Bryn Mawr Bank Corporation Reports First Quarter Net Income of $17.1 Million, Wealth Assets Under Management Surpass $20 Billion

Bryn Mawr, Pennsylvania, UNITED STATES


BRYN MAWR, Pa., April 22, 2021 (GLOBE NEWSWIRE) -- Bryn Mawr Bank Corporation (NASDAQ: BMTC) (the “Corporation”), parent of The Bryn Mawr Trust Company (the “Bank”), today reported net income of $17.1 million, or $0.85 diluted earnings per share, for the three months ended March 31, 2021, as compared to $15.5 million, or $0.78 diluted earnings per share, for the three months ended December 31, 2020, and a net loss of $11.2 million, or $(0.56) diluted earnings per share, for the three months ended March 31, 2020.

On a non-GAAP basis, core net income, which excludes due diligence and merger-related expenses related to the pending merger with WSFS Financial Corporation (“WSFS”) and other non-core income and expense items, as detailed in the appendix to this earnings release, was $18.7 million, or $0.93 diluted earnings per share, for the three months ended March 31, 2021 as compared to $15.5 million, or $0.77 diluted earnings per share, for the three months ended December 31, 2020. There were no meaningful non-core income or expense items for the three months ended March 31, 2020. 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 pleased with the start of 2021, posting another quarter of solid earnings and strong credit performance,” commented Frank Leto, President and Chief Executive Officer, continuing, “We saw modest improvement in the net interest margin and our wealth business continues to deliver consistent fee income as wealth assets under management surpassed the $20 billion milestone. While working through merger preparation efforts, we remain steadfast in our focus of achieving solid financial results for our shareholders, as well as serving our customers and communities in which we serve.”

On April 22, 2021, the Board of Directors of the Corporation declared a quarterly dividend of $0.27 per share, payable June 1, 2021 to shareholders of record as of May 4, 2021.

SIGNIFICANT ITEMS OF NOTE

Results of Operations – First Quarter 2021 Compared to Fourth Quarter 2020

  • Net income for the three months ended March 31, 2021 was $17.1 million, or $0.85 diluted earnings per share, as compared to $15.5 million, or $0.78 diluted earnings per share, for the three months ended December 31, 2020. Net interest income for the three months ended March 31, 2021 was $34.8 million, a $256 thousand decrease as compared to the linked quarter. The provision for credit losses (the “Provision”), which includes the provision for credit losses on loans and leases, off-balance sheet credit exposures, and accrued interest receivable on COVID-19 deferrals, for the three months ended March 31, 2021 was a recovery of $5.2 million, as compared to a recovery of $1.2 million for the three months ended December 31, 2020. Total noninterest income decreased $2.2 million, total noninterest expense decreased $921 thousand, and income tax expense increased $988 thousand for the three months ended March 31, 2021, as compared to the three months ended December 31, 2020.

  • Net interest income for the three months ended March 31, 2021 was $34.8 million, a $256 thousand decrease as compared to the linked quarter. Tax-equivalent net interest income for the three months ended March 31, 2021 was $34.9 million, a $262 thousand decrease as compared to the linked quarter. Tax-equivalent net interest income for the first quarter of 2021 was positively impacted by the accretion of purchase accounting fair value marks of $515 thousand, a decrease of $403 thousand as compared to $918 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 March 31, 2021 was $34.4 million, an increase of $141 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 3.16% for the three months ended March 31, 2021 as compared to 3.04% 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 3.11% for the three months ended March 31, 2021 as compared to 2.96% 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.

    The change in tax-equivalent net interest income adjusted for purchase accounting included an increase of $384 thousand in tax-equivalent interest income on available for sale investment securities, a decrease of $678 thousand in tax-equivalent interest and fees earned on loans and leases, and a decrease of $487 thousand in interest expense on deposits, for the three months ended March 31, 2021 as compared to the linked quarter.

    Tax-equivalent interest income on available for sale investment securities for the three months ended March 31, 2021 increased $384 thousand as compared to the linked quarter. The tax-equivalent yield on average available for sale investment securities for the three months ended March 31, 2021 was 1.63%, a 12 basis point increase as compared to the linked quarter. Average available for sale investment securities increased $59.5 million for the three months ended March 31, 2020 as compared to the linked quarter.

    Tax-equivalent interest and fees earned on loans and leases for the three months ended March 31, 2021 decreased $1.1 million as compared to the linked quarter. The tax-equivalent yield on average loans and leases for the three months ended March 31, 2021 was 3.90%, a one basis point increase as compared to the linked quarter. Average loans and leases decreased $50.4 million for the three months ended March 31, 2021 as compared to the linked quarter.

    Interest expense on deposits for the three months ended March 31, 2021 decreased $467 thousand as compared to the linked quarter. The rate paid on average interest-bearing deposits for the three months ended March 31, 2021 was 0.22%, a 5 basis point decrease as compared to the linked quarter. Average interest-bearing deposits for the three months ended March 31, 2021 decreased $152.9 million as compared to the linked quarter.
  • Noninterest income of $19.8 million for the three months ended March 31, 2021 declined $2.2 million as compared to the linked quarter. The decrease was primarily driven by a nonrecurring $2.3 million gain on sale of long-lived assets recognized in the fourth quarter of 2020 in connection with the sale of owned office space. This decrease, coupled with a decrease of $592 thousand in net gain on sale of loans was partially offset by increases of $755 thousand and $248 thousand in capital markets revenue and fees for wealth management services, respectively.

  • Noninterest expense of $37.7 million for the three months ended March 31, 2021 declined $921 thousand as compared to the linked quarter. The decrease was primarily driven by the lack of nonrecurring facility charges recorded in the fourth quarter of 2020 which included $1.6 million of impairment of long-lived assets and $801 thousand of disposal expense of leasehold improvements and equipment associated with the sale of owned office space and the early termination of leased office space.

    These prior quarter facility driven charges, which are detailed in the appendix to this earnings release as non-core items, were coupled with first quarter noninterest expense decreases of $900 thousand, $378 thousand, and $334 thousand in salaries and wages, advertising expense, and professional fees, respectively. Partially offsetting these decreases were $1.6 million of due diligence and merger-related expenses related to the pending merger with WSFS and increases of $1.0 million and $829 thousand in Pennsylvania bank shares tax and employee benefits, respectively.
  • A recovery of Provision of $5.2 million was recorded for the three months ended March 31, 2021 as compared to a recovery of Provision of $1.2 million for the three months ended December 31, 2020. The recovery of Provision of $5.2 million for the three months ended March 31, 2021 was primarily comprised of a $5.5 million recovery of provision for credit losses on loans and leases, partially offset by a $259 thousand provision for credit losses on off-balance sheet exposures. The difference in Provision between the two periods was driven by changes in current and forward-looking economic assumptions, as well as projected prepayments, included in the estimation of expected credit losses on loans and leases as of March 31, 2021 as compared to December 31, 2020. Net loan and lease charge-offs for the first quarter of 2021 totaled $642 thousand, a decrease of $1.7 million as compared to $2.3 million for the fourth quarter of 2020.

  • The effective tax rate for the first quarter of 2021 increased to 22.93% as compared to 20.86% for the fourth quarter of 2020. The increase in effective tax rate was primarily due to a $323 thousand discrete tax item related to non-deductible merger-related expenses recognized in the first quarter of 2021.

Results of Operations – First Quarter 2021 Compared to First Quarter 2020

  • Net income for the three months ended March 31, 2021 was $17.1 million, or $0.85 diluted earnings per share, as compared to a net loss of $11.4 million, or $(0.56) diluted earnings per share, for the three months ended March 31, 2020. Net interest income for the three months ended March 31, 2021 was $34.8 million, a decrease of $1.6 million as compared to the same period in 2020. A recovery of Provision of $5.2 million was recorded for the three months ended March 31, 2021 as compared to a Provision of $35.4 million for the three months ended March 31, 2020, a difference of $40.6 million. The difference in Provision between the two periods was driven by the current and forward-looking economic impacts of the COVID-19 pandemic included in the estimation of expected credit losses on loans and leases as of March 31, 2021 as compared to March 31, 2020. Total noninterest income increased $1.5 million, total noninterest expense increased $4.3 million, and income tax expense increased $8.0 million for the three months ended March 31, 2021 as compared to the three months ended March 31, 2020.

  • Net interest income for the three months ended March 31, 2021 was $34.8 million, a decrease of $1.6 million as compared to the same period in 2020. Tax-equivalent net interest income for the three months ended March 31, 2021 was $34.9 million, a decrease of $1.6 million as compared to the same period in 2020. Tax-equivalent net interest income for the first quarter of 2021 was positively impacted by the accretion of purchase accounting fair value marks of $515 thousand as compared to $949 thousand for the same period in 2020. Excluding the effects of these purchase accounting fair value marks, the adjusted tax-equivalent net interest income for the three months ended March 31, 2021 was $34.3 million, a decrease of $1.1 million as compared to the same period in 2020. 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 3.16% for the three months ended March 31, 2021 as compared to 3.38% for the same period in 2020. Adjusting for the impacts of the accretion of purchase accounting fair value marks, the adjusted tax-equivalent net interest margin was 3.11% for the three months ended March 31, 2021 as compared to 3.29% for the same period in 2020. A reconciliation of this and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release.

    The change in tax-equivalent net interest income adjusted for purchase accounting included decreases of $7.8 million, $6.3 million, $443 thousand, and $132 thousand in tax-equivalent interest and fees earned on loans and leases, interest paid on deposits, interest expense on short-term borrowings, and tax-equivalent interest income on available for sale investment securities, respectively, for the three months ended March 31, 2021 as compared to the same period in 2020.

    Tax-equivalent interest and fees earned on loans and leases for the three months ended March 31, 2021 decreased $8.2 million as compared to the same period in 2020. The tax-equivalent yield on average loans and leases for the three months ended March 31, 2021 was 3.90%, a 72 basis point decrease as compared to the same period in 2020. Average loans and leases decreased $131.2 million for the three months ended March 31, 2021 as compared to the same period in 2020.

    Tax-equivalent interest income on available for sale investment securities for the three months ended March 31, 2021 decreased $132 thousand as compared to the same period in 2020. The tax-equivalent yield on average available for sale investment securities for the three months ended March 31, 2021 was 1.63%, a 76 basis point decrease as compared to the same period in 2020. Average available for sale investment securities increased $216.5 million for the three months ended March 31, 2021 as compared to the same period in 2020.

    Interest expense on deposits for the three months ended March 31, 2021 decreased $6.2 million as compared to the same period in 2020. The rate paid on average interest-bearing deposits for the three months ended March 31, 2021 was 0.22%, an 86 basis point decrease as compared to the same period in 2020. Average interest-bearing deposits for the three months ended March 31, 2021 decreased $240.7 million as compared to the same period in 2020.

    Interest expense on short-term borrowings for the three months ended March 31, 2021 decreased $443 thousand as compared to the same period in 2020. The decrease was primarily due to a $108.6 million decrease in average short-term borrowings for the three months ended March 31, 2021 as compared to the same period in 2020, coupled with a 117 basis point decrease in the rate paid for the three months ended March 31, 2021 as compared to the same period in 2020.
  • Noninterest income of $19.8 million for the three months ended March 31, 2021 represented a $1.5 million increase over the same period in 2020. The increase was driven by increases of $1.9 million and $1.7 million in other operating income and fees for wealth management services, respectively, partially offset by decreases of $765 thousand and $532 thousand in capital markets revenue and net gain on sale of loans, respectively. The $1.9 million increase in other operating income was primarily due to a $978 thousand loss on trading securities recorded in the first quarter of 2020 due to market fluctuations affecting the Corporation's executive and director supplemental retirement plan assets, as compared to a $137 thousand gain on trading securities recorded in the first quarter of 2021.

  • Noninterest expense of $37.7 million for the three months ended March 31, 2021 represented a $4.3 million increase over the same period in 2020. Increases of $2.5 million, $1.6 million, and $633 thousand in other operating expenses, merger related expenses, and Pennsylvania bank shares tax expense, respectively, were partially offset by decreases of $225 thousand, $189 thousand, $159 thousand, and $123 thousand in advertising expense, furniture, fixtures and equipment expense, salaries and wages, and occupancy and bank premises expense, respectively. The $2.5 million increase in other operating expenses was driven by a $1.9 million increase in deferred compensation expense as market fluctuations resulted in a $1.1 million reduction in expense in the first quarter of 2020 as compared to $801 thousand of expense in the first quarter of 2021.

  • A recovery of Provision of $5.2 million was recorded for the three months ended March 31, 2021 as compared to a Provision of $35.3 million for the three months ended March 31, 2020, a decrease of $40.6 million. The difference in Provision between the two periods was driven by changes in the current and forward-looking economic impacts of the COVID-19 pandemic included in the estimation of expected credit losses on loans and leases as of March 31, 2021 as compared to March 31, 2020. Net loan and lease charge-offs for the first quarter of 2021 totaled $642 thousand, a decrease of $3.4 million as compared to $4.1 million for the first quarter in 2020.

  • The effective tax rate for the first quarter of 2021 increased to 22.93% as compared to 20.94% for the first quarter of 2020. The increase in effective tax rate was primarily due to a $323 thousand discrete tax item related to non-deductible merger-related expenses recognized in the first quarter of 2021.

Financial Condition – March 31, 2021 Compared to December 31, 2020

  • Total assets as of March 31, 2021 were $4.91 billion, a decrease of $517.5 million from December 31, 2020. The decrease was primarily driven by decreases of $436.0 million, $48.9 million, and $30.8 million in available for sale investment securities, cash balances, and other assets, respectively.

  • Available for sale investment securities as of March 31, 2021 totaled $739.0 million, a decrease of $436.0 million from December 31, 2020. The decrease was primarily due to the maturing, in January 2021, of $500.0 million of short-term U.S. Treasury securities included on the balance sheet as of December 31, 2020, partially offset by increases of $43.5 million and $17.3 million of mortgage-backed securities and U.S. Government and agency securities, respectively.

  • Total portfolio loans and leases of $3.63 billion as of March 31, 2021 increased $4.8 million as compared to December 31, 2020. Increases of $40.4 million, $26.2 million and $3.6 million in commercial and industrial loans, construction loans and residential mortgage junior liens, respectively, were partially offset by decreases of $27.3 million, $18.8 million, $11.9 million and $7.1 million in nonowner-occupied commercial mortgages, residential mortgage 1st liens, home equity lines of credit and leases, respectively.

    As of March 31, 2021, 31 consumer loans and leases in the amount of $4.5 million and 42 commercial loans in the amount of $61.5 million are within a deferral period under the Bank's modification programs, the total comprising 1.8% of the Bank’s portfolio loans and leases. Of those commercial loans within a deferral period, $57.0 million, or 92.6% of deferred commercial loans, continue to make interest-only payments.
  • The ACL on loans and leases was $47.6 million as of March 31, 2021 as compared to an ACL on loans and leases of $53.7 million as of December 31, 2020, a decrease of $6.1 million. The difference in ACL on loans and leases between the two periods was driven by the current and forward-looking economic impacts of the COVID-19 pandemic, as well as projected prepayments, included in the estimation of expected credit losses on loans and leases as of March 31, 2021 as compared to December 31, 2020.

  • Deposits of $3.90 billion as of March 31, 2021 decreased $474.0 million from December 31, 2020. The decrease was primarily driven by decreases of $213.9 million, $204.4 million, and $37.1 million in interest-bearing demand accounts, wholesale non-maturity deposits, and noninterest bearing deposits, respectively, partially offset by an increase of $37.5 million in money market accounts. The decrease in wholesale non-maturity deposits was primarily due to a decrease of approximately $200.0 million of wholesale deposits in the first quarter of 2021, which was used to partially fund the purchase of $500.0 million of short-term U.S. Treasury securities included on the balance sheet as of December 31, 2020. The decrease in interest-bearing demand deposits was primarily driven by management's active management of excess liquidity in this current interest rate environment.

  • Borrowings of $220.9 million as of March 31, 2021, which include short-term borrowings, long-term FHLB advances, subordinated notes and junior subordinated debentures, decreased $12.0 million from December 31, 2020, primarily due to a decrease of $12.1 million in short-term borrowings.

  • Wealth assets totaled $20.06 billion as of March 31, 2021, an increase of $1.08 billion from December 31, 2020. As of March 31, 2021, wealth assets consisted of $12.80 billion of wealth assets where fees are set at fixed amounts, an increase of $946.3 million from December 31, 2020, and $7.26 billion of wealth assets where fees are predominantly determined based on the market value of the assets held in their accounts, an increase of $136.5 million from December 31, 2020.

  • The capital ratios for the Bank and the Corporation, as of March 31, 2021, as shown in the attached tables, indicate regulatory capital levels in excess of the regulatory minimums and the levels necessary for the Bank to be considered “well capitalized.” In September 2020, the U.S. banking agencies issued a final rule that provides banking organizations with an alternative option to delay for two years an estimate of CECL’s effect on regulatory capital, relative to the incurred loss methodology’s effect on regulatory capital, followed by a three-year transition period. This final rule is consistent with the interim final rule issued by the U.S. banking agencies in March 2020. The current and prior quarter ratios reflect the Corporation's election of the five-year transition provision.

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 “believe,” “intend,” “expect,” “anticipate,” “strategy,” “plan,” “estimate,” “approximately,” “target,” “project,” “propose,” “possible,” “potential,” “should” and similar expressions, among others, generally identify forward-looking statements. Such forward-looking statements are based on various assumptions (many of which are beyond the control of the Corporation) and are subject to risks and uncertainties (which change over time) and other factors which could cause actual results to differ materially from those currently anticipated. Such risks and uncertainties include, but are not limited to, the possibility that the proposed acquisition with WSFS does not close when expected or at all because required regulatory, stockholder or other approvals and other conditions to closing are not received or satisfied on a timely basis or at all; the delay in or failure to close for any other reason; the outcome of any legal proceedings that may be instituted against the Corporation; the occurrence of any event, change or other circumstance that could give rise to the right of one or both parties to terminate the merger agreement providing for the merger; the risk that the businesses of WSFS and the Corporation will not be integrated successfully; the possibility that the cost savings and any synergies or other anticipated benefits from the proposed acquisition may not be fully realized or may take longer to realize than expected; disruption from the proposed acquisition making it more difficult to maintain relationships with employees, customers or other parties with whom the Corporation has business relationships; diversion of management time on merger-related issues; the reaction to the proposed transaction of our customers, employees and counterparties; uncertainty as to the extent of the duration, scope, and impacts of the COVID-19 pandemic; and other factors, many of which are beyond the control of the Corporation. We refer you to the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Corporation's Annual Report on Form 10-K for the year ended December 31, 2020 and any updates to those risk factors set forth in the Corporation’s Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other filings, which have been filed by the Corporation with the SEC and are available on the SEC’s website at www.sec.gov. All forward-looking statements, expressed or implied, included herein are expressly qualified in their entirety by the cautionary statements contained or referred to herein. The actual results or developments anticipated may not be realized or, even if substantially realized, they may not have the expected consequences to or effects on the Corporation or its businesses or operations. We caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date on which they are made. The Corporation undertakes no obligation, and specifically declines any obligation, to revise or update any forward-looking statements, whether as a result of new information, future developments or otherwise, except as specifically required by law.

Important Additional Information will be Filed with the SEC

In connection with the proposed merger transaction, WSFS has filed with the U.S. Securities and Exchange Commission (the “SEC”) a Registration Statement on Form S-4 (SEC File No. 333-255329) which includes a joint proxy statement of WSFS and the Corporation and a prospectus of WSFS (the “Joint Proxy/Prospectus”), and each of WSFS and the Corporation may file with the SEC other relevant documents concerning the proposed transaction. The definitive Joint Proxy/Prospectus will be mailed to stockholders of WSFS and the Corporation. SHAREHOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT AND THE JOINT PROXY/PROSPECTUS REGARDING THE PROPOSED TRANSACTION CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC BY WSFS AND THE CORPORATION, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT WSFS, THE CORPORATION AND THE PROPOSED TRANSACTION.

Free copies of the Registration Statement and the Joint Proxy/Prospectus, as well as other filings containing information about WSFS and the Corporation, may be obtained at the SEC’s website (http://www.sec.gov) when they are filed. You will also be able to obtain these documents, when they are filed, free of charge, by directing a request to WSFS Financial Corporation, WSFS Bank Center, 500 Delaware Avenue, Wilmington, Delaware 19801 or by directing a request to Bryn Mawr Bank Corporation, 801 Lancaster Avenue, Bryn Mawr, Pennsylvania 19010.

Participants in the Solicitation

WSFS, the Corporation and certain of their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from the stockholders of WSFS or the Corporation in respect of the proposed transaction. Information about WSFS’s directors and executive officers is available in its proxy statement for its 2020 annual meeting of stockholders, which was filed with the SEC on March 23, 2020, and other documents filed by WSFS with the SEC. Information regarding the Corporation’s directors and executive officers is available in its proxy statement for its 2020 annual meeting of stockholders, which was filed with the SEC on March 6, 2020, and other documents filed by the Corporation with the SEC. Information regarding the persons who may, under the rules of the SEC, be deemed participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the Joint Proxy/Prospectus and other relevant materials to be filed with the SEC when they become available. Free copies of this document may be obtained as described in the preceding paragraph.


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,
2021
 December 31,
2020
 September 30,
2020
 June 30,
2020
 March 31,
2020
 
Consolidated Balance Sheet (selected items)          
Interest-bearing deposits with banks$37,089  $85,026  $241,763  $448,113  $69,239  
Investment securities 761,877   1,198,346   584,529   550,974   537,592  
Loans held for sale 3,210   6,000   4,574   4,116   2,785  
Portfolio loans and leases 3,633,235   3,628,411   3,676,684   3,722,165   3,767,166  
Allowance for credit losses ("ACL") on loans and leases (47,562)  (53,709)  (56,428)  (54,974)  (54,070) 
Goodwill and other intangible assets 198,738   199,576   200,445   201,315   202,225  
Total assets 4,914,508   5,432,022   5,046,939   5,271,311   4,923,033  
Deposits - interest-bearing 2,537,534   2,974,411   2,783,188   3,026,152   2,850,986  
Deposits - non-interest-bearing 1,364,716   1,401,843   1,230,391   1,217,496   927,922  
Short-term borrowings 60,027   72,161   23,456   28,891   162,045  
Long-term FHLB advances 39,941   39,906   44,872   44,837   47,303  
Subordinated notes 98,928   98,883   98,839   98,794   98,750  
Jr. subordinated debentures 21,983   21,935   21,889   21,843   21,798  
Total liabilities 4,291,412   4,809,700   4,434,322   4,667,637   4,329,854  
Total shareholders' equity 623,096   622,322   612,617   603,674   593,179  
           
Average Balance Sheet (selected items)          
Interest-bearing deposits with banks$110,972  $245,904  $336,225  $195,966  $50,330  
Investment securities 760,625   701,258   574,094   542,321   542,876  
Loans held for sale 1,203   2,836   4,393   3,805   2,319  
Portfolio loans and leases 3,606,011   3,654,736   3,697,102   3,936,227   3,736,067  
Total interest-earning assets 4,478,811   4,604,734   4,611,814   4,678,319   4,331,592  
Goodwill and intangible assets 199,208   200,060   200,931   201,823   202,760  
Total assets 4,968,542   5,124,702   5,157,588   5,226,074   4,844,918  
Deposits - interest-bearing 2,613,004   2,765,941   2,891,652   2,969,113   2,853,712  
Short-term borrowings 32,020   29,130   29,913   136,816   140,585  
Long-term FHLB advances 39,921   43,634   44,849   46,161   47,335  
Subordinated notes 98,904   98,860   98,815   98,770   98,725  
Jr. subordinated debentures 21,955   21,905   21,859   21,814   21,768  
Total interest-bearing liabilities 2,805,804   2,959,470   3,087,088   3,272,674   3,162,125  
Total liabilities 4,343,552   4,507,444   4,548,395   4,625,511   4,229,908  
Total shareholders' equity 624,990   617,258   609,193   600,563   615,010  
           
Income Statement          
Net interest income$34,781  $35,037  $35,032  $37,385  $36,333  
(Recovery of) provision for credit losses (5,246)  (1,209)  4,101   3,435   35,350  
Noninterest income 19,841   22,006   21,099   20,566   18,300  
Noninterest expense 37,703   38,624   35,197   35,503   33,403  
Income tax expense (benefit) 5,082   4,094   3,709   4,010   (2,957) 
Net income (loss) 17,083   15,534   13,124   15,003   (11,163) 
Net loss attributable to noncontrolling interest -   (3)  (40)  (32)  -  
Net income (loss) attributable to Bryn Mawr Bank Corporation 17,083   15,537   13,164   15,035   (11,163) 
Basic earnings per share 0.86   0.78   0.66   0.75   (0.56) 
Diluted earnings per share 0.85   0.78   0.66   0.75   (0.56) 
Net income (loss) (core) (1) 18,707   15,518   13,164   15,399   (11,163) 
Basic earnings per share (core) (1) 0.94   0.78   0.66   0.77   (0.56) 
Diluted earnings per share (core) (1) 0.93   0.77   0.66   0.77   (0.56) 
Dividends paid or accrued per share 0.27   0.27   0.27   0.26   0.26  
Profitability Indicators          
Return on average assets 1.39%  1.21%  1.02%  1.16%  -0.93% 
Return on average equity 11.09%  10.01%  8.60%  10.07%  -7.30% 
Return on tangible equity(1) 16.87%  15.44%  13.47%  15.86%  -10.17% 
Return on tangible equity (core)(1) 18.42%  15.42%  13.47%  16.23%  -10.17% 
Return on average assets (core)(1) 1.53%  1.20%  1.02%  1.19%  -0.93% 
Return on average equity (core)(1) 12.14%  10.00%  8.60%  10.31%  -7.30% 
Tax-equivalent net interest margin 3.16%  3.04%  3.03%  3.22%  3.38% 
Efficiency ratio(1) 64.48%  64.81%  61.16%  58.75%  59.46% 
Share Data          
Closing share price$45.51  $30.60  $24.87  $27.66  $28.38  
Book value per common share$31.34  $31.18  $30.70  $30.29  $29.78  
Tangible book value per common share(1)$21.39  $21.22  $20.69  $20.23  $19.66  
Price / book value 145.21%  98.14%  81.01%  91.32%  95.30% 
Price / tangible book value(1) 212.76%  144.20%  120.20%  136.73%  144.35% 
Weighted average diluted shares outstanding 20,050,736   20,027,658   20,021,617   20,008,219   20,053,159  
Shares outstanding, end of period 19,878,993   19,960,294   19,958,186   19,927,893   19,921,524  
Wealth Management Information:          
Wealth assets under mgmt, administration, supervision and brokerage (2)$20,059,371  $18,976,544  $17,244,307  $17,012,903  $15,593,732  
Fees for wealth management services$12,836  $12,588  $11,707  $9,069  $11,168  
Capital Ratios(3)          
Bryn Mawr Trust Company ("BMTC")          
Tier I capital to risk weighted assets ("RWA") 12.08%  11.53%  12.02%  11.68%  11.10% 
Total capital to RWA 13.18%  12.75%  13.27%  12.93%  12.33% 
Tier I leverage ratio 9.47%  8.79%  9.16%  8.75%  9.12% 
Tangible equity ratio (1) 9.41%  8.27%  9.36%  8.67%  8.98% 
Common equity Tier I capital to RWA 12.08%  11.53%  12.02%  11.68%  11.10% 
           
Bryn Mawr Bank Corporation ("BMBC")          
Tier I capital to RWA 12.15%  11.86%  11.48%  11.27%  10.80% 
Total capital to RWA 15.73%  15.55%  15.19%  15.14%  14.62% 
Tier I leverage ratio 9.53%  9.04%  8.75%  8.44%  8.88% 
Tangible equity ratio (1) 9.02%  8.09%  8.52%  7.95%  8.30% 
Common equity Tier I capital to RWA 11.58%  11.29%  10.92%  10.71%  10.25% 
           
Asset Quality Indicators          
Net loan and lease charge-offs ("NCO"s)$642  $2,340  $2,187  $3,398  $4,073  
           
Loans and leases risk-rated Special Mention$74,595  $68,892  $48,267  $55,171  $14,833  
Total classified loans and leases 129,120   153,011   175,501   154,687   60,972  
Total criticized loans and leases$203,715  $221,903  $223,768  $209,858  $75,805  
           
Nonperforming loans and leases ("NPL"s)$5,197  $5,306  $8,597  $8,418  $7,557  
Other real estate owned ("OREO") -   -   -   -   -  
Total nonperforming assets ("NPA"s)$ 5,197  $ 5,306  $ 8,597  $ 8,418  $ 7,557  
           
Nonperforming loans and leases 30 or more days past due$1,903  $2,001  $4,153  $3,223  $3,380  
Performing loans and leases 30 to 89 days past due 5,396   10,847   9,351   10,022   19,930  
Performing loans and leases 90 or more days past due -   -   -   -   -  
Total delinquent loans and leases$ 7,299  $ 12,848  $ 13,504  $ 13,245  $ 23,310  
           
Delinquent loans and leases to total loans and leases 0.20%  0.35%  0.37%  0.36%  0.62% 
Delinquent performing loans and leases to total loans and leases 0.15%  0.30%  0.25%  0.27%  0.53% 
NCOs / average loans and leases (annualized) 0.07%  0.25%  0.24%  0.35%  0.44% 
NPLs / total portfolio loans and leases 0.14%  0.15%  0.23%  0.23%  0.20% 
NPAs / total loans and leases and OREO 0.14%  0.15%  0.23%  0.23%  0.20% 
NPAs / total assets 0.11%  0.10%  0.17%  0.16%  0.15% 
ACL on loans and leases / NPLs 915.18%  1012.23%  656.37%  653.05%  715.50% 
ACL / classified loans and leases 36.84%  35.10%  32.15%  35.54%  88.68% 
ACL / criticized loans and leases 23.35%  24.20%  25.22%  26.20%  71.33% 
ACL on loans and leases / portfolio loans 1.31%  1.48%  1.53%  1.48%  1.44% 
ACL on loans and leases for originated loans and leases / Originated loans and leases (1) 1.33%  1.50%  1.56%  1.51%  1.47% 
(Total ACL on loans and leases + Loan mark) / Total Gross portfolio loans and leases (1) 1.46%  1.65%  1.73%  1.69%  1.68% 
           
Troubled debt restructurings ("TDR"s) included in NPLs$1,480  $1,737  $1,393  $1,792  $3,248  
TDRs in compliance with modified terms 6,967   7,046   8,590   10,013   4,852  
Total TDRs$ 8,447  $ 8,783  $ 9,983  $ 11,805  $ 8,100  
           
(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. Beginning with the March 31, 2020 call report, the capital 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)          
           
 March 31,
2021
 December 31,
2020
 September 30,
2020
 June 30,
2020
 March 31,
2020
 
Assets          
Cash and due from banks$10,311  $11,287  $15,670  $16,408  $17,803  
Interest-bearing deposits with banks 37,089   85,026   241,763   448,113   69,239  
  Cash and cash equivalents 47,400   96,313   257,433   464,521   87,042  
Investment securities, available for sale 738,974   1,174,964   564,774   530,581   516,466  
Investment securities, held to maturity 14,126   14,759   11,725   12,592   13,369  
Investment securities, trading 8,777   8,623   8,030   7,801   7,757  
Loans held for sale 3,210   6,000   4,574   4,116   2,785  
Portfolio loans and leases, originated 3,405,128   3,380,727   3,396,068   3,422,890   3,424,601  
Portfolio loans and leases, acquired 228,107   247,684   280,616   299,275   342,565  
  Total portfolio loans and leases 3,633,235   3,628,411   3,676,684   3,722,165   3,767,166  
Less: Allowance for credit losses on originated loan and leases (45,285)  (50,783)  (52,968)  (51,659)  (50,365) 
Less: Allowance for credit losses on acquired loan and leases (2,277)  (2,926)  (3,460)  (3,315)  (3,705) 
  Total allowance for credit losses on loans and leases (47,562)  (53,709)  (56,428)  (54,974)  (54,070) 
    Net portfolio loans and leases 3,585,673   3,574,702   3,620,256   3,667,191   3,713,096  
Premises and equipment 55,510   56,662   60,369   61,778   63,144  
Operating lease right-of-use assets 33,848   34,601   38,536   39,348   40,157  
Accrued interest receivable 15,058   15,440   16,609   15,577   12,017  
Mortgage servicing rights 2,493   2,626   2,881   3,440   4,115  
Bank owned life insurance 60,721   60,393   60,072   59,728   59,399  
Federal Home Loan Bank ("FHLB") stock 5,986   12,666   4,506   4,506   11,928  
Goodwill 184,012   184,012   184,012   184,012   184,012  
Intangible assets 14,726   15,564   16,433   17,303   18,213  
Other investments 17,811   17,742   17,129   17,055   16,786  
Other assets 126,183   156,955   179,600   181,762   172,747  
      Total assets$4,914,508  $5,432,022  $5,046,939  $5,271,311  $4,923,033  
           
Liabilities          
Deposits          
  Noninterest-bearing$1,364,716  $1,401,843  $1,230,391  $1,217,496  $927,922  
  Interest-bearing 2,537,534   2,974,411   2,783,188   3,026,152   2,850,986  
    Total deposits 3,902,250   4,376,254   4,013,579   4,243,648   3,778,908  
Short-term borrowings 60,027   72,161   23,456   28,891   162,045  
Long-term FHLB advances 39,941   39,906   44,872   44,837   47,303  
Subordinated notes 98,928   98,883   98,839   98,794   98,750  
Jr. subordinated debentures 21,983   21,935   21,889   21,843   21,798  
Operating lease liabilities 39,543   40,284   42,895   43,693   44,482  
Accrued interest payable 6,358   6,277   7,984   7,907   7,230  
Other liabilities 122,382   154,000   180,808   178,024   169,338  
      Total liabilities 4,291,412   4,809,700   4,434,322   4,667,637   4,329,854  
           
Shareholders' equity          
Common stock 24,715   24,714   24,710   24,662   24,655  
Paid-in capital in excess of par value 382,202   381,653   380,770   380,167   379,495  
Less: common stock held in treasury, at cost (91,774)  (89,164)  (89,100)  (88,612)  (88,540) 
Accumulated other comprehensive income, net of tax 154   8,948   10,139   9,019   8,869  
Retained earnings 308,569   296,941   286,865   279,165   269,395  
Total Bryn Mawr Bank Corporation shareholders' equity 623,866   623,092   613,384   604,401   593,874  
Noncontrolling interest (770)  (770)  (767)  (727)  (695) 
    Total shareholders' equity 623,096   622,322   612,617   603,674   593,179  
      Total liabilities and shareholders' equity$4,914,508  $5,432,022  $5,046,939  $5,271,311  $4,923,033  
           


Bryn Mawr Bank Corporation         
Supplemental Balance Sheet Information (unaudited)         
(dollars in thousands)         
 Portfolio Loans and Leases as of
 March 31,
2021
 December 31,
2020
 September 30,
2020
 June 30,
2020
 March 31,
2020
Commercial real estate - nonowner-occupied$1,408,240  $1,435,575  $1,382,757  $1,375,904  $1,354,416 
Commercial real estate - owner-occupied 578,747   578,509   568,219   542,688   530,667 
Home equity lines of credit 157,418   169,337   179,125   194,767   209,278 
Residential mortgage - 1st liens 602,584   621,369   660,923   695,270   710,495 
Residential mortgage - junior liens 27,400   23,795   26,150   33,644   35,583 
Construction 187,472   161,308   186,415   212,374   221,116 
  Total real estate loans 2,961,861   2,989,893   3,003,589   3,054,647   3,061,555 
Commercial & Industrial 486,824   446,438   465,315   457,529   491,298 
Consumer 39,226   39,683   47,043   43,762   45,951 
Leases 145,324   152,397   160,737   166,227   168,362 
  Total non-real estate loans and leases 671,374   638,518   673,095   667,518   705,611 
    Total portfolio loans and leases$3,633,235  $3,628,411  $3,676,684  $3,722,165  $3,767,166 
          
          
 Nonperforming Loans and Leases as of
 March 31,
2021
 December 31,
2020
 September 30,
2020
 June 30,
2020
 March 31,
2020
Commercial real estate - nonowner-occupied$56  $57  $849  $245  $181 
Commercial real estate - owner-occupied 1,355   1,659   3,597   4,046   2,543 
Home equity lines of credit 532   729   890   915   758 
Residential mortgage - 1st liens 645   99   862   912   1,080 
Residential mortgage - junior liens 184   85   50   72   79 
  Total nonperforming real estate loans 2,772   2,629   6,248   6,190   4,641 
Commercial & Industrial 1,490   1,775   1,784   1,973   2,692 
Consumer 40   30   31   36   52 
Leases 895   872   534   219   172 
  Total nonperforming non-real estate loans and leases 2,425   2,677   2,349   2,228   2,916 
    Total nonperforming portfolio loans and leases$5,197  $5,306  $8,597  $8,418  $7,557 
          
          
 Net Loan and Lease Charge-Offs (Recoveries) for the Three Months Ended
 March 31,
2021
 December 31,
2020
 September 30,
2020
 June 30,
2020
 March 31,
2020
Commercial real estate - nonowner-occupied$-  $240  $(2) $(4) $(2)
Commercial real estate - owner-occupied 189   382   494   1,234   - 
Home equity lines of credit -   -   -   (4)  114 
Residential mortgage - 1st liens 1   -   (13)  420   727 
Residential mortgage - junior liens -   -   -   -   - 
Construction (1)  (1)  (1)  (1)  (1)
  Total net charge-offs of real estate loans 189   621   478   1,645   838 
Commercial & Industrial (54)  897   1,522   499   612 
Consumer 107   409   134   238   261 
Leases 400   413   53   1,016   2,362 
  Total net charge-offs of non-real estate loans and leases 453   1,719   1,709   1,753   3,235 
    Total net charge-offs$642  $2,340  $2,187  $3,398  $4,073 



Bryn Mawr Bank Corporation         
Supplemental Balance Sheet Information (unaudited)         
(dollars in thousands)         
 Investment Securities Available for Sale, at Fair Value
 March 31,
2021
 December 31,
2020
 September 30,
2020
 June 30,
2020
 March 31,
2020
U.S. Treasury securities$100  $500,100 $100 $100 $101
Obligations of the U.S. Government and agencies 110,413   93,098  90,928  114,149  106,679
State & political subdivisions - tax-free 2,168   2,171  3,178  4,583  4,562
Mortgage-backed securities 497,328   453,857  431,822  377,204  374,775
Collateralized mortgage obligations 17,073   19,263  22,253  25,873  29,699
Collateralized loan obligations 99,666   94,404  6,500  -  -
Corporate bonds 11,576   11,421  9,343  8,022  -
Other debt securities 650   650  650  650  650
  Total investment securities available for sale, at fair value$738,974  $1,174,964 $564,774 $530,581 $516,466
          
          
 Unrealized Gain (Loss) on Investment Securities Available for Sale
 March 31,
2021
 December 31,
2020
 September 30,
2020
 June 30,
2020
 March 31,
2020
U.S. Treasury securities$-  $5 $- $- $1
Obligations of the U.S. Government and agencies (2,597)  649  995  1,103  1,036
State & political subdivisions - tax-free 16   22  27  30  10
Mortgage-backed securities 8,957   12,282  12,901  11,683  11,554
Collateralized mortgage obligations 522   583  662  702  778
Corporate bonds 576   421  343  22  -
  Total unrealized gains on investment securities available for sale$7,625  $13,866 $14,928 $13,540 $13,379
          
          
 Deposits
 March 31,
2021
 December 31,
2020
 September 30,
2020
 June 30,
2020
 March 31,
2020
Interest-bearing deposits:         
  Interest-bearing demand$671,854  $885,802 $815,561 $910,441 $750,127
  Money market 1,201,115   1,163,620  1,199,429  1,239,523  1,133,952
  Savings 286,124   282,406  245,167  249,636  247,799
  Retail time deposits 301,702   331,527  366,245  400,186  406,828
  Wholesale non-maturity deposits 70,605   275,011  77,356  146,463  198,888
  Wholesale time deposits 6,134   36,045  79,430  79,903  113,392
    Total interest-bearing deposits 2,537,534   2,974,411  2,783,188  3,026,152  2,850,986
  Noninterest-bearing deposits 1,364,716   1,401,843  1,230,391  1,217,496  927,922
      Total deposits$3,902,250  $4,376,254 $4,013,579 $4,243,648 $3,778,908
          


Bryn Mawr Bank Corporation         
Detailed Income Statements (unaudited)         
(dollars in thousands, except per share data)         
 For the Three Months Ended
 March 31,
2021
 December 31,
2020
 September 30,
2020
 June 30,
2020
 March 31,
2020
Interest income:         
Interest and fees on loans and leases$34,578  $35,632  $36,799  $40,690  $42,795 
Interest on cash and cash equivalents 22   62   85   37   111 
Interest on investment securities 3,050   2,717   2,658   2,894   3,201 
  Total interest income 37,650   38,411   39,542   43,621   46,107 
Interest expense:         
Interest on deposits 1,424   1,891   2,967   4,476   7,637 
Interest on short-term borrowings 10   9   8   232   453 
Interest on FHLB advances 203   226   234   155   244 
Interest on jr. subordinated debentures 198   205   207   229   295 
Interest on subordinated notes 1,034   1,043   1,094   1,144   1,145 
Total interest expense 2,869   3,374   4,510   6,236   9,774 
  Net interest income 34,781   35,037   35,032   37,385   36,333 
(Recovery of) provision for credit losses ("PCL") (5,246)  (1,209)  4,101   3,435   35,350 
  Net interest income after PCL 40,027   36,246   30,931   33,950   983 
Noninterest income:         
Fees for wealth management services 12,836   12,588   11,707   9,069   11,168 
Insurance commissions 1,464   1,393   1,682   1,303   1,533 
Capital markets revenue 1,596   841   3,314   2,975   2,361 
Service charges on deposits 696   756   663   603   846 
Loan servicing and other fees 304   360   373   452   461 
Net gain on sale of loans 250   842   1,021   3,134   782 
Net gain on sale of long-lived assets 6   2,297   -   -   - 
Net gain (loss) on sale of other real estate owned -   -   -   -   148 
Dividends on FHLB and FRB stocks 222   337   127   243   444 
Other operating income 2,467   2,592   2,212   2,787   557 
  Total noninterest income 19,841   22,006   21,099   20,566   18,300 
Noninterest expense:         
Salaries and wages 16,830   17,730   17,201   16,926   16,989 
Employee benefits 3,687   2,858   3,026   3,221   3,500 
Occupancy and bank premises 2,892   3,624   3,055   3,033   3,015 
Furniture, fixtures and equipment 2,242   2,400   2,481   2,120   2,431 
Impairment of long-lived assets -   1,605   -   -   - 
Advertising 176   554   458   196   401 
Amortization of intangible assets 838   869   870   910   918 
Due diligence, merger-related and merger integration expenses 1,646   -   -   -   - 
Professional fees 1,433   1,767   1,718   1,575   1,368 
Pennsylvania bank shares tax 749   (339)  115   116   116 
Data processing 1,404   1,501   1,403   1,479   1,394 
Other operating expenses 5,806   6,055   4,870   5,927   3,271 
  Total noninterest expense 37,703   38,624   35,197   35,503   33,403 
Income (loss) before income taxes 22,165   19,628   16,833   19,013   (14,120)
Income tax expense (benefit) 5,082   4,094   3,709   4,010   (2,957)
    Net income (loss)$17,083  $15,534  $13,124  $15,003  $(11,163)
Net (loss) attributable to noncontrolling interest -   (3)  (40)  (32)  - 
    Net income (loss) attributable to Bryn Mawr Bank Corporation$17,083  $15,537  $13,164  $15,035  $(11,163)
          
Per share data:         
Weighted average shares outstanding 19,907,873   19,958,567   19,945,634   19,926,737   20,053,159 
Dilutive common shares 142,863   69,091   75,983   81,482   - 
Weighted average diluted shares 20,050,736   20,027,658   20,021,617   20,008,219   20,053,159 
Basic earnings per common share$0.86  $0.78  $0.66  $0.75  $(0.56)
Diluted earnings per common share$0.85  $0.78  $0.66  $0.75  $(0.56)
Dividends paid or accrued per common share$0.27  $0.27  $0.27  $0.26  $0.26 
Effective tax rate 22.93%  20.86%  22.03%  21.09%  20.94%


Bryn Mawr Bank Corporation
Tax-Equivalent Net Interest Margin (unaudited)             
(dollars in thousands)
  For the Three Months Ended
  March 31, 2021December 31, 2020September 30, 2020June 30, 2020March 31, 2020
  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
Average BalanceInterest Income/ ExpenseAverage Rates Earned/ Paid
                 
Assets:                
Interest-bearing deposits with other banks $110,972 $22 0.08%$245,904 $62 0.10%$336,225 $85 0.10%$195,966 $37 0.08%$50,330 $111 0.89%
Investment securities - available for sale:                
    Taxable  735,508  2,947 1.62% 675,642  2,561 1.51% 550,199  2,562 1.85% 516,823  2,775 2.16% 516,244  3,065 2.39%
    Tax-exempt  2,170  14 2.62% 2,490  16 2.56% 3,690  23 2.48% 4,572  26 2.29% 4,909  28 2.29%
      Total investment                        securities - available
      for sale
  737,678  2,961 1.63% 678,132  2,577 1.51% 553,889  2,585 1.86% 521,395  2,801 2.16% 521,153  3,093 2.39%
                 
Investment securities - held to maturity  14,329  73 2.07% 15,093  57 1.50% 12,248  57 1.85% 13,126  73 2.24% 13,195  87 2.65%
Investment securities - trading  8,618  19 0.89% 8,033  86 4.26% 7,957  21 1.05% 7,800  24 1.24% 8,528  25 1.18%
                 
Loans and leases *  3,607,214  34,674 3.90% 3,657,572  35,734 3.89% 3,701,495  36,901 3.97% 3,940,032  40,779 4.16% 3,738,386  42,898 4.62%
                 
     Total interest-earning
      assets
  4,478,811  37,749 3.42% 4,604,734  38,516 3.33% 4,611,814  39,649 3.42% 4,678,319  43,714 3.76% 4,331,592  46,214 4.29%
                 
Cash and due from banks  10,824    13,192    16,557    16,263    12,479   
Less: allowance for credit losses on loans and leases (53,582)   (55,634)   (55,285)   (54,113)   (25,786)  
Other assets  532,489    562,410    584,502    585,605    526,633   
                 
     Total assets $4,968,542   $5,124,702   $5,157,588   $5,226,074   $4,844,918   
                 
Liabilities:                
                 
Interest-bearing deposits:                
   Savings, NOW and market
   rate deposits
 $2,178,730 $374 0.07%$2,285,807 $495 0.09%$2,282,591 $1,042 0.18%$2,313,150 $2,341 0.41%$2,197,279 $4,981 0.91%
   Wholesale deposits  117,710  257 0.89% 130,660  293 0.89% 223,527  465 0.83% 245,052  486 0.80% 253,322  977 1.55%
   Retail time deposits  316,564  793 1.02% 349,474  1,103 1.26% 385,534  1,460 1.51% 410,911  1,649 1.61% 403,111  1,679 1.68%
       Total interest-bearing
       deposits
  2,613,004  1,424 0.22% 2,765,941  1,891 0.27% 2,891,652  2,967 0.41% 2,969,113  4,476 0.61% 2,853,712  7,637 1.08%
                 
Borrowings:                
Short-term borrowings  32,020  10 0.13% 29,130  9 0.12% 29,913  8 0.11% 136,816  232 0.68% 140,585  453 1.30%
Long-term FHLB advances  39,921  203 2.06% 43,634  226 2.06% 44,849  234 2.08% 46,161  155 1.35% 47,335  244 2.07%
Subordinated notes  98,904  1,034 4.24% 98,860  1,043 4.20% 98,815  1,094 4.40% 98,770  1,144 4.66% 98,725  1,145 4.66%
Jr. subordinated debt  21,955  198 3.66% 21,905  205 3.72% 21,859  207 3.77% 21,814  229 4.22% 21,768  295 5.45%
      Total borrowings  192,800  1,445 3.04% 193,529  1,483 3.05% 195,436  1,543 3.14% 303,561  1,760 2.33% 308,413  2,137 2.79%
                 
      Total interest-bearing
       liabilities
  2,805,804  2,869 0.41% 2,959,470  3,374 0.45% 3,087,088  4,510 0.58% 3,272,674  6,236 0.77% 3,162,125  9,774 1.24%
                 
Noninterest-bearing deposits  1,345,253    1,267,795    1,220,570    1,126,139    894,264   
Other liabilities  192,495    280,179    240,737    226,698    173,519   
     Total noninterest-bearing
      liabilities
  1,537,748    1,547,974    1,461,307    1,352,837    1,067,783   
                 
     Total liabilities  4,343,552    4,507,444    4,548,395    4,625,511    4,229,908   
                 
Shareholders' equity  624,990    617,258    609,193    600,563    615,010   
                 
     Total liabilities and
      shareholders' equity
 $4,968,542   $5,124,702   $5,157,588   $5,226,074   $4,844,918   
                 
Net interest spread   3.01%  2.88%  2.84%  2.99%  3.05%
Effect of noninterest-bearing sources   0.15%  0.16%  0.19%  0.23%  0.33%
                 
Tax-equivalent net interest margin  $34,880 3.16% $35,142 3.04% $35,139 3.03% $37,478 3.22% $36,440 3.38%
                 
Tax-equivalent adjustment  $99 0.01% $105 0.01% $107 0.01% $93 0.01% $107 0.01%
                 
Supplemental Information Regarding Accretion of Fair Value Marks
  InterestIncrease (Decrease)Effect on Yield or RateInterestIncrease (Decrease)Effect on Yield or RateInterestIncrease (Decrease)Effect on Yield or Rate Increase (Decrease)Effect on Yield or Rate Increase (Decrease)Effect on Yield or Rate
Loans and leases Income$539 0.06% $921 0.10% $784 0.08% $1,017 0.10% $910 0.10%
Retail time deposits Expense$(58)-0.07% $(78)-0.09% $(96)-0.10% $(103)-0.10% $(118)-0.12%
Long-term FHLB advances Expense$35 0.36% $35 0.32% $34 0.30% $35 0.30% $34 0.29%
Jr. subordinated debt Expense$47 0.87% $46 0.84% $46 0.84% $45 0.83% $45 0.83%
Net interest income from fair value marks  $515   $918   $800   $1,040   $949  
Purchase accounting effect on tax-equivalent margin  0.05%  0.08%  0.07%  0.09%  0.09%
                 
* 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
 March 31,
2021
 December 31,
2020
 September 30,
2020
 June 30,
2020
 March 31,
2020
Reconciliation of Net Income to Net Income (core):         
Net income (loss) attributable to BMBC (a GAAP measure)$17,083  $15,537  $13,164  $15,035  $(11,163)
Less: Tax-effected non-core noninterest income:         
  Gain on sale of PPP loans -   -   -   (1,905)  - 
  BMT Investment Advisers wind-down costs -   -   -   1,744   - 
  Gain on sale of building -   (1,813)  -   -   - 
Add: Tax-effected non-core noninterest expense items:         
  Due diligence, merger-related and merger integration expenses 1,624   -   -   -   - 
  Voluntary years of service incentive program expenses -   -   -   -   - 
  BMT Investment Advisers wind-down costs -   -   -   100   - 
  Severance associated with staff reduction -   -   -   425   - 
  Gain on early lease termination -   (107)  -   -   - 
  Impairment of long-lived assets -   1,268   -   -   - 
  Disposal expense of premises and equipment -   633   -   -   - 
Net income (loss) (core) (a non-GAAP measure)$ 18,707  $ 15,518  $ 13,164  $ 15,399  $ (11,163)
          
Calculation of Basic and Diluted Earnings per Common Share (core):         
Weighted average common shares outstanding 19,907,873   19,958,567   19,945,634   19,926,737   20,053,159 
Dilutive common shares 142,863   69,091   75,983   81,482   - 
Weighted average diluted shares 20,050,736   20,027,658   20,021,617   20,008,219   20,053,159 
Basic earnings per common share (core) (a non-GAAP measure)$0.94  $0.78  $0.66  $0.77  $(0.56)
Diluted earnings per common share (core) (a non-GAAP measure)$0.93  $0.77  $0.66  $0.77  $(0.56)
          
Calculation of Return on Average Tangible Equity:         
Net income (loss) attributable to BMBC (a GAAP measure)$17,083  $15,537  $13,164  $15,035  $(11,163)
Add: Tax-effected amortization and impairment of intangible assets 662   687   687   719   725 
Net tangible income (numerator)$17,745  $16,224  $13,851  $15,754  $(10,438)
          
Average shareholders' equity$624,990  $617,258  $609,193  $600,563  $615,010 
Less: Average Noncontrolling interest 770   769   739   696   695 
Less: Average goodwill and intangible assets (199,208)  (200,060)  (200,931)  (201,823)  (202,760)
Net average tangible equity (denominator)$426,552  $417,967  $409,001  $399,436  $412,945 
          
Return on tangible equity (a non-GAAP measure) 16.87%  15.44%  13.47%  15.86%  -10.17%
          
Calculation of Return on Average Tangible Equity (core):         
Net income (loss) (core) (a non-GAAP measure)$18,707  $15,518  $13,164  $15,399  $(11,163)
Add: Tax-effected amortization and impairment of intangible assets 662   687   687   719   725 
Net tangible income (loss) (core) (numerator)$19,369  $16,205  $13,851  $16,118  $(10,438)
          
Average shareholders' equity$624,990  $617,258  $609,193  $600,563  $615,010 
Less: Average Noncontrolling interest 770   769   739   696   695 
Less: Average goodwill and intangible assets (199,208)  (200,060)  (200,931)  (201,823)  (202,760)
Net average tangible equity (denominator)$426,552  $417,967  $409,001  $399,436  $412,945 
          
Return on tangible equity (core) (a non-GAAP measure) 18.42%  15.42%  13.47%  16.23%  -10.17%
          
Calculation of Tangible Equity Ratio (BMBC):         
Total shareholders' equity$623,096  $622,322  $612,617  $603,674  $593,179 
Less: Noncontrolling interest 770   770   767   727   695 
Less: Goodwill and intangible assets (198,738)  (199,576)  (200,445)  (201,315)  (202,225)
Net tangible equity (numerator)$425,128  $423,516  $412,939  $403,086  $391,649 
          
Total assets$4,914,508  $5,432,022  $5,046,939  $5,271,311  $4,923,033 
Less: Goodwill and intangible assets (198,738)  (199,576)  (200,445)  (201,315)  (202,225)
Tangible assets (denominator)$4,715,770  $5,232,446  $4,846,494  $5,069,996  $4,720,808 
          
Tangible equity ratio (BMBC)(1) 9.02%  8.09%  8.52%  7.95%  8.30%
          
Calculation of Tangible Equity Ratio (BMTC):         
Total shareholders' equity$641,034  $630,880  $653,317  $639,711  $624,959 
Less: Noncontrolling interest 770   770   767   727   695 
Less: Goodwill and intangible assets (198,492)  (199,330)  (200,200)  (201,069)  (201,979)
Net tangible equity (numerator)$443,312  $432,320  $453,499  $439,369  $423,675 
          
Total assets$4,911,259  $5,428,909  $5,043,099  $5,267,536  $4,919,004 
Less: Goodwill and intangible assets (198,492)  (199,330)  (200,200)  (201,069)  (201,979)
Tangible assets (denominator)$4,712,767  $5,229,579  $4,842,899  $5,066,467  $4,717,025 
          
Tangible equity ratio (BMTC)(1) 9.41%  8.27%  9.36%  8.67%  8.98%
          
Calculation of tangible book value per common share:         
Total shareholders' equity$623,096  $622,322  $612,617  $603,674  $593,179 
Less: Noncontrolling interest 770   770   767   727   695 
Less: Goodwill and intangible assets (198,738)  (199,576)  (200,445)  (201,315)  (202,225)
Net tangible equity (numerator)$425,128  $423,516  $412,939  $403,086  $391,649 
          
Shares outstanding, end of period (denominator) 19,878,993   19,960,294   19,958,186   19,927,893   19,921,524 
          
Tangible book value per common share (a non-GAAP measure)$21.39  $21.22  $20.69  $20.23  $19.66 
          
Calculation of price / tangible book value:         
Closing share price$45.51  $30.60  $24.87  $27.66  $28.38 
Tangible book value per common share$21.39  $21.22  $20.69  $20.23  $19.66 
Price / tangible book value (a non-GAAP measure) 212.76%  144.20%  120.20%  136.73%  144.35%
          
(1)Capital Ratios for the current quarter are to be considered preliminary until the Call Reports are filed. Beginning with the March 31, 2020 call report, the capital 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 Return on Average Assets (core)         
Return on average assets (GAAP) 1.39%  1.21%  1.02%  1.16%  -0.93%
Effect of adjustment to GAAP net income to core net income 0.14%  -0.01%  0.00%  0.03%  0.00%
Return on average assets (core) 1.53%  1.20%  1.02%  1.19%  -0.93%
          
Calculation of Return on Average Equity (core)         
Return on average equity (GAAP) 11.09%  10.01%  8.60%  10.07%  -7.30%
Effect of adjustment to GAAP net income to core net income 1.05%  -0.01%  0.00%  0.24%  0.00%
Return on average equity (core) 12.14%  10.00%  8.60%  10.31%  -7.30%
          
Calculation of Tax-equivalent net interest margin adjusting for the impact of purchase accounting:         
Tax-equivalent net interest margin 3.16%  3.04%  3.03%  3.22%  3.38%
Effect of fair value marks 0.05%  0.08%  0.07%  0.09%  0.09%
Tax-equivalent net interest margin adjusting for the impact of purchase accounting 3.11%  2.96%  2.96%  3.13%  3.29%
          
 
Calculation of Tax-equivalent net interest income adjusting for the impact of purchase accounting:         
Tax-equivalent net interest income$34,880  $35,142  $35,139  $37,478  $36,440 
Effect of fair value marks 515   918   800   1,040   949 
Tax-equivalent net interest income adjusting for the impact of purchase accounting$34,365  $34,224  $34,339  $36,438  $35,491 
          
Calculation of Efficiency Ratio*:         
Noninterest expense$37,703  $38,624  $35,197  $35,503  $33,403 
Less: certain noninterest expense items:         
  Amortization of intangibles (838)  (869)  (870)  (910)  (918)
  Due diligence, merger-related and merger integration expenses (1,646)  -   -   -   - 
  Voluntary years of service incentive program expenses -   -   -   -   - 
  BMT Investment Advisers, Inc. wind-down costs -   -   -   (127)  - 
  Severance associated with staff reduction -   -   -   (538)  - 
  Gain on early lease termination -   135   -   -   - 
  Impairment of long-lived assets -   (1,605)  -   -   - 
  Disposal expense of premises and equipment -   (801)  -   -   - 
Noninterest expense (adjusted) (numerator)$35,219  $35,484  $34,327  $33,928  $32,485 
          
Noninterest income$19,841  $22,006  $21,099  $20,566  $18,300 
Less: non-core noninterest income items:         
  Gain on sale of PPP loans -   -   -   (2,411)  - 
  BMT Investment Advisers, Inc. wind-down costs -   -   -   2,207   - 
  Gain on sale of building -   (2,295)  -   -   - 
Noninterest income (core)$19,841  $19,711  $21,099  $20,362  $18,300 
Net interest income 34,781   35,037   35,032   37,385   36,333 
Noninterest income (core) and net interest income (denominator)$54,622  $54,748  $56,131  $57,747  $54,633 
          
Efficiency ratio 64.48%  64.81%  61.16%  58.75%  59.46%
 
* 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$47,562  $53,709  $56,428  $54,974  $54,070 
Less: ACL on acquired loans and leases 2,277   2,926   3,460   3,315   3,705 
ACL on originated loans and leases$45,285  $50,783  $52,968  $51,659  $50,365 
          
Total ACL on loans and leases$47,562  $53,709  $56,428  $54,974  $54,070 
Loan mark on acquired loans and leases 5,736   6,288   7,235   8,037   9,478 
Total ACL on loans and leases + Loan mark$53,298  $59,997  $63,663  $63,011  $63,548 
          
Total Portfolio loans and leases$3,633,235  $3,628,411  $3,676,684  $3,722,165  $3,767,166 
Less: Originated loans and leases 3,405,128   3,380,727   3,396,068   3,422,890   3,424,601 
Net acquired loans$228,107  $247,684  $280,616  $299,275  $342,565 
Add: Loan mark on acquired loans 5,736   6,288   7,235   8,037   9,478 
Gross acquired loans (excludes loan mark)$233,843  $253,972  $287,851  $307,312  $352,043 
Originated loans and leases 3,405,128   3,380,727   3,396,068   3,422,890   3,424,601 
Total Gross portfolio loans and leases$3,638,971  $3,634,699  $3,683,919  $3,730,202  $3,776,644 


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