BRYN MAWR, Pa., July 21, 2016 (GLOBE NEWSWIRE) — Bryn Mawr Bank Corporation (NASDAQ:BMTC) (the “Corporation”), parent of The Bryn Mawr Trust Company (the “Bank”), today reported net income of $8.9 million and diluted earnings per share of $0.52 for the three months ended June 30, 2016, as compared to $8.3 million, or $0.49 diluted earnings per share for the three months ended March 31, 2016 and $8.1 million, or $0.45 diluted earnings per share for the three months ended June 30, 2015.
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 also $8.9 million, or $0.53 diluted earnings per share for the three months ended June 30, 2016 as compared to $8.3 million, or $0.49 diluted earnings per share for the three months ended March 31, 2016 and $9.0 million, or $0.50 diluted earnings per share for the three months ended June 30, 2015. 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 results for the second quarter are promising, with the full effect of the first quarter loan growth having a significant impact on our net interest income,” commented Frank Leto, President and Chief Executive Officer, continuing, “in addition, our credit quality continues to be strong, with low charge-off and delinquency levels which are reflected in the reduced provision recorded this quarter.” Mr. Leto added, “As we saw in the first quarter of this year, we continue to experience the positive results stemming from the strategic decisions we made in 2015. We are beginning to reap the benefits of our significant investment in new technology, and the addition of new teams and talent to the organization.”
On July 21, 2016, the Board of Directors of the Corporation elected to increase the quarterly dividend by 5%, declaring a quarterly dividend of $0.21 per share, payable September 1, 2016 to shareholders of record as of August 2, 2016.
SIGNIFICANT ITEMS OF NOTE
Results of Operations – Second Quarter 2016 Compared to First Quarter 2016
- Net income for the three months ended June 30, 2016 was $8.9 million, as compared to $8.3 million for the three months ended March 31, 2016. Largely accounting for the increase in net income was a $725 thousand increase in net interest income, a $965 thousand decrease in provision for loan and lease losses (the “Provision”) and a $599 thousand increase in fees for wealth management services between the periods. Partially offsetting these items were a $431 thousand decrease in insurance revenue, a $516 thousand increase in impairment of mortgage servicing rights (“MSRs”), and a $459 thousand increase in salaries and wages.
- Net interest income for the three months ended June 30, 2016 was $26.6 million, an increase of $725 thousand from $25.9 million for the three months ended March 31, 2016. Portfolio loan balances as of June 30, 2016 increased by $45.0 million from March 31, 2016, however, the average balance of portfolio loans for the three months ended June 30, 2016 increased $101.7 million from the three months ended March 31, 2016, indicating that the loan growth during the first quarter of 2016 was weighted more toward the end of the quarter. Partially funding this growth in portfolio loans was an $83.6 million increase, during the second quarter of 2016, in average interest-bearing deposits, largely concentrated in the retail time deposit segment of the deposit portfolio.
- The tax-equivalent net interest margin of 3.81% for the second quarter of 2016 decreased 6 basis points from 3.87% for the first quarter of 2016. The decrease was the result of a 4 basis point decrease in tax-equivalent yield earned on loans, coupled with increases in the tax-equivalent rates paid on interest-bearing deposits and borrowings of 7 basis points and 4 basis points, respectively. The contribution of fair value mark accretion to the tax equivalent net interest margin accounted for 17 basis points of the margin for the second quarter of 2016 as compared to 16 basis points for the first quarter of 2016.
- Non-interest income for the three months ended June 30, 2016 increased $612 thousand from the first quarter of 2016. The increase was related to increases of $599 thousand and $136 thousand in fees for wealth management services and gain on sale of loans, respectively. Fees for wealth management services increased largely as a result of a rebound, during the second quarter, of the asset balances in wealth accounts whose fees are tied to market values. In addition, fees for tax services charged during the second quarter augmented this growth. Further, the gain on sale of loans increased as the mortgage banking strategic initiative continues to build. Partially offsetting these increases was a decrease of $431 thousand in insurance revenues. During the first quarter of 2016, the insurance division received a $434 thousand contingent commission from the insurance carriers which was not repeated in the second quarter of 2016.
- Non-interest expense for the three months ended June 30, 2016 increased $1.2 million, to $26.3 million, as compared to $25.1 million for the first quarter of 2016. Largely contributing to the increase was the $516 thousand increase in impairment of MSRs recorded during the second quarter. This impairment was the result of increased expectations for the continuation of the low interest rate environment, partially driven by international events, which caused interest rates to fall at the end of the quarter. In addition, salaries and wages increased by $459 thousand from the first quarter of 2016, largely due to incentive accruals.
- For the three months ended June 30, 2016, net loan and lease charge-offs totaled $254 thousand, as compared to $422 thousand for the first quarter of 2016. The Provision for the three months ended June 30, 2016 was $445 thousand, as compared to $1.4 million for the first quarter of 2016. As of June 30, 2016, certain metrics related to the credit quality of the loan portfolio, which included delinquency and nonperforming percentages, had improved from levels seen at March 31, 2016, resulting in a lower level of allowance for loan and lease losses (the “Allowance”).
Results of Operations – Second Quarter 2016 Compared to Second Quarter 2015
- Net income for the three months ended June 30, 2016 was $8.9 million, or $0.52 diluted earnings per share, as compared to $8.1 million, or $0.45 diluted earnings per share for the same period in 2015. Significantly contributing to the increase in net income was a $1.6 million increase in net interest income, a $1.3 million reduction in due diligence, merger-related and merger integration costs, and a $405 thousand decrease in the Provision. Partially offsetting these improvements was a $621 thousand increase in impairment of MSRs, a $169 thousand decrease in fees for wealth management services and increases of $1.1 million and $407 thousand in salaries and wages and furniture, fixtures and equipment expense, respectively. In addition to the effect of the increase in net income, the $0.07 increase in diluted earnings per share was also partially the result of the share repurchase which occurred between June 30, 2015 and June 30, 2016.
- Net interest income for the three months ended June 30, 2016 was $26.6 million, an increase of $1.6 million, or 6.2%, from $25.0 million for the same period in 2015. The increase in net interest income was largely related to the growth in average loan balances between the periods. Average loans and leases for the three months ended June 30, 2016 increased by $294.5 million from the same period in 2015. The increase in average loan balances was offset by a 22 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 $2.1 million increase in interest income on loans. On the liability side, an $88.5 million increase in average interest-bearing deposits and a $13.4 million increase in average borrowings resulted in a $736 thousand increase in interest expense between the periods. The tax-equivalent rate paid on deposits increased 7 basis points while that of borrowings increased by 49 basis points.
- The tax-equivalent net interest margin of 3.81% for the three months ended June 30, 2016 was unchanged from the same period in 2015. The contribution of fair value mark accretion to the tax equivalent net interest margin accounted for 17 basis points of the margin for the second quarter of 2016 as compared to 23 basis points for the second quarter of 2015.
- Non-interest income for the three months ended June 30, 2016 decreased $357 thousand as compared to the same period in 2015. Contributing to this decrease was a $169 thousand decrease in fees for wealth management services. In addition, decreases of $75 thousand and $58 thousand in gain on sale of OREO and loan servicing and other fees, respectively, also contributed to the decrease between periods. Partially offsetting these decreases was a $118 thousand increase in gain on sale of loans.
- Non-interest expense for the three months ended June 30, 2016 increased $277 thousand, to $26.3 million, as compared to $26.0 million for the same period in 2015. Factors contributing to the increase were the $1.1 million increase in salaries and wages which were related to staff additions, incentive accruals and annual increases, a $621 thousand increase in impairment of MSRs related to the quarter-end market interest rate drop, which affected prepayment speeds, and a $407 thousand increase in furniture, fixtures and equipment expense, primarily related to the depreciation of the infrastructure improvements which were completed in 2015. Partially offsetting these increases was a $1.3 million decrease in due diligence, merger-related and merger integration costs.
- The Provision for the three months ended June 30, 2016 of $445 thousand was a $405 thousand decrease from the same period in 2015. Although net loan and lease charge-offs for the second quarter of 2016 increased by $68 thousand from the same period in 2015, certain metrics related to the credit quality of the loan portfolio, which included delinquency and nonperforming percentages, improved as of June 30, 2016 as compared to June 30, 2015, resulting in a lower level of Allowance.
Financial Condition – June 30, 2016 Compared to December 31, 2015
- Total portfolio loans and leases of $2.42 billion as of June 30, 2016 increased by $154.8 million, or 6.8%, from December 31, 2015. Loan growth was concentrated in the commercial mortgage, commercial and industrial, and construction categories, which increased $91.7 million, $14.2 million and $42.9 million, respectively, since December 31, 2015.
- The Allowance as of June 30, 2016 was $17.0 million, or 0.70% of portfolio loans as compared to $15.9 million, or 0.70% of portfolio loans and leases, as of December 31, 2015. 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 0.81% as of June 30, 2016, as compared to 0.84% as of December 31, 2015, and the Allowance plus the remaining loan mark as a percentage of gross loans, which was 1.30% as of June 30, 2016, as compared to 1.44% as of December 31, 2015. 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 June 30, 2016 were $365.5 million, an increase of $16.5 million from December 31, 2015. Increases of $34.6 million in mortgage-related securities were partially offset by decreases of $15.4 million in U.S. government securities and $2.4 million in municipal obligations.
- Total assets as of June 30, 2016 were $3.09 billion, an increase of $59.1 million from December 31, 2015. Increases in loans and leases and available for sale investment securities were partially offset by reductions in interest-bearing deposits with banks, which decreased by $104.1 million.
- Wealth assets under management, administration, supervision and brokerage totaled $9.63 billion as of June 30, 2016, an increase of $1.27 billion, or 15.2%, from December 31, 2015. Despite this growth in assets, income related to these services grew only 4.9%, as more of the portfolio was comprised of assets held in lower-yielding fixed-fee accounts. Although the balances of wealth accounts whose fees are tied to their asset values are decreasing relative to the balances of fixed-fee accounts due to the strong growth of the latter, the growth in balances in the market-based accounts has been muted, in part, due to normal attrition of funds from these accounts, primarily through beneficiary spending, offsetting very solid new business development and strong account retention.
- Deposits of $2.41 billion as of June 30, 2016 increased $157.0 million from December 31, 2015. Noninterest-bearing deposits increased by $62.5 million, retail time deposits and savings deposits increased by $49.8 million and $30.6 million, respectively, and wholesale time deposits increased by $60.1 million. These increases were partially offset by a $31.6 million decrease in money market accounts.
- The capital ratios for the Bank and the Corporation, as of June 30, 2016, 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 from their December 31, 2015 levels, primarily due to increases in retained earnings, other comprehensive income and the $15.0 million capital infusion received from the Corporation in the first quarter of 2016. At the Corporation level, most capital levels remain below their December 31, 2015 levels largely due to asset growth, although most have increased from the March 31, 2016 levels.
EARNINGS CONFERENCE CALL
After discussions with many of our investors and other interested parties, the Corporation has decided to discontinue the practice of conducting the earnings conference calls beginning next quarter. As always, we will continue to be available to answer questions through our investor relations department which is listed on our website.
The Corporation will hold its second quarter 2016 earnings conference call at 8:30 a.m. Eastern Time on Friday, July 22, 2016. Interested parties may participate by dialing (toll-free) 1-877-504-8812 (international (toll) 1-412-902-6656). A recorded replay of the conference call will be available one hour after the conclusion of the call and will remain available through August 5, 2016. The recorded replay may be accessed by dialing (toll-free) 1-877-344-7529 (international (toll) 1-412-317-0088). The conference number is 10089216.
The conference call will be simultaneously broadcast live over the Internet through a webcast on the investor relations portion of the Bryn Mawr Bank Corporation website. To access the call, please visit the website at http://services.choruscall.com/links/bmtc160722. An online archive of the webcast will be available within one hour of the conclusion of the call. The Corporation has also recently expanded its Investor Relations website to include added resources and information for shareholders and interested investors. Interested parties are encouraged to utilize the expanded resources of the site for more information on Bryn Mawr Bank Corporation.
FORWARD LOOKING STATEMENTS AND SAFE HARBOR
This press release contains statements which, to the extent that they are not recitations of historical fact may constitute forward-looking statements for purposes of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. Such forward-looking statements may include financial and other projections as well as statements regarding the Corporation’s future plans, objectives, performance, revenues, growth, profits, operating expenses or the Corporation’s underlying assumptions. The words “may,” “would,” “should,” “could,” “will,” “likely,” “possibly,” “expect,” “anticipate,” “intend,” “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, 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 | For the Six Months Ended | ||||||||||||||||||||||||||||
| June 30, 2016 | March 31, 2016 | December 31, 2015 | September 30, 2015 | June 30, 2015 | June 30, 2016 | June 30, 2015 | |||||||||||||||||||||||
| Consolidated Balance Sheet (selected items) | |||||||||||||||||||||||||||||
| Interest-bearing deposits with banks | $ | 20,481 | $ | 33,954 | $ | 124,615 | $ | 100,980 | $ | 156,282 | |||||||||||||||||||
| Investment securities (AFS, HTM and Trading) | 371,906 | 369,461 | 352,916 | 344,872 | 353,525 | ||||||||||||||||||||||||
| Loans held for sale | 11,882 | 7,807 | 8,987 | 8,721 | 15,363 | ||||||||||||||||||||||||
| Portfolio loans and leases | 2,423,821 | 2,378,841 | 2,268,988 | 2,228,764 | 2,153,263 | ||||||||||||||||||||||||
| Allowance for loan and lease losses (“ALLL”) | (17,036 | ) | (16,845 | ) | (15,857 | ) | (15,935 | ) | (14,959 | ) | |||||||||||||||||||
| Goodwill and other intangible assets | 126,888 | 127,777 | 128,668 | 129,694 | 130,631 | ||||||||||||||||||||||||
| Total assets | 3,090,090 | 3,058,247 | 3,030,997 | 2,952,742 | 2,950,014 | ||||||||||||||||||||||||
| Deposits – interest-bearing | 1,720,477 | 1,700,550 | 1,626,041 | 1,634,237 | 1,624,257 | ||||||||||||||||||||||||
| Deposits – non-interest-bearing | 689,214 | 643,492 | 626,684 | 605,607 | 636,390 | ||||||||||||||||||||||||
| Short-term borrowings | 19,119 | 37,010 | 94,167 | 24,264 | 26,406 | ||||||||||||||||||||||||
| Long-term FHLB advances and other borrowings | 224,802 | 249,832 | 254,863 | 254,893 | 244,923 | ||||||||||||||||||||||||
| Subordinated notes | 29,505 | 29,491 | 29,479 | 29,466 | – | ||||||||||||||||||||||||
| Total liabilities | 2,717,623 | 2,693,070 | 2,665,286 | 2,584,587 | 2,568,916 | ||||||||||||||||||||||||
| Shareholders’ equity | 372,467 | 365,177 | 365,711 | 368,155 | 381,098 | ||||||||||||||||||||||||
| Average Balance Sheet (selected items) | |||||||||||||||||||||||||||||
| Interest-bearing deposits with banks | $ | 44,950 | $ | 39,050 | $ | 90,832 | $ | 165,723 | $ | 182,099 | $ | 42,000 | $ | 194,328 | |||||||||||||||
| Investment securities (AFS, HTM and Trading) | 371,153 | 360,957 | 354,239 | 356,028 | 351,080 | 366,055 | 362,571 | ||||||||||||||||||||||
| Loans held for sale | 7,844 | 5,481 | 7,531 | 10,527 | 6,735 | 6,662 | 5,111 | ||||||||||||||||||||||
| Portfolio loans and leases | 2,404,799 | 2,303,103 | 2,240,189 | 2,181,125 | 2,111,371 | 2,353,951 | 2,095,481 | ||||||||||||||||||||||
| Total interest-earning assets | 2,828,746 | 2,708,591 | 2,692,791 | 2,713,403 | 2,651,285 | 2,768,668 | 2,657,491 | ||||||||||||||||||||||
| Goodwill and intangible assets | 127,402 | 128,296 | 129,292 | 130,241 | 129,116 | 127,849 | 126,568 | ||||||||||||||||||||||
| Total assets | 3,089,953 | 2,973,148 | 2,959,011 | 2,981,308 | 2,910,701 | 3,031,550 | 2,914,408 | ||||||||||||||||||||||
| Deposits – interest-bearing | 1,717,252 | 1,633,651 | 1,611,574 | 1,644,976 | 1,628,759 | 1,675,451 | 1,644,456 | ||||||||||||||||||||||
| Short-term borrowings | 32,328 | 34,158 | 26,092 | 28,166 | 34,980 | 33,243 | 45,038 | ||||||||||||||||||||||
| Long-term FHLB advances and other borrowings | 236,248 | 250,015 | 254,880 | 248,606 | 249,678 | 243,131 | 257,963 | ||||||||||||||||||||||
| Subordinated notes | 29,496 | 29,482 | 29,471 | 18,190 | – | 29,489 | – | ||||||||||||||||||||||
| Total interest-bearing liabilities | 2,015,324 | 1,947,306 | 1,922,017 | 1,939,938 | 1,913,417 | 1,981,314 | 1,947,457 | ||||||||||||||||||||||
| Total liabilities | 2,723,838 | 2,612,276 | 2,593,651 | 2,604,704 | 2,531,547 | 2,668,056 | 2,539,175 | ||||||||||||||||||||||
| Shareholders’ equity | 366,115 | 360,872 | 365,360 | 376,604 | 379,154 | 363,494 | 375,233 | ||||||||||||||||||||||
| Income Statement | |||||||||||||||||||||||||||||
| Net interest income | $ | 26,627 | $ | 25,902 | $ | 25,429 | $ | 24,833 | $ | 25,070 | $ | 52,529 | $ | 49,865 | |||||||||||||||
| Provision for loan and lease losses | 445 | 1,410 | 1,777 | 1,200 | 850 | 1,855 | 1,419 | ||||||||||||||||||||||
| Noninterest income | 13,820 | 13,208 | 13,668 | 13,350 | 14,177 | 27,028 | 28,942 | ||||||||||||||||||||||
| Noninterest expense | 26,259 | 25,051 | 46,951 | 25,403 | 25,982 | 51,310 | 53,411 | ||||||||||||||||||||||
| Income tax expense (benefit) | 4,823 | 4,375 | (3,276 | ) | 4,084 | 4,296 | 9,198 | 8,364 | |||||||||||||||||||||
| Net income (loss) | 8,920 | 8,274 | (6,355 | ) | 7,496 | 8,119 | 17,194 | 15,613 | |||||||||||||||||||||
| Basic earnings per share | 0.53 | 0.49 | (0.37 | ) | 0.43 | 0.46 | 1.02 | 0.89 | |||||||||||||||||||||
| Diluted earnings per share | 0.52 | 0.49 | (0.37 | ) | 0.42 | 0.45 | 1.01 | 0.87 | |||||||||||||||||||||
| Net income (core) (1) | 8,948 | 8,284 | 7,506 | 8,241 | 8,958 | 17,232 | 17,891 | ||||||||||||||||||||||
| Basic earnings per share (core) (1) | 0.53 | 0.49 | 0.44 | 0.47 | 0.51 | 1.02 | 1.01 | ||||||||||||||||||||||
| Diluted earnings per share (core) (1) | 0.53 | 0.49 | 0.44 | 0.46 | 0.50 | 1.02 | 1.00 | ||||||||||||||||||||||
| Cash dividends paid per share | 0.20 | 0.20 | 0.20 | 0.20 | 0.19 | 0.40 | 0.38 | ||||||||||||||||||||||
| Profitability Indicators | |||||||||||||||||||||||||||||
| Return on average assets | 1.16 | % | 1.12 | % | -0.86 | % | 1.01 | % | 1.12 | % | 1.14 | % | 1.08 | % | |||||||||||||||
| Return on average equity | 9.80 | % | 9.22 | % | -7.00 | % | 8.01 | % | 8.61 | % | 9.51 | % | 8.39 | % | |||||||||||||||
| Return on tangible equity (1) | 16.00 | % | 15.31 | % | -9.36 | % | 13.25 | % | 14.06 | % | 15.66 | % | 13.68 | % | |||||||||||||||
| Tax-equivalent net interest margin | 3.81 | % | 3.87 | % | 3.77 | % | 3.65 | % | 3.81 | % | 3.84 | % | 3.80 | % | |||||||||||||||
| Efficiency ratio (1) | 62.66 | % | 61.75 | % | 63.09 | % | 60.97 | % | 60.48 | % | 62.21 | % | 60.46 | % | |||||||||||||||
| Mortgage Banking Information | |||||||||||||||||||||||||||||
| Mortgage loans originated | $ | 64,893 | $ | 52,532 | $ | 55,867 | $ | 76,169 | $ | 63,285 | $ | 117,425 | $ | 57,467 | |||||||||||||||
| Residential mortgage loans sold – servicing retained | 26,944 | 25,965 | 24,063 | 30,515 | 28,204 | 52,909 | 24,240 | ||||||||||||||||||||||
| Residential mortgage loans sold – servicing released | 5,279 | 2,397 | 7,150 | 10,579 | 9,257 | 7,676 | 152 | ||||||||||||||||||||||
| Total residential mortgage loans sold | $ | 32,223 | $ | 28,362 | $ | 31,213 | $ | 41,094 | $ | 37,461 | $ | 60,585 | $ | 24,392 | |||||||||||||||
| Residential mortgage loans serviced for others | $ | 610,418 | $ | 605,366 | $ | 601,939 | $ | 601,999 | $ | 595,440 | |||||||||||||||||||
| Share Data | |||||||||||||||||||||||||||||
| Closing share price | $ | 29.20 | $ | 25.73 | $ | 28.72 | $ | 31.07 | $ | 30.16 | |||||||||||||||||||
| Book value per common share | $ | 21.76 | $ | 21.48 | $ | 21.40 | $ | 21.94 | $ | 21.32 | |||||||||||||||||||
| Tangible book value per common share | $ | 14.60 | $ | 14.13 | $ | 13.89 | $ | 13.89 | $ | 14.08 | |||||||||||||||||||
| Price / book value | 134.19 | % | 119.80 | % | 134.19 | % | 141.62 | % | 141.48 | % | |||||||||||||||||||
| Price / tangible book value | 200.05 | % | 182.10 | % | 206.84 | % | 223.67 | % | 214.17 | % | |||||||||||||||||||
| Weighted average diluted shares outstanding | 17,025,037 | 16,883,193 | 17,129,234 | 17,834,298 | 18,054,663 | 16,954,116 | 17,979,426 | ||||||||||||||||||||||
| Shares outstanding, end of period | 16,824,564 | 16,801,801 | 17,071,523 | 17,166,323 | 17,786,293 | ||||||||||||||||||||||||
| Wealth Management Information: | |||||||||||||||||||||||||||||
| Wealth assets under mgmt, administration, supervision and brokerage (2) | $ | 9,632,521 | $ | 9,281,743 | $ | 8,364,805 | $ | 8,218,276 | $ | 8,536,024 | |||||||||||||||||||
| Fees for wealth management services | $ | 9,431 | $ | 8,832 | $ | 8,995 | $ | 9,194 | $ | 9,600 | |||||||||||||||||||
| Capital Ratios | |||||||||||||||||||||||||||||
| Bryn Mawr Trust Company | |||||||||||||||||||||||||||||
| Tier I capital to risk weighted assets (“RWA”) | 10.94 | % | 10.69 | % | 10.12 | % | 11.96 | % | 12.04 | % | |||||||||||||||||||
| Total (Tier II) capital to RWA | 11.65 | % | 11.39 | % | 10.78 | % | 12.64 | % | 12.71 | % | |||||||||||||||||||
| Tier I leverage ratio | 9.06 | % | 9.15 | % | 8.51 | % | 9.75 | % | 9.77 | % | |||||||||||||||||||
| Tangible equity ratio (1) | 8.79 | % | 8.53 | % | 7.74 | % | 8.84 | % | 8.77 | % | |||||||||||||||||||
| Common equity Tier I capital to RWA | 10.94 | % | 10.69 | % | 10.12 | % | 11.96 | % | 12.04 | % | |||||||||||||||||||
| Bryn Mawr Bank Corporation | |||||||||||||||||||||||||||||
| Tier I capital to RWA | 10.45 | % | 10.22 | % | 10.72 | % | 11.56 | % | 12.55 | % | |||||||||||||||||||
| Total (Tier II) capital to RWA | 12.35 | % | 12.13 | % | 12.61 | % | 13.50 | % | 13.21 | % | |||||||||||||||||||
| Tier I leverage ratio | 8.65 | % | 8.76 | % | 9.02 | % | 9.44 | % | 10.20 | % | |||||||||||||||||||
| Tangible equity ratio (1) | 8.29 | % | 8.10 | % | 8.17 | % | 8.45 | % | 9.11 | % | |||||||||||||||||||
| Common equity Tier I capital to RWA | 10.45 | % | 10.22 | % | 10.72 | % | 11.56 | % | 12.55 | % | |||||||||||||||||||
| Asset Quality Indicators | |||||||||||||||||||||||||||||
| Net loan and lease charge-offs (“NCO”s) | $ | 254 | $ | 422 | $ | 1,855 | $ | 224 | $ | 187 | $ | 676 | $ | 1,046 | |||||||||||||||
| Nonperforming loans and leases (“NPL”s) | $ | 9,617 | $ | 9,636 | $ | 10,244 | $ | 12,315 | $ | 8,996 | |||||||||||||||||||
| Other real estate owned (“OREO”) | 784 | 756 | 2,638 | 1,010 | 843 | ||||||||||||||||||||||||
| Total nonperforming assets (“NPA”s) | $ | 10,401 | $ | 10,392 | $ | 12,882 | $ | 13,325 | $ | 9,839 | |||||||||||||||||||
| Nonperforming loans and leases 30 or more days past due | $ | 5,599 | $ | 6,193 | $ | 5,678 | $ | 8,854 | $ | 7,302 | |||||||||||||||||||
| Performing loans and leases 30 to 89 days past due | 3,564 | 6,296 | 5,601 | 4,960 | 5,233 | ||||||||||||||||||||||||
| Performing loans and leases 90 or more days past due | – | – | – | – | – | ||||||||||||||||||||||||
| Total delinquent loans and leases | $ | 9,163 | $ | 12,489 | $ | 11,279 | $ | 13,814 | $ | 12,535 | |||||||||||||||||||
| Delinquent loans and leases to total loans and leases | 0.38 | % | 0.52 | % | 0.50 | % | 0.62 | % | 0.58 | % | |||||||||||||||||||
| Delinquent performing loans and leases to total loans and leases | 0.15 | % | 0.26 | % | 0.25 | % | 0.22 | % | 0.24 | % | |||||||||||||||||||
| NCOs / average loans and leases (annualized) | 0.04 | % | 0.07 | % | 0.33 | % | 0.04 | % | 0.04 | % | 0.06 | % | 0.10 | % | |||||||||||||||
| NPLs / total portfolio loans and leases | 0.40 | % | 0.41 | % | 0.45 | % | 0.55 | % | 0.42 | % | |||||||||||||||||||
| NPAs / total loans and leases and OREO | 0.43 | % | 0.44 | % | 0.56 | % | 0.60 | % | 0.45 | % | |||||||||||||||||||
| ALLL / NPLs | 177.14 | % | 174.81 | % | 154.79 | % | 129.40 | % | 166.29 | % | |||||||||||||||||||
| ALLL / portfolio loans | 0.70 | % | 0.71 | % | 0.70 | % | 0.71 | % | 0.69 | % | |||||||||||||||||||
| ALLL on originated loans and leases / Originated loans and leases (1) | 0.81 | % | 0.83 | % | 0.84 | % | 0.88 | % | 0.88 | % | |||||||||||||||||||
| (Total Allowance + Loan mark) / Total Gross portfolio loans and leases (1) | 1.30 | % | 1.37 | % | 1.44 | % | 1.52 | % | 1.60 | % | |||||||||||||||||||
| Troubled debt restructurings (“TDR”s) included in NPLs | $ | 1,779 | $ | 1,756 | $ | 1,935 | $ | 3,711 | $ | 3,960 | |||||||||||||||||||
| TDRs in compliance with modified terms | 4,984 | 4,893 | 4,880 | 4,062 | 4,078 | ||||||||||||||||||||||||
| Total TDRs | $ | 6,763 | $ | 6,649 | $ | 6,815 | $ | 7,773 | $ | 8,038 | |||||||||||||||||||
| (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) | ||||||||||||||||||||||
| June 30, 2016 | March 31, 2016 | December 31, 2015 | September 30, 2015 | June 30, 2015 | ||||||||||||||||||
| Assets | ||||||||||||||||||||||
| Cash and due from banks | $ | 13,710 | $ | 15,594 | $ | 18,452 | $ | 17,161 | $ | 20,258 | ||||||||||||
| Interest-bearing deposits with banks | 20,481 | 33,954 | 124,615 | 100,980 | 156,282 | |||||||||||||||||
| Cash and cash equivalents | 34,191 | 49,548 | 143,067 | 118,141 | 176,540 | |||||||||||||||||
| Investment securities, available for sale | 365,470 | 365,819 | 348,966 | 341,421 | 349,496 | |||||||||||||||||
| Investment securities, held to maturity | 2,915 | – | – | – | – | |||||||||||||||||
| Investment securities, trading | 3,521 | 3,642 | 3,950 | 3,451 | 4,029 | |||||||||||||||||
| Loans held for sale | 11,882 | 7,807 | 8,987 | 8,721 | 15,363 | |||||||||||||||||
| Portfolio loans and leases, originated | 2,090,070 | 2,015,683 | 1,883,869 | 1,804,834 | 1,692,027 | |||||||||||||||||
| Portfolio loans and leases, acquired | 333,751 | 363,158 | 385,119 | 423,930 | 461,236 | |||||||||||||||||
| Total portfolio loans and leases | 2,423,821 | 2,378,841 | 2,268,988 | 2,228,764 | 2,153,263 | |||||||||||||||||
| Less: Allowance for losses on originated loan and leases | (17,008 | ) | (16,817 | ) | (15,857 | ) | (15,900 | ) | (14,937 | ) | ||||||||||||
| Less: Allowance for losses on acquired loan and leases | (28 | ) | (28 | ) | – | (35 | ) | (22 | ) | |||||||||||||
| Total allowance for loan and lease losses | (17,036 | ) | (16,845 | ) | (15,857 | ) | (15,935 | ) | (14,959 | ) | ||||||||||||
| Net portfolio loans and leases | 2,406,785 | 2,361,996 | 2,253,131 | 2,212,829 | 2,138,304 | |||||||||||||||||
| Premises and equipment | 43,607 | 44,712 | 45,339 | 44,370 | 43,164 | |||||||||||||||||
| Accrued interest receivable | 8,144 | 8,205 | 7,869 | 7,744 | 7,518 | |||||||||||||||||
| Mortgage servicing rights | 4,646 | 5,182 | 5,142 | 5,031 | 4,970 | |||||||||||||||||
| Bank owned life insurance | 38,836 | 38,616 | 38,371 | 38,157 | 32,941 | |||||||||||||||||
| Federal Home Loan Bank (“FHLB”) stock | 10,618 | 12,142 | 12,942 | 11,742 | 11,542 | |||||||||||||||||
| Goodwill | 104,765 | 104,765 | 104,765 | 104,338 | 104,322 | |||||||||||||||||
| Intangible assets | 22,123 | 23,012 | 23,903 | 25,356 | 26,309 | |||||||||||||||||
| Other investments | 8,722 | 8,487 | 9,460 | 9,499 | 9,295 | |||||||||||||||||
| Other assets | 23,865 | 24,314 | 25,105 | 21,942 | 26,221 | |||||||||||||||||
| Total assets | $ | 3,090,090 | $ | 3,058,247 | $ | 3,030,997 | $ | 2,952,742 | $ | 2,950,014 | ||||||||||||
| Liabilities | ||||||||||||||||||||||
| Deposits | ||||||||||||||||||||||
| Noninterest-bearing | $ | 689,214 | $ | 643,492 | $ | 626,684 | $ | 605,607 | $ | 636,390 | ||||||||||||
| Interest-bearing | 1,720,477 | 1,700,550 | 1,626,041 | 1,634,237 | 1,624,257 | |||||||||||||||||
| Total deposits | 2,409,691 | 2,344,042 | 2,252,725 | 2,239,844 | 2,260,647 | |||||||||||||||||
| Short-term borrowings | 19,119 | 37,010 | 94,167 | 24,264 | 26,406 | |||||||||||||||||
| Long-term FHLB advances and other borrowings | 224,802 | 249,832 | 254,863 | 254,893 | 244,923 | |||||||||||||||||
| Subordinated notes | 29,505 | 29,491 | 29,479 | 29,466 | – | |||||||||||||||||
| Accrued interest payable | 1,846 | 1,294 | 1,851 | 1,444 | 1,292 | |||||||||||||||||
| Other liabilities | 32,660 | 31,401 | 32,201 | 34,676 | 35,648 | |||||||||||||||||
| Total liabilities | 2,717,623 | 2,693,070 | 2,665,286 | 2,584,587 | 2,568,916 | |||||||||||||||||
| Shareholders’ equity | ||||||||||||||||||||||
| Common stock | 20,972 | 20,949 | 20,931 | 20,854 | 20,848 | |||||||||||||||||
| Paid-in capital in excess of par value | 230,311 | 229,479 | 228,814 | 226,980 | 225,837 | |||||||||||||||||
| Less: common stock held in treasury, at cost | (66,200 | ) | (66,140 | ) | (58,144 | ) | (53,000 | ) | (34,346 | ) | ||||||||||||
| Accumulated other comprehensive income (loss), net of tax | 2,488 | 1,502 | (412 | ) | (11,040 | ) | (11,634 | ) | ||||||||||||||
| Retained earnings | 184,896 | 179,387 | 174,522 | 184,361 | 180,393 | |||||||||||||||||
| Total shareholders equity | 372,467 | 365,177 | 365,711 | 368,155 | 381,098 | |||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 3,090,090 | $ | 3,058,247 | $ | 3,030,997 | $ | 2,952,742 | $ | 2,950,014 | ||||||||||||
| Bryn Mawr Bank Corporation | ||||||||||||||||||||||
| Supplemental Balance Sheet Information (unaudited) | ||||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||
| Portfolio Loans and Leases as of | ||||||||||||||||||||||
| June 30, 2016 | March 31, 2016 | December 31, 2015 | September 30, 2015 | June 30, 2015 | ||||||||||||||||||
| Commercial mortgages | $ | 1,055,934 | $ | 1,044,415 | $ | 964,259 | $ | 971,983 | $ | 924,161 | ||||||||||||
| Home equity loans and lines | 202,989 | 205,896 | 209,473 | 212,258 | 211,982 | |||||||||||||||||
| Residential mortgages | 414,863 | 412,006 | 406,404 | 399,730 | 381,323 | |||||||||||||||||
| Construction | 133,313 | 119,193 | 90,421 | 82,820 | 88,122 | |||||||||||||||||
| Total real estate loans | 1,807,099 | 1,781,510 | 1,670,557 | 1,666,791 | 1,605,588 | |||||||||||||||||
| Commercial & Industrial | 538,684 | 523,053 | 524,515 | 488,977 | 472,702 | |||||||||||||||||
| Consumer | 21,561 | 21,427 | 22,129 | 22,350 | 25,123 | |||||||||||||||||
| Leases | 56,477 | 52,851 | 51,787 | 50,646 | 49,850 | |||||||||||||||||
| Total non-real estate loans and leases | 616,722 | 597,331 | 598,431 | 561,973 | 547,675 | |||||||||||||||||
| Total portfolio loans and leases | $ | 2,423,821 | $ | 2,378,841 | $ | 2,268,988 | $ | 2,228,764 | $ | 2,153,263 | ||||||||||||
| Nonperforming Loans and Leases as of | ||||||||||||||||||||||
| June 30, 2016 | March 31, 2016 | December 31, 2015 | September 30, 2015 | June 30, 2015 | ||||||||||||||||||
| Commercial mortgages | $ | 139 | $ | 872 | $ | 829 | $ | 931 | $ | 592 | ||||||||||||
| Home equity loans and lines | 3,011 | 1,953 | 2,027 | 1,661 | 1,605 | |||||||||||||||||
| Residential mortgages | 2,909 | 2,923 | 3,212 | 5,249 | 5,320 | |||||||||||||||||
| Construction | – | 12 | 34 | 34 | 139 | |||||||||||||||||
| Total nonperforming real estate loans | 6,059 | 5,760 | 6,102 | 7,875 | 7,656 | |||||||||||||||||
| Commercial & Industrial | 3,457 | 3,822 | 4,133 | 4,337 | 1,283 | |||||||||||||||||
| Consumer | 4 | – | – | 2 | – | |||||||||||||||||
| Leases | 97 | 54 | 9 | 101 | 57 | |||||||||||||||||
| Total nonperforming non-real estate loans and leases | 3,558 | 3,876 | 4,142 | 4,440 | 1,340 | |||||||||||||||||
| Total nonperforming portfolio loans and leases | $ | 9,617 | $ | 9,636 | $ | 10,244 | $ | 12,315 | $ | 8,996 | ||||||||||||
| Net Loan and Lease Charge-Offs (Recoveries) for the Three Months Ended | ||||||||||||||||||||||
| June 30, 2016 | March 31, 2016 | December 31, 2015 | September 30, 2015 | June 30, 2015 | ||||||||||||||||||
| Commercial mortgage | $ | (3 | ) | $ | 107 | $ | (4 | ) | $ | – | $ | 48 | ||||||||||
| Home equity loans and lines | 11 | 71 | 561 | (21 | ) | 11 | ||||||||||||||||
| Residential | 262 | (35 | ) | 239 | 11 | 43 | ||||||||||||||||
| Construction | (62 | ) | – | (1 | ) | (1 | ) | (1 | ) | |||||||||||||
| Total net charge-offs (recoveries) of real estate loans | 208 | 143 | 795 | (11 | ) | 101 | ||||||||||||||||
| Commercial & Industrial | (44 | ) | 25 | 902 | 38 | (10 | ) | |||||||||||||||
| Consumer | 30 | 20 | 55 | 26 | 35 | |||||||||||||||||
| Leases | 60 | 234 | 103 | 171 | 61 | |||||||||||||||||
| Total net charge-offs of non-real estate loans and leases | 46 | 279 | 1,060 | 235 | 86 | |||||||||||||||||
| Total net charge-offs | $ | 254 | $ | 422 | $ | 1,855 | $ | 224 | $ | 187 | ||||||||||||
| Bryn Mawr Bank Corporation | ||||||||||||||||||||||
| Supplemental Balance Sheet Information (unaudited) | ||||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||
| Investment Securities Available for Sale, at Fair Value | ||||||||||||||||||||||
| June 30, 2016 | March 31, 2016 | December 31, 2015 | September 30, 2015 | June 30, 2015 | ||||||||||||||||||
| U.S. Treasury securities | $ | 102 | $ | 102 | $ | 101 | $ | 102 | $ | 101 | ||||||||||||
| Obligations of the U.S. Government and agencies | 86,134 | 96,080 | 101,495 | 91,639 | 93,125 | |||||||||||||||||
| State & political subdivisions – tax-free | 39,047 | 39,502 | 41,442 | 43,388 | 40,967 | |||||||||||||||||
| State & political subdivisions – taxable | 532 | 1,093 | 524 | 742 | 351 | |||||||||||||||||
| Mortgage-backed securities | 186,354 | 183,127 | 158,689 | 155,509 | 161,283 | |||||||||||||||||
| Collateralized mortgage obligations | 36,702 | 29,106 | 29,799 | 32,953 | 36,094 | |||||||||||||||||
| Other debt securities | 1,450 | 1,700 | 1,691 | 1,896 | 1,894 | |||||||||||||||||
| Bond mutual funds | 11,774 | 11,725 | 11,810 | 11,798 | 11,920 | |||||||||||||||||
| Other investments | 3,375 | 3,384 | 3,415 | 3,394 | 3,761 | |||||||||||||||||
| Total | $ | 365,470 | $ | 365,819 | $ | 348,966 | $ | 341,421 | $ | 349,496 | ||||||||||||
| Unrealized Gain (Loss) on Investment Securities Available for Sale | ||||||||||||||||||||||
| June 30, 2016 | March 31, 2016 | December 31, 2015 | September 30, 2015 | June 30, 2015 | ||||||||||||||||||
| U.S. Treasury securities | $ | 1 | $ | 1 | $ | – | $ | 1 | $ | – | ||||||||||||
| Obligations of the U.S. Government and agencies | 1,183 | 984 | 153 | 712 | 182 | |||||||||||||||||
| State & political subdivisions – tax-free | 240 | 173 | 75 | 153 | 49 | |||||||||||||||||
| State & political subdivisions – taxable | 8 | 18 | (1 | ) | 2 | 1 | ||||||||||||||||
| Mortgage-backed securities | 3,958 | 3,026 | 1,267 | 2,591 | 1,542 | |||||||||||||||||
| Collateralized mortgage obligations | 496 | 330 | 43 | 339 | 223 | |||||||||||||||||
| Other debt securities | – | – | (9 | ) | (4 | ) | (6 | ) | ||||||||||||||
| Bond mutual funds | (182 | ) | (231 | ) | (146 | ) | (158 | ) | (36 | ) | ||||||||||||
| Other investments | (66 | ) | (155 | ) | (192 | ) | (193 | ) | 111 | |||||||||||||
| Total | $ | 5,638 | $ | 4,146 | $ | 1,190 | $ | 3,443 | $ | 2,066 | ||||||||||||
| Deposits | ||||||||||||||||||||||
| June 30, 2016 | March 31, 2016 | December 31, 2015 | September 30, 2015 | June 30, 2015 | ||||||||||||||||||
| Interest-bearing deposits: | ||||||||||||||||||||||
| Interest-bearing checking | $ | 333,425 | $ | 335,240 | $ | 338,861 | $ | 330,683 | $ | 328,606 | ||||||||||||
| Money market | 718,144 | 773,637 | 749,726 | 748,983 | 699,264 | |||||||||||||||||
| Savings | 217,877 | 190,477 | 187,299 | 192,995 | 189,120 | |||||||||||||||||
| Wholesale non-maturity deposits | 58,690 | 62,454 | 67,717 | 65,636 | 65,365 | |||||||||||||||||
| Wholesale time deposits | 113,274 | 131,145 | 53,185 | 57,671 | 67,894 | |||||||||||||||||
| Retail time deposits | 279,067 | 207,597 | 229,253 | 238,269 | 274,008 | |||||||||||||||||
| Total interest-bearing deposits | 1,720,477 | 1,700,550 | 1,626,041 | 1,634,237 | 1,624,257 | |||||||||||||||||
| Noninterest-bearing deposits | 689,214 | 643,492 | 626,684 | 605,607 | 636,390 | |||||||||||||||||
| Total deposits | $ | 2,409,691 | $ | 2,344,042 | $ | 2,252,725 | $ | 2,239,844 | $ | 2,260,647 | ||||||||||||
| Bryn Mawr Bank Corporation | |||||||||||||||||||||||||||||
| Detailed Income Statements (unaudited) | |||||||||||||||||||||||||||||
| (dollars in thousands, except per share data) | |||||||||||||||||||||||||||||
| For the Three Months Ended | For the Six Months Ended | ||||||||||||||||||||||||||||
| June 30, 2016 | March 31, 2016 | December 31, 2015 | September 30, 2015 | June 30, 2015 | June 30, 2016 | June 30, 2015 | |||||||||||||||||||||||
| Interest income: | |||||||||||||||||||||||||||||
| Interest and fees on loans and leases | $ | 27,679 | $ | 26,696 | $ | 26,080 | $ | 25,620 | $ | 25,568 | $ | 54,375 | $ | 50,732 | |||||||||||||||
| Interest on cash and cash equivalents | 42 | 46 | 63 | 107 | 124 | 88 | 239 | ||||||||||||||||||||||
| Interest on investment securities: | 1,565 | 1,527 | 1,623 | 1,302 | 1,301 | 3,092 | 2,776 | ||||||||||||||||||||||
| Total interest income | 29,286 | 28,269 | 27,766 | 27,029 | 26,993 | 57,555 | 53,747 | ||||||||||||||||||||||
| Interest expense: | |||||||||||||||||||||||||||||
| Interest on deposits | 1,402 | 1,076 | 1,046 | 1,076 | 1,062 | 2,478 | 2,090 | ||||||||||||||||||||||
| Interest on short-term borrowings | 20 | 17 | 9 | 8 | 10 | 37 | 31 | ||||||||||||||||||||||
| Interest on FHLB advances and other borrowings | 867 | 908 | 912 | 881 | 851 | 1,775 | 1,761 | ||||||||||||||||||||||
| Interest on subordinated notes | 370 | 366 | 370 | 231 | – | 736 | – | ||||||||||||||||||||||
| Total interest expense | 2,659 | 2,367 | 2,337 | 2,196 | 1,923 | 5,026 | 3,882 | ||||||||||||||||||||||
| Net interest income | 26,627 | 25,902 | 25,429 | 24,833 | 25,070 | 52,529 | 49,865 | ||||||||||||||||||||||
| Provision for loan and lease losses (the “Provision”) | 445 | 1,410 | 1,777 | 1,200 | 850 | 1,855 | 1,419 | ||||||||||||||||||||||
| Net interest income after Provision | 26,182 | 24,492 | 23,652 | 23,633 | 24,220 | 50,674 | 48,446 | ||||||||||||||||||||||
| Noninterest income: | |||||||||||||||||||||||||||||
| Fees for wealth management services | 9,431 | 8,832 | 8,995 | 9,194 | 9,600 | 18,263 | 18,705 | ||||||||||||||||||||||
| Insurance revenue | 845 | 1,276 | 842 | 1,065 | 817 | 2,121 | 1,838 | ||||||||||||||||||||||
| Service charges on deposits | 713 | 702 | 742 | 721 | 752 | 1,415 | 1,464 | ||||||||||||||||||||||
| Loan servicing and other fees | 539 | 492 | 502 | 397 | 597 | 1,031 | 1,188 | ||||||||||||||||||||||
| Net gain on sale of loans | 896 | 760 | 751 | 685 | 778 | 1,656 | 1,586 | ||||||||||||||||||||||
| Net (loss) gain on sale of investment securities available for sale | (43 | ) | (15 | ) | 58 | 60 | 3 | (58 | ) | 813 | |||||||||||||||||||
| Net (loss) gain on sale of other real estate owned | – | (76 | ) | 33 | – | 75 | (76 | ) | 90 | ||||||||||||||||||||
| Dividends on FHLB and FRB stocks | 263 | 214 | 330 | 138 | 299 | 477 | 914 | ||||||||||||||||||||||
| Other operating income | 1,176 | 1,023 | 1,415 | 1,090 | 1,256 | 2,199 | 2,344 | ||||||||||||||||||||||
| Total noninterest income | 13,820 | 13,208 | 13,668 | 13,350 | 14,177 | 27,028 | 28,942 | ||||||||||||||||||||||
| Noninterest expense: | |||||||||||||||||||||||||||||
| Salaries and wages | 12,197 | 11,738 | 11,700 | 10,941 | 11,064 | 23,935 | 21,934 | ||||||||||||||||||||||
| Employee benefits | 2,436 | 2,485 | 2,268 | 2,590 | 2,618 | 4,921 | 5,347 | ||||||||||||||||||||||
| Loss on pension termination | – | – | 17,377 | – | – | – | – | ||||||||||||||||||||||
| Occupancy and bank premises | 2,367 | 2,488 | 2,474 | 2,557 | 2,808 | 4,855 | 5,274 | ||||||||||||||||||||||
| Branch lease termination expense | – | – | 929 | – | – | – | – | ||||||||||||||||||||||
| Furniture, fixtures and equipment | 1,895 | 1,919 | 2,129 | 1,712 | 1,488 | 3,814 | 3,000 | ||||||||||||||||||||||
| Advertising | 372 | 284 | 656 | 410 | 479 | 656 | 1,036 | ||||||||||||||||||||||
| Amortization of intangible assets | 889 | 891 | 937 | 953 | 955 | 1,780 | 1,937 | ||||||||||||||||||||||
| Impairment of intangible assets | – | – | 387 | – | – | – | – | ||||||||||||||||||||||
| Impairment (recovery) of mortgage servicing rights (“MSRs”) | 599 | 83 | (17 | ) | 36 | (22 | ) | 682 | 51 | ||||||||||||||||||||
| Due diligence, merger-related and merger integration expenses | – | – | 1,860 | 1,015 | 1,294 | – | 3,795 | ||||||||||||||||||||||
| Professional fees | 946 | 813 | 1,010 | 843 | 827 | 1,759 | 1,500 | ||||||||||||||||||||||
| Pennsylvania bank shares tax | 640 | 638 | (46 | ) | 433 | 433 | 1,278 | 866 | |||||||||||||||||||||
| Information technology | 875 | 1,048 | 874 | 1,053 | 814 | 1,923 | 1,516 | ||||||||||||||||||||||
| Other operating expenses | 3,043 | 2,664 | 4,413 | 2,860 | 3,224 | 5,707 | 7,155 | ||||||||||||||||||||||
| Total noninterest expense | 26,259 | 25,051 | 46,951 | 25,403 | 25,982 | 51,310 | 53,411 | ||||||||||||||||||||||
| Income (loss) before income taxes | 13,743 | 12,649 | (9,631 | ) | 11,580 | 12,415 | 26,392 | 23,977 | |||||||||||||||||||||
| Income tax expense (benefit) | 4,823 | 4,375 | (3,276 | ) | 4,084 | 4,296 | 9,198 | 8,364 | |||||||||||||||||||||
| Net income (loss) | $ | 8,920 | $ | 8,274 | $ | (6,355 | ) | $ | 7,496 | $ | 8,119 | $ | 17,194 | $ | 15,613 | ||||||||||||||
| Per share data: | |||||||||||||||||||||||||||||
| Weighted average shares outstanding | 16,812,219 | 16,848,202 | 17,129,234 | 17,572,421 | 17,713,794 | 16,830,211 | 17,630,263 | ||||||||||||||||||||||
| Dilutive common shares | 212,818 | 34,991 | – | 261,877 | 340,869 | 123,905 | 349,163 | ||||||||||||||||||||||
| Adjusted weighted average diluted shares | 17,025,037 | 16,883,193 | 17,129,234 | 17,834,298 | 18,054,663 | 16,954,116 | 17,979,426 | ||||||||||||||||||||||
| Basic earnings (loss) per common share | $ | 0.53 | $ | 0.49 | $ | (0.37 | ) | $ | 0.43 | $ | 0.46 | $ | 1.02 | $ | 0.89 | ||||||||||||||
| Diluted earnings (loss) per common share | $ | 0.52 | $ | 0.49 | $ | (0.37 | ) | $ | 0.42 | $ | 0.45 | $ | 1.01 | $ | 0.87 | ||||||||||||||
| Dividend declared per share | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.19 | $ | 0.40 | $ | 0.38 | |||||||||||||||
| Effective tax rate | 35.09 | % | 34.59 | % | 34.02 | % | 35.27 | % | 34.60 | % | 34.85 | % | 34.88 | % | |||||||||||||||
| Bryn Mawr Bank Corporation | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Tax-Equivalent Net Interest Margin (unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (dollars in thousands, except per share data) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| For The Three Months Ended | For The Six Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| June 30, 2016 | March 31, 2016 | December 31, 2015 | September 30, 2015 | June 30, 2015 | June 30, 2016 | June 30, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (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 | $ | 44,950 | $ | 42 | 0.38 | % | $ | 39,050 | $ | 46 | 0.47 | % | $ | 90,832 | $ | 63 | 0.28 | % | $ | 165,723 | $ | 107 | 0.26 | % | $ | 182,099 | $ | 124 | 0.27 | % | $ | 42,000 | $ | 88 | 0.42 | % | $ | 194,328 | $ | 239 | 0.25 | % | ||||||||||||||||||||||||
| Investment securities – available for sale: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Taxable | 325,893 | 1,433 | 1.77 | % | 316,353 | 1,397 | 1.78 | % | 307,524 | 1,432 | 1.85 | % | 310,582 | 1,172 | 1.50 | % | 310,011 | 1,184 | 1.53 | % | 321,123 | 2,838 | 1.78 | % | 322,421 | 2,520 | 1.58 | % | ||||||||||||||||||||||||||||||||||||||
| Tax-exempt | 39,193 | 187 | 1.92 | % | 40,658 | 191 | 1.89 | % | 43,144 | 195 | 1.79 | % | 41,424 | 186 | 1.78 | % | 37,035 | 157 | 1.70 | % | 39,925 | 378 | 1.90 | % | 36,184 | 360 | 2.01 | % | ||||||||||||||||||||||||||||||||||||||
| Total investment securities – available for sale | 365,086 | 1,620 | 1.78 | % | 357,011 | 1,588 | 1.79 | % | 350,668 | 1,627 | 1.84 | % | 352,006 | 1,358 | 1.53 | % | 347,046 | 1,341 | 1.55 | % | 361,048 | 3,216 | 1.79 | % | 358,605 | 2,880 | 1.62 | % | ||||||||||||||||||||||||||||||||||||||
| Investment securities – held to maturity | 2,427 | 4 | 0.66 | % | – | – | – | 0.00 | % | – | – | – | – | 1,214 | – | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Investment securities – trading | 3,640 | 2 | 0.22 | % | 3,946 | 2 | 0.20 | % | 3,571 | 60 | 6.67 | % | 4,022 | 5 | 0.49 | % | 4,034 | 11 | 1.09 | % | 3,793 | – | 3,966 | 15 | 0.76 | % | ||||||||||||||||||||||||||||||||||||||||
| Loans and leases * | 2,412,643 | 27,761 | 4.63 | % | 2,308,584 | 26,778 | 4.67 | % | 2,247,720 | 26,158 | 4.62 | % | 2,191,652 | 25,698 | 4.65 | % | 2,118,106 | 25,623 | 4.85 | % | 2,360,613 | 54,539 | 4.65 | % | 2,100,592 | 50,850 | 4.88 | % | ||||||||||||||||||||||||||||||||||||||
| Total interest-earning assets | 2,828,746 | 29,429 | 4.18 | % | 2,708,591 | 28,414 | 4.22 | % | 2,692,791 | 27,908 | 4.11 | % | 2,713,403 | 27,168 | 3.97 | % | 2,651,285 | 27,099 | 4.10 | % | 2,768,668 | 57,843 | 4.20 | % | 2,657,491 | 53,984 | 4.10 | % | ||||||||||||||||||||||||||||||||||||||
| Cash and due from banks | 16,413 | 16,501 | 18,005 | 17,160 | 16,222 | 16,457 | 17,649 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Less: allowance for loan and lease losses | (17,271 | ) | (16,239 | ) | (16,106 | ) | (15,066 | ) | (14,346 | ) | (16,755 | ) | (14,605 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other assets | 262,065 | 264,295 | 264,321 | 265,811 | 257,540 | 263,180 | 253,873 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total assets | $ | 3,089,953 | $ | 2,973,148 | $ | 2,959,011 | $ | 2,981,308 | $ | 2,910,701 | $ | 3,031,550 | $ | 2,914,408 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest-bearing deposits: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Savings, NOW and market rate deposits | $ | 1,273,964 | $ | 589 | 0.19 | % | $ | 1,279,630 | $ | 569 | 0.18 | % | $ | 1,260,575 | $ | 565 | 0.18 | % | $ | 1,260,529 | $ | 584 | 0.18 | % | $ | 1,224,544 | $ | 575 | 0.19 | % | $ | 1,276,797 | $ | 1,158 | 0.18 | % | $ | 1,238,399 | $ | 1,169 | 0.19 | % | ||||||||||||||||||||||||
| Wholesale deposits | 196,517 | 361 | 0.74 | % | 137,201 | 233 | 0.68 | % | 119,394 | 186 | 0.62 | % | 133,277 | 203 | 0.60 | % | 130,497 | 195 | 0.60 | % | 166,859 | 594 | 0.72 | % | 135,282 | 383 | 0.57 | % | ||||||||||||||||||||||||||||||||||||||
| Retail time deposits | 246,771 | 452 | 0.74 | % | 216,820 | 274 | 0.51 | % | 231,605 | 295 | 0.51 | % | 251,170 | 289 | 0.46 | % | 273,718 | 292 | 0.43 | % | 231,795 | 726 | 0.63 | % | 270,775 | 538 | 0.40 | % | ||||||||||||||||||||||||||||||||||||||
| Total interest-bearing deposits | 1,717,252 | 1,402 | 0.33 | % | 1,633,651 | 1,076 | 0.26 | % | 1,611,574 | 1,046 | 0.26 | % | 1,644,976 | 1,076 | 0.26 | % | 1,628,759 | 1,062 | 0.26 | % | 1,675,451 | 2,478 | 0.30 | % | 1,644,456 | 2,090 | 0.26 | % | ||||||||||||||||||||||||||||||||||||||
| Borrowings: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Short-term borrowings | 32,328 | 20 | 0.25 | % | 34,158 | 17 | 0.20 | % | 26,092 | 9 | 0.14 | % | 28,166 | 8 | 0.11 | % | 34,980 | 10 | 0.11 | % | 33,243 | 37 | 0.22 | % | 45,038 | 31 | 0.14 | % | ||||||||||||||||||||||||||||||||||||||
| Long-term FHLB advances and other borrowings | 236,248 | 867 | 1.48 | % | 250,015 | 908 | 1.46 | % | 254,880 | 912 | 1.42 | % | 248,606 | 881 | 1.41 | % | 249,678 | 851 | 1.37 | % | 243,131 | 1,775 | 1.47 | % | 257,963 | 1,761 | 1.38 | % | ||||||||||||||||||||||||||||||||||||||
| Subordinated notes | 29,496 | 370 | 5.05 | % | 29,482 | 366 | 4.99 | % | 29,471 | 370 | 4.98 | % | 18,190 | 231 | 5.04 | % | – | – | 0.00 | % | 29,489 | 736 | 5.02 | % | – | – | 0.00 | % | ||||||||||||||||||||||||||||||||||||||
| Total borrowings | 298,072 | 1,257 | 1.70 | % | 313,655 | 1,291 | 1.66 | % | 310,443 | 1,291 | 1.65 | % | 294,962 | 1,120 | 1.51 | % | 284,658 | 861 | 1.21 | % | 305,863 | 2,548 | 1.68 | % | 303,001 | 1,792 | 1.19 | % | ||||||||||||||||||||||||||||||||||||||
| Total interest-bearing liabilities | 2,015,324 | 2,659 | 0.53 | % | 1,947,306 | 2,367 | 0.49 | % | 1,922,017 | 2,337 | 0.48 | % | 1,939,938 | 2,196 | 0.45 | % | 1,913,417 | 1,923 | 0.40 | % | 1,981,314 | 5,026 | 0.51 | % | 1,947,457 | 3,882 | 0.40 | % | ||||||||||||||||||||||||||||||||||||||
| Noninterest-bearing deposits | 675,710 | 631,047 | 634,969 | 625,547 | 580,240 | 653,379 | 557,386 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other liabilities | 32,804 | 33,923 | 36,665 | 39,219 | 37,890 | 33,363 | 34,332 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total noninterest-bearing liabilities | 708,514 | 664,970 | 671,634 | 664,766 | 618,130 | 686,742 | 591,718 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total liabilities | 2,723,838 | 2,612,276 | 2,593,651 | 2,604,704 | 2,531,547 | 2,668,056 | 2,539,175 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Shareholders’ equity | 366,115 | 360,872 | 365,360 | 376,604 | 379,154 | 363,494 | 375,233 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 3,089,953 | $ | 2,973,148 | $ | 2,959,011 | $ | 2,981,308 | $ | 2,910,701 | $ | 3,031,550 | $ | 2,914,408 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest income to earning assets | 4.18 | % | 4.22 | % | 4.11 | % | 3.97 | % | 4.10 | % | 4.20 | % | 4.10 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net interest spread | 3.65 | % | 3.73 | % | 3.63 | % | 3.52 | % | 3.70 | % | 3.69 | % | 3.70 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Effect of noninterest-bearing sources | 0.16 | % | 0.14 | % | 0.14 | % | 0.13 | % | 0.11 | % | 0.15 | % | 0.10 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Tax-equivalent net interest margin | $ | 26,770 | 3.81 | % | $ | 26,047 | 3.87 | % | $ | 25,571 | 3.77 | % | $ | 24,972 | 3.65 | % | $ | 25,176 | 3.81 | % | $ | 52,817 | 3.84 | % | $ | 50,102 | 3.80 | % | ||||||||||||||||||||||||||||||||||||||
| Tax-equivalent adjustment | $ | 143 | 0.02 | % | $ | 145 | 0.02 | % | $ | 142 | 0.02 | % | $ | 139 | 0.02 | % | $ | 106 | 0.02 | % | $ | 288 | 0.02 | % | $ | 237 | 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 | $ | 1,076 | 0.18 | % | $ | 953 | 0.17 | % | $ | 707 | 0.12 | % | $ | 763 | 0.14 | % | $ | 1,246 | 0.24 | % | $ | 2,029 | 0.17 | % | $ | 2,373 | 0.23 | % | ||||||||||||||||||||||||||||||||||||||
| Retail time deposits | (61 | ) | -0.10 | % | (110 | ) | -0.20 | % | (123 | ) | -0.21 | % | (188 | ) | -0.30 | % | (205 | ) | -0.30 | % | (171 | ) | -0.15 | % | (450 | ) | -0.34 | % | ||||||||||||||||||||||||||||||||||||||
| Short-term borrowings | – | 0.00 | % | (12 | ) | -0.14 | % | (35 | ) | -0.53 | % | (35 | ) | -0.49 | % | (35 | ) | -0.40 | % | (12 | ) | -0.07 | % | (69 | ) | -0.31 | % | |||||||||||||||||||||||||||||||||||||||
| Long-term FHLB advances and other borrowings | (30 | ) | -0.05 | % | (30 | ) | -0.05 | % | (30 | ) | -0.05 | % | (30 | ) | -0.05 | % | (30 | ) | -0.05 | % | (60 | ) | -0.05 | % | (66 | ) | -0.05 | % | ||||||||||||||||||||||||||||||||||||||
| Net interest income from fair value marks | $ | 1,167 | $ | 1,105 | $ | 895 | $ | 1,016 | $ | 1,516 | $ | 2,272 | $ | 2,958 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Purchase accounting effect on tax-equivalent margin | 0.17 | % | 0.16 | % | 0.13 | % | 0.15 | % | 0.23 | % | 0.17 | % | 0.22 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| * 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 Six Months Ended | ||||||||||||||||||||||||||
| June 30, 2016 | March 31, 2016 | December 31, 2015 | September 30, 2015 | June 30, 2015 | June 30, 2016 | June 30, 2015 | |||||||||||||||||||||
| Reconciliation of Net Income to Net Income (core): | |||||||||||||||||||||||||||
| Net income (loss) (a GAAP measure) | $ | 8,920 | $ | 8,274 | $ | (6,355 | ) | $ | 7,496 | $ | 8,119 | $ | 17,194 | $ | 15,613 | ||||||||||||
| Less: Tax-effected non-core noninterest income: | |||||||||||||||||||||||||||
| Loss (gain) on sale of investment securities available for sale | 28 | 10 | (38 | ) | (39 | ) | (2 | ) | 38 | (528 | ) | ||||||||||||||||
| Add: Tax-effected non-core noninterest expense items: | |||||||||||||||||||||||||||
| Loss on pension termination | – | – | 11,295 | – | – | – | – | ||||||||||||||||||||
| Severance expense (Salaries and wages) | – | – | 142 | 124 | – | – | – | ||||||||||||||||||||
| Branch lease termination expense | – | – | 604 | – | – | – | – | ||||||||||||||||||||
| Debt and swap prepayment penalty (Other operating expenses) | – | – | 397 | – | – | – | 339 | ||||||||||||||||||||
| Impairment of intangible assets | – | – | 252 | – | – | – | – | ||||||||||||||||||||
| Due diligence, merger-related and merger integration expenses | – | – | 1,209 | 660 | 841 | – | 2,467 | ||||||||||||||||||||
| Net income (core) (a non-GAAP measure) | $ | 8,948 | $ | 8,284 | $ | 7,506 | $ | 8,241 | $ | 8,958 | $ | 17,232 | $ | 17,891 | |||||||||||||
| Calculation of Basic and Diluted Earnings per Common Share (core): | |||||||||||||||||||||||||||
| Weighted average common shares outstanding | 16,812,219 | 16,848,202 | 17,129,234 | 17,572,421 | 17,713,794 | 16,830,211 | 17,630,263 | ||||||||||||||||||||
| Dilutive common shares | 214,656 | 63,617 | 112,783 | 261,877 | 340,869 | 124,824 | 349,163 | ||||||||||||||||||||
| Adjusted weighted average diluted shares | 17,026,875 | 16,911,819 | 17,242,017 | 17,834,298 | 18,054,663 | 16,955,035 | 17,979,426 | ||||||||||||||||||||
| Basic earnings per common share (core) (a non-GAAP measure) | $ | 0.53 | $ | 0.49 | $ | 0.44 | $ | 0.47 | $ | 0.51 | $ | 1.02 | $ | 1.01 | |||||||||||||
| Diluted earnings per common share (core) (a non-GAAP measure) | $ | 0.53 | $ | 0.49 | $ | 0.44 | $ | 0.46 | $ | 0.50 | $ | 1.02 | $ | 1.00 | |||||||||||||
| Calculation of Return on Average Tangible Equity: | |||||||||||||||||||||||||||
| Net income (loss) | $ | 8,920 | $ | 8,274 | $ | (6,355 | ) | $ | 7,496 | $ | 8,119 | $ | 17,194 | $ | 15,613 | ||||||||||||
| Add: Tax-effected amortization and impairment of intangible assets | 578 | 579 | 861 | 619 | 621 | 1,157 | 1,259 | ||||||||||||||||||||
| Net tangible income (numerator) | $ | 9,498 | $ | 8,853 | $ | (5,494 | ) | $ | 8,115 | $ | 8,740 | $ | 18,351 | $ | 16,872 | ||||||||||||
| Average shareholders’ equity | $ | 366,115 | $ | 360,872 | $ | 365,360 | $ | 376,604 | $ | 379,154 | $ | 363,494 | $ | 375,233 | |||||||||||||
| Less: Average goodwill and intangible assets | (127,402 | ) | (128,296 | ) | (129,292 | ) | (130,241 | ) | (129,116 | ) | (127,849 | ) | (126,568 | ) | |||||||||||||
| Net average tangible equity (denominator) | $ | 238,713 | $ | 232,576 | $ | 236,068 | $ | 246,363 | $ | 250,038 | $ | 235,645 | $ | 248,665 | |||||||||||||
| Return on tangible equity (a non-GAAP measure) | 16.00 | % | 15.31 | % | -9.23 | % | 13.07 | % | 14.02 | % | 15.66 | % | 13.68 | % | |||||||||||||
| Calculation of Tangible Equity Ratio: | |||||||||||||||||||||||||||
| Total shareholders’ equity | $ | 372,467 | $ | 365,177 | $ | 365,711 | $ | 368,155 | $ | 381,098 | |||||||||||||||||
| Less: Goodwill and intangible assets | (126,888 | ) | (127,777 | ) | (128,668 | ) | (129,694 | ) | (130,631 | ) | |||||||||||||||||
| Net tangible equity (numerator) | $ | 245,579 | $ | 237,400 | $ | 237,043 | $ | 238,461 | $ | 250,467 | |||||||||||||||||
| Total assets | $ | 3,090,090 | $ | 3,058,247 | $ | 3,030,997 | $ | 2,952,742 | $ | 2,950,014 | |||||||||||||||||
| Less: Goodwill and intangible assets | (126,888 | ) | (127,777 | ) | (128,668 | ) | (129,694 | ) | (130,631 | ) | |||||||||||||||||
| Tangible assets (denominator) | $ | 2,963,202 | $ | 2,930,470 | $ | 2,902,329 | $ | 2,823,048 | $ | 2,819,383 | |||||||||||||||||
| Tangible equity ratio | 8.29 | % | 8.10 | % | 8.17 | % | 8.45 | % | 8.88 | % | |||||||||||||||||
| Calculation of Efficiency Ratio: | |||||||||||||||||||||||||||
| Noninterest expense | $ | 26,259 | $ | 25,051 | $ | 46,951 | $ | 25,403 | $ | 25,982 | $ | 51,310 | $ | 53,411 | |||||||||||||
| Less: certain noninterest expense items*: | |||||||||||||||||||||||||||
| Loss on pension termination | – | – | (17,377 | ) | – | – | – | – | |||||||||||||||||||
| Severance expense (Salaries and wages) | – | – | (218 | ) | (191 | ) | – | – | – | ||||||||||||||||||
| Branch lease termination expense | – | – | (929 | ) | – | – | – | – | |||||||||||||||||||
| Debt and swap prepayment penalty (Other operating expenses) | – | – | (611 | ) | – | – | – | (522 | ) | ||||||||||||||||||
| Amortization of intangibles | (889 | ) | (891 | ) | (937 | ) | (953 | ) | (955 | ) | (1,780 | ) | (1,937 | ) | |||||||||||||
| Impairment of intangible assets | – | – | (388 | ) | – | – | – | – | |||||||||||||||||||
| Due diligence, merger-related and merger integration expenses | – | – | (1,860 | ) | (1,015 | ) | (1,294 | ) | – | (3,795 | ) | ||||||||||||||||
| Noninterest expense (adjusted) (numerator) | $ | 25,370 | $ | 24,160 | $ | 24,631 | $ | 23,244 | $ | 23,733 | $ | 49,530 | $ | 47,157 | |||||||||||||
| Noninterest income | $ | 13,820 | $ | 13,208 | $ | 13,668 | $ | 13,350 | $ | 14,177 | $ | 27,028 | $ | 28,942 | |||||||||||||
| Less: non-core noninterest income items: | |||||||||||||||||||||||||||
| Loss (gain) on sale of investment securities available for sale | 43 | 15 | (58 | ) | (60 | ) | (3 | ) | 58 | (812 | ) | ||||||||||||||||
| Noninterest income (core) | $ | 13,863 | $ | 13,223 | $ | 13,610 | $ | 13,290 | $ | 14,174 | $ | 27,086 | $ | 28,130 | |||||||||||||
| Net interest income | 26,627 | 25,902 | 25,429 | 24,833 | 25,070 | 52,529 | 49,865 | ||||||||||||||||||||
| Noninterest income (core) and net interest income (denominator) | $ | 40,490 | $ | 39,125 | $ | 39,039 | $ | 38,123 | $ | 39,244 | $ | 79,615 | $ | 77,995 | |||||||||||||
| Efficiency ratio | 62.66 | % | 61.75 | % | 63.09 | % | 60.97 | % | 60.48 | % | 62.21 | % | 60.46 | % | |||||||||||||
| * 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 | $ | 17,036 | $ | 16,845 | $ | 15,857 | $ | 15,935 | $ | 14,959 | |||||||||||||||||
| less: Allowance on acquired loans | 28 | 28 | – | 35 | 22 | ||||||||||||||||||||||
| Allowance on originated loans and leases | $ | 17,008 | $ | 16,817 | $ | 15,857 | $ | 15,900 | $ | 14,937 | |||||||||||||||||
| Total Allowance | $ | 17,036 | $ | 16,845 | $ | 15,857 | $ | 15,935 | $ | 14,959 | |||||||||||||||||
| Loan mark on acquired loans | 14,566 | 15,930 | 17,108 | 18,179 | 19,816 | ||||||||||||||||||||||
| Total Allowance + Loan mark | $ | 31,602 | $ | 32,775 | $ | 32,965 | $ | 34,114 | $ | 34,775 | |||||||||||||||||
| Total Portfolio loans and leases | $ | 2,423,821 | $ | 2,378,841 | $ | 2,268,988 | $ | 2,228,764 | $ | 2,153,263 | |||||||||||||||||
| less: Originated loans and leases | 2,090,070 | 2,015,683 | 1,883,869 | 1,804,835 | 1,692,041 | ||||||||||||||||||||||
| Net acquired loans | $ | 333,751 | $ | 363,158 | $ | 385,119 | $ | 423,929 | $ | 461,222 | |||||||||||||||||
| add: Loan mark on acquired loans | 14,566 | 15,930 | 17,108 | 18,179 | 19,816 | ||||||||||||||||||||||
| Gross acquired loans (excludes loan mark) | $ | 348,317 | $ | 379,088 | $ | 402,227 | $ | 442,108 | $ | 481,038 | |||||||||||||||||
| Originated loans and leases | 2,090,070 | 2,015,683 | 1,883,869 | 1,804,835 | 1,692,041 | ||||||||||||||||||||||
| Total Gross portfolio loans and leases | $ | 2,438,387 | $ | 2,394,771 | $ | 2,286,096 | $ | 2,246,943 | $ | 2,173,079 | |||||||||||||||||
CONTACT: FOR MORE INFORMATION CONTACT: Frank Leto, President, CEO 610-581-4730 Mike Harrington, CFO 610-526-2466