BRYN MAWR, Pa., April 19, 2018 (GLOBE NEWSWIRE) -- Bryn Mawr Bank Corporation (NASDAQ:BMTC) (the “Corporation”), parent of The Bryn Mawr Trust Company (the “Bank”) today reported net income of $15.3 million, or $0.75 diluted earnings per share for the three months ended March 31, 2018, as compared to a net loss of $6.2 million, or $(0.35) diluted loss per share, for the three months ended December 31, 2017, and $9.0 million, or $0.53 diluted earnings per share, for the three months ended March 31, 2017.
On a non-GAAP basis, core net income, which excludes due diligence and merger-related expenses, income tax charges related to re-measurement of net deferred tax assets, and certain other non-core income and expense items, as detailed in the appendix to this earnings release, was $19.3 million, or $0.94 diluted earnings per share, for the three months ended March 31, 2018, as compared to $11.3 million, or $0.63 diluted earnings per share, for the three months ended December 31, 2017, and $9.4 million, or $0.55 diluted earnings per share, for the three months ended March 31, 2017. Management believes the core net income measure is important in evaluating the Corporation’s performance on a more comparable basis between periods. A reconciliation of this and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release.
“We are pleased with the solid results posted in the first quarter. Our merger with Royal Bank, which closed at the end of 2017, has already begun to have a significant impact on our bottom line,” stated Frank Leto, President and Chief Executive Officer. “We successfully completed the combination of our banking systems in late February, and with all branch locations now operating under the BMT banner, we are able to offer an expanded range of financial solutions to clients from both institutions,” continued Mr. Leto.
“The strong results we witnessed this quarter included increases in net interest income, wealth management fees, insurance revenues and other operating income, along with the reduced income tax burden as a result of the Tax Cuts and Jobs Act,” added Mr. Leto, continuing, “We are excited about the savings and additional capital that the Tax Reform legislation has and will continue to create. We intend to put some of these benefits to work through investments in our businesses, team members, and the communities we serve. We are actively evaluating investments to further our private banking strategy, enhance our systems to improve client experience and advance the development of our operating platform, all with the goal of increasing shareholder value by positioning ourselves for future growth and performance.”
The Board of Directors of the Corporation declared a quarterly dividend of $0.22 per share, payable June 1, 2018 to shareholders of record as of May 1, 2018.
SIGNIFICANT ITEMS OF NOTE
Results of Operations – First Quarter 2018 Compared to Fourth Quarter 2017
Results of Operations – First Quarter 2018 Compared to First Quarter 2017
Financial Condition – March 31, 2018 Compared to December 31, 2017
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,” “indicate,” “estimate,” “target,” “potentially,” “promising,” “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 inability to successfully integrate acquired businesses, the possibility that integration may take longer than anticipated or be more costly to complete and that the anticipated benefits, including any anticipated cost savings or strategic gains may be significantly harder to achieve or take longer than anticipated or may not be achieved, 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 updated by our quarterly or other reports subsequently filed with the SEC.
Bryn Mawr Bank Corporation | ||||||||||||||||||||
Summary Financial Information (unaudited) | ||||||||||||||||||||
(dollars in thousands, except per share data) | ||||||||||||||||||||
As of or For the Three Months Ended | ||||||||||||||||||||
March 31, 2018 | December 31, 2017 | September 30, 2017 | June 30, 2017 | March 31, 2017 | ||||||||||||||||
Consolidated Balance Sheet (selected items) | ||||||||||||||||||||
Interest-bearing deposits with banks | $ | 24,589 | $ | 48,367 | $ | 36,870 | $ | 30,806 | $ | 69,978 | ||||||||||
Investment securities | 550,199 | 701,744 | 482,399 | 452,869 | 400,360 | |||||||||||||||
Loans held for sale | 5,522 | 3,794 | 6,327 | 8,590 | 3,015 | |||||||||||||||
Portfolio loans and leases | 3,305,795 | 3,285,858 | 2,677,345 | 2,666,651 | 2,555,589 | |||||||||||||||
Allowance for loan and lease losses ("ALLL") | (17,662 | ) | (17,525 | ) | (17,004 | ) | (16,399 | ) | (17,107 | ) | ||||||||||
Goodwill and other intangible assets | 207,287 | 205,855 | 128,534 | 129,211 | 124,629 | |||||||||||||||
Total assets | 4,300,376 | 4,449,720 | 3,476,821 | 3,438,219 | 3,292,617 | |||||||||||||||
Deposits - interest-bearing | 2,452,421 | 2,448,954 | 1,923,567 | 1,863,288 | 1,865,009 | |||||||||||||||
Deposits - non-interest-bearing | 863,118 | 924,844 | 760,614 | 818,475 | 771,556 | |||||||||||||||
Short-term borrowings | 173,704 | 237,865 | 180,874 | 130,295 | 23,613 | |||||||||||||||
Long-term FHLB advances and other borrowings | 107,784 | 139,140 | 134,651 | 164,681 | 174,711 | |||||||||||||||
Subordinated notes | 98,448 | 98,416 | 29,573 | 29,559 | 29,546 | |||||||||||||||
Jr. subordinated debentures | 21,456 | 21,416 | - | - | - | |||||||||||||||
Total liabilities | 3,767,315 | 3,921,601 | 3,074,929 | 3,043,242 | 2,904,522 | |||||||||||||||
Total shareholders' equity | 533,061 | 528,119 | 401,892 | 394,977 | 388,095 | |||||||||||||||
Average Balance Sheet (selected items) | ||||||||||||||||||||
Interest-bearing deposits with banks | $ | 38,044 | $ | 43,962 | $ | 26,628 | $ | 26,266 | $ | 39,669 | ||||||||||
Investment securities | 535,471 | 499,968 | 462,700 | 429,400 | 393,306 | |||||||||||||||
Loans held for sale | 2,848 | 3,966 | 3,728 | 3,855 | 4,238 | |||||||||||||||
Portfolio loans and leases | 3,288,364 | 2,801,289 | 2,676,589 | 2,611,755 | 2,551,439 | |||||||||||||||
Total interest-earning assets | 3,864,727 | 3,349,185 | 3,169,645 | 3,071,276 | 2,988,652 | |||||||||||||||
Goodwill and intangible assets | 205,529 | 142,652 | 128,917 | 126,537 | 124,884 | |||||||||||||||
Total assets | 4,246,180 | 3,640,667 | 3,441,906 | 3,333,307 | 3,244,060 | |||||||||||||||
Deposits - interest-bearing | 2,435,491 | 2,031,170 | 1,871,494 | 1,853,660 | 1,852,194 | |||||||||||||||
Short-term borrowings | 172,534 | 180,650 | 182,845 | 98,869 | 47,603 | |||||||||||||||
Long-term FHLB advances | 123,920 | 134,605 | 155,918 | 171,567 | 182,507 | |||||||||||||||
Subordinated notes | 98,430 | 43,844 | 29,564 | 29,550 | 29,537 | |||||||||||||||
Jr. subordinated debentures | 21,430 | 3,957 | ||||||||||||||||||
Total interest-bearing liabilities | 2,851,805 | 2,394,226 | 2,239,821 | 2,153,646 | 2,111,841 | |||||||||||||||
Total liabilities | 3,719,746 | 3,213,349 | 3,044,549 | 2,943,591 | 2,861,846 | |||||||||||||||
Total shareholders' equity | 526,434 | 427,318 | 397,357 | 389,716 | 382,214 | |||||||||||||||
Income Statement | ||||||||||||||||||||
Net interest income | $ | 37,439 | $ | 30,321 | $ | 29,438 | $ | 27,965 | $ | 27,403 | ||||||||||
Provision for loan and lease losses | 1,030 | 1,077 | 1,333 | (83 | ) | 291 | ||||||||||||||
Noninterest income | 19,536 | 15,536 | 15,584 | 14,785 | 13,227 | |||||||||||||||
Noninterest expense | 36,030 | 31,056 | 28,184 | 28,495 | 26,660 | |||||||||||||||
Income tax expense | 4,630 | 19,924 | 4,766 | 4,905 | 4,635 | |||||||||||||||
Net income | 15,285 | (6,200 | ) | 10,739 | 9,433 | 9,044 | ||||||||||||||
Add: Net loss attributable to noncontrolling interest | 1 | - | - | - | - | |||||||||||||||
Net income attributable to Bryn Mawr Bank Corporation | 15,286 | (6,200 | ) | 10,739 | 9,433 | 9,044 | ||||||||||||||
Basic earnings per share | 0.76 | (0.35 | ) | 0.63 | 0.56 | 0.53 | ||||||||||||||
Diluted earnings per share | 0.75 | (0.35 | ) | 0.62 | 0.55 | 0.53 | ||||||||||||||
Net income (core) (1) | 19,282 | 11,255 | 11,245 | 10,236 | 9,375 | |||||||||||||||
Basic earnings per share (core) (1) | 0.95 | 0.64 | 0.66 | 0.60 | 0.55 | |||||||||||||||
Diluted earnings per share (core) (1) | 0.94 | 0.63 | 0.65 | 0.59 | 0.55 | |||||||||||||||
Cash dividends paid per share | 0.22 | 0.22 | 0.22 | 0.21 | 0.21 | |||||||||||||||
Profitability Indicators | ||||||||||||||||||||
Return on average assets | 1.46 | % | -0.68 | % | 1.24 | % | 1.14 | % | 1.13 | % | ||||||||||
Return on average equity | 11.78 | % | -5.75 | % | 10.72 | % | 9.71 | % | 9.60 | % | ||||||||||
Return on tangible equity(1) | 20.20 | % | -8.03 | % | 16.52 | % | 15.06 | % | 14.96 | % | ||||||||||
Return on tangible equity (core)(1) | 25.25 | % | 16.30 | % | 17.27 | % | 16.28 | % | 15.48 | % | ||||||||||
Return on average assets (core)(1) | 1.84 | % | 1.23 | % | 1.30 | % | 1.23 | % | 1.17 | % | ||||||||||
Return on average equity (core)(1) | 14.85 | % | 10.45 | % | 11.23 | % | 10.53 | % | 9.95 | % | ||||||||||
Tax-equivalent net interest margin | 3.94 | % | 3.62 | % | 3.71 | % | 3.68 | % | 3.74 | % | ||||||||||
Efficiency ratio(1) | 54.12 | % | 58.64 | % | 59.30 | % | 62.16 | % | 62.66 | % | ||||||||||
Share Data | ||||||||||||||||||||
Closing share price | $ | 43.95 | $ | 44.20 | $ | 43.80 | $ | 42.50 | $ | 39.50 | ||||||||||
Book value per common share | $ | 26.35 | $ | 26.19 | $ | 23.57 | $ | 23.25 | $ | 22.87 | ||||||||||
Tangible book value per common share | $ | 16.10 | $ | 15.98 | $ | 16.03 | $ | 15.64 | $ | 15.53 | ||||||||||
Price / book value | 166.79 | % | 168.74 | % | 185.82 | % | 182.81 | % | 172.71 | % | ||||||||||
Price / tangible book value | 272.92 | % | 276.52 | % | 273.19 | % | 271.69 | % | 254.41 | % | ||||||||||
Weighted average diluted shares outstanding | 20,425,256 | 17,613,634 | 17,253,982 | 17,232,767 | 17,182,689 | |||||||||||||||
Shares outstanding, end of period | 20,229,896 | 20,161,395 | 17,050,151 | 16,989,849 | 16,969,451 | |||||||||||||||
Wealth Management Information: | ||||||||||||||||||||
Wealth assets under mgmt, administration, supervision and brokerage (2) | $ | 13,146,926 | $ | 12,968,738 | $ | 12,431,370 | $ | 12,050,555 | $ | 11,725,460 | ||||||||||
Fees for wealth management services | $ | 10,308 | $ | 9,974 | $ | 9,651 | $ | 9,807 | $ | 9,303 | ||||||||||
Capital Ratios | ||||||||||||||||||||
Bryn Mawr Trust Company | ||||||||||||||||||||
Tier I capital to risk weighted assets ("RWA") (3) | 11.33 | % | 11.10 | % | 10.78 | % | 10.29 | % | 10.58 | % | ||||||||||
Total capital to RWA (3) | 11.85 | % | 11.65 | % | 11.42 | % | 10.90 | % | 11.25 | % | ||||||||||
Tier I leverage ratio (3) | 9.39 | % | 10.76 | % | 8.79 | % | 8.76 | % | 8.83 | % | ||||||||||
Tangible equity ratio (1)(3) | 9.19 | % | 8.67 | % | 8.46 | % | 8.24 | % | 8.46 | % | ||||||||||
Common equity Tier I capital to RWA (3) | 11.33 | % | 11.10 | % | 10.78 | % | 10.29 | % | 10.58 | % | ||||||||||
Bryn Mawr Bank Corporation | ||||||||||||||||||||
Tier I capital to RWA (3) | 10.66 | % | 10.42 | % | 10.50 | % | 10.10 | % | 10.50 | % | ||||||||||
Total capital to RWA (3) | 14.17 | % | 13.92 | % | 12.23 | % | 11.79 | % | 12.30 | % | ||||||||||
Tier I leverage ratio (3) | 8.71 | % | 10.10 | % | 8.53 | % | 8.63 | % | 8.77 | % | ||||||||||
Tangible equity ratio (1)(3) | 7.98 | % | 7.61 | % | 8.16 | % | 8.03 | % | 8.32 | % | ||||||||||
Common equity Tier I capital to RWA (3) | 10.03 | % | 9.87 | % | 10.50 | % | 10.10 | % | 10.50 | % | ||||||||||
Asset Quality Indicators | ||||||||||||||||||||
Net loan and lease charge-offs ("NCO"s) | $ | 893 | $ | 556 | $ | 728 | $ | 625 | $ | 670 | ||||||||||
Nonperforming loans and leases ("NPL"s) | $ | 7,533 | $ | 8,579 | $ | 4,472 | $ | 7,237 | $ | 7,329 | ||||||||||
Other real estate owned ("OREO") | 300 | 304 | 865 | 1,122 | 978 | |||||||||||||||
Total nonperforming assets ("NPA"s) | $ | 7,833 | $ | 8,883 | $ | 5,337 | $ | 8,359 | $ | 8,307 | ||||||||||
Nonperforming loans and leases 30 or more days past due | $ | 5,775 | $ | 6,983 | $ | 2,337 | $ | 4,076 | $ | 5,097 | ||||||||||
Performing loans and leases 30 to 89 days past due | 6,547 | 7,958 | 4,558 | 6,258 | 6,077 | |||||||||||||||
Performing loans and leases 90 or more days past due | - | - | - | - | - | |||||||||||||||
Total delinquent loans and leases | $ | 12,322 | $ | 14,941 | $ | 6,895 | $ | 10,334 | $ | 11,174 | ||||||||||
Delinquent loans and leases to total loans and leases | 0.37 | % | 0.45 | % | 0.26 | % | 0.39 | % | 0.44 | % | ||||||||||
Delinquent performing loans and leases to total loans and leases | 0.20 | % | 0.24 | % | 0.17 | % | 0.23 | % | 0.24 | % | ||||||||||
NCOs / average loans and leases (annualized) | 0.11 | % | 0.08 | % | 0.11 | % | 0.10 | % | 0.11 | % | ||||||||||
NPLs / total portfolio loans and leases | 0.23 | % | 0.26 | % | 0.17 | % | 0.27 | % | 0.29 | % | ||||||||||
NPAs / total loans and leases and OREO | 0.24 | % | 0.27 | % | 0.20 | % | 0.31 | % | 0.32 | % | ||||||||||
NPAs / total assets | 0.18 | % | 0.20 | % | 0.15 | % | 0.24 | % | 0.25 | % | ||||||||||
ALLL / NPLs | 234.46 | % | 204.28 | % | 380.23 | % | 226.60 | % | 233.42 | % | ||||||||||
ALLL / portfolio loans | 0.53 | % | 0.53 | % | 0.64 | % | 0.61 | % | 0.67 | % | ||||||||||
ALLL on originated loans and leases / Originated loans and leases (1) | 0.69 | % | 0.70 | % | 0.70 | % | 0.68 | % | 0.75 | % | ||||||||||
(Total Allowance + Loan mark) / Total Gross portfolio loans and leases (1) | 1.50 | % | 1.58 | % | 1.01 | % | 1.03 | % | 1.12 | % | ||||||||||
Troubled debt restructurings ("TDR"s) included in NPLs | $ | 1,125 | $ | 3,289 | $ | 2,033 | $ | 2,470 | $ | 2,681 | ||||||||||
TDRs in compliance with modified terms | 5,235 | 5,800 | 6,597 | 6,148 | 6,492 | |||||||||||||||
Total TDRs | $ | 6,360 | $ | 9,089 | $ | 8,630 | $ | 8,618 | $ | 9,173 | ||||||||||
(1)Non-GAAP measure - see Appendix for Non-GAAP to GAAP reconciliation. | ||||||||||||||||||||
(2)Brokerage assets represent assets held at a registered broker dealer under a clearing agreement. | ||||||||||||||||||||
(3)Capital Ratios for the current quarter are to be considered preliminary until the Call Reports are filed. | ||||||||||||||||||||
Bryn Mawr Bank Corporation | ||||||||||||||||||||
Detailed Balance Sheets (unaudited) | ||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
March 31, 2018 | December 31, 2017 | September 30, 2017 | June 30, 2017 | March 31, 2017 | ||||||||||||||||
Assets | ||||||||||||||||||||
Cash and due from banks | $ | 7,804 | $ | 11,657 | $ | 8,682 | $ | 19,352 | $ | 17,457 | ||||||||||
Interest-bearing deposits with banks | 24,589 | 48,367 | 36,870 | 30,806 | 69,978 | |||||||||||||||
Cash and cash equivalents | 32,393 | 60,024 | 45,552 | 50,158 | 87,435 | |||||||||||||||
Investment securities, available for sale | 534,103 | 689,202 | 471,721 | 443,687 | 391,028 | |||||||||||||||
Investment securities, held to maturity | 7,885 | 7,932 | 6,255 | 5,161 | 5,194 | |||||||||||||||
Investment securities, trading | 8,211 | 4,610 | 4,423 | 4,021 | 4,138 | |||||||||||||||
Loans held for sale | 5,522 | 3,794 | 6,327 | 8,590 | 3,015 | |||||||||||||||
Portfolio loans and leases, originated | 2,564,825 | 2,487,296 | 2,433,054 | 2,409,964 | 2,286,814 | |||||||||||||||
Portfolio loans and leases, acquired | 740,970 | 798,562 | 244,291 | 256,687 | 268,775 | |||||||||||||||
Total portfolio loans and leases | 3,305,795 | 3,285,858 | 2,677,345 | 2,666,651 | 2,555,589 | |||||||||||||||
Less: Allowance for losses on originated loan and leases | (17,570 | ) | (17,475 | ) | (16,957 | ) | (16,374 | ) | (17,069 | ) | ||||||||||
Less: Allowance for losses on acquired loan and leases | (92 | ) | (50 | ) | (47 | ) | (25 | ) | (38 | ) | ||||||||||
Total allowance for loan and lease losses | (17,662 | ) | (17,525 | ) | (17,004 | ) | (16,399 | ) | (17,107 | ) | ||||||||||
Net portfolio loans and leases | 3,288,133 | 3,268,333 | 2,660,341 | 2,650,252 | 2,538,482 | |||||||||||||||
Premises and equipment | 54,986 | 54,458 | 44,544 | 44,446 | 40,515 | |||||||||||||||
Accrued interest receivable | 12,521 | 14,246 | 9,287 | 8,717 | 8,392 | |||||||||||||||
Mortgage servicing rights | 5,706 | 5,861 | 5,732 | 5,683 | 5,686 | |||||||||||||||
Bank owned life insurance | 56,946 | 56,667 | 39,881 | 39,680 | 39,479 | |||||||||||||||
Federal Home Loan Bank ("FHLB") stock | 15,499 | 20,083 | 16,248 | 15,168 | 8,505 | |||||||||||||||
Goodwill | 182,200 | 179,889 | 107,127 | 107,127 | 104,765 | |||||||||||||||
Intangible assets | 25,087 | 25,966 | 21,407 | 22,084 | 19,864 | |||||||||||||||
Other investments | 11,720 | 12,470 | 8,941 | 8,682 | 8,716 | |||||||||||||||
Other assets | 59,464 | 46,185 | 29,035 | 24,763 | 27,403 | |||||||||||||||
Total assets | $ | 4,300,376 | $ | 4,449,720 | $ | 3,476,821 | $ | 3,438,219 | $ | 3,292,617 | ||||||||||
Liabilities | ||||||||||||||||||||
Deposits | ||||||||||||||||||||
Noninterest-bearing | $ | 863,118 | $ | 924,844 | $ | 760,614 | $ | 818,475 | $ | 771,556 | ||||||||||
Interest-bearing | 2,452,421 | 2,448,954 | 1,923,567 | 1,863,288 | 1,865,009 | |||||||||||||||
Total deposits | 3,315,539 | 3,373,798 | 2,684,181 | 2,681,763 | 2,636,565 | |||||||||||||||
Short-term borrowings | 173,704 | 237,865 | 180,874 | 130,295 | 23,613 | |||||||||||||||
Long-term FHLB advances | 107,784 | 139,140 | 134,651 | 164,681 | 174,711 | |||||||||||||||
Subordinated notes | 98,448 | 98,416 | 29,573 | 29,559 | 29,546 | |||||||||||||||
Jr. subordinated debentures | 21,456 | 21,416 | - | - | - | |||||||||||||||
Accrued interest payable | 4,814 | 3,527 | 2,267 | 2,830 | 2,722 | |||||||||||||||
Other liabilities | 45,570 | 47,439 | 43,383 | 34,114 | 37,365 | |||||||||||||||
Total liabilities | 3,767,315 | 3,921,601 | 3,074,929 | 3,043,242 | 2,904,522 | |||||||||||||||
Shareholders' equity | ||||||||||||||||||||
Common stock | 24,439 | 24,360 | 21,248 | 21,162 | 21,141 | |||||||||||||||
Paid-in capital in excess of par value | 371,319 | 371,486 | 235,412 | 234,654 | 233,910 | |||||||||||||||
Less: common stock held in treasury, at cost | (68,787 | ) | (68,179 | ) | (68,134 | ) | (67,091 | ) | (66,969 | ) | ||||||||||
Accumulated other comprehensive (loss) income, net of tax | (9,664 | ) | (4,414 | ) | (1,400 | ) | (1,564 | ) | (1,990 | ) | ||||||||||
Retained earnings | 216,438 | 205,549 | 214,766 | 207,816 | 202,003 | |||||||||||||||
Total Bryn Mawr Bank Corporation shareholders' equity | 533,745 | 528,802 | 401,892 | 394,977 | 388,095 | |||||||||||||||
Noncontrolling interest | (684 | ) | (683 | ) | - | - | - | |||||||||||||
Total shareholders' equity | 533,061 | 528,119 | 401,892 | 394,977 | 388,095 | |||||||||||||||
Total liabilities and shareholders' equity | $ | 4,300,376 | $ | 4,449,720 | $ | 3,476,821 | $ | 3,438,219 | $ | 3,292,617 | ||||||||||
Bryn Mawr Bank Corporation | ||||||||||||||||||||
Supplemental Balance Sheet Information (unaudited) | ||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Portfolio Loans and Leases as of | ||||||||||||||||||||
March 31, 2018 | December 31, 2017 | September 30, 2017 | June 30, 2017 | March 31, 2017 | ||||||||||||||||
Commercial mortgages | $ | 1,541,457 | $ | 1,523,376 | $ | 1,224,571 | $ | 1,197,936 | $ | 1,137,870 | ||||||||||
Home equity loans and lines | 211,469 | 218,275 | 206,974 | 208,480 | 203,962 | |||||||||||||||
Residential mortgages | 453,655 | 458,886 | 422,524 | 416,488 | 418,264 | |||||||||||||||
Construction | 202,168 | 212,454 | 133,505 | 156,581 | 145,699 | |||||||||||||||
Total real estate loans | 2,408,749 | 2,412,991 | 1,987,574 | 1,979,485 | 1,905,795 | |||||||||||||||
Commercial & Industrial | 727,231 | 719,312 | 597,595 | 599,203 | 567,917 | |||||||||||||||
Consumer | 48,423 | 38,153 | 31,306 | 28,485 | 23,932 | |||||||||||||||
Leases | 121,392 | 115,401 | 60,870 | 59,478 | 57,945 | |||||||||||||||
Total non-real estate loans and leases | 897,046 | 872,866 | 689,771 | 687,166 | 649,794 | |||||||||||||||
Total portfolio loans and leases | $ | 3,305,795 | $ | 3,285,857 | $ | 2,677,345 | $ | 2,666,651 | $ | 2,555,589 | ||||||||||
Nonperforming Loans and Leases as of | ||||||||||||||||||||
March 31, 2018 | December 31, 2017 | September 30, 2017 | June 30, 2017 | March 31, 2017 | ||||||||||||||||
Commercial mortgages | $ | 138 | $ | 872 | $ | 193 | $ | 818 | $ | 315 | ||||||||||
Home equity loans and lines | 1,949 | 1,481 | 613 | 1,535 | 1,828 | |||||||||||||||
Residential mortgages | 2,603 | 4,417 | 1,589 | 2,589 | 2,640 | |||||||||||||||
Construction | - | - | - | - | - | |||||||||||||||
Total nonperforming real estate loans | 4,690 | 6,770 | 2,395 | 4,942 | 4,783 | |||||||||||||||
Commercial & Industrial | 2,499 | 1,706 | 1,977 | 2,112 | 2,471 | |||||||||||||||
Consumer | - | - | - | 10 | - | |||||||||||||||
Leases | 344 | 103 | 100 | 173 | 75 | |||||||||||||||
Total nonperforming non-real estate loans and leases | 2,843 | 1,809 | 2,077 | 2,295 | 2,546 | |||||||||||||||
Total nonperforming portfolio loans and leases | $ | 7,533 | $ | 8,579 | $ | 4,472 | $ | 7,237 | $ | 7,329 | ||||||||||
Net Loan and Lease Charge-Offs (Recoveries) for the Three Months Ended | ||||||||||||||||||||
March 31, 2018 | December 31, 2017 | September 30, 2017 | June 30, 2017 | March 31, 2017 | ||||||||||||||||
Commercial mortgage | $ | (3 | ) | $ | 51 | $ | (3 | ) | $ | (3 | ) | $ | (3 | ) | ||||||
Home equity loans and lines | 25 | (5 | ) | 69 | 169 | 438 | ||||||||||||||
Residential | - | 88 | 3 | 43 | 27 | |||||||||||||||
Construction | (1 | ) | (1 | ) | (1 | ) | (1 | ) | (1 | ) | ||||||||||
Total net charge-offs of real estate loans | 21 | 133 | 68 | 208 | 461 | |||||||||||||||
Commercial & Industrial | 283 | 125 | 298 | 185 | 59 | |||||||||||||||
Consumer | 48 | 55 | 36 | 16 | 39 | |||||||||||||||
Leases | 541 | 243 | 326 | 216 | 111 | |||||||||||||||
Total net charge-offs of non-real estate loans and leases | 872 | 423 | 660 | 417 | 209 | |||||||||||||||
Total net charge-offs | $ | 893 | $ | 556 | $ | 728 | $ | 625 | $ | 670 | ||||||||||
Bryn Mawr Bank Corporation | ||||||||||||||||||||||
Supplemental Balance Sheet Information (unaudited) | ||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||
Investment Securities Available for Sale, at Fair Value | ||||||||||||||||||||||
March 31, 2018 | December 31, 2017 | September 30, 2017 | June 30, 2017 | March 31, 2017 | ||||||||||||||||||
U.S. Treasury securities | $ | 100 | $ | 200,088 | $ | 100 | $ | 100 | $ | 100 | ||||||||||||
Obligations of the U.S. Government and agencies | 175,107 | 151,044 | 142,711 | 126,468 | 100,476 | |||||||||||||||||
State & political subdivisions - tax-free | 19,746 | 21,138 | 23,556 | 26,958 | 30,416 | |||||||||||||||||
State & political subdivisions - taxable | 171 | 172 | 524 | 524 | 524 | |||||||||||||||||
Mortgage-backed securities | 303,902 | 274,990 | 260,680 | 230,617 | 197,420 | |||||||||||||||||
Collateralized mortgage obligations | 33,980 | 36,662 | 39,595 | 42,549 | 45,476 | |||||||||||||||||
Other debt securities | 1,097 | 1,599 | 1,100 | 1,099 | 1,299 | |||||||||||||||||
Bond mutual funds | - | - | - | 11,956 | 11,920 | |||||||||||||||||
Other investments | - | 3,509 | 3,455 | 3,416 | 3,397 | |||||||||||||||||
Total investment securities available for sale, at fair value | $ | 534,103 | $ | 689,202 | $ | 471,721 | $ | 443,687 | $ | 391,028 | ||||||||||||
Unrealized Gain (Loss) on Investment Securities Available for Sale | ||||||||||||||||||||||
March 31, 2018 | December 31, 2017 | September 30, 2017 | June 30, 2017 | March 31, 2017 | ||||||||||||||||||
U.S. Treasury securities | $ | - | $ | 11 | $ | - | $ | - | $ | - | ||||||||||||
Obligations of the U.S. Government and agencies | (3,756 | ) | (1,984 | ) | (920 | ) | (699 | ) | (803 | ) | ||||||||||||
State & political subdivisions - tax-free | (74 | ) | (42 | ) | 23 | 11 | (10 | ) | ||||||||||||||
State & political subdivisions - taxable | (1 | ) | - | 1 | 1 | 1 | ||||||||||||||||
Mortgage-backed securities | (5,169 | ) | (968 | ) | 869 | 480 | 196 | |||||||||||||||
Collateralized mortgage obligations | (1,322 | ) | (934 | ) | (640 | ) | (662 | ) | (777 | ) | ||||||||||||
Other debt securities | (3 | ) | (1 | ) | - | (1 | ) | (1 | ) | |||||||||||||
Bond mutual funds | - | - | - | - | (36 | ) | ||||||||||||||||
Other investments | - | 296 | 230 | 203 | 132 | |||||||||||||||||
Total unrealized (losses) gains on investment securities available for sale | $ | (10,325 | ) | $ | (3,622 | ) | $ | (437 | ) | $ | (667 | ) | $ | (1,298 | ) | |||||||
Deposits | ||||||||||||||||||||||
March 31, 2018 | December 31, 2017 | September 30, 2017 | June 30, 2017 | March 31, 2017 | ||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||
Interest-bearing demand | $ | 529,478 | $ | 481,336 | $ | 395,383 | $ | 381,345 | $ | 395,131 | ||||||||||||
Money market | 856,072 | 862,639 | 720,613 | 729,859 | 757,071 | |||||||||||||||||
Savings | 308,925 | 338,572 | 264,273 | 254,903 | 255,791 | |||||||||||||||||
Retail time deposits | 523,138 | 532,202 | 316,068 | 321,982 | 319,381 | |||||||||||||||||
Wholesale non-maturity deposits | 63,449 | 62,276 | 48,620 | 54,675 | 69,471 | |||||||||||||||||
Wholesale time deposits | 171,359 | 171,929 | 178,610 | 120,524 | 68,164 | |||||||||||||||||
Total interest-bearing deposits | 2,452,421 | 2,448,954 | 1,923,567 | 1,863,288 | 1,865,009 | |||||||||||||||||
Noninterest-bearing deposits | 863,118 | 924,844 | 760,614 | 818,475 | 771,556 | |||||||||||||||||
Total deposits | $ | 3,315,539 | $ | 3,373,798 | $ | 2,684,181 | $ | 2,681,763 | $ | 2,636,565 | ||||||||||||
Bryn Mawr Bank Corporation | ||||||||||||||||||||
Detailed Income Statements (unaudited) | ||||||||||||||||||||
(dollars in thousands, except per share data) | ||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||
March 31, 2018 | December 31, 2017 | September 30, 2017 | June 30, 2017 | March 31, 2017 | ||||||||||||||||
Interest income: | ||||||||||||||||||||
Interest and fees on loans and leases | $ | 40,689 | $ | 32,245 | $ | 30,892 | $ | 29,143 | $ | 28,482 | ||||||||||
Interest on cash and cash equivalents | 53 | 37 | 36 | 35 | 66 | |||||||||||||||
Interest on investment securities | 2,792 | 2,516 | 2,270 | 2,059 | 1,778 | |||||||||||||||
Total interest income | 43,534 | 34,798 | 33,198 | 31,237 | 30,326 | |||||||||||||||
Interest expense: | ||||||||||||||||||||
Interest on deposits | 3,472 | 2,739 | 2,198 | 1,983 | 1,828 | |||||||||||||||
Interest on short-term borrowings | 630 | 579 | 547 | 237 | 27 | |||||||||||||||
Interest on FHLB advances and other borrowings | 562 | 595 | 645 | 682 | 698 | |||||||||||||||
Interest on jr. subordinated debentures | 288 | 46 | - | - | - | |||||||||||||||
Interest on subordinated notes | 1,143 | 518 | 370 | 370 | 370 | |||||||||||||||
Total interest expense | 6,095 | 4,477 | 3,760 | 3,272 | 2,923 | |||||||||||||||
Net interest income | 37,439 | 30,321 | 29,438 | 27,965 | 27,403 | |||||||||||||||
Provision for loan and lease losses (the "Provision") | 1,030 | 1,077 | 1,333 | (83 | ) | 291 | ||||||||||||||
Net interest income after Provision | 36,409 | 29,244 | 28,105 | 28,048 | 27,112 | |||||||||||||||
Noninterest income: | ||||||||||||||||||||
Fees for wealth management services | 10,308 | 9,974 | 9,651 | 9,807 | 9,303 | |||||||||||||||
Insurance revenue | 1,693 | 1,510 | 1,373 | 943 | 763 | |||||||||||||||
Capital markets revenue | 666 | 600 | 843 | 953 | - | |||||||||||||||
Service charges on deposits | 713 | 655 | 676 | 630 | 647 | |||||||||||||||
Loan servicing and other fees | 686 | 536 | 548 | 519 | 503 | |||||||||||||||
Net gain on sale of loans | 518 | 493 | 799 | 520 | 629 | |||||||||||||||
Net gain on sale of investment securities available for sale | 7 | 28 | 72 | - | 1 | |||||||||||||||
Net gain (loss) on sale of other real estate owned | 176 | (92 | ) | - | (12 | ) | - | |||||||||||||
Dividends on FHLB and FRB stocks | 431 | 290 | 217 | 218 | 214 | |||||||||||||||
Other operating income | 4,338 | 1,542 | 1,405 | 1,207 | 1,167 | |||||||||||||||
Total noninterest income | 19,536 | 15,536 | 15,584 | 14,785 | 13,227 | |||||||||||||||
Noninterest expense: | ||||||||||||||||||||
Salaries and wages | 15,982 | 13,619 | 13,602 | 13,580 | 12,450 | |||||||||||||||
Employee benefits | 3,708 | 2,717 | 2,560 | 2,404 | 2,489 | |||||||||||||||
Occupancy and bank premises | 3,050 | 2,648 | 2,485 | 2,247 | 2,526 | |||||||||||||||
Furniture, fixtures and equipment | 1,898 | 1,816 | 1,726 | 1,869 | 1,974 | |||||||||||||||
Advertising | 461 | 386 | 277 | 405 | 386 | |||||||||||||||
Amortization of intangible assets | 879 | 677 | 677 | 687 | 693 | |||||||||||||||
(Recovery) impairment of mortgage servicing rights ("MSRs") | (50 | ) | (94 | ) | 3 | 43 | 3 | |||||||||||||
Due diligence, merger-related and merger integration expenses | 4,319 | 3,507 | 850 | 1,236 | 511 | |||||||||||||||
Professional fees | 748 | 769 | 739 | 1,049 | 711 | |||||||||||||||
Pennsylvania bank shares tax | 473 | 16 | 317 | 297 | 664 | |||||||||||||||
Information technology | 1,195 | 1,006 | 880 | 821 | 874 | |||||||||||||||
Other operating expenses | 3,367 | 3,989 | 4,068 | 3,857 | 3,379 | |||||||||||||||
Total noninterest expense | 36,030 | 31,056 | 28,184 | 28,495 | 26,660 | |||||||||||||||
Income before income taxes | 19,915 | 13,724 | 15,505 | 14,338 | 13,679 | |||||||||||||||
Income tax expense | 4,630 | 19,924 | 4,766 | 4,905 | 4,635 | |||||||||||||||
Net income | $ | 15,285 | $ | (6,200 | ) | $ | 10,739 | $ | 9,433 | $ | 9,044 | |||||||||
Add: Net loss attributable to noncontrolling interest | 1 | - | - | - | - | |||||||||||||||
Net income attributable to Bryn Mawr Bank Corporation | $ | 15,286 | $ | (6,200 | ) | $ | 10,739 | $ | 9,433 | $ | 9,044 | |||||||||
Per share data: | ||||||||||||||||||||
Weighted average shares outstanding | 20,202,969 | 17,632,697 | 17,023,046 | 16,984,563 | 16,954,132 | |||||||||||||||
Dilutive common shares | 222,287 | - | 230,936 | 248,204 | 228,557 | |||||||||||||||
Weighted average diluted shares | 20,425,256 | 17,613,634 | 17,253,982 | 17,232,767 | 17,182,689 | |||||||||||||||
Basic earnings (loss) per common share | $ | 0.76 | $ | (0.35 | ) | $ | 0.63 | $ | 0.56 | $ | 0.53 | |||||||||
Diluted earnings (loss) per common share | $ | 0.75 | $ | (0.35 | ) | $ | 0.62 | $ | 0.55 | $ | 0.53 | |||||||||
Dividend declared per share | $ | 0.22 | $ | 0.22 | $ | 0.22 | $ | 0.21 | $ | 0.21 | ||||||||||
Effective tax rate | 23.25 | % | 145.18 | % | 30.74 | % | 34.21 | % | 33.88 | % | ||||||||||
Bryn Mawr Bank Corporation | ||||||||||||||||||||||||||||||||||||||||||
Tax-Equivalent Net Interest Margin (unaudited) | ||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands, except per share data) | ||||||||||||||||||||||||||||||||||||||||||
For The Three Months Ended | ||||||||||||||||||||||||||||||||||||||||||
March 31, 2018 | December 31, 2017 | September 30, 2017 | June 30, 2017 | March 31, 2017 | ||||||||||||||||||||||||||||||||||||||
(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 | $ | 38,044 | $ | 53 | 0.56 | % | $ | 43,962 | $ | 37 | 0.33 | % | $ | 26,628 | $ | 36 | 0.54 | % | $ | 26,266 | $ | 35 | 0.53 | % | $ | 39,669 | $ | 66 | 0.67 | % | ||||||||||||
Investment securities - available for sale: | ||||||||||||||||||||||||||||||||||||||||||
Taxable | 498,718 | 2,675 | 2.18 | % | 465,393 | 2,394 | 2.04 | % | 427,106 | 2,160 | 2.01 | % | 391,112 | 1,940 | 1.99 | % | 354,229 | 1,653 | 1.89 | % | ||||||||||||||||||||||
Tax-exempt | 20,501 | 100 | 1.98 | % | 22,640 | 127 | 2.23 | % | 25,268 | 134 | 2.10 | % | 28,970 | 150 | 2.08 | % | 31,485 | 164 | 2.11 | % | ||||||||||||||||||||||
Total investment securities - available for sale | 519,219 | 2,775 | 2.17 | % | 488,033 | 2,521 | 2.05 | % | 452,374 | 2,294 | 2.01 | % | 420,082 | 2,090 | 2.00 | % | 385,714 | 1,817 | 1.91 | % | ||||||||||||||||||||||
Investment securities - held to maturity | 7,913 | 12 | 0.62 | % | 7,510 | 11 | 0.58 | % | 6,044 | 11 | 0.72 | % | 5,181 | 5 | 0.39 | % | 3,702 | 7 | 0.77 | % | ||||||||||||||||||||||
Investment securities - trading | 8,339 | 21 | 1.02 | % | 4,425 | 25 | 2.24 | % | 4,282 | 8 | 0.74 | % | 4,137 | 13 | 1.26 | % | 3,890 | 8 | 0.83 | % | ||||||||||||||||||||||
Loans and leases * | 3,291,212 | 40,754 | 5.02 | % | 2,805,255 | 32,403 | 4.58 | % | 2,680,317 | 31,058 | 4.60 | % | 2,615,610 | 29,309 | 4.49 | % | 2,555,677 | 28,622 | 4.54 | % | ||||||||||||||||||||||
Total interest-earning assets | 3,864,727 | 43,615 | 4.58 | % | 3,349,185 | 34,997 | 4.15 | % | 3,169,645 | 33,407 | 4.18 | % | 3,071,276 | 31,452 | 4.11 | % | 2,988,652 | 30,520 | 4.14 | % | ||||||||||||||||||||||
Cash and due from banks | 10,698 | 6,855 | 15,709 | 15,727 | 14,942 | |||||||||||||||||||||||||||||||||||||
Less: allowance for loan and lease losses | (17,628 | ) | (17,046 | ) | (16,564 | ) | (17,549 | ) | (17,580 | ) | ||||||||||||||||||||||||||||||||
Other assets | 388,383 | 301,673 | 273,116 | 263,853 | 258,046 | |||||||||||||||||||||||||||||||||||||
Total assets | $ | 4,246,180 | $ | 3,640,667 | $ | 3,441,906 | $ | 3,333,307 | $ | 3,244,060 | ||||||||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||||||||||||||||||||||
Savings, NOW and market rate deposits | $ | 1,676,733 | $ | 1,479 | 0.36 | % | $ | 1,410,461 | $ | 897 | 0.25 | % | $ | 1,359,293 | $ | 823 | 0.24 | % | $ | 1,375,949 | $ | 813 | 0.24 | % | $ | 1,388,561 | $ | 756 | 0.22 | % | ||||||||||||
Wholesale deposits | 231,289 | 733 | 1.29 | % | 262,643 | 822 | 1.24 | % | 190,849 | 548 | 1.14 | % | 154,424 | 378 | 0.98 | % | 143,461 | 317 | 0.90 | % | ||||||||||||||||||||||
Retail time deposits | 527,469 | 1,260 | 0.97 | % | 358,066 | 1,020 | 1.13 | % | 321,352 | 827 | 1.02 | % | 323,287 | 792 | 0.98 | % | 320,172 | 755 | 0.96 | % | ||||||||||||||||||||||
Total interest-bearing deposits | 2,435,491 | 3,472 | 0.58 | % | 2,031,170 | 2,739 | 0.53 | % | 1,871,494 | 2,198 | 0.47 | % | 1,853,660 | 1,983 | 0.43 | % | 1,852,194 | 1,828 | 0.40 | % | ||||||||||||||||||||||
Borrowings: | ||||||||||||||||||||||||||||||||||||||||||
Short-term borrowings | 172,534 | 630 | 1.48 | % | 180,650 | 579 | 1.27 | % | 182,845 | 547 | 1.19 | % | 98,869 | 237 | 0.96 | % | 47,603 | 27 | 0.23 | % | ||||||||||||||||||||||
Long-term FHLB advances | 123,920 | 562 | 1.84 | % | 134,605 | 595 | 1.75 | % | 155,918 | 645 | 1.64 | % | 171,567 | 682 | 1.59 | % | 182,507 | 698 | 1.55 | % | ||||||||||||||||||||||
Jr. subordinated debt | 21,430 | 288 | 5.45 | % | 3,957 | 46 | 4.61 | % | - | - | - | - | - | - | ||||||||||||||||||||||||||||
Subordinated notes | 98,430 | 1,143 | 4.71 | % | 43,844 | 518 | 4.69 | % | 29,564 | 370 | 4.97 | % | 29,550 | 370 | 5.02 | % | 29,537 | 370 | 5.08 | % | ||||||||||||||||||||||
Total borrowings | 416,314 | 2,623 | 2.56 | % | 363,056 | 1,738 | 1.90 | % | 368,327 | 1,562 | 1.68 | % | 299,986 | 1,289 | 1.72 | % | 259,647 | 1,095 | 1.71 | % | ||||||||||||||||||||||
Total interest-bearing liabilities | 2,851,805 | 6,095 | 0.87 | % | 2,394,226 | 4,477 | 0.74 | % | 2,239,821 | 3,760 | 0.67 | % | 2,153,646 | 3,272 | 0.61 | % | 2,111,841 | 2,923 | 0.56 | % | ||||||||||||||||||||||
Noninterest-bearing deposits | 835,476 | 771,519 | 764,562 | 755,597 | 711,794 | |||||||||||||||||||||||||||||||||||||
Other liabilities | 32,465 | 47,604 | 40,166 | 34,348 | 38,211 | |||||||||||||||||||||||||||||||||||||
Total noninterest-bearing liabilities | 867,941 | 819,123 | 804,728 | 789,945 | 750,005 | |||||||||||||||||||||||||||||||||||||
Total liabilities | 3,719,746 | 3,213,349 | 3,044,549 | 2,943,591 | 2,861,846 | |||||||||||||||||||||||||||||||||||||
Shareholders' equity | 526,434 | 427,318 | 397,357 | 389,716 | 382,214 | |||||||||||||||||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 4,246,180 | $ | 3,640,667 | $ | 3,441,906 | $ | 3,333,307 | $ | 3,244,060 | ||||||||||||||||||||||||||||||||
Net interest spread | 3.71 | % | 3.41 | % | 3.51 | % | 3.50 | % | 3.58 | % | ||||||||||||||||||||||||||||||||
Effect of noninterest-bearing sources | 0.23 | % | 0.21 | % | 0.20 | % | 0.18 | % | 0.16 | % | ||||||||||||||||||||||||||||||||
Tax-equivalent net interest margin | $ | 37,520 | 3.94 | % | $ | 30,520 | 3.62 | % | $ | 29,647 | 3.71 | % | $ | 28,180 | 3.68 | % | $ | 27,597 | 3.74 | % | ||||||||||||||||||||||
Tax-equivalent adjustment | $ | 81 | 0.01 | % | $ | 199 | 0.02 | % | $ | 209 | 0.03 | % | $ | 215 | 0.03 | % | $ | 194 | 0.02 | % | ||||||||||||||||||||||
Supplemental Information Regarding Accretion of Fair Value Marks | ||||||||||||||||||||||||||||||||||||||||||
Interest | Increase (Decrease) | Effect on Yield or Rate | Increase (Decrease) | Effect on Yield or Rate | Increase (Decrease) | Effect on Yield or Rate | Increase (Decrease) | Effect on Yield or Rate | Increase (Decrease) | Effect on Yield or Rate | ||||||||||||||||||||||||||||||||
Loans and leases | Income | $ | 2,702 | 0.33 | % | $ | 276 | 0.04 | % | $ | 708 | 0.10 | % | $ | 402 | 0.06 | % | $ | 726 | 0.12 | % | |||||||||||||||||||||
Retail time deposits | Expense | (380 | ) | -0.29 | % | (13 | ) | -0.01 | % | (15 | ) | -0.02 | % | (18 | ) | -0.02 | % | (19 | ) | -0.02 | % | |||||||||||||||||||||
Long-term FHLB advances and other borrowings | Expense | 15 | 0.05 | % | (31 | ) | -0.09 | % | (30 | ) | -0.08 | % | (30 | ) | -0.07 | % | (30 | ) | -0.07 | % | ||||||||||||||||||||||
Jr. subordinated debt | Expense | 40 | 0.76 | % | - | 0.00 | % | - | 0.00 | % | - | 0.00 | % | - | 0.00 | % | ||||||||||||||||||||||||||
Net interest income from fair value marks | $ | 3,027 | $ | 320 | $ | 753 | $ | 450 | $ | 775 | ||||||||||||||||||||||||||||||||
Purchase accounting effect on tax-equivalent margin | 0.32 | % | 0.04 | % | 0.09 | % | 0.06 | % | 0.11 | % | ||||||||||||||||||||||||||||||||
* 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 | |||||||||||||||||||||
Appendix - Non-GAAP to GAAP Reconciliations and Calculation of Non-GAAP Performance Measures (unaudited) | |||||||||||||||||||||
(dollars in thousands, except per share data) | |||||||||||||||||||||
Statement on Non-GAAP Measures: The Corporation believes the presentation of the following non-GAAP financial measures provides useful supplemental information that is essential to an investor’s proper understanding of the results of operations and financial condition of the Corporation. Management uses non-GAAP financial measures in its analysis of the Corporation’s performance. These non-GAAP measures should not be viewed as substitutes for the financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. | |||||||||||||||||||||
As of or For the Three Months Ended | |||||||||||||||||||||
March 31, 2018 | December 31, 2017 | September 30, 2017 | June 30, 2017 | March 31, 2017 | |||||||||||||||||
Reconciliation of Net Income to Net Income (core): | |||||||||||||||||||||
Net income (a GAAP measure) | $ | 15,286 | $ | (6,200 | ) | $ | 10,739 | $ | 9,433 | $ | 9,044 | ||||||||||
Less: Tax-effected non-core noninterest income: | |||||||||||||||||||||
(Gain) loss on sale of investment securities available for sale | (6 | ) | (18 | ) | (47 | ) | - | (1 | ) | ||||||||||||
Add: Tax-effected non-core noninterest expense items: | |||||||||||||||||||||
Due diligence, merger-related and merger integration expenses | 3,412 | 2,280 | 553 | 803 | 332 | ||||||||||||||||
Add: Federal income tax expense related to re-measurement of net deferred tax asset due to tax reform legislation. | 590 | 15,193 | - | - | - | ||||||||||||||||
Net income (core) (a non-GAAP measure) | $ | 19,282 | $ | 11,255 | $ | 11,245 | $ | 10,236 | $ | 9,375 | |||||||||||
Calculation of Basic and Diluted Earnings per Common Share (core): | |||||||||||||||||||||
Weighted average common shares outstanding | 20,202,969 | 17,632,697 | 17,023,046 | 16,984,563 | 16,954,132 | ||||||||||||||||
Dilutive common shares | 222,287 | 211,975 | 230,936 | 248,204 | 228,557 | ||||||||||||||||
Weighted average diluted shares | 20,425,256 | 17,844,672 | 17,253,982 | 17,232,767 | 17,182,689 | ||||||||||||||||
Basic earnings per common share (core) (a non-GAAP measure) | $ | 0.95 | $ | 0.64 | $ | 0.66 | $ | 0.60 | $ | 0.55 | |||||||||||
Diluted earnings per common share (core) (a non-GAAP measure) | $ | 0.94 | $ | 0.63 | $ | 0.65 | $ | 0.59 | $ | 0.55 | |||||||||||
Calculation of Return on Average Tangible Equity: | |||||||||||||||||||||
Net income (loss) | $ | 15,286 | $ | (6,200 | ) | $ | 10,739 | $ | 9,433 | $ | 9,044 | ||||||||||
Add: Tax-effected amortization and impairment of intangible assets | 694 | 440 | 440 | 447 | 450 | ||||||||||||||||
Net tangible income (numerator) | $ | 15,980 | $ | (5,760 | ) | $ | 11,179 | $ | 9,880 | $ | 9,494 | ||||||||||
Average shareholders' equity | $ | 526,434 | $ | 427,318 | $ | 397,357 | $ | 389,716 | $ | 382,214 | |||||||||||
Less: Average goodwill and intangible assets | (205,529 | ) | (142,652 | ) | (128,917 | ) | (126,537 | ) | (124,884 | ) | |||||||||||
Net average tangible equity (denominator) | $ | 320,905 | $ | 284,666 | $ | 268,440 | $ | 263,179 | $ | 257,330 | |||||||||||
Return on tangible equity (a non-GAAP measure) | 20.20 | % | -8.03 | % | 16.52 | % | 15.06 | % | 14.96 | % | |||||||||||
Calculation of Return on Average Tangible Equity (core): | |||||||||||||||||||||
Net income (core) (a non-GAAP measure) | $ | 19,282 | $ | 11,255 | $ | 11,245 | $ | 10,236 | $ | 9,375 | |||||||||||
Add: Tax-effected amortization and impairment of intangible assets | 694 | 440 | 440 | 447 | 450 | ||||||||||||||||
Net tangible income (core) (numerator) | $ | 19,976 | $ | 11,695 | $ | 11,685 | $ | 10,683 | $ | 9,825 | |||||||||||
Average shareholders' equity | $ | 526,434 | $ | 427,318 | $ | 397,357 | $ | 389,716 | $ | 382,214 | |||||||||||
Less: Average goodwill and intangible assets | (205,529 | ) | (142,652 | ) | (128,917 | ) | (126,537 | ) | (124,884 | ) | |||||||||||
Net average tangible equity (denominator) | $ | 320,905 | $ | 284,666 | $ | 268,440 | $ | 263,179 | $ | 257,330 | |||||||||||
Return on tangible equity (core) (a non-GAAP measure) | 25.25 | % | 16.30 | % | 17.27 | % | 16.28 | % | 15.48 | % | |||||||||||
Calculation of Tangible Equity Ratio: | |||||||||||||||||||||
Total shareholders' equity | $ | 533,061 | $ | 528,119 | $ | 401,892 | $ | 394,977 | $ | 388,095 | |||||||||||
Less: Goodwill and intangible assets | (207,287 | ) | (205,855 | ) | (128,534 | ) | (129,211 | ) | (124,629 | ) | |||||||||||
Net tangible equity (numerator) | $ | 325,774 | $ | 322,264 | $ | 273,358 | $ | 265,766 | $ | 263,466 | |||||||||||
Total assets | $ | 4,300,376 | $ | 4,449,720 | $ | 3,476,821 | $ | 3,438,219 | $ | 3,292,617 | |||||||||||
Less: Goodwill and intangible assets | (207,287 | ) | (205,855 | ) | (128,534 | ) | (129,211 | ) | (124,629 | ) | |||||||||||
Tangible assets (denominator) | $ | 4,093,089 | $ | 4,243,865 | $ | 3,348,287 | $ | 3,309,008 | $ | 3,167,988 | |||||||||||
Tangible equity ratio | 7.96 | % | 7.59 | % | 8.16 | % | 8.03 | % | 8.32 | % | |||||||||||
Calculation of Return on Average Assets (core) | |||||||||||||||||||||
Return on average assets (GAAP) | 1.46 | % | -0.68 | % | 1.18 | % | 1.09 | % | 1.10 | % | |||||||||||
Effect of adjustment to GAAP net income to core net income | 0.38 | % | 1.90 | % | 0.04 | % | 0.11 | % | 0.04 | % | |||||||||||
Return on average assets (core) | 1.84 | % | 1.23 | % | 1.23 | % | 1.19 | % | 1.14 | % | |||||||||||
Calculation of Return on Average Equity (core) | |||||||||||||||||||||
Return on average equity (GAAP) | 11.78 | % | -5.76 | % | 10.72 | % | 9.60 | % | 9.39 | % | |||||||||||
Effect of adjustment to GAAP net income to core net income | 3.08 | % | 16.21 | % | 0.51 | % | 0.93 | % | 0.56 | % | |||||||||||
Return on average equity (core) | 14.85 | % | 10.45 | % | 11.23 | % | 10.53 | % | 9.95 | % | |||||||||||
Calculation of Efficiency Ratio: | |||||||||||||||||||||
Noninterest expense | $ | 36,030 | $ | 31,056 | $ | 28,184 | $ | 28,495 | $ | 26,660 | |||||||||||
Less: certain noninterest expense items*: | |||||||||||||||||||||
Amortization of intangibles | (879 | ) | (677 | ) | (677 | ) | (687 | ) | (693 | ) | |||||||||||
Due diligence, merger-related and merger integration expenses | (4,319 | ) | (3,507 | ) | (850 | ) | (1,236 | ) | (511 | ) | |||||||||||
Noninterest expense (adjusted) (numerator) | $ | 30,832 | $ | 26,872 | $ | 26,657 | $ | 26,572 | $ | 25,456 | |||||||||||
Noninterest income | $ | 19,536 | $ | 15,536 | $ | 15,584 | $ | 14,785 | $ | 13,227 | |||||||||||
Less: non-core noninterest income items: | |||||||||||||||||||||
Loss (gain) on sale of investment securities available for sale | (8 | ) | (28 | ) | (72 | ) | - | (2 | ) | ||||||||||||
Noninterest income (core) | $ | 19,528 | $ | 15,508 | $ | 15,512 | $ | 14,785 | $ | 13,225 | |||||||||||
Net interest income | 37,439 | 30,321 | 29,438 | 27,965 | 27,403 | ||||||||||||||||
Noninterest income (core) and net interest income (denominator) | $ | 56,967 | $ | 45,829 | $ | 44,950 | $ | 42,750 | $ | 40,628 | |||||||||||
Efficiency ratio | 54.12 | % | 58.64 | % | 59.30 | % | 62.16 | % | 62.66 | % | |||||||||||
* In calculating the Corporation's efficiency ratio, which is used by Management to identify the cost of generating each dollar of core revenue, certain non-core income and expense items as well as the amortization of intangible assets, are excluded. | |||||||||||||||||||||
Supplemental Loan and Allowance Information Used to Calculate Non-GAAP Measures | |||||||||||||||||||||
Total Allowance | $ | 17,662 | $ | 17,525 | $ | 17,004 | $ | 16,399 | $ | 17,107 | |||||||||||
Less: Allowance on acquired loans | 92 | 50 | 47 | 25 | 38 | ||||||||||||||||
Allowance on originated loans and leases | $ | 17,570 | $ | 17,475 | $ | 16,957 | $ | 16,374 | $ | 17,069 | |||||||||||
Total Allowance | $ | 17,662 | $ | 17,525 | $ | 17,004 | $ | 16,399 | $ | 17,107 | |||||||||||
Loan mark on acquired loans | 32,260 | 34,790 | 10,223 | 11,084 | 11,544 | ||||||||||||||||
Total Allowance + Loan mark | $ | 49,922 | $ | 52,315 | $ | 27,227 | $ | 27,483 | $ | 28,651 | |||||||||||
Total Portfolio loans and leases | $ | 3,305,795 | $ | 3,285,858 | $ | 2,677,345 | $ | 2,666,651 | $ | 2,555,589 | |||||||||||
Less: Originated loans and leases | 2,564,825 | 2,487,296 | 2,433,054 | 2,409,964 | 2,286,814 | ||||||||||||||||
Net acquired loans | $ | 740,970 | $ | 798,562 | $ | 244,291 | $ | 256,687 | $ | 268,775 | |||||||||||
Add: Loan mark on acquired loans | 32,260 | 34,790 | 10,223 | 11,084 | 11,544 | ||||||||||||||||
Gross acquired loans (excludes loan mark) | $ | 773,230 | $ | 833,352 | $ | 254,514 | $ | 267,771 | $ | 280,319 | |||||||||||
Originated loans and leases | 2,564,825 | 2,487,296 | 2,433,054 | 2,409,964 | 2,286,814 | ||||||||||||||||
Total Gross portfolio loans and leases | $ | 3,338,055 | $ | 3,320,648 | $ | 2,687,568 | $ | 2,677,735 | $ | 2,567,133 | |||||||||||
FOR MORE INFORMATION CONTACT:
Frank Leto, President, CEO
610-581-4730
Mike Harrington, CFO
610-526-2466