Exhibit 99.1
Bryn Mawr Bank Corporation
| | | | |
| FOR RELEASE: IMMEDIATELY | | | | Ted Peters, Chairman |
| FOR MORE INFORMATION CONTACT: | | | | 610-581-4800 |
| | | | J. Duncan Smith, CFO |
| | | | 610-526-2466 |
Bryn Mawr Bank Corporation Reports Second Quarter Net Income Increase of 9.5% Despite $914 Thousand in Merger Costs, Completes Davidson Trust Acquisition
BRYN MAWR, Pa., July 26, 2012 - Bryn Mawr Bank Corporation (NASDAQ: BMTC), (the “Corporation”), parent of The Bryn Mawr Trust Company (the “Bank”), today announced net income for the three months ended June 30, 2012 of $5.3 million, an increase of $456 thousand, or 9.5%, from net income of $4.8 million for the same period in 2011. Diluted earnings per share of $0.40 for the three months ended June 30, 2012 was an increase of $0.02 per share as compared to diluted earnings per share of $0.38 for the same period in 2011. Included in the net income for the three months ended June 30, 2012 are tax-effected due diligence and merger-related expenses of $599 thousand, as compared to tax-effected due diligence and merger-related expenses of $117 thousand for the same period in 2011, an increase of $482 thousand.
On July 26, 2012, the Board of Directors of the Corporation declared a quarterly dividend of $0.16 per share. The dividend is payable September 1, 2012, to shareholders of record as of August 7, 2012.
On May 15, 2012, the Corporation announced the completion of its acquisition of Davidson Trust Company (“DTC”). The acquisition increased the Wealth Management Division’s assets under management by approximately $1.0 billion.
Ted Peters, Chairman and Chief Executive Officer commented, “We are pleased with our strong performance for the first half of the year and confident that our recent acquisition of the Davidson Trust Company will have a positive effect on our bottom line.” Frank Leto, Executive Vice President and head of the Wealth Management Division added, “The acquisition has expanded our talented and experienced Wealth staff, helping secure our position as a premier wealth services provider in the area.”
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As announced, on May 2, 2012, the Corporation entered into a definitive agreement to acquire certain consumer and business deposit and loan accounts, as well as a branch location in Wilmington, Delaware, from the First Bank of Delaware. The purchase is expected to increase both loans and deposits by approximately $100 million each and is expected to close in the fourth quarter of 2012.
Mr. Peters continued, “Like all banks, the current low interest rate environment continues to exert pressure on our net interest margin as we strive to competitively price our loan and deposit products. However, we anticipate considerable opportunities from the First Bank of Delaware transaction as we expect to add $100 million in earning assets and to leverage our already established wealth management presence within Delaware.” Joe Keefer, Executive Vice President and Chief Lending Officer added, “We look forward to working with our new customers in Delaware and welcoming them to Bryn Mawr Trust.”
SIGNIFICANT ITEMS OF NOTE
| | • | | The financial results for the three months ended June 30, 2012 as compared to the same period in 2011 reflect both the impact of the May 27, 2011 acquisition of the Private Wealth Management Group of the Hershey Trust Company (“PWMG”) and, to a lesser extent, the May 15, 2012 acquisition of DTC. |
| | • | | Net income for the three months ended June 30, 2012 increased $456 thousand, or 9.5%, as compared to the same period in 2011. The Corporation experienced substantial increases in revenue for wealth management services and gain on sale of residential mortgage loans, as well as a decrease in the provision for loan and lease losses for the three months ended June 30, 2012, as compared to the same period in 2011. These improvements were partially offset by an increase in due diligence and merger-related expenses, salaries and employee benefits, intangible asset amortization and other operating expenses between the periods. |
| | • | | Tax-equivalent net interest income of $16.0 million for the three months ended June 30, 2012 increased $127 thousand or 0.8% from the $15.9 million of tax-equivalent net interest income for the same period in 2011. This increase was |
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| | due to a $767 thousand reduction in the interest paid on interest-bearing liabilities, partially offset by a $647 thousand decrease in the interest earned on interest-earning assets as a result of the continued low-rate environment. |
| | • | | The tax-equivalent net interest margin of 3.85%, for the three months ended June 30, 2012 was a 16 basis point decline from the 4.01% tax-equivalent net interest margin for the same period in 2011, as the yield on interest-earning assets decreased 38 basis points as compared to the same period in 2011. This decrease was partially offset by a 26 basis point decrease in the rate paid on interest-bearing liabilities between the periods. |
| | • | | Revenue for wealth management services for the three months ended June 30, 2012 was $7.2 million, an increase of 42.1% from the $5.1 million generated during the same period in 2011. Wealth Management Division assets under management, administration, supervision and brokerage as of June 30, 2012 were $6.3 billion, an increase of $1.4 billion, or 30.0%, from June 30, 2011. This increase was the result of the May 15, 2012 acquisition of DTC, along with organic growth resulting from the continued successes of the division’s strategic initiatives. |
| | • | | Net gain on sale of residential mortgage loans for the three months ended June 30, 2012 was $1.3 million as compared to $656 thousand for the same period in 2011. The 98.8% increase was attributable to a $20.4 million, or 65.5%, increase in residential mortgage loan originations between the periods, coupled with the Corporation’s decision to sell a larger portion of these loans, rather than hold them in portfolio. During the three months ended June 30, 2012, the Corporation sold $44.2 million of residential mortgage loans, representing 86.0% of originations, as compared to $17.2 million, or 55.2% of originations, during the same period in 2011. |
| | • | | Non-interest income of $11.4 million, representing 41.6% of total revenue (net interest income plus non-interest income), for the three months ended June 30, 2012, increased $3.2 million, or 39.0%, from the same period in 2011. Non-interest income was 34.1% of total revenue for the three months ended June 30, 2011. |
| | • | | Salaries and employee benefits for the three months ended June 30, 2012 of $10.1 million increased $1.8 million, or 21.8%, as compared to the same period in 2011. The increase between the periods was related to the staffing increases resulting from the PWMG and DTC acquisitions, annual salary increases, along with increases in health insurance costs. |
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| | • | | Amortization of intangible assets for the three months ended June 30, 2012 increased $294 thousand, or 110.5%, as compared to the same period in 2011, primarily due to the amortization expense associated with the $12.4 million of amortizable intangible assets acquired in the May 27, 2011 acquisition of PWMG and, to a lesser extent, the amortization expense associated with the $4.9 million of amortizable intangible assets acquired in the May 15, 2012 acquisition of DTC. |
| | • | | Deposits of $1.43 billion, as of June 30, 2012, increased $44.2 million, or 3.2%, from $1.38 billion as of December 31, 2011. Primarily contributing to this increase was a $74.6 million, or 18.9%, increase in money market deposits, partially offset by a $29.8 million, or 45.7%, decrease in wholesale non-maturity deposits between the dates. Non-interest-bearing deposits continue to be strong, representing 23.6% of total deposits as of both June 30, 2012 and December 31, 2011. |
| | • | | Total portfolio loans and leases of $1.30 billion, as of June 30, 2012, remained relatively unchanged from $1.29 billion as of December 31, 2011. Loan growth was primarily concentrated in the commercial mortgage and consumer loan segments of the portfolio, partially offset by decreases in the commercial and industrial, construction, residential mortgage and home equity segments of the portfolio. |
| | • | | Nonperforming loans and leases, as of June 30, 2012, totaled $18.3 million, or 1.41% of portfolio loans and leases, as compared to $14.3 million, or 1.11% of portfolio loans and leases as of December 31, 2011. However, nonperforming loans and leases declined $4.3 million during the three months ended June 30, 2012, from $22.6 million as of March 31, 2012, a decrease of 18.9%. Included in the $18.3 million of nonperforming loans and leases as of June 30, 2012 is a $1.0 million commercial and industrial loan which paid off, in full, on July 2, 2012. |
| | • | | The provision for loan and lease losses (the “Provision”) for the three months ended June 30, 2012 was $1.0 million, a decrease of $916 thousand as compared to the same period in 2011. The decrease in the Provision between periods was primarily due to reduced charge-off activity, as impairments of non-performing loans declined for the three months ended June 30, 2012, as compared to the same period in 2011. |
| | • | | The allowance for loan and lease losses, as of June 30, 2012, of $13.1 million, was 1.01% of portfolio loans and leases, as compared to $12.8 million, or 0.98% of portfolio loans and leases as of December 31, 2011. |
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| | • | | Available for sale investment securities as of June 30, 2012 totaled $329.9 million, as compared to $272.3 million as of December 31, 2011, as cash inflows from deposit increases as well as Federal Home Loan Bank advances were utilized to fund investment purchases. The net gain on sale of available for sale investment securities for the three months ended June 30, 2012 was $716 thousand, as compared to a net gain on sale of $577 thousand for the same period in 2011. |
| | • | | 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”. The Corporation’s equity grew $11.7 million, or 6.3%, from December 31, 2011 to June 30, 2012. However, the Corporation’s tangible equity ratio, as of June 30, 2012, decreased 13 basis points to 8.14%, as compared to 8.27% as of December 31, 2011. This decrease was directly related to the $11.0 million of goodwill and intangible assets recorded in connection with the DTC acquisition. |
| | • | | Construction has begun on our full-service branch in Bala Cynwyd, Pennsylvania, just outside Philadelphia. The branch is projected to be completed and open for business during the fourth quarter of 2012. |
EARNINGS CONFERENCE CALL
The Corporation will hold an earnings conference call at 8:30 a.m. EDT on Friday, July 27, 2012. Interested parties may participate by calling 1-877-317-6789, conference number 10015161. A taped replay of the conference call will be available within one hour after the conclusion of the call and will remain available through August 13, 2012. The number to call for the taped replay is 1-877-344-7529 and the Replay Passcode is 10015161.
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 athttp://www.bmtc.com/investor_01.cfm. An online archive of the webcast will be available within one hour of the conclusion of the call. The Corporation has also recently expanded its Investor Relations website to include added resources and information for shareholders and interested investors. Interested parties are encouraged to utilize the expanded resources of the site for more information on Bryn Mawr Bank Corporation or by calling Aaron Strenkoski, Vice President – Finance/Investor Relations at 610-581-4822.
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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 including our acquisition of the Private Wealth Management Group of the Hershey Trust Company and Davidson Trust Company and
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the anticipated acquisition of First Bank of Delaware; 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 more 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.
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Bryn Mawr Bank Corporation
Consolidated Statements of Income - (unaudited)
(Dollars in thousands, except per share data)
| | | | | | | | | | | | | | | | | | | | |
| | | For The Three Months Ended | |
| | | Jun 30,
2012 | | | Mar 31,
2012 | | | Dec 31,
2011 | | | Sept 30,
2011 | | | Jun 30,
2011 | |
| | | | | |
Interest income | | $ | 18,204 | | | $ | 18,353 | | | $ | 18,690 | | | $ | 18,672 | | | $ | 18,851 | |
Interest expense | | | 2,285 | | | | 2,387 | | | | 2,772 | | | | 3,018 | | | | 3,052 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net interest income | | | 15,919 | | | | 15,966 | | | | 15,918 | | | | 15,654 | | | | 15,799 | |
Provision for loan and lease losses | | | 1,003 | | | | 1,000 | | | | 1,056 | | | | 1,828 | | | | 1,919 | |
| | | | | | | | | | | | | | | | | | | | |
Net interest income after provision for loan and lease losses | | | 14,916 | | | | 14,966 | | | | 14,862 | | | | 13,826 | | | | 13,880 | |
| | | | | |
Fees for wealth management services | | | 7,211 | | | | 6,229 | | | | 6,306 | | | | 6,098 | | | | 5,075 | |
Loan servicing and other fees | | | 436 | | | | 435 | | | | 454 | | | | 449 | | | | 460 | |
Service charges on deposits | | | 609 | | | | 580 | | | | 654 | | | | 646 | | | | 615 | |
Net gain on sale of residential mortgage loans | | | 1,304 | | | | 1,170 | | | | 699 | | | | 764 | | | | 656 | |
Net gain on sale of available for sale investments | | | 716 | | | | — | | | | 373 | | | | 343 | | | | 577 | |
Net gain (loss) on sale of other real estate owned (“OREO”) | | | — | | | | (41 | ) | | | (38 | ) | | | 70 | | | | (110 | ) |
BOLI income | | | 105 | | | | 118 | | | | 114 | | | | 115 | | | | 118 | |
Other operating income | | | 972 | | | | 1,111 | | | | 937 | | | | 791 | | | | 774 | |
| | | | | | | | | | | | | | | | | | | | |
Non-interest income | | | 11,353 | | | | 9,602 | | | | 9,499 | | | | 9,276 | | | | 8,165 | |
| | | | | |
Salaries and wages | | | 8,075 | | | | 7,505 | | | | 7,404 | | | | 7,639 | | | | 6,700 | |
Employee benefits | | | 2,023 | | | | 2,160 | | | | 1,889 | | | | 1,674 | | | | 1,591 | |
Occupancy and bank premises | | | 1,395 | | | | 1,375 | | | | 1,424 | | | | 1,225 | | | | 1,241 | |
Furniture fixtures and equipment | | | 940 | | | | 891 | | | | 938 | | | | 865 | | | | 810 | |
Advertising | | | 359 | | | | 320 | | | | 257 | | | | 204 | | | | 441 | |
Net (recovery) impairment of mortgage servicing rights | | | 87 | | | | (110 | ) | | | 114 | | | | 468 | | | | 196 | |
Amortization of mortgage servicing rights | | | 256 | | | | 219 | | | | 225 | | | | 197 | | | | 158 | |
Intangible asset amortization | | | 560 | | | | 509 | | | | 522 | | | | 541 | | | | 266 | |
FDIC insurance | | | 234 | | | | 219 | | | | 218 | | | | 238 | | | | 250 | |
Merger related / due diligence expense | | | 914 | | | | 209 | | | | (79 | ) | | | 135 | | | | 174 | |
Professional fees | | | 571 | | | | 657 | | | | 647 | | | | 516 | | | | 738 | |
Other operating expenses | | | 2,831 | | | | 2,588 | | | | 2,916 | | | | 2,283 | | | | 2,304 | |
| | | | | | | | | | | | | | | | | | | | |
Non-interest expense | | | 18,245 | | | | 16,542 | | | | 16,475 | | | | 15,985 | | | | 14,869 | |
| | | | | |
Income before income taxes | | | 8,024 | | | | 8,026 | | | | 7,886 | | | | 7,117 | | | | 7,176 | |
Income tax expense | | | 2,763 | | | | 2,791 | | | | 2,716 | | | | 2,095 | | | | 2,371 | |
| | | | | | | | | | | | | | | | | | | | |
Net income | | $ | 5,261 | | | $ | 5,235 | | | $ | 5,170 | | | $ | 5,022 | | | $ | 4,805 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Per share data: | | | | | | | | | | | | | | | | | | | | |
Weighted average shares outstanding | | | 13,156,231 | | | | 13,065,885 | | | | 12,989,352 | | | | 12,948,979 | | | | 12,693,782 | |
Dilutive common shares (est) | | | 158,570 | | | | 147,502 | | | | 99,464 | | | | 36,306 | | | | 24,491 | |
| | | | | | | | | | | | | | | | | | | | |
Adjusted weighted average dilutive shares | | | 13,314,801 | | | | 13,213,387 | | | | 13,088,816 | | | | 12,985,285 | | | | 12,718,273 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Basic earnings per common share | | $ | 0.40 | | | $ | 0.40 | | | $ | 0.40 | | | $ | 0.39 | | | $ | 0.38 | |
| | | | | |
Diluted earnings per common share | | $ | 0.40 | | | $ | 0.40 | | | $ | 0.39 | | | $ | 0.39 | | | $ | 0.38 | |
| | | | | |
Dividend declared per share | | $ | 0.16 | | | $ | 0.16 | | | $ | 0.15 | | | $ | 0.15 | | | $ | 0.15 | |
| | | | | |
Effective tax rate | | | 34.4 | % | | | 34.8 | % | | | 34.4 | % | | | 29.4 | % | | | 33.0 | % |
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Bryn Mawr Bank Corporation
Consolidated Statements of Income - (unaudited)
(Dollars in thousands, except per share data)
| | | | | | | | |
| | | For The Six Months Ended | |
| | | Jun 30,
2012 | | | Jun 30,
2011 | |
| | |
Interest income | | $ | 36,557 | | | $ | 37,077 | |
Interest expense | | | 4,672 | | | | 5,871 | |
| | | | | | | | |
| | |
Net interest income | | | 31,885 | | | | 31,206 | |
Provision for loan and lease losses | | | 2,003 | | | | 3,204 | |
| | | | | | | | |
Net interest income after provision for loan and lease losses | | | 29,882 | | | | 28,002 | |
| | |
Fees for wealth management services | | | 13,440 | | | | 9,265 | |
Loan servicing and other fees | | | 871 | | | | 921 | |
Service charges on deposits | | | 1,189 | | | | 1,195 | |
Net gain on sale of residential mortgage loans | | | 2,474 | | | | 1,054 | |
Net gain on sale of available for sale investments | | | 716 | | | | 1,067 | |
BOLI income | | | 223 | | | | 233 | |
Net loss on sale of other real estate owned (“OREO”) | | | (41 | ) | | | (129 | ) |
Other operating income | | | 2,083 | | | | 1,769 | |
| | | | | | | | |
Non-interest income | | | 20,955 | | | | 15,375 | |
| | |
Salaries and wages | | | 15,580 | | | | 13,041 | |
Employee benefits | | | 4,183 | | | | 3,326 | |
Occupancy and bank premises | | | 2,770 | | | | 2,527 | |
Furniture fixtures and equipment | | | 1,831 | | | | 1,706 | |
Advertising | | | 679 | | | | 705 | |
Net (recovery) impairment of mortgage servicing rights | | | (23 | ) | | | 204 | |
Amortization of mortgage servicing rights | | | 475 | | | | 327 | |
Intangible asset amortization | | | 1,069 | | | | 427 | |
FDIC insurance | | | 453 | | | | 730 | |
Merger related / due diligence expense | | | 1,123 | | | | 481 | |
Professional fees | | | 1,228 | | | | 1,148 | |
Other operating expenses | | | 5,419 | | | | 4,444 | |
| | | | | | | | |
Non-interest expense | | | 34,787 | | | | 29,066 | |
| | |
Income before income taxes | | | 16,050 | | | | 14,311 | |
Income tax expense | | | 5,554 | | | | 4,790 | |
| | | | | | | | |
Net income | | $ | 10,496 | | | $ | 9,521 | |
| | | | | | | | |
| | |
Per share data: | | | | | | | | |
Weighted average shares outstanding | | | 13,111,058 | | | | 12,520,211 | |
Dilutive common shares (est) | | | 153,036 | | | | 19,446 | |
| | | | | | | | |
Adjusted weighted average shares | | | 13,264,094 | | | | 12,539,657 | |
| | | | | | | | |
| | |
Basic earnings per common share | | $ | 0.80 | | | $ | 0.76 | |
| | |
Diluted earnings per common share | | $ | 0.79 | | | $ | 0.76 | |
| | |
Dividend declared per share | | $ | 0.32 | | | $ | 0.30 | |
| | |
Effective tax rate | | | 34.6 | % | | | 33.5 | % |
Bryn Mawr Bank Corporation
Consolidated Balance Sheets - (unaudited)
(Dollars in thousands)
| | | | | | | | | | | | | | | | | | | | |
| | | June 30,
2012 | | | Mar 31,
2012 | | | Dec 31,
2011 | | | Sept 30,
2011 | | | June 30,
2011 | |
Assets | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Interest bearing deposits with banks | | $ | 68,133 | | | $ | 55,548 | | | $ | 57,265 | | | $ | 52,205 | | | $ | 34,780 | |
Money market funds | | | 191 | | | | 211 | | | | 104 | | | | 106 | | | | 113 | |
Investment securities - AFS | | | 329,876 | | | | 326,601 | | | | 272,317 | | | | 275,729 | | | | 289,762 | |
| | | | | |
Loans held for sale | | | 1,668 | | | | 5,784 | | | | 1,588 | | | | 4,857 | | | | 5,923 | |
| | | | | |
Portfolio loans: | | | | | | | | | | | | | | | | | | | | |
Consumer | | | 15,920 | | | | 13,644 | | | | 11,429 | | | | 12,235 | | | | 12,116 | |
Commercial & industrial | | | 264,116 | | | | 270,766 | | | | 267,204 | | | | 271,228 | | | | 257,771 | |
Commercial mortgages | | | 445,254 | | | | 430,896 | | | | 419,130 | | | | 414,656 | | | | 404,000 | |
Construction | | | 33,815 | | | | 51,274 | | | | 52,844 | | | | 59,303 | | | | 55,804 | |
Residential mortgages | | | 304,249 | | | | 306,911 | | | | 306,478 | | | | 279,696 | | | | 280,093 | |
Home equity lines & loans | | | 202,676 | | | | 202,015 | | | | 207,917 | | | | 209,687 | | | | 210,477 | |
Leases | | | 30,549 | | | | 28,974 | | | | 30,390 | | | | 31,552 | | | | 33,187 | |
| | | | | | | | | | | | | | | | | | | | |
Total portfolio loans and leases | | | 1,296,579 | | | | 1,304,480 | | | | 1,295,392 | | | | 1,278,357 | | | | 1,253,448 | |
| | | | | |
Earning assets | | | 1,696,447 | | | | 1,692,624 | | | | 1,626,666 | | | | 1,611,254 | | | | 1,584,026 | |
| | | | | |
Cash and due from banks | | | 13,147 | | | | 11,939 | | | | 11,771 | | | | 10,801 | | | | 20,620 | |
Allowance for loan and lease losses | | | (13,140 | ) | | | (13,040 | ) | | | (12,753 | ) | | | (11,654 | ) | | | (11,341 | ) |
Premises and equipment | | | 28,911 | | | | 28,680 | | | | 29,328 | | | | 29,615 | | | | 29,469 | |
Accrued interest receivable | | | 6,009 | | | | 6,037 | | | | 6,061 | | | | 6,075 | | | | 6,103 | |
Mortgage servicing rights | | | 4,220 | | | | 4,217 | | | | 4,041 | | | | 4,206 | | | | 4,662 | |
Goodwill | | | 29,752 | | | | 24,689 | | | | 24,689 | | | | 23,169 | | | | 23,169 | |
Other intangible assets | | | 22,855 | | | | 17,505 | | | | 18,014 | | | | 18,536 | | | | 19,077 | |
Bank owned life insurance (“BOLI”) | | | 19,658 | | | | 19,552 | | | | 19,434 | | | | 19,321 | | | | 19,205 | |
FHLB stock | | | 10,746 | | | | 11,009 | | | | 11,588 | | | | 12,198 | | | | 12,840 | |
Net Deferred income tax asset | | | 11,208 | | | | 12,721 | | | | 13,662 | | | | 13,781 | | | | 13,400 | |
Other investments | | | 5,955 | | | | 5,710 | | | | 5,612 | | | | 4,982 | | | | 5,229 | |
Other assets | | | 19,117 | | | | 16,432 | | | | 16,794 | | | | 14,835 | | | | 14,268 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total assets | | $ | 1,854,885 | | | $ | 1,838,075 | | | $ | 1,774,907 | | | $ | 1,757,119 | | | $ | 1,740,727 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Liabilities and shareholders’ equity | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Interest-bearing checking | | $ | 237,126 | | | $ | 235,841 | | | $ | 233,562 | | | $ | 224,609 | | | $ | 222,128 | |
Money market | | | 468,314 | | | | 418,503 | | | | 393,729 | | | | 384,463 | | | | 350,285 | |
Savings | | | 133,204 | | | | 135,912 | | | | 130,613 | | | | 130,910 | | | | 129,684 | |
Wholesale non-maturity deposits | | | 35,365 | | | | 66,518 | | | | 65,173 | | | | 65,428 | | | | 65,185 | |
Wholesale time deposits | | | 22,505 | | | | 22,062 | | | | 23,550 | | | | 28,992 | | | | 31,818 | |
Time deposits | | | 193,081 | | | | 212,003 | | | | 209,333 | | | | 224,331 | | | | 242,683 | |
| | | | | | | | | | | | | | | | | | | | |
Interest-bearing deposits | | | 1,089,595 | | | | 1,090,839 | | | | 1,055,960 | | | | 1,058,733 | | | | 1,041,783 | |
| | | | | |
Non-interest bearing deposits | | | 336,972 | | | | 334,918 | | | | 326,409 | | | | 292,415 | | | | 295,656 | |
| | | | | | | | | | | | | | | | | | | | |
Total deposits | | | 1,426,567 | | | | 1,425,757 | | | | 1,382,369 | | | | 1,351,148 | | | | 1,337,439 | |
| | | | | |
Subordinated debentures | | | 22,500 | | | | 22,500 | | | | 22,500 | | | | 22,500 | | | | 22,500 | |
Junior subordinated debentures | | | — | | | | — | | | | — | | | | 11,992 | | | | 12,004 | |
Short-term borrowings | | | 14,675 | | | | 13,254 | | | | 12,863 | | | | 22,535 | | | | 9,541 | |
FHLB advances and other borrowings | | | 169,588 | | | | 164,698 | | | | 147,795 | | | | 140,532 | | | | 152,501 | |
Other liabilities | | | 23,957 | | | | 20,537 | | | | 23,467 | | | | 21,278 | | | | 23,359 | |
Shareholders’ equity | | | 197,598 | | | | 191,329 | | | | 185,913 | | | | 187,134 | | | | 183,383 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total liabilities and shareholders’ equity | | $ | 1,854,885 | | | $ | 1,838,075 | | | $ | 1,774,907 | | | $ | 1,757,119 | | | $ | 1,740,727 | |
| | | | | | | | | | | | | | | | | | | | |
9
Bryn Mawr Bank Corporation
Consolidated Quarterly Average Balance Sheets - (unaudited)
(Dollars in thousands)
| | | | | | | | | | | | | | | | | | | | |
| | | 2012
2Q | | | 2012
1Q | | | 2011
4Q | | | 2011
3Q | | | 2011
2Q | |
Assets | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Interest bearing deposits with banks | | $ | 57,542 | | | $ | 38,337 | | | $ | 56,570 | | | $ | 57,855 | | | $ | 47,159 | |
Money market funds | | | 192 | | | | 219 | | | | 109 | | | | 108 | | | | 217 | |
Investment securities | | | 319,806 | | | | 302,708 | | | | 277,946 | | | | 281,567 | | | | 292,097 | |
Loans held for sale | | | 3,810 | | | | 3,935 | | | | 3,888 | | | | 6,060 | | | | 4,347 | |
Portfolio loans and leases | | | 1,290,209 | | | | 1,295,617 | | | | 1,282,916 | | | | 1,253,804 | | | | 1,244,140 | |
| | | | | | | | | | | | | | | | | | | | |
Earning assets | | | 1,671,559 | | | | 1,640,816 | | | | 1,621,429 | | | | 1,599,394 | | | | 1,587,960 | |
| | | | | |
Cash and due from banks | | | 12,259 | | | | 11,539 | | | | 11,516 | | | | 11,905 | | | | 12,224 | |
Allowance for loan and lease losses | | | (13,383 | ) | | | (13,089 | ) | | | (12,110 | ) | | | (11,790 | ) | | | (11,091 | ) |
Premises and equipment | | | 28,866 | | | | 29,095 | | | | 29,586 | | | | 29,706 | | | | 29,335 | |
Goodwill | | | 26,201 | | | | 24,688 | | | | 23,190 | | | | 23,169 | | | | 19,745 | |
Other intangible assets | | | 21,427 | | | | 17,804 | | | | 18,319 | | | | 18,860 | | | | 11,669 | |
Bank owned life insurance | | | 19,589 | | | | 19,480 | | | | 19,359 | | | | 19,246 | | | | 19,128 | |
Deferred income taxes | | | 11,943 | | | | 13,454 | | | | 13,878 | | | | 13,200 | | | | 14,105 | |
Other assets | | | 39,742 | | | | 41,397 | | | | 39,884 | | | | 40,266 | | | | 42,805 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total assets | | $ | 1,818,203 | | | $ | 1,785,184 | | | $ | 1,765,051 | | | $ | 1,743,956 | | | $ | 1,725,880 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Liabilities and shareholders’ equity | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Interest-bearing checking | | $ | 236,131 | | | $ | 227,817 | | | $ | 224,648 | | | $ | 225,569 | | | $ | 229,451 | |
Money market | | | 436,717 | | | | 406,972 | | | | 394,150 | | | | 367,276 | | | | 355,740 | |
Savings | | | 133,105 | | | | 132,451 | | | | 132,617 | | | | 131,421 | | | | 132,046 | |
Wholesale non-maturity deposits | | | 47,463 | | | | 65,117 | | | | 65,127 | | | | 65,177 | | | | 65,129 | |
Wholesale time deposits | | | 22,280 | | | | 22,354 | | | | 27,749 | | | | 29,187 | | | | 34,106 | |
Time deposits | | | 203,344 | | | | 210,973 | | | | 214,684 | | | | 234,645 | | | | 237,771 | |
| | | | | | | | | | | | | | | | | | | | |
Interest-bearing deposits | | | 1,079,040 | | | | 1,065,684 | | | | 1,058,975 | | | | 1,053,275 | | | | 1,054,243 | |
| | | | | |
Non-interest bearing deposits | | | 323,539 | | | | 305,468 | | | | 304,883 | | | | 290,468 | | | | 279,210 | |
| | | | | | | | | | | | | | | | | | | | |
Total deposits | | | 1,402,579 | | | | 1,371,152 | | | | 1,363,858 | | | | 1,343,743 | | | | 1,333,453 | |
| | | | | |
Subordinated debentures | | | 22,500 | | | | 22,500 | | | | 22,500 | | | | 22,500 | | | | 22,500 | |
Junior subordinated debentures | | | — | | | | — | | | | 10,294 | | | | 12,000 | | | | 12,012 | |
Short-term borrowings | | | 13,149 | | | | 13,885 | | | | 15,147 | | | | 10,908 | | | | 9,260 | |
FHLB advances and other borrowings | | | 163,908 | | | | 165,402 | | | | 140,177 | | | | 148,963 | | | | 149,215 | |
Other liabilities | | | 23,159 | | | | 25,258 | | | | 24,991 | | | | 21,481 | | | | 24,562 | |
Shareholders’ equity | | | 192,908 | | | | 186,987 | | | | 188,084 | | | | 184,361 | | | | 174,878 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total liabilities and shareholders’ equity | | $ | 1,818,203 | | | $ | 1,785,184 | | | $ | 1,765,051 | | | $ | 1,743,956 | | | $ | 1,725,880 | |
| | | | | | | | | | | | | | | | | | | | |
10
Bryn Mawr Bank Corporation
Consolidated Average Balance Sheets - (unaudited)
(Dollars in thousands)
| | | | | | | | |
| | | 2012
Year-to-date | | | 2011
Year-to-date | |
Assets | | | | | | | | |
| | |
Interest bearing deposits with banks | | $ | 47,939 | | | $ | 47,180 | |
Money market funds | | | 205 | | | | 197 | |
Investment securities | | | 311,257 | | | | 301,586 | |
Loans held for sale | | | 3,872 | | | | 3,418 | |
Portfolio loans and leases | | | 1,292,914 | | | | 1,223,004 | |
| | | | | | | | |
Earning assets | | | 1,656,187 | | | | 1,575,385 | |
| | |
Cash and due from banks | | | 11,899 | | | | 12,424 | |
Allowance for loan and lease losses | | | (13,236 | ) | | | (10,835 | ) |
Premises and equipment | | | 28,981 | | | | 29,228 | |
Goodwill | | | 25,444 | | | | 18,708 | |
Intangible assets | | | 19,616 | | | | 9,348 | |
Bank owned life insurance | | | 19,534 | | | | 19,070 | |
FHLB stock | | | 11,114 | | | | 13,178 | |
Deferred tax asset | | | 12,699 | | | | 14,334 | |
Other assets | | | 29,456 | | | | 30,546 | |
| | | | | | | | |
| | |
Total assets | | $ | 1,801,694 | | | $ | 1,711,386 | |
| | | | | | | | |
| | |
Liabilities and shareholders’ equity | | | | | | | | |
| | |
Interest-bearing checking | | $ | 231,975 | | | $ | 228,582 | |
Money market | | | 421,844 | | | | 347,200 | |
Savings | | | 132,778 | | | | 131,829 | |
Wholesale non-maturity deposits | | | 56,290 | | | | 70,478 | |
Wholesale time deposits | | | 22,317 | | | | 32,423 | |
Time deposits | | | 207,158 | | | | 239,626 | |
| | | | | | | | |
Interest-bearing deposits | | | 1,072,362 | | | | 1,050,138 | |
| | |
Non-interest bearing deposits | | | 314,504 | | | | 277,264 | |
| | | | | | | | |
Total deposits | | | 1,386,866 | | | | 1,327,402 | |
| | |
Subordinated debentures | | | 22,500 | | | | 22,500 | |
FHLB advances and other borrowings | | | 164,943 | | | | 146,287 | |
Junior subordinated debentures | | | — | | | | 12,019 | |
Short-term borrowings | | | 13,229 | | | | 9,705 | |
Other liabilities | | | 24,209 | | | | 23,914 | |
Shareholders’ equity | | | 189,947 | | | | 169,559 | |
| | | | | | | | |
| | |
Total liabilities and shareholders’ equity | | $ | 1,801,694 | | | $ | 1,711,386 | |
| | | | | | | | |
Bryn Mawr Bank Corporation
Consolidated Selected Financial Data - (unaudited)
(Dollars in thousands, except per share data)
March 31, 2012
| | | | | | | | | | | | | | | | | | | | |
| For the period end: | | 2012 2Q | | | 2012 1Q | | | 2011 4Q | | | 2011 3Q | | | 2011 2Q | |
Asset Quality Data | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Nonaccrual loans and leases | | $ | 14,929 | | | $ | 22,570 | | | $ | 14,315 | | | $ | 14,208 | | | $ | 16,128 | |
90 + days past due loans - still accruing | | | 3,376 | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Nonperforming loans and leases | | | 18,305 | | | | 22,570 | | | | 14,315 | | | | 14,208 | | | | 16,128 | |
Other real estate owned | | | 865 | | | | 404 | | | | 549 | | | | 1,301 | | | | 811 | |
| | | | | | | | | | | | | | | | | | | | |
Total nonperforming assets | | $ | 19,170 | | | $ | 22,974 | | | $ | 14,864 | | | $ | 15,509 | | | $ | 16,939 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Troubled debt restructurings included in nonperforming | | $ | 4,005 | | | $ | 4,223 | | | $ | 4,300 | | | $ | 901 | | | $ | 1,478 | |
Troubled debt restructurings in compliance with modified terms | | | 8,302 | | | | 7,970 | | | | 7,166 | | | | 7,182 | | | | 5,469 | |
| | | | | | | | | | | | | | | | | | | | |
Total troubled debt restructurings | | $ | 12,307 | | | $ | 12,193 | | | $ | 11,466 | | | $ | 8,083 | | | $ | 6,947 | |
| | | | | |
Nonperforming loans and leases / portfolio loans | | | 1.41 | % | | | 1.73 | % | | | 1.11 | % | | | 1.11 | % | | | 1.29 | % |
Nonperforming assets / assets | | | 1.03 | % | | | 1.25 | % | | | 0.84 | % | | | 0.88 | % | | | 0.97 | % |
| | | | | |
Net loan (recoveries) charge-offs (annualized)/ average loans | | | 0.26 | % | | | 0.21 | % | | | -0.02 | % | | | 0.49 | % | | | 0.36 | % |
Net lease charge-offs (annualized)/ average leases | | | 0.94 | % | | | 0.67 | % | | | 0.22 | % | | | 0.37 | % | | | 1.81 | % |
Net loan and lease (recoveries) charge-offs (annualized)/ average loans and leases | | | 0.28 | % | | | 0.23 | % | | | -0.01 | % | | | 0.49 | % | | | 0.40 | % |
| | | | | |
Delinquency rate - loans and leases >30days | | | 1.36 | % | | | 1.52 | % | | | 1.37 | % | | | 1.33 | % | | | 1.35 | % |
| | | | | |
Delinquent loans and leases - 30-89 days | | $ | 2,722 | | | $ | 5,468 | | | $ | 5,311 | | | $ | 4,480 | | | $ | 3,492 | |
| | | | | |
Delinquency rate - loans and leases 30-89 days | | | 0.21 | % | | | 0.28 | % | | | 0.29 | % | | | 0.35 | % | | | 0.28 | % |
| | | | | |
Changes in the allowance for loan and lease losses | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Balance, beginning of period | | $ | 13,040 | | | $ | 12,753 | | | $ | 11,654 | | | $ | 11,341 | | | $ | 10,648 | |
| | | | | |
Charge-offs | | | (960 | ) | | | (839 | ) | | | (466 | ) | | | (1,817 | ) | | | (1,325 | ) |
| | | | | |
Recoveries | | | 57 | | | | 126 | | | | 509 | | | | 302 | | | | 99 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net (charge-offs) / recoveries | | | (903 | ) | | | (713 | ) | | | 43 | | | | (1,515 | ) | | | (1,226 | ) |
| | | | | |
Provision for loan and lease losses | | | 1,003 | | | | 1,000 | | | | 1,056 | | | | 1,828 | | | | 1,919 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Balance, end of period | | $ | 13,140 | | | $ | 13,040 | | | $ | 12,753 | | | $ | 11,654 | | | $ | 11,341 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Allowance for loan and lease losses / loans and leases | | | 1.01 | % | | | 1.00 | % | | | 0.98 | % | | | 0.91 | % | | | 0.90 | % |
Allowance for loan and lease losses / nonperforming loans and leases | | | 71.8 | % | | | 57.8 | % | | | 89.1 | % | | | 82.0 | % | | | 70.3 | % |
11
Bryn Mawr Bank Corporation
Consolidated Selected Financial Data - (unaudited)
(Dollars in thousands, except per share data)
March 31, 2012
| | | | | | | | | | | | | | | | | | | | |
| For the period and period end: | | 2012 2Q | | | 2012 1Q | | | 2011 4Q | | | 2011 3Q | | | 2011 2Q | |
Selected ratios (annualized): | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Return on average assets | | | 1.16 | % | | | 1.18 | % | | | 1.16 | % | | | 1.14 | % | | | 1.12 | % |
Return on average shareholders’ equity | | | 10.97 | % | | | 11.26 | % | | | 10.91 | % | | | 10.81 | % | | | 11.02 | % |
Return on average tangible equity (a non-GAAP measure) (2) | | | 14.57 | % | | | 14.57 | % | | | 14.00 | % | | | 14.00 | % | | | 13.44 | % |
Yield on loans and leases* | | | 5.32 | % | | | 5.33 | % | | | 5.46 | % | | | 5.52 | % | | | 5.63 | % |
Yield on interest earning assets* | | | 4.40 | % | | | 4.52 | % | | | 4.59 | % | | | 4.65 | % | | | 4.78 | % |
Cost of interest bearing funds | | | 0.72 | % | | | 0.76 | % | | | 0.88 | % | | | 0.96 | % | | | 0.98 | % |
Net interest margin* | | | 3.85 | % | | | 3.93 | % | | | 3.91 | % | | | 3.90 | % | | | 4.01 | % |
Book value per share | | $ | 14.75 | | | $ | 14.43 | | | $ | 14.09 | | | $ | 14.30 | | | $ | 14.17 | |
Tangible book value per share | | $ | 10.82 | | | $ | 11.25 | | | $ | 10.82 | | | $ | 11.11 | | | $ | 10.91 | |
Period end shares outstanding | | | 13,398,237 | | | | 13,254,694 | | | | 13,194,439 | | | | 13,086,770 | | | | 12,941,320 | |
| | | | | |
Selected data: | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Mortgage loans originated | | $ | 51,427 | | | $ | 55,385 | | | $ | 60,467 | | | $ | 38,998 | | | $ | 31,072 | |
| | | | | |
Mortgage loans sold - servicing retained | | $ | 41,986 | | | $ | 32,778 | | | $ | 20,883 | | | $ | 26,090 | | | $ | 14,957 | |
Mortgage loans sold - servicing released | | | 2,238 | | | | 1,223 | | | | 1,164 | | | | 1,922 | | | | 2,196 | |
| | | | | | | | | | | | | | | | | | | | |
Total mortgage loans sold | | $ | 44,224 | | | $ | 34,001 | | | $ | 22,047 | | | $ | 28,012 | | | $ | 17,153 | |
| | | | | |
Yield on loans sold | | | 2.95 | % | | | 3.44 | % | | | 3.17 | % | | | 2.73 | % | | | 3.82 | % |
| | | | | |
Mortgage loans serviced for others | | $ | 575,533 | | | $ | 571,440 | | | $ | 574,422 | | | $ | 593,125 | | | $ | 595,196 | |
| | | | | |
Total Wealth assets under management / administration / supervision / brokerage(1) | | $ | 6,275,940 | | | $ | 5,152,965 | | | $ | 4,831,631 | | | $ | 4,501,433 | | | $ | 4,830,417 | |
| | | | | | | | | | | | | | | | | | | | |
| * | 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) | Tangible equity equals shareholders’ equity minus goodwill and other intangible assets. |
Bryn Mawr Bank Corporation
Consolidated Selected Financial Data - (unaudited)
(Dollars in thousands, except per share data)
March 31, 2012
| | | | | | | | |
| | | 2012
Year-to-date | | | 2011
Year-to-date | |
Selected ratios (annualized): | | | | | | | | |
| | |
Return on average assets | | | 1.17 | % | | | 1.12 | % |
Return on average shareholders’ equity | | | 11.11 | % | | | 11.32 | % |
Return on average tangible equity (a non-GAAP measure)(2) | | | 14.57 | % | | | 13.57 | % |
Yield on loans and leases* | | | 5.33 | % | | | 5.63 | % |
Yield on interest earning assets* | | | 4.46 | % | | | 4.77 | % |
Cost of interest bearing funds | | | 0.74 | % | | | 0.95 | % |
Net interest margin* | | | 3.89 | % | | | 4.02 | % |
| | |
Selected data: | | | | | | | | |
| | |
Mortgage loans originated | | $ | 106,812 | | | $ | 69,216 | |
| | |
Mortgage loans sold - servicing retained | | $ | 74,764 | | | $ | 28,259 | |
Mortgage loans sold - servicing released | | | 3,461 | | | | 3,145 | |
| | | | | | | | |
Total mortgage loans sold | | $ | 78,225 | | | $ | 31,404 | |
| * | Yield on loans and leases, interest earning assets and net interest margin are calculated on a tax equivalent basis. |
| (2) | Tangible equity equals shareholders’ equity minus goodwill and other intangible assets. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investment Portfolio ($’s in thousands) | | As of June 30, 2012 | | | As of December 31, 2011 | | | As of June 30, 2011 | |
| | | Amortized
Cost | | | Fair
Value | | | Net
Unrealized
Gain / (Loss) | | | Amortized
Cost | | | Fair
Value | | | Net
Unrealized
Gain / (Loss) | | | Amortized
Cost | | | Fair
Value | | | Net
Unrealized
Gain / (Loss) | |
| SECURITY DESCRIPTION | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
Obligations of U. S. government and agencies | | $ | 88,859 | | | $ | 89,473 | | | $ | 614 | | | $ | 104,252 | | | $ | 104,570 | | | $ | 318 | | | $ | 124,933 | | | $ | 125,594 | | | $ | 661 | |
| | | | | | | | | |
State & political subdivisions | | | 16,411 | | | | 16,533 | | | | 123 | | | | 8,210 | | | | 8,366 | | | | 156 | | | | 4,528 | | | | 4,575 | | | | 47 | |
| | | | | | | | | |
Mortgage backed securities | | | 133,529 | | | | 136,240 | | | | 2,711 | | | | 95,713 | | | | 97,834 | | | | 2,121 | | | | 109,468 | | | | 111,217 | | | | 1,749 | |
| | | | | | | | | |
Collateralized mortgage obligations | | | 60,805 | | | | 61,139 | | | | 334 | | | | 32,418 | | | | 32,623 | | | | 205 | | | | 21,418 | | | | 21,537 | | | | 119 | |
| | | | | | | | | |
Equity securities | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 243 | | | | 295 | | | | 52 | |
| | | | | | | | | |
Other debt securities | | | 1,900 | | | | 1,900 | | | | — | | | | 1,900 | | | | 1,882 | | | | (18 | ) | | | 1,400 | | | | 1,400 | | | | — | |
| | | | | | | | | |
Bond - mutual funds | | | 11,456 | | | | 11,411 | | | | (45 | ) | | | 12,091 | | | | 11,904 | | | | (187 | ) | | | 11,900 | | | | 11,953 | | | | 53 | |
| | | | | | | | | |
Investment CD’s | | | 2,380 | | | | 2,398 | | | | 18 | | | | 2,411 | | | | 2,420 | | | | 9 | | | | 2,441 | | | | 2,439 | | | | (2 | ) |
| | | | | | | | | |
Corporate bonds | | | 10,492 | | | | 10,782 | | | | 289 | | | | 12,616 | | | | 12,718 | | | | 102 | | | | 10,708 | | | | 10,752 | | | | 44 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
Total Investment Portfolio | | $ | 325,832 | | | $ | 329,876 | | | $ | 4,044 | | | $ | 269,611 | | | $ | 272,317 | | | $ | 2,706 | | | $ | 287,039 | | | $ | 289,762 | | | $ | 2,723 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Capital Ratios
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Regulatory Minimum
To Be Well Capitalized | | | 6/30/2012 | | | 3/31/2012 | | | 12/31/2011 | | | 9/30/2011 | | | 6/30/2011 | |
| | | | | | |
Bryn Mawr Trust Company Consolidated | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Tier I Capital to Risk Weighted Assets (RWA) | | | 6.00 | % | | | 11.78 | % | | | 12.19 | % | | | 11.78 | % | | | 11.32 | % | | | 11.05 | % |
Total (Tier II) Capital to RWA | | | 10.00 | % | | | 14.38 | % | | | 14.80 | % | | | 14.37 | % | | | 13.82 | % | | | 13.56 | % |
Tier I Leverage Ratio | | | 5.00 | % | | | 9.15 | % | | | 9.58 | % | | | 9.37 | % | | | 9.15 | % | | | 8.94 | % |
Tangible Equity Ratio | | | | | | | 8.42 | % | | | 8.72 | % | | | 8.67 | % | | | 8.79 | % | | | 8.54 | % |
| | | | | | |
Bryn Mawr Bank Corporation | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Tier I Capital to Risk Weighted Assets (RWA) | | | 6.00 | % | | | 11.38 | % | | | 11.63 | % | | | 11.26 | % | | | 11.71 | % | | | 11.55 | % |
Total (Tier II) Capital to RWA | | | 10.00 | % | | | 13.98 | % | | | 14.23 | % | | | 13.83 | % | | | 14.19 | % | | | 14.05 | % |
Tier I Leverage Ratio | | | 5.00 | % | | | 8.87 | % | | | 9.16 | % | | | 8.97 | % | | | 9.47 | % | | | 9.36 | % |
Tangible Equity Ratio | | | | | | | 8.14 | % | | | 8.30 | % | | | 8.27 | % | | | 8.48 | % | | | 8.31 | % |
12
Bryn Mawr Bank Corporation
Quarterly Average Balances and Tax Equivalent Income and Expense and Tax Equivalent Yields - (unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 2nd Quarter 2012 | | | 1st Quarter 2012 | | | 4th Quarter 2011 | | | 3rd Quarter 2011 | | | 2nd Quarter 2011 | |
| (dollars in thousands) | | Average
Balance | | | Interest
Income/
Expense | | | Average
Rates
Earned/
Paid | | | Average
Balance | | | Interest
Income/
Expense | | | Average
Rates
Earned/
Paid | | | Average
Balance | | | Interest
Income/
Expense | | | Average
Rates
Earned/
Paid | | | Average
Balance | | | Interest
Income/
Expense | | | Average
Rates
Earned/
Paid | | | Average
Balance | | | Interest
Income/
Expense | | | Average
Rates
Earned/
Paid | |
| | | | | | | | | | | | | | | |
Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing deposits with other banks | | $ | 57,542 | | | $ | 30 | | | | 0.21 | % | | $ | 38,337 | | | $ | 23 | | | | 0.24 | % | | $ | 56,570 | | | $ | 27 | | | | 0.19 | % | | $ | 57,855 | | | $ | 29 | | | | 0.20 | % | | $ | 47,159 | | | $ | 27 | | | | 0.23 | % |
Money market funds | | | 192 | | | | — | | | | — | | | | 219 | | | | — | | | | — | | | | 109 | | | | — | | | | — | | | | 108 | | | | — | | | | — | | | | 217 | | | | — | | | | — | |
Investment securities available for sale: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Taxable | | | 305,757 | | | | 1,064 | | | | 1.40 | % | | | 293,086 | | | | 1,122 | | | | 1.54 | % | | | 271,410 | | | | 998 | | | | 1.46 | % | | | 277,634 | | | | 1,159 | | | | 1.66 | % | | | 287,007 | | | | 1,357 | | | | 1.90 | % |
Tax-exempt | | | 14,049 | | | | 66 | | | | 1.89 | % | | | 9,622 | | | | 53 | | | | 2.22 | % | | | 6,536 | | | | 32 | | | | 1.94 | % | | | 3,933 | | | | 18 | | | | 1.82 | % | | | 5,090 | | | | 25 | | | | 1.97 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investment securities available for sale | | | 319,806 | | | | 1,130 | | | | 1.42 | % | | | 302,708 | | | | 1,175 | | | | 1.56 | % | | | 277,946 | | | | 1,030 | | | | 1.47 | % | | | 281,567 | | | | 1,177 | | | | 1.66 | % | | | 292,097 | | | | 1,382 | | | | 1.90 | % |
| | | | | | | | | | | | | | | |
Loans and leases * | | | 1,294,019 | | | | 17,125 | | | | 5.32 | % | | | 1,299,552 | | | | 17,234 | | | | 5.33 | % | | | 1,286,804 | | | | 17,699 | | | | 5.46 | % | | | 1,259,864 | | | | 17,529 | | | | 5.52 | % | | | 1,248,487 | | | | 17,516 | | | | 5.63 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Total interest earning assets | | | 1,671,559 | | | | 18,285 | | | | 4.40 | % | | | 1,640,816 | | | | 18,432 | | | | 4.52 | % | | | 1,621,429 | | | | 18,756 | | | | 4.59 | % | | | 1,599,394 | | | | 18,735 | | | | 4.65 | % | | | 1,587,960 | | | | 18,925 | | | | 4.78 | % |
| | | | | | | | | | | | | | | |
Cash and due from banks | | | 12,259 | | | | | | | | | | | | 11,539 | | | | | | | | | | | | 11,516 | | | | | | | | | | | | 11,905 | | | | | | | | | | | | 12,224 | | | | | | | | | |
Less allowance for loan and lease losses | | | (13,383 | ) | | | | | | | | | | | (13,089 | ) | | | | | | | | | | | (12,110 | ) | | | | | | | | | | | (11,790 | ) | | | | | | | | | | | (11,091 | ) | | | | | | | | |
Other assets | | | 147,768 | | | | | | | | | | | | 145,918 | | | | | | | | | | | | 144,216 | | | | | | | | | | | | 144,447 | | | | | | | | | | | | 136,787 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Total assets | | $ | 1,818,203 | | | | | | | | | | | $ | 1,785,184 | | | | | | | | | | | $ | 1,765,051 | | | | | | | | | | | $ | 1,743,956 | | | | | | | | | | | $ | 1,725,880 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Savings, NOW and market rate deposits | | $ | 805,953 | | | $ | 586 | | | | 0.29 | % | | $ | 767,240 | | | $ | 559 | | | | 0.29 | % | | $ | 751,415 | | | $ | 711 | | | | 0.38 | % | | $ | 724,266 | | | $ | 772 | | | | 0.42 | % | | $ | 717,237 | | | $ | 759 | | | | 0.42 | % |
Other wholesale deposits | | | 47,463 | | | | 43 | | | | 0.36 | % | | | 65,117 | | | | 53 | | | | 0.33 | % | | | 65,127 | | | | 50 | | | | 0.30 | % | | | 65,177 | | | | 51 | | | | 0.31 | % | | | 65,129 | | | | 52 | | | | 0.32 | % |
Wholesale deposits | | | 22,280 | | | | 24 | | | | 0.43 | % | | | 22,354 | | | | 24 | | | | 0.43 | % | | | 27,749 | | | | 73 | | | | 1.04 | % | | | 29,187 | | | | 86 | | | | 1.17 | % | | | 34,106 | | | | 87 | | | | 1.02 | % |
Time deposits | | | 203,344 | | | | 412 | | | | 0.81 | % | | | 210,973 | | | | 490 | | | | 0.93 | % | | | 214,684 | | | | 520 | | | | 0.96 | % | | | 234,645 | | | | 585 | | | | 0.99 | % | | | 237,771 | | | | 620 | | | | 1.05 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total interest-bearing deposits | | | 1,079,040 | | | | 1,065 | | | | 0.40 | % | | | 1,065,684 | | | | 1,126 | | | | 0.42 | % | | | 1,058,975 | | | | 1,354 | | | | 0.51 | % | | | 1,053,275 | | | | 1,494 | | | | 0.56 | % | | | 1,054,243 | | | | 1,518 | | | | 0.58 | % |
| | | | | | | | | | | | | | | |
Subordinated debentures | | | 22,500 | | | | 291 | | | | 5.20 | % | | | 22,500 | | | | 291 | | | | 5.20 | % | | | 22,500 | | | | 287 | | | | 5.06 | % | | | 22,500 | | | | 279 | | | | 4.92 | % | | | 22,500 | | | | 279 | | | | 4.97 | % |
Junior subordinated debentures | | | — | | | | — | | | | — | % | | | — | | | | — | | | | — | % | | | 10,294 | | | | 236 | | | | 9.10 | % | | | 12,000 | | | | 271 | | | | 8.96 | % | | | 12,012 | | | | 271 | | | | 9.05 | % |
Short-term borrowings | | | 13,149 | | | | 5 | | | | 0.15 | % | | | 13,885 | | | | 6 | | | | 0.17 | % | | | 15,147 | | | | 6 | | | | 0.16 | % | | | 10,908 | | | | 6 | | | | 0.22 | % | | | 9,260 | | | | 6 | | | | 0.26 | % |
FHLB advances and other borrowings | | | 163,908 | | | | 924 | | | | 2.27 | % | | | 165,402 | | | | 964 | | | | 2.34 | % | | | 140,177 | | | | 889 | | | | 2.52 | % | | | 148,963 | | | | 968 | | | | 2.58 | % | | | 149,215 | | | | 978 | | | | 2.63 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total interest-bearing liabilities | | | 1,278,597 | | | | 2,285 | | | | 0.72 | % | | | 1,267,471 | | | | 2,387 | | | | 0.76 | % | | | 1,247,093 | | | | 2,772 | | | | 0.88 | % | | | 1,247,646 | | | | 3,018 | | | | 0.96 | % | | | 1,247,230 | | | | 3,052 | | | | 0.98 | % |
| | | | | | | | | | | | | | | |
Noninterest-bearing deposits | | | 323,539 | | | | | | | | | | | | 305,468 | | | | | | | | | | | | 304,883 | | | | | | | | | | | | 290,468 | | | | | | | | | | | | 279,210 | | | | | | | | | |
Other liabilities | | | 23,159 | | | | | | | | | | | | 25,258 | | | | | | | | | | | | 24,991 | | | | | | | | | | | | 21,481 | | | | | | | | | | | | 24,562 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total noninterest-bearing liabilities | | | 346,698 | | | | | | | | | | | | 330,726 | | | | | | | | | | | | 329,874 | | | | | | | | | | | | 311,949 | | | | | | | | | | | | 303,772 | | | | | | | | | |
| | | | | | | | | | | | | | | |
Total liabilities | | | 1,625,295 | | | | | | | | | | | | 1,598,197 | | | | | | | | | | | | 1,576,967 | | | | | | | | | | | | 1,559,595 | | | | | | | | | | | | 1,551,002 | | | | | | | | | |
| | | | | | | | | | | | | | | |
Shareholders’ equity | | | 192,908 | | | | | | | | | | | | 186,987 | | | | | | | | | | | | 188,084 | | | | | | | | | | | | 184,361 | | | | | | | | | | | | 174,878 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Total liabilities and shareholders’ equity | | $ | 1,818,203 | | | | | | | | | | | $ | 1,785,184 | | | | | | | | | | | $ | 1,765,051 | | | | | | | | | | | $ | 1,743,956 | | | | | | | | | | | $ | 1,725,880 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Interest income to earning assets | | | | | | | | | | | 4.40 | % | | | | | | | | | | | 4.52 | % | | | | | | | | | | | 4.59 | % | | | | | | | | | | | 4.65 | % | | | | | | | | | | | 4.78 | % |
| | | | | | | | | | | | | | | |
Net interest spread | | | | | | | | | | | 3.68 | % | | | | | | | | | | | 3.76 | % | | | | | | | | | | | 3.71 | % | | | | | | | | | | | 3.69 | % | | | | | | | | | | | 3.80 | % |
Effect of noninterest-bearing sources | | | | | | | | | | | 0.17 | % | | | | | | | | | | | 0.17 | % | | | | | | | | | | | 0.20 | % | | | | | | | | | | | 0.21 | % | | | | | | | | | | | 0.21 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Net interest income/ margin on earning assets | | | | | | $ | 16,000 | | | | 3.85 | % | | | | | | $ | 16,045 | | | | 3.93 | % | | | | | | $ | 15,984 | | | | 3.91 | % | | | | | | $ | 15,717 | | | | 3.90 | % | | | | | | $ | 15,873 | | | | 4.01 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Tax equivalent adjustment | | | | | | $ | 81 | | | | 0.02 | % | | | | | | $ | 79 | | | | 0.02 | % | | | | | | $ | 66 | | | | 0.02 | % | | | | | | $ | 64 | | | | 0.02 | % | | | | | | $ | 74 | | | | 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. |
13
Bryn Mawr Bank Corporation
Average Balances and Tax Equivalent Income and Expense and Tax Equivalent Yields
For the Six Months ended June 30,
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | 2012 | | | 2011 | |
| (dollars in thousands) | | Average
Balance | | | Interest
Income/
Expense | | | Average
Rates
Earned/
Paid | | | Average
Balance | | | Interest
Income/
Expense | | | Average
Rates
Earned/
Paid | |
| | | | | | |
Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing deposits with other banks | | $ | 47,939 | | | | 52 | | | | 0.22 | % | | $ | 47,180 | | | $ | 178 | | | | 0.76 | % |
Federal funds sold | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | % |
Money market funds | | | 205 | | | | — | | | | | % | | | 197 | | | | 1 | | | | 1.02 | % |
Investment securities available for sale: | | | | | | | | | | | | | | | | | | | | | | | | |
Taxable | | | 299,422 | | | | 2,153 | | | | 1.45 | % | | | 286,260 | | | | 2,602 | | | | 1.83 | % |
Tax-exempt | | | 11,835 | | | | 116 | | | | 1.97 | % | | | 15,326 | | | | 269 | | | | 3.54 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Investment securities available for sale | | | 311,257 | | | | 2,269 | | | | 1.47 | % | | | 301,586 | | | | 2,871 | | | | 1.92 | % |
| | | | | | |
Loans and leases * | | | 1,296,786 | | | | 34,397 | | | | 5.33 | % | | | 1,226,422 | | | | 34,233 | | | | 5.63 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total interest earning assets | | | 1,656,187 | | | | 36,718 | | | | 4.46 | % | | | 1,575,385 | | | | 37,283 | | | | 4.77 | % |
| | | | | | |
Cash and due from banks | | | 11,899 | | | | | | | | | | | | 12,424 | | | | | | | | | |
Less allowance for loan and lease losses | | | (13,236 | ) | | | | | | | | | | | (10,835 | ) | | | | | | | | |
Other assets | | | 146,844 | | | | | | | | | | | | 134,412 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total assets | | $ | 1,801,694 | | | | | | | | | | | $ | 1,711,386 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Savings, NOW and market rate deposits | | $ | 786,597 | | | $ | 1,145 | | | | 0.29 | % | | $ | 707,611 | | | $ | 1,476 | | | | 0.42 | % |
IND / IDC deposits | | | 56,290 | | | | 96 | | | | 0.34 | % | | | 70,478 | | | | 123 | | | | 0.35 | % |
Wholesale deposits | | | 22,317 | | | | 48 | | | | 0.43 | % | | | 32,423 | | | | 162 | | | | 1.01 | % |
Time deposits | | | 207,158 | | | | 901 | | | | 0.87 | % | | | 239,626 | | | | 1,180 | | | | 0.99 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total interest-bearing deposits | | | 1,072,362 | | | | 2,190 | | | | 0.41 | % | | | 1,050,138 | | | | 2,941 | | | | 0.56 | % |
| | | | | | |
Subordinated debt | | | 22,500 | | | | 582 | | | | 5.20 | % | | | 22,500 | | | | 556 | | | | 4.98 | % |
Junior subordinated debentures | | | — | | | | — | | | | | % | | | 12,019 | | | | 543 | | | | 9.11 | % |
Short-term borrowings | | | 13,229 | | | | 10 | | | | 0.15 | % | | | 9,705 | | | | 12 | | | | 0.25 | % |
FHLB advances and other borrowings | | | 164,943 | | | | 1,890 | | | | 2.30 | % | | | 146,287 | | | | 1,819 | | | | 2.51 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total interest-bearing liabilities | | | 1,273,034 | | | | 4,672 | | | | 0.74 | % | | | 1,240,649 | | | | 5,871 | | | | 0.95 | % |
| | | | | | |
Noninterest-bearing deposits | | | 314,504 | | | | | | | | | | | | 277,264 | | | | | | | | | |
Other liabilities | | | 24,209 | | | | | | | | | | | | 23,914 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total noninterest-bearing liabilities | | | 338,713 | | | | | | | | | | | | 301,178 | | | | | | | | | |
| | | | | | |
Total liabilities | | | 1,611,747 | | | | | | | | | | | | 1,541,827 | | | | | | | | | |
| | | | | | |
Shareholders’ equity | | | 189,947 | | | | | | | | | | | | 169,559 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total liabilities and shareholders’ equity | | $ | 1,801,694 | | | | | | | | | | | $ | 1,711,386 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Interest income to earning assets | | | | | | | | | | | 4.46 | % | | | | | | | | | | | 4.77 | % |
| | | | | | |
Net interest spread | | | | | | | | | | | 3.72 | % | | | | | | | | | | | 3.82 | % |
Effect of noninterest-bearing sources | | | | | | | | | | | 0.17 | % | | | | | | | | | | | 0.20 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Net interest income/ margin on earning assets | | | | | | $ | 32,046 | | | | 3.89 | % | | | | | | $ | 31,412 | | | | 4.02 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Tax equivalent adjustment | | | | | | $ | 161 | | | | 0.02 | % | | | | | | $ | 207 | | | | 0.03 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
| * | 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. |
14
