Exhibit 99.1
Bryn Mawr Bank Corporation
FOR RELEASE: IMMEDIATELY | Frank Leto, President, CEO |
FOR MORE INFORMATION CONTACT: | 610-581-4730 |
| Mike Harrington, CFO |
| 610-526-2466 |
Bryn Mawr Bank Corporation Reports Third Quarter Earnings of $7.5Million, Strong Loan Growth, Declares Dividend of $0.20
BRYN MAWR, Pa., October 22, 2015 - Bryn Mawr Bank Corporation (NASDAQ: BMTC) (the “Corporation”), parent of The Bryn Mawr Trust Company (the “Bank”), today reported net income of $7.5 million and diluted earnings per share of $0.42 for the three months ended September 30, 2015, as compared to net income of $6.5 million and diluted earnings per share of $0.47 for the same period in 2014.
On a non-GAAP basis, core net income, which excludes due diligence and merger-related expenses and net gain on sale of available for sale investment securities, was $8.1 million, or $0.46 per diluted share, for the third quarter of 2015 as compared to $7.0 million, or $0.51 per diluted share, for the same period in 2014. Management believes that this non-GAAP measure is important in evaluating the Corporation’s performance. A reconciliation of the non-GAAP to GAAP performance measure is included in the schedules accompanying this earnings release.
During the quarter, portfolio loans grew by $75.5 million, or 3.5%, as the Bank’s expanded footprint continues to present new opportunities for our lending teams. “With the Continental systems conversion on the verge of completion, we are anticipating the elimination of the redundant costs associated with operating two bank platforms,” commented Frank Leto, President and Chief Executive Officer. Mr. Leto continued, “The strong loan growth during the quarter, as well as the consistent insurance and wealth management revenue streams are encouraging signs for the future.”
On October 22, 2015, the Board of Directors of the Corporation declared a quarterly dividend of $0.20 per share, payable December 1, 2015 to shareholders of record as of November 3, 2015.
SIGNIFICANT ITEMS OF NOTE
Results of Operations –3rd Quarter 2015 Compared to3rd Quarter 2014
● | Net income of $7.5 million for the three months ended September 30, 2015 increased $990 thousand, or 15.2%, from $6.5 million for the same period in 2014. |
● | Net interest income for the three months ended September 30, 2015 was $24.8 million, an increase of $5.7 million, or 29.5%, from $19.2 million for the same period in 2014. The increase in net interest income between the periods was largely related to the interest income generated by loans acquired in the January 1, 2015 merger with Continental Bank Holdings, Inc. (“CBHI” and the “Merger”). Average loans for the three months ended September 30, 2015 increased by $561.4 million from the same period in 2014. The increase in interest income resulting from loans acquired in the Merger was partially offset by an increase in interest expense on interest-bearing deposits. Average interest-bearing deposits for the three months ended September 30, 2015 increased by $459.5 million as compared to the same period in 2014, primarily related to the deposits acquired in the Merger. |
● | The tax-equivalent net interest margin of 3.65% for the three months ended September 30, 2015 was a 22 basis point decrease from 3.87% for the same period in 2014. The decrease was largely the result of the 16 basis point decline in tax-equivalent yield on portfolio loans, accompanied by a $561.4 million increase in average portfolio loan balances. In addition, average interest-bearing deposits, which increased by $459.5 million, included a 1 basis point increase in the tax-equivalent rate paid. The decline in yield on portfolio loans was primarily related to the lower yields earned on the loans acquired in the Merger. The contribution of fair value mark accretion to the tax equivalent net interest margin accounted for 15 basis points of the margin for the third quarter of 2015 as compared to 11 basis points for the same period in 2014. |
● | Non-interest income for the three months ended September 30, 2015 increased $1.8 million, as compared to the same period in 2014. A $901 thousand increase in insurance revenues, a $245 thousand increase in net gain on sale of loans and a $421 thousand increase in other operating income accounted for the majority of this increase. The significant increase in insurance revenues resulted from the October 2014 acquisition of Powers Craft Parker and Beard, Inc. and the April 2015 acquisition of the Robert J. McAllister Agency. Net gain on sale of loans included gains on the sale of residential mortgage loans and gains on the sale of SBA loans. Included in other operating income was a $140 thousand increase in income on bank owned life insurance (“BOLI”), primarily related to a $5.0 million investment in BOLI, which was completed on July 1, 2015. In addition, income on CRA investments for the third quarter of 2015 increased by $111 thousand as compared to the same period in 2014. |
● | Non-interest expense for the three months ended September 30, 2015 increased $5.4 million, to $25.4 million, as compared to $20.0 million for the same period in 2014. Increases of $1.8 million, $938 thousand and $1.3 million, in salary and wages, employee benefits and occupancy, furniture, fixtures and equipment expenses, respectively, much of which was related to the addition of the Continental staff and offices, along with $190 thousand in severance costs incurred in the third quarter of 2015, contributed to the increase. In addition, due diligence and merger-related costs increased by $240 thousand from the third quarter of 2014, largely due to the Merger and the ongoing integration efforts. Due diligence and merger-related expenses for the third quarter of 2015 included $541 thousand in salary and wages and related benefits, $318 thousand in consulting and other professional fees, and $177 thousand in systems conversion and deconversion costs. |
● | Nonperforming loans and leases totaled $12.3 million as of September 30, 2015, representing 0.55% of total portfolio loans and leases, as compared to $8.3 million, or 0.51% of total portfolio loans and leases as of September 30, 2014. For the three months ended September 30, 2015, the Corporation recorded net loan and lease charge-offs of $224 thousand, as compared to $421 thousand for the same period in 2014. The provision for loan and lease losses (the “Provision”) for the three months ended September 30, 2015 was $1.2 million as compared to $550 thousand for the same period in 2014. Largely contributing to the $650 thousand increase in Provision was the recognition of an impaired commercial and industrial loan which required a specific allowance for loan and lease loss (the “Allowance”) of $514 thousand. |
Results of Operations –3rd Quarter 2015 Compared to2nd Quarter 2015
● | Net income of $7.5 million for the three months ended September 30, 2015 decreased $623 thousand, or 7.7%, from $8.1 million for the three months ended June 30, 2015. |
● | Net interest income for the three months ended September 30, 2015 was $24.8 million, a decrease of $237 thousand from $25.1 million for the three months ended June 30, 2015. The decrease in net interest income between the periods was partially related to the $231 thousand interest expense on subordinated notes recorded in the third quarter. The Corporation issued $30.0 million of 4.75% subordinated notes in August 2015. The increase in coupon interest earned on portfolio loans, whose average balance increased by $69.8 million from the second quarter of 2015 to the third quarter of 2015, was substantially offset by the $483 thousand decrease in interest from the accretion of loan fair value marks between the periods. Loans acquired in mergers are marked to fair value at the time of acquisition. Subsequent maturities and early payoffs can result in unpredictable fluctuations in the recognition of the loan mark as a component of loan interest. |
● | The tax-equivalent net interest margin of 3.65% for the three months ended September 30, 2015 decreased 16 basis points from 3.81% in the second quarter of 2015. The contribution of fair value mark accretion to the tax equivalent net interest margin accounted for 15 basis points of the margin for the third quarter of 2015 as compared to 23 basis points for the second quarter of 2015. |
● | Non-interest income for the three months ended September 30, 2015 decreased $827 thousand from the second quarter of 2015. The decrease was partially related to the $406 thousand decrease in wealth management revenue. This decrease resulted not only from the absence of fees for tax services, which were earned in the second quarter of 2015, but also from the decrease in market value of the assets under management. Fees earned on a significant portion of the wealth clients are tied to the market value of the assets held. Assets under management, administration, supervision and brokerage as of September 30, 2015 totaled $8.22 billion, down from $8.54 billion as of June 30, 2015. Other factors impacting the decrease in non-interest income were a $200 thousand decrease in loan servicing and other fees, which included $127 thousand of impairment of non-mortgage servicing rights on serviced SBA loans, and a $161 thousand decrease in dividends on bank stocks. Partially offsetting these decreases was a $248 thousand increase in insurance revenue. |
● | Non-interest expense for the three months ended September 30, 2015 decreased $579 thousand, to $25.4 million, as compared to $26.0 million for the second quarter of 2015. The decrease was comprised of decreases of $279 thousand in due diligence and merger-related expenses, $251 thousand in occupancy expenses and $123 thousand in salaries and wages. The decrease in salaries and wages was net of $190 thousand of severance costs incurred in the third quarter of 2015. |
● | For the three months ended September 30, 2015, the Corporation recorded net loan and lease charge-offs of $224 thousand, as compared to $187 thousand for the second quarter of 2015. The Provision for the three months ended September 30, 2015 was $1.2 million, as compared to $850 thousand for the second quarter of 2015. The increase in Provision for the third quarter of 2015 was partially related to the $75.5 million net increase in portfolio loans between June 30, 2015 and September 30, 2015, as well as the need for specific Allowances on impaired loans. The most significant impaired loan was a $1.9 million commercial and industrial loan requiring a $514 thousand specific Allowance. |
Financial Condition –September 30, 2015 Compared to December 31, 2014
● | Total portfolio loans and leases of $2.23 billion as of September 30, 2015 increased by $576.5 million from December 31, 2014. In addition to the $424.2 million of portfolio loans acquired in the Merger, strong loan growth of $152.3 million, or 7.3%, occurred during the nine months ended September 30, 2015. |
● | The Allowance, as of September 30, 2015, was $15.9 million, or 0.71% of portfolio loans as compared to $14.6 million, or 0.88% of portfolio loans and leases, as of December 31, 2014. The decrease in the Allowance as a percentage of portfolio loans and leases was primarily the result of the increase in the balance of portfolio loans from the Merger. Loans acquired in the Merger were marked to their fair value at acquisition, and, as such, no additional Allowance was recorded for the acquired loan portfolio. In order to take this into account when evaluating the adequacy of the Allowance, in addition to other factors, management considers two non-GAAP measures: the Allowance as a percentage of originated loans and leases, which was 0.88% as of September 30, 2015 as compared to 0.94% as of December 31, 2014, and the Allowance plus the remaining loan mark, as a percentage of gross loans, which was 1.52% as of September 30, 2015, as compared to 1.27% as of December 31, 2014. |
● | Available for sale investment securities as of September 30, 2015 were $341.4 million, an increase of $111.8 million from December 31, 2014. In connection with the Merger, the Corporation acquired $181.8 million of available for sale investment securities. During the first quarter of 2015, the Corporation sold $63.2 million of these acquired available for sale investment securities in order to shorten the overall duration of the investment portfolio. Proceeds from the sale of available for sale investment securities along with excess cash were used to pay down $94.5 million of short-term FHLB advances assumed in the Merger, which matured shortly after the Merger was completed, as well as to prepay $19.5 million of long-term FHLB advances which had also been assumed in the Merger. |
● | Total assets as of September 30, 2015 were $2.95 billion, an increase of $706.2 million from December 31, 2014. The Merger accounted for an initial increase in total assets of $742.6 million. Taking into account the assets acquired in the Merger, portfolio loans and leases increased by $152.3 million, available for sale investment securities decreased by $70.0 million, and FHLB stock decreased by $4.8 million. |
● | Wealth assets under management, administration, supervision and brokerage totaled $8.22 billion as of September 30, 2015, an increase of $518.4 million from December 31, 2014. |
● | Deposits of $2.24 billion as of September 30, 2015, increased $551.8 million from December 31, 2014. The Merger accounted for an initial increase of $481.7 million of deposits, which included $93.9 million of non-interest-bearing deposits. In addition, an increase of $64.9 million and $5.3 million in non-interest-bearing deposits and interest-bearing deposits, respectively, were recorded between the dates. As of September 30, 2015, non-interest-bearing deposits comprised 27.0% of total deposits as compared to 26.5% as of December 31, 2014. |
● | The capital ratios for the Bank and the Corporation, as of September 30, 2015, as shown in the attached tables, indicate levels well above the regulatory minimum to be considered “well capitalized.” All of the Bank’s and the Corporation’s capital ratios have increased from the levels present at December 31, 2014, largely as a result of the stock issued in the Merger, increases in retained earnings and the impact of the Corporation’s issuance of $30 million of subordinated notes, the effect of which can be seen in the 40 basis point increase in the ratio of Tier II capital to risk weighted assets. |
EARNINGS CONFERENCE CALL
The Corporation will hold an earnings conference call at 8:30 a.m. Eastern Time on Friday, October 23, 2015.Interested parties may participate by dialing (toll-free) 1-877-504-8812 (international (toll) 1-412-902-6656). A recorded replay of the conference call will be available one hour after the conclusion of the call and will remain available through November 6, 2015. The recorded replay may be accessed by dialing (toll-free) 1-877-344-7529 (international (toll) 1-412-317-0088) and the conference number is 10072507.
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/bmtc151023-830a. An online archive of the webcast will be available within one hour of the conclusion of the call. The Corporation has also recently expanded its Investor Relations website to include added resources and information for shareholders and interested investors. Interested parties are encouraged to utilize the expanded resources of the site for more information on Bryn Mawr Bank Corporation.
FORWARD LOOKING STATEMENTS AND SAFE HARBOR
This press release contains statements which, to the extent that they are not recitations of historical fact may constitute forward-looking statements for purposes of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. Such forward-looking statements may include financial and other projections as well as statements regarding the Corporation’s future plans, objectives, performance, revenues, growth, profits, operating expenses or the Corporation’s underlying assumptions. The words “may,” “would,” “should,” “could,” “will,” “likely,” “possibly,” “expect,” “anticipate,” “intend,” “estimate,” “target,” “potentially,” “probably,” “outlook,” “predict,” “contemplate,” “continue,” “plan,” “forecast,” “project,” “are optimistic,” “are looking,” “are looking forward” and “believe” or other similar words and phrases may identify forward-looking statements. Persons reading this press release are cautioned that such statements are only predictions, and that the Corporation’s actual future results or performance may be materially different.
Such forward-looking statements involve known and unknown risks and uncertainties. A number of factors, many of which are beyond the Corporation's control, could cause our actual results, events or developments, or industry results, to be materially different from any future results, events or developments expressed, implied or anticipated by such forward-looking statements, and so our business and financial condition and results of operations could be materially and adversely affected. Such factors include, among others, that the integration of CBHI’s business with the Corporation may take longer than anticipated or be more costly to complete and that the anticipated benefits, including any anticipated cost savings or strategic gains may be significantly harder to achieve or take longer than anticipated or may not be achieved, 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 updated by our quarterly or other reports subsequently filed with the SEC.
# # # #
Bryn Mawr Bank Corporation
Consolidated Statements of Income - (unaudited)
(dollars in thousands, except per share data)
For The Three Months Ended | ||||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||
2015 | 2015 | 2015 | 2014 | 2014 | ||||||||||||||||
Interest and fees on loans and leases | $ | 25,620 | $ | 25,568 | $ | 25,164 | $ | 19,913 | $ | 19,710 | ||||||||||
Interest on cash and cash equivalents | 107 | 124 | 115 | 66 | 46 | |||||||||||||||
Interest on investment securities: | ||||||||||||||||||||
Taxable | 1,135 | 1,161 | 1,320 | 891 | 863 | |||||||||||||||
Non-taxable | 125 | 106 | 135 | 95 | 100 | |||||||||||||||
Dividends | 42 | 34 | 20 | 90 | 30 | |||||||||||||||
Total interest income | 27,029 | 26,993 | 26,754 | 21,055 | 20,749 | |||||||||||||||
Savings, NOW and market rate deposits | 584 | 575 | 594 | 422 | 430 | |||||||||||||||
Wholesale deposits | 203 | 195 | 188 | 190 | 175 | |||||||||||||||
Time deposits | 289 | 292 | 246 | 143 | 137 | |||||||||||||||
Interest on deposits | 1,076 | 1,062 | 1,028 | 755 | 742 | |||||||||||||||
Interest on short-term borrowings | 8 | 10 | 21 | 4 | 4 | |||||||||||||||
Interest on FHLB advances and other borrowings | 881 | 851 | 910 | 809 | 827 | |||||||||||||||
Interest on subordinated notes | 231 | - | - | - | - | |||||||||||||||
Total interest expense | 2,196 | 1,923 | 1,959 | 1,568 | 1,573 | |||||||||||||||
Net interest income | 24,833 | 25,070 | 24,795 | 19,487 | 19,176 | |||||||||||||||
Provision for loan and lease losses | 1,200 | 850 | 569 | (316 | ) | 550 | ||||||||||||||
Net interest income afterprovision for loan and lease losses | 23,633 | 24,220 | 24,226 | 19,803 | 18,626 | |||||||||||||||
Fees for wealth management services | 9,194 | 9,600 | 9,105 | 9,263 | 9,099 | |||||||||||||||
Service charges on deposits | 721 | 752 | 712 | 658 | 663 | |||||||||||||||
Loan servicing and other fees | 397 | 597 | 591 | 450 | 431 | |||||||||||||||
Net gain on sale of loans | 685 | 778 | 808 | 471 | 440 | |||||||||||||||
Net gain on sale of investment securities available for sale | 60 | 3 | 810 | 390 | - | |||||||||||||||
Net gain (loss) on sale of other real estate owned | - | 75 | 15 | 4 | (49 | ) | ||||||||||||||
Dividends on bank stocks | 138 | 299 | 615 | 211 | 126 | |||||||||||||||
Insurance revenue | 1,065 | 817 | 1,021 | 795 | 164 | |||||||||||||||
Other operating income | 1,090 | 1,256 | 1,088 | 641 | 669 | |||||||||||||||
Non-interest income | 13,350 | 14,177 | 14,765 | 12,883 | 11,543 | |||||||||||||||
Salaries and wages | 10,941 | 11,064 | 10,870 | 9,869 | 9,110 | |||||||||||||||
Employee benefits | 2,590 | 2,618 | 2,729 | 1,900 | 1,652 | |||||||||||||||
Occupancy and bank premises | 2,557 | 2,808 | 2,466 | 1,808 | 1,881 | |||||||||||||||
Furniture, fixtures and equipment | 1,712 | 1,488 | 1,512 | 1,358 | 1,078 | |||||||||||||||
Advertising | 410 | 479 | 557 | 400 | 310 | |||||||||||||||
Amortization of intangible assets | 953 | 955 | 982 | 753 | 633 | |||||||||||||||
Due diligence and merger-related expenses | 1,015 | 1,294 | 2,501 | 957 | 775 | |||||||||||||||
Professional fees | 843 | 827 | 673 | 809 | 701 | |||||||||||||||
Pennsylvania bank shares tax | 433 | 433 | 433 | 64 | 412 | |||||||||||||||
Information technology | 1,053 | 814 | 702 | 747 | 678 | |||||||||||||||
Other operating expenses | 2,896 | 3,202 | 4,004 | 3,267 | 2,731 | |||||||||||||||
Non-interest expense | 25,403 | 25,982 | 27,429 | 21,932 | 19,961 | |||||||||||||||
Income before income taxes | 11,580 | 12,415 | 11,562 | 10,754 | 10,208 | |||||||||||||||
Income tax expense | 4,084 | 4,296 | 4,068 | 3,710 | 3,702 | |||||||||||||||
Net income | $ | 7,496 | $ | 8,119 | $ | 7,494 | $ | 7,044 | $ | 6,506 | ||||||||||
Per share data: | ||||||||||||||||||||
Weighted average shares outstanding | 17,572,421 | 17,713,794 | 17,545,802 | 13,646,098 | 13,600,348 | |||||||||||||||
Dilutive common shares | 263,289 | 340,869 | 357,456 | 296,682 | 272,516 | |||||||||||||||
Adjusted weighted average diluted shares | 17,835,710 | 18,054,663 | 17,903,258 | 13,942,780 | 13,872,864 | |||||||||||||||
Basic earnings per common share | $ | 0.43 | $ | 0.46 | $ | 0.43 | $ | 0.52 | $ | 0.48 | ||||||||||
Diluted earnings per common share | $ | 0.42 | $ | 0.45 | $ | 0.42 | $ | 0.51 | $ | 0.47 | ||||||||||
Dividend declared per share | $ | 0.20 | $ | 0.19 | $ | 0.19 | $ | 0.19 | $ | 0.19 | ||||||||||
Effective tax rate | 35.3 | % | 34.6 | % | 35.2 | % | 34.5 | % | 36.3 | % | ||||||||||
Supplemental Non-GAAP Performance Measures* (Includes Reconciliation of Non-GAAP to GAAP Performance Measures) | ||||||||||||||||||||
Net income (a GAAP measure) | $ | 7,496 | $ | 8,119 | $ | 7,494 | $ | 7,044 | $ | 6,506 | ||||||||||
less: tax-effected net gain on sale of available for sale investments | (39 | ) | (2 | ) | (527 | ) | (254 | ) | - | |||||||||||
add: tax-effected** due diligence and merger-related expenses | 660 | 841 | 1,626 | 622 | 504 | |||||||||||||||
Net income excluding tax-effected** due diligence and merger-related expenses and net gain on sale of available for sale investment securities (a non-GAAP measure) | $ | 8,117 | $ | 8,958 | $ | 8,593 | $ | 7,412 | $ | 7,010 | ||||||||||
Basic earnings per common share excluding tax-effected** due diligence and merger-related expenses and security gains (a non-GAAP measure) | $ | 0.46 | $ | 0.51 | $ | 0.49 | $ | 0.54 | $ | 0.52 | ||||||||||
Diluted earnings per common share excluding tax-effected** due diligence and merger-related expenses and security gains (a non-GAAP measure) | $ | 0.46 | $ | 0.50 | $ | 0.48 | $ | 0.53 | $ | 0.51 | ||||||||||
*The Corporation believes the presentation of the above non-GAAP financial measure provides useful supplemental information that is essential to an investor’s proper understanding of the results of operations of the Corporation. Management uses this non-GAAP financial measure in its analysis of the Corporation’s performance. This non-GAAP disclosure should not be viewed as a substitute for the financial measure determined in accordance with GAAP, nor is it necessarily comparable to a non-GAAP performance measure that may be presented by other companies
** assumed nominal tax rate of 35%
Bryn Mawr Bank Corporation
Consolidated Statements of Income - (unaudited)
(dollars in thousands, except per share data)
For The Nine Months Ended September 30, | ||||||||
2015 | 2014 | |||||||
Interest and fees on loans and leases | $ | 76,352 | $ | 58,628 | ||||
Interest on cash and cash equivalents | 346 | 127 | ||||||
Interest on investment securities: | ||||||||
Taxable | 3,616 | 2,705 | ||||||
Non-taxable | 366 | 304 | ||||||
Dividends | 96 | 87 | ||||||
Total interest income | $ | 80,776 | $ | 61,851 | ||||
Savings, NOW and market rate deposits | 1,753 | 1,254 | ||||||
Wholesale deposits | 586 | 437 | ||||||
Time deposits | 827 | 453 | ||||||
Interest on deposits | 3,166 | 2,144 | ||||||
Interest on short-term borrowings | 39 | 12 | ||||||
Interest on FHLB advances and other borrowings | 2,642 | 2,354 | ||||||
Interest on subordinated notes | 231 | - | ||||||
Total interest expense | 6,078 | 4,510 | ||||||
Net interest income | 74,698 | 57,341 | ||||||
Provision for loan and lease losses | 2,619 | 1,200 | ||||||
Net interest income after provision for loan and lease losses | 72,079 | 56,141 | ||||||
Fees for wealth management services | 27,899 | 27,511 | ||||||
Service charges on deposits | 2,185 | 1,920 | ||||||
Loan servicing and other fees | 1,585 | 1,305 | ||||||
Net gain on sale of loans | 2,271 | 1,301 | ||||||
Net gain on sale of investment securities available for sale | 873 | 81 | ||||||
Net gain on sale of other real estate owned | 90 | 171 | ||||||
Dividends on bank stocks | 1,052 | 404 | ||||||
Insurance revenue | 2,903 | 369 | ||||||
Other operating income | 3,434 | 2,377 | ||||||
Non-interest income | 42,292 | 35,439 | ||||||
Salaries and wages | 32,875 | 27,244 | ||||||
Employee benefits | 7,937 | 5,440 | ||||||
Occupancy and bank premises | 7,831 | 5,497 | ||||||
Furniture fixtures and equipment | 4,712 | 3,150 | ||||||
Advertising | 1,446 | 1,104 | ||||||
Amortization of intangible assets | 2,890 | 1,906 | ||||||
Due diligence and merger-related expenses | 4,810 | 1,416 | ||||||
Professional fees | 2,343 | 2,208 | ||||||
Pennsylvania bank shares tax | 1,299 | 1,192 | ||||||
Information technology | 2,569 | 2,024 | ||||||
Other operating expenses | 10,102 | 8,305 | ||||||
Non-interest expense | 78,814 | 59,486 | ||||||
Income before income taxes | 35,557 | 32,094 | ||||||
Income tax expense | 12,448 | 11,295 | ||||||
Net income | $ | 23,109 | $ | 20,799 | ||||
Per share data: | ||||||||
Weighted average shares outstanding | 17,610,353 | 13,539,329 | ||||||
Dilutive common shares | 320,538 | 294,114 | ||||||
Adjusted weighted average shares | 17,930,891 | 13,833,443 | ||||||
Basic earnings per common share | $ | 1.31 | $ | 1.54 | ||||
Diluted earnings per common share | $ | 1.29 | $ | 1.50 | ||||
Dividend declared per share | $ | 0.58 | $ | 0.55 | ||||
Effective tax rate | 35.0 | % | 35.2 | % | ||||
Supplemental Non-GAAP Performance Measures* (Includes Reconciliation of Non-GAAP to GAAP Performance Measures) | ||||||||
Net income (a GAAP measure) | $ | 23,109 | $ | 20,799 | ||||
less: tax-effected net gain on sale of available for sale investments | (567 | ) | (53 | ) | ||||
add: tax-effected** due diligence and merger-related expenses | 3,127 | 920 | ||||||
Net income excluding tax-effected** due diligence and merger-related expenses and net gain on sale of available for sale investment securities (a non-GAAP measure) | $ | 25,669 | $ | 21,666 | ||||
Basic earnings per common share excluding tax-effected** due diligence and merger-related expenses (a non-GAAP measure) | $ | 1.46 | $ | 1.60 | ||||
Diluted earnings per common share excluding tax-effected** due diligence and merger-related expenses (a non-GAAP measure) | $ | 1.43 | $ | 1.57 | ||||
*The Corporation believes the presentation of the above non-GAAP financial measure provides useful supplemental information that is essential to an investor’s proper understanding of the results of operations of the Corporation. Management uses this non-GAAP financial measure in its analysis of the Corporation’s performance. This non-GAAP disclosure should not be viewed as a substitute for the financial measure determined in accordance with GAAP, nor is it necessarily comparable to a non-GAAP performance measure that may be presented by other companies
** assumed nominal tax rate of 35%
Bryn Mawr Bank Corporation
Consolidated Balance Sheets - (unaudited)
(dollars in thousands)
September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||
2015 | 2015 | 2015 | 2014 | 2014 | ||||||||||||||||
Assets | ||||||||||||||||||||
Interest-bearing deposits with banks | $ | 100,980 | $ | 156,282 | $ | 244,248 | $ | 202,552 | $ | 56,253 | ||||||||||
Investment securities - available for sale | 341,421 | 349,496 | 334,746 | 229,577 | 265,939 | |||||||||||||||
Investment securities - trading | 3,451 | 4,029 | 4,035 | 3,896 | 3,803 | |||||||||||||||
Loans held for sale | 8,721 | 15,363 | 6,656 | 3,882 | 1,375 | |||||||||||||||
Portfolio loans: | ||||||||||||||||||||
Consumer | 22,350 | 25,123 | 20,204 | 18,480 | 16,810 | |||||||||||||||
Commercial & industrial | 488,977 | 472,702 | 457,432 | 335,645 | 342,524 | |||||||||||||||
Commercial mortgages | 971,983 | 924,161 | 892,675 | 689,528 | 683,558 | |||||||||||||||
Construction | 82,820 | 88,122 | 81,408 | 66,267 | 59,923 | |||||||||||||||
Residential mortgages | 399,730 | 381,323 | 379,363 | 313,442 | 314,127 | |||||||||||||||
Home equity lines & loans | 212,258 | 211,982 | 209,037 | 182,082 | 183,314 | |||||||||||||||
Leases | 50,646 | 49,850 | 48,412 | 46,813 | 44,982 | |||||||||||||||
Total portfolio loans and leases | 2,228,764 | 2,153,263 | 2,088,531 | 1,652,257 | 1,645,238 | |||||||||||||||
Earning assets | 2,683,337 | 2,678,433 | 2,678,216 | 2,092,164 | 1,972,608 | |||||||||||||||
Cash and due from banks | 17,161 | 20,258 | 17,269 | 16,717 | 11,312 | |||||||||||||||
Allowance for loan and lease losses | (15,935 | ) | (14,959 | ) | (14,296 | ) | (14,586 | ) | (15,599 | ) | ||||||||||
Premises and equipment | 44,370 | 43,164 | 42,888 | 33,748 | 32,733 | |||||||||||||||
Accrued interest receivable | 7,744 | 7,518 | 7,465 | 5,560 | 5,661 | |||||||||||||||
Mortgage servicing rights | 5,031 | 4,970 | 4,815 | 4,765 | 4,796 | |||||||||||||||
Goodwill | 104,338 | 104,322 | 101,619 | 35,502 | 32,843 | |||||||||||||||
Other intangible assets | 25,356 | 26,309 | 26,522 | 22,998 | 17,459 | |||||||||||||||
Bank owned life insurance | 38,157 | 32,941 | 32,772 | 20,535 | 20,451 | |||||||||||||||
FHLB stock | 11,742 | 11,542 | 11,541 | 11,523 | 12,889 | |||||||||||||||
Deferred income taxes | 11,216 | 11,066 | 12,057 | 7,011 | 5,786 | |||||||||||||||
Other investments | 9,499 | 9,295 | 9,238 | 5,226 | 4,592 | |||||||||||||||
Other assets | 10,726 | 15,155 | 13,073 | 5,343 | 18,351 | |||||||||||||||
Total assets | $ | 2,952,742 | $ | 2,950,014 | $ | 2,943,179 | $ | 2,246,506 | $ | 2,123,882 | ||||||||||
Liabilities and shareholders' equity | ||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||
Interest-bearing checking | $ | 330,684 | $ | 328,606 | $ | 349,582 | $ | 277,228 | $ | 256,890 | ||||||||||
Money market | 748,983 | 699,263 | 717,441 | 566,354 | 550,238 | |||||||||||||||
Savings | 192,995 | 189,120 | 184,819 | 138,992 | 142,364 | |||||||||||||||
Wholesale non-maturity deposits | 65,636 | 65,365 | 69,555 | 66,693 | 41,290 | |||||||||||||||
Wholesale time deposits | 57,671 | 67,894 | 73,476 | 73,458 | 60,171 | |||||||||||||||
Retail time deposits | 238,269 | 274,008 | 263,996 | 118,400 | 121,158 | |||||||||||||||
Total interest-bearing deposits | 1,634,238 | 1,624,256 | 1,658,869 | 1,241,125 | 1,172,111 | |||||||||||||||
Non-interest-bearing deposits | 605,607 | 636,390 | 582,495 | 446,903 | 438,221 | |||||||||||||||
Total deposits | 2,239,845 | 2,260,646 | 2,241,364 | 1,688,028 | 1,610,332 | |||||||||||||||
Short-term borrowings | 24,264 | 26,406 | 38,372 | 23,824 | 13,980 | |||||||||||||||
Long-term FHLB advances and other borrowings | 254,893 | 244,923 | 250,088 | 260,146 | 230,574 | |||||||||||||||
Subordinated notes | 29,466 | - | - | - | - | |||||||||||||||
Other liabilities | 36,119 | 36,941 | 35,452 | 29,034 | 21,387 | |||||||||||||||
Shareholders' equity | 368,155 | 381,098 | 377,903 | 245,474 | 247,609 | |||||||||||||||
Total liabilities and shareholders' equity | $ | 2,952,742 | $ | 2,950,014 | $ | 2,943,179 | $ | 2,246,506 | $ | 2,123,882 | ||||||||||
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, | ||||||||||||||||
2015 | 2015 | 2015 | 2014 | 2014 | ||||||||||||||||
Assets | ||||||||||||||||||||
Interest-bearing deposits with banks | $ | 165,723 | $ | 182,099 | $ | 206,694 | $ | 115,276 | $ | 78,324 | ||||||||||
Investment securities - available for sale | 352,006 | 347,046 | 370,293 | 252,422 | 265,491 | |||||||||||||||
Investment securities - trading | 4,022 | 4,034 | 3,897 | 3,804 | 3,599 | |||||||||||||||
Loans held for sale | 10,527 | 6,735 | 3,470 | 982 | 1,116 | |||||||||||||||
Portfolio loans and leases | 2,181,125 | 2,111,371 | 2,079,412 | 1,654,239 | 1,629,102 | |||||||||||||||
Earning assets | 2,713,403 | 2,651,285 | 2,663,766 | 2,026,723 | 1,977,632 | |||||||||||||||
Cash and due from banks | 17,160 | 16,222 | 19,092 | 13,795 | 12,739 | |||||||||||||||
Allowance for loan and lease losses | (15,066 | ) | (14,346 | ) | (14,866 | ) | (15,837 | ) | (15,672 | ) | ||||||||||
Premises and equipment | 43,699 | 43,172 | 44,681 | 33,290 | 32,763 | |||||||||||||||
Goodwill | 104,323 | 102,237 | 98,744 | 35,539 | 32,843 | |||||||||||||||
Other intangible assets | 25,918 | 26,879 | 26,316 | 23,392 | 17,821 | |||||||||||||||
Bank owned life insurance | 38,015 | 32,830 | 32,655 | 20,478 | 20,402 | |||||||||||||||
FHLB stock | 11,592 | 11,542 | 11,928 | 11,419 | 12,864 | |||||||||||||||
Deferred income taxes | 10,684 | 11,819 | 10,449 | 2,941 | 5,926 | |||||||||||||||
Other assets | 31,580 | 29,061 | 25,391 | 31,102 | 30,491 | |||||||||||||||
Total assets | $ | 2,981,308 | $ | 2,910,701 | $ | 2,918,156 | $ | 2,182,842 | $ | 2,127,809 | ||||||||||
Liabilities and shareholders' equity | ||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||
Interest-bearing checking | $ | 334,350 | $ | 339,101 | $ | 341,756 | $ | 259,408 | $ | 255,601 | ||||||||||
Money market | 735,842 | 699,100 | 724,806 | 553,708 | 565,803 | |||||||||||||||
Savings | 190,337 | 186,343 | 185,848 | 143,650 | 143,877 | |||||||||||||||
Wholesale non-maturity deposits | 65,671 | 61,306 | 66,677 | 60,197 | 43,256 | |||||||||||||||
Wholesale time deposits | 67,606 | 69,191 | 73,443 | 68,525 | 54,976 | |||||||||||||||
Retail time deposits | 251,170 | 273,718 | 267,800 | 120,855 | 121,986 | |||||||||||||||
Total interest-bearing deposits | 1,644,976 | 1,628,759 | 1,660,330 | 1,206,343 | 1,185,499 | |||||||||||||||
Non-interest bearing deposits | 625,547 | 580,240 | 534,403 | 446,252 | 426,883 | |||||||||||||||
Total deposits | 2,270,523 | 2,208,999 | 2,194,733 | 1,652,595 | 1,612,382 | |||||||||||||||
Short-term borrowings | 28,166 | 34,980 | 55,207 | 19,407 | 14,074 | |||||||||||||||
Long-term FHLB advances and other borrowings | 248,606 | 249,678 | 266,342 | 237,835 | 235,091 | |||||||||||||||
Subordinated notes | 18,190 | - | - | - | - | |||||||||||||||
Other liabilities | 39,219 | 37,890 | 30,935 | 24,070 | 22,298 | |||||||||||||||
Shareholders' equity | 376,604 | 379,154 | 370,939 | 248,935 | 243,964 | |||||||||||||||
Total liabilities and shareholders' equity | $ | 2,981,308 | $ | 2,910,701 | $ | 2,918,156 | $ | 2,182,842 | $ | 2,127,809 | ||||||||||
Bryn Mawr Bank Corporation
Consolidated Year-to-Date Average Balance Sheets - (unaudited)
(dollars in thousands)
For The Nine Months Ended September 30, | ||||||||
2015 | 2014 | |||||||
Assets | ||||||||
Interest bearing deposits with banks | $ | 184,689 | $ | 72,341 | ||||
Investment securities - available for sale | 356,381 | 272,906 | ||||||
Investment securities - trading | 3,985 | 3,519 | ||||||
Loans held for sale | 6,936 | 969 | ||||||
Portfolio loans and leases | 2,124,342 | 1,592,749 | ||||||
Earning assets | 2,676,333 | 1,942,484 | ||||||
Cash and due from banks | 17,484 | 12,371 | ||||||
Allowance for loan and lease losses | (14,760 | ) | (15,835 | ) | ||||
Premises and equipment | 43,847 | 32,652 | ||||||
Goodwill | 101,436 | 32,843 | ||||||
Intangible assets | 26,370 | 18,454 | ||||||
Bank owned life insurance | 34,520 | 20,327 | ||||||
FHLB stock | 11,716 | 12,508 | ||||||
Deferred income taxes | 11,337 | 6,977 | ||||||
Other assets | 28,670 | 30,037 | ||||||
Total assets | $ | 2,936,953 | $ | 2,092,818 | ||||
Liabilities and shareholders' equity | ||||||||
Interest-bearing deposits: | ||||||||
Interest-bearing checking | $ | 338,375 | $ | 261,071 | ||||
Money market | 719,957 | 555,793 | ||||||
Savings | 187,525 | 141,724 | ||||||
Wholesale non-maturity deposits | 64,548 | 42,690 | ||||||
Wholesale time deposits | 70,059 | 46,373 | ||||||
Time deposits | 264,168 | 127,863 | ||||||
Total interest-bearing deposits | 1,644,632 | 1,175,514 | ||||||
Non-interest-bearing deposits | 580,356 | 419,542 | ||||||
Total deposits | 2,224,988 | 1,595,056 | ||||||
Short-term borrowings | 39,352 | 14,798 | ||||||
Long-term FHLB advances and other borrowings | 254,810 | 223,532 | ||||||
Subordinated notes | 6,130 | - | ||||||
Other liabilities | 35,978 | 21,403 | ||||||
Shareholders' equity | 375,695 | 238,029 | ||||||
Total liabilities and shareholders' equity | $ | 2,936,953 | $ | 2,092,818 | ||||
Bryn Mawr Bank Corporation
Quarterly Tax-Equivalent Net Interest Margin Calculation - (unaudited)
(dollars in thousands)
For The Three Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2015 | June 30, 2015 | March 31, 2015 | December 31, 2014 | September 30, 2014 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(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 | $ | 165,723 | $ | 107 | 0.26 | % | $ | 182,099 | $ | 124 | 0.27 | % | $ | 206,694 | $ | 115 | 0.23 | % | $ | 115,276 | $ | 65 | 0.22 | % | $ | 78,324 | $ | 46 | 0.23 | % | ||||||||||||||||||||||||||||||
Investment securities - available for sale: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Taxable | 310,582 | 1,172 | 1.50 | % | 310,011 | 1,184 | 1.53 | % | 335,208 | 1,336 | 1.62 | % | 221,190 | 973 | 1.75 | % | 230,457 | 884 | 1.52 | % | ||||||||||||||||||||||||||||||||||||||||
Tax-exempt | 41,424 | 186 | 1.78 | % | 37,035 | 157 | 1.70 | % | 35,085 | 203 | 2.35 | % | 31,232 | 142 | 1.80 | % | 35,034 | 149 | 1.69 | % | ||||||||||||||||||||||||||||||||||||||||
Total investment securities - available for sale | 352,006 | 1,358 | 1.53 | % | 347,046 | 1,341 | 1.55 | % | 370,293 | 1,539 | 1.69 | % | 252,422 | 1,115 | 1.75 | % | 265,491 | 1,033 | 1.54 | % | ||||||||||||||||||||||||||||||||||||||||
Investment securities - trading | 4,022 | 5 | 0.49 | % | 4,034 | 11 | 1.09 | % | 3,897 | 4 | 0.42 | % | 3,804 | 9 | 0.94 | % | 3,599 | 9 | 0.99 | % | ||||||||||||||||||||||||||||||||||||||||
Loans and leases * | 2,191,652 | 25,698 | 4.65 | % | 2,118,106 | 25,623 | 4.85 | % | 2,082,882 | 25,226 | 4.91 | % | 1,655,221 | 19,972 | 4.79 | % | 1,630,218 | 19,767 | 4.81 | % | ||||||||||||||||||||||||||||||||||||||||
Total interest-earning assets | 2,713,403 | 27,168 | 3.97 | % | 2,651,285 | 27,099 | 4.10 | % | 2,663,766 | 26,884 | 4.09 | % | 2,026,723 | 21,161 | 4.14 | % | 1,977,632 | 20,855 | 4.18 | % | ||||||||||||||||||||||||||||||||||||||||
Cash and due from banks | 17,160 | 16,222 | 19,092 | 13,795 | 12,739 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less: allowance for loan and lease losses | (15,066 | ) | (14,346 | ) | (14,866 | ) | (15,837 | ) | (15,672 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other assets | 265,811 | 257,540 | 250,164 | 158,161 | 153,110 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 2,981,308 | $ | 2,910,701 | $ | 2,918,156 | $ | 2,182,842 | $ | 2,127,809 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Savings, NOW and market rate deposits | $ | 1,260,529 | $ | 584 | 0.18 | % | $ | 1,224,544 | $ | 575 | 0.19 | % | $ | 1,252,410 | $ | 594 | 0.19 | % | $ | 956,766 | $ | 422 | 0.17 | % | $ | 965,281 | $ | 430 | 0.18 | % | ||||||||||||||||||||||||||||||
Wholesale deposits | 133,277 | 203 | 0.60 | % | 130,497 | 195 | 0.60 | % | 140,120 | 188 | 0.54 | % | 128,722 | 190 | 0.59 | % | 98,232 | 175 | 0.71 | % | ||||||||||||||||||||||||||||||||||||||||
Time deposits | 251,170 | 289 | 0.46 | % | 273,718 | 292 | 0.43 | % | 267,800 | 246 | 0.37 | % | 120,855 | 143 | 0.47 | % | 121,986 | 137 | 0.45 | % | ||||||||||||||||||||||||||||||||||||||||
Total interest-bearing deposits | 1,644,976 | 1,076 | 0.26 | % | 1,628,759 | 1,062 | 0.26 | % | 1,660,330 | 1,028 | 0.25 | % | 1,206,343 | 755 | 0.25 | % | 1,185,499 | 742 | 0.25 | % | ||||||||||||||||||||||||||||||||||||||||
Borrowings: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term borrowings | 28,166 | 8 | 0.11 | % | 34,980 | 10 | 0.11 | % | 55,344 | 21 | 0.15 | % | 19,407 | 4 | 0.08 | % | 14,074 | 3 | 0.08 | % | ||||||||||||||||||||||||||||||||||||||||
Long-term FHLB advances and other borrowings | 248,606 | 881 | 1.41 | % | 249,678 | 851 | 1.37 | % | 266,205 | 910 | 1.39 | % | 237,835 | 809 | 1.35 | % | 235,091 | 828 | 1.40 | % | ||||||||||||||||||||||||||||||||||||||||
Subordinated notes | 18,190 | 231 | 5.04 | % | - | - | - | % | - | - | - | % | - | - | - | % | - | - | - | % | ||||||||||||||||||||||||||||||||||||||||
Total borrowings | 294,962 | 1,120 | 1.51 | % | 284,658 | 861 | 1.21 | % | 321,549 | 931 | 1.17 | % | 257,242 | 813 | 1.25 | % | 249,165 | 831 | 1.32 | % | ||||||||||||||||||||||||||||||||||||||||
Total interest-bearing liabilities | 1,939,938 | 2,196 | 0.45 | % | 1,913,417 | 1,923 | 0.40 | % | 1,981,879 | 1,959 | 0.40 | % | 1,463,585 | 1,568 | 0.43 | % | 1,434,664 | 1,573 | 0.43 | % | ||||||||||||||||||||||||||||||||||||||||
Noninterest-bearing deposits | 625,547 | 580,240 | 534,403 | 446,252 | 426,883 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other liabilities | 39,219 | 37,890 | 30,935 | 24,070 | 22,298 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total noninterest-bearing liabilities | 664,766 | 618,130 | 565,338 | 470,322 | 449,181 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities | 2,604,704 | 2,531,547 | 2,547,217 | 1,933,907 | 1,883,845 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders' equity | 376,604 | 379,154 | 370,939 | 248,935 | 243,964 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 2,981,308 | $ | 2,910,701 | $ | 2,918,156 | $ | 2,182,842 | $ | 2,127,809 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest income to earning assets | 3.97 | % | 4.10 | % | 4.09 | % | 4.14 | % | 4.18 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest spread | 3.52 | % | 3.70 | % | 3.69 | % | 3.71 | % | 3.75 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Effect of noninterest-bearing sources | 0.13 | % | 0.11 | % | 0.10 | % | 0.13 | % | 0.12 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Tax-equivalent net interest margin | $ | 24,972 | 3.65 | % | $ | 25,176 | 3.81 | % | $ | 24,925 | 3.79 | % | $ | 19,593 | 3.84 | % | $ | 19,282 | 3.87 | % | ||||||||||||||||||||||||||||||||||||||||
Tax-equivalent adjustment | $ | 139 | 0.02 | % | $ | 106 | 0.02 | % | $ | 130 | 0.02 | % | $ | 106 | 0.02 | % | $ | 106 | 0.02 | % | ||||||||||||||||||||||||||||||||||||||||
Supplemental Information Regarding Accretion of Fair Value Marks | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accretion of fair value marks on loans | $ | 763 | 0.11 | % | $ | 1,246 | 0.19 | % | $ | 1,127 | 0.17 | % | $ | 513 | 0.10 | % | $ | 516 | 0.10 | % | ||||||||||||||||||||||||||||||||||||||||
Accretion of fair value marks on time deposits | 188 | 0.03 | % | 205 | 0.03 | % | 245 | 0.04 | % | 4 | 0.00 | % | 6 | 0.00 | % | |||||||||||||||||||||||||||||||||||||||||||||
Accretion of fair value marks on borrowings | 65 | 0.01 | % | 65 | 0.01 | % | 70 | 0.01 | % | 30 | 0.01 | % | 30 | 0.01 | % | |||||||||||||||||||||||||||||||||||||||||||||
Net interest income from fair value marks | $ | 1,016 | $ | 1,516 | $ | 1,442 | $ | 547 | $ | 552 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Effect of fair value mark accretion on tax-equivalent net interest margin | 0.15 | % | 0.23 | % | 0.22 | % | 0.11 | % | 0.11 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
* Average loans and leases include portfolio loans and leases, and loans held for sale. Non-accrual loans are also included in the average loan and leases balances.
Bryn Mawr Bank Corporation
Year-To-Date Tax-Equivalent Net Interest Margin Calculation - (unaudited)
(dollars in thousands)
For The Nine Months Ended September 30, | |||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||
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 | $ | 184,689 | 346 | 0.25 | % | $ | 72,341 | 127 | 0.23 | % | |||||||||||||||
| Investment securities available for sale: | |||||||||||||||||||||||||
Taxable | 318,510 | 3,691 | 1.55 | % | 237,053 | 2,759 | 1.56 | % | |||||||||||||||||
Tax-exempt | 37,871 | 546 | 1.93 | % | 35,853 | 453 | 1.69 | % | |||||||||||||||||
Investment securities - available for sale | 356,381 | 4,237 | 1.59 | % | 272,906 | 3,212 | 1.57 | % | |||||||||||||||||
Investment securities - trading | 3,985 | 21 | 0.70 | % | 3,519 | 33 | 1.25 | % | |||||||||||||||||
Loans and leases * | 2,131,278 | 76,548 | 4.80 | % | 1,593,718 | 58,810 | 4.93 | % | |||||||||||||||||
Total interest earning assets | 2,676,333 | 81,152 | 4.05 | % | 1,942,484 | 62,182 | 4.28 | % | |||||||||||||||||
Cash and due from banks | 17,484 | 12,371 | |||||||||||||||||||||||
Less allowance for loan and lease losses | (14,760 | ) | (15,835 | ) | |||||||||||||||||||||
Other assets | 257,896 | 153,798 | |||||||||||||||||||||||
Total assets | $ | 2,936,953 | $ | 2,092,818 | |||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||
Savings,NOW and market rate deposits | $ | 1,245,857 | $ | 1,753 | 0.19 | % | $ | 958,588 | $ | 1,254 | 0.17 | % | |||||||||||||
Wholesale deposits | 134,607 | 586 | 0.58 | % | 89,063 | 437 | 0.66 | % | |||||||||||||||||
Time deposits | 264,168 | 827 | 0.42 | % | 127,863 | 453 | 0.47 | % | |||||||||||||||||
Total interest-bearing deposits | 1,644,632 | 3,166 | 0.26 | % | 1,175,514 | 2,144 | 0.24 | % | |||||||||||||||||
Short-term borrowings | 39,352 | 39 | 0.13 | % | 14,798 | 12 | 0.11 | % | |||||||||||||||||
Long-term FHLB advances and other borrowings | 254,810 | 2,642 | 1.39 | % | 223,532 | 2,354 | 1.41 | % | |||||||||||||||||
Subordinated notes | 6,130 | 231 | 5.04 | % | - | - | - | % | |||||||||||||||||
Total Borrowings | 300,292 | 2,912 | 1.30 | % | 238,330 | 2,366 | 1.33 | % | |||||||||||||||||
Total interest-bearing liabilities | 1,944,924 | 6,078 | 0.42 | % | 1,413,844 | 4,510 | 0.43 | % | |||||||||||||||||
Noninterest-bearing deposits | 580,356 | 419,542 | |||||||||||||||||||||||
Other liabilities | 35,978 | 21,403 | |||||||||||||||||||||||
Total noninterest-bearing liabilities | 616,334 | 440,945 | |||||||||||||||||||||||
Total liabilities | 2,561,258 | 1,854,789 | |||||||||||||||||||||||
Shareholders' equity | 375,695 | 238,029 | |||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 2,936,953 | $ | 2,092,818 | |||||||||||||||||||||
Interest income to earning assets | 4.05 | % | 4.28 | % | |||||||||||||||||||||
Net interest spread | 3.63 | % | 3.85 | % | |||||||||||||||||||||
Effect of noninterest-bearing sources | 0.12 | % | 0.12 | % | |||||||||||||||||||||
Tax-equivalent net interest margin | $ | 75,074 | 3.75 | % | $ | 57,672 | 3.97 | % | |||||||||||||||||
Tax-equivalent adjustment | $ | 376 | 0.02 | % | $ | 331 | 0.02 | % | |||||||||||||||||
Supplemental Information Regarding Accretion of Fair Value Marks | |||||||||||||||||||||||||
Accretion of fair value marks on loans | $ | 3,136 | $ | 2,218 | |||||||||||||||||||||
Accretion of fair value marks on time deposits | 638 | 19 | |||||||||||||||||||||||
Accretion of fair value marks on borrowings | 200 | 91 | |||||||||||||||||||||||
Net interest income from fair value marks | $ | 3,974 | $ | 2,328 | |||||||||||||||||||||
Effect of fair value mark accretion on tax-equivalent net interest margin | 0.20 | % | 0.16 | % | |||||||||||||||||||||
* 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 lease balances
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, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||
2015 | 2015 | 2015 | 2014 | 2014 | ||||||||||||||||
Asset Quality Data | ||||||||||||||||||||
Nonaccrual loans and leases | $ | 12,315 | $ | 8,996 | $ | 9,130 | $ | 10,096 | $ | 8,336 | ||||||||||
90 days or more past due loans, still accruing | - | - | - | - | - | |||||||||||||||
Nonperforming loans and leases | 12,315 | 8,996 | 9,130 | 10,096 | 8,336 | |||||||||||||||
Other real estate owned | 1,010 | 843 | 1,532 | 1,147 | 894 | |||||||||||||||
Total nonperforming assets | $ | 13,325 | $ | 9,839 | $ | 10,662 | $ | 11,243 | $ | 9,230 | ||||||||||
Troubled debt restructurings included in nonperforming assets | $ | 3,711 | $ | 3,960 | $ | 4,217 | $ | 4,315 | $ | 1,725 | ||||||||||
Troubled debt restructurings in compliance with modified terms | 4,062 | 4,078 | 4,145 | 4,157 | 6,913 | |||||||||||||||
Total troubled debt restructurings | $ | 7,773 | $ | 8,038 | $ | 8,362 | $ | 8,472 | $ | 8,638 | ||||||||||
Nonperforming loans and leases / portfolio loans & leases | 0.55 | % | 0.42 | % | 0.44 | % | 0.61 | % | 0.51 | % | ||||||||||
Nonperforming assets / total assets | 0.45 | % | 0.33 | % | 0.36 | % | 0.50 | % | 0.43 | % | ||||||||||
Net loan and lease charge-offs / average loans and leases (annualized) | 0.04 | % | 0.04 | % | 0.16 | % | 0.17 | % | 0.10 | % | ||||||||||
Delinquency rate* - Performing and nonperforming loans and leases 30 days or more past due | 0.62 | % | 0.58 | % | 0.51 | % | 0.50 | % | 0.48 | % | ||||||||||
Performing loans and leases - 30-89 days past due | $ | 4,960 | $ | 5,233 | $ | 3,361 | $ | 2,232 | $ | 1,739 | ||||||||||
Delinquency rate* - Performing loans and leases - 30-89 days past due | 0.22 | % | 0.24 | % | 0.16 | % | 0.13 | % | 0.11 | % | ||||||||||
* as a percentage of total loans and leases | ||||||||||||||||||||
Changes in the allowance for loan and lease losses: | ||||||||||||||||||||
Balance, beginning of period | $ | 14,959 | $ | 14,296 | $ | 14,586 | $ | 15,599 | $ | 15,470 | ||||||||||
Charge-offs | (308 | ) | (312 | ) | (928 | ) | (864 | ) | (493 | ) | ||||||||||
Recoveries | 84 | 125 | 69 | 167 | 72 | |||||||||||||||
Net charge-offs | (224 | ) | (187 | ) | (859 | ) | (697 | ) | (421 | ) | ||||||||||
Provision for loan and lease losses | 1,200 | 850 | 569 | (316 | ) | 550 | ||||||||||||||
Balance, end of period | $ | 15,935 | $ | 14,959 | $ | 14,296 | $ | 14,586 | $ | 15,599 | ||||||||||
Total Allowance / Total Portfolio loans and leases | 0.71 | % | 0.69 | % | 0.68 | % | 0.88 | % | 0.95 | % | ||||||||||
Allowance on originated loans and leases / Originated loans and leases (a non-GAAP measure) | 0.88 | % | 0.88 | % | 0.90 | % | 0.94 | % | 1.01 | % | ||||||||||
(Total Allowance + Loan mark) / Total Gross portfolio loans and leases (a non-GAAP measure) | 1.52 | % | 1.60 | % | 1.61 | % | 1.27 | % | 1.36 | % | ||||||||||
Total Allowance / nonperforming loans and leases | 129.4 | % | 166.3 | % | 156.6 | % | 144.5 | % | 187.1 | % | ||||||||||
Supplemental Loan and Allowance Information Used to Calculate Non-GAAP Measures | ||||||||||||||||||||
Total Allowance | $ | 15,935 | $ | 14,959 | $ | 14,296 | $ | 14,586 | $ | 15,599 | ||||||||||
less: Allowance on acquired loans | 35 | 22 | 125 | 86 | 273 | |||||||||||||||
Allowance on originated loans and leases | $ | 15,900 | $ | 14,937 | $ | 14,171 | $ | 14,500 | $ | 15,326 | ||||||||||
Total Allowance | $ | 15,935 | $ | 14,959 | $ | 14,296 | $ | 14,586 | $ | 15,599 | ||||||||||
Loan mark on acquired loans | 18,179 | 19,816 | 19,708 | 6,422 | 6,932 | |||||||||||||||
Total Allowance + Loan mark | $ | 34,114 | $ | 34,775 | $ | 34,004 | $ | 21,008 | $ | 22,531 | ||||||||||
Total Portfolio loans and leases | $ | 2,228,764 | $ | 2,153,263 | $ | 2,088,532 | $ | 1,652,257 | $ | 1,645,238 | ||||||||||
less: Originated loans and leases | 1,804,835 | 1,692,041 | 1,571,377 | 1,535,003 | 1,516,104 | |||||||||||||||
Net acquired loans | $ | 423,929 | $ | 461,222 | $ | 517,155 | $ | 117,254 | $ | 129,134 | ||||||||||
add: Loan mark on acquired loans | 18,179 | 19,816 | 19,708 | 6,422 | 6,932 | |||||||||||||||
Gross acquired loans (excludes loan mark) | $ | 442,108 | $ | 481,038 | $ | 536,863 | $ | 123,676 | $ | 136,066 | ||||||||||
Originated loans and leases | 1,804,835 | 1,692,041 | 1,571,377 | 1,535,003 | 1,516,104 | |||||||||||||||
Total Gross portfolio loans and leases | $ | 2,246,943 | $ | 2,173,079 | $ | 2,108,240 | $ | 1,658,679 | $ | 1,652,170 | ||||||||||
Bryn Mawr Bank Corporation
Consolidated Selected Financial Data - (unaudited)
(dollars in thousands, except per share data)
September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||
2015 | 2015 | 2015 | 2014 | 2014 | ||||||||||||||||
Selected ratios (annualized): | ||||||||||||||||||||
Return on average assets | 1.00 | % | 1.12 | % | 1.04 | % | 1.28 | % | 1.21 | % | ||||||||||
Return on average shareholders' equity | 7.90 | % | 8.59 | % | 8.19 | % | 11.23 | % | 10.58 | % | ||||||||||
Return on average tangible equity (2) | 12.07 | % | 13.02 | % | 12.36 | % | 14.71 | % | 13.35 | % | ||||||||||
Tax-equivalent yield on loans and leases | 4.65 | % | 4.85 | % | 4.91 | % | 4.79 | % | 4.81 | % | ||||||||||
Tax-equivalent yield on interest-earning assets | 3.97 | % | 4.10 | % | 4.09 | % | 4.14 | % | 4.18 | % | ||||||||||
Cost of interest-bearing funds | 0.45 | % | 0.40 | % | 0.40 | % | 0.43 | % | 0.43 | % | ||||||||||
Tax-equivalent net interest margin | 3.65 | % | 3.81 | % | 3.79 | % | 3.84 | % | 3.87 | % | ||||||||||
Book value per share | $ | 21.45 | $ | 21.43 | $ | 21.26 | $ | 17.83 | $ | 18.03 | ||||||||||
Tangible book value per share | $ | 13.89 | $ | 14.08 | $ | 14.05 | $ | 13.59 | $ | 14.37 | ||||||||||
Shares outstanding at end of period | 17,166,323 | 17,786,293 | 17,777,628 | 13,769,336 | 13,730,581 | |||||||||||||||
Selected data: | ||||||||||||||||||||
Mortgage loans originated | $ | 76,169 | $ | 63,285 | $ | 35,728 | $ | 29,929 | $ | 29,861 | ||||||||||
Residential mortgage loans sold - servicing retained | $ | 30,515 | $ | 28,204 | $ | 24,569 | $ | 14,382 | $ | 16,237 | ||||||||||
Residential mortgage loans sold - servicing released | 10,579 | 9,257 | 2,644 | 92 | 539 | |||||||||||||||
Total residential mortgage loans sold | $ | 41,094 | $ | 37,461 | $ | 27,213 | $ | 14,474 | $ | 16,776 | ||||||||||
Yield on residential mortgage loans sold | 1.67 | % | 2.08 | % | 2.97 | % | 3.25 | % | 2.62 | % | ||||||||||
Residential mortgage loans serviced for others | $ | 601,999 | $ | 595,440 | $ | 591,989 | $ | 590,659 | $ | 594,156 | ||||||||||
Total wealth assets under management, administration, supervision and brokerage(1) | $ | 8,218,276 | $ | 8,536,024 | $ | 7,816,441 | $ | 7,699,908 | $ | 7,580,779 | ||||||||||
(1) Brokerage assets represent assets held at a registered broker dealer under a clearing agreement. | ||||||||||||||||||||
(2) Average tangible equity equals average shareholders' equity minus average goodwill and average other intangible assets. | ||||||||||||||||||||
For the Nine Months Ended September 30, | ||||||||||||||||||||
| 2015 | 2014 | ||||||||||||||||||
| Selected ratios (annualized): | ||||||||||||||||||||
Return on average assets | 1.05 | % | 1.33 | % | ||||||||||||||||
Return on average shareholders' equity | 8.22 | % | 11.68 | % | ||||||||||||||||
Return on average tangible equity (1) | 12.46 | % | 14.89 | % | ||||||||||||||||
Tax-equivalent yield on loans and leases | 4.80 | % | 4.93 | % | ||||||||||||||||
Tax-equivalent yield on interest-earning assets | 4.05 | % | 4.28 | % | ||||||||||||||||
Cost of interest-bearing liabilities | 0.42 | % | 0.43 | % | ||||||||||||||||
Tax-equivalent net interest margin | 3.75 | % | 3.97 | % | ||||||||||||||||
Selected data: | ||||||||||||||||||||
Residential mortgage loans originated | $ | 175,182 | $ | 87,328 | ||||||||||||||||
Residential mortgage loans sold - servicing retained | $ | 83,288 | $ | 40,477 | ||||||||||||||||
Residential mortgage loans sold - servicing released | 22,480 | 691 | ||||||||||||||||||
Total residential mortgage loans sold | $ | 105,768 | $ | 41,168 | ||||||||||||||||
(1) Average tangible equity equals average shareholders' equity minus average goodwill and average other intangible assets. | ||||||||||||||||||||
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, 2015 | As of December 31, 2014 | ||||||||||||||||||||||||||
Net | Net | |||||||||||||||||||||||||||
Amortized | Fair | Unrealized | Amortized | Fair | Unrealized | |||||||||||||||||||||||
SECURITY DESCRIPTION | Cost | Value | Gain / (Loss) | Cost | Value | Gain / (Loss) | ||||||||||||||||||||||
U.S. Treasury securities | $ | 101 | $ | 102 | $ | 1 | $ | 102 | $ | 100 | $ | (2 | ) | |||||||||||||||
Obligations of the U.S. Government and agencies | 90,927 | 91,639 | 712 | 66,881 | 66,762 | (119 | ) | |||||||||||||||||||||
State & political subdivisions - tax-free | 43,235 | 43,388 | 153 | 28,955 | 29,045 | 90 | ||||||||||||||||||||||
State & political subdivisions - taxable | 740 | 742 | 2 | - | - | - | ||||||||||||||||||||||
Mortgage-backed securities | 152,918 | 155,509 | 2,591 | 79,498 | 81,382 | 1,884 | ||||||||||||||||||||||
Collateralized mortgage obligations | 32,614 | 32,953 | 339 | 34,618 | 34,797 | 179 | ||||||||||||||||||||||
Other debt securities | 1,900 | 1,896 | (4 | ) | 1,900 | 1,900 | - | |||||||||||||||||||||
Bond mutual funds | 11,956 | 11,798 | (158 | ) | 11,956 | 11,835 | (121 | ) | ||||||||||||||||||||
Other investments | 3,587 | 3,394 | (193 | ) | 3,643 | 3,756 | 113 | |||||||||||||||||||||
Total investment portfolio available for sale | $ | 337,978 | $ | 341,421 | $ | 3,443 | $ | 227,553 | $ | 229,577 | $ | 2,024 | ||||||||||||||||
Capital Ratios | ||||||||||||||||||||||||||||
Regulatory MinimumTo BeWell | September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||||||||||||||
Bryn Mawr Trust Company | Capitalized | 2015 | 2015 | 2015 | 2014 | 2014 | ||||||||||||||||||||||
Tier I capital to risk weighted assets ("RWA") | 8.00 | % | 12.26 | % | 12.26 | % | 12.38 | % | 11.32 | % | 11.60 | % | ||||||||||||||||
Total (Tier II) capital to RWA | 10.00 | % | 12.96 | % | 12.93 | % | 13.05 | % | 12.19 | % | 12.54 | % | ||||||||||||||||
Tier I leverage ratio | 5.00 | % | 9.75 | % | 9.77 | % | 9.52 | % | 8.98 | % | 9.39 | % | ||||||||||||||||
| Tangible equity ratio | N/A | 8.84 | % | 8.54 | % | 8.42 | % | 8.19 | % | 9.21 | % | |||||||||||||||||
| Common equity Tier I capital to RWA | 4.50 | % | 12.26 | % | 12.26 | % | 12.38 | % | N/A | N/A | ||||||||||||||||||
Bryn Mawr Bank Corporation | ||||||||||||||||||||||||||||
Tier I capital to RWA | 8.00 | % | 11.85 | % | 12.77 | % | 12.63 | % | 12.00 | % | 12.05 | % | ||||||||||||||||
Total (Tier II) capital to RWA | 10.00 | % | 13.84 | % | 13.44 | % | 13.30 | % | 12.87 | % | 12.99 | % | ||||||||||||||||
Tier I leverage ratio | 5.00 | % | 9.44 | % | 10.20 | % | 9.77 | % | 9.43 | % | 9.77 | % | ||||||||||||||||
| Tangible equity ratio | N/A | 8.45 | % | 8.88 | 8.87 | % | 8.61 | % | 9.58 | % | ||||||||||||||||||
| Common equity Tier I capital to RWA | 4.50 | % | 11.85 | % | 12.77 | 12.63 | % | N/A | N/A | |||||||||||||||||||