Bryn Mawr Bank Corporation Reports Record Earnings of $7.6 Million, Increases Dividend 5.6% to $0.19, Wealth Assets Reach $7.6 Billion

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| Source: Bryn Mawr Bank Corporation

BRYN MAWR, Pa., July 24, 2014 (GLOBE NEWSWIRE) -- Bryn Mawr Bank Corporation (Nasdaq:BMTC), (the "Corporation"), parent of The Bryn Mawr Trust Company (the "Bank"), today reported net income of $7.6 million and diluted earnings per share of $0.55 for the three months ended June 30, 2014, as compared to net income of $6.3 million and diluted earnings per share of $0.46 for the same period in 2013. Net income for the three months ended June 30, 2014 included pre-tax due diligence and merger-related expenses of $377 thousand as compared to $688 thousand for the same period in 2013.

Significant factors contributing to the record results for the three months ended June 30, 2014, as compared to the same period in 2013, included increases in net interest income and wealth management revenues, bolstered by a decrease in provision for loan and lease losses between periods. These improvements were partially offset by a decrease in the gain on sale of residential mortgage loans.

"We are delighted to see the continued quarter-over-quarter increase in earnings," said Ted Peters, Chairman and Chief Executive Officer, adding that, "The excellent health of our loan portfolio and continued growth of our wealth division are encouraging signs as we head into the second half of 2014."

The pending merger with Continental Bank Holdings, Inc. ("CBH") is progressing as planned, and remains subject to approval by CBH's and the Corporation's shareholders, and applicable regulators. Frank Leto, President and Chief Operating Officer commented, "As the CBH merger moves closer to completion, we are very excited to join forces with their staff and to expand the Bank's footprint to serve a much broader segment of the surrounding communities."

As an indication of its confidence in the Corporation's business plan and the plan's execution, on July 24, 2014, the Board of Directors of the Corporation declared a quarterly dividend of $0.19 per share, an increase of 5.6% from the previous quarter, payable September 1, 2014 to shareholders of record as of August 5, 2014.

SIGNIFICANT ITEMS OF NOTE

Results of Operations – 2nd Quarter 2014 Compared to 2nd Quarter 2013

  • Net income of $7.6 million for the three months ended June 30, 2014 increased $1.4 million, or 21.6%, from $6.3 million for the same period in 2013.
     
  • Net interest income for the three months ended June 30, 2014 was $19.4 million, an increase of $1.5 million, or 8.5%, from $17.9 million for the same period in 2013. The increase in net interest income between the periods was largely the result of a $172.3 million, or 12.1%, increase in average loans from June 30, 2013 to June 30, 2014. Segments of the loan portfolio experiencing the most significant increases included commercial mortgage, commercial and industrial, construction and residential mortgage loans. Partially offsetting this loan growth was a decrease in average available for sale investment securities of $53.9 million from June 30, 2013 to June 30, 2014, as cash flows from the investment portfolio were utilized to originate loans. In addition to the decrease in the investment portfolio, average long-term borrowings increased by $72.4, or 48.1% from June 30, 2013 to June 30, 2014, as loan demand necessitated this increase in borrowed funds.
     
  • The tax-equivalent net interest margin of 4.03% for the three months ended June 30, 2014 was a 5 basis point increase from 3.98% for the same period in 2013. The increase was the result of a $130.6 million increase in average interest-earning assets whose tax-equivalent yield increased by 7 basis points, partially offset by a $82.3 million increase in average interest-bearing liabilities whose tax-equivalent rate paid increased by 3 basis points between the periods. The 7 basis point increase in the tax-equivalent yield on interest-earning assets was primarily the result of the redeployment of funds generated from pay-downs, sales and maturities of available for sale investment securities to originate loans earning substantially higher yields than the investments.
     
  • Non-interest income for the three months ended June 30, 2014 decreased $186 thousand as compared to the same period in 2013. The primary cause for this decline was a $955 thousand, or 64.0%, decrease in the gain on sale of residential mortgage loans. During the three months ended June 30, 2014, the volume of residential mortgage loans sold to the secondary market was significantly lower than the volume sold during the same period in 2013, with residential mortgages sold totaling $15.2 million, as compared to $46.6 million during the same period in 2013, a 67.5% decrease. Although mortgage loan sales during the second quarter of 2014 declined from the levels experienced in the second quarter of 2013, they did increase by 64.0% from the first quarter of 2014. Partially offsetting this decrease in non-interest income was a $405 thousand increase in revenue from wealth management services for the three months ended June 30, 2014 as compared to the same period in 2013. Wealth Management Division assets under management, administration, supervision and brokerage as of June 30, 2014 were $7.6 billion, an increase of $715 million, or 10.4%, from June 30, 2013. This increase was driven by organic growth due to the success of the division's strategic initiatives, market appreciation and other new business between the dates.
     
  • Non-interest expense for the three months ended June 30, 2014 increased $102 thousand, to $20.6 million, as compared to $20.5 million for the same period in 2013. Several offsetting increases and decreases contributed to this small increase. Increases of $608 thousand in salaries resulted from the establishment of two senior management level positions, in addition to the payment of severance benefits and annual salary increases. In addition, professional fees increased by $250 thousand during the three months ended June 30, 2014, as compared to the same period in 2013, as the Corporation has engaged several new consultants in connection with ongoing infrastructure enhancement projects. Substantially offsetting these noninterest expense increases was a $311 thousand decrease in due diligence and merger-related expenses primarily related to the merger with MidCoast Community Bancorp, which was terminated in August, 2013. Also, employee benefits expense experienced a $402 thousand decrease, as better-than-expected returns on pension assets in 2013 along with an increase in the discount rate used to calculate periodic pension costs helped reduce costs associated with the Corporation's retirement plans.
     
  • For the three months ended June 30, 2014, the Corporation released $100 thousand from its allowance for loan and lease losses (the "Allowance"), as compared to a $1.0 million provision for loan and lease losses (the "Provision") for the same period in 2013. Lower net charge-offs, reductions in nonperforming loans, upgrades of internally-assigned risk ratings of the Corporation's loan portfolio as well as improvements to certain qualitative factors considered in the calculation of the Allowance contributed to this significant decrease in the Provision.

Results of Operations – 2nd Quarter 2014 Compared to the 1st Quarter 2014

  • Net income of $7.6 million for the three months ended June 30, 2014 increased $915 thousand, or 13.7%, from $6.7 million for the three months ended March 31, 2014.
     
  • Net interest income for the three months ended June 30, 2014 was $19.4 million, an increase of $719 thousand, or 3.8%, from $18.7 million for the three months ended March 31, 2014. The $44.0 million increase in average interest-earning assets, whose tax-equivalent yield increased by 2 basis points, was partially offset by a $39.2 million increase in average interest-bearing liabilities, whose tax-equivalent rate remained unchanged between the periods.
     
  • The tax-equivalent net interest margin of 4.03% for the three months ended June 30, 2014 was a 1 basis point increase from 4.02% for the three months ended March 31, 2014. The slight increase between periods resulted as a $44.0 million increase in average interest-earning assets was substantially offset by a $39.2 million increase in average interest-bearing liabilities. Although the increase in average interest-bearing liabilities nearly offset the increase in average interest-earning assets, the tax-equivalent yield earned on interest-earning assets increased by 2 basis points, while the tax-equivalent rate paid on interest-bearing liabilities remained unchanged.
     
  • Non-interest income for the three months ended June 30, 2014 increased $1.6 million as compared to the three months ended March 31, 2014. Significant factors contributing to this increase included a $586 thousand increase in wealth management revenues, a $213 thousand increase in gain on sale of residential mortgages, a $220 thousand increase in gain on sale of other real estate owned ("OREO"), and a $480 thousand increase in other operating income. Increases in wealth management revenues were partially related to tax work performed during the federal tax filing period along with market appreciation and new business within the division. The gain on sale of residential mortgage loans improved as loan sales increased by 64.0% on a linked-quarter basis. Four OREO properties were sold during the quarter, which resulted in a $220 thousand gain, while no sales were completed during the first quarter of 2014. Other operating income increased as a result of the receipt of dividends on Federal Reserve and FHLB capital stock, gains on trading securities and income from other investments.
     
  • Non-interest expense for the three months ended June 30, 2014 increased $1.7 million, to $20.6 million, as compared to $18.9 million for the three months ended March 31, 2014. The increase between the periods was largely related to increases of $1.1 million in salaries and employee benefits and $321 thousand in professional fees. The increase in salaries and employee benefits was related to higher levels of variable, incentive-based compensation and bonus accruals during the second quarter of 2014 as compared to the first quarter of 2014. In addition, staffing increases made in connection with the ongoing infrastructure enhancement projects and severance compensation contributed to the increase. The increase in professional fees was also related to the infrastructure improvements which are underway in several areas of the Bank.
     
  • Nonperforming loans and leases of $8.4 million as of June 30, 2014 were 0.52% of total portfolio loans and leases, as compared $10.2 million, or 0.65% of total portfolio loans and leases as of March 31, 2014. This decrease resulted as the Corporation recorded $1.5 million in payoffs and returns to performing status of previously nonperforming loans, partially offset by $545 thousand in loans that became nonperforming between March 31, 2014 and June 30, 2014. In addition, the Corporation added one residential property and one parcel of land with an aggregate value of $685 thousand to OREO, as a result of the foreclosure of nonperforming loans. For the three months ended June 30, 2014, the Corporation recorded net loan and lease charge-offs of $200 thousand, as compared to $495 thousand for the three months ended March 31, 2014. As a result of lower net charge-offs, reductions in nonperforming loans, upgrades of internally-assigned risk ratings of the Corporation's loan portfolio as well as overall improvements to certain qualitative factors considered in calculating the Allowance, the Corporation released $100 thousand of Allowance during the three months ended June 30, 2014, as compared to a $750 thousand Provision for the three months ended March 31, 2014.

Financial Condition – June 30, 2014 Compared to December 31, 2013

  • Total portfolio loans and leases of $1.62 billion as of June 30, 2014 increased by $68.4 million, or 4.4%, from December 31, 2013, with commercial mortgages, commercial and industrial, and construction loans accounting for a majority of the increase.
     
  • The allowance for loan and lease losses as of June 30, 2014 was $15.5 million, or 0.96%, of portfolio loans as compared to $15.5 million, or 1.00% of portfolio loans and leases, as of December 31, 2013. As discussed above, several factors contributed to this decrease as a percentage of portfolio loans, including lower net charge-offs, reductions in nonperforming loans, upgrades of internally-assigned risk ratings of the Corporation's loan portfolio and improvements to certain qualitative factors management considers in calculating the Allowance.
     
  • Total assets as of June 30, 2014 were $2.13 billion, an increase of $69.6 million from December 31, 2013. Loan originations accounted for substantially all of this increase, with funding derived from increased deposits and borrowings, as well as cash inflows from the sales, pay-downs and maturities of available for sale investment securities.
     
  • Deposits of $1.62 billion, as of June 30, 2014, increased $28.6 million from December 31, 2013. The increase was comprised of a $24.8 million increase in savings and money market accounts, a $14.4 million increase in wholesale deposits and a $10.1 million increase in non-interest-bearing deposits. These increases were partially offset by a $17.2 million decrease in time deposits between the dates.
     
  • The capital ratios for the Bank and the Corporation, as shown in the table below, indicate levels well above the regulatory minimum to be considered "well capitalized." The tangible equity ratios for both the Bank and the Corporation have improved from their December 31, 2013 levels of 8.78% and 8.92%, to 9.18% and 9.32%, respectively, at June 30, 2014. These increases were primarily related to an increase in retained earnings, along with increases in unrealized gains on available for sale investment securities between the dates.

EARNINGS CONFERENCE CALL

The Corporation will hold an earnings conference call at 8:30 AM EDT on Friday, July 25, 2014. Interested parties may participate by calling 1-877-504-8812. A taped replay of the conference call will be available one hour after the conclusion of the call and will remain available through 9:00 AM EDT on Monday, August 11, 2014. A recording of the earnings conference call may be obtained by calling 1-877-344-7529, referring to conference number 10048017.

The conference call will be simultaneously broadcast live over the Internet through a webcast on the investor relations portion of the Bryn Mawr Bank Corporation's website. To access the call, please visit the website at http://services.choruscall.com/links/bmtc140725.html. An online archive of the webcast will be available within one hour of the conclusion of the call. The Corporation has also recently expanded its Investor Relations website to include added resources and information for shareholders and interested investors. Interested parties are encouraged to utilize the expanded resources of the site for more information on Bryn Mawr Bank Corporation.

FORWARD LOOKING STATEMENTS AND SAFE HARBOR

This press release contains statements which, to the extent that they are not recitations of historical fact may constitute forward-looking statements for purposes of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. Such forward-looking statements may include financial and other projections as well as statements regarding the Corporation's future plans, objectives, performance, revenues, growth, profits, operating expenses or the Corporation's underlying assumptions. The words "may,"  "would," "should," "could," "will," "likely," "possibly," "expect," "anticipate," "intend," "estimate," "target," "potentially," "probably," "outlook," "predict," "contemplate," "continue," "plan," "forecast," "project," "are optimistic," "are looking," "are looking forward" and "believe" or other similar words and phrases may identify forward-looking statements. Persons reading this press release are cautioned that such statements are only predictions, and that the Corporation's actual future results or performance may be materially different.

Such forward-looking statements involve known and unknown risks and uncertainties.   A number of factors, many of which are beyond the Corporation's control, could cause our actual results, events or developments, or industry results, to be materially different from any future results, events or developments expressed, implied or anticipated by such forward-looking statements, and so our business and financial condition and results of operations could be materially and adversely affected. Such factors include, among others, our need for capital, our ability to control operating costs and expenses, and to manage loan and lease delinquency rates; the credit risks of lending activities and overall quality of the composition of our loan, lease and securities portfolio; the impact of economic conditions, consumer and business spending habits, and real estate market conditions on our business and in our market area; changes in the levels of general interest rates, deposit interest rates, or net interest margin and funding sources; changes in banking regulations and policies and the possibility that any banking agency approvals we might require for certain activities will not be obtained in a timely manner or at all or will be conditioned in a manner that would impair our ability to implement our business plans; changes in accounting policies and practices; the inability of key third-party providers to perform their obligations to us; our ability to attract and retain key personnel; competition in our marketplace; war or terrorist activities; material differences in the actual financial results, cost savings and revenue enhancements associated with our acquisitions; and other factors as described in our securities filings. All forward-looking statements and information set forth herein are based on management's current beliefs and assumptions as of the date hereof and speak only as of the date they are made. The Corporation does not undertake to update forward-looking statements.

For a complete discussion of the assumptions, risks and uncertainties related to our business, you are encouraged to review our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K, as well as any changes in risk factors that we may identify in our quarterly or other reports subsequently filed with the SEC.

           
Bryn Mawr Bank Corporation
Consolidated Statements of Income - (unaudited)
(dollars in thousands, except per share data)
           
           
  For The Three Months Ended
  June 30, March 31, December 31, Sepember 30, June 30,
  2014 2014 2013 2013 2013
           
Interest income  $ 20,941  $ 20,161  $ 20,525  $ 19,820  $ 19,217
Interest expense  1,499  1,438  1,400  1,287  1,294
           
Net interest income  19,442  18,723  19,125  18,533  17,923
Provision for loan and lease losses  (100)  750  812  959  1,000
Net interest income after provision for loan and lease losses  19,542  17,973  18,313  17,574  16,923
           
Fees for wealth management services  9,499  8,913  9,106  8,635  9,094
Loan servicing and other fees  428  446  465  481  448
Service charges on deposits  656  601  638  627  596
Net gain on sale of residential mortgage loans  537  324  529  578  1,492
Net gain (loss) on sale of investment securities available for sale  85  (4)  (10)  --  --
Net gain (loss) on sale of other real estate owned  220  --  (106)  (1)  (141)
Bank owned life insurance income  74  81  88  72  85
Other operating income  1,258  778  1,525  995  1,369
Non-interest income  12,757  11,139  12,235  11,387  12,943
           
Salaries and wages  9,694  8,440  9,438  9,012  9,086
Employee benefits  1,809  1,979  2,399  1,896  2,212
Net gain on curtailment of nonqualified pension plan  --  --  --  --  (120)
Occupancy and bank premises  1,683  1,933  1,738  1,646  1,728
Furniture fixtures and equipment  1,089  983  1,017  920  1,221
Advertising  455  339  431  303  380
Net (recovery) impairment of mortgage servicing rights  (3)  (8)  (10)  33  (91)
Amortization of mortgage servicing rights  128  115  123  187  218
Amortization of intangible assets  636  637  655  657  660
FDIC insurance  242  271  259  271  275
Due diligence and merger-related expenses  377  264  155  328  688
Professional fees  914  593  581  636  664
Pennsylvania bank shares tax  412  368  274  139  366
Other operating expenses  3,190  2,985  3,598  3,295  3,237
Non-interest expense  20,626  18,899  20,658  19,323  20,524
           
Income before income taxes  11,673  10,213  9,890  9,638  9,342
Income tax expense  4,069  3,524  3,419  3,237  3,090
Net income  $ 7,604  $ 6,689  $ 6,471  $ 6,401  $ 6,252
           
Per share data:          
Weighted average shares outstanding  13,531,170  13,485,213  13,419,269  13,336,799  13,280,624
Dilutive common shares  304,998  304,828  308,674  275,343  227,150
Adjusted weighted average dilutive shares  13,836,168  13,790,041  13,727,943  13,612,142  13,507,774
           
Basic earnings per common share $0.56 $0.50 $0.48 $0.48 $0.47
           
Diluted earnings per common share $0.55 $0.49 $0.47 $0.47 $0.46
           
Dividend declared per share $0.18 $0.18 $0.18 $0.17 $0.17
           
Effective tax rate 34.9% 34.5% 34.6% 33.6% 33.1%
           
Bryn Mawr Bank Corporation
Consolidated Statements of Income - (unaudited)
(dollars in thousands, except per share data)
     
  For The Six Months Ended June 30,
  2014 2013
     
Interest income  $ 41,102  $ 38,072
Interest expense  2,937  2,740
     
Net interest income  38,165  35,332
Provision for loan and lease losses  650  1,804
Net interest income after provision for loan and lease losses  37,515  33,528
     
Fees for wealth management services  18,412  17,443
Loan servicing and other fees  874  899
Service charges on deposits  1,257  1,180
Net gain on sale of residential mortgage loans  861  3,010
Net gain on sale of investment securities available for sale  81  2
Net gain (loss) on sale of other real estate owned  220  (193)
Bank owned life insurance income  155  198
Other operating income  2,036  2,194
Non-interest income  23,896  24,733
     
Salaries and wages  18,134  17,896
Employee benefits  3,788  4,537
Net gain on curtailment of nonqualified pension plan  --  (690)
Occupancy and bank premises  3,616  3,478
Furniture fixtures and equipment  2,072  2,040
Advertising  794  792
Net recovery of mortgage servicing rights  (11)  (20)
Amortization of mortgage servicing rights  243  430
Amortization of intangible assets  1,273  1,321
FDIC insurance  513  533
Due diligence and merger-related expenses  641  1,402
Professional fees  1,507  1,239
Early extinguishment of debt - costs and premiums  --  347
Pennsylvania bank shares tax  780  730
Other operating expenses  6,175  6,724
Non-interest expense  39,525  40,759
     
Income before income taxes  21,886  17,502
Income tax expense  7,593  5,930
Net income  $ 14,293  $ 11,572
     
Per share data:    
Weighted average shares outstanding  13,508,319  13,243,289
Dilutive common shares  304,913  228,782
Adjusted weighted average shares  13,813,232  13,472,071
     
Basic earnings per common share $1.06 $0.87
     
Diluted earnings per common share $1.03 $0.86
     
Dividend declared per share $0.36 $0.34
     
Effective tax rate 34.7% 33.9%
     
Bryn Mawr Bank Corporation
Consolidated Balance Sheets - (unaudited)
(dollars in thousands)
           
  June 30, March 31, December 31, September 30, June 30,
  2014 2014 2013 2013 2013
Assets          
           
Interest-bearing deposits with banks  $ 85,946  $ 59,248  $ 67,618  $ 71,203  $ 95,903
Investment securities - available for sale  266,402  272,599  285,808  319,917  322,961
Investment securities - trading  3,597  3,517  3,437  2,357  2,180
Loans held for sale  1,631  1,340  1,350  1,284  2,207
Portfolio loans:          
Consumer  18,907  18,104  16,926  17,572  18,404
Commercial & industrial  334,474  334,295  328,459  303,259  296,073
Commercial mortgages  666,924  640,574  625,341  622,771  587,261
Construction  55,051  44,060  46,369  39,055  28,718
Residential mortgages  310,491  301,532  300,243  291,645  280,687
Home equity lines & loans  185,593  186,277  189,571  187,634  183,006
Leases  44,102  40,988  40,276  38,079  36,770
Total portfolio loans and leases  1,615,542  1,565,830  1,547,185  1,500,015  1,430,919
           
Earning assets  1,973,118  1,902,534  1,905,398  1,894,776  1,854,170
           
Cash and due from banks  17,018  14,696  13,453  24,958  14,208
Allowance for loan and lease losses  (15,470)  (15,770)  (15,515)  (15,027)  (14,444)
Premises and equipment  32,679  32,473  31,796  31,436  30,947
Accrued interest receivable  5,526  5,687  5,728  5,703  6,097
Mortgage servicing rights  4,760  4,734  4,750  4,744  4,790
Goodwill  32,843  32,843  32,843  32,843  32,843
Other intangible assets  18,092  18,728  19,365  20,020  20,677
Bank owned life insurance  20,375  20,301  20,220  20,132  20,060
FHLB stock  12,775  11,911  11,654  12,590  13,028
Deferred income taxes  5,984  7,517  8,690  11,955  11,788
Other investments  4,507  4,392  4,437  4,337  4,378
Other assets  19,018  19,770  18,846  10,506  10,980
           
Total assets  $ 2,131,225  $ 2,059,816  $ 2,061,665  $ 2,058,973  $ 2,009,522
           
Liabilities and shareholders' equity          
           
Interest-bearing deposits:          
Interest-bearing checking  $ 263,247  $ 269,409  $ 266,787  $ 244,826  $ 262,316
Money market  559,070  556,076  544,310  548,011  551,750
Savings  145,312  141,979  135,240  137,431  136,307
Wholesale non-maturity deposits  41,840  42,704  42,937  57,195  30,315
Wholesale time deposits  50,152  34,104  34,639  23,127  12,139
Time deposits  123,572  130,983  140,794  145,119  161,146
Total interest-bearing deposits  1,183,193  1,175,255  1,164,707  1,155,709  1,153,973
           
Non-interest-bearing deposits  436,739  404,340  426,640  394,947  395,742
Total deposits  1,619,932  1,579,595  1,591,347  1,550,656  1,549,715
           
Long-term FHLB advances and other borrowings  233,132  214,640  205,644  191,645  152,642
Short-term borrowings  13,320  10,739  10,891  75,588  71,768
Other liabilities  21,470  19,365  23,885  23,323  22,929
Shareholders' equity  243,371  235,477  229,898  217,761  212,468
           
Total liabilities and shareholders' equity  $ 2,131,225  $ 2,059,816  $ 2,061,665  $ 2,058,973  $ 2,009,522
           
Bryn Mawr Bank Corporation
Consolidated Quarterly Average Balance Sheets - (unaudited)
(dollars in thousands)
  For The Three Months Ended
  June 30, March 31, December 31, September 30, June 30,
  2014 2014 2013 2013 2013
Assets          
           
Interest-bearing deposits with banks  $ 70,775  $ 67,809  $ 56,569  $ 35,589  $ 59,981
Investment securities - available for sale  271,830  281,572  310,183  324,418  325,729
Investment securities - trading  3,518  3,438  2,368  2,182  2,168
Loans held for sale  1,280  504  1,197  867  2,233
Portfolio loans and leases  1,599,104  1,549,161  1,522,408  1,463,492  1,425,836
Earning assets  1,946,507  1,902,484  1,892,725  1,826,548  1,815,947
           
Cash and due from banks  12,067  12,302  13,132  12,497  12,876
Allowance for loan and lease losses  (16,073)  (15,761)  (15,226)  (14,653)  (14,625)
Premises and equipment  32,829  32,358  31,770  31,216  31,254
Goodwill  32,843  32,843  32,843  32,843  32,896
Other intangible assets  18,459  19,095  19,741  20,400  21,055
Bank owned life insurance  20,327  20,252  20,163  20,086  20,005
FHLB stock  12,663  11,915  12,242  12,809  10,430
Deferred income taxes  7,119  7,908  11,733  11,946  10,997
Other assets  29,750  29,940  22,288  21,904  25,296
           
Total assets  $ 2,096,491   $ 2,053,336  $ 2,041,411  $ 1,975,596  $ 1,966,131
           
Liabilities and shareholders' equity          
           
Interest-bearing deposits:          
Interest-bearing checking  $ 264,087  $ 263,612  $ 248,722  $ 249,982  $ 263,842
Money market  556,241  545,108  548,351  559,911  571,327
Savings  143,418  137,812  137,327  135,070  134,485
Wholesale non-maturity deposits  42,970  41,828  48,465  47,804  31,124
Wholesale time deposits  48,791  35,133  22,735  10,911  11,610
Time deposits  127,167  134,574  142,258  152,788  164,247
Total interest-bearing deposits  1,182,674  1,158,067  1,147,858  1,156,466  1,176,635
           
Non-interest bearing deposits  416,104  415,514  420,072  402,292  391,387
Total deposits  1,598,778  1,573,581  1,567,930  1,558,758  1,568,022
           
Long-term FHLB advances and other borrowings  222,851  212,405  204,780  163,818  150,468
Short-term borrowings  17,220  13,090  25,364  14,995  13,358
Other liabilities  19,368  22,546  23,401  24,904  23,617
Shareholders' equity  238,274  231,714  219,936  213,121  210,666
           
Total liabilities and shareholders' equity  $ 2,096,491   $ 2,053,336  $ 2,041,411  $ 1,975,596  $ 1,966,131
           
Bryn Mawr Bank Corporation
Consolidated Year-to-Date Average Balance Sheets - (unaudited)
(dollars in thousands)
     
     
  For The Six Months Ended June 30,
  2014 2013
Assets    
     
Interest bearing deposits with banks  $ 69,300  $ 88,518
Investment securities - available for sale  276,674  324,495
Investment securities - trading  3,478  1,933
Loans held for sale  894  2,438
Portfolio loans and leases  1,574,271  1,413,506
Earning assets  1,924,617  1,830,890
     
Cash and due from banks  12,184  13,080
Allowance for loan and lease losses  (15,918)  (14,659)
Premises and equipment  32,595  31,334
Goodwill  32,843  32,897
Intangible assets  18,775  21,388
Bank owned life insurance  20,289  19,955
FHLB stock  12,343  10,448
Deferred income taxes  7,511  11,586
Other assets  29,794  23,345
     
Total assets  $ 2,075,033  $ 1,980,264
     
Liabilities and shareholders' equity    
     
Interest-bearing deposits:    
Interest-bearing checking  $ 263,851  $ 265,363
Money market  550,705  573,860
Savings  140,630  133,321
Wholesale non-maturity deposits  42,402  34,882
Wholesale time deposits  42,000  11,553
Time deposits  130,850  177,518
Total interest-bearing deposits  1,170,438  1,196,497
     
Non-interest-bearing deposits  415,810  389,146
Total deposits  1,586,248  1,585,643
     
Long-term FHLB advances and other borrowings  217,657  151,120
Short-term borrowings  15,167  11,125
Other liabilities  20,948  24,878
Shareholders' equity  235,013  207,498
     
Total liabilities and shareholders' equity  $ 2,075,033  $ 1,980,264
     
Bryn Mawr Bank Corporation
Quarterly Average Balances and Tax-Equivalent Interest Income and Expense and Tax-Equivalent Yields - (unaudited)
                               
                               
  For The Three Months Ended
  June 30, 2014 March 31, 2014 December 31, 2013 September 30, 2013 June 30, 2013
           
(dollars in thousands)
Average
Balance
Interest
Income/
Expense
Average
Rates Earned/
Paid

Average
Balance
Interest
Income/
Expense
Average
Rates Earned/
Paid

Average
Balance
Interest
Income/
Expense
Average
Rates Earned/
Paid

Average
Balance
Interest
Income/
Expense
Average
Rates Earned/
Paid

Average
Balance
Interest
Income/
Expense
Average
Rates Earned/
Paid
                               
Assets:                              
Interest-bearing deposits with other banks  $ 70,775  $ 44 0.25%  $ 67,809  $ 37 0.22%  $ 56,569  $ 27 0.19%  $ 35,589  $ 21 0.23%  $ 59,981  $ 41 0.27%
Investment securities - available for sale:                              
Taxable 235,853 903 1.54% 245,006 972 1.61% 271,152 1,127 1.65% 284,558 988 1.38% 287,287 846 1.18%
Tax-exempt 35,977 151 1.68% 36,566 153 1.70% 39,031 159 1.62% 39,860 159 1.58% 38,442 146 1.52%
Total investment securities - available for sale 271,830 1,054 1.56% 281,572 1,125 1.62% 310,183 1,286 1.64% 324,418 1,147 1.40% 325,729 992 1.22%
                               
Investment securities - trading 3,518 17 1.94% 3,438 7 0.83% 2,368 51 8.54% 2,182 7 1.27% 2,168 13 2.41%
                               
Loans and leases * 1,600,384 19,936 5.00% 1,549,665 19,107 5.00% 1,523,605 19,277 5.02% 1,464,359 18,755 5.08% 1,428,069 18,277 5.13%
                               
Total interest-earning assets 1,946,507 21,051 4.34% 1,902,484 20,276 4.32% 1,892,725 20,641 4.33% 1,826,548 19,930 4.33% 1,815,947 19,323 4.27%
                               
Cash and due from banks 12,067     12,302     13,132     12,497     12,876    
Less allowance for loan and lease losses (16,073)     (15,761)     (15,226)     (14,653)     (14,625)    
Other assets 153,990     154,311     150,780     151,204     151,933    
                               
Total assets  $ 2,096,491      $ 2,053,336      $ 2,041,411      $ 1,975,596      $ 1,966,131    
                               
Liabilities:                              
                               
Interest-bearing deposits:                              
Savings, NOW and market rate deposits  $ 963,746  $ 420 0.17%  $ 946,532  $ 405 0.17%  $ 934,400  $ 414 0.18%  $ 944,963  $ 419 0.18%  $ 969,654  $ 445 0.18%
Wholesale deposits 91,761 147 0.64% 76,961 114 0.60% 71,200 85 0.47% 58,715 55 0.37% 42,734 44 0.41%
Time deposits 127,167 146 0.46% 134,574 170 0.51% 142,258 151 0.42% 152,788 165 0.43% 164,247 205 0.50%
Total interest-bearing deposits 1,182,674 713 0.24% 1,158,067 689 0.24% 1,147,858 650 0.22% 1,156,466 639 0.22% 1,176,635 694 0.24%
                               
Borrowings:                              
Short-term borrowings 17,220 5 0.12% 13,090 3 0.09% 25,364 12 0.19% 14,995 5 0.13% 13,358 4 0.12%
Long-term FHLB advances and other borrowings 222,851 781 1.41% 212,405 746 1.42% 204,780 738 1.43% 163,818 643 1.56% 150,468 596 1.59%
Total borrowings 240,071 786 1.31% 225,495 749 1.35% 230,144 750 1.29% 178,813 648 1.44% 163,826 600 1.47%
                               
Total interest-bearing liabilities 1,422,745 1,499 0.42% 1,383,562 1,438 0.42% 1,378,002 1,400 0.40% 1,335,279 1,287 0.38% 1,340,461 1,294 0.39%
                               
Noninterest-bearing deposits 416,104     415,514     420,072     402,292     391,387    
Other liabilities 19,368     22,546     23,401     24,904     23,617    
Total noninterest-bearing liabilities 435,472     438,060     443,473     427,196     415,004    
                               
Total liabilities 1,858,217     1,821,622     1,821,475     1,762,475     1,755,465    
                               
Shareholders' equity 238,274     231,714     219,936     213,121     210,666    
                               
Total liabilities and shareholders' equity  $ 2,096,491      $ 2,053,336      $ 2,041,411      $ 1,975,596      $ 1,966,131    
                               
Interest income to earning assets     4.34%     4.32%     4.33%     4.33%     4.27%
                               
Net interest spread     3.92%     3.90%     3.93%     3.95%     3.88%
Effect of noninterest-bearing sources     0.11%     0.12%     0.10%     0.10%     0.10%
                               
Tax-equivalent net interest income/ margin on earning assets    $ 19,552 4.03%    $ 18,838 4.02%    $ 19,241 4.03%    $ 18,643 4.05%    $ 18,029 3.98%
                               
Tax-equivalent adjustment    $ 110 0.02%    $ 115 0.02%    $ 116 0.02%    $ 110 0.02%    $ 106 0.02%
                               
* Average loans and leases include portfolio loans and leases, and loans held for sale. Non-accrual loans are also included in the average loan and leases balances.
                               
Bryn Mawr Bank Corporation
Average Balances and Tax-Equivalent Interest Income and Expense and Tax-Equivalent Yields
             
   
  For The Six Months Ended June 30,
  2014 2013
     
(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 other banks  $ 69,300  81 0.24%  $ 88,518  110 0.25%
Investment securities available for sale:            
Taxable  240,404  1,875 1.57%  288,187  1,734 1.21%
Tax-exempt  36,270  304 1.69%  36,308  269 1.49%
             
Investment securities - available for sale  276,674  2,179 1.59%  324,495  2,003 1.24%
             
Investment securities - trading  3,478  24 1.39%  1,933  15 1.56%
             
Loans and leases *  1,575,165  39,043 5.00%  1,415,944  36,147 5.15%
             
Total interest earning assets  1,924,617  41,327 4.33%  1,830,890  38,275 4.22%
             
Cash and due from banks  12,184      13,080    
Less allowance for loan and lease losses  (15,918)      (14,659)    
Other assets  154,150      150,953    
             
Total assets $2,075,033     $1,980,264    
             
Liabilities:            
             
Savings, NOW and market rate deposits $955,186  $ 824 0.17% $972,544  $ 923 0.19%
Wholesale deposits  84,402  262 0.63%  46,435  98 0.43%
Time deposits  130,850  316 0.49%  177,518  447 0.51%
Total interest-bearing deposits $1,170,438  1,402 0.24% $1,196,497  1,468 0.25%
             
Short-term borrowings  15,167  8 0.11%  12,672  8 0.13%
Long-term FHLB advances and other borrowings  217,657  1,527 1.41%  149,573  1,263 1.70%
Total Borrowings  232,824  1,535 1.33%  162,245  1,271 1.58%
             
Total interest-bearing liabilities  1,403,262  2,937 0.42%  1,358,742  2,739 0.41%
             
             
Noninterest-bearing deposits  415,810      389,146    
Other liabilities  20,948      24,878    
Total noninterest-bearing liabilities  436,758      414,024    
             
Total liabilities  1,840,020      1,772,766    
             
Shareholders' equity  235,013      207,498    
             
Total liabilities and shareholders' equity  $ 2,075,033      $ 1,980,264    
             
Interest income to earning assets     4.33%     4.22%
             
Net interest spread     3.91%     3.81%
Effect of noninterest-bearing sources     0.11%     0.10%
             
Tax-equivalent net interest income/ margin on earning assets    $ 38,390 4.02%    $ 35,536 3.91%
             
Tax-equivalent adjustment    $ 225 0.02%    $ 204 0.02%
             
* Average loans and leases include portfolio loans and leases, and loans held for sale. Non-accrual loans are also included in the average loan and leases balances.
             
Bryn Mawr Bank Corporation
Consolidated Selected Financial Data - (unaudited)
(dollars in thousands, except per share data)
           
           
  For The Three Months Ended or As Of
  June 30, March 31, December 31, September 30, June 30,
  2014 2014 2013 2013 2013
Asset Quality Data          
           
Nonaccrual loans and leases  $ 8,388  $ 10,236  $ 10,530  $ 10,613  $ 10,489
90 days or more past due loans, still accruing  --  --  --  --  --
Nonperforming loans and leases  8,388  10,236  10,530  10,613  10,489
Other real estate owned  853  1,040  855  1,253  1,205
Total nonperforming assets  $ 9,241  $ 11,276  $ 11,385  $ 11,866  $ 11,694
           
Troubled debt restructurings included in nonperforming assets  $ 1,597  $ 2,698  $ 1,699  $ 2,628  $ 2,869
Troubled debt restructurings in compliance with modified terms  7,487  6,667  7,277  8,947  8,157
Total troubled debt restructurings  $ 9,084  $ 9,365  $ 8,976  $ 11,575  $ 11,026
           
           
Nonperforming loans and leases / portfolio loans & leases 0.52% 0.65% 0.68% 0.71% 0.73%
           
Nonperforming assets / total assets 0.43% 0.55% 0.55% 0.58% 0.58%
           
Net loan and lease charge-offs / average loans and leases (annualized) 0.05% 0.13% 0.09% 0.10% 0.28%
           
Delinquency rate* - Performing and nonperforming loans and leases 30 days or more past due 0.64% 0.59% 0.65% 0.68% 0.73%
           
Performing loans and leases - 30-89 days past due  $ 3,743  $ 1,815  $ 1,718  $ 1,227  $ 2,328
           
Delinquency rate* - Performing loans and leases - 30-89 days past due 0.23% 0.12% 0.11% 0.08% 0.16%
           
* as a percentage of total loans and leases          
           
           
Changes in the allowance for loan and lease losses:          
           
Balance, beginning of period  $ 15,770  $ 15,515  $ 15,027  $ 14,444  $ 14,447
Charge-offs  (304)  (538)  (484)  (501)  (1,164)
Recoveries  104  43  160  125  161
Net charge-offs  (200)  (495)  (324)  (376)  (1,003)
Provision for loan and lease losses  (100)  750  812  959  1,000
Balance, end of period  $ 15,470  $ 15,770  $ 15,515  $ 15,027  $ 14,444
           
Allowance for loan and lease losses / loans and leases 0.96% 1.01% 1.00% 1.00% 1.01%
Allowance for loan and lease losses / nonperforming loans and leases 184.4% 154.1% 147.3% 141.6% 137.7%
           
           
  For The Three Months Ended or As Of
  June 30, March 31, December 31, September 30, June 30,
  2014 2014 2013 2013 2013
Selected ratios (annualized):          
           
Return on average assets 1.45% 1.32% 1.26% 1.29% 1.28%
Return on average shareholders' equity 12.80% 11.71% 11.67% 11.92% 11.90%
Return on average tangible equity (2) 16.31% 15.10% 15.35% 15.89% 16.00%
Tax-equivalent yield on loans and leases 5.00% 5.00% 5.02% 5.08% 5.13%
Tax-equivalent yield on interest-earning assets 4.34% 4.32% 4.33% 4.33% 4.27%
Cost of interest-bearing funds 0.42% 0.42% 0.40% 0.38% 0.39%
Tax-equivalent net interest margin 4.03% 4.02% 4.03% 4.05% 3.98%
Book value per share  $ 17.74  $ 17.24  $ 16.84  $ 16.07  $ 15.71
Tangible book value per share  $ 14.03  $ 13.47  $ 13.02  $ 12.17  $ 11.75
Shares outstanding at end of period  13,720,738  13,656,979  13,650,354  13,551,438  13,528,078
           
Selected data:          
           
Mortgage loans originated  $ 39,575  $ 17,892  $ 37,190  $ 40,426  $ 55,066
           
Residential mortgage loans sold - servicing retained  $ 15,154  $ 9,086  $ 12,523  $ 17,768  $ 46,209
Residential mortgage loans sold - servicing released  --  152  531  --  347
Total residential mortgage loans sold  $ 15,154  $ 9,238  $ 13,054  $ 17,768  $ 46,556
           
Yield on residential mortgage loans sold 3.54% 3.51% 4.05% 3.25% 3.20%
           
Loans serviced for others (includes residential mortgage, commercial mortgage and commercial & industrial)  $ 622,808  $ 618,348  $ 628,879  $ 627,058  $ 623,498
           
           
Total wealth assets under management, administration, supervision and brokerage (1)  $ 7,569,842  $ 7,361,977  $ 7,268,273  $ 7,082,926  $ 6,854,838
           
(1) Brokerage assets represent assets held at a registered broker dealer under a networking agreement.
(2) Average tangible equity equals average shareholders' equity minus average goodwill and average other intangible assets.
           
             
Investment Portfolio - Available for Sale As of June 30, 2014 As of December 31, 2013
             
      Net     Net
  Amortized Fair Unrealized Amortized Fair Unrealized
SECURITY DESCRIPTION Cost Value Gain / (Loss) Cost Value Gain / (Loss)
             
U.S. Treasury securities  $ 102  $ 101  $ (1)  $ 102  $ 99  $ (3)
Obligations of the U.S. Government and agencies  63,623  63,337  (286)  71,097  69,568  (1,529)
State & political subdivisions  35,865  35,993  128  37,140  36,977  (163)
Mortgage-backed securities  109,045  111,005  1,960  119,044  119,363  319
Collateralized mortgage obligations  39,674  39,834  160  44,463  44,243  (220)
Other debt securities  1,900  1,900  --  1,900  1,887  (13)
Bond mutual funds  11,956  12,004  48  11,456  11,457  1
Other investments  1,874  2,228  354  1,925  2,214  289
Total investment portfolio available for sale  $ 264,039  $ 266,402  $ 2,363  $ 287,127  $ 285,808  $ (1,319)
             
             
Capital Ratios            
  Regulatory Minimum          
  To Be June 30, March 31, December 31, September 30, June 30,
Bryn Mawr Trust Company Well Capitalized 2014 2014 2013 2013 2013
             
Tier I capital to risk weighted assets ("RWA") 6.00% 11.68% 11.65% 11.40% 11.36% 11.58%
Total (Tier II) capital to RWA 10.00% 12.62% 12.63% 12.38% 12.33% 12.55%
Tier I leverage ratio 5.00% 9.51% 9.43% 9.14% 9.22% 9.07%
Tangible equity ratio N/A 9.18% 9.18% 8.78% 8.32% 8.29%
             
Bryn Mawr Bank Corporation            
             
Tier I capital to RWA 6.00% 11.85% 11.71% 11.57% 11.33% 11.47%
Total (Tier II) capital to RWA 10.00% 12.79% 12.69% 12.55% 12.30% 12.44%
Tier I leverage ratio 5.00% 9.67% 9.50% 9.29% 9.22% 9.00%
Tangible equity ratio N/A 9.32% 9.23% 8.92% 8.30% 8.21%
             
FOR MORE INFORMATION CONTACT:

Ted Peters, Chairman, CEO
610-581-4800
J. Duncan Smith, CFO
610-526-2466