BRYN MAWR, Pa., April 19, 2018 (GLOBE NEWSWIRE) -- Bryn Mawr Bank Corporation (NASDAQ:BMTC) (the “Corporation”), parent of The Bryn Mawr Trust Company (the “Bank”) today reported net income of $15.3 million, or $0.75 diluted earnings per share for the three months ended March 31, 2018, as compared to a net loss of $6.2 million, or $(0.35) diluted loss per share, for the three months ended December 31, 2017, and $9.0 million, or $0.53 diluted earnings per share, for the three months ended March 31, 2017.

On a non-GAAP basis, core net income, which excludes due diligence and merger-related expenses, income tax charges related to re-measurement of net deferred tax assets, and certain other non-core income and expense items, as detailed in the appendix to this earnings release, was $19.3 million, or $0.94 diluted earnings per share, for the three months ended March 31, 2018, as compared to $11.3 million, or $0.63 diluted earnings per share, for the three months ended December 31, 2017, and $9.4 million, or $0.55 diluted earnings per share, for the three months ended March 31, 2017. Management believes the core net income measure is important in evaluating the Corporation’s performance on a more comparable basis between periods. A reconciliation of this and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release.

“We are pleased with the solid results posted in the first quarter. Our merger with Royal Bank, which closed at the end of 2017, has already begun to have a significant impact on our bottom line,” stated Frank Leto, President and Chief Executive Officer. “We successfully completed the combination of our banking systems in late February, and with all branch locations now operating under the BMT banner, we are able to offer an expanded range of financial solutions to clients from both institutions,” continued Mr. Leto.

“The strong results we witnessed this quarter included increases in net interest income, wealth management fees, insurance revenues and other operating income, along with the reduced income tax burden as a result of the Tax Cuts and Jobs Act,” added Mr. Leto, continuing, “We are excited about the savings and additional capital that the Tax Reform legislation has and will continue to create.  We intend to put some of these benefits to work through investments in our businesses, team members, and the communities we serve.  We are actively evaluating investments to further our private banking strategy, enhance our systems to improve client experience and advance the development of our operating platform, all with the goal of increasing shareholder value by positioning ourselves for future growth and performance.”

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

SIGNIFICANT ITEMS OF NOTE
Results of Operations – First Quarter 2018 Compared to Fourth Quarter 2017

  • Net income for the three months ended March 31, 2018 was $15.3 million, as compared to a net loss of $6.2 million for the three months ended December 31, 2017. The primary cause of the net loss in the fourth quarter of 2017 was the $15.2 million income tax charge related to the re-measurement of net deferred tax assets as a result of the Tax Cuts and Jobs Act (“Tax Reform”). Aside from the decrease in income tax expense, net interest income for the three months ended March 31, 2018 increased by $7.1 million, as the loans and leases acquired in the Royal Bank merger contributed to the $8.4 million increase in interest on loans and leases. In addition to the increase in net interest income, fees for wealth management services, commissions and fees from our insurance division, net gain on sale of other real estate owned and other operating income increased by $334 thousand, $183 thousand, $268 thousand and $2.8 million, respectively, for the three months ended March 31, 2018, as compared to the three months ended December 31, 2017.

    On a non-GAAP basis, core net income, which excludes the above Tax Reform-related income tax charges, due diligence and merger-related expenses and other non-core income and expense items, as detailed in the appendix to this earnings release, was $19.3 million, or $0.94 per diluted share for the three months ended March 31, 2018, as compared to $11.3 million or $0.63 per diluted share for the fourth quarter of 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 first quarter of 2018 increased $7.1 million, or 23.5%, over the linked-quarter ended December 31, 2017. Average interest-earning assets increased $515.5 million, primarily as a result of the loans and leases acquired from Royal Bank. Average loans and leases increased $486.0 million between the fourth quarter of 2017 and the first quarter of 2018. The increase in interest-earning assets was accompanied by a $457.6 million increase in interest-bearing liabilities, which was also largely the result of interest-bearing deposits and junior subordinated debentures acquired from Royal Bank and the $70 million of subordinated notes issued in December 2017.
     
  • Tax-equivalent net interest income for the three months ended March 31, 2018 was $37.5 million, an increase of $7.0 million over the linked quarter, driven by the assets and liabilities acquired from Royal Bank as well as a $2.7 million increase in the accretion of purchase accounting fair value marks between the quarters.

    Tax-equivalent interest and fees on loans and leases for the three months ended March 31, 2018 increased $8.4 million over the linked quarter.  Average loans and leases for the three months ended March 31, 2018 increased $486.0 million over the previous quarter and experienced a 44 basis point increase in tax-equivalent yield.

    Average available for sale investment securities increased by $31.2 million over the linked quarter, and experienced a 12 basis point tax-equivalent yield increase. The increase in volume and yield on available for sale investment securities resulted in a $254 thousand increase in tax-equivalent interest income for the first quarter of 2018 as compared to the fourth quarter of 2017.  The majority of the investment portfolio acquired from Royal Bank was sold immediately following the close of the merger and did not impact interest income from available for sale investment securities.

    Interest expense on deposits for the three months ended March 31, 2018 increased $733 thousand over the linked quarter.  Average interest-bearing deposits increased $404.3 million accompanied by a five basis point increase in the rate paid on deposits.  The increase in average interest-bearing deposits was largely related to the deposits acquired from Royal Bank.

    Average subordinated notes for the three months ended March 31, 2018 increased $54.6 million over the linked quarter with the rate paid increasing by two basis points to 4.71%.  The increase was primarily related to the $70 million of 4.25% fixed-to-floating subordinated notes issued on December 13, 2017.  Average junior subordinated debentures for the three months ended March 31, 2018 increased $21.4 million over the linked quarter as the Corporation acquired $21.4 million of floating rate junior subordinated debentures currently at an effective rate of 5.45% from the Royal Bank merger. The volume increase in both borrowing types resulted in an increase in interest expense on subordinated notes and junior subordinated debentures of $625 thousand and $242 thousand, respectively, on a linked-quarter basis.
  • The tax-equivalent net interest margin was 3.94% for the first quarter of 2018 as compared to 3.62% for the fourth quarter of 2017.  Adjusting for the impact of the accretion of purchase accounting fair value marks, the adjusted tax-equivalent net interest margin was 3.62% and 3.58% for the first quarter of 2018 and fourth quarter of 2017, respectively, an increase of four basis points. 
     
  • Noninterest income for the three months ended March 31, 2018 of $19.5 million increased $4.0 million from the fourth quarter of 2017. Items contributing to the increase included a $2.8 million increase in other operating income comprised primarily of a $2.3 million recovery of the purchase accounting fair value mark that had been recorded on a purchased credit impaired loan acquired from Royal Bank, which paid off, in full, during the first quarter of 2018. A $334 thousand increase in fees for wealth management services, a $183 thousand increase in insurance revenue and a $268 thousand increase in net gain on sale of other real estate owned were also recorded during the quarter.
     
  • Noninterest expense for the three months ended March 31, 2018 increased $5.0 million, to $36.0 million, as compared to $31.0 million for the fourth quarter of 2017. The increase on a linked-quarter basis was related to increases of $2.4 million in salaries and wages, $991 thousand in employee benefits and $402 thousand in occupancy and bank premises, all of which were directly related to the staff and facilities additions from the Royal Bank merger. In addition, due diligence, merger-related and merger integration expenses increased $812 thousand on a linked-quarter basis. While much of the merger-related expenses associated with the Royal Bank merger were recorded at the time of the merger, certain expenses incurred in connection with the banking system conversion, contract terminations and lease terminations are recorded as they are incurred.
     
  • For the three months ended March 31, 2018, net loan and lease charge-offs totaled $893 thousand, as compared to $556 thousand for the fourth quarter of 2017. The provision for loan and lease losses (the “Provision”) for the three months ended March 31, 2018 was $1.0 million, a $47 thousand decrease from $1.1 million for the fourth 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 organic growth of the portfolio. Nonperforming loans as of March 31, 2018 totaled $7.5 million, a decrease of $1.0 million from December 31, 2017.
     
  • Income tax expense for the first quarter of 2018 decreased $15.3 million as compared to the fourth quarter of 2017. Included in tax expense for both the fourth quarter of 2017 and the first quarter of 2018 were discrete tax charges of $15.2 million and $590 thousand, respectively, related to the re-measurement of net deferred tax assets as a result of Tax Reform. Excluding these discrete income tax charges related to Tax Reform, the effective tax rate for the first quarter of 2018 was 20.3% as compared to 34.5% for the fourth quarter of 2017.

Results of Operations – First Quarter 2018 Compared to First Quarter 2017

  • Net income for the three months ended March 31, 2018 was $15.3 million, or $0.75 diluted earnings per share, as compared to $9.0 million, or diluted earnings per share of $0.53 for the same period in 2017. Contributing to the $6.2 million increase in net income was a $10.0 million increase in net interest income and increases of $1.0 million, $930 thousand, $666 thousand and $3.2 million in fees for wealth management services, insurance commissions, capital markets revenue and other operating income, respectively. These increases were partially offset by increases of $3.5 million, $1.2 million and $524 thousand in salaries and wages, employee benefits and occupancy and bank premises expenses, respectively. These cost increases were primarily related to the addition of the Royal Bank staff and branch infrastructure and, to a lesser extent, the addition of Hirshorn Boothby in May 2017 and the establishment of our Capital Markets group in the second quarter of 2017. Also contributing to the net income increase was the reduction in our effective income tax rate as a result of Tax Reform, which decreased from 33.9% for the three months ended March 31, 2017 to 23.3% for the same period in 2018. Included in the rate for the first quarter of 2018 was the effect of a discrete tax charge related to the re-measurement of net deferred tax assets, associated with Tax Reform. Excluding this discrete item, the effective rate for the first quarter of 2018 was 20.3%.

    On a non-GAAP basis, core net income, which excludes the above Tax Reform-related income tax charges, due diligence and merger-related expenses and other non-core income and expense items, as detailed in the appendix to this earnings release, was $19.3 million, or $0.94 per diluted share for the three months ended March 31, 2018 as compared to $9.4 million, or $0.55 per diluted share for the same period in 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.
  • Tax-equivalent net interest income for the three months ended March 31, 2018 was $37.5 million, an increase of $9.9 million over the same period in 2017.  Contributing to the increase was a $2.3 million increase in the accretion of purchase accounting fair value marks between the first quarters of 2018 and 2017. 

    Tax-equivalent interest and fees on loans and leases increased $12.1 million for the three months ended March 31, 2018 as compared to the same period in 2017.  Average loans and leases for the first quarter of 2018 increased $735.5 million from the same period in 2017 and experienced a 48 basis point increase in tax-equivalent yield.  Excluding the effect of the accretion of purchase accounting fair value marks on loans and leases, the adjusted tax-equivalent yield on loans and leases increased by 27 basis points between the first quarters of 2017 and 2018. The increases in short-term rates during 2017 and 2018 contributed to the increase in tax-equivalent yield on loans. The increase in average loans and leases for the first quarter of 2018 as compared to the same period in 2017 was related to the loans and leases acquired in the Royal Bank merger which initially increased loans and leases by $567.3 million, as well as organic loan growth during the period.

    Average available for sale investment securities increased by $133.5 million for the three months ended March 31, 2018 as compared to the same period in 2017, and experienced a 26 basis point tax-equivalent yield increase. The increase in volume and yield on available for sale investment securities resulted in a $958 thousand increase in tax-equivalent interest income on available for sale investment securities for the first quarter of 2018 as compared to the same period in 2017.

    Partially offsetting the effect on interest income associated with the increase in average loans and leases and available for sale investment securities was a $1.6 million increase in interest expense on deposits for the first quarter of 2018 as compared to the same period in 2017. Average interest-bearing deposits increased by $583.3 million, and was accompanied by an 18 basis point increase in rate paid between the first quarters of 2018 and 2017. The increase in average interest-bearing deposits between the first quarters of 2018 and 2017 was largely related to the interest-bearing deposits assumed in the Royal Bank merger, which initially totaled $494.8 million.

    In addition to the increased interest expense on deposits, a $467 thousand increase in interest expense on long- and short-term borrowings between the periods was attributed to a $66.3 million increase in average long- and short-term borrowings coupled with a 153 basis point increase in rate paid on long- and short-term borrowings for the three months ended March 31, 2018 as compared to the same period in 2017.

    Average subordinated notes for the three months ended March 31, 2018 increased $68.9 million as compared to the same period in 2017 with the rate paid decreasing by 37 basis points to 4.71% for the three months ended March 31, 2018.  The volume increase in subordinated notes was the result of the December 13, 2017 issuance of $70 million ten-year, 4.25% fixed-to-floating subordinated notes. Average junior subordinated debentures for the three months ended March 31, 2018 increased $21.4 million compared to the same period in 2017 as the Corporation acquired $21.4 million of floating rate junior subordinated debentures, currently at a 5.45% rate, from the Royal Bank merger.  The volume increase in both sub debt types and rate decrease in the subordinated notes in the first quarter of 2018 resulted in an increase in interest expense on subordinated notes and junior subordinated debentures of $773 thousand and a $288 thousand, respectively, for the three months ended March 31, 2018 as compared to the same period in 2017.
  • The tax-equivalent net interest margin was 3.94% for the three months ended March 31, 2018 as compared to 3.74% for the same period in 2017.  Adjusting for the impact of the accretion of purchase accounting fair value marks, the adjusted tax-equivalent net interest margin was 3.62% and 3.63% for three months ended March 31, 2018 and 2017, respectively.
     
  • Noninterest income for the three months ended March 31, 2018 increased by $6.3 million, to $19.5 million, from the same period in 2017. Increases of $1.0 million, $930 thousand, $666 thousand, and $3.2 million in fees for wealth management services, insurance commissions, capital markets revenues and other operating income, respectively, were recorded. The increase in fees for wealth management services was related to the $1.42 billion increase in wealth assets under management, administration, supervision and brokerage between March 31, 2017 and March 31, 2018. The increase in insurance commissions was primarily related to the May 2017 acquisition of Hirshorn Boothby which expanded our insurance division into the City of Philadelphia. Our Capital Markets group, which began operations in the second quarter of 2017, contributed significantly to our noninterest income totals. The $3.2 million increase in other operating income was primarily related to a $2.3 million recovery of a purchase accounting fair value mark resulting from the pay off, in full, of a purchased credit impaired loan acquired in the Royal Bank merger.
     
  • Noninterest expense for the three months ended March 31, 2018 increased $9.4 million, to $36.0 million, from the same period in 2017. A majority of the increase was related to the additional expenses associated with the staff and facilities assumed in the Royal Bank merger. In addition, the May 2017 acquisition of Hirshorn Boothby and the formation of our Capital Markets group in the second quarter of 2017 contributed to the increase in noninterest expense. Due diligence, merger-related and merger integration expenses also experienced an increase of $3.8 million between the quarters, primarily related to the Royal Bank merger. 
     
  • For the three months ended March 31, 2018, the Provision was $1.0 million, which was an increase of $739 thousand from the same period in 2017. Net charge-offs for the first quarter of 2018 were $893 thousand as compared to $670 thousand for the same period in 2017.

Financial Condition – March 31, 2018 Compared to December 31, 2017

  • Total portfolio loans and leases of $3.31 billion as of March 31, 2018 increased by $19.9 million from December 31, 2017, an annualized increase rate of 2.4%. Increases of $18.1 million, $10.3 million, $7.9 million and $6.0 million in commercial mortgages, consumer loans, commercial and industrial loans and leases, respectively, were offset by decreases of $10.3 million, $6.8 million and $5.2 million in construction loans, home equity loans and lines and residential mortgages, respectively, between the dates.
     
  • The Allowance as of March 31, 2018 was $17.6 million, or 0.53% of portfolio loans and leases, as compared to $17.5 million, or 0.53% of portfolio loans and leases as of December 31, 2017. 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 0.69% as of March 31, 2018, as compared to 0.70% as of December 31, 2017, and the Allowance plus the remaining loan mark as a percentage of gross loans, which was 1.50% as of March 31, 2018, as compared to 1.58% as of December 31, 2017. A reconciliation of these and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release.
     
  • Available for sale investment securities as of March 31, 2018 totaled $534.1 million, a decrease of $155.1 million from December 31, 2017. The decrease in available for sale investment securities was primarily related to the maturing, in January 2018, of $200.0 million of short-term U.S. Treasury securities.
     
  • Total assets as of March 31, 2018 were $4.30 billion, a decrease of $149.3 million from December 31, 2017. The decrease in available for sale investment securities described in the previous bullet point accounted for the majority of the decrease.
     
  • Wealth assets under management, administration, supervision and brokerage totaled $13.15 billion as of March 31, 2018, an increase of $178.2 million from December 31, 2017. The increase in wealth assets was comprised of a $191.5 million decrease in account balances whose fees are based on market value, and a $369.7 million increase in fixed rate flat-fee account types.
     
  • Deposits of $3.32 billion as of March 31, 2018 decreased $58.3 million from December 31, 2017. Decreases of $61.7 million and $29.6 million in noninterest-bearing and savings accounts, respectively, were partially offset by a $48.1 million increase in interest-bearing demand accounts.
     
  • Borrowings of $401.4 million as of March 31, 2018, which include short-term borrowings, long-term FHLB advances, subordinated notes and junior subordinated debentures, decreased $95.4 million from December 31, 2017. The decrease was comprised of a $64.1 million decrease in short-term borrowings, and a $31.4 million decrease in long-term FHLB advances.

  • The capital ratios for the Bank and the Corporation, as of March 31, 2018, as shown in the attached tables, indicate levels above the regulatory minimum to be considered “well capitalized.” Excluding the Bank’s and Corporation’s Tier I leverage ratio, all regulatory capital ratios increased from their December 31, 2017 levels primarily as a result of the increase in retained earnings. The Tier I leverage ratio, which is the ratio of Tier I capital to average quarterly assets, for both the Bank and Corporation decreased from December 31, 2017, as the assets acquired in the Royal Bank merger were present for a full quarter.

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

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

For a complete discussion of the assumptions, risks and uncertainties related to our business, you are encouraged to review our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K, as updated by our quarterly or other reports subsequently filed with the SEC.

           
Bryn Mawr Bank Corporation          
Summary Financial Information (unaudited)          
(dollars in thousands, except per share data)          
 As of or For the Three Months Ended 
 March 31, 2018 December 31, 2017 September 30, 2017 June 30, 2017 March 31, 2017 
Consolidated Balance Sheet (selected items)          
Interest-bearing deposits with banks$  24,589  $  48,367  $  36,870  $  30,806  $  69,978  
Investment securities   550,199     701,744     482,399     452,869     400,360  
Loans held for sale   5,522     3,794     6,327     8,590     3,015  
Portfolio loans and leases   3,305,795     3,285,858     2,677,345     2,666,651     2,555,589  
Allowance for loan and lease losses ("ALLL")   (17,662)    (17,525)    (17,004)    (16,399)    (17,107) 
Goodwill and other intangible assets   207,287     205,855     128,534     129,211     124,629  
Total assets   4,300,376     4,449,720     3,476,821     3,438,219     3,292,617  
Deposits - interest-bearing   2,452,421     2,448,954     1,923,567     1,863,288     1,865,009  
Deposits - non-interest-bearing   863,118     924,844     760,614     818,475     771,556  
Short-term borrowings   173,704     237,865     180,874     130,295     23,613  
Long-term FHLB advances and other borrowings   107,784     139,140     134,651     164,681     174,711  
Subordinated notes   98,448     98,416     29,573     29,559     29,546  
Jr. subordinated debentures   21,456     21,416     -     -     -  
Total liabilities   3,767,315     3,921,601     3,074,929     3,043,242     2,904,522  
Total shareholders' equity   533,061     528,119     401,892     394,977     388,095  
           
Average Balance Sheet (selected items)          
Interest-bearing deposits with banks$  38,044  $  43,962  $  26,628  $  26,266  $  39,669  
Investment securities   535,471     499,968     462,700     429,400     393,306  
Loans held for sale   2,848     3,966     3,728     3,855     4,238  
Portfolio loans and leases   3,288,364     2,801,289     2,676,589     2,611,755     2,551,439  
Total interest-earning assets   3,864,727     3,349,185     3,169,645     3,071,276     2,988,652  
Goodwill and intangible assets   205,529     142,652     128,917     126,537     124,884  
Total assets   4,246,180     3,640,667     3,441,906     3,333,307     3,244,060  
Deposits - interest-bearing   2,435,491     2,031,170     1,871,494     1,853,660     1,852,194  
Short-term borrowings   172,534     180,650     182,845     98,869     47,603  
Long-term FHLB advances   123,920     134,605     155,918     171,567     182,507  
Subordinated notes   98,430     43,844     29,564     29,550     29,537  
Jr. subordinated debentures   21,430     3,957        
Total interest-bearing liabilities   2,851,805     2,394,226     2,239,821     2,153,646     2,111,841  
Total liabilities   3,719,746     3,213,349     3,044,549     2,943,591     2,861,846  
Total shareholders' equity   526,434     427,318     397,357     389,716     382,214  
           
Income Statement          
Net interest income$  37,439  $  30,321  $  29,438  $  27,965  $  27,403  
Provision for loan and lease losses   1,030     1,077     1,333     (83)    291  
Noninterest income   19,536     15,536     15,584     14,785     13,227  
Noninterest expense   36,030     31,056     28,184     28,495     26,660  
Income tax expense   4,630     19,924     4,766     4,905     4,635  
Net income   15,285     (6,200)    10,739     9,433     9,044  
Add: Net loss attributable to noncontrolling interest   1     -     -     -     -  
Net income attributable to Bryn Mawr Bank Corporation   15,286     (6,200)    10,739     9,433     9,044  
Basic earnings per share   0.76     (0.35)    0.63     0.56     0.53  
Diluted earnings per share   0.75     (0.35)    0.62     0.55     0.53  
Net income (core) (1)   19,282     11,255     11,245     10,236     9,375  
Basic earnings per share (core) (1)   0.95     0.64     0.66     0.60     0.55  
Diluted earnings per share (core) (1)   0.94     0.63     0.65     0.59     0.55  
Cash dividends paid per share   0.22     0.22     0.22     0.21     0.21  
Profitability Indicators          
Return on average assets 1.46%  -0.68%  1.24%  1.14%  1.13% 
Return on average equity 11.78%  -5.75%  10.72%  9.71%  9.60% 
Return on tangible equity(1) 20.20%  -8.03%  16.52%  15.06%  14.96% 
Return on tangible equity (core)(1) 25.25%  16.30%  17.27%  16.28%  15.48% 
Return on average assets (core)(1) 1.84%  1.23%  1.30%  1.23%  1.17% 
Return on average equity (core)(1) 14.85%  10.45%  11.23%  10.53%  9.95% 
Tax-equivalent net interest margin 3.94%  3.62%  3.71%  3.68%  3.74% 
Efficiency ratio(1) 54.12%  58.64%  59.30%  62.16%  62.66% 
Share Data          
Closing share price$  43.95  $  44.20  $  43.80  $  42.50  $  39.50  
Book value per common share$  26.35  $  26.19  $  23.57  $  23.25  $  22.87  
Tangible book value per common share$  16.10  $  15.98  $  16.03  $  15.64  $  15.53  
Price / book value 166.79%  168.74%  185.82%  182.81%  172.71% 
Price / tangible book value 272.92%  276.52%  273.19%  271.69%  254.41% 
Weighted average diluted shares outstanding   20,425,256     17,613,634     17,253,982     17,232,767     17,182,689  
Shares outstanding, end of period   20,229,896     20,161,395     17,050,151     16,989,849     16,969,451  
Wealth Management Information:          
Wealth assets under mgmt, administration, supervision and brokerage (2)$  13,146,926  $  12,968,738  $  12,431,370  $  12,050,555  $  11,725,460  
Fees for wealth management services$  10,308  $  9,974  $  9,651  $  9,807  $  9,303  
Capital Ratios          
Bryn Mawr Trust Company          
Tier I capital to risk weighted assets ("RWA") (3) 11.33%  11.10%  10.78%  10.29%  10.58% 
Total  capital to RWA (3) 11.85%  11.65%  11.42%  10.90%  11.25% 
Tier I leverage ratio (3) 9.39%  10.76%  8.79%  8.76%  8.83% 
Tangible equity ratio (1)(3) 9.19%  8.67%  8.46%  8.24%  8.46% 
Common equity Tier I capital to RWA (3) 11.33%  11.10%  10.78%  10.29%  10.58% 
           
Bryn Mawr Bank Corporation          
Tier I capital to RWA (3) 10.66%  10.42%  10.50%  10.10%  10.50% 
Total capital to RWA (3) 14.17%  13.92%  12.23%  11.79%  12.30% 
Tier I leverage ratio (3) 8.71%  10.10%  8.53%  8.63%  8.77% 
Tangible equity ratio (1)(3) 7.98%  7.61%  8.16%  8.03%  8.32% 
Common equity Tier I capital to RWA (3) 10.03%  9.87%  10.50%  10.10%  10.50% 
           
Asset Quality Indicators          
           
Net loan and lease charge-offs ("NCO"s)$  893  $  556  $  728  $  625  $  670  
Nonperforming loans and leases ("NPL"s)$  7,533  $  8,579  $  4,472  $  7,237  $  7,329  
Other real estate owned ("OREO")   300     304     865     1,122     978  
Total nonperforming assets ("NPA"s)$   7,833   $   8,883   $   5,337   $   8,359   $   8,307   
           
Nonperforming loans and leases 30 or more days past due$  5,775  $  6,983  $  2,337  $  4,076  $  5,097  
Performing loans and leases 30 to 89 days past due   6,547     7,958     4,558     6,258     6,077  
Performing loans and leases 90 or more days past due   -     -     -     -     -  
Total delinquent loans and leases$   12,322   $   14,941   $   6,895   $   10,334   $   11,174   
           
Delinquent loans and leases to total loans and leases 0.37%  0.45%  0.26%  0.39%  0.44% 
Delinquent performing loans and leases to total loans and leases 0.20%  0.24%  0.17%  0.23%  0.24% 
NCOs / average loans and leases (annualized) 0.11%  0.08%  0.11%  0.10%  0.11% 
NPLs / total portfolio loans and leases 0.23%  0.26%  0.17%  0.27%  0.29% 
NPAs / total loans and leases and OREO 0.24%  0.27%  0.20%  0.31%  0.32% 
NPAs / total assets 0.18%  0.20%  0.15%  0.24%  0.25% 
ALLL / NPLs 234.46%  204.28%  380.23%  226.60%  233.42% 
ALLL / portfolio loans 0.53%  0.53%  0.64%  0.61%  0.67% 
ALLL on originated loans and leases / Originated loans and leases (1) 0.69%  0.70%  0.70%  0.68%  0.75% 
(Total Allowance + Loan mark) / Total Gross portfolio loans and leases (1) 1.50%  1.58%  1.01%  1.03%  1.12% 
           
Troubled debt restructurings ("TDR"s) included in NPLs$  1,125  $  3,289  $  2,033  $  2,470  $  2,681  
TDRs in compliance with modified terms   5,235     5,800     6,597     6,148     6,492  
Total TDRs$   6,360   $   9,089   $   8,630   $   8,618   $   9,173   
           
(1)Non-GAAP measure - see Appendix for Non-GAAP to GAAP reconciliation.          
(2)Brokerage assets represent assets held at a registered broker dealer under a clearing agreement.         
(3)Capital Ratios for the current quarter are to be considered preliminary until the Call Reports are filed.         
           

 

           
Bryn Mawr Bank Corporation          
Detailed Balance Sheets (unaudited)          
(dollars in thousands)          
           
 March 31, 2018 December 31, 2017 September 30, 2017 June 30, 2017 March 31, 2017 
Assets          
Cash and due from banks$  7,804  $  11,657  $  8,682  $  19,352  $  17,457  
Interest-bearing deposits with banks   24,589     48,367     36,870     30,806     69,978  
  Cash and cash equivalents   32,393     60,024     45,552     50,158     87,435  
Investment securities, available for sale   534,103     689,202     471,721     443,687     391,028  
Investment securities, held to maturity   7,885     7,932     6,255     5,161     5,194  
Investment securities, trading   8,211     4,610     4,423     4,021     4,138  
Loans held for sale   5,522     3,794     6,327     8,590     3,015  
Portfolio loans and leases, originated   2,564,825     2,487,296     2,433,054     2,409,964     2,286,814  
Portfolio loans and leases, acquired   740,970     798,562     244,291     256,687     268,775  
  Total portfolio loans and leases   3,305,795     3,285,858     2,677,345     2,666,651     2,555,589  
Less: Allowance for losses on originated loan and leases   (17,570)    (17,475)    (16,957)    (16,374)    (17,069) 
Less: Allowance for losses on acquired loan and leases   (92)    (50)    (47)    (25)    (38) 
  Total allowance for loan and lease losses   (17,662)    (17,525)    (17,004)    (16,399)    (17,107) 
  Net portfolio loans and leases   3,288,133     3,268,333     2,660,341     2,650,252     2,538,482  
Premises and equipment   54,986     54,458     44,544     44,446     40,515  
Accrued interest receivable   12,521     14,246     9,287     8,717     8,392  
Mortgage servicing rights   5,706     5,861     5,732     5,683     5,686  
Bank owned life insurance   56,946     56,667     39,881     39,680     39,479  
Federal Home Loan Bank ("FHLB") stock   15,499     20,083     16,248     15,168     8,505  
Goodwill   182,200     179,889     107,127     107,127     104,765  
Intangible assets   25,087     25,966     21,407     22,084     19,864  
Other investments   11,720     12,470     8,941     8,682     8,716  
Other assets   59,464     46,185     29,035     24,763     27,403  
  Total assets$  4,300,376  $  4,449,720  $  3,476,821  $  3,438,219  $  3,292,617  
           
Liabilities          
Deposits          
  Noninterest-bearing$  863,118  $  924,844  $  760,614  $  818,475  $  771,556  
  Interest-bearing   2,452,421     2,448,954     1,923,567     1,863,288     1,865,009  
  Total deposits   3,315,539     3,373,798     2,684,181     2,681,763     2,636,565  
Short-term borrowings   173,704     237,865     180,874     130,295     23,613  
Long-term FHLB advances   107,784     139,140     134,651     164,681     174,711  
Subordinated notes   98,448     98,416     29,573     29,559     29,546  
Jr. subordinated debentures   21,456     21,416     -     -     -  
Accrued interest payable   4,814     3,527     2,267     2,830     2,722  
Other liabilities   45,570     47,439     43,383     34,114     37,365  
  Total liabilities   3,767,315     3,921,601     3,074,929     3,043,242     2,904,522  
           
Shareholders' equity          
Common stock   24,439     24,360     21,248     21,162     21,141  
Paid-in capital in excess of par value   371,319     371,486     235,412     234,654     233,910  
Less: common stock held in treasury, at cost   (68,787)    (68,179)    (68,134)    (67,091)    (66,969) 
Accumulated other comprehensive (loss) income, net of tax   (9,664)    (4,414)    (1,400)    (1,564)    (1,990) 
Retained earnings   216,438     205,549     214,766     207,816     202,003  
  Total Bryn Mawr Bank Corporation shareholders' equity   533,745     528,802     401,892     394,977     388,095  
Noncontrolling interest   (684)    (683)    -     -     -  
  Total shareholders' equity   533,061     528,119     401,892     394,977     388,095  
  Total liabilities and shareholders' equity$  4,300,376  $  4,449,720  $  3,476,821  $  3,438,219  $  3,292,617  
           

 

Bryn Mawr Bank Corporation          
Supplemental Balance Sheet Information (unaudited)          
(dollars in thousands)          
 Portfolio Loans and Leases as of 
 March 31, 2018 December 31, 2017 September 30, 2017 June 30, 2017 March 31, 2017 
Commercial mortgages$  1,541,457  $  1,523,376  $  1,224,571  $  1,197,936  $  1,137,870  
Home equity loans and lines   211,469     218,275     206,974     208,480     203,962  
Residential mortgages   453,655     458,886     422,524     416,488     418,264  
Construction   202,168     212,454     133,505     156,581     145,699  
  Total real estate loans   2,408,749     2,412,991     1,987,574     1,979,485     1,905,795  
Commercial & Industrial   727,231     719,312     597,595     599,203     567,917  
Consumer   48,423     38,153     31,306     28,485     23,932  
Leases   121,392     115,401     60,870     59,478     57,945  
  Total non-real estate loans and leases   897,046     872,866     689,771     687,166     649,794  
  Total portfolio loans and leases$  3,305,795  $  3,285,857  $  2,677,345  $  2,666,651  $  2,555,589  
           
           
 Nonperforming Loans and Leases as of 
 March 31, 2018 December 31, 2017 September 30, 2017 June 30, 2017 March 31, 2017 
Commercial mortgages$  138  $  872  $  193  $  818  $  315  
Home equity loans and lines   1,949     1,481     613     1,535     1,828  
Residential mortgages   2,603     4,417     1,589     2,589     2,640  
Construction   -     -     -     -     -  
  Total nonperforming real estate loans   4,690     6,770     2,395     4,942     4,783  
Commercial & Industrial   2,499     1,706     1,977     2,112     2,471  
Consumer   -     -     -     10     -  
Leases   344     103     100     173     75  
  Total nonperforming non-real estate loans and leases   2,843     1,809     2,077     2,295     2,546  
  Total nonperforming portfolio loans and leases$  7,533  $  8,579  $  4,472  $  7,237  $  7,329  
           
           
 Net Loan and Lease Charge-Offs (Recoveries) for the Three Months Ended 
 March 31, 2018 December 31, 2017 September 30, 2017 June 30, 2017 March 31, 2017 
Commercial mortgage$  (3) $  51  $  (3) $  (3) $  (3) 
Home equity loans and lines   25     (5)    69     169     438  
Residential   -     88     3     43     27  
Construction   (1)    (1)    (1)    (1)    (1) 
  Total net charge-offs of real estate loans   21     133     68     208     461  
Commercial & Industrial   283     125     298     185     59  
Consumer   48     55     36     16     39  
Leases   541     243     326     216     111  
  Total net charge-offs of non-real estate loans and leases   872     423     660     417     209  
  Total net charge-offs$  893  $  556  $  728  $  625  $  670  
           

 

Bryn Mawr Bank Corporation            
Supplemental Balance Sheet Information (unaudited)            
(dollars in thousands)            
 Investment Securities Available for Sale, at Fair Value   
 March 31, 2018 December 31, 2017 September 30, 2017 June 30, 2017 March 31, 2017   
U.S. Treasury securities $  100  $  200,088  $  100  $  100  $  100    
Obligations of the U.S. Government and agencies    175,107     151,044     142,711     126,468     100,476    
State & political subdivisions - tax-free   19,746     21,138     23,556     26,958     30,416    
State & political subdivisions - taxable   171     172     524     524     524    
Mortgage-backed securities   303,902     274,990     260,680     230,617     197,420    
Collateralized mortgage obligations   33,980     36,662     39,595     42,549     45,476    
Other debt securities   1,097     1,599     1,100     1,099     1,299    
Bond mutual funds   -     -     -     11,956     11,920    
Other investments   -     3,509     3,455     3,416     3,397    
  Total investment securities available for sale, at fair value$  534,103  $  689,202  $  471,721  $  443,687  $  391,028    
             
             
 Unrealized Gain (Loss) on Investment Securities Available for Sale   
 March 31, 2018 December 31, 2017 September 30, 2017 June 30, 2017 March 31, 2017   
U.S. Treasury securities $  -  $  11  $  -  $  -  $  -    
Obligations of the U.S. Government and agencies    (3,756)    (1,984)    (920)    (699)    (803)   
State & political subdivisions - tax-free   (74)    (42)    23     11     (10)   
State & political subdivisions - taxable   (1)    -     1     1     1    
Mortgage-backed securities   (5,169)    (968)    869     480     196    
Collateralized mortgage obligations   (1,322)    (934)    (640)    (662)    (777)   
Other debt securities   (3)    (1)    -     (1)    (1)   
Bond mutual funds   -     -     -     -     (36)   
Other investments   -     296     230     203     132    
  Total unrealized (losses) gains on investment securities available for sale$  (10,325) $  (3,622) $  (437) $  (667) $  (1,298)   
             
             
 Deposits   
 March 31, 2018 December 31, 2017 September 30, 2017 June 30, 2017 March 31, 2017   
Interest-bearing deposits:            
  Interest-bearing demand$  529,478  $  481,336  $  395,383  $  381,345  $  395,131    
  Money market   856,072     862,639     720,613     729,859     757,071    
  Savings   308,925     338,572     264,273     254,903     255,791    
  Retail time deposits    523,138     532,202     316,068     321,982     319,381    
  Wholesale non-maturity deposits   63,449     62,276     48,620     54,675     69,471    
  Wholesale time deposits   171,359     171,929     178,610     120,524     68,164    
  Total interest-bearing deposits   2,452,421     2,448,954     1,923,567     1,863,288     1,865,009    
  Noninterest-bearing deposits   863,118     924,844     760,614     818,475     771,556    
  Total deposits$  3,315,539  $  3,373,798  $  2,684,181  $  2,681,763  $  2,636,565    
             

 

           
Bryn Mawr Bank Corporation          
Detailed Income Statements (unaudited)          
(dollars in thousands, except per share data)          
 For the Three Months Ended 
 March 31, 2018 December 31, 2017 September 30, 2017 June 30, 2017 March 31, 2017 
Interest income:          
Interest and fees on loans and leases$  40,689  $  32,245  $  30,892  $  29,143  $  28,482  
Interest on cash and cash equivalents   53     37     36     35     66  
Interest on investment securities   2,792     2,516     2,270     2,059     1,778  
  Total interest income   43,534     34,798     33,198     31,237     30,326  
Interest expense:          
Interest on deposits   3,472     2,739     2,198     1,983     1,828  
Interest on short-term borrowings   630     579     547     237     27  
Interest on FHLB advances and other borrowings   562     595     645     682     698  
Interest on jr. subordinated debentures   288     46     -     -     -  
Interest on subordinated notes   1,143     518     370     370     370  
Total interest expense   6,095     4,477     3,760     3,272     2,923  
  Net interest income   37,439     30,321     29,438     27,965     27,403  
Provision for loan and lease losses (the "Provision")   1,030     1,077     1,333     (83)    291  
  Net interest income after Provision   36,409     29,244     28,105     28,048     27,112  
Noninterest income:          
Fees for wealth management services    10,308     9,974     9,651     9,807     9,303  
Insurance revenue   1,693     1,510     1,373     943     763  
Capital markets revenue   666     600     843     953     -  
Service charges on deposits   713     655     676     630     647  
Loan servicing and other fees   686     536     548     519     503  
Net gain on sale of loans   518     493     799     520     629  
Net gain on sale of investment securities available for sale   7     28     72     -     1  
Net gain (loss) on sale of other real estate owned   176     (92)    -     (12)    -  
Dividends on FHLB and FRB stocks   431     290     217     218     214  
Other operating income   4,338     1,542     1,405     1,207     1,167  
  Total noninterest income   19,536     15,536     15,584     14,785     13,227  
Noninterest expense:          
Salaries and wages    15,982     13,619     13,602     13,580     12,450  
Employee benefits    3,708     2,717     2,560     2,404     2,489  
Occupancy and bank premises   3,050     2,648     2,485     2,247     2,526  
Furniture, fixtures and equipment   1,898     1,816     1,726     1,869     1,974  
Advertising   461     386     277     405     386  
Amortization of intangible assets   879     677     677     687     693  
(Recovery) impairment of mortgage servicing rights ("MSRs")   (50)    (94)    3     43     3  
Due diligence, merger-related and merger integration expenses   4,319     3,507     850     1,236     511  
Professional fees   748     769     739     1,049     711  
Pennsylvania bank shares tax   473     16     317     297     664  
Information technology   1,195     1,006     880     821     874  
Other operating expenses    3,367     3,989     4,068     3,857     3,379  
  Total noninterest expense   36,030     31,056     28,184     28,495     26,660  
Income before income taxes   19,915     13,724     15,505     14,338     13,679  
Income tax expense   4,630     19,924     4,766     4,905     4,635  
  Net income$  15,285  $  (6,200) $  10,739  $  9,433  $  9,044  
Add: Net loss attributable to noncontrolling interest   1     -     -     -     -  
  Net income attributable to Bryn Mawr Bank Corporation$  15,286  $  (6,200) $  10,739  $  9,433  $  9,044  
           
Per share data:          
Weighted average shares outstanding   20,202,969     17,632,697     17,023,046     16,984,563     16,954,132  
Dilutive common shares   222,287     -     230,936     248,204     228,557  
Weighted average diluted shares    20,425,256     17,613,634     17,253,982     17,232,767     17,182,689  
Basic earnings (loss) per common share$  0.76  $  (0.35) $  0.63  $  0.56  $  0.53  
Diluted earnings (loss) per common share$  0.75  $  (0.35) $  0.62  $  0.55  $  0.53  
Dividend declared per share$  0.22  $  0.22  $  0.22  $  0.21  $  0.21  
Effective tax rate 23.25%  145.18%  30.74%  34.21%  33.88% 
           
           

 

Bryn Mawr Bank Corporation   
Tax-Equivalent Net Interest Margin (unaudited)               
(dollars in thousands, except per share data)
 
  
  For The Three Months Ended 
  March 31, 2018December 31, 2017September 30, 2017June 30, 2017March 31, 2017 
(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 
                  
Assets:                 
Interest-bearing deposits with other banks $  38,044 $  53 0.56%$  43,962 $  37 0.33%$  26,628 $  36 0.54%$  26,266 $  35 0.53%$  39,669 $  66 0.67% 
Investment securities - available for sale:                 
  Taxable    498,718    2,675 2.18%   465,393    2,394 2.04%   427,106    2,160 2.01%   391,112    1,940 1.99%   354,229    1,653 1.89% 
  Tax-exempt    20,501    100 1.98%   22,640    127 2.23%   25,268    134 2.10%   28,970    150 2.08%   31,485    164 2.11% 
  Total investment securities - available for sale     519,219    2,775 2.17%   488,033    2,521 2.05%   452,374    2,294 2.01%   420,082    2,090 2.00%   385,714    1,817 1.91% 
                  
Investment securities  - held to maturity    7,913    12 0.62%   7,510    11 0.58%   6,044    11 0.72%   5,181    5 0.39%   3,702    7 0.77% 
Investment securities  - trading    8,339    21 1.02%   4,425    25 2.24%   4,282    8 0.74%   4,137    13 1.26%   3,890    8 0.83% 
                  
Loans and leases *    3,291,212    40,754 5.02%   2,805,255    32,403 4.58%   2,680,317    31,058 4.60%   2,615,610    29,309 4.49%   2,555,677    28,622 4.54% 
                  
  Total interest-earning assets     3,864,727    43,615 4.58%   3,349,185    34,997 4.15%   3,169,645    33,407 4.18%   3,071,276    31,452 4.11%   2,988,652    30,520 4.14% 
                  
Cash and due from banks    10,698      6,855      15,709      15,727      14,942    
Less: allowance for loan and lease losses    (17,628)     (17,046)     (16,564)     (17,549)     (17,580)   
Other assets     388,383      301,673      273,116      263,853      258,046    
                  
  Total assets $  4,246,180   $  3,640,667   $  3,441,906   $  3,333,307   $  3,244,060    
                  
Liabilities:                 
                  
Interest-bearing deposits:                 
  Savings, NOW and market rate deposits $  1,676,733 $  1,479 0.36%$  1,410,461 $  897 0.25%$  1,359,293 $  823 0.24%$  1,375,949 $  813 0.24%$  1,388,561 $  756 0.22% 
  Wholesale deposits    231,289    733 1.29%   262,643    822 1.24%   190,849    548 1.14%   154,424    378 0.98%   143,461    317 0.90% 
  Retail time deposits     527,469    1,260 0.97%   358,066    1,020 1.13%   321,352    827 1.02%   323,287    792 0.98%   320,172    755 0.96% 
  Total interest-bearing deposits    2,435,491    3,472 0.58%   2,031,170    2,739 0.53%   1,871,494    2,198 0.47%   1,853,660    1,983 0.43%   1,852,194    1,828 0.40% 
                  
Borrowings:                 
Short-term borrowings    172,534    630 1.48%   180,650    579 1.27%   182,845    547 1.19%   98,869    237 0.96%   47,603    27 0.23% 
Long-term FHLB advances    123,920    562 1.84%   134,605    595 1.75%   155,918    645 1.64%   171,567    682 1.59%   182,507    698 1.55% 
Jr. subordinated debt    21,430    288 5.45%   3,957    46 4.61%   -    -     -    -     -    -   
Subordinated notes    98,430    1,143 4.71%   43,844    518 4.69%   29,564    370 4.97%   29,550    370 5.02%   29,537    370 5.08% 
  Total borrowings    416,314    2,623 2.56%   363,056    1,738 1.90%   368,327    1,562 1.68%   299,986    1,289 1.72%   259,647    1,095 1.71% 
                  
  Total interest-bearing liabilities    2,851,805    6,095 0.87%   2,394,226    4,477 0.74%   2,239,821    3,760 0.67%   2,153,646    3,272 0.61%   2,111,841    2,923 0.56% 
                  
Noninterest-bearing deposits    835,476      771,519      764,562      755,597      711,794    
Other liabilities    32,465      47,604      40,166      34,348      38,211    
  Total noninterest-bearing liabilities    867,941      819,123      804,728      789,945      750,005    
                  
  Total liabilities    3,719,746      3,213,349      3,044,549      2,943,591      2,861,846    
                  
Shareholders' equity     526,434      427,318      397,357      389,716      382,214    
                  
  Total liabilities and shareholders' equity  $  4,246,180   $  3,640,667   $  3,441,906   $  3,333,307   $  3,244,060    
                  
Net interest spread   3.71%  3.41%  3.51%  3.50%  3.58% 
Effect of noninterest-bearing sources   0.23%  0.21%  0.20%  0.18%  0.16% 
                  
Tax-equivalent net interest margin   $  37,520 3.94% $  30,520 3.62% $  29,647 3.71% $  28,180 3.68% $  27,597 3.74% 
                  
Tax-equivalent adjustment   $   81  0.01% $   199  0.02% $   209  0.03% $   215  0.03% $   194  0.02% 
                  
Supplemental Information Regarding Accretion of Fair Value Marks               
   Interest  Increase (Decrease) Effect on Yield or Rate  Increase (Decrease) Effect on Yield or Rate  Increase (Decrease) Effect on Yield or Rate  Increase (Decrease) Effect on Yield or Rate  Increase (Decrease) Effect on Yield or Rate 
Loans and leases Income$  2,702 0.33% $  276 0.04% $  708 0.10% $  402 0.06% $  726 0.12% 
Retail time deposits Expense   (380)-0.29%    (13)-0.01%    (15)-0.02%    (18)-0.02%    (19)-0.02% 
Long-term FHLB advances and other borrowings Expense   15 0.05%    (31)-0.09%    (30)-0.08%    (30)-0.07%    (30)-0.07% 
Jr. subordinated debt Expense   40  0.76%    -  0.00%    -  0.00%    -  0.00%    -  0.00% 
Net interest income from fair value marks  $   3,027    $   320    $   753    $   450    $   775    
Purchase accounting effect on tax-equivalent margin  0.32%  0.04%  0.09%  0.06%  0.11% 
* Average loans and leases include portfolio loans and leases, and loans held for sale. Non-accrual loans are also included in the average loan and leases balances.        
                  
                  

 

Bryn Mawr Bank Corporation           
Appendix - Non-GAAP to GAAP Reconciliations and Calculation of Non-GAAP Performance Measures (unaudited)        
(dollars in thousands, except per share data)           
            
Statement on Non-GAAP Measures: The Corporation believes the presentation of the following non-GAAP financial measures provides useful supplemental information that is essential to an investor’s proper understanding of the results of operations and financial condition of the Corporation. Management uses non-GAAP financial measures in its analysis of the Corporation’s performance. These non-GAAP measures should not be viewed as substitutes for the financial measures determined in accordance with GAAP, nor are they necessarily comparable to  non-GAAP performance measures that may be presented by other companies.  
            
 As of or For the Three Months Ended  
 March 31, 2018 December 31, 2017 September 30, 2017 June 30, 2017 March 31, 2017  
Reconciliation of Net Income to Net Income (core):           
Net income (a GAAP measure)$  15,286  $  (6,200) $  10,739  $  9,433  $  9,044   
Less: Tax-effected non-core noninterest income:           
  (Gain) loss on sale of investment securities available for sale   (6)    (18)    (47)    -     (1)  
Add: Tax-effected non-core noninterest expense items:           
  Due diligence, merger-related and merger integration  expenses   3,412     2,280     553     803     332   
Add: Federal income tax expense related to re-measurement of net deferred tax asset due to tax reform legislation.   590     15,193     -     -     -   
Net income (core) (a non-GAAP measure)$   19,282   $   11,255   $   11,245   $   10,236   $   9,375    
            
Calculation of Basic and Diluted Earnings per Common Share (core):          
Weighted average common shares outstanding   20,202,969     17,632,697     17,023,046     16,984,563     16,954,132   
Dilutive common shares   222,287     211,975     230,936     248,204     228,557   
Weighted average diluted shares    20,425,256     17,844,672     17,253,982     17,232,767     17,182,689   
Basic earnings per common share (core) (a non-GAAP measure)$  0.95  $  0.64  $  0.66  $  0.60  $  0.55   
Diluted earnings per common share (core) (a non-GAAP measure)$  0.94  $  0.63  $  0.65  $  0.59  $  0.55   
            
Calculation of Return on Average Tangible Equity:           
Net income (loss)$  15,286  $  (6,200) $  10,739  $  9,433  $  9,044   
Add: Tax-effected amortization and impairment of intangible assets   694     440     440     447     450   
Net tangible income (numerator)$  15,980  $  (5,760) $  11,179  $  9,880  $  9,494   
            
Average shareholders' equity$  526,434  $  427,318  $  397,357  $  389,716  $  382,214   
Less: Average goodwill and intangible assets   (205,529)    (142,652)    (128,917)    (126,537)    (124,884)  
Net average tangible equity (denominator)$  320,905  $  284,666  $  268,440  $  263,179  $  257,330   
            
Return on tangible equity (a non-GAAP measure) 20.20%  -8.03%  16.52%  15.06%  14.96%  
            
Calculation of Return on Average Tangible Equity (core):           
Net income (core) (a non-GAAP measure)$  19,282  $  11,255  $  11,245  $  10,236  $  9,375   
Add: Tax-effected amortization and impairment of intangible assets   694     440     440     447     450   
Net tangible income (core) (numerator)$  19,976  $  11,695  $  11,685  $  10,683  $  9,825   
            
Average shareholders' equity$  526,434  $  427,318  $  397,357  $  389,716  $  382,214   
Less: Average goodwill and intangible assets   (205,529)    (142,652)    (128,917)    (126,537)    (124,884)  
Net average tangible equity (denominator)$  320,905  $  284,666  $  268,440  $  263,179  $  257,330   
            
Return on tangible equity (core) (a non-GAAP measure) 25.25%  16.30%  17.27%  16.28%  15.48%  
            
Calculation of Tangible Equity Ratio:           
Total shareholders' equity$  533,061  $  528,119  $  401,892  $  394,977  $  388,095   
Less: Goodwill and intangible assets   (207,287)    (205,855)    (128,534)    (129,211)    (124,629)  
Net tangible equity (numerator)$  325,774  $  322,264  $  273,358  $  265,766  $  263,466   
            
Total assets$  4,300,376  $  4,449,720  $  3,476,821  $  3,438,219  $  3,292,617   
Less: Goodwill and intangible assets   (207,287)    (205,855)    (128,534)    (129,211)    (124,629)  
Tangible assets (denominator)$  4,093,089  $  4,243,865  $  3,348,287  $  3,309,008  $  3,167,988   
            
Tangible equity ratio 7.96%  7.59%  8.16%  8.03%  8.32%  
            
Calculation of Return on Average Assets (core)           
Return on average assets (GAAP) 1.46%  -0.68%  1.18%  1.09%  1.10%  
Effect of adjustment to GAAP net income to core net income 0.38%  1.90%  0.04%  0.11%  0.04%  
Return on average assets (core) 1.84%  1.23%  1.23%  1.19%  1.14%  
            
Calculation of Return on Average Equity (core)           
Return on average equity (GAAP) 11.78%  -5.76%  10.72%  9.60%  9.39%  
Effect of adjustment to GAAP net income to core net income 3.08%  16.21%  0.51%  0.93%  0.56%  
Return on average equity (core) 14.85%  10.45%  11.23%  10.53%  9.95%  
            
Calculation of Efficiency Ratio:           
Noninterest expense$  36,030  $  31,056  $  28,184  $  28,495  $  26,660   
Less: certain noninterest expense items*:           
  Amortization of intangibles   (879)    (677)    (677)    (687)    (693)  
  Due diligence, merger-related and merger integration  expenses   (4,319)    (3,507)    (850)    (1,236)    (511)  
Noninterest expense (adjusted) (numerator)$  30,832  $  26,872  $  26,657  $  26,572  $  25,456   
            
Noninterest income$  19,536  $  15,536  $  15,584  $  14,785  $  13,227   
Less: non-core noninterest income items:           
  Loss (gain) on sale of investment securities available for sale   (8)    (28)    (72)    -     (2)  
Noninterest income (core)$  19,528  $  15,508  $  15,512  $  14,785  $  13,225   
Net interest income   37,439     30,321     29,438     27,965     27,403   
Noninterest income (core) and net interest income (denominator)$  56,967  $  45,829  $  44,950  $  42,750  $  40,628   
            
Efficiency ratio 54.12%  58.64%  59.30%  62.16%  62.66%  
* In calculating the Corporation's efficiency ratio, which is used by Management to identify the cost of generating each dollar of core revenue, certain non-core income and expense items as well as the amortization of intangible assets, are excluded.  
            
Supplemental Loan and Allowance Information Used to Calculate Non-GAAP Measures          
            
Total Allowance$  17,662  $  17,525  $  17,004  $  16,399  $  17,107   
Less: Allowance on acquired loans   92     50     47     25     38   
Allowance on originated loans and leases$  17,570  $  17,475  $  16,957  $  16,374  $  17,069   
            
Total Allowance$  17,662  $  17,525  $  17,004  $  16,399  $  17,107   
Loan mark on acquired loans   32,260     34,790     10,223     11,084     11,544   
Total Allowance + Loan mark$  49,922  $  52,315  $  27,227  $  27,483  $  28,651   
            
Total Portfolio loans and leases$  3,305,795  $  3,285,858  $  2,677,345  $  2,666,651  $  2,555,589   
Less: Originated loans and leases   2,564,825     2,487,296     2,433,054     2,409,964     2,286,814   
Net acquired loans$  740,970  $  798,562  $  244,291  $  256,687  $  268,775   
Add: Loan mark on acquired loans   32,260     34,790     10,223     11,084     11,544   
Gross acquired loans (excludes loan mark)$  773,230  $  833,352  $  254,514  $  267,771  $  280,319   
Originated loans and leases   2,564,825     2,487,296     2,433,054     2,409,964     2,286,814   
Total Gross portfolio loans and leases$  3,338,055  $  3,320,648  $  2,687,568  $  2,677,735  $  2,567,133   
            


FOR MORE INFORMATION CONTACT:             
Frank Leto, President, CEO
610-581-4730
Mike Harrington, CFO
610-526-2466