10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

________________________________________________________________________________________

Form 10-Q

____________________________________________________________________________________

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For Quarter ended June 30, 2020

☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 1-35746

________________________________________________________________________________________

Bryn Mawr Bank Corporation

(Exact name of registrant as specified in its charter)

________________________________________________________________________________________

Pennsylvania	23-2434506
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
801 Lancaster Avenue, Bryn Mawr, Pennsylvania	19010
(Address of principal executive offices)	(Zip Code)

(610) 525-1700

(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address and fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of class	Trading Symbol	Name of exchange on which registered
Common Stock, $1 par value	BMTC	The NASDAQ Stock Market

 ________________________________________________________________________________

Indicate by checkmark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No   ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  ☒    No   ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer  ☒    Accelerated filer  ☐

Non-accelerated filer  ☐    Smaller reporting company  ☐ Emerging growth company  ☐ 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by checkmark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act)    Yes  ☐    No   ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Classes	Outstanding at August 4, 2020
Common Stock, par value $1	19,928,481

BRYN MAWR BANK CORPORATION AND SUBSIDIARIES

FORM 10-Q

QUARTER ENDED June 30, 2020

Index 

PART I -	FINANCIAL INFORMATION
ITEM 1.	Financial Statements (unaudited)
	Consolidated Financial Statements (unaudited)	Page 3
	Notes to Consolidated Financial Statements (unaudited)	Page 12
ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	Page 57
ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	Page 81
ITEM 4.	Controls and Procedures	Page 81
PART II -	OTHER INFORMATION	Page 82
ITEM 1.	Legal Proceedings	Page 82
ITEM 1A.	Risk Factors	Page 82
ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	Page 85
ITEM 3.	Defaults Upon Senior Securities	Page 86
ITEM 4.	Mine Safety Disclosures	Page 86
ITEM 5.	Other Information	Page 86
ITEM 6.	Exhibits	Page 87

PART I. FINANCIAL INFORMATION

ITEM 1. Financial Statements

BRYN MAWR BANK CORPORATION AND SUBSIDIARIES

Consolidated Balance Sheets - Unaudited

(dollars in thousands)	June 30, 2020		December 31, 2019
Assets
Cash and due from banks	$	16,408	$	11,603
Interest bearing deposits with banks	448,113		42,328
Cash and cash equivalents	464,521		53,931
Investment securities available for sale, at fair value (amortized cost of $517,041 and $1,001,034 as of June 30, 2020 and December 31, 2019, respectively)	530,581		1,005,984
Investment securities held to maturity, at amortized cost (fair value of $12,995 and $12,661 as of June 30, 2020 and December 31, 2019, respectively)	12,592		12,577
Investment securities, trading	7,801		8,621
Loans held for sale	4,116		4,249
Portfolio loans and leases, originated	3,422,890		3,320,816
Portfolio loans and leases, acquired	299,275		368,497
Total portfolio loans and leases	3,722,165		3,689,313
Less: Allowance for credit losses on originated loans and leases	(51,659)		(22,526)
Less: Allowance for credit losses on acquired loans and leases	(3,315)		(76)
Total allowance for credit losses on loans and leases	(54,974)		(22,602)
Net portfolio loans and leases	3,667,191		3,666,711
Premises and equipment, net	61,778		64,965
Operating lease right-of-use assets	39,348		40,961
Accrued interest receivable	15,577		12,482
Mortgage servicing rights	3,440		4,450
Bank owned life insurance	59,728		59,079
Federal Home Loan Bank stock	4,506		23,744
Goodwill	184,012		184,012
Intangible assets	17,303		19,131
Other investments	17,055		16,683
Other assets	181,762		85,679
Total assets	$	5,271,311	$	5,263,259
Liabilities
Deposits:
Noninterest-bearing	$	1,217,496	$	898,173
Interest-bearing	3,026,152		2,944,072
Total deposits	4,243,648		3,842,245
Short-term borrowings	28,891		493,219
Long-term FHLB advances	44,837		52,269
Subordinated notes	98,794		98,705
Junior subordinated debentures	21,843		21,753
Operating lease liabilities	43,693		45,258
Accrued interest payable	7,907		6,248
Other liabilities	178,024		91,335
Total liabilities	4,667,637		4,651,032
Shareholders' equity
Common stock, par value $1; authorized 100,000,000 shares; issued 24,662,161 and 24,650,051 shares as of June 30, 2020 and December 31, 2019, respectively and outstanding of 19,927,893 and 20,126,296 as of June 30, 2020 and December 31, 2019, respectively	24,662		24,650
Paid-in capital in excess of par value	380,167		378,606
Less: Common stock in treasury at cost - 4,734,268 and 4,523,755 shares as of June 30, 2020 and December 31, 2019, respectively	(88,612)		(81,174)
Accumulated other comprehensive income, net of tax	9,019		2,187
Retained earnings	279,165		288,653
Total Bryn Mawr Bank Corporation shareholders' equity	604,401		612,922
Noncontrolling interest	(727)		(695)
Total shareholders' equity	603,674		612,227
Total liabilities and shareholders' equity	$	5,271,311	$	5,263,259

The accompanying notes are an integral part of the Unaudited Consolidated Financial Statements.

Page 3

BRYN MAWR BANK CORPORATION AND SUBSIDIARIES

Consolidated Statements of Income - Unaudited

	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in thousands, except share and per share data)	2020		2019		2020		2019
Interest income:
Interest and fees on loans and leases	$	40,690	$	44,783	$	83,485	$	89,620
Interest on cash and cash equivalents	37		73		148		205
Interest on investment securities:
Taxable	2,870		3,494		6,046		6,944
Non-taxable	22		37		46		84
Dividends	2		1		3		3
Total interest income	43,621		48,388		89,728		96,856
Interest expense:
Interest on deposits	4,476		9,655		12,113		17,752
Interest on short-term borrowings	232		357		685		1,300
Interest on FHLB advances and other borrowings	155		269		399		547
Interest on subordinated notes	1,144		1,144		2,289		2,289
Interest on junior subordinated debentures	229		352		524		710
Total interest expense	6,236		11,777		16,010		22,598
Net interest income	37,385		36,611		73,718		74,258
Provision for credit losses on loans and leases	4,302		1,627		36,637		5,363
Net interest income after provision for credit losses on loans and leases	33,083		34,984		37,081		68,895
Noninterest income:
Fees for wealth management services	9,069		11,510		20,237		21,902
Insurance commissions	1,303		1,697		2,836		3,369
Capital markets revenue	2,975		1,489		5,336		3,708
Service charges on deposits	603		852		1,449		1,660
Loan servicing and other fees	452		553		913		1,162
Net gain on sale of loans	3,134		752		3,916		1,071
Net gain (loss) on sale of other real estate owned ("OREO")	—		—		148		(24)
Dividends on FHLB and FRB stock	243		316		687		727
Other operating income	2,787		3,052		3,344		5,899
Total noninterest income	20,566		20,221		38,866		39,474
Noninterest expenses:
Salaries and wages	16,926		17,038		33,915		37,939
Employee benefits	3,221		3,317		6,721		7,483
Occupancy and bank premises	3,033		3,125		6,048		6,377
Furniture, fixtures, and equipment	2,120		2,568		4,551		4,957
Advertising	196		504		597		919
Amortization of intangible assets	910		956		1,828		1,894
Professional fees	1,575		1,316		2,943		2,636
Pennsylvania bank shares tax	116		513		232		922
Data processing	1,479		1,303		2,873		2,623
Other operating expenses	5,060		4,548		11,346		9,162
Total noninterest expenses	34,636		35,188		71,054		74,912
Income before income taxes	19,013		20,017		4,893		33,457
Income tax expense	4,010		4,239		1,053		7,003
Net income	15,003		15,778		3,840		26,454
Net loss attributable to noncontrolling interest	(32)		(7)		(32)		(8)
Net income attributable to Bryn Mawr Bank Corporation	$	15,035	$	15,785	$	3,872	$	26,462
Basic earnings per common share	$	0.75	$	0.78	$	0.19	$	1.31
Diluted earnings per common share	0.75		0.78		0.19		1.31
Dividends paid or accrued per common share	0.26		0.25		0.52		0.50
Weighted-average basic shares outstanding	19,926,737		20,144,651		19,989,948		20,156,509
Dilutive shares	81,482		99,758		87,211		99,960
Adjusted weighted-average diluted shares	20,008,219		20,244,409		20,077,159		20,256,469

The accompanying notes are an integral part of the Unaudited Consolidated Financial Statements.

Page 4

BRYN MAWR BANK CORPORATION AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income - Unaudited

	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in thousands)	2020		2019		2020		2019
Net income attributable to Bryn Mawr Bank Corporation	$	15,035	$	15,785	$	3,872	$	26,462
Other comprehensive income:
Net change in unrealized gains on investment securities available for sale:
Unrealized investment gains, net of tax expense of $34, $1,319, $1,804 and $2,441, respectively	127		4,962		6,786		9,181
Net change in unfunded pension liability:
Change in unfunded pension liability related to unrealized loss, prior service cost and transition obligation, net of tax expense of $6, $4, $12 and $8, respectively	23		16		46		32
Total other comprehensive income	150		4,978		6,832		9,213
Total comprehensive income	$	15,185	$	20,763	$	10,704	$	35,675

The accompanying notes are an integral part of the Unaudited Consolidated Financial Statements.

Page 5

BRYN MAWR BANK CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows - Unaudited

	Six Months Ended June 30,
(dollars in thousands)	2020		2019
Operating activities:
Net income attributable to Bryn Mawr Bank Corporation	$	3,872	$	26,462
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses on loans and leases	36,637		5,363
Depreciation of fixed assets	4,001		3,896
Amortization of operating lease right-of-use assets	1,613		1,828
Net amortization of investment premiums and discounts	1,891		1,316
Net gain on sale of loans	(3,916)		(1,071)
Stock based compensation	1,513		1,987
Amortization and net impairment of mortgage servicing rights	1,010		303
Net accretion of fair value adjustments	(1,989)		(2,285)
Amortization of intangible assets	1,828		1,894
Net (gain) loss on sale of OREO	(148)		24
Net increase in cash surrender value of bank owned life insurance ("BOLI")	(649)		(593)
Other, net	1,216		(832)
Loans originated for sale	(46,750)		(35,781)
Proceeds from loans sold	48,211		35,187
Provision for deferred income taxes	99		51
Change in income taxes payable/receivable, net	(4,963)		6,906
Change in accrued interest receivable	(3,095)		(727)
Change in accrued interest payable	1,659		1,592
Change in operating lease liabilities	(1,565)		(1,726)
Change in other assets	(96,979)		(68,444)
Change in other liabilities	90,831		30,744
Net cash provided by operating activities	34,327		6,094
Investing activities:
Purchases of investment securities available for sale	(120,458)		(121,976)
Purchases of investment securities held to maturity	(1,103)		(1,827)
Proceeds from maturity and paydowns of investment securities available for sale	557,125		238,349
Proceeds from maturity and paydowns of investment securities held to maturity	1,023		273
Net change in FHLB stock	19,238		(147)
Proceeds from calls of investment securities	45,500		43,285
Net change in other investments	(372)		9
Purchase of customer relationships	—		(18)
Net portfolio loan and lease originations	(337,951)		(112,046)
Proceeds from sales of loans originally classified as portfolio loans and leases	302,169		—
Purchases of premises and equipment	(814)		(6,339)
Proceeds from sale of OREO	534		309
Net cash provided by investing activities	464,891		39,872
Financing activities:
Change in deposits	401,624		33,719
Change in short-term borrowings	(464,328)		(44,539)
Dividends paid	(10,438)		(10,086)
Change in long-term FHLB advances and other borrowings	(7,501)		(7,500)
Payment of contingent consideration for business combinations	(507)		(523)
Cash payments to taxing authorities on employees' behalf from shares withheld from stock-based compensation	(144)		(45)
Net purchase of treasury stock for deferred compensation plans	(90)		(82)
Net purchase of treasury stock through publicly announced plans	(7,249)		(2,603)
Proceeds from exercise of stock options	5		622
Net cash used in financing activities	(88,628)		(31,037)
Change in cash and cash equivalents	410,590		14,929
Cash and cash equivalents at beginning of period	53,931		48,456
Cash and cash equivalents at end of period	$	464,521	$	63,385
Supplemental cash flow information:
Cash paid during the year for:
Income taxes	$	5,922	$	4,580
Interest	$	14,351	$	21,006
Non-cash information:
Change in other comprehensive income	$	6,832	$	9,213
Change in deferred tax due to change in comprehensive income	$	1,816	$	2,449
Transfer of loans to OREO and repossessed assets	$	386	$	72

The accompanying notes are an integral part of the Unaudited Consolidated Financial Statements.

Page 6

BRYN MAWR BANK CORPORATION AND SUBSIDIARIES

Consolidated Statements of Changes In Shareholders’ Equity - Unaudited

	For the Three Months Ended June 30, 2020
(dollars in thousands, except share and per share data)	Shares of Common Stock Issued	Common Stock		Paid-in Capital		Treasury Stock		Accumulated Other Comprehensive Income		Retained Earnings		Noncontrolling Interest		Total Shareholders' Equity
Balance March 31, 2020	24,655,362	$	24,655	$	379,495	$	(88,540)	$	8,869	$	269,395	$	(695)	$	593,179
Net loss attributable to Bryn Mawr Bank Corporation	—	—		—		—		—		15,035		—		15,035
Net loss attributable to noncontrolling interest	—	—		—		—		—		—		(32)		(32)
Dividends paid or accrued, $0.26 per share	—	—		—		—		—		(5,265)		—		(5,265)
Other comprehensive income, net of tax expense of $40	—	—		—		—		150		—		—		150
Stock based compensation	—	—		624		—		—		—		—		624
Retirement of treasury stock	(3,816)	(4)		(41)		45		—		—		—		—
Net purchase of treasury stock from stock awards for statutory tax withholdings	—	—		—		(63)		—		—		—		(63)
Net treasury stock activity for deferred compensation trusts	—	—		—		(54)		—		—		—		(54)
Common stock issued:
Common stock issued through share-based awards and options exercises	10,615	11		89		—		—		—		—		100
Balance June 30, 2020	24,662,161	$	24,662	$	380,167	$	(88,612)	$	9,019	$	279,165	$	(727)	$	603,674

Page 7

BRYN MAWR BANK CORPORATION AND SUBSIDIARIES

Consolidated Statements of Changes In Shareholders’ Equity - Unaudited

	For the Three Months Ended June 30, 2019
	Shares of Common Stock Issued	Common Stock		Paid-in Capital		Treasury Stock		Accumulated Other Comprehensive (Loss) Income		Retained Earnings		Noncontrolling Interest		Total Shareholders' Equity
Balance March 31, 2019	24,577,248	$	24,577	$	375,655	$	(76,974)	$	(3,278)	$	255,813	$	(686)	$	575,107
Net income attributable to Bryn Mawr Bank Corporation	—	—		—		—		—		15,785		—		15,785
Net loss attributable to noncontrolling interest	—	—		—		—		—		—		(7)		(7)
Dividends paid or accrued, $0.25 per share	—	—		—		—		—		(5,102)		—		(5,102)
Other comprehensive income, net of tax expense of $1,323	—	—		—		—		4,978		—		—		4,978
Stock based compensation	—	—		850		—		—		—		—		850
Retirement of treasury stock	(2,704)	(3)		(27)		30		—		—		—		—
Net purchase of treasury stock from stock awards for statutory tax withholdings	—	—		—		(11)		—		—		—		(11)
Net treasury stock activity for deferred compensation trusts	—	—		—		(82)		—		—		—		(82)
Purchase of treasury stock through publicly announced plans	—	—		—		(1,546)		—		—		—		(1,546)
Common stock issued:
Common stock issued through share-based awards and options exercises	8,013	9		174		—		—		—		—		183
Balance June 30, 2019	24,582,557	$	24,583	$	376,652	$	(78,583)	$	1,700	$	266,496	$	(693)	$	590,155

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BRYN MAWR BANK CORPORATION AND SUBSIDIARIES

Consolidated Statements of Changes In Shareholders’ Equity - Unaudited

	For the Six Months Ended June 30, 2020
(dollars in thousands, except share and per share data)	Shares of Common Stock Issued	Common Stock		Paid-in Capital		Treasury Stock		Accumulated Other Comprehensive Income		Retained Earnings		Noncontrolling Interest		Total Shareholders' Equity
Balance December 31, 2019	24,650,051	$	24,650	$	378,606	$	(81,174)	$	2,187	$	288,653	$	(695)	$	612,227
Net income attributable to Bryn Mawr Bank Corporation	—	—		—		—		—		3,872		—		3,872
Net loss attributable to noncontrolling interest	—	—		—		—		—		—		(32)		(32)
Cumulative-effect adjustment due to the adoption of ASU No. 2016-13	—	—		—		—		—		(2,801)		—		(2,801)
Dividends paid or accrued, $0.52 per share	—	—		—		—		—		(10,559)		—		(10,559)
Other comprehensive income, net of tax expense of $1,816	—	—		—		—		6,832		—		—		6,832
Stock based compensation	—	—		1,513		—		—		—		—		1,513
Retirement of treasury stock	(3,816)	(4)		(41)		45		—		—		—		—
Net purchase of treasury stock from stock awards for statutory tax withholdings	—	—		—		(144)		—		—		—		(144)
Net treasury stock activity for deferred compensation trusts	—	—		—		(90)		—		—		—		(90)
Purchase of treasury stock through publicly announced plans	—	—		—		(7,249)		—		—		—		(7,249)
Common stock issued:
Common stock issued through share-based awards and options exercises	15,926	16		89		—		—		—		—		105
Balance June 30, 2020	24,662,161	$	24,662	$	380,167	$	(88,612)	$	9,019	$	279,165	$	(727)	$	603,674

Page 9

BRYN MAWR BANK CORPORATION AND SUBSIDIARIES

Consolidated Statements of Changes In Shareholders’ Equity - Unaudited

	For the Six Months Ended June 30, 2019
	Shares of Common Stock Issued	Common Stock		Paid-in Capital		Treasury Stock		Accumulated Other Comprehensive (Loss) Income		Retained Earnings		Noncontrolling Interest		Total Shareholders' Equity
Balance December 31, 2018	24,545,348	$	24,545	$	374,010	$	(75,883)	$	(7,513)	$	250,230	$	(685)	$	564,704
Net income attributable to Bryn Mawr Bank Corporation	—	—		—		—		—		26,462		—		26,462
Net loss attributable to noncontrolling interest	—	—		—		—		—		—		(8)		(8)
Dividends paid or accrued, $0.50 per share	—	—		—		—		—		(10,196)		—		(10,196)
Other comprehensive income, net of tax expense of $2,449	—	—		—		—		9,213		—		—		9,213
Stock based compensation	—	—		1,987		—		—		—		—		1,987
Retirement of treasury stock	(2,704)	(3)		(27)		30		—		—		—		—
Net purchase of treasury stock from stock awards for statutory tax withholdings	—	—		—		(45)		—		—		—		(45)
Net treasury stock activity for deferred compensation trusts	—	—		—		(82)		—		—		—		(82)
Purchase of treasury stock through publicly announced plans	—	—		—		(2,603)		—		—		—		(2,603)
Common stock issued:
Common stock issued through share-based awards and options exercises	39,913	41		682		—		—		—		—		723
Balance June 30, 2019	24,582,557	$	24,583	$	376,652	$	(78,583)	$	1,700	$	266,496	$	(693)	$	590,155

The accompanying notes are an integral part of the Unaudited Consolidated Financial Statements.

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 BRYN MAWR BANK CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

Note 1 – Basis of Presentation, Principles of Consolidation, and Significant Accounting Policies

The Unaudited Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”).

The Unaudited Consolidated Financial Statements include the accounts of Bryn Mawr Bank Corporation (“BMBC,” and together with its subsidiaries, the “Corporation”) and its consolidated subsidiaries; BMBC's primary subsidiary is The Bryn Mawr Trust Company (the “Bank”). In connection with the merger of Royal Bancshares of Pennsylvania, Inc. (“RBPI”) with and into BMBC, and the merger of Royal Bank America with and into the Bank (collectively, the "RBPI Merger"), the Corporation acquired two Delaware trusts, Royal Bancshares Capital Trust I and Royal Bancshares Capital Trust II. These two entities are not consolidated per requirements under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 810, “Consolidation” (“ASC Topic 810”). All significant intercompany balances and transactions are eliminated in consolidation and certain prior-period amounts have been reclassified when necessary in order to conform to the current period presentation.

In the opinion of management, all adjustments, which are normal and recurring in nature, necessary for a fair presentation of the consolidated financial position and the results of operations for the interim periods presented have been included. The results of operations for the three and six months ended June 30, 2020 are not necessarily indicative of the results to be expected for any other interim period or for the full year.

In preparing the Unaudited Consolidated Financial Statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the dates of the balance sheets, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.

These Unaudited Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and notes thereto in BMBC’s Annual Report on Form 10-K for the twelve months ended December 31, 2019 (the “2019 Annual Report”). Except as described below, the accounting policies applied in these Unaudited Consolidated Financial Statements are the same as those applied in the 2019 Annual Report.

Updates to Significant Accounting Policies:

A.Allowance for Credit Losses (“ACL”) on Loans and Leases:

The ACL on loans and leases represents management’s estimate of all expected credit losses over the expected contractual life of our existing portfolio loans and leases. Determining the appropriateness of the ACL on loans and leases is complex and requires judgment by management about the effect of matters that are inherently uncertain. Subsequent evaluations of the then-existing loan portfolio, in light of the factors then prevailing, may result in significant changes in the ACL on loans and leases in those future periods.

The expense for credit loss recorded through earnings is the amount necessary to maintain the ACL on loans and leases at the amount of expected credit losses inherent within the loans and leases portfolio. The amount of expense and the corresponding level of ACL on loans and leases are based on management’s evaluation of the collectability of the loan and lease portfolio based on historical loss experience, reasonable and supportable forecasts, and other significant qualitative and quantitative factors. The ACL on loans and leases, as reported in our Consolidated Statements of Financial Condition, is adjusted by an expense for credit losses, which is recognized in earnings, and reduced by the charge-off of loan and lease amounts, net of recoveries. For further information on the ACL on loans and leases, see Note 4 - Loans and Leases in the accompanying Notes to Unaudited Consolidated Financial Statements.

Management employs a disciplined process and methodology to establish the ACL on loans and leases that has two basic components: first, an asset-specific component involving individual loans and leases that do not share risk characteristics with other loans and leases and the measurement of expected credit losses for such individual loans; and second, a collective (pooled) component for estimated expected credit losses for pools of loans and leases that share similar risk characteristics.

Based upon this methodology, management establishes an asset-specific ACL on loans and leases that do not share risk characteristics with other loans and leases based on the amount of expected credit losses calculated on those loans and leases and charges off amounts determined to be uncollectible. Factors we consider in measuring the extent of expected credit loss include payment status, collateral value, borrower financial condition, guarantor support and the probability of collecting scheduled principal and interest payments when due.

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When a loan or lease does not share risk characteristics with other loans or leases, management measures expected credit loss as the difference between the amortized cost basis in the loan and the present value of expected future cash flows discounted at the loan’s effective interest rate except that, for collateral dependent loans, credit loss is measured as the difference between the amortized cost basis in the loan and the fair value of the underlying collateral. The fair value of the collateral is adjusted for the estimated cost to sell if repayment or satisfaction of a loan is dependent on the sale (rather than only on the operation) of the collateral. If the calculated expected credit loss is determined to be permanent, fixed or nonrecoverable, the credit loss portion of the loan will be charged off against the ACL on loans and leases. Loans and leases designated as having significantly increased credit risk are generally placed on nonaccrual and remain in that status until all principal and interest payments are current and the prospects for future payments in accordance with the loan agreement are reasonably assured, at which point the loan is returned to accrual status.

In estimating the component of the ACL on loans and leases that share common risk characteristics, loans and leases are segregated into portfolio segments based on federal call report codes which classify loans and leases based on the primary collateral supporting the loan and lease. Methods utilized by management to estimate expected credit losses include a discounted cash flow (“DCF”) methodology that discounts instrument-level contractual cash flows, adjusted for prepayments and curtailments, incorporating loss expectations, and a weighted average remaining maturity (“WARM”) methodology which contemplates expected losses at a pool-level, utilizing historic loss information.

Under both methodologies, management estimates the ACL on loans and leases using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. After the end of the reasonable and supportable forecast period, the loss rates revert to the long-term mean loss rate, or in the case of an input-driven predictive method, the long-term mean of the input, using a reversion period where applicable. Historical credit loss experience, including examination of loss experience at representative peer institutions when the Corporation’s first-party loss history does not result in estimations that are meaningful to users of the Corporation’s Consolidated Financial Statements, provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are considered for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as for changes in environmental conditions, such as changes in unemployment rates, property values, or other relevant factors.

The DCF methodology uses inputs of current and forecasted macroeconomic indicators to predict future loss rates. The current macroeconomic indicator utilized by the bank is the Pennsylvania unemployment rate. In building the current expected credit loss (“CECL”) model utilized in the DCF methodology, a correlation between this indicator and historic loss levels was developed, enabling a prediction of future loss rates related to future Pennsylvania unemployment rates. The portfolio segments utilizing the DCF methodology as of June 30, 2020 included: CRE - owner-occupied and nonowner-occupied loans, home equity lines of credit, residential mortgages (first and junior liens), construction loans and consumer loans.

The WARM methodology uses combined historic loss rates for the Bank and peer institutions, if necessary, gathered from Call Report filings. The selected period for which historic loss rates are used is dependent on management's evaluation of current conditions and expectations of future loss conditions. The portfolio segments utilizing the WARM methodology as of June 30, 2020 included commercial and industrial loans and leases.

For those loans and leases where the ACL is measured on a collective (pool) basis, management has identified the following portfolio segments based on federal call report codes which classify loans and leases based on the primary collateral supporting the loan or lease:

Commercial Real Estate (“CRE”) Loans (owner-occupied and non-owner occupied): The Bank originates mortgage loans for multifamily properties (i.e. buildings which have five or more residential units) and other commercial real estate that is either owner-occupied or managed as an investment property (non-owner occupied) primarily within Pennsylvania, Delaware and Southern and Central New Jersey. Commercial real estate properties primarily include retail buildings/shopping centers, hotels, office/medical buildings and industrial/warehouse space. Multifamily loans are expected to be repaid from the cash flows of the underlying property so the collective amount of rents must be sufficient to cover all operating expenses, property management and maintenance, taxes and debt service. Increases in vacancy rates, interest rates or other changes in general economic conditions can have an impact on the borrower and its ability to repay the loan. Commercial real estate loans are generally considered to have a higher degree of credit risk than multifamily loans as they may be dependent on the ongoing success and operating viability of a fewer number of tenants who are occupying the property and who may have a greater degree of exposure to economic conditions.

Home equity lines of credit: The Bank originates the majority of its home equity lines of credit through its retail channel. The primary risk characteristics associated with home equity lines of credit typically involve major living or lifestyle changes to the borrower, including unemployment or other loss of income; unexpected significant expenses, such as major medical expenses,

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catastrophic events, divorce and death. Home equity lines of credit are typically originated with variable or floating interest rates, which could expose the borrower to higher payments in a rising interest rate environment. Real estate values could decrease and cause the value of the underlying property to fall below the loan amount, creating additional potential loss exposure for the Bank.

Residential Mortgages secured by first liens: The Bank originates one-to-four family residential mortgage loans primarily within Pennsylvania, Delaware and Southern and Central New Jersey. These loans are secured by first liens on a primary residence or investment property. The primary risk characteristics associated with residential mortgage loans typically involve major living or lifestyle changes to the borrower, including unemployment or other loss of income; unexpected significant expenses, such as major medical expenses, catastrophic events, divorce or death. Residential mortgage loans that have adjustable rates could expose the borrower to higher payments in a rising interest rate environment. Real estate values could decrease and cause the value of the underlying property to fall below the loan amount, creating additional potential loss exposure for the Bank.

Residential Mortgages secured by junior liens: The Bank originates loans secured by junior liens against one to four family properties primarily within Pennsylvania, Delaware and Southern and Central New Jersey. Loans secured by junior liens are primarily in the form of an amortizing home equity loan. These loans are subordinate to a first mortgage which may be from another lending institution. The primary risk characteristics associated with loans secured by junior liens typically involve major living or lifestyle changes to the borrower, including unemployment or other loss of income, unexpected significant expenses, such as for major medical expenses, catastrophic events, divorce or death. Real estate values could decrease and cause the value of the property to fall below the loan amount, creating additional potential loss exposure for the Bank.

Construction: The Bank originates construction loans to finance land development preparatory to erecting new structures or the on-site construction of industrial, commercial, or residential buildings. Construction loans include not only construction of new structures, but also additions or alterations to existing structures and the demolition of existing structures to make way for new structures. Construction loans are generally secured by real estate. The primary risk characteristics are specific to the uncertainty on whether the construction will be completed according to the specifications and schedules. Factors that may influence the completion of construction may be customer specific, such as the quality and depth of property management, or related to changes in general economic conditions.

Commercial & Industrial: The Bank originates lines of credit and term loans to operating companies for business purposes. The loans are generally secured by business assets such as accounts receivable, inventory, business vehicles and equipment as well as the stock of a company, if privately held. Commercial & Industrial loans are typically repaid first by the cash flows generated by the borrower’s business operations. The primary risk characteristics are specific to the underlying business and its ability to generate sustainable profitability and positive cash flow. Factors that may influence a borrower's ability to repay their loan include demand for the business’ products or services, the quality and depth of management, the degree of competition, regulatory changes, and general economic conditions. The ability of the Bank to foreclose and realize sufficient value from business assets securing these loans is often uncertain. To mitigate the risk characteristics of commercial and industrial loans, commercial real estate may be included as a secondary source of collateral. The Bank will often require more frequent reporting requirements from the borrower in order to better monitor its business performance.

Consumer: The Bank originates or lines of credit to individuals for household, family, and other personal expenditures as well as overdrawn customer deposit balances which are reported as loans. This also represents all other loans that cannot be categorized in any of the previous mentioned loan segments. Consumer loans generally have higher interest rates and shorter terms than residential loans but tend to have higher credit risk due to the type of collateral securing the loan or in some cases the absence of collateral.

Leases: The Bank’s wholly-owned subsidiary Bryn Mawr Equipment Financing, Inc. specializes in equipment leases for small- and mid-sized businesses nationally and across a broad range of industries. The Bank’s credit risk generally results from the potential default of borrowers or lessees, which may be driven by customer specific or broader industry related conditions.

Accrued interest receivable on loans and leases, which is reported in Accrued interest receivable on the Consolidated Balance Sheet, totaled $12.5 million as of June 30, 2020 and is excluded from the estimate of credit losses.

B.ACL on Off-Balance Sheet (“OBS”) Credit Exposures

Management estimates expected credit losses over the contractual period in which the Corporation is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Corporation. The ACL on OBS credit exposure, included within Other Liabilities on the Consolidated Balance Sheet, is adjusted as a provision for credit loss expense included within other operating expense on the Consolidated Statement of Income. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be

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funded over its estimated life. Management estimates the amount of expected losses by calculating a commitment usage factor over the contractual period for exposures that are not unconditionally cancellable by the bank and applying the loss factors used in the ACL on loans and leases methodology to the results of the usage calculation to estimate the liability for credit losses related to unfunded commitments for each loan type. No credit loss estimate is reported for OBS credit exposures that are unconditionally cancellable by the Bank.

The ACL on OBS credit exposure as of June 30, 2020 was $3.3 million. For the three months ended June 30, 2020 the Corporation recorded a $867 thousand release of reserves for credit losses on OBS credit exposures. For the six months ended June 30, 2020, the Corporation recorded a $2.1 million provision for credit losses on OBS credit exposures.

C.Troubled Debt Restructurings (“TDRs”)

The Corporation has implemented various consumer and commercial loan modification programs to provide its borrowers relief from the economic impacts of COVID-19. In accordance with the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), loans to borrowers experiencing financial difficulty related to the COVID-19 pandemic which were granted short-term modifications after March 1, 2020 and which were not more than 30 days past due as of December 31, 2019 are exempt from TDR classification. In addition, for loans modified in response to the COVID-19 pandemic that do not meet the above delinquency criteria (e.g., not more than 30 days past due as of December 31, 2019), the Corporation applies the guidance included in an interagency statement issued by the bank regulatory agencies. This guidance states that loan modifications performed in light of the COVID-19 pandemic, including loan payment deferrals that are up to six months in duration, that were granted to borrowers who were less than 30 days past due as of the implementation date of a loan modification program or modifications granted under government mandated modification programs, are also exempt from TDR classification. For loan modifications that include a payment deferral and are not TDRs, the borrower’s past due and nonaccrual status will not be impacted during the deferral period. Interest income will continue to be recognized over the contractual life of the loan. For more information on the Corporation's TDR accounting, see Note 1 – Summary of Significant Accounting Policies to the Consolidated Financial Statements of the Corporation’s 2019 Annual Report.

D.Purchased Credit Deteriorated (“PCD”) Loans and Leases

The Corporation has purchased loans and leases, some of which have experienced more than insignificant credit deterioration since origination. PCD loans are recorded at the amount paid. An ACL is determined using the same methodology as other portfolio loans and leases. The initial ACL determined on a collective basis is allocated to individual loans. The loan’s purchase price is grossed-up by adding the allocated ACL to arrive at its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan or lease is a noncredit discount or premium, which is amortized into interest income over the life of the loan or lease. Subsequent changes to the ACL associated with PCD loans or leases are recorded through provision expense.

E.ACL on Held to Maturity Securities

Management measures expected credit losses on held to maturity debt securities on a collective basis by major security type. The Corporation’s held to maturity debt securities consist of mortgage-backed securities issued by U.S. government entities and agencies. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies and have a long history of no credit losses. With respect to these securities, management considers the history of credit losses, current conditions and reasonable and supportable forecasts, which may indicate that the expectation that nonpayment of the amortized cost basis is or continues to be zero, even if the U.S. government were to default. Therefore, for those securities, the Corporation does not record expected credit losses. Accrued interest receivable on held to maturity debt securities, which is reported in Accrued interest receivable on the Consolidated Balance Sheet, totaled $36 thousand as of June 30, 2020 and is excluded from the estimate of credit losses.

F.ACL on Available for Sale Securities

For available for sale debt securities in an unrealized loss position, management first assesses whether it intends to sell, or it is more likely than not it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For available for sale debt securities that do not meet the aforementioned criteria, management evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any explicit or implicit guarantees by the U.S. government, any changes to the rating of the security by the rating agency, and adverse conditions specifically related to the security, among other factors.

If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit loss is recognized in other comprehensive income.

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Changes in the ACL on available for sale debt securities are recorded as provision for (or release of) credit loss expense. Losses are charged against the ACL on available for sale debt securities when management believes the uncollectibility of an available for sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met.

Accrued interest receivable on available for sale debt securities, which is reported in Accrued interest receivable on the Consolidated Balance Sheet, totaled $1.9 million at June 30, 2020 and is excluded from the estimate of credit losses.

Note 2 – Recent Accounting Pronouncements

The following FASB Accounting Standards Updates (“ASUs”) are divided into pronouncements which have been adopted by the Corporation since January 1, 2020, and those which are not yet effective and have been evaluated or are currently being evaluated by management as of June 30, 2020.

Adopted Pronouncements:

FASB ASU 2016-13 (Topic 326), “Measurement of Credit Losses on Financial Instruments”

On January 1, 2020, the Corporation adopted ASU 2016-13 (Topic 326), “Measurement of Credit Losses on Financial Instruments,” which replaces the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (or CECL) methodology. This standard eliminates the Provision for Loan and Lease Losses and Allowance for Loan and Lease Losses line items and establishes the Provision for Credit Losses (“PCL”) and Allowance for Credit Losses (“ACL”) line items.

The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables and held-to-maturity debt securities. It also applies to OBS credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and net investments in leases recognized by a lessor in accordance with Topic 842 on leases. In addition, ASC 326 made changes to the accounting for available for sale debt securities. One such change is to require credit losses to be presented as an allowance rather than as a write-down on available-for-sale debt securities management does not intend to sell or believes that it is more likely than not they will be required to sell.

The Corporation adopted ASC 326 using the modified retrospective approach method for all financial assets measured at amortized cost and OBS credit exposures. Results for reporting periods beginning after January 1, 2020 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. In conjunction with the adoption of CECL, the Corporation has revised its segmentation to align with the methodology applied in determining the ACL for loans and leases under CECL, which is based on federal call report codes which classify loans based on the primary collateral supporting the loan. Segmentation prior to the adoption of CECL was based on product type or purpose. As such, certain reclassifications were made to conform prior-period amounts to current period presentation.

Upon adoption, the Corporation's total ACL increased by $4.0 million, or 17.5%, which included an increase in ACL on loans and leases of $3.2 million and an increase in the reserve for OBS exposures, which is included within Other Liabilities on the Consolidated Balance Sheet, of $821 thousand. The increase in the total ACL resulted in a $2.8 million decrease to retained earnings, net of deferred taxes. The overall change in total ACL upon adoption was primarily due to the move to a life of loan reserve estimate as well as methodology changes required under CECL.

The Corporation adopted CECL using the prospective transition approach for financial assets purchased with credit deterioration (“PCD”) that were previously classified as purchased credit impaired (“PCI”) and accounted for under ASC 310-30. In accordance with the standard, management did not reassess whether PCI assets met the criteria of PCD assets as of the date of adoption. On January 1, 2020, the amortized cost basis of the PCD assets were adjusted to reflect the addition of $481 thousand of the allowance for credit losses. The remaining noncredit discount (based on the adjusted amortized cost basis) will be accreted into interest income at the effective interest rate as of January 1, 2020.

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The following table illustrates the adoption of CECL on January 1, 2020:

	January 1, 2020
	Pre-CECL Adoption		Reclassification to CECL Portfolio Segmentation		Pre-CECL Adoption Portfolio Segmentation		Post-CECL Adoption Portfolio Segmentation		Impact of CECL Adoption
Assets:
Loans and leases:
Commercial mortgage	$	1,913,430	$	(1,913,430)	$	—	$	—	$	—
CRE - nonowner-occupied	—		1,337,167		1,337,167		1,337,464		297
CRE - owner-occupied	—		527,607		527,607		527,607		—
Home equity lines of credit	194,639		29,623		224,262		224,262		—
Residential mortgage	489,903		(489,903)		—		—		—
Residential mortgage - first liens	—		706,690		706,690		706,843		153
Residential mortgage - junior liens	—		36,843		36,843		36,843		—
Construction	159,867		42,331		202,198		202,198		—
Commercial & Industrial	709,257		(277,030)		432,227		432,248		21
Consumer	57,139		102		57,241		57,241		—
Leases	165,078		—		165,078		165,088		10
Total loans and leases	$	3,689,313	$	—	$	3,689,313	$	3,689,794	$	481
ACL on loans and leases
Commercial mortgage	$	10,434	$	(10,434)	$	—	$	—	$	—
CRE - nonowner-occupied	—		7,960		7,960		7,493		(467)
CRE - owner-occupied	—		2,825		2,825		2,841		16
Home equity lines of credit	890		224		1,114		1,068		(46)
Residential mortgage	1,538		(1,538)		—		—		—
Residential mortgage - first liens	—		2,501		2,501		4,909		2,408
Residential mortgage - junior liens	—		338		338		417		79
Construction	997		233		1,230		871		(359)
Commercial & Industrial	6,029		(2,194)		3,835		3,676		(159)
Consumer	353		85		438		578		140
Leases	2,361		—		2,361		3,955		1,594
Total ACL on loans and leases	$	22,602	$	—	$	22,602	$	25,808	$	3,206
Liabilities:
ACL on OBS credit exposures	$	360	$	—	$	360	$	1,181	$	821
Total ACL	$	22,962	$	—	$	22,962	$	26,989	$	4,027
Retained earnings:
Total increase in ACL									$	4,027
Balance sheet reclassification									(481)
Total pre-tax impact									3,546
Tax effect									(745)
Decrease to retained earnings									$	2,801

FASB ASU 2017-04 (Topic 350), “Intangibles – Goodwill and Others”

Issued in January 2017, ASU 2017-04 simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. ASU 2017-04 became effective for the Corporation on January 1, 2020, and will follow such guidance in connection with our next annual impairment testing, or prior to that if any such change constitutes a triggering event outside of the quarter from when the annual goodwill impairment test is performed. Management does not expect the adoption of this ASU to have a material impact on our Consolidated Financial Statements and related disclosures.

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FASB ASU 2018-13, “Fair Value Measurement Disclosure Framework”

Issued in August 2018, ASU 2018-13 modifies, adds and removes certain disclosures aimed to improve the overall usefulness of the disclosure requirements for fair value measurements. The guidance became effective for the Corporation on January 1, 2020 and the adoption of this ASU did not have a material impact on our Consolidated Financial Statements and related disclosures.

Pronouncements Not Yet Effective:

FASB ASU 2018-14 (Topic 715), “Compensation-Retirement Benefits - Defined Benefit Plans-General”

Issued in August 2018, ASU 2018-14, modifies, adds and removes certain disclosures aimed to improve the overall usefulness of the disclosure requirements to financial statement users. The guidance is effective for annual periods beginning after December 15, 2020. Early adoption is permitted. Use of the retrospective method is required. Management does not expect the adoption of this ASU to have a material impact on our Consolidated Financial Statements and related disclosures.

FASB ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes”

Issued in December 2019, ASU 2019-12 adds new guidance to simplify accounting for income taxes, changes the accounting for certain income tax transactions and makes minor improvements to the codification. The guidance is effective for annual periods beginning after December 15, 2020. Early adoption is permitted. Management does not expect the adoption of this ASU to have a material impact on our Consolidated Financial Statements and related disclosures.

FASB ASU No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting”

Issued in March 2020, ASU No. 2020-04 provides optional guidance to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. Specifically, the guidance permits an entity, when certain criteria are met, to consider amendments to contracts made to comply with reference rate reform to meet the definition of a modification under GAAP. It further allows hedge accounting to be maintained and a one-time transfer or sale of qualifying held-to-maturity securities. The expedients and exceptions provided by the amendments are permitted to be adopted any time through December 31, 2022 and do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for certain optional expedients elected for certain hedging relationships existing as of December 31, 2022. Management is currently evaluating the potential impact of ASU 2020-04 on our Consolidated Financial Statements and related disclosures.

Note 3 – Investment Securities

The amortized cost and fair value of investment securities available for sale as of June 30, 2020 and December 31, 2019 are as follows:

As of June 30, 2020

(dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. Treasury securities	$	100	$	—	$	—	$	100
Obligations of the U.S. government and agencies	113,046		1,120		(17)		114,149
Obligations of state and political subdivisions	4,553		30		—		4,583
Mortgage-backed securities	365,521		12,056		(373)		377,204
Collateralized mortgage obligations	25,171		702		—		25,873
Corporate bonds	8,000		22		—		8,022
Other investment securities	650		—		—		650
Total	$	517,041	$	13,930	$	(390)	$	530,581

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As of December 31, 2019

(dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. Treasury securities	$	500,066	$	35	$	—	$	500,101
Obligations of the U.S. government and agencies	102,179		193		(352)		102,020
Obligations of state and political subdivisions	5,366		13		—		5,379
Mortgage-backed securities	360,977		5,182		(157)		366,002
Collateralized mortgage obligations	31,796		195		(159)		31,832
Other investment securities	650		—		—		650
Total	$	1,001,034	$	5,618	$	(668)	$	1,005,984

The following tables present the aggregate amount of gross unrealized losses as of June 30, 2020 and December 31, 2019 on available for sale investment securities classified according to the amount of time those securities have been in a continuous unrealized loss position:

As of June 30, 2020

	Less than 12 Months				12 Months or Longer				Total
(dollars in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Obligations of the U.S. government and agencies	$	6,005	$	(17)	$	—	$	—	$	6,005	$	(17)
Mortgage-backed securities	32,503		(373)		—		—		32,503		(373)
Total	$	38,508	$	(390)	$	—	$	—	$	38,508	$	(390)

As of December 31, 2019

	Less than 12 Months				12 Months or Longer				Total
(dollars in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Obligations of the U.S. government and agencies	$	48,497	$	(315)	$	7,966	$	(37)	$	56,463	$	(352)
Mortgage-backed securities	33,783		(119)		5,977		(38)		39,760		(157)
Collateralized mortgage obligations	6,978		(67)		10,861		(92)		17,839		(159)
Total	$	89,258	$	(501)	$	24,804	$	(167)	$	114,062	$	(668)

As of June 30, 2020, the Corporation’s available for sale investment securities consisted of 392 securities, 14 of which were in an unrealized loss position.

As of June 30, 2020, management had not made a decision to sell any of the Corporation’s available for sale investment securities in an unrealized loss position, nor did management consider it more likely than not that it would be required to sell such securities before recovery of their amortized cost basis. Management has evaluated available for sale debt securities that are in an unrealized loss position and has determined that the decline in value is unrelated to credit loss and is related to the change in market interest rates since purchase. Factors considered in this evaluation included the extent to which fair value is less than amortized cost, any explicit or implicit guarantees by the U.S. government, any changes to the rating of the security by the rating agency, and adverse conditions specifically related to the security, among other factors. As of June 30, 2020, approximately 97.0% of the Corporation’s available for sale investment securities were U.S. Treasuries or mortgage-backed securities or collateral mortgage obligations which were issued or guaranteed by U.S. government-sponsored entities and agencies. In addition, none of the available for sale debt securities held by the Corporation are past due as of June 30, 2020.

As of June 30, 2020 and December 31, 2019, there were no holdings of securities of any one issuer, other than the U.S. government and its agencies, in an amount greater than 10% of shareholders’ equity.

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As of June 30, 2020 and December 31, 2019, securities having a fair value of $268.2 million and $156.4 million, respectively, were specifically pledged as collateral for public funds, trust deposits, the Federal Reserve Bank of Philadelphia (the “FRB”) discount window program, Federal Home Loan Bank (“FHLB”) borrowings, collateral requirements in derivative contracts, and other purposes. Advances by the FHLB are collateralized by a blanket lien on non-pledged, mortgage-related loans as part of the Corporation’s borrowing agreement with the FHLB as well as certain securities individually pledged by the Corporation.

The amortized cost and fair value of available for sale investment and mortgage-related securities available for sale as of June 30, 2020 and December 31, 2019, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	June 30, 2020				December 31, 2019
(dollars in thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Investment securities:
Due in one year or less	$	2,511	$	2,514	$	504,851	$	504,890
Due after one year through five years	11,808		11,905		38,710		38,623
Due after five years through ten years	102,829		103,479		53,598		53,457
Due after ten years	9,201		9,606		11,102		11,180
Subtotal	126,349		127,504		608,261		608,150
Mortgage-related securities(1)	390,692		403,077		392,773		397,834
Total	$	517,041	$	530,581	$	1,001,034	$	1,005,984

(1) Expected maturities of mortgage-related securities may differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

The amortized cost and fair value of investment securities held to maturity as of June 30, 2020 and December 31, 2019 are as follows:

As of June 30, 2020

(dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Mortgage-backed securities	$	12,592	$	403	$	—	$	12,995

As of December 31, 2019

(dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Mortgage-backed securities	$	12,577	$	104	$	(20)	$	12,661

The Corporation had no held to maturity securities with gross unrealized losses as of June 30, 2020. The following table presents the aggregate amount of gross unrealized losses as of December 31, 2019 on held to maturity securities classified according to the amount of time those securities have been in a continuous unrealized loss position:

As of December 31, 2019

	Less than 12 Months				12 Months or Longer				Total
(dollars in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Mortgage-backed securities	$	3,159	$	(20)	$	—	$	—	$	3,159	$	(20)

As of June 30, 2020, none of the Corporation’s held to maturity investment securities were in an unrealized loss position. The Corporation’s held to maturity debt securities consist of mortgage-backed securities issued by U.S. government entities and agencies. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies and have a long history of no credit losses. With respect to these securities, the bank considers the history of credit

Page 19

losses, current conditions and reasonable and supportable forecasts, which may indicate that the expectation that nonpayment of the amortized cost basis is or continues to be zero, even if the U.S. government were to default. The bank does not record expected credit losses for these securities. Accrued interest receivable on held to maturity debt securities totaled $36 thousand at June 30, 2020 and is excluded from the estimate of credit losses.

The amortized cost and fair value of held to maturity investment securities as of June 30, 2020 and December 31, 2019, by contractual maturity, are shown below:

	June 30, 2020				December 31, 2019
(dollars in thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Mortgage-backed securities(1)	$	12,592	$	12,995	$	12,577	$	12,661

(1) Expected maturities of mortgage-related securities may differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

As of June 30, 2020 and December 31, 2019, the Corporation’s investment securities held in trading accounts totaled $7.8 million and $8.6 million, respectively, and primarily consist of deferred compensation trust accounts which are invested in listed mutual funds whose diversification is at the discretion of the deferred compensation plan participants and rabbi trust accounts established to fund certain unqualified pension obligations. Investment securities held in trading accounts are reported at fair value, with adjustments in fair value reported through income. Changes in the fair value of investments held in the deferred compensation trust accounts create corresponding changes in the liability to the deferred compensation plan participants.

Page 20

Note 4 – Loans and Leases

The loan and lease portfolio consists of loans and leases originated by the Corporation, as well as loans acquired in prior acquisitions. Certain tables in this footnote are presented with a breakdown between originated and acquired loans and leases.

A. The following table details the amortized cost of loans and leases as of the dates indicated:

Loans and Leases
	June 30, 2020						December 31, 2019
(dollars in thousands)	Originated		Acquired		Total Loans and Leases		Originated		Acquired		Total Loans and Leases
Loans held for sale	$	4,116	$	—	$	4,116	$	4,249	$	—	$	4,249
Real estate loans:
Commercial real estate (CRE) - nonowner-occupied	1,252,173		123,731		1,375,904		1,161,815		175,352		1,337,167
Commercial real estate (CRE) - owner-occupied	499,650		43,038		542,688		479,466		48,141		527,607
Home equity lines of credit	182,035		12,732		194,767		209,239		15,023		224,262
Residential mortgage - 1st liens	596,597		98,673		695,270		604,884		101,806		706,690
Residential mortgage - junior liens	32,083		1,561		33,644		34,903		1,940		36,843
Construction	203,833		8,541		212,374		193,307		8,891		202,198
Total real estate loans	2,766,371		288,276		3,054,647		2,683,614		351,153		3,034,767
Commercial & Industrial	451,228		6,301		457,529		425,322		6,905		432,227
Consumer	43,672		90		43,762		54,913		2,328		57,241
Leases	161,619		4,608		166,227		156,967		8,111		165,078
Total portfolio loans and leases	3,422,890		299,275		3,722,165		3,320,816		368,497		3,689,313
Total loans and leases	$	3,427,006	$	299,275	$	3,726,281	$	3,325,065	$	368,497	$	3,693,562
Loans with fixed rates	$	1,298,849	$	165,053	$	1,463,902	$	1,251,762	$	216,269	$	1,468,031
Loans with adjustable or floating rates	2,128,157		134,222		2,262,379		2,073,303		152,228		2,225,531
Total loans and leases	$	3,427,006	$	299,275	$	3,726,281	$	3,325,065	$	368,497	$	3,693,562
Net deferred loan origination fees (costs) included in the above loan table	$	210	$	—	$	210	$	(193)	$	—	$	(193)

B. The following table details the components of net investment in leases:

Components of Net Investment in Leases
	June 30, 2020						December 31, 2019
(dollars in thousands)	Originated		Acquired		Total Leases		Originated		Acquired		Total Leases
Minimum lease payments receivable	$	178,407	$	4,874	$	183,281	$	174,385	$	8,753	$	183,138
Unearned lease income	(23,182)		(346)		(23,528)		(23,641)		(813)		(24,454)
Initial direct costs and deferred fees	6,394		80		6,474		6,223		171		6,394
Total Leases	$	161,619	$	4,608	$	166,227	$	156,967	$	8,111	$	165,078

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C. The following table details the amortized cost of nonperforming loans and leases as of the dates indicated:

Nonperforming Loans and Leases
	June 30, 2020						December 31, 2019
(dollars in thousands)	Originated		Acquired		Total Loans and Leases		Originated		Acquired		Total Loans and Leases
CRE - nonowner-occupied	$	245	$	—	$	245	$	199	$	—	$	199
CRE - owner-occupied	2,937		1,109		4,046		1,523		2,636		4,159
Home equity lines of credit	741		174		915		636		—		636
Residential mortgage - 1st liens	899		13		912		630		1,817		2,447
Residential mortgage - junior liens	72		—		72		83		—		83
Commercial & Industrial	1,642		331		1,973		1,799		381		2,180
Consumer	36		—		36		19		42		61
Leases	190		29		219		747		136		883
Total non-performing loans and leases	$	6,762	$	1,656	$	8,418	$	5,636	$	5,012	$	10,648

D. Age Analysis of Past Due Loans and Leases

The following tables present an aging of all portfolio loans and leases as of the dates indicated:

Payment Status of All Portfolio Loans and Leases
	Accruing Loans and Leases
As of June 30, 2020	30 – 59 Days Past Due		60 – 89 Days Past Due		Over 89 Days Past Due		Total Past Due		Current		Total Accruing Loans and Leases		Nonaccrual Loans and Leases		Total Loans and Leases
(dollars in thousands)
CRE - nonowner-occupied	$	538	$	920	$	—	$	1,458	$	1,374,201	$	1,375,659	$	245	$	1,375,904
CRE - owner-occupied	995		501		—		1,496		537,146		538,642		4,046		542,688
Home equity lines of credit	214		22		—		236		193,616		193,852		915		194,767
Residential mortgage - 1st liens	4,826		153		—		4,979		689,379		694,358		912		695,270
Residential mortgage - junior liens	—		—		—		—		33,572		33,572		72		33,644
Construction	—		—		—		—		212,374		212,374		—		212,374
Commercial & Industrial	12		271		—		283		455,273		455,556		1,973		457,529
Consumer	9		76		—		85		43,641		43,726		36		43,762
Leases	1,337		148		—		1,485		164,523		166,008		219		166,227
Total portfolio loans and leases	$	7,931	$	2,091	$	—	$	10,022	$	3,703,725	$	3,713,747	$	8,418	$	3,722,165

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Payment Status of All Portfolio Loans and Leases
	Accruing Loans and Leases
As of December 31, 2019	30 – 59 Days Past Due		60 – 89 Days Past Due		Over 89 Days Past Due		Total Past Due		Current		Total Accruing Loans and Leases		Nonaccrual Loans and Leases		Total Loans and Leases
(dollars in thousands)
CRE - nonowner-occupied	$	184	$	—	$	—	$	184	$	1,336,784	$	1,336,968	$	199	$	1,337,167
CRE - owner-occupied	2,462		—		—		2,462		520,986		523,448		4,159		527,607
Home equity lines of credit	354		365		—		719		222,907		223,626		636		224,262
Residential mortgage - 1st liens	1,639		388		—		2,027		702,216		704,243		2,447		706,690
Residential mortgage - junior liens	116		—		—		116		36,644		36,760		83		36,843
Construction	—		—		—		—		202,198		202,198		—		202,198
Commercial & Industrial	—		—		—		—		430,047		430,047		2,180		432,227
Consumer	98		140		—		238		56,942		57,180		61		57,241
Leases	857		594		—		1,451		162,744		164,195		883		165,078
Total portfolio loans and leases	$	5,710	$	1,487	$	—	$	7,197	$	3,671,468	$	3,678,665	$	10,648	$	3,689,313

The following tables present an aging of originated portfolio loans and leases as of the dates indicated:

Payment Status of Originated Portfolio Loans and Leases
	Accruing Loans and Leases
As of June 30, 2020	30 – 59 Days Past Due		60 – 89 Days Past Due		Over 89 Days Past Due		Total Past Due		Current		Total Accruing Loans and Leases		Nonaccrual Loans and Leases		Total Loans and Leases
(dollars in thousands)
CRE - nonowner-occupied	$	395	$	—	$	—	$	395	$	1,251,533	$	1,251,928	$	245	$	1,252,173
CRE - owner-occupied	995		383		—		1,378		495,335		496,713		2,937		499,650
Home equity lines of credit	112		22		—		134		181,160		181,294		741		182,035
Residential mortgage - 1st liens	1,007		121		—		1,128		594,570		595,698		899		596,597
Residential mortgage - junior liens	—		—		—		—		32,011		32,011		72		32,083
Construction	—		—		—		—		203,833		203,833		—		203,833
Commercial & Industrial	12		271		—		283		449,303		449,586		1,642		451,228
Consumer	9		76		—		85		43,551		43,636		36		43,672
Leases	1,256		147		—		1,403		160,026		161,429		190		161,619
Total portfolio loans and leases	$	3,786	$	1,020	$	—	$	4,806	$	3,411,322	$	3,416,128	$	6,762	$	3,422,890

Payment Status of Originated Portfolio Loans and Leases
	Accruing Loans and Leases
As of December 31, 2019	30 – 59 Days Past Due		60 – 89 Days Past Due		Over 89 Days Past Due		Total Past Due		Current		Total Accruing Loans and Leases		Nonaccrual Loans and Leases		Total Loans and Leases
(dollars in thousands)
CRE - nonowner-occupied	$	184	$	—	$	—	$	184	$	1,161,432	$	1,161,616	$	199	$	1,161,815
CRE - owner-occupied	2,462		—		—		2,462		475,481		477,943		1,523		479,466
Home equity lines of credit	254		365		—		619		207,984		208,603		636		209,239
Residential mortgage - 1st liens	890		102		—		992		603,262		604,254		630		604,884
Residential mortgage - junior liens	116		—		—		116		34,704		34,820		83		34,903
Construction	—		—		—		—		193,307		193,307		—		193,307
Commercial & Industrial	—		—		—		—		423,523		423,523		1,799		425,322
Consumer	18		88		—		106		54,788		54,894		19		54,913
Leases	781		566		—		1,347		154,873		156,220		747		156,967
Total portfolio loans and leases	$	4,705	$	1,121	$	—	$	5,826	$	3,309,354	$	3,315,180	$	5,636	$	3,320,816

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The following tables present an aging of acquired portfolio loans and leases as of the dates indicated:

Payment Status of Acquired Portfolio Loans and Leases
	Accruing Loans and Leases
As of June 30, 2020	30 – 59 Days Past Due		60 – 89 Days Past Due		Over 89 Days Past Due		Total Past Due		Current		Total Accruing Loans and Leases		Nonaccrual Loans and Leases		Total Loans and Leases
(dollars in thousands)
CRE - nonowner-occupied	$	143	$	920	$	—	$	1,063	$	122,668	$	123,731	$	—	$	123,731
CRE - owner-occupied	—		118		—		118		41,811		41,929		1,109		43,038
Home equity lines of credit	102		—		—		102		12,456		12,558		174		12,732
Residential mortgage - 1st liens	3,819		32		—		3,851		94,809		98,660		13		98,673
Residential mortgage - junior liens	—		—		—		—		1,561		1,561		—		1,561
Construction	—		—		—		—		8,541		8,541		—		8,541
Commercial & Industrial	—		—		—		—		5,970		5,970		331		6,301
Consumer	—		—		—		—		90		90		—		90
Leases	81		1		—		82		4,497		4,579		29		4,608
Total portfolio loans and leases	$	4,145	$	1,071	$	—	$	5,216	$	292,403	$	297,619	$	1,656	$	299,275

Payment Status of Acquired Portfolio Loans and Leases
	Accruing Loans and Leases
As of December 31, 2019	30 – 59 Days Past Due		60 – 89 Days Past Due		Over 89 Days Past Due		Total Past Due		Current		Total Accruing Loans and Leases		Nonaccrual Loans and Leases		Total Loans and Leases
(dollars in thousands)
CRE - nonowner-occupied	$	—	$	—	$	—	$	—	$	175,352	$	175,352	$	—	$	175,352
CRE - owner-occupied	—		—		—		—		45,505		45,505		2,636		48,141
Home equity lines of credit	100		—		—		100		14,923		15,023		—		15,023
Residential mortgage - 1st liens	749		286		—		1,035		98,954		99,989		1,817		101,806
Residential mortgage - junior liens	—		—		—		—		1,940		1,940		—		1,940
Construction	—		—		—		—		8,891		8,891		—		8,891
Commercial & Industrial	—		—		—		—		6,524		6,524		381		6,905
Consumer	80		52		—		132		2,154		2,286		42		2,328
Leases	76		28		—		104		7,871		7,975		136		8,111
Total portfolio loans and leases	$	1,005	$	366	$	—	$	1,371	$	362,114	$	363,485	$	5,012	$	368,497

E. Allowance for Credit Losses (“ACL”) on Loan and Leases

The ACL on loans and leases represents management’s estimate of all expected credit losses over the expected contractual life of our existing portfolio loans and leases. Determining the appropriateness of the ACL on loans and leases is complex and requires judgment by management about the effect of matters that are inherently uncertain. Subsequent evaluations of the then-existing loan portfolio, in light of the factors then prevailing, may result in significant changes in the ACL on loans and leases in those future periods.

The expense for credit loss recorded through earnings is the amount necessary to maintain the ACL on loans and leases at the amount of expected credit losses inherent within the loans and leases portfolio. The amount of expense and the corresponding level of ACL on loans and leases are based on management’s evaluation of the collectability of the loan and lease portfolio based on historical loss experience, reasonable and supportable forecasts, and other significant qualitative and quantitative factors. The ACL on loans and leases, as reported in our Consolidated Statements of Financial Condition, is adjusted by an expense for credit losses, which is recognized in earnings, and reduced by the charge-off of loan and lease amounts, net of recoveries.

Management employs a disciplined process and methodology to establish the ACL on loans and leases that has two basic components: first, an asset-specific component involving individual loans and leases that do not share risk characteristics with other loans and leases

Page 24

and the measurement of expected credit losses for such individual loans; and second, a collective (pooled) component for estimated expected credit losses for pools of loans and leases that share similar risk characteristics.

Based upon this methodology, management establishes an asset-specific ACL on loans and leases that do not share risk characteristics with other loans and leases based on the amount of expected credit losses calculated on those loans and leases and charges off amounts determined to be uncollectible. Factors we consider in measuring the extent of expected credit loss include payment status, collateral value, borrower financial condition, guarantor support and the probability of collecting scheduled principal and interest payments when due.

When a loan or lease does not share risk characteristics with other loans or leases, management measures expected credit loss as the difference between the amortized cost basis in the loan and the present value of expected future cash flows discounted at the loan’s effective interest rate except that, for collateral dependent loans, credit loss is measured as the difference between the amortized cost basis in the loan and the fair value of the underlying collateral. The fair value of the collateral is adjusted for the estimated cost to sell if repayment or satisfaction of a loan is dependent on the sale (rather than only on the operation) of the collateral. If the calculated expected credit loss is determined to be permanent, fixed or nonrecoverable, the credit loss portion of the loan will be charged off against the ACL on loans and leases. Loans and leases designated as having significantly increased credit risk are generally placed on nonaccrual and remain in that status until all principal and interest payments are current and the prospects for future payments in accordance with the loan agreement are reasonably assured, at which point the loan is returned to accrual status.

In estimating the component of the ACL on loans and leases that share common risk characteristics, loans and leases are segregated into portfolio segments based on federal call report codes which classify loans and leases based on the primary collateral supporting the loan and lease. Methods utilized by management to estimate expected credit losses include a DCF methodology that discounts instrument-level contractual cash flows, adjusted for prepayments and curtailments, incorporating loss expectations, and a WARM methodology which contemplates expected losses at a pool-level, utilizing historic loss information.

Under both methodologies, management estimates the ACL on loans and leases using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. After the end of the reasonable and supportable forecast period, the loss rates revert to the long-term mean loss rate, or in the case of an input-driven predictive method, the long-term mean of the input, using a reversion period where applicable. Historical credit loss experience, including examination of loss experience at representative peer institutions when the Corporation’s first-party loss history does not result in estimations that are meaningful to users of the Corporation’s Consolidated Financial Statements, provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are considered for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as for changes in environmental conditions, such as changes in unemployment rates, property values, or other relevant factors.

The DCF methodology uses inputs of current and forecasted macroeconomic indicators to predict future loss rates. The current macroeconomic indicator utilized by the bank is the Pennsylvania unemployment rate. In building the CECL model utilized in the DCF methodology, a correlation between this indicator and historic loss levels was developed, enabling a prediction of future loss rates related to future Pennsylvania unemployment rates. The portfolio segments utilizing the DCF methodology as of June 30, 2020 included: CRE - owner-occupied and nonowner-occupied loans, home equity lines of credit, residential mortgages (first and junior liens), construction loans and consumer loans.

The WARM methodology uses combined historic loss rates for the Bank and peer institutions, if necessary, gathered from Call Report filings. The selected period for which historic loss rates are used is dependent on management's evaluation of current conditions and expectations of future loss conditions. The portfolio segments utilizing the WARM methodology as of June 30, 2020 included commercial and industrial loans and leases.

For the three months ended June 30, 2020, there was a significant change in the economic outlook impacting the ACL on loans and leases. Our CECL model included a sharp deterioration in the Pennsylvania unemployment rate, to levels observed during the last recessionary period, projected to be sustained in the third and fourth quarters of 2020, with a reversion to a long-term 15-year average.

In addition to these assumptions, management applied additional qualitative factors related to the loss mitigation expected to be provided by the various governmental aid programs, such as increased unemployment benefits, stimulus payments, and the SBA's Paycheck Protection Program, as well as the Bank's loan payment deferral programs being offered to borrowers which provide a three- or six-month payment deferral to borrowers affected by the COVID-19 pandemic. These qualitative factors were applied to all segments of the portfolio except the construction segment and the retail and hospitality sectors of the nonowner-occupied CRE segment, due to the significant expected impact on these specific segments and sectors from the economic shutdown, such as government mandated stay at home orders and closure of non-essential businesses.

Page 25

The following tables present the activity in the ACL on loans and leases, by portfolio segment, for the three and six months ended June 30, 2020 and 2019:

Roll-Forward of ACL on Loans and Leases

(dollars in thousands)	CRE - nonowner-occupied		CRE - owner-occupied		Home equity lines of credit		Residential mortgage - 1st liens		Residential mortgage - junior liens		Construction		Commercial & Industrial		Consumer		Leases		Total
Balance, March 31, 2020	$	13,329	$	4,192	$	2,748	$	8,316	$	517	$	6,984	$	8,734	$	341	$	8,909	$	54,070
Loans and leases charged-off	—		(1,234)		—		(556)		—		—		(522)		(296)		(1,443)		(4,051)
Recoveries collected	4		—		4		136		—		1		22		57		428		652
PCL on loans and leases	1,998		2,125		(1,125)		302		4		(924)		(246)		338		1,831		4,303
Balance, June 30, 2020	$	15,331	$	5,083	$	1,627	$	8,198	$	521	$	6,061	$	7,988	$	440	$	9,725	$	54,974

Roll-Forward of ACL on Loans and Leases

(dollars in thousands)	CRE - nonowner-occupied		CRE - owner-occupied		Home equity lines of credit		Residential mortgage - 1st liens		Residential mortgage - junior liens		Construction		Commercial & Industrial		Consumer		Leases		Total
Balance, December 31, 2019 Prior to Adoption of ASC 326	$	7,960	$	2,825	$	1,114	$	2,501	$	338	$	1,230	$	3,835	$	438	$	2,361	$	22,602
Impact of Adopting ASC 326	(467)		16		(46)		2,408		79		(359)		(159)		140		1,594		3,206
Loans and leases charged-off	—		(1,233)		(114)		(1,284)		—		—		(1,149)		(590)		(4,069)		(8,439)
Recoveries collected	6		—		4		137		—		2		37		90		692		968
PCL on loans and leases	7,832		3,475		669		4,436		104		5,188		5,424		362		9,147		36,637
Balance, June 30, 2020	$	15,331	$	5,083	$	1,627	$	8,198	$	521	$	6,061	$	7,988	$	440	$	9,725	$	54,974

Roll-Forward of ACL on Loans and Leases

(dollars in thousands)	CRE - nonowner-occupied		CRE - owner-occupied		Home equity lines of credit		Residential mortgage - 1st liens		Residential mortgage - junior liens		Construction		Commercial & Industrial		Consumer		Leases		Total
Balance, March 31, 2019	$	6,308	$	2,740	$	1,222	$	2,634	$	350	$	1,372	$	3,507	$	439	$	2,044	$	20,616
Loans and leases charged-off	—		—		(211)		(341)		(56)		—		(20)		(127)		(624)		(1,379)
Recoveries collected	5		—		83		2		4		1		37		7		179		318
PCL on loans and leases	520		(80)		158		349		45		(93)		58		20		650		1,627
Balance, June 30, 2019	$	6,833	$	2,660	$	1,252	$	2,644	$	343	$	1,280	$	3,582	$	339	$	2,249	$	21,182

Roll-Forward of ACL on Loans and Leases
(dollars in thousands)	CRE - nonowner-occupied		CRE - owner-occupied		Home equity lines of credit		Residential mortgage - 1st liens		Residential mortgage - junior liens		Construction		Commercial & Industrial		Consumer		Leases		Total
Balance, December 31, 2018	$	5,856	$	2,454	$	1,140	$	2,561	$	364	$	1,715	$	3,166	$	303	$	1,867	$	19,426
Loans and leases charged-off	(1,515)		—		(313)		(682)		(56)		—		(217)		(247)		(1,192)		(4,222)
Recoveries collected	7		—		84		15		4		2		45		25		433		615
PCL on loans and leases	2,485		206		341		750		31		(437)		588		258		1,141		5,363
Balance, June 30, 2019	$	6,833	$	2,660	$	1,252	$	2,644	$	343	$	1,280	$	3,582	$	339	$	2,249	$	21,182

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As part of the process of determining the ACL for the different segments of the loan and lease portfolio, management considers certain credit quality indicators. Periodic reviews of loans are conducted by both in-house staff as well as external loan reviewers. The result of these reviews is reflected in the risk grade assigned to each loan. These internally assigned grades are as follows:

•Pass – Loans considered satisfactory with no indications of deterioration.

•Pass-Watch – Loans that are performing, but which may have a potential deficiency which the borrower appears to be managing or a possible deficiency in the future.

•Special mention – Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.

•Substandard – Loans classified as substandard are inadequately protected by the current net worth and payment capacity of the obligor or of the collateral pledged, if any. Substandard loans have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

•Doubtful – Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

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The following table details the amortized cost of portfolio loans and leases, by year of origination (for term loans) and by risk grade within each portfolio segment as of June 30, 2020:

		Term Loans												Revolving Loans
		Amortized Cost Basis by Origination Year(1)												Amortized Cost Basis
(dollars in thousands)	Risk Rating	2020		2019		2018		2017		2016		2015 and Prior		Revolving Lines of Credit		Revolving Lines of Credit Converted to Term Loans		Total
CRE - nonowner-occupied	Pass	$	171,485	$	454,690	$	192,252	$	124,010	$	120,715	$	140,138	$	32,668	$	—	$	1,235,958
	Pass-Watch	332		676		2,963		—		1,686		2,455		—		—		8,112
	Special Mention	17,817		—		10,931		—		—		—		—		—		28,748
	Substandard	2,443		33,386		11,868		4,780		43,235		7,374		—		—		103,086
	Total	$	192,077	$	488,752	$	218,014	$	128,790	$	165,636	$	149,967	$	32,668	$	—	$	1,375,904
CRE - owner-occupied	Pass	$	73,670	$	111,679	$	109,629	$	87,028	$	51,683	$	50,568	$	13,430	$	—	$	497,687
	Pass-Watch	4,914		1,786		—		—		2,401		1,747		441		—		11,289
	Special Mention	3,367		434		3,698		—		—		879		50		—		8,428
	Substandard	3,153		6,746		7,597		860		5,907		858		163		—		25,284
	Total	$	85,104	$	120,645	$	120,924	$	87,888	$	59,991	$	54,052	$	14,084	$	—	$	542,688
Home equity lines of credit	Pass	$	98	$	887	$	332	$	123	$	276	$	2,777	$	184,201	$	4,327	$	193,021
	Special Mention	—		—		—		—		—		—		—		—		—
	Substandard	831		251		195		58		—		352		59		—		1,746
	Total	$	929	$	1,138	$	527	$	181	$	276	$	3,129	$	184,260	$	4,327	$	194,767
Residential mortgage - 1st liens	Pass	$	62,318	$	135,324	$	91,917	$	87,672	$	77,890	$	228,862	$	1,135	$	—	$	685,118
	Pass-Watch	505		—		—		—		—		265		—		—		770
	Special Mention	—		—		—		—		—		7,505		—		—		7,505
	Substandard	—		86		689		26		977		99		—		—		1,877
	Total	$	62,823	$	135,410	$	92,606	$	87,698	$	78,867	$	236,731	$	1,135	$	—	$	695,270
Residential mortgage - junior liens	Pass	$	1,825	$	5,056	$	9,251	$	4,371	$	3,412	$	9,425	$	177	$	—	$	33,517
	Substandard	55		—		—		—		36		36		—		—		127
	Total	$	1,880	$	5,056	$	9,251	$	4,371	$	3,448	$	9,461	$	177	$	—	$	33,644
Construction	Pass	$	85,546	$	66,421	$	25,739	$	10,134	$	—	$	5,079	$	13,033	$	—	$	205,952
	Pass-Watch	—		—		—		—		—		—		—		—		—
	Substandard	6,422		—		—		—		—		—		—		—		6,422
	Total	$	91,968	$	66,421	$	25,739	$	10,134	$	—	$	5,079	$	13,033	$	—	$	212,374
Commercial & Industrial	Pass	$	87,861	$	70,042	$	70,867	$	15,637	$	30,559	$	23,068	$	104,645	$	—	$	402,679
	Pass-Watch	10,564		7,656		205		3,492		305		916		6,486		—		29,624
	Special Mention	532		—		4,685		212		—		1,127		3,934		—		10,490
	Substandard	1,774		1,962		3,298		1,531		1,307		3,119		1,745		—		14,736
	Total	$	100,731	$	79,660	$	79,055	$	20,872	$	32,171	$	28,230	$	116,810	$	—	$	457,529
Consumer	Pass	$	1,154	$	4,817	$	2,554	$	379	$	32	$	235	$	33,401	$	—	$	42,572
	Substandard	1,154		18		6		12		—		—		—		—		1,190
	Total	$	2,308	$	4,835	$	2,560	$	391	$	32	$	235	$	33,401	$	—	$	43,762
Leases	Pass	$	34,974	$	69,578	$	45,476	$	12,391	$	3,163	$	426	$	—	$	—	$	166,008
	Substandard	—		69		66		68		16		—		—		—		219
	Total	$	34,974	$	69,647	$	45,542	$	12,459	$	3,179	$	426	$	—	$	—	$	166,227
Total portfolio loans and leases		$	572,794	$	971,564	$	594,218	$	352,784	$	343,600	$	487,310	$	395,568	$	4,327	$	3,722,165

(1) Year originated or renewed, whichever is more recent.

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The following tables present the amortized cost basis of loans and leases on nonaccrual status and loans and leases past due over 89 days still accruing as of the dates indicated:

As of June 30, 2020
(dollars in thousands)	Nonaccrual with No ACL		Nonaccrual with ACL		Loans Past Due Over 89 Days Still Accruing
CRE - nonowner-occupied	$	245	$	—	$	—
CRE - owner-occupied	4,046		—		—
Home equity lines of credit	915		—		—
Residential mortgage - 1st liens	912		—		—
Residential mortgage - junior liens	72		—		—
Construction	—		—		—
Commercial & Industrial	1,973		—		—
Consumer	—		36		—
Leases	—		219		—
Total non-performing loans and leases	$	8,163	$	255	$	—

As of December 31, 2019
(dollars in thousands)	Nonaccrual with No ACL		Nonaccrual with ACL		Loans Past Due Over 89 Days Still Accruing
CRE - nonowner-occupied	$	199	$	—	$	—
CRE - owner-occupied	4,159		—		—
Home equity lines of credit	636		—		—
Residential mortgage - 1st liens	2,447		—		—
Residential mortgage - junior liens	83		—		—
Construction	—		—		—
Commercial & Industrial	2,180		—		—
Consumer	42		19		—
Leases	—		883		—
Total non-performing loans and leases	$	9,746	$	902	$	—

For the three months ended June 30, 2020, $78 thousand of interest income was recognized on nonaccrual loans and leases.

Collateral-dependent loans and leases for which the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the sale of the collateral are, in general, individually evaluated for credit losses. Identified shortfalls between the amortized cost of the individually evaluated loan or lease and the value, less selling costs, of the underlying collateral are charged against the ACL. In certain cases, when the loan or lease is serviced by a third-party, and management is unable to process a timely charge-down of the loan or lease, it will assess a specific ACL to the individual loan or lease. This ACL represents the shortfall between the amortized cost and realizable value of the collateral.

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The following tables present the amortized cost basis of collateral-dependent loans and leases, indicating the type of collateral and the ACL determined through individual evaluation for credit loss, as of the dates indicated:

As of June 30, 2020
(dollars in thousands)	Real Estate Collateral		Non-Real Estate Collateral		Individually Evaluated ACL
CRE - nonowner-occupied	$	245	$	—	$	—
CRE - owner-occupied	4,046		—		—
Home equity lines of credit	915		—		—
Residential mortgage - 1st liens	912		—		—
Residential mortgage - junior liens	72		—		—
Construction	—		—		—
Commercial & Industrial	—		1,973		—
Consumer	—		36		36
Leases	—		219		165
Total collateral-dependent loans and leases	$	6,190	$	2,228	$	201

As of December 31, 2019
(dollars in thousands)	Real Estate Collateral		Non-Real Estate Collateral		Individually Evaluated ACL
CRE - nonowner-occupied	$	199	$	—	$	—
CRE - owner-occupied	4,159		—		—
Home equity lines of credit	636		—		—
Residential mortgage - 1st liens	2,447		—		—
Residential mortgage - junior liens	83		—		—
Construction	—		—		—
Commercial & Industrial	—		2,180		—
Consumer	—		61		19
Leases	—		883		60
Total collateral-dependent loans and leases	$	7,524	$	3,124	$	79

F. Troubled Debt Restructurings (“TDRs”)

The restructuring of a loan is considered a “troubled debt restructuring” if both of the following conditions are met: (i) the borrower is experiencing financial difficulties, and (ii) the creditor has granted a concession. The most common concessions granted include one or more modifications to the terms of the debt, such as (a) a reduction in the interest rate for the remaining life of the debt, (b) an extension of the maturity date at an interest rate lower than the current market rate for new debt with similar risk, (c) a temporary period of interest-only payments, (d) a reduction in the contractual payment amount for either a short period or remaining term of the loan, and (e) for leases, a reduced lease payment. A less common concession granted is the forgiveness of a portion of the principal.

The determination of whether a borrower is experiencing financial difficulties takes into account not only the current financial condition of the borrower, but also the potential financial condition of the borrower, were a concession not granted. Similarly, the determination of whether a concession has been granted is very subjective in nature. For example, simply extending the term of a loan at its original interest rate or even at a higher interest rate could be interpreted as a concession unless the borrower could readily obtain similar credit terms from a different lender.

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The following table presents the balance of TDRs as of the indicated dates:

Troubled Debt Restructurings(1)
(dollars in thousands)	June 30, 2020		December 31, 2019
TDRs included in nonperforming loans and leases	$	1,792	$	3,018
TDRs in compliance with modified terms	10,013		5,071
Total TDRs	$	11,805	$	8,089

(1) The Corporation began entering into loan modifications with borrowers in response to the COVID-19 pandemic, which have not been  classified as TDRs, and therefore are not included in the above table. For more information on the criteria for classifying loans as TDRs, see Note 1 – Basis of Presentation, Principles of Consolidation, and Significant Accounting Policies to the Unaudited Consolidated Financial Statements.

The following tables present information regarding loan and lease modifications categorized as TDRs for the three and six months ended June 30, 2020: 

Troubled Debt Restructurings(1)
	For the Three Months Ended June 30, 2020
(dollars in thousands)	Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
CRE - nonowner-occupied	2	$	1,818	$	1,818
Residential mortgage - 1st liens	1	200		200
Construction	4	3,419		3,419
Leases	6	141		141
Total	13	$	5,578	$	5,578

Troubled Debt Restructurings(1)
	For the Six Months Ended June 30, 2020
(dollars in thousands)	Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
CRE - nonowner-occupied	2	$	1,818	$	1,818
Residential mortgage - 1st liens	1	200		200
Construction	4	3,419		3,419
Leases	6	141		141
Total	13	$	5,578	$	5,578

(1) The Corporation began entering into loan modifications with borrowers in response to the COVID-19 pandemic, which have not been  classified as TDRs, and therefore are not included in the above table. For more information on the criteria for classifying loans as TDRs, see Note 1 – Basis of Presentation, Principles of Consolidation, and Significant Accounting Policies to the Unaudited Consolidated Financial Statements.

Page 31

The following table presents information regarding the types of loan and lease modifications made for the three and six months ended June 30, 2020:

Troubled Debt Restructurings(1)
	Number of Contracts for the Three Months Ended June 30, 2020
	Loan Term Extension	Interest Rate Change and Term Extension	Interest Rate Change and/or Interest-Only Period	Contractual Payment Reduction (Leases only)	Temporary Payment Deferral
CRE - nonowner-occupied	—	—	—	—	2
Residential mortgage - 1st liens	1	—	—	—	—
Construction	—	—	—	—	4
Leases	—	—	—	6	—
Total	1	—	—	6	6

Troubled Debt Restructurings(1)
	Number of Contracts for the Six Months Ended June 30, 2020
	Loan Term Extension	Interest Rate Change and Term Extension	Interest Rate Change and/or Interest-Only Period	Contractual Payment Reduction (Leases only)	Temporary Payment Deferral
CRE - nonowner-occupied	—	—	—	—	2
Residential mortgage - 1st liens	1	—	—	—	—
Construction	—	—	—	—	4
Leases	—	—	—	6	—
Total	1	—	—	6	6

(1) The Corporation began entering into loan modifications with borrowers in response to the COVID-19 pandemic, which have not been  classified as TDRs, and therefore are not included in the above table. For more information on the criteria for classifying loans as TDRs, see Note 1 – Basis of Presentation, Principles of Consolidation, and Significant Accounting Policies to the Unaudited Consolidated Financial Statements.

For the six months ended June 30, 2020, two residential mortgage loans, in the aggregate amount of $228 thousand, and one commercial and industrial loan in the amount of $477 thousand that were modified as a TDR during the past 12 months defaulted and were charged off.

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Note 5 – Mortgage Servicing Rights

The following table summarizes the Corporation’s activity related to mortgage servicing rights (“MSRs”) for the three and six months ended June 30, 2020 and 2019:

	Three Months Ended June 30,
(dollars in thousands)	2020		2019
Balance, beginning of period	$	4,115	$	4,910
Additions	—		—
Amortization	(453)		(156)
Impairment	(222)		(10)
Balance, end of period	$	3,440	$	4,744
Fair value	$	3,440	$	5,175
Residential mortgage loans serviced for others	$	445,233	$	545,743

	Six Months Ended June 30,
(dollars in thousands)	2020		2019
Balance, beginning of period	$	4,450	$	5,047
Additions	—		—
Amortization	(557)		(276)
Impairment	(453)		(27)
Balance, end of period	$	3,440	$	4,744

As of June 30, 2020, and December 31, 2019, key economic assumptions and the sensitivity of the current fair value of MSRs to immediate 10% and 20% adverse changes in those assumptions are as follows:

(dollars in thousands)	June 30, 2020			December 31, 2019
Fair value amount of MSRs	$	3,440		$	4,838
Weighted average life (in years)	4.7			6.0
Prepayment speeds (constant prepayment rate)(1)	14.4		%	10.5		%
Impact on fair value:
10% adverse change	$	(151)		$	(149)
20% adverse change	(292)			(297)
Discount rate	9.56		%	9.55		%
Impact on fair value:
10% adverse change	$	(88)		$	(166)
20% adverse change	(172)			(321)

(1) Represents the weighted average prepayment rate for the life of the MSR asset.

At June 30, 2020 and December 31, 2019, the fair value of the MSRs was $3.4 million and $4.8 million, respectively. The fair value of the MSRs for these dates was determined using values obtained from a third party which utilizes a valuation model which calculates the present value of estimated future servicing income. The model incorporates assumptions that market participants use in estimating future net servicing income, including estimates of prepayment speeds and discount rates. Mortgage loan prepayment speed is the annual rate at which borrowers are forecasted to repay their mortgage loan principal and is based on historical experience. The discount rate is used to determine the present value of future net servicing income. Another key assumption in the model is the required rate of return the market would expect for an asset with similar risk. These assumptions can, and generally will, change quarterly valuations as market conditions and interest rates change. Management reviews, annually, the process utilized by its independent third-party valuation experts.

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These assumptions and sensitivities are hypothetical and should be used with caution. As the figures indicate, changes in fair value based on a 10% variation in assumptions generally cannot be extrapolated because the relationship of the change in assumptions to the change in fair value may not be linear. Also, the effect of a variation in a particular assumption on the fair value of the MSRs is calculated without changing any other assumption. In reality, changes in one factor may result in changes in another, which could magnify or counteract the sensitivities.

Note 6 – Goodwill and Intangible Assets

The following table presents activity in the Corporation's goodwill by its reporting units and finite-lived and indefinite-lived intangible assets, other than MSRs, for the six months ended June 30, 2020:

(dollars in thousands)	Balance December 31, 2019		Additions		Amortization		Balance June 30, 2020		Amortization Period
Goodwill – Wealth	$	20,412	$	—	$	—	$	20,412	Indefinite
Goodwill – Banking	156,991		—		—		156,991		Indefinite
Goodwill – Insurance	6,609		—		—		6,609		Indefinite
Total Goodwill	184,012		—		—		184,012
Core deposit intangible	4,598		—		(584)		4,014		10 years
Customer relationships	11,820		—		(906)		10,914		5 to 20 years
Non-compete agreements	911		—		(94)		817		5 to 10 years
Trade name	1,651		—		(244)		1,407		3 to 5 years
Domain name	151		—		—		151		Indefinite
Total Intangible Assets	19,131		—		(1,828)		17,303
Total Goodwill and Intangible Assets	$	203,143	$	—	$	(1,828)	$	201,315

Management conducted its annual impairment tests for goodwill and indefinite-lived intangible assets as of October 31, 2019 using generally accepted valuation methods. Management determined that no impairment of goodwill or indefinite-lived intangible assets was identified as a result of the annual impairment analyses. Future impairment testing will be conducted each October 31, unless a triggering event occurs in the interim that would suggest possible impairment, in which case it would be tested as of the date of the triggering event. For the five months ended June 30, 2020, management determined there were no events that would necessitate impairment testing of goodwill or indefinite-lived intangible assets. Management continues to monitor the economic environment as impacted by the COVID-19 pandemic in the markets we serve and resulting effect on the Corporation's long-term forecast.

Note 7 – Deposits

The following table details the components of deposits:

(dollars in thousands)	June 30, 2020		December 31, 2019
Interest-bearing demand	$	910,441	$	944,915
Money market	1,239,523		1,106,478
Savings	249,636		220,450
Retail time deposits	400,186		405,123
Wholesale non-maturity deposits	146,463		177,865
Wholesale time deposits	79,903		89,241
Total interest-bearing deposits	3,026,152		2,944,072
Noninterest-bearing deposits	1,217,496		898,173
Total deposits	$	4,243,648	$	3,842,245

Page 34

Note 8 – Short-Term Borrowings and Long-Term FHLB Advances

A. Short-term borrowings

The Corporation’s short-term borrowings (original maturity of one year or less), which consist of funds obtained from overnight repurchase agreements with commercial customers, FHLB advances with original maturities of one year or less and overnight fed funds, are detailed below.

A summary of short-term borrowings is as follows:

(dollars in thousands)	June 30, 2020		December 31, 2019
Repurchase agreements(1) – commercial customers	$	28,891	$	10,819
Short-term FHLB advances	—		482,400
Total short-term borrowings	$	28,891	$	493,219

(1) Overnight repurchase agreements with no expiration date

The following table sets forth information concerning short-term borrowings:

	Three Months Ended June 30,						Six Months Ended June 30,
(dollars in thousands)	2020			2019			2020			2019
Balance at period-end	$	28,891		$	207,828		$	28,891		$	207,828
Maximum amount outstanding at any month end	174,431			207,828			174,431			207,828
Average balance outstanding during the period	136,816			68,529			138,700			112,844
Weighted-average interest rate:
As of the period-end	0.10		%	2.33		%	0.10		%	2.33		%
Paid during the period	0.68		%	2.09		%	0.99		%	2.32		%

Average balances outstanding during the year represent daily average balances and average interest rates represent interest expense divided by the related average balance.

B. Long-term FHLB Advances

As of June 30, 2020 and December 31, 2019, the Corporation had $44.8 million and $52.3 million, respectively, of long-term FHLB advances (original maturities exceeding one year).

The following table presents the remaining periods until maturity of long-term FHLB advances:

(dollars in thousands)	June 30, 2020		December 31, 2019
Within one year	$	4,861	$	12,363
Over one year through five years	39,976		39,906
Total	$	44,837	$	52,269

The following table presents rate and maturity information on FHLB advances and other borrowings: 

	Maturity Range(1)		Weighted Average Rate(1)		Coupon Rate(1)				Balance at
Description	From	To			From		To		June 30, 2020		December 31, 2019
Bullet maturity – fixed rate	12/9/2020	11/12/2021	1.73	%	1.40	%	2.13	%	$	44,837	$	52,269

(1) Maturity range, weighted average rate and coupon rate range refers to June 30, 2020 balances.

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C. Other Borrowings Information

In connection with its FHLB borrowings, the Corporation is required to hold the capital stock of the FHLB. The amount of capital stock held was $4.5 million at June 30, 2020, and $23.7 million at December 31, 2019. The carrying amount of the FHLB stock approximates its redemption value.

The level of required investment in FHLB stock is based on the balance of outstanding borrowings the Corporation has from the FHLB. Although FHLB stock is a financial instrument that represents an equity interest in the FHLB, it does not have a readily determinable fair value. FHLB stock is generally viewed as a long-term investment. Accordingly, when evaluating FHLB stock for impairment, its value should be determined based on the ultimate recoverability of the par value rather than by recognizing temporary declines in value.

The Corporation had a maximum borrowing capacity with the FHLB of $1.83 billion as of June 30, 2020 of which the unused capacity was $1.78 billion. In addition, there were $74.0 million in the overnight federal funds line available and $166.8 million of FRB discount window capacity.

Note 9 – Subordinated Notes

On December 13, 2017, BMBC completed the issuance of $70.0 million in aggregate principal amount of fixed-to-floating rate subordinated notes due 2027 (the “2027 Notes”) in an underwritten public offering. On August 6, 2015, BMBC completed the issuance of $30.0 million in aggregate principal amount of fixed-to-floating rate subordinated notes due 2025 (the “2025 Notes”) in a private placement transaction to institutional accredited investors. The net proceeds of both offerings increased Tier II regulatory capital at BMBC.

The following tables detail the subordinated notes, including debt issuance costs, as of June 30, 2020, and December 31, 2019:

	June 30, 2020				December 31, 2019
(dollars in thousands)	Balance		Rate(1)(2)		Balance		Rate(1)(2)
Subordinated notes – due 2027	$	69,071	4.25	%	$	69,009	4.25	%
Subordinated notes – due 2025	29,723		4.75		29,696		4.75
Total subordinated notes	$	98,794			$	98,705

(1) The 2027 Notes bear interest at an annual fixed rate of 4.25% from the date of issuance until and including December 14, 2022, and will thereafter bear interest at a variable rate that will reset quarterly to a level equal to the then-current three-month LIBOR rate plus 2.050% until December 15, 2027, or any early redemption date.

(2) The 2025 Notes bear interest at an annual fixed rate of 4.75% from the date of issuance until and including August 14, 2020, and will thereafter bear interest at a variable rate that will reset quarterly to a level equal to the then-current three-month LIBOR rate plus 3.068% until August 15, 2025, or any early redemption date.

Note 10 – Junior Subordinated Debentures

In connection with the RBPI Merger, BMBC acquired Royal Bancshares Capital Trust I (“Trust I”) and Royal Bancshares Capital Trust II (“Trust II”) (collectively, the “Trusts”), which were utilized for the sole purpose of issuing and selling capital securities representing preferred beneficial interests. Although BMBC owns an aggregate of $774 thousand of the common securities of Trust I and Trust II, the Trusts are not consolidated into the Corporation’s Consolidated Financial Statements as the Corporation is not deemed to be the primary beneficiary of these entities. In connection with the issuance and sale of the capital securities, RBPI issued, and the Corporation assumed as a result of the RBPI Merger, junior subordinated debentures to the Trusts of $10.7 million each, totaling $21.4 million representing the Corporation’s maximum exposure to loss. The junior subordinated debentures incur interest at a coupon rate of 2.46% as of June 30, 2020. The rate resets quarterly based on 3-month LIBOR plus 2.15%.

Each of Trust I and Trust II issued an aggregate principal amount of $12.5 million of capital securities initially bearing fixed and/or fixed/floating interest rates corresponding to the debt securities held by each trust to an unaffiliated investment vehicle and an aggregate principal amount of $387 thousand of common securities bearing fixed and/or fixed/floating interest rates corresponding to the debt securities held by each trust to the Corporation. As a result of the RBPI Merger, the Corporation has

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fully and unconditionally guaranteed all of the obligations of the Trusts, including any distributions and payments on liquidation or redemption of the capital securities.

The rights of holders of common securities of the Trusts are subordinate to the rights of the holders of capital securities only in the event of a default; otherwise, the common securities’ economic and voting rights are pari passu with the capital securities. The capital and common securities of the Trusts are subject to mandatory redemption upon the maturity or call of the junior subordinated debentures held by each. Unless earlier dissolved, the Trusts will dissolve on December 15, 2034. The junior subordinated debentures are the sole assets of Trusts, mature on December 15, 2034, currently and may be called at par by the Corporation. The Corporation records its investments in the Trusts’ common securities of $387 thousand each as investments in unconsolidated entities and records dividend income upon declaration by Trust I and Trust II.

Note 11 – Operating Leases

The Corporation’s operating leases consist of various retail branch locations and corporate offices. As of June 30, 2020, the Corporation’s leases have remaining lease terms ranging from three months to 22 years including extension options that the Corporation is reasonably certain will be exercised.

The Corporation’s leases include fixed rental payments, and certain of our leases also include variable rental payments where lease payments may increase at pre-determined dates based on the change in the consumer price index. The Corporation’s lease agreements include gross leases as well as leases in which we make separate payments to the lessor for items such as the property taxes assessed on the property or a portion of the common area maintenance associated with the property. We have elected the practical expedient not to separate lease and non-lease components for all of our building leases. The Corporation also elected to not recognize right-of-use assets (“ROU assets”) and lease liabilities for short-term leases, which consist of certain leases of the Corporation’s limited-hour retirement community offices.

As of June 30, 2020 the Corporation’s ROU assets and related lease liabilities were $39.3 million and $43.7 million, respectively.

The components of lease expense were as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
(dollars in thousands)
Operating lease expense	$	1,198	$	1,333	$	2,396	$	2,663
Short term lease expense	14		14		29		29
Variable lease expense	308		392		665		810
Sublease income	(8)		(7)		(17)		(16)
Total lease expense	$	1,512	$	1,732	$	3,073	$	3,486

Supplemental cash flow information related to leases was as follows:

	Six Months Ended June 30,
	2020		2019
(dollars in thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	2,348	$	2,561
ROU assets obtained in exchange for lease liabilities	—		44,944

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Maturities of operating lease liabilities under FASB ASC 842 “Leases” as of June 30, 2020 are as follows:

	June 30, 2020
(dollars in thousands)
2020	$	2,357
2021	4,479
2022	4,200
2023	4,047
2024	4,076
2025 and thereafter	37,308
Total lease payments	56,467
Less: imputed interest	12,774
Present value of operating lease liabilities	$	43,693

As of June 30, 2020, the weighted-average remaining lease term, including extension options that the Corporation is reasonably certain will be exercised, for all operating leases is 13.94 years.

Because we generally do not have access to the rate implicit in the lease, we utilize our incremental borrowing rate as the discount rate. The weighted average discount rate associated with operating leases as of June 30, 2020 is 3.58%.

As of June 30, 2020, the Corporation had not entered into any material leases that have not yet commenced.

Note 12 – Derivative Instruments and Hedging Activities

Derivative financial instruments involve, to varying degrees, interest rate, market and credit risk. Management manages these risks as part of its asset and liability management process and through credit policies and procedures. Management seeks to minimize counterparty credit risk by establishing credit limits and collateral agreements and utilizes certain derivative financial instruments to enhance its ability to manage interest rate risk that exists as part of its ongoing business operations. The derivative transactions entered into by the Corporation are an economic hedge of a derivative offerings to Bank customers. The Corporation does not use derivative financial instruments for trading purposes.

Customer Derivatives – Interest Rate Swaps. The Corporation enters into interest rate swaps with commercial loan customers and correspondent banks wishing to manage interest rate risk. The Corporation then enters into corresponding swap agreements with swap dealer counterparties to economically hedge the exposure arising from these contracts. The interest rate swaps with both the customers and third parties are not designated as hedges under FASB ASC 815 and are marked to market through earnings. As the interest rate swaps are structured to offset each other, changes to the underlying benchmark interest rates considered in the valuation of these instruments do not result in an impact to earnings; however, there may be fair value adjustments related to credit quality variations between counterparties, which may impact earnings as required by FASB ASC 820. As of June 30, 2020, there were no fair value adjustments related to credit quality.

Foreign Exchange Forward Contracts. The Corporation enters into foreign exchange forward contracts (“FX forwards”) with customers to exchange one currency for another on an agreed date in the future at an agreed exchange rate. The Corporation then enters into corresponding FX forwards with swap dealer counterparties to economically hedge its exposure on the exchange rate component of the customer agreements. The FX forwards with both the customers and third parties are not designated as hedges under FASB ASC 815 and are marked to market through earnings. Exposure to gains and losses on these contracts increase or decrease over their respective lives as currency exchange and interest rates fluctuate. As the FX forwards are structured to offset each other, changes to the underlying term structure of currency exchange rates considered in the valuation of these instruments do not result in an impact to earnings; however, there may be fair value adjustments related to credit quality variations between counterparties, which may impact earnings as required by FASB ASC 820. As of June 30, 2020, there were no fair value adjustments related to credit quality.

Risk Participation Agreements. The Corporation may enter into a risk participation agreement (“RPA”) with another institution as a means to assume a portion of the credit risk associated with a loan structure which includes a derivative instrument, in exchange for fee income commensurate with the risk assumed. This type of derivative is referred to as an “RPA sold.” In addition, in an effort to reduce the credit risk associated with an interest rate swap agreement with a borrower for whom the

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Corporation has provided a loan structured with a derivative, the Corporation may purchase an RPA from an institution participating in the facility in exchange for a fee commensurate with the risk shared. This type of derivative is referred to as an “RPA purchased.”

The following tables detail the derivative instruments as of June 30, 2020 and December 31, 2019:

	Asset Derivatives				Liability Derivatives
(dollars in thousands)	Notional Amount		Fair Value		Notional Amount		Fair Value
Derivatives not designated as hedging instruments
As of June 30, 2020:
Customer derivatives – interest rate swaps	$	970,146	$	143,339	$	970,146	$	143,339
FX forwards	3,528		36		4,116		107
RPAs sold	—		—		14,164		39
RPAs purchased	39,995		358		—		—
Total derivatives	$	1,013,669	$	143,733	$	988,426	$	143,485
As of December 31, 2019:
Customer derivatives – interest rate swaps	$	790,209	$	47,627	$	790,209	$	47,627
RPAs sold	—		—		4,232		16
RPAs purchased	20,249		90		—		—
Total derivatives	$	810,458	$	47,717	$	794,441	$	47,643

The Corporation has International Swaps and Derivatives Association agreements with third parties that requires a minimum dollar transfer amount upon a margin call. This requirement is dependent on certain specified credit measures. The amount of collateral posted with third parties at June 30, 2020 and December 31, 2019 was $157.5 million and $63.8 million, respectively, and is comprised of a combination of cash and investment securities. The amount of collateral posted with third parties is deemed to be sufficient to collateralize both the fair market value change as well as any additional amounts that may be required as a result of a change in the specified credit measures. The aggregate fair value of all derivative financial instruments in a liability position with credit measure contingencies and entered into with third parties was $143.3 million and $46.7 million as of June 30, 2020 and December 31, 2019, respectively.

Note 13 – Accounting for Uncertainty in Income Taxes

The Corporation recognizes the financial statement benefit of a tax position only after determining that the Corporation would be more likely than not to sustain the position following an examination. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50% likelihood of being realized upon settlement with the relevant tax authority.

The Corporation is subject to income taxes in the United States federal jurisdiction and multiple state jurisdictions. The Corporation is no longer subject to U.S. federal income tax examination by taxing authorities for years before 2016.

The Corporation’s policy is to record interest and penalties on uncertain tax positions as income tax expense. No interest or penalties were accrued for the six months ended June 30, 2020 or 2019.

Note 14 – Shareholders’ Equity

Dividend

On July 20, 2020, BMBC’s Board of Directors declared a regular quarterly dividend of $0.27 per share payable September 1, 2020 to shareholders of record as of August 3, 2020. During the second quarter of 2020, the Corporation paid or accrued, as applicable, a regular quarterly dividend of $0.26 per share. This dividend totaled $5.3 million, based on outstanding shares and restricted stock units as of April 30, 2020 of 20,251,459 shares.

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S-3 Shelf Registration Statement and Offerings Thereunder

In May 2018, BMBC filed a shelf registration statement on Form S-3, SEC File No. 333-224849 (the “Shelf Registration Statement”). The Shelf Registration Statement allows BMBC to raise additional capital from time to time through offers and sales of registered securities consisting of common stock, debt securities, warrants, purchase contracts, rights and units or units consisting of any combination of the foregoing securities. BMBC may sell these securities using the prospectus in the Shelf Registration Statement, together with applicable prospectus supplements, from time to time, in one or more offerings.

In addition, BMBC has in place a Dividend Reinvestment and Stock Purchase Plan (the “Plan”), which allows it to issue up to 1,500,000 shares of registered common stock. The Plan allows for the grant of a request for waiver (“RFW”) above the Plan’s maximum investment of $120 thousand per account per year. A RFW is granted based on a variety of factors, including BMBC’s current and projected capital needs, prevailing market prices of BMBC’s common stock and general economic and market conditions.

For the three and six months ended June 30, 2020, BMBC did not issue any shares under the Plan. The Plan administrator conducted dividend reinvestments for Plan participants through open market purchases. No RFWs were approved during the three and six months ended June 30, 2020. No other sales of equity securities were executed under the Shelf Registration Statement during the three and six months ended June 30, 2020.

Option Exercises and Vesting of Restricted Stock Units (“RSUs”) and Performance Stock Units (“PSUs”)

In addition to shares that may be issued through the Plan, the Corporation also issues shares through the exercise of stock options and the vesting of RSUs and PSUs. During the six months ended June 30, 2020, 338 shares were issued pursuant to the exercise of stock options, increasing shareholders’ equity by $5 thousand. No shares were issued pursuant to the exercise of stock options during the three months ended June 30, 2020. The increase in shareholders’ equity related to the vesting of RSUs and PSUs, which is recognized over the vesting period through stock based compensation expense, was $624 thousand and $1.5 million for the three and six months ended June 30, 2020.

Stock Repurchases

On April 18, 2019, BMBC announced a new stock repurchase program (the “2019 Program”) pursuant to which the Corporation may repurchase up to 1,000,000 shares of BMBC's common stock. Under the 2019 Program, the Corporation may repurchase BMBC's common stock at any price, but the aggregate purchase price is not to exceed $45 million. The 2019 Program became effective in the second quarter of 2019. During the three months ended March 31, 2020, 207,201 shares were repurchased under the 2019 Program at an average price of $34.99. No shares were repurchased during the three months ended June 30, 2020. All share repurchases were accomplished in open market transactions. As of June 30, 2020, the maximum number of shares remaining authorized for repurchase under the 2019 Program was 710,032, at an aggregate purchase price not to exceed $34.8 million.

In addition to the 2019 Program, it is BMBC’s practice to retire shares to its treasury account upon the vesting of stock awards to certain officers in order to cover the statutory income tax withholdings related to such vestings.

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Note 15 – Accumulated Other Comprehensive Income (Loss)

The following table details the components of accumulated other comprehensive income (loss) for the three and six months ended June 30, 2020 and 2019:

(dollars in thousands)	Net Change in Unrealized Gains on Available-for- Sale Investment Securities		Net Change in Unfunded Pension Liability		Accumulated Other Comprehensive Income (Loss)
Balance, March 31, 2020	$	10,569	$	(1,700)	$	8,869
Other comprehensive income	127		23		150
Balance, June 30, 2020	$	10,696	$	(1,677)	$	9,019
Balance, March 31, 2019	$	(2,010)	$	(1,268)	$	(3,278)
Other comprehensive income	4,962		16		4,978
Balance, June 30, 2019	$	2,952	$	(1,252)	$	1,700

(dollars in thousands)	Net Change in Unrealized Gains on Available-for- Sale Investment Securities		Net Change in Unfunded Pension Liability		Accumulated Other Comprehensive Income (Loss)
Balance, December 31, 2019	$	3,910	$	(1,723)	$	2,187
Other comprehensive income	6,786		46		6,832
Balance, June 30, 2020	$	10,696	$	(1,677)	$	9,019
Balance, December 31, 2018	$	(6,229)	$	(1,284)	$	(7,513)
Other comprehensive income	9,181		32		9,213
Balance, June 30, 2019	$	2,952	$	(1,252)	$	1,700

The following table details the amounts reclassified from each component of accumulated other comprehensive income (loss) to each component’s applicable income statement line, for the three and six months ended June 30, 2020 and 2019:

	Amount Reclassified from Accumulated Other Comprehensive Income (Loss)
Description of Accumulated Other Comprehensive Income (Loss) Component	Three Months Ended June 30,				Affected Income Statement Category
	2020		2019
Unfunded pension liability:
Amortization of net loss included in net periodic pension costs(1)	$	17	$	13	Other operating expenses
Income tax effect	(3)		(3)		Income tax expense
Net of income tax	$	14	$	10	Net income

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	Amount Reclassified from Accumulated Other Comprehensive Income (Loss)
Description of Accumulated Other Comprehensive Income (Loss) Component	Six Months Ended June 30,				Affected Income Statement Category
	2020		2019
Unfunded pension liability:
Amortization of net loss included in net periodic pension costs(1)	$	35	$	24	Other operating expenses
Income tax effect	(7)		(5)		Income tax expense
Net of income tax	$	28	$	19	Net income

(1) Accumulated other comprehensive income (loss) components are included in the computation of net periodic pension cost.

Note 16 – Earnings per Common Share

Basic earnings per common share excludes dilution and is computed by dividing income available to common shareholders by the weighted-average common shares outstanding during the period. Diluted earnings per common share takes into account the potential dilution that would occur if in-the-money stock options were exercised and converted into common shares and RSUs and PSUs were vested. Proceeds assumed to have been received on option exercises are assumed to be used to purchase shares of BMBC’s common stock at the average market price during the period, as required by the treasury stock method of accounting. The effects of stock options are excluded from the computation of diluted earnings per share in periods in which the effect would be antidilutive.

	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in thousands except share and per share data)	2020		2019		2020		2019
Numerator:
Net income available to common shareholders	$	15,035	$	15,785	$	3,872	$	26,462
Denominator for basic earnings per share – weighted average shares outstanding	19,926,737		20,144,651		19,989,948		20,156,509
Effect of dilutive common shares	81,482		99,758		87,211		99,960
Denominator for diluted earnings per share – adjusted weighted average shares outstanding	20,008,219		20,244,409		20,077,159		20,256,469
Basic earnings per share	$	0.75	$	0.78	$	0.19	$	1.31
Diluted earnings per share	0.75		0.78		0.19		1.31
Antidilutive shares excluded from computation of average dilutive earnings per share	76,038		14,441		71,260		30,506

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Note 17 – Revenue from Contracts with Customers

All of the Corporation’s revenue from contracts with customers in the scope of ASC 606 is recognized within noninterest income. The following table presents the Corporation’s noninterest income by revenue stream and reportable segment for the three and six months ended June 30, 2020 and 2019. Items outside the scope of ASC 606 are noted as such.

	Three Months Ended June 30, 2020						Three Months Ended June 30, 2019
(dollars in thousands)	Banking		Wealth Management		Consolidated		Banking		Wealth Management		Consolidated
Fees for wealth management services	$	—	$	9,069	$	9,069	$	—	$	11,510	$	11,510
Insurance commissions	—		1,303		1,303		—		1,697		1,697
Capital markets revenue(1)	2,975		—		2,975		1,489		—		1,489
Service charges on deposit accounts	603		—		603		852		—		852
Loan servicing and other fees(1)	452		—		452		553		—		553
Net gain on sale of loans(1)	3,134		—		3,134		752		—		752
Dividends on FHLB and FRB stock(1)	243		—		243		316		—		316
Other operating income(2)	2,699		88		2,787		3,026		26		3,052
Total noninterest income	$	10,106	$	10,460	$	20,566	$	6,988	$	13,233	$	20,221

(1) Not within the scope of ASC 606.

(2) Other operating income includes Visa debit card income, safe deposit box rentals, and rent income totaling $733 thousand and $525 thousand for the three months ended June 30, 2020 and 2019, respectively, which are within the scope of ASC 606.

	Six Months Ended June 30, 2020						Six Months Ended June 30, 2019
(dollars in thousands)	Banking		Wealth Management		Consolidated		Banking		Wealth Management		Consolidated
Fees for wealth management services	$	—	$	20,237	$	20,237	$	—	$	21,902	$	21,902
Insurance commissions	—		2,836		2,836		—		3,369		3,369
Capital markets revenue(1)	5,336		—		5,336		3,708		—		3,708
Service charges on deposit accounts	1,449		—		1,449		1,660		—		1,660
Loan servicing and other fees(1)	913		—		913		1,162		—		1,162
Net gain on sale of loans(1)	3,916		—		3,916		1,071		—		1,071
Net gain (loss) on sale of OREO	148		—		148		(24)		—		(24)
Dividends on FHLB and FRB stock(1)	687		—		687		727		—		727
Other operating income(2)	3,243		101		3,344		5,852		47		5,899
Total noninterest income	$	15,692	$	23,174	$	38,866	$	14,156	$	25,318	$	39,474

(1) Not within the scope of ASC 606.

(2) Other operating income includes Visa debit card income, safe deposit box rentals, and rent income totaling $1.4 million and $1.0 million for the six months ended June 30, 2020 and 2019, respectively, which are within the scope of ASC 606.

A description of the Corporation’s primary revenue streams accounted for under ASC 606 follows:

Service Charges on Deposit Accounts: The Corporation earns fees from its deposit customers for transaction-based, account maintenance, and overdraft services. Transaction-based fees, which include services such as ATM use fees, stop payment charges, statement rendering, and ACH fees, are recognized at the time the transaction is executed as that is the point in time the Corporation fulfills the customer’s request. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of a month, representing the period over which the Corporation satisfies the performance obligation.

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Overdraft fees are recognized at the point in time that the overdraft occurs. Service charges on deposits are withdrawn from the customer’s account balance.

Wealth Management Fees: The Corporation earns wealth management fee revenue from a variety of sources including fees from trust administration and other related fiduciary services, custody, investment management and advisory services, employee benefit account and IRA administration, estate settlement, tax service fees, shareholder service fees and brokerage.

Fees that are determined based on the market value of the assets held in their accounts are generally billed monthly or quarterly, in arrears, based on the market value of assets at the end of the previous billing period. Other related services that are based on a fixed fee schedule are recognized when the services are rendered. Fees that are transaction based, including trade execution services, are recognized at the point in time that the transaction is executed, i.e. the trade date.

Included in other assets on the balance sheet is a receivable for wealth management fees that have been earned but not yet collected.

Insurance Commissions: The Corporation earns commissions from the sale of insurance policies, which are generally calculated as a percentage of the policy premium, and contingent income, which is calculated based on the volume and performance of the policies held by each carrier. Obligations for the sale of insurance policies are generally satisfied at the point in time which the policy is executed and are recognized at the point in time in which the amounts are known and collection is reasonably assured. Performance metrics for contingent income are generally satisfied over time, not exceeding one year, and are recognized at the point in time in which the amounts are known and collection is reasonably assured.

Visa Debit Card Income: The Corporation earns income fees from debit cardholder transactions conducted through the Visa payment network. Fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing services provided to the cardholder.

Gains/Losses on Sales of OREO: The Corporation records a gain or loss from the sale of OREO when control of the property transfers to the buyer, which generally occurs at the time of an executed deed.

Note 18 – Stock-Based Compensation

A. General Information

BMBC permits the issuance of stock options, dividend equivalents, performance stock awards, stock appreciation rights and restricted stock units or awards to employees and directors of the Corporation under several plans. The performance awards and restricted awards may be in the form of stock awards or stock units. Stock awards and stock units differ in that for a stock award, shares of restricted stock are issued in the name of the grantee, whereas a stock unit constitutes a promise to issue shares of stock upon vesting. The accounting for awards and units is identical. The terms and conditions of awards under the plans are determined by the Corporation’s Management Development and Compensation Committee.

Prior to April 25, 2007, all shares authorized for grant as stock-based compensation were limited to grants of stock options. On April 25, 2007, the shareholders approved BMBC’s “2007 Long-Term Incentive Plan” (the “2007 LTIP”) under which a total of 428,996 shares of BMBC’s common stock were made available for award grants. On April 28, 2010, the shareholders approved BMBC’s “2010 Long Term Incentive Plan” under which a total of 445,002 shares of BMBC’s common stock were made available for award grants, and on April 30, 2015, the shareholders approved an amendment and restatement of such plan (as amended and restated, the “2010 LTIP”) to, among other things, increase the number of shares available for award grants by 500,000 to 945,002.

In addition to the shareholder-approved plans mentioned in the preceding paragraph, BMBC periodically authorizes grants of stock-based compensation as inducement awards to new employees. This type of award does not require shareholder approval in accordance with Rule 5635(c)(4) of the NASDAQ listing rules.

The equity awards are authorized to be in the form of, among others, options to purchase BMBC’s common stock, RSUs and PSUs.

RSUs have a restriction based on the passage of time. The grant date fair value of the RSUs is based on the closing price on the date of the grant.

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PSUs have restrictions based on performance criteria and the passage of time. The performance criteria may be a market-based criteria measured by BMBC’s total shareholder return (“TSR”) relative to the performance of the community bank index for the respective period. The fair value of the PSUs based on BMBC’s TSR relative to the performance of a designated peer group or the NASDAQ Community Bank Index is calculated using the Monte Carlo Simulation method. The performance criteria may also be based on a non-market-based criteria such as return on average equity relative to that designated peer group. The grant date fair value of these PSUs is based on the closing price of BMBC’s stock on the date of the grant. PSU grants may have a vesting percent ranging from 0% to 150%.

B. Other Stock Option Information

The following table provides information about options outstanding for the three and six months ended June 30, 2020:

	Shares	Weighted Average Exercise Price		Weighted Average Grant Date Fair Value
Options outstanding, March 31, 2020	563	$	21.32	$	19.09
Forfeited	—	—		—
Expired	—	—		—
Exercised	—	—		—
Options outstanding, June 30, 2020	563	21.32		19.09

	Shares	Weighted Average Exercise Price		Weighted Average Grant Date Fair Value
Options outstanding, December 31, 2019	901	$	19.33	$	16.78
Forfeited	—	—		—
Expired	—	—		—
Exercised	(338)	16.02		12.93
Options outstanding, June 30, 2020	563	21.32		19.09

As of June 30, 2020 there were no unvested options.

Proceeds, related tax benefits realized from options exercised and intrinsic value of options exercised were as follows for the periods presented:

	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in thousands)	2020		2019		2020		2019
Proceeds from exercise of stock options	$	—	$	82	$	5	$	622
Related tax benefit recognized	—		18		2		155
Net proceeds of options exercised	$	—	$	100	$	7	$	777
Intrinsic value of options exercised	$	—	$	86	$	8	$	738

The following table provides information about options outstanding and exercisable at June 30, 2020:

(dollars in thousands, except share data and exercise price)	Outstanding		Exercisable
Number of shares	563		563
Weighted average exercise price	$	21.32	$	21.32
Aggregate intrinsic value	$	4	$	4
Weighted average remaining contractual term in years	3.6		3.6

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C. Restricted Stock Units and Performance Stock Units

The Corporation has granted RSUs and PSUs under the 2007 LTIP and 2010 LTIP and in accordance with Rule 5635(c)(4) of the NASDAQ listing standards.

RSUs

The compensation expense for the RSUs is measured based on the market price of the stock on the day prior to the grant date and is recognized on a straight-line basis over the vesting period.

For the three and six months ended June 30, 2020, the Corporation recognized $471 thousand and $0.9 million, respectively, of expense related to the Corporation’s RSUs. As of June 30, 2020, there was $2.8 million of unrecognized compensation cost related to RSUs. This cost will be recognized over a weighted average period of 2 years.

The following table details the RSUs for the three and six months ended June 30, 2020:

	Three Months Ended June 30, 2020			Six Months Ended June 30, 2020
	Number of Shares	Weighted Average Grant Date Fair Value		Number of Shares	Weighted Average Grant Date Fair Value
Beginning balance	136,725	$	38.02	115,466	$	38.57
Granted	—	—		26,818	35.90
Vested	(6,799)	39.82		(11,772)	39.73
Forfeited	—	—		(586)	35.74
Ending balance	129,926	37.92		129,926	37.92

PSUs

For the three and six months ended June 30, 2020, the Corporation recognized $153 thousand and $0.6 million, respectively, of expense related to the PSUs. As of June 30, 2020, there was $2.3 million of unrecognized compensation cost related to PSUs. This cost will be recognized over a weighted average period of 1.8 years.

The following table details the PSUs for the three and six months ended June 30, 2020:

	Three Months Ended June 30, 2020			Six Months Ended June 30, 2020
	Number of Shares	Weighted Average Grant Date Fair Value		Number of Shares	Weighted Average Grant Date Fair Value
Beginning balance	189,808	$	37.31	136,271	$	37.87
Granted	—	—		53,685	35.90
Vested	—	—		—	—
Forfeited	—	—		(148)	40.35
Ending balance	189,808	37.31		189,808	37.31

Note 19 – Fair Value Measurement

FASB ASC 820, “Fair Value Measurements and Disclosures,” defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles and expands disclosures about fair value measurements. FASB ASC 820 also establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).

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The three levels of the fair value hierarchy under FASB ASC Topic 820 are:

Level 1 – Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

Level 2 – Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active and model derived valuations whose inputs are observable or whose significant value drivers are observable.

Level 3 – Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity).

A. Assets and liabilities measured on a recurring basis

A description of the valuation methodologies used for financial instruments measured at fair value on a recurring basis, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. 

Investment Securities

The value of the Corporation’s available for sale investment securities, which include obligations of the U.S. government and its agencies, mortgage-backed securities issued by U.S. government- and U.S. government sponsored agencies, obligations of state and political subdivisions, corporate bonds and other debt securities are determined by the Corporation, taking into account the input of an independent third party valuation service provider. The third party’s evaluations are based on market data, utilizing pricing models that vary by asset and incorporate available trade, bid and other market information. For securities that do not trade on a daily basis, their pricing models apply available information such as benchmarking and matrix pricing. The market inputs normally sought in the evaluation of securities include benchmark yields, reported trades, broker/dealer quotes (only obtained from market makers or broker/dealers recognized as market participants), issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data. For certain securities, additional inputs may be used or some market inputs may not be applicable. Inputs are prioritized differently on any given day based on market conditions. Management reviews, annually, the process utilized by its independent third-party valuation service provider. On a quarterly basis, management tests the validity of the prices provided by the third party by selecting a representative sample of the portfolio and obtaining actual trade results, or if actual trade results are not available, competitive broker pricing. On an annual basis, management evaluates, for appropriateness, the methodology utilized by the independent third-party valuation service provider.

U.S. government agencies are evaluated and priced using multi-dimensional relational models and option adjusted spreads. State and municipal securities are evaluated on a series of matrices including reported trades and material event notices. Mortgage-backed securities are evaluated using matrix correlation to treasury or floating index benchmarks, prepayment speeds, monthly payment information and other benchmarks. Other available-for-sale investments are evaluated using a broker-quote based application, including quotes from issuers.

Interest Rate Swaps, FX Forwards, and Risk Participation Agreements 

The Corporation’s interest rate swaps, FX forwards, and RPAs are reported at fair value utilizing Level 2 inputs. Prices of these instruments are obtained through an independent pricing source utilizing pricing information which may include market observed quotations for swaps, LIBOR rates, forward rates and rate volatility. When entering into a derivative contract, the Corporation is exposed to fair value changes due to interest rate movements, and the potential non-performance of our contract counterparty. The Corporation has developed a methodology to value the non-performance risk based on internal credit risk metrics and the unique characteristics of derivative instruments, which include notional exposure rather than principle at risk and interest payment netting. The results of this methodology are used to adjust the base fair value of the instrument for the potential counterparty credit risk.

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The following tables present the Corporation’s assets measured at fair value on a recurring basis as of June 30, 2020 and December 31, 2019:

As of June 30, 2020
(dollars in thousands)	Total		Level 1		Level 2		Level 3
Investment securities available for sale:
U.S. Treasury securities	$	100	$	100	$	—	$	—
Obligations of U.S. government & agencies	114,149		—		114,149		—
Obligations of state & political subdivisions	4,583		—		4,583		—
Mortgage-backed securities	377,204		—		377,204		—
Collateralized mortgage obligations	25,873		—		25,873		—
Corporate bonds	8,022		—		8,022		—
Other investment securities	650		—		650		—
Total investment securities available for sale	530,581		100		530,481		—
Investment securities trading:
Mutual funds	7,801		7,801		—		—
Derivatives:
Interest rate swaps	143,339		—		143,339		—
RPAs purchased	358		—		358		—
FX forwards	36		—		36		—
Total derivatives	143,733		—		143,733		—
Total recurring fair value measurements	$	682,115	$	7,901	$	674,214	$	—

As of December 31, 2019
(dollars in thousands)	Total		Level 1		Level 2		Level 3
Investment securities available for sale:
U.S. Treasury securities	$	500,101	$	500,101	$	—	$	—
Obligations of U.S. government & agencies	102,020		—		102,020		—
Obligations of state & political subdivisions	5,379		—		5,379		—
Mortgage-backed securities	366,002		—		366,002		—
Collateralized mortgage obligations	31,832		—		31,832		—
Other investment securities	650		—		650		—
Total investment securities available for sale	1,005,984		500,101		505,883		—
Investment securities trading:
Mutual funds	8,621		8,621		—		—
Derivatives:
Interest rate swaps	47,627		—		47,627		—
RPAs purchased	90		—		90		—
Total derivatives	47,717		—		47,717		—
Total recurring fair value measurements	$	1,062,322	$	508,722	$	553,600	$	—

There have been no transfers between levels during the three and six months ended June 30, 2020.

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B. Assets and liabilities measured on a non-recurring basis

Fair value is used on a nonrecurring basis to evaluate certain financial assets and financial liabilities in specific circumstances. Similarly, fair value is used on a nonrecurring basis for nonfinancial assets and nonfinancial liabilities such as foreclosed assets, OREO, intangible assets, nonfinancial assets and liabilities evaluated in a goodwill impairment analysis and other nonfinancial assets measured at fair value for purposes of assessing impairment. A description of the valuation methodologies used for financial and nonfinancial assets and liabilities measured at fair value, as well as the general classification of such assets and liabilities pursuant to the valuation hierarchy, is set forth below.

Collateral-dependent Loans and Leases

Collateral-dependent loans and leases for which the repayment is expected to be provided substantially through the sale of the collateral and the borrower is experiencing financial difficulty are, in general, individually evaluated for credit losses. Management evaluates and values collateral-dependent loans and leases when management determines that foreclosure is probable or when the borrower is experiencing financial difficulty at the reporting date and repayment is expected to be provided substantially through the operation or sale of the collateral, and the fair values of such loans and leases are estimated using Level 3 inputs in the fair value hierarchy. Each loan’s collateral has a unique appraisal and management’s discount of the value is based on the factors unique to each loan or lease. The significant unobservable input in determining the fair value is management’s subjective discount on appraisals of the collateral securing the loan, which range from 10% - 50%. Collateral may consist of real estate and/or business assets including equipment, inventory and/or accounts receivable and the value of these assets is determined based on the appraisals by qualified licensed appraisers hired by the Corporation. Appraised and reported values may be discounted based on management’s historical knowledge, changes in market conditions from the time of valuation, estimated costs to sell, and/or management’s expertise and knowledge of the client and the client’s business.

The Corporation has an appraisal policy in which an appraisal is obtained for a commercial loan at the point at which the loan either becomes nonperforming or is downgraded to a substandard or worse classification. For consumer loans, management obtains updated appraisals when a loan becomes 90 days past due or when it receives other information that may indicate possible impairment. Based on the appraisals obtained by the Corporation, a partial or full charge-off may be necessary. 

Other Real Estate Owned (“OREO”)

OREO consists of properties acquired as a result of foreclosures and deeds in-lieu-of foreclosure. Properties classified as OREO are reported at the lower of cost or fair value less cost to sell, and are classified as Level 3 in the fair value hierarchy. The Corporation did not have any OREO at June 30, 2020 or December 31, 2019.

Mortgage Servicing Rights

The model to value MSRs estimates the present value of projected net servicing cash flows of the remaining servicing portfolio based on various assumptions, including changes in anticipated loan prepayment rates, the discount rate, reflective of a market participant's required return on an investment for similar assets, and other market-based economic factors. All of these assumptions are considered to be unobservable inputs. Accordingly, MSRs are classified within Level 3 of the fair value hierarchy.

The following tables present the Corporation’s assets measured at fair value on a non-recurring basis as of June 30, 2020 and December 31, 2019:

As of June 30, 2020
(dollars in thousands)	Total		Level 1		Level 2		Level 3
MSRs	$	3,440	$	—	$	—	$	3,440
Collateral-dependent loans and leases	8,217		—		—		8,217
Total non-recurring fair value measurements	$	11,657	$	—	$	—	$	11,657

As of December 31, 2019
(dollars in thousands)	Total		Level 1		Level 2		Level 3
MSRs	$	4,838	$	—	$	—	$	4,838
Impaired loans and leases	15,311		—		—		15,311
Total non-recurring fair value measurements	$	20,149	$	—	$	—	$	20,149

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During the three and six months ended June 30, 2020, a net decrease and a net increase of $110 thousand and $122 thousand were recorded in the ACL on loans and leases as a result of adjusting the carrying value and estimated fair value of the collateral-dependent loans in the above tables.

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Note 20 – Fair Value of Financial Instruments

FASB ASC 825, “Disclosures about Fair Value of Financial Instruments” requires disclosure of the fair value information about financial instruments, whether or not recognized in the balance sheet, for which it is practicable to estimate such value. The methodologies for estimating the fair value of financial assets and financial liabilities measured at fair value on a recurring and non-recurring basis are discussed above. The estimated fair value amounts have been determined by management using available market information and appropriate valuation methodologies, are based on the exit price notion. In cases where quoted market prices are not available, fair values are based on estimates using present value or other market value techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate settlement of the instrument. The aggregate fair value amounts presented below do not represent the underlying value of the Corporation.

The carrying amount and fair value of the Corporation’s financial instruments are as follows:

		June 30, 2020				December 31, 2019
(dollars in thousands)	Fair Value Hierarchy Level(1)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial assets:
Cash and cash equivalents	Level 1	$	464,521	$	464,521	$	53,931	$	53,931
Investment securities - available for sale	See Note 19	530,581		530,581		1,005,984		1,005,984
Investment securities - trading	See Note 19	7,801		7,801		8,621		8,621
Investment securities – held to maturity	Level 2	12,592		12,995		12,577		12,661
Loans held for sale	Level 2	4,116		4,116		4,249		4,249
Net portfolio loans and leases	Level 3	3,667,191		3,564,380		3,666,711		3,596,268
MSRs	Level 3	3,440		3,440		4,450		4,838
Interest rate swaps	Level 2	143,339		143,339		47,627		47,627
FX forwards	Level 2	36		36		—		—
RPAs purchased	Level 2	358		358		90		90
Other assets	Level 3	37,137		37,137		52,908		52,908
Total financial assets		$	4,871,112	$	4,768,704	$	4,857,148	$	4,787,177
Financial liabilities:
Deposits	Level 2	$	4,243,648	$	4,248,488	$	3,842,245	$	3,842,014
Short-term borrowings	Level 2	28,891		28,891		493,219		493,219
Long-term FHLB advances	Level 2	44,837		45,664		52,269		52,380
Subordinated notes	Level 2	98,794		91,748		98,705		97,199
Junior subordinated debentures	Level 2	21,843		26,097		21,753		25,652
Interest rate swaps	Level 2	143,339		143,339		47,627		47,627
FX forwards	Level 2	107		107		—		—
RPAs sold	Level 2	39		39		16		16
Other liabilities	Level 3	42,447		42,447		50,251		50,251
Total financial liabilities		$	4,623,945	$	4,626,820	$	4,606,085	$	4,608,358

(1) See Note 19 in the Notes to Unaudited Consolidated Financial Statements above for a description of hierarchy levels.

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Note 21 – Financial Instruments with Off-Balance Sheet Risk, Contingencies and Concentration of Credit Risk

Off-Balance Sheet Arrangements

The Corporation is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the consolidated statements of financial condition. The contractual amounts of those instruments reflect the extent of involvement the Corporation has in particular classes of financial instruments.

The Corporation’s exposure to credit loss in the event of nonperformance by the counterparty to the financial instrument of commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Corporation uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet financial instruments.

Commitments to extend credit, which include unused lines of credit and unfunded commitments to originate loans, are agreements to lend to a customer as long as there is no violation of any condition established in the agreement. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Some of the commitments are expected to expire without being drawn upon, and the total commitment amounts do not necessarily represent future cash requirements. Total commitments to extend credit at June 30, 2020 and December 31, 2019 were $826.3 million and $828.9 million, respectively. Management evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Corporation upon extension of credit, is based on a credit evaluation of the counterparty. Collateral varies but may include accounts receivable, marketable securities, inventory, property, plant and equipment, residential real estate, and income-producing commercial properties.

Standby letters of credit are conditional commitments issued by the Bank to a customer for a third party. Such standby letters of credit are issued to support private borrowing arrangements. The credit risk involved in issuing standby letters of credit is similar to that involved in extending loan facilities to customers. The collateral varies, but may include accounts receivable, marketable securities, inventory, property, plant and equipment, and residential real estate for those commitments for which collateral is deemed necessary. The Corporation’s obligations under standby letters of credit as of June 30, 2020 and December 31, 2019 were $13.2 million and $20.7 million, respectively.

Contingencies

Legal Matters

In the ordinary course of its operations, BMBC and its subsidiaries are parties to various claims, litigation, investigations, and legal and administrative cases and proceedings. Such pending or threatened claims, litigation, investigations, legal and administrative cases and proceedings typically entail matters that are considered ordinary routine litigation incidental to our business. Claims for significant monetary damages may be asserted in many of these types of legal actions. Based on the information currently available, management believes it has meritorious defenses to the claims asserted against it in its currently outstanding legal proceedings and with respect to such legal proceedings, intends to continue to defend itself vigorously, litigating or settling cases according to management’s judgment as to what is in the best interests of the Corporation and its shareholders.

On a regular basis, liabilities and contingencies in connection with outstanding legal proceedings are assessed utilizing the latest information available. For those matters where it is probable that the Corporation will incur a loss and the amount of the loss can be reasonably estimated, a liability may be recorded in the Consolidated Financial Statements. These legal reserves may be increased or decreased to reflect any relevant developments on at least a quarterly basis. For other matters, where a loss is not probable or the amount or range of the loss is not estimable, legal reserves are not accrued. While the outcome of legal proceedings is inherently uncertain, based on information currently available, advice of counsel and available insurance coverage, management believes that the established legal reserves are adequate and the liabilities arising from legal proceedings will not have a material adverse effect on the consolidated financial position, consolidated results of operations or consolidated cash flows. However, in the event of unexpected future developments, it is possible that the ultimate resolution of these matters, if unfavorable, may be material to the consolidated financial position, consolidated results of operations or consolidated cash flows of the Corporation.

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Crusader Servicing Corporation (“Crusader”), which was an 80% owned subsidiary of Royal Bank America that was acquired by the Bank in the RBPI merger, along with the Bank as successor-in-interest to Royal Bank America, are defendants in the case captioned Snyder v. Crusader Servicing Corporation et al., Case No. 2007-01027, in the Court of Common Pleas of Montgomery County, Pennsylvania. The case involves claims brought by a former Crusader shareholder in 2007 against Crusader, its former directors and remaining shareholders related, among other things, to a purported failure to pay amounts allegedly due to Snyder for his shares of Crusader stock. Subsequent to the end of the first quarter of 2019, on May 1, 2019, the Court rendered a decision against Crusader. The matter was appealed, and on March 18, 2020, the Superior Court of the Commonwealth of Pennsylvania returned an opinion reversing in part and affirming in part the trial court's judgment. The effect of this was to vacate the initial judgment awarded by the trial court, and instead to require an appraisal process in accordance with Crusader's Shareholders' Agreement to determine the value of Mr. Snyder's shares. We do not believe that this ruling and any monetary award ultimately payable by Crusader will be material to the consolidated financial position, consolidated results of operations or consolidated cash flows of the Corporation.

Indemnifications

In general, the Corporation does not sell loans with recourse, except to the extent that it arises from standard loan-sale contract provisions. These provisions cover violations of representations and warranties and, under certain circumstances, first payment default by borrowers. These indemnifications may include the repurchase of loans by the Corporation, and are considered customary provisions in the secondary market for conforming mortgage loan sales. Repurchases and losses have been rare and no provision is made for losses at the time of sale. There were no such repurchases for the three and six months ended June 30, 2020.

Concentrations of Credit Risk

The Corporation has a material portion of its loans in real estate-related loans. A predominant percentage of the Corporation’s real estate exposure, both commercial and residential, is in the Corporation’s primary trade area which includes portions of Delaware, Chester, Montgomery and Philadelphia counties in Southeastern Pennsylvania. Management is aware of this concentration and attempts to mitigate this risk to the extent possible in many ways, including the underwriting and assessment of borrower’s capacity to repay. See Note 4 – “Loans and Leases” for additional information.

Note 22 – Segment Information

FASB Codification 280 – “Segment Reporting” identifies operating segments as components of an enterprise which are evaluated regularly by the Corporation’s chief operating decision maker, our Chief Executive Officer, in deciding how to allocate resources and assess performance. The Corporation has applied the aggregation criterion set forth in this codification to the results of its operations.

The Corporation’s Banking segment consists of commercial and retail banking. The Banking segment is evaluated as a single strategic unit which generates revenues from a variety of products and services. The Banking segment generates interest income from its lending (including leases) and investing activities and is dependent on the gathering of lower cost deposits from its branch network or borrowed funds from other sources for funding its loans, resulting in the generation of net interest income. The Banking segment also derives revenues from other sources including gains on the sale in available for sale investment securities, gains on the sale of residential mortgage loans, service charges on deposit accounts, cash sweep fees, overdraft fees, bank owned life insurance (“BOLI”) income and revenue associated with its Visa Check Card offering. Also included in the Banking segment are two subsidiaries of the Bank, KCMI Capital, Inc. and Bryn Mawr Equipment Financing, Inc., both of which provide specialized lending solutions to our customers.

The Wealth Management segment has responsibility for a number of activities within the Corporation, including trust administration, other related fiduciary services, custody, investment management and advisory services, employee benefits and IRA administration, estate settlement, tax services and brokerage. Bryn Mawr Trust of Delaware is included in the Wealth Management segment of the Corporation since it has similar economic characteristics, products and services to those of the Wealth Management Division of the Bank. Effective January 1, 2020, the business of Lau Associates LLC was transitioned into the Wealth Management Division of the Bank. BMT Investment Advisers, formed in May 2017, which serves as investment adviser to BMT Investment Funds, a Delaware statutory trust, is also reported under the Wealth Management segment. In addition, the Wealth Management Division oversees all insurance services of the Corporation, which are conducted through the Bank’s insurance subsidiary, BMT Insurance Advisors, Inc., and are reported in the Wealth Management segment.

The accounting policies of the Corporation are applied by segment in the following tables. The segments are presented on a pre-tax basis.

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The following tables detail the Corporation’s segments for the three and six months ended June 30, 2020 and 2019:

	Three Months Ended June 30, 2020									Three Months Ended June 30, 2019
(dollars in thousands)	Banking			Wealth Management			Consolidated			Banking			Wealth Management			Consolidated
Net interest income	$	37,384		$	1		$	37,385		$	36,610		$	1		$	36,611
PCL on loans and leases	4,302			—			4,302			1,627			—			1,627
Net interest income after PCL on loans and leases	33,082			1			33,083			34,983			1			34,984
Noninterest income:
Fees for wealth management services	—			9,069			9,069			—			11,510			11,510
Insurance commissions	—			1,303			1,303			—			1,697			1,697
Capital markets revenue	2,975			—			2,975			1,489			—			1,489
Service charges on deposit accounts	603			—			603			852			—			852
Loan servicing and other fees	452			—			452			553			—			553
Net gain on sale of loans	3,134			—			3,134			752			—			752
Other operating income	2,942			88			3,030			3,342			26			3,368
Total noninterest income	10,106			10,460			20,566			6,988			13,233			20,221
Noninterest expenses:
Salaries & wages	11,699			5,227			16,926			12,295			4,743			17,038
Employee benefits	2,301			920			3,221			2,338			979			3,317
Occupancy and bank premises	2,535			498			3,033			2,608			517			3,125
Amortization of intangible assets	291			619			910			328			628			956
Professional fees	1,357			218			1,575			1,221			95			1,316
Other operating expenses	7,496			1,475			8,971			7,983			1,453			9,436
Total noninterest expenses	25,679			8,957			34,636			26,773			8,415			35,188
Segment profit	17,509			1,504			19,013			15,198			4,819			20,017
Intersegment (revenues) expenses(1)	(177)			177			—			(125)			125			—
Pre-tax segment profit after eliminations	$	17,332		$	1,681		$	19,013		$	15,073		$	4,944		$	20,017
% of segment pre-tax profit after eliminations	91.2		%	8.8		%	100.0		%	75.3		%	24.7		%	100.0		%
Segment assets (dollars in millions)	$	5,221.7		$	49.6		$	5,271.3		$	4,682.0		$	54.6		$	4,736.6

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	Six Months Ended June 30, 2020									Six Months Ended June 30, 2019
(dollars in thousands)	Banking			Wealth Management			Consolidated			Banking			Wealth Management			Consolidated
Net interest income	$	73,716		$	2		$	73,718		$	74,255		$	3		$	74,258
PCL on loans and leases	36,637			—			36,637			5,363			—			5,363
Net interest income after PCL on loans and leases	37,079			2			37,081			68,892			3			68,895
Noninterest income:
Fees for wealth management services	—			20,237			20,237			—			21,902			21,902
Insurance commissions	—			2,836			2,836			—			3,369			3,369
Capital markets revenue	5,336			—			5,336			3,708			—			3,708
Service charges on deposit accounts	1,449			—			1,449			1,660			—			1,660
Loan servicing and other fees	913			—			913			1,162			—			1,162
Net gain on sale of loans	3,916			—			3,916			1,071			—			1,071
Net gain (loss) on sale of OREO	148			—			148			(24)			—			(24)
Other operating income	3,930			101			4,031			6,579			47			6,626
Total noninterest income	15,692			23,174			38,866			14,156			25,318			39,474
Noninterest expenses:
Salaries & wages	23,558			10,357			33,915			28,070			9,869			37,939
Employee benefits	4,898			1,823			6,721			5,510			1,973			7,483
Occupancy and bank premises	5,051			997			6,048			5,340			1,037			6,377
Amortization of intangible assets	583			1,245			1,828			655			1,239			1,894
Professional fees	2,454			489			2,943			2,384			252			2,636
Other operating expenses	16,732			2,867			19,599			15,252			3,331			18,583
Total noninterest expenses	53,276			17,778			71,054			57,211			17,701			74,912
Segment (loss) profit	(505)			5,398			4,893			25,837			7,620			33,457
Intersegment (revenues) expenses(1)	(355)			355			—			(248)			248			—
Pre-tax segment profit after eliminations	$	(860)		$	5,753		$	4,893		$	25,589		$	7,868		$	33,457
% of segment pre-tax profit after eliminations	(17.6)		%	117.6		%	100.0		%	76.5		%	23.5		%	100.0		%
Segment assets (dollars in millions)	$	5,221.7		$	49.6		$	5,271.3		$	4,682.0		$	54.6		$	4,736.6

(1) Inter-segment revenues consist of rental payments, interest on deposits and management fees.

Wealth Management Segment Information

(dollars in millions)	June 30, 2020		December 31, 2019
Assets under management, administration, supervision and brokerage	$	17,012.9	$	16,548.1

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ITEM 2. Management’s Discussion and Analysis of Results of Operation and Financial Condition

The following discussion describes the significant changes to the financial condition of the Corporation that have occurred during the first six months of 2020 compared to the financial condition as of December 31, 2019. In addition, this discussion summarizes the significant factors affecting the results of operations, liquidity and cash flows of the Corporation for the three and six months ended June 30, 2020, compared to the same periods in 2019. This discussion should be read in conjunction with the accompanying condensed consolidated financial statements included in this report and our Annual Report on Form 10-K for the year ended December 31, 2019 (the “2019 Annual Report”). Certain financial condition comparisons to the prior year and results of operations comparisons for the linked quarter are included for additional trend analysis.

SPECIAL CAUTIONARY NOTICE REGARDING FORWARD LOOKING STATEMENTS

Certain of the statements contained in this Quarterly Report on Form 10-Q and the documents incorporated by reference herein may constitute forward-looking statements for the purposes of the Securities Act of 1933, as amended and the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995 (the “Reform Act”). Such forward-looking statements may include financial and other projections as well as statements regarding the Corporation’s financial goals, future business plans, business prospects, credit quality, credit risk, reserve adequacy, liquidity, origination and sale of residential mortgage loans, mortgage servicing rights, the effect of changes in accounting standards, and market and pricing trends loss. The words “may,” “might,” “would,” “should,” “could,” “will,” “likely,” “possibly,” “expect,” “anticipate,” “intend,” “indicate,” “estimate,” “target,” “potentially,” “promising,” “probably,” “outlook,” “predict,” “contemplate,” “continue,” “plan,” “strategy,” “forecast,” “project,” “annualized,” “are optimistic,” “are looking,” “are looking forward,” and “believe” or other similar expressions may identify statements that constitute forward-looking statements. Persons reading this Quarterly Report on Form 10-Q are cautioned that such statements are only predictions and may involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements of the Corporation to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements.

The COVID-19 pandemic is adversely affecting us, our clients, counterparties, employees, and third party service providers, and the ultimate extent of the impacts on our business, financial position, results of operations, liquidity, and prospects is uncertain. Continued deterioration in general business and economic conditions, including further increases in unemployment rates, or turbulence in domestic or global financial markets could adversely affect our revenues and the values of our assets and liabilities, reduce the availability of funding, lead to a tightening of credit, and further increase stock price volatility, which could result in impairment to our goodwill in future periods. Changes to statutes, regulations, or regulatory policies or practices as a result of, or in response to the COVID-19 pandemic, could affect us in substantial and unpredictable ways, including the potential adverse impact of loan modifications and payment deferrals implemented consistent with recent regulatory guidance. In addition, the Corporation’s actual results may differ materially from the results anticipated by the forward-looking statements due to a variety of factors, including without limitation:

•local, regional, national and international economic conditions, their impact on us and our customers, and our ability to assess those impacts;

•our need for capital;

•reduced demand for our products and services, and lower revenues and earnings due to an economic recession;

•lower earnings due to other-than-temporary impairment charges related to our investment securities portfolios or other assets;

•changes in monetary or fiscal policy, or existing statutes, regulatory guidance, legislation or judicial decisions, including those concerning banking, securities. insurance or taxes, that adversely affect our business, the financial services industry as a whole, the Corporation, or our subsidiaries individually or collectively;

•changes in the level of non-performing assets and charge-offs;

•effectiveness of capital management strategies and activities;

•uncertainty relating to the LIBOR calculation process and potential phasing out of LIBOR after 2021;

•the effect of changes in accounting policies and practices or accounting standards, as may be adopted from time-to-time by bank regulatory agencies, the SEC, the Public Company Accounting Oversight Board, the FASB or other accounting standards setters, including ASU 2016-13 (Topic 326), “Measurement of Credit Losses on Financial Instruments,” commonly referenced as the Current Expected Credit Loss (“CECL”) model, which has changed how we estimate credit losses and may result in further increases in the required level of our allowance for credit losses;

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•inflation, securities market and monetary fluctuations, including changes in the market values of financial assets and the stability of particular securities markets;

•changes in interest rates, spreads on interest-earning assets and interest-bearing liabilities, and interest rate sensitivity;

•prepayment speeds, loan originations and credit losses;

•changes in the value of our mortgage servicing rights;

•sources of liquidity and financial resources in the amounts, at the times, and on the terms required to support our future business;

•possible credit-related impairments of securities held by us;

•results of examinations by the Board of Governors of the Federal Reserve System (the “Federal Reserve”) of the Corporation, including the possibility that such regulator may, among other things, require us to increase our allowance for loan losses or to write down assets, or restrict our ability to: engage in new products or services; engage in future mergers or acquisitions; open new branches; pay future dividends; or otherwise take action, or refrain from taking action, in order to correct activities or practices that the Federal Reserve believes may violate applicable law or constitute an unsafe or unsound banking practice;

•variances in common stock outstanding and/or volatility in common stock price;

•fair value of and number of stock-based compensation awards to be issued in future periods;

•risks related to our past or future, if any, mergers and acquisitions, including, but not limited to: reputational risks; client and customer retention risks; diversion of management’s time for integration-related issues; integration may take longer than anticipated or cost more than expected; anticipated benefits of the merger or acquisition, including any anticipated cost savings or strategic gains, may take longer or be significantly harder to achieve, or may not be realized;

•deposit attrition, operating costs, customer loss and business disruption following a merger or acquisition, including, without limitation, difficulties in maintaining relationships with employees, customers, and/or suppliers may be greater than expected;

•the credit risks of lending activities and overall quality of the composition of acquired loan, lease and securities portfolio;

•our success in continuing to generate new business in our existing markets, as well as identifying and penetrating targeted markets and generating a profit in those markets in a reasonable time;

•our ability to continue to generate investment results for customers or introduce competitive new products and services on a timely, cost-effective basis, including investment and banking products that meet customers’ needs;

•changes in consumer and business spending, borrowing and savings habits and demand for financial services in the relevant market areas;

•extent to which products or services previously offered (including but not limited to mortgages and asset back securities) require us to incur liabilities or absorb losses not contemplated at their initiation or origination;

•rapid technological developments and changes;

•technological systems failures, interruptions and security breaches, internally or through a third-party provider, could negatively impact our operations, customers and/or reputation;

•competitive pressure and practices of other commercial banks, thrifts, mortgage companies, finance companies, credit unions, securities brokerage firms, insurance companies, money-market and mutual funds and other institutions operating in our market areas and elsewhere, including institutions operating locally, regionally, nationally and internationally, together with such competitors offering banking products and services by mail, telephone, computer and the internet;

•protection and validity of intellectual property rights;

•reliance on large customers;

•technological, implementation and cost/financial risks in contracts;

•the outcome of pending and future litigation and governmental proceedings;

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•any extraordinary events (such as natural disasters, global health risks or pandemics, acts of terrorism, wars or political conflicts), including the COVID-19 pandemic, and the effects of the economic and business environments in which we operate, including our credit quality and business operations, as well as the impact on general economic and financial market conditions;

•ability to retain key employees and members of senior management;

•changes in relationships with employees, customers, and/or suppliers;

•the ability of key third-party providers to perform their obligations to us and our subsidiaries;

•our need for capital, or our ability to control operating costs and expenses or manage loan and lease delinquency rates;

•other material adverse changes in operations or earnings; and

•our success in managing the risks involved in the foregoing.

All written or oral forward-looking statements attributed to the Corporation are expressly qualified in their entirety by the factors, risks, and uncertainties set forth in the foregoing cautionary statements, along with those set forth under the caption titled “Risk Factors” beginning on page 14 of the Corporation's 2019 Annual Report. All forward-looking statements included in this Quarterly Report and the documents incorporated by reference herein are based upon the Corporation’s beliefs and assumptions as of the date of this Quarterly Report. The Corporation assumes no obligation to update any forward-looking statement, whether the result of new information, future events, uncertainties or otherwise, as of any future date. In light of these risks, uncertainties and assumptions, you should not put undue reliance on any forward-looking statements discussed in this Quarterly Report or incorporated documents. For a complete discussion of the assumptions, risks and uncertainties related to our business, you are encouraged to review our filings with the SEC, including our 2019 Annual Report, as updated by our quarterly or other reports subsequently filed with the SEC.

Brief History of the Corporation

The Bryn Mawr Trust Company (the “Bank”) received its Pennsylvania banking charter in 1889 and is a member of the Federal Reserve System. In 1986, Bryn Mawr Bank Corporation (“BMBC”, together with subsidiaries, the “Corporation”) was formed and the Bank became a wholly-owned subsidiary of BMBC. The Bank and BMBC are headquartered in Bryn Mawr, Pennsylvania, a western suburb of Philadelphia. The Corporation offers a full range of personal and business banking services, consumer and commercial loans, equipment leasing, mortgages, insurance and wealth management services, including investment management, trust and estate administration, retirement planning, custody services, and tax planning and preparation from 43 banking locations, five wealth management offices and two insurance and risk management locations in the following counties: Montgomery, Chester, Delaware, Philadelphia, and Dauphin Counties in Pennsylvania; New Castle County in Delaware; and Mercer and Camden Counties in New Jersey. The common stock of BMBC trades on the NASDAQ Stock Market (“NASDAQ”) under the symbol BMTC.

The Corporation operates in a highly competitive market area that includes local, national and regional banks as competitors along with savings banks, credit unions, insurance companies, trust companies, registered investment advisors and mutual fund families. BMBC and its subsidiaries are regulated by many agencies including the Securities and Exchange Commission (“SEC”), NASDAQ, Federal Deposit Insurance Corporation (“FDIC”), the Federal Reserve Bank of Philadelphia (the “FRB”) and the Pennsylvania Department of Banking and Securities. The goal of the Corporation is to become the preeminent community bank and wealth management organization in the Philadelphia area.

Critical Accounting Policies, Judgments and Estimates

The accounting and reporting policies of the Corporation conform to U.S. generally accepted accounting principles (“GAAP”). All significant intercompany balances and transactions are eliminated in consolidation and certain prior-period amounts have been reclassified when necessary in order to conform to current period presentation. In preparing the Consolidated Financial Statements, management is required to make estimates and assumptions that affect the reported amount of assets and liabilities as of the dates of the balance sheets and revenues and expenditures for the periods presented. Therefore, actual results could differ from these estimates. In preparing the Consolidated Financial Statements, the Corporation is required to make estimates and assumptions that affect the reported amount of assets and liabilities as of the dates of the balance sheets and revenues and expenditures for the periods presented. However, there are uncertainties inherent in making these estimates and actual results could differ from these estimates. The Corporation has identified certain areas that require estimates and assumptions, which include the allowance for credit losses (“ACL”) on loans and leases, the ACL on Off-Balance Sheet (“OBS”) Credit Exposures, the valuation of goodwill and intangible assets, the fair value of investment securities, the fair value of derivative financial instruments, and the valuation of mortgage servicing rights, deferred tax assets and liabilities, benefit plans and stock-based

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compensation. In addition, certain assets are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances.

On January 1, 2020, ASU 2016-13 (Topic 326 - Credit Losses), commonly referenced as the Current Expected Credit Loss (“CECL”) became effective for the Corporation. CECL has changed the way we estimate credit losses for loans and leases, including off-balance sheet (“OBS”) credit exposures for reporting periods beginning after January 1, 2020. For more information regarding the CECL standard, see Note 2, “Recent Accounting Pronouncements” in the accompanying Unaudited Notes to the Consolidated Financial Statements.

As a result, management has identified the accounting policies and estimates related to the ACL on loans and leases that, due to the inherent judgments and assumptions and the potential sensitivity of the financial statements to those judgments and assumptions, are critical to an understanding of our financial statements. We believe that the judgments, estimates and assumptions used in the preparation of the Company’s financial statements are appropriate. For a further description of our accounting policies, see Note 1, “Summary of Significant Accounting Policies,” in the Notes to the audited Consolidated Financial Statements in the 2019 Annual Report, as well as Note 1, “Basis of Presentation, Principles of Consolidation, and Significant Accounting Policies,” in the accompanying Notes to Unaudited Consolidated Financial Statements.

Allowance for Credit Losses on Loans and Leases

The ACL on loans and leases represents management’s estimate of all expected credit losses over the expected contractual life of our existing portfolio loans and leases. Determining the appropriateness of the ACL on loans and leases is complex and requires judgment by management about the effect of matters that are inherently uncertain. Subsequent evaluations of the then-existing loan portfolio, in light of the factors then prevailing, may result in significant changes in the ACL on loans and leases in those future periods.

The expense for credit loss recorded through earnings is the amount necessary to maintain the ACL on loans and leases at the amount of expected credit losses inherent within the loans and leases portfolio. The amount of expense and the corresponding level of ACL on loans and leases are based on management’s evaluation of the collectability of the loan and lease portfolio based on historical loss experience, reasonable and supportable forecasts, and other significant qualitative and quantitative factors. The ACL on loans and leases, as reported in our Consolidated Statements of Financial Condition, is adjusted by an expense for credit losses, which is recognized in earnings, and reduced by the charge-off of loan and lease amounts, net of recoveries. For further information on the ACL on loans and leases, see Note 4 - Loans and Leases in the accompanying Notes to Unaudited Consolidated Financial Statements.

Management employs a disciplined process and methodology to establish the ACL on loans and leases that has two basic components: first, an asset-specific component involving individual loans and leases that do not share risk characteristics with other loans and leases and the measurement of expected credit losses for such individual loans; and second, a collective (pooled) component for estimated expected credit losses for pools of loans and leases that share similar risk characteristics.

Based upon this methodology, management establishes an asset-specific ACL on loans and leases that do not share risk characteristics with other loans and leases based on the amount of expected credit losses calculated on those loans and leases and charges off amounts determined to be uncollectible. Factors we consider in measuring the extent of expected credit loss include payment status, collateral value, borrower financial condition, guarantor support and the probability of collecting scheduled principal and interest payments when due.

When a loan or lease does not share risk characteristics with other loans or leases, management measures expected credit loss as the difference between the amortized cost basis in the loan and the present value of expected future cash flows discounted at the loan’s effective interest rate except that, for collateral dependent loans, credit loss is measured as the difference between the amortized cost basis in the loan and the fair value of the underlying collateral. The fair value of the collateral is adjusted for the estimated cost to sell if repayment or satisfaction of a loan is dependent on the sale (rather than only on the operation) of the collateral. If the calculated expected credit loss is determined to be permanent, fixed or nonrecoverable, the credit loss portion of the loan will be charged off against the ACL on loans and leases. Loans and leases designated as having significantly increased credit risk are generally placed on nonaccrual and remain in that status until all principal and interest payments are current and the prospects for future payments in accordance with the loan agreement are reasonably assured, at which point the loan is returned to accrual status.

In estimating the component of the ACL on loans and leases that share common risk characteristics, loans and leases are segregated into portfolio segments based on federal call report codes which classify loans and leases based on the primary collateral supporting the loan and lease. Methods utilized by management to estimate expected credit losses include a discounted cash flow (“DCF”) methodology that discounts instrument-level contractual cash flows, adjusted for prepayments

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and curtailments, incorporating loss expectations, and a weighted average remaining maturity (“WARM”) methodology which contemplates expected losses at a pool-level, utilizing historic loss information.

Under both methodologies, management estimates the ACL on loans and leases using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. After the end of the reasonable and supportable forecast period, the loss rates revert to the long-term mean loss rate, or in the case of an input-driven predictive method, the long-term mean of the input, using a reversion period where applicable. Historical credit loss experience, including examination of loss experience at representative peer institutions when the Corporation’s first-party loss history does not result in estimations that are meaningful to users of the Corporation’s Consolidated Financial Statements, provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are considered for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as for changes in environmental conditions, such as changes in unemployment rates, property values, or other relevant factors.

The DCF methodology uses inputs of current and forecasted macroeconomic indicators to predict future loss rates. The current macroeconomic indicator utilized by the bank is the Pennsylvania unemployment rate. In building the CECL model, a correlation between this indicator and historic loss levels was developed, enabling a prediction of future loss rates related to future Pennsylvania unemployment rates. The portfolio segments utilizing the DCF methodology as of June 30, 2020 included: CRE - owner-occupied and nonowner-occupied loans, home equity lines of credit, residential mortgages (first and junior liens), construction loans and consumer loans.

The WARM methodology uses combined historic loss rates for the Bank and peer institutions, if necessary, gathered from Call Report filings. The selected period for which historic loss rates are used is dependent on management's evaluation of current conditions and expectations of future loss conditions. The portfolio segments utilizing the WARM methodology as of June 30, 2020 included leases and commercial and industrial loans.

Impact of COVID-19

In the first quarter of 2020, the World Health Organization declared the outbreak of COVID-19 a pandemic. The COVID-19 pandemic has resulted in authorities implementing numerous measures attempting to contain the spread and impact of COVID-19. Our banking products and services are delivered primarily in Southeastern Pennsylvania, Southern and Central New Jersey, and Delaware, each of which had a stay at home order in place and had closed all non-essential businesses during a period of the second quarter of 2020.

To address the economic impact in the U.S., in March and April 2020, the President signed into law four economic stimulus packages to provide relief to businesses and individuals, including the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). Among other measures, the CARES Act created funding for the Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”), which provides loans to small businesses to keep their employees on payroll and make other eligible payments. The original funding for the PPP was fully allocated by mid-April 2020, with additional funding made available on April 24, 2020 under the Paycheck Protection Program and Health Care Enhancement Act.

On April 9, 2020, the Federal Reserve took additional steps to bolster the economy by providing additional funding sources for small and mid-sized businesses as well as for state and local governments as they work through cash flow stresses caused by the COVID-19 pandemic. Additionally, the Federal Reserve has taken other steps to provide fiscal and monetary stimuli, including reducing the federal funds rate and the interest rate on the Federal Reserve’s discount window, and implementing programs to promote liquidity in certain securities markets. The Federal Reserve, along with other U.S. banking regulators, has also issued interagency guidance to financial institutions that are working with borrowers affected by the COVID-19 pandemic.

We participated in the PPP and during the second quarter of 2020 originated 1,866 loans with a recorded investment of $307.9 million. Recognizing the significance of operational risk that this portfolio poses, and the continued complexity and uncertainty surrounding evolving regulatory pronouncements regarding various aspects of the PPP, management reviewed several options for continued servicing of the PPP loan portfolio through forgiveness and beyond. After thoughtful consideration, management decided that it is in the best interests of both the Bank and our PPP borrowers that the loans be serviced by an organization that has the servicing infrastructure in place to support the significant volume and short timeframe involved in the complex and evolving PPP forgiveness process. In that regard, in late June the Bank sold substantially all of its PPP loans to The Loan Source, Inc., which, together with its servicing partner, ACAP SME, LLC, have taken over the forgiveness and ongoing servicing process for the PPP loans. In connection with the sale, the Corporation recognized a $2.4 million gain on the sale of approximately $292.1 million of PPP loans in the second quarter of 2020. The remaining loans within the Bank's PPP portfolio were sold in the third quarter of 2020 and did not result in a material impact on our Consolidated Financial Statements. Also, the Corporation recognized $1.8 million of net deferred PPP loan origination fees during the second quarter of 2020, which is included within interest and fees on loans and leases on the Consolidated Statement of Income.

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To provide relief from the economic impacts of COVID-19, the Corporation has offered assistance to our commercial, consumer and small business clients by waiving fees for early CD redemptions, overdrafts, and minimum deposit balance requirements, as well as implemented consumer and commercial loan modification programs.

The Corporation’s modification program for consumer credit products includes a six-month deferral of principal and interest, with interest continuing to accrue on unpaid principal. Upon completion of the deferral period, resumed payments will be applied to the interest accrued during the deferral period, followed by principal and interest payments through the extended maturity date. As of June 30, 2020, 209 consumer loans in the amount of $48.3 million were within their deferral periods under the program. As the Bank continues to receive and process applications, management expects additional modifications under the program.

The Corporation’s modification programs for commercial loan and lease products include a three- or six-month deferral of principal and interest or a three- or six-month period of interest-only payments, with interest continuing to accrue on unpaid principal. Upon completion of the deferral period, resumed payments will be applied to the interest accrued during the deferral period, followed by principal and interest payments through the contractual maturity date. As of June 30, 2020 1,532 commercial loans and leases in the amount of $721.9 million were within their deferral periods under the program. As the Bank continues to receive and process applications, management expects additional modifications under the program.

Based on the provisions of the CARES Act, short-term COVID-19 related modifications to consumer and commercial loans that were not more than 30 days past due as of December 31, 2019 are exempt from TDR classification under GAAP. In addition, the bank regulatory agencies issued interagency guidance stating that COVID-19 related short-term modifications (i.e., six months or less) granted to consumer or commercial loans that were less than 30 days past due as of the loan modification program implementation date are not considered TDRs. For more information, see Note 1 – Basis of Presentation, Principles of Consolidation, and Significant Accounting Policies and Note 4 –Loans and Leases to the Unaudited Consolidated Financial Statements.

As discussed in more detail below, we recorded an increase in PCL and ACL on loans and leases, both of which were driven by the current and forward-looking adverse economic impacts of the COVID-19 pandemic.

Due to the high degree of uncertainty surrounding the COVID-19 pandemic, the full extent of COVID-19’s effects on our business, operations or the economy as a whole are not yet known. However, the COVID-19 pandemic is expected to have a complex and significant adverse impact on the economy, the banking industry and the Corporation in future fiscal periods. For more information on how the risks related to COVID-19 may adversely affect our business, results of operations and financial condition, see Part II, Item 1A. Risk Factors.

Executive Overview 

The following items highlight the Corporation’s results of operations for the three and six months ended June 30, 2020, as compared to the same period in 2019, and the changes in its financial condition as of June 30, 2020 as compared to December 31, 2019. More detailed information related to these highlights can be found in the sections that follow.

Effective January 1, 2020, the Corporation adopted ASU 2016-13 (Topic 326), “Measurement of Credit Losses on Financial Instruments,” which replaces the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (“CECL”) methodology. The Corporation adopted ASC 326 using the modified retrospective approach method for all financial assets measured at amortized cost and OBS credit exposures. Results for reporting periods beginning after January 1, 2020 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. In conjunction with the adoption of CECL, the Corporation has revised its segmentation to align with the methodology applied in determining the ACL for loans and leases under CECL, which is based on federal call report codes which classify loans based on the primary collateral supporting the loan. Segmentation prior to the adoption of CECL was based on product type or purpose. As such, certain reclassifications were made to conform prior-period amounts to current period presentation. For more information, see Note 1 – Basis of Presentation, Principles of Consolidation, and Significant Accounting Policies to the Unaudited Consolidated Financial Statements.

Three Month Results of Operations

•Net income attributable to the Corporation was $15.0 million, or $0.75 diluted earnings per share, for the three months ended June 30, 2020 as compared to $15.8 million, or $0.78 diluted earnings per share for the same period in 2019.

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•Return on average equity (“ROAE”) and return on average assets (“ROAA”) for the three months ended June 30, 2020 were 10.07% and 1.16%, respectively, as compared to ROAE and ROAA of 10.89% and 1.36% respectively, for the same period in 2019.

•Tax-equivalent net interest income increased $741 thousand, or 2.0%, to $37.5 million for the three months ended June 30, 2020, as compared to $36.7 million for the same period in 2019.

•Provision for credit losses (“PCL”) on loans and leases of $4.3 million for the three months ended June 30, 2020 was an increase of $2.7 million from the $1.6 million PCL on loans and leases recorded for the same period in 2019.

•Noninterest income of $20.6 million for the three months ended June 30, 2020 increased $345 thousand as compared to $20.2 million for the same period in 2019.

•Capital markets revenue of $3.0 million for the three months ended June 30, 2020 increased $1.5 million as compared to the same period in 2019. Fees for wealth management services and insurance commissions of $9.1 million and $1.3 million, respectively, for the three months ended June 30, 2020 decreased $2.4 million and $394 thousand, respectively, as compared to the same period in 2019.

•Noninterest expense of $34.6 million for the three months ended June 30, 2020 decreased $552 thousand, from $35.2 million for the same period in 2019.

Six Month Results of Operations

•Net income attributable to the Corporation for the six months ended June 30, 2020 was $3.9 million, a decrease of $22.6 million as compared to $26.5 million for the same period in 2019. Diluted earnings per share was $0.19 for the six months ended June 30, 2020 as compared to $1.31 for the same period in 2019.

•ROAE and ROAA for the six months ended June 30, 2020 were 1.28% and 0.15%, respectively, as compared to 9.25% and 1.16% respectively, for the same period in 2019.

•Tax-equivalent net interest income decreased $595 thousand, or 0.8%, to $73.9 million for the six months ended June 30, 2020, as compared to $74.5 million for the same period in 2019.

•PCL on loans and leases of $36.6 million for the six months ended June 30, 2020 was an increase of $31.2 million from the $5.4 million PCL on loans and leases recorded for the same period in 2019.

•Noninterest income of $38.9 million for the six months ended June 30, 2020 decreased $608 thousand as compared to $39.5 million for the same period in 2019.

•Capital markets revenue of $5.3 million for the six months ended June 30, 2020 increased $1.6 million as compared to the same period in 2019. Fees for wealth management services of $20.2 million for the six months ended June 30, 2020 decreased $1.7 million as compared to the same period in 2019. Insurance commissions of $2.8 million for the six months ended June 30, 2020 decreased $533 thousand as compared to the same period in 2019.

•Noninterest expense of $71.1 million for the six months ended June 30, 2020 decreased $3.8 million, from $74.9 million for the same period in 2019.

Changes in Financial Condition

•Total assets of $5.27 billion as of June 30, 2020 increased $8.1 million from $5.26 billion as of December 31, 2019.

•Total shareholders’ equity of $603.7 million as of June 30, 2020 decreased $8.5 million from $612.2 million as of December 31, 2019.

•Total portfolio loans and leases as of June 30, 2020 were $3.72 billion, an increase of $32.9 million from $3.69 billion as of December 31, 2019.

•Total non-performing loans and leases of $8.4 million represented 0.23% of portfolio loans and leases as of June 30, 2020 as compared to $10.6 million, or 0.29% of portfolio loans and leases as of December 31, 2019.

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•The $55.0 million ACL on loans and leases, as of June 30, 2020, represented 1.48% of portfolio loans and leases, as compared to $22.6 million or 0.61% of portfolio loans and leases as of December 31, 2019.

•Total deposits of $4.24 billion as of June 30, 2020 increased $401.4 million from $3.84 billion as of December 31, 2019.

•Wealth assets under management, administration, supervision and brokerage as of June 30, 2020 were $17.01 billion, an increase of $464.8 million from $16.55 billion as of December 31, 2019.

Key Performance Ratios

Key financial performance ratios for the three and six months ended June 30, 2020 and 2019 are shown in the table below:

	Three Months Ended June 30,						Six Months Ended June 30,
	2020			2019			2020			2019
Return on average equity	10.07		%	10.89		%	1.28		%	9.25		%
Return on average assets	1.16			1.36			0.15			1.16
Tax-equivalent net interest margin	3.22			3.55			3.30			3.65
Equity to assets ratio	11.49			12.50			12.07			12.54
Basic earnings per share	$	0.75		$	0.78		$	0.19		$	1.31
Diluted earnings per share	0.75			0.78			0.19			1.31
Dividends paid or accrued per share	0.26			0.25			0.52			0.50
Dividends paid or accrued per share to net income per basic common share	34.7		%	32.1		%	273.7		%	38.2		%

The following table presents certain key period-end balances and ratios as of June 30, 2020 and December 31, 2019:

(dollars in millions, except per share amounts)	June 30, 2020			December 31, 2019
Book value per share	$	30.29		$	30.42
ACL on loans and leases as a percentage of portfolio loans and leases	1.48		%	0.61		%
Tier I capital to risk weighted assets	11.27			11.42
Loan to deposit ratio	87.7			96.0
Wealth assets under management, administration, supervision and brokerage	$	17,012.9		$	16,548.1
Portfolio loans and leases	3,722.2			3,689.3
Total assets	5,271.3			5,263.3
Total shareholders’ equity	603.7			612.2

The following sections discuss, in greater detail, the Corporation’s results of operations for the three and six months ended June 30, 2020, as compared to the same period in 2019, and the changes in its financial condition as of June 30, 2020 as compared to December 31, 2019.

Other Matters

Crusader Servicing Corporation (“Crusader”), which was an 80% owned subsidiary of Royal Bank America that was acquired by the Bank in the RBPI merger, along with the Bank as successor-in-interest to Royal Bank America, are defendants in the case captioned Snyder v. Crusader Servicing Corporation et al., Case No. 2007-01027, in the Court of Common Pleas of Montgomery County, Pennsylvania. The case involves claims brought by a former Crusader shareholder in 2007 against Crusader, its former directors and remaining shareholders related, among other things, to a purported failure to pay amounts allegedly due to Snyder for his shares of Crusader stock. On May 1, 2019, the Court rendered a decision in favor of Snyder and ordered Crusader to pay Snyder the amount of $2,190,000 plus interest at the rate of 6% from December 1, 2006. The matter was appealed, and on March 18, 2020, the Superior Court of the Commonwealth of Pennsylvania returned an opinion reversing in part and affirming in part the trial court's judgment. The effect of this was to vacate the judgment of $2,190,000 plus interest, and instead to require an appraisal process in accordance with Crusader's Shareholders' Agreement to determine the value of

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Mr. Snyder's shares. We do not believe that this ruling and any monetary award ultimately payable by Crusader will be material to the consolidated financial position, consolidated results of operations or consolidated cash flows of the Corporation.

Components of Net Income

Net income is comprised of five major elements:

•Net Interest Income, or the difference between the interest income earned on loans, leases and investments and the interest expense paid on deposits and borrowed funds;

•Provision for Credit Losses on Loans and Leases, or the amount added to the ACL on loans and leases to provide for estimated inherent losses on portfolio loans and leases;

•Noninterest Income, which is made up primarily of wealth management revenue, capital markets revenue, gains and losses from the sale of residential mortgage loans, gains and losses from the sale of available for sale investment securities and other fees from loan and deposit services;

•Noninterest Expense, which consists primarily of salaries and employee benefits, occupancy, intangible asset amortization, professional fees, due diligence, merger-related and merger integration expenses, and other operating expenses; and

•Income Tax Expense, which includes state and federal jurisdictions.

TAX-EQUIVALENT NET INTEREST INCOME

Net interest income is the primary source of the Corporation’s revenue. The below table presents a summary, for the three and six months ended June 30, 2020 and 2019, of the Corporation’s average balances and tax-equivalent yields earned on its interest-earning assets and the rates paid on its interest-bearing liabilities. The tax-equivalent net interest margin is the tax-equivalent net interest income as a percentage of average interest-earning assets. The tax-equivalent net interest spread is the difference between the weighted average tax-equivalent yield on interest-earning assets and the weighted average cost of interest-bearing liabilities. The effect of noninterest-bearing liabilities represents the effect on the net interest margin of net funding provided by noninterest-earning assets, noninterest-bearing liabilities and shareholders’ equity.

Three Months Ended June 30, 2020 Compared to the Same Period in 2019

For the three months ended June 30, 2020, tax-equivalent net interest income increased $741 thousand, or 2.0%, to $37.5 million, as compared to $36.7 million for the same period in 2019.

Items contributing to the increase in tax-equivalent net interest income included a decrease of $5.2 million in interest paid on deposits, partially offset by decreases of $4.1 million and $642 thousand in tax-equivalent interest and fees earned on loans and leases and tax-equivalent interest income on available for sale investment securities, respectively, for the three months ended June 30, 2020 as compared to the same period in 2019.

Interest expense on deposits for the three months ended June 30, 2020 decreased $5.2 million as compared to the same period in 2019. The decrease was primarily due to a 78 basis point decrease in the rate paid on average interest-bearing deposits for the three months ended June 30, 2020 as compared to the same period in 2019. The effect of the decrease in the tax-equivalent rate paid was partially offset by an increase of $174.3 million in average interest-bearing deposits for the three months ended June 30, 2020 as compared to the same period in 2019.

Tax-equivalent interest and fees earned on loans and leases for the three months ended June 30, 2020 decreased $4.1 million as compared to the same period in 2019. The decrease was primarily due to a 95 basis point decrease in the tax-equivalent yield on average loans and leases for the three months ended June 30, 2020 as compared to the same period in 2019. The effect of the decrease in the tax-equivalent yield was partially offset by an increase of $415.8 million in average loans and leases for the three months ended June 30, 2020 as compared to same period in 2019. Included in tax-equivalent interest and fees earned on loans and leases for the three months ended June 30, 2020 was the recognition of $1.8 million of net deferred PPP loan origination fees.

Tax-equivalent interest income on available for sale investment securities for the three months ended June 30, 2020 decreased $642 thousand as compared to the same period in 2019. The decrease was primarily due to a 27 basis point decrease in the tax-equivalent yield on average available for sale investment securities for the three months ended June 30, 2020 as compared to the same period in 2019 coupled with a decrease of $47.1 million in average available for sale investment securities for the three months ended June 30, 2020 as compared to the same period in 2019.

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Six Months Ended June 30, 2020 Compared to the Same Period in 2019

For the six months ended June 30, 2020, tax-equivalent net interest income decreased $595 thousand, or 0.8%, to $73.9 million, as compared to $74.5 million for the same period in 2019.

Items contributing to the decrease in tax-equivalent net interest income included decreases of $6.2 million and $967 thousand in tax-equivalent interest and fees earned on loans and leases and tax-equivalent interest income on available for sale investment securities, respectively, for the six months ended June 30, 2020 as compared to the same period in 2019. The effect of these decreases on tax-equivalent net interest income were partially offset by decreases of $5.6 million and $615 thousand in interest paid on deposits and interest paid on and short-term borrowings, respectively, for the six months ended June 30, 2020 as compared to the same period in 2019.

Tax-equivalent interest and fees earned on loans and leases for the six months ended June 30, 2020 decreased $6.2 million as compared to the same period in 2019. The decrease was primarily due to an 80 basis point decrease in the tax-equivalent yield on average loans and leases for the six months ended June 30, 2020 as compared to the same period in 2019. The effect of the decrease in the tax-equivalent yield was partially offset by an increase of $338.1 million in average loans and leases for the six months ended June 30, 2020 as compared to same period in 2019. Included in tax-equivalent interest and fees earned on loans and leases for the six months ended June 30, 2020 was the recognition of $1.8 million of net deferred PPP loan origination fees.

Tax-equivalent interest income on available for sale investment securities for the six months ended June 30, 2020 decreased $967 thousand as compared to the same period in 2019. The decrease was primarily due to a 20 basis point decrease in the tax-equivalent yield on average available for sale investment securities for the six months ended June 30, 2020 as compared to the same period in 2019 coupled with a decrease of $39.8 million in average available for sale investment securities for the six months ended June 30, 2020 as compared to the same period in 2019.

Interest expense on deposits for the six months ended June 30, 2020 decreased $5.6 million as compared to the same period in 2019. The decrease was primarily due to a 47 basis point decrease in the rate paid on average interest-bearing deposits for the six months ended June 30, 2020 as compared to the same period in 2019. The effect of the decrease in the rate paid was partially offset by an increase of $176.6 million in average interest-bearing deposits for the six months ended June 30, 2020 as compared to the same period in 2019.

Interest expense on short-term borrowings for the six months ended June 30, 2020 decreased $615 thousand as compared to the same period in 2019. The decrease was primarily due to a 133 basis point decrease in the rate paid on average short-term borrowings for the six months ended June 30, 2020 as compared to the same period in 2019. The effect of the decrease in the rate paid was partially offset by an increase of $25.9 million in average short-term borrowings for the six months ended June 30, 2020 as compared to the same period in 2019.

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Analyses of Interest Rates and Interest Differential

The tables below present the major asset and liability categories on an average daily balance basis for the periods presented, along with interest income, interest expense and key rates and yields.

	Three Months Ended June 30,
	2020						2019
(dollars in thousands)	Average Balance		Interest Income/ Expense		Average Rates Earned/ Paid		Average Balance		Interest Income/ Expense		Average Rates Earned/ Paid
Assets:
Interest-bearing deposits with banks	$	195,966	$	37	0.08	%	$	37,843	$	73	0.77	%
Investment securities - available for sale:
Taxable	516,823		2,775		2.16		560,999		3,400		2.43
Tax-exempt(4)	4,572		26		2.29		7,530		43		2.29
Total investment securities – available for sale	521,395		2,801		2.16		568,529		3,443		2.43
Investment securities – held to maturity	13,126		73		2.24		10,417		71		2.73
Investment securities – trading	7,800		24		1.24		8,572		24		1.12
Loans and leases(1)(2)(3)(4)	3,940,032		40,779		4.16		3,524,219		44,903		5.11
Total interest-earning assets	4,678,319		43,714		3.76		4,149,580		48,514		4.69
Cash and due from banks	16,263						13,725
ACL on loans and leases	(54,113)						(20,844)
Other assets	585,605						509,164
Total assets	$	5,226,074					$	4,651,625
Liabilities:
Savings, NOW, and market rate accounts	$	2,313,150	$	2,341	0.41		$	1,928,755	$	5,040	1.05
Wholesale deposits	245,052		486		0.80		345,782		2,143		2.49
Retail time deposits	410,911		1,649		1.61		520,317		2,472		1.91
Total interest-bearing deposits	2,969,113		4,476		0.61		2,794,854		9,655		1.39
Short-term borrowings	136,816		232		0.68		68,529		357		2.09
Long-term FHLB advances	46,161		155		1.35		52,397		269		2.06
Subordinated notes	98,770		1,144		4.66		98,587		1,144		4.65
Junior subordinated debt	21,814		229		4.22		21,637		352		6.53
Total interest-bearing liabilities	3,272,674		6,236		0.77		3,036,004		11,777		1.56
Noninterest-bearing deposits	1,126,139						909,945
Other liabilities	226,698						124,211
Total noninterest-bearing liabilities	1,352,837						1,034,156
Total liabilities	4,625,511						4,070,160
Shareholders’ equity	600,563						581,465
Total liabilities and shareholders’ equity	$	5,226,074					$	4,651,625
Net interest spread					2.99						3.13
Effect of noninterest-bearing sources					0.23						0.42
Net interest income/margin on earning assets(4)			$	37,478	3.22				$	36,737	3.55
Tax-equivalent adjustment(4)			$	93	0.01	%			$	126	0.01	%

(1)Non-accrual loans have been included in average loan balances, but interest on non-accrual loans has not been included for purposes of determining interest income.

(2)Includes portfolio loans and leases and loans held for sale.

(3)Interest on loans and leases includes net accretion of deferred fees of $258 thousand and $634 thousand for the three months ended June 30, 2020 and 2019, respectively.

(4)Tax rate used for tax-equivalent calculations is 21% for 2020 and 2019.

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	Six Months Ended June 30,
	2020						2019
(dollars in thousands)	Average Balance		Interest Income/ Expense		Average Rates Earned/ Paid		Average Balance		Interest Income/ Expense		Average Rates Earned/ Paid
Assets:
Interest-bearing deposits with banks	$	123,148	$	148	0.24	%	$	35,306	$	205	1.17	%
Investment securities - available for sale:
Taxable	516,534		5,840		2.27		552,391		6,763		2.47
Tax-exempt(4)	4,740		54		2.29		8,656		98		2.28
Total investment securities – available for sale	521,274		5,894		2.27		561,047		6,861		2.47
Investment securities – held to maturity	13,160		160		2.44		9,615		138		2.89
Investment securities – trading	8,164		49		1.21		8,103		46		1.14
Loans and leases(1)(2)(3)(4)	3,839,208		83,677		4.38		3,501,107		89,861		5.18
Total interest-earning assets	4,504,954		89,928		4.01		4,115,178		97,111		4.76
Cash and due from banks	14,371						14,068
Allowance for loan and lease losses	(39,950)						(20,368)
Other assets	556,120						489,794
Total assets	$	5,035,495					$	4,598,672
Liabilities:
Savings, NOW, and market rate accounts	$	2,255,215	$	7,322	0.65		$	1,863,790	$	8,804	0.95
Wholesale deposits	249,186		1,463		1.18		344,247		4,155		2.43
Retail time deposits	407,011		3,328		1.64		526,820		4,793		1.83
Total interest-bearing deposits	2,911,412		12,113		0.84		2,734,857		17,752		1.31
Short-term borrowings	138,700		685		0.99		112,844		1,300		2.32
Long-term FHLB advances	46,748		399		1.72		53,883		547		2.05
Subordinated notes	98,748		2,289		4.66		98,564		2,289		4.68
Junior subordinated debt	21,791		524		4.84		21,616		710		6.62
Total interest-bearing liabilities	3,217,399		16,010		1.00		3,021,764		22,598		1.51
Noninterest-bearing deposits	1,010,202						890,941
Other liabilities	200,107						109,165
Total noninterest-bearing liabilities	1,210,309						1,000,106
Total liabilities	4,427,708						4,021,870
Shareholders’ equity	607,787						576,802
Total liabilities and shareholders’ equity	$	5,035,495					$	4,598,672
Net interest spread					3.01						3.25
Effect of noninterest-bearing sources					0.29						0.40
Net interest income/margin on earning assets(4)			$	73,918	3.30				$	74,513	3.65
Tax-equivalent adjustment(4)			$	200	0.01	%			$	255	0.01	%

(1)Non-accrual loans have been included in average loan balances, but interest on non-accrual loans has not been included for purposes of determining interest income.

(2)Includes portfolio loans and leases and loans held for sale.

(3)Interest on loans and leases includes deferred fees of $620 thousand and $919 thousand for the six months ended June 30, 2020 and 2019, respectively.

(4)Tax rate used for tax-equivalent calculations is 21% for 2020 and 2019.

Rate/Volume Analysis (tax-equivalent basis)⁽¹⁾

The rate/volume analysis in the table below analyzes dollar changes in the components of interest income and interest expense as they relate to the change in balances (volume) and the change in interest rates (rate) of tax-equivalent net interest income for

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the three and six months ended June 30, 2020 as compared to the same period in 2019, allocated by rate and volume. The change in interest income and/or expense due to both volume and rate has been allocated to changes in volume.

	2020 Compared to 2019
(dollars in thousands)	Three Months Ended June 30,						Six Months Ended June 30,
increase/(decrease)	Volume		Rate		Total		Volume		Rate		Total
Interest Income:
Interest-bearing deposits with banks	$	1,264	$	(1,300)	$	(36)	$	1,056	$	(1,113)	$	(57)
Investment securities - taxable	(211)		(412)		(623)		(337)		(561)		(898)
Investment securities -nontaxable	(17)		—		(17)		(45)		1		(44)
Loans and leases	25,614		(29,738)		(4,124)		20,061		(26,245)		(6,184)
Total interest income	26,650		(31,450)		(4,800)		20,735		(27,918)		(7,183)
Interest expense:
Savings, NOW and market rate accounts	5,765		(8,464)		(2,699)		4,274		(5,756)		(1,482)
Wholesale deposits	(625)		(1,032)		(1,657)		(1,146)		(1,546)		(2,692)
Retail time deposits	(518)		(305)		(823)		(1,083)		(382)		(1,465)
Short-term borrowings	1,587		(1,712)		(125)		754		(1,369)		(615)
Long-term FHLB advances	(32)		(82)		(114)		(72)		(76)		(148)
Subordinated notes	—		—		—		12		(12)		—
Junior subordinated debt	20		(143)		(123)		17		(203)		(186)
Total interest expense	6,197		(11,738)		(5,541)		2,756		(9,344)		(6,588)
Interest differential	$	20,453	$	(19,712)	$	741	$	17,979	$	(18,574)	$	(595)

(1) The tax rate used in the calculation of the tax-equivalent income is 21% for 2020 and 2019.

Tax-Equivalent Net Interest Margin

The tax-equivalent net interest margin of 3.22% for the three months ended June 30, 2020 was a 33 basis point decrease from 3.55% for the same period in 2019. The decrease in the tax-equivalent net interest margin was primarily due to the reduced interest rates during the three months ended June 30, 2020 as compared to the same period in 2019 and driven by management's active balance sheet management in the current interest rate environment.

The tax-equivalent net interest margin and related components for the past five consecutive quarters are shown in the table below:

Quarter	Interest- Earning Asset Yield	Interest- Bearing Liability Cost	Net Interest Spread	Effect of Noninterest Bearing Sources	Net Interest Margin
2nd Quarter 2020	3.76%	0.77%	2.99%	0.23%	3.22%
1st Quarter 2020	4.29	1.24	3.05	0.33	3.38
4th Quarter 2019	4.39	1.41	2.98	0.38	3.36
3rd Quarter 2019	4.69	1.55	3.14	0.40	3.54
2nd Quarter 2019	4.69	1.56	3.13	0.42	3.55

Interest Rate Sensitivity

Management actively manages the Corporation’s interest rate sensitivity position. The objectives of interest rate risk management are to control exposure of net interest income changes associated with interest rate movements and to achieve sustainable growth in net interest income. The Corporation’s Asset Liability Committee (“ALCO”), using policies approved by the Corporation’s Board of Directors, is responsible for the management of the Corporation’s interest rate sensitivity position. The Corporation manages interest rate sensitivity by changing the mix, pricing and re-pricing characteristics of its assets and liabilities. This is accomplished through the management of the investment portfolio, the pricings of loans and deposit offerings and through wholesale funding. Wholesale funding is available from multiple sources including borrowings from the FHLB, the

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Federal Reserve Bank of Philadelphia’s discount window, federal funds from correspondent banks, certificates of deposit from institutional brokers, Certificate of Deposit Account Registry Service (“CDARS”), Insured Network Deposit (“IND”) Program, and Insured Cash Sweep (“ICS”).

Management utilizes several tools to measure the effect of interest rate risk on net interest income. These methods include gap analysis, market value of portfolio equity analysis, and net interest income simulations under various scenarios. The results of these analyses are compared to limits established by the Corporation’s ALCO policies and make adjustments as appropriate if the results are outside the established limits.

The below table demonstrates the annualized result of an interest rate simulation and the estimated effect that a parallel interest rate shift, or “shock”, in the yield curve and subjective adjustments in deposit pricing, might have on management’s projected net interest income over the next 12 months.

This simulation assumes that there is no growth in interest-earning assets or interest-bearing liabilities over the next twelve months. By definition, the simulation assumes static interest rates and does not incorporate forecasted changes in the yield curve. The changes to net interest income shown below are in compliance with the Corporation’s policy guidelines.

Summary of Interest Rate Simulation

	Change in Net Interest Income Over the Twelve Months Beginning After June 30, 2020				Change in Net Interest Income Over the Twelve Months Beginning After December 31, 2019
	Amount		Percentage		Amount		Percentage
+300 basis points	$	5,902	4.13	%	$	15,357	10.52	%
+200 basis points	4,291		3.01		10,217		7.00
+100 basis points	2,534		1.78		5,079		3.48
-100 basis points	(894)		0.63		(6,817)		(4.67)

The above interest rate simulation suggests that the Corporation’s balance sheet is asset sensitive as of June 30, 2020 in the +100 basis point scenario, demonstrating that a 100 basis point increase in interest rates would have a positive impact on net interest income over the next 12 months. The balance sheet is significantly less asset sensitive in a rising-rate environment as of June 30, 2020 than it was as of December 31, 2019. Rates declined significantly during the quarter due to economic conditions related to the COVID-19 pandemic. The Bank responded to these concerns by decreasing rates on deposit accounts to offset some of the decline that it would experience on the asset side. The reduction of loss of net interest income as rates decline 100 basis points is partially the result of floor rates being implemented on the asset side as well as the inability for rates to decline much further on the deposit side.

The interest rate simulation is an estimate based on assumptions, which are derived from past behavior of customers, along with expectations of future behavior relative to interest rate changes. In today’s economic environment and emerging from an extended period of very low interest rates, the reliability of management’s assumptions in the interest rate simulation model is more uncertain than in prior years. Actual customer behavior, as it relates to deposit activity, may be significantly different than expected behavior, which could cause an unexpected outcome and may result in lower net interest income than that derived from the analysis referenced above.

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Gap Analysis

The interest sensitivity, or gap analysis, identifies interest rate risk by showing repricing gaps in the Corporation’s balance sheet. All assets and liabilities are reflected based on behavioral sensitivity, which is usually the earliest of: repricing, maturity, contractual amortization, prepayments or likely call dates. Non-maturity deposits, such as NOW, savings and money market accounts are spread over various time periods based on the expected sensitivity of these rates considering liquidity. Non-rate-sensitive assets and liabilities are spread over time periods to reflect management’s view of the maturity of these funds.

Non-maturity deposits (demand deposits in particular) are recognized by the industry to have different sensitivities to interest rate environments. Consequently, it is an accepted practice to spread non-maturity deposits over defined time periods to capture that sensitivity. Commercial demand deposits are often in the form of compensating balances, and fluctuate inversely to the level of interest rates; the maturity of these deposits is reported as having a shorter life than typical retail demand deposits. Additionally, the industry practice has suggested distribution limits for non-maturity deposits. However, management has taken a more conservative approach than these limits would suggest by forecasting these deposit types with a shorter maturity. These assumptions are also reflected in the above interest rate simulation.

The following table presents the Corporation’s gap analysis as of June 30, 2020:

(dollars in millions)	0 to 90 Days			91 to 365 Days			1 - 5 Years			Over 5 Years			Non-Rate Sensitive		Total
Assets:
Interest-bearing deposits with banks	$	448.1		$	—		$	—		$	—		$	—	$	448.1
Investment securities(1)	89.2			123.1			231.0			107.7			—		551.0
Loans and leases(2)	1,374.6			497.1			1,395.0			459.6			—		3,726.3
ACL on loans and leases	—			—			—			—			(55.0)		(55.0)
Cash and due from banks	—			—			—			—			16.4		16.4
Operating lease right-of-use assets	0.7			2.2			10.4			26.0			—		39.3
Other assets	—			—			—			—			545.2		545.2
Total assets	1,912.6			622.4			1,636.4			593.3			506.6		5,271.3
Liabilities and shareholders’ equity:
Demand, noninterest-bearing	34.5			103.5			355.9			723.6			—		1,217.5
Savings, NOW and market rate	92.7			278.0			898.8			1,130.1			—		2,399.6
Time deposits	92.1			207.6			99.2			1.3			—		400.2
Wholesale non-maturity deposits	146.5			—			—			—			—		146.5
Wholesale time deposits	0.5			43.4			36.0			—			—		79.9
Short-term borrowings	28.9			—			—			—			—		28.9
Long-term FHLB advances	—			5.0			39.8			—			—		44.8
Subordinated notes	30.0			—			68.8			—			—		98.8
Junior subordinated debentures	21.8			—			—			—			—		21.8
Operating lease liabilities	0.8			2.4			11.6			28.9			—		43.7
Other liabilities	—			—			—			—			185.9		185.9
Shareholders’ equity	21.6			64.7			345.0			172.4			—		603.7
Total liabilities and shareholders’ equity	469.4			704.6			1,855.1			2,056.3			185.9		5,271.3
Interest-earning assets	1,911.9			620.2			1,626.0			567.3			—		4,725.4
Interest-bearing liabilities	412.5			534.0			1,142.6			1,131.4			—		3,220.5
Difference between interest-earning assets and interest-bearing liabilities	1,499.4			86.2			483.4			(564.1)			—		1,504.9
Cumulative difference between interest earning assets and interest-bearing liabilities	$	1,499.4		$	1,585.6		$	2,069.0		$	1,504.9		$	—	$	1,504.9
Cumulative earning assets as a % of cumulative interest-bearing liabilities	463		%	268		%	199		%	147		%

(1) Investment securities include available for sale, held to maturity and trading.

(2) Loans include portfolio loans and leases and loans held for sale. 

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The table above indicates that the Corporation is asset-sensitive in the immediate 90-day time frame and may experience an increase in net interest income during that time period if rates rise. Conversely, if rates decline, net interest income may decline. It should be noted that the gap analysis is only one tool used to measure interest rate sensitivity and should be used in conjunction with other measures such as the interest rate simulation discussed above. The gap analysis measures the timing of changes in rate, but not the true weighting of any specific component of the Corporation’s balance sheet. The asset-sensitive position reflected in this gap analysis is similar to the Corporation’s position at December 31, 2019.

PROVISION FOR CREDIT LOSSES ON LOANS AND LEASES

For the three and six months ended June 30, 2020, the Corporation recorded a PCL on loans and leases of $4.3 million and $36.6 million, respectively, bringing the June 30, 2020 ACL to $55.0 million, or 1.48% of portfolio loans and leases, as compared to an ACL of $21.2 million, or 0.60% of portfolio loans and leases, as of June 30, 2019. The ACL at June 30, 2020 reflects management's current estimate of expected future credit losses considering the adverse economic indicators and other assumptions largely driven by the COVID-19 pandemic. Net charge-offs for the three months ended June 30, 2020 were $3.4 million as compared to $1.1 million for the same period in 2019. Net charge-offs for the six months ended June 30, 2020 were $7.5 million as compared to $3.6 million for the same period in 2019.

The following table details the allocation of the ACL as of the dates indicated:

Allocation of ACL
	June 30, 2020				December 31, 2019
(dollars in thousands)	ACL		% Loans and Leases to Total Loans and Leases		ACL		% Loans and Leases to Total Loans and Leases
CRE - nonowner-occupied	$	15,331	37.0	%	$	7,960	36.2	%
CRE - owner-occupied	5,083		14.6		2,825		14.3
Home equity lines of credit	1,627		5.2		1,114		6.1
Residential mortgage - 1st liens	8,198		18.7		2,501		19.2
Residential mortgage - junior liens	521		0.9		338		1.0
Construction	6,061		5.7		1,230		5.5
Commercial & Industrial	7,988		12.3		3,835		11.7
Consumer	440		1.2		438		1.6
Leases	9,725		4.5		2,361		4.5
Total ACL on loans and leases	$	54,974	100.0	%	$	22,602	100.0	%

Asset Quality and Analysis of Credit Risk

As of June 30, 2020, total nonperforming loans and leases decreased by $2.2 million to $8.4 million, representing 0.23% of portfolio loans and leases, as compared to $10.6 million, or 0.29% of portfolio loans and leases, as of December 31, 2019. The decrease in nonperforming loans and leases was related to pay-offs and pay-downs of $2.4 million, charge-offs of $2.7 million, transfers to OREO of $380 thousand and the sale of $1.7 million of loans and leases classified as nonperforming as of December 31, 2019, offset by the addition of $5.0 million of new nonperforming loans and leases during the six months ended June 30, 2020. All nonperforming loans are evaluated for impairment and charged-off to net realizable value, when necessary.

As of June 30, 2020, the ACL on loans and leases of $55.0 million represented 1.48% of portfolio loans and leases, an increase of 87 basis points from December 31, 2019. The significant increase was driven by the current and forward-looking adverse economic impacts of the COVID-19 pandemic included in the estimation of expected credit losses on loans and leases as of June 30, 2020 as compared to our initial adoption of CECL effective January 1, 2020.

As of June 30, 2020, the Corporation had $11.8 million of TDRs, of which $10.0 million were in compliance with modified terms and excluded from non-performing loans and leases. As of December 31, 2019, the Corporation had $8.1 million of TDRs, of which $5.1 million were in compliance with modified terms, and were excluded from non-performing loans and leases. As of June 30, 2020, 1,690 loan and lease modifications totaling $768.2 million, which were related to COVID-19 and were not classified as TDRs, had been completed. For more information on our loan modification programs offered in response to the COVID-19 pandemic, which are not classified as TDRs, see COVID-19 Impact within ITEM 2. Management’s

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Discussion and Analysis of Results of Operation and Financial Condition and Note 1 – Basis of Presentation, Principles of Consolidation, and Significant Accounting Policies to the Unaudited Consolidated Financial Statements.

Management continues to be diligent in its credit underwriting process and proactive with its loan review process, including the engagement of the services of an independent outside loan review firm, which helps identify developing credit issues. Proactive steps that are taken include the procurement of additional collateral (preferably outside the current loan structure) whenever possible and frequent contact with the borrower. Management believes that timely identification of credit issues and appropriate actions early in the process serve to mitigate overall risk of loss.

Nonperforming Assets and Related Ratios

Nonperforming assets and related ratios as of June 30, 2020 and December 31, 2019 were as follows:

(dollars in thousands)	June 30, 2020			December 31, 2019
Nonperforming Assets:
Nonperforming loans and leases	$	8,418		$	10,648
Other real estate owned	—			—
Total nonperforming assets	$	8,418		$	10,648
Troubled Debt Restructurings(1):
TDRs included in non-performing loans	$	1,792		$	3,018
TDRs in compliance with modified terms	10,013			5,071
Total TDRs	$	11,805		$	8,089
Loan and Lease quality indicators:
Allowance for credit losses on loans and leases to nonperforming loans and leases	653.1		%	212.3		%
Nonperforming loans and leases to total portfolio loans and leases	0.23			0.29
Allowance for credit losses on loans and leases to total portfolio loans and leases	1.48			0.61
Nonperforming assets to total loans and leases and OREO	0.23			0.29
Nonperforming assets to total assets	0.16			0.20
Total portfolio loans and leases	$	3,722,165		$	3,689,313
Allowance for credit losses on loans and leases	54,974			22,602

(1) For more information on our loan modification programs offered in response to the COVID-19 pandemic, which are not TDRs, see COVID-19 Impact within ITEM 2. Management’s Discussion and Analysis of Results of Operation and Financial Condition and Note 1 – Basis of Presentation, Principles of Consolidation, and Significant Accounting Policies to the Unaudited Consolidated Financial Statements.

NONINTEREST INCOME

Three Months Ended June 30, 2020 Compared to the Same Period in 2019

Noninterest income of $20.6 million for the three months ended June 30, 2020 increased $345 thousand as compared to $20.2 million for the same period in 2019. The increase was primarily due to increases of $2.4 million and $1.5 million in net gain on sale of loans and capital markets revenue, respectively, partially offset by decreases of $2.4 million, $394 thousand, $265 thousand, and $249 thousand in fees for wealth management services, insurance commissions, other operating income, and service charges on deposits, respectively. The increase in net gain on sale of loans was driven by a $2.4 million gain on the sale of approximately $292.1 million of PPP loans in the second quarter of 2020. The increase in capital markets revenue was primarily due to increased volume and size of interest rate swap transactions with commercial loan customers for the three months ended June 30, 2020 as compared to the same period in 2019. The decrease in fees for wealth management services was primarily driven by $2.2 million of costs incurred in the second quarter of 2020 associated with the wind-down of BMT Investment Advisers.

Six Months Ended June 30, 2020 Compared to the Same Period in 2019

Noninterest income of $38.9 million for the six months ended June 30, 2020 decreased $608 thousand as compared to $39.5 million for the same period in 2019. The decrease was primarily due to decreases of $2.6 million, $1.7 million, and $533 thousand in other operating income, fees for wealth management services, and insurance commissions, respectively, partially offset by increases of $2.8 million and $1.6 million in net gain on sale of loans and capital markets revenue, respectively. The

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increase in net gain on sale of loans was driven by a $2.4 million gain on the sale of approximately $292.1 million of PPP loans in the second quarter of 2020. The increase in capital markets revenue was primarily due to increased volume and size of interest rate swap transactions with commercial loan customers for the six months ended June 30, 2020 as compared to the same period in 2019. The decrease in fees for wealth management services was primarily driven by $2.2 million of costs incurred in the second quarter of 2020 associated with the wind-down of BMT Investment Advisers.

The following table provides details of other operating income for the three and six months ended June 30, 2020 and 2019:

	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in thousands)	2020		2019		2020		2019
Visa debit card income	$	643	$	431	$	1,174	$	850
BOLI income	330		303		650		597
Commissions and fees	264		344		568		699
Safe deposit box rentals	82		87		162		171
Other investment income	20		411		39		447
Rental income	8		7		17		16
Gain on trading investments	1,017		214		39		946
Recovery of purchase accounting fair value loan mark	—		36		—		48
Miscellaneous other income	423		1,219		695		2,125
Other operating income	$	2,787	$	3,052	$	3,344	$	5,899

The following table provides supplemental information regarding mortgage loan originations and sales:

	As of or for the Three Months Ended June 30,						As of or for the Six Months Ended June 30,
(dollars in thousands)	2020			2019			2020			2019
Mortgage originations	$	38,771		$	49,614		$	68,134		$	84,058
Mortgage loans sold:
Servicing retained	—			—			—			—
Servicing released	31,984			21,979			46,883			31,197
Total mortgage loans sold	$	31,984		$	21,979		$	46,883		$	31,197
Percentage of originated mortgage loans sold	82.5		%	44.3		%	68.8		%	37.1		%
Servicing retained %	—			—			—			—
Servicing released %	100.0			100.0			100.0			100.0
Residential mortgage loans serviced for others	$	445,233		$	545,743		$	445,233		$	545,743
Mortgage servicing rights	3,440			4,744			3,440			4,744
Gain on sale of mortgage loans	615			622			1,213			883
Loan servicing and other fees	452			553			913			1,162
Amortization of MSRs	453			156			557			276
Impairment of MSRs	(222)			(10)			(453)			(27)

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Wealth Assets Under Management, Administration, Supervision and Brokerage (“Wealth Assets”)

Wealth Asset accounts are categorized into two groups. The first account group consists predominantly of clients whose fees are determined based on the market value of the assets held in their accounts (“Market Value” basis). The second account group consists predominantly of clients whose fees are set at fixed amounts (“Fixed Fee” basis), and, as such, are not affected by market value changes.

The following tables detail the composition of Wealth Assets as it relates to the calculation of fees for wealth management services:

(dollars in thousands)	Wealth Assets as of:
Fee Basis	June 30, 2020		March 31, 2020		December 31, 2019		September 30, 2019		June 30, 2019
Market value	$	6,661,996	$	6,001,999	$	6,977,009	$	6,396,399	$	6,346,861
Fixed fee	10,350,908		9,591,733		9,571,051		9,213,387		8,468,437
Total	$	17,012,904	$	15,593,732	$	16,548,060	$	15,609,786	$	14,815,298

	Percentage of Wealth Assets as of:
Fee Basis	June 30, 2020		March 31, 2020		December 31, 2019		September 30, 2019		June 30, 2019
Market value	39.2	%	38.5	%	42.2	%	41.0	%	42.8	%
Fixed fee	60.8	%	61.5	%	57.8	%	59.0	%	57.2	%
Total	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%

The following tables detail the composition of fees for wealth management services for the periods indicated:

(dollars in thousands)	For the Three Months Ended:
Fee Basis	June 30, 2020		March 31, 2020		December 31, 2019		September 30, 2019		June 30, 2019
Market value	$	5,525	$	8,131	$	8,126	$	7,924	$	7,802
Fixed fee	3,544		3,037		3,546		2,902		3,708
Total	$	9,069	$	11,168	$	11,672	$	10,826	$	11,510

	Percentage of Fees for Wealth Management for the Three Months Ended:
Fee Basis	June 30, 2020		March 31, 2020		December 31, 2019		September 30, 2019		June 30, 2019
Market value	60.9	%	72.8	%	69.6	%	73.2	%	67.8	%
Fixed fee	39.1	%	27.2	%	30.4	%	26.8	%	32.2	%
Total	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%

Customer Derivatives

To accommodate the risk management needs of qualified commercial customers, the Bank enters into financial derivative transactions consisting of interest rate swaps, options, risk participation agreements and foreign exchange contracts. Derivative financial instruments involve, to varying degrees, interest rate, market and credit risk. Market risk exposure from customer derivative positions is managed by simultaneously entering into matching transactions with institutional dealer counterparties that offset customer contracts in notional amount and term. Derivative contracts create counterparty credit risk with both the Bank’s customers and with institutional dealer counterparties. The Corporation manages customer counterparty credit risk through its credit policy, approval processes, monitoring procedures and by obtaining adequate collateral, when appropriate. The Bank seeks to minimize dealer counterparty credit risk by establishing credit limits and collateral agreements through industry standard agreements published by the International Swaps and Derivatives Association (ISDA) and associated credit support annex (CSA) agreements. None of the Bank’s outstanding derivative contracts associated with the customer derivative program is designated as a hedge and none is entered into for speculative purposes. Derivative instruments are recorded at fair value, with changes in fair values recognized in earnings as components of noninterest income and noninterest expense on the consolidated statements of income.

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NONINTEREST EXPENSE

Three Months Ended June 30, 2020 Compared to the Same Period in 2019

Noninterest expense of $34.6 million for the three months ended June 30, 2020 decreased $552 thousand as compared to $35.2 million for the same period in 2019. The decrease was primarily due to decreases of $448 thousand, $397 thousand, and $308 thousand in furniture, fixtures and equipment expenses, Pennsylvania bank shares tax, and advertising expenses, respectively, partially offset by increases of $512 thousand and $259 thousand in other operating expenses and professional fees, respectively.

Six Months Ended June 30, 2020 Compared to the Same Period in 2019

Noninterest expense for the six months ended June 30, 2020 decreased $3.8 million, to $71.1 million, as compared to $74.9 million for the same period in 2019. The decrease was primarily due to decreases of $4.0 million, $762 thousand, and $690 thousand in salaries and wages, employee benefits, and Pennsylvania bank shares tax, respectively, partially offset by an increase of $1.8 million in other operating expenses. The decrease in salaries and wages and employee benefits was largely driven by a pre-tax, non-recurring, charge of $4.5 million in the first quarter of 2019 related to Corporation’s voluntary Years of Service Incentive Program (the “Incentive Program”), which offered certain benefits to eligible employees who met the Incentive Program requirements and voluntarily exited from service with the Corporation, the Bank or one of their subsidiaries. The increase in other operating expenses was primarily driven by a $2.3 million increase in provision for credit losses on off-balance sheet credit exposures primarily driven by the adverse economic impacts of the COVID-19 pandemic as well as the Corporation’s adoption of CECL effective January 1, 2020.

The following table provides details of other operating expenses for the three and six months ended June 30, 2020 and 2019:

	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in thousands)	2020		2019		2020		2019
Contributions	$	521	$	410	$	968	$	754
Deferred compensation expense	654		178		(441)		721
Director fees	151		141		304		286
Dues and subscriptions	523		524		884		819
FDIC insurance	673		509		823		910
Insurance	302		217		541		431
Loan processing	139		199		282		451
Miscellaneous other expenses	1,331		761		2,651		1,751
MSR amortization and impairment	675		166		1,010		303
Other taxes	2		33		24		123
Outsourced services	63		65		125		130
Wealth custodian fees	116		98		229		216
Postage	158		188		314		390
(Release of reserve) / provision for credit losses on off-balance sheet credit exposures	(867)		(17)		2,148		(138)
Stationary and supplies	79		120		224		256
Telephone and data lines	438		446		866		870
Temporary help and recruiting	67		174		134		380
Travel and entertainment	35		336		260		509
Other operating expenses	$	5,060	$	4,548	$	11,346	$	9,162

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INCOME TAXES

Income tax expense for the three months ended June 30, 2020 was $4.0 million, a decrease of $229 thousand as compared to $4.2 million for the same period in 2019. The effective tax rate for the three months ended June 30, 2020 was 21.1%, relatively unchanged as compared to 21.2% for the same period in 2019.

Income tax expense for the six months ended June 30, 2020 was $1.1 million, a decrease of $5.9 million as compared to $7.0 million for the same period in 2019. Income before income taxes decreased $28.6 million for the six months ended June 30, 2020 as compared for the same period in 2019. The effective tax rate for the six months ended June 30, 2020 increased to 21.5% from 20.9% for the same period in 2019. The increase in the effective tax rate was primarily due to a $144 thousand decrease in net discrete tax benefits for the six months ended June 30, 2020 as compared to the same period in 2019.

BALANCE SHEET ANALYSIS

Total assets of $5.27 billion as of June 30, 2020 increased $8.1 million from $5.26 billion as of December 31, 2019. The following sections detail the balance sheet changes:

Loans and Leases

The table below compares the portfolio loans and leases outstanding at June 30, 2020 to December 31, 2019:

	June 30, 2020				December 31, 2019				Change
(dollars in thousands)	Balance		Percent of Portfolio		Balance		Percent of Portfolio		Amount		Percent
CRE - nonowner-occupied	$	1,375,904	37.0	%	$	1,337,167	36.2	%	$	38,737	2.9	%
CRE - owner-occupied	542,688		14.6		527,607		14.3		15,081		2.9
Home equity lines of credit	194,767		5.2		224,262		6.1		(29,495)		(13.2)
Residential mortgage - 1st liens	695,270		18.7		706,690		19.2		(11,420)		(1.6)
Residential mortgage - jr. liens	33,644		0.9		36,843		1.0		(3,199)		(8.7)
Construction	212,374		5.7		202,198		5.5		10,176		5.0
Commercial & Industrial	457,529		12.3		432,227		11.7		25,302		5.9
Consumer	43,762		1.2		57,241		1.6		(13,479)		(23.5)
Leases	166,227		4.5		165,078		4.5		1,149		0.7
Total portfolio loans and leases	3,722,165		100.0	%	3,689,313		100.0	%	32,852		0.9
Loans held for sale	4,116				4,249				(133)		(3.1)
Total loans and leases	$	3,726,281			$	3,693,562			$	32,719	0.9	%

Investment Securities

Investment securities available for sale as of June 30, 2020 totaled $530.6 million, as compared to $1.01 billion as of December 31, 2019. The decrease was primarily related to the maturing of $500.0 million of short-term U.S. Treasury securities in the first quarter of 2020, partially offset by increases of $12.1 million, $11.2 million, and $8.0 million of U.S. government and agency securities, mortgage-backed securities, and corporate bonds, respectively.

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Deposits

Deposits as of June 30, 2020 and December 31, 2019 were as follows:

	June 30, 2020				December 31, 2019				Change
(dollars in thousands)	Balance		Percent of Deposits		Balance		Percent of Deposits		Amount		Percent
Interest-bearing demand	$	910,441	21.5	%	$	944,915	24.6	%	$	(34,474)	(3.6)	%
Money market	1,239,523		29.2		1,106,478		28.8		133,045		12.0
Savings	249,636		5.9		220,450		5.7		29,186		13.2
Retail time deposits	400,186		9.4		405,123		10.5		(4,937)		(1.2)
Wholesale non-maturity deposits	146,463		3.5		177,865		4.6		(31,402)		(17.7)
Wholesale time deposits	79,903		1.9		89,241		2.3		(9,338)		(10.5)
Interest-bearing deposits	3,026,152		71.3		2,944,072		76.6		82,080		2.8
Noninterest-bearing deposits	1,217,496		28.7		898,173		23.4		319,323		35.6
Total deposits	$	4,243,648	100.0	%	$	3,842,245	100.0	%	$	401,403	10.4	%

Borrowings

Borrowings as of June 30, 2020 and December 31, 2019 were as follows:

	June 30, 2020				December 31, 2019				Change
(dollars in thousands)	Balance		Percent of Borrowings		Balance		Percent of Borrowings		Amount		Percent
Short-term borrowings	$	28,891	14.9	%	$	493,219	74.1	%	$	(464,328)	(94.1)	%
Long-term FHLB advances	44,837		23.1		52,269		7.8		(7,432)		(14.2)
Subordinated notes	98,794		50.8		98,705		14.8		89		0.1
Junior subordinated debentures	21,843		11.2		21,753		3.3		90		0.4
Total borrowed funds	$	194,365	100.0	%	$	665,946	100.0	%	$	(471,581)	(70.8)	%

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Capital

Consolidated shareholders' equity of the Corporation was $603.7 million, or 11.5% of total assets, as of June 30, 2020, as compared to $612.2 million, or 11.6% of total assets, as of December 31, 2019. The following table presents BMBC’s and Bank’s regulatory capital ratios and the minimum capital requirements for the Bank to be considered “Well Capitalized” by regulators as of June 30, 2020 and December 31, 2019:

	Actual				Minimum to be Well Capitalized
(dollars in thousands)	Amount		Ratio		Amount		Ratio
June 30, 2020
Total capital to risk weighted assets:
BMBC	$	569,428	15.14	%	$	375,986	10.00	%
Bank	485,780		12.93		375,633		10.00
Tier I capital to risk weighted assets:
BMBC	423,762		11.27		300,789		8.00
Bank	438,908		11.68		300,506		8.00
Common equity Tier I risk weighted assets:
BMBC	402,646		10.71		244,391		6.50
Bank	438,908		11.68		244,161		6.50
Tier I leverage ratio (Tier I capital to total quarterly average assets):
BMBC	423,762		8.44		250,950		5.00
Bank	438,908		8.75		250,775		5.00
December 31, 2019
Total capital to risk weighted assets:
BMBC	547,440		14.69		372,690		10.00
Bank	450,212		12.09		372,435		10.00
Tier I capital to risk weighted assets:
BMBC	425,773		11.42		298,152		8.00
Bank	427,250		11.47		297,948		8.00
Common equity Tier I risk weighted assets:
BMBC	404,715		10.86		242,249		6.50
Bank	427,250		11.47		242,083		6.50
Tier I leverage ratio (Tier I capital to total quarterly average assets):
BMBC	425,773		9.33		228,216		5.00
Bank	427,250		9.37		227,997		5.00

In March 2020, the U.S. banking agencies issued an interim 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. The June 30, 2020 ratios reflect the Corporation's election of the five-year transition provision.

Liquidity

BMBC’s liquidity position is managed on a daily basis as part of the daily settlement function and continuously as part of the formal asset liability management process. The Bank’s liquidity is maintained by managing its core deposits as the primary source, purchasing federal funds, selling loans in the secondary market, borrowing from the FHLB and the FRB, maintaining a highly liquid investment portfolio, and purchasing and issuing wholesale certificates of deposit as its secondary sources.

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Unused availability is detailed on the following table:

(dollars in millions)	Available Funds as of June 30, 2020		Percent of Total Borrowing Capacity		Available Funds as of December 31, 2019		Percent of Total Borrowing Capacity		Dollar Change		Percent Change
FHLB of Pittsburgh	$	1,783.7	97.5	%	$	1,110.6	67.5	%	$	673.1	60.6	%
FRB of Philadelphia	166.8		100.0		174.3		100.0		(7.5)		(4.3)
Fed Funds Lines (six banks)	74.0		100.0		79.0		100.0		(5.0)		(6.3)
Total	$	2,024.5	97.8		$	1,363.9	71.8		$	660.6	48.4

Quarterly, the ALCO reviews the Corporation’s liquidity position and reports its findings to BMBC’s Board of Directors.

The Corporation has an agreement with Insured Network Deposits to provide up to $175 million, excluding accrued interest, of money market and NOW funds at an agreed upon interest rate equal to the current Fed Funds rate plus 20 basis points. The Corporation had $146.5 million in balances as of June 30, 2020 under this program.

Management continually evaluates its borrowing capacity and sources of liquidity. Management currently believes that it has sufficient capacity to fund expected short- and long-term earning asset growth with wholesale sources, along with deposit growth from its internal branch and wealth products.

Discussion of Segments

The Corporation has two principal segments as defined by FASB ASC 280, “Segment Reporting.” The segments are Banking and Wealth Management (see Note 22 in the accompanying Notes to Unaudited Consolidated Financial Statements).

The Wealth Management segment recorded a pre-tax segment profit (“PTSP”) of $1.7 million and $5.8 million for the three and six months ended June 30, 2020, as compared to a PTSP of $4.9 million and $7.9 million for the same periods in 2019. Fees for wealth management services decreased $2.4 million and $1.7 million, respectively, for the three and six months ended June 30, 2020 as compared to the same periods in 2019. The decrease in PTSP and fees for wealth management services for the three and six months ended June 30, 2020 as compared to the same periods in 2019 was primarily driven by $2.2 million of costs incurred in the second quarter of 2020 associated with the wind-down of BMT Investment Advisers. Also contributing to the decrease in PTSP were decreases in insurance commissions of $394 thousand and $533 thousand for the three and six months ended June 30, 2020 as compared to the same periods in 2019. Effective January 1, 2020, the business of Lau Associates LLC was transitioned into the Wealth Management Division of the Bank, also reported in the Wealth Management segment.

The Banking segment recorded a PTSP of $17.3 million and a pre-tax segment loss of $860 thousand for the three and six months ended June 30, 2020, as compared to a PTSP of $15.1 million and $25.6 million for the same periods in 2019. The decrease in PTSP for the six months ended June 30, 2020 as compared to the same period in 2019 was primarily driven by the first quarter 2020 provision for credit losses on loans and leases, as calculated under the CECL framework, driven by the COVID-19 pandemic.

Off Balance Sheet Arrangements

The Corporation is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit.

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the loan agreement. Total commitments to extend credit at June 30, 2020 were $826.3 million, as compared to $828.9 million at December 31, 2019.

Standby letters of credit are conditional commitments issued by the Bank to a customer for a third party. Such standby letters of credit are issued to support private borrowing arrangements. The credit risk involved in issuing standby letters of credit is similar to that involved in granting loan facilities to customers. The Bank’s obligation under standby letters of credit at June 30, 2020 amounted to $13.2 million, as compared to $20.7 million at December 31, 2019.

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Estimated fair values of the Corporation’s off-balance sheet arrangements are based on fees and rates currently charged to enter into similar loan agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing. Since fees and rates charged for off-balance sheet items are at market levels when set, there is no material difference between the stated amount and the estimated fair value of off-balance sheet arrangements.

Contractual Cash Obligations of the Corporation as of June 30, 2020:

(dollars in thousands)	Total		Less Than 1 Year		1 - 3 Years		3 - 5 Years		More Than 5 Years
Deposits without a stated maturity	$	3,763,559	$	3,763,559	$	—	$	—	$	—
Wholesale and retail time deposit	480,089		343,479		122,473		13,255		882
Short-term borrowings	28,891		28,891		—		—		—
Long-term FHLB Advances	44,837		4,861		39,976		—		—
Subordinated Notes	100,000		—		—		—		100,000
Junior subordinated debentures	25,800		—		—		—		25,800
Operating lease liabilities	56,467		4,680		8,395		8,145		35,247
Purchase obligations	22,785		6,560		9,161		3,904		3,160
Total	$	4,522,428	$	4,152,030	$	180,005	$	25,304	$	165,089

Other Information

Effects of Inflation

Inflation has some impact on the Corporation’s operating costs. Unlike many industrial companies, however, substantially all of the Corporation’s assets and liabilities are monetary in nature. As a result, interest rates have a more significant impact on the Corporation’s performance than the general level of inflation. Over short periods of time, interest rates may not necessarily move in the same direction or in the same magnitude as prices of goods and services.

Effects of Government Monetary Policies

The earnings of the Corporation are and will be affected by domestic economic conditions and the monetary and fiscal policies of the United States government and its agencies. An important function of the Federal Reserve Board is to regulate the money supply and interest rates. Among the instruments used to implement those objectives are open market operations in United States government securities and changes in reserve requirements against member bank deposits. These instruments are used in varying combinations to influence overall growth and distribution of bank loans, investments, and deposits, and their use may also affect rates charged on loans or paid for deposits. 

The Corporation is a member of the Federal Reserve System and, therefore, the policies and regulations of the Federal Reserve Board have a significant effect on its deposits, loans and investment growth, as well as the rate of interest earned and paid, and are expected to affect the Corporation’s operations in the future. The effect of such policies and regulations upon the future business and earnings of the Corporation cannot be predicted.

ITEM 3. Quantitative and Qualitative Disclosures About Market Risks

See the discussion of quantitative and qualitative disclosures about market risks in the Corporation’s 2019 Annual Report, as updated by the disclosure in “Management’s Discussion and Analysis of Results of Operations – Impact of COVID-19,” “–Interest Rate Sensitivity,” “– Summary of Interest Rate Simulation,” “Customer Derivatives” and “– Gap Analysis” in this Quarterly Report on Form 10-Q.

ITEM 4. Controls and Procedures

As of the end of the period covered by this report, the Corporation carried out an evaluation, under the supervision and with the participation of the Corporation’s management, including the Corporation’s Chief Executive Officer, Francis J. Leto, and Chief Financial Officer, Michael W. Harrington, of the effectiveness of the design and operation of the Corporation’s disclosure controls and procedures as defined in the Exchange Act Rules 13a-15(e) and 15d-15(e). Based upon the evaluation, the Chief

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Executive Officer and Chief Financial Officer concluded that the Corporation’s disclosure controls and procedures were effective as of June 30, 2020.

The adoption of ASU 2016-13 (Topic 326 - Credit Losses) required the implementation of new accounting policies and procedures which changed the Corporation's internal controls over financial reporting for the analysis of the allowance for credit losses and related disclosures. Other than the changes related to the adoption of ASU 2016-13 (Topic 326 - Credit Losses), there were no changes during the period covered by this Quarterly Report on Form 10-Q in the Corporation’s internal controls over financial reporting that have materially affected, or are reasonably likely to materially affect, those controls.

PART II OTHER INFORMATION.

ITEM 1. Legal Proceedings.

The information required by this Item is set forth in the “Legal Matters” discussion in Note 21 “Contingencies” in the Notes to Unaudited Consolidated Financial Statements in Part I Item I of this Form 10-Q, which is incorporated herein by reference in response to this Item.

ITEM 1A. Risk Factors

The section titled Risk Factors in Part I, Item 1A of our 2019 Annual Report includes a discussion of the many risks and uncertainties we face, any one or more of which could have a material adverse effect on our business, results of operations, financial condition (including capital and liquidity), or prospects or the value of or return on an investment in the Corporation. The information presented below provides an update to, and should be read in conjunction with, the risk factors and other information contained in our 2019 Annual Report.

The recent global coronavirus (COVID-19) pandemic has led to periods of significant volatility in financial, commodities and other markets and could harm our business and results of operations.

In December 2019, a novel strain of coronavirus (COVID-19) was first reported in Wuhan, Hubei Province, China. Since then, COVID-19 infections have spread to additional countries including the United States. In March 2020, the World Health Organization declared COVID-19 to be a pandemic. Given the ongoing and dynamic nature of the circumstances, it is difficult to predict the impact of the coronavirus pandemic on our business, and there is no guarantee that our efforts to address or mitigate the adverse impacts of the coronavirus will be effective. The impact to date has included periods of significant volatility in financial, commodities and other markets. This volatility, if it continues, could have an adverse impact on our customers and on our business, financial condition and results of operations as well as our growth strategy.

Our business is dependent upon the willingness and ability of our customers to conduct banking and other financial transactions. The spread of COVID-19 has caused and could continue to cause severe disruptions in the U.S. economy at large, and has resulted and may continue to result in disruptions to our customers’ businesses, and a decrease in consumer confidence and business generally. In addition, recent actions by US federal, state and local governments to address the pandemic, including travel bans, stay-at-home orders and school, business and entertainment venue closures, may have a significant adverse effect on our customers and the markets in which we conduct our business. The extent of impacts resulting from the coronavirus pandemic and other events beyond our control will depend on future developments, which are highly uncertain and cannot be predicted, including new information which may emerge concerning the severity of the coronavirus pandemic and actions taken to contain the coronavirus or its impact, among others.

Disruptions to our customers could result in increased risk of delinquencies, defaults, foreclosures and losses on our loans. The escalation of the pandemic may also negatively impact regional economic conditions for a period of time, resulting in declines in local loan demand, liquidity of loan guarantors, loan collateral (particularly in real estate), loan originations and deposit availability.

For a description of the impact the COVID-19 pandemic has had on our business and results of operations during the period covered by this Quarterly Report on Form 10-Q, see “Management’s Discussion and Analysis of Results of Operation and Financial Condition – Impact of COVID-19” beginning at page 61. If the global response to contain COVID-19 escalates or is unsuccessful, we could experience additional effects, including a material adverse effect, on our business, financial condition, results of operations and cash flows.

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The spread of the COVID-19 outbreak and the governmental responses may disrupt banking and other financial activity in the areas in which we operate and could potentially create widespread business continuity issues for us.

The outbreak of COVID-19 and the U.S. federal, state and local governmental responses may result in a disruption in the services we provide. We rely on our third-party vendors to conduct business and to process, record, and monitor transactions. If any of these vendors are unable to continue to provide us with these services or experience interruptions in their ability to provide us with these services, it could negatively impact our ability to serve our customers. Furthermore, the coronavirus pandemic could negatively impact the ability of our employees and customers to engage in banking and other financial transactions in the geographic areas in which we operate and could create widespread business continuity issues for us. We also could be adversely affected if key personnel or a significant number of employees were to become unavailable due to infection, quarantine or other effects and restrictions of a COVID-19 outbreak in our market areas. Although we have business continuity plans and other safeguards in place, there is no assurance that such plans and safeguards will be effective. If we are unable to promptly recover from such business disruptions, our business and financial conditions and results of operations would be adversely affected. We also may incur additional costs to remedy damages caused by such disruptions, which could adversely affect our financial condition and results of operations.

Our past participation in the SBA PPP loan program exposes us to risks related to noncompliance with the PPP, as well as litigation risk related to our administration of the PPP loan program, which could have a material adverse impact on our business, financial condition and results of operations.

We participated as a lender in the PPP, a loan program administered through the SBA, that was created to help eligible businesses, organizations and self-employed persons fund their operational costs during the COVID-19 pandemic. Under this program, the SBA guarantees 100% of the amounts loaned under the PPP. The PPP opened on April 3, 2020; however, because of the short window between the passing of the CARES Act and the opening of the PPP, there is some ambiguity in the laws, rules and guidance regarding the operation of the PPP, which exposes us to risks relating to noncompliance with the PPP. For instance, other financial institutions have experienced litigation related to their process and procedures used in processing applications for the PPP. Any financial liability, litigation costs or reputational damage caused by PPP related litigation could have a material adverse impact on our business, financial condition and results of operations. As previously announced, we have sold our PPP loan portfolio, however, we may be required to repurchase, and as a result be exposed to credit risk, on sold PPP loans in certain circumstances if a determination is made by the SBA that there was a deficiency by the Bank with respect to the manner in which the loan was originated, funded, or serviced.

Interest rate volatility stemming from the COVID-19 pandemic could negatively affect our net interest income, lending activities, deposits and profitability.

Our net interest income, lending activities, deposits and profitability could be negatively affected by volatility in interest rates caused by uncertainties stemming from COVID-19. In March 2020, the Federal Reserve lowered the target range for the federal funds rate to a range from 0 to 0.25 percent, citing concerns about the impact of COVID-19 on markets and stress in the energy sector. A prolonged period of extremely volatile and unstable market conditions would likely increase our funding costs and negatively affect market risk mitigation strategies. Higher income volatility from changes in interest rates and spreads to benchmark indices could cause a loss of future net interest income and a decrease in current fair market values of our assets. Fluctuations in interest rates will impact both the level of income and expense recorded on most of our assets and liabilities and the market value of all interest-earning assets and interest-bearing liabilities, which in turn could have a material adverse effect on our net income, operating results, or financial condition.

We are subject to increasing credit risk as a result of the COVID-19 pandemic, which could adversely impact our profitability.

Our business depends on our ability to successfully measure and manage credit risk. As a commercial lender, we are exposed to the risk that the principal of, or interest on, a loan will not be paid timely or at all or that the value of any collateral supporting a loan will be insufficient to cover our outstanding exposure. In addition, we are exposed to risks with respect to the risks resulting from changes in economic and industry conditions and risks inherent in dealing with individual loans and borrowers. As the overall economic climate in the U.S., generally, and in our market areas specifically, experiences material disruption due to the COVID-19 pandemic, our borrowers may experience difficulties in repaying their loans and governmental actions may provide payment relief to borrowers affected by COVID-19 and preclude our ability to initiate foreclosure proceedings in certain circumstances and, as a result, the collateral we hold may decrease in value or become illiquid, and the level of our nonperforming loans, charge-offs and delinquencies could rise and require significant additional provisions for credit losses. Additional factors related to the credit quality of certain commercial real estate and multifamily residential loans include the duration of state and local moratoriums on evictions for non-payment of rent or other fees. The payment on these loans that are secured by income producing properties are typically dependent on the successful operation of the related real estate property and may subject us to risks from adverse conditions in the real estate market or the general economy.

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We are actively working to support our borrowers to mitigate the impact of the COVID-19 pandemic on them and on our loan portfolio, including through loan modifications that defer payments for those who experienced a hardship as a result of the COVID-19 pandemic. Although recent regulatory guidance provides that such loan modifications are exempt from the calculation and reporting of TDRs and loan delinquencies, we cannot predict whether such loan modifications may ultimately have an adverse impact on our profitability in future periods. Our inability to successfully manage the increased credit risk caused by the COVID-19 pandemic could have a material adverse effect on our business, financial condition and results of operations.

Unpredictable future developments related to or resulting from the COVID-19 pandemic could materially and adversely affect our business and results of operations.

Because there have been no comparable recent global pandemics that resulted in a similar global impact, we do not yet know the full extent of the COVID-19 pandemic’s effects on our business, operations, or the global economy as a whole. Any future development will be highly uncertain and cannot be predicted, including the scope and duration of the pandemic, the effectiveness of our work from home arrangements, third party providers’ ability to support our operation, and any actions taken by governmental authorities and other third parties in response to the pandemic. We are continuing to monitor the COVID-19 pandemic and related risks, although the rapid development and fluidity of the situation precludes any specific prediction as to its ultimate impact on us. However, if the pandemic continues to spread or otherwise results in a continuation or worsening of the current economic and commercial environments, our business, financial condition, results of operations and cash flows as well as our regulatory capital and liquidity ratios could be materially adversely affected and many of the risks described in our 2019 Annual Report will be heightened.

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ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds

Share Repurchase

The following table presents the shares repurchased by the Corporation during the second quarter of 2020:

Period	Total Number of Shares Purchased(1)(2)	Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs(3)	Maximum Number of Shares that May Yet Be Purchased Under the Plan or Programs
April 1, 2020 – April 30, 2020	414	$	25.56	—	710,032
May 1, 2020 – May 31, 2020	953	$	27.98	—	710,032
June 1, 2020 – June 30, 2020	2,879	$	27.78	—	710,032
Total	4,246	$	27.61	—

(1)On June 30, 2020, 2,017 shares were purchased by the Corporation’s deferred compensation plans through open market transactions.

(2)Includes shares purchased to cover statutory tax withholding requirements on vested stock awards for certain officers of BMBC or the Bank as follows: 414 shares on April 4, 2020, 953 shares on May 6, 2020, and 862 shares on June 5, 2020.

(3)On April 18, 2019, BMBC announced a new stock repurchase program (the “2019 Program”) pursuant to which the Corporation may repurchase up to 1,000,000 shares of BMBC's common stock. Under the 2019 Program, the Corporation may repurchase BMBC's common stock at any price, but the aggregate purchase price is not to exceed $45 million. No shares were repurchased during the three months ended June 30, 2020. As of June 30, 2020, the maximum number of shares remaining authorized for repurchase under the 2019 Program was 710,032, at an aggregate purchase price not to exceed $34.8 million.

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ITEM 3. Defaults Upon Senior Securities

None.

ITEM 4. Mine Safety Disclosures.

Not applicable.

ITEM 5. Other Information

None.

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ITEM 6. Exhibits

Exhibit No.	Description and References
3.1	Amended and Restated By-Laws, effective November 20, 2007, incorporated by reference to Exhibit 3.2 of the Corporation’s Form 8-K filed with the SEC on November 21, 2007
3.2	Amended and Restated Articles of Incorporation, effective November 21, 2007, incorporated by reference to Exhibit 3.1 of the Corporation’s Form 8-K filed with the SEC on November 21, 2007
31.1	Certification of the Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith
31.2	Certification of the Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith
*32.1	Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed herewith
*32.2	Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed herewith
101.INS XBRL	Instance Document - the Instance Document does not appear in the interactive data file because its XBRL tags are embedded within the Inline XBRL Document
101.SCH XBRL	Taxonomy Extension Schema Document, filed herewith
101.CAL XBRL	Taxonomy Extension Calculation Linkbase Document, filed herewith
101.DEF XBRL	Taxonomy Extension Definition Linkbase Document, filed herewith
101.LAB XBRL	Taxonomy Extension Label Linkbase Document, filed herewith
101.PRE XBRL	Taxonomy Extension Presentation Linkbase Document, filed herewith
104	The cover page of Bryn Mawr Bank Corporation's Quarterly Report on Form 10-Q for the quarter ended June 30, 2020, formatted in Inline XBRL (contained in Exhibit 101)
*Furnished herewith. Notwithstanding any incorporation of this Quarterly Statement on Form 10-Q in any other filing by the Registrant, Exhibits furnished herewith and designated with one (*) shall not be deemed incorporated by reference to any other filing unless specifically otherwise set forth herein or therein.

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Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

	BRYN MAWR BANK CORPORATION
Date: August 10, 2020	By:	/s/ Francis J. Leto
		Francis J. Leto
		Chief Executive Officer
		(Principal Executive Officer)
Date: August 10, 2020	By:	/s/ Michael W. Harrington
		Michael W. Harrington
		Chief Financial Officer
		(Principal Financial Officer)

Page 87

EX-31.1

Exhibit 31.1

CERTIFICATIONS

I, Francis J. Leto, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Bryn Mawr Bank Corporation;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 10, 2020	/s/ Francis J. Leto
	Francis J. Leto, Chief Executive Officer
	(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATIONS

I, Michael W. Harrington, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Bryn Mawr Bank Corporation;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 10, 2020	/s/ Michael W. Harrington
	Michael W. Harrington, Chief Financial Officer
	(Principal Financial Officer)

EX-32.1

Exhibit 32.1

Certification Pursuant to 18 U.S.C. Section 1350,

as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the quarterly report of Bryn Mawr Bank Corporation (the “Corporation”) on Form 10-Q for the quarter ended June 30, 2020, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Francis J. Leto, Chief Executive Officer of the Corporation, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge and belief:

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Corporation.

Date: August 10, 2020	/s/ Francis J. Leto
	Francis J. Leto, Chief Executive Officer
	(Principal Executive Officer)

EX-32.2

Exhibit 32.2

Certification Pursuant to 18 U.S.C. Section 1350,

as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the quarterly report of Bryn Mawr Bank Corporation (the “Corporation”) on Form 10-Q for the quarter ended June 30, 2020, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Michael W. Harrington, Chief Financial Officer of the Corporation, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge and belief:

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Corporation.

Date: August 10, 2020	/s/ Michael W. Harrington
	Michael W. Harrington, Chief Financial Officer
	(Principal Financial Officer)

XML

Cover - shares	6 Months Ended
	Jun. 30, 2020	Aug. 04, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2020
Document Transition Report	false
Entity File Number	1-35746
Entity Registrant Name	Bryn Mawr Bank Corp
Entity Incorporation, State or Country Code	PA
Entity Tax Identification Number	23-2434506
Entity Address, Address Line One	801 Lancaster Avenue
Entity Address, City or Town	Bryn Mawr
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	19010
City Area Code	610
Local Phone Number	525-1700
Title of 12(b) Security	Common Stock, $1 par value
Trading Symbol	BMTC
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		19,928,481
Entity Central Index Key	0000802681
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Amendment Flag	false

XML

Consolidated Balance Sheets - Unaudited - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Assets
Cash and due from banks	$ 16,408	$ 11,603
Interest bearing deposits with banks	448,113	42,328
Cash and cash equivalents	464,521	53,931
Investment securities available for sale, at fair value (amortized cost of $517,041 and $1,001,034 as of June 30, 2020 and December 31, 2019, respectively)	530,581	1,005,984
Investment securities held to maturity, at amortized cost (fair value of $12,995 and $12,661 as of June 30, 2020 and December 31, 2019, respectively)	12,592	12,577
Investment securities, trading	7,801	8,621
Loans held for sale	4,116	4,249
Portfolio loans and leases, originated	3,422,890	3,320,816
Portfolio loans and leases, acquired	299,275	368,497
Total portfolio loans and leases	3,722,165	3,689,313
Less: Allowance for credit losses on originated loans and leases	(51,659)	(22,526)
Less: Allowance for credit losses on acquired loans and leases	(3,315)	(76)
Allowance on loans and leases	54,974	22,602
Total loans and leases	3,667,191	3,666,711
Premises and equipment, net	61,778	64,965
Operating lease right-of-use assets	39,348	40,961
Accrued interest receivable	15,577	12,482
Mortgage servicing rights	3,440	4,450
Bank owned life insurance	59,728	59,079
Federal Home Loan Bank stock	4,506	23,744
Goodwill	184,012	184,012
Intangible assets	17,303	19,131
Other investments	17,055	16,683
Other assets	181,762	85,679
Total assets	5,271,311	5,263,259
Deposits:
Noninterest-bearing	1,217,496	898,173
Interest-bearing	3,026,152	2,944,072
Total deposits	4,243,648	3,842,245
Short-term borrowings	28,891	493,219
Long-term FHLB advances	44,837	52,269
Subordinated notes	98,794	98,705
Junior subordinated debentures	21,843	21,753
Operating lease liabilities	43,693	45,258
Accrued interest payable	7,907	6,248
Other liabilities	178,024	91,335
Total liabilities	4,667,637	4,651,032
Shareholders' equity
Common stock, par value $1; authorized 100,000,000 shares; issued 24,662,161 and 24,650,051 shares as of June 30, 2020 and December 31, 2019, respectively and outstanding of 19,927,893 and 20,126,296 as of June 30, 2020 and December 31, 2019, respectively	24,662	24,650
Paid-in capital in excess of par value	380,167	378,606
Less: Common stock in treasury at cost - 4,734,268 and 4,523,755 shares as of June 30, 2020 and December 31, 2019, respectively	(88,612)	(81,174)
Accumulated other comprehensive income, net of tax	9,019	2,187
Retained earnings	279,165	288,653
Total Bryn Mawr Bank Corporation shareholders' equity	604,401	612,922
Noncontrolling interest	(727)	(695)
Total shareholders' equity	603,674	612,227
Total liabilities and shareholders' equity	$ 5,271,311	$ 5,263,259
Treasury stock (in shares)	4,734,268	4,523,755

XML

Consolidated Balance Sheets - Unaudited (Parentheticals) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Investment securities available for sale, amortized cost	$ 517,041	$ 1,001,034
Investment securities held to maturity, fair value	$ 12,995	$ 12,661
Common stock, par value (in dollars per share)	$ 1	$ 1
Common stock, authorized (in shares)	100,000,000	100,000,000
Common stock, issued (in shares)	24,662,161	24,650,051
Common stock, outstanding (in shares)	19,927,893	20,126,296
Treasury stock (in shares)	4,734,268	4,523,755

XML

Consolidated Statements of Income - Unaudited - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Interest income:
Interest and fees on loans and leases	$ 40,690	$ 44,783	$ 83,485	$ 89,620
Interest on cash and cash equivalents	37	73	148	205
Interest on investment securities:
Taxable	2,870	3,494	6,046	6,944
Non-taxable	22	37	46	84
Dividends	2	1	3	3
Total interest income	43,621	48,388	89,728	96,856
Interest expense:
Interest on deposits	4,476	9,655	12,113	17,752
Interest on short-term borrowings	232	357	685	1,300
Interest on FHLB advances and other borrowings	155	269	399	547
Interest on subordinated notes	1,144	1,144	2,289	2,289
Interest on junior subordinated debentures	229	352	524	710
Total interest expense	6,236	11,777	16,010	22,598
Net interest income	37,385	36,611	73,718	74,258
Provision for credit losses on loans and leases	4,302	1,627	36,637	5,363
Net interest income after provision for credit losses on loans and leases	33,083	34,984	37,081	68,895
Noninterest income:
Fees for wealth management services	9,069	11,510	20,237	21,902
Insurance commissions	1,303	1,697	2,836	3,369
Capital markets revenue	2,975	1,489	5,336	3,708
Service charges on deposits	603	852	1,449	1,660
Loan servicing and other fees	452	553	913	1,162
Net gain on sale of loans	3,134	752	3,916	1,071
Net gain (loss) on sale of other real estate owned ("OREO")	0	0	148	(24)
Dividends on FHLB and FRB stock	243	316	687	727
Other operating income	2,787	3,052	3,344	5,899
Total noninterest income	20,566	20,221	38,866	39,474
Noninterest expenses:
Salaries and wages	16,926	17,038	33,915	37,939
Employee benefits	3,221	3,317	6,721	7,483
Occupancy and bank premises	3,033	3,125	6,048	6,377
Furniture, fixtures, and equipment	2,120	2,568	4,551	4,957
Advertising	196	504	597	919
Amortization of intangible assets	910	956	1,828	1,894
Professional fees	1,575	1,316	2,943	2,636
Pennsylvania bank shares tax	116	513	232	922
Data processing	1,479	1,303	2,873	2,623
Other operating expenses	5,060	4,548	11,346	9,162
Total noninterest expenses	34,636	35,188	71,054	74,912
Income before income taxes	19,013	20,017	4,893	33,457
Income tax expense	4,010	4,239	1,053	7,003
Net income	15,003	15,778	3,840	26,454
Net loss attributable to noncontrolling interest	(32)	(7)	(32)	(8)
Net income attributable to Bryn Mawr Bank Corporation	$ 15,035	$ 15,785	$ 3,872	$ 26,462
Basic (loss) earnings per common share (in dollars per share)	$ 0.75	$ 0.78	$ 0.19	$ 1.31
Diluted (loss) earnings per common share (in dollars per share)	0.75	0.78	0.19	1.31
Dividends paid or accrued per common share (in dollars per share)	$ 0.26	$ 0.25	$ 0.52	$ 0.50
Weighted-average basic shares outstanding (in shares)	19,926,737	20,144,651	19,989,948	20,156,509
Dilutive shares (in shares)	81,482	99,758	87,211	99,960
Adjusted weighted-average diluted shares (in shares)	20,008,219	20,244,409	20,077,159	20,256,469

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Consolidated Statements of Comprehensive Income - Unaudited - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Statement of Comprehensive Income [Abstract]
Net income attributable to Bryn Mawr Bank Corporation	$ 15,035	$ 15,785	$ 3,872	$ 26,462
Net change in unrealized gains on investment securities available for sale:
Unrealized investment gains, net of tax expense of $34, $1,319, $1,804 and $2,441, respectively	127	4,962	6,786	9,181
Net change in unfunded pension liability:
Change in unfunded pension liability related to unrealized loss, prior service cost and transition obligation, net of tax expense of $6, $4, $12 and $8, respectively	23	16	46	32
Total other comprehensive income	150	4,978	6,832	9,213
Total comprehensive income	$ 15,185	$ 20,763	$ 10,704	$ 35,675

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Consolidated Statements of Comprehensive Income - Unaudited (Parentheticals) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Statement of Comprehensive Income [Abstract]
Unrealized investment (losses) gains, tax (benefit) expense	$ 34	$ 1,319	$ 1,804	$ 2,441
Change in unfunded pension liability related to unrealized loss, prior service cost and transition obligation, tax expense (benefit)	$ 6	$ 4	$ 12	$ 8

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Consolidated Statements of Cash Flows - Unaudited - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Operating activities:
Net income attributable to Bryn Mawr Bank Corporation	$ 3,872	$ 26,462
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses on loans and leases	36,637	5,363
Depreciation of fixed assets	4,001	3,896
Amortization of operating lease right-of-use assets	1,613	1,828
Net amortization of investment premiums and discounts	1,891	1,316
Net gain on sale of loans	(3,916)	(1,071)
Stock based compensation	1,513	1,987
Amortization and net impairment of mortgage servicing rights	1,010	303
Net accretion of fair value adjustments	(1,989)	(2,285)
Amortization of intangible assets	1,828	1,894
Net (gain) loss on sale of OREO	(148)	24
Net increase in cash surrender value of bank owned life insurance ("BOLI")	(649)	(593)
Other, net	1,216	(832)
Loans originated for sale	(46,750)	(35,781)
Proceeds from loans sold	48,211	35,187
Provision for deferred income taxes	99	51
Change in income taxes payable/receivable, net	(4,963)	6,906
Change in accrued interest receivable	(3,095)	(727)
Change in accrued interest payable	1,659	1,592
Change in operating lease liabilities	(1,565)	(1,726)
Change in other assets	(96,979)	(68,444)
Change in other liabilities	90,831	30,744
Net cash provided by operating activities	34,327	6,094
Investing activities:
Purchases of investment securities available for sale	(120,458)	(121,976)
Purchases of investment securities held to maturity	(1,103)	(1,827)
Proceeds from maturity and paydowns of investment securities available for sale	557,125	238,349
Proceeds from maturity and paydowns of investment securities held to maturity	1,023	273
Net change in FHLB stock	19,238	(147)
Proceeds from calls of investment securities	45,500	43,285
Net change in other investments	(372)	9
Purchase of customer relationships	0	(18)
Net portfolio loan and lease originations	(337,951)	(112,046)
Proceeds from sales of loans originally classified as portfolio loans and leases	302,169	0
Purchases of premises and equipment	(814)	(6,339)
Proceeds from sale of OREO	534	309
Net cash provided by investing activities	464,891	39,872
Financing activities:
Change in deposits	401,624	33,719
Change in short-term borrowings	(464,328)	(44,539)
Dividends paid	(10,438)	(10,086)
Change in long-term FHLB advances and other borrowings	(7,501)	(7,500)
Payment of contingent consideration for business combinations	(507)	(523)
Cash payments to taxing authorities on employees' behalf from shares withheld from stock-based compensation	(144)	(45)
Net purchase of treasury stock for deferred compensation plans	(90)	(82)
Net purchase of treasury stock through publicly announced plans	(7,249)	(2,603)
Proceeds from exercise of stock options	5	622
Net cash used in financing activities	(88,628)	(31,037)
Change in cash and cash equivalents	410,590	14,929
Cash and cash equivalents at beginning of period	53,931	48,456
Cash and cash equivalents at end of period	464,521	63,385
Supplemental cash flow information:
Income taxes	5,922	4,580
Interest	14,351	21,006
Non-cash information:
Change in other comprehensive income	6,832	9,213
Change in deferred tax due to change in comprehensive income	1,816	2,449
Transfer of loans to OREO and repossessed assets	$ 386	$ 72

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Consolidated Statements of Changes in Shareholders' Equity - Unaudited - USD ($) $ in Thousands	Total	Cumulative Effect, Period Of Adoption, Adjustment	Common Stock	Paid-in Capital	Treasury Stock	Accumulated Other Comprehensive Income	Retained Earnings	Retained Earnings Cumulative Effect, Period Of Adoption, Adjustment	Noncontrolling Interest
Beginning balance (in shares) at Dec. 31, 2018			24,545,348
Beginning balance at Dec. 31, 2018	$ 564,704		$ 24,545	$ 374,010	$ (75,883)	$ (7,513)	$ 250,230		$ (685)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income attributable to Bryn Mawr Bank Corporation	26,462						26,462
Net loss attributable to noncontrolling interest	(8)								(8)
Dividends paid or accrued	(10,196)						(10,196)
Other comprehensive income (loss), net of tax expense (benefit)	9,213					9,213
Stock based compensation	1,987			1,987
Retirement of treasury stock (in shares)			(2,704)
Retirement of treasury stock	0		$ (3)	(27)	30
Net purchase of treasury stock from stock awards for statutory tax withholdings	(45)				(45)
Net treasury stock activity for deferred compensation trusts	(82)				(82)
Purchase of treasury stock through publicly announced plans	(2,603)				(2,603)
Common stock issued through share-based awards and options exercises (in shares)			39,913
Common stock issued through share-based awards and options exercises	723		$ 41	682
Ending balance (in shares) at Jun. 30, 2019			24,582,557
Ending balance at Jun. 30, 2019	590,155		$ 24,583	376,652	(78,583)	1,700	266,496		(693)
Beginning balance (in shares) at Mar. 31, 2019			24,577,248
Beginning balance at Mar. 31, 2019	575,107		$ 24,577	375,655	(76,974)	(3,278)	255,813		(686)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income attributable to Bryn Mawr Bank Corporation	15,785						15,785
Net loss attributable to noncontrolling interest	(7)								(7)
Dividends paid or accrued	(5,102)						(5,102)
Other comprehensive income (loss), net of tax expense (benefit)	4,978					4,978
Stock based compensation	850			850
Retirement of treasury stock (in shares)			(2,704)
Retirement of treasury stock	0		$ (3)	(27)	30
Net purchase of treasury stock from stock awards for statutory tax withholdings	(11)				(11)
Net treasury stock activity for deferred compensation trusts	(82)				(82)
Purchase of treasury stock through publicly announced plans	(1,546)				(1,546)
Common stock issued through share-based awards and options exercises (in shares)			8,013
Common stock issued through share-based awards and options exercises	183		$ 9	174
Ending balance (in shares) at Jun. 30, 2019			24,582,557
Ending balance at Jun. 30, 2019	$ 590,155		$ 24,583	376,652	(78,583)	1,700	266,496		(693)
Beginning balance (in shares) at Dec. 31, 2019	24,650,051		24,650,051
Beginning balance at Dec. 31, 2019	$ 612,227	$ (2,801)	$ 24,650	378,606	(81,174)	2,187	288,653	$ (2,801)	(695)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income attributable to Bryn Mawr Bank Corporation	3,872						3,872
Net loss attributable to noncontrolling interest	$ (32)								(32)
Accounting Standards Update [Extensible List]	us-gaap:AccountingStandardsUpdate201613Member
Dividends paid or accrued	$ (10,559)						(10,559)
Other comprehensive income (loss), net of tax expense (benefit)	6,832					6,832
Stock based compensation	1,513			1,513
Retirement of treasury stock (in shares)			(3,816)
Retirement of treasury stock	0		$ (4)	(41)	45
Net purchase of treasury stock from stock awards for statutory tax withholdings	(144)				(144)
Net treasury stock activity for deferred compensation trusts	(90)				(90)
Purchase of treasury stock through publicly announced plans	$ (7,249)				(7,249)
Common stock issued through share-based awards and options exercises (in shares)	338		15,926
Common stock issued through share-based awards and options exercises	$ 105		$ 16	89
Ending balance (in shares) at Jun. 30, 2020	24,662,161		24,662,161
Ending balance at Jun. 30, 2020	$ 603,674		$ 24,662	380,167	(88,612)	9,019	279,165		(727)
Beginning balance (in shares) at Mar. 31, 2020			24,655,362
Beginning balance at Mar. 31, 2020	593,179		$ 24,655	379,495	(88,540)	8,869	269,395		(695)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income attributable to Bryn Mawr Bank Corporation	15,035						15,035
Net loss attributable to noncontrolling interest	(32)								(32)
Dividends paid or accrued	(5,265)						(5,265)
Other comprehensive income (loss), net of tax expense (benefit)	150					150
Stock based compensation	624			624
Retirement of treasury stock (in shares)			(3,816)
Retirement of treasury stock	0		$ (4)	(41)	45
Net purchase of treasury stock from stock awards for statutory tax withholdings	(63)				(63)
Net treasury stock activity for deferred compensation trusts	$ (54)				(54)
Common stock issued through share-based awards and options exercises (in shares)	0		10,615
Common stock issued through share-based awards and options exercises	$ 100		$ 11	89
Ending balance (in shares) at Jun. 30, 2020	24,662,161		24,662,161
Ending balance at Jun. 30, 2020	$ 603,674		$ 24,662	$ 380,167	$ (88,612)	$ 9,019	$ 279,165		$ (727)

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Consolidated Statements of Changes in Shareholders' Equity - Unaudited (Parentheticals) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Dividends paid or accrued per common share (in dollars per share)	$ 0.26	$ 0.25	$ 0.52	$ 0.50
Retained Earnings
Dividends paid or accrued per common share (in dollars per share)	$ 0.26	$ 0.25	$ 0.52	$ 0.50
Accumulated Other Comprehensive Income
Other comprehensive loss, tax expense (benefit)	$ 40	$ 1,323	$ 1,816	$ 2,449

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Basis of Presentation, Principles of Consolidation, and Significant Accounting Policies

6 Months Ended

Jun. 30, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation, Principles of Consolidation, and Significant Accounting Policies

Basis of Presentation, Principles of Consolidation, and Significant Accounting Policies

The Unaudited Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”).

The Unaudited Consolidated Financial Statements include the accounts of Bryn Mawr Bank Corporation (“BMBC,” and together with its subsidiaries, the “Corporation”) and its consolidated subsidiaries; BMBC's primary subsidiary is The Bryn Mawr Trust Company (the “Bank”). In connection with the merger of Royal Bancshares of Pennsylvania, Inc. (“RBPI”) with and into BMBC, and the merger of Royal Bank America with and into the Bank (collectively, the "RBPI Merger"), the Corporation acquired two Delaware trusts, Royal Bancshares Capital Trust I and Royal Bancshares Capital Trust II. These two entities are not consolidated per requirements under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 810, “Consolidation” (“ASC Topic 810”). All significant intercompany balances and transactions are eliminated in consolidation and certain prior-period amounts have been reclassified when necessary in order to conform to the current period presentation.

In the opinion of management, all adjustments, which are normal and recurring in nature, necessary for a fair presentation of the consolidated financial position and the results of operations for the interim periods presented have been included. The results of operations for the three and six months ended June 30, 2020 are not necessarily indicative of the results to be expected for any other interim period or for the full year.

In preparing the Unaudited Consolidated Financial Statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the dates of the balance sheets, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.

These Unaudited Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and notes thereto in BMBC’s Annual Report on Form 10-K for the twelve months ended December 31, 2019 (the “2019 Annual Report”). Except as described below, the accounting policies applied in these Unaudited Consolidated Financial Statements are the same as those applied in the 2019 Annual Report.

Updates to Significant Accounting Policies:

A.Allowance for Credit Losses (“ACL”) on Loans and Leases:

The ACL on loans and leases represents management’s estimate of all expected credit losses over the expected contractual life of our existing portfolio loans and leases. Determining the appropriateness of the ACL on loans and leases is complex and requires judgment by management about the effect of matters that are inherently uncertain. Subsequent evaluations of the then-existing loan portfolio, in light of the factors then prevailing, may result in significant changes in the ACL on loans and leases in those future periods.

The expense for credit loss recorded through earnings is the amount necessary to maintain the ACL on loans and leases at the amount of expected credit losses inherent within the loans and leases portfolio. The amount of expense and the corresponding level of ACL on loans and leases are based on management’s evaluation of the collectability of the loan and lease portfolio based on historical loss experience, reasonable and supportable forecasts, and other significant qualitative and quantitative factors. The ACL on loans and leases, as reported in our Consolidated Statements of Financial Condition, is adjusted by an expense for credit losses, which is recognized in earnings, and reduced by the charge-off of loan and lease amounts, net of recoveries. For further information on the ACL on loans and leases, see Note 4 - Loans and Leases in the accompanying Notes to Unaudited Consolidated Financial Statements.

Management employs a disciplined process and methodology to establish the ACL on loans and leases that has two basic components: first, an asset-specific component involving individual loans and leases that do not share risk characteristics with other loans and leases and the measurement of expected credit losses for such individual loans; and second, a collective (pooled) component for estimated expected credit losses for pools of loans and leases that share similar risk characteristics.

Based upon this methodology, management establishes an asset-specific ACL on loans and leases that do not share risk characteristics with other loans and leases based on the amount of expected credit losses calculated on those loans and leases and charges off amounts determined to be uncollectible. Factors we consider in measuring the extent of expected credit loss include payment status, collateral value, borrower financial condition, guarantor support and the probability of collecting scheduled principal and interest payments when due.

When a loan or lease does not share risk characteristics with other loans or leases, management measures expected credit loss as the difference between the amortized cost basis in the loan and the present value of expected future cash flows discounted at the loan’s effective interest rate except that, for collateral dependent loans, credit loss is measured as the difference between the amortized cost basis in the loan and the fair value of the underlying collateral. The fair value of the collateral is adjusted for the estimated cost to sell if repayment or satisfaction of a loan is dependent on the sale (rather than only on the operation) of the collateral. If the calculated expected credit loss is determined to be permanent, fixed or nonrecoverable, the credit loss portion of the loan will be charged off against the ACL on loans and leases. Loans and leases designated as having significantly increased credit risk are generally placed on nonaccrual and remain in that status until all principal and interest payments are current and the prospects for future payments in accordance with the loan agreement are reasonably assured, at which point the loan is returned to accrual status.

In estimating the component of the ACL on loans and leases that share common risk characteristics, loans and leases are segregated into portfolio segments based on federal call report codes which classify loans and leases based on the primary collateral supporting the loan and lease. Methods utilized by management to estimate expected credit losses include a discounted cash flow (“DCF”) methodology that discounts instrument-level contractual cash flows, adjusted for prepayments and curtailments, incorporating loss expectations, and a weighted average remaining maturity (“WARM”) methodology which contemplates expected losses at a pool-level, utilizing historic loss information.

Under both methodologies, management estimates the ACL on loans and leases using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. After the end of the reasonable and supportable forecast period, the loss rates revert to the long-term mean loss rate, or in the case of an input-driven predictive method, the long-term mean of the input, using a reversion period where applicable. Historical credit loss experience, including examination of loss experience at representative peer institutions when the Corporation’s first-party loss history does not result in estimations that are meaningful to users of the Corporation’s Consolidated Financial Statements, provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are considered for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as for changes in environmental conditions, such as changes in unemployment rates, property values, or other relevant factors.

The DCF methodology uses inputs of current and forecasted macroeconomic indicators to predict future loss rates. The current macroeconomic indicator utilized by the bank is the Pennsylvania unemployment rate. In building the current expected credit loss (“CECL”) model utilized in the DCF methodology, a correlation between this indicator and historic loss levels was developed, enabling a prediction of future loss rates related to future Pennsylvania unemployment rates. The portfolio segments utilizing the DCF methodology as of June 30, 2020 included: CRE - owner-occupied and nonowner-occupied loans, home equity lines of credit, residential mortgages (first and junior liens), construction loans and consumer loans.

The WARM methodology uses combined historic loss rates for the Bank and peer institutions, if necessary, gathered from Call Report filings. The selected period for which historic loss rates are used is dependent on management's evaluation of current conditions and expectations of future loss conditions. The portfolio segments utilizing the WARM methodology as of June 30, 2020 included commercial and industrial loans and leases.

For those loans and leases where the ACL is measured on a collective (pool) basis, management has identified the following portfolio segments based on federal call report codes which classify loans and leases based on the primary collateral supporting the loan or lease:

Commercial Real Estate (“CRE”) Loans (owner-occupied and non-owner occupied): The Bank originates mortgage loans for multifamily properties (i.e. buildings which have five or more residential units) and other commercial real estate that is either owner-occupied or managed as an investment property (non-owner occupied) primarily within Pennsylvania, Delaware and Southern and Central New Jersey. Commercial real estate properties primarily include retail buildings/shopping centers, hotels, office/medical buildings and industrial/warehouse space. Multifamily loans are expected to be repaid from the cash flows of the underlying property so the collective amount of rents must be sufficient to cover all operating expenses, property management and maintenance, taxes and debt service. Increases in vacancy rates, interest rates or other changes in general economic conditions can have an impact on the borrower and its ability to repay the loan. Commercial real estate loans are generally considered to have a higher degree of credit risk than multifamily loans as they may be dependent on the ongoing success and operating viability of a fewer number of tenants who are occupying the property and who may have a greater degree of exposure to economic conditions.

Home equity lines of credit: The Bank originates the majority of its home equity lines of credit through its retail channel. The primary risk characteristics associated with home equity lines of credit typically involve major living or lifestyle changes to the borrower, including unemployment or other loss of income; unexpected significant expenses, such as major medical expenses,

catastrophic events, divorce and death. Home equity lines of credit are typically originated with variable or floating interest rates, which could expose the borrower to higher payments in a rising interest rate environment. Real estate values could decrease and cause the value of the underlying property to fall below the loan amount, creating additional potential loss exposure for the Bank.

Residential Mortgages secured by first liens: The Bank originates one-to-four family residential mortgage loans primarily within Pennsylvania, Delaware and Southern and Central New Jersey. These loans are secured by first liens on a primary residence or investment property. The primary risk characteristics associated with residential mortgage loans typically involve major living or lifestyle changes to the borrower, including unemployment or other loss of income; unexpected significant expenses, such as major medical expenses, catastrophic events, divorce or death. Residential mortgage loans that have adjustable rates could expose the borrower to higher payments in a rising interest rate environment. Real estate values could decrease and cause the value of the underlying property to fall below the loan amount, creating additional potential loss exposure for the Bank.

Residential Mortgages secured by junior liens: The Bank originates loans secured by junior liens against one to four family properties primarily within Pennsylvania, Delaware and Southern and Central New Jersey. Loans secured by junior liens are primarily in the form of an amortizing home equity loan. These loans are subordinate to a first mortgage which may be from another lending institution. The primary risk characteristics associated with loans secured by junior liens typically involve major living or lifestyle changes to the borrower, including unemployment or other loss of income, unexpected significant expenses, such as for major medical expenses, catastrophic events, divorce or death. Real estate values could decrease and cause the value of the property to fall below the loan amount, creating additional potential loss exposure for the Bank.

Construction: The Bank originates construction loans to finance land development preparatory to erecting new structures or the on-site construction of industrial, commercial, or residential buildings. Construction loans include not only construction of new structures, but also additions or alterations to existing structures and the demolition of existing structures to make way for new structures. Construction loans are generally secured by real estate. The primary risk characteristics are specific to the uncertainty on whether the construction will be completed according to the specifications and schedules. Factors that may influence the completion of construction may be customer specific, such as the quality and depth of property management, or related to changes in general economic conditions.

Commercial & Industrial: The Bank originates lines of credit and term loans to operating companies for business purposes. The loans are generally secured by business assets such as accounts receivable, inventory, business vehicles and equipment as well as the stock of a company, if privately held. Commercial & Industrial loans are typically repaid first by the cash flows generated by the borrower’s business operations. The primary risk characteristics are specific to the underlying business and its ability to generate sustainable profitability and positive cash flow. Factors that may influence a borrower's ability to repay their loan include demand for the business’ products or services, the quality and depth of management, the degree of competition, regulatory changes, and general economic conditions. The ability of the Bank to foreclose and realize sufficient value from business assets securing these loans is often uncertain. To mitigate the risk characteristics of commercial and industrial loans, commercial real estate may be included as a secondary source of collateral. The Bank will often require more frequent reporting requirements from the borrower in order to better monitor its business performance.

Consumer: The Bank originates or lines of credit to individuals for household, family, and other personal expenditures as well as overdrawn customer deposit balances which are reported as loans. This also represents all other loans that cannot be categorized in any of the previous mentioned loan segments. Consumer loans generally have higher interest rates and shorter terms than residential loans but tend to have higher credit risk due to the type of collateral securing the loan or in some cases the absence of collateral.

Leases: The Bank’s wholly-owned subsidiary Bryn Mawr Equipment Financing, Inc. specializes in equipment leases for small- and mid-sized businesses nationally and across a broad range of industries. The Bank’s credit risk generally results from the potential default of borrowers or lessees, which may be driven by customer specific or broader industry related conditions.

Accrued interest receivable on loans and leases, which is reported in Accrued interest receivable on the Consolidated Balance Sheet, totaled $12.5 million as of June 30, 2020 and is excluded from the estimate of credit losses.

B.ACL on Off-Balance Sheet (“OBS”) Credit Exposures

Management estimates expected credit losses over the contractual period in which the Corporation is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Corporation. The ACL on OBS credit exposure, included within Other Liabilities on the Consolidated Balance Sheet, is adjusted as a provision for credit loss expense included within other operating expense on the Consolidated Statement of Income. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be

funded over its estimated life. Management estimates the amount of expected losses by calculating a commitment usage factor over the contractual period for exposures that are not unconditionally cancellable by the bank and applying the loss factors used in the ACL on loans and leases methodology to the results of the usage calculation to estimate the liability for credit losses related to unfunded commitments for each loan type. No credit loss estimate is reported for OBS credit exposures that are unconditionally cancellable by the Bank.

The ACL on OBS credit exposure as of June 30, 2020 was $3.3 million. For the three months ended June 30, 2020 the Corporation recorded a $867 thousand release of reserves for credit losses on OBS credit exposures. For the six months ended June 30, 2020, the Corporation recorded a $2.1 million provision for credit losses on OBS credit exposures.

C.Troubled Debt Restructurings (“TDRs”)

The Corporation has implemented various consumer and commercial loan modification programs to provide its borrowers relief from the economic impacts of COVID-19. In accordance with the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), loans to borrowers experiencing financial difficulty related to the COVID-19 pandemic which were granted short-term modifications after March 1, 2020 and which were not more than 30 days past due as of December 31, 2019 are exempt from TDR classification. In addition, for loans modified in response to the COVID-19 pandemic that do not meet the above delinquency criteria (e.g., not more than 30 days past due as of December 31, 2019), the Corporation applies the guidance included in an interagency statement issued by the bank regulatory agencies. This guidance states that loan modifications performed in light of the COVID-19 pandemic, including loan payment deferrals that are up to six months in duration, that were granted to borrowers who were less than 30 days past due as of the implementation date of a loan modification program or modifications granted under government mandated modification programs, are also exempt from TDR classification. For loan modifications that include a payment deferral and are not TDRs, the borrower’s past due and nonaccrual status will not be impacted during the deferral period. Interest income will continue to be recognized over the contractual life of the loan. For more information on the Corporation's TDR accounting, see Note 1 – Summary of Significant Accounting Policies to the Consolidated Financial Statements of the Corporation’s 2019 Annual Report.

D.Purchased Credit Deteriorated (“PCD”) Loans and Leases

The Corporation has purchased loans and leases, some of which have experienced more than insignificant credit deterioration since origination. PCD loans are recorded at the amount paid. An ACL is determined using the same methodology as other portfolio loans and leases. The initial ACL determined on a collective basis is allocated to individual loans. The loan’s purchase price is grossed-up by adding the allocated ACL to arrive at its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan or lease is a noncredit discount or premium, which is amortized into interest income over the life of the loan or lease. Subsequent changes to the ACL associated with PCD loans or leases are recorded through provision expense.

E.ACL on Held to Maturity Securities

Management measures expected credit losses on held to maturity debt securities on a collective basis by major security type. The Corporation’s held to maturity debt securities consist of mortgage-backed securities issued by U.S. government entities and agencies. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies and have a long history of no credit losses. With respect to these securities, management considers the history of credit losses, current conditions and reasonable and supportable forecasts, which may indicate that the expectation that nonpayment of the amortized cost basis is or continues to be zero, even if the U.S. government were to default. Therefore, for those securities, the Corporation does not record expected credit losses. Accrued interest receivable on held to maturity debt securities, which is reported in Accrued interest receivable on the Consolidated Balance Sheet, totaled $36 thousand as of June 30, 2020 and is excluded from the estimate of credit losses.

F.ACL on Available for Sale Securities

For available for sale debt securities in an unrealized loss position, management first assesses whether it intends to sell, or it is more likely than not it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For available for sale debt securities that do not meet the aforementioned criteria, management evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any explicit or implicit guarantees by the U.S. government, any changes to the rating of the security by the rating agency, and adverse conditions specifically related to the security, among other factors.

If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit loss is recognized in other comprehensive income.

Changes in the ACL on available for sale debt securities are recorded as provision for (or release of) credit loss expense. Losses are charged against the ACL on available for sale debt securities when management believes the uncollectibility of an available for sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met.

Accrued interest receivable on available for sale debt securities, which is reported in Accrued interest receivable on the Consolidated Balance Sheet, totaled $1.9 million at June 30, 2020 and is excluded from the estimate of credit losses.

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Recent Accounting Pronouncements

6 Months Ended

Jun. 30, 2020

Accounting Policies [Abstract]

Recent Accounting Pronouncements

Recent Accounting Pronouncements

The following FASB Accounting Standards Updates (“ASUs”) are divided into pronouncements which have been adopted by the Corporation since January 1, 2020, and those which are not yet effective and have been evaluated or are currently being evaluated by management as of June 30, 2020.

Adopted Pronouncements:

FASB ASU 2016-13 (Topic 326), “Measurement of Credit Losses on Financial Instruments”

On January 1, 2020, the Corporation adopted ASU 2016-13 (Topic 326), “Measurement of Credit Losses on Financial Instruments,” which replaces the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (or CECL) methodology. This standard eliminates the Provision for Loan and Lease Losses and Allowance for Loan and Lease Losses line items and establishes the Provision for Credit Losses (“PCL”) and Allowance for Credit Losses (“ACL”) line items.

The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables and held-to-maturity debt securities. It also applies to OBS credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and net investments in leases recognized by a lessor in accordance with Topic 842 on leases. In addition, ASC 326 made changes to the accounting for available for sale debt securities. One such change is to require credit losses to be presented as an allowance rather than as a write-down on available-for-sale debt securities management does not intend to sell or believes that it is more likely than not they will be required to sell.

The Corporation adopted ASC 326 using the modified retrospective approach method for all financial assets measured at amortized cost and OBS credit exposures. Results for reporting periods beginning after January 1, 2020 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. In conjunction with the adoption of CECL, the Corporation has revised its segmentation to align with the methodology applied in determining the ACL for loans and leases under CECL, which is based on federal call report codes which classify loans based on the primary collateral supporting the loan. Segmentation prior to the adoption of CECL was based on product type or purpose. As such, certain reclassifications were made to conform prior-period amounts to current period presentation.

Upon adoption, the Corporation's total ACL increased by $4.0 million, or 17.5%, which included an increase in ACL on loans and leases of $3.2 million and an increase in the reserve for OBS exposures, which is included within Other Liabilities on the Consolidated Balance Sheet, of $821 thousand. The increase in the total ACL resulted in a $2.8 million decrease to retained earnings, net of deferred taxes. The overall change in total ACL upon adoption was primarily due to the move to a life of loan reserve estimate as well as methodology changes required under CECL.

The Corporation adopted CECL using the prospective transition approach for financial assets purchased with credit deterioration (“PCD”) that were previously classified as purchased credit impaired (“PCI”) and accounted for under ASC 310-30. In accordance with the standard, management did not reassess whether PCI assets met the criteria of PCD assets as of the date of adoption. On January 1, 2020, the amortized cost basis of the PCD assets were adjusted to reflect the addition of $481 thousand of the allowance for credit losses. The remaining noncredit discount (based on the adjusted amortized cost basis) will be accreted into interest income at the effective interest rate as of January 1, 2020.

The following table illustrates the adoption of CECL on January 1, 2020:

	January 1, 2020
	Pre-CECL Adoption		Reclassification to CECL Portfolio Segmentation		Pre-CECL Adoption Portfolio Segmentation		Post-CECL Adoption Portfolio Segmentation		Impact of CECL Adoption
Assets:
Loans and leases:
Commercial mortgage	$	1,913,430	$	(1,913,430)	$	—	$	—	$	—
CRE - nonowner-occupied	—		1,337,167		1,337,167		1,337,464		297
CRE - owner-occupied	—		527,607		527,607		527,607		—
Home equity lines of credit	194,639		29,623		224,262		224,262		—
Residential mortgage	489,903		(489,903)		—		—		—
Residential mortgage - first liens	—		706,690		706,690		706,843		153
Residential mortgage - junior liens	—		36,843		36,843		36,843		—
Construction	159,867		42,331		202,198		202,198		—
Commercial & Industrial	709,257		(277,030)		432,227		432,248		21
Consumer	57,139		102		57,241		57,241		—
Leases	165,078		—		165,078		165,088		10
Total loans and leases	$	3,689,313	$	—	$	3,689,313	$	3,689,794	$	481
ACL on loans and leases
Commercial mortgage	$	10,434	$	(10,434)	$	—	$	—	$	—
CRE - nonowner-occupied	—		7,960		7,960		7,493		(467)
CRE - owner-occupied	—		2,825		2,825		2,841		16
Home equity lines of credit	890		224		1,114		1,068		(46)
Residential mortgage	1,538		(1,538)		—		—		—
Residential mortgage - first liens	—		2,501		2,501		4,909		2,408
Residential mortgage - junior liens	—		338		338		417		79
Construction	997		233		1,230		871		(359)
Commercial & Industrial	6,029		(2,194)		3,835		3,676		(159)
Consumer	353		85		438		578		140
Leases	2,361		—		2,361		3,955		1,594
Total ACL on loans and leases	$	22,602	$	—	$	22,602	$	25,808	$	3,206
Liabilities:
ACL on OBS credit exposures	$	360	$	—	$	360	$	1,181	$	821
Total ACL	$	22,962	$	—	$	22,962	$	26,989	$	4,027
Retained earnings:
Total increase in ACL									$	4,027
Balance sheet reclassification									(481)
Total pre-tax impact									3,546
Tax effect									(745)
Decrease to retained earnings									$	2,801

FASB ASU 2017-04 (Topic 350), “Intangibles – Goodwill and Others”

Issued in January 2017, ASU 2017-04 simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. ASU 2017-04 became effective for the Corporation on January 1, 2020, and will follow such guidance in connection with our next annual impairment testing, or prior to that if any such change constitutes a triggering event outside of the quarter from when the annual goodwill impairment test is performed. Management does not expect the adoption of this ASU to have a material impact on our Consolidated Financial Statements and related disclosures.

FASB ASU 2018-13, “Fair Value Measurement Disclosure Framework”

Issued in August 2018, ASU 2018-13 modifies, adds and removes certain disclosures aimed to improve the overall usefulness of the disclosure requirements for fair value measurements. The guidance became effective for the Corporation on January 1, 2020 and the adoption of this ASU did not have a material impact on our Consolidated Financial Statements and related disclosures.

Pronouncements Not Yet Effective:

FASB ASU 2018-14 (Topic 715), “Compensation-Retirement Benefits - Defined Benefit Plans-General”

Issued in August 2018, ASU 2018-14, modifies, adds and removes certain disclosures aimed to improve the overall usefulness of the disclosure requirements to financial statement users. The guidance is effective for annual periods beginning after December 15, 2020. Early adoption is permitted. Use of the retrospective method is required. Management does not expect the adoption of this ASU to have a material impact on our Consolidated Financial Statements and related disclosures.

FASB ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes”

Issued in December 2019, ASU 2019-12 adds new guidance to simplify accounting for income taxes, changes the accounting for certain income tax transactions and makes minor improvements to the codification. The guidance is effective for annual periods beginning after December 15, 2020. Early adoption is permitted. Management does not expect the adoption of this ASU to have a material impact on our Consolidated Financial Statements and related disclosures.

FASB ASU No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting”

Issued in March 2020, ASU No. 2020-04 provides optional guidance to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. Specifically, the guidance permits an entity, when certain criteria are met, to consider amendments to contracts made to comply with reference rate reform to meet the definition of a modification under GAAP. It further allows hedge accounting to be maintained and a one-time transfer or sale of qualifying held-to-maturity securities. The expedients and exceptions provided by the amendments are permitted to be adopted any time through December 31, 2022 and do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for certain optional expedients elected for certain hedging relationships existing as of December 31, 2022. Management is currently evaluating the potential impact of ASU 2020-04 on our Consolidated Financial Statements and related disclosures.

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Investment Securities

6 Months Ended

Jun. 30, 2020

Investments, Debt and Equity Securities [Abstract]

Investment Securities

Investment Securities

The amortized cost and fair value of investment securities available for sale as of June 30, 2020 and December 31, 2019 are as follows:

As of June 30, 2020

(dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. Treasury securities	$	100	$	—	$	—	$	100
Obligations of the U.S. government and agencies	113,046		1,120		(17)		114,149
Obligations of state and political subdivisions	4,553		30		—		4,583
Mortgage-backed securities	365,521		12,056		(373)		377,204
Collateralized mortgage obligations	25,171		702		—		25,873
Corporate bonds	8,000		22		—		8,022
Other investment securities	650		—		—		650
Total	$	517,041	$	13,930	$	(390)	$	530,581

As of December 31, 2019

(dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. Treasury securities	$	500,066	$	35	$	—	$	500,101
Obligations of the U.S. government and agencies	102,179		193		(352)		102,020
Obligations of state and political subdivisions	5,366		13		—		5,379
Mortgage-backed securities	360,977		5,182		(157)		366,002
Collateralized mortgage obligations	31,796		195		(159)		31,832
Other investment securities	650		—		—		650
Total	$	1,001,034	$	5,618	$	(668)	$	1,005,984

The following tables present the aggregate amount of gross unrealized losses as of June 30, 2020 and December 31, 2019 on available for sale investment securities classified according to the amount of time those securities have been in a continuous unrealized loss position:

As of June 30, 2020

	Less than 12 Months				12 Months or Longer				Total
(dollars in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Obligations of the U.S. government and agencies	$	6,005	$	(17)	$	—	$	—	$	6,005	$	(17)
Mortgage-backed securities	32,503		(373)		—		—		32,503		(373)
Total	$	38,508	$	(390)	$	—	$	—	$	38,508	$	(390)

As of December 31, 2019

	Less than 12 Months				12 Months or Longer				Total
(dollars in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Obligations of the U.S. government and agencies	$	48,497	$	(315)	$	7,966	$	(37)	$	56,463	$	(352)
Mortgage-backed securities	33,783		(119)		5,977		(38)		39,760		(157)
Collateralized mortgage obligations	6,978		(67)		10,861		(92)		17,839		(159)
Total	$	89,258	$	(501)	$	24,804	$	(167)	$	114,062	$	(668)

As of June 30, 2020, the Corporation’s available for sale investment securities consisted of 392 securities, 14 of which were in an unrealized loss position.

As of June 30, 2020, management had not made a decision to sell any of the Corporation’s available for sale investment securities in an unrealized loss position, nor did management consider it more likely than not that it would be required to sell such securities before recovery of their amortized cost basis. Management has evaluated available for sale debt securities that are in an unrealized loss position and has determined that the decline in value is unrelated to credit loss and is related to the change in market interest rates since purchase. Factors considered in this evaluation included the extent to which fair value is less than amortized cost, any explicit or implicit guarantees by the U.S. government, any changes to the rating of the security by the rating agency, and adverse conditions specifically related to the security, among other factors. As of June 30, 2020, approximately 97.0% of the Corporation’s available for sale investment securities were U.S. Treasuries or mortgage-backed securities or collateral mortgage obligations which were issued or guaranteed by U.S. government-sponsored entities and agencies. In addition, none of the available for sale debt securities held by the Corporation are past due as of June 30, 2020.

As of June 30, 2020 and December 31, 2019, there were no holdings of securities of any one issuer, other than the U.S. government and its agencies, in an amount greater than 10% of shareholders’ equity.

As of June 30, 2020 and December 31, 2019, securities having a fair value of $268.2 million and $156.4 million, respectively, were specifically pledged as collateral for public funds, trust deposits, the Federal Reserve Bank of Philadelphia (the “FRB”) discount window program, Federal Home Loan Bank (“FHLB”) borrowings, collateral requirements in derivative contracts, and other purposes. Advances by the FHLB are collateralized by a blanket lien on non-pledged, mortgage-related loans as part of the Corporation’s borrowing agreement with the FHLB as well as certain securities individually pledged by the Corporation.

The amortized cost and fair value of available for sale investment and mortgage-related securities available for sale as of June 30, 2020 and December 31, 2019, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	June 30, 2020				December 31, 2019
(dollars in thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Investment securities:
Due in one year or less	$	2,511	$	2,514	$	504,851	$	504,890
Due after one year through five years	11,808		11,905		38,710		38,623
Due after five years through ten years	102,829		103,479		53,598		53,457
Due after ten years	9,201		9,606		11,102		11,180
Subtotal	126,349		127,504		608,261		608,150
Mortgage-related securities(1)	390,692		403,077		392,773		397,834
Total	$	517,041	$	530,581	$	1,001,034	$	1,005,984

(1) Expected maturities of mortgage-related securities may differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

The amortized cost and fair value of investment securities held to maturity as of June 30, 2020 and December 31, 2019 are as follows:

As of June 30, 2020

(dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Mortgage-backed securities	$	12,592	$	403	$	—	$	12,995

As of December 31, 2019

(dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Mortgage-backed securities	$	12,577	$	104	$	(20)	$	12,661

The Corporation had no held to maturity securities with gross unrealized losses as of June 30, 2020. The following table presents the aggregate amount of gross unrealized losses as of December 31, 2019 on held to maturity securities classified according to the amount of time those securities have been in a continuous unrealized loss position:

As of December 31, 2019

	Less than 12 Months				12 Months or Longer				Total
(dollars in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Mortgage-backed securities	$	3,159	$	(20)	$	—	$	—	$	3,159	$	(20)

As of June 30, 2020, none of the Corporation’s held to maturity investment securities were in an unrealized loss position. The Corporation’s held to maturity debt securities consist of mortgage-backed securities issued by U.S. government entities and agencies. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies and have a long history of no credit losses. With respect to these securities, the bank considers the history of credit

losses, current conditions and reasonable and supportable forecasts, which may indicate that the expectation that nonpayment of the amortized cost basis is or continues to be zero, even if the U.S. government were to default. The bank does not record expected credit losses for these securities. Accrued interest receivable on held to maturity debt securities totaled $36 thousand at June 30, 2020 and is excluded from the estimate of credit losses.

The amortized cost and fair value of held to maturity investment securities as of June 30, 2020 and December 31, 2019, by contractual maturity, are shown below:

	June 30, 2020				December 31, 2019
(dollars in thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Mortgage-backed securities(1)	$	12,592	$	12,995	$	12,577	$	12,661

(1) Expected maturities of mortgage-related securities may differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

As of June 30, 2020 and December 31, 2019, the Corporation’s investment securities held in trading accounts totaled $7.8 million and $8.6 million, respectively, and primarily consist of deferred compensation trust accounts which are invested in listed mutual funds whose diversification is at the discretion of the deferred compensation plan participants and rabbi trust accounts established to fund certain unqualified pension obligations. Investment securities held in trading accounts are reported at fair value, with adjustments in fair value reported through income. Changes in the fair value of investments held in the deferred compensation trust accounts create corresponding changes in the liability to the deferred compensation plan participants.

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Loans and Leases

6 Months Ended

Jun. 30, 2020

Receivables [Abstract]

Loans and Leases

Loans and Leases

The loan and lease portfolio consists of loans and leases originated by the Corporation, as well as loans acquired in prior acquisitions. Certain tables in this footnote are presented with a breakdown between originated and acquired loans and leases.

A. The following table details the amortized cost of loans and leases as of the dates indicated:

Loans and Leases
	June 30, 2020						December 31, 2019
(dollars in thousands)	Originated		Acquired		Total Loans and Leases		Originated		Acquired		Total Loans and Leases
Loans held for sale	$	4,116	$	—	$	4,116	$	4,249	$	—	$	4,249
Real estate loans:
Commercial real estate (CRE) - nonowner-occupied	1,252,173		123,731		1,375,904		1,161,815		175,352		1,337,167
Commercial real estate (CRE) - owner-occupied	499,650		43,038		542,688		479,466		48,141		527,607
Home equity lines of credit	182,035		12,732		194,767		209,239		15,023		224,262
Residential mortgage - 1st liens	596,597		98,673		695,270		604,884		101,806		706,690
Residential mortgage - junior liens	32,083		1,561		33,644		34,903		1,940		36,843
Construction	203,833		8,541		212,374		193,307		8,891		202,198
Total real estate loans	2,766,371		288,276		3,054,647		2,683,614		351,153		3,034,767
Commercial & Industrial	451,228		6,301		457,529		425,322		6,905		432,227
Consumer	43,672		90		43,762		54,913		2,328		57,241
Leases	161,619		4,608		166,227		156,967		8,111		165,078
Total portfolio loans and leases	3,422,890		299,275		3,722,165		3,320,816		368,497		3,689,313
Total loans and leases	$	3,427,006	$	299,275	$	3,726,281	$	3,325,065	$	368,497	$	3,693,562
Loans with fixed rates	$	1,298,849	$	165,053	$	1,463,902	$	1,251,762	$	216,269	$	1,468,031
Loans with adjustable or floating rates	2,128,157		134,222		2,262,379		2,073,303		152,228		2,225,531
Total loans and leases	$	3,427,006	$	299,275	$	3,726,281	$	3,325,065	$	368,497	$	3,693,562
Net deferred loan origination fees (costs) included in the above loan table	$	210	$	—	$	210	$	(193)	$	—	$	(193)

B. The following table details the components of net investment in leases:

Components of Net Investment in Leases
	June 30, 2020						December 31, 2019
(dollars in thousands)	Originated		Acquired		Total Leases		Originated		Acquired		Total Leases
Minimum lease payments receivable	$	178,407	$	4,874	$	183,281	$	174,385	$	8,753	$	183,138
Unearned lease income	(23,182)		(346)		(23,528)		(23,641)		(813)		(24,454)
Initial direct costs and deferred fees	6,394		80		6,474		6,223		171		6,394
Total Leases	$	161,619	$	4,608	$	166,227	$	156,967	$	8,111	$	165,078

C. The following table details the amortized cost of nonperforming loans and leases as of the dates indicated:

Nonperforming Loans and Leases
	June 30, 2020						December 31, 2019
(dollars in thousands)	Originated		Acquired		Total Loans and Leases		Originated		Acquired		Total Loans and Leases
CRE - nonowner-occupied	$	245	$	—	$	245	$	199	$	—	$	199
CRE - owner-occupied	2,937		1,109		4,046		1,523		2,636		4,159
Home equity lines of credit	741		174		915		636		—		636
Residential mortgage - 1st liens	899		13		912		630		1,817		2,447
Residential mortgage - junior liens	72		—		72		83		—		83
Commercial & Industrial	1,642		331		1,973		1,799		381		2,180
Consumer	36		—		36		19		42		61
Leases	190		29		219		747		136		883
Total non-performing loans and leases	$	6,762	$	1,656	$	8,418	$	5,636	$	5,012	$	10,648

D. Age Analysis of Past Due Loans and Leases

The following tables present an aging of all portfolio loans and leases as of the dates indicated:

Payment Status of All Portfolio Loans and Leases
	Accruing Loans and Leases
As of June 30, 2020	30 – 59 Days Past Due		60 – 89 Days Past Due		Over 89 Days Past Due		Total Past Due		Current		Total Accruing Loans and Leases		Nonaccrual Loans and Leases		Total Loans and Leases
(dollars in thousands)
CRE - nonowner-occupied	$	538	$	920	$	—	$	1,458	$	1,374,201	$	1,375,659	$	245	$	1,375,904
CRE - owner-occupied	995		501		—		1,496		537,146		538,642		4,046		542,688
Home equity lines of credit	214		22		—		236		193,616		193,852		915		194,767
Residential mortgage - 1st liens	4,826		153		—		4,979		689,379		694,358		912		695,270
Residential mortgage - junior liens	—		—		—		—		33,572		33,572		72		33,644
Construction	—		—		—		—		212,374		212,374		—		212,374
Commercial & Industrial	12		271		—		283		455,273		455,556		1,973		457,529
Consumer	9		76		—		85		43,641		43,726		36		43,762
Leases	1,337		148		—		1,485		164,523		166,008		219		166,227
Total portfolio loans and leases	$	7,931	$	2,091	$	—	$	10,022	$	3,703,725	$	3,713,747	$	8,418	$	3,722,165

Payment Status of All Portfolio Loans and Leases
	Accruing Loans and Leases
As of December 31, 2019	30 – 59 Days Past Due		60 – 89 Days Past Due		Over 89 Days Past Due		Total Past Due		Current		Total Accruing Loans and Leases		Nonaccrual Loans and Leases		Total Loans and Leases
(dollars in thousands)
CRE - nonowner-occupied	$	184	$	—	$	—	$	184	$	1,336,784	$	1,336,968	$	199	$	1,337,167
CRE - owner-occupied	2,462		—		—		2,462		520,986		523,448		4,159		527,607
Home equity lines of credit	354		365		—		719		222,907		223,626		636		224,262
Residential mortgage - 1st liens	1,639		388		—		2,027		702,216		704,243		2,447		706,690
Residential mortgage - junior liens	116		—		—		116		36,644		36,760		83		36,843
Construction	—		—		—		—		202,198		202,198		—		202,198
Commercial & Industrial	—		—		—		—		430,047		430,047		2,180		432,227
Consumer	98		140		—		238		56,942		57,180		61		57,241
Leases	857		594		—		1,451		162,744		164,195		883		165,078
Total portfolio loans and leases	$	5,710	$	1,487	$	—	$	7,197	$	3,671,468	$	3,678,665	$	10,648	$	3,689,313

The following tables present an aging of originated portfolio loans and leases as of the dates indicated:

Payment Status of Originated Portfolio Loans and Leases
	Accruing Loans and Leases
As of June 30, 2020	30 – 59 Days Past Due		60 – 89 Days Past Due		Over 89 Days Past Due		Total Past Due		Current		Total Accruing Loans and Leases		Nonaccrual Loans and Leases		Total Loans and Leases
(dollars in thousands)
CRE - nonowner-occupied	$	395	$	—	$	—	$	395	$	1,251,533	$	1,251,928	$	245	$	1,252,173
CRE - owner-occupied	995		383		—		1,378		495,335		496,713		2,937		499,650
Home equity lines of credit	112		22		—		134		181,160		181,294		741		182,035
Residential mortgage - 1st liens	1,007		121		—		1,128		594,570		595,698		899		596,597
Residential mortgage - junior liens	—		—		—		—		32,011		32,011		72		32,083
Construction	—		—		—		—		203,833		203,833		—		203,833
Commercial & Industrial	12		271		—		283		449,303		449,586		1,642		451,228
Consumer	9		76		—		85		43,551		43,636		36		43,672
Leases	1,256		147		—		1,403		160,026		161,429		190		161,619
Total portfolio loans and leases	$	3,786	$	1,020	$	—	$	4,806	$	3,411,322	$	3,416,128	$	6,762	$	3,422,890

Payment Status of Originated Portfolio Loans and Leases
	Accruing Loans and Leases
As of December 31, 2019	30 – 59 Days Past Due		60 – 89 Days Past Due		Over 89 Days Past Due		Total Past Due		Current		Total Accruing Loans and Leases		Nonaccrual Loans and Leases		Total Loans and Leases
(dollars in thousands)
CRE - nonowner-occupied	$	184	$	—	$	—	$	184	$	1,161,432	$	1,161,616	$	199	$	1,161,815
CRE - owner-occupied	2,462		—		—		2,462		475,481		477,943		1,523		479,466
Home equity lines of credit	254		365		—		619		207,984		208,603		636		209,239
Residential mortgage - 1st liens	890		102		—		992		603,262		604,254		630		604,884
Residential mortgage - junior liens	116		—		—		116		34,704		34,820		83		34,903
Construction	—		—		—		—		193,307		193,307		—		193,307
Commercial & Industrial	—		—		—		—		423,523		423,523		1,799		425,322
Consumer	18		88		—		106		54,788		54,894		19		54,913
Leases	781		566		—		1,347		154,873		156,220		747		156,967
Total portfolio loans and leases	$	4,705	$	1,121	$	—	$	5,826	$	3,309,354	$	3,315,180	$	5,636	$	3,320,816

The following tables present an aging of acquired portfolio loans and leases as of the dates indicated:

Payment Status of Acquired Portfolio Loans and Leases
	Accruing Loans and Leases
As of June 30, 2020	30 – 59 Days Past Due		60 – 89 Days Past Due		Over 89 Days Past Due		Total Past Due		Current		Total Accruing Loans and Leases		Nonaccrual Loans and Leases		Total Loans and Leases
(dollars in thousands)
CRE - nonowner-occupied	$	143	$	920	$	—	$	1,063	$	122,668	$	123,731	$	—	$	123,731
CRE - owner-occupied	—		118		—		118		41,811		41,929		1,109		43,038
Home equity lines of credit	102		—		—		102		12,456		12,558		174		12,732
Residential mortgage - 1st liens	3,819		32		—		3,851		94,809		98,660		13		98,673
Residential mortgage - junior liens	—		—		—		—		1,561		1,561		—		1,561
Construction	—		—		—		—		8,541		8,541		—		8,541
Commercial & Industrial	—		—		—		—		5,970		5,970		331		6,301
Consumer	—		—		—		—		90		90		—		90
Leases	81		1		—		82		4,497		4,579		29		4,608
Total portfolio loans and leases	$	4,145	$	1,071	$	—	$	5,216	$	292,403	$	297,619	$	1,656	$	299,275

Payment Status of Acquired Portfolio Loans and Leases
	Accruing Loans and Leases
As of December 31, 2019	30 – 59 Days Past Due		60 – 89 Days Past Due		Over 89 Days Past Due		Total Past Due		Current		Total Accruing Loans and Leases		Nonaccrual Loans and Leases		Total Loans and Leases
(dollars in thousands)
CRE - nonowner-occupied	$	—	$	—	$	—	$	—	$	175,352	$	175,352	$	—	$	175,352
CRE - owner-occupied	—		—		—		—		45,505		45,505		2,636		48,141
Home equity lines of credit	100		—		—		100		14,923		15,023		—		15,023
Residential mortgage - 1st liens	749		286		—		1,035		98,954		99,989		1,817		101,806
Residential mortgage - junior liens	—		—		—		—		1,940		1,940		—		1,940
Construction	—		—		—		—		8,891		8,891		—		8,891
Commercial & Industrial	—		—		—		—		6,524		6,524		381		6,905
Consumer	80		52		—		132		2,154		2,286		42		2,328
Leases	76		28		—		104		7,871		7,975		136		8,111
Total portfolio loans and leases	$	1,005	$	366	$	—	$	1,371	$	362,114	$	363,485	$	5,012	$	368,497

E. Allowance for Credit Losses (“ACL”) on Loan and Leases

The ACL on loans and leases represents management’s estimate of all expected credit losses over the expected contractual life of our existing portfolio loans and leases. Determining the appropriateness of the ACL on loans and leases is complex and requires judgment by management about the effect of matters that are inherently uncertain. Subsequent evaluations of the then-existing loan portfolio, in light of the factors then prevailing, may result in significant changes in the ACL on loans and leases in those future periods.

The expense for credit loss recorded through earnings is the amount necessary to maintain the ACL on loans and leases at the amount of expected credit losses inherent within the loans and leases portfolio. The amount of expense and the corresponding level of ACL on loans and leases are based on management’s evaluation of the collectability of the loan and lease portfolio based on historical loss experience, reasonable and supportable forecasts, and other significant qualitative and quantitative factors. The ACL on loans and leases, as reported in our Consolidated Statements of Financial Condition, is adjusted by an expense for credit losses, which is recognized in earnings, and reduced by the charge-off of loan and lease amounts, net of recoveries.

Management employs a disciplined process and methodology to establish the ACL on loans and leases that has two basic components: first, an asset-specific component involving individual loans and leases that do not share risk characteristics with other loans and leases

and the measurement of expected credit losses for such individual loans; and second, a collective (pooled) component for estimated expected credit losses for pools of loans and leases that share similar risk characteristics.

Based upon this methodology, management establishes an asset-specific ACL on loans and leases that do not share risk characteristics with other loans and leases based on the amount of expected credit losses calculated on those loans and leases and charges off amounts determined to be uncollectible. Factors we consider in measuring the extent of expected credit loss include payment status, collateral value, borrower financial condition, guarantor support and the probability of collecting scheduled principal and interest payments when due.

When a loan or lease does not share risk characteristics with other loans or leases, management measures expected credit loss as the difference between the amortized cost basis in the loan and the present value of expected future cash flows discounted at the loan’s effective interest rate except that, for collateral dependent loans, credit loss is measured as the difference between the amortized cost basis in the loan and the fair value of the underlying collateral. The fair value of the collateral is adjusted for the estimated cost to sell if repayment or satisfaction of a loan is dependent on the sale (rather than only on the operation) of the collateral. If the calculated expected credit loss is determined to be permanent, fixed or nonrecoverable, the credit loss portion of the loan will be charged off against the ACL on loans and leases. Loans and leases designated as having significantly increased credit risk are generally placed on nonaccrual and remain in that status until all principal and interest payments are current and the prospects for future payments in accordance with the loan agreement are reasonably assured, at which point the loan is returned to accrual status.

In estimating the component of the ACL on loans and leases that share common risk characteristics, loans and leases are segregated into portfolio segments based on federal call report codes which classify loans and leases based on the primary collateral supporting the loan and lease. Methods utilized by management to estimate expected credit losses include a DCF methodology that discounts instrument-level contractual cash flows, adjusted for prepayments and curtailments, incorporating loss expectations, and a WARM methodology which contemplates expected losses at a pool-level, utilizing historic loss information.

Under both methodologies, management estimates the ACL on loans and leases using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. After the end of the reasonable and supportable forecast period, the loss rates revert to the long-term mean loss rate, or in the case of an input-driven predictive method, the long-term mean of the input, using a reversion period where applicable. Historical credit loss experience, including examination of loss experience at representative peer institutions when the Corporation’s first-party loss history does not result in estimations that are meaningful to users of the Corporation’s Consolidated Financial Statements, provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are considered for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as for changes in environmental conditions, such as changes in unemployment rates, property values, or other relevant factors.

The DCF methodology uses inputs of current and forecasted macroeconomic indicators to predict future loss rates. The current macroeconomic indicator utilized by the bank is the Pennsylvania unemployment rate. In building the CECL model utilized in the DCF methodology, a correlation between this indicator and historic loss levels was developed, enabling a prediction of future loss rates related to future Pennsylvania unemployment rates. The portfolio segments utilizing the DCF methodology as of June 30, 2020 included: CRE - owner-occupied and nonowner-occupied loans, home equity lines of credit, residential mortgages (first and junior liens), construction loans and consumer loans.

The WARM methodology uses combined historic loss rates for the Bank and peer institutions, if necessary, gathered from Call Report filings. The selected period for which historic loss rates are used is dependent on management's evaluation of current conditions and expectations of future loss conditions. The portfolio segments utilizing the WARM methodology as of June 30, 2020 included commercial and industrial loans and leases.

For the three months ended June 30, 2020, there was a significant change in the economic outlook impacting the ACL on loans and leases. Our CECL model included a sharp deterioration in the Pennsylvania unemployment rate, to levels observed during the last recessionary period, projected to be sustained in the third and fourth quarters of 2020, with a reversion to a long-term 15-year average.

In addition to these assumptions, management applied additional qualitative factors related to the loss mitigation expected to be provided by the various governmental aid programs, such as increased unemployment benefits, stimulus payments, and the SBA's Paycheck Protection Program, as well as the Bank's loan payment deferral programs being offered to borrowers which provide a three- or six-month payment deferral to borrowers affected by the COVID-19 pandemic. These qualitative factors were applied to all segments of the portfolio except the construction segment and the retail and hospitality sectors of the nonowner-occupied CRE segment, due to the significant expected impact on these specific segments and sectors from the economic shutdown, such as government mandated stay at home orders and closure of non-essential businesses.

The following tables present the activity in the ACL on loans and leases, by portfolio segment, for the three and six months ended June 30, 2020 and 2019:

Roll-Forward of ACL on Loans and Leases

(dollars in thousands)	CRE - nonowner-occupied		CRE - owner-occupied		Home equity lines of credit		Residential mortgage - 1st liens		Residential mortgage - junior liens		Construction		Commercial & Industrial		Consumer		Leases		Total
Balance, March 31, 2020	$	13,329	$	4,192	$	2,748	$	8,316	$	517	$	6,984	$	8,734	$	341	$	8,909	$	54,070
Loans and leases charged-off	—		(1,234)		—		(556)		—		—		(522)		(296)		(1,443)		(4,051)
Recoveries collected	4		—		4		136		—		1		22		57		428		652
PCL on loans and leases	1,998		2,125		(1,125)		302		4		(924)		(246)		338		1,831		4,303
Balance, June 30, 2020	$	15,331	$	5,083	$	1,627	$	8,198	$	521	$	6,061	$	7,988	$	440	$	9,725	$	54,974

Roll-Forward of ACL on Loans and Leases

(dollars in thousands)	CRE - nonowner-occupied		CRE - owner-occupied		Home equity lines of credit		Residential mortgage - 1st liens		Residential mortgage - junior liens		Construction		Commercial & Industrial		Consumer		Leases		Total
Balance, December 31, 2019 Prior to Adoption of ASC 326	$	7,960	$	2,825	$	1,114	$	2,501	$	338	$	1,230	$	3,835	$	438	$	2,361	$	22,602
Impact of Adopting ASC 326	(467)		16		(46)		2,408		79		(359)		(159)		140		1,594		3,206
Loans and leases charged-off	—		(1,233)		(114)		(1,284)		—		—		(1,149)		(590)		(4,069)		(8,439)
Recoveries collected	6		—		4		137		—		2		37		90		692		968
PCL on loans and leases	7,832		3,475		669		4,436		104		5,188		5,424		362		9,147		36,637
Balance, June 30, 2020	$	15,331	$	5,083	$	1,627	$	8,198	$	521	$	6,061	$	7,988	$	440	$	9,725	$	54,974

Roll-Forward of ACL on Loans and Leases

(dollars in thousands)	CRE - nonowner-occupied		CRE - owner-occupied		Home equity lines of credit		Residential mortgage - 1st liens		Residential mortgage - junior liens		Construction		Commercial & Industrial		Consumer		Leases		Total
Balance, March 31, 2019	$	6,308	$	2,740	$	1,222	$	2,634	$	350	$	1,372	$	3,507	$	439	$	2,044	$	20,616
Loans and leases charged-off	—		—		(211)		(341)		(56)		—		(20)		(127)		(624)		(1,379)
Recoveries collected	5		—		83		2		4		1		37		7		179		318
PCL on loans and leases	520		(80)		158		349		45		(93)		58		20		650		1,627
Balance, June 30, 2019	$	6,833	$	2,660	$	1,252	$	2,644	$	343	$	1,280	$	3,582	$	339	$	2,249	$	21,182

Roll-Forward of ACL on Loans and Leases
(dollars in thousands)	CRE - nonowner-occupied		CRE - owner-occupied		Home equity lines of credit		Residential mortgage - 1st liens		Residential mortgage - junior liens		Construction		Commercial & Industrial		Consumer		Leases		Total
Balance, December 31, 2018	$	5,856	$	2,454	$	1,140	$	2,561	$	364	$	1,715	$	3,166	$	303	$	1,867	$	19,426
Loans and leases charged-off	(1,515)		—		(313)		(682)		(56)		—		(217)		(247)		(1,192)		(4,222)
Recoveries collected	7		—		84		15		4		2		45		25		433		615
PCL on loans and leases	2,485		206		341		750		31		(437)		588		258		1,141		5,363
Balance, June 30, 2019	$	6,833	$	2,660	$	1,252	$	2,644	$	343	$	1,280	$	3,582	$	339	$	2,249	$	21,182

As part of the process of determining the ACL for the different segments of the loan and lease portfolio, management considers certain credit quality indicators. Periodic reviews of loans are conducted by both in-house staff as well as external loan reviewers. The result of these reviews is reflected in the risk grade assigned to each loan. These internally assigned grades are as follows:

•Pass – Loans considered satisfactory with no indications of deterioration.

•Pass-Watch – Loans that are performing, but which may have a potential deficiency which the borrower appears to be managing or a possible deficiency in the future.

•Special mention – Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.

•Substandard – Loans classified as substandard are inadequately protected by the current net worth and payment capacity of the obligor or of the collateral pledged, if any. Substandard loans have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

•Doubtful – Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

The following table details the amortized cost of portfolio loans and leases, by year of origination (for term loans) and by risk grade within each portfolio segment as of June 30, 2020:

		Term Loans												Revolving Loans
		Amortized Cost Basis by Origination Year(1)												Amortized Cost Basis
(dollars in thousands)	Risk Rating	2020		2019		2018		2017		2016		2015 and Prior		Revolving Lines of Credit		Revolving Lines of Credit Converted to Term Loans		Total
CRE - nonowner-occupied	Pass	$	171,485	$	454,690	$	192,252	$	124,010	$	120,715	$	140,138	$	32,668	$	—	$	1,235,958
	Pass-Watch	332		676		2,963		—		1,686		2,455		—		—		8,112
	Special Mention	17,817		—		10,931		—		—		—		—		—		28,748
	Substandard	2,443		33,386		11,868		4,780		43,235		7,374		—		—		103,086
	Total	$	192,077	$	488,752	$	218,014	$	128,790	$	165,636	$	149,967	$	32,668	$	—	$	1,375,904
CRE - owner-occupied	Pass	$	73,670	$	111,679	$	109,629	$	87,028	$	51,683	$	50,568	$	13,430	$	—	$	497,687
	Pass-Watch	4,914		1,786		—		—		2,401		1,747		441		—		11,289
	Special Mention	3,367		434		3,698		—		—		879		50		—		8,428
	Substandard	3,153		6,746		7,597		860		5,907		858		163		—		25,284
	Total	$	85,104	$	120,645	$	120,924	$	87,888	$	59,991	$	54,052	$	14,084	$	—	$	542,688
Home equity lines of credit	Pass	$	98	$	887	$	332	$	123	$	276	$	2,777	$	184,201	$	4,327	$	193,021
	Special Mention	—		—		—		—		—		—		—		—		—
	Substandard	831		251		195		58		—		352		59		—		1,746
	Total	$	929	$	1,138	$	527	$	181	$	276	$	3,129	$	184,260	$	4,327	$	194,767
Residential mortgage - 1st liens	Pass	$	62,318	$	135,324	$	91,917	$	87,672	$	77,890	$	228,862	$	1,135	$	—	$	685,118
	Pass-Watch	505		—		—		—		—		265		—		—		770
	Special Mention	—		—		—		—		—		7,505		—		—		7,505
	Substandard	—		86		689		26		977		99		—		—		1,877
	Total	$	62,823	$	135,410	$	92,606	$	87,698	$	78,867	$	236,731	$	1,135	$	—	$	695,270
Residential mortgage - junior liens	Pass	$	1,825	$	5,056	$	9,251	$	4,371	$	3,412	$	9,425	$	177	$	—	$	33,517
	Substandard	55		—		—		—		36		36		—		—		127
	Total	$	1,880	$	5,056	$	9,251	$	4,371	$	3,448	$	9,461	$	177	$	—	$	33,644
Construction	Pass	$	85,546	$	66,421	$	25,739	$	10,134	$	—	$	5,079	$	13,033	$	—	$	205,952
	Pass-Watch	—		—		—		—		—		—		—		—		—
	Substandard	6,422		—		—		—		—		—		—		—		6,422
	Total	$	91,968	$	66,421	$	25,739	$	10,134	$	—	$	5,079	$	13,033	$	—	$	212,374
Commercial & Industrial	Pass	$	87,861	$	70,042	$	70,867	$	15,637	$	30,559	$	23,068	$	104,645	$	—	$	402,679
	Pass-Watch	10,564		7,656		205		3,492		305		916		6,486		—		29,624
	Special Mention	532		—		4,685		212		—		1,127		3,934		—		10,490
	Substandard	1,774		1,962		3,298		1,531		1,307		3,119		1,745		—		14,736
	Total	$	100,731	$	79,660	$	79,055	$	20,872	$	32,171	$	28,230	$	116,810	$	—	$	457,529
Consumer	Pass	$	1,154	$	4,817	$	2,554	$	379	$	32	$	235	$	33,401	$	—	$	42,572
	Substandard	1,154		18		6		12		—		—		—		—		1,190
	Total	$	2,308	$	4,835	$	2,560	$	391	$	32	$	235	$	33,401	$	—	$	43,762
Leases	Pass	$	34,974	$	69,578	$	45,476	$	12,391	$	3,163	$	426	$	—	$	—	$	166,008
	Substandard	—		69		66		68		16		—		—		—		219
	Total	$	34,974	$	69,647	$	45,542	$	12,459	$	3,179	$	426	$	—	$	—	$	166,227
Total portfolio loans and leases		$	572,794	$	971,564	$	594,218	$	352,784	$	343,600	$	487,310	$	395,568	$	4,327	$	3,722,165

(1) Year originated or renewed, whichever is more recent.

The following tables present the amortized cost basis of loans and leases on nonaccrual status and loans and leases past due over 89 days still accruing as of the dates indicated:

As of June 30, 2020
(dollars in thousands)	Nonaccrual with No ACL		Nonaccrual with ACL		Loans Past Due Over 89 Days Still Accruing
CRE - nonowner-occupied	$	245	$	—	$	—
CRE - owner-occupied	4,046		—		—
Home equity lines of credit	915		—		—
Residential mortgage - 1st liens	912		—		—
Residential mortgage - junior liens	72		—		—
Construction	—		—		—
Commercial & Industrial	1,973		—		—
Consumer	—		36		—
Leases	—		219		—
Total non-performing loans and leases	$	8,163	$	255	$	—

As of December 31, 2019
(dollars in thousands)	Nonaccrual with No ACL		Nonaccrual with ACL		Loans Past Due Over 89 Days Still Accruing
CRE - nonowner-occupied	$	199	$	—	$	—
CRE - owner-occupied	4,159		—		—
Home equity lines of credit	636		—		—
Residential mortgage - 1st liens	2,447		—		—
Residential mortgage - junior liens	83		—		—
Construction	—		—		—
Commercial & Industrial	2,180		—		—
Consumer	42		19		—
Leases	—		883		—
Total non-performing loans and leases	$	9,746	$	902	$	—

For the three months ended June 30, 2020, $78 thousand of interest income was recognized on nonaccrual loans and leases.

Collateral-dependent loans and leases for which the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the sale of the collateral are, in general, individually evaluated for credit losses. Identified shortfalls between the amortized cost of the individually evaluated loan or lease and the value, less selling costs, of the underlying collateral are charged against the ACL. In certain cases, when the loan or lease is serviced by a third-party, and management is unable to process a timely charge-down of the loan or lease, it will assess a specific ACL to the individual loan or lease. This ACL represents the shortfall between the amortized cost and realizable value of the collateral.

The following tables present the amortized cost basis of collateral-dependent loans and leases, indicating the type of collateral and the ACL determined through individual evaluation for credit loss, as of the dates indicated:

As of June 30, 2020
(dollars in thousands)	Real Estate Collateral		Non-Real Estate Collateral		Individually Evaluated ACL
CRE - nonowner-occupied	$	245	$	—	$	—
CRE - owner-occupied	4,046		—		—
Home equity lines of credit	915		—		—
Residential mortgage - 1st liens	912		—		—
Residential mortgage - junior liens	72		—		—
Construction	—		—		—
Commercial & Industrial	—		1,973		—
Consumer	—		36		36
Leases	—		219		165
Total collateral-dependent loans and leases	$	6,190	$	2,228	$	201

As of December 31, 2019
(dollars in thousands)	Real Estate Collateral		Non-Real Estate Collateral		Individually Evaluated ACL
CRE - nonowner-occupied	$	199	$	—	$	—
CRE - owner-occupied	4,159		—		—
Home equity lines of credit	636		—		—
Residential mortgage - 1st liens	2,447		—		—
Residential mortgage - junior liens	83		—		—
Construction	—		—		—
Commercial & Industrial	—		2,180		—
Consumer	—		61		19
Leases	—		883		60
Total collateral-dependent loans and leases	$	7,524	$	3,124	$	79

F. Troubled Debt Restructurings (“TDRs”)

The restructuring of a loan is considered a “troubled debt restructuring” if both of the following conditions are met: (i) the borrower is experiencing financial difficulties, and (ii) the creditor has granted a concession. The most common concessions granted include one or more modifications to the terms of the debt, such as (a) a reduction in the interest rate for the remaining life of the debt, (b) an extension of the maturity date at an interest rate lower than the current market rate for new debt with similar risk, (c) a temporary period of interest-only payments, (d) a reduction in the contractual payment amount for either a short period or remaining term of the loan, and (e) for leases, a reduced lease payment. A less common concession granted is the forgiveness of a portion of the principal.

The determination of whether a borrower is experiencing financial difficulties takes into account not only the current financial condition of the borrower, but also the potential financial condition of the borrower, were a concession not granted. Similarly, the determination of whether a concession has been granted is very subjective in nature. For example, simply extending the term of a loan at its original interest rate or even at a higher interest rate could be interpreted as a concession unless the borrower could readily obtain similar credit terms from a different lender.

The following table presents the balance of TDRs as of the indicated dates:

Troubled Debt Restructurings(1)
(dollars in thousands)	June 30, 2020		December 31, 2019
TDRs included in nonperforming loans and leases	$	1,792	$	3,018
TDRs in compliance with modified terms	10,013		5,071
Total TDRs	$	11,805	$	8,089

(1) The Corporation began entering into loan modifications with borrowers in response to the COVID-19 pandemic, which have not been  classified as TDRs, and therefore are not included in the above table. For more information on the criteria for classifying loans as TDRs, see Note 1 – Basis of Presentation, Principles of Consolidation, and Significant Accounting Policies to the Unaudited Consolidated Financial Statements.

The following tables present information regarding loan and lease modifications categorized as TDRs for the three and six months ended June 30, 2020: 

Troubled Debt Restructurings(1)
	For the Three Months Ended June 30, 2020
(dollars in thousands)	Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
CRE - nonowner-occupied	2	$	1,818	$	1,818
Residential mortgage - 1st liens	1	200		200
Construction	4	3,419		3,419
Leases	6	141		141
Total	13	$	5,578	$	5,578

Troubled Debt Restructurings(1)
	For the Six Months Ended June 30, 2020
(dollars in thousands)	Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
CRE - nonowner-occupied	2	$	1,818	$	1,818
Residential mortgage - 1st liens	1	200		200
Construction	4	3,419		3,419
Leases	6	141		141
Total	13	$	5,578	$	5,578

(1) The Corporation began entering into loan modifications with borrowers in response to the COVID-19 pandemic, which have not been  classified as TDRs, and therefore are not included in the above table. For more information on the criteria for classifying loans as TDRs, see Note 1 – Basis of Presentation, Principles of Consolidation, and Significant Accounting Policies to the Unaudited Consolidated Financial Statements.

The following table presents information regarding the types of loan and lease modifications made for the three and six months ended June 30, 2020:

Troubled Debt Restructurings(1)
	Number of Contracts for the Three Months Ended June 30, 2020
	Loan Term Extension	Interest Rate Change and Term Extension	Interest Rate Change and/or Interest-Only Period	Contractual Payment Reduction (Leases only)	Temporary Payment Deferral
CRE - nonowner-occupied	—	—	—	—	2
Residential mortgage - 1st liens	1	—	—	—	—
Construction	—	—	—	—	4
Leases	—	—	—	6	—
Total	1	—	—	6	6

Troubled Debt Restructurings(1)
	Number of Contracts for the Six Months Ended June 30, 2020
	Loan Term Extension	Interest Rate Change and Term Extension	Interest Rate Change and/or Interest-Only Period	Contractual Payment Reduction (Leases only)	Temporary Payment Deferral
CRE - nonowner-occupied	—	—	—	—	2
Residential mortgage - 1st liens	1	—	—	—	—
Construction	—	—	—	—	4
Leases	—	—	—	6	—
Total	1	—	—	6	6

(1) The Corporation began entering into loan modifications with borrowers in response to the COVID-19 pandemic, which have not been  classified as TDRs, and therefore are not included in the above table. For more information on the criteria for classifying loans as TDRs, see Note 1 – Basis of Presentation, Principles of Consolidation, and Significant Accounting Policies to the Unaudited Consolidated Financial Statements.

For the six months ended June 30, 2020, two residential mortgage loans, in the aggregate amount of $228 thousand, and one commercial and industrial loan in the amount of $477 thousand that were modified as a TDR during the past 12 months defaulted and were charged off.

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Mortgage Servicing Rights

6 Months Ended

Jun. 30, 2020

Transfers and Servicing [Abstract]

Mortgage Servicing Rights

Mortgage Servicing Rights

The following table summarizes the Corporation’s activity related to mortgage servicing rights (“MSRs”) for the three and six months ended June 30, 2020 and 2019:

	Three Months Ended June 30,
(dollars in thousands)	2020		2019
Balance, beginning of period	$	4,115	$	4,910
Additions	—		—
Amortization	(453)		(156)
Impairment	(222)		(10)
Balance, end of period	$	3,440	$	4,744
Fair value	$	3,440	$	5,175
Residential mortgage loans serviced for others	$	445,233	$	545,743

	Six Months Ended June 30,
(dollars in thousands)	2020		2019
Balance, beginning of period	$	4,450	$	5,047
Additions	—		—
Amortization	(557)		(276)
Impairment	(453)		(27)
Balance, end of period	$	3,440	$	4,744

As of June 30, 2020, and December 31, 2019, key economic assumptions and the sensitivity of the current fair value of MSRs to immediate 10% and 20% adverse changes in those assumptions are as follows:

(dollars in thousands)	June 30, 2020			December 31, 2019
Fair value amount of MSRs	$	3,440		$	4,838
Weighted average life (in years)	4.7			6.0
Prepayment speeds (constant prepayment rate)(1)	14.4		%	10.5		%
Impact on fair value:
10% adverse change	$	(151)		$	(149)
20% adverse change	(292)			(297)
Discount rate	9.56		%	9.55		%
Impact on fair value:
10% adverse change	$	(88)		$	(166)
20% adverse change	(172)			(321)

(1) Represents the weighted average prepayment rate for the life of the MSR asset.

At June 30, 2020 and December 31, 2019, the fair value of the MSRs was $3.4 million and $4.8 million, respectively. The fair value of the MSRs for these dates was determined using values obtained from a third party which utilizes a valuation model which calculates the present value of estimated future servicing income. The model incorporates assumptions that market participants use in estimating future net servicing income, including estimates of prepayment speeds and discount rates. Mortgage loan prepayment speed is the annual rate at which borrowers are forecasted to repay their mortgage loan principal and is based on historical experience. The discount rate is used to determine the present value of future net servicing income. Another key assumption in the model is the required rate of return the market would expect for an asset with similar risk. These assumptions can, and generally will, change quarterly valuations as market conditions and interest rates change. Management reviews, annually, the process utilized by its independent third-party valuation experts.

These assumptions and sensitivities are hypothetical and should be used with caution. As the figures indicate, changes in fair value based on a 10% variation in assumptions generally cannot be extrapolated because the relationship of the change in assumptions to the change in fair value may not be linear. Also, the effect of a variation in a particular assumption on the fair value of the MSRs is calculated without changing any other assumption. In reality, changes in one factor may result in changes in another, which could magnify or counteract the sensitivities.

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Goodwill and Intangibles Assets

6 Months Ended

Jun. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangibles Assets

Goodwill and Intangible Assets

The following table presents activity in the Corporation's goodwill by its reporting units and finite-lived and indefinite-lived intangible assets, other than MSRs, for the six months ended June 30, 2020:

(dollars in thousands)	Balance December 31, 2019		Additions		Amortization		Balance June 30, 2020		Amortization Period
Goodwill – Wealth	$	20,412	$	—	$	—	$	20,412	Indefinite
Goodwill – Banking	156,991		—		—		156,991		Indefinite
Goodwill – Insurance	6,609		—		—		6,609		Indefinite
Total Goodwill	184,012		—		—		184,012
Core deposit intangible	4,598		—		(584)		4,014		10 years
Customer relationships	11,820		—		(906)		10,914		5 to 20 years
Non-compete agreements	911		—		(94)		817		5 to 10 years
Trade name	1,651		—		(244)		1,407		3 to 5 years
Domain name	151		—		—		151		Indefinite
Total Intangible Assets	19,131		—		(1,828)		17,303
Total Goodwill and Intangible Assets	$	203,143	$	—	$	(1,828)	$	201,315

Management conducted its annual impairment tests for goodwill and indefinite-lived intangible assets as of October 31, 2019 using generally accepted valuation methods. Management determined that no impairment of goodwill or indefinite-lived intangible assets was identified as a result of the annual impairment analyses. Future impairment testing will be conducted each October 31, unless a triggering event occurs in the interim that would suggest possible impairment, in which case it would be tested as of the date of the triggering event. For the five months ended June 30, 2020, management determined there were no events that would necessitate impairment testing of goodwill or indefinite-lived intangible assets. Management continues to monitor the economic environment as impacted by the COVID-19 pandemic in the markets we serve and resulting effect on the Corporation's long-term forecast.

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Deposits

6 Months Ended

Jun. 30, 2020

Deposits [Abstract]

Deposits

Deposits

The following table details the components of deposits:

(dollars in thousands)	June 30, 2020		December 31, 2019
Interest-bearing demand	$	910,441	$	944,915
Money market	1,239,523		1,106,478
Savings	249,636		220,450
Retail time deposits	400,186		405,123
Wholesale non-maturity deposits	146,463		177,865
Wholesale time deposits	79,903		89,241
Total interest-bearing deposits	3,026,152		2,944,072
Noninterest-bearing deposits	1,217,496		898,173
Total deposits	$	4,243,648	$	3,842,245

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Short-Term Borrowings and Long-Term FHLB Advances

6 Months Ended

Jun. 30, 2020

Long-term Federal Home Loan Bank Advances [Abstract]

Short-Term Borrowings and Long-Term FHLB Advances

Short-Term Borrowings and Long-Term FHLB Advances

A. Short-term borrowings

The Corporation’s short-term borrowings (original maturity of one year or less), which consist of funds obtained from overnight repurchase agreements with commercial customers, FHLB advances with original maturities of one year or less and overnight fed funds, are detailed below.

A summary of short-term borrowings is as follows:

(dollars in thousands)	June 30, 2020		December 31, 2019
Repurchase agreements(1) – commercial customers	$	28,891	$	10,819
Short-term FHLB advances	—		482,400
Total short-term borrowings	$	28,891	$	493,219

(1) Overnight repurchase agreements with no expiration date

The following table sets forth information concerning short-term borrowings:

	Three Months Ended June 30,						Six Months Ended June 30,
(dollars in thousands)	2020			2019			2020			2019
Balance at period-end	$	28,891		$	207,828		$	28,891		$	207,828
Maximum amount outstanding at any month end	174,431			207,828			174,431			207,828
Average balance outstanding during the period	136,816			68,529			138,700			112,844
Weighted-average interest rate:
As of the period-end	0.10		%	2.33		%	0.10		%	2.33		%
Paid during the period	0.68		%	2.09		%	0.99		%	2.32		%

Average balances outstanding during the year represent daily average balances and average interest rates represent interest expense divided by the related average balance.

B. Long-term FHLB Advances

As of June 30, 2020 and December 31, 2019, the Corporation had $44.8 million and $52.3 million, respectively, of long-term FHLB advances (original maturities exceeding one year).

The following table presents the remaining periods until maturity of long-term FHLB advances:

(dollars in thousands)	June 30, 2020		December 31, 2019
Within one year	$	4,861	$	12,363
Over one year through five years	39,976		39,906
Total	$	44,837	$	52,269

The following table presents rate and maturity information on FHLB advances and other borrowings: 

	Maturity Range(1)		Weighted Average Rate(1)		Coupon Rate(1)				Balance at
Description	From	To			From		To		June 30, 2020		December 31, 2019
Bullet maturity – fixed rate	12/9/2020	11/12/2021	1.73	%	1.40	%	2.13	%	$	44,837	$	52,269

(1) Maturity range, weighted average rate and coupon rate range refers to June 30, 2020 balances.

C. Other Borrowings Information

In connection with its FHLB borrowings, the Corporation is required to hold the capital stock of the FHLB. The amount of capital stock held was $4.5 million at June 30, 2020, and $23.7 million at December 31, 2019. The carrying amount of the FHLB stock approximates its redemption value.

The level of required investment in FHLB stock is based on the balance of outstanding borrowings the Corporation has from the FHLB. Although FHLB stock is a financial instrument that represents an equity interest in the FHLB, it does not have a readily determinable fair value. FHLB stock is generally viewed as a long-term investment. Accordingly, when evaluating FHLB stock for impairment, its value should be determined based on the ultimate recoverability of the par value rather than by recognizing temporary declines in value.

The Corporation had a maximum borrowing capacity with the FHLB of $1.83 billion as of June 30, 2020 of which the unused capacity was $1.78 billion. In addition, there were $74.0 million in the overnight federal funds line available and $166.8 million of FRB discount window capacity.

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Subordinated Notes

6 Months Ended

Jun. 30, 2020

Subordinated Debt [Abstract]

Subordinated Notes

Subordinated Notes

On December 13, 2017, BMBC completed the issuance of $70.0 million in aggregate principal amount of fixed-to-floating rate subordinated notes due 2027 (the “2027 Notes”) in an underwritten public offering. On August 6, 2015, BMBC completed the issuance of $30.0 million in aggregate principal amount of fixed-to-floating rate subordinated notes due 2025 (the “2025 Notes”) in a private placement transaction to institutional accredited investors. The net proceeds of both offerings increased Tier II regulatory capital at BMBC.

The following tables detail the subordinated notes, including debt issuance costs, as of June 30, 2020, and December 31, 2019:

	June 30, 2020				December 31, 2019
(dollars in thousands)	Balance		Rate(1)(2)		Balance		Rate(1)(2)
Subordinated notes – due 2027	$	69,071	4.25	%	$	69,009	4.25	%
Subordinated notes – due 2025	29,723		4.75		29,696		4.75
Total subordinated notes	$	98,794			$	98,705

(1) The 2027 Notes bear interest at an annual fixed rate of 4.25% from the date of issuance until and including December 14, 2022, and will thereafter bear interest at a variable rate that will reset quarterly to a level equal to the then-current three-month LIBOR rate plus 2.050% until December 15, 2027, or any early redemption date.

(2) The 2025 Notes bear interest at an annual fixed rate of 4.75% from the date of issuance until and including August 14, 2020, and will thereafter bear interest at a variable rate that will reset quarterly to a level equal to the then-current three-month LIBOR rate plus 3.068% until August 15, 2025, or any early redemption date.

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Junior Subordinated Debentures

6 Months Ended

Jun. 30, 2020

Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust [Abstract]

Junior Subordinated Debentures

Junior Subordinated Debentures

In connection with the RBPI Merger, BMBC acquired Royal Bancshares Capital Trust I (“Trust I”) and Royal Bancshares Capital Trust II (“Trust II”) (collectively, the “Trusts”), which were utilized for the sole purpose of issuing and selling capital securities representing preferred beneficial interests. Although BMBC owns an aggregate of $774 thousand of the common securities of Trust I and Trust II, the Trusts are not consolidated into the Corporation’s Consolidated Financial Statements as the Corporation is not deemed to be the primary beneficiary of these entities. In connection with the issuance and sale of the capital securities, RBPI issued, and the Corporation assumed as a result of the RBPI Merger, junior subordinated debentures to the Trusts of $10.7 million each, totaling $21.4 million representing the Corporation’s maximum exposure to loss. The junior subordinated debentures incur interest at a coupon rate of 2.46% as of June 30, 2020. The rate resets quarterly based on 3-month LIBOR plus 2.15%.

Each of Trust I and Trust II issued an aggregate principal amount of $12.5 million of capital securities initially bearing fixed and/or fixed/floating interest rates corresponding to the debt securities held by each trust to an unaffiliated investment vehicle and an aggregate principal amount of $387 thousand of common securities bearing fixed and/or fixed/floating interest rates corresponding to the debt securities held by each trust to the Corporation. As a result of the RBPI Merger, the Corporation has

fully and unconditionally guaranteed all of the obligations of the Trusts, including any distributions and payments on liquidation or redemption of the capital securities.

The rights of holders of common securities of the Trusts are subordinate to the rights of the holders of capital securities only in the event of a default; otherwise, the common securities’ economic and voting rights are pari passu with the capital securities. The capital and common securities of the Trusts are subject to mandatory redemption upon the maturity or call of the junior subordinated debentures held by each. Unless earlier dissolved, the Trusts will dissolve on December 15, 2034. The junior subordinated debentures are the sole assets of Trusts, mature on December 15, 2034, currently and may be called at par by the Corporation. The Corporation records its investments in the Trusts’ common securities of $387 thousand each as investments in unconsolidated entities and records dividend income upon declaration by Trust I and Trust II.

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Operating Leases

6 Months Ended

Jun. 30, 2020

Leases [Abstract]

Operating Leases

Operating Leases

The Corporation’s operating leases consist of various retail branch locations and corporate offices. As of June 30, 2020, the Corporation’s leases have remaining lease terms ranging from three months to 22 years including extension options that the Corporation is reasonably certain will be exercised.

The Corporation’s leases include fixed rental payments, and certain of our leases also include variable rental payments where lease payments may increase at pre-determined dates based on the change in the consumer price index. The Corporation’s lease agreements include gross leases as well as leases in which we make separate payments to the lessor for items such as the property taxes assessed on the property or a portion of the common area maintenance associated with the property. We have elected the practical expedient not to separate lease and non-lease components for all of our building leases. The Corporation also elected to not recognize right-of-use assets (“ROU assets”) and lease liabilities for short-term leases, which consist of certain leases of the Corporation’s limited-hour retirement community offices.

As of June 30, 2020 the Corporation’s ROU assets and related lease liabilities were $39.3 million and $43.7 million, respectively.

The components of lease expense were as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
(dollars in thousands)
Operating lease expense	$	1,198	$	1,333	$	2,396	$	2,663
Short term lease expense	14		14		29		29
Variable lease expense	308		392		665		810
Sublease income	(8)		(7)		(17)		(16)
Total lease expense	$	1,512	$	1,732	$	3,073	$	3,486

Supplemental cash flow information related to leases was as follows:

	Six Months Ended June 30,
	2020		2019
(dollars in thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	2,348	$	2,561
ROU assets obtained in exchange for lease liabilities	—		44,944

Maturities of operating lease liabilities under FASB ASC 842 “Leases” as of June 30, 2020 are as follows:

	June 30, 2020
(dollars in thousands)
2020	$	2,357
2021	4,479
2022	4,200
2023	4,047
2024	4,076
2025 and thereafter	37,308
Total lease payments	56,467
Less: imputed interest	12,774
Present value of operating lease liabilities	$	43,693

As of June 30, 2020, the weighted-average remaining lease term, including extension options that the Corporation is reasonably certain will be exercised, for all operating leases is 13.94 years.

Because we generally do not have access to the rate implicit in the lease, we utilize our incremental borrowing rate as the discount rate. The weighted average discount rate associated with operating leases as of June 30, 2020 is 3.58%.

As of June 30, 2020, the Corporation had not entered into any material leases that have not yet commenced.

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Derivative Instruments and Hedging Activities

6 Months Ended

Jun. 30, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities

Derivative Instruments and Hedging Activities

Derivative financial instruments involve, to varying degrees, interest rate, market and credit risk. Management manages these risks as part of its asset and liability management process and through credit policies and procedures. Management seeks to minimize counterparty credit risk by establishing credit limits and collateral agreements and utilizes certain derivative financial instruments to enhance its ability to manage interest rate risk that exists as part of its ongoing business operations. The derivative transactions entered into by the Corporation are an economic hedge of a derivative offerings to Bank customers. The Corporation does not use derivative financial instruments for trading purposes.

Customer Derivatives – Interest Rate Swaps. The Corporation enters into interest rate swaps with commercial loan customers and correspondent banks wishing to manage interest rate risk. The Corporation then enters into corresponding swap agreements with swap dealer counterparties to economically hedge the exposure arising from these contracts. The interest rate swaps with both the customers and third parties are not designated as hedges under FASB ASC 815 and are marked to market through earnings. As the interest rate swaps are structured to offset each other, changes to the underlying benchmark interest rates considered in the valuation of these instruments do not result in an impact to earnings; however, there may be fair value adjustments related to credit quality variations between counterparties, which may impact earnings as required by FASB ASC 820. As of June 30, 2020, there were no fair value adjustments related to credit quality.

Foreign Exchange Forward Contracts. The Corporation enters into foreign exchange forward contracts (“FX forwards”) with customers to exchange one currency for another on an agreed date in the future at an agreed exchange rate. The Corporation then enters into corresponding FX forwards with swap dealer counterparties to economically hedge its exposure on the exchange rate component of the customer agreements. The FX forwards with both the customers and third parties are not designated as hedges under FASB ASC 815 and are marked to market through earnings. Exposure to gains and losses on these contracts increase or decrease over their respective lives as currency exchange and interest rates fluctuate. As the FX forwards are structured to offset each other, changes to the underlying term structure of currency exchange rates considered in the valuation of these instruments do not result in an impact to earnings; however, there may be fair value adjustments related to credit quality variations between counterparties, which may impact earnings as required by FASB ASC 820. As of June 30, 2020, there were no fair value adjustments related to credit quality.

Risk Participation Agreements. The Corporation may enter into a risk participation agreement (“RPA”) with another institution as a means to assume a portion of the credit risk associated with a loan structure which includes a derivative instrument, in exchange for fee income commensurate with the risk assumed. This type of derivative is referred to as an “RPA sold.” In addition, in an effort to reduce the credit risk associated with an interest rate swap agreement with a borrower for whom the

Corporation has provided a loan structured with a derivative, the Corporation may purchase an RPA from an institution participating in the facility in exchange for a fee commensurate with the risk shared. This type of derivative is referred to as an “RPA purchased.”

The following tables detail the derivative instruments as of June 30, 2020 and December 31, 2019:

	Asset Derivatives				Liability Derivatives
(dollars in thousands)	Notional Amount		Fair Value		Notional Amount		Fair Value
Derivatives not designated as hedging instruments
As of June 30, 2020:
Customer derivatives – interest rate swaps	$	970,146	$	143,339	$	970,146	$	143,339
FX forwards	3,528		36		4,116		107
RPAs sold	—		—		14,164		39
RPAs purchased	39,995		358		—		—
Total derivatives	$	1,013,669	$	143,733	$	988,426	$	143,485
As of December 31, 2019:
Customer derivatives – interest rate swaps	$	790,209	$	47,627	$	790,209	$	47,627
RPAs sold	—		—		4,232		16
RPAs purchased	20,249		90		—		—
Total derivatives	$	810,458	$	47,717	$	794,441	$	47,643

The Corporation has International Swaps and Derivatives Association agreements with third parties that requires a minimum dollar transfer amount upon a margin call. This requirement is dependent on certain specified credit measures. The amount of collateral posted with third parties at June 30, 2020 and December 31, 2019 was $157.5 million and $63.8 million, respectively, and is comprised of a combination of cash and investment securities. The amount of collateral posted with third parties is deemed to be sufficient to collateralize both the fair market value change as well as any additional amounts that may be required as a result of a change in the specified credit measures. The aggregate fair value of all derivative financial instruments in a liability position with credit measure contingencies and entered into with third parties was $143.3 million and $46.7 million as of June 30, 2020 and December 31, 2019, respectively.

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Accounting for Uncertainty in Income Taxes

6 Months Ended

Jun. 30, 2020

Income Tax Disclosure [Abstract]

Accounting for Uncertainty in Income Taxes

Accounting for Uncertainty in Income Taxes

The Corporation recognizes the financial statement benefit of a tax position only after determining that the Corporation would be more likely than not to sustain the position following an examination. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50% likelihood of being realized upon settlement with the relevant tax authority.

The Corporation is subject to income taxes in the United States federal jurisdiction and multiple state jurisdictions. The Corporation is no longer subject to U.S. federal income tax examination by taxing authorities for years before 2016.

The Corporation’s policy is to record interest and penalties on uncertain tax positions as income tax expense. No interest or penalties were accrued for the six months ended June 30, 2020 or 2019.

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Shareholders' Equity

6 Months Ended

Jun. 30, 2020

Stockholders' Equity Note [Abstract]

Shareholders' Equity

Shareholders’ Equity

Dividend

On July 20, 2020, BMBC’s Board of Directors declared a regular quarterly dividend of $0.27 per share payable September 1, 2020 to shareholders of record as of August 3, 2020. During the second quarter of 2020, the Corporation paid or accrued, as applicable, a regular quarterly dividend of $0.26 per share. This dividend totaled $5.3 million, based on outstanding shares and restricted stock units as of April 30, 2020 of 20,251,459 shares.

S-3 Shelf Registration Statement and Offerings Thereunder

In May 2018, BMBC filed a shelf registration statement on Form S-3, SEC File No. 333-224849 (the “Shelf Registration Statement”). The Shelf Registration Statement allows BMBC to raise additional capital from time to time through offers and sales of registered securities consisting of common stock, debt securities, warrants, purchase contracts, rights and units or units consisting of any combination of the foregoing securities. BMBC may sell these securities using the prospectus in the Shelf Registration Statement, together with applicable prospectus supplements, from time to time, in one or more offerings.

In addition, BMBC has in place a Dividend Reinvestment and Stock Purchase Plan (the “Plan”), which allows it to issue up to 1,500,000 shares of registered common stock. The Plan allows for the grant of a request for waiver (“RFW”) above the Plan’s maximum investment of $120 thousand per account per year. A RFW is granted based on a variety of factors, including BMBC’s current and projected capital needs, prevailing market prices of BMBC’s common stock and general economic and market conditions.

For the three and six months ended June 30, 2020, BMBC did not issue any shares under the Plan. The Plan administrator conducted dividend reinvestments for Plan participants through open market purchases. No RFWs were approved during the three and six months ended June 30, 2020. No other sales of equity securities were executed under the Shelf Registration Statement during the three and six months ended June 30, 2020.

Option Exercises and Vesting of Restricted Stock Units (“RSUs”) and Performance Stock Units (“PSUs”)

In addition to shares that may be issued through the Plan, the Corporation also issues shares through the exercise of stock options and the vesting of RSUs and PSUs. During the six months ended June 30, 2020, 338 shares were issued pursuant to the exercise of stock options, increasing shareholders’ equity by $5 thousand. No shares were issued pursuant to the exercise of stock options during the three months ended June 30, 2020. The increase in shareholders’ equity related to the vesting of RSUs and PSUs, which is recognized over the vesting period through stock based compensation expense, was $624 thousand and $1.5 million for the three and six months ended June 30, 2020.

Stock Repurchases

On April 18, 2019, BMBC announced a new stock repurchase program (the “2019 Program”) pursuant to which the Corporation may repurchase up to 1,000,000 shares of BMBC's common stock. Under the 2019 Program, the Corporation may repurchase BMBC's common stock at any price, but the aggregate purchase price is not to exceed $45 million. The 2019 Program became effective in the second quarter of 2019. During the three months ended March 31, 2020, 207,201 shares were repurchased under the 2019 Program at an average price of $34.99. No shares were repurchased during the three months ended June 30, 2020. All share repurchases were accomplished in open market transactions. As of June 30, 2020, the maximum number of shares remaining authorized for repurchase under the 2019 Program was 710,032, at an aggregate purchase price not to exceed $34.8 million.

In addition to the 2019 Program, it is BMBC’s practice to retire shares to its treasury account upon the vesting of stock awards to certain officers in order to cover the statutory income tax withholdings related to such vestings.

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Accumulated Other Comprehensive Income (Loss)

6 Months Ended

Jun. 30, 2020

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive Income (Loss)

Accumulated Other Comprehensive Income (Loss)

The following table details the components of accumulated other comprehensive income (loss) for the three and six months ended June 30, 2020 and 2019:

(dollars in thousands)	Net Change in Unrealized Gains on Available-for- Sale Investment Securities		Net Change in Unfunded Pension Liability		Accumulated Other Comprehensive Income (Loss)
Balance, March 31, 2020	$	10,569	$	(1,700)	$	8,869
Other comprehensive income	127		23		150
Balance, June 30, 2020	$	10,696	$	(1,677)	$	9,019
Balance, March 31, 2019	$	(2,010)	$	(1,268)	$	(3,278)
Other comprehensive income	4,962		16		4,978
Balance, June 30, 2019	$	2,952	$	(1,252)	$	1,700

(dollars in thousands)	Net Change in Unrealized Gains on Available-for- Sale Investment Securities		Net Change in Unfunded Pension Liability		Accumulated Other Comprehensive Income (Loss)
Balance, December 31, 2019	$	3,910	$	(1,723)	$	2,187
Other comprehensive income	6,786		46		6,832
Balance, June 30, 2020	$	10,696	$	(1,677)	$	9,019
Balance, December 31, 2018	$	(6,229)	$	(1,284)	$	(7,513)
Other comprehensive income	9,181		32		9,213
Balance, June 30, 2019	$	2,952	$	(1,252)	$	1,700

The following table details the amounts reclassified from each component of accumulated other comprehensive income (loss) to each component’s applicable income statement line, for the three and six months ended June 30, 2020 and 2019:

	Amount Reclassified from Accumulated Other Comprehensive Income (Loss)
Description of Accumulated Other Comprehensive Income (Loss) Component	Three Months Ended June 30,				Affected Income Statement Category
	2020		2019
Unfunded pension liability:
Amortization of net loss included in net periodic pension costs(1)	$	17	$	13	Other operating expenses
Income tax effect	(3)		(3)		Income tax expense
Net of income tax	$	14	$	10	Net income

	Amount Reclassified from Accumulated Other Comprehensive Income (Loss)
Description of Accumulated Other Comprehensive Income (Loss) Component	Six Months Ended June 30,				Affected Income Statement Category
	2020		2019
Unfunded pension liability:
Amortization of net loss included in net periodic pension costs(1)	$	35	$	24	Other operating expenses
Income tax effect	(7)		(5)		Income tax expense
Net of income tax	$	28	$	19	Net income

(1) Accumulated other comprehensive income (loss) components are included in the computation of net periodic pension cost.

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Earnings per Common Share

6 Months Ended

Jun. 30, 2020

Earnings Per Share [Abstract]

Earnings per Common Share

Earnings per Common Share

Basic earnings per common share excludes dilution and is computed by dividing income available to common shareholders by the weighted-average common shares outstanding during the period. Diluted earnings per common share takes into account the potential dilution that would occur if in-the-money stock options were exercised and converted into common shares and RSUs and PSUs were vested. Proceeds assumed to have been received on option exercises are assumed to be used to purchase shares of BMBC’s common stock at the average market price during the period, as required by the treasury stock method of accounting. The effects of stock options are excluded from the computation of diluted earnings per share in periods in which the effect would be antidilutive.

	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in thousands except share and per share data)	2020		2019		2020		2019
Numerator:
Net income available to common shareholders	$	15,035	$	15,785	$	3,872	$	26,462
Denominator for basic earnings per share – weighted average shares outstanding	19,926,737		20,144,651		19,989,948		20,156,509
Effect of dilutive common shares	81,482		99,758		87,211		99,960
Denominator for diluted earnings per share – adjusted weighted average shares outstanding	20,008,219		20,244,409		20,077,159		20,256,469
Basic earnings per share	$	0.75	$	0.78	$	0.19	$	1.31
Diluted earnings per share	0.75		0.78		0.19		1.31
Antidilutive shares excluded from computation of average dilutive earnings per share	76,038		14,441		71,260		30,506

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Revenue from Contracts with Customers

6 Months Ended

Jun. 30, 2020

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers

Revenue from Contracts with Customers

All of the Corporation’s revenue from contracts with customers in the scope of ASC 606 is recognized within noninterest income. The following table presents the Corporation’s noninterest income by revenue stream and reportable segment for the three and six months ended June 30, 2020 and 2019. Items outside the scope of ASC 606 are noted as such.

	Three Months Ended June 30, 2020						Three Months Ended June 30, 2019
(dollars in thousands)	Banking		Wealth Management		Consolidated		Banking		Wealth Management		Consolidated
Fees for wealth management services	$	—	$	9,069	$	9,069	$	—	$	11,510	$	11,510
Insurance commissions	—		1,303		1,303		—		1,697		1,697
Capital markets revenue(1)	2,975		—		2,975		1,489		—		1,489
Service charges on deposit accounts	603		—		603		852		—		852
Loan servicing and other fees(1)	452		—		452		553		—		553
Net gain on sale of loans(1)	3,134		—		3,134		752		—		752
Dividends on FHLB and FRB stock(1)	243		—		243		316		—		316
Other operating income(2)	2,699		88		2,787		3,026		26		3,052
Total noninterest income	$	10,106	$	10,460	$	20,566	$	6,988	$	13,233	$	20,221

(1) Not within the scope of ASC 606.

(2) Other operating income includes Visa debit card income, safe deposit box rentals, and rent income totaling $733 thousand and $525 thousand for the three months ended June 30, 2020 and 2019, respectively, which are within the scope of ASC 606.

	Six Months Ended June 30, 2020						Six Months Ended June 30, 2019
(dollars in thousands)	Banking		Wealth Management		Consolidated		Banking		Wealth Management		Consolidated
Fees for wealth management services	$	—	$	20,237	$	20,237	$	—	$	21,902	$	21,902
Insurance commissions	—		2,836		2,836		—		3,369		3,369
Capital markets revenue(1)	5,336		—		5,336		3,708		—		3,708
Service charges on deposit accounts	1,449		—		1,449		1,660		—		1,660
Loan servicing and other fees(1)	913		—		913		1,162		—		1,162
Net gain on sale of loans(1)	3,916		—		3,916		1,071		—		1,071
Net gain (loss) on sale of OREO	148		—		148		(24)		—		(24)
Dividends on FHLB and FRB stock(1)	687		—		687		727		—		727
Other operating income(2)	3,243		101		3,344		5,852		47		5,899
Total noninterest income	$	15,692	$	23,174	$	38,866	$	14,156	$	25,318	$	39,474

(1) Not within the scope of ASC 606.

(2) Other operating income includes Visa debit card income, safe deposit box rentals, and rent income totaling $1.4 million and $1.0 million for the six months ended June 30, 2020 and 2019, respectively, which are within the scope of ASC 606.

A description of the Corporation’s primary revenue streams accounted for under ASC 606 follows:

Service Charges on Deposit Accounts: The Corporation earns fees from its deposit customers for transaction-based, account maintenance, and overdraft services. Transaction-based fees, which include services such as ATM use fees, stop payment charges, statement rendering, and ACH fees, are recognized at the time the transaction is executed as that is the point in time the Corporation fulfills the customer’s request. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of a month, representing the period over which the Corporation satisfies the performance obligation.

Overdraft fees are recognized at the point in time that the overdraft occurs. Service charges on deposits are withdrawn from the customer’s account balance.

Wealth Management Fees: The Corporation earns wealth management fee revenue from a variety of sources including fees from trust administration and other related fiduciary services, custody, investment management and advisory services, employee benefit account and IRA administration, estate settlement, tax service fees, shareholder service fees and brokerage.

Fees that are determined based on the market value of the assets held in their accounts are generally billed monthly or quarterly, in arrears, based on the market value of assets at the end of the previous billing period. Other related services that are based on a fixed fee schedule are recognized when the services are rendered. Fees that are transaction based, including trade execution services, are recognized at the point in time that the transaction is executed, i.e. the trade date.

Included in other assets on the balance sheet is a receivable for wealth management fees that have been earned but not yet collected.

Insurance Commissions: The Corporation earns commissions from the sale of insurance policies, which are generally calculated as a percentage of the policy premium, and contingent income, which is calculated based on the volume and performance of the policies held by each carrier. Obligations for the sale of insurance policies are generally satisfied at the point in time which the policy is executed and are recognized at the point in time in which the amounts are known and collection is reasonably assured. Performance metrics for contingent income are generally satisfied over time, not exceeding one year, and are recognized at the point in time in which the amounts are known and collection is reasonably assured.

Visa Debit Card Income: The Corporation earns income fees from debit cardholder transactions conducted through the Visa payment network. Fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing services provided to the cardholder.

Gains/Losses on Sales of OREO: The Corporation records a gain or loss from the sale of OREO when control of the property transfers to the buyer, which generally occurs at the time of an executed deed.

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Stock-Based Compensation

6 Months Ended

Jun. 30, 2020

Share-based Payment Arrangement [Abstract]

Stock-Based Compensation

Stock-Based Compensation

A. General Information

BMBC permits the issuance of stock options, dividend equivalents, performance stock awards, stock appreciation rights and restricted stock units or awards to employees and directors of the Corporation under several plans. The performance awards and restricted awards may be in the form of stock awards or stock units. Stock awards and stock units differ in that for a stock award, shares of restricted stock are issued in the name of the grantee, whereas a stock unit constitutes a promise to issue shares of stock upon vesting. The accounting for awards and units is identical. The terms and conditions of awards under the plans are determined by the Corporation’s Management Development and Compensation Committee.

Prior to April 25, 2007, all shares authorized for grant as stock-based compensation were limited to grants of stock options. On April 25, 2007, the shareholders approved BMBC’s “2007 Long-Term Incentive Plan” (the “2007 LTIP”) under which a total of 428,996 shares of BMBC’s common stock were made available for award grants. On April 28, 2010, the shareholders approved BMBC’s “2010 Long Term Incentive Plan” under which a total of 445,002 shares of BMBC’s common stock were made available for award grants, and on April 30, 2015, the shareholders approved an amendment and restatement of such plan (as amended and restated, the “2010 LTIP”) to, among other things, increase the number of shares available for award grants by 500,000 to 945,002.

In addition to the shareholder-approved plans mentioned in the preceding paragraph, BMBC periodically authorizes grants of stock-based compensation as inducement awards to new employees. This type of award does not require shareholder approval in accordance with Rule 5635(c)(4) of the NASDAQ listing rules.

The equity awards are authorized to be in the form of, among others, options to purchase BMBC’s common stock, RSUs and PSUs.

RSUs have a restriction based on the passage of time. The grant date fair value of the RSUs is based on the closing price on the date of the grant.

PSUs have restrictions based on performance criteria and the passage of time. The performance criteria may be a market-based criteria measured by BMBC’s total shareholder return (“TSR”) relative to the performance of the community bank index for the respective period. The fair value of the PSUs based on BMBC’s TSR relative to the performance of a designated peer group or the NASDAQ Community Bank Index is calculated using the Monte Carlo Simulation method. The performance criteria may also be based on a non-market-based criteria such as return on average equity relative to that designated peer group. The grant date fair value of these PSUs is based on the closing price of BMBC’s stock on the date of the grant. PSU grants may have a vesting percent ranging from 0% to 150%.

B. Other Stock Option Information

The following table provides information about options outstanding for the three and six months ended June 30, 2020:

	Shares	Weighted Average Exercise Price		Weighted Average Grant Date Fair Value
Options outstanding, March 31, 2020	563	$	21.32	$	19.09
Forfeited	—	—		—
Expired	—	—		—
Exercised	—	—		—
Options outstanding, June 30, 2020	563	21.32		19.09

	Shares	Weighted Average Exercise Price		Weighted Average Grant Date Fair Value
Options outstanding, December 31, 2019	901	$	19.33	$	16.78
Forfeited	—	—		—
Expired	—	—		—
Exercised	(338)	16.02		12.93
Options outstanding, June 30, 2020	563	21.32		19.09

As of June 30, 2020 there were no unvested options.

Proceeds, related tax benefits realized from options exercised and intrinsic value of options exercised were as follows for the periods presented:

	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in thousands)	2020		2019		2020		2019
Proceeds from exercise of stock options	$	—	$	82	$	5	$	622
Related tax benefit recognized	—		18		2		155
Net proceeds of options exercised	$	—	$	100	$	7	$	777
Intrinsic value of options exercised	$	—	$	86	$	8	$	738

The following table provides information about options outstanding and exercisable at June 30, 2020:

(dollars in thousands, except share data and exercise price)	Outstanding		Exercisable
Number of shares	563		563
Weighted average exercise price	$	21.32	$	21.32
Aggregate intrinsic value	$	4	$	4
Weighted average remaining contractual term in years	3.6		3.6

C. Restricted Stock Units and Performance Stock Units

The Corporation has granted RSUs and PSUs under the 2007 LTIP and 2010 LTIP and in accordance with Rule 5635(c)(4) of the NASDAQ listing standards.

RSUs

The compensation expense for the RSUs is measured based on the market price of the stock on the day prior to the grant date and is recognized on a straight-line basis over the vesting period.

For the three and six months ended June 30, 2020, the Corporation recognized $471 thousand and $0.9 million, respectively, of expense related to the Corporation’s RSUs. As of June 30, 2020, there was $2.8 million of unrecognized compensation cost related to RSUs. This cost will be recognized over a weighted average period of 2 years.

The following table details the RSUs for the three and six months ended June 30, 2020:

	Three Months Ended June 30, 2020			Six Months Ended June 30, 2020
	Number of Shares	Weighted Average Grant Date Fair Value		Number of Shares	Weighted Average Grant Date Fair Value
Beginning balance	136,725	$	38.02	115,466	$	38.57
Granted	—	—		26,818	35.90
Vested	(6,799)	39.82		(11,772)	39.73
Forfeited	—	—		(586)	35.74
Ending balance	129,926	37.92		129,926	37.92

PSUs

For the three and six months ended June 30, 2020, the Corporation recognized $153 thousand and $0.6 million, respectively, of expense related to the PSUs. As of June 30, 2020, there was $2.3 million of unrecognized compensation cost related to PSUs. This cost will be recognized over a weighted average period of 1.8 years.

The following table details the PSUs for the three and six months ended June 30, 2020:

	Three Months Ended June 30, 2020			Six Months Ended June 30, 2020
	Number of Shares	Weighted Average Grant Date Fair Value		Number of Shares	Weighted Average Grant Date Fair Value
Beginning balance	189,808	$	37.31	136,271	$	37.87
Granted	—	—		53,685	35.90
Vested	—	—		—	—
Forfeited	—	—		(148)	40.35
Ending balance	189,808	37.31		189,808	37.31

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Fair Value Measurement

6 Months Ended

Jun. 30, 2020

Fair Value Disclosures [Abstract]

Fair Value Measurement

Fair Value Measurement

FASB ASC 820, “Fair Value Measurements and Disclosures,” defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles and expands disclosures about fair value measurements. FASB ASC 820 also establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).

The three levels of the fair value hierarchy under FASB ASC Topic 820 are:

Level 1 – Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

Level 2 – Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active and model derived valuations whose inputs are observable or whose significant value drivers are observable.

Level 3 – Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity).

A. Assets and liabilities measured on a recurring basis

A description of the valuation methodologies used for financial instruments measured at fair value on a recurring basis, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. 

Investment Securities

The value of the Corporation’s available for sale investment securities, which include obligations of the U.S. government and its agencies, mortgage-backed securities issued by U.S. government- and U.S. government sponsored agencies, obligations of state and political subdivisions, corporate bonds and other debt securities are determined by the Corporation, taking into account the input of an independent third party valuation service provider. The third party’s evaluations are based on market data, utilizing pricing models that vary by asset and incorporate available trade, bid and other market information. For securities that do not trade on a daily basis, their pricing models apply available information such as benchmarking and matrix pricing. The market inputs normally sought in the evaluation of securities include benchmark yields, reported trades, broker/dealer quotes (only obtained from market makers or broker/dealers recognized as market participants), issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data. For certain securities, additional inputs may be used or some market inputs may not be applicable. Inputs are prioritized differently on any given day based on market conditions. Management reviews, annually, the process utilized by its independent third-party valuation service provider. On a quarterly basis, management tests the validity of the prices provided by the third party by selecting a representative sample of the portfolio and obtaining actual trade results, or if actual trade results are not available, competitive broker pricing. On an annual basis, management evaluates, for appropriateness, the methodology utilized by the independent third-party valuation service provider.

U.S. government agencies are evaluated and priced using multi-dimensional relational models and option adjusted spreads. State and municipal securities are evaluated on a series of matrices including reported trades and material event notices. Mortgage-backed securities are evaluated using matrix correlation to treasury or floating index benchmarks, prepayment speeds, monthly payment information and other benchmarks. Other available-for-sale investments are evaluated using a broker-quote based application, including quotes from issuers.

Interest Rate Swaps, FX Forwards, and Risk Participation Agreements 

The Corporation’s interest rate swaps, FX forwards, and RPAs are reported at fair value utilizing Level 2 inputs. Prices of these instruments are obtained through an independent pricing source utilizing pricing information which may include market observed quotations for swaps, LIBOR rates, forward rates and rate volatility. When entering into a derivative contract, the Corporation is exposed to fair value changes due to interest rate movements, and the potential non-performance of our contract counterparty. The Corporation has developed a methodology to value the non-performance risk based on internal credit risk metrics and the unique characteristics of derivative instruments, which include notional exposure rather than principle at risk and interest payment netting. The results of this methodology are used to adjust the base fair value of the instrument for the potential counterparty credit risk.

The following tables present the Corporation’s assets measured at fair value on a recurring basis as of June 30, 2020 and December 31, 2019:

As of June 30, 2020
(dollars in thousands)	Total		Level 1		Level 2		Level 3
Investment securities available for sale:
U.S. Treasury securities	$	100	$	100	$	—	$	—
Obligations of U.S. government & agencies	114,149		—		114,149		—
Obligations of state & political subdivisions	4,583		—		4,583		—
Mortgage-backed securities	377,204		—		377,204		—
Collateralized mortgage obligations	25,873		—		25,873		—
Corporate bonds	8,022		—		8,022		—
Other investment securities	650		—		650		—
Total investment securities available for sale	530,581		100		530,481		—
Investment securities trading:
Mutual funds	7,801		7,801		—		—
Derivatives:
Interest rate swaps	143,339		—		143,339		—
RPAs purchased	358		—		358		—
FX forwards	36		—		36		—
Total derivatives	143,733		—		143,733		—
Total recurring fair value measurements	$	682,115	$	7,901	$	674,214	$	—

As of December 31, 2019
(dollars in thousands)	Total		Level 1		Level 2		Level 3
Investment securities available for sale:
U.S. Treasury securities	$	500,101	$	500,101	$	—	$	—
Obligations of U.S. government & agencies	102,020		—		102,020		—
Obligations of state & political subdivisions	5,379		—		5,379		—
Mortgage-backed securities	366,002		—		366,002		—
Collateralized mortgage obligations	31,832		—		31,832		—
Other investment securities	650		—		650		—
Total investment securities available for sale	1,005,984		500,101		505,883		—
Investment securities trading:
Mutual funds	8,621		8,621		—		—
Derivatives:
Interest rate swaps	47,627		—		47,627		—
RPAs purchased	90		—		90		—
Total derivatives	47,717		—		47,717		—
Total recurring fair value measurements	$	1,062,322	$	508,722	$	553,600	$	—

There have been no transfers between levels during the three and six months ended June 30, 2020.

B. Assets and liabilities measured on a non-recurring basis

Fair value is used on a nonrecurring basis to evaluate certain financial assets and financial liabilities in specific circumstances. Similarly, fair value is used on a nonrecurring basis for nonfinancial assets and nonfinancial liabilities such as foreclosed assets, OREO, intangible assets, nonfinancial assets and liabilities evaluated in a goodwill impairment analysis and other nonfinancial assets measured at fair value for purposes of assessing impairment. A description of the valuation methodologies used for financial and nonfinancial assets and liabilities measured at fair value, as well as the general classification of such assets and liabilities pursuant to the valuation hierarchy, is set forth below.

Collateral-dependent Loans and Leases

Collateral-dependent loans and leases for which the repayment is expected to be provided substantially through the sale of the collateral and the borrower is experiencing financial difficulty are, in general, individually evaluated for credit losses. Management evaluates and values collateral-dependent loans and leases when management determines that foreclosure is probable or when the borrower is experiencing financial difficulty at the reporting date and repayment is expected to be provided substantially through the operation or sale of the collateral, and the fair values of such loans and leases are estimated using Level 3 inputs in the fair value hierarchy. Each loan’s collateral has a unique appraisal and management’s discount of the value is based on the factors unique to each loan or lease. The significant unobservable input in determining the fair value is management’s subjective discount on appraisals of the collateral securing the loan, which range from 10% - 50%. Collateral may consist of real estate and/or business assets including equipment, inventory and/or accounts receivable and the value of these assets is determined based on the appraisals by qualified licensed appraisers hired by the Corporation. Appraised and reported values may be discounted based on management’s historical knowledge, changes in market conditions from the time of valuation, estimated costs to sell, and/or management’s expertise and knowledge of the client and the client’s business.

The Corporation has an appraisal policy in which an appraisal is obtained for a commercial loan at the point at which the loan either becomes nonperforming or is downgraded to a substandard or worse classification. For consumer loans, management obtains updated appraisals when a loan becomes 90 days past due or when it receives other information that may indicate possible impairment. Based on the appraisals obtained by the Corporation, a partial or full charge-off may be necessary. 

Other Real Estate Owned (“OREO”)

OREO consists of properties acquired as a result of foreclosures and deeds in-lieu-of foreclosure. Properties classified as OREO are reported at the lower of cost or fair value less cost to sell, and are classified as Level 3 in the fair value hierarchy. The Corporation did not have any OREO at June 30, 2020 or December 31, 2019.

Mortgage Servicing Rights

The model to value MSRs estimates the present value of projected net servicing cash flows of the remaining servicing portfolio based on various assumptions, including changes in anticipated loan prepayment rates, the discount rate, reflective of a market participant's required return on an investment for similar assets, and other market-based economic factors. All of these assumptions are considered to be unobservable inputs. Accordingly, MSRs are classified within Level 3 of the fair value hierarchy.

The following tables present the Corporation’s assets measured at fair value on a non-recurring basis as of June 30, 2020 and December 31, 2019:

As of June 30, 2020
(dollars in thousands)	Total		Level 1		Level 2		Level 3
MSRs	$	3,440	$	—	$	—	$	3,440
Collateral-dependent loans and leases	8,217		—		—		8,217
Total non-recurring fair value measurements	$	11,657	$	—	$	—	$	11,657

As of December 31, 2019
(dollars in thousands)	Total		Level 1		Level 2		Level 3
MSRs	$	4,838	$	—	$	—	$	4,838
Impaired loans and leases	15,311		—		—		15,311
Total non-recurring fair value measurements	$	20,149	$	—	$	—	$	20,149

During the three and six months ended June 30, 2020, a net decrease and a net increase of $110 thousand and $122 thousand were recorded in the ACL on loans and leases as a result of adjusting the carrying value and estimated fair value of the collateral-dependent loans in the above tables.

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Fair Value of Financial Instruments

6 Months Ended

Jun. 30, 2020

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

Fair Value of Financial Instruments

FASB ASC 825, “Disclosures about Fair Value of Financial Instruments” requires disclosure of the fair value information about financial instruments, whether or not recognized in the balance sheet, for which it is practicable to estimate such value. The methodologies for estimating the fair value of financial assets and financial liabilities measured at fair value on a recurring and non-recurring basis are discussed above. The estimated fair value amounts have been determined by management using available market information and appropriate valuation methodologies, are based on the exit price notion. In cases where quoted market prices are not available, fair values are based on estimates using present value or other market value techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate settlement of the instrument. The aggregate fair value amounts presented below do not represent the underlying value of the Corporation.

The carrying amount and fair value of the Corporation’s financial instruments are as follows:

		June 30, 2020				December 31, 2019
(dollars in thousands)	Fair Value Hierarchy Level(1)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial assets:
Cash and cash equivalents	Level 1	$	464,521	$	464,521	$	53,931	$	53,931
Investment securities - available for sale	See Note 19	530,581		530,581		1,005,984		1,005,984
Investment securities - trading	See Note 19	7,801		7,801		8,621		8,621
Investment securities – held to maturity	Level 2	12,592		12,995		12,577		12,661
Loans held for sale	Level 2	4,116		4,116		4,249		4,249
Net portfolio loans and leases	Level 3	3,667,191		3,564,380		3,666,711		3,596,268
MSRs	Level 3	3,440		3,440		4,450		4,838
Interest rate swaps	Level 2	143,339		143,339		47,627		47,627
FX forwards	Level 2	36		36		—		—
RPAs purchased	Level 2	358		358		90		90
Other assets	Level 3	37,137		37,137		52,908		52,908
Total financial assets		$	4,871,112	$	4,768,704	$	4,857,148	$	4,787,177
Financial liabilities:
Deposits	Level 2	$	4,243,648	$	4,248,488	$	3,842,245	$	3,842,014
Short-term borrowings	Level 2	28,891		28,891		493,219		493,219
Long-term FHLB advances	Level 2	44,837		45,664		52,269		52,380
Subordinated notes	Level 2	98,794		91,748		98,705		97,199
Junior subordinated debentures	Level 2	21,843		26,097		21,753		25,652
Interest rate swaps	Level 2	143,339		143,339		47,627		47,627
FX forwards	Level 2	107		107		—		—
RPAs sold	Level 2	39		39		16		16
Other liabilities	Level 3	42,447		42,447		50,251		50,251
Total financial liabilities		$	4,623,945	$	4,626,820	$	4,606,085	$	4,608,358

(1) See Note 19 in the Notes to Unaudited Consolidated Financial Statements above for a description of hierarchy levels.

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Financial Instruments with Off-Balance Sheet Risk, Contingencies and Concentration of Credit Risk

6 Months Ended

Jun. 30, 2020

Commitments and Contingencies Disclosure [Abstract]

Financial Instruments with Off-Balance Sheet Risk, Contingencies and Concentration of Credit Risk

Financial Instruments with Off-Balance Sheet Risk, Contingencies and Concentration of Credit Risk

Off-Balance Sheet Arrangements

The Corporation is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the consolidated statements of financial condition. The contractual amounts of those instruments reflect the extent of involvement the Corporation has in particular classes of financial instruments.

The Corporation’s exposure to credit loss in the event of nonperformance by the counterparty to the financial instrument of commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Corporation uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet financial instruments.

Commitments to extend credit, which include unused lines of credit and unfunded commitments to originate loans, are agreements to lend to a customer as long as there is no violation of any condition established in the agreement. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Some of the commitments are expected to expire without being drawn upon, and the total commitment amounts do not necessarily represent future cash requirements. Total commitments to extend credit at June 30, 2020 and December 31, 2019 were $826.3 million and $828.9 million, respectively. Management evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Corporation upon extension of credit, is based on a credit evaluation of the counterparty. Collateral varies but may include accounts receivable, marketable securities, inventory, property, plant and equipment, residential real estate, and income-producing commercial properties.

Standby letters of credit are conditional commitments issued by the Bank to a customer for a third party. Such standby letters of credit are issued to support private borrowing arrangements. The credit risk involved in issuing standby letters of credit is similar to that involved in extending loan facilities to customers. The collateral varies, but may include accounts receivable, marketable securities, inventory, property, plant and equipment, and residential real estate for those commitments for which collateral is deemed necessary. The Corporation’s obligations under standby letters of credit as of June 30, 2020 and December 31, 2019 were $13.2 million and $20.7 million, respectively.

Contingencies

Legal Matters

In the ordinary course of its operations, BMBC and its subsidiaries are parties to various claims, litigation, investigations, and legal and administrative cases and proceedings. Such pending or threatened claims, litigation, investigations, legal and administrative cases and proceedings typically entail matters that are considered ordinary routine litigation incidental to our business. Claims for significant monetary damages may be asserted in many of these types of legal actions. Based on the information currently available, management believes it has meritorious defenses to the claims asserted against it in its currently outstanding legal proceedings and with respect to such legal proceedings, intends to continue to defend itself vigorously, litigating or settling cases according to management’s judgment as to what is in the best interests of the Corporation and its shareholders.

On a regular basis, liabilities and contingencies in connection with outstanding legal proceedings are assessed utilizing the latest information available. For those matters where it is probable that the Corporation will incur a loss and the amount of the loss can be reasonably estimated, a liability may be recorded in the Consolidated Financial Statements. These legal reserves may be increased or decreased to reflect any relevant developments on at least a quarterly basis. For other matters, where a loss is not probable or the amount or range of the loss is not estimable, legal reserves are not accrued. While the outcome of legal proceedings is inherently uncertain, based on information currently available, advice of counsel and available insurance coverage, management believes that the established legal reserves are adequate and the liabilities arising from legal proceedings will not have a material adverse effect on the consolidated financial position, consolidated results of operations or consolidated cash flows. However, in the event of unexpected future developments, it is possible that the ultimate resolution of these matters, if unfavorable, may be material to the consolidated financial position, consolidated results of operations or consolidated cash flows of the Corporation.

Crusader Servicing Corporation (“Crusader”), which was an 80% owned subsidiary of Royal Bank America that was acquired by the Bank in the RBPI merger, along with the Bank as successor-in-interest to Royal Bank America, are defendants in the case captioned Snyder v. Crusader Servicing Corporation et al., Case No. 2007-01027, in the Court of Common Pleas of Montgomery County, Pennsylvania. The case involves claims brought by a former Crusader shareholder in 2007 against Crusader, its former directors and remaining shareholders related, among other things, to a purported failure to pay amounts allegedly due to Snyder for his shares of Crusader stock. Subsequent to the end of the first quarter of 2019, on May 1, 2019, the Court rendered a decision against Crusader. The matter was appealed, and on March 18, 2020, the Superior Court of the Commonwealth of Pennsylvania returned an opinion reversing in part and affirming in part the trial court's judgment. The effect of this was to vacate the initial judgment awarded by the trial court, and instead to require an appraisal process in accordance with Crusader's Shareholders' Agreement to determine the value of Mr. Snyder's shares. We do not believe that this ruling and any monetary award ultimately payable by Crusader will be material to the consolidated financial position, consolidated results of operations or consolidated cash flows of the Corporation.

Indemnifications

In general, the Corporation does not sell loans with recourse, except to the extent that it arises from standard loan-sale contract provisions. These provisions cover violations of representations and warranties and, under certain circumstances, first payment default by borrowers. These indemnifications may include the repurchase of loans by the Corporation, and are considered customary provisions in the secondary market for conforming mortgage loan sales. Repurchases and losses have been rare and no provision is made for losses at the time of sale. There were no such repurchases for the three and six months ended June 30, 2020.

Concentrations of Credit Risk

The Corporation has a material portion of its loans in real estate-related loans. A predominant percentage of the Corporation’s real estate exposure, both commercial and residential, is in the Corporation’s primary trade area which includes portions of Delaware, Chester, Montgomery and Philadelphia counties in Southeastern Pennsylvania. Management is aware of this concentration and attempts to mitigate this risk to the extent possible in many ways, including the underwriting and assessment of borrower’s capacity to repay. See Note 4 – “Loans and Leases” for additional information.

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Segment Information

6 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Segment Information

Segment Information

FASB Codification 280 – “Segment Reporting” identifies operating segments as components of an enterprise which are evaluated regularly by the Corporation’s chief operating decision maker, our Chief Executive Officer, in deciding how to allocate resources and assess performance. The Corporation has applied the aggregation criterion set forth in this codification to the results of its operations.

The Corporation’s Banking segment consists of commercial and retail banking. The Banking segment is evaluated as a single strategic unit which generates revenues from a variety of products and services. The Banking segment generates interest income from its lending (including leases) and investing activities and is dependent on the gathering of lower cost deposits from its branch network or borrowed funds from other sources for funding its loans, resulting in the generation of net interest income. The Banking segment also derives revenues from other sources including gains on the sale in available for sale investment securities, gains on the sale of residential mortgage loans, service charges on deposit accounts, cash sweep fees, overdraft fees, bank owned life insurance (“BOLI”) income and revenue associated with its Visa Check Card offering. Also included in the Banking segment are two subsidiaries of the Bank, KCMI Capital, Inc. and Bryn Mawr Equipment Financing, Inc., both of which provide specialized lending solutions to our customers.

The Wealth Management segment has responsibility for a number of activities within the Corporation, including trust administration, other related fiduciary services, custody, investment management and advisory services, employee benefits and IRA administration, estate settlement, tax services and brokerage. Bryn Mawr Trust of Delaware is included in the Wealth Management segment of the Corporation since it has similar economic characteristics, products and services to those of the Wealth Management Division of the Bank. Effective January 1, 2020, the business of Lau Associates LLC was transitioned into the Wealth Management Division of the Bank. BMT Investment Advisers, formed in May 2017, which serves as investment adviser to BMT Investment Funds, a Delaware statutory trust, is also reported under the Wealth Management segment. In addition, the Wealth Management Division oversees all insurance services of the Corporation, which are conducted through the Bank’s insurance subsidiary, BMT Insurance Advisors, Inc., and are reported in the Wealth Management segment.

The accounting policies of the Corporation are applied by segment in the following tables. The segments are presented on a pre-tax basis.

The following tables detail the Corporation’s segments for the three and six months ended June 30, 2020 and 2019:

	Three Months Ended June 30, 2020									Three Months Ended June 30, 2019
(dollars in thousands)	Banking			Wealth Management			Consolidated			Banking			Wealth Management			Consolidated
Net interest income	$	37,384		$	1		$	37,385		$	36,610		$	1		$	36,611
PCL on loans and leases	4,302			—			4,302			1,627			—			1,627
Net interest income after PCL on loans and leases	33,082			1			33,083			34,983			1			34,984
Noninterest income:
Fees for wealth management services	—			9,069			9,069			—			11,510			11,510
Insurance commissions	—			1,303			1,303			—			1,697			1,697
Capital markets revenue	2,975			—			2,975			1,489			—			1,489
Service charges on deposit accounts	603			—			603			852			—			852
Loan servicing and other fees	452			—			452			553			—			553
Net gain on sale of loans	3,134			—			3,134			752			—			752
Other operating income	2,942			88			3,030			3,342			26			3,368
Total noninterest income	10,106			10,460			20,566			6,988			13,233			20,221
Noninterest expenses:
Salaries & wages	11,699			5,227			16,926			12,295			4,743			17,038
Employee benefits	2,301			920			3,221			2,338			979			3,317
Occupancy and bank premises	2,535			498			3,033			2,608			517			3,125
Amortization of intangible assets	291			619			910			328			628			956
Professional fees	1,357			218			1,575			1,221			95			1,316
Other operating expenses	7,496			1,475			8,971			7,983			1,453			9,436
Total noninterest expenses	25,679			8,957			34,636			26,773			8,415			35,188
Segment profit	17,509			1,504			19,013			15,198			4,819			20,017
Intersegment (revenues) expenses(1)	(177)			177			—			(125)			125			—
Pre-tax segment profit after eliminations	$	17,332		$	1,681		$	19,013		$	15,073		$	4,944		$	20,017
% of segment pre-tax profit after eliminations	91.2		%	8.8		%	100.0		%	75.3		%	24.7		%	100.0		%
Segment assets (dollars in millions)	$	5,221.7		$	49.6		$	5,271.3		$	4,682.0		$	54.6		$	4,736.6

	Six Months Ended June 30, 2020									Six Months Ended June 30, 2019
(dollars in thousands)	Banking			Wealth Management			Consolidated			Banking			Wealth Management			Consolidated
Net interest income	$	73,716		$	2		$	73,718		$	74,255		$	3		$	74,258
PCL on loans and leases	36,637			—			36,637			5,363			—			5,363
Net interest income after PCL on loans and leases	37,079			2			37,081			68,892			3			68,895
Noninterest income:
Fees for wealth management services	—			20,237			20,237			—			21,902			21,902
Insurance commissions	—			2,836			2,836			—			3,369			3,369
Capital markets revenue	5,336			—			5,336			3,708			—			3,708
Service charges on deposit accounts	1,449			—			1,449			1,660			—			1,660
Loan servicing and other fees	913			—			913			1,162			—			1,162
Net gain on sale of loans	3,916			—			3,916			1,071			—			1,071
Net gain (loss) on sale of OREO	148			—			148			(24)			—			(24)
Other operating income	3,930			101			4,031			6,579			47			6,626
Total noninterest income	15,692			23,174			38,866			14,156			25,318			39,474
Noninterest expenses:
Salaries & wages	23,558			10,357			33,915			28,070			9,869			37,939
Employee benefits	4,898			1,823			6,721			5,510			1,973			7,483
Occupancy and bank premises	5,051			997			6,048			5,340			1,037			6,377
Amortization of intangible assets	583			1,245			1,828			655			1,239			1,894
Professional fees	2,454			489			2,943			2,384			252			2,636
Other operating expenses	16,732			2,867			19,599			15,252			3,331			18,583
Total noninterest expenses	53,276			17,778			71,054			57,211			17,701			74,912
Segment (loss) profit	(505)			5,398			4,893			25,837			7,620			33,457
Intersegment (revenues) expenses(1)	(355)			355			—			(248)			248			—
Pre-tax segment profit after eliminations	$	(860)		$	5,753		$	4,893		$	25,589		$	7,868		$	33,457
% of segment pre-tax profit after eliminations	(17.6)		%	117.6		%	100.0		%	76.5		%	23.5		%	100.0		%
Segment assets (dollars in millions)	$	5,221.7		$	49.6		$	5,271.3		$	4,682.0		$	54.6		$	4,736.6

(1) Inter-segment revenues consist of rental payments, interest on deposits and management fees.

Wealth Management Segment Information

(dollars in millions)	June 30, 2020		December 31, 2019
Assets under management, administration, supervision and brokerage	$	17,012.9	$	16,548.1

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Recent Accounting Pronouncements (Policies)

6 Months Ended

Jun. 30, 2020

Accounting Policies [Abstract]

Adopted Pronouncements and Pronouncements Not Yet Effective

Adopted Pronouncements:

FASB ASU 2016-13 (Topic 326), “Measurement of Credit Losses on Financial Instruments”

On January 1, 2020, the Corporation adopted ASU 2016-13 (Topic 326), “Measurement of Credit Losses on Financial Instruments,” which replaces the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (or CECL) methodology. This standard eliminates the Provision for Loan and Lease Losses and Allowance for Loan and Lease Losses line items and establishes the Provision for Credit Losses (“PCL”) and Allowance for Credit Losses (“ACL”) line items.

The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables and held-to-maturity debt securities. It also applies to OBS credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and net investments in leases recognized by a lessor in accordance with Topic 842 on leases. In addition, ASC 326 made changes to the accounting for available for sale debt securities. One such change is to require credit losses to be presented as an allowance rather than as a write-down on available-for-sale debt securities management does not intend to sell or believes that it is more likely than not they will be required to sell.

The Corporation adopted ASC 326 using the modified retrospective approach method for all financial assets measured at amortized cost and OBS credit exposures. Results for reporting periods beginning after January 1, 2020 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. In conjunction with the adoption of CECL, the Corporation has revised its segmentation to align with the methodology applied in determining the ACL for loans and leases under CECL, which is based on federal call report codes which classify loans based on the primary collateral supporting the loan. Segmentation prior to the adoption of CECL was based on product type or purpose. As such, certain reclassifications were made to conform prior-period amounts to current period presentation.

Upon adoption, the Corporation's total ACL increased by $4.0 million, or 17.5%, which included an increase in ACL on loans and leases of $3.2 million and an increase in the reserve for OBS exposures, which is included within Other Liabilities on the Consolidated Balance Sheet, of $821 thousand. The increase in the total ACL resulted in a $2.8 million decrease to retained earnings, net of deferred taxes. The overall change in total ACL upon adoption was primarily due to the move to a life of loan reserve estimate as well as methodology changes required under CECL.

The Corporation adopted CECL using the prospective transition approach for financial assets purchased with credit deterioration (“PCD”) that were previously classified as purchased credit impaired (“PCI”) and accounted for under ASC 310-30. In accordance with the standard, management did not reassess whether PCI assets met the criteria of PCD assets as of the date of adoption. On January 1, 2020, the amortized cost basis of the PCD assets were adjusted to reflect the addition of $481 thousand of the allowance for credit losses. The remaining noncredit discount (based on the adjusted amortized cost basis) will be accreted into interest income at the effective interest rate as of January 1, 2020.

FASB ASU 2017-04 (Topic 350), “Intangibles – Goodwill and Others”

Issued in January 2017, ASU 2017-04 simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. ASU 2017-04 became effective for the Corporation on January 1, 2020, and will follow such guidance in connection with our next annual impairment testing, or prior to that if any such change constitutes a triggering event outside of the quarter from when the annual goodwill impairment test is performed. Management does not expect the adoption of this ASU to have a material impact on our Consolidated Financial Statements and related disclosures.

FASB ASU 2018-13, “Fair Value Measurement Disclosure Framework”

Issued in August 2018, ASU 2018-13 modifies, adds and removes certain disclosures aimed to improve the overall usefulness of the disclosure requirements for fair value measurements. The guidance became effective for the Corporation on January 1, 2020 and the adoption of this ASU did not have a material impact on our Consolidated Financial Statements and related disclosures.

Pronouncements Not Yet Effective:

FASB ASU 2018-14 (Topic 715), “Compensation-Retirement Benefits - Defined Benefit Plans-General”

Issued in August 2018, ASU 2018-14, modifies, adds and removes certain disclosures aimed to improve the overall usefulness of the disclosure requirements to financial statement users. The guidance is effective for annual periods beginning after December 15, 2020. Early adoption is permitted. Use of the retrospective method is required. Management does not expect the adoption of this ASU to have a material impact on our Consolidated Financial Statements and related disclosures.

FASB ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes”

Issued in December 2019, ASU 2019-12 adds new guidance to simplify accounting for income taxes, changes the accounting for certain income tax transactions and makes minor improvements to the codification. The guidance is effective for annual periods beginning after December 15, 2020. Early adoption is permitted. Management does not expect the adoption of this ASU to have a material impact on our Consolidated Financial Statements and related disclosures.

FASB ASU No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting”

Issued in March 2020, ASU No. 2020-04 provides optional guidance to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. Specifically, the guidance permits an entity, when certain criteria are met, to consider amendments to contracts made to comply with reference rate reform to meet the definition of a modification under GAAP. It further allows hedge accounting to be maintained and a one-time transfer or sale of qualifying held-to-maturity securities. The expedients and exceptions provided by the amendments are permitted to be adopted any time through December 31, 2022 and do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for certain optional expedients elected for certain hedging relationships existing as of December 31, 2022. Management is currently evaluating the potential impact of ASU 2020-04 on our Consolidated Financial Statements and related disclosures.

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Recent Accounting Pronouncements (Tables)

6 Months Ended

Jun. 30, 2020

Accounting Policies [Abstract]

Schedule of Impact of Adoption of CECL

The following table illustrates the adoption of CECL on January 1, 2020:

	January 1, 2020
	Pre-CECL Adoption		Reclassification to CECL Portfolio Segmentation		Pre-CECL Adoption Portfolio Segmentation		Post-CECL Adoption Portfolio Segmentation		Impact of CECL Adoption
Assets:
Loans and leases:
Commercial mortgage	$	1,913,430	$	(1,913,430)	$	—	$	—	$	—
CRE - nonowner-occupied	—		1,337,167		1,337,167		1,337,464		297
CRE - owner-occupied	—		527,607		527,607		527,607		—
Home equity lines of credit	194,639		29,623		224,262		224,262		—
Residential mortgage	489,903		(489,903)		—		—		—
Residential mortgage - first liens	—		706,690		706,690		706,843		153
Residential mortgage - junior liens	—		36,843		36,843		36,843		—
Construction	159,867		42,331		202,198		202,198		—
Commercial & Industrial	709,257		(277,030)		432,227		432,248		21
Consumer	57,139		102		57,241		57,241		—
Leases	165,078		—		165,078		165,088		10
Total loans and leases	$	3,689,313	$	—	$	3,689,313	$	3,689,794	$	481
ACL on loans and leases
Commercial mortgage	$	10,434	$	(10,434)	$	—	$	—	$	—
CRE - nonowner-occupied	—		7,960		7,960		7,493		(467)
CRE - owner-occupied	—		2,825		2,825		2,841		16
Home equity lines of credit	890		224		1,114		1,068		(46)
Residential mortgage	1,538		(1,538)		—		—		—
Residential mortgage - first liens	—		2,501		2,501		4,909		2,408
Residential mortgage - junior liens	—		338		338		417		79
Construction	997		233		1,230		871		(359)
Commercial & Industrial	6,029		(2,194)		3,835		3,676		(159)
Consumer	353		85		438		578		140
Leases	2,361		—		2,361		3,955		1,594
Total ACL on loans and leases	$	22,602	$	—	$	22,602	$	25,808	$	3,206
Liabilities:
ACL on OBS credit exposures	$	360	$	—	$	360	$	1,181	$	821
Total ACL	$	22,962	$	—	$	22,962	$	26,989	$	4,027
Retained earnings:
Total increase in ACL									$	4,027
Balance sheet reclassification									(481)
Total pre-tax impact									3,546
Tax effect									(745)
Decrease to retained earnings									$	2,801

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Investment Securities (Tables)

6 Months Ended

Jun. 30, 2020

Investments, Debt and Equity Securities [Abstract]

Schedule of Available-for-sale Securities

The amortized cost and fair value of investment securities available for sale as of June 30, 2020 and December 31, 2019 are as follows:

As of June 30, 2020

(dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. Treasury securities	$	100	$	—	$	—	$	100
Obligations of the U.S. government and agencies	113,046		1,120		(17)		114,149
Obligations of state and political subdivisions	4,553		30		—		4,583
Mortgage-backed securities	365,521		12,056		(373)		377,204
Collateralized mortgage obligations	25,171		702		—		25,873
Corporate bonds	8,000		22		—		8,022
Other investment securities	650		—		—		650
Total	$	517,041	$	13,930	$	(390)	$	530,581

As of December 31, 2019

(dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. Treasury securities	$	500,066	$	35	$	—	$	500,101
Obligations of the U.S. government and agencies	102,179		193		(352)		102,020
Obligations of state and political subdivisions	5,366		13		—		5,379
Mortgage-backed securities	360,977		5,182		(157)		366,002
Collateralized mortgage obligations	31,796		195		(159)		31,832
Other investment securities	650		—		—		650
Total	$	1,001,034	$	5,618	$	(668)	$	1,005,984

Summary of Available-for-sale Debt Securities, Unrealized Loss Position, Fair Value

The following tables present the aggregate amount of gross unrealized losses as of June 30, 2020 and December 31, 2019 on available for sale investment securities classified according to the amount of time those securities have been in a continuous unrealized loss position:

As of June 30, 2020

	Less than 12 Months				12 Months or Longer				Total
(dollars in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Obligations of the U.S. government and agencies	$	6,005	$	(17)	$	—	$	—	$	6,005	$	(17)
Mortgage-backed securities	32,503		(373)		—		—		32,503		(373)
Total	$	38,508	$	(390)	$	—	$	—	$	38,508	$	(390)

As of December 31, 2019

	Less than 12 Months				12 Months or Longer				Total
(dollars in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Obligations of the U.S. government and agencies	$	48,497	$	(315)	$	7,966	$	(37)	$	56,463	$	(352)
Mortgage-backed securities	33,783		(119)		5,977		(38)		39,760		(157)
Collateralized mortgage obligations	6,978		(67)		10,861		(92)		17,839		(159)
Total	$	89,258	$	(501)	$	24,804	$	(167)	$	114,062	$	(668)

Investments Classified by Contractual Maturity Date

The amortized cost and fair value of available for sale investment and mortgage-related securities available for sale as of June 30, 2020 and December 31, 2019, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	June 30, 2020				December 31, 2019
(dollars in thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Investment securities:
Due in one year or less	$	2,511	$	2,514	$	504,851	$	504,890
Due after one year through five years	11,808		11,905		38,710		38,623
Due after five years through ten years	102,829		103,479		53,598		53,457
Due after ten years	9,201		9,606		11,102		11,180
Subtotal	126,349		127,504		608,261		608,150
Mortgage-related securities(1)	390,692		403,077		392,773		397,834
Total	$	517,041	$	530,581	$	1,001,034	$	1,005,984

(1) Expected maturities of mortgage-related securities may differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

The amortized cost and fair value of held to maturity investment securities as of June 30, 2020 and December 31, 2019, by contractual maturity, are shown below:

	June 30, 2020				December 31, 2019
(dollars in thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Mortgage-backed securities(1)	$	12,592	$	12,995	$	12,577	$	12,661

(1) Expected maturities of mortgage-related securities may differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

Summary of Held-to-maturity Debt Securities

The amortized cost and fair value of investment securities held to maturity as of June 30, 2020 and December 31, 2019 are as follows:

As of June 30, 2020

(dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Mortgage-backed securities	$	12,592	$	403	$	—	$	12,995

As of December 31, 2019

(dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Mortgage-backed securities	$	12,577	$	104	$	(20)	$	12,661

Summary of Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value

The following table presents the aggregate amount of gross unrealized losses as of December 31, 2019 on held to maturity securities classified according to the amount of time those securities have been in a continuous unrealized loss position:

As of December 31, 2019

	Less than 12 Months				12 Months or Longer				Total
(dollars in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Mortgage-backed securities	$	3,159	$	(20)	$	—	$	—	$	3,159	$	(20)

XML

Loans and Leases (Tables)

6 Months Ended

Jun. 30, 2020

Receivables [Abstract]

Schedule of Accounts, Notes, Loans and Financing Receivable

The following table details the amortized cost of loans and leases as of the dates indicated:

Loans and Leases
	June 30, 2020						December 31, 2019
(dollars in thousands)	Originated		Acquired		Total Loans and Leases		Originated		Acquired		Total Loans and Leases
Loans held for sale	$	4,116	$	—	$	4,116	$	4,249	$	—	$	4,249
Real estate loans:
Commercial real estate (CRE) - nonowner-occupied	1,252,173		123,731		1,375,904		1,161,815		175,352		1,337,167
Commercial real estate (CRE) - owner-occupied	499,650		43,038		542,688		479,466		48,141		527,607
Home equity lines of credit	182,035		12,732		194,767		209,239		15,023		224,262
Residential mortgage - 1st liens	596,597		98,673		695,270		604,884		101,806		706,690
Residential mortgage - junior liens	32,083		1,561		33,644		34,903		1,940		36,843
Construction	203,833		8,541		212,374		193,307		8,891		202,198
Total real estate loans	2,766,371		288,276		3,054,647		2,683,614		351,153		3,034,767
Commercial & Industrial	451,228		6,301		457,529		425,322		6,905		432,227
Consumer	43,672		90		43,762		54,913		2,328		57,241
Leases	161,619		4,608		166,227		156,967		8,111		165,078
Total portfolio loans and leases	3,422,890		299,275		3,722,165		3,320,816		368,497		3,689,313
Total loans and leases	$	3,427,006	$	299,275	$	3,726,281	$	3,325,065	$	368,497	$	3,693,562
Loans with fixed rates	$	1,298,849	$	165,053	$	1,463,902	$	1,251,762	$	216,269	$	1,468,031
Loans with adjustable or floating rates	2,128,157		134,222		2,262,379		2,073,303		152,228		2,225,531
Total loans and leases	$	3,427,006	$	299,275	$	3,726,281	$	3,325,065	$	368,497	$	3,693,562
Net deferred loan origination fees (costs) included in the above loan table	$	210	$	—	$	210	$	(193)	$	—	$	(193)

Schedule of Components of Leveraged Lease Investments

The following table details the components of net investment in leases:

Components of Net Investment in Leases
	June 30, 2020						December 31, 2019
(dollars in thousands)	Originated		Acquired		Total Leases		Originated		Acquired		Total Leases
Minimum lease payments receivable	$	178,407	$	4,874	$	183,281	$	174,385	$	8,753	$	183,138
Unearned lease income	(23,182)		(346)		(23,528)		(23,641)		(813)		(24,454)
Initial direct costs and deferred fees	6,394		80		6,474		6,223		171		6,394
Total Leases	$	161,619	$	4,608	$	166,227	$	156,967	$	8,111	$	165,078

Schedule of Financing Receivables, Non Accrual Status

The following table details the amortized cost of nonperforming loans and leases as of the dates indicated:

Nonperforming Loans and Leases
	June 30, 2020						December 31, 2019
(dollars in thousands)	Originated		Acquired		Total Loans and Leases		Originated		Acquired		Total Loans and Leases
CRE - nonowner-occupied	$	245	$	—	$	245	$	199	$	—	$	199
CRE - owner-occupied	2,937		1,109		4,046		1,523		2,636		4,159
Home equity lines of credit	741		174		915		636		—		636
Residential mortgage - 1st liens	899		13		912		630		1,817		2,447
Residential mortgage - junior liens	72		—		72		83		—		83
Commercial & Industrial	1,642		331		1,973		1,799		381		2,180
Consumer	36		—		36		19		42		61
Leases	190		29		219		747		136		883
Total non-performing loans and leases	$	6,762	$	1,656	$	8,418	$	5,636	$	5,012	$	10,648

The following tables present the amortized cost basis of loans and leases on nonaccrual status and loans and leases past due over 89 days still accruing as of the dates indicated:

As of June 30, 2020
(dollars in thousands)	Nonaccrual with No ACL		Nonaccrual with ACL		Loans Past Due Over 89 Days Still Accruing
CRE - nonowner-occupied	$	245	$	—	$	—
CRE - owner-occupied	4,046		—		—
Home equity lines of credit	915		—		—
Residential mortgage - 1st liens	912		—		—
Residential mortgage - junior liens	72		—		—
Construction	—		—		—
Commercial & Industrial	1,973		—		—
Consumer	—		36		—
Leases	—		219		—
Total non-performing loans and leases	$	8,163	$	255	$	—

As of December 31, 2019
(dollars in thousands)	Nonaccrual with No ACL		Nonaccrual with ACL		Loans Past Due Over 89 Days Still Accruing
CRE - nonowner-occupied	$	199	$	—	$	—
CRE - owner-occupied	4,159		—		—
Home equity lines of credit	636		—		—
Residential mortgage - 1st liens	2,447		—		—
Residential mortgage - junior liens	83		—		—
Construction	—		—		—
Commercial & Industrial	2,180		—		—
Consumer	42		19		—
Leases	—		883		—
Total non-performing loans and leases	$	9,746	$	902	$	—

The following tables present the amortized cost basis of collateral-dependent loans and leases, indicating the type of collateral and the ACL determined through individual evaluation for credit loss, as of the dates indicated:

As of June 30, 2020
(dollars in thousands)	Real Estate Collateral		Non-Real Estate Collateral		Individually Evaluated ACL
CRE - nonowner-occupied	$	245	$	—	$	—
CRE - owner-occupied	4,046		—		—
Home equity lines of credit	915		—		—
Residential mortgage - 1st liens	912		—		—
Residential mortgage - junior liens	72		—		—
Construction	—		—		—
Commercial & Industrial	—		1,973		—
Consumer	—		36		36
Leases	—		219		165
Total collateral-dependent loans and leases	$	6,190	$	2,228	$	201

As of December 31, 2019
(dollars in thousands)	Real Estate Collateral		Non-Real Estate Collateral		Individually Evaluated ACL
CRE - nonowner-occupied	$	199	$	—	$	—
CRE - owner-occupied	4,159		—		—
Home equity lines of credit	636		—		—
Residential mortgage - 1st liens	2,447		—		—
Residential mortgage - junior liens	83		—		—
Construction	—		—		—
Commercial & Industrial	—		2,180		—
Consumer	—		61		19
Leases	—		883		60
Total collateral-dependent loans and leases	$	7,524	$	3,124	$	79

Past Due Financing Receivables

The following tables present an aging of all portfolio loans and leases as of the dates indicated:

Payment Status of All Portfolio Loans and Leases
	Accruing Loans and Leases
As of June 30, 2020	30 – 59 Days Past Due		60 – 89 Days Past Due		Over 89 Days Past Due		Total Past Due		Current		Total Accruing Loans and Leases		Nonaccrual Loans and Leases		Total Loans and Leases
(dollars in thousands)
CRE - nonowner-occupied	$	538	$	920	$	—	$	1,458	$	1,374,201	$	1,375,659	$	245	$	1,375,904
CRE - owner-occupied	995		501		—		1,496		537,146		538,642		4,046		542,688
Home equity lines of credit	214		22		—		236		193,616		193,852		915		194,767
Residential mortgage - 1st liens	4,826		153		—		4,979		689,379		694,358		912		695,270
Residential mortgage - junior liens	—		—		—		—		33,572		33,572		72		33,644
Construction	—		—		—		—		212,374		212,374		—		212,374
Commercial & Industrial	12		271		—		283		455,273		455,556		1,973		457,529
Consumer	9		76		—		85		43,641		43,726		36		43,762
Leases	1,337		148		—		1,485		164,523		166,008		219		166,227
Total portfolio loans and leases	$	7,931	$	2,091	$	—	$	10,022	$	3,703,725	$	3,713,747	$	8,418	$	3,722,165

Payment Status of All Portfolio Loans and Leases
	Accruing Loans and Leases
As of December 31, 2019	30 – 59 Days Past Due		60 – 89 Days Past Due		Over 89 Days Past Due		Total Past Due		Current		Total Accruing Loans and Leases		Nonaccrual Loans and Leases		Total Loans and Leases
(dollars in thousands)
CRE - nonowner-occupied	$	184	$	—	$	—	$	184	$	1,336,784	$	1,336,968	$	199	$	1,337,167
CRE - owner-occupied	2,462		—		—		2,462		520,986		523,448		4,159		527,607
Home equity lines of credit	354		365		—		719		222,907		223,626		636		224,262
Residential mortgage - 1st liens	1,639		388		—		2,027		702,216		704,243		2,447		706,690
Residential mortgage - junior liens	116		—		—		116		36,644		36,760		83		36,843
Construction	—		—		—		—		202,198		202,198		—		202,198
Commercial & Industrial	—		—		—		—		430,047		430,047		2,180		432,227
Consumer	98		140		—		238		56,942		57,180		61		57,241
Leases	857		594		—		1,451		162,744		164,195		883		165,078
Total portfolio loans and leases	$	5,710	$	1,487	$	—	$	7,197	$	3,671,468	$	3,678,665	$	10,648	$	3,689,313

The following tables present an aging of originated portfolio loans and leases as of the dates indicated:

Payment Status of Originated Portfolio Loans and Leases
	Accruing Loans and Leases
As of June 30, 2020	30 – 59 Days Past Due		60 – 89 Days Past Due		Over 89 Days Past Due		Total Past Due		Current		Total Accruing Loans and Leases		Nonaccrual Loans and Leases		Total Loans and Leases
(dollars in thousands)
CRE - nonowner-occupied	$	395	$	—	$	—	$	395	$	1,251,533	$	1,251,928	$	245	$	1,252,173
CRE - owner-occupied	995		383		—		1,378		495,335		496,713		2,937		499,650
Home equity lines of credit	112		22		—		134		181,160		181,294		741		182,035
Residential mortgage - 1st liens	1,007		121		—		1,128		594,570		595,698		899		596,597
Residential mortgage - junior liens	—		—		—		—		32,011		32,011		72		32,083
Construction	—		—		—		—		203,833		203,833		—		203,833
Commercial & Industrial	12		271		—		283		449,303		449,586		1,642		451,228
Consumer	9		76		—		85		43,551		43,636		36		43,672
Leases	1,256		147		—		1,403		160,026		161,429		190		161,619
Total portfolio loans and leases	$	3,786	$	1,020	$	—	$	4,806	$	3,411,322	$	3,416,128	$	6,762	$	3,422,890

Payment Status of Originated Portfolio Loans and Leases
	Accruing Loans and Leases
As of December 31, 2019	30 – 59 Days Past Due		60 – 89 Days Past Due		Over 89 Days Past Due		Total Past Due		Current		Total Accruing Loans and Leases		Nonaccrual Loans and Leases		Total Loans and Leases
(dollars in thousands)
CRE - nonowner-occupied	$	184	$	—	$	—	$	184	$	1,161,432	$	1,161,616	$	199	$	1,161,815
CRE - owner-occupied	2,462		—		—		2,462		475,481		477,943		1,523		479,466
Home equity lines of credit	254		365		—		619		207,984		208,603		636		209,239
Residential mortgage - 1st liens	890		102		—		992		603,262		604,254		630		604,884
Residential mortgage - junior liens	116		—		—		116		34,704		34,820		83		34,903
Construction	—		—		—		—		193,307		193,307		—		193,307
Commercial & Industrial	—		—		—		—		423,523		423,523		1,799		425,322
Consumer	18		88		—		106		54,788		54,894		19		54,913
Leases	781		566		—		1,347		154,873		156,220		747		156,967
Total portfolio loans and leases	$	4,705	$	1,121	$	—	$	5,826	$	3,309,354	$	3,315,180	$	5,636	$	3,320,816

The following tables present an aging of acquired portfolio loans and leases as of the dates indicated:

Payment Status of Acquired Portfolio Loans and Leases
	Accruing Loans and Leases
As of June 30, 2020	30 – 59 Days Past Due		60 – 89 Days Past Due		Over 89 Days Past Due		Total Past Due		Current		Total Accruing Loans and Leases		Nonaccrual Loans and Leases		Total Loans and Leases
(dollars in thousands)
CRE - nonowner-occupied	$	143	$	920	$	—	$	1,063	$	122,668	$	123,731	$	—	$	123,731
CRE - owner-occupied	—		118		—		118		41,811		41,929		1,109		43,038
Home equity lines of credit	102		—		—		102		12,456		12,558		174		12,732
Residential mortgage - 1st liens	3,819		32		—		3,851		94,809		98,660		13		98,673
Residential mortgage - junior liens	—		—		—		—		1,561		1,561		—		1,561
Construction	—		—		—		—		8,541		8,541		—		8,541
Commercial & Industrial	—		—		—		—		5,970		5,970		331		6,301
Consumer	—		—		—		—		90		90		—		90
Leases	81		1		—		82		4,497		4,579		29		4,608
Total portfolio loans and leases	$	4,145	$	1,071	$	—	$	5,216	$	292,403	$	297,619	$	1,656	$	299,275

Payment Status of Acquired Portfolio Loans and Leases
	Accruing Loans and Leases
As of December 31, 2019	30 – 59 Days Past Due		60 – 89 Days Past Due		Over 89 Days Past Due		Total Past Due		Current		Total Accruing Loans and Leases		Nonaccrual Loans and Leases		Total Loans and Leases
(dollars in thousands)
CRE - nonowner-occupied	$	—	$	—	$	—	$	—	$	175,352	$	175,352	$	—	$	175,352
CRE - owner-occupied	—		—		—		—		45,505		45,505		2,636		48,141
Home equity lines of credit	100		—		—		100		14,923		15,023		—		15,023
Residential mortgage - 1st liens	749		286		—		1,035		98,954		99,989		1,817		101,806
Residential mortgage - junior liens	—		—		—		—		1,940		1,940		—		1,940
Construction	—		—		—		—		8,891		8,891		—		8,891
Commercial & Industrial	—		—		—		—		6,524		6,524		381		6,905
Consumer	80		52		—		132		2,154		2,286		42		2,328
Leases	76		28		—		104		7,871		7,975		136		8,111
Total portfolio loans and leases	$	1,005	$	366	$	—	$	1,371	$	362,114	$	363,485	$	5,012	$	368,497

Allowance for Credit Losses on Financing Receivables

The following tables present the activity in the ACL on loans and leases, by portfolio segment, for the three and six months ended June 30, 2020 and 2019:

Roll-Forward of ACL on Loans and Leases

(dollars in thousands)	CRE - nonowner-occupied		CRE - owner-occupied		Home equity lines of credit		Residential mortgage - 1st liens		Residential mortgage - junior liens		Construction		Commercial & Industrial		Consumer		Leases		Total
Balance, March 31, 2020	$	13,329	$	4,192	$	2,748	$	8,316	$	517	$	6,984	$	8,734	$	341	$	8,909	$	54,070
Loans and leases charged-off	—		(1,234)		—		(556)		—		—		(522)		(296)		(1,443)		(4,051)
Recoveries collected	4		—		4		136		—		1		22		57		428		652
PCL on loans and leases	1,998		2,125		(1,125)		302		4		(924)		(246)		338		1,831		4,303
Balance, June 30, 2020	$	15,331	$	5,083	$	1,627	$	8,198	$	521	$	6,061	$	7,988	$	440	$	9,725	$	54,974

Roll-Forward of ACL on Loans and Leases

(dollars in thousands)	CRE - nonowner-occupied		CRE - owner-occupied		Home equity lines of credit		Residential mortgage - 1st liens		Residential mortgage - junior liens		Construction		Commercial & Industrial		Consumer		Leases		Total
Balance, December 31, 2019 Prior to Adoption of ASC 326	$	7,960	$	2,825	$	1,114	$	2,501	$	338	$	1,230	$	3,835	$	438	$	2,361	$	22,602
Impact of Adopting ASC 326	(467)		16		(46)		2,408		79		(359)		(159)		140		1,594		3,206
Loans and leases charged-off	—		(1,233)		(114)		(1,284)		—		—		(1,149)		(590)		(4,069)		(8,439)
Recoveries collected	6		—		4		137		—		2		37		90		692		968
PCL on loans and leases	7,832		3,475		669		4,436		104		5,188		5,424		362		9,147		36,637
Balance, June 30, 2020	$	15,331	$	5,083	$	1,627	$	8,198	$	521	$	6,061	$	7,988	$	440	$	9,725	$	54,974

Roll-Forward of ACL on Loans and Leases

(dollars in thousands)	CRE - nonowner-occupied		CRE - owner-occupied		Home equity lines of credit		Residential mortgage - 1st liens		Residential mortgage - junior liens		Construction		Commercial & Industrial		Consumer		Leases		Total
Balance, March 31, 2019	$	6,308	$	2,740	$	1,222	$	2,634	$	350	$	1,372	$	3,507	$	439	$	2,044	$	20,616
Loans and leases charged-off	—		—		(211)		(341)		(56)		—		(20)		(127)		(624)		(1,379)
Recoveries collected	5		—		83		2		4		1		37		7		179		318
PCL on loans and leases	520		(80)		158		349		45		(93)		58		20		650		1,627
Balance, June 30, 2019	$	6,833	$	2,660	$	1,252	$	2,644	$	343	$	1,280	$	3,582	$	339	$	2,249	$	21,182

Roll-Forward of ACL on Loans and Leases
(dollars in thousands)	CRE - nonowner-occupied		CRE - owner-occupied		Home equity lines of credit		Residential mortgage - 1st liens		Residential mortgage - junior liens		Construction		Commercial & Industrial		Consumer		Leases		Total
Balance, December 31, 2018	$	5,856	$	2,454	$	1,140	$	2,561	$	364	$	1,715	$	3,166	$	303	$	1,867	$	19,426
Loans and leases charged-off	(1,515)		—		(313)		(682)		(56)		—		(217)		(247)		(1,192)		(4,222)
Recoveries collected	7		—		84		15		4		2		45		25		433		615
PCL on loans and leases	2,485		206		341		750		31		(437)		588		258		1,141		5,363
Balance, June 30, 2019	$	6,833	$	2,660	$	1,252	$	2,644	$	343	$	1,280	$	3,582	$	339	$	2,249	$	21,182

Financing Receivable Credit Quality Indicators

The following table details the amortized cost of portfolio loans and leases, by year of origination (for term loans) and by risk grade within each portfolio segment as of June 30, 2020:

		Term Loans												Revolving Loans
		Amortized Cost Basis by Origination Year(1)												Amortized Cost Basis
(dollars in thousands)	Risk Rating	2020		2019		2018		2017		2016		2015 and Prior		Revolving Lines of Credit		Revolving Lines of Credit Converted to Term Loans		Total
CRE - nonowner-occupied	Pass	$	171,485	$	454,690	$	192,252	$	124,010	$	120,715	$	140,138	$	32,668	$	—	$	1,235,958
	Pass-Watch	332		676		2,963		—		1,686		2,455		—		—		8,112
	Special Mention	17,817		—		10,931		—		—		—		—		—		28,748
	Substandard	2,443		33,386		11,868		4,780		43,235		7,374		—		—		103,086
	Total	$	192,077	$	488,752	$	218,014	$	128,790	$	165,636	$	149,967	$	32,668	$	—	$	1,375,904
CRE - owner-occupied	Pass	$	73,670	$	111,679	$	109,629	$	87,028	$	51,683	$	50,568	$	13,430	$	—	$	497,687
	Pass-Watch	4,914		1,786		—		—		2,401		1,747		441		—		11,289
	Special Mention	3,367		434		3,698		—		—		879		50		—		8,428
	Substandard	3,153		6,746		7,597		860		5,907		858		163		—		25,284
	Total	$	85,104	$	120,645	$	120,924	$	87,888	$	59,991	$	54,052	$	14,084	$	—	$	542,688
Home equity lines of credit	Pass	$	98	$	887	$	332	$	123	$	276	$	2,777	$	184,201	$	4,327	$	193,021
	Special Mention	—		—		—		—		—		—		—		—		—
	Substandard	831		251		195		58		—		352		59		—		1,746
	Total	$	929	$	1,138	$	527	$	181	$	276	$	3,129	$	184,260	$	4,327	$	194,767
Residential mortgage - 1st liens	Pass	$	62,318	$	135,324	$	91,917	$	87,672	$	77,890	$	228,862	$	1,135	$	—	$	685,118
	Pass-Watch	505		—		—		—		—		265		—		—		770
	Special Mention	—		—		—		—		—		7,505		—		—		7,505
	Substandard	—		86		689		26		977		99		—		—		1,877
	Total	$	62,823	$	135,410	$	92,606	$	87,698	$	78,867	$	236,731	$	1,135	$	—	$	695,270
Residential mortgage - junior liens	Pass	$	1,825	$	5,056	$	9,251	$	4,371	$	3,412	$	9,425	$	177	$	—	$	33,517
	Substandard	55		—		—		—		36		36		—		—		127
	Total	$	1,880	$	5,056	$	9,251	$	4,371	$	3,448	$	9,461	$	177	$	—	$	33,644
Construction	Pass	$	85,546	$	66,421	$	25,739	$	10,134	$	—	$	5,079	$	13,033	$	—	$	205,952
	Pass-Watch	—		—		—		—		—		—		—		—		—
	Substandard	6,422		—		—		—		—		—		—		—		6,422
	Total	$	91,968	$	66,421	$	25,739	$	10,134	$	—	$	5,079	$	13,033	$	—	$	212,374
Commercial & Industrial	Pass	$	87,861	$	70,042	$	70,867	$	15,637	$	30,559	$	23,068	$	104,645	$	—	$	402,679
	Pass-Watch	10,564		7,656		205		3,492		305		916		6,486		—		29,624
	Special Mention	532		—		4,685		212		—		1,127		3,934		—		10,490
	Substandard	1,774		1,962		3,298		1,531		1,307		3,119		1,745		—		14,736
	Total	$	100,731	$	79,660	$	79,055	$	20,872	$	32,171	$	28,230	$	116,810	$	—	$	457,529
Consumer	Pass	$	1,154	$	4,817	$	2,554	$	379	$	32	$	235	$	33,401	$	—	$	42,572
	Substandard	1,154		18		6		12		—		—		—		—		1,190
	Total	$	2,308	$	4,835	$	2,560	$	391	$	32	$	235	$	33,401	$	—	$	43,762
Leases	Pass	$	34,974	$	69,578	$	45,476	$	12,391	$	3,163	$	426	$	—	$	—	$	166,008
	Substandard	—		69		66		68		16		—		—		—		219
	Total	$	34,974	$	69,647	$	45,542	$	12,459	$	3,179	$	426	$	—	$	—	$	166,227
Total portfolio loans and leases		$	572,794	$	971,564	$	594,218	$	352,784	$	343,600	$	487,310	$	395,568	$	4,327	$	3,722,165

(1) Year originated or renewed, whichever is more recent.

Troubled Debt Restructurings on Financing Receivables

The following table presents the balance of TDRs as of the indicated dates:

Troubled Debt Restructurings(1)
(dollars in thousands)	June 30, 2020		December 31, 2019
TDRs included in nonperforming loans and leases	$	1,792	$	3,018
TDRs in compliance with modified terms	10,013		5,071
Total TDRs	$	11,805	$	8,089

(1) The Corporation began entering into loan modifications with borrowers in response to the COVID-19 pandemic, which have not been  classified as TDRs, and therefore are not included in the above table. For more information on the criteria for classifying loans as TDRs, see Note 1 – Basis of Presentation, Principles of Consolidation, and Significant Accounting Policies to the Unaudited Consolidated Financial Statements.

The following tables present information regarding loan and lease modifications categorized as TDRs for the three and six months ended June 30, 2020: 

Troubled Debt Restructurings(1)
	For the Three Months Ended June 30, 2020
(dollars in thousands)	Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
CRE - nonowner-occupied	2	$	1,818	$	1,818
Residential mortgage - 1st liens	1	200		200
Construction	4	3,419		3,419
Leases	6	141		141
Total	13	$	5,578	$	5,578

Troubled Debt Restructurings(1)
	For the Six Months Ended June 30, 2020
(dollars in thousands)	Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
CRE - nonowner-occupied	2	$	1,818	$	1,818
Residential mortgage - 1st liens	1	200		200
Construction	4	3,419		3,419
Leases	6	141		141
Total	13	$	5,578	$	5,578

(1) The Corporation began entering into loan modifications with borrowers in response to the COVID-19 pandemic, which have not been  classified as TDRs, and therefore are not included in the above table. For more information on the criteria for classifying loans as TDRs, see Note 1 – Basis of Presentation, Principles of Consolidation, and Significant Accounting Policies to the Unaudited Consolidated Financial Statements.

The following table presents information regarding the types of loan and lease modifications made for the three and six months ended June 30, 2020:

Troubled Debt Restructurings(1)
	Number of Contracts for the Three Months Ended June 30, 2020
	Loan Term Extension	Interest Rate Change and Term Extension	Interest Rate Change and/or Interest-Only Period	Contractual Payment Reduction (Leases only)	Temporary Payment Deferral
CRE - nonowner-occupied	—	—	—	—	2
Residential mortgage - 1st liens	1	—	—	—	—
Construction	—	—	—	—	4
Leases	—	—	—	6	—
Total	1	—	—	6	6

Troubled Debt Restructurings(1)
	Number of Contracts for the Six Months Ended June 30, 2020
	Loan Term Extension	Interest Rate Change and Term Extension	Interest Rate Change and/or Interest-Only Period	Contractual Payment Reduction (Leases only)	Temporary Payment Deferral
CRE - nonowner-occupied	—	—	—	—	2
Residential mortgage - 1st liens	1	—	—	—	—
Construction	—	—	—	—	4
Leases	—	—	—	6	—
Total	1	—	—	6	6

(1) The Corporation began entering into loan modifications with borrowers in response to the COVID-19 pandemic, which have not been  classified as TDRs, and therefore are not included in the above table. For more information on the criteria for classifying loans as TDRs, see Note 1 – Basis of Presentation, Principles of Consolidation, and Significant Accounting Policies to the Unaudited Consolidated Financial Statements.

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Mortgage Servicing Rights (Tables)

6 Months Ended

Jun. 30, 2020

Transfers and Servicing [Abstract]

Servicing Asset at Amortized Cost

The following table summarizes the Corporation’s activity related to mortgage servicing rights (“MSRs”) for the three and six months ended June 30, 2020 and 2019:

	Three Months Ended June 30,
(dollars in thousands)	2020		2019
Balance, beginning of period	$	4,115	$	4,910
Additions	—		—
Amortization	(453)		(156)
Impairment	(222)		(10)
Balance, end of period	$	3,440	$	4,744
Fair value	$	3,440	$	5,175
Residential mortgage loans serviced for others	$	445,233	$	545,743

	Six Months Ended June 30,
(dollars in thousands)	2020		2019
Balance, beginning of period	$	4,450	$	5,047
Additions	—		—
Amortization	(557)		(276)
Impairment	(453)		(27)
Balance, end of period	$	3,440	$	4,744

Schedule of Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets

As of June 30, 2020, and December 31, 2019, key economic assumptions and the sensitivity of the current fair value of MSRs to immediate 10% and 20% adverse changes in those assumptions are as follows:

(dollars in thousands)	June 30, 2020			December 31, 2019
Fair value amount of MSRs	$	3,440		$	4,838
Weighted average life (in years)	4.7			6.0
Prepayment speeds (constant prepayment rate)(1)	14.4		%	10.5		%
Impact on fair value:
10% adverse change	$	(151)		$	(149)
20% adverse change	(292)			(297)
Discount rate	9.56		%	9.55		%
Impact on fair value:
10% adverse change	$	(88)		$	(166)
20% adverse change	(172)			(321)

(1) Represents the weighted average prepayment rate for the life of the MSR asset.

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Goodwill and Intangibles Assets (Tables)

6 Months Ended

Jun. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets and Goodwill

The following table presents activity in the Corporation's goodwill by its reporting units and finite-lived and indefinite-lived intangible assets, other than MSRs, for the six months ended June 30, 2020:

(dollars in thousands)	Balance December 31, 2019		Additions		Amortization		Balance June 30, 2020		Amortization Period
Goodwill – Wealth	$	20,412	$	—	$	—	$	20,412	Indefinite
Goodwill – Banking	156,991		—		—		156,991		Indefinite
Goodwill – Insurance	6,609		—		—		6,609		Indefinite
Total Goodwill	184,012		—		—		184,012
Core deposit intangible	4,598		—		(584)		4,014		10 years
Customer relationships	11,820		—		(906)		10,914		5 to 20 years
Non-compete agreements	911		—		(94)		817		5 to 10 years
Trade name	1,651		—		(244)		1,407		3 to 5 years
Domain name	151		—		—		151		Indefinite
Total Intangible Assets	19,131		—		(1,828)		17,303
Total Goodwill and Intangible Assets	$	203,143	$	—	$	(1,828)	$	201,315

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Deposits (Tables)

6 Months Ended

Jun. 30, 2020

Deposits [Abstract]

Summary of Deposits

The following table details the components of deposits:

(dollars in thousands)	June 30, 2020		December 31, 2019
Interest-bearing demand	$	910,441	$	944,915
Money market	1,239,523		1,106,478
Savings	249,636		220,450
Retail time deposits	400,186		405,123
Wholesale non-maturity deposits	146,463		177,865
Wholesale time deposits	79,903		89,241
Total interest-bearing deposits	3,026,152		2,944,072
Noninterest-bearing deposits	1,217,496		898,173
Total deposits	$	4,243,648	$	3,842,245

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Short-Term Borrowings and Long-Term FHLB Advances (Tables)

6 Months Ended

Jun. 30, 2020

Long-term Federal Home Loan Bank Advances [Abstract]

Schedule of Short-term Debt

A summary of short-term borrowings is as follows:

(dollars in thousands)	June 30, 2020		December 31, 2019
Repurchase agreements(1) – commercial customers	$	28,891	$	10,819
Short-term FHLB advances	—		482,400
Total short-term borrowings	$	28,891	$	493,219

(1) Overnight repurchase agreements with no expiration date

Schedule of Additional Information on Short Term Borrowings

The following table sets forth information concerning short-term borrowings:

	Three Months Ended June 30,						Six Months Ended June 30,
(dollars in thousands)	2020			2019			2020			2019
Balance at period-end	$	28,891		$	207,828		$	28,891		$	207,828
Maximum amount outstanding at any month end	174,431			207,828			174,431			207,828
Average balance outstanding during the period	136,816			68,529			138,700			112,844
Weighted-average interest rate:
As of the period-end	0.10		%	2.33		%	0.10		%	2.33		%
Paid during the period	0.68		%	2.09		%	0.99		%	2.32		%

Schedule of Maturities of Long-term Debt

The following table presents the remaining periods until maturity of long-term FHLB advances:

(dollars in thousands)	June 30, 2020		December 31, 2019
Within one year	$	4,861	$	12,363
Over one year through five years	39,976		39,906
Total	$	44,837	$	52,269

Schedule of Federal Home Loan Bank Advances and Other Borrowings Maturities

The following table presents rate and maturity information on FHLB advances and other borrowings: 

	Maturity Range(1)		Weighted Average Rate(1)		Coupon Rate(1)				Balance at
Description	From	To			From		To		June 30, 2020		December 31, 2019
Bullet maturity – fixed rate	12/9/2020	11/12/2021	1.73	%	1.40	%	2.13	%	$	44,837	$	52,269

(1) Maturity range, weighted average rate and coupon rate range refers to June 30, 2020 balances.

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Subordinated Notes (Tables)

6 Months Ended

Jun. 30, 2020

Subordinated Debt [Abstract]

Schedule of Long-term Debt Instruments

The following tables detail the subordinated notes, including debt issuance costs, as of June 30, 2020, and December 31, 2019:

	June 30, 2020				December 31, 2019
(dollars in thousands)	Balance		Rate(1)(2)		Balance		Rate(1)(2)
Subordinated notes – due 2027	$	69,071	4.25	%	$	69,009	4.25	%
Subordinated notes – due 2025	29,723		4.75		29,696		4.75
Total subordinated notes	$	98,794			$	98,705

(1) The 2027 Notes bear interest at an annual fixed rate of 4.25% from the date of issuance until and including December 14, 2022, and will thereafter bear interest at a variable rate that will reset quarterly to a level equal to the then-current three-month LIBOR rate plus 2.050% until December 15, 2027, or any early redemption date.

(2) The 2025 Notes bear interest at an annual fixed rate of 4.75% from the date of issuance until and including August 14, 2020, and will thereafter bear interest at a variable rate that will reset quarterly to a level equal to the then-current three-month LIBOR rate plus 3.068% until August 15, 2025, or any early redemption date.

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Operating Leases (Tables)

6 Months Ended

Jun. 30, 2020

Leases [Abstract]

Schedule of Components of Lease Cost

The components of lease expense were as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
(dollars in thousands)
Operating lease expense	$	1,198	$	1,333	$	2,396	$	2,663
Short term lease expense	14		14		29		29
Variable lease expense	308		392		665		810
Sublease income	(8)		(7)		(17)		(16)
Total lease expense	$	1,512	$	1,732	$	3,073	$	3,486

Supplemental cash flow information related to leases was as follows:

	Six Months Ended June 30,
	2020		2019
(dollars in thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	2,348	$	2,561
ROU assets obtained in exchange for lease liabilities	—		44,944

Lessee, Operating Lease, Liability, Maturity

Maturities of operating lease liabilities under FASB ASC 842 “Leases” as of June 30, 2020 are as follows:

	June 30, 2020
(dollars in thousands)
2020	$	2,357
2021	4,479
2022	4,200
2023	4,047
2024	4,076
2025 and thereafter	37,308
Total lease payments	56,467
Less: imputed interest	12,774
Present value of operating lease liabilities	$	43,693

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Derivative Instruments and Hedging Activities (Tables)

6 Months Ended

Jun. 30, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The following tables detail the derivative instruments as of June 30, 2020 and December 31, 2019:

	Asset Derivatives				Liability Derivatives
(dollars in thousands)	Notional Amount		Fair Value		Notional Amount		Fair Value
Derivatives not designated as hedging instruments
As of June 30, 2020:
Customer derivatives – interest rate swaps	$	970,146	$	143,339	$	970,146	$	143,339
FX forwards	3,528		36		4,116		107
RPAs sold	—		—		14,164		39
RPAs purchased	39,995		358		—		—
Total derivatives	$	1,013,669	$	143,733	$	988,426	$	143,485
As of December 31, 2019:
Customer derivatives – interest rate swaps	$	790,209	$	47,627	$	790,209	$	47,627
RPAs sold	—		—		4,232		16
RPAs purchased	20,249		90		—		—
Total derivatives	$	810,458	$	47,717	$	794,441	$	47,643

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Accumulated Other Comprehensive Income (Loss) (Tables)

6 Months Ended

Jun. 30, 2020

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

The following table details the components of accumulated other comprehensive income (loss) for the three and six months ended June 30, 2020 and 2019:

(dollars in thousands)	Net Change in Unrealized Gains on Available-for- Sale Investment Securities		Net Change in Unfunded Pension Liability		Accumulated Other Comprehensive Income (Loss)
Balance, March 31, 2020	$	10,569	$	(1,700)	$	8,869
Other comprehensive income	127		23		150
Balance, June 30, 2020	$	10,696	$	(1,677)	$	9,019
Balance, March 31, 2019	$	(2,010)	$	(1,268)	$	(3,278)
Other comprehensive income	4,962		16		4,978
Balance, June 30, 2019	$	2,952	$	(1,252)	$	1,700

(dollars in thousands)	Net Change in Unrealized Gains on Available-for- Sale Investment Securities		Net Change in Unfunded Pension Liability		Accumulated Other Comprehensive Income (Loss)
Balance, December 31, 2019	$	3,910	$	(1,723)	$	2,187
Other comprehensive income	6,786		46		6,832
Balance, June 30, 2020	$	10,696	$	(1,677)	$	9,019
Balance, December 31, 2018	$	(6,229)	$	(1,284)	$	(7,513)
Other comprehensive income	9,181		32		9,213
Balance, June 30, 2019	$	2,952	$	(1,252)	$	1,700

Reclassification out of Accumulated Other Comprehensive Income

The following table details the amounts reclassified from each component of accumulated other comprehensive income (loss) to each component’s applicable income statement line, for the three and six months ended June 30, 2020 and 2019:

	Amount Reclassified from Accumulated Other Comprehensive Income (Loss)
Description of Accumulated Other Comprehensive Income (Loss) Component	Three Months Ended June 30,				Affected Income Statement Category
	2020		2019
Unfunded pension liability:
Amortization of net loss included in net periodic pension costs(1)	$	17	$	13	Other operating expenses
Income tax effect	(3)		(3)		Income tax expense
Net of income tax	$	14	$	10	Net income

	Amount Reclassified from Accumulated Other Comprehensive Income (Loss)
Description of Accumulated Other Comprehensive Income (Loss) Component	Six Months Ended June 30,				Affected Income Statement Category
	2020		2019
Unfunded pension liability:
Amortization of net loss included in net periodic pension costs(1)	$	35	$	24	Other operating expenses
Income tax effect	(7)		(5)		Income tax expense
Net of income tax	$	28	$	19	Net income

(1) Accumulated other comprehensive income (loss) components are included in the computation of net periodic pension cost.

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Earnings per Common Share (Tables)

6 Months Ended

Jun. 30, 2020

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in thousands except share and per share data)	2020		2019		2020		2019
Numerator:
Net income available to common shareholders	$	15,035	$	15,785	$	3,872	$	26,462
Denominator for basic earnings per share – weighted average shares outstanding	19,926,737		20,144,651		19,989,948		20,156,509
Effect of dilutive common shares	81,482		99,758		87,211		99,960
Denominator for diluted earnings per share – adjusted weighted average shares outstanding	20,008,219		20,244,409		20,077,159		20,256,469
Basic earnings per share	$	0.75	$	0.78	$	0.19	$	1.31
Diluted earnings per share	0.75		0.78		0.19		1.31
Antidilutive shares excluded from computation of average dilutive earnings per share	76,038		14,441		71,260		30,506

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Revenue from Contracts with Customers (Tables)

6 Months Ended

Jun. 30, 2020

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

The following table presents the Corporation’s noninterest income by revenue stream and reportable segment for the three and six months ended June 30, 2020 and 2019. Items outside the scope of ASC 606 are noted as such.

	Three Months Ended June 30, 2020						Three Months Ended June 30, 2019
(dollars in thousands)	Banking		Wealth Management		Consolidated		Banking		Wealth Management		Consolidated
Fees for wealth management services	$	—	$	9,069	$	9,069	$	—	$	11,510	$	11,510
Insurance commissions	—		1,303		1,303		—		1,697		1,697
Capital markets revenue(1)	2,975		—		2,975		1,489		—		1,489
Service charges on deposit accounts	603		—		603		852		—		852
Loan servicing and other fees(1)	452		—		452		553		—		553
Net gain on sale of loans(1)	3,134		—		3,134		752		—		752
Dividends on FHLB and FRB stock(1)	243		—		243		316		—		316
Other operating income(2)	2,699		88		2,787		3,026		26		3,052
Total noninterest income	$	10,106	$	10,460	$	20,566	$	6,988	$	13,233	$	20,221

(1) Not within the scope of ASC 606.

(2) Other operating income includes Visa debit card income, safe deposit box rentals, and rent income totaling $733 thousand and $525 thousand for the three months ended June 30, 2020 and 2019, respectively, which are within the scope of ASC 606.

	Six Months Ended June 30, 2020						Six Months Ended June 30, 2019
(dollars in thousands)	Banking		Wealth Management		Consolidated		Banking		Wealth Management		Consolidated
Fees for wealth management services	$	—	$	20,237	$	20,237	$	—	$	21,902	$	21,902
Insurance commissions	—		2,836		2,836		—		3,369		3,369
Capital markets revenue(1)	5,336		—		5,336		3,708		—		3,708
Service charges on deposit accounts	1,449		—		1,449		1,660		—		1,660
Loan servicing and other fees(1)	913		—		913		1,162		—		1,162
Net gain on sale of loans(1)	3,916		—		3,916		1,071		—		1,071
Net gain (loss) on sale of OREO	148		—		148		(24)		—		(24)
Dividends on FHLB and FRB stock(1)	687		—		687		727		—		727
Other operating income(2)	3,243		101		3,344		5,852		47		5,899
Total noninterest income	$	15,692	$	23,174	$	38,866	$	14,156	$	25,318	$	39,474

(1) Not within the scope of ASC 606.

(2) Other operating income includes Visa debit card income, safe deposit box rentals, and rent income totaling $1.4 million and $1.0 million for the six months ended June 30, 2020 and 2019, respectively, which are within the scope of ASC 606.

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Stock-based Compensation (Tables)

6 Months Ended

Jun. 30, 2020

Share-based Payment Arrangement [Abstract]

Share-based Compensation, Stock Options, Activity

The following table provides information about options outstanding for the three and six months ended June 30, 2020:

	Shares	Weighted Average Exercise Price		Weighted Average Grant Date Fair Value
Options outstanding, March 31, 2020	563	$	21.32	$	19.09
Forfeited	—	—		—
Expired	—	—		—
Exercised	—	—		—
Options outstanding, June 30, 2020	563	21.32		19.09

Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Grant Date Intrinsic Value

Proceeds, related tax benefits realized from options exercised and intrinsic value of options exercised were as follows for the periods presented:

	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in thousands)	2020		2019		2020		2019
Proceeds from exercise of stock options	$	—	$	82	$	5	$	622
Related tax benefit recognized	—		18		2		155
Net proceeds of options exercised	$	—	$	100	$	7	$	777
Intrinsic value of options exercised	$	—	$	86	$	8	$	738

Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable

The following table provides information about options outstanding and exercisable at June 30, 2020:

(dollars in thousands, except share data and exercise price)	Outstanding		Exercisable
Number of shares	563		563
Weighted average exercise price	$	21.32	$	21.32
Aggregate intrinsic value	$	4	$	4
Weighted average remaining contractual term in years	3.6		3.6

Schedule of Nonvested Restricted Stock Units Activity

The following table details the RSUs for the three and six months ended June 30, 2020:

	Three Months Ended June 30, 2020			Six Months Ended June 30, 2020
	Number of Shares	Weighted Average Grant Date Fair Value		Number of Shares	Weighted Average Grant Date Fair Value
Beginning balance	136,725	$	38.02	115,466	$	38.57
Granted	—	—		26,818	35.90
Vested	(6,799)	39.82		(11,772)	39.73
Forfeited	—	—		(586)	35.74
Ending balance	129,926	37.92		129,926	37.92

Schedule of Nonvested Performance-based Units Activity

The following table details the PSUs for the three and six months ended June 30, 2020:

	Three Months Ended June 30, 2020			Six Months Ended June 30, 2020
	Number of Shares	Weighted Average Grant Date Fair Value		Number of Shares	Weighted Average Grant Date Fair Value
Beginning balance	189,808	$	37.31	136,271	$	37.87
Granted	—	—		53,685	35.90
Vested	—	—		—	—
Forfeited	—	—		(148)	40.35
Ending balance	189,808	37.31		189,808	37.31

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Fair Value Measurement (Tables)

6 Months Ended

Jun. 30, 2020

Fair Value Disclosures [Abstract]

Fair Value, Assets Measured on Recurring and Nonrecurring Basis

The following tables present the Corporation’s assets measured at fair value on a recurring basis as of June 30, 2020 and December 31, 2019:

As of June 30, 2020
(dollars in thousands)	Total		Level 1		Level 2		Level 3
Investment securities available for sale:
U.S. Treasury securities	$	100	$	100	$	—	$	—
Obligations of U.S. government & agencies	114,149		—		114,149		—
Obligations of state & political subdivisions	4,583		—		4,583		—
Mortgage-backed securities	377,204		—		377,204		—
Collateralized mortgage obligations	25,873		—		25,873		—
Corporate bonds	8,022		—		8,022		—
Other investment securities	650		—		650		—
Total investment securities available for sale	530,581		100		530,481		—
Investment securities trading:
Mutual funds	7,801		7,801		—		—
Derivatives:
Interest rate swaps	143,339		—		143,339		—
RPAs purchased	358		—		358		—
FX forwards	36		—		36		—
Total derivatives	143,733		—		143,733		—
Total recurring fair value measurements	$	682,115	$	7,901	$	674,214	$	—

As of December 31, 2019
(dollars in thousands)	Total		Level 1		Level 2		Level 3
Investment securities available for sale:
U.S. Treasury securities	$	500,101	$	500,101	$	—	$	—
Obligations of U.S. government & agencies	102,020		—		102,020		—
Obligations of state & political subdivisions	5,379		—		5,379		—
Mortgage-backed securities	366,002		—		366,002		—
Collateralized mortgage obligations	31,832		—		31,832		—
Other investment securities	650		—		650		—
Total investment securities available for sale	1,005,984		500,101		505,883		—
Investment securities trading:
Mutual funds	8,621		8,621		—		—
Derivatives:
Interest rate swaps	47,627		—		47,627		—
RPAs purchased	90		—		90		—
Total derivatives	47,717		—		47,717		—
Total recurring fair value measurements	$	1,062,322	$	508,722	$	553,600	$	—

The following tables present the Corporation’s assets measured at fair value on a non-recurring basis as of June 30, 2020 and December 31, 2019:

As of June 30, 2020
(dollars in thousands)	Total		Level 1		Level 2		Level 3
MSRs	$	3,440	$	—	$	—	$	3,440
Collateral-dependent loans and leases	8,217		—		—		8,217
Total non-recurring fair value measurements	$	11,657	$	—	$	—	$	11,657

As of December 31, 2019
(dollars in thousands)	Total		Level 1		Level 2		Level 3
MSRs	$	4,838	$	—	$	—	$	4,838
Impaired loans and leases	15,311		—		—		15,311
Total non-recurring fair value measurements	$	20,149	$	—	$	—	$	20,149

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Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2020

Fair Value Disclosures [Abstract]

Summary of Fair Value by Balance Sheet Grouping

The carrying amount and fair value of the Corporation’s financial instruments are as follows:

		June 30, 2020				December 31, 2019
(dollars in thousands)	Fair Value Hierarchy Level(1)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial assets:
Cash and cash equivalents	Level 1	$	464,521	$	464,521	$	53,931	$	53,931
Investment securities - available for sale	See Note 19	530,581		530,581		1,005,984		1,005,984
Investment securities - trading	See Note 19	7,801		7,801		8,621		8,621
Investment securities – held to maturity	Level 2	12,592		12,995		12,577		12,661
Loans held for sale	Level 2	4,116		4,116		4,249		4,249
Net portfolio loans and leases	Level 3	3,667,191		3,564,380		3,666,711		3,596,268
MSRs	Level 3	3,440		3,440		4,450		4,838
Interest rate swaps	Level 2	143,339		143,339		47,627		47,627
FX forwards	Level 2	36		36		—		—
RPAs purchased	Level 2	358		358		90		90
Other assets	Level 3	37,137		37,137		52,908		52,908
Total financial assets		$	4,871,112	$	4,768,704	$	4,857,148	$	4,787,177
Financial liabilities:
Deposits	Level 2	$	4,243,648	$	4,248,488	$	3,842,245	$	3,842,014
Short-term borrowings	Level 2	28,891		28,891		493,219		493,219
Long-term FHLB advances	Level 2	44,837		45,664		52,269		52,380
Subordinated notes	Level 2	98,794		91,748		98,705		97,199
Junior subordinated debentures	Level 2	21,843		26,097		21,753		25,652
Interest rate swaps	Level 2	143,339		143,339		47,627		47,627
FX forwards	Level 2	107		107		—		—
RPAs sold	Level 2	39		39		16		16
Other liabilities	Level 3	42,447		42,447		50,251		50,251
Total financial liabilities		$	4,623,945	$	4,626,820	$	4,606,085	$	4,608,358

(1) See Note 19 in the Notes to Unaudited Consolidated Financial Statements above for a description of hierarchy levels.

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Segment Information (Tables)

6 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

The following tables detail the Corporation’s segments for the three and six months ended June 30, 2020 and 2019:

	Three Months Ended June 30, 2020									Three Months Ended June 30, 2019
(dollars in thousands)	Banking			Wealth Management			Consolidated			Banking			Wealth Management			Consolidated
Net interest income	$	37,384		$	1		$	37,385		$	36,610		$	1		$	36,611
PCL on loans and leases	4,302			—			4,302			1,627			—			1,627
Net interest income after PCL on loans and leases	33,082			1			33,083			34,983			1			34,984
Noninterest income:
Fees for wealth management services	—			9,069			9,069			—			11,510			11,510
Insurance commissions	—			1,303			1,303			—			1,697			1,697
Capital markets revenue	2,975			—			2,975			1,489			—			1,489
Service charges on deposit accounts	603			—			603			852			—			852
Loan servicing and other fees	452			—			452			553			—			553
Net gain on sale of loans	3,134			—			3,134			752			—			752
Other operating income	2,942			88			3,030			3,342			26			3,368
Total noninterest income	10,106			10,460			20,566			6,988			13,233			20,221
Noninterest expenses:
Salaries & wages	11,699			5,227			16,926			12,295			4,743			17,038
Employee benefits	2,301			920			3,221			2,338			979			3,317
Occupancy and bank premises	2,535			498			3,033			2,608			517			3,125
Amortization of intangible assets	291			619			910			328			628			956
Professional fees	1,357			218			1,575			1,221			95			1,316
Other operating expenses	7,496			1,475			8,971			7,983			1,453			9,436
Total noninterest expenses	25,679			8,957			34,636			26,773			8,415			35,188
Segment profit	17,509			1,504			19,013			15,198			4,819			20,017
Intersegment (revenues) expenses(1)	(177)			177			—			(125)			125			—
Pre-tax segment profit after eliminations	$	17,332		$	1,681		$	19,013		$	15,073		$	4,944		$	20,017
% of segment pre-tax profit after eliminations	91.2		%	8.8		%	100.0		%	75.3		%	24.7		%	100.0		%
Segment assets (dollars in millions)	$	5,221.7		$	49.6		$	5,271.3		$	4,682.0		$	54.6		$	4,736.6

	Six Months Ended June 30, 2020									Six Months Ended June 30, 2019
(dollars in thousands)	Banking			Wealth Management			Consolidated			Banking			Wealth Management			Consolidated
Net interest income	$	73,716		$	2		$	73,718		$	74,255		$	3		$	74,258
PCL on loans and leases	36,637			—			36,637			5,363			—			5,363
Net interest income after PCL on loans and leases	37,079			2			37,081			68,892			3			68,895
Noninterest income:
Fees for wealth management services	—			20,237			20,237			—			21,902			21,902
Insurance commissions	—			2,836			2,836			—			3,369			3,369
Capital markets revenue	5,336			—			5,336			3,708			—			3,708
Service charges on deposit accounts	1,449			—			1,449			1,660			—			1,660
Loan servicing and other fees	913			—			913			1,162			—			1,162
Net gain on sale of loans	3,916			—			3,916			1,071			—			1,071
Net gain (loss) on sale of OREO	148			—			148			(24)			—			(24)
Other operating income	3,930			101			4,031			6,579			47			6,626
Total noninterest income	15,692			23,174			38,866			14,156			25,318			39,474
Noninterest expenses:
Salaries & wages	23,558			10,357			33,915			28,070			9,869			37,939
Employee benefits	4,898			1,823			6,721			5,510			1,973			7,483
Occupancy and bank premises	5,051			997			6,048			5,340			1,037			6,377
Amortization of intangible assets	583			1,245			1,828			655			1,239			1,894
Professional fees	2,454			489			2,943			2,384			252			2,636
Other operating expenses	16,732			2,867			19,599			15,252			3,331			18,583
Total noninterest expenses	53,276			17,778			71,054			57,211			17,701			74,912
Segment (loss) profit	(505)			5,398			4,893			25,837			7,620			33,457
Intersegment (revenues) expenses(1)	(355)			355			—			(248)			248			—
Pre-tax segment profit after eliminations	$	(860)		$	5,753		$	4,893		$	25,589		$	7,868		$	33,457
% of segment pre-tax profit after eliminations	(17.6)		%	117.6		%	100.0		%	76.5		%	23.5		%	100.0		%
Segment assets (dollars in millions)	$	5,221.7		$	49.6		$	5,271.3		$	4,682.0		$	54.6		$	4,736.6

(1) Inter-segment revenues consist of rental payments, interest on deposits and management fees.

Wealth Management Segment Information

(dollars in millions)	June 30, 2020		December 31, 2019
Assets under management, administration, supervision and brokerage	$	17,012.9	$	16,548.1

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Basis of Presentation, Principles of Consolidation, and Significant Accounting Policies (Details) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2020 USD ($)	Jun. 30, 2020 USD ($) trust	Jan. 01, 2020 USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of trusts acquired | trust		2
Accrued interest receivable on loans and leases	$ 12,500	$ 12,500
Accrued interest receivable on held to maturity debt securities	36	36
Accrued interest on available for sale debt securities	1,900	1,900
ACL on OBS credit exposure	3,300	3,300	$ 360
ACL on OBS credit exposure, provision (release) for credit losss	$ (867)	$ 2,100

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Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands		6 Months Ended
	Jan. 01, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accounting Standards Update [Extensible List]	us-gaap:AccountingStandardsUpdate201613Member	us-gaap:AccountingStandardsUpdate201613Member
Total Accruing Loans and Leases		$ 3,726,281		$ 3,693,562
Allowance on loans and leases	$ 22,962	54,974	$ 54,070	22,602	$ 21,182	$ 20,616	$ 19,426
ACL on OBS credit exposure	360	3,300
Retained earnings		$ 279,165		$ 288,653
Loans and Leases
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Accruing Loans and Leases	3,689,313
Allowance on loans and leases	22,602
Loans and Leases | Commercial mortgage
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Accruing Loans and Leases	1,913,430
Allowance on loans and leases	10,434
Loans and Leases | CRE - nonowner-occupied
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Accruing Loans and Leases	0
Allowance on loans and leases	0
Loans and Leases | CRE - owner-occupied
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Accruing Loans and Leases	0
Allowance on loans and leases	0
Loans and Leases | Home equity lines of credit
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Accruing Loans and Leases	194,639
Allowance on loans and leases	890
Loans and Leases | Residential mortgage
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Accruing Loans and Leases	489,903
Allowance on loans and leases	1,538
Loans and Leases | Residential mortgage - first liens
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Accruing Loans and Leases	0
Allowance on loans and leases	0
Loans and Leases | Residential mortgage - junior liens
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Accruing Loans and Leases	0
Allowance on loans and leases	0
Loans and Leases | Construction
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Accruing Loans and Leases	159,867
Allowance on loans and leases	997
Loans and Leases | Commercial & Industrial
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Accruing Loans and Leases	709,257
Allowance on loans and leases	6,029
Loans and Leases | Consumer
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Accruing Loans and Leases	57,139
Allowance on loans and leases	353
Loans and Leases | Leases
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Accruing Loans and Leases	165,078
Allowance on loans and leases	2,361
Reclassification to CECL Portfolio Segmentation
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance on loans and leases	0
ACL on OBS credit exposure	0
Reclassification to CECL Portfolio Segmentation | Loans and Leases
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Accruing Loans and Leases	0
Allowance on loans and leases	0
Reclassification to CECL Portfolio Segmentation | Loans and Leases | Commercial mortgage
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Accruing Loans and Leases	(1,913,430)
Allowance on loans and leases	(10,434)
Reclassification to CECL Portfolio Segmentation | Loans and Leases | CRE - nonowner-occupied
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Accruing Loans and Leases	1,337,167
Allowance on loans and leases	7,960
Reclassification to CECL Portfolio Segmentation | Loans and Leases | CRE - owner-occupied
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Accruing Loans and Leases	527,607
Allowance on loans and leases	2,825
Reclassification to CECL Portfolio Segmentation | Loans and Leases | Home equity lines of credit
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Accruing Loans and Leases	29,623
Allowance on loans and leases	224
Reclassification to CECL Portfolio Segmentation | Loans and Leases | Residential mortgage
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Accruing Loans and Leases	(489,903)
Allowance on loans and leases	(1,538)
Reclassification to CECL Portfolio Segmentation | Loans and Leases | Residential mortgage - first liens
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Accruing Loans and Leases	706,690
Allowance on loans and leases	2,501
Reclassification to CECL Portfolio Segmentation | Loans and Leases | Residential mortgage - junior liens
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Accruing Loans and Leases	36,843
Allowance on loans and leases	338
Reclassification to CECL Portfolio Segmentation | Loans and Leases | Construction
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Accruing Loans and Leases	42,331
Allowance on loans and leases	233
Reclassification to CECL Portfolio Segmentation | Loans and Leases | Commercial & Industrial
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Accruing Loans and Leases	(277,030)
Allowance on loans and leases	(2,194)
Reclassification to CECL Portfolio Segmentation | Loans and Leases | Consumer
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Accruing Loans and Leases	102
Allowance on loans and leases	85
Reclassification to CECL Portfolio Segmentation | Loans and Leases | Leases
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Accruing Loans and Leases	0
Allowance on loans and leases	0
Pre-CECL Adoption Portfolio Segmentation
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance on loans and leases	22,962
ACL on OBS credit exposure	360
Pre-CECL Adoption Portfolio Segmentation | Loans and Leases
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Accruing Loans and Leases	3,689,313
Allowance on loans and leases	22,602
Pre-CECL Adoption Portfolio Segmentation | Loans and Leases | Commercial mortgage
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Accruing Loans and Leases	0
Allowance on loans and leases	0
Pre-CECL Adoption Portfolio Segmentation | Loans and Leases | CRE - nonowner-occupied
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Accruing Loans and Leases	1,337,167
Allowance on loans and leases	7,960
Pre-CECL Adoption Portfolio Segmentation | Loans and Leases | CRE - owner-occupied
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Accruing Loans and Leases	527,607
Allowance on loans and leases	2,825
Pre-CECL Adoption Portfolio Segmentation | Loans and Leases | Home equity lines of credit
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Accruing Loans and Leases	224,262
Allowance on loans and leases	1,114
Pre-CECL Adoption Portfolio Segmentation | Loans and Leases | Residential mortgage
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Accruing Loans and Leases	0
Allowance on loans and leases	0
Pre-CECL Adoption Portfolio Segmentation | Loans and Leases | Residential mortgage - first liens
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Accruing Loans and Leases	706,690
Allowance on loans and leases	2,501
Pre-CECL Adoption Portfolio Segmentation | Loans and Leases | Residential mortgage - junior liens
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Accruing Loans and Leases	36,843
Allowance on loans and leases	338
Pre-CECL Adoption Portfolio Segmentation | Loans and Leases | Construction
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Accruing Loans and Leases	202,198
Allowance on loans and leases	1,230
Pre-CECL Adoption Portfolio Segmentation | Loans and Leases | Commercial & Industrial
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Accruing Loans and Leases	432,227
Allowance on loans and leases	3,835
Pre-CECL Adoption Portfolio Segmentation | Loans and Leases | Consumer
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Accruing Loans and Leases	57,241
Allowance on loans and leases	438
Pre-CECL Adoption Portfolio Segmentation | Loans and Leases | Leases
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Accruing Loans and Leases	165,078
Allowance on loans and leases	2,361
Post-CECL Adoption Portfolio Segmentation
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance on loans and leases	26,989
ACL on OBS credit exposure	1,181
Post-CECL Adoption Portfolio Segmentation | Loans and Leases
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Accruing Loans and Leases	3,689,794
Allowance on loans and leases	25,808
Post-CECL Adoption Portfolio Segmentation | Loans and Leases | Commercial mortgage
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Accruing Loans and Leases	0
Allowance on loans and leases	0
Post-CECL Adoption Portfolio Segmentation | Loans and Leases | CRE - nonowner-occupied
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Accruing Loans and Leases	1,337,464
Allowance on loans and leases	7,493
Post-CECL Adoption Portfolio Segmentation | Loans and Leases | CRE - owner-occupied
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Accruing Loans and Leases	527,607
Allowance on loans and leases	2,841
Post-CECL Adoption Portfolio Segmentation | Loans and Leases | Home equity lines of credit
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Accruing Loans and Leases	224,262
Allowance on loans and leases	1,068
Post-CECL Adoption Portfolio Segmentation | Loans and Leases | Residential mortgage
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Accruing Loans and Leases	0
Allowance on loans and leases	0
Post-CECL Adoption Portfolio Segmentation | Loans and Leases | Residential mortgage - first liens
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Accruing Loans and Leases	706,843
Allowance on loans and leases	4,909
Post-CECL Adoption Portfolio Segmentation | Loans and Leases | Residential mortgage - junior liens
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Accruing Loans and Leases	36,843
Allowance on loans and leases	417
Post-CECL Adoption Portfolio Segmentation | Loans and Leases | Construction
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Accruing Loans and Leases	202,198
Allowance on loans and leases	871
Post-CECL Adoption Portfolio Segmentation | Loans and Leases | Commercial & Industrial
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Accruing Loans and Leases	432,248
Allowance on loans and leases	3,676
Post-CECL Adoption Portfolio Segmentation | Loans and Leases | Consumer
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Accruing Loans and Leases	57,241
Allowance on loans and leases	578
Post-CECL Adoption Portfolio Segmentation | Loans and Leases | Leases
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Accruing Loans and Leases	165,088
Allowance on loans and leases	3,955
Impact of CECL Adoption
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance on loans and leases	$ 4,027
Allowance for credit loss (as a percent)	17.50%
ACL on OBS credit exposure	$ 821
Balance sheet reclassification	(481)
Total pre-tax impact	3,546
Tax effect	(745)
Retained earnings	2,801
Impact of CECL Adoption | Loans and Leases
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Accruing Loans and Leases	481
Allowance on loans and leases	3,206
Impact of CECL Adoption | Loans and Leases | Commercial mortgage
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Accruing Loans and Leases	0
Allowance on loans and leases	0
Impact of CECL Adoption | Loans and Leases | CRE - nonowner-occupied
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Accruing Loans and Leases	297
Allowance on loans and leases	(467)
Impact of CECL Adoption | Loans and Leases | CRE - owner-occupied
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Accruing Loans and Leases	0
Allowance on loans and leases	16
Impact of CECL Adoption | Loans and Leases | Home equity lines of credit
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Accruing Loans and Leases	0
Allowance on loans and leases	(46)
Impact of CECL Adoption | Loans and Leases | Residential mortgage
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Accruing Loans and Leases	0
Allowance on loans and leases	0
Impact of CECL Adoption | Loans and Leases | Residential mortgage - first liens
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Accruing Loans and Leases	153
Allowance on loans and leases	2,408
Impact of CECL Adoption | Loans and Leases | Residential mortgage - junior liens
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Accruing Loans and Leases	0
Allowance on loans and leases	79
Impact of CECL Adoption | Loans and Leases | Construction
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Accruing Loans and Leases	0
Allowance on loans and leases	(359)
Impact of CECL Adoption | Loans and Leases | Commercial & Industrial
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Accruing Loans and Leases	21
Allowance on loans and leases	(159)
Impact of CECL Adoption | Loans and Leases | Consumer
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Accruing Loans and Leases	0
Allowance on loans and leases	140
Impact of CECL Adoption | Loans and Leases | Leases
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Accruing Loans and Leases	10
Allowance on loans and leases	$ 1,594

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Investment Securities - Amortized Cost and Fair Value of Securities Available for Sale (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 517,041	$ 1,001,034
Gross Unrealized Gains	13,930	5,618
Gross Unrealized Losses	(390)	(668)
Fair Value	530,581	1,005,984
U.S. Treasury securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	100	500,066
Gross Unrealized Gains	0	35
Gross Unrealized Losses	0	0
Fair Value	100	500,101
Obligations of the U.S. government and agencies
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	113,046	102,179
Gross Unrealized Gains	1,120	193
Gross Unrealized Losses	(17)	(352)
Fair Value	114,149	102,020
Obligations of state and political subdivisions
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	4,553	5,366
Gross Unrealized Gains	30	13
Gross Unrealized Losses	0	0
Fair Value	4,583	5,379
Mortgage-backed securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	365,521	360,977
Gross Unrealized Gains	12,056	5,182
Gross Unrealized Losses	(373)	(157)
Fair Value	377,204	366,002
Collateralized mortgage obligations
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	25,171	31,796
Gross Unrealized Gains	702	195
Gross Unrealized Losses	0	(159)
Fair Value	25,873	31,832
Corporate bonds
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	8,000
Gross Unrealized Gains	22
Gross Unrealized Losses	0
Fair Value	8,022
Other investment securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	650	650
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	$ 650	$ 650

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Investment Securities - Securities Available for Sale in an Unrealized Loss Position (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Fair Value
Securities available for sale, less than 12 months, fair value	$ 38,508	$ 89,258
Securities available for sale, 12 months or longer, fair value	0	24,804
Securities available for sale, fair value	38,508	114,062
Unrealized Losses
Securities available for sale, less than 12 months, unrealized losses	(390)	(501)
Securities available for sale, 12 months or longer, unrealized losses	0	(167)
Securities available for sale, unrealized losses	(390)	(668)
Obligations of the U.S. government and agencies
Fair Value
Securities available for sale, less than 12 months, fair value	6,005	48,497
Securities available for sale, 12 months or longer, fair value	0	7,966
Securities available for sale, fair value	6,005	56,463
Unrealized Losses
Securities available for sale, less than 12 months, unrealized losses	(17)	(315)
Securities available for sale, 12 months or longer, unrealized losses	0	(37)
Securities available for sale, unrealized losses	(17)	(352)
Mortgage-backed securities
Fair Value
Securities available for sale, less than 12 months, fair value	32,503	33,783
Securities available for sale, 12 months or longer, fair value	0	5,977
Securities available for sale, fair value	32,503	39,760
Unrealized Losses
Securities available for sale, less than 12 months, unrealized losses	(373)	(119)
Securities available for sale, 12 months or longer, unrealized losses	0	(38)
Securities available for sale, unrealized losses	$ (373)	(157)
Collateralized mortgage obligations
Fair Value
Securities available for sale, less than 12 months, fair value		6,978
Securities available for sale, 12 months or longer, fair value		10,861
Securities available for sale, fair value		17,839
Unrealized Losses
Securities available for sale, less than 12 months, unrealized losses		(67)
Securities available for sale, 12 months or longer, unrealized losses		(92)
Securities available for sale, unrealized losses		$ (159)

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Investment Securities - Narrative (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2020 USD ($) security	Dec. 31, 2019 USD ($)
Investments, Debt and Equity Securities [Abstract]
Number of available-for-sale investments | security	392
Number of securities in an unrealized loss position | security	14
Percentage of available-for-sale securities	97.00%
Securities pledged as collateral	$ 268,200	$ 156,400
Accrued interest receivable on held to maturity debt securities	36
Investment securities held in trading accounts	$ 7,801	$ 8,621

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Investment Securities - Securities by Contractual Maturity (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Amortized Cost
Available for sale securities, due in one year or less, amortized cost	$ 2,511	$ 504,851
Available for sale securities, due after one year through five years, amortized cost	11,808	38,710
Available for sale securities, due after five years through ten years, amortized cost	102,829	53,598
Available for sale securities, due after ten years, amortized cost	9,201	11,102
Available for sale securities, subtotal, amortized cost	126,349	608,261
Amortized Cost	517,041	1,001,034
Fair Value
Available for sale securities, due in one year or less, fair value	2,514	504,890
Available for sale securities, due after one year through five years, fair value	11,905	38,623
Available for sale securities, due after five years through ten years, fair value	103,479	53,457
Available for sale securities, due after ten years, fair value	9,606	11,180
Available for sale securities, subtotal, fair value	127,504	608,150
Fair Value	530,581	1,005,984
Mortgage-related securities
Amortized Cost
Available for sale securities, no stated maturity, amortized cost	390,692	392,773
Amortized Cost	365,521	360,977
Fair Value
Available for sale securities, no stated maturity, fair value	403,077	397,834
Fair Value	$ 377,204	$ 366,002

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Investment Securities - Amortized Cost and Fair Value of Securities Held to Maturity (Details) - Mortgage-backed securities - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Schedule of Held-to-maturity Securities [Line Items]
Held to maturity securities, amortized cost	$ 12,592	$ 12,577
Held to maturity securities, gross unrealized gains	403	104
Held to maturity securities, gross unrealized losses	0	(20)
Held to maturity securities, fair value	$ 12,995	$ 12,661

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Investment Securities - Securities Held to Maturity in an Unrealized Loss Position (Details) - Mortgage-backed securities $ in Thousands	Dec. 31, 2019 USD ($)
Fair Value
Held to maturity securities, less than 12 months, fair value	$ 3,159
Held to maturity securities, 12 months or longer, fair value	0
Held to maturity securities, fair value	3,159
Unrealized Losses
Held to maturity securities, less than 12 months, unrealized losses	(20)
Held to maturity securities, 12 months or longer, unrealized losses	0
Held to maturity securities, unrealized losses	$ (20)

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Investment Securities - Amortized Cost and Fair Value of Held to Maturity Securities (Details) - Mortgage-backed securities - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	$ 12,592	$ 12,577
Fair Value	$ 12,995	$ 12,661

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Loans and Leases - Portfolio Loans and Leases (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Loans and Leases Receivable Disclosure [Line Items]
Loans held for sale	$ 4,116	$ 4,249
Total portfolio loans and leases	3,722,165	3,689,313
Total loans and leases	3,667,191	3,666,711
Loans with fixed rates	1,463,902	1,468,031
Loans with adjustable or floating rates	2,262,379	2,225,531
Net portfolio loans and leases	3,667,191	3,666,711
Net deferred loan origination fees included in the above loan table	210	(193)
Total Accruing Loans and Leases	3,726,281	3,693,562
Real estate loans
Loans and Leases Receivable Disclosure [Line Items]
Total portfolio loans and leases	3,054,647	3,034,767
Real estate loans | CRE - nonowner-occupied
Loans and Leases Receivable Disclosure [Line Items]
Total portfolio loans and leases	1,375,904	1,337,167
Real estate loans | CRE - owner-occupied
Loans and Leases Receivable Disclosure [Line Items]
Total portfolio loans and leases	542,688	527,607
Real estate loans | Home equity lines of credit
Loans and Leases Receivable Disclosure [Line Items]
Total portfolio loans and leases	194,767	224,262
Real estate loans | Residential mortgage | 1st liens
Loans and Leases Receivable Disclosure [Line Items]
Total portfolio loans and leases	695,270	706,690
Real estate loans | Residential mortgage | Junior liens
Loans and Leases Receivable Disclosure [Line Items]
Total portfolio loans and leases	33,644	36,843
Real estate loans | Construction
Loans and Leases Receivable Disclosure [Line Items]
Total portfolio loans and leases	212,374	202,198
Commercial & Industrial
Loans and Leases Receivable Disclosure [Line Items]
Total portfolio loans and leases	457,529	432,227
Consumer
Loans and Leases Receivable Disclosure [Line Items]
Total portfolio loans and leases	43,762	57,241
Leases
Loans and Leases Receivable Disclosure [Line Items]
Total portfolio loans and leases	166,227	165,078
Originated
Loans and Leases Receivable Disclosure [Line Items]
Loans held for sale	4,116	4,249
Total portfolio loans and leases	3,422,890	3,320,816
Loans with fixed rates	1,298,849	1,251,762
Loans with adjustable or floating rates	2,128,157	2,073,303
Net deferred loan origination fees included in the above loan table	210	(193)
Total Accruing Loans and Leases	3,427,006	3,325,065
Originated | Real estate loans
Loans and Leases Receivable Disclosure [Line Items]
Total portfolio loans and leases	2,766,371	2,683,614
Originated | Real estate loans | CRE - nonowner-occupied
Loans and Leases Receivable Disclosure [Line Items]
Total portfolio loans and leases	1,252,173	1,161,815
Originated | Real estate loans | CRE - owner-occupied
Loans and Leases Receivable Disclosure [Line Items]
Total portfolio loans and leases	499,650	479,466
Originated | Real estate loans | Home equity lines of credit
Loans and Leases Receivable Disclosure [Line Items]
Total portfolio loans and leases	182,035	209,239
Originated | Real estate loans | Residential mortgage | 1st liens
Loans and Leases Receivable Disclosure [Line Items]
Total portfolio loans and leases	596,597	604,884
Originated | Real estate loans | Residential mortgage | Junior liens
Loans and Leases Receivable Disclosure [Line Items]
Total portfolio loans and leases	32,083	34,903
Originated | Real estate loans | Construction
Loans and Leases Receivable Disclosure [Line Items]
Total portfolio loans and leases	203,833	193,307
Originated | Commercial & Industrial
Loans and Leases Receivable Disclosure [Line Items]
Total portfolio loans and leases	451,228	425,322
Originated | Consumer
Loans and Leases Receivable Disclosure [Line Items]
Total portfolio loans and leases	43,672	54,913
Originated | Leases
Loans and Leases Receivable Disclosure [Line Items]
Total portfolio loans and leases	161,619	156,967
Acquired
Loans and Leases Receivable Disclosure [Line Items]
Loans held for sale	0	0
Total portfolio loans and leases	299,275	368,497
Loans with fixed rates	165,053	216,269
Loans with adjustable or floating rates	134,222	152,228
Net deferred loan origination fees included in the above loan table	0	0
Total Accruing Loans and Leases	299,275	368,497
Acquired | Real estate loans
Loans and Leases Receivable Disclosure [Line Items]
Total portfolio loans and leases	288,276	351,153
Acquired | Real estate loans | CRE - nonowner-occupied
Loans and Leases Receivable Disclosure [Line Items]
Total portfolio loans and leases	123,731	175,352
Acquired | Real estate loans | CRE - owner-occupied
Loans and Leases Receivable Disclosure [Line Items]
Total portfolio loans and leases	43,038	48,141
Acquired | Real estate loans | Home equity lines of credit
Loans and Leases Receivable Disclosure [Line Items]
Total portfolio loans and leases	12,732	15,023
Acquired | Real estate loans | Residential mortgage | 1st liens
Loans and Leases Receivable Disclosure [Line Items]
Total portfolio loans and leases	98,673	101,806
Acquired | Real estate loans | Residential mortgage | Junior liens
Loans and Leases Receivable Disclosure [Line Items]
Total portfolio loans and leases	1,561	1,940
Acquired | Real estate loans | Construction
Loans and Leases Receivable Disclosure [Line Items]
Total portfolio loans and leases	8,541	8,891
Acquired | Commercial & Industrial
Loans and Leases Receivable Disclosure [Line Items]
Total portfolio loans and leases	6,301	6,905
Acquired | Consumer
Loans and Leases Receivable Disclosure [Line Items]
Total portfolio loans and leases	90	2,328
Acquired | Leases
Loans and Leases Receivable Disclosure [Line Items]
Total portfolio loans and leases	$ 4,608	$ 8,111

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Loans and Leases - Net Investments in Leases (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Loans and Leases Receivable Disclosure [Line Items]
Minimum lease payments receivable	$ 183,281	$ 183,138
Unearned lease income	(23,528)	(24,454)
Initial direct costs and deferred fees	6,474	6,394
Total Leases	166,227	165,078
Originated
Loans and Leases Receivable Disclosure [Line Items]
Minimum lease payments receivable	178,407	174,385
Unearned lease income	(23,182)	(23,641)
Initial direct costs and deferred fees	6,394	6,223
Total Leases	161,619	156,967
Acquired
Loans and Leases Receivable Disclosure [Line Items]
Minimum lease payments receivable	4,874	8,753
Unearned lease income	(346)	(813)
Initial direct costs and deferred fees	80	171
Total Leases	$ 4,608	$ 8,111

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Loans and Leases - Non-performing Loans and Leases (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Loans and Leases Receivable Disclosure [Line Items]
Total Accruing Loans and Leases	$ 3,726,281	$ 3,693,562
Originated
Loans and Leases Receivable Disclosure [Line Items]
Total Accruing Loans and Leases	3,427,006	3,325,065
Acquired
Loans and Leases Receivable Disclosure [Line Items]
Total Accruing Loans and Leases	299,275	368,497
Nonperforming Loans and Leases
Loans and Leases Receivable Disclosure [Line Items]
Total Accruing Loans and Leases	8,418	10,648
Nonperforming Loans and Leases | Originated
Loans and Leases Receivable Disclosure [Line Items]
Total Accruing Loans and Leases	6,762	5,636
Nonperforming Loans and Leases | Acquired
Loans and Leases Receivable Disclosure [Line Items]
Total Accruing Loans and Leases	1,656	5,012
Real estate loans | CRE - nonowner-occupied | Nonperforming Loans and Leases
Loans and Leases Receivable Disclosure [Line Items]
Total Accruing Loans and Leases	245	199
Real estate loans | CRE - nonowner-occupied | Nonperforming Loans and Leases | Originated
Loans and Leases Receivable Disclosure [Line Items]
Total Accruing Loans and Leases	245	199
Real estate loans | CRE - nonowner-occupied | Nonperforming Loans and Leases | Acquired
Loans and Leases Receivable Disclosure [Line Items]
Total Accruing Loans and Leases	0	0
Real estate loans | CRE - owner-occupied | Nonperforming Loans and Leases
Loans and Leases Receivable Disclosure [Line Items]
Total Accruing Loans and Leases	4,046	4,159
Real estate loans | CRE - owner-occupied | Nonperforming Loans and Leases | Originated
Loans and Leases Receivable Disclosure [Line Items]
Total Accruing Loans and Leases	2,937	1,523
Real estate loans | CRE - owner-occupied | Nonperforming Loans and Leases | Acquired
Loans and Leases Receivable Disclosure [Line Items]
Total Accruing Loans and Leases	1,109	2,636
Real estate loans | Home equity lines of credit | Nonperforming Loans and Leases
Loans and Leases Receivable Disclosure [Line Items]
Total Accruing Loans and Leases	915	636
Real estate loans | Home equity lines of credit | Nonperforming Loans and Leases | Originated
Loans and Leases Receivable Disclosure [Line Items]
Total Accruing Loans and Leases	741	636
Real estate loans | Home equity lines of credit | Nonperforming Loans and Leases | Acquired
Loans and Leases Receivable Disclosure [Line Items]
Total Accruing Loans and Leases	174	0
Real estate loans | Residential mortgage | 1st liens | Nonperforming Loans and Leases
Loans and Leases Receivable Disclosure [Line Items]
Total Accruing Loans and Leases	912	2,447
Real estate loans | Residential mortgage | 1st liens | Nonperforming Loans and Leases | Originated
Loans and Leases Receivable Disclosure [Line Items]
Total Accruing Loans and Leases	899	630
Real estate loans | Residential mortgage | 1st liens | Nonperforming Loans and Leases | Acquired
Loans and Leases Receivable Disclosure [Line Items]
Total Accruing Loans and Leases	13	1,817
Real estate loans | Residential mortgage | Junior liens | Nonperforming Loans and Leases
Loans and Leases Receivable Disclosure [Line Items]
Total Accruing Loans and Leases	72	83
Real estate loans | Residential mortgage | Junior liens | Nonperforming Loans and Leases | Originated
Loans and Leases Receivable Disclosure [Line Items]
Total Accruing Loans and Leases	72	83
Real estate loans | Residential mortgage | Junior liens | Nonperforming Loans and Leases | Acquired
Loans and Leases Receivable Disclosure [Line Items]
Total Accruing Loans and Leases	0	0
Commercial & Industrial | Nonperforming Loans and Leases
Loans and Leases Receivable Disclosure [Line Items]
Total Accruing Loans and Leases	1,973	2,180
Commercial & Industrial | Nonperforming Loans and Leases | Originated
Loans and Leases Receivable Disclosure [Line Items]
Total Accruing Loans and Leases	1,642	1,799
Commercial & Industrial | Nonperforming Loans and Leases | Acquired
Loans and Leases Receivable Disclosure [Line Items]
Total Accruing Loans and Leases	331	381
Consumer | Nonperforming Loans and Leases
Loans and Leases Receivable Disclosure [Line Items]
Total Accruing Loans and Leases	36	61
Consumer | Nonperforming Loans and Leases | Originated
Loans and Leases Receivable Disclosure [Line Items]
Total Accruing Loans and Leases	36	19
Consumer | Nonperforming Loans and Leases | Acquired
Loans and Leases Receivable Disclosure [Line Items]
Total Accruing Loans and Leases	0	42
Leases | Nonperforming Loans and Leases
Loans and Leases Receivable Disclosure [Line Items]
Total Accruing Loans and Leases	219	883
Leases | Nonperforming Loans and Leases | Originated
Loans and Leases Receivable Disclosure [Line Items]
Total Accruing Loans and Leases	190	747
Leases | Nonperforming Loans and Leases | Acquired
Loans and Leases Receivable Disclosure [Line Items]
Total Accruing Loans and Leases	$ 29	$ 136

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Loans and Leases - Age Analysis of Past Due Loans and Leases (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	$ 10,022	$ 7,197
Loans and leases, current	3,703,725	3,671,468
Total Accruing Loans and Leases	3,713,747	3,678,665
Nonaccrual Loans and Leases	8,418	10,648
Total Loans and Leases	3,722,165	3,689,313
Originated
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	4,806	5,826
Loans and leases, current	3,411,322	3,309,354
Total Accruing Loans and Leases	3,416,128	3,315,180
Nonaccrual Loans and Leases	6,762	5,636
Total Loans and Leases	3,422,890	3,320,816
Acquired
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	5,216	1,371
Loans and leases, current	292,403	362,114
Total Accruing Loans and Leases	297,619	363,485
Nonaccrual Loans and Leases	1,656	5,012
Total Loans and Leases	299,275	368,497
Real estate loans
Financing Receivable, Past Due [Line Items]
Total Loans and Leases	3,054,647	3,034,767
Real estate loans | Originated
Financing Receivable, Past Due [Line Items]
Total Loans and Leases	2,766,371	2,683,614
Real estate loans | Acquired
Financing Receivable, Past Due [Line Items]
Total Loans and Leases	288,276	351,153
Real estate loans | CRE - nonowner-occupied
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	1,458	184
Loans and leases, current	1,374,201	1,336,784
Total Accruing Loans and Leases	1,375,659	1,336,968
Nonaccrual Loans and Leases	245	199
Total Loans and Leases	1,375,904	1,337,167
Real estate loans | CRE - nonowner-occupied | Originated
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	395	184
Loans and leases, current	1,251,533	1,161,432
Total Accruing Loans and Leases	1,251,928	1,161,616
Nonaccrual Loans and Leases	245	199
Total Loans and Leases	1,252,173	1,161,815
Real estate loans | CRE - nonowner-occupied | Acquired
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	1,063	0
Loans and leases, current	122,668	175,352
Total Accruing Loans and Leases	123,731	175,352
Nonaccrual Loans and Leases	0	0
Total Loans and Leases	123,731	175,352
Real estate loans | CRE - owner-occupied
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	1,496	2,462
Loans and leases, current	537,146	520,986
Total Accruing Loans and Leases	538,642	523,448
Nonaccrual Loans and Leases	4,046	4,159
Total Loans and Leases	542,688	527,607
Real estate loans | CRE - owner-occupied | Originated
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	1,378	2,462
Loans and leases, current	495,335	475,481
Total Accruing Loans and Leases	496,713	477,943
Nonaccrual Loans and Leases	2,937	1,523
Total Loans and Leases	499,650	479,466
Real estate loans | CRE - owner-occupied | Acquired
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	118	0
Loans and leases, current	41,811	45,505
Total Accruing Loans and Leases	41,929	45,505
Nonaccrual Loans and Leases	1,109	2,636
Total Loans and Leases	43,038	48,141
Real estate loans | Home equity lines of credit
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	236	719
Loans and leases, current	193,616	222,907
Total Accruing Loans and Leases	193,852	223,626
Nonaccrual Loans and Leases	915	636
Total Loans and Leases	194,767	224,262
Real estate loans | Home equity lines of credit | Originated
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	134	619
Loans and leases, current	181,160	207,984
Total Accruing Loans and Leases	181,294	208,603
Nonaccrual Loans and Leases	741	636
Total Loans and Leases	182,035	209,239
Real estate loans | Home equity lines of credit | Acquired
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	102	100
Loans and leases, current	12,456	14,923
Total Accruing Loans and Leases	12,558	15,023
Nonaccrual Loans and Leases	174	0
Total Loans and Leases	12,732	15,023
Real estate loans | Residential mortgage | 1st liens
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	4,979	2,027
Loans and leases, current	689,379	702,216
Total Accruing Loans and Leases	694,358	704,243
Nonaccrual Loans and Leases	912	2,447
Total Loans and Leases	695,270	706,690
Real estate loans | Residential mortgage | 1st liens | Originated
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	1,128	992
Loans and leases, current	594,570	603,262
Total Accruing Loans and Leases	595,698	604,254
Nonaccrual Loans and Leases	899	630
Total Loans and Leases	596,597	604,884
Real estate loans | Residential mortgage | 1st liens | Acquired
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	3,851	1,035
Loans and leases, current	94,809	98,954
Total Accruing Loans and Leases	98,660	99,989
Nonaccrual Loans and Leases	13	1,817
Total Loans and Leases	98,673	101,806
Real estate loans | Residential mortgage | Junior liens
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	0	116
Loans and leases, current	33,572	36,644
Total Accruing Loans and Leases	33,572	36,760
Nonaccrual Loans and Leases	72	83
Total Loans and Leases	33,644	36,843
Real estate loans | Residential mortgage | Junior liens | Originated
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	0	116
Loans and leases, current	32,011	34,704
Total Accruing Loans and Leases	32,011	34,820
Nonaccrual Loans and Leases	72	83
Total Loans and Leases	32,083	34,903
Real estate loans | Residential mortgage | Junior liens | Acquired
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	0	0
Loans and leases, current	1,561	1,940
Total Accruing Loans and Leases	1,561	1,940
Nonaccrual Loans and Leases	0	0
Total Loans and Leases	1,561	1,940
Real estate loans | Construction
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	0	0
Loans and leases, current	212,374	202,198
Total Accruing Loans and Leases	212,374	202,198
Nonaccrual Loans and Leases	0	0
Total Loans and Leases	212,374	202,198
Real estate loans | Construction | Originated
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	0	0
Loans and leases, current	203,833	193,307
Total Accruing Loans and Leases	203,833	193,307
Nonaccrual Loans and Leases	0	0
Total Loans and Leases	203,833	193,307
Real estate loans | Construction | Acquired
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	0	0
Loans and leases, current	8,541	8,891
Total Accruing Loans and Leases	8,541	8,891
Nonaccrual Loans and Leases	0	0
Total Loans and Leases	8,541	8,891
Commercial & Industrial
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	283	0
Loans and leases, current	455,273	430,047
Total Accruing Loans and Leases	455,556	430,047
Nonaccrual Loans and Leases	1,973	2,180
Total Loans and Leases	457,529	432,227
Commercial & Industrial | Originated
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	283	0
Loans and leases, current	449,303	423,523
Total Accruing Loans and Leases	449,586	423,523
Nonaccrual Loans and Leases	1,642	1,799
Total Loans and Leases	451,228	425,322
Commercial & Industrial | Acquired
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	0	0
Loans and leases, current	5,970	6,524
Total Accruing Loans and Leases	5,970	6,524
Nonaccrual Loans and Leases	331	381
Total Loans and Leases	6,301	6,905
Consumer
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	85	238
Loans and leases, current	43,641	56,942
Total Accruing Loans and Leases	43,726	57,180
Nonaccrual Loans and Leases	36	61
Total Loans and Leases	43,762	57,241
Consumer | Originated
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	85	106
Loans and leases, current	43,551	54,788
Total Accruing Loans and Leases	43,636	54,894
Nonaccrual Loans and Leases	36	19
Total Loans and Leases	43,672	54,913
Consumer | Acquired
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	0	132
Loans and leases, current	90	2,154
Total Accruing Loans and Leases	90	2,286
Nonaccrual Loans and Leases	0	42
Total Loans and Leases	90	2,328
Leases
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	1,485	1,451
Loans and leases, current	164,523	162,744
Total Accruing Loans and Leases	166,008	164,195
Nonaccrual Loans and Leases	219	883
Total Loans and Leases	166,227	165,078
Leases | Originated
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	1,403	1,347
Loans and leases, current	160,026	154,873
Total Accruing Loans and Leases	161,429	156,220
Nonaccrual Loans and Leases	190	747
Total Loans and Leases	161,619	156,967
Leases | Acquired
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	82	104
Loans and leases, current	4,497	7,871
Total Accruing Loans and Leases	4,579	7,975
Nonaccrual Loans and Leases	29	136
Total Loans and Leases	4,608	8,111
30 – 59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	7,931	5,710
30 – 59 Days Past Due | Originated
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	3,786	4,705
30 – 59 Days Past Due | Acquired
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	4,145	1,005
30 – 59 Days Past Due | Real estate loans | CRE - nonowner-occupied
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	538	184
30 – 59 Days Past Due | Real estate loans | CRE - nonowner-occupied | Originated
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	395	184
30 – 59 Days Past Due | Real estate loans | CRE - nonowner-occupied | Acquired
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	143	0
30 – 59 Days Past Due | Real estate loans | CRE - owner-occupied
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	995	2,462
30 – 59 Days Past Due | Real estate loans | CRE - owner-occupied | Originated
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	995	2,462
30 – 59 Days Past Due | Real estate loans | CRE - owner-occupied | Acquired
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	0	0
30 – 59 Days Past Due | Real estate loans | Home equity lines of credit
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	214	354
30 – 59 Days Past Due | Real estate loans | Home equity lines of credit | Originated
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	112	254
30 – 59 Days Past Due | Real estate loans | Home equity lines of credit | Acquired
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	102	100
30 – 59 Days Past Due | Real estate loans | Residential mortgage | 1st liens
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	4,826	1,639
30 – 59 Days Past Due | Real estate loans | Residential mortgage | 1st liens | Originated
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	1,007	890
30 – 59 Days Past Due | Real estate loans | Residential mortgage | 1st liens | Acquired
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	3,819	749
30 – 59 Days Past Due | Real estate loans | Residential mortgage | Junior liens
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	0	116
30 – 59 Days Past Due | Real estate loans | Residential mortgage | Junior liens | Originated
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	0	116
30 – 59 Days Past Due | Real estate loans | Residential mortgage | Junior liens | Acquired
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	0	0
30 – 59 Days Past Due | Real estate loans | Construction
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	0	0
30 – 59 Days Past Due | Real estate loans | Construction | Originated
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	0	0
30 – 59 Days Past Due | Real estate loans | Construction | Acquired
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	0	0
30 – 59 Days Past Due | Commercial & Industrial
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	12	0
30 – 59 Days Past Due | Commercial & Industrial | Originated
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	12	0
30 – 59 Days Past Due | Commercial & Industrial | Acquired
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	0	0
30 – 59 Days Past Due | Consumer
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	9	98
30 – 59 Days Past Due | Consumer | Originated
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	9	18
30 – 59 Days Past Due | Consumer | Acquired
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	0	80
30 – 59 Days Past Due | Leases
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	1,337	857
30 – 59 Days Past Due | Leases | Originated
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	1,256	781
30 – 59 Days Past Due | Leases | Acquired
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	81	76
60 – 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	2,091	1,487
60 – 89 Days Past Due | Originated
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	1,020	1,121
60 – 89 Days Past Due | Acquired
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	1,071	366
60 – 89 Days Past Due | Real estate loans | CRE - nonowner-occupied
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	920	0
60 – 89 Days Past Due | Real estate loans | CRE - nonowner-occupied | Originated
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	0	0
60 – 89 Days Past Due | Real estate loans | CRE - nonowner-occupied | Acquired
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	920	0
60 – 89 Days Past Due | Real estate loans | CRE - owner-occupied
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	501	0
60 – 89 Days Past Due | Real estate loans | CRE - owner-occupied | Originated
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	383	0
60 – 89 Days Past Due | Real estate loans | CRE - owner-occupied | Acquired
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	118	0
60 – 89 Days Past Due | Real estate loans | Home equity lines of credit
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	22	365
60 – 89 Days Past Due | Real estate loans | Home equity lines of credit | Originated
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	22	365
60 – 89 Days Past Due | Real estate loans | Home equity lines of credit | Acquired
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	0	0
60 – 89 Days Past Due | Real estate loans | Residential mortgage | 1st liens
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	153	388
60 – 89 Days Past Due | Real estate loans | Residential mortgage | 1st liens | Originated
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	121	102
60 – 89 Days Past Due | Real estate loans | Residential mortgage | 1st liens | Acquired
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	32	286
60 – 89 Days Past Due | Real estate loans | Residential mortgage | Junior liens
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	0	0
60 – 89 Days Past Due | Real estate loans | Residential mortgage | Junior liens | Originated
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	0	0
60 – 89 Days Past Due | Real estate loans | Residential mortgage | Junior liens | Acquired
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	0	0
60 – 89 Days Past Due | Real estate loans | Construction
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	0	0
60 – 89 Days Past Due | Real estate loans | Construction | Originated
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	0	0
60 – 89 Days Past Due | Real estate loans | Construction | Acquired
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	0	0
60 – 89 Days Past Due | Commercial & Industrial
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	271	0
60 – 89 Days Past Due | Commercial & Industrial | Originated
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	271	0
60 – 89 Days Past Due | Commercial & Industrial | Acquired
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	0	0
60 – 89 Days Past Due | Consumer
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	76	140
60 – 89 Days Past Due | Consumer | Originated
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	76	88
60 – 89 Days Past Due | Consumer | Acquired
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	0	52
60 – 89 Days Past Due | Leases
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	148	594
60 – 89 Days Past Due | Leases | Originated
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	147	566
60 – 89 Days Past Due | Leases | Acquired
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	1	28
Over 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	0	0
Over 89 Days Past Due | Originated
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	0	0
Over 89 Days Past Due | Acquired
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	0	0
Over 89 Days Past Due | Real estate loans | CRE - nonowner-occupied
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	0	0
Over 89 Days Past Due | Real estate loans | CRE - nonowner-occupied | Originated
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	0	0
Over 89 Days Past Due | Real estate loans | CRE - nonowner-occupied | Acquired
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	0	0
Over 89 Days Past Due | Real estate loans | CRE - owner-occupied
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	0	0
Over 89 Days Past Due | Real estate loans | CRE - owner-occupied | Originated
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	0	0
Over 89 Days Past Due | Real estate loans | CRE - owner-occupied | Acquired
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	0	0
Over 89 Days Past Due | Real estate loans | Home equity lines of credit
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	0	0
Over 89 Days Past Due | Real estate loans | Home equity lines of credit | Originated
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	0	0
Over 89 Days Past Due | Real estate loans | Home equity lines of credit | Acquired
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	0	0
Over 89 Days Past Due | Real estate loans | Residential mortgage | 1st liens
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	0	0
Over 89 Days Past Due | Real estate loans | Residential mortgage | 1st liens | Originated
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	0	0
Over 89 Days Past Due | Real estate loans | Residential mortgage | 1st liens | Acquired
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	0	0
Over 89 Days Past Due | Real estate loans | Residential mortgage | Junior liens
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	0	0
Over 89 Days Past Due | Real estate loans | Residential mortgage | Junior liens | Originated
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	0	0
Over 89 Days Past Due | Real estate loans | Residential mortgage | Junior liens | Acquired
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	0	0
Over 89 Days Past Due | Real estate loans | Construction
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	0	0
Over 89 Days Past Due | Real estate loans | Construction | Originated
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	0	0
Over 89 Days Past Due | Real estate loans | Construction | Acquired
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	0	0
Over 89 Days Past Due | Commercial & Industrial
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	0	0
Over 89 Days Past Due | Commercial & Industrial | Originated
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	0	0
Over 89 Days Past Due | Commercial & Industrial | Acquired
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	0	0
Over 89 Days Past Due | Consumer
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	0	0
Over 89 Days Past Due | Consumer | Originated
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	0	0
Over 89 Days Past Due | Consumer | Acquired
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	0	0
Over 89 Days Past Due | Leases
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	0	0
Over 89 Days Past Due | Leases | Originated
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	0	0
Over 89 Days Past Due | Leases | Acquired
Financing Receivable, Past Due [Line Items]
Loans and leases, past due	$ 0	$ 0

XML

Loans and Leases - Allowance for Loan and Leases Losses Activity (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance	$ 54,070	$ 20,616	$ 22,602	$ 19,426
Loans and leases charged-off	(4,051)	(1,379)	(8,439)	(4,222)
Recoveries collected	652	318	968	615
PCL on loans and leases	4,303	1,627	36,637	5,363
Balance	54,974	21,182	$ 54,974	21,182
Minimum
Financing Receivable, Allowance for Credit Loss [Line Items]
Payment deferral offering period			3 months
Maximum
Financing Receivable, Allowance for Credit Loss [Line Items]
Payment deferral offering period			6 months
Impact of CECL Adoption | Accounting Standards Update 2016-13
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance			$ 3,206
Real estate loans | CRE - nonowner-occupied
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance	13,329	6,308	7,960	5,856
Loans and leases charged-off	0	0	0	(1,515)
Recoveries collected	4	5	6	7
PCL on loans and leases	1,998	520	7,832	2,485
Balance	15,331	6,833	15,331	6,833
Real estate loans | CRE - nonowner-occupied | Impact of CECL Adoption | Accounting Standards Update 2016-13
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance			(467)
Real estate loans | CRE - owner-occupied
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance	4,192	2,740	2,825	2,454
Loans and leases charged-off	(1,234)	0	(1,233)	0
Recoveries collected	0	0	0	0
PCL on loans and leases	2,125	(80)	3,475	206
Balance	5,083	2,660	5,083	2,660
Real estate loans | CRE - owner-occupied | Impact of CECL Adoption | Accounting Standards Update 2016-13
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance			16
Real estate loans | Home equity lines of credit
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance	2,748	1,222	1,114	1,140
Loans and leases charged-off	0	(211)	(114)	(313)
Recoveries collected	4	83	4	84
PCL on loans and leases	(1,125)	158	669	341
Balance	1,627	1,252	1,627	1,252
Real estate loans | Home equity lines of credit | Impact of CECL Adoption | Accounting Standards Update 2016-13
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance			(46)
Real estate loans | Residential mortgage | 1st liens
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance	8,316	2,634	2,501	2,561
Loans and leases charged-off	(556)	(341)	(1,284)	(682)
Recoveries collected	136	2	137	15
PCL on loans and leases	302	349	4,436	750
Balance	8,198	2,644	8,198	2,644
Real estate loans | Residential mortgage | 1st liens | Impact of CECL Adoption | Accounting Standards Update 2016-13
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance			2,408
Real estate loans | Residential mortgage | Junior liens
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance	517	350	338	364
Loans and leases charged-off	0	(56)	0	(56)
Recoveries collected	0	4	0	4
PCL on loans and leases	4	45	104	31
Balance	521	343	521	343
Real estate loans | Residential mortgage | Junior liens | Impact of CECL Adoption | Accounting Standards Update 2016-13
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance			79
Real estate loans | Construction
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance	6,984	1,372	1,230	1,715
Loans and leases charged-off	0	0	0	0
Recoveries collected	1	1	2	2
PCL on loans and leases	(924)	(93)	5,188	(437)
Balance	6,061	1,280	6,061	1,280
Real estate loans | Construction | Impact of CECL Adoption | Accounting Standards Update 2016-13
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance			(359)
Commercial & Industrial
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance	8,734	3,507	3,835	3,166
Loans and leases charged-off	(522)	(20)	(1,149)	(217)
Recoveries collected	22	37	37	45
PCL on loans and leases	(246)	58	5,424	588
Balance	7,988	3,582	7,988	3,582
Commercial & Industrial | Impact of CECL Adoption | Accounting Standards Update 2016-13
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance			(159)
Consumer
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance	341	439	438	303
Loans and leases charged-off	(296)	(127)	(590)	(247)
Recoveries collected	57	7	90	25
PCL on loans and leases	338	20	362	258
Balance	440	339	440	339
Consumer | Impact of CECL Adoption | Accounting Standards Update 2016-13
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance			140
Leases
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance	8,909	2,044	2,361	1,867
Loans and leases charged-off	(1,443)	(624)	(4,069)	(1,192)
Recoveries collected	428	179	692	433
PCL on loans and leases	1,831	650	9,147	1,141
Balance	$ 9,725	$ 2,249	9,725	$ 2,249
Leases | Impact of CECL Adoption | Accounting Standards Update 2016-13
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance			$ 1,594

XML

Loans and Leases - Credit Risk Profile by Internally Assigned Grade (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Loans and Leases Receivable Disclosure [Line Items]
2020	$ 572,794
2019	971,564
2018	594,218
2017	352,784
2016	343,600
2015 and Prior	487,310
Revolving Lines of Credit	395,568
Revolving Lines of Credit Converted to Term Loans	4,327
Total loans and leases	3,722,165	$ 3,689,313
Real estate loans
Loans and Leases Receivable Disclosure [Line Items]
Total loans and leases	3,054,647	3,034,767
Real estate loans | CRE - nonowner-occupied
Loans and Leases Receivable Disclosure [Line Items]
2020	192,077
2019	488,752
2018	218,014
2017	128,790
2016	165,636
2015 and Prior	149,967
Revolving Lines of Credit	32,668
Revolving Lines of Credit Converted to Term Loans	0
Total loans and leases	1,375,904	1,337,167
Real estate loans | CRE - nonowner-occupied | Pass
Loans and Leases Receivable Disclosure [Line Items]
2020	171,485
2019	454,690
2018	192,252
2017	124,010
2016	120,715
2015 and Prior	140,138
Revolving Lines of Credit	32,668
Revolving Lines of Credit Converted to Term Loans	0
Total loans and leases	1,235,958
Real estate loans | CRE - nonowner-occupied | Pass - Watch
Loans and Leases Receivable Disclosure [Line Items]
2020	332
2019	676
2018	2,963
2017	0
2016	1,686
2015 and Prior	2,455
Revolving Lines of Credit	0
Revolving Lines of Credit Converted to Term Loans	0
Total loans and leases	8,112
Real estate loans | CRE - nonowner-occupied | Special Mention
Loans and Leases Receivable Disclosure [Line Items]
2020	17,817
2019	0
2018	10,931
2017	0
2016	0
2015 and Prior	0
Revolving Lines of Credit	0
Revolving Lines of Credit Converted to Term Loans	0
Total loans and leases	28,748
Real estate loans | CRE - nonowner-occupied | Substandard
Loans and Leases Receivable Disclosure [Line Items]
2020	2,443
2019	33,386
2018	11,868
2017	4,780
2016	43,235
2015 and Prior	7,374
Revolving Lines of Credit	0
Revolving Lines of Credit Converted to Term Loans	0
Total loans and leases	103,086
Real estate loans | CRE - owner-occupied
Loans and Leases Receivable Disclosure [Line Items]
2020	85,104
2019	120,645
2018	120,924
2017	87,888
2016	59,991
2015 and Prior	54,052
Revolving Lines of Credit	14,084
Revolving Lines of Credit Converted to Term Loans	0
Total loans and leases	542,688	527,607
Real estate loans | CRE - owner-occupied | Pass
Loans and Leases Receivable Disclosure [Line Items]
2020	73,670
2019	111,679
2018	109,629
2017	87,028
2016	51,683
2015 and Prior	50,568
Revolving Lines of Credit	13,430
Revolving Lines of Credit Converted to Term Loans	0
Total loans and leases	497,687
Real estate loans | CRE - owner-occupied | Pass - Watch
Loans and Leases Receivable Disclosure [Line Items]
2020	4,914
2019	1,786
2018	0
2017	0
2016	2,401
2015 and Prior	1,747
Revolving Lines of Credit	441
Revolving Lines of Credit Converted to Term Loans	0
Total loans and leases	11,289
Real estate loans | CRE - owner-occupied | Special Mention
Loans and Leases Receivable Disclosure [Line Items]
2020	3,367
2019	434
2018	3,698
2017	0
2016	0
2015 and Prior	879
Revolving Lines of Credit	50
Revolving Lines of Credit Converted to Term Loans	0
Total loans and leases	8,428
Real estate loans | CRE - owner-occupied | Substandard
Loans and Leases Receivable Disclosure [Line Items]
2020	3,153
2019	6,746
2018	7,597
2017	860
2016	5,907
2015 and Prior	858
Revolving Lines of Credit	163
Revolving Lines of Credit Converted to Term Loans	0
Total loans and leases	25,284
Real estate loans | Home equity lines of credit
Loans and Leases Receivable Disclosure [Line Items]
2020	929
2019	1,138
2018	527
2017	181
2016	276
2015 and Prior	3,129
Revolving Lines of Credit	184,260
Revolving Lines of Credit Converted to Term Loans	4,327
Total loans and leases	194,767	224,262
Real estate loans | Home equity lines of credit | Pass
Loans and Leases Receivable Disclosure [Line Items]
2020	98
2019	887
2018	332
2017	123
2016	276
2015 and Prior	2,777
Revolving Lines of Credit	184,201
Revolving Lines of Credit Converted to Term Loans	4,327
Total loans and leases	193,021
Real estate loans | Home equity lines of credit | Special Mention
Loans and Leases Receivable Disclosure [Line Items]
2020	0
2019	0
2018	0
2017	0
2016	0
2015 and Prior	0
Revolving Lines of Credit	0
Revolving Lines of Credit Converted to Term Loans	0
Total loans and leases	0
Real estate loans | Home equity lines of credit | Substandard
Loans and Leases Receivable Disclosure [Line Items]
2020	831
2019	251
2018	195
2017	58
2016	0
2015 and Prior	352
Revolving Lines of Credit	59
Revolving Lines of Credit Converted to Term Loans	0
Total loans and leases	1,746
Real estate loans | Residential mortgage | 1st liens
Loans and Leases Receivable Disclosure [Line Items]
2020	62,823
2019	135,410
2018	92,606
2017	87,698
2016	78,867
2015 and Prior	236,731
Revolving Lines of Credit	1,135
Revolving Lines of Credit Converted to Term Loans	0
Total loans and leases	695,270	706,690
Real estate loans | Residential mortgage | Junior liens
Loans and Leases Receivable Disclosure [Line Items]
2020	1,880
2019	5,056
2018	9,251
2017	4,371
2016	3,448
2015 and Prior	9,461
Revolving Lines of Credit	177
Revolving Lines of Credit Converted to Term Loans	0
Total loans and leases	33,644	36,843
Real estate loans | Residential mortgage | Pass | 1st liens
Loans and Leases Receivable Disclosure [Line Items]
2020	62,318
2019	135,324
2018	91,917
2017	87,672
2016	77,890
2015 and Prior	228,862
Revolving Lines of Credit	1,135
Revolving Lines of Credit Converted to Term Loans	0
Total loans and leases	685,118
Real estate loans | Residential mortgage | Pass | Junior liens
Loans and Leases Receivable Disclosure [Line Items]
2020	1,825
2019	5,056
2018	9,251
2017	4,371
2016	3,412
2015 and Prior	9,425
Revolving Lines of Credit	177
Revolving Lines of Credit Converted to Term Loans	0
Total loans and leases	33,517
Real estate loans | Residential mortgage | Pass - Watch | 1st liens
Loans and Leases Receivable Disclosure [Line Items]
2020	505
2019	0
2018	0
2017	0
2016	0
2015 and Prior	265
Revolving Lines of Credit	0
Revolving Lines of Credit Converted to Term Loans	0
Total loans and leases	770
Real estate loans | Residential mortgage | Special Mention | 1st liens
Loans and Leases Receivable Disclosure [Line Items]
2020	0
2019	0
2018	0
2017	0
2016	0
2015 and Prior	7,505
Revolving Lines of Credit	0
Revolving Lines of Credit Converted to Term Loans	0
Total loans and leases	7,505
Real estate loans | Residential mortgage | Substandard | 1st liens
Loans and Leases Receivable Disclosure [Line Items]
2020	0
2019	86
2018	689
2017	26
2016	977
2015 and Prior	99
Revolving Lines of Credit	0
Revolving Lines of Credit Converted to Term Loans	0
Total loans and leases	1,877
Real estate loans | Residential mortgage | Substandard | Junior liens
Loans and Leases Receivable Disclosure [Line Items]
2020	55
2019	0
2018	0
2017	0
2016	36
2015 and Prior	36
Revolving Lines of Credit	0
Revolving Lines of Credit Converted to Term Loans	0
Total loans and leases	127
Real estate loans | Construction
Loans and Leases Receivable Disclosure [Line Items]
2020	91,968
2019	66,421
2018	25,739
2017	10,134
2016	0
2015 and Prior	5,079
Revolving Lines of Credit	13,033
Revolving Lines of Credit Converted to Term Loans	0
Total loans and leases	212,374	202,198
Real estate loans | Construction | Pass
Loans and Leases Receivable Disclosure [Line Items]
2020	85,546
2019	66,421
2018	25,739
2017	10,134
2016	0
2015 and Prior	5,079
Revolving Lines of Credit	13,033
Revolving Lines of Credit Converted to Term Loans	0
Total loans and leases	205,952
Real estate loans | Construction | Pass - Watch
Loans and Leases Receivable Disclosure [Line Items]
2020	0
2019	0
2018	0
2017	0
2016	0
2015 and Prior	0
Revolving Lines of Credit	0
Revolving Lines of Credit Converted to Term Loans	0
Total loans and leases	0
Real estate loans | Construction | Substandard
Loans and Leases Receivable Disclosure [Line Items]
2020	6,422
2019	0
2018	0
2017	0
2016	0
2015 and Prior	0
Revolving Lines of Credit	0
Revolving Lines of Credit Converted to Term Loans	0
Total loans and leases	6,422
Commercial & Industrial
Loans and Leases Receivable Disclosure [Line Items]
2020	100,731
2019	79,660
2018	79,055
2017	20,872
2016	32,171
2015 and Prior	28,230
Revolving Lines of Credit	116,810
Revolving Lines of Credit Converted to Term Loans	0
Total loans and leases	457,529	432,227
Commercial & Industrial | Pass
Loans and Leases Receivable Disclosure [Line Items]
2020	87,861
2019	70,042
2018	70,867
2017	15,637
2016	30,559
2015 and Prior	23,068
Revolving Lines of Credit	104,645
Revolving Lines of Credit Converted to Term Loans	0
Total loans and leases	402,679
Commercial & Industrial | Pass - Watch
Loans and Leases Receivable Disclosure [Line Items]
2020	10,564
2019	7,656
2018	205
2017	3,492
2016	305
2015 and Prior	916
Revolving Lines of Credit	6,486
Revolving Lines of Credit Converted to Term Loans	0
Total loans and leases	29,624
Commercial & Industrial | Special Mention
Loans and Leases Receivable Disclosure [Line Items]
2020	532
2019	0
2018	4,685
2017	212
2016	0
2015 and Prior	1,127
Revolving Lines of Credit	3,934
Revolving Lines of Credit Converted to Term Loans	0
Total loans and leases	10,490
Commercial & Industrial | Substandard
Loans and Leases Receivable Disclosure [Line Items]
2020	1,774
2019	1,962
2018	3,298
2017	1,531
2016	1,307
2015 and Prior	3,119
Revolving Lines of Credit	1,745
Revolving Lines of Credit Converted to Term Loans	0
Total loans and leases	14,736
Consumer
Loans and Leases Receivable Disclosure [Line Items]
2020	2,308
2019	4,835
2018	2,560
2017	391
2016	32
2015 and Prior	235
Revolving Lines of Credit	33,401
Revolving Lines of Credit Converted to Term Loans	0
Total loans and leases	43,762	57,241
Consumer | Pass
Loans and Leases Receivable Disclosure [Line Items]
2020	1,154
2019	4,817
2018	2,554
2017	379
2016	32
2015 and Prior	235
Revolving Lines of Credit	33,401
Revolving Lines of Credit Converted to Term Loans	0
Total loans and leases	42,572
Consumer | Substandard
Loans and Leases Receivable Disclosure [Line Items]
2020	1,154
2019	18
2018	6
2017	12
2016	0
2015 and Prior	0
Revolving Lines of Credit	0
Revolving Lines of Credit Converted to Term Loans	0
Total loans and leases	1,190
Leases
Loans and Leases Receivable Disclosure [Line Items]
2020	34,974
2019	69,647
2018	45,542
2017	12,459
2016	3,179
2015 and Prior	426
Revolving Lines of Credit	0
Revolving Lines of Credit Converted to Term Loans	0
Total loans and leases	166,227	$ 165,078
Leases | Pass
Loans and Leases Receivable Disclosure [Line Items]
2020	34,974
2019	69,578
2018	45,476
2017	12,391
2016	3,163
2015 and Prior	426
Revolving Lines of Credit	0
Revolving Lines of Credit Converted to Term Loans	0
Total loans and leases	166,008
Leases | Substandard
Loans and Leases Receivable Disclosure [Line Items]
2020	0
2019	69
2018	66
2017	68
2016	16
2015 and Prior	0
Revolving Lines of Credit	0
Revolving Lines of Credit Converted to Term Loans	0
Total loans and leases	$ 219

XML

Loans and Leases - Amortized Cost Basis of Nonaccrual Loans and Leases (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Loans and Leases Receivable Disclosure [Line Items]
Nonaccrual loans and leases	$ 8,163	$ 9,746
Non-accrual loans and leases	255	902
Loans Past Due Over 89 Days Still Accruing	0	0
Interest receivable on nonaccrual loans	78
Real Estate Collateral
Loans and Leases Receivable Disclosure [Line Items]
Non-accrual loans and leases	6,190	7,524
Non-Real Estate Collateral
Loans and Leases Receivable Disclosure [Line Items]
Non-accrual loans and leases	2,228	3,124
Individually Evaluated ACL
Loans and Leases Receivable Disclosure [Line Items]
Non-accrual loans and leases	201	79
Real estate loans | CRE - nonowner-occupied
Loans and Leases Receivable Disclosure [Line Items]
Nonaccrual loans and leases	245	199
Non-accrual loans and leases	0	0
Loans Past Due Over 89 Days Still Accruing	0	0
Real estate loans | CRE - nonowner-occupied | Real Estate Collateral
Loans and Leases Receivable Disclosure [Line Items]
Non-accrual loans and leases	245	199
Real estate loans | CRE - nonowner-occupied | Non-Real Estate Collateral
Loans and Leases Receivable Disclosure [Line Items]
Non-accrual loans and leases	0	0
Real estate loans | CRE - nonowner-occupied | Individually Evaluated ACL
Loans and Leases Receivable Disclosure [Line Items]
Non-accrual loans and leases	0	0
Real estate loans | CRE - owner-occupied
Loans and Leases Receivable Disclosure [Line Items]
Nonaccrual loans and leases	4,046	4,159
Non-accrual loans and leases	0	0
Loans Past Due Over 89 Days Still Accruing	0	0
Real estate loans | CRE - owner-occupied | Real Estate Collateral
Loans and Leases Receivable Disclosure [Line Items]
Non-accrual loans and leases	4,046	4,159
Real estate loans | CRE - owner-occupied | Non-Real Estate Collateral
Loans and Leases Receivable Disclosure [Line Items]
Non-accrual loans and leases	0	0
Real estate loans | CRE - owner-occupied | Individually Evaluated ACL
Loans and Leases Receivable Disclosure [Line Items]
Non-accrual loans and leases	0	0
Real estate loans | Home equity lines of credit
Loans and Leases Receivable Disclosure [Line Items]
Nonaccrual loans and leases	915	636
Non-accrual loans and leases	0	0
Loans Past Due Over 89 Days Still Accruing	0	0
Real estate loans | Home equity lines of credit | Real Estate Collateral
Loans and Leases Receivable Disclosure [Line Items]
Non-accrual loans and leases	915	636
Real estate loans | Home equity lines of credit | Non-Real Estate Collateral
Loans and Leases Receivable Disclosure [Line Items]
Non-accrual loans and leases	0	0
Real estate loans | Home equity lines of credit | Individually Evaluated ACL
Loans and Leases Receivable Disclosure [Line Items]
Non-accrual loans and leases	0	0
Real estate loans | Residential mortgage | 1st liens
Loans and Leases Receivable Disclosure [Line Items]
Nonaccrual loans and leases	912	2,447
Non-accrual loans and leases	0	0
Loans Past Due Over 89 Days Still Accruing	0	0
Real estate loans | Residential mortgage | 1st liens | Real Estate Collateral
Loans and Leases Receivable Disclosure [Line Items]
Non-accrual loans and leases	912	2,447
Real estate loans | Residential mortgage | 1st liens | Non-Real Estate Collateral
Loans and Leases Receivable Disclosure [Line Items]
Non-accrual loans and leases	0	0
Real estate loans | Residential mortgage | 1st liens | Individually Evaluated ACL
Loans and Leases Receivable Disclosure [Line Items]
Non-accrual loans and leases	0	0
Real estate loans | Residential mortgage | Junior liens
Loans and Leases Receivable Disclosure [Line Items]
Nonaccrual loans and leases	72	83
Non-accrual loans and leases	0	0
Loans Past Due Over 89 Days Still Accruing	0	0
Real estate loans | Residential mortgage | Junior liens | Real Estate Collateral
Loans and Leases Receivable Disclosure [Line Items]
Non-accrual loans and leases	72	83
Real estate loans | Residential mortgage | Junior liens | Non-Real Estate Collateral
Loans and Leases Receivable Disclosure [Line Items]
Non-accrual loans and leases	0	0
Real estate loans | Residential mortgage | Junior liens | Individually Evaluated ACL
Loans and Leases Receivable Disclosure [Line Items]
Non-accrual loans and leases	0	0
Real estate loans | Construction
Loans and Leases Receivable Disclosure [Line Items]
Nonaccrual loans and leases	0	0
Non-accrual loans and leases	0	0
Loans Past Due Over 89 Days Still Accruing	0	0
Real estate loans | Construction | Real Estate Collateral
Loans and Leases Receivable Disclosure [Line Items]
Non-accrual loans and leases	0	0
Real estate loans | Construction | Non-Real Estate Collateral
Loans and Leases Receivable Disclosure [Line Items]
Non-accrual loans and leases	0	0
Real estate loans | Construction | Individually Evaluated ACL
Loans and Leases Receivable Disclosure [Line Items]
Non-accrual loans and leases	0	0
Commercial & Industrial
Loans and Leases Receivable Disclosure [Line Items]
Nonaccrual loans and leases	1,973	2,180
Non-accrual loans and leases	0	0
Loans Past Due Over 89 Days Still Accruing	0	0
Commercial & Industrial | Real Estate Collateral
Loans and Leases Receivable Disclosure [Line Items]
Non-accrual loans and leases	0	0
Commercial & Industrial | Non-Real Estate Collateral
Loans and Leases Receivable Disclosure [Line Items]
Non-accrual loans and leases	1,973	2,180
Commercial & Industrial | Individually Evaluated ACL
Loans and Leases Receivable Disclosure [Line Items]
Non-accrual loans and leases	0	0
Consumer
Loans and Leases Receivable Disclosure [Line Items]
Nonaccrual loans and leases	0	42
Non-accrual loans and leases	36	19
Loans Past Due Over 89 Days Still Accruing	0	0
Consumer | Real Estate Collateral
Loans and Leases Receivable Disclosure [Line Items]
Non-accrual loans and leases	0	0
Consumer | Non-Real Estate Collateral
Loans and Leases Receivable Disclosure [Line Items]
Non-accrual loans and leases	36	61
Consumer | Individually Evaluated ACL
Loans and Leases Receivable Disclosure [Line Items]
Non-accrual loans and leases	36	19
Leases
Loans and Leases Receivable Disclosure [Line Items]
Nonaccrual loans and leases	0	0
Non-accrual loans and leases	219	883
Loans Past Due Over 89 Days Still Accruing	0	0
Leases | Real Estate Collateral
Loans and Leases Receivable Disclosure [Line Items]
Non-accrual loans and leases	0	0
Leases | Non-Real Estate Collateral
Loans and Leases Receivable Disclosure [Line Items]
Non-accrual loans and leases	219	883
Leases | Individually Evaluated ACL
Loans and Leases Receivable Disclosure [Line Items]
Non-accrual loans and leases	$ 165	$ 60

XML

Loans and Leases - Troubled Debt Restructurings (Details) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2020 USD ($) contract	Jun. 30, 2020 USD ($) contract	Dec. 31, 2019 USD ($)
Financing Receivable, Troubled Debt Restructuring [Line Items]
Troubled debt restructurings | $	$ 11,805	$ 11,805	$ 8,089
Number of contracts	13	13
Pre-Modification Outstanding Recorded Investment | $	$ 5,578	$ 5,578
Post-Modification Outstanding Recorded Investment | $	$ 5,578	$ 5,578
Loan Term Extension
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of contracts	1	1
Interest Rate Change and Term Extension
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of contracts	0	0
Interest Rate Change and/or Interest-Only Period
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of contracts	0	0
Contractual Payment Reduction (Leases only)
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of contracts	6	6
Temporary Payment Deferral
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of contracts	6	6
Real estate loans | CRE - nonowner-occupied
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of contracts	2	2
Pre-Modification Outstanding Recorded Investment | $	$ 1,818	$ 1,818
Post-Modification Outstanding Recorded Investment | $	$ 1,818	$ 1,818
Real estate loans | Construction
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of contracts	4	4
Pre-Modification Outstanding Recorded Investment | $	$ 3,419	$ 3,419
Post-Modification Outstanding Recorded Investment | $	$ 3,419	$ 3,419
Real estate loans | Loan Term Extension | CRE - nonowner-occupied
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of contracts	0	0
Real estate loans | Loan Term Extension | Construction
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of contracts	0	0
Real estate loans | Interest Rate Change and Term Extension | CRE - nonowner-occupied
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of contracts	0	0
Real estate loans | Interest Rate Change and Term Extension | Construction
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of contracts	0	0
Real estate loans | Interest Rate Change and/or Interest-Only Period | CRE - nonowner-occupied
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of contracts	0	0
Real estate loans | Interest Rate Change and/or Interest-Only Period | Construction
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of contracts	0	0
Real estate loans | Contractual Payment Reduction (Leases only) | CRE - nonowner-occupied
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of contracts	0	0
Real estate loans | Contractual Payment Reduction (Leases only) | Construction
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of contracts	0	0
Real estate loans | Temporary Payment Deferral | CRE - nonowner-occupied
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of contracts	2	2
Real estate loans | Temporary Payment Deferral | Construction
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of contracts	4	4
Residential mortgage
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of contracts	1	1
Pre-Modification Outstanding Recorded Investment | $	$ 200	$ 200
Post-Modification Outstanding Recorded Investment | $	$ 200	200
Troubled debt restructuring, modified | $		$ 228
Residential mortgage | Loan Term Extension
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of contracts	1	1
Residential mortgage | Interest Rate Change and Term Extension
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of contracts	0	0
Residential mortgage | Interest Rate Change and/or Interest-Only Period
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of contracts	0	0
Residential mortgage | Contractual Payment Reduction (Leases only)
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of contracts	0	0
Residential mortgage | Temporary Payment Deferral
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of contracts	0	0
Leases
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of contracts	6	6
Pre-Modification Outstanding Recorded Investment | $	$ 141	$ 141
Post-Modification Outstanding Recorded Investment | $	$ 141	$ 141
Leases | Loan Term Extension
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of contracts	0	0
Leases | Interest Rate Change and Term Extension
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of contracts	0	0
Leases | Interest Rate Change and/or Interest-Only Period
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of contracts	0	0
Leases | Contractual Payment Reduction (Leases only)
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of contracts	6	6
Leases | Temporary Payment Deferral
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of contracts	0	0
Commercial & Industrial
Financing Receivable, Troubled Debt Restructuring [Line Items]
Troubled debt restructuring, modified | $		$ 477
Nonperforming Loans and Leases
Financing Receivable, Troubled Debt Restructuring [Line Items]
Troubled debt restructurings | $	$ 1,792	1,792	3,018
Performing Financial Instruments
Financing Receivable, Troubled Debt Restructuring [Line Items]
Troubled debt restructurings | $	$ 10,013	$ 10,013	$ 5,071

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Mortgage Servicing Rights - Mortgage Servicing Rights Activity (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Servicing Asset at Fair Value, Amount [Roll Forward]
Balance, beginning of period			$ 4,450
Balance, end of period	$ 3,440		3,440
Fair value	3,400		3,400		$ 4,800
Residential mortgage
Servicing Asset at Fair Value, Amount [Roll Forward]
Balance, beginning of period	4,115	$ 4,910	4,450	$ 5,047
Additions	0	0	0	0
Amortization	(453)	(156)	(557)	(276)
Impairment	(222)	(10)	(453)	(27)
Balance, end of period	3,440	4,744	3,440	4,744
Fair value	3,440	5,175	3,440	5,175	$ 4,838
Residential mortgage loans serviced for others	$ 445,233	$ 545,743	$ 445,233	$ 545,743

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Mortgage Servicing Rights - Narrative (Details) - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Transfers and Servicing [Abstract]
Sensitivity percent, adverse change in assumption, low	10.00%	10.00%
Sensitivity percent, adverse change in assumption, high	20.00%	20.00%
Fair value	$ 3.4	$ 4.8

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Mortgage Servicing Rights - Key Economic Assumptions and Sensitivity of Current Fair Value of MSRs (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2020	Dec. 31, 2019	Jun. 30, 2019
Servicing Assets at Fair Value [Line Items]
Fair value	$ 3,400	$ 4,800
Residential mortgage
Servicing Assets at Fair Value [Line Items]
Fair value	$ 3,440	$ 4,838	$ 5,175
Weighted average life (in years)	4 years 8 months 12 days	6 years
Prepayment speeds (constant prepayment rate)	14.40%	10.50%
10% adverse change	$ (151)	$ (149)
20% adverse change	$ (292)	$ (297)
Discount rate (as a percent)	9.56%	9.55%
10% adverse change	$ (88)	$ (166)
20% adverse change	$ (172)	$ (321)

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Goodwill and Intangibles Assets - Goodwill and Intangible Assets Rollforward (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Goodwill [Roll Forward]
Balance December 31, 2019			$ 184,012
Additions			0
Balance June 30, 2020	$ 184,012		184,012
Finite-lived Intangible Assets [Roll Forward]
Additions			0
Intangible assets amortization	(910)	$ (956)	(1,828)	$ (1,894)
Indefinite-lived Intangible Assets [Roll Forward]
Total Intangible Assets			19,131
Additions			0
Intangible assets amortization	(910)	$ (956)	(1,828)	$ (1,894)
Total Intangible Assets	17,303		17,303
Total Goodwill and Intangible Assets, beginning balance			203,143
Intangible Assets (Including Goodwill) Acquired			0
Intangible assets amortization			(1,828)
Total Goodwill and Intangible Assets, ending balance	201,315		201,315
Domain Name
Indefinite-lived Intangible Assets [Roll Forward]
Indefinite-lived intangible assets, beginning of period			151
Indefinite-lived intangible assets acquired			0
Indefinite-lived intangible assets, end of period	151		151
Core deposit intangible
Finite-lived Intangible Assets [Roll Forward]
Balance December 31, 2019			4,598
Additions			0
Intangible assets amortization			(584)
Balance June 30, 2020	4,014		$ 4,014
Intangible asset amortization period (Year)			10 years
Indefinite-lived Intangible Assets [Roll Forward]
Additions			$ 0
Intangible assets amortization			(584)
Customer relationships
Finite-lived Intangible Assets [Roll Forward]
Balance December 31, 2019			11,820
Additions			0
Intangible assets amortization			(906)
Balance June 30, 2020	10,914		10,914
Indefinite-lived Intangible Assets [Roll Forward]
Additions			0
Intangible assets amortization			$ (906)
Customer relationships | Minimum
Finite-lived Intangible Assets [Roll Forward]
Intangible asset amortization period (Year)			5 years
Customer relationships | Maximum
Finite-lived Intangible Assets [Roll Forward]
Intangible asset amortization period (Year)			20 years
Non-compete agreements
Finite-lived Intangible Assets [Roll Forward]
Balance December 31, 2019			$ 911
Additions			0
Intangible assets amortization			(94)
Balance June 30, 2020	817		817
Indefinite-lived Intangible Assets [Roll Forward]
Additions			0
Intangible assets amortization			$ (94)
Non-compete agreements | Minimum
Finite-lived Intangible Assets [Roll Forward]
Intangible asset amortization period (Year)			5 years
Non-compete agreements | Maximum
Finite-lived Intangible Assets [Roll Forward]
Intangible asset amortization period (Year)			10 years
Trade name
Finite-lived Intangible Assets [Roll Forward]
Balance December 31, 2019			$ 1,651
Additions			0
Intangible assets amortization			(244)
Balance June 30, 2020	1,407		1,407
Indefinite-lived Intangible Assets [Roll Forward]
Additions			0
Intangible assets amortization			$ (244)
Trade name | Minimum
Finite-lived Intangible Assets [Roll Forward]
Intangible asset amortization period (Year)			3 years
Trade name | Maximum
Finite-lived Intangible Assets [Roll Forward]
Intangible asset amortization period (Year)			5 years
Goodwill – Wealth
Goodwill [Roll Forward]
Balance December 31, 2019			$ 20,412
Additions			0
Balance June 30, 2020	20,412		20,412
Goodwill – Banking
Goodwill [Roll Forward]
Balance December 31, 2019			156,991
Additions			0
Balance June 30, 2020	156,991		156,991
Goodwill – Insurance
Goodwill [Roll Forward]
Balance December 31, 2019			6,609
Additions			0
Balance June 30, 2020	$ 6,609		$ 6,609

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Goodwill and Intangibles Assets - Narrative (Details) - USD ($)		5 Months Ended
	Oct. 31, 2019	Jun. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill impairment	$ 0
Impairment of intangibles		$ 0

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Deposits (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Deposits [Abstract]
Interest-bearing demand	$ 910,441	$ 944,915
Money market	1,239,523	1,106,478
Savings	249,636	220,450
Retail time deposits	400,186	405,123
Wholesale non-maturity deposits	146,463	177,865
Wholesale time deposits	79,903	89,241
Total interest-bearing deposits	3,026,152	2,944,072
Noninterest-bearing deposits	1,217,496	898,173
Total deposits	$ 4,243,648	$ 3,842,245

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Short-Term Borrowings and Long-Term FHLB Advances - Short-term Borrowings (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019	Jun. 30, 2019
Short-term Debt [Line Items]
Short-term borrowings	$ 28,891	$ 493,219	$ 207,828
Repurchase agreements – commercial customers
Short-term Debt [Line Items]
Short-term borrowings	28,891	10,819
Short-term FHLB advances
Short-term Debt [Line Items]
Short-term borrowings	$ 0	$ 482,400

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Short-Term Borrowings and Long-Term FHLB Advances - Information Concerning Short-term Borrowings (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Long-term Federal Home Loan Bank Advances [Abstract]
Balance at period-end	$ 28,891	$ 207,828	$ 28,891	$ 207,828	$ 493,219
Maximum amount outstanding at any month end	174,431	207,828	174,431	207,828
Average balance outstanding during the period	$ 136,816	$ 68,529	$ 138,700	$ 112,844
Weighted-average interest rate:
As of the period-end (as a percent)	0.10%	2.33%	0.10%	2.33%
Paid during the period (as a percent)	0.68%	2.09%	0.99%	2.32%

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Short-Term Borrowings and Long-Term FHLB Advances - Narrative (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Federal Home Loan Bank, Advances [Line Items]
Long-term FHLB advances	$ 44,800	$ 52,300
Federal Home Loan Bank stock	4,506	$ 23,744
Federal Home Loan Bank maximum borrowing capacity	1,830,000
Federal Home Loan Bank, advances, amount available	1,780,000
Overnight federal funds
Federal Home Loan Bank, Advances [Line Items]
Federal Home Loan Bank, advances, amount available	74,000
Federal Reserve Discount Window
Federal Home Loan Bank, Advances [Line Items]
Federal Home Loan Bank, advances, amount available	$ 166,800

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Short-Term Borrowings and Long-Term FHLB Advances - Maturity of FHLB Advances and Other Borrowings (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Federal Home Loan Bank, Advances [Line Items]
Total	$ 44,800	$ 52,300
Short-term FHLB advances
Federal Home Loan Bank, Advances [Line Items]
Within one year	4,861	12,363
Over one year through five years	39,976	39,906
Total	$ 44,837	$ 52,269

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Short-Term Borrowings and Long-Term FHLB Advances - Rate and Maturity Information on Federal Home Loan Bank Advances and Other Borrowings (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Federal Home Loan Bank, Advances [Line Items]
Other long-term debt	$ 44,800	$ 52,300
Bullet maturity – fixed rate | Fixed Rate
Federal Home Loan Bank, Advances [Line Items]
Other long-term debt	$ 44,837	$ 52,269
Bullet maturity – fixed rate | Fixed Rate | Weighted average rate
Federal Home Loan Bank, Advances [Line Items]
Federal Home Loan Bank, advances, interest rate at period end	1.73%
Bullet maturity – fixed rate | Fixed Rate | Minimum
Federal Home Loan Bank, Advances [Line Items]
Federal Home Loan Bank, advances, interest rate at period end	1.40%
Bullet maturity – fixed rate | Fixed Rate | Maximum
Federal Home Loan Bank, Advances [Line Items]
Federal Home Loan Bank, advances, interest rate at period end	2.13%

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Subordinated Notes - Narrative (Details) - Subordinated Debt - USD ($)	Dec. 13, 2017	Aug. 06, 2015
Subordinated notes – due 2027
Debt Instrument [Line Items]
Debt issued	$ 70,000,000.0
Subordinated notes – due 2025
Debt Instrument [Line Items]
Debt issued		$ 30,000,000.0

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Subordinated Notes - Subordinated Notes, Including Debt Issuance Costs (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Subordinated debt	$ 98,794	$ 98,705
Subordinated notes – due 2027
Debt Instrument [Line Items]
Subordinated debt	$ 69,071	$ 69,009
Stated interest rate	4.25%	4.25%
Subordinated notes – due 2025
Debt Instrument [Line Items]
Subordinated debt	$ 29,723	$ 29,696
Stated interest rate	4.75%	4.75%
Subordinated Debt | Subordinated notes – due 2027
Debt Instrument [Line Items]
Stated interest rate	4.25%
Subordinated Debt | Subordinated notes – due 2025
Debt Instrument [Line Items]
Stated interest rate	4.75%
Subordinated Debt | LIBOR | Subordinated notes – due 2027
Debt Instrument [Line Items]
Basis spread on variable rate	2.05%
Subordinated Debt | LIBOR | Subordinated notes – due 2025
Debt Instrument [Line Items]
Basis spread on variable rate	3.068%

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Junior Subordinated Debentures (Details) - USD ($)	6 Months Ended
	Jun. 30, 2020	Dec. 31, 2019	Dec. 15, 2017
Investment Holdings [Line Items]
Common securities of Trust I and Trust II owned	$ 17,055,000	$ 16,683,000
Royal Bancshares Capital Trust I and II
Investment Holdings [Line Items]
Common securities of Trust I and Trust II owned			$ 774,000
Royal Bancshares Capital Trust II
Investment Holdings [Line Items]
Common securities of Trust I and Trust II owned	387,000
Capital securities issued, amount	12,500,000
Common securities issued, amount	387,000
Royal Bancshares Capital Trust I
Investment Holdings [Line Items]
Common securities of Trust I and Trust II owned	387,000
Capital securities issued, amount	12,500,000
Common securities issued, amount	$ 387,000
Junior Subordinated Debentures, RBPI Merger | Junior Subordinated Debt
Investment Holdings [Line Items]
Coupon rate (as a percent)	2.46%
Junior Subordinated Debentures, RBPI Merger | Junior Subordinated Debt | LIBOR
Investment Holdings [Line Items]
Basis spread on variable rate	2.15%
Royal Bancshares of Pennsylvania, Inc.
Investment Holdings [Line Items]
Business combination, junior subordinated debentures assumed			21,400,000
Royal Bancshares of Pennsylvania, Inc. | Royal Bancshares Capital Trust II
Investment Holdings [Line Items]
Business combination, junior subordinated debentures assumed			10,700,000
Royal Bancshares of Pennsylvania, Inc. | Royal Bancshares Capital Trust I
Investment Holdings [Line Items]
Business combination, junior subordinated debentures assumed			$ 10,700,000

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Operating Leases - Narrative (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Lessee, Lease, Description [Line Items]
Operating lease right-of-use assets	$ 39,348	$ 40,961
Operating lease liabilities	$ 43,693	$ 45,258
Weighted average remaining lease term	13 years 11 months 8 days
Weighted average discount rate (as a percent)	3.58%
Minimum
Lessee, Lease, Description [Line Items]
Operating lease term	3 months
Maximum
Lessee, Lease, Description [Line Items]
Operating lease term	22 years

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Operating Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Leases [Abstract]
Operating lease expense	$ 1,198	$ 1,333	$ 2,396	$ 2,663
Short term lease expense	14	14	29	29
Variable lease expense	308	392	665	810
Sublease income	(8)	(7)	(17)	(16)
Total lease expense	$ 1,512	$ 1,732	$ 3,073	$ 3,486

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Operating Leases - Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 2,348	$ 2,561
ROU assets obtained in exchange for lease liabilities	$ 0	$ 44,944

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Operating Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Leases [Abstract]
2020	$ 2,357
2021	4,479
2022	4,200
2023	4,047
2024	4,076
2025 and thereafter	37,308
Total lease payments	56,467
Less: imputed interest	12,774
Operating lease liabilities	$ 43,693	$ 45,258

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Derivative Instruments and Hedging Activities - Schedule of Derivative Instruments (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Derivative Asset [Abstract]
Notional Amount	$ 1,013,669	$ 810,458
Fair Value	143,733	47,717
Derivative Liability [Abstract]
Notional Amount	988,426	794,441
Fair Value	143,485	47,643
Customer derivatives – interest rate swaps
Derivative Asset [Abstract]
Notional Amount	970,146	790,209
Fair Value	143,339	47,627
Derivative Liability [Abstract]
Notional Amount	970,146	790,209
Fair Value	143,339	47,627
FX forwards
Derivative Asset [Abstract]
Notional Amount	3,528
Fair Value	36
Derivative Liability [Abstract]
Notional Amount	4,116
Fair Value	107
RPAs sold
Derivative Asset [Abstract]
Notional Amount	0	0
Fair Value	0	0
Derivative Liability [Abstract]
Notional Amount	14,164	4,232
Fair Value	39	16
RPAs purchased
Derivative Asset [Abstract]
Notional Amount	39,995	20,249
Fair Value	358	90
Derivative Liability [Abstract]
Notional Amount	0	0
Fair Value	$ 0	$ 0

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Derivative Instruments and Hedging Activities - Narrative (Details) - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative liability held as collateral	$ 157.5	$ 63.8
Fair value of net derivatives	$ 143.3	$ 46.7

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Accounting for Uncertainty in Income Taxes (Details) - USD ($)	Jun. 30, 2020	Jun. 30, 2019
Income Tax Disclosure [Abstract]
Accrued interest and penalties	$ 0	$ 0

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Shareholders' Equity (Details) - USD ($)		3 Months Ended	6 Months Ended
	Jul. 20, 2020	Jun. 30, 2020	Jun. 30, 2020	Jan. 31, 2020	Dec. 31, 2019	Apr. 18, 2019
Class of Stock [Line Items]
Dividends paid (in dollars per share)		$ 0.26
Total dividends			$ 5,300,000
Common stock, outstanding (in shares)		19,927,893	19,927,893	20,251,459	20,126,296
Maximum investment under stock purchase and dividend reinvestment plan			$ 120,000
Shares issued pursuant to exercise of stock options (in shares)		0	338
Stock issued, increase in shareholders' equity			$ 5,000
Stock repurchase program, number of shares authorized to be repurchased (in shares)						1,000,000
Stock repurchase program, authorized amount						$ 45,000,000
The 2019 Program
Class of Stock [Line Items]
Shares repurchased during period (in shares)		207,201
Shares repurchased during period, price (in dollars per share)		$ 34.99
Shares remaining authorized for repurchase (in shares)		710,032	710,032
RSU's and PSU's
Class of Stock [Line Items]
Share based compensation expense		$ 624,000	$ 1,500,000
Maximum
Class of Stock [Line Items]
Shelf registration, shares registered (in shares)		1,500,000	1,500,000
Maximum | The 2019 Program
Class of Stock [Line Items]
Stock repurchase program, authorized amount		$ 34,800,000	$ 34,800,000
Subsequent Event
Class of Stock [Line Items]
Dividends declared per share (in dollars per share)	$ 0.27

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Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 593,179	$ 575,107	$ 612,227	$ 564,704
Other comprehensive income (loss)	150	4,978	6,832	9,213
Ending balance	603,674	590,155	603,674	590,155
Net unrealized gain on investment securities available for sale
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	10,569	(2,010)	3,910	(6,229)
Other comprehensive income (loss)	127	4,962	6,786	9,181
Ending balance	10,696	2,952	10,696	2,952
Unfunded pension liability
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(1,700)	(1,268)	(1,723)	(1,284)
Other comprehensive income (loss)	23	16	46	32
Ending balance	(1,677)	(1,252)	(1,677)	(1,252)
AOCI Attributable to Parent
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	8,869	(3,278)	2,187	(7,513)
Other comprehensive income (loss)	150	4,978	6,832	9,213
Ending balance	$ 9,019	$ 1,700	$ 9,019	$ 1,700

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Accumulated Other Comprehensive Income (Loss) - Amounts Reclassified From Each Component of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Other operating expenses	$ 5,060	$ 4,548	$ 11,346	$ 9,162
Income tax expense	4,010	4,239	1,053	7,003
Net income	15,035	15,785	3,872	26,462
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | Unfunded pension liability
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Other operating expenses	17	13	35	24
Income tax expense	(3)	(3)	(7)	(5)
Net income	$ 14	$ 10	$ 28	$ 19

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Earnings per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Earnings Per Share [Abstract]
Net income attributable to Bryn Mawr Bank Corporation	$ 15,035	$ 15,785	$ 3,872	$ 26,462
Denominator for basic earnings per share – weighted average shares outstanding (in shares)	19,926,737	20,144,651	19,989,948	20,156,509
Effect of dilutive common shares (in shares)	81,482	99,758	87,211	99,960
Denominator for diluted earnings per share – adjusted weighted average shares outstanding (in shares)	20,008,219	20,244,409	20,077,159	20,256,469
Basic earnings per share (in dollars per share)	$ 0.75	$ 0.78	$ 0.19	$ 1.31
Diluted earnings per share (in dollars per share)	$ 0.75	$ 0.78	$ 0.19	$ 1.31
Antidilutive shares excluded from computation of average dilutive earnings per share (in shares)	76,038	14,441	71,260	30,506

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Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Disaggregation of Revenue [Line Items]
Capital markets revenue	$ 2,975	$ 1,489	$ 5,336	$ 3,708
Loan servicing and other fees	452	553	913	1,162
Net gain on sale of loans	3,134	752	3,916	1,071
Net gain (loss) on sale of other real estate owned ("OREO")	0	0	148	(24)
Dividends on FHLB and FRB stock	243	316	687	727
Other operating income	2,787	3,052	3,344	5,899
Total noninterest income	20,566	20,221	38,866	39,474
Fees for wealth management services
Disaggregation of Revenue [Line Items]
Revenue	9,069	11,510	20,237	21,902
Insurance commissions
Disaggregation of Revenue [Line Items]
Revenue	1,303	1,697	2,836	3,369
Service charges on deposit accounts
Disaggregation of Revenue [Line Items]
Revenue	603	852	1,449	1,660
Merchant interchange fees, safe deposit box rentals, and rent income
Disaggregation of Revenue [Line Items]
Revenue	733	525	1,400	1,000
Banking
Disaggregation of Revenue [Line Items]
Capital markets revenue	2,975	1,489	5,336	3,708
Loan servicing and other fees	452	553	913	1,162
Net gain on sale of loans	3,134	752	3,916	1,071
Net gain (loss) on sale of other real estate owned ("OREO")			148	(24)
Dividends on FHLB and FRB stock	243	316	687	727
Other operating income	2,699	3,026	3,243	5,852
Total noninterest income	10,106	6,988	15,692	14,156
Banking | Fees for wealth management services
Disaggregation of Revenue [Line Items]
Revenue	0	0	0	0
Banking | Insurance commissions
Disaggregation of Revenue [Line Items]
Revenue	0	0	0	0
Banking | Service charges on deposit accounts
Disaggregation of Revenue [Line Items]
Revenue	603	852	1,449	1,660
Wealth Management
Disaggregation of Revenue [Line Items]
Capital markets revenue	0	0	0	0
Loan servicing and other fees	0	0	0	0
Net gain on sale of loans	0	0	0	0
Net gain (loss) on sale of other real estate owned ("OREO")			0	0
Dividends on FHLB and FRB stock	0	0	0	0
Other operating income	88	26	101	47
Total noninterest income	10,460	13,233	23,174	25,318
Wealth Management | Fees for wealth management services
Disaggregation of Revenue [Line Items]
Revenue	9,069	11,510	20,237	21,902
Wealth Management | Insurance commissions
Disaggregation of Revenue [Line Items]
Revenue	1,303	1,697	2,836	3,369
Wealth Management | Service charges on deposit accounts
Disaggregation of Revenue [Line Items]
Revenue	$ 0	$ 0	$ 0	$ 0

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Stock-Based Compensation - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2020	Apr. 30, 2015	Apr. 29, 2015	Apr. 28, 2010	Apr. 25, 2007
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance shares, minimum target (as a percent)		0.00%
Performance shares, maximum target (as a percent)		150.00%
Number of unvested options (in shares)	0	0
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation expense	$ 471	$ 900
Unrecognized compensation costs	2,800	$ 2,800
Unrecognized compensation costs, period of recognition		2 years
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation expense	153	$ 600
Unrecognized compensation costs	$ 2,300	$ 2,300
Unrecognized compensation costs, period of recognition		1 year 9 months 18 days
The 2007 Long-Term Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant (in shares)						428,996
The 2010 Long-Term Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant (in shares)			945,002		445,002
Increase in number of shares available for grant (in shares)				500,000

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Stock-Based Compensation - Schedule of Stock Option Activity (Details) - $ / shares	3 Months Ended	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2020
Shares
Options outstanding (in shares)	563	901
Forfeited (in shares)	0	0
Expired (in shares)	0	0
Exercised (in shares)	0	(338)
Options outstanding (in shares)	563	563
Weighted Average Exercise Price
Options outstanding, weighted average exercise price (in dollars per share)	$ 21.32	$ 19.33
Forfeited, weighted average exercise price (in dollars per share)	0	0
Expired, weighted average exercise price (in dollars per share)	0	0
Exercised, weighted average exercise price (in dollars per share)	0	16.02
Options outstanding, weighted average exercise price (in dollars per share)	21.32	21.32
Weighted Average Grant Date Fair Value
Options outstanding, weighted average grant date fair value (in dollars per share)	19.09	16.78
Forfeited, weighted average grant date fair value (in dollars per share)	0	0
Expired, weighted average grant date fair value (in dollars per share)	0	0
Exercised, weighted average grant date fair value (in dollars per share)	0	12.93
Options outstanding, weighted average grant date fair value (in dollars per share)	$ 19.09	$ 19.09

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Stock-Based Compensation - Proceeds, Related Tax Benefits Realized from Options Exercised and Intrinsic Value of Options Exercised (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Share-based Payment Arrangement [Abstract]
Proceeds from exercise of stock options	$ 0	$ 82	$ 5	$ 622
Related tax benefit recognized	0	18	2	155
Net proceeds of options exercised	0	100	7	777
Intrinsic value of options exercised	$ 0	$ 86	$ 8	$ 738

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Stock-Based Compensation - Options Outstanding and Exercisable (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019
Share-based Payment Arrangement [Abstract]
Options outstanding (in shares)	563	563	901
Weighted average exercise price, options outstanding (in dollars per share)	$ 21.32	$ 21.32	$ 19.33
Aggregate intrinsic value, options outstanding	$ 4
Weighted average contractual term, options outstanding (Year)	3 years 7 months 6 days
Exercisable options (in shares)	563
Weighted average exercise price, exercisable options (in dollars per share)	$ 21.32
Aggregate intrinsic value, exercisable options	$ 4
Weighted average contractual term, exercisable options (Year)	3 years 7 months 6 days

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Stock-Based Compensation - Unvested Restricted Stock Units Awards (Details) - Restricted Stock Units (RSUs) - $ / shares	3 Months Ended	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2020
Number of Shares
Balance (in shares)	136,725	115,466
Granted (in shares)	0	26,818
Vested (in shares)	(6,799)	(11,772)
Forfeited (in shares)	0	(586)
Balance (in shares)	129,926	129,926
Weighted Average Grant Date Fair Value
Balance, weighted average grant date fair value (in dollars per share)	$ 38.02	$ 38.57
Granted, weighted average grant date fair value (in dollars per share)	0	35.90
Vested, weighted average grant date fair value (in dollars per share)	39.82	39.73
Forfeited, weighted average grant date fair value (in dollars per share)	0	35.74
Balance, weighted average grant date fair value (in dollars per share)	$ 37.92	$ 37.92

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Stock-Based Compensation - Unvested Performance Stock Awards (Details) - Performance Stock Awards - $ / shares	3 Months Ended	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2020
Number of Shares
Balance (in shares)	189,808	136,271
Granted (in shares)	0	53,685
Vested (in shares)	0	0
Forfeited (in shares)	0	(148)
Balance (in shares)	189,808	189,808
Weighted Average Grant Date Fair Value
Balance, weighted average grant date fair value (in dollars per share)	$ 37.31	$ 37.87
Granted, weighted average grant date fair value (in dollars per share)	0	35.90
Vested, weighted average grant date fair value (in dollars per share)	0	0
Forfeited, weighted average grant date fair value (in dollars per share)	0	40.35
Balance, weighted average grant date fair value (in dollars per share)	$ 37.31	$ 37.31

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Fair Value Measurement - Schedule of Assets Measured on Recurring and Non-recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	$ 530,581	$ 1,005,984
Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	530,581	1,005,984
Derivatives	143,733	47,717
Total financial assets	682,115	1,062,322
Fair Value, Measurements, Recurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	100	500,101
Derivatives	0	0
Total financial assets	7,901	508,722
Fair Value, Measurements, Recurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	530,481	505,883
Derivatives	143,733	47,717
Total financial assets	674,214	553,600
Fair Value, Measurements, Recurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	0	0
Derivatives	0	0
Total financial assets	0	0
Fair Value, Measurements, Recurring | U.S. Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	100	500,101
Fair Value, Measurements, Recurring | U.S. Treasury securities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	100	500,101
Fair Value, Measurements, Recurring | U.S. Treasury securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	0	0
Fair Value, Measurements, Recurring | U.S. Treasury securities | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	0	0
Fair Value, Measurements, Recurring | Obligations of the U.S. government and agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	114,149	102,020
Fair Value, Measurements, Recurring | Obligations of the U.S. government and agencies | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	0	0
Fair Value, Measurements, Recurring | Obligations of the U.S. government and agencies | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	114,149	102,020
Fair Value, Measurements, Recurring | Obligations of the U.S. government and agencies | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	0	0
Fair Value, Measurements, Recurring | Obligations of state and political subdivisions
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	4,583	5,379
Fair Value, Measurements, Recurring | Obligations of state and political subdivisions | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	0	0
Fair Value, Measurements, Recurring | Obligations of state and political subdivisions | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	4,583	5,379
Fair Value, Measurements, Recurring | Obligations of state and political subdivisions | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	0	0
Fair Value, Measurements, Recurring | Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	377,204	366,002
Fair Value, Measurements, Recurring | Mortgage-backed securities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	0	0
Fair Value, Measurements, Recurring | Mortgage-backed securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	377,204	366,002
Fair Value, Measurements, Recurring | Mortgage-backed securities | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	0	0
Fair Value, Measurements, Recurring | Collateralized mortgage obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	25,873	31,832
Fair Value, Measurements, Recurring | Collateralized mortgage obligations | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	0	0
Fair Value, Measurements, Recurring | Collateralized mortgage obligations | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	25,873	31,832
Fair Value, Measurements, Recurring | Collateralized mortgage obligations | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	0	0
Fair Value, Measurements, Recurring | Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	8,022
Fair Value, Measurements, Recurring | Corporate bonds | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	0
Fair Value, Measurements, Recurring | Corporate bonds | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	8,022
Fair Value, Measurements, Recurring | Corporate bonds | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	0
Fair Value, Measurements, Recurring | Other investment securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	650	650
Fair Value, Measurements, Recurring | Other investment securities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	0	0
Fair Value, Measurements, Recurring | Other investment securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	650	650
Fair Value, Measurements, Recurring | Other investment securities | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	0	0
Fair Value, Measurements, Recurring | Mutual funds with no stated maturity
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities trading	7,801	8,621
Fair Value, Measurements, Recurring | Mutual funds with no stated maturity | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities trading	7,801	8,621
Fair Value, Measurements, Recurring | Mutual funds with no stated maturity | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities trading	0	0
Fair Value, Measurements, Recurring | Mutual funds with no stated maturity | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities trading	0	0
Fair Value, Measurements, Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	11,657	20,149
Fair Value, Measurements, Nonrecurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	0	0
Fair Value, Measurements, Nonrecurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	0	0
Fair Value, Measurements, Nonrecurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	11,657	20,149
Fair Value, Measurements, Nonrecurring | Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	3,440	4,838
Fair Value, Measurements, Nonrecurring | Mortgage-backed securities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	0	0
Fair Value, Measurements, Nonrecurring | Mortgage-backed securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	0	0
Fair Value, Measurements, Nonrecurring | Mortgage-backed securities | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	3,440	4,838
Fair Value, Measurements, Nonrecurring | Collateral-dependent loans and leases
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	8,217	15,311
Fair Value, Measurements, Nonrecurring | Collateral-dependent loans and leases | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	0	0
Fair Value, Measurements, Nonrecurring | Collateral-dependent loans and leases | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	0	0
Fair Value, Measurements, Nonrecurring | Collateral-dependent loans and leases | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	8,217	15,311
Interest rate swaps | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives	143,339	47,627
Interest rate swaps | Fair Value, Measurements, Recurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives	0	0
Interest rate swaps | Fair Value, Measurements, Recurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives	143,339	47,627
Interest rate swaps | Fair Value, Measurements, Recurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives	0	0
RPAs Purchased | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives	358	90
RPAs Purchased | Fair Value, Measurements, Recurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives	0	0
RPAs Purchased | Fair Value, Measurements, Recurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives	358	90
RPAs Purchased | Fair Value, Measurements, Recurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives	0	$ 0
FX forwards | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives	36
FX forwards | Fair Value, Measurements, Recurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives	0
FX forwards | Fair Value, Measurements, Recurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives	36
FX forwards | Fair Value, Measurements, Recurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives	$ 0

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Fair Value Measurement - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2020
Allowance for Loan and Lease Loss
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Valuation allowance, period increase (decrease)	$ (110)	$ 122
Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Discount on appraisals of secured collateral (as a percent)		10.00%
Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Discount on appraisals of secured collateral (as a percent)		50.00%

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Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Financial assets:
Investment securities - available for sale	$ 530,581	$ 1,005,984
Investment securities, trading	7,801	8,621
Investment securities – held to maturity	12,995	12,661
Carrying Amount
Financial assets:
Investment securities - available for sale	530,581	1,005,984
Investment securities, trading	7,801	8,621
Total financial assets	4,871,112	4,857,148
Financial liabilities:
Total financial liabilities	4,623,945	4,606,085
Fair Value
Financial assets:
Investment securities - available for sale	530,581	1,005,984
Investment securities, trading	7,801	8,621
Total financial assets	4,768,704	4,787,177
Financial liabilities:
Total financial liabilities	4,626,820	4,608,358
Level 1 | Carrying Amount
Financial assets:
Cash and cash equivalents	464,521	53,931
Level 1 | Fair Value
Financial assets:
Cash and cash equivalents	464,521	53,931
Level 2 | Carrying Amount
Financial assets:
Investment securities – held to maturity	12,592	12,577
Loans held for sale	4,116	4,249
Financial liabilities:
Deposits	4,243,648	3,842,245
Short-term borrowings	28,891	493,219
Long-term FHLB advances	44,837	52,269
Subordinated notes	98,794	98,705
Junior subordinated debentures	21,843	21,753
Level 2 | Carrying Amount | Interest rate swaps
Financial assets:
Derivative assets	143,339	47,627
Financial liabilities:
Derivative liabilities	143,339	47,627
Level 2 | Carrying Amount | FX forwards
Financial assets:
Derivative assets	36	0
Financial liabilities:
Derivative liabilities	107	0
Level 2 | Carrying Amount | RPAs purchased
Financial assets:
Derivative assets	358	90
Level 2 | Carrying Amount | RPAs sold
Financial liabilities:
Derivative liabilities	39	16
Level 2 | Fair Value
Financial assets:
Investment securities – held to maturity	12,995	12,661
Loans held for sale	4,116	4,249
Financial liabilities:
Deposits	4,248,488	3,842,014
Short-term borrowings	28,891	493,219
Long-term FHLB advances	45,664	52,380
Subordinated notes	91,748	97,199
Junior subordinated debentures	26,097	25,652
Level 2 | Fair Value | Interest rate swaps
Financial assets:
Derivative assets	143,339	47,627
Financial liabilities:
Derivative liabilities	143,339	47,627
Level 2 | Fair Value | FX forwards
Financial assets:
Derivative assets	36	0
Financial liabilities:
Derivative liabilities	107	0
Level 2 | Fair Value | RPAs purchased
Financial assets:
Derivative assets	358	90
Level 2 | Fair Value | RPAs sold
Financial liabilities:
Derivative liabilities	39	16
Level 3 | Carrying Amount
Financial assets:
Net portfolio loans and leases	3,667,191	3,666,711
MSRs	3,440	4,450
Other assets	37,137	52,908
Financial liabilities:
Other liabilities	42,447	50,251
Level 3 | Fair Value
Financial assets:
Net portfolio loans and leases	3,564,380	3,596,268
MSRs	3,440	4,838
Other assets	37,137	52,908
Financial liabilities:
Other liabilities	$ 42,447	$ 50,251

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Financial Instruments with Off-Balance Sheet Risk, Contingencies and Concentration of Credit Risk (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Standby Letters of Credit
Loss Contingencies [Line Items]
Commitments and obligations, liability outstanding	$ 13.2	$ 20.7
Commitments to Extend Credit
Loss Contingencies [Line Items]
Commitments and obligations, liability outstanding	$ 826.3	$ 828.9
Subsidiary | Snyder v Crusador Servicing Corporation Case
Loss Contingencies [Line Items]
Ownership percentage of subsidiary	80.00%

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Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Segment Reporting Information [Line Items]
Net interest income	$ 37,385	$ 36,611	$ 73,718	$ 74,258
Provision for credit losses on loans and leases	4,302	1,627	36,637	5,363
Net interest income after provision for credit losses on loans and leases	33,083	34,984	37,081	68,895
Fees for wealth management services	9,069	11,510	20,237	21,902
Insurance commissions	1,303	1,697	2,836	3,369
Capital markets revenue	2,975	1,489	5,336	3,708
Service charges on deposit accounts	603	852	1,449	1,660
Loan servicing and other fees	452	553	913	1,162
Net gain on sale of loans	3,134	752	3,916	1,071
Net gain (loss) on sale of OREO	0	0	148	(24)
Other operating income	3,030	3,368	4,031	6,626
Total noninterest income	20,566	20,221	38,866	39,474
Salaries and wages	16,926	17,038	33,915	37,939
Employee benefits	3,221	3,317	6,721	7,483
Occupancy and bank premises	3,033	3,125	6,048	6,377
Amortization of intangible assets	910	956	1,828	1,894
Professional fees	1,575	1,316	2,943	2,636
Other operating expenses	8,971	9,436	19,599	18,583
Total noninterest expenses	34,636	35,188	71,054	74,912
Segment profit	19,013	20,017	4,893	33,457
Intersegment (revenues) expenses	0	0	0	0
Pre-tax segment profit after eliminations	$ 19,013	$ 20,017	$ 4,893	$ 33,457
% of segment pre-tax profit after eliminations	100.00%	100.00%	100.00%	100.00%
Segment assets	$ 5,271,311	$ 4,736,600	$ 5,271,311	$ 4,736,600	$ 5,263,259
Assets under management, administration, supervision and brokerage	17,012,900		17,012,900		$ 16,548,100
Banking
Segment Reporting Information [Line Items]
Net interest income	37,384	36,610	73,716	74,255
Provision for credit losses on loans and leases	4,302	1,627	36,637	5,363
Net interest income after provision for credit losses on loans and leases	33,082	34,983	37,079	68,892
Fees for wealth management services	0	0	0	0
Insurance commissions	0	0	0	0
Capital markets revenue	2,975	1,489	5,336	3,708
Service charges on deposit accounts	603	852	1,449	1,660
Loan servicing and other fees	452	553	913	1,162
Net gain on sale of loans	3,134	752	3,916	1,071
Net gain (loss) on sale of OREO			148	(24)
Other operating income	2,942	3,342	3,930	6,579
Total noninterest income	10,106	6,988	15,692	14,156
Salaries and wages	11,699	12,295	23,558	28,070
Employee benefits	2,301	2,338	4,898	5,510
Occupancy and bank premises	2,535	2,608	5,051	5,340
Amortization of intangible assets	291	328	583	655
Professional fees	1,357	1,221	2,454	2,384
Other operating expenses	7,496	7,983	16,732	15,252
Total noninterest expenses	25,679	26,773	53,276	57,211
Segment profit	17,509	15,198	(505)	25,837
Intersegment (revenues) expenses	(177)	(125)	(355)	(248)
Pre-tax segment profit after eliminations	$ 17,332	$ 15,073	$ (860)	$ 25,589
% of segment pre-tax profit after eliminations	91.20%	75.30%	(17.60%)	76.50%
Segment assets	$ 5,221,700	$ 4,682,000	$ 5,221,700	$ 4,682,000
Wealth Management
Segment Reporting Information [Line Items]
Net interest income	1	1	2	3
Provision for credit losses on loans and leases	0	0	0	0
Net interest income after provision for credit losses on loans and leases	1	1	2	3
Fees for wealth management services	9,069	11,510	20,237	21,902
Insurance commissions	1,303	1,697	2,836	3,369
Capital markets revenue	0	0	0	0
Service charges on deposit accounts	0	0	0	0
Loan servicing and other fees	0	0	0	0
Net gain on sale of loans	0	0	0	0
Net gain (loss) on sale of OREO			0	0
Other operating income	88	26	101	47
Total noninterest income	10,460	13,233	23,174	25,318
Salaries and wages	5,227	4,743	10,357	9,869
Employee benefits	920	979	1,823	1,973
Occupancy and bank premises	498	517	997	1,037
Amortization of intangible assets	619	628	1,245	1,239
Professional fees	218	95	489	252
Other operating expenses	1,475	1,453	2,867	3,331
Total noninterest expenses	8,957	8,415	17,778	17,701
Segment profit	1,504	4,819	5,398	7,620
Intersegment (revenues) expenses	177	125	355	248
Pre-tax segment profit after eliminations	$ 1,681	$ 4,944	$ 5,753	$ 7,868
% of segment pre-tax profit after eliminations	8.80%	24.70%	117.60%	23.50%
Segment assets	$ 49,600	$ 54,600	$ 49,600	$ 54,600