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Bryn Mawr Bank Corporation Reports Strong First Quarter Earnings of $7.5 Million, Declares Dividend of $0.19

BRYN MAWR, Pa., April 30, 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 $7.5 million and diluted earnings per share of $0.42 for the three months ended March 31, 2015, as compared to net income of $6.7 million and diluted earnings per share of $0.49 for the same period in 2014. Net income for the three months ended March 31, 2015 included pre-tax due diligence and merger-related expenses of $2.5 million, as compared to $264 thousand for the same period in 2014.

On a non-GAAP basis, net income, excluding tax-effected due diligence and merger-related expenses was $9.1 million, or $0.51 per diluted share, for the first quarter of 2015 as compared to $6.9 million, or $0.50 per diluted share, for the same period in 2014. Management believes these non-GAAP measures are important in evaluating the Corporation's performance. A reconciliation of these non-GAAP to GAAP performance measures is included in the schedules accompanying this earnings release.

The merger with Continental Bank Holdings, Inc. ("CBHI") (the "Merger"), which was completed on January 1, 2015, initially increased the Corporation's total assets by $741 million and included $426 million of loans and $482 million of deposits. In addition, nine new full-service branches and one Life Care Community office were added, increasing the Corporation's total number of full-service branches to twenty-nine, eight Life Care Community offices, five Wealth Management locations and two insurance agencies.

In addition to first quarter increases in net interest income, non-interest income and non-interest expense directly resulting from the Continental merger, the Corporation recorded first quarter increases in insurance revenues related to the October 2014 acquisition of Powers Craft Parker and Beard ("PCPB") and first quarter increases in gain on sale of residential mortgage loans, as the roll-out of the mortgage banking initiative gains momentum.

"With the Continental merger closed and the staff hard at work integrating the two institutions, we are delighted to see the positive contributions from the insurance division as well as the early success of the mortgage initiative," commented Frank Leto, President and Chief Executive Officer. Mr. Leto continued, "As we progress through 2015, with interest margins tightening, the continued diversification of our revenue streams will be key to our success. Our recently expanded branch network will provide significant opportunities to offer our wide array of financial solutions to both businesses and individuals in these new markets."

On April 30, 2015, the Board of Directors of the Corporation declared a quarterly dividend of $0.19 per share, payable June 1, 2015 to shareholders of record as of May 12, 2015.

SIGNIFICANT ITEMS OF NOTE

Results of Operations

  • Net income of $7.5 million for the three months ended March 31, 2015 increased $805 thousand, or 12.0%, from $6.7 million for the same period in 2014.
  • Net interest income for the three months ended March 31, 2015 was $24.8 million, an increase of $6.1 million, or 32.4%, from $18.7 million for the same period in 2014. The increase in net interest income between the periods was largely related to the interest income generated by loans acquired in the Merger. Average portfolio loans for the three months ended March 31, 2015 increased by $530.3 million from the same period in 2014. The increase in interest income resulting from loans acquired in the Merger was partially offset by an increase in interest expense on interest-bearing deposits. Average interest bearing deposits for the three months ended March 31, 2014 increased by $502.3 million as compared to the same period in 2014, primarily related to the deposits acquired in Merger.
  • The tax-equivalent net interest margin of 3.79% for the three months ended March 31, 2015 was a 23 basis point decrease from 4.02% for the same period in 2014. The decrease was largely the result of the $533.7 million increase in average portfolio loans, accompanied by a 9 basis point decline in tax-equivalent yield on portfolio loans. In addition, average interest-bearing deposits increased by $502.3 million accompanied by a 1 basis point increase in the tax-equivalent rate paid on interest-bearing deposits. The decline in yield on portfolio loans was primarily related to the lower yields earned on the loans acquired in the Merger. On a linked-quarter basis, the tax-equivalent net interest margin decreased 5 basis points from 3.84% for the fourth quarter of 2014 to 3.79% for the first quarter of 2015.
  • Non-interest income for the three months ended March 31, 2015 increased $3.6 million as compared to the same period in 2014. Contributing to this increase was an increase of $916 thousand in insurance revenues, as the fees and commissions resulting from the addition of PCPB continue to increase this source of non-interest income. Also, an $814 thousand increase in gain on sale of available for sale investment securities was recorded, as certain longer-duration investment securities, which had been acquired from CBHI, were sold in order to shorten the overall duration of the combined portfolio. In addition, sales of residential mortgage loans increased as the mortgage banking initiative begins to roll out, with the gain on sale of residential mortgage loans increasing by $484 thousand, or 149.7%, for the three months ended March 31, 2015 as compared to the same period in 2014. Residential mortgage loans originated for resale during the first quarter of 2015 totaled $27.2 million, representing a 194.6% increase from the $9.2 million originated in the same period in 2014. Other operating income also increased by $847 thousand for the first quarter of 2015 as compared to the first quarter of 2014. The increase was partially related to a $448 thousand special dividend received from the Federal Home Loan Bank of Pittsburgh (the "FHLB"), in addition to increases in certain debit card fees as a result of the added volume from the Merger. Revenue from the Wealth Management Division continues to be strong, totaling $9.1 million for the first quarter of 2015 as compared to $8.9 million for the same period in 2014.
  • Non-interest expense for the three months ended March 31, 2015 increased $8.5 million, to $27.4 million, as compared to $18.9 million for the same period in 2014. Largely contributing to the increase was a $2.2 million increase in due diligence and merger-related expenses associated with the CBHI merger. In addition to the increase in merger costs, the Corporation recorded increases of $2.4 million in salary and wages, $750 thousand in employee benefits, $533 thousand in occupancy and bank premises, and $529 thousand in furniture fixtures and equipment expenses, all of which were primarily related to the new staff and branches added in the Merger. Also, other operating expense increased by $1.3 million for the three months ended March 31, 2015 as compared to the same period in 2014. Partially contributing to this increase was a $177 thousand prepayment of debt penalty associated with FHLB borrowings and a $343 thousand early termination fee related to the cancellation of two interest rate swaps acquired in the Merger.
  • Nonperforming loans and leases of $9.1 million as of March 31, 2015 were 0.44% of total portfolio loans and leases, as compared to $10.1 million, or 0.61% of total portfolio loans and leases as of December 31, 2014. The 17 basis point decrease in the ratio of nonperforming loans and leases to total portfolio loans was largely related to the $436.3 million increase in portfolio loans between the dates. For the three months ended March 31, 2015, the Corporation recorded net loan and lease charge-offs of $859 thousand, as compared to $495 thousand for the same period in 2014. The provision for loan and lease losses (the "Provision") for the three months ended March 31, 2015 was $569 thousand as compared to $750 thousand for the same period in 2014. On a linked-quarter basis, the Provision for the first quarter of 2015 increased by $885 thousand from the $316 thousand release from the allowance for loan and lease losses (the "Allowance") recorded in the fourth quarter of 2014.

Financial Condition – March 31, 2015 Compared to December 31, 2014

  • Total portfolio loans and leases of $2.09 billion as of March 31, 2015 increased by $436.3 million from December 31, 2014. The increase was primarily related to the $426.1 million of loans initially acquired from CBHI. Organic loan growth slowed during the first quarter of 2015, as we had anticipated, based on the lending pipeline as of December 31, 2014. However, the current pipeline is strong and we expect originations to accelerate as we progress through 2015.
  • The Allowance, as of March 31, 2015, was $14.3 million, or 0.68% of portfolio loans as compared to $14.6 million, or 0.88% of portfolio loans and leases, as of December 31, 2014. The decrease in Allowance as a percentage of portfolio loans and leases was primarily the result of the increase in the balance of portfolio loans from the Merger. In accordance with GAAP, the loans acquired in the Merger were marked to their fair value at acquisition. This fair value mark is comprised of an interest rate component and a credit component, with the credit component being an estimate of the expected lifetime credit losses in the acquired portfolio. As such, no additional Provision was recorded for the acquired loan portfolio. In order to consider this fact when evaluating the adequacy of the Allowance, in addition to other factors, management also considers two additional non-GAAP measures: the Allowance as a percentage of originated loans and leases, which was 0.90% as of March 31, 2015 as compared to 0.94% as of December 31, 2014, and the Allowance plus the remaining loan mark, as a percentage of gross loans, which was 1.61% as of March 31, 2015, as compared to 1.27% as of December 31, 2014.
  • Available for sale investment securities as of March 31, 2015 were $334.7 million, an increase of $105.2 million from December 31, 2014. As a result of the Merger, the Corporation acquired $181.8 million of available for sale investment securities. During the first quarter of 2015, the Corporation sold $63.2 million of these acquired available for sale investment securities in order to shorten the overall duration of the investment portfolio. Proceeds from the sale of available for sale investment securities along with excess cash were used to pay off $94.5 million of short-term FHLB advances assumed from CBHI which matured shortly after the Merger was completed, as well as the prepayment of $19.5 million of long-term FHLB advances which had also been assumed in the Merger.
  • Total assets as of March 31, 2015 were $2.94 billion, an increase of $696.7 million from December 31, 2014. The Continental merger accounted for an initial increase in total assets of $741.3 million. In addition, cash and cash equivalents increased $25.6 million and portfolio loans and leases increased $10.2 million. These increases were offset by a $76.7 million decrease in available for sale investment securities and a $5.0 million decrease in FHLB stock between the dates.
  • Deposits of $2.24 billion, as of March 31, 2015, increased $553.3 million from December 31, 2014. The Continental merger accounted for an initial increase in $481.7 million of deposits, which included $93.9 million of non-interest-bearing deposits. In addition, increases of $41.7 million and $29.9 million in non-interest-bearing deposits and interest-bearing deposits, respectively, were recorded between the dates. As of March 31, 2015, non-interest-bearing deposits comprised 26.0% of total deposits as compared to 26.5% as of 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." All of the Bank's and the Corporation's capital ratios have increased from the levels present at December 31, 2014, largely as a result of the stock issued in the CBHI merger. In addition, increases in retained earnings and unrealized gains on available for sale investment securities contributed to the ratio increases.

EARNINGS CONFERENCE CALL

The Corporation will hold an earnings conference call at 8:30 a.m. EDT on Friday, May 1, 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 May 15, 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 10062202.

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/bmtc150501.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 CBHI'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
March 31, December 31, September 30, June 30, March 31,
2015 2014 2014 2014 2014
Interest income $ 26,754 $ 21,055 $ 20,749 $ 20,941 $ 20,161
Interest expense 1,959 1,568 1,573 1,499 1,438
Net interest income 24,795 19,487 19,176 19,442 18,723
Provision for loan and lease losses 569 (316) 550 (100) 750
Net interest income after provision for loan and lease losses 24,226 19,803 18,626 19,542 17,973
Fees for wealth management services 9,105 9,263 9,099 9,499 8,913
Loan servicing and other fees 591 450 431 428 446
Service charges on deposits 712 658 663 656 601
Net gain on sale of residential mortgage loans 808 471 440 537 324
Net gain (loss) on sale of investment securities available for sale 810 390 -- 85 (4)
Net gain (loss) on sale of other real estate owned 15 4 (49) 220 --
Bank owned life insurance income 183 84 76 74 81
Insurance revenue 1,021 795 164 157 105
Other operating income 1,520 768 719 1,101 673
Non-interest income 14,765 12,883 11,543 12,757 11,139
Salaries and wages 10,870 9,869 9,110 9,694 8,440
Employee benefits 2,729 1,900 1,652 1,809 1,979
Occupancy and bank premises 2,466 1,808 1,881 1,683 1,933
Furniture, fixtures and equipment 1,512 1,358 1,078 1,089 983
Advertising 557 400 310 455 339
Amortization of intangible assets 982 753 633 636 637
Due diligence and merger-related expenses 2,501 957 775 377 264
Professional fees 673 809 701 914 593
Pennsylvania bank shares tax 433 64 412 412 368
Other operating expenses 4,706 4,014 3,409 3,557 3,363
Non-interest expense 27,429 21,932 19,961 20,626 18,899
Income before income taxes 11,562 10,754 10,208 11,673 10,213
Income tax expense 4,068 3,710 3,702 4,069 3,524
Net income $ 7,494 $ 7,044 $ 6,506 $ 7,604 $ 6,689
Per share data:
Weighted average shares outstanding 17,545,802 13,646,098 13,600,348 13,531,155 13,485,213
Dilutive common shares 357,456 296,682 272,516 304,998 304,828
Adjusted weighted average dilutive shares 17,903,258 13,942,780 13,872,864 13,836,153 13,790,041
Basic earnings per common share $0.43 $0.52 $0.48 $0.56 $0.50
Diluted earnings per common share $0.42 $0.51 $0.47 $0.55 $0.49
Dividend declared per share $0.19 $0.19 $0.19 $0.18 $0.18
Effective tax rate 35.2% 34.5% 36.3% 34.9% 34.5%
Supplemental Non-GAAP Performance Measures* (Includes Reconciliation of Non-GAAP to GAAP Performance Measures)
Net income (a GAAP measure) $ 7,494 $ 7,044 $ 6,506 $ 7,604 $ 6,689
add: tax-effected** due diligence and merger-related expenses 1,626 622 504 245 172
Net income excluding tax-effected** due diligence and merger-related expenses (a non-GAAP measure) $ 9,120 $ 7,666 $ 7,010 $ 7,849 $ 6,861
Basic earnings per common share excluding tax-effected** due diligence and merger-related expenses (a non-GAAP measure) $ 0.52 $ 0.56 $ 0.52 $ 0.58 $ 0.51
Diluted earnings per common share excluding tax-effected** due diligence and merger-related expenses (a non-GAAP measure) $ 0.51 $ 0.55 $ 0.51 $ 0.57 $ 0.50
*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)
March 31, December 31, September 30, June 30, March 31,
2015 2014 2014 2014 2014
Assets
Interest-bearing deposits with banks $ 244,248 $ 202,552 $ 56,253 $ 85,946 $ 59,248
Investment securities - available for sale 334,746 229,577 265,939 266,402 272,599
Investment securities - trading 4,035 3,896 3,803 3,597 3,517
Loans held for sale 6,656 3,882 1,375 1,631 1,340
Portfolio loans:
Consumer 20,204 18,480 16,810 18,907 18,104
Commercial & industrial 457,432 335,645 342,524 334,474 334,295
Commercial mortgages 892,675 689,528 683,558 666,924 640,574
Construction 81,408 66,267 59,923 55,051 44,060
Residential mortgages 379,363 313,442 314,127 310,491 301,532
Home equity lines & loans 209,037 182,082 183,314 185,593 186,277
Leases 48,412 46,813 44,982 44,102 40,988
Total portfolio loans and leases 2,088,531 1,652,257 1,645,238 1,615,542 1,565,830
Earning assets 2,678,216 2,092,164 1,972,608 1,973,118 1,902,534
Cash and due from banks 17,269 16,717 11,312 17,018 14,696
Allowance for loan and lease losses (14,296) (14,586) (15,599) (15,470) (15,770)
Premises and equipment 42,888 33,748 32,733 32,679 32,473
Accrued interest receivable 7,465 5,560 5,661 5,526 5,687
Mortgage servicing rights 4,815 4,765 4,796 4,760 4,734
Goodwill 101,619 35,781 32,843 32,843 32,843
Other intangible assets 26,522 22,521 17,459 18,092 18,728
Bank owned life insurance 32,772 20,535 20,451 20,375 20,301
FHLB stock 11,541 11,523 12,889 12,775 11,911
Deferred income taxes 12,057 7,209 5,786 5,984 7,517
Other investments 9,238 5,226 4,592 4,507 4,392
Other assets 13,073 5,343 18,351 19,018 19,770
Total assets $ 2,943,179 $ 2,246,506 $ 2,123,882 $ 2,131,225 $ 2,059,816
Liabilities and shareholders' equity
Interest-bearing deposits:
Interest-bearing checking $ 349,582 $ 277,228 $ 256,890 $ 263,247 $ 269,409
Money market 717,441 566,354 550,238 559,070 556,076
Savings 184,819 138,992 142,364 145,312 141,979
Wholesale non-maturity deposits 69,555 66,693 41,290 41,840 42,704
Wholesale time deposits 73,476 73,458 60,171 50,152 34,104
Retail time deposits 263,996 118,400 121,158 123,572 130,983
Total interest-bearing deposits 1,658,869 1,241,125 1,172,111 1,183,193 1,175,255
Non-interest-bearing deposits 582,495 446,903 438,221 436,739 404,340
Total deposits 2,241,364 1,688,028 1,610,332 1,619,932 1,579,595
Long-term FHLB advances and other borrowings 250,088 260,146 230,574 233,132 214,640
Short-term borrowings 38,372 23,824 13,980 13,320 10,739
Other liabilities 35,452 29,034 21,387 21,470 19,365
Shareholders' equity 377,903 245,474 247,609 243,371 235,477
Total liabilities and shareholders' equity $ 2,943,179 $ 2,246,506 $ 2,123,882 $ 2,131,225 $ 2,059,816
Bryn Mawr Bank Corporation
Consolidated Quarterly Average Balance Sheets - (unaudited)
(dollars in thousands)
For The Three Months Ended
March 31, December 31, September 30, June 30, March 31,
2015 2014 2014 2014 2014
Assets
Interest-bearing deposits with banks $ 206,694 $ 115,276 $ 78,324 $ 70,775 $ 67,809
Investment securities - available for sale 370,293 252,422 265,491 271,830 281,572
Investment securities - trading 3,897 3,804 3,599 3,518 3,438
Loans held for sale 3,470 982 1,116 1,280 504
Portfolio loans and leases 2,079,412 1,654,239 1,629,102 1,599,104 1,549,161
Earning assets 2,663,766 2,026,723 1,977,632 1,946,507 1,902,484
Cash and due from banks 19,092 13,795 12,739 12,067 12,302
Allowance for loan and lease losses (14,866) (15,837) (15,672) (16,073) (15,761)
Premises and equipment 44,681 33,290 32,763 32,829 32,358
Goodwill 98,744 35,539 32,843 32,843 32,843
Other intangible assets 26,316 23,392 17,821 18,459 19,095
Bank owned life insurance 32,655 20,478 20,402 20,327 20,252
FHLB stock 11,928 11,419 12,864 12,663 11,915
Deferred income taxes 10,449 2,941 5,926 7,119 7,908
Other assets 25,391 31,102 30,491 29,750 29,940
Total assets $ 2,918,156 $ 2,182,842 $ 2,127,809 $ 2,096,491 $ 2,053,336
Liabilities and shareholders' equity
Interest-bearing deposits:
Interest-bearing checking $ 341,756 $ 259,408 $ 255,601 $ 264,087 $ 263,612
Money market 724,806 553,708 565,803 556,241 545,108
Savings 185,848 143,650 143,877 143,418 137,812
Wholesale non-maturity deposits 66,677 60,197 43,256 42,970 41,828
Wholesale time deposits 73,443 68,525 54,976 48,791 35,133
Retail time deposits 267,800 120,855 121,986 127,167 134,574
Total interest-bearing deposits 1,660,330 1,206,343 1,185,499 1,182,674 1,158,067
Non-interest bearing deposits 534,403 446,252 426,883 416,104 415,514
Total deposits 2,194,733 1,652,595 1,612,382 1,598,778 1,573,581
Long-term FHLB advances and other borrowings 266,342 237,835 235,091 222,851 212,405
Short-term borrowings 55,207 19,407 14,074 17,220 13,090
Other liabilities 30,935 24,070 22,298 19,368 22,546
Shareholders' equity 370,939 248,935 243,964 238,274 231,714
Total liabilities and shareholders' equity $ 2,918,156 $ 2,182,842 $ 2,127,809 $ 2,096,491 $ 2,053,336
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, 2015 December 31, 2014 September 30, 2014 June 30, 2014 March 31, 2014
(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 $ 206,694 $ 115 0.23% $ 115,276 $ 65 0.22% $ 78,324 $ 46 0.23% $ 70,775 $ 44 0.25% $ 67,809 $ 37 0.22%
Investment securities - available for sale:
Taxable 335,208 1,336 1.62% 221,190 973 1.75% 230,457 884 1.52% 235,853 903 1.54% 245,006 972 1.61%
Tax-exempt 35,085 203 2.35% 31,232 142 1.80% 35,034 149 1.69% 35,977 151 1.68% 36,566 153 1.70%
Total investment securities - available for sale 370,293 1,539 1.69% 252,422 1,115 1.75% 265,491 1,033 1.54% 271,830 1,054 1.56% 281,572 1,125 1.62%
Investment securities - trading 3,897 4 0.42% 3,804 9 0.94% 3,599 9 0.99% 3,518 17 1.94% 3,438 7 0.83%
Loans and leases * 2,082,882 25,226 4.91% 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%
Total interest-earning assets 2,663,766 26,884 4.09% 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%
Cash and due from banks 19,092 13,795 12,739 12,067 12,302
Less: allowance for loan and lease losses (14,866) (15,837) (15,672) (16,073) (15,761)
Other assets 250,164 158,161 153,110 153,990 154,311
Total assets $ 2,918,156 $ 2,182,842 $ 2,127,809 $ 2,096,491 $ 2,053,336
Liabilities:
Interest-bearing deposits:
Savings, NOW and market rate deposits $ 1,252,410 $ 594 0.19% $ 956,766 $ 422 0.17% $ 965,281 $ 430 0.18% $ 963,746 $ 420 0.17% $ 946,532 $ 405 0.17%
Wholesale deposits 140,120 188 0.54% 128,722 190 0.59% 98,232 175 0.71% 91,761 147 0.64% 76,961 114 0.60%
Time deposits 267,800 246 0.37% 120,855 143 0.47% 121,986 137 0.45% 127,167 146 0.46% 134,574 170 0.51%
Total interest-bearing deposits 1,660,330 1,028 0.25% 1,206,343 755 0.25% 1,185,499 742 0.25% 1,182,674 713 0.24% 1,158,067 689 0.24%
Borrowings:
Short-term borrowings 55,207 11 0.08% 19,407 4 0.08% 14,074 3 0.08% 17,220 5 0.12% 13,090 3 0.09%
Long-term FHLB advances and other borrowings 266,342 920 1.40% 237,835 809 1.35% 235,091 828 1.40% 222,851 781 1.41% 212,405 746 1.42%
Total borrowings 321,549 931 1.17% 257,242 813 1.25% 249,165 831 1.32% 240,071 786 1.31% 225,495 749 1.35%
Total interest-bearing liabilities 1,981,879 1,959 0.40% 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%
Noninterest-bearing deposits 534,403 446,252 426,883 416,104 415,514
Other liabilities 30,935 24,070 22,298 19,368 22,546
Total noninterest-bearing liabilities 565,338 470,322 449,181 435,472 438,060
Total liabilities 2,547,217 1,933,907 1,883,845 1,858,217 1,821,622
Shareholders' equity 370,939 248,935 243,964 238,274 231,714
Total liabilities and shareholders' equity $ 2,918,156 $ 2,182,842 $ 2,127,809 $ 2,096,491 $ 2,053,336
Interest income to earning assets 4.09% 4.14% 4.18% 4.34% 4.32%
Net interest spread 3.69% 3.71% 3.75% 3.92% 3.90%
Effect of noninterest-bearing sources 0.10% 0.13% 0.12% 0.11% 0.12%
Tax-equivalent net interest income/ margin on earning assets $ 24,925 3.79% $ 19,593 3.84% $ 19,282 3.87% $ 19,552 4.03% $ 18,838 4.02%
Tax-equivalent adjustment $ 130 0.02% $ 106 0.02% $ 106 0.02% $ 110 0.02% $ 115 0.02%
Supplemental Information Regarding Accretion of Fair Value Marks
Accretion of fair value marks on loans $ 1,127 $ 513 $ 516 $ 941 $ 761
Accretion of fair value marks on time deposits 245 4 6 6 7
Accretion of fair value marks on borrowings 70 30 30 30 30
Net interest income from fair value marks $ 1,442 $ 547 $ 552 $ 977 $ 798
Effect of fair value mark accretion on tax-equivalent net interest margin 0.22% 0.11% 0.11% 0.20% 0.17%
* 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, December 31, September 30, June 30, March 31,
2015 2014 2014 2014 2014
Asset Quality Data
Nonaccrual loans and leases $ 9,130 $ 10,096 $ 8,336 $ 8,388 $ 10,236
90 days or more past due loans, still accruing -- -- -- -- --
Nonperforming loans and leases 9,130 10,096 8,336 8,388 10,236
Other real estate owned 1,532 1,147 894 853 1,040
Total nonperforming assets $ 10,662 $ 11,243 $ 9,230 $ 9,241 $ 11,276
Troubled debt restructurings included in nonperforming assets $ 4,217 $ 4,315 $ 1,725 $ 1,597 $ 2,698
Troubled debt restructurings in compliance with modified terms 4,145 4,157 6,913 7,487 6,667
Total troubled debt restructurings $ 8,362 $ 8,472 $ 8,638 $ 9,084 $ 9,365
Nonperforming loans and leases / portfolio loans & leases 0.44% 0.61% 0.51% 0.52% 0.65%
Nonperforming assets / total assets 0.36% 0.50% 0.43% 0.43% 0.55%
Net loan and lease charge-offs / average loans and leases (annualized) 0.16% 0.17% 0.10% 0.05% 0.13%
Delinquency rate* - Performing and nonperforming loans and leases 30 days or more past due 0.51% 0.50% 0.48% 0.64% 0.59%
Performing loans and leases - 30-89 days past due $ 3,361 $ 2,232 $ 1,739 $ 3,743 $ 1,815
Delinquency rate* - Performing loans and leases - 30-89 days past due 0.16% 0.13% 0.11% 0.23% 0.12%
* as a percentage of total loans and leases
Changes in the allowance for loan and lease losses:
Balance, beginning of period $ 14,586 $ 15,599 $ 15,470 $ 15,770 $ 15,515
Charge-offs (928) (864) (493) (304) (538)
Recoveries 69 167 72 104 43
Net charge-offs (859) (697) (421) (200) (495)
Provision for loan and lease losses 569 (316) 550 (100) 750
Balance, end of period $ 14,296 $ 14,586 $ 15,599 $ 15,470 $ 15,770
Total Allowance / Total Portfolio loans and leases 0.68% 0.88% 0.95% 0.96% 1.01%
Allowance on originated loans and leases / Originated loans and leases (a non-GAAP measure) 0.90% 0.94% 1.01% 1.01% 1.09%
(Total Allowance + Loan mark) / Total Gross portfolio loans and leases (a non-GAAP measure) 1.61% 1.27% 1.36% 1.42% 1.54%
Total Allowance / nonperforming loans and leases 156.6% 144.5% 187.1% 184.4% 154.1%
Supplemental Loan and Allowance Information Used to Calculate Non-GAAP Measures
Total Allowance $ 14,296 $ 14,586 $ 15,599 $ 15,470 $ 15,770
less: Allowance on acquired loans 125 86 273 479 396
Allowance on originated loans and leases $ 14,171 $ 14,500 $ 15,326 $ 14,991 $ 15,374
Total Allowance $ 14,296 $ 14,586 $ 15,599 $ 15,470 $ 15,770
Loan mark on acquired loans 19,708 6,422 6,932 7,510 8,483
Total Allowance + Loan mark $ 34,004 $ 21,008 $ 22,531 $ 22,980 $ 24,253
Total Portfolio loans and leases $ 2,088,532 $ 1,652,257 $ 1,645,238 $ 1,615,542 $ 1,565,830
less: Originated loans and leases 1,571,377 1,535,003 1,516,104 1,479,526 1,415,317
Net acquired loans $ 517,155 $ 117,254 $ 129,134 $ 136,016 $ 150,513
add: Loan mark on acquired loans 19,708 6,422 6,932 7,510 8,483
Gross acquired loans (excludes loan mark) $ 536,863 $ 123,676 $ 136,066 $ 143,526 $ 158,996
Originated loans and leases 1,571,377 1,535,003 1,516,104 1,479,526 1,415,317
Total Gross portfolio loans and leases $ 2,108,240 $ 1,658,679 $ 1,652,170 $ 1,623,052 $ 1,574,313
For The Three Months Ended or As Of
March 31, December 31, September 30, June 30, March 31,
2015 2014 2014 2014 2014
Selected ratios (annualized):
Return on average assets 1.04% 1.28% 1.21% 1.45% 1.32%
Return on average shareholders' equity 8.19% 11.23% 10.58% 12.80% 11.71%
Return on average tangible equity (2) 12.36% 14.71% 13.35% 16.31% 15.10%
Tax-equivalent yield on loans and leases 4.91% 4.79% 4.81% 5.00% 5.00%
Tax-equivalent yield on interest-earning assets 4.09% 4.14% 4.18% 4.34% 4.32%
Cost of interest-bearing funds 0.40% 0.43% 0.43% 0.42% 0.42%
Tax-equivalent net interest margin 3.79% 3.84% 3.87% 4.03% 4.02%
Book value per share $ 21.26 $ 17.83 $ 18.03 $ 17.74 $ 17.24
Tangible book value per share $ 14.05 $ 13.59 $ 14.37 $ 14.03 $ 13.47
Shares outstanding at end of period 17,777,628 13,769,336 13,730,581 13,719,337 13,656,979
Selected data:
Mortgage loans originated $ 35,728 $ 29,929 $ 29,861 $ 39,575 $ 17,892
Residential mortgage loans sold - servicing retained $ 24,569 $ 14,382 $ 16,237 $ 15,154 $ 9,086
Residential mortgage loans sold - servicing released 2,644 92 539 -- 152
Total residential mortgage loans sold $ 27,213 $ 14,474 $ 16,776 $ 15,154 $ 9,238
Yield on residential mortgage loans sold 2.97% 3.25% 2.62% 3.54% 3.51%
Residential mortgage loans serviced for others $ 591,989 $ 590,659 $ 594,156 $ 594,660 $ 598,338
Total wealth assets under management, administration, supervision and brokerage (1) $ 7,816,441 $ 7,699,908 $ 7,580,779 $ 7,569,842 $ 7,361,977
(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.
Investment Portfolio - Available for Sale As of March 31, 2015 As of December 31, 2014
Net Net
Amortized Fair Unrealized Amortized Fair Unrealized
SECURITY DESCRIPTION Cost Value Gain / (Loss) Cost Value Gain / (Loss)
U.S. Treasury securities $ 102 $ 102 $ -- $ 102 $ 100 $ (2)
Obligations of the U.S. Government and agencies 89,078 89,669 591 66,881 66,762 (119)
State & political subdivisions 32,128 32,261 133 28,955 29,045 90
Mortgage-backed securities 159,472 162,370 2,898 79,498 81,382 1,884
Collateralized mortgage obligations 32,412 32,759 347 34,618 34,797 179
Other debt securities 1,900 1,900 -- 1,900 1,900 --
Bond mutual funds 11,956 11,883 (73) 11,956 11,835 (121)
Other investments 3,674 3,802 128 3,643 3,756 113
Total investment portfolio available for sale $ 330,722 $ 334,746 $ 4,024 $ 227,553 $ 229,577 $ 2,024
Capital Ratios
Regulatory Minimum
To Be March 31, December 31, September 30, June 30, March 31,
Bryn Mawr Trust Company Well Capitalized 2015 2014 2014 2014 2014
Tier I capital to risk weighted assets ("RWA") 8.00% 12.38% 11.32% 11.60% 11.68% 11.65%
Total (Tier II) capital to RWA 10.00% 13.05% 12.19% 12.54% 12.62% 12.63%
Tier I leverage ratio 5.00% 9.52% 8.98% 9.39% 9.51% 9.43%
Tangible equity ratio N/A 8.42% 8.19% 9.21% 9.18% 9.18%
Common equity Tier I capital to RWA 4.50% 12.38% N/A N/A N/A N/A
Bryn Mawr Bank Corporation
Tier I capital to RWA 8.00% 12.63% 12.00% 12.05% 11.85% 11.71%
Total (Tier II) capital to RWA 10.00% 13.30% 12.87% 12.99% 12.79% 12.69%
Tier I leverage ratio 5.00% 9.77% 9.43% 9.77% 9.67% 9.50%
Tangible equity ratio N/A 8.87% 8.61% 9.58% 9.32% 9.23%
Common equity Tier I capital to RWA 4.50% 12.63% N/A N/A N/A N/A

CONTACT: Frank Leto, President, CEO 610-581-4800 J. Duncan Smith, CFO 610-526-2466

Source:Bryn Mawr Bank Corporation