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Bryn Mawr Bank Corporation Reports Record Earnings of $27.8 Million for 2014, Record Wealth Assets of $7.7 Billion, Declares Dividend of $0.19

BRYN MAWR, Pa., Jan. 22, 2015 (GLOBE NEWSWIRE) -- Bryn Mawr Bank Corporation (Nasdaq:BMTC), (the "Corporation"), parent of The Bryn Mawr Trust Company (the "Bank"), today reported net income of $7.0 million and diluted earnings per share of $0.51 for the three months ended December 31, 2014, as compared to net income of $6.5 million and diluted earnings per share of $0.47 for the same period in 2013. Net income for the three months ended December 31, 2014 included pre-tax due diligence and merger-related expenses of $957 thousand as compared to $155 thousand for the same period in 2013.

Net income for the twelve months ended December 31, 2014 was $27.8 million, or $2.01 per diluted share, as compared to $24.4 million, or $1.80 per diluted share, for the same period in 2013. Net income for the twelve months ended December 31, 2014 included pre-tax due diligence and merger-related expenses of $2.4 million as compared to $1.9 million for the same period in 2013.

Significant factors contributing to the results for the three months ended December 31, 2014, as compared to the same period in 2013, included a decrease in provision for loan losses and increases in the net gain on sale of available for sale investment securities, net interest income and wealth management revenue between the periods. These improvements were offset by increases in due diligence and merger-related expenses, salaries and wages and furniture, fixtures and equipment expense related to system upgrades.

"We are very pleased to close out the year with another strong quarter," commented Frank Leto, President and Chief Executive Officer. "As we look forward to 2015, with the many challenges ahead, we are confident that the combination of a strong wealth management division, experienced lending staff, excellent credit quality and our recently expanded branch network will enable us to continue to produce strong results," Mr. Leto continued.

The previously announced merger with Continental Bank Holdings, Inc. ("CBH") was completed on January 1, 2015. Mr. Leto noted, "As a result of the thorough planning and preparation conducted in the months leading up to the CBH merger, the transaction closed on schedule and we are now poised to take advantage of the opportunities that our expanded presence in Montgomery County and our new presence in the City of Philadelphia provide."

On January 22, 2015, the Board of Directors of the Corporation declared a quarterly dividend of $0.19 per share, payable March 1, 2015 to shareholders of record as of February 3, 2015.

SIGNIFICANT ITEMS OF NOTE

Results of Operations – 4th Quarter 2014 Compared to 4th Quarter 2013

  • Net income of $7.0 million for the three months ended December 31, 2014 increased $573 thousand, or 8.9%, from $6.5 million for the same period in 2013.
  • Net interest income for the three months ended December 31, 2014 was $19.5 million, an increase of $362 thousand, or 1.9%, from $19.1 million for the same period in 2013. The increase in net interest income between the periods was largely the result of a $131.8 million, or 8.7%, increase in average portfolio loans for the three months ended December 31, 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 $57.8 million for the three months ended December 31, 2014 as compared to the same period in 2013. In addition to the decrease in the investment portfolio, average long-term borrowings increased by $33.1 million, or 16.1%, and average interest-bearing deposits increased $58.5 million, or 5.1%, for the three months ended December 31, 2014 as compared to the same period in 2013.
  • The tax-equivalent net interest margin of 3.84% for the three months ended December 31, 2014 was a 19 basis point decrease from 4.03% for the same period in 2013. The decrease was primarily the result of a 23 basis point decline in yield on portfolio loans and a 3 basis point increase in rate paid on interest-bearing liabilities. The decline in yield on portfolio loans was partially related to the impact of fair value accounting for acquired loans which increased the tax-equivalent yield on loans during the three months ended December 31, 2014 by 10 basis points, as compared to an 18 basis point increase for the same period in 2013. Lessening the impact of these unfavorable yield and rate changes was a $134.0 million increase in average interest-earning assets offset by an $85.6 million increase in average interest-bearing liabilities for the three months ended December 31, 2014 as compared to the same period in 2013.
  • Non-interest income for the three months ended December 31, 2014 increased $648 thousand as compared to the same period in 2013. Largely responsible for this increase was the $390 thousand gain on sale of available for sale investment securities for the three months ended December 31, 2014, as compared to $10 thousand loss for the same period in 2013. The increase in gain on sale in available for sale investment securities resulted from the sale of mortgage backed securities in order to shorten the duration of the Corporation's investment portfolio in anticipation of the addition of a longer-duration portfolio from the CBH merger. In addition, revenue from the Wealth Management Division remains strong, with a $157 thousand increase for the fourth quarter of 2014 as compared to the same period in 2013. Wealth Management Division assets under management, administration, supervision and brokerage as of December 31, 2014 were $7.7 billion, an increase of $432 million, or 5.9%, from December 31, 2013. This increase was driven by organic growth as a result of the division's strategic initiatives and other new business, along with some market appreciation.
  • Non-interest expense for the three months ended December 31, 2014 increased $1.3 million, to $21.9 million, as compared to $20.7 million for the same period in 2013. Largely contributing to the increase was an $802 thousand increase in due diligence and merger-related expenses related to both the CBH merger and the October 1, 2014 acquisition of Powers Craft Parker and Beard ("PCPB"). In addition to the increase in merger costs, furniture, fixtures and equipment costs increased by $341 thousand for the three months ended December 31, 2014 as compared to the same period in 2013, as several infrastructure improvement projects were completed and began amortizing. Also, salaries and wages increased by $431 thousand, largely related to the addition of the PCPB staff.
  • Nonperforming loans and leases of $10.1 million as of December 31, 2014 were 0.61% of total portfolio loans and leases, as compared to $10.5 million, or 0.68% of total portfolio loans and leases as of December 31, 2013. For the three months ended December 31, 2014, the Corporation recorded net loan and lease charge-offs of $697 thousand, as compared to $324 thousand for the same period in 2013. The provision for loan and lease losses (the "Provision") for the three months ended December 31, 2014 was a release of $316 thousand, as compared to a Provision of $812 thousand for the same period in 2013.

Results of Operations – 4th Quarter 2014 Compared to 3rd Quarter 2014

  • Net income of $7.0 million for the three months ended December 31, 2014 increased $538 thousand, or 8.3%, from $6.5 million for the three months ended September 30, 2014.
  • Net interest income for the three months ended December 31, 2014 was $19.5 million, an increase of $311 thousand, or 1.6%, from $19.2 million for the three months ended September 30, 2014. The tax-equivalent yield earned on interest-earning assets declined by 4 basis points between periods, however a $49.1 million increase in average interest-earning assets partially offset by a $28.9 million increase in average interest-bearing liabilities between periods resulted in the increase in net interest income.
  • The tax-equivalent net interest margin of 3.84% for the three months ended December 31, 2014 was a 3 basis point decrease from 3.87% for the three months ended September 30, 2014. The decrease was primarily related to the 2 basis point decrease in yield earned on portfolio loans.
  • Non-interest income for the three months ended December 31, 2014 increased $1.3 million as compared to the three months ended September 30, 2014. The increase was comprised of increases of $680 thousand in other operating income, $390 thousand in gain on sale of available for sale investment securities and $164 thousand in wealth management revenue. The increase in other operating income was related to insurance commissions generated by PCPB, the insurance subsidiary acquired by the Corporation on October 1, 2014. The increase in gain on sale of available for sale investment securities resulted from the sale of mortgage backed securities in order to shorten the duration of the Corporation's investment portfolio in anticipation of the addition of a longer-duration portfolio from the CBH merger. The increase in revenue from wealth management services was driven by organic growth as a result of the division's strategic initiatives and other new business, along with some market appreciation.
  • Non-interest expense for the three months ended December 31, 2014 increased $2.0 million, to $21.9 million, as compared to $19.9 million for the three months ended September 30, 2014. The increase between the periods was partially related to an increase of $1.0 million in salaries and employee benefits. The increase in salaries and employee benefits was related to the addition of the PCPB staff, which joined the Corporation on October 1, 2014, as well as year-end accruals of incentives and bonuses. Furniture, fixtures and equipment expense increased by $280 thousand as several infrastructure improvement projects were completed and began amortizing during the fourth quarter of 2014. Due diligence and merger-related expenses increased by $182 thousand related to the CBH and PCPB transactions and charitable contributions increased by $192 thousand for the three months ended December 31, 2014 as compared to the three months ended September 30, 2014.
  • Nonperforming loans and leases of $10.1 million as of December 31, 2014 were 0.61% of total portfolio loans and leases, as compared to $8.3 million, or 0.51% of total portfolio loans and leases as of September 30, 2014. For the three months ended December 31, 2014, the Corporation recorded net loan and lease charge-offs of $697 thousand, as compared to $421 thousand for the three months ended September 30, 2014. The Provision for the three months ended December 31, 2014 was a release of $316 thousand, as compared to a Provision of $550 thousand for the three months ended September 30, 2014, a decrease of $866 thousand.

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

  • Total portfolio loans and leases of $1.65 billion as of December 31, 2014 increased by $105.1 million, or 6.8%, from December 31, 2013, with residential mortgages, commercial mortgages, and construction loans accounting for a majority of the increase.
  • The allowance for loan and lease losses (the "Allowance") as of December 31, 2014 was $14.6 million, or 0.88% of portfolio loans as compared to $15.5 million, or 1.00% of portfolio loans and leases, as of December 31, 2013. The decrease in Allowance as a percentage of loans was the result of partial charge-offs of impaired loans which had previously been specifically provided for, as well as improving credit quality metrics and positive economic indicators.
  • Total assets as of December 31, 2014 were $2.25 billion, an increase of $184.8 million from December 31, 2013. Increases in loan balances and interest-bearing deposits with other banks, partially offset by decreases in available for sale investment securities, accounted for the majority of this increase, with funding for loan originations provided by increased deposits and borrowings.
  • Deposits of $1.69 billion, as of December 31, 2014, increased $96.7 million from December 31, 2013. The increase was comprised of a $38.8 million increase in wholesale time deposits, a $23.8 million increase in wholesale non-maturity deposits, a $20.3 million increase in non-interest-bearing deposits and a $36.2 million increase in other core deposits. These increases were partially offset by decreases of $22.4 million in retail time deposits between December 31, 2013 and December 31, 2014.
  • The capital ratios for the Bank and the Corporation, as shown in the attached tables, indicate levels well above the regulatory minimum to be considered "well capitalized." The tangible equity ratios for both the Bank and the Corporation have decreased from their December 31, 2013 levels of 8.78% and 8.92%, to 8.19% and 8.61%, respectively, at December 31, 2014. These decreases were primarily related to an increase in other comprehensive losses in the Corporation's pension plans which were partially offset by increases in retained earnings and unrealized gains on available for sale investment securities.

EARNINGS CONFERENCE CALL

The Corporation will hold an earnings conference call at 8:30 a.m. EDT on Friday, January 23, 2015. Interested parties may participate by dialing (toll-free) 1-877-504-8812 (international (toll) 1-412-902-6656). A taped replay of the conference call will be available one hour after the conclusion of the call and will remain available through February 6, 2015. The taped replay may be accessed by dialing (toll-free) 1-877-344-7529 (international (toll) 1-412-317-0088) and the conference number is 10057169.

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/bmtc150123.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, that the integration of CBH's business with the Corporation may take longer than anticipated or be more costly to complete and that the anticipated benefits, including any anticipated cost savings or strategic gains may be significantly harder to achieve or take longer than anticipated or may not be achieved, our need for capital, our ability to control operating costs and expenses, and to manage loan and lease delinquency rates; the credit risks of lending activities and overall quality of the composition of our loan, lease and securities portfolio; the impact of economic conditions, consumer and business spending habits, and real estate market conditions on our business and in our market area; changes in the levels of general interest rates, deposit interest rates, or net interest margin and funding sources; changes in banking regulations and policies and the possibility that any banking agency approvals we might require for certain activities will not be obtained in a timely manner or at all or will be conditioned in a manner that would impair our ability to implement our business plans; changes in accounting policies and practices; the inability of key third-party providers to perform their obligations to us; our ability to attract and retain key personnel; competition in our marketplace; war or terrorist activities; material differences in the actual financial results, cost savings and revenue enhancements associated with our acquisitions; and other factors as described in our securities filings. All forward-looking statements and information set forth herein are based on management's current beliefs and assumptions as of the date hereof and speak only as of the date they are made. The Corporation does not undertake to update forward-looking statements.

For a complete discussion of the assumptions, risks and uncertainties related to our business, you are encouraged to review our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K, as well as any changes in risk factors that we may identify in our quarterly or other reports filed with the SEC.

Bryn Mawr Bank Corporation
Consolidated Statements of Income - (unaudited)
(dollars in thousands, except per share data)
For The Three Months Ended
December 31, September 30, June 30, March 31, December 31,
2014 2014 2014 2014 2013
Interest income $ 21,055 $ 20,749 $ 20,941 $ 20,161 $ 20,525
Interest expense 1,568 1,573 1,499 1,438 1,400
Net interest income 19,487 19,176 19,442 18,723 19,125
Provision for loan and lease losses (316) 550 (100) 750 812
Net interest income after provision for loan and lease losses 19,803 18,626 19,542 17,973 18,313
Fees for wealth management services 9,263 9,099 9,499 8,913 9,106
Loan servicing and other fees 450 431 428 446 465
Service charges on deposits 658 663 656 601 638
Net gain on sale of residential mortgage loans 471 440 537 324 529
Net gain (loss) on sale of investment securities available for sale 390 -- 85 (4) (10)
Net gain (loss) on sale of other real estate owned 4 (49) 220 -- (106)
Bank owned life insurance income 84 76 74 81 88
Other operating income 1,563 883 1,258 778 1,525
Non-interest income 12,883 11,543 12,757 11,139 12,235
Salaries and wages 9,869 9,110 9,694 8,440 9,438
Employee benefits 1,900 1,652 1,809 1,979 2,399
Occupancy and bank premises 1,808 1,881 1,683 1,933 1,738
Furniture fixtures and equipment 1,358 1,078 1,089 983 1,017
Advertising 400 310 455 339 431
Net impairment (recovery) of mortgage servicing rights 70 (3) (3) (8) (10)
Amortization of mortgage servicing rights 105 128 128 115 123
Amortization of intangible assets 753 633 636 637 655
FDIC insurance 268 265 242 271 259
Due diligence and merger-related expenses 957 775 377 264 155
Professional fees 809 701 914 593 581
Pennsylvania bank shares tax 64 412 412 368 274
Other operating expenses 3,571 3,019 3,190 2,985 3,598
Non-interest expense 21,932 19,961 20,626 18,899 20,658
Income before income taxes 10,754 10,208 11,673 10,213 9,890
Income tax expense 3,710 3,702 4,069 3,524 3,419
Net income $ 7,044 $ 6,506 $ 7,604 $ 6,689 $ 6,471
Per share data:
Weighted average shares outstanding 13,646,098 13,600,355 13,531,170 13,485,213 13,419,269
Dilutive common shares 296,682 272,516 304,998 304,828 308,674
Adjusted weighted average dilutive shares 13,942,780 13,872,871 13,836,168 13,790,041 13,727,943
Basic earnings per common share $0.52 $0.48 $0.56 $0.50 $0.48
Diluted earnings per common share $0.51 $0.47 $0.55 $0.49 $0.47
Dividend declared per share $0.19 $0.19 $0.18 $0.18 $0.18
Effective tax rate 34.5% 36.3% 34.9% 34.5% 34.6%
Supplemental Non-GAAP Performance Measures* (Includes Reconciliation of Non-GAAP to GAAP Performance Measures)
Net income (a GAAP measure) $ 7,044 $ 6,506 $ 7,604 $ 6,689 $ 6,471
add: tax-effected** due diligence and merger-related expenses 622 504 245 172 101
Net income excluding tax-effected** due diligence and merger-related expenses (a non-GAAP measure) 7,666 7,010 7,849 6,861 6,572
Basic earnings per common share excluding tax-effected** due diligence and merger-related expenses (a non-GAAP measure) $ 0.56 $ 0.52 $ 0.58 $ 0.51 $ 0.49
Diluted earnings per common share excluding tax-effected** due diligence and merger-related expenses (a non-GAAP measure) $ 0.55 $ 0.51 $ 0.57 $ 0.50 $ 0.48
*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 Twelve Months Ended December 31,
2014 2013
Interest income $ 82,906 $ 78,417
Interest expense 6,078 5,427
Net interest income 76,828 72,990
Provision for loan and lease losses 884 3,575
Net interest income after provision for loan and lease losses 75,944 69,415
Fees for wealth management services 36,774 35,184
Loan servicing and other fees 1,755 1,845
Service charges on deposits 2,578 2,445
Net gain on sale of residential mortgage loans 1,772 4,117
Net gain (loss) on sale of investment securities available for sale 471 (8)
Net gain (loss) on sale of other real estate owned 175 (300)
Bank owned life insurance income 315 358
Other operating income 4,482 4,714
Non-interest income 48,322 48,355
Salaries and wages 37,113 36,346
Employee benefits 7,340 8,832
Net gain on curtailment of nonqualified pension plan -- (690)
Occupancy and bank premises 7,305 6,862
Furniture fixtures and equipment 4,508 3,977
Advertising 1,504 1,526
Net (recovery) impairment of mortgage servicing rights 56 3
Amortization of mortgage servicing rights 476 740
Amortization of intangible assets 2,659 2,633
FDIC insurance 1,046 1,063
Due diligence and merger-related expenses 2,373 1,885
Professional fees 3,017 2,456
Early extinguishment of debt - costs and premiums -- 347
Pennsylvania bank shares tax 1,256 942
Other operating expenses 12,765 13,818
Non-interest expense 81,418 80,740
Income before income taxes 42,848 37,030
Income tax expense 15,005 12,586
Net income $ 27,843 $ 24,444
Per share data:
Weighted average shares outstanding 13,566,239 13,311,215
Dilutive common shares 294,756 260,395
Adjusted weighted average shares 13,860,995 13,571,610
Basic earnings per common share $2.05 $1.84
Diluted earnings per common share $2.01 $1.80
Dividend declared per share $0.74 $0.69
Effective tax rate 35.0% 34.0%
Supplemental Non-GAAP Performance Measures* (Includes Reconciliation of Non-GAAP to GAAP Performance Measures)
Net income (a GAAP measure) $ 27,843 $ 24,444
add: tax-effected** due diligence and merger-related expenses 1,542 1,225
Net income excluding tax-effected** due diligence and merger-related expenses (a non-GAAP measure) 29,385 25,669
Basic earnings per common share excluding tax-effected** due diligence and merger-related expenses (a non-GAAP measure) $ 2.17 $ 1.93
Diluted earnings per common share excluding tax-effected** due diligence and merger-related expenses (a non-GAAP measure) $ 2.12 $ 1.89
*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)
December 31, September 30, June 30, March 31, December 31,
2014 2014 2014 2014 2013
Assets
Interest-bearing deposits with banks $ 202,552 $ 56,253 $ 85,946 $ 59,248 $ 67,618
Investment securities - available for sale 229,577 265,939 266,402 272,599 285,808
Investment securities - trading 3,896 3,803 3,597 3,517 3,437
Loans held for sale 3,882 1,375 1,631 1,340 1,350
Portfolio loans:
Consumer 18,480 16,810 18,907 18,104 16,926
Commercial & industrial 335,645 342,524 334,474 334,295 328,459
Commercial mortgages 689,528 683,558 666,924 640,574 625,341
Construction 66,267 59,923 55,051 44,060 46,369
Residential mortgages 313,442 314,127 310,491 301,532 300,243
Home equity lines & loans 182,082 183,314 185,593 186,277 189,571
Leases 46,813 44,982 44,102 40,988 40,276
Total portfolio loans and leases 1,652,257 1,645,238 1,615,542 1,565,830 1,547,185
Earning assets 2,092,164 1,972,608 1,973,118 1,902,534 1,905,398
Cash and due from banks 16,717 11,312 17,018 14,696 13,453
Allowance for loan and lease losses (14,586) (15,599) (15,470) (15,770) (15,515)
Premises and equipment 33,748 32,733 32,679 32,473 31,796
Accrued interest receivable 5,560 5,661 5,526 5,687 5,728
Mortgage servicing rights 4,765 4,796 4,760 4,734 4,750
Goodwill 35,502 32,843 32,843 32,843 32,843
Other intangible assets 22,998 17,459 18,092 18,728 19,365
Bank owned life insurance 20,535 20,451 20,375 20,301 20,220
FHLB stock 11,523 12,889 12,775 11,911 11,654
Deferred income taxes 7,011 5,786 5,984 7,517 8,690
Other investments 5,226 4,592 4,507 4,392 4,437
Other assets 5,343 18,351 19,018 19,770 18,846
Total assets $ 2,246,506 $ 2,123,882 $ 2,131,225 $ 2,059,816 $ 2,061,665
Liabilities and shareholders' equity
Interest-bearing deposits:
Interest-bearing checking $ 277,228 $ 256,890 $ 263,247 $ 269,409 $ 266,787
Money market 566,354 550,238 559,070 556,076 544,310
Savings 138,992 142,364 145,312 141,979 135,240
Wholesale non-maturity deposits 66,693 41,290 41,840 42,704 42,937
Wholesale time deposits 73,458 60,171 50,152 34,104 34,639
Time deposits 118,400 121,158 123,572 130,983 140,794
Total interest-bearing deposits 1,241,125 1,172,111 1,183,193 1,175,255 1,164,707
Non-interest-bearing deposits 446,903 438,221 436,739 404,340 426,640
Total deposits 1,688,028 1,610,332 1,619,932 1,579,595 1,591,347
Long-term FHLB advances and other borrowings 260,146 230,574 233,132 214,640 205,644
Short-term borrowings 23,824 13,980 13,320 10,739 10,891
Other liabilities 29,034 21,387 21,470 19,365 23,885
Shareholders' equity 245,474 247,609 243,371 235,477 229,898
Total liabilities and shareholders' equity $ 2,246,506 $ 2,123,882 $ 2,131,225 $ 2,059,816 $ 2,061,665
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,
2014 2014 2014 2014 2013
Assets
Interest-bearing deposits with banks $ 115,276 $ 78,324 $ 70,775 $ 67,809 $ 56,569
Investment securities - available for sale 252,422 265,491 271,830 281,572 310,183
Investment securities - trading 3,804 3,599 3,518 3,438 2,368
Loans held for sale 982 1,116 1,280 504 1,197
Portfolio loans and leases 1,654,239 1,629,102 1,599,104 1,549,161 1,522,408
Earning assets 2,026,723 1,977,632 1,946,507 1,902,484 1,892,725
Cash and due from banks 13,795 12,739 12,067 12,302 13,132
Allowance for loan and lease losses (15,837) (15,672) (16,073) (15,761) (15,226)
Premises and equipment 33,290 32,763 32,829 32,358 31,770
Goodwill 35,539 32,843 32,843 32,843 32,843
Other intangible assets 23,392 17,821 18,459 19,095 19,741
Bank owned life insurance 20,478 20,402 20,327 20,252 20,163
FHLB stock 11,419 12,864 12,663 11,915 12,242
Deferred income taxes 2,941 5,926 7,119 7,908 11,733
Other assets 31,102 30,491 29,750 29,940 22,288
Total assets $ 2,182,842 $ 2,127,809 $ 2,096,491 $ 2,053,336 $ 2,041,411
Liabilities and shareholders' equity
Interest-bearing deposits:
Interest-bearing checking $ 259,408 $ 255,601 $ 264,087 $ 263,612 $ 248,722
Money market 553,708 565,803 556,241 545,108 548,351
Savings 143,650 143,877 143,418 137,812 137,327
Wholesale non-maturity deposits 60,197 43,256 42,970 41,828 48,465
Wholesale time deposits 68,525 54,976 48,791 35,133 22,735
Time deposits 120,855 121,986 127,167 134,574 142,258
Total interest-bearing deposits 1,206,343 1,185,499 1,182,674 1,158,067 1,147,858
Non-interest bearing deposits 446,252 426,883 416,104 415,514 420,072
Total deposits 1,652,595 1,612,382 1,598,778 1,573,581 1,567,930
Long-term FHLB advances and other borrowings 237,835 235,091 222,851 212,405 204,780
Short-term borrowings 19,407 14,074 17,220 13,090 25,364
Other liabilities 24,070 22,298 19,368 22,546 23,401
Shareholders' equity 248,935 243,964 238,274 231,714 219,936
Total liabilities and shareholders' equity $ 2,182,842 $ 2,127,809 $ 2,096,491 $ 2,053,336 $ 2,041,411
Bryn Mawr Bank Corporation
Consolidated Year-to-Date Average Balance Sheets - (unaudited)
(dollars in thousands)
For The Twelve Months Ended December 31,
2014 2013
Assets
Interest bearing deposits with banks $ 83,163 $ 67,124
Investment securities - available for sale 267,743 320,868
Investment securities - trading 3,591 2,106
Loans held for sale 972 1,729
Portfolio loans and leases 1,608,248 1,453,555
Earning assets 1,963,717 1,845,382
Cash and due from banks 12,730 12,946
Allowance for loan and lease losses (15,836) (14,800)
Premises and equipment 32,812 31,414
Goodwill 33,522 32,869
Intangible assets 19,699 20,724
Bank owned life insurance 20,365 20,041
FHLB stock 12,144 11,881
Deferred income taxes 5,960 11,714
Other assets 30,369 22,329
Total assets $ 2,115,482 $ 1,994,500
Liabilities and shareholders' equity
Interest-bearing deposits:
Interest-bearing checking $ 260,652 $ 257,292
Money market 555,267 563,914
Savings 142,210 134,771
Wholesale non-maturity deposits 47,103 41,564
Wholesale time deposits 51,956 14,210
Time deposits 126,097 162,397
Total interest-bearing deposits 1,183,285 1,174,148
Non-interest-bearing deposits 426,274 400,254
Total deposits 1,609,559 1,574,402
Long-term FHLB advances and other borrowings 227,137 167,089
Short-term borrowings 15,960 16,457
Other liabilities 22,048 24,502
Shareholders' equity 240,778 212,050
Total liabilities and shareholders' equity $ 2,115,482 $ 1,994,500
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, 2014 September 30, 2014 June 30, 2014 March 31, 2014 December 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 $ 115,276 $ 65 0.22% $ 78,324 $ 46 0.23% $ 70,775 $ 44 0.25% $ 67,809 $ 37 0.22% $ 56,569 $ 27 0.19%
Investment securities - available for sale:
Taxable 221,190 973 1.75% 230,457 884 1.52% 235,853 903 1.54% 245,006 972 1.61% 271,152 1,127 1.65%
Tax-exempt 31,232 142 1.80% 35,034 149 1.69% 35,977 151 1.68% 36,566 153 1.70% 39,031 159 1.62%
Total investment securities - available for sale 252,422 1,115 1.75% 265,491 1,033 1.54% 271,830 1,054 1.56% 281,572 1,125 1.62% 310,183 1,286 1.64%
Investment securities - trading 3,804 9 0.94% 3,599 9 0.99% 3,518 17 1.94% 3,438 7 0.83% 2,368 51 8.54%
Loans and leases * 1,655,221 19,972 4.79% 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%
Total interest-earning assets 2,026,723 21,161 4.14% 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%
Cash and due from banks 13,795 12,739 12,067 12,302 13,132
Less allowance for loan and lease losses (15,837) (15,672) (16,073) (15,761) (15,226)
Other assets 158,161 153,110 153,990 154,311 150,780
Total assets $ 2,182,842 $ 2,127,809 $ 2,096,491 $ 2,053,336 $ 2,041,411
Liabilities:
Interest-bearing deposits:
Savings, NOW and market rate deposits $ 956,766 $ 422 0.17% $ 965,281 $ 430 0.18% $ 963,746 $ 420 0.17% $ 946,532 $ 405 0.17% $ 934,400 $ 414 0.18%
Wholesale deposits 128,722 190 0.59% 98,232 175 0.71% 91,761 147 0.64% 76,961 114 0.60% 71,200 85 0.47%
Time deposits 120,855 143 0.47% 121,986 137 0.45% 127,167 146 0.46% 134,574 170 0.51% 142,258 151 0.42%
Total interest-bearing deposits 1,206,343 755 0.25% 1,185,499 742 0.25% 1,182,674 713 0.24% 1,158,067 689 0.24% 1,147,858 650 0.22%
Borrowings:
Short-term borrowings 19,407 4 0.08% 14,074 3 0.08% 17,220 5 0.12% 13,090 3 0.09% 25,364 12 0.19%
Long-term FHLB advances and other borrowings 237,835 809 1.35% 235,091 828 1.40% 222,851 781 1.41% 212,405 746 1.42% 204,780 738 1.43%
Total borrowings 257,242 813 1.25% 249,165 831 1.32% 240,071 786 1.31% 225,495 749 1.35% 230,144 750 1.29%
Total interest-bearing liabilities 1,463,585 1,568 0.43% 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%
Noninterest-bearing deposits 446,252 426,883 416,104 415,514 420,072
Other liabilities 24,070 22,298 19,368 22,546 23,401
Total noninterest-bearing liabilities 470,322 449,181 435,472 438,060 443,473
Total liabilities 1,933,907 1,883,845 1,858,217 1,821,622 1,821,475
Shareholders' equity 248,935 243,964 238,274 231,714 219,936
Total liabilities and shareholders' equity $ 2,182,842 $ 2,127,809 $ 2,096,491 $ 2,053,336 $ 2,041,411
Interest income to earning assets 4.14% 4.18% 4.34% 4.32% 4.33%
Net interest spread 3.71% 3.75% 3.92% 3.90% 3.93%
Effect of noninterest-bearing sources 0.13% 0.12% 0.11% 0.12% 0.10%
Tax-equivalent net interest income/ margin on earning assets $ 19,593 3.84% $ 19,282 3.87% $ 19,552 4.03% $ 18,838 4.02% $ 19,241 4.03%
Tax-equivalent adjustment $ 106 0.02% $ 106 0.02% $ 110 0.02% $ 115 0.02% $ 116 0.02%
Supplemental Information Regarding Accretion of Fair Value Marks
Accretion of fair value marks on loans $ 513 $ 516 $ 941 $ 761 $ 879
Accretion of fair value marks on time deposits 4 6 6 7 49
Accretion of fair value marks on borrowings 30 30 30 30 30
Net interest income from fair value marks $ 547 $ 552 $ 977 $ 798 $ 958
Effect of fair value mark accretion on tax-equivalent net interest margin 0.11% 0.11% 0.20% 0.17% 0.20%
* 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,
2014 2013
Interest Average Interest Average
Average Income/ Rates Average Income/ Rates
(dollars in thousands) Balance Expense Earned/ Paid Balance Expense Earned/ Paid
Assets:
Interest-bearing deposits with other banks $ 83,163 193 0.23% $ 67,124 158 0.24%
Investment securities available for sale:
Taxable 233,054 3,740 1.60% 282,978 3,849 1.36%
Tax-exempt 34,689 594 1.71% 37,890 588 1.55%
Investment securities - available for sale 267,743 4,334 1.62% 320,868 4,437 1.38%
Investment securities - trading 3,591 33 0.92% 2,106 73 3.47%
Loans and leases * 1,609,220 78,781 4.90% 1,455,284 74,180 5.10%
Total interest earning assets 1,963,717 83,341 4.24% 1,845,382 78,848 4.27%
Cash and due from banks 12,730 12,946
Less allowance for loan and lease losses (15,836) (14,800)
Other assets 154,871 150,972
Total assets $2,115,482 $1,994,500
Liabilities:
Savings,NOW and market rate deposits $958,129 $ 1,675 0.17% $955,977 $ 1,757 0.18%
Wholesale deposits 99,059 627 0.63% 55,774 238 0.43%
Time deposits 126,097 596 0.47% 162,397 763 0.47%
Total interest-bearing deposits $1,183,285 2,898 0.24% $1,174,148 2,758 0.23%
Short-term borrowings 15,960 17 0.11% 167,089 2,644 1.58%
Long-term FHLB advances and other borrowings 227,137 3,163 1.39% 16,457 25 0.15%
Total Borrowings 243,097 3,180 1.31% 183,546 2,669 1.45%
Total interest-bearing liabilities 1,426,382 6,078 0.43% 1,357,694 5,427 0.40%
Noninterest-bearing deposits 426,274 400,254
Other liabilities 22,048 24,502
Total noninterest-bearing liabilities 448,322 424,756
Total liabilities 1,874,704 1,782,450
Shareholders' equity 240,778 212,050
Total liabilities and shareholders' equity $ 2,115,482 $ 1,994,500
Interest income to earning assets 4.24% 4.27%
Net interest spread 3.81% 3.87%
Effect of noninterest-bearing sources 0.12% 0.11%
Tax-equivalent net interest income/ margin on earning assets $ 77,263 3.93% $ 73,421 3.98%
Tax-equivalent adjustment $ 435 0.02% $ 431 0.02%
Supplemental Information Regarding Accretion of Fair Value Marks
Accretion of fair value marks on loans $ 2,730 $ 3,064
Accretion of fair value marks on time deposits 23 349
Accretion of fair value marks on borrowings 121 150
Net interest income from fair value marks $ 2,874 $ 3,563
Effect of fair value mark accretion on tax-equivalent net interest margin 0.15% 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
December 31, September 30, June 30, March 31, December 31,
2014 2014 2014 2014 2013
Asset Quality Data
Nonaccrual loans and leases $ 10,096 $ 8,336 $ 8,388 $ 10,236 $ 10,530
90 days or more past due loans, still accruing -- -- -- -- --
Nonperforming loans and leases 10,096 8,336 8,388 10,236 10,530
Other real estate owned 1,147 894 853 1,040 855
Total nonperforming assets $ 11,243 $ 9,230 $ 9,241 $ 11,276 $ 11,385
Troubled debt restructurings included in nonperforming assets $ 4,315 $ 1,725 $ 1,597 $ 2,698 $ 1,699
Troubled debt restructurings in compliance with modified terms 4,157 6,913 7,487 6,667 7,277
Total troubled debt restructurings $ 8,472 $ 8,638 $ 9,084 $ 9,365 $ 8,976
Nonperforming loans and leases / portfolio loans & leases 0.61% 0.51% 0.52% 0.65% 0.68%
Nonperforming assets / total assets 0.50% 0.43% 0.43% 0.55% 0.55%
Net loan and lease charge-offs / average loans and leases (annualized) 0.17% 0.10% 0.05% 0.13% 0.09%
Delinquency rate* - Performing and nonperforming loans and leases 30 days or more past due 0.50% 0.48% 0.64% 0.59% 0.65%
Performing loans and leases - 30-89 days past due $ 2,232 $ 1,739 $ 3,743 $ 1,815 $ 1,718
Delinquency rate* - Performing loans and leases - 30-89 days past due 0.13% 0.11% 0.23% 0.12% 0.11%
* as a percentage of total loans and leases
Changes in the allowance for loan and lease losses:
Balance, beginning of period $ 15,599 $ 15,470 $ 15,770 $ 15,515 $ 15,027
Charge-offs (864) (493) (304) (538) (484)
Recoveries 167 72 104 43 160
Net charge-offs (697) (421) (200) (495) (324)
Provision for loan and lease losses (316) 550 (100) 750 812
Balance, end of period $ 14,586 $ 15,599 $ 15,470 $ 15,770 $ 15,515
Allowance for loan and lease losses / loans and leases 0.88% 0.95% 0.96% 1.01% 1.00%
Allowance for loan and lease losses / nonperforming loans and leases 144.5% 187.1% 184.4% 154.1% 147.3%
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,
2014 2014 2014 2014 2013
Selected ratios (annualized):
Return on average assets 1.28% 1.21% 1.45% 1.32% 1.26%
Return on average shareholders' equity 11.23% 10.58% 12.80% 11.71% 11.67%
Return on average tangible equity (2) 14.71% 13.35% 16.31% 15.10% 15.35%
Tax-equivalent yield on loans and leases 4.79% 4.81% 5.00% 5.00% 5.02%
Tax-equivalent yield on interest-earning assets 4.14% 4.18% 4.34% 4.32% 4.33%
Cost of interest-bearing funds 0.43% 0.43% 0.42% 0.42% 0.40%
Tax-equivalent net interest margin 3.84% 3.87% 4.03% 4.02% 4.03%
Book value per share $ 17.83 $ 18.03 $ 17.74 $ 17.24 $ 16.84
Tangible book value per share $ 13.58 $ 14.37 $ 14.03 $ 13.47 $ 13.02
Shares outstanding at end of period 13,769,336 13,730,581 13,719,337 13,656,979 13,650,354
Selected data:
Mortgage loans originated $ 29,929 $ 29,861 $ 39,575 $ 17,892 $ 37,190
Residential mortgage loans sold - servicing retained $ 14,382 $ 16,237 $ 15,154 $ 9,086 $ 12,523
Residential mortgage loans sold - servicing released 92 539 -- 152 531
Total residential mortgage loans sold $ 14,474 $ 16,776 $ 15,154 $ 9,238 $ 13,054
Yield on residential mortgage loans sold 3.25% 2.62% 3.54% 3.51% 4.05%
Loans serviced for others (includes residential mortgage, commercial mortgage and commercial & industrial) $ 618,001 $ 624,598 $ 622,808 $ 618,348 $ 628,879
Total wealth assets under management, administration, supervision and brokerage (1) $ 7,699,908 $ 7,580,779 $ 7,569,842 $ 7,361,977 $ 7,268,273
(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 Twelve Months Ended December 31,
2014 2013
Selected ratios (annualized):
Return on average assets 1.32% 1.23%
Return on average shareholders' equity 11.56% 11.53%
Return on average tangible equity (1) 14.85% 15.43%
Tax-equivalent yield on loans and leases 4.90% 5.10%
Tax-equivalent yield on interest-earning assets 4.24% 4.27%
Cost of interest-bearing liabilities 0.43% 0.40%
Tax-equivalent net interest margin 3.93% 3.98%
Selected data:
Residential mortgage loans originated $ 117,257 $ 197,787
Residential mortgage loans sold - servicing retained $ 54,859 $ 127,914
Residential mortgage loans sold - servicing released 783 1,067
Total residential mortgage loans sold $ 55,642 $ 128,981
(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, 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 66,881 66,762 (119) 71,097 69,568 (1,529)
State & political subdivisions 28,955 29,045 90 37,140 36,977 (163)
Mortgage-backed securities 79,498 81,382 1,884 119,044 119,363 319
Collateralized mortgage obligations 34,618 34,797 179 44,463 44,243 (220)
Other debt securities 1,900 1,900 -- 1,900 1,887 (13)
Bond mutual funds 11,956 11,835 (121) 11,456 11,457 1
Other investments 3,643 3,756 113 1,925 2,214 289
Total investment portfolio available for sale $ 227,553 $ 229,577 $ 2,024 $ 287,127 $ 285,808 $ (1,319)
Capital Ratios
Regulatory Minimum
To Be December 31, September 30, June 30, March 31, December 31,
Bryn Mawr Trust Company Well Capitalized 2014 2014 2014 2014 2013
Tier I capital to risk weighted assets ("RWA") 6.00% 11.32% 11.60% 11.68% 11.65% 11.40%
Total (Tier II) capital to RWA 10.00% 12.19% 12.54% 12.62% 12.63% 12.38%
Tier I leverage ratio 5.00% 8.98% 9.39% 9.51% 9.43% 9.14%
Tangible equity ratio N/A 8.19% 9.21% 9.18% 9.18% 8.78%
Bryn Mawr Bank Corporation
Tier I capital to RWA 6.00% 12.00% 12.05% 11.85% 11.71% 11.57%
Total (Tier II) capital to RWA 10.00% 12.87% 12.99% 12.79% 12.69% 12.55%
Tier I leverage ratio 5.00% 9.43% 9.77% 9.67% 9.50% 9.29%
Tangible equity ratio N/A 8.61% 9.58% 9.32% 9.23% 8.92%

CONTACT: Frank Leto, President, CEO 610-581-4800 J. Duncan Smith, CFO 610-526-2466Source:Bryn Mawr Bank Corporation