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8-K - BRYN MAWR BANK CORPORATION -- FORM 8-K - BRYN MAWR BANK CORPd472698d8k.htm

Exhibit 99.1

 

LOGO

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 Record Earnings for 2012, Boosts Wealth Assets by 38.4% to $6.7 Billion

BRYN MAWR, Pa., January 24, 2013 - Bryn Mawr Bank Corporation (NASDAQ: BMTC), (the “Corporation”), parent of The Bryn Mawr Trust Company (the “Bank”), today reported net income of $5.3 million and diluted earnings per share of $0.40 for the three months ended December 31, 2012, as compared to net income of $5.0 million and diluted earnings per share of $0.38 for the same period in 2011. Net income for the twelve months ended December 31, 2012 was $21.1 million, or $1.60 per diluted share, as compared to net income of $19.6 million, or $1.54 per diluted share for the same period in 2011.

Net income for the twelve months ended December 31, 2012 included pre-tax due diligence and merger-related expenses of $2.6 million as compared to pre-tax due diligence and merger-related expenses of $537 thousand for the same period in 2011. Significant factors contributing to the outstanding results for the twelve months ended December 31, 2012, as compared to 2011, included a 37.5% increase in wealth management revenues and a 167.6% increase in the net gain on sale of residential mortgage loans.

Ted Peters, Chairman and Chief Executive Officer, commented, “Our strategic transactions this year, which included the acquisition of the Davidson Trust Company and the acquisition of certain loans and deposits and a branch location from the First Bank of Delaware, have begun to produce the positive results we had anticipated. In addition, our mortgage banking division has continued to produce outstanding results driven by the ongoing low-interest-rate environment.”

 

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On January 24, 2013, the Board of Directors of the Corporation declared a quarterly dividend of $0.17 per share, an increase of $0.01, or 6.3%, from the previous quarter’s dividend. The dividend is payable March 1, 2013 to shareholders of record as of February 5, 2013.

Mr. Peters continued, “I am confident in our business model and expect continued solid results in 2013, as we experience the full-year impact of our 2012 acquisitions.”

SIGNIFICANT ITEMS OF NOTE

 

   

Net income of $5.3 million for the three months ended December 31, 2012 increased $295 thousand, or 5.9%, from $5.0 million for the same period in 2011. The Corporation experienced significant increases in revenue for wealth management services and gain on sale of residential mortgage loans, as well as a substantial decrease in interest expense between the periods.

 

   

Total assets as of December 31, 2012 were $2.04 billion, as compared to $1.77 billion as of December 31, 2011. Total portfolio loans and leases of $1.40 billion, as of December 31, 2012, increased $103 million, or 8.0%, as compared to $1.30 billion as of December 31, 2011. A significant portion of the loan growth was related to the November 17, 2012 acquisition of loans from the First Bank of Delaware, which totaled $80.2 million as of December 31, 2012.

 

   

Revenue from the Wealth Management Division for the three months ended December 31, 2012 was $8.4 million, an increase of 32.7% from the $6.3 million generated in the same period in 2011. Wealth Management Division assets under management, administration, supervision and brokerage as of December 31, 2012 were $6.66 billion, an increase of $1.86 billion, or 38.4%, from December 31, 2011. The increase was partially due to the May 15, 2012 acquisition of the Davidson Trust Company, which initially added approximately $1.0 billion in assets under management, administration, supervision and brokerage. In addition, organic growth related to strategic initiatives within the division, along with market appreciation, contributed to the growth.

 

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Net interest income for the three months ended December 31, 2012 was $16.9 million, an increase of $941 thousand, or 5.9%, from $16.0 million for the same period in 2011. The increase in net interest income between the periods was related to a 4.6% increase in average portfolio loans, largely related to the acquisition of the First Bank of Delaware loans. In addition, the Corporation’s strategic decision to prepay $22.5 million of subordinated debt during the third and fourth quarters of 2012 contributed significantly to the $986 thousand decrease in interest expense for the three months ended December 31, 2012, as compared to the same period in 2011.

 

   

Non-interest income for the three months ended December 31, 2012 was $13.2 million as compared to $9.5 million for the same period in 2011, an increase of $3.7 million or 39.1%. The increase in non-interest income was attributable to the $2.1 million increase in fees for wealth management services mentioned above and a $1.7 million increase on the net gain on sale of residential mortgage loans. The volume of residential mortgage loans sold, for the three months ended December 31, 2012, increased $49.6 million, or 224.7%, from the same period in 2011.

 

   

Non-interest expense for the three months ended December 31, 2012 increased $4.4 million, to $21.1 million, as compared to $16.7 million for the same period in 2011. Contributing to this increase were a $1.3 million increase in due diligence and merger-related expenses, a $602 thousand increase in other operating expenses and a $1.4 million increase in salaries and wages between the periods. Salaries and wages increased primarily due to the acquisition of the Davidson Trust Company in May 2012 and the addition of the branch and lending staff from the First Bank of Delaware in November 2012, coupled with the increase in incentive-based compensation related to residential mortgage loan sales. The increase in other operating expenses included $338 thousand in unamortized costs and prepayment penalties related to the early extinguishment of subordinated debt during the fourth quarter of 2012.

 

   

The tax-equivalent net interest margin of 3.86% for the three months ended December 31, 2012 was a 5 basis point decrease from the 3.91% tax-equivalent net interest margin

 

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for the same period in 2011. The 5 basis point decrease was the result of increases in the average balances of both interest-earning assets and interest-bearing liabilities which were offset by declines in tax-equivalent yield earned, and rate paid, respectively, between periods.

 

   

Deposits of $1.63 billion, as of December 31, 2012, increased $252.3 million from December 31, 2011. The 18.3% increase was the result of a $165.7 million increase in money market accounts and a $73.3 million increase in non-interest-bearing accounts, partially offset by decreases of $20.0 million in wholesale non-maturity deposits and $11.1 million in wholesale time deposits between the respective dates. The First Bank of Delaware transaction initially added $70.3 million of deposits, of which $43.3 million were time deposits.

 

   

Nonperforming loans and leases as of December 31, 2012 were 1.06% of total portfolio loans and leases, as compared to 1.11% as of December 31, 2011. For the three months ended December 31, 2012, the Corporation recorded net loan and lease charge-offs of $214 thousand, as compared to net loan and lease recoveries of $43 thousand for the same period in 2011. The provision for loan and lease losses for the three months ended December 31, 2012 was $1.0 million, as compared with $1.1 million for the same period in 2011.

 

   

The allowance for loan and lease losses (the “Allowance”), as of December 31, 2012, of $14.4 million, was 1.03% of portfolio loans and leases, as compared to $12.8 million or 0.98% of portfolio loans and leases as of December 31, 2011. The $1.7 million increase in the Allowance is primarily reflective of the growth of the Corporation’s loan portfolio and management’s analysis of qualitative factors affecting the loan portfolio.

 

   

The capital ratios for the Bank and the Corporation, as shown in the table at page 15 below, indicate levels well above the regulatory minimum to be considered “well capitalized.”

 

   

On December 21, 2012, the Corporation opened its newest branch in Bala Cynwyd, Pennsylvania, just outside Philadelphia. In addition, the Corporation continues to seek opportunities to expand in the state of Delaware in order to complement the recently opened branch location on Route 202 in Wilmington, which was acquired from the First Bank of Delaware, as well as our Lau Associates and Bryn Mawr Trust of Delaware offices located in Greenville, Delaware.

 

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EARNINGS CONFERENCE CALL

The Corporation will hold an earnings conference call at 8:30 a.m. ET on Friday, January 25, 2013. Interested parties may participate by calling 1-888-317-6016, conference number 10022593. A taped replay of the conference call will be available one hour after the conclusion of the call and will remain available through February 11, 2013. The number to call for the taped replay is 1-877-344-7529 and the Replay Passcode is 10022593.

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 at http://www.bmtc.com/investor_01.cfm. An online archive of the webcast will be available within one hour of the conclusion of the call. The Corporation has also recently expanded its Investor Relations website to include added resources and information for shareholders and interested investors. Interested parties are encouraged to utilize the expanded resources of the site for more information on Bryn Mawr Bank Corporation.

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

 

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words and phrases may identify forward-looking statements. Persons reading this press release are cautioned that such statements are only predictions, and that the Corporation’s actual future results or performance may be materially different.

Such forward-looking statements involve known and unknown risks and uncertainties. A number of factors, many of which are beyond the Corporation’s control, could cause our actual results, events or developments, or industry results, to be materially different from any future results, events or developments expressed, implied or anticipated by such forward-looking statements, and so our business and financial condition and results of operations could be materially and adversely affected. Such factors include, among others, our need for capital, our ability to control operating costs and expenses, and to manage loan and lease delinquency rates; the credit risks of lending activities and overall quality of the composition of our loan, lease and securities portfolio; the impact of economic conditions, consumer and business spending habits, and real estate market conditions on our business and in our market area; changes in the levels of general interest rates, deposit interest rates, or net interest margin and funding sources; changes in banking regulations and policies and the possibility that any banking agency approvals we might require for certain activities will not be obtained in a timely manner or at all or will be conditioned in a manner that would impair our ability to implement our business plans; changes in accounting policies and practices; the inability of key third-party providers to perform their obligations to us; our ability to attract and retain key personnel; competition in our marketplace; war or terrorist activities; material differences in the actual financial results, cost savings and revenue enhancements associated with our acquisitions; 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  
     Dec 31,     Sep 30,     Jun 30,     Mar 31,     Dec 31,  
     2012     2012     2012     2012     2011  

Interest income

   $ 18,682      $ 18,081      $ 18,188      $ 18,372      $ 18,727   

Interest expense

     1,786        2,130        2,285        2,387        2,772   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net interest income

     16,896        15,951        15,903        15,985        15,955   

Provision for loan and lease losses

     1,000        1,000        1,003        1,000        1,056   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net interest income after provision for loan and lease losses

     15,896        14,951        14,900        14,985        14,899   

Fees for wealth management services

     8,365        7,993        7,211        6,229        6,306   

Loan servicing and other fees

     473        432        436        435        454   

Service charges on deposits

     654        634        609        580        654   

Net gain on sale of residential mortgage loans

     2,424        1,837        1,304        1,170        699   

Net gain on sale of available for sale investments

     283        416        716        —          373   

Net loss on sale of other real estate owned (“OREO”)

     —          (45     —          (41     (38

BOLI income

     98        108        105        118        114   

Other operating income

     873        873        1,000        1,096        909   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-interest income

     13,170        12,248        11,381        9,587        9,471   

Salaries and wages

     8,848        8,703        8,075        7,505        7,404   

Employee benefits

     2,041        1,903        2,023        2,160        1,889   

Occupancy and bank premises

     1,616        1,488        1,395        1,375        1,424   

Furniture fixtures and equipment

     961        935        940        891        938   

Advertising

     363        267        359        320        257   

Net impairment (recovery) of mortgage servicing rights

     81        105        87        (110     114   

Amortization of mortgage servicing rights

     248        243        256        219        225   

Intangible asset amortization

     673        669        560        509        522   

FDIC insurance

     255        262        234        219        218   

Due diligence and merger-related expenses

     1,190        316        914        209        (79

Professional fees

     1,031        609        571        657        647   

Other operating expenses

     3,782        3,389        2,714        2,841        3,180   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-interest expense

     21,089        18,889        18,128        16,795        16,739   

Income before income taxes

     7,977        8,310        8,153        7,777        7,631   

Income tax expense

     2,673        2,885        2,808        2,704        2,627   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 5,304      $ 5,425      $ 5,345      $ 5,073      $ 5,004   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Per share data:

          

Weighted average shares outstanding

     13,157,295        13,149,050        13,072,963        12,979,746        12,901,266   

Dilutive common shares

     205,545        146,377        158,570        147,502        99,964   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted weighted average dilutive shares

     13,362,840        13,295,427        13,231,533        13,127,248        13,001,230   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Basic earnings per common share

   $ 0.40      $ 0.41      $ 0.41      $ 0.39      $ 0.39   

Diluted earnings per common share

   $ 0.40      $ 0.41      $ 0.40      $ 0.39      $ 0.38   

Dividend declared per share

   $ 0.16      $ 0.16      $ 0.16      $ 0.16      $ 0.15   

Effective tax rate

     33.5     34.7     34.4     34.8     34.4

 

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Bryn Mawr Bank Corporation

Consolidated Statements of Income - (unaudited) **

(Dollars in thousands, except per share data)

 

     For The Twelve Months Ended  
     Dec 31,     Dec 31,  
     2012     2011  

Interest income

   $ 73,323      $ 74,562   

Interest expense

     8,588        11,661   
  

 

 

   

 

 

 

Net interest income

     64,735        62,901   

Provision for loan and lease losses

     4,003        6,088   
  

 

 

   

 

 

 

Net interest income after provision for loan and lease losses

     60,732        56,813   

Fees for wealth management services

     29,798        21,669   

Loan servicing and other fees

     1,776        1,824   

Service charges on deposits

     2,477        2,495   

Net gain on sale of residential mortgage loans

     6,735        2,517   

Net gain on sale of available for sale investments

     1,415        1,783   

BOLI income

     428        462   

Net loss on sale of other real estate owned (“OREO”)

     (86     (97

Other operating income

     3,843        3,406   
  

 

 

   

 

 

 

Non-interest income

     46,386        34,059   

Salaries and wages

     33,131        28,084   

Employee benefits

     8,127        6,889   

Occupancy and bank premises

     5,874        5,176   

Furniture fixtures and equipment

     3,727        3,509   

Advertising

     1,309        1,166   

Net impairment of mortgage servicing rights

     163        786   

Amortization of mortgage servicing rights

     966        749   

Intangible asset amortization

     2,411        1,490   

FDIC insurance

     970        1,186   

Due diligence and merger-related expenses

     2,629        537   

Professional fees

     2,868        2,311   

Other operating expenses

     12,726        9,846   
  

 

 

   

 

 

 

Non-interest expense

     74,901        61,729   

Income before income taxes

     32,217        29,143   

Income tax expense

     11,070        9,541   
  

 

 

   

 

 

 

Net income

   $ 21,147      $ 19,602   
  

 

 

   

 

 

 

Per share data:

    

Weighted average shares outstanding

     13,090,110        12,659,824   

Dilutive common shares

     151,736        82,313   
  

 

 

   

 

 

 

Adjusted weighted average shares

     13,241,846        12,742,137   
  

 

 

   

 

 

 

Basic earnings per common share

   $ 1.62      $ 1.55   

Diluted earnings per common share

   $ 1.60      $ 1.54   

Dividend declared per share

   $ 0.64      $ 0.60   

Effective tax rate

     34.4     32.7

 

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Bryn Mawr Bank Corporation

Consolidated Balance Sheets - (unaudited) **

(Dollars in thousands)

 

     Dec 31,     Sep 30,     June 30,     Mar 31,     Dec 31,  
     2012     2012     2012     2012     2011  

Assets

          

Interest bearing deposits with banks

   $ 159,483      $ 23,559      $ 68,324      $ 55,759      $ 57,369   

Investment securities - available for sale

     316,614        316,644        331,407        328,215        273,822   

Investment securities - trading

     1,447        1,399        1,342        1,556        1,436   

Loans held for sale

     3,412        3,420        1,668        5,784        1,588   

Portfolio loans:

          

Consumer

     17,666        17,342        15,920        13,644        11,429   

Commercial & industrial

     291,620        274,351        264,116        270,766        267,204   

Commercial mortgages

     546,358        472,354        445,254        430,896        419,130   

Construction

     26,908        22,161        33,815        51,274        52,844   

Residential mortgages

     288,212        301,054        304,249        306,911        306,478   

Home equity lines & loans

     194,861        195,315        202,676        202,015        207,917   

Leases

     32,831        31,136        30,549        28,974        30,390   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total portfolio loans and leases

     1,398,456        1,313,713        1,296,579        1,304,480        1,295,392   

Earning assets

     1,879,412        1,658,735        1,699,320        1,695,794        1,629,607   

Cash and due from banks

     16,203        13,526        13,147        11,939        11,771   

Allowance for loan and lease losses

     (14,424     (13,638     (13,140     (13,040     (12,753

Premises and equipment

     31,170        29,238        28,911        28,680        29,328   

Accrued interest receivable

     5,955        5,963        6,009        6,037        6,061   

Mortgage servicing rights

     4,491        4,257        4,220        4,217        4,041   

Goodwill

     32,897        29,588        29,752        24,689        24,689   

Other intangible assets

     21,998        22,351        22,855        17,504        18,014   

Bank owned life insurance (“BOLI”)

     19,862        19,765        19,658        19,552        19,434   

FHLB stock

     10,761        10,717        10,746        11,009        11,588   

Deferred income taxes

     12,303        11,478        11,432        12,991        13,845   

Other investments

     4,346        4,438        4,424        4,095        4,107   

Other assets

     10,911        18,111        16,021        12,944        13,641   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total assets

   $ 2,035,885      $ 1,814,529      $ 1,853,355      $ 1,836,411      $ 1,773,373   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Liabilities and shareholders’ equity

          

Interest-bearing checking

   $ 270,279      $ 226,206      $ 237,126      $ 235,841      $ 233,562   

Money market

     559,470        493,829        468,314        418,503        393,729   

Savings

     129,091        132,402        133,204        135,912        130,613   

Wholesale non-maturity deposits

     45,162        37,458        35,365        66,518        65,173   

Wholesale time deposits

     12,421        9,942        22,505        22,062        23,550   

Time deposits

     218,586        171,498        193,081        212,003        209,333   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Interest-bearing deposits

     1,235,009        1,071,335        1,089,595        1,090,839        1,055,960   

Non-interest bearing deposits

     399,673        327,214        336,972        334,918        326,409   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total deposits

     1,634,682        1,398,549        1,426,567        1,425,757        1,382,369   

FHLB advances and other borrowings

     161,315        155,416        169,589        164,697        147,795   

Short-term borrowings

     9,402        19,029        14,675        13,254        12,863   

Subordinated debentures

     —          15,000        22,500        22,500        22,500   

Other liabilities

     26,921        25,280        23,956        20,538        23,466   

Shareholders’ equity

     203,565        201,255        196,068        189,665        184,380   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities and shareholders’ equity

   $ 2,035,885      $ 1,814,529      $ 1,853,355      $ 1,836,411      $ 1,773,373   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

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Bryn Mawr Bank Corporation

Consolidated Quarterly Average Balance Sheets - (unaudited)

(Dollars in thousands)

 

     2012     2012     2012     2012     2011  
     4Q     3Q     2Q     1Q     4Q  

Assets

          

Interest bearing deposits with banks

   $ 91,234      $ 53,767      $ 57,734      $ 38,556      $ 56,679   

Investment securities - available for sale

     311,372        328,051        321,420        304,215        279,405   

Investment securities - trading

     1,400        1,343        1,546        1,437        1,319   

Loans held for sale

     4,047        2,972        3,810        3,935        3,888   

Portfolio loans and leases

     1,341,826        1,300,811        1,290,209        1,295,617        1,282,916   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earning assets

     1,749,879        1,686,944        1,674,719        1,643,760        1,624,207   

Cash and due from banks

     14,817        12,922        12,259        11,539        11,516   

Allowance for loan and lease losses

     (14,063     (13,337     (13,383     (13,089     (12,110

Premises and equipment

     30,189        29,077        28,866        29,095        29,586   

Goodwill

     29,642        29,751        26,201        24,688        23,186   

Other intangible assets

     22,084        22,580        21,427        17,804        18,319   

Bank owned life insurance

     19,800        19,695        19,589        19,480        19,359   

FHLB stock

     10,572        10,717        10,553        11,223        11,588   

Deferred income taxes

     11,577        13,225        13,659        13,637        13,972   

Other assets

     23,800        21,229        22,651        25,512        24,077   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total assets

   $ 1,898,297      $ 1,832,803      $ 1,816,541      $ 1,783,649      $ 1,763,700   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Liabilities and shareholders’ equity

          

Interest-bearing checking

   $ 241,730      $ 229,853      $ 236,131      $ 227,817      $ 224,648   

Money market

     516,174        486,798        436,717        406,972        394,150   

Savings

     132,725        133,315        133,105        132,451        132,617   

Wholesale non-maturity deposits

     38,932        35,956        47,463        65,117        65,127   

Wholesale time deposits

     10,689        13,809        22,280        22,354        27,749   

Time deposits

     190,332        178,711        203,344        210,973        214,684   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Interest-bearing deposits

     1,130,582        1,078,442        1,079,040        1,065,684        1,058,975   

Non-interest bearing deposits

     359,008        330,179        323,539        305,468        304,883   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total deposits

     1,489,590        1,408,621        1,402,579        1,371,152        1,363,858   

FHLB advances and other borrowings

     159,559        167,251        163,908        165,402        140,177   

Short-term borrowings

     13,243        13,273        13,149        13,885        15,147   

Subordinated debentures

     7,283        21,114        22,500        22,500        22,500   

Junior subordinated debentures

     —          —          —          —          10,294   

Other liabilities

     27,175        25,354        23,158        25,259        24,991   

Shareholders’ equity

     201,447        197,190        191,247        185,451        186,733   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities and shareholders’ equity

   $ 1,898,297      $ 1,832,803      $ 1,816,541      $ 1,783,649      $ 1,763,700   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

10


Bryn Mawr Bank Corporation

Consolidated Average Balance Sheets - (unaudited)

(Dollars in thousands)

 

     For the Twelve Months Ended December 31,  
     2012     2011  

Assets

    

Interest bearing deposits with banks

   $ 60,389      $ 52,390   

Investment securities - available for sale

     316,283        292,209   

Investment securities - trading

     1,431        1,339   

Loans held for sale

     3,743        4,196   

Portfolio loans and leases

     1,307,140        1,245,875   
  

 

 

   

 

 

 

Earning assets

     1,688,986        1,596,009   

Cash and due from banks

     12,890        12,078   

Allowance for loan and lease losses

     (13,469     (11,397

Premises and equipment

     29,309        29,439   

Goodwill

     27,582        20,961   

Intangible assets

     20,981        14,007   

Bank owned life insurance

     19,642        19,187   

FHLB stock

     10,766        12,595   

Deferred income taxes

     12,147        14,093   

Other assets

     24,167        24,714   
  

 

 

   

 

 

 

Total assets

   $ 1,833,001      $ 1,731,686   
  

 

 

   

 

 

 

Liabilities and shareholders’ equity

    

Interest-bearing checking

   $ 233,893      $ 226,831   

Money market

     461,883        364,094   

Savings

     132,899        131,925   

Wholesale non-maturity deposits

     46,815        67,793   

Wholesale time deposits

     17,256        30,429   

Time deposits

     195,778        232,084   
  

 

 

   

 

 

 

Interest-bearing deposits

     1,088,524        1,053,156   

Non-interest bearing deposits

     329,631        287,553   
  

 

 

   

 

 

 

Total deposits

     1,418,155        1,340,709   

FHLB advances and other borrowings

     163,888        145,421   

Short-term borrowings

     13,525        11,380   

Subordinated debentures

     18,327        22,500   

Junior subordinated debentures

     —          11,580   

Other liabilities

     25,242        23,573   

Shareholders’ equity

     193,864        176,523   
  

 

 

   

 

 

 

Total liabilities and shareholders’ equity

   $ 1,833,001      $ 1,731,686   
  

 

 

   

 

 

 

 

11


Bryn Mawr Bank Corporation

Consolidated Selected Financial Data - (unaudited)

(Dollars in thousands, except per share data)

December 31, 2012

 

For the period end:    2012     2012     2012     2012     2011  
     4Q     3Q     2Q     1Q     4Q  

Asset Quality Data

          

Nonaccrual loans and leases

   $ 14,040      $ 13,816      $ 14,929      $ 22,570      $ 14,315   

90 days or more past due loans, still accruing

     728        —          3,376        —          —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Nonperforming loans and leases

     14,768        13,816        18,305        22,570        14,315   

Other real estate owned

     906        412        865        404        549   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total nonperforming assets

   $ 15,674      $ 14,228      $ 19,170      $ 22,974      $ 14,864   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Troubled debt restructurings included in nonperforming

   $ 3,106      $ 3,740      $ 4,005      $ 4,223      $ 4,300   

Troubled debt restructurings in compliance with modified terms

     8,008        8,379        8,302        7,970        7,166   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total troubled debt restructurings

   $ 11,114      $ 12,119      $ 12,307      $ 12,193      $ 11,466   

Nonperforming loans and leases / portfolio loans

     1.06     1.05     1.41     1.73     1.11

Nonperforming assets / assets

     0.77     0.78     1.03     1.25     0.84

Net loan charge-offs (recoveries) / average loans (annualized)

     0.08     0.16     0.26     0.21     –0.02

Net lease (recoveries) charge-offs / average leases (annualized)

     –0.38     –0.23     0.94     0.67     0.22

Net loan and lease charge-offs (recoveries) / average loans and leases (annualized)

     0.07     0.16     0.28     0.23     –0.01

Delinquency rate - loans and leases 30 days or more past due

     1.02     1.01     1.36     1.52     1.37

Delinquent loans and leases - 30-89 days past due

   $ 2,053      $ 1,954      $ 2,722      $ 5,468      $ 5,311   

Delinquency rate - loans and leases 30-89 days past due

     0.15     0.15     0.21     0.28     0.29

Changes in the allowance for loan and lease losses:

          

Balance, beginning of period

   $ 13,638      $ 13,140      $ 13,040      $ 12,753      $ 11,654   

Charge-offs

     (451     (618     (960     (839     (466

Recoveries

     237        116        57        126        509   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net (charge-offs) / recoveries

     (214     (502     (903     (713     43   

Provision for loan and lease losses

     1,000        1,000        1,003        1,000        1,056   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance, end of period

   $ 14,424      $ 13,638      $ 13,140      $ 13,040      $ 12,753   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Allowance for loan and lease losses / loans and leases

     1.03     1.04     1.01     1.00     0.98

Allowance for loan and lease losses / nonperforming loans and leases

     97.7     98.7     71.8     57.8     89.1

 

12


Bryn Mawr Bank Corporation

Consolidated Selected Financial Data - (unaudited)

(Dollars in thousands, except per share data)

December 31, 2012

 

For the period and period end:    2012     2012     2012     2012     2011  
     4Q     3Q     2Q     1Q     4Q  

Selected ratios (annualized):

          

Return on average assets

     1.11     1.18     1.18     1.14     1.13

Return on average shareholders’ equity

     10.47     10.93     11.24     11.00     10.63

Return on average tangible equity (2)

     14.09     14.89     14.97     14.27     13.67

Yield on loans and leases*

     5.24     5.21     5.31     5.33     5.45

Yield on interest earning assets*

     4.27     4.28     4.39     4.51     4.59

Cost of interest bearing funds

     0.54     0.66     0.72     0.76     0.88

Net interest margin*

     3.86     3.78     3.84     3.93     3.91

Book value per share

   $ 15.17      $ 15.02      $ 14.73      $ 14.40      $ 14.07   

Tangible book value per share

   $ 11.08      $ 11.14      $ 10.77      $ 11.20      $ 10.78   

Period end shares outstanding

     13,414,552        13,399,635        13,316,469        13,168,555        13,106,353   

Selected data:

          

Mortgage loans originated

   $ 82,458      $ 64,455      $ 51,427      $ 55,385      $ 60,467   

Mortgage loans sold - servicing retained

   $ 71,596      $ 54,992      $ 41,986      $ 32,778      $ 20,883   

Mortgage loans sold - servicing released

     —          —          2,238        1,223        1,164   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total mortgage loans sold

   $ 71,596      $ 54,992      $ 44,224      $ 34,001      $ 22,047   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Yield on loans sold

     3.39     3.34     2.95     3.44     3.17

Mortgage loans serviced for others

   $ 595,317      $ 583,859      $ 575,533      $ 571,440      $ 574,422   

Total wealth assets under management / administration / supervision / brokerage (1)

   $ 6,663,212      $ 6,482,835      $ 6,275,940      $ 5,152,965      $ 4,831,631   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

* Yield on loans and leases, interest earning assets and net interest margin are calculated on a tax-equivalent basis.
(1) 

Brokerage Assets represent assets held at a registered broker dealer under a networking agreement.

(2) 

Average tangible equity equals average shareholders’ equity minus average goodwill and average other intangible assets.

 

13


Bryn Mawr Bank Corporation

Consolidated Selected Financial Data - (unaudited)

(Dollars in thousands, except per share data)

December 31, 2012

 

     2012     2011  
     Year-to-date     Year-to-date  

Selected ratios (annualized):

    

Return on average assets

     1.15     1.14

Return on average shareholders’ equity

     10.91     11.08

Return on average tangible equity (2)

     14.55     13.85

Yield on loans and leases*

     5.27     5.56

Yield on interest-earning assets*

     4.36     4.69

Cost of interest-bearing funds

     0.67     0.94

Net interest margin*

     3.85     3.97

Selected data:

    

Mortgage loans originated

   $ 253,725      $ 168,681   

Mortgage loans sold - servicing retained

   $ 201,352      $ 75,232   

Mortgage loans sold - servicing released

     3,461        6,230   
  

 

 

   

 

 

 

Total mortgage loans sold

   $ 204,813      $ 81,462   
  

 

 

   

 

 

 

 

* Yield on loans and leases, interest earning assets and net interest margin are calculated on a tax-equivalent basis.
(2) 

Average tangible equity equals average shareholders’ equity minus average goodwill and average other intangible assets.

 

Investment Portfolio - AFS    As of December 31, 2012      As of December 31, 2011  
($‘s in thousands)              

SECURITY DESCRIPTION

   Amortized
Cost
     Fair
Value
     Net
Unrealized
Gain / (Loss)
     Amortized
Cost
     Fair
Value
     Net
Unrealized
Gain / (Loss)
 

Obligations of U. S. government and agencies

   $ 73,183       $ 73,872       $ 689       $ 104,252       $ 104,570       $ 318   

State & political subdivisions

     30,243         30,384         141         8,210         8,366         156   

Mortgage backed securities

     128,537         131,826         3,289         95,713         97,834         2,121   

Collateralized mortgage obligations

     62,116         62,703         587         32,418         32,623         205   

Other debt securities

     1,900         1,900         —           1,900         1,882         (18

Bond - mutual funds

     11,456         11,527         71         12,091         11,904         (187

Investment CDs

     2,350         2,364         14         2,411         2,420         9   

Other investments

     1,962         2,038         76         1,454         1,505         51   

Corporate bonds

     —           —           —           12,616         12,718         102   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Investment Portfolio

   $ 311,747       $ 316,614       $ 4,867       $ 271,065       $ 273,822       $ 2,757   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

Capital Ratios                                     
     Regulatory Minimum
To Be
Well Capitalized
    12/31/2012     9/30/2012     6/30/2012     3/31/2012     12/31/2011  

Bryn Mawr Trust Company Consolidated

            

Tier I Capital to Risk Weighted Assets (RWA)

     6.00     11.20     11.99     11.75     12.17     11.76

Total (Tier II) Capital to RWA

     10.00     12.20     14.09     14.36     14.78     14.35

Tier I Leverage Ratio

     5.00     8.84     9.23     9.14     9.56     9.35

Tangible Equity Ratio

       7.72     8.85     8.41     8.70     8.66

Bryn Mawr Bank Corporation

            

Tier I Capital to Risk Weighted Assets (RWA)

     6.00     11.03     11.64     11.30     11.52     11.16

Total (Tier II) Capital to RWA

     10.00     12.02     13.74     13.90     14.23     13.74

Tier I Leverage Ratio

     5.00     8.72     8.98     8.80     9.07     8.89

Tangible Equity Ratio

       7.60     8.58     8.07     8.22     8.19

 

14


Bryn Mawr Bank Corporation

Quarterly Average Balances and Tax-Equivalent Income and Expense and Tax Equivalent Yields - (unaudited)

 

    4th Quarter 2012     3rd Quarter 2012     2nd Quarter 2012     1st Quarter 2012     4th Quarter 2011  
(dollars in thousands)   Average
Balance
    Interest
Income/
Expense
    Average
Rates
Earned/
Paid
    Average
Balance
    Interest
Income/
Expense
    Average
Rates
Earned/
Paid
    Average
Balance
    Interest
Income/
Expense
    Average
Rates
Earned/
Paid
    Average
Balance
    Interest
Income/
Expense
    Average
Rates
Earned/
Paid
    Average
Balance
    Interest
Income/
Expense
    Average
Rates
Earned/
Paid
 

Assets:

                             

Interest-bearing deposits with other banks

  $ 91,234      $ 41        0.18   $ 53,767      $ 34        0.25   $ 57,734      $ 30        0.21   $ 38,556      $ 23        0.24   $ 56,679      $ 27        0.19

Investment securities available for sale:

                             

Taxable

    286,889        897        1.24     309,570        960        1.23     307,371        1,067        1.40     294,593        1,136        1.55     272,869        1,055        1.53

Tax-exempt

    24,483        102        1.66     18,481        82        1.77     14,049        66        1.89     9,622        53        2.22     6,536        31        1.88
 

 

 

   

 

 

     

 

 

   

 

 

     

 

 

   

 

 

     

 

 

   

 

 

     

 

 

   

 

 

   

Investment securities available for sale

    311,372        999        1.28     328,051        1,042        1.26     321,420        1,133        1.42     304,215        1,189        1.57     279,405        1,086        1.54

Investment securities - trading

    1,400        16        4.55     1,343        5        1.48     1,546        12        3.12     1,437        4        1.12     1,319        8        2.41

Loans and leases *

    1,345,873        17,721        5.24     1,303,783        17,089        5.21     1,294,019        17,094        5.31     1,299,552        17,234        5.33     1,286,804        17,672        5.45
 

 

 

   

 

 

     

 

 

   

 

 

     

 

 

   

 

 

     

 

 

   

 

 

     

 

 

   

 

 

   

Total interest earning assets

    1,749,879        18,777        4.27     1,686,944        18,170        4.28     1,674,719        18,269        4.39     1,643,760        18,450        4.51     1,624,207        18,793        4.59

Cash and due from banks

    14,817            12,922            12,259            11,539            11,516       

Less allowance for loan and lease losses

    (14,063         (13,337         (13,383         (13,089         (12,110    

Other assets

    147,664            146,274            142,946            141,439            140,087       
 

 

 

       

 

 

       

 

 

       

 

 

       

 

 

     

Total assets

  $ 1,898,297          $ 1,832,803          $ 1,816,541          $ 1,783,649          $ 1,763,700       
 

 

 

       

 

 

       

 

 

       

 

 

       

 

 

     

Liabilities:

                             

Savings, NOW and market rate deposits

  $ 890,629      $ 557        0.25   $ 849,966      $ 567        0.27   $ 805,953      $ 586        0.29   $ 767,240      $ 559        0.29   $ 751,415      $ 711        0.38

Other wholesale deposits

    38,932        38        0.39     35,956        34        0.38     47,463        43        0.36     65,117        53        0.33     65,127        50        0.30

Wholesale deposits

    10,689        20        0.74     13,809        21        0.60     22,280        24        0.43     22,354        24        0.43     27,749        73        1.04

Time deposits

    190,332        290        0.61     178,711        316        0.70     203,344        412        0.81     210,973        490        0.93     214,684        520        0.96
 

 

 

   

 

 

     

 

 

   

 

 

     

 

 

   

 

 

     

 

 

   

 

 

     

 

 

   

 

 

   

Total interest-bearing deposits

    1,130,582        905        0.32     1,078,442        938        0.35     1,079,040        1,065        0.40     1,065,684        1,126        0.42     1,058,975        1,354        0.51

Subordinated debentures

    7,283        79        4.32     21,114        271        5.11     22,500        291        5.20     22,500        291        5.20     22,500        287        5.06

Junior subordinated debentures

    —          —          —   %        —          —          —   %        —          —          —   %        —          —          —   %        10,294        236        9.10

Short-term borrowings

    13,243        3        0.09     13,273        4        0.12     13,149        5        0.15     13,885        6        0.17     15,147        6        0.16

FHLB advances and other borrowings

    159,559        798        1.99     167,251        918        2.18     163,908        924        2.27     165,402        964        2.34     140,177        889        2.52
 

 

 

   

 

 

     

 

 

   

 

 

     

 

 

   

 

 

     

 

 

   

 

 

     

 

 

   

 

 

   

Total Borrowings

    180,085        880        1.94     201,638        1,193        2.35     199,557        1,220        2.46     201,787        1,261        2.51     188,118        1,418        2.99

Total interest-bearing liabilities

    1,310,667        1,785        0.54     1,280,080        2,131        0.66     1,278,597        2,285        0.72     1,267,471        2,387        0.76     1,247,093        2,772        0.88

Noninterest-bearing deposits

    359,008            330,179            323,539            305,468            304,883       

Other liabilities

    27,175            25,100            23,158            25,259            24,991       
 

 

 

       

 

 

       

 

 

       

 

 

       

 

 

     

Total noninterest-bearing liabilities

    386,183            355,279            346,697            330,727            329,874       

Total liabilities

    1,696,850            1,635,359            1,625,294            1,598,198            1,576,967       

Shareholders’ equity

    201,447            197,444            191,247            185,451            186,733       
 

 

 

       

 

 

       

 

 

       

 

 

       

 

 

     

Total liabilities and shareholders’ equity

  $ 1,898,297          $ 1,832,803          $ 1,816,541          $ 1,783,649          $ 1,763,700       
 

 

 

       

 

 

       

 

 

       

 

 

       

 

 

     

Interest income to earning assets

        4.27         4.28         4.39         4.51         4.59

Net interest spread

        3.73         3.62         3.67         3.75         3.71

Effect of noninterest-bearing sources

        0.13         0.16         0.17         0.18         0.20
   

 

 

   

 

 

     

 

 

   

 

 

     

 

 

   

 

 

     

 

 

   

 

 

     

 

 

   

 

 

 

Tax-equivalent net interest income/ margin on earning assets

    $ 16,992        3.86     $ 16,039        3.78     $ 15,984        3.84     $ 16,063        3.93     $ 16,021        3.91
   

 

 

   

 

 

     

 

 

   

 

 

     

 

 

   

 

 

     

 

 

   

 

 

     

 

 

   

 

 

 

Tax-equivalent adjustment

    $ 96        0.02     $ 88        0.02     $ 81        0.02     $ 78        0.02     $ 66        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.

 

15


Bryn Mawr Bank Corporation

Average Balances and Tax-Equivalent Income and Expense and Tax-Equivalent Yields

For the Twelve Months ended December 31,

 

     2012                  2011               
(dollars in thousands)    Average
Balance
    Interest
Income/
Expense
     Average
Rates
Earned/
Paid
    Average
Balance
    Interest
Income/
Expense
     Average
Rates
Earned/
Paid
 

Assets:

              

Interest-bearing deposits with other banks

   $ 60,389        126         0.21   $ 52,390      $ 115         0.22

Investment securities available for sale:

              

Taxable

     299,598        4,064         1.36     281,970        4,879         1.73

Tax-exempt

     16,685        298         1.79     10,239        318         3.11
  

 

 

   

 

 

      

 

 

   

 

 

    

Investment securities - available for sale

     316,283        4,362         1.38     292,209        5,197         1.78

Investment securities - trading

     1,431        37         2.59     1,339        32         2.39

Loans and leases *

     1,310,883        69,141         5.27     1,250,071        69,554         5.56
  

 

 

   

 

 

      

 

 

   

 

 

    

Total interest earning assets

     1,688,986        73,666         4.36     1,596,009        74,898         4.69

Cash and due from banks

     12,890             12,078        

Less allowance for loan and lease losses

     (13,469          (11,397     

Other assets

     144,594             134,996        
  

 

 

        

 

 

      

Total assets

   $ 1,833,001           $ 1,731,686        
  

 

 

        

 

 

      

Liabilities:

              

Savings, NOW and market rate deposits

   $ 828,675      $ 2,269         0.27   $ 722,850      $ 2,958         0.41

Other wholesale deposits

     46,815        169         0.36     67,793        224         0.33

Wholesale deposits

     17,256        88         0.51     30,429        321         1.05

Time deposits

     195,778        1,507         0.77     232,084        2,285         0.98
  

 

 

   

 

 

      

 

 

   

 

 

    

Total interest-bearing deposits

     1,088,524        4,033         0.37     1,053,156        5,788         0.55

FHLB advances and other borrowings

     163,888        3,603         2.20     145,421        3,677         2.53

Short-term borrowings

     13,525        21         0.16     11,380        24         0.21

Subordinated debt

     18,327        931         5.08     22,500        1,123         4.99

Junior subordinated debentures

     —          —           —          11,580        1,049         9.06
  

 

 

   

 

 

      

 

 

   

 

 

    

Total Borrowings

     195,740        4,555         2.33     190,881        5,873         3.08

Total interest-bearing liabilities

     1,284,264        8,588         0.67     1,244,037        11,661         0.94

Noninterest-bearing deposits

     329,631             287,553        

Other liabilities

     25,242             23,573        
  

 

 

        

 

 

      

Total noninterest-bearing liabilities

     354,873             311,126        

Total liabilities

     1,639,137             1,555,163        

Shareholders’ equity

     193,864             176,523        
  

 

 

        

 

 

      

Total liabilities and shareholders’ equity

   $ 1,833,001           $ 1,731,686        
  

 

 

        

 

 

      

Interest income to earning assets

          4.36          4.70

Net interest spread

          3.69          3.76

Effect of noninterest-bearing sources

          0.16          0.21
    

 

 

    

 

 

     

 

 

    

 

 

 

Tax-equivalent net interest income/ margin on earning assets

     $ 65,078         3.85     $ 63,237         3.97
    

 

 

    

 

 

     

 

 

    

 

 

 

Tax-equivalent adjustment

     $ 343         0.02     $ 336         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.

 

16


** Effect of Correction of an Immaterial Accounting Error

In September 2012, the Corporation identified and corrected an immaterial accounting error related to two of its deferred compensation plans, as disclosed in the Corporation’s Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on November 9, 2012. All periods presented in the tables accompanying this earnings release have been revised to reflect this correction. The following tables detail the corrections:

Income Statement Effect

(dollars in thousands except share data)

 

 

 

 

 

 

 

 

 

 

    For The Three Months Ended June 30, 2012     For The Three Months Ended March 31, 2012     For The Three Months Ended December 31, 2011  
    Originally
Reported
    Corrected     Difference     Originally
Reported
    Corrected     Difference     Originally
Reported
    Corrected     Difference  

Net Income

  $ 5,261      $ 5,345      $ 84      $ 5,235      $ 5,074      $ (161   $ 5,170      $ 5,004      $ (166

Basic earnings per common share

  $ 0.40      $ 0.41      $ 0.01      $ 0.40      $ 0.39      $ (0.01   $ 0.40      $ 0.39      $ (0.01

Diluted earnings per common share

  $ 0.40      $ 0.40      $ —        $ 0.40      $ 0.39      $ (0.01   $ 0.39      $ 0.39      $ —     

 

     For The Twelve Months Ended December 31, 2011  
     Originally
Reported
     Corrected      Difference  

Net Income

   $ 19,713       $ 19,602       $ (111

Basic earnings per common share

   $ 1.55       $ 1.55       $ —     

Diluted earnings per common share

   $ 1.54       $ 1.54       $ —     

Balance Sheet Effect

(dollars in thousands except share data)

 

     As of June 30, 2012     As of March 31, 2012     As of December 31, 2011  
     Originally
Reported
     Corrected      Difference     Originally
Reported
     Corrected      Difference     Originally
Reported
     Corrected      Difference  

Total assets

   $ 1,854,885       $ 1,853,355       $ (1,530   $ 1,838,075       $ 1,836,411       $ (1,664   $ 1,774,907       $ 1,773,373       $ (1,534

Retained earnings

   $ 132,837       $ 132,420       $ (417   $ 129,702       $ 129,201       $ (501   $ 126,582       $ 126,242       $ (340

Cost of treasury stock

   $ 29,789       $ 30,901       $ 1,112      $ 29,833       $ 30,995       $ 1,162      $ 29,833       $ 31,027       $ 1,194   

Shares of treasury stock

     2,905,293         2,988,561         83,268        2,909,542         2,995,681         86,139        2,909,542         2,997,628         88,086   

 

17