30, 2019 was $20.8 million, or 0.59% of portfolio loans and leases, as compared to $19.4 million, or 0.57% of portfolio loans and leases as of December 31, 2018. In addition to the ratio of Allowance to portfolio loans and leases, management also calculates two non-GAAP measures: the Allowance for originated loans and leases as a percentage of originated loans and leases, which was 0.66% as of September 30, 2019, as compared to 0.67% as of December 31, 2018, and the Allowance plus the remaining loan mark as a percentage of gross loans, which was 0.92% as of September 30, 2019, as compared to 1.08% as of December 31, 2018. A reconciliation of these and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release.
     
  • Deposits of $3.70 billion as of September 30, 2019 increased $99.4 million from December 31, 2018. Increases of $219.1 million, $120.5 million, $114.1 million, $2.8 million, and $1.5 million in wholesale non-maturity deposits, money market accounts, interest-bearing demand accounts, noninterest bearing deposits, and savings accounts, respectively, were offset by decreases of $283.2 million and $75.4 million in in wholesale time deposits and retail time deposits, respectively.
     
  • Borrowings of $368.6 million as of September 30, 2019, which include short-term borrowings, long-term FHLB advances, subordinated notes and junior subordinated debentures, decreased $59.3 million from December 31, 2018, primarily due to decreases of $48.9 million and $10.6 million in short-term borrowings and long-term FHLB advances, respectively.
     
  • Wealth assets under management, administration, supervision and brokerage (“wealth assets”) totaled $15.61 billion as of September 30, 2019, an increase of $2.18 billion from December 31, 2018. Wealth assets consisted of $9.21 billion of wealth assets where fees are set at fixed amounts and $6.40 billion of wealth assets where fees are predominantly determined based on the market value of the assets held in their accounts as of September 30, 2019, an increase of $1.33 billion and $363.6 million, respectively, from December 31, 2018.
     
  • The capital ratios for the Bank and the Corporation, as of September 30, 2019, as shown in the attached tables, indicate regulatory capital levels in excess of the regulatory minimums and the levels necessary for the Bank to be considered “well capitalized.”

FORWARD LOOKING STATEMENTS AND SAFE HARBOR

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

Such forward-looking statements involve known and unknown risks and uncertainties. A number of factors, many of which are beyond the Corporation's control, could cause our actual results, events or developments, or industry results, to be materially different from any future results, events or developments expressed, implied or anticipated by such forward-looking statements, and so our business and financial condition and results of operations could be materially and adversely affected. Such factors include, among others, our need for capital, our ability to control operating costs and expenses, and to manage loan and lease delinquency rates; the credit risks of lending activities and overall quality of the composition of our loan, lease and securities portfolio; the impact of economic conditions, consumer and business spending habits, and real estate market conditions on our business and in our market area; changes in the levels of general interest rates, deposit interest rates, or net interest margin and funding sources; changes in banking regulations and policies and the possibility that any banking agency approvals we might require for certain activities will not be obtained in a timely manner or at all or will be conditioned in a manner that would impair our ability to implement our business plans; changes in accounting policies and practices or or accounting standards, including ASU 2016-13 (Topic 326), “Measurement of Credit Losses on Financial Instruments,” commonly referenced as the Current Expected Credit Loss (“CECL”) model, which will change how we estimate credit losses and may increase the required level of our allowance for credit losses after adoption on January 1, 2020; unanticipated regulatory or legal proceedings, outcomes of litigation or other contingencies; cybersecurity events; the inability of key third-party providers to perform their obligations to us; our ability to attract and retain key personnel; competition in our marketplace; war or terrorist activities; material differences in the actual financial results, cost savings and revenue enhancements associated with our acquisitions; uncertainty regarding the future of LIBOR; and other factors as described in our securities filings. All forward-looking statements and information set forth herein are based on management’s current beliefs and assumptions as of the date hereof and speak only as of the date they are made. The Corporation does not undertake to update forward-looking statements.

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


              
Bryn Mawr Bank Corporation 
Summary Financial Information (unaudited) 
(dollars in thousands, except per share data) 
 
 As of or For the Three Months Ended For the Nine Months Ended
 September 30,
2019
 June 30,
2019
 March 31,
2019
 December 31,
2018
 September 30,
2018
 September 30,
2019
 September 30,
2018
Consolidated Balance Sheet (selected items)             
Interest-bearing deposits with banks$86,158  $49,643  $29,449  $34,357  $35,233     
Investment securities 625,452   606,844   578,629   753,628   545,320     
Loans held for sale 5,767   6,333   2,884   1,749   4,111     
Portfolio loans and leases 3,540,747   3,534,665   3,523,514   3,427,154   3,381,475     
Allowance for loan and lease losses ("ALLL") (20,777)  (21,182)  (20,616)  (19,426)  (18,684)    
Goodwill and other intangible assets 204,096   205,050   206,006   207,467   208,165     
Total assets 4,828,641   4,736,565   4,631,993   4,652,485   4,388,442     
Deposits - interest-bearing 2,794,079   2,691,502   2,755,307   2,697,468   2,522,863     
Deposits - non-interest-bearing 904,409   940,911   882,310   901,619   834,363     
Short-term borrowings 203,471   207,828   124,214   252,367   226,498     
Long-term FHLB advances 44,735   47,941   55,407   55,374   72,841     
Subordinated notes 98,660   98,616   98,571   98,526   98,482     
Jr. subordinated debentures 21,709   21,665   21,622   21,580   21,538     
Total liabilities 4,227,706   4,146,410   4,056,886   4,087,781   3,837,017     
Total shareholders' equity 600,935   590,155   575,107   564,704   551,425     
              
Average Balance Sheet (selected items)             
Interest-bearing deposits with banks$48,597  $37,843  $32,742  $38,957  $37,467  $39,785  $37,573 
Investment securities 622,336   587,518   569,915   554,265   546,998   593,449   543,948 
Loans held for sale 4,375   3,353   1,214   2,005   4,932   2,992   4,072 
Portfolio loans and leases 3,528,548   3,520,866   3,476,525   3,397,479   3,374,767   3,508,837   3,337,669 
Total interest-earning assets 4,203,856   4,149,580   4,080,396   3,992,706   3,964,164   4,145,063   3,923,262 
Goodwill and intangible assets 204,637   205,593   206,716   207,893   207,880   205,641   207,158 
Total assets 4,760,074   4,651,625   4,545,129   4,413,000   4,376,148   4,653,064   4,331,605 
Deposits - interest-bearing 2,776,226   2,794,854   2,674,194   2,602,412   2,493,213   2,748,798   2,474,254 
Short-term borrowings 169,985   68,529   157,652   128,429   208,201   132,100   195,483 
Long-term FHLB advances 45,698   52,397   55,385   67,363   81,460   51,125   102,312 
Subordinated notes 98,634   98,587   98,542   98,497   98,457   98,588   98,450 
Jr. subordinated debentures 21,680   21,637   21,595   21,553   21,511   21,638   21,470 
Total interest-bearing liabilities 3,112,223   3,036,004   3,007,368   2,918,254   2,902,842   3,052,249   2,891,969 
Total liabilities 4,164,763   4,070,160   3,973,043   3,856,694   3,828,241   4,070,025   3,794,979 
Total shareholders' equity 595,311   581,465   572,086   556,306   547,907   583,039   536,626 
              
Income Statement             
Net interest income$37,398  $36,611  $37,647  $37,987  $36,729  $111,656  $111,484 
Provision for loan and lease losses 919   1,627   3,736   2,362   664   6,282   4,831 
Noninterest income 19,455   20,221   19,253   18,097   18,274   58,929   57,885 
Noninterest expense 35,173   35,188   39,724   34,845   33,592   110,085   105,458 
Income tax expense 4,402   4,239   2,764   1,746   4,066   11,405   12,419 
Net income 16,359   15,778   10,676   17,131   16,681   42,813   46,661 
Net (loss) income attributable to noncontrolling interest (1)  (7)  (1)  (5)  (1)  (9)  5 
Net income attributable to Bryn Mawr Bank Corporation 16,360   15,785   10,677   17,136   16,682   42,822   46,656 
Basic earnings per share 0.81   0.78   0.53   0.85   0.82   2.13   2.31 
Diluted earnings per share 0.81   0.78   0.53   0.84   0.82   2.12   2.28 
Net income (core) (1) 16,360   15,785   14,230   17,167   17,140   46,375   53,453 
Basic earnings per share (core) (1) 0.81   0.78   0.71   0.85   0.85   2.30   2.64 
Diluted earnings per share (core) (1) 0.81   0.78   0.70   0.84   0.84   2.29   2.61 
Dividends paid or accrued per share 0.26   0.26   0.25   0.25   0.25   0.77   0.69 
Profitability Indicators             
Return on average assets 1.36%  1.36%  0.95%  1.54%  1.51%  1.23%  1.44%
Return on average equity 10.90%  10.89%  7.57%  12.22%  12.08%  9.82%  11.62%
Return on tangible equity(1) 17.35%  17.62%  12.65%  20.37%  20.25%  15.94%  19.74%
Return on tangible equity (core)(1) 17.35%  17.62%  16.59%  20.40%  20.78%  17.19%  22.50%
Return on average assets (core)(1) 1.36%  1.36%  1.27%  1.54%  1.55%  1.33%  1.65%
Return on average equity (core)(1) 10.90%  10.89%  10.09%  12.24%  12.41%  10.63%  13.32%
Tax-equivalent net interest margin 3.54%  3.55%  3.75%  3.79%  3.69%  3.61%  3.81%
Efficiency ratio(1) 60.19%  60.23%  60.26%  60.35%  58.75%  60.23%  56.12%
Share Data             
Closing share price$36.51  $37.32  $36.13  $34.40  $46.90     
Book value per common share$29.86  $29.31  $28.52  $28.01  $27.18     
Tangible book value per common share$19.75  $19.16  $18.34  $17.75  $16.95     
Price / book value 122.27%  127.33%  126.68%  122.81%  172.55%    
Price / tangible book value 184.86%  194.78%  197.00%  193.80%  276.70%    
Weighted average diluted shares outstanding 20,208,630   20,244,409   20,271,661   20,321,283   20,438,376   20,236,331   20,444,075 
Shares outstanding, end of period 20,124,193   20,131,854   20,167,729   20,163,816   20,291,416     
Wealth Management Information:             
Wealth assets under mgmt, administration, supervision and brokerage (2)$15,609,786  $14,815,298  $14,736,512  $13,429,544  $13,913,265     
Fees for wealth management services$10,826  $11,510  $10,392  $11,017  $10,343     
Capital Ratios(3)             
Bryn Mawr Trust Company ("BMTC")             
Tier I capital to risk weighted assets ("RWA") 12.16%  11.83%  11.30%  11.42%  11.55%    
Total capital to RWA 12.74%  12.42%  11.87%  11.99%  12.10%    
Tier I leverage ratio 9.74%  9.61%  9.48%  9.48%  9.47%    
Tangible equity ratio (1) 9.75%  9.58%  9.34%  8.95%  9.29%    
Common equity Tier I capital to RWA 12.16%  11.83%  11.30%  11.42%  11.55%    
              
Bryn Mawr Bank Corporation ("BMBC")             
Tier I capital to RWA 11.32%  11.12%  10.72%  10.92%  10.90%    
Total capital to RWA 14.60%  14.44%  14.00%  14.30%  14.33%    
Tier I leverage ratio 9.07%  9.04%  8.99%  9.06%  8.94%    
Tangible equity ratio (1) 8.60%  8.51%  8.35%  8.05%  8.23%    
Common equity Tier I capital to RWA 10.74%  10.54%  10.14%  10.32%  10.29%    
              
Asset Quality Indicators             
Net loan and lease charge-offs ("NCO"s)$1,324  $1,061  $2,546  $1,620  $1,378  $4,931  $3,672 
              
Nonperforming loans and leases ("NPL"s)$14,119  $12,179  $19,283  $12,820  $8,990     
Other real estate owned ("OREO") 72   155   84   417   529     
Total nonperforming assets ("NPA"s)$ 14,191  $ 12,334  $ 19,367  $ 13,237  $ 9,519     
              
Nonperforming loans and leases 30 or more days past due$4,940  $8,224  $8,489  $7,765  $4,906     
Performing loans and leases 30 to 89 days past due 5,273   9,466   6,432   5,464   9,145     
Performing loans and leases 90 or more days past due -   -   -   -   -     
Total delinquent loans and leases$ 10,213  $ 17,690  $ 14,921  $ 13,229  $ 14,051     
              
Delinquent loans and leases to total loans and leases 0.29%  0.50%  0.42%  0.39%  0.42%    
Delinquent performing loans and leases to total loans and leases 0.15%  0.27%  0.18%  0.16%  0.27%    
NCOs / average loans and leases (annualized) 0.15%  0.12%  0.30%  0.19%  0.16%  0.19%  0.15%
NPLs / total portfolio loans and leases 0.40%  0.34%  0.55%  0.37%  0.27%    
NPAs / total loans and leases and OREO 0.40%  0.35%  0.55%  0.39%  0.28%    
NPAs / total assets 0.29%  0.26%  0.42%  0.28%  0.22%    
ALLL / NPLs 147.16%  173.92%  106.91%  151.53%  207.83%    
ALLL / portfolio loans 0.59%  0.60%  0.59%  0.57%  0.55%    
ALLL for originated loans and leases / Originated loans and leases (1) 0.66%  0.68%  0.68%  0.67%  0.68%    
(Total ALLL + Loan mark) / Total Gross portfolio loans and leases (1) 0.92%  1.00%  1.03%  1.08%  1.28%    
              
Troubled debt restructurings ("TDR"s) included in NPLs$5,755  $4,190  $4,057  $1,217  $1,208     
TDRs in compliance with modified terms 5,069   5,141   5,149   9,745   4,316     
Total TDRs$ 10,824  $ 9,331  $ 9,206  $ 10,962  $ 5,524     
              
(1) Non-GAAP measure - see Appendix for Non-GAAP to GAAP reconciliation. 
(2) Brokerage assets represent assets held at a registered broker dealer under a clearing agreement.
(3) Capital Ratios for the current quarter are to be considered preliminary until the Call Reports are filed.
              


          
Bryn Mawr Bank Corporation 
Detailed Balance Sheets (unaudited) 
(dollars in thousands) 
          
 September 30,
2019
 June 30,
2019
 March 31,
2019
 December 31,
2018
 September 30,
2018
Assets         
Cash and due from banks$8,582  $13,742  $13,656  $14,099  $10,121 
Interest-bearing deposits with banks 86,158   49,643   29,449   34,357   35,233 
Cash and cash equivalents 94,740   63,385   43,105   48,456   45,354 
Investment securities, available for sale 604,181   588,119   559,983   737,442   528,064 
Investment securities, held to maturity 12,947   10,209   10,457   8,684   8,916 
Investment securities, trading 8,324   8,516   8,189   7,502   8,340 
Loans held for sale 5,767   6,333   2,884   1,749   4,111 
Portfolio loans and leases, originated 3,137,769   3,088,849   3,032,270   2,885,251   2,752,160 
Portfolio loans and leases, acquired 402,978   445,816   491,244   541,903   629,315 
Total portfolio loans and leases 3,540,747   3,534,665   3,523,514   3,427,154   3,381,475 
Less: Allowance for losses on originated loan and leases (20,675)  (21,076)  (20,519)  (19,329)  (18,612)
Less: Allowance for losses on acquired loan and leases (102)  (106)  (97)  (97)  (72)
Total allowance for loan and lease losses (20,777)  (21,182)  (20,616)  (19,426)  (18,684)
Net portfolio loans and leases 3,519,970   3,513,483   3,502,898   3,407,728   3,362,791 
Premises and equipment 66,439   68,092   67,279   65,648   63,281 
Operating lease right-of-use assets 42,200   43,116   43,985   -   - 
Accrued interest receivable 12,746   13,312   13,123   12,585   13,232 
Mortgage servicing rights 4,580   4,744   4,910   5,047   5,328 
Bank owned life insurance 58,749   58,437   58,138   57,844   57,543 
Federal Home Loan Bank ("FHLB") stock 16,148   14,677   10,526   14,530   14,678 
Goodwill 184,012   184,012   184,012   184,012   183,864 
Intangible assets 20,084   21,038   21,994   23,455   24,301 
Other investments 16,683   16,517   16,526   16,526   16,529 
Other assets 161,071   122,575   83,984   61,277   52,110 
Total assets$4,828,641  $4,736,565  $4,631,993  $4,652,485  $4,388,442 
          
Liabilities         
Deposits         
Noninterest-bearing$904,409  $940,911  $882,310  $901,619  $834,363 
Interest-bearing 2,794,079   2,691,502   2,755,307   2,697,468   2,522,863 
Total deposits 3,698,488   3,632,413   3,637,617   3,599,087   3,357,226 
Short-term borrowings 203,471   207,828   124,214   252,367   226,498 
Long-term FHLB advances 44,735   47,941   55,407   55,374   72,841 
Subordinated notes 98,660   98,616   98,571   98,526   98,482 
Jr. subordinated debentures 21,709   21,665   21,622   21,580   21,538 
Operating lease liabilities 46,506   47,393   48,224   -   - 
Accrued interest payable 9,015   8,244   8,674   6,652   7,193 
Other liabilities 105,122   82,310   62,557   54,195   53,239 
Total liabilities 4,227,706   4,146,410   4,056,886   4,087,781   3,837,017 
          
Shareholders' equity         
Common stock 24,646   24,583   24,577   24,545   24,533 
Paid-in capital in excess of par value 377,806   376,652   375,655   374,010   373,205 
Less: common stock held in treasury, at cost (81,089)  (78,583)  (76,974)  (75,883)  (70,437)
Accumulated other comprehensive income (loss), net of tax 2,698   1,700   (3,278)  (7,513)  (13,402)
Retained earnings 277,568   266,496   255,813   250,230   238,204 
Total Bryn Mawr Bank Corporation shareholders' equity 601,629   590,848   575,793   565,389   552,103 
Noncontrolling interest (694)  (693)  (686)  (685)  (678)
Total shareholders' equity 600,935   590,155   575,107   564,704   551,425 
Total liabilities and shareholders' equity$4,828,641  $4,736,565  $4,631,993  $4,652,485  $4,388,442 
          



          
Bryn Mawr Bank Corporation 
Supplemental Balance Sheet Information (unaudited) 
(dollars in thousands) 
          
 Portfolio Loans and Leases as of
 September 30,
2019
 June 30,
2019
 March 31,
2019
 December 31,
2018
 September 30,
2018
Commercial mortgages$1,762,382  $1,755,798  $1,746,695  $1,657,436  $1,618,493 
Home equity loans and lines 198,030   203,852   204,791   207,351   207,806 
Residential mortgages 505,304   506,093   502,379   494,355   467,402 
Construction 151,593   152,554   159,761   181,078   178,493 
Total real estate loans 2,617,309   2,618,297   2,613,626   2,540,220   2,472,194 
Commercial & Industrial 709,808   704,167   705,701   695,584   722,999 
Consumer 50,481   49,335   47,821   46,814   47,809 
Leases 163,149   162,866   156,366   144,536   138,473 
Total non-real estate loans and leases 923,438   916,368   909,888   886,934   909,281 
Total portfolio loans and leases$3,540,747  $3,534,665  $3,523,514  $3,427,154  $3,381,475 
          
          
 Nonperforming Loans and Leases as of
 September 30,
2019
 June 30,
2019
 March 31,
2019
 December 31,
2018
 September 30,
2018
Commercial mortgages$7,819  $6,072  $5,558  $2,568  $735 
Home equity loans and lines 790   49   6,904   3,616   1,933 
Residential mortgages 301   701   2,863   3,452   2,770 
Construction -   -   -   -   291 
Total nonperforming real estate loans 8,910   6,822   15,325   9,636   5,729 
Commercial & Industrial 4,141   4,495   2,965   2,101   1,782 
Consumer 75   60   80   108   117 
Leases 993   802   913   975   1,362 
Total nonperforming non-real estate loans and leases 5,209   5,357   3,958   3,184   3,261 
Total nonperforming portfolio loans and leases$14,119  $12,179  $19,283  $12,820  $8,990 
          
          
 Net Loan and Lease Charge-Offs (Recoveries) for the Three Months Ended
 September 30,
2019
 June 30,
2019
 March 31,
2019
 December 31,
2018
 September 30,
2018
Commercial mortgage$656  $(3) $1,373  $249  $56 
Home equity loans and lines (22)  180   46   107   - 
Residential (7)  339   329   304   (12)
Construction (1)  (1)  (1)  -   - 
Total net charge-offs of real estate loans 626   515   1,747   660   44 
Commercial & Industrial 8   (18)  391   298   304 
Consumer 181   119   94   147   71 
Leases 509   445   314   515   959 
Total net charge-offs of non-real estate loans and leases 698   546   799   960   1,334 
Total net charge-offs$1,324  $1,061  $2,546  $1,620  $1,378 
          



          
Bryn Mawr Bank Corporation 
Supplemental Balance Sheet Information (unaudited) 
(dollars in thousands) 
 
 Investment Securities Available for Sale, at Fair Value
 September 30,
2019
 June 30,
2019
 March 31,
2019
 December 31,
2018
 September 30,
2018
U.S. Treasury securities$101  $101  $100  $200,013  $100 
Obligations of the U.S. Government and agencies 172,753   192,799   186,746   195,855   190,453 
State & political subdivisions - tax-free 6,327   6,700   8,468   11,162   15,629 
State & political subdivisions - taxable -   170   170   170   170 
Mortgage-backed securities 388,891   348,975   322,913   289,890   284,421 
Collateralized mortgage obligations 35,459   38,724   40,486   39,252   36,193 
Other debt securities 650   650   1,100   1,100   1,098 
Total investment securities available for sale, at fair value$604,181  $588,119  $559,983  $737,442  $528,064 
          
          
 Unrealized Gain (Loss) on Investment Securities Available for Sale
 September 30,
2019
 June 30,
2019
 March 31,
2019
 December 31,
2018
 September 30,
2018
U.S. Treasury securities$1  $1  $-  $(13) $- 
Obligations of the U.S. Government and agencies 188   275   (1,334)  (2,749)  (5,881)
State & political subdivisions - tax-free 8   8   (5)  (39)  (90)
State & political subdivisions - taxable -   -   -   (1)  (1)
Mortgage-backed securities 4,605   3,364   (696)  (4,186)  (7,584)
Collateralized mortgage obligations 180   89   (510)  (898)  (1,618)
Other debt securities -   -   -   -   (2)
Total unrealized gains (losses) on investment securities available for sale$4,982  $3,737  $(2,545) $(7,886) $(15,176)
          
          
 Deposits
 September 30,
2019
 June 30,
2019
 March 31,
2019
 December 31,
2018
 September 30,
2018
Interest-bearing deposits:         
Interest-bearing demand$778,809  $745,134  $664,683  $664,749  $578,243 
Money market 983,170   966,596   961,348   862,644   812,027 
Savings 248,539   263,830   265,613   247,081   286,266 
Retail time deposits 467,346   502,745   531,522   542,702   561,123 
Wholesale non-maturity deposits 274,121   100,047   47,744   55,031   24,040 
Wholesale time deposits 42,094   113,150   284,397   325,261   261,164 
Total interest-bearing deposits 2,794,079   2,691,502   2,755,307   2,697,468   2,522,863 
Noninterest-bearing deposits 904,409   940,911   882,310   901,619   834,363 
Total deposits$3,698,488  $3,632,413  $3,637,617  $3,599,087  $3,357,226 
          



              
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,
2019
 June 30,
2019
 March 31,
2019
 December 31,
2018
 September 30,
2018
 September 30,
2019
 September 30,
2018
Interest income:             
Interest and fees on loans and leases$45,527  $44,783  $44,837  $44,157  $42,103  $135,147  $124,481 
Interest on cash and cash equivalents 143   73   132   83   64   348   181 
Interest on investment securities 3,903   3,532   3,499   3,294   3,066   10,934   8,859 
Total interest income 49,573   48,388   48,468   47,534   45,233   146,429   133,521 
Interest expense:             
Interest on deposits 9,510   9,655   8,097   7,048   5,533   27,262   13,504 
Interest on short-term borrowings 937   357   943   681   1,096   2,237   2,711 
Interest on FHLB advances 243   269   278   331   394   790   1,446 
Interest on jr. subordinated debentures 340   352   358   342   337   1,050   946 
Interest on subordinated notes 1,145   1,144   1,145   1,145   1,144   3,434   3,430 
Total interest expense 12,175   11,777   10,821   9,547   8,504   34,773   22,037 
Net interest income 37,398   36,611   37,647   37,987   36,729   111,656   111,484 
Provision for loan and lease losses (the "Provision") 919   1,627   3,736   2,362   664   6,282   4,831 
Net interest income after Provision 36,479   34,984   33,911   35,625   36,065   105,374   106,653 
Noninterest income:             
Fees for wealth management services 10,826   11,510   10,392   11,017   10,343   32,728   31,309 
Insurance commissions 1,842   1,697   1,672   1,459   1,754   5,211   5,349 
Capital markets revenue 2,113   1,489   2,219   1,367   710   5,821   3,481 
Service charges on deposits 856   852   808   798   726   2,516   2,191 
Loan servicing and other fees 555   553   609   539   559   1,717   1,720 
Net gain on sale of loans 674   752   319   1,606   631   1,745   1,677 
Net gain on sale of investment securities available for sale -   -   -   -   -   -   7 
Net (loss) gain on sale of other real estate owned (12)  -   (24)  3   5   (36)  292 
Dividends on FHLB and FRB stocks 346   316   411   305   375   1,073   1,316 
Other operating income 2,255   3,052   2,847   1,003   3,171   8,154   10,543 
Total noninterest income 19,455   20,221   19,253   18,097   18,274   58,929   57,885 
Noninterest expense:             
Salaries and wages 17,765   17,038   20,901   17,921   16,528   55,704   48,750 
Employee benefits 3,288   3,317   4,166   2,977   3,356   10,771   9,941 
Occupancy and bank premises 3,008   3,125   3,252   3,135   2,717   9,385   8,464 
Furniture, fixtures and equipment 2,335   2,568   2,389   2,370   2,070   7,292   6,037 
Advertising 587   504   415   540   349   1,506   1,179 
Amortization of intangible assets 954   956   938   997   891   2,848   2,659 
(Recovery) impairment of mortgage servicing rights ("MSRs") (19)  10   17   101   (23)  8   (74)
Due diligence, merger-related and merger integration expenses -   -   -   -   389   -   7,761 
Professional fees 1,044   1,316   1,320   1,526   997   3,680   2,677 
Pennsylvania bank shares tax 514   513   409   374   472   1,436   1,418 
Data processing 1,377   1,303   1,320   1,340   1,155   4,000   3,602 
Other operating expenses 4,320   4,538   4,597   3,564   4,691   13,455   13,044 
Total noninterest expense 35,173   35,188   39,724   34,845   33,592   110,085   105,458 
Income before income taxes 20,761   20,017   13,440   18,877   20,747   54,218   59,080 
Income tax expense 4,402   4,239   2,764   1,746   4,066   11,405   12,419 
Net income$16,359  $15,778  $10,676  $17,131  $16,681  $42,813  $46,661 
Net (loss) income attributable to noncontrolling interest (1)  (7)  (1)  (5)  (1)  (9)  5 
Net income attributable to Bryn Mawr Bank Corporation$16,360  $15,785  $10,677  $17,136  $16,682  $42,822  $46,656 
              
Per share data:             
Weighted average shares outstanding 20,132,117   20,144,651   20,168,498   20,225,993   20,270,706   20,148,289   20,237,757 
Dilutive common shares 76,513   99,758   103,163   95,290   167,670   88,042   206,318 
Weighted average diluted shares 20,208,630   20,244,409   20,271,661   20,321,283   20,438,376   20,236,331   20,444,075 
Basic earnings per common share$0.81  $0.78  $0.53  $0.85  $0.82  $2.13  $2.31 
Diluted earnings per common share$0.81  $0.78  $0.53  $0.84  $0.82  $2.12  $2.28 
Dividends paid or accrued per common share$0.26  $0.26  $0.25  $0.25  $0.25  $0.77  $0.69 
Effective tax rate 21.20%  21.18%  20.57%  9.25%  19.60%  21.04%  21.02%
                            



                        
Bryn Mawr Bank Corporation 
Tax-Equivalent Net Interest Margin (unaudited)
(dollars in thousands)
                        
  For the Three Months Ended For the Nine Months Ended
  September 30, 2019June 30, 2019March 31, 2019December 31, 2018September 30, 2018 September 30, 2019September 30, 2018
  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 $48,597 $143 1.17%$37,843 $73 0.77%$32,742 $132 1.64%$38,957 $83 0.85%$37,467 $64 0.68% $39,785 $348 1.17%$37,573 $181 0.64%
Investment securities - available for sale:                       
Taxable  594,975  3,765 2.51% 560,999  3,400 2.43% 543,687  3,363 2.51% 524,117  3,075 2.33% 514,360  2,910 2.24%  566,742  10,528 2.48% 509,405  8,382 2.20%
Tax-exempt  6,594  36 2.17% 7,530  43 2.29% 9,795  55 2.28% 13,184  70 2.11% 16,056  83 2.05%  7,961  134 2.25% 18,241  276 2.02%
Total investment securities - available for sale  601,569  3,801 2.51% 568,529  3,443 2.43% 553,482  3,418 2.50% 537,301  3,145 2.32% 530,416  2,993 2.24%  574,703  10,662 2.48% 527,646  8,658 2.19%
                        
Investment securities - held to maturity  12,360  80 2.57% 10,417  71 2.73% 8,804  67 3.09% 8,761  63 2.85% 8,378  55 2.60%  10,540  218 2.77% 8,054  171 2.84%
Investment securities - trading  8,407  27 1.27% 8,572  24 1.12% 7,629  22 1.17% 8,203  96 4.64% 8,204  30 1.45%  8,206  73 1.19% 8,248  73 1.18%
                        
Loans and leases *  3,532,923  45,642 5.13% 3,524,219  44,903 5.11% 3,477,739  44,958 5.24% 3,399,484  44,274 5.17% 3,379,699  42,214 4.96%  3,511,829  135,503 5.16% 3,341,741  124,750 4.99%
                        
Total interest-earning assets  4,203,856  49,693 4.69% 4,149,580  48,514 4.69% 4,080,396  48,597 4.83% 3,992,706  47,661 4.74% 3,964,164  45,356 4.54%  4,145,063  146,804 4.74% 3,923,262  133,833 4.56%
                        
Cash and due from banks  12,890    13,725    14,414    13,962    7,587     13,671    8,468   
Less: allowance for loan and lease losses  (21,438)   (20,844)   (19,887)   (18,625)   (19,467)    (20,729)   (18,386)  
Other assets  564,766    509,164    470,206    424,957    423,864     515,059    418,261   
                        
Total assets $4,760,074   $4,651,625   $4,545,129   $4,413,000   $4,376,148    $4,653,064   $4,331,605   
                        
Liabilities:                       
                        
Interest-bearing deposits:                       
Savings, NOW and market rate deposits $1,996,181 $5,445 1.08%$1,928,755 $5,040 1.05%$1,798,103 $3,764 0.85%$1,704,065 $2,883 0.67%$1,695,214 $2,425 0.57% $1,908,405 $14,249 1.00%$1,719,004 $5,977 0.46%
Wholesale deposits  299,309  1,729 2.29% 345,782  2,143 2.49% 342,696  2,012 2.38% 346,134  1,986 2.28% 256,347  1,329 2.06%  329,103  5,884 2.39% 221,073  3,035 1.84%
Retail time deposits  480,736  2,336 1.93% 520,317  2,472 1.91% 533,395  2,321 1.76% 552,213  2,179 1.57% 541,652  1,779 1.30%  511,290  7,129 1.86% 534,177  4,492 1.12%
Total interest-bearing deposits  2,776,226  9,510 1.36% 2,794,854  9,655 1.39% 2,674,194  8,097 1.23% 2,602,412  7,048 1.07% 2,493,213  5,533 0.88%  2,748,798  27,262 1.33% 2,474,254  13,504 0.73%
                        
Borrowings:                       
Short-term borrowings  169,985  937 2.19% 68,529  357 2.09% 157,652  943 2.43% 128,429  681 2.10% 208,201  1,096 2.09%  132,100  2,237 2.26% 195,483  2,711 1.85%
Long-term FHLB advances  45,698  243 2.11% 52,397  269 2.06% 55,385  278 2.04% 67,363  331 1.95% 81,460  394 1.92%  51,125  790 2.07% 102,312  1,446 1.89%
Subordinated notes  98,634  1,145 4.61% 98,587  1,144 4.65% 98,542  1,145 4.71% 98,497  1,145 4.61% 98,457  1,144 4.61%  98,588  3,434 4.66% 98,450  3,430 4.66%
Jr. subordinated debt  21,680  340 6.22% 21,637  352 6.53% 21,595  358 6.72% 21,553  342 6.30% 21,511  337 6.22%  21,638  1,050 6.49% 21,470  946 5.89%
Total borrowings  335,997  2,665 3.15% 241,150  2,122 3.53% 333,174  2,724 3.32% 315,842  2,499 3.14% 409,629  2,971 2.88%  303,451  7,511 3.31% 417,715  8,533 2.73%
                        
Total interest-bearing liabilities  3,112,223  12,175 1.55% 3,036,004  11,777 1.56% 3,007,368  10,821 1.46% 2,918,254  9,547 1.30% 2,902,842  8,504 1.16%  3,052,249  34,773 1.52% 2,891,969  22,037 1.02%
                        
Noninterest-bearing deposits  903,314    909,945    871,726    878,047    866,314     895,111    849,247   
Other liabilities  149,226    124,211    93,949    60,393    59,085     122,665    53,763   
Total noninterest-bearing liabilities  1,052,540    1,034,156    965,675    938,440    925,399     1,017,776    903,010   
                        
Total liabilities  4,164,763    4,070,160    3,973,043    3,856,694    3,828,241     4,070,025    3,794,979   
                        
Shareholders' equity  595,311    581,465    572,086    556,306    547,907     583,039    536,626   
                        
Total liabilities and shareholders' equity $4,760,074   $4,651,625   $4,545,129   $4,413,000   $4,376,148    $4,653,064   $4,331,605   
                        
Net interest spread   3.14%  3.13%  3.37%  3.44%  3.38%   3.22%  3.54%
Effect of noninterest-bearing sources   0.40%  0.42%  0.38%  0.35%  0.31%   0.39%  0.27%
                        
Tax-equivalent net interest margin  $37,518 3.54% $36,737 3.55% $37,776 3.75% $38,114 3.79% $36,852 3.69%  $112,031 3.61% $111,796 3.81%
                        
Tax-equivalent adjustment  $120 0.01% $126 0.01% $129 0.01% $127 0.01% $123 0.01%  $375 0.01% $312 0.01%
* 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. 
                        
Supplemental Information Regarding Accretion of Fair Value Marks
 
                        
(dollars in thousands)  InterestIncrease (Decrease)Effect on Yield or RateInterestIncrease (Decrease)Effect on Yield or RateInterestIncrease (Decrease)Effect on Yield or RateInterestIncrease (Decrease)Effect on Yield or Rate Increase (Decrease)Effect on Yield or Rate  Increase (Decrease)Effect on Yield or Rate Increase (Decrease)Effect on Yield or Rate
Loans and leases Income$1,501 0.17% $1,193 0.14% $1,997 0.23% $2,492 0.29% $1,464 0.17%  $4,691 0.18% $6,111 0.24%
Retail time deposits Expense (151)(0.12)%  (171)(0.13)%  (222)(0.17)%  (279)(0.20)%  (311)(0.23)%   (544)(0.14)%  (1,030)0.26)%
Long-term FHLB advances Expense 34 0.30%  34 0.26%  33 0.24%  34 0.20%  32 0.16%   101 0.26%  72 0.09%
Jr. subordinated debt Expense 44 0.81%  43 0.80%  42 0.79%  42 0.77%  41 0.76%   129 0.80%  122 0.76%
Net interest income from fair value marks  $1,574   $1,287   $2,144   $2,695   $1,702    $5,005   $6,947  
Purchase accounting effect on tax-equivalent margin  0.15%  0.12%  0.21%  0.27%  0.17%   0.16%  0.24%
                        



              
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,
2019
 June 30,
2019
 March 31,
2019
 December 31,
2018
 September 30,
2018
 September 30,
2019
 September 30,
2018
Reconciliation of Net Income to Net Income (core):             
Net income attributable to BMBC (a GAAP measure)$16,360  $15,785  $10,677  $17,136  $16,682  $42,822  $46,656 
Less: Tax-effected non-core noninterest income:             
Gain on sale of investment securities available for sale -   -   -   -   -   -   (6)
Add: Tax-effected non-core noninterest expense items:             
Due diligence, merger-related and merger integration expenses -   -   -   -   307   -   6,131 
Voluntary years of service incentive program expenses -   -   3,553   -   -   3,553   - 
Add: Federal income tax expense related to re-measurement of net deferred tax asset due to tax reform legislation -   -   -   31   151   -   672 
Net income (core) (a non-GAAP measure)$ 16,360  $ 15,785  $ 14,230  $ 17,167  $ 17,140  $ 46,375  $ 53,453 
              
Calculation of Basic and Diluted Earnings per Common Share (core):             
Weighted average common shares outstanding 20,132,117   20,144,651   20,168,498   20,225,993   20,270,706   20,148,289   20,237,757 
Dilutive common shares 76,513   99,758   103,163   95,290   167,670   88,042   206,318 
Weighted average diluted shares 20,208,630   20,244,409   20,271,661   20,321,283   20,438,376   20,236,331   20,444,075 
Basic earnings per common share (core) (a non-GAAP measure)$0.81  $0.78  $0.71  $0.85  $0.85  $2.30  $2.64 
Diluted earnings per common share (core) (a non-GAAP measure)$0.81  $0.78  $0.70  $0.84  $0.84  $2.29  $2.61 
              
Calculation of Return on Average Tangible Equity:             
Net income attributable to BMBC (a GAAP measure)$16,360  $15,785  $10,677  $17,136  $16,682  $42,822  $46,656 
Add: Tax-effected amortization and impairment of intangible assets 754   755   741   787   705   2,250   2,101 
Net tangible income (numerator)$17,114  $16,540  $11,418  $17,923  $17,387  $45,072  $48,757 
              
Average shareholders' equity$595,311  $581,465  $572,086  $556,306  $547,907  $583,039  $536,626 
Less: Average Noncontrolling interest 693   688   685   681   678   689   684 
Less: Average goodwill and intangible assets (204,637)  (205,593)  (206,716)  (207,893)  (207,880)  (205,641)  (207,158)
Net average tangible equity (denominator)$391,367  $376,560  $366,055  $349,094  $340,705  $378,087  $330,152 
              
Return on tangible equity (a non-GAAP measure) 17.35%  17.62%  12.65%  20.37%  20.25%  15.94%  19.74%
              
Calculation of Return on Average Tangible Equity (core):             
Net income (core) (a non-GAAP measure)$16,360  $15,785  $14,230  $17,167  $17,140  $46,375  $53,453 
Add: Tax-effected amortization and impairment of intangible assets 754   755   741   787   705   2,250   2,101 
Net tangible income (core) (numerator)$17,114  $16,540  $14,971  $17,954  $17,845  $48,625  $55,554 
              
Average shareholders' equity$595,311  $581,465  $572,086  $556,306  $547,907  $583,039  $536,626 
Less: Average Noncontrolling interest 693   688   685   681   678   689   684 
Less: Average goodwill and intangible assets (204,637)  (205,593)  (206,716)  (207,893)  (207,880)  (205,641)  (207,158)
Net average tangible equity (denominator)$391,367  $376,560  $366,055  $349,094  $340,705  $378,087  $330,152 
              
Return on tangible equity (core) (a non-GAAP measure) 17.35%  17.62%  16.59%  20.40%  20.78%  17.19%  22.50%
              
Calculation of Tangible Equity Ratio (BMBC):             
Total shareholders' equity$600,935  $590,155  $575,107  $564,704  $551,425     
Less: Noncontrolling interest 694   693   686   685   678     
Less: Goodwill and intangible assets (204,096)  (205,050)  (206,006)  (207,467)  (208,165)    
Net tangible equity (numerator)$397,533  $385,798  $369,787  $357,922  $343,938     
              
Total assets$4,828,641  $4,736,565  $4,631,993  $4,652,485  $4,388,442     
Less: Goodwill and intangible assets (204,096)  (205,050)  (206,006)  (207,467)  (208,165)    
Tangible assets (denominator)$4,624,545  $4,531,515  $4,425,987  $4,445,018  $4,180,277     
              
Tangible equity ratio (BMBC)(1) 8.60%  8.51%  8.35%  8.05%  8.23%    
              
Calculation of Tangible Equity Ratio (BMTC):             
Total shareholders' equity$641,565  $625,464  $605,985  $591,695  $582,698     
Less: Noncontrolling interest 694   693   686   685   678     
Less: Goodwill and intangible assets (191,572)  (192,450)  (193,329)  (194,715)  (195,337)    
Net tangible equity (numerator)$450,687  $433,707  $413,342  $397,665  $388,039     
              
Total assets$4,813,704  $4,721,394  $4,616,724  $4,637,481  $4,372,590     
Less: Goodwill and intangible assets (191,572)  (192,450)  (193,329)  (194,715)  (195,337)    
Tangible assets (denominator)$4,622,132  $4,528,944  $4,423,395  $4,442,766  $4,177,253     
              
Tangible equity ratio (BMTC)(1) 9.75%  9.58%  9.34%  8.95%  9.29%    
              
Calculation of Return on Average Assets (core)             
Return on average assets (GAAP) 1.36%  1.36%  0.95%  1.54%  1.51%  1.23%  1.44%
Effect of adjustment to GAAP net income to core net income 0.00%  0.00%  0.32%  0.00%  0.04%  0.10%  0.21%
Return on average assets (core) 1.36%  1.36%  1.27%  1.54%  1.55%  1.33%  1.65%
              
Calculation of Return on Average Equity (core)             
Return on average equity (GAAP) 10.90%  10.89%  7.57%  12.22%  12.08%  9.82%  11.62%
Effect of adjustment to GAAP net income to core net income 0.00%  0.00%  2.52%  0.02%  0.33%  0.81%  1.70%
Return on average equity (core) 10.90%  10.89%  10.09%  12.24%  12.41%  10.63%  13.32%
              
Calculation of Tax-equivalent net interest margin adjusting for the impact of purchase accounting:             
Tax-equivalent net interest margin 3.54%  3.55%  3.75%  3.79%  3.69%  3.61%  3.81%
Effect of fair value marks 0.15