BMTC Bryn Mawr Bank Corporation

Bryn Mawr Bank Corporation (NASDAQ: BMTC) (the “Corporation”), parent of The Bryn Mawr Trust Company (the “Bank”) today reported net income of $10.7 million, or $0.53 diluted earnings per share for the three months ended March 31, 2019, as compared to net income of $17.1 million, or $0.84 diluted earnings per share, for the three months ended December 31, 2018, and $15.3 million, or $0.75 diluted earnings per share, for the three months ended March 31, 2018.

On a non-GAAP basis, core net income, which excludes one-time costs associated with our voluntary Years of Service Incentive Program (the “Incentive Program”), income tax charges incurred in connection with the Tax Cuts and Jobs Act ("Tax Reform"), due diligence and merger-related expenses and other non-core income and expense items, as detailed in the appendix to this earnings release, was $14.2 million, or $0.70 diluted earnings per share, for the three months ended March 31, 2019, as compared to $17.2 million, or $0.84 diluted earnings per share, for the three months ended December 31, 2018, and $19.3 million, or $0.94 diluted earnings per share, for the three months ended March 31, 2018. 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 excited with the start of 2019 as we continue to execute upon our long-term strategic goals,” commented Frank Leto, President and Chief Executive Officer, continuing, “Part of our long-term plan is ensuring BMT’s sustainability through proper succession planning. To facilitate the execution of this goal, the Board and executive management team created a one-time, voluntary Years of Service Incentive Program to reward certain long-tenured employees with enhanced benefits while providing BMT with the ability to manage a controlled transition process related to the leadership and knowledge held by individuals who chose to participate. We are proud to have been able to offer this Incentive Program, recognizing that it is our people who have laid the foundation on which we have succeeded for the past 130 years, and it is our people who will enable us to continue to grow and succeed in the future.”

Mr. Leto then continued, “Our first quarter financials remained strong with loan growth of $96 million, or 11% on an annualized basis from year-end, and wealth assets under management approaching $15 billion. Our capital markets team also continues to provide strong fee-based revenue, while credit quality remains strong with the first quarter provision expense primarily impacted by a single credit. With regard to the Incentive Program, we expect to realize long-term savings and recoup the cost of the Incentive Program in approximately three years. I am also pleased to announce that the Board of Directors has authorized a new stock repurchase program under which the Corporation can repurchase up to 1,000,000 shares from time to time at an aggregate purchase price not to exceed $45 million (the "New Repurchase Program"). The New Repurchase Program will become effective upon the completion of the Corporation’s existing 2015 stock repurchase program.”

The Board of Directors of the Corporation declared a quarterly dividend of $0.25 per share, payable June 1, 2019 to shareholders of record as of May 1, 2019.

SIGNIFICANT ITEMS OF NOTE

Results of Operations – First Quarter 2019 Compared to Fourth Quarter 2018

• Net income for the three months ended March 31, 2019 was $10.7 million, as compared to net income of $17.1 million for the three months ended December 31, 2018. Net interest income for the three months ended March 31, 2019 was $37.6 million, a decrease of $340 thousand over the linked quarter. The provision for loan and lease losses (the “Provision”) for the three months ended March 31, 2019 increased $1.4 million as compared to the fourth quarter of 2018. Total noninterest income increased $1.2 million, total noninterest expense increased $4.9 million, and income tax expense increased $1.0 million for the three months ended March 31, 2019, as compared to the three months ended December 31, 2018. During the first quarter of 2019, the Corporation adopted the Incentive Program which offers certain benefits to eligible employees who meet the Incentive Program requirements and voluntarily exit from service with the Corporation, the Bank or one of their subsidiaries. Noninterest expense for the first quarter of 2019 included a pre-tax, non-recurring, charge of $4.5 million related to the Incentive Program.On a non-GAAP basis, core net income, which excludes one-time costs associated with the Incentive Program, income tax charges incurred in connection with Tax Reform, due diligence and merger-related expenses and other non-core income and expense items, as detailed in the appendix to this earnings release, was $14.2 million, or $0.70 per diluted share, for the three months ended March 31, 2019, as compared to $17.2 million or $0.84 per diluted share, for the three months ended December 31, 2018. 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.
• Net interest income for the three months ended March 31, 2019 was $37.6 million, a decrease of $340 thousand over the linked quarter. Tax-equivalent net interest income for the three months ended March 31, 2019 was $37.8 million, a decrease of $338 thousand over the linked quarter. Tax-equivalent net interest income for the first quarter of 2019 was impacted by the accretion of purchase accounting fair value marks of $2.1 million as compared to $2.7 million for the linked quarter. Excluding the effects of these purchase accounting fair value marks, the adjusted tax-equivalent net interest income for the three months ended March 31, 2019 was $35.6 million, an increase of $213 thousand over the linked quarter. A reconciliation of this and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release. Items contributing to the increase adjusted for purchase accounting included increases of $1.1 million and $388 thousand in tax-equivalent interest and fees earned on loans and leases and interest earned on available for sale investment securities, respectively, partially offset by an increase of $1.3 million in interest paid on deposits for the three months ended March 31, 2019 as compared to the linked quarter ended December 31, 2018.Tax-equivalent interest and fees earned on loans and leases for the three months ended March 31, 2019 increased $571 thousand over the linked quarter. Average loans and leases for the three months ended March 31, 2019 increased $78.3 million over the linked quarter and experienced a 6 basis point increase in tax-equivalent yield.Tax-equivalent interest income on available for sale investment securities increased $388 thousand for the first quarter of 2019 as compared to the linked quarter. Average available for sale investment securities increased by $16.2 million over the linked quarter and experienced a 27 basis point tax-equivalent yield increase.Interest expense on deposits for the three months ended March 31, 2019 increased $1.0 million over the linked quarter. Average interest-bearing deposits increased $71.8 million coupled with a 16 basis point increase in the rate paid on deposits as compared to the linked quarter. The increase in interest on deposits was related to the competitive dynamics in the markets in which we operate and certain promotional interest rates offered during the quarter.Interest expense on short-term borrowings for the three months ended March 31, 2019 increased $262 thousand over the linked quarter. Average short-term borrowings increased $29.2 million coupled with a 33 basis point increase in the rate paid on short-term borrowings as compared to the linked quarter.
• The tax-equivalent net interest margin was 3.75% for the three months ended March 31, 2019 as compared to 3.79% for the linked quarter. Adjusting for the impact of the accretion of purchase accounting fair value marks, the adjusted tax-equivalent net interest margin was 3.54% for the three months ended March 31, 2019 as compared to 3.52% for the linked quarter. A reconciliation of this and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release.
• Noninterest income of $19.3 million for the three months ended March 31, 2019 increased $1.2 million as compared to the linked quarter. Contributing to the increase were increases of $1.8 million, $852 thousand, and $213 thousand in other operating income, capital markets revenue, and insurance commissions, respectively, partially offset by decreases of $1.3 million and $625 thousand in net gain on sale of loans and fees for wealth management services, respectively. The $1.8 million increase in other operating income was primarily due to a $1.6 million increase in gains on trading securities over the linked quarter due to market fluctuations affecting the Corporation's executive and director deferred compensation plan assets.
• Noninterest expense of $39.7 million for the three months ended March 31, 2019 increased $4.9 million as compared to $34.8 million for the fourth quarter of 2018. The increase on a linked quarter basis was primarily due to increases of $3.0 million, $1.2 million, and $1.0 million in salaries and wages, employee benefits, and other operating expenses, respectively. The linked quarter increase in salaries and wages and employee benefits was largely driven by the expenses from the Incentive Program.
• The Provision increased $1.3 million for the three months ended March 31, 2019 to $3.7 million, as compared to $2.4 million for the fourth quarter of 2018. During the first quarter of 2019, portfolio loans and leases increased $96.4 million. In addition, net loan and lease charge-offs increased by $926 thousand for the first quarter of 2019, as compared to the previous quarter. The 2.8% increase in loan and lease volume and 57.2% increase in net charge-offs were the primary drivers for the increase in the Provision on a linked-quarter basis. The increase in net charge-offs was primarily a result of the partial charge-off of a single commercial credit.  Nonperforming loans and leases as of March 31, 2019 totaled $19.3 million, an increase of $6.5 million from December 31, 2018. The increase in nonperforming loans was largely due to real estate collateralized loans for which management performs an impairment analysis. All nonperforming loans are carried at their net realizable value.
• The effective tax rate for the first quarter of 2019 increased significantly as compared to the fourth quarter of 2018. The increase in the effective tax rate was primarily due to a $2.6 million tax benefit recorded in the fourth quarter of 2018 for certain discrete items included on our 2017 tax return which was filed during the fourth quarter of 2018. The effective tax rate for the year ended December 31, 2018, excluding discrete income tax benefits, was 21.7%.

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

• Net income for the three months ended March 31, 2019 was $10.7 million, or $0.53 diluted earnings per share, as compared to net income of $15.3 million, or diluted earnings per share of $0.75 for the same period in 2018. Contributing to the net income decrease were increases of $3.7 million and $2.7 million in noninterest expense and the Provision, respectively.On a non-GAAP basis, core net income, which excludes one-time costs associated with the Incentive Program, income tax charges incurred in connection with Tax Reform, due diligence and merger-related expenses and other non-core income and expense items, as detailed in the appendix to this earnings release, was $14.2 million, or $0.70 per diluted share, for the three months ended March 31, 2019 as compared to $19.3 million, or $0.94 per diluted share, for the same period in 2018. 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.
• Net interest income for the three months ended March 31, 2019 was $37.6 million, an increase of $208 thousand as compared to the same period in 2018. Tax-equivalent net interest income for the three months ended March 31, 2019 was $37.8 million, an increase of $256 thousand as compared to the same period in 2018. Tax-equivalent net interest income for the first quarter of 2019 was impacted by the accretion of purchase accounting fair value marks of $2.1 million as compared to $3.0 million for the same period in 2018. Excluding the effects of these purchase accounting fair value marks, the adjusted tax-equivalent net interest income for the three months ended March 31, 2019 was $35.6 million, an increase of $1.1 million as compared to the same period in 2018. A reconciliation of this and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release. Items contributing to the increase adjusted for purchase accounting included increases of $4.8 million and $812 thousand in tax-equivalent interest and fees earned on loans and leases and interest earned on available for sale investment securities, respectively, partially offset by an increase of $4.5 million in interest paid on deposits for the three months ended March 31, 2019 as compared to the same period in 2018.Tax-equivalent interest and fees on loans and leases increased $4.1 million for the three months ended March 31, 2019 as compared to the same period in 2018. Average loans and leases for the first quarter of 2019 increased $186.5 million from the same period in 2018 and experienced a 21 basis point increase in tax-equivalent yield.Average available for sale investment securities increased by $34.3 million for the three months ended March 31, 2019 as compared to the same period in 2018 and experienced a 46 basis point tax-equivalent yield increase. The increase in average balances and yield on available for sale investment securities resulted in an $812 thousand increase in tax-equivalent interest income on available for sale investment securities for the first quarter of 2019 as compared to the same period in 2018.Partially offsetting the effect on net interest income associated with the increase in average loans and leases and available for sale investment securities was a $4.6 million increase in interest expense on deposits for the three months ended March 31, 2019 as compared to the same period in 2018. Average interest-bearing deposits increased by $238.7 million, coupled with a 65 basis point increase in rate paid for the first quarter of 2019 as compared to the same period in 2018.
• The tax-equivalent net interest margin was 3.75% for the three months ended March 31, 2019 as compared to 3.94% for the same period in 2018. Adjusting for the impact of the accretion of purchase accounting fair value marks, the adjusted tax-equivalent net interest margin was 3.54% and 3.62% for three months ended March 31, 2019 and 2018, respectively. A reconciliation of this and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release.
• Noninterest income of $19.3 million for the three months ended March 31, 2019 decreased by $283 thousand as compared to the same period in 2018. Contributing to this decrease were decreases of $1.5 million, $200 thousand, and $199 thousand in other operating income, net gain on sale of other real estate owned, and net gain on sale of loans, respectively. The decrease in other operating income was primarily due to a $2.2 million decrease in recoveries of purchase accounting fair value marks resulting from pay-offs of previously acquired credit-impaired loans for the three months ended March 31, 2019 as compared to the same period in 2018. Partially offsetting the decrease in noninterest income was an increase of $1.6 million in capital markets revenue which was primarily due to increased volume of capital market transactions.
• Noninterest expense of $39.7 million for the three months ended March 31, 2019 increased $3.7 million as compared to the same period in 2018. Contributing to the $3.7 million increase were increases of $4.9 million, $1.2 million, $572 thousand, $491 thousand, and $458 thousand in salaries and wages, other operating expenses, professional fees, furniture, fixtures and equipment expenses, and employee benefits, respectively. The increases in salaries and wages and employee benefits was largely driven by the expenses incurred in connection with the Incentive Program. Partially offsetting these increases in noninterest expense was a decrease of $4.3 million in due diligence, merger-related and merger integration expenses for the three months ended March 31, 2019 as compared to the same period in 2018.
• The Provision increased $2.7 million for the three months ended March 31, 2019 to $3.7 million, as compared to $1.0 million for the same period in 2018. In addition, net loan and lease charge-offs increased by $1.7 million for the first quarter of 2019, as compared to the same period in 2018. This 6.6% increase in loan and lease volume and 185.1% increase in net charge-offs were the primary drivers for the increase in the Provision on a year-over-year basis. Nonperforming loans and leases as of March 31, 2019 totaled $19.3 million, an increase of $11.8 million from March 31, 2018. The increase in nonperforming loans was comprised primarily of real estate collateralized loans for which management performs impairment analyses. All nonperforming loans are carried at their net realizable value.
• The effective tax rate for the first quarter of 2019 decreased to 20.57% as compared to 23.25% for the first quarter of 2018. The decrease was primarily due to $590 thousand of discrete tax charges included in tax expense in the first quarter of 2018 related to the re-measurement of net deferred tax assets as a result of Tax Reform, related to revised fair value adjustments associated with the merger with Royal Bancshares of Pennsylvania, Inc. in December 2017.

Financial Condition – March 31, 2019 Compared to December 31, 2018

• Total assets as of March 31, 2019 were $4.63 billion, a decrease of $20.5 million from December 31, 2018. The decrease was primarily due to the decrease in available for sale investment securities discussed in the bullet point below, partially offset by the increase in portfolio loans and leases discussed in the bullet point below, as well as $44.0 million of operating lease right-of-use assets as of March 31, 2019 included on the balance sheet as a result of a recently adopted accounting pronouncement.
• Available for sale investment securities as of March 31, 2019 totaled $560.0 million, a decrease of $177.5 million from December 31, 2018. The decrease was primarily related to the maturing, in January 2019, of $200.0 million short-term U.S. Treasury securities, partially offset by a $33.0 million increase in mortgage-backed securities.
• Total portfolio loans and leases of $3.52 billion as of March 31, 2019 increased by $96.4 million from December 31, 2018, an increase of 2.8%. Increases of $89.3 million, $11.8 million, $10.1 million and $8.0 million in commercial mortgages, leases, commercial and industrial loans and residential mortgages, respectively, were offset by decreases of $21.3 million and $2.6 million in construction loans and home equity loans and lines, respectively.
• The Allowance as of March 31, 2019 was $20.6 million, or 0.59% of portfolio loans and leases, as compared to $19.4 million, or 0.57% of portfolio loans and leases as of December 31, 2018. In addition to the ratio of Allowance to portfolio loans and leases, management also calculates two non-GAAP measures: the Allowance for originated loans and leases as a percentage of originated loans and leases, which was 0.68% as of March 31, 2019, as compared to 0.67% as of December 31, 2018, and the Allowance plus the remaining loan mark as a percentage of gross loans, which was 1.03% as of March 31, 2019, as compared to 1.08% as of December 31, 2017. A reconciliation of these and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release.
• Deposits of $3.64 billion as of March 31, 2019 increased $38.5 million from December 31, 2018. Increases of $98.7 million and $18.5 million in money market and savings accounts, respectively, were partially offset by decreases of $40.9 million, $19.3 million, $11.2 million, and $7.3 million in wholesale deposits, noninterest-bearing demand accounts, retail time deposits and wholesale non-maturity deposits, respectively.
• Borrowings of $299.8 million as of March 31, 2019, which include short-term borrowings, long-term FHLB advances, subordinated notes and junior subordinated debentures, decreased $128.0 million from December 31, 2018, primarily due to decreases in short-term borrowings.
• Wealth assets under management, administration, supervision and brokerage totaled $14.74 billion as of March 31, 2019, an increase of $1.31 billion from December 31, 2018.
• The capital ratios for the Bank and the Corporation, as of March 31, 2019, as shown in the attached tables, indicate levels above the regulatory minimum to be considered “well capitalized.”

FORWARD LOOKING STATEMENTS AND SAFE HARBORThis 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 successfully integrate acquired businesses, the possibility that integration 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; litigation; cybersecurity events; the inability of key third-party providers to perform their obligations to us; our ability to attract and retain key personnel; competition in our marketplace; war or terrorist activities; material differences in the actual financial results, cost savings and revenue enhancements associated with our acquisitions; and other factors as described in our securities filings. All forward-looking statements and information set forth herein are based on management’s current beliefs and assumptions as of the date hereof and speak only as of the date they are made.  The Corporation does not undertake to update forward-looking statements.

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

FOR MORE INFORMATION CONTACT:

Frank Leto, President, CEO610-581-4730Mike Harrington, CFO610-526-2466

Bryn Mawr Bank CorporationSummary Financial Information (unaudited)(dollars in thousands, except per share data)

	As of or For the Three Months Ended
	March 31, 2019				December 31, 2018				September 30, 2018				June 30, 2018				March 31, 2018
Consolidated Balance Sheet (selected items)
Interest-bearing deposits with banks	$	29,449			$	34,357			$	35,233			$	39,924			$	24,589
Investment securities	578,629				753,628				545,320				547,088				550,199
Loans held for sale	2,884				1,749				4,111				4,204				5,522
Portfolio loans and leases	3,523,514				3,427,154				3,381,475				3,389,501				3,305,795
Allowance for loan and lease losses ("ALLL")	(20,616		)		(19,426		)		(18,684		)		(19,398		)		(17,662		)
Goodwill and other intangible assets	206,006				207,467				208,165				208,139				207,287
Total assets	4,631,993				4,652,485				4,388,442				4,394,203				4,300,376
Deposits - interest-bearing	2,755,307				2,697,468				2,522,863				2,466,529				2,452,421
Deposits - non-interest-bearing	882,310				901,619				834,363				892,386				863,118
Short-term borrowings	124,214				252,367				226,498				227,059				173,704
Long-term FHLB advances	55,407				55,374				72,841				87,808				107,784
Subordinated notes	98,571				98,526				98,482				98,491				98,448
Jr. subordinated debentures	21,622				21,580				21,538				21,497				21,456
Total liabilities	4,056,886				4,087,781				3,837,017				3,851,700				3,767,315
Total shareholders' equity	575,107				564,704				551,425				542,503				533,061
Average Balance Sheet (selected items)
Interest-bearing deposits with banks	32,742				38,957				37,467				37,215				38,044
Investment securities	569,915				554,265				546,998				549,249				535,471
Loans held for sale	1,214				2,005				4,932				4,413				2,848
Portfolio loans and leases	3,476,525				3,397,479				3,374,767				3,348,926				3,288,364
Total interest-earning assets	4,080,396				3,992,706				3,964,164				3,939,803				3,864,727
Goodwill and intangible assets	206,716				207,893				207,880				208,039				205,529
Total assets	4,545,129				4,413,000				4,376,148				4,344,541				4,246,180
Deposits - interest-bearing	2,674,194				2,602,412				2,493,213				2,489,296				2,435,491
Short-term borrowings	157,652				128,429				208,201				205,323				172,534
Long-term FHLB advances	55,385				67,363				81,460				102,023				123,920
Subordinated notes	98,542				98,497				98,457				98,463				98,430
Jr. subordinated debentures	21,595				21,553				21,511				21,470				21,430
Total interest-bearing liabilities	3,007,368				2,918,254				2,902,842				2,916,575				2,851,805
Total liabilities	3,973,043				3,856,694				3,828,241				3,810,640				3,719,746
Total shareholders' equity	572,086				556,306				547,907				533,901				526,434

	As of or For the Three Months Ended
	March 31, 2019				December 31, 2018				September 30, 2018				June 30, 2018				March 31, 2018
Income Statement
Net interest income	$	37,647			$	37,987			$	36,729			$	37,316			$	37,439
Provision for loan and lease losses	3,736				2,362				664				3,137				1,030
Noninterest income	19,253				18,097				18,274				20,075				19,536
Noninterest expense	39,724				34,845				33,592				35,836				36,030
Income tax expense	2,764				1,746				4,066				3,723				4,630
Net income	10,676				17,131				16,681				14,695				15,285
Net (loss) income attributable to noncontrolling interest	(1		)		(5		)		(1		)		7				(1		)
Net income attributable to Bryn Mawr Bank Corporation	10,677				17,136				16,682				14,688				15,286
Basic earnings per share	0.53				0.85				0.82				0.73				0.76
Diluted earnings per share	0.53				0.84				0.82				0.72				0.75
Net income (core) (1)	14,230				17,167				17,140				17,031				19,282
Basic earnings per share (core) (1)	0.71				0.85				0.85				0.84				0.95
Diluted earnings per share (core) (1)	0.70				0.84				0.84				0.83				0.94
Dividends paid or accrued per share	0.25				0.25				0.25				0.22				0.22
Profitability Indicators
Return on average assets	0.95		%		1.54		%		1.51		%		1.36		%		1.46		%
Return on average equity	7.57		%		12.22		%		12.08		%		11.03		%		11.78		%
Return on tangible equity(1)	12.65		%		20.37		%		20.25		%		18.90		%		20.15		%
Return on tangible equity (core)(1)	16.59		%		20.40		%		20.78		%		21.78		%		25.19		%
Return on average assets (core)(1)	1.27		%		1.54		%		1.55		%		1.57		%		1.84		%
Return on average equity (core)(1)	10.09		%		12.24		%		12.41		%		12.79		%		14.85		%
Tax-equivalent net interest margin	3.75		%		3.79		%		3.69		%		3.81		%		3.94		%
Efficiency ratio(1)	60.26		%		60.35		%		58.75		%		55.57		%		54.12		%
Share Data
Closing share price	$	36.13			$	34.40			$	46.90			$	46.30			$	43.95
Book value per common share	$	28.52			$	28.01			$	27.18			$	26.80			$	26.35
Tangible book value per common share	$	18.34			$	17.75			$	16.95			$	16.55			$	16.14
Price / book value	126.68		%		122.81		%		172.55		%		172.76		%		166.79		%
Price / tangible book value	197.00		%		193.80		%		276.70		%		279.74		%		272.35		%
Weighted average diluted shares outstanding	20,271,661				20,321,283				20,438,376				20,413,578				20,450,494
Shares outstanding, end of period	20,167,729				20,163,816				20,291,416				20,242,893				20,229,896
Wealth Management Information:
Wealth assets under mgmt, administration, supervision and brokerage (2)	$	14,736,512			$	13,429,544			$	13,913,265			$	13,404,723			$	13,146,926
Fees for wealth management services	$	10,392			$	11,017			$	10,343			$	10,658			$	10,308

	As of or For the Three Months Ended
	March 31, 2019				December 31, 2018				September 30, 2018				June 30, 2018				March 31, 2018
Capital Ratios(3)
Bryn Mawr Trust Company ("BMTC")
Tier I capital to risk weighted assets ("RWA")	11.30		%		11.42		%		11.55		%		11.34		%		11.29		%
Total capital to RWA	11.87		%		11.99		%		12.10		%		11.91		%		11.82		%
Tier I leverage ratio	9.48		%		9.48		%		9.47		%		9.49		%		9.39		%
Tangible equity ratio (1)	9.34		%		8.95		%		9.29		%		9.27		%		9.19		%
Common equity Tier I capital to RWA	11.30		%		11.42		%		11.55		%		11.34		%		11.29		%
Bryn Mawr Bank Corporation ("BMBC")
Tier I capital to RWA	10.72		%		10.92		%		10.90		%		10.46		%		10.46		%
Total capital to RWA	14.00		%		14.30		%		14.33		%		13.87		%		13.93		%
Tier I leverage ratio	8.99		%		9.06		%		8.94		%		8.75		%		8.71		%
Tangible equity ratio (1)	8.35		%		8.05		%		8.23		%		8.00		%		7.98		%
Common equity Tier I capital to RWA	10.14		%		10.32		%		10.29		%		9.86		%		9.85		%
Asset Quality Indicators
Net loan and lease charge-offs ("NCO"s)	$	2,546			$	1,620			$	1,378			$	1,401			$	893
Nonperforming loans and leases ("NPL"s)	$	19,283			$	12,820			$	8,990			$	9,448			$	7,533
Other real estate owned ("OREO")	84				417				529				531				300
Total nonperforming assets ("NPA"s)	$	19,367			$	13,237			$	9,519			$	9,979			$	7,833
Nonperforming loans and leases 30 or more days past due	$	8,489			$	7,765			$	4,906			$	6,749			$	5,775
Performing loans and leases 30 to 89 days past due	6,432				5,464				9,145				10,378				6,547
Performing loans and leases 90 or more days past due	—				—				—				—				—
Total delinquent loans and leases	$	14,921			$	13,229			$	14,051			$	17,127			$	12,322
Delinquent loans and leases to total loans and leases	0.42		%		0.39		%		0.42		%		0.50		%		0.37		%
Delinquent performing loans and leases to total loans and leases	0.18		%		0.16		%		0.27		%		0.31		%		0.20		%
NCOs / average loans and leases (annualized)	0.30		%		0.19		%		0.16		%		0.17		%		0.11		%
NPLs / total portfolio loans and leases	0.55		%		0.37		%		0.27		%		0.28		%		0.23		%
NPAs / total loans and leases and OREO	0.55		%		0.39		%		0.28		%		0.29		%		0.24		%
NPAs / total assets	0.42		%		0.28		%		0.22		%		0.23		%		0.18		%
ALLL / NPLs	106.91		%		151.53		%		207.83		%		205.31		%		234.46		%
ALLL / portfolio loans	0.59		%		0.57		%		0.55		%		0.57		%		0.53		%
ALLL for originated loans and leases / Originated loans and leases (1)	0.68		%		0.67		%		0.68		%		0.71		%		0.69		%
(Total ALLL + Loan mark) / Total Gross portfolio loans and leases (1)	1.03		%		1.08		%		1.28		%		1.35		%		1.50		%
Troubled debt restructurings ("TDR"s) included in NPLs	$	4,057			$	1,217			$	1,208			$	1,044			$	1,125
TDRs in compliance with modified terms	5,149				9,745				4,316				4,117				5,235
Total TDRs	$	9,206			$	10,962			$	5,524			$	5,161			$	6,360

1. Non-GAAP measure - see Appendix for Non-GAAP to GAAP reconciliation.
2. Brokerage assets represent assets held at a registered broker dealer under a clearing agreement.
3. Capital Ratios for the current quarter are to be considered preliminary until the Call Reports are filed.

Bryn Mawr Bank CorporationDetailed Balance Sheets (unaudited)(dollars in thousands)

	March 31, 2019				December 31, 2018				September 30, 2018				June 30, 2018				March 31, 2018
Assets
Cash and due from banks	$	13,656			$	14,099			$	10,121			$	7,318			$	7,804
Interest-bearing deposits with banks	29,449				34,357				35,233				39,924				24,589
Cash and cash equivalents	43,105				48,456				45,354				47,242				32,393
Investment securities, available for sale	559,983				737,442				528,064				531,075				534,103
Investment securities, held to maturity	10,457				8,684				8,916				7,838				7,885
Investment securities, trading	8,189				7,502				8,340				8,175				8,211
Loans held for sale	2,884				1,749				4,111				4,204				5,522
Portfolio loans and leases, originated	3,032,270				2,885,251				2,752,160				2,700,815				2,564,827
Portfolio loans and leases, acquired	491,244				541,903				629,315				688,686				740,968
Total portfolio loans and leases	3,523,514				3,427,154				3,381,475				3,389,501				3,305,795
Less: Allowance for losses on originated loan and leases	(20,519		)		(19,329		)		(18,612		)		(19,181		)		(17,570		)
Less: Allowance for losses on acquired loan and leases	(97		)		(97		)		(72		)		(217		)		(92		)
Total allowance for loan and lease losses	(20,616		)		(19,426		)		(18,684		)		(19,398		)		(17,662		)
Net portfolio loans and leases	3,502,898				3,407,728				3,362,791				3,370,103				3,288,133
Premises and equipment	67,279				65,648				63,281				54,185				54,986
Operating lease right-of-use assets	43,985				—				—				—				—
Accrued interest receivable	13,123				12,585				13,232				13,115				12,521
Mortgage servicing rights	4,910				5,047				5,328				5,511				5,706
Bank owned life insurance	58,138				57,844				57,543				57,243				56,946
Federal Home Loan Bank ("FHLB") stock	10,526				14,530				14,678				16,678				15,499
Goodwill	184,012				184,012				183,864				183,162				182,200
Intangible assets	21,994				23,455				24,301				24,977				25,087
Other investments	16,526				16,526				16,529				16,774				11,720
Other assets	83,984				61,277				52,110				53,921				59,464
Total assets	$	4,631,993			$	4,652,485			$	4,388,442			$	4,394,203			$	4,300,376
Liabilities
Deposits
Noninterest-bearing	$	882,310			$	901,619			$	834,363			$	892,386			$	863,118
Interest-bearing	2,755,307				2,697,468				2,522,863				2,466,529				2,452,421
Total deposits	3,637,617				3,599,087				3,357,226				3,358,915				3,315,539
Short-term borrowings	124,214				252,367				226,498				227,059				173,704
Long-term FHLB advances	55,407				55,374				72,841				87,808				107,784
Subordinated notes	98,571				98,526				98,482				98,491				98,448
Jr. subordinated debentures	21,622				21,580				21,538				21,497				21,456
Operating lease liabilities	48,224				—				—				—				—
Accrued interest payable	8,674				6,652				7,193				5,230				4,814
Other liabilities	62,557				54,195				53,239				52,700				45,570
Total liabilities	4,056,886				4,087,781				3,837,017				3,851,700				3,767,315
Shareholders' equity
Common stock	24,577				24,545				24,533				24,453				24,439
Paid-in capital in excess of par value	375,655				374,010				373,205				372,227				371,319
Less: common stock held in treasury, at cost	(76,974		)		(75,883		)		(70,437		)		(68,943		)		(68,787		)
Accumulated other comprehensive (loss) income, net of tax	(3,278		)		(7,513		)		(13,402		)		(11,191		)		(9,664		)
Retained earnings	255,813				250,230				238,204				226,634				216,438
Total Bryn Mawr Bank Corporation shareholders' equity	575,793				565,389				552,103				543,180				533,745
Noncontrolling interest	(686		)		(685		)		(678		)		(677		)		(684		)
Total shareholders' equity	575,107				564,704				551,425				542,503				533,061
Total liabilities and shareholders' equity	$	4,631,993			$	4,652,485			$	4,388,442			$	4,394,203			$	4,300,376

Bryn Mawr Bank CorporationSupplemental Balance Sheet Information (unaudited)(dollars in thousands)

	Portfolio Loans and Leases as of
	March 31, 2019				December 31, 2018				September 30, 2018				June 30, 2018				March 31, 2018
Commercial mortgages	$	1,746,695			$	1,657,436			$	1,618,493			$	1,613,721			$	1,541,457
Home equity loans and lines	204,791				207,351				207,806				206,429				211,469
Residential mortgages	502,379				494,355				467,402				449,060				453,655
Construction	159,761				181,078				178,493				190,874				202,168
Total real estate loans	2,613,626				2,540,220				2,472,194				2,460,084				2,408,749
Commercial & Industrial	705,701				695,584				722,999				745,306				727,231
Consumer	47,821				46,814				47,809				51,462				48,423
Leases	156,366				144,536				138,473				132,649				121,392
Total non-real estate loans and leases	909,888				886,934				909,281				929,417				897,046
Total portfolio loans and leases	$	3,523,514			$	3,427,154			$	3,381,475			$	3,389,501			$	3,305,795

	Nonperforming Loans and Leases as of
	March 31, 2019				December 31, 2018				September 30, 2018				June 30, 2018				March 31, 2018
Commercial mortgages	$	5,558			$	2,568			$	735			$	1,011			$	138
Home equity loans and lines	6,904				3,616				1,933				2,323				1,949
Residential mortgages	2,863				3,452				2,770				2,647				2,603
Construction	—				—				291				—				—
Total nonperforming real estate loans	15,325				9,636				5,729				5,980				4,690
Commercial & Industrial	2,965				2,101				1,782				1,585				2,499
Consumer	80				108				117				—				—
Leases	913				975				1,362				1,882				344
Total nonperforming non-real estate loans and leases	3,958				3,184				3,261				3,468				2,843
Total nonperforming portfolio loans and leases	$	19,283			$	12,820			$	8,990			$	9,448			$	7,533

	Net Loan and Lease Charge-Offs (Recoveries) for the Three Months Ended
	March 31, 2019				December 31, 2018				September 30, 2018				June 30, 2018				March 31, 2018
Commercial mortgage	$	1,373			$	249			$	56			$	13			$	(3	)
Home equity loans and lines	46				107				—				199				25
Residential	329				304				(12		)		(1		)		—
Construction	(1		)		—				—				(1		)		(1		)
Total net charge-offs of real estate loans	1,747				660				44				210				21
Commercial & Industrial	391				298				304				467				283
Consumer	94				147				71				41				48
Leases	314				515				959				683				541
Total net charge-offs of non-real estate loans and leases	799				960				1,334				1,191				872
Total net charge-offs	$	2,546			$	1,620			$	1,378			$	1,401			$	893

	Investment Securities Available for Sale, at Fair Value
	March 31, 2019				December 31, 2018				September 30, 2018				June 30, 2018				March 31, 2018
U.S. Treasury securities	$	100			$	200,013			$	100			$	100			$	100
Obligations of the U.S. Government and agencies	186,746				195,855				190,453				183,256				175,107
State & political subdivisions - tax-free	8,468				11,162				15,629				17,254				19,746
State & political subdivisions - taxable	170				170				170				171				171
Mortgage-backed securities	322,913				289,890				284,421				292,563				303,902
Collateralized mortgage obligations	40,486				39,252				36,193				36,634				33,980
Other debt securities	1,100				1,100				1,098				1,097				1,097
Total investment securities available for sale, at fair value	$	559,983			$	737,442			$	528,064			$	531,075			$	534,103

	Unrealized Gain (Loss) on Investment Securities Available for Sale
	March 31, 2019				December 31, 2018				September 30, 2018				June 30, 2018				March 31, 2018
U.S. Treasury securities	$	—			$	(13	)		$	—			$	—			$	—
Obligations of the U.S. Government and agencies	(1,334		)		(2,749		)		(5,881		)		(4,594		)		(3,756		)
State & political subdivisions - tax-free	(5		)		(39		)		(90		)		(57		)		(74		)
State & political subdivisions - taxable	—				(1		)		(1		)		(1		)		(1		)
Mortgage-backed securities	(696		)		(4,186		)		(7,584		)		(6,141		)		(5,169		)
Collateralized mortgage obligations	(510		)		(898		)		(1,618		)		(1,443		)		(1,322		)
Other debt securities	—				—				(2		)		(3		)		(3		)
Total unrealized losses on investment securities available for sale	$	(2,545	)		$	(7,886	)		$	(15,176	)		$	(12,239	)		$	(10,325	)

	Deposits
	March 31, 2019				December 31, 2018				September 30, 2018				June 30, 2018				March 31, 2018
Interest-bearing deposits:
Interest-bearing demand	$	664,683			$	664,749			$	578,243			$	617,258			$	529,478
Money market	961,348				862,644				812,027				814,530				856,072
Savings	265,613				247,081				286,266				291,858				308,925
Retail time deposits	531,522				542,702				561,123				536,287				523,138
Wholesale non-maturity deposits	47,744				55,031				24,040				36,826				63,449
Wholesale time deposits	284,397				325,261				261,164				169,770				171,359
Total interest-bearing deposits	2,755,307				2,697,468				2,522,863				2,466,529				2,452,421
Noninterest-bearing deposits	882,310				901,619				834,363				892,386				863,118
Total deposits	$	3,637,617			$	3,599,087			$	3,357,226			$	3,358,915			$	3,315,539

Bryn Mawr Bank CorporationDetailed Income Statements (unaudited)(dollars in thousands, except per share data)

	For the Three Months Ended
	March 31, 2019				December 31, 2018				September 30, 2018				June 30, 2018				March 31, 2018
Interest income:
Interest and fees on loans and leases	$	44,837			$	44,157			$	42,103			$	41,689			$	40,689
Interest on cash and cash equivalents	132				83				64				64				53
Interest on investment securities	3,499				3,294				3,066				3,001				2,792
Total interest income	48,468				47,534				45,233				44,754				43,534
Interest expense:
Interest on deposits	8,097				7,048				5,533				4,499				3,472
Interest on short-term borrowings	943				681				1,096				985				630
Interest on FHLB advances	278				331				394				490				562
Interest on jr. subordinated debentures	358				342				337				321				288
Interest on subordinated notes	1,145				1,145				1,144				1,143				1,143
Total interest expense	10,821				9,547				8,504				7,438				6,095
Net interest income	37,647				37,987				36,729				37,316				37,439
Provision for loan and lease losses (the "Provision")	3,736				2,362				664				3,137				1,030
Net interest income after Provision	33,911				35,625				36,065				34,179				36,409
Noninterest income:
Fees for wealth management services	10,392				11,017				10,343				10,658				10,308
Insurance commissions	1,672				1,459				1,754				1,902				1,693
Capital markets revenue	2,219				1,367				710				2,105				666
Service charges on deposits	808				798				726				752				713
Loan servicing and other fees	609				539				559				475				686
Net gain on sale of loans	319				1,606				631				528				518
Net gain on sale of investment securities available for sale	—				—				—				—				7
Net gain (loss) on sale of other real estate owned	(24		)		3				5				111				176
Dividends on FHLB and FRB stocks	411				305				375				510				431
Other operating income	2,847				1,003				3,171				3,034				4,338
Total noninterest income	19,253				18,097				18,274				20,075				19,536
Noninterest expense:
Salaries and wages	20,901				17,921				16,528				16,240				15,982
Employee benefits	4,166				2,977				3,356				2,877				3,708
Occupancy and bank premises	3,252				3,135				2,717				2,697				3,050
Furniture, fixtures and equipment	2,389				2,370				2,070				2,069				1,898
Advertising	415				540				349				369				461
Amortization of intangible assets	938				997				891				889				879
Impairment (recovery) of mortgage servicing rights ("MSRs")	17				101				(23		)		(1		)		(50		)
Due diligence, merger-related and merger integration expenses	—				—				389				3,053				4,319
Professional fees	1,320				1,526				997				932				748
Pennsylvania bank shares tax	409				374				472				473				473
Information technology	1,320				1,340				1,155				1,252				1,195
Other operating expenses	4,597				3,564				4,691				4,986				3,367
Total noninterest expense	39,724				34,845				33,592				35,836				36,030
Income before income taxes	13,440				18,877				20,747				18,418				19,915
Income tax expense	2,764				1,746				4,066				3,723				4,630
Net income	$	10,676			$	17,131			$	16,681			$	14,695			$	15,285
Net (loss) income attributable to noncontrolling interest	(1		)		(5		)		(1		)		7				(1		)
Net income attributable to Bryn Mawr Bank Corporation	$	10,677			$	17,136			$	16,682			$	14,688			$	15,286
Per share data:
Weighted average shares outstanding	20,168,498				20,225,993				20,270,706				20,238,852				20,202,969
Dilutive common shares	103,163				95,290				167,670				174,726				247,525
Weighted average diluted shares	20,271,661				20,321,283				20,438,376				20,413,578				20,450,494
Basic earnings per common share	$	0.53			$	0.85			$	0.82			$	0.73			$	0.76
Diluted earnings per common share	$	0.53			$	0.84			$	0.82			$	0.72			$	0.75
Dividends paid or accrued per share	$	0.25			$	0.25			$	0.25			$	0.22			$	0.22
Effective tax rate	20.57		%		9.25		%		19.60		%		20.21		%		23.25		%

Bryn Mawr Bank CorporationTax-Equivalent Net Interest Margin (unaudited)(dollars in thousands, except per share data)

	For the Three Months Ended
	March 31, 2019								December 31, 2018								September 30, 2018								June 30, 2018								March 31, 2018
(dollars in thousands)	AverageBalance			InterestIncome/Expense			Average RatesEarned/ Paid		Average Balance			Interest Income/ Expense			Average RatesEarned/ Paid		Average Balance			Interest Income/ Expense			Average RatesEarned/ Paid		Average Balance			Interest Income/ Expense			Average RatesEarned/ Paid		Average Balance			Interest Income/ Expense			Average RatesEarned/ Paid
Assets:
Interest-bearing deposits with other banks	$	32,742		$	132		1.64	%	$	38,957		$	83		0.85	%	$	37,467		$	64		0.68	%	$	37,215		$	64		0.69	%	$	38,044		$	53		0.56	%
Investment securities - available for sale:
Taxable	543,687			3,419			2.55	%	524,117			3,129			2.37	%	514,360			2,960			2.28	%	514,966			2,888			2.25	%	498,718			2,675			2.18	%
Tax-exempt	9,795			168			6.96	%	13,184			70			2.11	%	16,056			83			2.05	%	18,215			93			2.05	%	20,501			100			1.98	%
Total investment securities - available for sale	553,482			3,587			2.63	%	537,301			3,199			2.36	%	530,416			3,043			2.28	%	533,181			2,981			2.24	%	519,219			2,775			2.17	%
Investment securities - held to maturity	8,804			11			0.51	%	8,761			9			0.41	%	8,378			5			0.24	%	7,866			13			0.66	%	7,913			12			0.62	%
Investment securities - trading	7,629			22			1.17	%	8,203			96			4.64	%	8,204			30			1.45	%	8,202			22			1.08	%	8,339			21			1.02	%
Loans and leases *	3,477,739			44,845			5.23	%	3,399,484			44,274			5.17	%	3,379,699			42,214			4.96	%	3,353,339			41,782			5.00	%	3,291,212			40,754			5.02	%
Total interest-earning assets	4,080,396			48,597			4.83	%	3,992,706			47,661			4.74	%	3,964,164			45,356			4.54	%	3,939,803			44,862			4.57	%	3,864,727			43,615			4.58	%
Cash and due from banks	14,414								13,962								7,587								7,153								10,698
Less: allowance for loan and lease losses	(19,887		)						(18,625		)						(19,467		)						(18,043		)						(17,628		)
Other assets	470,206								424,957								423,864								415,628								388,383
Total assets	$	4,545,129							$	4,413,000							$	4,376,148							$	4,344,541							$	4,246,180
Liabilities:
Interest-bearing deposits:
Savings, NOW and market rate deposits	$	1,798,103		$	3,764		0.85	%	$	1,704,065		$	2,883		0.67	%	$	1,695,214		$	2,425		0.57	%	$	1,722,328		$	2,073		0.48	%	$	1,676,733		$	1,479		0.36	%
Wholesale deposits	342,696			2,012			2.38	%	346,134			1,986			2.28	%	256,347			1,329			2.06	%	233,714			973			1.67	%	231,289			733			1.29	%
Retail time deposits	533,395			2,321			1.76	%	552,213			2,179			1.57	%	541,652			1,779			1.30	%	533,254			1,453			1.09	%	527,469			1,260			0.97	%
Total interest-bearing deposits	2,674,194			8,097			1.23	%	2,602,412			7,048			1.07	%	2,493,213			5,533			0.88	%	2,489,296			4,499			0.72	%	2,435,491			3,472			0.58	%
Borrowings:
Short-term borrowings	157,652			943			2.43	%	128,429			681			2.10	%	208,201			1,096			2.09	%	205,323			985			1.92	%	172,534			630			1.48	%
Long-term FHLB advances	55,385			278			2.04	%	67,363			331			1.95	%	81,460			394			1.92	%	102,023			490			1.93	%	123,920			562			1.84	%
Subordinated notes	98,542			1,145			4.71	%	98,497			1,145			4.61	%	98,457			1,144			4.61	%	98,463			1,143			4.66	%	98,430			1,143			4.71	%
Jr. subordinated debt	21,595			358			6.72	%	21,553			342			6.30	%	21,511			337			6.22	%	21,470			321			6.00	%	21,430			288			5.45	%
Total borrowings	333,174			2,724			3.32	%	315,842			2,499			3.14	%	409,629			2,971			2.88	%	427,279			2,939			2.76	%	416,314			2,623			2.56	%
Total interest-bearing liabilities	3,007,368			10,821			1.46	%	2,918,254			9,547			1.30	%	2,902,842			8,504			1.16	%	2,916,575			7,438			1.02	%	2,851,805			6,095			0.87	%
Noninterest-bearing deposits	871,726								878,047								866,314								841,676								835,476
Other liabilities	93,949								60,393								59,085								52,389								32,465
Total noninterest-bearing liabilities	965,675								938,440								925,399								894,065								867,941
Total liabilities	3,973,043								3,856,694								3,828,241								3,810,640								3,719,746
Shareholders' equity	572,086								556,306								547,907								533,901								526,434
Total liabilities and shareholders' equity	$	4,545,129							$	4,413,000							$	4,376,148							$	4,344,541							$	4,246,180
Net interest spread							3.37	%							3.44	%							3.38	%							3.55	%							3.71	%
Effect of noninterest-bearing sources							0.38	%							0.35	%							0.31	%							0.26	%							0.23	%
Tax-equivalent net interest margin				$	37,776		3.75	%				$	38,114		3.79	%				$	36,852		3.69	%				$	37,424		3.81	%				$	37,520		3.94	%
Tax-equivalent adjustment				$	129		0.01	%				$	127		0.01	%				$	123		0.01	%				$	108		0.01	%				$	81		0.01	%
* Average loans and leases include portfolio loans and leases, and loans held for sale. Non-accrual loans are also included in the average loan and leases balances.

Supplemental Information Regarding Accretion of Fair Value Marks

	For the Three Months Ended
	March 31, 2019						December 31, 2018						September 30, 2018						June 30, 2018						March 31, 2018
(dollars in thousands)	Interest	Inc. / (Dec.)			Effect on Yield or Rate			Inc. / (Dec.)			Effect on Yield or Rate			Inc. / (Dec.)			Effect on Yield or Rate			Inc. / (Dec.)			Effect on Yield or Rate			Inc. / (Dec.)			Effect on Yield or Rate
Loans and leases	Income	$	1,997		0.23	%		$	2,492		0.29	%		$	1,464		0.17	%		$	1,945		0.23	%		$	2,702		0.33	%
Retail time deposits	Expense	(222		)	(0.17	)%		(279		)	(0.20	)%		(311		)	(0.23	)%		(339		)	(0.25	)%		(380		)	(0.29	)%
Long-term FHLB advances	Expense	33			0.24	%		34			0.20	%		32			0.16	%		25			0.10	%		15			0.05	%
Jr. subordinated debt	Expense	42			0.79	%		42			0.77	%		41			0.76	%		41			0.77	%		40			0.76	%
Net interest income from fair value marks		$	2,144					$	2,695					$	1,702					$	2,218					$	3,027
Purchase accounting effect on tax-equivalent margin					0.21	%					0.27	%					0.17	%					0.23	%					0.32	%

Bryn Mawr Bank CorporationAppendix - 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
	March 31, 2019				December 31, 2018				September 30, 2018				June 30, 2018				March 31, 2018
Reconciliation of Net Income to Net Income (core):
Net income attributable to BMBC (a GAAP measure)	$	10,677			$	17,136			$	16,682			$	14,688			$	15,286
Less: Tax-effected non-core noninterest income:
Gain on sale of investment securities available for sale	—				—				—				—				(6		)
Add: Tax-effected non-core noninterest expense items:
Due diligence, merger-related and merger integration expenses	—				—				307				2,412				3,412
Voluntary years of service incentive program expenses	3,553				—				—				—				—
Add: Federal income tax expense related to re-measurement of net deferred tax asset due to tax reform legislation	—				31				151				(69		)		590
Net income (core) (a non-GAAP measure)	$	14,230			$	17,167			$	17,140			$	17,031			$	19,282
Calculation of Basic and Diluted Earnings per Common Share (core):
Weighted average common shares outstanding	20,168,498				20,225,993				20,270,706				20,238,852				20,202,969
Dilutive common shares	103,163				95,290				167,670				174,726				247,525
Weighted average diluted shares	20,271,661				20,321,283				20,438,376				20,413,578				20,450,494
Basic earnings per common share (core) (a non-GAAP measure)	$	0.71			$	0.85			$	0.85			$	0.84			$	0.95
Diluted earnings per common share (core) (a non-GAAP measure)	$	0.70			$	0.84			$	0.84			$	0.83			$	0.94
Calculation of Return on Average Tangible Equity:
Net income attributable to BMBC (a GAAP measure)	$	10,677			$	17,136			$	16,682			$	14,688			$	15,286
Add: Tax-effected amortization and impairment of intangible assets	741				787				705				702				694
Net tangible income (numerator)	$	11,418			$	17,923			$	17,387			$	15,390			$	15,980
Average shareholders' equity	$	572,086			$	556,306			$	547,907			$	533,901			$	526,434
Less: Average Noncontrolling interest	685				681				678				685				683
Less: Average goodwill and intangible assets	(206,716		)		(207,893		)		(207,880		)		(208,039		)		(205,529		)
Net average tangible equity (denominator)	$	366,055			$	349,094			$	340,705			$	326,547			$	321,588
Return on tangible equity (a non-GAAP measure)	12.65		%		20.37		%		20.25		%		18.90		%		20.15		%
Calculation of Return on Average Tangible Equity (core):
Net income (core) (a non-GAAP measure)	$	14,230			$	17,167			$	17,140			$	17,031			$	19,282
Add: Tax-effected amortization and impairment of intangible assets	741				787				705				702				694
Net tangible income (core) (numerator)	$	14,971			$	17,954			$	17,845			$	17,733			$	19,976
Average shareholders' equity	$	572,086			$	556,306			$	547,907			$	533,901			$	526,434
Less: Average Noncontrolling interest	685				681				678				685				683
Less: Average goodwill and intangible assets	(206,716		)		(207,893		)		(207,880		)		(208,039		)		(205,529		)
Net average tangible equity (denominator)	$	366,055			$	349,094			$	340,705			$	326,547			$	321,588
Return on tangible equity (core) (a non-GAAP measure)	16.59		%		20.40		%		20.78		%		21.78		%		25.19		%

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
	March 31, 2019				December 31, 2018				September 30, 2018				June 30, 2018				March 31, 2018
Calculation of Tangible Equity Ratio (BMBC):
Total shareholders' equity	$	575,107			$	564,704			$	551,425			$	542,503			$	533,061
Less: Noncontrolling interest	686				685				678				677				684
Less: Goodwill and intangible assets	(206,006		)		(207,467		)		(208,165		)		(208,139		)		(207,287		)
Net tangible equity (numerator)	$	369,787			$	357,922			$	343,938			$	335,041			$	326,458
Total assets	$	4,631,993			$	4,652,485			$	4,388,442			$	4,394,203			$	4,300,376
Less: Goodwill and intangible assets	(206,006		)		(207,467		)		(208,165		)		(208,139		)		(207,287		)
Tangible assets (denominator)	$	4,425,987			$	4,445,018			$	4,180,277			$	4,186,064			$	4,093,089
Tangible equity ratio (BMBC)(1)	8.35		%		8.05		%		8.23		%		8.00		%		7.98		%
Calculation of Tangible Equity Ratio (BMTC):
Total shareholders' equity	$	605,985			$	591,695			$	582,698			$	582,354			$	569,670
Less: Noncontrolling interest	686				685				678				677				684
Less: Goodwill and intangible assets	(193,329		)		(194,715		)		(195,337		)		(195,245		)		(194,316		)
Net tangible equity (numerator)	$	413,342			$	397,665			$	388,039			$	387,786			$	376,038
Total assets	$	4,616,724			$	4,637,481			$	4,372,590			$	4,378,508			$	4,284,334
Less: Goodwill and intangible assets	(193,329		)		(194,715		)		(195,337		)		(195,245		)		(194,316		)
Tangible assets (denominator)	$	4,423,395			$	4,442,766			$	4,177,253			$	4,183,263			$	4,090,018
Tangible equity ratio (BMTC)(1)	9.34		%		8.95		%		9.29		%		9.27		%		9.19		%
Calculation of Return on Average Assets (core)
Return on average assets (GAAP)	0.95		%		1.54		%		1.51		%		1.36		%		1.46		%
Effect of adjustment to GAAP net income to core net income	0.32		%		—		%		0.04		%		0.21		%		0.38		%
Return on average assets (core)	1.27		%		1.54		%		1.55		%		1.57		%		1.84		%
Calculation of Return on Average Equity (core)
Return on average equity (GAAP)	7.57		%		12.22		%		12.08		%		11.03		%		11.78		%
Effect of adjustment to GAAP net income to core net income	2.52		%		0.02		%		0.33		%		1.76		%		3.07		%
Return on average equity (core)	10.09		%		12.24		%		12.41		%		12.79		%		14.85		%
Calculation of Tax-equivalent net interest margin adjusting for the impact of purchase accounting
Tax-equivalent net interest margin	3.75		%		3.79		%		3.69		%		3.81		%		3.94		%
Effect of fair value marks	0.21		%		0.27		%		0.17		%		0.23		%		0.32		%
Tax-equivalent net interest margin adjusting for the impact of purchase accounting	3.54		%		3.52		%		3.52		%		3.58		%		3.62		%

1. Capital Ratios for the current quarter are to be considered preliminary until the Call Reports are filed.

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
	March 31, 2019				December 31, 2018				September 30, 2018				June 30, 2018				March 31, 2018
Calculation of Tax-equivalent net interest income adjusting for the impact of purchase accounting
Tax-equivalent net interest income	$	37,776			$	38,114			$	36,852			$	37,424			$	37,520
Effect of fair value marks	2,144				2,695				1,702				2,218				3,027
Tax-equivalent net interest income adjusting for the impact of purchase accounting	$	35,632			$	35,419			$	35,150			$	35,206			$	34,493
Calculation of Efficiency Ratio:
Noninterest expense	$	39,724			$	34,845			$	33,592			$	35,836			$	36,030
Less: certain noninterest expense items*:
Amortization of intangibles	(938		)		(997		)		(891		)		(889		)		(879		)
Due diligence, merger-related and merger integration expenses	—				—				(389		)		(3,053		)		(4,319		)
Voluntary years of service incentive program expenses	(4,498		)		—				—				—				—
Noninterest expense (adjusted) (numerator)	$	34,288			$	33,848			$	32,312			$	31,894			$	30,832
Noninterest income	$	19,253			$	18,097			$	18,274			$	20,075			$	19,536
Less: non-core noninterest income items:
Gain on sale of investment securities available for sale	—				—				—				—				(7		)
Noninterest income (core)	$	19,253			$	18,097			$	18,274			$	20,075			$	19,529
Net interest income	37,647				37,987				36,729				37,316				37,439
Noninterest income (core) and net interest income (denominator)	$	56,900			$	56,084			$	55,003			$	57,391			$	56,968
Efficiency ratio	60.26		%		60.35		%		58.75		%		55.57		%		54.12		%
Supplemental Loan and Allowance Information Used to Calculate Non-GAAP Measures
Total Allowance	$	20,616			$	19,426			$	18,684			$	19,398			$	17,662
Less: Allowance on acquired loans	97				97				72				217				92
Allowance on originated loans and leases	$	20,519			$	19,329			$	18,612			$	19,181			$	17,570
Total Allowance	$	20,616			$	19,426			$	18,684			$	19,398			$	17,662
Loan mark on acquired loans	15,841				17,822				24,964				26,705				32,260
Total Allowance + Loan mark	$	36,457			$	37,248			$	43,648			$	46,103			$	49,922
Total Portfolio loans and leases	$	3,523,514			$	3,427,154			$	3,381,475			$	3,389,501			$	3,305,795
Less: Originated loans and leases	3,032,270				2,885,251				2,752,160				2,700,815				2,564,827
Net acquired loans	$	491,244			$	541,903			$	629,315			$	688,686			$	740,968
Add: Loan mark on acquired loans	15,841				17,822				24,964				26,705				32,260
Gross acquired loans (excludes loan mark)	$	507,085			$	559,725			$	654,279			$	715,391			$	773,228
Originated loans and leases	3,032,270				2,885,251				2,752,160				2,700,815				2,564,827
Total Gross portfolio loans and leases	$	3,539,355			$	3,444,976			$	3,406,439			$	3,416,206			$	3,338,055

• 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.