Bryn Mawr Bank — Investor Presentation (September 2020)
17 slides from Bryn Mawr Bank's investor presentation, Sep 21, 2020
Slide 1: September 2020 Investor Presentation
September 2020 Frank Leto Mike Harrington Liam Brickley President and Chief Financial Officer Chief Credit Officer Chief Executive Officer All data is as or for the three months ended of June 30, 2020 unless otherwise noted
Slide 2: Forward Looking Statement
Forward Looking Statement This presentation 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-lo
Slide 3: Second Quarter 2020 Recap
Second Quarter 2020 Recap ➢ Reported net income of $15 million, or $0.75 diluted earnings per share ➢ Sold substantially all of Paycheck Protection Program (“PPP”) loan portfolio, generating a $2.4 million gain on sale ➢ Announced intended exit of approximately 33,000 square feet of owned and leased
Slide 4: Digital Strategy
Digital Strategy AGILITY LOYALTY EFFICIENCY Latest Features Economies CLOUD Mobile Native of Elasticity FOUNDATIONS Scale High Performance Easy Consistent DIGITAL repeatable Pivot on demand INTEGRATION Simple processes PLATFORM Fast & controls Actionable Measurable Repeatable INSIGHT & Advice Outcom
Slide 5: Digital Change
Digital Change nCino Deposit Account Openings ➢ Deposit applications increased 300% from 600 March through April, partially related to 500 PPP loan originations 400 300 ➢ Digital transactions increased over 25% 200 during same time period 100 ➢ Digitation of processes (using e-signature) 0 Jan-20 Fe
Slide 6: 2nd Quarter 2020 Results
2nd Quarter 2020 Results Income Statement 2Q20 1Q20 % Change $ in thousands, except share and per share data Net interest income $37,385 $36,333 3% Provision for credit losses on loans & leases 4,302 32,335 -87% Net interest income after provision 33,083 3,998 727% Noninterest income 20,566 18,300 1
Slide 7: Balance Sheet - Liquidity - Capital
Balance Sheet - Liquidity - Capital Balance Sheet ($ millions) 2Q 2020 Assets 2Q20 1Q20 ▪ Loan portfolio decreased 1.2% Q over Q Assets ▪ Increase to the allowance driven by the current and Total Assets $5,271 $4,923 forward-looking adverse economic impacts of the Total Portfolio Loans & Leases 3,72
Slide 8: Asset Quality
Asset Quality Net Charge-Offs ($000) 1.00% $4,500 $4,073 Charge-Offs $3,398 • Net charge-offs decreased $675 thousand from $3,000 the first quarter 2020 0.50% $1,324 • Net charge-offs as a percent of average loans $1,500 $1,061 0.44% 0.35% and leases decreased 9 basis points Q over Q $400 0.12% 0.15
Slide 9: Allowance for Credit Losses on Loans and Leases
Allowance for Credit Losses on Loans and Lease “ACL” December 31, 2019 January 1, 2020 March 31, 2020 June 30, 2020 $ thousands Incurred Loss Method CECL Adoption CECL CECL % of % of % of % of Portfolio Loan Segment Amount Segment Amount Segment Amount Segment Amount Segment Commercial & Industrial
Slide 10: Loan Portfolio Segments
Loan Portfolio Segments Leases, 5% Other, 1% HELOCs, 5% Construction, 6% CRE - Nonowner Occupied, 37% C&I, 12% CRE - Owner- Occupied, 14% Residential Mortgages, 20% CRE - Nonowner Occupied (37%) Leasing Portfolio (5%) Primarily commercial mortgage loans with 90% Pass- ➢ Located in all 50 states and
Slide 11: Specialized Sector Exposures
Specialized Sector Exposures Commercial Real Estate-Sector ($000) Size % of Total Loans Avg. Loan Size Avg. LTV Retail $344,152 9.1% $1,687 61.9% Multifamily 286,668 7.6% 1,291 66.1% Mixed Use/Flex 240,334 6.4% 1,161 63.5% Office 218,414 5.8% 1,761 68.2% Hospitality 91,932 2.4% 3,283 62.5% CRE Secto
Slide 12: Deferral & Classified/Criticized Loan Summary
Deferral & Classified/Criticized Loan Summary % in Deferral as of % in Deferral as of Loan Category June 30, 2020 August 31, 2020 Commercial & Industrial 17% 7% Construction 10% 4% Consumer 1% 0% CRE - Nonowner-Occupied 28% 13% CRE - Owner-Occupied 29% 10% HELOC 3% 2% Residential 16% 6% Leases 13% 8
Slide 13: COVID-19 Deferrals – All Loan Types
COVID-19 Deferrals – All Loan Types $800 20.5% 18.8% 19.0% 20.0% $600 15.0% $400 9.5% 10.0% $ millions $ 8.3% Percentage of Portfolio of Percentage 5.6% 4.6% $200 5.0% 1.8% 0.8% 0.0% 0.0% 0.3% 0.0% 0.0% $0 0.0% Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-2
Slide 14: COVID-19 Deferrals – All Loan Types
COVID-19 Deferrals – All Loan Types $800 20.5% 19.0% 20.0% 18.8% Peak $: $765.1 million Peak %: 20.5% Peak month: June 2020 Deferred 8/31: $350.5 million Deferred % 8/31: 9.5% Active Deferrals $600 15.0% % of Segment Deferred $400 1st Deferrals 9.5% 10.0% $ millions $ 8.3% Percentage of Portfolio of
Slide 15: COVID-19 Deferrals – Nonowner-Occupied CRE
COVID-19 Deferrals – Nonowner-Occupied CRE 30.0% 27.7% 26.3% $400 25.8% $300 20.0% 13.4% $ millions $ $200 11.8% 9.5% 10.0% Portfolio of Percentage $100 5.6% 2.3% 1.3%0.8% 0.0% 0.0% 0.0% 0.0% $0 0.0% Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 No
Slide 16: Non-GAAP Reconciliation
Non-GAAP Reconciliation As of or For the Three Months Ended $ thousands June 30, 2020 March 31, 2020 Reconciliation of Net Income to Net Income (core): Net income (loss) attributable to BMBC (a GAAP measure) $ 15,035 $ (11,163) Less: Tax-effected non-core noninterest income: Gain on sale of PPP loan
Slide 17: Non-GAAP Reconciliation
Non-GAAP Reconciliation As of or For the Three Months Ended $ thousands June 30, 2020 March 31, 2020 Calculation of Efficiency Ratio: Noninterest expense $ 34,636 $ 36,418 Less: certain noninterest expense items*: Amortization of intangibles (910) (918) BMT Investment Advisers, Inc. wind-down costs
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