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Bryn Mawr Bank Corporation Posts Record Second Quarter Earnings of $8.1 Million, Increases Dividend by 5.3% to $0.20, Reports Strong Loan Growth, Wealth Assets Reach Record High of $8.5 Billion

BRYN MAWR, Pa., July 23, 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 $8.1 million and diluted earnings per share of $0.45 for the three months ended June 30, 2015, as compared to net income of $7.6 million and diluted earnings per share of $0.55 for the same period in 2014.

On a non-GAAP basis, core net income, which excludes due diligence and merger-related expenses and net gain on sale of available for sale investment securities, was $9.0 million, or $0.50 per diluted share, for the second quarter of 2015 as compared to $7.8 million, or $0.56 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 the non-GAAP to GAAP performance measures is included in the schedules accompanying this earnings release.

In addition to the fluctuations in securities gains and due diligence and merger-related expenses, the provision for loan and lease losses (the “Provision”) increased by $950 thousand for the three months ended June 30, 2015 as compared to the same period in 2014. On a tax-effected basis, this increase in Provision accounts for a $0.03 decrease in diluted earnings per share for the second quarter of 2015 as compared to the same period in 2014.

“While we continue to integrate Continental’s operations into Bryn Mawr’s, we are very pleased with the strong results for the second quarter, as well as the solid loan growth that we experienced during the quarter,” commented Frank Leto, President and Chief Executive Officer. Mr. Leto continued, “With an increase in our quarterly core earnings of $1.2 million, year over year, we are beginning to realize the significant contributions that the Continental merger, as well as our recent insurance acquisitions, are making to our bottom line. Once we have completed the Continental systems conversion, scheduled for the fourth quarter of 2015, we will begin to fully realize the anticipated cost savings, as many of the redundant costs will be eliminated.”

On July 23, 2015, the Board of Directors of the Corporation declared a quarterly dividend of $0.20 per share, payable September 1, 2015 to shareholders of record as of August 4, 2015.

SIGNIFICANT ITEMS OF NOTE

Results of Operations – 2nd Quarter 2015 Compared to 2nd Quarter 2014

  • Net income of $8.1 million for the three months ended June 30, 2015 increased $515 thousand, or 6.8%, from $7.6 million for the same period in 2014.
  • Net interest income for the three months ended June 30, 2015 was $25.1 million, an increase of $5.6 million, or 28.9%, from $19.4 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 January 1, 2015 merger with Continental Bank Holdings, Inc. (“CBHI” and the “Merger”). Average loans for the three months ended June 30, 2015 increased by $517.7 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 June 30, 2015 increased by $446.1 million as compared to the same period in 2014, primarily related to the deposits acquired in Merger.
  • The tax-equivalent net interest margin of 3.81% for the three months ended June 30, 2015 was a 22 basis point decrease from 4.03% for the same period in 2014. The decrease was largely the result of the 15 basis point decline in tax-equivalent yield on portfolio loans, accompanied by a $517.7 million increase in average portfolio loan balances. In addition, average interest-bearing deposits, which increased by $446.1 million, included a 2 basis point increase in the tax-equivalent rate paid. The decline in yield on portfolio loans was primarily related to the lower yields earned on the loans acquired in the Merger. The contribution of fair value mark accretion to the tax equivalent net interest margin accounted for 23 basis points of the margin for the second quarter of 2015 as compared to 20 basis points for the same period in 2014.
  • Non-interest income for the three months ended June 30, 2015 increased $1.4 million as compared to the same period in 2014. Contributing to this increase was an increase of $660 thousand in insurance revenues, as the Bank experienced a continued increase in fees and commissions resulting from the October 2014 acquisition of Powers Craft Parker and Beard, Inc. and the April 2015 acquisition of the Robert J. McAllister Agency. These two acquisitions continue to enhance this source of non-interest income. In addition, gain on sale of residential mortgage loans increased by $241 thousand, or 44.9%, for the three months ended June 30, 2015 as compared to the same period in 2014. Residential mortgage loans originated for resale during the second quarter of 2015 totaled $63.3 million, representing a 59.9% increase from the $39.6 million originated in the same period in 2014. Revenue from the Wealth Management Division totaled $9.6 million for the second quarter of 2015 as compared to $9.5 million for the same period in 2014.
  • Non-interest expense for the three months ended June 30, 2015 increased $5.4 million, to $26.0 million, as compared to $20.6 million for the same period in 2014. Increases of $1.4 million, $809 thousand and $1.1 million, in salary and wages, employee benefits and occupancy expenses, respectively, much of which was related to the addition of the Continental staff and offices, contributed to the increase. In addition, due diligence and merger-related costs increased by $917 thousand from the second quarter of 2014, largely due to the Merger and the ongoing integration efforts. Due diligence and merger-related expenses include consultant costs, investment banker fees, contract breakage fees, retention bonuses for severed employees, as well as salary and wages for redundant staffing involved in the integration of the two institutions.
  • Nonperforming loans and leases of $9.0 million as of June 30, 2015 were 0.42% 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 June 30, 2015, the Corporation recorded net loan and lease charge-offs of $187 thousand, as compared to $200 thousand for the same period in 2014. The Provision for the three months ended June 30, 2015 was $850 thousand as compared to a $100 thousand release from the allowance for loan and lease losses (the “Allowance”) for the same period in 2014. Directly correlated with the increase in the Provision was the $64.7 million increase in portfolio loans during the second quarter of 2015.

Results of Operations – 2nd Quarter 2015 Compared to 1st Quarter 2015

  • Net income of $8.1 million for the three months ended June 30, 2015 increased $625 thousand, or 8.3%, from $7.5 million for the three months ended March 31, 2015.
  • Net interest income for the three months ended June 30, 2015 was $25.1 million, an increase of $275 thousand from $24.8 million for the three months ended March 31, 2015. The increase in net interest income between the periods was related to a $404 thousand increase in interest on loans, partially offset by a $174 thousand decrease in interest on investment securities. Average investment securities available for sale decreased by $23.2 million for the second quarter of 2015 as compared to the first quarter of 2015.
  • The tax-equivalent net interest margin of 3.81% for the three months ended June 30, 2015 increased 2 basis points from 3.79% in the first quarter of 2015. The contribution of fair value mark accretion to the tax equivalent net interest margin accounted for 23 basis points of the margin for the second quarter of 2015 as compared to 22 basis points for the first quarter of 2015.
  • Non-interest income for the three months ended June 30, 2015 decreased $588 thousand from the first quarter of 2015. This decrease was primarily related to an $807 thousand decrease in gain on sale of available for sale investment securities and a $316 thousand decrease in dividends on bank stocks. These decreases were partially offset by a $495 thousand increase in wealth management revenue between the periods.
  • Non-interest expense for the three months ended June 30, 2015 decreased $1.4 million, to $26.0 million, as compared to $27.4 million for the first quarter of 2015. Largely accounting for the decrease was a $1.2 million decrease in due diligence and merger-related costs.
  • For the three months ended June 30, 2015, the Corporation recorded net loan and lease charge-offs of $187 thousand, as compared to $859 thousand for the first quarter of 2015. The Provision for the three months ended June 30, 2015 was $850 thousand as compared to $569 thousand for the first quarter of 2015. The primary driver for the Provision increase was the $64.7 million, or 3.1%, increase in portfolio loan balances between March 31, 2015 and June 30, 2015.

Financial Condition – June 30, 2015 Compared to December 31, 2014

  • Total portfolio loans and leases of $2.15 billion as of June 30, 2015 increased by $501.0 million from December 31, 2014. In addition to the $424.2 million of portfolio loans acquired in the Merger, strong organic loan growth of $64.7 million during the second quarter of 2015 occurred as the Bank’s expanded footprint and new team of lenders were able to develop many new lending relationships.
  • The Allowance, as of June 30, 2015, was $15.0 million, or 0.69% 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. Loans acquired in the Merger were marked to their fair value at acquisition, and, as such, no additional Allowance was recorded for the acquired loan portfolio. In order to take this into account when evaluating the adequacy of the Allowance, in addition to other factors, management considers two additional non-GAAP measures: the Allowance as a percentage of originated loans and leases, which was 0.88% as of June 30, 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 1.60% as of June 30, 2015, as compared to 1.27% as of December 31, 2014.
  • Available for sale investment securities as of June 30, 2015 were $349.5 million, an increase of $119.9 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 down $94.5 million of short-term FHLB advances assumed from CBHI which matured shortly after the Merger was completed, as well as to prepay $19.5 million of long-term FHLB advances which had also been assumed in the Merger.
  • Total assets as of June 30, 2015 were $2.95 billion, an increase of $703.5 million from December 31, 2014. The Continental merger accounted for an initial increase in total assets of $742.6 million. Taking into account the assets acquired in the Merger, portfolio loans and leases increased by $76.8 million, available for sale investment securities decreased by $61.9 million, and FHLB stock decreased by $5.0 million.
  • Wealth assets under management, administration, supervision and brokerage totaled $8.54 billion as of June 30, 2015, an increase of $836.1 million from December 31, 2014.
  • Deposits of $2.26 billion as of June 30, 2015, increased $572.6 million from December 31, 2014. The Merger accounted for an initial increase of $481.7 million of deposits, which included $93.9 million of non-interest-bearing deposits. In addition, an increase of $95.6 million and a decrease of $4.7 million in non-interest-bearing deposits and interest-bearing deposits, respectively, were recorded between the dates. As of June 30, 2015, non-interest-bearing deposits comprised 28.2% 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 and increases in retained earnings.

Other Items of Note

  • For the three months ended June 30, 2015, the Corporation repurchased 88,800 shares of common stock under its February 2006 stock buyback program at an average purchase price of $29.58 per share. The repurchase was made in order to offset share issuances in connection with the Corporation’s various stock-based compensation awards, which totaled 98,473 shares during the second quarter of 2015.

EARNINGS CONFERENCE CALL

The Corporation will hold an earnings conference call at 8:30 a.m. EDT on Friday, July 24, 2015. Interested parties may participate by dialing (toll-free) 1-877-504-8812 (international (toll) 1-412-902-6656). A recorded replay of the conference call will be available one hour after the conclusion of the call and will remain available through August 7, 2015. The recorded replay may be accessed by dialing (toll-free) 1-877-344-7529 (international (toll) 1-412-317-0088) and the conference number is 10067729.

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/bmtc150724.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 updated by 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
June 30,March 31,December 31,September 30,June 30,
2015 2015 2014 2014 2014
Interest and fees on loans and leases$ 25,568 $ 25,164 $ 19,913 $ 19,710 $ 19,876
Interest on cash and cash equivalents 124 115 66 46 44
Interest on investment securities:
Taxable 1,161 1,320 891 863 891
Non-taxable 106 135 95 100 101
Dividends 34 20 90 30 29
Total interest income 26,993 26,754 21,055 20,749 20,941
Savings, NOW and market rate deposits 575 594 422 430 420
Wholesale deposits 195 188 190 175 147
Time deposits 292 246 143 137 146
Interest on deposits 1,062 1,028 755 742 713
Interest on short-term borrowings 10 21 4 4 5
Interest on FHLB advances and other borrowings 851 910 809 827 781
Total interest expense 1,923 1,959 1,568 1,573 1,499
Net interest income 25,070 24,795 19,487 19,176 19,442
Provision for loan and lease losses 850 569 (316) 550 (100 )
Net interest income after
provision for loan and lease losses 24,220 24,226 19,803 18,626 19,542
Fees for wealth management services 9,600 9,105 9,263 9,099 9,499
Service charges on deposits 752 712 658 663 656
Loan servicing and other fees 597 591 450 431 428
Net gain on sale of residential mortgage loans 778 808 471 440 537
Net gain on sale of investment securities available for sale 3 810 390 - 85
Net gain (loss) on sale of other real estate owned 75 15 4 (49) 220
Dividends on bank stocks 299 615 211 126 198
Insurance revenue 817 1,021 795 164 157
Other operating income 1,256 1,088 641 669 977
Non-interest income 14,177 14,765 12,883 11,543 12,757
Salaries and wages 11,064 10,870 9,869 9,110 9,694
Employee benefits 2,618 2,729 1,900 1,652 1,809
Occupancy and bank premises 2,808 2,466 1,808 1,881 1,683
Furniture, fixtures and equipment 1,488 1,512 1,358 1,078 1,089
Advertising 479 557 400 310 455
Amortization of intangible assets 955 982 753 633 636
Due diligence and merger-related expenses 1,294 2,501 957 775 377
Professional fees 827 673 809 701 914
Pennsylvania bank shares tax 433 433 64 412 412
Information technology 814 702 747 678 697
Other operating expenses 3,202 4,004 3,267 2,731 2,860
Non-interest expense 25,982 27,429 21,932 19,961 20,626
Income before income taxes 12,415 11,562 10,754 10,208 11,673
Income tax expense 4,296 4,068 3,710 3,702 4,069
Net income$ 8,119 $ 7,494 $ 7,044 $ 6,506 $ 7,604
Per share data:
Weighted average shares outstanding 17,713,794 17,545,802 13,646,098 13,600,348 13,531,155
Dilutive common shares 340,869 357,456 296,682 272,516 304,998
Adjusted weighted average diluted shares 18,054,663 17,903,258 13,942,780 13,872,864 13,836,153
Basic earnings per common share$0.46 $0.43 $ 0.52 $0.48 $ 0.56
Diluted earnings per common share$0.45 $0.42 $ 0.51 $0.47 $ 0.55
Dividend declared per share$0.19 $0.19 $ 0.19 $0.19 $ 0.18
Effective tax rate 34.6% 35.2% 34.5 % 36.3% 34.9 %
Supplemental Non-GAAP Performance Measures* (Includes Reconciliation of Non-GAAP to GAAP Performance Measures)
Net income (a GAAP measure)$ 8,119 $ 7,494 $ 7,044 $ 6,506 $ 7,604
less: tax-effected net gain on sale of available for sale investments (2) (527) (254) - (55)
add: tax-effected** due diligence and merger-related expenses 841 1,626 622 504 245
Net income excluding tax-effected** due diligence and merger-related expenses and net gain on sale of available for sale investment securities (a non-GAAP measure)$ 8,958 $ 8,593 $ 7,413 $ 7,010 $ 7,794
Basic earnings per common share excluding tax-effected** due diligence and merger-related expenses and security gains (a non-GAAP measure)$ 0.51 $ 0.49 $ 0.54 $ 0.52 $ 0.58
Diluted earnings per common share excluding tax-effected** due diligence and merger-related expenses and security gains (a non-GAAP measure)$ 0.50 $ 0.48 $ 0.53 $ 0.51 $ 0.56
*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 Six Months Ended June 30,
2015 2014
Interest and fees on loans and leases$ 50,732 $ 38,918
Interest on cash and cash equivalents 239 81
Interest on investment securities:
Taxable 2,481 1,842
Non-taxable 241 204
Dividends 54 57
Total interest income$ 53,747 $ 41,102
Savings, NOW and market rate deposits 1,169 825
Wholesale deposits 383 316
Time deposits 538 261
Interest on deposits 2,090 1,402
Interest on short-term borrowings 31 8
Interest on FHLB advances and other borrowings 1,761 1,527
Total interest expense 3,882 2,937
Net interest income 49,865 38,165
Provision for loan and lease losses 1,419 650
Net interest income after
provision for loan and lease losses 48,446 37,515
Fees for wealth management services 18,705 18,412
Service charges on deposits 1,464 1,257
Loan servicing and other fees 1,188 874
Net gain on sale of residential mortgage loans 1,586 861
Net gain on sale of investment securities available for sale 813 81
Net gain on sale of other real estate owned 90 220
Dividends on bank stocks 914 278
Insurance revenue 1,838 234
Other operating income 2,344 1,679
Non-interest income 28,942 23,896
Salaries and wages 21,934 18,134
Employee benefits 5,347 3,788
Occupancy and bank premises 5,274 3,616
Furniture fixtures and equipment 3,000 2,072
Advertising 1,036 794
Amortization of intangible assets 1,937 1,273
Due diligence and merger-related expenses 3,795 641
Professional fees 1,500 1,507
Pennsylvania bank shares tax 866 780
Information technology 1,516 1,346
Other operating expenses 7,206 5,574
Non-interest expense 53,411 39,525
Income before income taxes 23,977 21,886
Income tax expense 8,364 7,593
Net income$ 15,613 $ 14,293
Per share data:
Weighted average shares outstanding 17,630,263 13,508,311
Dilutive common shares 349,163 304,913
Adjusted weighted average shares 17,979,426 13,813,224
Basic earnings per common share$0.89 $1.06
Diluted earnings per common share$0.87 $1.03
Dividend declared per share$0.38 $0.36
Effective tax rate 34.9% 34.7%
Supplemental Non-GAAP Performance Measures* (Includes Reconciliation of Non-GAAP to GAAP Performance Measures)
Net income (a GAAP measure)$ 15,613 $ 14,293
less: tax-effected net gain on sale of available for sale investments (529) (53)
add: tax-effected** due diligence and merger-related expenses 2,467 417
Net income excluding tax-effected** due diligence and merger-related expenses and net gain on sale of available for sale investment securities (a non-GAAP measure)$ 17,550 $ 14,657
Basic earnings per common share excluding tax-effected** due diligence and merger-related expenses (a non-GAAP measure)$ 1.00 $ 1.09
Diluted earnings per common share excluding tax-effected** due diligence and merger-related expenses (a non-GAAP measure)$ 0.98 $ 1.06
*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)
June 30,March 31,December 31,September 30,June 30,
2015 2015 2014 2014 2014
Assets
Interest-bearing deposits with banks$ 156,282 $ 244,248 $ 202,552 $ 56,253 $ 85,946
Investment securities - available for sale 349,496 334,746 229,577 265,939 266,402
Investment securities - trading 4,029 4,035 3,896 3,803 3,597
Loans held for sale 15,363 6,656 3,882 1,375 1,631
Portfolio loans:
Consumer 25,123 20,204 18,480 16,810 18,907
Commercial & industrial 472,702 457,432 335,645 342,524 334,474
Commercial mortgages 924,161 892,675 689,528 683,558 666,924
Construction 88,122 81,408 66,267 59,923 55,051
Residential mortgages 381,323 379,363 313,442 314,127 310,491
Home equity lines & loans 211,982 209,037 182,082 183,314 185,593
Leases 49,850 48,412 46,813 44,982 44,102
Total portfolio loans and leases 2,153,263 2,088,531 1,652,257 1,645,238 1,615,542
Earning assets 2,678,433 2,678,216 2,092,164 1,972,608 1,973,118
Cash and due from banks 20,258 17,269 16,717 11,312 17,018
Allowance for loan and lease losses (14,959) (14,296) (14,586) (15,599) (15,470)
Premises and equipment 43,164 42,888 33,748 32,733 32,679
Accrued interest receivable 7,518 7,465 5,560 5,661 5,526
Mortgage servicing rights 4,970 4,815 4,765 4,796 4,760
Goodwill 104,322 101,619 35,502 32,843 32,843
Other intangible assets 26,309 26,522 22,998 17,459 18,092
Bank owned life insurance 32,941 32,772 20,535 20,451 20,375
FHLB stock 11,542 11,541 11,523 12,889 12,775
Deferred income taxes 11,066 12,057 7,011 5,786 5,984
Other investments 9,295 9,238 5,226 4,592 4,507
Other assets 15,155 13,073 5,343 18,351 19,018
Total assets$ 2,950,014 $ 2,943,179 $ 2,246,506 $ 2,123,882 $ 2,131,225
Liabilities and shareholders' equity
Interest-bearing deposits:
Interest-bearing checking$ 328,606 $ 349,582 $ 277,228 $ 256,890 $ 263,247
Money market 699,263 717,441 566,354 550,238 559,070
Savings 189,120 184,819 138,992 142,364 145,312
Wholesale non-maturity deposits 65,365 69,555 66,693 41,290 41,840
Wholesale time deposits 67,894 73,476 73,458 60,171 50,152
Retail time deposits 274,008 263,996 118,400 121,158 123,572
Total interest-bearing deposits 1,624,256 1,658,869 1,241,125 1,172,111 1,183,193
Non-interest-bearing deposits 636,390 582,495 446,903 438,221 436,739
Total deposits 2,260,646 2,241,364 1,688,028 1,610,332 1,619,932
Long-term FHLB advances and other borrowings 244,923 250,088 260,146 230,574 233,132
Short-term borrowings 26,406 38,372 23,824 13,980 13,320
Other liabilities 36,941 35,452 29,034 21,387 21,470
Shareholders' equity 381,098 377,903 245,474 247,609 243,371
Total liabilities and shareholders' equity$ 2,950,014 $ 2,943,179 $ 2,246,506 $ 2,123,882 $ 2,131,225
Bryn Mawr Bank Corporation
Consolidated Quarterly Average Balance Sheets - (unaudited)
(dollars in thousands)
For The Three Months Ended
June 30,March 31,December 31,September 30,June 30,
2015 2015 2014 2014 2014
Assets
Interest-bearing deposits with banks$ 182,099 $ 206,694 $ 115,276 $ 78,324 $ 70,775
Investment securities - available for sale 347,046 370,293 252,422 265,491 271,830
Investment securities - trading 4,034 3,897 3,804 3,599 3,518
Loans held for sale 6,735 3,470 982 1,116 1,280
Portfolio loans and leases 2,111,371 2,079,412 1,654,239 1,629,102 1,599,104
Earning assets 2,651,285 2,663,766 2,026,723 1,977,632 1,946,507
Cash and due from banks 16,222 19,092 13,795 12,739 12,067
Allowance for loan and lease losses (14,346) (14,866) (15,837) (15,672) (16,073)
Premises and equipment 43,172 44,681 33,290 32,763 32,829
Goodwill 102,237 98,744 35,539 32,843 32,843
Other intangible assets 26,879 26,316 23,392 17,821 18,459
Bank owned life insurance 32,830 32,655 20,478 20,402 20,327
FHLB stock 11,542 11,928 11,419 12,864 12,663
Deferred income taxes 11,819 10,449 2,941 5,926 7,119
Other assets 29,061 25,391 31,102 30,491 29,750
Total assets$ 2,910,701 $ 2,918,156 $ 2,182,842 $ 2,127,809 $ 2,096,491
Liabilities and shareholders' equity
Interest-bearing deposits:
Interest-bearing checking$ 339,101 $ 341,756 $ 259,408 $ 255,601 $ 264,087
Money market 699,100 724,806 553,708 565,803 556,241
Savings 186,343 185,848 143,650 143,877 143,418
Wholesale non-maturity deposits 61,306 66,677 60,197 43,256 42,970
Wholesale time deposits 69,191 73,443 68,525 54,976 48,791
Retail time deposits 273,718 267,800 120,855 121,986 127,167
Total interest-bearing deposits 1,628,759 1,660,330 1,206,343 1,185,499 1,182,674
Non-interest bearing deposits 580,240 534,403 446,252 426,883 416,104
Total deposits 2,208,999 2,194,733 1,652,595 1,612,382 1,598,778
Long-term FHLB advances and other borrowings 249,678 266,342 237,835 235,091 222,851
Short-term borrowings 34,980 55,207 19,407 14,074 17,220
Other liabilities 37,890 30,935 24,070 22,298 19,368
Shareholders' equity 379,154 370,939 248,935 243,964 238,274
Total liabilities and shareholders' equity$ 2,910,701 $ 2,918,156 $ 2,182,842 $ 2,127,809 $ 2,096,491

Bryn Mawr Bank Corporation
Consolidated Year-to-Date Average Balance Sheets - (unaudited)
(dollars in thousands)
For The Six Months Ended June 30,
2015 2014
Assets
Interest bearing deposits with banks$ 194,328 $ 67,124
Investment securities - available for sale 358,605 320,868
Investment securities - trading 3,966 2,106
Loans held for sale 5,111 1,729
Portfolio loans and leases 2,095,481 1,453,555
Earning assets 2,657,491 1,845,382
Cash and due from banks 17,649 12,946
Allowance for loan and lease losses (14,605) (14,800)
Premises and equipment 43,922 31,414
Goodwill 99,969 32,869
Intangible assets 26,599 20,724
Bank owned life insurance 32,743 20,041
FHLB stock 11,763 11,881
Deferred income taxes 11,669 11,714
Other assets 27,208 22,329
Total assets$ 2,914,408 $ 1,994,500
Liabilities and shareholders' equity
Interest-bearing deposits:
Interest-bearing checking$ 340,421 $ 257,292
Money market 711,882 563,914
Savings 186,096 134,771
Wholesale non-maturity deposits 63,977 41,564
Wholesale time deposits 71,305 14,210
Time deposits 270,775 162,397
Total interest-bearing deposits 1,644,456 1,174,148
Non-interest-bearing deposits 557,386 400,254
Total deposits 2,201,842 1,574,402
Long-term FHLB advances and other borrowings 257,963 167,089
Short-term borrowings 45,038 16,457
Other liabilities 34,332 24,502
Shareholders' equity 375,233 212,050
Total liabilities and shareholders' equity$ 2,914,408 $ 1,994,500

Bryn Mawr Bank Corporation
Quarterly Average Balances and Tax-Equivalent Interest Income and Expense and Tax-Equivalent Yields - (unaudited)
(dollars in thousands)
For The Three Months Ended
June 30, 2015
March 31, 2015
December 31, 2014 September 30, 2014
June 30, 2014
(dollars in thousands)Average BalanceInterest Income/ ExpenseAverage Rates Earned/ Paid Average BalanceInterest Income/ ExpenseAverage Rates Earned/ Paid Average BalanceInterest Income/ ExpenseAverage Rates Earned/ Paid Average BalanceInterest Income/ ExpenseAverage Rates Earned/ Paid Average BalanceInterest Income/ ExpenseAverage Rates Earned/ Paid
Assets:
Interest-bearing deposits with other banks$ 182,099 $ 124 0.27%$ 206,694 $ 115 0.23%$ 115,276 $ 65 0.22%$ 78,324 $ 46 0.23%$ 70,775 $ 44 0.25%
Investment securities - available for sale:
Taxable 310,011 1,184 1.53% 335,208 1,336 1.62% 221,190 973 1.75% 230,457 884 1.52% 235,853 903 1.54%
Tax-exempt 37,035 157 1.70% 35,085 203 2.35% 31,232 142 1.80% 35,034 149 1.69% 35,977 151 1.68%
Total investment securities - available for sale 347,046 1,341 1.55% 370,293 1,539 1.69% 252,422 1,115 1.75% 265,491 1,033 1.54% 271,830 1,054 1.56%
Investment securities - trading 4,034 11 1.09% 3,897 4 0.42% 3,804 9 0.94% 3,599 9 0.99% 3,518 17 1.94%
Loans and leases * 2,118,106 25,623 4.85% 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%
Total interest-earning assets 2,651,285 27,099 4.10% 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%
Cash and due from banks 16,222 19,092 13,795 12,739 12,067
Less: allowance for loan and lease losses (14,346) (14,866) (15,837) (15,672) (16,073)
Other assets 257,540 250,164 158,161 153,110 153,990
Total assets$ 2,910,701 $ 2,918,156 $ 2,182,842 $ 2,127,809 $ 2,096,491
Liabilities:
Interest-bearing deposits:
Savings, NOW and market rate deposits$ 1,224,544 $ 575 0.19%$ 1,252,410 $ 594 0.19%$ 956,766 $ 422 0.17%$ 965,281 $ 430 0.18%$ 963,746 $ 420 0.17%
Wholesale deposits 130,497 195 0.60% 140,120 188 0.54% 128,722 190 0.59% 98,232 175 0.71% 91,761 147 0.64%
Time deposits 273,718 292 0.43% 267,800 246 0.37% 120,855 143 0.47% 121,986 137 0.45% 127,167 146 0.46%
Total interest-bearing deposits 1,628,759 1,062 0.26% 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%
Borrowings:
Short-term borrowings 34,980 10 0.11% 55,344 21 0.15% 19,407 4 0.08% 14,074 3 0.08% 17,220 5 0.12%
Long-term FHLB advances and other borrowings 249,678 851 1.37% 266,205 910 1.39% 237,835 809 1.35% 235,091 828 1.40% 222,851 781 1.41%
Total borrowings 284,658 861 1.21% 321,549 931 1.17% 257,242 813 1.25% 249,165 831 1.32% 240,071 786 1.31%
Total interest-bearing liabilities 1,913,417 1,923 0.40% 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%
Noninterest-bearing deposits 580,240 534,403 446,252 426,883 416,104
Other liabilities 37,890 30,935 24,070 22,298 19,368
Total noninterest-bearing liabilities 618,130 565,338 470,322 449,181 435,472
Total liabilities 2,531,547 2,547,217 1,933,907 1,883,845 1,858,217
Shareholders' equity 379,154 370,939 248,935 243,964 238,274
Total liabilities and shareholders' equity$ 2,910,701 $ 2,918,156 $ 2,182,842 $ 2,127,809 $ 2,096,491
Interest income to earning assets 4.10% 4.09% 4.14% 4.18% 4.34%
Net interest spread 3.70% 3.69% 3.71% 3.75% 3.92%
Effect of noninterest-bearing sources 0.11% 0.10% 0.13% 0.12% 0.11%
Tax-equivalent net interest income/ margin on earning assets $ 25,176 3.81% $ 24,925 3.79% $ 19,593 3.84% $ 19,282 3.87% $ 19,552 4.03%
Tax-equivalent adjustment $ 106 0.02 % $ 130 0.02 % $ 106 0.02 % $ 106 0.02 % $ 110 0.02 %
Supplemental Information Regarding Accretion of Fair Value Marks
Accretion of fair value marks on loans $ 1,246 $ 1,127 $ 513 $ 516 $ 941
Accretion of fair value marks on time deposits 205 245 4 6 6
Accretion of fair value marks on borrowings 65 70 30 30 30
Net interest income from fair value marks $ 1,516 $ 1,442 $ 547 $ 552 $ 977
Effect of fair value mark accretion on tax-equivalent net interest margin 0.23% 0.22% 0.11% 0.11% 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
(dollars in thousands)
For The Six Months Ended June 30,
20152014
Average BalanceInterest Income/ ExpenseAverage Rates Earned/ Paid Average BalanceInterest Income/ ExpenseAverage Rates Earned/ Paid
Assets:
Interest-bearing deposits with other banks$ 194,328 239 0.25%$ 69,300 81 0.24%
Federal funds sold - - - - - -
Investment securities available for sale: %
Taxable 322,421 2,520 1.58% 240,404 1,875 1.57%
Tax-exempt 36,184 360 2.01% 36,270 304 1.69%
Investment securities - available for sale 358,605 2,880 1.62% 276,674 2,179 1.59%
Investment securities - trading 3,966 15 0.76% 3,478 24 1.39%
Loans and leases * 2,100,592 50,850 4.88% 1,575,165 39,043 5.00%
Total interest earning assets 2,657,491 53,984 4.10% 1,924,617 41,327 4.33%
Cash and due from banks 17,649 12,184
Less allowance for loan and lease losses (14,605) (15,918)
Other assets 253,873 154,150
Total assets$ 2,914,408 $ 2,075,033
Liabilities:
Savings, NOW and market rate deposits$ 1,238,399 $ 1,169 0.19%$ 955,186 $ 824 0.17%
Wholesale deposits 135,282 383 0.57% 84,402 262 0.63%
Time deposits 270,775 538 0.40% 130,850 316 0.49%
Total interest-bearing deposits 1,644,456 2,090 0.26% 1,170,438 1,402 0.24%
Short-term borrowings 45,038 31 0.14% 15,167 8 0.11%
Long-term FHLB advances and other borrowings 257,963 1,761 1.38% 217,657 1,527 1.41%
Total Borrowings 303,001 1,792 1.19% 232,824 1,535 1.33%
Total interest-bearing liabilities 1,947,457 3,882 0.40% 1,403,262 2,937 0.42%
Noninterest-bearing deposits 557,386 415,810
Other liabilities 34,332 20,948
Total noninterest-bearing liabilities 591,718 436,758
Total liabilities 2,539,175 1,840,020
Shareholders' equity 375,233 235,013
Total liabilities and shareholders' equity$ 2,914,408 $ 2,075,033
Interest income to earning assets 4.10% 4.33%
Net interest spread 3.70% 3.91%
Effect of noninterest-bearing sources 0.10% 0.11%
Tax-equivalent net interest income/ margin on earning assets $ 50,102 3.80% $ 38,390 4.02%
Tax-equivalent adjustment $ 237 0.02% $ 225 0.02%
Supplemental Information Regarding Accretion of Fair Value Marks
Accretion of fair value marks on loans $ 2,373 $ 1,702
Accretion of fair value marks on time deposits 450 13
Accretion of fair value marks on borrowings 135 60
Net interest income from fair value marks $ 2,958 $ 1,775
Effect of fair value mark accretion on tax-equivalent net interest margin 0.22% 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
June 30,March 31,December 31,September 30,June 30,
2015 2015 2014 2014 2014
Asset Quality Data
Nonaccrual loans and leases$ 8,996 $ 9,130 $ 10,096 $ 8,336 $ 8,388
90 days or more past due loans, still accruing - - - - -
Nonperforming loans and leases 8,996 9,130 10,096 8,336 8,388
Other real estate owned 843 1,532 1,147 894 853
Total nonperforming assets$ 9,839 $ 10,662 $ 11,243 $ 9,230 $ 9,241
Troubled debt restructurings included in nonperforming assets$ 3,960 $ 4,217 $ 4,315 $ 1,725 $ 1,597
Troubled debt restructurings in compliance with modified terms 4,078 4,145 4,157 6,913 7,487
Total troubled debt restructurings$ 8,038 $ 8,362 $ 8,472 $ 8,638 $ 9,084
Nonperforming loans and leases / portfolio loans & leases 0.42% 0.44% 0.61% 0.51% 0.52%
Nonperforming assets / total assets 0.33% 0.36% 0.50% 0.43% 0.43%
Net loan and lease charge-offs / average loans and leases (annualized) 0.04% 0.16% 0.17% 0.10% 0.05%
Delinquency rate* - Performing and nonperforming loans and leases 30 days or more past due 0.58% 0.51% 0.50% 0.48% 0.64%
Performing loans and leases - 30-89 days past due$ 5,233 $ 3,361 $ 2,232 $ 1,739 $ 3,743
Delinquency rate* - Performing loans and leases - 30-89 days past due 0.24% 0.16% 0.13% 0.11% 0.23%
* as a percentage of total loans and leases
Changes in the allowance for loan and lease losses:
Balance, beginning of period$ 14,296 $ 14,586 $ 15,599 $ 15,470 $ 15,770
Charge-offs (312) (928) (864) (493) (304)
Recoveries 125 69 167 72 104
Net charge-offs (187) (859) (697) (421) (200)
Provision for loan and lease losses 850 569 (316) 550 (100)
Balance, end of period$ 14,959 $ 14,296 $ 14,586 $ 15,599 $ 15,470
Total Allowance / Total Portfolio loans and leases 0.69% 0.68% 0.88% 0.95% 0.96%
Allowance on originated loans and leases / Originated loans and leases (a non-GAAP measure) 0.88% 0.90% 0.94% 1.01% 1.01%
(Total Allowance + Loan mark) / Total Gross portfolio loans and leases (a non-GAAP measure) 1.60% 1.61% 1.27% 1.36% 1.42%
Total Allowance / nonperforming loans and leases 166.3% 156.6% 144.5% 187.1% 184.4%
Supplemental Loan and Allowance Information Used to Calculate Non-GAAP Measures
Total Allowance$ 14,959 $ 14,296 $ 14,586 $ 15,599 $ 15,470
less: Allowance on acquired loans 22 125 86 273 479
Allowance on originated loans and leases$ 14,937 $ 14,171 $ 14,500 $ 15,326 $ 14,991
Total Allowance$ 14,959 $ 14,296 $ 14,586 $ 15,599 $ 15,470
Loan mark on acquired loans 19,816 19,708 6,422 6,932 7,510
Total Allowance + Loan mark$ 34,775 $ 34,004 $ 21,008 $ 22,531 $ 22,980
Total Portfolio loans and leases$ 2,153,263 $ 2,088,532 $ 1,652,257 $ 1,645,238 $ 1,615,542
less: Originated loans and leases 1,692,041 1,571,377 1,535,003 1,516,104 1,479,526
Net acquired loans$ 461,222 $ 517,155 $ 117,254 $ 129,134 $ 136,016
add: Loan mark on acquired loans 19,816 19,708 6,422 6,932 7,510
Gross acquired loans (excludes loan mark)$ 481,038 $ 536,863 $ 123,676 $ 136,066 $ 143,526
Originated loans and leases 1,692,041 1,571,377 1,535,003 1,516,104 1,479,526
Total Gross portfolio loans and leases$ 2,173,079 $ 2,108,240 $ 1,658,679 $ 1,652,170 $ 1,623,052
For The Three Months Ended or As Of
June 30,March 31,December 31,September 30,June 30,
2015 2015 2014 2014 2014
Selected ratios (annualized):
Return on average assets 1.12% 1.04% 1.28% 1.21% 1.45%
Return on average shareholders' equity 8.59% 8.19% 11.23% 10.58% 12.80%
Return on average tangible equity (2) 13.02% 12.36% 14.71% 13.35% 16.31%
Tax-equivalent yield on loans and leases 4.85% 4.91% 4.79% 4.81% 5.00%
Tax-equivalent yield on interest-earning assets 4.10% 4.09% 4.14% 4.18% 4.34%
Cost of interest-bearing funds 0.40% 0.40% 0.43% 0.43% 0.42%
Tax-equivalent net interest margin 3.81% 3.79% 3.84% 3.87% 4.03%
Book value per share$ 21.43 $ 21.26 $ 17.83 $ 18.03 $ 17.74
Tangible book value per share$ 14.08 $ 14.05 $ 13.59 $ 14.37 $ 14.03
Shares outstanding at end of period 17,786,293 17,777,628 13,769,336 13,730,581 13,719,337
Selected data:
Mortgage loans originated$ 63,285 $ 35,728 $ 29,929 $ 29,861 $ 39,575
Residential mortgage loans sold - servicing retained$ 28,204 $ 24,569 $ 14,382 $ 16,237 $ 15,154
Residential mortgage loans sold - servicing released 9,257 2,644 92 539 -
Total residential mortgage loans sold$ 37,461 $ 27,213 $ 14,474 $ 16,776 $ 15,154
Yield on residential mortgage loans sold 2.08% 2.97% 3.25% 2.62% 3.54%
Residential mortgage loans serviced for others$ 595,440 $ 591,989 $ 590,659 $ 594,156 $ 594,660
Total wealth assets under management, administration, supervision and brokerage (1)$ 8,536,024 $ 7,816,441 $ 7,699,908 $ 7,580,779 $ 7,569,842
(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.
Selected ratios (annualized): 2015 2014
Return on average assets 1.08% 1.45%
Return on average shareholders' equity 8.39% 13.59%
Return on average tangible equity (1) 12.66% 17.97%
Tax-equivalent yield on loans and leases 4.88% 5.00%
Tax-equivalent yield on interest-earning assets 4.10% 4.33%
Cost of interest-bearing liabilities 0.40% 0.42%
Tax-equivalent net interest margin 3.80% 4.02%
Selected data:
Residential mortgage loans originated$ 99,013 $ 57,467
Residential mortgage loans sold - servicing retained$ 52,773 $ 24,240
Residential mortgage loans sold - servicing released 11,901 152
Total residential mortgage loans sold$ 64,674 $ 24,392
(1) Average tangible equity equals average shareholders' equity minus average goodwill and average other intangible assets.
Investment Portfolio - Available for SaleAs of June 30, 2015 As of December 31, 2014
Net Net
AmortizedFairUnrealized AmortizedFairUnrealized
SECURITY DESCRIPTIONCostValueGain / (Loss) CostValueGain/ (Loss)
U.S. Treasury securities$ 101 $ 101 $ - $ 102 $ 100 $ (2)
Obligations of the U.S. Government and agencies 92,943 93,125 182 66,881 66,762 (119)
State & political subdivisions - tax-free 40,918 40,967 49 28,955 29,045 90
State & political subdivisions - taxable 350 351 1 - - -
Mortgage-backed securities 159,741 161,283 1,542 79,498 81,382 1,884
Collateralized mortgage obligations 35,871 36,094 223 34,618 34,797 179
Other debt securities 1,900 1,894 (6) 1,900 1,900 -
Bond mutual funds 11,956 11,920 (36) 11,956 11,835 (121)
Other investments 3,650 3,761 111 3,643 3,756 113
Total investment portfolio available for sale$ 347,430 $ 349,496 $ 2,066 $ 227,553 $ 229,577 $ 2,024
Capital Ratios
Regulatory Minimum
To BeJune 30,March 31,December 31,September 30,June 30,
Bryn Mawr Trust CompanyWell Capitalized 2015 2015 2014 2014 2014
Tier I capital to risk weighted assets ("RWA") 8.00% 12.26% 12.38% 11.32% 11.60% 11.68%
Total (Tier II) capital to RWA 10.00% 12.93% 13.05% 12.19% 12.54% 12.62%
Tier I leverage ratio 5.00% 9.77% 9.52% 8.98% 9.39% 9.51%
Tangible equity ratioN/A 8.54% 8.42% 8.19% 9.21% 9.18%
Common equity Tier I capital to RWA 4.50% 12.26% 12.38%N/AN/AN/A
Bryn Mawr Bank Corporation
Tier I capital to RWA 8.00% 12.77% 12.63% 12.00% 12.05% 11.85%
Total (Tier II) capital to RWA 10.00% 13.44% 13.30% 12.87% 12.99% 12.79%
Tier I leverage ratio 5.00% 10.20% 9.77% 9.43% 9.77% 9.67%
Tangible equity ratioN/A 8.88% 8.87% 8.61% 9.58% 9.32%
Common equity Tier I capital to RWA 4.50% 12.77% 12.63%N/AN/AN/A



FOR MORE INFORMATION CONTACT: Frank Leto, President, CEO 610-581-4730 David Takats, CFO 610-581-4801

Source:Bryn Mawr Bank Corporation