Bryn Mawr Bank Corporation (NASDAQ: BMTC) (the “Corporation”),
parent of The Bryn Mawr Trust Company (the “Bank”) today reported
net income of $10.7 million, or $0.53 diluted earnings per share
for the three months ended March 31, 2019, as compared to net
income of $17.1 million, or $0.84 diluted earnings per share, for
the three months ended December 31, 2018, and $15.3 million, or
$0.75 diluted earnings per share, for the three months ended March
31, 2018.
On a non-GAAP basis, core net income, which excludes one-time
costs associated with our voluntary Years of Service Incentive
Program (the “Incentive Program”), income tax charges incurred in
connection with the Tax Cuts and Jobs Act ("Tax Reform"), due
diligence and merger-related expenses and other non-core income and
expense items, as detailed in the appendix to this earnings
release, was $14.2 million, or $0.70 diluted earnings per share,
for the three months ended March 31, 2019, as compared to $17.2
million, or $0.84 diluted earnings per share, for the three months
ended December 31, 2018, and $19.3 million, or $0.94 diluted
earnings per share, for the three months ended March 31, 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.
“We are excited with the start of 2019 as we continue to execute
upon our long-term strategic goals,” commented Frank Leto,
President and Chief Executive Officer, continuing, “Part of our
long-term plan is ensuring BMT’s sustainability through proper
succession planning. To facilitate the execution of this goal, the
Board and executive management team created a one-time, voluntary
Years of Service Incentive Program to reward certain long-tenured
employees with enhanced benefits while providing BMT with the
ability to manage a controlled transition process related to the
leadership and knowledge held by individuals who chose to
participate. We are proud to have been able to offer this Incentive
Program, recognizing that it is our people who have laid the
foundation on which we have succeeded for the past 130 years, and
it is our people who will enable us to continue to grow and succeed
in the future.”
Mr. Leto then continued, “Our first quarter financials remained
strong with loan growth of $96 million, or 11% on an annualized
basis from year-end, and wealth assets under management approaching
$15 billion. Our capital markets team also continues to provide
strong fee-based revenue, while credit quality remains strong with
the first quarter provision expense primarily impacted by a single
credit. With regard to the Incentive Program, we expect to realize
long-term savings and recoup the cost of the Incentive Program in
approximately three years. I am also pleased to announce that the
Board of Directors has authorized a new stock repurchase program
under which the Corporation can repurchase up to 1,000,000 shares
from time to time at an aggregate purchase price not to exceed $45
million (the "New Repurchase Program"). The New Repurchase Program
will become effective upon the completion of the Corporation’s
existing 2015 stock repurchase program.”
The Board of Directors of the Corporation declared a quarterly
dividend of $0.25 per share, payable June 1, 2019 to shareholders
of record as of May 1, 2019.
SIGNIFICANT ITEMS OF NOTE
Results of Operations – First Quarter 2019 Compared to
Fourth Quarter 2018
- Net income for the three months ended March 31, 2019 was $10.7
million, as compared to net income of $17.1 million for the three
months ended December 31, 2018. Net interest income for the three
months ended March 31, 2019 was $37.6 million, a decrease of $340
thousand over the linked quarter. The provision for loan and lease
losses (the “Provision”) for the three months ended March 31, 2019
increased $1.4 million as compared to the fourth quarter of 2018.
Total noninterest income increased $1.2 million, total noninterest
expense increased $4.9 million, and income tax expense increased
$1.0 million for the three months ended March 31, 2019, as compared
to the three months ended December 31, 2018. During the first
quarter of 2019, the Corporation adopted the Incentive Program
which offers certain benefits to eligible employees who meet the
Incentive Program requirements and voluntarily exit from service
with the Corporation, the Bank or one of their subsidiaries.
Noninterest expense for the first quarter of 2019 included a
pre-tax, non-recurring, charge of $4.5 million related to the
Incentive Program.On a non-GAAP basis, core net income, which
excludes one-time costs associated with the Incentive Program,
income tax charges incurred in connection with Tax Reform, due
diligence and merger-related expenses and other non-core income and
expense items, as detailed in the appendix to this earnings
release, was $14.2 million, or $0.70 per diluted share, for the
three months ended March 31, 2019, as compared to $17.2 million or
$0.84 per diluted share, for the three months ended December 31,
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 March 31, 2019
was $37.6 million, a decrease of $340 thousand over the linked
quarter. Tax-equivalent net interest income for the three months
ended March 31, 2019 was $37.8 million, a decrease of $338 thousand
over the linked quarter. Tax-equivalent net interest income for the
first quarter of 2019 was impacted by the accretion of purchase
accounting fair value marks of $2.1 million as compared to $2.7
million for the linked quarter. Excluding the effects of these
purchase accounting fair value marks, the adjusted tax-equivalent
net interest income for the three months ended March 31, 2019 was
$35.6 million, an increase of $213 thousand over the linked
quarter. A reconciliation of this and other non-GAAP to GAAP
performance measures is included in the appendix to this earnings
release. Items contributing to the increase adjusted for purchase
accounting included increases of $1.1 million and $388 thousand in
tax-equivalent interest and fees earned on loans and leases and
interest earned on available for sale investment securities,
respectively, partially offset by an increase of $1.3 million in
interest paid on deposits for the three months ended March 31, 2019
as compared to the linked quarter ended December 31,
2018.Tax-equivalent interest and fees earned on loans and leases
for the three months ended March 31, 2019 increased $571 thousand
over the linked quarter. Average loans and leases for the three
months ended March 31, 2019 increased $78.3 million over the linked
quarter and experienced a 6 basis point increase in tax-equivalent
yield.Tax-equivalent interest income on available for sale
investment securities increased $388 thousand for the first quarter
of 2019 as compared to the linked quarter. Average available for
sale investment securities increased by $16.2 million over the
linked quarter and experienced a 27 basis point tax-equivalent
yield increase.Interest expense on deposits for the three months
ended March 31, 2019 increased $1.0 million over the linked
quarter. Average interest-bearing deposits increased $71.8 million
coupled with a 16 basis point increase in the rate paid on deposits
as compared to the linked quarter. The increase in interest on
deposits was related to the competitive dynamics in the markets in
which we operate and certain promotional interest rates offered
during the quarter.Interest expense on short-term borrowings for
the three months ended March 31, 2019 increased $262 thousand over
the linked quarter. Average short-term borrowings increased $29.2
million coupled with a 33 basis point increase in the rate paid on
short-term borrowings as compared to the linked quarter.
- The tax-equivalent net interest margin was 3.75% for the three
months ended March 31, 2019 as compared to 3.79% for the linked
quarter. Adjusting for the impact of the accretion of purchase
accounting fair value marks, the adjusted tax-equivalent net
interest margin was 3.54% for the three months ended March 31, 2019
as compared to 3.52% for the linked quarter. A reconciliation of
this and other non-GAAP to GAAP performance measures is included in
the appendix to this earnings release.
- Noninterest income of $19.3 million for the three months ended
March 31, 2019 increased $1.2 million as compared to the linked
quarter. Contributing to the increase were increases of $1.8
million, $852 thousand, and $213 thousand in other operating
income, capital markets revenue, and insurance commissions,
respectively, partially offset by decreases of $1.3 million and
$625 thousand in net gain on sale of loans and fees for wealth
management services, respectively. The $1.8 million increase in
other operating income was primarily due to a $1.6 million increase
in gains on trading securities over the linked quarter due to
market fluctuations affecting the Corporation's executive and
director deferred compensation plan assets.
- Noninterest expense of $39.7 million for the three months ended
March 31, 2019 increased $4.9 million as compared to $34.8 million
for the fourth quarter of 2018. The increase on a linked quarter
basis was primarily due to increases of $3.0 million, $1.2 million,
and $1.0 million in salaries and wages, employee benefits, and
other operating expenses, respectively. The linked quarter increase
in salaries and wages and employee benefits was largely driven by
the expenses from the Incentive Program.
- The Provision increased $1.3 million for the three months ended
March 31, 2019 to $3.7 million, as compared to $2.4 million for the
fourth quarter of 2018. During the first quarter of 2019, portfolio
loans and leases increased $96.4 million. In addition, net loan and
lease charge-offs increased by $926 thousand for the first quarter
of 2019, as compared to the previous quarter. The 2.8% increase in
loan and lease volume and 57.2% increase in net charge-offs were
the primary drivers for the increase in the Provision on a
linked-quarter basis. The increase in net charge-offs was primarily
a result of the partial charge-off of a single commercial
credit. Nonperforming loans and leases as of March 31, 2019
totaled $19.3 million, an increase of $6.5 million from December
31, 2018. The increase in nonperforming loans was largely due to
real estate collateralized loans for which management performs an
impairment analysis. All nonperforming loans are carried at their
net realizable value.
- The effective tax rate for the first quarter of 2019 increased
significantly as compared to the fourth quarter of 2018. The
increase in the effective tax rate was primarily due to a $2.6
million tax benefit recorded in the fourth quarter of 2018 for
certain discrete items included on our 2017 tax return which was
filed during the fourth quarter of 2018. The effective tax rate for
the year ended December 31, 2018, excluding discrete income tax
benefits, was 21.7%.
Results of Operations – First Quarter
2019 Compared to First Quarter 2018
- Net income for the three months ended March 31, 2019 was $10.7
million, or $0.53 diluted earnings per share, as compared to net
income of $15.3 million, or diluted earnings per share of $0.75 for
the same period in 2018. Contributing to the net income decrease
were increases of $3.7 million and $2.7 million in noninterest
expense and the Provision, respectively.On a non-GAAP basis, core
net income, which excludes one-time costs associated with the
Incentive Program, income tax charges incurred in connection with
Tax Reform, due diligence and merger-related expenses and other
non-core income and expense items, as detailed in the appendix to
this earnings release, was $14.2 million, or $0.70 per diluted
share, for the three months ended March 31, 2019 as compared to
$19.3 million, or $0.94 per diluted share, for the same period in
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 March 31, 2019
was $37.6 million, an increase of $208 thousand as compared to the
same period in 2018. Tax-equivalent net interest income for the
three months ended March 31, 2019 was $37.8 million, an increase of
$256 thousand as compared to the same period in 2018.
Tax-equivalent net interest income for the first quarter of 2019
was impacted by the accretion of purchase accounting fair value
marks of $2.1 million as compared to $3.0 million for the same
period in 2018. Excluding the effects of these purchase accounting
fair value marks, the adjusted tax-equivalent net interest income
for the three months ended March 31, 2019 was $35.6 million, an
increase of $1.1 million as compared to the same period in 2018. A
reconciliation of this and other non-GAAP to GAAP performance
measures is included in the appendix to this earnings release.
Items contributing to the increase adjusted for purchase accounting
included increases of $4.8 million and $812 thousand in
tax-equivalent interest and fees earned on loans and leases and
interest earned on available for sale investment securities,
respectively, partially offset by an increase of $4.5 million in
interest paid on deposits for the three months ended March 31, 2019
as compared to the same period in 2018.Tax-equivalent interest and
fees on loans and leases increased $4.1 million for the three
months ended March 31, 2019 as compared to the same period in 2018.
Average loans and leases for the first quarter of 2019 increased
$186.5 million from the same period in 2018 and experienced a 21
basis point increase in tax-equivalent yield.Average available for
sale investment securities increased by $34.3 million for the three
months ended March 31, 2019 as compared to the same period in 2018
and experienced a 46 basis point tax-equivalent yield increase. The
increase in average balances and yield on available for sale
investment securities resulted in an $812 thousand increase in
tax-equivalent interest income on available for sale investment
securities for the first quarter of 2019 as compared to the same
period in 2018.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 $4.6 million
increase in interest expense on deposits for the three months ended
March 31, 2019 as compared to the same period in 2018. Average
interest-bearing deposits increased by $238.7 million, coupled with
a 65 basis point increase in rate paid for the first quarter of
2019 as compared to the same period in 2018.
- The tax-equivalent net interest margin was 3.75% for the three
months ended March 31, 2019 as compared to 3.94% for the same
period in 2018. Adjusting for the impact of the accretion of
purchase accounting fair value marks, the adjusted tax-equivalent
net interest margin was 3.54% and 3.62% for three months ended
March 31, 2019 and 2018, respectively. A reconciliation of this and
other non-GAAP to GAAP performance measures is included in the
appendix to this earnings release.
- Noninterest income of $19.3 million for the three months ended
March 31, 2019 decreased by $283 thousand as compared to the same
period in 2018. Contributing to this decrease were decreases of
$1.5 million, $200 thousand, and $199 thousand in other operating
income, net gain on sale of other real estate owned, and net gain
on sale of loans, respectively. The decrease in other operating
income was primarily due to a $2.2 million decrease in recoveries
of purchase accounting fair value marks resulting from pay-offs of
previously acquired credit-impaired loans for the three months
ended March 31, 2019 as compared to the same period in 2018.
Partially offsetting the decrease in noninterest income was an
increase of $1.6 million in capital markets revenue which was
primarily due to increased volume of capital market
transactions.
- Noninterest expense of $39.7 million for the three months ended
March 31, 2019 increased $3.7 million as compared to the same
period in 2018. Contributing to the $3.7 million increase were
increases of $4.9 million, $1.2 million, $572 thousand, $491
thousand, and $458 thousand in salaries and wages, other operating
expenses, professional fees, furniture, fixtures and equipment
expenses, and employee benefits, respectively. The increases in
salaries and wages and employee benefits was largely driven by the
expenses incurred in connection with the Incentive Program.
Partially offsetting these increases in noninterest expense was a
decrease of $4.3 million in due diligence, merger-related and
merger integration expenses for the three months ended March 31,
2019 as compared to the same period in 2018.
- The Provision increased $2.7 million for the three months ended
March 31, 2019 to $3.7 million, as compared to $1.0 million for the
same period in 2018. In addition, net loan and lease charge-offs
increased by $1.7 million for the first quarter of 2019, as
compared to the same period in 2018. This 6.6% increase in loan and
lease volume and 185.1% increase in net charge-offs were the
primary drivers for the increase in the Provision on a
year-over-year basis. Nonperforming loans and leases as of March
31, 2019 totaled $19.3 million, an increase of $11.8 million from
March 31, 2018. The increase in nonperforming loans was comprised
primarily of real estate collateralized loans for which management
performs impairment analyses. All nonperforming loans are carried
at their net realizable value.
- The effective tax rate for the first quarter of 2019 decreased
to 20.57% as compared to 23.25% for the first quarter of 2018. The
decrease was primarily due to $590 thousand of discrete tax charges
included in tax expense in the first quarter of 2018 related to the
re-measurement of net deferred tax assets as a result of Tax
Reform, related to revised fair value adjustments associated with
the merger with Royal Bancshares of Pennsylvania, Inc. in December
2017.
Financial Condition – March 31, 2019 Compared to
December 31, 2018
- Total assets as of March 31, 2019 were $4.63 billion, a
decrease of $20.5 million from December 31, 2018. The decrease
was primarily due to the decrease in available for sale investment
securities discussed in the bullet point below, partially offset by
the increase in portfolio loans and leases discussed in the bullet
point below, as well as $44.0 million of operating lease
right-of-use assets as of March 31, 2019 included on the balance
sheet as a result of a recently adopted accounting
pronouncement.
- Available for sale investment securities as of March 31, 2019
totaled $560.0 million, a decrease of $177.5 million from December
31, 2018. The decrease was primarily related to the maturing, in
January 2019, of $200.0 million short-term U.S. Treasury
securities, partially offset by a $33.0 million increase in
mortgage-backed securities.
- Total portfolio loans and leases of $3.52 billion as of March
31, 2019 increased by $96.4 million from December 31, 2018, an
increase of 2.8%. Increases of $89.3 million, $11.8 million, $10.1
million and $8.0 million in commercial mortgages, leases,
commercial and industrial loans and residential mortgages,
respectively, were offset by decreases of $21.3 million and $2.6
million in construction loans and home equity loans and lines,
respectively.
- The Allowance as of March 31, 2019 was $20.6 million, or 0.59%
of portfolio loans and leases, as compared to $19.4 million, or
0.57% of portfolio loans and leases as of December 31, 2018.
In addition to the ratio of Allowance to portfolio loans and
leases, management also calculates two non-GAAP measures: the
Allowance for originated loans and leases as a percentage of
originated loans and leases, which was 0.68% as of March 31, 2019,
as compared to 0.67% as of December 31, 2018, and the Allowance
plus the remaining loan mark as a percentage of gross loans, which
was 1.03% as of March 31, 2019, as compared to 1.08% as of December
31, 2017. A reconciliation of these and other non-GAAP to GAAP
performance measures is included in the appendix to this earnings
release.
- Deposits of $3.64 billion as of March 31, 2019 increased $38.5
million from December 31, 2018. Increases of $98.7 million and
$18.5 million in money market and savings accounts, respectively,
were partially offset by decreases of $40.9 million, $19.3 million,
$11.2 million, and $7.3 million in wholesale deposits,
noninterest-bearing demand accounts, retail time deposits and
wholesale non-maturity deposits, respectively.
- Borrowings of $299.8 million as of March 31, 2019, which
include short-term borrowings, long-term FHLB advances,
subordinated notes and junior subordinated debentures, decreased
$128.0 million from December 31, 2018, primarily due to decreases
in short-term borrowings.
- Wealth assets under management, administration, supervision and
brokerage totaled $14.74 billion as of March 31, 2019, an increase
of $1.31 billion from December 31, 2018.
- The capital ratios for the Bank and the Corporation, as of
March 31, 2019, as shown in the attached tables, indicate levels
above the regulatory minimum to be considered “well
capitalized.”
FORWARD LOOKING STATEMENTS AND SAFE HARBORThis
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.
FOR MORE INFORMATION CONTACT:
Frank Leto, President, CEO610-581-4730Mike Harrington,
CFO610-526-2466
Bryn Mawr Bank CorporationSummary
Financial Information (unaudited)(dollars in thousands,
except per share data)
|
As of or For the Three Months
Ended |
|
March 31, 2019 |
|
December 31, 2018 |
|
September 30, 2018 |
|
June 30, 2018 |
|
March 31, 2018 |
Consolidated
Balance Sheet (selected items) |
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits with banks |
$ |
29,449 |
|
|
$ |
34,357 |
|
|
$ |
35,233 |
|
|
$ |
39,924 |
|
|
$ |
24,589 |
|
Investment
securities |
578,629 |
|
|
753,628 |
|
|
545,320 |
|
|
547,088 |
|
|
550,199 |
|
Loans held for
sale |
2,884 |
|
|
1,749 |
|
|
4,111 |
|
|
4,204 |
|
|
5,522 |
|
Portfolio loans and
leases |
3,523,514 |
|
|
3,427,154 |
|
|
3,381,475 |
|
|
3,389,501 |
|
|
3,305,795 |
|
Allowance for loan and
lease losses ("ALLL") |
(20,616 |
) |
|
(19,426 |
) |
|
(18,684 |
) |
|
(19,398 |
) |
|
(17,662 |
) |
Goodwill and other
intangible assets |
206,006 |
|
|
207,467 |
|
|
208,165 |
|
|
208,139 |
|
|
207,287 |
|
Total assets |
4,631,993 |
|
|
4,652,485 |
|
|
4,388,442 |
|
|
4,394,203 |
|
|
4,300,376 |
|
Deposits -
interest-bearing |
2,755,307 |
|
|
2,697,468 |
|
|
2,522,863 |
|
|
2,466,529 |
|
|
2,452,421 |
|
Deposits -
non-interest-bearing |
882,310 |
|
|
901,619 |
|
|
834,363 |
|
|
892,386 |
|
|
863,118 |
|
Short-term
borrowings |
124,214 |
|
|
252,367 |
|
|
226,498 |
|
|
227,059 |
|
|
173,704 |
|
Long-term FHLB
advances |
55,407 |
|
|
55,374 |
|
|
72,841 |
|
|
87,808 |
|
|
107,784 |
|
Subordinated notes |
98,571 |
|
|
98,526 |
|
|
98,482 |
|
|
98,491 |
|
|
98,448 |
|
Jr. subordinated
debentures |
21,622 |
|
|
21,580 |
|
|
21,538 |
|
|
21,497 |
|
|
21,456 |
|
Total liabilities |
4,056,886 |
|
|
4,087,781 |
|
|
3,837,017 |
|
|
3,851,700 |
|
|
3,767,315 |
|
Total shareholders'
equity |
575,107 |
|
|
564,704 |
|
|
551,425 |
|
|
542,503 |
|
|
533,061 |
|
Average Balance
Sheet (selected items) |
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits with banks |
32,742 |
|
|
38,957 |
|
|
37,467 |
|
|
37,215 |
|
|
38,044 |
|
Investment
securities |
569,915 |
|
|
554,265 |
|
|
546,998 |
|
|
549,249 |
|
|
535,471 |
|
Loans held for
sale |
1,214 |
|
|
2,005 |
|
|
4,932 |
|
|
4,413 |
|
|
2,848 |
|
Portfolio loans and
leases |
3,476,525 |
|
|
3,397,479 |
|
|
3,374,767 |
|
|
3,348,926 |
|
|
3,288,364 |
|
Total interest-earning
assets |
4,080,396 |
|
|
3,992,706 |
|
|
3,964,164 |
|
|
3,939,803 |
|
|
3,864,727 |
|
Goodwill and intangible
assets |
206,716 |
|
|
207,893 |
|
|
207,880 |
|
|
208,039 |
|
|
205,529 |
|
Total assets |
4,545,129 |
|
|
4,413,000 |
|
|
4,376,148 |
|
|
4,344,541 |
|
|
4,246,180 |
|
Deposits -
interest-bearing |
2,674,194 |
|
|
2,602,412 |
|
|
2,493,213 |
|
|
2,489,296 |
|
|
2,435,491 |
|
Short-term
borrowings |
157,652 |
|
|
128,429 |
|
|
208,201 |
|
|
205,323 |
|
|
172,534 |
|
Long-term FHLB
advances |
55,385 |
|
|
67,363 |
|
|
81,460 |
|
|
102,023 |
|
|
123,920 |
|
Subordinated notes |
98,542 |
|
|
98,497 |
|
|
98,457 |
|
|
98,463 |
|
|
98,430 |
|
Jr. subordinated
debentures |
21,595 |
|
|
21,553 |
|
|
21,511 |
|
|
21,470 |
|
|
21,430 |
|
Total interest-bearing
liabilities |
3,007,368 |
|
|
2,918,254 |
|
|
2,902,842 |
|
|
2,916,575 |
|
|
2,851,805 |
|
Total liabilities |
3,973,043 |
|
|
3,856,694 |
|
|
3,828,241 |
|
|
3,810,640 |
|
|
3,719,746 |
|
Total shareholders'
equity |
572,086 |
|
|
556,306 |
|
|
547,907 |
|
|
533,901 |
|
|
526,434 |
|
|
As of or For the Three Months
Ended |
|
March 31, 2019 |
|
December 31, 2018 |
|
September 30, 2018 |
|
June 30, 2018 |
|
March 31, 2018 |
Income
Statement |
|
|
|
|
|
|
|
|
|
Net interest income |
$ |
37,647 |
|
|
$ |
37,987 |
|
|
$ |
36,729 |
|
|
$ |
37,316 |
|
|
$ |
37,439 |
|
Provision for loan and
lease losses |
3,736 |
|
|
2,362 |
|
|
664 |
|
|
3,137 |
|
|
1,030 |
|
Noninterest income |
19,253 |
|
|
18,097 |
|
|
18,274 |
|
|
20,075 |
|
|
19,536 |
|
Noninterest
expense |
39,724 |
|
|
34,845 |
|
|
33,592 |
|
|
35,836 |
|
|
36,030 |
|
Income tax expense |
2,764 |
|
|
1,746 |
|
|
4,066 |
|
|
3,723 |
|
|
4,630 |
|
Net income |
10,676 |
|
|
17,131 |
|
|
16,681 |
|
|
14,695 |
|
|
15,285 |
|
Net (loss) income
attributable to noncontrolling interest |
(1 |
) |
|
(5 |
) |
|
(1 |
) |
|
7 |
|
|
(1 |
) |
Net income attributable
to Bryn Mawr Bank Corporation |
10,677 |
|
|
17,136 |
|
|
16,682 |
|
|
14,688 |
|
|
15,286 |
|
Basic earnings per
share |
0.53 |
|
|
0.85 |
|
|
0.82 |
|
|
0.73 |
|
|
0.76 |
|
Diluted earnings per
share |
0.53 |
|
|
0.84 |
|
|
0.82 |
|
|
0.72 |
|
|
0.75 |
|
Net income (core)
(1) |
14,230 |
|
|
17,167 |
|
|
17,140 |
|
|
17,031 |
|
|
19,282 |
|
Basic earnings per
share (core) (1) |
0.71 |
|
|
0.85 |
|
|
0.85 |
|
|
0.84 |
|
|
0.95 |
|
Diluted earnings per
share (core) (1) |
0.70 |
|
|
0.84 |
|
|
0.84 |
|
|
0.83 |
|
|
0.94 |
|
Dividends paid or
accrued per share |
0.25 |
|
|
0.25 |
|
|
0.25 |
|
|
0.22 |
|
|
0.22 |
|
Profitability
Indicators |
|
|
|
|
|
|
|
|
|
Return on average
assets |
0.95 |
% |
|
1.54 |
% |
|
1.51 |
% |
|
1.36 |
% |
|
1.46 |
% |
Return on average
equity |
7.57 |
% |
|
12.22 |
% |
|
12.08 |
% |
|
11.03 |
% |
|
11.78 |
% |
Return on tangible
equity(1) |
12.65 |
% |
|
20.37 |
% |
|
20.25 |
% |
|
18.90 |
% |
|
20.15 |
% |
Return on tangible
equity (core)(1) |
16.59 |
% |
|
20.40 |
% |
|
20.78 |
% |
|
21.78 |
% |
|
25.19 |
% |
Return on average
assets (core)(1) |
1.27 |
% |
|
1.54 |
% |
|
1.55 |
% |
|
1.57 |
% |
|
1.84 |
% |
Return on average
equity (core)(1) |
10.09 |
% |
|
12.24 |
% |
|
12.41 |
% |
|
12.79 |
% |
|
14.85 |
% |
Tax-equivalent net
interest margin |
3.75 |
% |
|
3.79 |
% |
|
3.69 |
% |
|
3.81 |
% |
|
3.94 |
% |
Efficiency
ratio(1) |
60.26 |
% |
|
60.35 |
% |
|
58.75 |
% |
|
55.57 |
% |
|
54.12 |
% |
Share
Data |
|
|
|
|
|
|
|
|
|
Closing share
price |
$ |
36.13 |
|
|
$ |
34.40 |
|
|
$ |
46.90 |
|
|
$ |
46.30 |
|
|
$ |
43.95 |
|
Book value per common
share |
$ |
28.52 |
|
|
$ |
28.01 |
|
|
$ |
27.18 |
|
|
$ |
26.80 |
|
|
$ |
26.35 |
|
Tangible book value per
common share |
$ |
18.34 |
|
|
$ |
17.75 |
|
|
$ |
16.95 |
|
|
$ |
16.55 |
|
|
$ |
16.14 |
|
Price / book value |
126.68 |
% |
|
122.81 |
% |
|
172.55 |
% |
|
172.76 |
% |
|
166.79 |
% |
Price / tangible book
value |
197.00 |
% |
|
193.80 |
% |
|
276.70 |
% |
|
279.74 |
% |
|
272.35 |
% |
Weighted average
diluted shares outstanding |
20,271,661 |
|
|
20,321,283 |
|
|
20,438,376 |
|
|
20,413,578 |
|
|
20,450,494 |
|
Shares outstanding, end
of period |
20,167,729 |
|
|
20,163,816 |
|
|
20,291,416 |
|
|
20,242,893 |
|
|
20,229,896 |
|
Wealth
Management Information: |
|
|
|
|
|
|
|
|
|
Wealth assets under
mgmt, administration, supervision and brokerage (2) |
$ |
14,736,512 |
|
|
$ |
13,429,544 |
|
|
$ |
13,913,265 |
|
|
$ |
13,404,723 |
|
|
$ |
13,146,926 |
|
Fees for wealth
management services |
$ |
10,392 |
|
|
$ |
11,017 |
|
|
$ |
10,343 |
|
|
$ |
10,658 |
|
|
$ |
10,308 |
|
|
As of or For the Three Months
Ended |
|
March 31, 2019 |
|
December 31, 2018 |
|
September 30, 2018 |
|
June 30, 2018 |
|
March 31, 2018 |
Capital
Ratios(3) |
|
|
|
|
|
|
|
|
|
Bryn Mawr Trust Company
("BMTC") |
|
|
|
|
|
|
|
|
|
Tier I capital to risk
weighted assets ("RWA") |
11.30 |
% |
|
11.42 |
% |
|
11.55 |
% |
|
11.34 |
% |
|
11.29 |
% |
Total capital to
RWA |
11.87 |
% |
|
11.99 |
% |
|
12.10 |
% |
|
11.91 |
% |
|
11.82 |
% |
Tier I leverage
ratio |
9.48 |
% |
|
9.48 |
% |
|
9.47 |
% |
|
9.49 |
% |
|
9.39 |
% |
Tangible equity ratio
(1) |
9.34 |
% |
|
8.95 |
% |
|
9.29 |
% |
|
9.27 |
% |
|
9.19 |
% |
Common equity Tier I
capital to RWA |
11.30 |
% |
|
11.42 |
% |
|
11.55 |
% |
|
11.34 |
% |
|
11.29 |
% |
|
|
|
|
|
|
|
|
|
|
Bryn Mawr Bank
Corporation ("BMBC") |
|
|
|
|
|
|
|
|
|
Tier I capital to
RWA |
10.72 |
% |
|
10.92 |
% |
|
10.90 |
% |
|
10.46 |
% |
|
10.46 |
% |
Total capital to
RWA |
14.00 |
% |
|
14.30 |
% |
|
14.33 |
% |
|
13.87 |
% |
|
13.93 |
% |
Tier I leverage
ratio |
8.99 |
% |
|
9.06 |
% |
|
8.94 |
% |
|
8.75 |
% |
|
8.71 |
% |
Tangible equity ratio
(1) |
8.35 |
% |
|
8.05 |
% |
|
8.23 |
% |
|
8.00 |
% |
|
7.98 |
% |
Common equity Tier I
capital to RWA |
10.14 |
% |
|
10.32 |
% |
|
10.29 |
% |
|
9.86 |
% |
|
9.85 |
% |
|
|
|
|
|
|
|
|
|
|
Asset Quality
Indicators |
|
|
|
|
|
|
|
|
|
Net loan and lease
charge-offs ("NCO"s) |
$ |
2,546 |
|
|
$ |
1,620 |
|
|
$ |
1,378 |
|
|
$ |
1,401 |
|
|
$ |
893 |
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans and
leases ("NPL"s) |
$ |
19,283 |
|
|
$ |
12,820 |
|
|
$ |
8,990 |
|
|
$ |
9,448 |
|
|
$ |
7,533 |
|
Other real estate owned
("OREO") |
84 |
|
|
417 |
|
|
529 |
|
|
531 |
|
|
300 |
|
Total
nonperforming assets ("NPA"s) |
$ |
19,367 |
|
|
$ |
13,237 |
|
|
$ |
9,519 |
|
|
$ |
9,979 |
|
|
$ |
7,833 |
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans and
leases 30 or more days past due |
$ |
8,489 |
|
|
$ |
7,765 |
|
|
$ |
4,906 |
|
|
$ |
6,749 |
|
|
$ |
5,775 |
|
Performing loans and
leases 30 to 89 days past due |
6,432 |
|
|
5,464 |
|
|
9,145 |
|
|
10,378 |
|
|
6,547 |
|
Performing loans and
leases 90 or more days past due |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Total
delinquent loans and leases |
$ |
14,921 |
|
|
$ |
13,229 |
|
|
$ |
14,051 |
|
|
$ |
17,127 |
|
|
$ |
12,322 |
|
|
|
|
|
|
|
|
|
|
|
Delinquent loans and
leases to total loans and leases |
0.42 |
% |
|
0.39 |
% |
|
0.42 |
% |
|
0.50 |
% |
|
0.37 |
% |
Delinquent performing
loans and leases to total loans and leases |
0.18 |
% |
|
0.16 |
% |
|
0.27 |
% |
|
0.31 |
% |
|
0.20 |
% |
NCOs / average loans
and leases (annualized) |
0.30 |
% |
|
0.19 |
% |
|
0.16 |
% |
|
0.17 |
% |
|
0.11 |
% |
NPLs / total portfolio
loans and leases |
0.55 |
% |
|
0.37 |
% |
|
0.27 |
% |
|
0.28 |
% |
|
0.23 |
% |
NPAs / total loans and
leases and OREO |
0.55 |
% |
|
0.39 |
% |
|
0.28 |
% |
|
0.29 |
% |
|
0.24 |
% |
NPAs / total
assets |
0.42 |
% |
|
0.28 |
% |
|
0.22 |
% |
|
0.23 |
% |
|
0.18 |
% |
ALLL / NPLs |
106.91 |
% |
|
151.53 |
% |
|
207.83 |
% |
|
205.31 |
% |
|
234.46 |
% |
ALLL / portfolio
loans |
0.59 |
% |
|
0.57 |
% |
|
0.55 |
% |
|
0.57 |
% |
|
0.53 |
% |
ALLL for originated
loans and leases / Originated loans and leases (1) |
0.68 |
% |
|
0.67 |
% |
|
0.68 |
% |
|
0.71 |
% |
|
0.69 |
% |
(Total ALLL + Loan
mark) / Total Gross portfolio loans and leases (1) |
1.03 |
% |
|
1.08 |
% |
|
1.28 |
% |
|
1.35 |
% |
|
1.50 |
% |
|
|
|
|
|
|
|
|
|
|
Troubled debt
restructurings ("TDR"s) included in NPLs |
$ |
4,057 |
|
|
$ |
1,217 |
|
|
$ |
1,208 |
|
|
$ |
1,044 |
|
|
$ |
1,125 |
|
TDRs in compliance with
modified terms |
5,149 |
|
|
9,745 |
|
|
4,316 |
|
|
4,117 |
|
|
5,235 |
|
Total
TDRs |
$ |
9,206 |
|
|
$ |
10,962 |
|
|
$ |
5,524 |
|
|
$ |
5,161 |
|
|
$ |
6,360 |
|
- Non-GAAP measure - see Appendix for Non-GAAP to GAAP
reconciliation.
- Brokerage assets represent assets held at a registered broker
dealer under a clearing agreement.
- Capital Ratios for the current quarter are to be considered
preliminary until the Call Reports are filed.
Bryn Mawr Bank CorporationDetailed
Balance Sheets (unaudited)(dollars in thousands)
|
March 31, 2019 |
|
December 31, 2018 |
|
September 30, 2018 |
|
June 30, 2018 |
|
March 31, 2018 |
Assets |
|
|
|
|
|
|
|
|
|
Cash and due from
banks |
$ |
13,656 |
|
|
$ |
14,099 |
|
|
$ |
10,121 |
|
|
$ |
7,318 |
|
|
$ |
7,804 |
|
Interest-bearing
deposits with banks |
29,449 |
|
|
34,357 |
|
|
35,233 |
|
|
39,924 |
|
|
24,589 |
|
Cash and cash equivalents |
43,105 |
|
|
48,456 |
|
|
45,354 |
|
|
47,242 |
|
|
32,393 |
|
Investment securities,
available for sale |
559,983 |
|
|
737,442 |
|
|
528,064 |
|
|
531,075 |
|
|
534,103 |
|
Investment securities,
held to maturity |
10,457 |
|
|
8,684 |
|
|
8,916 |
|
|
7,838 |
|
|
7,885 |
|
Investment securities,
trading |
8,189 |
|
|
7,502 |
|
|
8,340 |
|
|
8,175 |
|
|
8,211 |
|
Loans held for
sale |
2,884 |
|
|
1,749 |
|
|
4,111 |
|
|
4,204 |
|
|
5,522 |
|
Portfolio loans and
leases, originated |
3,032,270 |
|
|
2,885,251 |
|
|
2,752,160 |
|
|
2,700,815 |
|
|
2,564,827 |
|
Portfolio loans and
leases, acquired |
491,244 |
|
|
541,903 |
|
|
629,315 |
|
|
688,686 |
|
|
740,968 |
|
Total portfolio loans and leases |
3,523,514 |
|
|
3,427,154 |
|
|
3,381,475 |
|
|
3,389,501 |
|
|
3,305,795 |
|
Less: Allowance for
losses on originated loan and leases |
(20,519 |
) |
|
(19,329 |
) |
|
(18,612 |
) |
|
(19,181 |
) |
|
(17,570 |
) |
Less: Allowance for
losses on acquired loan and leases |
(97 |
) |
|
(97 |
) |
|
(72 |
) |
|
(217 |
) |
|
(92 |
) |
Total allowance for loan and lease losses |
(20,616 |
) |
|
(19,426 |
) |
|
(18,684 |
) |
|
(19,398 |
) |
|
(17,662 |
) |
Net portfolio loans and leases |
3,502,898 |
|
|
3,407,728 |
|
|
3,362,791 |
|
|
3,370,103 |
|
|
3,288,133 |
|
Premises and
equipment |
67,279 |
|
|
65,648 |
|
|
63,281 |
|
|
54,185 |
|
|
54,986 |
|
Operating lease
right-of-use assets |
43,985 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Accrued interest
receivable |
13,123 |
|
|
12,585 |
|
|
13,232 |
|
|
13,115 |
|
|
12,521 |
|
Mortgage servicing
rights |
4,910 |
|
|
5,047 |
|
|
5,328 |
|
|
5,511 |
|
|
5,706 |
|
Bank owned life
insurance |
58,138 |
|
|
57,844 |
|
|
57,543 |
|
|
57,243 |
|
|
56,946 |
|
Federal Home Loan Bank
("FHLB") stock |
10,526 |
|
|
14,530 |
|
|
14,678 |
|
|
16,678 |
|
|
15,499 |
|
Goodwill |
184,012 |
|
|
184,012 |
|
|
183,864 |
|
|
183,162 |
|
|
182,200 |
|
Intangible assets |
21,994 |
|
|
23,455 |
|
|
24,301 |
|
|
24,977 |
|
|
25,087 |
|
Other investments |
16,526 |
|
|
16,526 |
|
|
16,529 |
|
|
16,774 |
|
|
11,720 |
|
Other assets |
83,984 |
|
|
61,277 |
|
|
52,110 |
|
|
53,921 |
|
|
59,464 |
|
Total assets |
$ |
4,631,993 |
|
|
$ |
4,652,485 |
|
|
$ |
4,388,442 |
|
|
$ |
4,394,203 |
|
|
$ |
4,300,376 |
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
|
|
|
Noninterest-bearing |
$ |
882,310 |
|
|
$ |
901,619 |
|
|
$ |
834,363 |
|
|
$ |
892,386 |
|
|
$ |
863,118 |
|
Interest-bearing |
2,755,307 |
|
|
2,697,468 |
|
|
2,522,863 |
|
|
2,466,529 |
|
|
2,452,421 |
|
Total deposits |
3,637,617 |
|
|
3,599,087 |
|
|
3,357,226 |
|
|
3,358,915 |
|
|
3,315,539 |
|
Short-term
borrowings |
124,214 |
|
|
252,367 |
|
|
226,498 |
|
|
227,059 |
|
|
173,704 |
|
Long-term FHLB
advances |
55,407 |
|
|
55,374 |
|
|
72,841 |
|
|
87,808 |
|
|
107,784 |
|
Subordinated notes |
98,571 |
|
|
98,526 |
|
|
98,482 |
|
|
98,491 |
|
|
98,448 |
|
Jr. subordinated
debentures |
21,622 |
|
|
21,580 |
|
|
21,538 |
|
|
21,497 |
|
|
21,456 |
|
Operating lease
liabilities |
48,224 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Accrued interest
payable |
8,674 |
|
|
6,652 |
|
|
7,193 |
|
|
5,230 |
|
|
4,814 |
|
Other liabilities |
62,557 |
|
|
54,195 |
|
|
53,239 |
|
|
52,700 |
|
|
45,570 |
|
Total liabilities |
4,056,886 |
|
|
4,087,781 |
|
|
3,837,017 |
|
|
3,851,700 |
|
|
3,767,315 |
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity |
|
|
|
|
|
|
|
|
|
Common stock |
24,577 |
|
|
24,545 |
|
|
24,533 |
|
|
24,453 |
|
|
24,439 |
|
Paid-in capital in
excess of par value |
375,655 |
|
|
374,010 |
|
|
373,205 |
|
|
372,227 |
|
|
371,319 |
|
Less: common stock held
in treasury, at cost |
(76,974 |
) |
|
(75,883 |
) |
|
(70,437 |
) |
|
(68,943 |
) |
|
(68,787 |
) |
Accumulated other
comprehensive (loss) income, net of tax |
(3,278 |
) |
|
(7,513 |
) |
|
(13,402 |
) |
|
(11,191 |
) |
|
(9,664 |
) |
Retained earnings |
255,813 |
|
|
250,230 |
|
|
238,204 |
|
|
226,634 |
|
|
216,438 |
|
Total Bryn Mawr Bank Corporation shareholders'
equity |
575,793 |
|
|
565,389 |
|
|
552,103 |
|
|
543,180 |
|
|
533,745 |
|
Noncontrolling
interest |
(686 |
) |
|
(685 |
) |
|
(678 |
) |
|
(677 |
) |
|
(684 |
) |
Total shareholders' equity |
575,107 |
|
|
564,704 |
|
|
551,425 |
|
|
542,503 |
|
|
533,061 |
|
Total liabilities and shareholders' equity |
$ |
4,631,993 |
|
|
$ |
4,652,485 |
|
|
$ |
4,388,442 |
|
|
$ |
4,394,203 |
|
|
$ |
4,300,376 |
|
Bryn Mawr Bank CorporationSupplemental
Balance Sheet Information (unaudited)(dollars in
thousands)
|
Portfolio Loans and Leases as of |
|
March 31, 2019 |
|
December 31, 2018 |
|
September 30, 2018 |
|
June 30, 2018 |
|
March 31, 2018 |
Commercial
mortgages |
$ |
1,746,695 |
|
|
$ |
1,657,436 |
|
|
$ |
1,618,493 |
|
|
$ |
1,613,721 |
|
|
$ |
1,541,457 |
|
Home equity loans and
lines |
204,791 |
|
|
207,351 |
|
|
207,806 |
|
|
206,429 |
|
|
211,469 |
|
Residential
mortgages |
502,379 |
|
|
494,355 |
|
|
467,402 |
|
|
449,060 |
|
|
453,655 |
|
Construction |
159,761 |
|
|
181,078 |
|
|
178,493 |
|
|
190,874 |
|
|
202,168 |
|
Total real estate loans |
2,613,626 |
|
|
2,540,220 |
|
|
2,472,194 |
|
|
2,460,084 |
|
|
2,408,749 |
|
Commercial &
Industrial |
705,701 |
|
|
695,584 |
|
|
722,999 |
|
|
745,306 |
|
|
727,231 |
|
Consumer |
47,821 |
|
|
46,814 |
|
|
47,809 |
|
|
51,462 |
|
|
48,423 |
|
Leases |
156,366 |
|
|
144,536 |
|
|
138,473 |
|
|
132,649 |
|
|
121,392 |
|
Total non-real estate loans and leases |
909,888 |
|
|
886,934 |
|
|
909,281 |
|
|
929,417 |
|
|
897,046 |
|
Total portfolio loans and leases |
$ |
3,523,514 |
|
|
$ |
3,427,154 |
|
|
$ |
3,381,475 |
|
|
$ |
3,389,501 |
|
|
$ |
3,305,795 |
|
|
Nonperforming Loans and Leases as
of |
|
March 31, 2019 |
|
December 31, 2018 |
|
September 30, 2018 |
|
June 30, 2018 |
|
March 31, 2018 |
Commercial
mortgages |
$ |
5,558 |
|
|
$ |
2,568 |
|
|
$ |
735 |
|
|
$ |
1,011 |
|
|
$ |
138 |
|
Home equity loans and
lines |
6,904 |
|
|
3,616 |
|
|
1,933 |
|
|
2,323 |
|
|
1,949 |
|
Residential
mortgages |
2,863 |
|
|
3,452 |
|
|
2,770 |
|
|
2,647 |
|
|
2,603 |
|
Construction |
— |
|
|
— |
|
|
291 |
|
|
— |
|
|
— |
|
Total nonperforming real estate loans |
15,325 |
|
|
9,636 |
|
|
5,729 |
|
|
5,980 |
|
|
4,690 |
|
Commercial &
Industrial |
2,965 |
|
|
2,101 |
|
|
1,782 |
|
|
1,585 |
|
|
2,499 |
|
Consumer |
80 |
|
|
108 |
|
|
117 |
|
|
— |
|
|
— |
|
Leases |
913 |
|
|
975 |
|
|
1,362 |
|
|
1,882 |
|
|
344 |
|
Total nonperforming non-real estate loans and leases |
3,958 |
|
|
3,184 |
|
|
3,261 |
|
|
3,468 |
|
|
2,843 |
|
Total nonperforming portfolio loans and leases |
$ |
19,283 |
|
|
$ |
12,820 |
|
|
$ |
8,990 |
|
|
$ |
9,448 |
|
|
$ |
7,533 |
|
|
Net Loan and Lease Charge-Offs (Recoveries)
for the Three Months Ended |
|
March 31, 2019 |
|
December 31, 2018 |
|
September 30, 2018 |
|
June 30, 2018 |
|
March 31, 2018 |
Commercial mortgage |
$ |
1,373 |
|
|
$ |
249 |
|
|
$ |
56 |
|
|
$ |
13 |
|
|
$ |
(3 |
) |
Home equity loans and
lines |
46 |
|
|
107 |
|
|
— |
|
|
199 |
|
|
25 |
|
Residential |
329 |
|
|
304 |
|
|
(12 |
) |
|
(1 |
) |
|
— |
|
Construction |
(1 |
) |
|
— |
|
|
— |
|
|
(1 |
) |
|
(1 |
) |
Total net charge-offs of real estate loans |
1,747 |
|
|
660 |
|
|
44 |
|
|
210 |
|
|
21 |
|
Commercial &
Industrial |
391 |
|
|
298 |
|
|
304 |
|
|
467 |
|
|
283 |
|
Consumer |
94 |
|
|
147 |
|
|
71 |
|
|
41 |
|
|
48 |
|
Leases |
314 |
|
|
515 |
|
|
959 |
|
|
683 |
|
|
541 |
|
Total net charge-offs of non-real estate loans and leases |
799 |
|
|
960 |
|
|
1,334 |
|
|
1,191 |
|
|
872 |
|
Total net charge-offs |
$ |
2,546 |
|
|
$ |
1,620 |
|
|
$ |
1,378 |
|
|
$ |
1,401 |
|
|
$ |
893 |
|
|
Investment Securities Available for Sale, at
Fair Value |
|
March 31, 2019 |
|
December 31, 2018 |
|
September 30, 2018 |
|
June 30, 2018 |
|
March 31, 2018 |
U.S. Treasury
securities |
$ |
100 |
|
|
$ |
200,013 |
|
|
$ |
100 |
|
|
$ |
100 |
|
|
$ |
100 |
|
Obligations of the U.S.
Government and agencies |
186,746 |
|
|
195,855 |
|
|
190,453 |
|
|
183,256 |
|
|
175,107 |
|
State & political
subdivisions - tax-free |
8,468 |
|
|
11,162 |
|
|
15,629 |
|
|
17,254 |
|
|
19,746 |
|
State & political
subdivisions - taxable |
170 |
|
|
170 |
|
|
170 |
|
|
171 |
|
|
171 |
|
Mortgage-backed
securities |
322,913 |
|
|
289,890 |
|
|
284,421 |
|
|
292,563 |
|
|
303,902 |
|
Collateralized mortgage
obligations |
40,486 |
|
|
39,252 |
|
|
36,193 |
|
|
36,634 |
|
|
33,980 |
|
Other debt
securities |
1,100 |
|
|
1,100 |
|
|
1,098 |
|
|
1,097 |
|
|
1,097 |
|
Total investment securities available for sale, at fair value |
$ |
559,983 |
|
|
$ |
737,442 |
|
|
$ |
528,064 |
|
|
$ |
531,075 |
|
|
$ |
534,103 |
|
|
Unrealized Gain (Loss) on Investment
Securities Available for Sale |
|
March 31, 2019 |
|
December 31, 2018 |
|
September 30, 2018 |
|
June 30, 2018 |
|
March 31, 2018 |
U.S. Treasury
securities |
$ |
— |
|
|
$ |
(13 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Obligations of the U.S.
Government and agencies |
(1,334 |
) |
|
(2,749 |
) |
|
(5,881 |
) |
|
(4,594 |
) |
|
(3,756 |
) |
State & political
subdivisions - tax-free |
(5 |
) |
|
(39 |
) |
|
(90 |
) |
|
(57 |
) |
|
(74 |
) |
State & political
subdivisions - taxable |
— |
|
|
(1 |
) |
|
(1 |
) |
|
(1 |
) |
|
(1 |
) |
Mortgage-backed
securities |
(696 |
) |
|
(4,186 |
) |
|
(7,584 |
) |
|
(6,141 |
) |
|
(5,169 |
) |
Collateralized mortgage
obligations |
(510 |
) |
|
(898 |
) |
|
(1,618 |
) |
|
(1,443 |
) |
|
(1,322 |
) |
Other debt
securities |
— |
|
|
— |
|
|
(2 |
) |
|
(3 |
) |
|
(3 |
) |
Total unrealized losses on investment securities available for
sale |
$ |
(2,545 |
) |
|
$ |
(7,886 |
) |
|
$ |
(15,176 |
) |
|
$ |
(12,239 |
) |
|
$ |
(10,325 |
) |
|
Deposits |
|
March 31, 2019 |
|
December 31, 2018 |
|
September 30, 2018 |
|
June 30, 2018 |
|
March 31, 2018 |
Interest-bearing
deposits: |
|
|
|
|
|
|
|
|
|
Interest-bearing
demand |
$ |
664,683 |
|
|
$ |
664,749 |
|
|
$ |
578,243 |
|
|
$ |
617,258 |
|
|
$ |
529,478 |
|
Money market |
961,348 |
|
|
862,644 |
|
|
812,027 |
|
|
814,530 |
|
|
856,072 |
|
Savings |
265,613 |
|
|
247,081 |
|
|
286,266 |
|
|
291,858 |
|
|
308,925 |
|
Retail time deposits |
531,522 |
|
|
542,702 |
|
|
561,123 |
|
|
536,287 |
|
|
523,138 |
|
Wholesale non-maturity deposits |
47,744 |
|
|
55,031 |
|
|
24,040 |
|
|
36,826 |
|
|
63,449 |
|
Wholesale time deposits |
284,397 |
|
|
325,261 |
|
|
261,164 |
|
|
169,770 |
|
|
171,359 |
|
Total interest-bearing deposits |
2,755,307 |
|
|
2,697,468 |
|
|
2,522,863 |
|
|
2,466,529 |
|
|
2,452,421 |
|
Noninterest-bearing deposits |
882,310 |
|
|
901,619 |
|
|
834,363 |
|
|
892,386 |
|
|
863,118 |
|
Total deposits |
$ |
3,637,617 |
|
|
$ |
3,599,087 |
|
|
$ |
3,357,226 |
|
|
$ |
3,358,915 |
|
|
$ |
3,315,539 |
|
Bryn Mawr Bank CorporationDetailed
Income Statements (unaudited)(dollars in thousands, except
per share data)
|
For the Three Months Ended |
|
March 31, 2019 |
|
December 31, 2018 |
|
September 30, 2018 |
|
June 30, 2018 |
|
March 31, 2018 |
Interest
income: |
|
|
|
|
|
|
|
|
|
Interest and fees on
loans and leases |
$ |
44,837 |
|
|
$ |
44,157 |
|
|
$ |
42,103 |
|
|
$ |
41,689 |
|
|
$ |
40,689 |
|
Interest on cash and
cash equivalents |
132 |
|
|
83 |
|
|
64 |
|
|
64 |
|
|
53 |
|
Interest on investment
securities |
3,499 |
|
|
3,294 |
|
|
3,066 |
|
|
3,001 |
|
|
2,792 |
|
Total interest income |
48,468 |
|
|
47,534 |
|
|
45,233 |
|
|
44,754 |
|
|
43,534 |
|
Interest
expense: |
|
|
|
|
|
|
|
|
|
Interest on
deposits |
8,097 |
|
|
7,048 |
|
|
5,533 |
|
|
4,499 |
|
|
3,472 |
|
Interest on short-term
borrowings |
943 |
|
|
681 |
|
|
1,096 |
|
|
985 |
|
|
630 |
|
Interest on FHLB
advances |
278 |
|
|
331 |
|
|
394 |
|
|
490 |
|
|
562 |
|
Interest on jr.
subordinated debentures |
358 |
|
|
342 |
|
|
337 |
|
|
321 |
|
|
288 |
|
Interest on
subordinated notes |
1,145 |
|
|
1,145 |
|
|
1,144 |
|
|
1,143 |
|
|
1,143 |
|
Total interest
expense |
10,821 |
|
|
9,547 |
|
|
8,504 |
|
|
7,438 |
|
|
6,095 |
|
Net interest income |
37,647 |
|
|
37,987 |
|
|
36,729 |
|
|
37,316 |
|
|
37,439 |
|
Provision for loan and
lease losses (the "Provision") |
3,736 |
|
|
2,362 |
|
|
664 |
|
|
3,137 |
|
|
1,030 |
|
Net interest income after Provision |
33,911 |
|
|
35,625 |
|
|
36,065 |
|
|
34,179 |
|
|
36,409 |
|
Noninterest
income: |
|
|
|
|
|
|
|
|
|
Fees for wealth
management services |
10,392 |
|
|
11,017 |
|
|
10,343 |
|
|
10,658 |
|
|
10,308 |
|
Insurance
commissions |
1,672 |
|
|
1,459 |
|
|
1,754 |
|
|
1,902 |
|
|
1,693 |
|
Capital markets
revenue |
2,219 |
|
|
1,367 |
|
|
710 |
|
|
2,105 |
|
|
666 |
|
Service charges on
deposits |
808 |
|
|
798 |
|
|
726 |
|
|
752 |
|
|
713 |
|
Loan servicing and
other fees |
609 |
|
|
539 |
|
|
559 |
|
|
475 |
|
|
686 |
|
Net gain on sale of
loans |
319 |
|
|
1,606 |
|
|
631 |
|
|
528 |
|
|
518 |
|
Net gain on sale of
investment securities available for sale |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
7 |
|
Net gain (loss) on sale
of other real estate owned |
(24 |
) |
|
3 |
|
|
5 |
|
|
111 |
|
|
176 |
|
Dividends on FHLB and
FRB stocks |
411 |
|
|
305 |
|
|
375 |
|
|
510 |
|
|
431 |
|
Other operating
income |
2,847 |
|
|
1,003 |
|
|
3,171 |
|
|
3,034 |
|
|
4,338 |
|
Total noninterest income |
19,253 |
|
|
18,097 |
|
|
18,274 |
|
|
20,075 |
|
|
19,536 |
|
Noninterest
expense: |
|
|
|
|
|
|
|
|
|
Salaries and wages |
20,901 |
|
|
17,921 |
|
|
16,528 |
|
|
16,240 |
|
|
15,982 |
|
Employee benefits |
4,166 |
|
|
2,977 |
|
|
3,356 |
|
|
2,877 |
|
|
3,708 |
|
Occupancy and bank
premises |
3,252 |
|
|
3,135 |
|
|
2,717 |
|
|
2,697 |
|
|
3,050 |
|
Furniture, fixtures and
equipment |
2,389 |
|
|
2,370 |
|
|
2,070 |
|
|
2,069 |
|
|
1,898 |
|
Advertising |
415 |
|
|
540 |
|
|
349 |
|
|
369 |
|
|
461 |
|
Amortization of
intangible assets |
938 |
|
|
997 |
|
|
891 |
|
|
889 |
|
|
879 |
|
Impairment (recovery)
of mortgage servicing rights ("MSRs") |
17 |
|
|
101 |
|
|
(23 |
) |
|
(1 |
) |
|
(50 |
) |
Due diligence,
merger-related and merger integration expenses |
— |
|
|
— |
|
|
389 |
|
|
3,053 |
|
|
4,319 |
|
Professional fees |
1,320 |
|
|
1,526 |
|
|
997 |
|
|
932 |
|
|
748 |
|
Pennsylvania bank
shares tax |
409 |
|
|
374 |
|
|
472 |
|
|
473 |
|
|
473 |
|
Information
technology |
1,320 |
|
|
1,340 |
|
|
1,155 |
|
|
1,252 |
|
|
1,195 |
|
Other operating
expenses |
4,597 |
|
|
3,564 |
|
|
4,691 |
|
|
4,986 |
|
|
3,367 |
|
Total noninterest expense |
39,724 |
|
|
34,845 |
|
|
33,592 |
|
|
35,836 |
|
|
36,030 |
|
Income before income
taxes |
13,440 |
|
|
18,877 |
|
|
20,747 |
|
|
18,418 |
|
|
19,915 |
|
Income tax expense |
2,764 |
|
|
1,746 |
|
|
4,066 |
|
|
3,723 |
|
|
4,630 |
|
Net income |
$ |
10,676 |
|
|
$ |
17,131 |
|
|
$ |
16,681 |
|
|
$ |
14,695 |
|
|
$ |
15,285 |
|
Net (loss)
income attributable to noncontrolling interest |
(1 |
) |
|
(5 |
) |
|
(1 |
) |
|
7 |
|
|
(1 |
) |
Net income attributable to Bryn Mawr Bank
Corporation |
$ |
10,677 |
|
|
$ |
17,136 |
|
|
$ |
16,682 |
|
|
$ |
14,688 |
|
|
$ |
15,286 |
|
|
|
|
|
|
|
|
|
|
|
Per share
data: |
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding |
20,168,498 |
|
|
20,225,993 |
|
|
20,270,706 |
|
|
20,238,852 |
|
|
20,202,969 |
|
Dilutive common
shares |
103,163 |
|
|
95,290 |
|
|
167,670 |
|
|
174,726 |
|
|
247,525 |
|
Weighted average
diluted shares |
20,271,661 |
|
|
20,321,283 |
|
|
20,438,376 |
|
|
20,413,578 |
|
|
20,450,494 |
|
Basic earnings per
common share |
$ |
0.53 |
|
|
$ |
0.85 |
|
|
$ |
0.82 |
|
|
$ |
0.73 |
|
|
$ |
0.76 |
|
Diluted earnings per
common share |
$ |
0.53 |
|
|
$ |
0.84 |
|
|
$ |
0.82 |
|
|
$ |
0.72 |
|
|
$ |
0.75 |
|
Dividends paid or
accrued per share |
$ |
0.25 |
|
|
$ |
0.25 |
|
|
$ |
0.25 |
|
|
$ |
0.22 |
|
|
$ |
0.22 |
|
Effective tax rate |
20.57 |
% |
|
9.25 |
% |
|
19.60 |
% |
|
20.21 |
% |
|
23.25 |
% |
Bryn Mawr Bank
CorporationTax-Equivalent Net Interest Margin
(unaudited)(dollars in thousands, except per share
data)
|
For the Three Months Ended |
|
March 31, 2019 |
December 31, 2018 |
September 30, 2018 |
June 30, 2018 |
March 31, 2018 |
(dollars in
thousands) |
AverageBalance |
InterestIncome/Expense |
Average RatesEarned/
Paid |
Average Balance |
Interest Income/ Expense |
Average RatesEarned/
Paid |
Average Balance |
Interest Income/ Expense |
Average RatesEarned/
Paid |
Average Balance |
Interest Income/ Expense |
Average RatesEarned/
Paid |
Average Balance |
Interest Income/ Expense |
Average RatesEarned/
Paid |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits with other banks |
$ |
32,742 |
|
$ |
132 |
|
1.64 |
% |
$ |
38,957 |
|
$ |
83 |
|
0.85 |
% |
$ |
37,467 |
|
$ |
64 |
|
0.68 |
% |
$ |
37,215 |
|
$ |
64 |
|
0.69 |
% |
$ |
38,044 |
|
$ |
53 |
|
0.56 |
% |
Investment securities -
available for sale: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
543,687 |
|
3,419 |
|
2.55 |
% |
524,117 |
|
3,129 |
|
2.37 |
% |
514,360 |
|
2,960 |
|
2.28 |
% |
514,966 |
|
2,888 |
|
2.25 |
% |
498,718 |
|
2,675 |
|
2.18 |
% |
Tax-exempt |
9,795 |
|
168 |
|
6.96 |
% |
13,184 |
|
70 |
|
2.11 |
% |
16,056 |
|
83 |
|
2.05 |
% |
18,215 |
|
93 |
|
2.05 |
% |
20,501 |
|
100 |
|
1.98 |
% |
Total
investment securities - available for sale |
553,482 |
|
3,587 |
|
2.63 |
% |
537,301 |
|
3,199 |
|
2.36 |
% |
530,416 |
|
3,043 |
|
2.28 |
% |
533,181 |
|
2,981 |
|
2.24 |
% |
519,219 |
|
2,775 |
|
2.17 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities -
held to maturity |
8,804 |
|
11 |
|
0.51 |
% |
8,761 |
|
9 |
|
0.41 |
% |
8,378 |
|
5 |
|
0.24 |
% |
7,866 |
|
13 |
|
0.66 |
% |
7,913 |
|
12 |
|
0.62 |
% |
Investment securities -
trading |
7,629 |
|
22 |
|
1.17 |
% |
8,203 |
|
96 |
|
4.64 |
% |
8,204 |
|
30 |
|
1.45 |
% |
8,202 |
|
22 |
|
1.08 |
% |
8,339 |
|
21 |
|
1.02 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and leases * |
3,477,739 |
|
44,845 |
|
5.23 |
% |
3,399,484 |
|
44,274 |
|
5.17 |
% |
3,379,699 |
|
42,214 |
|
4.96 |
% |
3,353,339 |
|
41,782 |
|
5.00 |
% |
3,291,212 |
|
40,754 |
|
5.02 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
interest-earning assets |
4,080,396 |
|
48,597 |
|
4.83 |
% |
3,992,706 |
|
47,661 |
|
4.74 |
% |
3,964,164 |
|
45,356 |
|
4.54 |
% |
3,939,803 |
|
44,862 |
|
4.57 |
% |
3,864,727 |
|
43,615 |
|
4.58 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks |
14,414 |
|
|
|
13,962 |
|
|
|
7,587 |
|
|
|
7,153 |
|
|
|
10,698 |
|
|
|
Less: allowance for
loan and lease losses |
(19,887 |
) |
|
|
(18,625 |
) |
|
|
(19,467 |
) |
|
|
(18,043 |
) |
|
|
(17,628 |
) |
|
|
Other assets |
470,206 |
|
|
|
424,957 |
|
|
|
423,864 |
|
|
|
415,628 |
|
|
|
388,383 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets |
$ |
4,545,129 |
|
|
|
$ |
4,413,000 |
|
|
|
$ |
4,376,148 |
|
|
|
$ |
4,344,541 |
|
|
|
$ |
4,246,180 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings, NOW and market
rate deposits |
$ |
1,798,103 |
|
$ |
3,764 |
|
0.85 |
% |
$ |
1,704,065 |
|
$ |
2,883 |
|
0.67 |
% |
$ |
1,695,214 |
|
$ |
2,425 |
|
0.57 |
% |
$ |
1,722,328 |
|
$ |
2,073 |
|
0.48 |
% |
$ |
1,676,733 |
|
$ |
1,479 |
|
0.36 |
% |
Wholesale
deposits |
342,696 |
|
2,012 |
|
2.38 |
% |
346,134 |
|
1,986 |
|
2.28 |
% |
256,347 |
|
1,329 |
|
2.06 |
% |
233,714 |
|
973 |
|
1.67 |
% |
231,289 |
|
733 |
|
1.29 |
% |
Retail
time deposits |
533,395 |
|
2,321 |
|
1.76 |
% |
552,213 |
|
2,179 |
|
1.57 |
% |
541,652 |
|
1,779 |
|
1.30 |
% |
533,254 |
|
1,453 |
|
1.09 |
% |
527,469 |
|
1,260 |
|
0.97 |
% |
Total
interest-bearing deposits |
2,674,194 |
|
8,097 |
|
1.23 |
% |
2,602,412 |
|
7,048 |
|
1.07 |
% |
2,493,213 |
|
5,533 |
|
0.88 |
% |
2,489,296 |
|
4,499 |
|
0.72 |
% |
2,435,491 |
|
3,472 |
|
0.58 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term
borrowings |
157,652 |
|
943 |
|
2.43 |
% |
128,429 |
|
681 |
|
2.10 |
% |
208,201 |
|
1,096 |
|
2.09 |
% |
205,323 |
|
985 |
|
1.92 |
% |
172,534 |
|
630 |
|
1.48 |
% |
Long-term FHLB
advances |
55,385 |
|
278 |
|
2.04 |
% |
67,363 |
|
331 |
|
1.95 |
% |
81,460 |
|
394 |
|
1.92 |
% |
102,023 |
|
490 |
|
1.93 |
% |
123,920 |
|
562 |
|
1.84 |
% |
Subordinated notes |
98,542 |
|
1,145 |
|
4.71 |
% |
98,497 |
|
1,145 |
|
4.61 |
% |
98,457 |
|
1,144 |
|
4.61 |
% |
98,463 |
|
1,143 |
|
4.66 |
% |
98,430 |
|
1,143 |
|
4.71 |
% |
Jr. subordinated debt |
21,595 |
|
358 |
|
6.72 |
% |
21,553 |
|
342 |
|
6.30 |
% |
21,511 |
|
337 |
|
6.22 |
% |
21,470 |
|
321 |
|
6.00 |
% |
21,430 |
|
288 |
|
5.45 |
% |
Total
borrowings |
333,174 |
|
2,724 |
|
3.32 |
% |
315,842 |
|
2,499 |
|
3.14 |
% |
409,629 |
|
2,971 |
|
2.88 |
% |
427,279 |
|
2,939 |
|
2.76 |
% |
416,314 |
|
2,623 |
|
2.56 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
interest-bearing liabilities |
3,007,368 |
|
10,821 |
|
1.46 |
% |
2,918,254 |
|
9,547 |
|
1.30 |
% |
2,902,842 |
|
8,504 |
|
1.16 |
% |
2,916,575 |
|
7,438 |
|
1.02 |
% |
2,851,805 |
|
6,095 |
|
0.87 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits |
871,726 |
|
|
|
878,047 |
|
|
|
866,314 |
|
|
|
841,676 |
|
|
|
835,476 |
|
|
|
Other liabilities |
93,949 |
|
|
|
60,393 |
|
|
|
59,085 |
|
|
|
52,389 |
|
|
|
32,465 |
|
|
|
Total
noninterest-bearing liabilities |
965,675 |
|
|
|
938,440 |
|
|
|
925,399 |
|
|
|
894,065 |
|
|
|
867,941 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities |
3,973,043 |
|
|
|
3,856,694 |
|
|
|
3,828,241 |
|
|
|
3,810,640 |
|
|
|
3,719,746 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity |
572,086 |
|
|
|
556,306 |
|
|
|
547,907 |
|
|
|
533,901 |
|
|
|
526,434 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities and shareholders' equity |
$ |
4,545,129 |
|
|
|
$ |
4,413,000 |
|
|
|
$ |
4,376,148 |
|
|
|
$ |
4,344,541 |
|
|
|
$ |
4,246,180 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
spread |
|
|
3.37 |
% |
|
|
3.44 |
% |
|
|
3.38 |
% |
|
|
3.55 |
% |
|
|
3.71 |
% |
Effect of
noninterest-bearing sources |
|
|
0.38 |
% |
|
|
0.35 |
% |
|
|
0.31 |
% |
|
|
0.26 |
% |
|
|
0.23 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax-equivalent net
interest margin |
|
$ |
37,776 |
|
3.75 |
% |
|
$ |
38,114 |
|
3.79 |
% |
|
$ |
36,852 |
|
3.69 |
% |
|
$ |
37,424 |
|
3.81 |
% |
|
$ |
37,520 |
|
3.94 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax-equivalent
adjustment |
|
$ |
129 |
|
0.01 |
% |
|
$ |
127 |
|
0.01 |
% |
|
$ |
123 |
|
0.01 |
% |
|
$ |
108 |
|
0.01 |
% |
|
$ |
81 |
|
0.01 |
% |
* 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. |
Supplemental Information Regarding Accretion of Fair
Value Marks
|
For the Three Months Ended |
|
March 31, 2019 |
December 31, 2018 |
September 30, 2018 |
June 30, 2018 |
March 31, 2018 |
(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 |
Loans and leases |
Income |
$ |
1,997 |
|
0.23 |
% |
|
$ |
2,492 |
|
0.29 |
% |
|
$ |
1,464 |
|
0.17 |
% |
|
$ |
1,945 |
|
0.23 |
% |
|
$ |
2,702 |
|
0.33 |
% |
Retail time
deposits |
Expense |
(222 |
) |
(0.17 |
)% |
|
(279 |
) |
(0.20 |
)% |
|
(311 |
) |
(0.23 |
)% |
|
(339 |
) |
(0.25 |
)% |
|
(380 |
) |
(0.29 |
)% |
Long-term FHLB
advances |
Expense |
33 |
|
0.24 |
% |
|
34 |
|
0.20 |
% |
|
32 |
|
0.16 |
% |
|
25 |
|
0.10 |
% |
|
15 |
|
0.05 |
% |
Jr. subordinated
debt |
Expense |
42 |
|
0.79 |
% |
|
42 |
|
0.77 |
% |
|
41 |
|
0.76 |
% |
|
41 |
|
0.77 |
% |
|
40 |
|
0.76 |
% |
Net interest income
from fair value marks |
|
$ |
2,144 |
|
|
|
$ |
2,695 |
|
|
|
$ |
1,702 |
|
|
|
$ |
2,218 |
|
|
|
$ |
3,027 |
|
|
Purchase accounting
effect on tax-equivalent margin |
|
|
0.21 |
% |
|
|
0.27 |
% |
|
|
0.17 |
% |
|
|
0.23 |
% |
|
|
0.32 |
% |
Bryn Mawr Bank CorporationAppendix -
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, 2019 |
|
December 31, 2018 |
|
September 30, 2018 |
|
June 30, 2018 |
|
March 31, 2018 |
Reconciliation
of Net Income to Net Income (core): |
|
|
|
|
|
|
|
|
|
Net income attributable
to BMBC (a GAAP measure) |
$ |
10,677 |
|
|
$ |
17,136 |
|
|
$ |
16,682 |
|
|
$ |
14,688 |
|
|
$ |
15,286 |
|
Less: Tax-effected
non-core noninterest income: |
|
|
|
|
|
|
|
|
|
Gain on
sale of investment securities available for sale |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(6 |
) |
Add: Tax-effected
non-core noninterest expense items: |
|
|
|
|
|
|
|
|
|
Due
diligence, merger-related and merger integration expenses |
— |
|
|
— |
|
|
307 |
|
|
2,412 |
|
|
3,412 |
|
Voluntary
years of service incentive program expenses |
3,553 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Add: Federal income tax
expense related to re-measurement of net deferred tax asset due to
tax reform legislation |
— |
|
|
31 |
|
|
151 |
|
|
(69 |
) |
|
590 |
|
Net income
(core) (a non-GAAP measure) |
$ |
14,230 |
|
|
$ |
17,167 |
|
|
$ |
17,140 |
|
|
$ |
17,031 |
|
|
$ |
19,282 |
|
|
|
|
|
|
|
|
|
|
|
Calculation of
Basic and Diluted Earnings per Common Share (core): |
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding |
20,168,498 |
|
|
20,225,993 |
|
|
20,270,706 |
|
|
20,238,852 |
|
|
20,202,969 |
|
Dilutive common
shares |
103,163 |
|
|
95,290 |
|
|
167,670 |
|
|
174,726 |
|
|
247,525 |
|
Weighted average
diluted shares |
20,271,661 |
|
|
20,321,283 |
|
|
20,438,376 |
|
|
20,413,578 |
|
|
20,450,494 |
|
Basic earnings per
common share (core) (a non-GAAP measure) |
$ |
0.71 |
|
|
$ |
0.85 |
|
|
$ |
0.85 |
|
|
$ |
0.84 |
|
|
$ |
0.95 |
|
Diluted earnings per
common share (core) (a non-GAAP measure) |
$ |
0.70 |
|
|
$ |
0.84 |
|
|
$ |
0.84 |
|
|
$ |
0.83 |
|
|
$ |
0.94 |
|
|
|
|
|
|
|
|
|
|
|
Calculation of
Return on Average Tangible Equity: |
|
|
|
|
|
|
|
|
|
Net income attributable
to BMBC (a GAAP measure) |
$ |
10,677 |
|
|
$ |
17,136 |
|
|
$ |
16,682 |
|
|
$ |
14,688 |
|
|
$ |
15,286 |
|
Add: Tax-effected
amortization and impairment of intangible assets |
741 |
|
|
787 |
|
|
705 |
|
|
702 |
|
|
694 |
|
Net tangible income
(numerator) |
$ |
11,418 |
|
|
$ |
17,923 |
|
|
$ |
17,387 |
|
|
$ |
15,390 |
|
|
$ |
15,980 |
|
|
|
|
|
|
|
|
|
|
|
Average shareholders'
equity |
$ |
572,086 |
|
|
$ |
556,306 |
|
|
$ |
547,907 |
|
|
$ |
533,901 |
|
|
$ |
526,434 |
|
Less: Average
Noncontrolling interest |
685 |
|
|
681 |
|
|
678 |
|
|
685 |
|
|
683 |
|
Less: Average goodwill
and intangible assets |
(206,716 |
) |
|
(207,893 |
) |
|
(207,880 |
) |
|
(208,039 |
) |
|
(205,529 |
) |
Net average tangible
equity (denominator) |
$ |
366,055 |
|
|
$ |
349,094 |
|
|
$ |
340,705 |
|
|
$ |
326,547 |
|
|
$ |
321,588 |
|
|
|
|
|
|
|
|
|
|
|
Return on
tangible equity (a non-GAAP measure) |
12.65 |
% |
|
20.37 |
% |
|
20.25 |
% |
|
18.90 |
% |
|
20.15 |
% |
|
|
|
|
|
|
|
|
|
|
Calculation of
Return on Average Tangible Equity (core): |
|
|
|
|
|
|
|
|
|
Net income (core) (a
non-GAAP measure) |
$ |
14,230 |
|
|
$ |
17,167 |
|
|
$ |
17,140 |
|
|
$ |
17,031 |
|
|
$ |
19,282 |
|
Add: Tax-effected
amortization and impairment of intangible assets |
741 |
|
|
787 |
|
|
705 |
|
|
702 |
|
|
694 |
|
Net tangible income
(core) (numerator) |
$ |
14,971 |
|
|
$ |
17,954 |
|
|
$ |
17,845 |
|
|
$ |
17,733 |
|
|
$ |
19,976 |
|
|
|
|
|
|
|
|
|
|
|
Average shareholders'
equity |
$ |
572,086 |
|
|
$ |
556,306 |
|
|
$ |
547,907 |
|
|
$ |
533,901 |
|
|
$ |
526,434 |
|
Less: Average
Noncontrolling interest |
685 |
|
|
681 |
|
|
678 |
|
|
685 |
|
|
683 |
|
Less: Average goodwill
and intangible assets |
(206,716 |
) |
|
(207,893 |
) |
|
(207,880 |
) |
|
(208,039 |
) |
|
(205,529 |
) |
Net average tangible
equity (denominator) |
$ |
366,055 |
|
|
$ |
349,094 |
|
|
$ |
340,705 |
|
|
$ |
326,547 |
|
|
$ |
321,588 |
|
|
|
|
|
|
|
|
|
|
|
Return on
tangible equity (core) (a non-GAAP measure) |
16.59 |
% |
|
20.40 |
% |
|
20.78 |
% |
|
21.78 |
% |
|
25.19 |
% |
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, 2019 |
|
December 31, 2018 |
|
September 30, 2018 |
|
June 30, 2018 |
|
March 31, 2018 |
Calculation of
Tangible Equity Ratio (BMBC): |
|
|
|
|
|
|
|
|
|
Total shareholders'
equity |
$ |
575,107 |
|
|
$ |
564,704 |
|
|
$ |
551,425 |
|
|
$ |
542,503 |
|
|
$ |
533,061 |
|
Less: Noncontrolling
interest |
686 |
|
|
685 |
|
|
678 |
|
|
677 |
|
|
684 |
|
Less: Goodwill and
intangible assets |
(206,006 |
) |
|
(207,467 |
) |
|
(208,165 |
) |
|
(208,139 |
) |
|
(207,287 |
) |
Net tangible equity
(numerator) |
$ |
369,787 |
|
|
$ |
357,922 |
|
|
$ |
343,938 |
|
|
$ |
335,041 |
|
|
$ |
326,458 |
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
4,631,993 |
|
|
$ |
4,652,485 |
|
|
$ |
4,388,442 |
|
|
$ |
4,394,203 |
|
|
$ |
4,300,376 |
|
Less: Goodwill and
intangible assets |
(206,006 |
) |
|
(207,467 |
) |
|
(208,165 |
) |
|
(208,139 |
) |
|
(207,287 |
) |
Tangible assets
(denominator) |
$ |
4,425,987 |
|
|
$ |
4,445,018 |
|
|
$ |
4,180,277 |
|
|
$ |
4,186,064 |
|
|
$ |
4,093,089 |
|
|
|
|
|
|
|
|
|
|
|
Tangible equity
ratio (BMBC)(1) |
8.35 |
% |
|
8.05 |
% |
|
8.23 |
% |
|
8.00 |
% |
|
7.98 |
% |
|
|
|
|
|
|
|
|
|
|
Calculation of
Tangible Equity Ratio (BMTC): |
|
|
|
|
|
|
|
|
|
Total shareholders'
equity |
$ |
605,985 |
|
|
$ |
591,695 |
|
|
$ |
582,698 |
|
|
$ |
582,354 |
|
|
$ |
569,670 |
|
Less: Noncontrolling
interest |
686 |
|
|
685 |
|
|
678 |
|
|
677 |
|
|
684 |
|
Less: Goodwill and
intangible assets |
(193,329 |
) |
|
(194,715 |
) |
|
(195,337 |
) |
|
(195,245 |
) |
|
(194,316 |
) |
Net tangible equity
(numerator) |
$ |
413,342 |
|
|
$ |
397,665 |
|
|
$ |
388,039 |
|
|
$ |
387,786 |
|
|
$ |
376,038 |
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
4,616,724 |
|
|
$ |
4,637,481 |
|
|
$ |
4,372,590 |
|
|
$ |
4,378,508 |
|
|
$ |
4,284,334 |
|
Less: Goodwill and
intangible assets |
(193,329 |
) |
|
(194,715 |
) |
|
(195,337 |
) |
|
(195,245 |
) |
|
(194,316 |
) |
Tangible assets
(denominator) |
$ |
4,423,395 |
|
|
$ |
4,442,766 |
|
|
$ |
4,177,253 |
|
|
$ |
4,183,263 |
|
|
$ |
4,090,018 |
|
|
|
|
|
|
|
|
|
|
|
Tangible equity
ratio (BMTC)(1) |
9.34 |
% |
|
8.95 |
% |
|
9.29 |
% |
|
9.27 |
% |
|
9.19 |
% |
|
|
|
|
|
|
|
|
|
|
Calculation of
Return on Average Assets (core) |
|
|
|
|
|
|
|
|
|
Return on average
assets (GAAP) |
0.95 |
% |
|
1.54 |
% |
|
1.51 |
% |
|
1.36 |
% |
|
1.46 |
% |
Effect of adjustment to
GAAP net income to core net income |
0.32 |
% |
|
— |
% |
|
0.04 |
% |
|
0.21 |
% |
|
0.38 |
% |
Return on average
assets (core) |
1.27 |
% |
|
1.54 |
% |
|
1.55 |
% |
|
1.57 |
% |
|
1.84 |
% |
|
|
|
|
|
|
|
|
|
|
Calculation of
Return on Average Equity (core) |
|
|
|
|
|
|
|
|
|
Return on average
equity (GAAP) |
7.57 |
% |
|
12.22 |
% |
|
12.08 |
% |
|
11.03 |
% |
|
11.78 |
% |
Effect of adjustment to
GAAP net income to core net income |
2.52 |
% |
|
0.02 |
% |
|
0.33 |
% |
|
1.76 |
% |
|
3.07 |
% |
Return on average
equity (core) |
10.09 |
% |
|
12.24 |
% |
|
12.41 |
% |
|
12.79 |
% |
|
14.85 |
% |
|
|
|
|
|
|
|
|
|
|
Calculation of
Tax-equivalent net interest margin adjusting for the impact of
purchase accounting |
|
|
|
|
|
|
|
|
|
Tax-equivalent net
interest margin |
3.75 |
% |
|
3.79 |
% |
|
3.69 |
% |
|
3.81 |
% |
|
3.94 |
% |
Effect of fair value
marks |
0.21 |
% |
|
0.27 |
% |
|
0.17 |
% |
|
0.23 |
% |
|
0.32 |
% |
Tax-equivalent net
interest margin adjusting for the impact of purchase
accounting |
3.54 |
% |
|
3.52 |
% |
|
3.52 |
% |
|
3.58 |
% |
|
3.62 |
% |
- Capital Ratios for the current quarter are to be considered
preliminary until the Call Reports are filed.
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, 2019 |
|
December 31, 2018 |
|
September 30, 2018 |
|
June 30, 2018 |
|
March 31, 2018 |
Calculation of
Tax-equivalent net interest income adjusting for the impact of
purchase accounting |
|
|
|
|
|
|
|
|
|
Tax-equivalent net
interest income |
$ |
37,776 |
|
|
$ |
38,114 |
|
|
$ |
36,852 |
|
|
$ |
37,424 |
|
|
$ |
37,520 |
|
Effect of fair value
marks |
2,144 |
|
|
2,695 |
|
|
1,702 |
|
|
2,218 |
|
|
3,027 |
|
Tax-equivalent net
interest income adjusting for the impact of purchase
accounting |
$ |
35,632 |
|
|
$ |
35,419 |
|
|
$ |
35,150 |
|
|
$ |
35,206 |
|
|
$ |
34,493 |
|
|
|
|
|
|
|
|
|
|
|
Calculation of
Efficiency Ratio: |
|
|
|
|
|
|
|
|
|
Noninterest
expense |
$ |
39,724 |
|
|
$ |
34,845 |
|
|
$ |
33,592 |
|
|
$ |
35,836 |
|
|
$ |
36,030 |
|
Less: certain
noninterest expense items*: |
|
|
|
|
|
|
|
|
|
Amortization of intangibles |
(938 |
) |
|
(997 |
) |
|
(891 |
) |
|
(889 |
) |
|
(879 |
) |
Due
diligence, merger-related and merger integration expenses |
— |
|
|
— |
|
|
(389 |
) |
|
(3,053 |
) |
|
(4,319 |
) |
Voluntary
years of service incentive program expenses |
(4,498 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Noninterest expense
(adjusted) (numerator) |
$ |
34,288 |
|
|
$ |
33,848 |
|
|
$ |
32,312 |
|
|
$ |
31,894 |
|
|
$ |
30,832 |
|
|
|
|
|
|
|
|
|
|
|
Noninterest income |
$ |
19,253 |
|
|
$ |
18,097 |
|
|
$ |
18,274 |
|
|
$ |
20,075 |
|
|
$ |
19,536 |
|
Less: non-core
noninterest income items: |
|
|
|
|
|
|
|
|
|
Gain on
sale of investment securities available for sale |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(7 |
) |
Noninterest income
(core) |
$ |
19,253 |
|
|
$ |
18,097 |
|
|
$ |
18,274 |
|
|
$ |
20,075 |
|
|
$ |
19,529 |
|
Net interest
income |
37,647 |
|
|
37,987 |
|
|
36,729 |
|
|
37,316 |
|
|
37,439 |
|
Noninterest income
(core) and net interest income (denominator) |
$ |
56,900 |
|
|
$ |
56,084 |
|
|
$ |
55,003 |
|
|
$ |
57,391 |
|
|
$ |
56,968 |
|
|
|
|
|
|
|
|
|
|
|
Efficiency
ratio |
60.26 |
% |
|
60.35 |
% |
|
58.75 |
% |
|
55.57 |
% |
|
54.12 |
% |
|
|
|
|
|
|
|
|
|
|
Supplemental
Loan and Allowance Information Used to Calculate Non-GAAP
Measures |
|
|
|
|
|
|
|
|
|
Total Allowance |
$ |
20,616 |
|
|
$ |
19,426 |
|
|
$ |
18,684 |
|
|
$ |
19,398 |
|
|
$ |
17,662 |
|
Less: Allowance on
acquired loans |
97 |
|
|
97 |
|
|
72 |
|
|
217 |
|
|
92 |
|
Allowance on originated
loans and leases |
$ |
20,519 |
|
|
$ |
19,329 |
|
|
$ |
18,612 |
|
|
$ |
19,181 |
|
|
$ |
17,570 |
|
|
|
|
|
|
|
|
|
|
|
Total Allowance |
$ |
20,616 |
|
|
$ |
19,426 |
|
|
$ |
18,684 |
|
|
$ |
19,398 |
|
|
$ |
17,662 |
|
Loan mark on acquired
loans |
15,841 |
|
|
17,822 |
|
|
24,964 |
|
|
26,705 |
|
|
32,260 |
|
Total Allowance + Loan
mark |
$ |
36,457 |
|
|
$ |
37,248 |
|
|
$ |
43,648 |
|
|
$ |
46,103 |
|
|
$ |
49,922 |
|
|
|
|
|
|
|
|
|
|
|
Total Portfolio loans
and leases |
$ |
3,523,514 |
|
|
$ |
3,427,154 |
|
|
$ |
3,381,475 |
|
|
$ |
3,389,501 |
|
|
$ |
3,305,795 |
|
Less: Originated loans
and leases |
3,032,270 |
|
|
2,885,251 |
|
|
2,752,160 |
|
|
2,700,815 |
|
|
2,564,827 |
|
Net acquired loans |
$ |
491,244 |
|
|
$ |
541,903 |
|
|
$ |
629,315 |
|
|
$ |
688,686 |
|
|
$ |
740,968 |
|
Add: Loan mark on
acquired loans |
15,841 |
|
|
17,822 |
|
|
24,964 |
|
|
26,705 |
|
|
32,260 |
|
Gross acquired loans
(excludes loan mark) |
$ |
507,085 |
|
|
$ |
559,725 |
|
|
$ |
654,279 |
|
|
$ |
715,391 |
|
|
$ |
773,228 |
|
Originated loans and
leases |
3,032,270 |
|
|
2,885,251 |
|
|
2,752,160 |
|
|
2,700,815 |
|
|
2,564,827 |
|
Total Gross portfolio
loans and leases |
$ |
3,539,355 |
|
|
$ |
3,444,976 |
|
|
$ |
3,406,439 |
|
|
$ |
3,416,206 |
|
|
$ |
3,338,055 |
|
- 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.
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