BRYN MAWR, Pa., April 20, 2017 (GLOBE NEWSWIRE) — Bryn Mawr Bank Corporation (NASDAQ:BMTC) (the “Corporation”), parent of The Bryn Mawr Trust Company (the “Bank”), today reported net income of $9.0 million and diluted earnings per share of $0.53 for the three months ended March 31, 2017, as compared to net income of $9.4 million, or $0.55 diluted earnings per share, for the three months ended December 31, 2016 and $8.3 million, or $0.49 diluted earnings per share, for the three months ended March 31, 2016.
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 $9.4 million, or $0.55 diluted earnings per share, for the three months ended March 31, 2017 as compared to $9.4 million, or $0.55 diluted earnings per share, for the three months ended December 31, 2016 and $8.3 million, or $0.49 diluted earnings per share, for the three months ended March 31, 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.
“With our merger preparation efforts in full swing, we are pleased to report another strong quarter,” commented Frank Leto, President and Chief Executive Officer, continuing, “The uptick in our net interest margin contributed to the increase in net interest income on both a linked quarter as well as a year-over-year basis. And while net loan growth for the first quarter was relatively flat, at $20.2 million, originations were consistent with prior quarters. Net paydowns totaled $106.7 million for the first quarter of 2017.”
Mr. Leto also stated, “In keeping with our strategy of selectively expanding our brand into new market areas, we recently announced two new initiatives: the anticipated opening of a new wealth office in Princeton, New Jersey and the expected acquisition of the Hirshorn Boothby insurance agency in the Chestnut Hill section of Philadelphia. These initiatives seek to leverage the branch network we’ll be acquiring in the contemplated Royal Bancshares acquisition, and will enable us to offer a full range of financial solutions to the residents and businesses in the surrounding areas.”
Each of the opening of the Princeton office and the acquisitions of Hirshorn Boothby and Royal Bancshares of Pennsylvania, Inc. (“Royal” or “Royal Bancshares”) is subject to applicable regulatory approvals, and the acquisitions are also subject to certain closing conditions.
On April 20, 2017, the Board of Directors of the Corporation declared a quarterly dividend of $0.21 per share, payable June 1, 2017 to shareholders of record as of May 2, 2017.
SIGNIFICANT ITEMS OF NOTE
Results of Operations – First Quarter 2017 Compared to Fourth Quarter 2016
- Net income for the three months ended March 31, 2017 was $9.0 million, as compared to $9.4 million for the three months ended December 31, 2016. Contributing to the decrease was a $511 thousand increase in merger expenses, a $763 thousand increase in salaries and wages related to annual merit increases, normalization of incentive compensation and staff additions, and a $583 thousand decrease in recoveries on mortgage servicing rights (“MSRs”). Partially offsetting these changes was an increase of $413 thousand in net interest income, a $768 thousand decrease in provision for loan and lease losses (the “Provision”) and a $1.2 million decrease in other operating expenses.
- Net interest income for the three months ended March 31, 2017 was $27.4 million, an increase of $413 thousand from $27.0 million for the three months ended December 31, 2016. Average interest-earning assets increased by $28.7 million, with average loans increasing $37.7 million and average interest-bearing deposits with banks decreasing $15.6 million. The yield earned on loans increased by 6 basis points.
- The tax-equivalent net interest margin of 3.74% for the first quarter of 2017 increased 9 basis points from 3.65% for the fourth quarter of 2016. The increase was largely the result of a 6 basis point increase in tax-equivalent yield earned on average loans, which totaled $2.56 billion for the three months ended March 31, 2017, and a 16 basis point increase in tax-equivalent yield on available for sale investment securities. The rate paid on interest-bearing liabilities remained unchanged on a linked-quarter basis. The impact of accretion of purchase accounting adjustments for the first quarter of 2017 and the fourth quarter of 2016 was the same, contributing 11 basis points to the margin in both periods.
- Non-interest income for the three months ended March 31, 2017 decreased by $21 thousand from the fourth quarter of 2016. Decreases of $41 thousand and $95 thousand in service charges on deposits and dividends on bank stocks, respectively, were partially offset by a $92 thousand increase in loan servicing and other fees and a $48 thousand increase in insurance revenues.
- Non-interest expense for the three months ended March 31, 2017 increased $1.6 million, to $26.7 million, as compared to $25.1 million for the fourth quarter of 2016. The increase was driven by the $511 thousand of merger-related expenses incurred as the Corporation prepares for the merger with Royal Bancshares, a $595 thousand increase in salaries and wages related to annual increases, normalization of incentive compensation and staff additions and a decrease in recoveries of MSR impairments, which were impacted positively in the fourth quarter of 2016 with the prospect of rising interest rates. Pennsylvania bank shares tax increased by $868 thousand, however this was offset with a corresponding decrease in contributions expense, which is reported as part of other operating expense.
- For the three months ended March 31, 2017, net loan and lease charge-offs totaled $670 thousand, as compared to $1.3 million for the fourth quarter of 2016. The Provision for the three months ended March 31, 2017 was $291 thousand, a decrease of $768 thousand from the fourth quarter of 2016. The decrease in the Provision was the result of lower net charge-offs and improving credit quality metrics which factor into the calculation of the overall allowance for loan and lease losses (the “Allowance”) requirement.
- Income tax expense for the first quarter of 2017 decreased by $49 thousand as compared to the fourth quarter of 2016. The increase in the effective tax rate from the fourth quarter of 2016 to the first quarter of 2017 was primarily the result of certain non-deductible merger expenses incurred in the first quarter of 2017.
Results of Operations – First Quarter 2017 Compared to First Quarter 2016
- Net income for the three months ended March 31, 2017 was $9.0 million, or $0.53 diluted earnings per share, as compared to $8.3 million, or diluted earnings per share of $0.49 for the same period in 2016. Contributing to the increase in net income were increases of $1.5 million in net interest income and $471 thousand in fees for wealth management services and decreases of $1.1 million in Provision, $198 thousand in amortization of intangible assets and $174 thousand in information technology expenses. Partially offsetting these changes were decreases of $513 thousand in insurance revenues and $76 thousand in gain on sale of mortgage loans, along with increases of $712 thousand in salaries and wages and $511 thousand in merger expenses.
- Net interest income for the three months ended March 31, 2017 was $27.4 million, an increase of $1.5 million, or 5.8%, from $25.9 million for the same period in 2016. The increase in net interest income was primarily related to the growth in average loan balances between the periods. Average loans and leases for the three months ended March 31, 2017 increased by $247.1 million from the same period in 2016. The increase in average loan balances was offset by a 13 basis point decrease in tax-equivalent yield earned on loans and leases. The net effect of the yield decrease and volume increase on average loans and leases was a $1.8 million increase in tax-equivalent interest income on loans. Partially offsetting the increase in average loans was a $218.5 million increase in average interest-bearing deposits accompanied by a 14 basis point increase in rate paid on deposits.
- The tax-equivalent net interest margin of 3.74% for the three months ended March 31, 2017 was a 13 basis point decrease from 3.87% for the same period in 2016. The primary reason for the decline in the margin was the 13 basis point decrease in tax-equivalent yield earned on loans and the 14 basis point increase in rate paid on deposits. The impact of accretion of purchase accounting adjustments for the first quarter of 2017 added 11 basis points to the tax-equivalent net interest margin, while the first quarter of 2016 saw a 16 basis point increase from this accretion.
- Non-interest income for the three months ended March 31, 2017 increased by $74 thousand from the same period in 2016. A $144 thousand increase in other operating income and a $471 thousand increase in fees for wealth management services, as wealth assets have increased 26.3% from the March 31, 2016 level, were partially offset by a decrease of $76 thousand in gain on sale of residential mortgage loans, as market interest rate increases reduced origination activity, and a $513 thousand decrease in insurance revenues related to the recognition of contingent commissions from providers during the first quarter of 2016, which are being ratably recognized in 2017.
- Non-interest expense for the three months ended March 31, 2017 increased $1.7 million from the same period in 2016, primarily related to salary and wage increases of $712 thousand due to staffing increases, annual salary and wage increases and increases in incentive compensation, a $511 thousand increase in merger expenses in connection with the merger with Royal, and a $700 thousand increase in other operating expenses, largely related to deferred compensation expense associated with the valuation of Corporation stock held in the deferred compensation trusts.
- The Provision for the three months ended March 31, 2017 of $291 thousand was a $1.1 million decrease from the same period in 2016. Net charge-offs for the first quarter of 2017 were $670 thousand as compared to $422 thousand for the same period in 2016. The decrease in Provision is indicative of improvements in certain qualitative factors used to determine the Allowance.
Financial Condition – March 31, 2017 Compared to December 31, 2016
- Total portfolio loans and leases of $2.56 billion as of March 31, 2017, increased by $20.2 million from December 31, 2016. Loan growth was concentrated in the commercial mortgage segment which grew by $27.0 million and was partially offset by an $11.8 million decrease in commercial and industrial loans.
- The Allowance as of March 31, 2017 was $17.1 million, or 0.67% 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 0.75% as of March 31, 2017, as compared to 0.78% as of December 31, 2016, and the Allowance plus the remaining loan mark as a percentage of gross loans, which was 1.12% as of March 31, 2017, as compared to 1.17% as of December 31, 2016. A reconciliation of these and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release.
- Available for sale investment securities as of March 31, 2017 were $391.0 million, a decrease of $176.0 million from December 31, 2016. The primary contributor to the decrease in the portfolio was the maturing, during January 2017, of $200 million of short-term U.S. Treasury bills.
- Total assets as of March 31, 2017 were $3.29 billion, a decrease of $128.9 million from December 31, 2016. Increases in cash and cash equivalents and portfolio loans partially offset the decrease in available for sale investment securities discussed in the previous bullet point.
- Wealth assets under management, administration, supervision and brokerage totaled $11.73 billion as of March 31, 2017, an increase of $397.0 million from December 31, 2016.
- Deposits of $2.64 billion as of March 31, 2017 increased $56.9 million from December 31, 2016. Noninterest-bearing deposits increased by $35.4 million, while interest-bearing accounts increased by $21.5 million.
- Borrowings of $198.3 million as of March 31, 2017 was a $195.6 million decrease from December 31, 2016. The decrease was largely comprised of short-term borrowings which were repaid at the beginning of January 2017 in connection with the maturing of $200 million of short-term U.S. Treasury bills.
- The capital ratios for the Bank and the Corporation, as of March 31, 2017, as shown in the attached tables, indicate levels well above the regulatory minimum to be considered “well capitalized.” At the Bank level, all capital ratios have increased slightly from their December 31, 2016 levels due to the effect of an increase in retained earnings and a decrease in other comprehensive loss partially offset by an increase in risk-weighted assets. At the Corporation level, Tier 1 and Total (Tier 1 & 2) capital to risk weighted assets declined by 1 and 5 basis points, respectively, related to an increase in risk-weighted assets and the decrease in retained earnings associated with the dividend payment during the first quarter of 2017 which totaled $3.6 million.
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 and Hirshorn Boothby acquisitions and the opening of the Princeton office, that the integration of acquired businesses with the Corporation’s 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, 2017 | December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 | |||||||||||||||||
| Consolidated Balance Sheet (selected items) | |||||||||||||||||||||
| Interest-bearing deposits with banks | $ | 69,978 | $ | 34,206 | $ | 30,118 | $ | 20,481 | $ | 33,954 | |||||||||||
| Investment securities (AFS, HTM and Trading) | 400,360 | 573,763 | 373,508 | 371,906 | 369,461 | ||||||||||||||||
| Loans held for sale | 3,015 | 9,621 | 11,506 | 11,882 | 7,807 | ||||||||||||||||
| Portfolio loans and leases | 2,555,589 | 2,535,425 | 2,493,357 | 2,423,821 | 2,378,841 | ||||||||||||||||
| Allowance for loan and lease losses (“ALLL”) | (17,107 | ) | (17,486 | ) | (17,744 | ) | (17,036 | ) | (16,845 | ) | |||||||||||
| Goodwill and other intangible assets | 124,629 | 125,170 | 126,000 | 126,888 | 127,777 | ||||||||||||||||
| Total assets | 3,292,617 | 3,421,530 | 3,174,080 | 3,090,090 | 3,058,247 | ||||||||||||||||
| Deposits – interest-bearing | 1,865,009 | 1,843,495 | 1,759,862 | 1,720,477 | 1,700,550 | ||||||||||||||||
| Deposits – non-interest-bearing | 771,556 | 736,180 | 718,015 | 689,214 | 643,492 | ||||||||||||||||
| Short-term borrowings | 23,613 | 204,151 | 50,065 | 19,119 | 37,010 | ||||||||||||||||
| Long-term FHLB advances and other borrowings | 174,711 | 189,742 | 204,772 | 224,802 | 249,832 | ||||||||||||||||
| Subordinated notes | 29,546 | 29,532 | 29,518 | 29,505 | 29,491 | ||||||||||||||||
| Total liabilities | 2,904,522 | 3,040,403 | 2,795,621 | 2,717,623 | 2,693,070 | ||||||||||||||||
| Shareholders’ equity | 388,095 | 381,127 | 378,459 | 372,467 | 365,177 | ||||||||||||||||
| Average Balance Sheet (selected items) | |||||||||||||||||||||
| Interest-bearing deposits with banks | $ | 39,669 | $ | 55,298 | $ | 33,532 | $ | 44,950 | $ | 39,050 | |||||||||||
| Investment securities (AFS, HTM and Trading) | 393,306 | 386,658 | 373,616 | 371,153 | 360,957 | ||||||||||||||||
| Loans held for sale | 4,238 | 11,591 | 12,887 | 7,844 | 5,481 | ||||||||||||||||
| Portfolio loans and leases | 2,551,439 | 2,506,376 | 2,464,085 | 2,404,799 | 2,303,103 | ||||||||||||||||
| Total interest-earning assets | 2,988,652 | 2,959,923 | 2,884,120 | 2,828,746 | 2,708,591 | ||||||||||||||||
| Goodwill and intangible assets | 124,884 | 125,614 | 126,505 | 127,402 | 128,296 | ||||||||||||||||
| Total assets | 3,244,060 | 3,215,868 | 3,142,019 | 3,089,953 | 2,973,148 | ||||||||||||||||
| Deposits – interest-bearing | 1,852,194 | 1,809,276 | 1,729,689 | 1,717,252 | 1,633,651 | ||||||||||||||||
| Short-term borrowings | 47,603 | 40,629 | 40,966 | 32,328 | 34,158 | ||||||||||||||||
| Long-term FHLB advances and other borrowings | 182,507 | 198,454 | 218,920 | 236,248 | 250,015 | ||||||||||||||||
| Subordinated notes | 29,537 | 29,523 | 29,509 | 29,496 | 29,482 | ||||||||||||||||
| Total interest-bearing liabilities | 2,111,841 | 2,077,882 | 2,019,084 | 2,015,324 | 1,947,306 | ||||||||||||||||
| Total liabilities | 2,861,846 | 2,837,825 | 2,769,065 | 2,723,838 | 2,612,276 | ||||||||||||||||
| Shareholders’ equity | 382,214 | 378,043 | 372,954 | 366,115 | 360,872 | ||||||||||||||||
| Income Statement | |||||||||||||||||||||
| Net interest income | $ | 27,403 | $ | 26,990 | $ | 26,717 | $ | 26,627 | $ | 25,902 | |||||||||||
| Provision for loan and lease losses | 291 | 1,059 | 1,412 | 445 | 1,410 | ||||||||||||||||
| Noninterest income | 13,227 | 13,248 | 13,786 | 13,781 | 13,153 | ||||||||||||||||
| Noninterest expense | 26,660 | 25,087 | 25,371 | 26,220 | 24,996 | ||||||||||||||||
| Income tax expense (benefit) | 4,635 | 4,684 | 4,346 | 4,810 | 4,328 | ||||||||||||||||
| Net income | 9,044 | 9,408 | 9,374 | 8,933 | 8,321 | ||||||||||||||||
| Basic earnings per share | 0.53 | 0.56 | 0.56 | 0.53 | 0.49 | ||||||||||||||||
| Diluted earnings per share | 0.53 | 0.55 | 0.55 | 0.52 | 0.49 | ||||||||||||||||
| Net income (core) (1) | 9,375 | 9,402 | 9,392 | 8,961 | 8,331 | ||||||||||||||||
| Basic earnings per share (core) (1) | 0.55 | 0.56 | 0.56 | 0.53 | 0.49 | ||||||||||||||||
| Diluted earnings per share (core) (1) | 0.55 | 0.55 | 0.55 | 0.53 | 0.49 | ||||||||||||||||
| Cash dividends paid per share | 0.21 | 0.21 | 0.21 | 0.20 | 0.20 | ||||||||||||||||
| Profitability Indicators | |||||||||||||||||||||
| Return on average assets | 1.13 | % | 1.16 | % | 1.19 | % | 1.16 | % | 1.13 | % | |||||||||||
| Return on average equity | 9.60 | % | 9.90 | % | 10.00 | % | 9.81 | % | 9.27 | % | |||||||||||
| Return on tangible equity(1) | 14.96 | % | 15.68 | % | 16.06 | % | 16.02 | % | 15.39 | % | |||||||||||
| Tax-equivalent net interest margin | 3.74 | % | 3.65 | % | 3.71 | % | 3.81 | % | 3.87 | % | |||||||||||
| Efficiency ratio(1) | 62.66 | % | 60.30 | % | 60.41 | % | 62.62 | % | 61.70 | % | |||||||||||
| Mortgage Banking Information | |||||||||||||||||||||
| Mortgage loans originated | $ | 48,550 | $ | 78,749 | $ | 84,885 | $ | 64,893 | $ | 51,532 | |||||||||||
| Residential mortgage loans sold – servicing retained | 27,690 | 44,763 | 40,462 | 26,944 | 25,965 | ||||||||||||||||
| Residential mortgage loans sold – servicing released | 4,981 | 4,632 | 10,522 | 5,278 | 2,397 | ||||||||||||||||
| Total residential mortgage loans sold | $ | 32,671 | $ | 49,395 | $ | 50,984 | $ | 32,222 | $ | 28,362 | |||||||||||
| Residential mortgage loans serviced for others | $ | 638,553 | $ | 631,889 | $ | 618,134 | $ | 610,418 | $ | 605,366 | |||||||||||
| Share Data | |||||||||||||||||||||
| Closing share price | $ | 39.50 | $ | 42.15 | $ | 31.99 | $ | 29.20 | $ | 25.73 | |||||||||||
| Book value per common share | $ | 22.87 | $ | 22.50 | $ | 22.40 | $ | 22.14 | $ | 21.73 | |||||||||||
| Tangible book value per common share | $ | 15.53 | $ | 15.11 | $ | 14.94 | $ | 14.60 | $ | 14.13 | |||||||||||
| Price / book value | 172.71 | % | 187.34 | % | 142.80 | % | 131.90 | % | 118.38 | % | |||||||||||
| Price / tangible book value | 254.41 | % | 278.96 | % | 214.07 | % | 200.05 | % | 182.10 | % | |||||||||||
| Weighted average diluted shares outstanding | 17,182,689 | 17,164,675 | 17,072,358 | 17,027,419 | 16,883,364 | ||||||||||||||||
| Shares outstanding, end of period | 16,969,451 | 16,939,715 | 16,893,878 | 16,824,564 | 16,801,801 | ||||||||||||||||
| Wealth Management Information: | |||||||||||||||||||||
| Wealth assets under mgmt, administration, supervision and brokerage (2) | $ | 11,725,460 | $ | 11,328,457 | $ | 9,969,745 | $ | 9,632,521 | $ | 9,281,743 | |||||||||||
| Fees for wealth management services | $ | 9,303 | $ | 9,327 | $ | 9,100 | $ | 9,431 | $ | 8,832 | |||||||||||
| Capital Ratios | |||||||||||||||||||||
| Bryn Mawr Trust Company | |||||||||||||||||||||
| Tier I capital to risk weighted assets (“RWA”) | 10.58 | % | 10.50 | % | 10.99 | % | 10.94 | % | 10.69 | % | |||||||||||
| Total (Tier II) capital to RWA | 11.25 | % | 11.19 | % | 11.70 | % | 11.65 | % | 11.39 | % | |||||||||||
| Tier I leverage ratio | 8.83 | % | 8.73 | % | 9.17 | % | 9.06 | % | 9.15 | % | |||||||||||
| Tangible equity ratio (1) | 8.46 | % | 7.85 | % | 8.85 | % | 8.79 | % | 8.53 | % | |||||||||||
| Common equity Tier I capital to RWA | 10.58 | % | 10.50 | % | 10.99 | % | 10.94 | % | 10.69 | % | |||||||||||
| Bryn Mawr Bank Corporation | |||||||||||||||||||||
| Tier I capital to RWA | 10.50 | % | 10.51 | % | 10.42 | % | 10.45 | % | 10.22 | % | |||||||||||
| Total (Tier II) capital to RWA | 12.30 | % | 12.35 | % | 12.30 | % | 12.35 | % | 12.13 | % | |||||||||||
| Tier I leverage ratio | 8.77 | % | 8.73 | % | 8.70 | % | 8.65 | % | 8.76 | % | |||||||||||
| Tangible equity ratio (1) | 8.32 | % | 7.76 | % | 8.28 | % | 8.29 | % | 8.10 | % | |||||||||||
| Common equity Tier I capital to RWA | 10.50 | % | 10.51 | % | 10.42 | % | 10.45 | % | 10.22 | % | |||||||||||
| Asset Quality Indicators | |||||||||||||||||||||
| Net loan and lease charge-offs (“NCO”s) | $ | 670 | $ | 1,317 | $ | 704 | $ | 254 | $ | 422 | |||||||||||
| Nonperforming loans and leases (“NPL”s) | $ | 7,329 | $ | 8,363 | $ | 9,883 | $ | 9,617 | $ | 9,636 | |||||||||||
| Other real estate owned (“OREO”) | 978 | 1,017 | 867 | 784 | 756 | ||||||||||||||||
| Total nonperforming assets (“NPA”s) | $ | 8,307 | $ | 9,380 | $ | 10,750 | $ | 10,401 | $ | 10,392 | |||||||||||
| Nonperforming loans and leases 30 or more days past due | $ | 5,097 | $ | 6,072 | $ | 6,684 | $ | 5,599 | $ | 6,193 | |||||||||||
| Performing loans and leases 30 to 89 days past due | 6,077 | 3,062 | 2,537 | 3,564 | 6,296 | ||||||||||||||||
| Performing loans and leases 90 or more days past due | – | – | – | – | – | ||||||||||||||||
| Total delinquent loans and leases | $ | 11,174 | $ | 9,134 | $ | 9,221 | $ | 9,163 | $ | 12,489 | |||||||||||
| Delinquent loans and leases to total loans and leases | 0.44 | % | 0.36 | % | 0.37 | % | 0.38 | % | 0.52 | % | |||||||||||
| Delinquent performing loans and leases to total loans and leases | 0.24 | % | 0.12 | % | 0.10 | % | 0.15 | % | 0.26 | % | |||||||||||
| NCOs / average loans and leases (annualized) | 0.11 | % | 0.21 | % | 0.11 | % | 0.04 | % | 0.07 | % | |||||||||||
| NPLs / total portfolio loans and leases | 0.29 | % | 0.33 | % | 0.40 | % | 0.40 | % | 0.41 | % | |||||||||||
| NPAs / total loans and leases and OREO | 0.32 | % | 0.37 | % | 0.43 | % | 0.43 | % | 0.44 | % | |||||||||||
| NPAs / total assets | 0.25 | % | 0.27 | % | 0.34 | % | 0.34 | % | 0.34 | % | |||||||||||
| ALLL / NPLs | 233.42 | % | 209.09 | % | 179.54 | % | 177.14 | % | 174.81 | % | |||||||||||
| ALLL / portfolio loans | 0.67 | % | 0.69 | % | 0.71 | % | 0.70 | % | 0.71 | % | |||||||||||
| ALLL on originated loans and leases / Originated loans and leases (1) | 0.75 | % | 0.78 | % | 0.81 | % | 0.81 | % | 0.83 | % | |||||||||||
| (Total Allowance + Loan mark) / Total Gross portfolio loans and leases (1) | 1.12 | % | 1.17 | % | 1.24 | % | 1.30 | % | 1.37 | % | |||||||||||
| Troubled debt restructurings (“TDR”s) included in NPLs | $ | 2,681 | $ | 2,632 | $ | 1,680 | $ | 1,779 | $ | 1,756 | |||||||||||
| TDRs in compliance with modified terms | 6,492 | 6,395 | 6,305 | 4,984 | 4,893 | ||||||||||||||||
| Total TDRs | $ | 9,173 | $ | 9,027 | $ | 7,985 | $ | 6,763 | $ | 6,649 | |||||||||||
| (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) | |||||||||||||||||||||||
| March 31, 2017 | December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 | |||||||||||||||||||
| Assets | |||||||||||||||||||||||
| Cash and due from banks | $ | 17,457 | $ | 16,559 | $ | 18,905 | $ | 13,710 | $ | 15,594 | |||||||||||||
| Interest-bearing deposits with banks | 69,978 | 34,206 | 30,118 | 20,481 | 33,954 | ||||||||||||||||||
| Cash and cash equivalents | 87,435 | 50,765 | 49,023 | 34,191 | 49,548 | ||||||||||||||||||
| Investment securities, available for sale | 391,028 | 566,996 | 366,910 | 365,470 | 365,819 | ||||||||||||||||||
| Investment securities, held to maturity | 5,194 | 2,879 | 2,896 | 2,915 | – | ||||||||||||||||||
| Investment securities, trading | 4,138 | 3,888 | 3,702 | 3,521 | 3,642 | ||||||||||||||||||
| Loans held for sale | 3,015 | 9,621 | 11,506 | 11,882 | 7,807 | ||||||||||||||||||
| Portfolio loans and leases, originated | 2,286,814 | 2,240,987 | 2,176,549 | 2,090,070 | 2,015,683 | ||||||||||||||||||
| Portfolio loans and leases, acquired | 268,775 | 294,438 | 316,808 | 333,751 | 363,158 | ||||||||||||||||||
| Total portfolio loans and leases | 2,555,589 | 2,535,425 | 2,493,357 | 2,423,821 | 2,378,841 | ||||||||||||||||||
| Less: Allowance for losses on originated loan and leases | (17,069 | ) | (17,458 | ) | (17,716 | ) | (17,008 | ) | (16,817 | ) | |||||||||||||
| Less: Allowance for losses on acquired loan and leases | (38 | ) | (28 | ) | (28 | ) | (28 | ) | (28 | ) | |||||||||||||
| Total allowance for loan and lease losses | (17,107 | ) | (17,486 | ) | (17,744 | ) | (17,036 | ) | (16,845 | ) | |||||||||||||
| Net portfolio loans and leases | 2,538,482 | 2,517,939 | 2,475,613 | 2,406,785 | 2,361,996 | ||||||||||||||||||
| Premises and equipment | 40,515 | 41,778 | 42,559 | 43,607 | 44,712 | ||||||||||||||||||
| Accrued interest receivable | 8,392 | 8,533 | 8,066 | 8,144 | 8,205 | ||||||||||||||||||
| Mortgage servicing rights | 5,686 | 5,582 | 4,793 | 4,646 | 5,182 | ||||||||||||||||||
| Bank owned life insurance | 39,479 | 39,279 | 39,055 | 38,836 | 38,616 | ||||||||||||||||||
| Federal Home Loan Bank (“FHLB”) stock | 8,505 | 17,305 | 13,185 | 10,618 | 12,142 | ||||||||||||||||||
| Goodwill | 104,765 | 104,765 | 104,765 | 104,765 | 104,765 | ||||||||||||||||||
| Intangible assets | 19,864 | 20,405 | 21,235 | 22,123 | 23,012 | ||||||||||||||||||
| Other investments | 8,716 | 8,627 | 9,121 | 8,722 | 8,487 | ||||||||||||||||||
| Other assets | 27,403 | 23,168 | 21,651 | 23,865 | 24,314 | ||||||||||||||||||
| Total assets | $ | 3,292,617 | $ | 3,421,530 | $ | 3,174,080 | $ | 3,090,090 | $ | 3,058,247 | |||||||||||||
| Liabilities | |||||||||||||||||||||||
| Deposits | |||||||||||||||||||||||
| Noninterest-bearing | $ | 771,556 | $ | 736,180 | $ | 718,015 | $ | 689,214 | $ | 643,492 | |||||||||||||
| Interest-bearing | 1,865,009 | 1,843,495 | 1,759,862 | 1,720,477 | 1,700,550 | ||||||||||||||||||
| Total deposits | 2,636,565 | 2,579,675 | 2,477,877 | 2,409,691 | 2,344,042 | ||||||||||||||||||
| Short-term borrowings | 23,613 | 204,151 | 50,065 | 19,119 | 37,010 | ||||||||||||||||||
| Long-term FHLB advances and other borrowings | 174,711 | 189,742 | 204,772 | 224,802 | 249,832 | ||||||||||||||||||
| Subordinated notes | 29,546 | 29,532 | 29,518 | 29,505 | 29,491 | ||||||||||||||||||
| Accrued interest payable | 2,722 | 2,734 | 1,854 | 1,846 | 1,294 | ||||||||||||||||||
| Other liabilities | 37,365 | 34,569 | 31,535 | 32,660 | 31,401 | ||||||||||||||||||
| Total liabilities | 2,904,522 | 3,040,403 | 2,795,621 | 2,717,623 | 2,693,070 | ||||||||||||||||||
| Shareholders’ equity | |||||||||||||||||||||||
| Common stock | 21,141 | 21,111 | 21,064 | 20,972 | 20,949 | ||||||||||||||||||
| Paid-in capital in excess of par value | 233,910 | 232,806 | 231,398 | 230,298 | 229,432 | ||||||||||||||||||
| Less: common stock held in treasury, at cost | (66,969 | ) | (66,950 | ) | (66,895 | ) | (66,200 | ) | (66,140 | ) | |||||||||||||
| Accumulated other comprehensive income (loss), net of tax | (1,990 | ) | (2,409 | ) | 2,128 | 2,488 | 1,502 | ||||||||||||||||
| Retained earnings | 202,003 | 196,569 | 190,764 | 184,909 | 179,434 | ||||||||||||||||||
| Total shareholders equity | 388,095 | 381,127 | 378,459 | 372,467 | 365,177 | ||||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 3,292,617 | $ | 3,421,530 | $ | 3,174,080 | $ | 3,090,090 | $ | 3,058,247 | |||||||||||||
| Bryn Mawr Bank Corporation | |||||||||||||||||||||||
| Supplemental Balance Sheet Information (unaudited) | |||||||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||||||
| Portfolio Loans and Leases as of | |||||||||||||||||||||||
| March 31, 2017 | December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 | |||||||||||||||||||
| Commercial mortgages | $ | 1,137,870 | $ | 1,110,897 | $ | 1,089,621 | $ | 1,055,934 | $ | 1,044,415 | |||||||||||||
| Home equity loans and lines | 203,962 | 208,000 | 206,578 | 202,989 | 205,896 | ||||||||||||||||||
| Residential mortgages | 418,264 | 413,540 | 418,408 | 414,863 | 412,006 | ||||||||||||||||||
| Construction | 145,699 | 141,964 | 133,269 | 133,313 | 119,193 | ||||||||||||||||||
| Total real estate loans | 1,905,795 | 1,874,401 | 1,847,876 | 1,807,099 | 1,781,510 | ||||||||||||||||||
| Commercial & Industrial | 567,917 | 579,791 | 565,497 | 538,684 | 523,053 | ||||||||||||||||||
| Consumer | 23,932 | 25,341 | 23,717 | 21,561 | 21,427 | ||||||||||||||||||
| Leases | 57,945 | 55,892 | 56,267 | 56,477 | 52,851 | ||||||||||||||||||
| Total non-real estate loans and leases | 649,794 | 661,024 | 645,481 | 616,722 | 597,331 | ||||||||||||||||||
| Total portfolio loans and leases | $ | 2,555,589 | $ | 2,535,425 | $ | 2,493,357 | $ | 2,423,821 | $ | 2,378,841 | |||||||||||||
| Nonperforming Loans and Leases as of | |||||||||||||||||||||||
| March 31, 2017 | December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 | |||||||||||||||||||
| Commercial mortgages | $ | 315 | $ | 320 | $ | 139 | $ | 139 | $ | 872 | |||||||||||||
| Home equity loans and lines | 1,828 | 2,289 | 2,827 | 3,011 | 1,953 | ||||||||||||||||||
| Residential mortgages | 2,640 | 2,658 | 2,845 | 2,909 | 2,923 | ||||||||||||||||||
| Construction | – | – | – | – | 12 | ||||||||||||||||||
| Total nonperforming real estate loans | 4,783 | 5,267 | 5,811 | 6,059 | 5,760 | ||||||||||||||||||
| Commercial & Industrial | 2,471 | 2,957 | 3,960 | 3,457 | 3,822 | ||||||||||||||||||
| Consumer | – | 2 | 2 | 4 | – | ||||||||||||||||||
| Leases | 75 | 137 | 110 | 97 | 54 | ||||||||||||||||||
| Total nonperforming non-real estate loans and leases | 2,546 | 3,096 | 4,072 | 3,558 | 3,876 | ||||||||||||||||||
| Total nonperforming portfolio loans and leases | $ | 7,329 | $ | 8,363 | $ | 9,883 | $ | 9,617 | $ | 9,636 | |||||||||||||
| Net Loan and Lease Charge-Offs (Recoveries) for the Three Months Ended | |||||||||||||||||||||||
| March 31, 2017 | December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 | |||||||||||||||||||
| Commercial mortgage | $ | (3 | ) | $ | (51 | ) | $ | (4 | ) | $ | (3 | ) | $ | 107 | |||||||||
| Home equity loans and lines | 438 | 69 | 375 | 11 | 71 | ||||||||||||||||||
| Residential | 27 | 28 | 2 | 262 | (35 | ) | |||||||||||||||||
| Construction | (1 | ) | (1 | ) | – | (62 | ) | – | |||||||||||||||
| Total net charge-offs (recoveries) of real estate loans | 461 | 45 | 373 | 208 | 143 | ||||||||||||||||||
| Commercial & Industrial | 59 | 1,128 | 95 | (44 | ) | 25 | |||||||||||||||||
| Consumer | 39 | 42 | 58 | 30 | 20 | ||||||||||||||||||
| Leases | 111 | 102 | 178 | 60 | 234 | ||||||||||||||||||
| Total net charge-offs of non-real estate loans and leases | 209 | 1,272 | 331 | 46 | 279 | ||||||||||||||||||
| Total net charge-offs | $ | 670 | $ | 1,317 | $ | 704 | $ | 254 | $ | 422 | |||||||||||||
| Bryn Mawr Bank Corporation | ||||||||||||||||||||||
| Supplemental Balance Sheet Information (unaudited) | ||||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||
| Investment Securities Available for Sale, at Fair Value | ||||||||||||||||||||||
| March 31, 2017 | December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 | ||||||||||||||||||
| U.S. Treasury securities | $ | 100 | $ | 200,097 | $ | 101 | $ | 102 | $ | 102 | ||||||||||||
| Obligations of the U.S. Government and agencies | 100,476 | 82,198 | 76,598 | 86,134 | 96,080 | |||||||||||||||||
| State & political subdivisions – tax-free | 30,416 | 33,005 | 36,735 | 39,047 | 39,502 | |||||||||||||||||
| State & political subdivisions – taxable | 524 | 525 | 529 | 532 | 1,093 | |||||||||||||||||
| Mortgage-backed securities | 197,420 | 185,951 | 184,919 | 186,354 | 183,127 | |||||||||||||||||
| Collateralized mortgage obligations | 45,476 | 48,694 | 51,344 | 36,702 | 29,106 | |||||||||||||||||
| Other debt securities | 1,299 | 1,299 | 1,450 | 1,450 | 1,700 | |||||||||||||||||
| Bond mutual funds | 11,920 | 11,895 | 11,847 | 11,774 | 11,725 | |||||||||||||||||
| Other investments | 3,397 | 3,332 | 3,387 | 3,375 | 3,384 | |||||||||||||||||
| Total | $ | 391,028 | $ | 566,996 | $ | 366,910 | $ | 365,470 | $ | 365,819 | ||||||||||||
| Unrealized Gain (Loss) on Investment Securities Available for Sale | ||||||||||||||||||||||
| March 31, 2017 | December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 | ||||||||||||||||||
| U.S. Treasury securities | $ | – | $ | 3 | $ | – | $ | 1 | $ | 1 | ||||||||||||
| Obligations of the U.S. Government and agencies | (803 | ) | (913 | ) | 946 | 1,183 | 984 | |||||||||||||||
| State & political subdivisions – tax-free | (10 | ) | (96 | ) | 131 | 240 | 173 | |||||||||||||||
| State & political subdivisions – taxable | 1 | 2 | 5 | 8 | 18 | |||||||||||||||||
| Mortgage-backed securities | 196 | (47 | ) | 3,801 | 3,958 | 3,026 | ||||||||||||||||
| Collateralized mortgage obligations | (777 | ) | (794 | ) | 253 | 496 | 330 | |||||||||||||||
| Other debt securities | (1 | ) | (1 | ) | – | – | – | |||||||||||||||
| Bond mutual funds | (36 | ) | (61 | ) | (109 | ) | (182 | ) | (231 | ) | ||||||||||||
| Other investments | 132 | 13 | 34 | (66 | ) | (155 | ) | |||||||||||||||
| Total | $ | (1,298 | ) | $ | (1,894 | ) | $ | 5,061 | $ | 5,638 | $ | 4,146 | ||||||||||
| Deposits | ||||||||||||||||||||||
| March 31, 2017 | December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 | ||||||||||||||||||
| Interest-bearing deposits: | ||||||||||||||||||||||
| Interest-bearing checking | $ | 395,131 | $ | 379,424 | $ | 333,055 | $ | 333,425 | $ | 335,240 | ||||||||||||
| Money market | 757,071 | 761,657 | 725,116 | 718,144 | 773,637 | |||||||||||||||||
| Savings | 255,791 | 232,193 | 228,391 | 217,877 | 190,477 | |||||||||||||||||
| Wholesale non-maturity deposits | 69,471 | 74,272 | 64,664 | 58,690 | 62,454 | |||||||||||||||||
| Wholesale time deposits | 68,164 | 73,037 | 99,052 | 113,274 | 131,145 | |||||||||||||||||
| Retail time deposits | 319,381 | 322,912 | 309,584 | 279,067 | 207,597 | |||||||||||||||||
| Total interest-bearing deposits | 1,865,009 | 1,843,495 | 1,759,862 | 1,720,477 | 1,700,550 | |||||||||||||||||
| Noninterest-bearing deposits | 771,556 | 736,180 | 718,015 | 689,214 | 643,492 | |||||||||||||||||
| Total deposits | $ | 2,636,565 | $ | 2,579,675 | $ | 2,477,877 | $ | 2,409,691 | $ | 2,344,042 | ||||||||||||
| Bryn Mawr Bank Corporation | |||||||||||||||||||||
| Detailed Income Statements (unaudited) | |||||||||||||||||||||
| (dollars in thousands, except per share data) | |||||||||||||||||||||
| For the Three Months Ended | |||||||||||||||||||||
| March 31, 2017 | December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 | |||||||||||||||||
| Interest income: | |||||||||||||||||||||
| Interest and fees on loans and leases | $ | 28,482 | $ | 28,230 | $ | 27,931 | $ | 27,679 | $ | 26,696 | |||||||||||
| Interest on cash and cash equivalents | 66 | 53 | 27 | 42 | 46 | ||||||||||||||||
| Interest on investment securities | 1,778 | 1,639 | 1,556 | 1,565 | 1,527 | ||||||||||||||||
| Total interest income | 30,326 | 29,922 | 29,514 | 29,286 | 28,269 | ||||||||||||||||
| Interest expense: | |||||||||||||||||||||
| Interest on deposits | 1,828 | 1,780 | 1,575 | 1,402 | 1,076 | ||||||||||||||||
| Interest on short-term borrowings | 27 | 22 | 34 | 20 | 17 | ||||||||||||||||
| Interest on FHLB advances and other borrowings | 698 | 760 | 818 | 867 | 908 | ||||||||||||||||
| Interest on subordinated notes | 370 | 370 | 370 | 370 | 366 | ||||||||||||||||
| Total interest expense | 2,923 | 2,932 | 2,797 | 2,659 | 2,367 | ||||||||||||||||
| Net interest income | 27,403 | 26,990 | 26,717 | 26,627 | 25,902 | ||||||||||||||||
| Provision for loan and lease losses (the “Provision”) | 291 | 1,059 | 1,412 | 445 | 1,410 | ||||||||||||||||
| Net interest income after Provision | 27,112 | 25,931 | 25,305 | 26,182 | 24,492 | ||||||||||||||||
| Noninterest income: | |||||||||||||||||||||
| Fees for wealth management services | 9,303 | 9,327 | 9,100 | 9,431 | 8,832 | ||||||||||||||||
| Insurance revenue | 763 | 715 | 886 | 845 | 1,276 | ||||||||||||||||
| Service charges on deposits | 647 | 688 | 688 | 713 | 702 | ||||||||||||||||
| Loan servicing and other fees | 503 | 411 | 497 | 539 | 492 | ||||||||||||||||
| Net gain on sale of loans | 629 | 607 | 879 | 857 | 705 | ||||||||||||||||
| Net gain (loss) on sale of investment securities available for sale | 1 | 9 | (28 | ) | (43 | ) | (15 | ) | |||||||||||||
| Net (loss) gain on sale of other real estate owned | – | – | – | – | (76 | ) | |||||||||||||||
| Dividends on FHLB and FRB stocks | 214 | 309 | 277 | 263 | 214 | ||||||||||||||||
| Other operating income | 1,167 | 1,182 | 1,487 | 1,176 | 1,023 | ||||||||||||||||
| Total noninterest income | 13,227 | 13,248 | 13,786 | 13,781 | 13,153 | ||||||||||||||||
| Noninterest expense: | |||||||||||||||||||||
| Salaries and wages | 12,450 | 11,855 | 11,621 | 12,197 | 11,738 | ||||||||||||||||
| Employee benefits | 2,559 | 2,207 | 2,420 | 2,436 | 2,485 | ||||||||||||||||
| Occupancy and bank premises | 2,526 | 2,407 | 2,349 | 2,367 | 2,488 | ||||||||||||||||
| Furniture, fixtures and equipment | 1,974 | 1,869 | 1,837 | 1,895 | 1,919 | ||||||||||||||||
| Advertising | 386 | 391 | 334 | 372 | 284 | ||||||||||||||||
| Amortization of intangible assets | 693 | 830 | 888 | 889 | 891 | ||||||||||||||||
| Impairment (recovery) of mortgage servicing rights (“MSRs”) | 3 | (580 | ) | 29 | 599 | 83 | |||||||||||||||
| Due diligence, merger-related and merger integration expenses | 511 | – | – | – | – | ||||||||||||||||
| Professional fees | 711 | 963 | 937 | 946 | 813 | ||||||||||||||||
| Pennsylvania bank shares tax | 664 | (204 | ) | 675 | 640 | 638 | |||||||||||||||
| Information technology | 874 | 857 | 881 | 875 | 1,048 | ||||||||||||||||
| Other operating expenses | 3,309 | 4,492 | 3,400 | 3,004 | 2,609 | ||||||||||||||||
| Total noninterest expense | 26,660 | 25,087 | 25,371 | 26,220 | 24,996 | ||||||||||||||||
| Income before income taxes | 13,679 | 14,092 | 13,720 | 13,743 | 12,649 | ||||||||||||||||
| Income tax expense | 4,635 | 4,684 | 4,346 | 4,810 | 4,328 | ||||||||||||||||
| Net income | $ | 9,044 | $ | 9,408 | $ | 9,374 | $ | 8,933 | $ | 8,321 | |||||||||||
| Per share data: | |||||||||||||||||||||
| Weighted average shares outstanding | 16,954,132 | 16,916,705 | 16,860,727 | 16,812,219 | 16,848,202 | ||||||||||||||||
| Dilutive common shares | 228,557 | 247,970 | 211,631 | 215,200 | 34,991 | ||||||||||||||||
| Adjusted weighted average diluted shares | 17,182,689 | 17,164,675 | 17,072,358 | 17,027,419 | 16,883,364 | ||||||||||||||||
| Basic earnings (loss) per common share | $ | 0.53 | $ | 0.56 | $ | 0.56 | $ | 0.53 | $ | 0.49 | |||||||||||
| Diluted earnings (loss) per common share | $ | 0.53 | $ | 0.55 | $ | 0.55 | $ | 0.52 | $ | 0.49 | |||||||||||
| Dividend declared per share | $ | 0.21 | $ | 0.21 | $ | 0.21 | $ | 0.20 | $ | 0.20 | |||||||||||
| Effective tax rate | 33.88 | % | 33.24 | % | 31.68 | % | 35.09 | % | 34.59 | % | |||||||||||
| Bryn Mawr Bank Corporation | ||||||||||||||||||||||||||||||||||||||||||
| Tax-Equivalent Net Interest Margin (unaudited) | ||||||||||||||||||||||||||||||||||||||||||
| (dollars in thousands, except per share data) | ||||||||||||||||||||||||||||||||||||||||||
| For The Three Months Ended | ||||||||||||||||||||||||||||||||||||||||||
| March 31, 2017 | December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 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 | |||||||||||||||||||||||||||
| Assets: | ||||||||||||||||||||||||||||||||||||||||||
| Interest-bearing deposits with other banks | $ | 39,669 | $ | 66 | 0.67 | % | $ | 55,298 | $ | 53 | 0.38 | % | $ | 33,532 | $ | 27 | 0.32 | % | $ | 44,950 | $ | 42 | 0.38 | % | $ | 39,050 | $ | 46 | 0.47 | % | ||||||||||||
| Investment securities – available for sale: | ||||||||||||||||||||||||||||||||||||||||||
| Taxable | 354,229 | 1,653 | 1.89 | % | 344,931 | 1,498 | 1.73 | % | 329,293 | 1,423 | 1.72 | % | 325,893 | 1,433 | 1.77 | % | 316,353 | 1,397 | 1.78 | % | ||||||||||||||||||||||
| Tax-exempt | 31,485 | 164 | 2.11 | % | 34,985 | 175 | 1.99 | % | 37,893 | 189 | 1.98 | % | 39,193 | 187 | 1.92 | % | 40,658 | 191 | 1.89 | % | ||||||||||||||||||||||
| Total investment securities – available for sale | 385,714 | 1,817 | 1.91 | % | 379,916 | 1,673 | 1.75 | % | 367,186 | 1,612 | 1.75 | % | 365,086 | 1,620 | 1.78 | % | 357,011 | 1,588 | 1.79 | % | ||||||||||||||||||||||
| Investment securities – held to maturity | 3,702 | 7 | 0.77 | % | 2,889 | 7 | 0.96 | % | 2,907 | 6 | 0.82 | % | 2,427 | 4 | 0.66 | % | – | – | ||||||||||||||||||||||||
| Investment securities – trading | 3,890 | 8 | 0.83 | % | 3,853 | 16 | 1.65 | % | 3,523 | 2 | 0.23 | % | 3,640 | 2 | 0.22 | % | 3,946 | 2 | 0.20 | % | ||||||||||||||||||||||
| Loans and leases * | 2,555,677 | 28,622 | 4.54 | % | 2,517,967 | 28,354 | 4.48 | % | 2,476,972 | 28,032 | 4.50 | % | 2,412,643 | 27,761 | 4.63 | % | 2,308,584 | 26,778 | 4.67 | % | ||||||||||||||||||||||
| Total interest-earning assets | 2,988,652 | 30,520 | 4.14 | % | 2,959,923 | 30,103 | 4.05 | % | 2,884,120 | 29,679 | 4.09 | % | 2,828,746 | 29,429 | 4.18 | % | 2,708,591 | 28,414 | 4.22 | % | ||||||||||||||||||||||
| Cash and due from banks | 14,942 | 16,127 | 16,228 | 16,413 | 16,501 | |||||||||||||||||||||||||||||||||||||
| Less: allowance for loan and lease losses | (17,580 | ) | (17,858 | ) | (17,257 | ) | (17,271 | ) | (16,239 | ) | ||||||||||||||||||||||||||||||||
| Other assets | 258,046 | 257,676 | 258,928 | 262,065 | 264,295 | |||||||||||||||||||||||||||||||||||||
| Total assets | $ | 3,244,060 | $ | 3,215,868 | $ | 3,142,019 | $ | 3,089,953 | $ | 2,973,148 | ||||||||||||||||||||||||||||||||
| Liabilities: | ||||||||||||||||||||||||||||||||||||||||||
| Interest-bearing deposits: | ||||||||||||||||||||||||||||||||||||||||||
| Savings, NOW and market rate deposits | $ | 1,388,561 | $ | 756 | 0.22 | % | $ | 1,328,577 | $ | 686 | 0.21 | % | $ | 1,286,404 | $ | 641 | 0.20 | % | $ | 1,273,964 | $ | 589 | 0.19 | % | $ | 1,279,630 | $ | 569 | 0.18 | % | ||||||||||||
| Wholesale deposits | 143,461 | 317 | 0.90 | % | 156,541 | 319 | 0.81 | % | 164,706 | 327 | 0.79 | % | 196,517 | 361 | 0.74 | % | 137,201 | 233 | 0.68 | % | ||||||||||||||||||||||
| Retail time deposits | 320,172 | 755 | 0.96 | % | 324,158 | 775 | 0.95 | % | 278,579 | 607 | 0.87 | % | 246,771 | 452 | 0.74 | % | 216,820 | 274 | 0.51 | % | ||||||||||||||||||||||
| Total interest-bearing deposits | 1,852,194 | 1,828 | 0.40 | % | 1,809,276 | 1,780 | 0.39 | % | 1,729,689 | 1,575 | 0.36 | % | 1,717,252 | 1,402 | 0.33 | % | 1,633,651 | 1,076 | 0.26 | % | ||||||||||||||||||||||
| Borrowings: | ||||||||||||||||||||||||||||||||||||||||||
| Short-term borrowings | 47,603 | 27 | 0.23 | % | 40,629 | 22 | 0.22 | % | 40,966 | 34 | 0.33 | % | 32,328 | 20 | 0.25 | % | 34,158 | 17 | 0.20 | % | ||||||||||||||||||||||
| Long-term FHLB advances and other borrowings | 182,507 | 698 | 1.55 | % | 198,454 | 760 | 1.52 | % | 218,920 | 818 | 1.49 | % | 236,248 | 867 | 1.48 | % | 250,015 | 908 | 1.46 | % | ||||||||||||||||||||||
| Subordinated notes | 29,537 | 370 | 5.08 | % | 29,523 | 370 | 4.99 | % | 29,509 | 370 | 4.99 | % | 29,496 | 370 | 5.05 | % | 29,482 | 366 | 4.99 | % | ||||||||||||||||||||||
| Total borrowings | 259,647 | 1,095 | 1.71 | % | 268,606 | 1,152 | 1.71 | % | 289,395 | 1,222 | 1.68 | % | 298,072 | 1,257 | 1.70 | % | 313,655 | 1,291 | 1.66 | % | ||||||||||||||||||||||
| Total interest-bearing liabilities | 2,111,841 | 2,923 | 0.56 | % | 2,077,882 | 2,932 | 0.56 | % | 2,019,084 | 2,797 | 0.55 | % | 2,015,324 | 2,659 | 0.53 | % | 1,947,306 | 2,367 | 0.49 | % | ||||||||||||||||||||||
| Noninterest-bearing deposits | 711,794 | 724,465 | 716,581 | 675,710 | 631,047 | |||||||||||||||||||||||||||||||||||||
| Other liabilities | 38,211 | 35,478 | 33,400 | 32,804 | 33,923 | |||||||||||||||||||||||||||||||||||||
| Total noninterest-bearing liabilities | 750,005 | 759,943 | 749,981 | 708,514 | 664,970 | |||||||||||||||||||||||||||||||||||||
| Total liabilities | 2,861,846 | 2,837,825 | 2,769,065 | 2,723,838 | 2,612,276 | |||||||||||||||||||||||||||||||||||||
| Shareholders’ equity | 382,214 | 378,043 | 372,954 | 366,115 | 360,872 | |||||||||||||||||||||||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 3,244,060 | $ | 3,215,868 | $ | 3,142,019 | $ | 3,089,953 | $ | 2,973,148 | ||||||||||||||||||||||||||||||||
| Interest income to earning assets | 4.14 | % | 4.05 | % | 4.09 | % | 4.18 | % | 4.22 | % | ||||||||||||||||||||||||||||||||
| Net interest spread | 3.58 | % | 3.49 | % | 3.54 | % | 3.65 | % | 3.73 | % | ||||||||||||||||||||||||||||||||
| Effect of noninterest-bearing sources | 0.16 | % | 0.16 | % | 0.17 | % | 0.16 | % | 0.14 | % | ||||||||||||||||||||||||||||||||
| Tax-equivalent net interest margin | $ | 27,597 | 3.74 | % | $ | 27,171 | 3.65 | % | $ | 26,882 | 3.71 | % | $ | 26,770 | 3.81 | % | $ | 26,047 | 3.87 | % | ||||||||||||||||||||||
| Tax-equivalent adjustment | $ | 194 | 0.02 | % | $ | 181 | 0.02 | % | $ | 165 | 0.02 | % | $ | 143 | 0.02 | % | $ | 145 | 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 | |||||||||||||||||||||||||||||||||
| Loans and leases | $ | 726 | 0.12 | % | $ | 742 | 0.12 | % | $ | 578 | 0.09 | % | $ | 1,076 | 0.18 | % | $ | 953 | 0.17 | % | ||||||||||||||||||||||
| Retail time deposits | (19 | ) | -0.02 | % | (19 | ) | -0.02 | % | (29 | ) | -0.04 | % | (61 | ) | -0.10 | % | (110 | ) | -0.20 | % | ||||||||||||||||||||||
| Short-term borrowings | – | 0.00 | % | – | 0.00 | % | – | 0.00 | % | – | 0.00 | % | (12 | ) | -0.14 | % | ||||||||||||||||||||||||||
| Long-term FHLB advances and other borrowings | (30 | ) | -0.07 | % | (30 | ) | -0.06 | % | (30 | ) | -0.05 | % | (30 | ) | -0.05 | % | (30 | ) | -0.05 | % | ||||||||||||||||||||||
| Net interest income from fair value marks | $ | 775 | $ | 791 | $ | 637 | $ | 1,167 | $ | 1,105 | ||||||||||||||||||||||||||||||||
| Purchase accounting effect on tax-equivalent margin | 0.11 | % | 0.11 | % | 0.09 | % | 0.17 | % | 0.16 | % | ||||||||||||||||||||||||||||||||
| * 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, 2017 | December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 | |||||||||||||||||
| Reconciliation of Net Income to Net Income (core): | |||||||||||||||||||||
| Net income (loss) (a GAAP measure) | $ | 9,044 | $ | 9,408 | $ | 9,374 | $ | 8,933 | $ | 8,321 | |||||||||||
| Less: Tax-effected non-core noninterest income: | |||||||||||||||||||||
| Loss (gain) on sale of investment securities available for sale | (1 | ) | (6 | ) | 18 | 28 | 10 | ||||||||||||||
| Add: Tax-effected non-core noninterest expense items: | |||||||||||||||||||||
| Due diligence, merger-related and merger integration expenses | 332 | – | – | – | – | ||||||||||||||||
| Net income (core) (a non-GAAP measure) | $ | 9,375 | $ | 9,402 | $ | 9,392 | $ | 8,961 | $ | 8,331 | |||||||||||
| Calculation of Basic and Diluted Earnings per Common Share (core): | |||||||||||||||||||||
| Weighted average common shares outstanding | 16,954,132 | 16,916,705 | 16,860,727 | 16,812,219 | 16,848,202 | ||||||||||||||||
| Dilutive common shares | 228,557 | 247,970 | 211,631 | 215,200 | 35,162 | ||||||||||||||||
| Adjusted weighted average diluted shares | 17,182,689 | 17,164,675 | 17,072,358 | 17,027,419 | 16,883,364 | ||||||||||||||||
| Basic earnings per common share (core) (a non-GAAP measure) | $ | 0.55 | $ | 0.56 | $ | 0.56 | $ | 0.53 | $ | 0.49 | |||||||||||
| Diluted earnings per common share (core) (a non-GAAP measure) | $ | 0.55 | $ | 0.55 | $ | 0.55 | $ | 0.53 | $ | 0.49 | |||||||||||
| Calculation of Return on Average Tangible Equity: | |||||||||||||||||||||
| Net income (loss) | $ | 9,044 | $ | 9,408 | $ | 9,374 | $ | 8,933 | $ | 8,321 | |||||||||||
| Add: Tax-effected amortization and impairment of intangible assets | 450 | 540 | 577 | 578 | 579 | ||||||||||||||||
| Net tangible income (numerator) | $ | 9,494 | $ | 9,948 | $ | 9,951 | $ | 9,511 | $ | 8,900 | |||||||||||
| Average shareholders’ equity | $ | 382,214 | $ | 378,043 | $ | 372,954 | $ | 366,115 | $ | 360,872 | |||||||||||
| Less: Average goodwill and intangible assets | (124,884 | ) | (125,614 | ) | (126,505 | ) | (127,402 | ) | (128,296 | ) | |||||||||||
| Net average tangible equity (denominator) | $ | 257,330 | $ | 252,429 | $ | 246,449 | $ | 238,713 | $ | 232,576 | |||||||||||
| Return on tangible equity (a non-GAAP measure) | 14.96 | % | 15.68 | % | 16.06 | % | 16.02 | % | 15.39 | % | |||||||||||
| Calculation of Tangible Equity Ratio: | |||||||||||||||||||||
| Total shareholders’ equity | $ | 388,095 | $ | 381,127 | $ | 378,459 | $ | 372,467 | $ | 365,177 | |||||||||||
| Less: Goodwill and intangible assets | (124,629 | ) | (125,170 | ) | (126,000 | ) | (126,888 | ) | (127,777 | ) | |||||||||||
| Net tangible equity (numerator) | $ | 263,466 | $ | 255,957 | $ | 252,459 | $ | 245,579 | $ | 237,400 | |||||||||||
| Total assets | $ | 3,292,617 | $ | 3,421,530 | $ | 3,174,080 | $ | 3,090,090 | $ | 3,058,247 | |||||||||||
| Less: Goodwill and intangible assets | (124,629 | ) | (125,170 | ) | (126,000 | ) | (126,888 | ) | (127,777 | ) | |||||||||||
| Tangible assets (denominator) | $ | 3,167,988 | $ | 3,296,360 | $ | 3,048,080 | $ | 2,963,202 | $ | 2,930,470 | |||||||||||
| Tangible equity ratio | 8.32 | % | 7.76 | % | 8.28 | % | 8.29 | % | 8.10 | % | |||||||||||
| Calculation of Efficiency Ratio: | |||||||||||||||||||||
| Noninterest expense | $ | 26,660 | $ | 25,087 | $ | 25,371 | $ | 26,220 | $ | 24,996 | |||||||||||
| 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 | (693 | ) | (830 | ) | (888 | ) | (889 | ) | (891 | ) | |||||||||||
| Impairment of intangible assets | – | – | – | – | – | ||||||||||||||||
| Due diligence, merger-related and merger integration expenses | (511 | ) | – | – | – | – | |||||||||||||||
| Noninterest expense (adjusted) (numerator) | $ | 25,456 | $ | 24,257 | $ | 24,483 | $ | 25,331 | $ | 24,105 | |||||||||||
| Noninterest income | $ | 13,227 | $ | 13,248 | $ | 13,786 | $ | 13,781 | $ | 13,153 | |||||||||||
| Less: non-core noninterest income items: | |||||||||||||||||||||
| Loss (gain) on sale of investment securities available for sale | (2 | ) | (9 | ) | 28 | 43 | 15 | ||||||||||||||
| Noninterest income (core) | $ | 13,225 | $ | 13,239 | $ | 13,814 | $ | 13,824 | $ | 13,168 | |||||||||||
| Net interest income | 27,403 | 26,990 | 26,717 | 26,627 | 25,902 | ||||||||||||||||
| Noninterest income (core) and net interest income (denominator) | $ | 40,628 | $ | 40,229 | $ | 40,531 | $ | 40,451 | $ | 39,070 | |||||||||||
| Efficiency ratio | 62.66 | % | 60.30 | % | 60.41 | % | 62.62 | % | 61.70 | % | |||||||||||
| * 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 | $ | 17,107 | $ | 17,486 | $ | 17,744 | $ | 17,036 | $ | 16,845 | |||||||||||
| less: Allowance on acquired loans | 38 | 28 | 28 | 28 | 28 | ||||||||||||||||
| Allowance on originated loans and leases | $ | 17,069 | $ | 17,458 | $ | 17,716 | $ | 17,008 | $ | 16,817 | |||||||||||
| Total Allowance | $ | 17,107 | $ | 17,486 | $ | 17,744 | $ | 17,036 | $ | 16,845 | |||||||||||
| Loan mark on acquired loans | 11,544 | 12,286 | 13,391 | 14,566 | 15,930 | ||||||||||||||||
| Total Allowance + Loan mark | $ | 28,651 | $ | 29,772 | $ | 31,135 | $ | 31,602 | $ | 32,775 | |||||||||||
| Total Portfolio loans and leases | $ | 2,555,589 | $ | 2,535,425 | $ | 2,493,357 | $ | 2,423,821 | $ | 2,378,841 | |||||||||||
| less: Originated loans and leases | 2,286,814 | 2,240,987 | 2,176,549 | 2,090,070 | 2,015,683 | ||||||||||||||||
| Net acquired loans | $ | 268,775 | $ | 294,438 | $ | 316,808 | $ | 333,751 | $ | 363,158 | |||||||||||
| add: Loan mark on acquired loans | 11,544 | 12,286 | 13,391 | 14,566 | 15,930 | ||||||||||||||||
| Gross acquired loans (excludes loan mark) | $ | 280,319 | $ | 306,724 | $ | 330,199 | $ | 348,317 | $ | 379,088 | |||||||||||
| Originated loans and leases | 2,286,814 | 2,240,987 | 2,176,549 | 2,090,070 | 2,015,683 | ||||||||||||||||
| Total Gross portfolio loans and leases | $ | 2,567,133 | $ | 2,547,711 | $ | 2,506,748 | $ | 2,438,387 | $ | 2,394,771 | |||||||||||
CONTACT: FOR MORE INFORMATION CONTACT: Frank Leto, President, CEO 610-581-4730 Mike Harrington, CFO 610-526-2466