BRYN MAWR, Pa., Oct. 19, 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 $10.7 million and diluted earnings per share of $0.62 for the three months ended September 30, 2017, as compared to net income of $9.4 million, or $0.55 diluted earnings per share, for the three months ended June 30, 2017, and $9.4 million, or $0.55 diluted earnings per share, for the three months ended September 30, 2016. Included in net income for the three months ended September 30, 2017 and June 30, 2017 were pre-tax due diligence and merger-related expenses of $850 thousand and $1.2 million, respectively, primarily related to the pending merger with Royal Bancshares of Pennsylvania, Inc. (“Royal Bank”).
On a non-GAAP basis, core net income, which excludes certain non-core income and expense items, as detailed in the appendix to this earnings release, was $11.2 million, or $0.65 diluted earnings per share, for the three months ended September 30, 2017 as compared to $10.2 million, or $0.59 diluted earnings per share, for the three months ended June 30, 2017 and $9.4 million, or $0.55 diluted earnings per share, for the three months ended September 30, 2016. Management believes the core net income measure is important in evaluating the Corporation’s performance on a more comparable basis between periods. A reconciliation of this and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release.
“The Corporation continued to produce solid results in the quarter, benefiting from our focus on new business development and the strategic investments we have made over the last few years in both revenue generation as well as enabling technologies,” commented Frank Leto, President and Chief Executive Officer, adding, “As a result, we saw growth in both net interest income as well as fee income during the quarter with very little increase in expenses, net of merger costs, driving our return on average equity over one percent higher in the quarter, when compared to last quarter.”
Mr. Leto continued, “The preparations for the merger with Royal Bank continue as we await final regulatory approval. Staff and management have been working diligently to ensure a smooth transition and we expect the transaction to close during the fourth quarter of 2017”. In addition to regulatory approval, the merger with Royal Bank is subject to certain closing conditions.
On October 19, 2017, the Board of Directors of the Corporation declared a quarterly dividend of $0.22 per share, payable December 1, 2017 to shareholders of record as of November 1, 2017.
SIGNIFICANT ITEMS OF NOTE
Results of Operations – Third Quarter 2017 Compared to Second Quarter 2017
- Net income for the three months ended September 30, 2017 was $10.7 million, or $0.62 diluted earnings per share, as compared to $9.4 million, or $0.55 diluted earnings per share for the three months ended June 30, 2017. Contributing to the increase was a $1.5 million increase in net interest income, a $430 thousand increase in insurance revenues and a $279 thousand increase in gain on sale of loans. In addition to these improving revenue items, linked-quarter decreases of $386 thousand and $310 thousand in due diligence and merger-related expenses and professional fees, respectively, contributed to the improvement in net income. The decrease in the effective tax rate from 34.2% for the second quarter of 2017 to 30.7% for the third quarter of 2017 was the result of a $581 thousand increase in excess tax benefit primarily related to the vesting of restricted stock awards during the third quarter of 2017. Partially offsetting these positive changes to net income was a $1.4 million increase in the provision for loan and lease losses (the “Provision”) from the second quarter to the third quarter of 2017.
- Tax-equivalent net interest income for the three months ended September 30, 2017 was $29.6 million, an increase of $1.5 million, or 5.2%, from $28.1 million for the three months ended June 30, 2017. The accretion of purchase accounting adjustments increased the tax-equivalent net interest income recorded for the third quarter of 2017 by $753 thousand, as compared to an increase of $450 thousand for the three months ended June 30, 2017.
Average loans and leases for the three months ended September 30, 2017 increased by $64.7 million from the three months ended June 30, 2017 and experienced an eleven basis point increase in tax-equivalent yield. The increase in the prime rate, which occurred toward the end of the second quarter, contributed to the increase in tax-equivalent yield on loans, as did the accretion of purchase accounting adjustments, which totaled $708 thousand for the third quarter of 2017 as compared to $402 thousand for the second quarter of 2017. Excluding the effect of the accretion of purchase accounting adjustments on loans and leases, the tax-equivalent yield on loans and leases increased by seven basis points on a linked-quarter basis. The net effect of the yield and volume increases on average loans and leases was a $1.7 million increase in tax-equivalent interest income on loans and leases from the second quarter of 2017 to the third quarter of 2017.Average available for sale investment securities increased by $32.3 million for the three months ended September 30, 2017 as compared to the three months ended June 30, 2017, and experienced a one basis point tax-equivalent yield increase. The increase in volume and yield on available for sale investment securities resulted in a $204 thousand increase in tax-equivalent interest income for the third quarter of 2017 as compared to the second quarter of 2017.
Partially offsetting the increase in average loans and leases and available for sale investment securities was a $17.8 million increase in average interest-bearing deposits accompanied by a four basis point increase in rate paid on deposits resulting in a $215 thousand increase in interest expense on deposits for the third quarter of 2017 as compared to the second quarter of 2017. In addition to the increase in average deposits, average borrowings increased $68.3 million for the three months ended September 30, 2017 as compared to the three months ended June 30, 2017, with the rate paid decreasing by four basis points. The volume increase and rate decrease resulted in a $273 thousand increase in interest expense on borrowings on a linked-quarter basis.
- The tax-equivalent net interest margin of 3.71% for the third quarter of 2017 increased three basis points from 3.68% for the second quarter of 2017. During the third quarter of 2017, the accretion of purchase accounting adjustments contributed nine basis points to the tax-equivalent net interest margin as compared to a contribution of six basis points for the three months ended June 30, 2017. As a result, excluding the effect of the accretion of purchase accounting adjustments, the tax-equivalent net interest margin remained unchanged on a linked-quarter basis.
- Noninterest income for the three months ended September 30, 2017 increased by $799 thousand from the second quarter of 2017. Largely contributing to this increase was an increase of $430 thousand in insurance revenues, as the impact of the May 24, 2017 acquisition of Hirshorn Boothby was experienced for a full quarter, and a $279 thousand increase in gain on sale of loans, primarily related to the sale of SBA-guaranteed loans. Partially offsetting these increases were decreases of $156 thousand in fees for wealth management services, as some of the fees for tax-related services during the second quarter of 2017 were not repeated in the third quarter, and a $110 thousand linked-quarter decrease in capital markets revenue.
- Noninterest expense for the three months ended September 30, 2017 decreased $311 thousand, to $28.2 million, as compared to $28.5 million for the second quarter of 2017. The $310 thousand decrease in professional fees was partially related to second quarter 2017 initial start-up costs associated with BMT Investment Advisers, a subsidiary established to advise the Corporation’s new proprietary mutual fund, the BMT Multi-Cap Fund (MUTF:BMTMX). In addition, due diligence and merger-related expenses decreased by $386 thousand between the periods. These decreases were partially offset by increases of $238 thousand and $211 thousand in occupancy and bank premises expense and other operating expenses, respectively.
- For the three months ended September 30, 2017, net loan and lease charge-offs totaled $728 thousand, as compared to $625 thousand for the second quarter of 2017. The Provision for the three months ended September 30, 2017 was $1.3 million, a $1.4 million increase from the $83 thousand release from the allowance for loan and lease losses (the “Allowance”) for the second quarter of 2017. The increase in the Provision was driven by loan growth as well as changes to certain qualitative factors used to estimate the incurred loan and lease losses in the loan portfolio as of September 30, 2017.
- Income tax expense for the third quarter of 2017 decreased by $139 thousand as compared to the second quarter of 2017. The 347 basis point decrease in the effective tax rate from the second quarter of 2017 to the third quarter of 2017 was primarily the result of recognizing excess tax benefits associated with the vesting of restricted stock awards and the exercise of stock options. Excess tax benefits totaled $694 thousand for the third quarter of 2017 as compared to $113 thousand for the second quarter of 2017.
Results of Operations – Third Quarter 2017 Compared to Third Quarter 2016
- Net income for the three months ended September 30, 2017 was $10.7 million, or $0.62 diluted earnings per share, as compared to $9.4 million, or diluted earnings per share of $0.55, for the same period in 2016. Contributing to the increase in net income was an increase of $2.7 million in net interest income and a $1.8 million increase in noninterest income, with wealth management, insurance and capital markets performance contributing to the increase. Partially offsetting these increases was a $2.8 million increase in noninterest expense, with increases in salaries and wages and due diligence and merger-related expenses being offset by decreases in Pennsylvania bank shares tax, amortization of intangible assets and professional fees.
- Tax-equivalent net interest income for the three months ended September 30, 2017 was $29.6 million, an increase of $2.7 million, or 10.3%, from $26.9 million for the same period in 2016. The accretion of purchase accounting adjustments increased the tax-equivalent net interest income recorded for the third quarter of 2017 by $753 thousand, as compared to an increase of $637 thousand for the same period in 2016.
Average loans and leases for the three months ended September 30, 2017 increased by $203.3 million from the same period in 2016 and experienced a ten basis point increase in tax-equivalent yield. The increase in the prime rate, which occurred toward the end of the second quarter, contributed to the increase in tax-equivalent yield on loans, as did the accretion of purchase accounting adjustments, which totaled $708 thousand for the third quarter of 2017 as compared to $578 thousand for the same period in 2017. Excluding the effect of the accretion of purchase accounting adjustments on loans and leases, the tax-equivalent yield on loans and leases increased by nine basis points. The net effect of the yield and volume increases on average loans and leases was a $3.0 million increase in tax-equivalent interest income on loans.
Average available for sale investment securities increased by $85.2 million for the three months ended September 30, 2017 as compared to the same period in 2016, and experienced a 26 basis point tax-equivalent yield increase. The increase in volume and yield on available for sale investment securities resulted in a $682 thousand increase in tax-equivalent interest income for the third quarter of 2017 as compared to the same period in 2016.
Partially offsetting the increase in average loans and leases and available for sale investment securities was a $141.8 million increase in average interest-bearing deposits accompanied by an eleven basis point increase in rate paid on deposits resulting in a $623 thousand increase in interest expense on deposits for the third quarter of 2017 as compared to the same period in 2016. In addition to the increase in average deposits, average borrowings increased $78.9 million for the three months ended September 30, 2017 as compared to the same period in 2016 with the rate paid remaining unchanged, which resulted in a $340 thousand increase in interest expense on borrowings.
- The tax-equivalent net interest margin of 3.71% for the three months ended September 30, 2017 remained unchanged from the same period in 2016. The contribution to the tax-equivalent margin from the accretion of purchase accounting adjustments for both periods also remained unchanged at nine basis points.
- Noninterest income for the three months ended September 30, 2017 increased by $1.8 million from the same period in 2016. An increase of $551 thousand in fees for wealth management services resulted as wealth assets under management, administration, supervision and brokerage increased $2.46 billion from September 30, 2016 to September 30, 2017. Insurance revenue increased $487 thousand for the third quarter of 2017 as compared to the same period in 2016, largely due to the May 2017 acquisition of Hirshorn Boothby. In addition, revenue from our Capital Markets initiative, which was launched in the second quarter of 2017, contributed $843 thousand to noninterest income.
- Noninterest expense for the three months ended September 30, 2017 increased $2.8 million from the same period in 2016. The increase was largely related to a $2.0 million increase in salary and wages due to staffing increases from our Capital Markets initiative, the Hirshorn Boothby acquisition and the Princeton wealth management office, annual salary and wage increases and increases in incentive compensation. In addition, an $850 thousand increase in due diligence, merger-related and merger integration costs primarily related to the Royal Bank merger, and a $597 thousand increase in other operating expenses, which included a $368 thousand increase in contributions, largely comprised of contributions to local schools under the Pennsylvania Educational Improvement Tax Credit (EITC) program, contributed to the increase. Contributions made through the EITC program result in tax credits towards the Bank’s Pennsylvania bank shares tax obligation.
- For the three months ended September 30, 2017, a Provision of $1.3 million was recorded as compared to $1.4 million for the same period in 2016. Net charge-offs for the third quarter of 2017 were $728 thousand as compared to $704 thousand for the same period in 2016.
Financial Condition – September 30, 2017 Compared to December 31, 2016
- Total portfolio loans and leases of $2.68 billion as of September 30, 2017, increased by $141.9 million from December 31, 2016. Loan growth was concentrated in the commercial mortgage and commercial and industrial segments of the portfolio, which increased by $113.7 million, or 10.2%, and $17.8 million, or 3.1%, respectively.
- The Allowance as of September 30, 2017 was $17.0 million, or 0.64% of portfolio loans as compared to $17.5 million, or 0.69% of portfolio loans and leases as of December 31, 2016. In addition to the ratio of Allowance to portfolio loans, management also calculates two non-GAAP measures: the Allowance as a percentage of originated loans and leases, which was 0.70% as of September 30, 2017, as compared to 0.78% as of December 31, 2016, and the Allowance plus the remaining loan mark as a percentage of gross loans, which was 1.01% as of September 30, 2017, as compared to 1.17% as of December 31, 2016. A reconciliation of these and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release. The change in the Allowance ratios was the result of the growth of the loan portfolio and improvements in certain qualitative factors and economic indicators, along with decreases in certain historic charge-off rates over the lookback period.
- Available for sale investment securities as of September 30, 2017 totaled $471.7 million, a decrease of $95.3 million from December 31, 2016. The decrease in available for sale investment securities was primarily the result of the maturing, in January 2017, of $200 million of short-term U.S. Treasury bills. Partially offsetting the effect of this decrease in U.S. Treasury bills were increases of $104.7 million in available for sale investment securities since December 31, 2016, primarily in U.S. government and agency bonds and mortgage-backed securities. A portion of this increase is related to the strategic repositioning of the investment portfolio in anticipation of the Royal Bank merger.
- Total assets as of September 30, 2017 were $3.48 billion, an increase of $55.3 million from December 31, 2016. Increases in portfolio loans and leases were largely offset by a decrease in available for sale investment securities discussed in the previous bullet point.
- Wealth assets under management, administration, supervision and brokerage totaled $12.43 billion as of September 30, 2017, an increase of $1.10 billion from December 31, 2016. The increase in wealth assets was comprised of a $456.9 million increase in account balances whose fees are based on market value, and a $646.0 million increase in fixed rate flat-fee account types.
- Deposits of $2.68 billion as of September 30, 2017 increased $104.5 million from December 31, 2016. Over 76% of this increase was in interest-bearing deposits, which grew by $80.1 million.
- Borrowings of $315.5 million as of September 30, 2017 decreased $78.4 million from December 31, 2016. The decrease was comprised of a $23.3 million decrease in short-term borrowings and a $55.1 million decrease in long-term FHLB advances. In January 2017, $200.0 million of short-term borrowings associated with the maturing of $200.0 million of short-term U.S. Treasury bills were repaid. The net increase in short-term borrowings of $176.7 million was utilized to support loan growth, purchases of available for sale investment securities and to replace $55.1 million of long-term FHLB advances which matured during the first nine months of 2017.
- The capital ratios for the Bank and the Corporation, as of September 30, 2017, as shown in the attached tables, indicate levels above the regulatory minimum to be considered “well capitalized.”
FORWARD LOOKING STATEMENTS AND SAFE HARBOR
This press release contains statements which, to the extent that they are not recitations of historical fact may constitute forward-looking statements for purposes of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. Such forward-looking statements may include financial and other projections as well as statements regarding the Corporation’s future plans, objectives, performance, revenues, growth, profits, operating expenses or the Corporation’s underlying assumptions. The words “may,” “would,” “should,” “could,” “will,” “likely,” “possibly,” “expect,” “anticipate,” “intend,” “indicate,” “estimate,” “target,” “potentially,” “promising,” “probably,” “outlook,” “predict,” “contemplate,” “continue,” “plan,” “forecast,” “project,” “are optimistic,” “are looking,” “are looking forward” and “believe” or other similar words and phrases may identify forward-looking statements. Persons reading this press release are cautioned that such statements are only predictions, and that the Corporation’s actual future results or performance may be materially different.
Such forward-looking statements involve known and unknown risks and uncertainties. A number of factors, many of which are beyond the Corporation’s control, could cause our actual results, events or developments, or industry results, to be materially different from any future results, events or developments expressed, implied or anticipated by such forward-looking statements, and so our business and financial condition and results of operations could be materially and adversely affected. Such factors include, among others, our inability to obtain applicable regulatory approvals with respect to, or our inability to complete, the contemplated Royal Bank acquisition, that the integration of acquired businesses with the Corporation may take longer than anticipated or be more costly to complete and that the anticipated benefits, including any anticipated cost savings or strategic gains may be significantly harder to achieve or take longer than anticipated or may not be achieved, our need for capital, our ability to control operating costs and expenses, and to manage loan and lease delinquency rates; the credit risks of lending activities and overall quality of the composition of our loan, lease and securities portfolio; the impact of economic conditions, consumer and business spending habits, and real estate market conditions on our business and in our market area; changes in the levels of general interest rates, deposit interest rates, or net interest margin and funding sources; changes in banking regulations and policies and the possibility that any banking agency approvals we might require for certain activities will not be obtained in a timely manner or at all or will be conditioned in a manner that would impair our ability to implement our business plans; changes in accounting policies and practices; the inability of key third-party providers to perform their obligations to us; our ability to attract and retain key personnel; competition in our marketplace; war or terrorist activities; material differences in the actual financial results, cost savings and revenue enhancements associated with our acquisitions; and other factors as described in our securities filings. All forward-looking statements and information set forth herein are based on management’s current beliefs and assumptions as of the date hereof and speak only as of the date they are made. The Corporation does not undertake to update forward-looking statements.
For a complete discussion of the assumptions, risks and uncertainties related to our business, you are encouraged to review our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K, as updated by our quarterly or other reports subsequently filed with the SEC.
FOR MORE INFORMATION CONTACT:
Frank Leto, President, CEO
610-581-4730
Mike Harrington, CFO
610-526-2466
| Bryn Mawr Bank Corporation | ||||||||||||||||||||||||||||
| Summary Financial Information (unaudited) | ||||||||||||||||||||||||||||
| (dollars in thousands, except per share data) | ||||||||||||||||||||||||||||
| As of or For the Three Months Ended | For the Nine Months Ended | |||||||||||||||||||||||||||
| September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | September 30, 2017 | September 30, 2016 | ||||||||||||||||||||||
| Consolidated Balance Sheet (selected items) | ||||||||||||||||||||||||||||
| Interest-bearing deposits with banks | $ | 36,870 | $ | 30,806 | $ | 69,978 | $ | 34,206 | $ | 30,118 | ||||||||||||||||||
| Investment securities (AFS, HTM and Trading) | 482,399 | 452,869 | 400,360 | 573,763 | 373,508 | |||||||||||||||||||||||
| Loans held for sale | 6,327 | 8,590 | 3,015 | 9,621 | 11,506 | |||||||||||||||||||||||
| Portfolio loans and leases | 2,677,345 | 2,666,651 | 2,555,589 | 2,535,425 | 2,493,357 | |||||||||||||||||||||||
| Allowance for loan and lease losses (“ALLL”) | (17,004 | ) | (16,399 | ) | (17,107 | ) | (17,486 | ) | (17,744 | ) | ||||||||||||||||||
| Goodwill and other intangible assets | 128,534 | 129,211 | 124,629 | 125,170 | 126,000 | |||||||||||||||||||||||
| Total assets | 3,476,821 | 3,438,219 | 3,292,617 | 3,421,530 | 3,174,080 | |||||||||||||||||||||||
| Deposits – interest-bearing | 1,923,567 | 1,863,288 | 1,865,009 | 1,843,495 | 1,759,862 | |||||||||||||||||||||||
| Deposits – non-interest-bearing | 760,614 | 818,475 | 771,556 | 736,180 | 718,015 | |||||||||||||||||||||||
| Short-term borrowings | 180,874 | 130,295 | 23,613 | 204,151 | 50,065 | |||||||||||||||||||||||
| Long-term FHLB advances and other borrowings | 134,651 | 164,681 | 174,711 | 189,742 | 204,772 | |||||||||||||||||||||||
| Subordinated notes | 29,573 | 29,559 | 29,546 | 29,532 | 29,518 | |||||||||||||||||||||||
| Total liabilities | 3,074,929 | 3,043,242 | 2,904,522 | 3,040,403 | 2,795,621 | |||||||||||||||||||||||
| Shareholders’ equity | 401,892 | 394,977 | 388,095 | 381,127 | 378,459 | |||||||||||||||||||||||
| Average Balance Sheet (selected items) | ||||||||||||||||||||||||||||
| Interest-bearing deposits with banks | $ | 26,628 | $ | 26,266 | $ | 39,669 | $ | 55,298 | $ | 33,532 | $ | 30,807 | $ | 39,157 | ||||||||||||||
| Investment securities (AFS, HTM and Trading) | 462,700 | 429,400 | 393,306 | 386,658 | 373,616 | 428,723 | 368,594 | |||||||||||||||||||||
| Loans held for sale | 3,728 | 3,855 | 4,238 | 11,591 | 12,887 | 3,938 | 8,752 | |||||||||||||||||||||
| Portfolio loans and leases | 2,676,589 | 2,611,755 | 2,551,439 | 2,506,376 | 2,464,085 | 2,613,720 | 2,390,931 | |||||||||||||||||||||
| Total interest-earning assets | 3,169,645 | 3,071,276 | 2,988,652 | 2,959,923 | 2,884,120 | 3,077,188 | 2,807,434 | |||||||||||||||||||||
| Goodwill and intangible assets | 128,917 | 126,537 | 124,884 | 125,614 | 126,505 | 126,794 | 127,398 | |||||||||||||||||||||
| Total assets | 3,441,906 | 3,333,307 | 3,244,060 | 3,215,868 | 3,142,019 | 3,340,484 | 3,068,642 | |||||||||||||||||||||
| Deposits – interest-bearing | 1,871,494 | 1,853,660 | 1,852,194 | 1,809,276 | 1,729,689 | 1,859,188 | 1,693,663 | |||||||||||||||||||||
| Short-term borrowings | 182,845 | 98,869 | 47,603 | 40,629 | 40,966 | 110,268 | 35,836 | |||||||||||||||||||||
| Long-term FHLB advances | 155,918 | 171,567 | 182,507 | 198,454 | 218,920 | 169,900 | 235,002 | |||||||||||||||||||||
| Subordinated notes | 29,564 | 29,550 | 29,537 | 29,523 | 29,509 | 29,550 | 29,496 | |||||||||||||||||||||
| Total interest-bearing liabilities | 2,239,821 | 2,153,646 | 2,111,841 | 2,077,882 | 2,019,084 | 2,168,906 | 1,993,997 | |||||||||||||||||||||
| Total liabilities | 3,044,549 | 2,943,591 | 2,861,846 | 2,837,825 | 2,769,065 | 2,950,666 | 2,701,973 | |||||||||||||||||||||
| Shareholders’ equity | 397,357 | 389,716 | 382,214 | 378,043 | 372,954 | 389,818 | 366,669 | |||||||||||||||||||||
| Income Statement | ||||||||||||||||||||||||||||
| Net interest income | $ | 29,438 | $ | 27,965 | $ | 27,403 | $ | 26,990 | $ | 26,717 | $ | 84,806 | $ | 79,246 | ||||||||||||||
| Provision for loan and lease losses | 1,333 | (83 | ) | 291 | 1,059 | 1,412 | 1,541 | 3,267 | ||||||||||||||||||||
| Noninterest income | 15,584 | 14,785 | 13,227 | 13,248 | 13,786 | 43,596 | 40,920 | |||||||||||||||||||||
| Noninterest expense | 28,184 | 28,495 | 26,660 | 25,087 | 25,371 | 83,339 | 76,787 | |||||||||||||||||||||
| Income tax expense | 4,766 | 4,905 | 4,635 | 4,684 | 4,346 | 14,306 | 13,484 | |||||||||||||||||||||
| Net income | 10,739 | 9,433 | 9,044 | 9,408 | 9,374 | 29,216 | 26,628 | |||||||||||||||||||||
| Basic earnings per share | 0.63 | 0.56 | 0.53 | 0.56 | 0.56 | 1.72 | 1.58 | |||||||||||||||||||||
| Diluted earnings per share | 0.62 | 0.55 | 0.53 | 0.55 | 0.55 | 1.70 | 1.57 | |||||||||||||||||||||
| Net income (core) (1) | 11,245 | 10,236 | 9,375 | 9,402 | 9,392 | 30,857 | 26,684 | |||||||||||||||||||||
| Basic earnings per share (core) (1) | 0.66 | 0.60 | 0.55 | 0.56 | 0.56 | 1.82 | 1.58 | |||||||||||||||||||||
| Diluted earnings per share (core) (1) | 0.65 | 0.59 | 0.55 | 0.55 | 0.55 | 1.79 | 1.57 | |||||||||||||||||||||
| Cash dividends paid per share | 0.22 | 0.21 | 0.21 | 0.21 | 0.21 | 0.64 | 0.61 | |||||||||||||||||||||
| Profitability Indicators | ||||||||||||||||||||||||||||
| Return on average assets | 1.24 | % | 1.14 | % | 1.13 | % | 1.16 | % | 1.19 | % | 1.17 | % | 1.16 | % | ||||||||||||||
| Return on average equity | 10.72 | % | 9.71 | % | 9.60 | % | 9.90 | % | 10.00 | % | 10.02 | % | 9.70 | % | ||||||||||||||
| Return on tangible equity(1) | 16.52 | % | 15.06 | % | 14.96 | % | 15.68 | % | 16.06 | % | 23.42 | % | 15.83 | % | ||||||||||||||
| Tax-equivalent net interest margin | 3.71 | % | 3.68 | % | 3.74 | % | 3.65 | % | 3.71 | % | 3.71 | % | 3.79 | % | ||||||||||||||
| Efficiency ratio(1) | 59.30 | % | 62.16 | % | 62.66 | % | 60.30 | % | 60.41 | % | 61.32 | % | 61.64 | % | ||||||||||||||
| Mortgage Banking Information | ||||||||||||||||||||||||||||
| Mortgage loans originated | $ | 48,159 | $ | 46,848 | $ | 48,550 | $ | 78,749 | $ | 84,885 | $ | 143,557 | $ | 201,310 | ||||||||||||||
| Residential mortgage loans sold – servicing retained | 28,224 | 21,790 | 27,690 | 44,763 | 40,462 | 77,704 | 93,371 | |||||||||||||||||||||
| Residential mortgage loans sold – servicing released | 4,982 | 3,819 | 4,981 | 4,632 | 10,522 | 13,782 | 18,197 | |||||||||||||||||||||
| Total residential mortgage loans sold | $ | 33,206 | $ | 25,609 | $ | 32,671 | $ | 49,395 | $ | 50,984 | $ | 91,486 | $ | 111,568 | ||||||||||||||
| Residential mortgage loans serviced for others | $ | 647,037 | $ | 641,165 | $ | 638,553 | $ | 631,889 | $ | 618,134 | ||||||||||||||||||
| Share Data | ||||||||||||||||||||||||||||
| Closing share price | $ | 43.80 | $ | 42.50 | $ | 39.50 | $ | 42.15 | $ | 31.99 | ||||||||||||||||||
| Book value per common share | $ | 23.57 | $ | 23.25 | $ | 22.87 | $ | 22.50 | $ | 22.40 | ||||||||||||||||||
| Tangible book value per common share | $ | 16.03 | $ | 15.64 | $ | 15.53 | $ | 15.11 | $ | 14.94 | ||||||||||||||||||
| Price / book value | 185.82 | % | 182.81 | % | 172.71 | % | 187.34 | % | 142.80 | % | ||||||||||||||||||
| Price / tangible book value | 273.19 | % | 271.69 | % | 254.41 | % | 278.96 | % | 214.07 | % | ||||||||||||||||||
| Weighted average diluted shares outstanding | 17,233,548 | 17,232,767 | 17,182,689 | 17,164,675 | 17,072,358 | 17,222,051 | 16,994,455 | |||||||||||||||||||||
| Shares outstanding, end of period | 17,050,151 | 16,989,849 | 16,969,451 | 16,939,715 | 16,893,878 | |||||||||||||||||||||||
| Wealth Management Information: | ||||||||||||||||||||||||||||
| Wealth assets under mgmt, administration, supervision and brokerage (2) | $ | 12,431,370 | $ | 12,050,555 | $ | 11,725,460 | $ | 11,328,457 | $ | 9,969,745 | ||||||||||||||||||
| Fees for wealth management services | $ | 9,651 | $ | 9,807 | $ | 9,303 | $ | 9,327 | $ | 9,100 | ||||||||||||||||||
| Capital Ratios | ||||||||||||||||||||||||||||
| Bryn Mawr Trust Company | ||||||||||||||||||||||||||||
| Tier I capital to risk weighted assets (“RWA”) | 10.78 | % | 10.29 | % | 10.58 | % | 10.50 | % | 10.99 | % | ||||||||||||||||||
| Total (Tier II) capital to RWA | 11.42 | % | 10.90 | % | 11.25 | % | 11.19 | % | 11.70 | % | ||||||||||||||||||
| Tier I leverage ratio | 8.75 | % | 8.76 | % | 8.83 | % | 8.73 | % | 9.17 | % | ||||||||||||||||||
| Tangible equity ratio (1) | 8.46 | % | 8.24 | % | 8.46 | % | 7.85 | % | 8.85 | % | ||||||||||||||||||
| Common equity Tier I capital to RWA | 10.78 | % | 10.29 | % | 10.58 | % | 10.50 | % | 10.99 | % | ||||||||||||||||||
| Bryn Mawr Bank Corporation | ||||||||||||||||||||||||||||
| Tier I capital to RWA | 10.50 | % | 10.10 | % | 10.50 | % | 10.51 | % | 10.42 | % | ||||||||||||||||||
| Total (Tier II) capital to RWA | 12.23 | % | 11.79 | % | 12.30 | % | 12.35 | % | 12.30 | % | ||||||||||||||||||
| Tier I leverage ratio | 8.53 | % | 8.63 | % | 8.77 | % | 8.73 | % | 8.70 | % | ||||||||||||||||||
| Tangible equity ratio (1) | 8.16 | % | 8.03 | % | 8.32 | % | 7.76 | % | 8.28 | % | ||||||||||||||||||
| Common equity Tier I capital to RWA | 10.50 | % | 10.10 | % | 10.50 | % | 10.51 | % | 10.42 | % | ||||||||||||||||||
| Asset Quality Indicators | ||||||||||||||||||||||||||||
| Net loan and lease charge-offs (“NCO”s) | $ | 728 | $ | 625 | $ | 670 | $ | 1,317 | $ | 704 | $ | 2,023 | $ | 1,380 | ||||||||||||||
| Nonperforming loans and leases (“NPL”s) | $ | 4,472 | $ | 7,237 | $ | 7,329 | $ | 8,363 | $ | 9,883 | ||||||||||||||||||
| Other real estate owned (“OREO”) | 865 | 1,122 | 978 | 1,017 | 867 | |||||||||||||||||||||||
| Total nonperforming assets (“NPA”s) | $ | 5,337 | $ | 8,359 | $ | 8,307 | $ | 9,380 | $ | 10,750 | ||||||||||||||||||
| Nonperforming loans and leases 30 or more days past due | $ | 2,337 | $ | 4,076 | $ | 5,097 | $ | 6,072 | $ | 6,684 | ||||||||||||||||||
| Performing loans and leases 30 to 89 days past due | 4,558 | 6,258 | 6,077 | 3,062 | 2,537 | |||||||||||||||||||||||
| Performing loans and leases 90 or more days past due | – | – | – | – | – | |||||||||||||||||||||||
| Total delinquent loans and leases | $ | 6,895 | $ | 10,334 | $ | 11,174 | $ | 9,134 | $ | 9,221 | ||||||||||||||||||
| Delinquent loans and leases to total loans and leases | 0.26 | % | 0.39 | % | 0.44 | % | 0.36 | % | 0.37 | % | ||||||||||||||||||
| Delinquent performing loans and leases to total loans and leases | 0.17 | % | 0.23 | % | 0.24 | % | 0.12 | % | 0.10 | % | ||||||||||||||||||
| NCOs / average loans and leases (annualized) | 0.11 | % | 0.10 | % | 0.11 | % | 0.21 | % | 0.11 | % | 0.10 | % | 0.08 | % | ||||||||||||||
| NPLs / total portfolio loans and leases | 0.17 | % | 0.27 | % | 0.29 | % | 0.33 | % | 0.40 | % | ||||||||||||||||||
| NPAs / total loans and leases and OREO | 0.20 | % | 0.31 | % | 0.32 | % | 0.37 | % | 0.43 | % | ||||||||||||||||||
| NPAs / total assets | 0.15 | % | 0.24 | % | 0.25 | % | 0.27 | % | 0.34 | % | ||||||||||||||||||
| ALLL / NPLs | 380.23 | % | 226.60 | % | 233.42 | % | 209.09 | % | 179.54 | % | ||||||||||||||||||
| ALLL / portfolio loans | 0.64 | % | 0.61 | % | 0.67 | % | 0.69 | % | 0.71 | % | ||||||||||||||||||
| ALLL on originated loans and leases / Originated loans and leases (1) | 0.70 | % | 0.68 | % | 0.75 | % | 0.78 | % | 0.81 | % | ||||||||||||||||||
| (Total Allowance + Loan mark) / Total Gross portfolio loans and leases (1) | 1.01 | % | 1.03 | % | 1.12 | % | 1.17 | % | 1.24 | % | ||||||||||||||||||
| Troubled debt restructurings (“TDR”s) included in NPLs | $ | 2,033 | $ | 2,470 | $ | 2,681 | $ | 2,632 | $ | 1,680 | ||||||||||||||||||
| TDRs in compliance with modified terms | 6,597 | 6,148 | 6,492 | 6,395 | 6,305 | |||||||||||||||||||||||
| Total TDRs | $ | 8,630 | $ | 8,618 | $ | 9,173 | $ | 9,027 | $ | 7,985 | ||||||||||||||||||
(1)Non-GAAP measure – see Appendix for Non-GAAP to GAAP reconciliation.
(2)Brokerage assets represent assets held at a registered broker dealer under a clearing agreement.
| Bryn Mawr Bank Corporation | ||||||||||||||||||||||
| Detailed Balance Sheets (unaudited) | ||||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||
| September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | ||||||||||||||||||
| Assets | ||||||||||||||||||||||
| Cash and due from banks | $ | 8,682 | $ | 19,352 | $ | 17,457 | $ | 16,559 | $ | 18,905 | ||||||||||||
| Interest-bearing deposits with banks | 36,870 | 30,806 | 69,978 | 34,206 | 30,118 | |||||||||||||||||
| Cash and cash equivalents | 45,552 | 50,158 | 87,435 | 50,765 | 49,023 | |||||||||||||||||
| Investment securities, available for sale | 471,721 | 443,687 | 391,028 | 566,996 | 366,910 | |||||||||||||||||
| Investment securities, held to maturity | 6,255 | 5,161 | 5,194 | 2,879 | 2,896 | |||||||||||||||||
| Investment securities, trading | 4,423 | 4,021 | 4,138 | 3,888 | 3,702 | |||||||||||||||||
| Loans held for sale | 6,327 | 8,590 | 3,015 | 9,621 | 11,506 | |||||||||||||||||
| Portfolio loans and leases, originated | 2,433,054 | 2,409,964 | 2,286,814 | 2,240,987 | 2,176,549 | |||||||||||||||||
| Portfolio loans and leases, acquired | 244,291 | 256,687 | 268,775 | 294,438 | 316,808 | |||||||||||||||||
| Total portfolio loans and leases | 2,677,345 | 2,666,651 | 2,555,589 | 2,535,425 | 2,493,357 | |||||||||||||||||
| Less: Allowance for losses on originated loan and leases | (16,957 | ) | (16,374 | ) | (17,069 | ) | (17,458 | ) | (17,716 | ) | ||||||||||||
| Less: Allowance for losses on acquired loan and leases | (47 | ) | (25 | ) | (38 | ) | (28 | ) | (28 | ) | ||||||||||||
| Total allowance for loan and lease losses | (17,004 | ) | (16,399 | ) | (17,107 | ) | (17,486 | ) | (17,744 | ) | ||||||||||||
| Net portfolio loans and leases | 2,660,341 | 2,650,252 | 2,538,482 | 2,517,939 | 2,475,613 | |||||||||||||||||
| Premises and equipment | 44,544 | 44,446 | 40,515 | 41,778 | 42,559 | |||||||||||||||||
| Accrued interest receivable | 9,287 | 8,717 | 8,392 | 8,533 | 8,066 | |||||||||||||||||
| Mortgage servicing rights | 5,732 | 5,683 | 5,686 | 5,582 | 4,793 | |||||||||||||||||
| Bank owned life insurance | 39,881 | 39,680 | 39,479 | 39,279 | 39,055 | |||||||||||||||||
| Federal Home Loan Bank (“FHLB”) stock | 16,248 | 15,168 | 8,505 | 17,305 | 13,185 | |||||||||||||||||
| Goodwill | 107,127 | 107,127 | 104,765 | 104,765 | 104,765 | |||||||||||||||||
| Intangible assets | 21,407 | 22,084 | 19,864 | 20,405 | 21,235 | |||||||||||||||||
| Other investments | 8,941 | 8,682 | 8,716 | 8,627 | 9,121 | |||||||||||||||||
| Other assets | 29,035 | 24,763 | 27,403 | 23,168 | 21,651 | |||||||||||||||||
| Total assets | $ | 3,476,821 | $ | 3,438,219 | $ | 3,292,617 | $ | 3,421,530 | $ | 3,174,080 | ||||||||||||
| Liabilities | ||||||||||||||||||||||
| Deposits | ||||||||||||||||||||||
| Noninterest-bearing | $ | 760,614 | $ | 818,475 | $ | 771,556 | $ | 736,180 | $ | 718,015 | ||||||||||||
| Interest-bearing | 1,923,567 | 1,863,288 | 1,865,009 | 1,843,495 | 1,759,862 | |||||||||||||||||
| Total deposits | 2,684,181 | 2,681,763 | 2,636,565 | 2,579,675 | 2,477,877 | |||||||||||||||||
| Short-term borrowings | 180,874 | 130,295 | 23,613 | 204,151 | 50,065 | |||||||||||||||||
| Long-term FHLB advances | 134,651 | 164,681 | 174,711 | 189,742 | 204,772 | |||||||||||||||||
| Subordinated notes | 29,573 | 29,559 | 29,546 | 29,532 | 29,518 | |||||||||||||||||
| Accrued interest payable | 2,267 | 2,830 | 2,722 | 2,734 | 1,854 | |||||||||||||||||
| Other liabilities | 43,383 | 34,114 | 37,365 | 34,569 | 31,535 | |||||||||||||||||
| Total liabilities | 3,074,929 | 3,043,242 | 2,904,522 | 3,040,403 | 2,795,621 | |||||||||||||||||
| Shareholders’ equity | ||||||||||||||||||||||
| Common stock | 21,248 | 21,162 | 21,141 | 21,111 | 21,064 | |||||||||||||||||
| Paid-in capital in excess of par value | 235,412 | 234,654 | 233,910 | 232,806 | 231,398 | |||||||||||||||||
| Less: common stock held in treasury, at cost | (68,134 | ) | (67,091 | ) | (66,969 | ) | (66,950 | ) | (66,895 | ) | ||||||||||||
| Accumulated other comprehensive (loss) income, net of tax | (1,400 | ) | (1,564 | ) | (1,990 | ) | (2,409 | ) | 2,128 | |||||||||||||
| Retained earnings | 214,766 | 207,816 | 202,003 | 196,569 | 190,764 | |||||||||||||||||
| Total shareholders equity | 401,892 | 394,977 | 388,095 | 381,127 | 378,459 | |||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 3,476,821 | $ | 3,438,219 | $ | 3,292,617 | $ | 3,421,530 | $ | 3,174,080 | ||||||||||||
| Bryn Mawr Bank Corporation | |||||||||||||||||||||||
| Supplemental Balance Sheet Information (unaudited) | |||||||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||||||
| Portfolio Loans and Leases as of | |||||||||||||||||||||||
| September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | |||||||||||||||||||
| Commercial mortgages | $ | 1,224,571 | $ | 1,197,936 | $ | 1,137,870 | $ | 1,110,897 | $ | 1,089,621 | |||||||||||||
| Home equity loans and lines | 206,974 | 208,480 | 203,962 | 208,000 | 206,578 | ||||||||||||||||||
| Residential mortgages | 422,524 | 416,488 | 418,264 | 413,540 | 418,408 | ||||||||||||||||||
| Construction | 133,505 | 156,581 | 145,699 | 141,964 | 133,269 | ||||||||||||||||||
| Total real estate loans | 1,987,574 | 1,979,485 | 1,905,795 | 1,874,401 | 1,847,876 | ||||||||||||||||||
| Commercial & Industrial | 597,595 | 599,203 | 567,917 | 579,791 | 565,497 | ||||||||||||||||||
| Consumer | 31,306 | 28,485 | 23,932 | 25,341 | 23,717 | ||||||||||||||||||
| Leases | 60,870 | 59,478 | 57,945 | 55,892 | 56,267 | ||||||||||||||||||
| Total non-real estate loans and leases | 689,771 | 687,166 | 649,794 | 661,024 | 645,481 | ||||||||||||||||||
| Total portfolio loans and leases | $ | 2,677,345 | $ | 2,666,651 | $ | 2,555,589 | $ | 2,535,425 | $ | 2,493,357 | |||||||||||||
| Nonperforming Loans and Leases as of | |||||||||||||||||||||||
| September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | |||||||||||||||||||
| Commercial mortgages | $ | 193 | $ | 818 | $ | 315 | $ | 320 | $ | 139 | |||||||||||||
| Home equity loans and lines | 613 | 1,535 | 1,828 | 2,289 | 2,827 | ||||||||||||||||||
| Residential mortgages | 1,589 | 2,589 | 2,640 | 2,658 | 2,845 | ||||||||||||||||||
| Construction | – | – | – | – | – | ||||||||||||||||||
| Total nonperforming real estate loans | 2,395 | 4,942 | 4,783 | 5,267 | 5,811 | ||||||||||||||||||
| Commercial & Industrial | 1,977 | 2,112 | 2,471 | 2,957 | 3,960 | ||||||||||||||||||
| Consumer | – | 10 | – | 2 | 2 | ||||||||||||||||||
| Leases | 100 | 173 | 75 | 137 | 110 | ||||||||||||||||||
| Total nonperforming non-real estate loans and leases | 2,077 | 2,295 | 2,546 | 3,096 | 4,072 | ||||||||||||||||||
| Total nonperforming portfolio loans and leases | $ | 4,472 | $ | 7,237 | $ | 7,329 | $ | 8,363 | $ | 9,883 | |||||||||||||
| Net Loan and Lease Charge-Offs (Recoveries) for the Three Months Ended | |||||||||||||||||||||||
| September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | |||||||||||||||||||
| Commercial mortgage | $ | (3 | ) | $ | (3 | ) | $ | (3 | ) | $ | (51 | ) | $ | (4 | ) | ||||||||
| Home equity loans and lines | 69 | 169 | 438 | 69 | 375 | ||||||||||||||||||
| Residential | 3 | 43 | 27 | 28 | 2 | ||||||||||||||||||
| Construction | (1 | ) | (1 | ) | (1 | ) | (1 | ) | – | ||||||||||||||
| Total net charge-offs of real estate loans | 68 | 208 | 461 | 45 | 373 | ||||||||||||||||||
| Commercial & Industrial | 298 | 185 | 59 | 1,128 | 95 | ||||||||||||||||||
| Consumer | 36 | 16 | 39 | 42 | 58 | ||||||||||||||||||
| Leases | 326 | 216 | 111 | 102 | 178 | ||||||||||||||||||
| Total net charge-offs of non-real estate loans and leases | 660 | 417 | 209 | 1,272 | 331 | ||||||||||||||||||
| Total net charge-offs | $ | 728 | $ | 625 | $ | 670 | $ | 1,317 | $ | 704 | |||||||||||||
| Bryn Mawr Bank Corporation | ||||||||||||||||||||||
| Supplemental Balance Sheet Information (unaudited) | ||||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||
| Investment Securities Available for Sale, at Fair Value | ||||||||||||||||||||||
| September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | ||||||||||||||||||
| U.S. Treasury securities | $ | 100 | $ | 100 | $ | 100 | $ | 200,097 | $ | 101 | ||||||||||||
| Obligations of the U.S. Government and agencies | 142,711 | 126,468 | 100,476 | 82,198 | 76,598 | |||||||||||||||||
| State & political subdivisions – tax-free | 23,556 | 26,958 | 30,416 | 33,005 | 36,735 | |||||||||||||||||
| State & political subdivisions – taxable | 524 | 524 | 524 | 525 | 529 | |||||||||||||||||
| Mortgage-backed securities | 260,680 | 230,617 | 197,420 | 185,951 | 184,919 | |||||||||||||||||
| Collateralized mortgage obligations | 39,595 | 42,549 | 45,476 | 48,694 | 51,344 | |||||||||||||||||
| Other debt securities | 1,100 | 1,099 | 1,299 | 1,299 | 1,450 | |||||||||||||||||
| Bond mutual funds | – | 11,956 | 11,920 | 11,895 | 11,847 | |||||||||||||||||
| Other investments | 3,455 | 3,416 | 3,397 | 3,332 | 3,387 | |||||||||||||||||
| Total investment securities available for sale, at fair value | $ | 471,721 | $ | 443,687 | $ | 391,028 | $ | 566,996 | $ | 366,910 | ||||||||||||
| Unrealized Gain (Loss) on Investment Securities Available for Sale | ||||||||||||||||||||||
| September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | ||||||||||||||||||
| U.S. Treasury securities | $ | – | $ | – | $ | – | $ | 3 | $ | – | ||||||||||||
| Obligations of the U.S. Government and agencies | (920 | ) | (699 | ) | (803 | ) | (913 | ) | 946 | |||||||||||||
| State & political subdivisions – tax-free | 23 | 11 | (10 | ) | (96 | ) | 131 | |||||||||||||||
| State & political subdivisions – taxable | 1 | 1 | 1 | 2 | 5 | |||||||||||||||||
| Mortgage-backed securities | 869 | 480 | 196 | (47 | ) | 3,801 | ||||||||||||||||
| Collateralized mortgage obligations | (640 | ) | (662 | ) | (777 | ) | (794 | ) | 253 | |||||||||||||
| Other debt securities | – | (1 | ) | (1 | ) | (1 | ) | – | ||||||||||||||
| Bond mutual funds | – | – | (36 | ) | (61 | ) | (109 | ) | ||||||||||||||
| Other investments | 230 | 203 | 132 | 13 | 34 | |||||||||||||||||
| Total unrealized (losses) gains on investment securities available for sale | $ | (437 | ) | $ | (667 | ) | $ | (1,298 | ) | $ | (1,894 | ) | $ | 5,061 | ||||||||
| Deposits | ||||||||||||||||||||||
| September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | ||||||||||||||||||
| Interest-bearing deposits: | ||||||||||||||||||||||
| Interest-bearing checking | $ | 395,383 | $ | 381,345 | $ | 395,131 | $ | 379,424 | $ | 333,055 | ||||||||||||
| Money market | 720,613 | 729,859 | 757,071 | 761,657 | 725,116 | |||||||||||||||||
| Savings | 264,273 | 254,903 | 255,791 | 232,193 | 228,391 | |||||||||||||||||
| Wholesale non-maturity deposits | 48,620 | 54,675 | 69,471 | 74,272 | 64,664 | |||||||||||||||||
| Wholesale time deposits | 178,610 | 120,524 | 68,164 | 73,037 | 99,052 | |||||||||||||||||
| Retail time deposits | 316,068 | 321,982 | 319,381 | 322,912 | 309,584 | |||||||||||||||||
| Total interest-bearing deposits | 1,923,567 | 1,863,288 | 1,865,009 | 1,843,495 | 1,759,862 | |||||||||||||||||
| Noninterest-bearing deposits | 760,614 | 818,475 | 771,556 | 736,180 | 718,015 | |||||||||||||||||
| Total deposits | $ | 2,684,181 | $ | 2,681,763 | $ | 2,636,565 | $ | 2,579,675 | $ | 2,477,877 | ||||||||||||
| Bryn Mawr Bank Corporation | ||||||||||||||||||||||||||||
| Detailed Income Statements (unaudited) | ||||||||||||||||||||||||||||
| (dollars in thousands, except per share data) | ||||||||||||||||||||||||||||
| For the Three Months Ended | For the Nine Months Ended | |||||||||||||||||||||||||||
| September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | September 30, 2017 | September 30, 2016 | ||||||||||||||||||||||
| Interest income: | ||||||||||||||||||||||||||||
| Interest and fees on loans and leases | $ | 30,892 | $ | 29,143 | $ | 28,482 | $ | 28,230 | $ | 27,931 | $ | 88,517 | $ | 82,306 | ||||||||||||||
| Interest on cash and cash equivalents | 36 | 35 | 66 | 53 | 27 | 137 | 115 | |||||||||||||||||||||
| Interest on investment securities | 2,270 | 2,059 | 1,778 | 1,639 | 1,556 | 6,107 | 4,648 | |||||||||||||||||||||
| Total interest income | 33,198 | 31,237 | 30,326 | 29,922 | 29,514 | 94,761 | 87,069 | |||||||||||||||||||||
| Interest expense: | ||||||||||||||||||||||||||||
| Interest on deposits | 2,198 | 1,983 | 1,828 | 1,780 | 1,575 | 6,009 | 4,053 | |||||||||||||||||||||
| Interest on short-term borrowings | 547 | 237 | 27 | 22 | 34 | 811 | 71 | |||||||||||||||||||||
| Interest on FHLB advances and other borrowings | 645 | 682 | 698 | 760 | 818 | 2,025 | 2,593 | |||||||||||||||||||||
| Interest on subordinated notes | 370 | 370 | 370 | 370 | 370 | 1,110 | 1,106 | |||||||||||||||||||||
| Total interest expense | 3,760 | 3,272 | 2,923 | 2,932 | 2,797 | 9,955 | 7,823 | |||||||||||||||||||||
| Net interest income | 29,438 | 27,965 | 27,403 | 26,990 | 26,717 | 84,806 | 79,246 | |||||||||||||||||||||
| Provision for loan and lease losses (the “Provision”) | 1,333 | (83 | ) | 291 | 1,059 | 1,412 | 1,541 | 3,267 | ||||||||||||||||||||
| Net interest income after Provision | 28,105 | 28,048 | 27,112 | 25,931 | 25,305 | 83,265 | 75,979 | |||||||||||||||||||||
| Noninterest income: | ||||||||||||||||||||||||||||
| Fees for wealth management services | 9,651 | 9,807 | 9,303 | 9,327 | 9,100 | 28,761 | 27,363 | |||||||||||||||||||||
| Insurance revenue | 1,373 | 943 | 763 | 715 | 886 | 3,079 | 3,007 | |||||||||||||||||||||
| Capital markets revenue | 843 | 953 | – | – | – | 1,796 | – | |||||||||||||||||||||
| Service charges on deposits | 676 | 630 | 647 | 688 | 688 | 1,953 | 2,103 | |||||||||||||||||||||
| Loan servicing and other fees | 548 | 519 | 503 | 411 | 497 | 1,570 | 1,528 | |||||||||||||||||||||
| Net gain on sale of loans | 799 | 520 | 629 | 607 | 879 | 1,948 | 2,440 | |||||||||||||||||||||
| Net gain (loss) on sale of investment securities available for sale | 72 | – | 1 | 9 | (28 | ) | 73 | (86 | ) | |||||||||||||||||||
| Net (loss) gain on sale of other real estate owned | – | (12 | ) | – | – | – | (12 | ) | (76 | ) | ||||||||||||||||||
| Dividends on FHLB and FRB stocks | 217 | 218 | 214 | 309 | 277 | 649 | 754 | |||||||||||||||||||||
| Other operating income | 1,405 | 1,207 | 1,167 | 1,182 | 1,487 | 3,779 | 3,686 | |||||||||||||||||||||
| Total noninterest income | 15,584 | 14,785 | 13,227 | 13,248 | 13,786 | 43,596 | 40,719 | |||||||||||||||||||||
| Noninterest expense: | ||||||||||||||||||||||||||||
| Salaries and wages | 13,602 | 13,580 | 12,450 | 11,855 | 11,621 | 39,632 | 35,556 | |||||||||||||||||||||
| Employee benefits | 2,631 | 2,475 | 2,559 | 2,207 | 2,420 | 7,665 | 7,341 | |||||||||||||||||||||
| Loss on pension termination | – | – | – | – | – | – | – | |||||||||||||||||||||
| Occupancy and bank premises | 2,485 | 2,247 | 2,526 | 2,407 | 2,349 | 7,258 | 7,204 | |||||||||||||||||||||
| Branch lease termination expense | – | – | – | – | – | – | – | |||||||||||||||||||||
| Furniture, fixtures and equipment | 1,726 | 1,869 | 1,974 | 1,869 | 1,837 | 5,569 | 5,651 | |||||||||||||||||||||
| Advertising | 277 | 405 | 386 | 391 | 334 | 1,068 | 990 | |||||||||||||||||||||
| Amortization of intangible assets | 677 | 687 | 693 | 830 | 888 | 2,057 | 2,668 | |||||||||||||||||||||
| Impairment of intangible assets | – | – | – | – | – | – | – | |||||||||||||||||||||
| Impairment (recovery) of mortgage servicing rights (“MSRs”) | 3 | 43 | 3 | (580 | ) | 29 | 49 | 711 | ||||||||||||||||||||
| Due diligence, merger-related and merger integration expenses | 850 | 1,236 | 511 | – | – | 2,597 | – | |||||||||||||||||||||
| Professional fees | 739 | 1,049 | 711 | 963 | 937 | 2,499 | 2,696 | |||||||||||||||||||||
| Pennsylvania bank shares tax | 317 | 297 | 664 | (204 | ) | 675 | 1,278 | 1,953 | ||||||||||||||||||||
| Information technology | 880 | 821 | 874 | 857 | 881 | 2,575 | 2,804 | |||||||||||||||||||||
| Other operating expenses | 3,997 | 3,786 | 3,309 | 4,492 | 3,400 | 11,092 | 9,012 | |||||||||||||||||||||
| Total noninterest expense | 28,184 | 28,495 | 26,660 | 25,087 | 25,371 | 83,339 | 76,586 | |||||||||||||||||||||
| Income before income taxes | 15,505 | 14,338 | 13,679 | 14,092 | 13,720 | 43,522 | 40,112 | |||||||||||||||||||||
| Income tax expense | 4,766 | 4,905 | 4,635 | 4,684 | 4,346 | 14,306 | 13,484 | |||||||||||||||||||||
| Net income | $ | 10,739 | $ | 9,433 | $ | 9,044 | $ | 9,408 | $ | 9,374 | $ | 29,216 | $ | 26,628 | ||||||||||||||
| Per share data: | ||||||||||||||||||||||||||||
| Weighted average shares outstanding | 17,023,046 | 16,984,563 | 16,954,132 | 16,916,705 | 16,860,727 | 16,987,499 | 16,840,457 | |||||||||||||||||||||
| Dilutive common shares | 210,502 | 248,204 | 228,557 | 247,970 | 211,631 | 234,552 | 153,998 | |||||||||||||||||||||
| Weighted average diluted shares | 17,233,548 | 17,232,767 | 17,182,689 | 17,164,675 | 17,072,358 | 17,222,051 | 16,994,455 | |||||||||||||||||||||
| Basic earnings (loss) per common share | $ | 0.63 | $ | 0.56 | $ | 0.53 | $ | 0.56 | $ | 0.56 | $ | 1.72 | $ | 1.58 | ||||||||||||||
| Diluted earnings (loss) per common share | $ | 0.62 | $ | 0.55 | $ | 0.53 | $ | 0.55 | $ | 0.55 | $ | 1.70 | $ | 1.57 | ||||||||||||||
| Dividend declared per share | $ | 0.22 | $ | 0.21 | $ | 0.21 | $ | 0.21 | $ | 0.21 | $ | 0.64 | $ | 0.61 | ||||||||||||||
| Effective tax rate | 30.74 | % | 34.21 | % | 33.88 | % | 33.24 | % | 31.68 | % | 32.87 | % | 33.62 | % | ||||||||||||||
| Bryn Mawr Bank Corporation | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Tax-Equivalent Net Interest Margin (unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (dollars in thousands, except per share data) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| For The Three Months Ended | For The Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | September 30, 2017 | September 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| (dollars in thousands) | Average Balance | Interest Income/ Expense | Average Rates Earned/ Paid | Average Balance | Interest Income/ Expense | Average Rates Earned/ Paid | Average Balance | Interest Income/ Expense | Average Rates Earned/ Paid | Average Balance | Interest Income/ Expense | Average Rates Earned/ Paid | Average Balance | Interest Income/ Expense | Average Rates Earned/ Paid | Average Balance | Interest Income/ Expense | Average Rates Earned/ Paid | Average Balance | Interest Income/ Expense | Average Rates Earned/ Paid | |||||||||||||||||||||||||||||||||||||
| Assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest-bearing deposits with other banks | $ | 26,628 | $ | 36 | 0.54 | % | $ | 26,266 | $ | 35 | 0.53 | % | $ | 39,669 | $ | 66 | 0.67 | % | $ | 55,298 | $ | 53 | 0.38 | % | $ | 33,532 | $ | 27 | 0.32 | % | $ | 30,807 | $ | 137 | 0.59 | % | $ | 39,157 | $ | 115 | 0.39 | % | ||||||||||||||||
| Investment securities – available for sale: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Taxable | 427,106 | 2,160 | 2.01 | % | 391,112 | 1,940 | 1.99 | % | 354,229 | 1,653 | 1.89 | % | 344,931 | 1,498 | 1.73 | % | 329,293 | 1,423 | 1.72 | % | 391,082 | 5,799 | 1.98 | % | 323,866 | 4,263 | 1.76 | % | ||||||||||||||||||||||||||||||
| Tax-exempt | 25,268 | 134 | 2.10 | % | 28,970 | 150 | 2.08 | % | 31,485 | 164 | 2.11 | % | 34,985 | 175 | 1.99 | % | 37,893 | 189 | 1.98 | % | 28,552 | 448 | 2.10 | % | 39,243 | 567 | 1.93 | % | ||||||||||||||||||||||||||||||
| Total investment securities – available for sale | 452,374 | 2,294 | 2.01 | % | 420,082 | 2,090 | 2.00 | % | 385,714 | 1,817 | 1.91 | % | 379,916 | 1,673 | 1.75 | % | 367,186 | 1,612 | 1.75 | % | 419,634 | 6,247 | 1.99 | % | 363,109 | 4,830 | 1.78 | % | ||||||||||||||||||||||||||||||
| Investment securities – held to maturity | 6,044 | 11 | 0.72 | % | 5,181 | 5 | 0.39 | % | 3,702 | 7 | 0.77 | % | 2,889 | 7 | 0.96 | % | 2,907 | 6 | 0.82 | % | 4,984 | 4 | 0.11 | % | 1,782 | 4 | 0.30 | % | ||||||||||||||||||||||||||||||
| Investment securities – trading | 4,282 | 8 | 0.74 | % | 4,137 | 13 | 1.26 | % | 3,890 | 8 | 0.83 | % | 3,853 | 16 | 1.65 | % | 3,523 | 2 | 0.23 | % | 4,105 | 2 | 0.07 | % | 3,703 | 2 | 0.07 | % | ||||||||||||||||||||||||||||||
| Loans and leases * | 2,680,317 | 31,058 | 4.60 | % | 2,615,610 | 29,309 | 4.49 | % | 2,555,677 | 28,622 | 4.54 | % | 2,517,967 | 28,354 | 4.48 | % | 2,476,972 | 28,032 | 4.50 | % | 2,617,658 | 88,989 | 4.55 | % | 2,399,683 | 82,571 | 4.60 | % | ||||||||||||||||||||||||||||||
| Total interest-earning assets | 3,169,645 | 33,407 | 4.18 | % | 3,071,276 | 31,452 | 4.11 | % | 2,988,652 | 30,520 | 4.14 | % | 2,959,923 | 30,103 | 4.05 | % | 2,884,120 | 29,679 | 4.09 | % | 3,077,188 | 95,379 | 4.14 | % | 2,807,434 | 87,522 | 4.16 | % | ||||||||||||||||||||||||||||||
| Cash and due from banks | 15,709 | 15,727 | 14,942 | 16,127 | 16,228 | 15,462 | 16,380 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Less: allowance for loan and lease losses | (16,564 | ) | (17,549 | ) | (17,580 | ) | (17,858 | ) | (17,257 | ) | (17,227 | ) | (16,924 | ) | ||||||||||||||||||||||||||||||||||||||||||||
| Other assets | 273,116 | 263,853 | 258,046 | 257,676 | 258,928 | 265,061 | 261,752 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Total assets | $ | 3,441,906 | $ | 3,333,307 | $ | 3,244,060 | $ | 3,215,868 | $ | 3,142,019 | $ | 3,340,484 | $ | 3,068,642 | ||||||||||||||||||||||||||||||||||||||||||||
| Liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest-bearing deposits: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Savings, NOW and market rate deposits | $ | 1,359,293 | $ | 823 | 0.24 | % | $ | 1,375,949 | $ | 813 | 0.24 | % | $ | 1,388,561 | $ | 756 | 0.22 | % | $ | 1,328,577 | $ | 686 | 0.21 | % | $ | 1,286,404 | $ | 641 | 0.20 | % | $ | 1,374,494 | $ | 2,392 | 0.23 | % | $ | 1,280,023 | $ | 1,799 | 0.19 | % | ||||||||||||||||
| Wholesale deposits | 190,849 | 548 | 1.14 | % | 154,424 | 378 | 0.98 | % | 143,461 | 317 | 0.90 | % | 156,541 | 319 | 0.81 | % | 164,706 | 327 | 0.79 | % | 163,086 | 1,243 | 1.02 | % | 166,136 | 921 | 0.74 | % | ||||||||||||||||||||||||||||||
| Retail time deposits | 321,352 | 827 | 1.02 | % | 323,287 | 792 | 0.98 | % | 320,172 | 755 | 0.96 | % | 324,158 | 775 | 0.95 | % | 278,579 | 607 | 0.87 | % | 321,608 | 2,374 | 0.99 | % | 247,504 | 1,333 | 0.72 | % | ||||||||||||||||||||||||||||||
| Total interest-bearing deposits | 1,871,494 | 2,198 | 0.47 | % | 1,853,660 | 1,983 | 0.43 | % | 1,852,194 | 1,828 | 0.40 | % | 1,809,276 | 1,780 | 0.39 | % | 1,729,689 | 1,575 | 0.36 | % | 1,859,188 | 6,009 | 0.43 | % | 1,693,663 | 4,053 | 0.32 | % | ||||||||||||||||||||||||||||||
| Borrowings: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Short-term borrowings | 182,845 | 547 | 1.19 | % | 98,869 | 237 | 0.96 | % | 47,603 | 27 | 0.23 | % | 40,629 | 22 | 0.22 | % | 40,966 | 34 | 0.33 | % | 110,268 | 811 | 0.98 | % | 35,836 | 71 | 0.26 | % | ||||||||||||||||||||||||||||||
| Long-term FHLB advances | 155,918 | 645 | 1.64 | % | 171,567 | 682 | 1.59 | % | 182,507 | 698 | 1.55 | % | 198,454 | 760 | 1.52 | % | 218,920 | 818 | 1.49 | % | 169,900 | 2,025 | 1.59 | % | 235,002 | 2,593 | 1.47 | % | ||||||||||||||||||||||||||||||
| Subordinated notes | 29,564 | 370 | 4.97 | % | 29,550 | 370 | 5.02 | % | 29,537 | 370 | 5.08 | % | 29,523 | 370 | 4.99 | % | 29,509 | 370 | 4.99 | % | 29,550 | 1,110 | 5.02 | % | 29,496 | 1,106 | 5.01 | % | ||||||||||||||||||||||||||||||
| Total borrowings | 368,327 | 1,562 | 1.68 | % | 299,986 | 1,289 | 1.72 | % | 259,647 | 1,095 | 1.71 | % | 268,606 | 1,152 | 1.71 | % | 289,395 | 1,222 | 1.68 | % | 309,718 | 3,946 | 1.70 | % | 300,334 | 3,770 | 1.68 | % | ||||||||||||||||||||||||||||||
| Total interest-bearing liabilities | 2,239,821 | 3,760 | 0.67 | % | 2,153,646 | 3,272 | 0.61 | % | 2,111,841 | 2,923 | 0.56 | % | 2,077,882 | 2,932 | 0.56 | % | 2,019,084 | 2,797 | 0.55 | % | 2,168,906 | 9,955 | 0.61 | % | 1,993,997 | 7,823 | 0.52 | % | ||||||||||||||||||||||||||||||
| Noninterest-bearing deposits | 764,562 | 755,597 | 711,794 | 724,465 | 716,581 | 744,178 | 674,601 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Other liabilities | 40,166 | 34,348 | 38,211 | 35,478 | 33,400 | 37,582 | 33,375 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Total noninterest-bearing liabilities | 804,728 | 789,945 | 750,005 | 759,943 | 749,981 | 781,760 | 707,976 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Total liabilities | 3,044,549 | 2,943,591 | 2,861,846 | 2,837,825 | 2,769,065 | 2,950,666 | 2,701,973 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Shareholders’ equity | 397,357 | 389,716 | 382,214 | 378,043 | 372,954 | 389,818 | 366,669 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 3,441,906 | $ | 3,333,307 | $ | 3,244,060 | $ | 3,215,868 | $ | 3,142,019 | $ | 3,340,484 | $ | 3,068,642 | ||||||||||||||||||||||||||||||||||||||||||||
| Net interest spread | 3.51 | % | 3.50 | % | 3.58 | % | 3.49 | % | 3.54 | % | 3.53 | % | 3.64 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Effect of noninterest-bearing sources | 0.20 | % | 0.18 | % | 0.16 | % | 0.16 | % | 0.17 | % | 0.18 | % | 0.15 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Tax-equivalent net interest margin | $ | 29,647 | 3.71 | % | $ | 28,180 | 3.68 | % | $ | 27,597 | 3.74 | % | $ | 27,171 | 3.65 | % | $ | 26,882 | 3.71 | % | $ | 85,424 | 3.71 | % | $ | 79,699 | 3.79 | % | ||||||||||||||||||||||||||||||
| Tax-equivalent adjustment | $ | 209 | 0.03 | % | $ | 215 | 0.03 | % | $ | 194 | 0.02 | % | $ | 181 | 0.02 | % | $ | 165 | 0.02 | % | $ | 618 | 0.03 | % | $ | 453 | 0.02 | % | ||||||||||||||||||||||||||||||
| Supplemental Information Regarding Accretion of Fair Value Marks | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest Income (Expense) Effect | Effect on Yield or Rate | Interest Income (Expense) Effect | Effect on Yield or Rate | Interest Income (Expense) Effect | Effect on Yield or Rate | Interest Income (Expense) Effect | Effect on Yield or Rate | Interest Income (Expense) Effect | Effect on Yield or Rate | Interest Income (Expense) Effect | Effect on Yield or Rate | Interest Income (Expense) Effect | Effect on Yield or Rate | |||||||||||||||||||||||||||||||||||||||||||||
| Loans and leases | $ | 708 | 0.10 | % | $ | 402 | 0.06 | % | $ | 726 | 0.12 | % | $ | 742 | 0.12 | % | $ | 578 | 0.09 | % | $ | 1,836 | 0.09 | % | $ | 2,607 | 0.15 | % | ||||||||||||||||||||||||||||||
| Retail time deposits | (15 | ) | -0.02 | % | (18 | ) | -0.02 | % | (19 | ) | -0.02 | % | (19 | ) | -0.02 | % | (29 | ) | -0.04 | % | (52 | ) | -0.02 | % | (200 | ) | -0.11 | % | ||||||||||||||||||||||||||||||
| Short-term borrowings | – | 0.00 | % | – | 0.00 | % | – | 0.00 | % | – | 0.00 | % | – | 0.00 | % | – | 0.00 | % | (12 | ) | -0.04 | % | ||||||||||||||||||||||||||||||||||||
| Long-term FHLB advances and other borrowings | (30 | ) | -0.08 | % | (30 | ) | -0.07 | % | (30 | ) | -0.07 | % | (30 | ) | -0.06 | % | (30 | ) | -0.05 | % | (91 | ) | -0.07 | % | (90 | ) | -0.05 | % | ||||||||||||||||||||||||||||||
| Net interest income from fair value marks | $ | 753 | $ | 450 | $ | 775 | $ | 791 | $ | 637 | $ | 1,979 | $ | 2,909 | ||||||||||||||||||||||||||||||||||||||||||||
| Purchase accounting effect on tax-equivalent margin | 0.09 | % | 0.06 | % | 0.11 | % | 0.11 | % | 0.09 | % | 0.09 | % | 0.14 | % | ||||||||||||||||||||||||||||||||||||||||||||
| * Average loans and leases include portfolio loans and leases, and loans held for sale. Non-accrual loans are also included in the average loan and leases balances. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Bryn Mawr Bank Corporation | ||||||||||||||||||||||||||||
| Appendix – Non-GAAP to GAAP Reconciliations and Calculation of Non-GAAP Performance Measures (unaudited) | ||||||||||||||||||||||||||||
| (dollars in thousands, except per share data) | ||||||||||||||||||||||||||||
| Statement on Non-GAAP Measures: The Corporation believes the presentation of the following non-GAAP financial measures provides useful supplemental information that is essential to an investor’s proper understanding of the results of operations and financial condition of the Corporation. Management uses non-GAAP financial measures in its analysis of the Corporation’s performance. These non-GAAP measures should not be viewed as substitutes for the financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. | ||||||||||||||||||||||||||||
| As of or For the Three Months Ended | As of or For the Nine Months Ended | |||||||||||||||||||||||||||
| September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | September 30, 2017 | September 30, 2016 | ||||||||||||||||||||||
| Reconciliation of Net Income to Net Income (core): | ||||||||||||||||||||||||||||
| Net income (a GAAP measure) | $ | 10,739 | $ | 9,433 | $ | 9,044 | $ | 9,408 | $ | 9,374 | $ | 29,216 | $ | 26,628 | ||||||||||||||
| Less: Tax-effected non-core noninterest income: | ||||||||||||||||||||||||||||
| Loss (gain) on sale of investment securities available for sale | (47 | ) | – | (1 | ) | (6 | ) | 18 | (47 | ) | 56 | |||||||||||||||||
| Add: Tax-effected non-core noninterest expense items: | ||||||||||||||||||||||||||||
| Loss on pension termination | – | – | – | – | – | – | – | |||||||||||||||||||||
| Severance expense (Salaries and wages) | – | – | – | – | – | – | – | |||||||||||||||||||||
| Branch lease termination expense | – | – | – | – | – | – | – | |||||||||||||||||||||
| Debt and swap prepayment penalty (Other operating expenses) | – | – | – | – | – | – | – | |||||||||||||||||||||
| Impairment of intangible assets | – | – | – | – | – | – | – | |||||||||||||||||||||
| Due diligence, merger-related and merger integration expenses | 553 | 803 | 332 | – | – | 1,688 | – | |||||||||||||||||||||
| Net income (core) (a non-GAAP measure) | $ | 11,245 | $ | 10,236 | $ | 9,375 | $ | 9,402 | $ | 9,392 | $ | 30,857 | $ | 26,684 | ||||||||||||||
| Calculation of Basic and Diluted Earnings per Common Share (core): | ||||||||||||||||||||||||||||
| Weighted average common shares outstanding | 17,023,046 | 16,984,563 | 16,954,132 | 16,916,705 | 16,860,727 | 16,987,499 | 16,840,457 | |||||||||||||||||||||
| Dilutive common shares | 210,502 | 248,204 | 228,557 | 247,970 | 211,631 | 234,552 | 153,998 | |||||||||||||||||||||
| Weighted average diluted shares | 17,233,548 | 17,232,767 | 17,182,689 | 17,164,675 | 17,072,358 | 17,222,051 | 16,994,455 | |||||||||||||||||||||
| Basic earnings per common share (core) (a non-GAAP measure) | $ | 0.66 | $ | 0.60 | $ | 0.55 | $ | 0.56 | $ | 0.56 | $ | 1.82 | $ | 1.58 | ||||||||||||||
| Diluted earnings per common share (core) (a non-GAAP measure) | $ | 0.65 | $ | 0.59 | $ | 0.55 | $ | 0.55 | $ | 0.55 | $ | 1.79 | $ | 1.57 | ||||||||||||||
| Calculation of Return on Average Tangible Equity: | ||||||||||||||||||||||||||||
| Net income (loss) | $ | 10,739 | $ | 9,433 | $ | 9,044 | $ | 9,408 | $ | 9,374 | $ | 29,216 | $ | 26,628 | ||||||||||||||
| Add: Tax-effected amortization and impairment of intangible assets | 440 | 447 | 450 | 540 | 577 | 1,337 | 1,734 | |||||||||||||||||||||
| Net tangible income (numerator) | $ | 11,179 | $ | 9,880 | $ | 9,494 | $ | 9,948 | $ | 9,951 | $ | 30,553 | $ | 28,362 | ||||||||||||||
| Average shareholders’ equity | $ | 397,357 | $ | 389,716 | $ | 382,214 | $ | 378,043 | $ | 372,954 | $ | 389,818 | $ | 366,669 | ||||||||||||||
| Less: Average goodwill and intangible assets | (128,917 | ) | (126,537 | ) | (124,884 | ) | (125,614 | ) | (126,505 | ) | (126,794 | ) | (127,398 | ) | ||||||||||||||
| Net average tangible equity (denominator) | $ | 268,440 | $ | 263,179 | $ | 257,330 | $ | 252,429 | $ | 246,449 | $ | 263,024 | $ | 239,271 | ||||||||||||||
| Return on tangible equity (a non-GAAP measure) | 16.52 | % | 15.06 | % | 14.96 | % | 15.68 | % | 16.06 | % | 15.53 | % | 15.83 | % | ||||||||||||||
| Calculation of Tangible Equity Ratio: | ||||||||||||||||||||||||||||
| Total shareholders’ equity | $ | 401,892 | $ | 394,977 | $ | 388,095 | $ | 381,127 | $ | 378,459 | ||||||||||||||||||
| Less: Goodwill and intangible assets | (128,534 | ) | (129,211 | ) | (124,629 | ) | (125,170 | ) | (126,000 | ) | ||||||||||||||||||
| Net tangible equity (numerator) | $ | 273,358 | $ | 265,766 | $ | 263,466 | $ | 255,957 | $ | 252,459 | ||||||||||||||||||
| Total assets | $ | 3,476,821 | $ | 3,438,219 | $ | 3,292,617 | $ | 3,421,530 | $ | 3,174,080 | ||||||||||||||||||
| Less: Goodwill and intangible assets | (128,534 | ) | (129,211 | ) | (124,629 | ) | (125,170 | ) | (126,000 | ) | ||||||||||||||||||
| Tangible assets (denominator) | $ | 3,348,287 | $ | 3,309,008 | $ | 3,167,988 | $ | 3,296,360 | $ | 3,048,080 | ||||||||||||||||||
| Tangible equity ratio | 8.16 | % | 8.03 | % | 8.32 | % | 7.76 | % | 8.28 | % | ||||||||||||||||||
| Calculation of Efficiency Ratio: | ||||||||||||||||||||||||||||
| Noninterest expense | $ | 28,184 | $ | 28,495 | $ | 26,660 | $ | 25,087 | $ | 25,371 | $ | 83,339 | $ | 76,787 | ||||||||||||||
| Less: certain noninterest expense items*: | ||||||||||||||||||||||||||||
| Loss on pension termination | – | – | – | – | – | – | – | |||||||||||||||||||||
| Severance expense (Salaries and wages) | – | – | – | – | – | – | – | |||||||||||||||||||||
| Branch lease termination expense | – | – | – | – | – | – | – | |||||||||||||||||||||
| Debt and swap prepayment penalty (Other operating expenses) | – | – | – | – | – | – | – | |||||||||||||||||||||
| Amortization of intangibles | (677 | ) | (687 | ) | (693 | ) | (830 | ) | (888 | ) | (2,057 | ) | (2,668 | ) | ||||||||||||||
| Impairment of intangible assets | – | – | – | – | – | – | – | |||||||||||||||||||||
| Due diligence, merger-related and merger integration expenses | (850 | ) | (1,236 | ) | (511 | ) | – | – | (2,597 | ) | – | |||||||||||||||||
| Noninterest expense (adjusted) (numerator) | $ | 26,657 | $ | 26,572 | $ | 25,456 | $ | 24,257 | $ | 24,483 | $ | 78,685 | $ | 74,119 | ||||||||||||||
| Noninterest income | $ | 15,584 | $ | 14,785 | $ | 13,227 | $ | 13,248 | $ | 13,786 | $ | 43,596 | $ | 40,920 | ||||||||||||||
| Less: non-core noninterest income items: | ||||||||||||||||||||||||||||
| Loss (gain) on sale of investment securities available for sale | (72 | ) | – | (2 | ) | (9 | ) | 28 | (73 | ) | 86 | |||||||||||||||||
| Noninterest income (core) | $ | 15,512 | $ | 14,785 | $ | 13,225 | $ | 13,239 | $ | 13,814 | $ | 43,523 | $ | 41,006 | ||||||||||||||
| Net interest income | 29,438 | 27,965 | 27,403 | 26,990 | 26,717 | 84,806 | 79,246 | |||||||||||||||||||||
| Noninterest income (core) and net interest income (denominator) | $ | 44,950 | $ | 42,750 | $ | 40,628 | $ | 40,229 | $ | 40,531 | $ | 128,329 | $ | 120,252 | ||||||||||||||
| Efficiency ratio | 59.30 | % | 62.16 | % | 62.66 | % | 60.30 | % | 60.41 | % | 61.32 | % | 61.64 | % | ||||||||||||||
| * In calculating the Corporation’s efficiency ratio, which is used by Management to identify the cost of generating each dollar of core revenue, certain non-core income and expense items as well as the amortization of intangible assets, are excluded. | ||||||||||||||||||||||||||||
| Supplemental Loan and Allowance Information Used to Calculate Non-GAAP Measures | ||||||||||||||||||||||||||||
| Total Allowance | $ | 17,004 | $ | 16,399 | $ | 17,107 | $ | 17,486 | $ | 17,744 | ||||||||||||||||||
| Less: Allowance on acquired loans | 47 | 25 | 38 | 28 | 28 | |||||||||||||||||||||||
| Allowance on originated loans and leases | $ | 16,957 | $ | 16,374 | $ | 17,069 | $ | 17,458 | $ | 17,716 | ||||||||||||||||||
| Total Allowance | $ | 17,004 | $ | 16,399 | $ | 17,107 | $ | 17,486 | $ | 17,744 | ||||||||||||||||||
| Loan mark on acquired loans | 10,223 | 11,084 | 11,544 | 12,286 | 13,391 | |||||||||||||||||||||||
| Total Allowance + Loan mark | $ | 27,227 | $ | 27,483 | $ | 28,651 | $ | 29,772 | $ | 31,135 | ||||||||||||||||||
| Total Portfolio loans and leases | $ | 2,677,345 | $ | 2,666,651 | $ | 2,555,589 | $ | 2,535,425 | $ | 2,493,357 | ||||||||||||||||||
| Less: Originated loans and leases | 2,433,054 | 2,409,964 | 2,286,814 | 2,240,987 | 2,176,549 | |||||||||||||||||||||||
| Net acquired loans | $ | 244,291 | $ | 256,687 | $ | 268,775 | $ | 294,438 | $ | 316,808 | ||||||||||||||||||
| Add: Loan mark on acquired loans | 10,223 | 11,084 | 11,544 | 12,286 | 13,391 | |||||||||||||||||||||||
| Gross acquired loans (excludes loan mark) | $ | 254,514 | $ | 267,771 | $ | 280,319 | $ | 306,724 | $ | 330,199 | ||||||||||||||||||
| Originated loans and leases | 2,433,054 | 2,409,964 | 2,286,814 | 2,240,987 | 2,176,549 | |||||||||||||||||||||||
| Total Gross portfolio loans and leases | $ | 2,687,568 | $ | 2,677,735 | $ | 2,567,133 | $ | 2,547,711 | $ | 2,506,748 | ||||||||||||||||||