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Bryn Mawr Bank Corporation Reports Fourth Quarter Results, Incurs $17.4 Million Pension Termination Charge, Records Organic Loan Growth of 9.2% for 2015 and Declares Dividend of $0.20

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BRYN MAWR, Pa., Jan. 21, 2016 (GLOBE NEWSWIRE) -- Bryn Mawr Bank Corporation (NASDAQ: BMTC) (the "Corporation"), parent of The Bryn Mawr Trust Company (the "Bank"), today reported a net loss of $6.4 million and diluted earnings per share of ($0.37) for the three months ended December 31, 2015, as compared to net income of $7.0 million and diluted earnings per share of $0.51 for the same period in 2014.

On a non-GAAP basis, core net income, which excludes net gain on sale of available for sale investment securities, the effects of the previously announced pension plan termination at December 31, 2015, severance expense, branch lease termination penalties, debt prepayment and swap termination penalties, impairment of favorable lease intangible asset, and due diligence, merger-related and merger integration expenses, was $7.5 million, or $0.44 per diluted share, for the fourth quarter of 2015 as compared to $7.4 million, or $0.53 per diluted share, for the same period in 2014. Management believes these non-GAAP measures are important in evaluating the Corporation's performance on a more comparative basis between periods. A reconciliation of the non-GAAP to GAAP performance measures is included in the schedules accompanying this earnings release.

"2015 was truly a transitional year for the Corporation," commented Frank Leto, President and Chief Executive Officer, continuing, "With our acquisition of Continental Bank, the successes of several of our strategic initiatives, numerous infrastructure and systems improvements, and the bank-wide management and staffing reorganization which was effectuated during the year, we are poised to face 2016 with a more efficient and effective organization." Mr. Leto continued, "Our decision to terminate the corporate pension plan will eliminate the earnings volatility associated with this defined-benefit program. Our Wealth Management division continues to grow and diversify, increasing assets under management by 8.6% during 2015. While a portion of this growth is subject to fixed fees, the remainder is well positioned to benefit from improvements in the equity markets. In addition, the steady loan growth we experienced during the quarter is encouraging, as well as the consistent performance of our non-interest revenue sources, which contribute significantly to our bottom line."

On January 21, 2016, the Board of Directors of the Corporation declared a quarterly dividend of $0.20 per share, payable March 1, 2016 to shareholders of record as of February 2, 2016.

SIGNIFICANT ITEMS OF NOTE

Results of Operations – 4th Quarter 2015 Compared to 4th Quarter 2014

  • A net loss of $6.7 million for the three months ended December 31, 2015 was driven by the $17.4 million pre-tax loss on the termination of the pension plan. Net income for the same period in 2014 was $7.0 million.
     
  • Net interest income for the three months ended December 31, 2015 was $25.4 million, an increase of $5.9 million, or 30.5%, from $19.5 million for the same period in 2014. The increase in net interest income between the periods was related to the interest income generated by the $424.2 million of loans acquired in the January 1, 2015 merger with Continental Bank Holdings, Inc. ("CBHI" and the "Merger") as well as organic loan growth that occurred during the year. Average loans for the three months ended December 31, 2015 increased by $592.5 million from the same period in 2014. The increase in interest income from loan growth was partially offset by an increase in interest expense on interest-bearing deposits as well as the additional interest expense associated with the $30 million of subordinated notes issued in the third quarter of 2015. Average interest-bearing deposits for the three months ended December 31, 2015 increased by $405.2 million as compared to the same period in 2014, largely related to the deposits acquired in the Merger.
     
  • The tax-equivalent net interest margin of 3.77% for the three months ended December 31, 2015 was a 7 basis point decrease from 3.84% for the same period in 2014. The decrease was largely the result of the 17 basis point decline in tax-equivalent yield on loans, accompanied by a $592.5 million increase in average loan balances. The decline in yield on loans was primarily related to the lower yields earned on the loans originated during the low-interest rate climate throughout the year. In addition, average interest-bearing deposits, which increased by $405.2 million, included a 1 basis point increase in the tax-equivalent rate paid. The contribution of fair value mark accretion to the tax equivalent net interest margin accounted for 13 basis points of the margin for the fourth quarter of 2015 as compared to 11 basis points for the same period in 2014.
     
  • Non-interest income for the three months ended December 31, 2015 increased $785 thousand as compared to the same period in 2014. Contributing to this increase was a $774 thousand increase in other operating income which included a $130 thousand increase in bank owned life insurance ("BOLI") income, a $130 thousand increase in value of trading securities and a $319 thousand increase in income related to the full payoff of a purchased credit-impaired loan acquired in the Merger. In addition to the $12.1 million of BOLI acquired in the Merger, the Corporation also purchased $5.0 million of BOLI in the third quarter of 2015. Supplementing the increase in other operating income, a $280 thousand increase in net gain on sale of loans and a $119 thousand increase in dividends on Federal Reserve Bank ("FRB") and Federal Home Loan Bank ("FHLB") stock, partially offset by a $268 thousand decrease in fees for wealth management services, contributed to the increase in non-interest income. Although wealth assets increased from December 31, 2014 by $664.9 million, the composition of the portfolio has shifted to lower yielding products. 
     
  • Non-interest expense for the three months ended December 31, 2015 increased $25.0 million, to $47.0 million, as compared to $21.9 million for the same period in 2014. The termination on December 31, 2015, of the corporate pension plan resulted in a pre-tax loss of $17.4 million, as tax-effected losses previously recorded in other comprehensive income were recognized through the income statement. In addition, the closure of the former headquarters of Continental Bank resulted in lease termination penalties totaling $929 thousand, and required a $387 thousand impairment of a favorable lease intangible asset which had been recorded in connection with the headquarters location. Due diligence, merger-related and merger integration expenses increased by $903 thousand for the fourth quarter of 2015 as compared to the same period in 2014, as the conversion of the Continental Bank core system was completed in October 2015.  Due diligence, merger-related and merger integration expenses include consultant costs, investment banker fees, contract breakage fees, retention bonuses for both retained and severed employees, as well as salary and wages for redundant staffing involved in the integration of the two institutions. Increases of $2.3 million, $368 thousand and $666 thousand, in salary and wages, employee benefits and occupancy expenses, respectively, much of which was related to the addition of the Continental Bank staff and offices, also contributed to the year-over-year increase. In addition to the salary and wage increases caused by staffing increases, the Corporation incurred severance costs of $218 thousand in connection with a management and staffing reorganization. Lastly, during the fourth quarter, the Corporation elected to unwind a $15 million forward interest rate swap which had been entered into in 2012 and was scheduled to become effective on November 30, 2015. The decision to unwind the swap, which was originally entered into in order to hedge an adjustable rate FHLB borrowing, was related to changes in the balance sheet over the interim period and the interest rate risk profile of the Corporation. The breakage fee to exit the swap was $611 thousand.
     
  • Nonperforming loans and leases totaled $9.8 million as of December 31, 2015, representing 0.43% of total portfolio loans and leases, as compared to $10.1 million, or 0.61% of total portfolio loans and leases as of December 31, 2014. For the three months ended December 31, 2015, the Corporation recorded net loan and lease charge-offs of $1.9 million, as compared to $697 thousand for the same period in 2014. The provision for loan and lease losses (the "Provision") for the three months ended December 31, 2015 was $1.8 million as compared to a release from the allowance for loan and lease losses (the "Allowance") of $316 thousand for the same period in 2014. The increase in Provision for the fourth quarter of 2015 was largely related to the level of charge-offs recorded during the quarter. Several of these charge-offs resulted from the receipt of new appraisals on certain non-performing loans deemed to be collateral-dependent, as well as the determination that certain loans previously expected to improve were not improving to the level Management had expected and therefore required partial write-downs.

Results of Operations – 4th Quarter 2015 Compared to 3rd Quarter 2015

  • A net loss of $6.7 million for the three months ended December 31, 2015 was recorded, as compared to net income of $7.5 million for the three months ended September 30, 2015, a decrease of $14.2 million. As discussed previously, the loss was driven by the pre-tax loss of $17.4 million dollars on the pension plan termination.

  • Net interest income for the three months ended December 31, 2015 was $25.4 million, an increase of $596 thousand from $24.8 million for the three months ended September 30, 2015. The increase in net interest income between the periods was related to a $460 thousand increase in interest on loans and a $321 thousand increase in interest on available for sale investment securities. Partially offsetting these increases was a $139 thousand increase in interest expense on subordinated notes, related to the $30 million of 4.75% subordinated notes issued in August 2015. The increase in interest earned on loans, whose average balance increased by $56.1 million from the third quarter of 2015 to the fourth quarter of 2015, was the result of strong loan growth in the third and fourth quarters of 2015. Portfolio loans increased by 5.4% from June 30, 2015 to December 31, 2015.
     
  • The tax-equivalent net interest margin of 3.77% for the three months ended December 31, 2015 increased 12 basis points from 3.65% in the third quarter of 2015. Average loans for the fourth quarter of 2015 increased by $56.1 million, from the third quarter of 2015, with an average tax-equivalent yield of 4.62%. In addition, during the fourth quarter of 2015, the tax-equivalent yield earned on available for sale investment securities increased by 37 basis points. A portion of the increase was related to an available for sale mortgage-backed security which prepaid and resulted in a $112 thousand prepayment premium. The contribution of fair value mark accretion to the tax equivalent net interest margin accounted for 13 basis points of the margin for the fourth quarter of 2015 as compared to 15 basis points for the third quarter of 2015.
     
  • Non-interest income for the three months ended December 31, 2015 increased $318 thousand from the third quarter of 2015. The increase was related to a $325 thousand increase in other operating income, a $192 thousand increase in dividends on FRB and FHLB stocks, a $105 thousand increase in loan servicing fees and a $66 thousand increase in gain on loan sales. The $325 thousand increase in other operating income was primarily related to $319 thousand of income recorded in connection with the full payoff of a purchased credit-impaired loan acquired in the Merger. Partially offsetting these increases were decreases of $199 thousand and $223 thousand in wealth management fees and insurance revenues. Wealth assets, which increased $146.5 million from September 30, 2015 to December 31, 2015, experienced a significant portion of their growth toward the end of the fourth quarter and therefore the revenue effect was not realized during the quarter. The decrease in insurance income is related to the timing of policy renewals throughout the year.
     
  • Non-interest expense for the three months ended December 31, 2015 increased $21.5 million, to $47.0 million, as compared to $25.4 million for the third quarter of 2015. The increase was largely the result the one-time loss recorded on the pension plan termination, as well as an increase in severance expense, a lease termination fee, swap breakage penalty, the impairment of a favorable lease intangible asset, and an increase in due diligence, merger-related and merger integration expenses, all of which are discussed in the year-over-year comparison above.
     
  • For the three months ended December 31, 2015, the Corporation recorded net loan and lease charge-offs of $1.9 million, as compared to $224 thousand for the third quarter of 2015. The Provision for the three months ended December 31, 2015 was $1.8 million, as compared to $1.2 million for the third quarter of 2015.

Financial Condition – December 31, 2015 Compared to December 31, 2014

  • Total portfolio loans and leases of $2.27 billion as of December 31, 2015 increased by $616.7 million from December 31, 2014. In addition to the $424.2 million of portfolio loans acquired in the Merger, strong organic loan growth of a net $192.5 million occurred during the twelve months ended December 31, 2015.
     
  • The Allowance, as of December 31, 2015, was $15.9 million, or 0.70% of portfolio loans as compared to $14.6 million, or 0.88% of portfolio loans and leases, as of December 31, 2014. The decrease in Allowance as a percentage of portfolio loans and leases was primarily the result of the increase in the balance of portfolio loans from the Merger. Loans acquired in the Merger were marked to their fair value at acquisition, and, as such, no additional Allowance was recorded for the acquired loan portfolio, in accordance with GAAP. In order to take this into account when evaluating the adequacy of the Allowance, in addition to other factors, management considers two non-GAAP measures: the Allowance as a percentage of originated loans and leases, which was 0.84% as of December 31, 2015 as compared to 0.94% as of December 31, 2014, and the Allowance plus the remaining loan mark, as a percentage of gross loans, which was 1.44% as of December 31, 2015, as compared to 1.27% as of December 31, 2014. The 10 basis point decrease in Allowance as a percentage of originated loans for the twelve months ended December 31, 2015 is a reflection of the overall improvement of the qualitative and quantitative factors affecting the estimate of incurred losses present in the loan and lease portfolio as of December 31, 2015.
     
  • Available for sale investment securities as of December 31, 2015 were $349.0 million, an increase of $119.4 million from December 31, 2014. In connection with the Merger, the Corporation acquired $181.8 million of available for sale investment securities. During the first quarter of 2015, the Corporation sold $63.2 million of these acquired available for sale investment securities in order to shorten the overall duration of the investment portfolio. Proceeds from the sale of available for sale investment securities along with excess cash were used to pay down $94.5 million of short-term FHLB advances assumed from CBHI, which matured shortly after the Merger was completed, as well as to prepay $19.5 million of long-term FHLB advances which had also been assumed in the Merger.
     
  • Total assets as of December 31, 2015 were $3.03 billion, an increase of $784.5 million from December 31, 2014. The Merger accounted for an initial increase in total assets of $742.6 million. Excluding the assets initially acquired in the Merger, portfolio loans and leases increased by $192.5 million, available for sale investment securities decreased by $62.4 million, and FHLB stock decreased by $3.6 million.
     
  • Wealth assets under management, administration, supervision and brokerage totaled $8.36 billion as of December 31, 2015, an increase of $664.9 million from December 31, 2014. The increase in wealth assets was primarily related to the success of strategic initiatives within the division, as well as the synergies which have developed between the Commercial Lending group and the Wealth division.
     
  • Deposits of $2.25 billion as of December 31, 2015 increased $564.7 million from December 31, 2014. The Merger accounted for an initial increase of $481.7 million of deposits, which included $93.9 million of non-interest-bearing deposits. As of December 31, 2015, non-interest-bearing deposits comprised 27.8% of total deposits as compared to 26.5% as of December 31, 2014.
     
  • The capital ratios for the Bank and the Corporation, as of December 31, 2015, as shown in the attached tables, indicate levels well above the regulatory minimum to be considered "well capitalized." The Bank's and the Corporation's capital ratios have decreased from the levels present at December 31, 2014, largely as a result of the pension termination, whose previously unrealized loss had been excluded from the capital ratio calculations, as well as the effect of share repurchases during the third and fourth quarters of 2015. In addition, during the fourth quarter of 2015, for purposes of improving the liquidity of the Corporation, the Bank issued a $30 million dividend to the Corporation, further reducing the capital ratios at the Bank level. These decreases in capital were partially offset at both the Bank and Corporation levels as a result of the shares issued in the Merger.

EARNINGS CONFERENCE CALL
The Corporation will hold an earnings conference call at 8:30 a.m. Eastern Time on Friday, January 22, 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 February 5, 2016.  The recorded replay may be accessed by dialing (toll-free) 1-877-344-7529 (international (toll) 1-412-317-0088) and the conference number is 10077462.

The conference call will be simultaneously broadcast live over the Internet through a webcast on the investor relations portion of the Bryn Mawr Bank Corporation's website. To access the call, please visit the website at http://services.choruscall.com/links/bmtc160122.  An online archive of the webcast will be available within one hour of the conclusion of the call.  The Corporation has also recently expanded its Investor Relations website to include added resources and information for shareholders and interested investors.  Interested parties are encouraged to utilize the expanded resources of the site for more information on Bryn Mawr Bank Corporation.

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

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

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

 
Bryn Mawr Bank Corporation
Consolidated Statements of Income - (unaudited)
(dollars in thousands, except per share data)
       
           
  For The Three Months Ended
  December 31, September 30, June 30, March 31, December 31,
   2015   2015   2015   2015   2014 
           
Interest and fees on loans and leases $26,080  $25,620  $25,568  $25,164  $19,913 
Interest on cash and cash equivalents  63   107   124   115   66 
Interest on investment securities:          
Taxable  1,402   1,135   1,161   1,320   891 
Non-taxable  131   125   106   135   95 
Dividends  90   42   34   20   90 
Total interest income  27,766   27,029   26,993   26,754   21,055 
           
Savings, NOW and market rate deposits  565   584   575   594   422 
Wholesale deposits  186   203   195   188   190 
Time deposits  295   289   292   246   143 
Interest on deposits  1,046   1,076   1,062   1,028   755 
Interest on short-term borrowings  9   8   10   21   4 
Interest on FHLB advances and other borrowings  912   881   851   910   809 
Interest on subordinated notes  370   231   -   -   - 
Total interest expense  2,337   2,196   1,923   1,959   1,568 
           
Net interest income  25,429   24,833   25,070   24,795   19,487 
Provision for loan and lease losses  1,777   1,200   850   569   (316)
Net interest income after provision for loan and lease losses  23,652   23,633   24,220   24,226   19,803 
           
Fees for wealth management services  8,995   9,194   9,600   9,105   9,263 
Service charges on deposits  742   721   752   712   658 
Loan servicing and other fees  502   397   597   591   450 
Net gain on sale of loans  751   685   778   808   471 
Net gain on sale of investment securities available for sale  58   60   3   810   390 
Net gain on sale of other real estate owned  33   -   75   15   4 
Dividends on bank stocks  330   138   299   615   211 
Insurance revenue  842   1,065   817   1,021   795 
Other operating income  1,415   1,090   1,256   1,088   641 
Non-interest income  13,668   13,350   14,177   14,765   12,883 
           
Salaries and wages  11,700   10,941   11,064   10,870   9,869 
Employee benefits  2,268   2,590   2,618   2,729   1,900 
Loss on pension termination  17,377   -   -   -   - 
Occupancy and bank premises  2,474   2,557   2,808   2,466   1,808 
Branch lease termination expense  929   -   -   -   - 
Furniture, fixtures and equipment  2,129   1,712   1,488   1,512   1,358 
Advertising  656   410   479   557   400 
Amortization of intangible assets  937   953   955   982   753 
Impairment of intangible assets  387   -   -   -   - 
Due diligence, merger-related and merger integration expenses  1,860   1,015   1,294   2,501   957 
Professional fees  1,010   843   827   673   809 
Pennsylvania bank shares tax  (46)  433   433   433   64 
Information technology  874   1,053   814   702   747 
Other operating expenses  4,396   2,896   3,202   4,004   3,267 
Non-interest expense  46,951   25,403   25,982   27,429   21,932 
           
(Loss) income before income taxes  (9,631)  11,580   12,415   11,562   10,754 
Income tax (benefit) expense  (3,276)  4,084   4,296   4,068   3,710 
Net (loss) income $(6,355) $7,496  $8,119  $7,494  $7,044 
           
Per share data:          
Weighted average shares outstanding  17,129,234   17,572,421   17,713,794   17,545,802   13,646,098 
Dilutive common shares    -     261,877     340,869     357,456     296,682 
Adjusted weighted average diluted shares  17,129,234   17,834,298   18,054,663   17,903,258   13,942,780 
           
Basic earnings (loss) per common share $(0.37) $0.43  $0.46  $0.43  $0.52 
           
Diluted earnings (loss) per common share $(0.37) $0.42  $0.45  $0.42  $0.51 
           
Dividend declared per share $0.20  $0.20  $0.19  $0.19  $0.19 
           
Effective tax rate  34.0%  35.3%  34.6%  35.2%  34.5%
           
Supplemental Non-GAAP Performance Measures* (Includes Reconciliation of Non-GAAP to GAAP Performance Measures)
Net (loss) income (a GAAP measure) $(6,355) $7,496  $8,119  $7,494  $7,044 
less: tax-effected net gain on sale of available for sale investments  (38)  (39)  (2)  (527)  (254)
add: tax-effected** loss on pension termination  11,295   -   -   -   - 
add: tax-effected** severance expense (Salaries and wages)  142   124   -   -   - 
add: tax-effected** branch lease termination expense  604   -   -   -   - 
add: tax-effected** debt and swap prepayment penalty (Other operating expenses)  397   -   -   339   - 
add: tax-effected** impairment of intangible assets  252   -   -   -   - 
add: tax-effected** due diligence, merger-related and merger integration  expenses  1,209   660   841   1,626   622 
Net income (core) (a non-GAAP measure) $7,506  $8,241  $8,958  $8,932  $7,412 
           
Weighted average shares outstanding  17,129,234   17,572,421   17,713,794   17,545,802   13,646,098 
Dilutive common shares  112,783   261,877   340,869   357,456   296,682 
Adjusted weighted average diluted shares  17,242,017   17,834,298   18,054,663   17,903,258   13,942,780 
Basic earnings per common share (core) (a non-GAAP measure) $0.44  $0.47  $0.51  $0.51  $0.54 
Diluted earnings per common share (core) (a non-GAAP measure) $0.44  $0.46  $0.50  $0.50  $0.53 
           
*The Corporation believes the presentation of the above non-GAAP financial measures provides useful supplemental information that is essential to an investor's proper understanding of the results of operations of the Corporation. Management uses these non-GAAP financial measures in its analysis of the Corporation's performance. This non-GAAP disclosure should not be viewed as a substitute for the financial measures determined in accordance with GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies
** assumed tax rate of 35%
           

 

Bryn Mawr Bank Corporation
Consolidated Statements of Income - (unaudited)
(dollars in thousands, except per share data)
     
    For The Twelve Months Ended December 31,
     2015     2014 
         
Interest and fees on loans and leases   $  102,432    $  78,541 
Interest on cash and cash equivalents    409     193 
Interest on investment securities:        
Taxable    5,018     3,596 
Non-taxable    497     399 
Dividends      186       177 
Total interest income   $  108,542    $  82,906 
         
Savings, NOW and market rate deposits    2,318     1,675 
Wholesale deposits    772     627 
Time deposits       1,122       596 
Interest on deposits    4,212     2,898 
Interest on short-term borrowings    48       17 
Interest on FHLB advances and other borrowings      3,554       3,163 
Interest on subordinated notes      601       - 
Total interest expense      8,415       6,078 
         
Net interest income      100,127       76,828 
Provision for loan and lease losses      4,396       884 
         
Net interest income after provision for loan and lease losses      95,731       75,944 
         
Fees for wealth management services       36,894       36,774 
Service charges on deposits      2,927       2,578 
Loan servicing and other fees      2,087       1,755 
Net gain on sale of loans      3,022       1,772 
Net gain on sale of investment securities available for sale      931       471 
Net gain on sale of other real estate owned      123       175 
Dividends on bank stocks      1,382       615 
Insurance revenue      3,745       1,210 
Other operating income      4,849       2,972 
Non-interest income      55,960       48,322 
         
Salaries and wages       44,575       37,113 
Employee benefits       10,205       7,340 
Loss on pension termination      17,377       - 
Occupancy and bank premises      10,305       7,305 
Branch lease termination expense      929       - 
Furniture fixtures and equipment      6,841       4,508 
Advertising      2,102       1,504 
Amortization of intangible assets      3,827       2,659 
Impairment of intangible assets      387       - 
Due diligence, merger-related and merger integration expenses      6,670       2,373 
Professional fees      3,353       3,017 
Pennsylvania bank shares tax      1,253       1,256 
Information technology      3,443       2,771 
Other operating expenses      14,498       11,572 
Non-interest expense      125,765       81,418 
         
Income before income taxes      25,926       42,848 
Income tax expense      9,172       15,005 
Net income   $  16,754    $  27,843 
         
Per share data:        
Weighted average shares outstanding      17,488,325       13,566,239 
Dilutive common shares      268,246       294,801 
Adjusted weighted average shares       17,756,571       13,861,040 
         
Basic earnings per common share   $0.96    $2.05 
         
Diluted earnings per common share   $0.94    $2.01 
         
Dividend declared per share   $0.78    $0.74 
         
Effective tax rate    35.4%    35.0%
         
Supplemental Non-GAAP Performance Measures* (Includes Reconciliation of Non-GAAP to GAAP Performance Measures)  
Net income (a GAAP measure)   $  16,754    $  27,843 
less: tax-effected net gain on sale of available for sale investments      (605)      (306)
add: tax-effected** loss on pension termination      11,295       - 
add: tax-effected** severance expense (Salaries and wages)      265       106 
add: tax-effected** branch lease termination expense      604       - 
add: tax-effected** debt and swap prepayment penalty (Other operating expenses)      735       - 
add: tax-effected** impairment of intangible assets      252       - 
add: tax-effected** due diligence, merger-related and merger integration  expenses      4,336       1,542 
Net income (core) (a non-GAAP measure)   $  33,636    $  29,185 
         
Weighted average shares outstanding      17,488,325       13,566,239 
Dilutive common shares      268,246       294,801 
Adjusted weighted average diluted shares       17,756,571       13,861,040 
Basic earnings per common share (core) (a non-GAAP measure)   $  1.92    $  2.15 
Diluted earnings per common share (core) (a non-GAAP measure)   $  1.89    $  2.11 
         
*The Corporation believes the presentation of the above non-GAAP financial measures provides useful supplemental information that is essential to an investor's proper understanding of the results of operations of the Corporation. Management uses these non-GAAP financial measures in its analysis of the Corporation's performance. This non-GAAP disclosure should not be viewed as a substitute for the financial measures determined in accordance with GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies
** assumed tax rate of 35% 
         

 

Bryn Mawr Bank Corporation
Consolidated Balance Sheets - (unaudited) 
(dollars in thousands)
          
            
     
            
  December 31, September 30, June 30, March 31, December 31, 
   2015   2015   2015   2015   2014  
Assets           
            
Interest-bearing deposits with banks $  124,615  $  100,980  $  156,282  $  244,248  $  202,552  
Investment securities - available for sale    348,966     341,421     349,496     334,746     229,577  
Investment securities - trading    3,950     3,451     4,029     4,035     3,896  
Loans held for sale    8,987     8,721     15,363     6,656     3,882  
Portfolio loans:           
Consumer    22,129     22,350     25,123     20,204     18,480  
Commercial & industrial    524,515     488,977     472,702     457,432     335,645  
Commercial mortgages    964,259     971,983     924,161     892,675     689,528  
Construction     90,421     82,820     88,122     81,408     66,267  
Residential mortgages    406,404     399,730     381,323     379,363     313,442  
Home equity lines & loans    209,473     212,258     211,982     209,037     182,082  
Leases    51,787     50,646     49,850     48,412     46,813  
Total portfolio loans and leases    2,268,988     2,228,764     2,153,263     2,088,531     1,652,257  
            
Earning assets    2,755,506     2,683,337     2,678,433     2,678,216     2,092,164  
            
Cash and due from banks    18,452     17,161     20,258     17,269     16,717  
Allowance for loan and lease losses    (15,857)    (15,935)    (14,959)    (14,296)    (14,586) 
Premises and equipment     45,339     44,370     43,164     42,888     33,748  
Accrued interest receivable     7,869     7,744     7,518     7,465     5,560  
Mortgage servicing rights    5,142     5,031     4,970     4,815     4,765  
Goodwill    104,765     104,338     104,322     101,619     35,502  
Other intangible assets    23,903     25,356     26,309     26,522     22,998  
Bank owned life insurance    38,371     38,157     32,941     32,772     20,535  
FHLB stock    12,942     11,742     11,542     11,541     11,523  
Deferred income taxes    11,137     11,216     11,066     12,057     7,011  
Other investments    9,460     9,499     9,295     9,238     5,226  
Other assets    13,968     10,726     15,155     13,073     5,343  
            
Total assets $  3,030,997  $  2,952,742  $  2,950,014  $  2,943,179  $  2,246,506  
            
Liabilities and shareholders' equity           
            
Interest-bearing deposits:           
Interest-bearing checking $  338,861  $  330,683  $  328,606  $  349,582  $  277,228  
Money market    749,726     748,983     699,263     717,441     566,354  
Savings    187,299     192,995     189,120     184,819     138,992  
Wholesale non-maturity deposits    67,717     65,636     65,365     69,555     66,693  
Wholesale time deposits    53,185     57,671     67,894     73,476     73,458  
Retail time deposits     229,253     238,269     274,008     263,996     118,400  
Total interest-bearing deposits    1,626,041     1,634,237     1,624,256     1,658,869     1,241,125  
            
Non-interest-bearing deposits    626,684     605,607     636,390     582,495     446,903  
Total deposits    2,252,725     2,239,844     2,260,646     2,241,364     1,688,028  
            
Short-term borrowings    94,167     24,264     26,406     38,372     23,824  
Long-term FHLB advances and other borrowings    254,863     254,893     244,923     250,088     260,146  
Subordinated notes    29,479     29,466     -     -     -  
Other liabilities    34,052     36,120     36,941     35,452     29,034  
Shareholders' equity    365,711     368,155     381,098     377,903     245,474  
            
Total liabilities and shareholders' equity $  3,030,997  $  2,952,742  $  2,950,014  $  2,943,179  $  2,246,506  
            
            
            
Bryn Mawr Bank Corporation 
Consolidated Quarterly Average Balance Sheets - (unaudited) 
(dollars in thousands) 
   For The Three Months Ended 
  December 31, September 30, June 30, March 31, December 31, 
   2015   2015   2015   2015   2014  
Assets           
            
Interest-bearing deposits with banks $  90,832  $  165,723  $  182,099  $  206,694  $  115,276  
Investment securities - available for sale    350,668     352,006     347,046     370,293     252,422  
Investment securities - trading    3,571     4,022     4,034     3,897     3,804  
Loans held for sale    7,531     10,527     6,735     3,470     982  
Portfolio loans and leases     2,240,189     2,181,125     2,111,371     2,079,412     1,654,239  
Earning assets    2,692,791     2,713,403     2,651,285     2,663,766     2,026,723  
            
Cash and due from banks    18,005     17,160     16,222     19,092     13,795  
Allowance for loan and lease losses    (16,106)    (15,066)    (14,346)    (14,866)    (15,837) 
Premises and equipment    45,075     43,699     43,172     44,681     33,290  
Goodwill    104,342     104,323     102,237     98,744     35,539  
Other intangible assets    24,950     25,918     26,879     26,316     23,392  
Bank owned life insurance    38,231     38,015     32,830     32,655     20,478  
FHLB stock    12,042     11,592     11,542     11,928     11,419  
Deferred income taxes    11,344     10,684     11,819     10,449     2,941  
Other assets    28,337     31,580     29,061     25,391     31,102  
            
Total assets $  2,959,011  $  2,981,308  $  2,910,701  $  2,918,156  $  2,182,842  
            
Liabilities and shareholders' equity           
            
Interest-bearing deposits:           
Interest-bearing checking $  327,520  $  334,350  $  339,101  $  341,756  $  259,408  
Money market    742,416     735,842     699,100     724,806     553,708  
Savings    190,639     190,337     186,343     185,848     143,650  
Wholesale non-maturity deposits    66,856     65,671     61,306     66,677     60,197  
Wholesale time deposits    52,538     67,606     69,191     73,443     68,525  
Retail time deposits    231,605     251,170     273,718     267,800     120,855  
Total interest-bearing deposits    1,611,574     1,644,976     1,628,759     1,660,330     1,206,343  
            
Non-interest bearing deposits    634,969     625,547     580,240     534,403     446,252  
Total deposits    2,246,543     2,270,523     2,208,999     2,194,733     1,652,595  
            
Short-term borrowings    26,092     28,166     34,980     55,207     19,407  
Long-term FHLB advances and other borrowings    254,880     248,606     249,678     266,342     237,835  
Subordinated notes    29,471     18,190     -     -     -  
Other liabilities    36,665     39,219     37,890     30,935     24,070  
Shareholders' equity    365,360     376,604     379,154     370,939     248,935  
            
Total liabilities and shareholders' equity $  2,959,011  $  2,981,308  $  2,910,701  $  2,918,156  $  2,182,842  
            

 

Bryn Mawr Bank Corporation
Consolidated Year-to-Date Average Balance Sheets - (unaudited) 
(dollars in thousands)
       
         
         
     
    For The Twelve Months Ended December 31,
     2015     2014 
Assets        
         
Interest bearing deposits with banks   $  161,032    $  83,163 
Investment securities - available for sale      354,941       267,743 
Investment securities - trading      3,881       3,591 
Loans held for sale      7,086       972 
Portfolio loans and leases      2,153,542       1,608,248 
Earning assets      2,680,482       1,963,717 
         
Cash and due from banks      17,615       12,730 
Allowance for loan and lease losses      (15,099)      (15,836)
Premises and equipment      44,157       32,812 
Goodwill      102,169       33,523 
Intangible assets      26,012       19,698 
Bank owned life insurance      35,455       20,365 
FHLB stock      11,815       12,144 
Deferred income taxes      11,339       5,960 
Other assets      28,568       30,369 
         
Total assets   $  2,942,513    $  2,115,482 
         
Liabilities and shareholders' equity        
         
Interest-bearing deposits:        
Interest-bearing checking   $  335,638    $  260,652 
Money market      725,619       555,267 
Savings      188,310       142,210 
Wholesale non-maturity deposits      65,130       47,103 
Wholesale time deposits      65,643       51,956 
Time deposits      255,961       126,097 
Total interest-bearing deposits      1,636,301       1,183,285 
         
Non-interest-bearing deposits      594,122       426,274 
Total deposits      2,230,423       1,609,559 
         
Short-term borrowings      36,010       227,137 
Long-term FHLB advances and other borrowings     254,828       15,960 
Subordinated notes      12,013       - 
Other liabilities      36,151       22,048 
Shareholders' equity      373,088       240,778 
         
Total liabilities and shareholders' equity   $  2,942,513    $  2,115,482 
         

 

Bryn Mawr Bank Corporation
Quarterly Tax-Equivalent Net Interest Margin Calculation - (unaudited)
(dollars in thousands)
                      
  For The Three Months Ended
  December 31, 2015September 30, 2015June 30, 2015March 31, 2015December 31, 2014
(dollars in thousands) Average BalanceInterest Income/ ExpenseAverage Rates Earned/ Paid Average BalanceInterest Income/ ExpenseAverage Rates Earned/ Paid Average BalanceInterest Income/ ExpenseAverage Rates Earned/ Paid Average BalanceInterest Income/ ExpenseAverage Rates Earned/ Paid Average BalanceInterest Income/ ExpenseAverage Rates Earned/ Paid 
                      
Assets:                     
Interest-bearing deposits with other banks $90,832 $63  0.28 %$165,723 $107  0.26 %$182,099 $124  0.27 %$206,694 $115  0.23 %$115,276 $65  0.22 %
Investment securities - available for sale:                     
Taxable  307,524  1,432  1.85 % 310,582  1,172  1.50 % 310,011  1,184  1.53 % 335,208  1,336  1.62 % 221,190  973  1.75 %
Tax-exempt  43,144  195  1.79 % 41,424  186  1.78 % 37,035  157  1.70 % 35,085  203  2.35 % 31,232  142  1.80 %
Total investment securities - available for sale 350,668  1,627  1.84 % 352,006  1,358  1.53 % 347,046  1,341  1.55 % 370,293  1,539  1.69 % 252,422  1,115  1.75 %
                      
Investment securities  - trading  3,571  60  6.67 % 4,022  5  0.49 % 4,034  11  1.09 % 3,897  4  0.42 % 3,804  9  0.94 %
                      
Loans and leases *  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 % 1,655,221  19,972  4.79 %
                      
Total interest-earning assets  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 % 2,026,723  21,161  4.14 %
                      
Cash and due from banks  18,005     17,160     16,222     19,092     13,795    
Less: allowance for loan and lease losses  (16,106)    (15,066)    (14,346)    (14,866)    (15,837)   
Other assets  264,321     265,811     257,540     250,164     158,161    
                      
Total assets $2,959,011    $2,981,308    $2,910,701    $2,918,156    $2,182,842    
                      
Liabilities:                     
                      
Interest-bearing deposits:                     
Savings, NOW and market rate deposits $1,260,575 $565  0.18 %$1,260,529 $584  0.18 %$1,224,544 $575  0.19 %$1,252,410 $594  0.19 %$956,766 $422  0.17 %
Wholesale deposits  119,394  186  0.62 % 133,277  203  0.60 % 130,497  195  0.60 % 140,120  188  0.54 % 128,722  190  0.59 %
Time deposits  231,605  295  0.51 % 251,170  289  0.46 % 273,718  292  0.43 % 267,800  246  0.37 % 120,855  143  0.47 %
Total interest-bearing deposits  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 % 1,206,343  755  0.25 %
                      
Borrowings:                     
Short-term borrowings  26,092  9  0.14 % 28,166  8  0.11 % 34,980  10  0.11 % 55,344  21  0.15 % 19,407  4  0.08 %
Long-term FHLB advances and other borrowings 254,880  912  1.42 % 248,606  881  1.41 % 249,678  851  1.37 % 266,205  910  1.39 % 237,835  809  1.35 %
Subordinated notes  29,471  370  4.98 % 18,190  231  5.04 % -  -  - % -  -  - % -  -  - %
Total borrowings  310,443  1,291  1.65 % 294,962  1,120  1.51 % 284,658  861  1.21 % 321,549  931  1.17 % 257,242  813  1.25 %
                      
Total interest-bearing liabilities  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 % 1,463,585  1,568  0.43 %
                      
Noninterest-bearing deposits  634,969     625,547     580,240     534,403     446,252    
Other liabilities  36,665     39,219     37,890     30,935     24,070    
Total noninterest-bearing liabilities  671,634     664,766     618,130     565,338     470,322    
                      
Total liabilities  2,593,651     2,604,704     2,531,547     2,547,217     1,933,907    
                      
Shareholders' equity  365,360     376,604     379,154     370,939     248,935    
                      
Total liabilities and shareholders' equity $2,959,011    $2,981,308    $2,910,701    $2,918,156    $2,182,842    
                      
Interest income to earning assets    4.11 %   3.97 %   4.10 %   4.09 %   4.14 %
                      
Net interest spread    3.63 %   3.52 %   3.70 %   3.69 %   3.71 %
Effect of noninterest-bearing sources    0.14 %   0.13 %   0.11 %   0.10 %   0.13 %
                      
Tax-equivalent net interest margin  $25,571  3.77 % $24,972  3.65 % $25,176  3.81 % $24,925  3.79 % $19,593  3.84 %
                      
Tax-equivalent adjustment  $  142   0.02  % $  139   0.02  % $  106  0.02  % $   130   0.02  % $   106   0.02  %
                      
Supplemental Information Regarding Accretion of Fair Value Marks
Accretion of fair value marks on loans  $707  0.10%  $763  0.11%  $1,246  0.19%  $1,127  0.17%  $513  0.10% 
Accretion of fair value marks on time deposits   123  0.02%   188  0.03%   205  0.03%   245  0.04%   4  0.00% 
Accretion of fair value marks on borrowings   65  0.01%   65  0.01%   65  0.01%   70  0.01%   30  0.01% 
Net interest income from fair value marks  $895    $1,016    $1,516    $1,442    $547   
Effect of fair value mark accretion on tax-equivalent net interest margin   0.13%    0.15%    0.23%    0.22%    0.11%  
* Average loans and leases include portfolio loans and leases, and loans held for sale. Non-accrual loans are also included in the average loan and leases balances.
                      

 

Bryn Mawr Bank Corporation
Year-To-Date Tax-Equivalent Net Interest Margin Calculation - (unaudited)
(dollars in thousands)
           
  For The Twelve Months Ended December 31,
  2015 2014
  Average
Balance
Interest 
Income/ 
Expense
Average
Rates
Earned/
Paid
  Average
Balance
Interest
Income/ 
Expense
Average
Rates
Earned/
Paid
 
           
Assets:          
Interest-bearing deposits with other banks $161,032  409 0.25% $83,163  193 0.23%
Investment securities available for sale:         %
Taxable  315,741  5,124 1.62%  233,054  3,740 1.60%
Tax-exempt  39,200  741 1.89%  34,689  594 1.71%
           
Investment securities - available for sale  354,941  5,865 1.65%  267,743  4,334 1.62%
           
Investment securities - trading  3,881  80 2.06%  3,591  33 0.92%
           
Loans and leases *  2,160,628  102,707 4.75%  1,609,220  78,781 4.90%
           
Total interest earning assets  2,680,482  109,061 4.07%  1,963,717  83,341 4.24%
           
Cash and due from banks  17,615      12,730    
Less allowance for loan and lease losses  (15,099)     (15,836)   
Other assets  259,515      154,871    
           
Total assets $2,942,513     $2,115,482    
           
Liabilities:          
           
Savings,NOW and market rate deposits $1,249,567 $2,318 0.19% $958,129 $1,675 0.17%
Wholesale deposits  130,773  772 0.59%  99,059  627 0.63%
Time deposits  255,961  1,122 0.44%  126,097  596 0.47%
Total interest-bearing deposits  1,636,301  4,212 0.26%  1,183,285  2,898 0.24%
           
Short-term borrowings  36,010  48 0.13%  15,960  17 0.11%
Long-term FHLB advances and other borrowings  254,828  3,554 1.39%  227,137  3,163 1.39%
Subordinated notes  12,013  601 5.00%  -  - -%
Total Borrowings  302,851  4,203 1.39%  243,097  3,180 1.31%
           
Total interest-bearing liabilities  1,939,152  8,415 0.43%  1,426,382  6,078 0.43%
           
           
Noninterest-bearing deposits  594,122      426,274    
Other liabilities  36,151      22,048    
Total noninterest-bearing liabilities  630,273      448,322    
           
Total liabilities  2,569,425      1,874,704    
           
Shareholders' equity  373,088      240,778    
           
Total liabilities and shareholders' equity $2,942,513     $2,115,482    
           
Interest income to earning assets   4.07%   4.24%
           
Net interest spread   3.64%   3.81%
Effect of noninterest-bearing sources   0.11%   0.12%
           
Tax-equivalent net interest margin  $100,646 3.75%  $77,263 3.93%
           
Tax-equivalent adjustment  $   519  0.02 %  $   435  0.02 %
           
Supplemental Information Regarding Accretion of Fair Value Marks        
Accretion of fair value marks on loans  $3,843     $2,730   
Accretion of fair value marks on time deposits   761      23   
Accretion of fair value marks on borrowings   265      121   
Net interest income from fair value marks  $4,869     $2,874   
Effect of fair value mark accretion on tax-equivalent net interest margin   0.18%     0.15%  
* Average loans and leases include portfolio loans and leases, and loans held for sale. Non-accrual loans are also included in the average loan and lease balances 
  

 

Bryn Mawr Bank Corporation     
Consolidated Selected Financial Data - (unaudited)     
(dollars in thousands, except per share data)      
              
        
  For The Three Months Ended or As Of     
  December 31, September 30, June 30, March 31, December 31,     
   2015   2015   2015   2015   2014      
Asset Quality Data               
                
Nonaccrual loans and leases $9,845  $12,315  $8,996  $9,130  $10,096      
90 days or more past due loans, still accruing  -   -   -   -   -      
Nonperforming loans and leases  9,845   12,315   8,996   9,130   10,096      
Other real estate owned  2,638   1,010   843   1,532   1,147      
Total nonperforming assets $12,483  $13,325  $9,839  $10,662  $11,243      
                
Troubled debt restructurings included in nonperforming assets $1,535  $3,711  $3,960  $4,217  $4,315      
Troubled debt restructurings in compliance with modified terms  5,280   4,062   4,078   4,145   4,157      
Total troubled debt restructurings $6,815  $7,773  $8,038  $8,362  $8,472      
                
                
Nonperforming loans and leases / portfolio loans & leases  0.43%  0.55%  0.42%  0.44%  0.61%     
Nonperforming assets / total assets  0.41%  0.45%  0.33%  0.36%  0.50%     
Net loan and lease charge-offs / average loans and leases (annualized)  0.33%  0.04%  0.04%  0.16%  0.17%     
                
Delinquency rate* - Performing and nonperforming loans and leases 30 days or more past due  0.52%  0.62%  0.58%  0.51%  0.50%     
Performing loans and leases - 30-89 days past due $5,601  $4,960  $5,233  $3,361  $2,232      
Delinquency rate* - Performing loans and leases - 30-89 days past due  0.25%  0.22%  0.24%  0.16%  0.13%     
                
* as a percentage of total loans and leases               
                
Changes in the allowance for loan and lease losses:               
                
Balance, beginning of period $15,935  $14,959  $14,296  $14,586  $15,599      
Charge-offs  (1,906)  (308)  (312)  (928)  (864)     
Recoveries  51   84   125   69   167      
Net charge-offs  (1,855)  (224)  (187)  (859)  (697)     
Provision for loan and lease losses  1,777   1,200   850   569   (316)     
Balance, end of period $15,857  $15,935  $14,959  $14,296  $14,586      
                
Total Allowance / Total Portfolio loans and leases  0.70%  0.71%  0.69%  0.68%  0.88%     
Allowance on originated loans and leases / Originated loans and leases (a non-GAAP measure)  0.84%  0.88%  0.88%  0.90%  0.94%     
(Total Allowance + Loan mark) / Total Gross portfolio loans and leases (a non-GAAP measure)  1.44%  1.52%  1.60%  1.61%  1.27%     
Total Allowance / nonperforming loans and leases  161.1%  129.4%  166.3%  156.6%  144.5%     
                
Supplemental Loan and Allowance Information Used to Calculate Non-GAAP Measures               
                
Total Allowance $15,857  $15,935  $14,959  $14,296  $14,586      
less: Allowance on acquired loans  -   35   22   125   86      
Allowance on originated loans and leases $15,857  $15,900  $14,937  $14,171  $14,500      
                
Total Allowance $15,857  $15,935  $14,959  $14,296  $14,586      
Loan mark on acquired loans  17,108   18,179   19,816   19,708   6,422      
Total Allowance + Loan mark $32,965  $34,114  $34,775  $34,004  $21,008      
Total Portfolio loans and leases $2,268,988  $2,228,764  $2,153,263  $2,088,532  $1,652,257      
less: Originated loans and leases  1,883,869   1,804,835   1,692,041   1,571,377   1,535,003      
Net acquired loans $385,119  $423,929  $461,222  $517,155  $117,254      
add: Loan mark on acquired loans  17,108   18,179   19,816   19,708   6,422      
Gross acquired loans (excludes loan mark) $402,227  $442,108  $481,038  $536,863  $123,676      
Originated loans and leases  1,883,869   1,804,835   1,692,041   1,571,377   1,535,003      
Total Gross portfolio loans and leases $2,286,096  $2,246,943  $2,173,079  $2,108,240  $1,658,679      
                
        
  December 31, September 30, June 30, March 31, December 31,     
   2015   2015   2015   2015   2014      
Selected ratios (annualized):               
                
Return on average assets  -0.85%  1.00%  1.12%  1.04%  1.28%     
Return on average shareholders' equity  -6.90%  7.90%  8.59%  8.19%  11.23%     
Return on average tangible equity (2)  -10.68%  12.07%  13.02%  12.36%  14.71%     
Tax-equivalent yield on loans and leases  4.62%  4.65%  4.85%  4.91%  4.79%     
Tax-equivalent yield on interest-earning assets  4.11%  3.97%  4.10%  4.09%  4.14%     
Cost of interest-bearing funds  0.48%  0.45%  0.40%  0.40%  0.43%     
Tax-equivalent net interest margin  3.77%  3.65%  3.81%  3.79%  3.84%     
Book value per share $21.42  $21.45  $21.43  $21.26  $17.83      
Tangible book value per share $13.89  $13.89  $14.08  $14.05  $13.59      
Shares outstanding at end of period  17,071,523   17,166,323   17,786,293   17,777,628   13,769,336      
                
Selected data:                
                
Mortgage loans originated $55,867  $76,169  $63,285  $35,728  $29,929      
                
Residential mortgage loans sold - servicing retained $24,063  $30,515  $28,204  $24,569  $14,382      
Residential mortgage loans sold - servicing released  7,150   10,579   9,257   2,644   92      
Total residential mortgage loans sold $31,213  $41,094  $37,461  $27,213  $14,474      
                
Percentage gain on residential mortgage loans sold  1.57%  1.05%  2.08%  2.97%  3.25%     
                
Residential mortgage loans serviced for others $601,939  $601,999  $595,440  $591,989  $590,659      
                
                
Total wealth assets under management, administration, supervision and brokerage (1) $8,364,805  $8,218,276  $8,536,024  $7,816,441  $7,699,908      
                
 (1) Brokerage assets represent assets held at a registered broker dealer under a clearing agreement. 
 
 (2) Average tangible equity equals average shareholders' equity minus average goodwill and average other intangible assets. 
 
                
  For the Twelve Months Ended December 31,         
Selected ratios (annualized):  2015     2014          
                
Return on average assets  0.57%    1.32%         
Return on average shareholders' equity  4.49%    11.56%         
Return on average tangible equity (1)  6.84%    14.85%         
Tax-equivalent yield on loans and leases  4.75%    4.90%         
Tax-equivalent yield on interest-earning assets  4.07%    4.24%         
Cost of interest-bearing liabilities  0.43%    0.43%         
Tax-equivalent net interest margin  3.75%    3.93%         
                
Selected data:                
                
Residential mortgage loans originated $231,049    $117,257          
                
Residential mortgage loans sold - servicing retained $107,351    $54,859          
Residential mortgage loans sold - servicing released  29,630     783          
Total residential mortgage loans sold $136,981    $55,642          
                
 (1) Average tangible equity equals average shareholders' equity minus average goodwill and average other intangible assets. 
 
                
                
                
                
Investment Portfolio - Available for Sale As of December 31, 2015   As of December 31, 2014 
                
      Net       Net 
  Amortized Fair Unrealized   Amortized Fair Unrealized 
SECURITY DESCRIPTION Cost Value Gain / (Loss)   Cost Value Gain / (Loss) 
                
U.S. Treasury securities $101  $101  $-    $102  $100  $(2) 
Obligations of the U.S. Government and agencies  101,342   101,495   153     66,881   66,762   (119) 
State & political subdivisions - tax-free  41,367   41,442   75     28,955   29,045   90  
State & political subdivisions - taxable  525   524   (1)    -   -   -  
Mortgage-backed securities  157,422   158,689   1,267     79,498   81,382   1,884  
Collateralized mortgage obligations  29,756   29,799   43     34,618   34,797   179  
Other debt securities  1,700   1,691   (9)    1,900   1,900   -  
Bond mutual funds  11,956   11,810   (146)    11,956   11,835   (121) 
Other investments  3,607   3,415   (192)    3,643   3,756   113  
Total investment portfolio available for sale $347,776  $348,966  $1,190    $227,553  $229,577  $2,024  
                
                
                
Capital Ratios               
  Regulatory Minimum             
  To Be December 31, September 30, June 30, March 31, December 31,   
Bryn Mawr Trust Company Well Capitalized  2015  2015* 2015* 2015*  2014    
                
Tier I capital to risk weighted assets ("RWA")  8.00%  10.12%  11.93%  12.00%  12.10%  11.32%   
Total (Tier II) capital to RWA  10.00%  10.78%  12.61%  12.66%  12.46%  12.19%   
Tier I leverage ratio  5.00%  8.51%  9.75%  9.77%  9.52%  8.98%   
Tangible equity ratio N/A  7.74%  8.84%  8.54%  8.42%  8.19%   
Common equity Tier I capital to RWA  6.50%  10.12%  11.93%  12.00%  12.10% N/A   
                
Bryn Mawr Bank Corporation               
                
Tier I capital to RWA  8.00%  10.72%  11.54%  12.50%  12.77%  12.00%   
Total (Tier II) capital to RWA  10.00%  12.61%  13.47%  13.16%  13.42%  12.87%   
Tier I leverage ratio  5.00%  9.02%  9.44%  10.20%  10.05%  9.43%   
Tangible equity ratio N/A  8.17%  8.45%  8.88%  8.87%  8.61%   
Common equity Tier I capital to RWA  6.50%  10.72%  11.54%  12.50%  12.77%  12.00%   
                
                
* certain capital ratios differ from those previously reported due to an immaterial adjustment to risk weighted assets 
                


Frank Leto, President, CEO 610-581-4730 Mike Harrington, CFO 610-526-2466

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