BRYN MAWR BANK CORP - FORM 8-K - EX-99.1

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8-K - 8-K - BRYN MAWR BANK CORP	d763271d8k.htm
EX-99.2 - EX-99.2 - BRYN MAWR BANK CORP	d763271dex992.htm

Exhibit 99.1

LOGO

Bryn Mawr Bank Corporation


FOR RELEASE: IMMEDIATELY		Ted Peters, Chairman, CEO
FOR MORE INFORMATION CONTACT:		610-581-4800
		J. Duncan Smith, CFO
		610-526-2466

Bryn Mawr Bank Corporation Reports Record Earnings of $7.6 Million,

Increases Dividend 5.6% to $0.19, Wealth Assets Reach $7.6 Billion

BRYN MAWR, Pa., July 24, 2014 – Bryn Mawr Bank Corporation (NASDAQ: BMTC), (the “Corporation”), parent of The Bryn Mawr Trust Company (the “Bank”), today reported net income of $7.6 million and diluted earnings per share of $0.55 for the three months ended June 30, 2014, as compared to net income of $6.3 million and diluted earnings per share of $0.46 for the same period in 2013. Net income for the three months ended June 30, 2014 included pre-tax due diligence and merger-related expenses of $377 thousand as compared to $688 thousand for the same period in 2013.

Significant factors contributing to the record results for the three months ended June 30, 2014, as compared to the same period in 2013, included increases in net interest income and wealth management revenues, bolstered by a decrease in provision for loan and lease losses between periods. These improvements were partially offset by a decrease in the gain on sale of residential mortgage loans.

“We are delighted to see the continued quarter-over-quarter increase in earnings,” said Ted Peters, Chairman and Chief Executive Officer, adding that, “The excellent health of our loan portfolio and continued growth of our wealth division are encouraging signs as we head into the second half of 2014.”

The pending merger with Continental Bank Holdings, Inc. (“CBH”), is progressing as planned and remains subject to approval by CBH’s and the Corporation’s shareholders, and applicable regulators. Frank Leto, President and Chief Operating Officer commented, “As the CBH merger moves closer to completion, we are very excited to join forces with their staff and to expand the Bank’s footprint to serve a much broader segment of the surrounding communities.”

As an indication of its confidence in the Corporation’s business plan and the plan’s execution, on July 24, 2014, the Board of Directors of the Corporation declared a quarterly dividend of $0.19 per share, an increase of 5.6% from the previous quarter, payable September 1, 2014 to shareholders of record as of August 5, 2014.

SIGNIFICANT ITEMS OF NOTE

Results of Operations – 2nd Quarter 2014 Compared to the 2nd Quarter 2013

•

Net income of $7.6 million for the three months ended June 30, 2014 increased $1.4 million, or 21.6%, from $6.3 million for the same period in 2013.

•

Net interest income for the three months ended June 30, 2014 was $19.4 million, an increase of $1.5 million, or 8.5%, from $17.9 million for the same period in 2013. The increase in net interest income between the periods was largely the result of a $172.3 million, or 12.1%, increase in average loans from June 30, 2013 to June 30, 2014. Segments of the loan portfolio experiencing the most significant increases included commercial mortgage, commercial and industrial, construction and residential mortgage loans. Partially offsetting this loan growth was a decrease in average available for sale investment securities of $53.9 million from June 30, 2013 to June 30, 2014, as cash flows from the investment portfolio were utilized to originate loans. In addition to the decrease in the investment portfolio, average long-term borrowings increased by $72.4, or 48.1% from June 30, 2013 to June 30, 2014, as loan demand necessitated this increase in borrowed funds.

•

The tax-equivalent net interest margin of 4.03% for the three months ended June 30, 2014 was a 5 basis point increase from 3.98% for the same period in 2013. The increase was the result of a $130.6 million increase in average interest-earning assets whose tax-equivalent yield increased by 7 basis points, partially offset by a $82.3 million increase in average interest-bearing liabilities whose tax-equivalent rate paid increased by 3 basis

points between the periods. The 7 basis point increase in the tax-equivalent yield on interest-earning assets was primarily the result of the redeployment of funds generated from pay-downs, sales and maturities of available for sale investment securities to originate loans earning substantially higher yields than the investments.

•

Non-interest income for the three months ended June 30, 2014 decreased $186 thousand as compared to the same period in 2013. The primary cause for this decline was a $955 thousand, or 64.0%, decrease in the gain on sale of residential mortgage loans. During the three months ended June 30, 2014, the volume of residential mortgage loans sold to the secondary market was significantly lower than the volume sold during the same period in 2013, with residential mortgages sold totaling $15.2 million, as compared to $46.6 million during the same period in 2013, a 67.5% decrease. Although mortgage loan sales during the second quarter of 2014 declined from the levels experienced in the second quarter of 2013, they did increase by 64.0% from the first quarter of 2014. Partially offsetting this decrease in non-interest income was a $405 thousand increase in revenue from wealth management services for the three months ended June 30, 2014 as compared to the same period in 2013. Wealth Management Division assets under management, administration, supervision and brokerage as of June 30, 2014 were $7.6 billion, an increase of $715 million, or 10.4%, from June 30, 2013. This increase was driven by organic growth due to the success of the division’s strategic initiatives, market appreciation and other new business between the dates.

•

Non-interest expense for the three months ended June 30, 2014 increased $102 thousand, to $20.6 million, as compared to $20.5 million for the same period in 2013. Several offsetting increases and decreases contributed to this small increase. Increases of $608 thousand in salaries resulted from the establishment of two senior management level positions, in addition to the payment of severance benefits and annual salary increases. In addition, professional fees increased by $250 thousand during the three months ended June 30, 2014, as compared to the same period in 2013, as the Corporation has engaged several new consultants in connection with ongoing infrastructure enhancement projects. Substantially offsetting these noninterest expense increases was a $311 thousand decrease in due diligence and merger-related expenses primarily related to the merger with

MidCoast Community Bancorp, which was terminated in August, 2013. Also, employee benefits expense experienced a $402 thousand decrease, as better-than-expected returns on pension assets in 2013 along with an increase in the discount rate used to calculate periodic pension costs helped reduce costs associated with the Corporation’s retirement plans.

•

For the three months ended June 30, 2014, the Corporation released $100 thousand from its allowance for loan and lease losses (the “Allowance”), as compared to a $1.0 million provision for loan and lease losses (the “Provision”) for the same period in 2013. Lower net charge-offs, reductions in nonperforming loans, upgrades of internally-assigned risk ratings of the Corporation’s loan portfolio as well as improvements to certain qualitative factors considered in the calculation of the Allowance contributed to this significant decrease in the Provision.

Results of Operations – 2nd Quarter 2014 Compared to the 1st Quarter 2014

•

Net income of $7.6 million for the three months ended June 30, 2014 increased $915 thousand, or 13.7%, from $6.7 million for the three months ended March 31, 2014.

•

Net interest income for the three months ended June 30, 2014 was $19.4 million, an increase of $719 thousand, or 3.8%, from $18.7 million for the three months ended March 31, 2014. The $44.0 million increase in average interest-earning assets, whose tax-equivalent yield increased by 2 basis points, was partially offset by a $39.2 million increase in average interest-bearing liabilities, whose tax-equivalent rate remained unchanged between the periods.

•

The tax-equivalent net interest margin of 4.03% for the three months ended June 30, 2014 was a 1 basis point increase from 4.02% for the three months ended March 31, 2014. The slight increase between periods resulted as a $44.0 million increase in average interest-earning assets was substantially offset by a $39.2 million increase in average interest-bearing liabilities. Although the increase in average interest-bearing liabilities nearly offset the increase in average interest-earning assets, the tax-equivalent yield earned on interest-earning assets increased by 2 basis points, while the tax-equivalent rate paid on interest-bearing liabilities remained unchanged.

•

Non-interest income for the three months ended June 30, 2014 increased $1.6 million as compared to the three months ended March 31, 2014. Significant factors contributing to this increase included a $586 thousand increase in wealth management revenues, a $213 thousand increase in gain on sale of residential mortgages, a $220 thousand increase in gain on sale of other real estate owned (“OREO”), and a $480 thousand increase in other operating income. Increases in wealth management revenues were partially related to tax work performed during the federal tax filing period along with market appreciation and new business within the division. The gain on sale of residential mortgage loans improved as loan sales increased by 64.0% on a linked-quarter basis. Four OREO properties were sold during the quarter, which resulted in a $220 thousand gain, while no sales were completed during the first quarter of 2014. Other operating income increased as a result of the receipt of dividends on Federal Reserve and FHLB capital stock, gains on trading securities and income from other investments.

•

Non-interest expense for the three months ended June 30, 2014 increased $1.7 million, to $20.6 million, as compared to $18.9 million for the three months ended March 31, 2014. The increase between the periods was largely related to increases of $1.1 million in salaries and employee benefits and $321 thousand in professional fees. The increase in salaries and employee benefits was related to higher levels of variable, incentive-based compensation and bonus accruals during the second quarter of 2014 as compared to the first quarter of 2014. In addition, staffing increases made in connection with the ongoing infrastructure enhancement projects and severance compensation contributed to the increase. The increase in professional fees was also related to the infrastructure improvements which are underway in several areas of the Bank.

•

Nonperforming loans and leases of $8.4 million as of June 30, 2014 were 0.52% of total portfolio loans and leases, as compared $10.2 million, or 0.65% of total portfolio loans and leases as of March 31, 2014. This decrease resulted as the Corporation recorded $1.5 million in payoffs and returns to performing status of previously nonperforming

loans, partially offset by $545 thousand in loans that became nonperforming between March 31, 2014 and June 30, 2014. In addition, the Corporation added one residential property and one parcel of land with an aggregate value of $685 thousand to OREO, as a result of the foreclosure of nonperforming loans. For the three months ended June 30, 2014, the Corporation recorded net loan and lease charge-offs of $200 thousand, as compared to $495 thousand for the three months ended March 31, 2014. As a result of lower net charge-offs, reductions in nonperforming loans, upgrades of internally-assigned risk ratings of the Corporation’s loan portfolio as well as overall improvements to certain qualitative factors considered in calculating the Allowance, the Corporation released $100 thousand of Allowance during the three months ended June 30, 2014, as compared to a $750 thousand Provision for the three months ended March 31, 2014.

Financial Condition – June 30, 2014 Compared to December 31, 2013

•

Total portfolio loans and leases of $1.62 billion as of June 30, 2014 increased by $68.4 million, or 4.4%, from December 31, 2013, with commercial mortgages, commercial and industrial, and construction loans accounting for a majority of the increase.

•

The allowance for loan and lease losses as of June 30, 2014 was $15.5 million, or 0.96% of portfolio loans as compared to $15.5 million, or 1.00% of portfolio loans and leases, as of December 31, 2013. As discussed above, several factors contributed to this decrease as a percentage of portfolio loans, including lower net charge-offs, reductions in nonperforming loans, upgrades of internally-assigned risk ratings of the Corporation’s loan portfolio and improvements to certain qualitative factors management considers in calculating the Allowance.

•

Total assets as of June 30, 2014 were $2.13 billion, an increase of $69.6 million from December 31, 2013. Loan originations accounted for substantially all of this increase, with funding derived from increased deposits and borrowings, as well as cash inflows from the sales, pay-downs and maturities of available for sale investment securities.

•

Deposits of $1.62 billion, as of June 30, 2014, increased $28.6 million from December 31, 2013. The increase was comprised of a $24.8 million increase in savings and money market accounts, a $14.4 million increase in wholesale deposits and a $10.1 million increase in non-interest-bearing deposits. These increases were partially offset by a $17.2 million decrease in time deposits between the dates.

•

The capital ratios for the Bank and the Corporation, as shown in the table at page 19 below, indicate levels well above the regulatory minimum to be considered “well capitalized.” The tangible equity ratios for both the Bank and the Corporation have improved from their December 31, 2013 levels of 8.78% and 8.92%, to 9.18% and 9.32%, respectively, at June 30, 2014. These increases were primarily related to an increase in retained earnings, along with increases in unrealized gains on available for sale investment securities between the dates.

EARNINGS CONFERENCE CALL

The Corporation will hold an earnings conference call at 8:30 AM EDT on Friday, July 25, 2014. Interested parties may participate by calling 1-877-504-8812. A taped replay of the conference call will be available one hour after the conclusion of the call and will remain available through 9:00 AM EDT on Monday, August 11, 2014. A recording of the earnings conference call may be obtained by calling 1-877-344-7529, referring to conference number 10048017.

The conference call will be simultaneously broadcast live over the Internet through a webcast on the investor relations portion of the Bryn Mawr Bank Corporation’s website. To access the call, please visit the website at http://services.choruscall.com/links/bmtc140725.html. An online archive of the webcast will be available within one hour of the conclusion of the call. The Corporation has also recently expanded its Investor Relations website to include added resources and information for shareholders and interested investors. Interested parties are encouraged to utilize the expanded resources of the site for more information on Bryn Mawr Bank Corporation.

FORWARD LOOKING STATEMENTS AND SAFE HARBOR

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

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

For a complete discussion of the assumptions, risks and uncertainties related to our business, you are encouraged to review our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K, as well as any changes in risk factors that we may identify in our quarterly or other reports subsequently filed with the SEC.

# # # #

Bryn Mawr Bank Corporation

Consolidated Statements of Income – (unaudited)

(dollars in thousands, except per share data)


	For The Three Months Ended
	June 30, 2014			March 31, 2014			December 31, 2013			Sepember 30, 2013			June 30, 2013
Interest income	$	20,941		$	20,161		$	20,525		$	19,820		$	19,217
Interest expense		1,499			1,438			1,400			1,287			1,294

Net interest income		19,442			18,723			19,125			18,533			17,923
Provision for loan and lease losses		(100	)		750			812			959			1,000

Net interest income after provision for loan and lease losses		19,542			17,973			18,313			17,574			16,923
Fees for wealth management services		9,499			8,913			9,106			8,635			9,094
Loan servicing and other fees		428			446			465			481			448
Service charges on deposits		656			601			638			627			596
Net gain on sale of residential mortgage loans		537			324			529			578			1,492
Net gain (loss) on sale of investment securities available for sale		85			(4	)		(10	)		—			—
Net gain (loss) on sale of other real estate owned		220			—			(106	)		(1	)		(141	)
Bank owned life insurance income		74			81			88			72			85
Other operating income		1,258			778			1,525			995			1,369

Non-interest income		12,757			11,139			12,235			11,387			12,943

Salaries and wages		9,694			8,440			9,438			9,012			9,086
Employee benefits		1,809			1,979			2,399			1,896			2,212
Net gain on curtailment of nonqualified pension plan		—			—			—			—			(120	)
Occupancy and bank premises		1,683			1,933			1,738			1,646			1,728
Furniture fixtures and equipment		1,089			983			1,017			920			1,221
Advertising		455			339			431			303			380
Net (recovery) impairment of mortgage servicing rights		(3	)		(8	)		(10	)		33			(91	)
Amortization of mortgage servicing rights		128			115			123			187			218
Amortization of intangible assets		636			637			655			657			660
FDIC insurance		242			271			259			271			275
Due diligence and merger-related expenses		377			264			155			328			688
Professional fees		914			593			581			636			664
Pennsylvania bank shares tax		412			368			274			139			366
Other operating expenses		3,190			2,985			3,598			3,295			3,237

Non-interest expense		20,626			18,899			20,658			19,323			20,524

Income before income taxes		11,673			10,213			9,890			9,638			9,342
Income tax expense		4,069			3,524			3,419			3,237			3,090

Net income	$	7,604		$	6,689		$	6,471		$	6,401		$	6,252

Per share data:
Weighted average shares outstanding		13,531,170			13,485,213			13,419,269			13,336,799			13,280,624
Dilutive common shares		304,998			304,828			308,674			275,343			227,150

Adjusted weighted average dilutive shares		13,836,168			13,790,041			13,727,943			13,612,142			13,507,774

Basic earnings per common share	$	0.56		$	0.50		$	0.48		$	0.48		$	0.47

Diluted earnings per common share	$	0.55		$	0.49		$	0.47		$	0.47		$	0.46

Dividend declared per share	$	0.18		$	0.18		$	0.18		$	0.17		$	0.17

Effective tax rate		34.9	%		34.5	%		34.6	%		33.6	%		33.1	%

Bryn Mawr Bank Corporation

Consolidated Statements of Income – (unaudited)

(dollars in thousands, except per share data)


	For The Six Months Ended June 30,
	2014			2013
Interest income	$	41,102		$	38,072
Interest expense		2,937			2,740

Net interest income		38,165			35,332
Provision for loan and lease losses		650			1,804

Net interest income after provision for loan and lease losses		37,515			33,528

Fees for wealth management services		18,412			17,443
Loan servicing and other fees		874			899
Service charges on deposits		1,257			1,180
Net gain on sale of residential mortgage loans		861			3,010
Net gain on sale of investment securities available for sale		81			2
Net gain (loss) on sale of other real estate owned		220			(193	)
Bank owned life insurance income		155			198
Other operating income		2,036			2,194

Non-interest income		23,896			24,733

Salaries and wages		18,134			17,896
Employee benefits		3,788			4,537
Net gain on curtailment of nonqualified pension plan		—			(690	)
Occupancy and bank premises		3,616			3,478
Furniture fixtures and equipment		2,072			2,040
Advertising		794			792
Net recovery of mortgage servicing rights		(11	)		(20	)
Amortization of mortgage servicing rights		243			430
Amortization of intangible assets		1,273			1,321
FDIC insurance		513			533
Due diligence and merger-related expenses		641			1,402
Professional fees		1,507			1,239
Early extinguishment of debt — costs and premiums		—			347
Pennsylvania bank shares tax		780			730
Other operating expenses		6,175			6,724

Non-interest expense		39,525			40,759

Income before income taxes		21,886			17,502
Income tax expense		7,593			5,930

Net income	$	14,293		$	11,572

Per share data:
Weighted average shares outstanding		13,508,319			13,243,289
Dilutive common shares		304,913			228,782

Adjusted weighted average shares		13,813,232			13,472,071

Basic earnings per common share	$	1.06		$	0.87

Diluted earnings per common share	$	1.03		$	0.86

Dividend declared per share	$	0.36		$	0.34

Effective tax rate		34.7	%		33.9	%

Bryn Mawr Bank Corporation

Consolidated Balance Sheets – (unaudited)

(dollars in thousands)


	June 30, 2014			March 31, 2014			December 31, 2013			September 30, 2013			June 30, 2013
Assets

Interest-bearing deposits with banks	$	85,946		$	59,248		$	67,618		$	71,203		$	95,903
Investment securities – available for sale		266,402			272,599			285,808			319,917			322,961
Investment securities – trading		3,597			3,517			3,437			2,357			2,180
Loans held for sale		1,631			1,340			1,350			1,284			2,207
Portfolio loans:
Consumer		18,907			18,104			16,926			17,572			18,404
Commercial & industrial		334,474			334,295			328,459			303,259			296,073
Commercial mortgages		666,924			640,574			625,341			622,771			587,261
Construction		55,051			44,060			46,369			39,055			28,718
Residential mortgages		310,491			301,532			300,243			291,645			280,687
Home equity lines & loans		185,593			186,277			189,571			187,634			183,006
Leases		44,102			40,988			40,276			38,079			36,770

Total portfolio loans and leases		1,615,542			1,565,830			1,547,185			1,500,015			1,430,919

Earning assets		1,973,118			1,902,534			1,905,398			1,894,776			1,854,170

Cash and due from banks		17,018			14,696			13,453			24,958			14,208
Allowance for loan and lease losses		(15,470	)		(15,770	)		(15,515	)		(15,027	)		(14,444	)
Premises and equipment		32,679			32,473			31,796			31,436			30,947
Accrued interest receivable		5,526			5,687			5,728			5,703			6,097
Mortgage servicing rights		4,760			4,734			4,750			4,744			4,790
Goodwill		32,843			32,843			32,843			32,843			32,843
Other intangible assets		18,092			18,728			19,365			20,020			20,677
Bank owned life insurance		20,375			20,301			20,220			20,132			20,060
FHLB stock		12,775			11,911			11,654			12,590			13,028
Deferred income taxes		5,984			7,517			8,690			11,955			11,788
Other investments		4,507			4,392			4,437			4,337			4,378
Other assets		19,018			19,770			18,846			10,506			10,980

Total assets	$	2,131,225		$	2,059,816		$	2,061,665		$	2,058,973		$	2,009,522


Liabilities and shareholders’ equity

Interest-bearing deposits:
Interest-bearing checking	$	263,247		$	269,409		$	266,787		$	244,826		$	262,316
Money market		559,070			556,076			544,310			548,011			551,750
Savings		145,312			141,979			135,240			137,431			136,307
Wholesale non-maturity deposits		41,840			42,704			42,937			57,195			30,315
Wholesale time deposits		50,152			34,104			34,639			23,127			12,139
Time deposits		123,572			130,983			140,794			145,119			161,146

Total interest-bearing deposits		1,183,193			1,175,255			1,164,707			1,155,709			1,153,973

Non-interest-bearing deposits		436,739			404,340			426,640			394,947			395,742

Total deposits		1,619,932			1,579,595			1,591,347			1,550,656			1,549,715

Long-term FHLB advances and other borrowings		233,132			214,640			205,644			191,645			152,642
Short-term borrowings		13,320			10,739			10,891			75,588			71,768
Other liabilities		21,470			19,365			23,885			23,323			22,929
Shareholders’ equity		243,371			235,477			229,898			217,761			212,468

Total liabilities and shareholders’ equity	$	2,131,225		$	2,059,816		$	2,061,665		$	2,058,973		$	2,009,522

Bryn Mawr Bank Corporation

Consolidated Quarterly Average Balance Sheets – (unaudited)

(dollars in thousands)


	For The Three Months Ended
	June 30, 2014			March 31, 2014			December 31, 2013			September 30, 2013			June 30, 2013
Assets

Interest-bearing deposits with banks	$	70,775		$	67,809		$	56,569		$	35,589		$	59,981
Investment securities – available for sale		271,830			281,572			310,183			324,418			325,729
Investment securities – trading		3,518			3,438			2,368			2,182			2,168
Loans held for sale		1,280			504			1,197			867			2,233
Portfolio loans and leases		1,599,104			1,549,161			1,522,408			1,463,492			1,425,836

Earning assets		1,946,507			1,902,484			1,892,725			1,826,548			1,815,947

Cash and due from banks		12,067			12,302			13,132			12,497			12,876
Allowance for loan and lease losses		(16,073	)		(15,761	)		(15,226	)		(14,653	)		(14,625	)
Premises and equipment		32,829			32,358			31,770			31,216			31,254
Goodwill		32,843			32,843			32,843			32,843			32,896
Other intangible assets		18,459			19,095			19,741			20,400			21,055
Bank owned life insurance		20,327			20,252			20,163			20,086			20,005
FHLB stock		12,663			11,915			12,242			12,809			10,430
Deferred income taxes		7,119			7,908			11,733			11,946			10,997
Other assets		29,750			29,940			22,288			21,904			25,296

Total assets	$	2,096,491		$	2,053,336		$	2,041,411		$	1,975,596		$	1,966,131

Liabilities and shareholders’ equity

Interest-bearing deposits:
Interest-bearing checking	$	264,087		$	263,612		$	248,722		$	249,982		$	263,842
Money market		556,241			545,108			548,351			559,911			571,327
Savings		143,418			137,812			137,327			135,070			134,485
Wholesale non-maturity deposits		42,970			41,828			48,465			47,804			31,124
Wholesale time deposits		48,791			35,133			22,735			10,911			11,610
Time deposits		127,167			134,574			142,258			152,788			164,247

Total interest-bearing deposits		1,182,674			1,158,067			1,147,858			1,156,466			1,176,635

Non-interest bearing deposits		416,104			415,514			420,072			402,292			391,387

Total deposits		1,598,778			1,573,581			1,567,930			1,558,758			1,568,022

Long-term FHLB advances and other borrowings		222,851			212,405			204,780			163,818			150,468
Short-term borrowings		17,220			13,090			25,364			14,995			13,358
Other liabilities		19,368			22,546			23,401			24,904			23,617
Shareholders’ equity		238,274			231,714			219,936			213,121			210,666

Total liabilities and shareholders’ equity	$	2,096,491		$	2,053,336		$	2,041,411		$	1,975,596		$	1,966,131

Bryn Mawr Bank Corporation

Consolidated Year-to-Date Average Balance Sheets – (unaudited)

(dollars in thousands)


	For The Six Months Ended June 30,
	2014			2013
Assets

Interest bearing deposits with banks	$	69,300		$	88,518
Investment securities – available for sale		276,674			324,495
Investment securities – trading		3,478			1,933
Loans held for sale		894			2,438
Portfolio loans and leases		1,574,271			1,413,506

Earning assets		1,924,617			1,830,890

Cash and due from banks		12,184			13,080
Allowance for loan and lease losses		(15,918	)		(14,659	)
Premises and equipment		32,595			31,334
Goodwill		32,843			32,897
Intangible assets		18,775			21,388
Bank owned life insurance		20,289			19,955
FHLB stock		12,343			10,448
Deferred income taxes		7,511			11,586
Other assets		29,794			23,345

Total assets	$	2,075,033		$	1,980,264

Liabilities and shareholders’ equity

Interest-bearing deposits:
Interest-bearing checking	$	263,851		$	265,363
Money market		550,705			573,860
Savings		140,630			133,321
Wholesale non-maturity deposits		42,402			34,882
Wholesale time deposits		42,000			11,553
Time deposits		130,850			177,518

Total interest-bearing deposits		1,170,438			1,196,497

Non-interest-bearing deposits		415,810			389,146

Total deposits		1,586,248			1,585,643

Long-term FHLB advances and other borrowings		217,657			151,120
Short-term borrowings		15,167			11,125
Other liabilities		20,948			24,878
Shareholders’ equity		235,013			207,498

Total liabilities and shareholders’ equity	$	2,075,033		$	1,980,264

Bryn Mawr Bank Corporation

Quarterly Average Balances and Tax-Equivalent Interest Income and Expense and Tax-Equivalent Yields – (unaudited)


	For The Three Months Ended
	June 30, 2014							March 31, 2014							December 31, 2013							September 30, 2013							June 30, 2013
(dollars in thousands)		Average Balance			Interest Income/ Expense	Average Rates Earned/ Paid			Average Balance			Interest Income/ Expense	Average Rates Earned/ Paid			Average Balance			Interest Income/ Expense	Average Rates Earned/ Paid			Average Balance			Interest Income/ Expense	Average Rates Earned/ Paid			Average Balance			Interest Income/ Expense	Average Rates Earned/ Paid

Assets:
Interest-bearing deposits with other banks	$	70,775		$	44	0.25	%	$	67,809		$	37	0.22	%	$	56,569		$	27	0.19	%	$	35,589		$	21	0.23	%	$	59,981		$	41	0.27	%
Investment securities –available for sale:
Taxable		235,853			903	1.54	%		245,006			972	1.61	%		271,152			1,127	1.65	%		284,558			988	1.38	%		287,287			846	1.18	%
Tax-exempt		35,977			151	1.68	%		36,566			153	1.70	%		39,031			159	1.62	%		39,860			159	1.58	%		38,442			146	1.52	%

Total investment securities – available for sale		271,830			1,054	1.56	%		281,572			1,125	1.62	%		310,183			1,286	1.64	%		324,418			1,147	1.40	%		325,729			992	1.22	%
Investment securities – trading		3,518			17	1.94	%		3,438			7	0.83	%		2,368			51	8.54	%		2,182			7	1.27	%		2,168			13	2.41	%

Loans and leases *		1,600,384			19,936	5.00	%		1,549,665			19,107	5.00	%		1,523,605			19,277	5.02	%		1,464,359			18,755	5.08	%		1,428,069			18,277	5.13	%

Total interest –earning assets		1,946,507			21,051	4.34	%		1,902,484			20,276	4.32	%		1,892,725			20,641	4.33	%		1,826,548			19,930	4.33	%		1,815,947			19,323	4.27	%
Cash and due from banks		12,067							12,302							13,132							12,497							12,876
Less allowance for loan and lease losses		(16,073	)						(15,761	)						(15,226	)						(14,653	)						(14,625	)
Other assets		153,990							154,311							150,780							151,204							151,933

Total assets	$	2,096,491						$	2,053,336						$	2,041,411						$	1,975,596						$	1,966,131

Liabilities:

Interest-bearing deposits:
Savings, NOW and market rate deposits	$	963,746		$	420	0.17	%	$	946,532		$	405	0.17	%	$	934,400		$	414	0.18	%	$	944,963		$	419	0.18	%	$	969,654		$	445	0.18	%
Wholesale deposits		91,761			147	0.64	%		76,961			114	0.60	%		71,200			85	0.47	%		58,715			55	0.37	%		42,734			44	0.41	%
Time deposits		127,167			146	0.46	%		134,574			170	0.51	%		142,258			151	0.42	%		152,788			165	0.43	%		164,247			205	0.50	%

Total interest-bearing deposits		1,182,674			713	0.24	%		1,158,067			689	0.24	%		1,147,858			650	0.22	%		1,156,466			639	0.22	%		1,176,635			694	0.24	%
Borrowings:
Short-term borrowings		17,220			5	0.12	%		13,090			3	0.09	%		25,364			12	0.19	%		14,995			5	0.13	%		13,358			4	0.12	%
Long-term FHLB advances and other borrowings		222,851			781	1.41	%		212,405			746	1.42	%		204,780			738	1.43	%		163,818			643	1.56	%		150,468			596	1.59	%

Total borrowings		240,071			786	1.31	%		225,495			749	1.35	%		230,144			750	1.29	%		178,813			648	1.44	%		163,826			600	1.47	%

Total interest-bearing liabilities		1,422,745			1,499	0.42	%		1,383,562			1,438	0.42	%		1,378,002			1,400	0.40	%		1,335,279			1,287	0.38	%		1,340,461			1,294	0.39	%

Noninterest-bearing deposits		416,104							415,514							420,072							402,292							391,387
Other liabilities		19,368							22,546							23,401							24,904							23,617

Total noninterest-bearing liabilities		435,472							438,060							443,473							427,196							415,004

Total liabilities		1,858,217							1,821,622							1,821,475							1,762,475							1,755,465

Shareholders’ equity		238,274							231,714							219,936							213,121							210,666

Total liabilities and shareholders’ equity	$	2,096,491						$	2,053,336						$	2,041,411						$	1,975,596						$	1,966,131

Interest income to earning assets						4.34	%						4.32	%						4.33	%						4.33	%						4.27	%

Net interest spread						3.92	%						3.9	%						3.93	%						3.95	%						3.88	%
Effect of noninterest-bearing sources						0.11	%						0.12	%						0.1	%						0.1	%						0.1	%

Tax-equivalent net interest income/ margin on earning assets				$	19,552	4.03	%				$	18,838	4.02	%				$	19,241	4.03	%				$	18,643	4.05	%				$	18,029	3.98	%

Tax-equivalent adjustment				$	110	0.02	%				$	115	0.02	%				$	116	0.02	%				$	110	0.02	%				$	106	0.02	%

*	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

Average Balances and Tax-Equivalent Interest Income and Expense and Tax-Equivalent Yields


	For The Six Months Ended June 30,
	2014							2013
(dollars in thousands)		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	$	69,300			81	0.24	%	$	88,518			110	0.25	%
Investment securities available for sale:
Taxable		240,404			1,875	1.57	%		288,187			1,734	1.21	%
Tax-exempt		36,270			304	1.69	%		36,308			269	1.49	%

Investment securities – available for sale		276,674			2,179	1.59	%		324,495			2,003	1.24	%

Investment securities – trading		3,478			24	1.39	%		1,933			15	1.56	%

Loans and leases *		1,575,165			39,043	5.00	%		1,415,944			36,147	5.15	%

Total interest earning assets		1,924,617			41,327	4.33	%		1,830,890			38,275	4.22	%

Cash and due from banks		12,184							13,080
Less allowance for loan and lease losses		(15,918	)						(14,659	)
Other assets		154,150							150,953

Total assets	$	2,075,033						$	1,980,264

Liabilities:

Savings, NOW and market rate deposits	$	955,186		$	824	0.17	%	$	972,544		$	923	0.19	%
Wholesale deposits		84,402			262	0.63	%		46,435			98	0.43	%
Time deposits		130,850			316	0.49	%		177,518			447	0.51	%

Total interest-bearing deposits	$	1,170,438			1,402	0.24	%	$	1,196,497			1,468	0.25	%

Short-term borrowings		15,167			8	0.11	%		12,672			8	0.13	%
Long-term FHLB advances and other borrowings		217,657			1,527	1.41	%		149,573			1,263	1.70	%

Total Borrowings		232,824			1,535	1.33	%		162,245			1,271	1.58	%

Total interest-bearing liabilities		1,403,262			2,937	0.42	%		1,358,742			2,739	0.41	%

Noninterest-bearing deposits		415,810							389,146
Other liabilities		20,948							24,878

Total noninterest-bearing liabilities		436,758							414,024

Total liabilities		1,840,020							1,772,766

Shareholders’ equity		235,013							207,498

Total liabilities and shareholders’ equity	$	2,075,033						$	1,980,264

Interest income to earning assets						4.33	%						4.22	%

Net interest spread						3.91	%						3.81	%
Effect of noninterest-bearing sources						0.11	%						0.10	%

Tax-equivalent net interest income/ margin on earning assets				$	38,390	4.02	%				$	35,536	3.91	%

Tax-equivalent adjustment				$	225	0.02	%				$	204	0.02	%

*	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

Consolidated Selected Financial Data – (unaudited)

(dollars in thousands, except per share data)


	For The Three Months Ended or As Of
	June 30, 2014			March 31, 2014			December 31, 2013			September 30, 2013			June 30, 2013
Asset Quality Data

Nonaccrual loans and leases	$	8,388		$	10,236		$	10,530		$	10,613		$	10,489
90 days or more past due loans, still accruing		—			—			—			—			—

Nonperforming loans and leases		8,388			10,236			10,530			10,613			10,489
Other real estate owned		853			1,040			855			1,253			1,205

Total nonperforming assets	$	9,241		$	11,276		$	11,385		$	11,866		$	11,694


Troubled debt restructurings included in nonperforming assets	$	1,597		$	2,698		$	1,699		$	2,628		$	2,869
Troubled debt restructurings in compliance with modified terms		7,487			6,667			7,277			8,947			8,157

Total troubled debt restructurings	$	9,084		$	9,365		$	8,976		$	11,575		$	11,026

Nonperforming loans and leases / portfolio loans & leases		0.52	%		0.65	%		0.68	%		0.71	%		0.73	%

Nonperforming assets / total assets		0.43	%		0.55	%		0.55	%		0.58	%		0.58	%
Net loan and lease charge-offs / average loans and leases (annualized)		0.05	%		0.13	%		0.09	%		0.10	%		0.28	%

Delinquency rate* – Performing and nonperforming loans and leases 30 days or more past due		0.64	%		0.59	%		0.65	%		0.68	%		0.73	%

Performing loans and leases – 30-89 days past due	$	3,743		$	1,815		$	1,718		$	1,227		$	2,328

Delinquency rate* – Performing loans and leases) – 30-89 days past due		0.23	%		0.12	%		0.11	%		0.08	%		0.16	%

*	as a percentage of total loans and leases


Changes in the allowance for loan and lease losses:

Balance, beginning of period	$	15,770		$	15,515		$	15,027		$	14,444		$	14,447
Charge-offs		(304	)		(538	)		(484	)		(501	)		(1,164	)
Recoveries		104			43			160			125			161

Net charge-offs		(200	)		(495	)		(324	)		(376	)		(1,003	)
Provision for loan and lease losses		(100	)		750			812			959			1,000

Balance, end of period	$	15,470		$	15,770		$	15,515		$	15,027		$	14,444

Allowance for loan and lease losses / loans and leases		0.96	%		1.01	%		1.00	%		1.00	%		1.01	%
Allowance for loan and lease losses / nonperforming loans and leases		184.4	%		154.1	%		147.3	%		141.6	%		137.7	%

Bryn Mawr Bank Corporation

Consolidated Selected Financial Data – (unaudited)

(dollars in thousands, except per share data)


	For The Three Months Ended or As Of
	June 30, 2014			March 31, 2014			December 31, 2013			September 30, 2013			June 30, 2013
Selected ratios (annualized):

Return on average assets		1.45	%		1.32	%		1.26	%		1.29	%		1.28	%
Return on average shareholders’ equity		12.80	%		11.71	%		11.67	%		11.92	%		11.90	%
Return on average tangible equity ⁽²⁾		16.31	%		15.10	%		15.35	%		15.89	%		16.00	%
Tax-equivalent yield on loans and leases		5.00	%		5.00	%		5.02	%		5.08	%		5.13	%
Tax-equivalent yield on interest-earning assets		4.34	%		4.32	%		4.33	%		4.33	%		4.27	%
Cost of interest-bearing funds		0.42	%		0.42	%		0.40	%		0.38	%		0.39	%
Tax-equivalent net interest margin		4.03	%		4.02	%		4.03	%		4.05	%		3.98	%
Book value per share	$	17.74		$	17.24		$	16.84		$	16.07		$	15.71
Tangible book value per share	$	14.03		$	13.47		$	13.02		$	12.17		$	11.75
Shares outstanding at end of period		13,720,738			13,656,979			13,650,354			13,551,438			13,528,078

Selected data:

Mortgage loans originated	$	39,575		$	17,892		$	37,190		$	40,426		$	55,066

Residential mortgage loans sold – servicing retained	$	15,154		$	9,086		$	12,523		$	17,768		$	46,209
Residential mortgage loans sold – servicing released		—			152			531			—			347

Total residential mortgage loans sold	$	15,154		$	9,238		$	13,054		$	17,768		$	46,556

Yield on residential mortgage loans sold		3.54	%		3.51	%		4.05	%		3.25	%		3.20	%

Loans serviced for others (includes residential mortgage, commercial mortgage and commercial & industrial)	$	622,808		$	618,348		$	628,879		$	627,058		$	623,498

Total wealth assets under management, administration, supervision and brokerage ⁽¹⁾	$	7,569,842		$	7,361,977		$	7,268,273		$	7,082,926		$	6,854,838

⁽¹⁾

Brokerage assets represent assets held at a registered broker dealer under a networking agreement.

⁽²⁾

Average tangible equity equals average shareholders’ equity minus average goodwill and average other intangible assets.

Bryn Mawr Bank Corporation

Consolidated Selected Financial Data – (unaudited)

(dollars in thousands, except per share data)

Investment Portfolio – Available for Sale


	As of June 30, 2014							As of December 31, 2013
SECURITY DESCRIPTION	Amortized Cost		Fair Value		Net Unrealized Gain / (Loss)			Amortized Cost		Fair Value		Net Unrealized Gain / (Loss)

U.S. Treasury securities	$	102	$	101	$	(1	)	$	102	$	99	$	(3	)
Obligations of the U.S. Government and agencies		63,623		63,337		(286	)		71,097		69,568		(1,529	)
State & political subdivisions		35,865		35,993		128			37,140		36,977		(163	)
Mortgage-backed securities		109,045		111,005		1,960			119,044		119,363		319
Collateralized mortgage obligations		39,674		39,834		160			44,463		44,243		(220	)
Other debt securities		1,900		1,900		—			1,900		1,887		(13	)
Bond mutual funds		11,956		12,004		48			11,456		11,457		1
Other investments		1,874		2,228		354			1,925		2,214		289

Total investment portfolio available for sale	$	264,039	$	266,402	$	2,363		$	287,127	$	285,808	$	(1,319	)

Capital Ratios


	Regulatory Minimum To Be Well Capitalized	June 30, 2014	March 31, 2014	December 31, 2013	September 30, 2013	June 30, 2013
Bryn Mawr Trust Company

Tier I capital to risk weighted assets (“RWA”)	6.00%	11.68%	11.65%	11.40%	11.36%	11.58%
Total (Tier II) capital to RWA	10.00%	12.62%	12.63%	12.38%	12.33%	12.55%
Tier I leverage ratio	5.00%	9.51%	9.43%	9.14%	9.22%	9.07%
Tangible equity ratio	N/A	9.18%	9.18%	8.78%	8.32%	8.29%

Bryn Mawr Bank Corporation

Tier I capital to RWA	6.00%	11.85%	11.71%	11.57%	11.33%	11.47%
Total (Tier II) capital to RWA	10.00%	12.79%	12.69%	12.55%	12.30%	12.44%
Tier I leverage ratio	5.00%	9.67%	9.50%	9.29%	9.22%	9.00%
Tangible equity ratio	N/A	9.32%	9.23%	8.92%	8.30%	8.21%

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BRYN MAWR BANK CORP Reports