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Bryn Mawr Bank Corporation Reports Earnings of $6.5 Million, Declares Dividend of $0.19, Shareholders Approve Continental Merger

BRYN MAWR, Pa., Oct. 23, 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 September 30, 2014, as compared to net income of $6.4 million and diluted earnings per share of $0.47 for the same period in 2013. Net income for the three months ended September 30, 2014 included pre-tax due diligence and merger-related expenses of $775 thousand as compared to $328 thousand for the same period in 2013.

Significant factors contributing to the results for the three months ended September 30, 2014, as compared to the same period in 2013, included increases in net interest income and wealth management revenues, along with a decrease in provision for loan and lease losses between periods. These improvements were largely offset by an increase in the due diligence and merger-related expenses.

"We are pleased with our continued strong financial results," commented Ted Peters, Chairman and Chief Executive Officer. "Our credit quality remains excellent and loan growth continues to be healthy. We are looking forward to a solid fourth quarter and another record year of earnings," he added.

The pending merger with Continental Bank Holdings, Inc. ("CBH"), which has received the necessary regulatory approvals and which recently received shareholder approval from both institutions, is progressing as planned. Frank Leto, President and Chief Operating Officer commented, "As the CBH merger approaches its completion, we are very proud of all the long hours and hard work put in by the teams from both organizations and look forward to a successful integration of the institutions."

On October 23, 2014, the Board of Directors of the Corporation declared a quarterly dividend of $0.19 per share, payable December 1, 2014 to shareholders of record as of November 4, 2014.

SIGNIFICANT ITEMS OF NOTE

Results of Operations – 3rd Quarter 2014 Compared to 3rd Quarter 2013

  • Net income of $6.5 million for the three months ended September 30, 2014 increased $105 thousand, or 1.6%, from $6.4 million for the same period in 2013.
  • Net interest income for the three months ended September 30, 2014 was $19.2 million, an increase of $643 thousand, or 3.5%, from $18.5 million for the same period in 2013. The increase in net interest income between the periods was largely the result of a $165.9 million, or 11.3%, increase in average portfolio loans for the three months ended September 30, 2014 as compared to the same period in 2013. Partially offsetting this loan growth was a decrease in average available for sale investment securities of $58.9 million for the three months ended September 30, 2014 as compared to the same period in 2013. In addition to the decrease in the investment portfolio, average long-term borrowings increased by $71.3 million, or 43.5% for the three months ended September 30, 2014 as compared to the same period in 2013. Cash flows from available for sale investment securities and long-term FHLB advances were utilized to fund the loan growth between the periods.
  • The tax-equivalent net interest margin of 3.87% for the three months ended September 30, 2014 was an 18 basis point decrease from 4.05% for the same period in 2013. The decrease was primarily the result of a 27 basis point decline in yield on portfolio loans and a 5 basis point increase in rate paid on interest-bearing liabilities. The decline in yield on portfolio loans was related to the impact of fair value accounting for acquired loans, which increased the tax-equivalent yield on loans during the three months ended September 30, 2014 by 12 basis points, as compared to a 23 basis point increase for the same period in 2013. Lessening the impact of these unfavorable yield and rate changes was a $151.1 million increase in average interest-earning assets offset by a $99.4 million increase in interest-bearing liabilities for the three months ended September 30, 2014 as compared to the same period in 2013.
  • Non-interest income for the three months ended September 30, 2014 increased $156 thousand as compared to the same period in 2013. A $464 thousand increase in wealth management revenue during the three months ended September 30, 2014 was partially offset by decreases of $138 thousand in net gain on sale of residential mortgage loans and $112 thousand in other operating income. Wealth Management Division assets under management, administration, supervision and brokerage as of September 30, 2014 were $7.6 billion, an increase of $498 million, or 7.0%, from September 30, 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 September 30, 2014 increased $638 thousand, to $20.0 million, as compared to $19.3 million for the same period in 2013. Largely contributing to the increase was a $447
  • thousand increase in due diligence and merger-related expenses related to the pending completion of the merger with CBH. In addition to the increase in merger costs, increases in occupancy expenses were largely offset by decreases in employee benefits and other operating expenses.
  • Nonperforming loans and leases of $8.3 million as of September 30, 2014 were 0.51% of total portfolio loans and leases, as compared to $10.6 million, or 0.71% of total portfolio loans and leases as of September 30, 2013. For the three months ended September 30, 2014, the Corporation recorded net loan and lease charge-offs of $421 thousand, as compared to $376 thousand for the same period in 2013. The provision for loan and lease losses for the three month periods ended September 30, 2014 was $550 thousand, as compared to $959 thousand for the same period in 2013.

Results of Operations – 3rd Quarter 2014 Compared to the 2nd Quarter 2014

  • Net income of $6.5 million for the three months ended September 30, 2014 decreased $1.1 million, or 14.4%, from $7.6 million for the three months ended June 30, 2014.
  • Net interest income for the three months ended September 30, 2014 was $19.2 million, a decrease of $266 thousand, or 1.4%, from $19.4 million for the three months ended June 30, 2014. A $31.1 million increase in average interest-earning assets was partially offset by an $11.9 million increase in average interest-bearing liabilities between periods. However, the yield earned in interest-earning assets declined by 16 basis points between periods, which caused the decrease in net interest income.
  • The tax-equivalent net interest margin of 3.87% for the three months ended September 30, 2014 was a 16 basis point decrease from 4.03% for the three months ended June 30, 2014. The majority of this decline was related to the 19 basis point decrease in yield earned on portfolio loans. The decline in yield on portfolio loans was related to the impact of fair value accounting for acquired loans, which increased the tax-equivalent yield on loans during the three months ended September 30, 2014 by 12 basis points, as compared to a 24 basis point increase for the three months ended June 30, 2014.
  • Non-interest income for the three months ended September 30, 2014 decreased $1.2 million as compared to the three months ended June 30, 2014. Contributing to this decrease between periods was a $400 thousand decrease in wealth management revenue, a $269 thousand decrease in gain on sale of other real estate owned ("OREO") and a $375 thousand decrease in other operating income. Wealth management revenue during the three months ended June 30, 2014 included fees related to tax work performed during the federal tax filing period. This work was not repeated during the three months ended September 30, 2014. During the three months ended September 30, 2014, the Corporation recorded a net loss on sale of OREO of $49 thousand as compared to a net gain on sale of $220 thousand for the three months ended June 30, 2014. Other operating income was reduced by $86 thousand in losses recorded on trading securities during the three months ended September 30, 2014, as compared to a gain of $148 thousand recorded during three months ended June 30, 2014. The Corporation's trading portfolio is wholly comprised of assets held for certain deferred compensation trusts, whose changes in market value are offset by corresponding charges or credits to deferred compensation expense.
  • Non-interest expense for the three months ended September 30, 2014 decreased $665 thousand, to $20.0 million, as compared to $20.6 million for the three months ended June 30, 2014. The decrease between the periods was largely related to a decrease of $741 thousand in salaries and employee benefits. The decrease in salaries and employee benefits was related to lower levels of incentive and bonus accruals during the third quarter of 2014 as compared to the second quarter of 2014. In addition, severance compensation recorded during the second quarter of 2014 was not present during the third quarter of 2014. Partially offsetting this decrease was a $398 thousand increase in due diligence and merger-related costs associated with the pending merger with CBH.
  • Nonperforming loans and leases of $8.3 million as of September 30, 2014 were 0.51% of total portfolio loans and leases, as compared to $8.4 million, or 0.52% of total portfolio loans and leases as of June 30, 2014. For the three months ended September 30, 2014, the Corporation recorded net loan and lease charge-offs of $421 thousand, as compared to $200 thousand for the three months ended June 30, 2014. The provision for loan and lease losses for the three month periods ended September 30, 2014 was $550 thousand, as compared to a $100 thousand release from the allowance for loan and lease losses (the "Allowance") for the three months ended June 30, 2014, an increase of $650 thousand.

Financial Condition – September 30, 2014 Compared to December 31, 2013

  • Total portfolio loans and leases of $1.65 billion as of September 30, 2014 increased by $98.1 million, or 6.3%, from December 31, 2013, with commercial mortgages, commercial and industrial, and construction loans accounting for a majority of the increase.
  • The allowance for loan and lease losses as of September 30, 2014 was $15.6 million, or 0.95%, 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 September 30, 2014 were $2.12 billion, an increase of $62.2 million from December 31, 2013. Loan originations, partially offset by decreases in available for sale investment securities and interest-bearing deposits with other banks, accounted for the majority of this increase, with funding for loan originations provided by increased deposits and borrowings.
  • Deposits of $1.61 billion, as of September 30, 2014, increased $19.0 million from December 31, 2013. The increase was comprised of a $25.5 million increase in wholesale time deposits, an $11.6 million increase in non-interest-bearing deposits and a $13.1 million increase in savings and money market accounts. These increases were partially offset by decreases of $19.6 million and $9.9 million in retail time deposits and NOW accounts, respectively, between the December 31, 2013 and September 30, 2014.
  • 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." 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 9.21% and 9.58%, respectively, at September 30, 2014. These increases were primarily related to an increase in retained earnings, along with increases in unrealized gains on available for sale investment securities between December 31, 2013 and September 30, 2014.

EARNINGS CONFERENCE CALL

The Corporation will hold an earnings conference call at 8:30 AM EDT on Friday, October 24, 2014. Interested parties may participate by calling 1-877-504-8812. 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 Tuesday, November 4, 2014. A recording of the earnings conference call may be obtained by calling 1-877-344-7529, referring to conference number 10053617.

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/bmtc141024.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
September 30, June 30, March 31, December 31, September 30,
2014 2014 2014 2013 2013
Interest income $ 20,749 $ 20,941 $ 20,161 $ 20,525 $ 19,820
Interest expense 1,573 1,499 1,438 1,400 1,287
Net interest income 19,176 19,442 18,723 19,125 18,533
Provision for loan and lease losses 550 (100) 750 812 959
Net interest income after provision for loan and lease losses 18,626 19,542 17,973 18,313 17,574
Fees for wealth management services 9,099 9,499 8,913 9,106 8,635
Loan servicing and other fees 431 428 446 465 481
Service charges on deposits 663 656 601 638 627
Net gain on sale of residential mortgage loans 440 537 324 529 578
Net gain (loss) on sale of investment securities available for sale -- 85 (4) (10) --
Net (loss) gain on sale of other real estate owned (49) 220 -- (106) (1)
Bank owned life insurance income 76 74 81 88 72
Other operating income 883 1,258 778 1,525 995
Non-interest income 11,543 12,757 11,139 12,235 11,387
Salaries and wages 9,110 9,694 8,440 9,438 9,012
Employee benefits 1,652 1,809 1,979 2,399 1,896
Occupancy and bank premises 1,881 1,683 1,933 1,738 1,646
Furniture fixtures and equipment 1,078 1,089 983 1,017 920
Advertising 310 455 339 431 303
Net (recovery) impairment of mortgage servicing rights (3) (3) (8) (10) 33
Amortization of mortgage servicing rights 128 128 115 123 187
Amortization of intangible assets 633 636 637 655 657
FDIC insurance 265 242 271 259 271
Due diligence and merger-related expenses 775 377 264 155 328
Professional fees 701 914 593 581 636
Pennsylvania bank shares tax 412 412 368 274 139
Other operating expenses 3,019 3,190 2,985 3,598 3,295
Non-interest expense 19,961 20,626 18,899 20,658 19,323
Income before income taxes 10,208 11,673 10,213 9,890 9,638
Income tax expense 3,702 4,069 3,524 3,419 3,237
Net income $ 6,506 $ 7,604 $ 6,689 $ 6,471 $ 6,401
Per share data:
Weighted average shares outstanding 13,600,355 13,531,170 13,485,213 13,419,269 13,336,799
Dilutive common shares 272,516 304,998 304,828 308,674 275,343
Adjusted weighted average dilutive shares 13,872,871 13,836,168 13,790,041 13,727,943 13,612,142
Basic earnings per common share $0.48 $0.56 $0.50 $0.48 $0.48
Diluted earnings per common share $0.47 $0.55 $0.49 $0.47 $0.47
Dividend declared per share $0.19 $0.18 $0.18 $0.18 $0.17
Effective tax rate 36.3% 34.9% 34.5% 34.6% 33.6%
Supplemental Non-GAAP Performance Measures* (Includes Reconciliation of Non-GAAP to GAAP Performance Measures)
Net income (a GAAP measure) $ 6,506 $ 7,604 $ 6,689 $ 6,471 $ 6,401
add: tax-effected** due diligence and merger-related expenses 504 245 172 101 213
Net income excluding tax-effected** due diligence and merger-related expenses (a non-GAAP measure) 7,010 7,849 6,861 6,572 6,614
Basic earnings per common share excluding tax-effected** due diligence and merger-related expenses (a non-GAAP measure) $ 0.52 $ 0.58 $ 0.51 $ 0.49 $ 0.50
Diluted earnings per common share excluding tax-effected** due diligence and merger-related expenses (a non-GAAP measure) $ 0.51 $ 0.57 $ 0.50 $ 0.48 $ 0.49
*The 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
** assumed nominal tax rate of 35%
Bryn Mawr Bank Corporation
Consolidated Statements of Income - (unaudited)
(dollars in thousands, except per share data)
For The Nine Months Ended September 30,
2014 2013
Interest income $ 61,851 $ 57,892
Interest expense 4,510 4,027
Net interest income 57,341 53,865
Provision for loan and lease losses 1,200 2,763
Net interest income after provision for loan and lease losses 56,141 51,102
Fees for wealth management services 27,511 26,078
Loan servicing and other fees 1,305 1,380
Service charges on deposits 1,920 1,807
Net gain on sale of residential mortgage loans 1,301 3,588
Net gain on sale of investment securities available for sale 81 2
Net gain (loss) on sale of other real estate owned 171 (194)
Bank owned life insurance income 231 270
Other operating income 2,919 3,189
Non-interest income 35,439 36,120
Salaries and wages 27,244 26,908
Employee benefits 5,440 6,433
Net gain on curtailment of nonqualified pension plan -- (690)
Occupancy and bank premises 5,497 5,124
Furniture fixtures and equipment 3,150 2,960
Advertising 1,104 1,095
Net (recovery) impairment of mortgage servicing rights (14) 13
Amortization of mortgage servicing rights 371 617
Amortization of intangible assets 1,906 1,978
FDIC insurance 778 804
Due diligence and merger-related expenses 1,416 1,730
Professional fees 2,208 1,875
Early extinguishment of debt - costs and premiums -- 347
Pennsylvania bank shares tax 1,192 669
Other operating expenses 9,194 10,219
Non-interest expense 59,486 60,082
Income before income taxes 32,094 27,140
Income tax expense 11,295 9,167
Net income $ 20,799 $ 17,973
Per share data:
Weighted average shares outstanding 13,539,329 13,274,801
Dilutive common shares 294,114 244,302
Adjusted weighted average shares 13,833,443 13,519,103
Basic earnings per common share $1.54 $1.35
Diluted earnings per common share $1.50 $1.33
Dividend declared per share $0.55 $0.51
Effective tax rate 35.2% 33.8%
Supplemental Non-GAAP Performance Measures* (Includes Reconciliation of Non-GAAP to GAAP Performance Measures)
Net income (a GAAP measure) $ 20,799 $ 17,973
add: tax-effected** due diligence and merger-related expenses 1,435 1,219
Net income excluding tax-effected** due diligence and merger-related expenses (a non-GAAP measure) 22,234 19,192
Basic earnings per common share excluding tax-effected** due diligence and merger-related expenses (a non-GAAP measure) $ 1.64 $ 1.45
Diluted earnings per common share excluding tax-effected** due diligence and merger-related expenses (a non-GAAP measure) $ 1.61 $ 1.42
*The 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
** assumed nominal tax rate of 35%
Bryn Mawr Bank Corporation
Consolidated Balance Sheets - (unaudited)
(dollars in thousands)
September 30, June 30, March 31, December 31, September 30,
2014 2014 2014 2013 2013
Assets
Interest-bearing deposits with banks $ 56,253 $ 85,946 $ 59,248 $ 67,618 $ 71,203
Investment securities - available for sale 265,939 266,402 272,599 285,808 319,917
Investment securities - trading 3,803 3,597 3,517 3,437 2,357
Loans held for sale 1,375 1,631 1,340 1,350 1,284
Portfolio loans:
Consumer 16,810 18,907 18,104 16,926 17,572
Commercial & industrial 342,524 334,474 334,295 328,459 303,259
Commercial mortgages 683,558 666,924 640,574 625,341 622,771
Construction 59,923 55,051 44,060 46,369 39,055
Residential mortgages 314,127 310,491 301,532 300,243 291,645
Home equity lines & loans 183,314 185,593 186,277 189,571 187,634
Leases 44,982 44,102 40,988 40,276 38,079
Total portfolio loans and leases 1,645,238 1,615,542 1,565,830 1,547,185 1,500,015
Earning assets 1,972,608 1,973,118 1,902,534 1,905,398 1,894,776
Cash and due from banks 11,312 17,018 14,696 13,453 24,958
Allowance for loan and lease losses (15,599) (15,470) (15,770) (15,515) (15,027)
Premises and equipment 32,733 32,679 32,473 31,796 31,436
Accrued interest receivable 5,661 5,526 5,687 5,728 5,703
Mortgage servicing rights 4,796 4,760 4,734 4,750 4,744
Goodwill 32,843 32,843 32,843 32,843 32,843
Other intangible assets 17,459 18,092 18,728 19,365 20,020
Bank owned life insurance 20,451 20,375 20,301 20,220 20,132
FHLB stock 12,889 12,775 11,911 11,654 12,590
Deferred income taxes 5,786 5,984 7,517 8,690 11,955
Other investments 4,592 4,507 4,392 4,437 4,337
Other assets 18,351 19,018 19,770 18,846 10,506
Total assets $ 2,123,882 $ 2,131,225 $ 2,059,816 $ 2,061,665 $ 2,058,973
Liabilities and shareholders' equity
Interest-bearing deposits:
Interest-bearing checking $ 256,890 $ 263,247 $ 269,409 $ 266,787 $ 244,826
Money market 550,238 559,070 556,076 544,310 548,011
Savings 142,364 145,312 141,979 135,240 137,431
Wholesale non-maturity deposits 41,290 41,840 42,704 42,937 57,195
Wholesale time deposits 60,171 50,152 34,104 34,639 23,127
Time deposits 121,158 123,572 130,983 140,794 145,119
Total interest-bearing deposits 1,172,111 1,183,193 1,175,255 1,164,707 1,155,709
Non-interest-bearing deposits 438,221 436,739 404,340 426,640 394,947
Total deposits 1,610,332 1,619,932 1,579,595 1,591,347 1,550,656
Long-term FHLB advances and other borrowings 230,574 233,132 214,640 205,644 191,645
Short-term borrowings 13,980 13,320 10,739 10,891 75,588
Other liabilities 21,387 21,470 19,365 23,885 23,323
Shareholders' equity 247,609 243,371 235,477 229,898 217,761
Total liabilities and shareholders' equity $ 2,123,882 $ 2,131,225 $ 2,059,816 $ 2,061,665 $ 2,058,973
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,
2014 2014 2014 2013 2013
Assets
Interest-bearing deposits with banks $ 78,324 $ 70,775 $ 67,809 $ 56,569 $ 35,589
Investment securities - available for sale 265,491 271,830 281,572 310,183 324,418
Investment securities - trading 3,599 3,518 3,438 2,368 2,182
Loans held for sale 1,116 1,280 504 1,197 867
Portfolio loans and leases 1,629,102 1,599,104 1,549,161 1,522,408 1,463,492
Earning assets 1,977,632 1,946,507 1,902,484 1,892,725 1,826,548
Cash and due from banks 12,739 12,067 12,302 13,132 12,497
Allowance for loan and lease losses (15,672) (16,073) (15,761) (15,226) (14,653)
Premises and equipment 32,763 32,829 32,358 31,770 31,216
Goodwill 32,843 32,843 32,843 32,843 32,843
Other intangible assets 17,821 18,459 19,095 19,741 20,400
Bank owned life insurance 20,402 20,327 20,252 20,163 20,086
FHLB stock 12,864 12,663 11,915 12,242 12,809
Deferred income taxes 5,926 7,119 7,908 11,733 11,946
Other assets 30,491 29,750 29,940 22,288 21,904
Total assets $ 2,127,809 $ 2,096,491 $ 2,053,336 $ 2,041,411 $ 1,975,596
Liabilities and shareholders' equity
Interest-bearing deposits:
Interest-bearing checking $ 255,601 $ 264,087 $ 263,612 $ 248,722 $ 249,982
Money market 565,803 556,241 545,108 548,351 559,911
Savings 143,877 143,418 137,812 137,327 135,070
Wholesale non-maturity deposits 43,256 42,970 41,828 48,465 47,804
Wholesale time deposits 54,976 48,791 35,133 22,735 10,911
Time deposits 121,986 127,167 134,574 142,258 152,788
Total interest-bearing deposits 1,185,499 1,182,674 1,158,067 1,147,858 1,156,466
Non-interest bearing deposits 426,883 416,104 415,514 420,072 402,292
Total deposits 1,612,382 1,598,778 1,573,581 1,567,930 1,558,758
Long-term FHLB advances and other borrowings 235,091 222,851 212,405 204,780 163,818
Short-term borrowings 14,074 17,220 13,090 25,364 14,995
Other liabilities 22,298 19,368 22,546 23,401 24,904
Shareholders' equity 243,964 238,274 231,714 219,936 213,121
Total liabilities and shareholders' equity $ 2,127,809 $ 2,096,491 $ 2,053,336 $ 2,041,411 $ 1,975,596
Bryn Mawr Bank Corporation
Consolidated Year-to-Date Average Balance Sheets - (unaudited)
(dollars in thousands)
For The Nine Months Ended September 30,
2014 2013
Assets
Interest bearing deposits with banks $ 72,341 $ 70,681
Investment securities - available for sale 272,906 324,469
Investment securities - trading 3,519 2,017
Loans held for sale 969 1,909
Portfolio loans and leases 1,592,749 1,430,351
Earning assets 1,942,484 1,829,427
Cash and due from banks 12,371 12,884
Allowance for loan and lease losses (15,835) (14,657)
Premises and equipment 32,652 31,294
Goodwill 32,843 32,878
Intangible assets 18,454 21,055
Bank owned life insurance 20,327 19,999
FHLB stock 12,508 11,760
Deferred income taxes 6,977 11,708
Other assets 30,037 22,344
Total assets $ 2,092,818 $ 1,978,692
Liabilities and shareholders' equity
Interest-bearing deposits:
Interest-bearing checking $ 261,071 $ 260,180
Money market 555,793 569,159
Savings 141,724 133,910
Wholesale non-maturity deposits 42,690 39,238
Wholesale time deposits 46,373 11,337
Time deposits 127,863 169,184
Total interest-bearing deposits 1,175,514 1,183,008
Non-interest-bearing deposits 419,542 393,576
Total deposits 1,595,056 1,576,584
Long-term FHLB advances and other borrowings 223,532 154,386
Short-term borrowings 14,798 13,455
Other liabilities 21,403 24,874
Shareholders' equity 238,029 209,393
Total liabilities and shareholders' equity $ 2,092,818 $ 1,978,692
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, 2014 June 30, 2014 March 31, 2014 December 31, 2013 September 30, 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 $ 78,324 $ 46 0.23% $ 70,775 $ 44 0.25% $ 67,809 $ 37 0.22% $ 56,569 $ 27 0.19% $ 35,589 $ 21 0.23%
Investment securities - available for sale:
Taxable 230,457 884 1.52% 235,853 903 1.54% 245,006 972 1.61% 271,152 1,127 1.65% 284,558 988 1.38%
Tax-exempt 35,034 149 1.69% 35,977 151 1.68% 36,566 153 1.70% 39,031 159 1.62% 39,860 159 1.58%
Total investment securities - available for sale 265,491 1,033 1.54% 271,830 1,054 1.56% 281,572 1,125 1.62% 310,183 1,286 1.64% 324,418 1,147 1.40%
Investment securities - trading 3,599 9 0.99% 3,518 17 1.94% 3,438 7 0.83% 2,368 51 8.54% 2,182 7 1.27%
Loans and leases * 1,630,218 19,767 4.81% 1,600,384 19,936 5.00% 1,549,665 19,107 5.00% 1,523,605 19,277 5.02% 1,464,359 18,755 5.08%
Total interest-earning assets 1,977,632 20,855 4.18% 1,946,507 21,051 4.34% 1,902,484 20,276 4.32% 1,892,725 20,641 4.33% 1,826,548 19,930 4.33%
Cash and due from banks 12,739 12,067 12,302 13,132 12,497
Less allowance for loan and lease losses (15,672) (16,073) (15,761) (15,226) (14,653)
Other assets 153,110 153,990 154,311 150,780 151,204
Total assets $ 2,127,809 $ 2,096,491 $ 2,053,336 $ 2,041,411 $ 1,975,596
Liabilities:
Interest-bearing deposits:
Savings, NOW and market rate deposits $ 965,281 $ 430 0.18% $ 963,746 $ 420 0.17% $ 946,532 $ 405 0.17% $ 934,400 $ 414 0.18% $ 944,963 $ 419 0.18%
Wholesale deposits 98,232 175 0.71% 91,761 147 0.64% 76,961 114 0.60% 71,200 85 0.47% 58,715 55 0.37%
Time deposits 121,986 137 0.45% 127,167 146 0.46% 134,574 170 0.51% 142,258 151 0.42% 152,788 165 0.43%
Total interest-bearing deposits 1,185,499 742 0.25% 1,182,674 713 0.24% 1,158,067 689 0.24% 1,147,858 650 0.22% 1,156,466 639 0.22%
Borrowings:
Short-term borrowings 14,074 3 0.08% 17,220 5 0.12% 13,090 3 0.09% 25,364 12 0.19% 14,995 5 0.13%
Long-term FHLB advances and other borrowings 235,091 828 1.40% 222,851 781 1.41% 212,405 746 1.42% 204,780 738 1.43% 163,818 643 1.56%
Total borrowings 249,165 831 1.32% 240,071 786 1.31% 225,495 749 1.35% 230,144 750 1.29% 178,813 648 1.44%
Total interest-bearing liabilities 1,434,664 1,573 0.43% 1,422,745 1,499 0.42% 1,383,562 1,438 0.42% 1,378,002 1,400 0.40% 1,335,279 1,287 0.38%
Noninterest-bearing deposits 426,883 416,104 415,514 420,072 402,292
Other liabilities 22,298 19,368 22,546 23,401 24,904
Total noninterest-bearing liabilities 449,181 435,472 438,060 443,473 427,196
Total liabilities 1,883,845 1,858,217 1,821,622 1,821,475 1,762,475
Shareholders' equity 243,964 238,274 231,714 219,936 213,121
Total liabilities and shareholders' equity $ 2,127,809 $ 2,096,491 $ 2,053,336 $ 2,041,411 $ 1,975,596
Interest income to earning assets 4.18% 4.34% 4.32% 4.33% 4.33%
Net interest spread 3.75% 3.92% 3.90% 3.93% 3.95%
Effect of noninterest-bearing sources 0.12% 0.11% 0.12% 0.10% 0.10%
Tax-equivalent net interest income/ margin on earning assets $ 19,282 3.87% $ 19,552 4.03% $ 18,838 4.02% $ 19,241 4.03% $ 18,643 4.05%
Tax-equivalent adjustment $ 106 0.02% $ 110 0.02% $ 115 0.02% $ 116 0.02% $ 110 0.02%
Supplemental Information Regarding Accretion of Fair Value Marks
Accretion of fair value marks on loans $ 516 $ 941 $ 761 $ 879 $ 860
Accretion of fair value marks on time deposits 6 6 7 49 71
Accretion of fair value marks on borrowings 30 30 30 30 30
Net interest income from fair value marks $ 552 $ 977 $ 798 $ 958 $ 961
Effect of fair value mark accretion on tax-equivalent net interest margin 0.11% 0.20% 0.17% 0.20% 0.21%
* 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,
2014 2013
(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 $ 72,341 127 0.23% $ 70,681 131 0.25%
Investment securities available for sale:
Taxable 237,053 2,759 1.56% 286,964 2,721 1.27%
Tax-exempt 35,853 453 1.69% 37,505 429 1.53%
Investment securities - available for sale 272,906 3,212 1.57% 324,469 3,150 1.30%
Investment securities - trading 3,519 33 1.25% 2,017 23 1.52%
Loans and leases * 1,593,718 58,810 4.93% 1,432,260 54,902 5.13%
Total interest earning assets 1,942,484 62,182 4.28% 1,829,427 58,206 4.25%
Cash and due from banks 12,371 12,884
Less allowance for loan and lease losses (15,835) (14,657)
Other assets 153,798 151,038
Total assets $ 2,092,818 $ 1,978,692
Liabilities:
Savings,NOW and market rate deposits $ 958,588 $ 1,254 0.17% $ 963,249 $ 1,343 0.19%
Wholesale deposits 89,063 437 0.66% 50,575 153 0.40%
Time deposits 127,863 453 0.47% 169,184 613 0.48%
Total interest-bearing deposits $ 1,175,514 2,144 0.24% $ 1,183,008 2,109 0.24%
Short-term borrowings 14,798 12 0.11% 154,386 1,906 1.65%
Long-term FHLB advances and other borrowings 223,532 2,354 1.41% 13,455 12 0.12%
Total Borrowings 238,330 2,366 1.33% 167,841 1,918 1.53%
Total interest-bearing liabilities 1,413,844 4,510 0.43% 1,350,849 4,027 0.40%
Noninterest-bearing deposits 419,542 393,576
Other liabilities 21,403 24,874
Total noninterest-bearing liabilities 440,945 418,450
Total liabilities 1,854,789 1,769,299
Shareholders' equity 238,029 209,393
Total liabilities and shareholders' equity $ 2,092,818 $ 1,978,692
Interest income to earning assets 4.28% 4.25%
Net interest spread 3.85% 3.85%
Effect of noninterest-bearing sources 0.12% 0.11%
Tax-equivalent net interest income/ margin on earning assets $ 57,672 3.97% $ 54,179 3.96%
Tax-equivalent adjustment $ 331 0.02% $ 314 0.02%
Supplemental Information Regarding Accretion of Fair Value Marks
Accretion of fair value marks on loans $ 2,218 $ 2,185
Accretion of fair value marks on time deposits 19 300
Accretion of fair value marks on borrowings 91 120
Net interest income from fair value marks $ 2,328 $ 2,605
Effect of fair value mark accretion on tax-equivalent net interest margin 0.16% 0.19%
* 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 lease 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
September 30, June 30, March 31, December 31, September 30,
2014 2014 2014 2013 2013
Asset Quality Data
Nonaccrual loans and leases $ 8,336 $ 8,388 $ 10,236 $ 10,530 $ 10,613
90 days or more past due loans, still accruing -- -- -- -- --
Nonperforming loans and leases 8,336 8,388 10,236 10,530 10,613
Other real estate owned 894 853 1,040 855 1,253
Total nonperforming assets $ 9,230 $ 9,241 $ 11,276 $ 11,385 $ 11,866
Troubled debt restructurings included in nonperforming assets $ 1,725 $ 1,597 $ 2,698 $ 1,699 $ 2,628
Troubled debt restructurings in compliance with modified terms 6,913 7,487 6,667 7,277 8,947
Total troubled debt restructurings $ 8,638 $ 9,084 $ 9,365 $ 8,976 $ 11,575
Nonperforming loans and leases / portfolio loans & leases 0.51% 0.52% 0.65% 0.68% 0.71%
Nonperforming assets / total assets 0.43% 0.43% 0.55% 0.55% 0.58%
Net loan and lease charge-offs / average loans and leases (annualized) 0.10% 0.05% 0.13% 0.09% 0.10%
Delinquency rate* - Performing and nonperforming loans and leases 30 days or more past due 0.48% 0.64% 0.59% 0.65% 0.68%
Performing loans and leases - 30-89 days past due $ 1,739 $ 3,743 $ 1,815 $ 1,718 $ 1,227
Delinquency rate* - Performing loans and leases - 30-89 days past due 0.11% 0.23% 0.12% 0.11% 0.08%
* as a percentage of total loans and leases
Changes in the allowance for loan and lease losses:
Balance, beginning of period $ 15,470 $ 15,770 $ 15,515 $ 15,027 $ 14,444
Charge-offs (493) (304) (538) (484) (501)
Recoveries 72 104 43 160 125
Net charge-offs (421) (200) (495) (324) (376)
Provision for loan and lease losses 550 (100) 750 812 959
Balance, end of period $ 15,599 $ 15,470 $ 15,770 $ 15,515 $ 15,027
Allowance for loan and lease losses / loans and leases 0.95% 0.96% 1.01% 1.00% 1.00%
Allowance for loan and lease losses / nonperforming loans and leases 187.1% 184.4% 154.1% 147.3% 141.6%
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,
2014 2014 2014 2013 2013
Selected ratios (annualized):
Return on average assets 1.21% 1.45% 1.32% 1.26% 1.29%
Return on average shareholders' equity 10.58% 12.80% 11.71% 11.67% 11.92%
Return on average tangible equity (2) 13.35% 16.31% 15.10% 15.35% 15.89%
Tax-equivalent yield on loans and leases 4.81% 5.00% 5.00% 5.02% 5.08%
Tax-equivalent yield on interest-earning assets 4.18% 4.34% 4.32% 4.33% 4.33%
Cost of interest-bearing funds 0.43% 0.42% 0.42% 0.40% 0.38%
Tax-equivalent net interest margin 3.87% 4.03% 4.02% 4.03% 4.05%
Book value per share $ 18.03 $ 17.74 $ 17.24 $ 16.84 $ 16.07
Tangible book value per share $ 14.37 $ 14.03 $ 13.47 $ 13.02 $ 12.17
Shares outstanding at end of period 13,731,276 13,719,337 13,656,979 13,650,354 13,551,438
Selected data:
Mortgage loans originated $ 29,861 $ 39,575 $ 17,892 $ 37,190 $ 40,426
Residential mortgage loans sold - servicing retained $ 16,237 $ 15,154 $ 9,086 $ 12,523 $ 17,768
Residential mortgage loans sold - servicing released 539 -- 152 531 --
Total residential mortgage loans sold $ 16,776 $ 15,154 $ 9,238 $ 13,054 $ 17,768
Yield on residential mortgage loans sold 2.62% 3.54% 3.51% 4.05% 3.25%
Loans serviced for others (includes residential mortgage, commercial mortgage and commercial & industrial) $ 624,598 $ 622,808 $ 618,348 $ 628,879 $ 627,058
Total wealth assets under management, administration, supervision and brokerage (1) $ 7,580,779 $ 7,569,842 $ 7,361,977 $ 7,268,273 $ 7,082,926
(1) Brokerage assets represent assets held at a registered broker dealer under a clearing agreement.
(2) Average tangible equity equals average shareholders' equity minus average goodwill and average other intangible assets.
For The Nine Months Ended September 30,
2014 2013
Selected ratios (annualized):
Return on average assets 1.33% 1.21%
Return on average shareholders' equity 11.68% 11.48%
Return on average tangible equity (1) 14.89% 15.46%
Tax-equivalent yield on loans and leases 4.93% 5.13%
Tax-equivalent yield on interest-earning assets 4.28% 4.25%
Cost of interest-bearing liabilities 0.43% 0.40%
Tax-equivalent net interest margin 3.97% 3.96%
Selected data:
Residential mortgage loans originated $ 87,328 $ 160,597
Residential mortgage loans sold - servicing retained $ 40,477 $ 115,391
Residential mortgage loans sold - servicing released 691 536
Total residential mortgage loans sold $ 41,168 $ 115,927
(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, 2014 As of December 31, 2013
Net Net
Amortized Fair Unrealized Amortized Fair Unrealized
SECURITY DESCRIPTION Cost Value Gain / (Loss) Cost Value Gain / (Loss)
U.S. Treasury securities $ 102 $ 100 $ (2) $ 102 $ 99 $ (3)
Obligations of the U.S. Government and agencies 71,443 71,110 (333) 71,097 69,568 (1,529)
State & political subdivisions 33,555 33,695 140 37,140 36,977 (163)
Mortgage-backed securities 104,670 106,223 1,553 119,044 119,363 319
Collateralized mortgage obligations 37,071 37,110 39 44,463 44,243 (220)
Other debt securities 1,900 1,900 -- 1,900 1,887 (13)
Bond mutual funds 11,956 12,029 73 11,456 11,457 1
Other investments 3,527 3,772 245 1,925 2,214 289
Total investment portfolio available for sale $ 264,224 $ 265,939 $ 1,715 $ 287,127 $ 285,808 $ (1,319)
Capital Ratios
Regulatory Minimum
To Be September 30, June 30, March 31, December 31, September 30,
Bryn Mawr Trust Company Well Capitalized 2014 2014 2014 2013 2013
Tier I capital to risk weighted assets ("RWA") 6.00% 11.60% 11.68% 11.65% 11.40% 11.36%
Total (Tier II) capital to RWA 10.00% 12.54% 12.62% 12.63% 12.38% 12.33%
Tier I leverage ratio 5.00% 9.39% 9.51% 9.43% 9.14% 9.22%
Tangible equity ratio N/A 9.21% 9.18% 9.18% 8.78% 8.32%
Bryn Mawr Bank Corporation
Tier I capital to RWA 6.00% 12.05% 11.85% 11.71% 11.57% 11.33%
Total (Tier II) capital to RWA 10.00% 12.99% 12.79% 12.69% 12.55% 12.30%
Tier I leverage ratio 5.00% 9.77% 9.67% 9.50% 9.29% 9.22%
Tangible equity ratio N/A 9.58% 9.32% 9.23% 8.92% 8.30%

CONTACT: Ted Peters, Chairman, CEO 610-581-4800 Frank Leto, President, COO 610-581-4730 Duncan Smith, CFO 610-526-2466Source:Bryn Mawr Bank Corporation