BRYN MAWR, Pa., April 18, 2019 (GLOBE NEWSWIRE) -- Bryn Mawr Bank Corporation (NASDAQ: BMTC) (the “Corporation”), parent of The Bryn Mawr Trust Company (the “Bank”) today reported net income of $10.7 million, or $0.53 diluted earnings per share for the three months ended March 31, 2019, as compared to net income of $17.1 million, or $0.84 diluted earnings per share, for the three months ended December 31, 2018, and $15.3 million, or $0.75 diluted earnings per share, for the three months ended March 31, 2018.

On a non-GAAP basis, core net income, which excludes one-time costs associated with our voluntary Years of Service Incentive Program (the “Incentive Program”), income tax charges incurred in connection with the Tax Cuts and Jobs Act ("Tax Reform"), due diligence and merger-related expenses and other non-core income and expense items, as detailed in the appendix to this earnings release, was $14.2 million, or $0.70 diluted earnings per share, for the three months ended March 31, 2019, as compared to $17.2 million, or $0.84 diluted earnings per share, for the three months ended December 31, 2018, and $19.3 million, or $0.94 diluted earnings per share, for the three months ended March 31, 2018. Management believes the core net income measure is important in evaluating the Corporation’s performance on a more comparable basis between periods. A reconciliation of this and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release.

“We are excited with the start of 2019 as we continue to execute upon our long-term strategic goals,” commented Frank Leto, President and Chief Executive Officer, continuing, “Part of our long-term plan is ensuring BMT’s sustainability through proper succession planning. To facilitate the execution of this goal, the Board and executive management team created a one-time, voluntary Years of Service Incentive Program to reward certain long-tenured employees with enhanced benefits while providing BMT with the ability to manage a controlled transition process related to the leadership and knowledge held by individuals who chose to participate. We are proud to have been able to offer this Incentive Program, recognizing that it is our people who have laid the foundation on which we have succeeded for the past 130 years, and it is our people who will enable us to continue to grow and succeed in the future.”

Mr. Leto then continued, “Our first quarter financials remained strong with loan growth of $96 million, or 11% on an annualized basis from year-end, and wealth assets under management approaching $15 billion. Our capital markets team also continues to provide strong fee-based revenue, while credit quality remains strong with the first quarter provision expense primarily impacted by a single credit. With regard to the Incentive Program, we expect to realize long-term savings and recoup the cost of the Incentive Program in approximately three years. I am also pleased to announce that the Board of Directors has authorized a new stock repurchase program under which the Corporation can repurchase up to 1,000,000 shares from time to time at an aggregate purchase price not to exceed $45 million (the "New Repurchase Program"). The New Repurchase Program will become effective upon the completion of the Corporation’s existing 2015 stock repurchase program.”

The Board of Directors of the Corporation declared a quarterly dividend of $0.25 per share, payable June 1, 2019 to shareholders of record as of May 1, 2019.

SIGNIFICANT ITEMS OF NOTE

Results of Operations – First Quarter 2019 Compared to Fourth Quarter 2018

  • Net income for the three months ended March 31, 2019 was $10.7 million, as compared to net income of $17.1 million for the three months ended December 31, 2018. Net interest income for the three months ended March 31, 2019 was $37.6 million, a decrease of $340 thousand over the linked quarter. The provision for loan and lease losses (the “Provision”) for the three months ended March 31, 2019 increased $1.4 million as compared to the fourth quarter of 2018. Total noninterest income increased $1.2 million, total noninterest expense increased $4.9 million, and income tax expense increased $1.0 million for the three months ended March 31, 2019, as compared to the three months ended December 31, 2018. During the first quarter of 2019, the Corporation adopted the Incentive Program which offers certain benefits to eligible employees who meet the Incentive Program requirements and voluntarily exit from service with the Corporation, the Bank or one of their subsidiaries. Noninterest expense for the first quarter of 2019 included a pre-tax, non-recurring, charge of $4.5 million related to the Incentive Program.

    On a non-GAAP basis, core net income, which excludes one-time costs associated with the Incentive Program, income tax charges incurred in connection with Tax Reform, due diligence and merger-related expenses and other non-core income and expense items, as detailed in the appendix to this earnings release, was $14.2 million, or $0.70 per diluted share, for the three months ended March 31, 2019, as compared to $17.2 million or $0.84 per diluted share, for the three months ended December 31, 2018. 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.

  • Net interest income for the three months ended March 31, 2019 was $37.6 million, a decrease of $340 thousand over the linked quarter. Tax-equivalent net interest income for the three months ended March 31, 2019 was $37.8 million, a decrease of $338 thousand over the linked quarter. Tax-equivalent net interest income for the first quarter of 2019 was impacted by the accretion of purchase accounting fair value marks of $2.1 million as compared to $2.7 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 March 31, 2019 was $35.6 million, an increase of $213 thousand 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. Items contributing to the increase adjusted for purchase accounting included increases of $1.1 million and $388 thousand in tax-equivalent interest and fees earned on loans and leases and interest earned on available for sale investment securities, respectively, partially offset by an increase of $1.3 million in interest paid on deposits for the three months ended March 31, 2019 as compared to the linked quarter ended December 31, 2018.

    Tax-equivalent interest and fees earned on loans and leases for the three months ended March 31, 2019 increased $571 thousand over the linked quarter. Average loans and leases for the three months ended March 31, 2019 increased $78.3 million over the linked quarter and experienced a 6 basis point increase in tax-equivalent yield.

    Tax-equivalent interest income on available for sale investment securities increased $388 thousand for the first quarter of 2019 as compared to the linked quarter. Average available for sale investment securities increased by $16.2 million over the linked quarter and experienced a 27 basis point tax-equivalent yield increase.

    Interest expense on deposits for the three months ended March 31, 2019 increased $1.0 million over the linked quarter. Average interest-bearing deposits increased $71.8 million coupled with a 16 basis point increase in the rate paid on deposits as compared to the linked quarter. The increase in interest on deposits was related to the competitive dynamics in the markets in which we operate and certain promotional interest rates offered during the quarter.

    Interest expense on short-term borrowings for the three months ended March 31, 2019 increased $262 thousand over the linked quarter. Average short-term borrowings increased $29.2 million coupled with a 33 basis point increase in the rate paid on short-term borrowings as compared to the linked quarter.

  • The tax-equivalent net interest margin was 3.75% for the three months ended March 31, 2019 as compared to 3.79% 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 3.54% for the three months ended March 31, 2019 as compared to 3.52% 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.

  • Noninterest income of $19.3 million for the three months ended March 31, 2019 increased $1.2 million as compared to the linked quarter. Contributing to the increase were increases of $1.8 million, $852 thousand, and $213 thousand in other operating income, capital markets revenue, and insurance commissions, respectively, partially offset by decreases of $1.3 million and $625 thousand in net gain on sale of loans and fees for wealth management services, respectively. The $1.8 million increase in other operating income was primarily due to a $1.6 million increase in gains on trading securities over the linked quarter due to market fluctuations affecting the Corporation's executive and director deferred compensation plan assets.

  • Noninterest expense of $39.7 million for the three months ended March 31, 2019 increased $4.9 million as compared to $34.8 million for the fourth quarter of 2018. The increase on a linked quarter basis was primarily due to increases of $3.0 million, $1.2 million, and $1.0 million in salaries and wages, employee benefits, and other operating expenses, respectively. The linked quarter increase in salaries and wages and employee benefits was largely driven by the expenses from the Incentive Program.

  • The Provision increased $1.3 million for the three months ended March 31, 2019 to $3.7 million, as compared to $2.4 million for the fourth quarter of 2018. During the first quarter of 2019, portfolio loans and leases increased $96.4 million. In addition, net loan and lease charge-offs increased by $926 thousand for the first quarter of 2019, as compared to the previous quarter. The 2.8% increase in loan and lease volume and 57.2% increase in net charge-offs were the primary drivers for the increase in the Provision on a linked-quarter basis. The increase in net charge-offs was primarily a result of the partial charge-off of a single commercial credit.  Nonperforming loans and leases as of March 31, 2019 totaled $19.3 million, an increase of $6.5 million from December 31, 2018. The increase in nonperforming loans was largely due to real estate collateralized loans for which management performs an impairment analysis. All nonperforming loans are carried at their net realizable value.

  • The effective tax rate for the first quarter of 2019 increased significantly as compared to the fourth quarter of 2018. The increase in the effective tax rate was primarily due to a $2.6 million tax benefit recorded in the fourth quarter of 2018 for certain discrete items included on our 2017 tax return which was filed during the fourth quarter of 2018. The effective tax rate for the year ended December 31, 2018, excluding discrete income tax benefits, was 21.7%.

Results of Operations – First Quarter 2019 Compared to First Quarter 2018

  • Net income for the three months ended March 31, 2019 was $10.7 million, or $0.53 diluted earnings per share, as compared to net income of $15.3 million, or diluted earnings per share of $0.75 for the same period in 2018. Contributing to the net income decrease were increases of $3.7 million and $2.7 million in noninterest expense and the Provision, respectively.

    On a non-GAAP basis, core net income, which excludes one-time costs associated with the Incentive Program, income tax charges incurred in connection with Tax Reform, due diligence and merger-related expenses and other non-core income and expense items, as detailed in the appendix to this earnings release, was $14.2 million, or $0.70 per diluted share, for the three months ended March 31, 2019 as compared to $19.3 million, or $0.94 per diluted share, for the same period in 2018. 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.

  • Net interest income for the three months ended March 31, 2019 was $37.6 million, an increase of $208 thousand as compared to the same period in 2018. Tax-equivalent net interest income for the three months ended March 31, 2019 was $37.8 million, an increase of $256 thousand as compared to the same period in 2018. Tax-equivalent net interest income for the first quarter of 2019 was impacted by the accretion of purchase accounting fair value marks of $2.1 million as compared to $3.0 million for the same period in 2018. Excluding the effects of these purchase accounting fair value marks, the adjusted tax-equivalent net interest income for the three months ended March 31, 2019 was $35.6 million, an increase of $1.1 million as compared to the same period in 2018. 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 increase adjusted for purchase accounting included increases of $4.8 million and $812 thousand in tax-equivalent interest and fees earned on loans and leases and interest earned on available for sale investment securities, respectively, partially offset by an increase of $4.5 million in interest paid on deposits for the three months ended March 31, 2019 as compared to the same period in 2018.

    Tax-equivalent interest and fees on loans and leases increased $4.1 million for the three months ended March 31, 2019 as compared to the same period in 2018. Average loans and leases for the first quarter of 2019 increased $186.5 million from the same period in 2018 and experienced a 21 basis point increase in tax-equivalent yield.

    Average available for sale investment securities increased by $34.3 million for the three months ended March 31, 2019 as compared to the same period in 2018 and experienced a 46 basis point tax-equivalent yield increase. The increase in average balances and yield on available for sale investment securities resulted in an $812 thousand increase in tax-equivalent interest income on available for sale investment securities for the first quarter of 2019 as compared to the same period in 2018.

    Partially offsetting the effect on net interest income associated with the increase in average loans and leases and available for sale investment securities was a $4.6 million increase in interest expense on deposits for the three months ended March 31, 2019 as compared to the same period in 2018. Average interest-bearing deposits increased by $238.7 million, coupled with a 65 basis point increase in rate paid for the first quarter of 2019 as compared to the same period in 2018.

  • The tax-equivalent net interest margin was 3.75% for the three months ended March 31, 2019 as compared to 3.94% for the same period in 2018. Adjusting for the impact of the accretion of purchase accounting fair value marks, the adjusted tax-equivalent net interest margin was 3.54% and 3.62% for three months ended March 31, 2019 and 2018, respectively. A reconciliation of this and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release.

  • Noninterest income of $19.3 million for the three months ended March 31, 2019 decreased by $283 thousand as compared to the same period in 2018. Contributing to this decrease were decreases of $1.5 million, $200 thousand, and $199 thousand in other operating income, net gain on sale of other real estate owned, and net gain on sale of loans, respectively. The decrease in other operating income was primarily due to a $2.2 million decrease in recoveries of purchase accounting fair value marks resulting from pay-offs of previously acquired credit-impaired loans for the three months ended March 31, 2019 as compared to the same period in 2018. Partially offsetting the decrease in noninterest income was an increase of $1.6 million in capital markets revenue which was primarily due to increased volume of capital market transactions.

  • Noninterest expense of $39.7 million for the three months ended March 31, 2019 increased $3.7 million as compared to the same period in 2018. Contributing to the $3.7 million increase were increases of $4.9 million, $1.2 million, $572 thousand, $491 thousand, and $458 thousand in salaries and wages, other operating expenses, professional fees, furniture, fixtures and equipment expenses, and employee benefits, respectively. The increases in salaries and wages and employee benefits was largely driven by the expenses incurred in connection with the Incentive Program. Partially offsetting these increases in noninterest expense was a decrease of $4.3 million in due diligence, merger-related and merger integration expenses for the three months ended March 31, 2019 as compared to the same period in 2018.

  • The Provision increased $2.7 million for the three months ended March 31, 2019 to $3.7 million, as compared to $1.0 million for the same period in 2018. In addition, net loan and lease charge-offs increased by $1.7 million for the first quarter of 2019, as compared to the same period in 2018. This 6.6% increase in loan and lease volume and 185.1% increase in net charge-offs were the primary drivers for the increase in the Provision on a year-over-year basis. Nonperforming loans and leases as of March 31, 2019 totaled $19.3 million, an increase of $11.8 million from March 31, 2018. The increase in nonperforming loans was comprised primarily of real estate collateralized loans for which management performs impairment analyses. All nonperforming loans are carried at their net realizable value.

  • The effective tax rate for the first quarter of 2019 decreased to 20.57% as compared to 23.25% for the first quarter of 2018. The decrease was primarily due to $590 thousand of discrete tax charges included in tax expense in the first quarter of 2018 related to the re-measurement of net deferred tax assets as a result of Tax Reform, related to revised fair value adjustments associated with the merger with Royal Bancshares of Pennsylvania, Inc. in December 2017.

Financial Condition – March 31, 2019 Compared to December 31, 2018

  • Total assets as of March 31, 2019 were $4.63 billion, a decrease of $20.5 million from December 31, 2018. The decrease was primarily due to the decrease in available for sale investment securities discussed in the bullet point below, partially offset by the increase in portfolio loans and leases discussed in the bullet point below, as well as $44.0 million of operating lease right-of-use assets as of March 31, 2019 included on the balance sheet as a result of a recently adopted accounting pronouncement.

  • Available for sale investment securities as of March 31, 2019 totaled $560.0 million, a decrease of $177.5 million from December 31, 2018. The decrease was primarily related to the maturing, in January 2019, of $200.0 million short-term U.S. Treasury securities, partially offset by a $33.0 million increase in mortgage-backed securities.

  • Total portfolio loans and leases of $3.52 billion as of March 31, 2019 increased by $96.4 million from December 31, 2018, an increase of 2.8%. Increases of $89.3 million, $11.8 million, $10.1 million and $8.0 million in commercial mortgages, leases, commercial and industrial loans and residential mortgages, respectively, were offset by decreases of $21.3 million and $2.6 million in construction loans and home equity loans and lines, respectively.

  • The Allowance as of March 31, 2019 was $20.6 million, or 0.59% of portfolio loans and leases, as compared to $19.4 million, or 0.57% of portfolio loans and leases as of December 31, 2018. In addition to the ratio of Allowance to portfolio loans and leases, management also calculates two non-GAAP measures: the Allowance for originated loans and leases as a percentage of originated loans and leases, which was 0.68% as of March 31, 2019, as compared to 0.67% as of December 31, 2018, and the Allowance plus the remaining loan mark as a percentage of gross loans, which was 1.03% as of March 31, 2019, as compared to 1.08% as of December 31, 2017. A reconciliation of these and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release.

  • Deposits of $3.64 billion as of March 31, 2019 increased $38.5 million from December 31, 2018. Increases of $98.7 million and $18.5 million in money market and savings accounts, respectively, were partially offset by decreases of $40.9 million, $19.3 million, $11.2 million, and $7.3 million in wholesale deposits, noninterest-bearing demand accounts, retail time deposits and wholesale non-maturity deposits, respectively.

  • Borrowings of $299.8 million as of March 31, 2019, which include short-term borrowings, long-term FHLB advances, subordinated notes and junior subordinated debentures, decreased $128.0 million from December 31, 2018, primarily due to decreases in short-term borrowings.

  • Wealth assets under management, administration, supervision and brokerage totaled $14.74 billion as of March 31, 2019, an increase of $1.31 billion from December 31, 2018.

  • The capital ratios for the Bank and the Corporation, as of March 31, 2019, as shown in the attached tables, indicate levels above the regulatory minimum to be considered “well capitalized.”

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, our inability to successfully integrate acquired businesses, the possibility that integration 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; litigation; 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; 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.

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
 March 31,
2019
 December 31,
2018
 September 30,
2018
 June 30,
2018
 March 31,
2018
Consolidated Balance Sheet (selected items)         
Interest-bearing deposits with banks$29,449  $34,357  $35,233  $39,924  $24,589 
Investment securities578,629  753,628  545,320  547,088  550,199 
Loans held for sale2,884  1,749  4,111  4,204  5,522 
Portfolio loans and leases3,523,514  3,427,154  3,381,475  3,389,501  3,305,795 
Allowance for loan and lease losses ("ALLL")(20,616) (19,426) (18,684) (19,398) (17,662)
Goodwill and other intangible assets206,006  207,467  208,165  208,139  207,287 
Total assets4,631,993  4,652,485  4,388,442  4,394,203  4,300,376 
Deposits - interest-bearing2,755,307  2,697,468  2,522,863  2,466,529  2,452,421 
Deposits - non-interest-bearing882,310  901,619  834,363  892,386  863,118 
Short-term borrowings124,214  252,367  226,498  227,059  173,704 
Long-term FHLB advances55,407  55,374  72,841  87,808  107,784 
Subordinated notes98,571  98,526  98,482  98,491  98,448 
Jr. subordinated debentures21,622  21,580  21,538  21,497  21,456 
Total liabilities4,056,886  4,087,781  3,837,017  3,851,700  3,767,315 
Total shareholders' equity575,107  564,704  551,425  542,503  533,061 
Average Balance Sheet (selected items)         
Interest-bearing deposits with banks32,742  38,957  37,467  37,215  38,044 
Investment securities569,915  554,265  546,998  549,249  535,471 
Loans held for sale1,214  2,005  4,932  4,413  2,848 
Portfolio loans and leases3,476,525  3,397,479  3,374,767  3,348,926  3,288,364 
Total interest-earning assets4,080,396  3,992,706  3,964,164  3,939,803  3,864,727 
Goodwill and intangible assets206,716  207,893  207,880  208,039  205,529 
Total assets4,545,129  4,413,000  4,376,148  4,344,541  4,246,180 
Deposits - interest-bearing2,674,194  2,602,412  2,493,213  2,489,296  2,435,491 
Short-term borrowings157,652  128,429  208,201  205,323  172,534 
Long-term FHLB advances55,385  67,363  81,460  102,023  123,920 
Subordinated notes98,542  98,497  98,457  98,463  98,430 
Jr. subordinated debentures21,595  21,553  21,511  21,470  21,430 
Total interest-bearing liabilities3,007,368  2,918,254  2,902,842  2,916,575  2,851,805 
Total liabilities3,973,043  3,856,694  3,828,241  3,810,640  3,719,746 
Total shareholders' equity572,086  556,306  547,907  533,901  526,434 


 As of or For the Three Months Ended
 March 31,
2019
 December 31,
2018
 September 30,
2018
 June 30,
2018
 March 31,
2018
Income Statement         
Net interest income$37,647  $37,987  $36,729  $37,316  $37,439 
Provision for loan and lease losses3,736  2,362  664  3,137  1,030 
Noninterest income19,253  18,097  18,274  20,075  19,536 
Noninterest expense39,724  34,845  33,592  35,836  36,030 
Income tax expense2,764  1,746  4,066  3,723  4,630 
Net income10,676  17,131  16,681  14,695  15,285 
Net (loss) income attributable to noncontrolling interest(1) (5) (1) 7  (1)
Net income attributable to Bryn Mawr Bank Corporation10,677  17,136  16,682  14,688  15,286 
Basic earnings per share0.53  0.85  0.82  0.73  0.76 
Diluted earnings per share0.53  0.84  0.82  0.72  0.75 
Net income (core) (1)14,230  17,167  17,140  17,031  19,282 
Basic earnings per share (core) (1)0.71  0.85  0.85  0.84  0.95 
Diluted earnings per share (core) (1)0.70  0.84  0.84  0.83  0.94 
Dividends paid or accrued per share0.25  0.25  0.25  0.22  0.22 
Profitability Indicators         
Return on average assets0.95% 1.54% 1.51% 1.36% 1.46%
Return on average equity7.57% 12.22% 12.08% 11.03% 11.78%
Return on tangible equity(1)12.65% 20.37% 20.25% 18.90% 20.15%
Return on tangible equity (core)(1)16.59% 20.40% 20.78% 21.78% 25.19%
Return on average assets (core)(1)1.27% 1.54% 1.55% 1.57% 1.84%
Return on average equity (core)(1)10.09% 12.24% 12.41% 12.79% 14.85%
Tax-equivalent net interest margin3.75% 3.79% 3.69% 3.81% 3.94%
Efficiency ratio(1)60.26% 60.35% 58.75% 55.57% 54.12%
Share Data         
Closing share price$36.13  $34.40  $46.90  $46.30  $43.95 
Book value per common share$28.52  $28.01  $27.18  $26.80  $26.35 
Tangible book value per common share$18.34  $17.75  $16.95  $16.55  $16.14 
Price / book value126.68% 122.81% 172.55% 172.76% 166.79%
Price / tangible book value197.00% 193.80% 276.70% 279.74% 272.35%
Weighted average diluted shares outstanding20,271,661  20,321,283  20,438,376  20,413,578  20,450,494 
Shares outstanding, end of period20,167,729  20,163,816  20,291,416  20,242,893  20,229,896 
Wealth Management Information:         
Wealth assets under mgmt, administration, supervision and brokerage (2)$14,736,512  $13,429,544  $13,913,265  $13,404,723  $13,146,926 
Fees for wealth management services$10,392  $11,017  $10,343  $10,658  $10,308 


 As of or For the Three Months Ended
 March 31,
2019
 December 31,
2018
 September 30,
2018
 June 30,
2018
 March 31,
2018
Capital Ratios(3)         
Bryn Mawr Trust Company ("BMTC")         
Tier I capital to risk weighted assets ("RWA")11.30% 11.42% 11.55% 11.34% 11.29%
Total capital to RWA11.87% 11.99% 12.10% 11.91% 11.82%
Tier I leverage ratio9.48% 9.48% 9.47% 9.49% 9.39%
Tangible equity ratio (1)9.34% 8.95% 9.29% 9.27% 9.19%
Common equity Tier I capital to RWA11.30% 11.42% 11.55% 11.34% 11.29%
          
Bryn Mawr Bank Corporation ("BMBC")         
Tier I capital to RWA10.72% 10.92% 10.90% 10.46% 10.46%
Total capital to RWA14.00% 14.30% 14.33% 13.87% 13.93%
Tier I leverage ratio8.99% 9.06% 8.94% 8.75% 8.71%
Tangible equity ratio (1)8.35% 8.05% 8.23% 8.00% 7.98%
Common equity Tier I capital to RWA10.14% 10.32% 10.29% 9.86% 9.85%
          
Asset Quality Indicators         
Net loan and lease charge-offs ("NCO"s)$2,546  $1,620  $1,378  $1,401  $893 
          
Nonperforming loans and leases ("NPL"s)$19,283  $12,820  $8,990  $9,448  $7,533 
Other real estate owned ("OREO")84  417  529  531  300 
Total nonperforming assets ("NPA"s)$19,367  $13,237  $9,519  $9,979  $7,833 
          
Nonperforming loans and leases 30 or more days past due$8,489  $7,765  $4,906  $6,749  $5,775 
Performing loans and leases 30 to 89 days past due6,432  5,464  9,145  10,378  6,547 
Performing loans and leases 90 or more days past due         
Total delinquent loans and leases$14,921  $13,229  $14,051  $17,127  $12,322 
          
Delinquent loans and leases to total loans and leases0.42% 0.39% 0.42% 0.50% 0.37%
Delinquent performing loans and leases to total loans and leases0.18% 0.16% 0.27% 0.31% 0.20%
NCOs / average loans and leases (annualized)0.30% 0.19% 0.16% 0.17% 0.11%
NPLs / total portfolio loans and leases0.55% 0.37% 0.27% 0.28% 0.23%
NPAs / total loans and leases and OREO0.55% 0.39% 0.28% 0.29% 0.24%
NPAs / total assets0.42% 0.28% 0.22% 0.23% 0.18%
ALLL / NPLs106.91% 151.53% 207.83% 205.31% 234.46%
ALLL / portfolio loans0.59% 0.57% 0.55% 0.57% 0.53%
ALLL for originated loans and leases / Originated loans and leases (1)0.68% 0.67% 0.68% 0.71% 0.69%
(Total ALLL + Loan mark) / Total Gross portfolio loans and leases (1)1.03% 1.08% 1.28% 1.35% 1.50%
          
Troubled debt restructurings ("TDR"s) included in NPLs$4,057  $1,217  $1,208  $1,044  $1,125 
TDRs in compliance with modified terms5,149  9,745  4,316  4,117  5,235 
Total TDRs$9,206  $10,962  $5,524  $5,161  $6,360 
  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.

Bryn Mawr Bank Corporation
Detailed Balance Sheets (unaudited)
(dollars in thousands)

 March 31,
2019
 December 31,
2018
 September 30,
2018
 June 30,
2018
 March 31,
2018
Assets         
Cash and due from banks$13,656  $14,099  $10,121  $7,318  $7,804 
Interest-bearing deposits with banks29,449  34,357  35,233  39,924  24,589 
  Cash and cash equivalents43,105  48,456  45,354  47,242  32,393 
Investment securities, available for sale559,983  737,442  528,064  531,075  534,103 
Investment securities, held to maturity10,457  8,684  8,916  7,838  7,885 
Investment securities, trading8,189  7,502  8,340  8,175  8,211 
Loans held for sale2,884  1,749  4,111  4,204  5,522 
Portfolio loans and leases, originated3,032,270  2,885,251  2,752,160  2,700,815  2,564,827 
Portfolio loans and leases, acquired491,244  541,903  629,315  688,686  740,968 
  Total portfolio loans and leases3,523,514  3,427,154  3,381,475  3,389,501  3,305,795 
Less: Allowance for losses on originated loan and leases(20,519) (19,329) (18,612) (19,181) (17,570)
Less: Allowance for losses on acquired loan and leases(97) (97) (72) (217) (92)
  Total allowance for loan and lease losses(20,616) (19,426) (18,684) (19,398) (17,662)
  Net portfolio loans and leases3,502,898  3,407,728  3,362,791  3,370,103  3,288,133 
Premises and equipment67,279  65,648  63,281  54,185  54,986 
Operating lease right-of-use assets43,985         
Accrued interest receivable13,123  12,585  13,232  13,115  12,521 
Mortgage servicing rights4,910  5,047  5,328  5,511  5,706 
Bank owned life insurance58,138  57,844  57,543  57,243  56,946 
Federal Home Loan Bank ("FHLB") stock10,526  14,530  14,678  16,678  15,499 
Goodwill184,012  184,012  183,864  183,162  182,200 
Intangible assets21,994  23,455  24,301  24,977  25,087 
Other investments16,526  16,526  16,529  16,774  11,720 
Other assets83,984  61,277  52,110  53,921  59,464 
  Total assets$4,631,993  $4,652,485  $4,388,442  $4,394,203  $4,300,376 
          
Liabilities         
Deposits         
  Noninterest-bearing$882,310  $901,619  $834,363  $892,386  $863,118 
  Interest-bearing2,755,307  2,697,468  2,522,863  2,466,529  2,452,421 
  Total deposits3,637,617  3,599,087  3,357,226  3,358,915  3,315,539 
Short-term borrowings124,214  252,367  226,498  227,059  173,704 
Long-term FHLB advances55,407  55,374  72,841  87,808  107,784 
Subordinated notes98,571  98,526  98,482  98,491  98,448 
Jr. subordinated debentures21,622  21,580  21,538  21,497  21,456 
Operating lease liabilities48,224         
Accrued interest payable8,674  6,652  7,193  5,230  4,814 
Other liabilities62,557  54,195  53,239  52,700  45,570 
  Total liabilities4,056,886  4,087,781  3,837,017  3,851,700  3,767,315 
          
Shareholders' equity         
Common stock24,577  24,545  24,533  24,453  24,439 
Paid-in capital in excess of par value375,655  374,010  373,205  372,227  371,319 
Less: common stock held in treasury, at cost(76,974) (75,883) (70,437) (68,943) (68,787)
Accumulated other comprehensive (loss) income, net of tax(3,278) (7,513) (13,402) (11,191) (9,664)
Retained earnings255,813  250,230  238,204  226,634  216,438 
  Total Bryn Mawr Bank Corporation shareholders' equity575,793  565,389  552,103  543,180  533,745 
Noncontrolling interest(686) (685) (678) (677) (684)
  Total shareholders' equity575,107  564,704  551,425  542,503  533,061 
  Total liabilities and shareholders' equity$4,631,993  $4,652,485  $4,388,442  $4,394,203  $4,300,376 

Bryn Mawr Bank Corporation
Supplemental Balance Sheet Information (unaudited)
(dollars in thousands)

 Portfolio Loans and Leases as of
 March 31,
2019
 December 31,
2018
 September 30,
2018
 June 30,
2018
 March 31,
2018
Commercial mortgages$1,746,695  $1,657,436  $1,618,493  $1,613,721  $1,541,457 
Home equity loans and lines204,791  207,351  207,806  206,429  211,469 
Residential mortgages502,379  494,355  467,402  449,060  453,655 
Construction159,761  181,078  178,493  190,874  202,168 
  Total real estate loans2,613,626  2,540,220  2,472,194  2,460,084  2,408,749 
Commercial & Industrial705,701  695,584  722,999  745,306  727,231 
Consumer47,821  46,814  47,809  51,462  48,423 
Leases156,366  144,536  138,473  132,649  121,392 
  Total non-real estate loans and leases909,888  886,934  909,281  929,417  897,046 
  Total portfolio loans and leases$3,523,514  $3,427,154  $3,381,475  $3,389,501  $3,305,795 


 Nonperforming Loans and Leases as of
 March 31,
2019
 December 31,
2018
 September 30,
2018
 June 30,
2018
 March 31,
2018
Commercial mortgages$5,558  $2,568  $735  $1,011  $138 
Home equity loans and lines6,904  3,616  1,933  2,323  1,949 
Residential mortgages2,863  3,452  2,770  2,647  2,603 
Construction    291     
  Total nonperforming real estate loans15,325  9,636  5,729  5,980  4,690 
Commercial & Industrial2,965  2,101  1,782  1,585  2,499 
Consumer80  108  117     
Leases913  975  1,362  1,882  344 
  Total nonperforming non-real estate loans and leases3,958  3,184  3,261  3,468  2,843 
  Total nonperforming portfolio loans and leases$19,283  $12,820  $8,990  $9,448  $7,533 


 Net Loan and Lease Charge-Offs (Recoveries) for the Three Months Ended
 March 31,
2019
 December 31,
2018
 September 30,
2018
 June 30,
2018
 March 31,
2018
Commercial mortgage$1,373  $249  $56  $13  $(3)
Home equity loans and lines46  107    199  25 
Residential329  304  (12) (1)  
Construction(1)     (1) (1)
  Total net charge-offs of real estate loans1,747  660  44  210  21 
Commercial & Industrial391  298  304  467  283 
Consumer94  147  71  41  48 
Leases314  515  959  683  541 
  Total net charge-offs of non-real estate loans and leases799  960  1,334  1,191  872 
  Total net charge-offs$2,546  $1,620  $1,378  $1,401  $893 


 Investment Securities Available for Sale, at Fair Value
 March 31,
2019
 December 31,
2018
 September 30,
2018
 June 30,
2018
 March 31,
2018
U.S. Treasury securities$100  $200,013  $100  $100  $100 
Obligations of the U.S. Government and agencies186,746  195,855  190,453  183,256  175,107 
State & political subdivisions - tax-free8,468  11,162  15,629  17,254  19,746 
State & political subdivisions - taxable170  170  170  171  171 
Mortgage-backed securities322,913  289,890  284,421  292,563  303,902 
Collateralized mortgage obligations40,486  39,252  36,193  36,634  33,980 
Other debt securities1,100  1,100  1,098  1,097  1,097 
  Total investment securities available for sale, at fair value$559,983  $737,442  $528,064  $531,075  $534,103 


 Unrealized Gain (Loss) on Investment Securities Available for Sale
 March 31,
2019
 December 31,
2018
 September 30,
2018
 June 30,
2018
 March 31,
2018
U.S. Treasury securities$  $(13) $  $  $ 
Obligations of the U.S. Government and agencies(1,334) (2,749) (5,881) (4,594) (3,756)
State & political subdivisions - tax-free(5) (39) (90) (57) (74)
State & political subdivisions - taxable  (1) (1) (1) (1)
Mortgage-backed securities(696) (4,186) (7,584) (6,141) (5,169)
Collateralized mortgage obligations(510) (898) (1,618) (1,443) (1,322)
Other debt securities    (2) (3) (3)
  Total unrealized losses on investment securities available for sale$(2,545) $(7,886) $(15,176) $(12,239) $(10,325)


 Deposits
 March 31,
2019
 December 31,
2018
 September 30,
2018
 June 30,
2018
 March 31,
2018
Interest-bearing deposits:         
  Interest-bearing demand$664,683  $664,749  $578,243  $617,258  $529,478 
  Money market961,348  862,644  812,027  814,530  856,072 
  Savings265,613  247,081  286,266  291,858  308,925 
  Retail time deposits531,522  542,702  561,123  536,287  523,138 
  Wholesale non-maturity deposits47,744  55,031  24,040  36,826  63,449 
  Wholesale time deposits284,397  325,261  261,164  169,770  171,359 
  Total interest-bearing deposits2,755,307  2,697,468  2,522,863  2,466,529  2,452,421 
  Noninterest-bearing deposits882,310  901,619  834,363  892,386  863,118 
  Total deposits$3,637,617  $3,599,087  $3,357,226  $3,358,915  $3,315,539 

Bryn Mawr Bank Corporation
Detailed Income Statements (unaudited)
(dollars in thousands, except per share data)

 For the Three Months Ended
 March 31,
2019
 December 31,
2018
 September 30,
2018
 June 30,
2018
 March 31,
2018
Interest income:         
Interest and fees on loans and leases$44,837  $44,157  $42,103  $41,689  $40,689 
Interest on cash and cash equivalents132  83  64  64  53 
Interest on investment securities3,499  3,294  3,066  3,001  2,792 
  Total interest income48,468  47,534  45,233  44,754  43,534 
Interest expense:         
Interest on deposits8,097  7,048  5,533  4,499  3,472 
Interest on short-term borrowings943  681  1,096  985  630 
Interest on FHLB advances278  331  394  490  562 
Interest on jr. subordinated debentures358  342  337  321  288 
Interest on subordinated notes1,145  1,145  1,144  1,143  1,143 
Total interest expense10,821  9,547  8,504  7,438  6,095 
  Net interest income37,647  37,987  36,729  37,316  37,439 
Provision for loan and lease losses (the "Provision")3,736  2,362  664  3,137  1,030 
  Net interest income after Provision33,911  35,625  36,065  34,179  36,409 
Noninterest income:         
Fees for wealth management services10,392  11,017  10,343  10,658  10,308 
Insurance commissions1,672  1,459  1,754  1,902  1,693 
Capital markets revenue2,219  1,367  710  2,105  666 
Service charges on deposits808  798  726  752  713 
Loan servicing and other fees609  539  559  475  686 
Net gain on sale of loans319  1,606  631  528  518 
Net gain on sale of investment securities available for sale        7 
Net gain (loss) on sale of other real estate owned(24) 3  5  111  176 
Dividends on FHLB and FRB stocks411  305  375  510  431 
Other operating income2,847  1,003  3,171  3,034  4,338 
  Total noninterest income19,253  18,097  18,274  20,075  19,536 
Noninterest expense:         
Salaries and wages20,901  17,921  16,528  16,240  15,982 
Employee benefits4,166  2,977  3,356  2,877  3,708 
Occupancy and bank premises3,252  3,135  2,717  2,697  3,050 
Furniture, fixtures and equipment2,389  2,370  2,070  2,069  1,898 
Advertising415  540  349  369  461 
Amortization of intangible assets938  997  891  889  879 
Impairment (recovery) of mortgage servicing rights ("MSRs")17  101  (23) (1) (50)
Due diligence, merger-related and merger integration expenses    389  3,053  4,319 
Professional fees1,320  1,526  997  932  748 
Pennsylvania bank shares tax409  374  472  473  473 
Information technology1,320  1,340  1,155  1,252  1,195 
Other operating expenses4,597  3,564  4,691  4,986  3,367 
  Total noninterest expense39,724  34,845  33,592  35,836  36,030 
Income before income taxes13,440  18,877  20,747  18,418  19,915 
Income tax expense2,764  1,746  4,066  3,723  4,630 
  Net income$10,676  $17,131  $16,681  $14,695  $15,285 
Net (loss) income attributable to noncontrolling interest(1) (5) (1) 7  (1)
  Net income attributable to Bryn Mawr Bank Corporation$10,677  $17,136  $16,682  $14,688  $15,286 
          
Per share data:         
Weighted average shares outstanding20,168,498  20,225,993  20,270,706  20,238,852  20,202,969 
Dilutive common shares103,163  95,290  167,670  174,726  247,525 
Weighted average diluted shares20,271,661  20,321,283  20,438,376  20,413,578  20,450,494 
Basic earnings per common share$0.53  $0.85  $0.82  $0.73  $0.76 
Diluted earnings per common share$0.53  $0.84  $0.82  $0.72  $0.75 
Dividends paid or accrued per share$0.25  $0.25  $0.25  $0.22  $0.22 
Effective tax rate20.57% 9.25% 19.60% 20.21% 23.25%

Bryn Mawr Bank Corporation
Tax-Equivalent Net Interest Margin (unaudited)
(dollars in thousands, except per share data)

 For the Three Months Ended
 March 31, 2019December 31, 2018September 30, 2018June 30, 2018March 31, 2018
(dollars in thousands)Average
Balance
Interest
Income/
Expense
Average Rates
Earned/ Paid
Average BalanceInterest Income/ ExpenseAverage Rates
Earned/ Paid
Average BalanceInterest Income/ ExpenseAverage Rates
Earned/ Paid
Average BalanceInterest Income/ ExpenseAverage Rates
Earned/ Paid
Average BalanceInterest Income/ ExpenseAverage Rates
Earned/ Paid
                
Assets:               
Interest-bearing deposits with other banks$32,742 $132 1.64%$38,957 $83 0.85%$37,467 $64 0.68%$37,215 $64 0.69%$38,044 $53 0.56%
Investment securities - available for sale:               
Taxable543,687 3,419 2.55%524,117 3,129 2.37%514,360 2,960 2.28%514,966 2,888 2.25%498,718 2,675 2.18%
Tax-exempt9,795 168 6.96%13,184 70 2.11%16,056 83 2.05%18,215 93 2.05%20,501 100 1.98%
Total investment securities - available for sale553,482 3,587 2.63%537,301 3,199 2.36%530,416 3,043 2.28%533,181 2,981 2.24%519,219 2,775 2.17%
                
Investment securities - held to maturity8,804 11 0.51%8,761 9 0.41%8,378 5 0.24%7,866 13 0.66%7,913 12 0.62%
Investment securities - trading7,629 22 1.17%8,203 96 4.64%8,204 30 1.45%8,202 22 1.08%8,339 21 1.02%
                
Loans and leases *3,477,739 44,845 5.23%3,399,484 44,274 5.17%3,379,699 42,214 4.96%3,353,339 41,782 5.00%3,291,212 40,754 5.02%
                
Total interest-earning assets4,080,396 48,597 4.83%3,992,706 47,661 4.74%3,964,164 45,356 4.54%3,939,803 44,862 4.57%3,864,727 43,615 4.58%
                
Cash and due from banks14,414   13,962   7,587   7,153   10,698   
Less: allowance for loan and lease losses(19,887)  (18,625)  (19,467)  (18,043)  (17,628)  
Other assets470,206   424,957   423,864   415,628   388,383   
                
Total assets$4,545,129   $4,413,000   $4,376,148   $4,344,541   $4,246,180   
                
Liabilities:               
                
Interest-bearing deposits:               
Savings, NOW and market rate deposits$1,798,103 $3,764 0.85%$1,704,065 $2,883 0.67%$1,695,214 $2,425 0.57%$1,722,328 $2,073 0.48%$1,676,733 $1,479 0.36%
Wholesale deposits342,696 2,012 2.38%346,134 1,986 2.28%256,347 1,329 2.06%233,714 973 1.67%231,289 733 1.29%
Retail time deposits533,395 2,321 1.76%552,213 2,179 1.57%541,652 1,779 1.30%533,254 1,453 1.09%527,469 1,260 0.97%
Total interest-bearing deposits2,674,194 8,097 1.23%2,602,412 7,048 1.07%2,493,213 5,533 0.88%2,489,296 4,499 0.72%2,435,491 3,472 0.58%
                
Borrowings:               
Short-term borrowings157,652 943 2.43%128,429 681 2.10%208,201 1,096 2.09%205,323 985 1.92%172,534 630 1.48%
Long-term FHLB advances55,385 278 2.04%67,363 331 1.95%81,460 394 1.92%102,023 490 1.93%123,920 562 1.84%
Subordinated notes98,542 1,145 4.71%98,497 1,145 4.61%98,457 1,144 4.61%98,463 1,143 4.66%98,430 1,143 4.71%
Jr. subordinated debt21,595 358 6.72%21,553 342 6.30%21,511 337 6.22%21,470 321 6.00%21,430 288 5.45%
Total borrowings333,174 2,724 3.32%315,842 2,499 3.14%409,629 2,971 2.88%427,279 2,939 2.76%416,314 2,623 2.56%
                
Total interest-bearing liabilities3,007,368 10,821 1.46%2,918,254 9,547 1.30%2,902,842 8,504 1.16%2,916,575 7,438 1.02%2,851,805 6,095 0.87%
                
Noninterest-bearing deposits871,726   878,047   866,314   841,676   835,476   
Other liabilities93,949   60,393   59,085   52,389   32,465   
Total noninterest-bearing liabilities965,675   938,440   925,399   894,065   867,941   
                
Total liabilities3,973,043   3,856,694   3,828,241   3,810,640   3,719,746   
                
Shareholders' equity572,086   556,306   547,907   533,901   526,434   
                
Total liabilities and shareholders' equity$4,545,129   $4,413,000   $4,376,148   $4,344,541   $4,246,180   
                
Net interest spread  3.37%  3.44%  3.38%  3.55%  3.71%
Effect of noninterest-bearing sources  0.38%  0.35%  0.31%  0.26%  0.23%
                
Tax-equivalent net interest margin $37,776 3.75% $38,114 3.79% $36,852 3.69% $37,424 3.81% $37,520 3.94%
                
Tax-equivalent adjustment $129 0.01% $127 0.01% $123 0.01% $108 0.01% $81 0.01%
* 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.

Supplemental Information Regarding Accretion of Fair Value Marks

 For the Three Months Ended
 March 31, 2019December 31, 2018September 30, 2018June 30, 2018March 31, 2018
(dollars in thousands)InterestInc. /
(Dec.)
Effect on
Yield or
Rate
 Inc. /
(Dec.)
Effect on
Yield or
Rate
 Inc. /
(Dec.)
Effect on
Yield or
Rate
 Inc. /
(Dec.)
Effect on
Yield or
Rate
 Inc. /
(Dec.)
Effect on
Yield or
Rate
Loans and leasesIncome$1,997 0.23% $2,492 0.29% $1,464 0.17% $1,945 0.23% $2,702 0.33%
Retail time depositsExpense(222)(0.17)% (279)(0.20)% (311)(0.23)% (339)(0.25)% (380)(0.29)%
Long-term FHLB advancesExpense33 0.24% 34 0.20% 32 0.16% 25 0.10% 15 0.05%
Jr. subordinated debtExpense42 0.79% 42 0.77% 41 0.76% 41 0.77% 40 0.76%
Net interest income from fair value marks $2,144   $2,695   $1,702   $2,218   $3,027  
Purchase accounting effect on tax-equivalent margin  0.21%  0.27%  0.17%  0.23%  0.32%

Bryn Mawr Bank Corporation
Appendix - Non-GAAP to GAAP Reconciliations and Calculation of Non-GAAP Performance Measures (unaudited)
(dollars in thousands, except per share data)

Statement on Non-GAAP Measures: The Corporation believes the presentation of the following non-GAAP financial measures provides useful supplemental information that is essential to an investor’s proper understanding of the results of operations and financial condition of the Corporation. Management uses non-GAAP financial measures in its analysis of the Corporation’s performance. These non-GAAP measures should not be viewed as substitutes for the financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.
          
 As of or For the Three Months Ended
 March 31,
2019
 December 31,
2018
 September 30,
2018
 June 30,
2018
 March 31,
2018
Reconciliation of Net Income to Net Income (core):         
Net income attributable to BMBC (a GAAP measure)$10,677  $17,136  $16,682  $14,688  $15,286 
Less: Tax-effected non-core noninterest income:         
Gain on sale of investment securities available for sale        (6)
Add: Tax-effected non-core noninterest expense items:         
Due diligence, merger-related and merger integration expenses    307  2,412  3,412 
Voluntary years of service incentive program expenses3,553         
Add: Federal income tax expense related to re-measurement of net deferred tax asset due to tax reform legislation  31  151  (69) 590 
Net income (core) (a non-GAAP measure)$14,230  $17,167  $17,140  $17,031  $19,282 
          
Calculation of Basic and Diluted Earnings per Common Share (core):         
Weighted average common shares outstanding20,168,498  20,225,993  20,270,706  20,238,852  20,202,969 
Dilutive common shares103,163  95,290  167,670  174,726  247,525 
Weighted average diluted shares20,271,661  20,321,283  20,438,376  20,413,578  20,450,494 
Basic earnings per common share (core) (a non-GAAP measure)$0.71  $0.85  $0.85  $0.84  $0.95 
Diluted earnings per common share (core) (a non-GAAP measure)$0.70  $0.84  $0.84  $0.83  $0.94 
          
Calculation of Return on Average Tangible Equity:         
Net income attributable to BMBC (a GAAP measure)$10,677  $17,136  $16,682  $14,688  $15,286 
Add: Tax-effected amortization and impairment of intangible assets741  787  705  702  694 
Net tangible income (numerator)$11,418  $17,923  $17,387  $15,390  $15,980 
          
Average shareholders' equity$572,086  $556,306  $547,907  $533,901  $526,434 
Less: Average Noncontrolling interest685  681  678  685  683 
Less: Average goodwill and intangible assets(206,716) (207,893) (207,880) (208,039) (205,529)
Net average tangible equity (denominator)$366,055  $349,094  $340,705  $326,547  $321,588 
          
Return on tangible equity (a non-GAAP measure)12.65% 20.37% 20.25% 18.90% 20.15%
          
Calculation of Return on Average Tangible Equity (core):         
Net income (core) (a non-GAAP measure)$14,230  $17,167  $17,140  $17,031  $19,282 
Add: Tax-effected amortization and impairment of intangible assets741  787  705  702  694 
Net tangible income (core) (numerator)$14,971  $17,954  $17,845  $17,733  $19,976 
          
Average shareholders' equity$572,086  $556,306  $547,907  $533,901  $526,434 
Less: Average Noncontrolling interest685  681  678  685  683 
Less: Average goodwill and intangible assets(206,716) (207,893) (207,880) (208,039) (205,529)
Net average tangible equity (denominator)$366,055  $349,094  $340,705  $326,547  $321,588 
          
Return on tangible equity (core) (a non-GAAP measure)16.59% 20.40% 20.78% 21.78% 25.19%


Statement on Non-GAAP Measures: The Corporation believes the presentation of the following non-GAAP financial measures provides useful supplemental information that is essential to an investor’s proper understanding of the results of operations and financial condition of the Corporation. Management uses non-GAAP financial measures in its analysis of the Corporation’s performance. These non-GAAP measures should not be viewed as substitutes for the financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.
          
 As of or For the Three Months Ended
 March 31,
2019
 December 31,
2018
 September 30,
2018
 June 30,
2018
 March 31,
2018
Calculation of Tangible Equity Ratio (BMBC):         
Total shareholders' equity$575,107  $564,704  $551,425  $542,503  $533,061 
Less: Noncontrolling interest686  685  678  677  684 
Less: Goodwill and intangible assets(206,006) (207,467) (208,165) (208,139) (207,287)
Net tangible equity (numerator)$369,787  $357,922  $343,938  $335,041  $326,458 
          
Total assets$4,631,993  $4,652,485  $4,388,442  $4,394,203  $4,300,376 
Less: Goodwill and intangible assets(206,006) (207,467) (208,165) (208,139) (207,287)
Tangible assets (denominator)$4,425,987  $4,445,018  $4,180,277  $4,186,064  $4,093,089 
          
Tangible equity ratio (BMBC)(1)8.35% 8.05% 8.23% 8.00% 7.98%
          
Calculation of Tangible Equity Ratio (BMTC):         
Total shareholders' equity$605,985  $591,695  $582,698  $582,354  $569,670 
Less: Noncontrolling interest686  685  678  677  684 
Less: Goodwill and intangible assets(193,329) (194,715) (195,337) (195,245) (194,316)
Net tangible equity (numerator)$413,342  $397,665  $388,039  $387,786  $376,038 
          
Total assets$4,616,724  $4,637,481  $4,372,590  $4,378,508  $4,284,334 
Less: Goodwill and intangible assets(193,329) (194,715) (195,337) (195,245) (194,316)
Tangible assets (denominator)$4,423,395  $4,442,766  $4,177,253  $4,183,263  $4,090,018 
          
Tangible equity ratio (BMTC)(1)9.34% 8.95% 9.29% 9.27% 9.19%
          
Calculation of Return on Average Assets (core)         
Return on average assets (GAAP)0.95% 1.54% 1.51% 1.36% 1.46%
Effect of adjustment to GAAP net income to core net income0.32% % 0.04% 0.21% 0.38%
Return on average assets (core)1.27% 1.54% 1.55% 1.57% 1.84%
          
Calculation of Return on Average Equity (core)         
Return on average equity (GAAP)7.57% 12.22% 12.08% 11.03% 11.78%
Effect of adjustment to GAAP net income to core net income2.52% 0.02% 0.33% 1.76% 3.07%
Return on average equity (core)10.09% 12.24% 12.41% 12.79% 14.85%
          
Calculation of Tax-equivalent net interest margin adjusting for the impact of purchase accounting         
Tax-equivalent net interest margin3.75% 3.79% 3.69% 3.81% 3.94%
Effect of fair value marks0.21% 0.27% 0.17% 0.23% 0.32%
Tax-equivalent net interest margin adjusting for the impact of purchase accounting3.54% 3.52% 3.52% 3.58% 3.62%
  1. Capital Ratios for the current quarter are to be considered preliminary until the Call Reports are filed.
Statement on Non-GAAP Measures: The Corporation believes the presentation of the following non-GAAP financial measures provides useful supplemental information that is essential to an investor’s proper understanding of the results of operations and financial condition of the Corporation. Management uses non-GAAP financial measures in its analysis of the Corporation’s performance. These non-GAAP measures should not be viewed as substitutes for the financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.
          
 As of or For the Three Months Ended
 March 31,
2019
 December 31,
2018
 September 30,
2018
 June 30,
2018
 March 31,
2018
Calculation of Tax-equivalent net interest income adjusting for the impact of purchase accounting         
Tax-equivalent net interest income$37,776  $38,114  $36,852  $37,424  $37,520 
Effect of fair value marks2,144  2,695  1,702  2,218  3,027 
Tax-equivalent net interest income adjusting for the impact of purchase accounting$35,632  $35,419  $35,150  $35,206  $34,493 
          
Calculation of Efficiency Ratio:         
Noninterest expense$39,724  $34,845  $33,592  $35,836  $36,030 
Less: certain noninterest expense items*:         
Amortization of intangibles(938) (997) (891) (889) (879)
Due diligence, merger-related and merger integration expenses    (389) (3,053) (4,319)
Voluntary years of service incentive program expenses(4,498)        
Noninterest expense (adjusted) (numerator)$34,288  $33,848  $32,312  $31,894  $30,832 
          
Noninterest income$19,253  $18,097  $18,274  $20,075  $19,536 
Less: non-core noninterest income items:         
Gain on sale of investment securities available for sale        (7)
Noninterest income (core)$19,253  $18,097  $18,274  $20,075  $19,529 
Net interest income37,647  37,987  36,729  37,316  37,439 
Noninterest income (core) and net interest income (denominator)$56,900  $56,084  $55,003  $57,391  $56,968 
          
Efficiency ratio60.26% 60.35% 58.75% 55.57% 54.12%
          
Supplemental Loan and Allowance Information Used to Calculate Non-GAAP Measures         
Total Allowance$20,616  $19,426  $18,684  $19,398  $17,662 
Less: Allowance on acquired loans97  97  72  217  92 
Allowance on originated loans and leases$20,519  $19,329  $18,612  $19,181  $17,570 
          
Total Allowance$20,616  $19,426  $18,684  $19,398  $17,662 
Loan mark on acquired loans15,841  17,822  24,964  26,705  32,260 
Total Allowance + Loan mark$36,457  $37,248  $43,648  $46,103  $49,922 
          
Total Portfolio loans and leases$3,523,514  $3,427,154  $3,381,475  $3,389,501  $3,305,795 
Less: Originated loans and leases3,032,270  2,885,251  2,752,160  2,700,815  2,564,827 
Net acquired loans$491,244  $541,903  $629,315  $688,686  $740,968 
Add: Loan mark on acquired loans15,841  17,822  24,964  26,705  32,260 
Gross acquired loans (excludes loan mark)$507,085  $559,725  $654,279  $715,391  $773,228 
Originated loans and leases3,032,270  2,885,251  2,752,160  2,700,815  2,564,827 
Total Gross portfolio loans and leases$3,539,355  $3,444,976  $3,406,439  $3,416,206  $3,338,055 
  • 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.