×

Bryn Mawr Bank Corporation Reports Second Quarter Net Income of $8.9 Million, Driven by Increases to Net Interest Income, Wealth Management Revenue, Reduced Provision; Quarterly Dividend Increased by 5%

BRYN MAWR, Pa., July 21, 2016 (GLOBE NEWSWIRE) -- Bryn Mawr Bank Corporation (NASDAQ:BMTC) (the “Corporation”), parent of The Bryn Mawr Trust Company (the “Bank”), today reported net income of $8.9 million and diluted earnings per share of $0.52 for the three months ended June 30, 2016, as compared to $8.3 million, or $0.49 diluted earnings per share for the three months ended March 31, 2016 and $8.1 million, or $0.45 diluted earnings per share for the three months ended June 30, 2015.

On a non-GAAP basis, core net income, which excludes certain non-core income and expense items, as detailed in the appendix to this earnings release, was also $8.9 million, or $0.53 diluted earnings per share for the three months ended June 30, 2016 as compared to $8.3 million, or $0.49 diluted earnings per share for the three months ended March 31, 2016 and $9.0 million, or $0.50 diluted earnings per share for the three months ended June 30, 2015. Management believes the core net income measure is important in evaluating the Corporation’s performance on a more comparable basis between periods. A reconciliation of this and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release.

“The results for the second quarter are promising, with the full effect of the first quarter loan growth having a significant impact on our net interest income,” commented Frank Leto, President and Chief Executive Officer, continuing, “in addition, our credit quality continues to be strong, with low charge-off and delinquency levels which are reflected in the reduced provision recorded this quarter.” Mr. Leto added, “As we saw in the first quarter of this year, we continue to experience the positive results stemming from the strategic decisions we made in 2015. We are beginning to reap the benefits of our significant investment in new technology, and the addition of new teams and talent to the organization.”

On July 21, 2016, the Board of Directors of the Corporation elected to increase the quarterly dividend by 5%, declaring a quarterly dividend of $0.21 per share, payable September 1, 2016 to shareholders of record as of August 2, 2016.

SIGNIFICANT ITEMS OF NOTE
Results of Operations – Second Quarter 2016 Compared to First Quarter 2016

  • Net income for the three months ended June 30, 2016 was $8.9 million, as compared to $8.3 million for the three months ended March 31, 2016. Largely accounting for the increase in net income was a $725 thousand increase in net interest income, a $965 thousand decrease in provision for loan and lease losses (the “Provision”) and a $599 thousand increase in fees for wealth management services between the periods. Partially offsetting these items were a $431 thousand decrease in insurance revenue, a $516 thousand increase in impairment of mortgage servicing rights (“MSRs”), and a $459 thousand increase in salaries and wages.
  • Net interest income for the three months ended June 30, 2016 was $26.6 million, an increase of $725 thousand from $25.9 million for the three months ended March 31, 2016. Portfolio loan balances as of June 30, 2016 increased by $45.0 million from March 31, 2016, however, the average balance of portfolio loans for the three months ended June 30, 2016 increased $101.7 million from the three months ended March 31, 2016, indicating that the loan growth during the first quarter of 2016 was weighted more toward the end of the quarter. Partially funding this growth in portfolio loans was an $83.6 million increase, during the second quarter of 2016, in average interest-bearing deposits, largely concentrated in the retail time deposit segment of the deposit portfolio.
  • The tax-equivalent net interest margin of 3.81% for the second quarter of 2016 decreased 6 basis points from 3.87% for the first quarter of 2016. The decrease was the result of a 4 basis point decrease in tax-equivalent yield earned on loans, coupled with increases in the tax-equivalent rates paid on interest-bearing deposits and borrowings of 7 basis points and 4 basis points, respectively. The contribution of fair value mark accretion to the tax equivalent net interest margin accounted for 17 basis points of the margin for the second quarter of 2016 as compared to 16 basis points for the first quarter of 2016.
  • Non-interest income for the three months ended June 30, 2016 increased $612 thousand from the first quarter of 2016. The increase was related to increases of $599 thousand and $136 thousand in fees for wealth management services and gain on sale of loans, respectively. Fees for wealth management services increased largely as a result of a rebound, during the second quarter, of the asset balances in wealth accounts whose fees are tied to market values. In addition, fees for tax services charged during the second quarter augmented this growth. Further, the gain on sale of loans increased as the mortgage banking strategic initiative continues to build. Partially offsetting these increases was a decrease of $431 thousand in insurance revenues. During the first quarter of 2016, the insurance division received a $434 thousand contingent commission from the insurance carriers which was not repeated in the second quarter of 2016.
  • Non-interest expense for the three months ended June 30, 2016 increased $1.2 million, to $26.3 million, as compared to $25.1 million for the first quarter of 2016. Largely contributing to the increase was the $516 thousand increase in impairment of MSRs recorded during the second quarter. This impairment was the result of increased expectations for the continuation of the low interest rate environment, partially driven by international events, which caused interest rates to fall at the end of the quarter. In addition, salaries and wages increased by $459 thousand from the first quarter of 2016, largely due to incentive accruals.
  • For the three months ended June 30, 2016, net loan and lease charge-offs totaled $254 thousand, as compared to $422 thousand for the first quarter of 2016. The Provision for the three months ended June 30, 2016 was $445 thousand, as compared to $1.4 million for the first quarter of 2016. As of June 30, 2016, certain metrics related to the credit quality of the loan portfolio, which included delinquency and nonperforming percentages, had improved from levels seen at March 31, 2016, resulting in a lower level of allowance for loan and lease losses (the “Allowance”).

Results of Operations – Second Quarter 2016 Compared to Second Quarter 2015

  • Net income for the three months ended June 30, 2016 was $8.9 million, or $0.52 diluted earnings per share, as compared to $8.1 million, or $0.45 diluted earnings per share for the same period in 2015. Significantly contributing to the increase in net income was a $1.6 million increase in net interest income, a $1.3 million reduction in due diligence, merger-related and merger integration costs, and a $405 thousand decrease in the Provision. Partially offsetting these improvements was a $621 thousand increase in impairment of MSRs, a $169 thousand decrease in fees for wealth management services and increases of $1.1 million and $407 thousand in salaries and wages and furniture, fixtures and equipment expense, respectively. In addition to the effect of the increase in net income, the $0.07 increase in diluted earnings per share was also partially the result of the share repurchase which occurred between June 30, 2015 and June 30, 2016.
  • Net interest income for the three months ended June 30, 2016 was $26.6 million, an increase of $1.6 million, or 6.2%, from $25.0 million for the same period in 2015. The increase in net interest income was largely related to the growth in average loan balances between the periods. Average loans and leases for the three months ended June 30, 2016 increased by $294.5 million from the same period in 2015. The increase in average loan balances was offset by a 22 basis point decrease in tax-equivalent yield earned on loans and leases. The net effect of the yield decrease and volume increase on average loans and leases was a $2.1 million increase in interest income on loans. On the liability side, an $88.5 million increase in average interest-bearing deposits and a $13.4 million increase in average borrowings resulted in a $736 thousand increase in interest expense between the periods. The tax-equivalent rate paid on deposits increased 7 basis points while that of borrowings increased by 49 basis points.
  • The tax-equivalent net interest margin of 3.81% for the three months ended June 30, 2016 was unchanged from the same period in 2015. The contribution of fair value mark accretion to the tax equivalent net interest margin accounted for 17 basis points of the margin for the second quarter of 2016 as compared to 23 basis points for the second quarter of 2015.
  • Non-interest income for the three months ended June 30, 2016 decreased $357 thousand as compared to the same period in 2015. Contributing to this decrease was a $169 thousand decrease in fees for wealth management services. In addition, decreases of $75 thousand and $58 thousand in gain on sale of OREO and loan servicing and other fees, respectively, also contributed to the decrease between periods. Partially offsetting these decreases was a $118 thousand increase in gain on sale of loans.
  • Non-interest expense for the three months ended June 30, 2016 increased $277 thousand, to $26.3 million, as compared to $26.0 million for the same period in 2015. Factors contributing to the increase were the $1.1 million increase in salaries and wages which were related to staff additions, incentive accruals and annual increases, a $621 thousand increase in impairment of MSRs related to the quarter-end market interest rate drop, which affected prepayment speeds, and a $407 thousand increase in furniture, fixtures and equipment expense, primarily related to the depreciation of the infrastructure improvements which were completed in 2015. Partially offsetting these increases was a $1.3 million decrease in due diligence, merger-related and merger integration costs.
  • The Provision for the three months ended June 30, 2016 of $445 thousand was a $405 thousand decrease from the same period in 2015. Although net loan and lease charge-offs for the second quarter of 2016 increased by $68 thousand from the same period in 2015, certain metrics related to the credit quality of the loan portfolio, which included delinquency and nonperforming percentages, improved as of June 30, 2016 as compared to June 30, 2015, resulting in a lower level of Allowance.

Financial Condition – June 30, 2016 Compared to December 31, 2015

  • Total portfolio loans and leases of $2.42 billion as of June 30, 2016 increased by $154.8 million, or 6.8%, from December 31, 2015. Loan growth was concentrated in the commercial mortgage, commercial and industrial, and construction categories, which increased $91.7 million, $14.2 million and $42.9 million, respectively, since December 31, 2015.
  • The Allowance as of June 30, 2016 was $17.0 million, or 0.70% of portfolio loans as compared to $15.9 million, or 0.70% of portfolio loans and leases, as of December 31, 2015. In addition to the ratio of Allowance to portfolio loans, management also calculates two non-GAAP measures: the Allowance as a percentage of originated loans and leases, which was 0.81% as of June 30, 2016, as compared to 0.84% as of December 31, 2015, and the Allowance plus the remaining loan mark as a percentage of gross loans, which was 1.30% as of June 30, 2016, as compared to 1.44% as of December 31, 2015. A reconciliation of these and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release.
  • Available for sale investment securities as of June 30, 2016 were $365.5 million, an increase of $16.5 million from December 31, 2015. Increases of $34.6 million in mortgage-related securities were partially offset by decreases of $15.4 million in U.S. government securities and $2.4 million in municipal obligations.
  • Total assets as of June 30, 2016 were $3.09 billion, an increase of $59.1 million from December 31, 2015. Increases in loans and leases and available for sale investment securities were partially offset by reductions in interest-bearing deposits with banks, which decreased by $104.1 million.
  • Wealth assets under management, administration, supervision and brokerage totaled $9.63 billion as of June 30, 2016, an increase of $1.27 billion, or 15.2%, from December 31, 2015. Despite this growth in assets, income related to these services grew only 4.9%, as more of the portfolio was comprised of assets held in lower-yielding fixed-fee accounts. Although the balances of wealth accounts whose fees are tied to their asset values are decreasing relative to the balances of fixed-fee accounts due to the strong growth of the latter, the growth in balances in the market-based accounts has been muted, in part, due to normal attrition of funds from these accounts, primarily through beneficiary spending, offsetting very solid new business development and strong account retention.
  • Deposits of $2.41 billion as of June 30, 2016 increased $157.0 million from December 31, 2015. Noninterest-bearing deposits increased by $62.5 million, retail time deposits and savings deposits increased by $49.8 million and $30.6 million, respectively, and wholesale time deposits increased by $60.1 million. These increases were partially offset by a $31.6 million decrease in money market accounts.
  • The capital ratios for the Bank and the Corporation, as of June 30, 2016, as shown in the attached tables, indicate levels well above the regulatory minimum to be considered “well capitalized.” At the Bank level, all capital ratios have increased from their December 31, 2015 levels, primarily due to increases in retained earnings, other comprehensive income and the $15.0 million capital infusion received from the Corporation in the first quarter of 2016. At the Corporation level, most capital levels remain below their December 31, 2015 levels largely due to asset growth, although most have increased from the March 31, 2016 levels.

EARNINGS CONFERENCE CALL
After discussions with many of our investors and other interested parties, the Corporation has decided to discontinue the practice of conducting the earnings conference calls beginning next quarter. As always, we will continue to be available to answer questions through our investor relations department which is listed on our website.

The Corporation will hold its second quarter 2016 earnings conference call at 8:30 a.m. Eastern Time on Friday, July 22, 2016. 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 5, 2016. The recorded replay may be accessed by dialing (toll-free) 1-877-344-7529 (international (toll) 1-412-317-0088). The conference number is 10089216.

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 website. To access the call, please visit the website at http://services.choruscall.com/links/bmtc160722. 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,” “indicate,” “estimate,” “target,” “potentially,” “promising,” “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 acquired businesses with the Corporation’s 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
Summary Financial Information (unaudited)
(dollars in thousands, except per share data)
As of or For the Three Months Ended For the Six Months Ended
June 30, 2016 March 31, 2016 December 31, 2015 September 30, 2015 June 30, 2015 June 30, 2016 June 30, 2015
Consolidated Balance Sheet (selected items)
Interest-bearing deposits with banks$ 20,481 $ 33,954 $ 124,615 $ 100,980 $ 156,282
Investment securities (AFS, HTM and Trading) 371,906 369,461 352,916 344,872 353,525
Loans held for sale 11,882 7,807 8,987 8,721 15,363
Portfolio loans and leases 2,423,821 2,378,841 2,268,988 2,228,764 2,153,263
Allowance for loan and lease losses ("ALLL") (17,036) (16,845) (15,857) (15,935) (14,959)
Goodwill and other intangible assets 126,888 127,777 128,668 129,694 130,631
Total assets 3,090,090 3,058,247 3,030,997 2,952,742 2,950,014
Deposits - interest-bearing 1,720,477 1,700,550 1,626,041 1,634,237 1,624,257
Deposits - non-interest-bearing 689,214 643,492 626,684 605,607 636,390
Short-term borrowings 19,119 37,010 94,167 24,264 26,406
Long-term FHLB advances and other borrowings 224,802 249,832 254,863 254,893 244,923
Subordinated notes 29,505 29,491 29,479 29,466 -
Total liabilities 2,717,623 2,693,070 2,665,286 2,584,587 2,568,916
Shareholders' equity 372,467 365,177 365,711 368,155 381,098
Average Balance Sheet (selected items)
Interest-bearing deposits with banks$ 44,950 $ 39,050 $ 90,832 $ 165,723 $ 182,099 $ 42,000 $ 194,328
Investment securities (AFS, HTM and Trading) 371,153 360,957 354,239 356,028 351,080 366,055 362,571
Loans held for sale 7,844 5,481 7,531 10,527 6,735 6,662 5,111
Portfolio loans and leases 2,404,799 2,303,103 2,240,189 2,181,125 2,111,371 2,353,951 2,095,481
Total interest-earning assets 2,828,746 2,708,591 2,692,791 2,713,403 2,651,285 2,768,668 2,657,491
Goodwill and intangible assets 127,402 128,296 129,292 130,241 129,116 127,849 126,568
Total assets 3,089,953 2,973,148 2,959,011 2,981,308 2,910,701 3,031,550 2,914,408
Deposits - interest-bearing 1,717,252 1,633,651 1,611,574 1,644,976 1,628,759 1,675,451 1,644,456
Short-term borrowings 32,328 34,158 26,092 28,166 34,980 33,243 45,038
Long-term FHLB advances and other borrowings 236,248 250,015 254,880 248,606 249,678 243,131 257,963
Subordinated notes 29,496 29,482 29,471 18,190 - 29,489 -
Total interest-bearing liabilities 2,015,324 1,947,306 1,922,017 1,939,938 1,913,417 1,981,314 1,947,457
Total liabilities 2,723,838 2,612,276 2,593,651 2,604,704 2,531,547 2,668,056 2,539,175
Shareholders' equity 366,115 360,872 365,360 376,604 379,154 363,494 375,233
Income Statement
Net interest income$ 26,627 $ 25,902 $ 25,429 $ 24,833 $ 25,070 $ 52,529 $ 49,865
Provision for loan and lease losses 445 1,410 1,777 1,200 850 1,855 1,419
Noninterest income 13,820 13,208 13,668 13,350 14,177 27,028 28,942
Noninterest expense 26,259 25,051 46,951 25,403 25,982 51,310 53,411
Income tax expense (benefit) 4,823 4,375 (3,276) 4,084 4,296 9,198 8,364
Net income (loss) 8,920 8,274 (6,355) 7,496 8,119 17,194 15,613
Basic earnings per share 0.53 0.49 (0.37) 0.43 0.46 1.02 0.89
Diluted earnings per share 0.52 0.49 (0.37) 0.42 0.45 1.01 0.87
Net income (core) (1) 8,948 8,284 7,506 8,241 8,958 17,232 17,891
Basic earnings per share (core) (1) 0.53 0.49 0.44 0.47 0.51 1.02 1.01
Diluted earnings per share (core) (1) 0.53 0.49 0.44 0.46 0.50 1.02 1.00
Cash dividends paid per share 0.20 0.20 0.20 0.20 0.19 0.40 0.38
Profitability Indicators
Return on average assets 1.16% 1.12% -0.86% 1.01% 1.12% 1.14% 1.08%
Return on average equity 9.80% 9.22% -7.00% 8.01% 8.61% 9.51% 8.39%
Return on tangible equity (1) 16.00% 15.31% -9.36% 13.25% 14.06% 15.66% 13.68%
Tax-equivalent net interest margin 3.81% 3.87% 3.77% 3.65% 3.81% 3.84% 3.80%
Efficiency ratio (1) 62.66% 61.75% 63.09% 60.97% 60.48% 62.21% 60.46%
Mortgage Banking Information
Mortgage loans originated$ 64,893 $ 52,532 $ 55,867 $ 76,169 $ 63,285 $ 117,425 $ 57,467
Residential mortgage loans sold - servicing retained 26,944 25,965 24,063 30,515 28,204 52,909 24,240
Residential mortgage loans sold - servicing released 5,279 2,397 7,150 10,579 9,257 7,676 152
Total residential mortgage loans sold$ 32,223 $ 28,362 $ 31,213 $ 41,094 $ 37,461 $ 60,585 $ 24,392
Residential mortgage loans serviced for others$ 610,418 $ 605,366 $ 601,939 $ 601,999 $ 595,440
Share Data
Closing share price$ 29.20 $ 25.73 $ 28.72 $ 31.07 $ 30.16
Book value per common share$ 21.76 $ 21.48 $ 21.40 $ 21.94 $ 21.32
Tangible book value per common share$ 14.60 $ 14.13 $ 13.89 $ 13.89 $ 14.08
Price / book value 134.19% 119.80% 134.19% 141.62% 141.48%
Price / tangible book value 200.05% 182.10% 206.84% 223.67% 214.17%
Weighted average diluted shares outstanding 17,025,037 16,883,193 17,129,234 17,834,298 18,054,663 16,954,116 17,979,426
Shares outstanding, end of period 16,824,564 16,801,801 17,071,523 17,166,323 17,786,293
Wealth Management Information:
Wealth assets under mgmt, administration, supervision and brokerage (2)$ 9,632,521 $ 9,281,743 $ 8,364,805 $ 8,218,276 $ 8,536,024
Fees for wealth management services$ 9,431 $ 8,832 $ 8,995 $ 9,194 $ 9,600
Capital Ratios
Bryn Mawr Trust Company
Tier I capital to risk weighted assets ("RWA") 10.94% 10.69% 10.12% 11.96% 12.04%
Total (Tier II) capital to RWA 11.65% 11.39% 10.78% 12.64% 12.71%
Tier I leverage ratio 9.06% 9.15% 8.51% 9.75% 9.77%
Tangible equity ratio (1) 8.79% 8.53% 7.74% 8.84% 8.77%
Common equity Tier I capital to RWA 10.94% 10.69% 10.12% 11.96% 12.04%
Bryn Mawr Bank Corporation
Tier I capital to RWA 10.45% 10.22% 10.72% 11.56% 12.55%
Total (Tier II) capital to RWA 12.35% 12.13% 12.61% 13.50% 13.21%
Tier I leverage ratio 8.65% 8.76% 9.02% 9.44% 10.20%
Tangible equity ratio (1) 8.29% 8.10% 8.17% 8.45% 9.11%
Common equity Tier I capital to RWA 10.45% 10.22% 10.72% 11.56% 12.55%
Asset Quality Indicators
Net loan and lease charge-offs ("NCO"s)$ 254 $ 422 $ 1,855 $ 224 $ 187 $ 676 $ 1,046
Nonperforming loans and leases ("NPL"s)$ 9,617 $ 9,636 $ 10,244 $ 12,315 $ 8,996
Other real estate owned ("OREO") 784 756 2,638 1,010 843
Total nonperforming assets ("NPA"s)$ 10,401 $ 10,392 $ 12,882 $ 13,325 $ 9,839
Nonperforming loans and leases 30 or more days past due$ 5,599 $ 6,193 $ 5,678 $ 8,854 $ 7,302
Performing loans and leases 30 to 89 days past due 3,564 6,296 5,601 4,960 5,233
Performing loans and leases 90 or more days past due - - - - -
Total delinquent loans and leases$ 9,163 $ 12,489 $ 11,279 $ 13,814 $ 12,535
Delinquent loans and leases to total loans and leases 0.38% 0.52% 0.50% 0.62% 0.58%
Delinquent performing loans and leases to total loans and leases 0.15% 0.26% 0.25% 0.22% 0.24%
NCOs / average loans and leases (annualized) 0.04% 0.07% 0.33% 0.04% 0.04% 0.06% 0.10%
NPLs / total portfolio loans and leases 0.40% 0.41% 0.45% 0.55% 0.42%
NPAs / total loans and leases and OREO 0.43% 0.44% 0.56% 0.60% 0.45%
ALLL / NPLs 177.14% 174.81% 154.79% 129.40% 166.29%
ALLL / portfolio loans 0.70% 0.71% 0.70% 0.71% 0.69%
ALLL on originated loans and leases / Originated loans and leases (1) 0.81% 0.83% 0.84% 0.88% 0.88%
(Total Allowance + Loan mark) / Total Gross portfolio loans and leases (1) 1.30% 1.37% 1.44% 1.52% 1.60%
Troubled debt restructurings ("TDR"s) included in NPLs$ 1,779 $ 1,756 $ 1,935 $ 3,711 $ 3,960
TDRs in compliance with modified terms 4,984 4,893 4,880 4,062 4,078
Total TDRs$ 6,763 $ 6,649 $ 6,815 $ 7,773 $ 8,038
(1)Non-GAAP measure - see Appendix for Non-GAAP to GAAP reconciliation.
(2)Brokerage assets represent assets held at a registered broker dealer under a clearing agreement.


Bryn Mawr Bank Corporation
Detailed Balance Sheets (unaudited)
(dollars in thousands)
June 30, 2016 March 31, 2016 December 31, 2015 September 30, 2015 June 30, 2015
Assets
Cash and due from banks$ 13,710 $ 15,594 $ 18,452 $ 17,161 $ 20,258
Interest-bearing deposits with banks 20,481 33,954 124,615 100,980 156,282
Cash and cash equivalents 34,191 49,548 143,067 118,141 176,540
Investment securities, available for sale 365,470 365,819 348,966 341,421 349,496
Investment securities, held to maturity 2,915 - - - -
Investment securities, trading 3,521 3,642 3,950 3,451 4,029
Loans held for sale 11,882 7,807 8,987 8,721 15,363
Portfolio loans and leases, originated 2,090,070 2,015,683 1,883,869 1,804,834 1,692,027
Portfolio loans and leases, acquired 333,751 363,158 385,119 423,930 461,236
Total portfolio loans and leases 2,423,821 2,378,841 2,268,988 2,228,764 2,153,263
Less: Allowance for losses on originated loan and leases (17,008) (16,817) (15,857) (15,900) (14,937)
Less: Allowance for losses on acquired loan and leases (28) (28) - (35) (22)
Total allowance for loan and lease losses (17,036) (16,845) (15,857) (15,935) (14,959)
Net portfolio loans and leases 2,406,785 2,361,996 2,253,131 2,212,829 2,138,304
Premises and equipment 43,607 44,712 45,339 44,370 43,164
Accrued interest receivable 8,144 8,205 7,869 7,744 7,518
Mortgage servicing rights 4,646 5,182 5,142 5,031 4,970
Bank owned life insurance 38,836 38,616 38,371 38,157 32,941
Federal Home Loan Bank ("FHLB") stock 10,618 12,142 12,942 11,742 11,542
Goodwill 104,765 104,765 104,765 104,338 104,322
Intangible assets 22,123 23,012 23,903 25,356 26,309
Other investments 8,722 8,487 9,460 9,499 9,295
Other assets 23,865 24,314 25,105 21,942 26,221
Total assets$ 3,090,090 $ 3,058,247 $ 3,030,997 $ 2,952,742 $ 2,950,014
Liabilities
Deposits
Noninterest-bearing$ 689,214 $ 643,492 $ 626,684 $ 605,607 $ 636,390
Interest-bearing 1,720,477 1,700,550 1,626,041 1,634,237 1,624,257
Total deposits 2,409,691 2,344,042 2,252,725 2,239,844 2,260,647
Short-term borrowings 19,119 37,010 94,167 24,264 26,406
Long-term FHLB advances and other borrowings 224,802 249,832 254,863 254,893 244,923
Subordinated notes 29,505 29,491 29,479 29,466 -
Accrued interest payable 1,846 1,294 1,851 1,444 1,292
Other liabilities 32,660 31,401 32,201 34,676 35,648
Total liabilities 2,717,623 2,693,070 2,665,286 2,584,587 2,568,916
Shareholders' equity
Common stock 20,972 20,949 20,931 20,854 20,848
Paid-in capital in excess of par value 230,311 229,479 228,814 226,980 225,837
Less: common stock held in treasury, at cost (66,200) (66,140) (58,144) (53,000) (34,346)
Accumulated other comprehensive income (loss), net of tax 2,488 1,502 (412) (11,040) (11,634)
Retained earnings 184,896 179,387 174,522 184,361 180,393
Total shareholders equity 372,467 365,177 365,711 368,155 381,098
Total liabilities and shareholders' equity$ 3,090,090 $ 3,058,247 $ 3,030,997 $ 2,952,742 $ 2,950,014


Bryn Mawr Bank Corporation
Supplemental Balance Sheet Information (unaudited)
(dollars in thousands)
Portfolio Loans and Leases as of
June 30, 2016 March 31, 2016 December 31, 2015 September 30, 2015 June 30, 2015
Commercial mortgages$ 1,055,934 $ 1,044,415 $ 964,259 $ 971,983 $ 924,161
Home equity loans and lines 202,989 205,896 209,473 212,258 211,982
Residential mortgages 414,863 412,006 406,404 399,730 381,323
Construction 133,313 119,193 90,421 82,820 88,122
Total real estate loans 1,807,099 1,781,510 1,670,557 1,666,791 1,605,588
Commercial & Industrial 538,684 523,053 524,515 488,977 472,702
Consumer 21,561 21,427 22,129 22,350 25,123
Leases 56,477 52,851 51,787 50,646 49,850
Total non-real estate loans and leases 616,722 597,331 598,431 561,973 547,675
Total portfolio loans and leases$ 2,423,821 $ 2,378,841 $ 2,268,988 $ 2,228,764 $ 2,153,263
Nonperforming Loans and Leases as of
June 30, 2016 March 31, 2016 December 31, 2015 September 30, 2015 June 30, 2015
Commercial mortgages$ 139 $ 872 $ 829 $ 931 $ 592
Home equity loans and lines 3,011 1,953 2,027 1,661 1,605
Residential mortgages 2,909 2,923 3,212 5,249 5,320
Construction - 12 34 34 139
Total nonperforming real estate loans 6,059 5,760 6,102 7,875 7,656
Commercial & Industrial 3,457 3,822 4,133 4,337 1,283
Consumer 4 - - 2 -
Leases 97 54 9 101 57
Total nonperforming non-real estate loans and leases 3,558 3,876 4,142 4,440 1,340
Total nonperforming portfolio loans and leases$ 9,617 $ 9,636 $ 10,244 $ 12,315 $ 8,996
Net Loan and Lease Charge-Offs (Recoveries) for the Three Months Ended
June 30, 2016 March 31, 2016 December 31, 2015 September 30, 2015 June 30, 2015
Commercial mortgage$ (3) $ 107 $ (4) $ - $ 48
Home equity loans and lines 11 71 561 (21) 11
Residential 262 (35) 239 11 43
Construction (62) - (1) (1) (1)
Total net charge-offs (recoveries) of real estate loans 208 143 795 (11) 101
Commercial & Industrial (44) 25 902 38 (10)
Consumer 30 20 55 26 35
Leases 60 234 103 171 61
Total net charge-offs of non-real estate loans and leases 46 279 1,060 235 86
Total net charge-offs$ 254 $ 422 $ 1,855 $ 224 $ 187


Bryn Mawr Bank Corporation
Supplemental Balance Sheet Information (unaudited)
(dollars in thousands)
Investment Securities Available for Sale, at Fair Value
June 30, 2016 March 31, 2016 December 31, 2015 September 30, 2015 June 30, 2015
U.S. Treasury securities $ 102 $ 102 $ 101 $ 102 $ 101
Obligations of the U.S. Government and agencies 86,134 96,080 101,495 91,639 93,125
State & political subdivisions - tax-free 39,047 39,502 41,442 43,388 40,967
State & political subdivisions - taxable 532 1,093 524 742 351
Mortgage-backed securities 186,354 183,127 158,689 155,509 161,283
Collateralized mortgage obligations 36,702 29,106 29,799 32,953 36,094
Other debt securities 1,450 1,700 1,691 1,896 1,894
Bond mutual funds 11,774 11,725 11,810 11,798 11,920
Other investments 3,375 3,384 3,415 3,394 3,761
Total$ 365,470 $ 365,819 $ 348,966 $ 341,421 $ 349,496
Unrealized Gain (Loss) on Investment Securities Available for Sale
June 30, 2016 March 31, 2016 December 31, 2015 September 30, 2015 June 30, 2015
U.S. Treasury securities $ 1 $ 1 $ - $ 1 $ -
Obligations of the U.S. Government and agencies 1,183 984 153 712 182
State & political subdivisions - tax-free 240 173 75 153 49
State & political subdivisions - taxable 8 18 (1) 2 1
Mortgage-backed securities 3,958 3,026 1,267 2,591 1,542
Collateralized mortgage obligations 496 330 43 339 223
Other debt securities - - (9) (4) (6)
Bond mutual funds (182) (231) (146) (158) (36)
Other investments (66) (155) (192) (193) 111
Total$ 5,638 $ 4,146 $ 1,190 $ 3,443 $ 2,066
Deposits
June 30, 2016 March 31, 2016 December 31, 2015 September 30, 2015 June 30, 2015
Interest-bearing deposits:
Interest-bearing checking$ 333,425 $ 335,240 $ 338,861 $ 330,683 $ 328,606
Money market 718,144 773,637 749,726 748,983 699,264
Savings 217,877 190,477 187,299 192,995 189,120
Wholesale non-maturity deposits 58,690 62,454 67,717 65,636 65,365
Wholesale time deposits 113,274 131,145 53,185 57,671 67,894
Retail time deposits 279,067 207,597 229,253 238,269 274,008
Total interest-bearing deposits 1,720,477 1,700,550 1,626,041 1,634,237 1,624,257
Noninterest-bearing deposits 689,214 643,492 626,684 605,607 636,390
Total deposits$ 2,409,691 $ 2,344,042 $ 2,252,725 $ 2,239,844 $ 2,260,647


Bryn Mawr Bank Corporation
Detailed Income Statements (unaudited)
(dollars in thousands, except per share data)
For the Three Months Ended For the Six Months Ended
June 30, 2016 March 31, 2016 December 31, 2015 September 30, 2015 June 30, 2015 June 30, 2016 June 30, 2015
Interest income:
Interest and fees on loans and leases$ 27,679 $ 26,696 $ 26,080 $ 25,620 $ 25,568 $ 54,375 $ 50,732
Interest on cash and cash equivalents 42 46 63 107 124 88 239
Interest on investment securities: 1,565 1,527 1,623 1,302 1,301 3,092 2,776
Total interest income 29,286 28,269 27,766 27,029 26,993 57,555 53,747
Interest expense:
Interest on deposits 1,402 1,076 1,046 1,076 1,062 2,478 2,090
Interest on short-term borrowings 20 17 9 8 10 37 31
Interest on FHLB advances and other borrowings 867 908 912 881 851 1,775 1,761
Interest on subordinated notes 370 366 370 231 - 736 -
Total interest expense 2,659 2,367 2,337 2,196 1,923 5,026 3,882
Net interest income 26,627 25,902 25,429 24,833 25,070 52,529 49,865
Provision for loan and lease losses (the "Provision") 445 1,410 1,777 1,200 850 1,855 1,419
Net interest income after Provision 26,182 24,492 23,652 23,633 24,220 50,674 48,446
Noninterest income:
Fees for wealth management services 9,431 8,832 8,995 9,194 9,600 18,263 18,705
Insurance revenue 845 1,276 842 1,065 817 2,121 1,838
Service charges on deposits 713 702 742 721 752 1,415 1,464
Loan servicing and other fees 539 492 502 397 597 1,031 1,188
Net gain on sale of loans 896 760 751 685 778 1,656 1,586
Net (loss) gain on sale of investment securities available for sale (43) (15) 58 60 3 (58) 813
Net (loss) gain on sale of other real estate owned - (76) 33 - 75 (76) 90
Dividends on FHLB and FRB stocks 263 214 330 138 299 477 914
Other operating income 1,176 1,023 1,415 1,090 1,256 2,199 2,344
Total noninterest income 13,820 13,208 13,668 13,350 14,177 27,028 28,942
Noninterest expense:
Salaries and wages 12,197 11,738 11,700 10,941 11,064 23,935 21,934
Employee benefits 2,436 2,485 2,268 2,590 2,618 4,921 5,347
Loss on pension termination - - 17,377 - - - -
Occupancy and bank premises 2,367 2,488 2,474 2,557 2,808 4,855 5,274
Branch lease termination expense - - 929 - - - -
Furniture, fixtures and equipment 1,895 1,919 2,129 1,712 1,488 3,814 3,000
Advertising 372 284 656 410 479 656 1,036
Amortization of intangible assets 889 891 937 953 955 1,780 1,937
Impairment of intangible assets - - 387 - - - -
Impairment (recovery) of mortgage servicing rights ("MSRs") 599 83 (17) 36 (22) 682 51
Due diligence, merger-related and merger integration expenses - - 1,860 1,015 1,294 - 3,795
Professional fees 946 813 1,010 843 827 1,759 1,500
Pennsylvania bank shares tax 640 638 (46) 433 433 1,278 866
Information technology 875 1,048 874 1,053 814 1,923 1,516
Other operating expenses 3,043 2,664 4,413 2,860 3,224 5,707 7,155
Total noninterest expense 26,259 25,051 46,951 25,403 25,982 51,310 53,411
Income (loss) before income taxes 13,743 12,649 (9,631) 11,580 12,415 26,392 23,977
Income tax expense (benefit) 4,823 4,375 (3,276) 4,084 4,296 9,198 8,364
Net income (loss)$ 8,920 $ 8,274 $ (6,355) $ 7,496 $ 8,119 $ 17,194 $ 15,613
Per share data:
Weighted average shares outstanding 16,812,219 16,848,202 17,129,234 17,572,421 17,713,794 16,830,211 17,630,263
Dilutive common shares 212,818 34,991 - 261,877 340,869 123,905 349,163
Adjusted weighted average diluted shares 17,025,037 16,883,193 17,129,234 17,834,298 18,054,663 16,954,116 17,979,426
Basic earnings (loss) per common share$ 0.53 $ 0.49 $ (0.37) $ 0.43 $ 0.46 $ 1.02 $ 0.89
Diluted earnings (loss) per common share$ 0.52 $ 0.49 $ (0.37) $ 0.42 $ 0.45 $ 1.01 $ 0.87
Dividend declared per share$ 0.20 $ 0.20 $ 0.20 $ 0.20 $ 0.19 $ 0.40 $ 0.38
Effective tax rate 35.09% 34.59% 34.02% 35.27% 34.60% 34.85% 34.88%


Bryn Mawr Bank Corporation
Tax-Equivalent Net Interest Margin (unaudited)
(dollars in thousands, except per share data)
For The Three Months Ended For The Six Months Ended
June 30, 2016March 31, 2016December 31, 2015September 30, 2015June 30, 2015 June 30, 2016June 30, 2015
(dollars in thousands) Average BalanceInterest Income/ ExpenseAverage Rates Earned/ PaidAverage BalanceInterest Income/ ExpenseAverage Rates Earned/ PaidAverage BalanceInterest Income/ ExpenseAverage Rates Earned/ PaidAverage BalanceInterest Income/ ExpenseAverage Rates Earned/ PaidAverage BalanceInterest Income/ ExpenseAverage Rates Earned/ Paid Average BalanceInterest Income/ ExpenseAverage Rates Earned/ PaidAverage BalanceInterest Income/ ExpenseAverage Rates Earned/ Paid
Assets:
Interest-bearing deposits with other banks $ 44,950 $ 42 0.38%$ 39,050 $ 46 0.47%$ 90,832 $ 63 0.28%$ 165,723 $ 107 0.26%$ 182,099 $ 124 0.27% $ 42,000 $ 88 0.42%$ 194,328 $ 239 0.25%
Investment securities - available for sale:
Taxable 325,893 1,433 1.77% 316,353 1,397 1.78% 307,524 1,432 1.85% 310,582 1,172 1.50% 310,011 1,184 1.53% 321,123 2,838 1.78% 322,421 2,520 1.58%
Tax-exempt 39,193 187 1.92% 40,658 191 1.89% 43,144 195 1.79% 41,424 186 1.78% 37,035 157 1.70% 39,925 378 1.90% 36,184 360 2.01%
Total investment securities - available for sale 365,086 1,620 1.78% 357,011 1,588 1.79% 350,668 1,627 1.84% 352,006 1,358 1.53% 347,046 1,341 1.55% 361,048 3,216 1.79% 358,605 2,880 1.62%
Investment securities - held to maturity 2,427 4 0.66% - - - 0.00% - - - - 1,214 -
Investment securities - trading 3,640 2 0.22% 3,946 2 0.20% 3,571 60 6.67% 4,022 5 0.49% 4,034 11 1.09% 3,793 - 3,966 15 0.76%
Loans and leases * 2,412,643 27,761 4.63% 2,308,584 26,778 4.67% 2,247,720 26,158 4.62% 2,191,652 25,698 4.65% 2,118,106 25,623 4.85% 2,360,613 54,539 4.65% 2,100,592 50,850 4.88%
Total interest-earning assets 2,828,746 29,429 4.18% 2,708,591 28,414 4.22% 2,692,791 27,908 4.11% 2,713,403 27,168 3.97% 2,651,285 27,099 4.10% 2,768,668 57,843 4.20% 2,657,491 53,984 4.10%
Cash and due from banks 16,413 16,501 18,005 17,160 16,222 16,457 17,649
Less: allowance for loan and lease losses (17,271) (16,239) (16,106) (15,066) (14,346) (16,755) (14,605)
Other assets 262,065 264,295 264,321 265,811 257,540 263,180 253,873
Total assets $ 3,089,953 $ 2,973,148 $ 2,959,011 $ 2,981,308 $ 2,910,701 $ 3,031,550 $ 2,914,408
Liabilities:
Interest-bearing deposits:
Savings, NOW and market rate deposits $ 1,273,964 $ 589 0.19%$ 1,279,630 $ 569 0.18%$ 1,260,575 $ 565 0.18%$ 1,260,529 $ 584 0.18%$ 1,224,544 $ 575 0.19% $ 1,276,797 $ 1,158 0.18%$ 1,238,399 $ 1,169 0.19%
Wholesale deposits 196,517 361 0.74% 137,201 233 0.68% 119,394 186 0.62% 133,277 203 0.60% 130,497 195 0.60% 166,859 594 0.72% 135,282 383 0.57%
Retail time deposits 246,771 452 0.74% 216,820 274 0.51% 231,605 295 0.51% 251,170 289 0.46% 273,718 292 0.43% 231,795 726 0.63% 270,775 538 0.40%
Total interest-bearing deposits 1,717,252 1,402 0.33% 1,633,651 1,076 0.26% 1,611,574 1,046 0.26% 1,644,976 1,076 0.26% 1,628,759 1,062 0.26% 1,675,451 2,478 0.30% 1,644,456 2,090 0.26%
Borrowings:
Short-term borrowings 32,328 20 0.25% 34,158 17 0.20% 26,092 9 0.14% 28,166 8 0.11% 34,980 10 0.11% 33,243 37 0.22% 45,038 31 0.14%
Long-term FHLB advances and other borrowings 236,248 867 1.48% 250,015 908 1.46% 254,880 912 1.42% 248,606 881 1.41% 249,678 851 1.37% 243,131 1,775 1.47% 257,963 1,761 1.38%
Subordinated notes 29,496 370 5.05% 29,482 366 4.99% 29,471 370 4.98% 18,190 231 5.04% - - 0.00% 29,489 736 5.02% - - 0.00%
Total borrowings 298,072 1,257 1.70% 313,655 1,291 1.66% 310,443 1,291 1.65% 294,962 1,120 1.51% 284,658 861 1.21% 305,863 2,548 1.68% 303,001 1,792 1.19%
Total interest-bearing liabilities 2,015,324 2,659 0.53% 1,947,306 2,367 0.49% 1,922,017 2,337 0.48% 1,939,938 2,196 0.45% 1,913,417 1,923 0.40% 1,981,314 5,026 0.51% 1,947,457 3,882 0.40%
Noninterest-bearing deposits 675,710 631,047 634,969 625,547 580,240 653,379 557,386
Other liabilities 32,804 33,923 36,665 39,219 37,890 33,363 34,332
Total noninterest-bearing liabilities 708,514 664,970 671,634 664,766 618,130 686,742 591,718
Total liabilities 2,723,838 2,612,276 2,593,651 2,604,704 2,531,547 2,668,056 2,539,175
Shareholders' equity 366,115 360,872 365,360 376,604 379,154 363,494 375,233
Total liabilities and shareholders' equity $ 3,089,953 $ 2,973,148 $ 2,959,011 $ 2,981,308 $ 2,910,701 $ 3,031,550 $ 2,914,408
Interest income to earning assets 4.18% 4.22% 4.11% 3.97% 4.10% 4.20% 4.10%
Net interest spread 3.65% 3.73% 3.63% 3.52% 3.70% 3.69% 3.70%
Effect of noninterest-bearing sources 0.16% 0.14% 0.14% 0.13% 0.11% 0.15% 0.10%
Tax-equivalent net interest margin $26,770 3.81% $ 26,047 3.87% $ 25,571 3.77% $ 24,972 3.65% $ 25,176 3.81% $ 52,817 3.84% $ 50,102 3.80%
Tax-equivalent adjustment $ 143 0.02% $ 145 0.02% $ 142 0.02% $ 139 0.02% $ 106 0.02% $ 288 0.02% $ 237 0.02%
Supplemental Information Regarding Accretion of Fair Value Marks
Interest Income (Expense) Effect Effect on Yield or Rate Interest Income (Expense) Effect Effect on Yield or Rate Interest Income (Expense) Effect Effect on Yield or Rate Interest Income (Expense) Effect Effect on Yield or Rate Interest Income (Expense) Effect Effect on Yield or Rate Interest Income (Expense) Effect Effect on Yield or Rate Interest Income (Expense) Effect Effect on Yield or Rate
Loans and leases $ 1,076 0.18% $ 953 0.17% $ 707 0.12% $ 763 0.14% $ 1,246 0.24% $ 2,029 0.17% $ 2,373 0.23%
Retail time deposits (61) -0.10% (110) -0.20% (123) -0.21% (188) -0.30% (205) -0.30% (171) -0.15% (450) -0.34%
Short-term borrowings - 0.00% (12) -0.14% (35) -0.53% (35) -0.49% (35) -0.40% (12) -0.07% (69) -0.31%
Long-term FHLB advances and other borrowings (30) -0.05% (30) -0.05% (30) -0.05% (30) -0.05% (30) -0.05% (60) -0.05% (66) -0.05%
Net interest income from fair value marks $ 1,167 $ 1,105 $ 895 $ 1,016 $ 1,516 $2,272 $ 2,958
Purchase accounting effect on tax-equivalent margin 0.17% 0.16% 0.13% 0.15% 0.23% 0.17% 0.22%
* 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
Appendix - Non-GAAP to GAAP Reconciliations and Calculation of Non-GAAP Performance Measures (unaudited)
(dollars in thousands, except per share data)
Statement on Non-GAAP Measures: The Corporation believes the presentation of the following non-GAAP financial measures provides useful supplemental information that is essential to an investor’s proper understanding of the results of operations and financial condition of the Corporation. Management uses non-GAAP financial measures in its analysis of the Corporation’s performance. These non-GAAP measures should not be viewed as substitutes for the financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.
As of or For the Three Months Ended As of or For the Six Months Ended
June 30, 2016 March 31, 2016 December 31, 2015 September 30, 2015 June 30, 2015 June 30, 2016 June 30, 2015
Reconciliation of Net Income to Net Income (core):
Net income (loss) (a GAAP measure)$ 8,920 $ 8,274 $ (6,355) $ 7,496 $ 8,119 $ 17,194 $ 15,613
Less: Tax-effected non-core noninterest income:
Loss (gain) on sale of investment securities available for sale 28 10 (38) (39) (2) 38 (528)
Add: Tax-effected non-core noninterest expense items:
Loss on pension termination - - 11,295 - - - -
Severance expense (Salaries and wages) - - 142 124 - - -
Branch lease termination expense - - 604 - - - -
Debt and swap prepayment penalty (Other operating expenses) - - 397 - - - 339
Impairment of intangible assets - - 252 - - - -
Due diligence, merger-related and merger integration expenses - - 1,209 660 841 - 2,467
Net income (core) (a non-GAAP measure)$ 8,948 $ 8,284 $ 7,506 $ 8,241 $ 8,958 $ 17,232 $ 17,891
Calculation of Basic and Diluted Earnings per Common Share (core):
Weighted average common shares outstanding 16,812,219 16,848,202 17,129,234 17,572,421 17,713,794 16,830,211 17,630,263
Dilutive common shares 214,656 63,617 112,783 261,877 340,869 124,824 349,163
Adjusted weighted average diluted shares 17,026,875 16,911,819 17,242,017 17,834,298 18,054,663 16,955,035 17,979,426
Basic earnings per common share (core) (a non-GAAP measure)$ 0.53 $ 0.49 $ 0.44 $ 0.47 $ 0.51 $ 1.02 $ 1.01
Diluted earnings per common share (core) (a non-GAAP measure)$ 0.53 $ 0.49 $ 0.44 $ 0.46 $ 0.50 $ 1.02 $ 1.00
Calculation of Return on Average Tangible Equity:
Net income (loss)$ 8,920 $ 8,274 $ (6,355) $ 7,496 $ 8,119 $ 17,194 $ 15,613
Add: Tax-effected amortization and impairment of intangible assets 578 579 861 619 621 1,157 1,259
Net tangible income (numerator)$ 9,498 $ 8,853 $ (5,494) $ 8,115 $ 8,740 $ 18,351 $ 16,872
Average shareholders' equity$ 366,115 $ 360,872 $ 365,360 $ 376,604 $ 379,154 $ 363,494 $ 375,233
Less: Average goodwill and intangible assets (127,402) (128,296) (129,292) (130,241) (129,116) (127,849) (126,568)
Net average tangible equity (denominator)$ 238,713 $ 232,576 $ 236,068 $ 246,363 $ 250,038 $ 235,645 $ 248,665
Return on tangible equity (a non-GAAP measure) 16.00% 15.31% -9.23% 13.07% 14.02% 15.66% 13.68%
Calculation of Tangible Equity Ratio:
Total shareholders' equity$ 372,467 $ 365,177 $ 365,711 $ 368,155 $ 381,098
Less: Goodwill and intangible assets (126,888) (127,777) (128,668) (129,694) (130,631)
Net tangible equity (numerator)$ 245,579 $ 237,400 $ 237,043 $ 238,461 $ 250,467
Total assets$ 3,090,090 $ 3,058,247 $ 3,030,997 $ 2,952,742 $ 2,950,014
Less: Goodwill and intangible assets (126,888) (127,777) (128,668) (129,694) (130,631)
Tangible assets (denominator)$ 2,963,202 $ 2,930,470 $ 2,902,329 $ 2,823,048 $ 2,819,383
Tangible equity ratio 8.29% 8.10% 8.17% 8.45% 8.88%
Calculation of Efficiency Ratio:
Noninterest expense$ 26,259 $ 25,051 $ 46,951 $ 25,403 $ 25,982 $ 51,310 $ 53,411
Less: certain noninterest expense items*:
Loss on pension termination - - (17,377) - - - -
Severance expense (Salaries and wages) - - (218) (191) - - -
Branch lease termination expense - - (929) - - - -
Debt and swap prepayment penalty (Other operating expenses) - - (611) - - - (522)
Amortization of intangibles (889) (891) (937) (953) (955) (1,780) (1,937)
Impairment of intangible assets - - (388) - - - -
Due diligence, merger-related and merger integration expenses - - (1,860) (1,015) (1,294) - (3,795)
Noninterest expense (adjusted) (numerator)$ 25,370 $ 24,160 $ 24,631 $ 23,244 $ 23,733 $ 49,530 $ 47,157
Noninterest income$ 13,820 $ 13,208 $ 13,668 $ 13,350 $ 14,177 $ 27,028 $ 28,942
Less: non-core noninterest income items:
Loss (gain) on sale of investment securities available for sale 43 15 (58) (60) (3) 58 (812)
Noninterest income (core)$ 13,863 $ 13,223 $ 13,610 $ 13,290 $ 14,174 $ 27,086 $ 28,130
Net interest income 26,627 25,902 25,429 24,833 25,070 52,529 49,865
Noninterest income (core) and net interest income (denominator)$ 40,490 $ 39,125 $ 39,039 $ 38,123 $ 39,244 $ 79,615 $ 77,995
Efficiency ratio 62.66% 61.75% 63.09% 60.97% 60.48% 62.21% 60.46%
* In calculating the Corporation's efficiency ratio, which is used by Management to identify the cost of generating each dollar of core revenue, certain non-core income and expense items as well as the amortization of intangible assets, are excluded.
Supplemental Loan and Allowance Information Used to Calculate Non-GAAP Measures
Total Allowance$ 17,036 $ 16,845 $ 15,857 $ 15,935 $ 14,959
less: Allowance on acquired loans 28 28 - 35 22
Allowance on originated loans and leases$ 17,008 $ 16,817 $ 15,857 $ 15,900 $ 14,937
Total Allowance$ 17,036 $ 16,845 $ 15,857 $ 15,935 $ 14,959
Loan mark on acquired loans 14,566 15,930 17,108 18,179 19,816
Total Allowance + Loan mark$ 31,602 $ 32,775 $ 32,965 $ 34,114 $ 34,775
Total Portfolio loans and leases$ 2,423,821 $ 2,378,841 $ 2,268,988 $ 2,228,764 $ 2,153,263
less: Originated loans and leases 2,090,070 2,015,683 1,883,869 1,804,835 1,692,041
Net acquired loans$ 333,751 $ 363,158 $ 385,119 $ 423,929 $ 461,222
add: Loan mark on acquired loans 14,566 15,930 17,108 18,179 19,816
Gross acquired loans (excludes loan mark)$ 348,317 $ 379,088 $ 402,227 $ 442,108 $ 481,038
Originated loans and leases 2,090,070 2,015,683 1,883,869 1,804,835 1,692,041
Total Gross portfolio loans and leases$ 2,438,387 $ 2,394,771 $ 2,286,096 $ 2,246,943 $ 2,173,079

FOR MORE INFORMATION CONTACT: Frank Leto, President, CEO 610-581-4730 Mike Harrington, CFO 610-526-2466

Source:Bryn Mawr Bank Corporation