Exhibit 99.1
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| FOR RELEASE: | | IMMEDIATELY |
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| FOR MORE INFORMATION CONTACT: | | Ted Peters, Chairman |
| | | 610-581-4800 or |
| | | 610-525-2531 (evening) |
| | | J. Duncan Smith, CFO |
| | | 610-526-2446 or |
| | | 610-306-8489 (evening) |
Bryn Mawr Bank Corporation Announces First Quarter 2005 Earnings of $2.8 million
BRYN MAWR, Pa. April 19, 2005- Bryn Mawr Bank Corporation, (NASDAQ): BMTC), (the “Corporation”), parent of The Bryn Mawr Trust Company (the “Bank”), announced first quarter 2005 net income of $2.802 million compared with last year’s first quarter of $3.020 million. Diluted earnings per share in the first quarter of 2005 were $0.32 compared with $0.34 in the same period last year. In the first quarter of 2004, the Bank sold mortgage servicing rights (“MSR’s”) that contributed $526 thousand to after tax income and increased diluted earnings per share $0.06. There were no sales of MSR’s in the first quarter of 2005. Net income and diluted earnings per share for the first quarter of 2004 excluding the after tax impact of the MSR’s sale would have been $2.494 million and $0.28 per share respectively. Excluding the impact of the MSR’s sale, 2005 first quarter net income increased $308 thousand or 12.3% and diluted earnings per share increased $0.04 or 14.3% over the same period last year. (See accompanying reconcilement of GAAP net income and diluted earnings per share to net income and diluted earnings per share that exclude the MSR’s sale).
According to Corporation Chairman Ted Peters, “Net interest income increased $999 thousand or 15.7% to $7.368 million in the first quarter of 2005 compared to the same quarter in 2004. This demonstrates the positive effect of the recent increases in short-term interest rates. The net interest margin for the first quarter of 2005 increased 32 basis points to 4.78% compared to 4.46% in the same period last year.”
Mr. Peters continued, “Total loans increased $31.2 million or 5.9% over the past 12 months and the Bank’s asset quality remains strong as non-performing loans as a percent of total loans was 0.25% at March 31, 2005. Loan growth was primarily in commercial mortgages and small business loans. In 2005, deposit growth is expected as a result of the introduction of the Free Checking program and the opening of the Bank’s newest branch in Exton, PA.”
Other income for the first quarter of 2005 was $4.414 million compared with $6.574 million in the same period last year. Other income was negatively impacted by the slow down in residential mortgage activity, especially in the refinance market. Residential mortgage originations declined 49.7% to $39.0 million in the first quarter of 2005 from $77.4 million in the first quarter of 2004, while residential mortgage loans sold declined 34.1% over the same time period. Fees for trust services for the first quarter of 2005 increased $56 thousand or 2.2% from the same period last year.
Total other expenses for the first quarter of 2005 decreased $737 thousand or 9.1% to $7.384 million when compared to the same period last year with $265 thousand of the decrease related to the sale of the MSR’s. The balance of the decrease was due primarily to an overall reduction in salary expenses. These declines were partially offset by increased occupancy expenses resulting from the opening of the Newtown Square, PA branch in 2004.
In other business, the Corporation’s Board of Directors approved a regular quarterly dividend of 10¢ per share, payable June 1, 2005, to shareholders of record as of April 29, 2005.
This release contains certain forward-looking statements. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words believe, expect, anticipate, intend, plan, estimate or words of similar meaning. Forward-looking statements, by their nature, are subject to risks and uncertainties. A number of factors, many of which are beyond Bryn Mawr Bank Corporation’s control could cause actual conditions, events or results to differ significantly from those described in the forward looking statements. Forward-looking statements speak only as of the date they are made. Bryn Mawr Bank Corporation does not undertake to update forward-looking statements.
This release contains financial information determined by methods other than in accordance with generally accepted accounting principles (“GAAP”). The Corporation’s Management uses these non-GAAP measures in its analysis of the Corporation’s performance. These non-GAAP measures consist of adjusting net income determined in accordance with GAAP to exclude the effects of the sale of MSR’s in the first quarter of 2004. Management believes that the presentation excluding the impact of the sale of MSR’s in the first quarter of 2005 provides useful supplementation information essential to the proper understanding of the operating results of the Corporation’s core business. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures, which may be presented by other companies.
The accompanying financial statements are an integral part of this press release.
# # # #
Reconcilation of Non-GAAP Information
Three Month Period Ended March 31, 2005
Net Income
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| | | 2005
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As reported | | $ | 2,802,000 | | $ | 3,020,000 | | | $ | (218,000 | ) | | (7.2 | )% |
After tax effect of MSR’s sale1 | | | — | | | (526,000 | ) | | | 526,000 | | | — | |
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Adjusted for sale | | $ | 2,802,000 | | $ | 2,494,000 | | | $ | 308,000 | | | 12.3 | % |
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| Diluted Earnings Per Share | | | | | | | | | | | | | | |
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| | | 2005
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As reported | | $ | 0.32 | | $ | 0.34 | | | $ | (0.02 | ) | | (5.9 | )% |
After tax effect of MSR’s sale1 | | | — | | | (0.06 | ) | | | 0.06 | | | — | |
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Adjusted for sale | | $ | 0.32 | | $ | 0.28 | | | $ | 0.04 | | | 14.3 | % |
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| 1 | MSR’s gain was calculated as follows: |
Revenues of $1,073,000, less direct expenses of $265,000 and allocated income taxes of $282,000, netting to $526,000.
Bryn Mawr Bank Corporation
Bryn Mawr, Pennsylvania
Consolidated Balance Sheets
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| | | ($000 omitted) (unaudited)
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March 31
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| Assets | | | | | | | | | | | | | | | |
Cash and due from banks | | $ | 31,536 | | | $ | 32,302 | | | $ | (766 | ) | | -2 | % |
Interest-bearing deposits with other banks | | | 598 | | | | 578 | | | | 20 | | | 3 | % |
Federal funds sold | | | 7,041 | | | | 23,400 | | | | (16,359 | ) | | -70 | % |
Investment securities | | | 35,156 | | | | 28,337 | | | | 6,819 | | | 24 | % |
Loans held to maturity | | | 558,534 | | | | 521,879 | | | | 36,655 | | | 7 | % |
Loans held for sale, at fair market value | | | 4,287 | | | | 9,791 | | | | (5,504 | ) | | -56 | % |
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Loans | | | 562,821 | | | | 531,670 | | | | 31,151 | | | 6 | % |
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Less: Allowance for loan loss | | | (7,125 | ) | | | (6,852 | ) | | | (273 | ) | | 4 | % |
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Net loans | | | 555,696 | | | | 524,818 | | | | 30,878 | | | 6 | % |
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Premises and equipment, net | | | 14,442 | | | | 14,074 | | | | 368 | | | 3 | % |
Accrued interest receivable | | | 2,884 | | | | 2,338 | | | | 546 | | | 23 | % |
Mortgage servicing rights | | | 3,114 | | | | 3,216 | | | | (102 | ) | | -3 | % |
Other assets | | | 13,084 | | | | 13,731 | | | | (647 | ) | | -5 | % |
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Total Assets | | $ | 663,551 | | | $ | 642,794 | | | $ | 20,757 | | | 3 | % |
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| Liabilities and shareholders’ equity | | | | | | | | | | | | | | | |
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Demand deposits | | $ | 136,276 | | | $ | 150,936 | | | $ | (14,660 | ) | | -10 | % |
Savings and time deposits | | | 446,908 | | | | 411,548 | | | | 35,360 | | | 9 | % |
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Total Deposits | | | 583,184 | | | | 562,484 | | | | 20,700 | | | 4 | % |
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Other liabilities | | | 8,457 | | | | 12,298 | | | | (3,841 | ) | | -31 | % |
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Shareholders’ equity | | | | | | | | | | | | | | | |
Common stock | | | 11,190 | | | | 11,150 | | | | 40 | | | 0 | % |
Surplus | | | 7,323 | | | | 6,701 | | | | 622 | | | 9 | % |
Accumulated other | | | | | | | | | | | | | | | |
Comprehensive (loss) income, net of deferred income taxes | | | (518 | ) | | | (67 | ) | | | (451 | ) | | 673 | % |
Retained earnings | | | 77,121 | | | | 71,435 | | | | 5,686 | | | 8 | % |
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| | | | 95,116 | | | | 89,219 | | | | 5,897 | | | 7 | % |
Less common stock in treasury, at cost | | | (23,206 | ) | | | (21,207 | ) | | | (1,999 | ) | | 9 | % |
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Total shareholders’ equity | | | 71,910 | | | | 68,012 | | | | 3,898 | | | 6 | % |
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Total liabilities and shareholders’ equity | | $ | 663,551 | | | $ | 642,794 | | | $ | 20,757 | | | 3 | % |
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Outstanding standby letters of credit | | $ | 9,483 | | | $ | 8,646 | | | $ | 837 | | | 10 | % |
Consolidated Statements of Income
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| | | Quarter ended March 31 (unaudited) ($000 omitted*)
| | Change
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| | | 2005
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| Interest income: | | | | | | | | | | | | | |
Interest and fees on loans | | $ | 8,354 | | $ | 7,178 | | $ | 1,176 | | | 16 | % |
Interest on federal funds sold | | | 25 | | | 18 | | | 7 | | | 39 | % |
Interest on investment securities | | | 284 | | | 247 | | | 37 | | | 15 | % |
Dividend income | | | 8 | | | 9 | | | (1 | ) | | -11 | % |
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Total interest income | | | 8,671 | | | 7,452 | | | 1,219 | | | 16 | % |
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Interest expense | | | 1,303 | | | 1,083 | | | 220 | | | 20 | % |
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Net interest income | | | 7,368 | | | 6,369 | | | 999 | | | 16 | % |
Loan loss provision | | | 187 | | | 187 | | | 0 | | | 0 | % |
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Net interest income after loan loss provision | | | 7,181 | | | 6,182 | | | 999 | | | 16 | % |
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| Other income: | | | | | | | | | | | | | |
Fees for trust services | | | 2,610 | | | 2,554 | | | 56 | | | 2 | % |
Loan Servicing and late fees | | | 339 | | | 514 | | | (175 | ) | | -34 | % |
Other commissions and fees | | | 54 | | | 67 | | | (13 | ) | | -19 | % |
Service charges on deposits | | | 395 | | | 476 | | | (81 | ) | | -17 | % |
Gain on sale of loans | | | 458 | | | 1,372 | | | (914 | ) | | -67 | % |
Gain on sale of MSR’s | | | — | | | 1,073 | | | (1,073 | ) | | -100 | % |
Other operating income | | | 558 | | | 518 | | | 40 | | | 8 | % |
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Total other income | | | 4,414 | | | 6,574 | | | (2,160 | ) | | -33 | % |
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| Other expenses: | | | | | | | | | | | | | |
Salaries and employee benefits | | | 4,648 | | | 5,123 | | | (475 | ) | | -9 | % |
Occupancy expense | | | 1,016 | | | 941 | | | 75 | | | 8 | % |
Other operating expenses | | | 1,720 | | | 2,057 | | | (337 | ) | | -16 | % |
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Total other expenses | | | 7,384 | | | 8,121 | | | (737 | ) | | -9 | % |
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Income before income taxes | | | 4,211 | | | 4,635 | | | (424 | ) | | -9 | % |
Applicable income taxes | | | 1,409 | | | 1,615 | | | (206 | ) | | -13 | % |
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Net income | | | 2,802 | | | 3,020 | | | (218 | ) | | -7 | % |
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Earnings per common share | | $ | 0.33 | | $ | 0.35 | | $ | (0.02 | ) | | -6 | % |
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Diluted earnings per common share | | $ | 0.32 | | $ | 0.34 | | $ | (0.02 | ) | | -6 | % |
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Dividends declared per share | | $ | 0.10 | | $ | 0.10 | | $ | 0.000 | | | 0 | % |
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Weighted-average shares outstanding | | | 8,591,622 | | | 8,643,205 | | | (51,583 | ) | | | |
Dilutive potential common shares | | | 162,643 | | | 200,671 | | | (38,028 | ) | | | |
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Adjusted weighted-average shares | | | 8,754,265 | | | 8,843,876 | | | (89,611 | ) | | | |
| * | Except for share and per share data |
