Bryn Mawr Bank Corporation Reports Second Quarter Net Income of $15.0 Million


BRYN MAWR, Pa., July 20, 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 $15.0 million, or $0.75 diluted earnings per share for the three months ended June 30, 2020, as compared to a net loss of $11.2 million, or $(0.56) diluted earnings per share, for the three months ended March 31, 2020, and net income of $15.8 million, or $0.78 diluted earnings per share, for the three months ended June 30, 2019.

On a non-GAAP basis, core net income, which excludes 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, as detailed in the appendix to this earnings release, was $15.4 million, or $0.77 diluted earnings per share, for the three months ended June 30, 2020. There were no meaningful non-core income or expense items for the three months ended March 31, 2020 or June 30, 2019. 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.

“In this time of unprecedented uncertainty, I am pleased with our second quarter results. This is truly a testament to BMT’s strong foundation and focus on people, process, technology and diversification of revenue streams. The hard work and dedication our employees showed in this time of crisis deserves special recognition,” commented Frank Leto, President and Chief Executive Officer, continuing, “Our transition to remote work was seamless and will offer us future efficiencies in both occupancy and personnel expenses. We entered this pandemic in a position of strength. Management remains diligent in the execution of our heightened risk management and credit monitoring processes.”

On July 20, 2020, the Board of Directors of the Corporation declared a quarterly dividend of $0.27 per share, payable September 1, 2020 to shareholders of record as of August 3, 2020.

SIGNIFICANT ITEMS OF NOTE

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

  • Net income for the three months ended June 30, 2020 was $15.0 million, or $0.75 diluted earnings per share, as compared to a net loss of $11.2 million, or $(0.56) diluted earnings per share, for the three months ended March 31, 2020. The net loss for the three months ended March 31, 2020 was primarily due to the $32.3 million in provision for credit losses on loans and leases (the “Provision”) recorded in the first quarter of 2020 as a result of reserve builds driven by the COVID-19 pandemic. The Provision for the three months ended June 30, 2020 was $4.3 million. Other factors impacting the increase in net income included increases of $1.1 million and $4.5 million in net interest income and noninterest income, respectively, partially offset by increases of $425 thousand and $7.0 million in noninterest expense and income tax expense, respectively, for the three months ended June 30, 2020 as compared to the three months ended March 31, 2020.
     
  • Net interest income for the three months ended June 30, 2020 was $37.4 million, an increase of $1.1 million over the linked quarter. Tax-equivalent net interest income for the three months ended June 30, 2020 was $37.5 million, an increase of $1.0 million over the linked quarter. Tax-equivalent net interest income for the second quarter of 2020 was positively impacted by the accretion of purchase accounting fair value marks of $1.0 million, an increase of $91 thousand as compared to $949 thousand 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 June 30, 2020 was $36.4 million, an increase of $947 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.

    The tax-equivalent net interest margin was 3.22% for the three months ended June 30, 2020 as compared to 3.38% 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 3.13% for the three months ended June 30, 2020 as compared to 3.29% 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 increase in tax-equivalent net interest income adjusted for purchase accounting included decreases of $3.2 million and $221 thousand in interest paid on deposits and interest expense on short-term borrowings, respectively, partially offset by decreases of $2.2 million and $292 thousand in tax-equivalent interest and fees earned on loans and leases and tax-equivalent interest income on available for sale investment securities, respectively, for the three months ended June 30, 2020 as compared to the linked quarter ended March 31, 2020. These decreases were primarily due to reduced interest rates during the second quarter of 2020 as compared to the first quarter of 2020 and driven by management's active balance sheet management in this current interest rate environment.

    Interest expense on deposits for the three months ended June 30, 2020 decreased $3.2 million over the linked quarter. The decrease was primarily due to a 47 basis point decrease in the tax-equivalent rate paid on average interest-bearing deposits for the three months ended June 30, 2020 as compared to the linked quarter. 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 June 30, 2020 as compared to the linked quarter.

    Interest expense on short-term borrowings for the three months ended June 30, 2020 decreased $221 thousand over the linked quarter. The decrease was primarily due to a 62 basis point decrease in the rate paid as compared to the linked quarter coupled with a $3.8 million decrease in average short-term borrowings as compared to the linked quarter.

    Tax-equivalent interest and fees earned on loans and leases for the three months ended June 30, 2020 decreased $2.1 million as compared to the linked quarter. The decrease was primarily due to a 46 basis point decrease in the tax-equivalent yield on average loans and leases for the three months ended June 30, 2020 as compared to the linked quarter. The effect of the decrease in the tax-equivalent yield was partially offset by an increase of $201.6 million in average loans and leases for the three months ended June 30, 2020 as compared to the linked quarter. The increase in average loan and lease balances was primarily the result of the addition of $307.9 million PPP loans originated during the second quarter of 2020. The majority of these PPP loans were sold prior to quarter-end.

    Tax-equivalent interest income on available for sale investment securities for the three months ended June 30, 2020 decreased $292 thousand as compared to the linked quarter. The decrease was primarily due to a 23 basis point decrease in the tax-equivalent yield on average available for sale investment securities. The effect of the decrease in the tax-equivalent yield was partially offset by an increase of $242 thousand in average available for sale investment securities for the three months ended June 30, 2020 as compared to the linked quarter.

  • Noninterest income of $22.8 million for the three months ended June 30, 2020 represented a $4.5 million increase over the linked quarter. The increase was primarily due to increases of $2.4 million, $2.2 million, and $614 thousand in net gain on sale of loans, other operating income, and capital markets revenue, respectively, partially offset by decreases of $243 thousand, $230 thousand, and $201 thousand in service charges on deposits, insurance commissions, and dividends on the Corporation's equity stocks issued by the Federal Home Loan Bank (“FHLB”) and the Federal Reserve Bank, respectively. The increase 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. The increase in other operating income was primarily due to a $1.0 million gain on trading securities recorded in the second quarter of 2020, as compared to a $978 thousand loss on trading securities recorded in the first quarter of 2020. Trading security gains and losses are due to market fluctuations in the Corporation's trading securities held in deferred compensation trust accounts.

  • Noninterest expense of $36.8 million for the three months ended June 30, 2020 represented a $425 thousand increase over the linked quarter. Increases of $990 thousand and $207 thousand in other operating expenses and professional fees, respectively, were partially offset by decreases of $311 thousand, $279 thousand, and $205 thousand in furniture, fixtures and equipment expenses, employee benefits, and advertising expenses, respectively. The increase in other operating expenses was primarily driven by $2.3 million of other operating expenses recorded in the second quarter of 2020 associated with the wind-down of BMT Investment Advisers, as well as a $1.7 million increase in deferred compensation expense which was primarily due to market fluctuations in the first and second quarters of 2020 affecting the Corporation's deferred compensation plan liability. These increases in other operating expenses were partially offset by a decrease of $3.9 million in provision for credit losses on off-balance sheet credit exposures. During the first quarter of 2020, a $3.0 million provision for credit losses on off-balance sheet credit exposures was recorded driven by the expected adverse economic impacts of the COVID-19 pandemic.

  • The Provision of $4.3 million for the three months ended June 30, 2020 decreased $28.0 million as compared to $32.3 million for the three months ended March 31, 2020. The Provisions recorded in the first and second 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 March 31, 2020 and June 30, 2020, respectively. Net loan and lease charge-offs for the second quarter of 2020 totaled $3.4 million, a decrease of $675 thousand as compared to $4.1 million for the first quarter of 2020.

  • The effective tax rate for the second quarter of 2020 increased to 21.09% as compared to 20.94% for the first quarter of 2020.

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

  • Net income for the three months ended June 30, 2020 was $15.0 million, or $0.75 diluted earnings per share, as compared to $15.8 million, or $0.78 diluted earnings per share, for the three months ended June 30, 2019. Net interest income for the three months ended June 30, 2020 was $37.4 million, an increase of $774 thousand over the same period in 2019. The Provision for the three months ended June 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 $2.6 million, total noninterest expense increased $1.7 million, and income tax expense decreased $229 thousand for the three months ended June 30, 2020 as compared to the three months ended June 30, 2019.
     
  • Net interest income for the three months ended June 30, 2020 was $37.4 million, an increase of $774 thousand as compared to the same period in 2019. Tax-equivalent net interest income for the three months ended June 30, 2020 was $37.5 million, an increase of $741 thousand as compared to the same period in 2019. Tax-equivalent net interest income for the first quarter of 2020 was positively impacted by the accretion of purchase accounting fair value marks of $1.0 million as compared to $1.3 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 June 30, 2020 was $36.4 million, an increase of $988 thousand 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 3.22% for the three months ended June 30, 2020 as compared to 3.55% 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 3.13% and 3.43% for three months ended June 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 increase in tax-equivalent net interest income adjusted for purchase accounting included a decrease of $5.3 million in interest paid on deposits, partially offset by decreases of $3.9 million and $642 thousand in tax-equivalent interest and fees earned on loans and leases and tax-equivalent interest income on available for sale investment securities, respectively, for the three months ended June 30, 2020 as compared to the same period in 2019. These decreases were all primarily due to reduced interest rates observed during the second quarter of 2020 as compared to the same period in 2019 driven by the current interest rate environment.

    Interest expense on deposits for the three months ended June 30, 2020 decreased $5.2 million as compared to the same period in 2019. The decrease was primarily due to a 78 basis point decrease in the tax-equivalent rate paid on average interest-bearing deposits for the three months ended June 30, 2020 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 $174.3 million in average interest-bearing deposits for the three months ended June 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 June 30, 2020 decreased $4.1 million as compared to the same period in 2019. The decrease was primarily due to a 95 basis point decrease in the tax-equivalent yield on average loans and leases for the three months ended June 30, 2020 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 $415.8 million in average loans and leases for the three months ended June 30, 2020 as compared to same period in 2019.

    Tax-equivalent interest income on available for sale investment securities for the three months ended June 30, 2020 decreased $642 thousand as compared to the same period in 2019. The decrease was primarily due to a 27 basis point decrease in the tax-equivalent yield on average available for sale investment securities for the three months ended June 30, 2020 as compared to the same period in 2019 coupled with a decrease of $47.1 million in average available for sale investment securities for the three months ended June 30, 2020 as compared to the same period in 2019.

  • Noninterest income of $22.8 million for the three months ended June 30, 2020 represented a $2.6 million increase over the same period in 2019. The increase was primarily due to increases of $2.4 million and $1.5 million in net gain on sale of loans and capital markets revenue, respectively, partially offset by decreases of $394 thousand, $265 thousand, $249 thousand, and $234 thousand in insurance commissions, other operating income, service charges on deposits, and fees for wealth management services, respectively. The increase 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. The increase in capital markets revenue was primarily due to increased volume and size of interest rate swap transactions with commercial loan customers for the three months ended June 30, 2020 as compared to the same period in 2019.

  • Noninterest expense of $36.8 million for the three months ended June 30, 2020 represented a $1.7 million increase over the same period in 2019. Increases of $2.5 million, $259 thousand, and $212 thousand in other operating expenses, professional fees, and impairment of mortgage servicing rights, respectively, were partially offset by decreases of $448 thousand, $397 thousand, and $308 thousand in furniture, fixtures and equipment expenses, Pennsylvania bank shares tax, and advertising expenses, respectively. The increase in other operating expenses was primarily driven by $2.3 million of other operating expenses recorded in the second quarter of 2020 associated with the wind-down of BMT Investment Advisers, as well as a $476 thousand increase in deferred compensation expense. These increases in other operating expenses were partially offset by an $867 thousand release of reserves for credit losses on off-balance sheet credit exposures recorded in the second quarter of 2020 based on lower future line usage estimates.

  • The Provision of $4.3 million for the three months ended June 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 second 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 June 30, 2020. Net loan and lease charge-offs for the second quarter of 2020 totaled $3.4 million, an increase of $2.3 million as compared to $1.1 million for the second quarter in 2019.

  • The effective tax rate for the second quarter of 2020 decreased to 21.09% as compared to 21.18% for the second quarter of 2019.

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

  • Total assets as of June 30, 2020 were $5.27 billion, an increase of $8.1 million from December 31, 2019. Cash balances increased $410.6 million 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. Other assets increased $96.1 million primarily driven by a $96.4 million increase in the fair value of interest rate swaps. Partially offsetting these increases was a $475.4 million decrease in available for sale investment securities as discussed in the bullet point below.
     
  • Available for sale investment securities as of June 30, 2020 totaled $530.6 million, a decrease of $475.4 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  $12.1 million, $11.2 million, and $8.0 million of U.S. government and agency securities, mortgage-backed securities, and corporate bonds, respectively.
     
  • Total portfolio loans and leases of $3.72 billion as of June 30, 2020 increased by $32.9 million from December 31, 2019, an increase of 0.9%. Increases of $38.7 million, $25.3 million, $15.1 million, and $10.2 million in commercial real estate loans (nonowner-occupied), commercial and industrial loans, commercial real estate loans (owner-occupied), and construction loans, respectively, were partially offset by decreases of $29.5 million, $13.5 million, and $11.4 million in home equity lines of credit, consumer loans, and residential mortgage loans (1st liens), 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 June 30, 2020, 1,668 loans and leases in the amount of $767.1 million, approximately 20.6% of the Corporation's portfolio loans and leases, are within a deferral period under the Corporation's consumer and commercial loan and lease modification programs.

  • 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 $55.0 million as of June 30, 2020, an increase of $32.4 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 June 30, 2020 as compared to our initial adoption of CECL.

  • Deposits of $4.24 billion as of June 30, 2020 increased $401.4 million from December 31, 2019. Increases of $319.3 million, $133.0 million, and $29.2 million in noninterest bearing deposits, money market accounts, and savings accounts, respectively, were partially offset by decreases of $34.5 million and $31.4 million in interest-bearing demand accounts and wholesale non-maturity deposits, respectively. The increase in noninterest bearing deposits was primarily due to the Bank's funding of PPP loans to its depositors during the second quarter of 2020.

  • Borrowings of $194.4 million as of June 30, 2020, which include short-term borrowings, long-term FHLB advances, subordinated notes and junior subordinated debentures decreased $471.6 million from December 31, 2019. The decrease was primarily due to the maturing of $500.0 million of short-term borrowings in the first quarter of 2020, which was used to fund the purchase of $500.0 million of short-term U.S. Treasury securities included on the balance sheet as of December 31, 2019.

  • Wealth assets totaled $17.01 billion as of June 30, 2020, an increase of $464.8 million from December 31, 2019. As of June 30, 2020, wealth assets consisted of $10.35 billion of wealth assets where fees are set at fixed amounts, an increase of $779.9 million from December 31, 2019, and $6.66 billion of wealth assets where fees are predominantly determined based on the market value of the assets held in their accounts, a decrease of $315.0 million from December 31, 2019.

  • The capital ratios for the Bank and the Corporation, as of June 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 March 2020, the U.S. banking agencies issued an interim 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. The current and prior quarter ratios reflect the Corporation's election of the five-year transition provision.

EARNINGS CONFERENCE CALL

The Corporation will hold an earnings conference call at 8:30 a.m. Eastern Time on Tuesday, July 21, 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, August 21, 2020.  This recording may be obtained by calling 1-877-344-7529, referring to conference number 10145764.

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/bmtc200721.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 second 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 Six Months Ended
 June 30,
2020
 March 31,
2020
 December 31,
2019
 September 30,
2019
 June 30,
2019
 June 30,
2020
 June 30,
2019
Consolidated Balance Sheet (selected items)             
Interest-bearing deposits with banks$448,113  $69,239  $42,328  $86,158  $49,643     
Investment securities 550,974   537,592   1,027,182   625,452   606,844     
Loans held for sale 4,116   2,785   4,249   5,767   6,333     
Portfolio loans and leases 3,722,165   3,767,166   3,689,313   3,540,747   3,534,665     
Allowance for credit losses ("ACL") on loans and leases (54,974)  (54,070)  (22,602)  (20,777)  (21,182)    
Goodwill and other intangible assets 201,315   202,225   203,143   204,096   205,050     
Total assets 5,271,311   4,923,033   5,263,259   4,828,641   4,736,565     
Deposits - interest-bearing 3,026,152   2,850,986   2,944,072   2,794,079   2,691,502     
Deposits - non-interest-bearing 1,217,496   927,922   898,173   904,409   940,911     
Short-term borrowings 28,891   162,045   493,219   203,471   207,828     
Long-term FHLB advances 44,837   47,303   52,269   44,735   47,941     
Subordinated notes 98,794   98,750   98,705   98,660   98,616     
Jr. subordinated debentures 21,843   21,798   21,753   21,709   21,665     
Total liabilities 4,667,637   4,329,854   4,651,032   4,227,706   4,146,410     
Total shareholders' equity 603,674   593,179   612,227   600,935   590,155     
              
Average Balance Sheet (selected items)             
Interest-bearing deposits with banks$195,966  $50,330  $66,060  $48,597  $37,843  $123,148  $35,306 
Investment securities 542,321   542,876   593,289   622,336   587,518   542,598   578,765 
Loans held for sale 3,805   2,319   4,160   4,375   3,353   3,062   2,289 
Portfolio loans and leases 3,936,227   3,736,067   3,594,449   3,528,548   3,520,866   3,836,146   3,498,818 
Total interest-earning assets 4,678,319   4,331,592   4,257,958   4,203,856   4,149,580   4,504,954   4,115,178 
Goodwill and intangible assets 201,823   202,760   203,663   204,637   205,593   202,292   206,152 
Total assets 5,226,074   4,844,918   4,775,407   4,760,074   4,651,625   5,035,495   4,598,672 
Deposits - interest-bearing 2,969,113   2,853,712   2,799,050   2,776,226   2,794,854   2,911,412   2,734,857 
Short-term borrowings 136,816   140,585   121,612   169,985   68,529   138,700   112,844 
Long-term FHLB advances 46,161   47,335   53,443   45,698   52,397   46,748   53,883 
Subordinated notes 98,770   98,725   98,681   98,634   98,587   98,748   98,564 
Jr. subordinated debentures 21,814   21,768   21,726   21,680   21,637   21,791   21,616 
Total interest-bearing liabilities 3,272,674   3,162,125   3,094,512   3,112,223   3,036,004   3,217,399   3,021,764 
Total liabilities 4,625,511   4,229,908   4,168,899   4,164,763   4,070,160   4,427,708   4,021,870 
Total shareholders' equity 600,563   615,010   606,508   595,311   581,465   607,787   576,802 
              
Income Statement             
Net interest income$37,385  $36,333  $35,985  $37,398  $36,611  $73,718  $74,258 
Provision for loan and lease losses 4,302   32,335   2,225   919   1,627   36,637   5,363 
Noninterest income 22,773   18,300   23,255   19,455   20,221   41,073   39,474 
Noninterest expense 36,843   36,418   36,430   35,173   35,188   73,261   74,912 
Income tax expense (benefit) 4,010   (2,957)  4,202   4,402   4,239   1,053   7,003 
Net income (loss) 15,003   (11,163)  16,383   16,359   15,778   3,840   26,454 
Net loss attributable to noncontrolling interest (32)  -   (1)  (1)  (7)  (32)  (8)
Net income (loss) attributable to Bryn Mawr Bank Corporation 15,035   (11,163)  16,384   16,360   15,785   3,872   26,462 
Basic earnings per share 0.75   (0.56)  0.81   0.81   0.78   0.19   1.31 
Diluted earnings per share 0.75   (0.56)  0.81   0.81   0.78   0.19   1.31 
Net income (loss) (core) (1) 15,399   (11,163)  16,384   16,360   15,785   4,236   30,015 
Basic earnings per share (core) (1) 0.77   (0.56)  0.81   0.81   0.78   0.21   1.49 
Diluted earnings per share (core) (1) 0.77   (0.56)  0.81   0.81   0.78   0.21   1.48 
Dividends paid or accrued per share 0.26   0.26   0.26   0.26   0.25   0.52   0.50 
Profitability Indicators             
Return on average assets 1.16%  -0.93%  1.36%  1.36%  1.36%  0.15%  1.16%
Return on average equity 10.07%  -7.30%  10.72%  10.90%  10.89%  1.28%  9.25%
Return on tangible equity(1) 15.86%  -10.17%  16.85%  17.35%  17.62%  2.63%  15.18%
Return on tangible equity (core)(1) 16.23%  -10.17%  16.85%  17.35%  17.62%  2.81%  17.11%
Return on average assets (core)(1) 1.19%  -0.93%  1.36%  1.36%  1.36%  0.17%  1.32%
Return on average equity (core)(1) 10.31%  -7.30%  10.72%  10.90%  10.89%  1.40%  10.49%
Tax-equivalent net interest margin 3.22%  3.38%  3.36%  3.54%  3.55%  3.30%  3.65%
Efficiency ratio(1) 57.25%  64.98%  59.89%  60.19%  60.23%  61.01%  60.25%
Share Data             
Closing share price$27.66  $28.38  $41.24  $36.51  $37.32     
Book value per common share$30.29  $29.78  $30.42  $29.86  $29.31     
Tangible book value per common share$20.23  $19.66  $20.36  $19.75  $19.16     
Price / book value 91.32%  95.30%  135.57%  122.27%  127.33%    
Price / tangible book value 136.73%  144.35%  202.55%  184.86%  194.78%    
Weighted average diluted shares outstanding 20,008,219   20,053,159   20,213,008   20,208,630   20,244,409   20,077,159   20,256,469 
Shares outstanding, end of period 19,927,893   19,921,524   20,126,296   20,124,193   20,131,854     
Wealth Management Information:             
Wealth assets under mgmt, administration, supervision and brokerage (2)$17,012,903  $15,593,732  $16,548,060  $15,609,786  $14,815,298     
Fees for wealth management services$11,276  $11,168  $11,672  $10,826  $11,510     
Capital Ratios(3)             
Bryn Mawr Trust Company ("BMTC")             
Tier I capital to risk weighted assets ("RWA") 11.68%  11.10%  11.47%  12.17%  11.83%    
Total capital to RWA 12.93%  12.33%  12.09%  12.75%  12.42%    
Tier I leverage ratio 8.75%  9.12%  9.37%  9.75%  9.61%    
Tangible equity ratio (1) 8.67%  8.98%  8.58%  9.75%  9.58%    
Common equity Tier I capital to RWA 11.68%  11.10%  11.47%  12.17%  11.83%    
              
Bryn Mawr Bank Corporation ("BMBC")             
Tier I capital to RWA 11.27%  10.80%  11.42%  11.33%  11.12%    
Total capital to RWA 15.14%  14.62%  14.69%  14.61%  14.44%    
Tier I leverage ratio 8.44%  8.88%  9.33%  9.07%  9.04%    
Tangible equity ratio (1) 7.95%  8.30%  8.10%  8.60%  8.51%    
Common equity Tier I capital to RWA 10.71%  10.25%  10.86%  10.75%  10.54%    
              
Asset Quality Indicators             
Net loan and lease charge-offs ("NCO"s)$3,398  $4,073  $400  $1,324  $1,061  $7,471  $3,607 
              
Loans and leases risk-rated Special Mention$55,171  $14,833  $19,922  $40,494  $14,232     
Total classified loans and leases 154,687   60,972   66,901   36,192   40,908     
Total criticized loans and leases$209,858  $75,805  $86,823  $76,686  $55,140     
              
Nonperforming loans and leases ("NPL"s)$8,418  $7,557  $10,648  $14,119  $12,179     
Other real estate owned ("OREO") -   -   -   72   155     
Total nonperforming assets ("NPA"s)$ 8,418  $ 7,557  $ 10,648  $ 14,191  $ 12,334     
              
Nonperforming loans and leases 30 or more days past due$3,223  $3,380  $6,314  $4,940  $8,224     
Performing loans and leases 30 to 89 days past due 10,022   19,930   7,196   5,273   9,466     
Performing loans and leases 90 or more days past due -   -   -   -   -     
Total delinquent loans and leases$ 13,245  $ 23,310  $ 13,510  $ 10,213  $ 17,690     
              
Delinquent loans and leases to total loans and leases 0.36%  0.62%  0.37%  0.29%  0.50%    
Delinquent performing loans and leases to total loans and leases 0.27%  0.53%  0.19%  0.15%  0.27%    
NCOs / average loans and leases (annualized) 0.35%  0.44%  0.04%  0.15%  0.12%  0.39%  0.21%
NPLs / total portfolio loans and leases 0.23%  0.20%  0.29%  0.40%  0.34%    
NPAs / total loans and leases and OREO 0.23%  0.20%  0.29%  0.40%  0.35%    
NPAs / total assets 0.16%  0.15%  0.20%  0.29%  0.26%    
ACL on loans and leases / NPLs 653.05%  715.50%  212.27%  147.16%  173.92%    
ACL / classified loans and leases 35.54%  88.68%  33.78%  57.41%  51.78%    
ACL / criticized loans and leases 26.20%  71.33%  26.03%  27.09%  38.42%    
ACL on loans and leases / portfolio loans 1.48%  1.44%  0.61%  0.59%  0.60%    
ACL on loans and leases for originated loans and leases / Originated loans and leases (1) 1.51%  1.47%  0.68%  0.66%  0.68%    
(Total ACL on loans and leases + Loan mark) / Total Gross portfolio loans and leases (1) 1.69%  1.68%  0.91%  0.92%  1.00%    
              
Troubled debt restructurings ("TDR"s) included in NPLs$1,792  $3,248  $3,018  $5,755  $4,190     
TDRs in compliance with modified terms 10,013   4,852   5,071   5,069   5,141     
Total TDRs$ 11,805  $ 8,100  $ 8,089  $ 10,824  $ 9,331     
              
(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 and June 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.
     


          
Bryn Mawr Bank Corporation
Detailed Balance Sheets (unaudited)
(dollars in thousands)
          
 June 30,
2020
 March 31,
2020
 December 31,
2019
 September 30,
2019
 June 30,
2019
Assets         
Cash and due from banks$16,408  $17,803  $11,603  $8,582  $13,742 
Interest-bearing deposits with banks 448,113   69,239   42,328   86,158   49,643 
Cash and cash equivalents 464,521   87,042   53,931   94,740   63,385 
Investment securities, available for sale 530,581   516,466   1,005,984   604,181   588,119 
Investment securities, held to maturity 12,592   13,369   12,577   12,947   10,209 
Investment securities, trading 7,801   7,757   8,621   8,324   8,516 
Loans held for sale 4,116   2,785   4,249   5,767   6,333 
Portfolio loans and leases, originated 3,422,890   3,424,601   3,320,816   3,137,769   3,088,849 
Portfolio loans and leases, acquired 299,275   342,565   368,497   402,978   445,816 
Total portfolio loans and leases 3,722,165   3,767,166   3,689,313   3,540,747   3,534,665 
Less: Allowance for credit losses on originated loan and leases (51,659)  (50,365)  (22,526)  (20,675)  (21,076)
Less: Allowance for credit losses on acquired loan and leases (3,315)  (3,705)  (76)  (102)  (106)
Total allowance for credit losses on loans and leases (54,974)  (54,070)  (22,602)  (20,777)  (21,182)
Net portfolio loans and leases 3,667,191   3,713,096   3,666,711   3,519,970   3,513,483 
Premises and equipment 61,778   63,144   64,965   66,439   68,092 
Operating lease right-of-use assets 39,348   40,157   40,961   42,200   43,116 
Accrued interest receivable 15,577   12,017   12,482   12,746   13,312 
Mortgage servicing rights 3,440   4,115   4,450   4,580   4,744 
Bank owned life insurance 59,728   59,399   59,079   58,749   58,437 
Federal Home Loan Bank ("FHLB") stock 4,506   11,928   23,744   16,148   14,677 
Goodwill 184,012   184,012   184,012   184,012   184,012 
Intangible assets 17,303   18,213   19,131   20,084   21,038 
Other investments 17,055   16,786   16,683   16,683   16,517 
Other assets 181,762   172,747   85,679   161,071   122,575 
Total assets$5,271,311  $4,923,033  $5,263,259  $4,828,641  $4,736,565 
          
Liabilities         
Deposits         
Noninterest-bearing$1,217,496  $927,922  $898,173  $904,409  $940,911 
Interest-bearing 3,026,152   2,850,986   2,944,072   2,794,079   2,691,502 
Total deposits 4,243,648   3,778,908   3,842,245   3,698,488   3,632,413 
Short-term borrowings 28,891   162,045   493,219   203,471   207,828 
Long-term FHLB advances 44,837   47,303   52,269   44,735   47,941 
Subordinated notes 98,794   98,750   98,705   98,660   98,616 
Jr. subordinated debentures 21,843   21,798   21,753   21,709   21,665 
Operating lease liabilities 43,693   44,482   45,258   46,506   47,393 
Accrued interest payable 7,907   7,230   6,248   9,015   8,244 
Other liabilities 178,024   169,338   91,335   105,122   82,310 
Total liabilities 4,667,637   4,329,854   4,651,032   4,227,706   4,146,410 
          
Shareholders' equity         
Common stock 24,662   24,655   24,650   24,646   24,583 
Paid-in capital in excess of par value 380,167   379,495   378,606   377,806   376,652 
Less: common stock held in treasury, at cost (88,612)  (88,540)  (81,174)  (81,089)  (78,583)
Accumulated other comprehensive income, net of tax 9,019   8,869   2,187   2,698   1,700 
Retained earnings 279,165   269,395   288,653   277,568   266,496 
Total Bryn Mawr Bank Corporation shareholders' equity 604,401   593,874   612,922   601,629   590,848 
Noncontrolling interest (727)  (695)  (695)  (694)  (693)
Total shareholders' equity 603,674   593,179   612,227   600,935   590,155 
Total liabilities and shareholders' equity$5,271,311  $4,923,033  $5,263,259  $4,828,641  $4,736,565 
                    


          
Bryn Mawr Bank Corporation
Supplemental Balance Sheet Information (unaudited)
(dollars in thousands)
 Portfolio Loans and Leases(1) as of
 June 30,
2020
 March 31,
2020
 December 31,
2019
 September 30,
2019
 June 30,
2019
Commercial real estate - nonowner-occupied$1,375,904  $1,354,416  $1,337,167  $1,238,881  $1,217,763 
Commercial real estate - owner-occupied 542,688   530,667   527,607   499,202   514,013 
Home equity lines of credit 194,767   209,278   224,262   227,682   231,697 
Residential mortgage - 1st liens 695,270   710,495   706,690   702,588   704,605 
Residential mortgage - junior liens 33,644   35,583   36,843   37,240   39,063 
Construction 212,374   221,116   202,198   195,161   195,269 
Total real estate loans 3,054,647   3,061,555   3,034,767   2,900,754   2,902,410 
Commercial & Industrial 457,529   491,298   432,227   426,084   419,936 
Consumer 43,762   45,951   57,241   50,760   49,453 
Leases 166,227   168,362   165,078   163,149   162,866 
Total non-real estate loans and leases 667,518   705,611   654,546   639,993   632,255 
Total portfolio loans and leases$3,722,165  $3,767,166  $3,689,313  $3,540,747  $3,534,665 
          
          
 Nonperforming Loans and Leases(1) as of
 June 30,
2020
 March 31,
2020
 December 31,
2019
 September 30,
2019
 June 30,
2019
Commercial real estate - nonowner-occupied$245  $181  $199  $3,055  $3,147 
Commercial real estate - owner-occupied 4,046   2,543   4,159   4,535   2,470 
Home equity lines of credit 915   758   636   693   470 
Residential mortgage - 1st liens 912   1,080   2,447   2,693   3,102 
Residential mortgage - junior liens 72   79   83   84   72 
Total nonperforming real estate loans 6,190   4,641   7,524   11,060   9,261 
Commercial & Industrial 1,973   2,692   2,180   1,991   2,056 
Consumer 36   52   61   75   60 
Leases 219   172   883   993   802 
Total nonperforming non-real estate loans and leases 2,228   2,916   3,124   3,059   2,918 
Total nonperforming portfolio loans and leases$8,418  $7,557  $10,648  $14,119  $12,179 
          
          
 Net Loan and Lease Charge-Offs (Recoveries)(1) for the Three Months Ended
 June 30,
2020
 March 31,
2020
 December 31,
2019
 September 30,
2019
 June 30,
2019
Commercial real estate - nonowner-occupied$(4) $(2) $(1,067) $(7) $(4)
Commercial real estate - owner-occupied 1,234   -   190   680   - 
Home equity lines of credit (4)  114   33   (22)  128 
Residential mortgage - 1st liens 420   727   378   (7)  339 
Residential mortgage - junior liens -   -   -   -   52 
Construction (1)  (1)  (1)  (1)  (1)
Total net charge-offs of real estate loans 1,645   838   (467)  643   514 
Commercial & Industrial 499   612   57   (15)  (17)
Consumer 238   261   227   187   119 
Leases 1,016   2,362   583   509   445 
Total net charge-offs of non-real estate loans and leases 1,753   3,235   867   681   547 
Total net charge-offs$3,398  $4,073  $400  $1,324  $1,061 
          
(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
 June 30,
2020
 March 31,
2020
 December 31,
2019
 September 30,
2019
 June 30,
2019
U.S. Treasury securities$100  $101  $500,101  $101  $101 
Obligations of the U.S. Government and agencies 114,149   106,679   102,020   172,753   192,799 
State & political subdivisions - tax-free 4,583   4,562   5,379   6,327   6,700 
State & political subdivisions - taxable -   -   -   -   170 
Mortgage-backed securities 377,204   374,775   366,002   388,891   348,975 
Collateralized mortgage obligations 25,873   29,699   31,832   35,459   38,724 
Corporate bonds 8,022   -   -   -   - 
Other debt securities 650   650   650   650   650 
Total investment securities available for sale, at fair value$530,581  $516,466  $1,005,984  $604,181  $588,119 
          
          
 Unrealized Gain (Loss) on Investment Securities Available for Sale
 June 30,
2020
 March 31,
2020
 December 31,
2019
 September 30,
2019
 June 30,
2019
U.S. Treasury securities$-  $1  $35  $1  $1 
Obligations of the U.S. Government and agencies 1,103   1,036   (159)  188   275 
State & political subdivisions - tax-free 30   10   13   8   8 
Mortgage-backed securities 11,683   11,554   5,025   4,605   3,364 
Collateralized mortgage obligations 702   778   36   180   89 
Corporate bonds 22   -   -   -   - 
Total unrealized gains (losses) on investment securities available for sale$13,540  $13,379  $4,950  $4,982  $3,737 
          
          
 Deposits        
 June 30,
2020
 March 31,
2020
 December 31,
2019
 September 30,
2019
 June 30,
2019
Interest-bearing deposits:         
Interest-bearing demand$910,441  $750,127  $944,915  $778,809  $745,134 
Money market 1,239,523   1,133,952   1,106,478   983,170   966,596 
Savings 249,636   247,799   220,450   248,539   263,830 
Retail time deposits 400,186   406,828   405,123   467,346   502,745 
Wholesale non-maturity deposits 146,463   198,888   177,865   274,121   100,047 
Wholesale time deposits 79,903   113,392   89,241   42,094   113,150 
Total interest-bearing deposits 3,026,152   2,850,986   2,944,072   2,794,079   2,691,502 
Noninterest-bearing deposits 1,217,496   927,922   898,173   904,409   940,911 
Total deposits$4,243,648  $3,778,908  $3,842,245  $3,698,488  $3,632,413 
          


              
Bryn Mawr Bank Corporation
Detailed Income Statements (unaudited)
(dollars in thousands, except per share data)
 For the Three Months Ended For the Six Months Ended
 June 30,
2020
 March 31,
2020
 December 31,
2019
 September 30,
2019
 June 30,
2019
 June 30,
2020
 June 30,
2019
Interest income:             
Interest and fees on loans and leases$40,690  $42,795  $43,220  $45,527  $44,783  $83,485  $89,620 
Interest on cash and cash equivalents 37   111   195   143   73   148   205 
Interest on investment securities 2,894   3,201   3,545   3,903   3,532   6,095   7,031 
Total interest income 43,621   46,107   46,960   49,573   48,388   89,728   96,856 
Interest expense:             
Interest on deposits 4,476   7,637   8,674   9,510   9,655   12,113   17,752 
Interest on short-term borrowings 232   453   555   937   357   685   1,300 
Interest on FHLB advances 155   244   279   243   269   399   547 
Interest on jr. subordinated debentures 229   295   323   340   352   524   710 
Interest on subordinated notes 1,144   1,145   1,144   1,145   1,144   2,289   2,289 
Total interest expense 6,236   9,774   10,975   12,175   11,777   16,010   22,598 
Net interest income 37,385   36,333   35,985   37,398   36,611   73,718   74,258 
Provision for credit losses ("PCL") on loans and leases 4,302   32,335   2,225   919   1,627   36,637   5,363 
Net interest income after PCL on loans and leases 33,083   3,998   33,760   36,479   34,984   37,081   68,895 
Noninterest income:             
Fees for wealth management services 11,276   11,168   11,672   10,826   11,510   22,444   21,902 
Insurance commissions 1,303   1,533   1,666   1,842   1,697   2,836   3,369 
Capital markets revenue 2,975   2,361   5,455   2,113   1,489   5,336   3,708 
Service charges on deposits 603   846   858   856   852   1,449   1,660 
Loan servicing and other fees 452   461   489   555   553   913   1,162 
Net gain on sale of loans 3,134   782   597   674   752   3,916   1,071 
Net gain (loss) on sale of other real estate owned -   148   (48)  (12)  -   148   (24)
Dividends on FHLB and FRB stocks 243   444   432   346   316   687   727 
Other operating income 2,787   557   2,134   2,255   3,052   3,344   5,899 
Total noninterest income 22,773   18,300   23,255   19,455   20,221   41,073   39,474 
Noninterest expense:             
Salaries and wages 16,926   16,989   18,667   17,765   17,038   33,915   37,939 
Employee benefits 3,221   3,500   2,685   3,288   3,317   6,721   7,483 
Occupancy and bank premises 3,033   3,015   3,206   3,008   3,125   6,048   6,377 
Furniture, fixtures and equipment 2,120   2,431   2,401   2,335   2,568   4,551   4,957 
Advertising 196   401   599   587   504   597   919 
Amortization of intangible assets 910   918   953   954   956   1,828   1,894 
Impairment (recovery) of mortgage servicing rights ("MSRs") 222   231   13   (19)  10   453   27 
Professional fees 1,575   1,368   1,754   1,044   1,316   2,943   2,636 
Pennsylvania bank shares tax 116   116   42   514   513   232   922 
Data processing 1,479   1,394   1,517   1,377   1,303   2,873   2,623 
Other operating expenses 7,045   6,055   4,593   4,320   4,538   13,100   9,135 
Total noninterest expense 36,843   36,418   36,430   35,173   35,188   73,261   74,912 
Income (loss) before income taxes 19,013   (14,120)  20,585   20,761   20,017   4,893   33,457 
Income tax expense (benefit) 4,010   (2,957)  4,202   4,402   4,239   1,053   7,003 
Net income (loss)$15,003  $(11,163) $16,383  $16,359  $15,778  $3,840  $26,454 
Net (loss) attributable to noncontrolling interest (32)  -   (1)  (1)  (7)  (32)  (8)
Net income (loss) attributable to Bryn Mawr Bank Corporation$15,035  $(11,163) $16,384  $16,360  $15,785  $3,872  $26,462 
              
Per share data:             
Weighted average shares outstanding 19,926,737   20,053,159   20,124,553   20,132,117   20,144,651   19,989,948   20,156,509 
Dilutive common shares 81,482   -   88,455   76,513   99,758   87,211   99,960 
Weighted average diluted shares 20,008,219   20,053,159   20,213,008   20,208,630   20,244,409   20,077,159   20,256,469 
Basic earnings per common share$0.75  $(0.56) $0.81  $0.81  $0.78  $0.19  $1.31 
Diluted earnings per common share$0.75  $(0.56) $0.81  $0.81  $0.78  $0.19  $1.31 
Dividends paid or accrued per common share$0.26  $0.26  $0.26  $0.26  $0.25  $0.52  $0.50 
Effective tax rate 21.09%  20.94%  20.41%  21.20%  21.18%  21.52%  20.93%
                            


                       
Bryn Mawr Bank Corporation 
Tax-Equivalent Net Interest Margin (unaudited)
(dollars in thousands)
                       
 For the Three Months Ended For the Six Months Ended
 June 30,
2020
March 31,
2020
December 31,
2019
September 30,
2019
June 30,
2019
 June 30,
2020
June 30,
2019
 Average
Balance
Interest
Income/
Expense
Average
Rates
Earned/
Paid
Average
Balance
Interest
Income/
Expense
Average
Rates
Earned/
Paid
Average
Balance
Interest
Income/
Expense
Average
Rates
Earned/
Paid
Average
Balance
Interest
Income/
Expense
Average
Rates
Earned/
Paid
Average
Balance
Interest
Income/
Expense
Average
Rates
Earned/
Paid
 Average
Balance
Interest
Income/
Expense
Average
Rates
Earned/
Paid
Average
Balance
Interest
Income/
Expense
Average
Rates
Earned/
Paid
                       
Assets:                      
Interest-bearing deposits with other banks$195,966 $37 0.08%$50,330 $111 0.89%$66,060 $195 1.17%$48,597 $143 1.17%$37,843 $73 0.77% $123,148 $148 0.24%$35,306 $205 1.17%
Investment securities - available for sale:                      
Taxable 516,823  2,775 2.16% 516,244  3,065 2.39% 566,359  3,334 2.34% 594,975  3,765 2.51% 560,999  3,400 2.43%  516,534  5,840 2.27% 552,391  6,763 2.47%
Tax-exempt 4,572  26 2.29% 4,909  28 2.29% 5,844  33 2.24% 6,594  36 2.17% 7,530  43 2.29%  4,740  54 2.29% 8,656  98 2.28%
Total investment securities - available for sale 521,395  2,801 2.16% 521,153  3,093 2.39% 572,203  3,367 2.33% 601,569  3,801 2.51% 568,529  3,443 2.43%  521,274  5,894 2.27% 561,047  6,861 2.47%
                       
Investment securities - held to maturity 13,126  73 2.24% 13,195  87 2.65% 12,756  84 2.61% 12,360  80 2.57% 10,417  71 2.73%  13,160  160 2.44% 9,615  138 2.89%
Investment securities - trading 7,800  24 1.24% 8,528  25 1.18% 8,330  99 4.72% 8,407  27 1.27% 8,572  24 1.12%  8,164  49 1.21% 8,103  46 1.14%
                       
Loans and leases * 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% 3,524,219  44,903 5.11%  3,839,208  83,677 4.38% 3,501,107  89,861 5.18%
                       
Total interest-earning assets 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% 4,149,580  48,514 4.69%  4,504,954  89,928 4.01% 4,115,178  97,111 4.76%
                       
Cash and due from banks 16,263    12,479    9,829    12,890    13,725     14,371    14,068   
Less: allowance for loan and lease losses (54,113)   (25,786)   (21,124)   (21,438)   (20,844)    (39,950)   (20,368)  
Other assets 585,605    526,633    528,744    564,766    509,164     556,120    489,794   
                       
Total assets$5,226,074   $4,844,918   $4,775,407   $4,760,074   $4,651,625    $5,035,495   $4,598,672   
                       
Liabilities:                      
                       
Interest-bearing deposits:                      
Savings, NOW and market rate deposits$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%$1,928,755 $5,040 1.05% $2,255,215 $7,322 0.65%$1,863,790 $8,804 0.95%
Wholesale deposits 245,052  486 0.80% 253,322  977 1.55% 214,229  1,024 1.90% 299,309  1,729 2.29% 345,782  2,143 2.49%  249,186  1,463 1.18% 344,247  4,155 2.43%
Retail time deposits 410,911  1,649 1.61% 403,111  1,679 1.68% 435,198  1,991 1.82% 480,736  2,336 1.93% 520,317  2,472 1.91%  407,011  3,328 1.64% 526,820  4,793 1.83%
Total interest-bearing deposits 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% 2,794,854  9,655 1.39%  2,911,412  12,113 0.84% 2,734,857  17,752 1.31%
                       
Borrowings:                      
Short-term borrowings 136,816  232 0.68% 140,585  453 1.30% 121,612  555 1.81% 169,985  937 2.19% 68,529  357 2.09%  138,700  685 0.99% 112,844  1,300 2.32%
Long-term FHLB advances 46,161  155 1.35% 47,335  244 2.07% 53,443  279 2.07% 45,698  243 2.11% 52,397  269 2.06%  46,748  399 1.72% 53,883  547 2.05%
Subordinated notes 98,770  1,144 4.66% 98,725  1,145 4.66% 98,681  1,144 4.60% 98,634  1,145 4.61% 98,587  1,144 4.65%  98,748  2,289 4.66% 98,564  2,289 4.68%
Jr. subordinated debt 21,814  229 4.22% 21,768  295 5.45% 21,726  323 5.90% 21,680  340 6.22% 21,637  352 6.53%  21,791  524 4.84% 21,616  710 6.62%
Total borrowings 303,561  1,760 2.33% 308,413  2,137 2.79% 295,462  2,301 3.09% 335,997  2,665 3.15% 241,150  2,122 3.53%  305,987  3,897 2.56% 286,907  4,846 3.41%
                       
Total interest-bearing liabilities 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% 3,036,004  11,777 1.56%  3,217,399  16,010 1.00% 3,021,764  22,598 1.51%
                       
Noninterest-bearing deposits 1,126,139    894,264    915,128    903,314    909,945     1,010,202    890,941   
Other liabilities 226,698    173,519    159,259    149,226    124,211     200,107    109,165   
Total noninterest-bearing liabilities 1,352,837    1,067,783    1,074,387    1,052,540    1,034,156     1,210,309    1,000,106   
                       
Total liabilities 4,625,511    4,229,908    4,168,899    4,164,763    4,070,160     4,427,708    4,021,870   
                       
Shareholders' equity 600,563    615,010    606,508    595,311    581,465     607,787    576,802   
                       
Total liabilities and shareholders' equity$5,226,074   $4,844,918   $4,775,407   $4,760,074   $4,651,625    $5,035,495   $4,598,672   
                       
Net interest spread  2.99%  3.05%  2.98%  3.14%  3.13%   3.01%  3.25%
Effect of noninterest-bearing sources  0.23%  0.33%  0.38%  0.40%  0.42%   0.29%  0.40%
                       
Tax-equivalent net interest margin $37,478 3.22% $36,440 3.38% $36,096 3.36% $37,518 3.54% $36,737 3.55%  $73,918 3.30% $74,513 3.65%
                       
Tax-equivalent adjustment $93 0.01% $107 0.01% $111 0.01% $120 0.01% $126 0.01%  $200 0.01% $255 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 leasesIncome$1,017 0.10% $910 0.10% $1,027 0.11% $1,501 0.17% $1,193 0.14%  $1,927 0.10% $3,190 0.18%
Retail time depositsExpense$(103)-0.10% $(118)-0.12% $(134)-0.12% $(151)-0.12% $(171)-0.13%   (221)-0.11%  (393)-0.15%
Long-term FHLB advancesExpense$35 0.30% $34 0.29% $34 0.25% $34 0.30% $34 0.26%   69 0.30%  67 0.25%
Jr. subordinated debtExpense$45 0.83% $45 0.83% $44 0.80% $44 0.81% $43 0.80%   90 0.83%  85 0.79%
Net interest income from fair value marks $1,040   $949   $1,083   $1,574   $1,287    $1,989   $3,431  
Purchase accounting effect on tax-equivalent margin  0.09%  0.09%  0.10%  0.15%  0.12%   0.09%  0.17%
                       
* 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 Six Months Ended
 June 30,
2020
 March 31,
2020
 December 31,
2019
 September 30,
2019
 June 30,
2019
 June 30,
2020
 June 30,
2019
Reconciliation of Net Income to Net Income (core):             
Net income (loss) attributable to BMBC (a GAAP measure)$15,035  $(11,163) $16,384  $16,360  $15,785  $3,872  $26,462 
Less: Tax-effected non-core noninterest income:             
Gain on sale of PPP loans (1,905)  -   -   -   -   (1,905)  - 
Add: Tax-effected non-core noninterest expense items:             
Voluntary years of service incentive program expenses -   -   -   -   -   -   3,553 
BMT Investment Advisers wind-down costs 1,844   -   -   -   -   1,844   - 
Severance associated with staff reduction 425   -   -   -   -   425   - 
Net income (loss) (core) (a non-GAAP measure)$ 15,399  $ (11,163) $ 16,384  $ 16,360  $ 15,785  $ 4,236  $ 30,015 
              
Calculation of Basic and Diluted Earnings per Common Share (core):             
Weighted average common shares outstanding 19,926,737   20,053,159   20,124,553   20,132,117   20,144,651   19,989,948   20,156,509 
Dilutive common shares 81,482   -   88,455   76,513   99,758   87,211   99,960 
Weighted average diluted shares 20,008,219   20,053,159   20,213,008   20,208,630   20,244,409   20,077,159   20,256,469 
Basic earnings per common share (core) (a non-GAAP measure)$0.77  $(0.56) $0.81  $0.81  $0.78  $0.21  $1.49 
Diluted earnings per common share (core) (a non-GAAP measure)$0.77  $(0.56) $0.81  $0.81  $0.78  $0.21  $1.48 
              
Calculation of Return on Average Tangible Equity:             
Net income (loss) attributable to BMBC (a GAAP measure)$15,035  $(11,163) $16,384  $16,360  $15,785  $3,872  $26,462 
Add: Tax-effected amortization and impairment of intangible assets 719   725   753   754   755   1,444   1,496 
Net tangible income (numerator)$15,754  $(10,438) $17,137  $17,114  $16,540  $5,316  $27,958 
              
Average shareholders' equity$600,563  $615,010  $606,508  $595,311  $581,465  $607,787  $576,802 
Less: Average Noncontrolling interest 696   695   694   693   688   695   687 
Less: Average goodwill and intangible assets (201,823)  (202,760)  (203,663)  (204,637)  (205,593)  (202,292)  (206,152)
Net average tangible equity (denominator)$399,436  $412,945  $403,539  $391,367  $376,560  $406,190  $371,337 
              
Return on tangible equity (a non-GAAP measure) 15.86%  -10.17%  16.85%  17.35%  17.62%  2.63%  15.18%
              
Calculation of Return on Average Tangible Equity (core):             
Net income (loss) (core) (a non-GAAP measure)$15,399  $(11,163) $16,384  $16,360  $15,785  $4,236  $30,015 
Add: Tax-effected amortization and impairment of intangible assets 719   725   753   754   755   1,444   1,496 
Net tangible income (loss) (core) (numerator)$16,118  $(10,438) $17,137  $17,114  $16,540  $5,680  $31,511 
              
Average shareholders' equity$600,563  $615,010  $606,508  $595,311  $581,465  $607,787  $576,802 
Less: Average Noncontrolling interest 696   695   694   693   688   695   687 
Less: Average goodwill and intangible assets (201,823)  (202,760)  (203,663)  (204,637)  (205,593)  (202,292)  (206,152)
Net average tangible equity (denominator)$399,436  $412,945  $403,539  $391,367  $376,560  $406,190  $371,337 
              
Return on tangible equity (core) (a non-GAAP measure) 16.23%  -10.17%  16.85%  17.35%  17.62%  2.81%  17.11%
              
Calculation of Tangible Equity Ratio (BMBC):             
Total shareholders' equity$603,674  $593,179  $612,227  $600,935  $590,155     
Less: Noncontrolling interest 727   695   695   694   693     
Less: Goodwill and intangible assets (201,315)  (202,225)  (203,143)  (204,096)  (205,050)    
Net tangible equity (numerator)$403,086  $391,649  $409,779  $397,533  $385,798     
              
Total assets$5,271,311  $4,923,033  $5,263,259  $4,828,641  $4,736,565     
Less: Goodwill and intangible assets (201,315)  (202,225)  (203,143)  (204,096)  (205,050)    
Tangible assets (denominator)$5,069,996  $4,720,808  $5,060,116  $4,624,545  $4,531,515     
              
Tangible equity ratio (BMBC)(1) 7.95%  8.30%  8.10%  8.60%  8.51%    
              
Calculation of Tangible Equity Ratio (BMTC):             
Total shareholders' equity$639,711  $624,959  $624,030  $641,565  $625,464     
Less: Noncontrolling interest 727   695   695   694   693     
Less: Goodwill and intangible assets (201,069)  (201,979)  (190,694)  (191,572)  (192,450)    
Net tangible equity (numerator)$439,369  $423,675  $434,031  $450,687  $433,707     
              
Total assets$5,267,536  $4,919,004  $5,247,649  $4,813,704  $4,721,394     
Less: Goodwill and intangible assets (201,069)  (201,979)  (190,694)  (191,572)  (192,450)    
Tangible assets (denominator)$5,066,467  $4,717,025  $5,056,955  $4,622,132  $4,528,944     
              
Tangible equity ratio (BMTC)(1) 8.67%  8.98%  8.58%  9.75%  9.58%    
              
Calculation of Return on Average Assets (core)             
Return on average assets (GAAP) 1.16%  -0.93%  1.36%  1.36%  1.36%  0.15%  1.16%
Effect of adjustment to GAAP net income to core net income 0.03%  0.00%  0.00%  0.00%  0.00%  0.02%  0.16%
Return on average assets (core) 1.19%  -0.93%  1.36%  1.36%  1.36%  0.17%  1.32%
              
Calculation of Return on Average Equity (core)             
Return on average equity (GAAP) 10.07%  -7.30%  10.72%  10.90%  10.89%  1.28%  9.25%
Effect of adjustment to GAAP net income to core net income 0.24%  0.00%  0.00%  0.00%  0.00%  0.12%  1.24%
Return on average equity (core) 10.31%  -7.30%  10.72%  10.90%  10.89%  1.40%  10.49%
              
Calculation of Tax-equivalent net interest margin adjusting for the impact of purchase accounting:             
Tax-equivalent net interest margin 3.22%  3.38%  3.36%  3.54%  3.55%  3.30%  3.65%
Effect of fair value marks 0.09%  0.09%  0.10%  0.15%  0.12%  0.09%  0.17%
Tax-equivalent net interest margin adjusting for the impact of purchase accounting 3.13%  3.29%  3.26%  3.39%  3.43%  3.21%  3.48%
              
(1)Capital Ratios for the current quarter are to be considered preliminary until the Call Reports are filed. The March 31, 2020 and June 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$37,478  $36,440  $36,096  $37,518  $36,737  $73,918  $74,513 
Effect of fair value marks 1,040   949   1,083   1,574   1,287   1,989   3,431 
Tax-equivalent net interest income adjusting for the impact of purchase accounting$36,438  $35,491  $35,013  $35,944  $35,450  $71,929  $71,082 
              
Calculation of Efficiency Ratio:             
Noninterest expense$36,843  $36,418  $36,430  $35,173  $35,188  $73,261  $74,912 
Less: certain noninterest expense items*:             
Amortization of intangibles (910)  (918)  (953)  (954)  (956)  (1,828)  (1,894)
Voluntary years of service incentive program expenses -   -   -   -   -   -   (4,498)
BMT Investment Advisers, Inc. wind-down costs (2,334)  -   -   -   -   (2,334)  - 
Severance associated with staff reduction (538)  -   -   -   -   (538)  - 
Noninterest expense (adjusted) (numerator)$33,061  $35,500  $35,477  $34,219  $34,232  $68,561  $68,520 
              
Noninterest income$22,773  $18,300  $23,255  $19,455  $20,221  $41,073  $39,474 
Less: non-core noninterest income items:             
Gain on sale of PPP loans (2,411)  -   -   -   -   (2,411)  - 
Noninterest income (core)$20,362  $18,300  $23,255  $19,455  $20,221  $38,662  $39,474 
Net interest income 37,385   36,333   35,985   37,398   36,611   73,718   74,258 
Noninterest income (core) and net interest income (denominator)$57,747  $54,633  $59,240  $56,853  $56,832  $112,380  $113,732 
              
Efficiency ratio 57.25%  64.98%  59.89%  60.19%  60.23%  61.01%  60.25%
* 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$54,974  $54,070  $22,602  $20,777  $21,182     
Less: ACL on acquired loans and leases 3,315   3,705   76   102   106     
ACL on originated loans and leases$51,659  $50,365  $22,526  $20,675  $21,076     
              
Total ACL on loans and leases$54,974  $54,070  $22,602  $20,777  $21,182     
Loan mark on acquired loans and leases 8,037   9,478   10,905   11,948   14,174     
Total ACL on loans and leases + Loan mark$63,011  $63,548  $33,507  $32,725  $35,356     
              
Total Portfolio loans and leases$3,722,165  $3,767,166  $3,689,313  $3,540,747  $3,534,665     
Less: Originated loans and leases 3,422,890   3,424,601   3,320,816   3,137,769   3,088,849     
Net acquired loans$299,275  $342,565  $368,497  $402,978  $445,816     
Add: Loan mark on acquired loans 8,037   9,478   10,905   11,948   14,174     
Gross acquired loans (excludes loan mark)$307,312  $352,043  $379,402  $414,926  $459,990     
Originated loans and leases 3,422,890   3,424,601   3,320,816   3,137,769   3,088,849     
Total Gross portfolio loans and leases$3,730,202  $3,776,644  $3,700,218  $3,552,695  $3,548,839