Bryn Mawr Bank Corporation Reports Earnings of $6.5 Million, Declares Dividend of $0.19, Shareholders Approve Continental Merger


BRYN MAWR, Pa., Oct. 23, 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 $6.5 million and diluted earnings per share of $0.47 for the three months ended September 30, 2014, as compared to net income of $6.4 million and diluted earnings per share of $0.47 for the same period in 2013. Net income for the three months ended September 30, 2014 included pre-tax due diligence and merger-related expenses of $775 thousand as compared to $328 thousand for the same period in 2013.

Significant factors contributing to the results for the three months ended September 30, 2014, as compared to the same period in 2013, included increases in net interest income and wealth management revenues, along with a decrease in provision for loan and lease losses between periods. These improvements were largely offset by an increase in the due diligence and merger-related expenses.

"We are pleased with our continued strong financial results," commented Ted Peters, Chairman and Chief Executive Officer. "Our credit quality remains excellent and loan growth continues to be healthy. We are looking forward to a solid fourth quarter and another record year of earnings," he added.

The pending merger with Continental Bank Holdings, Inc. ("CBH"), which has received the necessary regulatory approvals and which recently received shareholder approval from both institutions, is progressing as planned. Frank Leto, President and Chief Operating Officer commented, "As the CBH merger approaches its completion, we are very proud of all the long hours and hard work put in by the teams from both organizations and look forward to a successful integration of the institutions."

On October 23, 2014, the Board of Directors of the Corporation declared a quarterly dividend of $0.19 per share, payable December 1, 2014 to shareholders of record as of November 4, 2014.

SIGNIFICANT ITEMS OF NOTE

Results of Operations – 3rd Quarter 2014 Compared to 3rd Quarter 2013

  • Net income of $6.5 million for the three months ended September 30, 2014 increased $105 thousand, or 1.6%, from $6.4 million for the same period in 2013.
     
  • Net interest income for the three months ended September 30, 2014 was $19.2 million, an increase of $643 thousand, or 3.5%, from $18.5 million for the same period in 2013. The increase in net interest income between the periods was largely the result of a $165.9 million, or 11.3%, increase in average portfolio loans for the three months ended September 30, 2014 as compared to the same period in 2013. Partially offsetting this loan growth was a decrease in average available for sale investment securities of $58.9 million for the three months ended September 30, 2014 as compared to the same period in 2013. In addition to the decrease in the investment portfolio, average long-term borrowings increased by $71.3 million, or 43.5% for the three months ended September 30, 2014 as compared to the same period in 2013. Cash flows from available for sale investment securities and long-term FHLB advances were utilized to fund the loan growth between the periods.
     
  • The tax-equivalent net interest margin of 3.87% for the three months ended September 30, 2014 was an 18 basis point decrease from 4.05% for the same period in 2013. The decrease was primarily the result of a 27 basis point decline in yield on portfolio loans and a 5 basis point increase in rate paid on interest-bearing liabilities. The decline in yield on portfolio loans was related to the impact of fair value accounting for acquired loans, which increased the tax-equivalent yield on loans during the three months ended September 30, 2014 by 12 basis points, as compared to a 23 basis point increase for the same period in 2013. Lessening the impact of these unfavorable yield and rate changes was a $151.1 million increase in average interest-earning assets offset by a $99.4 million increase in interest-bearing liabilities for the three months ended September 30, 2014 as compared to the same period in 2013.
     
  • Non-interest income for the three months ended September 30, 2014 increased $156 thousand as compared to the same period in 2013. A $464 thousand increase in wealth management revenue during the three months ended September 30, 2014 was partially offset by decreases of $138 thousand in net gain on sale of residential mortgage loans and $112 thousand in other operating income. Wealth Management Division assets under management, administration, supervision and brokerage as of September 30, 2014 were $7.6 billion, an increase of $498 million, or 7.0%, from September 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 September 30, 2014 increased $638 thousand, to $20.0 million, as compared to $19.3 million for the same period in 2013. Largely contributing to the increase was a $447
  • thousand increase in due diligence and merger-related expenses related to the pending completion of the merger with CBH. In addition to the increase in merger costs, increases in occupancy expenses were largely offset by decreases in employee benefits and other operating expenses.
     
  • Nonperforming loans and leases of $8.3 million as of September 30, 2014 were 0.51% of total portfolio loans and leases, as compared to $10.6 million, or 0.71% of total portfolio loans and leases as of September 30, 2013. For the three months ended September 30, 2014, the Corporation recorded net loan and lease charge-offs of $421 thousand, as compared to $376 thousand for the same period in 2013. The provision for loan and lease losses for the three month periods ended September 30, 2014 was $550 thousand, as compared to $959 thousand for the same period in 2013.

Results of Operations – 3rd Quarter 2014 Compared to the 2nd Quarter 2014

  • Net income of $6.5 million for the three months ended September 30, 2014 decreased $1.1 million, or 14.4%, from $7.6 million for the three months ended June 30, 2014.
     
  • Net interest income for the three months ended September 30, 2014 was $19.2 million, a decrease of $266 thousand, or 1.4%, from $19.4 million for the three months ended June 30, 2014. A $31.1 million increase in average interest-earning assets was partially offset by an $11.9 million increase in average interest-bearing liabilities between periods. However, the yield earned in interest-earning assets declined by 16 basis points between periods, which caused the decrease in net interest income.
     
  • The tax-equivalent net interest margin of 3.87% for the three months ended September 30, 2014 was a 16 basis point decrease from 4.03% for the three months ended June 30, 2014. The majority of this decline was related to the 19 basis point decrease in yield earned on portfolio loans. The decline in yield on portfolio loans was related to the impact of fair value accounting for acquired loans, which increased the tax-equivalent yield on loans during the three months ended September 30, 2014 by 12 basis points, as compared to a 24 basis point increase for the three months ended June 30, 2014.
     
  • Non-interest income for the three months ended September 30, 2014 decreased $1.2 million as compared to the three months ended June 30, 2014. Contributing to this decrease between periods was a $400 thousand decrease in wealth management revenue, a $269 thousand decrease in gain on sale of other real estate owned ("OREO") and a $375 thousand decrease in other operating income. Wealth management revenue during the three months ended June 30, 2014 included fees related to tax work performed during the federal tax filing period. This work was not repeated during the three months ended September 30, 2014. During the three months ended September 30, 2014, the Corporation recorded a net loss on sale of OREO of $49 thousand as compared to a net gain on sale of $220 thousand for the three months ended June 30, 2014. Other operating income was reduced by $86 thousand in losses recorded on trading securities during the three months ended September 30, 2014, as compared to a gain of $148 thousand recorded during three months ended June 30, 2014. The Corporation's trading portfolio is wholly comprised of assets held for certain deferred compensation trusts, whose changes in market value are offset by corresponding charges or credits to deferred compensation expense.
     
  • Non-interest expense for the three months ended September 30, 2014 decreased $665 thousand, to $20.0 million, as compared to $20.6 million for the three months ended June 30, 2014. The decrease between the periods was largely related to a decrease of $741 thousand in salaries and employee benefits. The decrease in salaries and employee benefits was related to lower levels of incentive and bonus accruals during the third quarter of 2014 as compared to the second quarter of 2014. In addition, severance compensation recorded during the second quarter of 2014 was not present during the third quarter of 2014. Partially offsetting this decrease was a $398 thousand increase in due diligence and merger-related costs associated with the pending merger with CBH.
     
  • Nonperforming loans and leases of $8.3 million as of September 30, 2014 were 0.51% of total portfolio loans and leases, as compared to $8.4 million, or 0.52% of total portfolio loans and leases as of June 30, 2014. For the three months ended September 30, 2014, the Corporation recorded net loan and lease charge-offs of $421 thousand, as compared to $200 thousand for the three months ended June 30, 2014. The provision for loan and lease losses for the three month periods ended September 30, 2014 was $550 thousand, as compared to a $100 thousand release from the allowance for loan and lease losses (the "Allowance") for the three months ended June 30, 2014, an increase of $650 thousand.

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

  • Total portfolio loans and leases of $1.65 billion as of September 30, 2014 increased by $98.1 million, or 6.3%, 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 September 30, 2014 was $15.6 million, or 0.95%, of portfolio loans as compared to $15.5 million, or 1.00% of portfolio loans and leases, as of December 31, 2013.
     
  • Total assets as of September 30, 2014 were $2.12 billion, an increase of $62.2 million from December 31, 2013. Loan originations, partially offset by decreases in available for sale investment securities and interest-bearing deposits with other banks, accounted for the majority of this increase, with funding for loan originations provided by increased deposits and borrowings.
     
  • Deposits of $1.61 billion, as of September 30, 2014, increased $19.0 million from December 31, 2013. The increase was comprised of a $25.5 million increase in wholesale time deposits, an $11.6 million increase in non-interest-bearing deposits and a $13.1 million increase in savings and money market accounts. These increases were partially offset by decreases of $19.6 million and $9.9 million in retail time deposits and NOW accounts, respectively, between the December 31, 2013 and September 30, 2014.
     
  • 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 9.21% and 9.58%, respectively, at September 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 December 31, 2013 and September 30, 2014.

EARNINGS CONFERENCE CALL

The Corporation will hold an earnings conference call at 8:30 AM EDT on Friday, October 24, 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 Tuesday, November 4, 2014. A recording of the earnings conference call may be obtained by calling 1-877-344-7529, referring to conference number 10053617.

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/bmtc141024.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  
  September 30, June 30, March 31, December 31, September 30,  
  2014 2014 2014 2013 2013  
             
Interest income  $ 20,749  $ 20,941  $ 20,161  $ 20,525  $ 19,820  
Interest expense  1,573  1,499  1,438  1,400  1,287  
             
Net interest income  19,176  19,442  18,723  19,125  18,533  
Provision for loan and lease losses  550  (100)  750  812  959  
Net interest income after provision for loan and lease losses  18,626  19,542  17,973  18,313  17,574  
             
Fees for wealth management services   9,099  9,499  8,913  9,106  8,635  
Loan servicing and other fees  431  428  446  465  481  
Service charges on deposits  663  656  601  638  627  
Net gain on sale of residential mortgage loans  440  537  324  529  578  
Net gain (loss) on sale of investment securities available for sale  --  85  (4)  (10)  --  
Net (loss) gain on sale of other real estate owned  (49)  220  --  (106)  (1)  
Bank owned life insurance income  76  74  81  88  72  
Other operating income  883  1,258  778  1,525  995  
Non-interest income  11,543  12,757  11,139  12,235  11,387  
             
Salaries and wages   9,110  9,694  8,440  9,438  9,012  
Employee benefits   1,652  1,809  1,979  2,399  1,896  
Occupancy and bank premises  1,881  1,683  1,933  1,738  1,646  
Furniture fixtures and equipment  1,078  1,089  983  1,017  920  
Advertising  310  455  339  431  303  
Net (recovery) impairment of mortgage servicing rights  (3)  (3)  (8)  (10)  33  
Amortization of mortgage servicing rights  128  128  115  123  187  
Amortization of intangible assets  633  636  637  655  657  
FDIC insurance  265  242  271  259  271  
Due diligence and merger-related expenses  775  377  264  155  328  
Professional fees  701  914  593  581  636  
Pennsylvania bank shares tax  412  412  368  274  139  
Other operating expenses   3,019  3,190  2,985  3,598  3,295  
Non-interest expense  19,961  20,626  18,899  20,658  19,323  
             
Income before income taxes  10,208  11,673  10,213  9,890  9,638  
Income tax expense   3,702  4,069  3,524  3,419  3,237  
Net income   $ 6,506  $ 7,604  $ 6,689  $ 6,471  $ 6,401  
             
Per share data:            
Weighted average shares outstanding  13,600,355  13,531,170  13,485,213  13,419,269  13,336,799  
Dilutive common shares  272,516  304,998  304,828  308,674  275,343  
Adjusted weighted average dilutive shares   13,872,871  13,836,168  13,790,041  13,727,943  13,612,142  
             
Basic earnings per common share $0.48 $0.56 $0.50 $0.48 $0.48  
             
Diluted earnings per common share $0.47 $0.55 $0.49 $0.47 $0.47  
             
Dividend declared per share $0.19 $0.18 $0.18 $0.18 $0.17  
             
Effective tax rate 36.3% 34.9% 34.5% 34.6% 33.6%  
             
Supplemental Non-GAAP Performance Measures* (Includes Reconciliation of Non-GAAP to GAAP Performance Measures)  
Net income (a GAAP measure)  $ 6,506  $ 7,604  $ 6,689  $ 6,471  $ 6,401  
add: tax-effected** due diligence and merger-related expenses  504  245  172  101  213  
Net income excluding tax-effected** due diligence and merger-related expenses (a non-GAAP measure)  7,010  7,849  6,861  6,572  6,614  
Basic earnings per common share excluding tax-effected** due diligence and merger-related expenses (a non-GAAP measure)  $ 0.52  $ 0.58  $ 0.51  $ 0.49  $ 0.50  
Diluted earnings per common share excluding tax-effected** due diligence and merger-related expenses (a non-GAAP measure)  $ 0.51  $ 0.57  $ 0.50  $ 0.48  $ 0.49  
             
*The Corporation believes the presentation of the above non-GAAP financial measure provides useful supplemental information that is essential to an investor's proper understanding of the results of operations of the Corporation. Management uses this non-GAAP financial measure in its analysis of the Corporation's performance. This non-GAAP disclosure should not be viewed as a substitute for the financial measure determined in accordance with GAAP, nor is it necessarily comparable to a non-GAAP performance measure that may be presented by other companies  
** assumed nominal tax rate of 35%  
     
     
Bryn Mawr Bank Corporation    
Consolidated Statements of Income - (unaudited)    
(dollars in thousands, except per share data)    
   
  For The Nine Months Ended September 30,
  2014 2013
     
Interest income  $ 61,851  $ 57,892
Interest expense  4,510  4,027
     
Net interest income  57,341  53,865
Provision for loan and lease losses  1,200  2,763
Net interest income after provision for loan and lease losses  56,141  51,102
     
Fees for wealth management services   27,511  26,078
Loan servicing and other fees  1,305  1,380
Service charges on deposits  1,920  1,807
Net gain on sale of residential mortgage loans  1,301  3,588
Net gain on sale of investment securities available for sale  81  2
Net gain (loss) on sale of other real estate owned  171  (194)
Bank owned life insurance income  231  270
Other operating income  2,919  3,189
Non-interest income  35,439  36,120
     
Salaries and wages   27,244  26,908
Employee benefits   5,440  6,433
Net gain on curtailment of nonqualified pension plan  --  (690)
Occupancy and bank premises  5,497  5,124
Furniture fixtures and equipment  3,150  2,960
Advertising  1,104  1,095
Net (recovery) impairment of mortgage servicing rights  (14)  13
Amortization of mortgage servicing rights  371  617
Amortization of intangible assets  1,906  1,978
FDIC insurance  778  804
Due diligence and merger-related expenses  1,416  1,730
Professional fees  2,208  1,875
Early extinguishment of debt - costs and premiums  --  347
Pennsylvania bank shares tax  1,192  669
Other operating expenses  9,194  10,219
Non-interest expense  59,486  60,082
     
Income before income taxes  32,094  27,140
Income tax expense  11,295  9,167
Net income  $ 20,799  $ 17,973
     
Per share data:    
Weighted average shares outstanding  13,539,329  13,274,801
Dilutive common shares  294,114  244,302
Adjusted weighted average shares   13,833,443  13,519,103
     
Basic earnings per common share $1.54 $1.35
     
Diluted earnings per common share $1.50 $1.33
     
Dividend declared per share $0.55 $0.51
     
Effective tax rate 35.2% 33.8%
     
Supplemental Non-GAAP Performance Measures* (Includes Reconciliation of Non-GAAP to GAAP Performance Measures)
Net income (a GAAP measure)  $ 20,799  $ 17,973
add: tax-effected** due diligence and merger-related expenses  1,435  1,219
Net income excluding tax-effected** due diligence and merger-related expenses (a non-GAAP measure)  22,234  19,192
Basic earnings per common share excluding tax-effected** due diligence and merger-related expenses (a non-GAAP measure)  $ 1.64  $ 1.45
Diluted earnings per common share excluding tax-effected** due diligence and merger-related expenses (a non-GAAP measure)  $ 1.61  $ 1.42
     
*The Corporation believes the presentation of the above non-GAAP financial measure provides useful supplemental information that is essential to an investor's proper understanding of the results of operations of the Corporation. Management uses this non-GAAP financial measure in its analysis of the Corporation's performance. This non-GAAP disclosure should not be viewed as a substitute for the financial measure determined in accordance with GAAP, nor is it necessarily comparable to a non-GAAP performance measure that may be presented by other companies
** assumed nominal tax rate of 35%
           
Bryn Mawr Bank Corporation          
Consolidated Balance Sheets - (unaudited)       
(dollars in thousands)          
         
           
  September 30, June 30, March 31, December 31, September 30,
  2014 2014 2014 2013 2013
Assets          
           
Interest-bearing deposits with banks  $ 56,253  $ 85,946  $ 59,248  $ 67,618  $ 71,203
Investment securities - available for sale  265,939  266,402  272,599  285,808  319,917
Investment securities - trading  3,803  3,597  3,517  3,437  2,357
Loans held for sale  1,375  1,631  1,340  1,350  1,284
Portfolio loans:          
Consumer  16,810  18,907  18,104  16,926  17,572
Commercial & industrial  342,524  334,474  334,295  328,459  303,259
Commercial mortgages  683,558  666,924  640,574  625,341  622,771
Construction   59,923  55,051  44,060  46,369  39,055
Residential mortgages  314,127  310,491  301,532  300,243  291,645
Home equity lines & loans  183,314  185,593  186,277  189,571  187,634
Leases  44,982  44,102  40,988  40,276  38,079
Total portfolio loans and leases  1,645,238  1,615,542  1,565,830  1,547,185  1,500,015
           
Earning assets  1,972,608  1,973,118  1,902,534  1,905,398  1,894,776
           
Cash and due from banks  11,312  17,018  14,696  13,453  24,958
Allowance for loan and lease losses  (15,599)  (15,470)  (15,770)  (15,515)  (15,027)
Premises and equipment   32,733  32,679  32,473  31,796  31,436
Accrued interest receivable   5,661  5,526  5,687  5,728  5,703
Mortgage servicing rights  4,796  4,760  4,734  4,750  4,744
Goodwill  32,843  32,843  32,843  32,843  32,843
Other intangible assets  17,459  18,092  18,728  19,365  20,020
Bank owned life insurance  20,451  20,375  20,301  20,220  20,132
FHLB stock  12,889  12,775  11,911  11,654  12,590
Deferred income taxes  5,786  5,984  7,517  8,690  11,955
Other investments  4,592  4,507  4,392  4,437  4,337
Other assets  18,351  19,018  19,770  18,846  10,506
           
Total assets  $ 2,123,882  $ 2,131,225  $ 2,059,816  $ 2,061,665  $ 2,058,973
           
Liabilities and shareholders' equity          
           
Interest-bearing deposits:          
Interest-bearing checking  $ 256,890  $ 263,247  $ 269,409  $ 266,787  $ 244,826
Money market  550,238  559,070  556,076  544,310  548,011
Savings  142,364  145,312  141,979  135,240  137,431
Wholesale non-maturity deposits  41,290  41,840  42,704  42,937  57,195
Wholesale time deposits  60,171  50,152  34,104  34,639  23,127
Time deposits   121,158  123,572  130,983  140,794  145,119
Total interest-bearing deposits  1,172,111  1,183,193  1,175,255  1,164,707  1,155,709
           
Non-interest-bearing deposits  438,221  436,739  404,340  426,640  394,947
Total deposits  1,610,332  1,619,932  1,579,595  1,591,347  1,550,656
           
Long-term FHLB advances and other borrowings  230,574  233,132  214,640  205,644  191,645
Short-term borrowings  13,980  13,320  10,739  10,891  75,588
Other liabilities  21,387  21,470  19,365  23,885  23,323
Shareholders' equity  247,609  243,371  235,477  229,898  217,761
           
Total liabilities and shareholders' equity  $ 2,123,882  $ 2,131,225  $ 2,059,816  $ 2,061,665  $ 2,058,973
         
         
Bryn Mawr Bank Corporation        
Consolidated Quarterly Average Balance Sheets - (unaudited)        
(dollars in thousands)          
   For The Three Months Ended
  September 30, June 30, March 31, December 31, September 30,
  2014 2014 2014 2013 2013
Assets          
           
Interest-bearing deposits with banks  $ 78,324  $ 70,775  $ 67,809  $ 56,569  $ 35,589
Investment securities - available for sale  265,491  271,830  281,572  310,183  324,418
Investment securities - trading  3,599  3,518  3,438  2,368  2,182
Loans held for sale  1,116  1,280  504  1,197  867
Portfolio loans and leases   1,629,102  1,599,104  1,549,161  1,522,408  1,463,492
Earning assets  1,977,632  1,946,507  1,902,484  1,892,725  1,826,548
           
Cash and due from banks  12,739  12,067  12,302  13,132  12,497
Allowance for loan and lease losses  (15,672)  (16,073)  (15,761)  (15,226)  (14,653)
Premises and equipment  32,763  32,829  32,358  31,770  31,216
Goodwill  32,843  32,843  32,843  32,843  32,843
Other intangible assets  17,821  18,459  19,095  19,741  20,400
Bank owned life insurance  20,402  20,327  20,252  20,163  20,086
FHLB stock  12,864  12,663  11,915  12,242  12,809
Deferred income taxes  5,926  7,119  7,908  11,733  11,946
Other assets  30,491  29,750  29,940  22,288  21,904
           
Total assets  $ 2,127,809  $ 2,096,491  $ 2,053,336  $ 2,041,411  $ 1,975,596
           
Liabilities and shareholders' equity          
           
Interest-bearing deposits:          
Interest-bearing checking  $ 255,601  $ 264,087  $ 263,612  $ 248,722  $ 249,982
Money market  565,803  556,241  545,108  548,351  559,911
Savings  143,877  143,418  137,812  137,327  135,070
Wholesale non-maturity deposits  43,256  42,970  41,828  48,465  47,804
Wholesale time deposits  54,976  48,791  35,133  22,735  10,911
Time deposits  121,986  127,167  134,574  142,258  152,788
Total interest-bearing deposits  1,185,499  1,182,674  1,158,067  1,147,858  1,156,466
           
Non-interest bearing deposits  426,883  416,104  415,514  420,072  402,292
Total deposits  1,612,382  1,598,778  1,573,581  1,567,930  1,558,758
           
Long-term FHLB advances and other borrowings  235,091  222,851  212,405  204,780  163,818
Short-term borrowings  14,074  17,220  13,090  25,364  14,995
Other liabilities  22,298  19,368  22,546  23,401  24,904
Shareholders' equity  243,964  238,274  231,714  219,936  213,121
           
Total liabilities and shareholders' equity  $ 2,127,809  $ 2,096,491  $ 2,053,336  $ 2,041,411  $ 1,975,596
   
   
Bryn Mawr Bank Corporation  
Consolidated Year-to-Date Average Balance Sheets - (unaudited)       
(dollars in thousands)      
       
       
  For The Nine Months Ended September 30,  
  2014 2013  
Assets      
       
Interest bearing deposits with banks  $ 72,341  $ 70,681  
Investment securities - available for sale  272,906  324,469  
Investment securities - trading  3,519  2,017  
Loans held for sale  969  1,909  
Portfolio loans and leases  1,592,749  1,430,351  
Earning assets  1,942,484  1,829,427  
       
Cash and due from banks  12,371  12,884  
Allowance for loan and lease losses  (15,835)  (14,657)  
Premises and equipment  32,652  31,294  
Goodwill  32,843  32,878  
Intangible assets  18,454  21,055  
Bank owned life insurance  20,327  19,999  
FHLB stock  12,508  11,760  
Deferred income taxes  6,977  11,708  
 Other assets  30,037  22,344  
       
Total assets  $ 2,092,818  $ 1,978,692  
       
Liabilities and shareholders' equity      
       
Interest-bearing deposits:      
Interest-bearing checking  $ 261,071  $ 260,180  
Money market  555,793  569,159  
Savings  141,724  133,910  
Wholesale non-maturity deposits  42,690  39,238  
Wholesale time deposits  46,373  11,337  
Time deposits  127,863  169,184  
Total interest-bearing deposits  1,175,514  1,183,008  
       
Non-interest-bearing deposits  419,542  393,576  
Total deposits  1,595,056  1,576,584  
       
Long-term FHLB advances and other borrowings  223,532  154,386  
Short-term borrowings  14,798  13,455  
Other liabilities  21,403  24,874  
Shareholders' equity  238,029  209,393  
       
Total liabilities and shareholders' equity  $ 2,092,818  $ 1,978,692  
 
 
Bryn Mawr Bank Corporation
Quarterly Average Balances and Tax-Equivalent Interest Income and Expense and Tax-Equivalent Yields - (unaudited)
                               
   
  For The Three Months Ended
  September 30, 2014 June 30, 2014 March 31, 2014 December 31, 2013 September 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  $ 78,324  $ 46 0.23%  $ 70,775  $ 44 0.25%  $ 67,809  $ 37 0.22%  $ 56,569  $ 27 0.19%  $ 35,589  $ 21 0.23%
Investment securities - available for sale:                              
Taxable 230,457 884 1.52% 235,853 903 1.54% 245,006 972 1.61% 271,152 1,127 1.65% 284,558 988 1.38%
Tax-exempt 35,034 149 1.69% 35,977 151 1.68% 36,566 153 1.70% 39,031 159 1.62% 39,860 159 1.58%
Total investment securities - available for sale  265,491 1,033 1.54% 271,830 1,054 1.56% 281,572 1,125 1.62% 310,183 1,286 1.64% 324,418 1,147 1.40%
                               
Investment securities - trading 3,599 9 0.99% 3,518 17 1.94% 3,438 7 0.83% 2,368 51 8.54% 2,182 7 1.27%
                               
Loans and leases * 1,630,218 19,767 4.81% 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%
                               
Total interest-earning assets  1,977,632 20,855 4.18% 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%
                               
Cash and due from banks 12,739     12,067     12,302     13,132     12,497    
Less allowance for loan and lease losses (15,672)     (16,073)     (15,761)     (15,226)     (14,653)    
Other assets  153,110     153,990     154,311     150,780     151,204    
                               
Total assets  $ 2,127,809      $ 2,096,491      $ 2,053,336      $ 2,041,411      $ 1,975,596    
                               
Liabilities:                              
                               
Interest-bearing deposits:                              
Savings, NOW and market rate deposits  $ 965,281  $ 430 0.18%  $ 963,746  $ 420 0.17%  $ 946,532  $ 405 0.17%  $ 934,400  $ 414 0.18%  $ 944,963  $ 419 0.18%
Wholesale deposits 98,232 175 0.71% 91,761 147 0.64% 76,961 114 0.60% 71,200 85 0.47% 58,715 55 0.37%
Time deposits  121,986 137 0.45% 127,167 146 0.46% 134,574 170 0.51% 142,258 151 0.42% 152,788 165 0.43%
Total interest-bearing deposits 1,185,499 742 0.25% 1,182,674 713 0.24% 1,158,067 689 0.24% 1,147,858 650 0.22% 1,156,466 639 0.22%
                               
Borrowings:                              
Short-term borrowings 14,074 3 0.08% 17,220 5 0.12% 13,090 3 0.09% 25,364 12 0.19% 14,995 5 0.13%
Long-term FHLB advances and other borrowings 235,091 828 1.40% 222,851 781 1.41% 212,405 746 1.42% 204,780 738 1.43% 163,818 643 1.56%
Total borrowings 249,165 831 1.32% 240,071 786 1.31% 225,495 749 1.35% 230,144 750 1.29% 178,813 648 1.44%
                               
Total interest-bearing liabilities 1,434,664 1,573 0.43% 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%
                               
Noninterest-bearing deposits 426,883     416,104     415,514     420,072     402,292    
Other liabilities 22,298     19,368     22,546     23,401     24,904    
Total noninterest-bearing liabilities 449,181     435,472     438,060     443,473     427,196    
                               
Total liabilities 1,883,845     1,858,217     1,821,622     1,821,475     1,762,475    
                               
Shareholders' equity  243,964     238,274     231,714     219,936     213,121    
                               
Total liabilities and shareholders' equity   $ 2,127,809      $ 2,096,491      $ 2,053,336      $ 2,041,411      $ 1,975,596    
                               
Interest income to earning assets     4.18%     4.34%     4.32%     4.33%     4.33%
                               
Net interest spread     3.75%     3.92%     3.90%     3.93%     3.95%
Effect of noninterest-bearing sources     0.12%     0.11%     0.12%     0.10%     0.10%
                               
Tax-equivalent net interest income/ margin on earning assets    $ 19,282 3.87%    $ 19,552 4.03%    $ 18,838 4.02%    $ 19,241 4.03%    $ 18,643 4.05%
                               
Tax-equivalent adjustment     $ 106 0.02%    $ 110 0.02%    $ 115 0.02%    $ 116 0.02%    $ 110 0.02%
                               
Supplemental Information Regarding Accretion of Fair Value Marks
Accretion of fair value marks on loans    $ 516      $ 941      $ 761      $ 879      $ 860  
Accretion of fair value marks on time deposits    6      6      7      49      71  
Accretion of fair value marks on borrowings    30      30      30      30      30  
Net interest income from fair value marks    $ 552      $ 977      $ 798      $ 958      $ 961  
Effect of fair value mark accretion on tax-equivalent net interest margin   0.11%     0.20%     0.17%     0.20%     0.21%  
* 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 Nine Months Ended September 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  $ 72,341  127 0.23%  $ 70,681  131 0.25%
Investment securities available for sale:            
Taxable  237,053  2,759 1.56%  286,964  2,721 1.27%
Tax-exempt  35,853  453 1.69%  37,505  429 1.53%
             
Investment securities - available for sale  272,906  3,212 1.57%  324,469  3,150 1.30%
             
Investment securities - trading  3,519  33 1.25%  2,017  23 1.52%
             
Loans and leases *  1,593,718  58,810 4.93%  1,432,260  54,902 5.13%
             
Total interest earning assets  1,942,484  62,182 4.28%  1,829,427  58,206 4.25%
             
Cash and due from banks  12,371      12,884    
Less allowance for loan and lease losses  (15,835)      (14,657)    
Other assets   153,798      151,038    
             
Total assets $ 2,092,818     $ 1,978,692    
             
Liabilities:            
             
Savings,NOW and market rate deposits $ 958,588  $ 1,254 0.17% $ 963,249  $ 1,343 0.19%
Wholesale deposits  89,063  437 0.66%  50,575  153 0.40%
Time deposits  127,863  453 0.47%  169,184  613 0.48%
Total interest-bearing deposits $ 1,175,514  2,144 0.24% $ 1,183,008  2,109 0.24%
             
Short-term borrowings  14,798  12 0.11%  154,386  1,906 1.65%
Long-term FHLB advances and other borrowings  223,532  2,354 1.41%  13,455  12 0.12%
Total Borrowings  238,330  2,366 1.33%  167,841  1,918 1.53%
             
Total interest-bearing liabilities  1,413,844  4,510 0.43%  1,350,849  4,027 0.40%
             
             
Noninterest-bearing deposits  419,542      393,576    
Other liabilities   21,403      24,874    
Total noninterest-bearing liabilities  440,945      418,450    
             
Total liabilities   1,854,789      1,769,299    
             
Shareholders' equity   238,029      209,393    
             
Total liabilities and shareholders' equity  $ 2,092,818      $ 1,978,692    
             
Interest income to earning assets     4.28%     4.25%
             
Net interest spread     3.85%     3.85%
Effect of noninterest-bearing sources     0.12%     0.11%
             
Tax-equivalent net interest income/ margin on earning assets    $ 57,672 3.97%    $ 54,179 3.96%
             
Tax-equivalent adjustment     $ 331 0.02%    $ 314 0.02%
             
Supplemental Information Regarding Accretion of Fair Value Marks
Accretion of fair value marks on loans    $ 2,218      $ 2,185  
Accretion of fair value marks on time deposits    19      300  
Accretion of fair value marks on borrowings    91      120  
Net interest income from fair value marks    $ 2,328      $ 2,605  
Effect of fair value mark accretion on tax-equivalent net interest margin   0.16%     0.19%  
* 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 lease 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
  September 30, June 30, March 31, December 31, September 30,
  2014 2014 2014 2013 2013
Asset Quality Data          
           
Nonaccrual loans and leases  $ 8,336  $ 8,388  $ 10,236  $ 10,530  $ 10,613
90 days or more past due loans, still accruing  --  --  --  --  --
Nonperforming loans and leases  8,336  8,388  10,236  10,530  10,613
Other real estate owned   894  853  1,040  855  1,253
Total nonperforming assets  $ 9,230  $ 9,241  $ 11,276  $ 11,385  $ 11,866
           
Troubled debt restructurings included in nonperforming assets  $ 1,725  $ 1,597  $ 2,698  $ 1,699  $ 2,628
Troubled debt restructurings in compliance with modified terms  6,913  7,487  6,667  7,277  8,947
Total troubled debt restructurings  $ 8,638  $ 9,084  $ 9,365  $ 8,976  $ 11,575
           
           
Nonperforming loans and leases / portfolio loans & leases 0.51% 0.52% 0.65% 0.68% 0.71%
           
Nonperforming assets / total assets 0.43% 0.43% 0.55% 0.55% 0.58%
           
Net loan and lease charge-offs / average loans and leases (annualized) 0.10% 0.05% 0.13% 0.09% 0.10%
           
Delinquency rate* - Performing and nonperforming loans and leases 30 days or more past due 0.48% 0.64% 0.59% 0.65% 0.68%
           
Performing loans and leases - 30-89 days past due  $ 1,739  $ 3,743  $ 1,815  $ 1,718  $ 1,227
           
Delinquency rate* - Performing loans and leases - 30-89 days past due 0.11% 0.23% 0.12% 0.11% 0.08%
           
* as a percentage of total loans and leases          
           
           
Changes in the allowance for loan and lease losses:          
           
Balance, beginning of period  $ 15,470  $ 15,770  $ 15,515  $ 15,027  $ 14,444
Charge-offs  (493)  (304)  (538)  (484)  (501)
Recoveries  72  104  43  160  125
Net charge-offs  (421)  (200)  (495)  (324)  (376)
Provision for loan and lease losses  550  (100)  750  812  959
Balance, end of period  $ 15,599  $ 15,470  $ 15,770  $ 15,515  $ 15,027
           
Allowance for loan and lease losses / loans and leases 0.95% 0.96% 1.01% 1.00% 1.00%
Allowance for loan and lease losses / nonperforming loans and leases 187.1% 184.4% 154.1% 147.3% 141.6%
           
           
Bryn Mawr Bank Corporation          
Consolidated Selected Financial Data - (unaudited)          
(dollars in thousands, except per share data)           
           
  For The Three Months Ended or As Of
  September 30, June 30, March 31, December 31, September 30,
  2014 2014 2014 2013 2013
Selected ratios (annualized):          
           
Return on average assets 1.21% 1.45% 1.32% 1.26% 1.29%
Return on average shareholders' equity 10.58% 12.80% 11.71% 11.67% 11.92%
Return on average tangible equity (2) 13.35% 16.31% 15.10% 15.35% 15.89%
Tax-equivalent yield on loans and leases 4.81% 5.00% 5.00% 5.02% 5.08%
Tax-equivalent yield on interest-earning assets 4.18% 4.34% 4.32% 4.33% 4.33%
Cost of interest-bearing funds 0.43% 0.42% 0.42% 0.40% 0.38%
Tax-equivalent net interest margin 3.87% 4.03% 4.02% 4.03% 4.05%
Book value per share  $ 18.03  $ 17.74  $ 17.24  $ 16.84  $ 16.07
Tangible book value per share  $ 14.37  $ 14.03  $ 13.47  $ 13.02  $ 12.17
Shares outstanding at end of period  13,731,276  13,719,337  13,656,979  13,650,354  13,551,438
           
Selected data:           
           
Mortgage loans originated  $ 29,861  $ 39,575  $ 17,892  $ 37,190  $ 40,426
           
Residential mortgage loans sold - servicing retained  $ 16,237  $ 15,154  $ 9,086  $ 12,523  $ 17,768
Residential mortgage loans sold - servicing released  539  --  152  531  --
Total residential mortgage loans sold  $ 16,776  $ 15,154  $ 9,238  $ 13,054  $ 17,768
           
Yield on residential mortgage loans sold 2.62% 3.54% 3.51% 4.05% 3.25%
           
Loans serviced for others (includes residential mortgage, commercial mortgage and commercial & industrial)  $ 624,598  $ 622,808  $ 618,348  $ 628,879  $ 627,058
           
           
Total wealth assets under management, administration, supervision and brokerage (1)  $ 7,580,779  $ 7,569,842  $ 7,361,977  $ 7,268,273  $ 7,082,926
           
(1) Brokerage assets represent assets held at a registered broker dealer under a clearing agreement.
(2) Average tangible equity equals average shareholders' equity minus average goodwill and average other intangible assets. 
           
           
           
      For The Nine Months Ended September 30,
      2014   2013
Selected ratios (annualized):          
           
Return on average assets     1.33%   1.21%
Return on average shareholders' equity     11.68%   11.48%
Return on average tangible equity (1)     14.89%   15.46%
Tax-equivalent yield on loans and leases     4.93%   5.13%
Tax-equivalent yield on interest-earning assets     4.28%   4.25%
Cost of interest-bearing liabilities     0.43%   0.40%
Tax-equivalent net interest margin     3.97%   3.96%
           
Selected data:           
           
Residential mortgage loans originated      $ 87,328    $ 160,597
           
Residential mortgage loans sold - servicing retained      $ 40,477    $ 115,391
Residential mortgage loans sold - servicing released      691    536
Total residential mortgage loans sold      $ 41,168    $ 115,927
           
(1) Average tangible equity equals average shareholders' equity minus average goodwill and average other intangible assets. 
               
               
Bryn Mawr Bank Corporation              
Consolidated Selected Financial Data - (unaudited)              
(dollars in thousands, except per share data)               
               
               
Investment Portfolio - Available for Sale As of September 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  $ 100  $ (2)    $ 102  $ 99  $ (3)
Obligations of the U.S. Government and agencies   71,443  71,110  (333)    71,097  69,568  (1,529)
State & political subdivisions  33,555  33,695  140    37,140  36,977  (163)
Mortgage-backed securities  104,670  106,223  1,553    119,044  119,363  319
Collateralized mortgage obligations  37,071  37,110  39    44,463  44,243  (220)
Other debt securities  1,900  1,900  --    1,900  1,887  (13)
Bond mutual funds  11,956  12,029  73    11,456  11,457  1
Other investments  3,527  3,772  245    1,925  2,214  289
Total investment portfolio available for sale  $ 264,224  $ 265,939  $ 1,715    $ 287,127  $ 285,808  $ (1,319)
               
               
               
Capital Ratios              
  Regulatory Minimum            
  To Be September 30, June 30, March 31, December 31, September 30,  
Bryn Mawr Trust Company Well Capitalized 2014 2014 2014 2013 2013  
               
Tier I capital to risk weighted assets ("RWA") 6.00% 11.60% 11.68% 11.65% 11.40% 11.36%  
Total (Tier II) capital to RWA 10.00% 12.54% 12.62% 12.63% 12.38% 12.33%  
Tier I leverage ratio 5.00% 9.39% 9.51% 9.43% 9.14% 9.22%  
Tangible equity ratio N/A 9.21% 9.18% 9.18% 8.78% 8.32%  
               
Bryn Mawr Bank Corporation              
               
Tier I capital to RWA 6.00% 12.05% 11.85% 11.71% 11.57% 11.33%  
Total (Tier II) capital to RWA 10.00% 12.99% 12.79% 12.69% 12.55% 12.30%  
Tier I leverage ratio 5.00% 9.77% 9.67% 9.50% 9.29% 9.22%  
Tangible equity ratio N/A 9.58% 9.32% 9.23% 8.92% 8.30%  


            

Contact Data