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Bryn Mawr Bank Corporation Reports Record Quarterly Earnings of $21.3 Million, Declares $0.28 Dividend

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July 22, 2021 4:30 PM EDT

BRYN MAWR, Pa., July 22, 2021 (GLOBE NEWSWIRE) -- Bryn Mawr Bank Corporation (NASDAQ: BMTC) (the “Corporation”), parent of The Bryn Mawr Trust Company (the “Bank”), today reported net income of $21.3 million, or $1.06 diluted earnings per share, for the three months ended June 30, 2021, as compared to $17.1 million, or $0.85 diluted earnings per share, for the three months ended March 31, 2021, and $15.0 million, or $0.75 diluted earnings per share, for the three months ended June 30, 2020.

On a non-GAAP basis, core net income, which excludes due diligence and merger-related expenses related to the pending merger with WSFS Financial Corporation (“WSFS”) and other non-core income and expense items, as detailed in the appendix to this earnings release, was $21.6 million, or $1.08 diluted earnings per share, for the three months ended June 30, 2021 as compared to $18.7 million, or $0.93 diluted earnings per share, for the three months ended March 31, 2021. There were no meaningful non-core income or expense items for the three months ended June 30, 2020. Management believes the core net income measure is important in evaluating the Corporation’s performance on a more comparable basis between periods. A reconciliation of this and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release.

“We are excited to report record results, with second quarter net income exceeding $20 million for the first time in the Corporation’s history,” commented Frank Leto, President and Chief Executive Officer, continuing, “The hard work and dedication of our employees combined with an improving economy are reflected in our results. Preparation for the pending merger with WSFS are ongoing as management and staff are working diligently to ensure a smooth transition as we await regulatory approval.” In addition to regulatory approval, the merger with WSFS is subject to certain closing conditions.

On July 22, 2021, the Board of Directors of the Corporation declared a quarterly dividend of $0.28 per share, payable September 1, 2021 to shareholders of record as of August 2, 2021.

SIGNIFICANT ITEMS OF NOTE

Results of Operations – Second Quarter 2021 Compared to First Quarter 2021

  • Net income for the three months ended June 30, 2021 was $21.3 million, or $1.06 diluted earnings per share, as compared to $17.1 million, or $0.85 diluted earnings per share, for the three months ended March 31, 2021. Net interest income for the three months ended June 30, 2021 was $35.2 million, a $458 thousand increase as compared to the linked quarter. The provision for credit losses (the “Provision”), which includes the provision for credit losses on loans and leases, off-balance sheet credit exposures, and accrued interest receivable on COVID-19 deferrals, for the three months ended June 30, 2021 was a recovery of $6.6 million, as compared to a recovery of $5.2 million for the three months ended March 31, 2021. Total noninterest income increased $1.1 million, total noninterest expense decreased $2.2 million, and income tax expense increased $906 thousand for the three months ended June 30, 2021, as compared to the three months ended March 31, 2021.
  • Net interest income for the three months ended June 30, 2021 was $35.2 million, a $458 thousand increase as compared to the linked quarter. Tax-equivalent net interest income for the three months ended June 30, 2021 was $35.3 million, a $454 thousand increase as compared to the linked quarter. Tax-equivalent net interest income for the second quarter of 2021 was positively impacted by the accretion of purchase accounting fair value marks of $882 thousand, an increase of $367 thousand as compared to $515 thousand for the linked quarter. Excluding the effects of these purchase accounting fair value marks, the adjusted tax-equivalent net interest income for the three months ended June 30, 2021 was $34.5 million, an increase of $87 thousand over the linked quarter. A reconciliation of this and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release.The tax-equivalent net interest margin was 3.17% for the three months ended June 30, 2021 as compared to 3.16% for the linked quarter. Adjusting for the impact of the accretion of purchase accounting fair value marks, the adjusted tax-equivalent net interest margin was 3.09% for the three months ended June 30, 2021 as compared to 3.11% for the linked quarter. A reconciliation of this and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release.The increase in tax-equivalent net interest income adjusted for purchase accounting was driven by a decrease of $474 thousand in interest expense on deposits partially offset by a decrease of $355 thousand in tax-equivalent interest and fees earned on loans and leases for the three months ended June 30, 2021 as compared to the linked quarter.Interest expense on deposits for the three months ended June 30, 2021 decreased $466 thousand as compared to the linked quarter. The rate paid on average interest-bearing deposits for the three months ended June 30, 2021 was 0.15%, a 7 basis point decrease as compared to the linked quarter. Average interest-bearing deposits for the three months ended June 30, 2021 decreased $92.7 million as compared to the linked quarter.Tax-equivalent interest and fees earned on loans and leases for the three months ended June 30, 2021 decreased $56 thousand as compared to the linked quarter. The tax-equivalent yield on average loans and leases for the three months ended June 30, 2021 was 3.86%, a decrease of 4 basis points as compared to the linked quarter. Average loans and leases increased $4.3 million for the three months ended June 30, 2021 as compared to the linked quarter.
  • Noninterest income of $21.0 million for the three months ended June 30, 2021 increased $1.1 million as compared to the linked quarter. The increase was primarily driven by increases of $1.2 million and $275 thousand in fees for wealth management services and net gain on sale of loans, respectively, partially offset by decreases of $306 thousand and $215 thousand in capital markets revenue and insurance commissions, respectively.
  • Noninterest expense of $35.5 million for the three months ended June 30, 2021 decreased $2.2 million as compared to the linked quarter. The decrease was primarily driven by a decrease of $1.4 million in due diligence and merger-related expenses related to the pending merger with WSFS coupled with decreases of $463 thousand, $385 thousand, and $263 thousand in employee benefits, other operating expenses, and occupancy and bank premises expense, respectively.
  • A recovery of Provision of $6.6 million was recorded for the three months ended June 30, 2021 as compared to a recovery of Provision of $5.2 million for the three months ended March 31, 2021. The recovery of Provision of $6.6 million for the three months ended June 30, 2021 was primarily comprised of a $6.0 million recovery of provision for credit losses on loans and leases and a $570 thousand recovery of provision for credit losses on off-balance sheet credit exposures. The difference in Provision between the two periods was driven by changes in current and forward-looking economic assumptions included in the estimation of expected credit losses on loans and leases as of June 30, 2021 as compared to March 31, 2021. Net loan and lease charge-offs for the second quarter of 2021 totaled $2.4 million, an increase of $1.7 million as compared to $642 thousand for the first quarter of 2021.
  • The effective tax rate for the second quarter of 2021 decreased to 21.92% as compared to 22.93% for the first quarter of 2021. The decrease in effective tax rate was primarily due to $323 thousand in discrete tax items related to non-deductible merger-related expenses recognized in the first quarter of 2021 as compared to $47 thousand recognized in the second quarter of 2021.

Results of Operations – Second Quarter 2021 Compared to Second Quarter 2020

  • Net income for the three months ended June 30, 2021 was $21.3 million, or $1.06 diluted earnings per share, as compared to $15.0 million, or $0.75 diluted earnings per share, for the three months ended June 30, 2020. Net interest income for the three months ended June 30, 2021 was $35.2 million, a decrease of $2.1 million as compared to the same period in 2020. A recovery of Provision of $6.6 million was recorded for the three months ended June 30, 2021 as compared to a Provision of $3.4 million for the three months ended June 30, 2020, a difference of $10.0 million. The difference in Provision between the two periods was driven by the current and forward-looking economic impacts of the COVID-19 pandemic included in the estimation of expected credit losses on loans and leases as of June 30, 2021 as compared to June 30, 2020. Total noninterest income increased $400 thousand, total noninterest expense decreased $36 thousand, and income tax expense increased $2.0 million for the three months ended June 30, 2021 as compared to the three months ended June 30, 2020.
  • Net interest income for the three months ended June 30, 2021 was $35.2 million, a decrease of $2.1 million as compared to the same period in 2020. Tax-equivalent net interest income for the three months ended June 30, 2021 was $35.3 million, a decrease of $2.1 million as compared to the same period in 2020. Tax-equivalent net interest income for the second quarter of 2021 was positively impacted by the accretion of purchase accounting fair value marks of $882 thousand as compared to $1.0 million for the same period in 2020. Excluding the effects of these purchase accounting fair value marks, the adjusted tax-equivalent net interest income for the three months ended June 30, 2021 was $34.5 million, a decrease of $2.0 million as compared to the same period in 2020. A reconciliation of this and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release.The tax-equivalent net interest margin was 3.17% for the three months ended June 30, 2021 as compared to 3.22% for the same period in 2020. Adjusting for the impacts of the accretion of purchase accounting fair value marks, the adjusted tax-equivalent net interest margin was 3.09% for the three months ended June 30, 2021 as compared to 3.13% for the same period in 2020. A reconciliation of this and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release.The decrease in tax-equivalent net interest income adjusted for purchase accounting was driven by a decrease of $6.0 million in tax-equivalent interest and fees earned on loans and leases, partially offset by decreases of $3.6 million and $227 thousand in interest paid on deposits and interest expense on short-term borrowings, respectively, and an increase of $128 thousand in tax-equivalent interest income on available for sale investment securities for the three months ended June 30, 2021 as compared to the same period in 2020.Tax-equivalent interest and fees earned on loans and leases for the three months ended June 30, 2021 decreased $6.0 million as compared to the same period in 2020. The tax-equivalent yield on average loans and leases for the three months ended June 30, 2021 was 3.86%, a 30 basis point decrease as compared to the same period in 2020. Average loans and leases decreased $328.6 million for the three months ended June 30, 2021 as compared to the same period in 2020.Interest expense on deposits for the three months ended June 30, 2021 decreased $3.5 million as compared to the same period in 2020. The rate paid on average interest-bearing deposits for the three months ended June 30, 2021 was 0.15%, a 46 basis point decrease as compared to the same period in 2020. Average interest-bearing deposits for the three months ended June 30, 2021 decreased $448.8 million as compared to the same period in 2020.Interest expense on short-term borrowings for the three months ended June 30, 2021 decreased $227 thousand as compared to the same period in 2020. The decrease was primarily due to a $116.9 million decrease in average short-term borrowings for the three months ended June 30, 2021 as compared to the same period in 2020, coupled with a 58 basis point decrease in the rate paid for the three months ended June 30, 2021 as compared to the same period in 2020.Tax-equivalent interest income on available for sale investment securities for the three months ended June 30, 2021 increased $128 thousand as compared to the same period in 2020. The tax-equivalent yield on average available for sale investment securities for the three months ended June 30, 2021 was 1.58%, a 58 basis point decrease as compared to the same period in 2020. Average available for sale investment securities increased $223.0 million for the three months ended June 30, 2021 as compared to the same period in 2020.
  • Noninterest income of $21.0 million for the three months ended June 30, 2021 increased $400 thousand as compared to the same period in 2020. The increase was driven by a $5.0 million increase in fees for wealth management services partially offset by decreases of $2.6 million and $1.7 million in net gain on sale of loans and capital markets revenue, respectively. The increase in fees for wealth management services was driven by the lack of non-recurring costs associated with the wind-down of BMT Investment Advisers, which had a $2.2 million impact on fees for wealth management services in the second quarter of 2020, as well as the $3.62 billion increase in wealth assets under management, administration, supervision and brokerage (“wealth assets”) between June 30, 2021 and June 30, 2020. The decrease in net gain on sale of loans was driven by a $2.4 million gain on the sale of approximately $292.1 million of PPP loans in the second quarter of 2020.
  • Noninterest expense of $35.5 million for the three months ended June 30, 2021 decreased $36 thousand as compared to the same period in 2020. Decreases of $506 thousand, $404 thousand, and $226 thousand in other operating expenses, occupancy and bank premises expense, and salaries and wages, respectively, were partially offset by increases of $602 thousand, $266 thousand, and $217 thousand in Pennsylvania bank shares tax expense, merger-related expenses, and advertising expenses, respectively.
  • A recovery of Provision of $6.6 million was recorded for the three months ended June 30, 2021 as compared to a Provision of $3.4 million for the three months ended June 30, 2020, a decrease of $10.0 million. The difference in Provision between the two periods was driven by changes in the current and forward-looking economic impacts of the COVID-19 pandemic included in the estimation of expected credit losses on loans and leases as of June 30, 2021 as compared to June 30, 2020. Net loan and lease charge-offs for the second quarter of 2021 totaled $2.4 million, a decrease of $1.0 million as compared to $3.4 million for the second quarter in 2020.
  • The effective tax rate for the second quarter of 2021 increased to 21.92% as compared to 21.09% for the second quarter of 2020.

Financial Condition – June 30, 2021 Compared to December 31, 2020

  • Total assets as of June 30, 2021 were $4.96 billion, a decrease of $473.3 million from December 31, 2020. The decrease was primarily driven by a $446.2 million decrease in available for sale investment securities.
  • Available for sale investment securities as of June 30, 2021 totaled $728.7 million, a decrease of $446.2 million from December 31, 2020. The decrease was primarily due to the maturing, in January 2021, of $500.0 million of short-term U.S. Treasury securities included on the balance sheet as of December 31, 2020, partially offset by increases of $28.7 million and $23.6 million of mortgage-backed securities and U.S. Government and agency securities, respectively.
  • Total portfolio loans and leases of $3.62 billion as of June 30, 2021 decreased $11.0 million as compared to December 31, 2020. Increases of $51.7 million and $43.1 million in commercial and industrial loans and construction loans, respectively, were partially offset by decreases of $41.8 million, $25.0 million, $17.6 million and $15.9 million in residential mortgage 1st liens, owner-occupied commercial mortgages, home equity lines of credit, and nonowner-occupied commercial mortgages, respectively.As of the date of this earnings release, 9 consumer loans and leases in the amount of $1.2 million and 19 commercial loans in the amount of $31.1 million are within a deferral period under the Bank's COVID-19 related modification programs. Of those commercial loans within a deferral period, $29.2 million, or 94.0% of deferred commercial loans, continue to make interest-only payments.
  • The ACL on loans and leases was $39.2 million as of June 30, 2021 as compared to an ACL on loans and leases of $53.7 million as of December 31, 2020, a decrease of $14.5 million. The difference in ACL on loans and leases between the two periods was driven by the current and forward-looking economic impacts of the COVID-19 pandemic, as well as projected prepayments, included in the estimation of expected credit losses on loans and leases as of June 30, 2021 as compared to December 31, 2020.
  • Deposits of $3.96 billion as of June 30, 2021 decreased $416.5 million from December 31, 2020. The decrease was primarily driven by decreases of $217.1 million, $202.0 million, $60.6 million, and $29.9 million in interest-bearing demand accounts, wholesale non-maturity deposits, retail time deposits, and wholesale time deposits, respectively, offset by increases of $66.8 million, $19.6 million, and $6.7 million in noninterest-bearing deposits, money market accounts, and savings accounts, respectively. The decrease in wholesale non-maturity deposits was primarily due to a decrease of approximately $200.0 million of wholesale deposits in the first quarter of 2021, which was used to partially fund the purchase of $500.0 million of short-term U.S. Treasury securities included on the balance sheet as of December 31, 2020. The decrease in interest-bearing demand deposits was primarily driven by management's active management of excess liquidity in this current interest rate environment.
  • Borrowings of $182.5 million as of June 30, 2021, which include short-term borrowings, long-term FHLB advances, subordinated notes and junior subordinated debentures, decreased $50.4 million from December 31, 2020, primarily due to a decrease of $50.6 million in short-term borrowings.
  • Wealth assets totaled $20.63 billion as of June 30, 2021, an increase of $1.65 billion from December 31, 2020. As of June 30, 2021, wealth assets consisted of $13.02 billion of wealth assets where fees are set at fixed amounts, an increase of $1.16 billion from December 31, 2020, and $7.61 billion of wealth assets where fees are predominantly determined based on the market value of the assets held in their accounts, an increase of $492.7 million from December 31, 2020.
  • The capital ratios for the Bank and the Corporation, as of June 30, 2021, as shown in the attached tables, indicate regulatory capital levels in excess of the regulatory minimums and the levels necessary for the Bank to be considered “well capitalized.” In September 2020, the U.S. banking agencies issued a final rule that provides banking organizations with an alternative option to delay for two years an estimate of CECL’s effect on regulatory capital, relative to the incurred loss methodology’s effect on regulatory capital, followed by a three-year transition period. This final rule is consistent with the interim final rule issued by the U.S. banking agencies in March 2020. The current and prior quarter ratios reflect the Corporation's election of the five-year transition provision.

FORWARD LOOKING STATEMENTS AND SAFE HARBOR

This communication contains statements which, to the extent that they are not recitations of historical fact, may constitute forward-looking statements for purposes of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. Such forward-looking statements may include financial and other projections as well as statements regarding the Corporation’s future plans, objectives, performance, revenues, growth, profits, operating expenses or the Corporation’s underlying assumptions. The words “believe,” “intend,” “expect,” “anticipate,” “strategy,” “plan,” “estimate,” “approximately,” “target,” “project,” “propose,” “possible,” “potential,” “should” and similar expressions, among others, generally identify forward-looking statements. Such forward-looking statements are based on various assumptions (many of which are beyond the control of the Corporation) and are subject to risks and uncertainties (which change over time) and other factors which could cause actual results to differ materially from those currently anticipated. Such risks and uncertainties include, but are not limited to, the possibility that the proposed transaction with WSFS does not close when expected or at all because required regulatory or other approvals and other conditions to closing are not received or satisfied on a timely basis or at all; the delay in or failure to close for any other reason; the outcome of any legal proceedings that may be instituted against the Corporation; the occurrence of any event, change or other circumstance that could give rise to the right of one or both parties to terminate the merger agreement providing for the merger; the risk that the businesses of WSFS and the Corporation will not be integrated successfully; the possibility that the cost savings and any synergies or other anticipated benefits from the proposed transaction may not be fully realized or may take longer to realize than expected; disruption from the proposed transaction making it more difficult to maintain relationships with employees, customers or other parties with whom the Corporation has business relationships; diversion of management time on merger-related issues; the reaction to the proposed transaction of our customers, employees and counterparties; uncertainty as to the extent of the duration, scope, and impacts of the COVID-19 pandemic; and other factors, many of which are beyond the control of the Corporation. We refer you to the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Corporation's Annual Report on Form 10-K for the year ended December 31, 2020 and any updates to those risk factors set forth in the Corporation’s Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other filings, which have been filed by the Corporation with the SEC and are available on the SEC’s website at www.sec.gov. All forward-looking statements, expressed or implied, included herein are expressly qualified in their entirety by the cautionary statements contained or referred to herein. The actual results or developments anticipated may not be realized or, even if substantially realized, they may not have the expected consequences to or effects on the Corporation or its businesses or operations. We caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date on which they are made. The Corporation undertakes no obligation, and specifically declines any obligation, to revise or update any forward-looking statements, whether as a result of new information, future developments or otherwise, except as specifically required by law.

FOR MORE INFORMATION CONTACT:    Frank Leto, President, CEO610-581-4730Mike Harrington, CFO610-526-2466
   

Bryn Mawr Bank Corporation             
Summary Financial Information (unaudited)             
(dollars in thousands, except per share data)             
 As of or For the Three Months Ended For the Six Months Ended
 June 30,2021 March 31,2021 December 31,2020 September 30,2020 June 30,2020 June 30,2021 June 30,2020
Consolidated Balance Sheet (selected items)             
Interest-bearing deposits with banks$103,070  $37,089  $85,026  $241,763  $448,113     
Investment securities 749,536   761,877   1,198,346   584,529   550,974     
Loans held for sale 653   3,210   6,000   4,574   4,116     
Portfolio loans and leases 3,617,411   3,633,235   3,628,411   3,676,684   3,722,165     
Allowance for credit losses ("ACL") on loans and leases (39,163)  (47,562)  (53,709)  (56,428)  (54,974)    
Goodwill and other intangible assets 197,903   198,738   199,576   200,445   201,315     
Total assets 4,958,700   4,914,508   5,432,022   5,046,939   5,271,311     
Deposits - interest-bearing 2,491,102   2,537,534   2,974,411   2,783,188   3,026,152     
Deposits - non-interest-bearing 1,468,643   1,364,716   1,401,843   1,230,391   1,217,496     
Short-term borrowings 21,553   60,027   72,161   23,456   28,891     
Long-term FHLB advances 39,976   39,941   39,906   44,872   44,837     
Subordinated notes 98,973   98,928   98,883   98,839   98,794     
Jr. subordinated debentures 22,030   21,983   21,935   21,889   21,843     
Total liabilities 4,314,688   4,291,412   4,809,700   4,434,322   4,667,637     
Total shareholders' equity 644,012   623,096   622,322   612,617   603,674     
              
Average Balance Sheet (selected items)             
Interest-bearing deposits with banks$86,383  $110,972  $245,904  $336,225  $195,966  $98,610  $123,148 
Investment securities 766,574   760,625   701,258   574,094   542,321   763,616   542,598 
Loans held for sale 1,008   1,203   2,836   4,393   3,805   1,105   3,062 
Portfolio loans and leases 3,610,471   3,606,011   3,654,736   3,697,102   3,936,227   3,608,253   3,836,146 
Total interest-earning assets 4,464,436   4,478,811   4,604,734   4,611,814   4,678,319   4,471,584   4,504,954 
Goodwill and intangible assets 198,356   199,208   200,060   200,931   201,823   198,780   202,292 
Total assets 4,937,707   4,968,542   5,124,702   5,157,588   5,226,074   4,953,039   5,035,495 
Deposits - interest-bearing 2,520,270   2,613,004   2,765,941   2,891,652   2,969,113   2,566,381   2,911,412 
Short-term borrowings 19,935   32,020   29,130   29,913   136,816   25,944   138,700 
Long-term FHLB advances 39,956   39,921   43,634   44,849   46,161   39,938   46,748 
Subordinated notes 98,949   98,904   98,860   98,815   98,770   98,926   98,748 
Jr. subordinated debentures 22,002   21,955   21,905   21,859   21,814   21,979   21,791 
Total interest-bearing liabilities 2,701,112   2,805,804   2,959,470   3,087,088   3,272,674   2,753,168   3,217,399 
Total liabilities 4,305,637   4,343,552   4,507,444   4,548,395   4,625,511   4,324,489   4,427,708 
Total shareholders' equity 632,070   624,990   617,258   609,193   600,563   628,550   607,787 
              
Income Statement             
Net interest income$35,239  $34,781  $35,037  $35,032  $37,385  $70,020  $73,718 
(Recovery of) provision for credit losses (6,581)  (5,246)  (1,209)  4,101   3,435   (11,827)  38,785 
Noninterest income 20,966   19,841   22,006   21,099   20,566   40,807   38,866 
Noninterest expense 35,467   37,703   38,624   35,197   35,503   73,170   68,906 
Income tax expense 5,988   5,082   4,094   3,709   4,010   11,070   1,053 
Net income 21,331   17,083   15,534   13,124   15,003   38,414   3,840 
Net loss attributable to noncontrolling interest (11)  -   (3)  (40)  (32)  (11)  (32)
Net income attributable to Bryn Mawr Bank Corporation 21,342   17,083   15,537   13,164   15,035   38,425   3,872 
Basic earnings per share 1.07   0.86   0.78   0.66   0.75   1.93   0.19 
Diluted earnings per share 1.06   0.85   0.78   0.66   0.75   1.92   0.19 
Net income (core) (1) 21,599   18,707   15,518   13,164   15,399   40,306   4,236 
Basic earnings per share (core) (1) 1.09   0.94   0.78   0.66   0.77   2.03   0.21 
Diluted earnings per share (core) (1) 1.08   0.93   0.77   0.66   0.77   2.01   0.21 
Dividends paid or accrued per share 0.27   0.27   0.27   0.27   0.26   0.54   0.52 
Profitability Indicators             
Return on average assets 1.73%  1.39%  1.21%  1.02%  1.16%  1.56%  0.15%
Return on average equity 13.54%  11.09%  10.01%  8.60%  10.07%  12.33%  1.28%
Return on tangible equity(1) 20.31%  16.87%  15.44%  13.47%  15.86%  18.62%  2.63%
Return on tangible equity (core)(1) 20.55%  18.42%  15.42%  13.47%  16.23%  19.50%  2.81%
Return on average assets (core)(1) 1.75%  1.53%  1.20%  1.02%  1.19%  1.64%  0.17%
Return on average equity (core)(1) 13.71%  12.14%  10.00%  8.60%  10.31%  12.93%  1.40%
Tax-equivalent net interest margin 3.17%  3.16%  3.04%  3.03%  3.22%  3.17%  3.30%
Efficiency ratio(1) 61.14%  64.48%  64.81%  61.16%  58.75%  62.79%  59.10%
Share Data             
Closing share price$42.19  $45.51  $30.60  $24.87  $27.66     
Book value per common share$32.40  $31.34  $31.18  $30.70  $30.29     
Tangible book value per common share(1)$22.48  $21.39  $21.22  $20.69  $20.23     
Price / book value 130.22%  145.21%  98.14%  81.01%  91.32%    
Price / tangible book value(1) 187.68%  212.76%  144.20%  120.20%  136.73%    
Weighted average diluted shares outstanding 20,050,819   20,050,736   20,027,658   20,021,617   20,008,219   20,047,156   20,077,159 
Shares outstanding, end of period 19,877,892   19,878,993   19,960,294   19,958,186   19,927,893     
Wealth Management Information:             
Wealth assets under mgmt, administration, supervision and brokerage (2)$20,630,068  $20,059,371  $18,976,544  $17,244,307  $17,012,903     
Fees for wealth management services$14,031  $12,836  $12,588  $11,707  $9,069     
Capital Ratios(3)             
Bryn Mawr Trust Company ("BMTC")             
Tier I capital to risk weighted assets ("RWA") 12.50%  12.01%  11.53%  12.02%  11.68%    
Total capital to RWA 13.41%  13.11%  12.75%  13.27%  12.93%    
Tier I leverage ratio 9.96%  9.47%  8.79%  9.16%  8.75%    
Tangible equity ratio (1) 9.89%  9.41%  8.27%  9.36%  8.67%    
Common equity Tier I capital to RWA 12.50%  12.01%  11.53%  12.02%  11.68%    
              
Bryn Mawr Bank Corporation ("BMBC")             
Tier I capital to RWA 12.42%  12.08%  11.86%  11.48%  11.27%    
Total capital to RWA 15.79%  15.65%  15.55%  15.19%  15.14%    
Tier I leverage ratio 9.89%  9.53%  9.04%  8.75%  8.44%    
Tangible equity ratio (1) 9.39%  9.02%  8.09%  8.52%  7.95%    
Common equity Tier I capital to RWA 11.86%  11.52%  11.29%  10.92%  10.71%    
              
Asset Quality Indicators             
Net loan and lease charge-offs ("NCO"s)$2,391  $642  $2,340  $2,187  $3,398  $3,033  $7,471 
              
Loans and leases risk-rated Special Mention$83,009  $74,595  $68,892  $48,267  $55,171     
Total classified loans and leases 90,153   129,120   153,011   175,501   154,687     
Total criticized loans and leases$173,162  $203,715  $221,903  $223,768  $209,858     
              
Nonperforming loans and leases ("NPL"s)$10,665  $5,197  $5,306  $8,597  $8,418     
Other real estate owned ("OREO") -   -   -   -   -     
Total nonperforming assets ("NPA"s)$ 10,665  $ 5,197  $ 5,306  $ 8,597  $ 8,418     
              
Nonperforming loans and leases 30 or more days past due$3,041  $1,903  $2,001  $4,153  $3,223     
Performing loans and leases 30 to 89 days past due 3,168   5,396   10,847   9,351   10,022     
Performing loans and leases 90 or more days past due -   -   -   -   -     
Total delinquent loans and leases$ 6,209  $ 7,299  $ 12,848  $ 13,504  $ 13,245     
              
Delinquent loans and leases to total loans and leases 0.17%  0.20%  0.35%  0.37%  0.36%    
Delinquent performing loans and leases to total loans and leases 0.09%  0.15%  0.30%  0.25%  0.27%    
NCOs / average loans and leases (annualized) 0.27%  0.07%  0.25%  0.24%  0.35%  0.17%  0.39%
NPLs / total portfolio loans and leases 0.29%  0.14%  0.15%  0.23%  0.23%    
NPAs / total loans and leases and OREO 0.29%  0.14%  0.15%  0.23%  0.23%    
NPAs / total assets 0.22%  0.11%  0.10%  0.17%  0.16%    
ACL on loans and leases / NPLs 367.21%  915.18%  1012.23%  656.37%  653.05%    
ACL / classified loans and leases 43.44%  36.84%  35.10%  32.15%  35.54%    
ACL / criticized loans and leases 22.62%  23.35%  24.20%  25.22%  26.20%    
ACL on loans and leases / portfolio loans 1.08%  1.31%  1.48%  1.53%  1.48%    
ACL on loans and leases for originated loans and leases / Originated loans and leases (1) 1.10%  1.33%  1.50%  1.56%  1.51%    
(Total ACL on loans and leases + Loan mark) / Total Gross portfolio loans and leases (1) 1.21%  1.46%  1.65%  1.73%  1.69%    
              
Troubled debt restructurings ("TDR"s) included in NPLs$893  $1,480  $1,737  $1,393  $1,792     
TDRs in compliance with modified terms 5,629   6,967   7,046   8,590   10,013     
Total TDRs$ 6,522  $ 8,447  $ 8,783  $ 9,983  $ 11,805     
              
(1) Non-GAAP measure - see Appendix for Non-GAAP to GAAP reconciliation.
(2) Brokerage assets represent assets held at a registered broker dealer under a clearing agreement.
(3) Capital Ratios for the current quarter are to be considered preliminary until the Call Reports are filed. Beginning with the March 31, 2020 call report, the capital ratios reflect the Corporation’s election of a five-year transition provision to delay for two years the full impact of CECL on regulatory capital, followed by a three-year transition period.
 

Bryn Mawr Bank Corporation         
Detailed Balance Sheets (unaudited)         
(dollars in thousands)         
          
 June 30,2021 March 31,2021 December 31,2020 September 30,2020 June 30,2020
Assets         
Cash and due from banks$10,829  $10,311  $11,287  $15,670  $16,408 
Interest-bearing deposits with banks 103,070   37,089   85,026   241,763   448,113 
Cash and cash equivalents 113,899   47,400   96,313   257,433   464,521 
Investment securities, available for sale 728,738   738,974   1,174,964   564,774   530,581 
Investment securities, held to maturity 12,532   14,126   14,759   11,725   12,592 
Investment securities, trading 8,266   8,777   8,623   8,030   7,801 
Loans held for sale 653   3,210   6,000   4,574   4,116 
Portfolio loans and leases, originated 3,414,256   3,405,128   3,380,727   3,396,068   3,422,890 
Portfolio loans and leases, acquired 203,155   228,107   247,684   280,616   299,275 
Total portfolio loans and leases 3,617,411   3,633,235   3,628,411   3,676,684   3,722,165 
Less: Allowance for credit losses on originated loan and leases (37,590)  (45,285)  (50,783)  (52,968)  (51,659)
Less: Allowance for credit losses on acquired loan and leases (1,573)  (2,277)  (2,926)  (3,460)  (3,315)
Total allowance for credit losses on loans and leases (39,163)  (47,562)  (53,709)  (56,428)  (54,974)
Net portfolio loans and leases 3,578,248   3,585,673   3,574,702   3,620,256   3,667,191 
Premises and equipment 54,178   55,510   56,662   60,369   61,778 
Operating lease right-of-use assets 33,759   33,848   34,601   38,536   39,348 
Accrued interest receivable 13,519   15,058   15,440   16,609   15,577 
Mortgage servicing rights 2,173   2,493   2,626   2,881   3,440 
Bank owned life insurance 60,993   60,721   60,393   60,072   59,728 
Federal Home Loan Bank ("FHLB") stock 4,332   5,986   12,666   4,506   4,506 
Goodwill 184,012   184,012   184,012   184,012   184,012 
Intangible assets 13,891   14,726   15,564   16,433   17,303 
Other investments 18,206   17,811   17,742   17,129   17,055 
Other assets 131,301   126,183   156,955   179,600   181,762 
Total assets$4,958,700  $4,914,508  $5,432,022  $5,046,939  $5,271,311 
          
Liabilities         
Deposits         
Noninterest-bearing$1,468,643  $1,364,716  $1,401,843  $1,230,391  $1,217,496 
Interest-bearing 2,491,102   2,537,534   2,974,411   2,783,188   3,026,152 
Total deposits 3,959,745   3,902,250   4,376,254   4,013,579   4,243,648 
Short-term borrowings 21,553   60,027   72,161   23,456   28,891 
Long-term FHLB advances 39,976   39,941   39,906   44,872   44,837 
Subordinated notes 98,973   98,928   98,883   98,839   98,794 
Jr. subordinated debentures 22,030   21,983   21,935   21,889   21,843 
Operating lease liabilities 39,400   39,543   40,284   42,895   43,693 
Accrued interest payable 5,393   6,358   6,277   7,984   7,907 
Other liabilities 127,618   122,382   154,000   180,808   178,024 
Total liabilities 4,314,688   4,291,412   4,809,700   4,434,322   4,667,637 
          
Shareholders' equity         
Common stock 24,715   24,715   24,714   24,710   24,662 
Paid-in capital in excess of par value 382,655   382,202   381,653   380,770   380,167 
Less: common stock held in treasury, at cost (91,825)  (91,774)  (89,164)  (89,100)  (88,612)
Accumulated other comprehensive income, net of tax 4,798   154   8,948   10,139   9,019 
Retained earnings 324,450   308,569   296,941   286,865   279,165 
Total Bryn Mawr Bank Corporation shareholders' equity 644,793   623,866   623,092   613,384   604,401 
Noncontrolling interest (781)  (770)  (770)  (767)  (727)
Total shareholders' equity 644,012   623,096   622,322   612,617   603,674 
Total liabilities and shareholders' equity$4,958,700  $4,914,508  $5,432,022  $5,046,939  $5,271,311 
                    

Bryn Mawr Bank Corporation         
Supplemental Balance Sheet Information (unaudited)         
(dollars in thousands)         
 Portfolio Loans and Leases as of
 June 30,2021 March 31,2021 December 31,2020 September 30,2020 June 30,2020
Commercial real estate - nonowner-occupied$1,419,626  $1,408,240  $1,435,575  $1,382,757  $1,375,904 
Commercial real estate - owner-occupied 553,464   578,747   578,509   568,219   542,688 
Home equity lines of credit 151,692   157,418   169,337   179,125   194,767 
Residential mortgage - 1st liens 579,657   602,584   621,369   660,923   695,270 
Residential mortgage - junior liens 25,534   27,400   23,795   26,150   33,644 
Construction 204,358   187,472   161,308   186,415   212,374 
Total real estate loans 2,934,331   2,961,861   2,989,893   3,003,589   3,054,647 
Commercial & Industrial 498,097   486,824   446,438   465,315   457,529 
Consumer 44,814   39,226   39,683   47,043   43,762 
Leases 140,169   145,324   152,397   160,737   166,227 
Total non-real estate loans and leases 683,080   671,374   638,518   673,095   667,518 
Total portfolio loans and leases$3,617,411  $3,633,235  $3,628,411  $3,676,684  $3,722,165 
          
          
 Nonperforming Loans and Leases as of
 June 30,2021 March 31,2021 December 31,2020 September 30,2020 June 30,2020
Commercial real estate - nonowner-occupied$396  $56  $57  $849  $245 
Commercial real estate - owner-occupied 1,057   1,355   1,659   3,597   4,046 
Home equity lines of credit 945   532   729   890   915 
Residential mortgage - 1st liens 4,072   645   99   862   912 
Residential mortgage - junior liens 181   184   85   50   72 
Construction 216   -   -   -   - 
Total nonperforming real estate loans 6,867   2,772   2,629   6,248   6,190 
Commercial & Industrial 3,049   1,490   1,775   1,784   1,973 
Consumer 24   40   30   31   36 
Leases 725   895   872   534   219 
Total nonperforming non-real estate loans and leases 3,798   2,425   2,677   2,349   2,228 
Total nonperforming portfolio loans and leases$10,665  $5,197  $5,306  $8,597  $8,418 
          
          
 Net Loan and Lease Charge-Offs (Recoveries) for the Three Months Ended
 June 30,2021 March 31,2021 December 31,2020 September 30,2020 June 30,2020
Commercial real estate - nonowner-occupied$-  $-  $240  $(2) $(4)
Commercial real estate - owner-occupied (470)  189   382   494   1,234 
Home equity lines of credit 46   -   -   -   (4)
Residential mortgage - 1st liens 23   1   -   (13)  420 
Residential mortgage - junior liens -   -   -   -   - 
Construction 115   (1)  (1)  (1)  (1)
Total net charge-offs of real estate loans (286)  189   621   478   1,645 
Commercial & Industrial 2,323   (54)  897   1,522   499 
Consumer 145   107   409   134   238 
Leases 209   400   413   53   1,016 
Total net charge-offs of non-real estate loans and leases 2,677   453   1,719   1,709   1,753 
Total net charge-offs$2,391  $642  $2,340  $2,187  $3,398 
                    

Bryn Mawr Bank Corporation         
Supplemental Balance Sheet Information (unaudited)         
(dollars in thousands)         
 Investment Securities Available for Sale, at Fair Value
 June 30,2021 March 31,2021 December 31,2020 September 30, 2020 June 30,2020
U.S. Treasury securities$100  $100  $500,100  $100 $100
Obligations of the U.S. Government and agencies 116,701   110,413   93,098   90,928  114,149
State & political subdivisions - tax-free 2,168   2,168   2,171   3,178  4,583
Mortgage-backed securities 482,585   497,328   453,857   431,822  377,204
Collateralized mortgage obligations 15,145   17,073   19,263   22,253  25,873
Collateralized loan obligations 99,635   99,666   94,404   6,500  -
Corporate bonds 11,754   11,576   11,421   9,343  8,022
Other debt securities 650   650   650   650  650
Total investment securities available for sale, at fair value$728,738  $738,974  $1,174,964  $564,774 $530,581
          
          
 Unrealized Gain (Loss) on Investment Securities Available for Sale
 June 30,2021 March 31,2021 December 31,2020 September 30,2020 June 30,2020
U.S. Treasury securities$-  $-  $5  $- $-
Obligations of the U.S. Government and agencies (842)  (2,597)  649   995  1,103
State & political subdivisions - tax-free 12   16   22   27  30
Mortgage-backed securities 8,432   8,957   12,282   12,901  11,683
Collateralized mortgage obligations 458   522   583   662  702
Collateralized loan obligations 120   151   (96)  -  -
Corporate bonds 754   576   421   343  22
Total unrealized gains on investment securities available for sale$8,934  $7,625  $13,866  $14,928 $13,540
          
          
 Deposits
 June 30,2021 March 31,2021 December 31,2020 September 30,2020 June 30,2020
Interest-bearing deposits:         
Interest-bearing demand$668,664  $671,854  $885,802  $815,561 $910,441
Money market 1,183,252   1,201,115   1,163,620   1,199,429  1,239,523
Savings 289,108   286,124   282,406   245,167  249,636
Retail time deposits 270,926   301,702   331,527   366,245  400,186
Wholesale non-maturity deposits 73,011   70,605   275,011   77,356  146,463
Wholesale time deposits 6,141   6,134   36,045   79,430  79,903
Total interest-bearing deposits 2,491,102   2,537,534   2,974,411   2,783,188  3,026,152
Noninterest-bearing deposits 1,468,643   1,364,716   1,401,843   1,230,391  1,217,496
Total deposits$3,959,745  $3,902,250  $4,376,254  $4,013,579 $4,243,648
                  

Bryn Mawr Bank Corporation             
Detailed Income Statements (unaudited)             
(dollars in thousands, except per share data)             
 For the Three Months Ended For the Six Months Ended
 June 30,2021 March 31,2021 December 31,2020 September 30,2020 June 30,2020 June 30,2021 June 30,2020
Interest income:             
Interest and fees on loans and leases$34,638  $34,578  $35,632  $36,799  $40,690  $69,216  $83,485 
Interest on cash and cash equivalents 16   22   62   85   37   38   148 
Interest on investment securities 2,996   3,050   2,717   2,658   2,894   6,046   6,095 
Total interest income 37,650   37,650   38,411   39,542   43,621   75,300   89,728 
Interest expense:             
Interest on deposits 958   1,424   1,891   2,967   4,476   2,382   12,113 
Interest on short-term borrowings 5   10   9   8   232   15   685 
Interest on FHLB advances 205   203   226   234   155   408   399 
Interest on jr. subordinated debentures 199   198   205   207   229   397   524 
Interest on subordinated notes 1,044   1,034   1,043   1,094   1,144   2,078   2,289 
Total interest expense 2,411   2,869   3,374   4,510   6,236   5,280   16,010 
Net interest income 35,239   34,781   35,037   35,032   37,385   70,020   73,718 
(Recovery of) provision for credit losses ("PCL") (6,581)  (5,246)  (1,209)  4,101   3,435   (11,827)  38,785 
Net interest income after PCL 41,820   40,027   36,246   30,931   33,950   81,847   34,933 
Noninterest income:             
Fees for wealth management services 14,031   12,836   12,588   11,707   9,069   26,867   20,237 
Insurance commissions 1,249   1,464   1,393   1,682   1,303   2,713   2,836 
Capital markets revenue 1,290   1,596   841   3,314   2,975   2,886   5,336 
Service charges on deposits 733   696   756   663   603   1,429   1,449 
Loan servicing and other fees 397   304   360   373   452   701   913 
Net gain on sale of loans 525   250   842   1,021   3,134   775   3,916 
Net gain on sale of long-lived assets -   6   2,297   -   -   6   - 
Net gain (loss) on sale of other real estate owned -   -   -   -   -   -   148 
Dividends on FHLB and FRB stocks 239   222   337   127   243   461   687 
Other operating income 2,502   2,467   2,592   2,212   2,787   4,969   3,344 
Total noninterest income 20,966   19,841   22,006   21,099   20,566   40,807   38,866 
Noninterest expense:             
Salaries and wages 16,700   16,830   17,730   17,201   16,926   33,530   33,915 
Employee benefits 3,224   3,687   2,858   3,026   3,221   6,911   6,721 
Occupancy and bank premises 2,629   2,892   3,624   3,055   3,033   5,521   6,048 
Furniture, fixtures and equipment 2,188   2,242   2,400   2,481   2,120   4,430   4,551 
Impairment of long-lived assets -   -   1,605   -   -   -   - 
Advertising 413   176   554   458   196   589   597 
Amortization of intangible assets 835   838   869   870   910   1,673   1,828 
Due diligence, merger-related and merger integration expenses 266   1,646   -   -   -   1,912   - 
Professional fees 1,629   1,433   1,767   1,718   1,575   3,062   2,943 
Pennsylvania bank shares tax 718   749   (339)  115   116   1,467   232 
Data processing 1,444   1,404   1,501   1,403   1,479   2,848   2,873 
Other operating expenses 5,421   5,806   6,055   4,870   5,927   11,227   9,198 
Total noninterest expense 35,467   37,703   38,624   35,197   35,503   73,170   68,906 
Income before income taxes 27,319   22,165   19,628   16,833   19,013   49,484   4,893 
Income tax expense 5,988   5,082   4,094   3,709   4,010   11,070   1,053 
Net income$21,331  $17,083  $15,534  $13,124  $15,003  $38,414  $3,840 
Net (loss) attributable to noncontrolling interest (11)  -   (3)  (40)  (32)  (11)  (32)
Net income attributable to Bryn Mawr Bank Corporation$21,342  $17,083  $15,537  $13,164  $15,035  $38,425  $3,872 
              
Per share data:             
Weighted average shares outstanding 19,878,981   19,907,873   19,958,567   19,945,634   19,926,737   19,893,347   19,989,948 
Dilutive common shares 171,838   142,863   69,091   75,983   81,482   153,809   87,211 
Weighted average diluted shares 20,050,819   20,050,736   20,027,658   20,021,617   20,008,219   20,047,156   20,077,159 
Basic earnings per common share$1.07  $0.86  $0.78  $0.66  $0.75  $1.93  $0.19 
Diluted earnings per common share$1.06  $0.85  $0.78  $0.66  $0.75  $1.92  $0.19 
Dividends paid or accrued per common share$0.27  $0.27  $0.27  $0.27  $0.26  $0.54  $0.52 
Effective tax rate 21.92%  22.93%  20.86%  22.03%  21.09%  22.37%  21.52%
                            

Bryn Mawr Bank Corporation  
Tax-Equivalent Net Interest Margin (unaudited)  
(dollars in thousands)  
 For the Three Months Ended For the Six Months Ended
 June 30, 2021March 31, 2021December 31, 2020September 30, 2020June 30, 2020 June 30, 2021June 30, 2020
 Average BalanceInterest Income/ ExpenseAverage Rates Earned/ PaidAverage BalanceInterest Income/ ExpenseAverage Rates Earned/ PaidAverage BalanceInterest Income/ ExpenseAverage Rates Earned/ PaidAverage BalanceInterest Income/ ExpenseAverage Rates Earned/ PaidAverage BalanceInterest Income/ ExpenseAverage Rates Earned/ Paid Average BalanceInterest Income/ ExpenseAverage Rates Earned/ PaidAverage BalanceInterest Income/ ExpenseAverage Rates Earned/ Paid
                       
Assets:                      
Interest-bearing deposits with other banks$86,383$160.07%$110,972$220.08%$245,904$620.10%$336,225$850.10%$195,966$370.08% $98,610$380.08%$123,148$1480.24%
Investment securities - available for sale:                      
Taxable742,2122,9151.58%735,5082,9471.62%675,6422,5611.51%550,1992,5621.85%516,8232,7752.16% 738,8795,8611.60%516,5345,8402.27%
Tax-exempt2,168142.59%2,170142.62%2,490162.56%3,690232.48%4,572262.29% 2,169282.60%4,740542.29%
Total investment securities - available for sale744,3802,9291.58%737,6782,9611.63%678,1322,5771.51%553,8892,5851.86%521,3952,8012.16% 741,0485,8891.60%521,2745,8942.27%
                       
Investment securities - held to maturity13,414491.47%14,329732.07%15,093571.50%12,248571.85%13,126732.24% 13,8691231.79%13,1601602.44%
Investment securities - trading8,780210.96%8,618190.89%8,033864.26%7,957211.05%7,800241.24% 8,699400.93%8,164491.21%
                       
Loans and leases *3,611,47934,7303.86%3,607,21434,6743.90%3,657,57235,7343.89%3,701,49536,9013.97%3,940,03240,7794.16% 3,609,35869,4043.88%3,839,20883,6774.38%
                       
Total interest-earning assets4,464,43637,7453.39%4,478,81137,7493.42%4,604,73438,5163.33%4,611,81439,6493.42%4,678,31943,7143.76% 4,471,58475,4943.40%4,504,95489,9284.01%
                       
Cash and due from banks9,741  10,824  13,192  16,557  16,263   10,279  14,371  
Less: allowance for credit losses on loans and leases(47,192)  (53,582)  (55,634)  (55,285)  (54,113)   (50,369)  (39,950)  
Other assets510,722  532,489  562,410  584,502  585,605   521,545  556,120  
                       
Total assets$4,937,707  $4,968,542  $5,124,702  $5,157,588  $5,226,074   $4,953,039  $5,035,495  
                       
Liabilities:                      
                       
Interest-bearing deposits:                      
Savings, NOW and market rate deposits$2,154,206$2740.05%$2,178,730$3740.07%$2,285,807$4950.09%$2,282,591$1,0420.18%$2,313,150$2,3410.41% $2,166,401$6480.06%$2,255,215$7,3220.65%
Wholesale deposits78,936760.39%117,7102570.89%130,6602930.89%223,5274650.83%245,0524860.80% 98,2153330.68%249,1861,4631.18%
Retail time deposits287,1286080.85%316,5647931.02%349,4741,1031.26%385,5341,4601.51%410,9111,6491.61% 301,7651,4010.94%407,0113,3281.64%
Total interest-bearing deposits2,520,2709580.15%2,613,0041,4240.22%2,765,9411,8910.27%2,891,6522,9670.41%2,969,1134,4760.61% 2,566,3812,3820.19%2,911,41212,1130.84%
                       
Borrowings:                      
Short-term borrowings19,93550.10%32,020100.13%29,13090.12%29,91380.11%136,8162320.68% 25,944150.12%138,7006850.99%
Long-term FHLB advances39,9562052.06%39,9212032.06%43,6342262.06%44,8492342.08%46,1611551.35% 39,9384082.06%46,7483991.72%
Subordinated notes98,9491,0444.23%98,9041,0344.24%98,8601,0434.20%98,8151,0944.40%98,7701,1444.66% 98,9262,0784.24%98,7482,2894.66%
Jr. subordinated debt22,0021993.63%21,9551983.66%21,9052053.72%21,8592073.77%21,8142294.22% 21,9793973.64%21,7915244.84%
Total borrowings180,8421,4533.22%192,8001,4453.04%193,5291,4833.05%195,4361,5433.14%303,5611,7602.33% 186,7872,8983.13%305,9873,8972.56%
                       
Total interest-bearing liabilities2,701,1122,4110.36%2,805,8042,8690.41%2,959,4703,3740.45%3,087,0884,5100.58%3,272,6746,2360.77% 2,753,1685,2800.39%3,217,39916,0101.00%
                       
Noninterest-bearing deposits1,437,442  1,345,253  1,267,795  1,220,570  1,126,139   1,391,602  1,010,202  
Other liabilities167,083  192,495  280,179  240,737  226,698   179,719  200,107  
Total noninterest-bearing liabilities1,604,525  1,537,748  1,547,974  1,461,307  1,352,837   1,571,321  1,210,309  
                       
Total liabilities4,305,637  4,343,552  4,507,444  4,548,395  4,625,511   4,324,489  4,427,708  
                       
Shareholders' equity632,070  624,990  617,258  609,193  600,563   628,550  607,787  
                       
Total liabilities and shareholders' equity$4,937,707  $4,968,542  $5,124,702  $5,157,588  $5,226,074   $4,953,039  $5,035,495  
                       
Net interest spread  3.03%  3.01%  2.88%  2.84%  2.99%   3.01%  3.01%
Effect of noninterest-bearing sources  0.14%  0.15%  0.16%  0.19%  0.23%   0.16%  0.29%
                       
Tax-equivalent net interest margin $35,3343.17% $34,8803.16% $35,1423.04% $35,1393.03% $37,4783.22%  $70,2143.17% $73,9183.30%
                       
Tax-equivalent adjustment $950.01% $990.01% $1050.01% $1070.01% $930.01%  $1940.01% $2000.01%
                       
Supplemental Information Regarding Accretion of Fair Value Marks                    
 InterestIncrease (Decrease)Effect on Yield or Rate Increase (Decrease)Effect on Yield or Rate Increase (Decrease)Effect on Yield or Rate Increase (Decrease)Effect on Yield or Rate Increase (Decrease)Effect on Yield or Rate  Increase (Decrease)Effect on Yield or Rate Increase (Decrease)Effect on Yield or Rate
Loans and leasesIncome$9500.11% $5390.06% $9210.10% $7840.08% $1,0170.10%  $1,4890.08% $1,9270.10%
Retail time depositsExpense$(50)-0.07 $(58)-0.07 $(78)-0.09 $(96)-0.10 $(103)-0.10  (108)-0.07 (221)-0.11
Long-term FHLB advancesExpense$700.70% $350.36% $350.32% $340.30% $350.30%  700.35% 690.30%
Jr. subordinated debtExpense$480.88% $470.87% $460.84% $460.84% $450.83%  950.87% 900.83%
Net interest income from fair value marks $882  $515  $918  $800  $1,040   $1,432  $ 1,989 
Purchase accounting effect on tax-equivalent margin  0.08%  0.05%  0.08%  0.07%  0.09%   0.06%  0.09%
                       
* Average loans and leases include portfolio loans and leases, and loans held for sale. Non-accrual loans are also included in the average loan and leases balances.  

Bryn Mawr Bank Corporation             
Appendix - Non-GAAP to GAAP Reconciliations and Calculation of Non-GAAP Performance Measures (unaudited)
(dollars in thousands, except per share data)             
              
Statement on Non-GAAP Measures: The Corporation believes the presentation of the following non-GAAP financial measures provides useful supplemental information that is essential to an investor’s proper understanding of the results of operations and financial condition of the Corporation. Management uses non-GAAP financial measures in its analysis of the Corporation’s performance. These non-GAAP measures should not be viewed as substitutes for the financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.
              
 As of or For the Three Months Ended As of or For the Six Months Ended
 June 30,2021 March 31,2021 December 31,2020 September 30,2020 June 30,2020 June 30,2021 June 30,2020
Reconciliation of Net Income to Net Income (core):             
Net income attributable to BMBC (a GAAP measure)$21,342  $17,083  $15,537  $13,164  $15,035  $38,425  $3,872 
Less: Tax-effected non-core noninterest income:             
Gain on sale of PPP loans -   -   -   -   (1,905)  -   (1,905)
BMT Investment Advisers wind-down costs -   -   -   -   1,744   -   1,744 
Gain on sale of building -   -   (1,813)  -   -   -   - 
Add: Tax-effected non-core noninterest expense items:             
Due diligence, merger-related and merger integration expenses 257   1,624   -   -   -   1,881   - 
BMT Investment Advisers wind-down costs -   -   -   -   100   -   100 
Severance associated with staff reduction -   -   -   -   425   -   425 
Gain on early lease termination -   -   (107)  -   -   -   - 
Impairment of long-lived assets -   -   1,268   -   -   -   - 
Disposal expense of premises and equipment -   -   633   -   -   -   - 
Net income (core) (a non-GAAP measure)$ 21,599  $ 18,707  $ 15,518  $ 13,164  $ 15,399  $ 40,306  $ 4,236 
              
Calculation of Basic and Diluted Earnings per Common Share (core):             
Weighted average common shares outstanding 19,878,981   19,907,873   19,958,567   19,945,634   19,926,737   19,893,347   19,989,948 
Dilutive common shares 171,838   142,863   69,091   75,983   81,482   153,809   87,211 
Weighted average diluted shares 20,050,819   20,050,736   20,027,658   20,021,617   20,008,219   20,047,156   20,077,159 
Basic earnings per common share (core) (a non-GAAP measure)$1.09  $0.94  $0.78  $0.66  $0.77  $2.03  $0.21 
Diluted earnings per common share (core) (a non-GAAP measure)$1.08  $0.93  $0.77  $0.66  $0.77  $2.01  $0.21 
              
Calculation of Return on Average Tangible Equity:             
Net income attributable to BMBC (a GAAP measure)$21,342  $17,083  $15,537  $13,164  $15,035  $38,425  $3,872 
Add: Tax-effected amortization and impairment of intangible assets 660   662   687   687   719   1,322   1,444 
Net tangible income (numerator)$22,002  $17,745  $16,224  $13,851  $15,754  $39,747  $5,316 
              
Average shareholders' equity$632,070  $624,990  $617,258  $609,193  $600,563  $628,550  $607,787 
Less: Average Noncontrolling interest 777   770   769   739   696   774   695 
Less: Average goodwill and intangible assets (198,356)  (199,208)  (200,060)  (200,931)  (201,823)  (198,780)  (202,292)
Net average tangible equity (denominator)$434,491  $426,552  $417,967  $409,001  $399,436  $430,544  $406,190 
              
Return on tangible equity (a non-GAAP measure) 20.31%  16.87%  15.44%  13.47%  15.86%  18.62%  2.63%
              
Calculation of Return on Average Tangible Equity (core):             
Net income (core) (a non-GAAP measure)$21,599  $18,707  $15,518  $13,164  $15,399  $40,306  $4,236 
Add: Tax-effected amortization and impairment of intangible assets 660   662   687   687   719   1,322   1,444 
Net tangible income (core) (numerator)$22,259  $19,369  $16,205  $13,851  $16,118  $41,628  $5,680 
              
Average shareholders' equity$632,070  $624,990  $617,258  $609,193  $600,563  $628,550  $607,787 
Less: Average Noncontrolling interest 777   770   769   739   696   774   695 
Less: Average goodwill and intangible assets (198,356)  (199,208)  (200,060)  (200,931)  (201,823)  (198,780)  (202,292)
Net average tangible equity (denominator)$434,491  $426,552  $417,967  $409,001  $399,436  $430,544  $406,190 
              
Return on tangible equity (core) (a non-GAAP measure) 20.55%  18.42%  15.42%  13.47%  16.23%  19.50%  2.81%
              
Calculation of Tangible Equity Ratio (BMBC):             
Total shareholders' equity$644,012  $623,096  $622,322  $612,617  $603,674     
Less: Noncontrolling interest 781   770   770   767   727     
Less: Goodwill and intangible assets (197,903)  (198,738)  (199,576)  (200,445)  (201,315)    
Net tangible equity (numerator)$446,890  $425,128  $423,516  $412,939  $403,086     
              
Total assets$4,958,700  $4,914,508  $5,432,022  $5,046,939  $5,271,311     
Less: Goodwill and intangible assets (197,903)  (198,738)  (199,576)  (200,445)  (201,315)    
Tangible assets (denominator)$4,760,797  $4,715,770  $5,232,446  $4,846,494  $5,069,996     
              
Tangible equity ratio (BMBC)(1) 9.39%  9.02%  8.09%  8.52%  7.95%    
              
Calculation of Tangible Equity Ratio (BMTC):             
Total shareholders' equity$667,405  $641,034  $630,880  $653,317  $639,711     
Less: Noncontrolling interest 781   770   770   767   727     
Less: Goodwill and intangible assets (197,657)  (198,492)  (199,330)  (200,200)  (201,069)    
Net tangible equity (numerator)$470,529  $443,312  $432,320  $453,499  $439,369     
              
Total assets$4,954,878  $4,911,259  $5,428,909  $5,043,099  $5,267,536     
Less: Goodwill and intangible assets (197,657)  (198,492)  (199,330)  (200,200)  (201,069)    
Tangible assets (denominator)$4,757,221  $4,712,767  $5,229,579  $4,842,899  $5,066,467     
              
Tangible equity ratio (BMTC)(1) 9.89%  9.41%  8.27%  9.36%  8.67%    
              
Calculation of tangible book value per common share:             
Total shareholders' equity$644,012  $623,096  $622,322  $612,617  $603,674     
Less: Noncontrolling interest 781   770   770   767   727     
Less: Goodwill and intangible assets (197,903)  (198,738)  (199,576)  (200,445)  (201,315)    
Net tangible equity (numerator)$446,890  $425,128  $423,516  $412,939  $403,086     
              
Shares outstanding, end of period (denominator) 19,877,892   19,878,993   19,960,294   19,958,186   19,927,893     
              
Tangible book value per common share (a non-GAAP measure)$22.48  $21.39  $21.22  $20.69  $20.23     
              
Calculation of price / tangible book value:             
Closing share price$42.19  $45.51  $30.60  $24.87  $27.66     
Tangible book value per common share$22.48  $21.39  $21.22  $20.69  $20.23     
Price / tangible book value (a non-GAAP measure) 187.68%  212.76%  144.20%  120.20%  136.73%    
              
(1)Capital Ratios for the current quarter are to be considered preliminary until the Call Reports are filed. Beginning with the March 31, 2020 call report, the capital ratios reflect the Corporation’s election of a five-year transition provision to delay for two years the full impact of CECL on regulatory capital, followed by a three-year transition period.
              
Calculation of Return on Average Assets (core)             
Return on average assets (GAAP) 1.73%  1.39%  1.21%  1.02%  1.16%  1.56%  0.15%
Effect of adjustment to GAAP net income to core net income 0.02%  0.14%  -0.01%  0.00%  0.03%  0.08%  0.02%
Return on average assets (core) 1.75%  1.53%  1.20%  1.02%  1.19%  1.64%  0.17%
              
Calculation of Return on Average Equity (core)             
Return on average equity (GAAP) 13.54%  11.09%  10.01%  8.60%  10.07%  12.33%  1.28%
Effect of adjustment to GAAP net income to core net income 0.17%  1.05%  -0.01%  0.00%  0.24%  0.60%  0.12%
Return on average equity (core) 13.71%  12.14%  10.00%  8.60%  10.31%  12.93%  1.40%
              
Calculation of Tax-equivalent net interest margin adjusting for the impact of purchase accounting:             
Tax-equivalent net interest margin 3.17%  3.16%  3.04%  3.03%  3.22%  3.17%  3.30%
Effect of fair value marks 0.08%  0.05%  0.08%  0.07%  0.09%  0.06%  0.09%
Tax-equivalent net interest margin adjusting for the impact of purchase accounting 3.09%  3.11%  2.96%  2.96%  3.13%  3.11%  3.21%
              
 
Calculation of Tax-equivalent net interest income adjusting for the impact of purchase accounting:             
Tax-equivalent net interest income$35,334  $34,880  $35,142  $35,139  $37,478  $70,214  $73,918 
Effect of fair value marks 882   515   918   800   1,040   1,432   1,989 
Tax-equivalent net interest income adjusting for the impact of purchase accounting$34,452  $34,365  $34,224  $34,339  $36,438  $68,782  $71,929 
              
Calculation of Efficiency Ratio*:             
Noninterest expense$35,467  $37,703  $38,624  $35,197  $35,503  $73,170  $68,906 
Less: certain noninterest expense items:             
Amortization of intangibles (835)  (838)  (869)  (870)  (910)  (1,673)  (1,828)
Due diligence, merger-related and merger integration expenses (266)  (1,646)  -   -   -   (1,912)  - 
BMT Investment Advisers, Inc. wind-down costs -   -   -   -   (127)  -   (127)
Severance associated with staff reduction -   -   -   -   (538)  -   (538)
Gain on early lease termination -   -   135   -   -   -   - 
Impairment of long-lived assets -   -   (1,605)  -   -   -   - 
Disposal expense of premises and equipment -   -   (801)  -   -   -   - 
Noninterest expense (adjusted) (numerator)$34,366  $35,219  $35,484  $34,327  $33,928  $69,585  $66,413 
              
Noninterest income$20,966  $19,841  $22,006  $21,099  $20,566  $40,807  $38,866 
Less: non-core noninterest income items:             
Gain on sale of PPP loans -   -   -   -   (2,411)  -   (2,411)
BMT Investment Advisers, Inc. wind-down costs -   -   -   -   2,207   -   2,207 
Gain on sale of building -   -   (2,295)  -   -   -   - 
Noninterest income (core)$20,966  $19,841  $19,711  $21,099  $20,362  $40,807  $38,662 
Net interest income 35,239   34,781   35,037   35,032   37,385   70,020   73,718 
Noninterest income (core) and net interest income (denominator)$56,205  $54,622  $54,748  $56,131  $57,747  $110,827  $112,380 
              
Efficiency ratio 61.14%  64.48%  64.81%  61.16%  58.75%  62.79%  59.10%
 
* In calculating the Corporation's efficiency ratio, which is used by Management to identify the cost of generating each dollar of core revenue, certain non-core income and expense items as well as the amortization of intangible assets, are excluded.
              
Supplemental Loan and ACL on Loans and Leases Information Used to Calculate Non-GAAP Measures               
              
Total ACL on loans and leases$39,163  $47,562  $53,709  $56,428  $54,974     
Less: ACL on acquired loans and leases 1,573   2,277   2,926   3,460   3,315     
ACL on originated loans and leases$37,590  $45,285  $50,783  $52,968  $51,659     
                        
Total ACL on loans and leases$39,163  $47,562  $53,709  $56,428  $54,974     
Loan mark on acquired loans and leases 4,779   5,736   6,288   7,235   8,037     
Total ACL on loans and leases + Loan mark$43,942  $53,298  $59,997  $63,663  $63,011     
                        
Total Portfolio loans and leases$3,617,411  $3,633,235  $3,628,411  $3,676,684  $3,722,165     
Less: Originated loans and leases 3,414,256   3,405,128   3,380,727   3,396,068   3,422,890     
Net acquired loans$203,155  $228,107  $247,684  $280,616  $299,275     
Add: Loan mark on acquired loans 4,779   5,736   6,288   7,235   8,037     
Gross acquired loans (excludes loan mark)$207,934  $233,843  $253,972  $287,851  $307,312     
Originated loans and leases 3,414,256   3,405,128   3,380,727   3,396,068   3,422,890     
Total Gross portfolio loans and leases$3,622,190  $3,638,971  $3,634,699  $3,683,919  $3,730,202     

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Source: Bryn Mawr Bank Corporation

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