BMTC
$30.22
Bryn Mawr Bank
($.90)
(2.89%)
Earnings Details
3rd Quarter September 2020
Thursday, October 22, 2020 4:30:00 PM
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Summary

Bryn Mawr Bank (BMTC) Recent Earnings

Bryn Mawr Bank (BMTC) reported 3rd Quarter September 2020 earnings of $0.66 per share on revenue of $60.6 million. The consensus earnings estimate was $0.64 per share on revenue of $54.7 million. Revenue fell 12.2% compared to the same quarter a year ago.

Bryn Mawr Bank Corp, through Bryn Mawr Trust Company, offers personal and business banking services, consumer and commercial loans, equipment leasing, mortgages, insurance and wealth management services.

Results
Reported Earnings
$0.66
Earnings Whisper
-
Consensus Estimate
$0.64
Reported Revenue
$60.6 Mil
Revenue Estimate
$54.7 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

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&overridecdc=1&#company/transcripts?id=100154.

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 BalanceInterest Income/ ExpenseAverage Rates Earned/ PaidAverage BalanceInterest Income/ ExpenseAverage Rates Earned/ PaidAverage BalanceInterest Income/ ExpenseAverage Rates Earned/ PaidAverage BalanceInterest Income/ ExpenseAverage Rates Earned/ PaidAverage BalanceInterest Income/ ExpenseAverage Rates Earned/ Paid Average BalanceInterest Income/ ExpenseAverage Rates Earned/ PaidAverage BalanceInterest Income/ ExpenseAverage 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                    
  InterestIncrease (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     
              

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Source: Bryn Mawr Bank Corporation