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Bryn Mawr Bank Corporation Reports Record 4th Quarter Net Income of $6.5 Million, Driven By Strong Loan Growth; Wealth Assets Reach $7.3 Billion

BRYN MAWR, Pa., Jan. 28, 2014 (GLOBE NEWSWIRE) -- Bryn Mawr Bank Corporation (Nasdaq:BMTC), (the "Corporation"), parent of The Bryn Mawr Trust Company (the "Bank"), today reported net income of $6.5 million and diluted earnings per share of $0.47 for the three months ended December 31, 2013, as compared to net income of $5.3 million and diluted earnings per share of $0.40 for the same period in 2012.

Significant factors contributing to the results for the three months ended December 31, 2013, as compared to the same period in 2012, included increases in net interest income and wealth management revenues, and decreases in due diligence and merger-related expenses. These improvements were partially offset by decreases in gains on sale of residential mortgage loans and investment securities available for sale, as well as increases in salaries and employee benefits expense and other operating expenses.

For the twelve months ended December 31, 2013, net income of $24.4 million was a $3.3 million increase from the $21.1 million recorded for the same period in 2012. Diluted earnings per share for the twelve months ended December 31, 2013 increased $0.20, to $1.80, from $1.60 for the same period last year. Net income for the twelve months ended December 31, 2013 included pre-tax due diligence and merger-related expenses of $1.9 million as compared to $2.6 million for the same period in 2012.

"We were pleased to have yet another record quarter and record year of financial results," said Ted Peters, Chairman and CEO. "The strong loan growth we experienced in the second half of the year produced a healthy increase in our net interest income. This, along with our higher wealth revenues, provided solid core and repeatable earnings for the Bank," he added.

On January 23, 2014, the Board of Directors of the Corporation declared a quarterly dividend of $0.18 per share, payable March 1, 2014 to shareholders of record as of February 10, 2014.

"We remain well-positioned to take advantage of the improving regional and national economies," said Mr. Peters.

SIGNIFICANT ITEMS OF NOTE

Results of Operations – 4th Quarter 2013 Compared to the 4th Quarter 2012

The overall results for the three months ended December 31, 2013, as compared to the same period in 2012, were partially affected by the November 2012 purchase of deposits, loans and a branch location from First Bank of Delaware ("FBD").

  • Net income of $6.5 million for the three months ended December 31, 2013 increased $1.2 million, or 22.0%, from $5.3 million for the same period in 2012.
  • Net interest income for the three months ended December 31, 2013 was $19.1 million, an increase of $2.2 million, or 13.2%, from $16.9 million for the same period in 2012. The increase in net interest income between the periods was largely the result of a $177.7 million, or 13.2%, increase in average portfolio loans. This increase was partially related to loans acquired from FBD, which totaled $53.1 million as of December 31, 2013, which supplemented strong organic loan growth. In addition, the $48.1 million decrease in average time deposit balances between periods, largely attributable to time deposits acquired from FBD, which were allowed to run off, contributed to the $255 thousand decrease in tax-equivalent interest expense paid on deposits. Furthermore, although the average balance of long-term Federal Home Loan Bank ("FHLB") advances increased by $45.2 million between the periods, the tax-equivalent rate paid on these borrowings decreased by 56 basis points. This was partially the result of the Corporation's strategic prepayment of $20.0 million of higher-rate FHLB advances during the 1st quarter of 2013.
  • The tax-equivalent net interest margin of 4.03% for the three months ended December 31, 2013 was a 17 basis point increase from 3.86% for the same period in 2012. The increase was the result of a $142.8 million increase in average interest-earning assets whose tax-equivalent yield earned increased by 6 basis points, partially offset by a $67.3 million increase in average interest-bearing liabilities whose tax-equivalent rate paid dropped by 14 basis points between the periods. In addition, the tax-equivalent yield earned on investment securities available for sale increased 36 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 22 basis point decline in the tax-equivalent yield on portfolio loans. The 14 basis point reduction in rate paid on interest-bearing liabilities was primarily related to the prepayment of $20.0 million of FHLB advances during the first quarter of 2013. Supplementing these reductions in borrowing costs was a 10 basis point drop in rates paid on interest-bearing deposits.
  • Non-interest income for the three months ended December 31, 2013 decreased $935 thousand as compared to the same period in 2012. Factors contributing to this decrease included a $1.9 million decrease in the gain on sale of residential mortgage loans and a $293 thousand decline in gain on sale of investment securities available for sale. During the three months ended December 31, 2013, the volume of residential mortgage loans sold to the secondary market continued to decline, with residential mortgages sold totaling $13.1 million, as compared to $71.6 million during the same period in 2012. In addition to mortgage loan sales, sales of investment securities available for sale during the 2013 quarter resulted in a loss of $10 thousand, as compared to a gain of $283 thousand for the same period in 2012. The sale of investment securities available for sale during the 4th quarter of 2013 was limited to a particular section of the portfolio and was designed to limit extension risk. Partially offsetting these decreases in non-interest income was a $741 thousand increase in revenue from wealth management services for the three months ended December 31, 2013 as compared to the same period in 2012. Wealth Management Division assets under management, administration, supervision and brokerage as of December 31, 2013 were $7.3 billion, an increase of $605 million, or 9.1%, from December 31, 2012. This increase was driven by organic growth due to the success of the division's strategic initiatives, market appreciation and other new business between the dates.
  • Non-interest expense for the three months ended December 31, 2013 decreased $431 thousand, to $20.7 million, as compared to $21.1 million for the same period in 2012. The primary driver for this decrease was the $1.0 million decrease in due diligence and merger-related expenses between the periods. In addition, decreases in professional fees and debt extinguishment costs between the periods contributed to the improvement. Partially offsetting these cost reductions was a $948 thousand increase in salaries and employee benefits for the three months ended December 31, 2013 as compared to the same period in 2012. Salaries and benefits increased partially as a result of the addition of the branch and lending staff from FBD and the new personnel for our full-service branch in Bala Cynwyd, Pennsylvania, which opened at the end of 2012, as well as accruals for annual bonuses, higher equity compensation costs and annual salary increases.
  • Nonperforming loans and leases of $10.5 million as of December 31, 2013 were 0.68% 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 $781 thousand to other real estate owned related to six residential properties. For the three months ended December 31, 2013, the Corporation recorded net loan and lease charge-offs of $324 thousand, as compared to $213 thousand for the same period in 2012. The provision for loan and lease losses for the three months ended December 31, 2013 was $812 thousand, as compared to $1.0 million for the same period in 2012.

Results of Operations – 4th Quarter 2013 Compared to the 3rd Quarter 2013

  • Net income of $6.5 million for the three months ended December 31, 2013 increased $70 thousand, or 1.1%, from $6.4 million for the three months ended September 30, 2013.
  • Net interest income for the three months ended December 31, 2013 was $19.1 million, an increase of $592 thousand, or 3.2%, from $18.5 million for the three months ended September 30, 2013. The increase in net interest income between the periods was largely the result of a $59.2 million, or 4.0%, increase in average portfolio loans partially offset by a 6 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 1.40% for the 3rd quarter of 2013 to 1.64% for the 4th quarter of 2013 as rising interest rates have continued to slow the rate of prepayments of mortgage-related securities. Partially offsetting these increases in tax-equivalent interest income was the $51.3 million increase in average borrowings, as new FHLB advances were taken to support the loan growth during the 4th quarter.
  • The tax-equivalent net interest margin of 4.03% for the three months ended December 31, 2013 was a 2 basis point decrease from the 4.05% tax-equivalent net interest margin for the three months ended September 30, 2013. The slight decrease between periods resulted as a $66.2 million increase in average interest-earning assets was largely offset by a $42.7 million increase in average interest-bearing liabilities. Although the increase in average interest-earning assets outpaced the increase in average interest-bearing liabilities, the tax-equivalent yield earned on interest-earning assets remained unchanged at 4.33%, while the tax-equivalent rate paid on interest-bearing liabilities increased by 2 basis points.
  • Non-interest income for the three months ended December 31, 2013 increased $848 thousand as compared to the three months ended September 30, 2013. Factors contributing to this increase included a $471 thousand increase in revenue from wealth management services and a $530 thousand increase in other operating income, which was largely comprised of income from the pay off, in full, of a commercial loan acquired from First Keystone Financial in 2010, which had been written down at acquisition, in anticipation of a loss. Wealth Management Division assets under management, administration, supervision and brokerage as of December 31, 2013 grew to $7.3 billion, an increase of $185 million, or 2.6%, from September 30, 2013.
  • Non-interest expense for the three months ended December 31, 2013 increased $1.3 million, to $20.7 million, as compared to $19.3 million for the three months ended September 30, 2013. The increase between the periods was related to increases of $929 thousand in salaries and employee benefits and $438 thousand in other operating expenses. The increase in salaries and employee benefits was primarily related to accruals of employee bonuses and their associated employment taxes and higher equity compensation costs. The $438 thousand increase in other operating expenses between the periods was largely related to a $180 thousand increase in the reserve established to satisfy make-whole requests for mortgage loans originated by the Corporation and subsequently sold into the secondary market. In addition, an increase in $192 thousand in information technology-related costs was recorded, as the Corporation continues to implement various infrastructure improvements throughout the organization.
  • Nonperforming loans and leases of $10.5 million as of December 31, 2013 were 0.68% of total portfolio loans and leases, as compared $10.6 million, or 0.71% of total portfolio loans and leases as of September 30, 2013. For the three months ended December 31, 2013, the Corporation recorded net loan and lease charge-offs of $324 thousand, a slight improvement from the $376 thousand net loan and lease charge-offs recorded in the 3rd quarter of 2013. The provision for loan and lease losses decreased slightly, to $812 thousand, for the three months ended December 31, 2013, as compared to $959 thousand for the previous quarter.

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

  • Total portfolio loans and leases of $1.55 billion as of December 31, 2013 increased by $148.7 million from December 31, 2012 with commercial mortgages, commercial and industrial loans, and construction loans comprising the majority of the increase.
  • The allowance for loan and lease losses as of December 31, 2013 was $15.5 million, or 1.00% of portfolio loans and $14.4 million, or 1.03% of portfolio loans and leases as of December 31, 2012.
  • Total assets as of December 31, 2013 totaled $2.06 billion, an increase of $25.8 million from December 31, 2012. Although loan growth totaled $148.7 million for the period, much of this growth was funded by reductions in interest-bearing deposits with other banks and cash flows received from the available for sale investment portfolio.
  • Deposits of $1.59 billion, as of December 31, 2013, decreased $43.3 million from December 31, 2012. The 2.7% decrease was largely related to a $77.8 million decrease in time deposits between the dates. The Corporation has continued its planned run-off of its higher-rate certificates of deposit.
  • The capital ratios for the Bank and the Corporation, as shown in the table at page 17 below, indicate levels well above the regulatory minimum to be considered "well capitalized." In particular, 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 8.78% and 8.92%, respectively, at December 31, 2013. These increases were primarily the result of increases in retained earnings and issuances of common stock, partially offset by nominal growth in total assets.

EARNINGS CONFERENCE CALL

The Corporation will hold an earnings conference call at 8:30 am ET on Wednesday, January 29, 2014. 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 Tuesday, February 11, 2014. A recording of the earnings conference call may be obtained by calling 1-877-344-7529, referring to conference number 10038761.

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/bmtc140131.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 subsequently 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
December 31, Sepember 30, June 30, March 31, December 31,
2013 2013 2013 2013 2012
Interest income $ 20,525 $ 19,820 $ 19,217 $ 18,855 $ 18,682
Interest expense 1,400 1,287 1,294 1,446 1,786
Net interest income 19,125 18,533 17,923 17,409 16,896
Provision for loan and lease losses 812 959 1,000 804 1,000
Net interest income after provision for loan and lease losses 18,313 17,574 16,923 16,605 15,896
Fees for wealth management services 9,106 8,635 9,094 8,349 8,365
Loan servicing and other fees 465 481 448 451 473
Service charges on deposits 638 627 596 584 654
Net gain on sale of residential mortgage loans 529 578 1,492 1,518 2,424
Net (loss) gain on sale of investment securities available for sale (10) -- -- 2 283
Net loss on sale of other real estate owned (106) (1) (141) (52) --
Bank owned life insurance income 88 72 85 113 98
Other operating income 1,525 995 1,369 825 873
Non-interest income 12,235 11,387 12,943 11,790 13,170
Salaries and wages 9,438 9,012 9,086 8,810 8,848
Employee benefits 2,399 1,896 2,212 2,325 2,041
Net gain on curtailment of nonqualified pension plan -- -- (120) (570) --
Occupancy and bank premises 1,738 1,646 1,728 1,750 1,616
Furniture fixtures and equipment 1,017 920 1,221 819 961
Advertising 431 303 380 412 363
Net (recovery) impairment of mortgage servicing rights (10) 33 (91) 71 81
Amortization of mortgage servicing rights 123 187 218 212 248
Amortization of intangible assets 655 657 660 661 673
FDIC insurance 259 271 275 258 255
Due diligence and merger-related expenses 155 328 688 714 1,190
Professional fees 581 636 664 575 1,031
Early extinguishment of debt - costs and premiums -- -- -- 347 338
Other operating expenses 3,872 3,434 3,603 3,851 3,444
Non-interest expense 20,658 19,323 20,524 20,235 21,089
Income before income taxes 9,890 9,638 9,342 8,160 7,977
Income tax expense 3,419 3,237 3,090 2,840 2,673
Net income $ 6,471 $ 6,401 $ 6,252 $ 5,320 $ 5,304
Per share data:
Weighted average shares outstanding 13,419,269 13,336,799 13,280,624 13,205,538 13,157,295
Dilutive common shares 308,674 275,343 227,150 230,413 205,545
Adjusted weighted average dilutive shares 13,727,943 13,612,142 13,507,774 13,435,951 13,362,840
Basic earnings per common share $0.48 $0.48 $0.47 $0.40 $0.40
Diluted earnings per common share $0.47 $0.47 $0.46 $0.40 $0.40
Dividend declared per share $0.18 $0.17 $0.17 $0.17 $0.16
Effective tax rate 34.6% 33.6% 33.1% 34.8% 33.5%
Bryn Mawr Bank Corporation
Consolidated Statements of Income - (unaudited)
(dollars in thousands, except per share data)
For The Twelve Months Ended December 31,
2013 2012
Interest income $ 78,417 $ 73,323
Interest expense 5,427 8,588
Net interest income 72,990 64,735
Provision for loan and lease losses 3,575 4,003
Net interest income after provision for loan and lease losses 69,415 60,732
Fees for wealth management services 35,184 29,798
Loan servicing and other fees 1,845 1,776
Service charges on deposits 2,445 2,477
Net gain on sale of residential mortgage loans 4,117 6,735
Net (loss) gain on sale of investment securities available for sale (8) 1,415
Bank owned life insurance income 358 428
Net loss on sale of other real estate owned (300) (86)
Other operating income 4,714 3,843
Non-interest income 48,355 46,386
Salaries and wages 36,346 33,131
Employee benefits 8,832 8,127
Net gain on curtailment of nonqualified pension plan (690) --
Occupancy and bank premises 6,862 5,874
Furniture fixtures and equipment 3,977 3,727
Advertising 1,526 1,309
Net impairment of mortgage servicing rights 3 163
Amortization of mortgage servicing rights 740 966
Amortization of intangible assets 2,633 2,411
FDIC insurance 1,063 970
Due diligence and merger-related expenses 1,885 2,629
Professional fees 2,456 2,868
Early extinguishment of debt - costs and premiums 347 526
Other operating expenses 14,760 12,200
Non-interest expense 80,740 74,901
Income before income taxes 37,030 32,217
Income tax expense 12,586 11,070
Net income $ 24,444 $ 21,147
Per share data:
Weighted average shares outstanding 13,311,215 13,090,110
Dilutive common shares 260,395 151,736
Adjusted weighted average shares 13,571,610 13,241,846
Basic earnings per common share $1.84 $1.62
Diluted earnings per common share $1.80 $1.60
Dividend declared per share $0.69 $0.64
Effective tax rate 34.0% 34.4%
Bryn Mawr Bank Corporation
Consolidated Balance Sheets - (unaudited)
(dollars in thousands)
December 31, September 30, June 30, March 31, December 31,
2013 2013 2013 2013 2012
Assets
Interest-bearing deposits with banks $ 67,618 $ 71,203 $ 95,903 $ 136,534 $ 159,483
Investment securities - available for sale 285,808 319,917 322,961 327,799 316,614
Investment securities - trading 3,437 2,357 2,180 2,168 1,447
Loans held for sale 1,350 1,284 2,207 3,233 3,412
Portfolio loans:
Consumer 16,926 17,572 18,404 18,725 17,666
Commercial & industrial 328,459 303,259 296,073 293,171 291,620
Commercial mortgages 625,341 622,771 587,261 563,431 546,358
Construction 46,369 39,055 28,718 26,135 26,908
Residential mortgages 300,243 291,645 280,687 284,819 288,212
Home equity lines & loans 189,571 187,634 183,006 183,984 194,861
Leases 40,276 38,079 36,770 34,974 32,831
Total portfolio loans and leases 1,547,185 1,500,015 1,430,919 1,405,239 1,398,456
Earning assets 1,905,398 1,894,776 1,854,170 1,874,973 1,879,412
Cash and due from banks 13,453 24,958 14,208 12,013 16,203
Allowance for loan and lease losses (15,515) (15,027) (14,444) (14,447) (14,425)
Premises and equipment 31,796 31,436 30,947 31,072 31,170
Accrued interest receivable 5,728 5,703 6,097 6,168 5,955
Mortgage servicing rights 4,750 4,744 4,790 4,593 4,491
Goodwill 32,843 32,843 32,843 32,897 32,897
Other intangible assets 19,365 20,020 20,677 21,337 21,998
Bank owned life insurance 20,220 20,132 20,060 19,975 19,862
FHLB stock 11,654 12,590 13,028 10,663 10,761
Deferred income taxes 8,690 11,955 11,788 10,854 12,303
Other investments 4,437 4,337 4,378 4,347 4,346
Other assets 18,846 10,506 10,980 15,718 10,912
Total assets $ 2,061,665 $ 2,058,973 $ 2,009,522 $ 2,030,163 $ 2,035,885
Liabilities and shareholders' equity
Interest-bearing deposits:
Interest-bearing checking $ 266,787 $ 244,826 $ 262,316 $ 263,820 $ 270,279
Money market 544,310 548,011 551,750 588,478 559,470
Savings 135,240 137,431 136,307 135,124 129,091
Wholesale non-maturity deposits 42,937 57,195 30,315 32,879 45,162
Wholesale time deposits 34,639 23,127 12,139 11,325 12,421
Time deposits 140,794 145,119 161,146 171,575 218,586
Total interest-bearing deposits 1,164,707 1,155,709 1,153,973 1,203,201 1,235,009
Non-interest-bearing deposits 426,640 394,947 395,742 407,453 399,673
Total deposits 1,591,347 1,550,656 1,549,715 1,610,654 1,634,682
Long-term FHLB advances and other borrowings 205,644 191,645 152,642 148,636 161,315
Short-term borrowings 10,891 75,588 71,768 38,362 9,402
Other liabilities 23,885 23,323 22,929 22,343 26,921
Shareholders' equity 229,898 217,761 212,468 210,168 203,565
Total liabilities and shareholders' equity $ 2,061,665 $ 2,058,973 $ 2,009,522 $ 2,030,163 $ 2,035,885
Bryn Mawr Bank Corporation
Consolidated Quarterly Average Balance Sheets - (unaudited)
(dollars in thousands)
For The Three Months Ended
December 31, September 30, June 30, March 31, December 31,
2013 2013 2013 2013 2012
Assets
Interest-bearing deposits with banks $ 56,569 $ 35,589 $ 59,981 $ 117,372 $ 91,234
Investment securities - available for sale 310,183 324,418 325,729 323,247 311,372
Investment securities - trading 2,368 2,182 2,168 1,695 1,400
Loans held for sale 1,197 867 2,233 2,645 4,047
Portfolio loans and leases 1,522,408 1,463,492 1,425,836 1,401,038 1,341,826
Earning assets 1,892,725 1,826,548 1,815,947 1,845,997 1,749,879
Cash and due from banks 13,132 12,497 12,876 13,287 14,817
Allowance for loan and lease losses (15,226) (14,653) (14,625) (14,693) (14,063)
Premises and equipment 31,770 31,216 31,254 31,415 30,189
Goodwill 32,843 32,843 32,896 32,897 29,642
Other intangible assets 19,741 20,400 21,055 21,725 22,084
Bank owned life insurance 20,163 20,086 20,005 19,905 19,800
FHLB stock 12,242 12,809 10,430 10,544 10,572
Deferred income taxes 11,733 11,946 10,997 12,183 11,577
Other assets 22,288 21,904 25,296 21,294 23,800
Total assets $ 2,041,411 $ 1,975,596 $ 1,966,131 $ 1,994,554 $ 1,898,297
Liabilities and shareholders' equity
Interest-bearing deposits:
Interest-bearing checking $ 248,722 $ 249,982 $ 263,842 $ 266,900 $ 241,730
Money market 548,351 559,911 571,327 576,422 516,174
Savings 137,327 135,070 134,485 132,142 132,725
Wholesale non-maturity deposits 48,465 47,804 31,124 38,683 38,932
Wholesale time deposits 22,735 10,911 11,610 11,495 10,689
Time deposits 142,258 152,788 164,247 190,937 190,332
Total interest-bearing deposits 1,147,858 1,156,466 1,176,635 1,216,579 1,130,582
Non-interest bearing deposits 420,072 402,292 391,387 386,881 359,008
Total deposits 1,567,930 1,558,758 1,568,022 1,603,460 1,489,590
Long-term FHLB advances and other borrowings 204,780 163,818 150,578 148,699 159,559
Short-term borrowings 25,364 14,995 13,248 11,978 13,243
Subordinated debentures -- -- -- -- 7,283
Other liabilities 23,401 24,904 23,617 26,123 27,175
Shareholders' equity 219,936 213,121 210,666 204,294 201,447
Total liabilities and shareholders' equity $ 2,041,411 $ 1,975,596 $ 1,966,131 $ 1,994,554 $ 1,898,297
Bryn Mawr Bank Corporation
Consolidated Average Balance Sheets - (unaudited)
(dollars in thousands)
For The Twelve Months Ended December 31,
2013 2012
Assets
Interest bearing deposits with banks $ 67,124 $ 60,389
Investment securities - available for sale 320,868 316,283
Investment securities - trading 2,106 1,431
Loans held for sale 1,729 3,743
Portfolio loans and leases 1,453,555 1,307,140
Earning assets 1,845,382 1,688,986
Cash and due from banks 12,946 12,890
Allowance for loan and lease losses (14,800) (13,469)
Premises and equipment 31,414 29,309
Goodwill 32,869 27,582
Intangible assets 20,724 20,981
Bank owned life insurance 20,041 19,642
FHLB stock 11,881 10,766
Deferred income taxes 11,714 12,147
Other assets 22,329 24,167
Total assets $ 1,994,500 $ 1,833,001
Liabilities and shareholders' equity
Interest-bearing deposits:
Interest-bearing checking $ 257,292 $ 233,893
Money market 563,914 461,883
Savings 134,771 132,899
Wholesale non-maturity deposits 41,564 46,815
Wholesale time deposits 14,210 17,256
Time deposits 162,397 195,778
Total interest-bearing deposits 1,174,148 1,088,524
Non-interest-bearing deposits 400,254 329,631
Total deposits 1,574,402 1,418,155
Long-term FHLB advances and other borrowings 167,089 163,888
Short-term borrowings 16,457 13,525
Subordinated debentures -- 18,327
Other liabilities 24,502 25,242
Shareholders' equity 212,050 193,864
Total liabilities and shareholders' equity $ 1,994,500 $ 1,833,001
Bryn Mawr Bank Corporation
Consolidated Selected Financial Data - (unaudited)
(dollars in thousands, except per share data)
For The Three Months Ended or As Of
December 31, September 30, June 30, March 31, December 31,
2013 2013 2013 2013 2012
Asset Quality Data
Nonaccrual loans and leases $ 10,530 $ 10,613 $ 10,489 $ 12,098 $ 14,040
90 days or more past due loans, still accruing -- -- -- 728 728
Nonperforming loans and leases 10,530 10,613 10,489 12,826 14,768
Other real estate owned 855 1,253 1,205 545 906
Total nonperforming assets $ 11,385 $ 11,866 $ 11,694 $ 13,371 $ 15,674
Troubled debt restructurings included in nonperforming assets $ 1,699 $ 2,628 $ 2,869 $ 3,686 $ 3,106
Troubled debt restructurings in compliance with modified terms 7,277 8,947 8,157 7,438 8,008
Total troubled debt restructurings $ 8,976 $ 11,575 $ 11,026 $ 11,124 $ 11,114
Nonperforming loans and leases / portfolio loans & leases 0.68% 0.71% 0.73% 0.91% 1.06%
Nonperforming assets / total assets 0.55% 0.58% 0.58% 0.66% 0.77%
Net loan and lease charge-offs / average loans and leases (annualized) 0.09% 0.10% 0.28% 0.22% 0.07%
Delinquency rate* - Performing and nonperforming loans and leases 30 days or more past due 0.66% 0.68% 0.73% 1.23% 1.02%
Performing loans and leases - 30-89 days past due $ 1,718 $ 1,227 $ 2,328 $ 4,115 $ 2,053
Delinquency rate* - Performing loans and leases - 30-89 days past due 0.11% 0.08% 0.16% 0.29% 0.15%
* as a percentage of total loans and leases
Changes in the allowance for loan and lease losses:
Balance, beginning of period $ 15,027 $ 14,444 $ 14,447 $ 14,425 $ 13,638
Charge-offs (484) (501) (1,164) (830) (450)
Recoveries 160 125 161 48 237
Net charge-offs (324) (376) (1,003) (782) (213)
Provision for loan and lease losses 812 959 1,000 804 1,000
Balance, end of period $ 15,515 $ 15,027 $ 14,444 $ 14,447 $ 14,425
Allowance for loan and lease losses / loans and leases 1.00% 1.00% 1.01% 1.03% 1.03%
Allowance for loan and lease losses / nonperforming loans and leases 147.3% 141.6% 137.7% 112.6% 97.7%
Bryn Mawr Bank Corporation
Consolidated Selected Financial Data - (unaudited)
(dollars in thousands, except per share data)
For The Three Months Ended or As Of
December 31, September 30, June 30, March 31, December 31,
2013 2013 2013 2013 2012
Selected ratios (annualized):
Return on average assets 1.26% 1.29% 1.28% 1.08% 1.11%
Return on average shareholders' equity 11.67% 11.92% 11.90% 10.56% 10.47%
Return on average tangible equity (2) 15.35% 15.89% 16.00% 14.42% 14.09%
Tax-equivalent yield on loans and leases 5.02% 5.08% 5.13% 5.16% 5.24%
Tax-equivalent yield on interest-earning assets 4.33% 4.33% 4.27% 4.16% 4.27%
Cost of interest-bearing funds 0.40% 0.38% 0.39% 0.43% 0.54%
Tax-equivalent net interest margin 4.03% 4.05% 3.98% 3.85% 3.86%
Book value per share $ 16.84 $ 16.07 $ 15.71 $ 15.57 $ 15.17
Tangible book value per share $ 13.02 $ 12.17 $ 11.75 $ 11.55 $ 11.08
Shares outstanding at end of period 13,650,354 13,551,438 13,528,078 13,500,413 13,414,552
Selected data:
Mortgage loans originated $ 37,190 $ 40,426 $ 55,066 $ 65,105 $ 82,458
Residential mortgage loans sold - servicing retained $ 12,523 $ 17,768 $ 46,209 $ 51,414 $ 71,596
Residential mortgage loans sold - servicing released 531 -- 347 189 --
Total residential mortgage loans sold $ 13,054 $ 17,768 $ 46,556 $ 51,603 $ 71,596
Yield on loans sold 4.05% 3.25% 3.20% 2.94% 3.39%
Residential mortgage loans serviced for others $ 628,879 $ 627,058 $ 623,498 $ 603,734 $ 595,317
Total wealth assets under management, administration, supervision and brokerage (1) $ 7,268,273 $ 7,082,926 $ 6,854,838 $ 6,987,974 $ 6,663,212
(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 Twelve Months Ended December 31,
2013 2012
Selected ratios (annualized):
Return on average assets 1.23% 1.15%
Return on average shareholders' equity 11.53% 10.91%
Return on average tangible equity (1) 15.43% 14.55%
Tax-equivalent yield on loans and leases 5.10% 5.27%
Tax-equivalent yield on interest-earning assets 4.27% 4.36%
Cost of interest-bearing liabilities 0.40% 0.67%
Tax-equivalent net interest margin 3.98% 3.85%
Selected data:
Residential mortgage loans originated $ 197,787 $ 253,725
Residential mortgage loans sold - servicing retained $ 127,914 $ 201,352
Residential mortgage loans sold - servicing released 1,067 3,461
Total residential mortgage loans sold $ 128,981 $ 204,813
(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 December 31, 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 $ 99 $ (3) $ -- $ -- $ --
Obligations of the U.S. Government and agencies 71,097 69,568 (1,529) 73,183 73,872 689
State & political subdivisions 37,140 36,977 (163) 30,243 30,384 141
Mortgage-backed securities 119,044 119,363 319 128,537 131,826 3,289
Collateralized mortgage obligations 44,463 44,243 (220) 62,116 62,703 587
Other debt securities 1,900 1,887 (13) 1,900 1,900 --
Bond mutual funds 11,456 11,457 1 11,456 11,527 71
Investment CDs -- -- -- 2,350 2,364 14
Other investments 1,925 2,214 289 1,962 2,038 76
Total investment portfolio available for sale $ 287,127 $ 285,808 $ (1,319) $ 311,747 $ 316,614 $ 4,867
Capital Ratios
Regulatory Minimum
To Be December 31, September 30, June 30, March 31, December 31,
Bryn Mawr Trust Company Well Capitalized 2013 2013 2013 2013 2012
Tier I capital to risk weighted assets ("RWA") 6.00% 11.40% 11.36% 11.58% 11.52% 11.20%
Total (Tier II) capital to RWA 10.00% 12.38% 12.33% 12.55% 12.51% 12.20%
Tier I leverage ratio 5.00% 9.14% 9.22% 9.07% 8.70% 8.84%
Tangible equity ratio N/A 8.78% 8.32% 8.29% 8.11% 7.72%
Bryn Mawr Bank Corporation
Tier I capital to RWA 6.00% 11.57% 11.33% 11.47% 11.33% 11.02%
Total (Tier II) capital to RWA 10.00% 12.55% 12.30% 12.44% 12.32% 12.02%
Tier I leverage ratio 5.00% 9.29% 9.22% 9.00% 8.58% 8.72%
Tangible equity ratio N/A 8.92% 8.30% 8.21% 7.98% 7.60%
Bryn Mawr Bank Corporation
Quarterly Average Balances and Tax-Equivalent Interest Income and Expense and Tax-Equivalent Yields - (unaudited)
For The Three Months Ended
December 31, 2013 September 30, 2013 June 30, 2013 March 31, 2013 December 31, 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 $ 56,569 $ 27 0.19% $ 35,589 $ 21 0.23% $ 59,981 $ 41 0.27% $ 117,372 $ 69 0.24% $ 91,234 $ 41 0.18%
Investment securities - available for sale:
Taxable 271,152 1,127 1.65% 284,558 988 1.38% 287,287 846 1.18% 289,097 889 1.25% 286,889 897 1.24%
Tax-exempt 39,031 159 1.62% 39,860 159 1.58% 38,442 146 1.52% 34,150 125 1.48% 24,483 102 1.66%
Investment securities - available for sale 310,183 1,286 1.64% 324,418 1,147 1.40% 325,729 992 1.22% 323,247 1,014 1.27% 311,372 999 1.28%
Investment securities - trading 2,368 51 8.54% 2,182 7 1.27% 2,168 13 2.41% 1,695 16 3.83% 1,400 16 4.55%
Loans and leases * 1,523,605 19,277 5.02% 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%
Total interest-earning assets 1,892,725 20,641 4.33% 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%
Cash and due from banks 13,132 12,497 12,876 13,287 14,817
Less allowance for loan and lease losses (15,226) (14,653) (14,625) (14,693) (14,063)
Other assets 150,780 151,204 151,933 149,963 147,664
Total assets $ 2,041,411 $ 1,975,596 $ 1,966,131 $ 1,994,554 $ 1,898,297
Liabilities:
Savings, NOW and market rate deposits $ 934,400 $ 414 0.18% $ 944,963 $ 419 0.18% $ 969,654 $ 445 0.18% $ 975,464 $ 479 0.20% $ 890,629 $ 557 0.25%
Wholesale deposits 71,200 85 0.47% 58,715 55 0.37% 42,734 44 0.41% 50,178 54 0.44% 49,621 58 0.47%
Time deposits 142,258 151 0.42% 152,788 165 0.43% 164,247 205 0.50% 190,937 242 0.51% 190,332 290 0.61%
Total interest-bearing deposits 1,147,858 650 0.22% 1,156,466 639 0.22% 1,176,635 694 0.24% 1,216,579 775 0.26% 1,130,582 905 0.32%
Subordinated debentures -- -- -- -- -- -- -- -- -- -- -- -- 7,283 79 4.32%
Short-term borrowings 25,364 12 0.19% 14,995 5 0.13% 13,358 4 0.12% 11,978 4 0.14% 13,243 4 0.12%
Long-term FHLB advances and other borrowings 204,780 738 1.43% 163,818 643 1.56% 150,468 596 1.59% 148,699 667 1.82% 159,559 798 1.99%
Total Borrowings 230,144 750 1.29% 178,813 648 1.44% 163,826 600 1.47% 160,677 671 1.69% 180,085 881 1.95%
Total interest-bearing liabilities 1,378,002 1,400 0.40% 1,335,279 1,287 0.38% 1,340,461 1,294 0.39% 1,377,256 1,446 0.43% 1,310,667 1,786 0.54%
Noninterest-bearing deposits 420,072 402,292 391,387 386,881 359,008
Other liabilities 23,401 24,904 23,617 26,123 27,175
Total noninterest-bearing liabilities 443,473 427,196 415,004 413,004 386,183
Total liabilities 1,821,475 1,762,475 1,755,465 1,790,260 1,696,850
Shareholders' equity 219,936 213,121 210,666 204,294 201,447
Total liabilities and shareholders' equity $ 2,041,411 $ 1,975,596 $ 1,966,131 $ 1,994,554 $ 1,898,297
Interest income to earning assets 4.33% 4.33% 4.27% 4.16% 4.27%
Net interest spread 3.93% 3.95% 3.88% 3.73% 3.73%
Effect of noninterest-bearing sources 0.10% 0.10% 0.10% 0.12% 0.13%
Tax-equivalent net interest income/ margin on earning assets $ 19,241 4.03% $ 18,643 4.05% $ 18,029 3.98% $ 17,507 3.85% $ 16,991 3.86%
Tax-equivalent adjustment $ 116 0.02% $ 110 0.02% $ 106 0.02% $ 98 0.03% $ 96 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 Twelve Months Ended December 31,
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 $ 67,124 158 0.24% $ 60,389 126 0.21%
Investment securities available for sale:
Taxable 282,978 3,849 1.36% 299,598 4,064 1.36%
Tax-exempt 37,890 588 1.55% 16,685 298 1.79%
Investment securities - available for sale 320,868 4,437 1.38% 316,283 4,362 1.38%
Investment securities - trading 2,106 73 3.47% 1,431 37 2.59%
Loans and leases * 1,455,284 74,180 5.10% 1,310,883 69,141 5.27%
Total interest earning assets 1,845,382 78,848 4.27% 1,688,986 73,666 4.36%
Cash and due from banks 12,946 12,890
Less allowance for loan and lease losses (14,800) (13,469)
Other assets 150,972 144,594
Total assets $1,994,500 $1,833,001
Liabilities:
Savings,NOW and market rate deposits $955,977 $ 1,757 0.18% $828,675 $ 2,269 0.27%
Wholesale deposits 55,774 238 0.43% 64,071 257 0.40%
Time deposits 162,397 763 0.47% 195,778 1,507 0.77%
Total interest-bearing deposits $1,174,148 2,758 0.23% $1,088,524 4,033 0.37%
Long-term FHLB advances and other borrowings 167,089 2,644 1.58% 163,888 3,603 2.20%
Short-term borrowings 16,457 25 0.15% 13,525 21 0.16%
Subordinated debt -- -- 18,327 931 5.08%
Total Borrowings 183,546 2,669 1.45% 195,740 4,555 2.33%
Total interest-bearing liabilities 1,357,694 5,427 0.40% 1,284,264 8,588 0.67%
Noninterest-bearing deposits 400,254 329,631
Other liabilities 24,502 25,242
Total noninterest-bearing liabilities 424,756 354,873
Total liabilities 1,782,450 1,639,137
Shareholders' equity 212,050 193,864
Total liabilities and shareholders' equity $ 1,994,500 $ 1,833,001
Interest income to earning assets 4.27% 4.36%
Net interest spread 3.87% 3.69%
Effect of noninterest-bearing sources 0.11% 0.16%
Tax-equivalent net interest income/ margin on earning assets $ 73,421 3.98% $ 65,078 3.85%
Tax-equivalent adjustment $ 431 0.02% $ 343 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