Friday, 30 July 2021 03:22 GMT

Bryn Mawr Bank Corporation Reports Record Quarterly Earnings of $21.3 Million, Declares $0.28 Dividend


( MENAFN - GlobeNewsWire - Nasdaq BR)YN MAWR, Pa., July 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 $21.3 million, or $1.06 diluted earnings per share, for the three months ended June 30, 2021, as compared to $17.1 million, or $0.85 diluted earnings per share, for the three months ended March 31, 2021, and $15.0 million, or $0.75 diluted earnings per share, for the three months ended June 30, 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 $21.6 million, or $1.08 diluted earnings per share, for the three months ended June 30, 2021 as compared to $18.7 million, or $0.93 diluted earnings per share, for the three months ended March 31, 2021. There were no meaningful non-core income or expense items for the three months ended June 30, 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 excited to report record results, with second quarter net income exceeding $20 million for the first time in the Corporation's history,” commented Frank Leto, President and Chief Executive Officer, continuing,“The hard work and dedication of our employees combined with an improving economy are reflected in our results. Preparation for the pending merger with WSFS are ongoing as management and staff are working diligently to ensure a smooth transition as we await regulatory approval.” In addition to regulatory approval, the merger with WSFS is subject to certain closing conditions.

On July 22, 2021, the Board of Directors of the Corporation declared a quarterly dividend of $0.28 per share, payable September 1, 2021 to shareholders of record as of August 2, 2021.

SIGNIFICANT ITEMS OF NOTE

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

  • Net income for the three months ended June 30, 2021 was $21.3 million, or $1.06 diluted earnings per share, as compared to $17.1 million, or $0.85 diluted earnings per share, for the three months ended March 31, 2021. Net interest income for the three months ended June 30, 2021 was $35.2 million, a $458 thousand increase 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 June 30, 2021 was a recovery of $6.6 million, as compared to a recovery of $5.2 million for the three months ended March 31, 2021. Total noninterest income increased $1.1 million, total noninterest expense decreased $2.2 million, and income tax expense increased $906 thousand for the three months ended June 30, 2021, as compared to the three months ended March 31, 2021.
  • Net interest income for the three months ended June 30, 2021 was $35.2 million, a $458 thousand increase as compared to the linked quarter. Tax-equivalent net interest income for the three months ended June 30, 2021 was $35.3 million, a $454 thousand increase as compared to the linked quarter. Tax-equivalent net interest income for the second quarter of 2021 was positively impacted by the accretion of purchase accounting fair value marks of $882 thousand, an increase of $367 thousand as compared to $515 thousand for the linked quarter. Excluding the effects of these purchase accounting fair value marks, the adjusted tax-equivalent net interest income for the three months ended June 30, 2021 was $34.5 million, an increase of $87 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 3.17% for the three months ended June 30, 2021 as compared to 3.16% 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 3.09% for the three months ended June 30, 2021 as compared to 3.11% 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 increase in tax-equivalent net interest income adjusted for purchase accounting was driven by a decrease of $474 thousand in interest expense on deposits partially offset by a decrease of $355 thousand in tax-equivalent interest and fees earned on loans and leases for the three months ended June 30, 2021 as compared to the linked quarter.
    Interest expense on deposits for the three months ended June 30, 2021 decreased $466 thousand as compared to the linked quarter. The rate paid on average interest-bearing deposits for the three months ended June 30, 2021 was 0.15%, a 7 basis point decrease as compared to the linked quarter. Average interest-bearing deposits for the three months ended June 30, 2021 decreased $92.7 million as compared to the linked quarter.
    Tax-equivalent interest and fees earned on loans and leases for the three months ended June 30, 2021 decreased $56 thousand as compared to the linked quarter. The tax-equivalent yield on average loans and leases for the three months ended June 30, 2021 was 3.86%, a decrease of 4 basis points as compared to the linked quarter. Average loans and leases increased $4.3 million for the three months ended June 30, 2021 as compared to the linked quarter.
  • Noninterest income of $21.0 million for the three months ended June 30, 2021 increased $1.1 million as compared to the linked quarter. The increase was primarily driven by increases of $1.2 million and $275 thousand in fees for wealth management services and net gain on sale of loans, respectively, partially offset by decreases of $306 thousand and $215 thousand in capital markets revenue and insurance commissions, respectively.
  • Noninterest expense of $35.5 million for the three months ended June 30, 2021 decreased $2.2 million as compared to the linked quarter. The decrease was primarily driven by a decrease of $1.4 million in due diligence and merger-related expenses related to the pending merger with WSFS coupled with decreases of $463 thousand, $385 thousand, and $263 thousand in employee benefits, other operating expenses, and occupancy and bank premises expense, respectively.
  • A recovery of Provision of $6.6 million was recorded for the three months ended June 30, 2021 as compared to a recovery of Provision of $5.2 million for the three months ended March 31, 2021. The recovery of Provision of $6.6 million for the three months ended June 30, 2021 was primarily comprised of a $6.0 million recovery of provision for credit losses on loans and leases and a $570 thousand recovery of provision for credit losses on off-balance sheet credit exposures. The difference in Provision between the two periods was driven by changes in current and forward-looking economic assumptions included in the estimation of expected credit losses on loans and leases as of June 30, 2021 as compared to March 31, 2021. Net loan and lease charge-offs for the second quarter of 2021 totaled $2.4 million, an increase of $1.7 million as compared to $642 thousand for the first quarter of 2021.
  • The effective tax rate for the second quarter of 2021 decreased to 21.92% as compared to 22.93% for the first quarter of 2021. The decrease in effective tax rate was primarily due to $323 thousand in discrete tax items related to non-deductible merger-related expenses recognized in the first quarter of 2021 as compared to $47 thousand recognized in the second quarter of 2021.

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

  • Net income for the three months ended June 30, 2021 was $21.3 million, or $1.06 diluted earnings per share, as compared to $15.0 million, or $0.75 diluted earnings per share, for the three months ended June 30, 2020. Net interest income for the three months ended June 30, 2021 was $35.2 million, a decrease of $2.1 million as compared to the same period in 2020. A recovery of Provision of $6.6 million was recorded for the three months ended June 30, 2021 as compared to a Provision of $3.4 million for the three months ended June 30, 2020, a difference of $10.0 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 June 30, 2021 as compared to June 30, 2020. Total noninterest income increased $400 thousand, total noninterest expense decreased $36 thousand, and income tax expense increased $2.0 million for the three months ended June 30, 2021 as compared to the three months ended June 30, 2020.
  • Net interest income for the three months ended June 30, 2021 was $35.2 million, a decrease of $2.1 million as compared to the same period in 2020. Tax-equivalent net interest income for the three months ended June 30, 2021 was $35.3 million, a decrease of $2.1 million as compared to the same period in 2020. Tax-equivalent net interest income for the second quarter of 2021 was positively impacted by the accretion of purchase accounting fair value marks of $882 thousand as compared to $1.0 million 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 June 30, 2021 was $34.5 million, a decrease of $2.0 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 3.17% for the three months ended June 30, 2021 as compared to 3.22% 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 3.09% for the three months ended June 30, 2021 as compared to 3.13% 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 decrease in tax-equivalent net interest income adjusted for purchase accounting was driven by a decrease of $6.0 million in tax-equivalent interest and fees earned on loans and leases, partially offset by decreases of $3.6 million and $227 thousand in interest paid on deposits and interest expense on short-term borrowings, respectively, and an increase of $128 thousand in tax-equivalent interest income on available for sale investment securities for the three months ended June 30, 2021 as compared to the same period in 2020.
    Tax-equivalent interest and fees earned on loans and leases for the three months ended June 30, 2021 decreased $6.0 million as compared to the same period in 2020. The tax-equivalent yield on average loans and leases for the three months ended June 30, 2021 was 3.86%, a 30 basis point decrease as compared to the same period in 2020. Average loans and leases decreased $328.6 million for the three months ended June 30, 2021 as compared to the same period in 2020.
    Interest expense on deposits for the three months ended June 30, 2021 decreased $3.5 million as compared to the same period in 2020. The rate paid on average interest-bearing deposits for the three months ended June 30, 2021 was 0.15%, a 46 basis point decrease as compared to the same period in 2020. Average interest-bearing deposits for the three months ended June 30, 2021 decreased $448.8 million as compared to the same period in 2020.
    Interest expense on short-term borrowings for the three months ended June 30, 2021 decreased $227 thousand as compared to the same period in 2020. The decrease was primarily due to a $116.9 million decrease in average short-term borrowings for the three months ended June 30, 2021 as compared to the same period in 2020, coupled with a 58 basis point decrease in the rate paid for the three months ended June 30, 2021 as compared to the same period in 2020.
    Tax-equivalent interest income on available for sale investment securities for the three months ended June 30, 2021 increased $128 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 June 30, 2021 was 1.58%, a 58 basis point decrease as compared to the same period in 2020. Average available for sale investment securities increased $223.0 million for the three months ended June 30, 2021 as compared to the same period in 2020.
  • Noninterest income of $21.0 million for the three months ended June 30, 2021 increased $400 thousand as compared to the same period in 2020. The increase was driven by a $5.0 million increase in fees for wealth management services partially offset by decreases of $2.6 million and $1.7 million in net gain on sale of loans and capital markets revenue, respectively. The increase in fees for wealth management services was driven by the lack of non-recurring costs associated with the wind-down of BMT Investment Advisers, which had a $2.2 million impact on fees for wealth management services in the second quarter of 2020, as well as the $3.62 billion increase in wealth assets under management, administration, supervision and brokerage (“wealth assets”) between June 30, 2021 and June 30, 2020. The decrease in net gain on sale of loans was driven by a $2.4 million gain on the sale of approximately $292.1 million of PPP loans in the second quarter of 2020.
  • Noninterest expense of $35.5 million for the three months ended June 30, 2021 decreased $36 thousand as compared to the same period in 2020. Decreases of $506 thousand, $404 thousand, and $226 thousand in other operating expenses, occupancy and bank premises expense, and salaries and wages, respectively, were partially offset by increases of $602 thousand, $266 thousand, and $217 thousand in Pennsylvania bank shares tax expense, merger-related expenses, and advertising expenses, respectively.
  • A recovery of Provision of $6.6 million was recorded for the three months ended June 30, 2021 as compared to a Provision of $3.4 million for the three months ended June 30, 2020, a decrease of $10.0 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 June 30, 2021 as compared to June 30, 2020. Net loan and lease charge-offs for the second quarter of 2021 totaled $2.4 million, a decrease of $1.0 million as compared to $3.4 million for the second quarter in 2020.
  • The effective tax rate for the second quarter of 2021 increased to 21.92% as compared to 21.09% for the second quarter of 2020.

Financial Condition – June 30, 2021 Compared to December 31, 2020

  • Total assets as of June 30, 2021 were $4.96 billion, a decrease of $473.3 million from December 31, 2020. The decrease was primarily driven by a $446.2 million decrease in available for sale investment securities.
  • Available for sale investment securities as of June 30, 2021 totaled $728.7 million, a decrease of $446.2 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 $28.7 million and $23.6 million of mortgage-backed securities and U.S. Government and agency securities, respectively.
  • Total portfolio loans and leases of $3.62 billion as of June 30, 2021 decreased $11.0 million as compared to December 31, 2020. Increases of $51.7 million and $43.1 million in commercial and industrial loans and construction loans, respectively, were partially offset by decreases of $41.8 million, $25.0 million, $17.6 million and $15.9 million in residential mortgage 1st liens, owner-occupied commercial mortgages, home equity lines of credit, and nonowner-occupied commercial mortgages, respectively.
    As of the date of this earnings release, 9 consumer loans and leases in the amount of $1.2 million and 19 commercial loans in the amount of $31.1 million are within a deferral period under the Bank's COVID-19 related modification programs. Of those commercial loans within a deferral period, $29.2 million, or 94.0% of deferred commercial loans, continue to make interest-only payments.
  • The ACL on loans and leases was $39.2 million as of June 30, 2021 as compared to an ACL on loans and leases of $53.7 million as of December 31, 2020, a decrease of $14.5 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 June 30, 2021 as compared to December 31, 2020.
  • Deposits of $3.96 billion as of June 30, 2021 decreased $416.5 million from December 31, 2020. The decrease was primarily driven by decreases of $217.1 million, $202.0 million, $60.6 million, and $29.9 million in interest-bearing demand accounts, wholesale non-maturity deposits, retail time deposits, and wholesale time deposits, respectively, offset by increases of $66.8 million, $19.6 million, and $6.7 million in noninterest-bearing deposits, money market accounts, and savings accounts, respectively. 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 $182.5 million as of June 30, 2021, which include short-term borrowings, long-term FHLB advances, subordinated notes and junior subordinated debentures, decreased $50.4 million from December 31, 2020, primarily due to a decrease of $50.6 million in short-term borrowings.
  • Wealth assets totaled $20.63 billion as of June 30, 2021, an increase of $1.65 billion from December 31, 2020. As of June 30, 2021, wealth assets consisted of $13.02 billion of wealth assets where fees are set at fixed amounts, an increase of $1.16 billion from December 31, 2020, and $7.61 billion of wealth assets where fees are predominantly determined based on the market value of the assets held in their accounts, an increase of $492.7 million from December 31, 2020.
  • The capital ratios for the Bank and the Corporation, as of June 30, 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 transaction with WSFS does not close when expected or at all because required regulatory 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 transaction may not be fully realized or may take longer to realize than expected; disruption from the proposed transaction 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 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.

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


Bryn Mawr Bank Corporation
Summary Financial Information (unaudited)
(dollars in thousands, except per share data)
As of or For the Three Months Ended For the Six Months Ended
June 30,
2021
March 31,
2021
December 31,
2020
September 30,
2020
June 30,
2020
June 30,
2021
June 30,
2020
Consolidated Balance Sheet (selected items)
Interest-bearing deposits with banks $ 103,070 $ 37,089 $ 85,026 $ 241,763 $ 448,113
Investment securities 749,536 761,877 1,198,346 584,529 550,974
Loans held for sale 653 3,210 6,000 4,574 4,116
Portfolio loans and leases 3,617,411 3,633,235 3,628,411 3,676,684 3,722,165
Allowance for credit losses ("ACL") on loans and leases (39,163 ) (47,562 ) (53,709 ) (56,428 ) (54,974 )
Goodwill and other intangible assets 197,903 198,738 199,576 200,445 201,315
Total assets 4,958,700 4,914,508 5,432,022 5,046,939 5,271,311
Deposits - interest-bearing 2,491,102 2,537,534 2,974,411 2,783,188 3,026,152
Deposits - non-interest-bearing 1,468,643 1,364,716 1,401,843 1,230,391 1,217,496
Short-term borrowings 21,553 60,027 72,161 23,456 28,891
Long-term FHLB advances 39,976 39,941 39,906 44,872 44,837
Subordinated notes 98,973 98,928 98,883 98,839 98,794
Jr. subordinated debentures 22,030 21,983 21,935 21,889 21,843
Total liabilities 4,314,688 4,291,412 4,809,700 4,434,322 4,667,637
Total shareholders' equity 644,012 623,096 622,322 612,617 603,674
Average Balance Sheet (selected items)
Interest-bearing deposits with banks $ 86,383 $ 110,972 $ 245,904 $ 336,225 $ 195,966 $ 98,610 $ 123,148
Investment securities 766,574 760,625 701,258 574,094 542,321 763,616 542,598
Loans held for sale 1,008 1,203 2,836 4,393 3,805 1,105 3,062
Portfolio loans and leases 3,610,471 3,606,011 3,654,736 3,697,102 3,936,227 3,608,253 3,836,146
Total interest-earning assets 4,464,436 4,478,811 4,604,734 4,611,814 4,678,319 4,471,584 4,504,954
Goodwill and intangible assets 198,356 199,208 200,060 200,931 201,823 198,780 202,292
Total assets 4,937,707 4,968,542 5,124,702 5,157,588 5,226,074 4,953,039 5,035,495
Deposits - interest-bearing 2,520,270 2,613,004 2,765,941 2,891,652 2,969,113 2,566,381 2,911,412
Short-term borrowings 19,935 32,020 29,130 29,913 136,816 25,944 138,700
Long-term FHLB advances 39,956 39,921 43,634 44,849 46,161 39,938 46,748
Subordinated notes 98,949 98,904 98,860 98,815 98,770 98,926 98,748
Jr. subordinated debentures 22,002 21,955 21,905 21,859 21,814 21,979 21,791
Total interest-bearing liabilities 2,701,112 2,805,804 2,959,470 3,087,088 3,272,674 2,753,168 3,217,399
Total liabilities 4,305,637 4,343,552 4,507,444 4,548,395 4,625,511 4,324,489 4,427,708
Total shareholders' equity 632,070 624,990 617,258 609,193 600,563 628,550 607,787
Income Statement
Net interest income $ 35,239 $ 34,781 $ 35,037 $ 35,032 $ 37,385 $ 70,020 $ 73,718
(Recovery of) provision for credit losses (6,581 ) (5,246 ) (1,209 ) 4,101 3,435 (11,827 ) 38,785
Noninterest income 20,966 19,841 22,006 21,099 20,566 40,807 38,866
Noninterest expense 35,467 37,703 38,624 35,197 35,503 73,170 68,906
Income tax expense 5,988 5,082 4,094 3,709 4,010 11,070 1,053
Net income 21,331 17,083 15,534 13,124 15,003 38,414 3,840
Net loss attributable to noncontrolling interest (11 ) - (3 ) (40 ) (32 ) (11 ) (32 )
Net income attributable to Bryn Mawr Bank Corporation 21,342 17,083 15,537 13,164 15,035 38,425 3,872
Basic earnings per share 1.07 0.86 0.78 0.66 0.75 1.93 0.19
Diluted earnings per share 1.06 0.85 0.78 0.66 0.75 1.92 0.19
Net income (core) (1) 21,599 18,707 15,518 13,164 15,399 40,306 4,236
Basic earnings per share (core) (1) 1.09 0.94 0.78 0.66 0.77 2.03 0.21
Diluted earnings per share (core) (1) 1.08 0.93 0.77 0.66 0.77 2.01 0.21
Dividends paid or accrued per share 0.27 0.27 0.27 0.27 0.26 0.54 0.52
Profitability Indicators
Return on average assets 1.73 % 1.39 % 1.21 % 1.02 % 1.16 % 1.56 % 0.15 %
Return on average equity 13.54 % 11.09 % 10.01 % 8.60 % 10.07 % 12.33 % 1.28 %
Return on tangible equity(1) 20.31 % 16.87 % 15.44 % 13.47 % 15.86 % 18.62 % 2.63 %
Return on tangible equity (core)(1) 20.55 % 18.42 % 15.42 % 13.47 % 16.23 % 19.50 % 2.81 %
Return on average assets (core)(1) 1.75 % 1.53 % 1.20 % 1.02 % 1.19 % 1.64 % 0.17 %
Return on average equity (core)(1) 13.71 % 12.14 % 10.00 % 8.60 % 10.31 % 12.93 % 1.40 %
Tax-equivalent net interest margin 3.17 % 3.16 % 3.04 % 3.03 % 3.22 % 3.17 % 3.30 %
Efficiency ratio(1) 61.14 % 64.48 % 64.81 % 61.16 % 58.75 % 62.79 % 59.10 %
Share Data
Closing share price $ 42.19 $ 45.51 $ 30.60 $ 24.87 $ 27.66
Book value per common share $ 32.40 $ 31.34 $ 31.18 $ 30.70 $ 30.29
Tangible book value per common share(1) $ 22.48 $ 21.39 $ 21.22 $ 20.69 $ 20.23
Price / book value 130.22 % 145.21 % 98.14 % 81.01 % 91.32 %
Price / tangible book value(1) 187.68 % 212.76 % 144.20 % 120.20 % 136.73 %
Weighted average diluted shares outstanding 20,050,819 20,050,736 20,027,658 20,021,617 20,008,219 20,047,156 20,077,159
Shares outstanding, end of period 19,877,892 19,878,993 19,960,294 19,958,186 19,927,893
Wealth Management Information:
Wealth assets under mgmt, administration, supervision and brokerage (2) $ 20,630,068 $ 20,059,371 $ 18,976,544 $ 17,244,307 $ 17,012,903
Fees for wealth management services $ 14,031 $ 12,836 $ 12,588 $ 11,707 $ 9,069
Capital Ratios (3)
Bryn Mawr Trust Company ("BMTC")
Tier I capital to risk weighted assets ("RWA") 12.50 % 12.01 % 11.53 % 12.02 % 11.68 %
Total capital to RWA 13.41 % 13.11 % 12.75 % 13.27 % 12.93 %
Tier I leverage ratio 9.96 % 9.47 % 8.79 % 9.16 % 8.75 %
Tangible equity ratio (1) 9.89 % 9.41 % 8.27 % 9.36 % 8.67 %
Common equity Tier I capital to RWA 12.50 % 12.01 % 11.53 % 12.02 % 11.68 %
Bryn Mawr Bank Corporation ("BMBC")
Tier I capital to RWA 12.42 % 12.08 % 11.86 % 11.48 % 11.27 %
Total capital to RWA 15.79 % 15.65 % 15.55 % 15.19 % 15.14 %
Tier I leverage ratio 9.89 % 9.53 % 9.04 % 8.75 % 8.44 %
Tangible equity ratio (1) 9.39 % 9.02 % 8.09 % 8.52 % 7.95 %
Common equity Tier I capital to RWA 11.86 % 11.52 % 11.29 % 10.92 % 10.71 %
Asset Quality Indicators
Net loan and lease charge-offs ("NCO"s) $ 2,391 $ 642 $ 2,340 $ 2,187 $ 3,398 $ 3,033 $ 7,471
Loans and leases risk-rated Special Mention $ 83,009 $ 74,595 $ 68,892 $ 48,267 $ 55,171
Total classified loans and leases 90,153 129,120 153,011 175,501 154,687
Total criticized loans and leases $ 173,162 $ 203,715 $ 221,903 $ 223,768 $ 209,858
Nonperforming loans and leases ("NPL"s) $ 10,665 $ 5,197 $ 5,306 $ 8,597 $ 8,418
Other real estate owned ("OREO") - - - - -
Total nonperforming assets ("NPA"s) $ 10,665 $ 5,197 $ 5,306 $ 8,597 $ 8,418
Nonperforming loans and leases 30 or more days past due $ 3,041 $ 1,903 $ 2,001 $ 4,153 $ 3,223
Performing loans and leases 30 to 89 days past due 3,168 5,396 10,847 9,351 10,022
Performing loans and leases 90 or more days past due - - - - -
Total delinquent loans and leases $ 6,209 $ 7,299 $ 12,848 $ 13,504 $ 13,245
Delinquent loans and leases to total loans and leases 0.17 % 0.20 % 0.35 % 0.37 % 0.36 %
Delinquent performing loans and leases to total loans and leases 0.09 % 0.15 % 0.30 % 0.25 % 0.27 %
NCOs / average loans and leases (annualized) 0.27 % 0.07 % 0.25 % 0.24 % 0.35 % 0.17 % 0.39 %
NPLs / total portfolio loans and leases 0.29 % 0.14 % 0.15 % 0.23 % 0.23 %
NPAs / total loans and leases and OREO 0.29 % 0.14 % 0.15 % 0.23 % 0.23 %
NPAs / total assets 0.22 % 0.11 % 0.10 % 0.17 % 0.16 %
ACL on loans and leases / NPLs 367.21 % 915.18 % 1012.23 % 656.37 % 653.05 %
ACL / classified loans and leases 43.44 % 36.84 % 35.10 % 32.15 % 35.54 %
ACL / criticized loans and leases 22.62 % 23.35 % 24.20 % 25.22 % 26.20 %
ACL on loans and leases / portfolio loans 1.08 % 1.31 % 1.48 % 1.53 % 1.48 %
ACL on loans and leases for originated loans and leases / Originated loans and leases (1) 1.10 % 1.33 % 1.50 % 1.56 % 1.51 %
(Total ACL on loans and leases + Loan mark) / Total Gross portfolio loans and leases (1) 1.21 % 1.46 % 1.65 % 1.73 % 1.69 %
Troubled debt restructurings ("TDR"s) included in NPLs $ 893 $ 1,480 $ 1,737 $ 1,393 $ 1,792
TDRs in compliance with modified terms 5,629 6,967 7,046 8,590 10,013
Total TDRs $ 6,522 $ 8,447 $ 8,783 $ 9,983 $ 11,805
(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)
June 30,
2021
March 31,
2021
December 31,
2020
September 30,
2020
June 30,
2020
Assets
Cash and due from banks $ 10,829 $ 10,311 $ 11,287 $ 15,670 $ 16,408
Interest-bearing deposits with banks 103,070 37,089 85,026 241,763 448,113
Cash and cash equivalents 113,899 47,400 96,313 257,433 464,521
Investment securities, available for sale 728,738 738,974 1,174,964 564,774 530,581
Investment securities, held to maturity 12,532 14,126 14,759 11,725 12,592
Investment securities, trading 8,266 8,777 8,623 8,030 7,801
Loans held for sale 653 3,210 6,000 4,574 4,116
Portfolio loans and leases, originated 3,414,256 3,405,128 3,380,727 3,396,068 3,422,890
Portfolio loans and leases, acquired 203,155 228,107 247,684 280,616 299,275
Total portfolio loans and leases 3,617,411 3,633,235 3,628,411 3,676,684 3,722,165
Less: Allowance for credit losses on originated loan and leases (37,590 ) (45,285 ) (50,783 ) (52,968 ) (51,659 )
Less: Allowance for credit losses on acquired loan and leases (1,573 ) (2,277 ) (2,926 ) (3,460 ) (3,315 )
Total allowance for credit losses on loans and leases (39,163 ) (47,562 ) (53,709 ) (56,428 ) (54,974 )
Net portfolio loans and leases 3,578,248 3,585,673 3,574,702 3,620,256 3,667,191
Premises and equipment 54,178 55,510 56,662 60,369 61,778
Operating lease right-of-use assets 33,759 33,848 34,601 38,536 39,348
Accrued interest receivable 13,519 15,058 15,440 16,609 15,577
Mortgage servicing rights 2,173 2,493 2,626 2,881 3,440
Bank owned life insurance 60,993 60,721 60,393 60,072 59,728
Federal Home Loan Bank ("FHLB") stock 4,332 5,986 12,666 4,506 4,506
Goodwill 184,012 184,012 184,012 184,012 184,012
Intangible assets 13,891 14,726 15,564 16,433 17,303
Other investments 18,206 17,811 17,742 17,129 17,055
Other assets 131,301 126,183 156,955 179,600 181,762
Total assets $ 4,958,700 $ 4,914,508 $ 5,432,022 $ 5,046,939 $ 5,271,311
Liabilities
Deposits
Noninterest-bearing $ 1,468,643 $ 1,364,716 $ 1,401,843 $ 1,230,391 $ 1,217,496
Interest-bearing 2,491,102 2,537,534 2,974,411 2,783,188 3,026,152
Total deposits 3,959,745 3,902,250 4,376,254 4,013,579 4,243,648
Short-term borrowings 21,553 60,027 72,161 23,456 28,891
Long-term FHLB advances 39,976 39,941 39,906 44,872 44,837
Subordinated notes 98,973 98,928 98,883 98,839 98,794
Jr. subordinated debentures 22,030 21,983 21,935 21,889 21,843
Operating lease liabilities 39,400 39,543 40,284 42,895 43,693
Accrued interest payable 5,393 6,358 6,277 7,984 7,907
Other liabilities 127,618 122,382 154,000 180,808 178,024
Total liabilities 4,314,688 4,291,412 4,809,700 4,434,322 4,667,637
Shareholders' equity
Common stock 24,715 24,715 24,714 24,710 24,662
Paid-in capital in excess of par value 382,655 382,202 381,653 380,770 380,167
Less: common stock held in treasury, at cost (91,825 ) (91,774 ) (89,164 ) (89,100 ) (88,612 )
Accumulated other comprehensive income, net of tax 4,798 154 8,948 10,139 9,019
Retained earnings 324,450 308,569 296,941 286,865 279,165
Total Bryn Mawr Bank Corporation shareholders' equity 644,793 623,866 623,092 613,384 604,401
Noncontrolling interest (781 ) (770 ) (770 ) (767 ) (727 )
Total shareholders' equity 644,012 623,096 622,322 612,617 603,674
Total liabilities and shareholders' equity $ 4,958,700 $ 4,914,508 $ 5,432,022 $ 5,046,939 $ 5,271,311


Bryn Mawr Bank Corporation
Supplemental Balance Sheet Information (unaudited)
(dollars in thousands)
Portfolio Loans and Leases as of
June 30,
2021
March 31,
2021
December 31,
2020
September 30,
2020
June 30,
2020
Commercial real estate - nonowner-occupied $ 1,419,626 $ 1,408,240 $ 1,435,575 $ 1,382,757 $ 1,375,904
Commercial real estate - owner-occupied 553,464 578,747 578,509 568,219 542,688
Home equity lines of credit 151,692 157,418 169,337 179,125 194,767
Residential mortgage - 1st liens 579,657 602,584 621,369 660,923 695,270
Residential mortgage - junior liens 25,534 27,400 23,795 26,150 33,644
Construction 204,358 187,472 161,308 186,415 212,374
Total real estate loans 2,934,331 2,961,861 2,989,893 3,003,589 3,054,647
Commercial & Industrial 498,097 486,824 446,438 465,315 457,529
Consumer 44,814 39,226 39,683 47,043 43,762
Leases 140,169 145,324 152,397 160,737 166,227
Total non-real estate loans and leases 683,080 671,374 638,518 673,095 667,518
Total portfolio loans and leases $ 3,617,411 $ 3,633,235 $ 3,628,411 $ 3,676,684 $ 3,722,165
Nonperforming Loans and Leases as of
June 30,
2021
March 31,
2021
December 31,
2020
September 30,
2020
June 30,
2020
Commercial real estate - nonowner-occupied $ 396 $ 56 $ 57 $ 849 $ 245
Commercial real estate - owner-occupied 1,057 1,355 1,659 3,597 4,046
Home equity lines of credit 945 532 729 890 915
Residential mortgage - 1st liens 4,072 645 99 862 912
Residential mortgage - junior liens 181 184 85 50 72
Construction 216 - - - -
Total nonperforming real estate loans 6,867 2,772 2,629 6,248 6,190
Commercial & Industrial 3,049 1,490 1,775 1,784 1,973
Consumer 24 40 30 31 36
Leases 725 895 872 534 219
Total nonperforming non-real estate loans and leases 3,798 2,425 2,677 2,349 2,228
Total nonperforming portfolio loans and leases $ 10,665 $ 5,197 $ 5,306 $ 8,597 $ 8,418
Net Loan and Lease Charge-Offs (Recoveries) for the Three Months Ended
June 30,
2021
March 31,
2021
December 31,
2020
September 30,
2020
June 30,
2020
Commercial real estate - nonowner-occupied $ - $ - $ 240 $ (2 ) $ (4 )
Commercial real estate - owner-occupied (470 ) 189 382 494 1,234
Home equity lines of credit 46 - - - (4 )
Residential mortgage - 1st liens 23 1 - (13 ) 420
Residential mortgage - junior liens - - - - -
Construction 115 (1 ) (1 ) (1 ) (1 )
Total net charge-offs of real estate loans (286 ) 189 621 478 1,645
Commercial & Industrial 2,323 (54 ) 897 1,522 499
Consumer 145 107 409 134 238
Leases 209 400 413 53 1,016
Total net charge-offs of non-real estate loans and leases 2,677 453 1,719 1,709 1,753
Total net charge-offs $ 2,391 $ 642 $ 2,340 $ 2,187 $ 3,398


Bryn Mawr Bank Corporation
Supplemental Balance Sheet Information (unaudited)
(dollars in thousands)
Investment Securities Available for Sale, at Fair Value
June 30,
2021
March 31,
2021
December 31,
2020
September 30,
2020
June 30,
2020
U.S. Treasury securities $ 100 $ 100 $ 500,100 $ 100 $ 100
Obligations of the U.S. Government and agencies 116,701 110,413 93,098 90,928 114,149
State & political subdivisions - tax-free 2,168 2,168 2,171 3,178 4,583
Mortgage-backed securities 482,585 497,328 453,857 431,822 377,204
Collateralized mortgage obligations 15,145 17,073 19,263 22,253 25,873
Collateralized loan obligations 99,635 99,666 94,404 6,500 -
Corporate bonds 11,754 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 $ 728,738 $ 738,974 $ 1,174,964 $ 564,774 $ 530,581
Unrealized Gain (Loss) on Investment Securities Available for Sale
June 30,
2021
March 31,
2021
December 31,
2020
September 30,
2020
June 30,
2020
U.S. Treasury securities $ - $ - $ 5 $ - $ -
Obligations of the U.S. Government and agencies (842 ) (2,597 ) 649 995 1,103
State & political subdivisions - tax-free 12 16 22 27 30
Mortgage-backed securities 8,432 8,957 12,282 12,901 11,683
Collateralized mortgage obligations 458 522 583 662 702
Collateralized loan obligations 120 151 (96 ) - -
Corporate bonds 754 576 421 343 22
Total unrealized gains on investment securities available for sale $ 8,934 $ 7,625 $ 13,866 $ 14,928 $ 13,540
Deposits
June 30,
2021
March 31,
2021
December 31,
2020
September 30,
2020
June 30,
2020
Interest-bearing deposits:
Interest-bearing demand $ 668,664 $ 671,854 $ 885,802 $ 815,561 $ 910,441
Money market 1,183,252 1,201,115 1,163,620 1,199,429 1,239,523
Savings 289,108 286,124 282,406 245,167 249,636
Retail time deposits 270,926 301,702 331,527 366,245 400,186
Wholesale non-maturity deposits 73,011 70,605 275,011 77,356 146,463
Wholesale time deposits 6,141 6,134 36,045 79,430 79,903
Total interest-bearing deposits 2,491,102 2,537,534 2,974,411 2,783,188 3,026,152
Noninterest-bearing deposits 1,468,643 1,364,716 1,401,843 1,230,391 1,217,496
Total deposits $ 3,959,745 $ 3,902,250 $ 4,376,254 $ 4,013,579 $ 4,243,648


Bryn Mawr Bank Corporation
Detailed Income Statements (unaudited)
(dollars in thousands, except per share data)
For the Three Months Ended For the Six Months Ended
June 30,
2021
March 31,
2021
December 31,
2020
September 30,
2020
June 30,
2020
June 30,
2021
June 30,
2020
Interest income:
Interest and fees on loans and leases $ 34,638 $ 34,578 $ 35,632 $ 36,799 $ 40,690 $ 69,216 $ 83,485
Interest on cash and cash equivalents 16 22 62 85 37 38 148
Interest on investment securities 2,996 3,050 2,717 2,658 2,894 6,046 6,095
Total interest income 37,650 37,650 38,411 39,542 43,621 75,300 89,728
Interest expense:
Interest on deposits 958 1,424 1,891 2,967 4,476 2,382 12,113
Interest on short-term borrowings 5 10 9 8 232 15 685
Interest on FHLB advances 205 203 226 234 155 408 399
Interest on jr. subordinated debentures 199 198 205 207 229 397 524
Interest on subordinated notes 1,044 1,034 1,043 1,094 1,144 2,078 2,289
Total interest expense 2,411 2,869 3,374 4,510 6,236 5,280 16,010
Net interest income 35,239 34,781 35,037 35,032 37,385 70,020 73,718
(Recovery of) provision for credit losses ("PCL") (6,581 ) (5,246 ) (1,209 ) 4,101 3,435 (11,827 ) 38,785
Net interest income after PCL 41,820 40,027 36,246 30,931 33,950 81,847 34,933
Noninterest income:
Fees for wealth management services 14,031 12,836 12,588 11,707 9,069 26,867 20,237
Insurance commissions 1,249 1,464 1,393 1,682 1,303 2,713 2,836
Capital markets revenue 1,290 1,596 841 3,314 2,975 2,886 5,336
Service charges on deposits 733 696 756 663 603 1,429 1,449
Loan servicing and other fees 397 304 360 373 452 701 913
Net gain on sale of loans 525 250 842 1,021 3,134 775 3,916
Net gain on sale of long-lived assets - 6 2,297 - - 6 -
Net gain (loss) on sale of other real estate owned - - - - - - 148
Dividends on FHLB and FRB stocks 239 222 337 127 243 461 687
Other operating income 2,502 2,467 2,592 2,212 2,787 4,969 3,344
Total noninterest income 20,966 19,841 22,006 21,099 20,566 40,807 38,866
Noninterest expense:
Salaries and wages 16,700 16,830 17,730 17,201 16,926 33,530 33,915
Employee benefits 3,224 3,687 2,858 3,026 3,221 6,911 6,721
Occupancy and bank premises 2,629 2,892 3,624 3,055 3,033 5,521 6,048
Furniture, fixtures and equipment 2,188 2,242 2,400 2,481 2,120 4,430 4,551
Impairment of long-lived assets - - 1,605 - - - -
Advertising 413 176 554 458 196 589 597
Amortization of intangible assets 835 838 869 870 910 1,673 1,828
Due diligence, merger-related and merger integration expenses 266 1,646 - - - 1,912 -
Professional fees 1,629 1,433 1,767 1,718 1,575 3,062 2,943
Pennsylvania bank shares tax 718 749 (339 ) 115 116 1,467 232
Data processing 1,444 1,404 1,501 1,403 1,479 2,848 2,873
Other operating expenses 5,421 5,806 6,055 4,870 5,927 11,227 9,198
Total noninterest expense 35,467 37,703 38,624 35,197 35,503 73,170 68,906
Income before income taxes 27,319 22,165 19,628 16,833 19,013 49,484 4,893
Income tax expense 5,988 5,082 4,094 3,709 4,010 11,070 1,053
Net income $ 21,331 $ 17,083 $ 15,534 $ 13,124 $ 15,003 $ 38,414 $ 3,840
Net (loss) attributable to noncontrolling interest (11 ) - (3 ) (40 ) (32 ) (11 ) (32 )
Net income attributable to Bryn Mawr Bank Corporation $ 21,342 $ 17,083 $ 15,537 $ 13,164 $ 15,035 $ 38,425 $ 3,872
Per share data:
Weighted average shares outstanding 19,878,981 19,907,873 19,958,567 19,945,634 19,926,737 19,893,347 19,989,948
Dilutive common shares 171,838 142,863 69,091 75,983 81,482 153,809 87,211
Weighted average diluted shares 20,050,819 20,050,736 20,027,658 20,021,617 20,008,219 20,047,156 20,077,159
Basic earnings per common share $ 1.07 $ 0.86 $ 0.78 $ 0.66 $ 0.75 $ 1.93 $ 0.19
Diluted earnings per common share $ 1.06 $ 0.85 $ 0.78 $ 0.66 $ 0.75 $ 1.92 $ 0.19
Dividends paid or accrued per common share $ 0.27 $ 0.27 $ 0.27 $ 0.27 $ 0.26 $ 0.54 $ 0.52
Effective tax rate 21.92 % 22.93 % 20.86 % 22.03 % 21.09 % 22.37 % 21.52 %




Bryn Mawr Bank Corporation
Tax-Equivalent Net Interest Margin (unaudited)
(dollars in thousands)
For the Three Months Ended For the Six Months Ended
June 30, 2021 March 31, 2021 December 31, 2020 September 30, 2020 June 30, 2020 June 30, 2021 June 30, 2020
Average Balance Interest Income/ Expense Average Rates Earned/ Paid Average Balance Interest Income/ Expense Average Rates Earned/ Paid Average Balance Interest Income/ Expense Average Rates Earned/ Paid Average Balance Interest Income/ Expense Average Rates Earned/ Paid Average Balance Interest Income/ Expense Average Rates Earned/ Paid Average Balance Interest Income/ Expense Average Rates Earned/ Paid Average Balance Interest Income/ Expense Average Rates Earned/ Paid
Assets:
Interest-bearing deposits with other banks $86,383 $16 0.07% $110,972 $22 0.08% $245,904 $62 0.10% $336,225 $85 0.10% $195,966 $37 0.08% $98,610 $38 0.08% $123,148 $148 0.24%
Investment securities - available for sale:
Taxable 742,212 2,915 1.58% 735,508 2,947 1.62% 675,642 2,561 1.51% 550,199 2,562 1.85% 516,823 2,775 2.16% 738,879 5,861 1.60% 516,534 5,840 2.27%
Tax-exempt 2,168 14 2.59% 2,170 14 2.62% 2,490 16 2.56% 3,690 23 2.48% 4,572 26 2.29% 2,169 28 2.60% 4,740 54 2.29%
Total investment securities - available for sale 744,380 2,929 1.58% 737,678 2,961 1.63% 678,132 2,577 1.51% 553,889 2,585 1.86% 521,395 2,801 2.16% 741,048 5,889 1.60% 521,274 5,894 2.27%
Investment securities - held to maturity 13,414 49 1.47% 14,329 73 2.07% 15,093 57 1.50% 12,248 57 1.85% 13,126 73 2.24% 13,869 123 1.79% 13,160 160 2.44%
Investment securities - trading 8,780 21 0.96% 8,618 19 0.89% 8,033 86 4.26% 7,957 21 1.05% 7,800 24 1.24% 8,699 40 0.93% 8,164 49 1.21%
Loans and leases * 3,611,479 34,730 3.86% 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% 3,609,358 69,404 3.88% 3,839,208 83,677 4.38%
Total interest-earning assets 4,464,436 37,745 3.39% 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% 4,471,584 75,494 3.40% 4,504,954 89,928 4.01%
Cash and due from banks 9,741 10,824 13,192 16,557 16,263 10,279 14,371
Less: allowance for credit losses on loans and leases (47,192) (53,582) (55,634) (55,285) (54,113) (50,369) (39,950)
Other assets 510,722 532,489 562,410 584,502 585,605 521,545 556,120
Total assets $4,937,707 $4,968,542 $5,124,702 $5,157,588 $5,226,074 $4,953,039 $5,035,495
Liabilities:
Interest-bearing deposits:
Savings, NOW and market rate deposits $2,154,206 $274 0.05% $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% $2,166,401 $648 0.06% $2,255,215 $7,322 0.65%
Wholesale deposits 78,936 76 0.39% 117,710 257 0.89% 130,660 293 0.89% 223,527 465 0.83% 245,052 486 0.80% 98,215 333 0.68% 249,186 1,463 1.18%
Retail time deposits 287,128 608 0.85% 316,564 793 1.02% 349,474 1,103 1.26% 385,534 1,460 1.51% 410,911 1,649 1.61% 301,765 1,401 0.94% 407,011 3,328 1.64%
Total interest-bearing deposits 2,520,270 958 0.15% 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% 2,566,381 2,382 0.19% 2,911,412 12,113 0.84%
Borrowings:
Short-term borrowings 19,935 5 0.10% 32,020 10 0.13% 29,130 9 0.12% 29,913 8 0.11% 136,816 232 0.68% 25,944 15 0.12% 138,700 685 0.99%
Long-term FHLB advances 39,956 205 2.06% 39,921 203 2.06% 43,634 226 2.06% 44,849 234 2.08% 46,161 155 1.35% 39,938 408 2.06% 46,748 399 1.72%
Subordinated notes 98,949 1,044 4.23% 98,904 1,034 4.24% 98,860 1,043 4.20% 98,815 1,094 4.40% 98,770 1,144 4.66% 98,926 2,078 4.24% 98,748 2,289 4.66%
Jr. subordinated debt 22,002 199 3.63% 21,955 198 3.66% 21,905 205 3.72% 21,859 207 3.77% 21,814 229 4.22% 21,979 397 3.64% 21,791 524 4.84%
Total borrowings 180,842 1,453 3.22% 192,800 1,445 3.04% 193,529 1,483 3.05% 195,436 1,543 3.14% 303,561 1,760 2.33% 186,787 2,898 3.13% 305,987 3,897 2.56%
Total interest-bearing liabilities 2,701,112 2,411 0.36% 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% 2,753,168 5,280 0.39% 3,217,399 16,010 1.00%
Noninterest-bearing deposits 1,437,442 1,345,253 1,267,795 1,220,570 1,126,139 1,391,602 1,010,202
Other liabilities 167,083 192,495 280,179 240,737 226,698 179,719 200,107
Total noninterest-bearing liabilities 1,604,525 1,537,748 1,547,974 1,461,307 1,352,837 1,571,321 1,210,309
Total liabilities 4,305,637 4,343,552 4,507,444 4,548,395 4,625,511 4,324,489 4,427,708
Shareholders' equity 632,070 624,990 617,258 609,193 600,563 628,550 607,787
Total liabilities and shareholders' equity $4,937,707 $4,968,542 $5,124,702 $5,157,588 $5,226,074 $4,953,039 $5,035,495
Net interest spread 3.03% 3.01% 2.88% 2.84% 2.99% 3.01% 3.01%
Effect of noninterest-bearing sources 0.14% 0.15% 0.16% 0.19% 0.23% 0.16% 0.29%
Tax-equivalent net interest margin $35,334 3.17 % $34,880 3.16 % $35,142 3.04 % $35,139 3.03 % $37,478 3.22 % $70,214 3.17 % $73,918 3.30 %
Tax-equivalent adjustment $95 0.01% $99 0.01% $105 0.01% $107 0.01% $93 0.01% $194 0.01% $200 0.01%
Supplemental Information Regarding Accretion of Fair Value Marks
Interest 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 Increase (Decrease) Effect on Yield or Rate
Loans and leases Income $950 0.11% $539 0.06% $921 0.10% $784 0.08% $1,017 0.10% $1,489 0.08% $1,927 0.10%
Retail time deposits Expense $(50) -0.07 $(58) -0.07 $(78) -0.09 $(96) -0.10 $(103) -0.10 (108) -0.07 (221) -0.11
Long-term FHLB advances Expense $70 0.70% $35 0.36% $35 0.32% $34 0.30% $35 0.30% 70 0.35% 69 0.30%
Jr. subordinated debt Expense $48 0.88% $47 0.87% $46 0.84% $46 0.84% $45 0.83% 95 0.87% 90 0.83%
Net interest income from fair value marks $882 $515 $918 $800 $1,040 $1,432 $ 1,989
Purchase accounting effect on tax-equivalent margin 0.08 % 0.05 % 0.08 % 0.07 % 0.09 % 0.06 % 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 As of or For the Six Months Ended
June 30,
2021
March 31,
2021
December 31,
2020
September 30,
2020
June 30,
2020
June 30,
2021
June 30,
2020
Reconciliation of Net Income to Net Income (core):
Net income attributable to BMBC (a GAAP measure) $ 21,342 $ 17,083 $ 15,537 $ 13,164 $ 15,035 $ 38,425 $ 3,872
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 ) - - - -
Add: Tax-effected non-core noninterest expense items:
Due diligence, merger-related and merger integration expenses 257 1,624 - - - 1,881 -
BMT Investment Advisers wind-down costs - - - - 100 - 100
Severance associated with staff reduction - - - - 425 - 425
Gain on early lease termination - - (107 ) - - - -
Impairment of long-lived assets - - 1,268 - - - -
Disposal expense of premises and equipment - - 633 - - - -
Net income (core) (a non-GAAP measure) $ 21,599 $ 18,707 $ 15,518 $ 13,164 $ 15,399 $ 40,306 $ 4,236
Calculation of Basic and Diluted Earnings per Common Share (core):
Weighted average common shares outstanding 19,878,981 19,907,873 19,958,567 19,945,634 19,926,737 19,893,347 19,989,948
Dilutive common shares 171,838 142,863 69,091 75,983 81,482 153,809 87,211
Weighted average diluted shares 20,050,819 20,050,736 20,027,658 20,021,617 20,008,219 20,047,156 20,077,159
Basic earnings per common share (core) (a non-GAAP measure) $ 1.09 $ 0.94 $ 0.78 $ 0.66 $ 0.77 $ 2.03 $ 0.21
Diluted earnings per common share (core) (a non-GAAP measure) $ 1.08 $ 0.93 $ 0.77 $ 0.66 $ 0.77 $ 2.01 $ 0.21
Calculation of Return on Average Tangible Equity:
Net income attributable to BMBC (a GAAP measure) $ 21,342 $ 17,083 $ 15,537 $ 13,164 $ 15,035 $ 38,425 $ 3,872
Add: Tax-effected amortization and impairment of intangible assets 660 662 687 687 719 1,322 1,444
Net tangible income (numerator) $ 22,002 $ 17,745 $ 16,224 $ 13,851 $ 15,754 $ 39,747 $ 5,316
Average shareholders' equity $ 632,070 $ 624,990 $ 617,258 $ 609,193 $ 600,563 $ 628,550 $ 607,787
Less: Average Noncontrolling interest 777 770 769 739 696 774 695
Less: Average goodwill and intangible assets (198,356 ) (199,208 ) (200,060 ) (200,931 ) (201,823 ) (198,780 ) (202,292 )
Net average tangible equity (denominator) $ 434,491 $ 426,552 $ 417,967 $ 409,001 $ 399,436 $ 430,544 $ 406,190
Return on tangible equity (a non-GAAP measure) 20.31 % 16.87 % 15.44 % 13.47 % 15.86 % 18.62 % 2.63 %
Calculation of Return on Average Tangible Equity (core):
Net income (core) (a non-GAAP measure) $ 21,599 $ 18,707 $ 15,518 $ 13,164 $ 15,399 $ 40,306 $ 4,236
Add: Tax-effected amortization and impairment of intangible assets 660 662 687 687 719 1,322 1,444
Net tangible income (core) (numerator) $ 22,259 $ 19,369 $ 16,205 $ 13,851 $ 16,118 $ 41,628 $ 5,680
Average shareholders' equity $ 632,070 $ 624,990 $ 617,258 $ 609,193 $ 600,563 $ 628,550 $ 607,787
Less: Average Noncontrolling interest 777 770 769 739 696 774 695
Less: Average goodwill and intangible assets (198,356 ) (199,208 ) (200,060 ) (200,931 ) (201,823 ) (198,780 ) (202,292 )
Net average tangible equity (denominator) $ 434,491 $ 426,552 $ 417,967 $ 409,001 $ 399,436 $ 430,544 $ 406,190
Return on tangible equity (core) (a non-GAAP measure) 20.55 % 18.42 % 15.42 % 13.47 % 16.23 % 19.50 % 2.81 %
Calculation of Tangible Equity Ratio (BMBC):
Total shareholders' equity $ 644,012 $ 623,096 $ 622,322 $ 612,617 $ 603,674
Less: Noncontrolling interest 781 770 770 767 727
Less: Goodwill and intangible assets (197,903 ) (198,738 ) (199,576 ) (200,445 ) (201,315 )
Net tangible equity (numerator) $ 446,890 $ 425,128 $ 423,516 $ 412,939 $ 403,086
Total assets $ 4,958,700 $ 4,914,508 $ 5,432,022 $ 5,046,939 $ 5,271,311
Less: Goodwill and intangible assets (197,903 ) (198,738 ) (199,576 ) (200,445 ) (201,315 )
Tangible assets (denominator) $ 4,760,797 $ 4,715,770 $ 5,232,446 $ 4,846,494 $ 5,069,996
Tangible equity ratio (BMBC) (1) 9.39 % 9.02 % 8.09 % 8.52 % 7.95 %
Calculation of Tangible Equity Ratio (BMTC):
Total shareholders' equity $ 667,405 $ 641,034 $ 630,880 $ 653,317 $ 639,711
Less: Noncontrolling interest 781 770 770 767 727
Less: Goodwill and intangible assets (197,657 ) (198,492 ) (199,330 ) (200,200 ) (201,069 )
Net tangible equity (numerator) $ 470,529 $ 443,312 $ 432,320 $ 453,499 $ 439,369
Total assets $ 4,954,878 $ 4,911,259 $ 5,428,909 $ 5,043,099 $ 5,267,536
Less: Goodwill and intangible assets (197,657 ) (198,492 ) (199,330 ) (200,200 ) (201,069 )
Tangible assets (denominator) $ 4,757,221 $ 4,712,767 $ 5,229,579 $ 4,842,899 $ 5,066,467
Tangible equity ratio (BMTC) (1) 9.89 % 9.41 % 8.27 % 9.36 % 8.67 %
Calculation of tangible book value per common share:
Total shareholders' equity $ 644,012 $ 623,096 $ 622,322 $ 612,617 $ 603,674
Less: Noncontrolling interest 781 770 770 767 727
Less: Goodwill and intangible assets (197,903 ) (198,738 ) (199,576 ) (200,445 ) (201,315 )
Net tangible equity (numerator) $ 446,890 $ 425,128 $ 423,516 $ 412,939 $ 403,086
Shares outstanding, end of period (denominator) 19,877,892 19,878,993 19,960,294 19,958,186 19,927,893
Tangible book value per common share (a non-GAAP measure) $ 22.48 $ 21.39 $ 21.22 $ 20.69 $ 20.23
Calculation of price / tangible book value:
Closing share price $ 42.19 $ 45.51 $ 30.60 $ 24.87 $ 27.66
Tangible book value per common share $ 22.48 $ 21.39 $ 21.22 $ 20.69 $ 20.23
Price / tangible book value (a non-GAAP measure) 187.68 % 212.76 % 144.20 % 120.20 % 136.73 %
(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) 1.73 % 1.39 % 1.21 % 1.02 % 1.16 % 1.56 % 0.15 %
Effect of adjustment to GAAP net income to core net income 0.02 % 0.14 % -0.01 % 0.00 % 0.03 % 0.08 % 0.02 %
Return on average assets (core) 1.75 % 1.53 % 1.20 % 1.02 % 1.19 % 1.64 % 0.17 %
Calculation of Return on Average Equity (core)
Return on average equity (GAAP) 13.54 % 11.09 % 10.01 % 8.60 % 10.07 % 12.33 % 1.28 %
Effect of adjustment to GAAP net income to core net income 0.17 % 1.05 % -0.01 % 0.00 % 0.24 % 0.60 % 0.12 %
Return on average equity (core) 13.71 % 12.14 % 10.00 % 8.60 % 10.31 % 12.93 % 1.40 %
Calculation of Tax-equivalent net interest margin adjusting for the impact of purchase accounting:
Tax-equivalent net interest margin 3.17 % 3.16 % 3.04 % 3.03 % 3.22 % 3.17 % 3.30 %
Effect of fair value marks 0.08 % 0.05 % 0.08 % 0.07 % 0.09 % 0.06 % 0.09 %
Tax-equivalent net interest margin adjusting for the impact of purchase accounting 3.09 % 3.11 % 2.96 % 2.96 % 3.13 % 3.11 % 3.21 %
Calculation of Tax-equivalent net interest income adjusting for the impact of purchase accounting:
Tax-equivalent net interest income $ 35,334 $ 34,880 $ 35,142 $ 35,139 $ 37,478 $ 70,214 $ 73,918
Effect of fair value marks 882 515 918 800 1,040 1,432 1,989
Tax-equivalent net interest income adjusting for the impact of purchase accounting $ 34,452 $ 34,365 $ 34,224 $ 34,339 $ 36,438 $ 68,782 $ 71,929
Calculation of Efficiency Ratio*:
Noninterest expense $ 35,467 $ 37,703 $ 38,624 $ 35,197 $ 35,503 $ 73,170 $ 68,906
Less: certain noninterest expense items:
Amortization of intangibles (835 ) (838 ) (869 ) (870 ) (910 ) (1,673 ) (1,828 )
Due diligence, merger-related and merger integration expenses (266 ) (1,646 ) - - - (1,912 ) -
BMT Investment Advisers, Inc. wind-down costs - - - - (127 ) - (127 )
Severance associated with staff reduction - - - - (538 ) - (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) $ 34,366 $ 35,219 $ 35,484 $ 34,327 $ 33,928 $ 69,585 $ 66,413
Noninterest income $ 20,966 $ 19,841 $ 22,006 $ 21,099 $ 20,566 $ 40,807 $ 38,866
Less: non-core noninterest income items:
Gain on sale of PPP loans - - - - (2,411 ) - (2,411 )
BMT Investment Advisers, Inc. wind-down costs - - - - 2,207 - 2,207
Gain on sale of building - - (2,295 ) - - - -
Noninterest income (core) $ 20,966 $ 19,841 $ 19,711 $ 21,099 $ 20,362 $ 40,807 $ 38,662
Net interest income 35,239 34,781 35,037 35,032 37,385 70,020 73,718
Noninterest income (core) and net interest income (denominator) $ 56,205 $ 54,622 $ 54,748 $ 56,131 $ 57,747 $ 110,827 $ 112,380
Efficiency ratio 61.14 % 64.48 % 64.81 % 61.16 % 58.75 % 62.79 % 59.10 %
* 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 $ 39,163 $ 47,562 $ 53,709 $ 56,428 $ 54,974
Less: ACL on acquired loans and leases 1,573 2,277 2,926 3,460 3,315
ACL on originated loans and leases $ 37,590 $ 45,285 $ 50,783 $ 52,968 $ 51,659
Total ACL on loans and leases $ 39,163 $ 47,562 $ 53,709 $ 56,428 $ 54,974
Loan mark on acquired loans and leases 4,779 5,736 6,288 7,235 8,037
Total ACL on loans and leases + Loan mark $ 43,942 $ 53,298 $ 59,997 $ 63,663 $ 63,011
Total Portfolio loans and leases $ 3,617,411 $ 3,633,235 $ 3,628,411 $ 3,676,684 $ 3,722,165
Less: Originated loans and leases 3,414,256 3,405,128 3,380,727 3,396,068 3,422,890
Net acquired loans $ 203,155 $ 228,107 $ 247,684 $ 280,616 $ 299,275
Add: Loan mark on acquired loans 4,779 5,736 6,288 7,235 8,037
Gross acquired loans (excludes loan mark) $ 207,934 $ 233,843 $ 253,972 $ 287,851 $ 307,312
Originated loans and leases 3,414,256 3,405,128 3,380,727 3,396,068 3,422,890
Total Gross portfolio loans and leases $ 3,622,190 $ 3,638,971 $ 3,634,699 $ 3,683,919 $ 3,730,202

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