BRYN MAWR, Pa., Oct. 18, 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 $16.7 million, or $0.82 diluted earnings per share for the three months ended September 30, 2018, as compared to net income of $14.7 million, or $0.72 diluted earnings per share, for the three months ended June 30, 2018, and $10.7 million, or $0.62 diluted earnings per share, for the three months ended September 30, 2017.
On a non-GAAP basis, core net income, which excludes Tax Cuts and Jobs Act (“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 $17.1 million, or $0.84 diluted earnings per share, for the three months ended September 30, 2018, as compared to $17.0 million, or $0.83 diluted earnings per share, for the three months ended June 30, 2018, and $11.2 million, or $0.65 diluted earnings per share, for the three months ended September 30, 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 continued the momentum of our strong first half into the third quarter, posting record quarterly earnings of $16.7 million,” stated Frank Leto, President and Chief Executive Officer.
“We are excited about the continued organic growth of our loan portfolio and assets held under management by our wealth division,” continued Mr. Leto. “We have seen a 10.6% year to date increase in originated loans and are approaching close to $14 billion in assets under management, increasing $509 million from last quarter or over 15% on an annualized basis,” added Mr. Leto, continuing “Such organic growth contributed to our solid results this quarter and leaves us well positioned to close out the fiscal year on a strong note.”
The Board of Directors of the Corporation declared a quarterly dividend of $0.25 per share, payable December 1, 2018 to shareholders of record as of November 1, 2018.
SIGNIFICANT ITEMS OF NOTE
Results of Operations – Third Quarter 2018 Compared to Second Quarter 2018
- Net income for the three months ended September 30, 2018 was $16.7 million, as compared to net income of $14.7 million for the three months ended June 30, 2018. The provision for loan and lease losses (the “Provision”) for the three months ended September 30, 2018 decreased $2.5 million as compared to the second quarter of 2018. Total noninterest income decreased $1.8 million, total noninterest expense decreased $2.2 million, and income tax expense increased $343 thousand for the three months ended September 30, 2018, as compared to the three months ended June 30, 2018.
On a non-GAAP basis, core net income, which excludes 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 $17.1 million, or $0.84 per diluted share, for the three months ended September 30, 2018, as compared to $17.0 million or $0.83 per diluted share, for the three months ended June 30, 2018. 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 three months ended September 30, 2018 was $36.7 million, a decrease of $587 thousand over the linked quarter. The decrease was primarily related to a $1.0 million increase in interest expense on deposits, partially offset by a $414 thousand increase on interest and fees on loans and leases for the three months ended September 30, 2018 as compared to the linked quarter ended June 30, 2018.
- Tax-equivalent net interest income for the three months ended September 30, 2018 was $36.9 million, a decrease of $572 thousand over the linked quarter. Excluding the effect of the accretion of purchase accounting fair value marks, the adjusted tax-equivalent net interest income for the three months ended September 30, 2018 was $35.2 million, a decrease of $56 thousand over the linked quarter.
Tax-equivalent interest and fees on loans and leases for the three months ended September 30, 2018 increased $432 thousand over the linked quarter. Average loans and leases for the three months ended September 30, 2018 increased $26.4 million over the linked quarter and experienced a four basis point decrease in tax-equivalent yield.
Tax-equivalent interest income on available for sale investment securities increased $62 thousand for the third quarter of 2018 as compared to the linked quarter. Average available for sale investment securities decreased by $2.8 million over the linked quarter and experienced a four basis point tax-equivalent yield increase.
Interest expense on deposits for the three months ended September 30, 2018 increased $1.0 million over the linked quarter. Average interest-bearing deposits increased $3.9 million coupled with a 16 basis point increase in the rate paid on deposits. This increase of 16 basis points on our interest-bearing deposits was also a key driver in the decrease in the tax-equivalent net interest margin which decreased six basis points to 3.52% at September 30, 2018 as compared to 3.58% in the linked quarter after adjusting for the impact of purchase accounting in both periods.
- Noninterest income of $18.3 million for the three months ended September 30, 2018 decreased $1.8 million as compared to the second quarter of 2018. Items contributing to the decrease included decreases of $1.4 million, $315 thousand and $148 thousand in capital markets revenue, fees for wealth management services and insurance commissions, respectively. Other operating income for the three months ended September 30, 2018 and June 30, 2018 included $1.2 million and $710 thousand, respectively, of recoveries of purchase accounting fair value marks resulting from the pay off, in full, of purchased credit impaired loans acquired in the Royal Bank merger.
- Noninterest expense of $33.6 million for the three months ended September 30, 2018 decreased $2.2 million as compared to $35.8 million for the second quarter of 2018. The decrease on a linked quarter basis was primarily related to the decrease of $2.7 million in due diligence, merger-related and merger integration expenses. The decrease was partially offset by increases of $479 thousand and $288 thousand of employee benefits and salaries and wages, respectively.
- The Provision decreased $2.5 million for the three months ended September 30, 2018 to $664 thousand, as compared the second quarter of 2018. The decrease in the Provision was primarily related to improvements in qualitative factors related to the current economic environment. Net loan and lease charge-offs for the third quarter of 2018 were relatively unchanged from the second quarter of 2018, decreasing by $23 thousand. Nonperforming loans and leases as of September 30, 2018 totaled $9.0 million, a decrease of $458 thousand from June 30, 2018.
- The effective tax rate for the third quarter of 2018 decreased to 19.6% from 20.2% for the second quarter of 2018. A net discrete tax benefit of $295 thousand was recorded in the third quarter of 2018, as compared to a net discrete tax benefit of $111 thousand in the second quarter of 2018. These discrete items were the result of excess tax benefits from stock-based compensation as well as the re-measurement of certain deferred tax items related to Tax Reform. With the filing of the Corporation’s 2017 income tax returns in the fourth quarter, we expect there will be further discrete tax benefits recorded in 2018.
Results of Operations –Third Quarter 2018 Compared to Third Quarter 2017
- Net income for the three months ended September 30, 2018 was $16.7 million, or $0.82 diluted earnings per share, as compared to $10.7 million, or diluted earnings per share of $0.62 for the same period in 2017. Contributing to the $6.0 million increase in net income was a $7.3 million increase in net interest income and increases of $1.8 million, $692 thousand, and $381 thousand in other operating income, fees for wealth management services, and insurance commissions, respectively. These increases were partially offset by increases of $2.9 million, $796 thousand, $623 thousand, $344 thousand, and $232 thousand in salaries and wages, employee benefits, other operating expenses, furniture, fixtures and equipment and occupancy and bank premises, respectively. These cost increases were primarily related to the addition of the Royal Bank staff and branch infrastructure. 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 30.7% for the three months ended September 30, 2017 to 19.6% for the same period in 2018.
On a non-GAAP basis, core net income, which excludes 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 $17.1 million, or $0.84 per diluted share, for the three months ended September 30, 2018 as compared to $11.2 million, or $0.65 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 September 30, 2018 was $36.9 million, an increase of $7.2 million as compared to the same period in 2017.
Tax-equivalent interest and fees on loans and leases increased $11.2 million for the three months ended September 30, 2018 as compared to the same period in 2017. Average loans and leases for the third quarter of 2018 increased $699.4 million from the same period in 2017 and experienced a 36 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 experienced a 29 basis point increase from the third quarter of 2018 as compared to the same period in 2017. This increase in average loans and leases was primarily related to the loans and leases acquired in the Royal Bank merger in December 2017 which initially increased loans and leases by $567.3 million, as well as organic loan growth between the periods.
Average available for sale investment securities increased by $78.0 million for the three months ended September 30, 2018 as compared to the same period in 2017 and experienced a 27 basis point tax-equivalent yield increase. The increase in average balances and yield on available for sale investment securities resulted in a $749 thousand increase in tax-equivalent interest income on available for sale investment securities for the third quarter of 2018 as compared to the same period in 2017.
Partially offsetting the effect on net interest income associated with the increase in average loans and leases and available for sale investment securities was a $3.3 million increase in interest expense on deposits for the three months ended September 30, 2018 as compared to the same period in 2017. Average interest-bearing deposits increased by $621.7 million, coupled with a 41 basis point increase in rate paid for the third quarter of 2018 as compared to the same period in 2017. The increase in average interest-bearing deposits for the third quarter of 2018 as compared to the same period in 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, interest expense on long- and short-term borrowings increased $298 thousand for the three months ended September 30, 2018 as compared to the same period in 2017. The increase was primarily attributed to a 118 basis point increase in rate paid for the third quarter of 2018 as compared to the same period in 2017.
Interest expense on subordinated debt and junior subordinated debt increased $774 thousand and $337 thousand, respectively, for the three months ended September 30, 2018 as compared to the same period in 2017. Average subordinated notes for the three months ended September 30, 2018 increased $68.9 million as compared to the same period in 2017 with the rate paid decreasing by 36 basis points to 4.61% for the three months ended September 30, 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 September 30, 2018 increased $21.5 million as compared to the same period in 2017 as the Corporation acquired $21.4 million of floating rate junior subordinated debentures, currently at a 6.22% rate, in the Royal Bank merger.
- The tax-equivalent net interest margin was 3.69% for the three months ended September 30, 2018 as compared to 3.71% 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 3.52% and 3.62% for three months ended September 30, 2018 and 2017, respectively. Key drivers responsible for the ten basis point decrease included the 41 basis point increase in rate paid on interest-bearing deposits coupled with average balance increases of $68.9 million and $21.5 million in subordinated notes and junior subordinated debentures, respectively, for the three months ended September 30, 2018 as compared to the same period in 2017.
- Noninterest income of $18.3 million for the three months ended September 30, 2018 increased by $2.7 million as compared to the same period in 2017. Increases of $1.8 million, $692 thousand and $381 thousand in other operating income, fees for wealth management services and insurance commissions, respectively, were recorded. The $1.8 million increase in other operating income was primarily related to a $1.2 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. The increase in fees for wealth management services related to the $1.48 billion increase in wealth assets under management, administration, supervision and brokerage between September 30, 2018 and September 30, 2017.
- Noninterest expense of $33.6 million for the three months ended September 30, 2018 increased $5.4 million as compared to the same period in 2017. Contributing to the $5.4 million increase were increases of $2.9 million, $796 thousand, $623 thousand, $344 thousand, and $232 thousand in salaries and wages, employee benefits, other operating expenses, furniture, fixtures and equipment and occupancy and bank premises expenses, respectively. A majority of these increases were related to the additional expenses associated with the staff and facilities assumed in the Royal Bank merger. Partially offsetting the increase in noninterest expense was a decrease of $461 thousand of due diligence, merger-related and merger integration expenses for the three months ended September 30, 2018 as compared to the same period in 2017.
- The Provision of $664 thousand for the three months ended September 30, 2018 decreased $669 thousand as compared to $1.3 million for the same period in 2017. The decrease in the Provision was primarily related to improvements in qualitative factors related to the current economic environment. Net charge-offs for the third quarter of 2018 were $1.4 million as compared to $728 thousand for the same period in 2017. Nonperforming loans and leases as of September 30, 2018 totaled $9.0 million, an increase of $4.5 million from September 30, 2017.
- The effective tax rate for the third quarter of 2018 decreased to 19.6% from 30.7% for the third quarter of 2017, primarily due to the reduced tax rates as a result of Tax Reform.
Financial Condition – September 30, 2018 Compared to December 31, 2017
- Total assets as of September 30, 2018 were $4.39 billion, a decrease of $61.3 million from December 31, 2017. Increases in portfolio loans and leases were largely offset by a decrease in available for sale investment securities discussed in the bullet point below.
- Available for sale investment securities as of September 30, 2018 totaled $528.1 million, a decrease of $161.1 million from December 31, 2017. The decrease is primarily due to the maturing, in January 2018, of $200 million of short-term U.S. Treasury bills, partially offset by increases of $39.4 million and $9.4 million in the U.S. government and agencies and the mortgage-backed securities segments of the portfolio, respectively.
- Total portfolio loans and leases of $3.38 billion as of September 30, 2018 increased by $95.6 million from December 31, 2017, an increase of 2.9%. Increases of $95.1 million, $23.1 million, $9.7 million, $8.5 million and $3.7 million in commercial mortgages, leases, consumer loans, residential mortgages, and commercial and industrial loans, respectively, were offset by decreases of $34.0 million and $10.5 million in construction loans and home equity loans and lines, respectively.
- The allowance for loan and lease losses (the “Allowance”) as of September 30, 2018 was $18.7 million, or 0.55% 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 of originated loans and leases as a percentage of originated loans and leases, which was 0.68% as of September 30, 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 1.28% as of September 30, 2018, as compared to 1.58% as of December 31, 2017. The 30 basis point decrease in the Allowance plus the remaining loan mark as a percentage of gross loans non-GAAP measure is primarily related to the decrease in the remaining loan mark from $34.8 million as of December 31, 2017 to $25.0 million as of September 30, 2018 coupled with the increase in portfolio loans between the respective dates. A reconciliation of these and other non-GAAP to GAAP performance measures is included in the appendix to this earnings release.
- Deposits of $3.36 billion as of September 30, 2018 decreased $16.6 million from December 31, 2017. Decreases of $90.5 million, $52.3 million, $50.6 million, and $38.2 million in noninterest-bearing deposits, savings accounts, money market accounts, and wholesale non-maturity deposits, respectively, were partially offset by increases of $96.9 million and $89.2 million in interest-bearing demand accounts and wholesale time deposits, respectively.
- Borrowings of $419.4 million as of September 30, 2018, which include short-term borrowings, long-term FHLB advances, subordinated notes and junior subordinated debentures, decreased $77.5 million from December 31, 2017. The decrease was comprised of a $66.3 million decrease in long-term FHLB advances, and a $11.4 million decrease in short-term borrowings.
- Wealth assets under management, administration, supervision and brokerage totaled $13.91 billion as of September 30, 2018, an increase of $944.5 million from December 31, 2017.
- The capital ratios for the Bank and the Corporation, as of September 30, 2018, as shown in the attached tables, indicate levels above the regulatory minimum to be considered “well capitalized.”
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; litigation; cybersecurity events; 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 | For the Nine Months Ended | ||||||||||||||||||||||||
| September 30, 2018 | June 30, 2018 |
March 31, 2018 |
December 31, 2017 | September 30, 2017 | September 30, 2018 | September 30, 2017 | |||||||||||||||||||
| Consolidated Balance Sheet (selected items) | |||||||||||||||||||||||||
| Interest-bearing deposits with banks | $ | 35,233 | $ | 39,924 | $ | 24,589 | $ | 48,367 | $ | 36,870 | |||||||||||||||
| Investment securities | 545,320 | 547,088 | 550,199 | 701,744 | 482,399 | ||||||||||||||||||||
| Loans held for sale | 4,111 | 4,204 | 5,522 | 3,794 | 6,327 | ||||||||||||||||||||
| Portfolio loans and leases | 3,381,475 | 3,389,501 | 3,305,795 | 3,285,858 | 2,677,345 | ||||||||||||||||||||
| Allowance for loan and lease losses (“ALLL”) | (18,684 | ) | (19,398 | ) | (17,662 | ) | (17,525 | ) | (17,004 | ) | |||||||||||||||
| Goodwill and other intangible assets | 208,165 | 208,139 | 207,287 | 205,855 | 128,534 | ||||||||||||||||||||
| Total assets | 4,388,442 | 4,394,203 | 4,300,376 | 4,449,720 | 3,476,821 | ||||||||||||||||||||
| Deposits – interest-bearing | 2,522,863 | 2,466,529 | 2,452,421 | 2,448,954 | 1,923,567 | ||||||||||||||||||||
| Deposits – non-interest-bearing | 834,363 | 892,386 | 863,118 | 924,844 | 760,614 | ||||||||||||||||||||
| Short-term borrowings | 226,498 | 227,059 | 173,704 | 237,865 | 180,874 | ||||||||||||||||||||
| Long-term FHLB advances | 72,841 | 87,808 | 107,784 | 139,140 | 134,651 | ||||||||||||||||||||
| Subordinated notes | 98,482 | 98,491 | 98,448 | 98,416 | 29,573 | ||||||||||||||||||||
| Jr. subordinated debentures | 21,538 | 21,497 | 21,456 | 21,416 | — | ||||||||||||||||||||
| Total liabilities | 3,837,017 | 3,851,700 | 3,767,315 | 3,921,601 | 3,074,929 | ||||||||||||||||||||
| Total shareholders’ equity | 551,425 | 542,503 | 533,061 | 528,119 | 401,892 | ||||||||||||||||||||
| Average Balance Sheet (selected items) | |||||||||||||||||||||||||
| Interest-bearing deposits with banks | 37,467 | 37,215 | 38,044 | 43,962 | 26,628 | 37,573 | 30,807 | ||||||||||||||||||
| Investment securities | 546,998 | 549,249 | 535,471 | 499,968 | 462,700 | 543,948 | 428,723 | ||||||||||||||||||
| Loans held for sale | 4,932 | 4,413 | 2,848 | 3,966 | 3,728 | 4,072 | 3,938 | ||||||||||||||||||
| Portfolio loans and leases | 3,374,767 | 3,348,926 | 3,288,364 | 2,801,289 | 2,676,589 | 3,337,669 | 2,613,720 | ||||||||||||||||||
| Total interest-earning assets | 3,964,164 | 3,939,803 | 3,864,727 | 3,349,185 | 3,169,645 | 3,923,262 | 3,077,188 | ||||||||||||||||||
| Goodwill and intangible assets | 207,880 | 208,039 | 205,529 | 142,652 | 128,917 | 207,158 | 126,794 | ||||||||||||||||||
| Total assets | 4,376,148 | 4,344,541 | 4,246,180 | 3,640,667 | 3,441,906 | 4,331,605 | 3,340,484 | ||||||||||||||||||
| Deposits – interest-bearing | 2,493,213 | 2,489,296 | 2,435,491 | 2,031,170 | 1,871,494 | 2,474,254 | 1,859,188 | ||||||||||||||||||
| Short-term borrowings | 208,201 | 205,323 | 172,534 | 180,650 | 182,845 | 195,483 | 110,268 | ||||||||||||||||||
| Long-term FHLB advances | 81,460 | 102,023 | 123,920 | 134,605 | 155,918 | 102,312 | 169,900 | ||||||||||||||||||
| Subordinated notes | 98,457 | 98,463 | 98,430 | 43,844 | 29,564 | 98,450 | 29,550 | ||||||||||||||||||
| Jr. subordinated debentures | 21,511 | 21,470 | 21,430 | 3,957 | — | 21,470 | — | ||||||||||||||||||
| Total interest-bearing liabilities | 2,902,842 | 2,916,575 | 2,851,805 | 2,394,226 | 2,239,821 | 2,891,969 | 2,168,906 | ||||||||||||||||||
| Total liabilities | 3,828,241 | 3,810,640 | 3,719,746 | 3,213,349 | 3,044,549 | 3,794,979 | 2,950,666 | ||||||||||||||||||
| Total shareholders’ equity | 547,907 | 533,901 | 526,434 | 427,318 | 397,357 | 536,626 | 389,818 | ||||||||||||||||||
Bryn Mawr Bank Corporation
Summary Financial Information (unaudited)
(dollars in thousands, except per share data)
| As of or For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||||||
| September 30, 2018 | June 30, 2018 |
March 31, 2018 |
December 31, 2017 | September 30, 2017 | September 30, 2018 | September 30, 2017 | |||||||||||||||||||||
| Income Statement | |||||||||||||||||||||||||||
| Net interest income | $ | 36,729 | $ | 37,316 | $ | 37,439 | $ | 30,321 | $ | 29,438 | $ | 111,484 | $ | 84,806 | |||||||||||||
| Provision for loan and lease losses | 664 | 3,137 | 1,030 | 1,077 | 1,333 | 4,831 | 1,541 | ||||||||||||||||||||
| Noninterest income | 18,274 | 20,075 | 19,536 | 15,536 | 15,584 | 57,885 | 43,596 | ||||||||||||||||||||
| Noninterest expense | 33,592 | 35,836 | 36,030 | 31,056 | 28,184 | 105,458 | 83,339 | ||||||||||||||||||||
| Income tax expense | 4,066 | 3,723 | 4,630 | 19,924 | 4,766 | 12,419 | 14,306 | ||||||||||||||||||||
| Net income | 16,681 | 14,695 | 15,285 | (6,200 | ) | 10,739 | 46,661 | 29,216 | |||||||||||||||||||
| Net income (loss) attributable to noncontrolling interest | (1 | ) | 7 | (1 | ) | — | — | 5 | — | ||||||||||||||||||
| Net income (loss) attributable to Bryn Mawr Bank Corporation | 16,682 | 14,688 | 15,286 | (6,200 | ) | 10,739 | 46,656 | 29,216 | |||||||||||||||||||
| Basic earnings per share | 0.82 | 0.73 | 0.76 | (0.35 | ) | 0.63 | 2.31 | 1.72 | |||||||||||||||||||
| Diluted earnings per share | 0.82 | 0.72 | 0.75 | (0.35 | ) | 0.62 | 2.28 | 1.69 | |||||||||||||||||||
| Net income (core) (1) | 17,140 | 17,031 | 19,282 | 11,255 | 11,245 | 53,453 | 30,857 | ||||||||||||||||||||
| Basic earnings per share (core) (1) | 0.85 | 0.84 | 0.95 | 0.64 | 0.66 | 2.64 | 1.82 | ||||||||||||||||||||
| Diluted earnings per share (core) (1) | 0.84 | 0.83 | 0.94 | 0.63 | 0.65 | 2.61 | 1.79 | ||||||||||||||||||||
| Dividends paid or accrued per share | 0.25 | 0.22 | 0.22 | 0.22 | 0.22 | 0.69 | 0.64 | ||||||||||||||||||||
| Profitability Indicators | |||||||||||||||||||||||||||
| Return on average assets | 1.51 | % | 1.36 | % | 1.46 | % | (0.68 | )% | 1.24 | % | 1.44 | % | 1.17 | % | |||||||||||||
| Return on average equity | 12.08 | % | 11.03 | % | 11.78 | % | (5.76 | )% | 10.72 | % | 11.62 | % | 10.02 | % | |||||||||||||
| Return on tangible equity(1) | 20.25 | % | 18.90 | % | 20.15 | % | (8.02 | )% | 16.52 | % | 19.74 | % | 15.53 | % | |||||||||||||
| Return on tangible equity (core)(1) | 20.78 | % | 21.78 | % | 25.19 | % | 16.29 | % | 17.27 | % | 22.50 | % | 16.36 | % | |||||||||||||
| Return on average assets (core)(1) | 1.55 | % | 1.57 | % | 1.84 | % | 1.23 | % | 1.30 | % | 1.65 | % | 1.24 | % | |||||||||||||
| Return on average equity (core)(1) | 12.41 | % | 12.79 | % | 14.85 | % | 10.45 | % | 11.23 | % | 13.32 | % | 10.58 | % | |||||||||||||
| Tax-equivalent net interest margin | 3.69 | % | 3.81 | % | 3.94 | % | 3.62 | % | 3.71 | % | 3.81 | % | 3.71 | % | |||||||||||||
| Efficiency ratio(1) | 58.75 | % | 55.57 | % | 54.12 | % | 58.64 | % | 59.30 | % | 56.12 | % | 61.32 | % | |||||||||||||
| Share Data | |||||||||||||||||||||||||||
| Closing share price | $ | 46.90 | $ | 46.30 | $ | 43.95 | $ | 44.20 | $ | 43.80 | < td /> | ||||||||||||||||
| Book value per common share | $ | 27.18 | $ | 26.80 | $ | 26.35 | $ | 26.19 | $ | 23.57 | |||||||||||||||||
| Tangible book value per common share | $ | 16.95 | $ | 16.55 | $ | 16.14 | $ | 16.02 | $ | 16.03 | |||||||||||||||||
| Price / book value | 172.55 | % | 172.76 | % | 166.79 | % | 168.74 | % | 185.82 | % | |||||||||||||||||
| Price / tangible book value | 276.70 | % | 279.74 | % | 272.35 | % | 275.94 | % | 273.19 | % | |||||||||||||||||
| Weighted average diluted shares outstanding | 20,438,376 | 20,413,578 | 20,450,494 | 17,844,672 | 17,253,982 | 20,444,075 | 17,242,227 | ||||||||||||||||||||
| Shares outstanding, end of period | 20,291,416 | 20,242,893 | 20,229,896 | 20,161,395 | 17,050,151 | ||||||||||||||||||||||
| Wealth Management Information: | |||||||||||||||||||||||||||
| Wealth assets under mgmt, administration, supervision and brokerage (2) | $ | 13,913,265 | $ | 13,404,723 | $ | 13,146,926 | $ | 12,968,738 | $ | 12,431,370 | |||||||||||||||||
| Fees for wealth management services | $ | 10,343 | $ | 10,658 | $ | 10,308 | $ | 9,974 | $ | 9,651 | |||||||||||||||||
Bryn Mawr Bank Corporation
Summary Financial Information (unaudited)
(dollars in thousands, except per share data)
| As of or For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||||||
| September 30, 2018 | June 30, 2018 |
March 31, 2018 |
December 31, 2017 | September 30, 2017 | September 30, 2018 | September 30, 2017 | |||||||||||||||||||||
| Capital Ratios(3) | |||||||||||||||||||||||||||
| Bryn Mawr Trust Company (“BMTC”) | |||||||||||||||||||||||||||
| Tier I capital to risk weighted assets (“RWA”) | 11.55 | % | 11.34 | % | 11.29 | % | 11.10 | % | 10.78 | % | |||||||||||||||||
| Total capital to RWA | 12.10 | % | 11.91 | % | 11.82 | % | 11.65 | % | 11.42 | % | |||||||||||||||||
| Tier I leverage ratio | 9.47 | % | 9.49 | % | 9.39 | % | 10.76 | % | 8.79 | % | |||||||||||||||||
| Tangible equity ratio (1) | 9.29 | % | 9.27 | % | 9.19 | % | 8.67 | % | 8.46 | % | |||||||||||||||||
| Common equity Tier I capital to RWA | 11.55 | % | 11.34 | % | 11.29 | % | 11.10 | % | 10.78 | % | |||||||||||||||||
| Bryn Mawr Bank Corporation (“BMBC”) | |||||||||||||||||||||||||||
| Tier I capital to RWA | 10.90 | % | 10.46 | % | 10.46 | % | 10.42 | % | 10.50 | % | |||||||||||||||||
| Total capital to RWA | 14.33 | % | 13.87 | % | 13.93 | % | 13.92 | % | 12.23 | % | |||||||||||||||||
| Tier I leverage ratio | 8.94 | % | 8.75 | % | 8.71 | % | 10.10 | % | 8.53 | % | |||||||||||||||||
| Tangible equity ratio (1) | 8.23 | % | 8.00 | % | 7.98 | % | 7.61 | % | 8.16 | % | |||||||||||||||||
| Common equity Tier I capital to RWA | 10.29 | % | 9.86 | % | 9.85 | % | 9.87 | % | 10.50 | % | |||||||||||||||||
| Asset Quality Indicators | |||||||||||||||||||||||||||
| Net loan and lease charge-offs (“NCO”s) | $ | 1,378 | $ | 1,401 | $ | 893 | $ | 556 | $ | 728 | $ | 4,228 | $ | 2,023 | |||||||||||||
| Nonperforming loans and leases (“NPL”s) | $ | 8,990 | $ | 9,448 | $ | 7,533 | $ | 8,579 | $ | 4,472 | |||||||||||||||||
| Other real estate owned (“OREO”) | 529 | 531 | 300 | 304 | 865 | ||||||||||||||||||||||
| Total nonperforming assets (“NPA”s) | $ | 9,519 | $ | 9,979 | $ | 7,833 | $ | 8,883 | $ | 5,337 | |||||||||||||||||
| Nonperforming loans and leases 30 or more days past due | $ | 4,906 | $ | 6,749 | $ | 5,775 | $ | 6,983 | $ | 2,337 | |||||||||||||||||
| Performing loans and leases 30 to 89 days past due | 9,145 | 10,378 | 6,547 | 7,958 | 4,558 | ||||||||||||||||||||||
| Performing loans and leases 90 or more days past due | — | — | — | — | — | ||||||||||||||||||||||
| Total delinquent loans and leases | $ | 14,051 | $ | 17,127 | $ | 12,322 | $ | 14,941 | $ | 6,895 | |||||||||||||||||
| Delinquent loans and leases to total loans and leases | 0.42 | % | 0.50 | % | 0.37 | % | 0.45 | % | 0.26 | % | |||||||||||||||||
| Delinquent performing loans and leases to total loans and leases | 0.27 | % | 0.31 | % | 0.20 | % | 0.24 | % | 0.17 | % | |||||||||||||||||
| NCOs / average loans and leases (annualized) | 0.16 | % | 0.17 | % | 0.11 | % | 0.08 | % | 0.11 | % | 0.17 | % | 0.10 | % | |||||||||||||
| NPLs / total portfolio loans and leases | 0.27 | % | 0.28 | % | 0.23 | % | 0.26 | % | 0.17 | % | |||||||||||||||||
| NPAs / total loans and leases and OREO | 0.28 | % | 0.29 | % | 0.24 | % | 0.27 | % | 0.20 | % | |||||||||||||||||
| NPAs / total assets | 0.22 | % | 0.23 | % | 0.18 | % | 0.20 | % | 0.15 | % | |||||||||||||||||
| ALLL / NPLs | 207.83 | % | 205.31 | % | 234.46 | % | 204.28 | % | 380.23 | % | |||||||||||||||||
| ALLL / portfolio loans | 0.55 | % | 0.57 | % | 0.53 | % | 0.53 | % | 0.64 | % | |||||||||||||||||
| ALLL on originated loans and leases / Originated loans and leases (1) | 0.68 | % | 0.71 | % | 0.69 | % | 0.70 | % | 0.70 | % | |||||||||||||||||
| (Total ALLL + Loan mark) / Total Gross portfolio loans and leases (1) | 1.28 | % | 1.35 | % | 1.50 | % | 1.58 | % | 1.01 | % | |||||||||||||||||
| Troubled debt restructurings (“TDR”s) included in NPLs | $ | 1,208 | $ | 1,044 | $ | 1,125 | $ | 3,289 | $ | 2,033 | |||||||||||||||||
| TDRs in compliance with modified terms | 4,316 | 4,117 | 5,235 | 5,800 | 6,597 | ||||||||||||||||||||||
| Total TDRs | $ | 5,524 | $ | 5,161 | $ | 6,360 | $ | 9,089 | $ | 8,630 | |||||||||||||||||
(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)
| September 30, 2018 | June 30, 2018 |
March 31, 2018 |
December 31, 2017 | September 30, 2017 | |||||||||||||||
| Assets | |||||||||||||||||||
| Cash and due from banks | $ | 10,121 | $ | 7,318 | $ | 7,804 | $ | 11,657 | $ | 8,682 | |||||||||
| Interest-bearing deposits with banks | 35,233 | 39,924 | 24,589 | 48,367 | 36,870 | ||||||||||||||
| Cash and cash equivalents | 45,354 | 47,242 | 32,393 | 60,024 | 45,552 | ||||||||||||||
| Investment securities, available for sale | 528,064 | 531,075 | 534,103 | 689,202 | 471,721 | ||||||||||||||
| Investment securities, held to maturity | 8,916 | 7,838 | 7,885 | 7,932 | 6,255 | ||||||||||||||
| Investment securities, trading | 8,340 | 8,175 | 8,211 | 4,610 | 4,423 | ||||||||||||||
| Loans held for sale | 4,111 | 4,204 | 5,522 | 3,794 | 6,327 | ||||||||||||||
| Portfolio loans and leases, originated | 2,752,160 | 2,700,815 | 2,564,827 | 2,487,296 | 2,433,054 | ||||||||||||||
| Portfolio loans and leases, acquired | 629,315 | 688,686 | 740,968 | 798,562 | 244,291 | ||||||||||||||
| Total portfolio loans and leases | 3,381,475 | 3,389,501 | 3,305,795 | 3,285,858 | 2,677,345 | ||||||||||||||
| Less: Allowance for losses on originated loan and leases | (18,612 | ) | (19,181 | ) | (17,570 | ) | (17,475 | ) | (16,957 | ) | |||||||||
| Less: Allowance for losses on acquired loan and leases | (72 | ) | (217 | ) | (92 | ) | (50 | ) | (47 | ) | |||||||||
| Total allowance for loan and lease losses | (18,684 | ) | (19,398 | ) | (17,662 | ) | (17,525 | ) | (17,004 | ) | |||||||||
| Net portfolio loans and leases | 3,362,791 | 3,370,103 | 3,288,133 | 3,268,333 | 2,660,341 | ||||||||||||||
| Premises and equipment | 63,281 | 54,185 | 54,986 | 54,458 | 44,544 | ||||||||||||||
| Accrued interest receivable | 13,232 | 13,115 | 12,521 | 14,246 | 9,287 | ||||||||||||||
| Mortgage servicing rights | 5,328 | 5,511 | 5,706 | 5,861 | 5,732 | ||||||||||||||
| Bank owned life insurance | 57,543 | 57,243 | 56,946 | 56,667 | 39,881 | ||||||||||||||
| Federal Home Loan Bank (“FHLB”) stock | 14,678 | 16,678 | 15,499 | 20,083 | 16,248 | ||||||||||||||
| Goodwill | 183,864 | 183,162 | 182,200 | 179,889 | 107,127 | ||||||||||||||
| Intangible assets | 24,301 | 24,977 | 25,087 | 25,966 | 21,407 | ||||||||||||||
| Other investments | 16,529 | 16,774 | 11,720 | 12,470 | 8,941 | ||||||||||||||
| Other assets | 52,110 | 53,921 | 59,464 | 46,185 | 29,035 | ||||||||||||||
| Total assets | $ | 4,388,442 | $ | 4,394,203 | $ | 4,300,376 | $ | 4,449,720 | $ | 3,476,821 | |||||||||
| Liabilities | |||||||||||||||||||
| Deposits | |||||||||||||||||||
| Noninterest-bearing | $ | 834,363 | $ | 892,386 | $ | 863,118 | $ | 924,844 | $ | 760,614 | |||||||||
| Interest-bearing | 2,522,863 | 2,466,529 | 2,452,421 | 2,448,954 | 1,923,567 | ||||||||||||||
| Total deposits | 3,357,226 | 3,358,915 | 3,315,539 | 3,373,798 | 2,684,181 | ||||||||||||||
| Short-term borrowings | 226,498 | 227,059 | 173,704 | 237,865 | 180,874 | ||||||||||||||
| Long-term FHLB advances | 72,841 | 87,808 | 107,784 | 139,140 | 134,651 | ||||||||||||||
| Subordinated notes | 98,482 | 98,491 | 98,448 | 98,416 | 29,573 | ||||||||||||||
| Jr. subordinated debentures | 21,538 | 21,497 | 21,456 | 21,416 | — | ||||||||||||||
| Accrued interest payable | 7,193 | 5,230 | 4,814 | 3,527 | 2,267 | ||||||||||||||
| Other liabilities | 53,239 | 52,700 | 45,570 | 47,439 | 43,383 | ||||||||||||||
| Total liabilities | 3,837,017 | 3,851,700 | 3,767,315 | 3,921,601 | 3,074,929 | ||||||||||||||
| Shareholders’ equity | |||||||||||||||||||
| Common stock | 24,533 | 24,453 | 24,439 | 24,360 | 21,248 | ||||||||||||||
| Paid-in capital in excess of par value | 373,205 | 372,227 | 371,319 | 371,486 | 235,412 | ||||||||||||||
| Less: common stock held in treasury, at cost | (70,437 | ) | (68,943 | ) | (68,787 | ) | (68,179 | ) | (68,134 | ) | |||||||||
| Accumulated other comprehensive (loss) income, net of tax | (13,402 | ) | (11,191 | ) | (9,664 | ) | (4,414 | ) | (1,400 | ) | |||||||||
| Retained earnings | 238,204 | 226,634 | 216,438 | 205,549 | 214,766 | ||||||||||||||
| Total Bryn Mawr Bank Corporation shareholders’ equity | 552,103 | 543,180 | 533,745 | 528,802 | 401,892 | ||||||||||||||
| Noncontrolling interest | (678 | ) | (677 | ) | (684 | ) | (683 | ) | — | ||||||||||
| Total shareholders’ equity | 551,425 | 542,503 | 533,061 | 528,119 | 401,892 | ||||||||||||||
| Total liabilities and shareholders’ equity | $ | 4,388,442 | $ | 4,394,203 | $ | 4,300,376 | $ | 4,449,720 | $ | 3,476,821 | |||||||||
Bryn Mawr Bank Corporation
Supplemental Balance Sheet Information (unaudited)
(dollars in thousands)
| Portfolio Loans and Leases as of | |||||||||||||||||||
| September 30, 2018 | June 30, 2018 |
March 31, 2018 |
December 31, 2017 | September 30, 2017 | |||||||||||||||
| Commercial mortgages | $ | 1,618,493 | $ | 1,613,721 | $ | 1,541,457 | $ | 1,523,377 | $ | 1,224,571 | |||||||||
| Home equity loans and lines | 207,806 | 206,429 | 211,469 | 218,275 | 206,974 | ||||||||||||||
| Residential mortgages | 467,402 | 449,060 | 453,655 | 458,886 | 422,524 | ||||||||||||||
| Construction | 178,493 | 190,874 | 202,168 | 212,454 | 133,505 | ||||||||||||||
| Total real estate loans | 2,472,194 | 2,460,084 | 2,408,749 | 2,412,992 | 1,987,574 | ||||||||||||||
| Commercial & Industrial | 722,999 | 745,306 | 727,231 | 719,312 | 597,595 | ||||||||||||||
| Consumer | 47,809 | 51,462 | 48,423 | 38,153 | 31,306 | ||||||||||||||
| Leases | 138,473 | 132,649 | 121,392 | 115,401 | 60,870 | ||||||||||||||
| Total non-real estate loans and leases | 909,281 | 929,417 | 897,046 | 872,866 | 689,771 | ||||||||||||||
| Total portfolio loans and leases | $ | 3,381,475 | $ | 3,389,501 | $ | 3,305,795 | $ | 3,285,858 | $ | 2,677,345 | |||||||||
| Nonperforming Loans and Leases as of | |||||||||||||||||||
| September 30, 2018 | June 30, 2018 |
March 31, 2018 |
December 31, 2017 | September 30, 2017 | |||||||||||||||
| Commercial mortgages | $ | 735 | $ | 1,011 | $ | 138 | $ | 872 | $ | 193 | |||||||||
| Home equity loans and lines | 1,933 | 2,323 | 1,949 | 1,481 | 613 | ||||||||||||||
| Residential mortgages | 2,770 | 2,647 | 2,603 | 4,417 | 1,589 | ||||||||||||||
| Construction | 291 | — | — | — | — | ||||||||||||||
| Total nonperforming real estate loans | 5,729 | 5,980 | 4,690 | 6,770 | 2,395 | ||||||||||||||
| Commercial & Industrial | 1,782 | 1,585 | 2,499 | 1,706 | 1,977 | ||||||||||||||
| Consumer | 117 | — | — | — | — | ||||||||||||||
| Leases | 1,362 | 1,882 | 344 | 103 | 100 | ||||||||||||||
| Total nonperforming non-real estate loans and leases | 3,261 | 3,468 | 2,843 | 1,809 | 2,077 | ||||||||||||||
| Total nonperforming portfolio loans and leases | $ | 8,990 | $ | 9,448 | $ | 7,533 | $ | 8,579 | $ | 4,472 | |||||||||
| Net Loan and Lease Charge-Offs (Recoveries) for the Three Months Ended | |||||||||||||||||||
| September 30, 2018 | June 30, 2018 |
March 31, 2018 |
December 31, 2017 | September 30, 2017 | |||||||||||||||
| Commercial mortgage | $ | 56 | $ | 13 | $ | (3 | ) | $ | 51 | $ | (3 | ) | |||||||
| Home equity loans and lines | — | 199 | 25 | (5 | ) | 69 | |||||||||||||
| Residential | (12 | ) | (1 | ) | — | 88 | 3 | ||||||||||||
| Construction | — | (1 | ) | (1 | ) | (1 | ) | (1 | ) | ||||||||||
| Total net charge-offs of real estate loans | 44 | 210 | 21 | 133 | 68 | ||||||||||||||
| Commercial & Industrial | 304 | 467 | 283 | 125 | 298 | ||||||||||||||
| Consumer | 71 | 41 | 48 | 55 | 36 | ||||||||||||||
| Leases | 959 | 683 | 541 | 243 | 326 | ||||||||||||||
| Total net charge-offs of non-real estate loans and leases | 1,334 | 1,191 | 872 | 423 | 660 | ||||||||||||||
| Total net charge-offs | $ | 1,378 | $ | 1,401 | $ | 893 | $ | 556 | $ | 728 | |||||||||
Bryn Mawr Bank Corporation
Supplemental Balance Sheet Information (unaudited)
(dollars in thousands)
| Investment Securities Available for Sale, at Fair Value | |||||||||||||||||||
| September 30, 2018 | June 30, 2018 |
March 31, 2018 |
December 31, 2017 | September 30, 2017 | |||||||||||||||
| U.S. Treasury securities | $ | 100 | $ | 100 | $ | 100 | $ | 200,088 | $ | 100 | |||||||||
| Obligations of the U.S. Government and agencies | 190,453 | 183,256 | 175,107 | 151,044 | 142,711 | ||||||||||||||
| State & political subdivisions – tax-free | 15,629 | 17,254 | 19,746 | 21,138 | 23,556 | ||||||||||||||
| State & political subdivisions – taxable | 170 | 171 | 171 | 172 | 524 | ||||||||||||||
| Mortgage-backed securities | 284,421 | 292,563 | 303,902 | 274,990 | 260,680 | ||||||||||||||
| Collateralized mortgage obligations | 36,193 | 36,634 | 33,980 | 36,662 | 39,595 | ||||||||||||||
| Other debt securities | 1,098 | 1,097 | 1,097 | 1,599 | 1,100 | ||||||||||||||
| Other investments | — | — | — | 3,509 | 3,455 | ||||||||||||||
| Total investment securities available for sale, at fair value | $ | 528,064 | $ | 531,075 | $ | 534,103 | $ | 689,202 | $ | 471,721 | |||||||||
| Unrealized Gain (Loss) on Investment Securities Available for Sale | |||||||||||||||||||
| September 30, 2018 | June 30, 2018 |
March 31, 2018 |
December 31, 2017 | September 30, 2017 | |||||||||||||||
| U.S. Treasury securities | $ | — | $ | — | $ | — | $ | 11 | $ | — | |||||||||
| Obligations of the U.S. Government and agencies | (5,881 | ) | (4,594 | ) | (3,756 | ) | (1,984 | ) | (920 | ) | |||||||||
| State & political subdivisions – tax-free | (90 | ) | (57 | ) | (74 | ) | (42 | ) | 23 | ||||||||||
| State & political subdivisions – taxable | (1 | ) | (1 | ) | (1 | ) | — | 1 | |||||||||||
| Mortgage-backed securities | (7,584 | ) | (6,141 | ) | (5,169 | ) | (968 | ) | 869 | ||||||||||
| Collateralized mortgage obligations | (1,618 | ) | (1,443 | ) | (1,322 | ) | (934 | ) | (640 | ) | |||||||||
| Other debt securities | (2 | ) | (3 | ) | (3 | ) | (1 | ) | — | ||||||||||
| Other investments | — | — | — | 296 | 230 | ||||||||||||||
| Total unrealized losses on investment securities available for sale | $ | (15,176 | ) | $ | (12,239 | ) | $ | (10,325 | ) | $ | (3,622 | ) | $ | (437 | ) | ||||
| Deposits | |||||||||||||||||||
| September 30, 2018 | June 30, 2018 |
March 31, 2018 |
December 31, 2017 | September 30, 2017 | |||||||||||||||
| Interest-bearing deposits: | |||||||||||||||||||
| Interest-bearing demand | $ | 578,243 | $ | 617,258 | $ | 529,478 | $ | 481,336 | $ | 395,383 | |||||||||
| Money market | 812,027 | 814,530 | 856,072 | 862,639 | 720,613 | ||||||||||||||
| Savings | 286,266 | 291,858 | 308,925 | 338,572 | 264,273 | ||||||||||||||
| Retail time deposits | 561,123 | 536,287 | 523,138 | 532,202 | 316,068 | ||||||||||||||
| Wholesale non-maturity deposits | 24,040 | 36,826 | 63,449 | 62,276 | 48,620 | ||||||||||||||
| Wholesale time deposits | 261,164 | 169,770 | 171,359 | 171,929 | 178,610 | ||||||||||||||
| Total interest-bearing deposits | 2,522,863 | 2,466,529 | 2,452,421 | 2,448,954 | 1,923,567 | ||||||||||||||
| Noninterest-bearing deposits | 834,363 | 892,386 | 863,118 | 924,844 | 760,614 | ||||||||||||||
| Total deposits | $ | 3,357,226 | $ | 3,358,915 | $ | 3,315,539 | $ | 3,373,798 | $ | 2,684,181 | |||||||||
Bryn Mawr Bank Corporation
Detailed Income Statements (unaudited)
(dollars in thousands, except per share data)
| For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||||||
| September 30, 2018 | June 30, 2018 |
March 31, 2018 |
December 31, 2017 | September 30, 2017 | September 30, 2018 | September 30, 2017 | |||||||||||||||||||||
| Interest income: | |||||||||||||||||||||||||||
| Interest and fees on loans and leases | $ | 42,103 | $ | 41,689 | $ | 40,689 | $ | 32,245 | $ | 30,892 | $ | 124,481 | $ | 88,517 | |||||||||||||
| Interest on cash and cash equivalents | 64 | 64 | 53 | 37 | 36 | 181 | 137 | ||||||||||||||||||||
| Interest on investment securities | 3,066 | 3,001 | 2,792 | 2,516 | 2,270 | 8,859 | 6,107 | ||||||||||||||||||||
| Total interest income | 45,233 | 44,754 | 43,534 | 34,798 | 33,198 | 133,521 | 94,761 | ||||||||||||||||||||
| Interest expense: | |||||||||||||||||||||||||||
| Interest on deposits | 5,533 | 4,499 | 3,472 | 2,739 | 2,198 | 13,504 | 6,009 | ||||||||||||||||||||
| Interest on short-term borrowings | 1,096 | 985 | 630 | 579 | 547 | 2,711 | 811 | ||||||||||||||||||||
| Interest on FHLB advances | 394 | 490 | 562 | 595 | 645 | 1,446 | 2,025 | ||||||||||||||||||||
| Interest on jr. subordinated debentures | 337 | 321 | 288 | 46 | — | 946 | — | ||||||||||||||||||||
| Interest on subordinated notes | 1,144 | 1,143 | 1,143 | 518 | 370 | 3,430 | 1,110 | ||||||||||||||||||||
| Total interest expense | 8,504 | 7,438 | 6,095 | 4,477 | 3,760 | 22,037 | 9,955 | ||||||||||||||||||||
| Net interest income | 36,729 | 37,316 | 37,439 | 30,321 | 29,438 | 111,484 | 84,806 | ||||||||||||||||||||
| Provision for (recovery of) loan and lease losses (the “Provision”) | 664 | 3,137 | 1,030 | 1,077 | 1,333 | 4,831 | 1,541 | ||||||||||||||||||||
| Net interest income after Provision | 36,065 | 34,179 | 36,409 | 29,244 | 28,105 | 106,653 | 83,265 | ||||||||||||||||||||
| Noninterest income: | |||||||||||||||||||||||||||
| Fees for wealth management services | 10,343 | 10,658 | 10,308 | 9,974 | 9,651 | 31,309 | 28,761 | ||||||||||||||||||||
| Insurance commissions | 1,754 | 1,902 | 1,693 | 1,510 | 1,373 | 5,349 | 3,079 | ||||||||||||||||||||
| Capital markets revenue | 710 | 2,105 | 666 | 600 | 843 | 3,481 | 1,796 | ||||||||||||||||||||
| Service charges on deposits | 726 | 752 | 713 | 655 | 676 | 2,191 | 1,953 | ||||||||||||||||||||
| Loan servicing and other fees | 559 | 475 | 686 | 536 | 548 | 1,720 | 1,570 | ||||||||||||||||||||
| Net gain on sale of loans | 631 | 528 | 518 | 493 | 799 | 1,677 | 1,948 | ||||||||||||||||||||
| Net gain on sale of investment securities available for sale | — | — | 7 | 28 | 72 | 7 | 73 | ||||||||||||||||||||
| Net gain (loss) on sale of other real estate owned | 5 | 111 | 176 | (92 | ) | — | 292 | (12 | ) | ||||||||||||||||||
| Dividends on FHLB and FRB stocks | 375 | 510 | 431 | 290 | 217 | 1,316 | 649 | ||||||||||||||||||||
| Other operating income | 3,171 | 3,034 | 4,338 | 1,542 | 1,405 | 10,543 | 3,779 | ||||||||||||||||||||
| Total noninterest income | 18,274 | 20,075 | 19,536 | 15,536 | 15,584 | 57,885 | 43,596 | ||||||||||||||||||||
| Noninterest expense: | |||||||||||||||||||||||||||
| Salaries and wages | 16,528 | 16,240 | 15,982 | 13,619 | 13,602 | 48,750 | 39,632 | ||||||||||||||||||||
| Employee benefits | 3,356 | 2,877 | 3,708 | 2,717 | 2,560 | 9,941 | 7,453 | ||||||||||||||||||||
| Occupancy and bank premises | 2,717 | 2,697 | 3,050 | 2,648 | 2,485 | 8,464 | 7,258 | ||||||||||||||||||||
| Furniture, fixtures and equipment | 2,070 | 2,069 | 1,898 | 1,816 | 1,726 | 6,037 | 5,569 | ||||||||||||||||||||
| Advertising | 349 | 369 | 461 | 386 | 277 | 1,179 | 1,068 | ||||||||||||||||||||
| Amortization of intangible assets | 891 | 889 | 879 | 677 | 677 | 2,659 | 2,057 | ||||||||||||||||||||
| (Recovery) impairment of mortgage servicing rights (“MSRs”) | (23 | ) | (1 | ) | (50 | ) | (94 | ) | 3 | (74 | ) | 49 | |||||||||||||||
| Due diligence, merger-related and merger integration expenses | 389 | 3,053 | 4,319 | 3,507 | 850 | 7,761 | 2,597 | ||||||||||||||||||||
| Professional fees | 997 | 932 | 748 | 769 | 739 | 2,677 | 2,499 | ||||||||||||||||||||
| Pennsylvania bank shares tax | 472 | 473 | 473 | 16 | 317 | 1,418 | 1,278 | ||||||||||||||||||||
| Information technology | 1,155 | 1,252 | 1,195 | 1,006 | 880 | 3,602 | 2,575 | ||||||||||||||||||||
| Other operating expenses | 4,691 | 4,986 | 3,367 | 3,989 | 4,068 | 13,044 | 11,304 | ||||||||||||||||||||
| Total noninterest expense | 33,592 | 35,836 | 36,030 | 31,056 | 28,184 | 105,458 | 83,339 | ||||||||||||||||||||
| Income before income taxes | 20,747 | 18,418 | 19,915 | 13,724 | 15,505 | 59,080 | 43,522 | ||||||||||||||||||||
| Income tax expense | 4,066 | 3,723 | 4,630 | 19,924 | 4,766 | 12,419 | 14,306 | ||||||||||||||||||||
| Net income (loss) | $ | 16,681 | $ | 14,695 | $ | 15,285 | $ | (6,200 | ) | $ | 10,739 | $ | 46,661 | $ | 29,216 | ||||||||||||
| Net income (loss) attributable to noncontrolling interest | (1 | ) | 7 | (1 | ) | — | — | 5 | — | ||||||||||||||||||
| Net income (loss) attributable to Bryn Mawr Bank Corporation | $ | 16,682 | $ | 14,688 | $ | 15,286 | $ | (6,200 | ) | $ | 10,739 | $ | 46,656 | $ | 29,216 | ||||||||||||
| Per share data: | |||||||||||||||||||||||||||
| Weighted average shares outstanding | 20,270,706 | 20,238,852 | 20,202,969 | 17,632,697 | 17,023,046 | 20,237,757 | 16,987,499 | ||||||||||||||||||||
| Dilutive common shares | 167,670 | 174,726 | 247,525 | 211,975 | 230,936 | 206,318 | 254,728 | ||||||||||||||||||||
| Weighted average diluted shares | 20,438,376 | 20,413,578 | 20,450,494 | 17,844,672 | 17,253,982 | 20,444,075 | 17,242,227 | ||||||||||||||||||||
| Basic earnings (loss) per common share | $ | 0.82 | $ | 0.73 | $ | 0.76 | $ | (0.35 | ) | $ | 0.63 | $ | 2.31 | $ | 1.72 | ||||||||||||
| Diluted earnings (loss) per common share | $ | 0.82 | $ | 0.72 | $ | 0.75 | $ | (0.35 | ) | $ | 0.62 | $ | 2.28 | $ | 1.69 | ||||||||||||
| Dividends paid or accrued per share | $ | 0.25 | $ | 0.22 | $ | 0.22 | $ | 0.22 | $ | 0.22 | $ | 0.69 | $ | 0.64 | |||||||||||||
| Effective tax rate | 19.60 | % | 20.21 | % | 23.25 | % | 145.18 | % | 30.74 | % | 21.02 | % | 32.87 | % | |||||||||||||
Bryn Mawr Bank Corporation
Tax-Equivalent Net Interest Margin (unaudited)
(dollars in thousands, except per share data)
| For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| September 30, 2018 |
June 30, 2018 |
March 31, 2018 |
December 31, 2017 |
September 30, 2017 |
September 30, 2018 |
September 30, 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 | 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 | $ | 37,467 | $ | 64 | 0.68 | % | $ | 37,215 | $ | 64 | 0.69 | % | $ | 38,044 | $ | 53 | 0.56 | % | $ | 43,962 | $ | 37 | 0.33 | % | $ | 26,628 | $ | 36 | 0.54 | % | $ | 37,573 | $ | 181 | 0.64 | % | $ | 30,807 | $ | 137 | 0.59 | % | |||||||||||||||
| Investment securities – available for sale: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Taxable | 514,360 | 2,960 | 2.28 | % | 514,966 | 2,888 | 2.25 | % | 498,718 | 2,675 | 2.18 | % | 465,393 | 2,394 | 2.04 | % | 427,106 | 2,160 | 2.01 | % | 509,405 | 8,523 | 2.24 | % | 391,082 | 5,753 | 1.97 | % | |||||||||||||||||||||||||||||
| Tax-exempt | 16,056 | 83 | 2.05 | % | 18,215 | 93 | 2.05 | % | 20,501 | 100 | 1.98 | % | 22,640 | 127 | 2.23 | % | 25,268 | 134 | 2.10 | % | 18,241 | 276 | 2.02 | % | 28,552 | 448 | 2.10 | % | |||||||||||||||||||||||||||||
| Total investment securities – available for sale | 530,416 | 3,043 | 2.28 | % | 533,181 | 2,981 | 2.24 | % | 519,219 | 2,775 | 2.17 | % | 488,033 | 2,521 | 2.05 | % | 452,374 | 2,294 | 2.01 | % | 527,646 | 8,799 | 2.23 | % | 419,634 | 6,201 | 1.98 | % | |||||||||||||||||||||||||||||
| Investment securities – held to maturity | 8,378 | 5 | 0.24 | % | 7,866 | 13 | 0.66 | % | 7,913 | 12 | 0.62 | % | 7,510 | 11 | 0.58 | % | 6,044 | 11 | 0.72 | % | 8,054 | 30 | 0.50 | % | 4,984 | 23 | 0.62 | % | |||||||||||||||||||||||||||||
| Investment securities – trading | 8,204 | 30 | 1.45 | % | 8,202 | 22 | 1.08 | % | 8,339 | 21 | 1.02 | % | 4,425 | 25 | 2.24 | % | 4,282 | 8 | 0.74 | % | 8,248 | 73 | 1.18 | % | 4,105 | 29 | 0.94 | % | |||||||||||||||||||||||||||||
| Loans and leases * | 3,379,699 | 42,214 | 4.96 | % | 3,353,339 | 41,782 | 5.00 | % | 3,291,212 | 40,754 | 5.02 | % | 2,805,255 | 32,403 | 4.58 | % | 2,680,317 | 31,058 | 4.60 | % | 3,341,741 | 124,750 | 4.99 | % | 2,617,658 | 88,989 | 4.55 | % | |||||||||||||||||||||||||||||
| Total interest-earning assets | 3,964,164 | 45,356 | 4.54 | % | 3,939,803 | 44,862 | 4.57 | % | 3,864,727 | 43,615 | 4.58 | % | 3,349,185 | 34,997 | 4.15 | % | 3,169,645 | 33,407 | 4.18 | % | 3,923,262 | 133,833 | 4.56 | % | 3,077,188 | 95,379 | 4.14 | % | |||||||||||||||||||||||||||||
| Cash and due from banks | 7,587 | < td colspan="2" /> | 7,153 | 10,698 | 6,855 | 15,709 | 8,468 | 15,462 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Less: allowance for loan and lease losses | (19,467 | ) | (18,043 | ) | (17,628 | ) | (17,046 | ) | (16,564 | ) | (18,386 | ) | (17,227 | ) | |||||||||||||||||||||||||||||||||||||||||||
| Other assets | 423,864 | 415,628 | 388,383 | 301,673 | 273,116 | 418,261 | 265,061 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total assets | $ | 4,376,148 | $ | 4,344,541 | $ | 4,246,180 | $ | 3,640,667 | $ | 3,441,906 | $ | 4,331,605 | $ | 3,340,484 | |||||||||||||||||||||||||||||||||||||||||||
| Liabilities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest-bearing deposits: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Savings, NOW and market rate deposits | $ | 1,695,214 | $ | 2,425 | 0.57 | % | $ | 1,722,328 | $ | 2,073 | 0.48 | % | $ | 1,676,733 | $ | 1,479 | 0.36 | % | $ | 1,410,461 | $ | 897 | 0.25 | % | $ | 1,359,293 | $ | 823 | 0.24 | % | $ | 1,719,004 | $ | 5,977 | 0.46 | % | $ | 1,374,494 | $ | 2,392 | 0.23 | % | |||||||||||||||
| Wholesale deposits | 256,347 | 1,329 | 2.06 | % | 233,714 | 973 | 1.67 | % | 231,289 | 733 | 1.29 | % | 262,643 | 822 | 1.24 | % | 190,849 | 548 | 1.14 | % | 221,073 | 3,035 | 1.84 | % | 163,086 | 1,243 | 1.02 | % | |||||||||||||||||||||||||||||
| Retail time deposits | 541,652 | 1,779 | 1.30 | % | 533,254 | 1,453 | 1.09 | % | 527,469 | 1,260 | 0.97 | % | 358,066 | 1,020 | 1.13 | % | 321,352 | 827 | 1.02 | % | 534,177 | 4,492 | 1.12 | % | 321,608 | 2,374 | 0.99 | % | |||||||||||||||||||||||||||||
| Total interest-bearing deposits | 2,493,213 | 5,533 | 0.88 | % | 2,489,296 | 4,499 | 0.72 | % | 2,435,491 | 3,472 | 0.58 | % | 2,031,170 | 2,739 | 0.53 | % | 1,871,494 | 2,198 | 0.47 | % | 2,474,254 | 13,504 | 0.73 | % | 1,859,188 | 6,009 | 0.43 | % | |||||||||||||||||||||||||||||
| Borrowings: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Short-term borrowings | 208,201 | 1,096 | 2.09 | % | 205,323 | 985 | 1.92 | % | 172,534 | 630 | 1.48 | % | 180,650 | 579 | 1.27 | % | 182,845 | 547 | 1.19 | % | 195,483 | 2,711 | 1.85 | % | 110 ,268 |
811 | 0.98 | % | |||||||||||||||||||||||||||||
| Long-term FHLB advances | 81,460 | 394 | 1.92 | % | 102,023 | 490 | 1.93 | % | 123,920 | 562 | 1.84 | % | 134,605 | 595 | 1.75 | % | 155,918 | 645 | 1.64 | % | 102,312 | 1,446 | 1.89 | % | 169,900 | 2,025 | 1.59 | % | |||||||||||||||||||||||||||||
| Subordinated notes | 98,457 | 1,144 | 4.61 | % | 98,463 | 1,143 | 4.66 | % | 98,430 | 1,143 | 4.71 | % | 43,844 | 518 | 4.69 | % | 29,564 | 370 | 98,450 | 3,430 | 4.66 | % | 29,550 | 1,110 | 5.02 | % | |||||||||||||||||||||||||||||||
| Jr. subordinated debt | 21,511 | 337 | 6.22 | % | 21,470 | 321 | 6.00 | % | 21,430 | 288 | 5.45 | % | 3,957 | 46 | 4.61 | % | — | — | 21,470 | 946 | 5.89 | % | — | — | — | % | |||||||||||||||||||||||||||||||
| Total borrowings | 409,629 | 2,971 | 2.88 | % | 427,279 | 2,939 | 2.76 | % | 416,314 | 2,623 | 2.56 | % | 363,056 | 1,738 | 1.90 | % | 368,327 | 1,562 | 1.68 | % | 417,715 | 8,533 | 2.73 | % | 309,718 | 3,946 | 1.70 | % | |||||||||||||||||||||||||||||
| Total interest-bearing liabilities | 2,902,842 | 8,504 | 1.16 | % | 2,916,575 | 7,438 | 1.02 | % | 2,851,805 | 6,095 | 0.87 | % | 2,394,226 | 4,477 | 0.74 | % | 2,239,821 | 3,760 | 0.67 | % | 2,891,969 | 22,037 | 1.02 | % | 2,168,906 | 9,955 | 0.61 | % | |||||||||||||||||||||||||||||
| Noninterest-bearing deposits | 866,314 | 841,676 | 835,476 | 771,519 | 764,562 | 849,247 | 744,178 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Other liabilities | 59,085 | 52,389 | 32,465 | 47,604 | 40,166 | 53,763 | 37,582 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total noninterest-bearing liabilities | 925,399 | 894,065 | 867,941 | 819,123 | 804,728 | 903,010 | 781,760 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total liabilities | 3,828,241 | 3,810,640 | 3,719,746 | 3,213,349 | 3,044,549 | 3,794,979 | 2,950,666 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Shareholders’ equity | 547,907 | 533,901 | 526,434 | 427,318 | 397,357 | 536,626 | 389,818 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 4,376,148 | 4,344,541 | $ | 4,246,180 | $ | 3,640,667 | $ | 3,441,906 | $ | 4,331,605 | $ | 3,340,484 | ||||||||||||||||||||||||||||||||||||||||||||
| Net interest spread | 3.38 | % | 3.55 | % | 3.71 | % | 3.41 | % | 3.51 | % | 3.54 | % | 3.53 | % | |||||||||||||||||||||||||||||||||||||||||||
| Effect of noninterest-bearing sources | 0.31 | % | 0.26 | % | 0.23 | % | 0.21 | % | 0.20 | % | 0.27 | % | 0.18 | % | |||||||||||||||||||||||||||||||||||||||||||
| Tax-equivalent net interest margin | $ | 36,852 | 3.69 | % | $ | 37,424 | 3.81 | % | $ | 37,520 | 3.94 | % | $ | 30,520 | 3.62 | % | $ | 29,647 | 3.71 | % | $ | 111,796 | 3.81 | % | $ | 85,424 | 3.71 | % | |||||||||||||||||||||||||||||
| Tax-equivalent adjustment | $ | 123 | 0.01 | % | $ | 108 | 0.01 | % | $ | 81 | 0.01 | % | $ | 199 | 0.02 | % | $ | 209 | 0.03 | % | $ | 312 | 0.01 | % | $ | 618 | 0.03 | % | |||||||||||||||||||||||||||||
| * 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
Tax-Equivalent Net Interest Margin (unaudited)
(dollars in thousands, except per share data)
Supplemental Information Regarding Accretion of Fair Value Marks
| For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||||
| September 30, 2018 |
June 30, 2018 |
March 31, 2018 |
December 31, 2017 |
September 30, 2017 |
September 30, 2018 |
September 30, 2017 |
|||||||||||||||||||||||||||||||||||||
| (dollars in thousands) | Interest | Inc. / (Dec.) | Effect on Yield or Rate | Inc. / (Dec.) | Effect on Yield or Rate | Inc. / (Dec.) | Effect on Yield or Rate | Inc. / (Dec.) | Effect on Yield or Rate | Inc. / (Dec.) | Effect on Yield or Rate | Inc. / (Dec.) | Effect on Yield or Rate | Inc. / (Dec.) | Effect on Yield or Rate | ||||||||||||||||||||||||||||
| Loans and leases | Income | $ | 1,464 | 0.17 | % | $ | 1,945 | 0.23 | % | $ | 2,702 | 0.33 | % | $ | 276 | 0.04 | % | $ | 708 | 0.10 | % | $ | 6,111 | 0.24 | % | $ | 1,836 | 0.09 | % | ||||||||||||||
| Retail time deposits | Expense | (311 | ) | (0.23 | )% | (339 | ) | (0.25 | )% | (380 | ) | (0.29 | )% | (13 | ) | (0.01 | )% | (15 | ) | (0.02 | )% | (1,030 | ) | (0.26 | )% | (52 | ) | (0.02 | )% | ||||||||||||||
| Long-term FHLB advances | Expense | 32 | 0.16 | % | 25 | 0.10 | % | 15 | 0.05 | % | (31 | ) | (0.09 | )% | (30 | ) | (0.08 | )% | 72 | 0.09 | % | — | — | % | |||||||||||||||||||
| Jr. subordinated debt | Expense | 41 | 0.76 | % | 41 | 0.77 | % | 40 | 0.76 | % | — | — | % | — | — | % | 122 | 0.76 | % | (91 | ) | (0.07 | )% | ||||||||||||||||||||
| Net interest income from fair value marks | $ | 1,702 | $ | 2,218 | $ | 3,027 | $ | 320 | $ | 753 | $ | 6,947 | $ | 1,979 | |||||||||||||||||||||||||||||
| Purchase accounting effect on tax-equivalent margin | 0.17 | % | 0.23 | % | 0.32 | % | 0.04 | % | 0.09 | % | 0.24 | % | 0.09 | % | |||||||||||||||||||||||||||||
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 | As of or For the Nine Months Ended | ||||||||||||||||||||||||||
| September 30, 2018 | June 30, 2018 |
March 31, 2018 |
December 31, 2017 | September 30, 2017 | September 30, 2018 | September 30, 2017 | |||||||||||||||||||||
| Reconciliation of Net Income to Net Income (core): | |||||||||||||||||||||||||||
| Net income (loss) attributable to BMBC (a GAAP measure) | $ | 16,682 | $ | 14,688 | $ | 15,286 | $ | (6,200 | ) | $ | 10,739 | $ | 46,656 | $ | 29,216 | ||||||||||||
| Less: Tax-effected non-core noninterest income: | |||||||||||||||||||||||||||
| (Gain) loss on sale of investment securities available for sale | — | — | (6 | ) | (18 | ) | (47 | ) | (6 | ) | (47 | ) | |||||||||||||||
| Add: Tax-effected non-core noninterest expense items: | |||||||||||||||||||||||||||
| Due diligence, merger-related and merger integration expenses | 307 | 2,412 | 3,412 | 2,280 | 553 | 6,131 | 1,688 | ||||||||||||||||||||
| Add: Federal income tax expense related to re-measurement of net deferred tax asset due to tax reform legislation | 151 | (69 | ) | 590 | 15,193 | — | 672 | — | |||||||||||||||||||
| Net income (core) (a non-GAAP measure) | $ | 17,140 | $ | 17,031 | $ | 19,282 | $ | 11,255 | $ | 11,245 | $ | 53,453 | $ | 30,857 | |||||||||||||
| Calculation of Basic and Diluted Earnings per Common Share (core): | |||||||||||||||||||||||||||
| Weighted average common shares outstanding | 20,270,706 | 20,238,852 | 20,202,969 | 17,632,697 | 17,023,046 | 20,237,757 | 16,987,499 | ||||||||||||||||||||
| Dilutive common shares | 167,670 | 174,726 | 247,525 | 211,975 | 230,936 | 206,318 | 254,728 | ||||||||||||||||||||
| Weighted average diluted shares | 20,438,376 | 20,413,578 | 20,450,494 | 17,844,672 | 17,253,982 | 20,444,075 | 17,242,227 | ||||||||||||||||||||
| Basic earnings per common share (core) (a non-GAAP measure) | $ | 0.85 | $ | 0.84 | $ | 0.95 | $ | 0.64 | $ | 0.66 | $ | 2.64 | $ | 1.82 | |||||||||||||
| Diluted earnings per common share (core) (a non-GAAP measure) | $ | 0.84 | $ | 0.83 | $ | 0.94 | $ | 0.63 | $ | 0.65 | $ | 2.61 | $ | 1.79 | |||||||||||||
| Calculation of Return on Average Tangible Equity: | |||||||||||||||||||||||||||
| Net income (loss) attributable to BMBC (a GAAP measure) | $ | 16,682 | $ | 14,688 | $ | 15,286 | $ | (6,200 | ) | $ | 10,739 | $ | 46,656 | $ | 29,216 | ||||||||||||
| Add: Tax-effected amortization and impairment of intangible assets | 705 | 702 | 694 | 440 | 440 | 2,101 | 1,337 | ||||||||||||||||||||
| Net tangible income (numerator) | $ | 17,387 | $ | 15,390 | $ | 15,980 | $ | (5,760 | ) | $ | 11,179 | $ | 48,757 | $ | 30,553 | ||||||||||||
| Average shareholders’ equity | $ | 547,907 | $ | 533,901 | $ | 526,434 | $ | 427,318 | $ | 397,357 | $ | 536,626 | $ | 389,818 | |||||||||||||
| Less: Average Noncontrolling interest | 678 | 685 | 683 | 126 | — | 684 | — | ||||||||||||||||||||
| Less: Average goodwill and intangible assets | (207,880 | ) | (208,039 | ) | (205,529 | ) | (142,652 | ) | (128,917 | ) | (207,158 | ) | (126,794 | ) | |||||||||||||
| Net average tangible equity (denominator) | $ | 340,705 | $ | 326,547 | $ | 321,588 | $ | 284,792 | $ | 268,440 | $ | 330,152 | $ | 263,024 | |||||||||||||
| Return on tangible equi ty (a non-GAAP measure) |
20.25 | % | 18.90 | % | 20.15 | % | (8.02 | )% | 16.52 | % | 19.74 | % | 15.53 | % | |||||||||||||
| Calculation of Return on Average Tangible Equity (core): | |||||||||||||||||||||||||||
| Net income (core) (a non-GAAP measure) | $ | 17,140 | $ | 17,031 | $ | 19,282 | $ | 11,255 | $ | 11,245 | $ | 53,453 | $ | 30,857 | |||||||||||||
| Add: Tax-effected amortization and impairment of intangible assets | 705 | 702 | 694 | 440 | 440 | 2,101 | 1,337 | ||||||||||||||||||||
| Net tangible income (core) (numerator) | $ | 17,845 | $ | 17,733 | $ | 19,976 | $ | 11,695 | $ | 11,685 | $ | 55,554 | $ | 32,194 | |||||||||||||
| Average shareholders’ equity | $ | 547,907 | $ | 533,901 | $ | 526,434 | $ | 427,318 | $ | 397,357 | $ | 536,626 | $ | 389,818 | |||||||||||||
| Less: Average Noncontrolling interest | 678 | 685 | 683 | 126 | — | 684 | — | ||||||||||||||||||||
| Less: Average goodwill and intangible assets | (207,880 | ) | (208,039 | ) | (205,529 | ) | (142,652 | ) | (128,917 | ) | (207,158 | ) | (126,794 | ) | |||||||||||||
| Net average tangible equity (denominator) | $ | 340,705 | $ | 326,547 | $ | 321,588 | $ | 284,792 | $ | 268,440 | $ | 330,152 | $ | 263,024 | |||||||||||||
| Return on tangible equity (core) (a non-GAAP measure) | 20.78 | % | 21.78 | % | 25.19 | % | 16.29 | % | 17.27 | % | 22.50 | % | 16.36 | % | |||||||||||||
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 | As of or For the Nine Months Ended | ||||||||||||||||||||||||
| September 30, 2018 | June 30, 2018 |
March 31, 2018 |
December 31, 2017 | September 30, 2017 | September 30, 2018 | September 30, 2017 | |||||||||||||||||||
| Calculation of Tangible Equity Ratio (BMBC): | |||||||||||||||||||||||||
| Total shareholders’ equity | $ | 551,425 | $ | 542,503 | $ | 533,061 | $ | 528,119 | $ | 401,892 | |||||||||||||||
| Less: Noncontrolling interest | 678 | 677 | 684 | 683 | — | ||||||||||||||||||||
| Less: Goodwill and intangible assets | (208,165 | ) | (208,139 | ) | (207,287 | ) | (205,855 | ) | (128,534 | ) | |||||||||||||||
| Net tangible equity (numerator) | $ | 343,938 | $ | 335,041 | $ | 326,458 | $ | 322,947 | $ | 273,358 | |||||||||||||||
| Total assets | $ | 4,388,442 | $ | 4,394,203 | $ | 4,300,376 | $ | 4,449,720 | $ | 3,476,821 | |||||||||||||||
| Less: Goodwill and intangible assets | (208,165 | ) | (208,139 | ) | (207,287 | ) | (205,855 | ) | (128,534 | ) | |||||||||||||||
| Tangible assets (denominator) | $ | 4,180,277 | $ | 4,186,064 | $ | 4,093,089 | $ | 4,243,865 | $ | 3,348,287 | |||||||||||||||
| Tangible equity ratio (BMBC)(1) | 8.23 | % | 8.00 | % | 7.98 | % | 7.61 | % | 8.16 | % | |||||||||||||||
| Calculation of Tangible Equity Ratio (BMTC): | |||||||||||||||||||||||||
| Total shareholders’ equity | $ | 582,698 | $ | 582,354 | $ | 569,670 | $ | 559,581 | $ | 398,431 | |||||||||||||||
| Less: Noncontrolling interest | 678 | 677 | 684 | 683 | — | ||||||||||||||||||||
| Less: Goodwill and intangible assets | (195,337 | ) | (195,245 | ) | (194,316 | ) | (192,807 | ) | (115,410 | ) | |||||||||||||||
| Net tangible equity (numerator) | $ | 388,039 | $ | 387,786 | $ | 376,038 | $ | 367,457 | $ | 283,021 | |||||||||||||||
| Total assets | $ | 4,372,590 | $ | 4,378,508 | $ | 4,284,334 | $ | 4,430,528 | $ | 3,459,996 | |||||||||||||||
| Less: Goodwill and intangible assets | (195,337 | ) | (195,245 | ) | (194,316 | ) | (192,807 | ) | (115,410 | ) | |||||||||||||||
| Tangible assets (denominator) | $ | 4,177,253 | $ | 4,183,263 | $ | 4,090,018 | $ | 4,237,721 | $ | 3,344,586 | |||||||||||||||
| Tangible equity ratio (BMTC)(1) | 9.29 | % | 9.27 | % | 9.19 | % | 8.67 | % | 8.46 | % | |||||||||||||||
| Calculation of Return on Average Assets (core) | |||||||||||||||||||||||||
| Return on average assets (GAAP) | 1.51 | % | 1.36 | % | 1.46 | % | (0.68 | )% | 1.24 | % | 1.44 | % | 1.17 | % | |||||||||||
| Effect of adjustment to GAAP net income to core net income | 0.04 | % | 0.21 | % | 0.38 | % | 1.91 | % | 0.06 | % | 0.21 | % | 0.07 | % | |||||||||||
| Return on average assets (core) | 1.55 | % | 1.57 | % | 1.84 | % | 1.23 | % | 1.30 | % | 1.65 | % | 1.24 | % | |||||||||||
| Calculation of Return on Average Equity (core) | |||||||||||||||||||||||||
| Return on average equity (GAAP) | 12.08 | % | 11.03 | % | 11.78 | % | (5.76 | )% | 10.72 | % | 11.62 | % | 10.02 | % | |||||||||||
| Effect of adjustment to GAAP net income to core net income | 0.33 | % | 1.76 | % | 3.07 | % | 16.21 | % | 0.51 | % | 1.70 | % | 0.56 | % | |||||||||||
| Return on average equity (core) | 12.41 | % | 12.79 | % | 14.85 | % | 10.45 | % | 11.23 | % | 13.32 | % | 10.58 | % | |||||||||||
| Calculation of Tax-equivalent net interest margin adjusting for the impact of purchase accounting | |||||||||||||||||||||||||
| Tax-equivalent net interest margin | 3.69 | % | 3.81 | % | 3.94 | % | 3.62 | % | 3.71 | % | 3.81 | % | 3.71 | % | |||||||||||
| Effect of fair value marks | 0.17 | % | 0.23 | % | 0.32 | % | 0.04 | % | 0.09 | % | 0.24 | % | 0.09 | % | |||||||||||
| Tax-equivalent net interest margin adjusting for the impact of purchase accounting | 3.52 | % | 3.58 | % | 3.62 | % | 3.58 | % | 3.62 | % | 3.57 | % | 3.62 | % | |||||||||||
(1) Capital Ratios for the current quarter are to be considered preliminary until the Call Reports are filed.
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 | As of or For the Nine Months Ended | ||||||||||||||||||||||||||
| September 30, 2018 | June 30, 2018 |
March 31, 2018 |
December 31, 2017 | September 30, 2017 | September 30, 2018 | September 30, 2017 | |||||||||||||||||||||
| Calculation of Efficiency Ratio: | |||||||||||||||||||||||||||
| Noninterest expense | $ | 33,592 | $ | 35,836 | $ | 36,030 | $ | 31,056 | $ | 28,184 | $ | 105,458 | $ | 83,339 | |||||||||||||
| Less: certain noninterest expense items*: | |||||||||||||||||||||||||||
| Amortization of intangibles | (891 | ) | (889 | ) | (879 | ) | (677 | ) | (677 | ) | (2,659 | ) | (2,057 | ) | |||||||||||||
| Due diligence, merger-related and merger integration expenses | (389 | ) | (3,053 | ) | (4,319 | ) | (3,507 | ) | (850 | ) | (7,761 | ) | (2,597 | ) | |||||||||||||
| Noninterest expense (adjusted) (numerator) | $ | 32,312 | $ | 31,894 | $ | 30,832 | $ | 26,872 | $ | 26,657 | $ | 95,038 | $ | 78,685 | |||||||||||||
| Noninterest income | $ | 18,274 | $ | 20,075 | $ | 19,536 | $ | 15,536 | $ | 15,584 | $ | 57,885 | $ | 43,596 | |||||||||||||
| Less: non-core noninterest income items: | |||||||||||||||||||||||||||
| Loss (gain) on sale of investment securities available for sale | — | — | (7 | ) | (28 | ) | (72 | ) | (7 | ) | (73 | ) | |||||||||||||||
| Noninterest income (core) | $ | 18,274 | $ | 20,075 | $ | 19,529 | $ | 15,508 | $ | 15,512 | $ | 57,878 | $ | 43,523 | |||||||||||||
| Net interest income | 36,729 | 37,316 | 37,439 | 30,321 | 29,438 | 111,484 | 84,806 | ||||||||||||||||||||
| Noninterest income (core) and net interest income (denominator) | $ | 55,003 | $ | 57,391 | $ | 56,968 | $ | 45,829 | $ | 44,950 | $ | 169,362 | $ | 128,329 | |||||||||||||
| Efficiency ratio | 58.75 | % | 55.57 | % | 54.12 | % | 58.64 | % | 59.30 | % | 56.12 | % | 61.32 | % | |||||||||||||
| Supplemental Loan and Allowance Information Used to Calculate Non-GAAP Measures | |||||||||||||||||||||||||||
| Total Allowance | $ | 18,684 | $ | 19,398 | $ | 17,662 | $ | 17,525 | $ | 17,004 | |||||||||||||||||
| Less: Allowance on acquired loans | 72 | 217 | 92 | 50 | 47 | ||||||||||||||||||||||
| Allowance on originated loans and leases | $ | 18,612 | $ | 19,181 | $ | 17,570 | $ | 17,475 | $ | 16,957 | |||||||||||||||||
| Total Allowance | $ | 18,684 | $ | 19,398 | $ | 17,662 | $ | 17,525 | $ | 17,004 | |||||||||||||||||
| Loan mark on acquired loans | 24,964 | 26,705 | 32,260 | 34,790 | 10,223 | ||||||||||||||||||||||
| Total Allowance + Loan mark | $ | 43,648 | $ | 46,103 | $ | 49,922 | $ | 52,315 | $ | 27,227 | |||||||||||||||||
| Total Portfolio loans and leases | $ | 3,381,475 | $ | 3,389,501 | $ | 3,305,795 | $ | 3,285,858 | $ | 2,677,345 | |||||||||||||||||
| Less: Originated loans and leases | 2,752,160 | 2,700,815 | 2,564,827 | 2,487,296 | 2,433,054 | ||||||||||||||||||||||
| Net acquired loans | $ | 629,315 | $ | 688,686 | $ | 740,968 | $ | 798,562 | $ | 244,291 | |||||||||||||||||
| Add: Loan mark on acquired loans | 24,964 | 26,705 | 32,260 | 34,790 | 10,223 | ||||||||||||||||||||||
| Gross acquired loans (excludes loan mark) | $ | 654,279 | $ | 715,391 | $ | 773,228 | $ | 833,352 | $ | 254,514 | |||||||||||||||||
| Originated loans and leases | 2,752,160 | 2,700,815 | 2,564,827 | 2,487,296 | 2,433,054 | ||||||||||||||||||||||
| Total Gross portfolio loans and leases | $ | 3,406,439 | $ | 3,416,206 | $ | 3,338,055 | $ | 3,320,648 | $ | 2,687,568 | |||||||||||||||||
- 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.
| FOR MORE INFORMATION CONTACT: | Frank Leto, President, CEO | |
| 610-581-4730 | ||
| Mike Harrington, CFO | ||
| 610-526-2466 | ||