Bryn Mawr Bank Corporation Reports Fourth Quarter Net Income of $16.4 Million, Organic Loan Growth of 7.6% over 2018, Wealth Assets Under Management of $16.6 Billion, Declares $0.26 Dividend

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

As detailed in the appendix to this earnings release, management calculates core net income, a non-GAAP measure, which excludes income tax charges incurred in connection with the Tax Cuts and Jobs Act, due diligence and merger-related expenses, one-time costs associated with our voluntary Years of Service Incentive Program, and other non-core income and expense items. There were no meaningful non-core income or expense items for the three months ended December 31, 2019, September 30, 2019, or December 31, 2018. A reconciliation of core net income and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release.

“We are excited to report a strong conclusion to 2019,” commented Frank Leto, President and Chief Executive Officer. “We believe loan growth of 4.2% over the prior quarter and 7.6% over the prior year, along with strong fee income from both wealth and capital markets are evidence of the continued success of our One BMT market strategy” Mr. Leto continued, “As we look to 2020 and what is shaping up to be a very challenging operating environment, our entire organization is focused on realizing the value of the investments in talent and technology we have made over the last few years to remain a market leader while controlling future increases in expenses until such time as the environment improves,” Mr. Leto concluded.

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

SIGNIFICANT ITEMS OF NOTE

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

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

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

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

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

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

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

  • The tax-equivalent net interest margin was 3.36% for the three months ended December 31, 2019 as compared to 3.54% for the linked quarter. Adjusting for the impact of the accretion of purchase accounting fair value marks, the adjusted tax-equivalent net interest margin was 3.26% for the three months ended December 31, 2019 as compared to 3.39% for the linked quarter. A reconciliation of this and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release.

  • Noninterest income of $23.3 million for the three months ended December 31, 2019 represented a $3.8 million increase over the linked quarter. The increase was primarily due to increases of $3.3 million and $846 thousand in capital markets revenue and fees for wealth management services, respectively. Partially offsetting these increases were decreases of $176 thousand and $121 thousand in insurance commissions and other operating income, respectively. The increase in capital markets revenue was primarily due to increased volume and size of interest rate swap transactions with commercial loan customers for the three months ended December 31, 2019 as compared to the linked quarter.

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

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

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

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

  • Net income for the three months ended December 31, 2019 was $16.4 million, or $0.81 diluted earnings per share, as compared to net income of $17.1 million, or diluted earnings per share of $0.84 for the same period in 2018. Net interest income for the three months ended December 31, 2019 was $36.0 million, a decrease of $2.0 million as compared to the same period in 2018. The Provision for the three months ended December 31, 2019 decreased $137 thousand as compared to the same period in 2018. Total noninterest income increased $5.2 million, total noninterest expense increased $1.6 million, and income tax expense increased $2.5 million for the three months ended December 31, 2019 as compared to the same period in 2018.

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

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

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

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

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

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

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

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

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

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

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

  • Total assets as of December 31, 2019 were $5.26 billion, an increase of $610.8 million from December 31, 2018. The increase is primarily due to the increases in portfolio loans and leases and available for sale investment securities discussed in the bullet points below, as well as $41.0 million of operating lease right-of-use assets as of December 31, 2019 included on the balance sheet as a result of a required accounting pronouncement adopted in the first quarter of 2019.

  • Available for sale investment securities as of December 31, 2019 totaled $1.01 billion, an increase of $268.5 million from December 31, 2018. The increase was primarily due to the purchase of $500.0 million of short-term U.S. Treasury securities included on the balance sheet as of December 31, 2019, an increase of $300.0 million as compared to $200.0 million as of December 31, 2018. This increase in U.S. Treasury securities coupled with a $76.1 million increase in mortgage-backed securities, respectively, were partially offset by decreases of $93.8 million, $7.4 million, and $6.0 million in U.S. government and agency securities, collateralized mortgage obligations, and state & political subdivision securities, respectively.

  • Total portfolio loans and leases of $3.69 billion as of December 31, 2019 increased by $262.2 million from December 31, 2018, an increase of 7.6%. Increases of $256.0 million, $20.5 million, $13.7 million, and $10.3 million in commercial mortgages, leases, commercial and industrial loans, and consumer loans, respectively, were offset by decreases of $21.2 million, $12.7 million, and $4.5 million in construction loans, home equity loans and lines, and residential mortgages, respectively.

  • The allowance for loan and lease losses (the “Allowance”) as of December 31, 2019 was $22.6 million, or 0.61% of portfolio loans and leases, as compared to $19.4 million, or 0.57% of portfolio loans and leases, as of December 31, 2018. In addition to the ratio of Allowance to portfolio loans and leases, management also calculates two non-GAAP measures: the Allowance for originated loans and leases as a percentage of originated loans and leases, which was 0.68% as of December 31, 2019, as compared to 0.67% as of December 31, 2018, and the Allowance plus the remaining loan mark as a percentage of gross loans, which was 0.91% as of December 31, 2019, as compared to 1.08% as of December 31, 2018. A reconciliation of these and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release.

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

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

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

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

  • The capital ratios for the Bank and the Corporation, as of December 31, 2019, as shown in the attached tables, indicate regulatory capital levels in excess of the regulatory minimums and the levels necessary for the Bank to be considered “well capitalized.”

FORWARD LOOKING STATEMENTS AND SAFE HARBOR

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

Such forward-looking statements involve known and unknown risks and uncertainties. A number of factors, many of which are beyond the Corporation's control, could cause our actual results, events or developments, or industry results, to be materially different from any future results, events or developments expressed, implied or anticipated by such forward-looking statements, and so our business and financial condition and results of operations could be materially and adversely affected. Such factors include, among others, our need for capital, our ability to control operating costs and expenses, and to manage loan and lease delinquency rates; the credit risks of lending activities and overall quality of the composition of our loan, lease and securities portfolio; the impact of economic conditions, consumer and business spending habits, and real estate market conditions on our business and in our market area; changes in the levels of general interest rates, deposit interest rates, or net interest margin and funding sources; changes in banking regulations and policies and the possibility that any banking agency approvals we might require for certain activities will not be obtained in a timely manner or at all or will be conditioned in a manner that would impair our ability to implement our business plans; changes in accounting policies and practices or or accounting standards, including ASU 2016-13 (Topic 326), “Measurement of Credit Losses on Financial Instruments,” commonly referenced as the Current Expected Credit Loss (“CECL”) model, which will change how we estimate credit losses and may increase the required level of our allowance for credit losses after adoption on January 1, 2020; unanticipated regulatory or legal proceedings, outcomes of litigation or other contingencies; cybersecurity events; the inability of key third-party providers to perform their obligations to us; our ability to attract and retain key personnel; competition in our marketplace; war or terrorist activities; material differences in the actual financial results, cost savings and revenue enhancements associated with our acquisitions; uncertainty regarding the future of LIBOR; and other factors as described in our securities filings. All forward-looking statements and information set forth herein are based on management’s current beliefs and assumptions as of the date hereof and speak only as of the date they are made. The Corporation does not undertake to update forward-looking statements.

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

FOR MORE INFORMATION CONTACT

Frank Leto, President, CEO

610-581-4730

Mike Harrington, CFO

610-526-2466


Bryn Mawr Bank Corporation

Summary Financial Information (unaudited)

(dollars in thousands, except per share data)

As of or For the Three Months Ended

For the Twelve Months Ended

December 31,
2019

September 30,
2019

June 30,
2019

March 31,
2019

December 31,
2018

December 31,
2019

December 31,
2018

Consolidated Balance Sheet (selected items)

Interest-bearing deposits with banks

$

42,328

$

86,158

$

49,643

$

29,449

$

34,357

Investment securities

1,027,182

625,452

606,844

578,629

753,628

Loans held for sale

4,249

5,767

6,333

2,884

1,749

Portfolio loans and leases

3,689,313

3,540,747

3,534,665

3,523,514

3,427,154

Allowance for loan and lease losses ("ALLL")

(22,602

)

(20,777

)

(21,182

)

(20,616

)

(19,426

)

Goodwill and other intangible assets

203,143

204,096

205,050

206,006

207,467

Total assets

5,263,259

4,828,641

4,736,565

4,631,993

4,652,485

Deposits - interest-bearing

2,944,072

2,794,079

2,691,502

2,755,307

2,697,468

Deposits - non-interest-bearing

898,173

904,409

940,911

882,310

901,619

Short-term borrowings

493,219

203,471

207,828

124,214

252,367

Long-term FHLB advances

52,269

44,735

47,941

55,407

55,374

Subordinated notes

98,705

98,660

98,616

98,571

98,526

Jr. subordinated debentures

21,753

21,709

21,665

21,622

21,580

Total liabilities

4,651,032

4,227,706

4,146,410

4,056,886

4,087,781

Total shareholders' equity

612,227

600,935

590,155

575,107

564,704

Average Balance Sheet (selected items)

Interest-bearing deposits with banks

$

66,060

$

48,597

$

37,843

$

32,742

$

38,957

$

46,408

$

37,550

Investment securities

593,289

622,336

587,518

569,915

554,265

593,409

546,549

Loans held for sale

4,160

4,375

3,353

1,214

2,005

3,286

3,551

Portfolio loans and leases

3,594,449

3,528,548

3,520,866

3,476,525

3,397,479

3,530,416

3,352,744

Total interest-earning assets

4,257,958

4,203,856

4,149,580

4,080,396

3,992,706

4,173,519

3,940,394

Goodwill and intangible assets

203,663

204,637

205,593

206,716

207,893

205,143

207,343

Total assets

4,775,407

4,760,074

4,651,625

4,545,129

4,413,000

4,683,901

4,352,122

Deposits - interest-bearing

2,799,050

2,776,226

2,794,854

2,674,194

2,602,412

2,761,463

2,506,557

Short-term borrowings

121,612

169,985

68,529

157,652

128,429

129,457

178,582

Long-term FHLB advances

53,443

45,698

52,397

55,385

67,363

51,709

93,503

Subordinated notes

98,681

98,634

98,587

98,542

98,497

98,612

98,462

Jr. subordinated debentures

21,726

21,680

21,637

21,595

21,553

21,660

21,491

Total interest-bearing liabilities

3,094,512

3,112,223

3,036,004

3,007,368

2,918,254

3,062,901

2,898,595

Total liabilities

4,168,899

4,164,763

4,070,160

3,973,043

3,856,694

4,094,946

3,810,537

Total shareholders' equity

606,508

595,311

581,465

572,086

556,306

588,955

541,585

Income Statement

Net interest income

$

35,985

$

37,398

$

36,611

$

37,647

$

37,987

$

147,641

$

149,471

Provision for loan and lease losses

2,225

919

1,627

3,736

2,362

8,507

7,193

Noninterest income

23,255

19,455

20,221

19,253

18,097

82,184

75,982

Noninterest expense

36,430

35,173

35,188

39,724

34,845

146,515

140,303

Income tax expense

4,202

4,402

4,239

2,764

1,746

15,607

14,165

Net income

16,383

16,359

15,778

10,676

17,131

59,196

63,792

Net loss attributable to noncontrolling interest

(1

)

(1

)

(7

)

(1

)

(5

)

(10

)

-

Net income attributable to Bryn Mawr Bank Corporation

16,384

16,360

15,785

10,677

17,136

59,206

63,792

Basic earnings per share

0.81

0.81

0.78

0.53

0.85

2.94

3.15

Diluted earnings per share

0.81

0.81

0.78

0.53

0.84

2.93

3.13

Net income (core) (1)

16,384

16,360

15,785

14,230

17,167

62,759

70,620

Basic earnings per share (core) (1)

0.81

0.81

0.78

0.71

0.85

3.12

3.49

Diluted earnings per share (core) (1)

0.81

0.81

0.78

0.70

0.84

3.10

3.46

Dividends paid or accrued per share

0.26

0.26

0.26

0.25

0.25

1.03

0.94

Profitability Indicators

Return on average assets

1.36

%

1.36

%

1.36

%

0.95

%

1.54

%

1.26

%

1.47

%

Return on average equity

10.72

%

10.90

%

10.89

%

7.57

%

12.22

%

10.05

%

11.78

%

Return on tangible equity(1)

16.85

%

17.35

%

17.62

%

12.65

%

20.37

%

16.18

%

19.91

%

Return on tangible equity (core)(1)

16.85

%

17.35

%

17.62

%

16.59

%

20.40

%

17.10

%

21.95

%

Return on average assets (core)(1)

1.36

%

1.36

%

1.36

%

1.27

%

1.54

%

1.34

%

1.62

%

Return on average equity (core)(1)

10.72

%

10.90

%

10.89

%

10.09

%

12.24

%

10.66

%

13.04

%

Tax-equivalent net interest margin

3.36

%

3.54

%

3.55

%

3.75

%

3.79

%

3.55

%

3.80

%

Efficiency ratio(1)

59.89

%

60.19

%

60.23

%

60.26

%

60.35

%

60.14

%

57.17

%

Share Data

Closing share price

$

41.24

$

36.51

$

37.32

$

36.13

$

34.40

Book value per common share

$

30.42

$

29.86

$

29.31

$

28.52

$

28.01

Tangible book value per common share

$

20.36

$

19.75

$

19.16

$

18.34

$

17.75

Price / book value

135.57

%

122.27

%

127.33

%

126.68

%

122.81

%

Price / tangible book value

202.55

%

184.86

%

194.78

%

197.00

%

193.80

%

Weighted average diluted shares outstanding

20,213,008

20,208,630

20,244,409

20,271,661

20,321,283

20,233,371

20,390,167

Shares outstanding, end of period

20,126,296

20,124,193

20,131,854

20,167,729

20,163,816

Wealth Management Information:

Wealth assets under mgmt, administration, supervision and brokerage (2)

$

16,548,060

$

15,609,786

$

14,815,298

$

14,736,512

$

13,429,544

Fees for wealth management services

$

11,672

$

10,826

$

11,510

$

10,392

$

11,017

Capital Ratios(3)

Bryn Mawr Trust Company ("BMTC")

Tier I capital to risk weighted assets ("RWA")

11.48

%

12.17

%

11.83

%

11.30

%

11.42

%

Total capital to RWA

12.09

%

12.75

%

12.42

%

11.87

%

11.99

%

Tier I leverage ratio

9.37

%

9.75

%

9.61

%

9.48

%

9.48

%

Tangible equity ratio (1)

8.58

%

9.75

%

9.58

%

9.34

%

8.95

%

Common equity Tier I capital to RWA

11.48

%

12.17

%

11.83

%

11.30

%

11.42

%

Bryn Mawr Bank Corporation ("BMBC")

Tier I capital to RWA

11.43

%

11.33

%

11.12

%

10.72

%

10.92

%

Total capital to RWA

14.70

%

14.61

%

14.44

%

14.00

%

14.30

%

Tier I leverage ratio

9.33

%

9.07

%

9.04

%

8.99

%

9.06

%

Tangible equity ratio (1)

8.10

%

8.60

%

8.51

%

8.35

%

8.05

%

Common equity Tier I capital to RWA

10.87

%

10.75

%

10.54

%

10.14

%

10.32

%

Asset Quality Indicators

Net loan and lease charge-offs ("NCO"s)

$

400

$

1,324

$

1,061

$

2,546

$

1,620

$

5,331

$

5,292

Nonperforming loans and leases ("NPL"s)

$

10,648

$

14,119

$

12,179

$

19,283

$

12,820

Other real estate owned ("OREO")

-

72

155

84

417

Total nonperforming assets ("NPA"s)

$

10,648

$

14,191

$

12,334

$

19,367

$

13,237

Nonperforming loans and leases 30 or more days past due

$

6,314

$

4,940

$

8,224

$

8,489

$

7,765

Performing loans and leases 30 to 89 days past due

7,196

5,273

9,466

6,432

5,464

Performing loans and leases 90 or more days past due

-

-

-

-

-

Total delinquent loans and leases

$

13,510

$

10,213

$

17,690

$

14,921

$

13,229

Delinquent loans and leases to total loans and leases

0.37

%

0.29

%

0.50

%

0.42

%

0.39

%

Delinquent performing loans and leases to total loans and leases

0.19

%

0.15

%

0.27

%

0.18

%

0.16

%

NCOs / average loans and leases (annualized)

0.04

%

0.15

%

0.12

%

0.30

%

0.19

%

0.15

%

0.16

%

NPLs / total portfolio loans and leases

0.29

%

0.40

%

0.34

%

0.55

%

0.37

%

NPAs / total loans and leases and OREO

0.29

%

0.40

%

0.35

%

0.55

%

0.39

%

NPAs / total assets

0.20

%

0.29

%

0.26

%

0.42

%

0.28

%

ALLL / NPLs

212.27

%

147.16

%

173.92

%

106.91

%

151.53

%

ALLL / portfolio loans

0.61

%

0.59

%

0.60

%

0.59

%

0.57

%

ALLL for originated loans and leases / Originated loans and leases (1)

0.68

%

0.66

%

0.68

%

0.68

%

0.67

%

(Total ALLL + Loan mark) / Total Gross portfolio loans and leases (1)

0.91

%

0.92

%

1.00

%

1.03

%

1.08

%

Troubled debt restructurings ("TDR"s) included in NPLs

$

3,018

$

5,755

$

4,190

$

4,057

$

1,217

TDRs in compliance with modified terms

5,071

5,069

5,141

5,149

9,745

Total TDRs

$

8,089

$

10,824

$

9,331

$

9,206

$

10,962

(1) Non-GAAP measure - see Appendix for Non-GAAP to GAAP reconciliation.

(2) Brokerage assets represent assets held at a registered broker dealer under a clearing agreement.

(3) Capital Ratios for the current quarter are to be considered preliminary until the Call Reports are filed.


Bryn Mawr Bank Corporation

Detailed Balance Sheets (unaudited)

(dollars in thousands)

December 31,
2019

September 30,
2019

June 30,
2019

March 31,
2019

December 31,
2018

Assets

Cash and due from banks

$

11,603

$

8,582

$

13,742

$

13,656

$

14,099

Interest-bearing deposits with banks

42,328

86,158

49,643

29,449

34,357

Cash and cash equivalents

53,931

94,740

63,385

43,105

48,456

Investment securities, available for sale

1,005,984

604,181

588,119

559,983

737,442

Investment securities, held to maturity

12,577

12,947

10,209

10,457

8,684

Investment securities, trading

8,621

8,324

8,516

8,189

7,502

Loans held for sale

4,249

5,767

6,333

2,884

1,749

Portfolio loans and leases, originated

3,320,816

3,137,769

3,088,849

3,032,270

2,885,251

Portfolio loans and leases, acquired

368,497

402,978

445,816

491,244

541,903

Total portfolio loans and leases

3,689,313

3,540,747

3,534,665

3,523,514

3,427,154

Less: Allowance for losses on originated loan and leases...

(22,526

)

(20,675

)

(21,076

)

(20,519

)

(19,329

)

Less: Allowance for losses on acquired loan and leases

(76

)

(102

)

(106

)

(97

)

(97

)

Total allowance for loan and lease losses

(22,602

)

(20,777

)

(21,182

)

(20,616

)

(19,426

)

Net portfolio loans and leases

3,666,711

3,519,970

3,513,483

3,502,898

3,407,728

Premises and equipment

64,965

66,439

68,092

67,279

65,648

Operating lease right-of-use assets

40,961

42,200

43,116

43,985

-

Accrued interest receivable

12,482

12,746

13,312

13,123

12,585

Mortgage servicing rights

4,450

4,580

4,744

4,910

5,047

Bank owned life insurance

59,079

58,749

58,437

58,138

57,844

Federal Home Loan Bank ("FHLB") stock

23,744

16,148

14,677

10,526

14,530

Goodwill

184,012

184,012

184,012

184,012

184,012

Intangible assets

19,131

20,084

21,038

21,994

23,455

Other investments

16,683

16,683

16,517

16,526

16,526

Other assets

85,679

161,071

122,575

83,984

61,277

Total assets

$

5,263,259

$

4,828,641

$

4,736,565

$

4,631,993

$

4,652,485

Liabilities

Deposits

Noninterest-bearing

$

898,173

$

904,409

$

940,911

$

882,310

$

901,619

Interest-bearing

2,944,072

2,794,079

2,691,502

2,755,307

2,697,468

Total deposits

3,842,245

3,698,488

3,632,413

3,637,617

3,599,087

Short-term borrowings

493,219

203,471

207,828

124,214

252,367

Long-term FHLB advances

52,269

44,735

47,941

55,407

55,374

Subordinated notes

98,705

98,660

98,616

98,571

98,526

Jr. subordinated debentures

21,753

21,709

21,665

21,622

21,580

Operating lease liabilities

45,258

46,506

47,393

48,224

-

Accrued interest payable

6,248

9,015

8,244

8,674

6,652

Other liabilities

91,335

105,122

82,310

62,557

54,195

Total liabilities

4,651,032

4,227,706

4,146,410

4,056,886

4,087,781

Shareholders' equity

Common stock

24,650

24,646

24,583

24,577

24,545

Paid-in capital in excess of par value

378,606

377,806

376,652

375,655

374,010

Less: common stock held in treasury, at cost

(81,174

)

(81,089

)

(78,583

)

(76,974

)

(75,883

)

Accumulated other comprehensive income (loss), net of tax

2,187

2,698

1,700

(3,278

)

(7,513

)

Retained earnings

288,653

277,568

266,496

255,813

250,230

Total Bryn Mawr Bank Corporation shareholders' equity

612,922

601,629

590,848

575,793

565,389

Noncontrolling interest

(695

)

(694

)

(693

)

(686

)

(685

)

Total shareholders' equity

612,227

600,935

590,155

575,107

564,704

Total liabilities and shareholders' equity

$

5,263,259

$

4,828,641

$

4,736,565

$

4,631,993

$

4,652,485


Bryn Mawr Bank Corporation

Supplemental Balance Sheet Information (unaudited)

(dollars in thousands)

Portfolio Loans and Leases as of

December 31,
2019

September 30,
2019

June 30,
2019

March 31,
2019

December 31,
2018

Commercial mortgages

$

1,913,430

$

1,762,382

$

1,755,798

$

1,746,695

$

1,657,436

Home equity loans and lines

194,640

198,030

203,852

204,791

207,351

Residential mortgages

489,903

505,304

506,093

502,379

494,355

Construction

159,867

151,593

152,554

159,761

181,078

Total real estate loans

2,757,840

2,617,309

2,618,297

2,613,626

2,540,220

Commercial & Industrial

709,257

709,808

704,167

705,701

695,584

Consumer

57,138

50,481

49,335

47,821

46,814

Leases

165,078

163,149

162,866

156,366

144,536

Total non-real estate loans and leases

931,473

923,438

916,368

909,888

886,934

Total portfolio loans and leases

$

3,689,313

$

3,540,747

$

3,534,665

$

3,523,514

$

3,427,154

Nonperforming Loans and Leases as of

December 31,
2019

September 30,
2019

June 30,
2019

March 31,
2019

December 31,
2018

Commercial mortgages

$

4,270

$

7,819

$

6,072

$

5,558

$

2,568

Home equity loans and lines

779

790

49

6,904

3,616

Residential mortgages

318

301

701

2,863

3,452

Total nonperforming real estate loans

5,367

8,910

6,822

15,325

9,636

Commercial & Industrial

4,337

4,141

4,495

2,965

2,101

Consumer

61

75

60

80

108

Leases

883

993

802

913

975

Total nonperforming non-real estate loans and leases

5,281

5,209

5,357

3,958

3,184

Total nonperforming portfolio loans and leases

$

10,648

$

14,119

$

12,179

$

19,283

$

12,820

Net Loan and Lease Charge-Offs (Recoveries) for the Three Months Ended

December 31,
2019

September 30,
2019

June 30,
2019

March 31,
2019

December 31,
2018

Commercial mortgage

$

(781

)

$

656

$

(3

)

$

1,373

$

249

Home equity loans and lines

33

(22

)

180

46

107

Residential

95

(7

)

339

329

304

Construction

(1

)

(1

)

(1

)

(1

)

-

Total net charge-offs of real estate loans

(654

)

626

515

1,747

660

Commercial & Industrial

248

8

(18

)

391

298

Consumer

223

181

119

94

147

Leases

583

509

445

314

515

Total net charge-offs of non-real estate loans and leases

1,054

698

546

799

960

Total net charge-offs

$

400

$

1,324

$

1,061

$

2,546

$

1,620


Bryn Mawr Bank Corporation

Supplemental Balance Sheet Information (unaudited)

(dollars in thousands)

Investment Securities Available for Sale, at Fair Value

December 31,
2019

September 30,
2019

June 30,
2019

March 31,
2019

December 31,
2018

U.S. Treasury securities

$

500,101

$

101

$

101

$

100

$

200,013

Obligations of the U.S. Government and agencies

102,020

172,753

192,799

186,746

195,855

State & political subdivisions - tax-free

5,379

6,327

6,700

8,468

11,162

State & political subdivisions - taxable

-

-

170

170

170

Mortgage-backed securities

366,002

388,891

348,975

322,913

289,890

Collateralized mortgage obligations

31,832

35,459

38,724

40,486

39,252

Other debt securities

650

650

650

1,100

1,100

Total investment securities available for sale, at fair value

$

1,005,984

$

604,181

$

588,119

$

559,983

$

737,442

Unrealized Gain (Loss) on Investment Securities Available for Sale

December 31,
2019

September 30,
2019

June 30,
2019

March 31,
2019

December 31,
2018

U.S. Treasury securities

$

35

$

1

$

1

$

-

$

(13

)

Obligations of the U.S. Government and agencies

(159

)

188

275

(1,334

)

(2,749

)

State & political subdivisions - tax-free

13

8

8

(5

)

(39

)

State & political subdivisions - taxable

-

-

-

-

(1

)

Mortgage-backed securities

5,025

4,605

3,364

(696

)

(4,186

)

Collateralized mortgage obligations

36

180

89

(510

)

(898

)

Other debt securities

-

-

-

-

-

Total unrealized gains (losses) on investment securities available for sale

$

4,950

$

4,982

$

3,737

$

(2,545

)

$

(7,886

)

Deposits

December 31,
2019

September 30,
2019

June 30,
2019

March 31,
2019

December 31,
2018

Interest-bearing deposits:

Interest-bearing demand

$

944,915

$

778,809

$

745,134

$

664,683

$

664,749

Money market

1,106,478

983,170

966,596

961,348

862,644

Savings

220,450

248,539

263,830

265,613

247,081

Retail time deposits

405,123

467,346

502,745

531,522

542,702

Wholesale non-maturity deposits

177,865

274,121

100,047

47,744

55,031

Wholesale time deposits

89,241

42,094

113,150

284,397

325,261

Total interest-bearing deposits

2,944,072

2,794,079

2,691,502

2,755,307

2,697,468

Noninterest-bearing deposits

898,173

904,409

940,911

882,310

901,619

Total deposits

$

3,842,245

$

3,698,488

$

3,632,413

$

3,637,617

$

3,599,087



Bryn Mawr Bank Corporation

Detailed Income Statements (unaudited)

(dollars in thousands, except per share data)

For the Three Months Ended

For the Twelve Months Ended

December 31,
2019

September 30,
2019

June 30,
2019

March 31,
2019

December 31,
2018

December 31,
2019

December 31,
2018

Interest income:

Interest and fees on loans and leases

$

43,220

$

45,527

$

44,783

$

44,837

$

44,157

$

178,367

$

168,638

Interest on cash and cash equivalents

195

143

73

132

83

543

264

Interest on investment securities

3,545

3,903

3,532

3,499

3,294

14,479

12,153

Total interest income

46,960

49,573

48,388

48,468

47,534

193,389

181,055

Interest expense:

Interest on deposits

8,674

9,510

9,655

8,097

7,048

35,936

20,552

Interest on short-term borrowings

555

937

357

943

681

2,792

3,392

Interest on FHLB advances

279

243

269

278

331

1,069

1,777

Interest on jr. subordinated debentures

323

340

352

358

342

1,373

1,288

Interest on subordinated notes

1,144

1,145

1,144

1,145

1,145

4,578

4,575

Total interest expense

10,975

12,175

11,777

10,821

9,547

45,748

31,584

Net interest income

35,985

37,398

36,611

37,647

37,987

147,641

149,471

Provision for loan and lease losses (the "Provision")

2,225

919

1,627

3,736

2,362

8,507

7,193

Net interest income after Provision

33,760

36,479

34,984

33,911

35,625

139,134

142,278

Noninterest income:

Fees for wealth management services

11,672

10,826

11,510

10,392

11,017

44,400

42,326

Insurance commissions

1,666

1,842

1,697

1,672

1,459

6,877

6,808

Capital markets revenue

5,455

2,113

1,489

2,219

1,367

11,276

4,848

Service charges on deposits

858

856

852

808

798

3,374

2,989

Loan servicing and other fees

489

555

553

609

539

2,206

2,259

Net gain on sale of loans

597

674

752

319

1,606

2,342

3,283

Net gain on sale of investment securities available for sale

-

-

-

-

-

-

7

Net (loss) gain on sale of other real estate owned

(48

)

(12

)

-

(24

)

3

(84

)

295

Dividends on FHLB and FRB stocks

432

346

316

411

305

1,505

1,621

Other operating income

2,134

2,255

3,052

2,847

1,003

10,288

11,546

Total noninterest income

23,255

19,455

20,221

19,253

18,097

82,184

75,982

Noninterest expense:

Salaries and wages

18,667

17,765

17,038

20,901

17,921

74,371

66,671

Employee benefits

2,685

3,288

3,317

4,166

2,977

13,456

12,918

Occupancy and bank premises

3,206

3,008

3,125

3,252

3,135

12,591

11,599

Furniture, fixtures and equipment

2,401

2,335

2,568

2,389

2,370

9,693

8,407

Advertising

599

587

504

415

540

2,105

1,719

Amortization of intangible assets

953

954

956

938

997

3,801

3,656

Impairment (recovery) of mortgage servicing rights ("MSRs")

13

(19

)

10

17

101

21

27

Due diligence, merger-related and merger integration expenses

-

-

-

-

-

-

7,761

Professional fees

1,754

1,044

1,316

1,320

1,526

5,434

4,203

Pennsylvania bank shares tax

42

514

513

409

374

1,478

1,792

Data processing

1,517

1,377

1,303

1,320

1,340

5,517

4,942

Other operating expenses

4,593

4,320

4,538

4,597

3,564

18,048

16,608

Total noninterest expense

36,430

35,173

35,188

39,724

34,845

146,515

140,303

Income before income taxes

20,585

20,761

20,017

13,440

18,877

74,803

77,957

Income tax expense

4,202

4,402

4,239

2,764

1,746

15,607

14,165

Net income

$

16,383

$

16,359

$

15,778

$

10,676

$

17,131

$

59,196

$

63,792

Net (loss) income attributable to noncontrolling interest

(1

)

(1

)

(7

)

(1

)

(5

)

(10

)

-

Net income attributable to Bryn Mawr Bank Corporation

$

16,384

$

16,360

$

15,785

$

10,677

$

17,136

$