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Bryn Mawr Bank Corporation Reports Record Earnings Led by Wealth Revenue and Improved Margin

BRYN MAWR, Pa., July 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 $6.3 million and diluted earnings per share of $0.46 for the three months ended June 30, 2013, as compared to net income of $5.3 million and diluted earnings per share of $0.40 for the same period in 2012. Net income for the three months ended June 30, 2013 included pre-tax due diligence and merger-related expenses of $688 thousand as compared to $914 thousand for the same period in 2012.

Significant factors contributing to the results for the three months ended June 30, 2013, as compared to the same period in 2012, included increases in wealth management revenues and net interest income, which were partially offset by increases in salaries and benefits expense, occupancy costs and other operating expenses.

For the six months ended June 30, 2013, net income of $11.6 million was a $1.2 million increase from the $10.4 million recorded for the same period in 2012. Diluted earnings per share for the six months ended June 30, 2013 increased $0.07, to $0.86, as compared to $0.79 for the same period last year.

Ted Peters, Chairman and Chief Executive Officer, commented, "We are pleased with our continued strong quarterly results. The uptick in our net interest margin and the steady increase in wealth management revenues are encouraging signs." Mr. Peters added, "The acquisition of Davidson Trust and the First Bank of Delaware transaction, both in 2012, have been nicely accretive to earnings."

On July 25, 2013, the Board of Directors of the Corporation declared a quarterly dividend of $0.17 per share. The dividend is payable September 1, 2013 to shareholders of record as of August 6, 2013.

SIGNIFICANT ITEMS OF NOTE

Results of Operations

The overall results for the three months ended June 30, 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 purchase of deposits, loans and a branch location from First Bank of Delaware ("FBD").

  • Net income of $6.3 million for the three months ended June 30, 2013 increased $907 thousand, or 17.0%, from $5.3 million for the same period in 2012.
  • Net interest income for the three months ended June 30, 2013 was $17.9 million, an increase of $2.0 million, or 12.7%, from $15.9 million for the same period in 2012. The increase in net interest income between the periods was largely the result of a $134.3 million, or 10.4%, increase in average portfolio loans. This increase was partially related to loans acquired from FBD, which totaled $65.9 million as of June 30, 2013. In addition, the Corporation's 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 $991 thousand decrease in interest expense for the three months ended June 30, 2013, as compared to the same period in 2012.
  • Revenue from wealth management services for the three months ended June 30, 2013 was $9.1 million, a $1.9 million increase, or 26.1%, from the $7.2 million generated in the same period in 2012. Wealth Management Division assets under management, administration, supervision and brokerage as of June 30, 2013 were $6.9 billion, an increase of $579 million, or 9.2%, from June 30, 2012. Organic growth due to the success of the division's strategic initiatives was supplemented by market appreciation and other new business between the dates.
  • In addition to the increase in revenue for wealth management services mentioned above, non-interest income was also impacted by a $369 thousand increase in other operating income and a $188 thousand increase in gain on sale of residential mortgage loans for the three months ended June 30, 2013 as compared to the same period in 2012. The volume of residential mortgage loans sold for the three months ended June 30, 2013 increased slightly to $46.6 million as compared $44.2 million for the same period in 2012, with a 25 basis point increase in rate of gain on sale. Partially offsetting these improvements in non-interest income was a $716 thousand decrease in gain on sale of available for sale investment securities and a $141 thousand increase in loss on sale of other real estate owned between the periods.
  • Non-interest expense for the three months ended June 30, 2013 increased $2.4 million, to $20.5 million, as compared to $18.1 million for the same period in 2012. Contributing to this increase were a $1.2 million increase in salaries and benefits, a $614 thousand increase in occupancy costs and an $889 thousand increase in other operating expenses between the periods. Salaries and benefits increased primarily as a result of the addition of the branch and lending staff from FBD, the staffing related to the DTC acquisition, new personnel for our newly-opened full-service branch in Bala Cynwyd, Pennsylvania, which opened at the end of 2012, as well as annual salary increases. In addition to these new facilities, increased compliance requirements have necessitated the hiring of several new staff positions within our headquarters. The increased occupancy costs were also related to the additions of DTC, FBD, and our new branch in Bala Cynwyd. The increase in other operating expenses was largely related to IT infrastructure improvements. Partially offsetting these cost increases were a $226 thousand decrease in due diligence and merger-related costs and a $178 thousand decrease in the impairment of mortgage servicing rights for the three months ended June 30, 2013, as compared to the same period in 2012. Recent residential mortgage rate increases has lengthened the average life of our serviced-mortgage portfolio, resulting in a $91 thousand net recovery of prior impairments of our mortgage servicing rights, for the second quarter of 2013.
  • The tax-equivalent net interest margin of 3.98% for the three months ended June 30, 2013 was a 14 basis point increase from the 3.84% tax-equivalent net interest margin for the same period in 2012. The increase was the result of a $141.2 million increase in average interest-earning assets, partially offset by a $61.9 million increase in average interest-bearing liabilities between the periods. While the tax-equivalent yield earned on average interest-earning assets declined by 12 basis points between periods, the tax-equivalent rate paid on average interest-bearing liabilities dropped by 34 basis points. This significant reduction in rate paid on interest-bearing liabilities was largely related to the prepayment of $22.5 million of subordinated debt during the third and fourth quarters of 2012, as well as the prepayment of $20.0 million of Federal Home Loan Bank ("FHLB") advances during the first quarter of 2013.
  • Nonperforming loans and leases of $10.5 million as of June 30, 2013 were 0.73% of total portfolio loans and leases, as compared $14.8 million, or 1.06% of total portfolio loans and leases as of December 31, 2012. This $4.3 million decrease in nonperforming loans was concentrated in the construction, small business and home equity segments of the portfolio and was partially the result of $1.8 million of charge-offs of impaired loans, as well as additions of $566 thousand to other real estate owned related to three residential properties. For the three months ended June 30, 2013, the Corporation recorded net loan and lease charge-offs of $1.0 million, as compared to $903 thousand for the same period in 2012. The provision for loan and lease losses for each of the three month periods ended June 30, 2013 and 2012 was $1.0 million.

Financial Condition – June 30, 2013 Compared to December 31, 2012

  • Deposits of $1.55 billion, as of June 30, 2013, decreased $85.0 million from December 31, 2012. The 5.2% decrease was primarily comprised of decreases of $57.4 million and $15.1 million in time deposits and wholesale deposits, respectively, between the dates. The Corporation has continued its planned run-off of its higher-rate certificates of deposit.
  • The allowance for loan and lease losses as of June 30, 2013 was $14.4 million, or 1.01% of portfolio loans and $14.4 million, or 1.03% of portfolio loans and leases as of December 31, 2012.
  • 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 of 7.72% and 7.60%, to 8.29% and 8.21%, respectively, at June 30, 2013. These increases were primarily the result of increases in retained earnings and issuance of common stock, along with a slight decline in total assets between the dates.
  • Total assets as of June 30, 2013 of $2.01 billion declined slightly from $2.04 billion as of December 31, 2012.
  • Total portfolio loans and leases of $1.43 billion as of June 30, 2013 increased by $32.5 million from December 31, 2012 as increases in commercial mortgages were partially offset by declines in residential mortgages and home equity lines and loans.

EARNINGS CONFERENCE CALL

The Corporation will hold an earnings conference call at 8:30 a.m. EDT on Friday, July 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 August 12, 2013. The number to call for the taped replay is 1-877-344-7529 and the conference number is 10030504.

The conference call will be simultaneously broadcast live over the Internet through a webcast on the investor relations portion of the Bryn Mawr Bank Corporation's website. To access the call, please visit the website at http://services.choruscall.com/links/bmtc130726.html. An online archive of the webcast will be available within one hour of the conclusion of the call. The Corporation has also recently expanded its Investor Relations website to include added resources and information for shareholders and interested investors. Interested parties are encouraged to utilize the expanded resources of the site for more information on Bryn Mawr Bank Corporation.

FORWARD LOOKING STATEMENTS AND SAFE HARBOR

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

Such forward-looking statements involve known and unknown risks and uncertainties. A number of factors, many of which are beyond the Corporation's control, could cause our actual results, events or developments, or industry results, to be materially different from any future results, events or developments expressed, implied or anticipated by such forward-looking statements, and so our business and financial condition and results of operations could be materially and adversely affected. Such factors include, among others, 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
Jun 30, Mar 31, Dec 31, Sep 30, Jun 30,
2013 2013 2012 2012 2012
Interest income $ 19,217 $ 18,855 $ 18,682 $ 18,081 $ 18,188
Interest expense 1,294 1,446 1,786 2,130 2,285
Net interest income 17,923 17,409 16,896 15,951 15,903
Provision for loan and lease losses 1,000 804 1,000 1,000 1,003
Net interest income after provision for loan and lease losses 16,923 16,605 15,896 14,951 14,900
Fees for wealth management services 9,094 8,349 8,365 7,993 7,211
Loan servicing and other fees 448 451 473 432 436
Service charges on deposits 596 584 654 634 609
Net gain on sale of residential mortgage loans 1,492 1,518 2,424 1,837 1,304
Net gain on sale of invertment securities available for sale -- 2 283 416 716
Net loss on sale of other real estate owned (141) (52) -- (45) --
Bank owned life insurance income 85 113 98 108 105
Other operating income 1,369 825 873 873 1,000
Non-interest income 12,943 11,790 13,170 12,248 11,381
Salaries and wages 9,086 8,810 8,848 8,703 8,075
Employee benefits 2,212 2,325 2,041 1,903 2,023
Net gain on curtailment of nonqualified pension plan (120) (570) -- -- --
Occupancy and bank premises 1,728 1,750 1,616 1,488 1,395
Furniture fixtures and equipment 1,221 819 961 935 940
Advertising 380 412 363 267 359
Net (recovery) impairment of mortgage servicing rights (91) 71 81 105 87
Amortization of mortgage servicing rights 218 212 248 243 256
Amortization of intangible assets 660 661 673 669 560
FDIC insurance 275 258 255 262 234
Due diligence and merger-related expenses 688 714 1,190 316 914
Professional fees 664 575 1,031 609 571
Early extinguishment of debt - costs and premiums -- 347 338 188 --
Other operating expenses 3,603 3,851 3,444 3,201 2,714
Non-interest expense 20,524 20,235 21,089 18,889 18,128
Income before income taxes 9,342 8,160 7,977 8,310 8,153
Income tax expense 3,090 2,840 2,673 2,885 2,808
Net income $ 6,252 $ 5,320 $ 5,304 $ 5,425 $ 5,345
Per share data:
Weighted average shares outstanding 13,280,624 13,205,538 13,157,295 13,149,050 13,072,963
Dilutive common shares 227,150 230,413 205,545 146,377 158,570
Adjusted weighted average dilutive shares 13,507,774 13,435,951 13,362,840 13,295,427 13,231,533
Basic earnings per common share $0.47 $0.40 $0.40 $0.41 $0.41
Diluted earnings per common share $0.46 $0.40 $0.40 $0.41 $0.40
Dividend declared per share $0.17 $0.17 $0.16 $0.16 $0.16
Effective tax rate 33.1% 34.8% 33.5% 34.7% 34.4%
Bryn Mawr Bank Corporation
Consolidated Statements of Income - (unaudited)
(Dollars in thousands, except per share data)
For The Six Months Ended June 30,
2013 2012
Interest income $ 38,072 $ 36,560
Interest expense 2,740 4,672
Net interest income 35,332 31,888
Provision for loan and lease losses 1,804 2,003
Net interest income after provision for loan and lease losses 33,528 29,885
Fees for wealth management services 17,443 13,440
Loan servicing and other fees 899 871
Service charges on deposits 1,180 1,189
Net gain on sale of residential mortgage loans 3,010 2,474
Net gain on sale of investment securities available for sale 2 716
Bank owned life insurance income 198 223
Net loss on sale of other real estate owned (193) (41)
Other operating income 2,194 2,096
Non-interest income 24,733 20,968
Salaries and wages 17,896 15,580
Employee benefits 4,537 4,183
Net gain on curtailment of nonqualified pension plan (690) --
Occupancy and bank premises 3,478 2,769
Furniture fixtures and equipment 2,040 1,831
Advertising 792 679
Net recovery of mortgage servicing rights (20) (23)
Amortization of mortgage servicing rights 430 475
Amortization of intangible assets 1,321 1,069
FDIC insurance 533 453
Due diligence and merger-related expenses 1,402 1,123
Professional fees 1,239 1,228
Early extinguishment of debt - costs and premiums 347 --
Other operating expenses 7,454 5,555
Non-interest expense 40,759 34,922
Income before income taxes 17,502 15,931
Income tax expense 5,930 5,512
Net income $ 11,572 $ 10,419
Per share data:
Weighted average shares outstanding 13,243,289 13,026,354
Dilutive common shares 228,782 127,510
Adjusted weighted average shares 13,472,071 13,153,864
Basic earnings per common share $0.87 $0.80
Diluted earnings per common share $0.86 $0.79
Dividend declared per share $0.34 $0.32
Effective tax rate 33.9% 34.6%
Bryn Mawr Bank Corporation
Consolidated Balance Sheets - (unaudited)
(Dollars in thousands)
Jun 30, Mar 31, Dec 31, Sep 30, June 30,
2013 2013 2012 2012 2012
Assets
Interest-bearing deposits with banks $ 95,903 $ 136,534 $ 159,483 $ 23,559 $ 68,324
Investment securities - available for sale 322,961 327,799 316,614 316,644 331,407
Investment securities - trading 2,180 2,168 1,447 1,399 1,342
Loans held for sale 2,207 3,233 3,412 3,420 1,668
Portfolio loans:
Consumer 18,404 18,725 17,666 17,342 15,920
Commercial & industrial 296,073 293,171 291,620 274,351 264,116
Commercial mortgages 587,261 563,431 546,358 472,354 445,254
Construction 28,718 26,135 26,908 22,161 33,815
Residential mortgages 280,687 284,819 288,212 301,054 304,249
Home equity lines & loans 183,006 183,984 194,861 195,315 202,676
Leases 36,770 34,974 32,831 31,136 30,549
Total portfolio loans and leases 1,430,919 1,405,239 1,398,456 1,313,713 1,296,579
Earning assets 1,854,170 1,874,973 1,879,412 1,658,735 1,699,320
Cash and due from banks 14,208 12,013 16,203 13,526 13,147
Allowance for loan and lease losses (14,444) (14,447) (14,424) (13,638) (13,140)
Premises and equipment 30,947 31,072 31,170 29,238 28,911
Accrued interest receivable 6,097 6,168 5,955 5,963 6,009
Mortgage servicing rights 4,790 4,593 4,491 4,257 4,220
Goodwill 32,843 32,897 32,897 29,588 29,752
Other intangible assets 20,677 21,337 21,998 22,351 22,855
Bank owned life insurance 20,060 19,975 19,862 19,765 19,658
FHLB stock 13,028 10,663 10,761 10,717 10,746
Deferred income taxes 11,788 10,854 12,303 11,478 11,432
Other investments 4,378 4,347 4,346 4,438 4,424
Other assets 10,980 15,718 10,911 18,111 16,021
Total assets $ 2,009,522 $ 2,030,163 $ 2,035,885 $ 1,814,529 $ 1,853,355
Liabilities and shareholders' equity
Interest-bearing deposits:
Interest-bearing checking $ 262,316 $ 263,820 $ 270,279 $ 226,206 $ 237,126
Money market 551,750 588,478 559,470 493,829 468,314
Savings 136,307 135,124 129,091 132,402 133,204
Wholesale non-maturity deposits 30,315 32,879 45,162 37,458 35,365
Wholesale time deposits 12,139 11,325 12,421 9,942 22,505
Time deposits 161,146 171,575 218,586 171,498 193,081
Total interest-bearing deposits 1,153,973 1,203,201 1,235,009 1,071,335 1,089,595
Non-interest-bearing deposits 395,742 407,453 399,673 327,214 336,972
Total deposits 1,549,715 1,610,654 1,634,682 1,398,549 1,426,567
Long-term FHLB advances and other borrowings 152,642 148,636 161,315 155,416 169,589
Short-term borrowings 71,768 38,362 9,402 19,029 14,675
Subordinated debentures -- -- -- 15,000 22,500
Other liabilities 22,929 22,343 26,921 25,280 23,956
Shareholders' equity 212,468 210,168 203,565 201,255 196,068
Total liabilities and shareholders' equity $ 2,009,522 $ 2,030,163 $ 2,035,885 $ 1,814,529 $ 1,853,355
Bryn Mawr Bank Corporation
Consolidated Quarterly Average Balance Sheets - (unaudited)
(Dollars in thousands)
For The Three Months Ended
Jun 30, Mar 31, Dec 31, Sep 30, June 30,
2013 2013 2012 2012 2012
Assets
Interest-bearing deposits with banks $ 59,981 $ 117,372 $ 91,234 $ 53,767 $ 57,734
Investment securities - available for sale 325,729 323,247 311,372 328,051 321,420
Investment securities - trading 2,168 1,695 1,400 1,343 1,546
Loans held for sale 2,233 2,645 4,047 2,972 3,810
Portfolio loans and leases 1,425,836 1,401,038 1,341,826 1,300,811 1,290,209
Earning assets 1,815,947 1,845,997 1,749,879 1,686,944 1,674,719
Cash and due from banks 12,876 13,287 14,817 12,922 12,259
Allowance for loan and lease losses (14,625) (14,693) (14,063) (13,337) (13,383)
Premises and equipment 31,254 31,415 30,189 29,077 28,866
Goodwill 32,896 32,897 29,642 29,751 26,201
Other intangible assets 21,055 21,725 22,084 22,580 21,427
Bank owned life insurance 20,005 19,905 19,800 19,695 19,589
FHLB stock 10,430 10,544 10,572 10,717 10,553
Deferred income taxes 10,997 12,183 11,577 11,179 12,212
Other assets 25,296 21,294 23,800 23,275 24,098
Total assets $ 1,966,131 $ 1,994,554 $ 1,898,297 $ 1,832,803 $ 1,816,541
Liabilities and shareholders' equity
Interest-bearing deposits:
Interest-bearing checking $ 263,842 $ 266,900 $ 241,730 $ 229,853 $ 236,131
Money market 571,327 576,422 516,174 486,798 436,717
Savings 134,485 132,142 132,725 133,315 133,105
Wholesale non-maturity deposits 31,124 38,683 38,932 35,956 47,463
Wholesale time deposits 11,610 11,495 10,689 13,809 22,280
Time deposits 164,247 190,937 190,332 178,711 203,344
Total interest-bearing deposits 1,176,635 1,216,579 1,130,582 1,078,442 1,079,040
Non-interest bearing deposits 391,387 386,881 359,008 330,179 323,539
Total deposits 1,568,022 1,603,460 1,489,590 1,408,621 1,402,579
Long-term FHLB advances and other borrowings 150,578 148,699 159,559 167,251 163,908
Short-term borrowings 13,248 11,978 13,243 13,273 13,149
Subordinated debentures -- -- 7,283 21,114 22,500
Other liabilities 23,617 26,123 27,175 25,354 23,158
Shareholders' equity 210,666 204,294 201,447 197,190 191,247
Total liabilities and shareholders' equity $ 1,966,131 $ 1,994,554 $ 1,898,297 $ 1,832,803 $ 1,816,541
Bryn Mawr Bank Corporation
Consolidated Average Balance Sheets - (unaudited)
(Dollars in thousands)
For The Six Months Ended June 30,
2013 2012
Assets
Interest bearing deposits with banks $ 88,518 $ 48,144
Investment securities - available for sale 324,495 312,817
Investment securities - trading 1,933 1,492
Loans held for sale 2,438 3,872
Portfolio loans and leases 1,413,506 1,292,914
Earning assets 1,830,890 1,659,239
Cash and due from banks 13,080 11,899
Allowance for loan and lease losses (14,659) (13,236)
Premises and equipment 31,334 28,981
Goodwill 32,897 25,444
Intangible assets 21,388 19,616
Bank owned life insurance 19,955 19,534
FHLB stock 10,448 11,114
Deferred income taxes 11,586 12,925
Other assets 23,345 24,579
Total assets $ 1,980,264 $ 1,800,095
Liabilities and shareholders' equity
Interest-bearing deposits:
Interest-bearing checking $ 265,363 $ 231,975
Money market 573,860 421,844
Savings 133,321 132,778
Wholesale non-maturity deposits 34,882 56,290
Wholesale time deposits 11,553 22,317
Time deposits 177,518 207,158
Total interest-bearing deposits 1,196,497 1,072,362
Non-interest-bearing deposits 389,146 314,504
Total deposits 1,585,643 1,386,866
Long-term FHLB advances and other borrowings 151,120 164,943
Short-term borrowings 11,125 13,229
Subordinated debentures -- 22,500
Junior subordinated debentures -- --
Other liabilities 24,878 24,208
Shareholders' equity 207,498 188,349
Total liabilities and shareholders' equity $ 1,980,264 $ 1,800,095
Bryn Mawr Bank Corporation
Consolidated Selected Financial Data - (unaudited)
(Dollars in thousands, except per share data)
June 30, 2013
For The Three Months Ended
June 30, March 31, December 31, September 30, June 30,
2013 2013 2012 2012 2012
Asset Quality Data
Nonaccrual loans and leases $ 10,488 $ 12,098 $ 14,040 $ 13,846 $ 14,929
90 days or more past due loans, still accruing -- 728 728 -- 3,376
Nonperforming loans and leases 10,488 12,826 14,768 13,846 18,305
Other real estate owned 1,205 545 906 412 865
Total nonperforming assets $ 11,693 $ 13,371 $ 15,674 $ 14,258 $ 19,170
Troubled debt restructurings included in nonperforming assets $ 2,869 $ 3,686 $ 3,106 $ 3,740 $ 4,005
Troubled debt restructurings in compliance with modified terms 8,157 7,438 8,008 8,379 8,302
Total troubled debt restructurings $ 11,026 $ 11,124 $ 11,114 $ 12,119 $ 12,307
Nonperforming loans and leases / portfolio loans 0.73% 0.91% 1.06% 1.05% 1.41%
Nonperforming assets / assets 0.58% 0.66% 0.77% 0.78% 1.03%
Net loan charge-offs / average loans (annualized) 0.29% 0.23% 0.08% 0.16% 0.26%
Net lease charge-offs (recoveries) / average leases (annualized) 0.11% -0.13% -0.38% -0.23% 0.94%
Net loan and lease charge-offs / average loans and leases (annualized) 0.28% 0.22% 0.07% 0.16% 0.28%
Delinquency rate* - Performing and nonperforming loans and leases 30 days or more past due 0.73% 1.23% 1.02% 1.01% 1.36%
Performing loans and leases - 30-89 days past due $ 2,328 $ 4,115 $ 2,053 $ 1,954 $ 2,722
Delinquency rate* - Performing loans and leases - 30-89 days past due 0.16% 0.29% 0.15% 0.15% 0.21%
* to total loans and leases
Changes in the allowance for loan and lease losses:
Balance, beginning of period $ 14,447 $ 14,425 $ 13,638 $ 13,140 $ 13,040
Charge-offs (1,164) (830) (450) (618) (960)
Recoveries 161 48 237 116 57
Net charge-offs (1,003) (782) (213) (502) (903)
Provision for loan and lease losses 1,000 804 1,000 1,000 1,003
Balance, end of period $ 14,444 $ 14,447 $ 14,425 $ 13,638 $ 13,140
Allowance for loan and lease losses / loans and leases 1.01% 1.03% 1.03% 1.04% 1.01%
Allowance for loan and lease losses / nonperforming loans and leases 137.7% 112.6% 97.7% 98.5% 71.8%
Bryn Mawr Bank Corporation
Consolidated Selected Financial Data - (unaudited)
(Dollars in thousands, except per share data)
June 30, 2013
For The Three Months Ended or As Of
June 30, March 31, December 31, September 30, June 30,
2013 2013 2012 2012 2012
Selected ratios (annualized):
Return on average assets 1.28% 1.08% 1.11% 1.18% 1.18%
Return on average shareholders' equity 11.90% 10.56% 10.47% 10.93% 11.24%
Return on average tangible equity (2) 16.00% 14.42% 14.09% 14.89% 14.97%
Yield on loans and leases* 5.13% 5.16% 5.24% 5.21% 5.31%
Yield on interest earning assets* 4.27% 4.16% 4.27% 4.28% 4.39%
Cost of interest bearing funds 0.39% 0.43% 0.54% 0.66% 0.72%
Net interest margin* 3.98% 3.85% 3.86% 3.78% 3.84%
Book value per share $ 15.71 $ 15.57 $ 15.17 $ 15.02 $ 14.73
Tangible book value per share $ 11.75 $ 11.55 $ 11.08 $ 11.14 $ 10.77
Period end shares outstanding 13,528,078 13,500,413 13,414,552 13,399,635 13,316,469
Selected data:
Mortgage loans originated $ 55,066 $ 65,105 $ 82,458 $ 64,455 $ 51,427
Mortgage loans sold - servicing retained $ 46,209 $ 51,414 $ 71,596 $ 54,992 $ 41,986
Mortgage loans sold - servicing released 347 189 -- -- 2,238
Total mortgage loans sold $ 46,556 $ 51,603 $ 71,596 $ 54,992 $ 44,224
Yield on loans sold 3.20% 2.94% 3.39% 3.34% 2.95%
Mortgage loans serviced for others $ 623,498 $ 603,734 $ 595,317 $ 583,859 $ 575,533
Total wealth assets under management, administration, supervision and brokerage (1) $ 6,854,838 $ 6,987,974 $ 6,663,212 $ 6,482,835 $ 6,275,940
* 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.
For The Six Months Ended June 30,
2013 2012
Selected ratios (annualized):
Return on average assets 1.18% 1.17%
Return on average shareholders' equity 11.25% 11.11%
Return on average tangible equity (1) 15.23% 14.57%
Yield on loans and leases* 5.15% 5.32%
Yield on interest-earning assets* 4.22% 4.45%
Cost of interest-bearing liabilities 0.41% 0.74%
Net interest margin* 3.91% 3.88%
Selected data:
Mortgage loans originated $ 120,171 $ 106,812
Mortgage loans sold - servicing retained $ 97,623 $ 74,764
Mortgage loans sold - servicing released 536 3,461
Total mortgage loans sold $ 98,159 $ 78,225
* Yield on loans and leases, interest earning assets and net interest margin are calculated on a tax-equivalent basis.
(1) Average tangible equity equals average shareholders' equity minus average goodwill and average other intangible assets.
Bryn Mawk Bank Corporation
Consolidated Selected Financial Data - (unaudited)
(Dollars in thousdands, except per share data)
June 30, 2013
Investment Portfolio - Available for Sale As of June 30, 2013 As of December 31, 2012
(dollars in thousands)
Net Net
Amortized Fair Unrealized Amortized Fair Unrealized
SECURITY DESCRIPTION Cost Value Gain / (Loss) Cost Value Gain / (Loss)
U.S. Treasury securities $ 102 $ 100 $ (2) $ -- $ -- $ --
Obligations of U.S. government and agencies 82,170 81,159 (1,011) 73,183 73,872 689
State & political subdivisions 39,353 39,055 (298) 30,243 30,384 141
Mortgage-backed securities 131,860 132,697 837 128,537 131,826 3,289
Collateralized mortgage obligations 51,780 51,937 157 62,116 62,703 587
Other debt securities 2,400 2,398 (2) 1,900 1,900 --
Bond mutual funds 11,456 11,423 (33) 11,456 11,527 71
Investment CDs 2,120 2,125 5 2,350 2,364 14
Other investments 1,909 2,067 158 1,962 2,038 76
Total Investment Portfolio $ 323,150 $ 322,961 $ (189) $ 311,747 $ 316,614 $ 4,867
Capital Ratios
Regulatory Minimum
Bryn Mawr Trust Company To Be June 30, March 31, December 31, September 30, June 30,
Well Capitalized 2013 2013 2012 2012 2012
Tier I Capital to Risk Weighted Assets ("RWA") 6.00% 11.58% 11.52% 11.20% 11.99% 11.75%
Total (Tier II) Capital to RWA 10.00% 12.55% 12.51% 12.20% 14.09% 14.36%
Tier I Leverage Ratio 5.00% 9.07% 8.70% 8.84% 9.23% 9.14%
Tangible Equity Ratio 8.29% 8.11% 7.72% 8.85% 8.41%
Bryn Mawr Bank Corporation
Tier I Capital to RWA 6.00% 11.47% 11.33% 11.02% 11.64% 11.30%
Total (Tier II) Capital to RWA 10.00% 12.44% 12.32% 12.02% 13.74% 13.90%
Tier I Leverage Ratio 5.00% 9.00% 8.58% 8.72% 8.98% 8.80%
Tangible Equity Ratio 8.21% 7.98% 7.60% 8.58% 8.07%
Bryn Mawr Bank Corporation
Quarterly Average Balances and Tax-Equivalent Interest Income and Expense and Tax-Equivalent Yields - (unaudited)
For The Three Months Ended
June 30, 2013 March 31, 2013 December 31, 2012 September 30, 2012 June 30, 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 $ 59,981 $ 41 0.27% $ 117,372 $ 69 0.24% $ 91,234 $ 41 0.18% $ 53,767 $ 34 0.25% $ 57,734 $ 30 0.21%
Investment securities - available for sale:
Taxable 287,287 846 1.18% 289,097 889 1.25% 286,889 897 1.24% 309,570 960 1.23% 307,371 1,067 1.40%
Tax-exempt 38,442 146 1.52% 34,150 125 1.48% 24,483 102 1.66% 18,481 82 1.77% 14,049 66 1.89%
Investment securities - available for sale 325,729 992 1.22% 323,247 1,014 1.27% 311,372 999 1.28% 328,051 1,042 1.26% 321,420 1,133 1.42%
Investment securities - trading 2,168 13 2.41% 1,695 16 3.83% 1,400 16 4.55% 1,343 5 1.48% 1,546 12 3.12%
Loans and leases * 1,428,069 18,277 5.13% 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%
Total interest-earning assets 1,815,947 19,323 4.27% 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%
Cash and due from banks 12,876 13,287 14,817 12,922 12,259
Less allowance for loan and lease losses (14,625) (14,693) (14,063) (13,337) (13,383)
Other assets 151,933 149,963 147,664 146,274 142,946
Total assets $ 1,966,131 $ 1,994,554 $ 1,898,297 $ 1,832,803 $ 1,816,541
Liabilities:
Savings, NOW and market rate deposits $ 969,654 $ 445 0.18% $ 975,464 $ 479 0.20% $ 890,629 $ 557 0.25% $ 849,966 $ 567 0.27% $ 805,953 $ 586 0.29%
Other wholesale deposits 31,124 25 0.32% 38,683 35 0.37% 38,932 38 0.39% 35,956 34 0.38% 47,463 43 0.36%
Wholesale deposits 11,610 19 0.66% 11,495 19 0.67% 10,689 20 0.74% 13,809 21 0.60% 22,280 24 0.43%
Time deposits 164,247 205 0.50% 190,937 242 0.51% 190,332 290 0.61% 178,711 316 0.70% 203,344 412 0.81%
Total interest-bearing deposits 1,176,635 694 0.24% 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%
Subordinated debentures -- -- --% -- -- --% 7,283 79 4.32% 21,114 271 5.11% 22,500 291 5.20%
Junior subordinated debentures -- -- --% -- -- --% -- -- --% -- -- --% -- -- --%
Short-term borrowings 13,358 4 0.12% 11,978 4 0.14% 13,243 3 0.09% 13,273 4 0.12% 13,149 5 0.15%
Long-term FHLB advances and other borrowings 150,468 596 1.59% 148,699 667 1.82% 159,559 798 1.99% 167,251 918 2.18% 163,908 924 2.27%
Total Borrowings 163,826 600 1.47% 160,677 671 1.69% 180,085 880 1.94% 201,638 1,193 2.35% 199,557 1,220 2.46%
Total interest-bearing liabilities 1,340,461 1,294 0.39% 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%
Noninterest-bearing deposits 391,387 386,881 359,008 330,179 323,539
Other liabilities 23,617 26,123 27,175 25,100 23,158
Total noninterest-bearing liabilities 415,004 413,004 386,183 355,279 346,697
Total liabilities 1,755,465 1,790,260 1,696,850 1,635,359 1,625,294
Shareholders' equity 210,666 204,294 201,447 197,444 191,247
Total liabilities and shareholders' equity $ 1,966,131 $ 1,994,554 $ 1,898,297 $ 1,832,803 $ 1,816,541
Interest income to earning assets 4.27% 4.16% 4.27% 4.28% 4.39%
Net interest spread 3.88% 3.73% 3.73% 3.62% 3.67%
Effect of noninterest-bearing sources 0.10% 0.12% 0.13% 0.16% 0.17%
Tax-equivalent net interest income/ margin on earning assets $ 18,029 3.98% $ 17,507 3.85% $ 16,992 3.86% $ 16,039 3.78% $ 15,984 3.84%
Tax-equivalent adjustment $ 106 0.02% $ 98 0.03% $ 96 0.02% $ 88 0.02% $ 81 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 Interest Income and Expense and Tax-Equivalent Yields
For The Six Months Ended June 30,
2013 2012
(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 $ 88,518 110 0.25% $ 48,144 52 0.22%
Investment securities available for sale: --
Taxable 288,187 1,734 1.21% 300,982 2,207 1.47%
Tax-exempt 36,308 269 1.49% 11,835 116 1.97%
Investment securities - available for sale 324,495 2,003 1.24% 312,817 2,323 1.49%
Investment securities - trading 1,933 15 1.56% 1,492 16 2.16%
Loans and leases * 1,415,944 36,147 5.15% 1,296,786 34,330 5.32%
Total interest earning assets 1,830,890 38,275 4.22% 1,659,239 36,721 4.45%
Cash and due from banks 13,080 11,899
Less allowance for loan and lease losses (14,659) (13,236)
Other assets 150,953 142,193
Total assets $1,980,264 $1,800,095
Liabilities:
Savings,NOW and market rate deposits $972,544 $ 923 0.19% $786,597 $ 1,145 0.29%
Other wholesale deposits 34,882 60 0.35% 56,290 96 0.34%
Wholesale deposits 11,553 38 0.66% 22,317 48 0.43%
Time deposits 177,518 447 0.51% 207,158 901 0.87%
Total interest-bearing deposits 1,196,497 1,468 0.25% 1,072,362 2,190 0.41%
Long-term FHLB advances and other borrowings 149,573 1,263 1.70% 164,943 1,890 2.30%
Short-term borrowings 12,672 8 0.13% 13,229 10 0.15%
Subordinated debt -- -- 22,500 582 5.20%
Junior subordinated debentures -- -- --% -- --
Total Borrowings 162,245 1,271 1.58% 200,672 2,482 2.49%
Total interest-bearing liabilities 1,358,742 2,739 0.41% 1,273,034 4,672 0.74%
Noninterest-bearing deposits 389,146 314,504
Other liabilities 24,878 24,208
Total noninterest-bearing liabilities 414,024 338,712
Total liabilities 1,772,766 1,611,746
Shareholders' equity 207,498 188,349
Total liabilities and shareholders' equity $ 1,980,264 $ 1,800,095
Interest income to earning assets 4.22% 4.45%
Net interest spread 3.81% 3.71%
Effect of noninterest-bearing sources 0.10% 0.17%
Tax-equivalent net interest income/ margin on earning assets $ 35,536 3.91% $ 32,049 3.88%
Tax-equivalent adjustment $ 204 0.02% $ 161 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