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Bryn Mawr Bank Corporation Reports Record First Quarter Earnings of $6.7 Million, Wealth Assets Reach $7.4 Billion

BRYN MAWR, Pa., April 30, 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 $6.7 million and diluted earnings per share of $0.49 for the three months ended March 31, 2014, as compared to net income of $5.3 million and diluted earnings per share of $0.40 for the same period in 2013. For the three months ended March 31, 2014, diluted earnings per share, excluding tax-effected due diligence and merger-related costs (a non-GAAP measure1) were $0.50, as compared to $0.43 for the same period in 2013.

Significant factors contributing to the results for the three months ended March 31, 2014, as compared to the same period in 2013, included increases in net interest income and wealth management revenues, and decreases in salaries and employee benefits, due diligence and merger-related expenses and other operating expenses. These improvements were partially offset by a significant decrease in the gain on sale of residential mortgage loans between the periods.

"We were pleased to see the continued increase in our quarterly earnings," said Ted Peters, Chairman and CEO. "The steady rise in loan volume, along with the careful management of our deposit pricing, has enabled us to maintain a healthy level of net interest income. This, along with the strong performance of our Wealth division, has resulted in another record quarter for the Corporation," he added.

On April 30, 2014, the Board of Directors of the Corporation declared a quarterly dividend of $0.18 per share, payable June 1, 2014 to shareholders of record as of May 13, 2014.

SIGNIFICANT ITEMS OF NOTE

Results of Operations – 1st Quarter 2014 Compared to the 1st Quarter 2013

  • Net income of $6.7 million for the three months ended March 31, 2014 increased $1.4 million, or 25.7%, from $5.3 million for the same period in 2013.
  • Net interest income for the three months ended March 31, 2014 was $18.7 million, an increase of $1.3 million, or 7.6%, from $17.4 million for the same period in 2013. The increase in net interest income between the periods was largely the result of a $146.0 million, or 10.4%, increase in average portfolio loans. This increase was primarily in the commercial mortgage, commercial and industrial, and construction segments of the loan portfolio. In addition, the $58.5 million decrease in average interest-bearing deposit balances between periods was offset by increases in long-term FHLB advances, whose average balance increased by $63.7 million, while the average rate paid on these FHLB borrowings decreased by 40 basis points.
  • The tax-equivalent net interest margin of 4.02% for the three months ended March 31, 2014 was a 17 basis point increase from 3.85% for the same period in 2013. The increase was the result of a $56.5 million increase in average interest-earning assets whose tax-equivalent yield increased by 16 basis points, partially offset by a $6.3 million increase in average interest-bearing liabilities whose tax-equivalent rate paid declined by 1 basis point between the periods. The 16 basis point increase in the tax-equivalent yield on interest-earning assets resulted as the tax-equivalent yield earned on investment securities available for sale increased 35 basis points between periods, as rising interest rates have continued to reduce prepayments of mortgage-related securities. This yield increase was partially offset by a 16 basis point decline in the tax-equivalent yield earned on portfolio loans between the periods. The tax-equivalent interest paid on interest-bearing liabilities remained virtually unchanged between periods as the continued outflow of higher-rate certificates of deposit was replaced with long-term FHLB advances.
  • Non-interest income for the three months ended March 31, 2014 decreased $651 thousand as compared to the same period in 2013. The primary cause for this decline was a $1.2 million, or 78.7%, decrease in the gain on sale of residential mortgage loans. During the three months ended March 31, 2014, the volume of residential mortgage loans sold to the secondary market continued to decline, with residential mortgages sold totaling $9.2 million, as compared to $51.6 million during the same period in 2013, an 82.1% decrease. This marked decline was a direct result of rising interest rates curtailing mortgage refinancing activity. Partially offsetting this decrease in non-interest income was a $564 thousand increase in revenue from wealth management services for the three months ended March 31, 2014 as compared to the same period in 2013. Wealth Management Division assets under management, administration, supervision and brokerage as of March 31, 2014 were $7.4 billion, an increase of $374 million, or 5.4%, from March 31, 2013. 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 March 31, 2014 decreased $1.3 million, to $18.9 million, as compared to $20.2 million for the same period in 2013. Contributing to this change were decreases of $716 thousand in salaries and employee benefits and $450 thousand in due diligence and merger-related expenses. The decline in salaries and employee benefits was related to a reduction in incentive-based payments to mortgage originators, which was consistent with the decline in mortgage sales mentioned above, as well as a decrease in other performance-based incentives. Also, employee benefits expense experienced a decrease, as better-than-expected returns on pension assets in 2013 along with an increase in the discount rate used to calculate periodic pension costs helped reduce costs associated with the Corporation's retirement plans. Due diligence and merger-related costs decreased, as those merger-integration costs associated with the First Bank of Delaware transaction, which closed in November 2012, were not present during the 1st quarter of 2014. Partially offsetting these cost reductions was the absence of the $570 thousand gain on curtailment of a nonqualified pension plan, which was recognized in the 1st quarter of 2013.
  • For the three months ended March 31, 2014, the Corporation recorded net loan and lease charge-offs of $495 thousand, as compared to $782 thousand for the same period in 2013. The provision for loan and lease losses for the three months ended March 31, 2014 was $750 thousand, as compared to $804 thousand for the same period in 2013.

Results of Operations – 1st Quarter 2014 Compared to the 4th Quarter 2013

  • Net income of $6.7 million for the three months ended March 31, 2014 increased $218 thousand, or 3.4%, from $6.5 million for the three months ended December 31, 2013.
  • Net interest income for the three months ended March 31, 2014 was $18.7 million, a decrease of $402 thousand, or 2.1%, from $19.1 million for the three months ended December 31, 2013. Although there was a $9.8 million increase in average interest-earning assets, partially offset by a $5.6 million increase in average interest-bearing liabilities between the periods, the decrease in net interest income between the periods was primarily a function of the difference in the number of days in each quarter, with the 1st quarter of 2014 having two fewer days than the 4th quarter of 2013.
  • The tax-equivalent net interest margin of 4.02% for the three months ended March 31, 2014 was a 1 basis point decrease from the 4.03% tax-equivalent net interest margin for the three months ended December 31, 2013. The slight decrease between periods resulted as a $9.8 million increase in average interest-earning assets was partially offset by a $5.6 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 decreased by 1 basis point, while the tax-equivalent rate paid on interest-bearing liabilities increased by 2 basis points.
  • Non-interest income for the three months ended March 31, 2014 decreased $1.1 million as compared to the three months ended December 31, 2013. Factors contributing to this decrease included a $747 thousand decrease in other operating income. During the 4th quarter of 2013, the Corporation recorded $618 thousand of income related to 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. Additionally, a decrease of $205 in gain on sale of residential mortgage loans occurred between the periods.
  • Non-interest expense for the three months ended March 31, 2014 decreased $1.8 million, to $18.9 million, as compared to $20.7 million for the three months ended December 31, 2013. The decrease between the periods was largely related to decreases of $1.4 million in salaries and employee benefits and $519 thousand in other operating expenses. The decrease in salaries and employee benefits was primarily related to lower levels of bonus accruals during the 1st quarter of 2014 as compared to the 4th quarter of 2013. In addition, better-than-expected returns on pension assets along with an increase in the discount rate used to calculate periodic pension costs helped reduce costs associated with the Corporation's retirement plans. The $519 thousand decrease in other operating expenses between the periods was largely related to a $334 thousand decrease in deferred compensation plan expense associated with changes in the value of Corporation stock and other investments held in certain deferred compensation plans. In addition, costs for outside help, primarily in the information technology area, decreased by $120 thousand during the three months ended March 31, 2014, as compared to the three months ended December 31, 2013.
  • Nonperforming loans and leases of $10.2 million as of March 31, 2014 were 0.65% of total portfolio loans and leases, as compared $10.5 million, or 0.68% of total portfolio loans and leases as of December 31, 2013. This slight decrease resulted as the Corporation recorded $1.0 million in payoffs and returns to performing status of previously nonperforming loans, substantially offset by $959 thousand in loans that became nonperforming during the 1st quarter of 2014. In addition, the Corporation added one residential property valued at $190 thousand to other real estate owned, as a result of the foreclosure of a nonperforming loan. For the three months ended March 31, 2014, the Corporation recorded net loan and lease charge-offs of $495 thousand, as compared to $324 thousand net loan and lease charge-offs for the three months ended December 31, 2013. The provision for loan and lease losses decreased slightly, to $750 thousand, for the three months ended March 31, 2014, as compared to $812 thousand for the three months ended December 31, 2013.

Financial Condition – March 31, 2014 Compared to December 31, 2013

  • Total portfolio loans and leases of $1.57 billion as of March 31, 2014 increased by $18.6 million from December 31, 2013 with commercial mortgages and commercial and industrial loans comprising the majority of the increase.
  • The allowance for loan and lease losses as of March 31, 2014 was $15.8 million, or 1.01% of portfolio loans as compared to $15.5 million, or 1.00% of portfolio loans and leases, as of December 31, 2013.
  • Total assets as of March 31, 2014 were $2.06 billion and remained relatively unchanged from December 31, 2013. The $18.6 million in loan growth between the dates was substantially funded with reduction of cash and cash flows from available for sale investment securities.
  • Deposits of $1.58 billion, as of March 31, 2014, decreased $11.8 million from December 31, 2013. The decrease was comprised of a $22.3 million decrease in non-interest-bearing deposits, partially offset by a $10.5 million increase in interest-bearing deposits between the dates. The balance of non-interest-bearing deposits remains strong, at 25.6% of total deposits, as of March 31, 2014.
  • The capital ratios for the Bank and the Corporation, as shown in the table at page 16 below, indicate levels well above the regulatory minimum to be considered "well capitalized." The tangible equity ratios for both the Bank and the Corporation have improved from their December 31, 2013 levels of 8.78% and 8.92%, to 9.18% and 9.23%, respectively, at March 31, 2014. These increases were primarily the result of the increase in retained earnings with a slight decrease in total assets.

1The Corporation believes the presentation of the above non-GAAP financial measure provides useful supplemental information that is essential to an investor's proper understanding of the results of operations of the Corporation. Management uses this non-GAAP financial measure in its analysis of the Corporation's performance. This non-GAAP disclosure should not be viewed as a substitute for the financial measure determined in accordance with GAAP, nor is it necessarily comparable to a non-GAAP performance measure that may be presented by other companies. A reconciliation of the GAAP measure to the non-GAAP measure is included in the table below.

EARNINGS CONFERENCE CALL

The Corporation will hold an earnings conference call at 4:30 PM EDT on Thursday, May 1, 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 AM EDT on Wednesday, May, 14, 2014. A recording of the earnings conference call may be obtained by calling 1-877-344-7529, referring to conference number 10043465.

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
March 31,
2014
December 31,
2013
September 30,
2013
June 30,
2013
March 31,
2013
Interest income $ 20,161 $ 20,525 $ 19,820 $ 19,217 $ 18,855
Interest expense 1,438 1,400 1,287 1,294 1,446
Net interest income 18,723 19,125 18,533 17,923 17,409
Provision for loan and lease losses 750 812 959 1,000 804
Net interest income after provision for loan and lease losses 17,973 18,313 17,574 16,923 16,605
Fees for wealth management services 8,913 9,106 8,635 9,094 8,349
Loan servicing and other fees 446 465 481 448 451
Service charges on deposits 601 638 627 596 584
Net gain on sale of residential mortgage loans 324 529 578 1,492 1,518
Net (loss) gain on sale of investment securities available for sale (4) (10) -- -- 2
Net loss on sale of other real estate owned -- (106) (1) (141) (52)
Bank owned life insurance income 81 88 72 85 113
Other operating income 778 1,525 995 1,369 825
Non-interest income 11,139 12,235 11,387 12,943 11,790
Salaries and wages 8,440 9,438 9,012 9,086 8,810
Employee benefits 1,979 2,399 1,896 2,212 2,325
Net gain on curtailment of nonqualified pension plan -- -- -- (120) (570)
Occupancy and bank premises 1,933 1,738 1,646 1,728 1,750
Furniture fixtures and equipment 983 1,017 920 1,221 819
Advertising 339 431 303 380 412
Net (recovery) impairment of mortgage servicing rights (8) (10) 33 (91) 71
Amortization of mortgage servicing rights 114 123 187 218 212
Amortization of intangible assets 637 655 657 660 661
FDIC insurance 272 259 271 275 258
Due diligence and merger-related expenses 264 155 328 688 714
Professional fees 593 581 636 664 575
Early extinguishment of debt - costs and premiums -- -- -- -- 347
Other operating expenses 3,353 3,872 3,434 3,603 3,851
Non-interest expense 18,899 20,658 19,323 20,524 20,235
Income before income taxes 10,213 9,890 9,638 9,342 8,160
Income tax expense 3,524 3,419 3,237 3,090 2,840
Net income $ 6,689 $ 6,471 $ 6,401 $ 6,252 $ 5,320
Per share data:
Weighted average shares outstanding 13,485,213 13,419,269 13,336,799 13,280,624 13,205,538
Dilutive common shares 304,828 308,674 275,343 227,150 230,413
Adjusted weighted average dilutive shares 13,790,041 13,727,943 13,612,142 13,507,774 13,435,951
Basic earnings per common share $0.50 $0.48 $0.48 $0.47 $0.40
Diluted earnings per common share $0.49 $0.47 $0.47 $0.46 $0.40
Dividend declared per share $0.18 $0.18 $0.17 $0.17 $0.17
Effective tax rate 34.5% 34.6% 33.6% 33.1% 34.8%
Reconciliation of Non-GAAP Measure to GAAP Measure
Net income (a GAAP measure) $ 6,689 $ 6,471 $ 6,401 $ 6,252 $ 5,320
add: tax-effected* due diligence and merger-related expenses 172 101 213 447 464
Net income excluding tax-effected* due diligence and merger-related expenses (a non-GAAP measure) 6,861 6,572 6,614 6,699 5,784
Basic earnings per common share excluding tax-effected* due diligence and merger-related expenses (a non-GAAP measure) $ 0.51 $ 0.49 $ 0.50 $ 0.50 $ 0.44
Diluted earnings per common share excluding tax-effected* due diligence and merger-related expenses (a non-GAAP measure) $ 0.50 $ 0.48 $ 0.49 $ 0.50 $ 0.43
* assumed tax rate of 35%
Bryn Mawr Bank Corporation
Consolidated Balance Sheets - (unaudited)
(dollars in thousands)
March 31,
2014
December 31,
2013
September 30,
2013
June 30,
2013
March 31,
2013
Assets
Interest-bearing deposits with banks $ 59,248 $ 67,618 $ 71,203 $ 95,903 $ 136,534
Investment securities - available for sale 272,599 285,808 319,917 322,961 327,799
Investment securities - trading 3,517 3,437 2,357 2,180 2,168
Loans held for sale 1,340 1,350 1,284 2,207 3,233
Portfolio loans:
Consumer 18,104 16,926 17,572 18,404 18,725
Commercial & industrial 334,295 328,459 303,259 296,073 293,171
Commercial mortgages 640,574 625,341 622,771 587,261 563,431
Construction 44,060 46,369 39,055 28,718 26,135
Residential mortgages 301,532 300,243 291,645 280,687 284,819
Home equity lines & loans 186,277 189,571 187,634 183,006 183,984
Leases 40,988 40,276 38,079 36,770 34,974
Total portfolio loans and leases 1,565,830 1,547,185 1,500,015 1,430,919 1,405,239
Earning assets 1,902,534 1,905,398 1,894,776 1,854,170 1,874,973
Cash and due from banks 14,696 13,453 24,958 14,208 12,013
Allowance for loan and lease losses (15,770) (15,515) (15,027) (14,444) (14,447)
Premises and equipment 32,473 31,796 31,436 30,947 31,072
Accrued interest receivable 5,687 5,728 5,703 6,097 6,168
Mortgage servicing rights 4,734 4,750 4,744 4,790 4,593
Goodwill 32,843 32,843 32,843 32,843 32,897
Other intangible assets 18,728 19,365 20,020 20,677 21,337
Bank owned life insurance 20,301 20,220 20,132 20,060 19,975
FHLB stock 11,911 11,654 12,590 13,028 10,663
Deferred income taxes 7,517 8,690 11,955 11,788 10,854
Other investments 4,392 4,437 4,337 4,378 4,347
Other assets 19,770 18,846 10,506 10,980 15,718
Total assets $ 2,059,816 $ 2,061,665 $ 2,058,973 $ 2,009,522 $ 2,030,163
Liabilities and shareholders' equity
Interest-bearing deposits:
Interest-bearing checking $ 269,409 $ 266,787 $ 244,826 $ 262,316 $ 263,820
Money market 556,076 544,310 548,011 551,750 588,478
Savings 141,979 135,240 137,431 136,307 135,124
Wholesale non-maturity deposits 42,704 42,937 57,195 30,315 32,879
Wholesale time deposits 34,104 34,639 23,127 12,139 11,325
Time deposits 130,983 140,794 145,119 161,146 171,575
Total interest-bearing deposits 1,175,255 1,164,707 1,155,709 1,153,973 1,203,201
Non-interest-bearing deposits 404,340 426,640 394,947 395,742 407,453
Total deposits 1,579,595 1,591,347 1,550,656 1,549,715 1,610,654
Long-term FHLB advances and other borrowings 214,640 205,644 191,645 152,642 148,636
Short-term borrowings 10,739 10,891 75,588 71,768 38,362
Other liabilities 19,365 23,885 23,323 22,929 22,343
Shareholders' equity 235,477 229,898 217,761 212,468 210,168
Total liabilities and shareholders' equity $ 2,059,816 $ 2,061,665 $ 2,058,973 $ 2,009,522 $ 2,030,163
Bryn Mawr Bank Corporation
Consolidated Quarterly Average Balance Sheets - (unaudited)
(dollars in thousands)
For The Three Months Ended
March 31,
2014
December 31,
2013
September 30,
2013
June 30,
2013
March 31,
2013
Assets
Interest-bearing deposits with banks $ 67,809 $ 56,569 $ 35,589 $ 59,981 $ 117,372
Investment securities - available for sale 281,572 310,183 324,418 325,729 323,247
Investment securities - trading 3,438 2,368 2,182 2,168 1,695
Loans held for sale 504 1,197 867 2,233 2,645
Portfolio loans and leases 1,549,161 1,522,408 1,463,492 1,425,836 1,401,038
Earning assets 1,902,484 1,892,725 1,826,548 1,815,947 1,845,997
Cash and due from banks 12,302 13,132 12,497 12,876 13,287
Allowance for loan and lease losses (15,761) (15,226) (14,653) (14,625) (14,693)
Premises and equipment 32,358 31,770 31,216 31,254 31,415
Goodwill 32,843 32,843 32,843 32,896 32,897
Other intangible assets 19,095 19,741 20,400 21,055 21,725
Bank owned life insurance 20,252 20,163 20,086 20,005 19,905
FHLB stock 11,915 12,242 12,809 10,430 10,544
Deferred income taxes 7,908 11,733 11,946 10,997 12,183
Other assets 29,940 22,288 21,904 25,296 21,294
Total assets $ 2,053,336 $ 2,041,411 $ 1,975,596 $ 1,966,131 $ 1,994,554
Liabilities and shareholders' equity
Interest-bearing deposits:
Interest-bearing checking $ 263,612 $ 248,722 $ 249,982 $ 263,842 $ 266,900
Money market 545,108 548,351 559,911 571,327 576,422
Savings 137,812 137,327 135,070 134,485 132,142
Wholesale non-maturity deposits 41,828 48,465 47,804 31,124 38,683
Wholesale time deposits 35,133 22,735 10,911 11,610 11,495
Time deposits 134,574 142,258 152,788 164,247 190,937
Total interest-bearing deposits 1,158,067 1,147,858 1,156,466 1,176,635 1,216,579
Non-interest bearing deposits 415,514 420,072 402,292 391,387 386,881
Total deposits 1,573,581 1,567,930 1,558,758 1,568,022 1,603,460
Long-term FHLB advances and other borrowings 212,405 204,780 163,818 150,578 148,699
Short-term borrowings 13,090 25,364 14,995 13,248 11,978
Other liabilities 22,546 23,401 24,904 23,617 26,123
Shareholders' equity 231,714 219,936 213,121 210,666 204,294
Total liabilities and shareholders' equity $ 2,053,336 $ 2,041,411 $ 1,975,596 $ 1,966,131 $ 1,994,554
Bryn Mawr Bank Corporation
Quarterly Average Balances and Tax-Equivalent Interest Income and Expense and Tax-Equivalent Yields - (unaudited)
For The Three Months Ended
March 31, 2014 December 31, 2013 September 30, 2013 June 30, 2013 March 31, 2013
(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 $ 67,809 $ 37 0.22 % $ 56,569 $ 27 0.19 % $ 35,589 $ 21 0.23 % $ 59,981 $ 41 0.27 % $ 117,372 $ 69 0.24 %
Investment securities - available for sale:
Taxable 245,006 972 1.61 % 271,152 1,127 1.65 % 284,558 988 1.38 % 287,287 846 1.18 % 289,097 889 1.25 %
Tax-exempt 36,566 153 1.70 % 39,031 159 1.62 % 39,860 159 1.58 % 38,442 146 1.52 % 34,150 125 1.48 %
Total investment securities - available for sale 281,572 1,125 1.62 % 310,183 1,286 1.64 % 324,418 1,147 1.40 % 325,729 992 1.22 % 323,247 1,014 1.27 %
Investment securities - trading 3,438 7 0.83 % 2,368 51 8.54 % 2,182 7 1.27 % 2,168 13 2.41 % 1,695 16 3.83 %
Loans and leases * 1,549,665 19,107 5.00 % 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 %
Total interest-earning assets 1,902,484 20,276 4.32 % 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 %
Cash and due from banks 12,302 13,132 12,497 12,876 13,287
Less allowance for loan and lease losses (15,761) (15,226) (14,653) (14,625) (14,693)
Other assets 154,311 150,780 151,204 151,933 149,963
Total assets $ 2,053,336 $ 2,041,411 $ 1,975,596 $ 1,966,131 $ 1,994,554
Liabilities:
Interest-bearing deposits:
Savings, NOW and market rate deposits $ 946,532 $ 405 0.17 % $ 934,400 $ 414 0.18 % $ 944,963 $ 419 0.18 % $ 969,654 $ 445 0.18 % $ 975,464 $ 479 0.20 %
Wholesale deposits 76,961 114 0.60 % 71,200 85 0.47 % 58,715 55 0.37 % 42,734 44 0.41 % 50,178 54 0.44 %
Time deposits 134,574 170 0.51 % 142,258 151 0.42 % 152,788 165 0.43 % 164,247 205 0.50 % 190,937 242 0.51 %
Total interest-bearing deposits 1,158,067 689 0.24 % 1,147,858 650 0.22 % 1,156,466 639 0.22 % 1,176,635 694 0.24 % 1,216,579 775 0.26 %
Borrowings:
Short-term borrowings 13,090 3 0.09 % 25,364 12 0.19 % 14,995 5 0.13 % 13,358 4 0.12 % 11,978 4 0.14 %
Long-term FHLB advances and other borrowings 212,405 746 1.42 % 204,780 738 1.43 % 163,818 643 1.56 % 150,468 596 1.59 % 148,699 667 1.82 %
Total borrowings 225,495 749 1.35 % 230,144 750 1.29 % 178,813 648 1.44 % 163,826 600 1.47 % 160,677 671 1.69 %
Total interest-bearing liabilities 1,383,562 1,438 0.42 % 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 %
Noninterest-bearing deposits 415,514 420,072 402,292 391,387 386,881
Other liabilities 22,546 23,401 24,904 23,617 26,123
Total noninterest-bearing liabilities 438,060 443,473 427,196 415,004 413,004
Total liabilities 1,821,622 1,821,475 1,762,475 1,755,465 1,790,260
Shareholders' equity 231,714 219,936 213,121 210,666 204,294
Total liabilities and shareholders' equity $ 2,053,336 $ 2,041,411 $ 1,975,596 $ 1,966,131 $ 1,994,554
Interest income to earning assets 4.32 % 4.33 % 4.33 % 4.27 % 4.16 %
Net interest spread 3.90 % 3.93 % 3.95 % 3.88 % 3.73 %
Effect of noninterest-bearing sources 0.12 % 0.10 % 0.10 % 0.10 % 0.12 %
Tax-equivalent net interest income/ margin on earning assets $ 18,838 4.02 % $ 19,241 4.03 % $ 18,643 4.05 % $ 18,029 3.98 % $ 17,507 3.85 %
Tax-equivalent adjustment $ 115 0.02 % $ 116 0.02 % $ 110 0.02 % $ 106 0.02 % $ 98 0.03 %
* 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
Consolidated Selected Financial Data - (unaudited)
(dollars in thousands, except per share data)
For The Three Months Ended or As Of
March 31,
2014
December 31,
2013
September 30,
2013
June 30,
2013
March 31,
2013
Asset Quality Data
Nonaccrual loans and leases $ 10,236 $ 10,530 $ 10,613 $ 10,489 $ 12,098
90 days or more past due loans, still accruing -- -- -- -- 728
Nonperforming loans and leases 10,236 10,530 10,613 10,489 12,826
Other real estate owned 1,040 855 1,253 1,205 545
Total nonperforming assets $ 11,276 $ 11,385 $ 11,866 $ 11,694 $ 13,371
Troubled debt restructurings included in nonperforming assets $ 2,698 $ 1,699 $ 2,628 $ 2,869 $ 3,686
Troubled debt restructurings in compliance with modified terms 6,667 7,277 8,947 8,157 7,438
Total troubled debt restructurings $ 9,365 $ 8,976 $ 11,575 $ 11,026 $ 11,124
Nonperforming loans and leases / portfolio loans & leases 0.65% 0.68% 0.71% 0.73% 0.91%
Nonperforming assets / total assets 0.55% 0.55% 0.58% 0.58% 0.66%
Net loan and lease charge-offs / average loans and leases (annualized) 0.13% 0.09% 0.10% 0.28% 0.22%
Delinquency rate* - Performing and nonperforming loans and leases 30 days or more past due 0.59% 0.65% 0.68% 0.73% 1.23%
Performing loans and leases - 30-89 days past due $ 1,815 $ 1,718 $ 1,227 $ 2,328 $ 4,115
Delinquency rate* - Performing loans and leases - 30-89 days past due 0.12% 0.11% 0.08% 0.16% 0.29%
* as a percentage of total loans and leases
Changes in the allowance for loan and lease losses:
Balance, beginning of period $ 15,515 $ 15,027 $ 14,444 $ 14,447 $ 14,425
Charge-offs (538) (484) (501) (1,164) (830)
Recoveries 43 160 125 161 48
Net charge-offs (495) (324) (376) (1,003) (782)
Provision for loan and lease losses 750 812 959 1,000 804
Balance, end of period $ 15,770 $ 15,515 $ 15,027 $ 14,444 $ 14,447
Allowance for loan and lease losses / loans and leases 1.01% 1.00% 1.00% 1.01% 1.03%
Allowance for loan and lease losses / nonperforming loans and leases 154.1% 147.3% 141.6% 137.7% 112.6%
For The Three Months Ended or As Of
March 31,
2014
December 31,
2013
September 30,
2013
June 30,
2013
March 31,
2013
Selected ratios (annualized):
Return on average assets 1.32% 1.26% 1.29% 1.28% 1.08%
Return on average shareholders' equity 11.71% 11.67% 11.92% 11.90% 10.56%
Return on average tangible equity (2) 15.10% 15.35% 15.89% 16.00% 14.42%
Tax-equivalent yield on loans and leases 5.00% 5.02% 5.08% 5.13% 5.16%
Tax-equivalent yield on interest-earning assets 4.32% 4.33% 4.33% 4.27% 4.16%
Cost of interest-bearing funds 0.42% 0.40% 0.38% 0.39% 0.43%
Tax-equivalent net interest margin 4.02% 4.03% 4.05% 3.98% 3.85%
Book value per share $ 17.24 $ 16.84 $ 16.07 $ 15.71 $ 15.57
Tangible book value per share $ 13.47 $ 13.02 $ 12.17 $ 11.75 $ 11.55
Shares outstanding at end of period 13,656,979 13,650,354 13,551,438 13,528,078 13,500,413
Selected data:
Mortgage loans originated $ 17,892 $ 37,190 $ 40,426 $ 55,066 $ 65,105
Residential mortgage loans sold - servicing retained $ 9,086 $ 12,523 $ 17,768 $ 46,209 $ 51,414
Residential mortgage loans sold - servicing released 152 531 -- 347 189
Total residential mortgage loans sold $ 9,238 $ 13,054 $ 17,768 $ 46,556 $ 51,603
Yield on loans sold 3.51% 4.05% 3.25% 3.20% 2.94%
Residential mortgage loans serviced for others $ 618,348 $ 628,879 $ 627,058 $ 623,498 $ 603,734
Total wealth assets under management, administration, supervision and brokerage (1) $ 7,361,977 $ 7,268,273 $ 7,082,926 $ 6,854,838 $ 6,987,974
(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.
Investment Portfolio - Available for Sale As of March 31, 2014 As of December 31, 2013
SECURITY DESCRIPTION Amortized
Cost
Fair
Value
Net
Unrealized
Gain / (Loss)
Amortized
Cost
Fair
Value
Net
Unrealized
Gain / (Loss)
U.S. Treasury securities $ 102 $ 100 $ (2) $ 102 $ 99 $ (3)
Obligations of the U.S. Government and agencies 65,368 64,485 (883) 71,097 69,568 (1,529)
State & political subdivisions 35,968 35,962 (6) 37,140 36,977 (163)
Mortgage-backed securities 113,415 114,447 1,032 119,044 119,363 319
Collateralized mortgage obligations 42,041 42,020 (21) 44,463 44,243 (220)
Other debt securities 1,900 1,900 -- 1,900 1,887 (13)
Bond mutual funds 11,456 11,492 36 11,456 11,457 1
Other investments 1,906 2,193 287 1,925 2,214 289
Total investment portfolio available for sale $ 272,156 $ 272,599 $ 443 $ 287,127 $ 285,808 $ (1,319)
Capital Ratios
Bryn Mawr Trust Company Regulatory Minimum
To Be
Well Capitalized
March 31,
2014
December 31,
2013
September 30,
2013
June 30,
2013
March 31,
2013
Tier I capital to risk weighted assets ("RWA") 6.00% 11.65% 11.40% 11.36% 11.58% 11.52%
Total (Tier II) capital to RWA 10.00% 12.63% 12.38% 12.33% 12.55% 12.51%
Tier I leverage ratio 5.00% 9.43% 9.14% 9.22% 9.07% 8.70%
Tangible equity ratio N/A 9.18% 8.78% 8.32% 8.29% 8.11%
Bryn Mawr Bank Corporation
Tier I capital to RWA 6.00% 11.71% 11.57% 11.33% 11.47% 11.33%
Total (Tier II) capital to RWA 10.00% 12.69% 12.55% 12.30% 12.44% 12.32%
Tier I leverage ratio 5.00% 9.50% 9.29% 9.22% 9.00% 8.58%
Tangible equity ratio N/A 9.23% 8.92% 8.30% 8.21% 7.98%

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