Bryn Mawr Bank (BMTC) 8-K Bryn Mawr Bank Corporation Reports Record Quarterly Net Income of

Exhibit 99.1

 

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

Bryn Mawr Bank Corporation Reports Record Quarterly Net Income of

$9.4 Million and Record Annual Net Income of $36.0 Million,

Driven by 2016 Annual Loan Growth of 11.7%,

Wealth Assets Reach $11.3 Billion

BRYN MAWR, Pa., January 19, 2017 - Bryn Mawr Bank Corporation (NASDAQ: BMTC) (the “Corporation”), parent of TheBryn 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 December 31, 2016, as compared to net income of $9.4 million, or $0.55 diluted earnings per share, for the three months ended September 30, 2016 and a net loss of $6.4 million, or $(0.37) diluted earnings per share, for the three months ended December 31, 2015.

On a non-GAAP basis, core net income, which excludes certain non-core income and expense items, as detailed in the appendix to this earnings release, was also $9.4 million, or $0.55 diluted earnings per share, for the three months ended December 31, 2016 as compared to $9.4 million, or $0.55 diluted earnings per share, for the three months ended September 30, 2016 and $7.5 million, or $0.44 diluted earnings per share, for the three months ended December 31, 2015. Management believes the core net income measure is important in evaluating the Corporation’s performance on a more comparable basis between periods. A reconciliation of this and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release.

“We were pleased to conclude 2016 on a positive note, with fourth quarter and annual net income, both GAAP and core, reaching all-time highs,” commented Frank Leto, President and Chief Executive Officer, continuing, “The outstanding loan growth we saw during the year, coupled with the momentum in our wealth management business positions us well going into 2017.” Mr. Leto added, “Although the future operating environment may be more difficult to predict, at this juncture, we are confident that our unique blend of expertise and customer service, coupled with an expanding digital capability and enhanced product offerings, will ensure we remain poised to take advantage of future opportunities.”

On January 19, 2017, the Board of Directors of the Corporation declared a quarterly dividend of $0.21 per share, payable March 1, 2017 to shareholders of record as of February 2, 2017.

SIGNIFICANT ITEMS OF NOTE

Results of Operations –Fourth Quarter 2016 Compared toThird Quarter 2016

● Net income for the three months ended December 31, 2016 was $9.4 million, as compared to $9.4 million for the three months ended September 30, 2016. The recovery of mortgage servicing rights (“MSR”s), the increase in net interest income, and the increase in fees for wealth management services were offset by a decrease in gain on sale of residential mortgage loans and an increase in other operating expense.

● Net interest income for the three months ended December 31, 2016 was $27.0 million, an increase of $273 thousand from $26.7 million for the three months ended September 30, 2016. Average interest-earning assets increased by $75.8 million, but decreased in yield by 4 basis points, while average interest-bearing liabilities increased by $58.8 million, accompanied by a 1 basis point increase in rate paid.

● The tax-equivalent net interest margin of 3.65% for the fourth quarter of 2016 decreased 6 basis points from 3.71% for the third quarter of 2016. The decrease was primarily the result of a 2 basis point decrease in tax-equivalent yield earned on average loans, which totaled $2.5 billion for the three months ended December 31, 2016, coupled with a 3 basis point increase in tax-equivalent rate paid on average interest-bearing deposits, which totaled $1.8 billion for the three months ended December 31, 2016.

● Non-interest income for the three months ended December 31, 2016 decreased $773 thousand from the third quarter of 2016. The decrease was largely the result of a $507 thousand decrease in gain on sale of residential mortgage loans and a $305 thousand decrease in other operating income. Partially offsetting these decreases was a $227 thousand increase in fees for wealth management services.

● Non-interest expense for the three months ended December 31, 2016 decreased $519 thousand, to $25.0 million, as compared to $25.5 million for the third quarter of 2016. Largely contributing to the decrease was a $580 thousand recovery of MSRs during the fourth quarter and an $879 thousand decrease in Pennsylvania bank shares tax. The recovery of MSRs was a result of rising interest rates which reversed the impairment recorded in the second quarter of 2016. The reduction in Pennsylvania bank shares tax resulted from $855 thousand in tax credits received in return for $950 thousand of contributions to local schools under the Pennsylvania Educational Improvement Tax Credit (EITC) program. These contributions are reflected in the $857 thousand increase in other operating expense.

● For the three months ended December 31, 2016, net loan and lease charge-offs totaled $1.3 million, as compared to $704 thousand for the third quarter of 2016. The provision for loan and lease losses (the “Provision”) for the three months ended December 31, 2016 was $1.1 million, a decrease of $353 thousand from the third quarter of 2016.

● Income tax expense for the fourth quarter of 2016 increased by $338 thousand as compared to the third quarter of 2016. The increase in the effective tax rate from the third quarter of 2016 to the fourth quarter of 2016 from 31.7% to 33.2%, respectively, was the result of the early adoption of ASC 2016-09 in the third quarter of 2016. ASC 2016-09 allows for the excess tax benefit from stock-based compensation to be recorded as a discrete item on the income statement. During the third quarter of 2016, discrete tax items totaled $385 thousand as compared to $120 thousand in the fourth quarter of 2016.

Results of Operations –Fourth Quarter 2016 Compared toFourth Quarter 2015

● Net income for the three months ended December 31, 2016 was $9.4 million, or $0.55 diluted earnings per share, as compared to a loss of $6.4 million, or diluted earnings per share of $(0.37) for the same period in 2015. The primary driver of the loss in the fourth quarter of 2015 was the loss on settlement of the corporate pension plan, which resulted in a $17.4 million pre-tax charge. On a core basis (a non-GAAP measure detailed in the appendix to this earnings release), core net income for the fourth quarter of 2016 of $9.4 million was a $1.9 million increase from core net income of $7.5 million for the fourth quarter of 2015. The increase in core net income was driven by a $1.6 million increase in net interest income, a $718 thousand decrease in the Provision and a $332 thousand increase in fees for wealth management services. In addition, decreases of $260 thousand, $265 thousand and $158 thousand in furniture, fixtures and equipment, advertising and Pennsylvania bank shares tax, respectively, contributed to the increase in net income.

● Net interest income for the three months ended December 31, 2016 was $27.0 million, an increase of $1.6 million, or 6.1%, from $25.4 million for the same period in 2015. The increase in net interest income was primarily related to the growth in average loan balances between the periods. Average loans and leases for the three months ended December 31, 2016 increased by $270.2 million from the same period in 2015. The increase in average loan balances was offset by a 14 basis point decrease in tax-equivalent yield earned on loans and leases. The net effect of the yield decrease and volume increase on average loans and leases was a $2.2 million increase in tax-equivalent interest income on loans. Partially offsetting the increase in average loans was a $197.7 million increase in average interest-bearing deposits accompanied by a 13 basis point increase in rate paid on deposits.

● The tax-equivalent net interest margin of 3.65% for the three months ended December 31, 2016 was a 12 basis point decrease from 3.77% for the same period in 2015. The primary reason for the decline in the margin was the 14 basis point decrease in tax-equivalent yield earned on loans and the 13 basis point increase in rate paid on deposits.

● Non-interest income for the three months ended December 31, 2016 decreased $549 thousand as compared to the same period in 2015. Contributing to this decrease was a $273 thousand decrease in gain on sale of residential mortgage loans, as interest rate increases during the fourth quarter of 2016 have slowed originations. In addition, a $233 thousand decrease in other operating income, largely related to the income recognized from the pay-off, in full, of purchased credit-impaired loans, which decreased from $319 thousand in the fourth quarter of 2015 to $159 thousand in the fourth quarter of 2016, contributed to the decrease in non-interest income.

● Non-interest expense for the three months ended December 31, 2016 decreased $22.0 million, primarily related to the $17.4 million loss on settlement of the corporate pension plan, which occurred in the fourth quarter of 2015. Excluding the non-core expense items detailed in the Appendix to this press release, decreases of $260 thousand, $265 thousand and $158 thousand in furniture, fixtures and equipment, advertising and Pennsylvania bank shares tax, respectively, contributed to the decrease in non-interest expense.

● The Provision for the three months ended December 31, 2016 of $1.1 million was a $718 thousand decrease from the same period in 2015. The level of net charge-offs in the fourth quarter of 2016 was $538 thousand lower than that in the fourth quarter of 2015. On an annual basis, net charge-offs for 2016 decreased by 13.7% from $3.1 million in 2015 to 2.7 million in 2016. The credit quality of the loan portfolio remains strong.

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

● Total portfolio loans and leases of $2.54 billion as of December 31, 2016 increased by $266.4 million, or 11.7%, from December 31, 2015. Loan growth was concentrated in the commercial mortgage, commercial and industrial, and construction categories, which increased $146.6 million, $55.3 million and $51.5 million, respectively, since December 31, 2015.

● The allowance for loan and lease losses (the “Allowance”) as of December 31, 2016 was $17.5 million, or 0.69% of portfolio loans as compared to $15.9 million, or 0.70% of portfolio loans and leases, as of December 31, 2015. In addition to the ratio of Allowance to portfolio loans, management also calculates two non-GAAP measures: the Allowance as a percentage of originated loans and leases, which was 0.78% as of December 31, 2016, as compared to 0.84% as of December 31, 2015, and the Allowance plus the remaining loan mark as a percentage of gross loans, which was 1.17% as of December 31, 2016, as compared to 1.44% as of December 31, 2015. A reconciliation of these and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release.

● Available for sale investment securities as of December 31, 2016 were $567.0 million, an increase of $218.0 million from December 31, 2015. The primary contributor to the increase in the portfolio was the purchase, during December 2016, of $200 million of short-term U.S. Treasury bills.

● Total assets as of December 31, 2016 were $3.42 billion, an increase of $390.6 million from December 31, 2015. The purchase of $200 million of short-term U.S. Treasury bills and the $266.4 million increase in the loan portfolio were the primary causes for the increase.

● Wealth assets under management, administration, supervision and brokerage totaled $11.33 billion as of December 31, 2016, an increase of $2.96 billion, or 35.4%, from December 31, 2015. The significant growth in the wealth asset portfolio is largely comprised of accounts for which the Corporation provides trust and custodial services, which pay fees at lower rates per dollar of assets, or are billed on a flat-fee basis. As a result, fees for wealth management services are not increasing at the same rate at which the assets grow. However, as demonstrated by the increase in wealth management fees for the fourth quarter of 2016 as compared to both the fourth quarter of 2015 and the third quarter of 2016, the increased volume of assets is currently compensating for the lower yields.

● Deposits of $2.58 billion as of December 31, 2016 increased $327.0 million from December 31, 2015. Noninterest-bearing deposits increased by $109.5 million, retail time deposits and savings deposits increased by $93.7 million and $44.9 million, respectively, NOW accounts increased by $40.6 million and wholesale time deposits increased by $19.9 million.

● Borrowings of $393.9 million as of December 31, 2016 was a $44.9 million increase from December 31, 2015. The increase was comprised of a $110.0 million increase in short-term Federal Home Loan Bank (“FHLB”) borrowings, drawn at year end to finance the purchase of $200 million of short-term U.S. Treasury bills, partially offset by a $65.1 million decrease in long-term FHLB advances which matured during 2016.

● The capital ratios for the Bank and the Corporation, as of December 31, 2016, as shown in the attached tables, indicate levels well above the regulatory minimum to be considered “well capitalized.” At the Corporation level, all capital ratios have decreased from their December 31, 2015 levels, primarily due to the increase in total assets and the increase in other comprehensive loss associated with available for sale investment securities. On a linked-quarter basis, most capital levels at the Corporation have increased from their September 30, 2016 levels, primarily due to increases in retained earnings offset by dividends paid and increases in other comprehensive loss associated with available for sale investment securities. At the Bank level, all capital levels have increased from their December 31, 2015 levels, largely as a result of increases in retained earnings and a $15 million capital infusion from the Corporation, offset by a $16 million dividend paid to the Corporation and increases in other comprehensive losses associated with the available for sale investment portfolio. On a linked-quarter basis, all capital levels at the Bank have decreased from their September 30, 2016 level, primarily due to the $16 million dividend paid to the Corporation and the growth in assets between the dates.

FORWARD LOOKING STATEMENTS AND SAFE HARBOR

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

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

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

# # # #

Bryn Mawr Bank Corporation

Summary Financial Information (unaudited)

(dollars in thousands, except per share data)

	As of or For the Three Months Ended															For the Twelve Months Ended
	December 31, 2016			September 30, 2016			June 30, 2016			March 31, 2016			December 31, 2015			December 31, 2016		December 31, 2015
Consolidated Balance Sheet (selected items)
Interest-bearing deposits with banks	$	34,206		$	30,118		$	20,481		$	33,954		$	124,615
Investment securities (AFS, HTM and Trading)		573,763			373,508			371,906			369,461			352,916
Loans held for sale		9,621			11,506			11,882			7,807			8,987
Portfolio loans and leases		2,535,425			2,493,357			2,423,821			2,378,841			2,268,988
Allowance for loan and lease losses ("ALLL")		(17,486	)		(17,744	)		(17,036	)		(16,845	)		(15,857	)
Goodwill and other intangible assets		125,170			126,000			126,888			127,777			128,668
Total assets		3,421,530			3,174,080			3,090,090			3,058,247			3,030,997
Deposits - interest-bearing		1,843,495			1,759,862			1,720,477			1,700,550			1,626,041
Deposits - non-interest-bearing		736,180			718,015			689,214			643,492			626,684
Short-term borrowings		204,151			50,065			19,119			37,010			94,167
Long-term FHLB advances and other borrowings		189,742			204,772			224,802			249,832			254,863
Subordinated notes		29,532			29,518			29,505			29,491			29,479
Total liabilities		3,040,403			2,795,621			2,717,623			2,693,070			2,665,286
Shareholders' equity		381,127			378,459			372,467			365,177			365,711
Average Balance Sheet (selected items)
Interest-bearing deposits with banks	$	55,298		$	33,532		$	44,950		$	39,050		$	90,832		$	43,214	$	161,032
Investment securities (AFS, HTM and Trading)		386,658			373,616			371,153			360,957			354,239			373,134		358,822
Loans held for sale		11,591			12,887			7,844			5,481			7,531			9,466		7,086
Portfolio loans and leases		2,506,376			2,464,085			2,404,799			2,303,103			2,240,189			2,419,950		2,153,542
Total interest-earning assets		2,959,923			2,884,120			2,828,746			2,708,591			2,692,791			2,845,764		2,680,482
Goodwill and intangible assets		125,614			126,505			127,402			128,296			129,292			126,950		128,181
Total assets		3,215,868			3,142,019			3,089,953			2,973,148			2,959,011			3,105,650		2,942,513
Deposits - interest-bearing		1,809,276			1,729,689			1,717,252			1,633,651			1,611,574			1,722,724		1,636,301
Short-term borrowings		40,629			40,966			32,328			34,158			26,092			37,041		36,010
Long-term FHLB advances and other borrowings		198,454			218,920			236,248			250,015			254,880			225,815		254,828
Subordinated notes		29,523			29,509			29,496			29,482			29,471			29,503		12,013
Total interest-bearing liabilities		2,077,882			2,019,084			2,015,324			1,947,306			1,922,017			2,015,083		1,939,152
Total liabilities		2,837,825			2,769,065			2,723,838			2,612,276			2,593,651			2,736,121		2,569,425
Shareholders' equity		378,043			372,954			366,115			360,872			365,360			369,529		373,088

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 Twelve Months Ended
	December 31, 2016			September 30, 2016			June 30, 2016			March 31, 2016			December 31, 2015			December 31, 2016			December 31, 2015
Income Statement
Net interest income	$	26,990		$	26,717		$	26,627		$	25,902		$	25,429		$	106,236		$	100,127
Provision for loan and lease losses		1,059			1,412			445			1,410			1,777			4,326			4,396
Noninterest income		13,119			13,892			13,820			13,208			13,668			54,039			55,960
Noninterest expense		24,958			25,477			26,259			25,051			46,951			101,745			125,765
Income tax expense (benefit)		4,684			4,346			4,810			4,328			(3,276	)		18,168			9,172
Net income (loss)		9,408			9,374			8,933			8,321			(6,355	)		36,036			16,754
Basic earnings per share		0.56			0.56			0.53			0.49			(0.37	)		2.14			0.96
Diluted earnings per share		0.55			0.55			0.52			0.49			(0.37	)		2.12			0.94
Net income (core)(1)		9,402			9,392			8,961			8,331			7,506			36,086			33,636
Basic earnings per share (core)(1)		0.56			0.56			0.53			0.49			0.44			2.14			1.92
Diluted earnings per share (core)(1)		0.55			0.55			0.53			0.49			0.44			2.12			1.89
Cash dividends paid per share		0.21			0.21			0.20			0.20			0.20			0.82			0.78
Profitability Indicators
Return on average assets		1.16	%		1.19	%		1.16	%		1.13	%		-0.86	%		1.16	%		0.57	%
Return on average equity		9.90	%		10.00	%		9.81	%		9.27	%		-7.00	%		9.75	%		4.49	%
Return on tangible equity(1)		15.68	%		16.06	%		16.02	%		15.39	%		-9.36	%		15.79	%		7.96	%
Tax-equivalent net interest margin		3.65	%		3.71	%		3.81	%		3.87	%		3.77	%		3.76	%		3.75	%
Efficiency ratio(1)		60.17	%		60.51	%		62.66	%		61.75	%		63.09	%		61.27	%		61.25	%
Mortgage Banking Information
Mortgage loans originated	$	78,749		$	84,885		$	64,893		$	51,532		$	55,867		$	228,527		$	231,049
Residential mortgage loans sold - servicing retained		44,763			40,462			26,944			25,965			24,063			112,169			107,351
Residential mortgage loans sold - servicing released		4,632			10,522			5,278			2,397			7,150			20,432			29,630
Total residential mortgage loans sold	$	49,395		$	50,984		$	32,222		$	28,362		$	31,213		$	132,601		$	136,981
Residential mortgage loans serviced for others	$	631,889		$	618,134		$	610,418		$	605,366		$	601,939
Share Data
Closing share price	$	42.15		$	31.99		$	29.20		$	25.73		$	28.72
Book value per common share	$	22.32		$	22.08		$	21.76		$	21.48		$	21.40
Tangible book value per common share	$	15.11		$	14.94		$	14.60		$	14.13		$	13.89
Price / book value		188.87	%		144.91	%		134.19	%		119.80	%		134.19	%
Price / tangible book value		278.96	%		214.07	%		200.05	%		182.10	%		206.84	%
Weighted average diluted shares outstanding		17,164,675			17,072,358			17,027,419			16,883,364			17,129,234			17,037,114			17,756,571
Shares outstanding, end of period		16,939,715			16,893,878			16,824,564			16,801,801			17,071,523
Wealth Management Information:
Wealth assets under mgmt, administration, supervision and brokerage(2)	$	11,328,457		$	9,969,745		$	9,632,521		$	9,281,743		$	8,364,805
Fees for wealth management services	$	9,327		$	9,100		$	9,431		$	8,832		$	8,995

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 Twelve Months Ended
	December 31, 2016			September 30, 2016			June 30, 2016			March 31, 2016			December 31, 2015			December 31, 2016			December 31, 2015
Capital Ratios
Bryn Mawr Trust Company
Tier I capital to risk weighted assets ("RWA")		10.51	%		10.99	%		10.94	%		10.69	%		10.12	%
Total (Tier II) capital to RWA		11.20	%		11.70	%		11.65	%		11.39	%		10.78	%
Tier I leverage ratio		8.73	%		9.17	%		9.06	%		9.15	%		8.51	%
Tangible equity ratio(1)		7.85	%		8.85	%		8.79	%		8.53	%		7.74	%
Common equity Tier I capital to RWA		10.51	%		10.99	%		10.94	%		10.69	%		10.12	%
Bryn Mawr Bank Corporation
Tier I capital to RWA		10.52	%		10.42	%		10.45	%		10.22	%		10.72	%
Total (Tier II) capital to RWA		12.36	%		12.30	%		12.35	%		12.13	%		12.61	%
Tier I leverage ratio		8.74	%		8.70	%		8.65	%		8.76	%		9.02	%
Tangible equity ratio(1)		7.76	%		8.28	%		8.29	%		8.10	%		8.17	%
Common equity Tier I capital to RWA		10.52	%		10.42	%		10.45	%		10.22	%		10.72	%
Asset Quality Indicators
Net loan and lease charge-offs ("NCO"s)	$	1,317		$	704		$	254		$	422		$	1,855		$	2,697		$	3,125
Nonperforming loans and leases ("NPL"s)	$	8,363		$	9,883		$	9,617		$	9,636		$	10,244
Other real estate owned ("OREO")		1,017			867			784			756			2,638
Total nonperforming assets ("NPA"s)	$	9,380		$	10,750		$	10,401		$	10,392		$	12,882
Nonperforming loans and leases 30 or more days past due	$	6,075		$	4,339		$	5,599		$	6,193		$	5,678
Performing loans and leases 30 to 89 days past due		7,768			2,491			3,564			6,296			5,601
Performing loans and leases 90 or more days past due		-			-			-			-			-
Total delinquent loans and leases	$	13,843		$	6,830		$	9,163		$	12,489		$	11,279
Delinquent loans and leases to total loans and leases		0.54	%		0.27	%		0.38	%		0.52	%		0.50	%
Delinquent performing loans and leases to total loans and leases		0.31	%		0.10	%		0.15	%		0.26	%		0.25	%
NCOs / average loans and leases (annualized)		0.21	%		0.11	%		0.04	%		0.07	%		0.33	%		0.11	%		0.14	%
NPLs / total portfolio loans and leases		0.33	%		0.40	%		0.40	%		0.41	%		0.45	%
NPAs / total loans and leases and OREO		0.37	%		0.43	%		0.43	%		0.44	%		0.56	%
ALLL / NPLs		209.09	%		179.54	%		177.14	%		174.81	%		154.79	%
ALLL / portfolio loans		0.69	%		0.71	%		0.70	%		0.71	%		0.70	%
ALLL on originated loans and leases / Originated loans and leases (1)		0.78	%		0.81	%		0.81	%		0.83	%		0.84	%
(Total Allowance + Loan mark) / Total Gross portfolio loans and leases(1)		1.17	%		1.24	%		1.30	%		1.37	%		1.44	%
Troubled debt restructurings ("TDR"s) included in NPLs	$	2,375		$	1,680		$	1,779		$	1,756		$	1,935
TDRs in compliance with modified terms		6,395			6,305			4,984			4,893			4,880
Total TDRs	$	8,770		$	7,985		$	6,763		$	6,649		$	6,815

⁽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)

	December 31, 2016			September 30, 2016			June 30, 2016			March 31, 2016			December 31, 2015
Assets
Cash and due from banks	$	16,559		$	18,905		$	13,710		$	15,594		$	18,452
Interest-bearing deposits with banks		34,206			30,118			20,481			33,954			124,615
Cash and cash equivalents		50,765			49,023			34,191			49,548			143,067
Investment securities, available for sale		566,996			366,910			365,470			365,819			348,966
Investment securities, held to maturity		2,879			2,896			2,915			-			-
Investment securities, trading		3,888			3,702			3,521			3,642			3,950
Loans held for sale		9,621			11,506			11,882			7,807			8,987
Portfolio loans and leases, originated		2,240,988			2,176,549			2,090,070			2,015,683			1,883,869
Portfolio loans and leases, acquired		294,437			316,808			333,751			363,158			385,119
Total portfolio loans and leases		2,535,425			2,493,357			2,423,821			2,378,841			2,268,988
Less: Allowance for losses on originated loan and leases		(17,458	)		(17,716	)		(17,008	)		(16,817	)		(15,857	)
Less: Allowance for losses on acquired loan and leases		(28	)		(28	)		(28	)		(28	)		-
Total allowance for loan and lease losses		(17,486	)		(17,744	)		(17,036	)		(16,845	)		(15,857	)
Net portfolio loans and leases		2,517,939			2,475,613			2,406,785			2,361,996			2,253,131
Premises and equipment		41,778			42,559			43,607			44,712			45,339
Accrued interest receivable		8,533			8,066			8,144			8,205			7,869
Mortgage servicing rights		5,582			4,793			4,646			5,182			5,142
Bank owned life insurance		39,279			39,055			38,836			38,616			38,371
Federal Home Loan Bank ("FHLB") stock		13,185			13,185			10,618			12,142			12,942
Goodwill		104,765			104,765			104,765			104,765			104,765
Intangible assets		20,405			21,235			22,123			23,012			23,903
Other investments		12,747			9,121			8,722			8,487			9,460
Other assets		23,168			21,651			23,865			24,314			25,105
Total assets	$	3,421,530		$	3,174,080		$	3,090,090		$	3,058,247		$	3,030,997
Liabilities
Deposits
Noninterest-bearing	$	736,180		$	718,015		$	689,214		$	643,492		$	626,684
Interest-bearing		1,843,495			1,759,862			1,720,477			1,700,550			1,626,041
Total deposits		2,579,675			2,477,877			2,409,691			2,344,042			2,252,725
Short-term borrowings		204,151			50,065			19,119			37,010			94,167
Long-term FHLB advances and other borrowings		189,742			204,772			224,802			249,832			254,863
Subordinated notes		29,532			29,518			29,505			29,491			29,479
Accrued interest payable		2,734			1,854			1,846			1,294			1,851
Other liabilities		34,569			31,535			32,660			31,401			32,201
Total liabilities		3,040,403			2,795,621			2,717,623			2,693,070			2,665,286
Shareholders' equity
Common stock		21,111			21,064			20,972			20,949			20,931
Paid-in capital in excess of par value		232,806			231,398			230,298			229,432			228,814
Less: common stock held in treasury, at cost		(66,950	)		(66,895	)		(66,200	)		(66,140	)		(58,144	)
Accumulated other comprehensive income (loss), net of tax		(2,409	)		2,128			2,488			1,502			(412	)
Retained earnings		196,569			190,764			184,909			179,434			174,522
Total shareholders equity		381,127			378,459			372,467			365,177			365,711
Total liabilities and shareholders' equity	$	3,421,530		$	3,174,080		$	3,090,090		$	3,058,247		$	3,030,997

Bryn Mawr Bank Corporation

Supplemental Balance Sheet Information (unaudited)

(dollars in thousands)

	Portfolio Loans and Leases as of
	December 31, 2016		September 30, 2016		June 30, 2016		March 31, 2016		December 31, 2015
Commercial mortgages	$	1,110,897	$	1,089,621	$	1,055,934	$	1,044,415	$	964,259
Home equity loans and lines		208,000		206,578		202,989		205,896		209,473
Residential mortgages		413,540		418,408		414,863		412,006		406,404
Construction		141,964		133,269		133,313		119,193		90,421
Total real estate loans		1,874,401		1,847,876		1,807,099		1,781,510		1,670,557
Commercial & Industrial		579,791		565,497		538,684		523,053		524,515
Consumer		25,341		23,717		21,561		21,427		22,129
Leases		55,892		56,267		56,477		52,851		51,787
Total non-real estate loans and leases		661,024		645,481		616,722		597,331		598,431
Total portfolio loans and leases	$	2,535,425	$	2,493,357	$	2,423,821	$	2,378,841	$	2,268,988

	Nonperforming Loans and Leases as of
	December 31, 2016		June 30, 2016		March 31, 2016		December 31, 2015		September 30, 2015
Commercial mortgages	$	320	$	139	$	139	$	872	$	829
Home equity loans and lines		2,297		2,827		3,011		1,953		2,027
Residential mortgages		2,661		2,845		2,909		2,923		3,212
Construction		-		-		-		12		34
Total nonperforming real estate loans		5,278		5,811		6,059		5,760		6,102
Commercial & Industrial		2,369		3,960		3,457		3,822		4,133
Consumer		2		2		4		-		-
Leases		137		110		97		54		9
Total nonperforming non-real estate loans and leases		2,508		4,072		3,558		3,876		4,142
Total nonperforming portfolio loans and leases	$	7,786	$	9,883	$	9,617	$	9,636	$	10,244

	Net Loan and Lease Charge-Offs (Recoveries) for the Three Months Ended
	December 31, 2016			June 30, 2016			March 31, 2016			December 31, 2015			September 30, 2015
Commercial mortgage	$	(51	)	$	(4	)	$	(3	)	$	107		$	(4	)
Home equity loans and lines		69			375			11			71			561
Residential		28			2			262			(35	)		239
Construction		(1	)		-			(62	)		-			(1	)
Total net charge-offs (recoveries) of real estate loans		45			373			208			143			795
Commercial & Industrial		1,128			95			(44	)		25			902
Consumer		42			58			30			20			55
Leases		102			178			60			234			103
Total net charge-offs of non-real estate loans and leases		1,272			331			46			279			1,060
Total net charge-offs	$	1,317		$	704		$	254		$	422		$	1,855

Bryn Mawr Bank Corporation

Supplemental Balance Sheet Information (unaudited)

(dollars in thousands)

	Investment Securities Available for Sale, at Fair Value
	December 31, 2016		September 30, 2016		June 30, 2016		March 31, 2016		December 31, 2015
U.S. Treasury securities	$	200,097	$	101	$	102	$	102	$	101
Obligations of the U.S. Government and agencies		82,198		76,598		86,134		96,080		101,495
State & political subdivisions - tax-free		33,005		36,735		39,047		39,502		41,442
State & political subdivisions - taxable		525		529		532		1,093		524
Mortgage-backed securities		185,951		184,919		186,354		183,127		158,689
Collateralized mortgage obligations		48,694		51,344		36,702		29,106		29,799
Other debt securities		1,299		1,450		1,450		1,700		1,691
Bond mutual funds		11,895		11,847		11,774		11,725		11,810
Other investments		3,332		3,387		3,375		3,384		3,415
Total	$	566,996	$	366,910	$	365,470	$	365,819	$	348,966

	Unrealized Gain (Loss) on Investment Securities Available for Sale
	December 31, 2016			September 30, 2016			June 30, 2016			March 31, 2016			December 31, 2015
U.S. Treasury securities	$	3		$	-		$	1		$	1		$	-
Obligations of the U.S. Government and agencies		(913	)		946			1,183			984			153
State & political subdivisions - tax-free		(96	)		131			240			173			75
State & political subdivisions - taxable		2			5			8			18			(1	)
Mortgage-backed securities		(47	)		3,801			3,958			3,026			1,267
Collateralized mortgage obligations		(794	)		253			496			330			43
Other debt securities		(1	)		-			-			-			(9	)
Bond mutual funds		(61	)		(109	)		(182	)		(231	)		(146	)
Other investments		13			34			(66	)		(155	)		(192	)
Total	$	(1,894	)	$	5,061		$	5,638		$	4,146		$	1,190

	Deposits
	December 31, 2016		September 30, 2016		June 30, 2016		March 31, 2016		December 31, 2015
Interest-bearing deposits:
Interest-bearing checking	$	379,424	$	333,055	$	333,425	$	335,240	$	338,861
Money market		761,657		725,116		718,144		773,637		749,726
Savings		232,193		228,391		217,877		190,477		187,299
Wholesale non-maturity deposits		74,272		64,664		58,690		62,454		67,717
Wholesale time deposits		73,037		99,052		113,274		131,145		53,185
Retail time deposits		322,912		309,584		279,067		207,597		229,253
Total interest-bearing deposits		1,843,495		1,759,862		1,720,477		1,700,550		1,626,041
Noninterest-bearing deposits		736,180		718,015		689,214		643,492		626,684
Total deposits	$	2,579,675	$	2,477,877	$	2,409,691	$	2,344,042	$	2,252,725

Bryn Mawr Bank Corporation

Detailed Income Statements (unaudited)

(dollars in thousands, except per share data)

	For the Three Months Ended															For the Twelve Months Ended
	December 31, 2016			September 30, 2016			June 30, 2016			March 31, 2016			December 31, 2015			December 31, 2016			December 31, 2015
Interest income:
Interest and fees on loans and leases	$	28,230		$	27,931		$	27,679		$	26,696		$	26,080		$	110,536		$	102,432
Interest on cash and cash equivalents		53			27			42			46			63			168			409
Interest on investment securities:		1,639			1,556			1,565			1,527			1,623			6,287			5,701
Taxable		1,467			1,373			1,384			1,351			1,402			5,575			5,018
Non-taxable		118			125			126			128			131			497			497
Dividends		54			58			55			48			90			215			186
Total interest income		29,922			29,514			29,286			28,269			27,766			116,991			108,542
Interest expense:
Interest on deposits		1,780			1,575			1,402			1,076			1,046			5,833			4,212
Interest on short-term borrowings		22			34			20			17			9			93			48
Interest on FHLB advances and other borrowings		760			818			867			908			912			3,353			3,554
Interest on subordinated notes		370			370			370			366			370			1,476			601
Total interest expense		2,932			2,797			2,659			2,367			2,337			10,755			8,415
Net interest income		26,990			26,717			26,627			25,902			25,429			106,236			100,127
Provision for loan and lease losses (the "Provision")		1,059			1,412			445			1,410			1,777			4,326			4,396
Net interest income after Provision		25,931			25,305			26,182			24,492			23,652			101,910			95,731
Noninterest income:
Fees for wealth management services		9,327			9,100			9,431			8,832			8,995			36,690			36,894
Insurance revenue		715			886			845			1,276			842			3,722			3,745
Service charges on deposits		688			688			713			702			742			2,791			2,927
Loan servicing and other fees		411			497			539			492			502			1,939			2,087
Net gain on sale of loans		478			985			896			760			751			3,119			3,022
Net gain (loss) on sale of investment securities available for sale		9			(28	)		(43	)		(15	)		58			(77	)		931
Net (loss) gain on sale of other real estate owned		-			-			-			(76	)		33			(76	)		123
Dividends on FHLB and FRB stocks		309			277			263			214			330			1,063			1,382
Other operating income		1,182			1,487			1,176			1,023			1,415			4,868			4,849
Total noninterest income		13,119			13,892			13,820			13,208			13,668			54,039			55,960
Noninterest expense:
Salaries and wages		11,855			11,621			12,197			11,738			11,700			47,411			44,575
Employee benefits		2,207			2,420			2,436			2,485			2,268			9,548			10,205
Loss on pension termination		-			-			-			-			17,377			-			17,377
Occupancy and bank premises		2,407			2,349			2,367			2,488			2,474			9,611			10,305
Branch lease termination expense		-			-			-			-			929			-			929
Furniture, fixtures and equipment		1,869			1,837			1,895			1,919			2,129			7,520			6,841
Advertising		391			334			372			284			656			1,381			2,102
Amortization of intangible assets		830			888			889			891			937			3,498			3,827
Impairment of intangible assets		-			-			-			-			387			-			387
(Recovery) impairment of mortgage servicing rights ("MSRs")		(580	)		29			599			83			(17	)		131			70
Due diligence, merger-related and merger integration expenses		-			-			-			-			1,860			-			6,670
Professional fees		963			937			946			813			1,010			3,659			3,353
Pennsylvania bank shares tax		(204	)		675			640			638			(46	)		1,749			1,253
Information technology		857			881			875			1,048			874			3,661			3,443
Other operating expenses		4,363			3,506			3,043			2,664			4,413			13,576			14,428
Total noninterest expense		24,958			25,477			26,259			25,051			46,951			101,745			125,765
Income (loss) before income taxes		14,092			13,720			13,743			12,649			(9,631	)		54,204			25,926
Income tax expense (benefit)		4,684			4,346			4,810			4,328			(3,276	)		18,168			9,172
Net income (loss)	$	9,408		$	9,374		$	8,933		$	8,321		$	(6,355	)	$	36,036		$	16,754
Per share data:
Weighted average shares outstanding		16,916,705			16,860,727			16,812,219			16,848,202			17,129,234			16,859,623			17,488,325
Dilutive common shares		247,970			211,631			215,200			35,162			-			177,491			268,246
Adjusted weighted average diluted shares		17,164,675			17,072,358			17,027,419			16,883,364			17,129,234			17,037,114			17,756,571
Basic earnings (loss) per common share	$	0.56		$	0.56		$	0.53		$	0.49		$	(0.37	)	$	2.14		$	0.96
Diluted earnings (loss) per common share	$	0.55		$	0.55		$	0.52		$	0.49		$	(0.37	)	$	2.12		$	0.94
Dividend declared per share	$	0.21		$	0.21		$	0.20		$	0.20		$	0.20		$	0.82		$	0.78
Effective tax rate		33.24	%		31.68	%		35.09	%		34.59	%		34.02	%		33.52	%		35.38	%

Bryn Mawr Bank Corporation

Tax-Equivalent Net Interest Margin (unaudited)

(dollars in thousands, except per share data)

	For The Three Months Ended																																									For The Twelve Months Ended
	December 31, 2016								September 30, 2016								June 30, 2016								March 31, 2016								December 31, 2015									December 31, 2016								December 31, 2015
(dollars in thousands)	Average Balance			Interest Income/ Expense		Average Rates Earned/ Paid			Average Balance			Interest Income/ Expense		Average Rates Earned/ Paid			Average Balance			Interest Income/ Expense		Average Rates Earned/ Paid			Average Balance			Interest Income/ Expense		Average Rates Earned/ Paid			Average Balance			Interest Income/ Expense		Average Rates Earned/ Paid				Average Balance			Interest Income/ Expense		Average Rates Earned/ Paid			Average Balance			Interest Income/ Expense		Average Rates Earned/ Paid
Assets:
Interest-bearing deposits with other banks	$	55,298		$	53		0.38	%	$	33,532		$	27		0.32	%	$	44,950		$	42		0.38	%	$	39,050		$	46		0.47	%	$	90,832		$	63		0.28	%		$	43,214		$	168		0.39	%	$	184,689		$	346		0.25	%
Investment securities - available for sale:
Taxable		344,931			1,498		1.73	%		329,293			1,423		1.72	%		325,893			1,433		1.77	%		316,353			1,397		1.78	%		307,524			1,432		1.85	%			329,161			5,784		1.76	%		318,510			3,691		1.55	%
Tax-exempt		34,985			175		1.99	%		37,893			189		1.98	%		39,193			187		1.92	%		40,658			191		1.89	%		43,144			195		1.79	%			38,173			742		1.94	%		37,871			546		1.93	%
Total investment securities - available for sale		379,916			1,673		1.75	%		367,186			1,612		1.75	%		365,086			1,620		1.78	%		357,011			1,588		1.79	%		350,668			1,627		1.84	%			367,334			6,526		1.78	%		356,381			4,237		1.59	%
Investment securities - held to maturity		2,889			7		0.96	%		2,907			6		0.82	%		2,427			4		0.66	%		-			-					-			-		0.00	%			2,060			4		0.19	%		-			-
Investment securities - trading		3,853			16		1.65	%		3,523			2		0.23	%		3,640			2		0.22	%		3,946			2		0.20	%		3,571			60		6.67	%			3,740			2		0.05	%		3,985			21		0.70	%
Loans and leases *		2,517,967			28,354		4.48	%		2,476,972			28,032		4.50	%		2,412,643			27,761		4.63	%		2,308,584			26,778		4.67	%		2,247,720			26,158		4.62	%			2,429,416			110,925		4.57	%		2,131,278			76,548		4.80	%
Total interest-earning assets		2,959,923			30,103		4.05	%		2,884,120			29,679		4.09	%		2,828,746			29,429		4.18	%		2,708,591			28,414		4.22	%		2,692,791			27,908		4.11	%			2,845,764			117,625		4.13	%		2,676,333			81,152		4.05	%
Cash and due from banks		16,127								16,228								16,413								16,501								18,005									16,317								17,484
Less: allowance for loan and lease losses		(17,858	)							(17,257	)							(17,271	)							(16,239	)							(16,106	)								(17,159	)							(14,760	)
Other assets		257,676								258,928								262,065								264,295								264,321									260,728								257,896
Total assets	$	3,215,868							$	3,142,019							$	3,089,953							$	2,973,148							$	2,959,011								$	3,105,650							$	2,936,953
Liabilities:
Interest-bearing deposits:
Savings, NOW and market rate deposits	$	1,328,577		$	686		0.21	%	$	1,286,404		$	641		0.20	%	$	1,273,964		$	589		0.19	%	$	1,279,630		$	569		0.18	%	$	1,260,575		$	565		0.18	%		$	1,292,228		$	2,485		0.19	%	$	1,245,857		$	1,753		0.19	%
Wholesale deposits		156,541			319		0.81	%		164,706			327		0.79	%		196,517			361		0.74	%		137,201			233		0.68	%		119,394			186		0.62	%			163,724			1,240		0.76	%		134,607			586		0.58	%
Retail time deposits		324,158			775		0.95	%		278,579			607		0.87	%		246,771			452		0.74	%		216,820			274		0.51	%		231,605			295		0.51	%			266,772			2,108		0.79	%		264,168			827		0.42	%
Total interest-bearing deposits		1,809,276			1,780		0.39	%		1,729,689			1,575		0.36	%		1,717,252			1,402		0.33	%		1,633,651			1,076		0.26	%		1,611,574			1,046		0.26	%			1,722,724			5,833		0.34	%		1,644,632			3,166		0.26	%
Borrowings:
Short-term borrowings		40,629			22		0.22	%		40,966			34		0.33	%		32,328			20		0.25	%		34,158			17		0.20	%		26,092			9		0.14	%			37,041			93		0.25	%		39,352			39		0.13	%
Long-term FHLB advances and other borrowings		198,454			760		1.52	%		218,920			818		1.49	%		236,248			867		1.48	%		250,015			908		1.46	%		254,880			912		1.42	%			225,815			3,353		1.48	%		254,810			2,642		1.39	%
Subordinated notes		29,523			370		4.99	%		29,509			370		4.99	%		29,496			370		5.05	%		29,482			366		4.99	%		29,471			370		4.98	%			29,503			1,476		5.00	%		6,130			231		5.04	%
Total borrowings		268,606			1,152		1.71	%		289,395			1,222		1.68	%		298,072			1,257		1.70	%		313,655			1,291		1.66	%		310,443			1,291		1.65	%			292,359			4,922		1.68	%		300,292			2,912		1.30	%
Total interest-bearing liabilities		2,077,882			2,932		0.56	%		2,019,084			2,797		0.55	%		2,015,324			2,659		0.53	%		1,947,306			2,367		0.49	%		1,922,017			2,337		0.48	%			2,015,083			10,755		0.53	%		1,944,924			6,078		0.42	%
Noninterest-bearing deposits		724,465								716,581								675,710								631,047								634,969							��		687,134								580,356
Other liabilities		35,478								33,400								32,804								33,923								36,665									33,904								35,978
Total noninterest-bearing liabilities		759,944								749,981								708,514								664,970								671,634									721,038								616,334
Total liabilities		2,837,826								2,769,065								2,723,838								2,612,276								2,593,651									2,736,121								2,561,258
Shareholders' equity		378,043								372,954								366,115								360,872								365,360									369,529								375,695
Total liabilities and shareholders' equity	$	3,215,868							$	3,142,019							$	3,089,953							$	2,973,148							$	2,959,011								$	3,105,650							$	2,936,953
Interest income to earning assets							4.05	%							4.09	%							4.18	%							4.22	%							4.11	%								4.13	%							4.05	%
Net interest spread							3.49	%							3.54	%							3.65	%							3.73	%							3.63	%								3.60	%							3.63	%
Effect of noninterest-bearing sources							0.16	%							0.17	%							0.16	%							0.14	%							0.14	%								0.16	%							0.12	%
Tax-equivalent net interest margin				$	27,171		3.65	%				$	26,882		3.71	%				$	26,770		3.81	%				$	26,047		3.87	%				$	25,571		3.77	%					$	106,870		3.76	%				$	75,074		3.75	%
Tax-equivalent adjustment				$	181		0.02	%				$	165		0.02	%				$	143		0.02	%				$	145		0.02	%				$	142		0.02	%					$	634		0.02	%				$	376		0.02	%

Supplemental Information Regarding Accretion of Fair Value Marks                                          

	Interest Income (Expense) Effect			Effect on Yield or Rate			Interest Income (Expense) Effect			Effect on Yield or Rate			Interest Income (Expense) Effect			Effect on Yield or Rate			Interest Income (Expense) Effect			Effect on Yield or Rate			Interest Income (Expense) Effect			Effect on Yield or Rate			Interest Income (Expense) Effect			Effect on Yield or Rate			Interest Income (Expense) Effect			Effect on Yield or Rate
Loans and leases	$	742			0.12	%	$	578			0.09	%	$	1,076			0.18	%	$	953			0.17	%	$	707			0.12	%	$	3,349			0.14	%	$	3,136			0.15	%
Retail time deposits		(19	)		-0.02	%		(29	)		-0.04	%		(61	)		-0.10	%		(110	)		-0.20	%		(123	)		-0.21	%		(219	)		-0.08	%		(638	)		-0.24	%
Short-term borrowings		-			0.00	%		-			0.00	%		-			0.00	%		(12	)		-0.14	%		(35	)		-0.53	%		(12	)		-0.03	%		(104	)		-0.26	%
Long-term FHLB advances and other borrowings		(30	)		-0.06	%		(30	)		-0.05	%		(30	)		-0.05	%		(30	)		-0.05	%		(30	)		-0.05	%		(120	)		-0.05	%		(96	)		-0.04	%
Net interest income from fair value marks	$	791					$	637					$	1,167					$	1,105					$	895					$	3,700					$	3,974
Purchase accounting effect on tax-equivalent margin					0.11	%					0.09	%					0.17	%					0.16	%					0.13	%					0.13	%					0.15	%

* 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 Twelve Months Ended
	December 31, 2016			September 30, 2016			June 30, 2016			March 31, 2016			December 31, 2015			December 31, 2016			December 31, 2015
Reconciliation of Net Income to Net Income (core):
Net income (loss) (a GAAP measure)	$	9,408		$	9,374		$	8,933		$	8,321		$	(6,355	)	$	36,036		$	16,754
Less: Tax-effected non-core noninterest income:
Loss (gain) on sale of investment securities available for sale		(6	)		18			28			10			(38	)		50			(605	)
Add: Tax-effected non-core noninterest expense items:
Loss on pension termination		-			-			-			-			11,295			-			11,295
Severance expense (Salaries and wages)		-			-			-			-			142			-			265
Branch lease termination expense		-			-			-			-			604			-			604
Debt and swap prepayment penalty (Other operating expenses)		-			-			-			-			397			-			735
Impairment of intangible assets		-			-			-			-			252			-			252
Due diligence, merger-related and merger integration expenses		-			-			-			-			1,209			-			4,336
Net income (core) (a non-GAAP measure)	$	9,402		$	9,392		$	8,961		$	8,331		$	7,506		$	36,086		$	33,636
Calculation of Basic and Diluted Earnings per Common Share (core):
Weighted average common shares outstanding		16,916,705			16,860,727			16,812,219			16,848,202			17,129,234			16,859,623			17,488,328
Dilutive common shares		247,970			211,631			215,200			35,162			112,783			177,491			268,246
Adjusted weighted average diluted shares		17,164,675			17,072,358			17,027,419			16,883,364			17,242,017			17,037,114			17,756,574
Basic earnings per common share (core) (a non-GAAP measure)	$	0.56		$	0.56		$	0.53		$	0.49		$	0.44		$	2.14		$	1.92
Diluted earnings per common share (core) (a non-GAAP measure)	$	0.55		$	0.55		$	0.53		$	0.49		$	0.44		$	2.12		$	1.89
Calculation of Return on Average Tangible Equity:
Net income (loss)	$	9,408		$	9,374		$	8,933		$	8,321		$	(6,355	)	$	36,036		$	16,754
Add: Tax-effected amortization and impairment of intangible assets		540			577			578			579			861			2,274			2,739
Net tangible income (numerator)	$	9,948		$	9,951		$	9,511		$	8,900		$	(5,494	)	$	38,310		$	19,493
Average shareholders' equity	$	378,043		$	372,954		$	366,115		$	360,872		$	365,360		$	369,529		$	373,088
Less: Average goodwill and intangible assets		(125,614	)		(126,505	)		(127,402	)		(128,296	)		(129,292	)		(126,950	)		(128,181	)
Net average tangible equity (denominator)	$	252,429		$	246,449		$	238,713		$	232,576		$	236,068		$	242,579		$	244,907
Return on tangible equity (a non-GAAP measure)		15.68	%		16.06	%		16.02	%		15.39	%		-9.23	%		15.79	%		7.96	%
Calculation of Tangible Equity Ratio:
Total shareholders' equity	$	381,127		$	378,459		$	372,467		$	365,177		$	365,711
Less: Goodwill and intangible assets		(125,170	)		(126,000	)		(126,888	)		(127,777	)		(128,668	)
Net tangible equity (numerator)	$	255,957		$	252,459		$	245,579		$	237,400		$	237,043
Total assets	$	3,421,530		$	3,174,080		$	3,090,090		$	3,058,247		$	3,030,997
Less: Goodwill and intangible assets		(125,170	)		(126,000	)		(126,888	)		(127,777	)		(128,668	)
Tangible assets (denominator)	$	3,296,360		$	3,048,080		$	2,963,202		$	2,930,470		$	2,902,329
Tangible equity ratio		7.76	%		8.28	%		8.29	%		8.10	%		8.17	%

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 Twelve Months Ended
	December 31, 2016			September 30, 2016			June 30, 2016			March 31, 2016			December 31, 2015			December 31, 2016			December 31, 2015
Calculation of Efficiency Ratio:
Noninterest expense	$	24,958		$	25,477		$	26,259		$	25,051		$	46,951		$	101,745		$	125,765
Less: certain noninterest expense items*:
Loss on pension termination		-			-			-			-			(17,377	)		-			(17,377	)
Severance expense (Salaries and wages)		-			-			-			-			(218	)		-			(408	)
Branch lease termination expense		-			-			-			-			(929	)		-			(929	)
Debt and swap prepayment penalty (Other operating expenses)		-			-			-			-			(611	)		-			(1,131	)
Amortization of intangibles		(830	)		(888	)		(889	)		(891	)		(937	)		(3,498	)		(3,827	)
Impairment of intangible assets		-			-			-			-			(388	)		-			(388	)
Due diligence, merger-related and merger integration expenses		-			-			-			-			(1,860	)		-			(6,670	)
Noninterest expense (adjusted) (numerator)	$	24,128		$	24,589		$	25,370		$	24,160		$	24,631		$	98,247		$	95,035
Noninterest income	$	13,119		$	13,892		$	13,820		$	13,208		$	13,668		$	54,039		$	55,960
Less: non-core noninterest income items:
Loss (gain) on sale of investment securities available for sale		(9	)		28			43			15			(58	)		77			(931	)
Noninterest income (core)	$	13,110		$	13,920		$	13,863		$	13,223		$	13,610		$	54,116		$	55,029
Net interest income		26,990			26,717			26,627			25,902			25,429			106,236			100,127
Noninterest income (core) and net interest income (denominator)	$	40,100		$	40,637		$	40,490		$	39,125		$	39,039		$	160,352		$	155,156
Efficiency ratio		60.17	%		60.51	%		62.66	%		61.75	%		63.09	%		61.27	%		61.25	%

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

Supplemental Loan and Allowance Information Used to Calculate Non-GAAP Measures
Total Allowance	$	17,486	$	17,744	$	17,036	$	16,845	$	15,857
less: Allowance on acquired loans		28		28		28		28		-
Allowance on originated loans and leases	$	17,458	$	17,716	$	17,008	$	16,817	$	15,857
Total Allowance	$	17,486	$	17,744	$	17,036	$	16,845	$	15,857
Loan mark on acquired loans		12,286		13,391		14,566		15,930		17,108
Total Allowance + Loan mark	$	29,772	$	31,135	$	31,602	$	32,775	$	32,965
Total Portfolio loans and leases	$	2,535,425	$	2,493,357	$	2,423,821	$	2,378,841	$	2,268,988
less: Originated loans and leases		2,240,988		2,176,549		2,090,070		2,015,683		1,883,869
Net acquired loans	$	294,437	$	316,808	$	333,751	$	363,158	$	385,119
add: Loan mark on acquired loans		12,286		13,391		14,566		15,930		17,108
Gross acquired loans (excludes loan mark)	$	306,723	$	330,199	$	348,317	$	379,088	$	402,227
Originated loans and leases		2,240,988		2,176,549		2,090,070		2,015,683		1,883,869
Total Gross portfolio loans and leases	$	2,547,711	$	2,506,748	$	2,438,387	$	2,394,771	$	2,286,096