Attached files
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| 8-K - 8-K - BRYN MAWR BANK CORP | bmtc-20201022.htm |
Exhibit 99.1
| FOR RELEASE: IMMEDIATELY | Frank Leto, President, CEO | |||||||
| FOR MORE INFORMATION CONTACT: | 610-581-4730 | |||||||
| Mike Harrington, CFO | ||||||||
| 610-526-2466 | ||||||||
Bryn Mawr Bank Corporation Reports
Third Quarter Net Income of $13.2 Million
BRYN MAWR, Pa., October 22, 2020 - 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.
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•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.
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•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
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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
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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.
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•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&overridecdc=1&#company/transcripts?id=100154.
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
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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.
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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 | ||||||||||||||||||||||||||||||||||
8
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 | |||||||||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||||||
9
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 | |||||||||||||||||||||||||||||||||||
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 / 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 / portfolio loans | 1.53 | % | 1.48 | % | 1.44 | % | 0.61 | % | 0.59 | % | |||||||||||||||||||||||||||||||
ACL for originated loans and leases / Originated loans and leases (1) | 1.56 | % | 1.51 | % | 1.47 | % | 0.68 | % | 0.66 | % | |||||||||||||||||||||||||||||||
(Total ACL + 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 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.
10
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 loans and leases | (52,968) | (51,659) | (50,365) | (22,526) | (20,675) | ||||||||||||||||||||||||
| Less: Allowance for credit losses on acquired loans and leases | (3,460) | (3,315) | (3,705) | (76) | (102) | ||||||||||||||||||||||||
| Total allowance for credit losses on loans and lease | (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 | |||||||||||||||||||
11
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 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.
12
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 | |||||||||||||||||||
13
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 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 | % | |||||||||||||||||||||||||||
14
Bryn Mawr Bank Corporation
Tax-Equivalent Net Interest Margin (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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (dollars in thousands) | 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 | % | ||||||||||||||||||||||||||||||||||||||||
| * 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. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Information Regarding Accretion of Fair Value Marks
| 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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (dollars in thousands) | Interest | Inc. / (Dec.) | Effect on Yield or Rate | Inc. / (Dec.) | Effect on Yield or Rate | Inc. / (Dec.) | Effect on Yield or Rate | Inc. / (Dec.) | Effect on Yield or Rate | Inc. / (Dec.) | Effect on Yield or Rate | Inc. / (Dec.) | Effect on Yield or Rate | Inc. / (Dec.) | 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 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
15
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 (loss) 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 | % | |||||||||||||||||||||||||||
16
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 | |||||||||||||||||||||||||||||||||||
| 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 | % | |||||||||||||||||||||||||||||||
| Calculation of tangible book value per common share: | |||||||||||||||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||||||
Shares outstanding, end of period (denominator) | 19,958,186 | 19,927,893 | 19,921,524 | 20,126,296 | 20,124,193 | ||||||||||||||||||||||||||||||||||||
| Tangible book value per common share (a non-GAAP measure) | $ | 20.69 | $ | 20.23 | $ | 19.66 | $ | 20.36 | $ | 19.75 | |||||||||||||||||||||||||||||||
| Calculation of price / tangible book value: | |||||||||||||||||||||||||||||||||||||||||
| Closing share price | $ | 24.87 | $ | 27.66 | $ | 28.38 | $ | 41.24 | $ | 36.51 | |||||||||||||||||||||||||||||||
| Tangible book value per common share | $ | 20.69 | $ | 20.23 | $ | 19.66 | $ | 20.36 | $ | 19.75 | |||||||||||||||||||||||||||||||
| Price / tangible book value (a non-GAAP measure) | 120.20 | % | 136.73 | % | 144.35 | % | 202.55 | % | 184.86 | % | |||||||||||||||||||||||||||||||
(1)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 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.
17
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 | |||||||||||||||||||||||||||||||||||
| Calculation of Return on Average Assets (core) | |||||||||||||||||||||||||||||||||||||||||
| Return on average assets (GAAP) | 1.02 | % | 1.16 | % | (0.93) | % | 1.36 | % | 1.36 | % | 0.45 | % | 1.23 | % | |||||||||||||||||||||||||||
| Effect of adjustment to GAAP net income to core net income | — | % | 0.03 | % | — | % | — | % | — | % | 0.01 | % | 0.10 | % | |||||||||||||||||||||||||||
| Return on average assets (core) | 1.02 | % | 1.19 | % | (0.93) | % | 1.36 | % | 1.36 | % | 0.46 | % | 1.33 | % | |||||||||||||||||||||||||||
| Calculation of Return on Average Equity (core) | |||||||||||||||||||||||||||||||||||||||||
| Return on average equity (GAAP) | 8.60 | % | 10.07 | % | (7.30) | % | 10.72 | % | 10.90 | % | 3.74 | % | 9.82 | % | |||||||||||||||||||||||||||
| Effect of adjustment to GAAP net income to core net income | — | % | 0.24 | % | — | % | — | % | — | % | 0.08 | % | 0.81 | % | |||||||||||||||||||||||||||
| Return on average equity (core) | 8.60 | % | 10.31 | % | (7.30) | % | 10.72 | % | 10.90 | % | 3.82 | % | 10.63 | % | |||||||||||||||||||||||||||
| Calculation of Tax-equivalent net interest margin adjusting for the impact of purchase accounting | |||||||||||||||||||||||||||||||||||||||||
| Tax-equivalent net interest margin | 3.03 | % | 3.22 | % | 3.38 | % | 3.36 | % | 3.54 | % | 3.21 | % | 3.61 | % | |||||||||||||||||||||||||||
| Effect of fair value marks | 0.07 | % | 0.09 | % | 0.09 | % | 0.10 | % | 0.15 | % | 0.08 | % | 0.16 | % | |||||||||||||||||||||||||||
| Tax-equivalent net interest margin adjusting for the impact of purchase accounting | 2.96 | % | 3.13 | % | 3.29 | % | 3.26 | % | 3.39 | % | 3.13 | % | 3.45 | % | |||||||||||||||||||||||||||
| Calculation of Tax-equivalent net interest income adjusting for the impact of purchase accounting | |||||||||||||||||||||||||||||||||||||||||
| Tax-equivalent net interest income | $ | 35,139 | $ | 37,478 | $ | 36,440 | $ | 36,096 | $ | 37,518 | $ | 109,057 | $ | 112,031 | |||||||||||||||||||||||||||
| Effect of fair value marks | 800 | 1,040 | 949 | 1,083 | 1,574 | 2,789 | 5,005 | ||||||||||||||||||||||||||||||||||
| Tax-equivalent net interest income adjusting for the impact of purchase accounting | $ | 34,339 | $ | 36,438 | $ | 35,491 | $ | 35,013 | $ | 35,944 | $ | 106,268 | $ | 107,026 | |||||||||||||||||||||||||||
| Calculation of Efficiency Ratio: | |||||||||||||||||||||||||||||||||||||||||
| Noninterest expense | $ | 35,657 | $ | 34,636 | $ | 36,418 | $ | 36,430 | $ | 35,173 | $ | 106,711 | $ | 110,085 | |||||||||||||||||||||||||||
Less: certain noninterest expense items*: | |||||||||||||||||||||||||||||||||||||||||
| Amortization of intangibles | (870) | (910) | (918) | (953) | (954) | (2,698) | (2,848) | ||||||||||||||||||||||||||||||||||
| Voluntary years of service incentive program expenses | — | — | — | — | — | — | (4,498) | ||||||||||||||||||||||||||||||||||
| BMT Investment Advisers, Inc. wind-down costs | — | (127) | — | — | — | (127) | — | ||||||||||||||||||||||||||||||||||
| Severance associated with staff reduction | — | (538) | — | — | — | (538) | — | ||||||||||||||||||||||||||||||||||
Noninterest expense (adjusted) (numerator) | $ | 34,787 | $ | 33,061 | $ | 35,500 | $ | 35,477 | $ | 34,219 | $ | 103,348 | $ | 102,739 | |||||||||||||||||||||||||||
| Noninterest income | $ | 21,099 | $ | 20,566 | $ | 18,300 | $ | 23,255 | $ | 19,455 | $ | 59,965 | $ | 58,929 | |||||||||||||||||||||||||||
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 | — | ||||||||||||||||||||||||||||||||||
| Noninterest income (core) | $ | 21,099 | $ | 20,362 | $ | 18,300 | $ | 23,255 | $ | 19,455 | $ | 59,761 | $ | 58,929 | |||||||||||||||||||||||||||
| Net interest income | 35,032 | 37,385 | 36,333 | 35,985 | 37,398 | 108,750 | 111,656 | ||||||||||||||||||||||||||||||||||
Noninterest income (core) and net interest income (denominator) | $ | 56,131 | $ | 57,747 | $ | 54,633 | $ | 59,240 | $ | 56,853 | $ | 168,511 | $ | 170,585 | |||||||||||||||||||||||||||
| Efficiency ratio | 61.97 | % | 57.25 | % | 64.98 | % | 59.89 | % | 60.19 | % | 61.33 | % | 60.23 | % | |||||||||||||||||||||||||||
*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.
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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 | |||||||||||||||||||||||||||||||||||
| Supplemental Loan and ACL on Loans and Leases Information Used to Calculate Non-GAAP Measures | |||||||||||||||||||||||||||||||||||||||||
| Total ACL on loans and leases | $ | 56,428 | $ | 54,974 | $ | 54,070 | $ | 22,602 | $ | 20,777 | |||||||||||||||||||||||||||||||
| Less: ACL on acquired loans and leases | 3,460 | 3,315 | 3,705 | 76 | 102 | ||||||||||||||||||||||||||||||||||||
| ACL on originated loans and leases | $ | 52,968 | $ | 51,659 | $ | 50,365 | $ | 22,526 | $ | 20,675 | |||||||||||||||||||||||||||||||
| Total ACL on loans and leases | $ | 56,428 | $ | 54,974 | $ | 54,070 | $ | 22,602 | $ | 20,777 | |||||||||||||||||||||||||||||||
| Loan mark on acquired loans | 7,235 | 8,037 | 9,478 | 10,905 | 11,948 | ||||||||||||||||||||||||||||||||||||
| Total ACL on loans and leases + Loan mark | $ | 63,663 | $ | 63,011 | $ | 63,548 | $ | 33,507 | $ | 32,725 | |||||||||||||||||||||||||||||||
| Total Portfolio loans and leases | $ | 3,676,684 | $ | 3,722,165 | $ | 3,767,166 | $ | 3,689,313 | $ | 3,540,747 | |||||||||||||||||||||||||||||||
| Less: Originated loans and leases | 3,396,068 | 3,422,890 | 3,424,601 | 3,320,816 | 3,137,769 | ||||||||||||||||||||||||||||||||||||
| Net acquired loans | $ | 280,616 | $ | 299,275 | $ | 342,565 | $ | 368,497 | $ | 402,978 | |||||||||||||||||||||||||||||||
| Add: Loan mark on acquired loans | 7,235 | 8,037 | 9,478 | 10,905 | 11,948 | ||||||||||||||||||||||||||||||||||||
| Gross acquired loans (excludes loan mark) | $ | 287,851 | $ | 307,312 | $ | 352,043 | $ | 379,402 | $ | 414,926 | |||||||||||||||||||||||||||||||
| Originated loans and leases | 3,396,068 | 3,422,890 | 3,424,601 | 3,320,816 | 3,137,769 | ||||||||||||||||||||||||||||||||||||
| Total Gross portfolio loans and leases | $ | 3,683,919 | $ | 3,730,202 | $ | 3,776,644 | $ | 3,700,218 | $ | 3,552,695 | |||||||||||||||||||||||||||||||
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