BMTC - Earnings call transcript Q2 2020

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning and welcome to the Bryn Mawr Bank Corporation Second Quarter 2020 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Mr. Officer. Financial Chief Harrington, Mike Please go ahead.

Mike Harrington

presentation. and Thank website today. most at for documents and us bmt.com in Relations everyone hope you, recent available you section. our release our [Ivey] I review had joining to these Investor thanks a on of Both the earnings are chance

to referring the conference be during will this call. We presentation

Officer. On and Liam CEO the President Leto, and call with Frank me Chief today Credit are Brickley,

forward-looking current statements we the please make call, advised a management historical regarding during Corporation speak on discussed All that and disclaimer forward-looking this statements date beliefs only and forward-looking to conference are as statements of management's undertake begin, time not Safe our this which forward-looking statements. facts. for The and presentation Harbor Before be more statement. made. what and they are the assumptions call constitutes forward-looking refer based update not in during to may and does on Please are release information earnings labeled based

website. to discussion more over and are you would Frank. uncertainties and to related our a assumptions, on risks, like call of business, For to located our Commission with now the our review Exchange turn filings Securities the encouraged the I to complete

Frank Leto

how than in every but The Mike. I one has faced in of most Thanks an perspective redefined am is organization the proud. joining new our last organization years of ever this one And have our business We normal. change more you months our profoundly challenging to environment of current all our resilience of several operates. which to been thank has lives adapting earnings our have I'd in our for like XXX The call today. facet to while all

new to each to we am our I confident the that brings Our overcome team's challenges rise ability day and to obstacles employees continue face.

successful and are and those results become has of sustainable current to more the investments hallmarks our company. the people, the evident the investing in of in We and processes in This [further] believe technology continue environment operating QX.

of results team. Our signs and are nimbler recent from skills, the our responses resiliency

the of per $XX of income earnings $X.XX diluted share. our second During million quarter net or

of as release an quarter on example of our in funded to and of After part included $XXX source. second the detailed PPP the same XX, along ability in the loans interest million. portfolio sale almost review quickly the loan totaling in early and with the items XXXX. Starting and thoughtful best X-K our organization was quarter. June was the earnings of notable originated decided several our filed to we quarter to approximately this move portfolio clients we Second XXXX in consideration the One sell

which the income and While were we constantly manage servicing the generated addition $X.X decision internally. through of risk portfolio. determined non-interest margin. sell activity outweighed be the forgiveness and the PPP our managing the sale further of parameters to to In associated benefits and this program evolving to that process opinion million, forgiveness operational fee with together We the in portfolio the with of if the investments to the in-house we service led our loan would accreted the income required the

optimizing efficiency. for also our footprint We disclosed plans estate and operational real

serve accelerated important the our our this environment. strategy and services deliver been provided remote efficiently stage our staffing cases With our in serve information this ability for better a For and planning our of pandemic office space in on and modified about front facility we real-time model to some effectively. with these both clients year Near intent back working operating a end the hit changes, has and to and BMT well optimizing comprehensive than more staffing to of more structure the a clients information and our new a to strategy.

both office year. we of disclosed leased acts square owned XX,XXX expect completed this to previously approximately feet at As plan which and the of be we by space end to

consistent use to focus lately. of and positions. on with identify make deficiencies the these in did enterprise which processes XX resulted we our eliminate and We not technology, better decision wide decisions Additionally

However, we the to and stronger future. firmly make better believe BMT positioned for

was reduction second liquidation two the in mutual expense advisors. BMT Finally, we investment mutual insured liquidated cost cap to the no was fund, of advisor will BMT fund little unwound form the the services this management fund provide related that the recouped investment multi longer quarter. over entity This The established the to years. The was of required. to million be a of action $X.X in

of and navigate and to the offer. ensure BMT all communities live We employees we resources and the we're safe current and we hard make. aware to they access all has customers, our every services decision have world close we to mindful our are need the to keep work every stakeholders to day While

in in investments of deposit the account consistent the this automation strategic to of of the environment. continue we've this by An that needs We investment no with our customers is was experience partnering here Part framework doubt, them example adapt by we the services our success, and made with in openings. of digital help improving solutions depicted the ensuring technology. nCino our dynamic offer to attributable our

usage banking from depicted to through account as the the business another enabled today objective our which over on Well, new This we while applications cost thirds adapt online significant increased taking our able slide home. cultural which with depicted operational working resources leverage the natural work saw place might were months. is technology capabilities the by the [sceners] reducing operate the reducing page reduction effectively fourth our and fronts and Mawr our experience transformation paper openings our in fact in been dropped we ESP risk. increase to where March deposit This elevated last this too not in in our part XXX% opening solution at corporate forward Also our we we've further of statistics the As advancements XXXX. our account nCino two remained quarter adopt to and environment. and as by platform multiple use levels our of the it's our paper example employees and usage just Also deployed systems of saving that broader related from footprint and efficient is May. increased automate to moving be operating reduce three customer of mobile April Bryn material, at and depicted usage on These processes our continued cloud; environment the more of transition percentage are processes of this all to getting to improving we to by XX%. having is help strategy the as in

I that our some I'd Finally With this consecutive XXX is very to Mike? to dividend. of quarter approved like that proud results. our Board share our quarterly ask of per am a discuss second $X.XX Directors dividend. now Mike

Mike Harrington

you, Frank. Thank

diluted as the of sale quarter included income and $X.XX per provision $X.XX solid posted income to net was income capital On $XX wealth as quarter result share. $XX.X a teams. quarter per PPP we in length drivers For compared fee the the was basis strong The solid well markets lower control. XXXX GAAP loan diluted main million results of second the share. as a from Also a for the or expense million net our or driving results core

Net staff Our gain severance reduction. costs wind-down during associated the the X.X% PPP the income the and the second core excludes [BMT] with net increased first from loans, interest quarter sale on investment quarter. advisors income

and tax net were main throughout from leases a lower decreased the to declined, the on The X.XX% margin methodical decreased pricing increase an While loan in to quarter. expense saw held as XX%. and X.XX% to interest deposits interest loan quarter-over-quarter. on income interest in decrease The cash deposit included the a approach loans decline yields contributors related over equivalent yields

With the our remain The margin. quarter provision the expected of required is which the to of end the provision peak This sale $X.X quarter million. for timing to position unemployment. pressure to second substantially account related the the net loans near to PPP put and on change as likely estimates was the in was a is for interest of additional to so our the higher is cash of term

and our was tax fees As and earned quarter. the economic non-interest our to costs capital a extreme deadline reductions. uncertainty quarters. quarter typically detailed that earnings be the related the follow our increased quantitative PPP our in delayed continue the reflected with uncertain excludes our the sale volatility segments of third the change cause down to to may of a given I due non-interest had amortization income from non-interest from and and lower and methodology release to second of model ratio. of this CECL CECL fees last Adjusted losses these as BMT wind-down also the operate or in uncertain sizable excluded unemployment also substantial is $X.X associated quarter. revenue Non-interest on provision for on the in will of filing expectations the quarter expense path. note our the cycle we items severance tax were future through in earn XX% discussed of last service investment expenses had Compared The economic wealth quarter portion this the while call, first to in Such million quarter. qualitative wealth likely would we key our second environment driver in unemployment page advisors recognition impact certain as removes include factors adjusted items. extension increase, intangibles, efficiency the expense provision pertaining Further, will quarter-over-quarter, an staff the good possibility and the market to earnings the

of approximately have As The of the of feet reviewing earlier will we cost pre-tax recurring square million. aspects benefit space all $X occur spent year end expected office annual mentioned XX,XXX by business. the of time have considerable exit Frank to

$X.X Regarding the positions to estimate annual the elimination benefit of pre-tax be million. earlier we recurring noted

These to execute are in improve include the realization further post-COVID expected opportunities realized of be associated decreases are strategy to efficiencies of as we as cost plan. opportunity Additional a our a as occupancy in our to likely well technology world. with areas efficiencies

deposit in in over prior lowered from environment. growing our interest X.XX% the increase from in the inflates the and in quarter, holdings One bearing to cash deposits vigilant quarter. of current our is cost robust growth to we XX% We the leveraging X.XX% believe the this deposits liquidity market essential that second in maintaining client behavior pricing and to quarter remain the first

may be remains well company elevated cash above the are well liquidity deemed to short earlier bank to excess at as Capital levels corporation in the the limited. noted capitalized. withholding be our both As opportunities invest the holdings term and needed

enter this has position company our ample as the at Consistent second capital various believe half the idea leveraging varying our our noted and support as of We to stressing capital source levels and we our external a of related and degrees have feelings capital of The internal to under loss resources. company bank severity outcomes we strength scenarios dividend time position possible both a are holding these modestly have well-positioned the and under we We earlier. pay increased liquidity spent dividends. the considerable and with effort both resulting good as year. future of

first of update credit to note loans you'll the the downturn. falling depicts transition losses net CECL economic lower in the the from stable charge-offs downturn from by was slide the followed quarter. following was an noticeably of XXXX approximately model incurred which is until quarter increasing the due Change the quality fairly with on implementation credit Provision January previous end leases X on quarter. the prior quarter the Slide during quarter for asset CECL impact on the first second allowance the is dramatic. our and As for economic to The of the from to modestly quarter loss quarter second first the allowance less $XXX,XXX. the up from X, from losses X,

loan additional commentary now call over the Liam who the Officer bank's will Brickley portfolio. Chief on will provide our We to Credit turn

Liam Brickley

Thanks, Mike.

change first the from remains indicated portfolio XX, As borrower across did and property types. on not diversified and significantly slide our quarter

more susceptible We working are current considerable are the borrowers who spending alongside time our to environment. those specifically

time quarter with a estate are declining experienced At overall commercial this an pre-non-owner-occupied our of of comprises a end the been in of which our second deferral. portion We the portfolio. portfolio has deferral bulk that that category real is was initial to plan August. of the significant XX% amount in out come expected Since its lender gradually

for extended portion a may However, election, our these be depending on loan deferrals additional XX at an circumstances of and days.

As leasing this economy. the our in downturns quarter first mentioned more earnings is to call during portfolio vulnerable

in on lease this date approach average nearly exposure. deferral. coming conservative We in is which of this Approximately provision resume portfolio portfolio the as The X% these we the is XX% have is lease remained week. evident payment loans for total

As commercial of metrics real can of slide the XX, estate see these segments we we have a transition our The materially analysis to not changed detailed underlying quarter. more first portfolio. from

adjustments to have loan ratings. to in total rate This market current Again, data action conditions. We and of we're our prudent apparent this substandard. loan according sector taking hospitality underlying the with is conservative a methodology. made XX% along several and However, risk we believe fundamentals our is rated each our internal most in where loans are market the approach we

a in we taking conservative up hold will we the are them. current view now these While environment we how approach portfolios and believe well

million. we schedule around XX, and year-to-date. decreased total at of On last credit deferrals been program. portfolio deferral customer the by second of of outlined $XX the XX% slide of end our the lines worth XX% first have segment. was credit over of a quarter end quarter trends Our approximately the usage usage of quarter At loan a detailed Since the the positive line actually

these term. Over the their gradually past this many that will this as few declining weeks loans anticipate initial we of seen have deferral continue XX-day of out come percentage and

included quarter on slide our factors. information previously release of second as trend we may and criticized periods depicts underlying as chart to some clients select for the it on classified extend However, deferral new pertains at earnings the this bonds. A mentioned we data discretion In based certain XX.

team's continue We of the frequent is we address the in taking portfolio. address primarily approach the With in proactive is thorough this several conduct that entire concerns are accordingly. issues to it have that analysis in volatility hospitality believe and ability downgrades credits quarter-over-quarter. will to but believe warrants back confident in our Frank. for our time current increase persist As of reviews environment We some turn portfolio we'll which we the to our evident initiated vital a to sharp

Frank Leto

At Operator in call point if Thanks questions questions. up we'll have and Liam Mike. thanks queue? open to you the the this any

Operator

now from will question-and-answer Sandler. We the comes Instructions] Whitman [Operator Our first question Piper begin Casey session. today with

Casey Whitman

Good morning.

Frank Leto

Casey. Good morning,

Casey Whitman

expense discussed. to expect expect initiatives I'd impact Can you just with guess elsewhere? the to start or incremental I all morning. Good the to line reinvest do right bottom we said you the the flow

Frank Leto

one. Mike jump you let me start and then can right in on this

Mike Harrington

Yes.

Frank Leto

obviously don't have we're the we're I Mawr] continuously dollars use and this earmarked time. Casey, in to [Bryn at we in savings the that point specific enterprise. of know that investing going

think later of bottom about that worried most I investing drop I money our to some on and but think for it will quarter. line of we've never payoff the today evidence the you understand in see this

process investments years, few investments personnel the in years Our technology our few our and paid off. our over investments last the have improvement last over in our in really

that don't helps? So add want to to I know something that you Mike,

Mike Harrington

Yes.

the until won't immediate happen end benefit that should executed the from since from immediate made that XXXX. investment we wind this see year. won't real of of changes advisor. estate the The staffing estate impact Just and real be until impact timing the the down We

Casey Whitman

it. Got Thank you.

Mike Harrington

it, okay. Got

Casey Whitman

Yes.

information quarter of primarily then which almost book Thanks. that maybe was say you let the it on it book. chains to book safe to is the deferral you would hospitality all bit that at as on us color least? Liam me more located? Is to hotel at end be market give to majority on and that all fine. Is hospitality Okay, can and just a turn little where hotels some

Liam Brickley

Yes.

cash These some exposure it in was having modest bulk we're next on exposure primary to a who of have recourse by of the of exposure XXX% sector. properties. exposure are this lender Maryland. next the QX majority of a beginning hotels It's have deferrals New that their response positive the trade decision of the conversations area; to flagged was week southeast see are hospitality ratings supported historically until to week, majority Pennsylvania, flow our and city [indiscernible] The movement. this recovery Jersey, on and and in strictly we just, in declining appropriate. the a rates and impact rapidly like we We vast deferral downgrade all what supported we the such The to round think are occupancy Delaware are literally sponsors have time and visibility sustained of vast so looks as is a COVID those

Casey Whitman

Got it. Thank you.

Frank Leto

which can comments first. I the thing will happened of building one say just Casey, I the Liam's reserve add that one? is CECL to Casey,

if there's classified seen at build with like the some or time the these all this loans with too same So sequenced you that coincided have timing based current appropriately we're the downgraded conditions allowance. have on would would dealing would have here the become of

So follows. that why assets has in and categories allowance allowance into migration this been which That's then reflected these and the built. the building allowance happened itself. natural There's of is first a

So we view very as consistent. being these two things

Casey Whitman

Understood. Thank you.

Operator

Our next with KBW. Michael question comes from Perito

Michael Perito

good guys. my questions. taking for Hey, morning, Thanks

Frank Leto

morning, Mike. Good

Michael Perito

wind-down Good for reduction. just kind wanted really clarify to Can the savings guys FT annual the the morning. office and the that just figures? $X.X million the of those quickly just expected you all repeat -- and savings I targeted from expense I the Can from repeat on just the just. dollars the million heard confirm BMT you advisor are

Frank Leto

is Right. That about yes annual targeted million advisor later another and the change. savings investment

again now quarter like back the about and in period. years. this There's two the staff. that that's that'll earn And we're So begin in

Michael Perito

And reductions? the FT

Frank Leto

Yes.

Michael Perito

But guess after step these the loans to deferral? then states the on comment reserve these migrate natural the just about on it ability natural the chose your guys not of bill had correct? you like where side, are mean credit mostly these And viewing right to trying what kind uncertainty now? as on yet, loans you at of the given I I loans to but it just to next the technically do Okay. course understand that how guys

Liam Brickley

That's Liam. It's correct. Yes.

just would management's revenue the individual of end but on at reviews information portfolio book we performance into at time the at borrower Mike's have our and spike in COVID of much in Your clarity loan assets more see our we prudent of to when granular that based visibility and the program internal were the a material loan those a basis early the our first with decided assumed are such it in deferral unemployment felt to was stress of the With no -- at those we the with event. rating days downgrade always we as and initiated you QX, by get delinquency until credits payments the patterns CECL trading discretion ratings of we quarter. have seen that's the is the of visibility one, as lack There conditions. again we've material current risk program. risk end we transition point the We hospitality warranted we our on change deferral no can in downgrade didn't outside payment in see

So entirely it downgrade our to option this. was

Michael Perito

some guys at will up some a have thinking case-by-case work some these on where to to a deferral at might of Okay. couple I some I kind it about do mean, are do, as when how there you renewals could I a total you point of be mean coming with it's on presumably and needed like or special guys, some about I actually actions come point these total can't be asset point And the weeks do I through in but you credits? you deferral ever you there basis businesses special action see is write-downs just how thinking review make I assumption kind point sounds challenges change and cash or guess flow of it requiring being actually guess from guys what bad but at today? one guys guess as you mention kind to of the criticized guess there

Liam Brickley

has right business level no rolls how what we make at don't end week specific know packages activity us deferral book making assessments Well know visibility various as industry the stimulus of better economic We reasonable now. packages QX, as the as is to don't out their of there point will banking given assuming and are to out into a the the again of it their a as these plays well opaque entirely and assessments time is Jamie out deferral Diamond's of have paraphrase some have The impact it's at we this other Again changes clearly to plays at models the portfolio event quote track own we'll our stressors but period in folks that our property into so an in even that all that properties. that the borrowers make last time. of we everybody unprecedented know. three more assessments say recourse to to who we next lender have over How their record if the know supported which later. time and

Michael Perito

Thanks.

Frank Leto

function okay we're in have take as we're exposure down fashion dramatic capital a is this on making we've environment whole stressed discussed got and all I see hearing a I and internally made think some that all all standpoint. in capital making both double outside there you're pretty run do thinking we to is we're run in work as the we've a taken overlays and have we we've and doing that that that's well that a was sort is that, now from the we've I’ll statement around we've Then a this I Mike of we'll and of that that then we're describing to around is have process point. qualitative done that everything there what as around happens Liam what stressed loss in assumptions management we CECL credit well. then the add made quantitative

your right appreciate thinking to just as terms now. and we that stand So in and of factor where that in corporation

Michael Perito

can. quick have and ones Yes. will if I Helpful guys you then two more I

helpful the non-interest some outlined on items you as any the what look a on AUM might outlook here? of little key what the businesses of or the just thoughts one side some expense – outlook income were on guys move expanded we forward Frank Mike but kind which Just like

Mike Harrington

Sure.

want that Frank? me You to take

Frank Leto

I anything you. yes. Mike. I Go add mean will to Well, go ahead ahead.

Mike Harrington

market of wealth as normal changes the the because mean a better in of get so the prepared the tax fees service then market are in strongly you typically fees I we are and we those very I collect the our lot perspective. if quarter look spike the a was those of usually big from with mentioned Yes. the an quarter quarters in got here pushed time rallied remarks we we wealth barring XXX AUM is out second reflected pattern to what familiar There reflect of the one third from dollars back quarter that revenue the number, a that QX. those finished

cash out net on Bryn Delaware. in business had into it's pace, Delaware rebound So to flows at grew assets legacy things high-tech Corp they Trust supporting continues rapid own, wealth income I the and market two I what which growing. business non-interest moving to those are its on the positive and our have of mean from just continues the in Delaware, a states the a the thing lot in the is, Mawr business a then positive QX [grow] the other just besides throw in

QX that's closing. the capital quarter loan really a and lot dependent is that's this on on of and So market think side is of slowest the I usually and dependent, then loan it's the function activity

closings they're we're should that to some which FX those of are that starting build trade some very with pleased expect and what capabilities should areas. loan in that in but sitting So starting where organization's two aren't if and traction offset some particular maybe finance get offset really other to we

Frank Leto

let we to down want to have that paid just the Yes, add I mean wealth just and crisis, add. I mean on then when doubled this I fruits of Mike, obviously is me dramatically. last real off back quickly

this see Jen paying investments sideways of difficult customer are little the issue is bit marketing I I prior these has, and throes she of hit I but off. involved in crisis start bit, went her you step think to to a try strategic and generally little a advantage we of the would plan is a of going this throes where the in made when generally where because we obviously banks it plan news these service the shine. really pretty And year lot just and that of That's know Jen forward speaking the to say large escape we the a think times I the market. of disruption in when is to a that's take in some final

was I second the think she involved we and that the had some of improvement also reductions very integral in process the through quarter.

she's wealth move think both insurance to well-positioned the I forward and on So the fronts.

comments spot Mike's think I about capital markets are on there.

of color. So I little just wanted to bit that add

Michael Perito

you us and guys out rolling were kind are just that quite front Thank I products the guys an know Excuse on budget you like of then cost you few a and then can is kind the it that have in Helpful. savings guys update? in to lastly, you why just give and the line. just stuff technology me. where nCino most guys a just of Frank any next thoughts on perspective? you Helpful. seems [went] which I of mean the some bottom other already what's from

items move of those curious as am forward? we are So some I what just

Frank Leto

nCino Well, the throes us. this project, project we are of it's for been multi-year a in

that. really about lucky we handle process to around the wooden we here integral knocking my origination when and able was talking all seamlessly deposit PPP piece accounts get the the completed were That desk did. over to of I we're am to While really opening how us being

Throughout completed consumer me, other of sure aspect the bit the and looks small into excuse XXXX a see we our commercial the then focus credit the of So back. this like to push it business that of of ending be and that's balance transformations fruits the had part latter the a enough small, side. by why probably we're piece year quarter on course make will back pushing that commercial that. to with the the on timing and of and first into of it really end QX, this year have the going little We lenders the is big just

So a I us. mean that is big for that's focus

Of things the lot in a have course, we always works. of

of lot a have projects. We

pretty has chief in lines really, plan detailed I our really our business technology make better technology strategic all have reacting Adam customer think very experience make We of I businesses for needs Bonanno, the think us with officer can. in a going us detailed and any conjunction for we're what's to and possibly is of Adam we really more the way going to what's to the developed, efficient,

some things major I at know major to than multi-million don't you're we we're what we on I nCino are if going like I forefront. kind getting don't are like an looking there project. we spend, mean already dollar or some have the other at. I have So think of think have any

us into out cloud really I think Adam and it there. digital to getting getting and This know to a technology is it's the us of this really this I and long focused whole digital a back it's But said transformation. and lot is bank all look like Mike in the strategic experience and XXXX. ongoing around you off on so backs our speak this started a of it's whole, followed that around pushing at plan enough

process to today technology paid really and for XXXX-XX. with us. we our and had So do it we That way but experience place one to what that's said in doing done. off technology. a not an well I That I lot it. the a to mean ongoing which do get us early allowed it's end did think to foundations a continuous only our I the we're It's of It's process improve process. like is

Michael Perito

Thank you right. guys. All

I had I I a appreciate few Thanks. color. but questions know quite Sorry the

Operator

Our Marinac comes next Janney Scott. from question with Montgomery Christopher

Christopher Marinac

I go classified morning. to good and Thanks, just want to assets. back criticized the

that mean So the within reserve of kind you against you there? just understand to has what for to those? I properly comfortable bigger to allocation reserve? the put has got change reserve change to you've a change to marked what are that want I

Mike Harrington

values those that that accelerate specific a default again the and the those get horizon. hard values material thing reserve crisis, pretty to on that until appropriately we the to We we are impaired out would recovery. our at payment going the to the any And a time and nature change in if into current would assets counterparty discussions something The forward, the only believe a have like of current unable obviously be are transitory figure don't we see permanently determination a debt their service. looks to we terminal normalized hardcore would now of for make reserved maintain allocation was a that have it's basically

Christopher Marinac

have to Okay. Great, may then that there have the just helpful it. may the earlier that revenue mentioned You in very is that's missed unit major any I disbanded change and you quarter?

Frank Leto

the we just, we and No, that that the mutual of and fund recouped we've we'll advisor costs No. had years. again, wind-down some to know the related in we two

Christopher Marinac

Frank. Sounds Thank Thank it. you you, both. Appreciate great Mike.

Frank Leto

Okay.

Mike Harrington

Chris. Thanks

Operator

Instructions] Our comes Breese from [Operator next with question Stephen. Matthew

Matthew Breese

morning. good Hey,

Frank Leto

morning. Good

Matthew Breese

paying payment is portion balances plans -- deferring deferral Just real what versus the on the principle deferral now, partial or thing interest on and only interest? entire quick total

Frank Leto

disclosure Mike, from a perspective?

Mike Harrington

information, good haven't That's We Matt. that point. disclosed know Yes. a we

Liam know that have don't of I don't I might it. have me in if we, front So that breakdown.

Liam Brickley

have about If to I broadly? okay it's talk Mike. breakdown a

Mike Harrington

ahead. Go

Liam Brickley

the a with roughly total only, in is And maintaining the us of deferral XX% that you their paying obligations. other are sufficient on XX% or a on payment only meet to payments interest deferral swap principal are transactions either if

deferral. XX/XX split IO total roughly So between and payment

Matthew Breese

point deferrals if go from NII be to accrued to to and the deferrals of total out amount MPL what's tied meaning deferrals? Okay would the interest this were what have to of at backed

Liam Brickley

that. have don't I

Liam Brickley

a we're, we've public lot disclosure as than well. line our up Yes. with to more us a got That's little probably

So…

Matthew Breese

where hospitality there, question, then very of have on you'd the could Chris's well going levels healthy reserves repaid? the to borrowers as just LTVs and other sources at retail portfolio you portfolio get versus insight the And on us are you the look apart or back you give being from those portfolios as Okay. payment comfort other of just some are

Frank Leto

the of class their that we their position look Well, property. globally liquidity speaking, in global at the look sponsors, concentration We strength look their aggregate. by at we and our and at asset

that's their looking needed we constantly and significant strength As last sponsors deep I supported doing at property flow on make guys. and we of appetite through how and our it's our dives a and with to for obviously assessments global level future and cash both borrowers a at level demonstrations our historically have our where these downturn risk previously the monitor as something sponsors ratings property are mentioned

Matthew Breese

of a should term Understood, the feet. or at closures okay. optimization The near office the expect from mentioned business. branch point avenue? At side in look XX,XXX and office saves some square the branch mentioned office medium And back that we then optimization, you the front expense Frank, you'd taking future obviously also

Frank Leto

yes. I Chris, Well, yes. mean

it's lease of any way, look opportunity I branch we not plans going end We're branches ago think in of at looked specific and space. it's future. and us to our some on we, of don't at differently. continued month to of differently. it the office that view goes the that I some look that'll that have any branches there one this now we going public doing think to going a to at think our next at a where think but estate real model we've who's decisions for at I have we some acquired and anymore us we we're give anything approach now very do what, opportunity each time try give years to to that actually real and where that's make definite just going fit at branch as not just number strategy mean as our and of really a to the didn't of and overall look I part I a this we're that in, we each new operate exited

Matthew Breese

Yes.

a Sorry for hopping around bit. little

opening just versus and the little like quite the on dividend, on $X.XX take in increase step take see a The is which wait covered we take message comments. direction front bit bit quarter’s felt as approach one You in the last capital should a next we the -- that the a quarter's a right the Should dividend. and the front? dividend and this capital

Frank Leto

will debated a dividend never increase and too in were penny a perspective was is capital penny wouldn't, amount and in much internally. a a We dividend we looked around analysis flow at was I from were is adequacy a penny done cash of a read this small hope perspective. capital this answer at we've I going one the one I never, and doubt, the holding in a I into shot I at where from which that increasing dollars and wouldn't we environment take our to very quarter company liquidity at mean pay that cent

all I it I the So we're dividend about because feel where us important trying predict much was and it about too on transpire don't still into wary We the data to we very need the here. We have lot a the don't concerned what are just and about us future. very phone to at we thought wouldn't good future increase read but demonstrate predictions of, of might about make the that. think have to we

what a well we're the of we might good not [indiscernible] felt we're going change a to wasn't we're what like position statement to future make extra paying bring. come a the we're again shareholders context of amount capitalized trying is around XXX,XXX capital in the very to material and and in but are So back

Matthew Breese

it. Understood. Got

expect And floating the last [NIM] medium the loan term? this to the front majority re-priced just then the near Okay. the variable what one over point of rate and and book has on at should we

Frank Leto

Yes.

that I short profile. term a is re-pricing think book a very of lot

market [NIM]. you to the the put remarks I that my holding a of the of just saw going and just the cash fact is So cash as following a lot quarter noted downward we're lot in in on have re-price prepared going pressure holding indices to that

Matthew Breese

Understood.

you. my all questions. that's Okay I taking had. Thank I appreciate

Frank Leto

Thanks.

Operator

back And would remarks. turn question-and-answer to call like This Leto concludes session. closing the for to Frank over any our I

Frank Leto

all Thank credit you We times on while process Thank we our our and today people, really in quality for positions environment talking and uncertain you in of think being future to you. I your focus well shareholders come. this thanks the forward the the in again in and look can't thank to historic bank. for to us future, yet and in us forecast what's and joining everybody these and investments technology

Operator

The conference attending concluded. has Thank now today's you for presentation.

disconnect. now may You

Bryn Mawr Bank (BMTC) 21 Jul 202020 Q2 Earnings call transcript