BRYN MAWR, Pa., Jan. 29, 2018 (GLOBE NEWSWIRE) -- H.R. 1, originally known as the “Tax Cuts and Jobs Act” (“Tax Reform”), signed into law on December 22, 2017, reduced the top federal corporate income tax rate from 35% to 21%. As a result, Bryn Mawr Bank Corporation (NASDAQ:BMTC) (the “Corporation”), parent of The Bryn Mawr Trust Company (the “Bank”) was required to re-measure its net deferred tax asset to this lower rate, resulting in a one-time income tax charge of $15.2 million, or $0.85 diluted earnings per share. Additionally, the Corporation incurred after-tax due diligence and merger-related expenses of $2.3 million during the fourth quarter of 2017. As a result, the Corporation today reported a net loss of $6.2 million and diluted earnings per share of ($0.35) for the three months ended December 31, 2017, as compared to net income of $10.7 million, or $0.62 diluted earnings per share, for the three months ended September 30, 2017, and $9.4 million, or $0.55 diluted earnings per share, for the three months ended December 31, 2016. For the twelve months ended December 31, 2017, the Corporation posted net income of $23.0 million, or $1.32 diluted earnings per share, as compared to $36.0 million, or $2.12 diluted earnings per share for the same period in 2016.

On a non-GAAP basis, core net income, which excludes this one-time income tax charge, due diligence and merger-related expenses and certain other non-core income and expense items, as detailed in the appendix to this earnings release, was $11.3 million, or $0.63 diluted earnings per share, for the three months ended December 31, 2017 as compared to $11.2 million, or $0.65 diluted earnings per share, for the three months ended September 30, 2017 and $9.4 million, or $0.55 diluted earnings per share, for the three months ended December 31, 2016. For the twelve months ended December 31, 2017, core net income was $42.1 million, or $2.42 per share, as compared to $36.1 million, or $2.12 diluted earnings per share for the same period in 2016. 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 were pleased to finish the year on a strong note with core net income at record levels for both the quarter and full year,” commented Frank Leto, President and Chief Executive Officer.

“The fourth quarter was an excellent period for BMT, as we continued to benefit from our focus on new business development, as evidenced by the Wealth Division's reaching almost $13 billion in AUM, while also issuing $70 million of subordinated notes, which will qualify for Tier 2 regulatory capital, and successfully completing our merger with Royal Bank with minimal disruption to normal operations. As the merger was a mid-December close, the full impact of the business combination on the Corporation’s results will not be evident until the first quarter of 2018,” added Mr. Leto.

“The income tax charge related to Tax Reform was experienced by many throughout the industry.  While we expect to recoup this expense in less than two years, we are also analyzing how to deploy the increased after-tax earnings within a framework that is focused on improving long-term shareholder value while also continuing to serve the communities in which we do business,” Mr. Leto concluded.

The Board of Directors of the Corporation declared a quarterly dividend of $0.22 per share, payable March 1, 2018 to shareholders of record as of February 9, 2018.

SIGNIFICANT ITEMS OF NOTE
Results of Operations – Fourth Quarter 2017 Compared to Third Quarter 2017

  • A net loss of $6.2 million, or $(0.35) diluted earnings per share, for the three months ended December 31, 2017, as compared to net income of $10.7 million, or $0.62 diluted earnings per share, for the three months ended September 30, 2017 was primarily the result of a one-time income tax charge related to the re-measurement of the Corporation’s net deferred tax asset, triggered by Tax Reform, which was enacted on December 22, 2017. The Corporation’s net deferred tax asset on December 22, 2017, the date of the Tax Reform enactment, amounted to $39.0 million and included the Corporation’s legacy net deferred tax asset and the remainder of the net deferred tax asset acquired in the merger with Royal Bancshares of Pennsylvania, Inc. (the “Merger”). In accordance with GAAP, the combined remaining net deferred tax asset was re-measured, reducing it by $15.2 million, with a corresponding charge to income tax expense. In addition to this one-time income tax charge, the excess tax benefit related to the vesting of stock-based compensation decreased by $598 thousand from the third quarter to the fourth quarter of 2017. Other factors impacting net income included a $2.7 million increase in due diligence and merger-related expenses for the fourth quarter of 2017 as compared to the third quarter of 2017.

  • On a non-GAAP basis, core net income, which excludes the above Tax Reform-related income tax charge, due diligence and merger-related expenses and other non-core income and expense items, as detailed in the appendix to this earnings release, was $11.3 million or $0.63 per diluted share for the three months ended December 31, 2017 as compared to $11.2 million or $0.65 per diluted share for the third quarter 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.
  • Net interest income for the fourth quarter of 2017 increased $883 thousand, or 3.0%, over the prior quarter.  The provision for loan and lease losses (the “Provision”) decreased $256 thousand, or 19.2%, from the prior quarter.  Non-interest income remained flat at $15.5 million and $15.6 million for the fourth and third quarters of 2017, respectively.  Non-interest expense increased $2.9 million on a linked-quarter basis and, as noted above, was primarily due to a $2.7 million increase in due diligence and merger-related costs. Income tax expense, excluding the Tax Reform-related charge, remained flat at $4.7 million and $4.8 million for the fourth and third quarters of 2017, respectively.  However, the effective tax rate excluding the one-time Tax Reform-related income tax charge, increased from 30.7% for the three months ended September 30, 2017 to 34.5% for the three months ended December 31, 2017 primarily due to excess tax benefits from equity compensation transactions recorded during the third quarter of 2017.
     
  • Tax-equivalent net interest income for the three months ended December 31, 2017 was $30.5 million, an increase of $873 thousand over the linked quarter.  The interest-earning assets and interest-bearing liabilities acquired in the December 15, 2017 Merger contributed approximately $1.1 million to tax-equivalent net interest income. This increase was partially offset by a $433 thousand decrease in the accretion of purchase accounting adjustments between the third and fourth quarters of 2017.
     
  • Tax-equivalent interest and fees on loans and leases for the three months ended December 31, 2017 increased $1.3 million over the linked quarter.  Average loans and leases for the fourth quarter increased $124.9 million over the third quarter 2017 and experienced a two basis point decrease in tax-equivalent yield. The increase in average loans between the third and fourth quarters of 2017 was largely related to the loans acquired in the Merger which added $105.3 million in average loans and leases and contributed approximately $1.4 million in tax-equivalent interest and fee income for the fourth quarter of 2017.

    Average available for sale investment securities increased by $35.7 million over the linked quarter, and experienced a four basis point tax-equivalent yield increase. The increase in volume and yield on available for sale investment securities resulted in a $227 thousand increase in tax-equivalent interest income for the fourth quarter of 2017 as compared to the third quarter of 2017.  The majority of the Royal Bank investment portfolio was sold immediately following the Merger and did not impact interest income from available for sale investment securities.

    Interest expense on deposits for the three months ended December 31, 2017 increased $541 thousand over the linked quarter.  Average interest-bearing deposits increased $159.7 million accompanied by a six basis point increase in the rate paid on deposits.   The increase in average interest-bearing deposits was largely related to the deposits acquired in the Merger which added $91.4 million to the average balance of interest-bearing deposits for the fourth quarter of 2017 and accounted for approximately $209 thousand in interest expense during the fourth quarter of 2017.

    Average subordinated notes for the three months ended December 31, 2017 increased $14.3 million over the linked quarter with the rate paid decreasing by 28 basis points to 4.69%.  In addition to the $70 million of 4.25% fixed-to- floating subordinated notes issued on December 13, 2017, the Corporation also acquired $21.4 million of floating rate junior subordinated debentures currently at a 4.61% in connection with the Merger.  The volume increase in both borrowing types and rate decrease in the subordinated notes in the fourth quarter of 2017 resulted in a $194 thousand increase in interest expense on subordinated notes and junior subordinated debentures on a linked-quarter basis.
  • The tax-equivalent net interest margin was 3.62% for the fourth quarter and 3.71% for the third quarter of 2017.  Adjusting for the impact of the accretion of purchase accounting adjustments, the adjusted tax-equivalent net interest margin was 3.58% and 3.62% for the fourth and third quarters of 2017, respectively. 
     
  • Noninterest income for the three months ended December 31, 2017 of $15.5 million remained relatively unchanged from the third quarter of 2017. Increases of $323 thousand and $137 thousand in fees for wealth management services and insurance revenue, respectively, were offset by decreases of $243 thousand and $306 thousand in capital markets revenue and net gain on sale of loans, respectively.  
     
  • Noninterest expense for the three months ended December 31, 2017 increased $2.9 million, to $31.1 million, as compared to $28.2 million for the third quarter of 2017. The increase on a linked quarter basis was largely related to the $2.7 million increase in due diligence and merger-related expenses. The balance of the increase in noninterest expense on the linked- quarter basis was related to the addition of the Royal Bank operations, which accounted for approximately $215 thousand of noninterest expense for the second half of December 2017.
     
  • For the three months ended December 31, 2017, net loan and lease charge-offs totaled $556 thousand, as compared to $728 thousand for the third quarter of 2017. The Provision for the three months ended December 31, 2017 was $1.1 million, a $256 thousand decrease from $1.3 million for the third quarter of 2017. The credit quality of the loan and lease portfolio remains stable, with the increase in the allowance for loan and lease losses (the “Allowance”) largely related to the growth of the portfolio. During the fourth quarter, there was a $4.1 million increase in nonperforming loans related to a small number of well collateralized residential and commercial real estate loans which became nonaccrual.
     
  • Income tax expense for the fourth quarter of 2017 increased $15.2 million as compared to the third quarter of 2017. As discussed previously, this increase was primarily related to the re-measurement of the Corporation’s legacy and acquired net deferred tax asset as a result of Tax Reform enacted on December 22, 2017. Excluding this one-time charge to income tax expense, the effective tax rate for the fourth quarter of 2017 was 34.5%, as compared to 30.7% for the third quarter of 2017. The 374 basis point increase in the effective tax rate (excluding the one-time Tax Reform-related charge) over the linked quarter was primarily the result of nondeductible merger expenses in the fourth quarter of 2017 and a $598 thousand decrease in excess tax benefits associated with the vesting of stock-based compensation between the third and fourth quarters of 2017.

Results of Operations – Fourth Quarter 2017 Compared to Fourth Quarter 2016

  • As noted above, the net loss of $6.2 million for the three months ended December 31, 2017, as compared to net income of $9.4 million for the same period in 2016 was primarily the result of a one-time income tax charge related to the re-measurement of the Corporation’s net deferred tax asset, triggered by Tax Reform enacted on December 22, 2017. Other factors impacting net income included a $3.5 million increase in due diligence and merger-related expenses, a $1.8 million increase in salaries and wages and a $580 thousand increase in employee benefits for the fourth quarter of 2017 as compared to the same period in 2016. These expense increases were more than offset by a $3.3 million increase in net interest income and increases of $647 thousand, $795 thousand and $600 thousand in fees for wealth management services, insurance revenues and capital markets revenue, respectively.
     
  • Tax-equivalent net interest income for the three months ended December 31, 2017 was $30.5 million, an increase of $3.3 million over the same period in 2016.  Tax-equivalent net interest income from the assets and liabilities acquired in the December 15, 2017 Merger contributed approximately $1.1 million to this increase.  This increase was partially offset by a $471 thousand decrease in the accretion of purchase accounting adjustments between the fourth quarters of 2017 and 2016.

    Tax-equivalent interest and fees on loans and leases increased $4.0 million for the three months ended December 31, 2017 as compared to the same period in 2016.  Average loans and leases for the fourth quarter of 2017 increased $287.3 million from the same period in 2016 and experienced a ten basis point increase in tax-equivalent yield.  Excluding the effect of the accretion of purchase accounting adjustments on loans and leases, the adjusted tax-equivalent yield on loans and leases increased by 18 basis points. The increases in the prime rate during 2017 contributed to the increase in tax-equivalent yield on loans. The increase in average loans and leases for the fourth quarter of 2017 as compared to the same period in 2016 was largely related to the loans and leases acquired in the Merger which increased average loans and leases by $105.3 million and contributed approximately $1.4 million in interest and fee income on loans and leases for the fourth quarter of 2017.

    Average available for sale investment securities increased by $108.1 million for the three months ended December 31, 2017 as compared to the same period in 2016, and experienced a 30 basis point tax-equivalent yield increase. The increase in volume and yield on available for sale investment securities resulted in an $848 thousand increase in tax-equivalent interest income on available for sale investment securities for the fourth quarter of 2017 as compared to the same period in 2016.

    Partially offsetting the effect on interest income associated with the increase in average loans and leases and available for sale investment securities was a $959 thousand increase in interest expense on deposits for the fourth quarter of 2017 as compared to the same period in 2016. Average interest-bearing deposits increased by $221.9 million and were accompanied by a 14 basis point increase in rate paid between the fourth quarters of 2017 and 2016.

    In addition to the increased interest expense on deposits, a $586 thousand increase in interest expense on borrowings between the periods was attributed a $94.5 million increase in average borrowings coupled with a 19 basis point increase in rate paid on borrowings for the three months ended December 31, 2017 as compared to the same period in 2016.

    Average subordinated notes for the three months ended December 31, 2017 increased $14.3 million as compared to the same period in 2016 with the rate paid decreasing by 30 basis points to 4.69% for the three months ended December 31, 2017.  In addition to the $70 million of 4.25% fixed-to-floating subordinated notes issued on December 13, 2017, the Corporation also acquired $21.4 million of floating-rate junior subordinated debentures currently at a 4.61% in connection with the Merger.  The volume increase in both borrowing types and rate decrease in the subordinated notes in the fourth quarter of 2017 resulted in a $194 thousand increase in interest expense on subordinated notes and junior subordinated debentures for the three months ended December 31, 2017 as compared to the same period in 2016.
  • The tax-equivalent net interest margin was 3.62% for the three months ended December 31, 2017 as compared to 3.65% for the same period in 2016.  Adjusting for the impact of the accretion of purchase accounting, the adjusted tax-equivalent net interest margin was 3.58% and 3.54% for three months ended December 31, 2017 and 2016, respectively.
     
  • Noninterest income for the three months ended December 31, 2017 increased by $2.3 million, to $15.5 million, from the same period in 2016. An increase of $647 thousand in fees for wealth management services resulted as wealth assets under management, administration, supervision and brokerage increased $1.64 billion from December 31, 2016 to December 31, 2017. Insurance revenue increased $795 thousand for the fourth quarter of 2017 as compared to the same period in 2016, largely due to the May 2017 acquisition of Hirshorn Boothby. In addition, revenue from our Capital Markets initiative, which was launched in the second quarter of 2017, contributed $600 thousand to noninterest income.
     
  • Noninterest expense for the three months ended December 31, 2017 increased $6.0 million, to $31.1 million, from the same period in 2016. The increase was largely related to a $3.5 million increase in due diligence and merger-related expenses and a $1.8 million increase in salary and wages due to staffing increases from our Capital Markets initiative, the Hirshorn Boothby acquisition and the Princeton wealth management office, annual salary and wage increases and increases in incentive compensation.
     
  • For the three months ended December 31, 2017, the Provision was $1.1 million, which was unchanged from the same period in 2016. Net charge-offs for the fourth quarter of 2017 were $556 thousand as compared to $1.3 million for the same period in 2016.

Financial Condition – December 31, 2017 Compared to December 31, 2016

  • Total portfolio loans and leases of $3.29 billion as of December 31, 2017 increased by $750.4 million from December 31, 2016. Largely contributing to this increase were the $570.4 million of loans and leases acquired in the Merger. Excluding the loans and leases acquired in the Merger, the $180.0 million increase in portfolio loans and leases represents a 7.1% increase for the twelve months ended December 31, 2017.
     
  • The Allowance as of December 31, 2017 was $17.5 million, or 0.53% of portfolio loans as compared to $17.5 million, or 0.69% of portfolio loans and leases as of December 31, 2016. In addition to the ratio of Allowance to portfolio loans and leases, management also calculates two non-GAAP measures: the Allowance as a percentage of originated loans and leases, which was 0.70% as of December 31, 2017, as compared to 0.78% as of December 31, 2016, and the Allowance plus the remaining loan mark as a percentage of gross loans, which was 1.48% as of December 31, 2017, as compared to 1.17% as of December 31, 2016. A reconciliation of these and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release. The decrease in the ratio of Allowance to portfolio loans and leases was primarily related to the addition of $570.4 million of loans and leases acquired in the Merger.
     
  • Available for sale investment securities as of December 31, 2017 totaled $689.2 million, an increase of $122.2 million from December 31, 2016. The increase in available for sale investment securities was related to purchases of investment securities during 2017 in anticipation of the Merger. The majority of the available for sale investment securities acquired in the Merger were sold immediately after the closing of the transaction; no gain or loss was recognized on the sales.
     
  • Total assets as of December 31, 2017 were $4.45 billion, an increase of $1.03 billion from December 31, 2016. The Merger added $859.4 million to total assets. Organic increases in portfolio loans and leases accounted for much of the balance of the increase.
     
  • Wealth assets under management, administration, supervision and brokerage totaled $12.97 billion as of December 31, 2017, an increase of $1.64 billion from December 31, 2016. The increase in wealth assets was comprised of a $582 million increase in account balances whose fees are based on market value, and a $1.06 billion increase in fixed rate flat-fee account types.

  • Deposits of $3.37 billion as of December 31, 2017 increased $794.1 million from December 31, 2016. The Merger accounted for the addition of $593.2 million of the increase. 
     
  • Borrowings of $496.8 million as of December 31, 2017 increased $73.4 million from December 31, 2016. The increase was comprised of a $33.7 million increase in short-term borrowings, a $68.9 million increase subordinated notes, and a $21.4 million increase in junior subordinated debentures, which were assumed in the Merger. Partially offsetting these increases was a $50.6 million decrease in long-term FHLB advances.

  • The capital ratios for the Bank and the Corporation, as of December 31, 2017, as shown in the attached tables, indicate levels above the regulatory minimum to be considered “well capitalized.” In addition to the capital issued in the Merger, during the fourth quarter of 2017, regulatory capital increases at the Corporation included the issuance of $70.0 million of subordinated notes, which qualify as Tier 2 capital and the acquisition of $21.4 million of junior subordinated debentures, which are carried in Tier 1 capital. On the Bank level, the Corporation down-streamed $15.0 million of capital to the Bank, increasing its Tier 1 capital balance.

Organic Loan and Lease Growth - September 30, 2017 to December 31, 2017

Total portfolio loans and leases as of December 31, 2017 were $3.29 billion, as compared to $2.68 billion as of September 30, 2017, an increase of $608.5 million. Loans and leases acquired in the Merger totaled $570.4 million, resulting in net organic loan growth of $38.1 million, or 5.7% annualized, for the fourth quarter of 2017.  This growth was muted relative to the annual organic growth rate of approximately 7% as the Corporation elected to reduce its exposure to construction loans in anticipation of the Royal Bank merger.  Also contributing to the lower growth rate was a decrease in residential loan balances as the Corporation was impacted by the general decrease in mortgage lending activity.

Future Effect of Purchase Accounting Adjustments Recorded in the Merger

Amounts presented in the table below reflect estimated fair value adjustments to interest-earning assets and interest-bearing liabilities acquired in the Merger. A portion of these fair value adjustments will be accreted or amortized as adjustments to net interest income over future periods. The accretable portion of the fair value adjustment to loans and leases will be accreted on a level-yield basis as the loans and leases pay down. The amortization of the fair value adjustments on FHLB advances and junior subordinated debentures will be recognized over 3.7 years and 16.9 years, respectively. The accretion of the fair value adjustments on time deposits will be recognized over a weighted average life of approximately 1.3 years.

(dollars in thousands)Acquired Balance (Accretable)/
Amortizable
Fair Value
Adjustment
 Nonaccretable
Fair Value
Adjustment
 Recorded Fair
Value
 
Interest-earning assets:            
  Loans and leases$597,435 $(15,990)$(11,072)$570,373 
Interest-bearing liabilities:            
  Time deposits$197,841 $(2,535)$ $200,376 
  FHLB advances and other borrowings  $75,000 $432 $ $74,568 
  Junior subordinated debentures$25,774 $4,358 $ $21,416 

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 For the Twelve Months Ended 
 December 31, 2017 September 30, 2017 June 30, 2017 March 31, 2017 December 31, 2016 December 31, 2017 December 31, 2016 
Consolidated Balance Sheet (selected items)              
Interest-bearing deposits with banks$  48,367  $  36,870  $  30,806  $  69,978  $  34,206      
Investment securities   701,744     482,399     452,869     400,360     573,763      
Loans held for sale   3,794     6,327     8,590     3,015     9,621      
Portfolio loans and leases   3,285,857     2,677,345     2,666,651     2,555,589     2,535,425      
Allowance for loan and lease losses ("ALLL")   (17,525)    (17,004)    (16,399)    (17,107)    (17,486)     
Goodwill and other intangible assets   205,855     128,534     129,211     124,629     125,170      
Total assets   4,449,720     3,476,821     3,438,219     3,292,617     3,421,530      
Deposits - interest-bearing   2,448,954     1,923,567     1,863,288     1,865,009     1,843,495      
Deposits - non-interest-bearing   924,844     760,614     818,475     771,556     736,180      
Short-term borrowings   237,865     180,874     130,295     23,613     204,151      
Long-term FHLB advances and other borrowings   139,140     134,651     164,681     174,711     189,742      
Subordinated notes   98,416     29,573     29,559     29,546     29,532      
Total liabilities   3,921,601     3,074,929     3,043,242     2,904,522     3,040,403      
Total shareholders' equity   528,119     401,892     394,977     388,095     381,127      
               
Average Balance Sheet (selected items)              
Interest-bearing deposits with banks$  43,962  $  26,628  $  26,266  $  39,669  $  55,298  $  34,122  $  43,214  
Investment securities   499,968     462,700     429,400     393,306     386,658     446,681     373,134  
Loans held for sale   3,966     3,728     3,855     4,238     11,591     3,945     9,466  
Portfolio loans and leases   2,801,289     2,676,589     2,611,755     2,551,439     2,506,376     2,660,999     2,419,950  
Total interest-earning assets   3,349,185     3,169,645     3,071,276     2,988,652     2,959,923     3,145,747     2,845,764  
Goodwill and intangible assets   142,652     128,917     126,537     124,884     125,614     130,791     126,950  
Total assets   3,640,667     3,441,906     3,333,307     3,244,060     3,215,868     3,416,146     3,105,650  
Deposits - interest-bearing   2,031,170     1,871,494     1,853,660     1,852,194     1,809,276     1,902,536     1,722,724  
Short-term borrowings   180,650     182,845     98,869     47,603     40,629     128,008     37,041  
Long-term FHLB advances   134,605     155,918     171,567     182,507     198,454     161,004     225,815  
Subordinated notes   43,844     29,564     29,550     29,537     29,523     33,153     29,503  
Jr. subordinated debentures   3,957             997    
Total interest-bearing liabilities   2,394,226     2,239,821     2,153,646     2,111,841     2,077,882     2,225,698     2,015,083  
Total liabilities   3,213,349     3,044,549     2,943,591     2,861,846     2,837,825     3,016,876     2,736,121  
Total shareholders' equity   427,318     397,357     389,716     382,214     378,043     399,270     369,529  
               
Income Statement              
Net interest income$  30,321  $  29,438  $  27,965  $  27,403  $  26,990  $  115,127  $  106,236  
Provision for loan and lease losses   1,077     1,333     (83)    291     1,059     2,618     4,326  
Noninterest income   15,536     15,584     14,785     13,227     13,248     59,132     54,039  
Noninterest expense   31,056     28,184     28,495     26,660     25,087     114,395     101,745  
Income tax expense   19,924     4,766     4,905     4,635     4,684     34,230     18,168  
Net income   (6,200)    10,739     9,433     9,044     9,408     23,016     36,036  
Basic earnings per share   (0.35)    0.63     0.56     0.53     0.56     1.34     2.14  
Diluted earnings per share   (0.35)    0.62     0.55     0.53     0.55     1.32     2.12  
Net income (core) (1)   11,255     11,245     10,236     9,375     9,402     42,111     36,086  
Basic earnings per share (core) (1)   0.64     0.66     0.60     0.55     0.56     2.46     2.14  
Diluted earnings per share (core) (1)   0.63     0.65     0.59     0.55     0.55     2.42     2.12  
Cash dividends paid per share   0.22     0.22     0.21     0.21     0.21     0.86     0.82  
Profitability Indicators              
Return on average assets -0.68%  1.24%  1.14%  1.13%  1.16%  0.67%  1.16% 
Return on average equity -5.75%  10.72%  9.71%  9.60%  9.90%  5.76%  9.75% 
Return on tangible equity(1) -8.03%  16.52%  15.06%  14.96%  15.68%  9.23%  15.79% 
Return on average assets (core)(1) 1.23%  1.31%  1.23%  1.17%  1.16%  1.23%  1.16% 
Tax-equivalent net interest margin 3.62%  3.71%  3.68%  3.74%  3.65%  3.69%  3.76% 
Efficiency ratio(1) 58.64%  59.30%  62.16%  62.66%  60.30%  60.61%  61.27% 
Share Data              
Closing share price$  44.20  $  43.80  $  42.50  $  39.50  $  42.15      
Book value per common share$  26.19  $  23.57  $  23.25  $  22.87  $  22.50      
Tangible book value per common share$  15.98  $  16.03  $  15.64  $  15.53  $  15.11      
Price / book value 168.74%  185.82%  182.81%  172.71%  187.34%     
Price / tangible book value 276.53%  273.19%  271.69%  254.41%  278.96%     
Weighted average diluted shares outstanding   17,632,701     17,253,982     17,232,767     17,182,689     17,164,675     17,381,232     17,028,122  
Shares outstanding, end of period   20,161,795     17,050,151     16,989,849     16,969,451     16,939,715      
Wealth Management Information:              
Wealth assets under mgmt, administration, supervision and brokerage (2)$  12,968,738  $  12,431,370  $  12,050,555  $  11,725,460  $  11,328,457      
Fees for wealth management services$  9,974  $  9,651  $  9,807  $  9,303  $  9,327      
Capital Ratios              
Bryn Mawr Trust Company              
Tier I capital to risk weighted assets ("RWA") 11.10%  10.78%  10.29%  10.58%  10.50%     
Total (Tier II) capital to RWA 11.64%  11.42%  10.90%  11.25%  11.19%     
Tier I leverage ratio 9.02%  8.79%  8.76%  8.83%  8.73%     
Tangible equity ratio (1) 8.67%  8.46%  8.24%  8.46%  7.85%     
Common equity Tier I capital to RWA 11.10%  10.78%  10.29%  10.58%  10.50%     
               
Bryn Mawr Bank Corporation              
Tier I capital to RWA 10.36%  10.50%  10.10%  10.50%  10.51%     
Total (Tier II) capital to RWA 13.85%  12.23%  11.79%  12.30%  12.35%     
Tier I leverage ratio 8.49%  8.53%  8.63%  8.77%  8.73%     
Tangible equity ratio (1) 7.61%  8.16%  8.03%  8.32%  7.76%     
Common equity Tier I capital to RWA 9.80%  10.50%  10.10%  10.50%  10.51%     
               
Asset Quality Indicators              
               
Net loan and lease charge-offs ("NCO"s)$  556  $  728  $  625  $  670  $  1,317  $  1,909  $  2,697  
Nonperforming loans and leases ("NPL"s)$  8,579  $  4,472  $  7,237  $  7,329  $  8,363      
Other real estate owned ("OREO")   1,554     865     1,122     978     1,017      
Total nonperforming assets ("NPA"s)$   10,133   $   5,337   $   8,359   $   8,307   $   9,380       
               
Nonperforming loans and leases 30 or more days past due$  6,983  $  2,337  $  4,076  $  5,097  $  6,072      
Performing loans and leases 30 to 89 days past due   7,958     4,558     6,258     6,077     3,062      
Performing loans and leases 90 or more days past due   -     -     -     -     -      
Total delinquent loans and leases$   14,941   $   6,895   $   10,334   $   11,174   $   9,134       
               
Delinquent loans and leases to total loans and leases 0.45%  0.26%  0.39%  0.44%  0.36%     
Delinquent performing loans and leases to total loans and leases 0.24%  0.17%  0.23%  0.24%  0.12%     
NCOs / average loans and leases (annualized) 0.08%  0.11%  0.10%  0.11%  0.21%  0.07%  0.11% 
NPLs / total portfolio loans and leases 0.26%  0.17%  0.27%  0.29%  0.33%     
NPAs / total loans and leases and OREO 0.31%  0.20%  0.31%  0.32%  0.37%     
NPAs / total assets 0.23%  0.15%  0.24%  0.25%  0.27%     
ALLL / NPLs 204.28%  380.23%  226.60%  233.42%  209.09%     
ALLL / portfolio loans 0.53%  0.64%  0.61%  0.67%  0.69%     
ALLL on originated loans and leases / Originated loans and leases (1) 0.70%  0.70%  0.68%  0.75%  0.78%     
(Total Allowance + Loan mark) / Total Gross portfolio loans and leases (1) 1.48%  1.01%  1.03%  1.12%  1.17%     
               
Troubled debt restructurings ("TDR"s) included in NPLs$  3,289  $  2,033  $  2,470  $  2,681  $  2,632      
TDRs in compliance with modified terms   5,800     6,597     6,148     6,492     6,395      
Total TDRs$   9,089   $   8,630   $   8,618   $   9,173   $   9,027       
               
(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.             
               

 

Bryn Mawr Bank Corporation            
Detailed Balance Sheets (unaudited)            
(dollars in thousands)            
             
 December 31, 2017 September 30, 2017 June 30, 2017 March 31, 2017 December 31, 2016   
Assets            
Cash and due from banks$  11,657  $  8,682  $  19,352  $  17,457  $  16,559    
Interest-bearing deposits with banks   48,367     36,870     30,806     69,978     34,206    
  Cash and cash equivalents   60,024     45,552     50,158     87,435     50,765    
Investment securities, available for sale   689,202     471,721     443,687     391,028     566,996    
Investment securities, held to maturity   7,932     6,255     5,161     5,194     2,879    
Investment securities, trading   4,610     4,423     4,021     4,138     3,888    
Loans held for sale   3,794     6,327     8,590     3,015     9,621    
Portfolio loans and leases, originated   2,487,295     2,433,054     2,409,964     2,286,814     2,240,987    
Portfolio loans and leases, acquired   798,562     244,291     256,687     268,775     294,438    
  Total portfolio loans and leases   3,285,857     2,677,345     2,666,651     2,555,589     2,535,425    
Less: Allowance for losses on originated loan and leases   (17,475)    (16,957)    (16,374)    (17,069)    (17,458)   
Less: Allowance for losses on acquired loan and leases   (50)    (47)    (25)    (38)    (28)   
  Total allowance for loan and lease losses   (17,525)    (17,004)    (16,399)    (17,107)    (17,486)   
  Net portfolio loans and leases   3,268,332     2,660,341     2,650,252     2,538,482     2,517,939    
Premises and equipment   54,458     44,544     44,446     40,515     41,778    
Accrued interest receivable   14,246     9,287     8,717     8,392     8,533    
Mortgage servicing rights   5,861     5,732     5,683     5,686     5,582    
Bank owned life insurance   56,667     39,881     39,680     39,479     39,279    
Federal Home Loan Bank ("FHLB") stock   20,083     16,248     15,168     8,505     17,305    
Goodwill   179,889     107,127     107,127     104,765     104,765    
Intangible assets   25,966     21,407     22,084     19,864     20,405    
Other investments   12,470     8,941     8,682     8,716     8,627    
Other assets   46,186     29,035     24,763     27,403     23,168    
  Total assets$  4,449,720  $  3,476,821  $  3,438,219  $  3,292,617  $  3,421,530    
                       
Liabilities            
Deposits            
  Noninterest-bearing$  924,844  $  760,614  $  818,475  $  771,556  $  736,180    
  Interest-bearing   2,448,954     1,923,567     1,863,288     1,865,009     1,843,495    
  Total deposits   3,373,798     2,684,181     2,681,763     2,636,565     2,579,675    
Short-term borrowings   237,865     180,874     130,295     23,613     204,151    
Long-term FHLB advances   139,140     134,651     164,681     174,711     189,742    
Subordinated notes   98,416     29,573     29,559     29,546     29,532    
Jr. subordinated debentures   21,416     -     -     -     -    
Accrued interest payable   3,527     2,267     2,830     2,722     2,734    
Other liabilities   47,439     43,383     34,114     37,365     34,569    
  Total liabilities   3,921,601     3,074,929     3,043,242     2,904,522     3,040,403    
             
Shareholders' equity            
Common stock   24,360     21,248     21,162     21,141     21,111    
Paid-in capital in excess of par value   371,486     235,412     234,654     233,910     232,806    
Less: common stock held in treasury, at cost   (68,179)    (68,134)    (67,091)    (66,969)    (66,950)   
Accumulated other comprehensive (loss) income, net of tax   (4,414)    (1,400)    (1,564)    (1,990)    (2,409)   
Retained earnings   205,549     214,766     207,816     202,003     196,569    
  Total Bryn Mawr Bank Corporation shareholders' equity   528,802     401,892     394,977     388,095     381,127    
Noncontrolling interest   (683)    -     -     -     -    
  Total shareholders' equity   528,119     401,892     394,977     388,095     381,127    
  Total liabilities and shareholders' equity$  4,449,720  $  3,476,821  $  3,438,219  $  3,292,617  $  3,421,530    
                       

 

Bryn Mawr Bank Corporation             
Supplemental Balance Sheet Information (unaudited)             
(dollars in thousands)             
 Portfolio Loans and Leases as of    
 December 31, 2017 September 30, 2017 June 30, 2017 March 31, 2017 December 31, 2016    
Commercial mortgages$  1,523,376  $  1,224,571  $  1,197,936  $  1,137,870  $  1,110,897     
Home equity loans and lines   218,275     206,974     208,480     203,962     208,000     
Residential mortgages   458,886     422,524     416,488     418,264     413,540     
Construction   212,454     133,505     156,581     145,699     141,964     
  Total real estate loans   2,412,991     1,987,574     1,979,485     1,905,795     1,874,401     
Commercial & Industrial   719,312     597,595     599,203     567,917     579,791     
Consumer   38,153     31,306     28,485     23,932     25,341     
Leases   115,401     60,870     59,478     57,945     55,892     
  Total non-real estate loans and leases   872,866     689,771     687,166     649,794     661,024     
     Total portfolio loans and leases$  3,285,857  $  2,677,345  $  2,666,651  $  2,555,589  $  2,535,425     
                        
              
 Nonperforming Loans and Leases as of    
 December 31, 2017 September 30, 2017 June 30, 2017 March 31, 2017 December 31, 2016    
Commercial mortgages$  872  $  193  $  818  $  315  $  320     
Home equity loans and lines   1,481     613     1,535     1,828     2,289     
Residential mortgages   4,417     1,589     2,589     2,640     2,658     
Construction   -     -     -     -     -     
  Total nonperforming real estate loans   6,770     2,395     4,942     4,783     5,267     
Commercial & Industrial   1,706     1,977     2,112     2,471     2,957     
Consumer   -     -     10     -     2     
Leases   103     100     173     75     137     
  Total nonperforming non-real estate loans and leases   1,809     2,077     2,295     2,546     3,096     
     Total nonperforming portfolio loans and leases$  8,579  $  4,472  $  7,237  $  7,329  $  8,363     
                        
              
 Net Loan and Lease Charge-Offs (Recoveries) for the Three Months Ended    
 December 31, 2017 September 30, 2017 June 30, 2017 March 31, 2017 December 31, 2016    
Commercial mortgage$  51  $  (3) $  (3) $  (3) $  (51)    
Home equity loans and lines   (5)    69     169     438     69     
Residential   88     3     43     27     28     
Construction   (1)    (1)    (1)    (1)    (1)    
  Total net charge-offs of real estate loans   133     68     208     461     45     
Commercial & Industrial   125     298     185     59     1,128     
Consumer   55     36     16     39     42     
Leases   243     326     216     111     102     
  Total net charge-offs of non-real estate loans and leases   423     660     417     209     1,272     
     Total net charge-offs$  556  $  728  $  625  $  670  $  1,317     
                        

 

Bryn Mawr Bank Corporation            
Supplemental Balance Sheet Information (unaudited)            
(dollars in thousands)            
 Investment Securities Available for Sale, at Fair Value   
 December 31, 2017 September 30, 2017 June 30, 2017 March 31, 2017 December 31, 2016   
U.S. Treasury securities $  200,088  $  100  $  100  $  100  $  200,097    
Obligations of the U.S. Government and agencies    151,044     142,711     126,468     100,476     82,198    
State & political subdivisions - tax-free   21,138     23,556     26,958     30,416     33,005    
State & political subdivisions - taxable   172     524     524     524     525    
Mortgage-backed securities   274,990     260,680     230,617     197,420     185,951    
Collateralized mortgage obligations   36,662     39,595     42,549     45,476     48,694    
Other debt securities   1,599     1,100     1,099     1,299     1,299    
Bond mutual funds   -     -     11,956     11,920     11,895    
Other investments   3,509     3,455     3,416     3,397     3,332    
  Total investment securities available for sale, at fair value$  689,202  $  471,721  $  443,687  $  391,028  $  566,996    
                       
             
 Unrealized Gain (Loss) on Investment Securities Available for Sale   
 December 31, 2017 September 30, 2017 June 30, 2017 March 31, 2017 December 31, 2016   
U.S. Treasury securities $  11  $  -  $  -  $  -  $  3    
Obligations of the U.S. Government and agencies    (1,984)    (920)    (699)    (803)    (913)   
State & political subdivisions - tax-free   (42)    23     11     (10)    (96)   
State & political subdivisions - taxable   -     1     1     1     2    
Mortgage-backed securities   (968)    869     480     196     (47)   
Collateralized mortgage obligations   (934)    (640)    (662)    (777)    (794)   
Other debt securities   (1)    -     (1)    (1)    (1)   
Bond mutual funds   -     -     -     (36)    (61)   
Other investments   296     230     203     132     13    
  Total unrealized (losses) gains on investment securities available for sale$  (3,622) $  (437) $  (667) $  (1,298) $  (1,894)   
                       
             
 Deposits   
 December 31, 2017 September 30, 2017 June 30, 2017 March 31, 2017 December 31, 2016   
Interest-bearing deposits:            
  Interest-bearing checking$  481,336  $  395,383  $  381,345  $  395,131  $  379,424    
  Money market   862,639     720,613     729,859     757,071     761,657    
  Savings   338,572     264,273     254,903     255,791     232,193    
  Wholesale non-maturity deposits   62,276     48,620     54,675     69,471     74,272    
  Wholesale time deposits   171,929     178,610     120,524     68,164     73,037    
  Retail time deposits    532,202     316,068     321,982     319,381     322,912    
     Total interest-bearing deposits   2,448,954     1,923,567     1,863,288     1,865,009     1,843,495    
  Noninterest-bearing deposits   924,844     760,614     818,475     771,556     736,180    
        Total deposits$  3,373,798  $  2,684,181  $  2,681,763  $  2,636,565  $  2,579,675    
                       

 

Bryn Mawr Bank Corporation               
Detailed Income Statements (unaudited)               
(dollars in thousands, except per share data)               
 For the Three Months Ended For the Twelve Months Ended  
 December 31, 2017 September 30, 2017 June 30, 2017 March 31, 2017 December 31, 2016 December 31, 2017 December 31, 2016  
Interest income:               
Interest and fees on loans and leases$  32,245  $  30,892  $  29,143  $  28,482  $  28,230  $  120,762  $  110,536   
Interest on cash and cash equivalents   37     36     35     66     53     174     168   
Interest on investment securities   2,516     2,270     2,059     1,778     1,639     8,623     6,287   
  Total interest income   34,798     33,198     31,237     30,326     29,922     129,559     116,991   
Interest expense:                             
Interest on deposits   2,739     2,198     1,983     1,828     1,780     8,748     5,833   
Interest on short-term borrowings   579     547     237     27     22     1,390     93   
Interest on FHLB advances and other borrowings   595     645     682     698     760     2,620     3,353   
Interest on jr. subordinated debentures   46     -     -     -     -     46     -   
Interest on subordinated notes   518     370     370     370     370     1,628     1,476   
Total interest expense   4,477     3,760     3,272     2,923     2,932     14,432     10,755   
  Net interest income   30,321     29,438     27,965     27,403     26,990     115,127     106,236   
Provision for loan and lease losses (the "Provision")   1,077     1,333     (83)    291     1,059     2,618     4,326   
  Net interest income after Provision   29,244     28,105     28,048     27,112     25,931     112,509     101,910   
Noninterest income:               
Fees for wealth management services    9,974     9,651     9,807     9,303     9,327     38,735     36,690   
Insurance revenue   1,510     1,373     943     763     715     4,589     3,722   
Capital markets revenue   600     843     953     -     -     2,396     -   
Service charges on deposits   655     676     630     647     688     2,608     2,791   
Loan servicing and other fees   536     548     519     503     411     2,106     1,939   
Net gain on sale of loans   493     799     520     629     607     2,441     3,048   
Net gain (loss) on sale of investment securities available for sale   28     72     -     1     9     101     (77)  
Net (loss) gain on sale of other real estate owned   (92)    -     (12)    -     -     (104)    (76)  
Dividends on FHLB and FRB stocks   290     217     218     214     309     939     1,063   
Other operating income   1,542     1,405     1,207     1,167     1,182     5,321     4,868   
  Total noninterest income   15,536     15,584     14,785     13,227     13,248     59,132     53,968   
Noninterest expense:               
Salaries and wages    13,619     13,602     13,580     12,450     11,855     53,251     47,411   
Employee benefits    2,787     2,631     2,475     2,559     2,207     10,452     9,548   
Occupancy and bank premises   2,648     2,485     2,247     2,526     2,407     9,906     9,611   
Furniture, fixtures and equipment   1,816     1,726     1,869     1,974     1,869     7,385     7,520   
Advertising   386     277     405     386     391     1,454     1,381   
Amortization of intangible assets   677     677     687     693     830     2,734     3,498   
Impairment (recovery) of mortgage servicing rights ("MSRs")   (94)    3     43     3     (580)    (45)    131   
Due diligence, merger-related and merger integration expenses   3,507     850     1,236     511     -     6,104     -   
Professional fees   769     739     1,049     711     963     3,268     3,659   
Pennsylvania bank shares tax   16     317     297     664     (204)    1,294     1,749   
Information technology   1,006     880     821     874     857     3,581     3,661   
Other operating expenses    3,919     3,997     3,786     3,309     4,492     15,011     13,505   
  Total noninterest expense   31,056     28,184     28,495     26,660     25,087     114,395     101,674   
Income before income taxes   13,724     15,505     14,338     13,679     14,092     57,246     54,204   
Income tax expense   19,924     4,766     4,905     4,635     4,684     34,230     18,168   
     Net income$  (6,200) $  10,739  $  9,433  $  9,044  $  9,408  $  23,016  $  36,036   
Per share data:                             
Weighted average shares outstanding   17,632,701     17,023,046     16,984,563     16,954,132     16,916,705     17,150,126     16,859,623   
Dilutive common shares   -     230,936     248,204     228,557     247,970     231,106     168,499   
Weighted average diluted shares    17,632,701     17,253,982     17,232,767     17,182,689     17,164,675     17,381,232     17,028,122   
Basic earnings (loss) per common share$  (0.35) $  0.63  $  0.56  $  0.53  $  0.56  $  1.34  $  2.14   
Diluted earnings (loss) per common share$  (0.35) $  0.62  $  0.55  $  0.53  $  0.55  $  1.32  $  2.12   
Dividend declared per share$  0.22  $  0.22  $  0.21  $  0.21  $  0.21  $  0.86  $  0.82   
Effective tax rate 145.18%  30.74%  34.21%  33.88%  33.24%  59.79%  33.52%  
                
                

 

Bryn Mawr Bank Corporation
Tax-Equivalent Net Interest Margin (unaudited)
(dollars in thousands, except per share data)
  For The Three Months Ended For The Twelve Months Ended
  December 31, 2017September 30, 2017June 30, 2017March 31, 2017December 31, 2016 December 31, 2017December 31, 2016
(dollars in thousands) Average BalanceInterest Income/ ExpenseAverage Rates Earned/ PaidAverage BalanceInterest Income/ ExpenseAverage Rates Earned/ PaidAverage BalanceInterest Income/ ExpenseAverage Rates Earned/ PaidAverage BalanceInterest Income/ ExpenseAverage Rates Earned/ PaidAverage BalanceInterest Income/ ExpenseAverage Rates Earned/ Paid Average BalanceInterest Income/ ExpenseAverage Rates Earned/ PaidAverage BalanceInterest Income/ ExpenseAverage Rates Earned/ Paid
                        
Assets:                       
Interest-bearing deposits with other banks $  43,962 $  37 0.33%$  26,628 $  36 0.54%$  26,266 $  35 0.53%$  39,669 $  66 0.67%$  55,298 $  53 0.38% $  34,122 $  174 0.51%$  43,214 $  168 0.39%
Investment securities - available for sale:                       
  Taxable    465,393    2,394 2.04%   427,106    2,160 2.01%   391,112    1,940 1.99%   354,229    1,653 1.89%   344,931    1,498 1.73%    409,813    8,229 2.01%   329,161    5,784 1.76%
  Tax-exempt    22,640    127 2.23%   25,268    134 2.10%   28,970    150 2.08%   31,485    164 2.11%   34,985    175 1.99%    27,062    575 2.12%   38,173    742 1.94%
     Total investment securities - available for sale     488,033    2,521 2.05%   452,374    2,294 2.01%   420,082    2,090 2.00%   385,714    1,817 1.91%   379,916    1,673 1.75%    436,875    8,804 2.02%   367,334    6,526 1.78%
                        
Investment securities  - held to maturity    7,510    11 0.58%   6,044    11 0.72%   5,181    5 0.39%   3,702    7 0.77%   2,889    7 0.96%    5,621    4 0.07%   2,060    4 0.19%
Investment securities  - trading    4,425    25 2.24%   4,282    8 0.74%   4,137    13 1.26%   3,890    8 0.83%   3,853    16 1.65%    4,185    2 0.05%   3,740    2 0.05%
                        
Loans and leases *    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%   2,517,967    28,354 4.48%    2,664,944    121,391 4.56%   2,429,416    110,925 4.57%
                        
  Total interest-earning assets     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%   2,959,923    30,103 4.05%    3,145,747    130,375 4.14%   2,845,764    117,625 4.13%
                        
Cash and due from banks    6,855      15,709      15,727      14,942      16,127       13,293      16,317   
Less: allowance for loan and lease losses    (17,046)     (16,564)     (17,549)     (17,580)     (17,858)      (17,181)     (17,159)  
Other assets     301,673      273,116      263,853      258,046      257,676       274,287      260,728   
                        
  Total assets $  3,640,667   $  3,441,906   $  3,333,307   $  3,244,060   $  3,215,868    $  3,416,146   $  3,105,650   
                        
Liabilities:                       
                        
Interest-bearing deposits:                       
  Savings, NOW and market rate deposits $  1,410,461 $  897 0.25%$  1,359,293 $  823 0.24%$  1,375,949 $  813 0.24%$  1,388,561 $  756 0.22%$  1,328,577 $  686 0.21% $  1,383,560 $  3,289 0.24%$  1,292,228 $  2,485 0.19%
  Wholesale deposits    262,643    822 1.24%   190,849    548 1.14%   154,424    378 0.98%   143,461    317 0.90%   156,541    319 0.81%    188,179    2,065 1.10%   163,724    1,240 0.76%
  Retail time deposits     358,066    1,020 1.13%   321,352    827 1.02%   323,287    792 0.98%   320,172    755 0.96%   324,158    775 0.95%    330,797    3,394 1.03%   266,772    2,108 0.79%
     Total interest-bearing deposits    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%   1,809,276    1,780 0.39%    1,902,536    8,748 0.46%   1,722,724    5,833 0.34%
                        
Borrowings:                       
Short-term borrowings    180,650    579 1.27%   182,845    547 1.19%   98,869    237 0.96%   47,603    27 0.23%   40,629    22 0.22%    128,008    1,390 1.09%   37,041    93 0.25%
Long-term FHLB advances    134,605    595 1.75%   155,918    645 1.64%   171,567    682 1.59%   182,507    698 1.55%   198,454    760 1.52%    161,004    2,620 1.63%   225,815    3,353 1.48%
Jr. subordinated debt    3,957    46 4.61%   -    -     -    -     -    -     -    -      997    46 4.61%   
Subordinated notes    43,844    518 4.69%   29,564    370 4.97%   29,550    370 5.02%   29,537    370 5.08%   29,523    370 4.99%    33,153    1,628 4.91%   29,503    1,476 5.00%
     Total borrowings    363,056    1,738 1.90%   368,327    1,562 1.68%   299,986    1,289 1.72%   259,647    1,095 1.71%   268,606    1,152 1.71%    323,162    5,684 1.76%   292,359    4,922 1.68%
                        
     Total interest-bearing liabilities    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%   2,077,882    2,932 0.56%    2,225,698    14,432 0.65%   2,015,083    10,755 0.53%
                        
Noninterest-bearing deposits    771,519      764,562      755,597      711,794      724,465       751,069      687,134   
Other liabilities    47,604      40,166      34,348      38,211      35,478       40,109      33,904   
     Total noninterest-bearing liabilities    819,123      804,728      789,945      750,005      759,943       791,178      721,038   
                        
     Total liabilities    3,213,349      3,044,549      2,943,591      2,861,846      2,837,825       3,016,876      2,736,121   
                        
Shareholders' equity     427,318      397,357      389,716      382,214      378,043       399,270      369,529   
                        
     Total liabilities and shareholders' equity  $  3,640,667   $  3,441,906   $  3,333,307   $  3,244,060   $  3,215,868    $  3,416,146   $  3,105,650   
                        
Net interest spread   3.41%  3.51%  3.50%  3.58%  3.49%   3.49%  3.60%
Effect of noninterest-bearing sources   0.21%  0.20%  0.18%  0.16%  0.16%   0.20%    0.16%
                          
Tax-equivalent net interest margin   $  30,520 3.62% $  29,647 3.71% $  28,180 3.68% $  27,597 3.74% $  27,171 3.65%  $  115,943 3.69% $  106,870 3.76%
                        
Tax-equivalent adjustment   $  199 0.02% $  209 0.03% $  215 0.03% $  194 0.02% $  181 0.02%  $  816 0.03% $  634 0.02%
                                                           
Supplemental Information Regarding Accretion of Fair Value Marks
    Interest Income (Expense) Effect Effect on Yield or Rate  Interest Income (Expense) Effect Effect on Yield or Rate  Interest Income (Expense) Effect Effect on Yield or Rate  Interest Income (Expense) Effect Effect on Yield or Rate  Interest Income (Expense) Effect Effect on Yield or Rate   Interest Income (Expense) Effect Effect on Yield or Rate  Interest Income (Expense) Effect Effect on Yield or Rate
Loans and leases  $  276 0.04% $  708 0.10% $  402 0.06% $  726 0.12% $  742 0.12%  $  2,112 0.08% $  3,349 0.14%
Retail time deposits     (13)-0.01%    (15)-0.02%    (18)-0.02%    (19)-0.02%    (19)-0.02%     (65)-0.02%    (219)-0.08%
Short-term borrowings     - 0.00%    - 0.00%    - 0.00%    - 0.00%    - 0.00%     - 0.00%    (12)-0.03%
Long-term FHLB advances and other borrowings     (31)-0.09%    (30)-0.08%    (30)-0.07%    (30)-0.07%    (30)-0.06%     (121)-0.08%    (120)-0.05%
Net interest income from fair value marks  $  320   $  753   $  450   $  775   $  791    $  2,298   $  3,700  
Purchase accounting effect on tax-equivalent margin    0.04%    0.09%    0.06%    0.11%    0.11%     0.07%    0.13%
* 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 As of or For the Twelve Months Ended 
 December 31, 2017 September 30, 2017 June 30, 2017 March 31, 2017 December 31, 2016 December 31, 2017 December 31, 2016 
Reconciliation of Net Income to Net Income (core):              
Net income (a GAAP measure)$  (6,200) $  10,739  $  9,433  $  9,044  $  9,408  $  23,016  $  36,036  
Less: Tax-effected non-core noninterest income:              
  (Gain) loss on sale of investment securities available for sale   (18)    (47)    -     (1)    (6)    (66)    50  
Add: Tax-effected non-core noninterest expense items:              
  Due diligence, merger-related and merger integration  expenses   2,280     553     803     332     -     3,968     -  
Add: One-time federal income tax expense related to re-measurement of net deferred tax asset due to tax reform legislation.   15,193     -     -     -     -     15,193     -  
Net income (core) (a non-GAAP measure)$   11,255   $   11,245   $   10,236   $   9,375   $   9,402   $   42,111   $   36,086   
                             
Calculation of Basic and Diluted Earnings per Common Share (core):             
Weighted average common shares outstanding   17,632,701     17,023,046     16,984,563     16,954,132     16,916,705     17,150,126     16,859,623  
Dilutive common shares   231,038     230,936     248,204     228,557     247,970     231,106     177,491  
Weighted average diluted shares    17,863,739     17,253,982     17,232,767     17,182,689     17,164,675     17,381,232     17,037,114  
Basic earnings per common share (core) (a non-GAAP measure)$  0.64  $  0.66  $  0.60  $  0.55  $  0.56  $  2.46  $  2.14  
Diluted earnings per common share (core) (a non-GAAP measure)$  0.63  $  0.65  $  0.59  $  0.55  $  0.55  $  2.42  $  2.12  
               
Calculation of Return on Average Tangible Equity:              
Net income (loss)$  (6,200) $  10,739  $  9,433  $  9,044  $  9,408  $  23,016  $  36,036  
Add: Tax-effected amortization and impairment of intangible assets   440     440     447     450     540     1,777     2,274  
Net tangible income (numerator)$  (5,760) $  11,179  $  9,880  $  9,494  $  9,948  $  24,793  $  38,310  
               
Average shareholders' equity$  427,318  $  397,357  $  389,716  $  382,214  $  378,043  $  399,270  $  369,529  
Less: Average goodwill and intangible assets   (142,652)    (128,917)    (126,537)    (124,884)    (125,614)    (130,791)    (126,950) 
Net average tangible equity (denominator)$  284,666  $  268,440  $  263,179  $  257,330  $  252,429  $  268,479  $  242,579  
               
Return on tangible equity (a non-GAAP measure) -8.03%  16.52%  15.06%  14.96%  15.68%  9.23%  15.79% 
               
Calculation of Tangible Equity Ratio:              
Total shareholders' equity$  528,119  $  401,892  $  394,977  $  388,095  $  381,127      
Less: Goodwill and intangible assets   (205,855)    (128,534)    (129,211)    (124,629)    (125,170)     
Net tangible equity (numerator)$  322,264  $  273,358  $  265,766  $  263,466  $  255,957      
               
Total assets$  4,449,720  $  3,476,821  $  3,438,219  $  3,292,617  $  3,421,530      
Less: Goodwill and intangible assets   (205,855)    (128,534)    (129,211)    (124,629)    (125,170)     
Tangible assets (denominator)$  4,243,865  $  3,348,287  $  3,309,008  $  3,167,988  $  3,296,360      
               
Tangible equity ratio 7.59%  8.16%  8.03%  8.32%  7.76%     
               
Calculation of Return on Average Assets (core)              
Return on average assets (GAAP) -0.68%  1.25%  1.12%  1.13%  1.16%  0.67%  1.16% 
Effect of adjustment to GAAP net income to core net income 1.90%  0.06%  0.10%  0.04%  0.00%  0.56%  0.00% 
Return on average assets (core) 1.23%  1.31%  1.22%  1.17%  1.16%  1.23%  1.16% 
               
Calculation of Efficiency Ratio:              
Noninterest expense$  31,056  $  28,184  $  28,495  $  26,660  $  25,087  $  114,395  $  101,745  
Less: certain noninterest expense items*:              
  Amortization of intangibles   (677)    (677)    (687)    (693)    (830)    (2,734)    (3,498) 
  Due diligence, merger-related and merger integration  expenses   (3,507)    (850)    (1,236)    (511)    -     (6,104)    -  
Noninterest expense (adjusted) (numerator)$  26,872  $  26,657  $  26,572  $  25,456  $  24,257  $  105,557  $  98,247  
               
Noninterest income$  15,536  $  15,584  $  14,785  $  13,227  $  13,248  $  59,132  $  54,039  
Less: non-core noninterest income items:              
  Loss (gain) on sale of investment securities available for sale   (28)    (72)    -     (2)    (9)    (101)    77  
Noninterest income (core)$  15,508  $  15,512  $  14,785  $  13,225  $  13,239  $  59,031  $  54,116  
Net interest income   30,321     29,438     27,965     27,403     26,990     115,127     106,236  
Noninterest income (core) and net interest income (denominator)$  45,829  $  44,950  $  42,750  $  40,628  $  40,229  $  174,158  $  160,352  
               
Efficiency ratio 58.64%  59.30%  62.16%  62.66%  60.30%  60.61%  61.27% 
* 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$  17,525  $  17,004  $  16,399  $  17,107  $  17,486      
Less: Allowance on acquired loans   50     47     25     38     28      
Allowance on originated loans and leases$  17,475  $  16,957  $  16,374  $  17,069  $  17,458      
               
Total Allowance$  17,525  $  17,004  $  16,399  $  17,107  $  17,486      
Loan mark on acquired loans   31,627     10,223     11,084     11,544     12,286      
Total Allowance + Loan mark$  49,152  $  27,227  $  27,483  $  28,651  $  29,772      
               
Total Portfolio loans and leases$  3,285,857  $  2,677,345  $  2,666,651  $  2,555,589  $  2,535,425      
Less: Originated loans and leases   2,487,295     2,433,054     2,409,964     2,286,814     2,240,987      
Net acquired loans$  798,562  $  244,291  $  256,687  $  268,775  $  294,438      
Add: Loan mark on acquired loans   31,627     10,223     11,084     11,544     12,286      
Gross acquired loans (excludes loan mark)$  830,189  $  254,514  $  267,771  $  280,319  $  306,724      
Originated loans and leases   2,487,295     2,433,054     2,409,964     2,286,814     2,240,987      
Total Gross portfolio loans and leases$  3,317,484  $  2,687,568  $  2,677,735  $  2,567,133  $  2,547,711