BRYN MAWR, Pa., July 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 $9.4 million and diluted earnings per share of $0.55 for the three months ended June 30, 2017, as compared to net income of $9.0 million, or $0.53 diluted earnings per share, for the three months ended March 31, 2017 and $8.9 million, or $0.52 diluted earnings per share, for the three months ended June 30, 2016. Included in net income for the three months ended June 30, 2017 and March 31, 2017 were pre-tax due diligence and merger-related expenses of $1.2 million and $511 thousand, respectively, with the 2017 figures primarily related to the pending merger with Royal Bancshares of Pennsylvania, Inc. (“Royal Bank”).
On a non-GAAP basis, core net income, which excludes certain non-core income and expense items, as detailed in the appendix to this earnings release, was $10.2 million, or $0.59 diluted earnings per share, for the three months ended June 30, 2017 as compared to $9.4 million, or $0.55 diluted earnings per share, for the three months ended March 31, 2017 and $9.0 million, or $0.53 diluted earnings per share, for the three months ended June 30, 2016. Management believes the core net income measure is important in evaluating the Corporation’s performance on a more comparable basis between periods. A reconciliation of this and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release.
“We are very pleased with the results for the second quarter,” commented Frank Leto, President and Chief Executive Officer, continuing, “For the first time in the Corporation’s history, our core net income exceeded $10 million for the quarter and our wealth assets have exceeded the $12 billion mark.”
Mr. Leto continued, “Not only is the growth in our loan portfolio strong, increasing 4.4% from March 31, 2017 to June 30, 2017, the credit quality of the portfolio remains stable, as evidenced by the reduced provision for loan and lease losses recorded this quarter. In addition, noninterest income was boosted by the outstanding performance of our newly established capital markets group, which opened for business in May 2017 and has already recorded revenue of $953 thousand for the quarter.”
On the corporate development front, Mr. Leto noted, “The Royal Bank merger preparations are continuing, with the close of the transaction expected in the third quarter of 2017. In addition, the May 2017 acquisition of Hirshorn Boothby, located in Chestnut Hill, Philadelphia, along with the opening of our Princeton wealth management office, positions us well to capitalize on the expanded footprint that will be created by the addition of the Royal Bank branch network.”
The acquisition of Royal Bank is subject to applicable regulatory approvals and is also subject to certain closing conditions.
On July 20, 2017, the Board of Directors of the Corporation declared a quarterly dividend of $0.22 per share, payable September 1, 2017 to shareholders of record as of August 2, 2017. This represents a $0.01, or 4.8%, increase from the previous quarter.
SIGNIFICANT ITEMS OF NOTE
Results of Operations – Second Quarter 2017 Compared to First Quarter 2017
- Net income for the three months ended June 30, 2017 was $9.4 million, or $0.55 diluted earnings per share, as compared to $9.0 million, or $0.53 diluted earnings per share for the three months ended March 31, 2017. Contributing to the increase was a $562 thousand increase in net interest income, a $374 thousand decrease in provision for loan and lease loss (the “Provision”) and an increase of $504 thousand in fees for wealth management services and the addition of $953 thousand in capital markets revenue, related to our newly-established capital markets group. Partially offsetting these items were increases of $1.1 million in salaries and wages, $725 thousand in due diligence, merger-related and merger integration costs and $477 thousand in other operating expenses.
- Net interest income for the three months ended June 30, 2017 was $28.0 million, an increase of $562 thousand from $27.4 million for the three months ended March 31, 2017. Average interest-earning assets increased by $82.6 million, with average loans increasing $59.9 million and average available for sale investment securities increasing $34.4 million. The tax-equivalent yield earned on available for sale investment securities increased by 9 basis points while the tax-equivalent yield earned on loans decreased by 5 basis points. In conjunction with the Royal Bank merger, management intends to immediately sell certain acquired investment securities. In anticipation of these investment sales, management has begun purchasing certain securities that more closely align with the management’s desired liquidity and interest rate risk profile.
- The tax-equivalent net interest margin of 3.68% for the second quarter of 2017 decreased 6 basis points from 3.74% for the first quarter of 2017. During the second quarter of 2017, the accretion of purchase accounting adjustments contributed a 6 basis point increase in the tax-equivalent net interest margin as compared to an 11 basis point increase for the three months ended March 31, 2017. Excluding the effect of the accretion of purchase accounting adjustments, the tax-equivalent net interest margin remained relatively flat quarter over quarter with the tax-equivalent yield on average loans increasing 1 basis point over the first quarter and the tax-equivalent yield on available for sale investment securities increasing 9 basis points, as management positions the investment portfolio in anticipation of the Royal Bank merger as described in the previous bullet point.
- Non-interest income for the three months ended June 30, 2017 increased by $1.6 million from the first quarter of 2017. Largely contributing to this increase was an increase of $504 thousand in revenue for wealth management services, $310 thousand of which was related to tax services provided during the quarter, a $180 thousand increase in insurance revenues attributed to the May 2017 acquisition of Hirshorn Boothby, and a $953 thousand contribution from the newly-established capital markets group related to interest-rate swap fee income.
- Non-interest expense for the three months ended June 30, 2017 increased $1.8 million, to $28.5 million, as compared to $26.7 million for the first quarter of 2017. The significant contributors to this increase included a $1.1 million increase in salaries and wages largely related to staffing additions in connection with the Hirshorn Boothby acquisition, the Capital Markets initiative and the Princeton wealth management office, as well as increases in incentive compensation along with an increase of $725 thousand in due diligence, merger-related and merger integration costs, most of which was related to the Royal Bank merger. Additionally, other operating expenses increased by $477 thousand related to a $117 thousand increase in deferred compensation expense associated with the valuation of Corporation stock held in the deferred compensation trusts and $200 thousand increase in impairment of other real estate owned (“OREO”) and repossessed assets. Partially offsetting these increases was a $367 thousand decrease in Pennsylvania bank shares tax resulting from changes in revenue apportionment for 2016 and tax credits connected to contributions to local schools under the Pennsylvania Educational Improvement Tax Credit (EITC) program.
- For the three months ended June 30, 2017, net loan and lease charge-offs totaled $625 thousand, as compared to $670 thousand for the first quarter of 2017. The Provision for the three months ended June 30, 2017 was a release of $83 thousand as compared to a Provision of $291 thousand for the first quarter of 2017. The decrease in the Provision was primarily related to a decline in certain historic charge-off rates over the look-back period, along with improvements in certain economic indicators which factor into the calculation of the overall allowance for loan and lease losses (the “Allowance”) requirement.
- Income tax expense for the second quarter of 2017 increased by $270 thousand as compared to the first quarter of 2016. The 33 basis point increase in the effective tax rate from the first quarter of 2017 to the second quarter of 2017 was primarily the result of certain non-deductible merger expenses incurred in the second quarter of 2017.
Results of Operations – Second Quarter 2017 Compared to Second Quarter 2016
- Net income for the three months ended June 30, 2017 was $9.4 million, or $0.55 diluted earnings per share, as compared to $8.9 million, or diluted earnings per share of $0.52, for the same period in 2016. Contributing to the increase in net income was an increase of $1.3 million in net interest income, a decrease of $528 thousand in Provision, as well as increases of $376 thousand in fees for wealth management services and $953 thousand in capital markets revenue. Partially offsetting these changes were decreases of $337 thousand in gain on sale of loans, along with increases of $1.4 million in salaries and wages and $1.2 million in due diligence, merger-related and merger integration costs.
- Net interest income for the three months ended June 30, 2017 was $28.0 million, an increase of $1.3 million, or 5.0%, from $26.6 million for the same period in 2016. The accretion of purchase accounting adjustments positively impacted the tax-equivalent net interest income recorded for the second quarter of 2017 by $450 thousand, as compared to $1.2 million for the same period in 2016. Average loans and leases for the three months ended June 30, 2017 increased by $203.0 million from the same period in 2016. Excluding the effect of the accretion of purchase accounting adjustments, the tax-equivalent yield on loans and leases decreased 2 basis points. The net effect of the yield decrease and volume increase on average loans and leases was a $2.2 million increase in tax-equivalent interest income on loans. Average available for sale investment securities increased by $55.0 million for the three months ended June 30, 2017 as compared to the same period in 2016, and experienced a 22 basis point tax-equivalent yield increase. The increase in volume and yield on available for sale investment securities resulted in a $470 thousand increase in tax-equivalent interest income for the second quarter of 2017 as compared to the same period in 2016. Partially offsetting the increase in average loans and available for sale investment securities was a $136.4 million increase in average interest-bearing deposits accompanied by a 10 basis point increase in rate paid on deposits resulting in a $581 thousand increase in interest expense for the second quarter of 2017 as compared to the same period in 2016.
- The tax-equivalent net interest margin of 3.68% for the three months ended June 30, 2017 was a 13 basis point decrease from 3.81% for the same period in 2016. The decrease was largely related to the lower contribution to the tax-equivalent net interest margin from the accretion of purchase accounting adjustments. For the second quarter of 2017, the accretion of purchase accounting adjustments contributed 6 basis points to the tax-equivalent net interest margin as compared to 17 basis points for the same period in 2016. Excluding the effect of the accretion of purchase accounting adjustments, the tax-equivalent net interest margin decreased 2 basis points over the prior year quarter with the tax-equivalent yield on average loans decreasing 2 basis points over the prior year quarter. The tax-equivalent yield on available for sale investment securities increased 22 basis points, as management positions the investment portfolio in anticipation of the Royal Bank merger. The slight decline in the margin was also attributed to a 10 basis point increase in rate paid on deposits.
- Non-interest income for the three months ended June 30, 2017 increased by $1.0 million from the same period in 2016. An increase of $376 thousand in fees for wealth management services, as a 25.1% increase in wealth assets from the June 30, 2016 level, and the $953 thousand in revenue generated by the Capital Markets initiative, were partially offset by a decrease of $337 thousand in gain on sale of loans, as origination activity has slowed from the same period in 2016.
- Non-interest expense for the three months ended June 30, 2017 increased $2.3 million from the same period in 2016. The increase was related to a $1.4 million increase in salary and wages due to staffing increases from the Capital Markets initiative, the Hirshorn Boothby acquisition and the Princeton wealth management office, in addition to annual salary and wage increases and increases in incentive compensation, and a $1.2 million increase in due diligence, merger-related and merger integration costs primarily related to the Royal Bank merger, and a $782 thousand increase in other operating expenses, largely related to increases in contributions (which were offset by tax credits for Pennsylvania bank shares tax) and impairments of OREO and repossessed assets recorded in the second quarter of 2017.
- For the three months ended June 30, 2017, the Corporation recorded a release from Allowance of $83 thousand as compared to a Provision of $445 thousand for the same period in 2016. Net charge-offs for the second quarter of 2017 were $625 thousand as compared to $254 thousand for the same period in 2016. The decrease in the Provision was primarily related to a decline in certain historic charge-off rates over the look-back period, along with improvements in certain economic indicators which factor into the calculation of the overall Allowance.
Financial Condition – June 30, 2017 Compared to December 31, 2016
- Total portfolio loans and leases of $2.67 billion as of June 30, 2017, increased by $131.2 million from December 31, 2016. Loan growth was concentrated in the commercial mortgage, construction and commercial and industrial sections of the portfolio, which increased by $87.0 million, or 7.8%, $14.6 million, or 10.3% and $19.4 million, or 3.4%, respectively.
- The Allowance as of June 30, 2017 was $16.4 million, or 0.61% 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 0.68% as of June 30, 2017, as compared to 0.78% as of December 31, 2016, and the Allowance plus the remaining loan mark as a percentage of gross loans, which was 1.03% as of June 30, 2017, as compared to 1.17% as of December 31, 2016. A reconciliation of these and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release. The decrease in the Allowance ratios was primarily the result of improvements in certain economic indicators as well as decreases in average historic charge-off rates over the lookback period, both of which factor into the calculation of the overall Allowance requirement.
- Available for sale investment securities as of June 30, 2017 were $443.7 million, a decrease of $123.3 million from December 31, 2016. Excluding the maturing, in January 2017, of $200 million of short-term U.S. Treasury bills, the available for sale investment portfolio has increased by $76.7 million since December 31, 2016, primarily in the U.S. government and agencies and the mortgage-backed securities segments of the portfolio. As previously mentioned the Corporation has begun positioning the investment portfolio in anticipation of the Royal Bank merger.
- Total assets as of June 30, 2017 were $3.44 billion, an increase of $16.7 million from December 31, 2016. Increases in portfolio loans and leases were largely offset by a decrease in available for sale investment securities discussed in the previous bullet point.
- Wealth assets under management, administration, supervision and brokerage totaled $12.05 billion as of June 30, 2017, an increase of $722.1 million from December 31, 2016. The increase in wealth assets was comprised of a $291.5 million increase in account balances whose fees are based on market value, and a $430.6 million increase in fixed rate flat-fee account types.
- Deposits of $2.68 billion as of June 30, 2017 increased $102.1 million from December 31, 2016. Over 80% of this increase was in noninterest-bearing deposits, which grew by $82.3 million. The increase in noninterest-bearing deposits was primarily in small business accounts.
- Borrowings of $295.0 million as of June 30, 2017 decreased $98.9 million from December 31, 2016. The decrease was comprised of a $73.9 million decrease in short-term borrowings and a $25.1 million decrease in long-term FHLB advances. In January 2017, $200 million of short-term borrowings associated with the maturing of $200 million of short-term U.S. Treasury bills were repaid. The net increase in short-term borrowings of $126.1 million were utilized to support the available for sale investment purchases and to replace $25.1 million of long-term FHLB advances which matured during the first half of 2017.
- The capital ratios for the Bank and the Corporation, as of June 30, 2017, as shown in the attached tables, indicate levels well above the regulatory minimum to be considered “well capitalized.” At both the Bank and Corporation levels, the capital ratios to risk-weighted assets have all decreased from their December 31, 2016 levels largely as a result of the increase in risk-weighted assets, much of which was in the commercial mortgage, construction, and commercial and industrial segments of the loan portfolio, which are typically risk-weighted at 100%.
FORWARD LOOKING STATEMENTS AND SAFE HARBOR
This press release contains statements which, to the extent that they are not recitations of historical fact may constitute forward-looking statements for purposes of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. Such forward-looking statements may include financial and other projections as well as statements regarding the Corporation’s future plans, objectives, performance, revenues, growth, profits, operating expenses or the Corporation’s underlying assumptions. The words “may,” “would,” “should,” “could,” “will,” “likely,” “possibly,” “expect,” “anticipate,” “intend,” “indicate,” “estimate,” “target,” “potentially,” “promising,” “probably,” “outlook,” “predict,” “contemplate,” “continue,” “plan,” “forecast,” “project,” “are optimistic,” “are looking,” “are looking forward” and “believe” or other similar words and phrases may identify forward-looking statements. Persons reading this press release are cautioned that such statements are only predictions, and that the Corporation’s actual future results or performance may be materially different.
Such forward-looking statements involve known and unknown risks and uncertainties. A number of factors, many of which are beyond the Corporation’s control, could cause our actual results, events or developments, or industry results, to be materially different from any future results, events or developments expressed, implied or anticipated by such forward-looking statements, and so our business and financial condition and results of operations could be materially and adversely affected. Such factors include, among others, our inability to obtain applicable regulatory approvals with respect to, or our inability to complete, the contemplated Royal Bank acquisition, that the integration of acquired businesses with the Corporation may take longer than anticipated or be more costly to complete and that the anticipated benefits, including any anticipated cost savings or strategic gains may be significantly harder to achieve or take longer than anticipated or may not be achieved, our need for capital, our ability to control operating costs and expenses, and to manage loan and lease delinquency rates; the credit risks of lending activities and overall quality of the composition of our loan, lease and securities portfolio; the impact of economic conditions, consumer and business spending habits, and real estate market conditions on our business and in our market area; changes in the levels of general interest rates, deposit interest rates, or net interest margin and funding sources; changes in banking regulations and policies and the possibility that any banking agency approvals we might require for certain activities will not be obtained in a timely manner or at all or will be conditioned in a manner that would impair our ability to implement our business plans; changes in accounting policies and practices; the inability of key third-party providers to perform their obligations to us; our ability to attract and retain key personnel; competition in our marketplace; war or terrorist activities; material differences in the actual financial results, cost savings and revenue enhancements associated with our acquisitions; and other factors as described in our securities filings. All forward-looking statements and information set forth herein are based on management’s current beliefs and assumptions as of the date hereof and speak only as of the date they are made. The Corporation does not undertake to update forward-looking statements.
For a complete discussion of the assumptions, risks and uncertainties related to our business, you are encouraged to review our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K, as updated by our quarterly or other reports subsequently filed with the SEC.
| Bryn Mawr Bank Corporation | |||||||||||||||||||||||||||||
| Summary Financial Information (unaudited) | |||||||||||||||||||||||||||||
| (dollars in thousands, except per share data) | |||||||||||||||||||||||||||||
| As of or For the Three Months Ended | For the Six Months Ended | ||||||||||||||||||||||||||||
| June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | June 30, 2016 | June 30, 2017 | June 30, 2016 | |||||||||||||||||||||||
| Consolidated Balance Sheet (selected items) | |||||||||||||||||||||||||||||
| Interest-bearing deposits with banks | $ | 30,806 | $ | 69,978 | $ | 34,206 | $ | 30,118 | $ | 20,481 | |||||||||||||||||||
| Investment securities (AFS, HTM and Trading) | 452,869 | 400,360 | 573,763 | 373,508 | 371,906 | ||||||||||||||||||||||||
| Loans held for sale | 8,590 | 3,015 | 9,621 | 11,506 | 11,882 | ||||||||||||||||||||||||
| Portfolio loans and leases | 2,666,651 | 2,555,589 | 2,535,425 | 2,493,357 | 2,423,821 | ||||||||||||||||||||||||
| Allowance for loan and lease losses (“ALLL”) | (16,399 | ) | (17,107 | ) | (17,486 | ) | (17,744 | ) | (17,036 | ) | |||||||||||||||||||
| Goodwill and other intangible assets | 129,211 | 124,629 | 125,170 | 126,000 | 126,888 | ||||||||||||||||||||||||
| Total assets | 3,438,219 | 3,292,617 | 3,421,530 | 3,174,080 | 3,090,090 | ||||||||||||||||||||||||
| Deposits – interest-bearing | 1,863,288 | 1,865,009 | 1,843,495 | 1,759,862 | 1,720,477 | ||||||||||||||||||||||||
| Deposits – non-interest-bearing | 818,475 | 771,556 | 736,180 | 718,015 | 689,214 | ||||||||||||||||||||||||
| Short-term borrowings | 130,295 | 23,613 | 204,151 | 50,065 | 19,119 | ||||||||||||||||||||||||
| Long-term FHLB advances and other borrowings | 164,681 | 174,711 | 189,742 | 204,772 | 224,802 | ||||||||||||||||||||||||
| Subordinated notes | 29,559 | 29,546 | 29,532 | 29,518 | 29,505 | ||||||||||||||||||||||||
| Total liabilities | 3,043,242 | 2,904,522 | 3,040,403 | 2,795,621 | 2,717,623 | ||||||||||||||||||||||||
| Shareholders’ equity | 394,977 | 388,095 | 381,127 | 378,459 | 372,467 | ||||||||||||||||||||||||
| Average Balance Sheet (selected items) | |||||||||||||||||||||||||||||
| Interest-bearing deposits with banks | $ | 26,266 | $ | 39,669 | $ | 55,298 | $ | 33,532 | $ | 44,950 | $ | 32,931 | $ | 42,000 | |||||||||||||||
| Investment securities (AFS, HTM and Trading) | 429,400 | 393,306 | 386,658 | 373,616 | 371,153 | 411,453 | 366,055 | ||||||||||||||||||||||
| Loans held for sale | 3,855 | 4,238 | 11,591 | 12,887 | 7,844 | 4,045 | 6,662 | ||||||||||||||||||||||
| Portfolio loans and leases | 2,611,755 | 2,551,439 | 2,506,376 | 2,464,085 | 2,404,799 | 2,581,764 | 2,353,951 | ||||||||||||||||||||||
| Total interest-earning assets | 3,071,276 | 2,988,652 | 2,959,923 | 2,884,120 | 2,828,746 | 3,030,193 | 2,768,668 | ||||||||||||||||||||||
| Goodwill and intangible assets | 126,537 | 124,884 | 125,614 | 126,505 | 127,402 | 125,715 | 127,849 | ||||||||||||||||||||||
| Total assets | 3,333,307 | 3,244,060 | 3,215,868 | 3,142,019 | 3,089,953 | 3,288,928 | 3,031,550 | ||||||||||||||||||||||
| Deposits – interest-bearing | 1,853,660 | 1,852,194 | 1,809,276 | 1,729,689 | 1,717,252 | 1,852,931 | 1,675,451 | ||||||||||||||||||||||
| Short-term borrowings | 98,869 | 47,603 | 40,629 | 40,966 | 32,328 | 73,378 | 33,243 | ||||||||||||||||||||||
| Long-term FHLB advances and other borrowings | 171,567 | 182,507 | 198,454 | 218,920 | 236,248 | 177,006 | 243,131 | ||||||||||||||||||||||
| Subordinated notes | 29,550 | 29,537 | 29,523 | 29,509 | 29,496 | 29,544 | 29,489 | ||||||||||||||||||||||
| Total interest-bearing liabilities | 2,153,646 | 2,111,841 | 2,077,882 | 2,019,084 | 2,015,324 | 2,132,859 | 1,981,314 | ||||||||||||||||||||||
| Total liabilities | 2,943,591 | 2,861,846 | 2,837,825 | 2,769,065 | 2,723,838 | 2,902,942 | 2,668,056 | ||||||||||||||||||||||
| Shareholders’ equity | 389,716 | 382,214 | 378,043 | 372,954 | 366,115 | 385,986 | 363,494 | ||||||||||||||||||||||
| Income Statement | |||||||||||||||||||||||||||||
| Net interest income | $ | 27,965 | $ | 27,403 | $ | 26,990 | $ | 26,717 | $ | 26,627 | $ | 55,368 | $ | 52,529 | |||||||||||||||
| Provision for loan and lease losses | (83 | ) | 291 | 1,059 | 1,412 | 445 | 208 | 1,855 | |||||||||||||||||||||
| Noninterest income | 14,785 | 13,227 | 13,248 | 13,786 | 13,781 | 28,012 | 27,028 | ||||||||||||||||||||||
| Noninterest expense | 28,495 | 26,660 | 25,087 | 25,371 | 26,220 | 55,155 | 51,310 | ||||||||||||||||||||||
| Income tax expense (benefit) | 4,905 | 4,635 | 4,684 | 4,346 | 4,810 | 9,540 | 9,137 | ||||||||||||||||||||||
| Net income | 9,433 | 9,044 | 9,408 | 9,374 | 8,933 | 18,477 | 17,255 | ||||||||||||||||||||||
| Basic earnings per share | 0.56 | 0.53 | 0.56 | 0.56 | 0.53 | 1.09 | 1.02 | ||||||||||||||||||||||
| Diluted earnings per share | 0.55 | 0.53 | 0.55 | 0.55 | 0.52 | 1.07 | 1.01 | ||||||||||||||||||||||
| Net income (core) (1) | 10,236 | 9,375 | 9,402 | 9,392 | 8,961 | 19,612 | 17,232 | ||||||||||||||||||||||
| Basic earnings per share (core) (1) | 0.60 | 0.55 | 0.56 | 0.56 | 0.53 | 1.16 | 1.02 | ||||||||||||||||||||||
| Diluted earnings per share (core) (1) | 0.59 | 0.55 | 0.55 | 0.55 | 0.53 | 1.14 | 1.02 | ||||||||||||||||||||||
| Cash dividends paid per share | 0.21 | 0.21 | 0.21 | 0.21 | 0.20 | 0.42 | 0.40 | ||||||||||||||||||||||
| Profitability Indicators | |||||||||||||||||||||||||||||
| Return on average assets | 1.14% | 1.13% | 1.16% | 1.19% | 1.16% | 1.13% | 1.14% | ||||||||||||||||||||||
| Return on average equity | 9.71% | 9.60% | 9.90% | 10.00% | 9.81% | 9.65% | 9.55% | ||||||||||||||||||||||
| Return on tangible equity(1) | 15.06% | 14.96% | 15.68% | 16.06% | 16.02% | 15.01% | 15.71% | ||||||||||||||||||||||
| Tax-equivalent net interest margin | 3.68% | 3.74% | 3.65% | 3.71% | 3.81% | 3.71% | 3.84% | ||||||||||||||||||||||
| Efficiency ratio(1) | 62.16% | 62.66% | 62.66% | 60.30% | 60.41% | 62.40% | 62.21% | ||||||||||||||||||||||
| Mortgage Banking Information | |||||||||||||||||||||||||||||
| Mortgage loans originated | $ | 46,848 | $ | 48,550 | $ | 78,749 | $ | 84,885 | $ | 64,893 | $ | 95,398 | $ | 117,425 | |||||||||||||||
| Residential mortgage loans sold – servicing retained | 20,312 | 27,690 | 44,763 | 40,462 | 26,944 | 48,002 | 52,909 | ||||||||||||||||||||||
| Residential mortgage loans sold – servicing released | 3,819 | 4,981 | 4,632 | 10,522 | 5,278 | 8,800 | 7,676 | ||||||||||||||||||||||
| Total residential mortgage loans sold | $ | 24,131 | $ | 32,671 | $ | 49,395 | $ | 50,984 | $ | 32,222 | $ | 56,802 | $ | 60,585 | |||||||||||||||
| Residential mortgage loans serviced for others | $ | 641,165 | $ | 638,553 | $ | 631,889 | $ | 618,134 | $ | 610,418 | |||||||||||||||||||
| Share Data | |||||||||||||||||||||||||||||
| Closing share price | $ | 42.50 | $ | 39.50 | $ | 42.15 | $ | 31.99 | $ | 29.20 | |||||||||||||||||||
| Book value per common share | $ | 23.25 | $ | 22.87 | $ | 22.50 | $ | 22.40 | $ | 22.14 | |||||||||||||||||||
| Tangible book value per common share | $ | 15.64 | $ | 15.53 | $ | 15.11 | $ | 14.94 | $ | 14.60 | |||||||||||||||||||
| Price / book value | 182.81% | 172.71% | 187.34% | 142.80% | 131.90% | ||||||||||||||||||||||||
| Price / tangible book value | 271.69% | 254.41% | 278.96% | 214.07% | 200.05% | ||||||||||||||||||||||||
| Weighted average diluted shares outstanding | 17,232,767 | 17,182,689 | 17,164,675 | 17,072,358 | 17,027,419 | 17,207,812 | 16,954,116 | ||||||||||||||||||||||
| Shares outstanding, end of period | 16,989,849 | 16,969,451 | 16,939,715 | 16,893,878 | 16,824,564 | ||||||||||||||||||||||||
| Wealth Management Information: | |||||||||||||||||||||||||||||
| Wealth assets under mgmt, administration, supervision and brokerage (2) | $ | 12,050,555 | $ | 11,725,460 | $ | 11,328,457 | $ | 9,969,745 | $ | 9,632,521 | |||||||||||||||||||
| Fees for wealth management services | $ | 9,807 | $ | 9,303 | $ | 9,327 | $ | 9,100 | $ | 9,431 | |||||||||||||||||||
| Capital Ratios | |||||||||||||||||||||||||||||
| Bryn Mawr Trust Company | |||||||||||||||||||||||||||||
| Tier I capital to risk weighted assets (“RWA”) | 10.29% | 10.58% | 10.50% | 10.99% | 10.94% | ||||||||||||||||||||||||
| Total (Tier II) capital to RWA | 10.90% | 11.25% | 11.19% | 11.70% | 11.65% | ||||||||||||||||||||||||
| Tier I leverage ratio | 8.76% | 8.83% | 8.73% | 9.17% | 9.06% | ||||||||||||||||||||||||
| Tangible equity ratio (1) | 8.24% | 8.46% | 7.85% | 8.85% | 8.79% | ||||||||||||||||||||||||
| Common equity Tier I capital to RWA | 10.29% | 10.58% | 10.50% | 10.99% | 10.94% | ||||||||||||||||||||||||
| Bryn Mawr Bank Corporation | |||||||||||||||||||||||||||||
| Tier I capital to RWA | 10.12% | 10.50% | 10.51% | 10.42% | 10.45% | ||||||||||||||||||||||||
| Total (Tier II) capital to RWA | 11.82% | 12.30% | 12.35% | 12.30% | 12.35% | ||||||||||||||||||||||||
| Tier I leverage ratio | 8.63% | 8.77% | 8.73% | 8.70% | 8.65% | ||||||||||||||||||||||||
| Tangible equity ratio (1) | 8.03% | 8.32% | 7.76% | 8.28% | 8.29% | ||||||||||||||||||||||||
| Common equity Tier I capital to RWA | 10.12% | 10.50% | 10.51% | 10.42% | 10.45% | ||||||||||||||||||||||||
| Asset Quality Indicators | |||||||||||||||||||||||||||||
| Net loan and lease charge-offs (“NCO”s) | $ | 625 | $ | 670 | $ | 1,317 | $ | 704 | $ | 254 | $ | 1,295 | $ | 676 | |||||||||||||||
| Nonperforming loans and leases (“NPL”s) | $ | 7,237 | $ | 7,329 | $ | 8,363 | $ | 9,883 | $ | 9,617 | |||||||||||||||||||
| Other real estate owned (“OREO”) | 1,122 | 978 | 1,017 | 867 | 784 | ||||||||||||||||||||||||
| Total nonperforming assets (“NPA”s) | $ | 8,359 | $ | 8,307 | $ | 9,380 | $ | 10,750 | $ | 10,401 | |||||||||||||||||||
| Nonperforming loans and leases 30 or more days past due | $ | 4,076 | $ | 5,097 | $ | 6,072 | $ | 6,684 | $ | 5,599 | |||||||||||||||||||
| Performing loans and leases 30 to 89 days past due | 6,258 | 6,077 | 3,062 | 2,537 | 3,564 | ||||||||||||||||||||||||
| Performing loans and leases 90 or more days past due | – | – | – | – | – | ||||||||||||||||||||||||
| Total delinquent loans and leases | $ | 10,334 | $ | 11,174 | $ | 9,134 | $ | 9,221 | $ | 9,163 | |||||||||||||||||||
| Delinquent loans and leases to total loans and leases | 0.39% | 0.44% | 0.36% | 0.37% | 0.38% | ||||||||||||||||||||||||
| Delinquent performing loans and leases to total loans and leases | 0.23% | 0.24% | 0.12% | 0.10% | 0.15% | ||||||||||||||||||||||||
| NCOs / average loans and leases (annualized) | 0.10% | 0.11% | 0.21% | 0.11% | 0.04% | 0.10 | % | 0.06 | % | ||||||||||||||||||||
| NPLs / total portfolio loans and leases | 0.27% | 0.29% | 0.33% | 0.40% | 0.40% | ||||||||||||||||||||||||
| NPAs / total loans and leases and OREO | 0.31% | 0.32% | 0.37% | 0.43% | 0.43% | ||||||||||||||||||||||||
| NPAs / total assets | 0.24% | 0.25% | 0.27% | 0.34% | 0.34% | ||||||||||||||||||||||||
| ALLL / NPLs | 226.60% | 233.42% | 209.09% | 179.54% | 177.14% | ||||||||||||||||||||||||
| ALLL / portfolio loans | 0.61% | 0.67% | 0.69% | 0.71% | 0.70% | ||||||||||||||||||||||||
| ALLL on originated loans and leases / Originated loans and leases (1) | 0.68% | 0.75% | 0.78% | 0.81% | 0.81% | ||||||||||||||||||||||||
| (Total Allowance + Loan mark) / Total Gross portfolio loans and leases (1) | 1.03% | 1.12% | 1.17% | 1.24% | 1.30% | ||||||||||||||||||||||||
| Troubled debt restructurings (“TDR”s) included in NPLs | $ | 2,470 | $ | 2,681 | $ | 2,632 | $ | 1,680 | $ | 1,779 | |||||||||||||||||||
| TDRs in compliance with modified terms | 6,148 | 6,492 | 6,395 | 6,305 | 4,984 | ||||||||||||||||||||||||
| Total TDRs | $ | 8,618 | $ | 9,173 | $ | 9,027 | $ | 7,985 | $ | 6,763 | |||||||||||||||||||
| (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, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | June 30, 2016 | |||||||||||||||||||
| Assets | |||||||||||||||||||||||
| Cash and due from banks | $ | 19,352 | $ | 17,457 | $ | 16,559 | $ | 18,905 | $ | 13,710 | |||||||||||||
| Interest-bearing deposits with banks | 30,806 | 69,978 | 34,206 | 30,118 | 20,481 | ||||||||||||||||||
| Cash and cash equivalents | 50,158 | 87,435 | 50,765 | 49,023 | 34,191 | ||||||||||||||||||
| Investment securities, available for sale | 443,687 | 391,028 | 566,996 | 366,910 | 365,470 | ||||||||||||||||||
| Investment securities, held to maturity | 5,161 | 5,194 | 2,879 | 2,896 | 2,915 | ||||||||||||||||||
| Investment securities, trading | 4,021 | 4,138 | 3,888 | 3,702 | 3,521 | ||||||||||||||||||
| Loans held for sale | 8,590 | 3,015 | 9,621 | 11,506 | 11,882 | ||||||||||||||||||
| Portfolio loans and leases, originated | 2,409,964 | 2,286,814 | 2,240,987 | 2,176,549 | 2,090,070 | ||||||||||||||||||
| Portfolio loans and leases, acquired | 256,687 | 268,775 | 294,438 | 316,808 | 333,751 | ||||||||||||||||||
| Total portfolio loans and leases | 2,666,651 | 2,555,589 | 2,535,425 | 2,493,357 | 2,423,821 | ||||||||||||||||||
| Less: Allowance for losses on originated loan and leases | (16,374 | ) | (17,069 | ) | (17,458 | ) | (17,716 | ) | (17,008 | ) | |||||||||||||
| Less: Allowance for losses on acquired loan and leases | (25 | ) | (38 | ) | (28 | ) | (28 | ) | (28 | ) | |||||||||||||
| Total allowance for loan and lease losses | (16,399 | ) | (17,107 | ) | (17,486 | ) | (17,744 | ) | (17,036 | ) | |||||||||||||
| Net portfolio loans and leases | 2,650,252 | 2,538,482 | 2,517,939 | 2,475,613 | 2,406,785 | ||||||||||||||||||
| Premises and equipment | 44,446 | 40,515 | 41,778 | 42,559 | 43,607 | ||||||||||||||||||
| Accrued interest receivable | 8,717 | 8,392 | 8,533 | 8,066 | 8,144 | ||||||||||||||||||
| Mortgage servicing rights | 5,683 | 5,686 | 5,582 | 4,793 | 4,646 | ||||||||||||||||||
| Bank owned life insurance | 39,680 | 39,479 | 39,279 | 39,055 | 38,836 | ||||||||||||||||||
| Federal Home Loan Bank (“FHLB”) stock | 15,168 | 8,505 | 17,305 | 13,185 | 10,618 | ||||||||||||||||||
| Goodwill | 107,127 | 104,765 | 104,765 | 104,765 | 104,765 | ||||||||||||||||||
| Intangible assets | 22,084 | 19,864 | 20,405 | 21,235 | 22,123 | ||||||||||||||||||
| Other investments | 8,682 | 8,716 | 8,627 | 9,121 | 8,722 | ||||||||||||||||||
| Other assets | 24,763 | 27,403 | 23,168 | 21,651 | 23,865 | ||||||||||||||||||
| Total assets | $ | 3,438,219 | $ | 3,292,617 | $ | 3,421,530 | $ | 3,174,080 | $ | 3,090,090 | |||||||||||||
| Liabilities | |||||||||||||||||||||||
| Deposits | |||||||||||||||||||||||
| Noninterest-bearing | $ | 818,475 | $ | 771,556 | $ | 736,180 | $ | 718,015 | $ | 689,214 | |||||||||||||
| Interest-bearing | 1,863,288 | 1,865,009 | 1,843,495 | 1,759,862 | 1,720,477 | ||||||||||||||||||
| Total deposits | 2,681,763 | 2,636,565 | 2,579,675 | 2,477,877 | 2,409,691 | ||||||||||||||||||
| Short-term borrowings | 130,295 | 23,613 | 204,151 | 50,065 | 19,119 | ||||||||||||||||||
| Long-term FHLB advances | 164,681 | 174,711 | 189,742 | 204,772 | 224,802 | ||||||||||||||||||
| Subordinated notes | 29,559 | 29,546 | 29,532 | 29,518 | 29,505 | ||||||||||||||||||
| Accrued interest payable | 2,830 | 2,722 | 2,734 | 1,854 | 1,846 | ||||||||||||||||||
| Other liabilities | 34,114 | 37,365 | 34,569 | 31,535 | 32,660 | ||||||||||||||||||
| Total liabilities | 3,043,242 | 2,904,522 | 3,040,403 | 2,795,621 | 2,717,623 | ||||||||||||||||||
| Shareholders’ equity | |||||||||||||||||||||||
| Common stock | 21,162 | 21,141 | 21,111 | 21,064 | 20,972 | ||||||||||||||||||
| Paid-in capital in excess of par value | 234,654 | 233,910 | 232,806 | 231,398 | 230,298 | ||||||||||||||||||
| Less: common stock held in treasury, at cost | (67,091 | ) | (66,969 | ) | (66,950 | ) | (66,895 | ) | (66,200 | ) | |||||||||||||
| Accumulated other comprehensive income (loss), net of tax | (1,564 | ) | (1,990 | ) | (2,409 | ) | 2,128 | 2,488 | |||||||||||||||
| Retained earnings | 207,816 | 202,003 | 196,569 | 190,764 | 184,909 | ||||||||||||||||||
| Total shareholders equity | 394,977 | 388,095 | 381,127 | 378,459 | 372,467 | ||||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 3,438,219 | $ | 3,292,617 | $ | 3,421,530 | $ | 3,174,080 | $ | 3,090,090 | |||||||||||||
| Bryn Mawr Bank Corporation | |||||||||||||||||||||||
| Supplemental Balance Sheet Information (unaudited) | |||||||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||||||
| Portfolio Loans and Leases as of | |||||||||||||||||||||||
| June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | June 30, 2016 | |||||||||||||||||||
| Commercial mortgages | $ | 1,197,936 | $ | 1,137,870 | $ | 1,110,897 | $ | 1,089,621 | $ | 1,055,934 | |||||||||||||
| Home equity loans and lines | 208,480 | 203,962 | 208,000 | 206,578 | 202,989 | ||||||||||||||||||
| Residential mortgages | 416,488 | 418,264 | 413,540 | 418,408 | 414,863 | ||||||||||||||||||
| Construction | 156,581 | 145,699 | 141,964 | 133,269 | 133,313 | ||||||||||||||||||
| Total real estate loans | 1,979,485 | 1,905,795 | 1,874,401 | 1,847,876 | 1,807,099 | ||||||||||||||||||
| Commercial & Industrial | 599,203 | 567,917 | 579,791 | 565,497 | 538,684 | ||||||||||||||||||
| Consumer | 28,485 | 23,932 | 25,341 | 23,717 | 21,561 | ||||||||||||||||||
| Leases | 59,478 | 57,945 | 55,892 | 56,267 | 56,477 | ||||||||||||||||||
| Total non-real estate loans and leases | 687,166 | 649,794 | 661,024 | 645,481 | 616,722 | ||||||||||||||||||
| Total portfolio loans and leases | $ | 2,666,651 | $ | 2,555,589 | $ | 2,535,425 | $ | 2,493,357 | $ | 2,423,821 | |||||||||||||
| Nonperforming Loans and Leases as of | |||||||||||||||||||||||
| June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | June 30, 2016 | |||||||||||||||||||
| Commercial mortgages | $ | 819 | $ | 315 | $ | 320 | $ | 139 | $ | 139 | |||||||||||||
| Home equity loans and lines | 1,535 | 1,828 | 2,289 | 2,827 | 3,011 | ||||||||||||||||||
| Residential mortgages | 2,589 | 2,640 | 2,658 | 2,845 | 2,909 | ||||||||||||||||||
| Construction | – | – | – | – | – | ||||||||||||||||||
| Total nonperforming real estate loans | 4,943 | 4,783 | 5,267 | 5,811 | 6,059 | ||||||||||||||||||
| Commercial & Industrial | 2,112 | 2,471 | 2,957 | 3,960 | 3,457 | ||||||||||||||||||
| Consumer | 10 | – | 2 | 2 | 4 | ||||||||||||||||||
| Leases | 173 | 75 | 137 | 110 | 97 | ||||||||||||||||||
| Total nonperforming non-real estate loans and leases | 2,295 | 2,546 | 3,096 | 4,072 | 3,558 | ||||||||||||||||||
| Total nonperforming portfolio loans and leases | $ | 7,238 | $ | 7,329 | $ | 8,363 | $ | 9,883 | $ | 9,617 | |||||||||||||
| Net Loan and Lease Charge-Offs (Recoveries) for the Three Months Ended | |||||||||||||||||||||||
| June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | June 30, 2016 | |||||||||||||||||||
| Commercial mortgage | $ | (3 | ) | $ | (3 | ) | $ | (51 | ) | $ | (4 | ) | $ | (3 | ) | ||||||||
| Home equity loans and lines | 169 | 438 | 69 | 375 | 11 | ||||||||||||||||||
| Residential | 43 | 27 | 28 | 2 | 262 | ||||||||||||||||||
| Construction | (1 | ) | (1 | ) | (1 | ) | – | (62 | ) | ||||||||||||||
| Total net charge-offs (recoveries) of real estate loans | 208 | 461 | 45 | 373 | 208 | ||||||||||||||||||
| Commercial & Industrial | 185 | 59 | 1,128 | 95 | (44 | ) | |||||||||||||||||
| Consumer | 16 | 39 | 42 | 58 | 30 | ||||||||||||||||||
| Leases | 216 | 111 | 102 | 178 | 60 | ||||||||||||||||||
| Total net charge-offs of non-real estate loans and leases | 417 | 209 | 1,272 | 331 | 46 | ||||||||||||||||||
| Total net charge-offs | $ | 625 | $ | 670 | $ | 1,317 | $ | 704 | $ | 254 | |||||||||||||
| Bryn Mawr Bank Corporation | ||||||||||||||||||||||
| Supplemental Balance Sheet Information (unaudited) | ||||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||
| Investment Securities Available for Sale, at Fair Value | ||||||||||||||||||||||
| June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | June 30, 2016 | ||||||||||||||||||
| U.S. Treasury securities | $ | 100 | $ | 100 | $ | 200,097 | $ | 101 | $ | 102 | ||||||||||||
| Obligations of the U.S. Government and agencies | 126,468 | 100,476 | 82,198 | 76,598 | 86,134 | |||||||||||||||||
| State & political subdivisions – tax-free | 26,958 | 30,416 | 33,005 | 36,735 | 39,047 | |||||||||||||||||
| State & political subdivisions – taxable | 524 | 524 | 525 | 529 | 532 | |||||||||||||||||
| Mortgage-backed securities | 230,617 | 197,420 | 185,951 | 184,919 | 186,354 | |||||||||||||||||
| Collateralized mortgage obligations | 42,549 | 45,476 | 48,694 | 51,344 | 36,702 | |||||||||||||||||
| Other debt securities | 1,099 | 1,299 | 1,299 | 1,450 | 1,450 | |||||||||||||||||
| Bond mutual funds | 11,956 | 11,920 | 11,895 | 11,847 | 11,774 | |||||||||||||||||
| Other investments | 3,416 | 3,397 | 3,332 | 3,387 | 3,375 | |||||||||||||||||
| Total | $ | 443,687 | $ | 391,028 | $ | 566,996 | $ | 366,910 | $ | 365,470 | ||||||||||||
| Unrealized Gain (Loss) on Investment Securities Available for Sale | ||||||||||||||||||||||
| June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | June 30, 2016 | ||||||||||||||||||
| U.S. Treasury securities | $ | – | $ | – | $ | 3 | $ | – | $ | 1 | ||||||||||||
| Obligations of the U.S. Government and agencies | (699 | ) | (803 | ) | (913 | ) | 946 | 1,183 | ||||||||||||||
| State & political subdivisions – tax-free | 11 | (10 | ) | (96 | ) | 131 | 240 | |||||||||||||||
| State & political subdivisions – taxable | 1 | 1 | 2 | 5 | 8 | |||||||||||||||||
| Mortgage-backed securities | 480 | 196 | (47 | ) | 3,801 | 3,958 | ||||||||||||||||
| Collateralized mortgage obligations | (662 | ) | (777 | ) | (794 | ) | 253 | 496 | ||||||||||||||
| Other debt securities | (1 | ) | (1 | ) | (1 | ) | – | – | ||||||||||||||
| Bond mutual funds | – | (36 | ) | (61 | ) | (109 | ) | (182 | ) | |||||||||||||
| Other investments | 203 | 132 | 13 | 34 | (66 | ) | ||||||||||||||||
| Total | $ | (667 | ) | $ | (1,298 | ) | $ | (1,894 | ) | $ | 5,061 | $ | 5,638 | |||||||||
| Deposits | ||||||||||||||||||||||
| June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | June 30, 2016 | ||||||||||||||||||
| Interest-bearing deposits: | ||||||||||||||||||||||
| Interest-bearing checking | $ | 381,345 | $ | 395,131 | $ | 379,424 | $ | 333,055 | $ | 333,425 | ||||||||||||
| Money market | 729,859 | 757,071 | 761,657 | 725,116 | 718,144 | |||||||||||||||||
| Savings | 254,903 | 255,791 | 232,193 | 228,391 | 217,877 | |||||||||||||||||
| Wholesale non-maturity deposits | 54,675 | 69,471 | 74,272 | 64,664 | 58,690 | |||||||||||||||||
| Wholesale time deposits | 120,524 | 68,164 | 73,037 | 99,052 | 113,274 | |||||||||||||||||
| Retail time deposits | 321,982 | 319,381 | 322,912 | 309,584 | 279,067 | |||||||||||||||||
| Total interest-bearing deposits | 1,863,288 | 1,865,009 | 1,843,495 | 1,759,862 | 1,720,477 | |||||||||||||||||
| Noninterest-bearing deposits | 818,475 | 771,556 | 736,180 | 718,015 | 689,214 | |||||||||||||||||
| Total deposits | $ | 2,681,763 | $ | 2,636,565 | $ | 2,579,675 | $ | 2,477,877 | $ | 2,409,691 | ||||||||||||
| 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, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | June 30, 2016 | June 30, 2017 | June 30, 2016 | |||||||||||||||||||||||
| Interest income: | |||||||||||||||||||||||||||||
| Interest and fees on loans and leases | $ | 29,143 | $ | 28,482 | $ | 28,230 | $ | 27,931 | $ | 27,679 | $ | 57,625 | $ | 54,375 | |||||||||||||||
| Interest on cash and cash equivalents | 35 | 66 | 53 | 27 | 42 | 101 | 88 | ||||||||||||||||||||||
| Interest on investment securities | 2,059 | 1,778 | 1,639 | 1,556 | 1,565 | 3,837 | 3,092 | ||||||||||||||||||||||
| Total interest income | 31,237 | 30,326 | 29,922 | 29,514 | 29,286 | 61,563 | 57,555 | ||||||||||||||||||||||
| Interest expense: | |||||||||||||||||||||||||||||
| Interest on deposits | 1,983 | 1,828 | 1,780 | 1,575 | 1,402 | 3,811 | 2,478 | ||||||||||||||||||||||
| Interest on short-term borrowings | 237 | 27 | 22 | 34 | 20 | 264 | 37 | ||||||||||||||||||||||
| Interest on FHLB advances and other borrowings | 682 | 698 | 760 | 818 | 867 | 1,380 | 1,775 | ||||||||||||||||||||||
| Interest on subordinated notes | 370 | 370 | 370 | 370 | 370 | 740 | 736 | ||||||||||||||||||||||
| Total interest expense | 3,272 | 2,923 | 2,932 | 2,797 | 2,659 | 6,195 | 5,026 | ||||||||||||||||||||||
| Net interest income | 27,965 | 27,403 | 26,990 | 26,717 | 26,627 | 55,368 | 52,529 | ||||||||||||||||||||||
| Provision for loan and lease losses (the “Provision”) | (83 | ) | 291 | 1,059 | 1,412 | 445 | 208 | 1,855 | |||||||||||||||||||||
| Net interest income after Provision | 28,048 | 27,112 | 25,931 | 25,305 | 26,182 | 55,160 | 50,674 | ||||||||||||||||||||||
| Noninterest income: | |||||||||||||||||||||||||||||
| Fees for wealth management services | 9,807 | 9,303 | 9,327 | 9,100 | 9,431 | 19,110 | 18,263 | ||||||||||||||||||||||
| Insurance revenue | 943 | 763 | 715 | 886 | 845 | 1,706 | 2,121 | ||||||||||||||||||||||
| Capital markets revenue | 953 | – | – | – | – | 953 | – | ||||||||||||||||||||||
| Service charges on deposits | 630 | 647 | 688 | 688 | 713 | 1,277 | 1,415 | ||||||||||||||||||||||
| Loan servicing and other fees | 519 | 503 | 411 | 497 | 539 | 1,022 | 1,031 | ||||||||||||||||||||||
| Net gain on sale of loans | 520 | 629 | 607 | 879 | 857 | 1,149 | 1,656 | ||||||||||||||||||||||
| Net gain (loss) on sale of investment securities available for sale | – | 1 | 9 | (28 | ) | (43 | ) | 1 | (58 | ) | |||||||||||||||||||
| Net (loss) gain on sale of other real estate owned | (12 | ) | – | – | – | – | (12 | ) | (76 | ) | |||||||||||||||||||
| Dividends on FHLB and FRB stocks | 218 | 214 | 309 | 277 | 263 | 432 | 477 | ||||||||||||||||||||||
| Other operating income | 1,207 | 1,167 | 1,182 | 1,487 | 1,176 | 2,374 | 2,199 | ||||||||||||||||||||||
| Total noninterest income | 14,785 | 13,227 | 13,248 | 13,786 | 13,781 | 28,012 | 27,028 | ||||||||||||||||||||||
| Noninterest expense: | |||||||||||||||||||||||||||||
| Salaries and wages | 13,580 | 12,450 | 11,855 | 11,621 | 12,197 | 26,030 | 23,935 | ||||||||||||||||||||||
| Employee benefits | 2,475 | 2,559 | 2,207 | 2,420 | 2,436 | 5,034 | 4,921 | ||||||||||||||||||||||
| Loss on pension termination | – | – | – | – | – | – | |||||||||||||||||||||||
| Occupancy and bank premises | 2,247 | 2,526 | 2,407 | 2,349 | 2,367 | 4,773 | 4,855 | ||||||||||||||||||||||
| Branch lease termination expense | – | – | – | – | – | – | |||||||||||||||||||||||
| Furniture, fixtures and equipment | 1,869 | 1,974 | 1,869 | 1,837 | 1,895 | 3,843 | 3,814 | ||||||||||||||||||||||
| Advertising | 405 | 386 | 391 | 334 | 372 | 791 | 656 | ||||||||||||||||||||||
| Amortization of intangible assets | 688 | 693 | 830 | 888 | 889 | 1,381 | 1,780 | ||||||||||||||||||||||
| Impairment of intangible assets | – | – | – | – | – | – | |||||||||||||||||||||||
| Impairment (recovery) of mortgage servicing rights (“MSRs”) | 43 | 3 | (580 | ) | 29 | 599 | 46 | 682 | |||||||||||||||||||||
| Due diligence, merger-related and merger integration expenses | 1,236 | 511 | – | – | – | 1,747 | – | ||||||||||||||||||||||
| Professional fees | 1,049 | 711 | 963 | 937 | 946 | 1,760 | 1,759 | ||||||||||||||||||||||
| Pennsylvania bank shares tax | 297 | 664 | (204 | ) | 675 | 640 | 961 | 1,278 | |||||||||||||||||||||
| Information technology | 820 | 874 | 857 | 881 | 875 | 1,694 | 1,923 | ||||||||||||||||||||||
| Other operating expenses | 3,786 | 3,309 | 4,492 | 3,400 | 3,004 | 7,095 | 5,707 | ||||||||||||||||||||||
| Total noninterest expense | 28,495 | 26,660 | 25,087 | 25,371 | 26,220 | 55,155 | 51,310 | ||||||||||||||||||||||
| Income before income taxes | 14,338 | 13,679 | 14,092 | 13,720 | 13,743 | 28,017 | 26,392 | ||||||||||||||||||||||
| Income tax expense | 4,905 | 4,635 | 4,684 | 4,346 | 4,810 | 9,540 | 9,137 | ||||||||||||||||||||||
| Net income | $ | 9,433 | $ | 9,044 | $ | 9,408 | $ | 9,374 | $ | 8,933 | $ | 18,477 | $ | 17,255 | |||||||||||||||
| Per share data: | |||||||||||||||||||||||||||||
| Weighted average shares outstanding | 16,984,563 | 16,954,132 | 16,916,705 | 16,860,727 | 16,812,219 | 16,969,431 | 16,830,211 | ||||||||||||||||||||||
| Dilutive common shares | 248,204 | 228,557 | 247,970 | 211,631 | 215,200 | 238,381 | 123,905 | ||||||||||||||||||||||
| Adjusted weighted average diluted shares | 17,232,767 | 17,182,689 | 17,164,675 | 17,072,358 | 17,027,419 | 17,207,812 | 16,954,116 | ||||||||||||||||||||||
| Basic earnings (loss) per common share | $ | 0.56 | $ | 0.53 | $ | 0.56 | $ | 0.56 | $ | 0.53 | $ | 1.09 | $ | 1.03 | |||||||||||||||
| Diluted earnings (loss) per common share | $ | 0.55 | $ | 0.53 | $ | 0.55 | $ | 0.55 | $ | 0.52 | $ | 1.07 | $ | 1.02 | |||||||||||||||
| Dividend declared per share | $ | 0.21 | $ | 0.21 | $ | 0.21 | $ | 0.21 | $ | 0.20 | $ | 0.42 | $ | 0.40 | |||||||||||||||
| Effective tax rate | 34.21% | 33.88% | 33.24% | 31.68% | 35.09% | 34.05% | 34.62% | ||||||||||||||||||||||
| Bryn Mawr Bank Corporation | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Tax-Equivalent Net Interest Margin (unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (dollars in thousands, except per share data) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| For The Three Months Ended | For The Six Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | June 30, 2016 | June 30, 2017 | June 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| (dollars in thousands) | Average Balance |
Interest Income/ Expense |
Average Rates Earned/ Paid |
Average Balance |
Interest Income/ Expense |
Average Rates Earned/ Paid |
Average Balance |
Interest Income/ Expense |
Average Rates Earned/ Paid |
Average Balance |
Interest Income/ Expense |
Average Rates Earned/ Paid |
Average Balance |
Interest Income/ Expense |
Average Rates Earned/ Paid |
Average Balance |
Interest Income/ Expense |
Average Rates Earned/ Paid |
Average Balance |
Interest Income/ Expense |
Average Rates Earned/ Paid |
|||||||||||||||||||||||||||||||||||||
| Assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest-bearing deposits with other banks | $ | 26,266 | $ | 35 | 0.53 | % | $ | 39,669 | $ | 66 | 0.67 | % | $ | 55,298 | $ | 53 | 0.38 | % | $ | 33,532 | $ | 27 | 0.32 | % | $ | 44,950 | $ | 42 | 0.38 | % | $ | 32,931 | $ | 101 | 0.62 | % | $ | 42,000 | $ | 88 | 0.42 | % | ||||||||||||||||
| Investment securities – available for sale: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Taxable | 391,112 | 1,940 | 1.99 | % | 354,229 | 1,653 | 1.89 | % | 344,931 | 1,498 | 1.73 | % | 329,293 | 1,423 | 1.72 | % | 325,893 | 1,433 | 1.77 | % | 372,772 | 3,620 | 1.96 | % | 321,123 | 2,832 | 1.77 | % | ||||||||||||||||||||||||||||||
| Tax-exempt | 28,970 | 150 | 2.08 | % | 31,485 | 164 | 2.11 | % | 34,985 | 175 | 1.99 | % | 37,893 | 189 | 1.98 | % | 39,193 | 187 | 1.92 | % | 30,221 | 314 | 2.10 | % | 39,925 | 378 | 1.90 | % | ||||||||||||||||||||||||||||||
| Total investment securities – available for sale | 420,082 | 2,090 | 2.00 | % | 385,714 | 1,817 | 1.91 | % | 379,916 | 1,673 | 1.75 | % | 367,186 | 1,612 | 1.75 | % | 365,086 | 1,620 | 1.78 | % | 402,993 | 3,934 | 1.97 | % | 361,048 | 3,210 | 1.79 | % | ||||||||||||||||||||||||||||||
| Investment securities – held to maturity | 5,181 | 5 | 0.39 | % | 3,702 | 7 | 0.77 | % | 2,889 | 7 | 0.96 | % | 2,907 | 6 | 0.82 | % | 2,427 | 4 | 0.66 | % | 4,446 | 4 | 0.18 | % | 1,214 | 4 | 0.66 | % | ||||||||||||||||||||||||||||||
| Investment securities – trading | 4,137 | 13 | 1.26 | % | 3,890 | 8 | 0.83 | % | 3,853 | 16 | 1.65 | % | 3,523 | 2 | 0.23 | % | 3,640 | 2 | 0.22 | % | 4,014 | 2 | 0.10 | % | 3,793 | 2 | 0.11 | % | ||||||||||||||||||||||||||||||
| Loans and leases * | 2,615,610 | 29,309 | 4.49 | % | 2,555,677 | 28,622 | 4.54 | % | 2,517,967 | 28,354 | 4.48 | % | 2,476,972 | 28,032 | 4.50 | % | 2,412,643 | 27,761 | 4.63 | % | 2,585,809 | 57,931 | 4.52 | % | 2,360,613 | 54,539 | 4.65 | % | ||||||||||||||||||||||||||||||
| Total interest-earning assets | 3,071,276 | 31,452 | 4.11 | % | 2,988,652 | 30,520 | 4.14 | % | 2,959,923 | 30,103 | 4.05 | % | 2,884,120 | 29,679 | 4.09 | % | 2,828,746 | 29,429 | 4.18 | % | 3,030,193 | 61,972 | 4.12 | % | 2,768,668 | 57,843 | 4.20 | % | ||||||||||||||||||||||||||||||
| Cash and due from banks | 15,727 | 14,942 | 16,127 | 16,228 | 16,413 | 15,336 | 16,457 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Less: allowance for loan and lease losses | (17,549 | ) | (17,580 | ) | (17,858 | ) | (17,257 | ) | (17,271 | ) | (17,564 | ) | (16,755 | ) | ||||||||||||||||||||||||||||||||||||||||||||
| Other assets | 263,853 | 258,046 | 257,676 | 258,928 | 262,065 | 260,963 | 263,180 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Total assets | $ | 3,333,307 | $ | 3,244,060 | $ | 3,215,868 | $ | 3,142,019 | $ | 3,089,953 | $ | 3,288,928 | $ | 3,031,550 | ||||||||||||||||||||||||||||||||||||||||||||
| Liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest-bearing deposits: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Savings, NOW and market rate deposits | $ | 1,375,949 | $ | 813 | 0.24 | % | $ | 1,388,561 | $ | 756 | 0.22 | % | $ | 1,328,577 | $ | 686 | 0.21 | % | $ | 1,286,404 | $ | 641 | 0.20 | % | $ | 1,273,964 | $ | 589 | 0.19 | % | $ | 1,382,220 | $ | 1,569 | 0.23 | % | $ | 1,276,797 | $ | 1,158 | 0.18 | % | ||||||||||||||||
| Wholesale deposits | 154,424 | 378 | 0.98 | % | 143,461 | 317 | 0.90 | % | 156,541 | 319 | 0.81 | % | 164,706 | 327 | 0.79 | % | 196,517 | 361 | 0.74 | % | 148,973 | 695 | 0.94 | % | 166,859 | 594 | 0.72 | % | ||||||||||||||||||||||||||||||
| Retail time deposits | 323,287 | 792 | 0.98 | % | 320,172 | 755 | 0.96 | % | 324,158 | 775 | 0.95 | % | 278,579 | 607 | 0.87 | % | 246,771 | 452 | 0.74 | % | 321,738 | 1,547 | 0.97 | % | 231,795 | 726 | 0.63 | % | ||||||||||||||||||||||||||||||
| Total interest-bearing deposits | 1,853,660 | 1,983 | 0.43 | % | 1,852,194 | 1,828 | 0.40 | % | 1,809,276 | 1,780 | 0.39 | % | 1,729,689 | 1,575 | 0.36 | % | 1,717,252 | 1,402 | 0.33 | % | 1,852,931 | 3,811 | 0.41 | % | 1,675,451 | 2,478 | 0.30 | % | ||||||||||||||||||||||||||||||
| Borrowings: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Short-term borrowings | 98,869 | 237 | 0.96 | % | 47,603 | 27 | 0.23 | % | 40,629 | 22 | 0.22 | % | 40,966 | 34 | 0.33 | % | 32,328 | 20 | 0.25 | % | 73,378 | 264 | 0.73 | % | 33,243 | 37 | 0.22 | % | ||||||||||||||||||||||||||||||
| Long-term FHLB advances | 171,567 | 682 | 1.59 | % | 182,507 | 698 | 1.55 | % | 198,454 | 760 | 1.52 | % | 218,920 | 818 | 1.49 | % | 236,248 | 867 | 1.48 | % | 177,006 | 1,380 | 1.57 | % | 243,131 | 1,775 | 1.47 | % | ||||||||||||||||||||||||||||||
| Subordinated notes | 29,550 | 370 | 5.02 | % | 29,537 | 370 | 5.08 | % | 29,523 | 370 | 4.99 | % | 29,509 | 370 | 4.99 | % | 29,496 | 370 | 5.05 | % | 29,544 | 740 | 5.05 | % | 29,489 | 736 | 5.02 | % | ||||||||||||||||||||||||||||||
| Total borrowings | 299,986 | 1,289 | 1.72 | % | 259,647 | 1,095 | 1.71 | % | 268,606 | 1,152 | 1.71 | % | 289,395 | 1,222 | 1.68 | % | 298,072 | 1,257 | 1.70 | % | 279,928 | 2,384 | 1.72 | % | 305,863 | 2,548 | 1.68 | % | ||||||||||||||||||||||||||||||
| Total interest-bearing liabilities | 2,153,646 | 3,272 | 0.61 | % | 2,111,841 | 2,923 | 0.56 | % | 2,077,882 | 2,932 | 0.56 | % | 2,019,084 | 2,797 | 0.55 | % | 2,015,324 | 2,659 | 0.53 | % | 2,132,859 | 6,195 | 0.59 | % | 1,981,314 | 5,026 | 0.51 | % | ||||||||||||||||||||||||||||||
| Noninterest-bearing deposits | 755,597 | 711,794 | 724,465 | 716,581 | 675,710 | 733,817 | 653,379 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Other liabilities | 34,348 | 38,211 | 35,478 | 33,400 | 32,804 | 36,266 | 33,363 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Total noninterest-bearing liabilities | 789,945 | 750,005 | 759,943 | 749,981 | 708,514 | 770,083 | 686,742 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Total liabilities | 2,943,591 | 2,861,846 | 2,837,825 | 2,769,065 | 2,723,838 | 2,902,942 | 2,668,056 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Shareholders’ equity | 389,716 | 382,214 | 378,043 | 372,954 | 366,115 | 385,986 | 363,494 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 3,333,307 | $ | 3,244,060 | $ | 3,215,868 | $ | 3,142,019 | $ | 3,089,953 | $ | 3,288,928 | $ | 3,031,550 | ||||||||||||||||||||||||||||||||||||||||||||
| Interest income to earning assets | 4.11 | % | 4.14 | % | 4.05 | % | 4.09 | % | 4.18 | % | 4.12 | % | 4.20 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Net interest spread | 3.50 | % | 3.58 | % | 3.49 | % | 3.54 | % | 3.65 | % | 3.53 | % | 3.69 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Effect of noninterest-bearing sources | 0.18 | % | 0.16 | % | 0.16 | % | 0.17 | % | 0.16 | % | 0.18 | % | 0.15 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Tax-equivalent net interest margin | $ | 28,180 | 3.68 | % | $ | 27,597 | 3.74 | % | $ | 27,171 | 3.65 | % | $ | 26,882 | 3.71 | % | $ | 26,770 | 3.81 | % | $ | 55,777 | 3.71 | % | $ | 52,817 | 3.84 | % | ||||||||||||||||||||||||||||||
| Tax-equivalent adjustment | $ | 215 | 0.02 | % | $ | 194 | 0.02 | % | $ | 181 | 0.02 | % | $ | 165 | 0.02 | % | $ | 143 | 0.02 | % | $ | 409 | 0.02 | % | $ | 288 | 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 | $ | 402 | 0.06 | % | $ | 726 | 0.12 | % | $ | 742 | 0.12 | % | $ | 578 | 0.09 | % | $ | 1,076 | 0.18 | % | $ | 1,128 | 0.09 | % | $ | 2,029 | 0.17 | % | ||||||||||||||||||||||||||||||
| Retail time deposits | (18 | ) | -0.02 | % | (19 | ) | -0.02 | % | (19 | ) | -0.02 | % | (29 | ) | -0.04 | % | (61 | ) | -0.10 | % | (37 | ) | -0.02 | % | (171 | ) | -0.15 | % | ||||||||||||||||||||||||||||||
| Short-term borrowings | – | 0.00 | % | – | 0.00 | % | – | 0.00 | % | – | 0.00 | % | – | 0.00 | % | – | 0.00 | % | (12 | ) | -0.07 | % | ||||||||||||||||||||||||||||||||||||
| Long-term FHLB advances and other borrowings | (30 | ) | -0.07 | % | (30 | ) | -0.07 | % | (30 | ) | -0.06 | % | (30 | ) | -0.05 | % | (30 | ) | -0.05 | % | (60 | ) | -0.07 | % | (60 | ) | -0.05 | % | ||||||||||||||||||||||||||||||
| Net interest income from fair value marks | $ | 450 | $ | 775 | $ | 791 | $ | 637 | $ | 1,167 | $ | 1,225 | $ | 2,272 | ||||||||||||||||||||||||||||||||||||||||||||
| Purchase accounting effect on tax-equivalent margin | 0.06 | % | 0.11 | % | 0.11 | % | 0.09 | % | 0.17 | % | 0.08 | % | 0.17 | % | ||||||||||||||||||||||||||||||||||||||||||||
| * 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, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | June 30, 2016 | June 30, 2017 | June 30, 2016 | ||||||||||||||||||||||
| Reconciliation of Net Income to Net Income (core): | ||||||||||||||||||||||||||||
| Net income (loss) (a GAAP measure) | $ | 9,433 | $ | 9,044 | $ | 9,408 | $ | 9,374 | $ | 8,933 | $ | 18,477 | # | $ | 17,255 | |||||||||||||
| Less: Tax-effected non-core noninterest income: | ||||||||||||||||||||||||||||
| Loss (gain) on sale of investment securities available for sale | – | (1 | ) | (6 | ) | 18 | 28 | (1 | ) | 38 | ||||||||||||||||||
| Add: Tax-effected non-core noninterest expense items: | ||||||||||||||||||||||||||||
| Loss on pension termination | – | – | – | – | – | – | – | |||||||||||||||||||||
| Severance expense (Salaries and wages) | – | – | – | – | – | – | – | |||||||||||||||||||||
| Branch lease termination expense | – | – | – | – | – | – | – | |||||||||||||||||||||
| Debt and swap prepayment penalty (Other operating expenses) | – | – | – | – | – | – | – | |||||||||||||||||||||
| Impairment of intangible assets | – | – | – | – | – | – | – | |||||||||||||||||||||
| Due diligence, merger-related and merger integration expenses | 803 | 332 | – | – | – | 1,136 | – | |||||||||||||||||||||
| Net income (core) (a non-GAAP measure) | $ | 10,236 | $ | 9,375 | $ | 9,402 | $ | 9,392 | $ | 8,961 | $ | 19,612 | $ | 17,293 | ||||||||||||||
| Calculation of Basic and Diluted Earnings per Common Share (core): | ||||||||||||||||||||||||||||
| Weighted average common shares outstanding | 16,984,563 | 16,954,132 | 16,916,705 | 16,860,727 | 16,812,219 | 16,969,431 | 16,830,211 | |||||||||||||||||||||
| Dilutive common shares | 248,204 | 228,557 | 247,970 | 211,631 | 215,200 | 238,381 | 123,905 | |||||||||||||||||||||
| Adjusted weighted average diluted shares | 17,232,767 | 17,182,689 | 17,164,675 | 17,072,358 | 17,027,419 | 17,207,812 | 16,954,116 | |||||||||||||||||||||
| Basic earnings per common share (core) (a non-GAAP measure) | $ | 0.60 | $ | 0.55 | $ | 0.56 | $ | 0.56 | $ | 0.53 | $ | 1.16 | $ | 1.03 | ||||||||||||||
| Diluted earnings per common share (core) (a non-GAAP measure) | $ | 0.59 | $ | 0.55 | $ | 0.55 | $ | 0.55 | $ | 0.53 | $ | 1.14 | $ | 1.02 | ||||||||||||||
| Calculation of Return on Average Tangible Equity: | ||||||||||||||||||||||||||||
| Net income (loss) | $ | 9,433 | $ | 9,044 | $ | 9,408 | $ | 9,374 | $ | 8,933 | $ | 18,477 | $ | 17,255 | ||||||||||||||
| Add: Tax-effected amortization and impairment of intangible assets | 447 | 450 | 540 | 577 | 578 | 898 | 1,157 | |||||||||||||||||||||
| Net tangible income (numerator) | $ | 9,880 | $ | 9,494 | $ | 9,948 | $ | 9,951 | $ | 9,511 | $ | 19,375 | $ | 18,412 | ||||||||||||||
| Average shareholders’ equity | $ | 389,716 | $ | 382,214 | $ | 378,043 | $ | 372,954 | $ | 366,115 | $ | 385,986 | $ | 363,494 | ||||||||||||||
| Less: Average goodwill and intangible assets | (126,537 | ) | (124,884 | ) | (125,614 | ) | (126,505 | ) | (127,402 | ) | (125,715 | ) | (127,849 | ) | ||||||||||||||
| Net average tangible equity (denominator) | $ | 263,179 | $ | 257,330 | $ | 252,429 | $ | 246,449 | $ | 238,713 | $ | 260,271 | $ | 235,645 | ||||||||||||||
| Return on tangible equity (a non-GAAP measure) | 15.06 | % | 14.96 | % | 15.68 | % | 16.06 | % | 16.02 | % | 15.01 | % | 15.71 | % | ||||||||||||||
| Calculation of Tangible Equity Ratio: | ||||||||||||||||||||||||||||
| Total shareholders’ equity | $ | 394,977 | $ | 388,095 | $ | 381,127 | $ | 378,459 | $ | 372,467 | ||||||||||||||||||
| Less: Goodwill and intangible assets | (129,211 | ) | (124,629 | ) | (125,170 | ) | (126,000 | ) | (126,888 | ) | ||||||||||||||||||
| Net tangible equity (numerator) | $ | 265,766 | $ | 263,466 | $ | 255,957 | $ | 252,459 | $ | 245,579 | ||||||||||||||||||
| Total assets | $ | 3,438,219 | $ | 3,292,617 | $ | 3,421,530 | $ | 3,174,080 | $ | 3,090,090 | ||||||||||||||||||
| Less: Goodwill and intangible assets | (129,211 | ) | (124,629 | ) | (125,170 | ) | (126,000 | ) | (126,888 | ) | ||||||||||||||||||
| Tangible assets (denominator) | $ | 3,309,008 | $ | 3,167,988 | $ | 3,296,360 | $ | 3,048,080 | $ | 2,963,202 | ||||||||||||||||||
| Tangible equity ratio | 8.03 | % | 8.32 | % | 7.76 | % | 8.28 | % | 8.29 | % | ||||||||||||||||||
| Calculation of Efficiency Ratio: | ||||||||||||||||||||||||||||
| Noninterest expense | $ | 28,495 | $ | 26,660 | $ | 25,087 | $ | 25,371 | $ | 26,220 | $ | 55,155 | $ | 51,310 | ||||||||||||||
| 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 | (688 | ) | (693 | ) | (830 | ) | (888 | ) | (889 | ) | (1,381 | ) | (1,780 | ) | ||||||||||||||
| Impairment of intangible assets | – | – | – | – | – | – | – | |||||||||||||||||||||
| Due diligence, merger-related and merger integration expenses | (1,235 | ) | (511 | ) | – | – | – | (1,747 | ) | – | ||||||||||||||||||
| Noninterest expense (adjusted) (numerator) | $ | 26,572 | $ | 25,456 | $ | 24,257 | $ | 24,483 | $ | 25,331 | $ | 52,027 | $ | 49,530 | ||||||||||||||
| Noninterest income | $ | 14,785 | $ | 13,227 | $ | 13,248 | $ | 13,786 | $ | 13,781 | $ | 28,012 | $ | 27,028 | ||||||||||||||
| Less: non-core noninterest income items: | ||||||||||||||||||||||||||||
| Loss (gain) on sale of investment securities available for sale | – | (2 | ) | (9 | ) | 28 | 43 | (1 | ) | 58 | ||||||||||||||||||
| Noninterest income (core) | $ | 14,785 | $ | 13,225 | $ | 13,239 | $ | 13,814 | $ | 13,824 | $ | 28,011 | $ | 27,086 | ||||||||||||||
| Net interest income | 27,965 | 27,403 | 26,990 | 26,717 | 26,627 | 55,368 | 52,529 | |||||||||||||||||||||
| Noninterest income (core) and net interest income (denominator) | $ | 42,750 | $ | 40,628 | $ | 40,229 | $ | 40,531 | $ | 40,451 | $ | 83,379 | $ | 79,615 | ||||||||||||||
| Efficiency ratio | 62.16 | % | 62.66 | % | 60.30 | % | 60.41 | % | 62.62 | % | 62.40 | % | 62.21 | % | ||||||||||||||
| * 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 | $ | 16,399 | $ | 17,107 | $ | 17,486 | $ | 17,744 | $ | 17,036 | ||||||||||||||||||
| less: Allowance on acquired loans | 25 | 38 | 28 | 28 | 28 | |||||||||||||||||||||||
| Allowance on originated loans and leases | $ | 16,374 | $ | 17,069 | $ | 17,458 | $ | 17,716 | $ | 17,008 | ||||||||||||||||||
| Total Allowance | $ | 16,399 | $ | 17,107 | $ | 17,486 | $ | 17,744 | $ | 17,036 | ||||||||||||||||||
| Loan mark on acquired loans | 11,084 | 11,544 | 12,286 | 13,391 | 14,566 | |||||||||||||||||||||||
| Total Allowance + Loan mark | $ | 27,483 | $ | 28,651 | $ | 29,772 | $ | 31,135 | $ | 31,602 | ||||||||||||||||||
| Total Portfolio loans and leases | $ | 2,666,651 | $ | 2,555,589 | $ | 2,535,425 | $ | 2,493,357 | $ | 2,423,821 | ||||||||||||||||||
| less: Originated loans and leases | 2,409,964 | 2,286,814 | 2,240,987 | 2,176,549 | 2,090,070 | |||||||||||||||||||||||
| Net acquired loans | $ | 256,687 | $ | 268,775 | $ | 294,438 | $ | 316,808 | $ | 333,751 | ||||||||||||||||||
| add: Loan mark on acquired loans | 11,084 | 11,544 | 12,286 | 13,391 | 14,566 | |||||||||||||||||||||||
| Gross acquired loans (excludes loan mark) | $ | 267,771 | $ | 280,319 | $ | 306,724 | $ | 330,199 | $ | 348,317 | ||||||||||||||||||
| Originated loans and leases | 2,409,964 | 2,286,814 | 2,240,987 | 2,176,549 | 2,090,070 | |||||||||||||||||||||||
| Total Gross portfolio loans and leases | $ | 2,677,735 | $ | 2,567,133 | $ | 2,547,711 | $ | 2,506,748 | $ | 2,438,387 | ||||||||||||||||||
CONTACT: FOR MORE INFORMATION CONTACT: Frank Leto, President, CEO 610-581-4730 Mike Harrington, CFO 610-526-2466