BRYN MAWR, Pa., April 30, 2015 (GLOBE NEWSWIRE) -- Bryn Mawr Bank Corporation (Nasdaq:BMTC) (the "Corporation"), parent of The Bryn Mawr Trust Company (the "Bank"), today reported net income of $7.5 million and diluted earnings per share of $0.42 for the three months ended March 31, 2015, as compared to net income of $6.7 million and diluted earnings per share of $0.49 for the same period in 2014. Net income for the three months ended March 31, 2015 included pre-tax due diligence and merger-related expenses of $2.5 million, as compared to $264 thousand for the same period in 2014.
On a non-GAAP basis, net income, excluding tax-effected due diligence and merger-related expenses was $9.1 million, or $0.51 per diluted share, for the first quarter of 2015 as compared to $6.9 million, or $0.50 per diluted share, for the same period in 2014. Management believes these non-GAAP measures are important in evaluating the Corporation's performance. A reconciliation of these non-GAAP to GAAP performance measures is included in the schedules accompanying this earnings release.
The merger with Continental Bank Holdings, Inc. ("CBHI") (the "Merger"), which was completed on January 1, 2015, initially increased the Corporation's total assets by $741 million and included $426 million of loans and $482 million of deposits. In addition, nine new full-service branches and one Life Care Community office were added, increasing the Corporation's total number of full-service branches to twenty-nine, eight Life Care Community offices, five Wealth Management locations and two insurance agencies.
In addition to first quarter increases in net interest income, non-interest income and non-interest expense directly resulting from the Continental merger, the Corporation recorded first quarter increases in insurance revenues related to the October 2014 acquisition of Powers Craft Parker and Beard ("PCPB") and first quarter increases in gain on sale of residential mortgage loans, as the roll-out of the mortgage banking initiative gains momentum.
"With the Continental merger closed and the staff hard at work integrating the two institutions, we are delighted to see the positive contributions from the insurance division as well as the early success of the mortgage initiative," commented Frank Leto, President and Chief Executive Officer. Mr. Leto continued, "As we progress through 2015, with interest margins tightening, the continued diversification of our revenue streams will be key to our success. Our recently expanded branch network will provide significant opportunities to offer our wide array of financial solutions to both businesses and individuals in these new markets."
On April 30, 2015, the Board of Directors of the Corporation declared a quarterly dividend of $0.19 per share, payable June 1, 2015 to shareholders of record as of May 12, 2015.
SIGNIFICANT ITEMS OF NOTE
Results of Operations
- Net income of $7.5 million for the three months ended March 31, 2015 increased $805 thousand, or 12.0%, from $6.7 million for the same period in 2014.
- Net interest income for the three months ended March 31, 2015 was $24.8 million, an increase of $6.1 million, or 32.4%, from $18.7 million for the same period in 2014. The increase in net interest income between the periods was largely related to the interest income generated by loans acquired in the Merger. Average portfolio loans for the three months ended March 31, 2015 increased by $530.3 million from the same period in 2014. The increase in interest income resulting from loans acquired in the Merger was partially offset by an increase in interest expense on interest-bearing deposits. Average interest bearing deposits for the three months ended March 31, 2014 increased by $502.3 million as compared to the same period in 2014, primarily related to the deposits acquired in Merger.
- The tax-equivalent net interest margin of 3.79% for the three months ended March 31, 2015 was a 23 basis point decrease from 4.02% for the same period in 2014. The decrease was largely the result of the $533.7 million increase in average portfolio loans, accompanied by a 9 basis point decline in tax-equivalent yield on portfolio loans. In addition, average interest-bearing deposits increased by $502.3 million accompanied by a 1 basis point increase in the tax-equivalent rate paid on interest-bearing deposits. The decline in yield on portfolio loans was primarily related to the lower yields earned on the loans acquired in the Merger. On a linked-quarter basis, the tax-equivalent net interest margin decreased 5 basis points from 3.84% for the fourth quarter of 2014 to 3.79% for the first quarter of 2015.
- Non-interest income for the three months ended March 31, 2015 increased $3.6 million as compared to the same period in 2014. Contributing to this increase was an increase of $916 thousand in insurance revenues, as the fees and commissions resulting from the addition of PCPB continue to increase this source of non-interest income. Also, an $814 thousand increase in gain on sale of available for sale investment securities was recorded, as certain longer-duration investment securities, which had been acquired from CBHI, were sold in order to shorten the overall duration of the combined portfolio. In addition, sales of residential mortgage loans increased as the mortgage banking initiative begins to roll out, with the gain on sale of residential mortgage loans increasing by $484 thousand, or 149.7%, for the three months ended March 31, 2015 as compared to the same period in 2014. Residential mortgage loans originated for resale during the first quarter of 2015 totaled $27.2 million, representing a 194.6% increase from the $9.2 million originated in the same period in 2014. Other operating income also increased by $847 thousand for the first quarter of 2015 as compared to the first quarter of 2014. The increase was partially related to a $448 thousand special dividend received from the Federal Home Loan Bank of Pittsburgh (the "FHLB"), in addition to increases in certain debit card fees as a result of the added volume from the Merger. Revenue from the Wealth Management Division continues to be strong, totaling $9.1 million for the first quarter of 2015 as compared to $8.9 million for the same period in 2014.
- Non-interest expense for the three months ended March 31, 2015 increased $8.5 million, to $27.4 million, as compared to $18.9 million for the same period in 2014. Largely contributing to the increase was a $2.2 million increase in due diligence and merger-related expenses associated with the CBHI merger. In addition to the increase in merger costs, the Corporation recorded increases of $2.4 million in salary and wages, $750 thousand in employee benefits, $533 thousand in occupancy and bank premises, and $529 thousand in furniture fixtures and equipment expenses, all of which were primarily related to the new staff and branches added in the Merger. Also, other operating expense increased by $1.3 million for the three months ended March 31, 2015 as compared to the same period in 2014. Partially contributing to this increase was a $177 thousand prepayment of debt penalty associated with FHLB borrowings and a $343 thousand early termination fee related to the cancellation of two interest rate swaps acquired in the Merger.
- Nonperforming loans and leases of $9.1 million as of March 31, 2015 were 0.44% of total portfolio loans and leases, as compared to $10.1 million, or 0.61% of total portfolio loans and leases as of December 31, 2014. The 17 basis point decrease in the ratio of nonperforming loans and leases to total portfolio loans was largely related to the $436.3 million increase in portfolio loans between the dates. For the three months ended March 31, 2015, the Corporation recorded net loan and lease charge-offs of $859 thousand, as compared to $495 thousand for the same period in 2014. The provision for loan and lease losses (the "Provision") for the three months ended March 31, 2015 was $569 thousand as compared to $750 thousand for the same period in 2014. On a linked-quarter basis, the Provision for the first quarter of 2015 increased by $885 thousand from the $316 thousand release from the allowance for loan and lease losses (the "Allowance") recorded in the fourth quarter of 2014.
Financial Condition – March 31, 2015 Compared to December 31, 2014
- Total portfolio loans and leases of $2.09 billion as of March 31, 2015 increased by $436.3 million from December 31, 2014. The increase was primarily related to the $426.1 million of loans initially acquired from CBHI. Organic loan growth slowed during the first quarter of 2015, as we had anticipated, based on the lending pipeline as of December 31, 2014. However, the current pipeline is strong and we expect originations to accelerate as we progress through 2015.
- The Allowance, as of March 31, 2015, was $14.3 million, or 0.68% of portfolio loans as compared to $14.6 million, or 0.88% of portfolio loans and leases, as of December 31, 2014. The decrease in Allowance as a percentage of portfolio loans and leases was primarily the result of the increase in the balance of portfolio loans from the Merger. In accordance with GAAP, the loans acquired in the Merger were marked to their fair value at acquisition. This fair value mark is comprised of an interest rate component and a credit component, with the credit component being an estimate of the expected lifetime credit losses in the acquired portfolio. As such, no additional Provision was recorded for the acquired loan portfolio. In order to consider this fact when evaluating the adequacy of the Allowance, in addition to other factors, management also considers two additional non-GAAP measures: the Allowance as a percentage of originated loans and leases, which was 0.90% as of March 31, 2015 as compared to 0.94% as of December 31, 2014, and the Allowance plus the remaining loan mark, as a percentage of gross loans, which was 1.61% as of March 31, 2015, as compared to 1.27% as of December 31, 2014.
- Available for sale investment securities as of March 31, 2015 were $334.7 million, an increase of $105.2 million from December 31, 2014. As a result of the Merger, the Corporation acquired $181.8 million of available for sale investment securities. During the first quarter of 2015, the Corporation sold $63.2 million of these acquired available for sale investment securities in order to shorten the overall duration of the investment portfolio. Proceeds from the sale of available for sale investment securities along with excess cash were used to pay off $94.5 million of short-term FHLB advances assumed from CBHI which matured shortly after the Merger was completed, as well as the prepayment of $19.5 million of long-term FHLB advances which had also been assumed in the Merger.
- Total assets as of March 31, 2015 were $2.94 billion, an increase of $696.7 million from December 31, 2014. The Continental merger accounted for an initial increase in total assets of $741.3 million. In addition, cash and cash equivalents increased $25.6 million and portfolio loans and leases increased $10.2 million. These increases were offset by a $76.7 million decrease in available for sale investment securities and a $5.0 million decrease in FHLB stock between the dates.
- Deposits of $2.24 billion, as of March 31, 2015, increased $553.3 million from December 31, 2014. The Continental merger accounted for an initial increase in $481.7 million of deposits, which included $93.9 million of non-interest-bearing deposits. In addition, increases of $41.7 million and $29.9 million in non-interest-bearing deposits and interest-bearing deposits, respectively, were recorded between the dates. As of March 31, 2015, non-interest-bearing deposits comprised 26.0% of total deposits as compared to 26.5% as of December 31, 2014.
- The capital ratios for the Bank and the Corporation, as shown in the attached tables, indicate levels well above the regulatory minimum to be considered "well capitalized." All of the Bank's and the Corporation's capital ratios have increased from the levels present at December 31, 2014, largely as a result of the stock issued in the CBHI merger. In addition, increases in retained earnings and unrealized gains on available for sale investment securities contributed to the ratio increases.
EARNINGS CONFERENCE CALL
The Corporation will hold an earnings conference call at 8:30 a.m. EDT on Friday, May 1, 2015. Interested parties may participate by dialing (toll-free) 1-877-504-8812 (international (toll) 1-412-902-6656). A taped replay of the conference call will be available one hour after the conclusion of the call and will remain available through May 15, 2015. The taped replay may be accessed by dialing (toll-free) 1-877-344-7529 (international (toll) 1-412-317-0088) and the conference number is 10062202.
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/bmtc150501.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, that the integration of CBHI's business with the Corporation 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 well as any changes in risk factors that we may identify in our quarterly or other reports 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 | |||||
| March 31, | December 31, | September 30, | June 30, | March 31, | |
| 2015 | 2014 | 2014 | 2014 | 2014 | |
| Interest income | $ 26,754 | $ 21,055 | $ 20,749 | $ 20,941 | $ 20,161 |
| Interest expense | 1,959 | 1,568 | 1,573 | 1,499 | 1,438 |
| Net interest income | 24,795 | 19,487 | 19,176 | 19,442 | 18,723 |
| Provision for loan and lease losses | 569 | (316) | 550 | (100) | 750 |
| Net interest income after provision for loan and lease losses | 24,226 | 19,803 | 18,626 | 19,542 | 17,973 |
| Fees for wealth management services | 9,105 | 9,263 | 9,099 | 9,499 | 8,913 |
| Loan servicing and other fees | 591 | 450 | 431 | 428 | 446 |
| Service charges on deposits | 712 | 658 | 663 | 656 | 601 |
| Net gain on sale of residential mortgage loans | 808 | 471 | 440 | 537 | 324 |
| Net gain (loss) on sale of investment securities available for sale | 810 | 390 | -- | 85 | (4) |
| Net gain (loss) on sale of other real estate owned | 15 | 4 | (49) | 220 | -- |
| Bank owned life insurance income | 183 | 84 | 76 | 74 | 81 |
| Insurance revenue | 1,021 | 795 | 164 | 157 | 105 |
| Other operating income | 1,520 | 768 | 719 | 1,101 | 673 |
| Non-interest income | 14,765 | 12,883 | 11,543 | 12,757 | 11,139 |
| Salaries and wages | 10,870 | 9,869 | 9,110 | 9,694 | 8,440 |
| Employee benefits | 2,729 | 1,900 | 1,652 | 1,809 | 1,979 |
| Occupancy and bank premises | 2,466 | 1,808 | 1,881 | 1,683 | 1,933 |
| Furniture, fixtures and equipment | 1,512 | 1,358 | 1,078 | 1,089 | 983 |
| Advertising | 557 | 400 | 310 | 455 | 339 |
| Amortization of intangible assets | 982 | 753 | 633 | 636 | 637 |
| Due diligence and merger-related expenses | 2,501 | 957 | 775 | 377 | 264 |
| Professional fees | 673 | 809 | 701 | 914 | 593 |
| Pennsylvania bank shares tax | 433 | 64 | 412 | 412 | 368 |
| Other operating expenses | 4,706 | 4,014 | 3,409 | 3,557 | 3,363 |
| Non-interest expense | 27,429 | 21,932 | 19,961 | 20,626 | 18,899 |
| Income before income taxes | 11,562 | 10,754 | 10,208 | 11,673 | 10,213 |
| Income tax expense | 4,068 | 3,710 | 3,702 | 4,069 | 3,524 |
| Net income | $ 7,494 | $ 7,044 | $ 6,506 | $ 7,604 | $ 6,689 |
| Per share data: | |||||
| Weighted average shares outstanding | 17,545,802 | 13,646,098 | 13,600,348 | 13,531,155 | 13,485,213 |
| Dilutive common shares | 357,456 | 296,682 | 272,516 | 304,998 | 304,828 |
| Adjusted weighted average dilutive shares | 17,903,258 | 13,942,780 | 13,872,864 | 13,836,153 | 13,790,041 |
| Basic earnings per common share | $0.43 | $0.52 | $0.48 | $0.56 | $0.50 |
| Diluted earnings per common share | $0.42 | $0.51 | $0.47 | $0.55 | $0.49 |
| Dividend declared per share | $0.19 | $0.19 | $0.19 | $0.18 | $0.18 |
| Effective tax rate | 35.2% | 34.5% | 36.3% | 34.9% | 34.5% |
| Supplemental Non-GAAP Performance Measures* (Includes Reconciliation of Non-GAAP to GAAP Performance Measures) | |||||
| Net income (a GAAP measure) | $ 7,494 | $ 7,044 | $ 6,506 | $ 7,604 | $ 6,689 |
| add: tax-effected** due diligence and merger-related expenses | 1,626 | 622 | 504 | 245 | 172 |
| Net income excluding tax-effected** due diligence and merger-related expenses (a non-GAAP measure) | $ 9,120 | $ 7,666 | $ 7,010 | $ 7,849 | $ 6,861 |
| Basic earnings per common share excluding tax-effected** due diligence and merger-related expenses (a non-GAAP measure) | $ 0.52 | $ 0.56 | $ 0.52 | $ 0.58 | $ 0.51 |
| Diluted earnings per common share excluding tax-effected** due diligence and merger-related expenses (a non-GAAP measure) | $ 0.51 | $ 0.55 | $ 0.51 | $ 0.57 | $ 0.50 |
| *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) | |||||
| March 31, | December 31, | September 30, | June 30, | March 31, | |
| 2015 | 2014 | 2014 | 2014 | 2014 | |
| Assets | |||||
| Interest-bearing deposits with banks | $ 244,248 | $ 202,552 | $ 56,253 | $ 85,946 | $ 59,248 |
| Investment securities - available for sale | 334,746 | 229,577 | 265,939 | 266,402 | 272,599 |
| Investment securities - trading | 4,035 | 3,896 | 3,803 | 3,597 | 3,517 |
| Loans held for sale | 6,656 | 3,882 | 1,375 | 1,631 | 1,340 |
| Portfolio loans: | |||||
| Consumer | 20,204 | 18,480 | 16,810 | 18,907 | 18,104 |
| Commercial & industrial | 457,432 | 335,645 | 342,524 | 334,474 | 334,295 |
| Commercial mortgages | 892,675 | 689,528 | 683,558 | 666,924 | 640,574 |
| Construction | 81,408 | 66,267 | 59,923 | 55,051 | 44,060 |
| Residential mortgages | 379,363 | 313,442 | 314,127 | 310,491 | 301,532 |
| Home equity lines & loans | 209,037 | 182,082 | 183,314 | 185,593 | 186,277 |
| Leases | 48,412 | 46,813 | 44,982 | 44,102 | 40,988 |
| Total portfolio loans and leases | 2,088,531 | 1,652,257 | 1,645,238 | 1,615,542 | 1,565,830 |
| Earning assets | 2,678,216 | 2,092,164 | 1,972,608 | 1,973,118 | 1,902,534 |
| Cash and due from banks | 17,269 | 16,717 | 11,312 | 17,018 | 14,696 |
| Allowance for loan and lease losses | (14,296) | (14,586) | (15,599) | (15,470) | (15,770) |
| Premises and equipment | 42,888 | 33,748 | 32,733 | 32,679 | 32,473 |
| Accrued interest receivable | 7,465 | 5,560 | 5,661 | 5,526 | 5,687 |
| Mortgage servicing rights | 4,815 | 4,765 | 4,796 | 4,760 | 4,734 |
| Goodwill | 101,619 | 35,781 | 32,843 | 32,843 | 32,843 |
| Other intangible assets | 26,522 | 22,521 | 17,459 | 18,092 | 18,728 |
| Bank owned life insurance | 32,772 | 20,535 | 20,451 | 20,375 | 20,301 |
| FHLB stock | 11,541 | 11,523 | 12,889 | 12,775 | 11,911 |
| Deferred income taxes | 12,057 | 7,209 | 5,786 | 5,984 | 7,517 |
| Other investments | 9,238 | 5,226 | 4,592 | 4,507 | 4,392 |
| Other assets | 13,073 | 5,343 | 18,351 | 19,018 | 19,770 |
| Total assets | $ 2,943,179 | $ 2,246,506 | $ 2,123,882 | $ 2,131,225 | $ 2,059,816 |
| Liabilities and shareholders' equity | |||||
| Interest-bearing deposits: | |||||
| Interest-bearing checking | $ 349,582 | $ 277,228 | $ 256,890 | $ 263,247 | $ 269,409 |
| Money market | 717,441 | 566,354 | 550,238 | 559,070 | 556,076 |
| Savings | 184,819 | 138,992 | 142,364 | 145,312 | 141,979 |
| Wholesale non-maturity deposits | 69,555 | 66,693 | 41,290 | 41,840 | 42,704 |
| Wholesale time deposits | 73,476 | 73,458 | 60,171 | 50,152 | 34,104 |
| Retail time deposits | 263,996 | 118,400 | 121,158 | 123,572 | 130,983 |
| Total interest-bearing deposits | 1,658,869 | 1,241,125 | 1,172,111 | 1,183,193 | 1,175,255 |
| Non-interest-bearing deposits | 582,495 | 446,903 | 438,221 | 436,739 | 404,340 |
| Total deposits | 2,241,364 | 1,688,028 | 1,610,332 | 1,619,932 | 1,579,595 |
| Long-term FHLB advances and other borrowings | 250,088 | 260,146 | 230,574 | 233,132 | 214,640 |
| Short-term borrowings | 38,372 | 23,824 | 13,980 | 13,320 | 10,739 |
| Other liabilities | 35,452 | 29,034 | 21,387 | 21,470 | 19,365 |
| Shareholders' equity | 377,903 | 245,474 | 247,609 | 243,371 | 235,477 |
| Total liabilities and shareholders' equity | $ 2,943,179 | $ 2,246,506 | $ 2,123,882 | $ 2,131,225 | $ 2,059,816 |
| Bryn Mawr Bank Corporation | |||||
| Consolidated Quarterly Average Balance Sheets - (unaudited) | |||||
| (dollars in thousands) | |||||
| For The Three Months Ended | |||||
| March 31, | December 31, | September 30, | June 30, | March 31, | |
| 2015 | 2014 | 2014 | 2014 | 2014 | |
| Assets | |||||
| Interest-bearing deposits with banks | $ 206,694 | $ 115,276 | $ 78,324 | $ 70,775 | $ 67,809 |
| Investment securities - available for sale | 370,293 | 252,422 | 265,491 | 271,830 | 281,572 |
| Investment securities - trading | 3,897 | 3,804 | 3,599 | 3,518 | 3,438 |
| Loans held for sale | 3,470 | 982 | 1,116 | 1,280 | 504 |
| Portfolio loans and leases | 2,079,412 | 1,654,239 | 1,629,102 | 1,599,104 | 1,549,161 |
| Earning assets | 2,663,766 | 2,026,723 | 1,977,632 | 1,946,507 | 1,902,484 |
| Cash and due from banks | 19,092 | 13,795 | 12,739 | 12,067 | 12,302 |
| Allowance for loan and lease losses | (14,866) | (15,837) | (15,672) | (16,073) | (15,761) |
| Premises and equipment | 44,681 | 33,290 | 32,763 | 32,829 | 32,358 |
| Goodwill | 98,744 | 35,539 | 32,843 | 32,843 | 32,843 |
| Other intangible assets | 26,316 | 23,392 | 17,821 | 18,459 | 19,095 |
| Bank owned life insurance | 32,655 | 20,478 | 20,402 | 20,327 | 20,252 |
| FHLB stock | 11,928 | 11,419 | 12,864 | 12,663 | 11,915 |
| Deferred income taxes | 10,449 | 2,941 | 5,926 | 7,119 | 7,908 |
| Other assets | 25,391 | 31,102 | 30,491 | 29,750 | 29,940 |
| Total assets | $ 2,918,156 | $ 2,182,842 | $ 2,127,809 | $ 2,096,491 | $ 2,053,336 |
| Liabilities and shareholders' equity | |||||
| Interest-bearing deposits: | |||||
| Interest-bearing checking | $ 341,756 | $ 259,408 | $ 255,601 | $ 264,087 | $ 263,612 |
| Money market | 724,806 | 553,708 | 565,803 | 556,241 | 545,108 |
| Savings | 185,848 | 143,650 | 143,877 | 143,418 | 137,812 |
| Wholesale non-maturity deposits | 66,677 | 60,197 | 43,256 | 42,970 | 41,828 |
| Wholesale time deposits | 73,443 | 68,525 | 54,976 | 48,791 | 35,133 |
| Retail time deposits | 267,800 | 120,855 | 121,986 | 127,167 | 134,574 |
| Total interest-bearing deposits | 1,660,330 | 1,206,343 | 1,185,499 | 1,182,674 | 1,158,067 |
| Non-interest bearing deposits | 534,403 | 446,252 | 426,883 | 416,104 | 415,514 |
| Total deposits | 2,194,733 | 1,652,595 | 1,612,382 | 1,598,778 | 1,573,581 |
| Long-term FHLB advances and other borrowings | 266,342 | 237,835 | 235,091 | 222,851 | 212,405 |
| Short-term borrowings | 55,207 | 19,407 | 14,074 | 17,220 | 13,090 |
| Other liabilities | 30,935 | 24,070 | 22,298 | 19,368 | 22,546 |
| Shareholders' equity | 370,939 | 248,935 | 243,964 | 238,274 | 231,714 |
| Total liabilities and shareholders' equity | $ 2,918,156 | $ 2,182,842 | $ 2,127,809 | $ 2,096,491 | $ 2,053,336 |
| Bryn Mawr Bank Corporation | |||||||||||||||
| Quarterly Average Balances and Tax-Equivalent Interest Income and Expense and Tax-Equivalent Yields - (unaudited) | |||||||||||||||
| For The Three Months Ended | |||||||||||||||
| March 31, 2015 | December 31, 2014 | September 30, 2014 | June 30, 2014 | March 31, 2014 | |||||||||||
| (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 | $ 206,694 | $ 115 | 0.23% | $ 115,276 | $ 65 | 0.22% | $ 78,324 | $ 46 | 0.23% | $ 70,775 | $ 44 | 0.25% | $ 67,809 | $ 37 | 0.22% |
| Investment securities - available for sale: | |||||||||||||||
| Taxable | 335,208 | 1,336 | 1.62% | 221,190 | 973 | 1.75% | 230,457 | 884 | 1.52% | 235,853 | 903 | 1.54% | 245,006 | 972 | 1.61% |
| Tax-exempt | 35,085 | 203 | 2.35% | 31,232 | 142 | 1.80% | 35,034 | 149 | 1.69% | 35,977 | 151 | 1.68% | 36,566 | 153 | 1.70% |
| Total investment securities - available for sale | 370,293 | 1,539 | 1.69% | 252,422 | 1,115 | 1.75% | 265,491 | 1,033 | 1.54% | 271,830 | 1,054 | 1.56% | 281,572 | 1,125 | 1.62% |
| Investment securities - trading | 3,897 | 4 | 0.42% | 3,804 | 9 | 0.94% | 3,599 | 9 | 0.99% | 3,518 | 17 | 1.94% | 3,438 | 7 | 0.83% |
| Loans and leases * | 2,082,882 | 25,226 | 4.91% | 1,655,221 | 19,972 | 4.79% | 1,630,218 | 19,767 | 4.81% | 1,600,384 | 19,936 | 5.00% | 1,549,665 | 19,107 | 5.00% |
| Total interest-earning assets | 2,663,766 | 26,884 | 4.09% | 2,026,723 | 21,161 | 4.14% | 1,977,632 | 20,855 | 4.18% | 1,946,507 | 21,051 | 4.34% | 1,902,484 | 20,276 | 4.32% |
| Cash and due from banks | 19,092 | 13,795 | 12,739 | 12,067 | 12,302 | ||||||||||
| Less: allowance for loan and lease losses | (14,866) | (15,837) | (15,672) | (16,073) | (15,761) | ||||||||||
| Other assets | 250,164 | 158,161 | 153,110 | 153,990 | 154,311 | ||||||||||
| Total assets | $ 2,918,156 | $ 2,182,842 | $ 2,127,809 | $ 2,096,491 | $ 2,053,336 | ||||||||||
| Liabilities: | |||||||||||||||
| Interest-bearing deposits: | |||||||||||||||
| Savings, NOW and market rate deposits | $ 1,252,410 | $ 594 | 0.19% | $ 956,766 | $ 422 | 0.17% | $ 965,281 | $ 430 | 0.18% | $ 963,746 | $ 420 | 0.17% | $ 946,532 | $ 405 | 0.17% |
| Wholesale deposits | 140,120 | 188 | 0.54% | 128,722 | 190 | 0.59% | 98,232 | 175 | 0.71% | 91,761 | 147 | 0.64% | 76,961 | 114 | 0.60% |
| Time deposits | 267,800 | 246 | 0.37% | 120,855 | 143 | 0.47% | 121,986 | 137 | 0.45% | 127,167 | 146 | 0.46% | 134,574 | 170 | 0.51% |
| Total interest-bearing deposits | 1,660,330 | 1,028 | 0.25% | 1,206,343 | 755 | 0.25% | 1,185,499 | 742 | 0.25% | 1,182,674 | 713 | 0.24% | 1,158,067 | 689 | 0.24% |
| Borrowings: | |||||||||||||||
| Short-term borrowings | 55,207 | 11 | 0.08% | 19,407 | 4 | 0.08% | 14,074 | 3 | 0.08% | 17,220 | 5 | 0.12% | 13,090 | 3 | 0.09% |
| Long-term FHLB advances and other borrowings | 266,342 | 920 | 1.40% | 237,835 | 809 | 1.35% | 235,091 | 828 | 1.40% | 222,851 | 781 | 1.41% | 212,405 | 746 | 1.42% |
| Total borrowings | 321,549 | 931 | 1.17% | 257,242 | 813 | 1.25% | 249,165 | 831 | 1.32% | 240,071 | 786 | 1.31% | 225,495 | 749 | 1.35% |
| Total interest-bearing liabilities | 1,981,879 | 1,959 | 0.40% | 1,463,585 | 1,568 | 0.43% | 1,434,664 | 1,573 | 0.43% | 1,422,745 | 1,499 | 0.42% | 1,383,562 | 1,438 | 0.42% |
| Noninterest-bearing deposits | 534,403 | 446,252 | 426,883 | 416,104 | 415,514 | ||||||||||
| Other liabilities | 30,935 | 24,070 | 22,298 | 19,368 | 22,546 | ||||||||||
| Total noninterest-bearing liabilities | 565,338 | 470,322 | 449,181 | 435,472 | 438,060 | ||||||||||
| Total liabilities | 2,547,217 | 1,933,907 | 1,883,845 | 1,858,217 | 1,821,622 | ||||||||||
| Shareholders' equity | 370,939 | 248,935 | 243,964 | 238,274 | 231,714 | ||||||||||
| Total liabilities and shareholders' equity | $ 2,918,156 | $ 2,182,842 | $ 2,127,809 | $ 2,096,491 | $ 2,053,336 | ||||||||||
| Interest income to earning assets | 4.09% | 4.14% | 4.18% | 4.34% | 4.32% | ||||||||||
| Net interest spread | 3.69% | 3.71% | 3.75% | 3.92% | 3.90% | ||||||||||
| Effect of noninterest-bearing sources | 0.10% | 0.13% | 0.12% | 0.11% | 0.12% | ||||||||||
| Tax-equivalent net interest income/ margin on earning assets | $ 24,925 | 3.79% | $ 19,593 | 3.84% | $ 19,282 | 3.87% | $ 19,552 | 4.03% | $ 18,838 | 4.02% | |||||
| Tax-equivalent adjustment | $ 130 | 0.02% | $ 106 | 0.02% | $ 106 | 0.02% | $ 110 | 0.02% | $ 115 | 0.02% | |||||
| Supplemental Information Regarding Accretion of Fair Value Marks | |||||||||||||||
| Accretion of fair value marks on loans | $ 1,127 | $ 513 | $ 516 | $ 941 | $ 761 | ||||||||||
| Accretion of fair value marks on time deposits | 245 | 4 | 6 | 6 | 7 | ||||||||||
| Accretion of fair value marks on borrowings | 70 | 30 | 30 | 30 | 30 | ||||||||||
| Net interest income from fair value marks | $ 1,442 | $ 547 | $ 552 | $ 977 | $ 798 | ||||||||||
| Effect of fair value mark accretion on tax-equivalent net interest margin | 0.22% | 0.11% | 0.11% | 0.20% | 0.17% | ||||||||||
| * Average loans and leases include portfolio loans and leases, and loans held for sale. Non-accrual loans are also included in the average loan and leases balances. | |||||||||||||||
| Bryn Mawr Bank Corporation | |||||
| Consolidated Selected Financial Data - (unaudited) | |||||
| (dollars in thousands, except per share data) | |||||
| For The Three Months Ended or As Of | |||||
| March 31, | December 31, | September 30, | June 30, | March 31, | |
| 2015 | 2014 | 2014 | 2014 | 2014 | |
| Asset Quality Data | |||||
| Nonaccrual loans and leases | $ 9,130 | $ 10,096 | $ 8,336 | $ 8,388 | $ 10,236 |
| 90 days or more past due loans, still accruing | -- | -- | -- | -- | -- |
| Nonperforming loans and leases | 9,130 | 10,096 | 8,336 | 8,388 | 10,236 |
| Other real estate owned | 1,532 | 1,147 | 894 | 853 | 1,040 |
| Total nonperforming assets | $ 10,662 | $ 11,243 | $ 9,230 | $ 9,241 | $ 11,276 |
| Troubled debt restructurings included in nonperforming assets | $ 4,217 | $ 4,315 | $ 1,725 | $ 1,597 | $ 2,698 |
| Troubled debt restructurings in compliance with modified terms | 4,145 | 4,157 | 6,913 | 7,487 | 6,667 |
| Total troubled debt restructurings | $ 8,362 | $ 8,472 | $ 8,638 | $ 9,084 | $ 9,365 |
| Nonperforming loans and leases / portfolio loans & leases | 0.44% | 0.61% | 0.51% | 0.52% | 0.65% |
| Nonperforming assets / total assets | 0.36% | 0.50% | 0.43% | 0.43% | 0.55% |
| Net loan and lease charge-offs / average loans and leases (annualized) | 0.16% | 0.17% | 0.10% | 0.05% | 0.13% |
| Delinquency rate* - Performing and nonperforming loans and leases 30 days or more past due | 0.51% | 0.50% | 0.48% | 0.64% | 0.59% |
| Performing loans and leases - 30-89 days past due | $ 3,361 | $ 2,232 | $ 1,739 | $ 3,743 | $ 1,815 |
| Delinquency rate* - Performing loans and leases - 30-89 days past due | 0.16% | 0.13% | 0.11% | 0.23% | 0.12% |
| * as a percentage of total loans and leases | |||||
| Changes in the allowance for loan and lease losses: | |||||
| Balance, beginning of period | $ 14,586 | $ 15,599 | $ 15,470 | $ 15,770 | $ 15,515 |
| Charge-offs | (928) | (864) | (493) | (304) | (538) |
| Recoveries | 69 | 167 | 72 | 104 | 43 |
| Net charge-offs | (859) | (697) | (421) | (200) | (495) |
| Provision for loan and lease losses | 569 | (316) | 550 | (100) | 750 |
| Balance, end of period | $ 14,296 | $ 14,586 | $ 15,599 | $ 15,470 | $ 15,770 |
| Total Allowance / Total Portfolio loans and leases | 0.68% | 0.88% | 0.95% | 0.96% | 1.01% |
| Allowance on originated loans and leases / Originated loans and leases (a non-GAAP measure) | 0.90% | 0.94% | 1.01% | 1.01% | 1.09% |
| (Total Allowance + Loan mark) / Total Gross portfolio loans and leases (a non-GAAP measure) | 1.61% | 1.27% | 1.36% | 1.42% | 1.54% |
| Total Allowance / nonperforming loans and leases | 156.6% | 144.5% | 187.1% | 184.4% | 154.1% |
| Supplemental Loan and Allowance Information Used to Calculate Non-GAAP Measures | |||||
| Total Allowance | $ 14,296 | $ 14,586 | $ 15,599 | $ 15,470 | $ 15,770 |
| less: Allowance on acquired loans | 125 | 86 | 273 | 479 | 396 |
| Allowance on originated loans and leases | $ 14,171 | $ 14,500 | $ 15,326 | $ 14,991 | $ 15,374 |
| Total Allowance | $ 14,296 | $ 14,586 | $ 15,599 | $ 15,470 | $ 15,770 |
| Loan mark on acquired loans | 19,708 | 6,422 | 6,932 | 7,510 | 8,483 |
| Total Allowance + Loan mark | $ 34,004 | $ 21,008 | $ 22,531 | $ 22,980 | $ 24,253 |
| Total Portfolio loans and leases | $ 2,088,532 | $ 1,652,257 | $ 1,645,238 | $ 1,615,542 | $ 1,565,830 |
| less: Originated loans and leases | 1,571,377 | 1,535,003 | 1,516,104 | 1,479,526 | 1,415,317 |
| Net acquired loans | $ 517,155 | $ 117,254 | $ 129,134 | $ 136,016 | $ 150,513 |
| add: Loan mark on acquired loans | 19,708 | 6,422 | 6,932 | 7,510 | 8,483 |
| Gross acquired loans (excludes loan mark) | $ 536,863 | $ 123,676 | $ 136,066 | $ 143,526 | $ 158,996 |
| Originated loans and leases | 1,571,377 | 1,535,003 | 1,516,104 | 1,479,526 | 1,415,317 |
| Total Gross portfolio loans and leases | $ 2,108,240 | $ 1,658,679 | $ 1,652,170 | $ 1,623,052 | $ 1,574,313 |
| For The Three Months Ended or As Of | |||||
| March 31, | December 31, | September 30, | June 30, | March 31, | |
| 2015 | 2014 | 2014 | 2014 | 2014 | |
| Selected ratios (annualized): | |||||
| Return on average assets | 1.04% | 1.28% | 1.21% | 1.45% | 1.32% |
| Return on average shareholders' equity | 8.19% | 11.23% | 10.58% | 12.80% | 11.71% |
| Return on average tangible equity (2) | 12.36% | 14.71% | 13.35% | 16.31% | 15.10% |
| Tax-equivalent yield on loans and leases | 4.91% | 4.79% | 4.81% | 5.00% | 5.00% |
| Tax-equivalent yield on interest-earning assets | 4.09% | 4.14% | 4.18% | 4.34% | 4.32% |
| Cost of interest-bearing funds | 0.40% | 0.43% | 0.43% | 0.42% | 0.42% |
| Tax-equivalent net interest margin | 3.79% | 3.84% | 3.87% | 4.03% | 4.02% |
| Book value per share | $ 21.26 | $ 17.83 | $ 18.03 | $ 17.74 | $ 17.24 |
| Tangible book value per share | $ 14.05 | $ 13.59 | $ 14.37 | $ 14.03 | $ 13.47 |
| Shares outstanding at end of period | 17,777,628 | 13,769,336 | 13,730,581 | 13,719,337 | 13,656,979 |
| Selected data: | |||||
| Mortgage loans originated | $ 35,728 | $ 29,929 | $ 29,861 | $ 39,575 | $ 17,892 |
| Residential mortgage loans sold - servicing retained | $ 24,569 | $ 14,382 | $ 16,237 | $ 15,154 | $ 9,086 |
| Residential mortgage loans sold - servicing released | 2,644 | 92 | 539 | -- | 152 |
| Total residential mortgage loans sold | $ 27,213 | $ 14,474 | $ 16,776 | $ 15,154 | $ 9,238 |
| Yield on residential mortgage loans sold | 2.97% | 3.25% | 2.62% | 3.54% | 3.51% |
| Residential mortgage loans serviced for others | $ 591,989 | $ 590,659 | $ 594,156 | $ 594,660 | $ 598,338 |
| Total wealth assets under management, administration, supervision and brokerage (1) | $ 7,816,441 | $ 7,699,908 | $ 7,580,779 | $ 7,569,842 | $ 7,361,977 |
| (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. | |||||
| Investment Portfolio - Available for Sale | As of March 31, 2015 | As of December 31, 2014 | |||||
| Net | Net | ||||||
| Amortized | Fair | Unrealized | Amortized | Fair | Unrealized | ||
| SECURITY DESCRIPTION | Cost | Value | Gain / (Loss) | Cost | Value | Gain / (Loss) | |
| U.S. Treasury securities | $ 102 | $ 102 | $ -- | $ 102 | $ 100 | $ (2) | |
| Obligations of the U.S. Government and agencies | 89,078 | 89,669 | 591 | 66,881 | 66,762 | (119) | |
| State & political subdivisions | 32,128 | 32,261 | 133 | 28,955 | 29,045 | 90 | |
| Mortgage-backed securities | 159,472 | 162,370 | 2,898 | 79,498 | 81,382 | 1,884 | |
| Collateralized mortgage obligations | 32,412 | 32,759 | 347 | 34,618 | 34,797 | 179 | |
| Other debt securities | 1,900 | 1,900 | -- | 1,900 | 1,900 | -- | |
| Bond mutual funds | 11,956 | 11,883 | (73) | 11,956 | 11,835 | (121) | |
| Other investments | 3,674 | 3,802 | 128 | 3,643 | 3,756 | 113 | |
| Total investment portfolio available for sale | $ 330,722 | $ 334,746 | $ 4,024 | $ 227,553 | $ 229,577 | $ 2,024 | |
| Capital Ratios | |||||||
| Regulatory Minimum | |||||||
| To Be | March 31, | December 31, | September 30, | June 30, | March 31, | ||
| Bryn Mawr Trust Company | Well Capitalized | 2015 | 2014 | 2014 | 2014 | 2014 | |
| Tier I capital to risk weighted assets ("RWA") | 8.00% | 12.38% | 11.32% | 11.60% | 11.68% | 11.65% | |
| Total (Tier II) capital to RWA | 10.00% | 13.05% | 12.19% | 12.54% | 12.62% | 12.63% | |
| Tier I leverage ratio | 5.00% | 9.52% | 8.98% | 9.39% | 9.51% | 9.43% | |
| Tangible equity ratio | N/A | 8.42% | 8.19% | 9.21% | 9.18% | 9.18% | |
| Common equity Tier I capital to RWA | 4.50% | 12.38% | N/A | N/A | N/A | N/A | |
| Bryn Mawr Bank Corporation | |||||||
| Tier I capital to RWA | 8.00% | 12.63% | 12.00% | 12.05% | 11.85% | 11.71% | |
| Total (Tier II) capital to RWA | 10.00% | 13.30% | 12.87% | 12.99% | 12.79% | 12.69% | |
| Tier I leverage ratio | 5.00% | 9.77% | 9.43% | 9.77% | 9.67% | 9.50% | |
| Tangible equity ratio | N/A | 8.87% | 8.61% | 9.58% | 9.32% | 9.23% | |
| Common equity Tier I capital to RWA | 4.50% | 12.63% | N/A | N/A | N/A | N/A | |