Market Overview

Bryn Mawr Bank Corporation Reports Record Quarterly Earnings of $15.3 Million in First Full Quarter with Royal Bank, Driven by $7.1 Million Increase in Net Interest Income and Strong Noninterest Revenues, Declares $0.22 Dividend

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BRYN MAWR, Pa., April 19, 2018 (GLOBE NEWSWIRE) -- Bryn Mawr Bank Corporation (NASDAQ:BMTC) (the "Corporation"), parent of The Bryn Mawr Trust Company (the "Bank") today reported net income of $15.3 million, or $0.75 diluted earnings per share for the three months ended March 31, 2018, as compared to a net loss of $6.2 million, or $(0.35) diluted loss per share, for the three months ended December 31, 2017, and $9.0 million, or $0.53 diluted earnings per share, for the three months ended March 31, 2017.

On a non-GAAP basis, core net income, which excludes due diligence and merger-related expenses, income tax charges related to re-measurement of net deferred tax assets, and certain other non-core income and expense items, as detailed in the appendix to this earnings release, was $19.3 million, or $0.94 diluted earnings per share, for the three months ended March 31, 2018, as compared to $11.3 million, or $0.63 diluted earnings per share, for the three months ended December 31, 2017, and $9.4 million, or $0.55 diluted earnings per share, for the three months ended March 31, 2017. 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 pleased with the solid results posted in the first quarter. Our merger with Royal Bank, which closed at the end of 2017, has already begun to have a significant impact on our bottom line," stated Frank Leto, President and Chief Executive Officer. "We successfully completed the combination of our banking systems in late February, and with all branch locations now operating under the BMT banner, we are able to offer an expanded range of financial solutions to clients from both institutions," continued Mr. Leto.

"The strong results we witnessed this quarter included increases in net interest income, wealth management fees, insurance revenues and other operating income, along with the reduced income tax burden as a result of the Tax Cuts and Jobs Act," added Mr. Leto, continuing, "We are excited about the savings and additional capital that the Tax Reform legislation has and will continue to create.  We intend to put some of these benefits to work through investments in our businesses, team members, and the communities we serve.  We are actively evaluating investments to further our private banking strategy, enhance our systems to improve client experience and advance the development of our operating platform, all with the goal of increasing shareholder value by positioning ourselves for future growth and performance."

The Board of Directors of the Corporation declared a quarterly dividend of $0.22 per share, payable June 1, 2018 to shareholders of record as of May 1, 2018.

SIGNIFICANT ITEMS OF NOTE
Results of Operations – First Quarter 2018 Compared to Fourth Quarter 2017

  • Net income for the three months ended March 31, 2018 was $15.3 million, as compared to a net loss of $6.2 million for the three months ended December 31, 2017. The primary cause of the net loss in the fourth quarter of 2017 was the $15.2 million income tax charge related to the re-measurement of net deferred tax assets as a result of the Tax Cuts and Jobs Act ("Tax Reform"). Aside from the decrease in income tax expense, net interest income for the three months ended March 31, 2018 increased by $7.1 million, as the loans and leases acquired in the Royal Bank merger contributed to the $8.4 million increase in interest on loans and leases. In addition to the increase in net interest income, fees for wealth management services, commissions and fees from our insurance division, net gain on sale of other real estate owned and other operating income increased by $334 thousand, $183 thousand, $268 thousand and $2.8 million, respectively, for the three months ended March 31, 2018, as compared to the three months ended December 31, 2017.

    On a non-GAAP basis, core net income, which excludes the above Tax Reform-related income tax charges, due diligence and merger-related expenses and other non-core income and expense items, as detailed in the appendix to this earnings release, was $19.3 million, or $0.94 per diluted share for the three months ended March 31, 2018, as compared to $11.3 million or $0.63 per diluted share for the fourth quarter of 2017.  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.
  • Net interest income for the first quarter of 2018 increased $7.1 million, or 23.5%, over the linked-quarter ended December 31, 2017. Average interest-earning assets increased $515.5 million, primarily as a result of the loans and leases acquired from Royal Bank. Average loans and leases increased $486.0 million between the fourth quarter of 2017 and the first quarter of 2018. The increase in interest-earning assets was accompanied by a $457.6 million increase in interest-bearing liabilities, which was also largely the result of interest-bearing deposits and junior subordinated debentures acquired from Royal Bank and the $70 million of subordinated notes issued in December 2017.
     
  • Tax-equivalent net interest income for the three months ended March 31, 2018 was $37.5 million, an increase of $7.0 million over the linked quarter, driven by the assets and liabilities acquired from Royal Bank as well as a $2.7 million increase in the accretion of purchase accounting fair value marks between the quarters.

    Tax-equivalent interest and fees on loans and leases for the three months ended March 31, 2018 increased $8.4 million over the linked quarter.  Average loans and leases for the three months ended March 31, 2018 increased $486.0 million over the previous quarter and experienced a 44 basis point increase in tax-equivalent yield.

    Average available for sale investment securities increased by $31.2 million over the linked quarter, and experienced a 12 basis point tax-equivalent yield increase. The increase in volume and yield on available for sale investment securities resulted in a $254 thousand increase in tax-equivalent interest income for the first quarter of 2018 as compared to the fourth quarter of 2017.  The majority of the investment portfolio acquired from Royal Bank was sold immediately following the close of the merger and did not impact interest income from available for sale investment securities.

    Interest expense on deposits for the three months ended March 31, 2018 increased $733 thousand over the linked quarter.  Average interest-bearing deposits increased $404.3 million accompanied by a five basis point increase in the rate paid on deposits.  The increase in average interest-bearing deposits was largely related to the deposits acquired from Royal Bank.

    Average subordinated notes for the three months ended March 31, 2018 increased $54.6 million over the linked quarter with the rate paid increasing by two basis points to 4.71%.  The increase was primarily related to the $70 million of 4.25% fixed-to-floating subordinated notes issued on December 13, 2017.  Average junior subordinated debentures for the three months ended March 31, 2018 increased $21.4 million over the linked quarter as the Corporation acquired $21.4 million of floating rate junior subordinated debentures currently at an effective rate of 5.45% from the Royal Bank merger. The volume increase in both borrowing types resulted in an increase in interest expense on subordinated notes and junior subordinated debentures of $625 thousand and $242 thousand, respectively, on a linked-quarter basis.
  • The tax-equivalent net interest margin was 3.94% for the first quarter of 2018 as compared to 3.62% for the fourth quarter of 2017.  Adjusting for the impact of the accretion of purchase accounting fair value marks, the adjusted tax-equivalent net interest margin was 3.62% and 3.58% for the first quarter of 2018 and fourth quarter of 2017, respectively, an increase of four basis points. 
     
  • Noninterest income for the three months ended March 31, 2018 of $19.5 million increased $4.0 million from the fourth quarter of 2017. Items contributing to the increase included a $2.8 million increase in other operating income comprised primarily of a $2.3 million recovery of the purchase accounting fair value mark that had been recorded on a purchased credit impaired loan acquired from Royal Bank, which paid off, in full, during the first quarter of 2018. A $334 thousand increase in fees for wealth management services, a $183 thousand increase in insurance revenue and a $268 thousand increase in net gain on sale of other real estate owned were also recorded during the quarter.
     
  • Noninterest expense for the three months ended March 31, 2018 increased $5.0 million, to $36.0 million, as compared to $31.0 million for the fourth quarter of 2017. The increase on a linked-quarter basis was related to increases of $2.4 million in salaries and wages, $991 thousand in employee benefits and $402 thousand in occupancy and bank premises, all of which were directly related to the staff and facilities additions from the Royal Bank merger. In addition, due diligence, merger-related and merger integration expenses increased $812 thousand on a linked-quarter basis. While much of the merger-related expenses associated with the Royal Bank merger were recorded at the time of the merger, certain expenses incurred in connection with the banking system conversion, contract terminations and lease terminations are recorded as they are incurred.
     
  • For the three months ended March 31, 2018, net loan and lease charge-offs totaled $893 thousand, as compared to $556 thousand for the fourth quarter of 2017. The provision for loan and lease losses (the "Provision") for the three months ended March 31, 2018 was $1.0 million, a $47 thousand decrease from $1.1 million for the fourth quarter of 2017. The credit quality of the loan and lease portfolio remains stable, with the increase in the allowance for loan and lease losses (the "Allowance") largely related to the organic growth of the portfolio. Nonperforming loans as of March 31, 2018 totaled $7.5 million, a decrease of $1.0 million from December 31, 2017.
     
  • Income tax expense for the first quarter of 2018 decreased $15.3 million as compared to the fourth quarter of 2017. Included in tax expense for both the fourth quarter of 2017 and the first quarter of 2018 were discrete tax charges of $15.2 million and $590 thousand, respectively, related to the re-measurement of net deferred tax assets as a result of Tax Reform. Excluding these discrete income tax charges related to Tax Reform, the effective tax rate for the first quarter of 2018 was 20.3% as compared to 34.5% for the fourth quarter of 2017.

Results of Operations – First Quarter 2018 Compared to First Quarter 2017

  • Net income for the three months ended March 31, 2018 was $15.3 million, or $0.75 diluted earnings per share, as compared to $9.0 million, or diluted earnings per share of $0.53 for the same period in 2017. Contributing to the $6.2 million increase in net income was a $10.0 million increase in net interest income and increases of $1.0 million, $930 thousand, $666 thousand and $3.2 million in fees for wealth management services, insurance commissions, capital markets revenue and other operating income, respectively. These increases were partially offset by increases of $3.5 million, $1.2 million and $524 thousand in salaries and wages, employee benefits and occupancy and bank premises expenses, respectively. These cost increases were primarily related to the addition of the Royal Bank staff and branch infrastructure and, to a lesser extent, the addition of Hirshorn Boothby in May 2017 and the establishment of our Capital Markets group in the second quarter of 2017. Also contributing to the net income increase was the reduction in our effective income tax rate as a result of Tax Reform, which decreased from 33.9% for the three months ended March 31, 2017 to 23.3% for the same period in 2018. Included in the rate for the first quarter of 2018 was the effect of a discrete tax charge related to the re-measurement of net deferred tax assets, associated with Tax Reform. Excluding this discrete item, the effective rate for the first quarter of 2018 was 20.3%.

    On a non-GAAP basis, core net income, which excludes the above Tax Reform-related income tax charges, due diligence and merger-related expenses and other non-core income and expense items, as detailed in the appendix to this earnings release, was $19.3 million, or $0.94 per diluted share for the three months ended March 31, 2018 as compared to $9.4 million, or $0.55 per diluted share for the same period in 2017.  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.
  • Tax-equivalent net interest income for the three months ended March 31, 2018 was $37.5 million, an increase of $9.9 million over the same period in 2017.  Contributing to the increase was a $2.3 million increase in the accretion of purchase accounting fair value marks between the first quarters of 2018 and 2017. 

    Tax-equivalent interest and fees on loans and leases increased $12.1 million for the three months ended March 31, 2018 as compared to the same period in 2017.  Average loans and leases for the first quarter of 2018 increased $735.5 million from the same period in 2017 and experienced a 48 basis point increase in tax-equivalent yield.  Excluding the effect of the accretion of purchase accounting fair value marks on loans and leases, the adjusted tax-equivalent yield on loans and leases increased by 27 basis points between the first quarters of 2017 and 2018. The increases in short-term rates during 2017 and 2018 contributed to the increase in tax-equivalent yield on loans. The increase in average loans and leases for the first quarter of 2018 as compared to the same period in 2017 was related to the loans and leases acquired in the Royal Bank merger which initially increased loans and leases by $567.3 million, as well as organic loan growth during the period.

    Average available for sale investment securities increased by $133.5 million for the three months ended March 31, 2018 as compared to the same period in 2017, and experienced a 26 basis point tax-equivalent yield increase. The increase in volume and yield on available for sale investment securities resulted in a $958 thousand increase in tax-equivalent interest income on available for sale investment securities for the first quarter of 2018 as compared to the same period in 2017.

    Partially offsetting the effect on interest income associated with the increase in average loans and leases and available for sale investment securities was a $1.6 million increase in interest expense on deposits for the first quarter of 2018 as compared to the same period in 2017. Average interest-bearing deposits increased by $583.3 million, and was accompanied by an 18 basis point increase in rate paid between the first quarters of 2018 and 2017. The increase in average interest-bearing deposits between the first quarters of 2018 and 2017 was largely related to the interest-bearing deposits assumed in the Royal Bank merger, which initially totaled $494.8 million.

    In addition to the increased interest expense on deposits, a $467 thousand increase in interest expense on long- and short-term borrowings between the periods was attributed to a $66.3 million increase in average long- and short-term borrowings coupled with a 153 basis point increase in rate paid on long- and short-term borrowings for the three months ended March 31, 2018 as compared to the same period in 2017.

    Average subordinated notes for the three months ended March 31, 2018 increased $68.9 million as compared to the same period in 2017 with the rate paid decreasing by 37 basis points to 4.71% for the three months ended March 31, 2018.  The volume increase in subordinated notes was the result of the December 13, 2017 issuance of $70 million ten-year, 4.25% fixed-to-floating subordinated notes. Average junior subordinated debentures for the three months ended March 31, 2018 increased $21.4 million compared to the same period in 2017 as the Corporation acquired $21.4 million of floating rate junior subordinated debentures, currently at a 5.45% rate, from the Royal Bank merger.  The volume increase in both sub debt types and rate decrease in the subordinated notes in the first quarter of 2018 resulted in an increase in interest expense on subordinated notes and junior subordinated debentures of $773 thousand and a $288 thousand, respectively, for the three months ended March 31, 2018 as compared to the same period in 2017.
  • The tax-equivalent net interest margin was 3.94% for the three months ended March 31, 2018 as compared to 3.74% for the same period in 2017.  Adjusting for the impact of the accretion of purchase accounting fair value marks, the adjusted tax-equivalent net interest margin was 3.62% and 3.63% for three months ended March 31, 2018 and 2017, respectively.
     
  • Noninterest income for the three months ended March 31, 2018 increased by $6.3 million, to $19.5 million, from the same period in 2017. Increases of $1.0 million, $930 thousand, $666 thousand, and $3.2 million in fees for wealth management services, insurance commissions, capital markets revenues and other operating income, respectively, were recorded. The increase in fees for wealth management services was related to the $1.42 billion increase in wealth assets under management, administration, supervision and brokerage between March 31, 2017 and March 31, 2018. The increase in insurance commissions was primarily related to the May 2017 acquisition of Hirshorn Boothby which expanded our insurance division into the City of Philadelphia. Our Capital Markets group, which began operations in the second quarter of 2017, contributed significantly to our noninterest income totals. The $3.2 million increase in other operating income was primarily related to a $2.3 million recovery of a purchase accounting fair value mark resulting from the pay off, in full, of a purchased credit impaired loan acquired in the Royal Bank merger.
     
  • Noninterest expense for the three months ended March 31, 2018 increased $9.4 million, to $36.0 million, from the same period in 2017. A majority of the increase was related to the additional expenses associated with the staff and facilities assumed in the Royal Bank merger. In addition, the May 2017 acquisition of Hirshorn Boothby and the formation of our Capital Markets group in the second quarter of 2017 contributed to the increase in noninterest expense. Due diligence, merger-related and merger integration expenses also experienced an increase of $3.8 million between the quarters, primarily related to the Royal Bank merger. 
     
  • For the three months ended March 31, 2018, the Provision was $1.0 million, which was an increase of $739 thousand from the same period in 2017. Net charge-offs for the first quarter of 2018 were $893 thousand as compared to $670 thousand for the same period in 2017.

Financial Condition – March 31, 2018 Compared to December 31, 2017

  • Total portfolio loans and leases of $3.31 billion as of March 31, 2018 increased by $19.9 million from December 31, 2017, an annualized increase rate of 2.4%. Increases of $18.1 million, $10.3 million, $7.9 million and $6.0 million in commercial mortgages, consumer loans, commercial and industrial loans and leases, respectively, were offset by decreases of $10.3 million, $6.8 million and $5.2 million in construction loans, home equity loans and lines and residential mortgages, respectively, between the dates.
     
  • The Allowance as of March 31, 2018 was $17.6 million, or 0.53% of portfolio loans and leases, as compared to $17.5 million, or 0.53% of portfolio loans and leases as of December 31, 2017. In addition to the ratio of Allowance to portfolio loans and leases, management also calculates two non-GAAP measures: the Allowance as a percentage of originated loans and leases, which was 0.69% as of March 31, 2018, as compared to 0.70% as of December 31, 2017, and the Allowance plus the remaining loan mark as a percentage of gross loans, which was 1.50% as of March 31, 2018, as compared to 1.58% as of December 31, 2017. 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, 2018 totaled $534.1 million, a decrease of $155.1 million from December 31, 2017. The decrease in available for sale investment securities was primarily related to the maturing, in January 2018, of $200.0 million of short-term U.S. Treasury securities.
     
  • Total assets as of March 31, 2018 were $4.30 billion, a decrease of $149.3 million from December 31, 2017. The decrease in available for sale investment securities described in the previous bullet point accounted for the majority of the decrease.
     
  • Wealth assets under management, administration, supervision and brokerage totaled $13.15 billion as of March 31, 2018, an increase of $178.2 million from December 31, 2017. The increase in wealth assets was comprised of a $191.5 million decrease in account balances whose fees are based on market value, and a $369.7 million increase in fixed rate flat-fee account types.
     
  • Deposits of $3.32 billion as of March 31, 2018 decreased $58.3 million from December 31, 2017. Decreases of $61.7 million and $29.6 million in noninterest-bearing and savings accounts, respectively, were partially offset by a $48.1 million increase in interest-bearing demand accounts.
     
  • Borrowings of $401.4 million as of March 31, 2018, which include short-term borrowings, long-term FHLB advances, subordinated notes and junior subordinated debentures, decreased $95.4 million from December 31, 2017. The decrease was comprised of a $64.1 million decrease in short-term borrowings, and a $31.4 million decrease in long-term FHLB advances.

  • The capital ratios for the Bank and the Corporation, as of March 31, 2018, as shown in the attached tables, indicate levels above the regulatory minimum to be considered "well capitalized." Excluding the Bank's and Corporation's Tier I leverage ratio, all regulatory capital ratios increased from their December 31, 2017 levels primarily as a result of the increase in retained earnings. The Tier I leverage ratio, which is the ratio of Tier I capital to average quarterly assets, for both the Bank and Corporation decreased from December 31, 2017, as the assets acquired in the Royal Bank merger were present for a full quarter.

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, our inability to successfully integrate acquired businesses, the possibility that integration 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, 2018   December 31, 2017   September 30, 2017   June 30, 2017   March 31, 2017  
Consolidated Balance Sheet (selected items)                    
Interest-bearing deposits with banks $   24,589     $   48,367     $   36,870     $   30,806     $   69,978    
Investment securities     550,199         701,744         482,399         452,869         400,360    
Loans held for sale     5,522         3,794         6,327         8,590         3,015    
Portfolio loans and leases     3,305,795         3,285,858         2,677,345         2,666,651         2,555,589    
Allowance for loan and lease losses ("ALLL")     (17,662 )       (17,525 )       (17,004 )       (16,399 )       (17,107 )  
Goodwill and other intangible assets     207,287         205,855         128,534         129,211         124,629    
Total assets     4,300,376         4,449,720         3,476,821         3,438,219         3,292,617    
Deposits - interest-bearing     2,452,421         2,448,954         1,923,567         1,863,288         1,865,009    
Deposits - non-interest-bearing     863,118         924,844         760,614         818,475         771,556    
Short-term borrowings     173,704         237,865         180,874         130,295         23,613    
Long-term FHLB advances and other borrowings     107,784         139,140         134,651         164,681         174,711    
Subordinated notes     98,448         98,416         29,573         29,559         29,546    
Jr. subordinated debentures     21,456         21,416         -         -         -    
Total liabilities     3,767,315         3,921,601         3,074,929         3,043,242         2,904,522    
Total shareholders' equity     533,061         528,119         401,892         394,977         388,095    
                     
Average Balance Sheet (selected items)                    
Interest-bearing deposits with banks $   38,044     $   43,962     $   26,628     $   26,266     $   39,669    
Investment securities     535,471         499,968         462,700         429,400         393,306    
Loans held for sale     2,848         3,966         3,728         3,855         4,238    
Portfolio loans and leases     3,288,364         2,801,289         2,676,589         2,611,755         2,551,439    
Total interest-earning assets     3,864,727         3,349,185         3,169,645         3,071,276         2,988,652    
Goodwill and intangible assets     205,529         142,652         128,917         126,537         124,884    
Total assets     4,246,180         3,640,667         3,441,906         3,333,307         3,244,060    
Deposits - interest-bearing     2,435,491         2,031,170         1,871,494         1,853,660         1,852,194    
Short-term borrowings     172,534         180,650         182,845         98,869         47,603    
Long-term FHLB advances     123,920         134,605         155,918         171,567         182,507    
Subordinated notes     98,430         43,844         29,564         29,550         29,537    
Jr. subordinated debentures     21,430         3,957                
Total interest-bearing liabilities     2,851,805         2,394,226         2,239,821         2,153,646         2,111,841    
Total liabilities     3,719,746         3,213,349         3,044,549         2,943,591         2,861,846    
Total shareholders' equity     526,434         427,318         397,357         389,716         382,214    
                     
Income Statement                    
Net interest income $   37,439     $   30,321     $   29,438     $   27,965     $   27,403    
Provision for loan and lease losses     1,030         1,077         1,333         (83 )       291    
Noninterest income     19,536         15,536         15,584         14,785         13,227    
Noninterest expense     36,030         31,056         28,184         28,495         26,660    
Income tax expense     4,630         19,924         4,766         4,905         4,635    
Net income     15,285         (6,200 )       10,739         9,433         9,044    
Add: Net loss attributable to noncontrolling interest     1         -         -         -         -    
Net income attributable to Bryn Mawr Bank Corporation     15,286         (6,200 )       10,739         9,433         9,044    
Basic earnings per share     0.76         (0.35 )       0.63         0.56         0.53    
Diluted earnings per share     0.75         (0.35 )       0.62         0.55         0.53    
Net income (core) (1)     19,282         11,255         11,245         10,236         9,375    
Basic earnings per share (core) (1)     0.95         0.64         0.66         0.60         0.55    
Diluted earnings per share (core) (1)     0.94         0.63         0.65         0.59         0.55    
Cash dividends paid per share     0.22         0.22         0.22         0.21         0.21    
Profitability Indicators                    
Return on average assets   1.46 %     -0.68 %     1.24 %     1.14 %     1.13 %  
Return on average equity   11.78 %     -5.75 %     10.72 %     9.71 %     9.60 %  
Return on tangible equity(1)   20.20 %     -8.03 %     16.52 %     15.06 %     14.96 %  
Return on tangible equity (core)(1)   25.25 %     16.30 %     17.27 %     16.28 %     15.48 %  
Return on average assets (core)(1)   1.84 %     1.23 %     1.30 %     1.23 %     1.17 %  
Return on average equity (core)(1)   14.85 %     10.45 %     11.23 %     10.53 %     9.95 %  
Tax-equivalent net interest margin   3.94 %     3.62 %     3.71 %     3.68 %     3.74 %  
Efficiency ratio(1)   54.12 %     58.64 %     59.30 %     62.16 %     62.66 %  
Share Data                    
Closing share price $   43.95     $   44.20     $   43.80     $   42.50     $   39.50    
Book value per common share $   26.35     $   26.19     $   23.57     $   23.25     $   22.87    
Tangible book value per common share $   16.10     $   15.98     $   16.03     $   15.64     $   15.53    
Price / book value   166.79 %     168.74 %     185.82 %     182.81 %     172.71 %  
Price / tangible book value   272.92 %     276.52 %     273.19 %     271.69 %     254.41 %  
Weighted average diluted shares outstanding     20,425,256         17,613,634         17,253,982         17,232,767         17,182,689    
Shares outstanding, end of period     20,229,896         20,161,395         17,050,151         16,989,849         16,969,451    
Wealth Management Information:                    
Wealth assets under mgmt, administration, supervision and brokerage (2) $   13,146,926     $   12,968,738     $   12,431,370     $   12,050,555     $   11,725,460    
Fees for wealth management services $   10,308     $   9,974     $   9,651     $   9,807     $   9,303    
Capital Ratios                    
Bryn Mawr Trust Company                    
Tier I capital to risk weighted assets ("RWA") (3)   11.33 %     11.10 %     10.78 %     10.29 %     10.58 %  
Total  capital to RWA (3)   11.85 %     11.65 %     11.42 %     10.90 %     11.25 %  
Tier I leverage ratio (3)   9.39 %     10.76 %     8.79 %     8.76 %     8.83 %  
Tangible equity ratio (1)(3)   9.19 %     8.67 %     8.46 %     8.24 %     8.46 %  
Common equity Tier I capital to RWA (3)   11.33 %     11.10 %     10.78 %     10.29 %     10.58 %  
                     
Bryn Mawr Bank Corporation                    
Tier I capital to RWA (3)   10.66 %     10.42 %     10.50 %     10.10 %     10.50 %  
Total capital to RWA (3)   14.17 %     13.92 %     12.23 %     11.79 %     12.30 %  
Tier I leverage ratio (3)   8.71 %     10.10 %     8.53 %     8.63 %     8.77 %  
Tangible equity ratio (1)(3)   7.98 %     7.61 %     8.16 %     8.03 %     8.32 %  
Common equity Tier I capital to RWA (3)   10.03 %     9.87 %     10.50 %     10.10 %     10.50 %  
                     
Asset Quality Indicators                    
                     
Net loan and lease charge-offs ("NCO"s) $   893     $   556     $   728     $   625     $   670    
Nonperforming loans and leases ("NPL"s) $   7,533     $   8,579     $   4,472     $   7,237     $   7,329    
Other real estate owned ("OREO")     300         304         865         1,122         978    
Total nonperforming assets ("NPA"s) $    7,833     $    8,883     $    5,337     $    8,359     $    8,307    
                     
Nonperforming loans and leases 30 or more days past due $   5,775     $   6,983     $   2,337     $   4,076     $   5,097    
Performing loans and leases 30 to 89 days past due     6,547         7,958         4,558         6,258         6,077    
Performing loans and leases 90 or more days past due     -         -         -         -         -    
Total delinquent loans and leases $    12,322     $    14,941     $    6,895     $    10,334     $    11,174    
                     
Delinquent loans and leases to total loans and leases   0.37 %     0.45 %     0.26 %     0.39 %     0.44 %  
Delinquent performing loans and leases to total loans and leases   0.20 %     0.24 %     0.17 %     0.23 %     0.24 %  
NCOs / average loans and leases (annualized)   0.11 %     0.08 %     0.11 %     0.10 %     0.11 %  
NPLs / total portfolio loans and leases   0.23 %     0.26 %     0.17 %     0.27 %     0.29 %  
NPAs / total loans and leases and OREO   0.24 %     0.27 %     0.20 %     0.31 %     0.32 %  
NPAs / total assets   0.18 %     0.20 %     0.15 %     0.24 %     0.25 %  
ALLL / NPLs   234.46 %     204.28 %     380.23 %     226.60 %     233.42 %  
ALLL / portfolio loans   0.53 %     0.53 %     0.64 %     0.61 %     0.67 %  
ALLL on originated loans and leases / Originated loans and leases (1)   0.69 %     0.70 %     0.70 %     0.68 %     0.75 %  
(Total Allowance + Loan mark) / Total Gross portfolio loans and leases (1)   1.50 %     1.58 %     1.01 %     1.03 %     1.12 %  
                     
Troubled debt restructurings ("TDR"s) included in NPLs $   1,125     $   3,289     $   2,033     $   2,470     $   2,681    
TDRs in compliance with modified terms     5,235         5,800         6,597         6,148         6,492    
Total TDRs $    6,360     $    9,089     $    8,630     $    8,618     $    9,173    
                     
(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.                  
(3)Capital Ratios for the current quarter are to be considered preliminary until the Call Reports are filed.                  
                     

 

                     
Bryn Mawr Bank Corporation                    
Detailed Balance Sheets (unaudited)                    
(dollars in thousands)                    
                     
  March 31, 2018   December 31, 2017   September 30, 2017   June 30, 2017   March 31, 2017  
Assets                    
Cash and due from banks $   7,804     $   11,657     $   8,682     $   19,352     $   17,457    
Interest-bearing deposits with banks     24,589         48,367         36,870         30,806         69,978    
  Cash and cash equivalents     32,393         60,024         45,552         50,158         87,435    
Investment securities, available for sale     534,103         689,202         471,721         443,687         391,028    
Investment securities, held to maturity     7,885         7,932         6,255         5,161         5,194    
Investment securities, trading     8,211         4,610         4,423         4,021         4,138    
Loans held for sale     5,522         3,794         6,327         8,590         3,015    
Portfolio loans and leases, originated     2,564,825         2,487,296         2,433,054         2,409,964         2,286,814    
Portfolio loans and leases, acquired     740,970         798,562         244,291         256,687         268,775    
  Total portfolio loans and leases     3,305,795         3,285,858         2,677,345         2,666,651         2,555,589    
Less: Allowance for losses on originated loan and leases     (17,570 )       (17,475 )       (16,957 )       (16,374 )       (17,069 )  
Less: Allowance for losses on acquired loan and leases     (92 )       (50 )       (47 )       (25 )       (38 )  
  Total allowance for loan and lease losses     (17,662 )       (17,525 )       (17,004 )       (16,399 )       (17,107 )  
  Net portfolio loans and leases     3,288,133         3,268,333         2,660,341         2,650,252         2,538,482    
Premises and equipment     54,986         54,458         44,544         44,446         40,515    
Accrued interest receivable     12,521         14,246         9,287         8,717         8,392    
Mortgage servicing rights     5,706         5,861         5,732         5,683         5,686    
Bank owned life insurance     56,946         56,667         39,881         39,680         39,479    
Federal Home Loan Bank ("FHLB") stock     15,499         20,083         16,248         15,168         8,505    
Goodwill     182,200         179,889         107,127         107,127         104,765    
Intangible assets     25,087         25,966         21,407         22,084         19,864    
Other investments     11,720         12,470         8,941         8,682         8,716    
Other assets     59,464         46,185         29,035         24,763         27,403    
  Total assets $   4,300,376     $   4,449,720     $   3,476,821     $   3,438,219     $   3,292,617    
                     
Liabilities                    
Deposits                    
  Noninterest-bearing $   863,118     $   924,844     $   760,614     $   818,475     $   771,556    
  Interest-bearing     2,452,421         2,448,954         1,923,567         1,863,288         1,865,009    
  Total deposits     3,315,539         3,373,798         2,684,181         2,681,763         2,636,565    
Short-term borrowings     173,704         237,865         180,874         130,295         23,613    
Long-term FHLB advances     107,784         139,140         134,651         164,681         174,711    
Subordinated notes     98,448         98,416         29,573         29,559         29,546    
Jr. subordinated debentures     21,456         21,416         -         -         -    
Accrued interest payable     4,814         3,527         2,267         2,830         2,722    
Other liabilities     45,570         47,439         43,383         34,114         37,365    
  Total liabilities     3,767,315         3,921,601         3,074,929         3,043,242         2,904,522    
                     
Shareholders' equity                    
Common stock     24,439         24,360         21,248         21,162         21,141    
Paid-in capital in excess of par value     371,319         371,486         235,412         234,654         233,910    
Less: common stock held in treasury, at cost     (68,787 )       (68,179 )       (68,134 )       (67,091 )       (66,969 )  
Accumulated other comprehensive (loss) income, net of tax     (9,664 )       (4,414 )       (1,400 )       (1,564 )       (1,990 )  
Retained earnings     216,438         205,549         214,766         207,816         202,003    
  Total Bryn Mawr Bank Corporation shareholders' equity     533,745         528,802         401,892         394,977         388,095    
Noncontrolling interest     (684 )       (683 )       -         -         -    
  Total shareholders' equity     533,061         528,119         401,892         394,977         388,095    
  Total liabilities and shareholders' equity $   4,300,376     $   4,449,720     $   3,476,821     $   3,438,219     $   3,292,617    
                     

 

Bryn Mawr Bank Corporation                    
Supplemental Balance Sheet Information (unaudited)                    
(dollars in thousands)                    
  Portfolio Loans and Leases as of  
  March 31, 2018   December 31, 2017   September 30, 2017   June 30, 2017   March 31, 2017  
Commercial mortgages $   1,541,457     $   1,523,376     $   1,224,571     $   1,197,936     $   1,137,870    
Home equity loans and lines     211,469         218,275         206,974         208,480         203,962    
Residential mortgages     453,655         458,886         422,524         416,488         418,264    
Construction     202,168         212,454         133,505         156,581         145,699    
  Total real estate loans     2,408,749         2,412,991         1,987,574         1,979,485         1,905,795    
Commercial & Industrial     727,231         719,312         597,595         599,203         567,917    
Consumer     48,423         38,153         31,306         28,485         23,932    
Leases     121,392         115,401         60,870         59,478         57,945    
  Total non-real estate loans and leases     897,046         872,866         689,771         687,166         649,794    
  Total portfolio loans and leases $   3,305,795     $   3,285,857     $   2,677,345     $   2,666,651     $   2,555,589    
                     
                     
  Nonperforming Loans and Leases as of  
  March 31, 2018   December 31, 2017   September 30, 2017   June 30, 2017   March 31, 2017  
Commercial mortgages $   138     $   872     $   193     $   818     $   315    
Home equity loans and lines     1,949         1,481         613         1,535         1,828    
Residential mortgages     2,603         4,417         1,589         2,589         2,640    
Construction     -         -         -         -         -    
  Total nonperforming real estate loans     4,690         6,770         2,395         4,942         4,783    
Commercial & Industrial     2,499         1,706         1,977         2,112         2,471    
Consumer     -         -         -         10         -    
Leases     344         103         100         173         75    
  Total nonperforming non-real estate loans and leases     2,843         1,809         2,077         2,295         2,546    
  Total nonperforming portfolio loans and leases $   7,533     $   8,579     $   4,472     $   7,237     $   7,329    
                     
                     
  Net Loan and Lease Charge-Offs (Recoveries) for the Three Months Ended  
  March 31, 2018   December 31, 2017   September 30, 2017   June 30, 2017   March 31, 2017  
Commercial mortgage $   (3 )   $   51     $   (3 )   $   (3 )   $   (3 )  
Home equity loans and lines     25         (5 )       69         169         438    
Residential     -         88         3         43         27    
Construction     (1 )       (1 )       (1 )       (1 )       (1 )  
  Total net charge-offs of real estate loans     21         133         68         208         461    
Commercial & Industrial     283         125         298         185         59    
Consumer     48         55         36         16         39    
Leases     541         243         326         216         111    
  Total net charge-offs of non-real estate loans and leases     872         423         660         417         209    
  Total net charge-offs $   893     $   556     $   728     $   625     $   670    
                     

 

Bryn Mawr Bank Corporation                        
Supplemental Balance Sheet Information (unaudited)                        
(dollars in thousands)                        
  Investment Securities Available for Sale, at Fair Value      
  March 31, 2018   December 31, 2017   September 30, 2017   June 30, 2017   March 31, 2017      
U.S. Treasury securities  $   100     $   200,088     $   100     $   100     $   100        
Obligations of the U.S. Government and agencies      175,107         151,044         142,711         126,468         100,476        
State & political subdivisions - tax-free     19,746         21,138         23,556         26,958         30,416        
State & political subdivisions - taxable     171         172         524         524         524        
Mortgage-backed securities     303,902         274,990         260,680         230,617         197,420        
Collateralized mortgage obligations     33,980         36,662         39,595         42,549         45,476        
Other debt securities     1,097         1,599         1,100         1,099         1,299        
Bond mutual funds     -         -         -         11,956         11,920        
Other investments     -         3,509         3,455         3,416         3,397        
  Total investment securities available for sale, at fair value $   534,103     $   689,202     $   471,721     $   443,687     $   391,028        
                         
                         
  Unrealized Gain (Loss) on Investment Securities Available for Sale      
  March 31, 2018   December 31, 2017   September 30, 2017   June 30, 2017   March 31, 2017      
U.S. Treasury securities  $   -     $   11     $   -     $   -     $   -        
Obligations of the U.S. Government and agencies      (3,756 )       (1,984 )       (920 )       (699 )       (803 )      
State & political subdivisions - tax-free     (74 )       (42 )       23         11         (10 )      
State & political subdivisions - taxable     (1 )       -         1         1         1        
Mortgage-backed securities     (5,169 )       (968 )       869         480         196        
Collateralized mortgage obligations     (1,322 )       (934 )       (640 )       (662 )       (777 )      
Other debt securities     (3 )       (1 )       -         (1 )       (1 )      
Bond mutual funds     -         -         -         -         (36 )      
Other investments     -         296         230         203         132        
  Total unrealized (losses) gains on investment securities available for sale $   (10,325 )   $   (3,622 )   $   (437 )   $   (667 )   $   (1,298 )      
                         
                         
  Deposits      
  March 31, 2018   December 31, 2017   September 30, 2017   June 30, 2017   March 31, 2017      
Interest-bearing deposits:                        
  Interest-bearing demand $   529,478     $   481,336     $   395,383     $   381,345     $   395,131        
  Money market     856,072         862,639         720,613         729,859         757,071        
  Savings     308,925         338,572         264,273         254,903         255,791        
  Retail time deposits      523,138         532,202         316,068         321,982         319,381        
  Wholesale non-maturity deposits     63,449         62,276         48,620         54,675         69,471        
  Wholesale time deposits     171,359         171,929         178,610         120,524         68,164        
  Total interest-bearing deposits     2,452,421         2,448,954         1,923,567         1,863,288         1,865,009        
  Noninterest-bearing deposits     863,118         924,844         760,614         818,475         771,556        
  Total deposits $   3,315,539     $   3,373,798     $   2,684,181     $   2,681,763     $   2,636,565        
                         

 

                     
Bryn Mawr Bank Corporation                    
Detailed Income Statements (unaudited)                    
(dollars in thousands, except per share data)                    
  For the Three Months Ended  
  March 31, 2018   December 31, 2017   September 30, 2017   June 30, 2017   March 31, 2017  
Interest income:                    
Interest and fees on loans and leases $   40,689     $   32,245     $   30,892     $   29,143     $   28,482    
Interest on cash and cash equivalents     53         37         36         35         66    
Interest on investment securities     2,792         2,516         2,270         2,059         1,778    
  Total interest income     43,534         34,798         33,198         31,237         30,326    
Interest expense:                    
Interest on deposits     3,472         2,739         2,198         1,983         1,828    
Interest on short-term borrowings     630         579         547         237         27    
Interest on FHLB advances and other borrowings     562         595         645         682         698    
Interest on jr. subordinated debentures     288         46         -         -         -    
Interest on subordinated notes     1,143         518         370         370         370    
Total interest expense     6,095         4,477         3,760         3,272         2,923    
  Net interest income     37,439         30,321         29,438         27,965         27,403    
Provision for loan and lease losses (the "Provision")     1,030         1,077         1,333         (83 )       291    
  Net interest income after Provision     36,409         29,244         28,105         28,048         27,112    
Noninterest income:                    
Fees for wealth management services      10,308         9,974         9,651         9,807         9,303    
Insurance revenue     1,693         1,510         1,373         943         763    
Capital markets revenue     666         600         843         953         -    
Service charges on deposits     713         655         676         630         647    
Loan servicing and other fees     686         536         548         519         503    
Net gain on sale of loans     518         493         799         520         629    
Net gain on sale of investment securities available for sale     7         28         72         -         1    
Net gain (loss) on sale of other real estate owned     176         (92 )       -         (12 )       -    
Dividends on FHLB and FRB stocks     431         290         217         218         214    
Other operating income     4,338         1,542         1,405         1,207         1,167    
  Total noninterest income     19,536         15,536         15,584         14,785         13,227    
Noninterest expense:                    
Salaries and wages      15,982         13,619         13,602         13,580         12,450    
Employee benefits      3,708         2,717         2,560         2,404         2,489    
Occupancy and bank premises     3,050         2,648         2,485         2,247         2,526    
Furniture, fixtures and equipment     1,898         1,816         1,726         1,869         1,974    
Advertising     461         386         277         405         386    
Amortization of intangible assets     879         677         677         687         693    
(Recovery) impairment of mortgage servicing rights ("MSRs")     (50 )       (94 )       3         43         3    
Due diligence, merger-related and merger integration expenses     4,319         3,507         850         1,236         511    
Professional fees     748         769         739         1,049         711    
Pennsylvania bank shares tax     473         16         317         297         664    
Information technology     1,195         1,006         880         821         874    
Other operating expenses      3,367         3,989         4,068         3,857         3,379    
  Total noninterest expense     36,030         31,056         28,184         28,495         26,660    
Income before income taxes     19,915         13,724         15,505         14,338         13,679    
Income tax expense     4,630         19,924         4,766         4,905         4,635    
  Net income $   15,285     $   (6,200 )   $   10,739     $   9,433     $   9,044    
Add: Net loss attributable to noncontrolling interest     1         -         -         -         -    
  Net income attributable to Bryn Mawr Bank Corporation $   15,286     $   (6,200 )   $   10,739     $   9,433     $   9,044    
                     
Per share data:                    
Weighted average shares outstanding     20,202,969         17,632,697         17,023,046         16,984,563         16,954,132    
Dilutive common shares     222,287         -         230,936         248,204         228,557    
Weighted average diluted shares      20,425,256         17,613,634         17,253,982         17,232,767         17,182,689    
Basic earnings (loss) per common share $   0.76     $   (0.35 )   $   0.63     $   0.56     $   0.53    
Diluted earnings (loss) per common share $   0.75     $   (0.35 )   $   0.62     $   0.55     $   0.53    
Dividend declared per share $   0.22     $   0.22     $   0.22     $   0.21     $   0.21    
Effective tax rate   23.25 %     145.18 %     30.74 %     34.21 %     33.88 %  
                     
                     

 

Bryn Mawr Bank Corporation     
Tax-Equivalent Net Interest Margin (unaudited)                 
(dollars in thousands, except per share data)
 
   
    For The Three Months Ended  
    March 31, 2018 December 31, 2017 September 30, 2017 June 30, 2017 March 31, 2017  
(dollars in thousands)   Average Balance Interest Income/ Expense Average Rates Earned/ Paid Average Balance Interest Income/ Expense Average Rates Earned/ Paid Average Balance Interest Income/ Expense Average Rates Earned/ Paid Average Balance Interest Income/ Expense Average Rates Earned/ Paid Average Balance Interest Income/ Expense Average Rates Earned/ Paid  
                                   
Assets:                                  
Interest-bearing deposits with other banks   $   38,044   $   53   0.56 % $   43,962   $   37   0.33 % $   26,628   $   36   0.54 % $   26,266   $   35   0.53 % $   39,669   $   66   0.67 %  
Investment securities - available for sale:                                  
  Taxable       498,718       2,675   2.18 %     465,393       2,394   2.04 %     427,106       2,160   2.01 %     391,112       1,940   1.99 %     354,229       1,653   1.89 %  
  Tax-exempt       20,501       100   1.98 %     22,640       127   2.23 %     25,268       134   2.10 %     28,970       150   2.08 %     31,485       164   2.11 %  
  Total investment securities - available for sale        519,219       2,775   2.17 %     488,033       2,521   2.05 %     452,374       2,294   2.01 %     420,082       2,090   2.00 %     385,714       1,817   1.91 %  
                                   
Investment securities  - held to maturity       7,913       12   0.62 %     7,510       11   0.58 %     6,044       11   0.72 %     5,181       5   0.39 %     3,702       7   0.77 %  
Investment securities  - trading       8,339       21   1.02 %     4,425       25   2.24 %     4,282       8   0.74 %     4,137       13   1.26 %     3,890       8   0.83 %  
                                   
Loans and leases *       3,291,212       40,754   5.02 %     2,805,255       32,403   4.58 %     2,680,317       31,058   4.60 %     2,615,610       29,309   4.49 %     2,555,677       28,622   4.54 %  
                                   
  Total interest-earning assets        3,864,727       43,615   4.58 %     3,349,185       34,997   4.15 %     3,169,645       33,407   4.18 %     3,071,276       31,452   4.11 %     2,988,652       30,520   4.14 %  
                                   
Cash and due from banks       10,698           6,855           15,709           15,727           14,942        
Less: allowance for loan and lease losses       (17,628 )         (17,046 )         (16,564 )         (17,549 )         (17,580 )      
Other assets        388,383           301,673           273,116           263,853           258,046        
                                   
  Total assets   $   4,246,180       $   3,640,667       $   3,441,906       $   3,333,307       $   3,244,060        
                                   
Liabilities:                                  
                                   
Interest-bearing deposits:                                  
  Savings, NOW and market rate deposits   $   1,676,733   $   1,479   0.36 % $   1,410,461   $   897   0.25 % $   1,359,293   $   823   0.24 % $   1,375,949   $   813   0.24 % $   1,388,561   $   756   0.22 %  
  Wholesale deposits       231,289       733   1.29 %     262,643       822   1.24 %     190,849       548   1.14 %     154,424       378   0.98 %     143,461       317   0.90 %  
  Retail time deposits        527,469       1,260   0.97 %     358,066       1,020   1.13 %     321,352       827   1.02 %     323,287       792   0.98 %     320,172       755   0.96 %  
  Total interest-bearing deposits       2,435,491       3,472   0.58 %     2,031,170       2,739   0.53 %     1,871,494       2,198   0.47 %     1,853,660       1,983   0.43 %     1,852,194       1,828   0.40 %  
                                   
Borrowings:                                  
Short-term borrowings       172,534       630   1.48 %     180,650       579   1.27 %     182,845       547   1.19 %     98,869       237   0.96 %     47,603       27   0.23 %  
Long-term FHLB advances       123,920       562   1.84 %     134,605       595   1.75 %     155,918       645   1.64 %     171,567       682   1.59 %     182,507       698   1.55 %  
Jr. subordinated debt       21,430       288   5.45 %     3,957       46   4.61 %     -       -         -       -         -       -      
Subordinated notes       98,430       1,143   4.71 %     43,844       518   4.69 %     29,564       370   4.97 %     29,550       370   5.02 %     29,537       370   5.08 %  
  Total borrowings       416,314       2,623   2.56 %     363,056       1,738   1.90 %     368,327       1,562   1.68 %     299,986       1,289   1.72 %     259,647       1,095   1.71 %  
                                   
  Total interest-bearing liabilities       2,851,805       6,095   0.87 %     2,394,226       4,477   0.74 %     2,239,821       3,760   0.67 %     2,153,646       3,272   0.61 %     2,111,841       2,923   0.56 %  
                                   
Noninterest-bearing deposits       835,476           771,519           764,562           755,597           711,794        
Other liabilities       32,465           47,604           40,166           34,348           38,211        
  Total noninterest-bearing liabilities       867,941           819,123           804,728           789,945           750,005        
                                   
  Total liabilities       3,719,746           3,213,349           3,044,549           2,943,591           2,861,846        
                                   
Shareholders' equity        526,434           427,318           397,357           389,716           382,214        
                                   
  Total liabilities and shareholders' equity    $   4,246,180       $   3,640,667       $   3,441,906       $   3,333,307       $   3,244,060        
                                   
Net interest spread       3.71 %     3.41 %     3.51 %     3.50 %     3.58 %  
Effect of noninterest-bearing sources       0.23 %     0.21 %     0.20 %     0.18 %     0.16 %  
                                   
Tax-equivalent net interest margin      $   37,520   3.94 %   $   30,520   3.62 %   $   29,647   3.71 %   $   28,180   3.68 %   $   27,597   3.74 %  
                                   
Tax-equivalent adjustment      $    81   0.01 %   $    199   0.02 %   $    209   0.03 %   $    215   0.03 %   $    194   0.02 %  
                                   
Supplemental Information Regarding Accretion of Fair Value Marks                              
     Interest   Increase (Decrease)  Effect on Yield or Rate    Increase (Decrease)  Effect on Yield or Rate    Increase (Decrease)  Effect on Yield or Rate    Increase (Decrease)  Effect on Yield or Rate    Increase (Decrease)  Effect on Yield or Rate  
Loans and leases   Income $   2,702   0.33 %   $   276   0.04 %   $   708   0.10 %   $   402   0.06 %   $   726   0.12 %  
Retail time deposits   Expense     (380 ) -0.29 %       (13 ) -0.01 %       (15 ) -0.02 %       (18 ) -0.02 %       (19 ) -0.02 %  
Long-term FHLB advances and other borrowings   Expense     15   0.05 %       (31 ) -0.09 %       (30 ) -0.08 %       (30 ) -0.07 %       (30 ) -0.07 %  
Jr. subordinated debt   Expense     40   0.76 %       -   0.00 %       -   0.00 %       -   0.00 %       -   0.00 %  
Net interest income from fair value marks     $    3,027       $    320       $    753       $    450       $    775      
Purchase accounting effect on tax-equivalent margin     0.32 %     0.04 %     0.09 %     0.06 %     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                      
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, 2018   December 31, 2017   September 30, 2017   June 30, 2017   March 31, 2017    
Reconciliation of Net Income to Net Income (core):                      
Net income (a GAAP measure) $   15,286     $   (6,200 )   $   10,739     $   9,433     $   9,044      
Less: Tax-effected non-core noninterest income:                      
  (Gain) loss on sale of investment securities available for sale     (6 )       (18 )       (47 )       -         (1 )    
Add: Tax-effected non-core noninterest expense items:                      
  Due diligence, merger-related and merger integration  expenses     3,412         2,280         553         803         332      
Add: Federal income tax expense related to re-measurement of net deferred tax asset due to tax reform legislation.     590         15,193         -         -         -      
Net income (core) (a non-GAAP measure) $    19,282     $    11,255     $    11,245     $    10,236     $    9,375      
                       
Calculation of Basic and Diluted Earnings per Common Share (core):                    
Weighted average common shares outstanding     20,202,969         17,632,697         17,023,046         16,984,563         16,954,132      
Dilutive common shares     222,287         211,975         230,936         248,204         228,557      
Weighted average diluted shares      20,425,256         17,844,672         17,253,982         17,232,767         17,182,689      
Basic earnings per common share (core) (a non-GAAP measure) $   0.95     $   0.64     $   0.66     $   0.60     $   0.55      
Diluted earnings per common share (core) (a non-GAAP measure) $   0.94     $   0.63     $   0.65     $   0.59     $   0.55      
                       
Calculation of Return on Average Tangible Equity:                      
Net income (loss) $   15,286     $   (6,200 )   $   10,739     $   9,433     $   9,044      
Add: Tax-effected amortization and impairment of intangible assets     694         440         440         447         450      
Net tangible income (numerator) $   15,980     $   (5,760 )   $   11,179     $   9,880     $   9,494      
                       
Average shareholders' equity $   526,434     $   427,318     $   397,357     $   389,716     $   382,214      
Less: Average goodwill and intangible assets     (205,529 )       (142,652 )       (128,917 )       (126,537 )       (124,884 )    
Net average tangible equity (denominator) $   320,905     $   284,666     $   268,440     $   263,179     $   257,330      
                       
Return on tangible equity (a non-GAAP measure)   20.20 %     -8.03 %     16.52 %     15.06 %     14.96 %    
                       
Calculation of Return on Average Tangible Equity (core):                      
Net income (core) (a non-GAAP measure) $   19,282     $   11,255     $   11,245     $   10,236     $   9,375      
Add: Tax-effected amortization and impairment of intangible assets     694         440         440         447         450      
Net tangible income (core) (numerator) $   19,976     $   11,695     $   11,685     $   10,683     $   9,825      
                       
Average shareholders' equity $   526,434     $   427,318     $   397,357     $   389,716     $   382,214      
Less: Average goodwill and intangible assets     (205,529 )       (142,652 )       (128,917 )       (126,537 )       (124,884 )    
Net average tangible equity (denominator) $   320,905     $   284,666     $   268,440     $   263,179     $   257,330      
                       
Return on tangible equity (core) (a non-GAAP measure)   25.25 %     16.30 %     17.27 %     16.28 %     15.48 %    
                       
Calculation of Tangible Equity Ratio:                      
Total shareholders' equity $   533,061     $   528,119     $   401,892     $   394,977     $   388,095      
Less: Goodwill and intangible assets     (207,287 )       (205,855 )       (128,534 )       (129,211 )       (124,629 )    
Net tangible equity (numerator) $   325,774     $   322,264     $   273,358     $   265,766     $   263,466      
                       
Total assets $   4,300,376     $   4,449,720     $   3,476,821     $   3,438,219     $   3,292,617      
Less: Goodwill and intangible assets     (207,287 )       (205,855 )       (128,534 )       (129,211 )       (124,629 )    
Tangible assets (denominator) $   4,093,089     $   4,243,865     $   3,348,287     $   3,309,008     $   3,167,988      
                       
Tangible equity ratio   7.96 %     7.59 %     8.16 %     8.03 %     8.32 %    
                       
Calculation of Return on Average Assets (core)                      
Return on average assets (GAAP)   1.46 %     -0.68 %     1.18 %     1.09 %     1.10 %    
Effect of adjustment to GAAP net income to core net income   0.38 %     1.90 %     0.04 %     0.11 %     0.04 %    
Return on average assets (core)   1.84 %     1.23 %     1.23 %     1.19 %     1.14 %    
                       
Calculation of Return on Average Equity (core)                      
Return on average equity (GAAP)   11.78 %     -5.76 %     10.72 %     9.60 %     9.39 %    
Effect of adjustment to GAAP net income to core net income   3.08 %     16.21 %     0.51 %     0.93 %     0.56 %    
Return on average equity (core)   14.85 %     10.45 %     11.23 %     10.53 %     9.95 %    
                       
Calculation of Efficiency Ratio:                      
Noninterest expense $   36,030     $   31,056     $   28,184     $   28,495     $   26,660      
Less: certain noninterest expense items*:                      
  Amortization of intangibles     (879 )       (677 )       (677 )       (687 )       (693 )    
  Due diligence, merger-related and merger integration  expenses     (4,319 )       (3,507 )       (850 )       (1,236 )       (511 )    
Noninterest expense (adjusted) (numerator) $   30,832     $   26,872     $   26,657     $   26,572     $   25,456      
                       
Noninterest income $   19,536     $   15,536     $   15,584     $   14,785     $   13,227      
Less: non-core noninterest income items:                      
  Loss (gain) on sale of investment securities available for sale     (8 )       (28 )       (72 )       -         (2 )    
Noninterest income (core) $   19,528     $   15,508     $   15,512     $   14,785     $   13,225      
Net interest income     37,439         30,321         29,438         27,965         27,403      
Noninterest income (core) and net interest income (denominator) $   56,967     $   45,829     $   44,950     $   42,750     $   40,628      
                       
Efficiency ratio   54.12 %     58.64 %     59.30 %     62.16 %     62.66 %    
* 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 $   17,662     $   17,525     $   17,004     $   16,399     $   17,107      
Less: Allowance on acquired loans     92         50         47         25         38      
Allowance on originated loans and leases $   17,570     $   17,475     $   16,957     $   16,374     $   17,069      
                       
Total Allowance $   17,662     $   17,525     $   17,004     $   16,399     $   17,107      
Loan mark on acquired loans     32,260         34,790         10,223         11,084         11,544      
Total Allowance + Loan mark $   49,922     $   52,315     $   27,227     $   27,483     $   28,651      
                       
Total Portfolio loans and leases $   3,305,795     $   3,285,858     $   2,677,345     $   2,666,651     $   2,555,589      
Less: Originated loans and leases     2,564,825         2,487,296         2,433,054         2,409,964         2,286,814      
Net acquired loans $   740,970     $   798,562     $   244,291     $   256,687     $   268,775      
Add: Loan mark on acquired loans     32,260         34,790         10,223         11,084         11,544      
Gross acquired loans (excludes loan mark) $   773,230     $   833,352     $   254,514     $   267,771     $   280,319      
Originated loans and leases     2,564,825         2,487,296         2,433,054         2,409,964         2,286,814      
Total Gross portfolio loans and leases $   3,338,055     $   3,320,648     $   2,687,568     $   2,677,735     $   2,567,133      
                       


FOR MORE INFORMATION CONTACT:             
Frank Leto, President, CEO
610-581-4730
Mike Harrington, CFO
610-526-2466

 

 

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