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Bryn Mawr Bank Corporation Reports First Quarter Net Income of $8.3 Million, Driven by Strong Loan Growth, Net Interest Margin Expansion and Reduced Operating Expenses; Core Net Income Up From Prior Quarter

BRYN MAWR, Pa., April 28, 2016 (GLOBE NEWSWIRE) -- Bryn Mawr Bank Corporation (NASDAQ:BMTC) (the “Corporation”), parent of The Bryn Mawr Trust Company (the “Bank”), today reported net income of $8.3 million and diluted earnings per share of $0.49 for the three months ended March 31, 2016, as compared to a net loss of $6.4 million, or $(0.37) diluted loss per share for the three months ended December 31, 2015 and net income of $7.5 million, or $0.42 diluted earnings per share for the three months ended March 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 $8.3 million for the three months ended March 31, 2016 as compared to $7.5 million for the three months ended December 31, 2015 and $8.9 million for the three months ended March 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 are very pleased to start the new year on a positive note,” commented Frank Leto, President and Chief Executive Officer, continuing, “Many of the decisions we made in 2015, which included the addition of new teams and talent, branch and office consolidations, significant investments in technology, and the settlement of our corporate pension plan, to name a few, positioned the Corporation well for a strong start to the new year and provide a solid foundation from which we will drive long-term performance.” Mr. Leto added, “The outstanding loan growth during the first quarter of 2016, which exceeded 19% annualized, along with a 41% increase in mortgage originations during the first quarter of 2016, compared to the first quarter of 2015, as well as the continued growth in our wealth assets are all promising indicators for the remainder of 2016.”

On April 28, 2016, the Board of Directors of the Corporation declared a quarterly dividend of $0.20 per share, payable June 1, 2016 to shareholders of record as of May 10, 2016.

SIGNIFICANT ITEMS OF NOTE
Results of Operations – First Quarter 2016 Compared to Fourth Quarter 2015

  • Net income for the three months ended March 31, 2016 was $8.3 million, as compared to a net loss of $6.4 million for the three months ended December 31, 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 first quarter of 2016 of $8.3 million was a $778 thousand increase from core net income of $7.5 million for the fourth quarter of 2015. The increase in core net income was primarily driven by a $473 thousand increase in net interest income and a $367 thousand decrease in the provision for loan and lease losses (the “Provision”).
  • Net interest income for the three months ended March 31, 2016 was $25.9 million, an increase of $473 thousand from $25.4 million for the three months ended December 31, 2015. The increase in net interest income between the periods was largely related to loan growth during the first quarter of 2016. Average loans and leases for the three months ended March 31, 2016 increased by $60.9 million as compared to the fourth quarter of 2015. The increase in average loans was accompanied by a 5 basis point increase in tax-equivalent yield earned on loans, resulting in a $616 thousand increase in interest income on loans and leases. Partially offsetting the increase in average loans and leases was a $51.8 million decrease in average interest-bearing deposits with banks. This decrease in cash deposits resulted in a $17 thousand decrease in interest earned on deposits with banks. On the liability side, average interest-bearing deposits increased by $22.1 million, resulting in a $30 thousand increase in interest expense on deposits.
  • The tax-equivalent net interest margin of 3.87% for the three months ended March 31, 2016 increased 10 basis points from 3.77% for the fourth quarter of 2015. The increase was primarily the result of a $60.9 million increase in average loans and leases during the first quarter of 2016. The tax equivalent yield earned on loans and leases during the first quarter of 2016 was 4.67%. The increase in average loans and leases was largely offset by a $51.8 million decrease in average interest-bearing deposits with banks, which earned interest at a rate of 0.47% during the first quarter of 2016 and 0.28% during the fourth quarter of 2015. The contribution of fair value mark accretion to the tax equivalent net interest margin accounted for 16 basis points of the margin for the first quarter of 2016 as compared to 13 basis points for the fourth quarter of 2015.
  • Non-interest income for the three months ended March 31, 2016 decreased $460 thousand from the fourth quarter of 2015. The decrease was related to a decrease in fees for wealth management services of $163 thousand, a $76 thousand loss on sale of other real estate owned, a $116 thousand decrease in dividends on Federal Home Loan Bank (“FHLB”) and Federal Reserve Bank (“FRB”) stocks, and a $392 thousand decrease in other operating income. The decrease in other operating income was related to the $319 thousand of noninterest income recorded in the fourth quarter of 2015 in connection with the full payoff of a purchased credit-impaired loan. Partially offsetting the decreases was an increase of $434 thousand in insurance revenues related to contingent commissions received from insurance carriers.
  • Non-interest expense for the three months ended March 31, 2016 decreased $21.9 million, to $25.1 million, as compared to $47.0 million for the fourth quarter of 2015. The primary cause for the decrease was a $17.4 million loss on settlement of the corporate pension plan and a $929 thousand branch lease termination expense recorded in the fourth quarter of 2015, both of which did not reoccur, and a $1.9 million decrease in due diligence, merger-related and merger integration costs between the periods. Partially offsetting these decreases was a $684 thousand increase in Pennsylvania bank shares tax. The Pennsylvania bank shares tax is based on the Bank’s equity base as of December 31, 2015, which increased due to the acquisition of Continental Bank. In addition, during the fourth quarter of 2015, the Bank received tax credits related to its contributions under the Pennsylvania Educational Improvement Tax Credit (EITC) program.
  • For the three months ended March 31, 2016, the Corporation recorded net loan and lease charge-offs of $422 thousand, as compared to $1.9 million for the fourth quarter of 2015. The Provision for the three months ended March 31, 2016 was $1.4 million, as compared to $1.8 million for the fourth quarter of 2015. The disparity between the $367 thousand, or 20.7%, decrease in Provision from the fourth quarter of 2015 to the first quarter of 2016, relative to the $1.4 million, or 77.3%, decrease in net charge-offs between the periods was primarily driven by the loan growth between the dates.

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

  • Net income for the three months ended March 31, 2016 was $8.3 million, as compared to $7.5 million for the same period in 2015. Significantly contributing to the increase was a $1.1 million increase in net interest income and a $2.5 million reduction in due diligence, merger-related and merger integration costs, partially offset by an $841 thousand increase in the Provision, an $825 thousand decrease in gain on sale of available for sale investment securities and an $868 thousand increase in salaries and wages.
  • Net interest income for the three months ended March 31, 2016 was $25.9 million, an increase of $1.1 million, or 4.5%, from $24.8 million for the same period in 2015. The increase in net interest income between the periods was largely related to loan growth between the periods. Average loans and leases for the three months ended March 31, 2016 increased by $225.7 million from the same period in 2015. The increase in average balances was offset by a 24 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 $1.5 million increase in interest income on loans. On the liability side, a $26.7 million decrease in average interest-bearing deposits was offset by a $29.5 million increase in average subordinated notes, related to the issuance, during the third quarter of 2015, of $30 million of 4.5% fixed-to-floating rate subordinated notes. The interest expense effect of the decrease in interest-bearing deposits, which saw a rate decrease of 1 basis point, combined with the increase in average subordinated notes, which paid interest at 4.99%, was a net increase in interest expense of $408 thousand.
  • The tax-equivalent net interest margin of 3.87% for the three months ended March 31, 2016 was an 8 basis point increase from 3.79% for the same period in 2015. The increase was largely the result of the $167.6 million reduction in low-yielding interest-bearing deposits with banks and the $225.7 million increase in average loans and leases. The tax-equivalent yield earned on loans and leases for the three months ended March 31, 2016 was 4.67%. Partially offsetting the effect of the loan growth on the tax-equivalent interest margin was the $29.5 million increase in average subordinated notes at a rate of 4.99% for the first quarter of 2016 as compared to the same period in 2015. The contribution of fair value mark accretion to the tax equivalent net interest margin accounted for 16 basis points of the margin for the first quarter of 2016 as compared to 22 basis points for the first quarter of 2015.
  • Non-interest income for the three months ended March 31, 2016 decreased $1.6 million as compared to the same period in 2015. Largely contributing to this decrease was an $825 thousand decrease in net gain on sale of available for sale investment securities, a $401 thousand decrease in dividends on FHLB and FRB stocks and a $273 thousand decrease in fees for wealth management services. During the three months ended March 31, 2016, $80 thousand of available for sale investment securities, related to a rabbi trust, were sold, resulting in a net loss of $15 thousand as compared to the $63.2 million of available for sale investment securities sold during the first quarter of 2015, much of which had been acquired from Continental Bank, and which resulted in a net gain on sale of $810 thousand. The decrease in dividends on FHLB and FRB stocks was related to the $448 thousand special dividend issued by the FHLB in the first quarter of 2015 which was not repeated in 2016. The decrease in wealth revenue largely related to the shifting of the composition of the wealth portfolio to lower-yielding, fixed-fee accounts. Although assets under management administration, supervision and brokerage increased by $1.47 billion from March 31, 2015 to March 31, 2016, the portion of the portfolio which derives its fees from market value changes declined, offset by increases in the lower-yielding fixed-fee accounts. This shift serves to reduce the earnings volatility associated with market movement.
  • Non-interest expense for the three months ended March 31, 2016 decreased $2.4 million, to $25.0 million, as compared to $27.4 million for the same period in 2015. Largely accounting for the decrease was a $2.5 million decrease in due diligence, merger-related and merger integration costs, a $273 thousand decrease in advertising expense and a $244 thousand decrease in employee benefits. The merger expense and higher advertising expense during the first quarter of 2015 were related to the January 1, 2015 Continental Bank acquisition. The decrease in employee benefits was related to the December 2015 settlement of the corporate pension plan, not only due to the elimination of the recurring pension costs associated with a defined benefits plan, but also due to the excess assets remaining in the plan at settlement. For the three months ended March 31, 2016, excess assets from the settled pension plan were used to reduce 401(k) contribution costs by $300 thousand. Partially offsetting these decreases were increases of $868 thousand in salaries related to staff additions, which included the April 2015 Robert J. McAllister Agency acquisition, the October 2015 formation of the Key Capital Mortgage, Inc. subsidiary, and additions to our lending teams in our residential mortgage operation and our Hershey office, as well as the addition of a number of key senior management positions which had become vacant since the first quarter of 2015.
  • Nonperforming loans and leases totaled $9.6 million as of March 31, 2016, representing 0.41% of total portfolio loans and leases, as compared to $9.1 million, or 0.44% of total portfolio loans and leases as of March 31, 2015. For the three months ended March 31, 2016, the Corporation recorded net loan and lease charge-offs of $422 thousand, as compared to $859 thousand for the same period in 2015. The decrease of net charge-offs between periods was the result of impairment analyses on collateral-dependent loans which identified collateral shortfalls and determined appropriate charge-offs. Based on the analyses performed as of March 31, 2016, and the full or partial charge-offs recorded, management believes there is sufficient collateral to cover the principal balances of the collateral-dependent loans. The Provision for the three months ended March 31, 2016 was $1.4 million as compared to $569 thousand for the same period in 2015. The increase in the Provision for the first quarter of 2016 was largely driven by the increases in loan volume which were concentrated in the commercial mortgage and construction segments of the portfolio.

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

  • Total portfolio loans and leases of $2.38 billion as of March 31, 2016 increased by $109.9 million from December 31, 2015. Loan growth was concentrated in the commercial mortgage and construction categories, which increased $80.2 million and $28.8 million, respectively, during the first quarter of 2016.
  • The allowance for loan and lease losses (the “Allowance”) as of March 31, 2016 was $16.8 million, or 0.71% of portfolio loans as compared to $15.9 million, or 0.70% of portfolio loans and leases, as of December 31, 2015. In addition to the ratio of Allowance to portfolio loans, management considers two non-GAAP measures: the Allowance as a percentage of originated loans and leases, which was 0.83% as of March 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 1.37% as of March 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 March 31, 2016 were $365.8 million, an increase of $16.9 million from December 31, 2015. Increases of $23.7 million in mortgage-related securities were partially offset by decreases of $5.4 million in U.S. government securities.
  • Total assets as of March 31, 2016 were $3.06 billion, an increase of $27.3 million from December 31, 2015. Increases in loans and leases and available for sale investment securities were partially offset by reductions in interest-bearing deposits with banks, which decreased by $90.7 million.
  • Wealth assets under management, administration, supervision and brokerage totaled $9.28 billion as of March 31, 2016, an increase of $916.9 million from December 31, 2015. However, due to the change in the composition of the assets held in the wealth portfolio, fees for wealth management services did not grow proportionately, as more of the portfolio was comprised of assets held in lower-yielding fixed-fee accounts.
  • Deposits of $2.34 billion as of March 31, 2016 increased $91.3 million from December 31, 2015. A significant portion of the growth in deposits was in the wholesale sector, which grew by $72.7 million.
  • The capital ratios for the Bank and the Corporation, as of March 31, 2016, as shown in the attached tables, indicate levels well above the regulatory minimum to be considered “well capitalized.” The capital ratios of the Bank increased from the fourth quarter of 2015 primarily as a result of a $15.0 million downstream of capital from the Corporation during the first quarter. The capital ratios of the Corporation decreased from the fourth quarter of 2015, as shareholders’ equity decreased $534 thousand, while total assets increased by $27.3 million. The decrease in shareholders’ equity occurred as a result of dividend payments and the repurchase, during the first quarter of 2016, of $8.0 million of treasury shares.

EARNINGS CONFERENCE CALL
The Corporation will hold an earnings conference call at 8:30 a.m. Eastern Time on Friday, April 29, 2016. Interested parties may participate by dialing (toll-free) 1-877-504-8812 (international (toll) 1-412-902-6656). A recorded replay of the conference call will be available one hour after the conclusion of the call and will remain available through May 13, 2016. The recorded replay may be accessed by dialing (toll-free) 1-877-344-7529 (international (toll) 1-412-317-0088).The conference number is 10083628.

The conference call will be simultaneously broadcast live over the Internet through a webcast on the investor relations portion of the Bryn Mawr Bank Corporation website. To access the call, please visit the website at http://services.choruscall.com/links/bmtc160429. An online archive of the webcast will be available within one hour of the conclusion of the call. The Corporation has also recently expanded its Investor Relations website to include added resources and information for shareholders and interested investors. Interested parties are encouraged to utilize the expanded resources of the site for more information on Bryn Mawr Bank Corporation.

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
March 31, 2016 December 31, 2015 September 30, 2015 June 30, 2015 March 31, 2015
Consolidated Balance Sheet (selected items)
Interest-bearing deposits with banks$ 33,954 $ 124,615 $ 100,980 $ 156,282 $ 244,248
Investment securities (available for sale and trading) 369,461 352,916 344,872 353,525 338,781
Loans held for sale 7,807 8,987 8,721 15,363 6,656
Portfolio loans and leases 2,378,841 2,268,988 2,228,764 2,153,263 2,088,531
Allowance for loan and lease losses ("ALLL") (16,845) (15,857) (15,935) (14,959) (14,296)
Goodwill and other intangible assets 127,777 128,668 129,694 130,631 128,141
Total assets 3,058,247 3,030,997 2,952,742 2,950,014 2,943,179
Deposits - interest-bearing 1,700,550 1,626,041 1,634,237 1,624,257 1,658,869
Deposits - non-interest-bearing 643,492 626,684 605,607 636,390 582,495
Short-term borrowings 37,010 94,167 24,264 26,406 38,372
Long-term FHLB advances and other borrowings 249,832 254,863 254,893 244,923 250,088
Subordinated notes 29,491 29,479 29,466 - -
Total liabilities 2,693,070 2,665,286 2,584,587 2,568,916 2,565,276
Shareholders' equity 365,177 365,711 368,155 381,098 377,903
Average Balance Sheet (selected items)
Interest-bearing deposits with banks$ 39,050 $ 90,832 $ 165,723 $ 182,099 $ 206,694
Investment securities (available for sale and trading) 360,957 354,239 356,028 351,080 374,190
Loans held for sale 5,481 7,531 10,527 6,735 3,470
Portfolio loans and leases 2,303,103 2,240,189 2,181,125 2,111,371 2,079,412
Total interest-earning assets 2,708,591 2,692,791 2,713,403 2,651,285 2,663,766
Goodwill and intangible assets 128,296 129,292 130,241 129,116 125,060
Total assets 2,973,148 2,959,011 2,981,308 2,910,701 2,918,156
Deposits - interest-bearing 1,633,651 1,611,574 1,644,976 1,628,759 1,660,330
Short-term borrowings 34,158 26,092 28,166 34,980 55,207
Long-term FHLB advances and other borrowings 250,015 254,880 248,606 249,678 266,342
Subordinated notes 29,482 29,471 18,190 - -
Total interest-bearing liabilities 1,947,306 1,922,017 1,939,938 1,913,417 1,981,879
Total liabilities 2,612,276 2,593,651 2,604,704 2,531,547 2,547,217
Shareholders' equity 360,872 365,360 376,604 379,154 370,939
Income Statement
Net interest income$ 25,902 $ 25,429 $ 24,833 $ 25,070 $ 24,795
Provision for loan and lease losses 1,410 1,777 1,200 850 569
Noninterest income 13,208 13,668 13,350 14,177 14,765
Noninterest expense 25,051 46,951 25,403 25,982 27,429
Income tax expense (benefit) 4,375 (3,276) 4,084 4,296 4,068
Net income (loss) 8,274 (6,355) 7,496 8,119 7,494
Basic earnings per share 0.49 (0.37) 0.43 0.46 0.43
Diluted earnings per share 0.49 (0.37) 0.42 0.45 0.42
Net income (core) (1) 8,284 7,506 8,241 8,958 8,932
Basic earnings per share (core) (1) 0.49 0.44 0.47 0.51 0.51
Diluted earnings per share (core) (1) 0.49 0.44 0.46 0.50 0.50
Cash dividends paid per share 0.20 0.20 0.20 0.19 0.19
Profitability Indicators
Return on average assets 1.12% -0.86% 1.01% 1.12% 1.03%
Return on average equity 9.22% -7.00% 8.01% 8.61% 8.13%
Return on tangible equity(1) 15.31% -9.36% 13.25% 14.06% 13.30%
Tax-equivalent net interest margin 3.87% 3.77% 3.65% 3.81% 3.79%
Efficiency ratio(1) 61.75% 63.09% 60.97% 60.48% 60.45%
Mortgage Banking Information
Mortgage loans originated$ 50,416 $ 55,867 $ 76,169 $ 63,285 $ 35,728
Residential mortgage loans sold - servicing retained 25,965 24,063 30,515 28,204 24,569
Residential mortgage loans sold - servicing released 2,397 7,150 10,579 9,257 2,644
Total residential mortgage loans sold$ 28,362 $ 31,213 $ 41,094 $ 37,461 $ 27,213
Residential mortgage loans serviced for others$ 605,366 $ 601,939 $ 601,999 $ 595,440 $ 591,989
Share Data
Closing share price$ 25.73 $ 28.72 $ 31.07 $ 30.16 $ 30.41
Book value per common share$ 21.48 $ 21.40 $ 21.94 $ 21.32 $ 20.87
Tangible book value per common share$ 13.87 $ 13.86 $ 14.38 $ 13.97 $ 13.66
Price / book value 119.80% 134.19% 141.62% 141.48% 145.74%
Price / tangible book value 185.47% 207.14% 216.01% 215.85% 222.66%
Weighted average diluted shares outstanding 16,883,193 17,129,234 17,834,298 18,054,663 17,903,258
Shares outstanding, end of period 16,801,801 17,071,523 17,166,323 17,786,293 17,777,628
Wealth Management Information:
Wealth assets under mgmt, administration, supervision and brokerage (2)$ 9,281,743 $ 8,364,805 $ 8,218,276 $ 8,536,024 $ 7,816,441
Fees for wealth management services$ 8,832 $ 8,995 $ 9,194 $ 9,600 $ 9,105
Capital Ratios
Bryn Mawr Trust Company
Tier I capital to risk weighted assets ("RWA") 10.69% 10.12% 11.96% 12.04% 12.12%
Total (Tier II) capital to RWA 11.39% 10.78% 12.64% 12.71% 12.78%
Tier I leverage ratio 9.15% 8.51% 9.75% 9.77% 9.52%
Tangible equity ratio (1) 8.53% 7.74% 8.84% 8.54% 8.42%
Common equity Tier I capital to RWA 10.69% 10.12% 11.96% 12.04% 12.12%
Bryn Mawr Bank Corporation
Tier I capital to RWA 10.22% 10.72% 11.56% 12.55% 12.79%
Total (Tier II) capital to RWA 12.13% 12.61% 13.50% 13.21% 13.44%
Tier I leverage ratio 8.76% 9.02% 9.44% 10.20% 10.05%
Tangible equity ratio (1) 8.10% 8.17% 8.45% 8.88% 8.87%
Common equity Tier I capital to RWA 10.22% 10.72% 11.54% 12.50% 12.77%
Asset Quality Indicators
Net loan and lease charge-offs ("NCO"s)$ 422 $ 1,855 $ 224 $ 187 $ 859
Nonperforming loans and leases ("NPL"s)$ 9,636 $ 10,244 $ 12,315 $ 8,996 $ 9,130
Other real estate owned ("OREO") 756 2,638 1,010 843 1,532
Total nonperforming assets ("NPA"s)$ 10,392 $ 12,882 $ 13,325 $ 9,839 $ 10,662
Nonperforming loans and leases 30 or more days past due$ 6,193 $ 5,678 $ 8,854 $ 7,302 $ 7,426
Performing loans and leases 30 to 89 days past due 6,296 5,601 4,960 5,233 3,361
Performing loans and leases 90 or more days past due - - - - -
Total delinquent loans and leases$ 12,489 $ 11,279 $ 13,814 $ 12,535 $ 10,787
Delinquent loans and leases to total loans and leases 0.52% 0.50% 0.62% 0.58% 0.51%
Delinquent performing loans and leases to total loans and leases 0.26% 0.25% 0.22% 0.24% 0.16%
NCOs / average loans and leases (annualized) 0.07% 0.33% 0.04% 0.04% 0.17%
NPLs / total portfolio loans and leases 0.41% 0.45% 0.55% 0.42% 0.44%
NPAs / total loans and leases and OREO 0.44% 0.56% 0.60% 0.45% 0.51%
ALLL / NPLs 174.81% 154.79% 129.40% 166.29% 156.58%
ALLL / portfolio loans 0.71% 0.70% 0.71% 0.69% 0.68%
ALLL on originated loans and leases / Originated loans and leases (1) 0.83% 0.84% 0.88% 0.88% 0.90%
(Total Allowance + Loan mark) / Total Gross portfolio loans and leases (1) 1.37% 1.44% 1.52% 1.60% 1.61%
Troubled debt restructurings ("TDR"s) included in NPLs$ 1,756 $ 1,935 $ 3,711 $ 3,960 $ 4,217
TDRs in compliance with modified terms 4,893 4,880 4,062 4,078 4,145
Total TDRs$ 6,649 $ 6,815 $ 7,773 $ 8,038 $ 8,362
(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)
As of or For the Three Months Ended
March 31, 2016 December 31, 2015 September 30, 2015 June 30, 2015 March 31, 2015
Assets
Cash and due from banks$ 15,594 $ 18,452 $ 17,161 $ 20,258 $ 17,269
Interest-bearing deposits with banks 33,954 124,615 100,980 156,282 244,248
Cash and cash equivalents 49,548 143,067 118,141 176,540 261,517
Investment securities, available for sale 365,819 348,966 341,421 349,496 334,746
Investment securities, trading 3,642 3,950 3,451 4,029 4,035
Loans held for sale 7,807 8,987 8,721 15,363 6,656
Portfolio loans and leases, originated 2,015,683 1,883,869 1,804,834 1,692,027 1,571,375
Portfolio loans and leases, acquired 363,158 385,119 423,930 461,236 517,156
Total portfolio loans and leases 2,378,841 2,268,988 2,228,764 2,153,263 2,088,531
Less: Allowance for losses on originated loan and leases (16,817) (15,857) (15,900) (14,937) (14,173)
Less: Allowance for losses on acquired loan and leases (28) - (35) (22) (123)
Total allowance for loan and lease losses (16,845) (15,857) (15,935) (14,959) (14,296)
Net portfolio loans and leases 2,361,996 2,253,131 2,212,829 2,138,304 2,074,235
Premises and equipment 44,712 45,339 44,370 43,164 42,888
Accrued interest receivable 8,205 7,869 7,744 7,518 7,465
Deferred income taxes 10,155 11,137 11,216 11,066 12,057
Mortgage servicing rights 5,182 5,142 5,031 4,970 4,815
Bank owned life insurance 38,616 38,371 38,157 32,941 32,772
Federal Home Loan Bank ("FHLB") stock 12,142 12,942 11,742 11,542 11,541
Goodwill 104,765 104,765 104,338 104,322 101,619
Intangible assets 23,012 23,903 25,356 26,309 26,522
Other investments 8,487 9,460 9,499 9,295 9,238
Other assets 14,159 13,968 10,726 15,155 13,073
Total assets$ 3,058,247 $ 3,030,997 $ 2,952,742 $ 2,950,014 $ 2,943,179
Liabilities
Deposits
Noninterest-bearing$ 643,492 $ 626,684 $ 605,607 $ 636,390 $ 582,495
Interest-bearing 1,700,550 1,626,041 1,634,237 1,624,257 1,658,869
Total deposits 2,344,042 2,252,725 2,239,844 2,260,647 2,241,364
Short-term borrowings 37,010 94,167 24,264 26,406 38,372
Long-term FHLB advances and other borrowings 249,832 254,863 254,893 244,923 250,088
Subordinated notes 29,491 29,479 29,466 - -
Accrued interest payable 1,294 1,851 1,444 1,292 1,201
Other liabilities 31,401 32,201 34,676 35,648 34,251
Total liabilities 2,693,070 2,665,286 2,584,587 2,568,916 2,565,276
Shareholders' equity
Common stock 20,949 20,931 20,854 20,848 20,750
Paid-in capital in excess of par value 229,479 228,814 226,980 225,837 223,389
Less: common stock held in treasury, at cost (66,140) (58,144) (53,000) (34,346) (31,646)
Accumulated other comprehensive income (loss), net of tax 1,502 (412) (11,040) (11,634) (10,287)
Retained earnings 179,387 174,522 184,361 180,393 175,697
Total shareholders equity 365,177 365,711 368,155 381,098 377,903
Total liabilities and shareholders' equity$ 3,058,247 $ 3,030,997 $ 2,952,742 $ 2,950,014 $ 2,943,179

Bryn Mawr Bank Corporation
Supplemental Balance Sheet Information (unaudited)
(dollars in thousands)
Portfolio Loans and Leases as of
March 31, 2016 December 31, 2015 September 30, 2015 June 30, 2015 March 31, 2015
Commercial mortgages$ 1,044,415 $ 964,259 $ 971,983 $ 924,161 $ 892,675
Home equity loans and lines 205,896 209,473 212,258 211,982 209,037
Residential mortgages 412,006 406,404 399,730 381,323 379,363
Construction 119,193 90,421 82,820 88,122 81,408
Total real estate loans 1,781,510 1,670,557 1,666,791 1,605,588 1,562,483
Commercial & Industrial 523,053 524,515 488,977 472,702 457,432
Consumer 21,427 22,129 22,350 25,123 20,204
Leases 52,851 51,787 50,646 49,850 48,412
Total non-real estate loans and leases 597,331 598,431 561,973 547,675 526,048
Total portfolio loans and leases$ 2,378,841 $ 2,268,988 $ 2,228,764 $ 2,153,263 $ 2,088,531
Nonperforming Loans and Leases as of
March 31, 2016 December 31, 2015 September 30, 2015 June 30, 2015 March 31, 2015
Commercial mortgages$ 872 $ 829 $ 931 $ 592 $ 600
Home equity loans and lines 1,953 2,027 1,661 1,605 923
Residential mortgages 2,923 3,212 5,249 5,320 5,130
Construction 12 34 34 139 201
Total nonperforming real estate loans 5,760 6,102 7,875 7,656 6,854
Commercial & Industrial 3,822 4,133 4,337 1,283 2,218
Consumer - - 2 - 9
Leases 54 9 101 57 49
Total nonperforming non-real estate loans and leases 3,876 4,142 4,440 1,340 2,276
Total noperforming portfolio loans and leases$ 9,636 $ 10,244 $ 12,315 $ 8,996 $ 9,130
Net Loan and Lease Charge-Offs (Recoveries) for the Three Months Ended
March 31, 2016 December 31, 2015 September 30, 2015 June 30, 2015 March 31, 2015
Commercial mortgage$ 107 $ (4) $ - $ 48 $ (21)
Home equity loans and lines 71 561 (21) 11 125
Residential (35) 239 11 43 463
Construction - (1) (1) (1) (1)
Total net charge-offs (recoveries) of real estate loans 143 795 (11) 101 566
Commercial & Industrial 25 902 38 (10) 255
Consumer 20 55 26 35 32
Leases 234 103 171 61 6
Total net charge-offs of non-real estate loans and leases 279 1,060 235 86 293
Total net charge-offs$ 422 $ 1,855 $ 224 $ 187 $ 859

Bryn Mawr Bank Corporation
Supplemental Balance Sheet Information (unaudited)
(dollars in thousands)
Investment Securities Available for Sale, at Fair Value
March 31, 2016 December 31, 2015 September 30, 2015 June 30, 2015 March 31, 2015
U.S. Treasury securities $ 102 $ 101 $ 102 $ 101 $ 102
Obligations of the U.S. Government and agencies 96,080 101,495 91,639 93,125 89,669
State & political subdivisions - tax-free 39,502 41,442 43,388 40,967 32,261
State & political subdivisions - taxable 1,093 524 742 351 -
Mortgage-backed securities 183,127 158,689 155,509 161,283 162,370
Collateralized mortgage obligations 29,106 29,799 32,953 36,094 32,759
Other debt securities 1,700 1,691 1,896 1,894 1,900
Bond mutual funds 11,725 11,810 11,798 11,920 11,883
Other investments 3,384 3,415 3,394 3,761 3,802
Total$ 365,819 $ 348,966 $ 341,421 $ 349,496 $ 334,746
Unrealized Gain (Loss) on Investment Securities Available for Sale
March 31, 2016 December 31, 2015 September 30, 2015 June 30, 2015 March 31, 2015
U.S. Treasury securities $ 1 $ - $ 1 $ - $ -
Obligations of the U.S. Government and agencies 984 153 712 182 591
State & political subdivisions - tax-free 173 75 153 49 133
State & political subdivisions - taxable 18 (1) 2 1 -
Mortgage-backed securities 3,026 1,267 2,591 1,542 2,898
Collateralized mortgage obligations 330 43 339 223 347
Other debt securities - (9) (4) (6) -
Bond mutual funds (231) (146) (158) (36) (73)
Other investments (155) (192) (193) 111 128
Total$ 4,146 $ 1,190 $ 3,443 $ 2,066 $ 4,024
Deposits
March 31, 2016 December 31, 2015 September 30, 2015 June 30, 2015 March 31, 2015
Interest-bearing deposits:
Interest-bearing checking$ 335,240 $ 338,861 $ 330,683 $ 328,606 $ 349,582
Money market 773,637 749,726 748,983 699,264 717,441
Savings 190,477 187,299 192,995 189,120 184,819
Wholesale non-maturity deposits 62,454 67,717 65,636 65,365 69,555
Wholesale time deposits 131,145 53,185 57,671 67,894 73,476
Retail time deposits 207,597 229,253 238,269 274,008 263,996
Total interest-bearing deposits 1,700,550 1,626,041 1,634,237 1,624,257 1,658,869
Noninterest-bearing deposits 643,492 626,684 605,607 636,390 582,495
Total deposits$ 2,344,042 $ 2,252,725 $ 2,239,844 $ 2,260,647 $ 2,241,364

Bryn Mawr Bank Corporation
Detailed Income Statements (unaudited)
(dollars in thousands, except per share data)
As of or For the Three Months Ended
March 31, 2016 December 31, 2015 September 30, 2015 June 30, 2015 March 31, 2015
Interest income:
Interest and fees on loans and leases$ 26,696 $ 26,080 $ 25,620 $ 25,568 $ 25,164
Interest on cash and cash equivalents 46 63 107 124 115
Interest on investment securities: 1,527 1,623 1,302 1,301 1,475
Total interest income 28,269 27,766 27,029 26,993 26,754
Interest expense:
Interest on deposits 1,076 1,046 1,076 1,062 1,028
Interest on short-term borrowings 17 9 8 10 21
Interest on FHLB advances and other borrowings 908 912 881 851 910
Interest on subordinated notes 366 370 231 - -
Total interest expense 2,367 2,337 2,196 1,923 1,959
Net interest income 25,902 25,429 24,833 25,070 24,795
Provision for loan and lease losses (the "Provision") 1,410 1,777 1,200 850 569
Net interest income after Provision 24,492 23,652 23,633 24,220 24,226
Noninterest income:
Fees for wealth management services 8,832 8,995 9,194 9,600 9,105
Insurance revenue 1,276 842 1,065 817 1,021
Service charges on deposits 702 742 721 752 712
Loan servicing and other fees 492 502 397 597 591
Net gain on sale of loans 760 751 685 778 808
Net (loss) gain on sale of investment securities available for sale (15) 58 60 3 810
Net (loss) gain on sale of other real estate owned (76) 33 - 75 15
Dividends on FHLB and FRB stocks 214 330 138 299 615
Other operating income 1,023 1,415 1,090 1,256 1,088
Total noninterest income 13,208 13,668 13,350 14,177 14,765
Noninterest expense:
Salaries and wages 11,738 11,700 10,941 11,064 10,870
Employee benefits 2,485 2,268 2,590 2,618 2,729
Loss on pension termination - 17,377 - - -
Occupancy and bank premises 2,488 2,474 2,557 2,808 2,466
Branch lease termination expense - 929 - - -
Furniture, fixtures and equipment 1,919 2,129 1,712 1,488 1,512
Advertising 284 656 410 479 557
Amortization of intangible assets 891 937 953 955 982
Impairment of intangible assets - 387 - - -
Due diligence, merger-related and merger integration expenses - 1,860 1,015 1,294 2,501
Professional fees 813 1,010 843 827 673
Pennsylvania bank shares tax 638 (46) 433 433 433
Information technology 1,048 874 1,053 814 702
Other operating expenses 2,747 4,396 2,896 3,202 4,004
Total noninterest expense 25,051 46,951 25,403 25,982 27,429
Income (loss) before income taxes 12,649 (9,631) 11,580 12,415 11,562
Income tax expense (benefit) 4,375 (3,276) 4,084 4,296 4,068
Net income (loss)$ 8,274 $ (6,355) $ 7,496 $ 8,119 $ 7,494
Per share data:
Weighted average shares outstanding 16,848,202 17,129,234 17,572,421 17,713,794 17,545,802
Dilutive common shares 34,991 - 261,877 340,869 357,456
Adjusted weighted average diluted shares 16,883,193 17,129,234 17,834,298 18,054,663 17,903,258
Basic earnings (loss) per common share$ 0.49 $ (0.37) $ 0.43 $ 0.46 $ 0.43
Diluted earnings (loss) per common share$ 0.49 $ (0.37) $ 0.42 $ 0.45 $ 0.42
Dividend declared per share$ 0.20 $ 0.20 $ 0.20 $ 0.19 $ 0.19
Effective tax rate 34.59% 34.02% 35.27% 34.60% 35.18%

Bryn Mawr Bank Corporation
Tax-Equivalent Net Interest Margin (unaudited)
(dollars in thousands, except per share data)
For The Three Months Ended
March 31, 2016December 31, 2015September 30, 2015June 30, 2015March 31, 2015
(dollars in thousands) Average BalanceInterest Income/ ExpenseAverage Rates Earned/ PaidAverage BalanceInterest Income/ ExpenseAverage Rates Earned/ PaidAverage BalanceInterest Income/ ExpenseAverage Rates Earned/ PaidAverage BalanceInterest Income/ ExpenseAverage Rates Earned/ PaidAverage BalanceInterest Income/ ExpenseAverage Rates Earned/ Paid
Assets:
Interest-bearing deposits with other banks $ 39,050 $ 46 0.47%$ 90,832 $ 63 0.28%$ 165,723 $ 107 0.26%$ 182,099 $ 124 0.27%$ 206,694 $ 115 0.23%
Investment securities - available for sale:
Taxable 316,353 1,397 1.78% 307,524 1,432 1.85% 310,582 1,172 1.50% 310,011 1,184 1.53% 335,208 1,336 1.62%
Tax-exempt 40,658 191 1.89% 43,144 195 1.79% 41,424 186 1.78% 37,035 157 1.70% 35,085 203 2.35%
Total investment securities - available for sale 357,011 1,588 1.79% 350,668 1,627 1.84% 352,006 1,358 1.53% 347,046 1,341 1.55% 370,293 1,539 1.69%
Investment securities - trading 3,946 2 0.20% 3,571 60 6.67% 4,022 5 0.49% 4,034 11 1.09% 3,897 4 0.42%
Loans and leases * 2,308,584 26,778 4.67% 2,247,720 26,158 4.62% 2,191,652 25,698 4.65% 2,118,106 25,623 4.85% 2,082,882 25,226 4.91%
Total interest-earning assets 2,708,591 28,414 4.22% 2,692,791 27,908 4.11% 2,713,403 27,168 3.97% 2,651,285 27,099 4.10% 2,663,766 26,884 4.09%
Cash and due from banks 16,501 18,005 17,160 16,222 19,092
Less: allowance for loan and lease losses (16,239) (16,106) (15,066) (14,346) (14,866)
Other assets 264,295 264,321 265,811 257,540 250,164
Total assets $ 2,973,148 $ 2,959,011 $ 2,981,308 $ 2,910,701 $ 2,918,156
Liabilities:
Interest-bearing deposits:
Savings, NOW and market rate deposits $ 1,279,630 $ 569 0.18%$ 1,260,575 $ 565 0.18%$ 1,260,529 $ 584 0.18%$ 1,224,544 $ 575 0.19%$ 1,252,410 $ 594 0.19%
Wholesale deposits 137,201 233 0.68% 119,394 186 0.62% 133,277 203 0.60% 130,497 195 0.60% 140,120 188 0.54%
Retail time deposits 216,820 274 0.51% 231,605 295 0.51% 251,170 289 0.46% 273,718 292 0.43% 267,800 246 0.37%
Total interest-bearing deposits 1,633,651 1,076 0.26% 1,611,574 1,046 0.26% 1,644,976 1,076 0.26% 1,628,759 1,062 0.26% 1,660,330 1,028 0.25%
Borrowings:
Short-term borrowings 34,158 17 0.20% 26,092 9 0.14% 28,166 8 0.11% 34,980 10 0.11% 55,344 21 0.15%
Long-term FHLB advances and other borrowings 250,015 908 1.46% 254,880 912 1.42% 248,606 881 1.41% 249,678 851 1.37% 266,205 910 1.39%
Subordinated notes 29,482 366 4.99% 29,471 370 4.98% 18,190 231 5.04% - - 0.00% - - 0.00%
Total borrowings 313,655 1,291 1.66% 310,443 1,291 1.65% 294,962 1,120 1.51% 284,658 861 1.21% 321,549 931 1.17%
Total interest-bearing liabilities 1,947,306 2,367 0.49% 1,922,017 2,337 0.48% 1,939,938 2,196 0.45% 1,913,417 1,923 0.40% 1,981,879 1,959 0.40%
Noninterest-bearing deposits 631,047 634,969 625,547 580,240 534,403
Other liabilities 33,923 36,665 39,219 37,890 30,935
Total noninterest-bearing liabilities 664,970 671,634 664,766 618,130 565,338
Total liabilities 2,612,276 2,593,651 2,604,704 2,531,547 2,547,217
Shareholders' equity 360,872 365,360 376,604 379,154 370,939
Total liabilities and shareholders' equity $ 2,973,148 $ 2,959,011 $ 2,981,308 $ 2,910,701 $ 2,918,156
Interest income to earning assets 4.22% 4.11% 3.97% 4.10% 4.09%
Net interest spread 3.73% 3.63% 3.52% 3.70% 3.69%
Effect of noninterest-bearing sources 0.14% 0.14% 0.13% 0.11% 0.10%
Tax-equivalent net interest margin $ 26,047 3.87% $ 25,571 3.77% $ 24,972 3.65% $ 25,176 3.81% $ 24,925 3.79%
Tax-equivalent adjustment $ 145 0.02% $ 142 0.02% $ 139 0.02% $ 106 0.02% $ 130 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
Loans and leases $ 953 0.17% $ 707 0.12% $ 763 0.14% $ 1,246 0.24% $ 1,127 0.22%
Retail time deposits (110) -0.20% (123) -0.21% (188) -0.30% (205) -0.30% (245) -0.37%
Short-term borrowings (12) -0.14% (35) -0.53% (35) -0.49% (35) -0.40% (35) -0.26%
Long-term FHLB advances and other borrowings (30) -0.05% (30) -0.05% (30) -0.05% (30) -0.05% (35) -0.05%
Net interest income from fair value marks $ 1,105 $ 895 $ 1,016 $ 1,516 $ 1,442
Purchase accounting effect on tax-equivalent margin 0.16% 0.13% 0.15% 0.23% 0.22%
* 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
March 31, 2016 December 31, 2015 September 30, 2015 June 30, 2015 March 31, 2015
Reconciliation of Net Income to Net Income (core):
Net income (loss) (a GAAP measure)$ 8,274 $ (6,355) $ 7,496 $ 8,119 $ 7,494
Less: Tax-effected non-core noninterest income:
Loss (gain) on sale of investment securities available for sale 10 (38) (39) (2) (527)
Add: Tax-effected non-core noninterest expense items:
Loss on pension termination - 11,295 - - -
Severance expense (Salaries and wages) - 142 124 - -
Branch lease termination expense - 604 - - -
Debt and swap prepayment penalty (Other operating expenses) - 397 - - 339
Impairment of intangible assets - 252 - - -
Due diligence, merger-related and merger integration expenses - 1,209 660 841 1,626
Net income (core) (a non-GAAP measure)$ 8,284 $ 7,506 $ 8,241 $ 8,958 $ 8,932
Calculation of Basic and Diluted Earnings per Common Share (core):
Weighted average common shares outstanding 16,848,202 17,129,234 17,572,421 17,713,794 17,545,802
Dilutive common shares 63,617 112,783 261,877 340,869 357,456
Adjusted weighted average diluted shares 16,911,819 17,242,017 17,834,298 18,054,663 17,903,258
Basic earnings per common share (core) (a non-GAAP measure)$ 0.49 $ 0.44 $ 0.47 $ 0.51 $ 0.51
Diluted earnings per common share (core) (a non-GAAP measure)$ 0.49 $ 0.44 $ 0.46 $ 0.50 $ 0.50
Calculation of Return on Average Tangible Equity:
Net income (loss)$ 8,274 $ (6,355) $ 7,496 $ 8,119 $ 7,494
Add: Tax-effected amortization and impairment of intangible assets 579 861 619 621 638
Net tangible income (numerator)$ 8,853 $ (5,494) $ 8,115 $ 8,740 $ 8,132
Average shareholders' equity$ 360,872 $ 365,360 $ 376,604 $ 379,154 $ 370,939
Less: Average goodwill and intangible assets (128,296) (129,292) (130,241) (129,116) (125,060)
Net average tangible equity (denominator)$ 232,576 $ 236,068 $ 246,363 $ 250,038 $ 245,879
Return on tangible equity (a non-GAAP measure) 15.31% -9.23% 13.07% 14.02% 13.41%
Calculation of Tangible Equity Ratio:
Total shareholders' equity$ 365,177 $ 365,711 $ 368,155 $ 381,098 $ 377,903
Less: Goodwill and intangible assets (127,777) (128,668) (129,694) (130,631) (128,141)
Net tangible equity (numerator)$ 237,400 $ 237,043 $ 238,461 $ 250,467 $ 249,762
Total assets$ 3,058,247 $ 3,030,997 $ 2,952,742 $ 2,950,014 $ 2,943,179
Less: Goodwill and intangible assets (127,777) (128,668) (129,694) (130,631) (128,141)
Tangible assets (denominator)$ 2,930,470 $ 2,902,329 $ 2,823,048 $ 2,819,383 $ 2,815,038
Tangible equity ratio 8.10% 8.17% 8.45% 8.88% 8.87%
Calculation of Efficiency Ratio:
Noninterest expense$ 25,051 $ 46,951 $ 25,403 $ 25,982 $ 27,429
Less: certain noninterest expense items*:
Loss on pension termination - (17,377) - - -
Severance expense (Salaries and wages) - (218) (191) - -
Branch lease termination expense - (929) - - -
Debt and swap prepayment penalty (Other operating expenses) - (611) - - (522)
Amortization of intangibles (891) (937) (953) (955) (982)
Impairment of intangible assets - (388) - - -
Due diligence, merger-related and merger integration expenses - (1,860) (1,015) (1,294) (2,501)
Noninterest expense (adjusted) (numerator)$ 24,160 $ 24,631 $ 23,244 $ 23,733 $ 23,424
Noninterest income$ 13,208 $ 13,668 $ 13,350 $ 14,177 $ 14,765
Less: non-core noninterest income items:
Loss (gain) on sale of investment securities available for sale 15 (58) (60) (3) (811)
Noninterest income (core)$ 13,223 $ 13,610 $ 13,290 $ 14,174 $ 13,954
Net interest income 25,902 25,429 24,833 25,070 24,795
Noninterest income (core) and net interest income (denominator)$ 39,125 $ 39,039 $ 38,123 $ 39,244 $ 38,749
Efficiency ratio 61.75% 63.09% 60.97% 60.48% 60.45%
* In calculating the Corporation's efficiency ratio, which is used by Management to identify the cost of generating each dollar of core revenue, certain non-core income and expense items as well as the amortization of intangible assets, are excluded.
Supplemental Loan and Allowance Information Used to Calculate Non-GAAP Measures
Total Allowance$ 16,817 $ 15,857 $ 15,935 $ 14,959 $ 14,296
less: Allowance on acquired loans 28 - 35 22 125
Allowance on originated loans and leases$ 16,789 $ 15,857 $ 15,900 $ 14,937 $ 14,171
Total Allowance$ 16,789 $ 15,857 $ 15,935 $ 14,959 $ 14,296
Loan mark on acquired loans 15,930 17,108 18,179 19,816 19,708
Total Allowance + Loan mark$ 32,719 $ 32,965 $ 34,114 $ 34,775 $ 34,004
Total Portfolio loans and leases$ 2,378,841 $ 2,268,988 $ 2,228,764 $ 2,153,263 $ 2,088,532
less: Originated loans and leases 2,015,683 1,883,869 1,804,835 1,692,041 1,571,377
Net acquired loans$ 363,158 $ 385,119 $ 423,929 $ 461,222 $ 517,155
add: Loan mark on acquired loans 15,930 17,108 18,179 19,816 19,708
Gross acquired loans (excludes loan mark)$ 379,088 $ 402,227 $ 442,108 $ 481,038 $ 536,863
Originated loans and leases 2,015,683 1,883,869 1,804,835 1,692,041 1,571,377
Total Gross portfolio loans and leases$ 2,394,771 $ 2,286,096 $ 2,246,943 $ 2,173,079 $ 2,108,240

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

Source:Bryn Mawr Bank Corporation