BRYN MAWR, Pa., Oct. 20, 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 $9.4 million and diluted earnings per share of $0.55 for the three months ended September 30, 2016, as compared to $8.9 million, or $0.52 diluted earnings per share for the three months ended June 30, 2016 and $7.5 million, or $0.42 diluted earnings per share, for the three months ended September 30, 2015.

On a non-GAAP basis, core net income, which excludes certain non-core income and expense items, as detailed in the appendix to this earnings release, was also $9.4 million, or $0.55 diluted earnings per share for the three months ended September 30, 2016 as compared to $9.0 million, or $0.53 diluted earnings per share for the three months ended June 30, 2016 and $8.2 million, or $0.46 diluted earnings per share for the three months ended September 30, 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.

“As we progress through 2016, with the backdrop of a sluggish economy and sustained low-interest rate environment, the Bank continues to perform well,” commented Frank Leto, President and Chief Executive Officer, continuing, “Despite this challenging backdrop, loan growth was strong during the third quarter, helping to offset a lower net interest margin.” Mr. Leto added, “During the first three quarters of this year, in addition to the near ten percent growth of our loan portfolio, we also saw an increase in our wealth assets of close to 20 percent. Both of these trends signal a promising outlook for the remainder of 2016, and we hope to carry this momentum into 2017.”

Mr. Leto also noted, “In addition to these promising trends, we’re also very excited about the successes of several of the strategic initiatives we began last year. Our mortgage banking operation, which began ramping up toward the end of 2014, is now in full swing, with loan volumes up 14.9% for the first nine months of this year compared to the same period last year. Our new loan production office, located in Hershey, Pennsylvania, which has been able to leverage the wealth management relationships we’ve developed there since the 2011 Hershey merger, has seen a ten-fold increase in outstanding balances from $5.2 million as of September 30, 2015 to $52.2 million as of September 30, 2016. And lastly, our non-traditional commercial mortgage subsidiary, headquartered in Media, Pennsylvania, which began operations on October 1, 2015, is progressing well. With outstanding balances as of September 30, 2016 of $19.5 million, from clients in eleven states, we are confident that this specialized arm of the Bank will continue to flourish and produce positive results to our bottom line.”

On October 20, 2016, the Board of Directors of the Corporation declared a quarterly dividend of $0.21 per share, payable December 1, 2016 to shareholders of record as of November 2, 2016.

SIGNIFICANT ITEMS OF NOTE
Results of Operations – Third Quarter 2016 Compared to Second Quarter 2016

• Net income for the three months ended September 30, 2016 was $9.4 million, as compared to $8.9 million for the three months ended June 30, 2016. Largely accounting for the increase in net income was a $570 thousand decrease in impairment of mortgage servicing rights (“MSR”s), a $576 thousand decrease in salaries and wages, a $311 thousand increase in other operating income and a $464 thousand decrease in income tax expense. These improvements were partially offset by a $967 thousand increase in provision for loan and lease losses (the “Provision”), a $331 thousand decrease in fees for wealth management services and a $463 thousand increase in other operating expense.
   
• Net interest income for the three months ended September 30, 2016 was $26.7 million, an increase of $90 thousand from $26.6 million for the three months ended June 30, 2016. Average loans and leases for the three months ended September 30, 2016 increased by $64.3 million from the three months ended June 30, 2016, however, the tax-equivalent yield earned on loans decreased by 13 basis points over the same period.
   
• The tax-equivalent net interest margin of 3.71% for the third quarter of 2016 decreased 10 basis points from 3.81% for the second quarter of 2016. The decrease was primarily the result of a 13 basis point decrease in tax-equivalent yield earned on loans, coupled with a 3 basis point increase in tax-equivalent rate paid on deposits, partially offset by a 2 basis point decrease in rate paid on borrowings. The contribution of fair value mark accretion to the tax-equivalent net interest margin accounted for 9 basis points of the margin for the third quarter of 2016 as compared to 17 basis points for the second quarter of 2016.
   
• Non-interest income for the three months ended September 30, 2016 increased $72 thousand from the second quarter of 2016. The relatively small increase was related to increases of $311 thousand and $89 thousand in other operating income and gain on sale of loans, respectively, which were offset by a decrease of $331 thousand in fees for wealth management services. The increase in other operating income was largely related to the $237 thousand income recognized as the result of the early pay-off, in full, of a purchased credit-impaired loan which had been discounted at acquisition. The decrease in fees for wealth management services was primarily related to fees for tax services billed in the second quarter of 2016 which did not reoccur in the third quarter.
   
• Non-interest expense for the three months ended September 30, 2016 decreased $782 thousand, to $25.5 million, as compared to $26.3 million for the second quarter of 2016. The primary contributors to the decrease in noninterest expense during the third quarter were decreases of $576 thousand in salaries and wages, related to reductions in variable compensation accruals, and a decrease of $570 thousand in impairment of MSRs, whose values have stabilized since the impairment recorded in the second quarter of 2016. These decreases in noninterest expense were offset by a $463 thousand increase in other operating expenses, which was largely related to changes in value of deferred compensation liability accounts.  
   
• For the three months ended September 30, 2016, net loan and lease charge-offs totaled $704 thousand, as compared to $254 thousand for the second quarter of 2016. The Provision for the three months ended September 30, 2016 was $1.4 million, as compared to $445 thousand for the second quarter of 2016. The increased loan volume, along with the increased net charge-offs, necessitated the $967 thousand increase in Provision to bring the allowance for loan and lease losses (the “Allowance”) to the appropriate level.
   
• Income tax expense for the third quarter of 2016 decreased by $464 thousand as compared to the second quarter of 2016. The reduction in the income tax rate from 35.1% to 31.7% from the second to third quarter of 2016 was the result of the early adoption of FASB Accounting Standards Update (ASU) 2016-09, “Improvements to Employee Share-Based Payment Accounting”. ASU 2016-09 was adopted using a modified retrospective approach, in which the excess tax benefits related to the vesting of employee stock-based compensation are recorded through earnings in the 2016 period in which they occurred. Accordingly, the excess tax benefits recognized in earnings for the first, second and third quarter of 2016 were $47 thousand, $13 thousand and $385 thousand, respectively. The amounts shown in the first and second quarter income statements and balance sheets in the schedules accompanying this earnings release have been adjusted from the amounts previously reported in the earnings releases for first and second quarters of 2016. Prior to the adoption of ASU 2016-09, excess tax benefits associated with employee stock-based compensation were recorded directly to equity, as a component of additional paid-in capital (“APIC”). Accumulated excess tax benefit recorded in APIC for periods prior to 2016 has been reclassified to retained earnings as of January 1, 2016.

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

• Net income for the three months ended September 30, 2016 was $9.4 million, or $0.55 diluted earnings per share, as compared to $7.5 million, or $0.42 diluted earnings per share for the same period in 2015. Contributing to the increase in net income was a $1.9 million increase in net interest income, a $1.0 million reduction in due diligence, merger-related and merger integration costs, and a $300 thousand increase in gain on sale of loans. Partially offsetting these improvements was a $646 thousand increase in other operating expense, a $680 thousand increase in salaries and wages and a $242 thousand increase in Pennsylvania bank shares tax. In addition to the effect of the increased net income, the $0.13 increase in diluted earnings per share was also impacted by the 456,300 shares of Corporation stock repurchased between September 30, 2015 and September 30, 2016 under the stock repurchase program announced on August 6, 2015.
   
• Net interest income for the three months ended September 30, 2016 was $26.7 million, an increase of $1.9 million, or 7.6%, from $24.8 million for the same period in 2015. The increase in net interest income was primarily related to the growth in average loan balances between the periods. Average loans and leases for the three months ended September 30, 2016 increased by $285.3 million from the same period in 2015. The increase in average loan balances was offset by a 15 basis point decrease in tax-equivalent yield earned on loans and leases. The net effect of the yield decrease and volume increase on average loans and leases was a $2.3 million increase in tax-equivalent interest income on loans. Partially offsetting the increase in average loans was an $84.7 million increase in average interest-bearing deposits accompanied by a 10 basis point increase in rate paid on deposits.
   
• The tax-equivalent net interest margin of 3.71% for the three months ended September 30, 2016 was a 6 basis point increase from the same period in 2015. The primary reason for the improvement in the margin was the shift in earning assets from low-yielding interest-earning deposits with banks, to much higher yielding loans and investment securities.
   
• Non-interest income for the three months ended September 30, 2016 increased $542 thousand as compared to the same period in 2015. Contributing to this increase was a $397 thousand increase in other operating income, partially related to the $504 thousand income recognized on deferred compensation trusts, $237 thousand resulting from the pay-off, in full, of a purchased credit-impaired loan which had been recorded at a discount and a $300 thousand increase in gain on sale of loans. Partially offsetting these increases was a $179 thousand decrease in insurance revenues between periods.
   
• Non-interest expense for the three months ended September 30, 2016 increased $74 thousand, as compared to the same period in 2015. Increases in salaries and wages and other operating expenses of $680 thousand and $646 thousand, respectively, were partially offset by a decrease of $1.0 million in due diligence, merger-related and merger integration expenses. The increase in salaries and wages was related to annual salary increases, new staff additions, and increases in incentive compensation. The increase in other operating expenses was primarily related to a $576 thousand increase in the deferred compensation liability. This increase in the deferred compensation liability is offset by earnings associated with the deferred compensation trusts discussed in the non-interest income section above.
   
• The Provision for the three months ended September 30, 2016 of $1.4 million was a $212 thousand increase from the same period in 2015. Net loan and lease charge-offs for the third quarter of 2016 increased by $480 thousand from the same period in 2015.

Financial Condition – September 30, 2016 Compared to December 31, 2015

• Total portfolio loans and leases of $2.49 billion as of September 30, 2016 increased by $224.4 million, or 9.9%, from December 31, 2015. Loan growth was concentrated in the commercial mortgage, commercial and industrial, and construction categories, which increased $125.4 million, $41.0 million and $42.8 million, respectively, since December 31, 2015.
   
• The Allowance as of September 30, 2016 was $17.7 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 also calculates two non-GAAP measures: the Allowance as a percentage of originated loans and leases, which was 0.81% as of September 30, 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 1.24% as of September 30, 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 September 30, 2016 were $366.9 million, an increase of $17.9 million from December 31, 2015. Increases of $47.8 million in mortgage-related securities were partially offset by decreases of $24.9 million in U.S. government securities and $4.7 million in municipal obligations.
   
• Total assets as of September 30, 2016 were $3.17 billion, an increase of $143.1 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 $94.5 million.
   
• Wealth assets under management, administration, supervision and brokerage totaled $9.97 billion as of September 30, 2016, an increase of $1.60 billion, or 19.2%, from December 31, 2015. Despite this growth in assets, income related to these services did not grow proportionately, as a larger percentage of the portfolio was comprised of assets held in lower-yielding fixed-fee accounts. As in prior quarters, the proportion of balances in wealth accounts whose fees are tied to their asset values is decreasing relative to that of fixed-fee accounts. The growth in balances in the market-based accounts, which has resulted from solid new business development and strong account retention, was offset by the normal attrition of funds from these accounts, primarily through beneficiary spending. Additionally, much of the growth in wealth assets during the third quarter of 2016 was experienced in September and, as such, has not impacted the fee revenue line since account billings for the prospective period are based on quarter-end asset balances.
   
• Deposits of $2.48 billion as of September 30, 2016 increased $225.2 million from December 31, 2015. Noninterest-bearing deposits increased by $91.3 million, retail time deposits and savings deposits increased by $80.3 million and $41.1 million, respectively, and wholesale time deposits increased by $45.9 million. These increases were partially offset by a combined $30.4 million decrease in money market and NOW accounts.
   
• The capital ratios for the Bank and the Corporation, as of September 30, 2016, as shown in the attached tables, indicate levels well above the regulatory minimum to be considered “well capitalized.” At the Bank level, all capital ratios have increased from their June 30, 2016 levels, primarily due to increases in retained earnings, other comprehensive income and the $15.0 million capital infusion received from the Corporation in the first quarter of 2016. At the Corporation level, most capital levels remain below their December 31, 2015 levels largely due to asset growth.

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

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

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

Bryn Mawr Bank Corporation
Summary Financial Information (unaudited)
(dollars in thousands, except per share data)
	As of or For the Three Months Ended																				For the Nine Months Ended
	September 30, 2016				June 30, 2016				March 31, 2016				December 31, 2015				September 30, 2015				September 30, 2016				September 30, 2015
Consolidated Balance Sheet (selected items)
Interest-bearing deposits with banks	$	30,118			$	20,481			$	33,954			$	124,615			$	100,980
Investment securities (AFS, HTM and Trading)		373,508				371,906				369,461				352,916				344,872
Loans held for sale		11,506				11,882				7,807				8,987				8,721
Portfolio loans and leases		2,493,357				2,423,821				2,378,841				2,268,988				2,228,764
Allowance for loan and lease losses ("ALLL")		(17,744	)			(17,036	)			(16,845	)			(15,857	)			(15,935	)
Goodwill and other intangible assets		126,000				126,888				127,777				128,668				129,694
Total assets		3,174,080				3,090,090				3,058,247				3,030,997				2,952,742
Deposits - interest-bearing		1,759,862				1,720,477				1,700,550				1,626,041				1,634,237
Deposits - non-interest-bearing		718,015				689,214				643,492				626,684				605,607
Short-term borrowings		50,065				19,119				37,010				94,167				24,264
Long-term FHLB advances and other borrowings		204,772				224,802				249,832				254,863				254,893
Subordinated notes		29,518				29,505				29,491				29,479				29,466
Total liabilities		2,795,621				2,717,623				2,693,070				2,665,286				2,584,587
Shareholders' equity		378,459				372,467				365,177				365,711				368,155
Average Balance Sheet (selected items)
Interest-bearing deposits with banks	$	33,532			$	44,950			$	39,050			$	90,832			$	165,723			$	39,157			$	184,689
Investment securities (AFS, HTM and Trading)		373,616				371,153				360,957				354,239				356,028				368,594				367,302
Loans held for sale		12,887				7,844				5,481				7,531				10,527				8,752				6,936
Portfolio loans and leases		2,464,085				2,404,799				2,303,103				2,240,189				2,181,125				2,390,931				2,124,342
Total interest-earning assets		2,884,120				2,828,746				2,708,591				2,692,791				2,713,403				2,807,434				2,683,269
Goodwill and intangible assets		126,505				127,402				128,296				129,292				130,241				127,398				127,806
Total assets		3,142,019				3,089,953				2,973,148				2,959,011				2,981,308				3,068,643				2,936,953
Deposits - interest-bearing		1,729,689				1,717,252				1,633,651				1,611,574				1,644,976				1,693,663				1,644,632
Short-term borrowings		40,966				32,328				34,158				26,092				28,166				35,836				39,352
Long-term FHLB advances and other borrowings		218,920				236,248				250,015				254,880				248,606				235,002				254,810
Subordinated notes		29,509				29,496				29,482				29,471				18,190				29,496				6,130
Total interest-bearing liabilities		2,019,084				2,015,324				1,947,306				1,922,017				1,939,938				1,993,997				1,944,924
Total liabilities		2,769,065				2,723,838				2,612,276				2,593,651				2,604,704				2,701,973				2,561,258
Shareholders' equity		372,954				366,115				360,872				365,360				376,604				366,669				375,695
Income Statement
Net interest income	$	26,717			$	26,627			$	25,902			$	25,429			$	24,833			$	79,246			$	74,698
Provision for loan and lease losses		1,412				445				1,410				1,777				1,200				3,267				2,619
Noninterest income		13,892				13,820				13,208				13,668				13,350				40,920				42,292
Noninterest expense		25,477				26,259				25,051				46,951				25,403				76,787				78,814
Income tax expense (benefit)		4,346				4,810				4,328				(3,276	)			4,084				13,484				12,448
Net income (loss)		9,374				8,933				8,321				(6,355	)			7,496				26,628				23,109
Basic earnings per share		0.56				0.53				0.49				(0.37	)			0.43				1.58				1.31
Diluted earnings per share		0.55				0.52				0.49				(0.37	)			0.42				1.57				1.29
Net income (core) (1)		9,392				8,961				8,331				7,506				8,241				26,684				26,008
Basic earnings per share (core) (1)		0.56				0.53				0.49				0.44				0.47				1.58				1.48
Diluted earnings per share (core) (1)		0.55				0.53				0.49				0.44				0.46				1.57				1.45
Cash dividends paid per share		0.21				0.20				0.20				0.20				0.20				0.61				0.58
Profitability Indicators
Return on average assets		1.19	%			1.16	%			1.13	%			-0.86	%			1.01	%			1.16	%			1.05	%
Return on average equity		10.00	%			9.81	%			9.27	%			-7.00	%			8.01	%			9.70	%			8.22	%
Return on tangible equity(1)		16.06	%			16.02	%			15.39	%			-9.36	%			13.25	%			15.83	%			13.48	%
Tax-equivalent net interest margin		3.71	%			3.81	%			3.87	%			3.77	%			3.65	%			3.79	%			3.75	%
Efficiency ratio(1)		60.51	%			62.66	%			61.75	%			63.09	%			60.97	%			61.64	%			60.79	%
Mortgage Banking Information
Mortgage loans originated	$	84,885			$	64,893			$	51,532			$	55,867			$	76,169			$	201,310			$	175,182
Residential mortgage loans sold - servicing retained		40,462				26,944				25,965				24,063				30,515				93,371				83,288
Residential mortgage loans sold - servicing released		10,522				5,278				2,397				7,150				10,579				18,197				22,480
Total residential mortgage loans sold	$	50,984			$	32,222			$	28,362			$	31,213			$	41,094			$	111,568			$	105,768
Residential mortgage loans serviced for others	$	618,134			$	610,418			$	605,366			$	601,939			$	601,999
Share Data
Closing share price	$	31.99			$	29.20			$	25.73			$	28.72			$	31.07
Book value per common share	$	22.08			$	21.76			$	21.48			$	21.40			$	21.94
Tangible book value per common share	$	14.94			$	14.60			$	14.13			$	13.89			$	13.89
Price / book value		144.91	%			134.19	%			119.80	%			134.19	%			141.62	%
Price / tangible book value		214.07	%			200.05	%			182.10	%			206.84	%			223.67	%
Weighted average diluted shares outstanding		17,072,358				17,027,419				16,883,364				17,129,234				17,834,298				16,994,455				17,930,420
Shares outstanding, end of period		16,893,878				16,824,564				16,801,801				17,071,523				17,166,323
Wealth Management Information:
Wealth assets under mgmt, administration, supervision and brokerage (2)	$	9,969,745			$	9,632,521			$	9,281,743			$	8,364,805			$	8,218,276
Fees for wealth management services	$	9,100			$	9,431			$	8,832			$	8,995			$	9,194
Capital Ratios
Bryn Mawr Trust Company
Tier I capital to risk weighted assets ("RWA")		11.01	%			10.94	%			10.69	%			10.12	%			11.96	%
Total (Tier II) capital to RWA		11.72	%			11.65	%			11.39	%			10.78	%			12.64	%
Tier I leverage ratio		9.17	%			9.06	%			9.15	%			8.51	%			9.75	%
Tangible equity ratio (1)		8.86	%			8.79	%			8.53	%			7.74	%			8.84	%
Common equity Tier I capital to RWA		11.01	%			10.94	%			10.69	%			10.12	%			11.96	%
Bryn Mawr Bank Corporation
Tier I capital to RWA		10.42	%			10.45	%			10.22	%			10.72	%			11.56	%
Total (Tier II) capital to RWA		12.31	%			12.35	%			12.13	%			12.61	%			13.50	%
Tier I leverage ratio		8.69	%			8.65	%			8.76	%			9.02	%			9.44	%
Tangible equity ratio (1)		8.28	%			8.29	%			8.10	%			8.17	%			8.45	%
Common equity Tier I capital to RWA		10.42	%			10.45	%			10.22	%			10.72	%			11.56	%
Asset Quality Indicators
Net loan and lease charge-offs ("NCO"s)	$	704			$	254			$	422			$	1,855			$	224			$	1,380			$	1,270
Nonperforming loans and leases ("NPL"s)	$	9,883			$	9,617			$	9,636			$	10,244			$	12,315
Other real estate owned ("OREO")		867				784				756				2,638				1,010
Total nonperforming assets ("NPA"s)	$	10,750			$	10,401			$	10,392			$	12,882			$	13,325
Nonperforming loans and leases 30 or more days past due	$	4,339			$	5,599			$	6,193			$	5,678			$	8,854
Performing loans and leases 30 to 89 days past due		2,491				3,564				6,296				5,601				4,960
Performing loans and leases 90 or more days past due		-				-				-				-				-
Total delinquent loans and leases	$	6,830			$	9,163			$	12,489			$	11,279			$	13,814
Delinquent loans and leases to total loans and leases		0.27	%			0.38	%			0.52	%			0.50	%			0.62	%
Delinquent performing loans and leases to total loans and leases		0.10	%			0.15	%			0.26	%			0.25	%			0.22	%
NCOs / average loans and leases (annualized)		0.11	%			0.04	%			0.07	%			0.33	%			0.04	%			0.08	%			0.08	%
NPLs / total portfolio loans and leases		0.40	%			0.40	%			0.41	%			0.45	%			0.55	%
NPAs / total loans and leases and OREO		0.43	%			0.43	%			0.44	%			0.56	%			0.60	%
ALLL / NPLs		179.54	%			177.14	%			174.81	%			154.79	%			129.40	%
ALLL / portfolio loans		0.71	%			0.70	%			0.71	%			0.70	%			0.71	%
ALLL on originated loans and leases / Originated loans and leases (1)		0.81	%			0.81	%			0.83	%			0.84	%			0.88	%
(Total Allowance + Loan mark) / Total Gross portfolio loans and leases (1)		1.24	%			1.30	%			1.37	%			1.44	%			1.52	%
Troubled debt restructurings ("TDR"s) included in NPLs	$	1,680			$	1,779			$	1,756			$	1,935			$	3,711
TDRs in compliance with modified terms		6,305				4,984				4,893				4,880				4,062
Total TDRs	$	7,985			$	6,763			$	6,649			$	6,815			$	7,773
(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)
	September 30, 2016				June 30, 2016				March 31, 2016				December 31, 2015				September 30, 2015
Assets
Cash and due from banks	$	18,905			$	13,710			$	15,594			$	18,452			$	17,161
Interest-bearing deposits with banks		30,118				20,481				33,954				124,615				100,980
Cash and cash equivalents		49,023				34,191				49,548				143,067				118,141
Investment securities, available for sale		366,910				365,470				365,819				348,966				341,421
Investment securities, held to maturity		2,896				2,915				-				-				-
Investment securities, trading		3,702				3,521				3,642				3,950				3,451
Loans held for sale		11,506				11,882				7,807				8,987				8,721
Portfolio loans and leases, originated		2,176,549				2,090,070				2,015,683				1,883,869				1,804,834
Portfolio loans and leases, acquired		316,808				333,751				363,158				385,119				423,930
Total portfolio loans and leases		2,493,357				2,423,821				2,378,841				2,268,988				2,228,764
Less: Allowance for losses on originated loan and leases		(17,716	)			(17,008	)			(16,817	)			(15,857	)			(15,900	)
Less: Allowance for losses on acquired loan and leases		(28	)			(28	)			(28	)			-				(35	)
Total allowance for loan and lease losses		(17,744	)			(17,036	)			(16,845	)			(15,857	)			(15,935	)
Net portfolio loans and leases		2,475,613				2,406,785				2,361,996				2,253,131				2,212,829
Premises and equipment		42,559				43,607				44,712				45,339				44,370
Accrued interest receivable		8,066				8,144				8,205				7,869				7,744
Mortgage servicing rights		4,793				4,646				5,182				5,142				5,031
Bank owned life insurance		39,055				38,836				38,616				38,371				38,157
Federal Home Loan Bank ("FHLB") stock		13,185				10,618				12,142				12,942				11,742
Goodwill		104,765				104,765				104,765				104,765				104,338
Intangible assets		21,235				22,123				23,012				23,903				25,356
Other investments		9,121				8,722				8,487				9,460				9,499
Other assets		21,651				23,865				24,314				25,105				21,942
Total assets	$	3,174,080			$	3,090,090			$	3,058,247			$	3,030,997			$	2,952,742
Liabilities
Deposits
Noninterest-bearing	$	718,015			$	689,214			$	643,492			$	626,684			$	605,607
Interest-bearing		1,759,862				1,720,477				1,700,550				1,626,041				1,634,237
Total deposits		2,477,877				2,409,691				2,344,042				2,252,725				2,239,844
Short-term borrowings		50,065				19,119				37,010				94,167				24,264
Long-term FHLB advances and other borrowings		204,772				224,802				249,832				254,863				254,893
Subordinated notes		29,518				29,505				29,491				29,479				29,466
Accrued interest payable		1,854				1,846				1,294				1,851				1,444
Other liabilities		31,535				32,660				31,401				32,201				34,676
Total liabilities		2,795,621				2,717,623				2,693,070				2,665,286				2,584,587
Shareholders' equity
Common stock		21,064				20,972				20,949				20,931				20,854
Paid-in capital in excess of par value		227,708				230,298				229,432				228,814				226,980
Less: common stock held in treasury, at cost		(66,895	)			(66,200	)			(66,140	)			(58,144	)			(53,000	)
Accumulated other comprehensive income (loss), net of tax		2,128				2,488				1,502				(412	)			(11,040	)
Retained earnings		194,454				184,909				179,434				174,522				184,361
Total shareholders equity		378,459				372,467				365,177				365,711				368,155
Total liabilities and shareholders' equity	$	3,174,080			$	3,090,090			$	3,058,247			$	3,030,997			$	2,952,742

 

Bryn Mawr Bank Corporation
Supplemental Balance Sheet Information (unaudited)
(dollars in thousands)
	Portfolio Loans and Leases as of
	September 30, 2016				June 30, 2016				March 31, 2016				December 31, 2015				September 30, 2015
Commercial mortgages	$	1,089,621			$	1,055,934			$	1,044,415			$	964,259			$	971,983
Home equity loans and lines		206,578				202,989				205,896				209,473				212,258
Residential mortgages		418,408				414,863				412,006				406,404				399,730
Construction		133,269				133,313				119,193				90,421				82,820
Total real estate loans		1,847,876				1,807,099				1,781,510				1,670,557				1,666,791
Commercial & Industrial		565,497				538,684				523,053				524,515				488,977
Consumer		23,717				21,561				21,427				22,129				22,350
Leases		56,267				56,477				52,851				51,787				50,646
Total non-real estate loans and leases		645,481				616,722				597,331				598,431				561,973
Total portfolio loans and leases	$	2,493,357			$	2,423,821			$	2,378,841			$	2,268,988			$	2,228,764
	Nonperforming Loans and Leases as of
	September 30, 2016				June 30, 2016				March 31, 2016				December 31, 2015				September 30, 2015
Commercial mortgages	$	139			$	139			$	872			$	829			$	931
Home equity loans and lines		2,827				3,011				1,953				2,027				1,661
Residential mortgages		2,845				2,909				2,923				3,212				5,249
Construction		-				-				12				34				34
Total nonperforming real estate loans		5,811				6,059				5,760				6,102				7,875
Commercial & Industrial		3,960				3,457				3,822				4,133				4,337
Consumer		2				4				-				-				2
Leases		110				97				54				9				101
Total nonperforming non-real estate loans and leases		4,072				3,558				3,876				4,142				4,440
Total nonperforming portfolio loans and leases	$	9,883			$	9,617			$	9,636			$	10,244			$	12,315
	Net Loan and Lease Charge-Offs (Recoveries) for the Three Months Ended
	September 30, 2016				June 30, 2016				March 31, 2016				December 31, 2015				September 30, 2015
Commercial mortgage	$	(4	)		$	(3	)		$	107			$	(4	)		$	-
Home equity loans and lines		375				11				71				561				(21	)
Residential		2				262				(35	)			239				11
Construction		-				(62	)			-				(1	)			(1	)
Total net charge-offs (recoveries) of real estate loans		373				208				143				795				(11	)
Commercial & Industrial		95				(44	)			25				902				38
Consumer		58				30				20				55				26
Leases		178				60				234				103				171
Total net charge-offs of non-real estate loans and leases		331				46				279				1,060				235
Total net charge-offs	$	704			$	254			$	422			$	1,855			$	224

Bryn Mawr Bank Corporation
Supplemental Balance Sheet Information (unaudited)
(dollars in thousands)
	Investment Securities Available for Sale, at Fair Value
	September 30, 2016				June 30, 2016				March 31, 2016				December 31, 2015				September 30, 2015
U.S. Treasury securities	$	101			$	102			$	102			$	101			$	102
Obligations of the U.S. Government and agencies		76,598				86,134				96,080				101,495				91,639
State & political subdivisions - tax-free		36,735				39,047				39,502				41,442				43,388
State & political subdivisions - taxable		529				532				1,093				524				742
Mortgage-backed securities		184,919				186,354				183,127				158,689				155,509
Collateralized mortgage obligations		51,344				36,702				29,106				29,799				32,953
Other debt securities		1,450				1,450				1,700				1,691				1,896
Bond mutual funds		11,847				11,774				11,725				11,810				11,798
Other investments		3,387				3,375				3,384				3,415				3,394
Total	$	366,910			$	365,470			$	365,819			$	348,966			$	341,421
	Unrealized Gain (Loss) on Investment Securities Available for Sale
	September 30, 2016				June 30, 2016				March 31, 2016				December 31, 2015				September 30, 2015
U.S. Treasury securities	$	-			$	1			$	1			$	-			$	1
Obligations of the U.S. Government and agencies		946				1,183				984				153				712
State & political subdivisions - tax-free		131				240				173				75				153
State & political subdivisions - taxable		5				8				18				(1	)			2
Mortgage-backed securities		3,801				3,958				3,026				1,267				2,591
Collateralized mortgage obligations		253				496				330				43				339
Other debt securities		-				-				-				(9	)			(4	)
Bond mutual funds		(109	)			(182	)			(231	)			(146	)			(158	)
Other investments		34				(66	)			(155	)			(192	)			(193	)
Total	$	5,061			$	5,638			$	4,146			$	1,190			$	3,443
	Deposits
	September 30, 2016				June 30, 2016				March 31, 2016				December 31, 2015				September 30, 2015
Interest-bearing deposits:
Interest-bearing checking	$	333,055			$	333,425			$	335,240			$	338,861			$	330,683
Money market		725,116				718,144				773,637				749,726				748,983
Savings		228,391				217,877				190,477				187,299				192,995
Wholesale non-maturity deposits		64,664				58,690				62,454				67,717				65,636
Wholesale time deposits		99,052				113,274				131,145				53,185				57,671
Retail time deposits		309,584				279,067				207,597				229,253				238,269
Total interest-bearing deposits		1,759,862				1,720,477				1,700,550				1,626,041				1,634,237
Noninterest-bearing deposits		718,015				689,214				643,492				626,684				605,607
Total deposits	$	2,477,877			$	2,409,691			$	2,344,042			$	2,252,725			$	2,239,844

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, 2016				June 30, 2016				March 31, 2016				December 31, 2015				September 30, 2015				September 30, 2016				September 30, 2015
Interest income:
Interest and fees on loans and leases	$	27,931			$	27,679			$	26,696			$	26,080			$	25,620			$	82,306			$	76,352
Interest on cash and cash equivalents		27				42				46				63				107				115				346
Interest on investment securities:		1,556				1,565				1,527				1,623				1,302				4,648				4,078
Total interest income		29,514				29,286				28,269				27,766				27,029				87,069				80,776
Interest expense:
Interest on deposits		1,575				1,402				1,076				1,046				1,076				4,053				3,166
Interest on short-term borrowings		34				20				17				9				8				71				39
Interest on FHLB advances and other borrowings		818				867				908				912				881				2,593				2,642
Interest on subordinated notes		370				370				366				370				231				1,106				231
Total interest expense		2,797				2,659				2,367				2,337				2,196				7,823				6,078
Net interest income		26,717				26,627				25,902				25,429				24,833				79,246				74,698
Provision for loan and lease losses (the "Provision")		1,412				445				1,410				1,777				1,200				3,267				2,619
Net interest income after Provision		25,305				26,182				24,492				23,652				23,633				75,979				72,079
Noninterest income:
Fees for wealth management services		9,100				9,431				8,832				8,995				9,194				27,363				27,899
Insurance revenue		886				845				1,276				842				1,065				3,007				2,903
Service charges on deposits		688				713				702				742				721				2,103				2,185
Loan servicing and other fees		497				539				492				502				397				1,528				1,585
Net gain on sale of loans		985				896				760				751				685				2,641				2,271
Net (loss) gain on sale of investment securities available for sale		(28	)			(43	)			(15	)			58				60				(86	)			873
Net (loss) gain on sale of other real estate owned		-				-				(76	)			33				-				(76	)			90
Dividends on FHLB and FRB stocks		277				263				214				330				138				754				1,052
Other operating income		1,487				1,176				1,023				1,415				1,090				3,686				3,434
Total noninterest income		13,892				13,820				13,208				13,668				13,350				40,920				42,292
Noninterest expense:
Salaries and wages		11,621				12,197				11,738				11,700				10,941				35,556				32,875
Employee benefits		2,420				2,436				2,485				2,268				2,590				7,341				7,937
Loss on pension termination		-				-				-				17,377				-				-				-
Occupancy and bank premises		2,349				2,367				2,488				2,474				2,557				7,204				7,831
Branch lease termination expense		-				-				-				929				-				-				-
Furniture, fixtures and equipment		1,837				1,895				1,919				2,129				1,712				5,651				4,712
Advertising		334				372				284				656				410				990				1,446
Amortization of intangible assets		888				889				891				937				953				2,668				2,890
Impairment of intangible assets		-				-				-				387				-				-				-
Impairment (recovery) of mortgage servicing rights ("MSRs")		29				599				83				(17	)			36				711				87
Due diligence, merger-related and merger integration expenses		-				-				-				1,860				1,015				-				4,810
Professional fees		937				946				813				1,010				843				2,696				2,343
Pennsylvania bank shares tax		675				640				638				(46	)			433				1,953				1,299
Information technology		881				875				1,048				874				1,053				2,804				2,569
Other operating expenses		3,506				3,043				2,664				4,413				2,860				9,213				10,015
Total noninterest expense		25,477				26,259				25,051				46,951				25,403				76,787				78,814
Income (loss) before income taxes		13,720				13,743				12,649				(9,631	)			11,580				40,112				35,557
Income tax expense (benefit)		4,346				4,810				4,328				(3,276	)			4,084				13,484				12,448
Net income (loss)	$	9,374			$	8,933			$	8,321			$	(6,355	)		$	7,496			$	26,628			$	23,109
Per share data:
Weighted average shares outstanding		16,860,727				16,812,219				16,848,202				17,129,234				17,572,421				16,840,457				17,610,353
Dilutive common shares		211,631				215,200				35,162				-				261,877				153,998				320,067
Adjusted weighted average diluted shares		17,072,358				17,027,419				16,883,364				17,129,234				17,834,298				16,994,455				17,930,420
Basic earnings (loss) per common share	$	0.56			$	0.53			$	0.49			$	(0.37	)		$	0.43			$	1.58			$	1.31
Diluted earnings (loss) per common share	$	0.55			$	0.52			$	0.49			$	(0.37	)		$	0.42			$	1.57			$	1.29
Dividend declared per share	$	0.21			$	0.20			$	0.20			$	0.20			$	0.20			$	0.61			$	0.58
Effective tax rate		31.68	%			35.09	%			34.59	%			34.02	%			35.27	%			33.62	%			35.01	%

 

 

Bryn Mawr Bank Corporation
Tax-Equivalent Net Interest Margin (unaudited)
(dollars in thousands, except per share data)
		For The Three Months Ended																																														For The Nine Months Ended
		September 30, 2016									June 30, 2016									March 31, 2016									December 31, 2015									September 30, 2015										September 30, 2016									September 30, 2015
(dollars in thousands)		Average Balance			Interest Income/ Expense			Average Rates Earned/ Paid			Average Balance			Interest Income/ Expense			Average Rates Earned/ Paid			Average Balance			Interest Income/ Expense			Average Rates Earned/ Paid			Average Balance			Interest Income/ Expense			Average Rates Earned/ Paid			Average Balance			Interest Income/ Expense			Average Rates Earned/ Paid				Average Balance			Interest Income/ Expense			Average Rates Earned/ Paid			Average Balance			Interest Income/ Expense			Average Rates Earned/ Paid
Assets:
Interest-bearing deposits with other banks		$	33,532		$	27			0.32	%	$	44,950		$	42			0.38	%	$	39,050		$	46			0.47	%	$	90,832		$	63			0.28	%	$	165,723		$	107			0.26	%		$	39,157		$	115			0.39	%	$	184,689		$	346			0.25	%
Investment securities - available for sale:
Taxable			329,293			1,423			1.72	%		325,893			1,433			1.77	%		316,353			1,397			1.78	%		307,524			1,432			1.85	%		310,582			1,172			1.50	%			323,866			4,263			1.76	%		318,510			3,691			1.55	%
Tax-exempt			37,893			189			1.98	%		39,193			187			1.92	%		40,658			191			1.89	%		43,144			195			1.79	%		41,424			186			1.78	%			39,243			567			1.93	%		37,871			546			1.93	%
Total investment securities - available for sale			367,186			1,612			1.75	%		365,086			1,620			1.78	%		357,011			1,588			1.79	%		350,668			1,627			1.84	%		352,006			1,358			1.53	%			363,109			4,830			1.78	%		356,381			4,237			1.59	%
Investment securities  - held to maturity			2,907			6			0.82	%		2,427			4			0.66	%		-			-						-			-			0.00	%		-			-							1,782			4			0.30	%		-			-
Investment securities  - trading			3,523			2			0.23	%		3,640			2			0.22	%		3,946			2			0.20	%		3,571			60			6.67	%		4,022			5			0.49	%			3,703			2			0.07	%		3,985			21			0.70	%
Loans and leases *			2,476,972			28,032			4.50	%		2,412,643			27,761			4.63	%		2,308,584			26,778			4.67	%		2,247,720			26,158			4.62	%		2,191,652			25,698			4.65	%			2,399,683			82,571			4.60	%		2,131,278			76,548			4.80	%
Total interest-earning assets			2,884,120			29,679			4.09	%		2,828,746			29,429			4.18	%		2,708,591			28,414			4.22	%		2,692,791			27,908			4.11	%		2,713,403			27,168			3.97	%			2,807,434			87,522			4.16	%		2,676,333			81,152			4.05	%
Cash and due from banks			16,228									16,413									16,501									18,005									17,160										16,380									17,484
Less: allowance for loan and lease losses			(17,257	)								(17,271	)								(16,239	)								(16,106	)								(15,066	)									(16,924	)								(14,760	)
Other assets			258,928									262,065									264,295									264,321									265,811										261,753									257,896
Total assets		$	3,142,019								$	3,089,953								$	2,973,148								$	2,959,011								$	2,981,308									$	3,068,643								$	2,936,953
Liabilities:
Interest-bearing deposits:
Savings, NOW and market rate deposits		$	1,286,404		$	641			0.20	%	$	1,273,964		$	589			0.19	%	$	1,279,630		$	569			0.18	%	$	1,260,575		$	565			0.18	%	$	1,260,529		$	584			0.18	%		$	1,280,023		$	1,799			0.19	%	$	1,245,857		$	1,753			0.19	%
Wholesale deposits			164,706			327			0.79	%		196,517			361			0.74	%		137,201			233			0.68	%		119,394			186			0.62	%		133,277			203			0.60	%			166,136			921			0.74	%		134,607			586			0.58	%
Retail time deposits			278,579			607			0.87	%		246,771			452			0.74	%		216,820			274			0.51	%		231,605			295			0.51	%		251,170			289			0.46	%			247,504			1,333			0.72	%		264,168			827			0.42	%
Total interest-bearing deposits			1,729,689			1,575			0.36	%		1,717,252			1,402			0.33	%		1,633,651			1,076			0.26	%		1,611,574			1,046			0.26	%		1,644,976			1,076			0.26	%			1,693,663			4,053			0.32	%		1,644,632			3,166			0.26	%
Borrowings:
Short-term borrowings			40,966			34			0.33	%		32,328			20			0.25	%		34,158			17			0.20	%		26,092			9			0.14	%		28,166			8			0.11	%			35,836			71			0.26	%		39,352			39			0.13	%
Long-term FHLB advances and other borrowings			218,920			818			1.49	%		236,248			867			1.48	%		250,015			908			1.46	%		254,880			912			1.42	%		248,606			881			1.41	%			235,002			2,593			1.47	%		254,810			2,642			1.39	%
Subordinated notes			29,509			370			4.99	%		29,496			370			5.05	%		29,482			366			4.99	%		29,471			370			4.98	%		18,190			231			5.04	%			29,496			1,106			5.01	%		6,130			231			5.04	%
Total borrowings			289,395			1,222			1.68	%		298,072			1,257			1.70	%		313,655			1,291			1.66	%		310,443			1,291			1.65	%		294,962			1,120			1.51	%			300,334			3,770			1.68	%		300,292			2,912			1.30	%
Total interest-bearing liabilities			2,019,084			2,797			0.55	%		2,015,324			2,659			0.53	%		1,947,306			2,367			0.49	%		1,922,017			2,337			0.48	%		1,939,938			2,196			0.45	%			1,993,997			7,823			0.52	%		1,944,924			6,078			0.42	%
Noninterest-bearing deposits			716,581									675,710									631,047									634,969									625,547										674,601									580,356
Other liabilities			33,400									32,804									33,923									36,665									39,219										33,375									35,978
Total noninterest-bearing liabilities			749,981									708,514									664,970									671,634									664,766										707,976									616,334
Total liabilities			2,769,065									2,723,838									2,612,276									2,593,651									2,604,704										2,701,973									2,561,258
Shareholders' equity			372,954									366,115									360,872									365,360									376,604										366,669									375,695
Total liabilities and shareholders' equity		$	3,142,019								$	3,089,953								$	2,973,148								$	2,959,011								$	2,981,308									$	3,068,642								$	2,936,953
Interest income to earning assets									4.09	%								4.18	%								4.22	%								4.11	%								3.97	%									4.16	%								4.05	%
Net interest spread									3.54	%								3.65	%								3.73	%								3.63	%								3.52	%									3.64	%								3.63	%
Effect of noninterest-bearing sources									0.17	%								0.16	%								0.14	%								0.14	%								0.13	%									0.15	%								0.12	%
Tax-equivalent net interest margin					$	26,882			3.71	%				$	26,770			3.81	%				$	26,047			3.87	%				$	25,571			3.77	%				$	24,972			3.65	%					$	79,699			3.79	%				$	75,074			3.75	%
Tax-equivalent adjustment					$	165			0.02	%				$	143			0.02	%				$	145			0.02	%				$	142			0.02	%				$	139			0.02	%					$	453			0.02	%				$	376			0.02	%
Supplemental Information Regarding Accretion of Fair Value Marks
					Interest Income (Expense) Effect			Effect on Yield or Rate						Interest Income (Expense) Effect			Effect on Yield or Rate						Interest Income (Expense) Effect			Effect on Yield or Rate						Interest Income (Expense) Effect			Effect on Yield or Rate						Interest Income (Expense) Effect			Effect on Yield or Rate							Interest Income (Expense) Effect			Effect on Yield or Rate						Interest Income (Expense) Effect			Effect on Yield or Rate
Loans and leases					$	578			0.09	%				$	1,076			0.18	%				$	953			0.17	%				$	707			0.12	%				$	763			0.14	%					$	2,607			0.15	%				$	3,136			0.20	%
Retail time deposits						(29	)		-0.04	%					(61	)		-0.10	%					(110	)		-0.20	%					(123	)		-0.21	%					(188	)		-0.30	%						(200	)		-0.11	%					(638	)		-0.32	%
Short-term borrowings						-			0.00	%					-			0.00	%					(12	)		-0.14	%					(35	)		-0.53	%					(35	)		-0.49	%						(12	)		-0.04	%					(104	)		-0.35	%
Long-term FHLB advances and other borrowings						(30	)		-0.05	%					(30	)		-0.05	%					(30	)		-0.05	%					(30	)		-0.05	%					(30	)		-0.05	%						(90	)		-0.05	%					(96	)		-0.05	%
Net interest income from fair value marks					$	637								$	1,167								$	1,105								$	895								$	1,016									$	2,909								$	3,974
Purchase accounting effect on tax-equivalent margin									0.09	%								0.17	%								0.16	%								0.13	%								0.15	%									0.14	%								0.20	%
* 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, 2016				June 30, 2016				March 31, 2016				December 31, 2015				September 30, 2015				September 30, 2016				September 30, 2015
Reconciliation of Net Income to Net Income (core):
Net income (loss) (a GAAP measure)	$	9,374			$	8,933			$	8,321			$	(6,355	)		$	7,496			$	26,628			$	23,109
Less: Tax-effected non-core noninterest income:
Loss (gain) on sale of investment securities available for sale		18				28				10				(38	)			(39	)			56				(567	)
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				-				3,127
Net income (core) (a non-GAAP measure)	$	9,392			$	8,961			$	8,331			$	7,506			$	8,241			$	26,684			$	26,008
Calculation of Basic and Diluted Earnings per Common Share (core):
Weighted average common shares outstanding		16,860,727				16,812,219				16,848,202				17,129,234				17,572,421				16,840,457				17,630,263
Dilutive common shares		211,631				215,200				35,162				112,783				261,877				153,998				349,163
Adjusted weighted average diluted shares		17,072,358				17,027,419				16,883,364				17,242,017				17,834,298				16,994,455				17,979,426
Basic earnings per common share (core) (a non-GAAP measure)	$	0.56			$	0.53			$	0.49			$	0.44			$	0.47			$	1.58			$	1.48
Diluted earnings per common share (core) (a non-GAAP measure)	$	0.55			$	0.53			$	0.49			$	0.44			$	0.46			$	1.57			$	1.45
Calculation of Return on Average Tangible Equity:
Net income (loss)	$	9,374			$	8,933			$	8,321			$	(6,355	)		$	7,496			$	26,628			$	23,109
Add: Tax-effected amortization and impairment of intangible assets		577				578				579				861				619				1,734				1,879
Net tangible income (numerator)	$	9,951			$	9,511			$	8,900			$	(5,494	)		$	8,115			$	28,362			$	24,988
Average shareholders' equity	$	372,954			$	366,115			$	360,872			$	365,360			$	376,604			$	366,669			$	375,695
Less: Average goodwill and intangible assets		(126,505	)			(127,402	)			(128,296	)			(129,292	)			(130,241	)			(127,398	)			(127,806	)
Net average tangible equity (denominator)	$	246,449			$	238,713			$	232,576			$	236,068			$	246,363			$	239,271			$	247,889
Return on tangible equity (a non-GAAP measure)		16.06	%			16.02	%			15.39	%			-9.23	%			13.07	%			15.83	%			13.48	%
Calculation of Tangible Equity Ratio:
Total shareholders' equity	$	378,459			$	372,467			$	365,177			$	365,711			$	368,155
Less: Goodwill and intangible assets		(126,000	)			(126,888	)			(127,777	)			(128,668	)			(129,694	)
Net tangible equity (numerator)	$	252,459			$	245,579			$	237,400			$	237,043			$	238,461
Total assets	$	3,174,080			$	3,090,090			$	3,058,247			$	3,030,997			$	2,952,742
Less: Goodwill and intangible assets		(126,000	)			(126,888	)			(127,777	)			(128,668	)			(129,694	)
Tangible assets (denominator)	$	3,048,080			$	2,963,202			$	2,930,470			$	2,902,329			$	2,823,048
Tangible equity ratio		8.28	%			8.29	%			8.10	%			8.17	%			8.45	%
Calculation of Efficiency Ratio:
Noninterest expense	$	25,477			$	26,259			$	25,051			$	46,951			$	25,403			$	76,787			$	78,814
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		(888	)			(889	)			(891	)			(937	)			(953	)			(2,668	)			(2,890	)
Impairment of intangible assets		-				-				-				(388	)			-				-				-
Due diligence, merger-related and merger integration  expenses		-				-				-				(1,860	)			(1,015	)			-				(4,810	)
Noninterest expense (adjusted) (numerator)	$	24,589			$	25,370			$	24,160			$	24,631			$	23,244			$	74,119			$	70,592
Noninterest income	$	13,892			$	13,820			$	13,208			$	13,668			$	13,350			$	40,920			$	42,292
Less: non-core noninterest income items:
Loss (gain) on sale of investment securities available for sale		28				43				15				(58	)			(60	)			86				(872	)
Noninterest income (core)	$	13,920			$	13,863			$	13,223			$	13,610			$	13,290			$	41,006			$	41,420
Net interest income		26,717				26,627				25,902				25,429				24,833				79,246				74,698
Noninterest income (core) and net interest income (denominator)	$	40,637			$	40,490			$	39,125			$	39,039			$	38,123			$	120,252			$	116,118
Efficiency ratio		60.51	%			62.66	%			61.75	%			63.09	%			60.97	%			61.64	%			60.79	%
* In calculating the Corporation's efficiency ratio, which is used by Management to identify the cost of generating each dollar of core revenue, certain non-core income and expense items as well as the amortization of intangible assets, are excluded.
Supplemental Loan and Allowance Information Used to Calculate Non-GAAP Measures
Total Allowance	$	17,744			$	17,036			$	16,845			$	15,857			$	15,935
less: Allowance on acquired loans		28				28				28				-				35
Allowance on originated loans and leases	$	17,716			$	17,008			$	16,817			$	15,857			$	15,900
Total Allowance	$	17,744			$	17,036			$	16,845			$	15,857			$	15,935
Loan mark on acquired loans		13,391				14,566				15,930				17,108				18,179
Total Allowance + Loan mark	$	31,135			$	31,602			$	32,775			$	32,965			$	34,114
Total Portfolio loans and leases	$	2,493,357			$	2,423,821			$	2,378,841			$	2,268,988			$	2,228,764
less: Originated loans and leases		2,176,549				2,090,070				2,015,683				1,883,869				1,804,835
Net acquired loans	$	316,808			$	333,751			$	363,158			$	385,119			$	423,929
add: Loan mark on acquired loans		13,391				14,566				15,930				17,108				18,179
Gross acquired loans (excludes loan mark)	$	330,199			$	348,317			$	379,088			$	402,227			$	442,108
Originated loans and leases		2,176,549				2,090,070				2,015,683				1,883,869				1,804,835
Total Gross portfolio loans and leases	$	2,506,748			$	2,438,387			$	2,394,771			$	2,286,096			$	2,246,943

 

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

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