Bryn Mawr Bank Corporation Reports Third Quarter Net Income of $13.2 Million

BRYN MAWR, Pa., Oct. 22, 2020 (GLOBE NEWSWIRE) -- Bryn Mawr Bank Corporation (NASDAQ: BMTC) (the “Corporation”), parent of The Bryn Mawr Trust Company (the “Bank”), today reported net income of $13.2 million, or $0.66 diluted earnings per share, for the three months ended September 30, 2020, as compared to $15.0 million, or $0.75 diluted earnings per share, for the three months ended June 30, 2020, and $16.4 million, or $0.81 diluted earnings per share, for the three months ended September 30, 2019.

As detailed in the appendix to this earnings release, management calculates core net income, a non-GAAP measure. There were no meaningful non-core income or expense items for the three months ended September 30, 2020 or September 30, 2019. Core net income for the three months ended June 30, 2020, which excludes the gain on sale of Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”) loans, one-time costs associated with the wind-down of BMT Investment Advisers, a wholly-owned subsidiary of the Corporation, and severance associated with certain staff reductions, was $15.4 million, or $0.77 diluted earnings per share. A reconciliation of core net income and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release.

“We continue to manage through these uncertain times and our focus remains on the safety of our employees and supporting our customers as they also manage through this challenging environment,” commented Frank Leto, President and Chief Executive Officer, continuing, “The economic impacts resulting from the COVID-19 pandemic are ongoing. While the current interest rate environment continues to put pressure on our net interest margin, our fee-based businesses produced consistent results, demonstrating the value of our diversified earnings profile. We built on our strong capital position during the quarter while also maintaining ample liquidity, and our credit metrics remained stable. Our solid foundation leaves us well positioned to face the evolving economic landscape as we close out 2020 and look to 2021 and beyond,” Mr. Leto concluded.

On October 22, 2020, the Board of Directors of the Corporation declared a quarterly dividend of $0.27 per share, payable December 1, 2020 to shareholders of record as of November 2, 2020.

SIGNIFICANT ITEMS OF NOTE

Results of Operations – Third Quarter 2020 Compared to Second Quarter 2020

• Net income for the three months ended September 30, 2020 was $13.2 million, or $0.66 diluted earnings per share, as compared to $15.0 million, or $0.75 diluted earnings per share, for the three months ended June 30, 2020. Net interest income for the three months ended September 30, 2020 was $35.0 million, a decrease of $2.4 million over the linked quarter. The provision for credit losses on loans and leases (the “Provision”) for the three months ended September 30, 2020 was $3.6 million, a $661 thousand decrease as compared to $4.3 million for the three months ended June 30, 2020. Total noninterest income increased $533 thousand, total noninterest expense increased $1.0 million, and income tax expense decreased $301 thousand for the three months ended September 30, 2020, as compared to the three months ended June 30, 2020.
  
  
• Net interest income for the three months ended September 30, 2020 was $35.0 million, a decrease of $2.4 million over the linked quarter. Tax-equivalent net interest income for the three months ended September 30, 2020 was $35.1 million, a decrease of $2.4 million over the linked quarter. Tax-equivalent net interest income for the third quarter of 2020 was positively impacted by the accretion of purchase accounting fair value marks of $800 thousand, a decrease of $240 thousand as compared to $1.0 million for the linked quarter. Excluding the effects of these purchase accounting fair value marks, the adjusted tax-equivalent net interest income for the three months ended September 30, 2020 was $34.3 million, a decrease of $2.1 million over the linked quarter. A reconciliation of this and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release.
  
  The tax-equivalent net interest margin was 3.03% for the three months ended September 30, 2020 as compared to 3.22% for the linked quarter. Adjusting for the impact of the accretion of purchase accounting fair value marks, the adjusted tax-equivalent net interest margin was 2.96% for the three months ended September 30, 2020 as compared to 3.13% for the linked quarter. A reconciliation of this and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release.
  
  Items contributing to the decrease in tax-equivalent net interest income adjusted for purchase accounting included decreases of $3.6 million and $216 thousand in tax-equivalent interest and fees earned on loans and leases and tax-equivalent interest income on available for sale investment securities, respectively, partially offset by decreases of $1.5 million and $224 thousand in interest paid on deposits and interest expense on short-term borrowings, respectively, for the three months ended September 30, 2020 as compared to the linked quarter.
  
  Tax-equivalent interest and fees earned on loans and leases for the three months ended September 30, 2020 decreased $3.9 million as compared to the linked quarter. The tax-equivalent yield on average loans and leases for the three months ended September 30, 2020 was 3.97%, a 19 basis point decrease as compared to the linked quarter. Average loans and leases decreased $238.5 million for the three months ended September 30, 2020 as compared to the linked quarter. The decrease in average loans and leases was primarily the result of the sale of $295.6 million of PPP loans at the end of the second quarter and to a smaller extent early in the 3rd quarter.
  
  Tax-equivalent interest income on available for sale investment securities for the three months ended September 30, 2020 decreased $216 thousand as compared to the linked quarter. The tax-equivalent yield on average available for sale investment securities was 1.86%, a 30 basis point decrease as compared to the linked quarter. The effect of the decrease in the tax-equivalent yield was partially offset by an increase of $32.5 million in average available for sale investment securities for the three months ended September 30, 2020 as compared to the linked quarter.
  
  Interest expense on deposits for the three months ended September 30, 2020 decreased $1.5 million over the linked quarter. The rate paid on average interest-bearing deposits for the three months ended September 30, 2020 was 0.41%, a 20 basis point decrease as compared to the linked quarter. Average interest-bearing deposits for the three months ended September 30, 2020 decreased $77.5 million as compared to the linked quarter.
  
  Interest expense on short-term borrowings for the three months ended September 30, 2020 decreased $224 thousand over the linked quarter. The decrease was primarily due to a $106.9 million decrease in average short-term borrowings and a 57 basis point decrease in the rate paid as compared to the linked quarter.

• Noninterest income of $21.1 million for the three months ended September 30, 2020 represented a $533 thousand increase over the linked quarter. The increase was primarily due to increases of $2.6 million, $379 thousand, and $339 thousand in fees for wealth management services, insurance commissions, and capital markets revenue, respectively, partially offset by decreases of $2.1 million and $575 thousand in net gain on sale of loans and other operating income, respectively. The increase in fees for wealth management services was primarily related to the lack of non-recurring costs associated with the wind-down of BMT Investment Advisers, which had a $2.2 million impact on fees for wealth management services in the second quarter of 2020. The decrease in net gain on sale of loans was driven by a $2.4 million gain on the sale of approximately $292.1 million of PPP loans in the second quarter of 2020.
  
  
• Noninterest expense of $35.7 million for the three months ended September 30, 2020 represented a $1.0 million increase over the linked quarter. Increases of $361 thousand, $275 thousand, $270 thousand, and $262 thousand in furniture, fixtures and equipment expenses, salaries and wages, other operating expenses, and advertising expenses, respectively, were partially offset by a decrease of $195 thousand in employee benefits.
  
  
• The Provision of $3.6 million for the three months ended September 30, 2020 decreased $661 thousand as compared to $4.3 million for the three months ended June 30, 2020. The Provisions recorded in the second and third quarters of 2020 were driven by the current and forward-looking adverse economic impacts of the COVID-19 pandemic included in the estimation of expected credit losses on loans and leases as of June 30, 2020 and September 30, 2020, respectively. Net loan and lease charge-offs for the third quarter of 2020 totaled $2.2 million, a decrease of $1.2 million as compared to $3.4 million for the second quarter of 2020.
  
  
• The effective tax rate for the third quarter of 2020 increased to 22.03% as compared to 21.09% for the second quarter of 2020. The increase in effective tax rate was primarily due to a $75 thousand increase in discrete tax expense related to stock-based compensation coupled with higher projected pretax earnings.
  

Results of Operations – Third Quarter 2020 Compared to Third Quarter 2019

• Net income for the three months ended September 30, 2020 was $13.2 million, or $0.66 diluted earnings per share, as compared to $16.4 million, or $0.81 diluted earnings per share, for the three months ended September 30, 2019. Net interest income for the three months ended September 30, 2020 was $35.0 million, a decrease of $2.4 million as compared to the same period in 2019. The Provision for the three months ended September 30, 2020, as calculated under the Current Expected Credit Loss (“CECL”) framework, increased $2.7 million as compared to the same period in 2019, which was calculated in accordance with previously-applicable GAAP. Total noninterest income increased $1.6 million, total noninterest expense increased $484 thousand, and income tax expense decreased $693 thousand for the three months ended September 30, 2020 as compared to the three months ended September 30, 2019.
  
  
• Net interest income for the three months ended September 30, 2020 was $35.0 million, a decrease of $2.4 million as compared to the same period in 2019. Tax-equivalent net interest income for the three months ended September 30, 2020 was $35.1 million, a decrease of $2.4 million as compared to the same period in 2019. Tax-equivalent net interest income for the third quarter of 2020 was positively impacted by the accretion of purchase accounting fair value marks of $800 thousand as compared to $1.6 million for the same period in 2019. Excluding the effects of these purchase accounting fair value marks, the adjusted tax-equivalent net interest income for the three months ended September 30, 2020 was $34.3 million, a decrease of $1.6 million as compared to the same period in 2019. A reconciliation of this and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release.
  
  The tax-equivalent net interest margin was 3.03% for the three months ended September 30, 2020 as compared to 3.54% for the same period in 2019. Adjusting for the impacts of the accretion of purchase accounting fair value marks, the adjusted tax-equivalent net interest margin was 2.96% and 3.39% for three months ended September 30, 2020 and 2019, respectively. The main drivers for the decrease in the adjusted tax-equivalent net interest margin were the rate and volume changes of interest-bearing assets and liabilities as discussed in the below bullet points. A reconciliation of this and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release.
  
  Items contributing to the decrease in tax-equivalent net interest income adjusted for purchase accounting included decreases of $8.0 million and $1.2 million in tax-equivalent interest and fees earned on loans and leases and tax-equivalent interest income on available for sale investment securities, respectively, partially offset by decreases of $6.6 million and $929 thousand in interest paid on deposits and interest expense on short-term borrowings, respectively, for the three months ended September 30, 2020 as compared to the same period in 2019.
  
  Tax-equivalent interest and fees earned on loans and leases for the three months ended September 30, 2020 decreased $8.7 million as compared to the same period in 2019. The tax-equivalent yield on average loans and leases for the three months ended September 30, 2020 was 3.97%, a 116 basis point decrease as compared to the same period in 2019. The effect of the decrease in the tax-equivalent yield was partially offset by an increase of $168.6 million in average loans and leases for the three months ended September 30, 2020 as compared to same period in 2019.
  
  Tax-equivalent interest income on available for sale investment securities for the three months ended September 30, 2020 decreased $1.2 million as compared to the same period in 2019. The tax-equivalent yield on average available for sale investment securities for the three months ended September 30, 2020 was 1.86%, a 65 basis point decrease as compared to the same period in 2019 coupled with a decrease of $47.7 million in average available for sale investment securities for the three months ended September 30, 2020 as compared to the same period in 2019.
  
  Interest expense on deposits for the three months ended September 30, 2020 decreased $6.5 million as compared to the same period in 2019. The rate paid on average interest-bearing deposits for the three months ended September 30, 2020 was 0.41%, a 95 basis point decrease as compared to the same period in 2019. The effect of the decrease in the tax-equivalent rate paid was partially offset by an increase of $115.4 million in average interest-bearing deposits for the three months ended September 30, 2020 as compared to the same period in 2019.
  
  Interest expense on short-term borrowings for the three months ended September 30, 2020 decreased $929 thousand as compared to the same period in 2019. The decrease was primarily due to a $140.1 million decrease in average short-term borrowings for the three months ended September 30, 2020 as compared to the same period in 2019 coupled with a 208 basis point decrease in the rate paid for the three months ended September 30, 2020 as compared to the same period in 2019.
  

• Noninterest income of $21.1 million for the three months ended September 30, 2020 represented a $1.6 million increase over the same period in 2019. The increase was primarily due to increases of $1.2 million, $881 thousand, and $347 thousand in capital markets revenue, fees for wealth management services, and net gain on sale of loans, respectively, partially offset by decreases of $219 thousand, $193 thousand, $182 thousand, and $160 thousand in dividends on the Corporation's equity stocks issued by the Federal Home Loan Bank (“FHLB”) and the Federal Reserve Bank, service charges on deposits, loan servicing fees, and insurance commissions, respectively.
  
  
• Noninterest expense of $35.7 million for the three months ended September 30, 2020 represented a $484 thousand increase over the same period in 2019. Increases of $1.0 million and $674 thousand in other operating expenses and professional fees, respectively, were partially offset by decreases of $564 thousand, $399 thousand, and $262 thousand in salaries and wages, Pennsylvania bank shares tax, and employee benefits, respectively. The increase in other operating expenses included a $627 increase in FDIC insurance expense primarily due to a small bank assessment credit of $407 thousand applied in the third quarter of 2019.
  
  
• The Provision of $3.6 million for the three months ended September 30, 2020, as calculated under the CECL framework, increased $2.7 million as compared to the same period in 2019, which was calculated in accordance with previously-applicable GAAP. The Provision recorded in the third quarter of 2020 was driven by the current and forward-looking adverse economic impacts of the COVID-19 pandemic included in the estimation of expected credit losses on loans and leases as of September 30, 2020. Net loan and lease charge-offs for the third quarter of 2020 totaled $2.2 million, an increase of $863 thousand as compared to $1.3 million for the third quarter in 2019.
  
  
• The effective tax rate for the third quarter of 2020 increased to 22.03% as compared to 21.20% for the third quarter of 2019. The increase in effective tax rate was primarily due to a $105 thousand increase in discrete tax expense related to stock-based compensation.
  

Financial Condition – September 30, 2020 Compared to December 31, 2019

• Total assets as of September 30, 2020 were $5.05 billion, a decrease of $216.3 million from December 31, 2019. The decrease was primarily due to the $441.2 million decrease in available for sale investment securities as discussed in the bullet point below. Partially offsetting this decrease were increases of $203.5 million and $93.9 million in cash balances and other assets. The increase in cash balances was primarily due to the sale of approximately $292.1 million of PPP loans in the second quarter of 2020 coupled with higher deposit balances resulting from PPP loan funds deposited with the Bank. The increase in other assets was primarily driven by an $88.4 million increase in the fair value of interest rate swaps.
  
  
• Available for sale investment securities as of September 30, 2020 totaled $564.8 million, a decrease of $441.2 million from December 31, 2019. The decrease was primarily due to the maturing of $500.0 million of short-term U.S. Treasury securities in the first quarter of 2020, partially offset by increases of $65.8 million, $9.3 million, and $6.5 million of mortgage-backed securities, corporate bonds, and collateralized loan obligations, respectively.
  
  
• Total portfolio loans and leases of $3.68 billion as of September 30, 2020 decreased $12.6 million, or 0.3%, from December 31, 2019. Decreases of $45.8 million, $45.1 million, $10.7 million, and $10.2 million in residential mortgages 1st liens, home equity lines of credit, residential mortgage 2nd liens and consumer loans, respectively, were partially offset by increases of $45.6 million, $40.6 million and $33.1 million in nonowner-occupied commercial real estate loans, owner-occupied commercial real estate loans and commercial and industrial loans, respectively. In conjunction with the adoption of CECL, the Corporation has revised its portfolio segmentation to align with the methodology applied in determining the allowance for credit losses (“ACL”) for loans and leases under CECL, which is based on federal call report codes which classify loans based on the primary collateral supporting the loan. Portfolio segmentation prior to the adoption of CECL was based on product type or purpose. As such, certain reclassifications were made to conform previous years to the current year's presentation.
  
  As of September 30, 2020, 552 loans and leases in the amount of $305.2 million, comprising 8.3% of the Bank's portfolio loans and leases, are within a deferral period under the Bank's consumer and commercial loan and lease modification programs, as compared to 1,668 loans and leases in the amount of $767.1 million, comprising 20.6% of the Bank's portfolio loans and leases, as of June 30, 2020.
  

• The ACL on loans and leases was $22.6 million as of December 31, 2019. Effective January 1, 2020, the Corporation adopted CECL and recognized an increase in the ACL on loans and leases of approximately $3.2 million, as a cumulative effect of a change in accounting principle, with a corresponding decrease, net of tax, in retained earnings. The ACL on loans and leases was $56.4 million as of September 30, 2020, an increase of $33.8 million as compared to December 31, 2019. The significant increase was driven by the current and forward-looking adverse economic impacts of the COVID-19 pandemic included in the estimation of expected credit losses on loans and leases as of September 30, 2020 as compared to our initial adoption of CECL.
  
  
• Deposits of $4.01 billion as of September 30, 2020 increased $171.3 million from December 31, 2019. Increases of $333.2 million, $93.0 million, and $24.7 million in noninterest bearing deposits, money market accounts, and savings accounts, respectively, were partially offset by decreases of $129.4 million, $100.5 million, and $38.9 million in interest-bearing demand accounts, wholesale non-maturity deposits, and retail time deposits, respectively. The increase in noninterest bearing deposits was primarily due to the Bank's PPP loan customers depositing loan funds into Bank deposit accounts during the second quarter of 2020.
  
  
• Borrowings of $189.1 million as of September 30, 2020, which include short-term borrowings, long-term FHLB advances, subordinated notes and junior subordinated debentures decreased $476.9 million from December 31, 2019, primarily due to decreases of $469.8 million and $7.4 million in short-term borrowings and long-term FHLB advances, respectively. The decrease in short-term borrowings was primarily due to the maturing of approximately $432.4 million of short-term borrowings in the first quarter of 2020, which was used to partially fund the purchase of $500.0 million of short-term U.S. Treasury securities included on the balance sheet as of December 31, 2019. Additionally, the increase in deposits reduced the need to obtain wholesale funding such as FHLB advances at September 30, 2020 as compared to December 31, 2019.
  
  
• Wealth assets totaled $17.24 billion as of September 30, 2020, an increase of $696.2 million from December 31, 2019. As of September 30, 2020, wealth assets consisted of $10.69 billion of wealth assets where fees are set at fixed amounts, an increase of $1.12 billion from December 31, 2019, and $6.56 billion of wealth assets where fees are predominantly determined based on the market value of the assets held in their accounts, a decrease of $419.1 million from December 31, 2019.
  
  
• The capital ratios for the Bank and the Corporation, as of September 30, 2020, as shown in the attached tables, indicate regulatory capital levels in excess of the regulatory minimums and the levels necessary for the Bank to be considered “well capitalized.” In September 2020, the U.S. banking agencies issued a final rule that provides banking organizations with an alternative option to delay for two years an estimate of CECL’s effect on regulatory capital, relative to the incurred loss methodology’s effect on regulatory capital, followed by a three-year transition period. This final rule is consistent with the interim final rule issued by the U.S. banking agencies in March 2020. The current and prior quarter ratios reflect the Corporation's election of the five-year transition provision.
  

EARNINGS CONFERENCE CALL

The Corporation will hold a third quarter 2020 earnings conference call at 8:30 a.m. Eastern Time on Friday, October 23, 2020. Interested parties may participate by calling 1-888-317-6016. A taped replay of the conference call will be available one hour after the conclusion of the call and will remain available through 9:00 a.m. Eastern Time on Friday, November 23, 2020. This recording may be obtained by calling 1-877-344-7529, referring to conference number 10148408.

The Corporation will simultaneously broadcast the earnings conference call live over the Internet through a webcast on the investor relations portion of the Corporation’s website. To access the call via the Internet, please visit the website at http://services.choruscall.com/links/bmtc201023.html. An online archive of the webcast will be available within one hour of the conclusion of the earnings conference call. Within 24 hours after the conclusion of the earnings conference call, an online transcript will be available at the following website:
https://platform.mi.spglobal.com/web/client?auth=inherit&overridec ....

The Corporation’s decision to hold an earnings conference call for the third quarter of 2020 is not indicative of the Corporation’s future plans with respect to earnings conference calls, and decisions regarding whether to continue holding earnings conference calls will be made at a future date.

FORWARD LOOKING STATEMENTS AND SAFE HARBOR

This communication 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,” “strategy,” “forecast,” “project,” “annualized,” “are optimistic,” “are looking,” “are looking forward” and “believe” or other similar words and phrases may identify forward-looking statements. Persons reading this communication 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. The COVID-19 pandemic (the “Pandemic”) is adversely affecting us, our clients, counterparties, employees, and third-party service providers, and the ultimate extent of the impacts on our business, financial position, results of operations, liquidity, and prospects is uncertain. Continued deterioration in general business and economic conditions, including further increases in unemployment rates, or turbulence in domestic or global financial markets could adversely affect our revenues and the values of our assets and liabilities, reduce the availability of funding, lead to a tightening of credit, and further increase stock price volatility. In addition, changes to statutes, regulations, or regulatory policies or practices as a result of, or in response to the Pandemic, could affect us in substantial and unpredictable ways. Other factors include, among others, 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 or accounting standards, including ASU 2016-13 (Topic 326), “Measurement of Credit Losses on Financial Instruments,” commonly referenced as the Current Expected Credit Loss model, which has changed how we estimate credit losses and may result in further increases in the required level of our allowance for credit losses; unanticipated regulatory or legal proceedings, outcomes of litigation or other contingencies; cybersecurity events; the inability of key third-party providers to perform their obligations to us; our ability to attract and retain key personnel; competition in our marketplace; war or terrorist activities; material differences in the actual financial results, cost savings and revenue enhancements associated with our acquisitions; uncertainty regarding the future of LIBOR; the impact of public health issues and pandemics, and their effects on the economic and business environments in which we operate; the effect of the Pandemic, including on our credit quality and business operations, as well as its impact on general economic and financial market conditions; and other factors as described in our securities filings with the U.S. Securities and Exchange Commission (“SEC”). All forward-looking statements and information set forth herein are based on Corporation 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 SEC, including our most recent Annual Report on Form 10-K, as updated by our quarterly or other reports subsequently filed with the SEC, including our most recent Quarterly Report on Form 10-Q.

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

Bryn Mawr Bank Corporation
Summary Financial Information (unaudited)
(dollars in thousands, except per share data)
	As of or For the Three Months Ended																				For the Nine Months Ended
	September 30, 2020				June 30, 2020				March 31, 2020				December 31, 2019				September 30, 2019				September 30, 2020				September 30, 2019
Consolidated Balance Sheet (selected items)
Interest-bearing deposits with banks	$	241,763			$	448,113			$	69,239			$	42,328			$	86,158
Investment securities		584,529				550,974				537,592				1,027,182				625,452
Loans held for sale		4,574				4,116				2,785				4,249				5,767
Portfolio loans and leases		3,676,684				3,722,165				3,767,166				3,689,313				3,540,747
Allowance for credit losses ("ACL") on loans and leases		(56,428	)			(54,974	)			(54,070	)			(22,602	)			(20,777	)
Goodwill and other intangible assets		200,445				201,315				202,225				203,143				204,096
Total assets		5,046,939				5,271,311				4,923,033				5,263,259				4,828,641
Deposits - interest-bearing		2,783,188				3,026,152				2,850,986				2,944,072				2,794,079
Deposits - non-interest-bearing		1,230,391				1,217,496				927,922				898,173				904,409
Short-term borrowings		23,456				28,891				162,045				493,219				203,471
Long-term FHLB advances		44,872				44,837				47,303				52,269				44,735
Subordinated notes		98,839				98,794				98,750				98,705				98,660
Jr. subordinated debentures		21,889				21,843				21,798				21,753				21,709
Total liabilities		4,434,322				4,667,637				4,329,854				4,651,032				4,227,706
Total shareholders' equity		612,617				603,674				593,179				612,227				600,935
Average Balance Sheet (selected items)
Interest-bearing deposits with banks	$	336,225			$	195,966			$	50,330			$	66,060			$	48,597			$	194,652			$	39,785
Investment securities		574,094				542,321				542,876				593,289				622,336				553,174				593,449
Loans held for sale		4,393				3,805				2,319				4,160				4,375				3,509				2,992
Portfolio loans and leases		3,697,102				3,936,227				3,736,067				3,594,449				3,528,548				3,789,460				3,508,837
Total interest-earning assets		4,611,814				4,678,319				4,331,592				4,257,958				4,203,856				4,540,795				4,145,063
Goodwill and intangible assets		200,931				201,823				202,760				203,663				204,637				201,835				205,641
Total assets		5,157,588				5,226,074				4,844,918				4,775,407				4,760,074				5,076,490				4,653,064
Deposits - interest-bearing		2,891,652				2,969,113				2,853,712				2,799,050				2,776,226				2,904,777				2,748,798
Short-term borrowings		29,913				136,816				140,585				121,612				169,985				102,173				132,100
Long-term FHLB advances		44,849				46,161				47,335				53,443				45,698				46,110				51,125
Subordinated notes		98,815				98,770				98,725				98,681				98,634				98,770				98,588
Jr. subordinated debentures		21,859				21,814				21,768				21,726				21,680				21,814				21,638
Total interest-bearing liabilities		3,087,088				3,272,674				3,162,125				3,094,512				3,112,223				3,173,644				3,052,249
Total liabilities		4,548,395				4,625,511				4,229,908				4,168,899				4,164,763				4,468,231				4,070,025
Total shareholders' equity		609,193				600,563				615,010				606,508				595,311				608,259				583,039
Income Statement
Net interest income	$	35,032			$	37,385			$	36,333			$	35,985			$	37,398			$	108,750			$	111,656
Provision for loan and lease losses		3,641				4,302				32,335				2,225				919				40,278				6,282
Noninterest income		21,099				20,566				18,300				23,255				19,455				59,965				58,929
Noninterest expense		35,657				34,636				36,418				36,430				35,173				106,711				110,085
Income tax expense (benefit)		3,709				4,010				(2,957	)			4,202				4,402				4,762				11,405
Net income (loss)		13,124				15,003				(11,163	)			16,383				16,359				16,964				42,813
Net loss attributable to noncontrolling interest		(40	)			(32	)			-				(1	)			(1	)			(72	)			(9	)
Net income (loss) attributable to Bryn Mawr Bank Corporation		13,164				15,035				(11,163	)			16,384				16,360				17,036				42,822
Basic earnings per share		0.66				0.75				(0.56	)			0.81				0.81				0.85				2.13
Diluted earnings per share		0.66				0.75				(0.56	)			0.81				0.81				0.85				2.12
Net income (loss) (core) (1)		13,164				15,399				(11,163	)			16,384				16,360				17,400				46,375
Basic earnings per share (core) (1)		0.66				0.77				(0.56	)			0.81				0.81				0.87				2.30
Diluted earnings per share (core) (1)		0.66				0.77				(0.56	)			0.81				0.81				0.87				2.29
Dividends paid or accrued per share		0.27				0.26				0.26				0.26				0.26				0.79				0.76
Profitability Indicators
Return on average assets		1.02	%			1.16	%			-0.93	%			1.36	%			1.36	%			0.45	%			1.23	%
Return on average equity		8.60	%			10.07	%			-7.30	%			10.72	%			10.90	%			3.74	%			9.82	%
Return on tangible equity(1)		13.47	%			15.86	%			-10.17	%			16.85	%			17.35	%			6.29	%			15.94	%
Return on tangible equity (core)(1)		13.47	%			16.23	%			-10.17	%			16.85	%			17.35	%			6.41	%			17.19	%
Return on average assets (core)(1)		1.02	%			1.19	%			-0.93	%			1.36	%			1.36	%			0.46	%			1.33	%
Return on average equity (core)(1)		8.60	%			10.31	%			-7.30	%			10.72	%			10.90	%			3.82	%			10.63	%
Tax-equivalent net interest margin		3.03	%			3.22	%			3.38	%			3.36	%			3.54	%			3.21	%			3.61	%
Efficiency ratio(1)		61.97	%			57.25	%			64.98	%			59.89	%			60.19	%			61.33	%			60.23	%
Share Data
Closing share price	$	24.87			$	27.66			$	28.38			$	41.24			$	36.51
Book value per common share	$	30.70			$	30.29			$	29.78			$	30.42			$	29.86
Tangible book value per common share(1)	$	20.69			$	20.23			$	19.66			$	20.36			$	19.75
Price / book value		81.01	%			91.32	%			95.30	%			135.57	%			122.27	%
Price / tangible book value(1)		120.20	%			136.73	%			144.35	%			202.55	%			184.86	%
Weighted average diluted shares outstanding		20,021,617				20,008,219				20,053,159				20,213,008				20,208,630				20,062,108				20,236,331
Shares outstanding, end of period		19,958,186				19,927,893				19,921,524				20,126,296				20,124,193
Wealth Management Information:
Wealth assets under mgmt, administration, supervision and brokerage (2)	$	17,244,307			$	17,012,903			$	15,593,732			$	16,548,060			$	15,609,786
Fees for wealth management services	$	11,707			$	9,069			$	11,168			$	11,672			$	10,826
Capital Ratios(3)
Bryn Mawr Trust Company ("BMTC")
Tier I capital to risk weighted assets ("RWA")		12.02	%			11.68	%			11.10	%			11.47	%			12.17	%
Total capital to RWA		13.27	%			12.93	%			12.33	%			12.09	%			12.75	%
Tier I leverage ratio		9.16	%			8.75	%			9.12	%			9.37	%			9.75	%
Tangible equity ratio (1)		9.36	%			8.67	%			8.98	%			8.58	%			9.75	%
Common equity Tier I capital to RWA		12.02	%			11.68	%			11.10	%			11.47	%			12.17	%
Bryn Mawr Bank Corporation ("BMBC")
Tier I capital to RWA		11.48	%			11.27	%			10.80	%			11.42	%			11.33	%
Total capital to RWA		15.19	%			15.14	%			14.62	%			14.69	%			14.61	%
Tier I leverage ratio		8.75	%			8.44	%			8.88	%			9.33	%			9.07	%
Tangible equity ratio (1)		8.52	%			7.95	%			8.30	%			8.10	%			8.60	%
Common equity Tier I capital to RWA		10.92	%			10.71	%			10.25	%			10.86	%			10.75	%
Asset Quality Indicators
Net loan and lease charge-offs ("NCO"s)	$	2,187			$	3,398			$	4,073			$	400			$	1,324			$	9,658			$	4,931
Loans and leases risk-rated Special Mention	$	48,267			$	55,171			$	14,833			$	19,922			$	40,494
Total classified loans and leases		175,501				154,687				60,972				66,901				36,192
Total criticized loans and leases	$	223,768			$	209,858			$	75,805			$	86,823			$	76,686
Nonperforming loans and leases ("NPL"s)	$	8,597			$	8,418			$	7,557			$	10,648			$	14,119
Other real estate owned ("OREO")		-				-				-				-				72
Total nonperforming assets ("NPA"s)	$	8,597			$	8,418			$	7,557			$	10,648			$	14,191
Nonperforming loans and leases 30 or more days past due	$	4,153			$	3,223			$	3,380			$	6,314			$	4,940
Performing loans and leases 30 to 89 days past due		9,351				10,022				19,930				7,196				5,273
Performing loans and leases 90 or more days past due		-				-				-				-				-
Total delinquent loans and leases	$	13,504			$	13,245			$	23,310			$	13,510			$	10,213
Delinquent loans and leases to total loans and leases		0.37	%			0.36	%			0.62	%			0.37	%			0.29	%
Delinquent performing loans and leases to total loans and leases		0.25	%			0.27	%			0.53	%			0.19	%			0.15	%
NCOs / average loans and leases (annualized)		0.24	%			0.35	%			0.44	%			0.04	%			0.15	%			0.34	%			0.19	%
NPLs / total portfolio loans and leases		0.23	%			0.23	%			0.20	%			0.29	%			0.40	%
NPAs / total loans and leases and OREO		0.23	%			0.23	%			0.20	%			0.29	%			0.40	%
NPAs / total assets		0.17	%			0.16	%			0.15	%			0.20	%			0.29	%
ACL on loans and leases / NPLs		656.37	%			653.05	%			715.50	%			212.27	%			147.16	%
ACL / classified loans and leases		32.15	%			35.54	%			88.68	%			33.78	%			57.41	%
ACL / criticized loans and leases		25.22	%			26.20	%			71.33	%			26.03	%			27.09	%
ACL on loans and leases / portfolio loans		1.53	%			1.48	%			1.44	%			0.61	%			0.59	%
ACL on loans and leases for originated loans and leases / Originated loans and leases (1)		1.56	%			1.51	%			1.47	%			0.68	%			0.66	%
(Total ACL on loans and leases + Loan mark) / Total Gross portfolio loans and leases (1)		1.73	%			1.69	%			1.68	%			0.91	%			0.92	%
Troubled debt restructurings ("TDR"s) included in NPLs	$	1,393			$	1,792			$	3,248			$	3,018			$	5,755
TDRs in compliance with modified terms		8,590				10,013				4,852				5,071				5,069
Total TDRs	$	9,983			$	11,805			$	8,100			$	8,089			$	10,824
(1) Non-GAAP measure - see Appendix for Non-GAAP to GAAP reconciliation.
(2) Brokerage assets represent assets held at a registered broker dealer under a clearing agreement.
(3) Capital Ratios for the current quarter are to be considered preliminary until the Call Reports are filed. The March 31, 2020, June 30, 2020, and September 30, 2020 ratios reflect the Corporation’s planned election of a five-year transition provision to delay for two years the full impact of CECL on regulatory capital, followed by a three-year transition period.

Bryn Mawr Bank Corporation
Detailed Balance Sheets (unaudited)
(dollars in thousands)
	September 30, 2020				June 30, 2020				March 31, 2020				December 31, 2019				September 30, 2019
Assets
Cash and due from banks	$	15,670			$	16,408			$	17,803			$	11,603			$	8,582
Interest-bearing deposits with banks		241,763				448,113				69,239				42,328				86,158
Cash and cash equivalents		257,433				464,521				87,042				53,931				94,740
Investment securities, available for sale		564,774				530,581				516,466				1,005,984				604,181
Investment securities, held to maturity		11,725				12,592				13,369				12,577				12,947
Investment securities, trading		8,030				7,801				7,757				8,621				8,324
Loans held for sale		4,574				4,116				2,785				4,249				5,767
Portfolio loans and leases, originated		3,396,068				3,422,890				3,424,601				3,320,816				3,137,769
Portfolio loans and leases, acquired		280,616				299,275				342,565				368,497				402,978
Total portfolio loans and leases		3,676,684				3,722,165				3,767,166				3,689,313				3,540,747
Less: Allowance for credit losses on originated loan and leases		(52,968	)			(51,659	)			(50,365	)			(22,526	)			(20,675	)
Less: Allowance for credit losses on acquired loan and leases		(3,460	)			(3,315	)			(3,705	)			(76	)			(102	)
Total allowance for credit losses on loans and leases		(56,428	)			(54,974	)			(54,070	)			(22,602	)			(20,777	)
Net portfolio loans and leases		3,620,256				3,667,191				3,713,096				3,666,711				3,519,970
Premises and equipment		60,369				61,778				63,144				64,965				66,439
Operating lease right-of-use assets		38,536				39,348				40,157				40,961				42,200
Accrued interest receivable		16,609				15,577				12,017				12,482				12,746
Mortgage servicing rights		2,881				3,440				4,115				4,450				4,580
Bank owned life insurance		60,072				59,728				59,399				59,079				58,749
Federal Home Loan Bank ("FHLB") stock		4,506				4,506				11,928				23,744				16,148
Goodwill		184,012				184,012				184,012				184,012				184,012
Intangible assets		16,433				17,303				18,213				19,131				20,084
Other investments		17,129				17,055				16,786				16,683				16,683
Other assets		179,600				181,762				172,747				85,679				161,071
Total assets	$	5,046,939			$	5,271,311			$	4,923,033			$	5,263,259			$	4,828,641
Liabilities
Deposits
Noninterest-bearing	$	1,230,391			$	1,217,496			$	927,922			$	898,173			$	904,409
Interest-bearing		2,783,188				3,026,152				2,850,986				2,944,072				2,794,079
Total deposits		4,013,579				4,243,648				3,778,908				3,842,245				3,698,488
Short-term borrowings		23,456				28,891				162,045				493,219				203,471
Long-term FHLB advances		44,872				44,837				47,303				52,269				44,735
Subordinated notes		98,839				98,794				98,750				98,705				98,660
Jr. subordinated debentures		21,889				21,843				21,798				21,753				21,709
Operating lease liabilities		42,895				43,693				44,482				45,258				46,506
Accrued interest payable		7,984				7,907				7,230				6,248				9,015
Other liabilities		180,808				178,024				169,338				91,335				105,122
Total liabilities		4,434,322				4,667,637				4,329,854				4,651,032				4,227,706
Shareholders' equity
Common stock		24,710				24,662				24,655				24,650				24,646
Paid-in capital in excess of par value		380,770				380,167				379,495				378,606				377,806
Less: common stock held in treasury, at cost		(89,100	)			(88,612	)			(88,540	)			(81,174	)			(81,089	)
Accumulated other comprehensive income, net of tax		10,139				9,019				8,869				2,187				2,698
Retained earnings		286,865				279,165				269,395				288,653				277,568
Total Bryn Mawr Bank Corporation shareholders' equity		613,384				604,401				593,874				612,922				601,629
Noncontrolling interest		(767	)			(727	)			(695	)			(695	)			(694	)
Total shareholders' equity		612,617				603,674				593,179				612,227				600,935
Total liabilities and shareholders' equity	$	5,046,939			$	5,271,311			$	4,923,033			$	5,263,259			$	4,828,641

Bryn Mawr Bank Corporation
Supplemental Balance Sheet Information (unaudited)
(dollars in thousands)
	Portfolio Loans and Leases(1) as of
	September 30, 2020				June 30, 2020				March 31, 2020				December 31, 2019				September 30, 2019
Commercial real estate - nonowner-occupied	$	1,382,757			$	1,375,904			$	1,354,416			$	1,337,167			$	1,238,881
Commercial real estate - owner-occupied		568,219				542,688				530,667				527,607				499,202
Home equity lines of credit		179,125				194,767				209,278				224,262				227,682
Residential mortgage - 1st liens		660,923				695,270				710,495				706,690				702,588
Residential mortgage - junior liens		26,150				33,644				35,583				36,843				37,240
Construction		186,415				212,374				221,116				202,198				195,161
Total real estate loans		3,003,589				3,054,647				3,061,555				3,034,767				2,900,754
Commercial & Industrial		465,315				457,529				491,298				432,227				426,084
Consumer		47,043				43,762				45,951				57,241				50,760
Leases		160,737				166,227				168,362				165,078				163,149
Total non-real estate loans and leases		673,095				667,518				705,611				654,546				639,993
Total portfolio loans and leases	$	3,676,684			$	3,722,165			$	3,767,166			$	3,689,313			$	3,540,747
	Nonperforming Loans and Leases(1) as of
	September 30, 2020				June 30, 2020				March 31, 2020				December 31, 2019				September 30, 2019
Commercial real estate - nonowner-occupied	$	849			$	245			$	181			$	199			$	3,055
Commercial real estate - owner-occupied		3,597				4,046				2,543				4,159				4,535
Home equity lines of credit		890				915				758				636				693
Residential mortgage - 1st liens		862				912				1,080				2,447				2,693
Residential mortgage - junior liens		50				72				79				83				84
Total nonperforming real estate loans		6,248				6,190				4,641				7,524				11,060
Commercial & Industrial		1,784				1,973				2,692				2,180				1,991
Consumer		31				36				52				61				75
Leases		534				219				172				883				993
Total nonperforming non-real estate loans and leases		2,349				2,228				2,916				3,124				3,059
Total nonperforming portfolio loans and leases	$	8,597			$	8,418			$	7,557			$	10,648			$	14,119
	Net Loan and Lease Charge-Offs (Recoveries)(1) for the Three Months Ended
	September 30, 2020				June 30, 2020				March 31, 2020				December 31, 2019				September 30, 2019
Commercial real estate - nonowner-occupied	$	(2	)		$	(4	)		$	(2	)		$	(1,067	)		$	(7	)
Commercial real estate - owner-occupied		494				1,234				-				190				680
Home equity lines of credit		-				(4	)			114				33				(22	)
Residential mortgage - 1st liens		(13	)			420				727				378				(7	)
Residential mortgage - junior liens		-				-				-				-				-
Construction		(1	)			(1	)			(1	)			(1	)			(1	)
Total net charge-offs of real estate loans		478				1,645				838				(467	)			643
Commercial & Industrial		1,522				499				612				57				(15	)
Consumer		134				238				261				227				187
Leases		53				1,016				2,362				583				509
Total net charge-offs of non-real estate loans and leases		1,709				1,753				3,235				867				681
Total net charge-offs	$	2,187			$	3,398			$	4,073			$	400			$	1,324
(1) In conjunction with the adoption of CECL, the Corporation has revised its portfolio segmentation to align with the methodology applied in determining the ACL for loans and leases under CECL, which is based on federal call report codes, or collateral. Portfolio segmentation prior to the adoption of CECL was based on product type or purpose. As such, certain reclassifications were made to conform previous years to the current year's presentation.

Bryn Mawr Bank Corporation
Supplemental Balance Sheet Information (unaudited)
(dollars in thousands)
	Investment Securities Available for Sale, at Fair Value
	September 30, 2020			June 30, 2020			March 31, 2020			December 31, 2019			September 30, 2019
U.S. Treasury securities	$	100		$	100		$	101		$	500,101		$	101
Obligations of the U.S. Government and agencies		90,928			114,149			106,679			102,020			172,753
State & political subdivisions - tax-free		3,178			4,583			4,562			5,379			6,327
Mortgage-backed securities		431,822			377,204			374,775			366,002			388,891
Collateralized mortgage obligations		22,253			25,873			29,699			31,832			35,459
Collateralized loan obligations		6,500			-			-			-			-
Corporate bonds		9,343			8,022			-			-			-
Other debt securities		650			650			650			650			650
Total investment securities available for sale, at fair value	$	564,774		$	530,581		$	516,466		$	1,005,984		$	604,181
	Unrealized Gain (Loss) on Investment Securities Available for Sale
	September 30, 2020			June 30, 2020			March 31, 2020			December 31, 2019			September 30, 2019
U.S. Treasury securities	$	-		$	-		$	1		$	35		$	1
Obligations of the U.S. Government and agencies		995			1,103			1,036			(159)			188
State & political subdivisions - tax-free		27			30			10			13			8
Mortgage-backed securities		12,901			11,683			11,554			5,025			4,605
Collateralized mortgage obligations		662			702			778			36			180
Corporate bonds		343			22			-			-			-
Total unrealized gains on investment securities available for sale	$	14,928		$	13,540		$	13,379		$	4,950		$	4,982
	Deposits
	September 30, 2020			June 30, 2020			March 31, 2020			December 31, 2019			September 30, 2019
Interest-bearing deposits:
Interest-bearing demand	$	815,561		$	910,441		$	750,127		$	944,915		$	778,809
Money market		1,199,429			1,239,523			1,133,952			1,106,478			983,170
Savings		245,167			249,636			247,799			220,450			248,539
Retail time deposits		366,245			400,186			406,828			405,123			467,346
Wholesale non-maturity deposits		77,356			146,463			198,888			177,865			274,121
Wholesale time deposits		79,430			79,903			113,392			89,241			42,094
Total interest-bearing deposits		2,783,188			3,026,152			2,850,986			2,944,072			2,794,079
Noninterest-bearing deposits		1,230,391			1,217,496			927,922			898,173			904,409
Total deposits	$	4,013,579		$	4,243,648		$	3,778,908		$	3,842,245		$	3,698,488

Bryn Mawr Bank Corporation
Detailed Income Statements (unaudited)
(dollars in thousands, except per share data)
	For the Three Months Ended																				For the Nine Months Ended
	September 30, 2020				June 30, 2020				March 31, 2020				December 31, 2019				September 30, 2019				September 30, 2020				September 30, 2019
Interest income:
Interest and fees on loans and leases	$	36,799			$	40,690			$	42,795			$	43,220			$	45,527			$	120,284			$	135,147
Interest on cash and cash equivalents		85				37				111				195				143				233				348
Interest on investment securities		2,658				2,894				3,201				3,545				3,903				8,753				10,934
Total interest income		39,542				43,621				46,107				46,960				49,573				129,270				146,429
Interest expense:
Interest on deposits		2,967				4,476				7,637				8,674				9,510				15,080				27,262
Interest on short-term borrowings		8				232				453				555				937				693				2,237
Interest on FHLB advances		234				155				244				279				243				633				790
Interest on jr. subordinated debentures		207				229				295				323				340				731				1,050
Interest on subordinated notes		1,094				1,144				1,145				1,144				1,145				3,383				3,434
Total interest expense		4,510				6,236				9,774				10,975				12,175				20,520				34,773
Net interest income		35,032				37,385				36,333				35,985				37,398				108,750				111,656
Provision for credit losses ("PCL") on loans and leases		3,641				4,302				32,335				2,225				919				40,278				6,282
Net interest income after PCL on loans and leases		31,391				33,083				3,998				33,760				36,479				68,472				105,374
Noninterest income:
Fees for wealth management services		11,707				9,069				11,168				11,672				10,826				31,944				32,728
Insurance commissions		1,682				1,303				1,533				1,666				1,842				4,518				5,211
Capital markets revenue		3,314				2,975				2,361				5,455				2,113				8,650				5,821
Service charges on deposits		663				603				846				858				856				2,112				2,516
Loan servicing and other fees		373				452				461				489				555				1,286				1,717
Net gain on sale of loans		1,021				3,134				782				597				674				4,937				1,745
Net gain (loss) on sale of other real estate owned		-				-				148				(48	)			(12	)			148				(36	)
Dividends on FHLB and FRB stocks		127				243				444				432				346				814				1,073
Other operating income		2,212				2,787				557				2,134				2,255				5,556				8,154
Total noninterest income		21,099				20,566				18,300				23,255				19,455				59,965				58,929
Noninterest expense:
Salaries and wages		17,201				16,926				16,989				18,667				17,765				51,116				55,704
Employee benefits		3,026				3,221				3,500				2,685				3,288				9,747				10,771
Occupancy and bank premises		3,055				3,033				3,015				3,206				3,008				9,103				9,385
Furniture, fixtures and equipment		2,481				2,120				2,431				2,401				2,335				7,032				7,292
Advertising		458				196				401				599				587				1,055				1,506
Amortization of intangible assets		870				910				918				953				954				2,698				2,848
Professional fees		1,718				1,575				1,368				1,754				1,044				4,661				3,680
Pennsylvania bank shares tax		115				116				116				42				514				347				1,436
Data processing		1,403				1,479				1,394				1,517				1,377				4,276				4,000
Other operating expenses		5,330				5,060				6,286				4,606				4,301				16,676				13,463
Total noninterest expense		35,657				34,636				36,418				36,430				35,173				106,711				110,085
Income (loss) before income taxes		16,833				19,013				(14,120	)			20,585				20,761				21,726				54,218
Income tax expense (benefit)		3,709				4,010				(2,957	)			4,202				4,402				4,762				11,405
Net income (loss)	$	13,124			$	15,003			$	(11,163	)		$	16,383			$	16,359			$	16,964			$	42,813
Net (loss) attributable to noncontrolling interest		(40	)			(32	)			-				(1	)			(1	)			(72	)			(9	)
Net income (loss) attributable to Bryn Mawr Bank Corporation	$	13,164			$	15,035			$	(11,163	)		$	16,384			$	16,360			$	17,036			$	42,822
Per share data:
Weighted average shares outstanding		19,945,634				19,926,737				20,053,159				20,124,553				20,132,117				19,975,069				20,148,289
Dilutive common shares		75,983				81,482				-				88,455				76,513				87,039				88,042
Weighted average diluted shares		20,021,617				20,008,219				20,053,159				20,213,008				20,208,630				20,062,108				20,236,331
Basic earnings per common share	$	0.66			$	0.75			$	(0.56	)		$	0.81			$	0.81			$	0.85			$	2.13
Diluted earnings per common share	$	0.66			$	0.75			$	(0.56	)		$	0.81			$	0.81			$	0.85			$	2.12
Dividends paid or accrued per common share	$	0.27			$	0.26			$	0.26			$	0.26			$	0.26			$	0.79			$	0.76
Effective tax rate		22.03	%			21.09	%			20.94	%			20.41	%			21.20	%			21.92	%			21.04	%

Bryn Mawr Bank Corporation
Tax-Equivalent Net Interest Margin (unaudited)
(dollars in thousands)
		For the Three Months Ended																																									For the Nine Months Ended
		September 30, 2020								June 30, 2020								March 31, 2020								December 31, 2019								September 30, 2019									September 30, 2020								September 30, 2019
		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		$	336,225		$	85		0.10	%	$	195,966		$	37		0.08	%	$	50,330		$	111		0.89	%	$	66,060		$	195		1.17	%	$	48,597		$	143		1.17	%		$	194,652		$	233		0.16	%	$	39,785		$	348		1.17	%
Investment securities - available for sale:
Taxable			550,199			2,562		1.85	%		516,823			2,775		2.16	%		516,244			3,065		2.39	%		566,359			3,334		2.34	%		594,975			3,765		2.51	%			527,837			8,402		2.13	%		566,742			10,528		2.48	%
Tax-exempt			3,690			23		2.48	%		4,572			26		2.29	%		4,909			28		2.29	%		5,844			33		2.24	%		6,594			36		2.17	%			4,388			77		2.34	%		7,961			134		2.25	%
Total investment securities - available for sale			553,889			2,585		1.86	%		521,395			2,801		2.16	%		521,153			3,093		2.39	%		572,203			3,367		2.33	%		601,569			3,801		2.51	%			532,225			8,479		2.13	%		574,703			10,662		2.48	%
Investment securities - held to maturity			12,248			57		1.85	%		13,126			73		2.24	%		13,195			87		2.65	%		12,756			84		2.61	%		12,360			80		2.57	%			12,854			217		2.26	%		10,540			218		2.77	%
Investment securities - trading			7,957			21		1.05	%		7,800			24		1.24	%		8,528			25		1.18	%		8,330			99		4.72	%		8,407			27		1.27	%			8,095			70		1.16	%		8,206			73		1.19	%
Loans and leases *			3,701,495			36,901		3.97	%		3,940,032			40,779		4.16	%		3,738,386			42,898		4.62	%		3,598,609			43,326		4.78	%		3,532,923			45,642		5.13	%			3,792,969			120,578		4.25	%		3,511,829			135,503		5.16	%
Total interest-earning assets			4,611,814			39,649		3.42	%		4,678,319			43,714		3.76	%		4,331,592			46,214		4.29	%		4,257,958			47,071		4.39	%		4,203,856			49,693		4.69	%			4,540,795			129,577		3.81	%		4,145,063			146,804		4.74	%
Cash and due from banks			16,557								16,263								12,479								9,829								12,890									15,145								13,671
Less: allowance for loan and lease losses			(55,285	)							(54,113	)							(25,786	)							(21,124	)							(21,438	)								(45,099	)							(20,729	)
Other assets			584,502								585,605								526,633								528,744								564,766									565,649								515,059
Total assets		$	5,157,588							$	5,226,074							$	4,844,918							$	4,775,407							$	4,760,074								$	5,076,490							$	4,653,064
Liabilities:
Interest-bearing deposits:
Savings, NOW and market rate deposits		$	2,282,591		$	1,042		0.18	%	$	2,313,150		$	2,341		0.41	%	$	2,197,279		$	4,981		0.91	%	$	2,149,623		$	5,659		1.04	%	$	1,996,181		$	5,445		1.08	%		$	2,264,407		$	8,364		0.49	%	$	1,908,405		$	14,249		1.00	%
Wholesale deposits			223,527			465		0.83	%		245,052			486		0.80	%		253,322			977		1.55	%		214,229			1,024		1.90	%		299,309			1,729		2.29	%			240,571			1,928		1.07	%		329,103			5,884		2.39	%
Retail time deposits			385,534			1,460		1.51	%		410,911			1,649		1.61	%		403,111			1,679		1.68	%		435,198			1,991		1.82	%		480,736			2,336		1.93	%			399,799			4,788		1.60	%		511,290			7,129		1.86	%
Total interest-bearing deposits			2,891,652			2,967		0.41	%		2,969,113			4,476		0.61	%		2,853,712			7,637		1.08	%		2,799,050			8,674		1.23	%		2,776,226			9,510		1.36	%			2,904,777			15,080		0.69	%		2,748,798			27,262		1.33	%
Borrowings:
Short-term borrowings			29,913			8		0.11	%		136,816			232		0.68	%		140,585			453		1.30	%		121,612			555		1.81	%		169,985			937		2.19	%			102,173			693		0.91	%		132,100			2,237		2.26	%
Long-term FHLB advances			44,849			234		2.08	%		46,161			155		1.35	%		47,335			244		2.07	%		53,443			279		2.07	%		45,698			243		2.11	%			46,110			633		1.83	%		51,125			790		2.07	%
Subordinated notes			98,815			1,094		4.40	%		98,770			1,144		4.66	%		98,725			1,145		4.66	%		98,681			1,144		4.60	%		98,634			1,145		4.61	%			98,770			3,383		4.58	%		98,588			3,434		4.66	%
Jr. subordinated debt			21,859			207		3.77	%		21,814			229		4.22	%		21,768			295		5.45	%		21,726			323		5.90	%		21,680			340		6.22	%			21,814			731		4.48	%		21,638			1,050		6.49	%
Total borrowings			195,436			1,543		3.14	%		303,561			1,760		2.33	%		308,413			2,137		2.79	%		295,462			2,301		3.09	%		335,997			2,665		3.15	%			268,867			5,440		2.70	%		303,451			7,511		3.31	%
Total interest-bearing liabilities			3,087,088			4,510		0.58	%		3,272,674			6,236		0.77	%		3,162,125			9,774		1.24	%		3,094,512			10,975		1.41	%		3,112,223			12,175		1.55	%			3,173,644			20,520		0.86	%		3,052,249			34,773		1.52	%
Noninterest-bearing deposits			1,220,570								1,126,139								894,264								915,128								903,314									1,080,837								895,111
Other liabilities			240,737								226,698								173,519								159,259								149,226									213,750								122,665
Total noninterest-bearing liabilities			1,461,307								1,352,837								1,067,783								1,074,387								1,052,540									1,294,587								1,017,776
Total liabilities			4,548,395								4,625,511								4,229,908								4,168,899								4,164,763									4,468,231								4,070,025
Shareholders' equity			609,193								600,563								615,010								606,508								595,311									608,259								583,039
Total liabilities and shareholders' equity		$	5,157,588							$	5,226,074							$	4,844,918							$	4,775,407							$	4,760,074								$	5,076,490							$	4,653,064
Net interest spread								2.84	%							2.99	%							3.05	%							2.98	%							3.14	%								2.95	%							3.22	%
Effect of noninterest-bearing sources								0.19	%							0.23	%							0.33	%							0.38	%							0.40	%								0.26	%							0.39	%
Tax-equivalent net interest margin					$	35,139		3.03	%				$	37,478		3.22	%				$	36,440		3.38	%				$	36,096		3.36	%				$	37,518		3.54	%					$	109,057		3.21	%				$	112,031		3.61	%
Tax-equivalent adjustment					$	107		0.01	%				$	93		0.01	%				$	107		0.01	%				$	111		0.01	%				$	120		0.01	%					$	307		0.01	%				$	375		0.01	%
Supplemental Information Regarding Accretion of Fair Value Marks
		Interest			Increase (Decrease)			Effect on Yield or Rate					Increase (Decrease)			Effect on Yield or Rate					Increase (Decrease)			Effect on Yield or Rate					Increase (Decrease)			Effect on Yield or Rate					Increase (Decrease)			Effect on Yield or Rate						Increase (Decrease)			Effect on Yield or Rate					Increase (Decrease)			Effect on Yield or Rate
Loans and leases		Income			$	784		0.08	%				$	1,017		0.10	%				$	910		0.10	%				$	1,027		0.11	%				$	1,501		0.17	%					$	2,711		0.10	%				$	4,691		0.18	%
Retail time deposits		Expense			$	(96	)	-0.10	%				$	(103	)	-0.10	%				$	(118	)	-0.12	%				$	(134	)	-0.12	%				$	(151	)	-0.12	%						(317	)	-0.11	%					(544	)	-0.14	%
Long-term FHLB advances		Expense			$	34		0.30	%				$	35		0.30	%				$	34		0.29	%				$	34		0.25	%				$	34		0.30	%						103		0.30	%					101		0.26	%
Jr. subordinated debt		Expense			$	46		0.84	%				$	45		0.83	%				$	45		0.83	%				$	44		0.80	%				$	44		0.81	%						136		0.83	%					129		0.80	%
Net interest income from fair value marks					$	800							$	1,040							$	949							$	1,083							$	1,574								$	2,789							$	5,005
Purchase accounting effect on tax-equivalent margin								0.07	%							0.09	%							0.09	%							0.10	%							0.15	%								0.08	%							0.16	%
* Average loans and leases include portfolio loans and leases, and loans held for sale. Non-accrual loans are also included in the average loan and leases balances.

Bryn Mawr Bank Corporation
Appendix - Non-GAAP to GAAP Reconciliations and Calculation of Non-GAAP Performance Measures (unaudited)
(dollars in thousands, except per share data)
Statement on Non-GAAP Measures: The Corporation believes the presentation of the following non-GAAP financial measures provides useful supplemental information that is essential to an investor’s proper understanding of the results of operations and financial condition of the Corporation. Management uses non-GAAP financial measures in its analysis of the Corporation’s performance. These non-GAAP measures should not be viewed as substitutes for the financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.
	As of or For the Three Months Ended																				As of or For the Nine Months Ended
	September 30, 2020				June 30, 2020				March 31, 2020				December 31, 2019				September 30, 2019				September 30, 2020				September 30, 2019
Reconciliation of Net Income to Net Income (core):
Net income (loss) attributable to BMBC (a GAAP measure)	$	13,164			$	15,035			$	(11,163	)		$	16,384			$	16,360			$	17,036			$	42,822
Less: Tax-effected non-core noninterest income:
Gain on sale of PPP loans		-				(1,905	)			-				-				-				(1,905	)			-
BMT Investment Advisers wind-down costs		-				1,744				-				-				-				1,744				-
Add: Tax-effected non-core noninterest expense items:
Voluntary years of service incentive program expenses		-				-				-				-				-				-				3,553
BMT Investment Advisers wind-down costs		-				100				-				-				-				100				-
Severance associated with staff reduction		-				425				-				-				-				425				-
Net income (loss) (core) (a non-GAAP measure)	$	13,164			$	15,399			$	(11,163	)		$	16,384			$	16,360			$	17,400			$	46,375
Calculation of Basic and Diluted Earnings per Common Share (core):
Weighted average common shares outstanding		19,945,634				19,926,737				20,053,159				20,124,553				20,132,117				19,975,069				20,148,289
Dilutive common shares		75,983				81,482				-				88,455				76,513				87,039				88,042
Weighted average diluted shares		20,021,617				20,008,219				20,053,159				20,213,008				20,208,630				20,062,108				20,236,331
Basic earnings per common share (core) (a non-GAAP measure)	$	0.66			$	0.77			$	(0.56	)		$	0.81			$	0.81			$	0.87			$	2.30
Diluted earnings per common share (core) (a non-GAAP measure)	$	0.66			$	0.77			$	(0.56	)		$	0.81			$	0.81			$	0.87			$	2.29
Calculation of Return on Average Tangible Equity:
Net income (loss) attributable to BMBC (a GAAP measure)	$	13,164			$	15,035			$	(11,163	)		$	16,384			$	16,360			$	17,036			$	42,822
Add: Tax-effected amortization and impairment of intangible assets		687				719				725				753				754				2,131				2,250
Net tangible income (numerator)	$	13,851			$	15,754			$	(10,438	)		$	17,137			$	17,114			$	19,167			$	45,072
Average shareholders' equity	$	609,193			$	600,563			$	615,010			$	606,508			$	595,311			$	608,259			$	583,039
Less: Average Noncontrolling interest		739				696				695				694				693				710				689
Less: Average goodwill and intangible assets		(200,931	)			(201,823	)			(202,760	)			(203,663	)			(204,637	)			(201,835	)			(205,641	)
Net average tangible equity (denominator)	$	409,001			$	399,436			$	412,945			$	403,539			$	391,367			$	407,134			$	378,087
Return on tangible equity (a non-GAAP measure)		13.47	%			15.86	%			-10.17	%			16.85	%			17.35	%			6.29	%			15.94	%
Calculation of Return on Average Tangible Equity (core):
Net income (loss) (core) (a non-GAAP measure)	$	13,164			$	15,399			$	(11,163	)		$	16,384			$	16,360			$	17,400			$	46,375
Add: Tax-effected amortization and impairment of intangible assets		687				719				725				753				754				2,131				2,250
Net tangible income (loss) (core) (numerator)	$	13,851			$	16,118			$	(10,438	)		$	17,137			$	17,114			$	19,531			$	48,625
Average shareholders' equity	$	609,193			$	600,563			$	615,010			$	606,508			$	595,311			$	608,259			$	583,039
Less: Average Noncontrolling interest		739				696				695				694				693				710				689
Less: Average goodwill and intangible assets		(200,931	)			(201,823	)			(202,760	)			(203,663	)			(204,637	)			(201,835	)			(205,641	)
Net average tangible equity (denominator)	$	409,001			$	399,436			$	412,945			$	403,539			$	391,367			$	407,134			$	378,087
Return on tangible equity (core) (a non-GAAP measure)		13.47	%			16.23	%			-10.17	%			16.85	%			17.35	%			6.41	%			17.19	%
Calculation of Tangible Equity Ratio (BMBC):
Total shareholders' equity	$	612,617			$	603,674			$	593,179			$	612,227			$	600,935
Less: Noncontrolling interest		767				727				695				695				694
Less: Goodwill and intangible assets		(200,445	)			(201,315	)			(202,225	)			(203,143	)			(204,096	)
Net tangible equity (numerator)	$	412,939			$	403,086			$	391,649			$	409,779			$	397,533
Total assets	$	5,046,939			$	5,271,311			$	4,923,033			$	5,263,259			$	4,828,641
Less: Goodwill and intangible assets		(200,445	)			(201,315	)			(202,225	)			(203,143	)			(204,096	)
Tangible assets (denominator)	$	4,846,494			$	5,069,996			$	4,720,808			$	5,060,116			$	4,624,545
Tangible equity ratio (BMBC)(1)		8.52	%			7.95	%			8.30	%			8.10	%			8.60	%
Calculation of Tangible Equity Ratio (BMTC):
Total shareholders' equity	$	652,932			$	639,711			$	624,959			$	624,030			$	641,565
Less: Noncontrolling interest		767				727				695				695				694
Less: Goodwill and intangible assets		(200,200	)			(201,069	)			(201,979	)			(190,694	)			(191,572	)
Net tangible equity (numerator)	$	453,499			$	439,369			$	423,675			$	434,031			$	450,687
Total assets	$	5,043,099			$	5,267,536			$	4,919,004			$	5,247,649			$	4,813,704
Less: Goodwill and intangible assets		(200,200	)			(201,069	)			(201,979	)			(190,694	)			(191,572	)
Tangible assets (denominator)	$	4,842,899			$	5,066,467			$	4,717,025			$	5,056,955			$	4,622,132
Tangible equity ratio (BMTC)(1)		9.36	%			8.67	%			8.98	%			8.58	%			9.75	%
Calculation of tangible book value per common share:
Total shareholders' equity	$	612,617			$	603,674			$	593,179			$	612,227			$	600,935
Less: Noncontrolling interest		767				727				695				695				694
Less: Goodwill and intangible assets		(200,445	)			(201,315	)			(202,225	)			(203,143	)			(204,096	)
Net tangible equity (numerator)	$	412,939			$	403,086			$	391,649			$	409,779			$	397,533
Shares outstanding, end of period (denominator)		19,958,186				19,927,893				19,921,524				20,126,296				20,124,193
Tangible book value per common share (a non-GAAP measure)	$	20.69			$	20.23			$	19.66			$	20.36			$	19.75
Calculation of price / tangible book value:
Closing share price	$	24.87			$	27.66			$	28.38			$	41.24			$	36.51
Tangible book value per common share	$	20.69			$	20.23			$	19.66			$	20.36			$	19.75
Price / tangible book value (a non-GAAP measure)		120.20	%			136.73	%			144.35	%			202.55	%			184.86	%
Calculation of Return on Average Assets (core)
Return on average assets (GAAP)		1.02	%			1.16	%			-0.93	%			1.36	%			1.36	%			0.45	%			1.23	%
Effect of adjustment to GAAP net income to core net income		0.00	%			0.03	%			0.00	%			0.00	%			0.00	%			0.01	%			0.10	%
Return on average assets (core)		1.02	%			1.19	%			-0.93	%			1.36	%			1.36	%			0.46	%			1.33	%
Calculation of Return on Average Equity (core)
Return on average equity (GAAP)		8.60	%			10.07	%			-7.30	%			10.72	%			10.90	%			3.74	%			9.82	%
Effect of adjustment to GAAP net income to core net income		0.00	%			0.24	%			0.00	%			0.00	%			0.00	%			0.08	%			0.81	%
Return on average equity (core)		8.60	%			10.31	%			-7.30	%			10.72	%			10.90	%			3.82	%			10.63	%
Calculation of Tax-equivalent net interest margin adjusting for the impact of purchase accounting:
Tax-equivalent net interest margin		3.03	%			3.22	%			3.38	%			3.36	%			3.54	%			3.21	%			3.61	%
Effect of fair value marks		0.07	%			0.09	%			0.09	%			0.10	%			0.15	%			0.08	%			0.16	%
Tax-equivalent net interest margin adjusting for the impact of purchase accounting		2.96	%			3.13	%			3.29	%			3.26	%			3.39	%			3.13	%			3.45	%
(1)Capital Ratios for the current quarter are to be considered preliminary until the Call Reports are filed. The March 31, 2020, June 30, 2020, and September 30, 2020 ratios reflect the Corporation’s election of a five-year transition provision to delay for two years the full impact of CECL on regulatory capital, followed by a three-year transition period.
Calculation of Tax-equivalent net interest income adjusting for the impact of purchase accounting:
Tax-equivalent net interest income	$	35,139			$	37,478			$	36,440			$	36,096			$	37,518			$	109,057			$	112,031
Effect of fair value marks		800				1,040				949				1,083				1,574				2,789				5,005
Tax-equivalent net interest income adjusting for the impact of purchase accounting	$	34,339			$	36,438			$	35,491			$	35,013			$	35,944			$	106,268			$	107,026
Calculation of Efficiency Ratio:
Noninterest expense	$	35,657			$	34,636			$	36,418			$	36,430			$	35,173			$	106,711			$	110,085
Less: certain noninterest expense items*:
Amortization of intangibles		(870	)			(910	)			(918	)			(953	)			(954	)			(2,698	)			(2,848	)
Voluntary years of service incentive program expenses		-				-				-				-				-				-				(4,498	)
BMT Investment Advisers, Inc. wind-down costs		-				(127	)			-				-				-				(127	)			-
Severance associated with staff reduction		-				(538	)			-				-				-				(538	)			-
Noninterest expense (adjusted) (numerator)	$	34,787			$	33,061			$	35,500			$	35,477			$	34,219			$	103,348			$	102,739
Noninterest income	$	21,099			$	20,566			$	18,300			$	23,255			$	19,455			$	59,965			$	58,929
Less: non-core noninterest income items:
Gain on sale of PPP loans		-				(2,411	)			-				-				-				(2,411	)			-
BMT Investment Advisers, Inc. wind-down costs		-				2,207				-				-				-				2,207				-
Noninterest income (core)	$	21,099			$	20,362			$	18,300			$	23,255			$	19,455			$	59,761			$	58,929
Net interest income		35,032				37,385				36,333				35,985				37,398				108,750				111,656
Noninterest income (core) and net interest income (denominator)	$	56,131			$	57,747			$	54,633			$	59,240			$	56,853			$	168,511			$	170,585
Efficiency ratio		61.97	%			57.25	%			64.98	%			59.89	%			60.19	%			61.33	%			60.23	%
* 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 ACL on Loans and Leases Information Used to Calculate Non-GAAP Measures
Total ACL on loans and leases	$	56,428			$	54,974			$	54,070			$	22,602			$	20,777
Less: ACL on acquired loans and leases		3,460				3,315				3,705				76				102
ACL on originated loans and leases	$	52,968			$	51,659			$	50,365			$	22,526			$	20,675
Total ACL on loans and leases	$	56,428			$	54,974			$	54,070			$	22,602			$	20,777
Loan mark on acquired loans and leases		7,235				8,037				9,478				10,905				11,948
Total ACL on loans and leases + Loan mark	$	63,663			$	63,011			$	63,548			$	33,507			$	32,725
Total Portfolio loans and leases	$	3,676,684			$	3,722,165			$	3,767,166			$	3,689,313			$	3,540,747
Less: Originated loans and leases		3,396,068				3,422,890				3,424,601				3,320,816				3,137,769
Net acquired loans	$	280,616			$	299,275			$	342,565			$	368,497			$	402,978
Add: Loan mark on acquired loans		7,235				8,037				9,478				10,905				11,948
Gross acquired loans (excludes loan mark)	$	287,851			$	307,312			$	352,043			$	379,402			$	414,926
Originated loans and leases		3,396,068				3,422,890				3,424,601				3,320,816				3,137,769
Total Gross portfolio loans and leases	$	3,683,919			$	3,730,202			$	3,776,644			$	3,700,218			$	3,552,695