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Bryn Mawr Bank Corporation Reports First Quarter Earnings of $5.3 Million, Declares $0.17 Dividend

BRYN MAWR, Pa., April 25, 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 March 31, 2013, as compared to net income of $5.1 million and diluted earnings per share of $0.39 for the same period in 2012. Net income for the three months ended March 31, 2013 included pre-tax due diligence and merger-related expenses of $714 thousand as compared to $209 thousand for the same period in 2012.

Significant factors contributing to the results for the three months ended March 31, 2013, as compared to the same period in 2012, included increases in net interest income, wealth management revenues and net gain on sale of residential mortgage loans. These improvements were partially offset by increases in salaries and benefits expense, occupancy costs, due diligence and merger-related expenses and other operating expenses.

Ted Peters, Chairman and Chief Executive Officer, commented, "As our first quarter results show, we managed to sustain the strong quarterly performance that we delivered throughout last year. We anticipate continued improvement through 2013."

As announced on March 29, 2013, the Corporation has entered into a definitive agreement and plan of merger with MidCoast Community Bancorp, Inc ("MCBI"), pursuant to which MCBI will merge with and into the Corporation. The transaction is expected to close late in the third quarter of 2013 and is subject to the normal regulatory and MCBI shareholder approvals. Mr. Peters continued, "We look forward to working with our colleagues at MidCoast and anticipate a smooth closing later this year."

On April 25, 2013, the Board of Directors of the Corporation declared a quarterly dividend of $0.17 per share. The dividend is payable June 1, 2013 to shareholders of record as of May 7, 2013.

SIGNIFICANT ITEMS OF NOTE

Results of Operations – 1st Quarter 2013 Compared to 1st Quarter 2012

  • The overall results for the three months ended March 31, 2013, as compared to the same period in 2012, were affected by the May 2012 acquisition of the Davidson Trust Company ("DTC") and the November 2012 acquisition of deposits, loans and a branch location from First Bank of Delaware ("FBD").
  • Net income of $5.3 million for the three months ended March 31, 2013 increased $247 thousand, or 4.9%, from $5.1 million for the same period in 2012.
  • Net interest income for the three months ended March 31, 2013 was $17.4 million, an increase of $1.4 million, or 8.9%, from $16.0 million for the same period in 2012. The increase in net interest income between the periods was related to an 8.0% increase in average portfolio loans. This increase was primarily related to the acquisition of loans from FBD, which totaled $76.6 million at the time of the transaction. In addition, the Corporation's strategic decisions to prepay $22.5 million of subordinated debt during the third and fourth quarters of 2012 and $20.0 million of Federal Home Loan Bank ("FHLB") borrowings in the first quarter of 2013, along with the 16 basis point decline in rate paid on deposits, contributed significantly to the $941 thousand decrease in interest expense for the three months ended March 31, 2013, as compared to the same period in 2012.
  • Revenue from wealth management services for the three months ended March 31, 2013 was $8.3 million, a $2.1 million increase, or 34.0%, from the $6.2 million generated in the same period in 2012. Wealth Management Division assets under management, administration, supervision and brokerage as of March 31, 2013 were $7.0 billion, an increase of $1.8 billion, or 35.6%, from March 31, 2012. The increase was partially due to the May 2012 acquisition of DTC, which initially added approximately $1.0 billion to the Corporation's 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.
  • In addition to the increase in revenue for wealth management services mentioned above, non-interest income was also impacted by a $348 thousand increase on the gain on sale of residential mortgage loans. The volume of residential mortgage loans sold for the three months ended March 31, 2013 increased $17.6 million, or 51.8%, as compared to the same period in 2012.
  • Non-interest expense for the three months ended March 31, 2013 increased $3.4 million, to $20.2 million, as compared to $16.8 million for the same period in 2012. Contributing to this increase were a $505 thousand increase in due diligence and merger-related expenses, a $1.5 million increase in salaries and benefits, a $375 thousand increase in occupancy costs and a $1.4 million increase in other operating expenses between the periods. Salaries and benefits increased primarily as a result of the DTC acquisition and the addition of the branch and lending staff from FBD, an increase in incentive-based compensation related to residential mortgage loan sales as well as annual salary increases. The increased occupancy costs were related to the additions of DTC and FBD, in addition to the newly-opened full-service branch in Bala Cynwyd, Pennsylvania, which opened at the end of 2012. Partially offsetting these cost increases was a $570 thousand gain recognized on the curtailment of a nonqualified defined-benefit pension plan which was curtailed on January 1, 2013.
  • The $1.4 million increase in other operating expenses for the three months ended March 31, 2013, as compared to the same period in 2012 included a $347 thousand prepayment penalty related to the early payoff of FHLB borrowings. In addition, outsourced services, which included internal audit and IT support, accounted for a $347 thousand increase in the category between the periods, as well as increases of $166 thousand and $242 thousand in computer processing and telecommunications expense, respectively. The outsourced services, computer processing and telecommunications are expected to continue, as the Corporation is undertaking several technology infrastructure upgrades.
  • The tax-equivalent net interest margin of 3.85% for the three months ended March 31, 2013 was an 8 basis point decrease from the 3.93% tax-equivalent net interest margin for the same period in 2012. The 8 basis point decrease was the result of a $202.2 million increase in the average interest-earning assets and a $109.8 million increase in average interest-bearing liabilities which were offset by declines of 35 basis points and 33 basis points, in their tax-equivalent yield earned, and rate paid, respectively, between the periods. The incremental increase in average interest-earning assets of $202.2 million resulted in an increase in tax-equivalent net interest income of $1.4 million, representing an incremental tax-equivalent net interest margin of 2.90%. A significant portion of this increase in average interest-earning assets between periods was $78.8 million of interest-bearing deposits with other banks earning an average yield of only 24 basis points.
  • Nonperforming loans and leases of $12.8 million as of March 31, 2013 were 0.91% of total portfolio loans and leases, as compared $22.6 million, or 1.73% of total portfolio loans and leases as of March 31, 2012. This significant decrease in nonperforming loans was concentrated in the commercial and industrial and construction segments of the portfolio. For the three months ended March 31, 2013, the Corporation recorded net loan and lease charge-offs of $782 thousand, as compared to $713 thousand for the same period in 2012. The provision for loan and lease losses for the three months ended March 31, 2013 was $804 thousand, as compared with $1 million for the same period in 2012.

Results of Operations – 1st Quarter 2013 Compared to 4th Quarter 2012

  • Net income of $5.3 million for the three months ended March 31, 2013 was virtually unchanged from the $5.3 million recorded for the three months ended December 31, 2012.
  • Net interest income for the three months ended March 31, 2013 was $17.4 million, an increase of $513 thousand, or 3.0%, from $16.9 million for the three months ended December 31, 2012. The increase in net interest income between the periods was related to a $57.8 million increase, or 4.3%, in average portfolio loans. This increase was primarily related to the acquisition of loans from FBD, which totaled $76.6 million at the time of the transaction. In addition, the Corporation's strategic decision to prepay $20.0 million of FHLB borrowings in January 2013, along with its continued effort to monitor deposit rates, contributed significantly to the $340 thousand decrease in interest expense for the three months ended March 31, 2013, as compared to the three months ended December 31, 2012.
  • Non-interest income for the three months ended March 31, 2013 decreased $1.4 million as compared to the three months ended December 31, 2012 as gains on sale of residential mortgage loans declined $906 thousand, or 37.4%, between the periods. This decline was directly related to the volume of residential mortgage loans sold, which totaled $51.8 million for the three months ended March 31, 2013, as compared to $71.6 million for the three months ended December 31, 2012. Also, gain on sale of available for sale investment securities decreased by $281 thousand between the periods, as there were minimal sales of investment securities during the three months ended March 31, 2013. Revenues for wealth management services remained relatively unchanged for the three months ended March 31, 2013 as compared to the three months ended December 31, 2012, as the effects of the new business that was added during the first quarter of 2013 has not yet been realized.
  • Non-interest expense for the three months ended March 31, 2013 decreased $854 thousand, to $20.2 million, as compared to $21.1 million for the three months ended December 31, 2012. The decrease was attributable to the $570 thousand gain on curtailment of a nonqualified executive pension plan, due diligence and merger-related expense reductions of $476 thousand between periods, and lower professional fees, which showed a decrease of $456 thousand, primarily related to legal fees. Partially offsetting these cost reductions was a $407 thousand increase in other operating expenses between the periods, largely related to increases in outsourced services, which included internal audit and IT support, accounting for a $248 thousand increase in the category, as well as a $253 thousand increase in telecommunications expense. The IT support and telecommunications cost increases are related to technology infrastructure enhancements which include an increase in the Bank's data line bandwidth.
  • The tax-equivalent net interest margin of 3.85% for the three months ended March 31, 2013 was nearly unchanged from the three months ended December 31, 2012. The tax-equivalent yield earned and rate paid on interest-earning assets and interest-bearing liabilities, respectively, both declined by 11 basis points between the periods.
  • Nonperforming loans and leases as of March 31, 2013 were 0.91% of total portfolio loans and leases, as compared to 1.06% as of December 31, 2012. For the three months ended March 31, 2013, the Corporation recorded net loan and lease charge-offs of $782 thousand, as compared to $214 thousand for the three months ended December 31, 2012. The decline in nonperforming loans and leases resulted from charge-offs as well as $1.0 million of nonperforming loans which paid off during the three months ended March 31, 2013. The provision for loan and lease losses for the three months ended March 31, 2013 was $804 thousand, as compared with $1 million for the three months ended December 31, 2012.
  • Delinquent loans and leases in the 30 to 89 day past due category increased by $2.1 million as of March 31, 2013 as compared to December 31, 2012. This increase was primarily in the commercial and industrial loan category and was largely related to one lending relationship which matured at the end of 2012 and is in the process of refinancing with another lender.

Financial Condition – March 31, 2013 Compared to December 31, 2012

  • Deposits of $1.61 billion, as of March 31, 2013, decreased $24.0 million from December 31, 2012. The 1.5% decrease was comprised of decreases of $47.0 million and $13.4 million in time deposits and wholesale deposits, respectively, partially offset by increases of $29.0 million and $7.8 million in market-rate and non-interest-bearing deposits, respectively, between the dates.
  • The allowance for loan and lease losses, as of both March 31, 2013 and December 31, 2012 was $14.4 million, or 1.03% of portfolio loans and leases.
  • 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." In particular, the tangible equity ratios for both the Bank and the Corporation have improved from their December 31, 2012 levels, to 8.11% and 7.98%, respectively. These increases were primarily the result of increases in retained earnings and decreases in accumulated other comprehensive losses between the dates.
  • Total assets as of March 31, 2013 of $2.03 billion declined slightly from $2.04 billion as of December 31, 2012.
  • Total portfolio loans and leases of $1.41 billion, as of March 31, 2013 remained relatively unchanged from December 31, 2012 as increases in commercial mortgages and commercial and industrial loans were substantially offset by declines in home equity lines and loans. The current low-interest rate environment has prompted many home equity borrowers to refinance to fixed-rate residential mortgage products which are then sold into the secondary market.

EARNINGS CONFERENCE CALL

The Corporation will hold an earnings conference call at 8:30 a.m. EDT on Friday, April 26, 2013. Interested parties may participate by calling 1-888-317-6016. A taped replay of the conference call will be available one hour after the conclusion of the call and will remain available through May 13, 2013. The number to call for the taped replay is 1-877-344-7529 and the Replay Passcode is 10026844.

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
Mar 31,
2013
Dec 31,
2012
Sep 30,
2012
Jun 30,
2012
Mar 31,
2012
Interest income $ 18,855 $ 18,682 $ 18,081 $ 18,188 $ 18,372
Interest expense 1,446 1,786 2,130 2,285 2,387
Net interest income 17,409 16,896 15,951 15,903 15,985
Provision for loan and lease losses 804 1,000 1,000 1,003 1,000
Net interest income after provision for loan and lease losses 16,605 15,896 14,951 14,900 14,985
Fees for wealth management services 8,349 8,365 7,993 7,211 6,229
Loan servicing and other fees 451 473 432 436 435
Service charges on deposits 584 654 634 609 580
Net gain on sale of residential mortgage loans 1,518 2,424 1,837 1,304 1,170
Net gain on sale of available for sale investments 2 283 416 716 --
Net loss on sale of other real estate owned (52) -- (45) -- (41)
BOLI income 113 98 108 105 118
Other operating income 825 873 873 1,000 1,096
Non-interest income 11,790 13,170 12,248 11,381 9,587
Salaries and wages 8,810 8,848 8,703 8,075 7,505
Employee benefits 2,325 2,041 1,903 2,023 2,160
Net gain on curtailment of nonqualified pension plan (570) -- -- -- --
Occupancy and bank premises 1,750 1,616 1,488 1,395 1,375
Furniture fixtures and equipment 819 961 935 940 891
Advertising 412 363 267 359 320
Net impairment (recovery) of mortgage servicing rights 71 81 105 87 (110)
Amortization of mortgage servicing rights 212 248 243 256 219
Intangible asset amortization 661 673 669 560 509
FDIC insurance 258 255 262 234 219
Due diligence and merger-related expenses 714 1,190 316 914 209
Professional fees 575 1,031 609 571 657
Early extinguishment of debt costs and premiums 347 338 188 -- --
Other operating expenses 3,851 3,444 3,201 2,714 2,841
Non-interest expense 20,235 21,089 18,889 18,128 16,795
Income before income taxes 8,160 7,977 8,310 8,153 7,777
Income tax expense 2,840 2,673 2,885 2,808 2,704
Net income $ 5,320 $ 5,304 $ 5,425 $ 5,345 $ 5,073
Per share data:
Weighted average shares outstanding 13,205,538 13,157,295 13,149,050 13,072,963 12,979,746
Dilutive common shares 230,413 205,545 146,377 158,570 147,502
Adjusted weighted average dilutive shares 13,435,951 13,362,840 13,295,427 13,231,533 13,127,248
Basic earnings per common share $0.40 $0.40 $0.41 $0.41 $0.39
Diluted earnings per common share $0.40 $0.40 $0.41 $0.40 $0.39
Dividend declared per share $0.17 $0.16 $0.16 $0.16 $0.16
Effective tax rate 34.8% 33.5% 34.7% 34.4% 34.8%
Bryn Mawr Bank Corporation
Consolidated Balance Sheets - (unaudited)
(Dollars in thousands)
Mar 31,
2013
Dec 31,
2012
Sep 30,
2012
Jun 30,
2012
Mar 31,
2012
Assets
Interest-bearing deposits with banks $ 136,534 $ 159,483 $ 23,559 $ 68,324 $ 55,759
Investment securities - available for sale 327,799 316,614 316,644 331,407 328,215
Investment securities - trading 2,168 1,447 1,399 1,342 1,556
Loans held for sale 3,233 3,412 3,420 1,668 5,784
Portfolio loans:
Consumer 18,725 17,666 17,342 15,920 13,644
Commercial & industrial 293,171 291,620 274,351 264,116 270,766
Commercial mortgages 563,431 546,358 472,354 445,254 430,896
Construction 26,135 26,908 22,161 33,815 51,274
Residential mortgages 284,819 288,212 301,054 304,249 306,911
Home equity lines & loans 183,984 194,861 195,315 202,676 202,015
Leases 34,974 32,831 31,136 30,549 28,974
Total portfolio loans and leases 1,405,239 1,398,456 1,313,713 1,296,579 1,304,480
Earning assets 1,874,973 1,879,412 1,658,735 1,699,320 1,695,794
Cash and due from banks 12,013 16,203 13,526 13,147 11,939
Allowance for loan and lease losses (14,447) (14,424) (13,638) (13,140) (13,040)
Premises and equipment 31,072 31,170 29,238 28,911 28,680
Accrued interest receivable 6,168 5,955 5,963 6,009 6,037
Mortgage servicing rights 4,593 4,491 4,257 4,220 4,217
Goodwill 32,897 32,897 29,588 29,752 24,689
Other intangible assets 21,337 21,998 22,351 22,855 17,504
Bank owned life insurance 19,975 19,862 19,765 19,658 19,552
FHLB stock 10,663 10,761 10,717 10,746 11,009
Deferred income taxes 10,854 12,303 11,478 11,432 12,991
Other investments 4,347 4,346 4,438 4,424 4,095
Other assets 15,718 10,911 18,111 16,021 12,944
Total assets $ 2,030,163 $ 2,035,885 $ 1,814,529 $ 1,853,355 $ 1,836,411
Liabilities and shareholders' equity
Interest-bearing checking $ 263,820 $ 270,279 $ 226,206 $ 237,126 $ 235,841
Money market 588,478 559,470 493,829 468,314 418,503
Savings 135,124 129,091 132,402 133,204 135,912
Wholesale non-maturity deposits 32,879 45,162 37,458 35,365 66,518
Wholesale time deposits 11,325 12,421 9,942 22,505 22,062
Time deposits 171,575 218,586 171,498 193,081 212,003
Interest-bearing deposits 1,203,201 1,235,009 1,071,335 1,089,595 1,090,839
Non-interest bearing deposits 407,453 399,673 327,214 336,972 334,918
Total deposits 1,610,654 1,634,682 1,398,549 1,426,567 1,425,757
FHLB advances and other borrowings 168,636 161,315 155,416 169,589 164,697
Short-term borrowings 18,362 9,402 19,029 14,675 13,254
Subordinated debentures -- -- 15,000 22,500 22,500
Other liabilities 22,343 26,921 25,280 23,956 20,538
Shareholders' equity 210,168 203,565 201,255 196,068 189,665
Total liabilities and shareholders' equity $ 2,030,163 $ 2,035,885 $ 1,814,529 $ 1,853,355 $ 1,836,411
Bryn Mawr Bank Corporation
Consolidated Quarterly Average Balance Sheets - (unaudited)
(Dollars in thousands)
2013
1Q
2012
4Q
2012
3Q
2012
2Q
2012
1Q
Assets
Interest bearing deposits with banks $ 117,372 $ 91,234 $ 53,767 $ 57,734 $ 38,556
Investment securities - available for sale 323,247 311,372 328,051 321,420 304,215
Investment securities - trading 1,695 1,400 1,343 1,546 1,437
Loans held for sale 2,645 4,047 2,972 3,810 3,935
Portfolio loans and leases 1,401,038 1,341,826 1,300,811 1,290,209 1,295,617
Earning assets 1,845,997 1,749,879 1,686,944 1,674,719 1,643,760
Cash and due from banks 13,287 14,817 12,922 12,259 11,539
Allowance for loan and lease losses (14,693) (14,063) (13,337) (13,383) (13,089)
Premises and equipment 31,415 30,189 29,077 28,866 29,095
Goodwill 32,897 29,642 29,751 26,201 24,688
Other intangible assets 21,725 22,084 22,580 21,427 17,804
Bank owned life insurance 19,905 19,800 19,695 19,589 19,480
FHLB stock 10,544 10,572 10,717 10,553 11,223
Deferred income taxes 12,183 11,577 13,225 13,659 13,637
Other assets 21,294 23,800 21,229 22,651 25,512
Total assets $ 1,994,554 $ 1,898,297 $ 1,832,803 $ 1,816,541 $ 1,783,649
Liabilities and shareholders' equity
Interest-bearing deposits:
Interest-bearing checking $ 266,900 $ 241,730 $ 229,853 $ 236,131 $ 227,817
Money market 576,422 516,174 486,798 436,717 406,972
Savings 132,142 132,725 133,315 133,105 132,451
Wholesale non-maturity deposits 38,683 38,932 35,956 47,463 65,117
Wholesale time deposits 11,495 10,689 13,809 22,280 22,354
Time deposits 190,937 190,332 178,711 203,344 210,973
Total interest-bearing deposits 1,216,579 1,130,582 1,078,442 1,079,040 1,065,684
Non-interest bearing deposits 386,881 359,008 330,179 323,539 305,468
Total deposits 1,603,460 1,489,590 1,408,621 1,402,579 1,371,152
FHLB advances and other borrowings 149,699 159,559 167,251 163,908 165,402
Short-term borrowings 10,978 13,243 13,273 13,149 13,885
Subordinated debentures -- 7,283 21,114 22,500 22,500
Other liabilities 26,123 27,175 25,354 23,158 25,259
Shareholders' equity 204,294 201,447 197,190 191,247 185,451
Total liabilities and shareholders' equity $ 1,994,554 $ 1,898,297 $ 1,832,803 $ 1,816,541 $ 1,783,649
Bryn Mawr Bank Corporation
Consolidated Selected Financial Data - (unaudited)
(Dollars in thousands, except per share data )
March 31, 2013
For the period end: 2013
1Q
2012
4Q
2012
3Q
2012
2Q
2012
1Q
Asset Quality Data
Nonaccrual loans and leases $ 12,098 $ 14,040 $ 13,816 $ 14,929 $ 22,570
90 days or more past due loans, still accruing 728 728 -- 3,376 --
Nonperforming loans and leases 12,826 14,768 13,816 18,305 22,570
Other real estate owned 545 906 412 865 404
Total nonperforming assets $ 13,371 $ 15,674 $ 14,228 $ 19,170 $ 22,974
Troubled debt restructurings included in nonperforming assets $ 3,686 $ 3,106 $ 3,740 $ 4,005 $ 4,223
Troubled debt restructurings in compliance with modified terms 7,438 8,008 8,379 8,302 7,970
Total troubled debt restructurings $ 11,124 $ 11,114 $ 12,119 $ 12,307 $ 12,193
Nonperforming loans and leases / portfolio loans 0.91% 1.06% 1.05% 1.41% 1.73%
Nonperforming assets / assets 0.66% 0.77% 0.78% 1.03% 1.25%
Net loan charge-offs (recoveries) / average loans (annualized) 0.23% 0.08% 0.16% 0.26% 0.21%
Net lease (recoveries) charge-offs / average leases (annualized) -0.13% -0.38% -0.23% 0.94% 0.67%
Net loan and lease charge-offs (recoveries) / average loans and leases (annualized) 0.22% 0.07% 0.16% 0.28% 0.23%
Delinquency rate - loans and leases 30 days or more past due 1.23% 1.02% 1.01% 1.36% 1.52%
Delinquent loans and leases - 30-89 days past due $ 4,115 $ 2,053 $ 1,954 $ 2,722 $ 5,468
Delinquency rate - loans and leases 30-89 days past due 0.29% 0.15% 0.15% 0.21% 0.28%
Changes in the allowance for loan and lease losses:
Balance, beginning of period $ 14,425 $ 13,638 $ 13,140 $ 13,040 $ 12,753
Charge-offs (830) (450) (618) (960) (839)
Recoveries 48 237 116 57 126
Net (charge-offs) / recoveries (782) (213) (502) (903) (713)
Provision for loan and lease losses 804 1,000 1,000 1,003 1,000
Balance, end of period $ 14,447 $ 14,425 $ 13,638 $ 13,140 $ 13,040
Allowance for loan and lease losses / loans and leases 1.03% 1.03% 1.04% 1.01% 1.00%
Allowance for loan and lease losses / nonperforming loans and leases 112.6% 97.7% 98.7% 71.8% 57.8%
Bryn Mawr Bank Corporation
Consolidated Selected Financial Data - (unaudited)
(Dollars in thousands, except per share data )
March 31, 2013
For the period and period end: 2013
1Q
2012
4Q
2012
3Q
2012
2Q
2012
1Q
Selected ratios (annualized):
Return on average assets 1.08% 1.11% 1.18% 1.18% 1.14%
Return on average shareholders' equity 10.56% 10.47% 10.93% 11.24% 11.00%
Return on average tangible equity (2) 14.42% 14.09% 14.89% 14.97% 14.27%
Yield on loans and leases* 5.16% 5.24% 5.21% 5.31% 5.33%
Yield on interest earning assets* 4.16% 4.27% 4.28% 4.39% 4.51%
Cost of interest bearing funds 0.43% 0.54% 0.66% 0.72% 0.76%
Net interest margin* 3.85% 3.86% 3.78% 3.84% 3.93%
Book value per share $ 15.57 $ 15.17 $ 15.02 $ 14.73 $ 14.40
Tangible book value per share $ 11.55 $ 11.08 $ 11.14 $ 10.77 $ 11.20
Period end shares outstanding 13,500,413 13,414,552 13,399,635 13,316,469 13,168,555
Selected data:
Mortgage loans originated $ 65,105 $ 82,458 $ 64,455 $ 51,427 $ 55,385
Mortgage loans sold - servicing retained $ 51,414 $ 71,596 $ 54,992 $ 41,986 $ 32,778
Mortgage loans sold - servicing released 189 -- -- 2,238 1,223
Total mortgage loans sold $ 51,603 $ 71,596 $ 54,992 $ 44,224 $ 34,001
Yield on loans sold 2.94% 3.39% 3.34% 2.95% 3.44%
Mortgage loans serviced for others $ 603,734 $ 595,317 $ 583,859 $ 575,533 $ 571,440
Total wealth assets under management, administration, supervision and brokerage (1) $ 6,987,974 $ 6,663,212 $ 6,482,835 $ 6,275,940 $ 5,152,965
* 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 )
March 31, 2013
Investment Portfolio - AFS As of March 31, 2013 As of December 31, 2012
(dollars in thousands)


SECURITY DESCRIPTION

Amortized
Cost

Fair
Value
Net
Unrealized
Gain / (Loss)

Amortized
Cost

Fair
Value
Net
Unrealized
Gain / (Loss)
U.S. Treasury securities $ 102 $ 103 $ 1 $ -- $ -- $ --
Obligations of U.S. government and agencies 74,455 75,134 679 73,183 73,872 689
State & political subdivisions 37,382 37,511 129 30,243 30,384 141
Mortgage-backed securities 136,360 139,505 3,145 128,537 131,826 3,289
Collateralized mortgage obligations 57,020 57,682 662 62,116 62,703 587
Other debt securities 1,900 1,897 (3) 1,900 1,900 --
Bond - mutual funds 11,456 11,504 48 11,456 11,527 71
Investment CDs 2,335 2,345 10 2,350 2,364 14
Other investments 1,948 2,118 170 1,962 2,038 76
Total Investment Portfolio $ 322,958 $ 327,799 $ 4,841 $ 311,747 $ 316,614 $ 4,867
Capital Ratios
Bryn Mawr Trust Company Regulatory Minimum
To Be
Well Capitalized


3/31/2013


12/31/2012


9/30/2012


6/30/2012


3/31/2012
Tier I Capital to Risk Weighted Assets ("RWA") 6.00% 11.52% 11.20% 11.99% 11.75% 12.17%
Total (Tier II) Capital to RWA 10.00% 12.51% 12.20% 14.09% 14.36% 14.78%
Tier I Leverage Ratio 5.00% 8.70% 8.84% 9.23% 9.14% 9.56%
Tangible Equity Ratio 8.11% 7.72% 8.85% 8.41% 8.70%
Bryn Mawr Bank Corporation
Tier I Capital to RWA 6.00% 11.33% 11.02% 11.64% 11.30% 11.52%
Total (Tier II) Capital to RWA 10.00% 12.32% 12.02% 13.74% 13.90% 14.23%
Tier I Leverage Ratio 5.00% 8.58% 8.72% 8.98% 8.80% 9.07%
Tangible Equity Ratio 7.98% 7.60% 8.58% 8.07% 8.22%
Bryn Mawr Bank Corporation
Quarterly Average Balances and Tax-Equivalent Income and Expense and Tax Equivalent Yields - (unaudited)
1st Quarter 2013 4th Quarter 2012 3rd Quarter 2012 2nd Quarter 2012 1st Quarter 2012
(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 $ 117,372 $ 69 0.24% $ 91,234 $ 41 0.18% $ 53,767 $ 34 0.25% $ 57,734 $ 30 0.21% $ 38,556 $ 23 0.24%
Investment securities - available for sale:
Taxable 289,097 889 1.25% 286,889 897 1.24% 309,570 960 1.23% 307,371 1,067 1.40% 294,593 1,136 1.55%
Tax-exempt 34,150 125 1.48% 24,483 102 1.66% 18,481 82 1.77% 14,049 66 1.89% 9,622 53 2.22%
Investment securities - available for sale 323,247 1,014 1.27% 311,372 999 1.28% 328,051 1,042 1.26% 321,420 1,133 1.42% 304,215 1,189 1.57%
Investment securities - trading 1,695 16 3.83% 1,400 16 4.55% 1,343 5 1.48% 1,546 12 3.12% 1,437 4 1.12%
Loans and leases * 1,403,683 17,854 5.16% 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%
Total interest-earning assets 1,845,997 18,953 4.16% 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%
Cash and due from banks 13,287 14,817 12,922 12,259 11,539
Less allowance for loan and lease losses (14,693) (14,063) (13,337) (13,383) (13,089)
Other assets 149,963 147,664 146,274 142,946 141,439
Total assets $ 1,994,554 $ 1,898,297 $ 1,832,803 $ 1,816,541 $ 1,783,649
Liabilities:
Savings, NOW and market rate deposits $ 975,464 $ 479 0.20% $ 890,629 $ 557 0.25% $ 849,966 $ 567 0.27% $ 805,953 $ 586 0.29% $ 767,240 $ 559 0.29%
Other wholesale deposits 38,683 35 0.37% 38,932 38 0.39% 35,956 34 0.38% 47,463 43 0.36% 65,117 53 0.33%
Wholesale deposits 11,495 19 0.67% 10,689 20 0.74% 13,809 21 0.60% 22,280 24 0.43% 22,354 24 0.43%
Time deposits 190,937 242 0.51% 190,332 290 0.61% 178,711 316 0.70% 203,344 412 0.81% 210,973 490 0.93%
Total interest-bearing deposits 1,216,579 775 0.26% 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%
Subordinated debentures -- -- -- % 7,283 79 4.32% 21,114 271 5.11% 22,500 291 5.20% 22,500 291 5.20%
Junior subordinated debentures -- -- -- % -- -- -- % -- -- -- % -- -- -- % -- -- -- %
Short-term borrowings 10,978 3 0.11% 13,243 3 0.09% 13,273 4 0.12% 13,149 5 0.15% 13,885 6 0.17%
FHLB advances and other borrowings 149,699 668 1.81% 159,559 798 1.99% 167,251 918 2.18% 163,908 924 2.27% 165,402 964 2.34%
Total Borrowings 160,677 671 1.69% 180,085 880 1.94% 201,638 1,193 2.35% 199,557 1,220 2.46% 201,787 1,261 2.51%
Total interest-bearing liabilities 1,377,256 1,446 0.43% 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%
Noninterest-bearing deposits 386,881 359,008 330,179 323,539 305,468
Other liabilities 26,123 27,175 25,100 23,158 25,259
Total noninterest-bearing liabilities 413,004 386,183 355,279 346,697 330,727
Total liabilities 1,790,260 1,696,850 1,635,359 1,625,294 1,598,198
Shareholders' equity 204,294 201,447 197,444 191,247 185,451
Total liabilities and shareholders' equity $ 1,994,554 $ 1,898,297 $ 1,832,803 $ 1,816,541 $ 1,783,649
Interest income to earning assets 4.16% 4.27% 4.28% 4.39% 4.51%
Net interest spread 3.73% 3.73% 3.62% 3.67% 3.75%
Effect of noninterest-bearing sources 0.12% 0.13% 0.16% 0.17% 0.18%
Tax-equivalent net interest income/ margin on earning assets $ 17,507 3.85% $ 16,992 3.86% $ 16,039 3.78% $ 15,984 3.84% $ 16,063 3.93%
Tax-equivalent adjustment $ 98 0.03% $ 96 0.02% $ 88 0.02% $ 81 0.02% $ 78 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.

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