Bryn Mawr Bank Corporation Reports Third Quarter Net Income of $13.2 Million

Nachrichtenquelle: globenewswire
22.10.2020, 22:30  |  120   |   |   

BRYN MAWR, Pa., Oct. 22, 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 $13.2 million, or $0.66 diluted earnings per share, for the three months ended September 30, 2020, as compared to $15.0 million, or $0.75 diluted earnings per share, for the three months ended June 30, 2020, and $16.4 million, or $0.81 diluted earnings per share, for the three months ended September 30, 2019.

As detailed in the appendix to this earnings release, management calculates core net income, a non-GAAP measure. There were no meaningful non-core income or expense items for the three months ended September 30, 2020 or September 30, 2019. Core net income for the three months ended June 30, 2020, which excludes the gain on sale of Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”) loans, one-time costs associated with the wind-down of BMT Investment Advisers, a wholly-owned subsidiary of the Corporation, and severance associated with certain staff reductions, was $15.4 million, or $0.77 diluted earnings per share. A reconciliation of core net income and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release.

“We continue to manage through these uncertain times and our focus remains on the safety of our employees and supporting our customers as they also manage through this challenging environment,” commented Frank Leto, President and Chief Executive Officer, continuing, “The economic impacts resulting from the COVID-19 pandemic are ongoing. While the current interest rate environment continues to put pressure on our net interest margin, our fee-based businesses produced consistent results, demonstrating the value of our diversified earnings profile. We built on our strong capital position during the quarter while also maintaining ample liquidity, and our credit metrics remained stable. Our solid foundation leaves us well positioned to face the evolving economic landscape as we close out 2020 and look to 2021 and beyond,” Mr. Leto concluded.

On October 22, 2020, the Board of Directors of the Corporation declared a quarterly dividend of $0.27 per share, payable December 1, 2020 to shareholders of record as of November 2, 2020.

SIGNIFICANT ITEMS OF NOTE

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

  • Net income for the three months ended September 30, 2020 was $13.2 million, or $0.66 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 September 30, 2020 was $35.0 million, a decrease of $2.4 million over the linked quarter. The provision for credit losses on loans and leases (the “Provision”) for the three months ended September 30, 2020 was $3.6 million, a $661 thousand decrease as compared to $4.3 million for the three months ended June 30, 2020. Total noninterest income increased $533 thousand, total noninterest expense increased $1.0 million, and income tax expense decreased $301 thousand for the three months ended September 30, 2020, as compared to the three months ended June 30, 2020.

  • Net interest income for the three months ended September 30, 2020 was $35.0 million, a decrease of $2.4 million over the linked quarter. Tax-equivalent net interest income for the three months ended September 30, 2020 was $35.1 million, a decrease of $2.4 million over the linked quarter. Tax-equivalent net interest income for the third quarter of 2020 was positively impacted by the accretion of purchase accounting fair value marks of $800 thousand, a decrease of $240 thousand as compared to $1.0 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 September 30, 2020 was $34.3 million, a decrease of $2.1 million 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 3.03% for the three months ended September 30, 2020 as compared to 3.22% for the linked quarter. Adjusting for the impact of the accretion of purchase accounting fair value marks, the adjusted tax-equivalent net interest margin was 2.96% for the three months ended September 30, 2020 as compared to 3.13% 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.

    Items contributing to the decrease in tax-equivalent net interest income adjusted for purchase accounting included decreases of $3.6 million and $216 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 $1.5 million and $224 thousand in interest paid on deposits and interest expense on short-term borrowings, respectively, for the three months ended September 30, 2020 as compared to the linked quarter.

    Tax-equivalent interest and fees earned on loans and leases for the three months ended September 30, 2020 decreased $3.9 million as compared to the linked quarter. The tax-equivalent yield on average loans and leases for the three months ended September 30, 2020 was 3.97%, a 19 basis point decrease as compared to the linked quarter. Average loans and leases decreased $238.5 million for the three months ended September 30, 2020 as compared to the linked quarter. The decrease in average loans and leases was primarily the result of the sale of $295.6 million of PPP loans at the end of the second quarter and to a smaller extent early in the 3rd quarter.

    Tax-equivalent interest income on available for sale investment securities for the three months ended September 30, 2020 decreased $216 thousand as compared to the linked quarter. The tax-equivalent yield on average available for sale investment securities was 1.86%, a 30 basis point decrease as compared to the linked quarter. The effect of the decrease in the tax-equivalent yield was partially offset by an increase of $32.5 million in average available for sale investment securities for the three months ended September 30, 2020 as compared to the linked quarter.

    Interest expense on deposits for the three months ended September 30, 2020 decreased $1.5 million over the linked quarter. The rate paid on average interest-bearing deposits for the three months ended September 30, 2020 was 0.41%, a 20 basis point decrease as compared to the linked quarter. Average interest-bearing deposits for the three months ended September 30, 2020 decreased $77.5 million as compared to the linked quarter.

    Interest expense on short-term borrowings for the three months ended September 30, 2020 decreased $224 thousand over the linked quarter. The decrease was primarily due to a $106.9 million decrease in average short-term borrowings and a 57 basis point decrease in the rate paid as compared to the linked quarter.
  • Noninterest income of $21.1 million for the three months ended September 30, 2020 represented a $533 thousand increase over the linked quarter. The increase was primarily due to increases of $2.6 million, $379 thousand, and $339 thousand in fees for wealth management services, insurance commissions, and capital markets revenue, respectively, partially offset by decreases of $2.1 million and $575 thousand in net gain on sale of loans and other operating income, respectively. The increase in fees for wealth management services was primarily related to 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. 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 $35.7 million for the three months ended September 30, 2020 represented a $1.0 million increase over the linked quarter. Increases of $361 thousand, $275 thousand, $270 thousand, and $262 thousand in furniture, fixtures and equipment expenses, salaries and wages, other operating expenses, and advertising expenses, respectively, were partially offset by a decrease of $195 thousand in employee benefits.

  • The Provision of $3.6 million for the three months ended September 30, 2020 decreased $661 thousand as compared to $4.3 million for the three months ended June 30, 2020. The Provisions recorded in the second and third quarters of 2020 were driven by the current and forward-looking adverse economic impacts of the COVID-19 pandemic included in the estimation of expected credit losses on loans and leases as of June 30, 2020 and September 30, 2020, respectively. Net loan and lease charge-offs for the third quarter of 2020 totaled $2.2 million, a decrease of $1.2 million as compared to $3.4 million for the second quarter of 2020.

  • The effective tax rate for the third quarter of 2020 increased to 22.03% as compared to 21.09% for the second quarter of 2020. The increase in effective tax rate was primarily due to a $75 thousand increase in discrete tax expense related to stock-based compensation coupled with higher projected pretax earnings.

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

  • Net income for the three months ended September 30, 2020 was $13.2 million, or $0.66 diluted earnings per share, as compared to $16.4 million, or $0.81 diluted earnings per share, for the three months ended September 30, 2019. Net interest income for the three months ended September 30, 2020 was $35.0 million, a decrease of $2.4 million as compared to the same period in 2019. The Provision for the three months ended September 30, 2020, as calculated under the Current Expected Credit Loss (“CECL”) framework, increased $2.7 million as compared to the same period in 2019, which was calculated in accordance with previously-applicable GAAP. Total noninterest income increased $1.6 million, total noninterest expense increased $484 thousand, and income tax expense decreased $693 thousand for the three months ended September 30, 2020 as compared to the three months ended September 30, 2019.

  • Net interest income for the three months ended September 30, 2020 was $35.0 million, a decrease of $2.4 million as compared to the same period in 2019. Tax-equivalent net interest income for the three months ended September 30, 2020 was $35.1 million, a decrease of $2.4 million as compared to the same period in 2019. Tax-equivalent net interest income for the third quarter of 2020 was positively impacted by the accretion of purchase accounting fair value marks of $800 thousand as compared to $1.6 million for the same period in 2019. Excluding the effects of these purchase accounting fair value marks, the adjusted tax-equivalent net interest income for the three months ended September 30, 2020 was $34.3 million, a decrease of $1.6 million as compared to the same period in 2019. A reconciliation of this and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release.

    The tax-equivalent net interest margin was 3.03% for the three months ended September 30, 2020 as compared to 3.54% for the same period in 2019. Adjusting for the impacts of the accretion of purchase accounting fair value marks, the adjusted tax-equivalent net interest margin was 2.96% and 3.39% for three months ended September 30, 2020 and 2019, respectively. The main drivers for the decrease in the adjusted tax-equivalent net interest margin were the rate and volume changes of interest-bearing assets and liabilities as discussed in the below bullet points. A reconciliation of this and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release.

    Items contributing to the decrease in tax-equivalent net interest income adjusted for purchase accounting included decreases of $8.0 million and $1.2 million in tax-equivalent interest and fees earned on loans and leases and tax-equivalent interest income on available for sale investment securities, respectively, partially offset by decreases of $6.6 million and $929 thousand in interest paid on deposits and interest expense on short-term borrowings, respectively, for the three months ended September 30, 2020 as compared to the same period in 2019.

    Tax-equivalent interest and fees earned on loans and leases for the three months ended September 30, 2020 decreased $8.7 million as compared to the same period in 2019. The tax-equivalent yield on average loans and leases for the three months ended September 30, 2020 was 3.97%, a 116 basis point decrease as compared to the same period in 2019. The effect of the decrease in the tax-equivalent yield was partially offset by an increase of $168.6 million in average loans and leases for the three months ended September 30, 2020 as compared to same period in 2019.

    Tax-equivalent interest income on available for sale investment securities for the three months ended September 30, 2020 decreased $1.2 million as compared to the same period in 2019. The tax-equivalent yield on average available for sale investment securities for the three months ended September 30, 2020 was 1.86%, a 65 basis point decrease as compared to the same period in 2019 coupled with a decrease of $47.7 million in average available for sale investment securities for the three months ended September 30, 2020 as compared to the same period in 2019.

    Interest expense on deposits for the three months ended September 30, 2020 decreased $6.5 million as compared to the same period in 2019. The rate paid on average interest-bearing deposits for the three months ended September 30, 2020 was 0.41%, a 95 basis point decrease as compared to the same period in 2019. The effect of the decrease in the tax-equivalent rate paid was partially offset by an increase of $115.4 million in average interest-bearing deposits for the three months ended September 30, 2020 as compared to the same period in 2019.

    Interest expense on short-term borrowings for the three months ended September 30, 2020 decreased $929 thousand as compared to the same period in 2019. The decrease was primarily due to a $140.1 million decrease in average short-term borrowings for the three months ended September 30, 2020 as compared to the same period in 2019 coupled with a 208 basis point decrease in the rate paid for the three months ended September 30, 2020 as compared to the same period in 2019.
  • Noninterest income of $21.1 million for the three months ended September 30, 2020 represented a $1.6 million increase over the same period in 2019. The increase was primarily due to increases of $1.2 million, $881 thousand, and $347 thousand in capital markets revenue, fees for wealth management services, and net gain on sale of loans, respectively, partially offset by decreases of $219 thousand, $193 thousand, $182 thousand, and $160 thousand in dividends on the Corporation's equity stocks issued by the Federal Home Loan Bank (“FHLB”) and the Federal Reserve Bank, service charges on deposits, loan servicing fees, and insurance commissions, respectively.

  • Noninterest expense of $35.7 million for the three months ended September 30, 2020 represented a $484 thousand increase over the same period in 2019. Increases of $1.0 million and $674 thousand in other operating expenses and professional fees, respectively, were partially offset by decreases of $564 thousand, $399 thousand, and $262 thousand in salaries and wages, Pennsylvania bank shares tax, and employee benefits, respectively. The increase in other operating expenses included a $627 increase in FDIC insurance expense primarily due to a small bank assessment credit of $407 thousand applied in the third quarter of 2019.

  • The Provision of $3.6 million for the three months ended September 30, 2020, as calculated under the CECL framework, increased $2.7 million as compared to the same period in 2019, which was calculated in accordance with previously-applicable GAAP. The Provision recorded in the third quarter of 2020 was driven by the current and forward-looking adverse economic impacts of the COVID-19 pandemic included in the estimation of expected credit losses on loans and leases as of September 30, 2020. Net loan and lease charge-offs for the third quarter of 2020 totaled $2.2 million, an increase of $863 thousand as compared to $1.3 million for the third quarter in 2019.

  • The effective tax rate for the third quarter of 2020 increased to 22.03% as compared to 21.20% for the third quarter of 2019. The increase in effective tax rate was primarily due to a $105 thousand increase in discrete tax expense related to stock-based compensation.

Financial Condition – September 30, 2020 Compared to December 31, 2019

  • Total assets as of September 30, 2020 were $5.05 billion, a decrease of $216.3 million from December 31, 2019. The decrease was primarily due to the $441.2 million decrease in available for sale investment securities as discussed in the bullet point below. Partially offsetting this decrease were increases of $203.5 million and $93.9 million in cash balances and other assets. The increase in cash balances was primarily due to the sale of approximately $292.1 million of PPP loans in the second quarter of 2020 coupled with higher deposit balances resulting from PPP loan funds deposited with the Bank. The increase in other assets was primarily driven by an $88.4 million increase in the fair value of interest rate swaps.

  • Available for sale investment securities as of September 30, 2020 totaled $564.8 million, a decrease of $441.2 million from December 31, 2019. The decrease was primarily due to the maturing of $500.0 million of short-term U.S. Treasury securities in the first quarter of 2020, partially offset by increases of $65.8 million, $9.3 million, and $6.5 million of mortgage-backed securities, corporate bonds, and collateralized loan obligations, respectively.

  • Total portfolio loans and leases of $3.68 billion as of September 30, 2020 decreased $12.6 million, or 0.3%, from December 31, 2019. Decreases of $45.8 million, $45.1 million, $10.7 million, and $10.2 million in residential mortgages 1st liens, home equity lines of credit, residential mortgage 2nd liens and consumer loans, respectively, were partially offset by increases of $45.6 million, $40.6 million and $33.1 million in nonowner-occupied commercial real estate loans, owner-occupied commercial real estate loans and commercial and industrial loans, respectively. In conjunction with the adoption of CECL, the Corporation has revised its portfolio segmentation to align with the methodology applied in determining the allowance for credit losses (“ACL”) for loans and leases under CECL, which is based on federal call report codes which classify loans based on the primary collateral supporting the loan. Portfolio segmentation prior to the adoption of CECL was based on product type or purpose. As such, certain reclassifications were made to conform previous years to the current year's presentation.

    As of September 30, 2020, 552 loans and leases in the amount of $305.2 million, comprising 8.3% of the Bank's portfolio loans and leases, are within a deferral period under the Bank's consumer and commercial loan and lease modification programs, as compared to 1,668 loans and leases in the amount of $767.1 million, comprising 20.6% of the Bank's portfolio loans and leases, as of June 30, 2020.
  • The ACL on loans and leases was $22.6 million as of December 31, 2019. Effective January 1, 2020, the Corporation adopted CECL and recognized an increase in the ACL on loans and leases of approximately $3.2 million, as a cumulative effect of a change in accounting principle, with a corresponding decrease, net of tax, in retained earnings. The ACL on loans and leases was $56.4 million as of September 30, 2020, an increase of $33.8 million as compared to December 31, 2019. The significant increase was driven by the current and forward-looking adverse economic impacts of the COVID-19 pandemic included in the estimation of expected credit losses on loans and leases as of September 30, 2020 as compared to our initial adoption of CECL.

  • Deposits of $4.01 billion as of September 30, 2020 increased $171.3 million from December 31, 2019. Increases of $333.2 million, $93.0 million, and $24.7 million in noninterest bearing deposits, money market accounts, and savings accounts, respectively, were partially offset by decreases of $129.4 million, $100.5 million, and $38.9 million in interest-bearing demand accounts, wholesale non-maturity deposits, and retail time deposits, respectively. The increase in noninterest bearing deposits was primarily due to the Bank's PPP loan customers depositing loan funds into Bank deposit accounts during the second quarter of 2020.

  • Borrowings of $189.1 million as of September 30, 2020, which include short-term borrowings, long-term FHLB advances, subordinated notes and junior subordinated debentures decreased $476.9 million from December 31, 2019, primarily due to decreases of $469.8 million and $7.4 million in short-term borrowings and long-term FHLB advances, respectively. The decrease in short-term borrowings was primarily due to the maturing of approximately $432.4 million of short-term borrowings in the first quarter of 2020, 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, 2019. Additionally, the increase in deposits reduced the need to obtain wholesale funding such as FHLB advances at September 30, 2020 as compared to December 31, 2019.

  • Wealth assets totaled $17.24 billion as of September 30, 2020, an increase of $696.2 million from December 31, 2019. As of September 30, 2020, wealth assets consisted of $10.69 billion of wealth assets where fees are set at fixed amounts, an increase of $1.12 billion from December 31, 2019, and $6.56 billion of wealth assets where fees are predominantly determined based on the market value of the assets held in their accounts, a decrease of $419.1 million from December 31, 2019.

  • The capital ratios for the Bank and the Corporation, as of September 30, 2020, as shown in the attached tables, indicate regulatory capital levels in excess of the regulatory minimums and the levels necessary for the Bank to be considered “well capitalized.” In September 2020, the U.S. banking agencies issued a final rule that provides banking organizations with an alternative option to delay for two years an estimate of CECL’s effect on regulatory capital, relative to the incurred loss methodology’s effect on regulatory capital, followed by a three-year transition period. This final rule is consistent with the interim final rule issued by the U.S. banking agencies in March 2020. The current and prior quarter ratios reflect the Corporation's election of the five-year transition provision.

EARNINGS CONFERENCE CALL

The Corporation will hold a third quarter 2020 earnings conference call at 8:30 a.m. Eastern Time on Friday, October 23, 2020. Interested parties may participate by calling 1-888-317-6016. A taped replay of the conference call will be available one hour after the conclusion of the call and will remain available through 9:00 a.m. Eastern Time on Friday, November 23, 2020. This recording may be obtained by calling 1-877-344-7529, referring to conference number 10148408.

The Corporation will simultaneously broadcast the earnings conference call live over the Internet through a webcast on the investor relations portion of the Corporation’s website. To access the call via the Internet, please visit the website at http://services.choruscall.com/links/bmtc201023.html. An online archive of the webcast will be available within one hour of the conclusion of the earnings conference call. Within 24 hours after the conclusion of the earnings conference call, an online transcript will be available at the following website:
https://platform.mi.spglobal.com/web/client?auth=inherit&overridec ....

The Corporation’s decision to hold an earnings conference call for the third quarter of 2020 is not indicative of the Corporation’s future plans with respect to earnings conference calls, and decisions regarding whether to continue holding earnings conference calls will be made at a future date.

FORWARD LOOKING STATEMENTS AND SAFE HARBOR

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

Such forward-looking statements involve known and unknown risks and uncertainties. A number of factors, many of which are beyond the Corporation’s control, could cause our actual results, events or developments, or industry results, to be materially different from any future results, events or developments expressed, implied or anticipated by such forward-looking statements, and so our business and financial condition and results of operations could be materially and adversely affected. The COVID-19 pandemic (the “Pandemic”) is adversely affecting us, our clients, counterparties, employees, and third-party service providers, and the ultimate extent of the impacts on our business, financial position, results of operations, liquidity, and prospects is uncertain. Continued deterioration in general business and economic conditions, including further increases in unemployment rates, or turbulence in domestic or global financial markets could adversely affect our revenues and the values of our assets and liabilities, reduce the availability of funding, lead to a tightening of credit, and further increase stock price volatility. In addition, changes to statutes, regulations, or regulatory policies or practices as a result of, or in response to the Pandemic, could affect us in substantial and unpredictable ways. Other factors include, among others, our need for capital, our ability to control operating costs and expenses, and to manage loan and lease delinquency rates; the credit risks of lending activities and overall quality of the composition of our loan, lease and securities portfolio; the impact of economic conditions, consumer and business spending habits, and real estate market conditions on our business and in our market area; changes in the levels of general interest rates, deposit interest rates, or net interest margin and funding sources; changes in banking regulations and policies and the possibility that any banking agency approvals we might require for certain activities will not be obtained in a timely manner or at all or will be conditioned in a manner that would impair our ability to implement our business plans; changes in accounting policies and practices or accounting standards, including ASU 2016-13 (Topic 326), “Measurement of Credit Losses on Financial Instruments,” commonly referenced as the Current Expected Credit Loss model, which has changed how we estimate credit losses and may result in further increases in the required level of our allowance for credit losses; unanticipated regulatory or legal proceedings, outcomes of litigation or other contingencies; cybersecurity events; the inability of key third-party providers to perform their obligations to us; our ability to attract and retain key personnel; competition in our marketplace; war or terrorist activities; material differences in the actual financial results, cost savings and revenue enhancements associated with our acquisitions; uncertainty regarding the future of LIBOR; the impact of public health issues and pandemics, and their effects on the economic and business environments in which we operate; the effect of the Pandemic, including on our credit quality and business operations, as well as its impact on general economic and financial market conditions; and other factors as described in our securities filings with the U.S. Securities and Exchange Commission (“SEC”). All forward-looking statements and information set forth herein are based on Corporation management’s current beliefs and assumptions as of the date hereof and speak only as of the date they are made. The Corporation does not undertake to update forward-looking statements.

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

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


Bryn Mawr Bank Corporation                          
Summary Financial Information (unaudited)                          
(dollars in thousands, except per share data)                          
  As of or For the Three Months Ended   For the Nine Months Ended
  September 30,
2020
  June 30,
2020
  March 31,
2020
  December 31,
2019
  September 30,
2019
  September 30,
2020
  September 30,
2019
Consolidated Balance Sheet (selected items)                          
Interest-bearing deposits with banks $ 241,763     $ 448,113     $ 69,239     $ 42,328     $ 86,158          
Investment securities   584,529       550,974       537,592       1,027,182       625,452          
Loans held for sale   4,574       4,116       2,785       4,249       5,767          
Portfolio loans and leases   3,676,684       3,722,165       3,767,166       3,689,313       3,540,747          
Allowance for credit losses ("ACL") on loans and leases   (56,428 )     (54,974 )     (54,070 )     (22,602 )     (20,777 )        
Goodwill and other intangible assets   200,445       201,315       202,225       203,143       204,096          
Total assets   5,046,939       5,271,311       4,923,033       5,263,259       4,828,641          
Deposits - interest-bearing   2,783,188       3,026,152       2,850,986       2,944,072       2,794,079          
Deposits - non-interest-bearing   1,230,391       1,217,496       927,922       898,173       904,409          
Short-term borrowings   23,456       28,891       162,045       493,219       203,471          
Long-term FHLB advances   44,872       44,837       47,303       52,269       44,735          
Subordinated notes   98,839       98,794       98,750       98,705       98,660          
Jr. subordinated debentures   21,889       21,843       21,798       21,753       21,709          
Total liabilities   4,434,322       4,667,637       4,329,854       4,651,032       4,227,706          
Total shareholders' equity   612,617       603,674       593,179       612,227       600,935          
                           
Average Balance Sheet (selected items)                          
Interest-bearing deposits with banks $ 336,225     $ 195,966     $ 50,330     $ 66,060     $ 48,597     $ 194,652     $ 39,785  
Investment securities   574,094       542,321       542,876       593,289       622,336       553,174       593,449  
Loans held for sale   4,393       3,805       2,319       4,160       4,375       3,509       2,992  
Portfolio loans and leases   3,697,102       3,936,227       3,736,067       3,594,449       3,528,548       3,789,460       3,508,837  
Total interest-earning assets   4,611,814       4,678,319       4,331,592       4,257,958       4,203,856       4,540,795       4,145,063  
Goodwill and intangible assets   200,931       201,823       202,760       203,663       204,637       201,835       205,641  
Total assets   5,157,588       5,226,074       4,844,918       4,775,407       4,760,074       5,076,490       4,653,064  
Deposits - interest-bearing   2,891,652       2,969,113       2,853,712       2,799,050       2,776,226       2,904,777       2,748,798  
Short-term borrowings   29,913       136,816       140,585       121,612       169,985       102,173       132,100  
Long-term FHLB advances   44,849       46,161       47,335       53,443       45,698       46,110       51,125  
Subordinated notes   98,815       98,770       98,725       98,681       98,634       98,770       98,588  
Jr. subordinated debentures   21,859       21,814       21,768       21,726       21,680       21,814       21,638  
Total interest-bearing liabilities   3,087,088       3,272,674       3,162,125       3,094,512       3,112,223       3,173,644       3,052,249  
Total liabilities   4,548,395       4,625,511       4,229,908       4,168,899       4,164,763       4,468,231       4,070,025  
Total shareholders' equity   609,193       600,563       615,010       606,508       595,311       608,259       583,039  
                           
Income Statement                          
Net interest income $ 35,032     $ 37,385     $ 36,333     $ 35,985     $ 37,398     $ 108,750     $ 111,656  
Provision for loan and lease losses   3,641       4,302       32,335       2,225       919       40,278       6,282  
Noninterest income   21,099       20,566       18,300       23,255       19,455       59,965       58,929  
Noninterest expense   35,657       34,636       36,418       36,430       35,173       106,711       110,085  
Income tax expense (benefit)   3,709       4,010       (2,957 )     4,202       4,402       4,762       11,405  
Net income (loss)   13,124       15,003       (11,163 )     16,383       16,359       16,964       42,813  
Net loss attributable to noncontrolling interest   (40 )     (32 )     -       (1 )     (1 )     (72 )     (9 )
Net income (loss) attributable to Bryn Mawr Bank Corporation   13,164       15,035       (11,163 )     16,384       16,360       17,036       42,822  
Basic earnings per share   0.66       0.75       (0.56 )     0.81       0.81       0.85       2.13  
Diluted earnings per share   0.66       0.75       (0.56 )     0.81       0.81       0.85       2.12  
Net income (loss) (core) (1)   13,164       15,399       (11,163 )     16,384       16,360       17,400       46,375  
Basic earnings per share (core) (1)   0.66       0.77       (0.56 )     0.81       0.81       0.87       2.30  
Diluted earnings per share (core) (1)   0.66       0.77       (0.56 )     0.81       0.81       0.87       2.29  
Dividends paid or accrued per share   0.27       0.26       0.26       0.26       0.26       0.79       0.76  
Profitability Indicators                          
Return on average assets   1.02 %     1.16 %     -0.93 %     1.36 %     1.36 %     0.45 %     1.23 %
Return on average equity   8.60 %     10.07 %     -7.30 %     10.72 %     10.90 %     3.74 %     9.82 %
Return on tangible equity(1)   13.47 %     15.86 %     -10.17 %     16.85 %     17.35 %     6.29 %     15.94 %
Return on tangible equity (core)(1)   13.47 %     16.23 %     -10.17 %     16.85 %     17.35 %     6.41 %     17.19 %
Return on average assets (core)(1)   1.02 %     1.19 %     -0.93 %     1.36 %     1.36 %     0.46 %     1.33 %
Return on average equity (core)(1)   8.60 %     10.31 %     -7.30 %     10.72 %     10.90 %     3.82 %     10.63 %
Tax-equivalent net interest margin   3.03 %     3.22 %     3.38 %     3.36 %     3.54 %     3.21 %     3.61 %
Efficiency ratio(1)   61.97 %     57.25 %     64.98 %     59.89 %     60.19 %     61.33 %     60.23 %
Share Data                          
Closing share price $ 24.87     $ 27.66     $ 28.38     $ 41.24     $ 36.51          
Book value per common share $ 30.70     $ 30.29     $ 29.78     $ 30.42     $ 29.86          
Tangible book value per common share(1) $ 20.69     $ 20.23     $ 19.66     $ 20.36     $ 19.75          
Price / book value   81.01 %     91.32 %     95.30 %     135.57 %     122.27 %        
Price / tangible book value(1)   120.20 %     136.73 %     144.35 %     202.55 %     184.86 %        
Weighted average diluted shares outstanding   20,021,617       20,008,219       20,053,159       20,213,008       20,208,630       20,062,108       20,236,331  
Shares outstanding, end of period   19,958,186       19,927,893       19,921,524       20,126,296       20,124,193          
Wealth Management Information:                          
Wealth assets under mgmt, administration, supervision and brokerage (2) $ 17,244,307     $ 17,012,903     $ 15,593,732     $ 16,548,060     $ 15,609,786          
Fees for wealth management services $ 11,707     $ 9,069     $ 11,168     $ 11,672     $ 10,826          
Capital Ratios(3)                          
Bryn Mawr Trust Company ("BMTC")                          
Tier I capital to risk weighted assets ("RWA")   12.02 %     11.68 %     11.10 %     11.47 %     12.17 %        
Total capital to RWA   13.27 %     12.93 %     12.33 %     12.09 %     12.75 %        
Tier I leverage ratio   9.16 %     8.75 %     9.12 %     9.37 %     9.75 %        
Tangible equity ratio (1)   9.36 %     8.67 %     8.98 %     8.58 %     9.75 %        
Common equity Tier I capital to RWA   12.02 %     11.68 %     11.10 %     11.47 %     12.17 %        
                           
Bryn Mawr Bank Corporation ("BMBC")                          
Tier I capital to RWA   11.48 %     11.27 %     10.80 %     11.42 %     11.33 %        
Total capital to RWA   15.19 %     15.14 %     14.62 %     14.69 %     14.61 %        
Tier I leverage ratio   8.75 %     8.44 %     8.88 %     9.33 %     9.07 %        
Tangible equity ratio (1)   8.52 %     7.95 %     8.30 %     8.10 %     8.60 %        
Common equity Tier I capital to RWA   10.92 %     10.71 %     10.25 %     10.86 %     10.75 %        
                           
Asset Quality Indicators                          
Net loan and lease charge-offs ("NCO"s) $ 2,187     $ 3,398     $ 4,073     $ 400     $ 1,324     $ 9,658     $ 4,931  
                           
Loans and leases risk-rated Special Mention $ 48,267     $ 55,171     $ 14,833     $ 19,922     $ 40,494          
Total classified loans and leases   175,501       154,687       60,972       66,901       36,192          
Total criticized loans and leases $ 223,768     $ 209,858     $ 75,805     $ 86,823     $ 76,686          
                           
Nonperforming loans and leases ("NPL"s) $ 8,597     $ 8,418     $ 7,557     $ 10,648     $ 14,119          
Other real estate owned ("OREO")   -       -       -       -       72          
Total nonperforming assets ("NPA"s) $ 8,597     $ 8,418     $ 7,557     $ 10,648     $ 14,191          
                           
Nonperforming loans and leases 30 or more days past due $ 4,153     $ 3,223     $ 3,380     $ 6,314     $ 4,940          
Performing loans and leases 30 to 89 days past due   9,351       10,022       19,930       7,196       5,273          
Performing loans and leases 90 or more days past due   -       -       -       -       -          
Total delinquent loans and leases $ 13,504     $ 13,245     $ 23,310     $ 13,510     $ 10,213          
                           
Delinquent loans and leases to total loans and leases   0.37 %     0.36 %     0.62 %     0.37 %     0.29 %        
Delinquent performing loans and leases to total loans and leases   0.25 %     0.27 %     0.53 %     0.19 %     0.15 %        
NCOs / average loans and leases (annualized)   0.24 %     0.35 %     0.44 %     0.04 %     0.15 %     0.34 %     0.19 %
NPLs / total portfolio loans and leases   0.23 %     0.23 %     0.20 %     0.29 %     0.40 %        
NPAs / total loans and leases and OREO   0.23 %     0.23 %     0.20 %     0.29 %     0.40 %        
NPAs / total assets   0.17 %     0.16 %     0.15 %     0.20 %     0.29 %        
ACL on loans and leases / NPLs   656.37 %     653.05 %     715.50 %     212.27 %     147.16 %        
ACL / classified loans and leases   32.15 %     35.54 %     88.68 %     33.78 %     57.41 %        
ACL / criticized loans and leases   25.22 %     26.20 %     71.33 %     26.03 %     27.09 %        
ACL on loans and leases / portfolio loans   1.53 %     1.48 %     1.44 %     0.61 %     0.59 %        
ACL on loans and leases for originated loans and leases / Originated loans and leases (1)   1.56 %     1.51 %     1.47 %     0.68 %     0.66 %        
(Total ACL on loans and leases + Loan mark) / Total Gross portfolio loans and leases (1)   1.73 %     1.69 %     1.68 %     0.91 %     0.92 %        
                           
Troubled debt restructurings ("TDR"s) included in NPLs $ 1,393     $ 1,792     $ 3,248     $ 3,018     $ 5,755          
TDRs in compliance with modified terms   8,590       10,013       4,852       5,071       5,069          
Total TDRs $ 9,983     $ 11,805     $ 8,100     $ 8,089     $ 10,824          
                           
(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. The March 31, 2020, June 30, 2020, and September 30, 2020 ratios reflect the Corporation’s planned 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)                    
                     
  September 30,
2020
  June 30,
2020
  March 31,
2020
  December 31,
2019
  September 30,
2019
 
Assets                    
Cash and due from banks $ 15,670     $ 16,408     $ 17,803     $ 11,603     $ 8,582    
Interest-bearing deposits with banks   241,763       448,113       69,239       42,328       86,158    
Cash and cash equivalents   257,433       464,521       87,042       53,931       94,740    
Investment securities, available for sale   564,774       530,581       516,466       1,005,984       604,181    
Investment securities, held to maturity   11,725       12,592       13,369       12,577       12,947    
Investment securities, trading   8,030       7,801       7,757       8,621       8,324    
Loans held for sale   4,574       4,116       2,785       4,249       5,767    
Portfolio loans and leases, originated   3,396,068       3,422,890       3,424,601       3,320,816       3,137,769    
Portfolio loans and leases, acquired   280,616       299,275       342,565       368,497       402,978    
Total portfolio loans and leases   3,676,684       3,722,165       3,767,166       3,689,313       3,540,747    
Less: Allowance for credit losses on originated loan and leases   (52,968 )     (51,659 )     (50,365 )     (22,526 )     (20,675 )  
Less: Allowance for credit losses on acquired loan and leases   (3,460 )     (3,315 )     (3,705 )     (76 )     (102 )  
Total allowance for credit losses on loans and leases   (56,428 )     (54,974 )     (54,070 )     (22,602 )     (20,777 )  
Net portfolio loans and leases   3,620,256       3,667,191       3,713,096       3,666,711       3,519,970    
Premises and equipment   60,369       61,778       63,144       64,965       66,439    
Operating lease right-of-use assets   38,536       39,348       40,157       40,961       42,200    
Accrued interest receivable   16,609       15,577       12,017       12,482       12,746    
Mortgage servicing rights   2,881       3,440       4,115       4,450       4,580    
Bank owned life insurance   60,072       59,728       59,399       59,079       58,749    
Federal Home Loan Bank ("FHLB") stock   4,506       4,506       11,928       23,744       16,148    
Goodwill   184,012       184,012       184,012       184,012       184,012    
Intangible assets   16,433       17,303       18,213       19,131       20,084    
Other investments   17,129       17,055       16,786       16,683       16,683    
Other assets   179,600       181,762       172,747       85,679       161,071    
Total assets $ 5,046,939     $ 5,271,311     $ 4,923,033     $ 5,263,259     $ 4,828,641    
                     
Liabilities                    
Deposits                    
Noninterest-bearing $ 1,230,391     $ 1,217,496     $ 927,922     $ 898,173     $ 904,409    
Interest-bearing   2,783,188       3,026,152       2,850,986       2,944,072       2,794,079    
Total deposits   4,013,579       4,243,648       3,778,908       3,842,245       3,698,488    
Short-term borrowings   23,456       28,891       162,045       493,219       203,471    
Long-term FHLB advances   44,872       44,837       47,303       52,269       44,735    
Subordinated notes   98,839       98,794       98,750       98,705       98,660    
Jr. subordinated debentures   21,889       21,843       21,798       21,753       21,709    
Operating lease liabilities   42,895       43,693       44,482       45,258       46,506    
Accrued interest payable   7,984       7,907       7,230       6,248       9,015    
Other liabilities   180,808       178,024       169,338       91,335       105,122    
Total liabilities   4,434,322       4,667,637       4,329,854       4,651,032       4,227,706    
                     
Shareholders' equity                    
Common stock   24,710       24,662       24,655       24,650       24,646    
Paid-in capital in excess of par value   380,770       380,167       379,495       378,606       377,806    
Less: common stock held in treasury, at cost   (89,100 )     (88,612 )     (88,540 )     (81,174 )     (81,089 )  
Accumulated other comprehensive income, net of tax   10,139       9,019       8,869       2,187       2,698    
Retained earnings   286,865       279,165       269,395       288,653       277,568    
Total Bryn Mawr Bank Corporation shareholders' equity   613,384       604,401       593,874       612,922       601,629    
Noncontrolling interest   (767 )     (727 )     (695 )     (695 )     (694 )  
Total shareholders' equity   612,617       603,674       593,179       612,227       600,935    
Total liabilities and shareholders' equity $ 5,046,939     $ 5,271,311     $ 4,923,033     $ 5,263,259     $ 4,828,641    



Bryn Mawr Bank Corporation                  
Supplemental Balance Sheet Information (unaudited)                  
(dollars in thousands)                  
  Portfolio Loans and Leases(1) as of
  September 30,
2020
  June 30,
2020
  March 31,
2020
  December 31,
2019
  September 30,
2019
Commercial real estate - nonowner-occupied $ 1,382,757     $ 1,375,904     $ 1,354,416     $ 1,337,167     $ 1,238,881  
Commercial real estate - owner-occupied   568,219       542,688       530,667       527,607       499,202  
Home equity lines of credit   179,125       194,767       209,278       224,262       227,682  
Residential mortgage - 1st liens   660,923       695,270       710,495       706,690       702,588  
Residential mortgage - junior liens   26,150       33,644       35,583       36,843       37,240  
Construction   186,415       212,374       221,116       202,198       195,161  
Total real estate loans   3,003,589       3,054,647       3,061,555       3,034,767       2,900,754  
Commercial & Industrial   465,315       457,529       491,298       432,227       426,084  
Consumer   47,043       43,762       45,951       57,241       50,760  
Leases   160,737       166,227       168,362       165,078       163,149  
Total non-real estate loans and leases   673,095       667,518       705,611       654,546       639,993  
Total portfolio loans and leases $ 3,676,684     $ 3,722,165     $ 3,767,166     $ 3,689,313     $ 3,540,747  
                   
                   
  Nonperforming Loans and Leases(1) as of
  September 30,
2020
  June 30,
2020
  March 31,
2020
  December 31,
2019
  September 30,
2019
Commercial real estate - nonowner-occupied $ 849     $ 245     $ 181     $ 199     $ 3,055  
Commercial real estate - owner-occupied   3,597       4,046       2,543       4,159       4,535  
Home equity lines of credit   890       915       758       636       693  
Residential mortgage - 1st liens   862       912       1,080       2,447       2,693  
Residential mortgage - junior liens   50       72       79       83       84  
Total nonperforming real estate loans   6,248       6,190       4,641       7,524       11,060  
Commercial & Industrial   1,784       1,973       2,692       2,180       1,991  
Consumer   31       36       52       61       75  
Leases   534       219       172       883       993  
Total nonperforming non-real estate loans and leases   2,349       2,228       2,916       3,124       3,059  
Total nonperforming portfolio loans and leases $ 8,597     $ 8,418     $ 7,557     $ 10,648     $ 14,119  
                   
                   
  Net Loan and Lease Charge-Offs (Recoveries)(1) for the Three Months Ended
  September 30,
2020
  June 30,
2020
  March 31,
2020
  December 31,
2019
  September 30,
2019
Commercial real estate - nonowner-occupied $ (2 )   $ (4 )   $ (2 )   $ (1,067 )   $ (7 )
Commercial real estate - owner-occupied   494       1,234       -       190       680  
Home equity lines of credit   -       (4 )     114       33       (22 )
Residential mortgage - 1st liens   (13 )     420       727       378       (7 )
Residential mortgage - junior liens   -       -       -       -       -  
Construction   (1 )     (1 )     (1 )     (1 )     (1 )
Total net charge-offs of real estate loans   478       1,645       838       (467 )     643  
Commercial & Industrial   1,522       499       612       57       (15 )
Consumer   134       238       261       227       187  
Leases   53       1,016       2,362       583       509  
Total net charge-offs of non-real estate loans and leases   1,709       1,753       3,235       867       681  
Total net charge-offs $ 2,187     $ 3,398     $ 4,073     $ 400     $ 1,324  
                   
(1) In conjunction with the adoption of CECL, the Corporation has revised its portfolio segmentation to align with the methodology applied in determining the ACL for loans and leases under CECL, which is based on federal call report codes, or collateral. Portfolio segmentation prior to the adoption of CECL was based on product type or purpose. As such, certain reclassifications were made to conform previous years to the current year's presentation.



Bryn Mawr Bank Corporation                  
Supplemental Balance Sheet Information (unaudited)                  
(dollars in thousands)                  
  Investment Securities Available for Sale, at Fair Value
  September 30,
2020
  June 30,
2020
  March 31,
2020
  December 31,
2019
  September 30,
2019
U.S. Treasury securities $ 100   $ 100   $ 101   $ 500,101   $ 101
Obligations of the U.S. Government and agencies   90,928     114,149     106,679     102,020     172,753
State & political subdivisions - tax-free   3,178     4,583     4,562     5,379     6,327
Mortgage-backed securities   431,822     377,204     374,775     366,002     388,891
Collateralized mortgage obligations   22,253     25,873     29,699     31,832     35,459
Collateralized loan obligations   6,500     -     -     -     -
Corporate bonds   9,343     8,022     -     -     -
Other debt securities   650     650     650     650     650
Total investment securities available for sale, at fair value $ 564,774   $ 530,581   $ 516,466   $ 1,005,984   $ 604,181
                   
                   
  Unrealized Gain (Loss) on Investment Securities Available for Sale
  September 30,
2020
  June 30,
2020
  March 31,
2020
  December 31,
2019
  September 30,
2019
U.S. Treasury securities $ -   $ -   $ 1   $ 35   $ 1
Obligations of the U.S. Government and agencies   995     1,103     1,036     (159)     188
State & political subdivisions - tax-free   27     30     10     13     8
Mortgage-backed securities   12,901     11,683     11,554     5,025     4,605
Collateralized mortgage obligations   662     702     778     36     180
Corporate bonds   343     22     -     -     -
Total unrealized gains on investment securities available for sale $ 14,928   $ 13,540   $ 13,379   $ 4,950   $ 4,982
                   
                   
  Deposits
  September 30,
2020
  June 30,
2020
  March 31,
2020
  December 31,
2019
  September 30,
2019
Interest-bearing deposits:                  
Interest-bearing demand $ 815,561   $ 910,441   $ 750,127   $ 944,915   $ 778,809
Money market   1,199,429     1,239,523     1,133,952     1,106,478     983,170
Savings   245,167     249,636     247,799     220,450     248,539
Retail time deposits   366,245     400,186     406,828     405,123     467,346
Wholesale non-maturity deposits   77,356     146,463     198,888     177,865     274,121
Wholesale time deposits   79,430     79,903     113,392     89,241     42,094
Total interest-bearing deposits   2,783,188     3,026,152     2,850,986     2,944,072     2,794,079
Noninterest-bearing deposits   1,230,391     1,217,496     927,922     898,173     904,409
Total deposits $ 4,013,579   $ 4,243,648   $ 3,778,908   $ 3,842,245   $ 3,698,488
                   



Bryn Mawr Bank Corporation                          
Detailed Income Statements (unaudited)                          
(dollars in thousands, except per share data)                          
  For the Three Months Ended   For the Nine Months Ended
  September 30,
2020
  June 30,
2020
  March 31,
2020
  December 31,
2019
  September 30,
2019
  September 30,
2020
  September 30,
2019
Interest income:                          
Interest and fees on loans and leases $ 36,799     $ 40,690     $ 42,795     $ 43,220     $ 45,527     $ 120,284     $ 135,147  
Interest on cash and cash equivalents   85       37       111       195       143       233       348  
Interest on investment securities   2,658       2,894       3,201       3,545       3,903       8,753       10,934  
Total interest income   39,542       43,621       46,107       46,960       49,573       129,270       146,429  
Interest expense:                          
Interest on deposits   2,967       4,476       7,637       8,674       9,510       15,080       27,262  
Interest on short-term borrowings   8       232       453       555       937       693       2,237  
Interest on FHLB advances   234       155       244       279       243       633       790  
Interest on jr. subordinated debentures   207       229       295       323       340       731       1,050  
Interest on subordinated notes   1,094       1,144       1,145       1,144       1,145       3,383       3,434  
Total interest expense   4,510       6,236       9,774       10,975       12,175       20,520       34,773  
Net interest income   35,032       37,385       36,333       35,985       37,398       108,750       111,656  
Provision for credit losses ("PCL") on loans and leases   3,641       4,302       32,335       2,225       919       40,278       6,282  
Net interest income after PCL on loans and leases   31,391       33,083       3,998       33,760       36,479       68,472       105,374  
Noninterest income:                          
Fees for wealth management services   11,707       9,069       11,168       11,672       10,826       31,944       32,728  
Insurance commissions   1,682       1,303       1,533       1,666       1,842       4,518       5,211  
Capital markets revenue   3,314       2,975       2,361       5,455       2,113       8,650       5,821  
Service charges on deposits   663       603       846       858       856       2,112       2,516  
Loan servicing and other fees   373       452       461       489       555       1,286       1,717  
Net gain on sale of loans   1,021       3,134       782       597       674       4,937       1,745  
Net gain (loss) on sale of other real estate owned   -       -       148       (48 )     (12 )     148       (36 )
Dividends on FHLB and FRB stocks   127       243       444       432       346       814       1,073  
Other operating income   2,212       2,787       557       2,134       2,255       5,556       8,154  
Total noninterest income   21,099       20,566       18,300       23,255       19,455       59,965       58,929  
Noninterest expense:                          
Salaries and wages   17,201       16,926       16,989       18,667       17,765       51,116       55,704  
Employee benefits   3,026       3,221       3,500       2,685       3,288       9,747       10,771  
Occupancy and bank premises   3,055       3,033       3,015       3,206       3,008       9,103       9,385  
Furniture, fixtures and equipment   2,481       2,120       2,431       2,401       2,335       7,032       7,292  
Advertising   458       196       401       599       587       1,055       1,506  
Amortization of intangible assets   870       910       918       953       954       2,698       2,848  
Professional fees   1,718       1,575       1,368       1,754       1,044       4,661       3,680  
Pennsylvania bank shares tax   115       116       116       42       514       347       1,436  
Data processing   1,403       1,479       1,394       1,517       1,377       4,276       4,000  
Other operating expenses   5,330       5,060       6,286       4,606       4,301       16,676       13,463  
Total noninterest expense   35,657       34,636       36,418       36,430       35,173       106,711       110,085  
Income (loss) before income taxes   16,833       19,013       (14,120 )     20,585       20,761       21,726       54,218  
Income tax expense (benefit)   3,709       4,010       (2,957 )     4,202       4,402       4,762       11,405  
Net income (loss) $ 13,124     $ 15,003     $ (11,163 )   $ 16,383     $ 16,359     $ 16,964     $ 42,813  
Net (loss) attributable to noncontrolling interest   (40 )     (32 )     -       (1 )     (1 )     (72 )     (9 )
Net income (loss) attributable to Bryn Mawr Bank Corporation $ 13,164     $ 15,035     $ (11,163 )   $ 16,384     $ 16,360     $ 17,036     $ 42,822  
                           
Per share data:                          
Weighted average shares outstanding   19,945,634       19,926,737       20,053,159       20,124,553       20,132,117       19,975,069       20,148,289  
Dilutive common shares   75,983       81,482       -       88,455       76,513       87,039       88,042  
Weighted average diluted shares   20,021,617       20,008,219       20,053,159       20,213,008       20,208,630       20,062,108       20,236,331  
Basic earnings per common share $ 0.66     $ 0.75     $ (0.56 )   $ 0.81     $ 0.81     $ 0.85     $ 2.13  
Diluted earnings per common share $ 0.66     $ 0.75     $ (0.56 )   $ 0.81     $ 0.81     $ 0.85     $ 2.12  
Dividends paid or accrued per common share $ 0.27     $ 0.26     $ 0.26     $ 0.26     $ 0.26     $ 0.79     $ 0.76  
Effective tax rate   22.03 %     21.09 %     20.94 %     20.41 %     21.20 %     21.92 %     21.04 %



Bryn Mawr Bank Corporation                                          
Tax-Equivalent Net Interest Margin (unaudited)                                        
(dollars in thousands)                                              
    For the Three Months Ended   For the Nine Months Ended
    September 30,
2020
June 30,
2020
March 31,
2020
December 31,
2019
September 30,
2019
  September 30,
2020
September 30,
2019
    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   $ 336,225   $ 85   0.10 % $ 195,966   $ 37   0.08 % $ 50,330   $ 111   0.89 % $ 66,060   $ 195   1.17 % $ 48,597   $ 143   1.17 %   $ 194,652   $ 233   0.16 % $ 39,785   $ 348   1.17 %
Investment securities - available for sale:                                              
Taxable     550,199     2,562   1.85 %   516,823     2,775   2.16 %   516,244     3,065   2.39 %   566,359     3,334   2.34 %   594,975     3,765   2.51 %     527,837     8,402   2.13 %   566,742     10,528   2.48 %
Tax-exempt     3,690     23   2.48 %   4,572     26   2.29 %   4,909     28   2.29 %   5,844     33   2.24 %   6,594     36   2.17 %     4,388     77   2.34 %   7,961     134   2.25 %
Total investment securities - available for sale     553,889     2,585   1.86 %   521,395     2,801   2.16 %   521,153     3,093   2.39 %   572,203     3,367   2.33 %   601,569     3,801   2.51 %     532,225     8,479   2.13 %   574,703     10,662   2.48 %
                                               
Investment securities - held to maturity     12,248     57   1.85 %   13,126     73   2.24 %   13,195     87   2.65 %   12,756     84   2.61 %   12,360     80   2.57 %     12,854     217   2.26 %   10,540     218   2.77 %
Investment securities - trading     7,957     21   1.05 %   7,800     24   1.24 %   8,528     25   1.18 %   8,330     99   4.72 %   8,407     27   1.27 %     8,095     70   1.16 %   8,206     73   1.19 %
                                               
Loans and leases *     3,701,495     36,901   3.97 %   3,940,032     40,779   4.16 %   3,738,386     42,898   4.62 %   3,598,609     43,326   4.78 %   3,532,923     45,642   5.13 %     3,792,969     120,578   4.25 %   3,511,829     135,503   5.16 %
                                               
Total interest-earning assets     4,611,814     39,649   3.42 %   4,678,319     43,714   3.76 %   4,331,592     46,214   4.29 %   4,257,958     47,071   4.39 %   4,203,856     49,693   4.69 %     4,540,795     129,577   3.81 %   4,145,063     146,804   4.74 %
                                               
Cash and due from banks     16,557         16,263         12,479         9,829         12,890           15,145         13,671      
Less: allowance for loan and lease losses     (55,285 )       (54,113 )       (25,786 )       (21,124 )       (21,438 )         (45,099 )       (20,729 )    
Other assets     584,502         585,605         526,633         528,744         564,766           565,649         515,059      
                                               
Total assets   $ 5,157,588       $ 5,226,074       $ 4,844,918       $ 4,775,407       $ 4,760,074         $ 5,076,490       $ 4,653,064      
                                               
Liabilities:                                              
                                               
Interest-bearing deposits:                                              
Savings, NOW and market rate deposits   $ 2,282,591   $ 1,042   0.18 % $ 2,313,150   $ 2,341   0.41 % $ 2,197,279   $ 4,981   0.91 % $ 2,149,623   $ 5,659   1.04 % $ 1,996,181   $ 5,445   1.08 %   $ 2,264,407   $ 8,364   0.49 % $ 1,908,405   $ 14,249   1.00 %
Wholesale deposits     223,527     465   0.83 %   245,052     486   0.80 %   253,322     977   1.55 %   214,229     1,024   1.90 %   299,309     1,729   2.29 %     240,571     1,928   1.07 %   329,103     5,884   2.39 %
Retail time deposits     385,534     1,460   1.51 %   410,911     1,649   1.61 %   403,111     1,679   1.68 %   435,198     1,991   1.82 %   480,736     2,336   1.93 %     399,799     4,788   1.60 %   511,290     7,129   1.86 %
Total interest-bearing deposits     2,891,652     2,967   0.41 %   2,969,113     4,476   0.61 %   2,853,712     7,637   1.08 %   2,799,050     8,674   1.23 %   2,776,226     9,510   1.36 %     2,904,777     15,080   0.69 %   2,748,798     27,262   1.33 %
                                               
Borrowings:                                              
Short-term borrowings     29,913     8   0.11 %   136,816     232   0.68 %   140,585     453   1.30 %   121,612     555   1.81 %   169,985     937   2.19 %     102,173     693   0.91 %   132,100     2,237   2.26 %
Long-term FHLB advances     44,849     234   2.08 %   46,161     155   1.35 %   47,335     244   2.07 %   53,443     279   2.07 %   45,698     243   2.11 %     46,110     633   1.83 %   51,125     790   2.07 %
Subordinated notes     98,815     1,094   4.40 %   98,770     1,144   4.66 %   98,725     1,145   4.66 %   98,681     1,144   4.60 %   98,634     1,145   4.61 %     98,770     3,383   4.58 %   98,588     3,434   4.66 %
Jr. subordinated debt     21,859     207   3.77 %   21,814     229   4.22 %   21,768     295   5.45 %   21,726     323   5.90 %   21,680     340   6.22 %     21,814     731   4.48 %   21,638     1,050   6.49 %
Total borrowings     195,436     1,543   3.14 %   303,561     1,760   2.33 %   308,413     2,137   2.79 %   295,462     2,301   3.09 %   335,997     2,665   3.15 %     268,867     5,440   2.70 %   303,451     7,511   3.31 %
                                               
Total interest-bearing liabilities     3,087,088     4,510   0.58 %   3,272,674     6,236   0.77 %   3,162,125     9,774   1.24 %   3,094,512     10,975   1.41 %   3,112,223     12,175   1.55 %     3,173,644     20,520   0.86 %   3,052,249     34,773   1.52 %
                                               
Noninterest-bearing deposits     1,220,570         1,126,139         894,264         915,128         903,314           1,080,837         895,111      
Other liabilities     240,737         226,698         173,519         159,259         149,226           213,750         122,665      
Total noninterest-bearing liabilities     1,461,307         1,352,837         1,067,783         1,074,387         1,052,540           1,294,587         1,017,776      
                                               
Total liabilities     4,548,395         4,625,511         4,229,908         4,168,899         4,164,763           4,468,231         4,070,025      
                                               
Shareholders' equity     609,193         600,563         615,010         606,508         595,311           608,259         583,039      
                                               
Total liabilities and shareholders' equity   $ 5,157,588       $ 5,226,074       $ 4,844,918       $ 4,775,407       $ 4,760,074         $ 5,076,490       $ 4,653,064      
                                               
Net interest spread       2.84 %     2.99 %     3.05 %     2.98 %     3.14 %       2.95 %     3.22 %
Effect of noninterest-bearing sources       0.19 %     0.23 %     0.33 %     0.38 %     0.40 %       0.26 %     0.39 %
                                               
Tax-equivalent net interest margin     $ 35,139   3.03 %   $ 37,478   3.22 %   $ 36,440   3.38 %   $ 36,096   3.36 %   $ 37,518   3.54 %     $ 109,057   3.21 %   $ 112,031   3.61 %
                                               
Tax-equivalent adjustment     $ 107   0.01 %   $ 93   0.01 %   $ 107   0.01 %   $ 111   0.01 %   $ 120   0.01 %     $ 307   0.01 %   $ 375   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 $ 784   0.08 %   $ 1,017   0.10 %   $ 910   0.10 %   $ 1,027   0.11 %   $ 1,501   0.17 %     $ 2,711   0.10 %   $ 4,691   0.18 %
Retail time deposits   Expense $ (96 ) -0.10 %   $ (103 ) -0.10 %   $ (118 ) -0.12 %   $ (134 ) -0.12 %   $ (151 ) -0.12 %       (317 ) -0.11 %     (544 ) -0.14 %
Long-term FHLB advances   Expense $ 34   0.30 %   $ 35   0.30 %   $ 34   0.29 %   $ 34   0.25 %   $ 34   0.30 %       103   0.30 %     101   0.26 %
Jr. subordinated debt   Expense $ 46   0.84 %   $ 45   0.83 %   $ 45   0.83 %   $ 44   0.80 %   $ 44   0.81 %       136   0.83 %     129   0.80 %
Net interest income from fair value marks     $ 800       $ 1,040       $ 949       $ 1,083       $ 1,574         $ 2,789       $ 5,005    
                                                                           
Purchase accounting effect on tax-equivalent margin     0.07 %     0.09 %     0.09 %     0.10 %     0.15 %       0.08 %     0.16 %
                                               
* 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 Nine Months Ended
  September 30,
2020
  June 30,
2020
  March 31,
2020
  December 31,
2019
  September 30,
2019
  September 30,
2020
  September 30,
2019
Reconciliation of Net Income to Net Income (core):                          
Net income (loss) attributable to BMBC (a GAAP measure) $ 13,164     $ 15,035     $ (11,163 )   $ 16,384     $ 16,360     $ 17,036     $ 42,822  
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       -  
Add: Tax-effected non-core noninterest expense items:                          
Voluntary years of service incentive program expenses   -       -       -       -       -       -       3,553  
BMT Investment Advisers wind-down costs   -       100       -       -       -       100       -  
Severance associated with staff reduction   -       425       -       -       -       425       -  
Net income (loss) (core) (a non-GAAP measure) $ 13,164     $ 15,399     $ (11,163 )   $ 16,384     $ 16,360     $ 17,400     $ 46,375  
                           
Calculation of Basic and Diluted Earnings per Common Share (core):                          
Weighted average common shares outstanding   19,945,634       19,926,737       20,053,159       20,124,553       20,132,117       19,975,069       20,148,289  
Dilutive common shares   75,983       81,482       -       88,455       76,513       87,039       88,042  
Weighted average diluted shares   20,021,617       20,008,219       20,053,159       20,213,008       20,208,630       20,062,108       20,236,331  
Basic earnings per common share (core) (a non-GAAP measure) $ 0.66     $ 0.77     $ (0.56 )   $ 0.81     $ 0.81     $ 0.87     $ 2.30  
Diluted earnings per common share (core) (a non-GAAP measure) $ 0.66     $ 0.77     $ (0.56 )   $ 0.81     $ 0.81     $ 0.87     $ 2.29  
                           
Calculation of Return on Average Tangible Equity:                          
Net income (loss) attributable to BMBC (a GAAP measure) $ 13,164     $ 15,035     $ (11,163 )   $ 16,384     $ 16,360     $ 17,036     $ 42,822  
Add: Tax-effected amortization and impairment of intangible assets   687       719       725       753       754       2,131       2,250  
Net tangible income (numerator) $ 13,851     $ 15,754     $ (10,438 )   $ 17,137     $ 17,114     $ 19,167     $ 45,072  
                           
Average shareholders' equity $ 609,193     $ 600,563     $ 615,010     $ 606,508     $ 595,311     $ 608,259     $ 583,039  
Less: Average Noncontrolling interest   739       696       695       694       693       710       689  
Less: Average goodwill and intangible assets   (200,931 )     (201,823 )     (202,760 )     (203,663 )     (204,637 )     (201,835 )     (205,641 )
Net average tangible equity (denominator) $ 409,001     $ 399,436     $ 412,945     $ 403,539     $ 391,367     $ 407,134     $ 378,087  
                           
Return on tangible equity (a non-GAAP measure)   13.47 %     15.86 %     -10.17 %     16.85 %     17.35 %     6.29 %     15.94 %
                           
Calculation of Return on Average Tangible Equity (core):                          
Net income (loss) (core) (a non-GAAP measure) $ 13,164     $ 15,399     $ (11,163 )   $ 16,384     $ 16,360     $ 17,400     $ 46,375  
Add: Tax-effected amortization and impairment of intangible assets   687       719       725       753       754       2,131       2,250  
Net tangible income (loss) (core) (numerator) $ 13,851     $ 16,118     $ (10,438 )   $ 17,137     $ 17,114     $ 19,531     $ 48,625  
                           
Average shareholders' equity $ 609,193     $ 600,563     $ 615,010     $ 606,508     $ 595,311     $ 608,259     $ 583,039  
Less: Average Noncontrolling interest   739       696       695       694       693       710       689  
Less: Average goodwill and intangible assets   (200,931 )     (201,823 )     (202,760 )     (203,663 )     (204,637 )     (201,835 )     (205,641 )
Net average tangible equity (denominator) $ 409,001     $ 399,436     $ 412,945     $ 403,539     $ 391,367     $ 407,134     $ 378,087  
                           
Return on tangible equity (core) (a non-GAAP measure)   13.47 %     16.23 %     -10.17 %     16.85 %     17.35 %     6.41 %     17.19 %
                           
Calculation of Tangible Equity Ratio (BMBC):                          
Total shareholders' equity $ 612,617     $ 603,674     $ 593,179     $ 612,227     $ 600,935          
Less: Noncontrolling interest   767       727       695       695       694          
Less: Goodwill and intangible assets   (200,445 )     (201,315 )     (202,225 )     (203,143 )     (204,096 )        
Net tangible equity (numerator) $ 412,939     $ 403,086     $ 391,649     $ 409,779     $ 397,533          
                           
Total assets $ 5,046,939     $ 5,271,311     $ 4,923,033     $ 5,263,259     $ 4,828,641          
Less: Goodwill and intangible assets   (200,445 )     (201,315 )     (202,225 )     (203,143 )     (204,096 )        
Tangible assets (denominator) $ 4,846,494     $ 5,069,996     $ 4,720,808     $ 5,060,116     $ 4,624,545          
                           
Tangible equity ratio (BMBC)(1)   8.52 %     7.95 %     8.30 %     8.10 %     8.60 %        
                           
Calculation of Tangible Equity Ratio (BMTC):                          
Total shareholders' equity $ 652,932     $ 639,711     $ 624,959     $ 624,030     $ 641,565          
Less: Noncontrolling interest   767       727       695       695       694          
Less: Goodwill and intangible assets   (200,200 )     (201,069 )     (201,979 )     (190,694 )     (191,572 )        
Net tangible equity (numerator) $ 453,499     $ 439,369     $ 423,675     $ 434,031     $ 450,687          
                           
Total assets $ 5,043,099     $ 5,267,536     $ 4,919,004     $ 5,247,649     $ 4,813,704          
Less: Goodwill and intangible assets   (200,200 )     (201,069 )     (201,979 )     (190,694 )     (191,572 )        
Tangible assets (denominator) $ 4,842,899     $ 5,066,467     $ 4,717,025     $ 5,056,955     $ 4,622,132          
                           
Tangible equity ratio (BMTC)(1)   9.36 %     8.67 %     8.98 %     8.58 %     9.75 %