BRYN MAWR, Pa., Oct. 21, 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 $18.4 million, or $0.92 diluted earnings per share, for the three months ended September 30, 2021, as compared to $21.3 million, or $1.06 diluted earnings per share, for the three months ended June 30, 2021, and $13.2 million, or $0.66 diluted earnings per share, for the three months ended September 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 $18.0 million, or $0.90 diluted earnings per share, for the three months ended September 30, 2021 as compared to $21.6 million, or $1.08 diluted earnings per share, for the three months ended June 30, 2021. There were no meaningful non-core income or expense items for the three months ended September 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 pleased with our third quarter results, which was led by strong fee income as well as continued improvements in our credit metrics,” commented Frank Leto, President and Chief Executive Officer. “As it relates to our pending merger with WSFS, we are awaiting final regulatory approval to complete our combination. As I mentioned previously, we remain focused on managing the business to deliver solid financial results for our shareholders and will continue to serve our customers in support of their banking and wealth needs. Staff and management continue to work on merger preparations to ensure a seamless integration upon closing of the merger.” The Office of the Comptroller of the Currency, the primary regulator of WSFS, approved the combination with WSFS on July 21st. Final approval from the Board of Governors of the Federal Reserve in Washington, D.C. is pending. In addition to regulatory approval, the merger with WSFS is subject to certain closing conditions.

On October 21, 2021, the Board of Directors of the Corporation declared a quarterly dividend of $0.28 per share, payable December 1, 2021 to shareholders of record as of November 1, 2021 provided that the merger has not been consummated on or before the record date.

SIGNIFICANT ITEMS OF NOTE

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

  • Net income for the three months ended September 30, 2021 was $18.4 million, or $0.92 diluted earnings per share, as compared to $21.3 million, or $1.06 diluted earnings per share, for the three months ended June 30, 2021. Net interest income for the three months ended September 30, 2021 was $34.9 million, a $352 thousand decrease 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 September 30, 2021 was a recovery of $3.2 million, as compared to a recovery of $6.6 million for the three months ended June 30, 2021. Total noninterest income increased $1.6 million, total noninterest expense increased $1.4 million, and income tax expense decreased $426 thousand for the three months ended September 30, 2021, as compared to the three months ended June 30, 2021.

  • Net interest income for the three months ended September 30, 2021 was $34.9 million, a $352 thousand decrease as compared to the linked quarter. Tax-equivalent net interest income for the three months ended September 30, 2021 was $35.0 million, a $355 thousand decrease as compared to the linked quarter. Tax-equivalent net interest income for the third quarter of 2021 was positively impacted by the accretion of purchase accounting fair value marks of $385 thousand, a decrease of $532 thousand as compared to $917 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 September 30, 2021 was $34.6 million, an increase of $177 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 3.15% for the three months ended September 30, 2021 as compared to 3.17% 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 3.12% for the three months ended September 30, 2021 as compared to 3.09% 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 an increase of $219 thousand in tax-equivalent interest and fees earned on loans and leases and a decrease of $167 thousand in interest expense on deposits partially offset by a decrease of $251 thousand in tax-equivalent interest income on available for sale investment securities for the three months ended September 30, 2021 as compared to the linked quarter.

    Tax-equivalent interest and fees earned on loans and leases for the three months ended September 30, 2021 decreased $307 thousand as compared to the linked quarter. The tax-equivalent yield on average loans and leases for the three months ended September 30, 2021 was 3.77%, a decrease of 9 basis points as compared to the linked quarter. Average loans and leases increased $6.4 million for the three months ended September 30, 2021 as compared to the linked quarter.

    Interest expense on deposits for the three months ended September 30, 2021 decreased $150 thousand as compared to the linked quarter. The rate paid on average interest-bearing deposits for the three months ended September 30, 2021 was 0.13%, a 2 basis point decrease as compared to the linked quarter. Average interest-bearing deposits for the three months ended September 30, 2021 decreased $79.2 million as compared to the linked quarter.

    Tax-equivalent interest income on available for sale investment securities for the three months ended September 30, 2021 decreased $215 thousand as compared to the linked quarter. The tax-equivalent yield on average available for sale investment securities for the three months ended September 30, 2021 was 1.53%, a 5 basis point decrease as compared to the linked quarter. Average available for sale investment securities decreased $50.5 million for the three months ended September 30, 2021 as compared to the linked quarter.

  • Noninterest income of $22.6 million for the three months ended September 30, 2021 increased $1.6 million as compared to the linked quarter. The increase was primarily driven by increases of $1.5 million, $512 thousand, $275 thousand, and $146 thousand in capital markets revenue, net gain on sale of investment securities available for sale, insurance commissions, and net gain on sale of loans, respectively, partially offset by decreases of $413 thousand and $343 thousand in fees for wealth management services and other operating income, respectively.

  • Noninterest expense of $36.8 million for the three months ended September 30, 2021 increased $1.4 million as compared to the linked quarter. The increase was primarily driven by increases of $880 thousand, $794 thousand, and $436 thousand in other operating expenses, professional fees, and furniture, fixtures and equipment expenses, respectively, partially offset by decreases of $248 thousand, $180 thousand, $148 thousand, and $115 thousand merger-related expenses, Pennsylvania bank shares tax expense, advertising expenses, and occupancy and bank premises expense, respectively.

  • A recovery of Provision of $3.2 million was recorded for the three months ended September 30, 2021 as compared to a recovery of Provision of $6.6 million for the three months ended June 30, 2021. The recovery of Provision of $3.2 million for the three months ended September 30, 2021 was primarily comprised of a $2.8 million recovery of provision for credit losses on loans and leases and a $384 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 September 30, 2021 as compared to June 30, 2021. The bank recorded net loan and lease recoveries of $140 thousand for the third quarter of 2021, a difference of $2.5 million, as compared net loan and lease charge-offs of $2.4 million for the second quarter of 2021.

  • The effective tax rate for the third quarter of 2021 increased to 23.35% as compared to 21.92% for the second quarter of 2021.

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

  • Net income for the three months ended September 30, 2021 was $18.4 million, or $0.92 diluted earnings per share, as compared to $13.2 million, or $0.66 diluted earnings per share, for the three months ended September 30, 2020. Net interest income for the three months ended September 30, 2021 was $34.9 million, a decrease of $145 thousand as compared to the same period in 2020. A recovery of Provision of $3.2 million was recorded for the three months ended September 30, 2021 as compared to a Provision of $4.1 million for the three months ended September 30, 2020, a difference of $7.3 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 September 30, 2021 as compared to September 30, 2020. Total noninterest income increased $1.5 million, total noninterest expense increased $1.6 million, and income tax expense increased $1.9 million for the three months ended September 30, 2021 as compared to the three months ended September 30, 2020.

  • Net interest income for the three months ended September 30, 2021 was $34.9 million, a decrease of $145 thousand as compared to the same period in 2020. Tax-equivalent net interest income for the three months ended September 30, 2021 was $35.0 million, a decrease of $160 thousand as compared to the same period in 2020. Tax-equivalent net interest income for the third quarter of 2021 was positively impacted by the accretion of purchase accounting fair value marks of $385 thousand as compared to $800 thousand 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 September 30, 2021 was $34.6 million, an increase of $255 thousand 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 3.15% for the three months ended September 30, 2021 as compared to 3.03% 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 3.12% for the three months ended September 30, 2021 as compared to 2.96% 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 increase in tax-equivalent net interest income adjusted for purchase accounting was driven by a decrease of $2.2 million in interest paid on deposits partially offset by a decrease of $2.1 million in tax-equivalent interest and fees earned on loans and leases.

    Tax-equivalent interest and fees earned on loans and leases for the three months ended September 30, 2021 decreased $2.5 million as compared to the same period in 2020. The tax-equivalent yield on average loans and leases for the three months ended September 30, 2021 was 3.77%, a 20 basis point decrease as compared to the same period in 2020. Average loans and leases decreased $83.6 million for the three months ended September 30, 2021 as compared to the same period in 2020.

    Interest expense on deposits for the three months ended September 30, 2021 decreased $2.2 million as compared to the same period in 2020. The rate paid on average interest-bearing deposits for the three months ended September 30, 2021 was 0.13%, a 28 basis point decrease as compared to the same period in 2020. Average interest-bearing deposits for the three months ended September 30, 2021 decreased $450.6 million as compared to the same period in 2020.

  • Noninterest income of $22.6 million for the three months ended September 30, 2021 increased $1.5 million as compared to the same period in 2020. The increase was driven by increases of $1.9 million and $512 thousand in fees for wealth management services and net gain on sale of investment securities available for sale, respectively, partially offset by decreases of $491 thousand, $350 thousand, and $158 thousand in capital markets revenue, net gain on sale of loans, and insurance commissions, respectively.

  • Noninterest expense of $36.8 million for the three months ended September 30, 2021 increased $1.6 million as compared to the same period in 2020. Increases of $1.4 million, $705 thousand, and $423 thousand in other operating expenses, professional fees, and Pennsylvania bank shares tax expense, respectively, were partially offset by decreases of $541 thousand, $450 thousand, and $193 thousand in occupancy and bank premises expense, salaries and wages, and advertising expenses, respectively.

  • A recovery of Provision of $3.2 million was recorded for the three months ended September 30, 2021 as compared to a Provision of $4.1 million for the three months ended September 30, 2020, a decrease of $7.3 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 September 30, 2021 as compared to September 30, 2020. The bank recorded net loan and lease recoveries of $140 thousand for the third quarter of 2021, a difference of $2.3 million, as compared net loan and lease charge-offs of $2.2 million for the third quarter of 2020.

  • The effective tax rate for the third quarter of 2021 increased to 23.35% as compared to 22.03% for the third quarter of 2020.

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

  • Total assets as of September 30, 2021 were $4.88 billion, a decrease of $552.9 million from December 31, 2020. The decrease was primarily driven by a $518.5 million decrease in available for sale investment securities.

  • Available for sale investment securities as of September 30, 2021 totaled $656.5 million, a decrease of $518.5 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.

  • Total portfolio loans and leases of $3.62 billion as of September 30, 2021 decreased $10.5 million as compared to December 31, 2020. Decreases of $61.4 million, $41.0 million, $22.6 million, and $17.5 million in residential mortgage 1st liens, owner-occupied commercial mortgages, home equity lines of credit, and leases, respectively, were partially offset by increases of $74.1 million, $29.0 million, and $21.5 million in construction loans, nonowner-occupied commercial mortgages, and commercial and industrial loans, respectively.

    As of the date of this earnings release, all loans and leases which had previously been granted payment deferrals related to COVID-19 have resumed regular payments.

  • The allowance for credit losses (“ACL”) on loans and leases was $36.5 million as of September 30, 2021 as compared to an ACL on loans and leases of $53.7 million as of December 31, 2020, a decrease of $17.2 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 September 30, 2021 as compared to December 31, 2020.

  • Deposits of $3.82 billion as of September 30, 2021 decreased $560.7 million from December 31, 2020. The decrease was primarily driven by decreases of $235.5 million, $204.2 million, $92.9 million, $42.5 million, and $29.9 million in wholesale non-maturity deposits, interest-bearing demand accounts, retail time deposits, money market accounts, and wholesale time deposits, respectively, offset by increases of $41.8 million and $2.5 million in noninterest-bearing deposits 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 $243.1 million as of September 30, 2021, which include short-term borrowings, long-term FHLB advances, subordinated notes and junior subordinated debentures, decreased $10.2 million from December 31, 2020.

  • Wealth assets under management, administration, supervision and brokerage (“wealth assets”) totaled $21.39 billion as of September 30, 2021, an increase of $2.41 billion from December 31, 2020. As of September 30, 2021, wealth assets consisted of $13.78 billion of wealth assets where fees are set at fixed amounts, an increase of $1.92 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 $485.7 million from December 31, 2020.

  • The capital ratios for the Bank and the Corporation, as of September 30, 2021, as shown in the attached tables, indicate regulatory capital levels in excess of the regulatory minimums and the levels necessary for the Bank to be considered “well capitalized.” In September 2020, the U.S. banking agencies issued a final rule that provides banking organizations with an alternative option to delay for two years an estimate of CECL’s effect on regulatory capital, relative to the incurred loss methodology’s effect on regulatory capital, followed by a three-year transition period. This final rule is consistent with the interim final rule issued by the U.S. banking agencies in March 2020. The current and prior quarter ratios reflect the Corporation's election of the five-year transition provision.

FORWARD LOOKING STATEMENTS AND SAFE HARBOR

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

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


Bryn Mawr Bank Corporation             
Summary Financial Information (unaudited)             
(dollars in thousands, except per share data)             
                           
  As of or For the Three Months Ended   For the Nine Months Ended
  September 30,
2021
  June 30,
2021
  March 31,
2021
  December 31,
2020
  September 30,
2020
  September 30,
2021
  September 30,
2020
Consolidated Balance Sheet (selected items)                          
Interest-bearing deposits with banks $ 39,213     $ 103,070     $ 37,089     $ 85,026     $ 241,763          
Investment securities   676,171       749,536       761,877       1,198,346       584,529          
Loans held for sale   634       653       3,210       6,000       4,574          
Portfolio loans and leases   3,617,915       3,617,411       3,633,235       3,628,411       3,676,684          
Allowance for credit losses ("ACL") on loans and leases   (36,546 )     (39,163 )     (47,562 )     (53,709 )     (56,428 )        
Goodwill and other intangible assets   197,068       197,903       198,738       199,576       200,445          
Total assets   4,879,079       4,958,700       4,914,508       5,432,022       5,046,939          
Deposits - interest-bearing   2,371,871       2,491,102       2,537,534       2,974,411       2,783,188          
Deposits - non-interest-bearing   1,443,661       1,468,643       1,364,716       1,401,843       1,230,391          
Short-term borrowings   96,965       21,553       60,027       72,161       23,456          
Long-term FHLB advances   25,000       39,976       39,941       39,906       44,872          
Subordinated notes   99,017       98,973       98,928       98,883       98,839          
Jr. subordinated debentures   22,079       22,030       21,983       21,935       21,889          
Total liabilities   4,224,324       4,314,688       4,291,412       4,809,700       4,434,322          
Total shareholders' equity   654,755       644,012       623,096       622,322       612,617          
                           
Average Balance Sheet (selected items)                          
Interest-bearing deposits with banks $ 67,665     $ 86,383     $ 110,972     $ 245,904     $ 336,225     $ 88,181     $ 194,652  
Investment securities   714,371       766,574       760,625       701,258       574,094       747,021       553,174  
Loans and leases   3,617,866       3,611,479       3,607,214       3,657,572       3,701,495       3,612,225       3,792,969  
Total interest-earning assets   4,399,902       4,464,436       4,478,811       4,604,734       4,611,814       4,447,427       4,540,795  
Goodwill and intangible assets   197,525       198,356       199,208       200,060       200,931       198,357       201,835  
Total assets   4,900,845       4,937,707       4,968,542       5,124,702       5,157,588       4,935,449       5,076,490  
Deposits - interest-bearing   2,441,079       2,520,270       2,613,004       2,765,941       2,891,652       2,524,154       2,904,777  
Short-term borrowings   35,166       19,935       32,020       29,130       29,913       29,051       102,173  
Long-term FHLB advances   33,795       39,956       39,921       43,634       44,849       37,868       46,110  
Subordinated notes   98,993       98,949       98,904       98,860       98,815       98,949       98,770  
Jr. subordinated debentures   22,051       22,002       21,955       21,905       21,859       22,003       21,814  
Total interest-bearing liabilities   2,631,084       2,701,112       2,805,804       2,959,470       3,087,088       2,712,025       3,173,644  
Total liabilities   4,248,121       4,305,637       4,343,552       4,507,444       4,548,395       4,298,753       4,468,231  
Total shareholders' equity   652,724       632,070       624,990       617,258       609,193       636,696       608,259  
                           
Income Statement                          
Net interest income $ 34,887     $ 35,239     $ 34,781     $ 35,037     $ 35,032     $ 104,907     $ 108,750  
(Recovery of) provision for credit losses   (3,186 )     (6,581 )     (5,246 )     (1,209 )     4,101       (15,013 )     42,886  
Noninterest income   22,587       20,966       19,841       22,006       21,099       63,394       59,965  
Noninterest expense   36,840       35,467       37,703       38,624       35,197       110,010       104,103  
Income tax expense   5,562       5,988       5,082       4,094       3,709       16,632       4,762  
Net income   18,258       21,331       17,083       15,534       13,124       56,672       16,964  
Net loss attributable to noncontrolling interest   (124 )     (11 )     -       (3 )     (40 )     (135 )     (72 )
Net income attributable to Bryn Mawr Bank Corporation   18,382       21,342       17,083       15,537       13,164       56,807       17,036  
Basic earnings per share   0.92       1.07       0.86       0.78       0.66       2.86       0.85  
Diluted earnings per share   0.92       1.06       0.85       0.78       0.66       2.83       0.85  
Net income (core) (1)   18,008       21,599       18,707       15,518       13,164       58,314       17,400  
Basic earnings per share (core) (1)   0.91       1.09       0.94       0.78       0.66       2.93       0.87  
Diluted earnings per share (core) (1)   0.90       1.08       0.93       0.77       0.66       2.91       0.87  
Dividends paid or accrued per share   0.28       0.27       0.27       0.27       0.27       0.82       0.79  
Profitability Indicators                          
Return on average assets   1.49 %     1.73 %     1.39 %     1.21 %     1.02 %     1.54 %     0.45 %
Return on average equity   11.17 %     13.54 %     11.09 %     10.01 %     8.60 %     11.93 %     3.74 %
Return on tangible equity(1)   16.57 %     20.31 %     16.87 %     15.44 %     13.47 %     17.90 %     6.29 %
Return on tangible equity (core)(1)   16.24 %     20.55 %     18.42 %     15.42 %     13.47 %     18.36 %     6.41 %
Return on average assets (core)(1)   1.46 %     1.75 %     1.53 %     1.20 %     1.02 %     1.58 %     0.46 %
Return on average equity (core)(1)   10.95 %     13.71 %     12.14 %     10.00 %     8.60 %     12.25 %     3.82 %
Tax-equivalent net interest margin   3.15 %     3.17 %     3.16 %     3.04 %     3.03 %     3.16 %     3.21 %
Efficiency ratio(1)   63.18 %     61.14 %     64.48 %     64.81 %     61.16 %     62.92 %     61.33 %
Share Data                          
Closing share price $ 45.95     $ 42.19     $ 45.51     $ 30.60     $ 24.87          
Book value per common share $ 32.90     $ 32.40     $ 31.34     $ 31.18     $ 30.70          
Tangible book value per common share(1) $ 23.04     $ 22.48     $ 21.39     $ 21.22     $ 20.69          
Price / book value   139.67 %     130.22 %     145.21 %     98.14 %     81.01 %        
Price / tangible book value(1)   199.44 %     187.68 %     212.76 %     144.20 %     120.20 %        
Weighted average diluted shares outstanding   20,062,018       20,050,819       20,050,736       20,027,658       20,021,617       20,056,415       20,062,108  
Shares outstanding, end of period   19,900,823       19,877,892       19,878,993       19,960,294       19,958,186          
Wealth Management Information:                          
Wealth assets under mgmt, administration, supervision and brokerage (2) $ 21,386,682     $ 20,630,068     $ 20,059,371     $ 18,976,544     $ 17,244,307          
Fees for wealth management services $ 13,618     $ 14,031     $ 12,836     $ 12,588     $ 11,707          
Capital Ratios(3)                          
Bryn Mawr Trust Company ("BMTC")                          
Tier I capital to risk weighted assets ("RWA")   13.12 %     12.50 %     12.01 %     11.53 %     12.02 %        
Total capital to RWA   13.98 %     13.41 %     13.11 %     12.75 %     13.27 %        
Tier I leverage ratio   10.45 %     9.96 %     9.47 %     8.79 %     9.16 %        
Tangible equity ratio (1)   10.42 %     9.89 %     9.41 %     8.27 %     9.36 %        
Common equity Tier I capital to RWA   13.12 %     12.50 %     12.01 %     11.53 %     12.02 %        
                           
Bryn Mawr Bank Corporation ("BMBC")                          
Tier I capital to RWA   12.90 %     12.42 %     12.08 %     11.86 %     11.48 %        
Total capital to RWA   16.08 %     15.79 %     15.65 %     15.55 %     15.19 %        
Tier I leverage ratio   10.27 %     9.91 %     9.53 %     9.04 %     8.75 %        
Tangible equity ratio (1)   9.79 %     9.39 %     9.02 %     8.09 %     8.52 %        
Common equity Tier I capital to RWA   12.33 %     11.86 %     11.52 %     11.29 %     10.92 %        
                           
Asset Quality Indicators                          
Net loan and lease charge-offs ("NCO"s) $ (140 )   $ 2,391     $ 642     $ 2,340     $ 2,187     $ 2,893     $ 9,658  
                           
Loans and leases risk-rated Special Mention $ 91,750     $ 83,009     $ 74,595     $ 68,892     $ 48,267          
Total classified loans and leases   64,303       90,153       129,120       153,011       175,501          
Total criticized loans and leases $ 156,053     $ 173,162     $ 203,715     $ 221,903     $ 223,768          
                           
Nonperforming loans and leases ("NPL"s) $ 8,047     $ 10,665     $ 5,197     $ 5,306     $ 8,597          
Other real estate owned ("OREO")   -       -       -       -       -          
Total nonperforming assets ("NPA"s) $ 8,047     $ 10,665     $ 5,197     $ 5,306     $ 8,597          
                           
Nonperforming loans and leases 30 or more days past due $ 1,473     $ 3,041     $ 1,903     $ 2,001     $ 4,153          
Performing loans and leases 30 to 89 days past due   3,360       3,168       5,396       10,847       9,351          
Performing loans and leases 90 or more days past due   -       -       -       -       -          
Total delinquent loans and leases $ 4,833     $ 6,209     $ 7,299     $ 12,848     $ 13,504          
                           
Delinquent loans and leases to total loans and leases   0.13 %     0.17 %     0.20 %     0.35 %     0.37 %        
Delinquent performing loans and leases to total loans and leases   0.09 %     0.09 %     0.15 %     0.30 %     0.25 %        
NCOs / average loans and leases (annualized)   (0.02 )%     0.27 %     0.07 %     0.25 %     0.24 %     0.11 %     0.34 %
NPLs / total portfolio loans and leases   0.22 %     0.29 %     0.14 %     0.15 %     0.23 %        
NPAs / total loans and leases and OREO   0.22 %     0.29 %     0.14 %     0.15 %     0.23 %        
NPAs / total assets   0.16 %     0.22 %     0.11 %     0.10 %     0.17 %        
ACL on loans and leases / NPLs   454.16 %     367.21 %     915.18 %     1012.23 %     656.37 %        
ACL / classified loans and leases   56.83 %     43.44 %     36.84 %     35.10 %     32.15 %        
ACL / criticized loans and leases   23.42 %     22.62 %     23.35 %     24.20 %     25.22 %        
ACL on loans and leases / portfolio loans   1.01 %     1.08 %     1.31 %     1.48 %     1.53 %        
ACL on loans and leases for originated loans and leases / Originated loans and leases (1)   1.03 %     1.10 %     1.33 %     1.50 %     1.56 %        
(Total ACL on loans and leases + Loan mark) / Total Gross portfolio loans and leases (1)   1.13 %     1.21 %     1.46 %     1.65 %     1.73 %        
                           
Troubled debt restructurings ("TDR"s) included in NPLs $ 4,753     $ 893     $ 1,480     $ 1,737     $ 1,393          
TDRs in compliance with modified terms   4,532       5,629       6,967       7,046       8,590          
Total TDRs $ 9,285     $ 6,522     $ 8,447     $ 8,783     $ 9,983          
                           
(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)
                   
  September 30,
2021
  June 30,
2021
  March 31,
2021
  December 31,
2020
  September 30,
2020
Assets                  
Cash and due from banks $ 9,458     $ 10,829     $ 10,311     $ 11,287     $ 15,670  
Interest-bearing deposits with banks   39,213       103,070       37,089       85,026       241,763  
Cash and cash equivalents   48,671       113,899       47,400       96,313       257,433  
Investment securities, available for sale   656,501       728,738       738,974       1,174,964       564,774  
Investment securities, held to maturity   11,542       12,532       14,126       14,759       11,725  
Investment securities, trading   8,128       8,266       8,777       8,623       8,030  
Loans held for sale   634       653       3,210       6,000       4,574  
Portfolio loans and leases, originated   3,431,903       3,414,256       3,405,128       3,380,727       3,396,068  
Portfolio loans and leases, acquired   186,012       203,155       228,107       247,684       280,616  
Total portfolio loans and leases   3,617,915       3,617,411       3,633,235       3,628,411       3,676,684  
Less: Allowance for credit losses on originated loan and leases   (35,218 )     (37,590 )     (45,285 )     (50,783 )     (52,968 )
Less: Allowance for credit losses on acquired loan and leases   (1,328 )     (1,573 )     (2,277 )     (2,926 )     (3,460 )
Total allowance for credit losses on loans and leases   (36,546 )     (39,163 )     (47,562 )     (53,709 )     (56,428 )
Net portfolio loans and leases   3,581,369       3,578,248       3,585,673       3,574,702       3,620,256  
Premises and equipment   51,525       54,178       55,510       56,662       60,369  
Operating lease right-of-use assets   33,140       33,759       33,848       34,601       38,536  
Accrued interest receivable   12,872       13,519       15,058       15,440       16,609  
Mortgage servicing rights   2,057       2,173       2,493       2,626       2,881  
Bank owned life insurance   61,263       60,993       60,721       60,393       60,072  
Federal Home Loan Bank ("FHLB") stock   7,212       4,332       5,986       12,666       4,506  
Goodwill   184,012       184,012       184,012       184,012       184,012  
Intangible assets   13,056       13,891       14,726       15,564       16,433  
Other investments   18,300       18,206       17,811       17,742       17,129  
Other assets   188,797       131,301       126,183       156,955       179,600  
   Total assets $ 4,879,079     $ 4,958,700     $ 4,914,508     $ 5,432,022     $ 5,046,939  
                   
Liabilities                  
Deposits                  
Noninterest-bearing $ 1,443,661     $ 1,468,643     $ 1,364,716     $ 1,401,843     $ 1,230,391  
Interest-bearing   2,371,871       2,491,102       2,537,534       2,974,411       2,783,188  
Total deposits   3,815,532       3,959,745       3,902,250       4,376,254       4,013,579  
Short-term borrowings   96,965       21,553       60,027       72,161       23,456  
Long-term FHLB advances   25,000       39,976       39,941       39,906       44,872  
Subordinated notes   99,017       98,973       98,928       98,883       98,839  
Jr. subordinated debentures   22,079       22,030       21,983       21,935       21,889  
Operating lease liabilities   38,719       39,400       39,543       40,284       42,895  
Accrued interest payable   5,018       5,393       6,358       6,277       7,984  
Other liabilities   121,994       127,618       122,382       154,000       180,808  
   Total liabilities   4,224,324       4,314,688       4,291,412       4,809,700       4,434,322  
                   
Shareholders' equity                  
Common stock   24,749       24,715       24,715       24,714       24,710  
Paid-in capital in excess of par value   383,401       382,655       382,202       381,653       380,770  
Less: common stock held in treasury, at cost   (92,294 )     (91,825 )     (91,774 )     (89,164 )     (89,100 )
Accumulated other comprehensive income, net of tax   2,545       4,798       154       8,948       10,139  
Retained earnings   337,259       324,450       308,569       296,941       286,865  
Total Bryn Mawr Bank Corporation shareholders' equity   655,660       644,793       623,866       623,092       613,384  
Noncontrolling interest   (905 )     (781 )     (770 )     (770 )     (767 )
Total shareholders' equity   654,755       644,012       623,096       622,322       612,617  
   Total liabilities and shareholders' equity $ 4,879,079     $ 4,958,700     $ 4,914,508     $ 5,432,022     $ 5,046,939  
                                       



Bryn Mawr Bank Corporation
Supplemental Balance Sheet Information (unaudited)
(dollars in thousands)
 
  Portfolio Loans and Leases as of
  September 30,
2021
  June 30,
2021
  March 31,
2021
  December 31,
2020
  September 30,
2020
Commercial real estate - nonowner-occupied $ 1,464,534     $ 1,419,626     $ 1,408,240     $ 1,435,575     $ 1,382,757  
Commercial real estate - owner-occupied   537,488       553,464       578,747       578,509       568,219  
Home equity lines of credit   146,752       151,692       157,418       169,337       179,125  
Residential mortgage - 1st liens   559,946       579,657       602,584       621,369       660,923  
Residential mortgage - junior liens   24,424       25,534       27,400       23,795       26,150  
Construction   235,418       204,358       187,472       161,308       186,415  
Total real estate loans   2,968,562       2,934,331       2,961,861       2,989,893       3,003,589  
Commercial & Industrial   467,979       498,097       486,824       446,438       465,315  
Consumer   46,428       44,814       39,226       39,683       47,043  
Leases   134,946       140,169       145,324       152,397       160,737  
Total non-real estate loans and leases   649,353       683,080       671,374       638,518       673,095  
Total portfolio loans and leases $ 3,617,915     $ 3,617,411     $ 3,633,235     $ 3,628,411     $ 3,676,684  
                   
                   
  Nonperforming Loans and Leases as of
  September 30,
2021
  June 30,
2021
  March 31,
2021
  December 31,
2020
  September 30,
2020
Commercial real estate - nonowner-occupied $ -     $ 396     $ 56     $ 57     $ 849  
Commercial real estate - owner-occupied   559       1,057       1,355       1,659       3,597  
Home equity lines of credit   912       945       532       729       890  
Residential mortgage - 1st liens   3,035       4,072       645       99       862  
Residential mortgage - junior liens   64       181       184       85       50  
Construction   216       216       -       -       -  
Total nonperforming real estate loans   4,786       6,867       2,772       2,629       6,248  
Commercial & Industrial   2,708       3,049       1,490       1,775       1,784  
Consumer   31       24       40       30       31  
Leases   522       725       895       872       534  
Total nonperforming non-real estate loans and leases   3,261       3,798       2,425       2,677       2,349  
Total nonperforming portfolio loans and leases $ 8,047     $ 10,665     $ 5,197     $ 5,306     $ 8,597  
                   
                   
  Net Loan and Lease Charge-Offs (Recoveries) for the Three Months Ended
  September 30,
2021
  June 30,
2021
  March 31,
2021
  December 31,
2020
  September 30,
2020
Commercial real estate - nonowner-occupied $ -     $ -     $ -     $ 240     $ (2 )
Commercial real estate - owner-occupied   (22 )     (470 )     189       382       494  
Home equity lines of credit   -       46       -       -       -  
Residential mortgage - 1st liens   (1 )     23       1       -       (13 )
Residential mortgage - junior liens   -       -       -       -       -  
Construction   (1 )     115       (1 )     (1 )     (1 )
Total net charge-offs of real estate loans   (24 )     (286 )     189       621       478  
Commercial & Industrial   (337 )     2,323       (54 )     897       1,522  
Consumer   87       145       107       409       134  
Leases   134       209       400       413       53  
Total net charge-offs of non-real estate loans and leases   (116 )     2,677       453       1,719       1,709  
Total net charge-offs $ (140 )   $ 2,391     $ 642     $ 2,340     $ 2,187  
                                       



Bryn Mawr Bank Corporation
Supplemental Balance Sheet Information (unaudited)
(dollars in thousands)
                   
  Investment Securities Available for Sale, at Fair Value
  September 30,
2021
  June 30,
2021
  March 31,
2021
  December 31,
2020
  September 30,
2020
U.S. Treasury securities $ 100     $ 100     $ 100     $ 500,100     $ 100  
Obligations of the U.S. Government and agencies   96,597       116,701       110,413       93,098       90,928  
State & political subdivisions - tax-free   -       2,168       2,168       2,171       3,178  
Mortgage-backed securities   439,182       482,585       497,328       453,857       431,822  
Collateralized mortgage obligations   13,566       15,145       17,073       19,263       22,253  
Collateralized loan obligations   94,651       99,635       99,666       94,404       6,500  
Corporate bonds   11,755       11,754       11,576       11,421       9,343  
Other debt securities   650       650       650       650       650  
Total investment securities available for sale, at fair value $ 656,501     $ 728,738     $ 738,974     $ 1,174,964     $ 564,774  
                   
                   
  Unrealized Gain (Loss) on Investment Securities Available for Sale
  September 30,
2021
  June 30,
2021
  March 31,
2021
  December 31,
2020
  September 30,
2020
U.S. Treasury securities $ -     $ -     $ -     $ 5     $ -  
Obligations of the U.S. Government and agencies   (1,347 )     (842 )     (2,597 )     649       995  
State & political subdivisions - tax-free   -       12       16       22       27  
Mortgage-backed securities   7,322       8,432       8,957       12,282       12,901  
Collateralized mortgage obligations   374       458       522       583       662  
Collateralized loan obligations   151       120       151       (96 )     -  
Corporate bonds   755       754       576       421       343  
Total unrealized gains on investment securities available for sale $ 7,255     $ 8,934     $ 7,625     $ 13,866     $ 14,928  
                   
                   
  Deposits
  September 30,
2021
  June 30,
2021
  March 31,
2021
  December 31,
2020
  September 30,
2020
Interest-bearing deposits:                  
Interest-bearing demand $ 681,560     $ 668,664     $ 671,854     $ 885,802     $ 815,561  
Money market   1,121,155       1,183,252       1,201,115       1,163,620       1,199,429  
Savings   284,875       289,108       286,124       282,406       245,167  
Retail time deposits   238,597       270,926       301,702       331,527       366,245  
Wholesale non-maturity deposits   39,538       73,011       70,605       275,011       77,356  
Wholesale time deposits   6,146       6,141       6,134       36,045       79,430  
Total interest-bearing deposits   2,371,871       2,491,102       2,537,534       2,974,411       2,783,188  
Noninterest-bearing deposits   1,443,661       1,468,643       1,364,716       1,401,843       1,230,391  
   Total deposits $ 3,815,532     $ 3,959,745     $ 3,902,250     $ 4,376,254     $ 4,013,579  
                                       



Bryn Mawr Bank Corporation
Detailed Income Statements (unaudited)
(dollars in thousands, except per share data)
                           
  For the Three Months Ended   For the Nine Months Ended
  September 30,
2021
  June 30,
2021
  March 31,
2021
  December 31,
2020
  September 30,
2020
  September 30,
2021
  September 30,
2020
Interest income:                          
Interest and fees on loans and leases $ 34,332     $ 34,638     $ 34,578     $ 35,632     $ 36,799     $ 103,548     $ 120,284  
Interest on cash and cash equivalents   20       16       22       62       85       58       233  
Interest on investment securities   2,752       2,996       3,050       2,717       2,658       8,798       8,753  
Total interest income   37,104       37,650       37,650       38,411       39,542       112,404       129,270  
Interest expense:                          
Interest on deposits   808       958       1,424       1,891       2,967       3,190       15,080  
Interest on short-term borrowings   16       5       10       9       8       31       693  
Interest on FHLB advances   173       205       203       226       234       581       633  
Interest on jr. subordinated debentures   198       199       198       205       207       595       731  
Interest on subordinated notes   1,022       1,044       1,034       1,043       1,094       3,100       3,383  
Total interest expense   2,217       2,411       2,869       3,374       4,510       7,497       20,520  
Net interest income   34,887       35,239       34,781       35,037       35,032       104,907       108,750  
(Recovery of) provision for credit losses ("PCL")   (3,186 )     (6,581 )     (5,246 )     (1,209 )     4,101       (15,013 )     42,886  
Net interest income after PCL   38,073       41,820       40,027       36,246       30,931       119,920       65,864  
Noninterest income:                          
Fees for wealth management services   13,618       14,031       12,836       12,588       11,707       40,485       31,944  
Insurance commissions   1,524       1,249       1,464       1,393       1,682       4,237       4,518  
Capital markets revenue   2,823       1,290       1,596       841       3,314       5,709       8,650  
Service charges on deposits   751       733       696       756       663       2,180       2,112  
Loan servicing and other fees   327       397       304       360       373       1,028       1,286  
Net gain on sale of loans   671       525       250       842       1,021       1,446       4,937  
Net gain on sale of investment securities available for sale   512       -       -       -       -       512       -  
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   202       239       222       337       127       663       814  
Other operating income   2,159       2,502       2,467       2,592       2,212       7,128       5,556  
Total noninterest income   22,587       20,966       19,841       22,006       21,099       63,394       59,965  
Noninterest expense:                          
Salaries and wages   16,751       16,700       16,830       17,730       17,201       50,281       51,116  
Employee benefits   3,150       3,224       3,687       2,858       3,026       10,061       9,747  
Occupancy and bank premises   2,514       2,629       2,892       3,624       3,055       8,035       9,103  
Furniture, fixtures and equipment   2,624       2,188       2,242       2,400       2,481       7,054       7,032  
Impairment of long-lived assets   -       -       -       1,605       -       -       -  
Advertising   265       413       176       554       458       854       1,055  
Amortization of intangible assets   835       835       838       869       870       2,508       2,698  
Due diligence, merger-related and merger integration expenses   18       266       1,646       -       -       1,930       -  
Professional fees   2,423       1,629       1,433       1,767       1,718       5,485       4,661  
Pennsylvania bank shares tax   538       718       749       (339 )     115       2,005       347  
Data processing   1,421       1,444       1,404       1,501       1,403       4,269       4,276  
Other operating expenses   6,301       5,421       5,806       6,055       4,870       17,528       14,068  
Total noninterest expense   36,840       35,467       37,703       38,624       35,197       110,010       104,103  
Income before income taxes   23,820       27,319       22,165       19,628       16,833       73,304       21,726  
Income tax expense   5,562       5,988       5,082       4,094       3,709       16,632       4,762  
Net income $ 18,258     $ 21,331     $ 17,083     $ 15,534     $ 13,124     $ 56,672     $ 16,964  
Net (loss) attributable to noncontrolling interest   (124 )     (11 )     -       (3 )     (40 )     (135 )     (72 )
Net income attributable to Bryn Mawr Bank Corporation $ 18,382     $ 21,342     $ 17,083     $ 15,537     $ 13,164     $ 56,807     $ 17,036  
                           
Per share data:                          
Weighted average shares outstanding   19,891,618       19,878,981       19,907,873       19,958,567       19,945,634       19,892,764       19,975,069  
Dilutive common shares   170,400       171,838       142,863       69,091       75,983       163,651       87,039  
Weighted average diluted shares   20,062,018       20,050,819       20,050,736       20,027,658       20,021,617       20,056,415       20,062,108  
Basic earnings per common share $ 0.92     $ 1.07     $ 0.86     $ 0.78     $ 0.66     $ 2.86     $ 0.85  
Diluted earnings per common share $ 0.92     $ 1.06     $ 0.85     $ 0.78     $ 0.66     $ 2.83     $ 0.85  
Dividends paid or accrued per common share $ 0.28     $ 0.27     $ 0.27     $ 0.27     $ 0.27     $ 0.82     $ 0.79  
Effective tax rate   23.35 %     21.92 %     22.93 %     20.86 %     22.03 %     22.69 %     21.92 %
                                                       


Bryn Mawr Bank Corporation
Tax-Equivalent Net Interest Margin (unaudited)
(dollars in thousands)
                                               
    For the Three Months Ended   For the Nine Months Ended
    September 30, 2021 June 30, 2021 March 31, 2021 December 31, 2020 September 30, 2020   September 30, 2021 September 30, 2020
    Average Balance Interest Income/ Expense Average Rates Earned/ Paid Average Balance Interest Income/ Expense Average Rates Earned/ Paid Average Balance Interest Income/ Expense Average Rates Earned/ Paid Average Balance Interest Income/ Expense Average Rates Earned/ Paid Average Balance Interest Income/ Expense Average Rates Earned/ Paid   Average Balance Interest Income/ Expense Average Rates Earned/ Paid Average Balance Interest Income/ Expense Average Rates Earned/ Paid
                                               
Assets:                                              
Interest-bearing deposits with other banks   $ 67,665   $ 20   0.12 % $ 86,383   $ 16   0.07 % $ 110,972   $ 22   0.08 % $ 245,904   $ 62   0.10 % $ 336,225   $ 85   0.10 %   $ 88,181   $ 58   0.09 % $ 194,652   $ 233   0.16 %
Investment securities - available for sale:                                              
Taxable     692,821     2,670   1.53 %   742,212     2,915   1.58 %   735,508     2,947   1.62 %   675,642     2,561   1.51 %   550,199     2,562   1.85 %     723,357     8,532   1.58 %   527,837     8,402   2.13 %
Tax-exempt     1,109     8   2.86 %   2,168     14   2.59 %   2,170     14   2.62 %   2,490     16   2.56 %   3,690     23   2.48 %     1,812     36   2.66 %   4,388     77   2.34 %
Total investment securities - available for sale     693,930     2,678   1.53 %   744,380     2,929   1.58 %   737,678     2,961   1.63 %   678,132     2,577   1.51 %   553,889     2,585   1.86 %     725,169     8,568   1.58 %   532,225     8,479   2.13 %
                                               
Investment securities  - held to maturity     12,179     54   1.76 %   13,414     49   1.47 %   14,329     73   2.07 %   15,093     57   1.50 %   12,248     57   1.85 %     13,300     176   1.77 %   12,854     217   2.26 %
Investment securities  - trading     8,262     21   1.01 %   8,780     21   0.96 %   8,618     19   0.89 %   8,033     86   4.26 %   7,957     21   1.05 %     8,552     61   0.95 %   8,095     70   1.16 %
                                               
Loans and leases *     3,617,866     34,423   3.77 %   3,611,479     34,730   3.86 %   3,607,214     34,674   3.90 %   3,657,572     35,734   3.89 %   3,701,495     36,901   3.97 %     3,612,225     103,827   3.84 %   3,792,969     120,578   4.25 %