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

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

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

 

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

 

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

 

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

 

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

 

                                   
Bryn Mawr Bank Corporation                                  
Tax-Equivalent Net Interest Margin (unaudited)                              
(dollars in thousands, except per share data)                                
    For The Three Months Ended  
    March 31, 2016 December 31, 2015 September 30, 2015 June 30, 2015 March 31, 2015  
(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   $   39,050   $   46       0.47 % $   90,832   $   63       0.28 % $   165,723   $   107       0.26 % $   182,099   $   124     0.27 % $   206,694   $   115       0.23 %  
Investment securities – available for sale:                                  
Taxable     316,353       1,397       1.78 %   307,524     1,432       1.85 %   310,582     1,172       1.50 %   310,011     1,184     1.53 %   335,208     1,336       1.62 %  
Tax-exempt     40,658       191       1.89 %   43,144     195       1.79 %   41,424     186       1.78 %   37,035     157     1.70 %   35,085     203       2.35 %  
Total investment   securities – available for   sale     357,011     1,588       1.79 %   350,668     1,627       1.84 %   352,006     1,358       1.53 %   347,046     1,341     1.55 %   370,293     1,539       1.69 %  
                                   
Investment securities  – trading     3,946     2       0.20 %   3,571     60       6.67 %   4,022     5       0.49 %   4,034     11     1.09 %   3,897     4       0.42 %  
                                   
Loans and leases *     2,308,584     26,778       4.67 %   2,247,720     26,158       4.62 %   2,191,652     25,698       4.65 %   2,118,106     25,623     4.85 %   2,082,882     25,226       4.91 %  
                                   
Total interest-earning assets     2,708,591     28,414       4.22 %   2,692,791     27,908       4.11 %   2,713,403     27,168       3.97 %   2,651,285     27,099     4.10 %   2,663,766     26,884       4.09 %  
                                   
Cash and due from banks       16,501           18,005           17,160           16,222           19,092        
Less: allowance for loan and lease losses     (16,239 )       (16,106 )       (15,066 )       (14,346 )       (14,866 )      
Other assets     264,295         264,321         265,811         257,540         250,164        
                                   
Total assets   $   2,973,148       $   2,959,011       $   2,981,308       $   2,910,701       $   2,918,156        
                                   
Liabilities:                                  
                                   
Interest-bearing deposits:                                  
Savings, NOW and market rate deposits   $   1,279,630   $   569       0.18 % $   1,260,575   $   565       0.18 % $   1,260,529   $   584       0.18 % $   1,224,544   $   575     0.19 % $   1,252,410   $   594       0.19 %  
Wholesale deposits     137,201     233       0.68 %   119,394     186       0.62 %   133,277     203       0.60 %   130,497     195     0.60 %   140,120     188       0.54 %  
Retail time deposits     216,820     274       0.51 %   231,605     295       0.51 %   251,170     289       0.46 %   273,718     292     0.43 %   267,800     246       0.37 %  
Total interest-bearing deposits     1,633,651     1,076       0.26 %   1,611,574     1,046       0.26 %   1,644,976     1,076       0.26 %   1,628,759     1,062     0.26 %   1,660,330     1,028       0.25 %  
                                   
Borrowings:                                  
Short-term borrowings     34,158     17       0.20 %   26,092     9       0.14 %   28,166     8       0.11 %   34,980     10     0.11 %   55,344     21       0.15 %  
Long-term FHLB advances and other borrowings     250,015     908       1.46 %   254,880     912       1.42 %   248,606     881       1.41 %   249,678     851     1.37 %   266,205     910       1.39 %  
Subordinated notes     29,482     366       4.99 %     29,471       370       4.98 %     18,190       231       5.04 %     -       -     0.00 %     -       -       0.00 %  
Total borrowings     313,655     1,291       1.66 %   310,443     1,291       1.65 %   294,962     1,120       1.51 %   284,658     861     1.21 %   321,549     931       1.17 %  
                                   
Total interest-bearing liabilities     1,947,306     2,367       0.49 %   1,922,017     2,337       0.48 %   1,939,938     2,196       0.45 %   1,913,417     1,923     0.40 %   1,981,879     1,959       0.40 %  
                                   
Noninterest-bearing deposits     631,047         634,969         625,547         580,240         534,403        
Other liabilities     33,923         36,665         39,219         37,890         30,935        
Total noninterest-bearing liabilities     664,970         671,634         664,766         618,130         565,338        
                                   
Total liabilities     2,612,276         2,593,651         2,604,704         2,531,547         2,547,217        
                                   
Shareholders’ equity     360,872         365,360         376,604         379,154         370,939        
                                   
Total liabilities and shareholders’ equity   $   2,973,148       $   2,959,011       $   2,981,308       $   2,910,701       $   2,918,156        
                                   
Interest income to earning assets         4.22 %       4.11 %       3.97 %       4.10 %       4.09 %  
                                   
Net interest spread         3.73 %       3.63 %       3.52 %       3.70 %       3.69 %  
Effect of noninterest-bearing sources           0.14 %         0.14 %         0.13 %         0.11 %         0.10 %  
                                         
Tax-equivalent net interest margin     $   26,047       3.87 %   $   25,571       3.77 %   $   24,972       3.65 %   $   25,176     3.81 %   $   24,925       3.79 %  
                                   
Tax-equivalent adjustment     $   145       0.02 %   $   142       0.02 %   $   139       0.02 %   $   106     0.02 %   $   130       0.02 %  
                                   
Supplemental Information Regarding Accretion of Fair Value Marks                              
       Interest Income (Expense) Effect  Effect on Yield or Rate    Interest Income (Expense) Effect  Effect on Yield or Rate    Interest Income (Expense) Effect  Effect on Yield or Rate    Interest Income (Expense) Effect  Effect on Yield or Rate    Interest Income (Expense) Effect  Effect on Yield or Rate  
Loans and leases     $   953       0.17 %   $   707       0.12 %   $   763       0.14 %   $   1,246     0.24 %   $   1,127       0.22 %  
Retail time deposits         (110 )     -0.20 %       (123 )     -0.21 %       (188 )     -0.30 %       (205 )   -0.30 %       (245 )     -0.37 %  
Short-term borrowings         (12 )     -0.14 %       (35 )     -0.53 %       (35 )     -0.49 %       (35 )   -0.40 %       (35 )     -0.26 %  
Long-term FHLB advances and other borrowings         (30 )     -0.05 %       (30 )     -0.05 %       (30 )     -0.05 %       (30 )   -0.05 %       (35 )     -0.05 %  
Net interest income from fair value marks     $   1,105         $   895         $   1,016         $   1,516       $   1,442        
Purchase accounting effect on tax-equivalent margin             0.16 %             0.13 %             0.15 %           0.23 %             0.22 %  
* Average loans and leases include portfolio loans and leases, and loans held for sale. Non-accrual loans are also included in the average loan and leases balances.              
                                   
                                   

 

Bryn Mawr Bank Corporation                  
Appendix – Non-GAAP to GAAP Reconciliations and Calculation of Non-GAAP Performance Measures (unaudited)            
(dollars in thousands, except per share data)                  
                   
Statement on Non-GAAP Measures: The Corporation believes the presentation of the following non-GAAP financial measures provides useful supplemental information that is essential to an investor’s proper understanding of the results of operations and financial condition of the Corporation. Management uses non-GAAP financial measures in its analysis of the Corporation’s performance. These non-GAAP measures should not be viewed as substitutes for the financial measures determined in accordance with GAAP, nor are they necessarily comparable to  non-GAAP performance measures that may be presented by other companies.
                   
  As of or For the Three Months Ended
  March 31, 2016   December 31, 2015   September 30, 2015   June 30, 2015   March 31, 2015
Reconciliation of Net Income to Net Income (core):                  
Net income (loss) (a GAAP measure) $   8,274     $   (6,355 )   $   7,496     $   8,119     $   7,494  
Less: Tax-effected non-core noninterest income:                  
  Loss (gain) on sale of investment securities available for sale     10         (38 )       (39 )       (2 )       (527 )
Add: Tax-effected non-core noninterest expense items:                  
  Loss on pension termination     -         11,295         -         -         -  
  Severance expense (Salaries and wages)     -         142         124         -         -  
  Branch lease termination expense     -         604         -         -         -  
  Debt and swap prepayment penalty (Other operating expenses)     -         397         -         -         339  
  Impairment of intangible assets     -         252         -         -         -  
  Due diligence, merger-related and merger integration  expenses     -         1,209         660         841         1,626  
Net income (core) (a non-GAAP measure) $    8,284     $    7,506     $    8,241     $    8,958     $    8,932  
                   
Calculation of Basic and Diluted Earnings per Common Share (core):                
Weighted average common shares outstanding     16,848,202         17,129,234         17,572,421         17,713,794         17,545,802  
Dilutive common shares     63,617         112,783         261,877         340,869         357,456  
Adjusted weighted average diluted shares      16,911,819         17,242,017         17,834,298         18,054,663         17,903,258  
Basic earnings per common share (core) (a non-GAAP measure) $   0.49     $   0.44     $   0.47     $   0.51     $   0.51  
Diluted earnings per common share (core) (a non-GAAP measure) $   0.49     $   0.44     $   0.46     $   0.50     $   0.50  
                   
Calculation of Return on Average Tangible Equity:                  
Net income (loss) $   8,274     $   (6,355 )   $   7,496     $   8,119     $   7,494  
Add: Tax-effected amortization and impairment of intangible assets     579         861         619         621         638  
Net tangible income (numerator) $   8,853     $   (5,494 )   $   8,115     $   8,740     $   8,132  
                   
Average shareholders’ equity $   360,872     $   365,360     $   376,604     $   379,154     $   370,939  
Less: Average goodwill and intangible assets     (128,296 )       (129,292 )       (130,241 )       (129,116 )       (125,060 )
Net average tangible equity (denominator) $   232,576     $   236,068     $   246,363     $   250,038     $   245,879  
                   
Return on tangible equity (a non-GAAP measure)   15.31 %     -9.23 %     13.07 %     14.02 %     13.41 %
                   
Calculation of Tangible Equity Ratio:                  
Total shareholders’ equity $   365,177     $   365,711     $   368,155     $   381,098     $   377,903  
Less: Goodwill and intangible assets     (127,777 )       (128,668 )       (129,694 )       (130,631 )       (128,141 )
Net tangible equity (numerator) $   237,400     $   237,043     $   238,461     $   250,467     $   249,762  
                   
Total assets $   3,058,247     $   3,030,997     $   2,952,742     $   2,950,014     $   2,943,179  
Less: Goodwill and intangible assets     (127,777 )       (128,668 )       (129,694 )       (130,631 )       (128,141 )
Tangible assets (denominator) $   2,930,470     $   2,902,329     $   2,823,048     $   2,819,383     $   2,815,038  
                   
Tangible equity ratio   8.10 %     8.17 %     8.45 %     8.88 %     8.87 %
                   
Calculation of Efficiency Ratio:                  
Noninterest expense $   25,051     $   46,951     $   25,403     $   25,982     $   27,429  
Less: certain noninterest expense items*:                  
  Loss on pension termination     -         (17,377 )       -         -         -  
  Severance expense (Salaries and wages)     -         (218 )       (191 )       -         -  
  Branch lease termination expense     -         (929 )       -         -         -  
  Debt and swap prepayment penalty (Other operating expenses)     -         (611 )       -         -         (522 )
  Amortization of intangibles     (891 )       (937 )       (953 )       (955 )       (982 )
  Impairment of intangible assets     -         (388 )       -         -         -  
  Due diligence, merger-related and merger integration  expenses     -         (1,860 )       (1,015 )       (1,294 )       (2,501 )
Noninterest expense (adjusted) (numerator) $   24,160     $   24,631     $   23,244     $   23,733     $   23,424  
                   
Noninterest income $   13,208     $   13,668     $   13,350     $   14,177     $   14,765  
Less: non-core noninterest income items:                  
  Loss (gain) on sale of investment securities available for sale     15         (58 )       (60 )       (3 )       (811 )
Noninterest income (core) $   13,223     $   13,610     $   13,290     $   14,174     $   13,954  
Net interest income     25,902         25,429         24,833         25,070         24,795  
Noninterest income (core) and net interest income (denominator) $   39,125     $   39,039     $   38,123     $   39,244     $   38,749  
                   
Efficiency ratio   61.75 %     63.09 %     60.97 %     60.48 %     60.45 %
* In calculating the Corporation’s efficiency ratio, which is used by Management to identify the cost of generating each dollar of core revenue, certain non-core income and expense items as well as the amortization of intangible assets, are excluded.
                   
Supplemental Loan and Allowance Information Used to Calculate Non-GAAP Measures                
                   
Total Allowance $   16,817     $   15,857     $   15,935     $   14,959     $   14,296  
less: Allowance on acquired loans     28         -         35         22         125  
Allowance on originated loans and leases $   16,789     $   15,857     $   15,900     $   14,937     $   14,171  
                   
Total Allowance $   16,789     $   15,857     $   15,935     $   14,959     $   14,296  
Loan mark on acquired loans     15,930         17,108         18,179         19,816         19,708  
Total Allowance + Loan mark $   32,719     $   32,965     $   34,114     $   34,775     $   34,004  
                   
Total Portfolio loans and leases $   2,378,841     $   2,268,988     $   2,228,764     $   2,153,263     $   2,088,532  
less: Originated loans and leases     2,015,683         1,883,869         1,804,835         1,692,041         1,571,377  
Net acquired loans $   363,158     $   385,119     $   423,929     $   461,222     $   517,155  
add: Loan mark on acquired loans     15,930         17,108         18,179         19,816         19,708  
Gross acquired loans (excludes loan mark) $   379,088     $   402,227     $   442,108     $   481,038     $   536,863  
Originated loans and leases     2,015,683         1,883,869         1,804,835         1,692,041         1,571,377  
Total Gross portfolio loans and leases $   2,394,771     $   2,286,096     $   2,246,943     $   2,173,079     $   2,108,240  
                                       
                                       
FOR MORE INFORMATION CONTACT:Frank Leto, President, CEO610-581-4730 Mike Harrington, CFO610-526-2466

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