Bryn Mawr Bank Corporation Reports Record Quarterly Earnings of $21.3 Million, Declares $0.28 Dividend
$BMTC
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BRYN 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 www.sec.gov. All forward-looking statements, expressed or implied, included herein are expressly qualified in their entirety by the cautionary statements contained or referred to herein. The actual results or developments anticipated may not be realized or, even if substantially realized, they may not have the expected consequences to or effects on the Corporation or its businesses or operations. We caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date on which they are made. The Corporation undertakes no obligation, and specifically declines any obligation, to revise or update any forward-looking statements, whether as a result of new information, future developments or otherwise, except as specifically required by law.
| 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 | |||||||||||||||||
