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Bryn Mawr Bank Corporation Reports Record Earnings for 2012, Boosts Wealth Assets by 38.4% to $6.4 Billion

BRYN MAWR, Pa., Jan. 24, 2013 (GLOBE NEWSWIRE) -- Bryn Mawr Bank Corporation (Nasdaq:BMTC), (the "Corporation"), parent of The Bryn Mawr Trust Company (the "Bank"), today reported net income of $5.3 million and diluted earnings per share of $0.40 for the three months ended December 31, 2012, as compared to net income of $5.0 million and diluted earnings per share of $0.38 for the same period in 2011. Net income for the twelve months ended December 31, 2012 was $21.1 million, or $1.60 per diluted share, as compared to net income of $19.6 million, or $1.54 per diluted share for the same period in 2011.

Net income for the twelve months ended December 31, 2012 included pre-tax due diligence and merger-related expenses of $2.6 million as compared to pre-tax due diligence and merger-related expenses of $537 thousand for the same period in 2011. Significant factors contributing to the outstanding results for the twelve months ended December 31, 2012, as compared to 2011, included a 37.5% increase in wealth management revenues and a 167.6% increase in the net gain on sale of residential mortgage loans.

Ted Peters, Chairman and Chief Executive Officer, commented, "Our strategic transactions this year, which included the acquisition of the Davidson Trust Company and the acquisition of certain loans and deposits and a branch location from the First Bank of Delaware, have begun to produce the positive results we had anticipated. In addition, our mortgage banking division has continued to produce outstanding results driven by the ongoing low-interest-rate environment."

On January 24, 2013, the Board of Directors of the Corporation declared a quarterly dividend of $0.17 per share, an increase of $0.01, or 6.3%, from the previous quarter's dividend. The dividend is payable March 1, 2013 to shareholders of record as of February 5, 2013.

Mr. Peters continued, "I am confident in our business model and expect continued solid results in 2013, as we experience the full-year impact of our 2012 acquisitions."

SIGNIFICANT ITEMS OF NOTE

  • Net income of $5.3 million for the three months ended December 31, 2012 increased $295 thousand, or 5.9%, from $5.0 million for the same period in 2011. The Corporation experienced significant increases in revenue for wealth management services and gain on sale of residential mortgage loans, as well as a substantial decrease in interest expense between the periods.
  • Total assets as of December 31, 2012 were $2.04 billion, as compared to $1.77 billion as of December 31, 2011. Total portfolio loans and leases of $1.40 billion, as of December 31, 2012, increased $103 million, or 8.0%, as compared to $1.30 billion as of December 31, 2011. A significant portion of the loan growth was related to the November 17, 2012 acquisition of loans from the First Bank of Delaware, which totaled $80.2 million as of December 31, 2012.
  • Revenue from the Wealth Management Division for the three months ended December 31, 2012 was $8.4 million, an increase of 32.7% from the $6.3 million generated in the same period in 2011. Wealth Management Division assets under management, administration, supervision and brokerage as of December 31, 2012 were $6.66 billion, an increase of $1.86 billion, or 38.4%, from December 31, 2011. The increase was partially due to the May 15, 2012 acquisition of the Davidson Trust Company, which initially added approximately $1.0 billion in assets under management, administration, supervision and brokerage. In addition, organic growth related to strategic initiatives within the division, along with market appreciation, contributed to the growth.
  • Net interest income for the three months ended December 31, 2012 was $16.9 million, an increase of $941 thousand, or 5.9%, from $16.0 million for the same period in 2011. The increase in net interest income between the periods was related to a 4.6% increase in average portfolio loans, largely related to the acquisition of the First Bank of Delaware loans. In addition, the Corporation's strategic decision to prepay $22.5 million of subordinated debt during the third and fourth quarters of 2012 contributed significantly to the $986 thousand decrease in interest expense for the three months ended December 31, 2012, as compared to the same period in 2011.
  • Non-interest income for the three months ended December 31, 2012 was $13.2 million as compared to $9.5 million for the same period in 2011, an increase of $3.7 million or 39.1%. The increase in non-interest income was attributable to the $2.1 million increase in fees for wealth management services mentioned above and a $1.7 million increase on the net gain on sale of residential mortgage loans. The volume of residential mortgage loans sold, for the three months ended December 31, 2012, increased $49.6 million, or 224.7%, from the same period in 2011.
  • Non-interest expense for the three months ended December 31, 2012 increased $4.4 million, to $21.1 million, as compared to $16.7 million for the same period in 2011. Contributing to this increase were a $1.3 million increase in due diligence and merger-related expenses, a $602 thousand increase in other operating expenses and a $1.4 million increase in salaries and wages between the periods. Salaries and wages increased primarily due to the acquisition of the Davidson Trust Company in May 2012 and the addition of the branch and lending staff from the First Bank of Delaware in November 2012, coupled with the increase in incentive-based compensation related to residential mortgage loan sales. The increase in other operating expenses included $338 thousand in unamortized costs and prepayment penalties related to the early extinguishment of subordinated debt during the fourth quarter of 2012.
  • The tax-equivalent net interest margin of 3.86% for the three months ended December 31, 2012 was a 5 basis point decrease from the 3.91% tax-equivalent net interest margin for the same period in 2011. The 5 basis point decrease was the result of increases in the average balances of both interest-earning assets and interest-bearing liabilities which were offset by declines in tax-equivalent yield earned, and rate paid, respectively, between periods.
  • Deposits of $1.63 billion, as of December 31, 2012, increased $252.3 million from December 31, 2011. The 18.3% increase was the result of a $165.7 million increase in money market accounts and a $73.3 million increase in non-interest-bearing accounts, partially offset by decreases of $20.0 million in wholesale non-maturity deposits and $11.1 million in wholesale time deposits between the respective dates. The First Bank of Delaware transaction initially added $70.3 million of deposits, of which $43.3 million were time deposits.
  • Nonperforming loans and leases as of December 31, 2012 were 1.06% of total portfolio loans and leases, as compared to 1.11% as of December 31, 2011. For the three months ended December 31, 2012, the Corporation recorded net loan and lease charge-offs of $214 thousand, as compared to net loan and lease recoveries of $43 thousand for the same period in 2011. The provision for loan and lease losses for the three months ended December 31, 2012 was $1.0 million, as compared with $1.1 million for the same period in 2011.
  • The allowance for loan and lease losses (the "Allowance"), as of December 31, 2012, of $14.4 million, was 1.03% of portfolio loans and leases, as compared to $12.8 million or 0.98% of portfolio loans and leases as of December 31, 2011. The $1.7 million increase in the Allowance is primarily reflective of the growth of the Corporation's loan portfolio and management's analysis of qualitative factors affecting the loan portfolio.
  • The capital ratios for the Bank and the Corporation, as shown in the table below, indicate levels well above the regulatory minimum to be considered "well capitalized."
  • On December 21, 2012, the Corporation opened its newest branch in Bala Cynwyd, Pennsylvania, just outside Philadelphia. In addition, the Corporation continues to seek opportunities to expand in the state of Delaware in order to complement the recently opened branch location on Route 202 in Wilmington, which was acquired from the First Bank of Delaware, as well as our Lau Associates and Bryn Mawr Trust of Delaware offices located in Greenville, Delaware.

EARNINGS CONFERENCE CALL

The Corporation will hold an earnings conference call at 8:30 a.m. ET on Friday, January 25, 2013. Interested parties may participate by calling 1-888-317-6016, conference number 10022593. A taped replay of the conference call will be available one hour after the conclusion of the call and will remain available through February 11, 2013. The number to call for the taped replay is 1-877-344-7529 and the Replay Passcode is 10022593.

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://www.bmtc.com/investor_01.cfm. An online archive of the webcast will be available within one hour of the conclusion of the call. The Corporation has also recently expanded its Investor Relations website to include added resources and information for shareholders and interested investors. Interested parties are encouraged to utilize the expanded resources of the site for more information on Bryn Mawr Bank Corporation.

FORWARD LOOKING STATEMENTS AND SAFE HARBOR

This press release contains statements which, to the extent that they are not recitations of historical fact may constitute forward-looking statements for purposes of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. Such forward-looking statements may include financial and other projections as well as statements regarding the Corporation's future plans, objectives, performance, revenues, growth, profits, operating expenses or the Corporation's underlying assumptions. The words "may," "would," "should," "could," "will," "likely," "possibly," "expect," "anticipate," "intend," "estimate," "target," "potentially," "probably," "outlook," "predict," "contemplate," "continue," "plan," "forecast," "project," "are optimistic," "are looking," "are looking forward" and "believe" or other similar words and phrases may identify forward-looking statements. Persons reading this press release are cautioned that such statements are only predictions, and that the Corporation's actual future results or performance may be materially different.

Such forward-looking statements involve known and unknown risks and uncertainties. A number of factors, many of which are beyond the Corporation's control, could cause our actual results, events or developments, or industry results, to be materially different from any future results, events or developments expressed, implied or anticipated by such forward-looking statements, and so our business and financial condition and results of operations could be materially and adversely affected. Such factors include, among others, our need for capital, our ability to control operating costs and expenses, and to manage loan and lease delinquency rates; the credit risks of lending activities and overall quality of the composition of our loan, lease and securities portfolio; the impact of economic conditions, consumer and business spending habits, and real estate market conditions on our business and in our market area; changes in the levels of general interest rates, deposit interest rates, or net interest margin and funding sources; changes in banking regulations and policies and the possibility that any banking agency approvals we might require for certain activities will not be obtained in a timely manner or at all or will be conditioned in a manner that would impair our ability to implement our business plans; changes in accounting policies and practices; the inability of key third-party providers to perform their obligations to us; our ability to attract and retain key personnel; competition in our marketplace; war or terrorist activities; material differences in the actual financial results, cost savings and revenue enhancements associated with our acquisitions; and other factors as described in our securities filings. All forward-looking statements and information set forth herein are based on Management's current beliefs and assumptions as of the date hereof and speak only as of the date they are made. The Corporation does not undertake to update forward-looking statements.

For a complete discussion of the assumptions, risks and uncertainties related to our business, you are encouraged to review our filings with the Securities and Exchange Commission, including our most recent annual report on Form 10-K, as well as any changes in risk factors that we may identify in our quarterly or other reports 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
Dec 31, Sep 30, Jun 30, Mar 31, Dec 31,
2012 2012 2012 2012 2011
Interest income $ 18,682 $ 18,081 $ 18,188 $ 18,372 $ 18,727
Interest expense 1,786 2,130 2,285 2,387 2,772
Net interest income 16,896 15,951 15,903 15,985 15,955
Provision for loan and lease losses 1,000 1,000 1,003 1,000 1,056
Net interest income after provision for loan and lease losses 15,896 14,951 14,900 14,985 14,899
Fees for wealth management services 8,365 7,993 7,211 6,229 6,306
Loan servicing and other fees 473 432 436 435 454
Service charges on deposits 654 634 609 580 654
Net gain on sale of residential mortgage loans 2,424 1,837 1,304 1,170 699
Net gain on sale of available for sale investments 283 416 716 -- 373
Net loss on sale of other real estate owned ("OREO") -- (45) -- (41) (38)
BOLI income 98 108 105 118 114
Other operating income 873 873 1,000 1,096 909
Non-interest income 13,170 12,248 11,381 9,587 9,471
Salaries and wages 8,848 8,703 8,075 7,505 7,404
Employee benefits 2,041 1,903 2,023 2,160 1,889
Occupancy and bank premises 1,616 1,488 1,395 1,375 1,424
Furniture fixtures and equipment 961 935 940 891 938
Advertising 363 267 359 320 257
Net impairment (recovery) of mortgage servicing rights 81 105 87 (110) 114
Amortization of mortgage servicing rights 248 243 256 219 225
Intangible asset amortization 673 669 560 509 522
FDIC insurance 255 262 234 219 218
Due diligence and merger-related expenses 1,190 316 914 209 (79)
Professional fees 1,031 609 571 657 647
Other operating expenses 3,782 3,389 2,714 2,841 3,180
Non-interest expense 21,089 18,889 18,128 16,795 16,739
Income before income taxes 7,977 8,310 8,153 7,777 7,631
Income tax expense 2,673 2,885 2,808 2,704 2,627
Net income $ 5,304 $ 5,425 $ 5,345 $ 5,073 $ 5,004
Per share data:
Weighted average shares outstanding 13,157,295 13,149,050 13,072,963 12,979,746 12,901,266
Dilutive common shares 205,545 146,377 158,570 147,502 99,964
Adjusted weighted average dilutive shares 13,362,840 13,295,427 13,231,533 13,127,248 13,001,230
Basic earnings per common share $0.40 $0.41 $0.41 $0.39 $0.39
Diluted earnings per common share $0.40 $0.41 $0.40 $0.39 $0.38
Dividend declared per share $0.16 $0.16 $0.16 $0.16 $0.15
Effective tax rate 33.5% 34.7% 34.4% 34.8% 34.4%
Bryn Mawr Bank Corporation
Consolidated Statements of Income - (unaudited) **
(Dollars in thousands, except per share data)
For The Twelve Months Ended
Dec 31, Dec 31,
2012 2011
Interest income $ 73,323 $ 74,562
Interest expense 8,588 11,661
Net interest income 64,735 62,901
Provision for loan and lease losses 4,003 6,088
Net interest income after provision for loan and lease losses 60,732 56,813
Fees for wealth management services 29,798 21,669
Loan servicing and other fees 1,776 1,824
Service charges on deposits 2,477 2,495
Net gain on sale of residential mortgage loans 6,735 2,517
Net gain on sale of available for sale investments 1,415 1,783
BOLI income 428 462
Net loss on sale of other real estate owned ("OREO") (86) (97)
Other operating income 3,843 3,406
Non-interest income 46,386 34,059
Salaries and wages 33,131 28,084
Employee benefits 8,127 6,889
Occupancy and bank premises 5,874 5,176
Furniture fixtures and equipment 3,727 3,509
Advertising 1,309 1,166
Net impairment of mortgage servicing rights 163 786
Amortization of mortgage servicing rights 966 749
Intangible asset amortization 2,411 1,490
FDIC insurance 970 1,186
Due diligence and merger-related expenses 2,629 537
Professional fees 2,868 2,311
Other operating expenses 12,726 9,846
Non-interest expense 74,901 61,729
Income before income taxes 32,217 29,143
Income tax expense 11,070 9,541
Net income $ 21,147 $ 19,602
Per share data:
Weighted average shares outstanding 13,090,110 12,659,824
Dilutive common shares 151,736 82,313
Adjusted weighted average shares 13,241,846 12,742,137
Basic earnings per common share $1.62 $1.55
Diluted earnings per common share $1.60 $1.54
Dividend declared per share $0.64 $0.60
Effective tax rate 34.4% 32.7%
Bryn Mawr Bank Corporation
Consolidated Balance Sheets - (unaudited) **
(Dollars in thousands)
Dec 31, Sep 30, June 30, Mar 31, Dec 31,
2012 2012 2012 2012 2011
Assets
Interest bearing deposits with banks $ 159,483 $ 23,559 $ 68,324 $ 55,759 $ 57,369
Investment securities - available for sale 316,614 316,644 331,407 328,215 273,822
Investment securities - trading 1,447 1,399 1,342 1,556 1,436
Loans held for sale 3,412 3,420 1,668 5,784 1,588
Portfolio loans:
Consumer 17,666 17,342 15,920 13,644 11,429
Commercial & industrial 291,620 274,351 264,116 270,766 267,204
Commercial mortgages 546,358 472,354 445,254 430,896 419,130
Construction 26,908 22,161 33,815 51,274 52,844
Residential mortgages 288,212 301,054 304,249 306,911 306,478
Home equity lines & loans 194,861 195,315 202,676 202,015 207,917
Leases 32,831 31,136 30,549 28,974 30,390
Total portfolio loans and leases 1,398,456 1,313,713 1,296,579 1,304,480 1,295,392
Earning assets 1,879,412 1,658,735 1,699,320 1,695,794 1,629,607
Cash and due from banks 16,203 13,526 13,147 11,939 11,771
Allowance for loan and lease losses (14,424) (13,638) (13,140) (13,040) (12,753)
Premises and equipment 31,170 29,238 28,911 28,680 29,328
Accrued interest receivable 5,955 5,963 6,009 6,037 6,061
Mortgage servicing rights 4,491 4,257 4,220 4,217 4,041
Goodwill 32,897 29,588 29,752 24,689 24,689
Other intangible assets 21,998 22,351 22,855 17,504 18,014
Bank owned life insurance ("BOLI") 19,862 19,765 19,658 19,552 19,434
FHLB stock 10,761 10,717 10,746 11,009 11,588
Deferred income taxes 12,303 11,478 11,432 12,991 13,845
Other investments 4,346 4,438 4,424 4,095 4,107
Other assets 10,911 18,111 16,021 12,944 13,641
Total assets $ 2,035,885 $ 1,814,529 $ 1,853,355 $ 1,836,411 $ 1,773,373
Liabilities and shareholders' equity
Interest-bearing checking $ 270,279 $ 226,206 $ 237,126 $ 235,841 $ 233,562
Money market 559,470 493,829 468,314 418,503 393,729
Savings 129,091 132,402 133,204 135,912 130,613
Wholesale non-maturity deposits 45,162 37,458 35,365 66,518 65,173
Wholesale time deposits 12,421 9,942 22,505 22,062 23,550
Time deposits 218,586 171,498 193,081 212,003 209,333
Interest-bearing deposits 1,235,009 1,071,335 1,089,595 1,090,839 1,055,960
Non-interest bearing deposits 399,673 327,214 336,972 334,918 326,409
Total deposits 1,634,682 1,398,549 1,426,567 1,425,757 1,382,369
FHLB advances and other borrowings 161,315 155,416 169,589 164,697 147,795
Short-term borrowings 9,402 19,029 14,675 13,254 12,863
Subordinated debentures -- 15,000 22,500 22,500 22,500
Other liabilities 26,921 25,280 23,956 20,538 23,466
Shareholders' equity 203,565 201,255 196,068 189,665 184,380
Total liabilities and shareholders' equity $ 2,035,885 $ 1,814,529 $ 1,853,355 $ 1,836,411 $ 1,773,373
Bryn Mawr Bank Corporation
Consolidated Quarterly Average Balance Sheets - (unaudited)
(Dollars in thousands)
2012 2012 2012 2012 2011
4Q 3Q 2Q 1Q 4Q
Assets
Interest bearing deposits with banks $ 91,234 $ 53,767 $ 57,734 $ 38,556 $ 56,679
Investment securities - available for sale 311,372 328,051 321,420 304,215 279,405
Investment securities - trading 1,400 1,343 1,546 1,437 1,319
Loans held for sale 4,047 2,972 3,810 3,935 3,888
Portfolio loans and leases 1,341,826 1,300,811 1,290,209 1,295,617 1,282,916
Earning assets 1,749,879 1,686,944 1,674,719 1,643,760 1,624,207
Cash and due from banks 14,817 12,922 12,259 11,539 11,516
Allowance for loan and lease losses (14,063) (13,337) (13,383) (13,089) (12,110)
Premises and equipment 30,189 29,077 28,866 29,095 29,586
Goodwill 29,642 29,751 26,201 24,688 23,186
Other intangible assets 22,084 22,580 21,427 17,804 18,319
Bank owned life insurance 19,800 19,695 19,589 19,480 19,359
FHLB stock 10,572 10,717 10,553 11,223 11,588
Deferred income taxes 11,577 13,225 13,659 13,637 13,972
Other assets 23,800 21,229 22,651 25,512 24,077
Total assets $ 1,898,297 $ 1,832,803 $ 1,816,541 $ 1,783,649 $ 1,763,700
Liabilities and shareholders' equity
Interest-bearing checking $ 241,730 $ 229,853 $ 236,131 $ 227,817 $ 224,648
Money market 516,174 486,798 436,717 406,972 394,150
Savings 132,725 133,315 133,105 132,451 132,617
Wholesale non-maturity deposits 38,932 35,956 47,463 65,117 65,127
Wholesale time deposits 10,689 13,809 22,280 22,354 27,749
Time deposits 190,332 178,711 203,344 210,973 214,684
Interest-bearing deposits 1,130,582 1,078,442 1,079,040 1,065,684 1,058,975
Non-interest bearing deposits 359,008 330,179 323,539 305,468 304,883
Total deposits 1,489,590 1,408,621 1,402,579 1,371,152 1,363,858
FHLB advances and other borrowings 159,559 167,251 163,908 165,402 140,177
Short-term borrowings 13,243 13,273 13,149 13,885 15,147
Subordinated debentures 7,283 21,114 22,500 22,500 22,500
Junior subordinated debentures -- -- -- -- 10,294
Other liabilities 27,175 25,354 23,158 25,259 24,991
Shareholders' equity 201,447 197,190 191,247 185,451 186,733
Total liabilities and shareholders' equity $ 1,898,297 $ 1,832,803 $ 1,816,541 $ 1,783,649 $ 1,763,700
Bryn Mawr Bank Corporation
Consolidated Average Balance Sheets - (unaudited)
(Dollars in thousands)
For the Twelve Months Ended December 31,
2012 2011
Assets
Interest bearing deposits with banks $ 60,389 $ 52,390
Investment securities - available for sale 316,283 292,209
Investment securities - trading 1,431 1,339
Loans held for sale 3,743 4,196
Portfolio loans and leases 1,307,140 1,245,875
Earning assets 1,688,986 1,596,009
Cash and due from banks 12,890 12,078
Allowance for loan and lease losses (13,469) (11,397)
Premises and equipment 29,309 29,439
Goodwill 27,582 20,961
Intangible assets 20,981 14,007
Bank owned life insurance 19,642 19,187
FHLB stock 10,766 12,595
Deferred income taxes 12,147 14,093
Other assets 24,167 24,714
Total assets $ 1,833,001 $ 1,731,686
Liabilities and shareholders' equity
Interest-bearing checking $ 233,893 $ 226,831
Money market 461,883 364,094
Savings 132,899 131,925
Wholesale non-maturity deposits 46,815 67,793
Wholesale time deposits 17,256 30,429
Time deposits 195,778 232,084
Interest-bearing deposits 1,088,524 1,053,156
Non-interest bearing deposits 329,631 287,553
Total deposits 1,418,155 1,340,709
FHLB advances and other borrowings 163,888 145,421
Short-term borrowings 13,525 11,380
Subordinated debentures 18,327 22,500
Junior subordinated debentures -- 11,580
Other liabilities 25,242 23,573
Shareholders' equity 193,864 176,523
Total liabilities and shareholders' equity $ 1,833,001 $ 1,731,686
Bryn Mawr Bank Corporation
Consolidated Selected Financial Data - (unaudited)
(Dollars in thousands, except per share data )
December 31, 2012
For the period end: 2012 2012 2012 2012 2011
4Q 3Q 2Q 1Q 4Q
Asset Quality Data
Nonaccrual loans and leases $ 14,040 $ 13,816 $ 14,929 $ 22,570 $ 14,315
90 days or more, past due loans, still accruing 728 -- 3,376 -- --
Nonperforming loans and leases 14,768 13,816 18,305 22,570 14,315
Other real estate owned 906 412 865 404 549
Total nonperforming assets $ 15,674 $ 14,228 $ 19,170 $ 22,974 $ 14,864
Troubled debt restructurings included in nonperforming $ 3,106 $ 3,740 $ 4,005 $ 4,223 $ 4,300
Troubled debt restructurings in compliance with modified terms 8,008 8,379 8,302 7,970 7,166
Total troubled debt restructurings $ 11,114 $ 12,119 $ 12,307 $ 12,193 $ 11,466
Nonperforming loans and leases / portfolio loans 1.06% 1.05% 1.41% 1.73% 1.11%
Nonperforming assets / assets 0.77% 0.78% 1.03% 1.25% 0.84%
Net loan charge-offs (recoveries) / average loans (annualized) 0.08% 0.16% 0.26% 0.21% -0.02%
Net lease (recoveries) charge-offs / average leases (annualized) -0.38% -0.23% 0.94% 0.67% 0.22%
Net loan and lease charge-offs (recoveries) / average loans and leases (annualized) 0.07% 0.16% 0.28% 0.23% -0.01%
Delinquency rate - loans and leases 30 days or more past due 1.02% 1.01% 1.36% 1.52% 1.37%
Delinquent loans and leases - 30-89 days past due $ 2,053 $ 1,954 $ 2,722 $ 5,468 $ 5,311
Delinquency rate - loans and leases 30-89 days past due 0.15% 0.15% 0.21% 0.28% 0.29%
Changes in the allowance for loan and lease losses:
Balance, beginning of period $ 13,638 $ 13,140 $ 13,040 $ 12,753 $ 11,654
Charge-offs (451) (618) (960) (839) (466)
Recoveries 237 116 57 126 509
Net (charge-offs) / recoveries (214) (502) (903) (713) 43
Provision for loan and lease losses 1,000 1,000 1,003 1,000 1,056
Balance, end of period $ 14,424 $ 13,638 $ 13,140 $ 13,040 $ 12,753
Allowance for loan and lease losses / loans and leases 1.03% 1.04% 1.01% 1.00% 0.98%
Allowance for loan and lease losses / nonperforming loans and leases 97.7% 98.7% 71.8% 57.8% 89.1%
Bryn Mawr Bank Corporation
Consolidated Selected Financial Data - (unaudited)
(Dollars in thousands, except per share data )
December 31, 2012
For the period and period end: 2012 2012 2012 2012 2011
4Q 3Q 2Q 1Q 4Q
Selected ratios (annualized):
Return on average assets 1.11% 1.18% 1.18% 1.14% 1.13%
Return on average shareholders' equity 10.47% 10.93% 11.24% 11.00% 10.63%
Return on average tangible equity (2) 14.09% 14.89% 14.97% 14.27% 13.67%
Yield on loans and leases* 5.24% 5.21% 5.31% 5.33% 5.45%
Yield on interest earning assets* 4.27% 4.28% 4.39% 4.51% 4.59%
Cost of interest bearing funds 0.54% 0.66% 0.72% 0.76% 0.88%
Net interest margin* 3.86% 3.78% 3.84% 3.93% 3.91%
Book value per share $ 15.17 $ 15.02 $ 14.73 $ 14.40 $ 14.07
Tangible book value per share $ 11.08 $ 11.14 $ 10.77 $ 11.20 $ 10.78
Period end shares outstanding 13,414,552 13,399,635 13,316,469 13,168,555 13,106,353
Selected data:
Mortgage loans originated $ 82,458 $ 64,455 $ 51,427 $ 55,385 $ 60,467
Mortgage loans sold - servicing retained $ 71,596 $ 54,992 $ 41,986 $ 32,778 $ 20,883
Mortgage loans sold - servicing released -- -- 2,238 1,223 1,164
Total mortgage loans sold $ 71,596 $ 54,992 $ 44,224 $ 34,001 $ 22,047
Yield on loans sold 3.39% 3.34% 2.95% 3.44% 3.17%
Mortgage loans serviced for others $ 595,317 $ 583,859 $ 575,533 $ 571,440 $ 574,422
Total wealth assets under management / administration / supervision / brokerage (1) $ 6,663,212 $ 6,482,835 $ 6,275,940 $ 5,152,965 $ 4,831,631
* Yield on loans and leases, interest earning assets and net interest margin are calculated on a tax-equivalent basis.
(1) Brokerage Assets represent assets held at a registered broker dealer under a networking agreement.
(2) Average tangible equity equals average shareholders' equity minus average goodwill and average other intangible assets.
Bryn Mawr Bank Corporation
Consolidated Selected Financial Data - (unaudited)
(Dollars in thousands, except per share data )
December 31, 2012
2012 2011
Year-to-date Year-to-date
Selected ratios (annualized):
Return on average assets 1.15% 1.14%
Return on average shareholders' equity 10.91% 11.08%
Return on average tangible equity (2) 14.55% 13.85%
Yield on loans and leases* 5.27% 5.56%
Yield on interest-earning assets* 4.36% 4.69%
Cost of interest-bearing funds 0.67% 0.94%
Net interest margin* 3.85% 3.97%
Selected data:
Mortgage loans originated $ 253,725 $ 168,681
Mortgage loans sold - servicing retained $ 201,352 $ 75,232
Mortgage loans sold - servicing released 3,461 6,230
Total mortgage loans sold $ 204,813 $ 81,462
* Yield on loans and leases, interest earning assets and net interest margin are calculated on a tax-equivalent basis.
(2) Average tangible equity equals average shareholders' equity minus average goodwill and average other intangible assets.
Investment Portfolio - AFS As of December 31, 2012 As of December 31, 2011
($'s in thousands)
Net Net
Amortized Fair Unrealized Amortized Fair Unrealized
SECURITY DESCRIPTION Cost Value Gain / (Loss) Cost Value Gain / (Loss)
Obligations of U. S. government and agencies $ 73,183 $ 73,872 $ 689 $ 104,252 $ 104,570 $ 318
State & political subdivisions 30,243 30,384 141 8,210 8,366 156
Mortgage backed securities 128,537 131,826 3,289 95,713 97,834 2,121
Collateralized mortgage obligations 62,116 62,703 587 32,418 32,623 205
Other debt securities 1,900 1,900 -- 1,900 1,882 (18)
Bond - mutual funds 11,456 11,527 71 12,091 11,904 (187)
Investment CDs 2,350 2,364 14 2,411 2,420 9
Other investments 1,962 2,038 76 1,454 1,505 51
Corporate bonds -- -- -- 12,616 12,718 102
Total Investment Portfolio $ 311,747 $ 316,614 $ 4,867 $ 271,065 $ 273,822 $ 2,757
Capital Ratios
Regulatory Minimum
Bryn Mawr Trust Company Consolidated To Be
Well Capitalized 12/31/2012 9/30/2012 6/30/2012 3/31/2012 12/31/2011
Tier I Capital to Risk Weighted Assets (RWA) 6.00% 11.20% 11.99% 11.75% 12.17% 11.76%
Total (Tier II) Capital to RWA 10.00% 12.20% 14.09% 14.36% 14.78% 14.35%
Tier I Leverage Ratio 5.00% 8.84% 9.23% 9.14% 9.56% 9.35%
Tangible Equity Ratio 7.72% 8.85% 8.41% 8.70% 8.66%
Bryn Mawr Bank Corporation
Tier I Capital to Risk Weighted Assets (RWA) 6.00% 11.03% 11.64% 11.30% 11.52% 11.16%
Total (Tier II) Capital to RWA 10.00% 12.02% 13.74% 13.90% 14.23% 13.74%
Tier I Leverage Ratio 5.00% 8.72% 8.98% 8.80% 9.07% 8.89%
Tangible Equity Ratio 7.60% 8.58% 8.07% 8.22% 8.19%
Bryn Mawr Bank Corporation
Quarterly Average Balances and Tax-Equivalent Income and Expense and Tax-Equivalent Yields - (unaudited)
4th Quarter 2012 3rd Quarter 2012 2nd Quarter 2012 1st Quarter 2012 4th Quarter 2011
(dollars in thousands) Average Balance Interest Income/ Expense Average Rates Earned/ Paid Average Balance Interest Income/ Expense Average Rates Earned/ Paid Average Balance Interest Income/ Expense Average Rates Earned/ Paid Average Balance Interest Income/ Expense Average Rates Earned/ Paid Average Balance Interest Income/ Expense Average Rates Earned/ Paid
Assets:
Interest-bearing deposits with other banks $ 91,234 $ 41 0.18% $ 53,767 $ 34 0.25% $ 57,734 $ 30 0.21% $ 38,556 $ 23 0.24% $ 56,679 $ 27 0.19%
Investment securities available for sale:
Taxable 286,889 897 1.24% 309,570 960 1.23% 307,371 1,067 1.40% 294,593 1,136 1.55% 272,869 1,055 1.53%
Tax-exempt 24,483 102 1.66% 18,481 82 1.77% 14,049 66 1.89% 9,622 53 2.22% 6,536 31 1.88%
Investment securities available for sale 311,372 999 1.28% 328,051 1,042 1.26% 321,420 1,133 1.42% 304,215 1,189 1.57% 279,405 1,086 1.54%
Investment securities - trading 1,400 16 4.55% 1,343 5 1.48% 1,546 12 3.12% 1,437 4 1.12% 1,319 8 2.41%
Loans and leases * 1,345,873 17,721 5.24% 1,303,783 17,089 5.21% 1,294,019 17,094 5.31% 1,299,552 17,234 5.33% 1,286,804 17,672 5.45%
Total interest earning assets 1,749,879 18,777 4.27% 1,686,944 18,170 4.28% 1,674,719 18,269 4.39% 1,643,760 18,450 4.51% 1,624,207 18,793 4.59%
Cash and due from banks 14,817 12,922 12,259 11,539 11,516
Less allowance for loan and lease losses (14,063) (13,337) (13,383) (13,089) (12,110)
Other assets 147,664 146,274 142,946 141,439 140,087
Total assets $ 1,898,297 $ 1,832,803 $ 1,816,541 $ 1,783,649 $ 1,763,700
Liabilities:
Savings, NOW and market rate deposits $ 890,629 $ 557 0.25% $ 849,966 $ 567 0.27% $ 805,953 $ 586 0.29% $ 767,240 $ 559 0.29% $ 751,415 $ 711 0.38%
Other wholesale deposits 38,932 38 0.39% 35,956 34 0.38% 47,463 43 0.36% 65,117 53 0.33% 65,127 50 0.30%
Wholesale deposits 10,689 20 0.74% 13,809 21 0.60% 22,280 24 0.43% 22,354 24 0.43% 27,749 73 1.04%
Time deposits 190,332 290 0.61% 178,711 316 0.70% 203,344 412 0.81% 210,973 490 0.93% 214,684 520 0.96%
Total interest-bearing deposits 1,130,582 905 0.32% 1,078,442 938 0.35% 1,079,040 1,065 0.40% 1,065,684 1,126 0.42% 1,058,975 1,354 0.51%
Subordinated debentures 7,283 79 4.32% 21,114 271 5.11% 22,500 291 5.20% 22,500 291 5.20% 22,500 287 5.06%
Junior subordinated debentures -- -- --% -- -- --% -- -- --% -- -- --% 10,294 236 9.10%
Short-term borrowings 13,243 3 0.09% 13,273 4 0.12% 13,149 5 0.15% 13,885 6 0.17% 15,147 6 0.16%
FHLB advances and other borrowings 159,559 798 1.99% 167,251 918 2.18% 163,908 924 2.27% 165,402 964 2.34% 140,177 889 2.52%
Total Borrowings 180,085 880 1.94% 201,638 1,193 2.35% 199,557 1,220 2.46% 201,787 1,261 2.51% 188,118 1,418 2.99%
Total interest-bearing liabilities 1,310,667 1,785 0.54% 1,280,080 2,131 0.66% 1,278,597 2,285 0.72% 1,267,471 2,387 0.76% 1,247,093 2,772 0.88%
Noninterest-bearing deposits 359,008 330,179 323,539 305,468 304,883
Other liabilities 27,175 25,100 23,158 25,259 24,991
Total noninterest-bearing liabilities 386,183 355,279 346,697 330,727 329,874
Total liabilities 1,696,850 1,635,359 1,625,294 1,598,198 1,576,967
Shareholders' equity 201,447 197,444 191,247 185,451 186,733
Total liabilities and shareholders' equity $ 1,898,297 $ 1,832,803 $ 1,816,541 $ 1,783,649 $ 1,763,700
Interest income to earning assets 4.27% 4.28% 4.39% 4.51% 4.59%
Net interest spread 3.73% 3.62% 3.67% 3.75% 3.71%
Effect of noninterest-bearing sources 0.13% 0.16% 0.17% 0.18% 0.20%
Tax-equivalent net interest income/ margin on earning assets $ 16,992 3.86% $ 16,039 3.78% $ 15,984 3.84% $ 16,063 3.93% $ 16,021 3.91%
Tax-equivalent adjustment $ 96 0.02% $ 88 0.02% $ 81 0.02% $ 78 0.02% $ 66 0.02%
* 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 Income and Expense and Tax-Equivalent Yields
For the Twelve Months ended December 31,
2012 2011
(dollars in thousands) Average Balance Interest Income/ Expense Average Rates Earned/ Paid Average Balance Interest Income/ Expense Average Rates Earned/ Paid
Assets:
Interest-bearing deposits with other banks $ 60,389 126 0.21% $ 52,390 $ 115 0.22%
Investment securities available for sale:
Taxable 299,598 4,064 1.36% 281,970 4,879 1.73%
Tax-exempt 16,685 298 1.79% 10,239 318 3.11%
Investment securities - available for sale 316,283 4,362 1.38% 292,209 5,197 1.78%
Investment securities - trading 1,431 37 2.59% 1,339 32 2.39%
Loans and leases * 1,310,883 69,141 5.27% 1,250,071 69,554 5.56%
Total interest earning assets 1,688,986 73,666 4.36% 1,596,009 74,898 4.69%
Cash and due from banks 12,890 12,078
Less allowance for loan and lease losses (13,469) (11,397)
Other assets 144,594 134,996
Total assets $1,833,001 $1,731,686
Liabilities:
Savings,NOW and market rate deposits $828,675 $ 2,269 0.27% $722,850 $ 2,958 0.41%
Other wholesale deposits 46,815 169 0.36% 67,793 224 0.33%
Wholesale deposits 17,256 88 0.51% 30,429 321 1.05%
Time deposits 195,778 1,507 0.77% 232,084 2,285 0.98%
Total interest-bearing deposits 1,088,524 4,033 0.37% 1,053,156 5,788 0.55%
FHLB advances and other borrowings 163,888 3,603 2.20% 145,421 3,677 2.53%
Short-term borrowings 13,525 21 0.16% 11,380 24 0.21%
Subordinated debt 18,327 931 5.08% 22,500 1,123 4.99%
Junior subordinated debentures -- -- --% 11,580 1,049 9.06%
Total Borrowings 195,740 4,555 2.33% 190,881 5,873 3.08%
Total interest-bearing liabilities 1,284,264 8,588 0.67% 1,244,037 11,661 0.94%
Noninterest-bearing deposits 329,631 287,553
Other liabilities 25,242 23,573
Total noninterest-bearing liabilities 354,873 311,126
Total liabilities 1,639,137 1,555,163
Shareholders' equity 193,864 176,523
Total liabilities and shareholders' equity $ 1,833,001 $1,731,686
Interest income to earning assets 4.36% 4.70%
Net interest spread 3.69% 3.76%
Effect of noninterest-bearing sources 0.16% 0.21%
Tax-equivalent net interest income/ margin on earning assets $ 65,078 3.85% $ 63,237 3.97%
Tax-equivalent adjustment $ 343 0.02% $ 336 0.02%
* 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.
** Effect of Correction of an Immaterial Accounting Error
In September 2012, the Corporation identified and corrected an immaterial accounting error related to two of its deferred compensation plans, as disclosed in the Corporation's Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on November 9, 2012. All periods presented in the tables accompanying this earnings release have been revised to reflect this correction. The following table details the correction:
Income Statement Effect
(dollars in thousands except share data)
For The Three Months Ended June 30, 2012 For The Three Months Ended March 31, 2012 For The Three Months Ended December 31, 2011
Originally Reported Corrected Difference Originally Reported Corrected Difference Originally Reported Corrected Difference
Net Income $ 5,261 $ 5,345 $ 84 $ 5,235 $ 5,074 $ (161) $ 5,170 $ 5,004 $ (166)
Basic earnings per common share $ 0.40 $ 0.41 $ 0.01 $ 0.40 $ 0.39 $ (0.01) $ 0.40 $ 0.39 $ (0.01)
Diluted earnings per common share $ 0.40 $ 0.40 $ -- $ 0.40 $ 0.39 $ (0.01) $ 0.39 $ 0.39 $ --
For The Twelve Months Ended December 31, 2011
Originally Reported Corrected Difference
Net Income $ 19,713 $ 19,602 $ (111)
Basic earnings per common share $ 1.55 $ 1.55 $ --
Diluted earnings per common share $ 1.54 $ 1.54 $ --
Balance Sheet Effect
(dollars in thousands except share data)
As of June 30, 2012 As of March 31, 2012 As of December 31, 2011
Originally Reported Corrected Difference Originally Reported Corrected Difference Originally Reported Corrected Difference
Total assets $ 1,854,885 $ 1,853,355 $ (1,530) $ 1,838,075 $ 1,836,411 $ (1,664) $ 1,774,907 $ 1,773,373 $ (1,534)
Retained earnings $ 132,837 $ 132,420 $ (417) $ 129,702 $ 129,201 $ (501) $ 126,582 $ 126,242 $ (340)
Cost of treasury stock $ 29,789 $ 30,901 $ 1,112 $ 29,833 $ 30,995 $ 1,162 $ 29,833 $ 31,027 $ 1,194
Shares of treasury stock 2,905,293 2,988,561 83,268 2,909,542 2,995,681 86,139 2,909,542 2,997,628 88,086

CONTACT: FOR MORE INFORMATION CONTACT: Ted Peters, Chairman 610-581-4800 J. Duncan Smith, CFO 610-526-2466Source:Bryn Mawr Bank Corporation