Bryn Mawr Bank Corporation Reports Record Earnings of $27.8 Million for 2014, Record Wealth Assets of $7.7 Billion, Declares Dividend of $0.19

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BRYN MAWR, Pa., Jan. 22, 2015 (GLOBE NEWSWIRE) -- Bryn Mawr Bank Corporation BMTC, (the "Corporation"), parent of The Bryn Mawr Trust Company (the "Bank"), today reported net income of $7.0 million and diluted earnings per share of $0.51 for the three months ended December 31, 2014, as compared to net income of $6.5 million and diluted earnings per share of $0.47 for the same period in 2013. Net income for the three months ended December 31, 2014 included pre-tax due diligence and merger-related expenses of $957 thousand as compared to $155 thousand for the same period in 2013.

Net income for the twelve months ended December 31, 2014 was $27.8 million, or $2.01 per diluted share, as compared to $24.4 million, or $1.80 per diluted share, for the same period in 2013. Net income for the twelve months ended December 31, 2014 included pre-tax due diligence and merger-related expenses of $2.4 million as compared to $1.9 million for the same period in 2013.

Significant factors contributing to the results for the three months ended December 31, 2014, as compared to the same period in 2013, included a decrease in provision for loan losses and increases in the net gain on sale of available for sale investment securities, net interest income and wealth management revenue between the periods. These improvements were offset by increases in due diligence and merger-related expenses, salaries and wages and furniture, fixtures and equipment expense related to system upgrades.

"We are very pleased to close out the year with another strong quarter," commented Frank Leto, President and Chief Executive Officer. "As we look forward to 2015, with the many challenges ahead, we are confident that the combination of a strong wealth management division, experienced lending staff, excellent credit quality and our recently expanded branch network will enable us to continue to produce strong results," Mr. Leto continued.

The previously announced merger with Continental Bank Holdings, Inc. ("CBH") was completed on January 1, 2015. Mr. Leto noted, "As a result of the thorough planning and preparation conducted in the months leading up to the CBH merger, the transaction closed on schedule and we are now poised to take advantage of the opportunities that our expanded presence in Montgomery County and our new presence in the City of Philadelphia provide."

On January 22, 2015, the Board of Directors of the Corporation declared a quarterly dividend of $0.19 per share, payable March 1, 2015 to shareholders of record as of February 3, 2015.

SIGNIFICANT ITEMS OF NOTE

Results of Operations – 4th Quarter 2014 Compared to 4th Quarter 2013

  • Net income of $7.0 million for the three months ended December 31, 2014 increased $573 thousand, or 8.9%, from $6.5 million for the same period in 2013.
  • Net interest income for the three months ended December 31, 2014 was $19.5 million, an increase of $362 thousand, or 1.9%, from $19.1 million for the same period in 2013. The increase in net interest income between the periods was largely the result of a $131.8 million, or 8.7%, increase in average portfolio loans for the three months ended December 31, 2014 as compared to the same period in 2013. Partially offsetting this loan growth was a decrease in average available for sale investment securities of $57.8 million for the three months ended December 31, 2014 as compared to the same period in 2013. In addition to the decrease in the investment portfolio, average long-term borrowings increased by $33.1 million, or 16.1%, and average interest-bearing deposits increased $58.5 million, or 5.1%, for the three months ended December 31, 2014 as compared to the same period in 2013.
  • The tax-equivalent net interest margin of 3.84% for the three months ended December 31, 2014 was a 19 basis point decrease from 4.03% for the same period in 2013. The decrease was primarily the result of a 23 basis point decline in yield on portfolio loans and a 3 basis point increase in rate paid on interest-bearing liabilities. The decline in yield on portfolio loans was partially related to the impact of fair value accounting for acquired loans which increased the tax-equivalent yield on loans during the three months ended December 31, 2014 by 10 basis points, as compared to an 18 basis point increase for the same period in 2013. Lessening the impact of these unfavorable yield and rate changes was a $134.0 million increase in average interest-earning assets offset by an $85.6 million increase in average interest-bearing liabilities for the three months ended December 31, 2014 as compared to the same period in 2013.
  • Non-interest income for the three months ended December 31, 2014 increased $648 thousand as compared to the same period in 2013. Largely responsible for this increase was the $390 thousand gain on sale of available for sale investment securities for the three months ended December 31, 2014, as compared to $10 thousand loss for the same period in 2013. The increase in gain on sale in available for sale investment securities resulted from the sale of mortgage backed securities in order to shorten the duration of the Corporation's investment portfolio in anticipation of the addition of a longer-duration portfolio from the CBH merger. In addition, revenue from the Wealth Management Division remains strong, with a $157 thousand increase for the fourth quarter of 2014 as compared to the same period in 2013. Wealth Management Division assets under management, administration, supervision and brokerage as of December 31, 2014 were $7.7 billion, an increase of $432 million, or 5.9%, from December 31, 2013. This increase was driven by organic growth as a result of the division's strategic initiatives and other new business, along with some market appreciation.
  • Non-interest expense for the three months ended December 31, 2014 increased $1.3 million, to $21.9 million, as compared to $20.7 million for the same period in 2013. Largely contributing to the increase was an $802 thousand increase in due diligence and merger-related expenses related to both the CBH merger and the October 1, 2014 acquisition of Powers Craft Parker and Beard ("PCPB"). In addition to the increase in merger costs, furniture, fixtures and equipment costs increased by $341 thousand for the three months ended December 31, 2014 as compared to the same period in 2013, as several infrastructure improvement projects were completed and began amortizing. Also, salaries and wages increased by $431 thousand, largely related to the addition of the PCPB staff.
  • Nonperforming loans and leases of $10.1 million as of December 31, 2014 were 0.61% of total portfolio loans and leases, as compared to $10.5 million, or 0.68% of total portfolio loans and leases as of December 31, 2013. For the three months ended December 31, 2014, the Corporation recorded net loan and lease charge-offs of $697 thousand, as compared to $324 thousand for the same period in 2013. The provision for loan and lease losses (the "Provision") for the three months ended December 31, 2014 was a release of $316 thousand, as compared to a Provision of $812 thousand for the same period in 2013.

Results of Operations – 4th Quarter 2014 Compared to 3rd Quarter 2014

  • Net income of $7.0 million for the three months ended December 31, 2014 increased $538 thousand, or 8.3%, from $6.5 million for the three months ended September 30, 2014.
  • Net interest income for the three months ended December 31, 2014 was $19.5 million, an increase of $311 thousand, or 1.6%, from $19.2 million for the three months ended September 30, 2014. The tax-equivalent yield earned on interest-earning assets declined by 4 basis points between periods, however a $49.1 million increase in average interest-earning assets partially offset by a $28.9 million increase in average interest-bearing liabilities between periods resulted in the increase in net interest income.
  • The tax-equivalent net interest margin of 3.84% for the three months ended December 31, 2014 was a 3 basis point decrease from 3.87% for the three months ended September 30, 2014. The decrease was primarily related to the 2 basis point decrease in yield earned on portfolio loans.
  • Non-interest income for the three months ended December 31, 2014 increased $1.3 million as compared to the three months ended September 30, 2014. The increase was comprised of increases of $680 thousand in other operating income, $390 thousand in gain on sale of available for sale investment securities and $164 thousand in wealth management revenue. The increase in other operating income was related to insurance commissions generated by PCPB, the insurance subsidiary acquired by the Corporation on October 1, 2014. The increase in gain on sale of available for sale investment securities resulted from the sale of mortgage backed securities in order to shorten the duration of the Corporation's investment portfolio in anticipation of the addition of a longer-duration portfolio from the CBH merger. The increase in revenue from wealth management services was driven by organic growth as a result of the division's strategic initiatives and other new business, along with some market appreciation.
  • Non-interest expense for the three months ended December 31, 2014 increased $2.0 million, to $21.9 million, as compared to $19.9 million for the three months ended September 30, 2014. The increase between the periods was partially related to an increase of $1.0 million in salaries and employee benefits. The increase in salaries and employee benefits was related to the addition of the PCPB staff, which joined the Corporation on October 1, 2014, as well as year-end accruals of incentives and bonuses. Furniture, fixtures and equipment expense increased by $280 thousand as several infrastructure improvement projects were completed and began amortizing during the fourth quarter of 2014. Due diligence and merger-related expenses increased by $182 thousand related to the CBH and PCPB transactions and charitable contributions increased by $192 thousand for the three months ended December 31, 2014 as compared to the three months ended September 30, 2014.
  • Nonperforming loans and leases of $10.1 million as of December 31, 2014 were 0.61% 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 December 31, 2014, the Corporation recorded net loan and lease charge-offs of $697 thousand, as compared to $421 thousand for the three months ended September 30, 2014. The Provision for the three months ended December 31, 2014 was a release of $316 thousand, as compared to a Provision of $550 thousand for the three months ended September 30, 2014, a decrease of $866 thousand.

Financial Condition – December 31, 2014 Compared to December 31, 2013

  • Total portfolio loans and leases of $1.65 billion as of December 31, 2014 increased by $105.1 million, or 6.8%, from December 31, 2013, with residential mortgages, commercial mortgages, and construction loans accounting for a majority of the increase.
  • The allowance for loan and lease losses (the "Allowance") as of December 31, 2014 was $14.6 million, or 0.88% of portfolio loans as compared to $15.5 million, or 1.00% of portfolio loans and leases, as of December 31, 2013. The decrease in Allowance as a percentage of loans was the result of partial charge-offs of impaired loans which had previously been specifically provided for, as well as improving credit quality metrics and positive economic indicators.
  • Total assets as of December 31, 2014 were $2.25 billion, an increase of $184.8 million from December 31, 2013. Increases in loan balances and interest-bearing deposits with other banks, partially offset by decreases in available for sale investment securities, accounted for the majority of this increase, with funding for loan originations provided by increased deposits and borrowings.
  • Deposits of $1.69 billion, as of December 31, 2014, increased $96.7 million from December 31, 2013. The increase was comprised of a $38.8 million increase in wholesale time deposits, a $23.8 million increase in wholesale non-maturity deposits, a $20.3 million increase in non-interest-bearing deposits and a $36.2 million increase in other core deposits. These increases were partially offset by decreases of $22.4 million in retail time deposits between December 31, 2013 and December 31, 2014.
  • The capital ratios for the Bank and the Corporation, as shown in the attached tables, indicate levels well above the regulatory minimum to be considered "well capitalized." The tangible equity ratios for both the Bank and the Corporation have decreased from their December 31, 2013 levels of 8.78% and 8.92%, to 8.19% and 8.61%, respectively, at December 31, 2014. These decreases were primarily related to an increase in other comprehensive losses in the Corporation's pension plans which were partially offset by increases in retained earnings and unrealized gains on available for sale investment securities.

EARNINGS CONFERENCE CALL

The Corporation will hold an earnings conference call at 8:30 a.m. EDT on Friday, January 23, 2015. Interested parties may participate by dialing (toll-free) 1-877-504-8812 (international (toll) 1-412-902-6656). A taped replay of the conference call will be available one hour after the conclusion of the call and will remain available through February 6, 2015. The taped replay may be accessed by dialing (toll-free) 1-877-344-7529 (international (toll) 1-412-317-0088) and the conference number is 10057169.

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://services.choruscall.com/links/bmtc150123.html. An online archive of the webcast will be available within one hour of the conclusion of the call. The Corporation has also recently expanded its Investor Relations website to include added resources and information for shareholders and interested investors. Interested parties are encouraged to utilize the expanded resources of the site for more information on Bryn Mawr Bank Corporation.

FORWARD LOOKING STATEMENTS AND SAFE HARBOR

This press release contains statements which, to the extent that they are not recitations of historical fact may constitute forward-looking statements for purposes of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. Such forward-looking statements may include financial and other projections as well as statements regarding the Corporation's future plans, objectives, performance, revenues, growth, profits, operating expenses or the Corporation's underlying assumptions. The words "may,"  "would," "should," "could," "will," "likely," "possibly," "expect," "anticipate," "intend," "estimate," "target," "potentially," "probably," "outlook," "predict," "contemplate," "continue," "plan," "forecast," "project," "are optimistic," "are looking," "are looking forward" and "believe" or other similar words and phrases may identify forward-looking statements. Persons reading this press release are cautioned that such statements are only predictions, and that the Corporation's actual future results or performance may be materially different.

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 CBH'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 well as any changes in risk factors that we may identify in our quarterly or other reports 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
  December 31, September 30, June 30, March 31, December 31,
  2014 2014 2014 2014 2013
           
Interest income  $ 21,055  $ 20,749  $ 20,941  $ 20,161  $ 20,525
Interest expense  1,568  1,573  1,499  1,438  1,400
           
Net interest income  19,487  19,176  19,442  18,723  19,125
Provision for loan and lease losses  (316)  550  (100)  750  812
Net interest income after provision for loan and lease losses  19,803  18,626  19,542  17,973  18,313
           
Fees for wealth management services  9,263  9,099  9,499  8,913  9,106
Loan servicing and other fees  450  431  428  446  465
Service charges on deposits  658  663  656  601  638
Net gain on sale of residential mortgage loans  471  440  537  324  529
Net gain (loss) on sale of investment securities available for sale  390  --  85  (4)  (10)
Net gain (loss) on sale of other real estate owned  4  (49)  220  --  (106)
Bank owned life insurance income  84  76  74  81  88
Other operating income  1,563  883  1,258  778  1,525
Non-interest income  12,883  11,543  12,757  11,139  12,235
           
Salaries and wages  9,869  9,110  9,694  8,440  9,438
Employee benefits  1,900  1,652  1,809  1,979  2,399
Occupancy and bank premises  1,808  1,881  1,683  1,933  1,738
Furniture fixtures and equipment  1,358  1,078  1,089  983  1,017
Advertising  400  310  455  339  431
Net impairment (recovery) of mortgage servicing rights  70  (3)  (3)  (8)  (10)
Amortization of mortgage servicing rights  105  128  128  115  123
Amortization of intangible assets  753  633  636  637  655
FDIC insurance  268  265  242  271  259
Due diligence and merger-related expenses  957  775  377  264  155
Professional fees  809  701  914  593  581
Pennsylvania bank shares tax  64  412  412  368  274
Other operating expenses  3,571  3,019  3,190  2,985  3,598
Non-interest expense  21,932  19,961  20,626  18,899  20,658
           
Income before income taxes  10,754  10,208  11,673  10,213  9,890
Income tax expense  3,710  3,702  4,069  3,524  3,419
Net income  $ 7,044  $ 6,506  $ 7,604  $ 6,689  $ 6,471
           
Per share data:          
Weighted average shares outstanding  13,646,098  13,600,355  13,531,170  13,485,213  13,419,269
Dilutive common shares  296,682  272,516  304,998  304,828  308,674
Adjusted weighted average dilutive shares  13,942,780  13,872,871  13,836,168  13,790,041  13,727,943
           
Basic earnings per common share $0.52 $0.48 $0.56 $0.50 $0.48
           
Diluted earnings per common share $0.51 $0.47 $0.55 $0.49 $0.47
           
Dividend declared per share $0.19 $0.19 $0.18 $0.18 $0.18
           
Effective tax rate 34.5% 36.3% 34.9% 34.5% 34.6%
           
Supplemental Non-GAAP Performance Measures* (Includes Reconciliation of Non-GAAP to GAAP Performance Measures)
Net income (a GAAP measure)  $ 7,044  $ 6,506  $ 7,604  $ 6,689  $ 6,471
add: tax-effected** due diligence and merger-related expenses  622  504  245  172  101
Net income excluding tax-effected** due diligence and merger-related expenses (a non-GAAP measure)  7,666  7,010  7,849  6,861  6,572
Basic earnings per common share excluding tax-effected** due diligence and merger-related expenses (a non-GAAP measure)  $ 0.56  $ 0.52  $ 0.58  $ 0.51  $ 0.49
Diluted earnings per common share excluding tax-effected** due diligence and merger-related expenses (a non-GAAP measure)  $ 0.55  $ 0.51  $ 0.57  $ 0.50  $ 0.48
           
*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 Twelve Months Ended December 31,
  2014 2013
     
Interest income  $ 82,906  $ 78,417
Interest expense  6,078  5,427
     
Net interest income  76,828  72,990
Provision for loan and lease losses  884  3,575
Net interest income after provision for loan and lease losses  75,944  69,415
     
Fees for wealth management services  36,774  35,184
Loan servicing and other fees  1,755  1,845
Service charges on deposits  2,578  2,445
Net gain on sale of residential mortgage loans  1,772  4,117
Net gain (loss) on sale of investment securities available for sale  471  (8)
Net gain (loss) on sale of other real estate owned  175  (300)
Bank owned life insurance income  315  358
Other operating income  4,482  4,714
Non-interest income  48,322  48,355
     
Salaries and wages  37,113  36,346
Employee benefits  7,340  8,832
Net gain on curtailment of nonqualified pension plan  --  (690)
Occupancy and bank premises  7,305  6,862
Furniture fixtures and equipment  4,508  3,977
Advertising  1,504  1,526
Net (recovery) impairment of mortgage servicing rights  56  3
Amortization of mortgage servicing rights  476  740
Amortization of intangible assets  2,659  2,633
FDIC insurance  1,046  1,063
Due diligence and merger-related expenses  2,373  1,885
Professional fees  3,017  2,456
Early extinguishment of debt - costs and premiums  --  347
Pennsylvania bank shares tax  1,256  942
Other operating expenses  12,765  13,818
Non-interest expense  81,418  80,740
     
Income before income taxes  42,848  37,030
Income tax expense  15,005  12,586
Net income  $ 27,843  $ 24,444
     
Per share data:    
Weighted average shares outstanding  13,566,239  13,311,215
Dilutive common shares  294,756  260,395
Adjusted weighted average shares  13,860,995  13,571,610
     
Basic earnings per common share $2.05 $1.84
     
Diluted earnings per common share $2.01 $1.80
     
Dividend declared per share $0.74 $0.69
     
Effective tax rate 35.0% 34.0%
     
Supplemental Non-GAAP Performance Measures* (Includes Reconciliation of Non-GAAP to GAAP Performance Measures)
Net income (a GAAP measure)  $ 27,843  $ 24,444
add: tax-effected** due diligence and merger-related expenses  1,542  1,225
Net income excluding tax-effected** due diligence and merger-related expenses (a non-GAAP measure)  29,385  25,669
Basic earnings per common share excluding tax-effected** due diligence and merger-related expenses (a non-GAAP measure)  $ 2.17  $ 1.93
Diluted earnings per common share excluding tax-effected** due diligence and merger-related expenses (a non-GAAP measure)  $ 2.12  $ 1.89
     
*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)
           
  December 31, September 30, June 30, March 31, December 31,
  2014 2014 2014 2014 2013
Assets          
           
Interest-bearing deposits with banks  $ 202,552  $ 56,253  $ 85,946  $ 59,248  $ 67,618
Investment securities - available for sale  229,577  265,939  266,402  272,599  285,808
Investment securities - trading  3,896  3,803  3,597  3,517  3,437
Loans held for sale  3,882  1,375  1,631  1,340  1,350
Portfolio loans:          
Consumer  18,480  16,810  18,907  18,104  16,926
Commercial & industrial  335,645  342,524  334,474  334,295  328,459
Commercial mortgages  689,528  683,558  666,924  640,574  625,341
Construction  66,267  59,923  55,051  44,060  46,369
Residential mortgages  313,442  314,127  310,491  301,532  300,243
Home equity lines & loans  182,082  183,314  185,593  186,277  189,571
Leases  46,813  44,982  44,102  40,988  40,276
Total portfolio loans and leases  1,652,257  1,645,238  1,615,542  1,565,830  1,547,185
           
Earning assets  2,092,164  1,972,608  1,973,118  1,902,534  1,905,398
           
Cash and due from banks  16,717  11,312  17,018  14,696  13,453
Allowance for loan and lease losses  (14,586)  (15,599)  (15,470)  (15,770)  (15,515)
Premises and equipment  33,748  32,733  32,679  32,473  31,796
Accrued interest receivable  5,560  5,661  5,526  5,687  5,728
Mortgage servicing rights  4,765  4,796  4,760  4,734  4,750
Goodwill  35,502  32,843  32,843  32,843  32,843
Other intangible assets  22,998  17,459  18,092  18,728  19,365
Bank owned life insurance  20,535  20,451  20,375  20,301  20,220
FHLB stock  11,523  12,889  12,775  11,911  11,654
Deferred income taxes  7,011  5,786  5,984  7,517  8,690
Other investments  5,226  4,592  4,507  4,392  4,437
Other assets  5,343  18,351  19,018  19,770  18,846
           
Total assets  $ 2,246,506  $ 2,123,882  $ 2,131,225  $ 2,059,816  $ 2,061,665
           
Liabilities and shareholders' equity          
           
Interest-bearing deposits:          
Interest-bearing checking  $ 277,228  $ 256,890  $ 263,247  $ 269,409  $ 266,787
Money market  566,354  550,238  559,070  556,076  544,310
Savings  138,992  142,364  145,312  141,979  135,240
Wholesale non-maturity deposits  66,693  41,290  41,840  42,704  42,937
Wholesale time deposits  73,458  60,171  50,152  34,104  34,639
Time deposits  118,400  121,158  123,572  130,983  140,794
Total interest-bearing deposits  1,241,125  1,172,111  1,183,193  1,175,255  1,164,707
           
Non-interest-bearing deposits  446,903  438,221  436,739  404,340  426,640
Total deposits  1,688,028  1,610,332  1,619,932  1,579,595  1,591,347
           
Long-term FHLB advances and other borrowings  260,146  230,574  233,132  214,640  205,644
Short-term borrowings  23,824  13,980  13,320  10,739  10,891
Other liabilities  29,034  21,387  21,470  19,365  23,885
Shareholders' equity  245,474  247,609  243,371  235,477  229,898
           
Total liabilities and shareholders' equity  $ 2,246,506  $ 2,123,882  $ 2,131,225  $ 2,059,816  $ 2,061,665
           
           
           
Bryn Mawr Bank Corporation
Consolidated Quarterly Average Balance Sheets - (unaudited)
(dollars in thousands)
  For The Three Months Ended
  December 31, September 30, June 30, March 31, December 31,
  2014 2014 2014 2014 2013
Assets          
           
Interest-bearing deposits with banks  $ 115,276  $ 78,324  $ 70,775  $ 67,809  $ 56,569
Investment securities - available for sale  252,422  265,491  271,830  281,572  310,183
Investment securities - trading  3,804  3,599  3,518  3,438  2,368
Loans held for sale  982  1,116  1,280  504  1,197
Portfolio loans and leases  1,654,239  1,629,102  1,599,104  1,549,161  1,522,408
Earning assets  2,026,723  1,977,632  1,946,507  1,902,484  1,892,725
           
Cash and due from banks  13,795  12,739  12,067  12,302  13,132
Allowance for loan and lease losses  (15,837)  (15,672)  (16,073)  (15,761)  (15,226)
Premises and equipment  33,290  32,763  32,829  32,358  31,770
Goodwill  35,539  32,843  32,843  32,843  32,843
Other intangible assets  23,392  17,821  18,459  19,095  19,741
Bank owned life insurance  20,478  20,402  20,327  20,252  20,163
FHLB stock  11,419  12,864  12,663  11,915  12,242
Deferred income taxes  2,941  5,926  7,119  7,908  11,733
Other assets  31,102  30,491  29,750  29,940  22,288
           
Total assets  $ 2,182,842  $ 2,127,809  $ 2,096,491  $ 2,053,336  $ 2,041,411
           
Liabilities and shareholders' equity          
           
Interest-bearing deposits:          
Interest-bearing checking  $ 259,408  $ 255,601  $ 264,087  $ 263,612  $ 248,722
Money market  553,708  565,803  556,241  545,108  548,351
Savings  143,650  143,877  143,418  137,812  137,327
Wholesale non-maturity deposits  60,197  43,256  42,970  41,828  48,465
Wholesale time deposits  68,525  54,976  48,791  35,133  22,735
Time deposits  120,855  121,986  127,167  134,574  142,258
Total interest-bearing deposits  1,206,343  1,185,499  1,182,674  1,158,067  1,147,858
           
Non-interest bearing deposits  446,252  426,883  416,104  415,514  420,072
Total deposits  1,652,595  1,612,382  1,598,778  1,573,581  1,567,930
           
Long-term FHLB advances and other borrowings  237,835  235,091  222,851  212,405  204,780
Short-term borrowings  19,407  14,074  17,220  13,090  25,364
Other liabilities  24,070  22,298  19,368  22,546  23,401
Shareholders' equity  248,935  243,964  238,274  231,714  219,936
           
Total liabilities and shareholders' equity  $ 2,182,842  $ 2,127,809  $ 2,096,491  $ 2,053,336  $ 2,041,411
           
           
Bryn Mawr Bank Corporation
Consolidated Year-to-Date Average Balance Sheets - (unaudited)
(dollars in thousands)
     
  For The Twelve Months Ended December 31,
  2014 2013
Assets    
     
Interest bearing deposits with banks  $ 83,163  $ 67,124
Investment securities - available for sale  267,743  320,868
Investment securities - trading  3,591  2,106
Loans held for sale  972  1,729
Portfolio loans and leases  1,608,248  1,453,555
Earning assets  1,963,717  1,845,382
     
Cash and due from banks  12,730  12,946
Allowance for loan and lease losses  (15,836)  (14,800)
Premises and equipment  32,812  31,414
Goodwill  33,522  32,869
Intangible assets  19,699  20,724
Bank owned life insurance  20,365  20,041
FHLB stock  12,144  11,881
Deferred income taxes  5,960  11,714
Other assets  30,369  22,329
     
Total assets  $ 2,115,482  $ 1,994,500
     
Liabilities and shareholders' equity    
     
Interest-bearing deposits:    
Interest-bearing checking  $ 260,652  $ 257,292
Money market  555,267  563,914
Savings  142,210  134,771
Wholesale non-maturity deposits  47,103  41,564
Wholesale time deposits  51,956  14,210
Time deposits  126,097  162,397
Total interest-bearing deposits  1,183,285  1,174,148
     
Non-interest-bearing deposits  426,274  400,254
Total deposits  1,609,559  1,574,402
     
Long-term FHLB advances and other borrowings  227,137  167,089
Short-term borrowings  15,960  16,457
Other liabilities  22,048  24,502
Shareholders' equity  240,778  212,050
     
Total liabilities and shareholders' equity  $ 2,115,482  $ 1,994,500
     
     
Bryn Mawr Bank Corporation
Quarterly Average Balances and Tax-Equivalent Interest Income and Expense and Tax-Equivalent Yields - (unaudited)
                               
   
  For The Three Months Ended
  December 31, 2014 September 30, 2014 June 30, 2014 March 31, 2014 December 31, 2013
           
(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  $ 115,276  $ 65 0.22%  $ 78,324  $ 46 0.23%  $ 70,775  $ 44 0.25%  $ 67,809  $ 37 0.22%  $ 56,569  $ 27 0.19%
Investment securities - available for sale:                              
Taxable 221,190 973 1.75% 230,457 884 1.52% 235,853 903 1.54% 245,006 972 1.61% 271,152 1,127 1.65%
Tax-exempt 31,232 142 1.80% 35,034 149 1.69% 35,977 151 1.68% 36,566 153 1.70% 39,031 159 1.62%
Total investment securities - available for sale 252,422 1,115 1.75% 265,491 1,033 1.54% 271,830 1,054 1.56% 281,572 1,125 1.62% 310,183 1,286 1.64%
                               
Investment securities - trading 3,804 9 0.94% 3,599 9 0.99% 3,518 17 1.94% 3,438 7 0.83% 2,368 51 8.54%
                               
Loans and leases * 1,655,221 19,972 4.79% 1,630,218 19,767 4.81% 1,600,384 19,936 5.00% 1,549,665 19,107 5.00% 1,523,605 19,277 5.02%
                               
Total interest-earning assets 2,026,723 21,161 4.14% 1,977,632 20,855 4.18% 1,946,507 21,051 4.34% 1,902,484 20,276 4.32% 1,892,725 20,641 4.33%
                               
Cash and due from banks 13,795     12,739     12,067     12,302     13,132    
Less allowance for loan and lease losses (15,837)     (15,672)     (16,073)     (15,761)     (15,226)    
Other assets 158,161     153,110     153,990     154,311     150,780    
                               
Total assets  $ 2,182,842      $ 2,127,809      $ 2,096,491      $ 2,053,336      $ 2,041,411    
                               
Liabilities:                              
                               
Interest-bearing deposits:                              
Savings, NOW and market rate deposits  $ 956,766  $ 422 0.17%  $ 965,281  $ 430 0.18%  $ 963,746  $ 420 0.17%  $ 946,532  $ 405 0.17%  $ 934,400  $ 414 0.18%
Wholesale deposits 128,722 190 0.59% 98,232 175 0.71% 91,761 147 0.64% 76,961 114 0.60% 71,200 85 0.47%
Time deposits 120,855 143 0.47% 121,986 137 0.45% 127,167 146 0.46% 134,574 170 0.51% 142,258 151 0.42%
Total interest-bearing deposits 1,206,343 755 0.25% 1,185,499 742 0.25% 1,182,674 713 0.24% 1,158,067 689 0.24% 1,147,858 650 0.22%
                               
Borrowings:                              
Short-term borrowings 19,407 4 0.08% 14,074 3 0.08% 17,220 5 0.12% 13,090 3 0.09% 25,364 12 0.19%
Long-term FHLB advances and other borrowings 237,835 809 1.35% 235,091 828 1.40% 222,851 781 1.41% 212,405 746 1.42% 204,780 738 1.43%
Total borrowings 257,242 813 1.25% 249,165 831 1.32% 240,071 786 1.31% 225,495 749 1.35% 230,144 750 1.29%
                               
Total interest-bearing liabilities 1,463,585 1,568 0.43% 1,434,664 1,573 0.43% 1,422,745 1,499 0.42% 1,383,562 1,438 0.42% 1,378,002 1,400 0.40%
                               
Noninterest-bearing deposits 446,252     426,883     416,104     415,514     420,072    
Other liabilities 24,070     22,298     19,368     22,546     23,401    
Total noninterest-bearing liabilities 470,322     449,181     435,472     438,060     443,473    
                               
Total liabilities 1,933,907     1,883,845     1,858,217     1,821,622     1,821,475    
                               
Shareholders' equity 248,935     243,964     238,274     231,714     219,936    
                               
Total liabilities and shareholders' equity  $ 2,182,842      $ 2,127,809      $ 2,096,491      $ 2,053,336      $ 2,041,411    
                               
Interest income to earning assets     4.14%     4.18%     4.34%     4.32%     4.33%
                               
Net interest spread     3.71%     3.75%     3.92%     3.90%     3.93%
Effect of noninterest-bearing sources     0.13%     0.12%     0.11%     0.12%     0.10%
                               
Tax-equivalent net interest income/ margin on earning assets    $ 19,593 3.84%    $ 19,282 3.87%    $ 19,552 4.03%    $ 18,838 4.02%    $ 19,241 4.03%
                               
Tax-equivalent adjustment    $ 106 0.02%    $ 106 0.02%    $ 110 0.02%    $ 115 0.02%    $ 116 0.02%
                               
Supplemental Information Regarding Accretion of Fair Value Marks
Accretion of fair value marks on loans    $ 513      $ 516      $ 941      $ 761      $ 879  
Accretion of fair value marks on time deposits    4      6      6      7      49  
Accretion of fair value marks on borrowings    30      30      30      30      30  
Net interest income from fair value marks    $ 547      $ 552      $ 977      $ 798      $ 958  
Effect of fair value mark accretion on tax-equivalent net interest margin   0.11%     0.11%     0.20%     0.17%     0.20%  
* 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
Average Balances and Tax-Equivalent Interest Income and Expense and Tax-Equivalent Yields
   
  For The Twelve Months Ended December 31,
  2014 2013
             
    Interest Average   Interest Average
  Average Income/ Rates Average  Income/  Rates
(dollars in thousands) Balance Expense Earned/ Paid Balance Expense Earned/ Paid
             
Assets:            
Interest-bearing deposits with other banks  $ 83,163  193 0.23%  $ 67,124  158 0.24%
Investment securities available for sale:            
Taxable  233,054  3,740 1.60%  282,978  3,849 1.36%
Tax-exempt  34,689  594 1.71%  37,890  588 1.55%
             
Investment securities - available for sale  267,743  4,334 1.62%  320,868  4,437 1.38%
             
Investment securities - trading  3,591  33 0.92%  2,106  73 3.47%
             
Loans and leases *  1,609,220  78,781 4.90%  1,455,284  74,180 5.10%
             
Total interest earning assets  1,963,717  83,341 4.24%  1,845,382  78,848 4.27%
             
Cash and due from banks  12,730      12,946    
Less allowance for loan and lease losses  (15,836)      (14,800)    
Other assets  154,871      150,972    
             
Total assets $2,115,482     $1,994,500    
             
Liabilities:            
             
Savings,NOW and market rate deposits $958,129  $ 1,675 0.17% $955,977  $ 1,757 0.18%
Wholesale deposits  99,059  627 0.63%  55,774  238 0.43%
Time deposits  126,097  596 0.47%  162,397  763 0.47%
Total interest-bearing deposits $1,183,285  2,898 0.24% $1,174,148  2,758 0.23%
             
Short-term borrowings  15,960  17 0.11%  167,089  2,644 1.58%
Long-term FHLB advances and other borrowings  227,137  3,163 1.39%  16,457  25 0.15%
Total Borrowings  243,097  3,180 1.31%  183,546  2,669 1.45%
             
Total interest-bearing liabilities  1,426,382  6,078 0.43%  1,357,694  5,427 0.40%
             
             
Noninterest-bearing deposits  426,274      400,254    
Other liabilities  22,048      24,502    
Total noninterest-bearing liabilities  448,322      424,756    
             
Total liabilities  1,874,704      1,782,450    
             
Shareholders' equity  240,778      212,050    
             
Total liabilities and shareholders' equity  $ 2,115,482      $ 1,994,500    
             
Interest income to earning assets     4.24%     4.27%
             
Net interest spread     3.81%     3.87%
Effect of noninterest-bearing sources     0.12%     0.11%
             
Tax-equivalent net interest income/ margin on earning assets    $ 77,263 3.93%    $ 73,421 3.98%
             
Tax-equivalent adjustment    $ 435 0.02%    $ 431 0.02%
             
Supplemental Information Regarding Accretion of Fair Value Marks
Accretion of fair value marks on loans    $ 2,730      $ 3,064  
Accretion of fair value marks on time deposits    23      349  
Accretion of fair value marks on borrowings    121      150  
Net interest income from fair value marks    $ 2,874      $ 3,563  
Effect of fair value mark accretion on tax-equivalent net interest margin   0.15%     0.19%  
* 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
  December 31, September 30, June 30, March 31, December 31,
  2014 2014 2014 2014 2013
Asset Quality Data          
           
Nonaccrual loans and leases  $ 10,096  $ 8,336  $ 8,388  $ 10,236  $ 10,530
90 days or more past due loans, still accruing  --  --  --  --  --
Nonperforming loans and leases  10,096  8,336  8,388  10,236  10,530
Other real estate owned  1,147  894  853  1,040  855
Total nonperforming assets  $ 11,243  $ 9,230  $ 9,241  $ 11,276  $ 11,385
           
Troubled debt restructurings included in nonperforming assets  $ 4,315  $ 1,725  $ 1,597  $ 2,698  $ 1,699
Troubled debt restructurings in compliance with modified terms  4,157  6,913  7,487  6,667  7,277
Total troubled debt restructurings  $ 8,472  $ 8,638  $ 9,084  $ 9,365  $ 8,976
           
           
Nonperforming loans and leases / portfolio loans & leases 0.61% 0.51% 0.52% 0.65% 0.68%
           
Nonperforming assets / total assets 0.50% 0.43% 0.43% 0.55% 0.55%
           
Net loan and lease charge-offs / average loans and leases (annualized) 0.17% 0.10% 0.05% 0.13% 0.09%
           
Delinquency rate* - Performing and nonperforming loans and leases 30 days or more past due 0.50% 0.48% 0.64% 0.59% 0.65%
           
Performing loans and leases - 30-89 days past due  $ 2,232  $ 1,739  $ 3,743  $ 1,815  $ 1,718
           
Delinquency rate* - Performing loans and leases - 30-89 days past due 0.13% 0.11% 0.23% 0.12% 0.11%
           
* as a percentage of total loans and leases
           
           
Changes in the allowance for loan and lease losses:
           
Balance, beginning of period  $ 15,599  $ 15,470  $ 15,770  $ 15,515  $ 15,027
Charge-offs  (864)  (493)  (304)  (538)  (484)
Recoveries  167  72  104  43  160
Net charge-offs  (697)  (421)  (200)  (495)  (324)
Provision for loan and lease losses  (316)  550  (100)  750  812
Balance, end of period  $ 14,586  $ 15,599  $ 15,470  $ 15,770  $ 15,515
           
Allowance for loan and lease losses / loans and leases 0.88% 0.95% 0.96% 1.01% 1.00%
Allowance for loan and lease losses / nonperforming loans and leases 144.5% 187.1% 184.4% 154.1% 147.3%
 
 
Bryn Mawr Bank Corporation
Consolidated Selected Financial Data - (unaudited)
 (dollars in thousands, except per share data)
  For The Three Months Ended or As Of
  December 31, September 30, June 30, March 31, December 31,
  2014 2014 2014 2014 2013
Selected ratios (annualized):          
           
Return on average assets 1.28% 1.21% 1.45% 1.32% 1.26%
Return on average shareholders' equity 11.23% 10.58% 12.80% 11.71% 11.67%
Return on average tangible equity (2) 14.71% 13.35% 16.31% 15.10% 15.35%
Tax-equivalent yield on loans and leases 4.79% 4.81% 5.00% 5.00% 5.02%
Tax-equivalent yield on interest-earning assets 4.14% 4.18% 4.34% 4.32% 4.33%
Cost of interest-bearing funds 0.43% 0.43% 0.42% 0.42% 0.40%
Tax-equivalent net interest margin 3.84% 3.87% 4.03% 4.02% 4.03%
Book value per share  $ 17.83  $ 18.03  $ 17.74  $ 17.24  $ 16.84
Tangible book value per share  $ 13.58  $ 14.37  $ 14.03  $ 13.47  $ 13.02
Shares outstanding at end of period  13,769,336  13,730,581  13,719,337  13,656,979  13,650,354
           
Selected data:          
           
Mortgage loans originated  $ 29,929  $ 29,861  $ 39,575  $ 17,892  $ 37,190
           
Residential mortgage loans sold - servicing retained  $ 14,382  $ 16,237  $ 15,154  $ 9,086  $ 12,523
Residential mortgage loans sold - servicing released  92  539  --  152  531
Total residential mortgage loans sold  $ 14,474  $ 16,776  $ 15,154  $ 9,238  $ 13,054
           
Yield on residential mortgage loans sold 3.25% 2.62% 3.54% 3.51% 4.05%
           
Loans serviced for others (includes residential mortgage, commercial mortgage and commercial & industrial)  $ 618,001  $ 624,598  $ 622,808  $ 618,348  $ 628,879
           
           
Total wealth assets under management, administration, supervision and brokerage (1)  $ 7,699,908  $ 7,580,779  $ 7,569,842  $ 7,361,977  $ 7,268,273
           
(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 Twelve Months Ended December 31,
  2014 2013
Selected ratios (annualized):    
     
Return on average assets 1.32% 1.23%
Return on average shareholders' equity 11.56% 11.53%
Return on average tangible equity (1) 14.85% 15.43%
Tax-equivalent yield on loans and leases 4.90% 5.10%
Tax-equivalent yield on interest-earning assets 4.24% 4.27%
Cost of interest-bearing liabilities 0.43% 0.40%
Tax-equivalent net interest margin 3.93% 3.98%
     
Selected data:    
     
Residential mortgage loans originated  $ 117,257  $ 197,787
     
Residential mortgage loans sold - servicing retained  $ 54,859  $ 127,914
Residential mortgage loans sold - servicing released  783  1,067
Total residential mortgage loans sold  $ 55,642  $ 128,981
     
(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 December 31, 2014 As of December 31, 2013
             
      Net     Net
  Amortized Fair Unrealized Amortized Fair Unrealized
SECURITY DESCRIPTION Cost Value Gain / (Loss) Cost Value Gain / (Loss)
             
U.S. Treasury securities  $ 102  $ 100  $ (2)  $ 102  $ 99  $ (3)
Obligations of the U.S. Government and agencies  66,881  66,762  (119)  71,097  69,568  (1,529)
State & political subdivisions  28,955  29,045  90  37,140  36,977  (163)
Mortgage-backed securities  79,498  81,382  1,884  119,044  119,363  319
Collateralized mortgage obligations  34,618  34,797  179  44,463  44,243  (220)
Other debt securities  1,900  1,900  --  1,900  1,887  (13)
Bond mutual funds  11,956  11,835  (121)  11,456  11,457  1
Other investments  3,643  3,756  113  1,925  2,214  289
Total investment portfolio available for sale  $ 227,553  $ 229,577  $ 2,024  $ 287,127  $ 285,808  $ (1,319)
             
Capital Ratios            
  Regulatory Minimum          
  To Be December 31, September 30, June 30, March 31, December 31,
Bryn Mawr Trust Company Well Capitalized 2014 2014 2014 2014 2013
             
Tier I capital to risk weighted assets ("RWA") 6.00% 11.32% 11.60% 11.68% 11.65% 11.40%
Total (Tier II) capital to RWA 10.00% 12.19% 12.54% 12.62% 12.63% 12.38%
Tier I leverage ratio 5.00% 8.98% 9.39% 9.51% 9.43% 9.14%
Tangible equity ratio N/A 8.19% 9.21% 9.18% 9.18% 8.78%
             
Bryn Mawr Bank Corporation            
             
Tier I capital to RWA 6.00% 12.00% 12.05% 11.85% 11.71% 11.57%
Total (Tier II) capital to RWA 10.00% 12.87% 12.99% 12.79% 12.69% 12.55%
Tier I leverage ratio 5.00% 9.43% 9.77% 9.67% 9.50% 9.29%
Tangible equity ratio N/A 8.61% 9.58% 9.32% 9.23% 8.92%
             
CONTACT: Frank Leto, President, CEO 610-581-4800 J. Duncan Smith, CFO 610-526-2466
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