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

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8-K - FORM 8-K - BRYN MAWR BANK CORP	d856055d8k.htm
EX-99.2 - EX-99.2 - BRYN MAWR BANK CORP	d856055dex992.htm

Exhibit 99.1

LOGO

Bryn Mawr Bank Corporation


FOR RELEASE: IMMEDIATELY		Frank Leto, President, CEO
FOR MORE INFORMATION CONTACT:		610-581-4800
		J. Duncan Smith, CFO
		610-526-2466

Bryn Mawr Bank Corporation Reports Record Earnings of

$27.8 Million for 2014, Record Wealth Assets of $7.7 Billion, Declares Dividend of $0.19

BRYN MAWR, Pa., January 22, 2015—Bryn Mawr Bank Corporation (NASDAQ: BMTC), (the “Corporation”), parent of The Bryn Mawr Trust Company (the “Bank”), today reported net income of $7.0 million and diluted earnings per share of $0.51 for the three months ended December 31, 2014, as compared to net income of $6.5 million and diluted earnings per share of $0.47 for the same period in 2013. Net income for the three months ended December 31, 2014 included pre-tax due diligence and merger-related expenses of $957 thousand as compared to $155 thousand for the same period in 2013.

Net income for the twelve months ended December 31, 2014 was $27.8 million, or $2.01 per diluted share, as compared to $24.4 million, or $1.80 per diluted share, for the same period in 2013. Net income for the twelve months ended December 31, 2014 included pre-tax due diligence and merger-related expenses of $2.4 million as compared to $1.9 million for the same period in 2013.

Significant factors contributing to the results for the three months ended December 31, 2014, as compared to the same period in 2013, included a decrease in provision for loan losses and increases in the net gain on sale of available for sale investment securities, net interest income and wealth management revenue between the periods. These improvements were offset by increases in due diligence and merger-related expenses, salaries and wages and furniture, fixtures and equipment expense related to system upgrades.

“We are very pleased to close out the year with another strong quarter,” commented Frank Leto, President and Chief Executive Officer. “As we look forward to 2015, with the many challenges ahead, we are confident that the combination of a strong wealth management division, experienced lending staff, excellent credit quality and our recently expanded branch network will enable us to continue to produce strong results,” Mr. Leto continued.

The previously announced merger with Continental Bank Holdings, Inc. (“CBH”) was completed on January 1, 2015. Mr. Leto noted, “As a result of the thorough planning and preparation conducted in the months leading up to the CBH merger, the transaction closed on schedule and we are now poised to take advantage of the opportunities that our expanded presence in Montgomery County and our new presence in the City of Philadelphia provide.”

On January 22, 2015, the Board of Directors of the Corporation declared a quarterly dividend of $0.19 per share, payable March 1, 2015 to shareholders of record as of February 3, 2015.

SIGNIFICANT ITEMS OF NOTE

Results of Operations – 4th Quarter 2014 Compared to 4th Quarter 2013

•

Net income of $7.0 million for the three months ended December 31, 2014 increased $573 thousand, or 8.9%, from $6.5 million for the same period in 2013.

•

Net interest income for the three months ended December 31, 2014 was $19.5 million, an increase of $362 thousand, or 1.9%, from $19.1 million for the same period in 2013. The increase in net interest income between the periods was largely the result of a $131.8 million, or 8.7%, increase in average portfolio loans for the three months ended December 31, 2014 as compared to the same period in 2013. Partially offsetting this loan growth was a decrease in average available for sale investment securities of $57.8 million for the three months ended December 31, 2014 as compared to the same period in 2013. In addition to the decrease in the investment portfolio, average long-term borrowings increased by $33.1 million, or 16.1%, and average interest-bearing deposits increased $58.5 million, or 5.1%, for the three months ended December 31, 2014 as compared to the same period in 2013.

•

The tax-equivalent net interest margin of 3.84% for the three months ended December 31, 2014 was a 19 basis point decrease from 4.03% for the same period in 2013. The decrease was primarily the result of a 23 basis point decline in yield on portfolio loans and a 3 basis point increase in rate paid on interest-bearing liabilities. The decline in yield on portfolio loans was partially related to the impact of fair value accounting for acquired loans which increased the tax-equivalent yield on loans during the three months ended December 31, 2014 by 10 basis points, as compared to an 18 basis point increase for the same period in 2013. Lessening the impact of these unfavorable yield and rate changes was a $134.0 million increase in average interest-earning assets offset by an $85.6 million increase in average interest-bearing liabilities for the three months ended December 31, 2014 as compared to the same period in 2013.

•

Non-interest income for the three months ended December 31, 2014 increased $648 thousand as compared to the same period in 2013. Largely responsible for this increase was the $390 thousand gain on sale of available for sale investment securities for the three months ended December 31, 2014, as compared to $10 thousand loss for the same period in 2013. The increase in gain on sale in available for sale investment securities resulted from the sale of mortgage backed securities in order to shorten the duration of the Corporation’s investment portfolio in anticipation of the addition of a longer-duration portfolio from the CBH merger. In addition, revenue from the Wealth Management Division remains strong, with a $157 thousand increase for the fourth quarter of 2014 as compared to the same period in 2013. Wealth Management Division assets under management, administration, supervision and brokerage as of December 31, 2014 were $7.7 billion, an increase of $432 million, or 5.9%, from December 31, 2013. This increase was driven by organic growth as a result of the division’s strategic initiatives and other new business, along with some market appreciation.

•

Non-interest expense for the three months ended December 31, 2014 increased $1.3 million, to $21.9 million, as compared to $20.7 million for the same period in 2013. Largely contributing to the increase was an $802 thousand increase in due diligence and merger-related expenses related to both the CBH merger and the October 1, 2014 acquisition of Powers Craft Parker and Beard (“PCPB”). In addition to the increase in merger costs, furniture, fixtures and equipment costs increased by $341 thousand for the three months ended December 31, 2014 as compared to the same period in 2013, as several infrastructure improvement projects were completed and began amortizing. Also, salaries and wages increased by $431 thousand, largely related to the addition of the PCPB staff.

•

Nonperforming loans and leases of $10.1 million as of December 31, 2014 were 0.61% of total portfolio loans and leases, as compared to $10.5 million, or 0.68% of total portfolio loans and leases as of December 31, 2013. For the three months ended December 31, 2014, the Corporation recorded net loan and lease charge-offs of $697 thousand, as compared to $324 thousand for the same period in 2013. The provision for loan and lease losses (the “Provision”) for the three months ended December 31, 2014 was a release of $316 thousand, as compared to a Provision of $812 thousand for the same period in 2013.

Results of Operations – 4th Quarter 2014 Compared to 3rd Quarter 2014

•

Net income of $7.0 million for the three months ended December 31, 2014 increased $538 thousand, or 8.3%, from $6.5 million for the three months ended September 30, 2014.

•

Net interest income for the three months ended December 31, 2014 was $19.5 million, an increase of $311 thousand, or 1.6%, from $19.2 million for the three months ended September 30, 2014. The tax-equivalent yield earned on interest-earning assets declined by 4 basis points between periods, however a $49.1 million increase in average interest-earning assets partially offset by a $28.9 million increase in average interest-bearing liabilities between periods resulted in the increase in net interest income.

•

The tax-equivalent net interest margin of 3.84% for the three months ended December 31, 2014 was a 3 basis point decrease from 3.87% for the three months ended September 30, 2014. The decrease was primarily related to the 2 basis point decrease in yield earned on portfolio loans.

•

Non-interest income for the three months ended December 31, 2014 increased $1.3 million as compared to the three months ended September 30, 2014. The increase was comprised of increases of $680 thousand in other operating income, $390 thousand in gain on sale of available for sale investment securities and $164 thousand in wealth management revenue. The increase in other operating income was related to insurance commissions generated by PCPB, the insurance subsidiary acquired by the Corporation on October 1, 2014. The increase in gain on sale of available for sale investment securities resulted from the sale of mortgage backed securities in order to shorten the duration of the Corporation’s investment portfolio in anticipation of the addition of a longer-duration portfolio from the CBH merger. The increase in revenue from wealth management services was driven by organic growth as a result of the division’s strategic initiatives and other new business, along with some market appreciation.

•

Non-interest expense for the three months ended December 31, 2014 increased $2.0 million, to $21.9 million, as compared to $19.9 million for the three months ended September 30, 2014. The increase between the periods was partially related to an increase of $1.0 million in salaries and employee benefits. The increase in salaries and employee benefits was related to the addition of the PCPB staff, which joined the Corporation on October 1, 2014, as well as year-end accruals of incentives and bonuses. Furniture, fixtures and equipment expense increased by $280 thousand as several infrastructure improvement projects were completed and began amortizing during the fourth quarter of 2014. Due diligence and merger-related expenses increased by $182 thousand related to the CBH and PCPB transactions and charitable contributions increased by $192 thousand for the three months ended December 31, 2014 as compared to the three months ended September 30, 2014.

•

Nonperforming loans and leases of $10.1 million as of December 31, 2014 were 0.61% of total portfolio loans and leases, as compared to $8.3 million, or 0.51% of total portfolio loans and leases as of September 30, 2014. For the three months ended December 31, 2014, the Corporation recorded net loan and lease charge-offs of $697 thousand, as compared to $421 thousand for the three months ended September 30, 2014. The Provision for the three months ended December 31, 2014 was a release of $316 thousand, as compared to a Provision of $550 thousand for the three months ended September 30, 2014, a decrease of $866 thousand.

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

•

Total portfolio loans and leases of $1.65 billion as of December 31, 2014 increased by $105.1 million, or 6.8%, from December 31, 2013, with residential mortgages, commercial mortgages, and construction loans accounting for a majority of the increase.

•

The allowance for loan and lease losses (the “Allowance”) as of December 31, 2014 was $14.6 million, or 0.88% of portfolio loans as compared to $15.5 million, or 1.00% of portfolio loans and leases, as of December 31, 2013. The decrease in Allowance as a percentage of loans was the result of partial charge-offs of impaired loans which had previously been specifically provided for, as well as improving credit quality metrics and positive economic indicators.

•

Total assets as of December 31, 2014 were $2.25 billion, an increase of $184.8 million from December 31, 2013. Increases in loan balances and interest-bearing deposits with other banks, partially offset by decreases in available for sale investment securities, accounted for the majority of this increase, with funding for loan originations provided by increased deposits and borrowings.

•

Deposits of $1.69 billion, as of December 31, 2014, increased $96.7 million from December 31, 2013. The increase was comprised of a $38.8 million increase in wholesale time deposits, a $23.8 million increase in wholesale non-maturity deposits, a $20.3 million increase in non-interest-bearing deposits and a $36.2 million increase in other core deposits. These increases were partially offset by decreases of $22.4 million in retail time deposits between December 31, 2013 and December 31, 2014.

•

The capital ratios for the Bank and the Corporation, as shown in the attached tables, indicate levels well above the regulatory minimum to be considered “well capitalized.” The tangible equity ratios for both the Bank and the Corporation have decreased from their December 31, 2013 levels of 8.78% and 8.92%, to 8.19% and 8.61%, respectively, at December 31, 2014. These decreases were primarily related to an increase in other comprehensive losses in the Corporation’s pension plans which were partially offset by increases in retained earnings and unrealized gains on available for sale investment securities.

EARNINGS CONFERENCE CALL

The Corporation will hold an earnings conference call at 8:30 a.m. EDT on Friday, January 23, 2015. Interested parties may participate by dialing (toll-free) 1-877-504-8812 (international (toll) 1-412-902-6656). A taped replay of the conference call will be available one hour after the conclusion of the call and will remain available through February 6, 2015. The taped replay may be accessed by dialing (toll-free) 1-877-344-7529 (international (toll) 1-412-317-0088) and the conference number is 10057169.

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/bmtc150123.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, that the integration of CBH’s business with the Corporation may take longer than anticipated or be more costly to complete and that the anticipated benefits, including any anticipated cost savings or strategic gains may be significantly harder to achieve or take longer than anticipated or may not be achieved, our need for capital, our ability to control operating costs and expenses, and to manage loan and lease delinquency rates; the credit risks of lending activities and overall quality of the composition of our loan, lease and securities portfolio; the impact of economic conditions, consumer and business spending habits, and real estate market conditions on our business and in our market area; changes in the levels of general interest rates, deposit interest rates, or net interest margin and funding sources; changes in banking regulations and policies and the possibility that any banking agency approvals we might require for certain activities will not be obtained in a timely manner or at all or will be conditioned in a manner that would impair our ability to implement our business plans; changes in accounting policies and practices; the inability of key third-party providers to perform their obligations to us; our ability to attract and retain key personnel; competition in our marketplace; war or terrorist activities; material differences in the actual financial results, cost savings and revenue enhancements associated with our acquisitions; and other factors as described in our securities filings. All forward-looking statements and information set forth herein are based on management’s current beliefs and assumptions as of the date hereof and speak only as of the date they are made. The Corporation does not undertake to update forward-looking statements.

For a complete discussion of the assumptions, risks and uncertainties related to our business, you are encouraged to review our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K, as well as any changes in risk factors that we may identify in our quarterly or other reports 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
	December 31,			September 30,			June 30,			March 31,			December 31,
	2014			2014			2014			2014			2013
Interest income	$	21,055		$	20,749		$	20,941		$	20,161		$	20,525
Interest expense		1,568			1,573			1,499			1,438			1,400

Net interest income		19,487			19,176			19,442			18,723			19,125
Provision for loan and lease losses		(316	)		550			(100	)		750			812

Net interest income after provision for loan and lease losses		19,803			18,626			19,542			17,973			18,313
Fees for wealth management services		9,263			9,099			9,499			8,913			9,106
Loan servicing and other fees		450			431			428			446			465
Service charges on deposits		658			663			656			601			638
Net gain on sale of residential mortgage loans		471			440			537			324			529
Net gain (loss) on sale of investment securities available for sale		390			—			85			(4	)		(10	)
Net gain (loss) on sale of other real estate owned		4			(49	)		220			—			(106	)
Bank owned life insurance income		84			76			74			81			88
Other operating income		1,563			883			1,258			778			1,525

Non-interest income		12,883			11,543			12,757			11,139			12,235
Salaries and wages		9,869			9,110			9,694			8,440			9,438
Employee benefits		1,900			1,652			1,809			1,979			2,399
Occupancy and bank premises		1,808			1,881			1,683			1,933			1,738
Furniture fixtures and equipment		1,358			1,078			1,089			983			1,017
Advertising		400			310			455			339			431
Net impairment (recovery) of mortgage servicing rights		70			(3	)		(3	)		(8	)		(10	)
Amortization of mortgage servicing rights		105			128			128			115			123
Amortization of intangible assets		753			633			636			637			655
FDIC insurance		268			265			242			271			259
Due diligence and merger-related expenses		957			775			377			264			155
Professional fees		809			701			914			593			581
Pennsylvania bank shares tax		64			412			412			368			274
Other operating expenses		3,571			3,019			3,190			2,985			3,598

Non-interest expense		21,932			19,961			20,626			18,899			20,658
Income before income taxes		10,754			10,208			11,673			10,213			9,890
Income tax expense		3,710			3,702			4,069			3,524			3,419

Net income	$	7,044		$	6,506		$	7,604		$	6,689		$	6,471

Per share data:
Weighted average shares outstanding		13,646,098			13,600,355			13,531,170			13,485,213			13,419,269
Dilutive common shares		296,682			272,516			304,998			304,828			308,674

Adjusted weighted average dilutive shares		13,942,780			13,872,871			13,836,168			13,790,041			13,727,943

Basic earnings per common share	$	0.52		$	0.48		$	0.56		$	0.50		$	0.48
Diluted earnings per common share	$	0.51		$	0.47		$	0.55		$	0.49		$	0.47
Dividend declared per share	$	0.19		$	0.19		$	0.18		$	0.18		$	0.18
Effective tax rate		34.5	%		36.3	%		34.9	%		34.5	%		34.6	%

*Supplemental Non-GAAP Performance Measures (Includes Reconciliation of Non-GAAP to GAAP Performance Measures)**

Net income (a GAAP measure)	$	7,044		$	6,506		$	7,604		$	6,689		$	6,471
add: tax-effected** due diligence and merger-related expenses		622			504			245			172			101

Net income excluding tax-effected** due diligence and merger-related expenses (a non-GAAP measure)		7,666			7,010			7,849			6,861			6,572
Basic earnings per common share excluding tax-effected** due diligence and merger-related expenses (a non-GAAP measure)	$	0.56		$	0.52		$	0.58		$	0.51		$	0.49
Diluted earnings per common share excluding tax-effected** due diligence and merger-related expenses (a non-GAAP measure)	$	0.55		$	0.51		$	0.57		$	0.50		$	0.48

The Corporation believes the presentation of the above non-GAAP financial measure provides useful supplemental information that is essential to an investor’s proper understanding of the results of operations of the Corporation. Management uses this non-GAAP financial measure in its analysis of the Corporation’s performance. This non-GAAP disclosure should not be viewed as a substitute for the financial measure determined in accordance with GAAP, nor is it necessarily comparable to a non-GAAP performance measure that may be presented by other companies

**	assumed nominal tax rate of 35%

Bryn Mawr Bank Corporation

Consolidated Statements of Income—(unaudited)

(dollars in thousands, except per share data)


	For The Twelve Months Ended December 31,
	2014			2013
Interest income	$	82,906		$	78,417
Interest expense		6,078			5,427

Net interest income		76,828			72,990
Provision for loan and lease losses		884			3,575

Net interest income after provision for loan and lease losses		75,944			69,415
Fees for wealth management services		36,774			35,184
Loan servicing and other fees		1,755			1,845
Service charges on deposits		2,578			2,445
Net gain on sale of residential mortgage loans		1,772			4,117
Net gain (loss) on sale of investment securities available for sale		471			(8	)
Net gain (loss) on sale of other real estate owned		175			(300	)
Bank owned life insurance income		315			358
Other operating income		4,482			4,714

Non-interest income		48,322			48,355
Salaries and wages		37,113			36,346
Employee benefits		7,340			8,832
Net gain on curtailment of nonqualified pension plan		—			(690	)
Occupancy and bank premises		7,305			6,862
Furniture fixtures and equipment		4,508			3,977
Advertising		1,504			1,526
Net (recovery) impairment of mortgage servicing rights		56			3
Amortization of mortgage servicing rights		476			740
Amortization of intangible assets		2,659			2,633
FDIC insurance		1,046			1,063
Due diligence and merger-related expenses		2,373			1,885
Professional fees		3,017			2,456
Early extinguishment of debt—costs and premiums		—			347
Pennsylvania bank shares tax		1,256			942
Other operating expenses		12,765			13,818

Non-interest expense		81,418			80,740
Income before income taxes		42,848			37,030
Income tax expense		15,005			12,586

Net income	$	27,843		$	24,444

Per share data:
Weighted average shares outstanding		13,566,239			13,311,215
Dilutive common shares		294,756			260,395

Adjusted weighted average shares		13,860,995			13,571,610

Basic earnings per common share	$	2.05		$	1.84
Diluted earnings per common share	$	2.01		$	1.80
Dividend declared per share	$	0.74		$	0.69
Effective tax rate		35.0	%		34.0	%

Supplemental Non-GAAP Performance Measures* (Includes Reconciliation of Non-GAAP to GAAP Performance Measures)


Net income (a GAAP measure)	$	27,843	$	24,444
add: tax-effected** due diligence and merger-related expenses		1,542		1,225

Net income excluding tax-effected** due diligence and merger-related expenses (a non-GAAP measure)		29,385		25,669
Basic earnings per common share excluding tax-effected** due diligence and merger-related expenses (a non-GAAP measure)	$	2.17	$	1.93
Diluted earnings per common share excluding tax-effected** due diligence and merger-related expenses (a non-GAAP measure)	$	2.12	$	1.89

**	assumed nominal tax rate of 35%

Bryn Mawr Bank Corporation

Consolidated Balance Sheets—(unaudited)

(dollars in thousands)


	December 31,			September 30,			June 30,			March 31,			December 31,
	2014			2014			2014			2014			2013
Assets
Interest-bearing deposits with banks	$	202,552		$	56,253		$	85,946		$	59,248		$	67,618
Investment securities—available for sale		229,577			265,939			266,402			272,599			285,808
Investment securities—trading		3,896			3,803			3,597			3,517			3,437
Loans held for sale		3,882			1,375			1,631			1,340			1,350
Portfolio loans:
Consumer		18,480			16,810			18,907			18,104			16,926
Commercial & industrial		335,645			342,524			334,474			334,295			328,459
Commercial mortgages		689,528			683,558			666,924			640,574			625,341
Construction		66,267			59,923			55,051			44,060			46,369
Residential mortgages		313,442			314,127			310,491			301,532			300,243
Home equity lines & loans		182,082			183,314			185,593			186,277			189,571
Leases		46,813			44,982			44,102			40,988			40,276

Total portfolio loans and leases		1,652,257			1,645,238			1,615,542			1,565,830			1,547,185
Earning assets		2,092,164			1,972,608			1,973,118			1,902,534			1,905,398
Cash and due from banks		16,717			11,312			17,018			14,696			13,453
Allowance for loan and lease losses		(14,586	)		(15,599	)		(15,470	)		(15,770	)		(15,515	)
Premises and equipment		33,748			32,733			32,679			32,473			31,796
Accrued interest receivable		5,560			5,661			5,526			5,687			5,728
Mortgage servicing rights		4,765			4,796			4,760			4,734			4,750
Goodwill		35,502			32,843			32,843			32,843			32,843
Other intangible assets		22,998			17,459			18,092			18,728			19,365
Bank owned life insurance		20,535			20,451			20,375			20,301			20,220
FHLB stock		11,523			12,889			12,775			11,911			11,654
Deferred income taxes		7,011			5,786			5,984			7,517			8,690
Other investments		5,226			4,592			4,507			4,392			4,437
Other assets		5,343			18,351			19,018			19,770			18,846

Total assets	$	2,246,506		$	2,123,882		$	2,131,225		$	2,059,816		$	2,061,665

Liabilities and shareholders’ equity
Interest-bearing deposits:
Interest-bearing checking	$	277,228		$	256,890		$	263,247		$	269,409		$	266,787
Money market		566,354			550,238			559,070			556,076			544,310
Savings		138,992			142,364			145,312			141,979			135,240
Wholesale non-maturity deposits		66,693			41,290			41,840			42,704			42,937
Wholesale time deposits		73,458			60,171			50,152			34,104			34,639
Time deposits		118,400			121,158			123,572			130,983			140,794

Total interest-bearing deposits		1,241,125			1,172,111			1,183,193			1,175,255			1,164,707
Non-interest-bearing deposits		446,903			438,221			436,739			404,340			426,640

Total deposits		1,688,028			1,610,332			1,619,932			1,579,595			1,591,347
Long-term FHLB advances and other borrowings		260,146			230,574			233,132			214,640			205,644
Short-term borrowings		23,824			13,980			13,320			10,739			10,891
Other liabilities		29,034			21,387			21,470			19,365			23,885
Shareholders’ equity		245,474			247,609			243,371			235,477			229,898

Total liabilities and shareholders’ equity	$	2,246,506		$	2,123,882		$	2,131,225		$	2,059,816		$	2,061,665

Bryn Mawr Bank Corporation

Consolidated Quarterly Average Balance Sheets—(unaudited)

(dollars in thousands)


	For The Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
	2014			2014			2014			2014			2013
Assets
Interest-bearing deposits with banks	$	115,276		$	78,324		$	70,775		$	67,809		$	56,569
Investment securities—available for sale		252,422			265,491			271,830			281,572			310,183
Investment securities—trading		3,804			3,599			3,518			3,438			2,368
Loans held for sale		982			1,116			1,280			504			1,197
Portfolio loans and leases		1,654,239			1,629,102			1,599,104			1,549,161			1,522,408

Earning assets		2,026,723			1,977,632			1,946,507			1,902,484			1,892,725
Cash and due from banks		13,795			12,739			12,067			12,302			13,132
Allowance for loan and lease losses		(15,837	)		(15,672	)		(16,073	)		(15,761	)		(15,226	)
Premises and equipment		33,290			32,763			32,829			32,358			31,770
Goodwill		35,539			32,843			32,843			32,843			32,843
Other intangible assets		23,392			17,821			18,459			19,095			19,741
Bank owned life insurance		20,478			20,402			20,327			20,252			20,163
FHLB stock		11,419			12,864			12,663			11,915			12,242
Deferred income taxes		2,941			5,926			7,119			7,908			11,733
Other assets		31,102			30,491			29,750			29,940			22,288

Total assets	$	2,182,842		$	2,127,809		$	2,096,491		$	2,053,336		$	2,041,411

Liabilities and shareholders’ equity
Interest-bearing deposits:
Interest-bearing checking	$	259,408		$	255,601		$	264,087		$	263,612		$	248,722
Money market		553,708			565,803			556,241			545,108			548,351
Savings		143,650			143,877			143,418			137,812			137,327
Wholesale non-maturity deposits		60,197			43,256			42,970			41,828			48,465
Wholesale time deposits		68,525			54,976			48,791			35,133			22,735
Time deposits		120,855			121,986			127,167			134,574			142,258

Total interest-bearing deposits		1,206,343			1,185,499			1,182,674			1,158,067			1,147,858
Non-interest bearing deposits		446,252			426,883			416,104			415,514			420,072

Total deposits		1,652,595			1,612,382			1,598,778			1,573,581			1,567,930
Long-term FHLB advances and other borrowings		237,835			235,091			222,851			212,405			204,780
Short-term borrowings		19,407			14,074			17,220			13,090			25,364
Other liabilities		24,070			22,298			19,368			22,546			23,401
Shareholders’ equity		248,935			243,964			238,274			231,714			219,936

Total liabilities and shareholders’ equity	$	2,182,842		$	2,127,809		$	2,096,491		$	2,053,336		$	2,041,411

Bryn Mawr Bank Corporation

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

(dollars in thousands)


	For The Twelve Months Ended December 31,
	2014			2013
Assets
Interest bearing deposits with banks	$	83,163		$	67,124
Investment securities—available for sale		267,743			320,868
Investment securities—trading		3,591			2,106
Loans held for sale		972			1,729
Portfolio loans and leases		1,608,248			1,453,555

Earning assets		1,963,717			1,845,382
Cash and due from banks		12,730			12,946
Allowance for loan and lease losses		(15,836	)		(14,800	)
Premises and equipment		32,812			31,414
Goodwill		33,522			32,869
Intangible assets		19,699			20,724
Bank owned life insurance		20,365			20,041
FHLB stock		12,144			11,881
Deferred income taxes		5,960			11,714
Other assets		30,369			22,329

Total assets	$	2,115,482		$	1,994,500

Liabilities and shareholders’ equity
Interest-bearing deposits:
Interest-bearing checking	$	260,652		$	257,292
Money market		555,267			563,914
Savings		142,210			134,771
Wholesale non-maturity deposits		47,103			41,564
Wholesale time deposits		51,956			14,210
Time deposits		126,097			162,397

Total interest-bearing deposits		1,183,285			1,174,148
Non-interest-bearing deposits		426,274			400,254

Total deposits		1,609,559			1,574,402
Long-term FHLB advances and other borrowings		227,137			167,089
Short-term borrowings		15,960			16,457
Other liabilities		22,048			24,502
Shareholders’ equity		240,778			212,050

Total liabilities and shareholders’ equity	$	2,115,482		$	1,994,500

Bryn Mawr Bank Corporation

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


	For The Three Months Ended
	December 31, 2014									September 30, 2014									June 30, 2014									March 31, 2014									December 31, 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	$	115,276		$	65			0.22	%	$	78,324		$	46			0.23	%	$	70,775		$	44			0.25	%	$	67,809		$	37			0.22	%	$	56,569		$	27			0.19	%
Investment securities—available for sale:
Taxable		221,190			973			1.75	%		230,457			884			1.52	%		235,853			903			1.54	%		245,006			972			1.61	%		271,152			1,127			1.65	%
Tax-exempt		31,232			142			1.80	%		35,034			149			1.69	%		35,977			151			1.68	%		36,566			153			1.70	%		39,031			159			1.62	%

Total investment securities—available for sale		252,422			1,115			1.75	%		265,491			1,033			1.54	%		271,830			1,054			1.56	%		281,572			1,125			1.62	%		310,183			1,286			1.64	%
Investment securities —trading		3,804			9			0.94	%		3,599			9			0.99	%		3,518			17			1.94	%		3,438			7			0.83	%		2,368			51			8.54	%
Loans and leases *		1,655,221			19,972			4.79	%		1,630,218			19,767			4.81	%		1,600,384			19,936			5.00	%		1,549,665			19,107			5.00	%		1,523,605			19,277			5.02	%

Total interest-earning assets		2,026,723			21,161			4.14	%		1,977,632			20,855			4.18	%		1,946,507			21,051			4.34	%		1,902,484			20,276			4.32	%		1,892,725			20,641			4.33	%
Cash and due from banks		13,795									12,739									12,067									12,302									13,132
Less allowance for loan and lease losses		(15,837	)								(15,672	)								(16,073	)								(15,761	)								(15,226	)
Other assets		158,161									153,110									153,990									154,311									150,780

Total assets	$	2,182,842								$	2,127,809								$	2,096,491								$	2,053,336								$	2,041,411


Liabilities:
Interest-bearing deposits:
Savings, NOW and market rate deposits	$	956,766		$	422			0.17	%	$	965,281		$	430			0.18	%	$	963,746		$	420			0.17	%	$	946,532		$	405			0.17	%	$	934,400		$	414			0.18	%
Wholesale deposits		128,722			190			0.59	%		98,232			175			0.71	%		91,761			147			0.64	%		76,961			114			0.60	%		71,200			85			0.47	%
Time deposits		120,855			143			0.47	%		121,986			137			0.45	%		127,167			146			0.46	%		134,574			170			0.51	%		142,258			151			0.42	%

Total interest-bearing deposits		1,206,343			755			0.25	%		1,185,499			742			0.25	%		1,182,674			713			0.24	%		1,158,067			689			0.24	%		1,147,858			650			0.22	%
Borrowings:
Short-term borrowings		19,407			4			0.08	%		14,074			3			0.08	%		17,220			5			0.12	%		13,090			3			0.09	%		25,364			12			0.19	%
Long-term FHLB advances and other borrowings		237,835			809			1.35	%		235,091			828			1.40	%		222,851			781			1.41	%		212,405			746			1.42	%		204,780			738			1.43	%

Total borrowings		257,242			813			1.25	%		249,165			831			1.32	%		240,071			786			1.31	%		225,495			749			1.35	%		230,144			750			1.29	%
Total interest-bearing liabilities		1,463,585			1,568			0.43	%		1,434,664			1,573			0.43	%		1,422,745			1,499			0.42	%		1,383,562			1,438			0.42	%		1,378,002			1,400			0.40	%
Noninterest-bearing deposits		446,252									426,883									416,104									415,514									420,072
Other liabilities		24,070									22,298									19,368									22,546									23,401

Total noninterest-bearing liabilities		470,322									449,181									435,472									438,060									443,473
Total liabilities		1,933,907									1,883,845									1,858,217									1,821,622									1,821,475
Shareholders’ equity		248,935									243,964									238,274									231,714									219,936

Total liabilities and shareholders’ equity	$	2,182,842								$	2,127,809								$	2,096,491								$	2,053,336								$	2,041,411

Interest income to earning assets								4.14	%								4.18	%								4.34	%								4.32	%								4.33	%
Net interest spread								3.71	%								3.75	%								3.92	%								3.90	%								3.93	%
Effect of noninterest-bearing sources								0.13	%								0.12	%								0.11	%								0.12	%								0.10	%

Tax-equivalent net interest income/ margin on earning assets				$	19,593			3.84	%				$	19,282			3.87	%				$	19,552			4.03	%				$	18,838			4.02	%				$	19,241			4.03	%

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


Supplemental Information Regarding Accretion of Fair Value Marks
Accretion of fair value marks on loans				$	513								$	516								$	941								$	761								$	879
Accretion of fair value marks on time deposits					4									6									6									7									49
Accretion of fair value marks on borrowings					30									30									30									30									30

Net interest income from fair value marks				$	547								$	552								$	977								$	798								$	958

Effect of fair value mark accretion on tax-equivalent net interest margin					0.11	%								0.11	%								0.20	%								0.17	%								0.20	%

*	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 Twelve Months Ended December 31,
	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	$	83,163			193			0.23	%	$	67,124			158			0.24	%
Investment securities available for sale:																	%
Taxable		233,054			3,740			1.60	%		282,978			3,849			1.36	%
Tax-exempt		34,689			594			1.71	%		37,890			588			1.55	%

Investment securities—available for sale		267,743			4,334			1.62	%		320,868			4,437			1.38	%
Investment securities—trading		3,591			33			0.92	%		2,106			73			3.47	%
Loans and leases *		1,609,220			78,781			4.90	%		1,455,284			74,180			5.10	%

Total interest earning assets		1,963,717			83,341			4.24	%		1,845,382			78,848			4.27	%
Cash and due from banks		12,730									12,946
Less allowance for loan and lease losses		(15,836	)								(14,800	)
Other assets		154,871									150,972

Total assets	$	2,115,482								$	1,994,500

Liabilities:
Savings,NOW and market rate deposits	$	958,129		$	1,675			0.17	%	$	955,977		$	1,757			0.18	%
Wholesale deposits		99,059			627			0.63	%		55,774			238			0.43	%
Time deposits		126,097			596			0.47	%		162,397			763			0.47	%

Total interest-bearing deposits	$	1,183,285			2,898			0.24	%	$	1,174,148			2,758			0.23	%
Short-term borrowings		15,960			17			0.11	%		167,089			2,644			1.58	%
Long-term FHLB advances and other borrowings		227,137			3,163			1.39	%		16,457			25			0.15	%

Total Borrowings		243,097			3,180			1.31	%		183,546			2,669			1.45	%
Total interest-bearing liabilities		1,426,382			6,078			0.43	%		1,357,694			5,427			0.40	%
Noninterest-bearing deposits		426,274									400,254
Other liabilities		22,048									24,502

Total noninterest-bearing liabilities		448,322									424,756
Total liabilities		1,874,704									1,782,450
Shareholders’ equity		240,778									212,050

Total liabilities and shareholders’ equity	$	2,115,482								$	1,994,500

Interest income to earning assets								4.24	%								4.27	%
Net interest spread								3.81	%								3.87	%
Effect of noninterest-bearing sources								0.12	%								0.11	%

Tax-equivalent net interest income/ margin on earning assets				$	77,263			3.93	%				$	73,421			3.98	%

Tax-equivalent adjustment				$	435			0.02	%				$	431			0.02	%

Supplemental Information Regarding Accretion of Fair Value Marks
Accretion of fair value marks on loans				$	2,730								$	3,064
Accretion of fair value marks on time deposits					23									349
Accretion of fair value marks on borrowings					121									150

Net interest income from fair value marks				$	2,874								$	3,563

Effect of fair value mark accretion on tax-equivalent net interest margin					0.15	%								0.19	%

*	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 lease 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
	December 31,			September 30,			June 30,			March 31,			December 31,
	2014			2014			2014			2014			2013
Asset Quality Data
Nonaccrual loans and leases	$	10,096		$	8,336		$	8,388		$	10,236		$	10,530
90 days or more past due loans, still accruing		—			—			—			—			—

Nonperforming loans and leases		10,096			8,336			8,388			10,236			10,530
Other real estate owned		1,147			894			853			1,040			855

Total nonperforming assets	$	11,243		$	9,230		$	9,241		$	11,276		$	11,385

Troubled debt restructurings included in nonperforming assets	$	4,315		$	1,725		$	1,597		$	2,698		$	1,699
Troubled debt restructurings in compliance with modified terms		4,157			6,913			7,487			6,667			7,277

Total troubled debt restructurings	$	8,472		$	8,638		$	9,084		$	9,365		$	8,976
Nonperforming loans and leases / portfolio loans & leases		0.61	%		0.51	%		0.52	%		0.65	%		0.68	%
Nonperforming assets / total assets		0.50	%		0.43	%		0.43	%		0.55	%		0.55	%
Net loan and lease charge-offs / average loans and leases (annualized)		0.17	%		0.10	%		0.05	%		0.13	%		0.09	%
Delinquency rate*—Performing and nonperforming loans and leases 30 days or more past due		0.50	%		0.48	%		0.64	%		0.59	%		0.65	%
Performing loans and leases—30-89 days past due	$	2,232		$	1,739		$	3,743		$	1,815		$	1,718
Delinquency rate*—Performing loans and leases—30-89 days past due		0.13	%		0.11	%		0.23	%		0.12	%		0.11	%
* as a percentage of total loans and leases
Changes in the allowance for loan and lease losses:
Balance, beginning of period	$	15,599		$	15,470		$	15,770		$	15,515		$	15,027
Charge-offs		(864	)		(493	)		(304	)		(538	)		(484	)
Recoveries		167			72			104			43			160

Net charge-offs		(697	)		(421	)		(200	)		(495	)		(324	)
Provision for loan and lease losses		(316	)		550			(100	)		750			812

Balance, end of period	$	14,586		$	15,599		$	15,470		$	15,770		$	15,515

Allowance for loan and lease losses / loans and leases		0.88	%		0.95	%		0.96	%		1.01	%		1.00	%
Allowance for loan and lease losses / nonperforming loans and leases		144.5	%		187.1	%		184.4	%		154.1	%		147.3	%

Bryn Mawr Bank Corporation

Consolidated Selected Financial Data—(unaudited)

(dollars in thousands, except per share data)


	For The Three Months Ended or As Of
	December 31,			September 30,			June 30,			March 31,			December 31,
	2014			2014			2014			2014			2013
Selected ratios (annualized):
Return on average assets		1.28	%		1.21	%		1.45	%		1.32	%		1.26	%
Return on average shareholders’ equity		11.23	%		10.58	%		12.80	%		11.71	%		11.67	%
Return on average tangible equity ⁽²⁾		14.71	%		13.35	%		16.31	%		15.10	%		15.35	%
Tax-equivalent yield on loans and leases		4.79	%		4.81	%		5.00	%		5.00	%		5.02	%
Tax-equivalent yield on interest-earning assets		4.14	%		4.18	%		4.34	%		4.32	%		4.33	%
Cost of interest-bearing funds		0.43	%		0.43	%		0.42	%		0.42	%		0.40	%
Tax-equivalent net interest margin		3.84	%		3.87	%		4.03	%		4.02	%		4.03	%
Book value per share	$	17.83		$	18.03		$	17.74		$	17.24		$	16.84
Tangible book value per share	$	13.58		$	14.37		$	14.03		$	13.47		$	13.02
Shares outstanding at end of period		13,769,336			13,730,581			13,719,337			13,656,979			13,650,354
Selected data:
Mortgage loans originated	$	29,929		$	29,861		$	39,575		$	17,892		$	37,190
Residential mortgage loans sold—servicing retained	$	14,382		$	16,237		$	15,154		$	9,086		$	12,523
Residential mortgage loans sold—servicing released		92			539			—			152			531

Total residential mortgage loans sold	$	14,474		$	16,776		$	15,154		$	9,238		$	13,054

Yield on residential mortgage loans sold		3.25	%		2.62	%		3.54	%		3.51	%		4.05	%
Loans serviced for others (includes residential mortgage, commercial mortgage and commercial & industrial)	$	618,001		$	624,598		$	622,808		$	618,348		$	628,879
Total wealth assets under management, administration, supervision and brokerage ⁽¹⁾	$	7,699,908		$	7,580,779		$	7,569,842		$	7,361,977		$	7,268,273

⁽¹⁾

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

⁽²⁾

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


	For The Twelve Months Ended December 31,
	2014			2013
Selected ratios (annualized):
Return on average assets		1.32	%		1.23	%
Return on average shareholders’ equity		11.56	%		11.53	%
Return on average tangible equity ⁽¹⁾		14.85	%		15.43	%
Tax-equivalent yield on loans and leases		4.90	%		5.10	%
Tax-equivalent yield on interest-earning assets		4.24	%		4.27	%
Cost of interest-bearing liabilities		0.43	%		0.40	%
Tax-equivalent net interest margin		3.93	%		3.98	%
Selected data:
Residential mortgage loans originated	$	117,257		$	197,787
Residential mortgage loans sold—servicing retained	$	54,859		$	127,914
Residential mortgage loans sold—servicing released		783			1,067

Total residential mortgage loans sold	$	55,642		$	128,981

⁽¹⁾	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 December 31, 2014							As of December 31, 2013
					Net							Net
	Amortized		Fair		Unrealized			Amortized		Fair		Unrealized
SECURITY DESCRIPTION	Cost		Value		Gain / (Loss)			Cost		Value		Gain / (Loss)
U.S. Treasury securities	$	102	$	100	$	(2	)	$	102	$	99	$	(3	)
Obligations of the U.S. Government and agencies		66,881		66,762		(119	)		71,097		69,568		(1,529	)
State & political subdivisions		28,955		29,045		90			37,140		36,977		(163	)
Mortgage-backed securities		79,498		81,382		1,884			119,044		119,363		319
Collateralized mortgage obligations		34,618		34,797		179			44,463		44,243		(220	)
Other debt securities		1,900		1,900		—			1,900		1,887		(13	)
Bond mutual funds		11,956		11,835		(121	)		11,456		11,457		1
Other investments		3,643		3,756		113			1,925		2,214		289

Total investment portfolio available for sale	$	227,553	$	229,577	$	2,024		$	287,127	$	285,808	$	(1,319	)


Capital Ratios
	Regulatory Minimum
	To Be			December 31,			September 30,			June 30,			March 31,			December 31,
Bryn Mawr Trust Company	Well Capitalized			2014			2014			2014			2014			2013
Tier I capital to risk weighted assets (“RWA”)		6.00	%		11.32	%		11.60	%		11.68	%		11.65	%		11.40	%
Total (Tier II) capital to RWA		10.00	%		12.19	%		12.54	%		12.62	%		12.63	%		12.38	%
Tier I leverage ratio		5.00	%		8.98	%		9.39	%		9.51	%		9.43	%		9.14	%
Tangible equity ratio		N/A			8.19	%		9.21	%		9.18	%		9.18	%		8.78	%
Bryn Mawr Bank Corporation
Tier I capital to RWA		6.00	%		12.00	%		12.05	%		11.85	%		11.71	%		11.57	%
Total (Tier II) capital to RWA		10.00	%		12.87	%		12.99	%		12.79	%		12.69	%		12.55	%
Tier I leverage ratio		5.00	%		9.43	%		9.77	%		9.67	%		9.50	%		9.29	%
Tangible equity ratio		N/A			8.61	%		9.58	%		9.32	%		9.23	%		8.92	%

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BRYN MAWR BANK CORP Reports