Market Overview

Bryn Mawr Bank Corporation Reports First Quarter Net Income of $8.3 Million, Driven by Strong Loan Growth, Net Interest Margin Expansion and Reduced Operating Expenses; Core Net Income Up From Prior Quarter

Share:

BRYN MAWR, Pa., April 28, 2016 (GLOBE NEWSWIRE) -- Bryn Mawr Bank Corporation (NASDAQ: BMTC) (the "Corporation"), parent of The Bryn Mawr Trust Company (the "Bank"), today reported net income of $8.3 million and diluted earnings per share of $0.49 for the three months ended March 31, 2016, as compared to a net loss of $6.4 million, or $(0.37) diluted loss per share for the three months ended December 31, 2015 and net income of $7.5 million, or $0.42 diluted earnings per share for the three months ended March 31, 2015.

On a non-GAAP basis, core net income, which excludes certain non-core income and expense items, as detailed in the appendix to this earnings release, was also $8.3 million for the three months ended March 31, 2016 as compared to $7.5 million for the three months ended December 31, 2015 and $8.9 million for the three months ended March 31, 2015. Management believes the core net income measure is important in evaluating the Corporation's performance on a more comparable basis between periods. A reconciliation of this and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release.

"We are very pleased to start the new year on a positive note," commented Frank Leto, President and Chief Executive Officer, continuing, "Many of the decisions we made in 2015, which included the addition of new teams and talent, branch and office consolidations, significant investments in technology, and the settlement of our corporate pension plan, to name a few, positioned the Corporation well for a strong start to the new year and provide a solid foundation from which we will drive long-term performance." Mr. Leto added, "The outstanding loan growth during the first quarter of 2016, which exceeded 19% annualized, along with a 41% increase in mortgage originations during the first quarter of 2016, compared to the first quarter of 2015, as well as the continued growth in our wealth assets are all promising indicators for the remainder of 2016."

On April 28, 2016, the Board of Directors of the Corporation declared a quarterly dividend of $0.20 per share, payable June 1, 2016 to shareholders of record as of May 10, 2016.

SIGNIFICANT ITEMS OF NOTE
Results of Operations – First Quarter 2016 Compared to Fourth Quarter 2015

  • Net income for the three months ended March 31, 2016 was $8.3 million, as compared to a net loss of $6.4 million for the three months ended December 31, 2015. The primary driver of the loss in the fourth quarter of 2015 was the loss on settlement of the corporate pension plan, which resulted in a $17.4 million pre-tax charge. On a core basis (a non-GAAP measure detailed in the appendix to this earnings release), core net income for the first quarter of 2016 of $8.3 million was a $778 thousand increase from core net income of $7.5 million for the fourth quarter of 2015. The increase in core net income was primarily driven by a $473 thousand increase in net interest income and a $367 thousand decrease in the provision for loan and lease losses (the "Provision").
     
  • Net interest income for the three months ended March 31, 2016 was $25.9 million, an increase of $473 thousand from $25.4 million for the three months ended December 31, 2015. The increase in net interest income between the periods was largely related to loan growth during the first quarter of 2016. Average loans and leases for the three months ended March 31, 2016 increased by $60.9 million as compared to the fourth quarter of 2015. The increase in average loans was accompanied by a 5 basis point increase in tax-equivalent yield earned on loans, resulting in a $616 thousand increase in interest income on loans and leases. Partially offsetting the increase in average loans and leases was a $51.8 million decrease in average interest-bearing deposits with banks. This decrease in cash deposits resulted in a $17 thousand decrease in interest earned on deposits with banks. On the liability side, average interest-bearing deposits increased by $22.1 million, resulting in a $30 thousand increase in interest expense on deposits.
     
  • The tax-equivalent net interest margin of 3.87% for the three months ended March 31, 2016 increased 10 basis points from 3.77% for the fourth quarter of 2015. The increase was primarily the result of a $60.9 million increase in average loans and leases during the first quarter of 2016. The tax equivalent yield earned on loans and leases during the first quarter of 2016 was 4.67%. The increase in average loans and leases was largely offset by a $51.8 million decrease in average interest-bearing deposits with banks, which earned interest at a rate of 0.47% during the first quarter of 2016 and 0.28% during the fourth quarter of 2015. The contribution of fair value mark accretion to the tax equivalent net interest margin accounted for 16 basis points of the margin for the first quarter of 2016 as compared to 13 basis points for the fourth quarter of 2015.
     
  • Non-interest income for the three months ended March 31, 2016 decreased $460 thousand from the fourth quarter of 2015. The decrease was related to a decrease in fees for wealth management services of $163 thousand, a $76 thousand loss on sale of other real estate owned, a $116 thousand decrease in dividends on Federal Home Loan Bank ("FHLB") and Federal Reserve Bank ("FRB") stocks, and a $392 thousand decrease in other operating income. The decrease in other operating income was related to the $319 thousand of noninterest income recorded in the fourth quarter of 2015 in connection with the full payoff of a purchased credit-impaired loan. Partially offsetting the decreases was an increase of $434 thousand in insurance revenues related to contingent commissions received from insurance carriers.
     
  • Non-interest expense for the three months ended March 31, 2016 decreased $21.9 million, to $25.1 million, as compared to $47.0 million for the fourth quarter of 2015. The primary cause for the decrease was a $17.4 million loss on settlement of the corporate pension plan and a $929 thousand branch lease termination expense recorded in the fourth quarter of 2015, both of which did not reoccur, and a $1.9 million decrease in due diligence, merger-related and merger integration costs between the periods. Partially offsetting these decreases was a $684 thousand increase in Pennsylvania bank shares tax. The Pennsylvania bank shares tax is based on the Bank's equity base as of December 31, 2015, which increased due to the acquisition of Continental Bank. In addition, during the fourth quarter of 2015, the Bank received tax credits related to its contributions under the Pennsylvania Educational Improvement Tax Credit (EITC) program.
     
  • For the three months ended March 31, 2016, the Corporation recorded net loan and lease charge-offs of $422 thousand, as compared to $1.9 million for the fourth quarter of 2015. The Provision for the three months ended March 31, 2016 was $1.4 million, as compared to $1.8 million for the fourth quarter of 2015. The disparity between the $367 thousand, or 20.7%, decrease in Provision from the fourth quarter of 2015 to the first quarter of 2016, relative to the $1.4 million, or 77.3%, decrease in net charge-offs between the periods was primarily driven by the loan growth between the dates.

Results of Operations – First Quarter 2016 Compared to First Quarter 2015

  • Net income for the three months ended March 31, 2016 was $8.3 million, as compared to $7.5 million for the same period in 2015. Significantly contributing to the increase was a $1.1 million increase in net interest income and a $2.5 million reduction in due diligence, merger-related and merger integration costs, partially offset by an $841 thousand increase in the Provision, an $825 thousand decrease in gain on sale of available for sale investment securities and an $868 thousand increase in salaries and wages.
     
  • Net interest income for the three months ended March 31, 2016 was $25.9 million, an increase of $1.1 million, or 4.5%, from $24.8 million for the same period in 2015. The increase in net interest income between the periods was largely related to loan growth between the periods. Average loans and leases for the three months ended March 31, 2016 increased by $225.7 million from the same period in 2015. The increase in average balances was offset by a 24 basis point decrease in tax-equivalent yield earned on loans and leases. The net effect of the yield decrease and volume increase on average loans and leases was a $1.5 million increase in interest income on loans. On the liability side, a $26.7 million decrease in average interest-bearing deposits was offset by a $29.5 million increase in average subordinated notes, related to the issuance, during the third quarter of 2015, of $30 million of 4.5% fixed-to-floating rate subordinated notes. The interest expense effect of the decrease in interest-bearing deposits, which saw a rate decrease of 1 basis point, combined with the increase in average subordinated notes, which paid interest at 4.99%, was a net increase in interest expense of $408 thousand.
     
  • The tax-equivalent net interest margin of 3.87% for the three months ended March 31, 2016 was an 8 basis point increase from 3.79% for the same period in 2015. The increase was largely the result of the $167.6 million reduction in low-yielding interest-bearing deposits with banks and the $225.7 million increase in average loans and leases. The tax-equivalent yield earned on loans and leases for the three months ended March 31, 2016 was 4.67%. Partially offsetting the effect of the loan growth on the tax-equivalent interest margin was the $29.5 million increase in average subordinated notes at a rate of 4.99% for the first quarter of 2016 as compared to the same period in 2015. The contribution of fair value mark accretion to the tax equivalent net interest margin accounted for 16 basis points of the margin for the first quarter of 2016 as compared to 22 basis points for the first quarter of 2015.
     
  • Non-interest income for the three months ended March 31, 2016 decreased $1.6 million as compared to the same period in 2015. Largely contributing to this decrease was an $825 thousand decrease in net gain on sale of available for sale investment securities, a $401 thousand decrease in dividends on FHLB and FRB stocks and a $273 thousand decrease in fees for wealth management services. During the three months ended March 31, 2016, $80 thousand of available for sale investment securities, related to a rabbi trust, were sold, resulting in a net loss of $15 thousand as compared to the $63.2 million of available for sale investment securities sold during the first quarter of 2015, much of which had been acquired from Continental Bank, and which resulted in a net gain on sale of $810 thousand. The decrease in dividends on FHLB and FRB stocks was related to the $448 thousand special dividend issued by the FHLB in the first quarter of 2015 which was not repeated in 2016. The decrease in wealth revenue largely related to the shifting of the composition of the wealth portfolio to lower-yielding, fixed-fee accounts. Although assets under management administration, supervision and brokerage increased by $1.47 billion from March 31, 2015 to March 31, 2016, the portion of the portfolio which derives its fees from market value changes declined, offset by increases in the lower-yielding fixed-fee accounts. This shift serves to reduce the earnings volatility associated with market movement.
     
  • Non-interest expense for the three months ended March 31, 2016 decreased $2.4 million, to $25.0 million, as compared to $27.4 million for the same period in 2015. Largely accounting for the decrease was a $2.5 million decrease in due diligence, merger-related and merger integration costs, a $273 thousand decrease in advertising expense and a $244 thousand decrease in employee benefits. The merger expense and higher advertising expense during the first quarter of 2015 were related to the January 1, 2015 Continental Bank acquisition. The decrease in employee benefits was related to the December 2015 settlement of the corporate pension plan, not only due to the elimination of the recurring pension costs associated with a defined benefits plan, but also due to the excess assets remaining in the plan at settlement. For the three months ended March 31, 2016, excess assets from the settled pension plan were used to reduce 401(k) contribution costs by $300 thousand. Partially offsetting these decreases were increases of $868 thousand in salaries related to staff additions, which included the April 2015 Robert J. McAllister Agency acquisition, the October 2015 formation of the Key Capital Mortgage, Inc. subsidiary, and additions to our lending teams in our residential mortgage operation and our Hershey office, as well as the addition of a number of key senior management positions which had become vacant since the first quarter of 2015.
     
  • Nonperforming loans and leases totaled $9.6 million as of March 31, 2016, representing 0.41% of total portfolio loans and leases, as compared to $9.1 million, or 0.44% of total portfolio loans and leases as of March 31, 2015. For the three months ended March 31, 2016, the Corporation recorded net loan and lease charge-offs of $422 thousand, as compared to $859 thousand for the same period in 2015. The decrease of net charge-offs between periods was the result of impairment analyses on collateral-dependent loans which identified collateral shortfalls and determined appropriate charge-offs. Based on the analyses performed as of March 31, 2016, and the full or partial charge-offs recorded, management believes there is sufficient collateral to cover the principal balances of the collateral-dependent loans. The Provision for the three months ended March 31, 2016 was $1.4 million as compared to $569 thousand for the same period in 2015. The increase in the Provision for the first quarter of 2016 was largely driven by the increases in loan volume which were concentrated in the commercial mortgage and construction segments of the portfolio.       

Financial Condition – March 31, 2016 Compared to December 31, 2015

  • Total portfolio loans and leases of $2.38 billion as of March 31, 2016 increased by $109.9 million from December 31, 2015. Loan growth was concentrated in the commercial mortgage and construction categories, which increased $80.2 million and $28.8 million, respectively, during the first quarter of 2016.
     
  • The allowance for loan and lease losses (the "Allowance") as of March 31, 2016 was $16.8 million, or 0.71% of portfolio loans as compared to $15.9 million, or 0.70% of portfolio loans and leases, as of December 31, 2015. In addition to the ratio of Allowance to portfolio loans, management considers two non-GAAP measures: the Allowance as a percentage of originated loans and leases, which was 0.83% as of March 31, 2016, as compared to 0.84% as of December 31, 2015, and the Allowance plus the remaining loan mark as a percentage of gross loans, which was 1.37% as of March 31, 2016, as compared to 1.44% as of December 31, 2015. A reconciliation of these and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release.
     
  • Available for sale investment securities as of March 31, 2016 were $365.8 million, an increase of $16.9 million from December 31, 2015. Increases of $23.7 million in mortgage-related securities were partially offset by decreases of $5.4 million in U.S. government securities.
     
  • Total assets as of March 31, 2016 were $3.06 billion, an increase of $27.3 million from December 31, 2015. Increases in loans and leases and available for sale investment securities were partially offset by reductions in interest-bearing deposits with banks, which decreased by $90.7 million.
     
  • Wealth assets under management, administration, supervision and brokerage totaled $9.28 billion as of March 31, 2016, an increase of $916.9 million from December 31, 2015. However, due to the change in the composition of the assets held in the wealth portfolio, fees for wealth management services did not grow proportionately, as more of the portfolio was comprised of assets held in lower-yielding fixed-fee accounts.
     
  • Deposits of $2.34 billion as of March 31, 2016 increased $91.3 million from December 31, 2015. A significant portion of the growth in deposits was in the wholesale sector, which grew by $72.7 million.
     
  • The capital ratios for the Bank and the Corporation, as of March 31, 2016, as shown in the attached tables, indicate levels well above the regulatory minimum to be considered "well capitalized." The capital ratios of the Bank increased from the fourth quarter of 2015 primarily as a result of a $15.0 million downstream of capital from the Corporation during the first quarter. The capital ratios of the Corporation decreased from the fourth quarter of 2015, as shareholders' equity decreased $534 thousand, while total assets increased by $27.3 million. The decrease in shareholders' equity occurred as a result of dividend payments and the repurchase, during the first quarter of 2016, of $8.0 million of treasury shares.      

EARNINGS CONFERENCE CALL
The Corporation will hold an earnings conference call at 8:30 a.m. Eastern Time on Friday, April 29, 2016.  Interested parties may participate by dialing (toll-free) 1-877-504-8812 (international (toll) 1-412-902-6656).  A recorded replay of the conference call will be available one hour after the conclusion of the call and will remain available through May 13, 2016.  The recorded replay may be accessed by dialing (toll-free) 1-877-344-7529 (international (toll) 1-412-317-0088).The conference number is 10083628.

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 website. To access the call, please visit the website at http://services.choruscall.com/links/bmtc160429. 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," "indicate," "estimate," "target," "potentially," "promising," "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 acquired businesses with the Corporation's may take longer than anticipated or be more costly to complete and that the anticipated benefits, including any anticipated cost savings or strategic gains may be significantly harder to achieve or take longer than anticipated or may not be achieved, our need for capital, our ability to control operating costs and expenses, and to manage loan and lease delinquency rates; the credit risks of lending activities and overall quality of the composition of our loan, lease and securities portfolio; the impact of economic conditions, consumer and business spending habits, and real estate market conditions on our business and in our market area; changes in the levels of general interest rates, deposit interest rates, or net interest margin and funding sources; changes in banking regulations and policies and the possibility that any banking agency approvals we might require for certain activities will not be obtained in a timely manner or at all or will be conditioned in a manner that would impair our ability to implement our business plans; changes in accounting policies and practices; the inability of key third-party providers to perform their obligations to us; our ability to attract and retain key personnel; competition in our marketplace; war or terrorist activities; material differences in the actual financial results, cost savings and revenue enhancements associated with our acquisitions; and other factors as described in our securities filings.  All forward-looking statements and information set forth herein are based on management's current beliefs and assumptions as of the date hereof and speak only as of the date they are made.  The Corporation does not undertake to update forward-looking statements.

For a complete discussion of the assumptions, risks and uncertainties related to our business, you are encouraged to review our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K, as updated by our quarterly or other reports subsequently filed with the SEC.

             
Bryn Mawr Bank Corporation            
Summary Financial Information (unaudited)            
(dollars in thousands, except per share data)            
 As of or For the Three Months Ended   
 March 31, 2016 December 31, 2015 September 30, 2015 June 30, 2015 March 31, 2015   
Consolidated Balance Sheet (selected items)            
Interest-bearing deposits with banks$  33,954  $  124,615  $  100,980  $  156,282  $  244,248    
Investment securities (available for sale and trading)   369,461     352,916     344,872     353,525     338,781    
Loans held for sale   7,807     8,987     8,721     15,363     6,656    
Portfolio loans and leases   2,378,841     2,268,988     2,228,764     2,153,263     2,088,531    
Allowance for loan and lease losses ("ALLL")   (16,845)    (15,857)    (15,935)    (14,959)    (14,296)   
Goodwill and other intangible assets   127,777     128,668     129,694     130,631     128,141    
Total assets   3,058,247     3,030,997     2,952,742     2,950,014     2,943,179    
Deposits - interest-bearing   1,700,550     1,626,041     1,634,237     1,624,257     1,658,869    
Deposits - non-interest-bearing   643,492     626,684     605,607     636,390     582,495    
Short-term borrowings   37,010     94,167     24,264     26,406     38,372    
Long-term FHLB advances and other borrowings   249,832     254,863     254,893     244,923     250,088    
Subordinated notes   29,491     29,479     29,466     -     -    
Total liabilities   2,693,070     2,665,286     2,584,587     2,568,916     2,565,276    
Shareholders' equity   365,177     365,711     368,155     381,098     377,903    
             
Average Balance Sheet (selected items)            
Interest-bearing deposits with banks$  39,050  $  90,832  $  165,723  $  182,099  $  206,694    
Investment securities (available for sale and trading)   360,957     354,239     356,028     351,080     374,190    
Loans held for sale   5,481     7,531     10,527     6,735     3,470    
Portfolio loans and leases   2,303,103     2,240,189     2,181,125     2,111,371     2,079,412    
Total interest-earning assets   2,708,591     2,692,791     2,713,403     2,651,285     2,663,766    
Goodwill and intangible assets   128,296     129,292     130,241     129,116     125,060    
Total assets   2,973,148     2,959,011     2,981,308     2,910,701     2,918,156    
Deposits - interest-bearing   1,633,651     1,611,574     1,644,976     1,628,759     1,660,330    
Short-term borrowings   34,158     26,092     28,166     34,980     55,207    
Long-term FHLB advances and other borrowings   250,015     254,880     248,606     249,678     266,342    
Subordinated notes   29,482     29,471     18,190     -     -    
Total interest-bearing liabilities   1,947,306     1,922,017     1,939,938     1,913,417     1,981,879    
Total liabilities   2,612,276     2,593,651     2,604,704     2,531,547     2,547,217    
Shareholders' equity   360,872     365,360     376,604     379,154     370,939    
             
Income Statement            
Net interest income$  25,902  $  25,429  $  24,833  $  25,070  $  24,795    
Provision for loan and lease losses   1,410     1,777     1,200     850     569    
Noninterest income   13,208     13,668     13,350     14,177     14,765    
Noninterest expense   25,051     46,951     25,403     25,982     27,429    
Income tax expense (benefit)   4,375     (3,276)    4,084     4,296     4,068    
Net income (loss)   8,274     (6,355)    7,496     8,119     7,494    
Basic earnings per share   0.49     (0.37)    0.43     0.46     0.43    
Diluted earnings per share   0.49     (0.37)    0.42     0.45     0.42    
Net income (core) (1)   8,284     7,506     8,241     8,958     8,932    
Basic earnings per share (core) (1)   0.49     0.44     0.47     0.51     0.51    
Diluted earnings per share (core) (1)   0.49     0.44     0.46     0.50     0.50    
Cash dividends paid per share   0.20     0.20     0.20     0.19     0.19    
Profitability Indicators            
Return on average assets 1.12%  -0.86%  1.01%  1.12%  1.03%   
Return on average equity 9.22%  -7.00%  8.01%  8.61%  8.13%   
Return on tangible equity(1) 15.31%  -9.36%  13.25%  14.06%  13.30%   
Tax-equivalent net interest margin 3.87%  3.77%  3.65%  3.81%  3.79%   
Efficiency ratio(1) 61.75%  63.09%  60.97%  60.48%  60.45%   
Mortgage Banking Information            
Mortgage loans originated$  50,416  $  55,867  $  76,169  $  63,285  $  35,728    
Residential mortgage loans sold - servicing retained   25,965     24,063     30,515     28,204     24,569    
Residential mortgage loans sold - servicing released   2,397     7,150     10,579     9,257     2,644    
  Total residential mortgage loans sold$  28,362  $  31,213  $  41,094  $  37,461  $  27,213    
Residential mortgage loans serviced for others$  605,366  $  601,939  $  601,999  $  595,440  $  591,989    
Share Data            
Closing share price$  25.73  $  28.72  $  31.07  $  30.16  $  30.41    
Book value per common share$  21.48  $  21.40  $  21.94  $  21.32  $  20.87    
Tangible book value per common share$  13.87  $  13.86  $  14.38  $  13.97  $  13.66    
Price / book value 119.80%  134.19%  141.62%  141.48%  145.74%   
Price / tangible book value 185.47%  207.14%  216.01%  215.85%  222.66%   
Weighted average diluted shares outstanding 16,883,193   17,129,234   17,834,298   18,054,663   17,903,258    
Shares outstanding, end of period   16,801,801     17,071,523     17,166,323     17,786,293     17,777,628    
Wealth Management Information:            
Wealth assets under mgmt, administration, supervision and brokerage (2)$  9,281,743  $  8,364,805  $  8,218,276  $  8,536,024  $  7,816,441    
Fees for wealth management services$  8,832  $  8,995  $  9,194  $  9,600  $  9,105    
Capital Ratios            
Bryn Mawr Trust Company            
Tier I capital to risk weighted assets ("RWA") 10.69%  10.12%  11.96%  12.04%  12.12%   
Total (Tier II) capital to RWA 11.39%  10.78%  12.64%  12.71%  12.78%   
Tier I leverage ratio 9.15%  8.51%  9.75%  9.77%  9.52%   
Tangible equity ratio (1) 8.53%  7.74%  8.84%  8.54%  8.42%   
Common equity Tier I capital to RWA 10.69%  10.12%  11.96%  12.04%  12.12%   
             
Bryn Mawr Bank Corporation            
Tier I capital to RWA 10.22%  10.72%  11.56%  12.55%  12.79%   
Total (Tier II) capital to RWA 12.13%  12.61%  13.50%  13.21%  13.44%   
Tier I leverage ratio 8.76%  9.02%  9.44%  10.20%  10.05%   
Tangible equity ratio (1) 8.10%  8.17%  8.45%  8.88%  8.87%   
Common equity Tier I capital to RWA 10.22%  10.72%  11.54%  12.50%  12.77%   
             
Asset Quality Indicators            
             
Net loan and lease charge-offs ("NCO"s)$  422  $  1,855  $  224  $  187  $  859    
Nonperforming loans and leases ("NPL"s)$  9,636  $  10,244  $  12,315  $  8,996  $  9,130    
Other real estate owned ("OREO")   756     2,638     1,010     843     1,532    
Total nonperforming assets ("NPA"s)$   10,392   $   12,882   $   13,325   $   9,839   $   10,662     
             
Nonperforming loans and leases 30 or more days past due$  6,193  $  5,678  $  8,854  $  7,302  $  7,426    
Performing loans and leases 30 to 89 days past due   6,296     5,601     4,960     5,233     3,361    
Performing loans and leases 90 or more days past due   -     -     -     -     -    
Total delinquent loans and leases$   12,489   $   11,279   $   13,814   $   12,535   $   10,787     
             
Delinquent loans and leases to total loans and leases 0.52%  0.50%  0.62%  0.58%  0.51%   
Delinquent performing loans and leases to total loans and leases 0.26%  0.25%  0.22%  0.24%  0.16%   
NCOs / average loans and leases (annualized) 0.07%  0.33%  0.04%  0.04%  0.17%   
NPLs / total portfolio loans and leases 0.41%  0.45%  0.55%  0.42%  0.44%   
NPAs / total loans and leases and OREO 0.44%  0.56%  0.60%  0.45%  0.51%   
ALLL / NPLs 174.81%  154.79%  129.40%  166.29%  156.58%   
ALLL / portfolio loans 0.71%  0.70%  0.71%  0.69%  0.68%   
ALLL on originated loans and leases / Originated loans and leases (1) 0.83%  0.84%  0.88%  0.88%  0.90%   
(Total Allowance + Loan mark) / Total Gross portfolio loans and leases (1) 1.37%  1.44%  1.52%  1.60%  1.61%   
             
Troubled debt restructurings ("TDR"s) included in NPLs$  1,756  $  1,935  $  3,711  $  3,960  $  4,217    
TDRs in compliance with modified terms   4,893     4,880     4,062     4,078     4,145    
Total TDRs$   6,649   $   6,815   $   7,773   $   8,038   $   8,362     
             
(1)Non-GAAP measure - see Appendix for Non-GAAP to GAAP reconciliation            
(2)Brokerage assets represent assets held at a registered broker dealer under a clearing agreement.           
            

 

            
Bryn Mawr Bank Corporation           
Detailed Balance Sheets (unaudited)           
(dollars in thousands)           
 As of or For the Three Months Ended  
 March 31, 2016 December 31, 2015 September 30, 2015 June 30, 2015 March 31, 2015  
Assets           
Cash and due from banks$  15,594  $  18,452  $  17,161  $  20,258  $  17,269   
Interest-bearing deposits with banks   33,954     124,615     100,980     156,282     244,248   
  Cash and cash equivalents   49,548     143,067     118,141     176,540     261,517   
Investment securities, available for sale   365,819     348,966     341,421     349,496     334,746   
Investment securities, trading   3,642     3,950     3,451     4,029     4,035   
Loans held for sale   7,807     8,987     8,721     15,363     6,656   
Portfolio loans and leases, originated   2,015,683     1,883,869     1,804,834     1,692,027     1,571,375   
Portfolio loans and leases, acquired   363,158     385,119     423,930     461,236     517,156   
  Total portfolio loans and leases   2,378,841     2,268,988     2,228,764     2,153,263     2,088,531   
Less: Allowance for losses on originated loan and leases   (16,817)    (15,857)    (15,900)    (14,937)    (14,173)  
Less: Allowance for losses on acquired loan and leases   (28)    -     (35)    (22)    (123)  
  Total allowance for loan and lease losses   (16,845)    (15,857)    (15,935)    (14,959)    (14,296)  
    Net portfolio loans and leases   2,361,996     2,253,131     2,212,829     2,138,304     2,074,235   
Premises and equipment   44,712     45,339     44,370     43,164     42,888   
Accrued interest receivable   8,205     7,869     7,744     7,518     7,465   
Deferred income taxes   10,155     11,137     11,216     11,066     12,057   
Mortgage servicing rights   5,182     5,142     5,031     4,970     4,815   
Bank owned life insurance   38,616     38,371     38,157     32,941     32,772   
Federal Home Loan Bank ("FHLB") stock   12,142     12,942     11,742     11,542     11,541   
Goodwill   104,765     104,765     104,338     104,322     101,619   
Intangible assets   23,012     23,903     25,356     26,309     26,522   
Other investments   8,487     9,460     9,499     9,295     9,238   
Other assets   14,159     13,968     10,726     15,155     13,073   
       Total assets$  3,058,247  $  3,030,997  $  2,952,742  $  2,950,014  $  2,943,179   
                      
Liabilities                     
Deposits                     
  Noninterest-bearing$  643,492  $  626,684  $  605,607  $  636,390  $  582,495   
  Interest-bearing   1,700,550     1,626,041     1,634,237     1,624,257     1,658,869   
    Total deposits   2,344,042     2,252,725     2,239,844     2,260,647     2,241,364   
Short-term borrowings   37,010     94,167     24,264     26,406     38,372   
Long-term FHLB advances and other borrowings   249,832     254,863     254,893     244,923     250,088   
Subordinated notes   29,491     29,479     29,466     -     -   
Accrued interest payable   1,294     1,851     1,444     1,292     1,201   
Other liabilities   31,401     32,201     34,676     35,648     34,251   
     Total liabilities   2,693,070     2,665,286     2,584,587     2,568,916     2,565,276   
            
Shareholders' equity           
Common stock   20,949     20,931     20,854     20,848     20,750   
Paid-in capital in excess of par value   229,479     228,814     226,980     225,837     223,389   
Less: common stock held in treasury, at cost   (66,140)    (58,144)    (53,000)    (34,346)    (31,646)  
Accumulated other comprehensive income (loss), net of tax    1,502     (412)    (11,040)    (11,634)    (10,287)  
Retained earnings   179,387     174,522     184,361     180,393     175,697   
  Total shareholders equity   365,177     365,711     368,155     381,098     377,903   
    Total liabilities and shareholders' equity$  3,058,247  $  3,030,997  $  2,952,742  $  2,950,014  $  2,943,179   
            

 

            
Bryn Mawr Bank Corporation           
Supplemental Balance Sheet Information (unaudited)           
(dollars in thousands)           
 Portfolio Loans and Leases as of  
 March 31, 2016 December 31, 2015 September 30, 2015 June 30, 2015 March 31, 2015  
Commercial mortgages$  1,044,415  $  964,259  $  971,983  $  924,161  $  892,675   
Home equity loans and lines   205,896     209,473     212,258     211,982     209,037   
Residential mortgages   412,006     406,404     399,730     381,323     379,363   
Construction   119,193     90,421     82,820     88,122     81,408   
  Total real estate loans   1,781,510     1,670,557     1,666,791     1,605,588     1,562,483   
Commercial & Industrial   523,053     524,515     488,977     472,702     457,432   
Consumer   21,427     22,129     22,350     25,123     20,204   
Leases   52,851     51,787     50,646     49,850     48,412   
  Total non-real estate loans and leases   597,331     598,431     561,973     547,675     526,048   
  Total portfolio loans and leases$  2,378,841  $  2,268,988  $  2,228,764  $  2,153,263  $  2,088,531   
            
            
 Nonperforming Loans and Leases as of  
 March 31, 2016 December 31, 2015 September 30, 2015 June 30, 2015 March 31, 2015  
Commercial mortgages$  872  $  829  $  931  $  592  $  600   
Home equity loans and lines   1,953     2,027     1,661     1,605     923   
Residential mortgages   2,923     3,212     5,249     5,320     5,130   
Construction   12     34     34     139     201   
  Total nonperforming real estate loans   5,760     6,102     7,875     7,656     6,854   
Commercial & Industrial   3,822     4,133     4,337     1,283     2,218   
Consumer   -     -     2     -     9   
Leases   54     9     101     57     49   
  Total nonperforming non-real estate loans and leases   3,876     4,142     4,440     1,340     2,276   
    Total noperforming portfolio loans and leases$  9,636  $  10,244  $  12,315  $  8,996  $  9,130   
            
            
 Net Loan and Lease Charge-Offs (Recoveries) for the Three Months Ended  
 March 31, 2016 December 31, 2015 September 30, 2015 June 30, 2015 March 31, 2015  
Commercial mortgage$  107  $  (4) $  -  $  48  $  (21)  
Home equity loans and lines   71     561     (21)    11     125   
Residential   (35)    239     11     43     463   
Construction   -     (1)    (1)    (1)    (1)  
  Total net charge-offs (recoveries) of real estate loans   143     795     (11)    101     566   
Commercial & Industrial   25     902     38     (10)    255   
Consumer   20     55     26     35     32   
Leases   234     103     171     61     6   
  Total net charge-offs of non-real estate loans and leases    279     1,060     235     86     293   
    Total net charge-offs$  422  $  1,855  $  224  $  187  $  859   
            

 

            
Bryn Mawr Bank Corporation           
Supplemental Balance Sheet Information (unaudited)           
(dollars in thousands)           
 Investment Securities Available for Sale, at Fair Value  
 March 31, 2016 December 31, 2015 September 30, 2015 June 30, 2015 March 31, 2015  
U.S. Treasury securities $  102  $  101  $  102  $  101  $  102   
Obligations of the U.S. Government and agencies    96,080     101,495     91,639     93,125     89,669   
State & political subdivisions - tax-free   39,502     41,442     43,388     40,967     32,261   
State & political subdivisions - taxable   1,093     524     742     351     -   
Mortgage-backed securities   183,127     158,689     155,509     161,283     162,370   
Collateralized mortgage obligations   29,106     29,799     32,953     36,094     32,759   
Other debt securities   1,700     1,691     1,896     1,894     1,900   
Bond mutual funds   11,725     11,810     11,798     11,920     11,883   
Other investments   3,384     3,415     3,394     3,761     3,802   
  Total$  365,819  $  348,966  $  341,421  $  349,496  $  334,746   
            
            
 Unrealized Gain (Loss) on Investment Securities Available for Sale  
 March 31, 2016 December 31, 2015 September 30, 2015 June 30, 2015 March 31, 2015  
U.S. Treasury securities $  1  $  -  $  1  $  -  $  -   
Obligations of the U.S. Government and agencies    984     153     712     182     591   
State & political subdivisions - tax-free   173     75     153     49     133   
State & political subdivisions - taxable   18     (1)    2     1     -   
Mortgage-backed securities   3,026     1,267     2,591     1,542     2,898   
Collateralized mortgage obligations   330     43     339     223     347   
Other debt securities   -     (9)    (4)    (6)    -   
Bond mutual funds   (231)    (146)    (158)    (36)    (73)  
Other investments   (155)    (192)    (193)    111     128   
  Total$  4,146  $  1,190  $  3,443  $  2,066  $  4,024   
            
            
 Deposits  
 March 31, 2016 December 31, 2015 September 30, 2015 June 30, 2015 March 31, 2015  
Interest-bearing deposits:           
  Interest-bearing checking$  335,240  $  338,861  $  330,683  $  328,606  $  349,582   
  Money market   773,637     749,726     748,983     699,264     717,441   
  Savings   190,477     187,299     192,995     189,120     184,819   
  Wholesale non-maturity deposits   62,454     67,717     65,636     65,365     69,555   
  Wholesale time deposits   131,145     53,185     57,671     67,894     73,476   
  Retail time deposits    207,597     229,253     238,269     274,008     263,996   
    Total interest-bearing deposits   1,700,550     1,626,041     1,634,237     1,624,257     1,658,869   
  Noninterest-bearing deposits   643,492     626,684     605,607     636,390     582,495   
    Total deposits$  2,344,042  $  2,252,725  $  2,239,844  $  2,260,647  $  2,241,364   
            

 

            
Bryn Mawr Bank Corporation           
Detailed Income Statements (unaudited)           
(dollars in thousands, except per share data)           
 As of or For the Three Months Ended  
 March 31, 2016 December 31, 2015 September 30, 2015 June 30, 2015 March 31, 2015  
Interest income:           
Interest and fees on loans and leases$  26,696  $  26,080  $  25,620  $  25,568  $  25,164   
Interest on cash and cash equivalents   46     63     107     124     115   
Interest on investment securities:   1,527     1,623     1,302     1,301     1,475   
  Total interest income   28,269     27,766     27,029     26,993     26,754   
Interest expense:           
Interest on deposits   1,076     1,046     1,076     1,062     1,028   
Interest on short-term borrowings   17     9     8     10     21   
Interest on FHLB advances and other borrowings   908     912     881     851     910   
Interest on subordinated notes   366     370     231     -     -   
Total interest expense   2,367     2,337     2,196     1,923     1,959   
  Net interest income   25,902     25,429     24,833     25,070     24,795   
Provision for loan and lease losses (the "Provision")   1,410     1,777     1,200     850     569   
  Net interest income after Provision   24,492     23,652     23,633     24,220     24,226   
Noninterest income:           
Fees for wealth management services    8,832     8,995     9,194     9,600     9,105   
Insurance revenue   1,276     842     1,065     817     1,021   
Service charges on deposits   702     742     721     752     712   
Loan servicing and other fees   492     502     397     597     591   
Net gain on sale of loans   760     751     685     778     808   
Net (loss) gain on sale of investment securities available for sale    (15)    58     60     3     810   
Net (loss) gain on sale of other real estate owned   (76)    33     -     75     15   
Dividends on FHLB and FRB stocks   214     330     138     299     615   
Other operating income   1,023     1,415     1,090     1,256     1,088   
  Total noninterest income   13,208     13,668     13,350     14,177     14,765   
Noninterest expense:           
Salaries and wages    11,738     11,700     10,941     11,064     10,870   
Employee benefits    2,485     2,268     2,590     2,618     2,729   
Loss on pension termination   -     17,377     -     -     -   
Occupancy and bank premises   2,488     2,474     2,557     2,808     2,466   
Branch lease termination expense   -     929     -     -     -   
Furniture, fixtures and equipment   1,919     2,129     1,712     1,488     1,512   
Advertising   284     656     410     479     557   
Amortization of intangible assets   891     937     953     955     982   
Impairment of intangible assets   -     387     -     -     -   
Due diligence, merger-related and merger integration expenses   -     1,860     1,015     1,294     2,501   
Professional fees   813     1,010     843     827     673   
Pennsylvania bank shares tax   638     (46)    433     433     433   
Information technology   1,048     874     1,053     814     702   
Other operating expenses    2,747     4,396     2,896     3,202     4,004   
  Total noninterest expense   25,051     46,951     25,403     25,982     27,429   
Income (loss) before income taxes   12,649     (9,631)    11,580     12,415     11,562   
Income tax expense (benefit)   4,375     (3,276)    4,084     4,296     4,068   
           Net income (loss)$  8,274  $  (6,355) $  7,496  $  8,119  $  7,494   
Per share data:           
Weighted average shares outstanding   16,848,202     17,129,234     17,572,421     17,713,794     17,545,802   
Dilutive common shares   34,991     -     261,877     340,869     357,456   
Adjusted weighted average diluted shares    16,883,193     17,129,234     17,834,298     18,054,663     17,903,258   
Basic earnings (loss) per common share$  0.49  $  (0.37) $  0.43  $  0.46  $  0.43   
Diluted earnings (loss) per common share$  0.49  $  (0.37) $  0.42  $  0.45  $  0.42   
Dividend declared per share$  0.20  $  0.20  $  0.20  $  0.19  $  0.19   
Effective tax rate 34.59%  34.02%  35.27%  34.60%  35.18%  
            

 

                  
Bryn Mawr Bank Corporation                 
Tax-Equivalent Net Interest Margin (unaudited)               
(dollars in thousands, except per share data)                
  For The Three Months Ended 
  March 31, 2016December 31, 2015September 30, 2015June 30, 2015March 31, 2015 
(dollars in thousands) Average BalanceInterest Income/ ExpenseAverage Rates Earned/ PaidAverage BalanceInterest Income/ ExpenseAverage Rates Earned/ PaidAverage BalanceInterest Income/ ExpenseAverage Rates Earned/ PaidAverage BalanceInterest Income/ ExpenseAverage Rates Earned/ PaidAverage BalanceInterest Income/ ExpenseAverage Rates Earned/ Paid 
                  
Assets:                 
Interest-bearing deposits with other banks $  39,050 $  46   0.47%$  90,832 $  63   0.28%$  165,723 $  107   0.26%$  182,099 $  124  0.27%$  206,694 $  115   0.23% 
Investment securities - available for sale:                 
Taxable  316,353    1,397   1.78% 307,524  1,432   1.85% 310,582  1,172   1.50% 310,011  1,184  1.53% 335,208  1,336   1.62% 
Tax-exempt  40,658    191   1.89% 43,144  195   1.79% 41,424  186   1.78% 37,035  157  1.70% 35,085  203   2.35% 
Total investment   securities - available for   sale  357,011  1,588   1.79% 350,668  1,627   1.84% 352,006  1,358   1.53% 347,046  1,341  1.55% 370,293  1,539   1.69% 
                  
Investment securities  - trading  3,946  2   0.20% 3,571  60   6.67% 4,022  5   0.49% 4,034  11  1.09% 3,897  4   0.42% 
                  
Loans and leases *  2,308,584  26,778   4.67% 2,247,720  26,158   4.62% 2,191,652  25,698   4.65% 2,118,106  25,623  4.85% 2,082,882  25,226   4.91% 
                  
Total interest-earning assets  2,708,591  28,414   4.22% 2,692,791  27,908   4.11% 2,713,403  27,168   3.97% 2,651,285  27,099  4.10% 2,663,766  26,884   4.09% 
                  
Cash and due from banks    16,501      18,005      17,160      16,222      19,092    
Less: allowance for loan and lease losses  (16,239)   (16,106)   (15,066)   (14,346)   (14,866)   
Other assets  264,295    264,321    265,811    257,540    250,164    
                  
Total assets $  2,973,148   $  2,959,011   $  2,981,308   $  2,910,701   $  2,918,156    
                  
Liabilities:                 
                  
Interest-bearing deposits:                 
Savings, NOW and market rate deposits $  1,279,630 $  569   0.18%$  1,260,575 $  565   0.18%$  1,260,529 $  584   0.18%$  1,224,544 $  575  0.19%$  1,252,410 $  594   0.19% 
Wholesale deposits  137,201  233   0.68% 119,394  186   0.62% 133,277  203   0.60% 130,497  195  0.60% 140,120  188   0.54% 
Retail time deposits  216,820  274   0.51% 231,605  295   0.51% 251,170  289   0.46% 273,718  292  0.43% 267,800  246   0.37% 
Total interest-bearing deposits  1,633,651  1,076   0.26% 1,611,574  1,046   0.26% 1,644,976  1,076   0.26% 1,628,759  1,062  0.26% 1,660,330  1,028   0.25% 
                  
Borrowings:                 
Short-term borrowings  34,158  17   0.20% 26,092  9   0.14% 28,166  8   0.11% 34,980  10  0.11% 55,344  21   0.15% 
Long-term FHLB advances and other borrowings  250,015  908   1.46% 254,880  912   1.42% 248,606  881   1.41% 249,678  851  1.37% 266,205  910   1.39% 
Subordinated notes  29,482  366   4.99%   29,471    370   4.98%   18,190    231   5.04%   -    -  0.00%   -    -   0.00% 
Total borrowings  313,655  1,291   1.66% 310,443  1,291   1.65% 294,962  1,120   1.51% 284,658  861  1.21% 321,549  931   1.17% 
                  
Total interest-bearing liabilities  1,947,306  2,367   0.49% 1,922,017  2,337   0.48% 1,939,938  2,196   0.45% 1,913,417  1,923  0.40% 1,981,879  1,959   0.40% 
                  
Noninterest-bearing deposits  631,047    634,969    625,547    580,240    534,403    
Other liabilities  33,923    36,665    39,219    37,890    30,935    
Total noninterest-bearing liabilities  664,970    671,634    664,766    618,130    565,338    
                  
Total liabilities  2,612,276    2,593,651    2,604,704    2,531,547    2,547,217    
                  
Shareholders' equity  360,872    365,360    376,604    379,154    370,939    
                  
Total liabilities and shareholders' equity $  2,973,148   $  2,959,011   $  2,981,308   $  2,910,701   $  2,918,156    
                  
Interest income to earning assets    4.22%   4.11%   3.97%   4.10%   4.09% 
                  
Net interest spread    3.73%   3.63%   3.52%   3.70%   3.69% 
Effect of noninterest-bearing sources      0.14%     0.14%     0.13%     0.11%     0.10% 
                     
Tax-equivalent net interest margin  $  26,047   3.87% $  25,571   3.77% $  24,972   3.65% $  25,176  3.81% $  24,925   3.79% 
                  
Tax-equivalent adjustment  $  145   0.02% $  142   0.02% $  139   0.02% $  106  0.02% $  130   0.02% 
                  
Supplemental Information Regarding Accretion of Fair Value Marks               
    Interest Income (Expense) Effect Effect on Yield or Rate  Interest Income (Expense) Effect Effect on Yield or Rate  Interest Income (Expense) Effect Effect on Yield or Rate  Interest Income (Expense) Effect Effect on Yield or Rate  Interest Income (Expense) Effect Effect on Yield or Rate 
Loans and leases  $  953   0.17% $  707   0.12% $  763   0.14% $  1,246  0.24% $  1,127   0.22% 
Retail time deposits     (110)  -0.20%    (123)  -0.21%    (188)  -0.30%    (205) -0.30%    (245)  -0.37% 
Short-term borrowings     (12)  -0.14%    (35)  -0.53%    (35)  -0.49%    (35) -0.40%    (35)  -0.26% 
Long-term FHLB advances and other borrowings     (30)  -0.05%    (30)  -0.05%    (30)  -0.05%    (30) -0.05%    (35)  -0.05% 
Net interest income from fair value marks  $  1,105    $  895    $  1,016    $  1,516   $  1,442    
Purchase accounting effect on tax-equivalent margin      0.16%      0.13%      0.15%     0.23%      0.22% 
* 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         
Appendix - Non-GAAP to GAAP Reconciliations and Calculation of Non-GAAP Performance Measures (unaudited)      
(dollars in thousands, except per share data)         
          
Statement on Non-GAAP Measures: The Corporation believes the presentation of the following non-GAAP financial measures provides useful supplemental information that is essential to an investor's proper understanding of the results of operations and financial condition of the Corporation. Management uses non-GAAP financial measures in its analysis of the Corporation's performance. These non-GAAP measures should not be viewed as substitutes for the financial measures determined in accordance with GAAP, nor are they necessarily comparable to  non-GAAP performance measures that may be presented by other companies.
          
 As of or For the Three Months Ended
 March 31, 2016 December 31, 2015 September 30, 2015 June 30, 2015 March 31, 2015
Reconciliation of Net Income to Net Income (core):         
Net income (loss) (a GAAP measure)$  8,274  $  (6,355) $  7,496  $  8,119  $  7,494 
Less: Tax-effected non-core noninterest income:         
  Loss (gain) on sale of investment securities available for sale   10     (38)    (39)    (2)    (527)
Add: Tax-effected non-core noninterest expense items:         
  Loss on pension termination   -     11,295     -     -     - 
  Severance expense (Salaries and wages)   -     142     124     -     - 
  Branch lease termination expense   -     604     -     -     - 
  Debt and swap prepayment penalty (Other operating expenses)   -     397     -     -     339 
  Impairment of intangible assets   -     252     -     -     - 
  Due diligence, merger-related and merger integration  expenses   -     1,209     660     841     1,626 
Net income (core) (a non-GAAP measure)$   8,284   $   7,506   $   8,241   $   8,958   $   8,932  
          
Calculation of Basic and Diluted Earnings per Common Share (core):        
Weighted average common shares outstanding   16,848,202     17,129,234     17,572,421     17,713,794     17,545,802 
Dilutive common shares   63,617     112,783     261,877     340,869     357,456 
Adjusted weighted average diluted shares    16,911,819     17,242,017     17,834,298     18,054,663     17,903,258 
Basic earnings per common share (core) (a non-GAAP measure)$  0.49  $  0.44  $  0.47  $  0.51  $  0.51 
Diluted earnings per common share (core) (a non-GAAP measure)$  0.49  $  0.44  $  0.46  $  0.50  $  0.50 
          
Calculation of Return on Average Tangible Equity:         
Net income (loss)$  8,274  $  (6,355) $  7,496  $  8,119  $  7,494 
Add: Tax-effected amortization and impairment of intangible assets   579     861     619     621     638 
Net tangible income (numerator)$  8,853  $  (5,494) $  8,115  $  8,740  $  8,132 
          
Average shareholders' equity$  360,872  $  365,360  $  376,604  $  379,154  $  370,939 
Less: Average goodwill and intangible assets   (128,296)    (129,292)    (130,241)    (129,116)    (125,060)
Net average tangible equity (denominator)$  232,576  $  236,068  $  246,363  $  250,038  $  245,879 
          
Return on tangible equity (a non-GAAP measure) 15.31%  -9.23%  13.07%  14.02%  13.41%
          
Calculation of Tangible Equity Ratio:         
Total shareholders' equity$  365,177  $  365,711  $  368,155  $  381,098  $  377,903 
Less: Goodwill and intangible assets   (127,777)    (128,668)    (129,694)    (130,631)    (128,141)
Net tangible equity (numerator)$  237,400  $  237,043  $  238,461  $  250,467  $  249,762 
          
Total assets$  3,058,247  $  3,030,997  $  2,952,742  $  2,950,014  $  2,943,179 
Less: Goodwill and intangible assets   (127,777)    (128,668)    (129,694)    (130,631)    (128,141)
Tangible assets (denominator)$  2,930,470  $  2,902,329  $  2,823,048  $  2,819,383  $  2,815,038 
          
Tangible equity ratio 8.10%  8.17%  8.45%  8.88%  8.87%
          
Calculation of Efficiency Ratio:         
Noninterest expense$  25,051  $  46,951  $  25,403  $  25,982  $  27,429 
Less: certain noninterest expense items*:         
  Loss on pension termination   -     (17,377)    -     -     - 
  Severance expense (Salaries and wages)   -     (218)    (191)    -     - 
  Branch lease termination expense   -     (929)    -     -     - 
  Debt and swap prepayment penalty (Other operating expenses)   -     (611)    -     -     (522)
  Amortization of intangibles   (891)    (937)    (953)    (955)    (982)
  Impairment of intangible assets   -     (388)    -     -     - 
  Due diligence, merger-related and merger integration  expenses   -     (1,860)    (1,015)    (1,294)    (2,501)
Noninterest expense (adjusted) (numerator)$  24,160  $  24,631  $  23,244  $  23,733  $  23,424 
          
Noninterest income$  13,208  $  13,668  $  13,350  $  14,177  $  14,765 
Less: non-core noninterest income items:         
  Loss (gain) on sale of investment securities available for sale   15     (58)    (60)    (3)    (811)
Noninterest income (core)$  13,223  $  13,610  $  13,290  $  14,174  $  13,954 
Net interest income   25,902     25,429     24,833     25,070     24,795 
Noninterest income (core) and net interest income (denominator)$  39,125  $  39,039  $  38,123  $  39,244  $  38,749 
          
Efficiency ratio 61.75%  63.09%  60.97%  60.48%  60.45%
* In calculating the Corporation's efficiency ratio, which is used by Management to identify the cost of generating each dollar of core revenue, certain non-core income and expense items as well as the amortization of intangible assets, are excluded.
          
Supplemental Loan and Allowance Information Used to Calculate Non-GAAP Measures        
          
Total Allowance$  16,817  $  15,857  $  15,935  $  14,959  $  14,296 
less: Allowance on acquired loans   28     -     35     22     125 
Allowance on originated loans and leases$  16,789  $  15,857  $  15,900  $  14,937  $  14,171 
          
Total Allowance$  16,789  $  15,857  $  15,935  $  14,959  $  14,296 
Loan mark on acquired loans   15,930     17,108     18,179     19,816     19,708 
Total Allowance + Loan mark$  32,719  $  32,965  $  34,114  $  34,775  $  34,004 
          
Total Portfolio loans and leases$  2,378,841  $  2,268,988  $  2,228,764  $  2,153,263  $  2,088,532 
less: Originated loans and leases   2,015,683     1,883,869     1,804,835     1,692,041     1,571,377 
Net acquired loans$  363,158  $  385,119  $  423,929  $  461,222  $  517,155 
add: Loan mark on acquired loans   15,930     17,108     18,179     19,816     19,708 
Gross acquired loans (excludes loan mark)$  379,088  $  402,227  $  442,108  $  481,038  $  536,863 
Originated loans and leases   2,015,683     1,883,869     1,804,835     1,692,041     1,571,377 
Total Gross portfolio loans and leases$  2,394,771  $  2,286,096  $  2,246,943  $  2,173,079  $  2,108,240 
                    
                    
FOR MORE INFORMATION CONTACT: Frank Leto, President, CEO 610-581-4730 Mike Harrington, CFO 610-526-2466

Primary Logo

View Comments and Join the Discussion!