BRYN MAWR, Pa., Jan. 21, 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 $15.5 million, or $0.78 diluted earnings per share, for the three months ended December 31, 2020, as compared to $13.2 million, or $0.66 diluted earnings per share, for the three months ended September 30, 2020, and $16.4 million, or $0.81 diluted earnings per share, for the three months ended December 31, 2019.

As detailed in the appendix to this earnings release, management calculates core net income, a non-GAAP measure. Core net income for the three months ended December 31, 2020 excludes certain non-core noninterest income and expense items recognized in connection with the sale of owned office space, the early termination of leased office space, and the planned closure of a branch location. As detailed in the appendix to this earnings release, while the individual components of these items were meaningful, overall core net income of $15.5 million, or $0.77 diluted earnings per share, was relatively consistent as compared to GAAP net income. There were no meaningful non-core income or expense items for the three months ended September 30, 2020 or December 31, 2019. A reconciliation of core net income and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release.

“We are pleased with how we concluded this challenging year,” commented Frank Leto, President and Chief Executive Officer, continuing, “We are excited to report that our prior investments in technology and the commitment of our people to quickly and successfully adapt to a sustainable remote working environment allowed us to execute on permanent office space reductions. The net earnings impact of the one-time gains and costs resulting from these occupancy decisions, coupled with the one-time costs associated with the forthcoming closure of one branch location was not material. We expect that these cost-saving decisions will positively impact our noninterest expense in 2021 and beyond.” Mr. Leto continued, “The number of loans within our COVID-19 deferral program at year-end has considerably decreased from prior quarters as borrowers have begun resuming payments. Lastly, our wealth division continues to perform strongly and finished the year with $19 billion in assets under management, an increase of $2.4 billion from a year ago, and linked quarter growth in revenue of over 7%.”

On January 21, 2021, the Board of Directors of the Corporation declared a quarterly dividend of $0.27 per share, payable March 1, 2021 to shareholders of record as of February 1, 2021.

SIGNIFICANT ITEMS OF NOTE

Results of Operations – Fourth Quarter 2020 Compared to Third Quarter 2020

  • Net income for the three months ended December 31, 2020 was $15.5 million, or $0.78 diluted earnings per share, as compared to $13.2 million, or $0.66 diluted earnings per share, for the three months ended September 30, 2020. Net interest income for the three months ended December 31, 2020 was $35.0 million, relatively unchanged 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 December 31, 2020 was a release of $1.2 million, as compared to a provision of $4.1 million for the three months ended September 30, 2020, a difference of $5.3 million. Total noninterest income increased $907 thousand, total noninterest expense increased $3.4 million, and income tax expense increased $385 thousand for the three months ended December 31, 2020, as compared to the three months ended September 30, 2020.

  • Net interest income for the three months ended December 31, 2020 was $35.0 million, relatively unchanged as compared to the linked quarter. Tax-equivalent net interest income for the three months ended December 31, 2020 was $35.1 million, relatively unchanged as compared to the linked quarter. Tax-equivalent net interest income for the fourth quarter of 2020 was positively impacted by the accretion of purchase accounting fair value marks of $918 thousand, an increase of $118 thousand as compared to $800 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 December 31, 2020 was $34.2 million, a decrease of $115 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 3.04% for the three months ended December 31, 2020 as compared to 3.03% for the linked quarter. Adjusting for the impact of the accretion of purchase accounting fair value marks, the adjusted tax-equivalent net interest margin was 2.96% for both the three months ended December 31, 2020 and three months ended September 30, 2020, respectively. 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 a decrease of $1.3 million in tax-equivalent interest and fees earned on loans and leases partially offset by a decrease of $1.1 million in interest expense on deposits, for the three months ended December 31, 2020 as compared to the linked quarter.

    Tax-equivalent interest and fees earned on loans and leases for the three months ended December 31, 2020 decreased $1.2 million as compared to the linked quarter. The tax-equivalent yield on average loans and leases for the three months ended December 31, 2020 was 3.89%, an eight basis point decrease as compared to the linked quarter. Average loans and leases decreased $43.9 million for the three months ended December 31, 2020 as compared to the linked quarter.

    Interest expense on deposits for the three months ended December 31, 2020 decreased $1.1 million over the linked quarter. The rate paid on average interest-bearing deposits for the three months ended December 31, 2020 was 0.27%, a 14 basis point decrease as compared to the linked quarter. Average interest-bearing deposits for the three months ended December 31, 2020 decreased $125.7 million as compared to the linked quarter.
  • Noninterest income of $22.0 million for the three months ended December 31, 2020 represented a $907 thousand increase over the linked quarter. The increase was driven by the $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, as well as an $881 thousand increase in fees for wealth management services. These increases were partially offset by a decrease of $2.5 million in capital markets revenue primarily due to decreased volume and size of interest rate swap transactions with commercial loan customers for the three months ended December 31, 2020 as compared to the linked quarter.

  • Noninterest expense of $38.6 million for the three months ended December 31, 2020 represented a $3.4 million increase over the linked quarter. The increase was primarily driven by $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 facility driven charges, which are detailed in the appendix to this earnings release as non-core items, coupled with increases of $1.2 million and $529 thousand in other operating expenses and salaries and wages, respectively, were partially offset by a decrease of $454 thousand in Pennsylvania bank shares tax expense. The increase in other operating expenses included a $598 thousand increase in deferred compensation expense, which was primarily due to market fluctuations in the fourth quarter of 2020 affecting the Corporation's deferred compensation plan liability, and a $387 thousand increase in contributions. The increase in salaries and wages was primarily due to an increase in incentive accruals. The decrease in Pennsylvania bank shares tax was driven by an increase in tax credits and refunds recorded in the fourth quarter of 2020 in connection with contributions to qualified organizations under Pennsylvania tax credit programs.
  • A release of Provision of $1.2 million for the three months ended December 31, 2020 compared to a Provision of $4.1 million for the three months ended September 30, 2020, a difference of $5.3 million. A $629 thousand release of provision for credit losses on off-balance sheet exposures and a $379 thousand release of provision for credit losses on loans and leases for the three months ended December 31, 2020 were driven by improvements in the current and forward-looking economic conditions, primarily Pennsylvania unemployment, included in the estimation of expected credit losses as compared to September 30, 2020. A $201 thousand release of provision for credit losses on accrued interest receivable on COVID-19 deferrals for the three months ended December 31, 2020 was primarily driven by a decrease in loans and leases within a deferral period. Net loan and lease charge-offs for the fourth quarter of 2020 totaled $2.3 million, an increase of $153 thousand as compared to $2.2 million for the third quarter of 2020.

  • The effective tax rate for the fourth quarter of 2020 decreased to 20.86% as compared to 22.03% for the third quarter of 2020. The decrease in effective tax rate was primarily due to an $84 thousand decrease in discrete tax expense related to stock-based compensation coupled with a reduction in state income tax expense.

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

  • Net income for the three months ended December 31, 2020 was $15.5 million, or $0.78 diluted earnings per share, as compared to $16.4 million, or $0.81 diluted earnings per share, for the three months ended December 31, 2019. Net interest income for the three months ended December 31, 2020 was $35.0 million, a decrease of $948 thousand as compared to the same period in 2019. The Provision for the three months ended December 31, 2020, as calculated under the Current Expected Credit Loss (“CECL”) framework, decreased $3.6 million as compared to the same period in 2019, which was calculated in accordance with previously-applicable GAAP. Total noninterest income decreased $1.2 million, total noninterest expense increased $2.4 million, and income tax expense decreased $108 thousand for the three months ended December 31, 2020 as compared to the three months ended December 31, 2019.

  • Net interest income for the three months ended December 31, 2020 was $35.0 million, a decrease of $948 thousand as compared to the same period in 2019. Tax-equivalent net interest income for the three months ended December 31, 2020 was $35.1 million, a decrease of $954 thousand as compared to the same period in 2019. Tax-equivalent net interest income for the fourth quarter of 2020 was positively impacted by the accretion of purchase accounting fair value marks of $918 thousand as compared to $1.1 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 December 31, 2020 was $34.2 million, a decrease of $789 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 3.04% for the three months ended December 31, 2020 as compared to 3.36% for the same period in 2019. Adjusting for the impacts of the accretion of purchase accounting fair value marks, the adjusted tax-equivalent net interest margin was 2.96% and 3.26% for three months ended December 31, 2020 and 2019, respectively. The main drivers for the decrease in the adjusted tax-equivalent net interest margin were the rate and volume changes of interest-bearing assets and liabilities as discussed in the below bullet points. A reconciliation of this and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release.

    Items contributing to the decrease in tax-equivalent net interest income adjusted for purchase accounting included decreases of $7.5 million and $790 thousand in tax-equivalent interest and fees earned on loans and leases and tax-equivalent interest income on available for sale investment securities, respectively, partially offset by decreases of $6.8 million and $546 thousand in interest paid on deposits and interest expense on short-term borrowings, respectively, for the three months ended December 31, 2020 as compared to the same period in 2019.

    Tax-equivalent interest and fees earned on loans and leases for the three months ended December 31, 2020 decreased $7.6 million as compared to the same period in 2019. The tax-equivalent yield on average loans and leases for the three months ended December 31, 2020 was 3.89%, an 89 basis point decrease as compared to the same period in 2019. The effect of the decrease in the tax-equivalent yield was partially offset by an increase of $59.0 million in average loans and leases for the three months ended December 31, 2020 as compared to same period in 2019.

    Tax-equivalent interest income on available for sale investment securities for the three months ended December 31, 2020 decreased $790 thousand as compared to the same period in 2019. The tax-equivalent yield on average available for sale investment securities for the three months ended December 31, 2020 was 1.51%, an 82 basis point decrease as compared to the same period in 2019. The effect of the decrease in the tax-equivalent yield was partially offset by an increase of $105.9 million in average available for sale investment securities for the three months ended December 31, 2020 as compared to the same period in 2019.

    Interest expense on deposits for the three months ended December 31, 2020 decreased $6.8 million as compared to the same period in 2019. The rate paid on average interest-bearing deposits for the three months ended December 31, 2020 was 0.27%, a 96 basis point decrease as compared to the same period in 2019. Average interest-bearing deposits for the three months ended December 31, 2020 decreased $33.1 million as compared to the same period in 2019.

    Interest expense on short-term borrowings for the three months ended December 31, 2020 decreased $546 thousand as compared to the same period in 2019. The decrease was primarily due to a $92.5 million decrease in average short-term borrowings for the three months ended December 31, 2020 as compared to the same period in 2019, coupled with a 169 basis point decrease in the rate paid for the three months ended December 31, 2020 as compared to the same period in 2019.
  • Noninterest income of $22.0 million for the three months ended December 31, 2020 represented a $1.2 million decrease over the same period in 2019. The decrease was driven by a $4.6 million decrease in capital markets revenue primarily due to decreased volume and size of interest rate swap transactions with commercial loan customers for the three months ended December 31, 2020 as compared to the same period in 2019. Partially offsetting the decrease was a $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, as well as a $916 thousand increase in fees for wealth management services.

  • Noninterest expense of $38.6 million for the three months ended December 31, 2020 represented a $2.4 million increase over the same period in 2019. The increase was primarily driven by $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 facility driven charges, which are detailed in the appendix to this earnings release as non-core items, coupled with an increase of $1.6 million in other operating expenses were partially offset by decreases of $937 thousand and $381 thousand in salaries and wages and Pennsylvania bank shares tax expense, respectively. The decrease in salaries and wages was primarily driven by reduced headcount. The decrease in Pennsylvania bank shares tax was driven by an increase in tax credits and refunds recorded in the fourth quarter of 2020 in connection with contributions to qualified organizations under Pennsylvania tax credit programs.
  • A release of Provision of $1.2 million for the three months ended December 31, 2020, as calculated under the CECL framework, compared to a Provision, calculated in accordance with previously-applicable GAAP, of $2.4 million for the same period in 2019, a difference of $3.6 million. A $629 thousand release of provision for credit losses on off-balance sheet exposures and a $379 thousand release of provision for credit losses on loans and leases for the three months ended December 31, 2020 were driven by improvements in the current and forward-looking economic conditions, primarily Pennsylvania unemployment, included in the estimation of expected credit losses. A $201 thousand release of provision for credit losses on accrued interest receivable on COVID-19 deferrals for the three months ended December 31, 2020 was primarily driven by a decrease in loans and leases within a deferral period. Net loan and lease charge-offs for the fourth quarter of 2020 totaled $2.3 million, an increase of $1.9 million as compared to $400 thousand for the fourth quarter in 2019.

  • The effective tax rate for the fourth quarter of 2020 increased to 20.86% as compared to 20.41% for the fourth quarter of 2019.

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

  • Total assets as of December 31, 2020 were $5.43 billion, an increase of $168.8 million from December 31, 2019. Increases of $169.0 million, $71.3 million, and $42.4 million in available for sale investment securities, other assets, and cash balances, respectively, were partially offset by a decrease of $60.9 million in portfolio loans and leases and an increase of $31.1 million in the allowance for credit losses (“ACL”) on loans and leases. The changes in available for sale investment securities, portfolio loans and leases, and the ACL on loans and leases are discussed in the bullets below. The increase in other assets was primarily driven by a $66.2 million increase in the fair value of interest rate swaps.

  • Available for sale investment securities as of December 31, 2020 totaled $1.18 billion, an increase of $169.0 million from December 31, 2019. Increases of $94.4 million, $87.9 million, and $11.4 million in collateralized loan obligations, mortgage-backed securities, and corporate bonds, respectively, were partially offset by decreases of $12.6 million and $8.9 million in collateralized mortgage obligations and U.S. Government and agency securities, respectively.

  • Total portfolio loans and leases of $3.63 billion as of December 31, 2020 decreased $60.9 million, or 1.7%, from December 31, 2019. Decreases of $85.3 million, $54.9 million, $40.9 million, $17.6 million, $13.0 million and $12.7 million in residential mortgage 1st liens, home equity lines of credit, construction loans, consumer loans, residential mortgage 2nd liens and leases, respectively, were partially offset by increases of $98.4 million, $50.9 million and $14.2 million in nonowner-occupied commercial real estate loans, owner-occupied commercial real estate loans and commercial and industrial loans, respectively. In conjunction with the adoption of CECL, the Corporation has revised its portfolio segmentation to align with the methodology applied in determining the 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 December 31, 2020, 66 consumer loans and leases in the amount of $7.3 million and 37 commercial loans in the amount of $67.7 million are within a deferral period under the Bank's modification programs, the total comprising 2.1% of the Bank’s portfolio loans and leases. Of those commercial loans within a deferral period, $59.0 million, or 87.2% of deferred commercial loans, continue to make interest-only payments.
  • 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 $53.7 million as of December 31, 2020, an increase of $31.1 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 December 31, 2020 as compared to our initial adoption of CECL.

  • Deposits of $4.38 billion as of December 31, 2020 increased $534.0 million from December 31, 2019. Increases of $503.7 million, $97.1 million, $62.0 million, and $57.1 million in noninterest bearing deposits, wholesale non-maturity deposits, savings accounts, and money market accounts, respectively, were offset by decreases of $73.6 million, $59.1 million, and $53.2 million in retail time deposits, interest-bearing demand accounts, and wholesale time deposits, respectively. The increase in noninterest bearing deposits was primarily due to the Bank's Paycheck Protection Program loan customers depositing loan funds into Bank deposit accounts during the second quarter of 2020.

  • Borrowings of $232.9 million as of December 31, 2020, which include short-term borrowings, long-term FHLB advances, subordinated notes and junior subordinated debentures, decreased $433.1 million from December 31, 2019, primarily due to decreases of $421.1 million and $12.4 million in short-term borrowings and long-term FHLB advances, respectively. The increase in deposits reduced the need to obtain wholesale funding at December 31, 2020 as compared to December 31, 2019.

  • Wealth assets totaled $18.98 billion as of December 31, 2020, an increase of $2.43 billion from December 31, 2019. As of December 31, 2020, wealth assets consisted of $11.86 billion of wealth assets where fees are set at fixed amounts, an increase of $2.28 billion from December 31, 2019, and $7.12 billion of wealth assets where fees are predominantly determined based on the market value of the assets held in their accounts, an increase of $144.5 million from December 31, 2019.

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

EARNINGS CONFERENCE CALL

The Corporation will hold a fourth quarter 2020 earnings conference call at 8:30 a.m. Eastern Time on Friday, January 22, 2021. 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 Monday, February 22, 2021. This recording may be obtained by calling 1-877-344-7529, referring to conference number 10151203.

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/bmtc210122.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://www.bmt.com/investors/presentations/.

The Corporation’s decision to hold an earnings conference call for the fourth 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 or changes in Presidential administration, 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; social or civil unrest; 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 Twelve Months Ended
 December 31,
2020
 September 30,
2020
 June 30,
2020
 March 31,
2020
 December 31,
2019
 December 31, 2020 December 31, 2019
Consolidated Balance Sheet (selected items)             
Interest-bearing deposits with banks$85,026  $241,763  $448,113  $69,239  $42,328     
Investment securities 1,198,346   584,529   550,974   537,592   1,027,182     
Loans held for sale 6,000   4,574   4,116   2,785   4,249     
Portfolio loans and leases 3,628,411   3,676,684   3,722,165   3,767,166   3,689,313     
Allowance for credit losses ("ACL") on loans and leases (53,709)  (56,428)  (54,974)  (54,070)  (22,602)    
Goodwill and other intangible assets 199,576   200,445   201,315   202,225   203,143     
Total assets 5,432,022   5,046,939   5,271,311   4,923,033   5,263,259     
Deposits - interest-bearing 2,974,411   2,783,188   3,026,152   2,850,986   2,944,072     
Deposits - non-interest-bearing 1,401,843   1,230,391   1,217,496   927,922   898,173     
Short-term borrowings 72,161   23,456   28,891   162,045   493,219     
Long-term FHLB advances 39,906   44,872   44,837   47,303   52,269     
Subordinated notes 98,883   98,839   98,794   98,750   98,705     
Jr. subordinated debentures 21,935   21,889   21,843   21,798   21,753     
Total liabilities 4,809,700   4,434,322   4,667,637   4,329,854   4,651,032     
Total shareholders' equity 622,322   612,617   603,674   593,179   612,227     
              
Average Balance Sheet (selected items)             
Interest-bearing deposits with banks$245,904  $336,225  $195,966  $50,330  $66,060  $207,535  $46,408 
Investment securities 701,258   574,094   542,321   542,876   593,289   590,397   593,409 
Loans held for sale 2,836   4,393   3,805   2,319   4,160   3,340   3,286 
Portfolio loans and leases 3,654,736   3,697,102   3,936,227   3,736,067   3,594,449   3,755,595   3,530,416 
Total interest-earning assets 4,604,734   4,611,814   4,678,319   4,331,592   4,257,958   4,556,867   4,173,519 
Goodwill and intangible assets 200,060   200,931   201,823   202,760   203,663   201,389   205,143 
Total assets 5,124,702   5,157,588   5,226,074   4,844,918   4,775,407   5,088,609   4,683,901 
Deposits - interest-bearing 2,765,941   2,891,652   2,969,113   2,853,712   2,799,050   2,869,878   2,761,463 
Short-term borrowings 29,130   29,913   136,816   140,585   121,612   83,813   129,457 
Long-term FHLB advances 43,634   44,849   46,161   47,335   53,443   45,488   51,709 
Subordinated notes 98,860   98,815   98,770   98,725   98,681   98,793   98,612 
Jr. subordinated debentures 21,905   21,859   21,814   21,768   21,726   21,837   21,660 
Total interest-bearing liabilities 2,959,470   3,087,088   3,272,674   3,162,125   3,094,512   3,119,809   3,062,901 
Total liabilities 4,507,444   4,548,395   4,625,511   4,229,908   4,168,899   4,478,088   4,094,946 
Total shareholders' equity 617,258   609,193   600,563   615,010   606,508   610,521   588,955 
              
Income Statement             
Net interest income$35,037  $35,032  $37,385  $36,333  $35,985  $143,787  $147,641 
(Release of) provision for credit losses (1,209)  4,101   3,435   35,350   2,404   41,677   8,595 
Noninterest income 22,006   21,099   20,566   18,300   23,255   81,971   82,184 
Noninterest expense 38,624   35,197   35,503   33,403   36,251   142,727   146,427 
Income tax expense (benefit) 4,094   3,709   4,010   (2,957)  4,202   8,856   15,607 
Net income (loss) 15,534   13,124   15,003   (11,163)  16,383   32,498   59,196 
Net loss attributable to noncontrolling interest (3)  (40)  (32)  -   (1)  (75)  (10)
Net income (loss) attributable to Bryn Mawr Bank Corporation 15,537   13,164   15,035   (11,163)  16,384   32,573   59,206 
Basic earnings per share 0.78   0.66   0.75   (0.56)  0.81   1.63   2.94 
Diluted earnings per share 0.78   0.66   0.75   (0.56)  0.81   1.63   2.93 
Net income (loss) (core) (1) 15,518   13,164   15,399   (11,163)  16,384   32,918   62,759 
Basic earnings per share (core) (1) 0.78   0.66   0.77   (0.56)  0.81   1.65   3.12 
Diluted earnings per share (core) (1) 0.77   0.66   0.77   (0.56)  0.81   1.64   3.10 
Dividends paid or accrued per share 0.27   0.27   0.26   0.26   0.26   1.06   1.02 
Profitability Indicators             
Return on average assets 1.21%  1.02%  1.16%  -0.93%  1.36%  0.64%  1.26%
Return on average equity 10.01%  8.60%  10.07%  -7.30%  10.72%  5.34%  10.05%
Return on tangible equity(1) 15.44%  13.47%  15.86%  -10.17%  16.85%  8.63%  16.18%
Return on tangible equity (core)(1) 15.42%  13.47%  16.23%  -10.17%  16.85%  8.72%  17.10%
Return on average assets (core)(1) 1.20%  1.02%  1.19%  -0.93%  1.36%  0.65%  1.34%
Return on average equity (core)(1) 10.00%  8.60%  10.31%  -7.30%  10.72%  5.39%  10.66%
Tax-equivalent net interest margin 3.04%  3.03%  3.22%  3.38%  3.36%  3.16%  3.55%
Efficiency ratio(1) 64.81%  61.16%  58.75%  59.46%  59.58%  60.96%  60.10%
Share Data             
Closing share price$30.60  $24.87  $27.66  $28.38  $41.24     
Book value per common share$31.18  $30.70  $30.29  $29.78  $30.42     
Tangible book value per common share(1)$21.22  $20.69  $20.23  $19.66  $20.36     
Price / book value 98.14%  81.01%  91.32%  95.30%  135.57%    
Price / tangible book value(1) 144.20%  120.20%  136.73%  144.35%  202.55%    
Weighted average diluted shares outstanding 20,027,658   20,021,617   20,008,219   20,053,159   20,213,008   20,042,345   20,233,371 
Shares outstanding, end of period 19,960,294   19,958,186   19,927,893   19,921,524   20,126,296     
Wealth Management Information:             
Wealth assets under mgmt, administration, supervision and brokerage (2)$18,976,544  $17,244,307  $17,012,903  $15,593,732  $16,548,060     
Fees for wealth management services$12,588  $11,707  $9,069  $11,168  $11,672     
Capital Ratios(3)             
Bryn Mawr Trust Company ("BMTC")             
Tier I capital to risk weighted assets ("RWA") 11.53%  12.02%  11.68%  11.10%  11.47%    
Total capital to RWA 12.74%  13.27%  12.93%  12.33%  12.09%    
Tier I leverage ratio 8.78%  9.16%  8.75%  9.12%  9.37%    
Tangible equity ratio (1) 8.27%  9.36%  8.67%  8.98%  8.58%    
Common equity Tier I capital to RWA 11.53%  12.02%  11.68%  11.10%  11.47%    
              
Bryn Mawr Bank Corporation ("BMBC")             
Tier I capital to RWA 11.85%  11.48%  11.27%  10.80%  11.42%    
Total capital to RWA 15.54%  15.19%  15.14%  14.62%  14.69%    
Tier I leverage ratio 9.03%  8.75%  8.44%  8.88%  9.33%    
Tangible equity ratio (1) 8.09%  8.52%  7.95%  8.30%  8.10%    
Common equity Tier I capital to RWA 11.28%  10.92%  10.71%  10.25%  10.86%    
              
Asset Quality Indicators             
Net loan and lease charge-offs ("NCO"s)$2,340  $2,187  $3,398  $4,073  $400  $7,925  $5,331 
              
Loans and leases risk-rated Special Mention$68,892  $48,267  $55,171  $14,833  $19,922     
Total classified loans and leases 153,011   175,501   154,687   60,972   66,901     
Total criticized loans and leases$221,903  $223,768  $209,858  $75,805  $86,823     
              
Nonperforming loans and leases ("NPL"s)$5,306  $8,597  $8,418  $7,557  $10,648     
Other real estate owned ("OREO") -   -   -   -   -     
Total nonperforming assets ("NPA"s)$ 5,306  $ 8,597  $ 8,418  $ 7,557  $ 10,648     
              
Nonperforming loans and leases 30 or more days past due$2,001  $4,153  $3,223  $3,380  $6,314     
Performing loans and leases 30 to 89 days past due 10,847   9,351   10,022   19,930   7,196     
Performing loans and leases 90 or more days past due -   -   -   -   -     
Total delinquent loans and leases$ 12,848  $ 13,504  $ 13,245  $ 23,310  $ 13,510     
              
Delinquent loans and leases to total loans and leases 0.35%  0.37%  0.36%  0.62%  0.37%    
Delinquent performing loans and leases to total loans and leases 0.30%  0.25%  0.27%  0.53%  0.19%    
NCOs / average loans and leases (annualized) 0.25%  0.24%  0.35%  0.44%  0.04%  0.21%  0.15%
NPLs / total portfolio loans and leases 0.15%  0.23%  0.23%  0.20%  0.29%    
NPAs / total loans and leases and OREO 0.15%  0.23%  0.23%  0.20%  0.29%    
NPAs / total assets 0.10%  0.17%  0.16%  0.15%  0.20%    
ACL on loans and leases / NPLs 1012.23%  656.37%  653.05%  715.50%  212.27%    
ACL / classified loans and leases 35.10%  32.15%  35.54%  88.68%  33.78%    
ACL / criticized loans and leases 24.20%  25.22%  26.20%  71.33%  26.03%    
ACL on loans and leases / portfolio loans 1.48%  1.53%  1.48%  1.44%  0.61%    
ACL on loans and leases for originated loans and leases / Originated loans and leases (1) 1.50%  1.56%  1.51%  1.47%  0.68%    
(Total ACL on loans and leases + Loan mark) / Total Gross portfolio loans and leases (1) 1.65%  1.73%  1.69%  1.68%  0.91%    
              
Troubled debt restructurings ("TDR"s) included in NPLs$1,737  $1,393  $1,792  $3,248  $3,018     
TDRs in compliance with modified terms 7,046   8,590   10,013   4,852   5,071     
Total TDRs$ 8,783  $ 9,983  $ 11,805  $ 8,100  $ 8,089     
              
(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)         
          
 December 31,
2020
 September 30,
2020
 June 30,
2020
 March 31,
2020
 December 31,
2019
Assets         
Cash and due from banks$11,287  $15,670  $16,408  $17,803  $11,603 
Interest-bearing deposits with banks 85,026   241,763   448,113   69,239   42,328 
Cash and cash equivalents 96,313   257,433   464,521   87,042   53,931 
Investment securities, available for sale 1,174,964   564,774   530,581   516,466   1,005,984 
Investment securities, held to maturity 14,759   11,725   12,592   13,369   12,577 
Investment securities, trading 8,623   8,030   7,801   7,757   8,621 
Loans held for sale 6,000   4,574   4,116   2,785   4,249 
Portfolio loans and leases, originated 3,380,727   3,396,068   3,422,890   3,424,601   3,320,816 
Portfolio loans and leases, acquired 247,684   280,616   299,275   342,565   368,497 
Total portfolio loans and leases 3,628,411   3,676,684   3,722,165   3,767,166   3,689,313 
Less: Allowance for credit losses on originated loan and leases (50,783)  (52,968)  (51,659)  (50,365)  (22,526)
Less: Allowance for credit losses on acquired loan and leases (2,926)  (3,460)  (3,315)  (3,705)  (76)
Total allowance for credit losses on loans and leases (53,709)  (56,428)  (54,974)  (54,070)  (22,602)
Net portfolio loans and leases 3,574,702   3,620,256   3,667,191   3,713,096   3,666,711 
Premises and equipment 56,662   60,369   61,778   63,144   64,965 
Operating lease right-of-use assets 34,601   38,536   39,348   40,157   40,961 
Accrued interest receivable 15,440   16,609   15,577   12,017   12,482 
Mortgage servicing rights 2,626   2,881   3,440   4,115   4,450 
Bank owned life insurance 60,393   60,072   59,728   59,399   59,079 
Federal Home Loan Bank ("FHLB") stock 12,666   4,506   4,506   11,928   23,744 
Goodwill 184,012   184,012   184,012   184,012   184,012 
Intangible assets 15,564   16,433   17,303   18,213   19,131 
Other investments 17,742   17,129   17,055   16,786   16,683 
Other assets 156,955   179,600   181,762   172,747   85,679 
Total assets$5,432,022  $5,046,939  $5,271,311  $4,923,033  $5,263,259 
                    
Liabilities         
Deposits         
Noninterest-bearing$1,401,843  $1,230,391  $1,217,496  $927,922  $898,173 
Interest-bearing 2,974,411   2,783,188   3,026,152   2,850,986   2,944,072 
Total deposits 4,376,254   4,013,579   4,243,648   3,778,908   3,842,245 
Short-term borrowings 72,161   23,456   28,891   162,045   493,219 
Long-term FHLB advances 39,906   44,872   44,837   47,303   52,269 
Subordinated notes 98,883   98,839   98,794   98,750   98,705 
Jr. subordinated debentures 21,935   21,889   21,843   21,798   21,753 
Operating lease liabilities 40,284   42,895   43,693   44,482   45,258 
Accrued interest payable 6,277   7,984   7,907   7,230   6,248 
Other liabilities 154,000   180,808   178,024   169,338   91,335 
Total liabilities 4,809,700   4,434,322   4,667,637   4,329,854   4,651,032 
          
Shareholders' equity         
Common stock 24,714   24,710   24,662   24,655   24,650 
Paid-in capital in excess of par value 381,653   380,770   380,167   379,495   378,606 
Less: common stock held in treasury, at cost (89,164)  (89,100)  (88,612)  (88,540)  (81,174)
Accumulated other comprehensive income, net of tax 8,948   10,139   9,019   8,869   2,187 
Retained earnings 296,941   286,865   279,165   269,395   288,653 
Total Bryn Mawr Bank Corporation shareholders' equity 623,092   613,384   604,401   593,874   612,922 
Noncontrolling interest (770)  (767)  (727)  (695)  (695)
Total shareholders' equity 622,322   612,617   603,674   593,179   612,227 
Total liabilities and shareholders' equity$5,432,022  $5,046,939  $5,271,311  $4,923,033  $5,263,259 
                    



Bryn Mawr Bank Corporation         
Supplemental Balance Sheet Information (unaudited)         
(dollars in thousands)         
 Portfolio Loans and Leases(1) as of
 December 31,
2020
 September 30,
2020
 June 30,
2020
 March 31,
2020
 December 31,
2019
Commercial real estate - nonowner-occupied$1,435,575  $1,382,757  $1,375,904  $1,354,416  $1,337,167 
Commercial real estate - owner-occupied 578,509   568,219   542,688   530,667   527,607 
Home equity lines of credit 169,337   179,125   194,767   209,278   224,262 
Residential mortgage - 1st liens 621,369   660,923   695,270   710,495   706,690 
Residential mortgage - junior liens 23,795   26,150   33,644   35,583   36,843 
Construction 161,308   186,415   212,374   221,116   202,198 
Total real estate loans 2,989,893   3,003,589   3,054,647   3,061,555   3,034,767 
Commercial & Industrial 446,438   465,315   457,529   491,298   432,227 
Consumer 39,683   47,043   43,762   45,951   57,241 
Leases 152,397   160,737   166,227   168,362   165,078 
Total non-real estate loans and leases 638,518   673,095   667,518   705,611   654,546 
Total portfolio loans and leases$3,628,411  $3,676,684  $3,722,165  $3,767,166  $3,689,313 
          
          
 Nonperforming Loans and Leases(1) as of
 December 31,
2020
 September 30,
2020
 June 30,
2020
 March 31,
2020
 December 31,
2019
Commercial real estate - nonowner-occupied$57  $849  $245  $181  $199 
Commercial real estate - owner-occupied 1,659   3,597   4,046   2,543   4,159 
Home equity lines of credit 729   890   915   758   636 
Residential mortgage - 1st liens 99   862   912   1,080   2,447 
Residential mortgage - junior liens 85   50   72   79   83 
Total nonperforming real estate loans 2,629   6,248   6,190   4,641   7,524 
Commercial & Industrial 1,775   1,784   1,973   2,692   2,180 
Consumer 30   31   36   52   61 
Leases 872   534   219   172   883 
Total nonperforming non-real estate loans and leases 2,677   2,349   2,228   2,916   3,124 
Total nonperforming portfolio loans and leases$5,306  $8,597  $8,418  $7,557  $10,648 
          
          
 Net Loan and Lease Charge-Offs (Recoveries)(1) for the Three Months Ended
 December 31,
2020
 September 30,
2020
 June 30,
2020
 March 31,
2020
 December 31,
2019
Commercial real estate - nonowner-occupied$240  $(2) $(4) $(2) $(1,067)
Commercial real estate - owner-occupied 382   494   1,234   -   190 
Home equity lines of credit -   -   (4)  114   33 
Residential mortgage - 1st liens -   (13)  420   727   378 
Residential mortgage - junior liens -   -   -   -   - 
Construction (1)  (1)  (1)  (1)  (1)
Total net charge-offs of real estate loans 621   478   1,645   838   (467)
Commercial & Industrial 897   1,522   499   612   57 
Consumer 409   134   238   261   227 
Leases 413   53   1,016   2,362   583 
Total net charge-offs of non-real estate loans and leases 1,719   1,709   1,753   3,235   867 
Total net charge-offs$2,340  $2,187  $3,398  $4,073  $400 
          
(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
 December 31,
2020
 September 30,
2020
  June 30,
2020
  March 31,
2020
  December 31,
2019
U.S. Treasury securities$500,100  $100  $100  $101  $500,101 
Obligations of the U.S. Government and agencies 93,098   90,928   114,149   106,679   102,020 
State & political subdivisions - tax-free 2,171   3,178   4,583   4,562   5,379 
Mortgage-backed securities 453,857   431,822   377,204   374,775   366,002 
Collateralized mortgage obligations 19,263   22,253   25,873   29,699   31,832 
Collateralized loan obligations 94,404   6,500   -   -   - 
Corporate bonds 11,421   9,343   8,022   -   - 
Other debt securities 650   650   650   650   650 
Total investment securities available for sale, at fair value$ 1,174,964  $ 564,774  $ 530,581  $ 516,466  $ 1,005,984 
             
             
 Unrealized Gain (Loss) on Investment Securities Available for Sale
 December 31,
2020
 September 30,
2020
  June 30,
2020
  March 31,
2020
  December 31,
2019
U.S. Treasury securities$5  $-  $-  $1  $35 
Obligations of the U.S. Government and agencies 649   995   1,103   1,036   (159)
State & political subdivisions - tax-free 22   27   30   10   13 
Mortgage-backed securities 12,282   12,901   11,683   11,554   5,025 
Collateralized mortgage obligations 583   662   702   778   36 
Collateralized loan obligations (96)  -   -   -   - 
Corporate bonds 421   343   22   -   - 
Total unrealized gains on investment securities available for sale$ 13,866  $ 14,928  $ 13,540  $ 13,379  $ 4,950 
             
             
 Deposits
 December 31,
2020
 September 30,
2020
  June 30,
2020
  March 31,
2020
  December 31,
2019
Interest-bearing deposits:            
Interest-bearing demand$885,802  $815,561  $910,441  $750,127  $944,915 
Money market 1,163,620   1,199,429   1,239,523   1,133,952   1,106,478 
Savings 282,406   245,167   249,636   247,799   220,450 
Retail time deposits 331,527   366,245   400,186   406,828   405,123 
Wholesale non-maturity deposits 275,011   77,356   146,463   198,888   177,865 
Wholesale time deposits 36,045   79,430   79,903   113,392   89,241 
Total interest-bearing deposits 2,974,411   2,783,188   3,026,152   2,850,986   2,944,072 
Noninterest-bearing deposits 1,401,843   1,230,391   1,217,496   927,922   898,173 
Total deposits$ 4,376,254  $ 4,013,579  $ 4,243,648  $ 3,778,908  $ 3,842,245 
                    



Bryn Mawr Bank Corporation             
Detailed Income Statements (unaudited)             
(dollars in thousands, except per share data)             
 For the Three Months Ended For the Twelve Months Ended
 December 31,
2020
 September 30,
2020
 June 30,
2020
 March 31,
2020
 December 31,
2019
 December 31,
2020
 December 31,
2019
Interest income:             
Interest and fees on loans and leases$35,632  $36,799  $40,690  $42,795  $43,220  $155,916  $178,367 
Interest on cash and cash equivalents 62   85   37   111   195   295   543 
Interest on investment securities 2,717   2,658   2,894   3,201   3,545   11,470   14,479 
Total interest income 38,411   39,542   43,621   46,107   46,960   167,681   193,389 
Interest expense:             
Interest on deposits 1,891   2,967   4,476   7,637   8,674   16,971   35,936 
Interest on short-term borrowings 9   8   232   453   555   702   2,792 
Interest on FHLB advances 226   234   155   244   279   859   1,069 
Interest on jr. subordinated debentures 205   207   229   295   323   936   1,373 
Interest on subordinated notes 1,043   1,094   1,144   1,145   1,144   4,426   4,578 
Total interest expense 3,374   4,510   6,236   9,774   10,975   23,894   45,748 
Net interest income 35,037   35,032   37,385   36,333   35,985   143,787   147,641 
(Release of) provision for credit losses ("PCL") (1,209)  4,101   3,435   35,350   2,404   41,677   8,595 
Net interest income after PCL 36,246   30,931   33,950   983   33,581   102,110   139,046 
Noninterest income:             
Fees for wealth management services 12,588   11,707   9,069   11,168   11,672   44,532   44,400 
Insurance commissions 1,393   1,682   1,303   1,533   1,666   5,911   6,877 
Capital markets revenue 841   3,314   2,975   2,361   5,455   9,491   11,276 
Service charges on deposits 756   663   603   846   858   2,868   3,374 
Loan servicing and other fees 360   373   452   461   489   1,646   2,206 
Net gain on sale of loans 842   1,021   3,134   782   597   5,779   2,342 
Net gain on sale of investment securities available for sale -   -   -   -   -   -   - 
Net gain on sale of long-lived assets 2,297   -   -   -   -   2,297   - 
Net gain (loss) on sale of other real estate owned -   -   -   148   (48)  148   (84)
Dividends on FHLB and FRB stocks 337   127   243   444   432   1,151   1,505 
Other operating income 2,592   2,212   2,787   557   2,134   8,148   10,288 
Total noninterest income 22,006   21,099   20,566   18,300   23,255   81,971   82,184 
Noninterest expense:             
Salaries and wages 17,730   17,201   16,926   16,989   18,667   68,846   74,371 
Employee benefits 2,858   3,026   3,221   3,500   2,685   12,605   13,456 
Occupancy and bank premises 3,624   3,055   3,033   3,015   3,206   12,727   12,591 
Furniture, fixtures and equipment 2,400   2,481   2,120   2,431   2,401   9,432   9,693 
Impairment of long-lived assets 1,605   -   -   -   -   1,605   - 
Advertising 554   458   196   401   599   1,609   2,105 
Amortization of intangible assets 869   870   910   918   953   3,567   3,801 
Professional fees 1,767   1,718   1,575   1,368   1,754   6,428   5,434 
Pennsylvania bank shares tax (339)  115   116   116   42   8   1,478 
Data processing 1,501   1,403   1,479   1,394   1,517   5,777   5,517 
Other operating expenses 6,055   4,870   5,927   3,271   4,427   20,123   17,981 
Total noninterest expense 38,624   35,197   35,503   33,403   36,251   142,727   146,427 
Income (loss) before income taxes 19,628   16,833   19,013   (14,120)  20,585   41,354   74,803 
Income tax expense (benefit) 4,094   3,709   4,010   (2,957)  4,202   8,856   15,607 
    Net income (loss)$15,534  $13,124  $15,003  $(11,163) $16,383  $32,498  $59,196 
Net (loss) attributable to noncontrolling interest (3)  (40)  (32)  -   (1)  (75)  (10)
    Net income (loss) attributable to Bryn Mawr Bank Corporation$15,537  $13,164  $15,035  $(11,163) $16,384  $32,573  $59,206 
              
Per share data:             
Weighted average shares outstanding 19,958,567   19,945,634   19,926,737   20,053,159   20,124,553   19,970,921   20,142,306 
Dilutive common shares 69,091   75,983   81,482   -   88,455   71,424   91,065 
Weighted average diluted shares 20,027,658   20,021,617   20,008,219   20,053,159   20,213,008   20,042,345   20,233,371 
Basic earnings per common share$0.78  $0.66  $0.75  $(0.56) $0.81  $1.63  $2.94 
Diluted earnings per common share$0.78  $0.66  $0.75  $(0.56) $0.81  $1.63  $2.93 
Dividends paid or accrued per common share$0.27  $0.27  $0.26  $0.26  $0.26  $1.06  $1.02 
Effective tax rate 20.86%  22.03%  21.09%  20.94%  20.41%  21.42%  20.86%
              



Bryn Mawr Bank Corporation
Tax-Equivalent Net Interest Margin (unaudited)
(dollars in thousands)
  For the Three Months Ended For the Twelve Months Ended
  December 31,
2020
September 30,
2020
June 30,
2020
March 31,
2020
December 31,
2019
 December 31,
2020
December 31,
2019
  Average BalanceInterest Income/ ExpenseAverage Rates Earned/ PaidAverage BalanceInterest Income/ ExpenseAverage Rates Earned/ PaidAverage BalanceInterest Income/ ExpenseAverage Rates Earned/ PaidAverage BalanceInterest Income/ ExpenseAverage Rates Earned/ PaidAverage BalanceInterest Income/ ExpenseAverage Rates Earned/ Paid Average BalanceInterest Income/ ExpenseAverage Rates Earned/ PaidAverage BalanceInterest Income/ ExpenseAverage Rates Earned/ Paid
                        
Assets:                       
Interest-bearing deposits with other banks $245,904 $62 0.10%$336,225 $85 0.10%$195,966 $37 0.08%$50,330 $111 0.89%$66,060 $195 1.17% $207,535 $295 0.14%$46,408 $543 1.17%
Investment securities - available for sale:                       
Taxable  675,642  2,561 1.51% 550,199  2,562 1.85% 516,823  2,775 2.16% 516,244  3,065 2.39% 566,359  3,334 2.34%  564,990  10,963 1.94% 566,645  13,862 2.45%
Tax-exempt  2,490  16 2.56% 3,690  23 2.48% 4,572  26 2.29% 4,909  28 2.29% 5,844  33 2.24%  3,911  93 2.38% 7,428  167 2.25%
Total investment securities - available for sale  678,132  2,577 1.51% 553,889  2,585 1.86% 521,395  2,801 2.16% 521,153  3,093 2.39% 572,203  3,367 2.33%  568,901  11,056 1.94% 574,073  14,029 2.44%
                        
Investment securities - held to maturity  15,093  57 1.50% 12,248  57 1.85% 13,126  73 2.24% 13,195  87 2.65% 12,756  84 2.61%  13,417  274 2.04% 11,099  302 2.72%
Investment securities - trading  8,033  86 4.26% 7,957  21 1.05% 7,800  24 1.24% 8,528  25 1.18% 8,330  99 4.72%  8,079  156 1.93% 8,237  172 2.09%
                        
Loans and leases *  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% 3,598,609  43,326 4.78%  3,758,935  156,312 4.16% 3,533,702  178,829 5.06%
                        
Total interest-earning assets  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% 4,257,958  47,071 4.39%  4,556,867  168,093 3.69% 4,173,519  193,875 4.65%
                        
Cash and due from banks  13,192    16,557    16,263    12,479    9,829     14,654    12,703   
Less: allowance for loan and lease losses  (55,634)   (55,285)   (54,113)   (25,786)   (21,124)    (47,747)   (20,828)  
Other assets  562,410    584,502    585,605    526,633    528,744     564,835    518,507   
                        
Total assets $5,124,702   $5,157,588   $5,226,074   $4,844,918   $4,775,407    $5,088,609   $4,683,901   
                        
Liabilities:                       
                        
Interest-bearing deposits:                       
Savings, NOW and market rate deposits $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%$2,149,623 $5,659 1.04% $2,269,786 $8,859 0.39%$1,969,205 $19,908 1.01%
Wholesale deposits  130,660  293 0.89% 223,527  465 0.83% 245,052  486 0.80% 253,322  977 1.55% 214,229  1,024 1.90%  212,943  2,221 1.04% 300,148  6,908 2.30%
Retail time deposits  349,474  1,103 1.26% 385,534  1,460 1.51% 410,911  1,649 1.61% 403,111  1,679 1.68% 435,198  1,991 1.82%  387,149  5,891 1.52% 492,110  9,120 1.85%
Total interest-bearing deposits  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% 2,799,050  8,674 1.23%  2,869,878  16,971 0.59% 2,761,463  35,936 1.30%
                        
Borrowings:                       
Short-term borrowings  29,130  9 0.12% 29,913  8 0.11% 136,816  232 0.68% 140,585  453 1.30% 121,612  555 1.81%  83,813  702 0.84% 129,457  2,792 2.16%
Long-term FHLB advances  43,634  226 2.06% 44,849  234 2.08% 46,161  155 1.35% 47,335  244 2.07% 53,443  279 2.07%  45,488  859 1.89% 51,709  1,069 2.07%
Subordinated notes  98,860  1,043 4.20% 98,815  1,094 4.40% 98,770  1,144 4.66% 98,725  1,145 4.66% 98,681  1,144 4.60%  98,793  4,426 4.48% 98,612  4,578 4.64%
Jr. subordinated debt  21,905  205 3.72% 21,859  207 3.77% 21,814  229 4.22% 21,768  295 5.45% 21,726  323 5.90%  21,837  936 4.29% 21,660  1,373 6.34%
Total borrowings  193,529  1,483 3.05% 195,436  1,543 3.14% 303,561  1,760 2.33% 308,413  2,137 2.79% 295,462  2,301 3.09%  249,931  6,923 2.77% 301,438  9,812 3.26%
                        
Total interest-bearing liabilities  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% 3,094,512  10,975 1.41%  3,119,809  23,894 0.77% 3,062,901  45,748 1.49%
                        
Noninterest-bearing deposits  1,267,795    1,220,570    1,126,139    894,264    915,128     1,127,831    900,156   
Other liabilities  280,179    240,737    226,698    173,519    159,259     230,448    131,889   
Total noninterest-bearing liabilities  1,547,974    1,461,307    1,352,837    1,067,783    1,074,387     1,358,279    1,032,045   
                        
Total liabilities  4,507,444    4,548,395    4,625,511    4,229,908    4,168,899     4,478,088    4,094,946   
                        
Shareholders' equity  617,258    609,193    600,563    615,010    606,508     610,521    588,955   
                        
Total liabilities and shareholders' equity $5,124,702   $5,157,588   $5,226,074   $4,844,918   $4,775,407    $5,088,609   $4,683,901   
                        
Net interest spread   2.88%  2.84%  2.99%  3.05%  2.98%   2.92%  3.16%
Effect of noninterest-bearing sources   0.16%  0.19%  0.23%  0.33%  0.38%   0.24%  0.39%
                        
Tax-equivalent net interest margin  $35,142 3.04% $35,139 3.03% $37,478 3.22% $36,440 3.38% $36,096 3.36%  $144,199 3.16% $148,127 3.55%
                        
Tax-equivalent adjustment  $105 0.01% $107 0.01% $93 0.01% $107 0.01% $111 0.01%  $412 0.01% $486 0.01%
                        
Supplemental Information Regarding Accretion of Fair Value Marks                    
  InterestIncrease (Decrease)Effect on Yield or Rate Increase (Decrease)Effect on Yield or Rate Increase (Decrease)Effect on Yield or Rate Increase (Decrease)Effect on Yield or Rate Increase (Decrease)Effect on Yield or Rate  Increase (Decrease)Effect on Yield or Rate Increase (Decrease)Effect on Yield or Rate
Loans and leases Income$921 0.10% $784 0.08% $1,017 0.10% $910 0.10% $1,027 0.11%  $3,632 0.10% $5,718 0.16%
Retail time deposits Expense$(78)-0.09% $(96)-0.10% $(103)-0.10% $(118)-0.12% $(134)-0.12%   (395)-0.10%  (678)-0.14%
Long-term FHLB advances Expense$35 0.32% $34 0.30% $35 0.30% $34 0.29% $34 0.25%   138 0.30%  135 0.26%
Jr. subordinated debt Expense$ 46 0.84% $ 46 0.84% $ 45 0.83% $ 45 0.83% $ 44 0.80%   182 0.83%  173 0.80%
Net interest income from fair value marks  $ 918   $ 800   $ 1,040   $ 949   $ 1,083    $ 3,707   $ 6,088  
Purchase accounting effect on tax-equivalent margin  0.08%  0.07%  0.09%  0.09%  0.10%   0.08%  0.15%
                        
* 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 Twelve Months Ended
 December 31,
2020
 September 30,
2020
 June 30,
2020
 March 31,
2020
 December 31,
2019
 December 31,
2020
 December 31,
2019
Reconciliation of Net Income to Net Income (core):             
Net income (loss) attributable to BMBC (a GAAP measure)$15,537  $13,164  $15,035  $(11,163) $16,384  $32,573  $59,206 
Less: Tax-effected non-core noninterest income:             
Gain on sale of PPP loans -   -   (1,905)  -   -   (1,905)  - 
BMT Investment Advisers wind-down costs -   -   1,744   -   -   1,744   - 
Gain on sale of building (1,813)  -   -   -   -   (1,813)  - 
Add: Tax-effected non-core noninterest expense items:             
Voluntary years of service incentive program expenses -   -   -   -   -   -   3,553 
BMT Investment Advisers wind-down costs -   -   100   -   -   100   - 
Severance associated with staff reduction -   -   425   -   -   425   - 
Gain on early lease termination (107)  -   -   -   -   (107)  - 
Impairment of long-lived assets 1,268   -   -   -   -   1,268   - 
Disposal expense of premises and equipment 633   -   -   -   -   633   - 
Net income (loss) (core) (a non-GAAP measure)$ 15,518  $ 13,164  $ 15,399  $ (11,163) $ 16,384  $ 32,918  $ 62,759 
              
Calculation of Basic and Diluted Earnings per Common Share (core):             
Weighted average common shares outstanding 19,958,567   19,945,634   19,926,737   20,053,159   20,124,553   19,970,921   20,142,306 
Dilutive common shares 69,091   75,983   81,482   -   88,455   71,424   91,065 
Weighted average diluted shares 20,027,658   20,021,617   20,008,219   20,053,159   20,213,008   20,042,345   20,233,371 
Basic earnings per common share (core) (a non-GAAP measure)$0.78  $0.66  $0.77  $(0.56) $0.81  $1.65  $3.12 
Diluted earnings per common share (core) (a non-GAAP measure)$0.77  $0.66  $0.77  $(0.56) $0.81  $1.64  $3.10 
              
Calculation of Return on Average Tangible Equity:             
Net income (loss) attributable to BMBC (a GAAP measure)$15,537  $13,164  $15,035  $(11,163) $16,384  $32,573  $59,206 
Add: Tax-effected amortization and impairment of intangible assets 687   687   719   725   753   2,818   3,003 
Net tangible income (numerator)$16,224  $13,851  $15,754  $(10,438) $17,137  $35,391  $62,209 
              
Average shareholders' equity$617,258  $609,193  $600,563  $615,010  $606,508  $610,521  $588,955 
Less: Average Noncontrolling interest 769   739   696   695   694   725   690 
Less: Average goodwill and intangible assets (200,060)  (200,931)  (201,823)  (202,760)  (203,663)  (201,389)  (205,143)
Net average tangible equity (denominator)$417,967  $409,001  $399,436  $412,945  $403,539  $409,857  $384,502 
              
Return on tangible equity (a non-GAAP measure) 15.44%  13.47%  15.86%  -10.17%  16.85%  8.63%  16.18%
              
Calculation of Return on Average Tangible Equity (core):             
Net income (loss) (core) (a non-GAAP measure)$15,518  $13,164  $15,399  $(11,163) $16,384  $32,918  $62,759 
Add: Tax-effected amortization and impairment of intangible assets 687   687   719   725   753   2,818   3,003 
Net tangible income (loss) (core) (numerator)$16,205  $13,851  $16,118  $(10,438) $17,137  $35,736  $65,762 
              
Average shareholders' equity$617,258  $609,193  $600,563  $615,010  $606,508  $610,521  $588,955 
Less: Average Noncontrolling interest 769   739   696   695   694   725   690 
Less: Average goodwill and intangible assets (200,060)  (200,931)  (201,823)  (202,760)  (203,663)  (201,389)  (205,143)
Net average tangible equity (denominator)$417,967  $409,001  $399,436  $412,945  $403,539  $409,857  $384,502 
              
Return on tangible equity (core) (a non-GAAP measure) 15.42%  13.47%  16.23%  -10.17%  16.85%  8.72%  17.10%
              
Calculation of Tangible Equity Ratio (BMBC):             
Total shareholders' equity$622,322  $612,617  $603,674  $593,179  $612,227     
Less: Noncontrolling interest 770   767   727   695   695     
Less: Goodwill and intangible assets (199,576)  (200,445)  (201,315)  (202,225)  (203,143)    
Net tangible equity (numerator)$423,516  $412,939  $403,086  $391,649  $409,779     
              
Total assets$5,432,022  $5,046,939  $5,271,311  $4,923,033  $5,263,259     
Less: Goodwill and intangible assets (199,576)  (200,445)  (201,315)  (202,225)  (203,143)    
Tangible assets (denominator)$5,232,446  $4,846,494  $5,069,996  $4,720,808  $5,060,116     
              
Tangible equity ratio (BMBC)(1) 8.09%  8.52%  7.95%  8.30%  8.10%    
              
Calculation of Tangible Equity Ratio (BMTC):             
Total shareholders' equity$630,880  $653,317  $639,711  $624,959  $624,030     
Less: Noncontrolling interest 770   767   727   695   695     
Less: Goodwill and intangible assets (199,330)  (200,200)  (201,069)  (201,979)  (190,694)    
Net tangible equity (numerator)$432,320  $453,499  $439,369  $423,675  $434,031     
              
Total assets$5,428,909  $5,043,099  $5,267,536  $4,919,004  $5,247,649     
Less: Goodwill and intangible assets (199,330)  (200,200)  (201,069)  (201,979)  (190,694)    
Tangible assets (denominator)$5,229,579  $4,842,899  $5,066,467  $4,717,025  $5,056,955     
              
Tangible equity ratio (BMTC)(1) 8.27%  9.36%  8.67%  8.98%  8.58%    
              
Calculation of tangible book value per common share:             
Total shareholders' equity$622,322  $612,617  $603,674  $593,179  $612,227     
Less: Noncontrolling interest 770   767   727   695   695     
Less: Goodwill and intangible assets (199,576)  (200,445)  (201,315)  (202,225)  (203,143)    
Net tangible equity (numerator)$423,516  $412,939  $403,086  $391,649  $409,779     
              
Shares outstanding, end of period (denominator) 19,960,294   19,958,186   19,927,893   19,921,524   20,126,296     
              
Tangible book value per common share (a non-GAAP measure)$21.22  $20.69  $20.23  $19.66  $20.36     
              
Calculation of price / tangible book value:             
Closing share price$30.60  $24.87  $27.66  $28.38  $41.24     
Tangible book value per common share$21.22  $20.69  $20.23  $19.66  $20.36     
Price / tangible book value (a non-GAAP measure) 144.20%  120.20%  136.73%  144.35%  202.55%    
              
Calculation of Return on Average Assets (core)             
Return on average assets (GAAP) 1.21%  1.02%  1.16%  -0.93%  1.36%  0.64%  1.26%
Effect of adjustment to GAAP net income to core net income -0.01%  0.00%  0.03%  0.00%  0.00%  0.01%  0.08%
Return on average assets (core) 1.20%  1.02%  1.19%  -0.93%  1.36%  0.65%  1.34%
              
Calculation of Return on Average Equity (core)             
Return on average equity (GAAP) 10.01%  8.60%  10.07%  -7.30%  10.72%  5.34%  10.05%
Effect of adjustment to GAAP net income to core net income -0.01%  0.00%  0.24%  0.00%  0.00%  0.05%  0.61%
Return on average equity (core) 10.00%  8.60%  10.31%  -7.30%  10.72%  5.39%  10.66%
              
Calculation of Tax-equivalent net interest margin adjusting for the impact of purchase accounting:             
Tax-equivalent net interest margin 3.04%  3.03%  3.22%  3.38%  3.36%  3.16%  3.55%
Effect of fair value marks 0.08%  0.07%  0.09%  0.09%  0.10%  0.08%  0.15%
Tax-equivalent net interest margin adjusting for the impact of purchase accounting 2.96%  2.96%  3.13%  3.29%  3.26%  3.08%  3.40%
              
(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 Tax-equivalent net interest income adjusting for the impact of purchase accounting:             
Tax-equivalent net interest income$35,142  $35,139  $37,478  $36,440  $36,096  $144,199  $148,127 
Effect of fair value marks 918   800   1,040   949   1,083   3,707   6,088 
Tax-equivalent net interest income adjusting for the impact of purchase accounting$34,224  $34,339  $36,438  $35,491  $35,013  $140,492  $142,039 
              
Calculation of Efficiency Ratio*:             
Noninterest expense$38,624  $35,197  $35,503  $33,403  $36,251  $142,727  $146,427 
Less: certain noninterest expense items:             
Amortization of intangibles (869)  (870)  (910)  (918)  (953)  (3,567)  (3,801)
Voluntary years of service incentive program expenses -   -   -   -   -   -   (4,498)
BMT Investment Advisers, Inc. wind-down costs -   -   (127)  -   -   (127)  - 
Severance associated with staff reduction -   -   (538)  -   -   (538)  - 
Gain on early lease termination 135   -   -   -   -   135   - 
Impairment of long-lived assets (1,605)  -   -   -   -   (1,605)  - 
Disposal expense of premises and equipment (801)  -   -   -   -   (801)  - 
Noninterest expense (adjusted) (numerator)$35,484  $34,327  $33,928  $32,485  $35,298  $136,224  $138,128 
              
Noninterest income$22,006  $21,099  $20,566  $18,300  $23,255  $81,971  $82,184 
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)  -   -   -   -   (2,295)  - 
Noninterest income (core)$19,711  $21,099  $20,362  $18,300  $23,255  $79,676  $82,184 
Net interest income 35,037   35,032   37,385   36,333   35,985   143,787   147,641 
Noninterest income (core) and net interest income (denominator)$54,748  $56,131  $57,747  $54,633  $59,240  $223,463  $229,825 
              
Efficiency ratio 64.81%  61.16%  58.75%  59.46%  59.58%  60.96%  60.10%
* 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$53,709  $56,428  $54,974  $54,070  $22,602     
Less: ACL on acquired loans and leases 2,926   3,460   3,315   3,705   76     
ACL on originated loans and leases$50,783  $52,968  $51,659  $50,365  $22,526     
              
Total ACL on loans and leases$53,709  $56,428  $54,974  $54,070  $22,602     
Loan mark on acquired loans and leases 6,288   7,235   8,037   9,478   10,905     
Total ACL on loans and leases + Loan mark$59,997  $63,663  $63,011  $63,548  $33,507     
              
Total Portfolio loans and leases$3,628,411  $3,676,684  $3,722,165  $3,767,166  $3,689,313     
Less: Originated loans and leases 3,380,727   3,396,068   3,422,890   3,424,601   3,320,816     
Net acquired loans$247,684  $280,616  $299,275  $342,565  $368,497     
Add: Loan mark on acquired loans 6,288   7,235   8,037   9,478   10,905     
Gross acquired loans (excludes loan mark)$253,972  $287,851  $307,312  $352,043  $379,402     
Originated loans and leases 3,380,727   3,396,068   3,422,890   3,424,601   3,320,816     
Total Gross portfolio loans and leases$3,634,699  $3,683,919  $3,730,202  $3,776,644  $3,700,218