Bryn Mawr Bank Corporation Reports First Quarter Net Income of $9.0 Million, Improved Net Interest Margin

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
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