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Bryn Mawr Bank Corporation Reports Strong Third Quarter 2012 Earnings, Led by Robust Wealth Management Revenues and Residential Mortgage Gains

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BRYN MAWR, Pa., Oct. 25, 2012 (GLOBE NEWSWIRE) -- Bryn Mawr Bank Corporation (Nasdaq: BMTC), (the "Corporation"), parent of The Bryn Mawr Trust Company (the "Bank"), today announced net income for the three months ended September 30, 2012 of $5.4 million, an increase of $195 thousand, or 3.7%, as compared to net income of $5.2 million for the same period in 2011. Diluted earnings per share of $0.41 for the three months ended September 30, 2012 remained unchanged from the same period in 2011. Included in the net income for the quarter were due diligence and merger-related expenses of $316 thousand and $188 thousand in prepayment penalties related to the early extinguishment of $9.4 million of debt. Contributing significantly to the Corporation's solid performance for the quarter was a $1.9 million increase in revenue for Wealth Management services along with a $1.1 million increase in gain on sale of mortgage loans for the three months ended September 30, 2012, as compared to the same period in 2011.

On October 25, 2012, the Board of Directors of the Corporation declared a quarterly dividend of $0.16 per share. The dividend is payable December 1, 2012, to shareholders of record as of November 6, 2012.

Ted Peters, Chairman and Chief Executive Officer commented, "The Corporation has posted yet another excellent quarter driven by strong non-interest revenue, which was able to offset increases in non-interest expense during the quarter. The revenue from Wealth Management services reported during the quarter demonstrated the impact of the May 15, 2012 acquisition of the Davidson Trust Company." Mr. Peters added, "The continuing low-interest- rate environment has helped sustain the residential mortgage refinancing trend, allowing the Corporation to record its third consecutive quarterly increase in gain on sale of residential mortgage loans. We are pleased that these sources of non-interest income have more than compensated for the continuing pressure on our net interest margin."

The previously announced acquisition of consumer and business deposit and loan accounts, as well as a branch location in Wilmington, Delaware, from the First Bank of Delaware, which is anticipated to increase loans by approximately $90 million and deposits by approximately $60 million, is expected to close during the fourth quarter of 2012. An amendment to the original purchase agreement between the Corporation and the First Bank of Delaware was filed on Form 8-K on October 18, 2012 with the Securities and Exchange Commission.

Mr. Peters continued, "We are looking forward to completing the First Bank of Delaware transaction. The acquisition will expand our footprint in Delaware, complementing Lau Associates and the Bryn Mawr Trust Company of Delaware, and enable us to establish a commercial banking foothold in the attractive Delaware market."

SIGNIFICANT ITEMS OF NOTE

  • Net income for the three months ended September 30, 2012 increased $195 thousand, or 3.7%, as compared to 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 the provision for loan and lease losses for the three months ended September 30, 2012, as compared to the same period in 2011. These improvements were partially offset by increases in salaries and employee benefits, occupancy, intangible asset amortization, due diligence and merger-related expense and other operating expenses.
  • Non-interest income of $12.2 million for the three months ended September 30, 2012, represented 43.4% of total revenue (net interest income plus non-interest income) and was a $3.0 million, or 32.2%, increase from the same period in 2011. Non-interest income represented 37.1% of total revenue for the three months ended September 30, 2011.
  • Comprising a significant portion of non-interest income, revenue from Wealth Management services for the three months ended September 30, 2012 was $8.0 million, an increase of 31.1% from the $6.1 million generated during the same period in 2011, reflecting the effects of the May 15, 2012 acquisition of the Davidson Trust Company ("DTC"). Wealth Management Division assets under management, administration, supervision and brokerage as of September 30, 2012 were $6.5 billion, an increase of $1.7 billion, or 34.2 %, from December 31, 2011, and a $2.0 billion, or 44.0% increase, from September 30, 2011. A significant portion of this increase was the result of the DTC acquisition, along with additional organic growth from within the Wealth Management division.
  • Non-interest expense for the three months ended September 30, 2012 totaled $18.9 million, an increase of $3.2 million from the same period in 2011. Factors contributing to this increase included a $1.3 million increase in salaries and employee benefits and a $333 thousand increase in occupancy-related costs, largely related to the acquisition of DTC. In addition, due diligence and merger-related expenses increased by $180 thousand related to the pending First Bank of Delaware transaction. Other increases in non-interest expense between the periods included a $433 thousand increase in deferred compensation expense which totaled $120 thousand for the three months ended September 30, 2012 as compared to a credit of $313 thousand for the same period in 2011.  This deferred compensation expense is discussed below under the heading, "Correction of an Immaterial Accounting Error." In addition, the Corporation incurred a $188 thousand prepayment penalty resulting from the early extinguishment of $9.4 million of debt.
  • Tax-equivalent net interest income of $16.0 million for the three months ended September 30, 2012 increased $278 thousand, or 1.8%, from the $15.7 million of tax-equivalent net interest income for the same period in 2011.
  • The tax-equivalent net interest margin of 3.78% for the three months ended September 30, 2012 declined 12 basis points from 3.90% for the same period in 2011. The effect of this decline in tax-equivalent net interest margin was more than offset by an $84.5 million increase in average interest-earning assets, relative to a $32.4 million increase in average interest-bearing liabilities, between the two periods. In addition, the average balance of non-interest-bearing deposits increased by $39.7 million between the two periods.
  • The Corporation took strategic steps during the quarter to reduce certain of its higher rate interest-bearing liabilities. In particular, at the end of the third quarter, the Corporation prepaid $7.5 million of subordinated debt in addition to a $1.9 million commercial mortgage. These early extinguishments of debt generated a prepayment penalty of $188 thousand.
  • Net gain on sale of residential mortgage loans for the three months ended September 30, 2012 was $1.8 million as compared to $764 thousand for the same period in 2011. The 140.4% increase was attributable to a significant increase in residential mortgage loan originations between the periods as the low-rate environment continued to spur refinancing activity.
  • Deposits of $1.40 billion as of September 30, 2012 increased $16.2 million, or 1.2%, from $1.38 billion as of December 31, 2011. Primarily contributing to this slight increase was a $100.1 million increase in money market accounts, offset by decreases of $27.7 million in wholesale non-maturity deposits, $13.6 million in wholesale time deposits and $37.8 million in time deposits. Non-interest-bearing deposits continue to be strong, representing 23.4% of total deposits as of September 30, 2012.
  • Total portfolio loans and leases of $1.31 billion as of September 30, 2012 increased by $18.3 million from December 31, 2011. Loan growth was primarily concentrated in the commercial mortgage segment of the portfolio, partially offset by decreases in the construction and home equity segments of the portfolio.
  • Nonperforming loans and leases as of September 30, 2012 totaled $13.8 million, or 1.05% of portfolio loans and leases, as compared to $14.3 million, or 1.11% of portfolio loans and leases as of December 31, 2011. More recently, however, nonperforming loans and leases have declined significantly from $22.6 million at March 31, 2012 and $18.3 million at June 30, 2012.
  • The provision for loan and lease losses (the "Provision") for the three months ended September 30, 2012 was $1.0 million, a decrease of $828 thousand as compared to the same period in 2011. The decrease in the Provision between periods was primarily due to a $1.0 million reduction in net charge-offs for the three months ended September 30, 2012, as compared to the same period in 2011.
  • The allowance for loan and lease losses, as of September 30, 2012, of $13.6 million, was 1.04% of portfolio loans and leases, as compared to $12.8 million, or 0.98% of portfolio loans and leases as of December 31, 2011.  
  • Available for sale investment securities as of September 30, 2012 totaled $316.6 million, as compared to $273.8 million as of December 31, 2011. The net gain on sale of available for sale investment securities for the three months ended September 30, 2012 was $416 thousand, as compared to a gain of $343 thousand for the same period in 2011. 
  • The capital ratios for the Bank and the Corporation, as shown in the table below, indicate levels well above the regulatory minimum to be considered "well capitalized".
  • Construction is well underway on our full-service branch in Bala Cynwyd, Pennsylvania, just outside Philadelphia. The branch is projected to be completed and open for business before the end of the year. The Corporation is continuing to look for additional opportunities to expand in the state of Delaware in order to complement the Lau Associates and Bryn Mawr Trust of Delaware offices and the soon-to-be-acquired First Bank of Delaware branch location.

OTHER INFORMATION

Correction of an Immaterial Accounting Error

In September 2012, the Corporation identified an immaterial accounting error related to two of its deferred compensation plans. The provisions of the deferred compensation plans enabled certain executives and directors to have bonus payments and director fees deferred, and allowed the participants to direct the investment of these deferred amounts. Because one of the investment choices offered to the participants was the Corporation's common stock, this stock was placed in a trust owned by the Corporation whose fair market value was periodically adjusted to reflect changes in the stock's price. The portion of this trust that contained the Corporation's common stock was incorrectly reported as an asset on the Corporation's balance sheet. Changes in the fair market value of the asset were reflected as increases or decreases in the value of the asset, as well as increases or decreases in the value of the liability to the participants. The stock held in the trust should have been classified as treasury stock and should have been reported in the stockholders' equity section of the Corporation's balance sheet, at cost. The resulting corrections involved adjustments to assets and stockholders' equity, as well as adjustments to other operating expense, as changes in the fair market value of the Corporation's common stock held in the trust are charged to deferred compensation expense, a component of other operating expense. All periods presented in the tables accompanying this earnings release have been revised to reflect this correction. In addition, a reconciliation of net income, basic and diluted earnings per common share, total assets, retained earnings, and number of shares and cost of treasury stock, indicating their originally reported amounts and their corrected amounts, is included in the table below.

EARNINGS CONFERENCE CALL

The Corporation will hold an earnings conference call at 8:30 a.m. EDT on Friday, October 26, 2012. Interested parties may participate by calling 1-877-317-6789, conference number 10018204. A taped replay of the conference call will be available within one hour after the conclusion of the call and will remain available through November 12, 2012. The number to call for the taped replay is 1-877-344-7529 and the Replay Passcode is 10018204. 

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 or by calling Aaron Strenkoski, Vice President – Finance/Investor Relations at 610-581-4822. 

FORWARD LOOKING STATEMENTS AND SAFE HARBOR

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

Such forward-looking statements involve known and unknown risks and uncertainties.   A number of factors, many of which are beyond the Corporation's control, could cause our actual results, events or developments, or industry results, to be materially different from any future results, events or developments expressed, implied or anticipated by such forward-looking statements, and so our business and financial condition and results of operations could be materially and adversely affected. Such factors include, among others, our need for capital, our ability to control operating costs and expenses, and to manage loan and lease delinquency rates; the credit risks of lending activities and overall quality of the composition of our loan, lease and securities portfolio; the impact of economic conditions, consumer and business spending habits, and real estate market conditions on our business and in our market area; changes in the levels of general interest rates, deposit interest rates, or net interest margin and funding sources; changes in banking regulations and policies and the possibility that any banking agency approvals we might require for certain activities will not be obtained in a timely manner or at all or will be conditioned in a manner that would impair our ability to implement our business plans; changes in accounting policies and practices; the inability of key third-party providers to perform their obligations to us; our ability to attract and retain key personnel; competition in our marketplace; war or terrorist activities; material differences in the actual financial results, cost savings and revenue enhancements associated with our acquisitions including our acquisition of Davidson Trust Company and the anticipated acquisition of First Bank of Delaware; and other factors as described in our securities filings. All forward-looking statements and information set forth herein are based on management's current beliefs and assumptions as of the date hereof and speak only as of the date they are made. The Corporation does not undertake to update forward-looking statements.

For a more complete discussion of the assumptions, risks and uncertainties related to our business, you are encouraged to review our filings with the Securities and Exchange Commission, including our most recent annual report on Form 10-K, as well as any changes in risk factors that we may identify in our quarterly or other reports filed with the SEC.

 
Bryn Mawr Bank Corporation
Consolidated Statements of Income - (unaudited) 
(Dollars in thousands, except per share data)
           
           
  For The Three Months Ended
           
  Sep 30, Jun 30, Mar 31, Dec 31, Sept 30,
  2012 2012 2012 2011 2011
           
Interest income  $ 18,081  $ 18,188  $ 18,372  $ 18,727  $ 18,691
Interest expense  2,130  2,285  2,387  2,772  3,018
           
           
Net interest income  15,951  15,903  15,985  15,955  15,673
Provision for loan and lease losses  1,000  1,003  1,000  1,056  1,828
Net interest income after provision for loan and lease losses  14,951  14,900  14,985  14,899  13,845
           
Fees for wealth management services   7,993  7,211  6,229  6,306  6,098
Loan servicing and other fees  432  436  435  454  449
Service charges on deposits  634  609  580  654  646
Net gain on sale of residential mortgage loans  1,837  1,304  1,170  699  764
Net gain on sale of available for sale investments  416  716  --  373  343
Net (loss) gain on sale of other real estate owned ("OREO")  (45)  --  (41)  (38)  70
BOLI income  107  105  118  114  115
Other operating income  874  1,000  1,096  909  779
 Non-interest income  12,248  11,381  9,587  9,471  9,264
           
Salaries and wages   8,703  8,075  7,505  7,404  7,639
Employee benefits   1,903  2,023  2,160  1,889  1,674
Occupancy and bank premises  1,488  1,395  1,375  1,424  1,225
Furniture fixtures and equipment  935  940  891  938  865
Advertising  267  359  320  257  204
Net impairment (recovery) of mortgage servicing rights  105  87  (110)  114  468
Amortization of mortgage servicing rights  243  256  219  225  197
Intangible asset amortization  669  560  509  522  541
FDIC insurance  262  234  219  218  238
Merger related / due diligence expense  316  914  209  (79)  135
Professional fees  609  571  657  647  516
Other operating expenses   3,389  2,714  2,841  3,180  1,970
 Non-interest expense  18,889  18,128  16,795  16,739  15,672
           
Income before income taxes  8,310  8,153  7,777  7,631  7,437
Income tax expense   2,885  2,808  2,704  2,627  2,207
 Net income   $ 5,425  $ 5,345  $ 5,073  $ 5,004  $ 5,230
           
Per share data:          
Weighted average shares outstanding  13,149,050  13,072,963  12,979,746  12,901,266  12,861,926
Dilutive common shares  146,377  158,570  147,502  99,964  36,306
Adjusted weighted average dilutive shares   13,295,427  13,231,533  13,127,248  13,001,230  12,898,232
           
Basic earnings per common share $0.41 $0.41 $0.39 $0.39 $0.41
           
Diluted earnings per common share $0.41 $0.40 $0.39 $0.38 $0.41
           
Dividend declared per share $0.16 $0.16 $0.16 $0.15 $0.15
           
Effective tax rate 34.7% 34.4% 34.8% 34.4% 29.7%
 
 
Bryn Mawr Bank Corporation
Consolidated Statements of Income - (unaudited) 
(Dollars in thousands, except per share data)
     
     
  For The Nine Months Ended
     
  Sep 30, Sep 30,
  2012 2011
     
Interest income  $ 54,641  $ 55,836
Interest expense  6,802  8,889
     
Net interest income  47,839  46,947
Provision for loan and lease losses  3,003  5,032
Net interest income after provision for loan and lease losses  44,836  41,915
     
Fees for wealth management services   21,433  15,363
Loan servicing and other fees  1,303  1,370
Service charges on deposits  1,823  1,841
Net gain on sale of residential mortgage loans  4,311  1,818
Net gain on sale of available for sale investments  1,132  1,410
BOLI income  330  348
Net loss on sale of other real estate owned ("OREO")  (86)  (59)
Other operating income  2,970  2,497
 Non-interest income  33,216  24,588
     
Salaries and wages   24,283  20,680
Employee benefits   6,086  5,000
Occupancy and bank premises  4,258  3,752
Furniture fixtures and equipment  2,766  2,571
Advertising  946  909
Net impairment of mortgage servicing rights  82  672
Amortization of mortgage servicing rights  718  524
Intangible asset amortization   1,738  968
FDIC insurance  715  968
Merger expense  1,410  457
Due diligence  29  159
Merger related / due diligence expense  1,439  616
Professional fees  1,837  1,664
Other operating expenses  8,944  6,666
 Non-interest expense  53,812  44,990
     
Income before income taxes  24,240  21,513
Income tax expense  8,397  6,915
 Net income  $ 15,843  $ 14,598
     
Per share data:    
Weighted average shares outstanding  13,067,551  12,578,460
Dilutive common shares  133,799  22,512
Adjusted weighted average shares   13,201,350  12,600,972
     
Basic earnings per common share $1.21 $1.16
     
Diluted earnings per common share $1.20 $1.16
     
Dividend declared per share $0.48 $0.45
     
Effective tax rate 34.6% 32.1%
 
Bryn Mawr Bank Corporation
Consolidated Balance Sheets - (unaudited) 
(Dollars in thousands)
           
           
  Sep 30, June 30, Mar 31, Dec 31, Sept 30,
  2012 2012 2012 2011 2011
Assets          
           
 Interest bearing deposits with banks  $ 23,455  $ 68,133  $ 55,548  $ 57,265  $ 52,205
 Money market funds  104  191  211  104  106
 Investment securities - available for sale  316,644  331,407  328,215  273,822  277,187
 Investment securities - trading  1,399  1,342  1,556  1,436  1,318
           
 Loans held for sale  3,420  1,668  5,784  1,588  4,857
           
 Portfolio loans:          
 Consumer  17,342  15,920  13,644  11,429  12,235
 Commercial & industrial  274,351  264,116  270,766  267,204  271,228
 Commercial mortgages  472,354  445,254  430,896  419,130  414,656
 Construction   22,161  33,815  51,274  52,844  59,303
 Residential mortgages  301,054  304,249  306,911  306,478  279,696
 Home equity lines & loans  195,315  202,676  202,015  207,917  209,687
 Leases  31,136  30,549  28,974  30,390  31,552
Total portfolio loans and leases  1,313,713  1,296,579  1,304,480  1,295,392  1,278,357
           
Earning assets  1,658,735  1,699,320  1,695,794  1,629,607  1,614,030
           
 Cash and due from banks  13,526  13,147  11,939  11,771  10,801
 Allowance for loan and lease losses  (13,638)  (13,140)  (13,040)  (12,753)  (11,654)
 Premises and equipment   29,238  28,911  28,680  29,328  29,615
 Accrued interest receivable   5,963  6,009  6,037  6,061  6,075
 Mortgage servicing rights  4,257  4,220  4,217  4,041  4,206
 Goodwill  29,588  29,752  24,689  24,689  23,169
 Other intangible assets  22,351  22,855  17,504  18,014  18,536
 Bank owned life insurance ("BOLI")  19,765  19,658  19,552  19,434  19,321
 FHLB stock  10,717  10,746  11,009  11,588  12,198
 Net Deferred income tax asset  11,478  11,432  12,991  13,845  13,874
 Other investments  4,438  4,424  4,095  4,107  3,524
 Other assets  18,111  16,021  12,944  13,641  12,075
           
Total assets  $ 1,814,529  $ 1,853,355  $ 1,836,411  $ 1,773,373  $ 1,755,770
           
Liabilities and shareholders' equity          
           
 Interest-bearing checking  $ 226,206  $ 237,126  $ 235,841  $ 233,562  $ 224,609
 Money market  493,829  468,314  418,503  393,729  384,463
 Savings  132,402  133,204  135,912  130,613  130,910
 Wholesale non-maturity deposits  37,458  35,365  66,518  65,173  65,428
 Wholesale time deposits  9,942  22,505  22,062  23,550  28,992
 Time deposits   171,498  193,081  212,003  209,333  224,331
Interest-bearing deposits  1,071,335  1,089,595  1,090,839  1,055,960  1,058,733
           
 Non-interest bearing deposits  327,214  336,972  334,918  326,409  292,415
Total deposits  1,398,549  1,426,567  1,425,757  1,382,369  1,351,148
           
 Subordinated debentures  15,000  22,500  22,500  22,500  22,500
 Junior subordinated debentures  --  --  --  --  11,992
 Short-term borrowings  11,629  14,675  13,254  12,863  22,535
 FHLB advances and other borrowings  162,816  169,589  164,697  147,795  140,532
 Other liabilities  25,280  23,956  20,538  23,466  21,278
 Shareholders' equity  201,255  196,068  189,665  184,380  185,785
           
Total liabilities and shareholders' equity  $ 1,814,529  $ 1,853,355  $ 1,836,411  $ 1,773,373  $ 1,755,770
           
           
Bryn Mawr Bank Corporation          
Consolidated Quarterly Average Balance Sheets - (unaudited)        
(Dollars in thousands)          
           
  2012 2012 2012 2011 2011
  3Q 2Q 1Q 4Q 3Q
Assets          
           
 Interest bearing deposits with banks  $ 53,576  $ 57,542  $ 38,337  $ 56,570  $ 57,855
 Money market funds  191  192  219  109  108
 Investment securities - available for sale  328,051  321,420  304,215  279,405  283,254
 Investment securities - trading  1,343  1,546  1,437  1,319  1,338
 Loans held for sale  2,972  3,810  3,935  3,888  6,060
 Portfolio loans and leases   1,300,811  1,290,209  1,295,617  1,282,916  1,253,804
Earning assets  1,686,944  1,674,719  1,643,760  1,624,207  1,602,419
           
 Cash and due from banks  12,922  12,259  11,539  11,516  11,905
 Allowance for loan and lease losses  (13,337)  (13,383)  (13,089)  (12,110)  (11,790)
 Premises and equipment  29,077  28,866  29,095  29,586  29,706
 Goodwill  29,751  26,201  24,688  23,186  23,169
 Other intangible assets  22,580  21,427  17,804  18,319  18,860
 Bank owned life insurance  19,695  19,589  19,480  19,359  19,246
 Deferred income taxes  11,179  12,212  13,637  13,972  13,404
 Other assets  33,992  34,651  36,735  35,665  35,501
           
Total assets  $ 1,832,803  $ 1,816,541  $ 1,783,649  $ 1,763,700  $ 1,742,420
           
Liabilities and shareholders' equity          
           
 Interest-bearing checking  $ 229,853  $ 236,131  $ 227,817  $ 224,648  $ 225,569
 Money market  486,798  436,717  406,972  394,150  367,276
 Savings  133,315  133,105  132,451  132,617  131,421
 Wholesale non-maturity deposits  35,956  47,463  65,117  65,127  65,177
 Wholesale time deposits  13,809  22,280  22,354  27,749  29,187
 Time deposits  178,711  203,344  210,973  214,684  234,645
Interest-bearing deposits  1,078,442  1,079,040  1,065,684  1,058,975  1,053,275
           
 Non-interest bearing deposits  330,179  323,539  305,468  304,883  290,468
Total deposits  1,408,621  1,402,579  1,371,152  1,363,858  1,343,743
           
Subordinated debentures  21,114  22,500  22,500  22,500  22,500
Junior subordinated debentures  --  --  --  10,294  12,000
Short-term borrowings  13,273  13,149  13,885  15,147  10,908
FHLB advances and other borrowings  167,251  163,908  165,402  140,177  148,963
Other liabilities  25,100  23,158  25,259  24,991  21,482
Shareholders' equity  197,444  191,247  185,451  186,733  182,824
           
Total liabilities and shareholders' equity  $ 1,832,803  $ 1,816,541  $ 1,783,649  $ 1,763,700  $ 1,742,420
     
Bryn Mawr Bank Corporation    
Consolidated Average Balance Sheets - (unaudited)   
(Dollars in thousands)    
     
     
     
  2012 2011
   Year-to-Date   Year-to-Date 
Assets    
     
 Interest bearing deposits with banks  $ 49,832  $ 50,778
 Money market funds  201  167
 Investment securities - available for sale  317,932  296,524
 Investment securities - trading  1,442  1,345
 Loans held for sale  3,435  4,299
 Portfolio loans and leases  1,295,700  1,233,393
Earning assets  1,668,542  1,586,506
     
 Cash and due from banks  12,242  12,249
 Allowance for loan and lease losses  (13,270)  (11,157)
 Premises and equipment  29,013  29,389
 Goodwill  26,890  20,211
 Intangible assets  20,611  12,554
 Bank owned life insurance  19,588  19,130
 FHLB stock  10,824  12,851
 Deferred tax asset  12,339  14,133
 Other assets  24,298  25,013
     
Total assets  $ 1,811,077  $ 1,720,879
     
Liabilities and shareholders' equity    
     
 Interest-bearing checking  $ 231,262  $ 227,566
 Money market  443,654  353,965
 Savings  132,958  131,692
 Wholesale non-maturity deposits  49,462  68,691
 Wholesale time deposits  19,460  31,333
 Time deposits  197,607  237,948
Interest-bearing deposits  1,074,403  1,051,195
     
 Non-interest bearing deposits  319,767  281,714
Total deposits  1,394,170  1,332,909
     
 Subordinated debentures  22,035  22,500
 FHLB advances and other borrowings  165,717  147,189
 Junior subordinated debentures  --  12,012
 Short-term borrowings  13,244  10,110
 Other liabilities  24,508  23,095
 Shareholders' equity  191,403  173,064
     
Total liabilities and shareholders' equity  $ 1,811,077  $ 1,720,879
           
Bryn Mawr Bank Corporation          
Consolidated Selected Financial Data - (unaudited)          
(Dollars in thousands, except per share data )           
September 30, 2012          
                                     
                                     
For the period end:  2012 2012 2012 2011 2011                          
  3Q 2Q 1Q 4Q 3Q                          
Asset Quality Data                                    
                                     
Nonaccrual loans and leases  $ 13,816  $ 14,929  $ 22,570  $ 14,315  $ 14,208                          
90 + days past due loans - still accruing  --  3,376  --  --  --                          
Nonperforming loans and leases  13,816  18,305  22,570  14,315  14,208                          
Other real estate owned   412  865  404  549  1,301                          
Total nonperforming assets  $ 14,228  $ 19,170  $ 22,974  $ 14,864  $ 15,509                          
                                     
Troubled debt restructurings included in nonperforming  $ 3,740  $ 4,005  $ 4,223  $ 4,300  $ 901                          
Troubled debt restructurings in compliance with modified terms  8,379  8,302  7,970  7,166  7,182                          
Total troubled debt restructurings  $ 12,119  $ 12,307  $ 12,193  $ 11,466  $ 8,083                          
                                     
Nonperforming loans and leases / portfolio loans 1.05% 1.41% 1.73% 1.11% 1.11%                          
Nonperforming assets / assets 0.78% 1.03% 1.25% 0.84% 0.88%                          
                                     
Net loan charge-offs (recoveries) (annualized) / average loans  0.16% 0.26% 0.21% -0.02% 0.49%                          
Net lease (recoveries) charge-offs (annualized) / average leases  -0.23% 0.94% 0.67% 0.22% 0.37%                          
Net loan and lease charge-offs (recoveries) (annualized) / average loans and leases  0.16% 0.28% 0.23% -0.01% 0.49%                          
                                     
Delinquency rate - loans and leases >30days  1.01% 1.36% 1.52% 1.37% 1.33%                          
                                     
Delinquent loans and leases - 30-89 days   $ 1,954  $ 2,722  $ 5,468  $ 5,311  $ 4,480                          
                                     
Delinquency rate - loans and leases 30-89 days  0.15% 0.21% 0.28% 0.29% 0.35%                          
                                     
Changes in the allowance for loan and lease losses                                    
                                     
Balance, beginning of period  $ 13,140  $ 13,040  $ 12,753  $ 11,654  $ 11,341                          
                                     
Charge-offs  (618)  (960)  (839)  (466)  (1,817)                          
                                     
Recoveries  116  57  126  509  302                          
                                     
Net (charge-offs) / recoveries  (502)  (903)  (713)  43  (1,515)                          
                                     
Provision for loan and lease losses  1,000  1,003  1,000  1,056  1,828                          
                                     
Balance, end of period  $ 13,638  $ 13,140  $ 13,040  $ 12,753  $ 11,654                          
                                     
Allowance for loan and lease losses / loans and leases 1.04% 1.01% 1.00% 0.98% 0.91%                          
Allowance for loan and lease losses / nonperforming loans and leases 98.7% 71.8% 57.8% 89.1% 82.0%                          
                                     
Bryn Mawr Bank Corporation          
Consolidated Selected Financial Data - (unaudited)          
(Dollars in thousands, except per share data )           
September, 2012          
                                     
                                     
For the period and period end:  2012 2012 2012 2011 2011                          
  3Q 2Q 1Q 4Q 3Q                          
Selected ratios (annualized):                                    
                                     
Return on average assets 1.18% 1.18% 1.14% 1.13% 1.14%                          
Return on average shareholders' equity 10.93% 11.24% 11.00% 10.63% 11.35%                          
Return on average tangible equity (a non-GAAP measure) (2) 14.87% 14.97% 14.27% 13.67% 14.74%                          
Yield on loans and leases*  5.21% 5.31% 5.33% 5.45% 5.52%                          
Yield on interest earning assets*  4.28% 4.39% 4.51% 4.59% 4.64%                          
Cost of interest bearing funds 0.66% 0.72% 0.76% 0.88% 0.96%                          
Net interest margin* 3.78% 3.84% 3.93% 3.91% 3.90%                          
Book value per share  $ 15.02  $ 14.73  $ 14.40  $ 14.07  $ 14.29                          
Tangible book value per share  $ 11.14  $ 10.77  $ 11.20  $ 10.78  $ 11.08                          
Period end shares outstanding  13,399,635  13,316,469  13,168,555  13,106,353  12,999,712                          
                                     
Selected data:                                     
                                     
Mortgage loans originated  $ 64,455  $ 51,427  $ 55,385  $ 60,467  $ 38,998                          
                                     
Mortgage loans sold - servicing retained  $ 54,992  $ 41,986  $ 32,778  $ 20,883  $ 26,090                          
Mortgage loans sold - servicing released  --  2,238  1,223  1,164  1,922                          
Total mortgage loans sold  $ 54,992  $ 44,224  $ 34,001  $ 22,047  $ 28,012                          
                                     
Yield on loans sold 3.34% 2.95% 3.44% 3.17% 2.73%                          
                                     
Mortgage loans serviced for others   $ 583,859  $ 575,533  $ 571,440  $ 574,422  $ 593,125                          
                                     
Total Wealth assets under management / administration / supervision / brokerage (1)  $ 6,482,835  $ 6,275,940  $ 5,152,965  $ 4,831,631  $ 4,501,433                          
                                     
 * Yield on loans and leases, interest earning assets and net interest margin are calculated on a tax equivalent basis.          
 (1) Brokerage Assets represent assets held at a registered broker dealer under a networking agreement.          
 (2) Tangible equity equals shareholders' equity minus goodwill and other intangible assets.           
                                     
Bryn Mawr Bank Corporation          
Consolidated Selected Financial Data - (unaudited)          
(Dollars in thousands, except per share data )           
September, 2012          
                                     
      2012   2011                          
       Year-to-date     Year-to-date                           
Selected ratios (annualized):                                    
                                     
Return on average assets     1.17%   1.13%                          
Return on average shareholders' equity     11.06%   11.28%                          
Return on average tangible equity (a non-GAAP measure) (2)     14.71%   13.91%                          
Yield on loans and leases*      5.29%   5.60%                          
Yield on interest earning assets*      4.40%   4.74%                          
Cost of interest bearing funds     0.71%   0.96%                          
Net interest margin*     3.85%   3.99%                          
                                     
Selected data:                                     
                                     
Mortgage loans originated      $ 171,267    $ 108,214                          
                                     
Mortgage loans sold - servicing retained      $ 129,756    $ 54,349                          
Mortgage loans sold - servicing released      3,461    5,066                          
Total mortgage loans sold      $ 133,217    $ 59,415                          
                                     
 * Yield on loans and leases, interest earning assets and net interest margin are calculated on a tax equivalent basis.          
 (2) Tangible equity equals shareholders' equity minus goodwill and other intangible assets.           
                                     
                                     
                                     
                                     
Investment Portfolio - AFS As of September 30, 2012   As of December 31, 2011 As of Sept, 2011
($'s in thousands)                                    
      Net       Net                     Net
  Amortized Fair Unrealized   Amortized Fair Unrealized                 Amortized Fair Unrealized
SECURITY DESCRIPTION Cost Value Gain / (Loss)   Cost Value Gain / (Loss)                 Cost Value Gain / (Loss)
                                     
 Obligations of U. S. government and agencies   $ 83,472  $ 84,354  $ 882    $ 104,252  $ 104,570  $ 318                  $ 114,072  $ 114,509  $ 437
 State & political subdivisions  19,240  19,445  205    8,210  8,366  156                  3,428  3,467  39
 Mortgage backed securities  125,573  129,411  3,838    95,713  97,834  2,121                  104,783  107,097  2,314
 Collateralized mortgage obligations  65,168  65,621  453    32,418  32,623  205                  21,695  21,920  225
 Equity securities  --  --  --    --  --  --                  243  284  41
 Other debt securities  1,900  1,900  --    1,900  1,882  (18)                  1,400  1,400   --
 Bond - mutual funds  11,456  11,504  48    12,091  11,904  (187)                  11,940  11,860  (80)
 Investment CD's  2,365  2,382  17    2,411  2,420  9                  2,425  2,430  5
 Other investments  1,798  2,027  229    1,454  1,505  51                  1,463  1,458  (5)
 Corporate bonds  --  --  --    12,616  12,718  102                  12,664  12,762 98 
Total Investment Portfolio  $ 310,972  $ 316,644  $ 5,672    $ 271,065  $ 273,822  $ 2,757                  $ 274,113  $ 277,187  $ 3,074
                                     
Capital Ratios                                    
  Regulatory Minimum                                  
Bryn Mawr Trust Company Consolidated To Be                                  
  Well Capitalized 9/30/2012 6/30/2012 3/31/2012 12/31/2011 9/30/2011                        
                                     
Tier I Capital to Risk Weighted Assets (RWA) 6.00% 11.99% 11.75% 12.17% 11.76% 11.31%                        
Total (Tier II) Capital to RWA 10.00% 14.09% 14.36% 14.78% 14.35% 13.81%                        
Tier I Leverage Ratio 5.00% 9.23% 9.14% 9.56% 9.35% 9.14%                        
Tangible Equity Ratio   8.85% 8.41% 8.70% 8.66% 8.78%                        
                                     
Bryn Mawr Bank Corporation                                    
                                     
Tier I Capital to Risk Weighted Assets (RWA) 6.00% 11.64% 11.30% 11.52% 11.16% 11.62%                        
Total (Tier II) Capital to RWA 10.00% 13.74% 13.90% 14.23% 13.74% 14.11%                        
Tier I Leverage Ratio 5.00% 8.98% 8.80% 9.07% 8.89% 9.40%                        
Tangible Equity Ratio   8.58% 8.07% 8.22% 8.19% 8.41%                        
                               
Bryn Mawr Bank Corporation
Quarterly Average Balances and Tax Equivalent Income and Expense and Tax Equivalent Yields - (unaudited)
                               
                               
  3rd Quarter 2012  2nd Quarter 2012  1st Quarter 2012  4th Quarter 2011  3rd 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  $ 53,576  $ 34 0.25%  $ 57,542  $ 30 0.21%  $ 38,337  $ 23 0.24%  $ 56,570  $ 27 0.19%  $ 57,855  $ 29 0.20%
Money market funds 191  --  -- 192  -- -- 219  -- -- 109  -- -- 108  -- --
Investment securities available for sale:                              
 Taxable 309,570 960 1.23% 307,371 1,067 1.40% 294,593 1,136 1.55% 272,869 1,055 1.53% 279,321 1,171 1.66%
 Tax-exempt 18,481 82 1.77% 14,049 66 1.89% 9,622 53 2.22% 6,536 31 1.88% 3,933 18 1.82%
Investment securities available for sale  328,051 1,042 1.26% 321,420 1,133   304,215 1,189 1.57% 279,405 1,086 1.54% 283,254 1,189 1.67%
                               
Investment securities - trading 1,343 5 1.48% 1,546 12 1.42% 1,437 4 1.12% 1,319 8 2.41% 1,338 8 2.37%
                               
Loans and leases * 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% 1,259,864 17,529 5.52%
                               
 Total interest earning assets  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% 1,602,419 18,755 4.64%
                               
Cash and due from banks 12,922     12,259     11,539     11,516     11,905    
Less allowance for loan and lease losses (13,337)     (13,383)     (13,089)     (12,110)     (11,790)    
Other assets  146,274     142,946     141,439     140,087     139,886    
                               
 Total assets  $ 1,832,803      $ 1,816,541      $ 1,783,649      $ 1,763,700      $ 1,742,420    
                               
Liabilities:                              
                               
Savings, NOW and market rate deposits  $ 849,966  $ 567 0.27%  $ 805,953  $ 586 0.29%  $ 767,240  $ 559 0.29%  $ 751,415  $ 711 0.38%  $ 724,266  $ 772 0.42%
Other wholesale deposits 35,956 34 0.38% 47,463 43 0.36% 65,117 53 0.33% 65,127 50 0.30% 65,177 51 0.31%
Wholesale deposits 13,809 21 0.60% 22,280 24 0.43% 22,354 24 0.43% 27,749 73 1.04% 29,187 86 1.17%
Time deposits  178,711 316 0.70% 203,344 412 0.81% 210,973 490 0.93% 214,684 520 0.96% 234,645 585 0.99%
 Total interest-bearing deposits 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% 1,053,275 1,494 0.56%
                               
Subordinated debentures 21,114 271 5.11% 22,500 291 5.20% 22,500 291 5.20% 22,500 287 5.06% 22,500 279 4.92%
Junior subordinated debentures -- -- ---  --   --  --  --   --  -- 10,294 236 9.10% 12,000 271 8.96%
Short-term borrowings 13,273 4 0.12% 13,149 5 0.15% 13,885 6 0.17% 15,147 6 0.16% 10,908 6 0.22%
FHLB advances and other borrowings 167,251 918 2.18% 163,908 924 2.27% 165,402 964 2.34% 140,177 889 2.52% 148,963 968 2.58%
 Total Borrowings 201,638 1,193 2.35% 199,557 1,220 2.46% 201,787 1,261 2.51% 188,118 1,418 2.99% 194,371 1,524 3.11%
                               
 Total interest-bearing liabilities 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% 1,247,646 3,018 0.96%
                               
Noninterest-bearing deposits 330,179     323,539     305,468     304,883     290,468    
Other liabilities 25, 259     23,158     25,259     24,991     21,482    
 Total noninterest-bearing liabilities 355,279     346,697     330,727     329,874     311,950    
                               
 Total liabilities 1,635,359     1,625,294     1,598,198     1,576,967     1,559,596    
                               
Shareholders' equity  197,444     191,247     185,451     186,733     182,824    
                               
 Total liabilities and shareholders' equity   $ 1,832,803      $ 1,816,541      $ 1,783,649      $ 1,763,700      $ 1,742,420    
                               
Interest income to earning assets     4.28%     4.39%     4.51%     4.59%     4.64%
                               
Net interest spread     3.62%     3.67%     3.75%     3.71%     3.68%
Effect of noninterest-bearing sources     0.16%     0.17%     0.18%     0.20%     0.22%
                               
Net interest income/ margin on earning assets  $ 16,039 3.78%    $ 15,984 3.84%    $ 16,063 3.93%    $ 16,021 3.91%    $ 15,737 3.90%
                               
Tax equivalent adjustment     $ 88 0.02%    $ 81 0.02%    $ 79 0.02%    $ 66 0.02%    $ 64 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.            
 
Bryn Mawr Bank Corporation
Average Balances and Tax Equivalent Income and Expense and Tax Equivalent Yields 
For the Nine Months ended September 30,
             
  2012     2011    
      Average     Average 
    Interest   Rates    Interest   Rates
  Average  Income/  Earned/  Average Income/   Earned/ 
(dollars in thousands) Balance  Expense Paid  Balance  Expense  Paid
             
Assets:            
Interest-bearing deposits with other banks  $ 49,832  86 0.23%  $ 50,778  $ 88 0.23%
Federal funds sold  --   --  --  --   -- --%
Money market funds  201  --  % 167 1 0.80%
Investment securities available for sale:            
 Taxable  303,865  3,166 1.39% 283,354 3,824 1.80%
 Tax-exempt  14,067  224 2.13% 11,486 287 3.34%
             
Investment securities - available for sale  317,932  3,390 1.42% 294,840 4,111 1.86%
             
Investment securities - trading  1,442  21 1.95% 1,345 24 2.39%
             
Loans and leases *  1,299,135  51,473 5.29% 1,237,692 51,882 5.60%
             
 Total interest earning assets  1,668,542  54,949 4.40% 1,583,477 56,106 4.74%
             
Cash and due from banks  12,242     12,249    
Less allowance for loan and lease losses  (13,270)     (11,157)    
Other assets   143,563     137,793    
             
 Total assets $1,811,077     $1,722,362    
             
Liabilities:            
             
Savings,NOW and market rate deposits $807,874  $ 1,712 0.28% $713,223  $ 2,247 0.42%
Other wholesale deposits  49,463  131 0.35%  68,691  174 0.34%
Wholesale deposits  19,459  68 0.47%  31,333  248 1.06%
Time deposits  197,607  1,217 0.82% 237,948 1,765 0.99%
 Total interest-bearing deposits  1,074,403  3,128 0.39% 1,051,195 4,434 0.56%
             
Subordinated debt  22,035  852 5.16% 22,500 835 4.96%
Junior subordinated debentures  --  --  -- 12,012 814 9.06%
Short-term borrowings  13,244  14 0.14% 10,110 19 0.25%
FHLB advances and other borrowings  165,717  2,808 2.26% 147,189 2,787 2.53%
 Total Borrowings  200,996  3,674 2.44%  191,811  4,455 3.11%
             
 Total interest-bearing liabilities  1,275,399  6,802 0.71% 1,243,006 8,889 0.96%
             
             
Noninterest-bearing deposits  319,767     281,714    
Other liabilities   24,508     23,095    
 Total noninterest-bearing liabilities  344,275     304,809    
             
 Total liabilities   1,619,674     1,547,815    
             
Shareholders' equity   191,403     174,547    
             
 Total liabilities and shareholders' equity  $ 1,811,077     $1,722,362    
             
Interest income to earning assets     4.40%     4.74%
             
Net interest spread     3.69%     3.78%
Effect of noninterest-bearing sources     0.16%     0.21%
             
Net interest income/ margin on earning assets    $ 48,147 3.85%    $ 47,217 3.99%
             
Tax equivalent adjustment     $ 307 0.02%    $ 270 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.
 
Effect of Immaterial Correction of Accounting Error
                         
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 For The Three Months Ended September 30, 2011
  Originally
Reported
Corrected Difference 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)  $ 5,022  $ 5,230  $ 208
Basic earnings per common share  $ 0.40  $ 0.41  $ 0.01  $ 0.40  $ 0.39  $ (0.01)  $ 0.40  $ 0.39  $ (0.01)  $ 0.39  $ 0.41  $ 0.02
Diluted earnings per common share  $ 0.40  $ 0.40  $ --   $ 0.40  $ 0.39  $ (0.01)  $ 0.39  $ 0.39  $ --   $ 0.39  $ 0.41  $ 0.02
                         
  For The Nine Months Ended September 30, 2011                  
  Originally
Reported
Corrected Difference                  
                         
Net Income  $ 14,543  $ 14,598  $ 55                  
Basic earnings per common share  $ 1.15  $ 1.16  $ 0.01                  
Diluted earnings per common share  $ 1.15  $ 1.16  $ 0.01                  
                         
Balance Sheet Effect
(dollars in thousands except share data)  
  As of June 30, 2012 As of March 31, 2012 As of December 31, 2011 As of September 30, 2011
  Originally
Reported
Corrected Difference 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)  $ 1,757,119  $ 1,755,770  $ (1,349)
Retained earnings  $ 132,837  $ 132,420  $ (417)  $ 129,702  $ 129,201  $ (501)  $ 126,582  $ 126,242  $ (340)  $ 123,377  $ 123,203  $ (174)
Cost of treasury stock  $ 29,789  $ 30,901  $ 1,112  $ 29,833  $ 30,995  $ 1,162  $ 29,833  $ 31,027  $ 1,194  $ 29,833  $ 31,008  $ 1,175
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  2,909,542  2,996,600  87,058
CONTACT: Ted Peters, Chairman 610-581-4800 J. Duncan Smith, CFO 610-526-2466
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