BRYN MAWR BANK CORP - FORM 8-K - EX-99.1 - EXHIBIT 99.1

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8-K - FORM 8-K - BRYN MAWR BANK CORP	bmtc20161020_8k.htm

Exhibit 99.1

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

Bryn Mawr Bank Corporation Reports Record Third Quarter

Net Income of $9.4 Million, Strong Loan Growth Continues,

Wealth Assets Approach $10 Billion

BRYN MAWR, Pa., October 20, 2016 - Bryn Mawr Bank Corporation (NASDAQ: BMTC) (the “Corporation”), parent of The Bryn Mawr Trust Company (the “Bank”), today reported net income of $9.4 million and diluted earnings per share of $0.55 for the three months ended September 30, 2016, as compared to $8.9 million, or $0.52 diluted earnings per share for the three months ended June 30, 2016 and $7.5 million, or $0.42 diluted earnings per share, for the three months ended September 30, 2015.

On a non-GAAP basis, core net income, which excludes certain non-core income and expense items, as detailed in the appendix to this earnings release, was also $9.4 million, or $0.55 diluted earnings per share for the three months ended September 30, 2016 as compared to $9.0 million, or $0.53 diluted earnings per share for the three months ended June 30, 2016 and $8.2 million, or $0.46 diluted earnings per share for the three months ended September 30, 2015. Management believes the core net income measure is important in evaluating the Corporation’s performance on a more comparable basis between periods. A reconciliation of this and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release.

“As we progress through 2016, with the backdrop of a sluggish economy and sustained low-interest rate environment, the Bank continues to perform well,” commented Frank Leto, President and Chief Executive Officer, continuing, “Despite this challenging backdrop, loan growth was strong during the third quarter, helping to offset a lower net interest margin.” Mr. Leto added, “During the first three quarters of this year, in addition to the near ten percent growth of our loan portfolio, we also saw an increase in our wealth assets of close to 20 percent. Both of these trends signal a promising outlook for the remainder of 2016, and we hope to carry this momentum into 2017.”

Mr. Leto also noted, “In addition to these promising trends, we’re also very excited about the successes of several of the strategic initiatives we began last year. Our mortgage banking operation, which began ramping up toward the end of 2014, is now in full swing, with loan volumes up 14.9% for the first nine months of this year compared to the same period last year. Our new loan production office, located in Hershey, Pennsylvania, which has been able to leverage the wealth management relationships we’ve developed there since the 2011 Hershey merger, has seen a ten-fold increase in outstanding balances from $5.2 million as of September 30, 2015 to $52.2 million as of September 30, 2016. And lastly, our non-traditional commercial mortgage subsidiary, headquartered in Media, Pennsylvania, which began operations on October 1, 2015, is progressing well. With outstanding balances as of September 30, 2016 of $19.5 million, from clients in eleven states, we are confident that this specialized arm of the Bank will continue to flourish and produce positive results to our bottom line.”

On October 20, 2016, the Board of Directors of the Corporation declared a quarterly dividend of $0.21 per share, payable December 1, 2016 to shareholders of record as of November 2, 2016.

SIGNIFICANT ITEMS OF NOTE

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

●

Net income for the three months ended September 30, 2016 was $9.4 million, as compared to $8.9 million for the three months ended June 30, 2016. Largely accounting for the increase in net income was a $570 thousand decrease in impairment of mortgage servicing rights (“MSR”s), a $576 thousand decrease in salaries and wages, a $311 thousand increase in other operating income and a $464 thousand decrease in income tax expense. These improvements were partially offset by a $967 thousand increase in provision for loan and lease losses (the “Provision”), a $331 thousand decrease in fees for wealth management services and a $463 thousand increase in other operating expense.

●

Net interest income for the three months ended September 30, 2016 was $26.7 million, an increase of $90 thousand from $26.6 million for the three months ended June 30, 2016. Average loans and leases for the three months ended September 30, 2016 increased by $64.3 million from the three months ended June 30, 2016, however, the tax-equivalent yield earned on loans decreased by 13 basis points over the same period.

●

The tax-equivalent net interest margin of 3.71% for the third quarter of 2016 decreased 10 basis points from 3.81% for the second quarter of 2016. The decrease was primarily the result of a 13 basis point decrease in tax-equivalent yield earned on loans, coupled with a 3 basis point increase in tax-equivalent rate paid on deposits, partially offset by a 2 basis point decrease in rate paid on borrowings. The contribution of fair value mark accretion to the tax-equivalent net interest margin accounted for 9 basis points of the margin for the third quarter of 2016 as compared to 17 basis points for the second quarter of 2016.

●

Non-interest income for the three months ended September 30, 2016 increased $72 thousand from the second quarter of 2016. The relatively small increase was related to increases of $311 thousand and $89 thousand in other operating income and gain on sale of loans, respectively, which were offset by a decrease of $331 thousand in fees for wealth management services. The increase in other operating income was largely related to the $237 thousand income recognized as the result of the early pay-off, in full, of a purchased credit-impaired loan which had been discounted at acquisition. The decrease in fees for wealth management services was primarily related to fees for tax services billed in the second quarter of 2016 which did not reoccur in the third quarter.

●

Non-interest expense for the three months ended September 30, 2016 decreased $782 thousand, to $25.5 million, as compared to $26.3 million for the second quarter of 2016. The primary contributors to the decrease in noninterest expense during the third quarter were decreases of $576 thousand in salaries and wages, related to reductions in variable compensation accruals, and a decrease of $570 thousand in impairment of MSRs, whose values have stabilized since the impairment recorded in the second quarter of 2016. These decreases in noninterest expense were offset by a $463 thousand increase in other operating expenses, which was largely related to changes in value of deferred compensation liability accounts.

●

For the three months ended September 30, 2016, net loan and lease charge-offs totaled $704 thousand, as compared to $254 thousand for the second quarter of 2016. The Provision for the three months ended September 30, 2016 was $1.4 million, as compared to $445 thousand for the second quarter of 2016. The increased loan volume, along with the increased net charge-offs, necessitated the $967 thousand increase in Provision to bring the allowance for loan and lease losses (the “Allowance”) to the appropriate level.

●

Income tax expense for the third quarter of 2016 decreased by $464 thousand as compared to the second quarter of 2016. The reduction in the income tax rate from 35.1% to 31.7% from the second to third quarter of 2016 was the result of the early adoption of FASB Accounting Standards Update (ASU) 2016-09, “Improvements to Employee Share-Based Payment Accounting”. ASU 2016-09 was adopted using a modified retrospective approach, in which the excess tax benefits related to the vesting of employee stock-based compensation are recorded through earnings in the 2016 period in which they occurred. Accordingly, the excess tax benefits recognized in earnings for the first, second and third quarter of 2016 were $47 thousand, $13 thousand and $385 thousand, respectively. The amounts shown in the first and second quarter income statements and balance sheets in the schedules accompanying this earnings release have been adjusted from the amounts previously reported in the earnings releases for first and second quarters of 2016. Prior to the adoption of ASU 2016-09, excess tax benefits associated with employee stock-based compensation were recorded directly to equity, as a component of additional paid-in capital (“APIC”). Accumulated excess tax benefit recorded in APIC for periods prior to 2016 has been reclassified to retained earnings as of January 1, 2016.

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

●

Net income for the three months ended September 30, 2016 was $9.4 million, or $0.55 diluted earnings per share, as compared to $7.5 million, or $0.42 diluted earnings per share for the same period in 2015. Contributing to the increase in net income was a $1.9 million increase in net interest income, a $1.0 million reduction in due diligence, merger-related and merger integration costs, and a $300 thousand increase in gain on sale of loans. Partially offsetting these improvements was a $646 thousand increase in other operating expense, a $680 thousand increase in salaries and wages and a $242 thousand increase in Pennsylvania bank shares tax. In addition to the effect of the increased net income, the $0.13 increase in diluted earnings per share was also impacted by the 456,300 shares of Corporation stock repurchased between September 30, 2015 and September 30, 2016 under the stock repurchase program announced on August 6, 2015.

●

Net interest income for the three months ended September 30, 2016 was $26.7 million, an increase of $1.9 million, or 7.6%, from $24.8 million for the same period in 2015. The increase in net interest income was primarily related to the growth in average loan balances between the periods. Average loans and leases for the three months ended September 30, 2016 increased by $285.3 million from the same period in 2015. The increase in average loan balances was offset by a 15 basis point decrease in tax-equivalent yield earned on loans and leases. The net effect of the yield decrease and volume increase on average loans and leases was a $2.3 million increase in tax-equivalent interest income on loans. Partially offsetting the increase in average loans was an $84.7 million increase in average interest-bearing deposits accompanied by a 10 basis point increase in rate paid on deposits.

●

The tax-equivalent net interest margin of 3.71% for the three months ended September 30, 2016 was a 6 basis point increase from the same period in 2015. The primary reason for the improvement in the margin was the shift in earning assets from low-yielding interest-earning deposits with banks, to much higher yielding loans and investment securities.

●

Non-interest income for the three months ended September 30, 2016 increased $542 thousand as compared to the same period in 2015. Contributing to this increase was a $397 thousand increase in other operating income, partially related to the $504 thousand income recognized on deferred compensation trusts, $237 thousand resulting from the pay-off, in full, of a purchased credit-impaired loan which had been recorded at a discount and a $300 thousand increase in gain on sale of loans. Partially offsetting these increases was a $179 thousand decrease in insurance revenues between periods.

●

Non-interest expense for the three months ended September 30, 2016 increased $74 thousand, as compared to the same period in 2015. Increases in salaries and wages and other operating expenses of $680 thousand and $646 thousand, respectively, were partially offset by a decrease of $1.0 million in due diligence, merger-related and merger integration expenses. The increase in salaries and wages was related to annual salary increases, new staff additions, and increases in incentive compensation. The increase in other operating expenses was primarily related to a $576 thousand increase in the deferred compensation liability. This increase in the deferred compensation liability is offset by earnings associated with the deferred compensation trusts discussed in the non-interest income section above.

●	The Provision for the three months ended September 30, 2016 of $1.4 million was a $212 thousand increase from the same period in 2015. Net loan and lease charge-offs for the third quarter of 2016 increased by $480 thousand from the same period in 2015.

Financial Condition – September 30, 2016 Compared to December 31, 2015

●

Total portfolio loans and leases of $2.49 billion as of September 30, 2016 increased by $224.4 million, or 9.9%, from December 31, 2015. Loan growth was concentrated in the commercial mortgage, commercial and industrial, and construction categories, which increased $125.4 million, $41.0 million and $42.8 million, respectively, since December 31, 2015.

●

The Allowance as of September 30, 2016 was $17.7 million, or 0.71% of portfolio loans as compared to $15.9 million, or 0.70% of portfolio loans and leases, as of December 31, 2015. In addition to the ratio of Allowance to portfolio loans, management also calculates two non-GAAP measures: the Allowance as a percentage of originated loans and leases, which was 0.81% as of September 30, 2016, as compared to 0.84% as of December 31, 2015, and the Allowance plus the remaining loan mark as a percentage of gross loans, which was 1.24% as of September 30, 2016, as compared to 1.44% as of December 31, 2015. A reconciliation of these and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release.

●

Available for sale investment securities as of September 30, 2016 were $366.9 million, an increase of $17.9 million from December 31, 2015. Increases of $47.8 million in mortgage-related securities were partially offset by decreases of $24.9 million in U.S. government securities and $4.7 million in municipal obligations.

●	Total assets as of September 30, 2016 were $3.17 billion, an increase of $143.1 million from December 31, 2015. Increases in loans and leases and available for sale investment securities were partially offset by reductions in interest-bearing deposits with banks, which decreased by $94.5 million.

●

Wealth assets under management, administration, supervision and brokerage totaled $9.97 billion as of September 30, 2016, an increase of $1.60 billion, or 19.2%, from December 31, 2015. Despite this growth in assets, income related to these services did not grow proportionately, as a larger percentage of the portfolio was comprised of assets held in lower-yielding fixed-fee accounts. As in prior quarters, the proportion of balances in wealth accounts whose fees are tied to their asset values is decreasing relative to that of fixed-fee accounts. The growth in balances in the market-based accounts, which has resulted from solid new business development and strong account retention, was offset by the normal attrition of funds from these accounts, primarily through beneficiary spending. Additionally, much of the growth in wealth assets during the third quarter of 2016 was experienced in September and, as such, has not impacted the fee revenue line since account billings for the prospective period are based on quarter-end asset balances.

●

Deposits of $2.48 billion as of September 30, 2016 increased $225.2 million from December 31, 2015. Noninterest-bearing deposits increased by $91.3 million, retail time deposits and savings deposits increased by $80.3 million and $41.1 million, respectively, and wholesale time deposits increased by $45.9 million. These increases were partially offset by a combined $30.4 million decrease in money market and NOW accounts.

●

The capital ratios for the Bank and the Corporation, as of September 30, 2016, as shown in the attached tables, indicate levels well above the regulatory minimum to be considered “well capitalized.” At the Bank level, all capital ratios have increased from their June 30, 2016 levels, primarily due to increases in retained earnings, other comprehensive income and the $15.0 million capital infusion received from the Corporation in the first quarter of 2016. At the Corporation level, most capital levels remain below their December 31, 2015 levels largely due to asset growth.

FORWARD LOOKING STATEMENTS AND SAFE HARBOR

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

Such forward-looking statements involve known and unknown risks and uncertainties. A number of factors, many of which are beyond the Corporation's control, could cause our actual results, events or developments, or industry results, to be materially different from any future results, events or developments expressed, implied or anticipated by such forward-looking statements, and so our business and financial condition and results of operations could be materially and adversely affected. Such factors include, among others, that the integration of acquired businesses with the Corporation’s may take longer than anticipated or be more costly to complete and that the anticipated benefits, including any anticipated cost savings or strategic gains may be significantly harder to achieve or take longer than anticipated or may not be achieved, our need for capital, our ability to control operating costs and expenses, and to manage loan and lease delinquency rates; the credit risks of lending activities and overall quality of the composition of our loan, lease and securities portfolio; the impact of economic conditions, consumer and business spending habits, and real estate market conditions on our business and in our market area; changes in the levels of general interest rates, deposit interest rates, or net interest margin and funding sources; changes in banking regulations and policies and the possibility that any banking agency approvals we might require for certain activities will not be obtained in a timely manner or at all or will be conditioned in a manner that would impair our ability to implement our business plans; changes in accounting policies and practices; the inability of key third-party providers to perform their obligations to us; our ability to attract and retain key personnel; competition in our marketplace; war or terrorist activities; material differences in the actual financial results, cost savings and revenue enhancements associated with our acquisitions; and other factors as described in our securities filings. All forward-looking statements and information set forth herein are based on management’s current beliefs and assumptions as of the date hereof and speak only as of the date they are made. The Corporation does not undertake to update forward-looking statements.

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

# # # #

Bryn Mawr Bank Corporation
Summary Financial Information (unaudited)
(dollars in thousands, except per share data)
	As of or For the Three Months Ended															For the Nine Months Ended
	September 30, 2016			June 30, 2016			March 31, 2016			December 31, 2015			September 30, 2015			September 30, 2016		September 30, 2015
Consolidated Balance Sheet (selected items)
Interest-bearing deposits with banks	$	30,118		$	20,481		$	33,954		$	124,615		$	100,980
Investment securities (AFS, HTM and Trading)		373,508			371,906			369,461			352,916			344,872
Loans held for sale		11,506			11,882			7,807			8,987			8,721
Portfolio loans and leases		2,493,357			2,423,821			2,378,841			2,268,988			2,228,764
Allowance for loan and lease losses ("ALLL")		(17,744	)		(17,036	)		(16,845	)		(15,857	)		(15,935	)
Goodwill and other intangible assets		126,000			126,888			127,777			128,668			129,694
Total assets		3,174,080			3,090,090			3,058,247			3,030,997			2,952,742
Deposits - interest-bearing		1,759,862			1,720,477			1,700,550			1,626,041			1,634,237
Deposits - non-interest-bearing		718,015			689,214			643,492			626,684			605,607
Short-term borrowings		50,065			19,119			37,010			94,167			24,264
Long-term FHLB advances and other borrowings		204,772			224,802			249,832			254,863			254,893
Subordinated notes		29,518			29,505			29,491			29,479			29,466
Total liabilities		2,795,621			2,717,623			2,693,070			2,665,286			2,584,587
Shareholders' equity		378,459			372,467			365,177			365,711			368,155

Average Balance Sheet (selected items)
Interest-bearing deposits with banks	$	33,532		$	44,950		$	39,050		$	90,832		$	165,723		$	39,157	$	184,689
Investment securities (AFS, HTM and Trading)		373,616			371,153			360,957			354,239			356,028			368,594		367,302
Loans held for sale		12,887			7,844			5,481			7,531			10,527			8,752		6,936
Portfolio loans and leases		2,464,085			2,404,799			2,303,103			2,240,189			2,181,125			2,390,931		2,124,342
Total interest-earning assets		2,884,120			2,828,746			2,708,591			2,692,791			2,713,403			2,807,434		2,683,269
Goodwill and intangible assets		126,505			127,402			128,296			129,292			130,241			127,398		127,806
Total assets		3,142,019			3,089,953			2,973,148			2,959,011			2,981,308			3,068,643		2,936,953
Deposits - interest-bearing		1,729,689			1,717,252			1,633,651			1,611,574			1,644,976			1,693,663		1,644,632
Short-term borrowings		40,966			32,328			34,158			26,092			28,166			35,836		39,352
Long-term FHLB advances and other borrowings		218,920			236,248			250,015			254,880			248,606			235,002		254,810
Subordinated notes		29,509			29,496			29,482			29,471			18,190			29,496		6,130
Total interest-bearing liabilities		2,019,084			2,015,324			1,947,306			1,922,017			1,939,938			1,993,997		1,944,924
Total liabilities		2,769,065			2,723,838			2,612,276			2,593,651			2,604,704			2,701,973		2,561,258
Shareholders' equity		372,954			366,115			360,872			365,360			376,604			366,669		375,695

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, 2016			June 30, 2016			March 31, 2016			December 31, 2015			September 30, 2015			September 30, 2016			September 30, 2015
Income Statement
Net interest income	$	26,717		$	26,627		$	25,902		$	25,429		$	24,833		$	79,246		$	74,698
Provision for loan and lease losses		1,412			445			1,410			1,777			1,200			3,267			2,619
Noninterest income		13,892			13,820			13,208			13,668			13,350			40,920			42,292
Noninterest expense		25,477			26,259			25,051			46,951			25,403			76,787			78,814
Income tax expense (benefit)		4,346			4,810			4,328			(3,276	)		4,084			13,484			12,448
Net income (loss)		9,374			8,933			8,321			(6,355	)		7,496			26,628			23,109
Basic earnings per share		0.56			0.53			0.49			(0.37	)		0.43			1.58			1.31
Diluted earnings per share		0.55			0.52			0.49			(0.37	)		0.42			1.57			1.29
Net income (core) ⁽¹⁾		9,392			8,961			8,331			7,506			8,241			26,684			26,008
Basic earnings per share (core) ⁽¹⁾		0.56			0.53			0.49			0.44			0.47			1.58			1.48
Diluted earnings per share (core) ⁽¹⁾		0.55			0.53			0.49			0.44			0.46			1.57			1.45
Cash dividends paid per share		0.21			0.20			0.20			0.20			0.20			0.61			0.58
Profitability Indicators
Return on average assets		1.19	%		1.16	%		1.13	%		-0.86	%		1.01	%		1.16	%		1.05	%
Return on average equity		10.00	%		9.81	%		9.27	%		-7.00	%		8.01	%		9.70	%		8.22	%
Return on tangible equity⁽¹⁾		16.06	%		16.02	%		15.39	%		-9.36	%		13.25	%		15.83	%		13.48	%
Tax-equivalent net interest margin		3.71	%		3.81	%		3.87	%		3.77	%		3.65	%		3.79	%		3.75	%
Efficiency ratio⁽¹⁾		60.51	%		62.66	%		61.75	%		63.09	%		60.97	%		61.64	%		60.79	%
Mortgage Banking Information
Mortgage loans originated	$	84,885		$	64,893		$	51,532		$	55,867		$	76,169		$	201,310		$	175,182
Residential mortgage loans sold - servicing retained		40,462			26,944			25,965			24,063			30,515			93,371			83,288
Residential mortgage loans sold - servicing released		10,522			5,278			2,397			7,150			10,579			18,197			22,480
Total residential mortgage loans sold	$	50,984		$	32,222		$	28,362		$	31,213		$	41,094		$	111,568		$	105,768
Residential mortgage loans serviced for others	$	618,134		$	610,418		$	605,366		$	601,939		$	601,999
Share Data
Closing share price	$	31.99		$	29.20		$	25.73		$	28.72		$	31.07
Book value per common share	$	22.08		$	21.76		$	21.48		$	21.40		$	21.94
Tangible book value per common share	$	14.94		$	14.60		$	14.13		$	13.89		$	13.89
Price / book value		144.91	%		134.19	%		119.80	%		134.19	%		141.62	%
Price / tangible book value		214.07	%		200.05	%		182.10	%		206.84	%		223.67	%
Weighted average diluted shares outstanding		17,072,358			17,027,419			16,883,364			17,129,234			17,834,298			16,994,455			17,930,420
Shares outstanding, end of period		16,893,878			16,824,564			16,801,801			17,071,523			17,166,323
Wealth Management Information:

Wealth assets under mgmt, administration, supervision and brokerage ⁽²⁾	$	9,969,745		$	9,632,521		$	9,281,743		$	8,364,805		$	8,218,276
Fees for wealth management services	$	9,100		$	9,431		$	8,832		$	8,995		$	9,194

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, 2016			June 30, 2016			March 31, 2016			December 31, 2015			September 30, 2015			September 30, 2016			September 30, 2015
Capital Ratios
Bryn Mawr Trust Company
Tier I capital to risk weighted assets ("RWA")		11.01	%		10.94	%		10.69	%		10.12	%		11.96	%
Total (Tier II) capital to RWA		11.72	%		11.65	%		11.39	%		10.78	%		12.64	%
Tier I leverage ratio		9.17	%		9.06	%		9.15	%		8.51	%		9.75	%
Tangible equity ratio ⁽¹⁾		8.86	%		8.79	%		8.53	%		7.74	%		8.84	%
Common equity Tier I capital to RWA		11.01	%		10.94	%		10.69	%		10.12	%		11.96	%

Bryn Mawr Bank Corporation
Tier I capital to RWA		10.42	%		10.45	%		10.22	%		10.72	%		11.56	%
Total (Tier II) capital to RWA		12.31	%		12.35	%		12.13	%		12.61	%		13.50	%
Tier I leverage ratio		8.69	%		8.65	%		8.76	%		9.02	%		9.44	%
Tangible equity ratio ⁽¹⁾		8.28	%		8.29	%		8.10	%		8.17	%		8.45	%
Common equity Tier I capital to RWA		10.42	%		10.45	%		10.22	%		10.72	%		11.56	%

Asset Quality Indicators

Net loan and lease charge-offs ("NCO"s)	$	704		$	254		$	422		$	1,855		$	224		$	1,380		$	1,270
Nonperforming loans and leases ("NPL"s)	$	9,883		$	9,617		$	9,636		$	10,244		$	12,315
Other real estate owned ("OREO")		867			784			756			2,638			1,010
Total nonperforming assets ("NPA"s)	$	10,750		$	10,401		$	10,392		$	12,882		$	13,325

Nonperforming loans and leases 30 or more days past due	$	4,339		$	5,599		$	6,193		$	5,678		$	8,854
Performing loans and leases 30 to 89 days past due		2,491			3,564			6,296			5,601			4,960
Performing loans and leases 90 or more days past due		-			-			-			-			-
Total delinquent loans and leases	$	6,830		$	9,163		$	12,489		$	11,279		$	13,814

Delinquent loans and leases to total loans and leases		0.27	%		0.38	%		0.52	%		0.50	%		0.62	%
Delinquent performing loans and leases to total loans and leases		0.10	%		0.15	%		0.26	%		0.25	%		0.22	%
NCOs / average loans and leases (annualized)		0.11	%		0.04	%		0.07	%		0.33	%		0.04	%		0.08	%		0.08	%
NPLs / total portfolio loans and leases		0.40	%		0.40	%		0.41	%		0.45	%		0.55	%
NPAs / total loans and leases and OREO		0.43	%		0.43	%		0.44	%		0.56	%		0.60	%
ALLL / NPLs		179.54	%		177.14	%		174.81	%		154.79	%		129.40	%
ALLL / portfolio loans		0.71	%		0.70	%		0.71	%		0.70	%		0.71	%
ALLL on originated loans and leases / Originated loans and leases⁽¹⁾		0.81	%		0.81	%		0.83	%		0.84	%		0.88	%
(Total Allowance + Loan mark) / Total Gross portfolio loans and leases ⁽¹⁾		1.24	%		1.30	%		1.37	%		1.44	%		1.52	%

Troubled debt restructurings ("TDR"s) included in NPLs	$	1,680		$	1,779		$	1,756		$	1,935		$	3,711
TDRs in compliance with modified terms		6,305			4,984			4,893			4,880			4,062
Total TDRs	$	7,985		$	6,763		$	6,649		$	6,815		$	7,773

⁽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, 2016			June 30, 2016			March 31, 2016			December 31, 2015			September 30, 2015
Assets
Cash and due from banks	$	18,905		$	13,710		$	15,594		$	18,452		$	17,161
Interest-bearing deposits with banks		30,118			20,481			33,954			124,615			100,980
Cash and cash equivalents		49,023			34,191			49,548			143,067			118,141
Investment securities, available for sale		366,910			365,470			365,819			348,966			341,421
Investment securities, held to maturity		2,896			2,915			-			-			-
Investment securities, trading		3,702			3,521			3,642			3,950			3,451
Loans held for sale		11,506			11,882			7,807			8,987			8,721
Portfolio loans and leases, originated		2,176,549			2,090,070			2,015,683			1,883,869			1,804,834
Portfolio loans and leases, acquired		316,808			333,751			363,158			385,119			423,930
Total portfolio loans and leases		2,493,357			2,423,821			2,378,841			2,268,988			2,228,764
Less: Allowance for losses on originated loan and leases		(17,716	)		(17,008	)		(16,817	)		(15,857	)		(15,900	)
Less: Allowance for losses on acquired loan and leases		(28	)		(28	)		(28	)		-			(35	)
Total allowance for loan and lease losses		(17,744	)		(17,036	)		(16,845	)		(15,857	)		(15,935	)
Net portfolio loans and leases		2,475,613			2,406,785			2,361,996			2,253,131			2,212,829
Premises and equipment		42,559			43,607			44,712			45,339			44,370
Accrued interest receivable		8,066			8,144			8,205			7,869			7,744
Mortgage servicing rights		4,793			4,646			5,182			5,142			5,031
Bank owned life insurance		39,055			38,836			38,616			38,371			38,157
Federal Home Loan Bank ("FHLB") stock		13,185			10,618			12,142			12,942			11,742
Goodwill		104,765			104,765			104,765			104,765			104,338
Intangible assets		21,235			22,123			23,012			23,903			25,356
Other investments		9,121			8,722			8,487			9,460			9,499
Other assets		21,651			23,865			24,314			25,105			21,942
Total assets	$	3,174,080		$	3,090,090		$	3,058,247		$	3,030,997		$	2,952,742

Liabilities
Deposits
Noninterest-bearing	$	718,015		$	689,214		$	643,492		$	626,684		$	605,607
Interest-bearing		1,759,862			1,720,477			1,700,550			1,626,041			1,634,237
Total deposits		2,477,877			2,409,691			2,344,042			2,252,725			2,239,844
Short-term borrowings		50,065			19,119			37,010			94,167			24,264
Long-term FHLB advances and other borrowings		204,772			224,802			249,832			254,863			254,893
Subordinated notes		29,518			29,505			29,491			29,479			29,466
Accrued interest payable		1,854			1,846			1,294			1,851			1,444
Other liabilities		31,535			32,660			31,401			32,201			34,676
Total liabilities		2,795,621			2,717,623			2,693,070			2,665,286			2,584,587

Shareholders' equity
Common stock		21,064			20,972			20,949			20,931			20,854
Paid-in capital in excess of par value		227,708			230,298			229,432			228,814			226,980
Less: common stock held in treasury, at cost		(66,895	)		(66,200	)		(66,140	)		(58,144	)		(53,000	)
Accumulated other comprehensive income (loss), net of tax		2,128			2,488			1,502			(412	)		(11,040	)
Retained earnings		194,454			184,909			179,434			174,522			184,361
Total shareholders equity		378,459			372,467			365,177			365,711			368,155
Total liabilities and shareholders' equity	$	3,174,080		$	3,090,090		$	3,058,247		$	3,030,997		$	2,952,742

Bryn Mawr Bank Corporation
Supplemental Balance Sheet Information (unaudited)
(dollars in thousands)
	Portfolio Loans and Leases as of
	September 30, 2016			June 30, 2016			March 31, 2016			December 31, 2015			September 30, 2015
Commercial mortgages	$	1,089,621		$	1,055,934		$	1,044,415		$	964,259		$	971,983
Home equity loans and lines		206,578			202,989			205,896			209,473			212,258
Residential mortgages		418,408			414,863			412,006			406,404			399,730
Construction		133,269			133,313			119,193			90,421			82,820
Total real estate loans		1,847,876			1,807,099			1,781,510			1,670,557			1,666,791

Commercial & Industrial		565,497			538,684			523,053			524,515			488,977
Consumer		23,717			21,561			21,427			22,129			22,350
Leases		56,267			56,477			52,851			51,787			50,646
Total non-real estate loans and leases		645,481			616,722			597,331			598,431			561,973
Total portfolio loans and leases	$	2,493,357		$	2,423,821		$	2,378,841		$	2,268,988		$	2,228,764


	Nonperforming Loans and Leases as of
	September 30, 2016			June 30, 2016			March 31, 2016			December 31, 2015			September 30, 2015
Commercial mortgages	$	139		$	139		$	872		$	829		$	931
Home equity loans and lines		2,827			3,011			1,953			2,027			1,661
Residential mortgages		2,845			2,909			2,923			3,212			5,249
Construction		-			-			12			34			34
Total nonperforming real estate loans		5,811			6,059			5,760			6,102			7,875

Commercial & Industrial		3,960			3,457			3,822			4,133			4,337
Consumer		2			4			-			-			2
Leases		110			97			54			9			101
Total nonperforming non-real estate loans and leases		4,072			3,558			3,876			4,142			4,440
Total nonperforming portfolio loans and leases	$	9,883		$	9,617		$	9,636		$	10,244		$	12,315


	Net Loan and Lease Charge-Offs (Recoveries) for the Three Months Ended
	September 30, 2016			June 30, 2016			March 31, 2016			December 31, 2015			September 30, 2015
Commercial mortgage	$	(4	)	$	(3	)	$	107		$	(4	)	$	-
Home equity loans and lines		375			11			71			561			(21	)
Residential		2			262			(35	)		239			11
Construction		-			(62	)		-			(1	)		(1	)
Total net charge-offs (recoveries) of real estate loans		373			208			143			795			(11	)

Commercial & Industrial		95			(44	)		25			902			38
Consumer		58			30			20			55			26
Leases		178			60			234			103			171
Total net charge-offs of non-real estate loans and leases		331			46			279			1,060			235
Total net charge-offs	$	704		$	254		$	422		$	1,855		$	224

Bryn Mawr Bank Corporation
Supplemental Balance Sheet Information (unaudited)
(dollars in thousands)
	Investment Securities Available for Sale, at Fair Value
	September 30, 2016			June 30, 2016			March 31, 2016			December 31, 2015			September 30, 2015
U.S. Treasury securities	$	101		$	102		$	102		$	101		$	102
Obligations of the U.S. Government and agencies		76,598			86,134			96,080			101,495			91,639
State & political subdivisions - tax-free		36,735			39,047			39,502			41,442			43,388
State & political subdivisions - taxable		529			532			1,093			524			742
Mortgage-backed securities		184,919			186,354			183,127			158,689			155,509
Collateralized mortgage obligations		51,344			36,702			29,106			29,799			32,953
Other debt securities		1,450			1,450			1,700			1,691			1,896
Bond mutual funds		11,847			11,774			11,725			11,810			11,798
Other investments		3,387			3,375			3,384			3,415			3,394
Total	$	366,910		$	365,470		$	365,819		$	348,966		$	341,421


	Unrealized Gain (Loss) on Investment Securities Available for Sale
	September 30, 2016			June 30, 2016			March 31, 2016			December 31, 2015			September 30, 2015
U.S. Treasury securities	$	-		$	1		$	1		$	-		$	1
Obligations of the U.S. Government and agencies		946			1,183			984			153			712
State & political subdivisions - tax-free		131			240			173			75			153
State & political subdivisions - taxable		5			8			18			(1	)		2
Mortgage-backed securities		3,801			3,958			3,026			1,267			2,591
Collateralized mortgage obligations		253			496			330			43			339
Other debt securities		-			-			-			(9	)		(4	)
Bond mutual funds		(109	)		(182	)		(231	)		(146	)		(158	)
Other investments		34			(66	)		(155	)		(192	)		(193	)
Total	$	5,061		$	5,638		$	4,146		$	1,190		$	3,443


	Deposits
	September 30, 2016			June 30, 2016			March 31, 2016			December 31, 2015			September 30, 2015
Interest-bearing deposits:
Interest-bearing checking	$	333,055		$	333,425		$	335,240		$	338,861		$	330,683
Money market		725,116			718,144			773,637			749,726			748,983
Savings		228,391			217,877			190,477			187,299			192,995
Wholesale non-maturity deposits		64,664			58,690			62,454			67,717			65,636
Wholesale time deposits		99,052			113,274			131,145			53,185			57,671
Retail time deposits		309,584			279,067			207,597			229,253			238,269
Total interest-bearing deposits		1,759,862			1,720,477			1,700,550			1,626,041			1,634,237
Noninterest-bearing deposits		718,015			689,214			643,492			626,684			605,607
Total deposits	$	2,477,877		$	2,409,691		$	2,344,042		$	2,252,725		$	2,239,844

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, 2016			June 30, 2016			March 31, 2016			December 31, 2015			September 30, 2015			September 30, 2016			September 30, 2015
Interest income:
Interest and fees on loans and leases	$	27,931		$	27,679		$	26,696		$	26,080		$	25,620		$	82,306		$	76,352
Interest on cash and cash equivalents		27			42			46			63			107			115			346
Interest on investment securities:		1,556			1,565			1,527			1,623			1,302			4,648			4,078
Total interest income		29,514			29,286			28,269			27,766			27,029			87,069			80,776
Interest expense:
Interest on deposits		1,575			1,402			1,076			1,046			1,076			4,053			3,166
Interest on short-term borrowings		34			20			17			9			8			71			39
Interest on FHLB advances and other borrowings		818			867			908			912			881			2,593			2,642
Interest on subordinated notes		370			370			366			370			231			1,106			231
Total interest expense		2,797			2,659			2,367			2,337			2,196			7,823			6,078
Net interest income		26,717			26,627			25,902			25,429			24,833			79,246			74,698
Provision for loan and lease losses (the "Provision")		1,412			445			1,410			1,777			1,200			3,267			2,619
Net interest income after Provision		25,305			26,182			24,492			23,652			23,633			75,979			72,079
Noninterest income:
Fees for wealth management services		9,100			9,431			8,832			8,995			9,194			27,363			27,899
Insurance revenue		886			845			1,276			842			1,065			3,007			2,903
Service charges on deposits		688			713			702			742			721			2,103			2,185
Loan servicing and other fees		497			539			492			502			397			1,528			1,585
Net gain on sale of loans		985			896			760			751			685			2,641			2,271
Net (loss) gain on sale of investment securities available for sale		(28	)		(43	)		(15	)		58			60			(86	)		873
Net (loss) gain on sale of other real estate owned		-			-			(76	)		33			-			(76	)		90
Dividends on FHLB and FRB stocks		277			263			214			330			138			754			1,052
Other operating income		1,487			1,176			1,023			1,415			1,090			3,686			3,434
Total noninterest income		13,892			13,820			13,208			13,668			13,350			40,920			42,292
Noninterest expense:
Salaries and wages		11,621			12,197			11,738			11,700			10,941			35,556			32,875
Employee benefits		2,420			2,436			2,485			2,268			2,590			7,341			7,937
Loss on pension termination		-			-			-			17,377			-			-			-
Occupancy and bank premises		2,349			2,367			2,488			2,474			2,557			7,204			7,831
Branch lease termination expense		-			-			-			929			-			-			-
Furniture, fixtures and equipment		1,837			1,895			1,919			2,129			1,712			5,651			4,712
Advertising		334			372			284			656			410			990			1,446
Amortization of intangible assets		888			889			891			937			953			2,668			2,890
Impairment of intangible assets		-			-			-			387			-			-			-
Impairment (recovery) of mortgage servicing rights ("MSRs")		29			599			83			(17	)		36			711			87
Due diligence, merger-related and merger integration expenses		-			-			-			1,860			1,015			-			4,810
Professional fees		937			946			813			1,010			843			2,696			2,343
Pennsylvania bank shares tax		675			640			638			(46	)		433			1,953			1,299
Information technology		881			875			1,048			874			1,053			2,804			2,569
Other operating expenses		3,506			3,043			2,664			4,413			2,860			9,213			10,015
Total noninterest expense		25,477			26,259			25,051			46,951			25,403			76,787			78,814
Income (loss) before income taxes		13,720			13,743			12,649			(9,631	)		11,580			40,112			35,557
Income tax expense (benefit)		4,346			4,810			4,328			(3,276	)		4,084			13,484			12,448
Net income (loss)	$	9,374		$	8,933		$	8,321		$	(6,355	)	$	7,496		$	26,628		$	23,109
Per share data:
Weighted average shares outstanding		16,860,727			16,812,219			16,848,202			17,129,234			17,572,421			16,840,457			17,610,353
Dilutive common shares		211,631			215,200			35,162			-			261,877			153,998			320,067
Adjusted weighted average diluted shares		17,072,358			17,027,419			16,883,364			17,129,234			17,834,298			16,994,455			17,930,420
Basic earnings (loss) per common share	$	0.56		$	0.53		$	0.49		$	(0.37	)	$	0.43		$	1.58		$	1.31
Diluted earnings (loss) per common share	$	0.55		$	0.52		$	0.49		$	(0.37	)	$	0.42		$	1.57		$	1.29
Dividend declared per share	$	0.21		$	0.20		$	0.20		$	0.20		$	0.20		$	0.61		$	0.58
Effective tax rate		31.68	%		35.09	%		34.59	%		34.02	%		35.27	%		33.62	%		35.01	%

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, 2016									June 30, 2016									March 31, 2016									December 31, 2015									September 30, 2015									September 30, 2016									September 30, 2015
(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	$	33,532		$	27			0.32	%	$	44,950		$	42			0.38	%	$	39,050		$	46			0.47	%	$	90,832		$	63			0.28	%	$	165,723		$	107			0.26	%	$	39,157		$	115			0.39	%	$	184,689		$	346			0.25	%
Investment securities - available for sale:
Taxable		329,293			1,423			1.72	%		325,893			1,433			1.77	%		316,353			1,397			1.78	%		307,524			1,432			1.85	%		310,582			1,172			1.50	%		323,866			4,263			1.76	%		318,510			3,691			1.55	%
Tax-exempt		37,893			189			1.98	%		39,193			187			1.92	%		40,658			191			1.89	%		43,144			195			1.79	%		41,424			186			1.78	%		39,243			567			1.93	%		37,871			546			1.93	%
Total investment securities - available for sale		367,186			1,612			1.75	%		365,086			1,620			1.78	%		357,011			1,588			1.79	%		350,668			1,627			1.84	%		352,006			1,358			1.53	%		363,109			4,830			1.78	%		356,381			4,237			1.59	%

Investment securities - held to maturity		2,907			6			0.82	%		2,427			4			0.66	%		-			-						-			-			0.00	%		-			-						1,782			4			0.30	%		-			-
Investment securities - trading		3,523			2			0.23	%		3,640			2			0.22	%		3,946			2			0.20	%		3,571			60			6.67	%		4,022			5			0.49	%		3,703			2			0.07	%		3,985			21			0.70	%

Loans and leases *		2,476,972			28,032			4.50	%		2,412,643			27,761			4.63	%		2,308,584			26,778			4.67	%		2,247,720			26,158			4.62	%		2,191,652			25,698			4.65	%		2,399,683			82,571			4.60	%		2,131,278			76,548			4.80	%

Total interest-earning assets		2,884,120			29,679			4.09	%		2,828,746			29,429			4.18	%		2,708,591			28,414			4.22	%		2,692,791			27,908			4.11	%		2,713,403			27,168			3.97	%		2,807,434			87,522			4.16	%		2,676,333			81,152			4.05	%

Cash and due from banks		16,228									16,413									16,501									18,005									17,160									16,380									17,484
Less: allowance for loan and lease losses		(17,257	)								(17,271	)								(16,239	)								(16,106	)								(15,066	)								(16,924	)								(14,760	)
Other assets		258,928									262,065									264,295									264,321									265,811									261,753									257,896

Total assets	$	3,142,019								$	3,089,953								$	2,973,148								$	2,959,011								$	2,981,308								$	3,068,643								$	2,936,953

Liabilities:

Interest-bearing deposits:
Savings, NOW and market rate deposits	$	1,286,404		$	641			0.20	%	$	1,273,964		$	589			0.19	%	$	1,279,630		$	569			0.18	%	$	1,260,575		$	565			0.18	%	$	1,260,529		$	584			0.18	%	$	1,280,023		$	1,799			0.19	%	$	1,245,857		$	1,753			0.19	%
Wholesale deposits		164,706			327			0.79	%		196,517			361			0.74	%		137,201			233			0.68	%		119,394			186			0.62	%		133,277			203			0.60	%		166,136			921			0.74	%		134,607			586			0.58	%
Retail time deposits		278,579			607			0.87	%		246,771			452			0.74	%		216,820			274			0.51	%		231,605			295			0.51	%		251,170			289			0.46	%		247,504			1,333			0.72	%		264,168			827			0.42	%
Total interest-bearing deposits		1,729,689			1,575			0.36	%		1,717,252			1,402			0.33	%		1,633,651			1,076			0.26	%		1,611,574			1,046			0.26	%		1,644,976			1,076			0.26	%		1,693,663			4,053			0.32	%		1,644,632			3,166			0.26	%

Borrowings:
Short-term borrowings		40,966			34			0.33	%		32,328			20			0.25	%		34,158			17			0.20	%		26,092			9			0.14	%		28,166			8			0.11	%		35,836			71			0.26	%		39,352			39			0.13	%
Long-term FHLB advances and other borrowings		218,920			818			1.49	%		236,248			867			1.48	%		250,015			908			1.46	%		254,880			912			1.42	%		248,606			881			1.41	%		235,002			2,593			1.47	%		254,810			2,642			1.39	%
Subordinated notes		29,509			370			4.99	%		29,496			370			5.05	%		29,482			366			4.99	%		29,471			370			4.98	%		18,190			231			5.04	%		29,496			1,106			5.01	%		6,130			231			5.04	%
Total borrowings		289,395			1,222			1.68	%		298,072			1,257			1.70	%		313,655			1,291			1.66	%		310,443			1,291			1.65	%		294,962			1,120			1.51	%		300,334			3,770			1.68	%		300,292			2,912			1.30	%

Total interest-bearing liabilities		2,019,084			2,797			0.55	%		2,015,324			2,659			0.53	%		1,947,306			2,367			0.49	%		1,922,017			2,337			0.48	%		1,939,938			2,196			0.45	%		1,993,997			7,823			0.52	%		1,944,924			6,078			0.42	%

Noninterest-bearing deposits		716,581									675,710									631,047									634,969									625,547									674,601									580,356
Other liabilities		33,400									32,804									33,923									36,665									39,219									33,375									35,978
Total noninterest-bearing liabilities		749,981									708,514									664,970									671,634									664,766									707,976									616,334

Total liabilities		2,769,065									2,723,838									2,612,276									2,593,651									2,604,704									2,701,973									2,561,258

Shareholders' equity		372,954									366,115									360,872									365,360									376,604									366,669									375,695

Total liabilities and shareholders' equity	$	3,142,019								$	3,089,953								$	2,973,148								$	2,959,011								$	2,981,308								$	3,068,642								$	2,936,953

Interest income to earning assets								4.09	%								4.18	%								4.22	%								4.11	%								3.97	%								4.16	%								4.05	%

Net interest spread								3.54	%								3.65	%								3.73	%								3.63	%								3.52	%								3.64	%								3.63	%
Effect of noninterest-bearing sources								0.17	%								0.16	%								0.14	%								0.14	%								0.13	%								0.15	%								0.12	%

Tax-equivalent net interest margin				$	26,882			3.71	%				$	26,770			3.81	%				$	26,047			3.87	%				$	25,571			3.77	%				$	24,972			3.65	%				$	79,699			3.79	%				$	75,074			3.75	%

Tax-equivalent adjustment				$	165			0.02	%				$	143			0.02	%				$	145			0.02	%				$	142			0.02	%				$	139			0.02	%				$	453			0.02	%				$	376			0.02	%

Supplemental Information Regarding Accretion of Fair Value Marks
				Interest Income (Expense) Effect			Effect on Yield or Rate						Interest Income (Expense) Effect			Effect on Yield or Rate						Interest Income (Expense) Effect			Effect on Yield or Rate						Interest Income (Expense) Effect			Effect on Yield or Rate						Interest Income (Expense) Effect			Effect on Yield or Rate						Interest Income (Expense) Effect			Effect on Yield or Rate						Interest Income (Expense) Effect			Effect on Yield or Rate
Loans and leases				$	578			0.09	%				$	1,076			0.18	%				$	953			0.17	%				$	707			0.12	%				$	763			0.14	%				$	2,607			0.15	%				$	3,136			0.20	%
Retail time deposits					(29	)		-0.04	%					(61	)		-0.10	%					(110	)		-0.20	%					(123	)		-0.21	%					(188	)		-0.30	%					(200	)		-0.11	%					(638	)		-0.32	%
Short-term borrowings					-			0.00	%					-			0.00	%					(12	)		-0.14	%					(35	)		-0.53	%					(35	)		-0.49	%					(12	)		-0.04	%					(104	)		-0.35	%
Long-term FHLB advances and other borrowings					(30	)		-0.05	%					(30	)		-0.05	%					(30	)		-0.05	%					(30	)		-0.05	%					(30	)		-0.05	%					(90	)		-0.05	%					(96	)		-0.05	%
Net interest income from fair value marks				$	637								$	1,167								$	1,105								$	895								$	1,016								$	2,909								$	3,974
Purchase accounting effect on tax-equivalent margin								0.09	%								0.17	%								0.16	%								0.13	%								0.15	%								0.14	%								0.20	%

*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, 2016			June 30, 2016			March 31, 2016			December 31, 2015			September 30, 2015			September 30, 2016			September 30, 2015
Reconciliation of Net Income to Net Income (core):
Net income (loss) (a GAAP measure)	$	9,374		$	8,933		$	8,321		$	(6,355	)	$	7,496		$	26,628		$	23,109
Less: Tax-effected non-core noninterest income:
Loss (gain) on sale of investment securities available for sale		18			28			10			(38	)		(39	)		56			(567	)
Add: Tax-effected non-core noninterest expense items:
Loss on pension termination		-			-			-			11,295			-			-			-
Severance expense (Salaries and wages)		-			-			-			142			124			-			-
Branch lease termination expense		-			-			-			604			-			-			-
Debt and swap prepayment penalty (Other operating expenses)		-			-			-			397			-			-			339
Impairment of intangible assets		-			-			-			252			-			-			-
Due diligence, merger-related and merger integration expenses		-			-			-			1,209			660			-			3,127
Net income (core) (a non-GAAP measure)	$	9,392		$	8,961		$	8,331		$	7,506		$	8,241		$	26,684		$	26,008

Calculation of Basic and Diluted Earnings per Common Share (core):
Weighted average common shares outstanding		16,860,727			16,812,219			16,848,202			17,129,234			17,572,421			16,840,457			17,630,263
Dilutive common shares		211,631			215,200			35,162			112,783			261,877			153,998			349,163
Adjusted weighted average diluted shares		17,072,358			17,027,419			16,883,364			17,242,017			17,834,298			16,994,455			17,979,426
Basic earnings per common share (core) (a non-GAAP measure)	$	0.56		$	0.53		$	0.49		$	0.44		$	0.47		$	1.58		$	1.48
Diluted earnings per common share (core) (a non-GAAP measure)	$	0.55		$	0.53		$	0.49		$	0.44		$	0.46		$	1.57		$	1.45

Calculation of Return on Average Tangible Equity:
Net income (loss)	$	9,374		$	8,933		$	8,321		$	(6,355	)	$	7,496		$	26,628		$	23,109
Add: Tax-effected amortization and impairment of intangible assets		577			578			579			861			619			1,734			1,879
Net tangible income (numerator)	$	9,951		$	9,511		$	8,900		$	(5,494	)	$	8,115		$	28,362		$	24,988

Average shareholders' equity	$	372,954		$	366,115		$	360,872		$	365,360		$	376,604		$	366,669		$	375,695
Less: Average goodwill and intangible assets		(126,505	)		(127,402	)		(128,296	)		(129,292	)		(130,241	)		(127,398	)		(127,806	)
Net average tangible equity (denominator)	$	246,449		$	238,713		$	232,576		$	236,068		$	246,363		$	239,271		$	247,889

Return on tangible equity (a non-GAAP measure)		16.06	%		16.02	%		15.39	%		-9.23	%		13.07	%		15.83	%		13.48	%

Calculation of Tangible Equity Ratio:
Total shareholders' equity	$	378,459		$	372,467		$	365,177		$	365,711		$	368,155
Less: Goodwill and intangible assets		(126,000	)		(126,888	)		(127,777	)		(128,668	)		(129,694	)
Net tangible equity (numerator)	$	252,459		$	245,579		$	237,400		$	237,043		$	238,461

Total assets	$	3,174,080		$	3,090,090		$	3,058,247		$	3,030,997		$	2,952,742
Less: Goodwill and intangible assets		(126,000	)		(126,888	)		(127,777	)		(128,668	)		(129,694	)
Tangible assets (denominator)	$	3,048,080		$	2,963,202		$	2,930,470		$	2,902,329		$	2,823,048

Tangible equity ratio		8.28	%		8.29	%		8.10	%		8.17	%		8.45	%

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)

	As of or For the Three Months Ended															As of or For the Nine Months Ended
	September 30, 2016			June 30, 2016			March 31, 2016			December 31, 2015			September 30, 2015			September 30, 2016			September 30, 2015
Calculation of Efficiency Ratio:
Noninterest expense	$	25,477		$	26,259		$	25,051		$	46,951		$	25,403		$	76,787		$	78,814
Less: certain noninterest expense items*:
Loss on pension termination		-			-			-			(17,377	)		-			-			-
Severance expense (Salaries and wages)		-			-			-			(218	)		(191	)		-			-
Branch lease termination expense		-			-			-			(929	)		-			-			-
Debt and swap prepayment penalty (Other operating expenses)		-			-			-			(611	)		-			-			(522	)
Amortization of intangibles		(888	)		(889	)		(891	)		(937	)		(953	)		(2,668	)		(2,890	)
Impairment of intangible assets		-			-			-			(388	)		-			-			-
Due diligence, merger-related and merger integration expenses		-			-			-			(1,860	)		(1,015	)		-			(4,810	)
Noninterest expense (adjusted) (numerator)	$	24,589		$	25,370		$	24,160		$	24,631		$	23,244		$	74,119		$	70,592

Noninterest income	$	13,892		$	13,820		$	13,208		$	13,668		$	13,350		$	40,920		$	42,292
Less: non-core noninterest income items:
Loss (gain) on sale of investment securities available for sale		28			43			15			(58	)		(60	)		86			(872	)
Noninterest income (core)	$	13,920		$	13,863		$	13,223		$	13,610		$	13,290		$	41,006		$	41,420
Net interest income		26,717			26,627			25,902			25,429			24,833			79,246			74,698
Noninterest income (core) and net interest income (denominator)	$	40,637		$	40,490		$	39,125		$	39,039		$	38,123		$	120,252		$	116,118

Efficiency ratio		60.51	%		62.66	%		61.75	%		63.09	%		60.97	%		61.64	%		60.79	%
* In calculating the Corporation's efficiency ratio, which is used by Management to identify the cost of generating each dollar of core revenue, certain non-core income and expense items as well as the amortization of intangible assets, are excluded.

Supplemental Loan and Allowance Information Used to Calculate Non-GAAP Measures

Total Allowance	$	17,744		$	17,036		$	16,845		$	15,857		$	15,935
less: Allowance on acquired loans		28			28			28			-			35
Allowance on originated loans and leases	$	17,716		$	17,008		$	16,817		$	15,857		$	15,900

Total Allowance	$	17,744		$	17,036		$	16,845		$	15,857		$	15,935
Loan mark on acquired loans		13,391			14,566			15,930			17,108			18,179
Total Allowance + Loan mark	$	31,135		$	31,602		$	32,775		$	32,965		$	34,114

Total Portfolio loans and leases	$	2,493,357		$	2,423,821		$	2,378,841		$	2,268,988		$	2,228,764
less: Originated loans and leases		2,176,549			2,090,070			2,015,683			1,883,869			1,804,835
Net acquired loans	$	316,808		$	333,751		$	363,158		$	385,119		$	423,929
add: Loan mark on acquired loans		13,391			14,566			15,930			17,108			18,179
Gross acquired loans (excludes loan mark)	$	330,199		$	348,317		$	379,088		$	402,227		$	442,108
Originated loans and leases		2,176,549			2,090,070			2,015,683			1,883,869			1,804,835
Total Gross portfolio loans and leases	$	2,506,748		$	2,438,387		$	2,394,771		$	2,286,096		$	2,246,943

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