BRYN MAWR, Pa., Jan. 16, 2020 (GLOBE NEWSWIRE) -- Bryn Mawr Bank Corporation (NASDAQ: BMTC) (the “Corporation”), parent of The Bryn Mawr Trust Company (the “Bank”), today reported net income of $16.4 million, or $0.81 diluted earnings per share for the three months ended December 31, 2019, as compared to net income of $16.4 million, or $0.81 diluted earnings per share, for the three months ended September 30, 2019, and $17.1 million, or $0.84 diluted earnings per share, for the three months ended December 31, 2018.

As detailed in the appendix to this earnings release, management calculates core net income, a non-GAAP measure, which excludes income tax charges incurred in connection with the Tax Cuts and Jobs Act, due diligence and merger-related expenses, one-time costs associated with our voluntary Years of Service Incentive Program, and other non-core income and expense items. There were no meaningful non-core income or expense items for the three months ended December 31, 2019, September 30, 2019, or December 31, 2018. 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 excited to report a strong conclusion to 2019,” commented Frank Leto, President and Chief Executive Officer. “We believe loan growth of 4.2% over the prior quarter and 7.6% over the prior year, along with strong fee income from both wealth and capital markets are evidence of the continued success of our One BMT market strategy” Mr. Leto continued, “As we look to 2020 and what is shaping up to be a very challenging operating environment, our entire organization is focused on realizing the value of the investments in talent and technology we have made over the last few years to remain a market leader while controlling future increases in expenses until such time as the environment improves,” Mr. Leto concluded.

On January 16, 2020, the Board of Directors of the Corporation declared a quarterly dividend of $0.26 per share, payable March 1, 2020 to shareholders of record as of January 31, 2020.

SIGNIFICANT ITEMS OF NOTE

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

  • Net income for the three months ended December 31, 2019 was $16.4 million, relatively unchanged as compared to net income of $16.4 million for the three months ended September 30, 2019. Net interest income for the three months ended December 31, 2019 was $36.0 million, a decrease of $1.4 million over the linked quarter. The provision for loan and lease losses (the “Provision”) for the three months ended December 31, 2019 increased $1.3 million as compared to the third quarter of 2019. Total noninterest income increased $3.8 million, total noninterest expense increased $1.3 million, and income tax expense decreased $200 thousand for the three months ended December 31, 2019, as compared to the three months ended September 30, 2019.

  • Net interest income for the three months ended December 31, 2019 was $36.0 million, a decrease of $1.4 million over the linked quarter. Tax-equivalent net interest income for the three months ended December 31, 2019 was $36.1 million, a decrease of $1.4 million over the linked quarter. Tax-equivalent net interest income for the fourth quarter of 2019 was positively impacted by the accretion of purchase accounting fair value marks of $1.1 million as compared to $1.6 million for the linked quarter. Excluding the effects of these purchase accounting fair value marks, the adjusted tax-equivalent net interest income for the three months ended December 31, 2019 was $35.0 million, a decrease of $931 thousand over the linked quarter. A reconciliation of this and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release. Items contributing to the decrease in tax-equivalent net interest income adjusted for purchase accounting included decreases of $1.8 million and $434 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 $853 thousand and $382 thousand in interest paid on deposits and interest expense on short-term borrowings, respectively, for the three months ended December 31, 2019 as compared to the linked quarter ended September 30, 2019.

    Tax-equivalent interest and fees earned on loans and leases for the three months ended December 31, 2019 decreased $2.3 million as compared to the linked quarter. The decrease was primarily due to a 35 basis point decrease in tax-equivalent yield on average loans and leases for the three months ended December 31, 2019 as compared to the linked quarter. The decrease in tax-equivalent yield was primarily due to the decreases in prime loan rates observed during the second half of the year driven by the current interest rate environment, which affected new originations and refinancing, as well as existing adjustable rate loans. The effect of the decrease in tax-equivalent yield was partially offset by an increase of $65.7 million in average loans and leases for the three months ended December 31, 2019 as compared to the linked quarter.

    Tax-equivalent interest income on available for sale investment securities for the three months ended December 31, 2019 decreased $434 thousand as compared to the linked quarter. Average available for sale investment securities decreased $29.4 million over the linked quarter and experienced an 18 basis point decrease in tax-equivalent yield.

    Interest expense on deposits for the three months ended December 31, 2019 decreased $836 thousand over the linked quarter. The decrease was primarily due to a 13 basis point decrease in tax-equivalent yield on average interest-bearing deposits for the three months ended December 31, 2019 as compared to the linked quarter. The effect of the decrease in tax-equivalent yield was partially offset by an increase of $22.8 million in average interest-bearing deposits for the three months ended December 31, 2019 as compared to the linked quarter.

    Interest expense on short-term borrowings for the three months ended December 31, 2019 decreased $382 thousand over the linked quarter. Average short-term borrowings decreased $48.3 million coupled with a 38 basis point decrease in the rate paid as compared to the linked quarter.

  • The tax-equivalent net interest margin was 3.36% for the three months ended December 31, 2019 as compared to 3.54% 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 3.26% for the three months ended December 31, 2019 as compared to 3.39% for the linked quarter. A reconciliation of this and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release.
  • Noninterest income of $23.3 million for the three months ended December 31, 2019 represented a $3.8 million increase over the linked quarter. The increase was primarily due to increases of $3.3 million and $846 thousand in capital markets revenue and fees for wealth management services, respectively. Partially offsetting these increases were decreases of $176 thousand and $121 thousand in insurance commissions and other operating income, respectively. The increase in capital markets revenue was primarily due to increased volume and size of interest rate swap transactions with commercial loan customers for the three months ended December 31, 2019 as compared to the linked quarter.

  • Noninterest expense of $36.4 million for the three months ended December 31, 2019 represented a $1.3 million increase over the linked quarter. Contributing to the increase were increases of $902 thousand, $710 thousand, $273 thousand, $198 thousand, and $140 thousand in salaries and wages, professional fees, other operating expense, occupancy and bank premises expense, and data processing expense, respectively. Partially offsetting these increases were decreases of $603 thousand and $472 thousand in employee benefits and Pennsylvania bank shares tax expense, respectively.

  • The Provision increased $1.3 million for the three months ended December 31, 2019 to $2.2 million, as compared to $919 thousand for the third quarter of 2019. Net loan and lease charge-offs for the fourth quarter of 2019 totaled $400 thousand as compared to $1.3 million for the third quarter of 2019. The decrease in net charge-offs was largely the result of a $1.1 million recovery, during the fourth quarter of 2019, on a commercial mortgage loan which had been partially charged off in the first quarter of 2019. The effect of the $924 thousand decrease in net charge-offs on a linked quarter basis was partially offset by the increase in Provision recorded for originated loan growth during the fourth quarter of 2019. Originated loans and leases increased by $183.0 million, or 5.8%, during the fourth quarter of 2019, as compared to an increase of $48.9 million, or 1.6%, during the third quarter of 2019.

  • The effective tax rate for the fourth quarter of 2019 decreased to 20.41% as compared to 21.20% for the third quarter of 2019.

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

  • Net income for the three months ended December 31, 2019 was $16.4 million, or $0.81 diluted earnings per share, as compared to net income of $17.1 million, or diluted earnings per share of $0.84 for the same period in 2018. Net interest income for the three months ended December 31, 2019 was $36.0 million, a decrease of $2.0 million as compared to the same period in 2018. The Provision for the three months ended December 31, 2019 decreased $137 thousand as compared to the same period in 2018. Total noninterest income increased $5.2 million, total noninterest expense increased $1.6 million, and income tax expense increased $2.5 million for the three months ended December 31, 2019 as compared to the same period in 2018.
     
  • Net interest income for the three months ended December 31, 2019 was $36.0 million, a decrease of $2.0 million as compared to the same period in 2018. Tax-equivalent net interest income for the three months ended December 31, 2019 was $36.1 million, a decrease of $2.0 million as compared to the same period in 2018. Tax-equivalent net interest income for the fourth quarter of 2019 was positively impacted by the accretion of purchase accounting fair value marks of $1.1 million as compared to $2.7 million for the same period in 2018. Excluding the effects of these purchase accounting fair value marks, the adjusted tax-equivalent net interest income for the three months ended December 31, 2019 was $35.0 million, a decrease of $406 thousand as compared to the same period in 2018. A reconciliation of this and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release. The decrease in adjustment for purchase accounting was primarily due to an increase of $1.5 million in interest paid on deposits for the three months ended December 31, 2019 as compared to the same period in 2018, partially offset by increases of $517 thousand and $222 thousand in tax-equivalent interest and fees earned on loans and leases and tax-equivalent interest earned on available for sale investment securities, respectively, for the three months ended December 31, 2019 as compared to the same period in 2018.

    Tax-equivalent interest and fees earned on loans and leases for the three months ended December 31, 2019 decreased $948 thousand as compared to the same period in 2018. The decrease was primarily due to a 39 basis point decrease in tax-equivalent yield on average loans and leases for the three months ended December 31, 2019 as compared to the same period in 2018. The decrease in tax-equivalent yield was primarily due to the decreases in prime loan rates observed during the second half of the year, driven by the current interest rate environment, which affected yields on new originations and refinancing, as well as existing adjustable rate loans. The effect of the decrease in tax-equivalent yield was partially offset by an increase of $199.1 million in average loans and leases for the three months ended December 31, 2019 as compared to same period in 2018.

    Tax-equivalent interest income on available for sale investment securities for the three months ended December 31, 2019 increased $222 thousand as compared to the same period in 2018. Average available for sale investment securities increased by $34.9 million and experienced a one basis point tax-equivalent yield increase, in each case as compared to the same period in 2018.

    Interest expense on short-term borrowings and long-term FHLB advances for the three months ended December 31, 2019 decreased $126 thousand and $52 thousand, respectively, as compared to the same period in 2018. Average short-term borrowings decreased $6.8 million coupled with a 29 basis point decrease in the rate paid for the three months ended December 31, 2019 as compared to the same period in 2018. Average long-term FHLB advances decreased $13.9 million, offset by a 12 basis point increase in the rate paid for the three months ended December 31, 2019 as compared to the same period in 2018.

    Interest expense on deposits for the three months ended December 31, 2019 increased $1.6 million as compared to the same period in 2018. The increase was primarily due to a 16 basis point increase in the rate paid on deposits coupled with a $196.6 million increase in average interest-bearing deposits for the three months ended December 31, 2019 as compared to the same period in 2018.

  • The tax-equivalent net interest margin was 3.36% for the three months ended December 31, 2019 as compared to 3.79% for the same period in 2018. Adjusting for the impacts of the accretion of purchase accounting fair value marks, the adjusted tax-equivalent net interest margin was 3.26% and 3.52% for three months ended December 31, 2019 and 2018, 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 above bullet points. A reconciliation of this and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release.

  • Noninterest income of $23.3 million for the three months ended December 31, 2019 represented a $5.2 million increase over the same period in 2018. The increase was primarily due to increases of $4.1 million, $1.1 million, $655 thousand, and $207 thousand in capital markets revenue, other operating income, fees for wealth management services, and insurance commissions, respectively, partially offset by a decrease of $1.0 million in net gain on sale of loans. The increase in capital markets revenue was primarily due to increased volume and size of interest rate swap transactions with commercial loan customers for the three months ended December 31, 2019 as compared to the same period in 2018.

  • Noninterest expense of $36.4 million for the three months ended December 31, 2019 represented a $1.6 million increase over the same period in 2018. Contributing to the increase were increases of $1.0 million, $746 thousand, $228 thousand, and $177 thousand in other operating expense, salaries and wages, professional fees, and data processing expense, respectively. Partially offsetting these increases were decreases of $332 thousand and $292 thousand in Pennsylvania bank shares tax expense and employee benefits, respectively.

  • The Provision decreased by $137 thousand for the three months ended December 31, 2019 to $2.2 million, as compared to $2.4 million for the same period in 2018. The decrease in Provision was related to the reduced level of net loan and lease charge-offs during the fourth quarter of 2019, which totaled $400 thousand, as compared to $1.6 million for the same period in 2018. The decrease in net charge-offs on a year-over-year basis was largely the result of a $1.1 million recovery, during the fourth quarter of 2019, on a commercial mortgage loan which had been partially charged off in the first quarter of 2019. The effect of the decreased level of net charge-offs was partially offset by the increase in Provision recorded for originated loan growth during the fourth quarter of 2019. Originated loans and leases increased by $183.0 million, or 5.8%, during the fourth quarter of 2019, as compared to an increase of $133.1 million, or 4.8%, during the same period in 2018.

  • The effective tax rate for the fourth quarter of 2019 increased as compared to the fourth quarter of 2018. The increase in the effective tax rate was primarily due to a $2.6 million tax benefit recorded in the fourth quarter of 2018 for certain discrete items included on our 2017 tax return which was filed during the fourth quarter of 2018. The effective tax rate for the years ended December 31, 2019 and December 31, 2018, excluding discrete income tax benefits, was 21.06% and 21.66%, respectively.

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

  • Total assets as of December 31, 2019 were $5.26 billion, an increase of $610.8 million from December 31, 2018. The increase is primarily due to the increases in portfolio loans and leases and available for sale investment securities discussed in the bullet points below, as well as $41.0 million of operating lease right-of-use assets as of December 31, 2019 included on the balance sheet as a result of a required accounting pronouncement adopted in the first quarter of 2019.
     
  • Available for sale investment securities as of December 31, 2019 totaled $1.01 billion, an increase of $268.5 million from December 31, 2018. The increase was primarily due to the purchase of $500.0 million of short-term U.S. Treasury securities included on the balance sheet as of December 31, 2019, an increase of $300.0 million as compared to $200.0 million as of December 31, 2018. This increase in U.S. Treasury securities coupled with a $76.1 million increase in mortgage-backed securities, respectively, were partially offset by decreases of $93.8 million, $7.4 million, and $6.0 million in U.S. government and agency securities, collateralized mortgage obligations, and state & political subdivision securities, respectively.
     
  • Total portfolio loans and leases of $3.69 billion as of December 31, 2019 increased by $262.2 million from December 31, 2018, an increase of 7.6%. Increases of $256.0 million, $20.5 million, $13.7 million, and $10.3 million in commercial mortgages, leases, commercial and industrial loans, and consumer loans, respectively, were offset by decreases of $21.2 million, $12.7 million, and $4.5 million in construction loans, home equity loans and lines, and residential mortgages, respectively.
     
  • The allowance for loan and lease losses (the “Allowance”) as of December 31, 2019 was $22.6 million, or 0.61% of portfolio loans and leases, as compared to $19.4 million, or 0.57% of portfolio loans and leases, as of December 31, 2018. In addition to the ratio of Allowance to portfolio loans and leases, management also calculates two non-GAAP measures: the Allowance for originated loans and leases as a percentage of originated loans and leases, which was 0.68% as of December 31, 2019, as compared to 0.67% as of December 31, 2018, and the Allowance plus the remaining loan mark as a percentage of gross loans, which was 0.91% as of December 31, 2019, as compared to 1.08% as of December 31, 2018. A reconciliation of these and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release.

    On January 1, 2020, the Corporation adopted ASU 2016-13 (Topic 326), Measurement of Credit Losses on Financial Instruments, or “CECL.” Management is finalizing certain key assumptions to be used in our CECL model and methodologies, however we expect an initial increase to the allowance for credit losses for loans and leases (“ACL”) not to exceed 130% of the December 31, 2019 Allowance, or an incremental increase to the December 31, 2019 Allowance of approximately $6.8 million. When finalized, this one-time increase to the ACL as a result of the adoption of the CECL model will be recorded, net of tax, as an adjustment to retained earnings effective January 1, 2020. This estimate is subject to change based on continuing refinement and validation of the model and methodologies as well as changes in forecasted macroeconomic conditions. Ongoing impacts of the CECL methodology will be dependent upon changes in economic conditions and forecasts, originated and acquired loan and lease portfolio composition, portfolio duration, and other factors.

  • Deposits of $3.84 billion as of December 31, 2019 increased $243.2 million from December 31, 2018. Increases of $280.2 million, $243.8 million, and $122.8 million in interest-bearing demand accounts, money market accounts, and wholesale non-maturity deposits, respectively, were offset by decreases of $236.0 million, $137.6 million, $26.6 million, and $3.4 million in wholesale time deposits, retail time deposits, savings accounts, and noninterest bearing deposits, respectively.

  • Borrowings of $665.9 million as of December 31, 2019, which include short-term borrowings, long-term FHLB advances, subordinated notes and junior subordinated debentures increased $238.1 million from December 31, 2018, primarily due to an increase of $240.9 million in short-term borrowings.

  • Wealth assets under management, administration, supervision and brokerage (“wealth assets”) totaled $16.55 billion as of December 31, 2019, an increase of $3.12 billion from December 31, 2018. Wealth assets consisted of $9.57 billion of wealth assets where fees are set at fixed amounts and $6.98 billion of wealth assets where fees are predominantly determined based on the market value of the assets held in their accounts as of December 31, 2019, an increase of $1.91 billion and $1.21 billion, respectively, from December 31, 2018.

  • The capital ratios for the Bank and the Corporation, as of December 31, 2019, 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.”

FORWARD LOOKING STATEMENTS AND SAFE HARBOR

This press release contains statements which, to the extent that they are not recitations of historical fact may constitute forward-looking statements for purposes of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. Such forward-looking statements may include financial and other projections as well as statements regarding the Corporation’s future plans, objectives, performance, revenues, growth, profits, operating expenses or the Corporation’s underlying assumptions. The words “may,” “would,” “should,” “could,” “will,” “likely,” “possibly,” “expect,” “anticipate,” “intend,” “indicate,” “estimate,” “target,” “potentially,” “promising,” “probably,” “outlook,” “predict,” “contemplate,” “continue,” “plan,” “forecast,” “project,” “are optimistic,” “are looking,” “are looking forward” and “believe” or other similar words and phrases may identify forward-looking statements. Persons reading this press release are cautioned that such statements are only predictions, and that the Corporation’s actual future results or performance may be materially different.

Such forward-looking statements involve known and unknown risks and uncertainties. A number of factors, many of which are beyond the Corporation's control, could cause our actual results, events or developments, or industry results, to be materially different from any future results, events or developments expressed, implied or anticipated by such forward-looking statements, and so our business and financial condition and results of operations could be materially and adversely affected. Such factors include, among others, our 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 or accounting standards, including ASU 2016-13 (Topic 326), “Measurement of Credit Losses on Financial Instruments,” commonly referenced as the Current Expected Credit Loss (“CECL”) model, which will change how we estimate credit losses and may increase the required level of our allowance for credit losses after adoption on January 1, 2020; unanticipated regulatory or legal proceedings, outcomes of litigation or other contingencies; cybersecurity events; the inability of key third-party providers to perform their obligations to us; our ability to attract and retain key personnel; competition in our marketplace; war or terrorist activities; material differences in the actual financial results, cost savings and revenue enhancements associated with our acquisitions; uncertainty regarding the future of LIBOR; and other factors as described in our securities filings. All forward-looking statements and information set forth herein are based on management’s current beliefs and assumptions as of the date hereof and speak only as of the date they are made. The Corporation does not undertake to update forward-looking statements.

For a complete discussion of the assumptions, risks and uncertainties related to our business, you are encouraged to review our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K, as updated by our quarterly or other reports subsequently filed with the U.S. Securities and Exchange Commission.

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,
2019		 September 30,
2019		 June 30,
2019		 March 31,
2019		 December 31,
2018		 December 31,
2019		 December 31,
2018
Consolidated Balance Sheet (selected items)             
Interest-bearing deposits with banks$42,328  $86,158  $49,643  $29,449  $34,357     
Investment securities 1,027,182   625,452   606,844   578,629   753,628     
Loans held for sale 4,249   5,767   6,333   2,884   1,749     
Portfolio loans and leases 3,689,313   3,540,747   3,534,665   3,523,514   3,427,154     
Allowance for loan and lease losses ("ALLL") (22,602)  (20,777)  (21,182)  (20,616)  (19,426)    
Goodwill and other intangible assets 203,143   204,096   205,050   206,006   207,467     
Total assets 5,263,259   4,828,641   4,736,565   4,631,993   4,652,485     
Deposits - interest-bearing 2,944,072   2,794,079   2,691,502   2,755,307   2,697,468     
Deposits - non-interest-bearing 898,173   904,409   940,911   882,310   901,619     
Short-term borrowings 493,219   203,471   207,828   124,214   252,367     
Long-term FHLB advances 52,269   44,735   47,941   55,407   55,374     
Subordinated notes 98,705   98,660   98,616   98,571   98,526     
Jr. subordinated debentures 21,753   21,709   21,665   21,622   21,580     
Total liabilities 4,651,032   4,227,706   4,146,410   4,056,886   4,087,781     
Total shareholders' equity 612,227   600,935   590,155   575,107   564,704     
              
Average Balance Sheet (selected items)             
Interest-bearing deposits with banks$66,060  $48,597  $37,843  $32,742  $38,957  $46,408  $37,550 
Investment securities 593,289   622,336   587,518   569,915   554,265   593,409   546,549 
Loans held for sale 4,160   4,375   3,353   1,214   2,005   3,286   3,551 
Portfolio loans and leases 3,594,449   3,528,548   3,520,866   3,476,525   3,397,479   3,530,416   3,352,744 
Total interest-earning assets 4,257,958   4,203,856   4,149,580   4,080,396   3,992,706   4,173,519   3,940,394 
Goodwill and intangible assets 203,663   204,637   205,593   206,716   207,893   205,143   207,343 
Total assets 4,775,407   4,760,074   4,651,625   4,545,129   4,413,000   4,683,901   4,352,122 
Deposits - interest-bearing 2,799,050   2,776,226   2,794,854   2,674,194   2,602,412   2,761,463   2,506,557 
Short-term borrowings 121,612   169,985   68,529   157,652   128,429   129,457   178,582 
Long-term FHLB advances 53,443   45,698   52,397   55,385   67,363   51,709   93,503 
Subordinated notes 98,681   98,634   98,587   98,542   98,497   98,612   98,462 
Jr. subordinated debentures 21,726   21,680   21,637   21,595   21,553   21,660   21,491 
Total interest-bearing liabilities 3,094,512   3,112,223   3,036,004   3,007,368   2,918,254   3,062,901   2,898,595 
Total liabilities 4,168,899   4,164,763   4,070,160   3,973,043   3,856,694   4,094,946   3,810,537 
Total shareholders' equity 606,508   595,311   581,465   572,086   556,306   588,955   541,585 
              
Income Statement             
Net interest income$35,985  $37,398  $36,611  $37,647  $37,987  $147,641  $149,471 
Provision for loan and lease losses 2,225   919   1,627   3,736   2,362   8,507   7,193 
Noninterest income 23,255   19,455   20,221   19,253   18,097   82,184   75,982 
Noninterest expense 36,430   35,173   35,188   39,724   34,845   146,515   140,303 
Income tax expense 4,202   4,402   4,239   2,764   1,746   15,607   14,165 
Net income 16,383   16,359   15,778   10,676   17,131   59,196   63,792 
Net loss attributable to noncontrolling interest (1)  (1)  (7)  (1)  (5)  (10)  - 
Net income attributable to Bryn Mawr Bank Corporation 16,384   16,360   15,785   10,677   17,136   59,206   63,792 
Basic earnings per share 0.81   0.81   0.78   0.53   0.85   2.94   3.15 
Diluted earnings per share 0.81   0.81   0.78   0.53   0.84   2.93   3.13 
Net income (core) (1) 16,384   16,360   15,785   14,230   17,167   62,759   70,620 
Basic earnings per share (core) (1) 0.81   0.81   0.78   0.71   0.85   3.12   3.49 
Diluted earnings per share (core) (1) 0.81   0.81   0.78   0.70   0.84   3.10   3.46 
Dividends paid or accrued per share 0.26   0.26   0.26   0.25   0.25   1.03   0.94 
Profitability Indicators             
Return on average assets 1.36%  1.36%  1.36%  0.95%  1.54%  1.26%  1.47%
Return on average equity 10.72%  10.90%  10.89%  7.57%  12.22%  10.05%  11.78%
Return on tangible equity(1) 16.85%  17.35%  17.62%  12.65%  20.37%  16.18%  19.91%
Return on tangible equity (core)(1) 16.85%  17.35%  17.62%  16.59%  20.40%  17.10%  21.95%
Return on average assets (core)(1) 1.36%  1.36%  1.36%  1.27%  1.54%  1.34%  1.62%
Return on average equity (core)(1) 10.72%  10.90%  10.89%  10.09%  12.24%  10.66%  13.04%
Tax-equivalent net interest margin 3.36%  3.54%  3.55%  3.75%  3.79%  3.55%  3.80%
Efficiency ratio(1) 59.89%  60.19%  60.23%  60.26%  60.35%  60.14%  57.17%
Share Data             
Closing share price$41.24  $36.51  $37.32  $36.13  $34.40     
Book value per common share$30.42  $29.86  $29.31  $28.52  $28.01     
Tangible book value per common share$20.36  $19.75  $19.16  $18.34  $17.75     
Price / book value 135.57%  122.27%  127.33%  126.68%  122.81%    
Price / tangible book value 202.55%  184.86%  194.78%  197.00%  193.80%    
Weighted average diluted shares outstanding 20,213,008   20,208,630   20,244,409   20,271,661   20,321,283   20,233,371   20,390,167 
Shares outstanding, end of period 20,126,296   20,124,193   20,131,854   20,167,729   20,163,816     
Wealth Management Information:             
Wealth assets under mgmt, administration, supervision and brokerage (2)$16,548,060  $15,609,786  $14,815,298  $14,736,512  $13,429,544     
Fees for wealth management services$11,672  $10,826  $11,510  $10,392  $11,017     
Capital Ratios(3)             
Bryn Mawr Trust Company ("BMTC")             
Tier I capital to risk weighted assets ("RWA") 11.48%  12.17%  11.83%  11.30%  11.42%    
Total capital to RWA 12.09%  12.75%  12.42%  11.87%  11.99%    
Tier I leverage ratio 9.37%  9.75%  9.61%  9.48%  9.48%    
Tangible equity ratio (1) 8.58%  9.75%  9.58%  9.34%  8.95%    
Common equity Tier I capital to RWA 11.48%  12.17%  11.83%  11.30%  11.42%    
              
Bryn Mawr Bank Corporation ("BMBC")             
Tier I capital to RWA 11.43%  11.33%  11.12%  10.72%  10.92%    
Total capital to RWA 14.70%  14.61%  14.44%  14.00%  14.30%    
Tier I leverage ratio 9.33%  9.07%  9.04%  8.99%  9.06%    
Tangible equity ratio (1) 8.10%  8.60%  8.51%  8.35%  8.05%    
Common equity Tier I capital to RWA 10.87%  10.75%  10.54%  10.14%  10.32%    
              
Asset Quality Indicators             
Net loan and lease charge-offs ("NCO"s)$400  $1,324  $1,061  $2,546  $1,620  $5,331  $5,292 
              
Nonperforming loans and leases ("NPL"s)$10,648  $14,119  $12,179  $19,283  $12,820     
Other real estate owned ("OREO") -   72   155   84   417     
Total nonperforming assets ("NPA"s)$ 10,648  $ 14,191  $ 12,334  $ 19,367  $ 13,237     
              
Nonperforming loans and leases 30 or more days past due$6,314  $4,940  $8,224  $8,489  $7,765     
Performing loans and leases 30 to 89 days past due 7,196   5,273   9,466   6,432   5,464     
Performing loans and leases 90 or more days past due -   -   -   -   -     
Total delinquent loans and leases$ 13,510  $ 10,213  $ 17,690  $ 14,921  $ 13,229     
              
Delinquent loans and leases to total loans and leases 0.37%  0.29%  0.50%  0.42%  0.39%    
Delinquent performing loans and leases to total loans and leases 0.19%  0.15%  0.27%  0.18%  0.16%    
NCOs / average loans and leases (annualized) 0.04%  0.15%  0.12%  0.30%  0.19%  0.15%  0.16%
NPLs / total portfolio loans and leases 0.29%  0.40%  0.34%  0.55%  0.37%    
NPAs / total loans and leases and OREO 0.29%  0.40%  0.35%  0.55%  0.39%    
NPAs / total assets 0.20%  0.29%  0.26%  0.42%  0.28%    
ALLL / NPLs 212.27%  147.16%  173.92%  106.91%  151.53%    
ALLL / portfolio loans 0.61%  0.59%  0.60%  0.59%  0.57%    
ALLL for originated loans and leases / Originated loans and leases (1) 0.68%  0.66%  0.68%  0.68%  0.67%    
(Total ALLL + Loan mark) / Total Gross portfolio loans and leases (1) 0.91%  0.92%  1.00%  1.03%  1.08%    
              
Troubled debt restructurings ("TDR"s) included in NPLs$3,018  $5,755  $4,190  $4,057  $1,217     
TDRs in compliance with modified terms 5,071   5,069   5,141   5,149   9,745     
Total TDRs$ 8,089  $ 10,824  $ 9,331  $ 9,206  $ 10,962     
              
(1) Non-GAAP measure - see Appendix for Non-GAAP to GAAP reconciliation. 
(2) Brokerage assets represent assets held at a registered broker dealer under a clearing agreement.
(3) Capital Ratios for the current quarter are to be considered preliminary until the Call Reports are filed.
              


          
Bryn Mawr Bank Corporation 
Detailed Balance Sheets (unaudited) 
(dollars in thousands) 
          
 December 31,
2019		 September 30,
2019		 June 30,
2019		 March 31,
2019		 December 31,
2018
Assets         
Cash and due from banks$11,603  $8,582  $13,742  $13,656  $14,099 
Interest-bearing deposits with banks 42,328   86,158   49,643   29,449   34,357 
Cash and cash equivalents 53,931   94,740   63,385   43,105   48,456 
Investment securities, available for sale 1,005,984   604,181   588,119   559,983   737,442 
Investment securities, held to maturity 12,577   12,947   10,209   10,457   8,684 
Investment securities, trading 8,621   8,324   8,516   8,189   7,502 
Loans held for sale 4,249   5,767   6,333   2,884   1,749 
Portfolio loans and leases, originated 3,320,816   3,137,769   3,088,849   3,032,270   2,885,251 
Portfolio loans and leases, acquired 368,497   402,978   445,816   491,244   541,903 
Total portfolio loans and leases 3,689,313   3,540,747   3,534,665   3,523,514   3,427,154 
Less: Allowance for losses on originated loan and leases (22,526)  (20,675)  (21,076)  (20,519)  (19,329)
Less: Allowance for losses on acquired loan and leases (76)  (102)  (106)  (97)  (97)
Total allowance for loan and lease losses (22,602)  (20,777)  (21,182)  (20,616)  (19,426)
Net portfolio loans and leases 3,666,711   3,519,970   3,513,483   3,502,898   3,407,728 
Premises and equipment 64,965   66,439   68,092   67,279   65,648 
Operating lease right-of-use assets 40,961   42,200   43,116   43,985   - 
Accrued interest receivable 12,482   12,746   13,312   13,123   12,585 
Mortgage servicing rights 4,450   4,580   4,744   4,910   5,047 
Bank owned life insurance 59,079   58,749   58,437   58,138   57,844 
Federal Home Loan Bank ("FHLB") stock 23,744   16,148   14,677   10,526   14,530 
Goodwill 184,012   184,012   184,012   184,012   184,012 
Intangible assets 19,131   20,084   21,038   21,994   23,455 
Other investments 16,683   16,683   16,517   16,526   16,526 
Other assets 85,679   161,071   122,575   83,984   61,277 
Total assets$5,263,259  $4,828,641  $4,736,565  $4,631,993  $4,652,485 
          
Liabilities         
Deposits         
Noninterest-bearing$898,173  $904,409  $940,911  $882,310  $901,619 
Interest-bearing 2,944,072   2,794,079   2,691,502   2,755,307   2,697,468 
Total deposits 3,842,245   3,698,488   3,632,413   3,637,617   3,599,087 
Short-term borrowings 493,219   203,471   207,828   124,214   252,367 
Long-term FHLB advances 52,269   44,735   47,941   55,407   55,374 
Subordinated notes 98,705   98,660   98,616   98,571   98,526 
Jr. subordinated debentures 21,753   21,709   21,665   21,622   21,580 
Operating lease liabilities 45,258   46,506   47,393   48,224   - 
Accrued interest payable 6,248   9,015   8,244   8,674   6,652 
Other liabilities 91,335   105,122   82,310   62,557   54,195 
Total liabilities 4,651,032   4,227,706   4,146,410   4,056,886   4,087,781 
          
Shareholders' equity         
Common stock 24,650   24,646   24,583   24,577   24,545 
Paid-in capital in excess of par value 378,606   377,806   376,652   375,655   374,010 
Less: common stock held in treasury, at cost (81,174)  (81,089)  (78,583)  (76,974)  (75,883)
Accumulated other comprehensive income (loss), net of tax 2,187   2,698   1,700   (3,278)  (7,513)
Retained earnings 288,653   277,568   266,496   255,813   250,230 
Total Bryn Mawr Bank Corporation shareholders' equity 612,922   601,629   590,848   575,793   565,389 
Noncontrolling interest (695)  (694)  (693)  (686)  (685)
Total shareholders' equity 612,227   600,935   590,155   575,107   564,704 
Total liabilities and shareholders' equity$5,263,259  $4,828,641  $4,736,565  $4,631,993  $4,652,485 
          


           
Bryn Mawr Bank Corporation  
Supplemental Balance Sheet Information (unaudited)  
(dollars in thousands)  
 Portfolio Loans and Leases as of
 December 31,
2019		 September 30,
2019		 June 30,
2019		 March 31,
2019		 December 31,
2018
Commercial mortgages$1,913,430  $1,762,382  $1,755,798  $1,746,695  $1,657,436 
Home equity loans and lines 194,640   198,030   203,852   204,791   207,351 
Residential mortgages 489,903   505,304   506,093   502,379   494,355 
Construction 159,867   151,593   152,554   159,761   181,078 
Total real estate loans 2,757,840   2,617,309   2,618,297   2,613,626   2,540,220 
Commercial & Industrial 709,257   709,808   704,167   705,701   695,584 
Consumer 57,138   50,481   49,335   47,821   46,814 
Leases 165,078   163,149   162,866   156,366   144,536 
Total non-real estate loans and leases 931,473   923,438   916,368   909,888   886,934 
Total portfolio loans and leases$3,689,313  $3,540,747  $3,534,665  $3,523,514  $3,427,154 
           
           
 Nonperforming Loans and Leases as of
 December 31,
2019		 September 30,
2019		 June 30,
2019		 March 31,
2019		 December 31,
2018 
Commercial mortgages$4,270  $7,819  $6,072  $5,558  $2,568 
Home equity loans and lines 779   790   49   6,904   3,616 
Residential mortgages 318   301   701   2,863   3,452 
Total nonperforming real estate loans 5,367   8,910   6,822   15,325   9,636 
Commercial & Industrial 4,337   4,141   4,495   2,965   2,101 
Consumer 61   75   60   80   108 
Leases 883   993   802   913   975 
Total nonperforming non-real estate loans and leases 5,281   5,209   5,357   3,958   3,184 
Total nonperforming portfolio loans and leases$10,648  $14,119  $12,179  $19,283  $12,820 
           
           
 Net Loan and Lease Charge-Offs (Recoveries) for the Three Months Ended
 December 31,
2019		 September 30,
2019		 June 30,
2019		 March 31,
2019		 December 31,
2018 
Commercial mortgage$(781) $656  $(3) $1,373  $249 
Home equity loans and lines 33   (22)  180   46   107 
Residential 95   (7)  339   329   304 
Construction (1)  (1)  (1)  (1)  - 
Total net charge-offs of real estate loans (654)  626   515   1,747   660 
Commercial & Industrial 248   8   (18)  391   298 
Consumer 223   181   119   94   147 
Leases 583   509   445   314   515 
Total net charge-offs of non-real estate loans and leases 1,054   698   546   799   960 
Total net charge-offs$400  $1,324  $1,061  $2,546  $1,620 
           


          
Bryn Mawr Bank Corporation 
Supplemental Balance Sheet Information (unaudited) 
(dollars in thousands) 
 Investment Securities Available for Sale, at Fair Value
 December 31,
2019		 September 30,
2019		 June 30,
2019		 March 31,
2019		 December 31,
2018
U.S. Treasury securities$500,101  $101  $101  $100  $200,013 
Obligations of the U.S. Government and agencies 102,020   172,753   192,799   186,746   195,855 
State & political subdivisions - tax-free 5,379   6,327   6,700   8,468   11,162 
State & political subdivisions - taxable -   -   170   170   170 
Mortgage-backed securities 366,002   388,891   348,975   322,913   289,890 
Collateralized mortgage obligations 31,832   35,459   38,724   40,486   39,252 
Other debt securities 650   650   650   1,100   1,100 
Total investment securities available for sale, at fair value$1,005,984  $604,181  $588,119  $559,983  $737,442 
          
          
 Unrealized Gain (Loss) on Investment Securities Available for Sale
 December 31,
2019		 September 30,
2019		 June 30,
2019		 March 31,
2019		 December 31,
2018
U.S. Treasury securities$35  $1  $1  $-  $(13)
Obligations of the U.S. Government and agencies (159)  188   275   (1,334)  (2,749)
State & political subdivisions - tax-free 13   8   8   (5)  (39)
State & political subdivisions - taxable -   -   -   -   (1)
Mortgage-backed securities 5,025   4,605   3,364   (696)  (4,186)
Collateralized mortgage obligations 36   180   89   (510)  (898)
Other debt securities -   -   -   -   - 
Total unrealized gains (losses) on investment securities available for sale$4,950  $4,982  $3,737  $(2,545) $(7,886)
          
          
 Deposits
 December 31,
2019		 September 30,
2019		 June 30,
2019		 March 31,
2019		 December 31,
2018
Interest-bearing deposits:         
Interest-bearing demand$944,915  $778,809  $745,134  $664,683  $664,749 
Money market 1,106,478   983,170   966,596   961,348   862,644 
Savings 220,450   248,539   263,830   265,613   247,081 
Retail time deposits 405,123   467,346   502,745   531,522   542,702 
Wholesale non-maturity deposits 177,865   274,121   100,047   47,744   55,031 
Wholesale time deposits 89,241   42,094   113,150   284,397   325,261 
Total interest-bearing deposits 2,944,072   2,794,079   2,691,502   2,755,307   2,697,468 
Noninterest-bearing deposits 898,173   904,409   940,911   882,310   901,619 
Total deposits$3,842,245  $3,698,488  $3,632,413  $3,637,617  $3,599,087 
          



              
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,
2019		 September 30,
2019		 June 30,
2019		 March 31,
2019		 December 31,
2018		 December 31,
2019		 December 31,
2018
Interest income:             
Interest and fees on loans and leases$43,220  $45,527  $44,783  $44,837  $44,157  $178,367  $168,638 
Interest on cash and cash equivalents 195   143   73   132   83   543   264 
Interest on investment securities 3,545   3,903   3,532   3,499   3,294   14,479   12,153 
Total interest income 46,960   49,573   48,388   48,468   47,534   193,389   181,055 
Interest expense:             
Interest on deposits 8,674   9,510   9,655   8,097   7,048   35,936   20,552 
Interest on short-term borrowings 555   937   357   943   681   2,792   3,392 
Interest on FHLB advances 279   243   269   278   331   1,069   1,777 
Interest on jr. subordinated debentures 323   340   352   358   342   1,373   1,288 
Interest on subordinated notes 1,144   1,145   1,144   1,145   1,145   4,578   4,575 
Total interest expense 10,975   12,175   11,777   10,821   9,547   45,748   31,584 
Net interest income 35,985   37,398   36,611   37,647   37,987   147,641   149,471 
Provision for loan and lease losses (the "Provision") 2,225   919   1,627   3,736   2,362   8,507   7,193 
Net interest income after Provision 33,760   36,479   34,984   33,911   35,625   139,134   142,278 
Noninterest income:             
Fees for wealth management services 11,672   10,826   11,510   10,392   11,017   44,400   42,326 
Insurance commissions 1,666   1,842   1,697   1,672   1,459   6,877   6,808 
Capital markets revenue 5,455   2,113   1,489   2,219   1,367   11,276   4,848 
Service charges on deposits 858   856   852   808   798   3,374   2,989 
Loan servicing and other fees 489   555   553   609   539   2,206   2,259 
Net gain on sale of loans 597   674   752   319   1,606   2,342   3,283 
Net gain on sale of investment securities available for sale -   -   -   -   -   -   7 
Net (loss) gain on sale of other real estate owned (48)  (12)  -   (24)  3   (84)  295 
Dividends on FHLB and FRB stocks 432   346   316   411   305   1,505   1,621 
Other operating income 2,134   2,255   3,052   2,847   1,003   10,288   11,546 
Total noninterest income 23,255   19,455   20,221   19,253   18,097   82,184   75,982 
Noninterest expense:             
Salaries and wages 18,667   17,765   17,038   20,901   17,921   74,371   66,671 
Employee benefits 2,685   3,288   3,317   4,166   2,977   13,456   12,918 
Occupancy and bank premises 3,206   3,008   3,125   3,252   3,135   12,591   11,599 
Furniture, fixtures and equipment 2,401   2,335   2,568   2,389   2,370   9,693   8,407 
Advertising 599   587   504   415   540   2,105   1,719 
Amortization of intangible assets 953   954   956   938   997   3,801   3,656 
Impairment (recovery) of mortgage servicing rights ("MSRs") 13   (19)  10   17   101   21   27 
Due diligence, merger-related and merger integration expenses -   -   -   -   -   -   7,761 
Professional fees 1,754   1,044   1,316   1,320   1,526   5,434   4,203 
Pennsylvania bank shares tax 42   514   513   409   374   1,478   1,792 
Data processing 1,517   1,377   1,303   1,320   1,340   5,517   4,942 
Other operating expenses 4,593   4,320   4,538   4,597   3,564   18,048   16,608 
Total noninterest expense 36,430   35,173   35,188   39,724   34,845   146,515   140,303 
Income before income taxes 20,585   20,761   20,017   13,440   18,877   74,803   77,957 
Income tax expense 4,202   4,402   4,239   2,764   1,746   15,607   14,165 
Net income$16,383  $16,359  $15,778  $10,676  $17,131  $59,196  $63,792 
Net (loss) income attributable to noncontrolling interest (1)  (1)  (7)  (1)  (5)  (10)  - 
Net income attributable to Bryn Mawr Bank Corporation$16,384  $16,360  $15,785  $10,677  $17,136  $59,206  $63,792 
              
Per share data:             
Weighted average shares outstanding 20,124,553   20,132,117   20,144,651   20,168,498   20,225,993   20,142,306   20,234,792 
Dilutive common shares 88,455   76,513   99,758   103,163   95,290   91,065   155,375 
Weighted average diluted shares 20,213,008   20,208,630   20,244,409   20,271,661   20,321,283   20,233,371   20,390,167 
Basic earnings per common share$0.81  $0.81  $0.78  $0.53  $0.85  $2.94  $3.15 
Diluted earnings per common share$0.81  $0.81  $0.78  $0.53  $0.84  $2.93  $3.13 
Dividends paid or accrued per common share$0.26  $0.26  $0.26  $0.25  $0.25  $1.03  $0.94 
Effective tax rate 20.41%  21.20%  21.18%  20.57%  9.25%  20.86%  18.17%
                            



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,
2019		September 30,
2019		June 30,
2019		March 31,
2019		December 31,
2018		 December 31,
2019		December 31,
2018
  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 $66,060 $195 1.17%$48,597 $143 1.17%$37,843 $73 0.77%$32,742 $132 1.64%$38,957 $83 0.85% $46,408 $543 1.17%$37,550 $264 0.70%
Investment securities - available for sale:                       
Taxable  566,359  3,334 2.34% 594,975  3,765 2.51% 560,999  3,400 2.43% 543,687  3,363 2.51% 524,117  3,075 2.33%  566,645  13,862 2.45% 513,114  11,457 2.23%
Tax-exempt  5,844  33 2.24% 6,594  36 2.17% 7,530  43 2.29% 9,795  55 2.28% 13,184  70 2.11%  7,428  167 2.25% 16,966  346 2.04%
Total investment securities - available for sale  572,203  3,367 2.33% 601,569  3,801 2.51% 568,529  3,443 2.43% 553,482  3,418 2.50% 537,301  3,145 2.32%  574,073  14,029 2.44% 530,080  11,803 2.23%
                        
Investment securities - held to maturity  12,756  84 2.61% 12,360  80 2.57% 10,417  71 2.73% 8,804  67 3.09% 8,761  63 2.85%  11,099  302 2.72% 8,232  234 2.84%
Investment securities - trading  8,330  99 4.72% 8,407  27 1.27% 8,572  24 1.12% 7,629  22 1.17% 8,203  96 4.64%  8,237  172 2.09% 8,237  169 2.05%
                        
Loans and leases *  3,598,609  43,326 4.78% 3,532,923  45,642 5.13% 3,524,219  44,903 5.11% 3,477,739  44,958 5.24% 3,399,484  44,274 5.17%  3,533,702  178,829 5.06% 3,356,295  169,024 5.04%
                        
Total interest-earning assets  4,257,958  47,071 4.39% 4,203,856  49,693 4.69% 4,149,580  48,514 4.69% 4,080,396  48,597 4.83% 3,992,706  47,661 4.74%  4,173,519  193,875 4.65% 3,940,394  181,494 4.61%
                        
Cash and due from banks  9,829    12,890    13,725    14,414    13,962     12,703    9,853   
Less: allowance for loan and lease losses  (21,124)   (21,438)   (20,844)   (19,887)   (18,625)    (20,828)   (18,447)  
Other assets  528,744    564,766    509,164    470,206    424,957     518,507    420,322   
                        
Total assets $4,775,407   $4,760,074   $4,651,625   $4,545,129   $4,413,000    $4,683,901   $4,352,122   
                        
Liabilities:                       
                        
Interest-bearing deposits:                       
Savings, NOW and market rate deposits $2,149,623 $5,659 1.04%$1,996,181 $5,445 1.08%$1,928,755 $5,040 1.05%$1,798,103 $3,764 0.85%$1,704,065 $2,883 0.67% $1,969,205 $19,908 1.01%$1,715,239 $8,860 0.52%
Wholesale deposits  214,229  1,024 1.90% 299,309  1,729 2.29% 345,782  2,143 2.49% 342,696  2,012 2.38% 346,134  1,986 2.28%  300,148  6,908 2.30% 251,384  5,021 2.00%
Retail time deposits  435,198  1,991 1.82% 480,736  2,336 1.93% 520,317  2,472 1.91% 533,395  2,321 1.76% 552,213  2,179 1.57%  492,110  9,120 1.85% 539,934  6,671 1.24%
Total interest-bearing deposits  2,799,050  8,674 1.23% 2,776,226  9,510 1.36% 2,794,854  9,655 1.39% 2,674,194  8,097 1.23% 2,602,412  7,048 1.07%  2,761,463  35,936 1.30% 2,506,557  20,552 0.82%
                        
Borrowings:                       
Short-term borrowings  121,612  555 1.81% 169,985  937 2.19% 68,529  357 2.09% 157,652  943 2.43% 128,429  681 2.10%  129,457  2,792 2.16% 178,582  3,392 1.90%
Long-term FHLB advances  53,443  279 2.07% 45,698  243 2.11% 52,397  269 2.06% 55,385  278 2.04% 67,363  331 1.95%  51,709  1,069 2.07% 93,503  1,777 1.90%
Subordinated notes  98,681  1,144 4.60% 98,634  1,145 4.61% 98,587  1,144 4.65% 98,542  1,145 4.71% 98,497  1,145 4.61%  98,612  4,578 4.64% 98,462  4,575 4.65%
Jr. subordinated debt  21,726  323 5.90% 21,680  340 6.22% 21,637  352 6.53% 21,595  358 6.72% 21,553  342 6.30%  21,660  1,373 6.34% 21,491  1,288 5.99%
Total borrowings  295,462  2,301 3.09% 335,997  2,665 3.15% 241,150  2,122 3.53% 333,174  2,724 3.32% 315,842  2,499 3.14%  301,438  9,812 3.26% 392,038  11,032 2.81%
                        
Total interest-bearing liabilities  3,094,512  10,975 1.41% 3,112,223  12,175 1.55% 3,036,004  11,777 1.56% 3,007,368  10,821 1.46% 2,918,254  9,547 1.30%  3,062,901  45,748 1.49% 2,898,595  31,584 1.09%
                        
Noninterest-bearing deposits  915,128    903,314    909,945    871,726    878,047     900,156    856,506   
Other liabilities  159,259    149,226    124,211    93,949    60,393     131,889    55,436   
Total noninterest-bearing liabilities  1,074,387    1,052,540    1,034,156    965,675    938,440     1,032,045    911,942   
                        
Total liabilities  4,168,899    4,164,763    4,070,160    3,973,043    3,856,694     4,094,946    3,810,537   
                        
Shareholders' equity  606,508    595,311    581,465    572,086    556,306     588,955    541,585   
                        
Total liabilities and shareholders' equity $4,775,407   $4,760,074   $4,651,625   $4,545,129   $4,413,000    $4,683,901   $4,352,122   
                        
Net interest spread   2.98%  3.14%  3.13%  3.37%  3.44%   3.16%  3.52%
Effect of noninterest-bearing sources   0.38%  0.40%  0.42%  0.38%  0.35%   0.39%  0.28%
                        
Tax-equivalent net interest margin  $36,096 3.36% $37,518 3.54% $36,737 3.55% $37,776 3.75% $38,114 3.79%  $148,127 3.55% $149,910 3.80%
                        
Tax-equivalent adjustment  $111 0.01% $120 0.01% $126 0.01% $129 0.01% $127 0.01%  $486 0.01% $439 0.01%
                        
Supplemental Information Regarding Accretion of Fair Value Marks
 
  InterestIncrease (Decrease)Effect on Yield or RateInterestIncrease (Decrease)Effect on Yield or RateInterestIncrease (Decrease)Effect on Yield or RateInterestIncrease (Decrease)Effect on Yield or RateInterestIncrease (Decrease)Effect on Yield or Rate  Increase (Decrease)Effect on Yield or Rate Increase (Decrease)Effect on Yield or Rate
Loans and leases Income$1,027 0.11% $1,501 0.17% $1,193 0.14% $1,997 0.23% $2,492 0.29%  $5,718 0.16% $8,603 0.26%
Retail time deposits Expense$(134)-0.12% $(151)-0.12% $(171)-0.13% $(222)-0.17% $(279)-0.20%   (678)-0.14%  (1,309)-0.24%
Long-term FHLB advances Expense$34 0.25% $34 0.30% $34 0.26% $33 0.24% $34 0.20%   135 0.26%  106 0.11%
Jr. subordinated debt Expense$44 0.80% $44 0.81% $43 0.80% $42 0.79% $42 0.77%   173 0.80%  164 0.76%
Net interest income from fair value marks  $1,083   $1,574   $1,287   $2,144   $2,695    $6,088   $9,642  
                                      
Purchase accounting effect on tax-equivalent margin  0.10%  0.15%  0.12%  0.21%  0.27%   0.15%  0.24%
                        
* 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,
2019		 September 30,
2019		 June 30,
2019		 March 31,
2019		 December 31,
2018		 December 31,
2019		 December 31,
2018
Reconciliation of Net Income to Net Income (core):             
Net income attributable to BMBC (a GAAP measure)$16,384  $16,360  $15,785  $10,677  $17,136  $59,206  $63,792 
Less: Tax-effected non-core noninterest income:             
Gain on sale of investment securities available for sale -   -   -   -   -   -   (6)
Add: Tax-effected non-core noninterest expense items:             
Due diligence, merger-related and merger integration expenses -   -   -   -   -   -   6,131 
Voluntary years of service incentive program expenses -   -   -   3,553   -   3,553   - 
Add: Federal income tax expense related to re-measurement of net deferred tax asset due to tax reform legislation -   -   -   -   31   -   703 
Net income (core) (a non-GAAP measure)$ 16,384  $ 16,360  $ 15,785  $ 14,230  $ 17,167  $ 62,759  $ 70,620 
              
Calculation of Basic and Diluted Earnings per Common Share (core):             
Weighted average common shares outstanding 20,124,553   20,132,117   20,144,651   20,168,498   20,225,993   20,142,306   20,234,792 
Dilutive common shares 88,455   76,513   99,758   103,163   95,290   91,065   155,375 
Weighted average diluted shares 20,213,008   20,208,630   20,244,409   20,271,661   20,321,283   20,233,371   20,390,167 
Basic earnings per common share (core) (a non-GAAP measure)$0.81  $0.81  $0.78  $0.71  $0.85  $3.12  $3.49 
Diluted earnings per common share (core) (a non-GAAP measure)$0.81  $0.81  $0.78  $0.70  $0.84  $3.10  $3.46 
              
Calculation of Return on Average Tangible Equity:             
Net income attributable to BMBC (a GAAP measure)$16,384  $16,360  $15,785  $10,677  $17,136  $59,206  $63,792 
Add: Tax-effected amortization and impairment of intangible assets 753   754   755   741   787   3,003   2,888 
Net tangible income (numerator)$17,137  $17,114  $16,540  $11,418  $17,923  $62,209  $66,680 
              
Average shareholders' equity$606,508  $595,311  $581,465  $572,086  $556,306  $588,955  $541,585 
Less: Average Noncontrolling interest 694   693   688   685   681   690   684 
Less: Average goodwill and intangible assets (203,663)  (204,637)  (205,593)  (206,716)  (207,893)  (205,143)  (207,343)
Net average tangible equity (denominator)$403,539  $391,367  $376,560  $366,055  $349,094  $384,502  $334,926 
              
Return on tangible equity (a non-GAAP measure) 16.85%  17.35%  17.62%  12.65%  20.37%  16.18%  19.91%
              
Calculation of Return on Average Tangible Equity (core):             
Net income (core) (a non-GAAP measure)$16,384  $16,360  $15,785  $14,230  $17,167  $62,759  $70,620 
Add: Tax-effected amortization and impairment of intangible assets 753   754   755   741   787   3,003   2,888 
Net tangible income (core) (numerator)$17,137  $17,114  $16,540  $14,971  $17,954  $65,762  $73,508 
              
Average shareholders' equity$606,508  $595,311  $581,465  $572,086  $556,306  $588,955  $541,585 
Less: Average Noncontrolling interest 694   693   688   685   681   690   684 
Less: Average goodwill and intangible assets (203,663)  (204,637)  (205,593)  (206,716)  (207,893)  (205,143)  (207,343)
Net average tangible equity (denominator)$403,539  $391,367  $376,560  $366,055  $349,094  $384,502  $334,926 
              
Return on tangible equity (core) (a non-GAAP measure) 16.85%  17.35%  17.62%  16.59%  20.40%  17.10%  21.95%
              
Calculation of Tangible Equity Ratio (BMBC):             
Total shareholders' equity$612,227  $600,935  $590,155  $575,107  $564,704     
Less: Noncontrolling interest 695   694   693   686   685     
Less: Goodwill and intangible assets (203,143)  (204,096)  (205,050)  (206,006)  (207,467)    
Net tangible equity (numerator)$409,779  $397,533  $385,798  $369,787  $357,922     
              
Total assets$5,263,259  $4,828,641  $4,736,565  $4,631,993  $4,652,485     
Less: Goodwill and intangible assets (203,143)  (204,096)  (205,050)  (206,006)  (207,467)    
Tangible assets (denominator)$5,060,116  $4,624,545  $4,531,515  $4,425,987  $4,445,018     
              
Tangible equity ratio (BMBC)(1) 8.10%  8.60%  8.51%  8.35%  8.05%    
              
Calculation of Tangible Equity Ratio (BMTC):             
Total shareholders' equity$624,030  $641,565  $625,464  $605,985  $591,695     
Less: Noncontrolling interest 695   694   693   686   685     
Less: Goodwill and intangible assets (190,694)  (191,572)  (192,450)  (193,329)  (194,715)    
Net tangible equity (numerator)$434,031  $450,687  $433,707  $413,342  $397,665     
              
Total assets$5,247,649  $4,813,704  $4,721,394  $4,616,724  $4,637,481     
Less: Goodwill and intangible assets (190,694)  (191,572)  (192,450)  (193,329)  (194,715)    
Tangible assets (denominator)$5,056,955  $4,622,132  $4,528,944  $4,423,395  $4,442,766     
              
Tangible equity ratio (BMTC)(1) 8.58%  9.75%  9.58%  9.34%  8.95%    
              
Calculation of Return on Average Assets (core)             
Return on average assets (GAAP) 1.36%  1.36%  1.36%  0.95%  1.54%  1.26%  1.47%
Effect of adjustment to GAAP net income to core net income 0.00%  0.00%  0.00%  0.32%  0.00%  0.08%  0.15%
Return on average assets (core) 1.36%  1.36%  1.36%  1.27%  1.54%  1.34%  1.62%
              
Calculation of Return on Average Equity (core)             
Return on average equity (GAAP) 10.72%  10.90%  10.89%  7.57%  12.22%  10.05%  11.78%
Effect of adjustment to GAAP net income to core net income 0.00%  0.00%  0.00%  2.52%  0.02%  0.61%  1.26%
Return on average equity (core) 10.72%  10.90%  10.89%  10.09%  12.24%  10.66%  13.04%
              
Calculation of Tax-equivalent net interest margin adjusting for the impact of purchase accounting:             
Tax-equivalent net interest margin 3.36%  3.54%  3.55%  3.75%  3.79%  3.55%  3.80%
Effect of fair value marks 0.10%  0.15%  0.12%  0.21%  0.27%  0.15%  0.24%
Tax-equivalent net interest margin adjusting for the impact of purchase accounting 3.26%  3.39%  3.43%  3.54%  3.52%  3.40%  3.56%
(1)Capital Ratios for the current quarter are to be considered preliminary until the Call Reports are filed.
 
Calculation of Tax-equivalent net interest income adjusting for the impact of purchase accounting:             
Tax-equivalent net interest income$36,096  $37,518  $36,737  $37,776  $38,114  $148,127  $149,910 
Effect of fair value marks 1,083   1,574   1,287   2,144   2,695   6,088   9,642 
Tax-equivalent net interest income adjusting for the impact of purchase accounting$35,013  $35,944  $35,450  $35,632  $35,419  $142,039  $140,268 
              
Calculation of Efficiency Ratio:             
Noninterest expense$36,430  $35,173  $35,188  $39,724  $34,845  $146,515  $140,303 
Less: certain noninterest expense items*:             
Amortization of intangibles (953)  (954)  (956)  (938)  (997)  (3,801)  (3,656)
Due diligence, merger-related and merger integration expenses -   -   -   -   -   -   (7,761)
Voluntary years of service incentive program expenses -   -   -   (4,498)  -   (4,498)  - 
Noninterest expense (adjusted) (numerator)$35,477  $34,219  $34,232  $34,288  $33,848  $138,216  $128,886 
              
Noninterest income$23,255  $19,455  $20,221  $19,253  $18,097  $82,184  $75,982 
Less: non-core noninterest income items:             
Gain on sale of investment securities available for sale -   -   -   -   -   -   (7)
Noninterest income (core)$23,255  $19,455  $20,221  $19,253  $18,097  $82,184  $75,975 
Net interest income 35,985   37,398   36,611   37,647   37,987   147,641   149,471 
Noninterest income (core) and net interest income (denominator)$59,240  $56,853  $56,832  $56,900  $56,084  $229,825  $225,446 
              
Efficiency ratio 59.89%  60.19%  60.23%  60.26%  60.35%  60.14%  57.17%
* 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 Allowance Information Used to Calculate Non-GAAP Measures            
              
Total Allowance$22,602  $20,777  $21,182  $20,616  $19,426     
Less: Allowance on acquired loans 76   102   106   97   97     
Allowance on originated loans and leases$22,526  $20,675  $21,076  $20,519  $19,329     
              
Total Allowance$22,602  $20,777  $21,182  $20,616  $19,426     
Loan mark on acquired loans 10,905   11,948   14,174   15,841   17,822     
Total Allowance + Loan mark$33,507  $32,725  $35,356  $36,457  $37,248     
              
Total Portfolio loans and leases$3,689,313  $3,540,747  $3,534,665  $3,523,514  $3,427,154     
Less: Originated loans and leases 3,320,816   3,137,769   3,088,849   3,032,270   2,885,251     
Net acquired loans$368,497  $402,978  $445,816  $491,244  $541,903     
Add: Loan mark on acquired loans 10,905   11,948   14,174   15,841   17,822     
Gross acquired loans (excludes loan mark)$379,402  $414,926  $459,990  $507,085  $559,725     
Originated loans and leases 3,320,816   3,137,769   3,088,849   3,032,270   2,885,251     
Total Gross portfolio loans and leases$3,700,218  $3,552,695  $3,548,839  $3,539,355  $3,444,976     

 

 

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