EX-99.1 2 ex_97161.htm EXHIBIT 99.1 ex_97161.htm

Exhibit 99.1

 

 

 

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

 

 

Bryn Mawr Bank Corporation Reports

Record Quarterly Net Income of $10.7 Million, Driven by Strong Net

Interest Income, Noninterest Income and Expense Control,

Declares Dividend of $0.22

 

 

BRYN MAWR, Pa., October 19, 2017 - Bryn Mawr Bank Corporation (NASDAQ: BMTC) (the “Corporation”), parent of The Bryn Mawr Trust Company (the “Bank”), today reported net income of $10.7 million and diluted earnings per share of $0.62 for the three months ended September 30, 2017, as compared to net income of $9.4 million, or $0.55 diluted earnings per share, for the three months ended June 30, 2017, and $9.4 million, or $0.55 diluted earnings per share, for the three months ended September 30, 2016. Included in net income for the three months ended September 30, 2017 and June 30, 2017 were pre-tax due diligence and merger-related expenses of $850 thousand and $1.2 million, respectively, primarily related to the pending merger with Royal Bancshares of Pennsylvania, Inc. (“Royal Bank”).

 

On a non-GAAP basis, core net income, which excludes certain non-core income and expense items, as detailed in the appendix to this earnings release, was $11.2 million, or $0.65 diluted earnings per share, for the three months ended September 30, 2017 as compared to $10.2 million, or $0.59 diluted earnings per share, for the three months ended June 30, 2017 and $9.4 million, or $0.55 diluted earnings per share, for the three months ended September 30, 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.

 

 
 

 

“The Corporation continued to produce solid results in the quarter, benefiting from our focus on new business development and the strategic investments we have made over the last few years in both revenue generation as well as enabling technologies,” commented Frank Leto, President and Chief Executive Officer, adding, “As a result, we saw growth in both net interest income as well as fee income during the quarter with very little increase in expenses, net of merger costs, driving our return on average equity over one percent higher in the quarter, when compared to last quarter.”

 

Mr. Leto continued, “The preparations for the merger with Royal Bank continue as we await final regulatory approval. Staff and management have been working diligently to ensure a smooth transition and we expect the transaction to close during the fourth quarter of 2017”. In addition to regulatory approval, the merger with Royal Bank is subject to certain closing conditions.

 

On October 19, 2017, the Board of Directors of the Corporation declared a quarterly dividend of $0.22 per share, payable December 1, 2017 to shareholders of record as of November 1, 2017.

 

SIGNIFICANT ITEMS OF NOTE 

Results of Operations – Third Quarter 2017 Compared to Second Quarter 2017

 

●

Net income for the three months ended September 30, 2017 was $10.7 million, or $0.62 diluted earnings per share, as compared to $9.4 million, or $0.55 diluted earnings per share for the three months ended June 30, 2017. Contributing to the increase was a $1.5 million increase in net interest income, a $430 thousand increase in insurance revenues and a $279 thousand increase in gain on sale of loans. In addition to these improving revenue items, linked-quarter decreases of $386 thousand and $310 thousand in due diligence and merger-related expenses and professional fees, respectively, contributed to the improvement in net income. The decrease in the effective tax rate from 34.2% for the second quarter of 2017 to 30.7% for the third quarter of 2017 was the result of a $581 thousand increase in excess tax benefit primarily related to the vesting of restricted stock awards during the third quarter of 2017. Partially offsetting these positive changes to net income was a $1.4 million increase in the provision for loan and lease losses (the “Provision”) from the second quarter to the third quarter of 2017.

 

●

Tax-equivalent net interest income for the three months ended September 30, 2017 was $29.6 million, an increase of $1.5 million, or 5.2%, from $28.1 million for the three months ended June 30, 2017. The accretion of purchase accounting adjustments increased the tax-equivalent net interest income recorded for the third quarter of 2017 by $753 thousand, as compared to an increase of $450 thousand for the three months ended June 30, 2017.

 

Average loans and leases for the three months ended September 30, 2017 increased by $64.7 million from the three months ended June 30, 2017 and experienced an eleven basis point increase in tax-equivalent yield. The increase in the prime rate, which occurred toward the end of the second quarter, contributed to the increase in tax-equivalent yield on loans, as did the accretion of purchase accounting adjustments, which totaled $708 thousand for the third quarter of 2017 as compared to $402 thousand for the second quarter of 2017. Excluding the effect of the accretion of purchase accounting adjustments on loans and leases, the tax-equivalent yield on loans and leases increased by seven basis points on a linked-quarter basis. The net effect of the yield and volume increases on average loans and leases was a $1.7 million increase in tax-equivalent interest income on loans and leases from the second quarter of 2017 to the third quarter of 2017.

 

Average available for sale investment securities increased by $32.3 million for the three months ended September 30, 2017 as compared to the three months ended June 30, 2017, and experienced a one basis point tax-equivalent yield increase. The increase in volume and yield on available for sale investment securities resulted in a $204 thousand increase in tax-equivalent interest income for the third quarter of 2017 as compared to the second quarter of 2017.

 

 
 

 

Partially offsetting the increase in average loans and leases and available for sale investment securities was a $17.8 million increase in average interest-bearing deposits accompanied by a four basis point increase in rate paid on deposits resulting in a $215 thousand increase in interest expense on deposits for the third quarter of 2017 as compared to the second quarter of 2017. In addition to the increase in average deposits, average borrowings increased $68.3 million for the three months ended September 30, 2017 as compared to the three months ended June 30, 2017, with the rate paid decreasing by four basis points. The volume increase and rate decrease resulted in a $273 thousand increase in interest expense on borrowings on a linked-quarter basis.

 

●

The tax-equivalent net interest margin of 3.71% for the third quarter of 2017 increased three basis points from 3.68% for the second quarter of 2017. During the third quarter of 2017, the accretion of purchase accounting adjustments contributed nine basis points to the tax-equivalent net interest margin as compared to a contribution of six basis points for the three months ended June 30, 2017. As a result, excluding the effect of the accretion of purchase accounting adjustments, the tax-equivalent net interest margin remained unchanged on a linked-quarter basis.

 

●

Noninterest income for the three months ended September 30, 2017 increased by $799 thousand from the second quarter of 2017. Largely contributing to this increase was an increase of $430 thousand in insurance revenues, as the impact of the May 24, 2017 acquisition of Hirshorn Boothby was experienced for a full quarter, and a $279 thousand increase in gain on sale of loans, primarily related to the sale of SBA-guaranteed loans. Partially offsetting these increases were decreases of $156 thousand in fees for wealth management services, as some of the fees for tax-related services during the second quarter of 2017 were not repeated in the third quarter, and a $110 thousand linked-quarter decrease in capital markets revenue.

 

●

Noninterest expense for the three months ended September 30, 2017 decreased $311 thousand, to $28.2 million, as compared to $28.5 million for the second quarter of 2017. The $310 thousand decrease in professional fees was partially related to second quarter 2017 initial start-up costs associated with BMT Investment Advisers, a subsidiary established to advise the Corporation’s new proprietary mutual fund, the BMT Multi-Cap Fund (MUTF: BMTMX). In addition, due diligence and merger-related expenses decreased by $386 thousand between the periods. These decreases were partially offset by increases of $238 thousand and $211 thousand in occupancy and bank premises expense and other operating expenses, respectively.

 

●

For the three months ended September 30, 2017, net loan and lease charge-offs totaled $728 thousand, as compared to $625 thousand for the second quarter of 2017. The Provision for the three months ended September 30, 2017 was $1.3 million, a $1.4 million increase from the $83 thousand release from the allowance for loan and lease losses (the “Allowance”) for the second quarter of 2017. The increase in the Provision was driven by loan growth as well as changes to certain qualitative factors used to estimate the incurred loan and lease losses in the loan portfolio as of September 30, 2017.

 

●

Income tax expense for the third quarter of 2017 decreased by $139 thousand as compared to the second quarter of 2017. The 347 basis point decrease in the effective tax rate from the second quarter of 2017 to the third quarter of 2017 was primarily the result of recognizing excess tax benefits associated with the vesting of restricted stock awards and the exercise of stock options. Excess tax benefits totaled $694 thousand for the third quarter of 2017 as compared to $113 thousand for the second quarter of 2017.

 

 
 

 

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

 

●

Net income for the three months ended September 30, 2017 was $10.7 million, or $0.62 diluted earnings per share, as compared to $9.4 million, or diluted earnings per share of $0.55, for the same period in 2016. Contributing to the increase in net income was an increase of $2.7 million in net interest income and a $1.8 million increase in noninterest income, with wealth management, insurance and capital markets performance contributing to the increase. Partially offsetting these increases was a $2.8 million increase in noninterest expense, with increases in salaries and wages and due diligence and merger-related expenses being offset by decreases in Pennsylvania bank shares tax, amortization of intangible assets and professional fees.

 

●

Tax-equivalent net interest income for the three months ended September 30, 2017 was $29.6 million, an increase of $2.7 million, or 10.3%, from $26.9 million for the same period in 2016. The accretion of purchase accounting adjustments increased the tax-equivalent net interest income recorded for the third quarter of 2017 by $753 thousand, as compared to an increase of $637 thousand for the same period in 2016.

 

Average loans and leases for the three months ended September 30, 2017 increased by $203.3 million from the same period in 2016 and experienced a ten basis point increase in tax-equivalent yield. The increase in the prime rate, which occurred toward the end of the second quarter, contributed to the increase in tax-equivalent yield on loans, as did the accretion of purchase accounting adjustments, which totaled $708 thousand for the third quarter of 2017 as compared to $578 thousand for the same period in 2017. Excluding the effect of the accretion of purchase accounting adjustments on loans and leases, the tax-equivalent yield on loans and leases increased by nine basis points. The net effect of the yield and volume increases on average loans and leases was a $3.0 million increase in tax-equivalent interest income on loans.

 

Average available for sale investment securities increased by $85.2 million for the three months ended September 30, 2017 as compared to the same period in 2016, 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 $682 thousand increase in tax-equivalent interest income for the third quarter of 2017 as compared to the same period in 2016.

 

Partially offsetting the increase in average loans and leases and available for sale investment securities was a $141.8 million increase in average interest-bearing deposits accompanied by an eleven basis point increase in rate paid on deposits resulting in a $623 thousand increase in interest expense on deposits for the third quarter of 2017 as compared to the same period in 2016. In addition to the increase in average deposits, average borrowings increased $78.9 million for the three months ended September 30, 2017 as compared to the same period in 2016 with the rate paid remaining unchanged, which resulted in a $340 thousand increase in interest expense on borrowings.

 

●

The tax-equivalent net interest margin of 3.71% for the three months ended September 30, 2017 remained unchanged from the same period in 2016. The contribution to the tax-equivalent margin from the accretion of purchase accounting adjustments for both periods also remained unchanged at nine basis points.

 

 
 

 

●

Noninterest income for the three months ended September 30, 2017 increased by $1.8 million from the same period in 2016. An increase of $551 thousand in fees for wealth management services resulted as wealth assets under management, administration, supervision and brokerage increased $2.46 billion from September 30, 2016 to September 30, 2017. Insurance revenue increased $487 thousand for the third 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 $843 thousand to noninterest income.

 

●

Noninterest expense for the three months ended September 30, 2017 increased $2.8 million from the same period in 2016. The increase was largely related to a $2.0 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. In addition, an $850 thousand increase in due diligence, merger-related and merger integration costs primarily related to the Royal Bank merger, and a $597 thousand increase in other operating expenses, which included a $368 thousand increase in contributions, largely comprised of contributions to local schools under the Pennsylvania Educational Improvement Tax Credit (EITC) program, contributed to the increase. Contributions made through the EITC program result in tax credits towards the Bank’s Pennsylvania bank shares tax obligation.

 

●

For the three months ended September 30, 2017, a Provision of $1.3 million was recorded as compared to $1.4 million for the same period in 2016. Net charge-offs for the third quarter of 2017 were $728 thousand as compared to $704 thousand for the same period in 2016.

 

Financial Condition – September 30, 2017 Compared to December 31, 2016

 

●

Total portfolio loans and leases of $2.68 billion as of September 30, 2017, increased by $141.9 million from December 31, 2016. Loan growth was concentrated in the commercial mortgage and commercial and industrial segments of the portfolio, which increased by $113.7 million, or 10.2%, and $17.8 million, or 3.1%, respectively.

 

●

The Allowance as of September 30, 2017 was $17.0 million, or 0.64% 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, management also calculates two non-GAAP measures: the Allowance as a percentage of originated loans and leases, which was 0.70% as of September 30, 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 1.01% as of September 30, 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 change in the Allowance ratios was the result of the growth of the loan portfolio and improvements in certain qualitative factors and economic indicators, along with decreases in certain historic charge-off rates over the lookback period.

 

 
 

 

●

Available for sale investment securities as of September 30, 2017 totaled $471.7 million, a decrease of $95.3 million from December 31, 2016. The decrease in available for sale investment securities was primarily the result of the maturing, in January 2017, of $200 million of short-term U.S. Treasury bills. Partially offsetting the effect of this decrease in U.S Treasury bills were increases of $104.7 million in available for sale investment securities since December 31, 2016, primarily in U.S. government and agency bonds and mortgage-backed securities. A portion of this increase is related to the strategic repositioning of the investment portfolio in anticipation of the Royal Bank merger.

 

●

Total assets as of September 30, 2017 were $3.48 billion, an increase of $55.3 million from December 31, 2016. Increases in portfolio loans and leases were largely offset by a decrease in available for sale investment securities discussed in the previous bullet point.

 

●

Wealth assets under management, administration, supervision and brokerage totaled $12.43 billion as of September 30, 2017, an increase of $1.10 billion from December 31, 2016. The increase in wealth assets was comprised of a $456.9 million increase in account balances whose fees are based on market value, and a $646.0 million increase in fixed rate flat-fee account types.

 

 
 

 

●

Deposits of $2.68 billion as of September 30, 2017 increased $104.5 million from December 31, 2016. Over 76% of this increase was in interest-bearing deposits, which grew by $80.1 million.

 

●

Borrowings of $315.5 million as of September 30, 2017 decreased $78.4 million from December 31, 2016. The decrease was comprised of a $23.3 million decrease in short-term borrowings and a $55.1 million decrease in long-term FHLB advances. In January 2017, $200.0 million of short-term borrowings associated with the maturing of $200.0 million of short-term U.S. Treasury bills were repaid. The net increase in short-term borrowings of $176.7 million was utilized to support loan growth, purchases of available for sale investment securities and to replace $55.1 million of long-term FHLB advances which matured during the first nine months of 2017.

 

●

The capital ratios for the Bank and the Corporation, as of September 30, 2017, as shown in the attached tables, indicate levels above the regulatory minimum to be considered “well capitalized.”

 

 

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 obtain applicable regulatory approvals with respect to, or our inability to complete, the contemplated Royal Bank acquisition, that the integration of acquired businesses with the Corporation may take longer than anticipated or be more costly to complete and that the anticipated benefits, including any anticipated cost savings or strategic gains may be significantly harder to achieve or take longer than anticipated or may not be achieved, our need for capital, our ability to control operating costs and expenses, and to manage loan and lease delinquency rates; the credit risks of lending activities and overall quality of the composition of our loan, lease and securities portfolio; the impact of economic conditions, consumer and business spending habits, and real estate market conditions on our business and in our market area; changes in the levels of general interest rates, deposit interest rates, or net interest margin and funding sources; changes in banking regulations and policies and the possibility that any banking agency approvals we might require for certain activities will not be obtained in a timely manner or at all or will be conditioned in a manner that would impair our ability to implement our business plans; changes in accounting policies and practices; the inability of key third-party providers to perform their obligations to us; our ability to attract and retain key personnel; competition in our marketplace; war or terrorist activities; material differences in the actual financial results, cost savings and revenue enhancements associated with our acquisitions; and other factors as described in our securities filings. All forward-looking statements and information set forth herein are based on management’s current beliefs and assumptions as of the date hereof and speak only as of the date they are made. The Corporation does not undertake to update forward-looking statements.

 

For a complete discussion of the assumptions, risks and uncertainties related to our business, you are encouraged to review our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K, as 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 Nine Months Ended

  
   

September 30,

2017

    

June 30,

2017

    

March 31,

2017

    

December 31,

2016

    

September 30,

2016

    

September 30,

2017

    

September 30,

2016

  

Consolidated Balance Sheet (selected items)

                                                        

Interest-bearing deposits with banks

   $ 36,870     $ 30,806     $ 69,978     $ 34,206     $ 30,118                  

Investment securities (AFS, HTM and Trading)

     482,399       452,869       400,360       573,763       373,508                  

Loans held for sale

     6,327       8,590       3,015       9,621       11,506                  

Portfolio loans and leases

     2,677,345       2,666,651       2,555,589       2,535,425       2,493,357                  

Allowance for loan and lease losses ("ALLL")

     (17,004 )     (16,399 )     (17,107 )     (17,486 )     (17,744 )                

Goodwill and other intangible assets

     128,534       129,211       124,629       125,170       126,000                  

Total assets

     3,476,821       3,438,219       3,292,617       3,421,530       3,174,080                  

Deposits - interest-bearing

     1,923,567       1,863,288       1,865,009       1,843,495       1,759,862                  

Deposits - non-interest-bearing

     760,614       818,475       771,556       736,180       718,015                  

Short-term borrowings

     180,874       130,295       23,613       204,151       50,065                  

Long-term FHLB advances and other borrowings

     134,651       164,681       174,711       189,742       204,772                  

Subordinated notes

     29,573       29,559       29,546       29,532       29,518                  

Total liabilities

     3,074,929       3,043,242       2,904,522       3,040,403       2,795,621                  

Shareholders' equity

     401,892       394,977       388,095       381,127       378,459                  
                                                         

Average Balance Sheet (selected items)

                                                        

Interest-bearing deposits with banks

   $ 26,628     $ 26,266     $ 39,669     $ 55,298     $ 33,532     $ 30,807     $ 39,157  

Investment securities (AFS, HTM and Trading)

     462,700       429,400       393,306       386,658       373,616       428,723       368,594  

Loans held for sale

     3,728       3,855       4,238       11,591       12,887       3,938       8,752  

Portfolio loans and leases

     2,676,589       2,611,755       2,551,439       2,506,376       2,464,085       2,613,720       2,390,931  

Total interest-earning assets

     3,169,645       3,071,276       2,988,652       2,959,923       2,884,120       3,077,188       2,807,434  

Goodwill and intangible assets

     128,917       126,537       124,884       125,614       126,505       126,794       127,398  

Total assets

     3,441,906       3,333,307       3,244,060       3,215,868       3,142,019       3,340,484       3,068,642  

Deposits - interest-bearing

     1,871,494       1,853,660       1,852,194       1,809,276       1,729,689       1,859,188       1,693,663  

Short-term borrowings

     182,845       98,869       47,603       40,629       40,966       110,268       35,836  

Long-term FHLB advances

     155,918       171,567       182,507       198,454       218,920       169,900       235,002  

Subordinated notes

     29,564       29,550       29,537       29,523       29,509       29,550       29,496  

Total interest-bearing liabilities

     2,239,821       2,153,646       2,111,841       2,077,882       2,019,084       2,168,906       1,993,997  

Total liabilities

     3,044,549       2,943,591       2,861,846       2,837,825       2,769,065       2,950,666       2,701,973  

Shareholders' equity

     397,357       389,716       382,214       378,043       372,954       389,818       366,669  
                                                         

Income Statement

                                                        

Net interest income

   $ 29,438     $ 27,965     $ 27,403     $ 26,990     $ 26,717     $ 84,806     $ 79,246  

Provision for loan and lease losses

     1,333       (83 )     291       1,059       1,412       1,541       3,267  

Noninterest income

     15,584       14,785       13,227       13,248       13,786       43,596       40,920  

Noninterest expense

     28,184       28,495       26,660       25,087       25,371       83,339       76,787  

Income tax expense

     4,766       4,905       4,635       4,684       4,346       14,306       13,484  

Net income

     10,739       9,433       9,044       9,408       9,374       29,216       26,628  

Basic earnings per share

     0.63       0.56       0.53       0.56       0.56       1.72       1.58  

Diluted earnings per share

     0.62       0.55       0.53       0.55       0.55       1.70       1.57  

Net income (core) (1)

     11,245       10,236       9,375       9,402       9,392       30,857       26,684  

Basic earnings per share (core) (1)

     0.66       0.60       0.55       0.56       0.56       1.82       1.58  

Diluted earnings per share (core) (1)

     0.65       0.59       0.55       0.55       0.55       1.79       1.57  

Cash dividends paid per share

     0.22       0.21       0.21       0.21       0.21       0.64       0.61  

Profitability Indicators

                                                        

Return on average assets

     1.24 %     1.14 %     1.13 %     1.16 %     1.19 %     1.17 %     1.16 %

Return on average equity

     10.72 %     9.71 %     9.60 %     9.90 %     10.00 %     10.02 %     9.70 %

Return on tangible equity(1)

     16.52 %     15.06 %     14.96 %     15.68 %     16.06 %     23.42 %     15.83 %

Tax-equivalent net interest margin

     3.71 %     3.68 %     3.74 %     3.65 %     3.71 %     3.71 %     3.79 %

Efficiency ratio(1)

     59.30 %     62.16 %     62.66 %     60.30 %     60.41 %     61.32 %     61.64 %

Mortgage Banking Information

                                                        

Mortgage loans originated

   $ 48,159     $ 46,848     $ 48,550     $ 78,749     $ 84,885     $ 143,557     $ 201,310  

Residential mortgage loans sold - servicing retained

     28,224       21,790       27,690       44,763       40,462       77,704       93,371  

Residential mortgage loans sold - servicing released

     4,982       3,819       4,981       4,632       10,522       13,782       18,197  

Total residential mortgage loans sold

   $ 33,206     $ 25,609     $ 32,671     $ 49,395     $ 50,984     $ 91,486     $ 111,568  

Residential mortgage loans serviced for others

   $ 647,037     $ 641,165     $ 638,553     $ 631,889     $ 618,134                  

Share Data

                                                        

Closing share price

   $ 43.80     $ 42.50     $ 39.50     $ 42.15     $ 31.99                  

Book value per common share

   $ 23.57     $ 23.25     $ 22.87     $ 22.50     $ 22.40                  

Tangible book value per common share

   $ 16.03     $ 15.64     $ 15.53     $ 15.11     $ 14.94                  

Price / book value

     185.82 %     182.81 %     172.71 %     187.34 %     142.80 %                

Price / tangible book value

     273.19 %     271.69 %     254.41 %     278.96 %     214.07 %                

Weighted average diluted shares outstanding

     17,233,548       17,232,767       17,182,689       17,164,675       17,072,358       17,222,051       16,994,455  

Shares outstanding, end of period

     17,050,151       16,989,849       16,969,451       16,939,715       16,893,878                  
                                                         

Wealth Management Information:

                                                        

Wealth assets under mgmt, administration, supervision and brokerage (2)

   $ 12,431,370     $ 12,050,555     $ 11,725,460     $ 11,328,457     $ 9,969,745                  

Fees for wealth management services

   $ 9,651     $ 9,807     $ 9,303     $ 9,327     $ 9,100                  

Capital Ratios

                                                        

Bryn Mawr Trust Company

                                                        

Tier I capital to risk weighted assets ("RWA")

     10.78 %     10.29 %     10.58 %     10.50 %     10.99 %                

Total (Tier II) capital to RWA

     11.42 %     10.90 %     11.25 %     11.19 %     11.70 %                

Tier I leverage ratio

     8.75 %     8.76 %     8.83 %     8.73 %     9.17 %                

Tangible equity ratio (1)

     8.46 %     8.24 %     8.46 %     7.85 %     8.85 %                

Common equity Tier I capital to RWA

     10.78 %     10.29 %     10.58 %     10.50 %     10.99 %                
                                                         

Bryn Mawr Bank Corporation

                                                        

Tier I capital to RWA

     10.50 %     10.10 %     10.50 %     10.51 %     10.42 %                

Total (Tier II) capital to RWA

     12.23 %     11.79 %     12.30 %     12.35 %     12.30 %                

Tier I leverage ratio

     8.53 %     8.63 %     8.77 %     8.73 %     8.70 %                

Tangible equity ratio (1)

     8.16 %     8.03 %     8.32 %     7.76 %     8.28 %                

Common equity Tier I capital to RWA

     10.50 %     10.10 %     10.50 %     10.51 %     10.42 %                
                                                         

Asset Quality Indicators

                                                        
                                                         

Net loan and lease charge-offs ("NCO"s)

   $ 728     $ 625     $ 670     $ 1,317     $ 704     $ 2,023     $ 1,380  
                                                         

Nonperforming loans and leases ("NPL"s)

   $ 4,472     $ 7,237     $ 7,329     $ 8,363     $ 9,883                  

Other real estate owned ("OREO")

     865       1,122       978       1,017       867                  

Total nonperforming assets ("NPA"s)

   $ 5,337     $ 8,359     $ 8,307     $ 9,380     $ 10,750                  
                                                         

Nonperforming loans and leases 30 or more days past due

   $ 2,337     $ 4,076     $ 5,097     $ 6,072     $ 6,684                  

Performing loans and leases 30 to 89 days past due

     4,558       6,258       6,077       3,062       2,537                  

Performing loans and leases 90 or more days past due

     -       -       -       -       -                  

Total delinquent loans and leases

   $ 6,895     $ 10,334     $ 11,174     $ 9,134     $ 9,221                  
                                                         

Delinquent loans and leases to total loans and leases

     0.26 %     0.39 %     0.44 %     0.36 %     0.37 %                

Delinquent performing loans and leases to total loans and leases

     0.17 %     0.23 %     0.24 %     0.12 %     0.10 %                

NCOs / average loans and leases (annualized)

     0.11 %     0.10 %     0.11 %     0.21 %     0.11 %     0.10 %     0.08 %

NPLs / total portfolio loans and leases

     0.17 %     0.27 %     0.29 %     0.33 %     0.40 %                

NPAs / total loans and leases and OREO

     0.20 %     0.31 %     0.32 %     0.37 %     0.43 %                

NPAs / total assets

     0.15 %     0.24 %     0.25 %     0.27 %     0.34 %                

ALLL / NPLs

     380.23 %     226.60 %     233.42 %     209.09 %     179.54 %                

ALLL / portfolio loans

     0.64 %     0.61 %     0.67 %     0.69 %     0.71 %                

ALLL on originated loans and leases / Originated loans and leases (1)

     0.70 %     0.68 %     0.75 %     0.78 %     0.81 %                

(Total Allowance + Loan mark) / Total Gross portfolio loans and leases (1)

     1.01 %     1.03 %     1.12 %     1.17 %     1.24 %                
                                                         

Troubled debt restructurings ("TDR"s) included in NPLs

   $ 2,033     $ 2,470     $ 2,681     $ 2,632     $ 1,680                  

TDRs in compliance with modified terms

     6,597       6,148       6,492       6,395       6,305                  

Total TDRs

   $ 8,630     $ 8,618     $ 9,173     $ 9,027     $ 7,985                  

 

(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)
 

 

   

September 30,

2017

    

June 30,

2017

    

March 31,

2017

    

December 31,

2016

    

September 30,

2016

  

Assets

                                        

Cash and due from banks

   $ 8,682     $ 19,352     $ 17,457     $ 16,559     $ 18,905  

Interest-bearing deposits with banks

     36,870       30,806       69,978       34,206       30,118  

Cash and cash equivalents

     45,552       50,158       87,435       50,765       49,023  

Investment securities, available for sale

     471,721       443,687       391,028       566,996       366,910  

Investment securities, held to maturity

     6,255       5,161       5,194       2,879       2,896  

Investment securities, trading

     4,423       4,021       4,138       3,888       3,702  

Loans held for sale

     6,327       8,590       3,015       9,621       11,506  

Portfolio loans and leases, originated

     2,433,054       2,409,964       2,286,814       2,240,987       2,176,549  

Portfolio loans and leases, acquired

     244,291       256,687       268,775       294,438       316,808  

Total portfolio loans and leases

     2,677,345       2,666,651       2,555,589       2,535,425       2,493,357  

Less: Allowance for losses on originated loan and leases

     (16,957 )     (16,374 )     (17,069 )     (17,458 )     (17,716 )

Less: Allowance for losses on acquired loan and leases

     (47 )     (25 )     (38 )     (28 )     (28 )

Total allowance for loan and lease losses

     (17,004 )     (16,399 )     (17,107 )     (17,486 )     (17,744 )

Net portfolio loans and leases

     2,660,341       2,650,252       2,538,482       2,517,939       2,475,613  

Premises and equipment

     44,544       44,446       40,515       41,778       42,559  

Accrued interest receivable

     9,287       8,717       8,392       8,533       8,066  

Mortgage servicing rights

     5,732       5,683       5,686       5,582       4,793  

Bank owned life insurance

     39,881       39,680       39,479       39,279       39,055  

Federal Home Loan Bank ("FHLB") stock

     16,248       15,168       8,505       17,305       13,185  

Goodwill

     107,127       107,127       104,765       104,765       104,765  

Intangible assets

     21,407       22,084       19,864       20,405       21,235  

Other investments

     8,941       8,682       8,716       8,627       9,121  

Other assets

     29,035       24,763       27,403       23,168       21,651  

Total assets

   $ 3,476,821     $ 3,438,219     $ 3,292,617     $ 3,421,530     $ 3,174,080  
                                         

Liabilities

                                        

Deposits

                                        

Noninterest-bearing

   $ 760,614     $ 818,475     $ 771,556     $ 736,180     $ 718,015  

Interest-bearing

     1,923,567       1,863,288       1,865,009       1,843,495       1,759,862  

Total deposits

     2,684,181       2,681,763       2,636,565       2,579,675       2,477,877  

Short-term borrowings

     180,874       130,295       23,613       204,151       50,065  

Long-term FHLB advances

     134,651       164,681       174,711       189,742       204,772  

Subordinated notes

     29,573       29,559       29,546       29,532       29,518  

Accrued interest payable

     2,267       2,830       2,722       2,734       1,854  

Other liabilities

     43,383       34,114       37,365       34,569       31,535  

Total liabilities

     3,074,929       3,043,242       2,904,522       3,040,403       2,795,621  
                                         

Shareholders' equity

                                        

Common stock

     21,248       21,162       21,141       21,111       21,064  

Paid-in capital in excess of par value

     235,412       234,654       233,910       232,806       231,398  

Less: common stock held in treasury, at cost

     (68,134 )     (67,091 )     (66,969 )     (66,950 )     (66,895 )

Accumulated other comprehensive (loss) income, net of tax

     (1,400 )     (1,564 )     (1,990 )     (2,409 )     2,128  

Retained earnings

     214,766       207,816       202,003       196,569       190,764  

Total shareholders equity

     401,892       394,977       388,095       381,127       378,459  

Total liabilities and shareholders' equity

   $ 3,476,821     $ 3,438,219     $ 3,292,617     $ 3,421,530     $ 3,174,080  

 

 
 

 

Bryn Mawr Bank Corporation

Supplemental Balance Sheet Information (unaudited)

(dollars in thousands)

 

   

Portfolio Loans and Leases as of

  
   

September 30,

2017

    

June 30,

2017

    

March 31,

2017

    

December 31,

2016

    

September 30,

2016

  

Commercial mortgages

   $ 1,224,571     $ 1,197,936     $ 1,137,870     $ 1,110,897     $ 1,089,621  

Home equity loans and lines

     206,974       208,480       203,962       208,000       206,578  

Residential mortgages

     422,524       416,488       418,264       413,540       418,408  

Construction

     133,505       156,581       145,699       141,964       133,269  

Total real estate loans

     1,987,574       1,979,485       1,905,795       1,874,401       1,847,876  
                                         

Commercial & Industrial

     597,595       599,203       567,917       579,791       565,497  

Consumer

     31,306       28,485       23,932       25,341       23,717  

Leases

     60,870       59,478       57,945       55,892       56,267  

Total non-real estate loans and leases

     689,771       687,166       649,794       661,024       645,481  

Total portfolio loans and leases

   $ 2,677,345     $ 2,666,651     $ 2,555,589     $ 2,535,425     $ 2,493,357  

 

 

   

Nonperforming Loans and Leases as of

  
   

September 30,

2017

    

June 30,

2017

    

March 31,

2017

    

December 31,

2016

    

September 30,

2016

  

Commercial mortgages

   $ 193     $ 818     $ 315     $ 320     $ 139  

Home equity loans and lines

     613       1,535       1,828       2,289       2,827  

Residential mortgages

     1,589       2,589       2,640       2,658       2,845  

Construction

     -       -       -       -       -  

Total nonperforming real estate loans

     2,395       4,942       4,783       5,267       5,811  
                                         

Commercial & Industrial

     1,977       2,112       2,471       2,957       3,960  

Consumer

     -       10       -       2       2  

Leases

     100       173       75       137       110  

Total nonperforming non-real estate loans and leases

     2,077       2,295       2,546       3,096       4,072  

Total nonperforming portfolio loans and leases

   $ 4,472     $ 7,237     $ 7,329     $ 8,363     $ 9,883  

 

 

   

Net Loan and Lease Charge-Offs (Recoveries) for the Three Months Ended

  
   

September 30,

2017

    

June 30,

2017

    

March 31,

2017

    

December 31,

2016

    

September 30,

2016

  

Commercial mortgage

   $ (3 )   $ (3 )   $ (3 )   $ (51 )   $ (4 )

Home equity loans and lines

     69       169       438       69       375  

Residential

     3       43       27       28       2  

Construction

     (1 )     (1 )     (1 )     (1 )     -  

Total net charge-offs of real estate loans

     68       208       461       45       373  
                                         

Commercial & Industrial

     298       185       59       1,128       95  

Consumer

     36       16       39       42       58  

Leases

     326       216       111       102       178  

Total net charge-offs of non-real estate loans and leases

     660       417       209       1,272       331  

Total net charge-offs

   $ 728     $ 625     $ 670     $ 1,317     $ 704  

 

 
 

 

Bryn Mawr Bank Corporation

Supplemental Balance Sheet Information (unaudited)

(dollars in thousands)

 

   

Investment Securities Available for Sale, at Fair Value

  
   

September 30,

2017

    

June 30,

2017

    

March 31,

2017

    

December 31,

2016

    

September 30,

2016

  

U.S. Treasury securities

  $ 100     $ 100     $ 100     $ 200,097     $ 101  

Obligations of the U.S. Government and agencies

    142,711       126,468       100,476       82,198       76,598  

State & political subdivisions - tax-free

     23,556       26,958       30,416       33,005       36,735  

State & political subdivisions - taxable

     524       524       524       525       529  

Mortgage-backed securities

     260,680       230,617       197,420       185,951       184,919  

Collateralized mortgage obligations

     39,595       42,549       45,476       48,694       51,344  

Other debt securities

     1,100       1,099       1,299       1,299       1,450  

Bond mutual funds

     -       11,956       11,920       11,895       11,847  

Other investments

     3,455       3,416       3,397       3,332       3,387  

Total investment securities available for sale, at fair value

   $ 471,721     $ 443,687     $ 391,028     $ 566,996     $ 366,910  

 

 

   

Unrealized Gain (Loss) on Investment Securities Available for Sale

  
   

September 30,

2017

    

June 30,

2017

    

March 31,

2017

    

December 31,

2016

    

September 30,

2016

  

U.S. Treasury securities

  $ -     $ -     $ -     $ 3     $ -  

Obligations of the U.S. Government and agencies

    (920 )     (699 )     (803 )     (913 )     946  

State & political subdivisions - tax-free

     23       11       (10 )     (96 )     131  

State & political subdivisions - taxable

     1       1       1       2       5  

Mortgage-backed securities

     869       480       196       (47 )     3,801  

Collateralized mortgage obligations

     (640 )     (662 )     (777 )     (794 )     253  

Other debt securities

     -       (1 )     (1 )     (1 )     -  

Bond mutual funds

     -       -       (36 )     (61 )     (109 )

Other investments

     230       203       132       13       34  

Total unrealized (losses) gains on investment securities available for sale

   $ (437 )   $ (667 )   $ (1,298 )   $ (1,894 )   $ 5,061  

 

 

   

Deposits

  
   

September 30,

2017

    

June 30,

2017

    

March 31,

2017

    

December 31,

2016

    

September 30,

2016

  

Interest-bearing deposits:

                                        

Interest-bearing checking

   $ 395,383     $ 381,345     $ 395,131     $ 379,424     $ 333,055  

Money market

     720,613       729,859       757,071       761,657       725,116  

Savings

     264,273       254,903       255,791       232,193       228,391  

Wholesale non-maturity deposits

     48,620       54,675       69,471       74,272       64,664  

Wholesale time deposits

     178,610       120,524       68,164       73,037       99,052  

Retail time deposits

    316,068       321,982       319,381       322,912       309,584  

Total interest-bearing deposits

     1,923,567       1,863,288       1,865,009       1,843,495       1,759,862  

Noninterest-bearing deposits

     760,614       818,475       771,556       736,180       718,015  

Total deposits

   $ 2,684,181     $ 2,681,763     $ 2,636,565     $ 2,579,675     $ 2,477,877  

 

 
 

 

Bryn Mawr Bank Corporation

Detailed Income Statements (unaudited)

(dollars in thousands, except per share data)

 

   

For the Three Months Ended

    

For the Nine Months Ended

  
   

September 30,

2017

    

June 30,

2017

    

March 31,

2017

    

December 31,

2016

    

September 30,

2016

    

September 30,

2017

    

September 30,

2016

  

Interest income:

                                                        

Interest and fees on loans and leases

   $ 30,892     $ 29,143     $ 28,482     $ 28,230     $ 27,931     $ 88,517     $ 82,306  

Interest on cash and cash equivalents

     36       35       66       53       27       137       115  

Interest on investment securities

     2,270       2,059       1,778       1,639       1,556       6,107       4,648  

Total interest income

     33,198       31,237       30,326       29,922       29,514       94,761       87,069  

Interest expense:

                                                        

Interest on deposits

     2,198       1,983       1,828       1,780       1,575       6,009       4,053  

Interest on short-term borrowings

     547       237       27       22       34       811       71  

Interest on FHLB advances and other borrowings

     645       682       698       760       818       2,025       2,593  

Interest on subordinated notes

     370       370       370       370       370       1,110       1,106  

Total interest expense

     3,760       3,272       2,923       2,932       2,797       9,955       7,823  

Net interest income

     29,438       27,965       27,403       26,990       26,717       84,806       79,246  

Provision for loan and lease losses (the "Provision")

     1,333       (83 )     291       1,059       1,412       1,541       3,267  

Net interest income after Provision

     28,105       28,048       27,112       25,931       25,305       83,265       75,979  

Noninterest income:

                                                        

Fees for wealth management services

    9,651       9,807       9,303       9,327       9,100       28,761       27,363  

Insurance revenue

     1,373       943       763       715       886       3,079       3,007  

Capital markets revenue

     843       953       -       -       -       1,796       -  

Service charges on deposits

     676       630       647       688       688       1,953       2,103  

Loan servicing and other fees

     548       519       503       411       497       1,570       1,528  

Net gain on sale of loans

     799       520       629       607       879       1,948       2,440  

Net gain (loss) on sale of investment securities available for sale

     72       -       1       9       (28 )     73       (86 )

Net (loss) gain on sale of other real estate owned

     -       (12 )     -       -       -       (12 )     (76 )

Dividends on FHLB and FRB stocks

     217       218       214       309       277       649       754  

Other operating income

     1,405       1,207       1,167       1,182       1,487       3,779       3,686  

Total noninterest income

     15,584       14,785       13,227       13,248       13,786       43,596       40,719  

Noninterest expense:

                                                        

Salaries and wages

    13,602       13,580       12,450       11,855       11,621       39,632       35,556  

Employee benefits

    2,631       2,475       2,559       2,207       2,420       7,665       7,341  

Loss on pension termination

     -       -       -       -       -       -       -  

Occupancy and bank premises

     2,485       2,247       2,526       2,407       2,349       7,258       7,204  

Branch lease termination expense

     -       -       -       -       -       -       -  

Furniture, fixtures and equipment

     1,726       1,869       1,974       1,869       1,837       5,569       5,651  

Advertising

     277       405       386       391       334       1,068       990  

Amortization of intangible assets

     677       687       693       830       888       2,057       2,668  

Impairment of intangible assets

     -       -       -       -       -       -       -  

Impairment (recovery) of mortgage servicing rights ("MSRs")

     3       43       3       (580 )     29       49       711  

Due diligence, merger-related and merger integration expenses

     850       1,236       511       -       -       2,597       -  

Professional fees

     739       1,049       711       963       937       2,499       2,696  

Pennsylvania bank shares tax

     317       297       664       (204 )     675       1,278       1,953  

Information technology

     880       821       874       857       881       2,575       2,804  

Other operating expenses

    3,997       3,786       3,309       4,492       3,400       11,092       9,012  

Total noninterest expense

     28,184       28,495       26,660       25,087       25,371       83,339       76,586  

Income before income taxes

     15,505       14,338       13,679       14,092       13,720       43,522       40,112  

Income tax expense

     4,766       4,905       4,635       4,684       4,346       14,306       13,484  

Net income

   $ 10,739     $ 9,433     $ 9,044     $ 9,408     $ 9,374     $ 29,216     $ 26,628  

Per share data:

                                                        

Weighted average shares outstanding

     17,023,046       16,984,563       16,954,132       16,916,705       16,860,727       16,987,499       16,840,457  

Dilutive common shares

     210,502       248,204       228,557       247,970       211,631       234,552       153,998  

Weighted average diluted shares

    17,233,548       17,232,767       17,182,689       17,164,675       17,072,358       17,222,051       16,994,455  

Basic earnings (loss) per common share

   $ 0.63     $ 0.56     $ 0.53     $ 0.56     $ 0.56     $ 1.72     $ 1.58  

Diluted earnings (loss) per common share

   $ 0.62     $ 0.55     $ 0.53     $ 0.55     $ 0.55     $ 1.70     $ 1.57  

Dividend declared per share

   $ 0.22     $ 0.21     $ 0.21     $ 0.21     $ 0.21     $ 0.64     $ 0.61  

Effective tax rate

     30.74 %     34.21 %     33.88 %     33.24 %     31.68 %     32.87 %     33.62 %

 

 
 

 

Bryn Mawr Bank Corporation

Tax-Equivalent Net Interest Margin (unaudited)

(dollars in thousands, except per share data)

 

   

For The Three Months Ended

      

For The Nine Months Ended

  
   

September 30, 2017

    

June 30, 2017

    

March 31, 2017

    

December 31, 2016

    

September 30, 2016

      

September 30, 2017

    

September 30, 2016

  

(dollars in thousands)

  

Average Balance

    

Interest Income/ Expense

    

Average Rates Earned/ Paid

    

Average Balance

    

Interest Income/ Expense

    

Average Rates Earned/ Paid

    

Average Balance

    

Interest Income/ Expense

    

Average Rates Earned/ Paid

    

Average Balance

    

Interest Income/ Expense

    

Average Rates Earned/ Paid

    

Average Balance

    

Interest Income/ Expense

    

Average Rates Earned/ Paid

      

Average Balance

    

Interest Income/ Expense

    

Average Rates Earned/ Paid

    

Average Balance

    

Interest Income/ Expense

    

Average Rates Earned/ Paid

  
                                                                                                                                                                           

Assets:

                                                                                                                                                                          

Interest-bearing deposits with other banks

   $ 26,628     $ 36       0.54 %   $ 26,266     $ 35       0.53 %   $ 39,669     $ 66       0.67 %   $ 55,298     $ 53       0.38 %   $ 33,532     $ 27       0.32 %     $ 30,807     $ 137       0.59 %   $ 39,157     $ 115       0.39 %

Investment securities - available for sale:

                                                                                                                                                                          

Taxable

     427,106       2,160       2.01 %     391,112       1,940       1.99 %     354,229       1,653       1.89 %     344,931       1,498       1.73 %     329,293       1,423       1.72 %       391,082       5,799       1.98 %     323,866       4,263       1.76 %

Tax-exempt

     25,268       134       2.10 %     28,970       150       2.08 %     31,485       164       2.11 %     34,985       175       1.99 %     37,893       189       1.98 %       28,552       448       2.10 %     39,243       567       1.93 %

Total investment securities - available for sale

    452,374       2,294       2.01 %     420,082       2,090       2.00 %     385,714       1,817       1.91 %     379,916       1,673       1.75 %     367,186       1,612       1.75 %       419,634       6,247       1.99 %     363,109       4,830       1.78 %
                                                                                                                                                                           

Investment securities - held to maturity

     6,044       11       0.72 %     5,181       5       0.39 %     3,702       7       0.77 %     2,889       7       0.96 %     2,907       6       0.82 %       4,984       4       0.11 %     1,782       4       0.30 %

Investment securities - trading

     4,282       8       0.74 %     4,137       13       1.26 %     3,890       8       0.83 %     3,853       16       1.65 %     3,523       2       0.23 %       4,105       2       0.07 %     3,703       2       0.07 %
                                                                                                                                                                           

Loans and leases *

     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 %     2,476,972       28,032       4.50 %       2,617,658       88,989       4.55 %     2,399,683       82,571       4.60 %
                                                                                                                                                                           

Total interest-earning assets

    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 %     2,884,120       29,679       4.09 %       3,077,188       95,379       4.14 %     2,807,434       87,522       4.16 %
                                                                                                                                                                           

Cash and due from banks

     15,709                       15,727                       14,942                       16,127                       16,228                         15,462                       16,380                  

Less: allowance for loan and lease losses

     (16,564 )                     (17,549 )                     (17,580 )                     (17,858 )                     (17,257 )                       (17,227 )                     (16,924 )                

Other assets

    273,116                       263,853                       258,046                       257,676                       258,928                         265,061                       261,752                  
                                                                                                                                                                           

Total assets

   $ 3,441,906                     $ 3,333,307                     $ 3,244,060                     $ 3,215,868                     $ 3,142,019                       $ 3,340,484                     $ 3,068,642                  
                                                                                                                                                                           

Liabilities:

                                                                                                                                                                          
                                                                                                                                                                           

Interest-bearing deposits:

                                                                                                                                                                          

Savings, NOW and market rate deposits

   $ 1,359,293     $ 823       0.24 %   $ 1,375,949     $ 813       0.24 %   $ 1,388,561     $ 756       0.22 %   $ 1,328,577     $ 686       0.21 %   $ 1,286,404     $ 641       0.20 %     $ 1,374,494     $ 2,392       0.23 %   $ 1,280,023     $ 1,799       0.19 %

Wholesale deposits

     190,849       548       1.14 %     154,424       378       0.98 %     143,461       317       0.90 %     156,541       319       0.81 %     164,706       327       0.79 %       163,086       1,243       1.02 %     166,136       921       0.74 %

Retail time deposits

    321,352       827       1.02 %     323,287       792       0.98 %     320,172       755       0.96 %     324,158       775       0.95 %     278,579       607       0.87 %       321,608       2,374       0.99 %     247,504       1,333       0.72 %

Total interest-bearing deposits

     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 %     1,729,689       1,575       0.36 %       1,859,188       6,009       0.43 %     1,693,663       4,053       0.32 %
                                                                                                                                                                           

Borrowings:

                                                                                                                                                                          

Short-term borrowings

     182,845       547       1.19 %     98,869       237       0.96 %     47,603       27       0.23 %     40,629       22       0.22 %     40,966       34       0.33 %       110,268       811       0.98 %     35,836       71       0.26 %

Long-term FHLB advances

     155,918       645       1.64 %     171,567       682       1.59 %     182,507       698       1.55 %     198,454       760       1.52 %     218,920       818       1.49 %       169,900       2,025       1.59 %     235,002       2,593       1.47 %

Subordinated notes

     29,564       370       4.97 %     29,550       370       5.02 %     29,537       370       5.08 %     29,523       370       4.99 %     29,509       370       4.99 %       29,550       1,110       5.02 %     29,496       1,106       5.01 %

Total borrowings

     368,327       1,562       1.68 %     299,986       1,289       1.72 %     259,647       1,095       1.71 %     268,606       1,152       1.71 %     289,395       1,222       1.68 %       309,718       3,946       1.70 %     300,334       3,770       1.68 %
                                                                                                                                                                           

Total interest-bearing liabilities

     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 %     2,019,084       2,797       0.55 %       2,168,906       9,955       0.61 %     1,993,997       7,823       0.52 %
                                                                                                                                                                           

Noninterest-bearing deposits

     764,562                       755,597                       711,794                       724,465                       716,581                         744,178                       674,601                  

Other liabilities

     40,166                       34,348                       38,211                       35,478                       33,400                         37,582                       33,375                  

Total noninterest-bearing liabilities

     804,728                       789,945                       750,005                       759,943                       749,981                         781,760                       707,976                  
                                                                                                                                                                           

Total liabilities

     3,044,549                       2,943,591                       2,861,846                       2,837,825                       2,769,065                         2,950,666                       2,701,973                  
                                                                                                                                                                           

Shareholders' equity

    397,357                       389,716                       382,214                       378,043                       372,954                         389,818                       366,669                  
                                                                                                                                                                           

Total liabilities and shareholders' equity

  $ 3,441,906                     $ 3,333,307                     $ 3,244,060                     $ 3,215,868                     $ 3,142,019                       $ 3,340,484                     $ 3,068,642                  
                                                                                                                                                                           

Net interest spread

                     3.51 %                     3.50 %                     3.58 %                     3.49 %                     3.54 %                       3.53 %                     3.64 %

Effect of noninterest-bearing sources

                     0.20 %                     0.18 %                     0.16 %                     0.16 %                     0.17 %                       0.18 %                     0.15 %
                                                                                                                                                                           

Tax-equivalent net interest margin

          $ 29,647       3.71 %           $ 28,180       3.68 %           $ 27,597       3.74 %           $ 27,171       3.65 %           $ 26,882       3.71 %             $ 85,424       3.71 %           $ 79,699       3.79 %
                                                                                                                                                                           

Tax-equivalent adjustment

          $ 209       0.03 %           $ 215       0.03 %           $ 194       0.02 %           $ 181       0.02 %           $ 165       0.02 %             $ 618       0.03 %           $ 453       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

     $ 708       0.10 %   $ 402       0.06 %   $ 726       0.12 %   $ 742       0.12 %   $ 578       0.09 %   $ 1,836       0.09 %   $ 2,607       0.15 %

Retail time deposits

       (15 )     -0.02 %     (18 )     -0.02 %     (19 )     -0.02 %     (19 )     -0.02 %     (29 )     -0.04 %     (52 )     -0.02 %     (200 )     -0.11 %

Short-term borrowings

       -       0.00 %     -       0.00 %     -       0.00 %     -       0.00 %     -       0.00 %     -       0.00 %     (12 )     -0.04 %

Long-term FHLB advances and other borrowings

       (30 )     -0.08 %     (30 )     -0.07 %     (30 )     -0.07 %     (30 )     -0.06 %     (30 )     -0.05 %     (91 )     -0.07 %     (90 )     -0.05 %

Net interest income from fair value marks

     $ 753             $ 450             $ 775             $ 791             $ 637             $ 1,979             $ 2,909          

Purchase accounting effect on tax-equivalent margin

               0.09 %             0.06 %             0.11 %             0.11 %             0.09 %             0.09 %             0.14 %

 

* 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 Nine Months Ended

  
   

September 30,

2017

    

June 30,

2017

    

March 31,

2017

    

December 31,

2016

    

September 30,

2016

    

September 30,

2017

    

September 30,

2016

  

Reconciliation of Net Income to Net Income (core):

                                                        

Net income (a GAAP measure)

   $ 10,739     $ 9,433     $ 9,044     $ 9,408     $ 9,374     $ 29,216     $ 26,628  

Less: Tax-effected non-core noninterest income:

                                                        

(Gain) loss on sale of investment securities available for sale

     (47 )     -       (1 )     (6 )     18       (47 )     56  

Add: Tax-effected non-core noninterest expense items:

                                                        

Loss on pension termination

     -       -       -       -       -       -       -  

Severance expense (Salaries and wages)

     -       -       -       -       -       -       -  

Branch lease termination expense

     -       -       -       -       -       -       -  

Debt and swap prepayment penalty (Other operating expenses)

     -       -       -       -       -       -       -  

Impairment of intangible assets

     -       -       -       -       -       -       -  

Due diligence, merger-related and merger integration expenses

     553       803       332       -       -       1,688       -  

Net income (core) (a non-GAAP measure)

   $ 11,245     $ 10,236     $ 9,375     $ 9,402     $ 9,392     $ 30,857     $ 26,684  
                                                         

Calculation of Basic and Diluted Earnings per Common Share (core):

                                                  

Weighted average common shares outstanding

     17,023,046       16,984,563       16,954,132       16,916,705       16,860,727       16,987,499       16,840,457  

Dilutive common shares

     210,502       248,204       228,557       247,970       211,631       234,552       153,998  

Weighted average diluted shares

    17,233,548       17,232,767       17,182,689       17,164,675       17,072,358       17,222,051       16,994,455  

Basic earnings per common share (core) (a non-GAAP measure)

   $ 0.66     $ 0.60     $ 0.55     $ 0.56     $ 0.56     $ 1.82     $ 1.58  

Diluted earnings per common share (core) (a non-GAAP measure)

   $ 0.65     $ 0.59     $ 0.55     $ 0.55     $ 0.55     $ 1.79     $ 1.57  
                                                         

Calculation of Return on Average Tangible Equity:

                                                        

Net income (loss)

   $ 10,739     $ 9,433     $ 9,044     $ 9,408     $ 9,374     $ 29,216     $ 26,628  

Add: Tax-effected amortization and impairment of intangible assets

     440       447       450       540       577       1,337       1,734  

Net tangible income (numerator)

   $ 11,179     $ 9,880     $ 9,494     $ 9,948     $ 9,951     $ 30,553     $ 28,362  
                                                         

Average shareholders' equity

   $ 397,357     $ 389,716     $ 382,214     $ 378,043     $ 372,954     $ 389,818     $ 366,669  

Less: Average goodwill and intangible assets

     (128,917 )     (126,537 )     (124,884 )     (125,614 )     (126,505 )     (126,794 )     (127,398 )

Net average tangible equity (denominator)

   $ 268,440     $ 263,179     $ 257,330     $ 252,429     $ 246,449     $ 263,024     $ 239,271  
                                                         

Return on tangible equity (a non-GAAP measure)

     16.52 %     15.06 %     14.96 %     15.68 %     16.06 %     15.53 %     15.83 %
                                                         

Calculation of Tangible Equity Ratio:

                                                        

Total shareholders' equity

   $ 401,892     $ 394,977     $ 388,095     $ 381,127     $ 378,459                  

Less: Goodwill and intangible assets

     (128,534 )     (129,211 )     (124,629 )     (125,170 )     (126,000 )                

Net tangible equity (numerator)

   $ 273,358     $ 265,766     $ 263,466     $ 255,957     $ 252,459                  
                                                         

Total assets

   $ 3,476,821     $ 3,438,219     $ 3,292,617     $ 3,421,530     $ 3,174,080                  

Less: Goodwill and intangible assets

     (128,534 )     (129,211 )     (124,629 )     (125,170 )     (126,000 )                

Tangible assets (denominator)

   $ 3,348,287     $ 3,309,008     $ 3,167,988     $ 3,296,360     $ 3,048,080                  
                                                         

Tangible equity ratio

     8.16 %     8.03 %     8.32 %     7.76 %     8.28 %                
                                                         

Calculation of Efficiency Ratio:

                                                        

Noninterest expense

   $ 28,184     $ 28,495     $ 26,660     $ 25,087     $ 25,371     $ 83,339     $ 76,787  

Less: certain noninterest expense items*:

                                                        

Loss on pension termination

     -       -       -       -       -       -       -  

Severance expense (Salaries and wages)

     -       -       -       -       -       -       -  

Branch lease termination expense

     -       -       -       -       -       -       -  

Debt and swap prepayment penalty (Other operating expenses)

     -       -       -       -       -       -       -  

Amortization of intangibles

     (677 )     (687 )     (693 )     (830 )     (888 )     (2,057 )     (2,668 )

Impairment of intangible assets

     -       -       -       -       -       -       -  

Due diligence, merger-related and merger integration expenses

     (850 )     (1,236 )     (511 )     -       -       (2,597 )     -  

Noninterest expense (adjusted) (numerator)

   $ 26,657     $ 26,572     $ 25,456     $ 24,257     $ 24,483     $ 78,685     $ 74,119  
                                                         

Noninterest income

   $ 15,584     $ 14,785     $ 13,227     $ 13,248     $ 13,786     $ 43,596     $ 40,920  

Less: non-core noninterest income items:

                                                        

Loss (gain) on sale of investment securities available for sale

     (72 )     -       (2 )     (9 )     28       (73 )     86  

Noninterest income (core)

   $ 15,512     $ 14,785     $ 13,225     $ 13,239     $ 13,814     $ 43,523     $ 41,006  

Net interest income

     29,438       27,965       27,403       26,990       26,717       84,806       79,246  

Noninterest income (core) and net interest income (denominator)

   $ 44,950     $ 42,750     $ 40,628     $ 40,229     $ 40,531     $ 128,329     $ 120,252  
                                                         

Efficiency ratio

     59.30 %     62.16 %     62.66 %     60.30 %     60.41 %     61.32 %     61.64 %

 

* 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

   $ 17,004     $ 16,399     $ 17,107     $ 17,486     $ 17,744    

Less: Allowance on acquired loans

     47       25       38       28       28    

Allowance on originated loans and leases

   $ 16,957     $ 16,374     $ 17,069     $ 17,458     $ 17,716    
                                           

Total Allowance

   $ 17,004     $ 16,399     $ 17,107     $ 17,486     $ 17,744    

Loan mark on acquired loans

     10,223       11,084       11,544       12,286       13,391    

Total Allowance + Loan mark

   $ 27,227     $ 27,483     $ 28,651     $ 29,772     $ 31,135    
                                           

Total Portfolio loans and leases

   $ 2,677,345     $ 2,666,651     $ 2,555,589     $ 2,535,425     $ 2,493,357    

Less: Originated loans and leases

     2,433,054       2,409,964       2,286,814       2,240,987       2,176,549    

Net acquired loans

   $ 244,291     $ 256,687     $ 268,775     $ 294,438     $ 316,808    

Add: Loan mark on acquired loans

     10,223       11,084       11,544       12,286       13,391    

Gross acquired loans (excludes loan mark)

   $ 254,514     $ 267,771     $ 280,319     $ 306,724     $ 330,199    

Originated loans and leases

     2,433,054       2,409,964       2,286,814       2,240,987       2,176,549    

Total Gross portfolio loans and leases

   $ 2,687,568     $ 2,677,735     $ 2,567,133     $ 2,547,711     $ 2,506,748