Exhibit 99.1
Bryn Mawr Bank Corporation
FOR RELEASE:
IMMEDIATELY
| | |
FOR MORE INFORMATION CONTACT: | | Ted Peters, Chairman |
| | 610-581-4800 or |
| | 610-316-2600 (evening) |
| | tpeters@bmtc.com |
| | J. Duncan Smith, CFO |
| | 610-526-2466 or |
| | 610-306-8489 (evening) |
| | jdsmith@bmtc.com |
Bryn Mawr Bank Corporation
Reports Increase in Second Quarter Diluted EPS and Net Income
Quarterly Dividend Increased 7.7%
BRYN MAWR, Pa. July 24, 2008 - Bryn Mawr Bank Corporation, (NASDAQ: BMTC), (the “Corporation”), parent of The Bryn Mawr Trust Company (the “Bank”), today announced financial results for the second quarter and six months ended June 30, 2008.
The Corporation reported second quarter 2008 diluted earnings per share of $0.37 and net income of $3.2 million compared to diluted earnings per share of $0.36 and net income of $3.1 million in the same period last year. Results in the quarter reflect an increase in net interest income from continued growth in the Bank’s loan and lease portfolio and stabilization of the net interest margin offset by a higher provision for loan and lease losses and a rise in non-interest expenses partially attributable to the Corporation’s new growth initiatives.
Ted Peters, Chairman and Chief Executive Officer, said, “We continue to experience strong growth in our loan and lease portfolio, which was up 15.4% from a year ago, and have seen our net interest margin stabilize during the first half of 2008. We have achieved
this growth while maintaining credit quality as the charge-off rate for the quarter was down from the first quarter, although up from the second quarter of last year when our leasing portfolio was significantly smaller. Performance of our loan and lease portfolio reflects historically high credit quality of our traditional borrowers and the effect of repositioning of our credit standards around our leasing portfolio due to economic conditions, which began in the third quarter of 2007. Though our fee-based business is growing slower, the acquisition of JNJ Holdings, LLC; Lau Associates, LLC; and Lau Professional Services, LLC (“Lau Associates”) in the third quarter should add incremental non-interest income going forward.”
Additionally, Mr. Peters stated, “I am also pleased to announce that your Board of Directors has declared a 7.7% increase in the quarterly dividend as an expression of their confidence in your Bank. Consistent with the growth strategy previously articulated, on July 15, 2007 we purchased Lau Associates, a nationally-recognized provider of family office services with approximately $603 million in assets under management and $156 million in assets under supervision as of 12/31/2007. These assets under management and supervision, if combined with the June 30, 2008 wealth assets under management, administration and brokerage of $2.2 billion, on a pro-forma basis, result in total wealth assets under management, administration, supervision and brokerage for the Corporation of approximately $3 billion. The acquisition should be immediately accretive. Additionally, we also secured Delaware trust powers and intend to begin those operations later this quarter. We will also be opening our Chester County regional banking office in the fourth quarter, which together with the renovations recently completed at our Wayne branch, will provide us with two essentially new retail banking locations in affluent communities.”
The net interest margin for the second quarter of 2008 was 3.97%, unchanged from 3.97% in the first quarter of 2008 and consistent with the Corporation’s objective to stabilize margins through active balance sheet management. The net interest margin was down from 4.49% in the second quarter of 2007. Return on average equity (ROE) and return on average assets (ROA) for the quarter ended June 30, 2008 were 13.65% and 1.24%, respectively. ROE was 14.66% and ROA was 1.49% for the same period last year. ROE was 12.83% and ROA was 1.23% for the first quarter of this year.
Total portfolio loans and leases at June 30, 2008 were $853.4 million, an increase of $113.7 million or 15.4% from $739.7 million at June 30, 2007. Growth in the loan portfolio compared to a year ago was broad based, led by a nearly 25% increase in home equity loans and lines, a nearly 20% increase in commercial and industrial loans, as well as increases in commercial and residential mortgages. This growth was centered mostly with existing customers and prospects in our immediate service area. The total loan and lease portfolio increased $36.6 million or 4.5% from March 31, 2008. Lease balances of $54.1 million at June 30, 2008 comprise 6.3% of total quarter end portfolio loans and leases, up from 3.9% of total portfolio loans and leases at June 30, 2007. At 6.3%, the proportion of leases to total loans and leases is unchanged from March 31, 2008.
Net charge-offs for the second quarter of 2008 were 0.23% of average loans, down from 0.31% in the first quarter of 2008. Total non-performing loans and leases at June 30, 2008 of $1.9 million were 0.20% of period end loans and leases, up from $1.1 million or 0.13% at March 31, 2008 and up from 0.09% at June 30, 2007. The provision for loan and lease losses in the current quarter was $781 thousand, up from $240 thousand in the second quarter of 2007, but down from $854 thousand in the first quarter of 2008. A majority of the changes in the provision, net charge-offs, and non-performing loans and leases are primarily attributable to the Company’s higher yielding lease portfolio. While lease charge-offs were higher than anticipated, they are substantially offset by their positive impact on the Company’s net interest income. The allowance for loan and lease losses of $8.7 million represents 1.02% of loans and leases compared to an allowance for loan and lease losses of $8.4 million or 1.02% of loans and leases at at March 31, 2008. At June 30, 2007 the allowance for loan and lease losses was $8.6 million or 1.16% of total portfolio loans and leases outstanding
During the second quarter of 2008, the Corporation increased its investment securities portfolio by $15.0 million to $111.9 million from $96.9 million at the end of the first quarter as part of an overall liquidity plan. The increase in the investment securities portfolio together with the strong growth in total portfolio loans and leases increased average quarterly earning assets by 23.7% to $950.5 million in the second quarter of 2008 from $768.2 million in the second quarter of 2007.
The second quarter of 2008 marked a second consecutive quarter of growth in interest bearing checking, money market and savings account balances, as second quarter average balances rose to $307.2 million from $304.7 million in the first quarter of 2008. Average second quarter 2008 non-interest bearing balances of $143.6 million are up from first quarter 2008 average balances of $142.5 million.
Wholesale funding, which is defined as wholesale deposits (primarily certificates of deposit) and borrowed funds, of $326.3 million at June 30, 2008 was up $92.1 million from March 31, 2008 balances of $234.3 million, primarily due to the increase in the loan and investment portfolios discussed earlier. Wholesale funding as a percentage of total funding was 34.9% at June 30, 2008 compared to 27.0% at March 31, 2008.
The tax equivalent net interest margin was 3.97% in the 2nd quarter of 2008, unchanged from 3.97% in the first quarter of 2008, but down from 4.49% in the second quarter of 2007. Earning asset yields declined 41 basis points from 6.46% in the first quarter of 2008 to 6.05% in the second quarter due to the addition of lower yielding securities (when compared to loans) and the impact of the last few Federal Reserve interest rate adjustments. At the same time, total funding costs declined 56 basis points from 3.14% in the first quarter of 2008 to 2.58% in the second quarter. The higher volume of interest earning assets compared to interest bearing liabilities accounts for the 15 basis point differential between the earning asset yield decline and the interest bearing liability yield decline. The decrease in the margin to 3.97% in the second quarter of 2008 from 4.49% in the same quarter of last year is primarily due to the $182 million or 23.7% increase in average interest earning assets that were primarily funded with higher cost wholesale funds.
Tax equivalent net interest income increased $692 thousand to $9.4 million in the second quarter of 2008 from $8.7 million in the first quarter of 2008 as well as from $8.6 million in the second quarter of 2007. The increase in tax equivalent net interest income was attributable to the significant increase in average interest earning assets and a stabilization of the Company’s net interest margin.
Non-interest income for the second quarter of 2008 was $5.2 million, an increase of $168 thousand over the $5.1 million in the second quarter of 2007, primarily due to an increase of early lease terminations in other income, an increase in the net gain on sale of loans, and an increase in service charges on deposits. Non-interest income in the second quarter of 2008 was down $398 thousand or 7.1%, compared to the first quarter of 2008 as the first quarter benefited from a net gain on sale of investments and interest rate floor income. Second quarter 2008 wealth management revenue was $3.3 million, essentially flat with the first quarter 2008 and down year-over-year reflecting lower stock market levels, and the loss of a significant institutional client due to a business acquisition in the fourth quarter of 2007. The Lau Associates acquisition that closed on July 15, 2008 should benefit wealth management revenues over the balance of the year.
Non-interest expense for the second quarter of 2008 was $9.0 million, an increase of $250 thousand or 2.9% over $8.8 million in the second quarter of 2007, partially due to the additional salaries and wages associated with the new growth initiatives. Second quarter non-interest expenses were marginally lower than in the first quarter of the year. The changes in the Corporation’s qualified and non-qualified retirement plans, which were effective March 31, 2008, reduced non-interest expenses in the second quarter compared to both the first quarter of this year as well as the second quarter a year ago.
SIX MONTH RESULTS
The Corporation reported six month 2008 net income of $6.1 million or $0.71 diluted earnings per share, down from net income of $7.1 million or $0.81 diluted earnings per share for the first six months of 2007. Net income for the first half of 2007, excluding a gain on the sale of real estate related to the first quarter 2007 sale of the Corporation’s Wynnewood Branch, was $6.2 million or $0.71 per diluted share.
Return on average equity (ROE) and return on average assets (ROA) for the six months ended June 30, 2008 were 13.25% and 1.24%, respectively, compared to 16.95% (14.87% excluding the real estate gain) and 1.76% (1.54% excluding the real estate gain), respectively, for the same period last year. The tax equivalent net interest margin for the first six months of 2008 was 3.97% compared to 4.57% in the same period last year.
Non-interest income in the first half of the year was $10.9 million, down approximately $348 thousand compared to first half of 2007. Non-interest income for the six month period ended June 30, 2008, excluding the $1.3 million 2007 gain on sale of real estate, was up $985 thousand from the first half of last year. Other operating income, BOLI income, the net gain on the sale of loans, and service charges on deposits were up in the first half of 2008. First half 2008 non-interest income also included income from the settlement of an interest rate floor contract and from the sale of investments, which the Corporation did not have in the first half of 2007.
For the six month period ended June 30, 2008, non-interest expense was $18.1 million, up $894 thousand or 5.2% compared to the six month period ended June 30, 2007. The increase in non-interest expense is primarily the result of the increase in salaries and wages associated with the new growth initiatives, partially offset by a reduction in professional fees and lower advertising expense.
CAPITAL AND DIVIDENDS
The Corporation and the Bank are “well capitalized” under applicable regulatory risk based capital requirements.
The quarterly dividend increase of $0.01 per share from $0.13 to $0.14 per share is payable September 1, 2008 to shareholders of record as of August 6, 2008.
EARNINGS CONFERENCE CALL
As previously announced, the Corporation will hold an earnings conference call at 5:00 p.m. EDT on Thursday, July 24, 2008. Interested parties may participate by calling 888-694-4641 at 4:55 p.m. EDT and referencing conference PIN # 53962580. A taped replay of the conference call will be available within two hours of the conclusion of the call and will remain available through Sunday, August 24, 2008. The number to call for the taped replay is 800-642-1687 and the conference PIN # is 53962580.
The conference call will be simultaneously broadcast live over the Internet through a web cast on the investor relations portion of the Bryn Mawr Bank Corporation’s website. To access the call, please visit the website athttp://www.bmtc.com/investor_01.cfm. An online archive of the web cast will be available within two hours 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.
NON-GAAP MEASURES
This release contains non-GAAP measures. A non-GAAP financial measure is a numerical measure of a company’s performance, financial position, or cash flows that either exclude or include amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles (GAAP). To supplement the Corporation’s financial statements presented in accordance with GAAP, we report certain key financial measurements without the impact of a material real estate transaction.
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, non-interest income, diluted earnings per share, ROE, and ROA determined in accordance with GAAP to exclude the effects of the real estate gain in the first quarter of 2007 (i.e. year-to-date).
The Corporation’s Management believes that the inclusion of these non-GAAP financial measures provides useful supplemental information essential to the proper understanding of the operating results of the Corporation’s core business. These measures should be considered in addition to results prepared in accordance with GAAP, and are not substitutes for, or superior to, GAAP results. The non-GAAP measures are provided to enhance investors’ overall understanding of our current financial performance. These non-GAAP measures have been reconciled to the nearest GAAP measure in the accompanying schedule.
FORWARD-LOOKING STATEMENTS
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, target, 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 the 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. The Corporation does not undertake to update forward-looking statements.
# # # #
Bryn Mawr Bank Corporation
Reconciliation of Non-GAAP Information
(dollars in thousands, except per share data)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Three Month Period Ended | |
| | | | |
| March 31, | | Net Income | | | Change | | | Non-interest income | | | Change | |
| | | 2008 | | 2007 | | | $ | | | % | | | 2008 | | | 2007 | | | $ | | | % | |
As reported (GAAP) | | $ | 2,898 | | $ | 3,976 | | | $ | (1,078 | ) | | (27.1 | )% | | $ | 5,630 | | | $ | 6,146 | | | $ | (516 | ) | | (8.4 | )% |
Non-GAAP adjustment1 | | | — | | | (866 | ) | | | 866 | | | 20.3 | % | | | — | | | | (1,333 | ) | | | 1,333 | | | 25.4 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Adjusted (Non-GAAP) | | $ | 2,898 | | $ | 3,110 | | | $ | (212 | ) | | (6.8 | )% | | $ | 5,630 | | | $ | 4,813 | | | $ | 817 | | | 17.0 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | |
| | | Diluted
Earnings Per Share | | | Change | | | ROE | | | ROA | |
| | | | | 2008 | | | 2007 | | | 2008 | | | 2007 | |
| | | 2008 | | 2007 | | | $ | | | % | | | | | | | | | | | | | |
As reported (GAAP) | | $ | 0.34 | | $ | 0.46 | | | $ | (0.12 | ) | | (26.1 | )% | | | 12.83 | % | | | 19.43 | % | | | 1.23 | % | | 2.03 | % |
Non-GAAP adjustment1 | | | — | | | (0.10 | ) | | | 0.10 | | | 20.5 | % | | | 0.00 | % | | | (4.21 | )% | | | 0.00 | % | | (0.44 | )% |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Adjusted (Non-GAAP) | | $ | 0.34 | | $ | 0.36 | | | $ | (0.02 | ) | | (5.6 | )% | | | 12.83 | % | | | 15.22 | % | | | 1.23 | % | | 1.59 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Six Month Period Ended | |
| | | | |
| June 30, | | Net Income | | | Change | | | Non-interest income | | | Change | |
| | | 2008 | | 2007 | | | $ | | | % | | | 2008 | | | 2007 | | | $ | | | % | |
As reported (GAAP) | | $ | 6,063 | | $ | 7,067 | | | $ | (1,004 | ) | | (14.2 | )% | | $ | 10,862 | | | $ | 11,210 | | | $ | (348 | ) | | (3.1 | )% |
Non-GAAP adjustment1 | | | — | | | (866 | ) | | | 866 | | | 11.9 | % | | $ | 0 | | | $ | (1,333 | ) | | | 1,333 | | | 13.1 | % |
Adjusted (Non-GAAP) | | $ | 6,063 | | $ | 6,201 | | | $ | (138 | ) | | (2.3 | )% | | $ | 10,862 | | | $ | 9,877 | | | $ | 985 | | | 10.0 | % |
| | | | |
| | | Diluted
earnings per share | | | Change | | | ROE | | | ROA | |
| | | | | 2008 | | | 2007 | | | 2008 | | | 2007 | |
| | | 2008 | | 2007 | | | $ | | | % | | | | | | | | | | | | | |
As reported (GAAP) | | $ | 0.71 | | $ | 0.81 | | | $ | (0.10 | ) | | (12.3 | )% | | | 13.25 | % | | | 16.95 | % | | | 1.24 | % | | 1.76 | % |
Non-GAAP adjustment1 | | $ | 0.00 | | $ | (0.10 | ) | | $ | 0.10 | | | 12.0 | % | | | 0.00 | % | | | (2.08 | )% | | | (0.00 | )% | | (0.22 | )% |
Adjusted (Non-GAAP) | | $ | 0.71 | | $ | 0.71 | | | $ | 0.00 | | | (0.0 | )% | | | 13.25 | % | | | 14.87 | % | | | 1.24 | % | | 1.54 | % |
| 1) | The Corporation uses this non-GAAP (Generally Accepted Accounting Principles) financial information in its analysis of the Corporation’s performance. This non-GAAP data should be considered in addition to results prepared in accordance with GAAP, and are not a substitute for, or superior to, GAAP results. The non-GAAP adjustment in the first quarter of 2007 represents the reduction of the effect of the after tax gain on sale of real estate of $866,000. The gain was calculated as the excess of the net sale proceeds over net book value, less income taxes. |
Bryn Mawr Bank Corporation
Consolidated Selected Financial Data (GAAP)
(Dollars in thousands, except per share data)
June 30, 2008
(unaudited)
| | | | | | | | | | | | | | | | | | | | |
| | | For The Three Months Ended | |
| | | June 30,
2008 | | | Mar 31,
2008 | | | Dec 31,
2007 | | | Sep 30,
2007 | | | Jun 30,
2007 | |
Interest income | | $ | 14,232 | | | $ | 14,062 | | | $ | 14,300 | | | $ | 14,147 | | | $ | 13,250 | |
Interest expense | | | 4,929 | | | | 5,454 | | | | 5,647 | | | | 5,448 | | | | 4,736 | |
| | | | | | | | | | | | | | | | | | | | |
Net interest income | | | 9,303 | | | | 8,608 | | | | 8,653 | | | | 8,699 | | | | 8,514 | |
Provision for loan and lease losses | | | 781 | | | | 854 | | | | 401 | | | | — | | | | 240 | |
| | | | | | | | | | | | | | | | | | | | |
Net interest income after provision for loan and lease losses | | | 8,522 | | | | 7,754 | | | | 8,252 | | | | 8,699 | | | | 8,274 | |
Fees for wealth management services | | | 3,291 | | | | 3,312 | | | | 3,482 | | | | 3,310 | | | | 3,423 | |
Loan servicing and late fees | | | 305 | | | | 310 | | | | 282 | | | | 276 | | | | 277 | |
Service charges on deposits | | | 429 | | | | 392 | | | | 385 | | | | 363 | | | | 356 | |
Net gain on sale of OREO | | | — | | | | — | | | | — | | | | — | | | | 110 | |
Net gain on sale of loans | | | 363 | | | | 332 | | | | 353 | | | | 358 | | | | 259 | |
Net gain on sale of investments | | | — | | | | 222 | | | | — | | | | — | | | | — | |
BOLI income | | | 117 | | | | 143 | | | | 165 | | | | 175 | | | | 84 | |
Interest rate floor income | | | — | | | | 268 | | | | 109 | | | | 46 | | | | — | |
Other operating income | | | 727 | | | | 651 | | | | 624 | | | | 643 | | | | 555 | |
| | | | | | | | | | | | | | | | | | | | |
Noninterest income | | | 5,232 | | | | 5,630 | | | | 5,400 | | | | 5,171 | | | | 5,064 | |
| | | | | |
Salaries and wages | | | 4,532 | | | | 4,479 | | | | 4,551 | | | | 4,536 | | | | 3,981 | |
Employee benefits | | | 947 | | | | 1,332 | | | | 1,214 | | | | 1,056 | | | | 1,057 | |
Occupancy and bank premises | | | 715 | | | | 750 | | | | 725 | | | | 739 | | | | 712 | |
Furniture fixtures and equipment | | | 565 | | | | 549 | | | | 536 | | | | 522 | | | | 513 | |
Advertising | | | 222 | | | | 272 | | | | 118 | | | | 237 | | | | 355 | |
Amortization of mortgage servicing rights | | | 89 | | | | 125 | | | | 91 | | | | 88 | | | | 77 | |
Professional fees | | | 364 | | | | 319 | | | | 372 | | | | 342 | | | | 470 | |
Other expenses | | | 1,569 | | | | 1,253 | | | | 1,384 | | | | 1,260 | | | | 1,588 | |
| | | | | | | | | | | | | | | | | | | | |
Noninterest expense | | | 9,003 | | | | 9,079 | | | | 8,991 | | | | 8,780 | | | | 8,753 | |
| | | | | |
Income before income taxes | | | 4,751 | | | | 4,305 | | | | 4,661 | | | | 5,090 | | | | 4,585 | |
Income tax expense | | | 1,586 | | | | 1,407 | | | | 1,583 | | | | 1,635 | | | | 1,494 | |
| | | | | | | | | | | | | | | | | | | | |
Net income | | $ | 3,165 | | | $ | 2,898 | | | $ | 3,078 | | | $ | 3,455 | | | $ | 3,091 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Per share data: | | | | | | | | | | | | | | | | | | | | |
Weighted average shares outstanding | | | 8,571,143 | | | | 8,534,467 | | | | 8,522,325 | | | | 8,520,843 | | | | 8,542,066 | |
Dilutive potential common shares | | | 31,836 | | | | 28,413 | | | | 64,609 | | | | 76,385 | | | | 112,040 | |
| | | | | | | | | | | | | | | | | | | | |
Adjusted weighted average dilutive shares | | | 8,602,979 | | | | 8,562,880 | | | | 8,586,934 | | | | 8,597,228 | | | | 8,654,106 | |
| | | | | | | | | | | | | | | | | | | | |
Basic earnings per common share | | $ | 0.37 | | | $ | 0.34 | | | $ | 0.36 | | | $ | 0.41 | | | $ | 0.36 | |
Diluted earnings per common share | | $ | 0.37 | | | $ | 0.34 | | | $ | 0.36 | | | $ | 0.40 | | | $ | 0.36 | |
Dividend declared per share | | $ | 0.13 | | | $ | 0.13 | | | $ | 0.13 | | | $ | 0.13 | | | $ | 0.12 | |
Effective tax rate | | | 33.4 | % | | | 32.7 | % | | | 34.0 | % | | | 32.1 | % | | | 32.6 | % |
Bryn Mawr Bank Corporation
Consolidated Selected Financial Data (GAAP)
(Dollars in thousands, except per share data)
June 30, 2008
(unaudited)
| | | | | | | | |
| | | For The Six Months Ended | |
| | | June 30,
2008 | | | June 30,
2007 | |
Interest income | | $ | 28,294 | | | $ | 25,771 | |
Interest expense | | | 10,383 | | | | 8,881 | |
| | | | | | | | |
| | |
Net interest income | | | 17,911 | | | | 16,890 | |
Provision for loan and lease losses | | | 1,635 | | | | 490 | |
| | | | | | | | |
Net interest income after provision for loan and lease losses | | | 16,276 | | | | 16,400 | |
| | |
Fees for wealth management services | | | 6,603 | | | | 6,710 | |
Loan servicing and late fees | | | 615 | | | | 557 | |
Service charges on deposits | | | 821 | | | | 716 | |
Gain on sale of real estate | | | — | | | | 1,333 | |
Net gain on sale of OREO | | | — | | | | 110 | |
Net gain on sale of loans | | | 695 | | | | 539 | |
Net gain on sale of investments | | | 222 | | | | — | |
BOLI income | | | 260 | | | | 84 | |
Interest rate floor income | | | 268 | | | | — | |
Other operating income | | | 1,378 | | | | 1,161 | |
| | | | | | | | |
Noninterest income | | | 10,862 | | | | 11,210 | |
| | |
Salaries and wages | | | 9,011 | | | | 8,029 | |
Employee benefits | | | 2,279 | | | | 2,278 | |
Occupancy and bank premises | | | 1,465 | | | | 1,398 | |
Furniture fixtures and equipment | | | 1,114 | | | | 1,020 | |
Advertising | | | 494 | | | | 671 | |
Amortization of mortgage servicing rights | | | 214 | | | | 169 | |
Professional fees | | | 683 | | | | 871 | |
Other expenses | | | 2,822 | | | | 2,752 | |
| | | | | | | | |
Noninterest expense | | | 18,082 | | | | 17,188 | |
| | |
Income before income taxes | | | 9,056 | | | | 10,422 | |
Income tax expense | | | 2,993 | | | | 3,355 | |
| | | | | | | | |
Net income | | $ | 6,063 | | | $ | 7,067 | |
| | | | | | | | |
| | |
Per share data: | | | | | | | | |
Weighted average shares outstanding | | | 8,552,805 | | | | 8,558,527 | |
Dilutive potential common shares | | | 30,125 | | | | 116,727 | |
| | | | | | | | |
Adjusted weighted average shares | | | 8,582,930 | | | | 8,675,254 | |
| | | | | | | | |
Basic earnings per common share | | $ | 0.71 | | | $ | 0.83 | |
Diluted earnings per common share | | $ | 0.71 | | | $ | 0.81 | |
Dividend declared per share | | $ | 0.26 | | | $ | 0.24 | |
Effective tax rate | | | 33.0 | % | | | 32.2 | % |
Bryn Mawr Bank Corporation
Consolidated Selected Financial Data (GAAP)
(Dollars in thousands, except per share data)
June 30, 2008
(unaudited)
| | | | | | | | | | | | | | | | | | | | |
| For the period end: | | 2008
2Q | | | 2008
1Q | | | 2007
4Q | | | 2007
3Q | | | 2007
2Q | |
Asset Quality Data | | | | | | | | | | | | | | | | | | | | |
Nonaccrual loans and leases | | $ | 1,697 | | | $ | 1,065 | | | $ | 747 | | | $ | 852 | | | $ | 654 | |
90 + days past due loans and leases | | | 8 | | | | 15 | | | | 1,263 | | | | 4 | | | | 41 | |
| | | | | | | | | | | | | | | | | | | | |
Nonperforming loans and leases | | | 1,705 | | | | 1,080 | | | | 2,010 | | | | 856 | | | | 695 | |
Other non-performing assets | | | 155 | | | | 64 | | | | — | | | | — | | | | — | |
Nonperforming assets | | $ | 1,860 | | | $ | 1,144 | | | $ | 2,010 | | | $ | 856 | | | $ | 695 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Allowance for loan and lease losses | | $ | 8,672 | | | $ | 8,358 | | | $ | 8,124 | | | $ | 8,292 | | | $ | 8,605 | |
Allowance for loan and lease losses / loans and lease | | | 1.02 | % | | | 1.02 | % | | | 1.01 | % | | | 1.07 | % | | | 1.16 | % |
Allowance for loan and lease losses / nonperforming loans and leases | | | 509 | % | | | 774 | % | | | 404 | % | | | 969 | % | | | 1,238 | % |
Nonperforming loans and leases / portfolio loans | | | 0.20 | % | | | 0.13 | % | | | 0.25 | % | | | 0.11 | % | | | 0.09 | % |
Nonperforming assets / assets | | | 0.18 | % | | | 0.11 | % | | | 0.20 | % | | | 0.10 | % | | | 0.08 | % |
Net loan and lease charge-offs | | | 467 | | | | 620 | | | | 569 | | | | 313 | | | | 1 | |
Net loan and lease charge-offs (annualized)/ average loans | | | 0.23 | % | | | 0.31 | % | | | 0.31 | % | | | 0.17 | % | | | 0.00 | % |
| | | | | |
| For the period and period end: | | 2008
2Q | | | 2008
1Q | | | 2007
4Q | | | 2007
3Q | | | 2007
2Q | |
Selected ratios (annualized): | | | | | | | | | | | | | | | | | | | | |
Return on average assets | | | 1.24 | % | | | 1.23 | % | | | 1.34 | % | | | 1.56 | % | | | 1.49 | % |
Return on average shareholders’ equity | | | 13.65 | % | | | 12.83 | % | | | 13.73 | % | | | 15.90 | % | | | 14.66 | % |
Yield on interest earning assets* | | | 6.05 | % | | | 6.46 | % | | | 6.77 | % | | | 6.95 | % | | | 6.97 | % |
Cost of interest bearing funds | | | 2.58 | % | | | 3.14 | % | | | 3.43 | % | | | 3.44 | % | | | 3.27 | % |
Net interest margin* | | | 3.97 | % | | | 3.97 | % | | | 4.11 | % | | | 4.29 | % | | | 4.49 | % |
Tier 1 leverage ratio | | | 9.70 | % | | | 10.23 | % | | | 10.42 | % | | | 10.55 | % | | | 10.95 | % |
Book value per share | | $ | 10.97 | | | $ | 10.89 | | | $ | 10.60 | | | $ | 10.43 | | | $ | 10.11 | |
Tangible book value per share | | $ | 10.97 | | | $ | 10.89 | | | $ | 10.60 | | | $ | 10.43 | | | $ | 10.11 | |
Period end shares outstanding | | | 8,571,277 | | | | 8,563,402 | | | | 8,526,084 | | | | 8,518,634 | | | | 8,532,580 | |
Selected data: | | | | | | | | | | | | | | | | | | | | |
Mortgage loans originated | | $ | 31,594 | | | $ | 28,780 | | | $ | 34,565 | | | $ | 37,285 | | | $ | 27,490 | |
Mortgage loans sold - servicing retained | | $ | 12,642 | | | $ | 14,294 | | | $ | 8,583 | | | $ | 7,588 | | | $ | 3,298 | |
Mortgage loans sold - servicing released | | $ | 10,149 | | | $ | 11,058 | | | $ | 12,852 | | | $ | 17,249 | | | $ | 19,521 | |
Mortgage loans serviced for others | | $ | 358,802 | | | $ | 357,734 | | | $ | 357,363 | | | $ | 364,684 | | | $ | 367,087 | |
| | | | | |
Brokerage assets (1) | | $ | 88,904 | | | $ | 87,759 | | | $ | 85,338 | | | $ | 95,357 | | | $ | 85,003 | |
Assets under management - other Institutions | | | — | | | | — | | | | — | | | | 423,301 | | | | 419,819 | |
Wealth assets under management / administration | | $ | 2,105,376 | | | $ | 2,053,207 | | | $ | 2,191,753 | | | $ | 2,251,951 | | | $ | 2,212,514 | |
| | | | | | | | | | | | | | | | | | | | |
Total Wealth assets under management / administration / brokerage | | $ | 2,194,280 | | | $ | 2,140,966 | | | $ | 2,277,091 | | | $ | 2,770,609 | | | $ | 2,717,336 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| | | 2008
Year-to-date | | | 2007
Year-to-date | |
Selected ratios (annualized): | | | | | | | | |
Return on average assets | | | 1.24 | % | | | 1.76 | % |
Return on average shareholders’ equity | | | 13.25 | % | | | 16.95 | % |
Yield on interest earning assets* | | | 6.25 | % | | | 6.95 | % |
Cost of interest bearing funds | | | 2.85 | % | | | 3.18 | % |
Net interest margin* | | | 3.97 | % | | | 4.57 | % |
| | |
Mortgage loans originated | | $ | 60,374 | | | $ | 55,761 | |
Mortgage loans sold - servicing retained | | $ | 26,936 | | | $ | 8,129 | |
Mortgage loans sold - servicing released | | $ | 21,207 | | | $ | 34,365 | |
| * | Yield on 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. |
Bryn Mawr Bank Corporation
Consolidated Selected Financial Data (GAAP)
(Dollars in thousands)
June 30, 2008
(unaudited)
| | | | | | | | | | | | | | | | | | | | |
Balance Sheet For the period ended: | | Jun 30,
2008 | | | Mar 31,
2008 | | | Dec 31,
2007 | | | Sep 30,
2007 | | | Jun 30,
2007 | |
Assets | | | | | | | | | | | | | | | | | | | | |
Interest bearing deposits with banks | | $ | 621 | | | $ | 513 | | | $ | 1,209 | | | $ | 1,002 | | | $ | 520 | |
Fed funds sold | | | — | | | | 10,500 | | | | 17,000 | | | | — | | | | 2,500 | |
Investment securities | | | 111,870 | | | | 96,852 | | | | 48,402 | | | | 43,720 | | | | 44,817 | |
Loans held for sale | | | 2,304 | | | | 4,496 | | | | 5,125 | | | | 5,757 | | | | 6,535 | |
Portfolio loans: | | | | | | | | | | | | | | | | | | | | |
Consumer | | | 8,574 | | | | 8,236 | | | | 7,990 | | | | 8,354 | | | | 7,827 | |
Commercial & industrial | | | 228,810 | | | | 221,125 | | | | 213,834 | | | | 209,516 | | | | 191,484 | |
Commercial mortgages | | | 241,597 | | | | 224,604 | | | | 224,510 | | | | 221,296 | | | | 224,696 | |
Construction | | | 66,861 | | | | 67,283 | | | | 66,901 | | | | 70,509 | | | | 70,209 | |
Residential mortgages | | | 114,924 | | | | 118,117 | | | | 121,313 | | | | 113,705 | | | | 105,441 | |
Home equity lines & loans | | | 138,445 | | | | 126,159 | | | | 123,293 | | | | 114,298 | | | | 111,079 | |
Leases | | | 54,144 | | | | 51,241 | | | | 45,084 | | | | 37,545 | | | | 28,924 | |
| | | | | | | | | | | | | | | | | | | | |
Total portfolio loans and leases | | | 853,355 | | | | 816,765 | | | | 802,925 | | | | 775,223 | | | | 739,660 | |
| | | | | |
Earning assets | | | 968,150 | | | | 929,126 | | | | 874,661 | | | | 825,702 | | | | 794,032 | |
| | | | | |
Cash and due from | | | 25,901 | | | | 23,043 | | | | 76,965 | | | | 21,330 | | | | 22,533 | |
Allowance for loan and lease losses | | | (8,672 | ) | | | (8,358 | ) | | | (8,124 | ) | | | (8,292 | ) | | | (8,605 | ) |
Other assets | | | 63,873 | | | | 60,303 | | | | 58,594 | | | | 56,125 | | | | 56,767 | |
| | | | | | | | | | | | | | | | | | | | |
Total assets | | $ | 1,049,252 | | | $ | 1,004,114 | | | $ | 1,002,096 | | | $ | 894,865 | | | $ | 864,727 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Liabilities and shareholders’ equity | | | | | | | | | | | | | | | | | | | | |
Interest-bearing checking | | $ | 139,392 | | | $ | 140,467 | | | $ | 137,486 | | | $ | 123,913 | | | $ | 126,988 | |
Money market | | | 124,431 | | | | 137,420 | | | | 114,310 | | | | 114,572 | | | | 101,613 | |
Savings | | | 38,157 | | | | 37,691 | | | | 36,181 | | | | 36,121 | | | | 38,009 | |
Wholesale deposits | | | 144,049 | | | | 123,775 | | | | 129,820 | | | | 114,565 | | | | 121,750 | |
Time deposits | | | 166,679 | | | | 179,136 | | | | 203,462 | | | | 194,199 | | | | 186,045 | |
| | | | | | | | | | | | | | | | | | | | |
Interest-bearing deposits | | | 612,708 | | | | 618,489 | | | | 621,259 | | | | 583,370 | | | | 574,405 | |
Non-interest bearing deposits | | | 141,114 | | | | 138,465 | | | | 228,269 | | | | 138,254 | | | | 154,238 | |
| | | | | | | | | | | | | | | | | | | | |
Total deposits | | | 753,822 | | | | 756,954 | | | | 849,528 | | | | 721,624 | | | | 728,643 | |
| | | | | |
Borrowed funds | | | 182,293 | | | | 110,500 | | | | 45,000 | | | | 68,500 | | | | 35,100 | |
Other liabilities | | | 19,102 | | | | 43,423 | | | | 17,217 | | | | 16,176 | | | | 15,018 | |
Shareholders’ equity | | | 94,035 | | | | 93,237 | | | | 90,351 | | | | 88,565 | | | | 85,966 | |
| | | | | | | | | | | | | | | | | | | | |
Total liabilities and shareholders’ equity | | $ | 1,049,252 | | | $ | 1,004,114 | | | $ | 1,002,096 | | | $ | 894,865 | | | $ | 864,727 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| Balance Sheet (average) | | 2008
2Q | | | 2008
1Q | | | 2007
4Q | | | 2007
3Q | | | 2007
2Q | |
Assets | | | | | | | | | | | | | | | | | | | | |
Interest bearing deposits with banks | | $ | 2,386 | | | $ | 5,507 | | | $ | 1,764 | | | $ | 3,172 | | | $ | 568 | |
Fed funds sold | | | 3,200 | | | | 7,318 | | | | 5,438 | | | | 4,884 | | | | 1,019 | |
Investment securities | | | 105,145 | | | | 56,951 | | | | 42,450 | | | | 44,074 | | | | 45,394 | |
Loans held for sale | | | 3,604 | | | | 4,175 | | | | 4,820 | | | | 5,465 | | | | 4,489 | |
Portfolio loans and leases | | | 836,180 | | | | 806,410 | | | | 787,059 | | | | 754,249 | | | | 716,734 | |
| | | | | | | | | | | | | | | | | | | | |
Earning assets | | | 950,515 | | | | 880,361 | | | | 841,531 | | | | 811,844 | | | | 768,204 | |
Cash and due from | | | 19,727 | | | | 22,306 | | | | 21,231 | | | | 22,306 | | | | 22,299 | |
Allowance for loan and lease losses | | | (8,451 | ) | | | (8,179 | ) | | | (8,347 | ) | | | (8,712 | ) | | | (8,537 | ) |
Other assets | | | 61,352 | | | | 54,908 | | | | 54,450 | | | | 54,231 | | | | 47,617 | |
| | | | | | | | | | | | | | | | | | | | |
Total assets | | $ | 1,023,143 | | | $ | 949,396 | | | $ | 908,865 | | | $ | 879,669 | | | $ | 829,583 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Liabilities and shareholders’ equity | | | | | | | | | | | | | | | | | | | | |
Interest-bearing checking | | $ | 138,539 | | | $ | 143,027 | | | $ | 130,161 | | | $ | 132,180 | | | $ | 131,893 | |
Money market | | | 130,222 | | | | 124,799 | | | | 120,298 | | | | 108,437 | | | | 104,812 | |
Savings | | | 38,472 | | | | 36,862 | | | | 35,952 | | | | 37,278 | | | | 39,072 | |
Wholesale deposits | | | 141,459 | | | | 131,505 | | | | 132,439 | | | | 120,222 | | | | 83,664 | |
Time deposits | | | 169,562 | | | | 195,413 | | | | 190,016 | | | | 192,999 | | | | 173,279 | |
| | | | | | | | | | | | | | | | | | | | |
Interest-bearing deposits | | | 618,254 | | | | 631,606 | | | | 608,866 | | | | 591,116 | | | | 532,720 | |
| | | | | |
Non-interest bearing deposits | | | 143,563 | | | | 142,532 | | | | 148,717 | | | | 148,858 | | | | 148,105 | |
| | | | | | | | | | | | | | | | | | | | |
Total deposits | | | 761,817 | | | | 774,138 | | | | 757,583 | | | | 739,974 | | | | 680,825 | |
| | | | | |
Borrowed funds | | | 150,567 | | | | 66,071 | | | | 44,592 | | | | 37,319 | | | | 47,720 | |
Other liabilities | | | 17,531 | | | | 18,361 | | | | 17,714 | | | | 16,205 | | | | 16,489 | |
Shareholders’ equity | | | 93,228 | | | | 90,826 | | | | 88,976 | | | | 86,171 | | | | 84,549 | |
| | | | | | | | | | | | | | | | | | | | |
Total liabilities and shareholders’ equity | | $ | 1,023,143 | | | $ | 949,396 | | | $ | 908,865 | | | $ | 879,669 | | | $ | 829,583 | |
| | | | | | | | | | | | | | | | | | | | |
Bryn Mawr Bank Corporation
Consolidated Selected Financial Data (GAAP)
(Dollars in thousands)
June 30, 2008
(unaudited)
| | | | | | | | |
| Balance Sheet (average) | | 2008
Year-to-date | | | 2007
Year-to-date | |
Assets | | | | | | | | |
Interest bearing deposits with banks | | $ | 3,947 | | | $ | 528 | |
Fed funds sold | | | 5,259 | | | | 1,804 | |
Investment securities | | | 81,048 | | | | 46,205 | |
Loans held for sale | | | 3,889 | | | | 4,675 | |
Portfolio loans and leases | | | 821,295 | | | | 700,335 | |
| | | | | | | | |
Earning assets | | | 915,438 | | | | 753,547 | |
Cash and due from | | | 21,017 | | | | 23,527 | |
Allowance for loan and lease losses | | | (8,315 | ) | | | (8,396 | ) |
Other assets | | | 58,121 | | | | 43,012 | |
| | | | | | | | |
Total assets | | $ | 986,261 | | | $ | 811,690 | |
| | | | | | | | |
| | |
Liabilities and shareholders’ equity | | | | | | | | |
Interest-bearing checking | | $ | 140,783 | | | $ | 132,569 | |
Money market | | | 127,511 | | | | 106,386 | |
Savings | | | 37,666 | | | | 39,604 | |
Wholesale deposits | | | 136,482 | | | | 57,763 | |
Time deposits | | | 182,488 | | | | 182,507 | |
| | | | | | | | |
Interest-bearing deposits | | | 624,930 | | | | 518,829 | |
| | |
Non-interest bearing deposits | | | 143,048 | | | | 148,759 | |
| | | | | | | | |
Total deposits | | | 767,978 | | | | 667,588 | |
| | |
Borrowed funds | | | 108,319 | | | | 44,062 | |
Other liabilities | | | 17,937 | | | | 16,274 | |
Shareholders’ equity | | | 92,027 | | | | 83,766 | |
| | | | | | | | |
Total liabilities and shareholders’ equity | | $ | 986,261 | | | $ | 811,690 | |
| | | | | | | | |
Quarterly Average Balances and Tax Equivalent Income and Expense and Tax Equivalent Yields
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 2nd Quarter 2008 | | | 1st Quarter 2008 | | | 4th Quarter 2007 | | | 3rd Quarter 2007 | | | 2nd Quarter 2007 | |
(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 | | $ | 2,386 | | | $ | 13 | | 2.19 | % | | $ | 5,507 | | | $ | 42 | | 3.07 | % | | $ | 1,764 | | | $ | 21 | | 4.72 | % | | $ | 3,172 | | | $ | 42 | | 5.25 | % | | $ | 568 | | | $ | 7 | | 4.94 | % |
Federal funds sold | | | 3,200 | | | | 18 | | 2.26 | % | | | 7,318 | | | | 60 | | 3.30 | % | | | 5,438 | | | | 61 | | 4.45 | % | | | 4,884 | | | | 65 | | 5.28 | % | | | 1,019 | | | | 14 | | 5.51 | % |
Investment securities available for sale: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Taxable | | | 97,360 | | | | 1,120 | | 4.63 | % | | | 49,251 | | | | 617 | | 5.04 | % | | | 37,325 | | | | 474 | | 5.04 | % | | | 39,090 | | | | 500 | | 5.07 | % | | | 40,393 | | | | 514 | | 5.10 | % |
Tax-exempt | | | 7,785 | | | | 94 | | 4.86 | % | | | 7,700 | | | | 93 | | 4.86 | % | | | 5,125 | | | | 58 | | 4.49 | % | | | 4,984 | | | | 57 | | 4.54 | % | | | 5,001 | | | | 59 | | 4.73 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investment securities available for sale | | | 105,145 | | | | 1,214 | | 4.64 | % | | | 56,951 | | | | 710 | | 5.01 | % | | | 42,450 | | | | 532 | | 4.97 | % | | | 44,074 | | | | 557 | | 5.01 | % | | | 45,394 | | | | 573 | | 5.06 | % |
Loans and leases * | | | 839,784 | | | | 13,055 | | 6.25 | % | | | 810,585 | | | | 13,321 | | 6.61 | % | | | 791,879 | | | | 13,755 | | 6.89 | % | | | 759,714 | | | | 13,558 | | 7.08 | % | | | 721,223 | | | | 12,747 | | 7.09 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total interest earning assets | | | 950,515 | | | | 14,300 | | 6.05 | % | | | 880,361 | | | | 14,133 | | 6.46 | % | | | 841,531 | | | | 14,369 | | 6.77 | % | | | 811,844 | | | | 14,222 | | 6.95 | % | | | 768,204 | | | | 13,341 | | 6.97 | % |
Cash and due from banks | | | 19,727 | | | | | | | | | | 22,306 | | | | | | | | | | 21,231 | | | | | | | | | | 22,306 | | | | | | | | | | 22,299 | | | | | | | |
Less allowance for loan and lease losses | | | (8,451 | ) | | | | | | | | | (8,179 | ) | | | | | | | | | (8,347 | ) | | | | | | | | | (8,712 | ) | | | | | | | | | (8,537 | ) | | | | | | |
Other assets | | | 61,352 | | | | | | | | | | 54,908 | | | | | | | | | | 54,450 | | | | | | | | | | 54,231 | | | | | | | | | | 47,617 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total assets | | $ | 1,023,143 | | | | | | | | | $ | 949,396 | | | | | | | | | $ | 908,865 | | | | | | | | | $ | 879,669 | | | | | | | | | $ | 829,583 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Savings, NOW and market rate deposits | | $ | 307,233 | | | $ | 794 | | 1.04 | % | | $ | 304,688 | | | $ | 1,057 | | 1.40 | % | | $ | 286,411 | | | $ | 1,154 | | 1.60 | % | | $ | 277,895 | | | $ | 1,041 | | 1.49 | % | | $ | 275,777 | | | $ | 977 | | 1.42 | % |
Wholesale deposits | | | 141,459 | | | | 1,591 | | 4.52 | % | | | 131,505 | | | | 1,646 | | 5.03 | % | | | 132,439 | | | | 1,741 | | 5.22 | % | | | 120,222 | | | | 1,630 | | 5.38 | % | | | 83,664 | | | | 1,132 | | 5.43 | % |
Time deposits | | | 169,562 | | | | 1,353 | | 3.21 | % | | | 195,413 | | | | 2,115 | | 4.35 | % | | | 190,016 | | | | 2,213 | | 4.62 | % | | | 192,999 | | | | 2,282 | | 4.69 | % | | | 173,279 | | | | 1,982 | | 4.59 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total interest-bearing deposits | | | 618,254 | | | | 3,738 | | 2.43 | % | | | 631,606 | | | | 4,818 | | 3.07 | % | | | 608,866 | | | | 5,108 | | 3.33 | % | | | 591,116 | | | | 4,953 | | 3.32 | % | | | 532,720 | | | | 4,091 | | 3.08 | % |
Borrowed funds | | | 150,567 | | | | 1,191 | | 3.18 | % | | | 66,071 | | | | 636 | | 3.87 | % | | | 44,592 | | | | 539 | | 4.80 | % | | | 37,319 | | | | 495 | | 5.26 | % | | | 47,720 | | | | 645 | | 5.42 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total interest-bearing liabilities | | | 768,821 | | | | 4,929 | | 2.58 | % | | | 697,677 | | | | 5,454 | | 3.14 | % | | | 653,458 | | | | 5,647 | | 3.43 | % | | | 628,435 | | | | 5,448 | | 3.44 | % | | | 580,440 | | | | 4,736 | | 3.27 | % |
Noninterest-bearing deposits | | | 143,563 | | | | | | | | | | 142,532 | | | | | | | | | | 148,717 | | | | | | | | | | 148,858 | | | | | | | | | | 148,105 | | | | | | | |
Other liabilities | | | 17,531 | | | | | | | | | | 18,361 | | | | | | | | | | 17,714 | | | | | | | | | | 16,205 | | | | | | | | | | 16,489 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total noninterest- bearing liabilities | | | 161,094 | | | | | | | | | | 160,893 | | | | | | | | | | 166,431 | | | | | | | | | | 165,063 | | | | | | | | | | 164,594 | | | | | | | |
Total liabilities | | | 929,915 | | | | | | | | | | 858,570 | | | | | | | | | | 819,889 | | | | | | | | | | 793,498 | | | | | | | | | | 745,034 | | | | | | | |
Shareholders’ equity | | | 93,228 | | | | | | | | | | 90,826 | | | | | | | | | | 88,976 | | | | | | | | | | 86,171 | | | | | | | | | | 84,549 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total liabilities and shareholders’ equity | | $ | 1,023,143 | | | | | | | | | $ | 949,396 | | | | | | | | | $ | 908,865 | | | | | | | | | $ | 879,669 | | | | | | | | | $ | 829,583 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest income to earning assets | | | | | | | | | 6.05 | % | | | | | | | | | 6.46 | % | | | | | | | | | 6.77 | % | | | | | | | | | 6.95 | % | | | | | | | | | 6.97 | % |
Net interest spread | | | | | | | | | 3.47 | | | | | | | | | | 3.32 | | | | | | | | | | 3.34 | | | | | | | | | | 3.51 | | | | | | | | | | 3.70 | |
Effect of noninterest-bearing sources | | | | | | | | | 0.50 | | | | | | | | | | 0.65 | | | | | | | | | | 0.77 | | | | | | | | | | 0.78 | | | | | | | | | | 0.79 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net interest income/ margin on earning assets | | | | | | $ | 9,371 | | 3.97 | % | | | | | | $ | 8,679 | | 3.97 | % | | | | | | $ | 8,722 | | 4.11 | % | | | | | | $ | 8,774 | | 4.29 | % | | | | | | $ | 8,605 | | 4.49 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Tax equivalent adjustment | | | | | | $ | 68 | | 0.03 | % | | | | | | $ | 71 | | 0.03 | % | | | | | | $ | 69 | | 0.03 | % | | | | | | $ | 74 | | 0.04 | % | | | | | | $ | 91 | | 0.05 | % |
| * | 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. |
Average Balances and Tax Equivalent Income and Expense and Tax Equivalent Yields
For the Six months ended June 30,
| | | | | | | | | | | | | | | | | | | | |
| | | 2008 | | | 2007 | |
| (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 | | | 3,947 | | | | 55 | | 2.80 | % | | | 528 | | | | 14 | | 5.35 | % |
Federal funds sold | | | 5,259 | | | | 78 | | 2.98 | % | | | 1,804 | | | | 48 | | 5.37 | % |
Investment securities available for sale: | | | | | | | | | | | | | | | | | | | | |
Taxable | | | 73,305 | | | | 1,738 | | 4.77 | % | | | 41,202 | | | | 1,043 | | 5.10 | % |
Tax-exempt | | | 7,743 | | | | 186 | | 4.83 | % | | | 5,003 | | | | 117 | | 4.72 | % |
| | | | | | | | | | | | | | | | | | | | |
Investment securities available for sale | | | 81,048 | | | | 1,924 | | 4.77 | % | | | 46,205 | | | | 1,160 | | 5.06 | % |
| | | | | | |
Loans and leases * | | | 825,184 | | | | 26,376 | | 6.43 | % | | | 705,010 | | | | 24,740 | | 7.08 | % |
| | | | | | | | | | | | | | | | | | | | |
Total interest earning assets | | | 915,438 | | | | 28,433 | | 6.25 | % | | | 753,547 | | | | 25,962 | | 6.95 | % |
Cash and due from banks | | | 21,017 | | | | | | | | | $ | 23,527 | | | | | | | |
Less allowance for loan and lease losses | | | (8,315 | ) | | | | | | | | | (8,396 | ) | | | | | | |
Other assets | | | 58,121 | | | | | | | | | | 42,855 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Total assets | | $ | 986,261 | | | | | | | | | $ | 811,533 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Liabilities: | | | | | | | | | | | | | | | | | | | | |
Savings, NOW and market rate deposits | | $ | 305,960 | | | $ | 1,850 | | 1.22 | % | | $ | 278,559 | | | $ | 1,974 | | 1.43 | % |
Wholesale deposits | | | 136,482 | | | | 3,236 | | 4.77 | % | | | 57,763 | | | | 1,554 | | 5.43 | % |
Time deposits | | | 182,488 | | | | 3,469 | | 3.82 | % | | | 182,507 | | | | 4,166 | | 4.60 | % |
| | | | | | | | | | | | | | | | | | | | |
Total interest-bearing deposits | | | 624,930 | | | | 8,555 | | 2.75 | % | | | 518,829 | | | | 7,694 | | 2.99 | % |
| | | | | | |
Short term borrowings | | | 108,319 | | | | 1,828 | | 3.39 | % | | | 44,062 | | | | 1,187 | | 5.43 | |
| | | | | | | | | | | | | | | | | | | | |
Total interest-bearing liabilities | | | 733,249 | | | | 10,383 | | 2.85 | % | | | 562,891 | | | | 8,881 | | 3.18 | % |
Noninterest-bearing deposits | | | 143,048 | | | | | | | | | | 148,759 | | | | | | | |
Other liabilities | | | 17,937 | | | | | | | | | | 15,826 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Total noninterest-bearing liabilities | | | 160,985 | | | | | | | | | | 164,585 | | | | | | | |
Total liabilities | | | 894,234 | | | | | | | | | | 727,476 | | | | | | | |
| | | | | | |
Shareholders’ equity | | | 92,027 | | | | | | | | | | 84,057 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Total liabilities and shareholders’ equity | | $ | 986,261 | | | | | | | | | $ | 811,533 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Interest income to earning assets | | | | | | | | | 6.25 | % | | | | | | | | | 6.95 | % |
Net interest spread | | | | | | | | | 3.40 | | | | | | | | | | 3.77 | |
Effect of noninterest-bearing sources | | | | | | | | | 0.57 | | | | | | | | | | 0.80 | |
| | | | | | | | | | | | | | | | | | | | |
Net interest income/ margin on earning assets | | | | | | $ | 18,050 | | 3.97 | % | | | | | | $ | 17,081 | | 4.57 | % |
| | | | | | | | | | | | | | | | | | | | |
Tax equivalent adjustment | | | | | | $ | 139 | | 0.04 | % | | | | | | $ | 191 | | 0.05 | % |
| * | 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. |
