Bryn Mawr Bank Corporation Reports Another Record Quarter, Driven by Solid Loan Growth and Stable Interest Margin, Increases Quarterly Dividend to $0.18, Wealth Assets Exceed $7 Billion

BRYN MAWR, Pa., Oct. 24, 2013 (GLOBE NEWSWIRE) -- Bryn Mawr Bank Corporation (Nasdaq:BMTC), (the "Corporation"), parent of The Bryn Mawr Trust Company (the "Bank"), today reported net income of $6.4 million and diluted earnings per share of $0.47 for the three months ended September 30, 2013, as compared to net income of $5.4 million and diluted earnings per share of $0.41 for the same period in 2012. Net income for the three months ended September 30, 2013 included pre-tax due diligence and merger-related expenses of $328 thousand as compared to $316 thousand for the same period in 2012.

Significant factors contributing to the results for the three months ended September 30, 2013, as compared to the same period in 2012, included increases in net interest income and wealth management revenues, which were partially offset by decreases in gains on sale of residential mortgage loans and investment securities available for sale.

For the nine months ended September 30, 2013, net income of $18.0 million was a $2.2 million increase from the $15.8 million recorded for the same period in 2012. Diluted earnings per share for the nine months ended September 30, 2013 increased $0.13, to $1.33, from $1.20 for the same period last year.

Ted Peters, Chairman and Chief Executive Officer, commented, "We are pleased with the Corporation's quarterly and year-to-date financial performance." Mr. Peters continued, "We anticipate that continued strong loan growth in the fourth quarter, along with consistent revenue from our Wealth Management Division, will produce a strong finish to 2013."

On October 24, 2013, the Board of Directors of the Corporation declared a quarterly dividend of $0.18 per share, an increase of $0.01, or 5.9%, from the previous quarter's dividend. The dividend is payable December 1, 2013 to shareholders of record as of November 6, 2013.

"We are very proud of our record for consistently paying dividends to our shareholders. The increase in our dividend is a reflection of the confidence which the Board has in the future growth and profitability of the Corporation," said Mr. Peters.

SIGNIFICANT ITEMS OF NOTE

Results of Operations – 3rd Quarter 2013 Compared to the 3rd Quarter 2012

The overall results for the three months ended September 30, 2013, as compared to the same period in 2012, were affected by the November 2012 purchase of deposits, loans and a branch location from First Bank of Delaware ("FBD").

  • Net income of $6.4 million for the three months ended September 30, 2013 increased $976 thousand, or 18.0%, from $5.4 million for the same period in 2012.
  • Net interest income for the three months ended September 30, 2013 was $18.5 million, an increase of $2.6 million, or 16.2%, from $15.9 million for the same period in 2012. The increase in net interest income between the periods was largely the result of a $160.6 million, or 12.3%, increase in average portfolio loans. This increase was partially related to loans acquired from FBD, which totaled $62.9 million as of September 30, 2013. In addition, the prepayment of $22.5 million of subordinated debt during the third and fourth quarters of 2012 and $20.0 million of Federal Home Loan Bank ("FHLB") borrowings in the first quarter of 2013, along with the 13 basis point decline in rate paid on deposits, contributed significantly to the $843 thousand decrease in interest expense for the three months ended September 30, 2013, as compared to the same period in 2012.
  • Non-interest income for the three months ended September 30, 2013 decreased $861 thousand as compared to the same period in 2012. Contributing factors to this decrease include a $1.3 million decrease in the gain on sale of residential mortgage loans and a $416 thousand decline in gain on sale of investment securities available for sale. During the three months ended September 30, 2013, the volume of residential mortgage loans sold to the secondary market dropped significantly, with residential mortgages sold totaling $17.8 million, as compared to $55.0 million during the same period in 2012. While new originations of residential mortgage loans for the 3rd quarter of 2013 totaled $40.4 million, $16.4 million of the originations were jumbo residential mortgage loans which were retained in the portfolio. Partially offsetting these decreases was a $642 thousand increase in revenue from wealth management services for the three months ended September 30, 2013 as compared to the same period in 2012. Wealth Management Division assets under management, administration, supervision and brokerage as of September 30, 2013 were $7.1 billion, an increase of $600 million, or 9.3%, from September 30, 2012. Organic growth due to the success of the division's strategic initiatives was supplemented by market appreciation and other new business between the dates.
  • Non-interest expense for the three months ended September 30, 2013 increased $434 thousand, to $19.3 million, as compared to $18.9 million for the same period in 2012. Contributing to this increase were a $302 thousand increase in salaries and benefits, a $158 thousand increase in occupancy costs and a $233 thousand increase in other operating expenses between the periods. Salaries and benefits increased primarily as a result of the addition of the branch and lending staff from FBD and the new personnel for our newly-opened full-service branch in Bala Cynwyd, Pennsylvania, which opened at the end of 2012, as well as annual salary increases. Partially offsetting these new personnel costs was the decrease in incentives paid to the residential mortgage originators and other factors. The increased occupancy costs were also related to the additions of FBD and our new branch Bala Cynwyd branch. Decreases in impairment and amortization of mortgage servicing rights totaling $128 thousand, along with the absence of the $188 thousand of early extinguishment of debt expenses, between the periods, partially offset the salary, benefits and occupancy cost increases.
  • The tax-equivalent net interest margin of 4.05% for the three months ended September 30, 2013 was a 27 basis point increase from the 3.78% tax-equivalent net interest margin for the same period in 2012. The increase was the result of a $139.6 million increase in average interest-earning assets, partially offset by a $55.2 million increase in average interest-bearing liabilities between the periods. The tax-equivalent yield earned on average interest-earning assets increased by 5 basis points between periods, while the tax-equivalent rate paid on average interest-bearing liabilities dropped by 28 basis points. The tax-equivalent yield earned on investment securities available for sale increased 14 basis points between periods as rising interest rates caused a slow-down in prepayments of mortgage-related securities. This yield increase was partially offset by a 13 basis point decline in the tax-equivalent yield on portfolio loans. The significant reduction in rate paid on interest-bearing liabilities was related to the prepayment of $22.5 million of subordinated debt during the third and fourth quarters of 2012, as well as the prepayment of $20.0 million of Federal Home Loan Bank ("FHLB") advances during the first quarter of 2013. Supplementing these reductions in borrowing costs was a 13 basis point drop in rates paid on interest-bearing deposits, which experienced a $78.0 million increase in average balances for the three months ended September 30, 2013, as compared to the same period in 2012.
  • Nonperforming loans and leases of $10.6 million as of September 30, 2013 were 0.71% of total portfolio loans and leases, as compared $14.8 million, or 1.06% of total portfolio loans and leases as of December 31, 2012. This $4.2 million decrease in nonperforming loans was concentrated in the construction, commercial and industrial and home equity segments of the portfolio and was partially the result of $1.8 million of charge-offs of impaired loans, as well as additions of $566 thousand to other real estate owned related to three residential properties. For the three months ended September 30, 2013, the Corporation recorded net loan and lease charge-offs of $376 thousand, as compared to $502 thousand for the same period in 2012. The provision for loan and lease losses for the three month period ended September 30, 2013 was $959 thousand, as compared to $1.0 million for the same period in 2012.

Results of Operations – 3rd Quarter 2013 Compared to the 2nd Quarter 2013

  • Net income of $6.4 million for the three months ended September 30, 2013 increased $149 thousand, or 2.4%, from $6.3 million for the three months ended June 30, 2013.
  • Net interest income for the three months ended September 30, 2013 was $18.5 million, an increase of $610 thousand, or 3.4%, from $17.9 million for the three months ended June 30, 2013. The increase in net interest income between the periods was largely the result of a $36.3 million, or 2.5%, increase in average portfolio loans, partially offset by a 5 basis point decrease in the tax-equivalent yield earned on loans and leases. In addition, the tax-equivalent yield earned on investment securities available for sale increased from 1.22% for the 2nd quarter of 2013 to 1.40% for the 3rd quarter of 2013 as rising interest rates have slowed the rate of prepayments of mortgage-related securities. Also contributing to the increase in net interest income between the 2nd and 3rd quarters of 2013 was a $5.2 million decrease in average interest- bearing liabilities between periods.
  • Non-interest income for the three months ended September 30, 2013 decreased $1.6 million as compared to the three months ended June 30, 2013. Factors contributing to this decrease included a $914 thousand decrease in the gain on sale of residential mortgage loans and a $459 thousand decline in revenue from wealth management services. During the three months ended September 30, 2013, the volume of residential mortgage loans sold dropped significantly, from $46.6 million for the three months ended June 30, 2013, to $17.8 million for the quarter ended September 30, 2013. Rising interest rates played a significant role in this decline, as fewer borrowers refinanced mortgage loans. In addition, $16.4 million of the $40.4 million of residential mortgage loans originated in the 3rd quarter of 2013 were jumbo mortgage loans which were retained in the portfolio. The 5.1% decrease in revenue from wealth management services was primarily related to the tax-related revenue recorded in the 2nd quarter of 2013, which did not recur in the 3rd quarter of 2013. Wealth Management Division assets under management, administration, supervision and brokerage as of September 30, 2013 grew to $7.1 billion, an increase of $228 million, or 3.3%, from June 30, 2013.
  • Non-interest expense for the three months ended September 30, 2013 decreased $1.2 million, to $19.3 million, as compared to $20.5 million for the three months ended June 30, 2013. The decrease between the periods was related to decreases of $316 thousand, $301 thousand and $360 thousand in employee benefits, furniture, fixtures and equipment expense, and due diligence and merger-related expenses, respectively. The reduction in employee benefits expense was related to, among other things, the annual renewal of the Corporation's medical benefits plan, in which more employees chose to enroll in the lower-cost, high-deductible health plan. The decrease in furniture, fixtures and equipment expense returned the category to a more stable level, as some of the higher computer software and hardware costs recorded in the 2nd quarter of 2013 did not recur in the 3rd quarter of 2013. The decrease in due diligence and merger-related expenses reflected the wind-down of certain merger-related conversion costs associated with the acquisition of Davidson Trust Company as well as the termination, on August 8, 2013, of the merger with MidCoast Community Bancorp.
  • The tax-equivalent net interest margin of 4.05% for the three months ended September 30, 2013 was a 7 basis point increase from the 3.98% tax-equivalent net interest margin for the three months ended June 30, 2013. The increase between periods was primarily the result of a $36.3 million increase in average loans and leases, partially offset by a $24.4 million decrease in average interest-earning deposits with other banks. The resulting 6 basis point increase in tax-equivalent yield earned on interest-earning assets occurred because of the disparity between the yield earned on interest-earning deposits with other banks and that earned on loans and leases.
  • Nonperforming loans and leases of $10.6 million as of September 30, 2013 were 0.71% of total portfolio loans and leases, as compared $10.5 million, or 0.73% of total portfolio loans and leases as of June 30, 2013. For the three months ended September 30, 2013, the Corporation recorded net loan and lease charge-offs of $376 thousand, a significant improvement from the $1.0 million net loan and lease charge-offs recorded in the 2nd quarter of 2013. The provision for loan and lease losses decreased slightly, to $959 thousand, for the three months ended September 30, 2013, as compared to $1.0 million in the previous quarter. Although the level of net loan and lease charge-offs during the quarter declined substantially, the $69.1 million growth in the loan portfolio necessitated this level of provision for loan and lease losses.

Financial Condition – September 30, 2013 Compared to December 31, 2012

  • Deposits of $1.55 billion, as of September 30, 2013, decreased $84.0 million from December 31, 2012. The 5.1% decrease was largely related to a $73.5 million decrease in time deposits between the dates. The Corporation has continued its planned run-off of its higher-rate certificates of deposit.
  • The allowance for loan and lease losses as of September 30, 2013 was $15.0 million, or 1.00% of portfolio loans as compared to $14.4 million, or 1.03% of portfolio loans and leases, as of December 31, 2012.
  • The capital ratios for the Bank and the Corporation, as shown in the table below, indicate levels well above the regulatory minimum to be considered "well capitalized." Additionally, the tangible equity ratios for both the Bank and the Corporation have improved from their December 31, 2012 levels of 7.72% and 7.60%, to 8.32% and 8.30%, respectively, at September 30, 2013. These improvements were primarily the result of increases in retained earnings and issuance of common stock, partially offset by nominal growth in total assets.
  • Total assets as of September 30, 2013 totaled $2.06 billion, an increase of $23.1 million from December 31, 2012.
  • Total portfolio loans and leases of $1.50 billion as of September 30, 2013 increased by $101.6 million from December 31, 2012, with commercial mortgages, commercial and industrial loans, and construction loans comprising the majority of the increase.

EARNINGS CONFERENCE CALL

The Corporation will hold an earnings conference call at 8:30 am ET on Friday, October 25, 2013. Interested parties may participate by calling 1-888-317-6016. A taped replay of the conference call will be available one hour after the conclusion of the call and will remain available through 9:00 a.m. ET on Monday, November 11, 2013. The number to call for the taped replay is 1-877-344-7529 and the conference number is 10030506.

The conference call will be simultaneously broadcast live over the Internet through a webcast on the investor relations portion of the Bryn Mawr Bank Corporation's website. To access the call, please visit the website at http://services.choruscall.com/links/bmtc131025.html. An online archive of the webcast will be available within one hour of the conclusion of the call. The Corporation has also recently expanded its Investor Relations website to include added resources and information for shareholders and interested investors. Interested parties are encouraged to utilize the expanded resources of the site for more information on Bryn Mawr Bank Corporation.

FORWARD-LOOKING STATEMENTS AND SAFE HARBOR

This press release contains statements which, to the extent that they are not recitations of historical fact may constitute forward-looking statements for purposes of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. Such forward-looking statements may include financial and other projections as well as statements regarding the Corporation's future plans, objectives, performance, revenues, growth, profits, operating expenses or the Corporation's underlying assumptions. The words "may," "would," "should," "could," "will," "likely," "possibly," "expect," "anticipate," "intend," "estimate," "target," "potentially," "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 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 well as any changes in risk factors that we may identify in our quarterly or other reports filed with the SEC.

Bryn Mawr Bank Corporation
Consolidated Statements of Income - (unaudited)
(dollars in thousands, except per share data)
For The Three Months Ended
September 30, June 30, March 31, December 31, September 30,
2013 2013 2013 2012 2012
Interest income $ 19,820 $ 19,217 $ 18,855 $ 18,682 $ 18,081
Interest expense 1,287 1,294 1,446 1,786 2,130
Net interest income 18,533 17,923 17,409 16,896 15,951
Provision for loan and lease losses 959 1,000 804 1,000 1,000
Net interest income after provision for loan and lease losses 17,574 16,923 16,605 15,896 14,951
Fees for wealth management services 8,635 9,094 8,349 8,365 7,993
Loan servicing and other fees 481 448 451 473 432
Service charges on deposits 627 596 584 654 634
Net gain on sale of residential mortgage loans 578 1,492 1,518 2,424 1,837
Net gain on sale of invertment securities available for sale -- -- 2 283 416
Net loss on sale of other real estate owned (1) (141) (52) -- (45)
Bank owned life insurance income 72 85 113 98 108
Other operating income 995 1,369 825 873 873
Non-interest income 11,387 12,943 11,790 13,170 12,248
Salaries and wages 9,012 9,086 8,810 8,848 8,703
Employee benefits 1,896 2,212 2,325 2,041 1,903
Net gain on curtailment of nonqualified pension plan -- (120) (570) -- --
Occupancy and bank premises 1,646 1,728 1,750 1,616 1,488
Furniture fixtures and equipment 920 1,221 819 961 935
Advertising 303 380 412 363 267
Net impairment (recovery) of mortgage servicing rights 33 (91) 71 81 105
Amortization of mortgage servicing rights 187 218 212 248 243
Amortization of intangible assets 657 660 661 673 669
FDIC insurance 271 275 258 255 262
Due diligence and merger-related expenses 328 688 714 1,190 316
Professional fees 636 664 575 1,031 609
Early extinguishment of debt - costs and premiums -- -- 347 338 188
Other operating expenses 3,434 3,603 3,851 3,444 3,201
Non-interest expense 19,323 20,524 20,235 21,089 18,889
Income before income taxes 9,638 9,342 8,160 7,977 8,310
Income tax expense 3,237 3,090 2,840 2,673 2,885
Net income $ 6,401 $ 6,252 $ 5,320 $ 5,304 $ 5,425
Per share data:
Weighted average shares outstanding 13,336,799 13,280,624 13,205,538 13,157,295 13,149,050
Dilutive common shares 275,343 227,150 230,413 205,545 146,377
Adjusted weighted average dilutive shares 13,612,142 13,507,774 13,435,951 13,362,840 13,295,427
Basic earnings per common share $0.48 $0.47 $0.40 $0.40 $0.41
Diluted earnings per common share $0.47 $0.46 $0.40 $0.40 $0.41
Dividend declared per share $0.17 $0.17 $0.17 $0.16 $0.16
Effective tax rate 33.6% 33.1% 34.8% 33.5% 34.7%
Bryn Mawr Bank Corporation
Consolidated Statements of Income - (unaudited)
(dollars in thousands, except per share data)
For The Nine Months Ended September 30,
2013 2012
Interest income $ 57,892 $ 54,641
Interest expense 4,027 6,802
Net interest income 53,865 47,839
Provision for loan and lease losses 2,763 3,003
Net interest income after provision for loan and lease losses 51,102 44,836
Fees for wealth management services 26,078 21,433
Loan servicing and other fees 1,380 1,303
Service charges on deposits 1,807 1,823
Net gain on sale of residential mortgage loans 3,588 4,311
Net gain on sale of investment securities available for sale 2 1,132
Bank owned life insurance income 270 330
Net loss on sale of other real estate owned (194) (86)
Other operating income 3,189 2,970
Non-interest income 36,120 33,216
Salaries and wages 26,908 24,283
Employee benefits 6,433 6,086
Net gain on curtailment of nonqualified pension plan (690) --
Occupancy and bank premises 5,124 4,258
Furniture fixtures and equipment 2,960 2,766
Advertising 1,095 946
Net recovery of mortgage servicing rights 13 82
Amortization of mortgage servicing rights 617 718
Amortization of intangible assets 1,978 1,738
FDIC insurance 804 715
Due diligence and merger-related expenses 1,730 1,439
Professional fees 1,875 1,837
Early extinguishment of debt - costs and premiums 347 --
Other operating expenses 10,888 8,944
Non-interest expense 60,082 53,812
Income before income taxes 27,140 24,240
Income tax expense 9,167 8,397
Net income $ 17,973 $ 15,843
Per share data:
Weighted average shares outstanding 13,274,801 13,067,551
Dilutive common shares 244,302 133,799
Adjusted weighted average shares 13,519,103 13,201,350
Basic earnings per common share $1.35 $1.21
Diluted earnings per common share $1.33 $1.20
Dividend declared per share $0.51 $0.48
Effective tax rate 33.8% 34.6%
Bryn Mawr Bank Corporation
Consolidated Balance Sheets - (unaudited)
(dollars in thousands)
September 30, June 30, March 31, December 31, September 30,
2013 2013 2013 2012 2012
Assets
Interest-bearing deposits with banks $ 71,203 $ 95,903 $ 136,534 $ 159,483 $ 23,559
Investment securities - available for sale 319,917 322,961 327,799 316,614 316,644
Investment securities - trading 2,357 2,180 2,168 1,447 1,399
Loans held for sale 1,284 2,207 3,233 3,412 3,420
Portfolio loans:
Consumer 17,572 18,404 18,725 17,666 17,342
Commercial & industrial 303,259 296,073 293,171 291,620 274,351
Commercial mortgages 622,771 587,261 563,431 546,358 472,354
Construction 39,055 28,718 26,135 26,908 22,161
Residential mortgages 291,645 280,687 284,819 288,212 301,054
Home equity lines & loans 187,634 183,006 183,984 194,861 195,315
Leases 38,079 36,770 34,974 32,831 31,136
Total portfolio loans and leases 1,500,015 1,430,919 1,405,239 1,398,456 1,313,713
Earning assets 1,894,776 1,854,170 1,874,973 1,879,412 1,658,735
Cash and due from banks 24,958 14,208 12,013 16,203 13,526
Allowance for loan and lease losses (15,027) (14,444) (14,447) (14,424) (13,638)
Premises and equipment 31,436 30,947 31,072 31,170 29,238
Accrued interest receivable 5,703 6,097 6,168 5,955 5,963
Mortgage servicing rights 4,744 4,790 4,593 4,491 4,257
Goodwill 32,843 32,843 32,897 32,897 29,588
Other intangible assets 20,020 20,677 21,337 21,998 22,351
Bank owned life insurance 20,132 20,060 19,975 19,862 19,765
FHLB stock 12,590 13,028 10,663 10,761 10,717
Deferred income taxes 11,955 11,788 10,854 12,303 11,478
Other investments 4,337 4,378 4,347 4,346 4,438
Other assets 10,506 10,980 15,718 10,911 18,111
Total assets $ 2,058,973 $ 2,009,522 $ 2,030,163 $ 2,035,885 $ 1,814,529
Liabilities and shareholders' equity
Interest-bearing deposits:
Interest-bearing checking $ 244,826 $ 262,316 $ 263,820 $ 270,279 $ 226,206
Money market 548,011 551,750 588,478 559,470 493,829
Savings 137,431 136,307 135,124 129,091 132,402
Wholesale non-maturity deposits 57,195 30,315 32,879 45,162 37,458
Wholesale time deposits 23,127 12,139 11,325 12,421 9,942
Time deposits 145,119 161,146 171,575 218,586 171,498
Total interest-bearing deposits 1,155,709 1,153,973 1,203,201 1,235,009 1,071,335
Non-interest-bearing deposits 394,947 395,742 407,453 399,673 327,214
Total deposits 1,550,656 1,549,715 1,610,654 1,634,682 1,398,549
Long-term FHLB advances and other borrowings 191,645 152,642 148,636 161,315 155,416
Short-term borrowings 75,588 71,768 38,362 9,402 19,029
Subordinated debentures -- -- -- -- 15,000
Other liabilities 23,323 22,929 22,343 26,921 25,280
Shareholders' equity 217,761 212,468 210,168 203,565 201,255
Total liabilities and shareholders' equity $ 2,058,973 $ 2,009,522 $ 2,030,163 $ 2,035,885 $ 1,814,529
Bryn Mawr Bank Corporation
Consolidated Quarterly Average Balance Sheets - (unaudited)
(dollars in thousands)
For The Three Months Ended
September 30, June 30, March 31, December 31, September 30,
2013 2013 2013 2012 2012
Assets
Interest-bearing deposits with banks $ 35,589 $ 59,981 $ 117,372 $ 91,234 $ 53,767
Investment securities - available for sale 324,418 325,729 323,247 311,372 328,051
Investment securities - trading 2,182 2,168 1,695 1,400 1,343
Loans held for sale 867 2,233 2,645 4,047 2,972
Portfolio loans and leases 1,463,492 1,425,836 1,401,038 1,341,826 1,300,811
Earning assets 1,826,548 1,815,947 1,845,997 1,749,879 1,686,944
Cash and due from banks 12,497 12,876 13,287 14,817 12,922
Allowance for loan and lease losses (14,653) (14,625) (14,693) (14,063) (13,337)
Premises and equipment 31,216 31,254 31,415 30,189 29,077
Goodwill 32,843 32,896 32,897 29,642 29,751
Other intangible assets 20,400 21,055 21,725 22,084 22,580
Bank owned life insurance 20,086 20,005 19,905 19,800 19,695
FHLB stock 12,809 10,430 10,544 10,572 10,717
Deferred income taxes 11,946 10,997 12,183 11,577 11,179
Other assets 21,904 25,296 21,294 23,800 23,275
Total assets $ 1,975,596 $ 1,966,131 $ 1,994,554 $ 1,898,297 $ 1,832,803
Liabilities and shareholders' equity
Interest-bearing deposits:
Interest-bearing checking $ 249,982 $ 263,842 $ 266,900 $ 241,730 $ 229,853
Money market 559,911 571,327 576,422 516,174 486,798
Savings 135,070 134,485 132,142 132,725 133,315
Wholesale non-maturity deposits 47,804 31,124 38,683 38,932 35,956
Wholesale time deposits 10,911 11,610 11,495 10,689 13,809
Time deposits 152,788 164,247 190,937 190,332 178,711
Total interest-bearing deposits 1,156,466 1,176,635 1,216,579 1,130,582 1,078,442
Non-interest bearing deposits 402,292 391,387 386,881 359,008 330,179
Total deposits 1,558,758 1,568,022 1,603,460 1,489,590 1,408,621
Long-term FHLB advances and other borrowings 163,818 150,578 148,699 159,559 167,251
Short-term borrowings 14,995 13,248 11,978 13,243 13,273
Subordinated debentures -- -- -- 7,283 21,114
Other liabilities 24,904 23,617 26,123 27,175 25,354
Shareholders' equity 213,121 210,666 204,294 201,447 197,190
Total liabilities and shareholders' equity $ 1,975,596 $ 1,966,131 $ 1,994,554 $ 1,898,297 $ 1,832,803
Bryn Mawr Bank Corporation
Consolidated Average Balance Sheets - (unaudited)
(dollars in thousands)
For The Nine Months Ended September 30,
2013 2012
Assets
Interest bearing deposits with banks $ 70,681 $ 50,033
Investment securities - available for sale 324,469 317,932
Investment securities - trading 2,017 1,442
Loans held for sale 1,909 3,435
Portfolio loans and leases 1,430,351 1,295,700
Earning assets 1,829,427 1,668,542
Cash and due from banks 12,884 12,242
Allowance for loan and lease losses (14,657) (13,270)
Premises and equipment 31,294 29,013
Goodwill 32,878 26,890
Intangible assets 21,055 20,611
Bank owned life insurance 19,999 19,588
FHLB stock 11,760 10,824
Deferred income taxes 11,708 12,339
Other assets 22,344 24,298
Total assets $ 1,978,692 $ 1,811,077
Liabilities and shareholders' equity
Interest-bearing deposits:
Interest-bearing checking $ 260,180 $ 231,262
Money market 569,159 443,654
Savings 133,910 132,958
Wholesale non-maturity deposits 39,238 49,462
Wholesale time deposits 11,337 19,460
Time deposits 169,184 197,607
Total interest-bearing deposits 1,183,008 1,074,403
Non-interest-bearing deposits 393,576 319,767
Total deposits 1,576,584 1,394,170
Long-term FHLB advances and other borrowings 155,412 165,717
Short-term borrowings 12,429 13,244
Subordinated debentures -- 22,035
Other liabilities 24,874 24,508
Shareholders' equity 209,393 191,403
Total liabilities and shareholders' equity $ 1,978,692 $ 1,811,077
Bryn Mawr Bank Corporation
Consolidated Selected Financial Data - (unaudited)
(dollars in thousands, except per share data)
For The Three Months Ended or As Of
September 30, June 30, March 31, December 31, September 30,
2013 2013 2013 2012 2012
Asset Quality Data
Nonaccrual loans and leases $ 10,613 $ 10,489 $ 12,098 $ 14,040 $ 13,846
90 days or more past due loans, still accruing -- -- 728 728 --
Nonperforming loans and leases 10,613 10,489 12,826 14,768 13,846
Other real estate owned 1,253 1,205 545 906 412
Total nonperforming assets $ 11,866 $ 11,694 $ 13,371 $ 15,674 $ 14,258
Troubled debt restructurings included in nonperforming assets $ 2,628 $ 2,869 $ 3,686 $ 3,106 $ 3,740
Troubled debt restructurings in compliance with modified terms 8,947 8,157 7,438 8,008 8,379
Total troubled debt restructurings $ 11,575 $ 11,026 $ 11,124 $ 11,114 $ 12,119
Nonperforming loans and leases / portfolio loans & leases 0.71% 0.73% 0.91% 1.06% 1.05%
Nonperforming assets / total assets 0.58% 0.58% 0.66% 0.77% 0.78%
Net loan charge-offs / average loans (annualized) 0.09% 0.29% 0.23% 0.08% 0.16%
Net lease charge-offs (recoveries) / average leases (annualized) 0.73% 0.11% -0.13% -0.38% -0.23%
Net loan and lease charge-offs / average loans and leases (annualized) 0.10% 0.28% 0.22% 0.07% 0.16%
Delinquency rate* - Performing and nonperforming loans and leases 30 days or more past due 0.68% 0.73% 1.23% 1.02% 1.01%
Performing loans and leases - 30-89 days past due $ 1,227 $ 2,328 $ 4,115 $ 2,053 $ 1,954
Delinquency rate* - Performing loans and leases - 30-89 days past due 0.08% 0.16% 0.29% 0.15% 0.15%
* to total loans and leases
Changes in the allowance for loan and lease losses:
Balance, beginning of period $ 14,444 $ 14,447 $ 14,425 $ 13,638 $ 13,140
Charge-offs (501) (1,164) (830) (450) (618)
Recoveries 125 161 48 237 116
Net charge-offs (376) (1,003) (782) (213) (502)
Provision for loan and lease losses 959 1,000 804 1,000 1,000
Balance, end of period $ 15,027 $ 14,444 $ 14,447 $ 14,425 $ 13,638
Allowance for loan and lease losses / loans and leases 1.00% 1.01% 1.03% 1.03% 1.04%
Allowance for loan and lease losses / nonperforming loans and leases 141.6% 137.7% 112.6% 97.7% 98.5%
Bryn Mawr Bank Corporation
Consolidated Selected Financial Data - (unaudited)
(dollars in thousands, except per share data)
For The Three Months Ended or As Of
September 30, June 30, March 31, December 31, September 30,
2013 2013 2013 2012 2012
Selected ratios (annualized):
Return on average assets 1.29% 1.28% 1.08% 1.11% 1.18%
Return on average shareholders' equity 11.92% 11.90% 10.56% 10.47% 10.93%
Return on average tangible equity (2) 15.89% 16.00% 14.42% 14.09% 14.89%
Tax-equivalent yield on loans and leases 5.08% 5.13% 5.16% 5.24% 5.21%
Tax-equivalent yield on interest-earning assets 4.33% 4.27% 4.16% 4.27% 4.28%
Cost of interest-bearing funds 0.38% 0.39% 0.43% 0.54% 0.66%
Tax-equivalent net interest margin 4.05% 3.98% 3.85% 3.86% 3.78%
Book value per share $ 16.07 $ 15.71 $ 15.57 $ 15.17 $ 15.02
Tangible book value per share $ 12.17 $ 11.75 $ 11.55 $ 11.08 $ 11.14
Shares outstanding at end of period 13,551,438 13,528,078 13,500,413 13,414,552 13,399,635
Selected data:
Mortgage loans originated $ 40,426 $ 55,066 $ 65,105 $ 82,458 $ 64,455
Residential mortgage loans sold - servicing retained $ 17,768 $ 46,209 $ 51,414 $ 71,596 $ 54,992
Residential mortgage loans sold - servicing released -- 347 189 -- --
Total residential mortgage loans sold $ 17,768 $ 46,556 $ 51,603 $ 71,596 $ 54,992
Yield on loans sold 3.25% 3.20% 2.94% 3.39% 3.34%
Residential mortgage loans serviced for others $ 627,058 $ 623,498 $ 603,734 $ 595,317 $ 583,859
Total wealth assets under management, administration, supervision and brokerage (1) $ 7,082,926 $ 6,854,838 $ 6,987,974 $ 6,663,212 $ 6,482,835
(1) Brokerage assets represent assets held at a registered broker dealer under a networking agreement.
(2) Average tangible equity equals average shareholders' equity minus average goodwill and average other intangible assets.
For The Nine Months Ended September 30,
2013 2012
Selected ratios (annualized):
Return on average assets 1.21% 1.17%
Return on average shareholders' equity 11.48% 11.06%
Return on average tangible equity (1) 15.46% 14.71%
Tax-equivalent yield on loans and leases 5.13% 5.29%
Tax-equivalent yield on interest-earning assets 4.25% 4.40%
Cost of interest-bearing liabilities 0.40% 0.71%
Tax-equivalent net interest margin 3.96% 3.85%
Selected data:
Residential mortgage loans originated $ 160,597 $ 171,267
Residential mortgage loans sold - servicing retained $ 115,391 $ 129,756
Residential mortgage loans sold - servicing released 536 3,461
Total residential mortgage loans sold $ 115,927 $ 133,217
(1) Average tangible equity equals average shareholders' equity minus average goodwill and average other intangible assets.
Bryn Mawr Bank Corporation
Consolidated Selected Financial Data - (unaudited)
(dollars in thousands, except per share data)
Investment Portfolio - Available for Sale As of September 30, 2013 As of December 31, 2012
Net Net
Amortized Fair Unrealized Amortized Fair Unrealized
SECURITY DESCRIPTION Cost Value Gain / (Loss) Cost Value Gain / (Loss)
U.S. Treasury securities $ 102 $ 101 $ (1) $ -- $ -- $ --
Obligations of the U.S. Government and agencies 92,128 90,944 (1,184) 73,183 73,872 689
State & political subdivisions 40,273 40,065 (208) 30,243 30,384 141
Mortgage-backed securities 123,161 124,283 1,122 128,537 131,826 3,289
Collateralized mortgage obligations 47,412 47,323 (89) 62,116 62,703 587
Other debt securities 2,400 2,399 (1) 1,900 1,900 --
Bond mutual funds 11,456 11,458 2 11,456 11,527 71
Investment CDs 1,211 1,213 2 2,350 2,364 14
Other investments 1,887 2,131 244 1,962 2,038 76
Total investment portfolio available for sale $ 320,030 $ 319,917 $ (113) $ 311,747 $ 316,614 $ 4,867
Capital Ratios
Regulatory Minimum
To Be September 30, June 30, March 31, December 31, September 30,
Bryn Mawr Trust Company Well Capitalized 2013 2013 2013 2012 2012
Tier I capital to risk weighted assets ("RWA") 6.00% 11.36% 11.58% 11.52% 11.20% 11.99%
Total (Tier II) capital to RWA 10.00% 12.33% 12.55% 12.51% 12.20% 14.09%
Tier I leverage ratio 5.00% 9.22% 9.07% 8.70% 8.84% 9.23%
Tangible equity ratio N/A 8.32% 8.29% 8.11% 7.72% 8.85%
Bryn Mawr Bank Corporation
Tier I capital to RWA 6.00% 11.33% 11.47% 11.33% 11.02% 11.64%
Total (Tier II) capital to RWA 10.00% 12.30% 12.44% 12.32% 12.02% 13.74%
Tier I leverage ratio 5.00% 9.22% 9.00% 8.58% 8.72% 8.98%
Tangible equity ratio N/A 8.30% 8.21% 7.98% 7.60% 8.58%
Bryn Mawr Bank Corporation
Quarterly Average Balances and Tax-Equivalent Interest Income and Expense and Tax-Equivalent Yields - (unaudited)
For The Three Months Ended
September 30, 2013 June 30, 2013 March 31, 2013 December 31, 2012 September 30, 2012
(dollars in thousands) Average
Balance
Interest
Income/
Expense
Average Rates
Earned/Paid
Average
Balance
Interest
Income/
Expense
Average Rates Earned/Paid Average
Balance
Interest
Income/
Expense
Average Rates
Earned/Paid
Average
Balance
Interest
Income/
Expense
Average Rates
Earned/Paid
Average
Balance
Interest
Income/
Expense
Average Rates
Earned/Paid
Assets:
Interest-bearing deposits with other banks $ 35,589 $ 21 0.23% $ 59,981 $ 41 0.27% $ 117,372 $ 69 0.24% $ 91,234 $ 41 0.18% $ 53,767 $ 34 0.25%
Investment securities - available for sale:
Taxable 284,558 988 1.38% 287,287 846 1.18% 289,097 889 1.25% 286,889 897 1.24% 309,570 960 1.23%
Tax-exempt 39,860 159 1.58% 38,442 146 1.52% 34,150 125 1.48% 24,483 102 1.66% 18,481 82 1.77%
Investment securities - available for sale 324,418 1,147 1.40% 325,729 992 1.22% 323,247 1,014 1.27% 311,372 999 1.28% 328,051 1,042 1.26%
Investment securities - trading 2,182 7 1.27% 2,168 13 2.41% 1,695 16 3.83% 1,400 16 4.55% 1,343 5 1.48%
Loans and leases * 1,464,359 18,755 5.08% 1,428,069 18,277 5.13% 1,403,683 17,854 5.16% 1,345,873 17,721 5.24% 1,303,783 17,089 5.21%
Total interest-earning assets 1,826,548 19,930 4.33% 1,815,947 19,323 4.27% 1,845,997 18,953 4.16% 1,749,879 18,777 4.27% 1,686,944 18,170 4.28%
Cash and due from banks 12,497 12,876 13,287 14,817 12,922
Less allowance for loan and lease losses (14,653) (14,625) (14,693) (14,063) (13,337)
Other assets 151,204 151,933 149,963 147,664 146,274
Total assets $ 1,975,596 $ 1,966,131 $ 1,994,554 $ 1,898,297 $ 1,832,803
Liabilities:
Savings, NOW and market rate deposits $ 944,963 $ 419 0.18% $ 969,654 $ 445 0.18% $ 975,464 $ 479 0.20% $ 890,629 $ 557 0.25% $ 849,966 $ 567 0.27%
Wholesale deposits 58,715 55 0.37% 42,734 44 0.41% 50,178 54 0.44% 49,621 58 0.47% 49,765 55 0.44%
Time deposits 152,788 165 0.43% 164,247 205 0.50% 190,937 242 0.51% 190,332 290 0.61% 178,711 316 0.70%
Total interest-bearing deposits 1,156,466 639 0.22% 1,176,635 694 0.24% 1,216,579 775 0.26% 1,130,582 905 0.32% 1,078,442 938 0.35%
Subordinated debentures -- -- --% -- -- --% -- -- --% 7,283 79 4.32% 21,114 271 5.11%
Short-term borrowings 14,995 5 0.13% 13,358 4 0.12% 11,978 4 0.14% 13,243 3 0.09% 13,273 4 0.12%
Long-term FHLB advances and other borrowings 163,818 643 1.56% 150,468 596 1.59% 148,699 667 1.82% 159,559 798 1.99% 167,251 918 2.18%
Total Borrowings 178,813 648 1.44% 163,826 600 1.47% 160,677 671 1.69% 180,085 880 1.94% 201,638 1,193 2.35%
Total interest-bearing liabilities 1,335,279 1,287 0.38% 1,340,461 1,294 0.39% 1,377,256 1,446 0.43% 1,310,667 1,785 0.54% 1,280,080 2,131 0.66%
Noninterest-bearing deposits 402,292 391,387 386,881 359,008 330,179
Other liabilities 24,904 23,617 26,123 27,175 25,100
Total noninterest-bearing liabilities 427,196 415,004 413,004 386,183 355,279
Total liabilities 1,762,475 1,755,465 1,790,260 1,696,850 1,635,359
Shareholders' equity 213,121 210,666 204,294 201,447 197,444
Total liabilities and shareholders' equity $ 1,975,596 $ 1,966,131 $ 1,994,554 $ 1,898,297 $ 1,832,803
Interest income to earning assets 4.33% 4.27% 4.16% 4.27% 4.28%
Net interest spread 3.95% 3.88% 3.73% 3.73% 3.62%
Effect of noninterest-bearing sources 0.10% 0.10% 0.12% 0.13% 0.16%
Tax-equivalent net interest income/ margin on earning assets $ 18,643 4.05% $ 18,029 3.98% $ 17,507 3.85% $ 16,992 3.86% $ 16,039 3.78%
Tax-equivalent adjustment $ 110 0.02% $ 106 0.02% $ 98 0.03% $ 96 0.02% $ 88 0.02%
* 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
Average Balances and Tax-Equivalent Interest Income and Expense and Tax-Equivalent Yields
For The Nine Months Ended September 30,
2013 2012
(dollars in thousands) 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 $ 70,681 131 0.25% $ 50,033 86 0.23%
Investment securities available for sale: --
Taxable 286,964 2,721 1.27% 303,865 3,166 1.39%
Tax-exempt 37,505 429 1.53% 14,067 198 1.88%
Investment securities - available for sale 324,469 3,150 1.30% 317,932 3,364 1.41%
Investment securities - trading 2,017 23 1.52% 1,442 21 1.94%
Loans and leases * 1,432,260 54,902 5.13% 1,299,135 51,419 5.27%
Total interest earning assets 1,829,427 58,206 4.25% 1,668,542 54,890 4.38%
Cash and due from banks 12,884 12,242
Less allowance for loan and lease losses (14,657) (13,270)
Other assets 151,038 143,563
Total assets $1,978,692 $1,811,077
Liabilities:
Savings,NOW and market rate deposits $963,249 $ 1,343 0.19% $807,874 $ 1,712 0.28%
Wholesale deposits 50,575 153 0.40% 68,922 199 0.38%
Time deposits 169,184 613 0.48% 197,607 1,217 0.82%
Total interest-bearing deposits $1,183,008 2,109 0.24% $1,074,403 3,128 0.39%
Long-term FHLB advances and other borrowings 155,412 1,907 1.64% 165,717 2,808 2.26%
Short-term borrowings 12,429 11 0.12% 13,244 14 0.14%
Subordinated debt -- -- 22,035 852 5.15%
Total Borrowings 167,841 1,918 1.53% 200,996 3,674 2.43%
Total interest-bearing liabilities 1,350,849 4,027 0.40% 1,275,399 6,802 0.71%
Noninterest-bearing deposits 393,576 319,767
Other liabilities 24,874 24,508
Total noninterest-bearing liabilities 418,450 344,275
Total liabilities 1,769,299 1,619,674
Shareholders' equity 209,393 191,403
Total liabilities and shareholders' equity $ 1,978,692 $ 1,811,077
Interest income to earning assets 4.25% 4.38%
Net interest spread 3.85% 3.67%
Effect of noninterest-bearing sources 0.11% 0.17%
Tax-equivalent net interest income/ margin on earning assets $ 54,179 3.96% $ 48,088 3.84%
Tax-equivalent adjustment $ 314 0.02% $ 248 0.02%
* 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.

CONTACT: Ted Peters, Chairman 610-581-4800 J. Duncan Smith, CFO 610-526-2466Source:Bryn Mawr Bank Corporation