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 Another Record Quarter,
Driven By Solid Loan Growth And Stable Interest Margin, Increases
Quarterly Dividend to $0.18, Wealth Assets Exceed $7 Billion
BRYN MAWR, Pa., October 24, 2013 - Bryn Mawr Bank Corporation (NASDAQ: BMTC), (the “Corporation”), parent of The Bryn Mawr Trust Company (the “Bank”), today reported net income of $6.4 million and diluted earnings per share of $0.47 for the three months ended September 30, 2013, as compared to net income of $5.4 million and diluted earnings per share of $0.41 for the same period in 2012. Net income for the three months ended September 30, 2013 included pre-tax due diligence and merger-related expenses of $328 thousand as compared to $316 thousand for the same period in 2012.
Significant factors contributing to the results for the three months ended September 30, 2013, as compared to the same period in 2012, included increases in net interest income and wealth management revenues, which were partially offset by decreases in gains on sale of residential mortgage loans and investment securities available for sale.
For the nine months ended September 30, 2013, net income of $18.0 million was a $2.2 million increase from the $15.8 million recorded for the same period in 2012. Diluted earnings per share for the nine months ended September 30, 2013 increased $0.13, to $1.33, from $1.20 for the same period last year.
Ted Peters, Chairman and Chief Executive Officer, commented, “We are pleased with the Corporation’s quarterly and year-to-date financial performance.” Mr. Peters continued, “We anticipate that continued strong loan growth in the fourth quarter, along with consistent revenue from our Wealth Management Division, will produce a strong finish to 2013.”
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On October 24, 2013, the Board of Directors of the Corporation declared a quarterly dividend of $0.18 per share, an increase of $0.01, or 5.9%, from the previous quarter’s dividend. The dividend is payable December 1, 2013 to shareholders of record as of November 6, 2013.
“We are very proud of our record for consistently paying dividends to our shareholders. The increase in our dividend is a reflection of the confidence which the Board has in the future growth and profitability of the Corporation”, said Mr. Peters.
SIGNIFICANT ITEMS OF NOTE
Results of Operations – 3rd Quarter 2013 Compared to the 3rd Quarter 2012
The overall results for the three months ended September 30, 2013, as compared to the same period in 2012, were affected by the November 2012 purchase of deposits, loans and a branch location from First Bank of Delaware (“FBD”).
| | • | | Net income of $6.4 million for the three months ended September 30, 2013 increased $976 thousand, or 18.0%, from $5.4 million for the same period in 2012. |
| | • | | Net interest income for the three months ended September 30, 2013 was $18.5 million, an increase of $2.6 million, or 16.2%, from $15.9 million for the same period in 2012. The increase in net interest income between the periods was largely the result of a $160.6 million, or 12.3%, increase in average portfolio loans. This increase was partially related to loans acquired from FBD, which totaled $62.9 million as of September 30, 2013. In addition, the prepayment of $22.5 million of subordinated debt during the third and fourth quarters of 2012 and $20.0 million of Federal Home Loan Bank (“FHLB”) borrowings in the first quarter of 2013, along with the 13 basis point decline in rate paid on deposits, contributed significantly to the $843 thousand decrease in interest expense for the three months ended September 30, 2013, as compared to the same period in 2012. |
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| | • | | Non-interest income for the three months ended September 30, 2013 decreased $861 thousand as compared to the same period in 2012. Contributing factors to this decrease include a $1.3 million decrease in the gain on sale of residential mortgage loans and a $416 thousand decline in gain on sale of investment securities available for sale. During the three months ended September 30, 2013, the volume of residential mortgage loans sold to the secondary market dropped significantly, with residential mortgages sold totaling $17.8 million, as compared to $55.0 million during the same period in 2012. While new originations of residential mortgage loans for the 3rd quarter of 2013 totaled $40.4 million, $16.4 million of the originations were jumbo residential mortgage loans which were retained in the portfolio. Partially offsetting these decreases was a $642 thousand increase in revenue from wealth management services for the three months ended September 30, 2013 as compared to the same period in 2012. Wealth Management Division assets under management, administration, supervision and brokerage as of September 30, 2013 were $7.1 billion, an increase of $600 million, or 9.3%, from September 30, 2012. Organic growth due to the success of the division’s strategic initiatives was supplemented by market appreciation and other new business between the dates. |
| | • | | Non-interest expense for the three months ended September 30, 2013 increased $434 thousand, to $19.3 million, as compared to $18.9 million for the same period in 2012. Contributing to this increase were a $302 thousand increase in salaries and benefits, a $158 thousand increase in occupancy costs and a $233 thousand increase in other operating expenses between the periods. Salaries and benefits increased primarily as a result of the addition of the branch and lending staff from FBD and the new personnel for our newly-opened full-service branch in Bala Cynwyd, Pennsylvania, which opened at the end of 2012, as well as annual salary increases. Partially offsetting these new personnel costs was the decrease in incentives paid to the residential mortgage originators and other factors. The increased occupancy costs were also related to the additions of FBD and our new branch Bala Cynwyd branch. Decreases in impairment and amortization of mortgage servicing rights totaling $128 thousand, along with the absence of the $188 thousand of early extinguishment of debt expenses, between the periods, partially offset the salary, benefits and occupancy cost increases. |
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| | • | | The tax-equivalent net interest margin of 4.05% for the three months ended September 30, 2013 was a 27 basis point increase from the 3.78% tax-equivalent net interest margin for the same period in 2012. The increase was the result of a $139.6 million increase in average interest-earning assets, partially offset by a $55.2 million increase in average interest-bearing liabilities between the periods. The tax-equivalent yield earned on average interest-earning assets increased by 5 basis points between periods, while the tax-equivalent rate paid on average interest-bearing liabilities dropped by 28 basis points. The tax-equivalent yield earned on investment securities available for sale increased 14 basis points between periods as rising interest rates caused a slow-down in prepayments of mortgage-related securities. This yield increase was partially offset by a 13 basis point decline in the tax-equivalent yield on portfolio loans. The significant reduction in rate paid on interest-bearing liabilities was related to the prepayment of $22.5 million of subordinated debt during the third and fourth quarters of 2012, as well as the prepayment of $20.0 million of Federal Home Loan Bank (“FHLB”) advances during the first quarter of 2013. Supplementing these reductions in borrowing costs was a 13 basis point drop in rates paid on interest-bearing deposits, which experienced a $78.0 million increase in average balances for the three months ended September 30, 2013, as compared to the same period in 2012. |
| | • | | Nonperforming loans and leases of $10.6 million as of September 30, 2013 were 0.71% of total portfolio loans and leases, as compared $14.8 million, or 1.06% of total portfolio loans and leases as of December 31, 2012. This $4.2 million decrease in nonperforming loans was concentrated in the construction, commercial and industrial and home equity segments of the portfolio and was partially the result of $1.8 million of charge-offs of impaired loans, as well as additions of $566 thousand to other real estate owned related to three residential properties. For the three months ended September 30, 2013, the Corporation recorded net loan and lease charge-offs of $376 thousand, as compared to $502 thousand for the same period in 2012. The provision for loan and lease losses for the three month period ended September 30, 2013 was $959 thousand, as compared to $1.0 million for the same period in 2012. |
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Results of Operations – 3rd Quarter 2013 Compared to the 2nd Quarter 2013
| | • | | Net income of $6.4 million for the three months ended September 30, 2013 increased $149 thousand, or 2.4%, from $6.3 million for the three months ended June 30, 2013. |
| | • | | Net interest income for the three months ended September 30, 2013 was $18.5 million, an increase of $610 thousand, or 3.4%, from $17.9 million for the three months ended June 30, 2013. The increase in net interest income between the periods was largely the result of a $36.3 million, or 2.5%, increase in average portfolio loans, partially offset by a 5 basis point decrease in the tax-equivalent yield earned on loans and leases. In addition, the tax-equivalent yield earned on investment securities available for sale increased from 1.22% for the 2nd quarter of 2013 to 1.40% for the 3rd quarter of 2013 as rising interest rates have slowed the rate of prepayments of mortgage-related securities. Also contributing to the increase in net interest income between the 2nd and 3rd quarters of 2013 was a $5.2 million decrease in average interest- bearing liabilities between periods. |
| | • | | Non-interest income for the three months ended September 30, 2013 decreased $1.6 million as compared to the three months ended June 30, 2013. Factors contributing to this decrease included a $914 thousand decrease in the gain on sale of residential mortgage loans and a $459 thousand decline in revenue from wealth management services. During the three months ended September 30, 2013, the volume of residential mortgage loans sold dropped significantly, from $46.6 million for the three months ended June 30, 2013, to $17.8 million for the quarter ended September 30, 2013. Rising interest rates played a significant role in this decline, as fewer borrowers refinanced mortgage loans. In addition, $16.4 million of the $40.4 million of residential mortgage loans originated in the 3rd quarter of 2013 were jumbo mortgage loans which were retained in the portfolio. The 5.1% decrease in revenue from wealth management services was primarily related to the tax-related revenue recorded in the 2nd quarter of 2013, which did not recur in the 3rd quarter of 2013. Wealth Management Division assets under management, administration, supervision and brokerage as of September 30, 2013 grew to $7.1 billion, an increase of $228 million, or 3.3%, from June 30, 2013. |
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| | • | | Non-interest expense for the three months ended September 30, 2013 decreased $1.2 million, to $19.3 million, as compared to $20.5 million for the three months ended June 30, 2013. The decrease between the periods was related to decreases of $316 thousand, $301 thousand and $360 thousand in employee benefits, furniture, fixtures and equipment expense, and due diligence and merger-related expenses, respectively. The reduction in employee benefits expense was related to, among other things, the annual renewal of the Corporation’s medical benefits plan, in which more employees chose to enroll in the lower-cost, high-deductible health plan. The decrease in furniture, fixtures and equipment expense returned the category to a more stable level, as some of the higher computer software and hardware costs recorded in the 2nd quarter of 2013 did not recur in the 3rd quarter of 2013. The decrease in due diligence and merger-related expenses reflected the wind-down of certain merger-related conversion costs associated with the acquisition of Davidson Trust Company as well as the termination, on August 8, 2013, of the merger with MidCoast Community Bancorp. |
| | • | | The tax-equivalent net interest margin of 4.05% for the three months ended September 30, 2013 was a 7 basis point increase from the 3.98% tax-equivalent net interest margin for the three months ended June 30, 2013. The increase between periods was primarily the result of a $36.3 million increase in average loans and leases, partially offset by a $24.4 million decrease in average interest-earning deposits with other banks. The resulting 6 basis point increase in tax-equivalent yield earned on interest-earning assets occurred because of the disparity between the yield earned on interest-earning deposits with other banks and that earned on loans and leases. |
| | • | | Nonperforming loans and leases of $10.6 million as of September 30, 2013 were 0.71% of total portfolio loans and leases, as compared $10.5 million, or 0.73% of total portfolio loans and leases as of June 30, 2013. For the three months ended September 30, 2013, the Corporation recorded net loan and lease charge-offs of $376 thousand, a significant |
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| | improvement from the $1.0 million net loan and lease charge-offs recorded in the 2nd quarter of 2013. The provision for loan and lease losses decreased slightly, to $959 thousand, for the three months ended September 30, 2013, as compared to $1.0 million in the previous quarter. Although the level of net loan and lease charge-offs during the quarter declined substantially, the $69.1 million growth in the loan portfolio necessitated this level of provision for loan and lease losses. |
Financial Condition – September 30, 2013 Compared to December 31, 2012
| | • | | Deposits of $1.55 billion, as of September 30, 2013, decreased $84.0 million from December 31, 2012. The 5.1% decrease was largely related to a $73.5 million decrease in time deposits between the dates. The Corporation has continued its planned run-off of its higher-rate certificates of deposit. |
| | • | | The allowance for loan and lease losses as of September 30, 2013 was $15.0 million, or 1.00% of portfolio loans as compared to $14.4 million, or 1.03% of portfolio loans and leases, as of December 31, 2012. |
| | • | | The capital ratios for the Bank and the Corporation, as shown in the table at page 17 below, indicate levels well above the regulatory minimum to be considered “well capitalized.” Additionally, the tangible equity ratios for both the Bank and the Corporation have improved from their December 31, 2012 levels of 7.72% and 7.60%, to 8.32% and 8.30%, respectively, at September 30, 2013. These improvements were primarily the result of increases in retained earnings and issuance of common stock, partially offset by nominal growth in total assets. |
| | • | | Total assets as of September 30, 2013 totaled $2.06 billion, an increase of $23.1 million from December 31, 2012. |
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| | • | | Total portfolio loans and leases of $1.50 billion as of September 30, 2013 increased by $101.6 million from December 31, 2012, with commercial mortgages, commercial and industrial loans, and construction loans comprising the majority of the increase. |
EARNINGS CONFERENCE CALL
The Corporation will hold an earnings conference call at 8:30 am ET on Friday, October 25, 2013. Interested parties may participate by calling 1-888-317-6016. A taped replay of the conference call will be available one hour after the conclusion of the call and will remain available through 9:00 a.m. ET on Monday, November 11, 2013. The number to call for the taped replay is 1-877-344-7529 and the conference number is 10030506.
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://services.choruscall.com/links/bmtc131025.html. An online archive of the webcast will be available within one hour of the conclusion of the call. The Corporation has also recently expanded its Investor Relations website to include added resources and information for shareholders and interested investors. Interested parties are encouraged to utilize the expanded resources of the site for more information on Bryn Mawr Bank Corporation.
FORWARD LOOKING STATEMENTS AND SAFE HARBOR
This press release contains statements which, to the extent that they are not recitations of historical fact may constitute forward-looking statements for purposes of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. Such forward-looking statements may include financial and other projections as well as statements regarding the Corporation’s future plans, objectives, performance, revenues, growth, profits, operating expenses or the Corporation’s underlying assumptions. The words “may,” “would,” “should,” “could,” “will,” “likely,” “possibly,” “expect,” “anticipate,” “intend,” “estimate,” “target,” “potentially,” “probably,” “outlook,” “predict,” “contemplate,” “continue,” “plan,” “forecast,” “project,” “are optimistic,” “are looking,” “are looking forward” and “believe” or other similar words and phrases may identify forward-looking statements. Persons reading this press release are cautioned that such statements are only predictions, and that the Corporation’s actual future results or performance may be materially different.
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Such forward-looking statements involve known and unknown risks and uncertainties. A number of factors, many of which are beyond the Corporation’s control, could cause our actual results, events or developments, or industry results, to be materially different from any future results, events or developments expressed, implied or anticipated by such forward-looking statements, and so our business and financial condition and results of operations could be materially and adversely affected. Such factors include, among others, our need for capital, our ability to control operating costs and expenses, and to manage loan and lease delinquency rates; the credit risks of lending activities and overall quality of the composition of our loan, lease and securities portfolio; the impact of economic conditions, consumer and business spending habits, and real estate market conditions on our business and in our market area; changes in the levels of general interest rates, deposit interest rates, or net interest margin and funding sources; changes in banking regulations and policies and the possibility that any banking agency approvals we might require for certain activities will not be obtained in a timely manner or at all or will be conditioned in a manner that would impair our ability to implement our business plans; changes in accounting policies and practices; the inability of key third-party providers to perform their obligations to us; our ability to attract and retain key personnel; competition in our marketplace; war or terrorist activities; material differences in the actual financial results, cost savings and revenue enhancements associated with our acquisitions; and other factors as described in our securities filings. All forward-looking statements and information set forth herein are based on Management’s current beliefs and assumptions as of the date hereof and speak only as of the date they are made. The Corporation does not undertake to update forward-looking statements.
For a complete discussion of the assumptions, risks and uncertainties related to our business, you are encouraged to review our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K, as well as any changes in risk factors that we may identify in our quarterly or other reports filed with the SEC.
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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 | |
| | | September 30,
2013 | | | June 30,
2013 | | | March 31,
2013 | | | December 31,
2012 | | | September 30,
2012 | |
Interest income | | $ | 19,820 | | | $ | 19,217 | | | $ | 18,855 | | | $ | 18,682 | | | $ | 18,081 | |
Interest expense | | | 1,287 | | | | 1,294 | | | | 1,446 | | | | 1,786 | | | | 2,130 | |
| | | | | | | | | | | | | | | | | | | | |
Net interest income | | | 18,533 | | | | 17,923 | | | | 17,409 | | | | 16,896 | | | | 15,951 | |
Provision for loan and lease losses | | | 959 | | | | 1,000 | | | | 804 | | | | 1,000 | | | | 1,000 | |
| | | | | | | | | | | | | | | | | | | | |
Net interest income after provision for loan and lease losses | | | 17,574 | | | | 16,923 | | | | 16,605 | | | | 15,896 | | | | 14,951 | |
| | | | | |
Fees for wealth management services | | | 8,635 | | | | 9,094 | | | | 8,349 | | | | 8,365 | | | | 7,993 | |
Loan servicing and other fees | | | 481 | | | | 448 | | | | 451 | | | | 473 | | | | 432 | |
Service charges on deposits | | | 627 | | | | 596 | | | | 584 | | | | 654 | | | | 634 | |
Net gain on sale of residential mortgage loans | | | 578 | | | | 1,492 | | | | 1,518 | | | | 2,424 | | | | 1,837 | |
Net gain on sale of invertment securities available for sale | | | — | | | | — | | | | 2 | | | | 283 | | | | 416 | |
Net loss on sale of other real estate owned | | | (1 | ) | | | (141 | ) | | | (52 | ) | | | — | | | | (45 | ) |
Bank owned life insurance income | | | 72 | | | | 85 | | | | 113 | | | | 98 | | | | 108 | |
Other operating income | | | 995 | | | | 1,369 | | | | 825 | | | | 873 | | | | 873 | |
| | | | | | | | | | | | | | | | | | | | |
Non-interest income | | | 11,387 | | | | 12,943 | | | | 11,790 | | | | 13,170 | | | | 12,248 | |
| | | | | |
Salaries and wages | | | 9,012 | | | | 9,086 | | | | 8,810 | | | | 8,848 | | | | 8,703 | |
Employee benefits | | | 1,896 | | | | 2,212 | | | | 2,325 | | | | 2,041 | | | | 1,903 | |
Net gain on curtailment of nonqualified pension plan | | | — | | | | (120 | ) | | | (570 | ) | | | — | | | | — | |
Occupancy and bank premises | | | 1,646 | | | | 1,728 | | | | 1,750 | | | | 1,616 | | | | 1,488 | |
Furniture fixtures and equipment | | | 920 | | | | 1,221 | | | | 819 | | | | 961 | | | | 935 | |
Advertising | | | 303 | | | | 380 | | | | 412 | | | | 363 | | | | 267 | |
Net impairment (recovery) of mortgage servicing rights | | | 33 | | | | (91 | ) | | | 71 | | | | 81 | | | | 105 | |
Amortization of mortgage servicing rights | | | 187 | | | | 218 | | | | 212 | | | | 248 | | | | 243 | |
Amortization of intangible assets | | | 657 | | | | 660 | | | | 661 | | | | 673 | | | | 669 | |
FDIC insurance | | | 271 | | | | 275 | | | | 258 | | | | 255 | | | | 262 | |
Due diligence and merger-related expenses | | | 328 | | | | 688 | | | | 714 | | | | 1,190 | | | | 316 | |
Professional fees | | | 636 | | | | 664 | | | | 575 | | | | 1,031 | | | | 609 | |
Early extinguishment of debt - costs and premiums | | | — | | | | — | | | | 347 | | | | 338 | | | | 188 | |
Other operating expenses | | | 3,434 | | | | 3,603 | | | | 3,851 | | | | 3,444 | | | | 3,201 | |
| | | | | | | | | | | | | | | | | | | | |
Non-interest expense | | | 19,323 | | | | 20,524 | | | | 20,235 | | | | 21,089 | | | | 18,889 | |
| | | | | |
Income before income taxes | | | 9,638 | | | | 9,342 | | | | 8,160 | | | | 7,977 | | | | 8,310 | |
Income tax expense | | | 3,237 | | | | 3,090 | | | | 2,840 | | | | 2,673 | | | | 2,885 | |
| | | | | | | | | | | | | | | | | | | | |
Net income | | $ | 6,401 | | | $ | 6,252 | | | $ | 5,320 | | | $ | 5,304 | | | $ | 5,425 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Per share data: | | | | | | | | | | | | | | | | | | | | |
Weighted average shares outstanding | | | 13,336,799 | | | | 13,280,624 | | | | 13,205,538 | | | | 13,157,295 | | | | 13,149,050 | |
Dilutive common shares | | | 275,343 | | | | 227,150 | | | | 230,413 | | | | 205,545 | | | | 146,377 | |
| | | | | | | | | | | | | | | | | | | | |
Adjusted weighted average dilutive shares | | | 13,612,142 | | | | 13,507,774 | | | | 13,435,951 | | | | 13,362,840 | | | | 13,295,427 | |
| | | | | | | | | | | | | | | | | | | | |
Basic earnings per common share | | $ | 0.48 | | | $ | 0.47 | | | $ | 0.40 | | | $ | 0.40 | | | $ | 0.41 | |
Diluted earnings per common share | | $ | 0.47 | | | $ | 0.46 | | | $ | 0.40 | | | $ | 0.40 | | | $ | 0.41 | |
Dividend declared per share | | $ | 0.17 | | | $ | 0.17 | | | $ | 0.17 | | | $ | 0.16 | | | $ | 0.16 | |
Effective tax rate | | | 33.6 | % | | | 33.1 | % | | | 34.8 | % | | | 33.5 | % | | | 34.7 | % |
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Bryn Mawr Bank Corporation
Consolidated Statements of Income - (unaudited)
(dollars in thousands, except per share data)
| | | | | | | | |
| | | For The Nine Months Ended September 30, | |
| | | 2013 | | | 2012 | |
Interest income | | $ | 57,892 | | | $ | 54,641 | |
Interest expense | | | 4,027 | | | | 6,802 | |
| | | | | | | | |
Net interest income | | | 53,865 | | | | 47,839 | |
Provision for loan and lease losses | | | 2,763 | | | | 3,003 | |
| | | | | | | | |
Net interest income after provision for loan and lease losses | | | 51,102 | | | | 44,836 | |
Fees for wealth management services | | | 26,078 | | | | 21,433 | |
Loan servicing and other fees | | | 1,380 | | | | 1,303 | |
Service charges on deposits | | | 1,807 | | | | 1,823 | |
Net gain on sale of residential mortgage loans | | | 3,588 | | | | 4,311 | |
Net gain on sale of investment securities available for sale | | | 2 | | | | 1,132 | |
Bank owned life insurance income | | | 270 | | | | 330 | |
Net loss on sale of other real estate owned | | | (194 | ) | | | (86 | ) |
Other operating income | | | 3,189 | | | | 2,970 | |
| | | | | | | | |
Non-interest income | | | 36,120 | | | | 33,216 | |
Salaries and wages | | | 26,908 | | | | 24,283 | |
Employee benefits | | | 6,433 | | | | 6,086 | |
Net gain on curtailment of nonqualified pension plan | | | (690 | ) | | | — | |
Occupancy and bank premises | | | 5,124 | | | | 4,258 | |
Furniture fixtures and equipment | | | 2,960 | | | | 2,766 | |
Advertising | | | 1,095 | | | | 946 | |
Net recovery of mortgage servicing rights | | | 13 | | | | 82 | |
Amortization of mortgage servicing rights | | | 617 | | | | 718 | |
Amortization of intangible assets | | | 1,978 | | | | 1,738 | |
FDIC insurance | | | 804 | | | | 715 | |
Due diligence and merger-related expenses | | | 1,730 | | | | 1,439 | |
Professional fees | | | 1,875 | | | | 1,837 | |
Early extinguishment of debt - costs and premiums | | | 347 | | | | — | |
Other operating expenses | | | 10,888 | | | | 8,944 | |
| | | | | | | | |
Non-interest expense | | | 60,082 | | | | 53,812 | |
Income before income taxes | | | 27,140 | | | | 24,240 | |
Income tax expense | | | 9,167 | | | | 8,397 | |
| | | | | | | | |
Net income | | $ | 17,973 | | | $ | 15,843 | |
| | | | | | | | |
Per share data: | | | | | | | | |
Weighted average shares outstanding | | | 13,274,801 | | | | 13,067,551 | |
Dilutive common shares | | | 244,302 | | | | 133,799 | |
| | | | | | | | |
Adjusted weighted average shares | | | 13,519,103 | | | | 13,201,350 | |
| | | | | | | | |
Basic earnings per common share | | $ | 1.35 | | | $ | 1.21 | |
Diluted earnings per common share | | $ | 1.33 | | | $ | 1.20 | |
Dividend declared per share | | $ | 0.51 | | | $ | 0.48 | |
Effective tax rate | | | 33.8 | % | | | 34.6 | % |
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Bryn Mawr Bank Corporation
Consolidated Balance Sheets - (unaudited)
(dollars in thousands)
| | | | | | | | | | | | | | | | | | | | |
| | | September 30,
2013 | | | June 30,
2013 | | | March 31,
2013 | | | December 31,
2012 | | | September 30,
2012 | |
Assets | | | | | | | | | | | | | | | | | | | | |
Interest-bearing deposits with banks | | $ | 71,203 | | | $ | 95,903 | | | $ | 136,534 | | | $ | 159,483 | | | $ | 23,559 | |
Investment securities - available for sale | | | 319,917 | | | | 322,961 | | | | 327,799 | | | | 316,614 | | | | 316,644 | |
Investment securities - trading | | | 2,357 | | | | 2,180 | | | | 2,168 | | | | 1,447 | | | | 1,399 | |
Loans held for sale | | | 1,284 | | | | 2,207 | | | | 3,233 | | | | 3,412 | | | | 3,420 | |
Portfolio loans: | | | | | | | | | | | | | | | | | | | | |
Consumer | | | 17,572 | | | | 18,404 | | | | 18,725 | | | | 17,666 | | | | 17,342 | |
Commercial & industrial | | | 303,259 | | | | 296,073 | | | | 293,171 | | | | 291,620 | | | | 274,351 | |
Commercial mortgages | | | 622,771 | | | | 587,261 | | | | 563,431 | | | | 546,358 | | | | 472,354 | |
Construction | | | 39,055 | | | | 28,718 | | | | 26,135 | | | | 26,908 | | | | 22,161 | |
Residential mortgages | | | 291,645 | | | | 280,687 | | | | 284,819 | | | | 288,212 | | | | 301,054 | |
Home equity lines & loans | | | 187,634 | | | | 183,006 | | | | 183,984 | | | | 194,861 | | | | 195,315 | |
Leases | | | 38,079 | | | | 36,770 | | | | 34,974 | | | | 32,831 | | | | 31,136 | |
| | | | | | | | | | | | | | | | | | | | |
Total portfolio loans and leases | | | 1,500,015 | | | | 1,430,919 | | | | 1,405,239 | | | | 1,398,456 | | | | 1,313,713 | |
Earning assets | | | 1,894,776 | | | | 1,854,170 | | | | 1,874,973 | | | | 1,879,412 | | | | 1,658,735 | |
Cash and due from banks | | | 24,958 | | | | 14,208 | | | | 12,013 | | | | 16,203 | | | | 13,526 | |
Allowance for loan and lease losses | | | (15,027 | ) | | | (14,444 | ) | | | (14,447 | ) | | | (14,424 | ) | | | (13,638 | ) |
Premises and equipment | | | 31,436 | | | | 30,947 | | | | 31,072 | | | | 31,170 | | | | 29,238 | |
Accrued interest receivable | | | 5,703 | | | | 6,097 | | | | 6,168 | | | | 5,955 | | | | 5,963 | |
Mortgage servicing rights | | | 4,744 | | | | 4,790 | | | | 4,593 | | | | 4,491 | | | | 4,257 | |
Goodwill | | | 32,843 | | | | 32,843 | | | | 32,897 | | | | 32,897 | | | | 29,588 | |
Other intangible assets | | | 20,020 | | | | 20,677 | | | | 21,337 | | | | 21,998 | | | | 22,351 | |
Bank owned life insurance | | | 20,132 | | | | 20,060 | | | | 19,975 | | | | 19,862 | | | | 19,765 | |
FHLB stock | | | 12,590 | | | | 13,028 | | | | 10,663 | | | | 10,761 | | | | 10,717 | |
Deferred income taxes | | | 11,955 | | | | 11,788 | | | | 10,854 | | | | 12,303 | | | | 11,478 | |
Other investments | | | 4,337 | | | | 4,378 | | | | 4,347 | | | | 4,346 | | | | 4,438 | |
Other assets | | | 10,506 | | | | 10,980 | | | | 15,718 | | | | 10,911 | | | | 18,111 | |
| | | | | | | | | | | | | | | | | | | | |
Total assets | | $ | 2,058,973 | | | $ | 2,009,522 | | | $ | 2,030,163 | | | $ | 2,035,885 | | | $ | 1,814,529 | |
| | | | | | | | | | | | | | | | | | | | |
Liabilities and shareholders’ equity | | | | | | | | | | | | | | | | | | | | |
Interest-bearing deposits: | | | | | | | | | | | | | | | | | | | | |
Interest-bearing checking | | $ | 244,826 | | | $ | 262,316 | | | $ | 263,820 | | | $ | 270,279 | | | $ | 226,206 | |
Money market | | | 548,011 | | | | 551,750 | | | | 588,478 | | | | 559,470 | | | | 493,829 | |
Savings | | | 137,431 | | | | 136,307 | | | | 135,124 | | | | 129,091 | | | | 132,402 | |
Wholesale non-maturity deposits | | �� | 57,195 | | | | 30,315 | | | | 32,879 | | | | 45,162 | | | | 37,458 | |
Wholesale time deposits | | | 23,127 | | | | 12,139 | | | | 11,325 | | | | 12,421 | | | | 9,942 | |
Time deposits | | | 145,119 | | | | 161,146 | | | | 171,575 | | | | 218,586 | | | | 171,498 | |
| | | | | | | | | | | | | | | | | | | | |
Total interest-bearing deposits | | | 1,155,709 | | | | 1,153,973 | | | | 1,203,201 | | | | 1,235,009 | | | | 1,071,335 | |
Non-interest-bearing deposits | | | 394,947 | | | | 395,742 | | | | 407,453 | | | | 399,673 | | | | 327,214 | |
| | | | | | | | | | | | | | | | | | | | |
Total deposits | | | 1,550,656 | | | | 1,549,715 | | | | 1,610,654 | | | | 1,634,682 | | | | 1,398,549 | |
Long-term FHLB advances and other borrowings | | | 191,645 | | | | 152,642 | | | | 148,636 | | | | 161,315 | | | | 155,416 | |
Short-term borrowings | | | 75,588 | | | | 71,768 | | | | 38,362 | | | | 9,402 | | | | 19,029 | |
Subordinated debentures | | | — | | | | — | | | | — | | | | — | | | | 15,000 | |
Other liabilities | | | 23,323 | | | | 22,929 | | | | 22,343 | | | | 26,921 | | | | 25,280 | |
Shareholders’ equity | | | 217,761 | | | | 212,468 | | | | 210,168 | | | | 203,565 | | | | 201,255 | |
| | | | | | | | | | | | | | | | | | | | |
Total liabilities and shareholders’ equity | | $ | 2,058,973 | | | $ | 2,009,522 | | | $ | 2,030,163 | | | $ | 2,035,885 | | | $ | 1,814,529 | |
| | | | | | | | | | | | | | | | | | | | |
12
Bryn Mawr Bank Corporation
Consolidated Quarterly Average Balance Sheets - (unaudited)
(dollars in thousands)
| | | | | | | | | | | | | | | | | | | | |
| | | For The Three Months Ended | |
| | | September 30, | | | June 30, | | | March 31, | | | December 31, | | | September 30, | |
| | | 2013 | | | 2013 | | | 2013 | | | 2012 | | | 2012 | |
Assets | | | | | | | | | | | | | | | | | | | | |
Interest-bearing deposits with banks | | $ | 35,589 | | | $ | 59,981 | | | $ | 117,372 | | | $ | 91,234 | | | $ | 53,767 | |
Investment securities - available for sale | | | 324,418 | | | | 325,729 | | | | 323,247 | | | | 311,372 | | | | 328,051 | |
Investment securities - trading | | | 2,182 | | | | 2,168 | | | | 1,695 | | | | 1,400 | | | | 1,343 | |
Loans held for sale | | | 867 | | | | 2,233 | | | | 2,645 | | | | 4,047 | | | | 2,972 | |
Portfolio loans and leases | | | 1,463,492 | | | | 1,425,836 | | | | 1,401,038 | | | | 1,341,826 | | | | 1,300,811 | |
| | | | | | | | | | | | | | | | | | | | |
Earning assets | | | 1,826,548 | | | | 1,815,947 | | | | 1,845,997 | | | | 1,749,879 | | | | 1,686,944 | |
Cash and due from banks | | | 12,497 | | | | 12,876 | | | | 13,287 | | | | 14,817 | | | | 12,922 | |
Allowance for loan and lease losses | | | (14,653 | ) | | | (14,625 | ) | | | (14,693 | ) | | | (14,063 | ) | | | (13,337 | ) |
Premises and equipment | | | 31,216 | | | | 31,254 | | | | 31,415 | | | | 30,189 | | | | 29,077 | |
Goodwill | | | 32,843 | | | | 32,896 | | | | 32,897 | | | | 29,642 | | | | 29,751 | |
Other intangible assets | | | 20,400 | | | | 21,055 | | | | 21,725 | | | | 22,084 | | | | 22,580 | |
Bank owned life insurance | | | 20,086 | | | | 20,005 | | | | 19,905 | | | | 19,800 | | | | 19,695 | |
FHLB stock | | | 12,809 | | | | 10,430 | | | | 10,544 | | | | 10,572 | | | | 10,717 | |
Deferred income taxes | | | 11,946 | | | | 10,997 | | | | 12,183 | | | | 11,577 | | | | 11,179 | |
Other assets | | | 21,904 | | | | 25,296 | | | | 21,294 | | | | 23,800 | | | | 23,275 | |
| | | | | | | | | | | | | | | | | | | | |
Total assets | | $ | 1,975,596 | | | $ | 1,966,131 | | | $ | 1,994,554 | | | $ | 1,898,297 | | | $ | 1,832,803 | |
| | | | | | | | | | | | | | | | | | | | |
Liabilities and shareholders’ equity | | | | | | | | | | | | | | | | | | | | |
Interest-bearing deposits: | | | | | | | | | | | | | | | | | | | | |
Interest-bearing checking | | $ | 249,982 | | | $ | 263,842 | | | $ | 266,900 | | | $ | 241,730 | | | $ | 229,853 | |
Money market | | | 559,911 | | | | 571,327 | | | | 576,422 | | | | 516,174 | | | | 486,798 | |
Savings | | | 135,070 | | | | 134,485 | | | | 132,142 | | | | 132,725 | | | | 133,315 | |
Wholesale non-maturity deposits | | | 47,804 | | | | 31,124 | | | | 38,683 | | | | 38,932 | | | | 35,956 | |
Wholesale time deposits | | | 10,911 | | | | 11,610 | | | | 11,495 | | | | 10,689 | | | | 13,809 | |
Time deposits | | | 152,788 | | | | 164,247 | | | | 190,937 | | | | 190,332 | | | | 178,711 | |
| | | | | | | | | | | | | | | | | | | | |
Total interest-bearing deposits | | | 1,156,466 | | | | 1,176,635 | | | | 1,216,579 | | | | 1,130,582 | | | | 1,078,442 | |
Non-interest bearing deposits | | | 402,292 | | | | 391,387 | | | | 386,881 | | | | 359,008 | | | | 330,179 | |
| | | | | | | | | | | | | | | | | | | | |
Total deposits | | | 1,558,758 | | | | 1,568,022 | | | | 1,603,460 | | | | 1,489,590 | | | | 1,408,621 | |
Long-term FHLB advances and other borrowings | | | 163,818 | | | | 150,578 | | | | 148,699 | | | | 159,559 | | | | 167,251 | |
Short-term borrowings | | | 14,995 | | | | 13,248 | | | | 11,978 | | | | 13,243 | | | | 13,273 | |
Subordinated debentures | | | — | | | | — | | | | — | | | | 7,283 | | | | 21,114 | |
Other liabilities | | | 24,904 | | | | 23,617 | | | | 26,123 | | | | 27,175 | | | | 25,354 | |
Shareholders’ equity | | | 213,121 | | | | 210,666 | | | | 204,294 | | | | 201,447 | | | | 197,190 | |
| | | | | | | | | | | | | | | | | | | | |
Total liabilities and shareholders’ equity | | $ | 1,975,596 | | | $ | 1,966,131 | | | $ | 1,994,554 | | | $ | 1,898,297 | | | $ | 1,832,803 | |
| | | | | | | | | | | | | | | | | | | | |
13
Bryn Mawr Bank Corporation
Consolidated Average Balance Sheets - (unaudited)
(dollars in thousands)
| | | | | | | | |
| | | For The Nine Months Ended September 30, | |
| | | 2013 | | | 2012 | |
Assets | | | | | | | | |
Interest bearing deposits with banks | | $ | 70,681 | | | $ | 50,033 | |
Investment securities - available for sale | | | 324,469 | | | | 317,932 | |
Investment securities - trading | | | 2,017 | | | | 1,442 | |
Loans held for sale | | | 1,909 | | | | 3,435 | |
Portfolio loans and leases | | | 1,430,351 | | | | 1,295,700 | |
| | | | | | | | |
Earning assets | | | 1,829,427 | | | | 1,668,542 | |
Cash and due from banks | | | 12,884 | | | | 12,242 | |
Allowance for loan and lease losses | | | (14,657 | ) | | | (13,270 | ) |
Premises and equipment | | | 31,294 | | | | 29,013 | |
Goodwill | | | 32,878 | | | | 26,890 | |
Intangible assets | | | 21,055 | | | | 20,611 | |
Bank owned life insurance | | | 19,999 | | | | 19,588 | |
FHLB stock | | | 11,760 | | | | 10,824 | |
Deferred income taxes | | | 11,708 | | | | 12,339 | |
Other assets | | | 22,344 | | | | 24,298 | |
| | | | | | | | |
Total assets | | $ | 1,978,692 | | | $ | 1,811,077 | |
| | | | | | | | |
Liabilities and shareholders’ equity | | | | | | | | |
Interest-bearing deposits: | | | | | | | | |
Interest-bearing checking | | $ | 260,180 | | | $ | 231,262 | |
Money market | | | 569,159 | | | | 443,654 | |
Savings | | | 133,910 | | | | 132,958 | |
Wholesale non-maturity deposits | | | 39,238 | | | | 49,462 | |
Wholesale time deposits | | | 11,337 | | | | 19,460 | |
Time deposits | | | 169,184 | | | | 197,607 | |
| | | | | | | | |
Total interest-bearing deposits | | | 1,183,008 | | | | 1,074,403 | |
Non-interest-bearing deposits | | | 393,576 | | | | 319,767 | |
| | | | | | | | |
Total deposits | | | 1,576,584 | | | | 1,394,170 | |
Long-term FHLB advances and other borrowings | | | 155,412 | | | | 165,717 | |
Short-term borrowings | | | 12,429 | | | | 13,244 | |
Subordinated debentures | | | — | | | | 22,035 | |
Other liabilities | | | 24,874 | | | | 24,508 | |
Shareholders’ equity | | | 209,393 | | | | 191,403 | |
| | | | | | | | |
Total liabilities and shareholders’ equity | | $ | 1,978,692 | | | $ | 1,811,077 | |
| | | | | | | | |
14
Bryn Mawr Bank Corporation
Consolidated Selected Financial Data - (unaudited)
(dollars in thousands, except per share data)
| | | | | | | | | | | | | | | | | | | | |
| | | For The Three Months Ended or As Of | |
| | | September 30,
2013 | | | June 30,
2013 | | | March 31,
2013 | | | December 31,
2012 | | | September 30,
2012 | |
Asset Quality Data | | | | | | | | | | | | | | | | | | | | |
Nonaccrual loans and leases | | $ | 10,613 | | | $ | 10,489 | | | $ | 12,098 | | | $ | 14,040 | | | $ | 13,846 | |
90 days or more past due loans, still accruing | | | — | | | | — | | | | 728 | | | | 728 | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Nonperforming loans and leases | | | 10,613 | | | | 10,489 | | | | 12,826 | | | | 14,768 | | | | 13,846 | |
Other real estate owned | | | 1,253 | | | | 1,205 | | | | 545 | | | | 906 | | | | 412 | |
| | | | | | | | | | | | | | | | | | | | |
Total nonperforming assets | | $ | 11,866 | | | $ | 11,694 | | | $ | 13,371 | | | $ | 15,674 | | | $ | 14,258 | |
| | | | | | | | | | | | | | | | | | | | |
Troubled debt restructurings included in nonperforming assets | | $ | 2,628 | | | $ | 2,869 | | | $ | 3,686 | | | $ | 3,106 | | | $ | 3,740 | |
Troubled debt restructurings in compliance with modified terms | | | 8,947 | | | | 8,157 | | | | 7,438 | | | | 8,008 | | | | 8,379 | |
| | | | | | | | | | | | | | | | | | | | |
Total troubled debt restructurings | | $ | 11,575 | | | $ | 11,026 | | | $ | 11,124 | | | $ | 11,114 | | | $ | 12,119 | |
Nonperforming loans and leases / portfolio loans & leases | | | 0.71 | % | | | 0.73 | % | | | 0.91 | % | | | 1.06 | % | | | 1.05 | % |
Nonperforming assets / total assets | | | 0.58 | % | | | 0.58 | % | | | 0.66 | % | | | 0.77 | % | | | 0.78 | % |
Net loan charge-offs / average loans (annualized) | | | 0.09 | % | | | 0.29 | % | | | 0.23 | % | | | 0.08 | % | | | 0.16 | % |
Net lease charge-offs (recoveries) / average leases (annualized) | | | 0.73 | % | | | 0.11 | % | | | -0.13 | % | | | -0.38 | % | | | -0.23 | % |
Net loan and lease charge-offs / average loans and leases (annualized) | | | 0.10 | % | | | 0.28 | % | | | 0.22 | % | | | 0.07 | % | | | 0.16 | % |
Delinquency rate* - Performing and nonperforming loans and leases 30 days or more past due | | | 0.68 | % | | | 0.73 | % | | | 1.23 | % | | | 1.02 | % | | | 1.01 | % |
Performing loans and leases - 30-89 days past due | | $ | 1,227 | | | $ | 2,328 | | | $ | 4,115 | | | $ | 2,053 | | | $ | 1,954 | |
Delinquency rate* - Performing loans and leases - 30-89 days past due | | | 0.08 | % | | | 0.16 | % | | | 0.29 | % | | | 0.15 | % | | | 0.15 | % |
| | | | | |
* to total loans and leases | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Changes in the allowance for loan and lease losses: | | | | | | | | | | | | | | | | | | | | |
Balance, beginning of period | | $ | 14,444 | | | $ | 14,447 | | | $ | 14,425 | | | $ | 13,638 | | | $ | 13,140 | |
Charge-offs | | | (501 | ) | | | (1,164 | ) | | | (830 | ) | | | (450 | ) | | | (618 | ) |
Recoveries | | | 125 | | | | 161 | | | | 48 | | | | 237 | | | | 116 | |
| | | | | | | | | | | | | | | | | | | | |
Net charge-offs | | | (376 | ) | | | (1,003 | ) | | | (782 | ) | | | (213 | ) | | | (502 | ) |
Provision for loan and lease losses | | | 959 | | | | 1,000 | | | | 804 | | | | 1,000 | | | | 1,000 | |
| | | | | | | | | | | | | | | | | | | | |
Balance, end of period | | $ | 15,027 | | | $ | 14,444 | | | $ | 14,447 | | | $ | 14,425 | | | $ | 13,638 | |
| | | | | | | | | | | | | | | | | | | | |
Allowance for loan and lease losses / loans and leases | | | 1.00 | % | | | 1.01 | % | | | 1.03 | % | | | 1.03 | % | | | 1.04 | % |
Allowance for loan and lease losses / nonperforming loans and leases | | | 141.6 | % | | | 137.7 | % | | | 112.6 | % | | | 97.7 | % | | | 98.5 | % |
15
Bryn Mawr Bank Corporation
Consolidated Selected Financial Data - (unaudited)
(dollars in thousands, except per share data)
| | | | | | | | | | | | | | | | | | | | |
| | | For The Three Months Ended or As Of | |
| | | September 30,
2013 | | | June 30,
2013 | | | March 31,
2013 | | | December 31,
2012 | | | September 30,
2012 | |
Selected ratios (annualized): | | | | | | | | | | | | | | | | | | | | |
Return on average assets | | | 1.29 | % | | | 1.28 | % | | | 1.08 | % | | | 1.11 | % | | | 1.18 | % |
Return on average shareholders’ equity | | | 11.92 | % | | | 11.90 | % | | | 10.56 | % | | | 10.47 | % | | | 10.93 | % |
Return on average tangible equity(2) | | | 15.89 | % | | | 16.00 | % | | | 14.42 | % | | | 14.09 | % | | | 14.89 | % |
Tax-equivalent yield on loans and leases | | | 5.08 | % | | | 5.13 | % | | | 5.16 | % | | | 5.24 | % | | | 5.21 | % |
Tax-equivalent yield on interest-earning assets | | | 4.33 | % | | | 4.27 | % | | | 4.16 | % | | | 4.27 | % | | | 4.28 | % |
Cost of interest-bearing funds | | | 0.38 | % | | | 0.39 | % | | | 0.43 | % | | | 0.54 | % | | | 0.66 | % |
Tax-equivalent net interest margin | | | 4.05 | % | | | 3.98 | % | | | 3.85 | % | | | 3.86 | % | | | 3.78 | % |
Book value per share | | $ | 16.07 | | | $ | 15.71 | | | $ | 15.57 | | | $ | 15.17 | | | $ | 15.02 | |
Tangible book value per share | | $ | 12.17 | | | $ | 11.75 | | | $ | 11.55 | | | $ | 11.08 | | | $ | 11.14 | |
Shares outstanding at end of period | | | 13,551,438 | | | | 13,528,078 | | | | 13,500,413 | | | | 13,414,552 | | | | 13,399,635 | |
Selected data: | | | | | | | | | | | | | | | | | | | | |
Mortgage loans originated | | $ | 40,426 | | | $ | 55,066 | | | $ | 65,105 | | | $ | 82,458 | | | $ | 64,455 | |
Residential mortgage loans sold - servicing retained | | $ | 17,768 | | | $ | 46,209 | | | $ | 51,414 | | | $ | 71,596 | | | $ | 54,992 | |
Residential mortgage loans sold - servicing released | | | — | | | | 347 | | | | 189 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Total residential mortgage loans sold | | $ | 17,768 | | | $ | 46,556 | | | $ | 51,603 | | | $ | 71,596 | | | $ | 54,992 | |
| | | | | | | | | | | | | | | | | | | | |
Yield on loans sold | | | 3.25 | % | | | 3.20 | % | | | 2.94 | % | | | 3.39 | % | | | 3.34 | % |
Residential mortgage loans serviced for others | | $ | 627,058 | | | $ | 623,498 | | | $ | 603,734 | | | $ | 595,317 | | | $ | 583,859 | |
Total wealth assets under management, administration, supervision and brokerage(1) | | $ | 7,082,926 | | | $ | 6,854,838 | | | $ | 6,987,974 | | | $ | 6,663,212 | | | $ | 6,482,835 | |
| | | | | | | | | | | | | | | | | | | | |
| (1) | Brokerage assets represent assets held at a registered broker dealer under a networking agreement. |
| (2) | Average tangible equity equals average shareholders’ equity minus average goodwill and average other intangible assets. |
| | | | | | | | |
| | | For The Nine Months
Ended September 30, | |
| | | 2013 | | | 2012 | |
Selected ratios (annualized): | | | | | | | | |
Return on average assets | | | 1.21 | % | | | 1.17 | % |
Return on average shareholders’ equity | | | 11.48 | % | | | 11.06 | % |
Return on average tangible equity(1) | | | 15.46 | % | | | 14.71 | % |
Tax-equivalent yield on loans and leases | | | 5.13 | % | | | 5.29 | % |
Tax-equivalent yield on interest-earning assets | | | 4.25 | % | | | 4.40 | % |
Cost of interest-bearing liabilities | | | 0.40 | % | | | 0.71 | % |
Tax-equivalent net interest margin | | | 3.96 | % | | | 3.85 | % |
Selected data: | | | | | | | | |
Residential mortgage loans originated | | $ | 160,597 | | | $ | 171,267 | |
Residential mortgage loans sold - servicing retained | | $ | 115,391 | | | $ | 129,756 | |
Residential mortgage loans sold - servicing released | | | 536 | | | | 3,461 | |
| | | | | | | | |
Total residential mortgage loans sold | | $ | 115,927 | | | $ | 133,217 | |
| | | | | | | | |
| (1) | Average tangible equity equals average shareholders’ equity minus average goodwill and average other intangible assets. |
16
Bryn Mawr Bank Corporation
Consolidated Selected Financial Data - (unaudited)
(dollars in thousands, except per share data)
| | | | | | | | | | | | | | | | | | | | | | | | |
Investment Portfolio - Available for Sale | | | As of September 30, 2013 | | | | As of December 31, 2012 | |
SECURITY DESCRIPTION | | Amortized
Cost | | | Fair Value | | | Net
Unrealized
Gain / (Loss) | | | Amortized
Cost | | | Fair Value | | | Net
Unrealized
Gain / (Loss) | |
U.S. Treasury securities | | $ | 102 | | | $ | 101 | | | $ | (1 | ) | | $ | — | | | $ | — | | | $ | — | |
Obligations of the U.S. Government and agencies | | | 92,128 | | | | 90,944 | | | | (1,184 | ) | | | 73,183 | | | | 73,872 | | | | 689 | |
State & political subdivisions | | | 40,273 | | | | 40,065 | | | | (208 | ) | | | 30,243 | | | | 30,384 | | | | 141 | |
Mortgage-backed securities | | | 123,161 | | | | 124,283 | | | | 1,122 | | | | 128,537 | | | | 131,826 | | | | 3,289 | |
Collateralized mortgage obligations | | | 47,412 | | | | 47,323 | | | | (89 | ) | | | 62,116 | | | | 62,703 | | | | 587 | |
Other debt securities | | | 2,400 | | | | 2,399 | | | | (1 | ) | | | 1,900 | | | | 1,900 | | | | —�� | |
Bond mutual funds | | | 11,456 | | | | 11,458 | | | | 2 | | | | 11,456 | | | | 11,527 | | | | 71 | |
Investment CDs | | | 1,211 | | | | 1,213 | | | | 2 | | | | 2,350 | | | | 2,364 | | | | 14 | |
Other investments | | | 1,887 | | | | 2,131 | | | | 244 | | | | 1,962 | | | | 2,038 | | | | 76 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total investment portfolio available for sale | | $ | 320,030 | | | $ | 319,917 | | | $ | (113 | ) | | $ | 311,747 | | | $ | 316,614 | | | $ | 4,867 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Capital Ratios | | Regulatory Minimum
To Be
Well Capitalized | | | September 30,
2013 | | | June 30,
2013 | | | March 31,
2013 | | | December 31,
2012 | | | September 30,
2012 | |
Bryn Mawr Trust Company | | | | | | | | | | | | | | | | | | | | | | | | |
Tier I capital to risk weighted assets (“RWA”) | | | 6.00 | % | | | 11.36 | % | | | 11.58 | % | | | 11.52 | % | | | 11.20 | % | | | 11.99 | % |
Total (Tier II) capital to RWA | | | 10.00 | % | | | 12.33 | % | | | 12.55 | % | | | 12.51 | % | | | 12.20 | % | | | 14.09 | % |
Tier I leverage ratio | | | 5.00 | % | | | 9.22 | % | | | 9.07 | % | | | 8.70 | % | | | 8.84 | % | | | 9.23 | % |
Tangible equity ratio | | | N/A | | | | 8.32 | % | | | 8.29 | % | | | 8.11 | % | | | 7.72 | % | | | 8.85 | % |
| | | | | | |
Bryn Mawr Bank Corporation | | | | | | | | | | | | | | | | | | | | | | | | |
Tier I capital to RWA | | | 6.00 | % | | | 11.33 | % | | | 11.47 | % | | | 11.33 | % | | | 11.02 | % | | | 11.64 | % |
Total (Tier II) capital to RWA | | | 10.00 | % | | | 12.30 | % | | | 12.44 | % | | | 12.32 | % | | | 12.02 | % | | | 13.74 | % |
Tier I leverage ratio | | | 5.00 | % | | | 9.22 | % | | | 9.00 | % | | | 8.58 | % | | | 8.72 | % | | | 8.98 | % |
Tangible equity ratio | | | N/A | | | | 8.30 | % | | | 8.21 | % | | | 7.98 | % | | | 7.60 | % | | | 8.58 | % |
17
Bryn Mawr Bank Corporation
Quarterly Average Balances and Tax-Equivalent Interest Income and Expense and Tax-Equivalent Yields - (unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | For The Three Months Ended | |
| | | September 30, 2013 | | | June 30, 2013 | | | March 31, 2013 | | | December 31, 2012 | | | September 30, 2012 | |
| (dollars in thousands) | | Average
Balance | | | Interest
Income/
Expense | | | Average
Rates
Earned/
Paid | | | Average
Balance | | | Interest
Income/
Expense | | | Average
Rates
Earned/
Paid | | | Average
Balance | | | Interest
Income/
Expense | | | Average
Rates
Earned/
Paid | | | Average
Balance | | | Interest
Income/
Expense | | | Average
Rates
Earned/
Paid | | | Average
Balance | | | Interest
Income/
Expense | | | Average
Rates
Earned/
Paid | |
Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing deposits with other banks | | $ | 35,589 | | | $ | 21 | | | | 0.23 | % | | $ | 59,981 | | | $ | 41 | | | | 0.27 | % | | $ | 117,372 | | | $ | 69 | | | | 0.24 | % | | $ | 91,234 | | | $ | 41 | | | | 0.18 | % | | $ | 53,767 | | | $ | 34 | | | | 0.25 | % |
Investment securities - available for sale: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Taxable | | | 284,558 | | | | 988 | | | | 1.38 | % | | | 287,287 | | | | 846 | | | | 1.18 | % | | | 289,097 | | | | 889 | | | | 1.25 | % | | | 286,889 | | | | 897 | | | | 1.24 | % | | | 309,570 | | | | 960 | | | | 1.23 | % |
Tax-exempt | | | 39,860 | | | | 159 | | | | 1.58 | % | | | 38,442 | | | | 146 | | | | 1.52 | % | | | 34,150 | | | | 125 | | | | 1.48 | % | | | 24,483 | | | | 102 | | | | 1.66 | % | | | 18,481 | | | | 82 | | | | 1.77 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investment securities - available for sale | | | 324,418 | | | | 1,147 | | | | 1.40 | % | | | 325,729 | | | | 992 | | | | 1.22 | % | | | 323,247 | | | | 1,014 | | | | 1.27 | % | | | 311,372 | | | | 999 | | | | 1.28 | % | | | 328,051 | | | | 1,042 | | | | 1.26 | % |
Investment securities - trading | | | 2,182 | | | | 7 | | | | 1.27 | % | | | 2,168 | | | | 13 | | | | 2.41 | % | | | 1,695 | | | | 16 | | | | 3.83 | % | | | 1,400 | | | | 16 | | | | 4.55 | % | | | 1,343 | | | | 5 | | | | 1.48 | % |
Loans and leases * | | | 1,464,359 | | | | 18,755 | | | | 5.08 | % | | | 1,428,069 | | | | 18,277 | | | | 5.13 | % | | | 1,403,683 | | | | 17,854 | | | | 5.16 | % | | | 1,345,873 | | | | 17,721 | | | | 5.24 | % | | | 1,303,783 | | | | 17,089 | | | | 5.21 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total interest-earning assets | | | 1,826,548 | | | | 19,930 | | | | 4.33 | % | | | 1,815,947 | | | | 19,323 | | | | 4.27 | % | | | 1,845,997 | | | | 18,953 | | | | 4.16 | % | | | 1,749,879 | | | | 18,777 | | | | 4.27 | % | | | 1,686,944 | | | | 18,170 | | | | 4.28 | % |
Cash and due from banks | | | 12,497 | | | | | | | | | | | | 12,876 | | | | | | | | | | | | 13,287 | | | | | | | | | | | | 14,817 | | | | | | | | | | | | 12,922 | | | | | | | | | |
Less allowance for loan and lease losses | | | (14,653 | ) | | | | | | | | | | | (14,625 | ) | | | | | | | | | | | (14,693 | ) | | | | | | | | | | | (14,063 | ) | | | | | | | | | | | (13,337 | ) | | | | | | | | |
Other assets | | | 151,204 | | | | | | | | | | | | 151,933 | | | | | | | | | | | | 149,963 | | | | | | | | | | | | 147,664 | | | | | | | | | | | | 146,274 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total assets | | $ | 1,975,596 | | | | | | | | | | | $ | 1,966,131 | | | | | | | | | | | $ | 1,994,554 | | | | | | | | | | | $ | 1,898,297 | | | | | | | | | | | $ | 1,832,803 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Savings, NOW and market rate deposits | | $ | 944,963 | | | $ | 419 | | | | 0.18 | % | | $ | 969,654 | | | $ | 445 | | | | 0.18 | % | | $ | 975,464 | | | $ | 479 | | | | 0.20 | % | | $ | 890,629 | | | $ | 557 | | | | 0.25 | % | | $ | 849,966 | | | $ | 567 | | | | 0.27 | % |
Wholesale deposits | | | 58,715 | | | | 55 | | | | 0.37 | % | | | 42,734 | | | | 44 | | | | 0.41 | % | | | 50,178 | | | | 54 | | | | 0.44 | % | | | 49,621 | | | | 58 | | | | 0.47 | % | | | 49,765 | | | | 55 | | | | 0.44 | % |
Time deposits | | | 152,788 | | | | 165 | | | | 0.43 | % | | | 164,247 | | | | 205 | | | | 0.50 | % | | | 190,937 | | | | 242 | | | | 0.51 | % | | | 190,332 | | | | 290 | | | | 0.61 | % | | | 178,711 | | | | 316 | | | | 0.70 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total interest-bearing deposits | | | 1,156,466 | | | | 639 | | | | 0.22 | % | | | 1,176,635 | | | | 694 | | | | 0.24 | % | | | 1,216,579 | | | | 775 | | | | 0.26 | % | | | 1,130,582 | | | | 905 | | | | 0.32 | % | | | 1,078,442 | | | | 938 | | | | 0.35 | % |
Subordinated debentures | | | — | | | | — | | | | — | % | | | — | | | | — | | | | — | % | | | — | | | | — | | | | — | % | | | 7,283 | | | | 79 | | | | 4.32 | % | | | 21,114 | | | | 271 | | | | 5.11 | % |
Short-term borrowings | | | 14,995 | | | | 5 | | | | 0.13 | % | | | 13,358 | | | | 4 | | | | 0.12 | % | | | 11,978 | | | | 4 | | | | 0.14 | % | | | 13,243 | | | | 3 | | | | 0.09 | % | | | 13,273 | | | | 4 | | | | 0.12 | % |
Long-term FHLB advances and other borrowings | | | 163,818 | | | | 643 | | | | 1.56 | % | | | 150,468 | | | | 596 | | | | 1.59 | % | | | 148,699 | | | | 667 | | | | 1.82 | % | | | 159,559 | | | | 798 | | | | 1.99 | % | | | 167,251 | | | | 918 | | | | 2.18 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Borrowings | | | 178,813 | | | | 648 | | | | 1.44 | % | | | 163,826 | | | | 600 | | | | 1.47 | % | | | 160,677 | | | | 671 | | | | 1.69 | % | | | 180,085 | | | | 880 | | | | 1.94 | % | | | 201,638 | | | | 1,193 | | | | 2.35 | % |
Total interest-bearing liabilities | | | 1,335,279 | | | | 1,287 | | | | 0.38 | % | | | 1,340,461 | | | | 1,294 | | | | 0.39 | % | | | 1,377,256 | | | | 1,446 | | | | 0.43 | % | | | 1,310,667 | | | | 1,785 | | | | 0.54 | % | | | 1,280,080 | | | | 2,131 | | | | 0.66 | % |
Noninterest-bearing deposits | | | 402,292 | | | | | | | | | | | | 391,387 | | | | | | | | | | | | 386,881 | | | | | | | | | | | | 359,008 | | | | | | | | | | | | 330,179 | | | | | | | | | |
Other liabilities | | | 24,904 | | | | | | | | | | | | 23,617 | | | | | | | | | | | | 26,123 | | | | | | | | | | | | 27,175 | | | | | | | | | | | | 25,100 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total noninterest-bearing liabilities | | | 427,196 | | | | | | | | | | | | 415,004 | | | | | | | | | | | | 413,004 | | | | | | | | | | | | 386,183 | | | | | | | | | | | | 355,279 | | | | | | | | | |
Total liabilities | | | 1,762,475 | | | | | | | | | | | | 1,755,465 | | | | | | | | | | | | 1,790,260 | | | | | | | | | | | | 1,696,850 | | | | | | | | | | | | 1,635,359 | | | | | | | | | |
Shareholders’ equity | | | 213,121 | | | | | | | | | | | | 210,666 | | | | | | | | | | | | 204,294 | | | | | | | | | | | | 201,447 | | | | | | | | | | | | 197,444 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total liabilities and shareholders’ equity | | $ | 1,975,596 | | | | | | | | | | | $ | 1,966,131 | | | | | | | | | | | $ | 1,994,554 | | | | | | | | | | | $ | 1,898,297 | | | | | | | | | | | $ | 1,832,803 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest income to earning assets | | | | | | | | | | | 4.33 | % | | | | | | | | | | | 4.27 | % | | | | | | | | | | | 4.16 | % | | | | | | | | | | | 4.27 | % | | | | | | | | | | | 4.28 | % |
Net interest spread | | | | | | | | | | | 3.95 | % | | | | | | | | | | | 3.88 | % | | | | | | | | | | | 3.73 | % | | | | | | | | | | | 3.73 | % | | | | | | | | | | | 3.62 | % |
Effect of noninterest-bearing sources | | | | | | | | | | | 0.10 | % | | | | | | | | | | | 0.10 | % | | | | | | | | | | | 0.12 | % | | | | | | | | | | | 0.13 | % | | | | | | | | | | | 0.16 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Tax-equivalent net interest income/ margin on earning assets | | | | | | $ | 18,643 | | | | 4.05 | % | | | | | | $ | 18,029 | | | | 3.98 | % | | | | | | $ | 17,507 | | | | 3.85 | % | | | | | | $ | 16,992 | | | | 3.86 | % | | | | | | $ | 16,039 | | | | 3.78 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Tax-equivalent adjustment | | | | | | $ | 110 | | | | 0.02 | % | | | | | | $ | 106 | | | | 0.02 | % | | | | | | $ | 98 | | | | 0.03 | % | | | | | | $ | 96 | | | | 0.02 | % | | | | | | $ | 88 | | | | 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. |
18
Bryn Mawr Bank Corporation
Average Balances and Tax-Equivalent Interest Income and Expense and Tax-Equivalent Yields
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | For The Nine Months Ended September 30, | |
| | | 2013 | | | 2012 | |
| (dollars in thousands) | | Average
Balance | | | Interest
Income/
Expense | | | Average
Rates
Earned/
Paid | | | Average
Balance | | | Interest
Income/
Expense | | | Average
Rates
Earned/
Paid | |
Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing deposits with other banks | | $ | 70,681 | | | | 131 | | | | 0.25 | % | | $ | 50,033 | | | | 86 | | | | 0.23 | % |
Investment securities available for sale: | | | | | | | | | | | | | | | | | | | — | | | | | % |
Taxable | | | 286,964 | | | | 2,721 | | | | 1.27 | % | | | 303,865 | | | | 3,166 | | | | 1.39 | % |
Tax-exempt | | | 37,505 | | | | 429 | | | | 1.53 | % | | | 14,067 | | | | 198 | | | | 1.88 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Investment securities - available for sale | | | 324,469 | | | | 3,150 | | | | 1.30 | % | | | 317,932 | | | | 3,364 | | | | 1.41 | % |
Investment securities - trading | | | 2,017 | | | | 23 | | | | 1.52 | % | | | 1,442 | | | | 21 | | | | 1.94 | % |
Loans and leases * | | | 1,432,260 | | | | 54,902 | | | | 5.13 | % | | | 1,299,135 | | | | 51,419 | | | | 5.27 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total interest earning assets | | | 1,829,427 | | | | 58,206 | | | | 4.25 | % | | | 1,668,542 | | | | 54,890 | | | | 4.38 | |
Cash and due from banks | | | 12,884 | | | | | | | | | | | | 12,242 | | | | | | | | | |
Less allowance for loan and lease losses | | | (14,657 | ) | | | | | | | | | | | (13,270 | ) | | | | | | | | |
Other assets | | | 151,038 | | | | | | | | | | | | 143,563 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total assets | | $ | 1,978,692 | | | | | | | | | | | $ | 1,811,077 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | |
Savings, NOW and market rate deposits | | $ | 963,249 | | | $ | 1,343 | | | | 0.19 | % | | $ | 807,874 | | | $ | 1,712 | | | | 0.28 | % |
Wholesale deposits | | | 50,575 | | | | 153 | | | | 0.40 | % | | | 68,922 | | | | 199 | | | | 0.38 | % |
Time deposits | | | 169,184 | | | | 613 | | | | 0.48 | % | | | 197,607 | | | | 1,217 | | | | 0.82 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total interest-bearing deposits | | $ | 1,183,008 | | | | 2,109 | | | | 0.24 | % | | $ | 1,074,403 | | | | 3,128 | | | | 0.39 | % |
Long-term FHLB advances and other borrowings | | | 155,412 | | | | 1,907 | | | | 1.64 | % | | | 165,717 | | | | 2,808 | | | | 2.26 | % |
Short-term borrowings | | | 12,429 | | | | 11 | | | | 0.12 | % | | | 13,244 | | | | 14 | | | | 0.14 | % |
Subordinated debt | | | — | | | | — | | | | | % | | | 22,035 | | | | 852 | | | | 5.15 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Borrowings | | | 167,841 | | | | 1,918 | | | | 1.53 | % | | | 200,996 | | | | 3,674 | | | | 2.43 | % |
Total interest-bearing liabilities | | | 1,350,849 | | | | 4,027 | | | | 0.40 | % | | | 1,275,399 | | | | 6,802 | | | | 0.71 | % |
Noninterest-bearing deposits | | | 393,576 | | | | | | | | | | | | 319,767 | | | | | | | | | |
Other liabilities | | | 24,874 | | | | | | | | | | | | 24,508 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total noninterest-bearing liabilities | | | 418,450 | | | | | | | | | | | | 344,275 | | | | | | | | | |
Total liabilities | | | 1,769,299 | | | | | | | | | | | | 1,619,674 | | | | | | | | | |
Shareholders’ equity | | | 209,393 | | | | | | | | | | | | 191,403 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total liabilities and shareholders’ equity | | $ | 1,978,692 | | | | | | | | | | | $ | 1,811,077 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Interest income to earning assets | | | | | | | | | | | 4.25 | % | | | | | | | | | | | 4.38 | % |
Net interest spread | | | | | | | | | | | 3.85 | % | | | | | | | | | | | 3.67 | % |
Effect of noninterest-bearing sources | | | | | | | | | | | 0.11 | % | | | | | | | | | | | 0.17 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Tax-equivalent net interest income/ margin on earning assets | | | | | | $ | 54,179 | | | | 3.96 | % | | | | | | $ | 48,088 | | | | 3.84 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Tax-equivalent adjustment | | | | | | $ | 314 | | | | 0.02 | % | | | | | | $ | 248 | | | | 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. |
19
