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	bmtc20170720_8k.htm

Exhibit 99.1

FOR RELEASE: IMMEDIATELY

FOR MORE INFORMATION CONTACT:

Frank Leto, President, CEO

610-581-4730

Mike Harrington, CFO

610-526-2466

Bryn Mawr Bank Corporation Reports

Record Quarterly Net Income, Wealth Assets Top $12 Billion,

Dividend Increases by 5%

BRYN MAWR, Pa., July 20, 2017 - 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 June 30, 2017, as compared to net income of $9.0 million, or $0.53 diluted earnings per share, for the three months ended March 31, 2017 and $8.9 million, or $0.52 diluted earnings per share, for the three months ended June 30, 2016. Included in net income for the three months ended June 30, 2017 and March 31, 2017 were pre-tax due diligence and merger-related expenses of $1.2 million and $511 thousand, respectively, with the 2017 figures primarily related to the pending merger with Royal Bancshares of Pennsylvania, Inc. (“Royal Bank”).

On a non-GAAP basis, core net income, which excludes certain non-core income and expense items, as detailed in the appendix to this earnings release, was $10.2 million, or $0.59 diluted earnings per share, for the three months ended June 30, 2017 as compared to $9.4 million, or $0.55 diluted earnings per share, for the three months ended March 31, 2017 and $9.0 million, or $0.53 diluted earnings per share, for the three months ended June 30, 2016. Management believes the core net income measure is important in evaluating the Corporation’s performance on a more comparable basis between periods. A reconciliation of this and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release.

“We are very pleased with the results for the second quarter,” commented Frank Leto, President and Chief Executive Officer, continuing, “For the first time in the Corporation’s history, our core net income exceeded $10 million for the quarter and our wealth assets have exceeded the $12 billion mark.”

Mr. Leto continued, “Not only is the growth in our loan portfolio strong, increasing 4.4% from March 31, 2017 to June 30, 2017, the credit quality of the portfolio remains stable, as evidenced by the reduced provision for loan and lease losses recorded this quarter. In addition, noninterest income was boosted by the outstanding performance of our newly established capital markets group, which opened for business in May 2017 and has already recorded revenue of $953 thousand for the quarter.”

On the corporate development front, Mr. Leto noted, “The Royal Bank merger preparations are continuing, with the close of the transaction expected in the third quarter of 2017. In addition, the May 2017 acquisition of Hirshorn Boothby, located in Chestnut Hill, Philadelphia, along with the opening of our Princeton wealth management office, positions us well to capitalize on the expanded footprint that will be created by the addition of the Royal Bank branch network.”

The acquisition of Royal Bank is subject to applicable regulatory approvals and is also subject to certain closing conditions.

On July 20, 2017, the Board of Directors of the Corporation declared a quarterly dividend of $0.22 per share, payable September 1, 2017 to shareholders of record as of August 2, 2017. This represents a $0.01, or 4.8%, increase from the previous quarter.

SIGNIFICANT ITEMS OF NOTE

Results of Operations – Second Quarter 2017 Compared to First Quarter 2017

●

Net income for the three months ended June 30, 2017 was $9.4 million, or $0.55 diluted earnings per share, as compared to $9.0 million, or $0.53 diluted earnings per share for the three months ended March 31, 2017. Contributing to the increase was a $562 thousand increase in net interest income, a $374 thousand decrease in provision for loan and lease loss (the “Provision”) and an increase of $504 thousand in fees for wealth management services and the addition of $953 thousand in capital markets revenue, related to our newly-established capital markets group. Partially offsetting these items were increases of $1.1 million in salaries and wages, $725 thousand in due diligence, merger-related and merger integration costs and $477 thousand in other operating expenses.

●

Net interest income for the three months ended June 30, 2017 was $28.0 million, an increase of $562 thousand from $27.4 million for the three months ended March 31, 2017. Average interest-earning assets increased by $82.6 million, with average loans increasing $59.9 million and average available for sale investment securities increasing $34.4 million. The tax-equivalent yield earned on available for sale investment securities increased by 9 basis points while the tax-equivalent yield earned on loans decreased by 5 basis points. In conjunction with the Royal Bank merger, management intends to immediately sell certain acquired investment securities. In anticipation of these investment sales, management has begun purchasing certain securities that more closely align with the management’s desired liquidity and interest rate risk profile.

●

The tax-equivalent net interest margin of 3.68% for the second quarter of 2017 decreased 6 basis points from 3.74% for the first quarter of 2017. During the second quarter of 2017, the accretion of purchase accounting adjustments contributed a 6 basis point increase in the tax-equivalent net interest margin as compared to an 11 basis point increase for the three months ended March 31, 2017. Excluding the effect of the accretion of purchase accounting adjustments, the tax-equivalent net interest margin remained relatively flat quarter over quarter with the tax-equivalent yield on average loans increasing 1 basis point over the first quarter and the tax-equivalent yield on available for sale investment securities increasing 9 basis points, as management positions the investment portfolio in anticipation of the Royal Bank merger as described in the previous bullet point.

●

Non-interest income for the three months ended June 30, 2017 increased by $1.6 million from the first quarter of 2017. Largely contributing to this increase was an increase of $504 thousand in revenue for wealth management services, $310 thousand of which was related to tax services provided during the quarter, a $180 thousand increase in insurance revenues attributed to the May 2017 acquisition of Hirshorn Boothby, and a $953 thousand contribution from the newly-established capital markets group related to interest-rate swap fee income.

●

Non-interest expense for the three months ended June 30, 2017 increased $1.8 million, to $28.5 million, as compared to $26.7 million for the first quarter of 2017. The significant contributors to this increase included a $1.1 million increase in salaries and wages largely related to staffing additions in connection with the Hirshorn Boothby acquisition, the Capital Markets initiative and the Princeton wealth management office, as well as increases in incentive compensation along with an increase of $725 thousand in due diligence, merger-related and merger integration costs, most of which was related to the Royal Bank merger. Additionally, other operating expenses increased by $477 thousand related to a $117 thousand increase in deferred compensation expense associated with the valuation of Corporation stock held in the deferred compensation trusts and $200 thousand increase in impairment of other real estate owned (“OREO”) and repossessed assets. Partially offsetting these increases was a $367 thousand decrease in Pennsylvania bank shares tax resulting from changes in revenue apportionment for 2016 and tax credits connected to contributions to local schools under the Pennsylvania Educational Improvement Tax Credit (EITC) program.

●

For the three months ended June 30, 2017, net loan and lease charge-offs totaled $625 thousand, as compared to $670 thousand for the first quarter of 2017. The Provision for the three months ended June 30, 2017 was a release of $83 thousand as compared to a Provision of $291 thousand for the first quarter of 2017. The decrease in the Provision was primarily related to a decline in certain historic charge-off rates over the look-back period, along with improvements in certain economic indicators which factor into the calculation of the overall allowance for loan and lease losses (the “Allowance”) requirement.

●

Income tax expense for the second quarter of 2017 increased by $270 thousand as compared to the first quarter of 2016. The 33 basis point increase in the effective tax rate from the first quarter of 2017 to the second quarter of 2017 was primarily the result of certain non-deductible merger expenses incurred in the second quarter of 2017.

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

●

Net income for the three months ended June 30, 2017 was $9.4 million, or $0.55 diluted earnings per share, as compared to $8.9 million, or diluted earnings per share of $0.52, for the same period in 2016. Contributing to the increase in net income was an increase of $1.3 million in net interest income, a decrease of $528 thousand in Provision, as well as increases of $376 thousand in fees for wealth management services and $953 thousand in capital markets revenue. Partially offsetting these changes were decreases of $337 thousand in gain on sale of loans, along with increases of $1.4 million in salaries and wages and $1.2 million in due diligence, merger-related and merger integration costs.

●

Net interest income for the three months ended June 30, 2017 was $28.0 million, an increase of $1.3 million, or 5.0%, from $26.6 million for the same period in 2016. The accretion of purchase accounting adjustments positively impacted the tax-equivalent net interest income recorded for the second quarter of 2017 by $450 thousand, as compared to $1.2 million for the same period in 2016. Average loans and leases for the three months ended June 30, 2017 increased by $203.0 million from the same period in 2016. Excluding the effect of the accretion of purchase accounting adjustments, the tax-equivalent yield on loans and leases decreased 2 basis points. The net effect of the yield decrease and volume increase on average loans and leases was a $2.2 million increase in tax-equivalent interest income on loans. Average available for sale investment securities increased by $55.0 million for the three months ended June 30, 2017 as compared to the same period in 2016, and experienced a 22 basis point tax-equivalent yield increase. The increase in volume and yield on available for sale investment securities resulted in a $470 thousand increase in tax-equivalent interest income for the second quarter of 2017 as compared to the same period in 2016. Partially offsetting the increase in average loans and available for sale investment securities was a $136.4 million increase in average interest-bearing deposits accompanied by a 10 basis point increase in rate paid on deposits resulting in a $581 thousand increase in interest expense for the second quarter of 2017 as compared to the same period in 2016.

●

The tax-equivalent net interest margin of 3.68% for the three months ended June 30, 2017 was a 13 basis point decrease from 3.81% for the same period in 2016. The decrease was largely related to the lower contribution to the tax-equivalent net interest margin from the accretion of purchase accounting adjustments. For the second quarter of 2017, the accretion of purchase accounting adjustments contributed 6 basis points to the tax-equivalent net interest margin as compared to 17 basis points for the same period in 2016. Excluding the effect of the accretion of purchase accounting adjustments, the tax-equivalent net interest margin decreased 2 basis points over the prior year quarter with the tax-equivalent yield on average loans decreasing 2 basis points over the prior year quarter. The tax-equivalent yield on available for sale investment securities increased 22 basis points, as management positions the investment portfolio in anticipation of the Royal Bank merger. The slight decline in the margin was also attributed to a 10 basis point increase in rate paid on deposits.

●

Non-interest income for the three months ended June 30, 2017 increased by $1.0 million from the same period in 2016. An increase of $376 thousand in fees for wealth management services, as a 25.1% increase in wealth assets from the June 30, 2016 level, and the $953 thousand in revenue generated by the Capital Markets initiative, were partially offset by a decrease of $337 thousand in gain on sale of loans, as origination activity has slowed from the same period in 2016.

●

Non-interest expense for the three months ended June 30, 2017 increased $2.3 million from the same period in 2016. The increase was related to a $1.4 million increase in salary and wages due to staffing increases from the Capital Markets initiative, the Hirshorn Boothby acquisition and the Princeton wealth management office, in addition to annual salary and wage increases and increases in incentive compensation, and a $1.2 million increase in due diligence, merger-related and merger integration costs primarily related to the Royal Bank merger, and a $782 thousand increase in other operating expenses, largely related to increases in contributions (which were offset by tax credits for Pennsylvania bank shares tax) and impairments of OREO and repossessed assets recorded in the second quarter of 2017.

●

For the three months ended June 30, 2017, the Corporation recorded a release from Allowance of $83 thousand as compared to a Provision of $445 thousand for the same period in 2016. Net charge-offs for the second quarter of 2017 were $625 thousand as compared to $254 thousand for the same period in 2016. The decrease in the Provision was primarily related to a decline in certain historic charge-off rates over the look-back period, along with improvements in certain economic indicators which factor into the calculation of the overall Allowance.

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

●

Total portfolio loans and leases of $2.67 billion as of June 30, 2017, increased by $131.2 million from December 31, 2016. Loan growth was concentrated in the commercial mortgage, construction and commercial and industrial sections of the portfolio, which increased by $87.0 million, or 7.8%, $14.6 million, or 10.3% and $19.4 million, or 3.4%, respectively.

●

The Allowance as of June 30, 2017 was $16.4 million, or 0.61% of portfolio loans as compared to $17.5 million, or 0.69% of portfolio loans and leases, as of December 31, 2016. In addition to the ratio of Allowance to portfolio loans, management also calculates two non-GAAP measures: the Allowance as a percentage of originated loans and leases, which was 0.68% as of June 30, 2017, as compared to 0.78% as of December 31, 2016, and the Allowance plus the remaining loan mark as a percentage of gross loans, which was 1.03% as of June 30, 2017, as compared to 1.17% as of December 31, 2016. A reconciliation of these and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release. The decrease in the Allowance ratios was primarily the result of improvements in certain economic indicators as well as decreases in average historic charge-off rates over the lookback period, both of which factor into the calculation of the overall Allowance requirement.

●

Available for sale investment securities as of June 30, 2017 were $443.7 million, a decrease of $123.3 million from December 31, 2016. Excluding the maturing, in January 2017, of $200 million of short-term U.S. Treasury bills, the available for sale investment portfolio has increased by $76.7 million since December 31, 2016, primarily in the U.S. government and agencies and the mortgage-backed securities segments of the portfolio. As previously mentioned the Corporation has begun positioning the investment portfolio in anticipation of the Royal Bank merger.

●	Total assets as of June 30, 2017 were $3.44 billion, an increase of $16.7 million from December 31, 2016. Increases in portfolio loans and leases were largely offset by a decrease in available for sale investment securities discussed in the previous bullet point.

●

Wealth assets under management, administration, supervision and brokerage totaled $12.05 billion as of June 30, 2017, an increase of $722.1 million from December 31, 2016. The increase in wealth assets was comprised of a $291.5 million increase in account balances whose fees are based on market value, and a $430.6 million increase in fixed rate flat-fee account types.

●	Deposits of $2.68 billion as of June 30, 2017 increased $102.1 million from December 31, 2016. Over 80% of this increase was in noninterest-bearing deposits, which grew by $82.3 million. The increase in noninterest-bearing deposits was primarily in small business accounts.

●

Borrowings of $295.0 million as of June 30, 2017 decreased $98.9 million from December 31, 2016. The decrease was comprised of a $73.9 million decrease in short-term borrowings and a $25.1 million decrease in long-term FHLB advances. In January 2017, $200 million of short-term borrowings associated with the maturing of $200 million of short-term U.S. Treasury bills were repaid. The net increase in short-term borrowings of $126.1 million were utilized to support the available for sale investment purchases and to replace $25.1 million of long-term FHLB advances which matured during the first half of 2017.

●

The capital ratios for the Bank and the Corporation, as of June 30, 2017, as shown in the attached tables, indicate levels well above the regulatory minimum to be considered “well capitalized.” At both the Bank and Corporation levels, the capital ratios to risk-weighted assets have all decreased from their December 31, 2016 levels largely as a result of the increase in risk-weighted assets, much of which was in the commercial mortgage, construction, and commercial and industrial segments of the loan portfolio, which are typically risk-weighted at 100%.

FORWARD LOOKING STATEMENTS AND SAFE HARBOR

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

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

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

# # # #

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 Six Months Ended
	June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016			June 30, 2016			June 30, 2017		June 30, 2016
Consolidated Balance Sheet (selected items)
Interest-bearing deposits with banks	$	30,806		$	69,978		$	34,206		$	30,118		$	20,481
Investment securities (AFS, HTM and Trading)		452,869			400,360			573,763			373,508			371,906
Loans held for sale		8,590			3,015			9,621			11,506			11,882
Portfolio loans and leases		2,666,651			2,555,589			2,535,425			2,493,357			2,423,821
Allowance for loan and lease losses ("ALLL")		(16,399	)		(17,107	)		(17,486	)		(17,744	)		(17,036	)
Goodwill and other intangible assets		129,211			124,629			125,170			126,000			126,888
Total assets		3,438,219			3,292,617			3,421,530			3,174,080			3,090,090
Deposits - interest-bearing		1,863,288			1,865,009			1,843,495			1,759,862			1,720,477
Deposits - non-interest-bearing		818,475			771,556			736,180			718,015			689,214
Short-term borrowings		130,295			23,613			204,151			50,065			19,119
Long-term FHLB advances and other borrowings		164,681			174,711			189,742			204,772			224,802
Subordinated notes		29,559			29,546			29,532			29,518			29,505
Total liabilities		3,043,242			2,904,522			3,040,403			2,795,621			2,717,623
Shareholders' equity		394,977			388,095			381,127			378,459			372,467

Average Balance Sheet (selected items)
Interest-bearing deposits with banks	$	26,266		$	39,669		$	55,298		$	33,532		$	44,950		$	32,931	$	42,000
Investment securities (AFS, HTM and Trading)		429,400			393,306			386,658			373,616			371,153			411,453		366,055
Loans held for sale		3,855			4,238			11,591			12,887			7,844			4,045		6,662
Portfolio loans and leases		2,611,755			2,551,439			2,506,376			2,464,085			2,404,799			2,581,764		2,353,951
Total interest-earning assets		3,071,276			2,988,652			2,959,923			2,884,120			2,828,746			3,030,193		2,768,668
Goodwill and intangible assets		126,537			124,884			125,614			126,505			127,402			125,715		127,849
Total assets		3,333,307			3,244,060			3,215,868			3,142,019			3,089,953			3,288,928		3,031,550
Deposits - interest-bearing		1,853,660			1,852,194			1,809,276			1,729,689			1,717,252			1,852,931		1,675,451
Short-term borrowings		98,869			47,603			40,629			40,966			32,328			73,378		33,243
Long-term FHLB advances and other borrowings		171,567			182,507			198,454			218,920			236,248			177,006		243,131
Subordinated notes		29,550			29,537			29,523			29,509			29,496			29,544		29,489
Total interest-bearing liabilities		2,153,646			2,111,841			2,077,882			2,019,084			2,015,324			2,132,859		1,981,314
Total liabilities		2,943,591			2,861,846			2,837,825			2,769,065			2,723,838			2,902,942		2,668,056
Shareholders' equity		389,716			382,214			378,043			372,954			366,115			385,986		363,494

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 Six Months Ended
	June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016			June 30, 2016			June 30, 2017			June 30, 2016
Income Statement
Net interest income	$	27,965		$	27,403		$	26,990		$	26,717		$	26,627		$	55,368		$	52,529
Provision for loan and lease losses		(83	)		291			1,059			1,412			445			208			1,855
Noninterest income		14,785			13,227			13,248			13,786			13,781			28,012			27,028
Noninterest expense		28,495			26,660			25,087			25,371			26,220			55,155			51,310
Income tax expense (benefit)		4,905			4,635			4,684			4,346			4,810			9,540			9,137
Net income		9,433			9,044			9,408			9,374			8,933			18,477			17,255
Basic earnings per share		0.56			0.53			0.56			0.56			0.53			1.09			1.02
Diluted earnings per share		0.55			0.53			0.55			0.55			0.52			1.07			1.01
Net income (core) ⁽¹⁾		10,236			9,375			9,402			9,392			8,961			19,612			17,232
Basic earnings per share (core) ⁽¹⁾		0.60			0.55			0.56			0.56			0.53			1.16			1.02
Diluted earnings per share (core) ⁽¹⁾		0.59			0.55			0.55			0.55			0.53			1.14			1.02
Cash dividends paid per share		0.21			0.21			0.21			0.21			0.20			0.42			0.40
Profitability Indicators
Return on average assets		1.14	%		1.13	%		1.16	%		1.19	%		1.16	%		1.13	%		1.14	%
Return on average equity		9.71	%		9.60	%		9.90	%		10.00	%		9.81	%		9.65	%		9.55	%
Return on tangible equity⁽¹⁾		15.06	%		14.96	%		15.68	%		16.06	%		16.02	%		15.01	%		15.71	%
Tax-equivalent net interest margin		3.68	%		3.74	%		3.65	%		3.71	%		3.81	%		3.71	%		3.84	%
Efficiency ratio⁽¹⁾		62.16	%		62.66	%		62.66	%		60.30	%		60.41	%		62.40	%		62.21	%
Mortgage Banking Information
Mortgage loans originated	$	46,848		$	48,550		$	78,749		$	84,885		$	64,893		$	95,398		$	117,425
Residential mortgage loans sold - servicing retained		20,312			27,690			44,763			40,462			26,944			48,002			52,909
Residential mortgage loans sold - servicing released		3,819			4,981			4,632			10,522			5,278			8,800			7,676
Total residential mortgage loans sold	$	24,131		$	32,671		$	49,395		$	50,984		$	32,222		$	56,802		$	60,585
Residential mortgage loans serviced for others	$	641,165		$	638,553		$	631,889		$	618,134		$	610,418
Share Data
Closing share price	$	42.50		$	39.50		$	42.15		$	31.99		$	29.20
Book value per common share	$	23.25		$	22.87		$	22.50		$	22.40		$	22.14
Tangible book value per common share	$	15.64		$	15.53		$	15.11		$	14.94		$	14.60
Price / book value		182.81	%		172.71	%		187.34	%		142.80	%		131.90	%
Price / tangible book value		271.69	%		254.41	%		278.96	%		214.07	%		200.05	%
Weighted average diluted shares outstanding		17,232,767			17,182,689			17,164,675			17,072,358			17,027,419			17,207,812			16,954,116
Shares outstanding, end of period		16,989,849			16,969,451			16,939,715			16,893,878			16,824,564
Wealth Management Information:

Wealth assets under mgmt, administration, supervision and brokerage ⁽²⁾	$	12,050,555		$	11,725,460		$	11,328,457		$	9,969,745		$	9,632,521
Fees for wealth management services	$	9,807		$	9,303		$	9,327		$	9,100		$	9,431

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 Six Months Ended
	June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016			June 30, 2016			June 30, 2017			June 30, 2016
Capital Ratios
Bryn Mawr Trust Company
Tier I capital to risk weighted assets ("RWA")		10.29	%		10.58	%		10.50	%		10.99	%		10.94	%
Total (Tier II) capital to RWA		10.90	%		11.25	%		11.19	%		11.70	%		11.65	%
Tier I leverage ratio		8.76	%		8.83	%		8.73	%		9.17	%		9.06	%
Tangible equity ratio ⁽¹⁾		8.24	%		8.46	%		7.85	%		8.85	%		8.79	%
Common equity Tier I capital to RWA		10.29	%		10.58	%		10.50	%		10.99	%		10.94	%

Bryn Mawr Bank Corporation
Tier I capital to RWA		10.12	%		10.50	%		10.51	%		10.42	%		10.45	%
Total (Tier II) capital to RWA		11.82	%		12.30	%		12.35	%		12.30	%		12.35	%
Tier I leverage ratio		8.63	%		8.77	%		8.73	%		8.70	%		8.65	%
Tangible equity ratio ⁽¹⁾		8.03	%		8.32	%		7.76	%		8.28	%		8.29	%
Common equity Tier I capital to RWA		10.12	%		10.50	%		10.51	%		10.42	%		10.45	%

Asset Quality Indicators

Net loan and lease charge-offs ("NCO"s)	$	625		$	670		$	1,317		$	704		$	254		$	1,295		$	676

Nonperforming loans and leases ("NPL"s)	$	7,237		$	7,329		$	8,363		$	9,883		$	9,617
Other real estate owned ("OREO")		1,122			978			1,017			867			784
Total nonperforming assets ("NPA"s)	$	8,359		$	8,307		$	9,380		$	10,750		$	10,401

Nonperforming loans and leases 30 or more days past due	$	4,076		$	5,097		$	6,072		$	6,684		$	5,599
Performing loans and leases 30 to 89 days past due		6,258			6,077			3,062			2,537			3,564
Performing loans and leases 90 or more days past due		-			-			-			-			-
Total delinquent loans and leases	$	10,334		$	11,174		$	9,134		$	9,221		$	9,163

Delinquent loans and leases to total loans and leases		0.39	%		0.44	%		0.36	%		0.37	%		0.38	%
Delinquent performing loans and leases to total loans and leases		0.23	%		0.24	%		0.12	%		0.10	%		0.15	%
NCOs / average loans and leases (annualized)		0.10	%		0.11	%		0.21	%		0.11	%		0.04	%		0.10	%		0.06	%
NPLs / total portfolio loans and leases		0.27	%		0.29	%		0.33	%		0.40	%		0.40	%
NPAs / total loans and leases and OREO		0.31	%		0.32	%		0.37	%		0.43	%		0.43	%
NPAs / total assets		0.24	%		0.25	%		0.27	%		0.34	%		0.34	%
ALLL / NPLs		226.60	%		233.42	%		209.09	%		179.54	%		177.14	%
ALLL / portfolio loans		0.61	%		0.67	%		0.69	%		0.71	%		0.70	%
ALLL on originated loans and leases / Originated loans and leases⁽¹⁾		0.68	%		0.75	%		0.78	%		0.81	%		0.81	%
(Total Allowance + Loan mark) / Total Gross portfolio loans and leases ⁽¹⁾		1.03	%		1.12	%		1.17	%		1.24	%		1.30	%

Troubled debt restructurings ("TDR"s) included in NPLs	$	2,470		$	2,681		$	2,632		$	1,680		$	1,779
TDRs in compliance with modified terms		6,148			6,492			6,395			6,305			4,984
Total TDRs	$	8,618		$	9,173		$	9,027		$	7,985		$	6,763

⁽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)

	June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016			June 30, 2016
Assets
Cash and due from banks	$	19,352		$	17,457		$	16,559		$	18,905		$	13,710
Interest-bearing deposits with banks		30,806			69,978			34,206			30,118			20,481
Cash and cash equivalents		50,158			87,435			50,765			49,023			34,191
Investment securities, available for sale		443,687			391,028			566,996			366,910			365,470
Investment securities, held to maturity		5,161			5,194			2,879			2,896			2,915
Investment securities, trading		4,021			4,138			3,888			3,702			3,521
Loans held for sale		8,590			3,015			9,621			11,506			11,882
Portfolio loans and leases, originated		2,409,964			2,286,814			2,240,987			2,176,549			2,090,070
Portfolio loans and leases, acquired		256,687			268,775			294,438			316,808			333,751
Total portfolio loans and leases		2,666,651			2,555,589			2,535,425			2,493,357			2,423,821
Less: Allowance for losses on originated loan and leases		(16,374	)		(17,069	)		(17,458	)		(17,716	)		(17,008	)
Less: Allowance for losses on acquired loan and leases		(25	)		(38	)		(28	)		(28	)		(28	)
Total allowance for loan and lease losses		(16,399	)		(17,107	)		(17,486	)		(17,744	)		(17,036	)
Net portfolio loans and leases		2,650,252			2,538,482			2,517,939			2,475,613			2,406,785
Premises and equipment		44,446			40,515			41,778			42,559			43,607
Accrued interest receivable		8,717			8,392			8,533			8,066			8,144
Mortgage servicing rights		5,683			5,686			5,582			4,793			4,646
Bank owned life insurance		39,680			39,479			39,279			39,055			38,836
Federal Home Loan Bank ("FHLB") stock		15,168			8,505			17,305			13,185			10,618
Goodwill		107,127			104,765			104,765			104,765			104,765
Intangible assets		22,084			19,864			20,405			21,235			22,123
Other investments		8,682			8,716			8,627			9,121			8,722
Other assets		24,763			27,403			23,168			21,651			23,865
Total assets	$	3,438,219		$	3,292,617		$	3,421,530		$	3,174,080		$	3,090,090

Liabilities
Deposits
Noninterest-bearing	$	818,475		$	771,556		$	736,180		$	718,015		$	689,214
Interest-bearing		1,863,288			1,865,009			1,843,495			1,759,862			1,720,477
Total deposits		2,681,763			2,636,565			2,579,675			2,477,877			2,409,691
Short-term borrowings		130,295			23,613			204,151			50,065			19,119
Long-term FHLB advances		164,681			174,711			189,742			204,772			224,802
Subordinated notes		29,559			29,546			29,532			29,518			29,505
Accrued interest payable		2,830			2,722			2,734			1,854			1,846
Other liabilities		34,114			37,365			34,569			31,535			32,660
Total liabilities		3,043,242			2,904,522			3,040,403			2,795,621			2,717,623

Shareholders' equity
Common stock		21,162			21,141			21,111			21,064			20,972
Paid-in capital in excess of par value		234,654			233,910			232,806			231,398			230,298
Less: common stock held in treasury, at cost		(67,091	)		(66,969	)		(66,950	)		(66,895	)		(66,200	)
Accumulated other comprehensive income (loss), net of tax		(1,564	)		(1,990	)		(2,409	)		2,128			2,488
Retained earnings		207,816			202,003			196,569			190,764			184,909
Total shareholders equity		394,977			388,095			381,127			378,459			372,467
Total liabilities and shareholders' equity	$	3,438,219		$	3,292,617		$	3,421,530		$	3,174,080		$	3,090,090

Bryn Mawr Bank Corporation

Supplemental Balance Sheet Information (unaudited)

(dollars in thousands)

	Portfolio Loans and Leases as of
	June 30, 2017		March 31, 2017		December 31, 2016		September 30, 2016		June 30, 2016
Commercial mortgages	$	1,197,936	$	1,137,870	$	1,110,897	$	1,089,621	$	1,055,934
Home equity loans and lines		208,480		203,962		208,000		206,578		202,989
Residential mortgages		416,488		418,264		413,540		418,408		414,863
Construction		156,581		145,699		141,964		133,269		133,313
Total real estate loans		1,979,485		1,905,795		1,874,401		1,847,876		1,807,099

Commercial & Industrial		599,203		567,917		579,791		565,497		538,684
Consumer		28,485		23,932		25,341		23,717		21,561
Leases		59,478		57,945		55,892		56,267		56,477
Total non-real estate loans and leases		687,166		649,794		661,024		645,481		616,722
Total portfolio loans and leases	$	2,666,651	$	2,555,589	$	2,535,425	$	2,493,357	$	2,423,821

	Nonperforming Loans and Leases as of
	June 30, 2017		March 31, 2017		December 31, 2016		September 30, 2016		June 30, 2016
Commercial mortgages	$	819	$	315	$	320	$	139	$	139
Home equity loans and lines		1,535		1,828		2,289		2,827		3,011
Residential mortgages		2,589		2,640		2,658		2,845		2,909
Construction		-		-		-		-		-
Total nonperforming real estate loans		4,943		4,783		5,267		5,811		6,059

Commercial & Industrial		2,112		2,471		2,957		3,960		3,457
Consumer		10		-		2		2		4
Leases		173		75		137		110		97
Total nonperforming non-real estate loans and leases		2,295		2,546		3,096		4,072		3,558
Total nonperforming portfolio loans and leases	$	7,238	$	7,329	$	8,363	$	9,883	$	9,617

	Net Loan and Lease Charge-Offs (Recoveries) for the Three Months Ended
	June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016			June 30, 2016
Commercial mortgage	$	(3	)	$	(3	)	$	(51	)	$	(4	)	$	(3	)
Home equity loans and lines		169			438			69			375			11
Residential		43			27			28			2			262
Construction		(1	)		(1	)		(1	)		-			(62	)
Total net charge-offs (recoveries) of real estate loans		208			461			45			373			208

Commercial & Industrial		185			59			1,128			95			(44	)
Consumer		16			39			42			58			30
Leases		216			111			102			178			60
Total net charge-offs of non-real estate loans and leases		417			209			1,272			331			46
Total net charge-offs	$	625		$	670		$	1,317		$	704		$	254

Bryn Mawr Bank Corporation

Supplemental Balance Sheet Information (unaudited)

(dollars in thousands)

	Investment Securities Available for Sale, at Fair Value
	June 30, 2017		March 31, 2017		December 31, 2016		September 30, 2016		June 30, 2016
U.S. Treasury securities	$	100	$	100	$	200,097	$	101	$	102
Obligations of the U.S. Government and agencies		126,468		100,476		82,198		76,598		86,134
State & political subdivisions - tax-free		26,958		30,416		33,005		36,735		39,047
State & political subdivisions - taxable		524		524		525		529		532
Mortgage-backed securities		230,617		197,420		185,951		184,919		186,354
Collateralized mortgage obligations		42,549		45,476		48,694		51,344		36,702
Other debt securities		1,099		1,299		1,299		1,450		1,450
Bond mutual funds		11,956		11,920		11,895		11,847		11,774
Other investments		3,416		3,397		3,332		3,387		3,375
Total	$	443,687	$	391,028	$	566,996	$	366,910	$	365,470

	Unrealized Gain (Loss) on Investment Securities Available for Sale
	June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016			June 30, 2016
U.S. Treasury securities	$	-		$	-		$	3		$	-		$	1
Obligations of the U.S. Government and agencies		(699	)		(803	)		(913	)		946			1,183
State & political subdivisions - tax-free		11			(10	)		(96	)		131			240
State & political subdivisions - taxable		1			1			2			5			8
Mortgage-backed securities		480			196			(47	)		3,801			3,958
Collateralized mortgage obligations		(662	)		(777	)		(794	)		253			496
Other debt securities		(1	)		(1	)		(1	)		-			-
Bond mutual funds		-			(36	)		(61	)		(109	)		(182	)
Other investments		203			132			13			34			(66	)
Total	$	(667	)	$	(1,298	)	$	(1,894	)	$	5,061		$	5,638

	Deposits
	June 30, 2017		March 31, 2017		December 31, 2016		September 30, 2016		June 30, 2016
Interest-bearing deposits:
Interest-bearing checking	$	381,345	$	395,131	$	379,424	$	333,055	$	333,425
Money market		729,859		757,071		761,657		725,116		718,144
Savings		254,903		255,791		232,193		228,391		217,877
Wholesale non-maturity deposits		54,675		69,471		74,272		64,664		58,690
Wholesale time deposits		120,524		68,164		73,037		99,052		113,274
Retail time deposits		321,982		319,381		322,912		309,584		279,067
Total interest-bearing deposits		1,863,288		1,865,009		1,843,495		1,759,862		1,720,477
Noninterest-bearing deposits		818,475		771,556		736,180		718,015		689,214
Total deposits	$	2,681,763	$	2,636,565	$	2,579,675	$	2,477,877	$	2,409,691

Bryn Mawr Bank Corporation

Detailed Income Statements (unaudited)

(dollars in thousands, except per share data)

	For the Three Months Ended															For the Six Months Ended
	June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016			June 30, 2016			June 30, 2017			June 30, 2016
Interest income:
Interest and fees on loans and leases	$	29,143		$	28,482		$	28,230		$	27,931		$	27,679		$	57,625		$	54,375
Interest on cash and cash equivalents		35			66			53			27			42			101			88
Interest on investment securities		2,059			1,778			1,639			1,556			1,565			3,837			3,092
Total interest income		31,237			30,326			29,922			29,514			29,286			61,563			57,555
Interest expense:
Interest on deposits		1,983			1,828			1,780			1,575			1,402			3,811			2,478
Interest on short-term borrowings		237			27			22			34			20			264			37
Interest on FHLB advances and other borrowings		682			698			760			818			867			1,380			1,775
Interest on subordinated notes		370			370			370			370			370			740			736
Total interest expense		3,272			2,923			2,932			2,797			2,659			6,195			5,026
Net interest income		27,965			27,403			26,990			26,717			26,627			55,368			52,529
Provision for loan and lease losses (the "Provision")		(83	)		291			1,059			1,412			445			208			1,855
Net interest income after Provision		28,048			27,112			25,931			25,305			26,182			55,160			50,674
Noninterest income:
Fees for wealth management services		9,807			9,303			9,327			9,100			9,431			19,110			18,263
Insurance revenue		943			763			715			886			845			1,706			2,121
Capital markets revenue		953			-			-			-			-			953			-
Service charges on deposits		630			647			688			688			713			1,277			1,415
Loan servicing and other fees		519			503			411			497			539			1,022			1,031
Net gain on sale of loans		520			629			607			879			857			1,149			1,656
Net gain (loss) on sale of investment securities available for sale		-			1			9			(28	)		(43	)		1			(58	)
Net (loss) gain on sale of other real estate owned		(12	)		-			-			-			-			(12	)		(76	)
Dividends on FHLB and FRB stocks		218			214			309			277			263			432			477
Other operating income		1,207			1,167			1,182			1,487			1,176			2,374			2,199
Total noninterest income		14,785			13,227			13,248			13,786			13,781			28,012			27,028
Noninterest expense:
Salaries and wages		13,580			12,450			11,855			11,621			12,197			26,030			23,935
Employee benefits		2,475			2,559			2,207			2,420			2,436			5,034			4,921
Loss on pension termination		-			-			-			-			-			-
Occupancy and bank premises		2,247			2,526			2,407			2,349			2,367			4,773			4,855
Branch lease termination expense		-			-			-			-			-			-
Furniture, fixtures and equipment		1,869			1,974			1,869			1,837			1,895			3,843			3,814
Advertising		405			386			391			334			372			791			656
Amortization of intangible assets		688			693			830			888			889			1,381			1,780
Impairment of intangible assets		-			-			-			-			-			-
Impairment (recovery) of mortgage servicing rights ("MSRs")		43			3			(580	)		29			599			46			682
Due diligence, merger-related and merger integration expenses		1,236			511			-			-			-			1,747			-
Professional fees		1,049			711			963			937			946			1,760			1,759
Pennsylvania bank shares tax		297			664			(204	)		675			640			961			1,278
Information technology		820			874			857			881			875			1,694			1,923
Other operating expenses		3,786			3,309			4,492			3,400			3,004			7,095			5,707
Total noninterest expense		28,495			26,660			25,087			25,371			26,220			55,155			51,310
Income before income taxes		14,338			13,679			14,092			13,720			13,743			28,017			26,392
Income tax expense		4,905			4,635			4,684			4,346			4,810			9,540			9,137
Net income	$	9,433		$	9,044		$	9,408		$	9,374		$	8,933		$	18,477		$	17,255
Per share data:
Weighted average shares outstanding		16,984,563			16,954,132			16,916,705			16,860,727			16,812,219			16,969,431			16,830,211
Dilutive common shares		248,204			228,557			247,970			211,631			215,200			238,381			123,905
Adjusted weighted average diluted shares		17,232,767			17,182,689			17,164,675			17,072,358			17,027,419			17,207,812			16,954,116
Basic earnings (loss) per common share	$	0.56		$	0.53		$	0.56		$	0.56		$	0.53		$	1.09		$	1.03
Diluted earnings (loss) per common share	$	0.55		$	0.53		$	0.55		$	0.55		$	0.52		$	1.07		$	1.02
Dividend declared per share	$	0.21		$	0.21		$	0.21		$	0.21		$	0.20		$	0.42		$	0.40
Effective tax rate		34.21	%		33.88	%		33.24	%		31.68	%		35.09	%		34.05	%		34.62	%

Bryn Mawr Bank Corporation

Tax-Equivalent Net Interest Margin (unaudited)

(dollars in thousands, except per share data)

	For The Three Months Ended																																													For The Six Months Ended
	June 30, 2017									March 31, 2017									December 31, 2016									September 30, 2016									June 30, 2016									June 30, 2017									June 30, 2016
(dollars in thousands)	Average Balance			Interest Income/ Expense			Average Rates Earned/ Paid			Average Balance			Interest Income/ Expense			Average Rates Earned/ Paid			Average Balance			Interest Income/ Expense			Average Rates Earned/ Paid			Average Balance			Interest Income/ Expense			Average Rates Earned/ Paid			Average Balance			Interest Income/ Expense			Average Rates Earned/ Paid			Average Balance			Interest Income/ Expense			Average Rates Earned/ Paid			Average Balance			Interest Income/ Expense			Average Rates Earned/ Paid

Assets:
Interest-bearing deposits with other banks	$	26,266		$	35			0.53	%	$	39,669		$	66			0.67	%	$	55,298		$	53			0.38	%	$	33,532		$	27			0.32	%	$	44,950		$	42			0.38	%	$	32,931		$	101			0.62	%	$	42,000		$	88			0.42	%
Investment securities - available for sale:
Taxable		391,112			1,940			1.99	%		354,229			1,653			1.89	%		344,931			1,498			1.73	%		329,293			1,423			1.72	%		325,893			1,433			1.77	%		372,772			3,620			1.96	%		321,123			2,832			1.77	%
Tax-exempt		28,970			150			2.08	%		31,485			164			2.11	%		34,985			175			1.99	%		37,893			189			1.98	%		39,193			187			1.92	%		30,221			314			2.10	%		39,925			378			1.90	%
Total investment securities - available for sale		420,082			2,090			2.00	%		385,714			1,817			1.91	%		379,916			1,673			1.75	%		367,186			1,612			1.75	%		365,086			1,620			1.78	%		402,993			3,934			1.97	%		361,048			3,210			1.79	%

Investment securities - held to maturity		5,181			5			0.39	%		3,702			7			0.77	%		2,889			7			0.96	%		2,907			6			0.82	%		2,427			4			0.66	%		4,446			4			0.18	%		1,214			4			0.66	%
Investment securities - trading		4,137			13			1.26	%		3,890			8			0.83	%		3,853			16			1.65	%		3,523			2			0.23	%		3,640			2			0.22	%		4,014			2			0.10	%		3,793			2			0.11	%

Loans and leases *		2,615,610			29,309			4.49	%		2,555,677			28,622			4.54	%		2,517,967			28,354			4.48	%		2,476,972			28,032			4.50	%		2,412,643			27,761			4.63	%		2,585,809			57,931			4.52	%		2,360,613			54,539			4.65	%

Total interest-earning assets		3,071,276			31,452			4.11	%		2,988,652			30,520			4.14	%		2,959,923			30,103			4.05	%		2,884,120			29,679			4.09	%		2,828,746			29,429			4.18	%		3,030,193			61,972			4.12	%		2,768,668			57,843			4.20	%

Cash and due from banks		15,727									14,942									16,127									16,228									16,413									15,336									16,457
Less: allowance for loan and lease losses		(17,549	)								(17,580	)								(17,858	)								(17,257	)								(17,271	)								(17,564	)								(16,755	)
Other assets		263,853									258,046									257,676									258,928									262,065									260,963									263,180

Total assets	$	3,333,307								$	3,244,060								$	3,215,868								$	3,142,019								$	3,089,953								$	3,288,928								$	3,031,550

Liabilities:

Interest-bearing deposits:
Savings, NOW and market rate deposits	$	1,375,949		$	813			0.24	%	$	1,388,561		$	756			0.22	%	$	1,328,577		$	686			0.21	%	$	1,286,404		$	641			0.20	%	$	1,273,964		$	589			0.19	%	$	1,382,220		$	1,569			0.23	%	$	1,276,797		$	1,158			0.18	%
Wholesale deposits		154,424			378			0.98	%		143,461			317			0.90	%		156,541			319			0.81	%		164,706			327			0.79	%		196,517			361			0.74	%		148,973			695			0.94	%		166,859			594			0.72	%
Retail time deposits		323,287			792			0.98	%		320,172			755			0.96	%		324,158			775			0.95	%		278,579			607			0.87	%		246,771			452			0.74	%		321,738			1,547			0.97	%		231,795			726			0.63	%
Total interest-bearing deposits		1,853,660			1,983			0.43	%		1,852,194			1,828			0.40	%		1,809,276			1,780			0.39	%		1,729,689			1,575			0.36	%		1,717,252			1,402			0.33	%		1,852,931			3,811			0.41	%		1,675,451			2,478			0.30	%

Borrowings:
Short-term borrowings		98,869			237			0.96	%		47,603			27			0.23	%		40,629			22			0.22	%		40,966			34			0.33	%		32,328			20			0.25	%		73,378			264			0.73	%		33,243			37			0.22	%
Long-term FHLB advances		171,567			682			1.59	%		182,507			698			1.55	%		198,454			760			1.52	%		218,920			818			1.49	%		236,248			867			1.48	%		177,006			1,380			1.57	%		243,131			1,775			1.47	%
Subordinated notes		29,550			370			5.02	%		29,537			370			5.08	%		29,523			370			4.99	%		29,509			370			4.99	%		29,496			370			5.05	%		29,544			740			5.05	%		29,489			736			5.02	%
Total borrowings		299,986			1,289			1.72	%		259,647			1,095			1.71	%		268,606			1,152			1.71	%		289,395			1,222			1.68	%		298,072			1,257			1.70	%		279,928			2,384			1.72	%		305,863			2,548			1.68	%

Total interest-bearing liabilities		2,153,646			3,272			0.61	%		2,111,841			2,923			0.56	%		2,077,882			2,932			0.56	%		2,019,084			2,797			0.55	%		2,015,324			2,659			0.53	%		2,132,859			6,195			0.59	%		1,981,314			5,026			0.51	%

Noninterest-bearing deposits		755,597									711,794									724,465									716,581									675,710									733,817									653,379
Other liabilities		34,348									38,211									35,478									33,400									32,804									36,266									33,363
Total noninterest-bearing liabilities		789,945									750,005									759,943									749,981									708,514									770,083									686,742

Total liabilities		2,943,591									2,861,846									2,837,825									2,769,065									2,723,838									2,902,942									2,668,056

Shareholders' equity		389,716									382,214									378,043									372,954									366,115									385,986									363,494

Total liabilities and shareholders' equity	$	3,333,307								$	3,244,060								$	3,215,868								$	3,142,019								$	3,089,953								$	3,288,928								$	3,031,550

Interest income to earning assets								4.11	%								4.14	%								4.05	%								4.09	%								4.18	%								4.12	%								4.20	%

Net interest spread								3.50	%								3.58	%								3.49	%								3.54	%								3.65	%								3.53	%								3.69	%
Effect of noninterest-bearing sources								0.18	%								0.16	%								0.16	%								0.17	%								0.16	%								0.18	%								0.15	%

Tax-equivalent net interest margin				$	28,180			3.68	%				$	27,597			3.74	%				$	27,171			3.65	%				$	26,882			3.71	%				$	26,770			3.81	%				$	55,777			3.71	%				$	52,817			3.84	%

Tax-equivalent adjustment				$	215			0.02	%				$	194			0.02	%				$	181			0.02	%				$	165			0.02	%				$	143			0.02	%				$	409			0.02	%				$	288			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				$	402			0.06	%				$	726			0.12	%				$	742			0.12	%				$	578			0.09	%				$	1,076			0.18	%				$	1,128			0.09	%				$	2,029			0.17	%
Retail time deposits					(18	)		-0.02	%					(19	)		-0.02	%					(19	)		-0.02	%					(29	)		-0.04	%					(61	)		-0.10	%					(37	)		-0.02	%					(171	)		-0.15	%
Short-term borrowings					-			0.00	%					-			0.00	%					-			0.00	%					-			0.00	%					-			0.00	%					-			0.00	%					(12	)		-0.07	%
Long-term FHLB advances and other borrowings					(30	)		-0.07	%					(30	)		-0.07	%					(30	)		-0.06	%					(30	)		-0.05	%					(30	)		-0.05	%					(60	)		-0.07	%					(60	)		-0.05	%
Net interest income from fair value marks				$	450								$	775								$	791								$	637								$	1,167								$	1,225								$	2,272
Purchase accounting effect on tax-equivalent margin								0.06	%								0.11	%								0.11	%								0.09	%								0.17	%								0.08	%								0.17	%

* 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 Six Months Ended
	June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016			June 30, 2016			June 30, 2017			June 30, 2016
Reconciliation of Net Income to Net Income (core):
Net income (loss) (a GAAP measure)	$	9,433		$	9,044		$	9,408		$	9,374		$	8,933		$	18,477		$	17,255
Less: Tax-effected non-core noninterest income:
Loss (gain) on sale of investment securities available for sale		-			(1	)		(6	)		18			28			(1	)		38
Add: Tax-effected non-core noninterest expense items:
Loss on pension termination		-			-			-			-			-			-			-
Severance expense (Salaries and wages)		-			-			-			-			-			-			-
Branch lease termination expense		-			-			-			-			-			-			-
Debt and swap prepayment penalty (Other operating expenses)		-			-			-			-			-			-			-
Impairment of intangible assets		-			-			-			-			-			-			-
Due diligence, merger-related and merger integration expenses		803			332			-			-			-			1,136			-
Net income (core) (a non-GAAP measure)	$	10,236		$	9,375		$	9,402		$	9,392		$	8,961		$	19,612		$	17,293

Calculation of Basic and Diluted Earnings per Common Share (core):
Weighted average common shares outstanding		16,984,563			16,954,132			16,916,705			16,860,727			16,812,219			16,969,431			16,830,211
Dilutive common shares		248,204			228,557			247,970			211,631			215,200			238,381			123,905
Adjusted weighted average diluted shares		17,232,767			17,182,689			17,164,675			17,072,358			17,027,419			17,207,812			16,954,116
Basic earnings per common share (core) (a non-GAAP measure)	$	0.60		$	0.55		$	0.56		$	0.56		$	0.53		$	1.16		$	1.03
Diluted earnings per common share (core) (a non-GAAP measure)	$	0.59		$	0.55		$	0.55		$	0.55		$	0.53		$	1.14		$	1.02

Calculation of Return on Average Tangible Equity:
Net income (loss)	$	9,433		$	9,044		$	9,408		$	9,374		$	8,933		$	18,477		$	17,255
Add: Tax-effected amortization and impairment of intangible assets		447			450			540			577			578			898			1,157
Net tangible income (numerator)	$	9,880		$	9,494		$	9,948		$	9,951		$	9,511		$	19,375		$	18,412

Average shareholders' equity	$	389,716		$	382,214		$	378,043		$	372,954		$	366,115		$	385,986		$	363,494
Less: Average goodwill and intangible assets		(126,537	)		(124,884	)		(125,614	)		(126,505	)		(127,402	)		(125,715	)		(127,849	)
Net average tangible equity (denominator)	$	263,179		$	257,330		$	252,429		$	246,449		$	238,713		$	260,271		$	235,645

Return on tangible equity (a non-GAAP measure)		15.06	%		14.96	%		15.68	%		16.06	%		16.02	%		15.01	%		15.71	%

Calculation of Tangible Equity Ratio:
Total shareholders' equity	$	394,977		$	388,095		$	381,127		$	378,459		$	372,467
Less: Goodwill and intangible assets		(129,211	)		(124,629	)		(125,170	)		(126,000	)		(126,888	)
Net tangible equity (numerator)	$	265,766		$	263,466		$	255,957		$	252,459		$	245,579

Total assets	$	3,438,219		$	3,292,617		$	3,421,530		$	3,174,080		$	3,090,090
Less: Goodwill and intangible assets		(129,211	)		(124,629	)		(125,170	)		(126,000	)		(126,888	)
Tangible assets (denominator)	$	3,309,008		$	3,167,988		$	3,296,360		$	3,048,080		$	2,963,202

Tangible equity ratio		8.03	%		8.32	%		7.76	%		8.28	%		8.29	%

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 Six Months Ended
	June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016			June 30, 2016			June 30, 2017			June 30, 2016
Calculation of Efficiency Ratio:
Noninterest expense	$	28,495		$	26,660		$	25,087		$	25,371		$	26,220		$	55,155		$	51,310
Less: certain noninterest expense items*:
Loss on pension termination		-			-			-			-			-			-			-
Severance expense (Salaries and wages)		-			-			-			-			-			-			-
Branch lease termination expense		-			-			-			-			-			-			-
Debt and swap prepayment penalty (Other operating expenses)		-			-			-			-			-			-			-
Amortization of intangibles		(688	)		(693	)		(830	)		(888	)		(889	)		(1,381	)		(1,780	)
Impairment of intangible assets		-			-			-			-			-			-			-
Due diligence, merger-related and merger integration expenses		(1,235	)		(511	)		-			-			-			(1,747	)		-
Noninterest expense (adjusted) (numerator)	$	26,572		$	25,456		$	24,257		$	24,483		$	25,331		$	52,027		$	49,530

Noninterest income	$	14,785		$	13,227		$	13,248		$	13,786		$	13,781		$	28,012		$	27,028
Less: non-core noninterest income items:
Loss (gain) on sale of investment securities available for sale		-			(2	)		(9	)		28			43			(1	)		58
Noninterest income (core)	$	14,785		$	13,225		$	13,239		$	13,814		$	13,824		$	28,011		$	27,086
Net interest income		27,965			27,403			26,990			26,717			26,627			55,368			52,529
Noninterest income (core) and net interest income (denominator)	$	42,750		$	40,628		$	40,229		$	40,531		$	40,451		$	83,379		$	79,615

Efficiency ratio		62.16	%		62.66	%		60.30	%		60.41	%		62.62	%		62.40	%		62.21	%

* 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	$	16,399		$	17,107		$	17,486		$	17,744		$	17,036
less: Allowance on acquired loans		25			38			28			28			28
Allowance on originated loans and leases	$	16,374		$	17,069		$	17,458		$	17,716		$	17,008

Total Allowance	$	16,399		$	17,107		$	17,486		$	17,744		$	17,036
Loan mark on acquired loans		11,084			11,544			12,286			13,391			14,566
Total Allowance + Loan mark	$	27,483		$	28,651		$	29,772		$	31,135		$	31,602

Total Portfolio loans and leases	$	2,666,651		$	2,555,589		$	2,535,425		$	2,493,357		$	2,423,821
less: Originated loans and leases		2,409,964			2,286,814			2,240,987			2,176,549			2,090,070
Net acquired loans	$	256,687		$	268,775		$	294,438		$	316,808		$	333,751
add: Loan mark on acquired loans		11,084			11,544			12,286			13,391			14,566
Gross acquired loans (excludes loan mark)	$	267,771		$	280,319		$	306,724		$	330,199		$	348,317
Originated loans and leases		2,409,964			2,286,814			2,240,987			2,176,549			2,090,070
Total Gross portfolio loans and leases	$	2,677,735		$	2,567,133		$	2,547,711		$	2,506,748		$	2,438,387

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