BMTC - Earnings call transcript Q4 2020

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Operator

Good morning, ladies and gentlemen, and welcome to the Bryn Mawr Bank Corporation's Fourth Quarter 2020 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded.

On the call today, we have Frank Leto, President and Chief Executive Officer; Mike Harrington, Chief Financial Officer; and Liam Brickley, Chief Credit Officer.

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

a with the risks, to the their Exchange located related discussion Securities and to review website of you're over to ahead. call go on I the like the and turn business, encouraged complete would at the more uncertainties For Please assumptions, to corporation's now www.bmt.com. filings Commission Frank.

Frank Leto

Thanks, you Melissa. call And I'd joining like to thank all today. for of our

the difficult XXXX we've common We very service environment. our through times full always While we in our all all clients. of deal in with that what nation Bryn difficult I'm a strengths, attention and hopeful XXXX at recovery, it united of most Mawr of towards Trust; us as confirmed thrive our year we're of purpose exceptional circumstances. a we believed and headed providing focused can to went unimaginable was together survive core Bryn Mawr come but challenges the challenges, a the to in on will all At current

$X.XX positive diluted We income recording and per net forward our days challenges, cents the fourth better Our more but these who look by not perseverance continue days time have or a be and earnings that perseverance past only $XX.X ahead for acknowledge may exceeded indicative preceded to we note successes of are of We again. million of of met share. ended the be to but and our employees expectations time prepared year on therefore such. quarter

of a very rates, personal in credit, XXXX, we performance. interest full $XX.X liquidity, around with In diluted we the $X.XX year income pleased the earnings our well-being, economy which year we're experienced For uncertainty per share. million unparalleled net our reported or of and

uncertainty; due year-over-year it's the to a model approach modestly coupled with shrunk conservative portfolio loan diversified more marketplace economic in proved lower the While our demand business of light efficacy. in

group of and the assets a $XX growth Jen wealth this Nearly wealth quarter under end leadership; and all from represents quarter-over-quarter to XXXX. our year-over-year. grew from third our Fox's the set the billion record business Specifically of XX% end under high. management XXXX XX% new grew lines of of At

Mawr businesses speaks This over of Bryn by year. Delaware particularly has increasing last XX% importance Company Other and earlier initiatives Trust, Mawr a fundamentals in Group, experiencing. to times done again as well under assets several throughout from improve, diversified our the strong; Our and to of completed as Bryn we're at remained grown we capital this year. XXXX, discussed core quality such liquidity credit have continues management

Heading of our just and decision majority end to to deferrals momentarily, environment. June, our environment, I'm Liam were One more discuss loan transition to remote we investments we've substantial working approach the committed behavior of announcement to a ongoing to employees from a branches with and to success working remote April. organically. our Further the home our the and to way the make branch exited of said, our to align this office expected periods branch of planned past customer the and into of but in led remain technology; working few will That the likely quickly investments of allowed cautiously outcome of review to portion be XXXX permanent, a locations made Bryn in ability effectively highlight that a our Because space fewer of years. As subsequently branch we're take distribution of clients as in economy physical grow alignment general it proud customer's detail year We elected pertains X% the of credit will initiative our to closures the post-pandemic. ongoing reviews the in our ongoing from networks, work this is pandemic. our the our the through in in Mawr. consistent needs XX% in a and the team's of additional measured helping in ensure peak optimistic I'd includes at next like above over have over

towards of Costello our of serve [ph], example the focus Another growth hiring Director in George as Southern our New the who Jersey Commercial is of will announced Banking organic market. Managing

is region. our extension this commercial markets of natural client to work South our acquisition Jersey a will in accelerate current and George

While opportunities persist, in order returns. and positioned to shareholder drive market we we have uncertainties ourselves identified accordingly believe will within our

however, markets remain ability industry, we're Our team's with confident our our market BMT high the approach. to within of in our levels capture one liquidity competitive share from

now to Finally, Mike I'm announce year I'd of consecutive fourth turn quarter with call the our XXth full Directors results. of dividends approved this to marks share to discuss proud Mike? an increase. the to Board over XX% dividend, year the like a

Mike Harrington

Thank you, morning, good Frank, and everyone.

million building, to quarter several included savings of for the be termination realized that to closures recall diluted Frank the of GAAP [Technical one another, buildings related offset one related estate lease nearly the two XXXX. or non-recurring posted portfolio XXXX, the non-recurring we items noted As of that of downsizing share. office fourth early items fourth begin The will sale this per $XX.X of office $X.XX real a to quarter you our the income quarter the back included in The Difficulty]. may back first

stable margin the interest was this with to interest loan fourth of outcome. net lack quarter, For flat. income contributed a A coupled growth net

lower loan paid economic credit fourth we and moment deposits. sale offset the and the XXXX, throughout overall primarily of income the revenue increase year. allowance division, held sales during primarily to The X% was result the during wealth facilities last to was building up to the of of in up for expenses extremely of an see wealth the particular to XX% by million. was of a portfolio, the increase was X% Related the this same the were able we the result yields to quarter of losses, reducing the note, downsizing quarter. expenses provision Non-interest relative unemployment, bank's and incentives up almost related rates of the increased activity the as in to related a the items. be quarter been on our essentially losses Further, strong fee credit that as led relates these will release our the revenue to fourth these the quarter $X.X would to for liability; three income of during Pennsylvania well a for pressure with if incentives quarter-over-quarter on during Nonetheless, discussed conditions, current quarter paid portion in of deferred yields XXXX. quarter. Non-interest compensation stock to the quarter-over-quarter, a in a specifically recognized not While market have Expenses gains function improvements ago. continue forward-looking flat during the

to from was during flat results, be one equivalent and XXXX in adjustment. Turning net both, coupled our the XX tax the was the year well of decreased XXXX, year. that fourfold economy our the to drop the decreased losses seen to income up nearly full the net margin yields pricing. in loan the year in primary impacted the for in portfolio light pandemic X% deterioration points CECL interest significant This can income basis which our Non-interest year-over-year the with interest day the Revision held deposit full adoption credit related nearly for driver very increased of of increase following pandemic. and

adjusted assets our terms had wealth the the by of great division discussed, which which of XX% A assets exclude to payment growth revenue XXXX. unwinding year-over-year in from that X% mitigation fund. a grew decreased business Frank when related under Non-interest X% the over and year is expenses Trust XX% revenue mutual the note, year-over-year. growth and As management particular to was

we expenses At we allowing positioned XXXX our us diligent and opportunities position. proactive handle initiatives; technology headed to several challenges support savings mentioned some end you ample initiatives was to approach were to result control for the year essentially accelerated towards of adjusted the our may we When these we ongoing strong last while recall, facilities our liquidity pandemic a taking and downsizing versus As our last the have hit, quarter help the prior the in of investment more and expense the of of cost even expense XXXX; into pandemic. balance sheet the portfolio of quarter. this capital flat keep same when in a year

pandemic. X, has depicted after asset earlier As on the in Slide the deterioration improved quality

asset seen the we of as of the the credit level vast and with from confident we sit stabilize have here our our losses. quality indicators today, for are high majority allowance and points, We improve

and as markets. the and potential Looking to ahead, we anticipate the economy for it volatility pertains continued overall ongoing uncertainty

the As margin, in believe under pressure for renewed overabundance the liquidity of net could compression the causes interest additional marketplace it of launch we come spreads. if

the interest modest in counter net margin could potential yield recent if the As see a pressure, to curve on we margin. can hold improvement steepening, it's to the

will the the Regarding variables vaccine loan for rollout, economy; areas the economic demand relates of are to great speed that credit. direction as uncertainty and the it or there of influence stimulus, the growth, pre-pandemic like activity still resumption government of

these year, expense loan to rebound half and first likely we the past Similar committed unknowns the muted to remain control. in Given of is the growth year be thereafter. to thoughtful

we expand took turn our hire business. our XXXX, in Liam we XXXX. execute growth I'll to be expect credit. discuss continue actions it to That talent said, to will We over minimal and the that, With technology in to expense given to plan

Liam Brickley

overall solid composition the decreases estate in slight non-owner occupied business. experienced Thanks, loan quarter. commercial construction commercial segment, and residential, The growth the C&I our portfolio by in offset shift segment, a the third specifically in Mike. We saw during real

main XX; clients. ability We our real XXXX. saw more we been sentiment around going environment, worked half of environment, segments the to Slide on a our of the there current from and very positive closely susceptible the some as outlooks operating which stabilized in future the has through closer, growing consider the to portfolios into first clients uncertainties and improving the conditions we within the and manage Looking estate with

still our believe fully hotel we a we strong and than reduction stable including of the since a some take loan confidence improving commercial quarter. Overall, into sector time We substantial values. recorded XXXX, the modest at year-end, fared crisis from client strong in have real leverage will portfolio noticing exposure number rebound the to better difficulties expected. of are it While fundamentals, estate with underlying last in with to remains this borrowers modest went

the at to XXXX. Moving we're is report portfolio approximately the XX% to of significantly X% pleased total of high of this the at point the year-end; lower approximately than second to end XX, Slide declined deferrals quarter

decrease significant a closely CRE of deferrals CRE to is X% alongside segment decreased of the our high in at year-end. hard XX% a clients XX% saw occupied Our yields non-owner June year-end. which from The largest loan portfolio working from of our a team interim. the confidence at the occupied in down X% high owner work in We of to

quarter, in positive of or exited operators classified retail been exposure by During business a we in estate category has special criticized downgrades There Despite the clients a exposure whose been centers impacted have the surgical NPA new and several by the and is models transactions. the credits, COVID. partially fourth loans real for decreased. loans mentioned reduction number offset successfully special space net outpatient in commercial substantial increase such as sign. classified as reduction was to our mentioned in reduced overall This the

is too the trend. remains this of early if it to However, beginning tell a

the clearer along vaccine with an out quarters. We portfolios a and view will few show conditions to over continue our sentiment, economic next the expect increase XX conditions that deferral more a granular future as new COVID have of to and expectations of normal improvement. Slide our XX/XX/XX. XX trading these the customer rolls history view could improve, as further provide we would of If

second are XX% As deferments second to on impacted the COVID to alongside these terms portion regular We and vast return only and a necessary. deferrals to XX third restaurant an occupied hospitality XX, majority quarter working in in borrowers Slide Non-owner payment to on the breakout P&I commercial schedule. currently into loans of remain see committed this deferred details Slide approximately schedules deferrals. were we CRE prudent were The interest expected of first the of The continued XXXX. between and concentrated assist year. clients

the breaks loan the third XX to in and year. occupied into continuing zero expected out are information slide largest CRE-Non-owner in to segment. seen the of XXXX deferral deferrals the segment, reduce As half the are for near second our Slide

that the payments year. third the This But later bulk are we of As these of full mentioned segment will majority a represents moment resume time the ago. this confident deferrals. borrowers

to of After turn XXXX these obstacles. growth range there on the through at the loan believe of add which we'll overcome and as day. this working continue were middle have our all unknowns credit we to we As customer I path we is and and uncertainties, many call quality a If with But XX Frank to enhanced our now XXXX worst practice, our of or a last comments. of improve Frank. wanted the during and the on a to managed to patience case We measures with another. sound With day, recovery. underwriting persist where outlook the can economic continuing one sentiment well. over customers the few the touched the conditions, relied economic months, clarity at pandemic earlier, that, prospects Mike wide say scenarios and have the at end improving some improving considered experience point for I of will and respect back From on will I confidence we prospect the of to has the improved, of

Frank Leto

will operator please. that up line questions with the open And Liam. Thanks, to

Operator

question Sandler. Piper from Instructions] go ahead. Please Whitman, [Operator Casey first today The comes

Casey Whitman

Good morning.

last So wealth on success the businesses congrats in the year.

So a acquisitions did the wealth in just while since wondering, it's you space. been any

what just was guy's your as I to year? acquisitions So for curious wealth was this appetite

Frank Leto

opportunities. Casey, things at think, sense we're come made looking for I has that across always us. and Nothing's

have acquisitions, acquisitions You banks done. just generally know, the RA that

haven't If that all successful. around been the country, you they look

had. the been trust have of in acquisitions we've model structure similar successful past most our and have what companies probably think to I

such So, not of growth. organic trying take with types to stretch. you success we loan don't know, need to had the with risk because unnecessary We're these any we've acquisitions

on focus I on to something at strategic and there's that develop, But is think being, we'll makes we I to time doing. continue execute organic for opportunities we're know, sense growth. look our the it. and if as what they obviously continue

Casey Whitman

we're updated year while guess this looking I just sense? and topic, you're how Make thoughts well? M&A any on at Bank the as

Frank Leto

wealth really franchised sub-takeout that be you to for diluted, RIA additive wouldn't mean, ditto in and that we know, I seen our much markets. us. is haven't strategic or really for be really would Pretty going be And [ph]. just that anything is that -- will that example,

that it building think, best for technology up our spending be up lot market infrastructure So, we the last opportunity on something you think, again, There's go our and teams of banking we're know, really, focus building we've continued to as know, well. for be for And I couple the one the in forward unless us community here make of just growth, sense been into. I pretty that'll you jump the a to mean, up pops side. years I organic of growth, putting place. I think that'll

down, we'll that So direction. we think pandemic settles right going in the keep can going. we this keep growth Once trajectory it

Casey Whitman

some the give it. wondering Say this where more, Thanks. margin you I'll are if just us pressure ask we Understood to and maybe the and appreciate details yields portfolio coming if enough? the by the outlook of narrowed on is core still just yield on gave kind new whether production could on one relative sense. Here? makes any gap there's just there saw where

Mike Harrington

another. actual the morning. pretty average I'll are I'd Yes, than to new good Casey, yields close I yield. coming than lower on say they're it's, take on mean, that But one

prepared not overall credit. out probably in that that there's as new and commentary then that, just yield demand so for much to point. about this much the XXX-XXX-XXX I So liquidity alluded is at there, there's and What is below book on business putting in the the

each against curve is the potentially news So those things a But a to other lower. good spreads drive working bit. steepened little three are

of So that might some downside offset new the that, yields. that pressure on

Casey Whitman

you. Thank

Operator

Please The go today comes from question next Michael KBW. of Perito ahead.

Michael Perito

year, a I'm clarification at to want X, guys, the the little growth you the expected for to year. that guys a the good Thanks outlook prior I be XXXX. is on looking on minimal go a color mentioned and more If for prior Slide had versus expenses. Hey, question expense on number the I I When bit some items some curious; morning. call on you're prepared for like about talk Or jobs in you guess number have for thinking XXX a fourth how I'm growth? quarter of about XXXX? minimal XXXX. million I the there is that alluded of core just your Mike? [ph] remarks? you those in that about to

Mike Harrington

it's number, not so just the Because, ins we're It's think strapped outs. to the the tried use it reported do keep actual want to and just dissect. we and I all and relative try too it numbers. simple complicated to I flat to hold explain to gap

I in So normalized expense and was particular, just of just, to QX think, a for the that. there lot we're number related because

would hold then to should XX for taken that that that XX down about the we And relative to going forward. a a of pretty number number expect on to. use and be QX So number close normalize And kind basis to have million. just

Michael Perito

okay. are side, prior I growth. say rate, right. fourth depending to pace there run you sounds mean, mean versus the quarter your so on But it hold minimal it, investments guys hoping you pressure it, year, the will more upward like, and you you and but your guys know, that Got be some could technology on are when of you that

Mike Harrington

we'd I so to Yes, redeployed year, if over be getting single not be expect zero basically. coming expense of number zero. the the very so people money's mean, and technology again, expense minimal, very down, that occupants into growth year digits will low lower But

Michael Perito

of updated bit, specifics little guys you mean, helpful. here? at know your as move Mike walk if looking are the we that or two I across know, to next guys and be rollout you through Frank, curious just guys this was the at pretty you you XXXX And roadmap of there's [ph] for then or when mindful advanced wondering that that I guys you a in you of of other that kind as be you it. I if kind Encino in is, are That's point, technology platform impactful could share can should see any year be us maybe, Thanks. could think

Frank Leto

year Sure. the for think Well, this half story I of Encino really first the for sure. is,

and is You of modules hopefully of throes now the And of between piece, Encino to which of 'XX. the goal. 'XX in the is end know, piece, that's right [ph] all, three of be that end we've quarter the commercial launched we're largest should most the the through complicated the close probably the second done,

So, I the to don't for focus start and not try that prime of efficiencies really system interim. want get to doing everybody get that. like But get in is say the to the we're anything efficient that completed to

lot getting and management, literally it throes our also of technology managing we're the we'll we're technology that. of did hardware it, Investor know, out You out he but give getting call, on little the quarter, a internally. transformation color, have in more into can bit maybe our hopefully, you next a last Adam Day, And the at business, of like moving cloud, of a you

a So going that's big forward. focus

plan next their strategic industry the platform like and planning, a our two to done always, at putting looking over additions nice together Some really appropriate to three upgrades And for changes, know, you any are years. platforms. as of think, I of us a job subsidiaries Adams and some and just

reasons is in technology, keeping So flat, investment towards of you're the continued in efficiencies. do we've couple of And going Mike, I think efficiency from of expenses able with an know, invested eye everything resulting think And of you of hopefully I kind that and one what there'll just do we in part that what we're is our built. years. be is the upgrade to forward because hearing a continued over last

Michael Perito

how but was like just and credit other part does. that, That's it mean, lower to provision about way. XXXX. earnings is I out, But the improve stimulus think costs the bank environment it optimism I the know, cautious, there looks do Thank we the that the normalized of client profile expense it's but and more somewhat overall, then sounds room fairly just, provision you think profitability bit guys but in as And, you just you with outlook like. sure the pre we'll little credit stable, obviously, still that to will laid think XXXX of kind the the in is guys is the you help a of helpful. at kind how maybe But what Thanks, a two it improving, point, fair of Frank. will low are And a rate doesn't of and certainly lastly, so? about we XX what and it that than expense color, likely, just And a endeavor, months thinking that you. the make environment, just or be or a some making most question see that XXXX in know, that you and that or go it are a guys little remaining of of for challenging XXXX, environments, although you here, seems over more about the get any kind vaccine like steepness next as

Mike Harrington

I'll So, that. take

I the think Mike, So ladder. that's

the year. growing on that side idea a the and around house just year So of the think pressure of over the expenses flat function earning holding is I

I year. the end back think mentioned, loan loaded we the As on of probably growth the

end effect the just year, a we're year margin up with the average you decrease you prior So in from over modest of and increase know, the so then balances full year. the in you get

going can we're to offset So income of to we some business think to fee grow, we bring our endeavor that. grow

average bout short with the sheet part the the situation leaves balance into your throws really materialize you and is longer second it's that and that scenario, on of should average second described, until So which difficult we to you gross XXXX.

Frank Leto

life going lead. back vaccine to at to just to about will come look of to We're into a some that how with kind be hearing we respect we're trying what So we're thing. to environment, prior getting normalized the the cautious really

Michael Perito

safe brought up, Mike, sense. just follow I that I million, year I you up, know, more one of if right environment And year assume with stick asset itself, normalizing I mean, from PPP. maybe there's only lot any look $XXX at you base that you from probably or that up probably like, near point, size a on And clarify want you to in the of going still liquidity that to just do right, know, term updated still million customer makes see came today, around of liquidity bucks, around $XXX liquidity because kind base? the at this thoughts the some it balance is is to sheet you Yes, something know, and some of got your

Mike Harrington

Well, seen we yet. haven't it normalized

that, is lack first for credit us fact, other in decent terms is growth, to there's will Mike, invested feel it especially as in back sort no real amount washing that trying and we're to try in with hold from the like to to When investment profile. of at little some constraints, supplement consumer pre better uptick much in to some the a And portfolio you'll can grown, liquid where And we're debt and and deeper when out to credit a loan going of of a see subsequent we've loan year, that's run standpoint, CLOs, it successful of things a and $XXX yields out. to use the look sense was the change it to be balance liquidity dollars be calling in we some a a if going and going believe will of overnight book on deposit say I in put of half then sub saw end I of liquidity. the that take that that to those where then there's like pandemic. we've of there return when on of the But excess and there demand to where information, make think that about at put million it don't so get change. done things one cash and again, to of you sitting doesn't still liquidity back liquidity also the to see to the overnights. been some it that's the and bit a then growth. liquidity be we the So had, sheet But we we bank, we've big want the goes

Michael Perito

and Really helpful. the update guys. you, well. stay Appreciate Thank

Operator

next Scattergood. question Please comes Boenning Zwick Erik The ahead. and of from go

Erik Zwick

Hey, going at good on if morning, quarter I and from trends million full markets thoughts capital I just that how guess, level guys. certain non-interest about the to perspective, varies start specifically wanted in revenue based know, $X.X I any here activity. quarter to you and on the forward obviously, it from a in income year that from looked XXXX, XXXX?

Frank Leto

Mike, that? do you want to take

Mike Harrington

Yes.

I think that numbers Eric. are it, good. That's a good about way to think

when to on have launch of revenue dependent access or we close that lot to [ph], is going volatility. just we're A So length.

basis, in might good we you're some of expected number, about at number that's have some least we'll and million where forward activity this it a of on rolled number, if think what XXXX. there land of year. thinking in QX, $XX So a But that that go QX $X.X in into we is

Erik Zwick

round then the and PPP. it, Got of newly switching to gears authorized

Just curious, active as you how again, much you How seeing? are to you know, selling around? time the do demand you anticipate did you do first be? intend And

Frank Leto

an are as the them. nearly two. large participate we there going We as referring to not at arrangement much we're had seeing some, sold time we I through, our round servicer we where, not some worked in say to the to requests, we'll to we've and mean, isn't, a as have very portfolio first we're demand, loans, Anecdotally, saw of customers

day, risk Bryn people Mawr extra the to it's, the who's operations at SBA and at group the shop the of credits. XXX loan doesn't know, end for You a like so operational have, an bank, not an there's in manage much

know, was you if I thought going a has lot everything forgiveness look As off mean, everybody run you back, longer. to quickly. taken And, real

to been still it to I exit to the in XXX% those wanted really June, through we've go So is because the customers, loans. is a well our really have you we which And think to devote served to with of attention able there back do. process, what portfolio us

want I our deferrals got their into think down. going needs, for that's we 'XX. there to going we and for be the 'XX And how customers forward and

Erik Zwick

And agree, difficulties a inaccurate Thanks. the the lot in good, I it. foresight and of Got of the had to process. you some guys anticipate whole extension yes,

and last. So then

Mike Harrington

Erik, to to add just Frank.

the it's the first it's I week to it's open. first, really So think just been

a partnered partner, some getting company company into of this partner that, share we've later that will we'll to will later data and we be with, a today actually we get request today the second your see coming we actually to report go revenue related a haven't as that the point, any our report. come over handling be At second first So we yet. will they to in. get request that But gotten the what's will

Erik Zwick

great. out or look recently to the the is of like the from you commercial that talked arise the will naturally that. savings to add Mike, Look done guess lenders. Jersey, front of the you be that there? that, off in sounds What I individuals expense close And then And that forward you the you and are specific market over about, you discussion branch so the wanting XXXX? New reinvested to do you Yes, ladder target talent director the generate that previously talent, to pivoting just one how that I addition for new rest guys of of last in have any terms like for have southern guess, the likely about it me time? opportunities And tech of ranks and there mentioned on think the with in

Mike Harrington

I think, marketplace, with the for obviously you I in know, it makes communication open think it's, get looking to all know, I the not that, sense And advantage out we wants talent referrals culture lift some we'll keep we always really them. And know, be Erik. those. unhappy. wealth the can I moving then find to group, you move up always And, come players in of lending. key mean, and above, through; on wind and fits on pop just or bank. it's just to we opportunities at I on unhappy it's anywhere, that commercial for the our take try our and just somebody mean, of of know try with opportunities, channel and

answer, it's the people branch broad enterprise, a how I question entire but we commercial at these lending. you can about broad but across just in just pretty it get look of really it's So, there, not in think

Erik Zwick

there. color the my Thanks appreciate this morning. questions taking I for

Operator

from go The of Matthew ahead. next Inc. comes question Breese Stephens Please

Matthew Breese

Few Good questions. morning.

bit confused expenses. sorry back got I So to go just there. little a to

flap. like me you hand, year said, hold $XX the trying number, core is? then one million. for I the talk the just heard to target full Can But clarify the number XQ On that you base about GAAP you also what

Mike Harrington

GAAP number. XXX your XXXX number as use Just The [Technical flat Difficulty].

Matthew Breese

looks And like. then And along been what the talk you. you little thank Okay, hoping pipeline challenge. bit the could originations it's growth, I was a it's between payoffs. know know, interplay and about I I a

Mike Harrington

related as Well, the just I my capital building pipeline activity. the some activity, that is some noted markets, around common earlier, of to of

QX in a bunch We on construction had side. closed just and We in of a might expected have QX. approved moved the board meeting share credit that we yesterday

be again, growth half then second just So is will I and to said, first in there's incremental think pick be think And potentially like in the the growth, we muted in I half. but think half first up going we the adding activity. the

Matthew Breese

seems well, line know, was pipeline efficiency for doing of a the business today. administration? actually terms right. and can BMT looks, turning give it where it's I in update Delaware, All you business an the stands how lot in new terms like AUM us new of you there, quite And given you then also curious know, growth to it's of hoping

Frank Leto

I don't I mean, know nicely. I and that quarter grow a out we're AUM mid say on putting to that grow. but can continues it updates

part Delaware. year develops, see more that's extraordinary. tax of know, year was to that to the forward, a usually going first our I year. happens, But it month, we think You BMT, It finished usually reform to that an into saw going appears extraordinary what carried has really the business continue up been people by by this a just large opportunity, I guess, we're driven see of end it, as the, is it's be the as we'll that of in And last you for more, of execute certainly momentum that this tax lot at build not planning broad, And part estate a we just happens, lot just know, changes. and so is what driven law fundamental on. probably

great great growth still that business. So, I opportunity there's think great in opportunity, a

I exceptional really, really, it our constantly an from have clients. down We We there. team consistently a think, and hear

the this momentum really So I year. to most through expect continue of

Mike Harrington

answer was was a the the of about note, can the kind mean back and specifically was I especially incentives I the at paying normalizing Bryn of December benefited around at thing one comment XX; the of and goes were in end we're way lot the just billion customer of that of under we up is, I and to the apart open year questions end just that. -- till Mawr my $XX related as stay right the in it's continue the keep us the business And when area, year momentum your to end it Frank things that and do only all then, being year, that service. really us of The expenses, business to new written, business Delaware we since the up Trust that of business till sets

Liam Brickley

Year's X:XX, Eve [ph] evening, Bob about New literally. on Club Eve early -- closed was actually Year's Bob New Actually

referral lot why think sources. the -- that's becomes that a -- this for service and of I of level our speaks of to So just choice time a the to most

Matthew Breese

I appreciate that.

about what mention bit the you just ability willingness there a circumstances the is a would or is where talk one authorization. repurchase? share deck, of in the are you just Can little Next repurchase

Mike Harrington

into had first paused pauses went Well, we pandemic, this now. it, think that when I we -- the off into

capacity, original a same we buy sitting and as $XXX got, our authorization to cash company, slide, with. the evaluating the share lot for boards, in back have so of noted, holding got to here; our we've we on we've on a a them at And stock of it remaining definitely from $XXX,XXX got potentially opportunities, then over looking we've authorization have authorization that we'll we went of the we be still So also we're cash future. in the million

Matthew Breese

Okay.

President frame for me a business South one lines; you're what new looking in of Jersey. for both; South to curious? little regards C&I, Regional And to us Could last you what just the in the bit target? Jersey CRE, Just specific within markets

Frank Leto

his I C&I. is George, think With background in

But on opportunities Jersey in will result. has think mean, his I as builds natural for up sweet the extension I CRE that natural his New an Princeton, Jersey; as of what South doing I CRE a market. that's been so what know a of the of his be it's mean, the there are he front; in we get been obviously really Kevin lot mean, And ties a a [ph] outgrowth just I the doing opportunities that of it's us, team, and spot. we've Central area, extension front many with So, so on there. it's I Philadelphia

of see a broad team. you'll think coming and I So, George his business out of base

Matthew Breese

Thank That's question. lot. you taking for my so much Thanks all had. I a

Operator

go Christopher Scott. ahead. from comes of Montgomery question Marinac next Janney Please The Instructions] [Operator

Christopher Marinac

you assets. was in further little of movement thanks. downgrades upgrades wanted couple hospitality; just quarters? back kind morning. the on curious bit to saw classified retail criticizing and in the what or see a to some I circle path of Hey, I Good just next We if the area the

Frank Leto

Liam?

Liam Brickley

look our Sure. [ph] monthly, We review detail, last our was in yesterday. actually and crib-class book at

upgrades rollout is vaccine. I of be right which a the going trajectory -- are folks but the think in a turn to the of to normalize recovery burning pace We're we're of cash through the return activities. to now, so are kind of at is to really stable and not ultimate economic the trading looking the people lot tied triggers So for rollout, tied

things looks hold all the context. if a if reasonable of continue equal, conditions and being QX/QX initiatives like hold a in take So meaningful the upward trajectory health of and way public impact kind economic in it to pretty the accelerate,

Christopher Marinac

utilization utilization great. kind decline you it And back we've to seen we've is or that helpful. That's And just of past of seen years unusual somewhat year? last data follow-up quarters. the Okay, last compare this it on you've what How is does see this that then the ago; shared this normal crisis? XX-XX couple the to

Liam Brickley

commercial counterparties. been prudent frankly, of what's think cash that's utilization, in making And world than confidence in the was storm. imbalance or typically into down. both usage have impact by issue. investments that think and I little the extends driven came sheet management our a last I good most that real for and one, crashing expansion Well, the balance the an COVID a clearly the the driven by HELOC consumer fundamentally bit part this not is lands; of that the speculative by crisis business and side This holding to very and different weather driving the was are inventory the managers And it's on estate, unnecessary it recession HELOC residential is

crazy don't was think folks. gone us tell there years this handle recession provided with been ago not a the also for anything. refinancing the have paper has been folks apples market I opportunity because into comparing long-term, away and oranges; thing really -- But and is comparisons So XX-year but two of a lot that the that's XX that's

Christopher Marinac

Got I Well, disagree; don't it. just appreciate background I the and comparison.

much, very guys. thanks So

Operator

from Polaris The question comes go Please Bernard of Horn Capital Market. next ahead.

Bernard Horn

you estate. companies you Good some happen question question on respect about just world more that we're there need as saying, you because going forward-looking and And real on so post-COVID going to only morning. less more them XX%, know, but hear be people, hear changes, need is may given by don't people know people focused what more lot but talking to space we space we I are the reducing had I I XX% the you earlier basis, XX% saying, could a especially, distance situations good you've space of space. on where I a know, forth. a color guess with to commercial And hear net my need

on prepare customers, well from if active the So, evidence side real sounds beginning it estate. your estate been very people the or -- you as lower both have for hotel like are any with side, that real signals do as of suggest to you might you've kind early -- anecdotal

the vacancy I low it's could take LTVs what up question to you so down -- but be know but a your point. the obviously, happens and rentals doesn't get ratcheted forth. I think and rates on that -- you and if If long-winded portfolio, help get the

Mike Harrington

Frank, want take do to you that.

Frank Leto

and to it. Liam Let I'll start add

Liam Brickley

have dynamics frothy and we and Well, South so crisis. the market supply Sure. matched estate local not in of Southeastern up the into going not the is kind a Pennsylvania, sitting demand well real Jersey; pretty overfilled, and were -- commercial first benefit a foremost, an estate of all real in

that's have it's Those and budgets, the or are hospitality to back corporate going probably recovery; the just longer back. building of whatever, probably is a vaccine FTE think reduce. but probably years a within more treasurers for think too that space I settles term, our more of are trend, space We in there probably business their customers, condition puts getting anticipate a schedules; heard folks business kind under same least office office are assessment on with but travel, long-term I that's our and days amount of bounce of dependent an I leases takes, In it's certain imminent and issue, concur is rent FTE like properties, to long-term take to hospitality reductions relatively than which right; so leisure-oriented stuff. and bounce learning a about anything in not at travel, -- with And question the tell. distancing kids Where road social a operate early with will as medical number longer strongly going off tournament will our out have there requires your in our book. space, that not early on it's control, great to those to roll is to number that soccer

sponsor, in property very with we're different conditions, good pretty it's So us off modestly sponsor properties, optimistic the cautiously leave we're a by bouncing by trading -- bottom portfolio. but just

Bernard Horn

that covers only if don't going or that's with fine; I to follow-up I somebody but Right. you it… don't anybody think know to the it. else was certainly Thanks. comment else guess I

Frank Leto

something anecdotal, about It's in who is to operators our portfolio anything Frank, and anecdotally but are because make have looking repurpose even occurring very I'll heard just one I've not comment I'm you this some saying to just and quick and spoken anecdotally, mean And it's asked looking something it I else. and space. heard they broader much I at at people space a are no different what Amazon whether space, be malls; or office you can say residential I level with jumping than into with retail different do

at So, don't I any have people are know but going conversations are particular looking those know we things I portfolio. evidence on, in our

Bernard Horn

very much. thanks Okay,

Operator

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

Frank Leto

difficult interest very shareholders in you Mawr our everybody forward your thank thank a us, Trust. I we happy in soon. call your Bryn XXXX. And after behind for looking to and Talk Well, year, we're to on thank confidence again, you -- else us, think have for central the to for we're that one

Operator

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

You may disconnect. now

Bryn Mawr Bank (BMTC) 22 Jan 212020 Q4 Earnings call transcript